investment managementdespite periods of volatility, global equities ended the first half of 2015 in...

2015Brookfield Select Opportunities Income FundBSO.UN

Interim Management Report of Fund PerformanceFor the period from January 1, 2015 to June 30, 2015

Brookfield Investment Management

IN PROFILE

Brookfield Select Opportunities Income Fund (the “Fund”) is managed by Brookfield InvestmentManagement (Canada) Inc. (“BIM Canada”). BIM Canada is a subsidiary of Brookfield AssetManagement Inc., a global alternative asset manager with over US$200 billion of assets undermanagement as at June 30, 2015 and over a 100-year history of owning and operating assets with afocus on property, renewable energy, infrastructure and private equity.

BIM Canada is also the investment manager of the Fund.

BSO.UN (TSX LISTED) UNIT INFORMATION

Units Outstanding (June 30, 2015) 19,200,000 Units

Targeted Quarterly Distributions: The quarterly distributions are targeted to be $0.15per Unit ($0.60 per annum representing an annualcash distribution of 6.0% based on the $10.00 per Unitissue price). The Fund does not have a fixeddistribution.

Record Date: The last business day of each of March, June,September and December.

Payment Date: No later than the 15th business day of the monthfollowing the distribution Record Date.

Brookfield Select Opportunities Income Fund

2015 Interim Management Report of Fund Performance | 1

LETTER TO UNITHOLDERS

Dear Unitholders,

We are pleased to provide this Interim Management Report of Fund Performance for Brookfield SelectOpportunities Income Fund (the “Fund”) for the six months ended June 30, 2015 (the “Period”).

The Fund was created with the objectives to (i) provide holders of units (“Unitholders”) with quarterlycash distributions; (ii) maximize total return for Unitholders through distributions and capitalappreciation; and (iii) preserve capital. The quarterly distributions are currently targeted at $0.15 perUnit or $0.60 per annum. To achieve this level of income, the Fund invests primarily in fixed income andequity securities on a global basis (the “Portfolio”). The Fund focuses on, but is not limited to,investments in high yield corporate debt and publicly-listed equity securities of infrastructure and realestate companies.

As at June 30, 2015, the net asset value (“NAV”) per Unit was $7.40 compared to a net asset value perUnit of $7.64 at December 31, 2014. For the six months ended June 30, 2015 (the “Period”), the Fundhad a total return of 0.64% including assumed reinvestment of the Fund’s distributions to Unitholdersduring the Period of $0.30 per Unit.

Despite periods of volatility, global equities ended the first half of 2015 in positive territory. The MSCIWorld Index returned 3.0% from January 1, 2015 to June 30, 2015, led by Asia Pacific (+9.0%), andEurope (+4.3%), with weaker returns from North America (+1.2%).1 Market performance weakened intothe end of the period, as several key developments rattled investor confidence. Of primary concernwas the potential for Greece to default on its sovereign debt obligations and possibly exit the Eurozone,while the governor of Puerto Rico announced late in June that the island would not be able to pay itsapproximately $72 billion in debt.2 In addition, China’s equity markets suffered significant intra-dayvolatility during June, retreating from strong year-to-date performance.3 Lastly, the threat ofincremental oil supply from the potential removal of economic sanctions against Iran, in the face ofalready flush global supply caused investors to worry about further declines in global energy prices. Asa result of this geopolitical uncertainty, the Chicago Board Options Exchange Volatility Index (VIX)spiked at the end of June to its highest level since February 2015.4

Across global equity markets, healthcare (+10.3%) was the strongest sector, followed by consumerdiscretionary (+7.3%) and telecommunications (+5.7%).5 In contrast, the utilities (-7.5%) and energy(-4.7%) sectors significantly underperformed for the period, as investor concern over rising interestrates and lower energy prices negatively impacted these sectors. Other more defensive sectors,including industrials (+1.3%) and materials (+1.4%), also underperformed. In the U.S., economic dataremained mixed, as GDP growth turned negative in the first quarter of 2015 to an annualized rate of-0.7%.6 However, the U.S. unemployment rate declined in the period from 5.6% to 5.3%, and the U.S.economy added 223,000 jobs in June.7 As expected, the U.S. Federal Reserve (Fed) did not raiseinterest rates at its June meeting, but Fed Chair Janet Yellen indicated that a rate hike was likely to

1 As measured by the MSCI World Index, a free float-adjusted market capitalization weighted index that is designed to measurethe equity market performance of developed markets.

