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‘Hidden Dragons’ in Asia-Pacific Demographics and Their Impacts on Real Estate

BROOKFIELD PUBLIC SECURITIES GROUPi | 1Q 2019

While historical demographics have been a significant tailwind across many markets, there are several “hidden dragons” in the way demographic trends are changing across the Asia-Pacific region. We believe that these changes will have wide-ranging investment implications for investments in real estate and beyond.

1

D E M O G R A P H I C T R E N D S I N C H I N A , J A PA N , S I N G A P O R E A N D A U S T R A L I A : T H E L A S T 15 Y E A R S V S . T H E N E X T 15 Y E A R SOver the last 15 years, much of the Asia-Pacific region has been in the midst of a population boom. In particular, China, Singapore and Australia have seen their populations grow significantly, which has had positive effects on the economies of each of these countries. Japan is the exception, with an already shrinking population and weak economic growth.

There are unique demographic factors at work in each country, which we will explore in more detail. These factors are leading to significant changes in the demographics that we expect to see over the next 15 years for each of these countries (Exhibits 1,2).

■ China’s demographic trends are expected to be similarly challenging relative to recent demographic trends in Japan, as the general population gets older while the working-age population decreases.

■ Japan will still contend with an aging and shrinking population, but we expect recent changes in immigration policies will lessen the impact.

■ Singapore is also faced with a rapidly aging population. But we believe the government will increase future immigration, particularly of higher skilled workers.

■ Australia is expected to see its population age rise modestly while continuing to see strong population growth.

E X H I B I T 1 : A R I S I N G M E D I A N A G E A C R O S S T H E R E G I O N Median Age

30

35

40

45

50

55

2000 2005 2010 2015 2020 2025Year

2030 2035 2040 2045 2050

2018JapanSingapore

China

AustraliaAge

* We added 200,000 of additional immigration per year to the Japanese forecasts, as we believe there has been a significant and sustainable change in immigration policy. Reflects the most recent data available. Source: United Nations World Population Prospects. Published June 21, 2017.

Reflects the most recent data available. Source: United Nations World Population Prospects. Published June 21, 2017.

E X H I B I T 2 : T H E G R O W T H O F T H E W O R K I N G - A G E P O P U L A T I O N I S A T A N I N F L E C T I O N P O I N T (Working-Age)

CHINA8.9% GrowthLast 15 Years

-5.9% GrowthNext 15 Years

JAPAN + 200K NET IMMIGRATION*-11.9% Growth

Last 15 Years


SINGAPORE35.3% Growth

Last 15 Years


AUSTRALIA22.0% Growth

Last 15 Years

11.8% GrowthNext 15 Years

700750800850900950

1,0001,050

‘03 ‘06 ‘09 ‘12 ‘15 ‘18Year

‘21 ‘24 ‘27 ‘30 ‘33

Mill

ions

505560657075808590

‘03 ‘06 ‘09 ‘12 ‘15 ‘18Year

‘21 ‘24 ‘27 ‘30 ‘33

Mill

ions

1

2

3

45

‘03 ‘06 ‘09 ‘12 ‘15 ‘18Year

‘21 ‘24 ‘27 ‘30 ‘33

Mill

ions

79

111315171921

‘03 ‘06 ‘09 ‘12 ‘15 ‘18Year

‘21 ‘24 ‘27 ‘30 ‘33

Mill

ions

CHINA8.9% GrowthLast 15 Years


JAPAN + 200K NET IMMIGRATION*-11.9% Growth

Last 15 Years


SINGAPORE35.3% Growth

Last 15 Years


AUSTRALIA22.0% Growth

Last 15 Years

11.8% GrowthNext 15 Years

700750800850900950

1,0001,050

‘03 ‘06 ‘09 ‘12 ‘15 ‘18Year

‘21 ‘24 ‘27 ‘30 ‘33

Mill

ions

505560657075808590

‘03 ‘06 ‘09 ‘12 ‘15 ‘18Year

‘21 ‘24 ‘27 ‘30 ‘33

Mill

ions

1

2

3

45

‘03 ‘06 ‘09 ‘12 ‘15 ‘18Year

‘21 ‘24 ‘27 ‘30 ‘33

Mill

ions

79

111315171921

‘03 ‘06 ‘09 ‘12 ‘15 ‘18Year

‘21 ‘24 ‘27 ‘30 ‘33

Mill

ions

CHINA'S DEMOGRAPHICS FOR THE NEXT 15 YEARS LOOK VERY SIMILAR TO THOSE IN JAPAN.

