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2018 Brookfield Select Opportunities Income Fund BSO.UN Interim Management Report of Fund Performance For the period from January 1, 2018 to June 30, 2018 Brookfield Investment Management

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2018Brookfield Select Opportunities Income FundBSO.UNInterim Management Report of Fund PerformanceFor the period from January 1, 2018 to June 30, 2018

Brookfield Investment Management

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IN PROFILE

Brookfield Investment Management Inc. and Brookfield Investment Management (Canada) Inc., anaffiliate of Brookfield Investment Management Inc. (together, the “Firm”), are the investmentmanager and manager, respectively, of the Brookfield Select Opportunities Income Fund (the “Fund”).Brookfield Investment Management Inc. is an SEC-registered investment adviser and represents thePublic Securities platform of Brookfield Asset Management Inc. ("Brookfield"). The Firm providesglobal listed real assets strategies including real estate equities, infrastructure equities, real assetdebt and diversified real assets. With approximately USD$20 billion of assets under management as ofJune 30, 2018, the Firm manages separate accounts, registered funds and opportunistic strategies forinstitutional and individual clients, including financial institutions, public and private pension plans,insurance companies, endowments and foundations, sovereign wealth funds and high net worthinvestors. The Firm is a wholly owned subsidiary of Brookfield, a leading global alternative assetmanager with more than USD$285 billion of assets under management as of June 30, 2018. For moreinformation, go to www.brookfield.com.

BSO.UN (TSX LISTED) UNIT INFORMATION

Units Outstanding (June 30, 2018) 9,892,284 Units

Targeted Quarterly Distributions: The quarterly distributions are currently targeted tobe $0.15 per Unit ($0.60 per annum representing anannual cash distribution of 6.0% based on the $10.00per Unit issue 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.

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LETTER TO UNITHOLDERS

Dear Unitholders,

We are pleased to provide this Interim Management Report of Fund Performance for the BrookfieldSelect Opportunities Income Fund (the “Fund”) for the six months ended June 30, 2018 (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, 2018, the net asset value per Unit was $4.69 compared to a net asset value per Unit of$5.03 as at December 31, 2017. For the Period, the Fund had a total return of -0.59% including assumedreinvestment of the Fund’s two quarterly distributions to Unitholders during the Period of $0.15 perUnit.

At the end of the Period, the Portfolio's investments in fixed income securities were approximately 37%of holdings with approximately 63% in equities, which was not a material change from positioning as atDecember 31, 2017. The Portfolio’s fixed income investments were primarily in high yield bonds in theinfrastructure, real estate and natural resources sectors. At the end of the period, the Fund’s equityholdings were invested principally in listed infrastructure equities and, to a lesser extent, naturalresources, real estate, and other equities.

Outlook

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

High Yield Corporate Debt: At mid-year, market spreads in the high-yield market were relatively tightfor late-cycle, while investment-grade spreads widened significantly. We continue to believe thatthere is value in the infrastructure debt space. However, in view of heightened competition in theconsumer-facing telecommunications businesses, we favour more pure-play telecommunicationsinfrastructure opportunities, such as towers. We note that many leveraged electrical utility companiesare taking steps to reduce debt which could result in ratings increases, (and possibly higher bondprices). We continue to hold a mixed view toward metals. Trade barriers and underinvestment has ledto higher prices. However, many global producers have emerging market exposure and we note atendency on the part of some host countries to re-negotiate operating agreements to the detriment ofmining companies. Longer term, we believe China will continue retiring capacity for environmentalreasons which will serve to tighten future supply.

Overall we view credit markets cautiously. This has been the second longest expansion in modernhistory. With the Federal Reserve firmly tightening, and the prospects for higher federal governmentdeficits due to recent tax cuts and interest rate increases, we see more and more signs of classiclate-cycle indicators. As such, we believe the portfolio's positioning is an appropriate way to harvestyield without taking undue late-cycle interest rate or credit risk.