2 Sources:http://www.nytimes.com/2015/06/29/business/dealbook/puerto-ricos-governor-says-islands-debts-are-not-payable.html

3 Source: Bloomberg4 Source: Bloomberg5 Sector returns are measured by the MSCI World Health Care Index (gross), the MSCI World Consumer Discretionary Index (gross),the MSCI World Telecommunication Services Index (gross), the MSCI World Utilities Index (gross), the MSCI World Energy Index(gross), the MSCI World Industrials Index (gross) and the MSCI World Materials Index (gross). Source: Bloomberg.

6 Source: Bureau of Economic Analysis, U.S. Department of Commerce7 Source: Bureau of Labor Statistics, U.S. Department of Labor



occur later in 2015. Of note, the Fed suggested that interest rate increases would be implementedmore gradually than previously anticipated.8 For the period, the yield on the U.S. 10-year Treasury noteincreased to 2.35% on June 30, 2015, compared with 2.17% as of December 31, 2014.9

In contrast to the negative trend of most fixed income markets for the second quarter, the high-yieldbond market produced very modest positive results for the quarter. The low correlation of high-yield tointerest rates served to produce this positive result. Within the high-yield market, higher-quality BBbonds declined (reflecting their greater interest rate sensitivity) and CCC bonds declined, reflectinggrowing credit concerns in certain industry sectors, namely metals, mining and energy. Despite risinginterest rates and positive total returns for high-yield, the high-yield market spread increased from 474basis points to 490 basis points10. This spread widening was in part due to a reversal in high yield mutualfund flows. These flows turned sharply negative in the second quarter, totaling $5 billion in outflows,a marked contrast to the $9.1 billion inflow in the first quarter11. Investors saw positive trends in thenew issue market this quarter with $95.6 billion of new bonds issued, matching the pace of the firstquarter. While we were concerned in the first quarter about the decline in refinancing as a use ofproceeds, which had dropped to 44%, this metric totaled 51% year to date through June, roughlyparalleling the rate seen in 2014. Refinancing has a beneficial effect on corporate credit by reducinginterest payments and extending maturities.

Outlook

The following is our outlook for each of our three focus investment areas:

High yield corporate debt: We believe that the HY market is in the midst of a mid-cycle correction andthat the outlook for high-yield credit remains relatively benign. Market spreads are substantial in viewof the only modest embedded credit risk among high-yield companies. A number of concerning trendsin the new issue market observed in the first quarter of 2015 have reversed, suggesting that investorsare maintaining reasonable credit standards and corporate treasurers are limiting overall risk. On theother hand, a number of late cycle events are occurring. Distress continues to build in the energy,metals and natural resource sectors, driven by lower product pricing. It seems likely that defaults inthese sectors may increase, driving the overall default rate higher. While we note these eventscarefully, we believe that on average overall market defaults should remain at or below long-termaverages, and believe that current spreads adequately compensate investors for these risks. We alsobelieve that current market spreads are sufficiently wide that higher interest rates should notnegatively impact the overall high-yield market.

Publicly-listed infrastructure securities: Despite near-term volatility due to macro concerns and thespecter of rising interest rates, we believe the fundamental outlook for most infrastructure sectorsremains positive. We are monitoring the impact of commodity price fluctuations and decreasing capitalflows on the performance of MLPs, but we continue to believe in the long-term fundamentals for theMLP sector. We expect any increase in U.S. interest rates will be a slow and deliberate process,resulting in low nominal rates for the foreseeable future. These low rates should be supportive ofinfrastructure valuations. From a regional perspective, we believe that the U.S. has significant growthpotential, although recent data remains mixed. We maintain our view that quantitative easing activityin Europe will provide support for the region. From a sector perspective, we continue to monitor thepotential impact of sustained lower oil prices on our energy infrastructure holdings as lower oil priceswill likely reduce the growth outlooks and capital expenditures of E&P companies, which in turn willreduce the growth rate of energy infrastructure companies.

