soditic funds plc - brookfield/media/files/b... · 2017-04-28 · brookfield investment funds...
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BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
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TABLE OF CONTENTS
Page
Directors and Other Information 2
Directors’ Report and Statement of Directors’ Responsibilities 3 – 6
Report of the Depositary to the Shareholders 7
Investment Manager Report 8 – 18
Independent Auditor’s Report 19 – 20
Statements of Financial Position 21 – 26
Statements of Comprehensive Income 27 – 29
Statements of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares 30 – 32
Statements of Cash Flows 33 – 38
Notes to the Financial Statements 39 – 68
Brookfield Global Listed Infrastructure UCITS Fund
Schedule of Investments 69 – 73
Schedule of Significant Portfolio Changes (unaudited) 74 – 75
Brookfield Global Listed Real Estate UCITS Fund
Schedule of Investments 76 – 79
Schedule of Significant Portfolio Changes (unaudited) 80 – 81
Brookfield US Listed Real Estate UCITS Fund
Schedule of Investments 82 – 83
Schedule of Significant Portfolio Changes (unaudited) 84 – 85
Brookfield Global Listed Infrastructure Long Short UCITS Fund
Schedule of Investments 86 – 88
Schedule of Significant Portfolio Changes (unaudited) 89 – 90
Brookfield Real Assets Securities UCITS Fund
Schedule of Investments 91 – 102
Schedule of Significant Portfolio Changes (unaudited) 103 – 104
Appendix 105 – 106
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
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DIRECTORS AND OTHER INFORMATION
Directors Heather Goldman (American)*** Jonathan Crile Tyras (American)* Máire O’Connor (Irish)** Des Quigley (Irish)**
Registered Office RBC Investor Services Ireland Limited, 4
th Floor
One George’s Quay Plaza George’s Quay Dublin 2 Ireland
Investment Manager Brookfield Investment Management Inc. Brookfield Place 250 Vesey Street, 15
th Floor
New York, NY 10281-1023 U.S.A.
Depositary RBC Investor Services S.A. Dublin Branch 4
th Floor
One George’s Quay Plaza George’s Quay Dublin 2 Ireland
Company Secretary Chartered Corporate Services 4
th Floor
76 Baggot Street Lower Dublin 2 Ireland
Administrator and Transfer Agent RBC Investor Services Ireland Limited, 4
th Floor
One George’s Quay Plaza George’s Quay Dublin 2 Ireland
Independent Auditor Deloitte Chartered Accountants and Statutory Audit Firm Deloitte & Touche House Earlsfort Terrace Dublin 2 Ireland
Legal Advisers McCann FitzGerald Riverside One Sir John Rogerson’s Quay Dublin 2 Ireland
* Non-Executive Director ** Non-Executive and Independent Director *** After 22 March 2016, Ms. Goldman is a Non-Executive and Independent Director
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
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DIRECTORS’ REPORT AND STATEMENT OF DIRECTORS’ RESPONSIBILITIES FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 The Board of Directors (the “Board”) present the Annual Report including the audited financial statements of Brookfield Investment Funds (UCITS) plc (the “Company”) for the financial year ended 31 December 2016. Statement of Directors’ Responsibilities The Directors are responsible for preparing the Directors’ Report and the financial statements in accordance with the Companies Act 2014 and applicable standards. Irish company law requires the Directors to prepare financial statements for each financial year. Under the law, the Directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS). Under Company Law, the Directors must not approve the financial statements unless they are satisfied they give a true and fair view of the assets, liabilities and financial position of the Company as at the financial year end and of the profits or loss of the Company for the financial year and otherwise comply with the Companies Act 2014. In preparing these financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and estimates that are reasonable and prudent;
state whether the financial statements have been prepared in accordance with the applicable accounting standards, identify those standards, and note the effects and reasons for any material departure from those standards; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. The Directors are responsible for ensuring that the Company keeps or causes to be kept adequate accounting records which correctly explain and record the transactions of the Company, enable at any time the assets, liabilities, financial positions and profit and loss of the Company to be determined with reasonable accuracy, enable to ensure that the financial statements and Directors’ Report comply with the Companies Act 2014 and with the European Communities (Undertakings for Collective Investments in Transferable Securities) Regulations, 2011 and Central Bank (Supervision and Enforcement) Act 2013 (section 48(1)) (Undertakings for Collective Investments in Transferable Securities) Regulations, 2015 and enable the financial statements to be audited. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregulaties. Directors’ statement on accounting records under the Companies Act 2014 The measures taken by the Directors to ensure compliance with the requirements of Section 281 to 285 of the Companies Act 2014 with regard to the keeping of accounting records are the use of appropriate systems and procedures and employment of a fund administration company. The accounting records are held at RBC Investor Services Ireland Limited (the “Administrator"), 4th Floor, One George's Quay Plaza, George's Quay, Dublin 2, Ireland. Statement of Audit Information
The Directors confirm that during the financial year end 31 December 2016: a) So far as the Directors are aware, there is no relevant audit information of which the Company’s statutory auditors are unaware, and b) The Directors have taken all steps that ought to have been taken by the Directors in order to make themselves aware of any relevant audit information and to establish that the Company’s auditors are aware of that information.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
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DIRECTORS’ REPORT AND STATEMENT OF DIRECTORS’ RESPONSIBILITIES (continued) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016
Date of incorporation
The Company was incorporated on 1 September 2011 and was authorised as an Undertaking for Collective Investment in Transferable Securities (“UCITS”) by the Central Bank of Ireland. The Company is organised as an investment company with variable capital pursuant to the UCITS Regulations. The Company is an umbrella type investment company with segregated liability among sub-funds. As of the date of this report the Company has five active sub-funds disclosed in note 1.
Principal activities The primary investment objective of the Company is to seek long-term capital growth and it aims to achieve this as follows: Brookfield Global Listed Infrastructure UCITS Fund The sub-fund seeks total return through growth of capital and current income. The sub-fund seeks to achieve its investment objective by investing primarily in securities of infrastructure companies listed or traded on a Recognised Market. Brookfield Global Listed Real Estate UCITS Fund The sub-fund seeks total return through growth of capital and current income. The sub-fund seeks to achieve its investment objective by investing primarily in real estate investment trusts (REITs) and other related securities issued by U.S. and non-U.S. real estate companies.
Brookfield US Listed Real Estate UCITS Fund The sub-fund seeks total return through growth of capital and current income. The sub-fund seeks to achieve its investment objective by investing primarily in real estate investment trusts (REITs) and other related securities issued by U.S. real estate companies.
Brookfield Global Listed Infrastructure Long Short UCITS Fund The sub-fund seeks to generate high risk-adjusted absolute returns with low correlation to the broad equity and fixed income markets. The sub-fund seeks to achieve its investment objective by taking long and short positions primarily in equity securities of publicly traded infrastructure companies throughout the world. These include publicly traded securities of infrastructure companies whose primary operations or principal trading market are in non-U.S. markets.
Brookfield Real Assets Securities UCITS Fund The sub-fund seeks total return, which is targeted to be in excess of inflation, through growth of capital and current income. The sub-fund seeks to achieve its investment objective by investing at least 80% of its net assets in both equity and fixed income securities of “real assets” asset classes, in the following categories, all of which will be listed or traded on a recognised market: real estate securities, infrastructure securities; and natural resources securities. Brookfield Real Assets Debt UCITS Fund The sub-fund seeks total return, which is targeted to be in excess of inflation, through current income and growth of capital. The sub-fund seeks to achieve its investment objective by investing at least 80% of its net assets in fixed income securities of “real assets” asset classes in the following categories, all of which will be listed or traded on a recognised market: real estate securities; infrastructure securities; and natural resources securities. Brookfield Real Assets Debt UCITS Fund is not currently available for purchase.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
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DIRECTORS’ REPORT AND STATEMENT OF DIRECTORS’ RESPONSIBILITIES (continued) FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 Review of Business and Future Developments A comprehensive overview of the Company’s trading activities is detailed in the Investment Manager’s Report for each sub-fund. Risk Management Objectives and Processes The Company operates on the principle of risk spreading in accordance with the UCITS Regulations. Achievement of the investment objectives involves taking risks. The Investment Manager exercises judgement based on analysis, research and risk management techniques when making investment decisions. Investment in equities, bonds, cash and derivatives exposes a sub-fund to varying risks, including market, liquidity and credit/counterparty risks. A description of the specific risks and the processes for managing these risks is included in note 8 to the financial statements. The Prospectus provides details of these and other types of risks some of which are additional to that information provided in these financial statements. Results and Dividends The financial position and results for the financial year are set out on pages 21 to 38. Dividends of USD 3,728,839 (31 December 2015: USD 2,456,666) on the Brookfield Global Listed Infrastructure UCITS Fund – Class F and USD 24,225 (31 December 2015: USD 2,523,978) on the Brookfield Global Listed Real Estate UCITS Fund – Class F were paid for the financial year ended 31 December 2016. Dividends of USD 1,866,662 (31 December 2015: USD 1,934,849) on the Brookfield US Listed Real Estate UCITS Fund – Class Q were paid for the financial year ended 31 December 2016. For further details of dividends declared during the financial year please refer to note 4. Significant Events during the Financial Year The new UCITS V depositary liability provisions came into effect from 18 March 2016. The Custodian is now termed Depositary. Significant Events Since Financial Year End There have been no significant events that took place since the financial year end. Directors The persons who were Directors of the Company at any time during the financial year are Heather Goldman, Jonathan Crile Tyras, Maire O’Connor and Des Quigley. Directors' and Secretary's Interests Jonathan Tyras was the General Counsel, Chief Financial Officer and Managing Director of the Investment Manager as at 31 December 2016 (31 December 2015). None of the Directors or Secretary held any redeemable participating shares as at 31 December 2016 (31 December 2015: none).
Connected Person Transactions
The Central Bank UCITS Regulations states that any transaction carried out with a UCITS by a management company or depositary to a UCITS; and the delegates or sub-delegates of such a management company or depositary (excluding any non-group company sub-custodians appointed by a depositary); and any associated or group company of such a management company, depositary, delegate or sub-delegate (“connected person”) must be carried out as if conducted at arm’s length. Transactions must be in the best interests of the shareholders.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
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INVESTMENT MANAGER’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND MANAGEMENT DISCUSSION OF FUND PERFORMANCE By sector, Gas Utilities was the leading contributor relative to the Dow Jones Brookfield Global Infrastructure Composite Index
1 (“Benchmark”) due to stock selection. Midstream also contributed due to stock selection and
overweight exposure, as did a combination of stock selection and overweight exposure within Airports. Conversely, stock selection and underweight exposure within the Pipelines sector was the leading detractor during the year. Stock selection in the Water sector also detracted, as did overweight exposure to Toll Roads. By region, Latin America and Canada were the leading contributors to relative performance due to stock selection. Conversely, the U.K. was the leading regional detractor due to stock selection. Continental Europe slightly detracted, driven by overweight exposure to the underperforming region. In terms of individual securities, the leading contributors to relative performance were energy infrastructure stocks, which benefitted from the rebound in energy prices. Overweight positions in Targa Resources Corp. (TRGP US, Midstream, United States) and Williams Companies, Inc. (WMB US, Midstream, United States) were the leading contributors. Overweight exposure to Eutelsat Communications SA (ETL FP, Communications, France) as the stock rallied also meaningfully contributed to relative performance. Conversely, zero allocation to Spectra Energy Corp (SE US, Pipelines, United States) was the leading detractor from relative performance as the stock rallied meaningfully following the announcement that Canada's Enbridge Inc. (ENB, Pipelines, Canada) would buy the company in an all-stock deal. Zero exposure to ONEOK, Inc. (OKE US, Midstream, United States) was also a leading detractor as the stock rallied along with energy prices. Overweight exposure to Groupe Eurotunnel SE (GET FP, Toll Roads, France) detracted as well—the stock underperformed following the U.K. referendum to exit the European Union. INFRASTRUCTURE MARKET OVERVIEW Global equity markets, as measured by the MSCI World Index, gained 8.2% in 2016. North America led all regions (+12.3%) and Asia Pacific and Europe gained 4.5% and 0.2%, respectively. The year began in a volatile fashion as plunging oil prices and concerns about a slowing Chinese economy exerted pressure on global markets through the first six weeks of the year. As energy prices began to stabilize and a more positive narrative around global growth emerged, stocks began to rally off their 11 February lows. Heightened geopolitical risks emerged in 2016 amid a series of unexpected populist movements—most notably, the surprising June 23 U.K. referendum in which voters elected to leave the European Union, as well as the equally unexpected outcome of the U.S. election. Donald J. Trump’s campaign promised to fuel U.S. economic growth through a combination of tax reforms, decreased regulations and increased infrastructure spending. The Trump victory resulted in a boost for broader equity markets, but interest rate-sensitive sectors were negatively impacted by the accompanying increase in interest rates. On a year-over-year basis, the 18 basis-point increase in 10-Year U.S. Treasury yields (to 2.45%) might appear relatively muted. However, during the fourth quarter, yields spiked 85 basis points; on a percentage-change basis, it was the largest quarterly increase in history and the largest absolute increase in yields since the first quarter of 1994. 1 The Dow Jones Brookfield Global Infrastructure Composite Index is calculated and maintained by S&P Dow Jones Indices and comprises infrastructure companies
with at least 70% of their annual cash flows derived from owning and operating infrastructure assets, including Master Limited Partnerships. You cannot invest directly in an index.
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INVESTMENT MANAGER’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND (continued) Infrastructure securities outperform in 2016 Global infrastructure securities outperformed the MSCI World Index in 2016, with the Dow Jones Brookfield Global Infrastructure Composite Index gaining 11.7%.
2 Regional returns were mixed, as the Americas rose 25.3%, while
Europe and Asia Pacific declined 8.6% and 0.6%, respectively. Six of eight sectors generated positive returns, led by Oil & Gas Storage & Transportation (27.5%), Diversified (7.5%), Airports (4.2%), Electricity Transmission & Distribution (3.6%), Water (3.6%) and Communications (1.7%); while Toll Roads (−6.1%) and Ports (−4.3%) declined in the period. The Dow Jones Brookfield Infrastructure MLP Index rose 20.8% during the year as energy prices rebounded. The macro environment for investors in global infrastructure securities proved to be more conducive in 2016 than the previous year. Despite a precipitous decline through the first six weeks of 2016, West Texas Intermediate Crude gained nearly 45% in 2016, ending the year at $53.75 per barrel. Anticipation throughout the year of deal among members of the Organization of the Petroleum Exporting Countries (OPEC) to cut production came to fruition in November. The cartel’s production cut, its first since 2008, helped stabilize the outlook for energy prices moving forward. Although the rapid increase in interest rates in the fourth quarter exerted pressure on many bond-like sectors within listed infrastructure, the majority of these sectors still produced positive returns for the full year. OUTLOOK The outlook within energy infrastructure continues to improve as a strengthening commodity price environment should translate to healthier exploration and production customers. This should reduce counterparty risk and improve the outlook for volume growth as rigs are added. Balance sheets generally remain healthy as much of the needed restructuring in terms of dividend policy has already taken place and the pace of capital expenditures growth has slowed. Despite the pullback in U.S. utility stocks, overall valuations remain elevated. We continue to be selective and are adding exposure where we see value. We have begun to see attractive valuations emerge in European utilities and have added exposure opportunistically. We remain cautious around political risks and continue to monitor elections in the region; underlying macroeconomic trends, however, appear to remain stable. Within transports, traffic growth among European Toll Roads remains healthy and is accelerating, which has translated to healthy organic cash flow growth. We remain positive on the long-term growth prospects in the communications sector and the potential for the next phase of network growth to happen sooner than previously expected. However, near-term market sentiment may be affected by the renewed prospect of proposed mergers among carriers, the changing interest rate environment and headline risk around network operators attempting to eliminate contract escalators. In the near term, sectors within listed infrastructure could endure headwinds if interest rates experience rapid moves higher, like those we witnessed during the fourth quarter. Nevertheless, return expectations for the asset class continue to be positive over the long term. Continued increases in rates would likely be a result of higher growth expectations and inflation expectations, which is good for infrastructure stocks over the longer term. Some volatility is likely to persist, but given our longer-term investment horizon, we view volatility as a very good buying opportunity. Brookfield Investment Management Inc. April 2017 2 The Dow Jones Brookfield Global Infrastructure Composite Index is calculated and maintained by S&P Dow Jones Indices and comprises infrastructure companies
with at least 70% of their annual cash flows derived from owning and operating infrastructure assets, including Master Limited Partnerships (“MLPs”).
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INVESTMENT MANAGER’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND MANAGEMENT DISCUSSION OF FUND PERFORMANCE During the 12-month period ending 31 December 2016, the Diversified sector was the leading contributor to relative performance, driven by stock selection and underweight exposure to the underperforming sector. Residential was the second largest contributor, driven by stock selection. Underweight exposure to the underperforming Self Storage sector also contributed. Conversely, the Healthcare and Industrial sectors were the leading detractors, both driven by stock selection. The U.S. was the top contributing region, driven by stock selection. Overweight exposure and stock selection in the U.K. contributed as well. Conversely, underweight exposure within Canada was the sole regional detractor from relative performance during the period. By security, overweight exposure to Wharf (Holdings) Ltd. (4 HK, Diversified, Hong Kong) was the leading contributor to relative performance during the year. An overweight allocation to Dexus Property Group (DXS AU, Diversified, Australia) also contributed as the stock performed well on an improving outlook for the Sydney office market and strong performance overall in the region. Non-index holding CyrusOne, Inc. (CONE, Other) was also a leading contributor. The stock outperformed amid improving fundamentals and strong demand within the data center sector. Non-index holding Brookdale Senior Living Inc. (BKD, Healthcare) was the leading detractor from relative performance. The company announced a new joint venture with Blackstone in November. We viewed the news as generally positive, but the company also announced they were reducing earnings guidance and were seeing an "unprecedented" level of new supply in mid-market cities, in which the company has meaningful exposure. The company expects the heightened supply to persist through mid-2017. This new supply should not have been a surprise to management and we believe that it was management’s apparent lack of preparedness for this supply which was a major contributor to the selloff. Overweight exposure to Hongkong Land Holdings Limited (HKL.SP, Office, Hong Kong) was the second largest detractor as stocks in the region sold off meaningfully following the increase in interest rates after the U.S. presidential election. Overweight exposure to SL Green Realty Corp. (SLG, Office) was the third largest detractor. The company underperformed early in the year due to worries around its higher leverage position and fears that banks would cut back on space. GLOBAL REAL ESTATE MARKET OVERVIEW Global equity markets, as measured by the MSCI World Index, gained 8.2% in 2016. North America led all regions (+12.3%) and Asia Pacific and Europe gained 4.5% and 0.2%, respectively. Global real estate securities, as measured by the FTSE EPRA/NAREIT Developed Index (the “Benchmark”)
1 gained
5.0% for the year. North America led all regions (up 8.2%), followed by Asia Pacific (6.1%), while Europe declined 7.3%. The year began with precipitously declining oil prices, deflationary pressures across developed economies and the prospect that a slowing Chinese economy could exert pressure on global economic growth. As the year wore on, however, oil staged a meaningful rebound, inflation expectations increased and concerns about China’s growth trajectory abated. A series of unexpected populist movements also emerged in 2016—most notably, the surprising 23 June U.K. referendum in which voters elected to leave the European Union, as well as the equally unexpected outcome of the U.S. election. Donald J. Trump’s campaign promised to fuel U.S. economic growth through a combination of tax reforms, decreased regulations and increased infrastructure spending. 1 The FTSE EPRA/NAREIT Developed Index is a free-float adjusted, liquidity, size and revenue screened index designed to track the performance of listed real estate
companies and REITs worldwide.
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INVESTMENT MANAGER’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND (continued) The outcome of the Brexit vote resulted in a meaningful decline in the price of real estate securities in the U.K. The Trump victory resulted in a boost for broader equity markets, but interest rate-sensitive sectors were negatively impacted by the accompanying increase in interest rates. On a year-over-year basis, the 18 basis-point increase in 10-Year U.S. Treasury yields (to 2.45%) might appear relatively muted. However, during the fourth quarter, yields spiked 85 basis points; on a percentage-change basis, it was the largest quarterly increase in history and the largest absolute increase in yields since the first quarter of 1994. Despite a fourth quarter decline as interest rates moved sharply higher, 2016 was largely a positive year for global REITs. As expectations for growth, inflation and interest rates shifted during the fourth quarter, many opportunities to capitalize on dislocations across sectors and regions have emerged. OUTLOOK We are cautiously optimistic about current REIT pricing in the U.S. We find pricing to be attractive if interest rates stay near current levels, but would become less optimistic if there were another sharp move higher for long-term rates. Although real estate provides a hedge against inflation over the medium-to-long term, it is adversely affected by rising rates in the short term. This has led us to be cautious about exposure to interest rate-sensitive sectors where pricing has been elevated for quite some time. Some of our caution also stems from uncertainties around government policy and the effect those outcomes will have on the U.S. economy. We are also cautious that we are many years into the current U.S. real-estate cycle. However, we remain optimistic that limited levels of new construction during this cycle, combined with a potential boost in economic activity could help extend the length of this cycle for several more years. In our view, some of the most appealing opportunities today are found in the U.K. and Hong Kong. The sharp drop in equity prices in the U.K. post Brexit has created an attractive opportunity to meaningfully increase exposure to this market at prices and valuations which we have not seen in many years. We believe the risks associated with Brexit are priced in at current levels. We also see opportunity in Hong Kong as we believe the concerns of a slowdown in China are fully priced in at this point. Recent transactions suggest that NAV estimates for many companies may be meaningfully below actual private market values. We continue to see attractive spreads in relative value across sectors and regions and will continue to adjust the portfolio to take advantage of market dislocations. Brookfield Investment Management Inc. April 2017
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INVESTMENT MANAGER’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 BROOKFIELD US LISTED REAL ESTATE UCITS FUND MANAGEMENT DISCUSSION OF FUND PERFORMANCE During the 12-month period ending 31 December 2016, Healthcare was the leading sector detractor from relative performance, driven by stock selection. The Diversified sector also detracted due to stock selection and underweight exposure during the period. Stock selection within other sectors detracted as well. Conversely, underweight exposure to Self Storage was the leading contributor as it was the worst performing sector in 2016. The Hotel and Office sectors were also among top contributors, both driven by stock selection and overweight exposure. Non-index holding Brookdale Senior Living Inc. (BKD, Healthcare) was the leading detractor from relative performance. The company announced a new joint venture with Blackstone in November. We viewed the news as generally positive, but the company also announced they were reducing earnings guidance and were seeing an "unprecedented" level of new supply in mid-market cities, in which the company has meaningful exposure. The company expects the heightened supply to persist through mid-2017. This new supply should not have been a surprise to management and we believe that it was management’s apparent lack of preparedness for this supply which was a major contributor to the selloff. Overweight allocation to Care Capital Properties, Inc. (CCP, Healthcare) was the second largest detractor during the year. Overweight exposure to SL Green Realty Corp. (SLG, Office) also detracted. The company underperformed early in the year due to worries around its higher leverage position and fears that banks would cut back on space. Conversely, overweight exposure to LaSalle Hotel Properties (LHO, Hotel) was the leading contributor to relative performance. The Hotel sector was a top performer in 2016 amid improving growth prospects for the U.S. economy following the election. An overweight position in CyrusOne, Inc. (CONE, Other) was also a leading contributor. The stock outperformed amid improving fundamentals and strong demand within the data center sector. Underweight exposure to Public Storage (PSA, Self Storage) was also a leading contributor as the stock declined nearly 7% during the year. US REAL ESTATE MARKET OVERVIEW For the period from 1 January 2016 through 31 December 2016 (the “Period”), the S&P 500 Total Return Index
1
advanced 12.0%. U.S. real estate securities were up 8.6% for the 12 months as measured by the MSCI U.S. REIT Total Return Index
2 (the “Benchmark”). By sector, Industrial/Office gained 31.1%, followed by Industrial (30.1%), Hotels (24.6%),
Diversified (15.8%), Office (12.3%), Healthcare (6.1%), Residential (3.9%) and Retail (0.9%). Self Storage was the only sector to post negative returns (down 8.5%) for the year.
3
The year began with precipitously declining oil prices, deflationary pressures across developed economies and the prospect that a slowing Chinese economy could exert pressure on global economic growth. As the year wore on, however, oil staged a meaningful rebound, inflation expectations increased and concerns about China’s growth trajectory abated. A series of unexpected populist movements also emerged in 2016—most notably, the surprising June 23 U.K. referendum in which voters elected to leave the European Union, as well as the equally unexpected outcome of the U.S. election. Donald J. Trump’s campaign promised to fuel U.S. economic growth through a combination of tax reforms, decreased regulations and increased infrastructure spending. 1 The S&P 500 Total Return Index is a broad based unmanaged index of 500 stocks, which is widely recognized as representative of the U.S. equity market in
general. You cannot invest directly in an index. 2 The MSCI U.S. REIT Total Return Index (RMS) is a total return market capitalization-weighted index which prices once per day after market close. It is calculated by
MSCI and is composed of equity REITs that are included in the MSCI US Investable Market 2500 Index. You cannot invest directly in an index. 3 Source: The FTSE EPRA/NAREIT Developed Sector Index, a free-float adjusted, liquidity, size and revenue screened index designed to track the performance of
listed real estate companies and REITs worldwide.