Infrastructure Equities: We remain optimistic on the energy infrastructure sector based on a number offactors. We believe volume growth is strong, valuations are compelling and we think capital marketsare rewarding the right projects. Additionally, corporate governance structures are improving and ourconversations with management teams reinforce the notion that the shift toward models that are lessreliant on equity markets to fund growth is taking place.

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Headwinds of higher interest rates (relative to recent history) continue to weigh on utilities in the nearterm. Overall, we maintain our preference for utilities exposed to low-cost renewables generation.Additionally, regulatory risk in California remains a concern and we continue to monitor thedevelopments coming out of the state. Regulatory risk is also a concern among Chinese utilities.

Within transports, traffic growth in Continental Europe and Latin America remains strong as consumerconfidence increases; and real interest rates remain low across the eurozone. We remain cautious onthe political situation in Mexico and the evolving macroeconomic picture in countries like Argentinaand Brazil.

Economic indicators around the globe appear to be generally positive. However, increasing headwindsin the form of global geopolitical uncertainty could slow global growth. As interest rates continue tomove higher, we remain cautious around some sectors within the listed infrastructure universe that aremore sensitive to these moves. As a group, listed infrastructure valuations are currently verycompelling compared to broader equities and we see potential for these stocks to outperform over thelonger term.

Real Estate Equities: After selling off early in the year in response to concerns about higher interestrates, we are encouraged by the turnaround in REIT performance during the second quarter of 2018.The U.S. economy remains healthy as we continue to see jobs growth and improving GDP—both of whichare positive for real estate. The current real estate cycle has had much more limited supply growththan prior cycles, which has helped to keep supply and demand relatively well balanced. We are alsoseeing strong rent growth across a number of property types. The U.S. REIT market on average tradesnear Net Asset Value (NAV), although many individual companies trade at a significant discount to NAV.

We continue to prefer investing in companies with strong balance sheets and have increasingly focusedour portfolio on companies with below average levels of leverage. We believe this is important from aportfolio construction standpoint in the current environment as we believe economic growth may beaccompanied by higher interest rates. We also believe companies with low leverage will perform betterif we experience a down-turn in the current business cycle.

Overall valuation spreads between the cheapest and the most expensive stocks have widenedsignificantly over the last three years, creating attractive relative value opportunities. We believe thisspread will narrow with time and we continue to focus on bottom-up security selection to find the bestrisk-adjusted investment opportunities.

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

Dana Erikson, Managing DirectorOn behalf of the Investment Manager,Brookfield Investment Management Inc.

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MANAGEMENT REPORT OF FUND PERFORMANCE

This Interim Management Report of Fund Performance contains financial highlights but does notcontain the complete interim financial statements of the Brookfield Select Opportunities Income Fund(the “Fund”). The interim financial statements may contain information not included in thismanagement report of fund performance. You can get a copy of the interim financial statements atyour request, and at no cost, by contacting us (see contact information at end of this report) or byvisiting our website at www.brookfield.com or by viewing our filings on SEDAR at www.sedar.com.Unitholders may also contact us to request a free copy of the Fund's proxy voting policies andprocedures, proxy voting disclosure record, or quarterly portfolio disclosure.

This report may contain forward-looking statements. The use of any of the words such as anticipate,may, will, expect, estimate, should, believe and similar expressions are intended to identifyforward-looking statements. Such statements reflect the opinion of Brookfield InvestmentManagement Inc. (“Investment Manager” or “BIM”) regarding factors that might be reasonablyexpected to affect the performance and the distribution on units of the Fund and are based oninformation available at the time of writing. The Investment Manager believes that the expectationsreflected in these forward-looking statements and in this report are reasonable but no assurance canbe given that these expectations or the report will prove to be correct and accordingly, they should notbe unduly relied upon. These statements speak only as at the date of this report. Actual events andoutcomes may differ materially from those described in these forward-looking statements or report.