'HIDDEN DRAGONS' IN ASIA-PACIFIC DEMOGRAPHICS AND THEIR IMPACTS ON REAL ESTATE 2

China

Over the last 15 years, China has seen rapid economic growth fueled by strong demographic trends, urbanization and a supportive pro-business operating environment. Many of these tailwinds are dying down as the pace of urbanization slows; the population is not only aging overall, but the working-age population is expected to meaningfully decline.

China’s population decline is the result of the falling fertility rate (Exhibit 3), which dropped below the replacement rate (2.1 children per woman) in 1990. Even after the end to the One-Child policy in 2015 there has been virtually no recovery in the nation’s fertility rate. Cultural preferences and the effects of the One-Child Policy have led to 52 million more men than women (Exhibit 4) – almost one and a half times the population of Canada. Simply put, there are fewer women having fewer children.

S L O W I N G U R B A N I Z A T I O N A N D A D E C L I N I N G P O P U L A T I O N , A S C H I N A S H I F T S F R O M A N I N D U S T R I A L T O A S E R V I C E - B A S E D E C O N O M Y

China has seen massive amounts of urbanization since the late 1980s (Exhibit 5). While there may be some urbanization to come, most of it is behind us. China is also shifting away from an industrial economy toward a service-based economy (Exhibit 6) that can support its rising standard of living. At the same time, manufacturing in China is falling as wages have risen versus other manufacturing-heavy economies, making China less attractive as a source of cheap labor (Exhibit 7).

1990 2000 20172010

2.5

2.0

1.5

1.0 1.2432017

1.2952016

Aver

age

birt

hs p

er w

oman

1980 1990 2000 2005 2006 2007 2008 2009 2011 2020

8

7

5

6

4

Hun

dred

s of

Mill

ions

52Million

7.207.00

6.686.48

2011 Chinese population

3.8% gap 3.8% gap

3.2% gap5.07

4.76 48.1%FEMALE

51.9%MALE

‘70 ‘74 ‘78 ‘82 ‘86 ‘90 ‘94 ‘98 ‘02 ‘06 ‘10 ‘14 ‘18

1987 = 25%

2018 = 60%

10%

25%

35%

45%

55%

65%

5

15

25

35

45

55

‘78 ‘82 ‘86 ‘90 ‘94 ‘98 ‘02 ‘06 ‘10 ‘14 ‘18

GD

P Co

mpo

sitio

n (%

)

Services

Industrial

Agriculture

E X H I B I T 3 : T H E F A L L I N G F E R T I L I T Y R A T E Current Chinese Fertility Rate

E X H I B I T 5 : R A P I D U R B A N I Z AT I O N National Urbanization Rate

E X H I B I T 6 : M O V I N G T O A S E R V I C E S - B A S E D E CO N O M Y GDP Composition (%)

E X H I B I T 4 : T H E G E N D E R G U L F Chinese Population by Gender

As of December 31, 2017. Reflects most recent data available. Source: China National Bureau of Statistics.

As of December 31, 2017. Reflects most recent data available. Source: China National Bureau of Statistics.

As of December 31, 2018. Source: United Nations Development Program; Economist Intelligence Unit; China National Bureau of Statistics.

As of December 31, 2017. Reflects most recent data available. Source: United Nations Development Program; Economist Intelligence Unit; China National Bureau of Statistics.


E X H I B I T 8 : I M P L I C AT I O N S F O R R E A L E S TAT E I N C H I N A

China continuation from previous page

Source: Brookfield. See Important Disclosures at the end of this report.

TREND IMPLICATION

China is at an inflection point for urbanization and population growth.

Lower demand growth should decrease rental growth rates to be more in line with the rate of inflation. Lower nominal interest rates should benefit commercial assets, but this seems to be reflected in current cap rates.

Labor is transitioning from manufacturing to service-based industries.

This should favor tier-1 cities (Shanghai, Beijing, Shenzhen); manufacturing demand is shifting to other Southeast Asian countries.

Family structures are changing, along with a rapidly aging population.

This should increase demand for smaller apartments in urban areas and professional senior care.