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INVESTMENT MANAGER’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 BROOKFIELD US LISTED REAL ESTATE UCITS FUND (continued) The Trump victory resulted in a boost for broader equity markets, but interest rate-sensitive sectors were negatively impacted by the accompanying increase in interest rates. On a year-over-year basis, the 18 basis-point increase in 10-Year U.S. Treasury yields (to 2.45%) might appear relatively muted. However, during the fourth quarter, yields spiked 85 basis points; on a percentage-change basis, it was the largest quarterly increase in history and the largest absolute increase in yields since the first quarter of 1994. Despite a fourth quarter decline as interest rates moved sharply higher, 2016 was largely a positive year for the U.S. REIT market. As expectations for growth, inflation and interest rates shifted during the fourth quarter, many opportunities to capitalize on market dislocations have emerged. OUTLOOK We are cautiously optimistic about current REIT pricing in the U.S. We find pricing to be attractive if interest rates stay near current levels, but would become less optimistic if there were another sharp move higher for long-term rates. Although real estate provides a hedge against inflation over the medium-to-long term, it is adversely affected by rising rates in the short term. This has led us to be cautious about exposure to interest rate-sensitive sectors where pricing has been elevated for quite some time. Some of our caution also stems from uncertainties around government policy and the effect those outcomes will have on the U.S. economy. We are also cautious that we are many years into the current U.S. real-estate cycle. However, we remain optimistic that limited levels of new construction during this cycle, combined with a potential boost in economic activity could help extend the length of this cycle for several more years. We continue to see attractive spreads in relative value across companies and sectors and will continue to adjust the portfolio to take advantage of market dislocations. Brookfield Investment Management Inc. April 2017
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INVESTMENT MANAGER’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 BROOKFIELD GLOBAL LISTED INFRASTRUCTURE LONG SHORT FUND MANAGEMENT DISCUSSION OF FUND PERFORMANCE For the fiscal year ended 31 December 2016, the Brookfield Global Listed Infrastructure Long Short UCITS Fund – Class E (USD) had a total return of 11.3%. Master Limited Partnerships (MLP), Midstream and Pipelines were among the largest sector contributors to returns for the year, benefitting from the rebound in energy prices throughout 2016. The water and airports sectors also contributed during the period. Conversely, Electricity Transmission & Distribution was the leading sector detractor. By region, the U.S. was the largest contributor, followed by Canada and Asia Pacific. In terms of individual securities, long positions in Targa Resources Corp. (TRGP, Midstream, U.S.), Rice Midstream Partners (RMP, MLP, U.S.) and Williams Partners, L.P. (WPZ, MLP, U.S.) were the top contributors as oil prices rebounded. In contrast, a short position in Plains All American Pipeline, L.P. (PAA, MLP, U.S.) was the leading detractor. Long positions in Long Rumo Logistica Operadora Multimodal SA (RUMO3.BZ, Rail, Latin America) and Cosan Limited (CZZ, Gas Utilities, Latin America) also detracted. INFRASTRUCTURE MARKET OVERVIEW Global equity markets, as measured by the MSCI World Index, gained 8.2% in 2016. North America led all regions (+12.3%) and Asia Pacific and Europe gained 4.5% and 0.2%, respectively. The year began in a volatile fashion as plunging oil prices and concerns about a slowing Chinese economy exerted pressure on global markets through the first six weeks of the year. As energy prices began to stabilize and a more positive narrative around global growth emerged, stocks began to rally off their 11 February lows. Heightened geopolitical risks emerged in 2016 amid a series of unexpected populist movements—most notably, the surprising June 23 U.K. referendum in which voters elected to leave the European Union, as well as the equally unexpected outcome of the U.S. election. Donald J. Trump’s campaign promised to fuel U.S. economic growth through a combination of tax reforms, decreased regulations and increased infrastructure spending. The Trump victory resulted in a boost for broader equity markets, but interest rate-sensitive sectors were negatively impacted by the accompanying increase in interest rates. On a year-over-year basis, the 18 basis-point increase in 10-Year U.S. Treasury yields (to 2.45%) might appear relatively muted. However, during the fourth quarter, yields spiked 85 basis points; on a percentage-change basis, it was the largest quarterly increase in history and the largest absolute increase in yields since the first quarter of 1994. Infrastructure securities outperform in 2016 Global infrastructure securities outperformed the MSCI World Index in 2016, with the Dow Jones Brookfield Global Infrastructure Composite Index gaining 11.7%. Regional returns were mixed, as the Americas rose 25.3%, while Europe and Asia Pacific declined 8.6% and 0.6%, respectively. Six of eight sectors generated positive returns, led by Oil & Gas Storage & Transportation (27.5%), Diversified (7.5%), Airports (4.2%), Electricity Transmission & Distribution (3.6%), Water (3.6%) and Communications (1.7%); while Toll Roads (−6.1%) and Ports (−4.3%) declined in the period. The Dow Jones Brookfield Infrastructure MLP Index rose 20.8% during the year as energy prices rebounded. The macro environment for investors in global infrastructure securities proved to be more conducive in 2016 than the previous year. Despite a precipitous decline through the first six weeks of 2016, West Texas Intermediate Crude gained nearly 45% in 2016, ending the year at $53.75 per barrel. Anticipation throughout the year of deal among members of the Organization of the Petroleum Exporting Countries (OPEC) to cut production came to fruition in November. The cartel’s production cut, its first since 2008, helped stabilize the outlook for energy prices moving forward. Although the rapid increase in interest rates in the fourth quarter exerted pressure on many bond-like sectors within listed infrastructure, the majority of these sectors still produced positive returns for the full year.
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INVESTMENT MANAGER’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 BROOKFIELD GLOBAL LISTED INFRASTRUCTURE LONG SHORT FUND (continued) OUTLOOK The outlook within energy infrastructure continues to improve as a strengthening commodity price environment should translate to healthier exploration and production customers. This should reduce counterparty risk and improve the outlook for volume growth as rigs are added. Balance sheets generally remain healthy as much of the needed restructuring in terms of dividend policy has already taken place and the pace of capital expenditures growth has slowed. Despite the pullback in U.S. utility stocks, overall valuations remain elevated. We continue to be selective and are adding exposure where we see value. We have begun to see attractive valuations emerge in European utilities and have added exposure opportunistically. We remain cautious around political risks and continue to monitor elections in the region; underlying macroeconomic trends, however, appear to remain stable. Within transports, traffic growth among European Toll Roads remains healthy and is accelerating, which has translated to healthy organic cash flow growth. We remain positive on the long-term growth prospects in the communications sector and the potential for the next phase of network growth to happen sooner than previously expected. However, near-term market sentiment may be affected by the renewed prospect of proposed mergers among carriers, the changing interest-rate environment and headline risk around network operators attempting to eliminate contract escalators. In the near term, sectors within listed infrastructure could endure headwinds if interest rates experience rapid moves higher, like those we witnessed during the fourth quarter. Nevertheless, return expectations for the asset class continue to be positive over the long term. Continued increases in rates would likely be a result of higher growth expectations and inflation expectations, which is good for infrastructure stocks over the longer term. Some volatility is likely to persist, but given our longer-term investment horizon, we view volatility as a very good buying opportunity. Brookfield Investment Management Inc. April 2017
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INVESTMENT MANAGER’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 BROOKFIELD REAL ASSETS SECURITIES UCITS FUND For the fiscal year ended 31 December 2016, the Brookfield Real Assets Securities UCITS Fund had a total return of 10.15%, which assumes the reinvestment of dividends and is exclusive of brokerage commissions. All asset class components of the Fund contributed positively to performance on an absolute basis. On a relative to the benchmark performance basis, Core Real Estate was the leading contributor, driven by security selection within the sector. Real Asset Debt was the second largest contributor to relative performance, driven by security selection within the sector which was partially offset by an overweight allocation to the underperforming sector. Conversely, Core Infrastructure was the leading detractor on a relative basis, driven by security selection and an underweight allocation to the outperforming asset class. The Fund’s diversification by geography and sector as of 31 December 2016, is summarized in the tables below.
In the next section, we provide further detail on the performance of each asset class, along with our outlook for investing in real asset-related securities. GLOBAL INFRASTRUCTURE SECURITIES Global infrastructure securities outperformed the MSCI World Index in 2016, with the Dow Jones Brookfield Global Infrastructure Composite Index gaining 11.7%. Regional returns were mixed, as the Americas rose 25.3%, while Europe and Asia Pacific declined 8.6% and 0.6%, respectively. Six of eight sectors generated positive returns, led by Oil & Gas Storage & Transportation (27.5%), Diversified (7.5%), Airports (4.2%), Electricity Transmission & Distribution (3.6%), Water (3.6%) and Communications (1.7%); while Toll Roads (−6.1%) and Ports (−4.3%) declined in the period. The Alerian MLP Index Index rose 18.3% during the year as energy prices rebounded. The macro environment for investors in global infrastructure securities proved to be more conducive in 2016 than the previous year. Despite a precipitous decline through the first six weeks of 2016, West Texas Intermediate Crude gained nearly 45% in 2016, ending the year at $53.75 per barrel. Although the rapid increase in interest rates in the fourth quarter exerted pressure on many bond-like sectors within listed infrastructure, the majority of these sectors still produced positive returns for the full year. The outlook within energy infrastructure continues to improve as a strengthening commodity price environment should translate to healthier exploration and production customers. This should reduce counterparty risk and improve the outlook for volume growth as rigs are added. In the near term, sectors within listed infrastructure could endure headwinds if interest rates experience rapid moves higher, like those we witnessed during the fourth quarter. Nevertheless, return expectations for the asset class continue to be positive over the long term. Continued increases in rates would likely be a result of higher growth expectations and inflation expectations, which is good for infrastructure stocks over the longer term. Some volatility is likely to persist, but given our longer-term investment horizon, we view volatility as a very good buying opportunity.
Geographic Diversification United States 62.1% Continental Europe 9.8% United Kingdom 7.8% Canada 7.0% China/Hong Kong 3.7% Australia/New Zealand 3.1% Japan 2.8% Other Asia 1.4% Latin America 1.1% Other 0.1% Bermuda 0.1% Cash 1.0%
Sector Diversification Real Estate Equities 36.5% Core Real Estate 31.6% REIT Preferreds 4.9% Infrastructure Equities 48.0% Core Infrastructure 39.9% MLPs 8.1% Real Asset Debt 14.4%
Cash & Other 0.6%
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INVESTMENT MANAGER’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 BROOKFIELD REAL ASSETS SECURITIES UCITS FUND (continued) GLOBAL REAL ESTATE SECURITIES Global real estate securities, as measured by the FTSE EPRA/NAREIT Developed Index (the “Benchmark”) gained 5.0% for the year. North America led all regions (up 8.2%), followed by Asia Pacific (6.1%), while Europe declined 7.3%. Despite a fourth quarter decline as interest rates moved sharply higher, 2016 was largely a positive year for global REITs. As expectations for growth, inflation and interest rates shifted during the fourth quarter, many opportunities to capitalize on dislocations across sectors and regions have emerged. We are cautiously optimistic about current REIT pricing in the U.S. We find current pricing to be attractive if interest rates stay near current levels, but would become less optimistic if there were another sharp move higher for long-term rates. Although real estate can provide a hedge against inflation over the medium-to-long term, it can be adversely affected by rising rates in the short term. This has led us to be cautious about exposure to the more interest rate-sensitive real estate sectors where pricing has been elevated for quite some time. Some of our caution also stems from uncertainties around government policy and the effect those outcomes will have on the U.S. economy. Outside of the U.S. select markets are attractive. As we look at individual markets there are varying outlooks for real estate fundamentals across countries, as well as wide dispersions in valuations. Taken together, we believe these create attractive opportunities for active management. FIXED INCOME The BofA Merrill Lynch Global High Yield Index rose 14.8% in 2016. Investment grade securities advanced 4.3%, as measured by the BofA Merrill Lynch Global Corporate Index. Following the U.S. presidential election, we witnessed an increase in inflation expectations, which resulted in higher bond yields. We also witnessed a spike in volatility following the election, but it has since returned to more muted levels. In broad high-yield credit, yields have declined in a strong post-election rally, as have spreads. Rising interest rates have weighed more heavily on investment grade securities. We continue to favor B/BB quality bonds as representing the "sweet spot" between the interest-rate risk of investment-grade securities and credit risk of CCC-rated issues. OPPORTUNISTIC During the year we made important changes to the fund’s long-term, strategic asset allocations. We reduced our long-term strategic allocations to the inflation-sensitive Natural Resource Equities, Commodities and Treasury Inflation Protected securities (TIPs) sectors. These sectors have historically performed well in times of inflation, but have generally been average to disappointing performers in many other market environments. Accordingly, we reduced our long-term strategic allocation to these sectors to zero. Going forward, we will allocate to these sectors on an opportunistic basis, generally in times of rising inflation. Offsetting these reductions, we increased our long-term strategic allocations to Real Estate Equities and Infrastructure Equities. Natural Resources Equities gained 32.3% during the year, as measured by the S&P Global Natural Resources Index. The Metals & Mining component of the index gained 56.4%, the Energy component was up 28.4% and the Agribusiness component rose 11.2%. The Bloomberg Commodity Index advanced 11.8% in 2016, driven largely by gains in energy prices. The Bloomberg Barclays US Treasury Inflation Notes Index rose 4.7% during the year. Despite the strong performance for many opportunistic assets in 2016, fundamentals have not changed dramatically yet. The strong returns within Natural Resources Equities and Commodities during the fourth quarter reflected expectations of significant improvement due to the new administration’s proposed policies. We continue to monitor those policies for signs that tactical allocations to these sectors are attractive from a risk/reward standpoint.
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INVESTMENT MANAGER’S REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2016 BROOKFIELD REAL ASSETS SECURITIES UCITS FUND (continued) OUTLOOK FOR THE FUND Recent uncertainty around interest rates and the rapid increase in bond yields has led to weakness in some rate-sensitive real asset industries. Portfolio managers of our underlying sleeves therefore remain even more focused on stock selection and strong balance sheets amid uncertainty around the incoming U.S. administration and the Fed’s next steps. From an asset allocation perspective, we have a keen eye on economic trends, political uncertainty and central bank actions around the globe. While these uncertainties can increase volatility, they afford allocators, like ourselves, the opportunity to add value by adjusting allocations across the real asset landscape where we see particular opportunities. Brookfield Investment Management Inc. April 2017
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STATEMENTS OF FINANCIAL POSITION As at 31 December 2016
Brookfield Brookfield Brookfield Brookfield
Global Listed Global Listed Global Listed Global Listed
Infrastructure Infrastructure Real Estate Real Estate
UCITS Fund UCITS Fund UCITS Fund UCITS Fund
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
Notes USD USD USD USD
Assets
Financial assets at fair value through profit or loss:
Investment in transferable securities 8 629,055,748 561,386,050 196,662,384 192,091,292
Investment in financial derivative instruments 9 & 10 - - 303,553 -
Cash at bank 5 2,178,987 637,248 6,003,042 2,639,091
Amount receivable on sale of securities 2 - 12,499,741 746,990 7,114,820
Amount receivable on subscriptions 2 815,618 8,338 3,147,841 1,041,373
Interest and dividends receivable 2 1,919,619 2,007,345 697,065 769,296
Receivable from investment manager 3 - 182,035 - 34,231
Prepaid expenses 8 4,835 57,179 7,001
Total assets 633,969,980 576,725,592 207,618,054 203,697,104
Liabilities
Financial liabilities at fair value through profit or loss:
Investment in financial derivative instruments liabilities 9 & 10 - - 5 -
Amount payable on purchase of securities 2 - 4,417,421 5,664,400 280,908
Amount payable on redemptions 2 270,360 4,884,722 1,304,841 11,000,000
Investment management fees payable 3 485,387 485,125 136,072 152,713
Administration fees payable 3 14,968 13,912 8,161 8,425
Transfer agency fees payable 3 3,294 1,380 3,318 1,380
Directors’ fees payable 3 13,621 13,960 3,813 5,596
Depositary and depositary oversight fees payable 3 26,092 15,593 8,390 6,385
Audit and tax fees payable 3 10,891 11,501 10,891 11,500
Other accrued expenses and liabilities 99,469 45,280 20,268 23,761
Total liabilities (excluding amounts attributable
to holders of redeemable participating shares) 924,082 9,888,894 7,160,159 11,490,668
Net assets attributable to holders of redeemable
participating shares 14 633,045,898 566,836,698 200,457,895 192,206,436
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations.
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STATEMENTS OF FINANCIAL POSITION (continued) As at 31 December 2016
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations. * Launched on 25 May 2016.
Brookfield Brookfield Brookfield Brookfield
Global Listed Global Listed Global Listed Global Listed
Infrastructure Infrastructure Real Estate Real Estate
UCITS Fund UCITS Fund UCITS Fund UCITS Fund
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
Number of shares in issue
Shares In Issue B Class 11,128,139.77 10,485,518.05 143,423.21 116,404.20
Net Asset Value Per Share B Class EUR 35.79 EUR 31.23 EUR 43.71 EUR 40.05
Shares In Issue E Class 4,339,331.59 4,890,828.80 4,437,225.17 3,816,426.87
Net Asset Value Per Share E Class USD 28.04 USD 25.20 USD 34.25 USD 32.33
Shares In Issue F Class 5,089,240.18 5,221,853.95 122,363.86 3,096,341.38
Net Asset Value Per Share F Class USD 17.81 USD 16.65 USD 20.97 USD 20.59
Shares In Issue M Class 39,820.10 62,109.39 - -
Net Asset Value Per Share M Class USD 16.39 USD 14.85 - -
Shares In Issue I Class* - - 1,832,182.00 -
Net Asset Value Per Share I Class - - EUR 20.34 -
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STATEMENTS OF FINANCIAL POSITION (continued) As at 31 December 2016
Brookfield Brookfield Brookfield Brookfield
US Listed US Listed Global Listed Global Listed
Real Estate Real Estate Infrastructure Long Infrastructure Long
UCITS Fund UCITS Fund Short UCITS Fund Short UCITS Fund*
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
Notes USD USD USD USD
Assets
Financial assets at fair value through profit or loss:
Investment in transferable securities 8 65,172,090 68,315,352 9,404,746 8,747,642
Investment in financial derivative instruments 9 & 10 - - 11,610 74,411
Cash at bank 5 1,723,207 298,661 7,135,444 5,394,570
Amount receivable on sale of securities 2 21,757 4,123,990 10,537 109,519
Amount receivable on subscriptions 2 - 264,969 - -
Interest and dividends receivable 2 340,174 379,137 6,619 4,955
Receivable from investment manager 3 17,358 - 29,349 42,716
Prepaid expenses 412 4,835 729 27,289
Total assets 67,274,998 73,386,944 16,599,034 14,401,102
Liabilities
Financial liabilities at fair value through profit or loss:
Investment in financial derivative instruments liabilities 9 & 10 - - 99,260 329,959
Amount payable on purchase of securities 2 939,700 94,133 598,203 48,241
Amount payable on redemptions 2 185,543 3,148,268 - -
Investment management fees payable 3 43,231 75,756 8,059 -
Performance fees payable 3 - - 123,445 -
Administration fees payable 3 8,073 8,423 5,049 5,017
Transfer agency fees payable 3 3,894 1,380 815 1,025
Directors’ fees payable 3 1,820 1,885 331 -
Depositary and depositary oversight fees payable 3 5,003 1,830 4,422 6,880
Audit and tax fees payable 3 10,891 11,500 10,891 8,449
Other accrued expenses and liabilities 15,334 12,005 37,290 91,133
Total liabilities (excluding amounts attributable
to holders of redeemable participating shares) 1,213,489 3,355,180 887,765 490,704
Net assets attributable to holders of redeemable
participating shares 14 66,061,509 70,031,764 15,711,269 13,910,398
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations.
* Launched on 26 August 2015.
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STATEMENTS OF FINANCIAL POSITION (continued) As at 31 December 2016
Brookfield Brookfield Brookfield Brookfield
US Listed US Listed Global Listed Global Listed
Real Estate Real Estate Infrastructure Long Infrastructure Long
UCITS Fund UCITS Fund Short UCITS Fund Short UCITS Fund*
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
Number of shares in issue
Shares In Issue E Class 814,330.76 549,648.31 762,007.69 750,000.00
Net Asset Value Per Share E Class USD 34.96 USD 32.80 USD 20.64 USD 18.55
Shares In Issue Q Class 5,050,528.15 7,161,994.60 - -
Net Asset Value Per Share Q Class JPY 867.76 JPY 873.34 - -
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations.
* Launched on 26 August 2015.
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STATEMENTS OF FINANCIAL POSITION (continued)
As at 31 December 2016
Brookfield Brookfield
Real Assets Real Assets
Securities Securities
UCITS Fund UCITS Fund* Total Total
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
Notes USD USD USD USD
Assets
Financial assets at fair value through profit or loss:
Investment in transferable securities 8 67,916,230 58,379,473 968,211,198 888,919,809 Investment in financial derivative instruments
9 & 10 - 27,487 315,163 101,898
Cash at bank 5 2,148,146 5,013,158 19,188,826 13,982,728
Amount receivable on sale of securities 2 200,933 124,129 980,217 23,972,199 Amount receivable on subscriptions
2 - - 3,963,459 1,314,680
Interest and dividends receivable 2 334,070 393,702 3,297,547 3,554,435
Receivable from investment manager 3 38,166 25,124 84,873 284,106
Prepaid expenses - 20,974 58,328 64,934
Total assets 70,637,545 63,984,047 996,099,611 932,194,789
Liabilities
Financial liabilities at fair value through profit or loss:
Investment in financial derivative instruments liabilities 9 & 10 - - 99,265 329,959
Amount payable on purchase of securities 2 211,793 757,114 7,414,096 5,597,817
Amount payable on redemptions 2 509,411 - 2,270,155 19,032,990
Investment management fees payable 3 48,268 62,123 721,017 775,717
Performance fees payable 3 - - 123,445 -
Administration fees payable 3 5,377 5,714 41,628 41,491
Transfer agency fees payable 3 872 828 12,193 5,993
Directors’ fees payable 3 1,509 - 21,094 21,441
Depositary and depositary oversight fees payable 3 21,741 1,170 65,648 31,858
Audit and tax fees payable 3 10,891 8,450 54,455 51,400
Other accrued expenses and liabilities 13,755 5,723 186,116 177,902
Total liabilities (excluding amounts attributable
to holders of redeemable participating shares) 823,617 841,122 11,009,112 26,066,568
Net assets attributable to holders of redeemable
participating shares 14 69,813,928 63,142,925 985,090,499 906,128,221
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations.
* Launched on 1 September 2015.
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STATEMENTS OF COMPREHENSIVE INCOME
For the financial year ended 31 December 2016 Brookfield Brookfield Brookfield Brookfield
Global Listed Global Listed Global Listed Global Listed
Infrastructure Infrastructure Real Estate Real Estate
UCITS Fund UCITS Fund UCITS Fund UCITS Fund
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
Notes USD USD USD USD
Income
Dividend income 2 24,540,781 21,033,210 6,417,902 6,862,260
Bank interest 2 26,821 845 4,517 -
Interest income 2 - - - -
Net realised and unrealised gain/(loss) on financial
assets and liabilities at fair value through profit or loss 6 54,117,532 (141,777,570) (3,438,852) (9,322,960)
Other income 9 - 1,068 -
Total income/(loss) 78,685,143 (120,743,515) 2,984,635 (2,460,700) Expenses
Investment management fees 3 5,867,933 5,834,175 1,439,506 1,819,213
Administration fees 3 86,727 84,850 50,926 50,941
Directors’ fees 3 56,387 37,572 14,222 21,657
Depositary and depositary oversight fees 3 168,009 179,374 92,751 114,191
Audit and tax fees 3 10,891 8,546 10,859 8,545
Transfer agency fees 3 34,873 40,158 30,369 23,508
Transaction costs 2 1,280,705 1,233,651 442,966 392,307
Other expenses 390,305 284,905 78,982 115,526
Total expenses 7,895,830 7,703,231 2,160,581 2,545,888
Investment manager subsidy 3 - (324,082) - (123,500)
Net Expenses 7,895,830 7,379,149 2,160,581 2,422,388
Profit/(loss) before taxation 70,789,313 (128,122,664) 824,054 (4,883,088)
Taxation
Withholding taxes 2 4,662,461 4,783,355 892,869 1,757,015
Increase/(decrease) in net assets attributable to holders
redeemable
of participating shares from operations after tax 66,126,852 66,126,852
(132,906,019) (68,815) (6,640,103)
Dividends to holders of redeemable participating shares 4 3,728,839 2,456,666 24,225 2,523,978 Increase/(decrease) in net assets attributable to holders
redeemable
of participating shares from operations 62,398,013 (135,362,685) (93,040) (9,164,081)
The accompanying notes form an integral part of these financial statements. There were no gains and losses other than those reflected above. All results above relate to continuing operations.
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STATEMENTS OF COMPREHENSIVE INCOME (continued) For the financial year ended 31 December 2016
Brookfield Brookfield Brookfield Brookfield
US Listed US Listed Global Listed Global Listed
Real Estate Real Estate Infrastructure Infrastructure
UCITS Fund UCITS Fund Long Short UCITS Fund
Long Short UCITS Fund*
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
Notes USD USD USD USD
Income
Dividend income 2 3,648,740 2,931,274 318,818 89,583
Bank interest 2 1,620 36 10,134 427
Interest income 2 - - 9,881 -
Net realised and unrealised gain/(loss) on financial
assets and liabilities at fair value through profit or loss 6 3,622,355 (9,580,250) 1,955,737 (959,853)
Other income 70 - 6,584 -
Total income/(loss) 7,272,785 (6,648,940) 2,301,154 (869,843) Expenses
Investment management fees 3 648,204 652,420 224,000 76,268
Performance fees 3 - - 123,445 -
Administration fees 3 50,044 50,400 43,967 10,662
Directors’ fees 3 7,018 14,772 4,348 239
Depositary and depositary oversight fees 3 34,566 26,522 22,869 11,355
Audit and tax fees 3 10,856 8,545 12,802 8,427
Transfer agency fees 3 33,333 23,694 7,403 2,845
Transaction costs 2 223,136 135,088 42,374 40,151
Other expenses 56,045 97,461 298,878 86,188
Total expenses 1,063,202 1,008,902 780,086 236,135 Investment manager subsidy 3 (25,000) (57,584) (114,517) (58,861)
Net Expenses 1,038,202 951,318 665,569 177,274
Profit/(loss) before taxation 6,234,583 (7,600,258) 1,635,585 (1,047,117)
Taxation
Withholding taxes 2 703,319 1,072,093 84,714 42,485
Increase/(decrease) in net assets attributable to holders of participating shares from operations after tax 5,531,264 (8,672,351) 1,550,871 (1,089,602)
Dividends to holders of redeemable participating shares 4 1,866,662 1,934,849 - - Increase/(decrease) in net assets attributable to holders
of participating shares from operations 3,664,602 (10,607,200) 1,550,871 (1,089,602)
The accompanying notes form an integral part of these financial statements. There were no gains and losses other than those reflected above. All results above relate to continuing operations. * Launched on 26 August 2015.