8 Source: http://www.nytimes.com/2015/06/18/business/economy/federal-reserve-interest-rates-yellen.html9 Source: U.S. Department of Treasury10Source: Merrill Lynch, Bloomberg. Data as of June 30, 2015.11Source: J.P. Morgan, High Yield Market Monitor, July 1, 2015. All subsequent data is from this publication.



Publicly-listed real estate securities: Although we had no exposure to this sector at the end of thePeriod, we maintain our positive outlook for global real estate securities, although we believe the U.S.is in a stronger growth position than the rest of the world. In the past several months, U.S. REITs havebeen negatively affected by the specter of rising U.S. interest rates. Notwithstanding this short termvolatility, we would note that over longer time periods, U.S. REIT valuations tend to be dictatedprimarily by property market fundamentals, which still appear strong in the U.S. We expect anyincrease in U.S. interest rates will be a slow and deliberate process, resulting in low nominal rates forthe foreseeable future. As a result, we believe we are currently in the middle of the property cycle inthe U.S., with meaningful growth remaining, supported by strong fundamentals. In addition, weanticipate that asset values will continue to move higher in developed markets, as we see acceleratingcompetition for direct asset investment. We also believe near-term weakness could lead to merger andacquisition (M&A) activity, which should further support asset values.

We believe the Fund is currently well-positioned to generate its target distributions and we will seekto continue to take profits as appropriate and redeploy capital into other high yielding securities thathave attractive risk-reward characteristics.

We welcome your questions and comments, and encourage you to contact our Investor Relations teamat (855) 777-8001 or visit us at www.brookfieldim.com for more information. Thank you for yoursupport.

Gail Cecil, Managing DirectorOn behalf of the Manager and Investment Manager,Brookfield Investment Management (Canada) Inc.



MANAGEMENT REPORT OF FUND PERFORMANCE

This interimmanagement report of fund performance contains financial highlights but does not containthe complete interim financial statements of Brookfield Select Opportunities Income Fund (the“Fund”). The interim financial statements may contain information not included in the managementreport of fund performance. You can get a copy of the interim financial statements at your request, andat no cost, by contacting us (see contact information at end of this report) or by visiting our website atwww.brookfieldim.com or by viewing our filings on SEDAR at www.sedar.com. Unitholders may alsocontact us to request a free copy of the Fund’s proxy voting policies and procedures, proxy votingdisclosure record, or quarterly portfolio disclosure.

This report may contain forward-looking statements. The use of any of the words anticipate, may, will,expect, estimate, should, believe and similar expressions are intended to identify forward-lookingstatements. Such statements reflect the opinion of Brookfield Investment Management (Canada) Inc.(“Investment Manager” or “BIM Canada”) regarding factors that might be reasonably expected toaffect the performance and the distribution on units of the Fund and are based on information availableat the time of writing. The Investment Manager believes that the expectations reflected in theseforward-looking statements and in the report are reasonable but no assurance can be given that theseexpectations or the report will prove to be correct and accordingly, they should not be unduly reliedupon. These statements speak only as at the date of the report. Actual events and outcomes may differmaterially from those described in these forward-looking statements or report.

Unless otherwise indicated, all information is presented as at June 30, 2015, and expressed in Canadiandollars.

None of the websites referred to in this annual management report of fund performance, or any of theinformation on such websites, are incorporated by reference in this annual management report of fundperformance.

INVESTMENT OBJECTIVES AND STRATEGIES

The Fund endeavours to (i) provide holders of units (“Unitholders”) with quarterly cash distributionscurrently targeted at $0.15 per unit ($0.60 per annum representing an annual cash distribution of 6.0%based on the $10.00 per unit issue price); (ii) maximize total return for Unitholders throughdistributions and capital appreciation; and (iii) preserve capital.

The Fund invests in a portfolio (the “Portfolio”) comprised primarily of fixed income and equitysecurities on a global basis. The Fund focuses on, but is not limited to, investments in high yieldcorporate debt and publicly-listed equity securities of infrastructure and real estate companies. BIMCanada is the manager (the “Manager”) and the investment manager of the Fund.