700

900800

400

600500

1000

300200

‘16‘14‘10‘06‘02‘98‘94‘90

China

MexicoThailand

VietnamIndonesia

Nom

inal

USD

E X H I B I T 7 : W A G E S R I S I N G V S . O T H E R M A N U F A C T U R I N G - H E AV Y E CO N O M I E S Average Monthly Wages

As of December 31, 2016. Reflects most recent data available. Source: China’s Economic Rise: History, Trends, Challenges, and Implications for the United States. Published by the Congressional Research Service. February 5, 2018.

DEMOGRAPHIC TAIL WINDS FOR THE ECONOMY ARE EXPECTED TO TURN TO HEADWINDS.

Trends related to urbanization, population growth and an aging population are intersecting with China’s rise of a service-based economy, and we expect this to drive meaningful shifts in the investment opportunities for real estate.


Japan

Perhaps the trend that will have the most long-lasting effect is the quiet reversal occurring in Japan’s immigration policy as the government looks to address Japan's labor needs. It is still difficult for a foreigner to acquire permanent Japanese citizenship, but the government has loosened the rules for working in Japan and the number of foreign residents has increased at a rapid pace (Exhibit 9). In December 2018, the Japanese Parliament approved a bill that would create two new categories of visas for foreign workers that are expected to bring in an additional 345,000 workers over the next five years.ii

J A P A N E S E L A B O R F O R C E P A R T I C I P A T I O N F A C T O R S A R E C H A N G I N G , C R E A T I N G A T I G H T J O B M A R K E T

Shifting cultural norms in Japan's workforce relating to retirement and the role of women, along with immigration trends, have led to meaningful changes in the labor force. Today, people are staying in the workforce longer, while participation from women and foreign workers is on the rise (Exhibit 10). These previously underutilized sources of labor have pushed Japan’s labor force participation rate to the highest level on record (~79%)iii. This higher participation rate has been particularly positive for office demand.

H I S T O R I C A L I M M I G R A T I O N P O L I C I E S A R E C H A N G I N G T O A D D R E S S L A B O R S H O R T A G E S

-50

0

50

100

150

200

‘79

‘81

‘83

‘85

‘87

‘89

‘91

‘93

‘95

‘97

‘99

‘01

‘03

‘05

‘07

‘09

‘11

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‘15

‘17

Thou

sand

s

2012 2013 2014 2015 2016 2017

Mill

ion

-0.5

0.5

0.0

2.0

1.5

1.0

65 and over

Women 25-54

Foreign WorkersMen 25-54

E X H I B I T 9 : F O R E I G N R E S I D E N T S A R E I N C R E A S I N G Year-Over-Year Change in Foreign Residents

E X H I B I T 1 0 : L A B O R F O R C E PA R T I C I PAT I O N I S I N C R E A S I N G Sources of Employment Growth

As of December 31, 2017. Reflects most recent data available. Source: Japan Ministry of Justice.

Source: “How Aging Japan Defied Demographics and Revived Its Economy”; Greg Ip, The Wall Street Journal, January 11, 2019.

W E E X P E C T T H E T I G H T J O B M A R K E T W I L L C R E AT E W A G E P R E S S U R E S A N D I N F L AT I O N E X P E C TAT I O N S W I L L I N C R E A S EDespite the increase in labor participation, the job market in Japan remains tight with unemployment near a 25-year low; however, wage growth is still near 0% (Exhibit 11). We would expect wage growth to rise as it has historically done in tight labor markets, and in response, we would expect inflation expectations to rise from currently ~0%. (Exhibit 12).


The implications for real estate investment in Japan are being impacted by the crosscurrents of rising immigration in a tight labor market and an aging population.

TREND IMPLICATION

Increased immigration has lessened the negative impact of Japan’s population decline, while urbanization is driving better demographics for urban areas than for the country overall.

Real rents in urban areas should be stable rather than declining, with compact urban units benefiting the most.

A tight labor market will create wage pressure. Inflation should be higher than the current expectation of 0%.

The continued aging will put pressure on the population.

This should significantly increase demand for health care and assisted living real estate.

Japan continuation from previous page

WHAT IMPACT WILL RISING INFLATION EXPECTATIONS HAVE ON VARIOUS ASSET CLASSES IN JAPAN?