Unless otherwise indicated, all information is presented as at June 30, 2018, and expressed in Canadiandollars. Index returns are calculated in the currency of the underlying index.

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.Brookfield Investment Management (Canada) Inc. ("BIM Canada") is the manager (the “Manager”) of theFund and BIM is the Investment Manager of the Fund.

RISK

At June 30, 2018, approximately 37% of the Portfolio's invested capital was invested in high yield fixedincome securities and 63% was invested in equity securities. By geography, 58.5% of the portfolio wasinvested in the United States, 32.1% in Canada and 9.4% in Continental Europe, the United Kingdom,and Asia Pacific. The Portfolio holdings are exposed to various risks including risks related to the creditquality of the issuers of the securities, the trading liquidity of the securities and the currency in whichthe securities are denominated. The Fund seeks to minimize the potentially adverse effects of theserisks on the Portfolio’s performance by employing experienced portfolio managers and by continuouslymonitoring the Portfolio’s securities positions and markets.

Currency risk can be mitigated with the use of forward currency contracts which the Fund may use fromtime to time. At the end of the Period, the Portfolio had slightly lower net exposure to foreign currencythan at the end of the prior year. As at June 30, 2018, the Fund’s net exposure to foreign currency was26.04% of Net Assets (December 31, 2017 – 29.93%).

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As at June 30, 2018, 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, 2018, the Fundheld six positions through equity total return swaps representing $7.7 million of exposure (as atDecember 31, 2017, the Fund held six positions through equity total return swaps representing$8.9 million of exposure). As at June 30, 2018, the Fund also had US$17.5 million (December 31, 2017- US$17.5 million) of net forward currency contracts in place to protect against a strengthening in theCanadian dollar against the U.S. dollar.

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 $46.4 million as at June 30, 2018, a decrease of $3.3 million from$49.7 million as at December 31, 2017. The decrease in net asset value was largely comprised of theoperating loss of $0.4 million and $2.9 million paid in distributions to Unitholders.

As at June 30, 2018, the net asset value (“NAV”) per Unit was $4.69 compared to $5.03 as atDecember 31, 2017. For the Period, the Fund had a total return of -0.59% including assumedreinvestment of the Fund's two quarterly distributions to Unitholders during the Period of $0.15 perUnit.

Overall, the Fund's bond portfolio contributed positively to overall returns. Within the bond portfolio,portfolio holdings in Energy Transportation and Distribution ("T&D"), Health Facilities, and Metals &Mining contributed to performance. The bulk of the Energy T&D bonds are concentrated in midstreamdistribution and processing which benefited from higher energy prices and production out of theirrespective basins. Bond laggards were in the Construction and Building Materials, Real EstateOwnership & Development, and Energy Exploration & Production sectors. The Fund maintained arelatively low level of leverage, ending the six months at 10.8%, in anticipation of potentially bettervaluations in the high yield market.

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, 2018, the Fund had employedleverage equal to 10.8% (as at December 31, 2017 – 11.7%) of the total net assets of the Fund, whichequates to $5.0 million (December 31, 2017 – $5.8 million). The minimum and maximum amount ofborrowings outstanding during the Period were $3.6 million and $6.9 million, respectively. Theminimum and maximum amount of borrowings outstanding during the year ended December 31, 2017were $0.0 and $13.5 million, respectively. The borrowings were used to grow the Fund’s investmentsand for working capital needs. Adding a controlled amount of leverage to the Fund is consistent withthe Fund’s objectives.

RECENT DEVELOPMENTS

Subsequent to June 30, 2018, the Fund received tenders for the redemption of 2,759,580 units of theFund in connection with the Fund's annual redemption. Of the 2,759,580 units tendered forredemption, 410,241 units were tendered by BIM Canada. The redemption proceeds were paid in earlyAugust 2018.

