2016 For the Six Month Period Ended 30 June 2016 INTERIM REPORT AND UNAUDITED FINANCIAL STATEMENTS Brookfield Investment Management BROOKFIELD INVESTMENT FUNDS (UCITS) PLC An open-ended investment company with variable capital authorised by the Central Bank as an undertaking for collective investment in transferable securities pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011 Registration Number 503109
92
Embed
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC authorised by the .../media/... · 30 Jun 2016 31 Dec 2015 30 Jun 2016 31 Dec 2015 Number of shares in issue Shares In Issue B Class 11,160,466.00
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
2016For the Six Month Period Ended 30 June 2016
INTERIM REPORT AND UNAUDITED FINANCIAL STATEMENTS
Brookfield Investment Management
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
An open-ended investment company with variable capital authorised by the Central Bank as an undertaking for collective investment in transferable securities pursuant to the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 2011
Registration Number 503109
Brookfield Investment Management Inc.
Brookfield Place
250 Vesey Street, 15th Floor
New York, New York 10281-1023
1-855-777-8001
www.brookfieldim.com
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
1
TABLE OF CONTENTS
Page
Directors and Other Information 2
Statements of Financial Position 3 – 8
Statements of Comprehensive Income 9 – 11
Statements of Changes in Net Assets Attributable to Holders of Redeemable Participating Shares 12 – 14
Statements of Cash Flows 15 – 20
Notes to the Financial Statements 21 – 52
Brookfield Global Listed Infrastructure UCITS Fund
Schedule of Investments 53 – 57
Schedule of Significant Portfolio Changes 58 – 59
Brookfield Global Listed Real Estate UCITS Fund
Schedule of Investments 60 – 63
Schedule of Significant Portfolio Changes 64 – 65
Brookfield US Listed Real Estate UCITS Fund
Schedule of Investments 66 – 67
Schedule of Significant Portfolio Changes 68 – 69
Brookfield Global Listed Infrastructure Long Short UCITS Fund
Schedule of Investments 70 – 71
Schedule of Significant Portfolio Changes 72 – 73
Brookfield Real Assets Securities UCITS Fund
Schedule of Investments 74 – 88
Schedule of Significant Portfolio Changes 89 – 90
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
2
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, 4th Floor One George’s Quay Plaza George’s Quay Dublin 2 Ireland
Investment Manager/Promoter Brookfield Investment Management Inc. Brookfield Place 250 Vesey Street, 15th Floor New York, NY 10281-1023 U.S.A.
Depositary RBC Investor Services S.A. Dublin Branch 4th Floor One George’s Quay Plaza George’s Quay Dublin 2 Ireland
Company Secretary Chartered Corporate Services Taney Hall Eglinton Terrace Dundrum Dublin 14 Ireland
Administrator and Transfer Agent RBC Investor Services Ireland Limited, 4th 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
3
STATEMENTS OF FINANCIAL POSITION As at 30 June 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 30 Jun 2016 31 Dec 2015 30 Jun 2016 31 Dec 2015 Notes USD USD USD USDAssets Financial assets at fair value through profit or loss: Investment in transferable securities 8 653,619,046 561,386,050 177,196,151 192,091,292Investment in financial derivative instruments 9 & 10 - - 31,410 -Cash at bank 5 13,896,047 637,248 1,579,011 2,639,091Amount receivable on sale of securities 2 9,354,841 12,499,741 175,440 7,114,820Amount receivable on subscriptions 2 8,892,655 8,338 1,659,135 1,041,373Interest and dividends receivable 2 2,823,161 2,007,345 671,658 769,296Receivable from investment manager 3 200,896 182,035 45,369 34,231Prepaid expenses 28,826 4,835 6,515 7,001Total assets 688,815,472
576,725,592 181,364,689
203,697,104