0.0

0.5

1.0

1.5

2.0

2.5

3.0

-505

10

2025

15

30

‘71 ‘82 ‘84 ‘86 ‘88 ‘90‘78 ‘80‘76‘74 ‘92 ‘94 ‘96 ‘98 ‘00 ‘02 ‘04 ‘06 ‘08 ‘10 ‘12 ‘14 ‘16 ‘18

Ratio

YoY

Wag

e G

row

th (%

)

New jobopenings to applicantsratio

Active job openings to applicants ratio

Wage Growth

Infla

tion

Rate

(%)

-1.5Mar 07 Feb 09 Feb 11 Feb 13 Feb 15 Feb 17 Feb 19

-1.0-0.50.00.51.01.52.0

E X H I B I T 1 1 : S O F A R , N O W A G E G R O W T H , D E S P I T E T I G H T J O B M A R K E T Active Job Openings to Applicant Ratio & Wage Growth

E X H I B I T 1 2 : I N F L A T I O N E X P E C T A T I O N S S T I L L M U T E D , B U T W E E X P E C T I T T O R I S E Current Inf lation Rate (%)

Source: “Biting the bullet: The implications of an increase in foreign workers in Japan”; Mistubishi UFJ Morgan Stanley, June 28, 2018.

As of February 28, 2019. Source: Bloomberg. Shows the JPY Inflation Swap Forward 5Y5Y.

E X H I B I T 13 : I M P L I C AT I O N S F O R R E A L E S TAT E I N J A PA N



Singapore

Singapore’s high population growth over the past 15 years was largely the result of accommodative immigration policies. However, the growth in Singapore’s public services and infrastructure did not keep pace with the level of immigration. Over the past five years the government significantly curtailed the flow of immigration to let the infrastructure improvements "catch up."

As a result, the country experienced little net foreign migration in recent years (Exhibit 14). Today, immigration policy is focused on “higher-quality” workers (Exhibit 15), as the government works to transition to a service-based and technology-centered economy. At the same time, the government’s current infrastructure plans are tailored for a significantly larger population by 2030. This suggests a more open immigration policy in the coming years, which should improve the outlook for the region’s demographic composition.

A S S IN G A P O R E LO O K S TO T R A N S IT IO N TO A T EC H N O LO G Y- F O C U S E D ECO N O M Y, T H E D E M A N D F O R S K I L L E D F O R E IG N W O R K E R S I S IN C R E A S IN G

In order to plan for a larger Singapore while retaining affordable business environments, the government is planning for additional commercial nodes away from the Central Area (or City Centre). The government is expanding the railway system as well as building out suburban commercial and business districts (Exhibit 16).

160

120

80

40

0

-40‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘12‘11‘10 ‘13 ‘14 ‘15 ‘16 ‘17

LITTLE foreign net migration in the last 5 years

0%10%20%30%40%50%60%70%

‘07 ‘09 ‘11 ‘13 ‘15 ‘17 ‘19 ‘21 ‘23 ‘25 ‘27 ‘29

% of EP & SP holders over total non-resident labour force% of WP holders over total non-resident labour force (ex FDW)

Current

Basic Skills

Professional

E X H I B I T 1 4 : N O N - R E S I D E N T F O R E I G N L A B O R F O R C E H A S B E E N D E C L I N I N G Net Change in Non-Resident Labor Force

E X H I B I T 1 5 : N U M B E R O F ' H I G H E R - Q U A L I T Y ' F O R E I G N W O R K E R S E X P E C T E D T O I N C R E A S E Proportion of Quality Foreign Workers Improving

Source: “Immigration policy: Time to recalibrate”, Bank of America Merrill Lynch, May 3, 2018.

Source: “Immigration policy: Time to recalibrate”, Bank of America Merrill Lynch, May 3, 2018.


E X H I B I T 17 : I M P L I C AT I O N S F O R R E A L E S TAT E I N S I N G A P O R E


TREND IMPLICATION There is the potential for immigration- friendly policy shifts and a higher-quality labor force composition.

These factors are expected to drive higher demand for private homes.

There is a sustained economic shift from manufacturing to a service-based and technology-centered economy.

The economic shift should be negative for the industrial sector, while positive for the office sector.

The government is focusing on decentralizing the Island’s economic activity away from the Central Area (or City Centre).

Decentralizing should be positive for suburban retail and offices.

E X H I B I T 16 : S I N G A P O R E – P O L I C Y C H A N G E A N D P R E PA R AT I O N F O R G R O W T H New Rail Lines by 2030

WHAT ARE THE IMPACTS TO REAL ESTATE IF SINGAPORE BECOMES THE REGIONAL HUB IN FINANCE AND TECHNOLOGY?