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Other than the aforementioned events, there have been no recent developments in the market,outlook or operations of the Fund that represent a material change for investors.

RELATED PARTY TRANSACTIONS

The Manager and Investment Manager are wholly owned subsidiaries of Brookfield AssetManagement Inc. (“Brookfield”). BIM manages the investment and trading activities of the Fundpursuant to a portfolio management agreement. Prior to July 6, 2017, BIM Canada managed theinvestment trading activities of the Fund. 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, are relatedparties 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 six months ended June 30, 2018, BIM Canada increased its ownership by 24,237 Units of theFund.

As at June 30, 2018, Brookfield and its affiliates owned a 6.9% (December 31, 2017 - 6.7%) interest inthe Fund.

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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:

For the six

months ended For the twelve months ended

Period from

May 23, 2014

Net asset value per Unit(1)June 30,

2018

December 31,

2017

December 31,

2016

December 31,

2015

to December 31,

2014(2)

Net assets, beginning of period $5.03 $6.06 $5.06 $7.64 $9.43(3)

Increase (decrease) from operationsTotal revenue 0.13 0.36 0.37 0.77 0.44Total expenses (0.05) (0.09) (0.09) (0.11) (0.11)Realized gains (losses) for the period (0.11) 0.08 (2.14) (1.73) (0.33)Unrealized gains (losses) for the period (0.01) (0.83) 3.36 (0.91) (1.49)

Total increase (decrease) from operations(4) (0.04) (0.48) 1.50 (1.98) (1.49)Distributions

Due to net investment income (0.30) - - - -Due to capital gains - - - - (0.24)Due to return of capital - (0.60) (0.60) (0.60) (0.06)

Total distributions(5) (0.30) (0.60) (0.60) (0.60) (0.30)Net assets attributable to holders of

redeemable units per unit, end of period(6) $4.69 $5.03 $6.06 $5.06 $7.64Notes:(1) This information is derived from the Fund's financial statements as at June 30 and December 31 of the stated year. The

2018, 2017, 2016, 2015, and 2014 information was prepared in accordance with IFRS.(2) The Fund commenced investment operations on May 23, 2014.(3) Reflects the issue price of $10.00 less share issue expenses of $0.57 per Unit.(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 Unitamounts.

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

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

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For the six

months ended For the twelve months ended

Period from

May 23, 2014

Ratios and Supplemental Data

June 30,

2018

December 31,

2017

December 31,

2016

December 31,

2015

to December 31,

2014(1)

Total net asset value $46,427,630 $49,730,651 $72,495,200 $97,168,449 $146,619,401Number of Units outstanding 9,892,284 9,880,203 11,962,684 19,197,900 19,200,000Management expense ratio(2) 1.88% 1.61% 1.71% 1.47% 1.66%Management expense ratio before waivers and

absorptions(2) 1.88% 1.61% 1.71% 1.47% 1.66%Trading expense ratio(3) 0.00% 0.10% 0.09% 0.06% 0.26%Portfolio turnover rate(4) 7.67% 60.24% 60.24% 36.88% 22.32%Net asset value per Unit $4.69 $5.03 $6.06 $5.06 $7.64Closing market price $4.60 $5.03 $5.94 $4.73 $7.04Notes:(1) The Fund commenced investment operations on May 23, 2014.(2) Management expense ratio (“MER”) is based on total expenses (excluding distributions, commissions and other portfolio

transaction costs but including interest expense) for the stated period, and is expressed as an annualized percentage ofdaily average net asset value during the Period.

(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 turn-over 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 is responsible for providing or arranging for all investment advisory and managementservices required by the Fund including, without limitation, managing in a manner consistent with theinvestment objectives, guidelines and restrictions of the Fund and for arranging for the execution of alltransactions. The Manager is also responsible for the operational and administrative functions of theFund.