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STATEMENTS OF COMPREHENSIVE INCOME (continued) For the financial year ended 31 December 2016
Brookfield Brookfield
Real Assets Real Assets
Securities Securities
UCITS Fund UCITS Fund* Total Total
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
Notes USD USD USD USD
Income
Dividend income 2 2,004,929 375,192 36,931,170 31,291,519
Bank interest 2 6,601 122 49,693 1,430
Interest income 2 742,829 215,913 752,710 215,913
Net realised and unrealised gain/(loss) on financial
assets and liabilities at fair value through profit or loss 6 4,938,626 (3,162,678) 61,195,398 (164,803,311)
Other income - - 7,731 -
Total income/(loss) 7,692,985 (2,571,451) 98,936,702 (133,294,449) Expenses
Investment management fees 3 574,002 111,806 8,753,645 8,493,882
Performance fees 3 - - 123,445 -
Administration fees 3 37,356 11,004 269,020 207,857
Directors’ fees 3 7,410 380 89,385 74,620
Depositary and depositary oversight fees 3 141,728 16,486 459,923 347,928
Audit and tax fees 3 12,854 8,450 58,262 42,513
Transfer agency fees 3 7,281 1,948 113,259 92,153
Transaction costs 2 134,262 50,170 2,123,443 1,851,367
Other expenses 87,671 17,393 911,881 601,473
Total expenses 1,002,564 217,637 12,902,263 11,711,793 Investment manager subsidy 3 (141,169) (31,710) (280,686) (595,737)
Net Expenses 861,395 185,927 12,621,577 11,116,056
Profit/(loss) before taxation 6,831,590 (2,757,378) 86,315,125 (144,410,505)
Taxation
Withholding taxes 2 461,018 99,697 6,804,381 7,754,645
Increase/(decrease) in net assets attributable to holders of participating shares from operations after tax 6,370,572 (2,857,075) 79,510,744 (152,165,150)
Dividends to holders of redeemable participating shares 4 - - 5,619,726 6,915,493 Increase/(decrease) in net assets attributable to holders
of participating shares from operations 6,370,572 (2,857,075) 73,891,018 (159,080,643)
The accompanying notes form an integral part of these financial statements. There were no gains and losses other than those reflected above. All results above relate to continuing operations. * Launched on 1 September 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
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STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES
For the financial year ended 31 December 2016
Brookfield Brookfield Brookfield Brookfield
Global Listed Global Listed Global Listed Global Listed
Infrastructure Infrastructure Real Estate Real Estate
UCITS Fund UCITS Fund UCITS Fund UCITS Fund
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
USD USD USD USD
Net assets attributable to holders of redeemable participating shares at the beginning of the financial year 566,836,698 543,435,745 192,206,436 186,618,019
Profit/(loss) attributable to holders of redeemable participating shares from operations 62,398,013 (135,362,685) (93,040) (9,164,081) Capital Transactions Issue of redeemable participating shares during the financial year EUR B class 62,827,752 170,045,425 2,547,955 2,628,556 USD E class 582,633 124,238,061 63,340,096 66,469,523 USD F class 18,211,567 52,470,189 2,290,438 3,025,663 USD M class 78,543 50,000 - - EUR I class* - - 44,331,901 - Redemption of redeemable participating shares during the financial year EUR B class (39,721,280) (51,168,182) (1,230,795) (1,725,574) USD E class (16,380,815) (131,363,595) (41,554,373) (28,145,670) USD F class (21,385,068) (5,285,790) (58,033,284) (27,500,000) USD M class (402,145) (222,470) - - EUR I class* - - (3,347,439) - Net assets attributable to holders of redeemable participating shares at the end of the financial year 633,045,898 566,836,698 200,457,895 192,206,436
Redeemable participating shares in issue at beginning of the financial year 20,660,310 15,652,078 7,029,172 7,066,684
Shares issued during the financial year EUR B class 1,724,894 4,346,795 55,181 56,714 USD E class 21,324 4,099,662 1,928,073 1,988,156 USD F class 1,043,653 2,716,447 109,539 143,855 USD M class 5,523 2,927 - - EUR I class* - - 1,979,905 - Shares redeemed during the financial year EUR B class (1,082,271) (1,323,438) (28,162) (37,515) USD E class (572,821) (4,544,069) (1,307,275) (845,728) USD F class (1,176,267) (275,273) (3,083,516) (1,342,994) USD M class (27,813) (14,819) - - EUR I class* - - (147,723) - Redeemable participating shares in issue at the end of the financial year 20,596,532 20,660,310 6,535,194 7,029,172
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations. * Launched on 25 May 2016.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
31
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES (continued) For the financial year ended 31 December 2016
Brookfield Brookfield Brookfield Brookfield
US Listed US Listed Global Listed Global Listed
Real Estate Real Estate Infrastructure Infrastructure
UCITS Fund UCITS Fund Long Short UCITS Fund
Long Short UCITS Fund*
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
USD USD USD USD
Net assets attributable to holders of redeemable
participating shares at the beginning of the financial year 70,031,764 61,894,728 13,910,398 -
Profit/(loss) attributable to holders of redeemable
participating shares from operations 3,664,602 (10,607,200) 1,550,871 (1,089,602) Capital Transactions
Issue of redeemable participating shares during the financial year
USD E class 71,414,139 29,866,964 250,000 15,000,000
JPY Q class 2,698,304 66,055,920 - -
Redemption of redeemable participating shares during the financial year
USD E class (63,219,348) (71,622,438) - -
JPY Q class (18,527,952) (5,556,210) - - Net assets attributable to holders of redeemable
participating shares at the end of the financial year 66,061,509 70,031,764 15,711,269 13,910,398
Redeemable participating shares in issue at
beginning of the financial year 7,711,643 1,762,347 750,000 -
Shares issued during the financial year
USD E class 2,048,117 862,834 12,008 750,000
JPY Q class 370,659 7,921,732 - -
Shares redeemed during the financial year
USD E class (1,783,435) (2,075,533) - -
JPY Q class (2,482,125) (759,737) - - Redeemable participating shares in issue at the
end of the financial year 5,864,859 7,711,643 762,008 750,000
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations. * Launched on 26 August 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
32
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES (continued)
For the financial year ended 31 December 2016
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations. * Launched on 1 September 2015. ** Launched on 25 May 2016.
Brookfield Brookfield
Real Assets Real Assets
Securities Securities
UCITS Fund UCITS Fund* Total Total
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015 USD USD USD USD
Net assets attributable to holders of redeemable
participating shares at the beginning of the financial year 63,142,925 - 906,128,221 791,948,492
Profit/(loss) attributable to holders of redeemable
participating shares from operations 6,370,572 (2,857,075) 73,891,018 (159,080,643) Capital Transactions
Issue of redeemable participating shares during the financial year
EUR B class - - 65,375,707 172,673,981
USD E class 1,156,141 66,000,000 136,743,009 301,574,548
USD F class - - 20,502,005 55,495,852
USD M class - - 78,543 50,000
JPY Q class - - 2,698,304 66,055,920
EUR I class** - - 44,331,901 -
Redemption of redeemable participating shares during the financial year
EUR B class - - (40,952,075) (52,893,756)
USD E class (855,710) - (122,010,246) (231,131,703)
USD F class - - (79,418,352) (32,785,790)
USD M class - - (402,145) (222,470)
JPY Q class - - (18,527,952) (5,556,210)
EUR I class** - - (3,347,439) - Net assets attributable to holders of redeemable
participating shares at the end of the financial year 69,813,928 63,142,925 985,090,499 906,128,221
Redeemable participating shares in issue at
beginning of the financial year 3,287,218 -
Shares issued during the financial year
USD E class 54,012 3,287,218
Shares redeemed during the financial year
USD E class (40,761) - Redeemable participating shares in issue at the
end of the financial year 3,300,469 3,287,218
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
33
STATEMENTS OF CASH FLOWS
For the financial year ended 31 December 2016 Brookfield Brookfield Brookfield Brookfield
Global Listed Global Listed Global Listed Global Listed
Infrastructure Infrastructure Real Estate Real Estate
UCITS Fund UCITS Fund UCITS Fund UCITS Fund
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
USD USD USD USD
Cash flows from operating activities Increase/(decrease) in net assets attributable to holders of
redeemable participating shares from operations 66,126,852 (132,906,019) (68,815) (6,640,103)
Adjustment to reconcile increase/(decrease) in net assets attributable to holders of redeemable participating shares from
operations to cash (used in)/provided by operating activities
Interest income (26,821) (845) (4,517) -
Dividend income (24,540,781) (21,033,210) (6,417,902) (6,862,260)
Tax expense 4,662,461 4,783,355 892,869 1,757,015
Operating profit/(loss) before working capital changes 46,221,711 (149,156,719) (5,598,365) (11,745,348)
Changes in operating assets and liabilities Net increase in investments in securities (67,669,698) (17,920,955) (4,874,640) (17,068,089)
Decrease/(increase) in receivable from sale of securities 12,499,741 (12,499,741) 6,367,830 (5,136,155)
Decrease/(increase) in receivable from investment manager 182,035 (132,622) 34,231 (9,264)
Decrease/(increase) in prepaid expenses 4,827 8,768 (50,178) 6,832
(Decrease)/increase in amount payable on purchase of securities (4,417,421) 3,318,452 5,383,492 (530,069)
Increase/(decrease) in investment manager fees payable 262 (19,411) (16,641) 3,154
Increase/(decrease) in administration fees payable 1,056 690 (264) 3
Increase/(decrease) in transfer agency fees payable 1,914 (188) 1,938 (188)
(Decrease)/increase in directors’ fees payable (339) 8,013 (1,783) (351) Increase/(decrease) in depositary and depositary oversight fees payable 10,499 (1,146) 2,005 694
Decrease in audit and tax fees payable (610) (2,136) (609) (2,137)
Increase/(decrease) other accrued expenses and liabilities 54,189 20,689 (3,493) (4,185) Cash (used in)/provided by operating activities (13,111,834) (176,376,306) 1,243,523 (34,485,103)
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
34
STATEMENTS OF CASH FLOWS (continued) For the financial year ended 31 December 2016
Brookfield Brookfield Brookfield Brookfield
Global Listed Global Listed Global Listed Global Listed
Infrastructure Infrastructure Real Estate Real Estate
UCITS Fund UCITS Fund UCITS Fund UCITS Fund
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
USD USD USD USD
Cash (used in)/provided by operating activities (continued)
Interest received 26,412 11 9,981 -
Dividend received 24,628,916 20,057,734 6,484,669 7,111,035
Taxation (4,662,461) (4,783,355) (892,869) (1,757,015)
Net cash provided by/(used in) operating activities 6,881,033 (161,101,916) 6,845,304 (29,131,083)
Cash flows from financing activities
Proceeds from issue of redeemable participating shares 80,893,215 347,453,095 110,403,922 81,761,755
Payment on redemptions of redeemable participating shares (82,503,670) (194,048,794) (113,861,050) (46,371,244)
Distribution to holders of redeemable participating shares (3,728,839) (6,629,096) (24,225) (12,590,896)
Net cash (used in)/provided by financing activities (5,339,294) 146,775,205 (3,481,353) 22,799,615
Net increase/(decrease) in cash 1,541,739 (14,326,711) 3,363,951 (6,331,468)
Cash at the start of the financial year 637,248 14,963,959 2,639,091 8,970,559
Cash at the end of the financial year 2,178,987 637,248 6,003,042 2,639,091
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
35
STATEMENTS OF CASH FLOWS (continued) For the financial year ended 31 December 2016
Brookfield Brookfield Brookfield Brookfield
US Listed US Listed Global Listed Global Listed
Real Estate Real Estate Infrastructure Long Infrastructure Long
UCITS Fund UCITS Fund Short UCITS Fund Short UCITS Fund*
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
USD USD USD USD
Cash flows from operating activities
Increase/(decrease) in net assets attributable to holders of
redeemable participating shares from operations 5,531,264 (8,672,351) 1,550,871 (1,089,602)
Adjustment to reconcile increase/(decrease) in net assets attributable to holders of redeemable participating shares from
operations to cash provided/(used in) by operating activities
Interest income (1,620) (36) (20,015) (427)
Dividend income (3,648,740) (2,931,274) (318,818) (89,583)
Tax expense 703,319 1,072,093 84,714 42,485
Operating profit/(loss) before working capital changes 2,584,223 (10,531,568) 1,296,752 (1,137,127)
Changes in operating assets and liabilities Net decrease/(increase) in investments in securities 3,143,262 (10,073,421) (825,002) (8,492,094)
Decrease/(increase) in receivable from sale of securities 4,102,233 (3,163,169) 98,982 (109,519)
(Increase)/decrease in receivable from investment manager (17,358) 17,722 13,367 (42,716)
Decrease/(increase) in prepaid expenses 4,423 8,768 26,560 (27,289)
Increase/(decrease) in amount payable on purchase of securities 845,567 (252,321) 549,962 48,241
(Decrease)/increase in investment manager fees payable (32,525) 8,479 8,059 -
Increase in performance fees payable - - 123,445 -
(Decrease)/increase in administration fees payable (350) - 32 5,017
Increase/(decrease) in transfer agency fees payable 2,514 (188) (210) 1,025
(Decrease)/increase in directors’ fees payable (65) (4,062) 331 - Increase/(decrease) in depositary and depositary oversight fees payable 3,173 483 (2,458) 6,880
(Decrease)/increase in audit and tax fees payable (609) (2,137) 2,442 8,449
Increase/(decrease) in other accrued expenses and liabilities 3,329 (14,120) (53,843) 91,133 Cash provided by/(used in) operating activities 10,637,817 (24,005,534) 1,238,419 (9,648,000) The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations. * Launched on 26 August 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
36
STATEMENTS OF CASH FLOWS (continued) For the financial year ended 31 December 2016
Brookfield Brookfield Brookfield Brookfield
US Listed US Listed Global Listed Global Listed
Real Estate Real Estate Infrastructure Long Infrastructure Long
UCITS Fund UCITS Fund Short UCITS Fund Short UCITS Fund*
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
USD USD USD USD
Cash provided by/(used in) operating activities (continued)
Interest received 1,503 - 21,016 (1,483)
Dividend received 3,687,820 3,101,926 316,153 86,538
Taxation (703,319) (1,072,093) (84,714) (42,485)
Net cash provided by/(used in) operating activities 13,623,821 (21,975,701) 1,490,874 (9,605,430)
Cash flows from financing activities
Proceeds from issue of redeemable participating shares 74,377,412 95,657,915 250,000 15,000,000
Payment on redemptions of redeemable participating shares (84,710,025) (74,030,380) - -
Distribution to holders of redeemable participating shares (1,866,662) (1,934,849) - -
Net cash (used in)/provided by financing activities (12,199,275) 19,692,686 250,000 15,000,000
Net increase/(decrease) in cash 1,424,546 (2,283,015) 1,740,874 5,394,570
Cash at the start of the financial year 298,661 2,581,676 5,394,570 -
Cash at the end of the financial year 1,723,207 298,661 7,135,444 5,394,570
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations. * Launched on 26 August 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
37
STATEMENTS OF CASH FLOWS (continued) For the financial year ended 31 December 2016
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations. * Launched on 1 September 2015.
Brookfield Brookfield
Real Assets Real Assets
Securities Securities
UCITS Fund UCITS Fund* Total Total
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
USD USD USD USD
Cash flows from operating activities
Increase/(decrease) in net assets attributable to holders of
redeemable participating shares from operations 6,370,572 (2,857,075) 79,510,744 (152,165,150)
Adjustment to reconcile increase/(decrease) in net assets attributable to
holders of redeemable participating shares from operations to cash
used in by operating activities
Interest income (749,430) (216,035) (802,403) (217,343)
Dividend income (2,004,929) (375,192) (36,931,170) (31,291,519)
Tax expense 461,018 99,697 6,804,381 7,754,645
Operating profit/(loss) before working capital changes 4,077,231 (3,348,605) 48,581,552 (175,919,367)
Changes in operating assets and liabilities
Net increase in investments in securities (9,509,270) (58,406,960) (79,735,348) (111,961,519)
(Increase)/decrease in receivable from sale of securities (76,804) (124,129) 22,991,982 (21,032,713)
(Increase)/decrease in receivable from investment manager (13,042) (25,124) 199,233 (192,004)
Decrease/(increase) in prepaid expenses 20,974 (20,974) 6,606 (23,895)
(Decrease)/increase in amount payable on purchase of securities (545,321) 757,114 1,816,279 3,341,417
(Decrease)/increase in investment manager fees payable (13,855) 62,123 (54,700) 54,345
Increase in performance fees payable - - 123,445 -
(Decrease)/increase in administration fees payable (337) 5,714 137 11,424
Increase/(decrease) in transfer agency fees payable 44 828 6,200 1,289
Increase/(decrease) in directors’ fees payable 1,509 - (347) 3,600
Increase in depositary and depositary oversight fees payable 20,571 1,170 33,790 8,081
Increase in audit and tax fees payable 2,441 8,450 3,055 10,489
Increase in other accrued expenses and liabilities 8,032 5,723 8,214 99,240 Cash used in operating activities (6,027,827) (61,084,670) (6,019,902) (305,599,613)
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
38
STATEMENTS OF CASH FLOWS (continued) For the financial year ended 31 December 2016
Brookfield Brookfield
Real Assets Real Assets
Securities Securities
UCITS Fund UCITS Fund* Total Total
31 Dec 2016 31 Dec 2015 31 Dec 2016 31 Dec 2015
USD USD USD USD
Cash used in operating activities (continued)
Interest received 606,191 215,924 665,103 214,452
Dividend received 2,207,800 (18,399) 37,325,358 30,338,834
Taxation (461,018) (99,697) (6,804,381) (7,754,645)
Net cash (used in)/provided by operating activities (3,674,854) (60,986,842) 25,166,178 (282,800,972)
Cash flows from financing activities
Proceeds from issue of redeemable participating shares 1,156,141 66,000,000 267,080,690 605,872,765
Payment on redemptions of redeemable participating shares (346,299) - (281,421,044) (314,450,418)
Distribution to holders of redeemable participating shares - - (5,619,726) (21,154,841)
Net cash provided by/(used in) financing activities 809,842 66,000,000 (19,960,080) 270,267,506
Net (decrease)/increase in cash (2,865,012) 5,013,158 5,206,098 (12,533,466)
Cash at the start of the financial year 5,013,158 - 13,982,728 26,516,194
Cash at the end of the financial year 2,148,146 5,013,158 19,188,826 13,982,728
The accompanying notes form an integral part of these financial statements. All results above relate to continuing operations. * Launched on 1 September 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016
39
1. The Company
Brookfield Investment Funds (UCITS) plc (the “Company”) is an open-ended investment company with variable capital organised under the laws of Ireland as a public limited company authorised in Ireland by the Central Bank as a UCITS pursuant to the Regulations. It was incorporated on 1 September 2011 with registration number 503109.
The Company is structured as an umbrella fund with segregated liability between sub-funds. The Company is an umbrella type collective investment vehicle comprising distinct sub-funds. The assets of a sub-fund are invested separately in accordance with the investment objectives and policies of that sub-fund which are set out in a supplement to the Prospectus. As at 31 December 2016 the Company had five active sub-funds (one inactive sub-fund), all denominated in USD:
Brookfield Global Listed Infrastructure UCITS Fund
Brookfield Global Listed Real Estate UCITS Fund
Brookfield US Listed Real Estate UCITS Fund
Brookfield Global Listed Infrastructure Long Short UCITS Fund
Brookfield Real Assets Securities UCITS Fund
Brookfield Real Assets Debt UCITS Fund
Brookfield Global Listed Infrastructure Long Short UCITS Fund and Brookfield Real Assets Securities UCITS Fund launched on 26 August 2015 and 1 September 2015 respectively. Brookfield Real Assets Debt UCITS Fund is not currently available for purchase.
With the prior approval of the Central Bank, the Company may from time to time create such additional sub-funds as the Directors may deem appropriate. Details of any such sub-fund or sub-funds created in the future shall be as set out in the applicable Supplement in accordance with the requirements of the Central Bank.
As stated in the Prospectus, a Business Day is defined as any day (except Saturdays, Sundays and public holidays in Dublin and New York) on which retail banks in Dublin and New York are open for business or such other day or days as may be determined by the Directors. As 31 December 2016 was a weekend day, the last Business Day was 30 December 2016. This was the date used to strike the Net Asset Value (“NAV”) upon which the financial statements are based.
The objective of each sub-fund is as follows:
Brookfield Global Listed Infrastructure UCITS Fund The sub-fund seeks total return through growth of capital and current income. The sub-fund seeks to achieve its investment objective by investing primarily in securities of infrastructure companies listed or traded on a recognised market.
Brookfield Global Listed Real Estate UCITS Fund The sub-fund seeks total return through growth of capital and current income. The sub-fund seeks to achieve its investment objective by investing primarily in real estate investment trusts (REITs) and other related securities issued by U.S. and non-U.S. real estate companies. Brookfield US Listed Real Estate UCITS Fund The sub-fund seeks total return through growth of capital and current income. The sub-fund seeks to achieve its investment objective by investing primarily in real estate investment trusts (REITs) and other related securities issued by U.S. real estate companies.
Brookfield Global Listed Infrastructure Long Short UCITS Fund The sub-fund seeks to generate high risk-adjusted absolute returns with low correlation to the broad equity and fixed income markets. The sub-fund seeks to achieve its investment objective by taking long and short positions primarily in equity securities of publicly traded infrastructure companies throughout the world. These include publicly traded securities of infrastructure companies whose primary operations or principal trading market are in non-U.S. markets.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
40
1. The Company (continued)
Brookfield Real Assets Securities UCITS Fund The sub-fund seeks total return, which is targeted to be in excess of inflation, through growth of capital and current income. The sub-fund seeks to achieve its investment objective by investing at least 80% of its net assets in both equity and fixed income securities of “real assets” asset classes, in the following categories, all of which will be listed or traded on a recognised market: real estate securities, infrastructure securities; and natural resources securities.
Brookfield Real Assets Debt UCITS Fund The sub-fund seeks total return, which is targeted to be in excess of inflation, through current income and growth of capital. Under normal market conditions, the sub-fund will seek to achieve its investment objective by investing at least 80% of its net assets in fixed income securities of “real assets” asset classes in the following categories, all of which will be listed or traded on a Recognised Market: Real Estate Securities, Infrastructure Securities and Natural Resources Securities. The sub-fund is not launched as of 31 December 2016.
2. Significant Accounting Policies
Basis of Preparation The financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, the requirements of the Companies Act 2014, the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 and Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1)) (Undertakings for Collective Investment in Transferable Securities) Regulations, 2015 (the “UCITS Regulations”).
Financial assets and liabilities at fair value through profit or loss (i) Classification The Company designated its assets and liabilities as Financial Assets and Liabilities at Fair Value through profit or loss. The category of financial assets and liabilities at fair value through profit or loss is as follows:
Financial Assets and Liabilities held for trading: These include equity instruments, bonds and mortgage backed securities that are acquired or incurred principally for the purpose of generating a profit from short-term fluctuation in price. Derivatives are categorised as held for trading, as the Company does not designate any derivatives as hedges for hedge accounting purposes.
(ii) Initial Measurement Purchases and sales of financial instruments are accounted for at trade date. Realised gains and losses on disposal of financial instruments are calculated using the total weighted average cost method.
Financial instruments categorised at fair value through profit or loss are measured initially at fair value, with transaction costs for such instruments being recognised directly in the Statements of Comprehensive Income.
(iii) Subsequent Measurement
After initial measurement, the Company measures financial instruments classified as fair value through profit or loss on the Statements of Comprehensive Income. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction. The fair value of financial instruments is based on their quoted market prices on a recognised exchange or sourced from a reputable broker/counterparty in the case of non-exchange traded instruments, at the Statements of Financial Position date without any deduction for estimated future selling costs.
(iv) Derecognition The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire or the Company transfers the financial asset and the transfer qualifies for derecognition in accordance with IAS 39 Financial Instruments: Recognition and Measurement. The Company derecognises a financial liability when the obligation specified in the contract is discharged, cancelled or expires.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
41
2. Significant Accounting Policies (continued)
(iv) Derecognition (continued) Assets held for trading that are sold are derecognised and corresponding receivables from the buyer for the payment are recognised as of the date the Company commits to sell the assets. The Company uses the average cost method to determine the gain or loss on derecognition.
Valuation Principles The value of any investment which is quoted, listed or normally dealt in on a regulated market shall be calculated at the last trade price. Investments quoted, listed or normally dealt in on more than one market shall be calculated at the last traded price on the market, that in the opinion of the Directors provides the principal market for such investment. When prices are not available for any reason, or such prices are deemed to not represent fair value, the value thereof shall be the probable realisation value which must be estimated in good faith by such competent person as may be appointed by the Directors and approved for the purpose by the Depositary.
The fair value of financial instruments traded in active markets (for example bonds, debt securities, equities and similar assets) were recorded based on quoted market prices as at 31 December 2016.
For all other financial instruments not traded in an active market, the fair value is determined by using appropriate valuation techniques. Valuation techniques include: using recent arm’s length market transactions; reference to the current market value of another instrument that is substantially the same; discounted cash flow analysis and option pricing models making as much use of available and supportable market data as possible.
Forward Currency Contracts The fair value of open foreign currency contracts is calculated as the difference between the contracted rate and the current forward rate that would close out the contract on the valuation date. For each relevant sub-fund, gains or losses on open forward currency contracts are included in investments in financial derivative instruments in the Statements of Financial Position.
Contracts for Difference Off-exchange derivative contracts are valued by the counterparty at least daily. The valuation must be approved or verified weekly by a third party who is independent of the counterparty and who is approved for the purpose by the Depositary. For each relevant sub-fund, gains or losses on contracts for difference are included in investments in financial derivative instruments in the Statements of Financial Position.
Term Loans Each sub-fund may borrow amounts by way of short term loans not exceeding 10% of its net assets provided that such borrowing is on a temporary basis. Term loans are valued by an external third party. For each relevant sub-fund, gains or losses on term loans are included in investments in transferable securities in the Statements of Financial Position.
Income Dividends are recognised as income on the dates that the related investment is first quoted ‘ex-dividend’ to the extent information thereon is reasonably available. Interest income and interest expense are recognised on an accruals basis in line with the contractual terms. Interest is accrued on a daily basis.
Realised and Unrealised Gains/(Losses) on Investments Realised gains and losses on disposal of investments during the financial year and the change in unrealised gains and losses on valuation of investments held at financial year ended are dealt with in the Statements of Comprehensive Income.
Fees and Charges All expenses are recognised in the Statements of Comprehensive Income on an accruals basis.