RISK

At June 30, 2015, approximately two-thirds of the Portfolio was invested in high yield fixed incomesecurities of companies domiciled in the United States and to a lesser extent, Canada, Mexico andBrazil. The remainder of the Portfolio was invested in high yielding equities which representedapproximately one-third of the Portfolio holdings as at June 30, 2015, a decrease from approximatelyhalf of the Portfolio when the Fund became fully invested and flat from December 31, 2014. ThePortfolio holdings are exposed to various risks including risks related to the credit quality of the issuerof the securities, the trading liquidity of the securities and the currency in which the securities aredenominated. The Fund seeks to minimize potentially adverse effects of these risks on the Portfolio’s



performance by employing experienced portfolio managers and by continuously monitoring thePortfolio’s securities positions and markets. Over the period from the commencement of the Fund’soperations on May 23, 2014 to June 30, 2015 (the “Period”) there was no material change in the overalllevel of risk created by the credit quality, trading liquidity or currency denomination of the investmentsemployed by the Fund.

As at June 30, 2015, the Fund had exposure to forward currency contracts and equity total returnswaps. The Investment Manager seeks to mitigate the counterparty risk arising from such arrangementsthrough the careful selection of its derivative contract counterparties. As at June 30, 2015, the Fundheld five positions through equity total return swaps representing $22.2 million of gross exposurecompared to December 31, 2014 the Fund held four positions through equity total return swapsrepresenting $17.8 million of gross exposure. The Fund also had US$70.0 million and £5.9 million(December 31, 2014 - US$70.0 million and £5.9 million) of net forward currency contracts in place toprotect against a strengthening in the Canadian dollar against the U.S. dollar and the British Pound,respectively.

For discussion of the Fund’s use of leverage, please see “Results of Operations”.

RESULTS OF OPERATIONS

The Fund began operations on May 23, 2014 when it completed an initial public offering of 19,200,000units (the “Units”) at $10.00 per Unit, for gross proceeds of $192.0 million and net proceeds of$181.1 million after deducting issuance costs of approximately $10.9 million.

The Fund’s net asset value was $142.1 million as at June 30, 2015, a decrease of $4.5 million from$146.6 million as at December 31, 2014. The decrease in net asset value was largely comprised of$5.7 million of distributions to Unitholders offset by an operating profit of $1.2 million.

As at June 30, 2015, the net asset value (“NAV”) per Unit was $7.40 compared to $7.64 at December 31,2014. The Fund’s total return was 0.64% for the Period, essentially flat.

There was a “risk off” posture in certain equity and debt markets that began in May as a result ofseveral factors.

• Uncertainty surrounding the potential default of Greece on its sovereign obligations and thedestabilizing threat of the country exiting the Euro caused investors to worry about possiblecontagion into other sectors of global markets.

• The incredible 50% rise of mainland Chinese stocks from January to June as measured by theCSI 300 Index and the bursting of that bubble erasing nearly all year-to-date gains, causedinvestors to fear a severe slowdown of growth in China.

• The threat of incremental oil supply from the potential removal of economic sanctions againstIran, in the face of already flush global oil supply caused investors to worry about furtherdeclines in global energy prices.

These macro-economic factors impacted the portfolio in a variety of ways:

As global investors fled risky assets the U.S. dollar strengthened causing price declines in most basicmaterials. In addition, a weak growth outlook for China exacerbated these price drops. Decliningcommodity prices impacted the Fund’s 15.54% weight in the basic materials sector as a percentage ofNAV as at June 30, 2015. Within the Fund’s basic materials holdings, positive performance of ImperialMetals Corporation convertible bonds, which improved on the back of favorable regulatory approvals,helped to offset negative performance in Arch Coal Inc. bonds over the Period.



During the first half of 2015 many Latin American currencies weakened against the U.S. Dollar. TheFund had an 13.67% exposure as a percentage of NAV to Latin America as at June 30, 2015, and wasimpacted by a weaker Brazilian Real and Mexican Peso. Bribery allegations arising in Brazil and Mexicoalso impacted Latin American markets. The Fund holds fixed income securities of Banco do Brasil andEmpressas ICA (a construction and infrastructure provider in Mexico) that experienced mark-to-marketdeclines as the U.S. dollar denominated debt grew in size relative to local currency operating profit.In addition, the Fund has direct exposure to the Brazilian Real through three holdings that representapproximately 2.61% of NAV. The Brazilian Real declined 12.1% over the Period.