Liabilities Financial liabilities at fair value through profit or loss: Investment in financial derivative instruments liabilities 5,566 - 267,997 -Amount payable on purchase of securities 2 11,819,949 4,417,421 391,428 280,908Amount payable on redemptions 2 2,411,332 4,884,722 76,689 11,000,000Investment management fees payable 3 547,651 485,125 135,400 152,713Administration fees payable 3 13,969 13,912 8,500 8,425Transfer agency fees payable 3 6,600 1,380 4,000 1,380Directors’ fees payable 3 14,500 13,960 5,400 5,596Depositary and depositary oversight fees payable 3 23,547 15,593 16,605 6,385Audit and tax fees payable 3 5,675 11,501 5,675 11,500Other accrued expenses and liabilities 55,408 45,280 28,621 23,761Total liabilities (excluding amounts attributable to holders of redeemable participating shares) 14,904,197 9,888,894 940,315 11,490,668 Net assets attributable to holders of redeemable participating shares 14 673,911,275 566,836,698 180,424,374 192,206,436 The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 31 December 2015 as disclosed in note 18.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
4
STATEMENTS OF FINANCIAL POSITION (continued) As at 30 June 2016
The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 31 December 2015 as disclosed in note 18. * 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 30 Jun 2016 31 Dec 2015 30 Jun 2016 31 Dec 2015 Number of shares in issue Shares In Issue B Class 11,160,466.00 10,485,518.05 125,067.21 116,404.20Net Asset Value Per Share B Class EUR 35.30 EUR 31.23 EUR 42.07 EUR 40.05 Shares In Issue E Class 4,678,331.28 4,890,828.80 3,834,726.34 3,816,426.87Net Asset Value Per Share E Class USD 29.14 USD 25.20 USD 34.73 USD 32.33 Shares In Issue F Class 5,254,002.29 5,221,853.95 20,625.00 3,096,341.38Net Asset Value Per Share F Class USD 18.88 USD 16.65 USD 21.68 USD 20.59 Shares In Issue M Class 39,820.10 62,109.39 - -Net Asset Value Per Share M Class USD 17.10 USD 14.85 - - Shares In Issue I Class* - - 1,771,343.00 -Net Asset Value Per Share I Class - - EUR 20.81 -
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
5
STATEMENTS OF FINANCIAL POSITION (continued) As at 30 June 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* 30 Jun 2016 31 Dec 2015 30 Jun 2016 31 Dec 2015 Notes USD USD USD USDAssets Financial assets at fair value through profit or loss: Investment in transferable securities 8 84,557,237 68,315,352 6,387,098 8,747,642Investment in financial derivative instruments 9 & 10 - - 28,006 74,411Cash at bank 5 2,811,171 298,661 8,832,289 5,394,570Amount receivable on sale of securities 2 93,057 4,123,990 395,526 109,519Amount receivable on subscriptions 2 876,273 264,969 - -Interest and dividends receivable 2 466,011 379,137 7,614 4,955Receivable from investment manager 3 - - 13,197 42,716Prepaid expenses 3,786 4,835 25,998 27,289Total assets 88,807,535 73,386,944 15,689,728 14,401,102 Liabilities Financial liabilities at fair value through profit or loss: Investment in financial derivative instruments liabilities 9 & 10 - - 174,080 329,959Amount payable on purchase of securities 2 544,647 94,133 254,322 48,241Amount payable on redemptions 2 24,469 3,148,268 - -Investment management fees payable 3 141,611 75,756 - -Administration fees payable 3 8,400 8,423 6,208 5,017Transfer agency fees payable 3 4,000 1,380 1,300 1,025Directors’ fees payable 3 1,780 1,885 370 -Depositary and depositary oversight fees payable 3 3,650 1,830 4,610 6,880Audit and tax fees payable 3 5,675 11,500 5,675 8,449Other accrued expenses and liabilities 13,323 12,005 71,668 91,133Total liabilities (excluding amounts attributable to holders of redeemable participating shares) 747,555 3,355,180 518,233 490,704 Net assets attributable to holders of redeemable participating shares 14 88,059,980 70,031,764 15,171,495 13,910,398 The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 31 December 2015 as disclosed in note 18. * Launched on 26 August 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
6
STATEMENTS OF FINANCIAL POSITION (continued) As at 30 June 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* 30 Jun 2016 31 Dec 2015 30 Jun 2016 31 Dec 2015 Number of shares in issue Shares In Issue E Class 1,092,675.14 549,648.31 750,000.00 750,000.00 Net Asset Value Per Share E Class USD 36.01 USD 32.80 USD 20.23 USD 18.55 Shares In Issue Q Class 6,231,581.25 7,161,994.60 - - Net Asset Value Per Share Q Class JPY 802.25 JPY 873.34 - - The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 31 December 2015 as disclosed in note 18. * Launched on 26 August 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