Foreign Currency Items included in the Company’s financial statements are measured using the currency of the primary economic environment in which it operates (the functional currency). As at 31 December 2016 this was USD.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
42
2. Significant Accounting Policies (continued)
Foreign Currency (continued) Transactions in foreign currencies were translated at the foreign currency exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies were translated to USD at the foreign currency closing exchange rate at the dates that the values were determined. Income and expenses were translated at the daily average exchange rates. Foreign currency exchange differences relating to investments at fair value through profit or loss were included in the net realised and unrealised gain on financial assets and liabilities at fair value through profit or loss in the Statements of Comprehensive Income. All other foreign currency exchange differences relating to monetary items, including cash, are presented in the Statements of Comprehensive Income. Taxation Under current law and practice, the Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act of 1997, as amended. On that basis, it is not chargeable to Irish tax on its income or gains.
However, Irish tax may arise on the happening of a ‘chargeable event’. A chargeable event includes any distribution payments to shareholders or any encashment, redemption, cancellation or transfer of redeemable participating shares.
No Irish tax will arise on the Company in respect of chargeable events in respect of: (a) a shareholder who is neither Irish resident nor ordinarily resident in Ireland for tax purposes, at the
time of the chargeable event, provided appropriate valid declarations in accordance with the provisions of the Taxes Consolidation Act of 1997, as amended, are held by the Company; and
(b) certain exempted Irish tax resident shareholders who have provided the Company with the necessary signed statutory declarations.
Dividends, interest and capital gains (if any) received on investments made by the Company may be subject to withholding taxes imposed by the country from which the investment income/gains are received and such taxes may not be recoverable by the Company or its shareholders.
Redeemable participating shares Redeemable participating shares are redeemable at the shareholder’s option and are classified as financial liabilities.
The redeemable participating shares can be put back to the Company on any dealing day for cash equal to a proportionate share of the Company’s Net Asset Value. Transaction costs Transaction costs include fees and commissions paid to agents, advisers, brokers and dealers, levies by regulatory agencies and security exchanges, and transfer taxes and duties. Transaction costs do not include debt premiums or discounts, financing costs or internal administrative or holding costs. These are expensed though the Statements of Comprehensive Income as incurred.
Receivables and payables Receivables and payables represent amounts receivable and payable for transactions contracted but not yet delivered.
Receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Receivables are recognised initially at fair value plus transaction costs that are directly attributable to their acquisition origination. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment.
Payables are recognised initially at fair value and subsequently stated at amortised cost using the effective interest method. The difference between the proceeds and the amounts payable are recognised over the period of the payable using the effective interest method.
Contingent assets A contingent asset is defined as a possible asset that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
43
2. Significant Accounting Policies (continued)
Dividends Dividends may be paid at the Directors’ discretion. Details of any change in dividend policy will be provided by amending the Prospectus or the applicable Supplement. For further details of dividends paid during the financial year please refer to note 4.
New standards, amendments and interpretations issued but not effective and not yet adopted A number of new standards, amendments to standards and interpretations in issue are not yet effective, and have not been applied in preparing these financial statements. None of these are currently expected to have a material effect on the financial statements of the Company except the following set out below:
IFRS 9, ‘Financial instruments’, effective for annual periods beginning on or after 1 January 2018, specifies how an entity should classify and measure financial assets and liabilities, including some hybrid contracts. The standard improves and simplifies the approach for classification and measurement of financial assets compared with the requirements of IAS 39. Most of the requirements in IAS 39 for classification and measurement of financial liabilities were carried forward unchanged. The standard applies a consistent approach to classifying financial assets and replaces the numerous categories of financial assets in IAS 39, each of which had its own classification criteria. IFRS 9 is not expected to have a significant impact on the Company’s measurement basis, financial position or performance, as it is expected that the Company will continue to classify its financial assets and financial liabilities (both long and short) as being at fair value through profit or loss.
3. Fees
Investment Management Fee Under the provisions of the investment management agreement, the Company will pay Brookfield Investment Management Inc. (the Investment Manager) a fee in respect of its duties as investment manager at an agreed upon percentage of the closing Net Asset Value of the relevant sub-fund (plus VAT, if any) prior to the accrual of the investment management fee as of each Valuation Date. The investment management fee will accrue on and will be reflected in the Net Asset Value calculated on each Valuation Date and will be paid monthly in arrears.
The Investment Manager shall also be entitled to be repaid all of its reasonable out of pocket expenses incurred in the performance of its duties under the investment management agreement.
The Investment Management fees charged for the financial year amounted to USD 8,753,645 (31 December 2015: USD 8,493,882). Fees of USD 721,017 (31 December 2015: USD 775,717) were outstanding at financial year end.
The Investment Manager has voluntarily agreed to waive all or a portion of its management fees and/or reimburse certain expenses of each sub-fund to the extent necessary to maintain the sub-funds’ total expense ratios (excluding brokerage commissions and other transactional expenses, interest, taxes and extraordinary expenses, such as litigation; and other expenses not incurred in the ordinary course of each sub-fund’s business) at no more than the expense caps listed in the table below. This fee waiver and expense reimbursement arrangement is voluntary which the Investment Manager may terminate in its sole discretion at any time. Please refer to the Company’s prospectus, supplementary prospectus and Key Investor Information Document (KIID) available at www.brookfield.com for further details of any charges that may be applied to an investment in each sub-fund.
Fund Name Investment
Management Fees Expense
Cap
Brookfield Global Listed Infrastructure UCITS Fund
- Share B Class, E Class and F Class 0.95% 1.15%
- Share M Class 1.80% 2.00%
Brookfield Global Listed Real Estate UCITS Fund 0.85% 1.05%
Brookfield US Listed Real Estate UCITS Fund
- Share E Class 0.85% 1.05%
- Share Q Class 0.75% 0.95%
Brookfield Global Listed Infrastructure Long Short UCITS Fund* 1.50% 1.70%
Brookfield Real Assets Securities UCITS Fund 0.85% 1.05%
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
44
3. Fees (continued)
Investment Management Fee (continued)
* In accordance with the provisions of the Investment Management Agreement, the Brookfield Global Listed Infrastructure Long Short UCITS Fund will pay the Investment Manager a fee of (a) up to 2.00% (with an expense cap of 2.20%) per annum if the Net Asset Value of the relevant Class of Shares is less than USD 1,000,000 or (b) up to 1.50% (with an expense cap of 1.70%) per annum if the Net Asset Value of the relevant Class of Shares is greater than USD 1,000,000.
The Investment Manager fee for the financial year amounted to USD 280,686 (31 December 2015: USD 595,737). Fees reimbursements of USD 84,873 (31 December 2015: USD 284,106) were receivable from the Investment Manager at financial year end.
Administration and Transfer Agency Fee Under the provisions of the Administration Agreement, the Administrator is entitled to a fee for the provision of fund accounting and administrative services at a rate which will be set out in the Supplement for each sub-fund. The administration fee will accrue daily and will be paid monthly in arrears out of the assets of the sub-fund.
The Administrator shall also be entitled to be repaid out of the assets of the sub-fund all of its reasonable out-of-pocket expenses incurred on behalf of the sub-fund which shall include legal fees, couriers’ fees and telecommunication costs and expenses.
The Administrator is also entitled to receive an annual fee for the production of annual and semi-annual accounts, and the key investor information document (“KIID”), together with reasonable registrar and transfer agency transaction charges, at normal commercial rates, as may be agreed in writing between the Company and the Administrator from time to time.
The Administration and Transfer Agency fees charged for the financial year amounted to USD 269,020 (31 December 2015: USD 207,857) and USD 113,259 (31 December 2015: USD 92,153), respectively. Fees of USD 41,628 (31 December 2015: USD 41,491) and USD 12,193 (31 December 2015: USD 5,993), respectively were outstanding at financial year end.
Depositary and Depositary Oversight Fees Under the provisions of the Depositary Agreement, the Depositary is entitled to a fee for trustee and custody services at a rate which will be set out in the Supplement for each sub-fund. The Depositary and Depositary Oversight Fees will accrue daily and will be payable monthly in arrears out of the assets of the relevant sub-fund.
The Depositary shall be reimbursed all reasonable out-of-pocket expenses incurred by it on behalf of the sub-fund (such as telephone and fax expenses) including stamp duties and registration fees, banking maintenance fees and interbank transfer fees, and the fees and expenses of sub-custodians, at normal commercial rates.
Where the Depositary is required to carry out additional duties to those originally agreed, including the provision of additional reports, amending the structure of a sub-fund or its documentation or terminating a sub-fund or winding up the Company, and this requires additional work to be performed by or review of the documents by the Depositary, the Depositary will be entitled to charge additional fees at a rate as may be agreed in advance with the Directors. Shareholders will be notified of any increase in depositary fees due to such additional work before such increase takes effect.
The Depositary and Depositary Oversight fees charged for the financial year amounted to USD 459,923 (31 December 2015: USD 347,928). The Depositary and Depositary Oversight fees outstanding at financial year end were USD 65,648 (31 December 2015: USD 31,858).
Directors’ fees The Directors’ fees charged during the financial year were USD 89,385 (31 December 2015: USD 74,620) of which USD 21,094 (31 December 2015: USD 21,441) was payable at financial year end.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
45
3. Fees (continued)
Audit and tax fees The below table discloses audit remuneration fees for the financial year.
31 December 31 December
2016 2015
USD USD Audit (ex-VAT and applicable out-of-pocket expenses) 44,800 43,200
Other assurance - -
Tax advisory - -
Other non-audit - -
44,800 43,200
Audit fees of EUR 42,500 (31 December 2015: EUR 39,750) were payable at financial year end. Performance fees
Under the provisions of the Investment Management Agreement, the Investment Manager will also be entitled to a performance fee (the “performance fee”) which will accrue on each Valuation Date, will be reflected in each Net Asset Value calculation and will be paid annually in arrears, as described below. At the end of each calendar period (the “performance period”), a performance fee will be paid by Brookfield Global Listed Infrastructure Long Short UCITS Fund (the “Fund”) to the Investment Manager in an amount equal to, in the aggregate, twenty per cent of the (realised and unrealised) increase (if any) in the Net Asset Value per Share (calculated before any accrual for performance fees) of each Class of Shares multiplied by the number of Shares outstanding for each Class of Shares, subject to a high water mark and net of any fees and expenses of the Fund during that calendar year. The performance fee will be calculated separately for each Class of Shares of the Company, and in turn will reduce the Net Asset Value per Share of such Classes of Shares accordingly. A high water mark will be employed so that no performance fee will be allocated in relation to any Shares until any decline in the Net Asset Value per Share of those Shares in any prior calendar year is offset by subsequent increases of the Net Asset Value per Share of such Shares.
The high water mark in respect of the first performance period shall be the Net Asset Value per Share of the relevant Class as at the relevant Closing Date (the “Initial Net Asset Value”) and, for each subsequent performance period, shall be the higher of (i) the Initial Net Asset Value per Share; and (ii) the Net Asset Value per Share of the relevant Class at the end of the first performance period or any performance period thereafter in respect of which a performance fee was charged. The performance fee shall be deemed to accrue on each Valuation Date. If a Shareholder redeems Shares from the Company other than at the end of the calendar year, such Shareholder will bear a pro-rata proportion of the performance fee accrued at the Valuation Date in respect of the relevant Redemption Date because the pro-rata performance fee will be included as an accrual in the Net Asset Value per Share of the Shares being redeemed by such Shareholder. Because the Fund’s assets are generally recorded in its financial accounts at their market value, the performance fee will reflect any net changes in unrealised appreciation or depreciation in the value of the Fund’s assets as of the close of each fiscal year as well as gains and losses realised during the year and net investment income or loss. Shareholders should note that the performance fee is based on net realised and net unrealised profits and losses of the Fund as at the end of the calendar year and, as a result, performance fees may be paid on unrealised profits which may subsequently never be realised. The Directors may in the future establish new Classes of Shares, which may be charged higher or lower investment management and/or performance fees by the Investment Manager. For the avoidance of doubt, the first performance period will commence on the Business Day immediately following the relevant Closing Date and will end on the last Business Day of December 2016.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
46
3. Fees (continued)
The Administrator will keep a record to ensure that the appropriate amount of the performance fee is borne by each Shareholder. Performance fees will be verified by the Depositary. Performance fees charged for the financial year amounted to USD 123,445 (31 December 2015: USD Nil). Fees of USD 123,445 were outstanding at financial year end (31 December 2015: USD Nil).
4. Dividends
The Articles permit the Directors to declare on the Shares or on any class of Shares such dividends, including interim dividends, as appear to the Directors to be justified. The Directors may, with the sanction of the Company in a general meeting, satisfy any dividend due to holders of the Shares, in whole or in part, by distributing to them in specie any of the assets of the Company and, in particular, any investments to which the Company is entitled provided that, where the share capital is divided into different classes of Shares, any such distributions to the holders of one class of Shares shall not materially prejudice the interests of the holders of the other classes of Shares. Alternatively, if a holder does not wish to receive a dividend by way of in specie distribution, it may require the Directors to realise such investments necessary in order to effect the relevant distribution.
Any dividend unclaimed after a financial year of six periods from the date of declaration of such dividend shall be forfeited and shall revert to the relevant sub-fund.
Dividends were declared with ex-dates shown below in respect of the following Sub-Funds:
Brookfield Global Listed Infrastructure UCITS Fund - Class F
31 December 2016 31 December 2015 Ex-date Rate Ex-date Rate
21 March 2016 USD 0.1663 19 June 2015 USD 0.2042 20 June 2016 USD 0.1825 21 September 2015 USD 0.1796
21 September 2016 USD 0.1867 21 December 2015 USD 0.1614 21 December 2016 USD 0.1776
Brookfield Global Listed Real Estate UCITS Fund - Class F
31 December 2016 31 December 2015 Ex-date Rate Ex-date Rate
21 March 2016 USD 0.2043 19 June 2015 USD 0.2173 20 June 2016 USD 0.2133 21 September 2015 USD 0.2030
21 September 2016 USD 0.2204 21 December 2015 USD 0.2035 21 December 2016 USD 0.2080
Brookfield US Listed Real Estate UCITS Fund - Class Q
31 December 2016 31 December 2015 Ex-date Rate Ex-date Rate
11 January 2016 USD 0.0244 9 February 2015 USD 0.0284 9 February 2016 USD 0.0220 9 March 2015 USD 0.0276
9 March 2016 USD 0.0235 9 April 2015 USD 0.0278 8 April 2016 USD 0.0244
8 May 2015 USD 0.0261
9 May 2016 USD 0.0251 9 June 2015 USD 0.0254 9 June 2016 USD 0.0248 9 July 2015 USD 0.0247 8 July 2016 USD 0.0263 7 August 2015 USD 0.0253
11 August 2016 USD 0.0272 9 September 2015 USD 0.0227 8 September 2016 USD 0.0271 9 October 2015 USD 0.0243 10 October 2016 USD 0.0250 9 November 2015 USD 0.0249 9 November 2016 USD 0.0235 9 December 2015 USD 0.0235 9 December 2016 USD 0.0242
Dividends of USD 3,728,839 (31 December 2015: USD 2,456,666) on the Brookfield Global Listed Infrastructure UCITS Fund – Class F and USD 24,225 (31 December 2015: USD 2,523,978) on the Brookfield Global Listed Real Estate UCITS Fund – Class F were paid for the financial year ended 31 December 2016. Dividends of USD 1,866,662 (31 December 2015: USD 1,934,849) on the Brookfield US Listed Real Estate UCITS Fund – Class Q were paid for the financial year ended 31 December 2016. There were no dividends payable as at 31 December 2016 (31 December 2015: USD Nil).
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
47
5. Cash
Cash balances were held with RBC Investor Services Bank S.A. Cash balances held as collateral were held with BNP Paribas and JP Morgan.
As at 31 December 2016, the following were the cash balances and cash balances held as collateral:
Brookfield Global Listed Infrastructure
UCITS Fund
Brookfield Global Listed Real Estate
UCITS Fund
Brookfield US Listed Real Estate
UCITS Fund
31 December 2016 31 December 2016 31 December 2016
USD USD USD Cash 2,178,987 6,003,042 1,723,207
Total Cash at bank 2,178,987 6,003,042 1,723,207
Brookfield Global Listed Infrastructure
Long Short UCITS Fund
Brookfield Real Assets Securities
UCITS Fund
31 December 2016 31 December 2016
USD USD Cash 2,985,444 2,148,146 Cash balances held as collateral
BNP Paribas 2,950,000 -
JP Morgan 1,200,000 -
Total Cash at bank 7,135,444 2,148,146
As at 31 December 2015, the following were the cash balances and cash balances held as collateral:
Brookfield Global Listed Infrastructure
UCITS Fund
Brookfield Global Listed Real Estate
UCITS Fund
Brookfield US Listed Real Estate
UCITS Fund
31 December 2015 31 December 2015 31 December 2015
USD USD USD Cash 637,248 2,639,091 298,661
Total Cash at bank 637,248 2,639,091 298,661
Brookfield Global Listed Infrastructure
Long Short UCITS Fund
Brookfield Real Assets Securities
UCITS Fund
31 December 2015 31 December 2015
USD USD Cash 3,554,570 4,753,158 Cash balances held as collateral
JP Morgan 1,840,000 260,000
Total Cash at bank 5,394,570 5,013,158
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
48
6. Net gains/(losses) on financial instruments at fair value through profit or loss
Realised Unrealised
For the financial year ended 31 December 2016 gains/(losses) gains/(losses) Total
USD USD USD
Brookfield Global Listed Infrastructure UCITS Fund
Common stocks (19,324,436) 74,020,202 54,695,766
Forward currency contracts (403,076) - (403,076)
Foreign exchange - (175,158) (175,158)
(19,727,512) 73,845,044 54,117,532
Brookfield Global Listed Real Estate UCITS Fund
Common stocks (5,583,904) 4,921,020 (662,884)
Corporate bonds 8 - 8
Forward currency contracts (3,046,968) 303,548 (2,743,420)
Foreign exchange - (32,556) (32,556)
(8,630,864) 5,192,012 (3,438,852)
Brookfield US Listed Real Estate UCITS Fund
Common stocks 370,725 3,302,702 3,673,427
Corporate bonds 2 - 2
Foreign exchange - (51,074) (51,074)
370,727 3,251,628 3,622,355
Brookfield Global Listed Infrastructure Long Short UCITS Fund
Common stocks 851,329 1,231,702 2,083,031
CFD - Equities (287,552) 167,922 (119,630)
Forward currency contracts (7,689) (24) (7,713)
Foreign exchange - 49 49
556,088 1,399,649 1,955,737
Brookfield Real Assets Securities UCITS Fund
Common stocks 2,462,358 1,209,934 3,672,292
Corporate bonds (50,834) 1,080,138 1,029,304
Term loans 67,821 72,536 140,357
CFD - Equities 157,399 (27,487) 129,912
Forward currency contracts (14,099) - (14,099)
Foreign exchange - (19,140) (19,140)
2,622,645 2,315,981 4,938,626
For the financial year ended 31 December 2015
Brookfield Global Listed Infrastructure UCITS Fund
Common stocks (46,610,538) (94,402,957) (141,013,495)
Forward currency contracts 71,369 - 71,369
Foreign exchange - (835,444) (835,444)
(46,539,169) (95,238,401) (141,777,570)
Brookfield Global Listed Real Estate UCITS Fund
Common stocks 7,647,346 (16,878,544) (9,231,198)
Forward currency contracts 22,879 - 22,879
Foreign exchange - (114,641) (114,641)
7,670,225 (16,993,185) (9,322,960)
Brookfield US Listed Real Estate UCITS Fund
Common stocks 1,323,207 (10,713,007) (9,389,800)
Foreign exchange - (190,450) (190,450)
1,323,207 (10,903,457) (9,580,250)
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
49
6. Net gains/(losses) on financial instruments at fair value through profit or loss (continued)
Realised Unrealised
For the financial year ended 31 December 2015 gains/(losses) gains/(losses) Total
(continued) USD USD USD
Brookfield Global Listed Infrastructure Long Short UCITS Fund*
Common stocks (651,434) (132,650) (784,084)
CFD - Equities 105,092 (255,572) (150,480)
Forward currency contracts 13,563 24 13,587
Investment funds (21,435) - (21,435)
Foreign exchange - (17,441) (17,441)
(554,214) (405,639) (959,853)
Brookfield Real Assets Securities UCITS Fund**
Common stocks (534,020) (1,399,411) (1,933,431)
Corporate bonds (8,554) (1,093,229) (1,101,783)
CFD - Equities (120,521) 27,487 (93,034)
Investment Funds (4,695) - (4,695)
Foreign exchange - (29,735) (29,735)
(667,790) (2,494,888) (3,162,678)
* Launched on 26 August 2015.
** Launched on 1 September 2015. 7. Related Party Transactions
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making financial or operational decisions, or if the party is a member of the key management personnel of the entity or its parent. Brookfield Investment Management Inc., as the Investment Manager, earned a fee of USD 8,753,645 (31 December 2015: USD 8,493,882) of which USD 721,017 (31 December 2015: USD 775,717) was payable at financial year end. Performance fees earned by the Investment Manager for the financial year amounted to USD 123,445 (31 December 2015: USD Nil) of which USD 123,445 (31 December 2015: USD Nil) was payable at financial year end.
The Investment Manager Subsidy (capped fees) for the financial year amounted to USD 280,686 (31 December 2015: USD 595,737). Fees of USD 84,873 (31 December 2015: USD 284,106) were receivable from the Investment Manager at financial year end. Jonathan Tyras was the General Counsel, Chief Financial Officer and Managing Director of the Investment Manager as at 31 December 2016 (31 December 2015). Brookfield Asset Management Inc., Brookfield Investment Management (UK) Inc. and Century Property and Casualty Insurance Corporation are affiliates of the Investment Manager and are deemed to be related parties. As at 31 December 2016 and 31 December 2015, these entities held the following redeemable participating shares in each of the sub-funds:
Fund name Related Party Share Class
Quantity of Shares Held
31 December 2016
Quantity of Shares Held
31 December 2015
Brookfield Global Listed Real Estate UCITS Fund
Brookfield Investment Management (UK) Inc EUR B 5,000 5,000
Brookfield Global Listed Infrastructure Long Short UCITS Fund
Century Property and Casualty Insurance Corporation USD E 750,000 750,000
Brookfield Real Assets Securities UCITS Fund Brookfield Asset Management Inc USD E 500,000 500,000 Brookfield Real Assets Securities UCITS Fund
Century Property and Casualty Insurance Corporation USD E 750,000 750,000
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
50
8. Risk Associated with Financial Instruments
The sub-funds utilise various methods to value investments measured at fair value on a recurring and non recurring basis. The fair value hierarchy is categorised into three levels based on the inputs as follows: Level 1 – Valuations based on quoted prices in active markets for identical assets or liabilities; Level 2 – Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly (as prices) or indirectly (derived from prices); and Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Inputs are used in applying the various valuation techniques and broadly refer to the assumptions that market participants use to make valuation decisions, including assumptions about risk. Inputs may include price information, volatility statistics, specific and broad credit data, liquidity statistics, and other factors. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes ‘observable’ requires significant judgment by Company management. Company management considers observable data to be that market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The categorisation of a financial instrument within the hierarchy is based upon the pricing transparency of the instrument and does not necessarily correspond to Company management’s perceived risk of that instrument. Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, Company management’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. Company management uses prices and inputs that are current as of the measurement date, including periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many securities. This condition could cause a security to be reclassified to a lower level within the fair value hierarchy. The following tables summarise the inputs used to value the sub-funds’ financial instruments measured at fair value on a recurring and non-recurring basis as at 31 December 2016 and 31 December 2015: Brookfield Global Listed Infrastructure UCITS Fund
31 December 2016 Total (Level 1) (Level 2) (Level 3)
USD USD USD USD
Financial assets at fair value through profit or loss
Investments in transferable securities, at fair value
- Common stocks 629,055,748 629,055,748 - -
629,055,748 629,055,748 - -
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
51
8. Risk Associated with Financial Instruments (continued)
Brookfield Global Listed Real Estate UCITS Fund 31 December 2016 Total (Level 1) (Level 2) (Level 3) USD USD USD USD Financial assets at fair value through profit or loss
Investments in transferable securities, at fair value - Common stocks 196,662,384 196,662,384 - -
Investments in financial derivative instruments
- Forward currency contracts 303,553 - 303,553 -
196,965,937 196,662,384 303,553 -
Financial liabilities at fair value through profit or loss
Investments in financial derivative instruments
- Forward currency contracts (5) - (5) -
(5) - (5) -
Brookfield US Listed Real Estate UCITS Fund 31 December 2016 Total (Level 1) (Level 2) (Level 3) USD USD USD USD Financial assets at fair value through profit or loss
Investments in transferable securities, at fair value - Common stocks 65,172,090 65,172,090 - -
65,172,090 65,172,090 - -
Brookfield Global Listed Infrastructure Long Short UCITS Fund 31 December 2016 Total (Level 1) (Level 2) (Level 3) USD USD USD USD Financial assets at fair value through profit or loss
Investments in transferable securities, at fair value
- Common stocks 9,404,746 9,404,746 - -
Investments in financial derivative instruments - CFD - Equities 11,610 - 11,610 -
9,416,356 9,404,746 11,610 -
Financial liabilities at fair value through profit or loss Investments in financial derivative instruments - CFD - Equities (99,260) - (99,260) -
(99,260) - (99,260) -
Brookfield Real Assets Securities UCITS Fund Total (Level 1) (Level 2) (Level 3) 31 December 2016 USD USD USD USD Financial assets at fair value through profit or loss
Investments in transferable securities, at fair value
- Common stocks 58,012,872 58,012,872 - - - Corporate bonds 9,270,030 9,270,030 - - - Term loans 633,328 - 633,328 -
67,916,230 67,282,902 633,328 -
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
52
8. Risk Associated with Financial Instruments (continued)
Brookfield Global Listed Infrastructure UCITS Fund
31 December 2015 Total (Level 1) (Level 2) (Level 3)
USD USD USD USD
Financial assets at fair value through profit or loss
Investments in transferable securities, at fair value
- Common stocks 561,386,050 561,386,050 - -
561,386,050 561,386,050 - -
Brookfield Global Listed Real Estate UCITS Fund 31 December 2015 Total (Level 1) (Level 2) (Level 3) USD USD USD USD Financial assets at fair value through profit or loss
Investments in transferable securities, at fair value - Common stocks 192,091,292 192,091,292 - -
192,091,292 192,091,292 - -
Brookfield US Listed Real Estate UCITS Fund 31 December 2015 Total (Level 1) (Level 2) (Level 3) USD USD USD USD Financial assets at fair value through profit or loss
Investments in transferable securities, at fair value - Common stocks 68,315,352 68,315,352 - -
68,315,352 68,315,352 - -
Brookfield Global Listed Infrastructure Long Short UCITS Fund 31 December 2015 Total (Level 1) (Level 2) (Level 3) USD USD USD USD Financial assets at fair value through profit or loss
Investments in transferable securities, at fair value
- Common stocks 7,621,165 7,621,165 - - - Investment funds 1,126,477 - 1,126,477 - Investments in financial derivative instruments - Forward currency contracts 33 - 33 - - CFD - Equities 74,378 - 74,378 -
8,822,053 7,621,165 1,200,888 -
Financial liabilities at fair value through profit or loss Investments in financial derivative instruments - Forward currency contracts (9) - (9) - - CFD - Equities (329,950) - (329,950) -
(329,959) - (329,959) -
Brookfield Real Assets Securities UCITS Fund Total (Level 1) (Level 2) (Level 3) 31 December 2015 USD USD USD USD Financial assets at fair value through profit or loss
Investments in transferable securities, at fair value
- Common stocks 43,647,704 43,647,704 - - - Corporate bonds 14,141,234 14,141,234 - - - Term loans 590,535 - 590,535 - Investments in financial derivative instruments
- CFD - Equities 27,487 - 27,487 -
58,406,960 57,788,938 618,022 -
The sub-funds did not invest in any Level 3 securities during the financial year and there were no transfers in or out of Level 3.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
53
8. Risk Associated with Financial Instruments (continued)
Valuation Techniques When fair values of listed equity and debt securities as well as publicly traded derivatives at the reporting date are based on quoted market prices or binding dealer price quotations, without any deduction for transaction costs, the instruments are included within Level 1 of the hierarchy. The Company uses widely recognised valuation models for determining fair values of over-the-counter derivatives. For these financial instruments, inputs into models are market observable and are therefore included within Level 2. The fair values of currency exchange contracts (forward currency contracts and CFD - Equities) are calculated by reference to current exchange rates for contracts with similar maturity and risk profiles. The Company is exposed to market risk, (which includes the risk of market fluctuations, currency risk, interest rate risk and portfolio management risk), liquidity risk and credit risk arising from the financial instruments it holds. The Company may use derivatives and other instruments in connection with its risk management activities. The Company has investment guidelines that set out its overall business strategies, its tolerance for risk and its general risk management philosophy and has established processes to monitor and control economic hedging transactions in a timely and accurate manner. The Company’s accounting policies in relation to derivatives are set out in note 2 to the financial statements and the Company has a Risk Management Process in place for the use of financial derivative investments which has been approved by the Board and the Central Bank of Ireland.