The Fund’s holdings in Energy and energy-sensitive equities, which represented 15.74% of NAV as atJune 30, 2015 experienced mark-to-market declines as oil prices declined. The declines in equityvaluations of the Fund’s holdings in Royal Dutch Shell Plc, MarkWest Enegy Partners and EV EnergyPartners LP were partially offset by positive performance from energy-sensitive fixed incomeinvestments in MEG Energy, Forbes Energy Services and EV Energy Partners.

Also offsetting the negative trends in the Fund’s energy sensitive investments was the performance offixed income holdings with minimal or no commodity exposure, including New Albertsons Inc. bondswhich outperformed on the back of supermarket M&A rumours, and Just Energy convertible bonds oncontinued operational improvements. Separately, the Fund’s holdings in SuperMedia Inc. Term loanssuffered a setback after the Company’s disappointing first quarter results.

Changes in foreign currency added approximately 0.5% to the Fund’s total return during the Period, netof hedges. As at June 30, 2015 approximately 12.66% of the Net Asset Value of the Fund had exposureto the U.S. dollar, net of currency hedges.

Leverage is restricted to 25% of the total assets of the Fund. Accordingly, at the time of borrowing, themaximum amount of leverage that the Fund could employ is 1.33:1 (total long positions, includingleveraged positions, divided by net assets of the Fund). As at June 30, 2015, the Fund had employedleverage equal to 17.9% of the total net assets of the Fund (December 31, 2014 – 16.0%), which equatesto $25.4 million (December 31, 2014 - $23.4 million). The minimum and maximum amount ofborrowings outstanding during the six months ended June 30, 2015 was $15.8 and $33.1 million,respectively. The minimum and maximum amount of borrowings outstanding during the period May 23,2014 to December 31, 2014 was $0 and $41.3 million, respectively. The borrowings were used to growthe Fund’s investments and for working capital needs. Adding a controlled amount of leverage to theFund is consistent with the Fund’s objectives.

RECENT DEVELOPMENTS

Consistent with the Investment Manager’s strategy, the Portfolio is focused on, but not limited to,investments in high yield corporate debt and publicly-listed securities in infrastructure and real estatecompanies across a global universe. Allocations across these asset classes are based on trends and riskand return expectations, and the Investment Manager’s assessment of the macro-economicenvironment and investment landscape. At the current time, of the three focus asset classes, theInvestment Manager believes that high yield corporate debt is exhibiting value and wewill focus on highconviction ideas in lower grade credit stories with improving fundamentals, value in high yield energysector, as well as special situations in debt and equities that we believe to be undervalued by thebroader market.



RELATED PARTY TRANSACTIONS

The Manager and the Investment Manager is a wholly owned subsidiary of Brookfield AssetManagement Inc. (“Brookfield”) and manages the investment and trading activities of the Fundpursuant to a portfolio management agreement. Due to Brookfield’s ability to control the Fund,Brookfield, and its affiliates over which it has the ability to exercise control or significant influence, arerelated parties of the Fund by virtue of common control or common significant influence.

Transactions with related parties, including investment transactions, are conducted in the normalcourse of operations and are recorded at exchange amounts, which are equivalent to normal marketterms. Please refer to the section titled “Management Fees”, which outlines the fees paid to theManager by the Fund.

During the period May 23, 2014 to June 30, 2014, the Fund entered into inter-fund trades with NewHorizons Master Fund (“NHMF”) which is a related party of the Fund due to common control. TheInvestment Manager determined that these inter-fund trades complied with the Fund’s and NHMF’sinvestment restrictions and that owning the securities was consistent with the Fund’s and NHMF’sinvestment objectives. The Manager sought the approval of the Fund’s and NHMF’s Independent ReviewCommittee (the “IRC”) of the proposed inter-fund trades. The IRC provided its approval on theproposed inter fund trades on the Manager’s recommendation.

During the six months ended June 30, 2015, Brookfield purchased 13,550 units of the Fund in the openmarket.

As at June 30, 2015, Brookfield and its affiliates owned a 4.1% (December 31, 2014 - 4.0%) interest inthe Fund.