7
STATEMENTS OF FINANCIAL POSITION (continued)
As at 30 June 2016
Brookfield Brookfield Real Assets Real Assets Securities Securities UCITS Fund* UCITS Fund* Total Total 30 Jun 2016 31 Dec 2015 30 Jun 2016 31 Dec 2015 Notes USD USD USD USDAssets Financial assets at fair value through profit or loss: Investment in transferable securities 8 64,312,863
58,379,473 986,072,395 888,919,809
Investment in financial derivative instruments
9 & 10 - 27,487 59,416 101,898Cash at bank 5 6,000,964 5,013,158 33,119,482 13,982,728Amount receivable on sale of securities 2 648,389 124,129 10,667,253 23,972,199Amount receivable on subscriptions
2 - - 11,428,063 1,314,680Interest and dividends receivable 2 390,038 393,702 4,358,482 3,554,435Receivable from investment manager 3 102,983 25,124 362,445 284,106Prepaid expenses 19,136 20,974 84,261 64,934Total assets 71,474,373 63,984,047 1,046,151,797 932,194,789 Liabilities Financial liabilities at fair value through profit or loss: Investment in financial derivative instruments liabilities 9 & 10 24,626 - 472,269 329,959Amount payable on purchase of securities 2 1,035,081 757,114 14,045,427 5,597,817Amount payable on redemptions 2 - - 2,512,490 19,032,990Investment management fees payable 3 68,141 62,123 892,803 775,717Administration fees payable 3 8,719 5,714 45,796 41,491Transfer agency fees payable 3 1,120 828 17,020 5,993Directors’ fees payable 3 610 - 22,660 21,441Depositary and depositary oversight fees payable 3 20,325 1,170 68,737 31,858Audit and tax fees payable 3 5,675 8,450 28,375 51,400Other accrued expenses and liabilities 8,481 5,723 177,501 177,902Total liabilities (excluding amounts attributable to holders of redeemable participating shares) 1,172,778 841,122 18,283,078 26,066,568 Net assets attributable to holders of redeemable participating shares 14 70,301,595 63,142,925 1,027,868,719 906,128,221 The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 31 December 2015 as disclosed in note 18.
* Launched on 1 September 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
8
STATEMENTS OF FINANCIAL POSITION (continued) As at 30 June 2016
Brookfield Brookfield Real Assets Real Assets Securities Securities UCITS Fund* UCITS Fund* 30 Jun 2016 31 Dec 2015 Number of shares in issue Shares In Issue E Class 3,287,217.83 3,287,217.83 Net Asset Value Per Share E Class USD 21.39 USD 19.21 The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 31 December 2015 as disclosed in note 18. * Launched on 1 September 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
9
STATEMENTS OF COMPREHENSIVE INCOME
For the financial period ended 30 June 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 30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 Notes USD USD USD USDIncome Dividend income 2 13,915,304 11,698,923 3,024,016 3,096,836Bank interest 2 14,474 11 1,312 -Interest income 2 - - - -Net realised and unrealised gain/(loss) on financial assets and liabilities at fair value through profit or loss 6 82,521,771 (44,278,710) 3,565,161 (6,043,687)Other income - - 1,067 -Total income/(loss) 96,451,549 (32,579,776) 6,591,556 (2,946,851) Expenses Investment management fees 3 2,782,579 2,936,524 618,572 861,220Administration fees 3 40,966 42,235 25,424 25,212Directors’ fees 3 30,133 11,302 8,025 11,302Depositary and depositary oversight fees 3 78,408 89,549 52,642 70,387Audit and tax fees 3 5,676 2,795 5,643 2,795Transfer agency fees 3 24,066 18,636 16,757 9,960Transaction costs 2 674,501 675,669 192,547 206,006Other expenses 169,318 134,566 34,046 77,068Total expenses 3,805,647 3,911,276 953,656 1,263,950 Investment manager subsidy 3 (200,896) (142,048) (45,369) (89,268)Net Expenses 3,604,751 3,769,228 908,287 1,174,682 Profit/(loss) before taxation 92,846,798 (36,349,004) 5,683,269 (4,121,533) Taxation Withholding taxes 2 2,178,184 2,649,080 113,678 678,656 Increase/(decrease) in net assets attributable to h olders
redeemable
of participating shares from operations after tax 90,668,614 (38,998,084) 5,569,591 (4,800,189)