Market Price Risk Set out below is a description of risks and an outline of the processes the Investment Manager has implemented to assess, monitor and control these specific risks: Market price risk is the risk that the fair value of financial instruments (i.e., bonds, equities and other investments) or its future cash flows will fluctuate because of changes in market prices and includes currency risk and interest rate risk. The Company’s market risk management strategy is driven by the investment objectives of each of the sub-funds. The sub-funds are actively managed. The following specific processes are in place to control market risk:
Market risk for all sub-funds is assessed by the Investment Manager in the context of the total portfolio being managed, where financial derivative instruments are included on a fully paid up exposure basis;
Consideration is given to basis risk (the risk that the financial derivative instrument will not move in line with the physical position) where appropriate;
Restrictions on gearing of portfolios are in place (as defined in the Company’s Prospectus). Financial derivative instruments cannot be used to circumvent these restrictions;
Net exposures of a sub-fund to an asset class, including the delta weighted exposure of derivative instruments are restricted by the Company’s investment guidelines;
In the case of use of financial derivative instrument positions to achieve exposure, the sub-funds hold sufficient cash or appropriate equivalent to meet potential obligations arising from the net derivative position. In the case of derivative positions to remove exposure, the sub-funds hold assets, which are considered a reasonable hedge.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
54
8. Risk Associated with Financial Instruments (continued)
Market Price Risk (continued) As at 31 December 2016, a 5% increase or decrease in the market prices of the underlying instruments would have increased or decreased the net assets attributable to holders of redeemable shares by the amounts shown below, on the basis that all other variables remained constant. The Investment Manager considers this movement to be a reasonable size of movement to use as an indicator of the size of market price move a sub-fund might experience. 31 December 2016
USD
Brookfield Global Listed Infrastructure UCITS Fund 31,452,787
Brookfield Global Listed Real Estate UCITS Fund 9,833,119
Brookfield US Listed Real Estate UCITS Fund 3,258,605
Brookfield Global Listed Infrastructure Long Short Fund 465,855
Brookfield Real Assets Securities UCITS Fund 3,395,812
31 December 2015
USD
Brookfield Global Listed Infrastructure UCITS Fund 28,069,303
Brookfield Global Listed Real Estate UCITS Fund 9,604,565
Brookfield US Listed Real Estate UCITS Fund 3,415,768
Brookfield Global Listed Infrastructure Long Short Fund 424,605
Brookfield Real Assets Securities UCITS Fund 2,920,348
Interest Rate Risk Interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in market interest rates. The majority of the Company’s financial assets and liabilities and financial derivatives are non-interest bearing and therefore are not exposed to interest rate risk. The Company has investments in corporate bonds which are subject to interest rate risk. The table below summarises the maturity periods for interest-bearing securities held by Brookfield Real Assets Securities UCITS Fund as at 31 December 2016.
Non- Up to 1 1 - 5 Over interest year years 5 years bearing Total USD USD USD USD USD Corporate bonds - 1,557,594 7,712,436 - 9,270,030 Term loans - 356,092 277,236 - 633,328 Common stocks
- - - 58,012,872 58,012,872 Financial Derivative Instruments - - - - - Other assets - - - 2,721,315 2,721,315 Total assets - 1,913,686 7,989,672 60,734,187 70,637,545 Financial Derivative Instruments - - - - - Other liabilities - - - 823,617 823,617 Total liabilities - - - 823,617 823,617 Total Net Assets 69,813,928
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
55
8. Risk Associated with Financial Instruments (continued)
Interest Rate Risk (continued)
The table below summarises the maturity periods for interest-bearing securities held by Brookfield Real Assets Securities UCITS Fund as at 31 December 2015.
Non- Up to 1 1 - 5 Over interest year years 5 years bearing Total USD USD USD USD USD Corporate bonds - 1,545,688 12,595,546 - 14,141,234 Term loans - 590,535 - - 590,535 Common stocks
- - - 43,647,704 43,647,704 Financial Derivative Instruments - - - 27,487 27,487 Other assets - - - 5,577,087 5,577,087 Total assets - 2,136,223 12,595,546 49,252,278 63,984,047 Other liabilities - - - 841,122 841,122 Total liabilities - - - 841,122 841,122 Total Net Assets 63,142,925
As at 31 December 2016, a 100 basis points change in interest rates would have an impact on net assets attributable to holders of redeemable shares and cause an increase/decrease in net assets attributable to holders of redeemable shares of USD 99,034 for Brookfield Real Assets Securities UCITS Fund.
The interest rate sensitivity provided above represents a hypothetical outcome and is not intended to be predictive. Market conditions, and therefore future interest rates, could vary significantly from that suggested.
In accordance with the Company's policy, the Investment Manager monitors the Company's overall interest rate sensitivity on a continuous basis, and the Board reviews it on a quarterly basis.
Foreign Currency Risk
Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The income and capital value of the Company’s investments can be significantly affected by currency translation movements as the majority of the Company’s assets could be denominated in currencies other than base currency. The fluctuations in the rate of exchange between the currency in which the asset or liability is denominated and the functional currency could result in an appreciation or depreciation in the fair value of that asset.
The tables below and overleaf analyse the net amount of monetary assets and liabilities held by each sub-fund at the balance sheet date denominated in currencies other than USD, the functional currency as at 31 December 2016 and 31 December 2015.
Brookfield Global Listed Infrastructure UCITS Fund
31 December 2016 Net Other Net Foreign
Total Monetary Net Currency Net
Investments Assets/(Liabilities) Assets/(Liabilities) Derivatives Exposure
USD USD USD USD USD
AUD 24,030,445 - 580,289 - 24,610,734
BRL 3,485,044 - - - 3,485,044
CAD 82,291,710 60 294,091 - 82,585,861
CHF 8,707,596 - - - 8,707,596
DKK 2,991,237 - - - 2,991,237
EUR 77,424,259 - 594,579 - 78,018,838
GBP 62,718,580 - 451,484 - 63,170,064
HKD 9,612,955 - - - 9,612,955
JPY 8,621,752 - - - 8,621,752
MXN 6,996,503 - - - 6,996,503
NZD 6,810,878 2 - - 6,810,880
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
56
8. Risk Associated with Financial Instruments (continued)
Foreign Currency Risk (continued)
Brookfield Global Listed Infrastructure UCITS Fund (continued)
A strengthening of the USD against the currencies in the previous table would have resulted in losses to the amounts shown below. A weakening of the USD against these currencies would have resulted in an equal but opposite effect.
Sensitivity analysis of Net Exposure
(5% movement)
USD
AUD 1,230,537
BRL 174,252
CAD 4,129,293
CHF 435,380
DKK 149,562
EUR 3,900,942
GBP 3,158,503
HKD 480,648
JPY 431,088
MXN 349,825
NZD 340,544
31 December 2015 Net Other Net Foreign
Total Monetary Net Currency Net
Investments Assets/(Liabilities) Assets/(Liabilities) Derivatives Exposure
USD USD USD USD USD
AUD 24,455,500 - 455,677 - 24,911,177
CAD 56,406,880 18 177,491 - 56,584,389
CHF 7,662,967 - - - 7,662,967
EUR 93,912,599 - (4,903,899) - 89,008,700
GBP 48,625,749 9 816,287 - 49,442,045
HKD 28,130,280 - (1,852,137) - 26,278,143
JPY 6,177,358 - - - 6,177,358
MXN 7,135,371 - 30,979 - 7,166,350
A strengthening of the USD against the currencies in the previous table would have resulted in losses to the amounts shown overleaf. A weakening of the USD against these currencies would have resulted in an equal but opposite effect.
Sensitivity analysis of Net Exposure
(5% movement)
USD
AUD 1,245,559
CAD 2,829,219
CHF 383,148
EUR 4,450,435
GBP 2,472,102
HKD 1,313,907
JPY 308,868
MXN 358,318
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
57
8. Risk Associated with Financial Instruments (continued)
Foreign Currency Risk (continued) Brookfield Global Listed Real Estate UCITS Fund 31 December 2016 Net Other Net Foreign
Total Monetary Net Currency Net
Investments Assets/(Liabilities) Assets/(Liabilities) Derivatives Exposure
USD USD USD USD USD
AUD 10,956,423 - (110,602) - 10,845,821
EUR 18,409,157 766,375 (1,145,383) (39,317,636) (21,287,487)
GBP 23,518,025 - 44,445 - 23,562,470
HKD 14,707,407 - (1,329,655) - 13,377,752
JPY 13,628,803 - (373,969) - 13,254,834
NZD - - 2 - 2
SGD 9,179,182 - (153,363) - 9,025,819
A strengthening of the USD against the currencies in the previous table would have resulted in losses to the amounts shown below. A weakening of the USD against these currencies would have resulted in an equal but opposite effect.
Sensitivity analysis of Net Exposure
(5% movement)
USD
AUD 542,291
EUR (1,064,374)
GBP 1,178,124
HKD 668,888
JPY 662,742
NZD -
SGD 451,291
31 December 2015
Net Other Net Foreign
Total Monetary Net Currency Net
Investments Assets/(Liabilities) Assets/(Liabilities) Derivatives Exposure
USD USD USD USD USD
AUD 15,457,854 - 180,488 - 15,638,342
EUR 28,127,710 - - - 28,127,710
GBP 7,667,277 - - - 7,667,277
HKD 10,243,617 - 171,166 - 10,414,783
JPY 14,605,480 - 31,687 - 14,637,167
NZD 1,512,514 - - - 1,512,514
SGD 3,414,628 - (160,433) - 3,254,195
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
58
8. Risk Associated with Financial Instruments (continued)
Foreign Currency Risk (continued)
Brookfield Global Listed Real Estate UCITS Fund (continued)
A strengthening of the USD against the currencies in the previous table would have resulted in losses to the amounts shown below. A weakening of the USD against these currencies would have resulted in an equal but opposite effect.
Sensitivity analysis of Net Exposure
(5% movement)
USD
AUD 781,917
EUR 1,406,386
GBP 383,364
HKD 520,739
JPY 731,858
NZD 75,626
SGD 162,710
Brookfield US Listed Real Estate UCITS Fund 31 December 2016 Net Other Net Foreign
Total Monetary Net Currency Net
Investments Assets/(Liabilities) Assets/(Liabilities) Derivatives Exposure
USD USD USD USD USD
JPY - - (11,638) - (11,638)
A strengthening of the USD against the currencies in the previous table would have resulted in losses to the amounts shown below. A weakening of the USD against these currencies would have resulted in an equal but opposite effect.
Sensitivity analysis of Net Exposure
(5% movement)
USD
JPY (582)
31 December 2015 Net Other Net Foreign
Total Monetary Net Currency Net
Investments Assets/(Liabilities) Assets/(Liabilities) Derivatives Exposure
USD USD USD USD USD
JPY - - 264,969 - 264,969
A strengthening of the USD against the currencies in the previous table would have resulted in losses to the amounts shown below. A weakening of the USD against these currencies would have resulted in an equal but opposite effect.
Sensitivity analysis of Net Exposure
(5% movement)
USD
EUR 13,248
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
59
8. Risk Associated with Financial Instruments (continued)
Foreign Currency Risk (continued)
Brookfield Global Listed Infrastructure Long Short UCITS Fund 31 December 2016 Net Other Net Foreign
Total Monetary Net Currency Net
Investments Assets/(Liabilities) Assets/(Liabilities) Derivatives Exposure
USD USD USD USD USD
BRL 432,585 - 366 (11,056) 421,895
CAD 728,338 - (7,454) (9,481) 711,403
CHF 371,722 - - - 371,722
EUR 1,680,691 - (47,559) (10,387) 1,622,745
GBP 238,295 - - - 238,295
HKD - 16 - - 16
MXN 580,154 - - - 580,154
A strengthening of the USD against the currencies in the previous table would have resulted in losses to the amounts shown below. A weakening of the USD against these currencies would have resulted in an equal but opposite effect.
Sensitivity analysis of Net Exposure
(5% movement)
USD
BRL 21,095
CAD 35,570
CHF 18,586
EUR 81,137
GBP 11,915
HKD 1
MXN 29,008
31 December 2015 Net Other Net Foreign
Total Monetary Net Currency Net
Investments Assets/(Liabilities) Assets/(Liabilities) Derivatives Exposure
USD USD USD USD USD
AUD 440,984 - 32,159 (32,153) 440,990
BRL 9,475 - (1,483) - 7,992
CAD 590,758 - 3,053 - 593,811
CHF 301,099 - - - 301,099
EUR 1,015,691 - (118) - 1,015,573
HKD 271,488 - (42,945) 37,041 265,584
MXN 343,260 - 58,555 - 401,815
NZD (14,093) - 148 - (13,945)
TRY 15,540 - 1,711 - 17,251
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
60
8. Risk Associated with Financial Instruments (continued)
Foreign Currency Risk (continued)
Brookfield Global Listed Infrastructure Long Short UCITS Fund (continued) A strengthening of the USD against the currencies in the previous table would have resulted in losses to the amounts shown below. A weakening of the USD against these currencies would have resulted in an equal but opposite effect.
Sensitivity analysis of Net Exposure
(5% movement)
USD
AUD 22,050
BRL 400
CAD 29,691
CHF 15,055
EUR 50,779
HKD 13,729
MXN 20,091
NZD (697)
TRY 863
Brookfield Real Assets Securities UCITS Fund
31 December 2016 Net Other Net Foreign
Total Monetary Net Currency Net
Investments Assets/(Liabilities) Assets/(Liabilities) Derivatives Exposure
USD USD USD USD USD
AUD 2,275,454 - 40,656 - 2,316,110
BRL 153,975 - - - 153,975
CAD 3,852,733 - 15,208 - 3,867,941
CHF 315,964 - - - 315,964
DKK 129,064 - - - 129,064
EUR 5,537,851 - (33) - 5,537,818
GBP 5,365,330 8 27,343 - 5,392,681
HKD 1,955,629 - - - 1,955,629
JPY 1,898,391 - (23,481) - 1,874,910
MXN 305,683 - - - 305,683
NZD 290,687 - - - 290,687
SGD 928,728 - 22,154 - 950,882
A strengthening of the USD against the currencies in the previous table would have resulted in losses to the amounts shown below. A weakening of the USD against these currencies would have resulted in an equal but opposite effect.
Sensitivity analysis of Net Exposure
(5% movement)
USD
AUD 115,806
BRL 7,699
CAD 193,397
CHF 15,798
DKK 6,453
EUR 276,891
GBP 269,634
HKD 97,781
JPY 93,746
MXN 15,284
NZD 14,534
SGD 47,544
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
61
8. Risk Associated with Financial Instruments (continued)
Foreign Currency Risk (continued) Brookfield Real Assets Securities UCITS Fund 31 December 2015 Net Other Net Foreign
Total Monetary Net Currency Net
Investments Assets/(Liabilities) Assets/(Liabilities) Derivatives Exposure
USD USD USD USD USD
AUD 2,038,625 - 23,796 - 2,062,421
CAD 1,911,901 - 4,480 - 1,916,381
CHF 195,714 - - - 195,714
EUR 6,052,661 - (16,786) - 6,035,875
GBP 2,110,098 9 11,169 - 2,121,276
HKD 1,467,633 - - - 1,467,633
JPY 1,845,707 - 2,493 - 1,848,200
MXN 106,081 - (1,457) - 104,624
NOK 82,192 - - - 82,192
NZD 168,718 - - - 168,718
SGD 423,283 - (12,980) - 410,303
A strengthening of the USD against the currencies in the previous table would have resulted in losses to the amounts shown below. A weakening of the USD against these currencies would have resulted in an equal but opposite effect.
Sensitivity analysis of Net Exposure
(5% movement)
USD
AUD 103,121
CAD 95,819
CHF 9,786
EUR 301,794
GBP 106,064
HKD 73,382
JPY 92,410
MXN 5,231
NOK 4,110
NZD 8,436
SGD 20,515
Liquidity Risk
Liquidity risk is the risk that an entity will encounter difficulty in realising assets or in meeting obligations associated with financial liabilities as they fall due. As required by IFRS 7 the sub-fund’s financial liabilities should be categorised into relevant maturity groupings based on the remaining period as at 31 December 2016 and 31 December 2015 to the contractual maturity date. However, as all liabilities mature in less than one year from the balance sheet date for both 31 December 2016 and 31 December 2015, this analysis is not required in this instance. In accordance with the Company’s policy, the Investment Manager monitors the Company’s overall liquidity risk on a continuous basis.
.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
62
8. Risk Associated with Financial Instruments (continued)
Credit risk Credit risk is the risk that one party to a financial instrument will cause financial loss to another party by failing to discharge an obligation. It is the Company’s policy to enter into financial transactions with a range of reputable counterparties thus diversifying the credit risk. Therefore, the Company does not expect to incur material credit losses on its financial instruments. With respect to Financial Derivative Instruments (FDIs), credit risk arises from the potential failure of counterparties to meet their obligations under the contract or arrangement.
The table below contains the debt securities' percentage breakdown by rating held by:
Brookfield Real Assets Securities UCITS Fund
Rating 31 December 2016
AA 0%
BBB 1%
BB 6%
B 4%
CCC 1%
CC 0%
Other 1%
Brookfield Real Assets Securities UCITS Fund*
Rating 31 December 2015
AA 0%
BBB 2%
BB 11%
B 11%
CCC 0%
CC 2%
Other 11%
*Launched on 1 September 2015.
The counterparty for the CFD - Equities held as at 31 December 2016 is JP Morgan. Details of the CFD - Equities held can be found in note 10.
The Company is exposed to credit risk on cash held with the Depositary. Bankruptcy or insolvency of the Depositary may cause the Company’s rights with respect to securities held by RBC Investor Services Bank S.A., Dublin Branch to be delayed or limited. The Company monitors its risk by monitoring the credit quality and financial position of RBC Investor Services Bank S.A., Dublin Branch.
As at 31 December 2016 RBC Investor Services Bank S.A., Dublin Branch has a credit rating of AA- with S&P’s (as at 31 December 2015: AA- for S&P’s). The Investment Manager regularly reviews concentrations of credit risk.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
63
8. Risk Associated with Financial Instruments (continued)
Financial Derivative Instruments The Investment Manager has assessed the risk profile of the Company and the related sub-funds on the basis of the investment policy, strategy and the use of financial derivative instruments. Based on the risk profile, the Investment Manager has determined that the method for the calculation of the global exposure to financial derivative instruments for all sub-funds will be the commitment approach, where the sub-fund holds financial derivative instruments. Efficient Portfolio Management The Company may, within the conditions and limits laid down by the Central Bank of Ireland, for the purpose of efficient portfolio management specifically for currency hedging, enter into a variety of derivative instruments including, but not limited to, CFD - Equities, options, index futures and financial futures. The Company may also purchase or sell spot or forward currency contracts predominantly for the purpose of providing protection against exchange rate risk. Furthermore, the Company may, for efficient portfolio management, enter into CFD - Equities with one or more counterparties subject to the conditions and limits set out in the UCITS Regulations. Each sub-fund may also utilise derivative instruments for investment purposes and details of such instruments used and the specific strategies for which such instruments are employed in this context will be set out in the applicable Supplement ‘Efficient Portfolio Management’, for these purposes, means an investment decision involving transactions that are entered into for one or more of the following specific aims:
a reduction of risk; a reduction of cost; and
the generation of additional capital or income for the Fund with an appropriate level of risk, taking into account the risk profile of the Fund and the general provisions of the Regulations.
The Company will employ a risk management process which will enable it to accurately manage, monitor and measure the risks attached to derivative positions and details of this process have been provided to the Central Bank. The Company will not utilise derivative positions which have not been included in the risk management process until such time as a revised risk management process has been submitted and cleared by the Central Bank. The Company will provide on request to shareholders supplementary information relating to the risk management methods employed by the Company including the quantitative limits that are applied and any recent developments in the risk and yield characteristics of the main categories of investments of the relevant sub-fund.
The realised and unrealised gains/(losses) arising from the derivative transactions were presented in the Statements of Comprehensive Income under the position 'Net realised and unrealised gain/(loss) on financial assets and liabilities at fair value through profit or loss' and in the corresponding note 6. As further detailed in note 9 and note 10, in seeking to hedge part of the currency risk exposure in the core portfolio for Brookfield Global Listed Real Estate UCITS Fund and Brookfield Global Listed Infrastructure Long Short UCITS Fund, forward currency contracts and CFD - Equities were utilised as at the financial year end. The realised and unrealised gains/(losses) arising from the derivative transactions were presented in the Statements of Comprehensive Income under the position 'Net realised and unrealised gain/(loss) on financial assets and liabilities at fair value through profit or loss' and in the corresponding note 6. The exposure obtained through the efficient portfolio management is equivalent to the value of the forward currency contracts and CFD - Equities held as at the financial year end. The counterparty in relation to the forward currency contracts is RBC IS Bank Luxembourg. The counterparty in relation to the CFD - Equities is JP Morgan. Cash collateral details are shown in note 5.