An annual management fee equal to 1.25% per annum of the NAV of the Fund, calculated daily andpayable monthly in arrears plus applicable taxes, is paid to the Manager. The management fee totaled$330,800 and $485,913 for the Fund for the six months ended June 30, 2018 and June 30, 2017,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, 2018 and June 30, 2017,respectively.

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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 past performance of the Fund does not necessarilyindicate how it will perform in the future.

Year-by-Year Returns

The bar chart below shows the Fund's performance for the periods stated. The bar chart shows, inpercentage terms, how much an investment made on the first day of the period would have increasedor decreased by the last day of such period.

-16.08%

-27.54%

33.75%

-7.00%

-0.59%

-35.00%

-25.00%

-15.00%

-5.00%

5.00%

15.00%

25.00%

35.00%

2014(1) 2015(2) 2016(2) 2017(2) 2018(3)(1) Represents the period from May 23, 2014 (the inception date) to December 31, 2014.(2) Represents the twelve month period ended December 31 of the stated year.(3) Represents the six month period ended June 30 of the stated year.

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SUMMARY OF INVESTMENT PORTFOLIO

The following is a summary of the Fund as at June 30, 2018. This is a summary only and will change dueto ongoing portfolio transactions of the Fund. Quarterly updates will be posted towww.brookfield.com.

As at June 30, 2018Top 25 Positions

% of Net Asset Valueof the Fund

TORC Oil & Gas Ltd. Equity 8.13Whitecap Resources Inc. Equity 6.50Pembina Pipeline Corp. Equity 5.32Cash and cash equivalents 5.15PNC Financial Services Group Inc Equity 5.06Vermilion Energy Inc. Equity 4.65MEG Energy Corp. Bonds 4.54Enterprise Products Partners Equity Total Return Swap 4.50National Grid PLC Equity 4.33Energy Transfer Partners LP Equity Total Return Swap 4.19TransCanada Corp. Equity 3.74Williams Cos Inc. Equity 3.58Sanchez Energy Corp. Bonds 3.40Kindred Healthcare Inc. Bonds 3.11Simon Property Group Inc. Equity 3.03MPLX LP Equity Total Return Swap 2.86EPIC Y-Grade Services LP Term Loan 2.79Ferrovial SA Equity 2.76Kinder Morgan Canada Ltd. Equity 2.69CSC Holdings LLC Bonds 2.68Crestwood Holdings LLC Term Loan 2.53Tanger Factory Outlet Centers Inc. Equity 2.52Genesis Energy LP Bond 2.39Pattern Energy Group Inc. Equity 2.38INEOS Group Holdings SA Equity 2.38Total 95.21

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As at June 30, 2018 % of Net Asset ValueSector Allocation of the Fund

Infrastructure 61.32Natural Resources 36.35Real Estate 13.43Other 5.06Cash and Cash Equivalents 5.15Other Liabilities and Accrued Investment Income (4.61)Total (1) 116.70

(1) The Fund has notional exposure resulting from derivatives (excluding derivativesused for purposes of hedging) representing 16.70% of Net Asset Value. The tableincludes this notional value of derivatives and therefore does not sum to 100% of theNet Asset Value.

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FUND INFORMATION

MANAGER AND TRUSTEE

Brookfield Investment Management(Canada) Inc.

David LeviDirector, President & Chief Executive Officer

Gail CecilDirector

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.

Investment Manager

Brookfield Investment Management Inc.Brookfield Place250 Vesey Street, 15th FloorNew York, New York10281-1023t. 855.777.8001w. www.brookfield.com

Transfer Agent and Registrar

Unitholder inquiries relating to distributions,address changes and Unitholder accountinformation should be directed to the Fund’sTransfer Agent:Computershare Trust Company of Canada100 University Avenue, 8th FloorToronto, ON M5J 2Y1, Canadat. 1-800-564-6253 (U.S. & Canada)t. 1-514-982-7555 (International)f. 1-888-453-0330w. www.computershare.com

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