Dividends to holders of redeemable participating shares 4 1,863,306 799,588 9,124 936,868 Increase/(decrease) in net assets attributable to h olders
redeemable
of participating shares from operations 88,805,308 (39,797,672) 5,560,467 (5,737,057)
The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
10
STATEMENTS OF COMPREHENSIVE INCOME (continued)
For the financial period ended 30 June 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* 30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 Notes USD USD USD USD Income Dividend income 2 1,800,350 1,120,141 195,570 - Bank interest 2 687 - 5,342 - Interest income 2 - - - - Net realised and unrealised gain/(loss) on financial assets and liabilities at fair value through profit or loss 6 6,189,165 (10,167,063) 1,418,737 - Other income 70 - 19,130 - Total income/(loss) 7,990,272 (9,046,922) 1,638,779 - Expenses Investment management fees 3 301,852 337,673 107,083 - Administration fees 3 25,062 24,993 19,816 - Directors’ fees 3 3,544 11,302 1,155 - Depositary and depositary oversight fees 3 12,713 14,129 11,315 - Audit and tax fees 3 5,639 2,795 7,587 - Transfer agency fees 3 13,591 10,434 4,134 - Transaction costs 2 89,008 83,115 28,560 - Other expenses 22,109 90,588 196,491 - Total expenses 473,518 575,029 376,141 - - Investment manager subsidy 3 (6,566) (70,844) (46,561) - Net Expenses 466,952 504,185 329,580 - Profit/(loss) before taxation 7,523,320 (9,551,107) 1,309,199 - Taxation Withholding taxes 2 148,802 432,479 48,102 - - Increase/(decrease) in net assets attributable to h olders of participating shares from operations after tax 7,374,518 (9,983,586) 1,261,097 - Dividends to holders of redeemable participating shares 4 985,510 858,664 - - Increase/(decrease) in net assets attributable to h olders of participating shares from operations 6,389,008 (10,842,250) 1,261,097 -
The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18. * Launched on 26 August 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
11
STATEMENTS OF COMPREHENSIVE INCOME (continued)
For the financial period ended 30 June 2016
Brookfield Brookfield Real Assets Real Assets Securities Securities UCITS Fund* UCITS Fund* Total Total 30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 Notes USD USD USD USDIncome Dividend income 2 1,050,071 - 19,985,311 15,915,900Bank interest 2 2,829 - 24,644 11Interest income 2 461,610 - 461,610 -Net realised and unrealised gain/(loss) on financial assets and liabilities at fair value through profit or loss 6 6,255,373 - 99,950,207 (60,489,460)Other income - - 20,267 -Total income/(loss) 7,769,883
- 120,442,039 (44,573,549)
Expenses Investment management fees 3 272,255 - 4,082,341 4,135,417Administration fees 3 20,309 - 131,577 92,440Directors’ fees 3 3,610 - 46,467 33,906Depositary and depositary oversight fees 3 77,384 - 232,462 174,065Audit and tax fees 3 7,639 - 32,184 8,385Transfer agency fees 3 3,652 - 62,200 39,030Transaction costs 2 54,613 - 1,039,229 964,790Other expenses 40,568 - 462,532 302,222Total expenses 480,030 - 6,088,992 5,750,255 - Investment manager subsidy 3 (103,003) - (402,395) (302,160)Net Expenses 377,027 - 5,686,597 5,448,095 Profit/(loss) before taxation 7,392,856 - 114,755,442 (50,021,644) Taxation Withholding taxes 2 234,186 - 2,722,952 3,760,215 - Increase/(decrease) in net assets attributable to h olders of participating shares from operations after tax 7,158,670 - 112,032,490 (53,781,859) Dividends to holders of redeemable participating shares 4 - - 2,857,940 2,595,120 Increase/(decrease) in net assets attributable to h olders of participating shares from operations 7,158,670 - 109,174,550 (56,376,979)
The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18. * Launched on 1 September 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
12
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES
For the financial period ended 30 June 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 30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 USD USD USD USDNet assets attributable to holders of redeemable participating shares at the beginning of the financ ial period 566,836,698 543,435,745 192,206,436 186,618,019 Profit/(loss) attributable to holders of redeemable participating shares from operations 88,805,308 (39,797,672) 5,560,467 (5,737,057) Capital Transactions Issue of redeemable participating shares during the financial period EUR B class 42,634,779 75,317,900 873,795 2,484,952USD E class 202,644 117,851,867 38,367,076 32,258,539USD F class 7,894,491 27,063,311 - 1,297,093USD M class 78,543 - - -EUR I class* - - 40,326,297 - Redemption of redeemable participating shares during the financial period EUR B class (18,042,045) (33,868,661) (490,412) (1,274,741)USD E class (6,027,955) (62,408,683) (37,777,720) (10,834,462)USD F class (8,069,043) (1,164,110) (57,861,336) -USD M class (402,145) (46,660) - -EUR I class* - - (780,229) - Net assets attributable to holders of redeemable participating shares at the end of the financial pe riod 673,911,275 626,383,037 180,424,374 204,812,343 Redeemable participating shares in issue at beginning of the financial period 20,660,310 15,652,078 7,029,172 7,066,684Shares issued during the financial period EUR B class 1,201,181 1,812,754 20,271 53,518USD E class 7,953 3,882,954 1,215,134 940,612USD F class 492,350 1,298,986 - 59,118USD M class 5,523 - - -EUR I class* - - 1,805,453 -Shares redeemed during the financial period EUR B class (526,232) (826,718) (11,608) (27,000)USD E class (220,451) (2,012,014) (1,196,834) (315,180)USD F class (460,201) (55,785) (3,075,716) -USD M class (27,813) (2,569) - -EUR I class* - - (34,110) - Redeemable participating shares in issue at the end of the financial period 21,132,620 19,749,686 5,751,762 7,777,752
The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18. * Launched on 25 May 2016
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
13
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES (contin ued)
For the financial period ended 30 June 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 * 30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 USD USD USD USDNet assets attributable to holders of redeemable participating shares at the beginning of the financ ial period 70,031,764 61,894,728 13,910,398 - Profit/(loss) attributable to holders of redeemable participating shares from operations 6,389,008 (10,842,250) 1,261,097 - Capital Transactions Issue of redeemable participating shares during the financial period USD E class 40,159,631 18,053,671 - -JPY Q class 1,599,761 64,193,133 - -Redemption of redeemable participating shares during the financial period USD E class (21,720,313) (50,159,520) - -JPY Q class (8,399,871) (740,774) - - Net assets attributable to holders of redeemable participating shares at the end of the financial pe riod 88,059,980 82,398,988 15,171,495 - Redeemable participating shares in issue at beginning of the financial period 7,711,643 1,762,347 750,000 -Shares issued during the financial period USD E class 1,199,217 504,815 - -JPY Q class 228,623 7,665,119 - -Shares redeemed during the financial period USD E class (656,191) (1,411,301) - -JPY Q class (1,159,036) (98,614) - - Redeemable participating shares in issue at the end of the financial period 7,324,256 8,422,366 750,000 - The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18. * Launched on 26 August 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
14
STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE PARTICIPATING SHARES (contin ued)
For the financial period ended 30 June 2016
The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18. * Launched on 1 September 2015. ** Launched on 25 May 2016