There were no netting agreements in place for financial year ended 31 December 2016 (none for 31 December 2015). As result revised requirements of IFRS 7 to disclose offsetting requirements for financial assets and liabilities have no impact on current disclosures in the Company’s financials.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
64
9. Forward Currency Contracts
Brookfield Global Listed Real Estate UCITS Fund 31 December 2016
Settlement/ Counterparty Bought Amount Sold Amount Unrealised
Maturity Date Gain/(Loss)
USD
3 January 2017 RBC IS Bank Luxembourg EUR 173,897 USD (181,994) 1,477
3 January 2017 RBC IS Bank Luxembourg USD 542 EUR (519) (5)
4 January 2017 RBC IS Bank Luxembourg EUR 82,607 USD (86,685) 477
31 January 2017 RBC IS Bank Luxembourg EUR 37,243,639 USD (39,049,471) 301,599
303,548
Brookfield Global Listed Infrastructure Long Short UCITS Fund 31 December 2015
Settlement/ Counterparty Bought Amount Sold Amount Unrealised
Maturity Date Gain/(Loss)
USD
4 January 2016 RBC IS Bank Luxembourg HKD 161,973 USD (20,906) (6)
4 January 2016 RBC IS Bank Luxembourg USD 14,693 AUD (20,156) 31
5 January 2016 RBC IS Bank Luxembourg HKD 125,090 USD (16,144) (3)
5 January 2016 RBC IS Bank Luxembourg USD 17,493 AUD (24,046) 2
24
10. CFD - Equities
Brookfield Global Listed Infrastructure Long Short UCITS Fund 31 December 2016 Description Maturity Quantity Currency Issuer Fair Value
Date in USD
Aeroports De Paris Adp 19 July 2017 (1,000) EUR JP Morgan (4,419)
Consolidated Edison Inc 10 February 2017 (4,200) USD JP Morgan (8,106)
Dlek Lgst Prtns /Lp 10 August 2017 (1,900) USD JP Morgan 1,615
Ecorodovias 12 January 2018 (34,600) BRL JP Morgan (11,056)
Genesis Energy Lp 18 May 2017 (3,300) USD JP Morgan (7,062)
Hamburger Hafen Und Logistik Ag 11 December 2017 (9,300) EUR JP Morgan 589
Holly En-Partnership Units 2 June 2017 (8,300) USD JP Morgan 5,976
Hydro One Ltd 1 February 2018 (4,500) CAD JP Morgan (19)
Ishares/Msci Brazil/Cap.Ind.Fd 1 February 2018 (7,100) USD JP Morgan (689)
Ishs Us Real Estate - Shs 15 November 2017 (2,300) USD JP Morgan (1,013)
Keyera 26 January 2017 (10,400) CAD JP Morgan (9,461)
Magellan Midstream Partners 9 May 2017 (5,400) USD JP Morgan (15,716)
Oneok Partners Lp 31 August 2017 (3,800) USD JP Morgan 2,508
Sector Spdr Tr./Util.Sel.Spdr 1 February 2018 (3,300) USD JP Morgan 922
Semgroup -A- 17 October 2017 (4,600) USD JP Morgan (9,200)
Shell Midst /Lp 14 September 2017 (7,500) USD JP Morgan (14,925)
Spdr S&P500 Etf Trust S.1 1 February 2018 (1,300) USD JP Morgan (13)
Tallgrass Energy Partners Lp 13 December 2017 (4,900) USD JP Morgan (11,025)
Terna- Rete Elettrica Nazional 5 April 2017 (44,400) EUR JP Morgan (6,556)
Total as at 31 December 2016 (87,650)
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
65
10. CFD - Equities (continued)
Brookfield Global Listed Infrastructure Long Short UCITS Fund (continued) 31 December 2015
Description Maturity Quantity Currency Issuer Fair Value
Date in USD
American States Water Co 31 January 2016 (10,200) USD JP Morgan (13,974)
Antero Mid /Lp 31 January 2016 (14,900) USD JP Morgan (58,557)
Auck Int 31 January 2016 (43,800) NZD JP Morgan (14,093)
Beijing Enterprises Water Gp 31 January 2016 (299,700) HKD JP Morgan 2,770
Frankfurt Airport Serv.Worldw. 31 January 2016 (3,600) EUR JP Morgan (5,619)
Genesis Energy Lp 31 January 2016 (8,400) USD JP Morgan (39,648)
Grupo Aeroport.Del Sures/Sadr 31 January 2016 (1,500) USD JP Morgan 2,080
Hamburger Hafen Und Logistik Ag 31 January 2016 (9,300) EUR JP Morgan (2,233)
Ishares/Msci Brazil/Cap.Ind.Fd 31 January 2016 (26,400) USD JP Morgan 43,850
Ishs Msci Australia - Shs 31 January 2016 (7,500) USD JP Morgan (8,239)
Ishs Us Real Estate - Shs 31 January 2016 (2,300) USD JP Morgan (3,078)
Keyera 31 January 2016 (2,600) CAD JP Morgan 663
Ngl Energy Partners Lp /Lp 31 January 2016 (26,500) USD JP Morgan (55,120)
Northwest Natural Gas Co 31 January 2016 (8,700) USD JP Morgan (17,661)
Oneok Partners Lp 31 January 2016 (6,100) USD JP Morgan (43,845)
Plains All-Am.Pipel./Partn 31 January 2016 (7,300) USD JP Morgan (23,579)
Rumo Logist 31 January 2016 197,300 BRL JP Morgan 9,475
Spdr S&P500 Etf Trust S.1 31 January 2016 (2,600) USD JP Morgan (2,321)
Tallgrass Energy Partners Lp 31 January 2016 (3,400) USD JP Morgan (22,780)
Tav Havalimalari Holding As 31 January 2016 (63,000) TRY JP Morgan 15,540
Valero Energy Partners Lp /Lp 31 January 2016 (2,500) USD JP Morgan (15,975)
Zhejiang Expressway Co Ltd H 31 January 2016 (149,800) HKD JP Morgan (3,228)
Total as at 31 December 2015 (255,572)
Brookfield Real Assets Securities UCITS Fund
Description Maturity Quantity Currency Issuer Fair Value
Date in USD
Bbg Com Ind - Bcom 31 January 2016 31,951 USD JP Morgan 27,487
Total as at 31 December 2015 27,487
11. Exchange Rates
The exchange rate to United States Dollar used in the preparation of these financial statements was:
Currency 31 December 2016 Currency 31 December 2016
AUD - Australian Dollar 0.724100 JPY - Japanese Yen 0.008574
BRL - Brazilian Real 0.307248 MXN - New Mexican Peso 0.048540
CAD - Canadian Dollar 0.745684 NOK - Norwegian Krone 0.116175
CHF - Swiss Franc 0.983913 NZD - New Zealand Dollar 0.697300
DKK – Danish Krone 0.141853 SEK - Swedish Krona 0.110076
EUR - Euro 1.054750 SGD - Singapore Dollar 0.692185
GBP - Great British Pound 1.235650 TRY - New Turkish Lira 0.284285
HKD - Hong Kong Dollar 0.128980
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
66
11. Exchange Rates (continued)
Currency 31 December 2015 Currency 31 December 2015
AUD - Australian Dollar 0.727550 HKD - Hong Kong Dollar 0.129030
BRL - Brazilian Real 0.252765 JPY - Japanese Yen 0.831290
CAD - Canadian Dollar 0.719891 MXN - New Mexican Peso 0.057900
CHF - Swiss Franc 0.999001 NOK - Norwegian Krone 0.112977
CNY - Chinese Yuan - Renminbi 0.153998 NZD - New Zealand Dollar 0.684600
EUR - Euro 1.086300 SGD - Singapore Dollar 0.704895
GBP - Great British Pound 1.473900 TRY - New Turkish Lira 0.342601
12. Share Capital and Redeemable Participating Shares
The maximum authorised share capital of the Company is 100,000,000,000 Shares of no par value and 500,000 Subscriber Shares of USD 1 each. The Subscriber Shares do not entitle the holders to any dividend and on a winding up entitle the holder to receive the amount paid up thereon but not otherwise to participate in the assets of the Company. The Company may by ordinary resolution of all shareholders increase its authorised share capital, consolidate and divide all or any of its share capital into shares of larger amount or sub-divide its shares or any of them into shares of smaller amount. The Company may, by special resolution of all shareholders, reduce its issued share capital.
As the Subscriber Shares are not Participating Shares (and as such do not represent any interest in a sub-fund) they do not entitle the holders thereof to participate in the dividends of any sub-fund. Each holder of Subscriber Shares is entitled to attend and vote at any general meeting provided that any holder of Subscriber Shares shall not be entitled to vote at any such general meeting at any time that Shares in issue are held by two or more shareholders. The rights attached to any class of Share may, whether or not the Company is being wound up, be varied or abrogated with the consent in writing of the holders of 75% of the issued Shares of that class or with the sanction of a special resolution passed at a separate general meeting of the holders of the shares of that class. The provisions of the Articles relating to general meetings shall apply to every such separate general meeting but the necessary quorum at any such meeting shall be two persons holding or representing by proxy at least one third of the issued Shares of the class in question. Any holder of Shares of the class in question present in person or by proxy may demand a poll.
13. Soft Commission Arrangements
For the financial years ended 31 December 2016 and 31 December 2015, the Investment Manager received soft commissions from brokers/dealers in consideration for directing dealings in the investments of the Sub-Funds. These soft commissions were in the form of goods and services such as subscriptions to research services which are of demonstrable benefits to shareholders.
14. Statement of Net Assets for Prior Years
Brookfield Global Listed Infrastructure UCITS Fund
31 December 2016 31 December 2015 31 December 2014
Net Assets for Shareholder dealing/prospectus USD 633,045,898 USD 566,836,698 USD 543,435,745
Net Asset Value per Share:
Net Asset Value Per Share B Class EUR 35.79 EUR 31.23 EUR 34.91
Net Asset Value Per Share E Class USD 28.04 USD 25.20 USD 31.38
Net Asset Value Per Share F Class USD 17.81 USD 16.65 USD 21.36
Net Asset Value Per Share M Class USD 16.39 USD 14.85 USD 18.65
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
67
14. Statement of Net Assets for Prior Years (continued)
Brookfield Global Listed Real Estate UCITS Fund
31 December 2016 31 December 2015 31 December 2014
Net Assets for Shareholder dealing/prospectus USD 200,457,895 USD 192,206,436 USD 186,618,019
Net Asset Value per Share:
Net Asset Value Per Share B Class EUR 43.71 EUR 40.05 EUR 36.91
Net Asset Value Per Share E Class USD 34.25 USD 32.33 USD 33.19
Net Asset Value Per Share F Class USD 20.97 USD 20.59 USD 21.78
Net Asset Value Per Share I Class* EUR 20.34 - -
Brookfield US Listed Real Estate UCITS Fund
31 December 2016 31 December 2015 31 December 2014
Net Assets for Shareholder dealing/prospectus USD 66,061,509 USD 70,031,764 USD 61,894,728
Net Asset Value per Share:
Net Asset Value Per Share E Class USD 34.96 USD 32.80 USD 35.12
Net Asset Value Per Share Q Class JPY 867.76 JPY 873.34 -
Brookfield Global Listed Infrastructure Long Short UCITS Fund**
31 December 2016 31 December 2015 31 December 2014
Net Assets for Shareholder dealing/prospectus USD 15,730,767 USD 13,910,398
-
Net Asset Value per Share:
Net Asset Value Per Share E Class USD 20.64 USD 18.55 -
Brookfield Real Assets Securities UCITS Fund***
31 December 2016 31 December 2015 31 December 2014
Net Assets for Shareholder dealing/prospectus USD 69,829,612 USD 63,142,925 -
Net Asset Value per Share:
Net Asset Value Per Share E Class USD 21.16 USD 19.21 -
* Launched on 25 May 2016 ** Launched on 26 August 2015. *** Launched on 1 September 2015.
15. Net Asset Value
The net assets value in the financial statements as at 31 December 2016 differs from that included in the published valuations as at 31 December 2016. The difference is due to the change in methodology in accounting for organisation costs as prescribed by IFRS, and the methodology indicated in the most recent Prospectus.
Brookfield Global Listed Infrastructure Long Short UCITS Fund*
31 December 2016 31 December 2015
Total Net Assets for financial statement purposes USD 15,711,269 USD 13,910,398
Adjustment for unamortised organisation costs USD 19,498 -
Total Net Assets for unitholder dealing/prospectus USD 15,730,767 USD 13,910,398
* Launched on 26 August 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
Notes to the financial statements for the financial year ended 31 December 2016 (continued)
68
15. Net Asset Value (continued)
Brookfield Real Assets Securities UCITS Fund*
31 December 2016 31 December 2015
Total Net Assets for financial statement purposes USD 69,813,928 USD 63,142,925
Adjustment for unamortised organisation costs USD 15,684 -
Total Net Assets for unitholder dealing/prospectus USD 69,829,612 USD 63,142,925
* Launched on 1 September 2015.
16. Events during the Financial Year There were no material events during the financial year.
17. Events after the Financial Year End There were no material events after the financial year end.
18. Contingent Assets As of 31 December 2016 the Company had lodged a withholding tax reclaim for a refund for withholding taxes which had been paid in 2015. The Board of Directors believe the inflow of economic benefits will be probable.
Brookfield Global Listed Infrastructure UCITS Fund
31 December 2016 31 December 2015 USD USD
Refund on withholding taxes 2,048,288 1,051,138
19. Changes to the Prospectus A revised Prospectus and Supplements dated 16 March 2016 for the Brookfield Investment Fund (UCITS) plc was filed with the CBI which updated certain addresses and the “Taxation” section, removed reference to two old sub-funds and inserted a cyber-security risk factor. In relation to the Supplements, the existing share classes were renamed and new share classes were added to cater for the UK Retail Distribution Review (RDR). Minor amendments were made to the investment policies of the Brookfield Real Assets Debt UCITS Fund, the Brookfield Real Assets Securities UCITS Fund and the Brookfield Global Listed Infrastructure Long Short UCITS Fund.
20. Approval of Financial Statements The Board approved the financial statements on 24 April 2017.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
69
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 December 2016
Value % Net
Shares USD Assets
INVESTMENTS
A) TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING
1) LISTED SECURITIES : COMMON STOCKS
AUSTRALIA Pipelines APA Group 977,000 6,062,810 1.0
Total Pipelines
6,062,810 1.0
Toll Roads Transurban Group 2,404,433 17,967,635 2.8
Total Toll Roads
17,967,635 2.8
TOTAL AUSTRALIA
24,030,445 3.8
BRAZIL Toll Roads
CCR SA 710,700 3,485,044 0.5
Total Toll Roads
3,485,044 0.5
Water Cia de Saneamento Basico do Estado de Sao Paulo 759,100 6,588,988 1.0
Total Water
6,588,988 1.0
TOTAL BRAZIL
10,074,032 1.5
CANADA Pipelines Enbridge Inc 600,200 25,287,114 4.0
Pembina Pipeline Corp 566,400 17,722,033 2.8
TransCanada Corp 712,700 32,173,922 5.1
Veresen Inc 390,807 3,820,497 0.6
Total Pipelines
79,003,566 12.5
Rail Canadian National Railway Co 48,800 3,288,144 0.5
Total Rail
3,288,144 0.5
TOTAL CANADA
82,291,710 13.0
DENMARK Other DONG Energy A/S 78,800 2,991,237 0.5
Total Other
2,991,237 0.5
TOTAL DENMARK 2,991,237 0.5
FRANCE Communications Eutelsat Communications SA 557,200 10,810,865 1.7
Total Communications
10,810,865 1.7
Toll Roads Groupe Eurotunnel SE 786,400 7,493,300 1.2
Total Toll Roads
7,493,300 1.2
TOTAL FRANCE
18,304,165 2.9
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
70
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 December 2016 (continued)
Value % Net
Shares USD Assets
GERMANY Electricity Transmission & Distribution Innogy SE 187,700 6,566,883 1.0
Total Electricity Transmission & Distribution
6,566,883 1.0
TOTAL GERMANY
6,566,883 1.0
GREAT BRITAIN Electricity Transmission & Distribution National Grid Plc 3,267,353 38,418,992 6.1
Total Electricity Transmission & Distribution
38,418,992 6.1
Water Pennon Group Plc 851,300 8,699,286 1.4
Severn Trent Plc 307,500 8,442,764 1.3
United Utilities Group Plc 642,900 7,157,538 1.1
Total Water
24,299,588 3.8
TOTAL GREAT BRITAIN
62,718,580 9.9
HONG KONG Gas Utilities Hong Kong & China Gas Co Ltd 3,802,842 6,739,340 1.1
Total Gas Utilities
6,739,340 1.1
Pipelines Beijing Enterprises Holdings Ltd 607,900 2,873,614 0.5
Total Pipelines
2,873,614 0.5
TOTAL HONG KONG
9,612,954 1.6
ITALY Electric Utilities & Generation
Enel SpA 1,459,400 6,446,597 1.0
Total Electric Utilities & Generation
6,446,597 1.0
Pipelines Italgas SpA 506,229 1,995,887 0.3
Snam SpA 2,531,146 10,449,309 1.6
Total Pipelines
12,445,196 1.9
Toll Roads Atlantia SpA 402,100 9,440,799 1.5
Total Toll Roads
9,440,799 1.5
TOTAL ITALY 28,332,592 4.4
JAPAN Gas Utilities Tokyo Gas Co Ltd 1,901,300 8,621,752 1.4
Total Gas Utilities
8,621,752 1.4
TOTAL JAPAN
8,621,752 1.4
MEXICO Airports Grupo Aeroportuario del Centro Norte SAB de CV 884,200 3,829,668 0.6
Total Airports
3,829,668 0.6
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
71
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 December 2016 (continued)
Value % Net
Shares USD Assets
Pipelines Infraestructura Energetica Nova SAB de CV 722,500 3,166,835 0.5
Total Pipelines
3,166,835 0.5
TOTAL MEXICO
6,996,503 1.1
NEW ZEALAND Airports Auckland International Airport Ltd 1,562,800 6,810,878 1.1
Total Airports
6,810,878 1.1
TOTAL NEW ZEALAND
6,810,878 1.1
SPAIN Communications Cellnex Telecom SAU 552,000 7,956,064 1.3
Total Communications
7,956,064 1.3
Toll Roads Ferrovial SA 907,343 16,264,555 2.6
Total Toll Roads
16,264,555 2.6
TOTAL SPAIN
24,220,619 3.9
SWITZERLAND Airports Flughafen Zuerich AG 46,850 8,707,596 1.4
Total Airports
8,707,596 1.4
TOTAL SWITZERLAND
8,707,596 1.4
UNITED ARAB EMIRATES Ports DP World Ltd 182,800 3,200,828 0.5
Total Ports
3,200,828 0.5
TOTAL UNITED ARAB EMIRATES
3,200,828 0.5
UNITED STATES Communications SBA Communications Corp 206,300 21,302,538 3.4
Total Communications
21,302,538 3.4
Electric Utlities & Generation Ameren Corp 196,100 10,287,406 1.6
Edison International 122,700 8,833,173 1.4
Total Electric Utlities & Generation
19,120,579 3.0
Gas Utilities NiSource Inc 313,200 6,934,248 1.1
ONE Gas Inc 49,200 3,146,832 0.5
Southwest Gas Corp 65,700 5,033,934 0.8
Total Gas Utilities
15,115,014 2.4
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
72
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 December 2016 (continued)
Value % Net
Shares USD Assets
Midstream Cheniere Energy Inc 199,000 8,244,570 1.3
Enable Midstream Partners LP 142,000 2,233,660 0.3
EQT Midstream Partners LP 73,200 5,612,976 0.9
Kinder Morgan Inc 1,226,300 25,396,673 4.0
Phillips 66 Partners LP 68,400 3,326,976 0.5
Rice Midstream Partners LP 94,800 2,330,184 0.4
Sunoco Logistics Partners LP 225,300 5,411,706 0.8
Targa Resources Corp 167,600 9,397,332 1.5
Western Gas Partners LP 127,600 7,497,776 1.2
Williams Cos Inc 564,200 17,569,188 2.8
Total Midstream
87,021,041 13.7
Pipelines Boardwalk Pipeline Partners LP 389,400 6,759,984 1.1
Enbridge Energy Partners LP 335,900 8,558,732 1.3
Energy Transfer Partners LP 720,900 20,207,079 3.2
Enterprise Products Partners LP 864,800 23,384,192 3.7
MPLX LP 296,856 10,277,155 1.6
Plains All American Pipeline LP 291,200 9,402,848 1.5
Sempra Energy 89,600 9,017,344 1.4
Total Pipelines
87,607,334 13.8
Rail Union Pacific Corp 32,100 3,328,128 0.5
Total Rail
3,328,128 0.5
Telecommunications American Tower Corp 368,418 38,934,414 6.2
Total Telecommunications
38,934,414 6.2
Transmission & Distribution PG&E Corp 565,200 34,347,204 5.4
Total Transmission & Distribution
34,347,204 5.4
Water American Water Works Co Inc 184,500 13,350,420 2.1
Total Water
13,350,420 2.1
TOTAL UNITED STATES
320,126,672 50.5
TOTAL LISTED SECURITIES : COMMON STOCKS
623,607,446 98.5
(Cost $609,678,378)
TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING 623,607,446 98.5
B) OTHER TRANSFERABLE SECURITIES
1) OTHER TRANSFERABLE SECURITIES : COMMON STOCKS
UNITED STATES Midstream Rice Midstream Partners LP 239,111 5,448,302 0.9
Total Midstream
5,448,302 0.9
TOTAL UNITED STATES
5,448,302 0.9
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
73
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 December 2016 (continued)
Value % Net
USD Assets
TOTAL OTHER TRANSFERABLE SECURITIES : COMMON STOCKS
5,448,302 0.9
(Cost $3,120,399)
TOTAL OTHER TRANSFERABLE SECURITIES 5,448,302 0.9
TOTAL INVESTMENTS
629,055,748 99.4
(Cost $612,798,777)
Other Assets in Excess of Liabilities
3,990,150 0.6
TOTAL NET ASSETS 633,045,898 100.0
ANALYSIS OF TOTAL ASSETS (unaudited)
% Total
Description Assets
TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING
98.4
OTHER TRANSFERABLE SECURITIES
0.8
OTHER ASSETS
0.8
TOTAL 100.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
74
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND
SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES (UNAUDITED) AS AT 31 DECEMBER 2016
Significant Purchases Cost
Security name Quantity (USD)
National Grid Plc 2,822,700 34,262,438
Kinder Morgan Inc 1,759,800 31,256,494
TransCanada Corp 703,000 26,980,874
Ferrovial SA 1,158,800 22,219,918
Innogy SE 495,000 19,916,523
SBA Communications Corp 153,200 16,470,491
Enbridge Inc 336,100 14,955,932
Edison International 222,100 14,211,230
Williams Cos Inc 706,500 12,634,043
Aena SA 106,400 12,498,543
Pennon Group Plc 984,000 12,164,821
Cellnex Telecom SAU 726,600 12,043,797
Eutelsat Communications SA 588,100 11,667,092
Ameren Corp 233,800 11,560,575
Abertis Infraestructuras SA 745,900 11,383,278
Pembina Pipeline Corp 401,200 11,371,168
PG&E Corp 186,500 11,022,617
Atlantia SpA 435,500 10,834,313
Targa Resources Corp 329,400 10,687,369
Severn Trent Plc 307,500 9,958,673
American Tower Corp 96,600 9,915,540
Plains All American Pipeline LP 303,600 9,557,929
Western Gas Partners LP 209,500 9,528,604
Tokyo Gas Co Ltd 1,901,300 8,818,574
NiSource Inc 413,600 8,723,556
Buckeye Partners LP 119,300 8,601,939
Enbridge Energy Partners LP 335,900 7,991,514
Cheniere Energy Inc 199,000 7,946,258
Auckland International Airport Ltd 1,562,800 7,520,147
Cia de Saneamento Basico do Estado de Sao Paulo 793,800 7,097,109
Eiffage SA 94,100 6,851,705
Spire Inc 99,800 6,808,886
APA Group 977,000 6,739,753
Energy Transfer Partners LP 201,900 6,603,382
Enel SpA 1,459,400 6,341,280
Phillips 66 Partners LP 127,700 6,225,871
MPLX LP 184,500 6,007,724
TransCanada Corp 167,700 5,828,666
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
75
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND
SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES (UNAUDITED) AS AT 31 DECEMBER 2016 (continued)
Significant Sales Proceeds
Security name Quantity (USD)
Crown Castle International Corp 248,100 23,724,091
National Grid Plc 1,797,654 23,293,141
Eversource Energy 405,300 22,293,900
Ferrovial SA 1,027,282 21,676,784
Aena SA 128,500 18,278,805
Enbridge Inc 399,900 14,387,153
Columbia Pipeline Group Inc 553,700 13,997,877
Union Pacific Corp 183,500 13,944,676
Williams Cos Inc 579,300 12,976,842
Atlantia SpA 512,700 12,475,541
NiSource Inc 487,200 12,040,377
SBA Communications Corp 114,200 11,746,355
Abertis Infraestructuras SA 745,900 11,156,717
Kinder Morgan Inc 533,500 11,018,572
Energy Transfer Partners LP 325,300 10,971,834
Groupe Eurotunnel SE 934,800 10,865,591
Targa Resources Corp 244,800 10,547,695
Red Electrica Corp SA 119,400 10,503,016
SES SA 455,900 10,404,261
Innogy SE 307,300 10,262,731
Enterprise Products Partners LP 400,400 10,215,477
Inter Pipeline Ltd 548,900 9,746,387
Koninklijke Vopak NV 184,300 8,784,314
ENN Energy Holdings Ltd 1,774,400 8,576,322
Aeroports de Paris 74,900 8,572,463
Veresen Inc 1,196,293 8,173,830
Buckeye Partners LP 119,300 7,746,564
Williams Partners LP 243,588 7,656,869
Edison International 99,400 7,638,272
CenterPoint Energy Inc 372,600 7,565,816
American Water Works Co Inc 99,400 7,352,429
Transurban Group 830,900 7,335,033
TransCanada Corp 167,700 6,732,185
TransCanada Corp 157,000 6,704,405
Spire Inc 99,800 6,385,603
Eiffage SA 94,100 6,320,752
China Merchants Holdings International Co Ltd 2,298,002 6,296,575
Rumo Logistica Operadora Multimodal SA 4,756,200 6,126,473
Pembina Pipeline Corp 210,100 6,065,758
East Japan Railway Co 64,900 5,790,629
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
76
BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016
Value % Net
Shares USD Assets
INVESTMENTS
A) TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING
1) LISTED SECURITIES : COMMON STOCKS
AUSTRALIA Real Estate - Diversified Dexus Property Group 438,083 3,051,617 1.5