FINANCIAL HIGHLIGHTS

The following tables provide selected key financial information about the Fund and are intended tohelp you understand the Fund’s financial performance since inception:

The Fund’s Net Assets per Unit(1)For the six months ended

June 30, 2015Period from May 23, 2014to December 31, 2014(2)

Net assets, beginning of period $7.64 $9.43(3)

Increase (decrease) from operationsTotal revenue 0.40 0.44Total expenses (0.07) (0.11)Realized losses for the period (0.50) (0.33)Unrealized gains (losses) for the period 0.23 (1.49)

Total increase (decrease) from operations(4) 0.06 (1.49)

Distributions

Due to net investment income (0.30) -Due to capital gains - (0.24)Due to return of capital - (0.06)

Total distributions(5) (0.30) (0.30)

Net assets, end of period(6) $7.40 $7.64

Notes:(1) This information is derived from the Fund's financial statements as at June 30, 2015 and December 31, 2014.(2) Results are for the period from May 23, 2014 (the inception date of the Fund) to June 30, 2015.(3) The beginning of period net assets per Unit reflects the issue price of $10.00 net of offering expenses.(4) Net assets and distributions are based on the actual number of Units outstanding at the relevant time. The

increase/decrease from operations is based on the weighted average number of Units outstanding over the financialperiod. Accordingly, totals may not sum in the above table due to the different basis for computing the per unit amounts.

(5) Distributions were recorded as equal payments of $0.15 per Unit. Cash payment of distributions occurs within 15business days of the record date.

(6) This is not a reconciliation of the beginning and ending net assets per Unit.



Ratios and Supplemental DataFor the six months ended

June 30, 2015Period from May 23, 2014to December 31, 2014(1)

Net assets attributable to holders of redeemable Units $142,053,328 $146,619,401Number of redeemable units outstanding 19,200,000 19,200,000Management expense ratio(2) 1.67% 1.66%Management expense ratio before waivers andabsorptions 1.67% 1.66%

Trading expense ratio(3) 0.06% 0.26%Portfolio turnover rate(4) 19.90% 22.32%Net asset value per Unit $7.40 $7.64Closing market price $6.95 $7.04

Notes:(1) Results are for the period from May 23, 2014 (the inception date of the Fund) to December 31, 2014.(2) Management expense ratio (“MER”) is based on total expenses (excluding commissions and other portfolio transaction

costs) for the stated period, and is expressed as an annualized percentage of daily average net asset value during theperiod.

(3) The trading expense ratio represents total commissions and other portfolio transaction costs expressed as an annualizedpercentage of daily average net asset value during the period.

(4) The Fund’s portfolio turnover rate indicates how actively the Fund’s portfolio adviser manages its portfolio investments.A portfolio turnover rate of 100% is equivalent to the Fund buying and selling all of the securities in its portfolio once inthe course of the year. The higher a fund’s portfolio turnover rate in a year, the greater the trading costs payable by thefund in the year, and the greater the chance of an investor receiving taxable capital gains in the year. There is notnecessarily a relationship between a high turnover rate and the performance of a fund.

MANAGEMENT FEES

The Manager and Investment Manager are responsible for providing or arranging for all investmentadvisory and management services required by the Fund including, without limitation, managing in amanner consistent with the investment objectives, guidelines and restrictions of the Fund and forarranging for the execution of all transactions. The Manager is also responsible for the operational andadministrative functions of the Fund.

An annual management fee equal to 1.25% per annum of the net asset value of the Fund, calculateddaily and payable monthly in arrears plus applicable taxes, is paid to the Manager. The management feetotaled $1,049,348 and $265,596 for the Fund for the six months ended June 30, 2015 and the periodMay 23, 2014 to June 30, 2014, respectively.

The Manager is also eligible in each fiscal year to receive from the Fund a performance fee (the"Performance Fee") that shall be calculated and accrued monthly and be paid annually, if applicable.The Performance Fee for a given year will, subject to some exceptions regarding redemptions andissuances of Units, be equal to 20% of the amount by which the net asset value per Unit (calculatedwithout taking into account any Performance Fee) exceeds 106.0% of the Threshold Amount. TheThreshold Amount is the greater of: (i) $10.00; and (ii) the net asset value per Unit at the end of thelast fiscal year in which a Performance Fee was paid (after payment of such Performance Fee). Pleaserefer to the Fund’s declaration of trust for additional information on the Performance Fee. ThePerformance Fee accrual totaled $0 and $0 for the six months ended June 30, 2015 and the periodMay 23, 2014 to June 30, 2014, respectively.