Existing Rail LinesNew Rail Lines by 2021New Rail Lines by 2030

Source: Land Transport Authority SG (February 2013).

Real estate investment in Singapore is undergoing changes as the government is focusing on "higher-quality" workers as it looks to transition to a sservices and information technology-focused economy, as well as undertaking decentralization away from the Central Area (or City Centre).

Signapore continuation from previous page


Australia

Immigration to Australia has been the driving force of population growth over the last 15 years. The vast majority of those immigrants have settled in either Melbourne (Victoria) or Sydney (New South Wales) (Exhibit 18). There have also been significant capital flows into Australian commercial properties. Notably, we have seen large flows into office properties (Exhibit 19) from Asian investors in more expensive markets, as well as from investors across the globe. We expect a continued flow of people and money into Australia, and we believe the underlying demographics to be strong, particularly for Melbourne and Sydney.

AU S T R A L I A H A S S E E N L A R G E IN F LU X E S O F P EO P L E A N D C A PITA L , W E E X P EC T T H E S E T R E N D S TO CO N T IN U E

We expect that the strong recent capital flows from Asian and global investors, coupled with continued immigration, will provide attractive investment opportunities for real estate investment in Australia.

E X H I B I T 2 0 : I M P L I C AT I O N S F O R R E A L E S TAT E I N A U S T R A L I A

0

50

100

150

200

250

300

350

‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17

Thou

sand

s

NSW + VIC All Other Average

215.4KAverage 74%

New SouthWales(NSW) +Victoria(VIC)

0

4

8

12

16

20

‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18

$ Bi

llion

s

Offshore Domestic

$19.5B

48%Offshore

E X H I B I T 1 8 : C O N S I S T E N T L E V E L S O F I M M I G R A T I O N ; V A S T M A J O R I T Y T O S Y D N E Y & M E L B O U R N E Australia Net Immigration

E X H I B I T 1 9 : S T R O N G O F F I C E T R A N S A C T I O N V O L U M E S Australia Off ice Transaction Volumes

As of December 31, 2018. Source: Australian Office Investment: Review & Outlook 2019, JLL.


As of December 31, 2018. Source: Australian Office Investment: Review & Outlook 2019, JLL.

TREND IMPLICATION

The current immigration and population growth trends are expected to continue.

These trends should continue to drive positive real demand growth.

A large portion of the immigrant population will continue to settle in Sydney and Melbourne.

Demand growth is expected to rise in Sydney and Melbourne, which will be positive for REITs with heavy weightings in these markets.

The recent strong capital flows from Asian and global investors to Australian real estate is expected to continue.

This should place continued downward pressure on cap rates.

CONTINUED STRONG POPULATION GROWTH WILL SET AUSTRALIA'S GROWTH PROSPECTS APART FROM MOST OTHER DEVELOPED COUNTRIES.


In summary, Chinese demographics are structurally set to materially worsen from here, and even the abolishment of the One-Child Policy has had no positive impact. Demographics will continue to be challenging in Japan, but we expect them to be incrementally better due to the government’s proactive work in improving labor participation and initiating what we believe is as a monumental shift in immigration policy. Major cities like Tokyo and Osaka will experience better demographic trends. The government of Singapore will continue its ambitious planning by mapping out significant infrastructure expansion to prepare for future population growth. We believe a loosening of immigration policies will follow in the coming years, likely with a continued focus on higher-skilled workers. We expect Australia will continue to have strong demographics due to continued immigration. Sydney and Melbourne are expected to be the future beneficiaries. We will continue to focus on how shifting demographic trends will change local real estate fundamentals and we will factor them into our bottom-up models as we seek to uncover the best risk-adjusted returns for our clients.