Total Real Estate - Diversified
3,051,617 1.5
Retail Vicinity Centres 1,366,000 2,957,471 1.5
Westfield Corp 728,400 4,947,335 2.5
Total Retail
7,904,806 4.0
TOTAL AUSTRALIA
10,956,423 5.5
BERMUDA ISLANDS Office Hongkong Land Holdings Ltd 862,900 5,462,157 2.7
Total Office
5,462,157 2.7
TOTAL BERMUDA ISLANDS
5,462,157 2.7
CAYMAN ISLANDS Real Estate - Diversified Cheung Kong Property Holdings Ltd 970,782 5,953,805 3.0
SOHO China Ltd 3,767,800 1,856,409 0.9
Total Real Estate - Diversified
7,810,214 3.9
TOTAL CAYMAN ISLANDS
7,810,214 3.9
FRANCE Real Estate - Diversified Unibail-Rodamco SE 22,361 5,347,959 2.7
Total Real Estate - Diversified
5,347,959 2.7
TOTAL FRANCE
5,347,959 2.7
GERMANY Office Alstria office REIT-AG 344,300 4,310,596 2.1
Total Office
4,310,596 2.1
Real Estate Management/Service Vonovia SE 153,930 5,006,623 2.5
Total Real Estate Management/Service
5,006,623 2.5
TOTAL GERMANY
9,317,219 4.6
GREAT BRITAIN Diversified - Real Estate Land Securities Group Plc 462,864 6,096,858 3.0
Total Diversified - Real Estate
6,096,858 3.0
Office Great Portland Estates Plc 626,839 5,177,891 2.6
Total Office
5,177,891 2.6
Residential UNITE Group Plc 93,800 702,378 0.3
Total Residential
702,378 0.3
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
77
BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
Retail Hammerson Plc 786,061 5,565,528 2.8
Intu Properties Plc 1,719,094 5,975,370 3.0
Total Retail
11,540,898 5.8
TOTAL GREAT BRITAIN
23,518,025 11.7
HONG KONG Real Estate - Diversified Swire Properties Ltd 695,500 1,919,700 1.0
Total Real Estate - Diversified
1,919,700 1.0
Retail Wharf Holdings Ltd 748,617 4,977,494 2.5
Total Retail
4,977,494 2.5
TOTAL HONG KONG
6,897,194 3.5
JAPAN Office Mitsubishi Estate Co Ltd 294,745 5,881,762 2.9
Total Office
5,881,762 2.9
Other Leopalace21 Corp 39,200 217,115 0.1
Total Other
217,115 0.1
Real Estate - Diversified Mitsui Fudosan Co Ltd 208,900 4,844,813 2.4
Total Real Estate - Diversified
4,844,813 2.4
Retail Kenedix Retail REIT Corp 205 468,230 0.2
Total Retail
468,230 0.2
Residential Nippon Accommodations Fund Inc 506 2,216,883 1.1
Total Residential
2,216,883 1.1
TOTAL JAPAN
13,628,803 6.7
LUXEMBOURG Residential Grand City Properties SA 205,300 3,743,980 1.9
Total Residential
3,743,980 1.9
TOTAL LUXEMBOURG
3,743,980 1.9
SINGAPORE Industrial Global Logistic Properties Ltd 2,889,900 4,400,760 2.2
Total Industrial
4,400,760 2.2
Diversified - Real Estate CapitaLand Ltd 868,146 1,814,771 0.9
City Developments Ltd 517,100 2,963,651 1.5
Total Diversified - Real Estate
4,778,422 2.4
TOTAL SINGAPORE
9,179,182 4.6
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
78
BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
UNITED STATES Communications SBA Communications Corp 18,800 1,941,288 1.0
Uniti Group Inc 73,700 1,872,717 0.9
Total Communications
3,814,005 1.9
Healthcare Brookdale Senior Living Inc 343,900 4,271,238 2.1
Care Capital Properties Inc 81,925 2,048,125 1.0
Medical Properties Trust Inc 190,200 2,339,460 1.1
Omega Healthcare Investors Inc 82,220 2,570,197 1.3
Welltower Inc 60,500 4,049,264 2.0
Total Healthcare
15,278,284 7.5
Hotel Hersha Hospitality Trust 72,400 1,556,600 0.8
Hilton Worldwide Holdings Inc 109,744 2,985,037 1.5
LaSalle Hotel Properties 127,000 3,869,690 1.9
Total Hotel
8,411,327 4.2
Mixed Kilroy Realty Corp 70,900 5,191,298 2.6
Total Mixed
5,191,298 2.6
Office Boston Properties Inc 19,100 2,402,398 1.2
Equity Commonwealth 3,957 119,660 0.1
Highwoods Properties Inc 57,800 2,948,378 1.5
Hudson Pacific Properties Inc 58,900 2,048,542 1.0
Total Office
7,518,978 3.8
Other CyrusOne Inc 90,700 4,057,011 2.0
QTS Realty Trust Inc 4,700 233,355 0.1
Total Other
4,290,366 2.1
Real Estate - Diversified Vornado Realty Trust 63,400 6,617,058 3.3
Total Real Estate - Diversified
6,617,058 3.3
Regional Malls CBL & Associates Properties Inc 399,100 4,589,650 2.3
Simon Property Group Inc 69,225 12,299,205 6.1
Total Regional Malls
16,888,855 8.4
Residential American Campus Communities Inc 63,900 3,180,303 1.6
American Homes 4 Rent 194,300 4,076,414 2.0
AvalonBay Communities Inc 31,385 5,559,853 2.8
Essex Property Trust Inc 17,200 3,999,000 2.0
Total Residential
16,815,570 8.4
Retail Brixmor Property Group Inc 204,500 4,993,889 2.5
Washington Prime Group Inc 148,950 1,550,570 0.8
Total Retail
6,544,459 3.3
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
79
BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
Self Storage Life Storage Inc 6,600 562,716 0.3
Public Storage 13,400 2,994,900 1.5
Total Self Storage
3,557,616 1.8
Triple Net Lease Gramercy Property Trust 365,200 3,352,536 1.7
MGM Growth Properties LLC 99,600 2,520,876 1.3
Total Triple Net Lease
5,873,412 3.0
TOTAL UNITED STATES
100,801,228 50.3
TOTAL LISTED SECURITIES : COMMON STOCKS
196,662,384 98.1
(Cost $202,970,556)
TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING 196,662,384 98.1
NON-TRANSFERABLE SECURITIES Forward currency contracts (see note 9 for other details)
303,548 0.2
TOTAL NON-TRANSFERABLE SECURITIES 303,548 0.2
TOTAL INVESTMENTS
196,965,932 98.3
(Cost $202,970,556)
Other Assets in Excess of Liabilities
3,491,963 1.7
TOTAL NET ASSETS 200,457,895 100.0
ANALYSIS OF TOTAL ASSETS (unaudited)
% Total
Description Assets
TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING
94.7
NON-TRANSFERABLE SECURITIES
0.2
OTHER ASSETS
5.1
TOTAL 100.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
80
BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND
SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES (UNAUDITED) AS AT 31 DECEMBER 2016
Significant Purchases Cost
Security name Quantity (USD)
Simon Property Group Inc 59,600 11,588,334
Land Securities Group Plc 558,464 8,109,752
CyrusOne Inc 181,800 8,025,737
Kilroy Realty Corp 108,500 7,239,868
Cheung Kong Property Holdings Ltd 1,028,000 6,917,013
Intu Properties Plc 1,719,094 6,673,394
Brookdale Senior Living Inc 379,400 6,137,144
Brixmor Property Group Inc 204,500 5,544,940
Great Portland Estates Plc 626,839 5,379,144
Equity Residential 78,900 5,294,207
Gramercy Property Trust 647,000 5,265,969
Unibail-Rodamco SE 18,161 4,818,297
Vornado Realty Trust 50,200 4,805,535
Deutsche EuroShop AG 105,400 4,689,519
American Homes 4 Rent 229,000 4,420,720
SBA Communications Corp 37,800 4,291,056
LaSalle Hotel Properties 158,300 4,032,615
Highwoods Properties Inc 82,000 4,016,483
Mitsui Fudosan Co Ltd 174,200 3,975,342
AvalonBay Communities Inc 21,685 3,938,814
Essex Property Trust Inc 17,200 3,856,593
Welltower Inc 57,700 3,787,327
Wharf Holdings Ltd 649,900 3,735,063
Grand City Properties SA 205,300 3,452,006
Mitsubishi Estate Co Ltd 177,500 3,377,152
Global Logistic Properties Ltd 2,401,000 3,295,460
Westfield Corp 446,600 3,293,137
City Developments Ltd 517,100 3,285,693
Vonovia SE 94,900 3,269,428
Medical Properties Trust Inc 228,300 3,254,127
Vicinity Centres 1,403,900 3,224,808
Hilton Worldwide Holdings Inc 133,844 3,193,742
Hongkong Land Holdings Ltd 521,300 3,171,032
CBL & Associates Properties Inc 285,200 3,164,417
Hammerson Plc 409,861 3,137,256
American Campus Communities Inc 63,900 3,083,189
Public Storage 13,400 2,888,447
Physicians Realty Trust 170,302 2,851,745
Omega Healthcare Investors Inc 82,220 2,811,934
Alstria office REIT-AG 208,600 2,763,961
Boston Properties Inc 21,300 2,488,983
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
81
BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND
SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES (UNAUDITED) AS AT 31 DECEMBER 2016 (continued)
Significant Sales Proceeds
Security name Quantity (USD)
Simon Property Group Inc 59,525 11,630,642
Prologis Inc 243,000 11,105,923
Equity Residential 129,100 8,772,540
Ventas Inc 119,800 7,622,338
Host Hotels & Resorts Inc 452,500 7,205,069
Outfront Media Inc 320,599 7,043,173
Scentre Group 1,974,167 6,982,348
SL Green Realty Corp 68,100 6,949,779
Dexus Property Group 1,108,700 6,518,610
CyrusOne Inc 129,200 5,888,426
Gecina SA 38,300 5,229,048
Vonovia SE 162,600 5,010,068
Kilroy Realty Corp 75,300 4,925,861
Camden Property Trust 60,000 4,909,226
Deutsche EuroShop AG 105,400 4,855,418
Brandywine Realty Trust 335,100 4,723,412
Wharf Holdings Ltd 775,483 4,660,150
CA Immobilien Anlagen AG 248,800 4,504,031
Corporate Office Properties Trust 178,500 4,448,929
Welltower Inc 67,700 4,381,049
Mid-America Apartment Communities Inc 43,200 4,076,270
Alstria office REIT-AG 299,900 3,858,965
Unibail-Rodamco SE 14,800 3,785,733
Hudson Pacific Properties Inc 135,500 3,725,180
Atrium European Real Estate Ltd 950,927 3,692,730
Vornado Realty Trust 39,200 3,660,133
Highwoods Properties Inc 79,700 3,638,522
Mitsubishi Estate Co Ltd 187,300 3,587,643
Hongkong Land Holdings Ltd 581,900 3,532,741
Physicians Realty Trust 170,302 3,410,938
Nippon Building Fund Inc 596 3,352,070
SBA Communications Corp 28,600 3,076,894
GLP J-Reit 2,586 2,929,866
AvalonBay Communities Inc 16,300 2,822,863
Mitsui Fudosan Co Ltd 119,900 2,808,936
HCP Inc 79,700 2,683,407
Spirit Realty Capital Inc 186,400 2,464,017
Global Logistic Properties Ltd 1,764,200 2,398,910
Care Capital Properties Inc 89,300 2,385,104
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
82
BROOKFIELD US LISTED REAL ESTATE UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016
Value % Net
Shares USD Assets
INVESTMENTS
A) TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING
1) LISTED SECURITIES : COMMON STOCKS
UNITED STATES Communications SBA Communications Corp 13,200 1,363,032 2.1
Uniti Group Inc 52,500 1,334,025 2.0
Total Communications
2,697,057 4.1
Healthcare Brookdale Senior Living Inc 207,700 2,579,634 3.9
Care Capital Properties Inc 81,050 2,026,250 3.1
Medical Properties Trust Inc 121,400 1,493,220 2.3
Omega Healthcare Investors Inc 54,282 1,696,855 2.6
Welltower Inc 47,900 3,205,947 4.8
Total Healthcare
11,001,906 16.7
Hotel Hersha Hospitality Trust 47,706 1,025,679 1.6
Hilton Worldwide Holdings Inc 71,600 1,947,520 2.9
LaSalle Hotel Properties 65,600 1,998,832 3.0
Total Hotel
4,972,031 7.5
Mixed Kilroy Realty Corp 39,700 2,906,834 4.4
Total Mixed
2,906,834 4.4
Office Boston Properties Inc 16,100 2,025,058 3.1
Equity Commonwealth 23,100 698,544 1.1
Highwoods Properties Inc 25,600 1,305,856 2.0
Hudson Pacific Properties Inc 38,700 1,345,986 2.0
Total Office
5,375,444 8.2
Other CyrusOne Inc 59,300 2,652,489 4.0
QTS Realty Trust Inc 4,800 238,320 0.4
Total Other
2,890,809 4.4
Real Estate - Diversified Vornado Realty Trust 31,750 3,313,748 5.0
Total Real Estate - Diversified
3,313,748 5.0
Regional Malls CBL & Associates Properties Inc 273,750 3,148,125 4.8
Simon Property Group Inc 35,450 6,298,402 9.5
Total Regional Malls
9,446,527 14.3
Residential American Campus Communities Inc 43,000 2,140,110 3.2
American Homes 4 Rent 128,400 2,693,832 4.1
AvalonBay Communities Inc 14,400 2,550,960 3.8
Essex Property Trust Inc 11,600 2,697,000 4.1
Total Residential
10,081,902 15.2
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
83
BROOKFIELD US LISTED REAL ESTATE UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
Retail Acadia Realty Trust 19,990 653,273 1.0
Brixmor Property Group Inc 107,700 2,630,034 4.0
Washington Prime Group Inc 96,100 1,000,401 1.5
Total Retail
4,283,708 6.5
Self Storage Life Storage Inc 4,400 375,144 0.6
Public Storage 10,500 2,346,750 3.5
Total Self Storage
2,721,894 4.1
Strip Centers DDR Corp 86,100 1,314,747 2.0
Total Strip Centers
1,314,747 2.0
Triple Net Lease Gramercy Property Trust 227,400 2,087,532 3.2
MGM Growth Properties LLC 82,100 2,077,951 3.1
Total Triple Net Lease
4,165,483 6.3
TOTAL UNITED STATES
65,172,090 98.7
TOTAL LISTED SECURITIES : COMMON STOCKS
65,172,090 98.7
(Cost $67,521,443)
TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING 65,172,090 98.7
TOTAL INVESTMENTS
65,172,090 98.7
(Cost $67,521,443)
Other Assets in Excess of Liabilities
889,419 1.3
TOTAL NET ASSETS 66,061,509 100.0
ANALYSIS OF TOTAL ASSETS (unaudited) % Total
Description Assets
TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING
96.9
OTHER ASSETS
3.1
TOTAL 100.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
84
BROOKFIELD US LISTED REAL ESTATE UCITS FUND
SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES (UNAUDITED) AS AT 31 DECEMBER 2016
Significant Purchases Cost
Security name Quantity (USD)
Simon Property Group Inc 47,800 9,956,043
Equity Residential 97,100 6,888,666
Kilroy Realty Corp 93,600 6,169,474
Gramercy Property Trust 714,700 5,985,884
CyrusOne Inc 125,300 5,518,448
Vornado Realty Trust 53,600 5,220,589
Brixmor Property Group Inc 164,900 4,522,312
Welltower Inc 64,900 4,516,489
Brookdale Senior Living Inc 249,500 4,274,641
American Homes 4 Rent 227,300 4,115,256
MGM Growth Properties LLC 165,000 3,876,753
Acadia Realty Trust 102,790 3,631,282
Highwoods Properties Inc 69,300 3,502,091
LaSalle Hotel Properties 130,400 3,422,177
SBA Communications Corp 29,700 3,368,402
Prologis Inc 74,300 3,363,027
Essex Property Trust Inc 14,200 3,181,744
Physicians Realty Trust 178,577 3,179,359
SL Green Realty Corp 30,900 3,173,099
Camden Property Trust 36,700 3,095,164
CBL & Associates Properties Inc 259,900 3,010,127
Omega Healthcare Investors Inc 83,282 2,899,605
AvalonBay Communities Inc 15,500 2,873,154
Hudson Pacific Properties Inc 93,400 2,846,747
Care Capital Properties Inc 104,900 2,758,662
Spirit Realty Capital Inc 234,200 2,693,390
Sunstone Hotel Investors Inc 199,082 2,519,832
Public Storage 11,000 2,371,612
Outfront Media Inc 101,600 2,228,635
Brandywine Realty Trust 148,100 2,222,563
DiamondRock Hospitality Co 226,400 2,219,385
Urban Edge Properties 82,200 2,217,899
Hilton Worldwide Holdings Inc 93,600 2,174,056
Sabra Health Care REIT Inc 91,700 2,167,853
Equity Commonwealth 75,200 2,141,694
Boston Properties Inc 17,800 2,079,554
Ventas Inc 32,200 2,075,711
American Campus Communities Inc 43,000 2,073,648
Medical Properties Trust Inc 144,800 2,049,863
Liberty Property Trust 50,700 1,874,609
Uniti Group Inc 59,300 1,822,712
WP Glimcher Inc 163,600 1,723,866
DDR Corp 97,000 1,629,901
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
85
BROOKFIELD US LISTED REAL ESTATE UCITS FUND
SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES (UNAUDITED) AS AT 31 DECEMBER 2016 (continued)
Significant Sales Proceeds
Security name Quantity (USD)
Prologis Inc 193,700 9,410,819
Simon Property Group Inc 43,700 8,930,706
Equity Residential 134,300 8,699,474
Ventas Inc 98,100 6,513,025
SL Green Realty Corp 58,650 6,296,152
Camden Property Trust 70,900 6,044,481
Kilroy Realty Corp 87,000 5,894,992
Outfront Media Inc 225,956 5,033,485
Brandywine Realty Trust 329,650 4,937,061
Welltower Inc 69,000 4,925,966
Vornado Realty Trust 48,400 4,845,398
CyrusOne Inc 93,300 4,599,279
Gramercy Property Trust 487,300 4,411,357
Host Hotels & Resorts Inc 249,100 4,114,305
Highwoods Properties Inc 83,400 4,024,836
Sunstone Hotel Investors Inc 302,383 3,822,127
Corporate Office Properties Trust 143,300 3,798,267
Physicians Realty Trust 178,577 3,681,237
Mid-America Apartment Communities Inc 37,000 3,592,170
AvalonBay Communities Inc 20,200 3,584,615
Hudson Pacific Properties Inc 117,500 3,551,056
Care Capital Properties Inc 115,200 3,204,184
Spirit Realty Capital Inc 234,200 3,048,384
CBL & Associates Properties Inc 233,000 2,963,114
Acadia Realty Trust 82,800 2,857,996
SBA Communications Corp 23,700 2,601,560
Urban Edge Properties 82,200 2,398,943
DiamondRock Hospitality Co 226,400 2,344,355
Sabra Health Care REIT Inc 91,700 2,156,485
WP Glimcher Inc 209,400 2,131,994
MGM Growth Properties LLC 82,900 2,099,609
HCP Inc 61,600 2,045,914
Liberty Property Trust 50,700 2,029,918
American Homes 4 Rent 98,900 2,022,086
LaSalle Hotel Properties 64,800 1,711,470
Brixmor Property Group Inc 57,200 1,607,054
Equity Commonwealth 52,100 1,574,331
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
86
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE LONG SHORT UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016
Value % Net
Shares USD Assets
INVESTMENTS
A) TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING
1) LISTED SECURITIES : COMMON STOCKS
BRAZIL Electricity Transmission & Distribution
Transmissora Alianca de Energia Eletrica SA 20,100 128,084 0.8
Total Electricity Transmission & Distribution
128,084 0.8
Toll Roads CCR SA 26,600 130,438 0.8
Total Toll Roads
130,438 0.8
Water Cia de Saneamento Basico do Estado de Sao Paulo 14,200 123,256 0.8
Cia de Saneamento do Parana 52,700 174,064 1.1
Total Water
297,320 1.9
TOTAL BRAZIL
555,842 3.5
CANADA Pipelines Pembina Pipeline Corp 10,700 334,791 2.1
TransCanada Corp 4,300 194,118 1.2
Veresen Inc 20,400 199,429 1.3
Total Pipelines
728,338 4.6
TOTAL CANADA
728,338 4.6
FRANCE Toll Roads Groupe Eurotunnel SE 14,100 134,220 0.9
Total Toll Roads
134,220 0.9
TOTAL FRANCE
134,220 0.9
GERMANY Electricity Transmission & Distribution Innogy SE 9,300 325,370 2.1
Total Electricity Transmission & Distribution
325,370 2.1
TOTAL GERMANY
325,370 2.1
GREAT BRITAIN Electricity Transmission & Distribution National Grid Plc 20,300 238,295 1.5
Total Electricity Transmission & Distribution
238,295 1.5
TOTAL GREAT BRITAIN
238,295 1.5
ITALY Electric Utilities & Generation Enel SpA 55,100 243,393 1.6
Total Electric Utilities & Generation
243,393 1.6
Toll Roads Atlantia SpA 13,600 319,311 2.0
Total Toll Roads
319,311 2.0
TOTAL ITALY
562,704 3.6
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
87
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE LONG SHORT UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
MEXICO Pipelines Infraestructura Energetica Nova SAB de CV 37,500 164,369 1.1
Total Pipelines
164,369 1.1
Toll Roads OHL Mexico SAB de CV 420,100 415,786 2.6
Total Toll Roads
415,786 2.6
TOTAL MEXICO
580,155 3.7
SPAIN Communications Cellnex Telecom SAU 21,800 314,207 2.0
Total Communications
314,207 2.0
Electric Utilities & Generation EDP Renovaveis SA 8,100 51,432 0.3
Total Electric Utilities & Generation
51,432 0.3
Toll Roads Ferrovial SA 16,332 292,759 1.9
Total Toll Roads
292,759 1.9
TOTAL SPAIN
658,398 4.2
SWITZERLAND Airports Flughafen Zuerich AG 2,000 371,722 2.4
Total Airports
371,722 2.4
TOTAL SWITZERLAND
371,722 2.4
UNITED STATES Communications SBA Communications Corp 3,200 330,432 2.1
Total Communications
330,432 2.1
Gas Utilities Southwest Gas Corp 2,500 191,550 1.2
Total Gas Utilities
191,550 1.2
Midstream Cone Midstream Partners LP 17,300 407,415 2.6
Enable Midstream Partners LP 14,300 224,939 1.4
Targa Resources Corp 7,126 399,555 2.5
Western Gas Partners LP 5,800 340,808 2.2
Williams Cos Inc 11,100 345,654 2.2
Total Midstream
1,718,371 10.9
Pipelines Boardwalk Pipeline Partners LP 19,300 335,048 2.1
Energy Transfer Partners LP 7,500 268,575 1.7
Enterprise Products Partners LP 14,100 381,263 2.5
MPLX LP 7,200 249,264 1.6
Plains All American Pipeline LP 7,200 232,488 1.5
Williams Partners LP 8,800 334,664 2.1
Total Pipelines
1,801,302 11.5
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
88
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE LONG SHORT UCITS FUND SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
Telecommunications American Tower Corp 4,200 443,856 2.8
Total Telecommunications
443,856 2.8
TOTAL UNITED STATES
4,485,511 28.5
TOTAL LISTED SECURITIES : COMMON STOCKS
8,640,555 55.0
(Cost $7,795,228)
TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING 8,640,555 55.0
B) OTHER TRANSFERABLE SECURITIES
1) OTHER TRANSFERABLE SECURITIES : COMMON STOCK
UNITED STATES
Midstream
Rice Midstream Partners LP 31,090 764,191 4.9
Total Midstream 764,191 4.9
TOTAL UNITED STATES 764,191 4.9
TOTAL OTHER TRANSFERABLE SECURITIES : COMMON STOCK
(Cost $551,273) 764,191 4.9
NON-TRANSFERABLE SECURITIES CFD - Equities (see note 10 for other details)
(87,650) (0.6)
TOTAL NON-TRANSFERABLE SECURITIES (87,650) (0.6)
TOTAL INVESTMENTS
9,317,096 59.3
(Cost $8,346,501)
Other Assets in Excess of Liabilities
6,394,173 40.7
TOTAL NET ASSETS 15,711,269 100.0
ANALYSIS OF TOTAL ASSETS (unaudited)
% Total
Description Assets
TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING
52.0
OTHER TRANSFERABLE SECURITIES 4.6
DERIVATIVES INSTRUMENTS
0.1
OTHER ASSETS
43.3
TOTAL 100.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
89
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE LONG SHORT UCITS FUND
SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES (UNAUDITED) AS AT 31 DECEMBER 2016
Significant Purchases Cost
Security name Quantity (USD)
Williams Cos Inc 123,400 2,173,647
OHL Mexico SAB de CV 1,326,508 1,614,815
Ferrovial SA 43,277 864,543
Rice Midstream Partners LP 42,831 817,576
Energy Transfer Partners LP 21,700 757,132
Enterprise Products Partners LP 28,300 734,600
Canadian Pacific Railway Ltd 5,100 726,750
Enav SpA 190,500 690,101
Williams Partners LP 21,800 540,195
Pembina Pipeline Corp 20,100 522,997
Infrastrutture Wireless Italiane SpA 101,700 516,140
Innogy SE 12,000 482,825
MPLX LP 16,400 482,725
DONG Energy A/S 13,300 476,064
EQT Midstream Partners LP 5,900 454,633
Sunoco Logistics Partners LP 15,800 450,748
Targa Resources Corp 19,082 429,153
SemGroup Corp 16,000 406,308
NextEra Energy Partners LP 15,300 397,800
Cone Midstream Partners LP 17,300 372,231
Atlantia SpA 13,600 321,877
Boardwalk Pipeline Partners LP 19,300 318,659
Western Gas Partners LP 5,800 311,630
Cellnex Telecom SAU 21,800 307,169
SBA Communications Corp 3,000 291,653
Tokyo Gas Co Ltd 65,400 282,879
Abertis Infraestructuras SA 17,700 270,122
California Water Service Group 10,900 261,971
National Grid Plc 20,300 239,413
Plains All American Pipeline LP 7,200 230,777
Enel SpA 55,100 230,022
Enbridge Energy Partners LP 13,000 206,987
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
90
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE LONG SHORT UCITS FUND
SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES (UNAUDITED) AS AT 31 DECEMBER 2016 (continued)
Significant Sales Proceeds
Security name Quantity (USD)
Williams Cos Inc 112,300 2,060,030
OHL Mexico SAB de CV 1,029,908 1,317,916
Institutional Cash Series Plc - Institutional US Dollar Liquidity Fund 1,126,477 1,126,477
Rice Midstream Partners LP 39,800 837,108
Energy Transfer Partners LP 22,200 776,855
Enav SpA 190,500 761,555
Canadian Pacific Railway Ltd 5,100 742,377
American Water Works Co Inc 9,600 642,815
Williams Partners LP 19,200 597,035
Sunoco Logistics Partners LP 21,100 555,768
Ferrovial SA 27,300 546,334
Veresen Inc 67,700 512,880
DONG Energy A/S 13,300 512,362
Groupe Eurotunnel SE 44,400 508,159
Targa Resources Corp 15,552 492,747
Enterprise Products Partners LP 19,500 492,548
NiSource Inc 18,200 470,549
SemGroup Corp 16,000 453,186
EQT Midstream Partners LP 5,900 448,569
Infrastrutture Wireless Italiane SpA 101,700 439,482
Grupo Aeroportuario del Centro Norte SAB de CV 76,400 420,582
ONE Gas Inc 8,300 415,119
NextEra Energy Partners LP 15,300 394,207
Summit Midstream Partners LP 20,700 367,150
Aena SA 2,700 367,102
California Water Service Group 10,900 362,745
SBA Communications Corp 3,500 323,448
Union Pacific Corp 3,900 308,599
MPLX LP 9,200 283,360
Tokyo Gas Co Ltd 65,400 272,062
Origin Energy Ltd 85,300 270,854
Abertis Infraestructuras SA 17,700 264,643
Pembina Pipeline Corp 9,400 255,938
Cosan Ltd 84,600 241,776
Enbridge Energy Partners LP 13,000 240,986
Noble Midstream Partners LP 8,800 229,591
Promotora y Operadora de Infraestructura SAB de CV 17,800 226,676