PAST PERFORMANCE

Note that the performance information shown in this section assumes that all distributions made by theFund in the period shown were reinvested in additional Units. Also note that the performanceinformation does not take into account sales, redemption, distribution or other optional charges thatwould have reduced returns on performance. The performance of the Fund in the past does notnecessarily indicate how it will perform in the future.

Year-to-Date Returns

The following bar chart shows the Fund’s performance for the period from May 23, 2014 to June 30,2015. The bar chart shows, in percentage terms, how much an investment made on the first day of thePeriod would have increased or decreased by the last day of the Period.



SUMMARY OF INVESTMENT PORTFOLIO

The following is a summary of the Fund as at June 30, 2015. This is a summary only and will change dueto ongoing portfolio transactions of the Fund. Quarterly updates will be posted towww.brookfieldim.com

As at June 30, 2015 % of Net Asset ValueTop 25 Positions of the Fund

Hexion US Finance Corp. Bonds 8.58Lightstream Resources Ltd. Bonds 7.18New Albertson's Inc. Bonds 6.67Just Energy Group Inc. Bonds 6.66Banco do Brasil SA Bonds 6.13MEG Energy Corp. Bonds 5.95Imperial Metals Corp. Bonds 5.72SuperMedia Inc. Term Loans 5.50Forbes Energy Services Ltd. Bonds 5.43EV Energy Partners L.P. Bonds 5.34Empresas ICA S.A.B. de C.V. Bonds 4.93British American Tobacco PLC Equity 4.77JPMorgan Chase & Co. Equity 4.26Perpetual Energy Inc. Bonds 4.12Markwest Energy Partners LP Equity Total Return Swap 4.08General Motors Co. Equity 3.85HSBC Holdings PLC Equity 3.46Royal Dutch Shell PLC Equity 3.28Aberdeen Asset Management PLC Equity 3.23Bill Barrett Corp. Bonds 3.12Basic Energy Services Inc. Bonds 2.72Energy Transfer Partners L.P. Equity Total Return Swap 2.00EV Energy Partners L.P. Equity Total Return Swap 1.87GDF Suez Equity 1.86Vermilion Energy Inc. Equity 1.85

Total 112.56



As at June 30, 2015 % of Net Asset ValueSector Allocation of the Fund

Basic Materials 15.54Cash and Cash Equivalents 0.91Consumer Cyclical 3.85Consumer Non-Cyclical 12.51Energy 36.32Financials 19.99Infrastructure 28.86Media 5.50Other Liabilities and Accrued Investment Income (7.85)

Total(1) 115.63

(1) The Fund has notional exposure resulting from derivatives (excluding derivatives used for purposes of hedging) representing15.63% of Net Asset Value. Table includes this notional value of derivatives and therefore do not sum to 100% of the Net AssetValue.



FUND INFORMATION

MANAGER AND INVESTMENT MANAGER

Brookfield Investment Management(Canada) Inc.

Gail CecilDirector, President & Chief Executive Officer

Jonathan TyrasDirector, Chief Financial Officer, Treasurer, andSecretary

Craig NobleDirector

INDEPENDENT REVIEW COMMITTEE

John P. Barratt (Chair)Corporate Director

James L. R. KellyPresidentEarth Power Inc.

Frank LochanCorporate Director

CONTACT INFORMATION

Brookfield Select Opportunities Income Fund welcomes inquiries from Unitholders, analysts, mediarepresentatives or other interested parties.

Manager, Investment Manager, and Trustee

Brookfield Investment Management(Canada) Inc.Brookfield Place181 Bay Street, Suite 300Toronto, OntarioM5J 2T3t. 855.777.8001w. www.brookfieldim.com

Transfer Agent and Registrar

Unitholder inquiries relating to distributions,address changes and Unitholder accountinformation should be directed to the Fund’sTransfer Agent:Valiant Trust Company710, 130 King Street WestToronto, Ontario M5X 1A9t. 866.313.1872 (toll-free North America)f. 855.375.6916 (toll-free North America)International 416.360.1646e. [email protected]. www.valianttrust.com



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