Our Closing Perspective: The ‘Hidden-Dragons’ Across Asia-Pacific


I M P O R T A N T D I S C L O S U R E SMust be preceded or accompanied by a current prospectus if used in connection with a Brookfield mutual fund purchase. You can obtain a prospectus for a Brookfield mutual fund by calling 1-855-777-8001 or visiting our website www.Brookfield.com

Mutual fund investing involves risk. Principal loss is possible. Below are real estate related risk disclosures that apply to Brookfield real estate mutual funds. Property values may fall due to increasing vacancies or declining rents resulting from unanticipated economic, legal, cultural or technological developments. REITs are dependent upon management skills and generally may not be diversified. REITs are subject to heavy cash flow dependency, defaults by borrowers and self-liquidation. A fund may invest in small and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility. A fund may invest in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Investing in emerging markets may entail special risks relating to potential economic, political or social instability and the risks of nationalization, confiscation or the imposition of restrictions on foreign investment. Debt securities rated below investment grade are commonly referred to as "junk bonds" and are considered speculative. Increases in interest rates can cause the prices of fixed income securities to decline, and the level of current income from a portfolio of fixed income securities may decline in certain interest rate environments. Investment by a fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Some securities held may be difficult to sell, particularly during times of market turmoil. If a fund is forced to sell an illiquid asset to meet redemption, the fund may be forced to sell at a loss. Using derivatives exposes a fund to additional risks, may increase the volatility of a fund's net asset value and may not provide the result intended. Since a fund will invest more than 25% of its total assets in securities in the real estate industry, a fund may be subject to greater volatility than a fund that is more broadly diversified. Past performance is no guarantee of future results. Brookfield Public Securities Group LLC (“PSG” or “the Firm”) prior to January 4, 2019 known as Brookfield Investment Management Inc., is an SEC-registered investment adviser and represents the Public Securities Group of Brookfield Asset Management Inc., providing global listed real assets strategies including real estate equities, infrastructure equities, multi-strategy real asset solutions and real asset debt. PSG manages separate accounts, registered funds and opportunistic strategies for institutional and individual clients, including financial institutions, public and private pension plans, insurance companies, endowments and foundations, sovereign wealth funds and high net worth investors. PSG is an indirect, wholly-owned subsidiary of Brookfield Asset Management, Inc., a leading global alternative asset manager with approximately $350 billion of assets under management as of December 31, 2018. PSG manages approximately $18 billion of assets as of January 31, 2019.The information in this presentation is not intended as investment advice, an indication of trading intent or holdings or the prediction of investment performance. Views and information expressed herein are subject to change at any time. Brookfield Public Securities Group LLC disclaims any responsibility to update such views and/or information. This information is deemed to be from reliable sources; however, Brookfield Public Securities Group LLC does not warrant its completeness or accuracy. This presentation is not intended to, and does not constitute an offer or solicitation to sell or a solicitation of an offer to buy any security, product, investment advice or service (nor shall any security, product, investment advice or service be offered or sold) in any jurisdiction in which Brookfield Public Securities Group LLC is not licensed to conduct business, and/or an offer, solicitation, purchase or sale would be unavailable or unlawful.Opinions expressed herein are current opinions of Brookfield Public Securities Group LLC, including its subsidiaries and affiliates, and are subject to change without notice. Brookfield Public Securities Group

LLC, including its subsidiaries and affiliates, assume no responsibility to update such information or to notify client of any changes. Any outlooks, forecasts or portfolio weightings presented herein are as of the date appearing on this material only and are also subject to change without notice.

Dan C. Tutcher, a portfolio manager of the Fund, presently serves on the board of Enbridge, Inc. The Fund may from time to time invest in Enbridge and its affiliates (the “Enbridge Companies”). The Fund’s Adviser has adopted policies and procedures to address potential conflicts of interest while allowing the Adviser to continue to invest in Enbridge Companies. However, from time to time, the Adviser may restrict trading from time to time, which may prevent the Fund from acquiring or disposing of securities of Enbridge Companies at a favorable time.

Past performance is not indicative of future performance.

F O R W A R D L O O K I N G S T A T E M E N T SInformation herein contains, includes or is based upon forward-looking statements within the meaning of the federal securities laws, specifically Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements, other than statements of historical fact, that address future activities, events, or developments, including without limitation, business or investment strategy or measures to implement strategy, competitive strengths, goals, expansion and growth of our business, plans, prospects and references to our future success. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” and other similar words are intended to identify these forward-looking statements. Forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results or outcomes. Consequently, no forward-looking statement can be guaranteed. Our actual results or outcomes may vary materially. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

D E F I N I T I O N SJPY Inflation Swap Forward 5Y5Y is a 5-year, 5-year Japanese Yen inflation swap rate. This rate is a common measure, which is used by central banks and dealers to look at the market's future inflation expectations.

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indirect, wholly owned subsidiary of Brookfield Asset Management.

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