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
91
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016
Value % Net
Shares USD Assets
INVESTMENTS
A) TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING
1) LISTED SECURITIES : COMMON STOCKS
AUSTRALIA Pipelines APA Group
45,900
284,834 0.4
Total Pipelines
284,834 0.4
Real Estate - Diversified Dexus Property Group
48,100
335,057 0.5
Total Real Estate - Diversified
335,057 0.5
Retail Vicinity Centres
151,500
328,006 0.5
Westfield Corp
78,137
530,711 0.8
Total Retail
858,717 1.3
Toll Roads Transurban Group
106,634
796,845 1.1
Total Toll Roads
796,845 1.1
TOTAL AUSTRALIA 2,275,453 3.3
BERMUDA ISLANDS Office Hongkong Land Holdings Ltd
91,708
580,512 0.8
Total Office
580,512 0.8
TOTAL BERMUDA ISLANDS 580,512 0.8
BRAZIL Toll Roads CCR SA
31,400
153,975 0.2
Total Toll Roads
153,975 0.2
Water Cia de Saneamento Basico do Estado de Sao Paulo
33,500
290,780 0.4
Total Water
290,780 0.4
TOTAL BRAZIL 444,755 0.6
CANADA Pipelines Enbridge Inc
33,290
1,402,546 2.0
Pembina Pipeline Corp
27,280
853,981 1.2
TransCanada Corp
37,900
1,710,947 2.5
Veresen Inc
16,976
165,956 0.2
Total Pipelines
4,133,430 5.9
Rail Canadian National Railway Co
2,100
141,498 0.2
Total Rail
141,498 0.2
TOTAL CANADA 4,274,928 6.1
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
92
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
CAYMAN ISLANDS Office SOHO China Ltd
382,100
188,262 0.3
Total Office
188,262 0.3
Real Estate - Diversified Cheung Kong Property Holdings Ltd
96,005
588,799 0.8
Total Real Estate - Diversified
588,799 0.8
TOTAL CAYMAN ISLANDS 777,061 1.1
DENMARK Other DONG Energy A/S
3,400
129,064 0.2
Total Other
129,064 0.2
TOTAL DENMARK 129,064 0.2
FRANCE Communications Eutelsat Communications SA
24,300
471,472 0.7
Total Communications
471,472 0.7
Real Estate - Diversified Unibail-Rodamco SE
2,264
541,468 0.8
Total Real Estate - Diversified
541,468 0.8
Toll Roads Groupe Eurotunnel SE
34,820
331,786 0.5
Total Toll Roads
331,786 0.5
TOTAL FRANCE 1,344,726 2.0
GERMANY Electricity Transmission & Distribution Innogy SE
8,300
290,384 0.4
Total Electricity Transmission & Distribution
290,384 0.4
Office Alstria office REIT-AG
37,000
463,236 0.7
Total Office
463,236 0.7
Real Estate Management/Service Vonovia SE
17,500
569,193 0.8
Total Real Estate Management/Service
569,193 0.8
TOTAL GERMANY 1,322,813 1.9
GREAT BRITAIN Electricity Transmission & Distribution National Grid Plc
132,229
1,554,807 2.2
Total Electricity Transmission & Distribution
1,554,807 2.2
Diversified - Real Estate Land Securities Group Plc
52,808
695,589 1.0
Total Diversified - Real Estate
695,589 1.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
93
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
Office Great Portland Estates Plc
69,126
571,003 0.8
Total Office
571,003 0.8
Retail Hammerson Plc
85,553
605,739 0.9
Intu Properties Plc
190,603
662,514 0.9
Total Retail
1,268,253 1.8
Residential UNITE Group Plc
30,800
230,632 0.3
Total Residential
230,632 0.3
Water Pennon Group Plc
37,200
380,140 0.5
Severn Trent Plc
13,800
378,895 0.5
United Utilities Group Plc
25,690
286,012 0.4
Total Water
1,045,047 1.4
TOTAL GREAT BRITAIN 5,365,331 7.5
HONG KONG Gas Utilities Hong Kong & China Gas Co Ltd
195,000
345,576 0.5
Total Gas Utilities
345,576 0.5
Pipelines Beijing Enterprises Holdings Ltd
26,800
126,687 0.2
Total Pipelines
126,687 0.2
Real Estate - Diversified Swire Properties Ltd
77,100
212,809 0.3
Total Real Estate - Diversified
212,809 0.3
Retail Wharf Holdings Ltd
74,222
493,496 0.7
Total Retail
493,496 0.7
TOTAL HONG KONG 1,178,568 1.7
ITALY Electric Utilities & Generation Enel SpA
64,500
284,915 0.4
Total Electric Utilities & Generation
284,915 0.4
Pipelines Italgas SpA
28,635
112,898 0.2
Snam SpA
143,179
591,085 0.8
Total Pipelines
703,983 1.0
Toll Roads Atlantia SpA
17,500
410,878 0.6
Total Toll Roads
410,878 0.6
TOTAL ITALY 1,399,776 2.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
94
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
JAPAN Gas Utilities Tokyo Gas Co Ltd
102,000
462,535 0.7
Total Gas Utilities
462,535 0.7
Office Mitsubishi Estate Co Ltd
29,165
582,000 0.8
Total Office
582,000 0.8
Other Leopalace21 Corp
4,300
23,816 -
Total Other
23,816 -
Real Estate - Diversified Mitsui Fudosan Co Ltd
22,200
514,863 0.7
Total Real Estate - Diversified
514,863 0.7
Residential Nippon Accommodations Fund Inc
49
214,678 0.3
Total Residential
214,678 0.3
Retail Kenedix Retail REIT Corp
44
100,498 0.1
Total Retail
100,498 0.1
TOTAL JAPAN 1,898,390 2.6
LUXEMBOURG Residential Grand City Properties SA
22,792
415,649 0.6
Total Residential
415,649 0.6
TOTAL LUXEMBOURG 415,649 0.6
MEXICO Airports Grupo Aeroportuario del Centro Norte SAB de CV
38,800
168,052 0.2
Total Airports
168,052 0.2
Pipelines Infraestructura Energetica Nova SAB de CV
31,400
137,631 0.2
Total Pipelines
137,631 0.2
TOTAL MEXICO 305,683 0.4
NEW ZEALAND Airports Auckland International Airport Ltd
66,700
290,687 0.4
Total Airports
290,687 0.4
TOTAL NEW ZEALAND 290,687 0.4
SINGAPORE Diversified - Real Estate CapitaLand Ltd
96,512
201,749 0.3
City Developments Ltd
54,600
312,929 0.4
Total Diversified - Real Estate
514,678 0.7
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
95
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
Industrial Global Logistic Properties Ltd
271,900
414,051 0.6
Total Industrial
414,051 0.6
TOTAL SINGAPORE 928,729 1.3
SPAIN Communications Cellnex Telecom SAU
24,000
345,916 0.5
Total Communications
345,916 0.5
Toll Roads Ferrovial SA
39,551
708,971 1.0
Total Toll Roads
708,971 1.0
TOTAL SPAIN 1,054,887 1.5
SWITZERLAND Airports Flughafen Zuerich AG
1,700
315,964 0.5
Total Airports
315,964 0.5
TOTAL SWITZERLAND 315,964 0.5
UNITED ARAB EMIRATES Ports DP World Ltd
4,900
85,799 0.1
Total Ports
85,799 0.1
TOTAL UNITED ARAB EMIRATES 85,799 0.1
UNITED STATES Communications SBA Communications Corp
12,040
1,243,250 1.8
Uniti Group Inc
8,300
210,903 0.3
Total Communications
1,454,153 2.1
Electric Utilities & Generation NextEra Energy Inc
4,500
537,570 0.8
Ameren Corp
9,000
472,140 0.7
Edison International
5,400
388,746 0.6
Total Electric Utilities & Generation
1,398,456 2.1
Electricity Transmission & Distribution PS Business Parks Inc 5.7%
2,532
58,970 0.1
PS Business Parks Inc 5.75%
3,262
75,939 0.1
Total Electricity Transmission & Distribution
134,909 0.2
Energy Tesoro Logistics LP
3,400
172,754 0.2
Total Energy
172,754 0.2
Gas Utilities NiSource Inc
22,030
487,744 0.7
ONE Gas Inc
3,250
207,870 0.3
Southwest Gas Corp
4,500
344,790 0.5
Total Gas Utilities
1,040,404 1.5
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
96
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
Healthcare Brookdale Senior Living Inc
39,100
485,622 0.7
Care Capital Properties Inc
8,483
212,075 0.3
Medical Properties Trust Inc
20,300
249,690 0.4
Omega Healthcare Investors Inc
12,395
387,468 0.6
Welltower Inc
5,884
393,816 0.6
Welltower Inc 6.5%
7,000
175,980 0.3
Total Healthcare
1,904,651 2.9
Hotel Hilton Worldwide Holdings Inc
12,567
341,822 0.5
Hersha Hospitality Trust
7,800
167,700 0.2
LaSalle Hotel Properties
14,000
426,580 0.6
Total Hotel
936,102 1.3
Midstream Cheniere Energy Inc
12,600
522,018 0.7
CorEnergy Infrastructure Trust Inc 7.375%
5,900
145,199 0.2
Enable Midstream Partners LP
7,100
111,683 0.2
EQT Midstream Partners LP
5,170
396,436 0.6
Kinder Morgan Inc
88,900
1,841,119 2.6
Phillips 66 Partners LP
3,600
175,104 0.3
Rice Midstream Partners LP
15,800
388,364 0.5
Sunoco Logistics Partners LP
16,020
384,800 0.6
Targa Resources Corp
15,060
844,414 1.2
Taubman Centers Inc 6.5%
7,144
175,742 0.3
Western Gas Partners LP
7,290
428,360 0.6
Williams Cos Inc
33,280
1,036,339 1.5
Total Midstream
6,449,578 9.3
Mixed Kilroy Realty Corp
6,800
497,896 0.7
Kilroy Realty Corp 6.375%
5,842
146,225 0.2
Total Mixed
644,121 0.9
Office Boston Properties Inc
2,200
276,716 0.4
CoreSite Realty Corp 7.25%
14,200
358,976 0.5
Digital Realty Trust Inc 5.875%
2,100
50,253 0.1
Equity Commonwealth
409
12,368 -
Equity Commonwealth 5.75% 01/08/2042
3,800
91,124 0.1
Equity Commonwealth 6.5%
11,022
279,408 0.4
Highwoods Properties Inc
6,300
321,363 0.5
Hudson Pacific Properties Inc
6,300
219,114 0.3
Vornado Realty Trust 5.4%
3,811
85,557 0.1
Total Office
1,694,879 2.4
Other CyrusOne Inc
9,320
416,884 0.6
QTS Realty Trust Inc
600
29,790 0.0
Total Other
446,674 0.6
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
97
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
Pipelines Boardwalk Pipeline Partners LP
28,590
496,322 0.7
Buckeye Partners LP
1,760
116,442 0.2
Enbridge Energy Management LLC
7,430
192,437 0.3
Enbridge Energy Partners LP
13,800
351,624 0.5
Energy Transfer Partners LP
17,220
616,648 0.9
Enterprise Products Partners LP
32,390
875,826 1.3
MPLX LP
11,466
396,953 0.6
NuStar GP Holdings LLC
4,200
121,380 0.2
Plains All American Pipeline LP
8,700
280,923 0.4
Sempra Energy
6,660
670,262 1.0
Spectra Energy Corp
7,020
288,452 0.4
Williams Partners LP
4,660
177,220 0.3
Total Pipelines
4,584,489 6.8
Rail Union Pacific Corp
1,400
145,152 0.2
Total Rail
145,152 0.2
Real Estate - Diversified Vornado Realty Trust
6,495
677,883 1.0
Total Real Estate - Diversified
677,883 1.0
Regional Malls CBL & Associates Properties Inc
40,600
466,900 0.7
Simon Property Group Inc
8,664
1,539,333 2.2
Total Regional Malls
2,006,233 2.9
Residential American Campus Communities Inc
7,100
353,367 0.5
American Homes 4 Rent
21,600
453,168 0.6
American Homes 4 Rent 5%
11,174
308,179 0.4
American Homes 4 Rent 5.5%
8,717
236,667 0.3
American Homes 4 Rent 6.35%
4,300
105,393 0.2
AvalonBay Communities Inc
3,664
649,078 0.9
Essex Property Trust Inc
1,878
436,635 0.6
Total Residential
2,542,487 3.5
Retail Brixmor Property Group Inc
21,500
525,030 0.8
Washington Prime Group Inc
16,000
166,560 0.2
Total Retail
691,590 1.0
Self Storage Life Storage Inc
700
59,682 0.1
Public Storage
1,500
335,250 0.5
Public Storage 4.95%
21,600
457,920 0.7
Total Self Storage
852,852 1.3
Strip Centers DDR Corp
12,700
193,929 0.3
DDR Corp 6.25%
2,800
66,724 0.1
Total Strip Centers
260,653 0.4
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
98
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
Telecommunications American Tower Corp
19,670
2,078,726 3.0
Total Telecommunications
2,078,726 3.0
Transmission & Distribution PG&E Corp
26,480
1,609,190 2.3
Total Transmission & Distribution
1,609,190 2.3
Triple Net Lease EPR Properties 5.75%
3,403
96,985 0.1
Gramercy Property Trust
35,512
326,000 0.5
Gramercy Property Trust 7.125%
5,900
155,170 0.2
Lexington Realty Trust 6.5%
3,500
174,650 0.2
MGM Growth Properties LLC
10,981
277,929 0.4
National Retail Properties Inc 5.2%
5,100
110,058 0.2
Total Triple Net Lease
1,140,792 1.6
Water American Water Works Co Inc
10,040
726,494 1.0
Total Water
726,494 1.0
TOTAL UNITED STATES
33,593,222 48.5
TOTAL LISTED SECURITIES : COMMON STOCKS
57,981,997 83.1
(Cost $58,303,638)
Interest Principal Value % Net
Rate Maturity Amount USD Assets
INVESTMENTS
2) LISTED SECURITIES : BONDS
CANADA Energy Precision Drilling Corp 6.63
11/15/20
100,000
60,688 0.1
Total Energy
60,688 0.1
TOTAL CANADA
60,688 0.1
LUXEMBOURG Telecommunications Intelsat Luxembourg SA 7.75
06/01/21
800,000
262,000 0.4
Total Telecommunications
262,000 0.4
TOTAL LUXEMBOURG
262,000 0.4
MARSHALL ISLANDS Transportation Teekay Offshore Partners LP/Teekay Offshore Finance Corp 6.00
07/30/19
100,000
84,000 0.1
Total Transportation
84,000 0.1
TOTAL MARSHALL ISLANDS
84,000 0.1
UNITED STATES Basic Industry AK Steel Corp 7.63
05/15/20
125,000
127,500 0.2
Toll Brothers Finance Corp 4.88
11/15/25
225,000
221,062 0.3
Total Basic Industry
348,562 0.5
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
99
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Interest Principal Value % Net
Rate Maturity Amount USD Assets
Capital Goods Terex Corp 6.00
05/15/21
125,000
127,812 0.2
Total Capital Goods
127,812 0.2
Energy Concho Resources Inc 5.50
04/01/23
350,000
362,705 0.5
Crestwood Midstream Partners LP / Crestwood Midstream Finance Corp 6.25
04/01/23
175,000
178,500 0.3
Suburban Propane Partners LP/Suburban Energy Finance Corp 5.50
06/01/24
175,000
177,188 0.3
Total Energy
718,393 1.1
Healthcare CHS/Community Health Systems Inc 6.88
02/01/22
425,000
295,375 0.4
Tenet Healthcare Corp 8.13
04/01/22
325,000
306,638 0.4
Total Healthcare
602,013 0.8
Media CCO Holdings LLC / CCO Holdings Capital Corp 5.75
01/15/24
275,000
287,375 0.4
Total Media
287,375 0.4
Telecommunications CenturyLink Inc 7.65
03/15/42
250,000
218,750 0.3
Crown Castle International Corp 5.25
01/15/23
175,000
188,344 0.3
Frontier Communications Corp 11.00
09/15/25
200,000
206,500 0.3
Total Telecommunications
613,594 0.9
Utility AES Corp/VA 4.88
05/15/23
200,000
197,540 0.3
NRG Energy Inc 6.25
07/15/22
225,000
225,562 0.3
Total Utility
423,102 0.6
TOTAL UNITED STATES
3,120,851 4.5
TOTAL LISTED SECURITIES : BONDS
3,527,539 5.1
(Cost $3,776,522)
TOTAL TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING 61,509,536 88.2
B) OTHER TRANSFERABLE SECURITIES DEALT ON AN OTHER REGULATED MARKET
1) OTHER ORGANISED MARKET : BONDS
CANADA Basic Industry Hudbay Minerals Inc 7.63
01/15/25
200,000
207,876 0.3
Total Basic Industry
207,876 0.3
TOTAL CANADA
207,876 0.3
LUXEMBOURG Basic Industry INEOS Group Holdings SA 5.63
08/01/24
350,000
347,375 0.5
Total Basic Industry
347,375 0.5
TOTAL LUXEMBOURG
347,375 0.5
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
100
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Interest Principal Value % Net
Rate Maturity Amount USD Assets
MARSHALL ISLANDS Services Dynagas LNG Partners LP / Dynagas Finance Inc 6.25
10/30/19
175,000
167,125 0.2
Total Services
167,125 0.2
TOTAL MARSHALL ISLANDS
167,125 0.2
UNITED STATES Energy Blue Racer Midstream LLC / Blue Racer Finance Corp 6.13
11/15/22
200,000
200,000 0.3
EP Energy LLC / Everest Acquisition Finance Inc 6.38
06/15/23
225,000
177,750 0.3
Global Partners LP / GLP Finance Corp 6.25
07/15/22
175,000
167,671 0.2
MPLX LP 4.88
12/01/24
325,000
334,651 0.5
Range Resources Corp 5.75
06/01/21
300,000
314,250 0.5 Targa Resources Partners LP / Targa Resources Partners Finance Corp 5.25
05/01/23
325,000
328,250 0.5
Total Energy
1,522,572 2.3
Healthcare HCA Inc 5.25
06/15/26
350,000
361,812 0.5
Quorum Health Corp 11.63
04/15/23
75,000
62,813 0.1
Total Healthcare
424,625 0.6
Media Lamar Media Corp 5.38
01/15/24
200,000
207,000 0.3
Mediacom Broadband LLC / Mediacom Broadband Corp 6.38
04/01/23
275,000
288,750 0.4
Total Media
495,750 0.7
Services Boyd Gaming Corp 6.38
04/01/26
225,000
242,325 0.3
MGM Growth Properties Operating Partnership LP / MGP Finance Co-Issuer Inc 5.63
05/01/24
225,000
235,687 0.3
United Rentals North America Inc 5.75
11/15/24
225,000
236,250 0.3
Total Services
714,262 0.9
Telecommunications CyrusOne LP / CyrusOne Finance Corp 6.38
11/15/22
175,000
184,188 0.3
FairPoint Communications Inc 8.75
08/15/19
275,000
287,031 0.4
Level 3 Financing Inc 5.38
05/01/25
225,000
229,500 0.3
Windstream Services LLC 7.50
06/01/22
325,000
318,500 0.5
Zayo Group LLC / Zayo Capital Inc 6.00
04/01/23
200,000
208,000 0.3
Total Telecommunications
1,227,219 1.8
Transportation Watco Cos LLC / Watco Finance Corp 6.38
04/01/23
200,000
207,000 0.3
Total Transportation
207,000 0.3
Utility Dynegy Inc 6.75
11/01/19
125,000
127,187 0.2
NRG Yield Operating LLC 5.38
08/15/24
300,000
301,500 0.4
Total Utility
428,687 0.6
TOTAL UNITED STATES
5,020,115 7.2
TOTAL OTHER ORGANISED MARKET : BONDS
5,742,491 8.2
(Cost $5,610,099)
TOTAL OTHER TRANSFERABLE SECURITIES DEALT ON AN OTHER REGULATED MARKET
5,742,491 8.2
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
101
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
Value % Net
Shares USD Assets
C) OTHER TRANSFERABLE SECURITIES
1) OTHER TRANSFERABLE SECURITIES : COMMON STOCK
UNITED STATES Midstream Rice Midstream Partners LP
1,355
30,875 -
Total Midstream
30,875 -
TOTAL UNITED STATES
30,875 -
TOTAL OTHER TRANSFERABLE SECURITIES : COMMON STOCK
30,875 -
(Cost $17,683)
Interest Principal Value % net
Rate Maturity Amount USD assets
2) OTHER TRANSFERABLE SECURITIES : TERM LOANS
AUSTRALIA Term Loans FMG Resources August 2006 Pty Ltd 3.79
06/30/19
115,635
115,866 0.2
Total Term Loans
115,866 0.2
TOTAL AUSTRALIA 115,866 0.2
CANADA Term Loans MEG Energy Corp 3.80
03/31/20
247,656
240,226 0.3
Total Term Loans
240,226 0.3
TOTAL CANADA 240,226 0.3
UNITED STATES Term Loans Cwst Frn 0.00
10/07/23
275,000
277,236 0.4
Total Term Loans
277,236 0.4
TOTAL UNITED STATES 277,236 0.4
TOTAL OTHER TRANSFERABLE SECURITIES : TERM LOANS 633,328 0.9
(Cost $566,747)
TOTAL OTHER TRANSFERABLE SECURITIES 664,203 0.9
TOTAL INVESTMENTS
67,916,230 97.3
(Cost $68,274,689)
Other Assets in Excess of Liabilities
1,897,698 2.7
TOTAL NET ASSETS 69,813,928 100.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
102
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF INVESTMENTS AS AT 31 DECEMBER 2016 (continued)
ANALYSIS OF TOTAL ASSETS (unaudited) % Total
Description Assets
TRANSFERABLE SECURITIES ADMITTED TO AN OFFICIAL STOCK EXCHANGE LISTING 87.1
OTHER TRANSFERABLE SECURITIES DEALT ON AN OTHER REGULATED MARKET
8.1
OTHER TRANSFERABLE SECURITIES
0.9
OTHER ASSETS
3.9
TOTAL 100.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
103
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES (UNAUDITED) AS AT 31 DECEMBER 2016
Significant Purchases Cost
Security name Quantity (USD)
Kinder Morgan Inc 112,900 2,174,382
National Grid Plc 150,500 1,941,654
TransCanada Corp 40,400 1,715,454
American Tower Corp 14,100 1,540,329
Simon Property Group Inc 7,000 1,395,857
SBA Communications Corp 12,700 1,393,660
Enbridge Inc 31,500 1,350,672
PG&E Corp 20,700 1,284,548
Land Securities Group Plc 65,300 919,511
Enterprise Products Partners LP 33,230 895,130
Ferrovial SA 45,600 878,112
Targa Resources Corp 24,508 870,317
Innogy SE 21,500 865,061
Williams Cos Inc 35,500 831,893
Cheung Kong Property Holdings Ltd 119,700 790,609
Intu Properties Plc 201,000 784,817
Kilroy Realty Corp 11,500 750,553
Great Portland Estates Plc 86,826 726,572
Pembina Pipeline Corp 23,700 695,514
Brookdale Senior Living Inc 42,200 694,453
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BROOKFIELD REAL ASSETS SECURITIES UCITS FUND
SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES (UNAUDITED) AS AT 31 DECEMBER 2016 (continued)
Significant Sales Proceeds
Security name Quantity (USD)
Prologis Inc 24,000 1,174,274
Crown Castle International Corp 11,680 1,081,041
Simon Property Group Inc 4,436 902,274
SL Green Realty Corp 8,200 875,754
Equity Residential 12,900 861,178
Enterprise Products Partners LP 32,310 800,565
National Grid Plc 60,081 776,987
Host Hotels & Resorts Inc 44,500 750,231
Syngenta AG 8,249 699,333
Aena SA 4,900 695,330
Kinder Morgan Inc 38,380 679,932
Columbia Pipeline Group Inc 26,560 676,377
Eversource Energy 12,130 674,379
Ventas Inc 9,800 661,956
Scentre Group 174,500 650,271
Deutsche EuroShop AG 13,700 636,287
HCA Inc 5.875% 01/05/2023 600,000 634,525
Outfront Media Inc 26,900 613,056
Targa Resources Corp 14,600 587,373
Wharf Holdings Ltd 80,078 541,419
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APPENDIX
Remuneration Policy In line with the requirements of the UCITS Regulations, the Company is required to adopt a remuneration policy which is consistent with the principles outlined in the European Communities (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2016. The remuneration policies are designed to ensure that any relevant conflicts of interest can be managed appropriately at all times and that the remuneration of its senior staff is in line with the risk policies and objectives of the sub-funds the Company manages. As this report is made before the completion of the first full calendar year after the requirements became effective, the Company does not consider that the quantitative remuneration data available to it is sufficiently relevant or that it provides a proper basis for comparison and it has therefore elected not to make any quantitative disclosures in accordance with the European Communities (Undertakings for Collective Investment in Transferable Securities) (Amendment) Regulations 2016. Operational Risk Operational risk comprises the risk that deficiencies in the effectiveness and accuracy of information systems or internal controls will result in a material loss. The risk arises from human error, systems failures, inadequate procedures or internal management controls and these are mitigated by the following controls:
The valuation standards and systems utilised by the Administrator are consistent with current industry standards, with derivatives valued at market value and exposures stated on a delta-adjusted basis.
Valuation/pricing of all financial derivative instruments are sourced and reported independently, using appropriate methodologies as appropriate for the instrument.
There is segregation of duties between the Investment Manager and the Administrator;
Operational control procedures are in place to enable prompt and accurate recording of physical and derivative transactions and protect the integrity of systems and portfolio information. All trades are booked on trade date and the transaction history cannot be deleted from the system;
Independent reconciliations of portfolio holdings and frequent broker confirmations are carried out by both the Investment Manager and the Administrator on a monthly basis and signed off by senior personnel;
New types of derivative instruments must be approved for use by the Board after consideration of the investment and operational risks and requirements and documented business continuity/disaster recovery plans are in place for both the Investment Manager and the Administrator.
The Investment Manager analyses and monitors the portfolios of the sub-funds on a daily basis. Exposures are measured by market, asset class, sector and market capitalisation. Pre and post trade compliance monitoring is carried out to ensure that there are no breaches of the sub-funds’ investment guidelines. Securities Financing Transactions
As the Company undertakes securities lending it is required to report on Securities Financing Transactions
(as defined in Article 3 of Regulation (EU) 2015/2365, securities financing transactions include repurchase
transactions, securities on commodities lending and securities on commodities borrowing and margin lending
transactions).
Concentration Data
Top 10 Issuers
Issuer Name Country Name Amount of Collateral USD
Rice Midstream Partners LP United States 1,200,000
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
106
APPENDIX (continued)
Securities Financing Transactions (continued)
Top 10 Counterparties
Counterparty Name Country Name Amount of Collateral USD
JPMorgan Chase Bank United States 1,200,000
Aggregate Transaction Data
Type of Collateral
Collateral Amount of Collateral USD
Cash 1,200,000
Maturity Tenure of Collateral
Maturity Amount of Collateral USD
Not Applicable 1,200,000
Currencies of Securities Collateral
Countries of Counterparties
Countries Amount of Collateral USD
United States 1,200,000
Safe Keeping of Collateral Received
Custodians Amount of Collateral Asset Safe-Kept USD
RBC IS Trust 1,200,000
Currencies Amount of Collateral USD
USD 1,200,000