Brookfield Brookfield Real Assets Real Assets Securities Securities UCITS Fund* UCITS Fund* Total Total 30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 USD USD USD USDNet assets attributable to holders of redeemable participating shares at the beginning of the financ ial period 63,142,925 - 906,128,221 791,948,492 Profit/(loss) attributable to holders of redeemable participating shares from operations 7,158,670 - 109,174,550 (56,376,979) Capital Transactions Issue of redeemable participating shares during the financial period EUR B class - - 43,508,574 77,802,852USD E class - - 78,729,351 168,164,077USD F class - - 7,894,491 28,360,404USD M class - - 78,543 -JPY Q class - - 1,599,761 64,193,133EUR I class** - - 40,326,297 -Redemption of redeemable participating shares during the financial period EUR B class - - (18,532,457) (35,143,402)USD E class - - (65,525,988) (123,402,665)USD F class - - (65,930,379) (1,164,110)USD M class - - (402,145) (46,660)JPY Q class - - (8,399,871) (740,774)EUR I class** - - (780,229) - Net assets attributable to holders of redeemable participating shares at the end of the financial pe riod 70,301,595 - 1,027,868,719 913,594,368 - Redeemable participating shares in issue at beginning of the financial period 3,287,218 - Shares issued during the financial period USD E class - - Shares redeemed during the financial period USD E class - - Redeemable participating shares in issue at the end of the financial period 3,287,218 -
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
15
STATEMENTS OF CASH FLOWS For the financial period ended 30 June 2016
Brookfield Brookfield Brookfield Brookfield Global Listed Global Listed Global Listed Global Li sted Infrastructure Infrastructure Real Estate Real Esta te UCITS Fund UCITS Fund UCITS Fund UCITS Fund
30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 USD USD USD USD
Cash flows from operating activities Increase/(decrease) in net assets attributable to h olders of redeemable participating shares from operations 90, 668,614 (38,998,084) 5,569,591 (4,800,189) 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 (14,474) (11) (1,312) - Dividend income (13,915,304) (11,698,923) (3,024,016) (3,096,836) Tax expense 2,178,184 2,649,080 113,678 678,656 Operating profit/(loss) before working capital chan ges 78,917,020 (48,047,938) 2,657,941 (7,218,369) Changes in operating assets and liabilities Net (increase)/decrease in investments in securities (92,227,430) (77,008,340) 15,131,728 (23,124,477) Decrease/(increase) in receivable from sale of securities 3,144,900 (9,718,872) 6,939,380 1,165,861 Increase in receivable from investment manager (18,861) (88,800) (11,138) (50,720) (Increase)/decrease in prepaid expenses (23,991) 1,650 486 2,842 Increase/(decrease) in amount payable on purchase of securities 7,402,528 10,844,925 110,520 (621,801) Increase/(decrease) in investment manager fees payable 62,526 35,352 (17,313) 4,430 Increase/(decrease) in administration fees payable 57 1,872 75 (43) Increase/(decrease) in transfer agency fees payable 5,220 (1,568) 2,620 (1,172) Increase/(decrease) in directors’ fees payable 540 (85) (196) (85) Increase/(decrease) in depositary and depositary oversight fees payable 7,954 (10,803) 10,220 (4,259) Decrease in audit and tax fees payable (5,826) (7,887) (5,825) (7,887) Increase other accrued expenses and liabilities 10,128 53,403 4,860 23,036 Cash (used in)/provided by operating activities (2, 725,235) (123,947,091) 24,823,358 (29,832,644) The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
16
STATEMENTS OF CASH FLOWS (continued) For the financial period ended 30 June 2016
Brookfield Brookfield Brookfield Brookfield Global Listed Global Listed Global Listed Global Li sted Infrastructure Infrastructure Real Estate Real Esta te UCITS Fund UCITS Fund UCITS Fund UCITS Fund
30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 USD USD USD USD Cash (used in)/provided by operating activities (co ntinued) Interest received 13,275 11 880 - Dividend received 13,100,687 9,353,129 3,122,086 3,430,343 Taxation (2,178,184) (2,649,080) (113,678) (678,656) Net cash provided by/(used in) operating activities 8,210,543 (117,243,031) 27,832,646 (27,080,957) Cash flows from financing activities Proceeds from issue of redeemable participating shares 41,926,140 210,356,315 78,949,406 44,454,178 Payment on redemptions of redeemable participating shares (35,014,578) (96,339,381) (107,833,008) (12,109,203) Distribution to holders of redeemable participating shares (1,863,306) (4,972,018) (9,124) (11,003,786) Net cash provided by/(used in) financing activities 5,048,256 109,044,916 (28,892,726) 21,341,189 Net increase/(decrease) in cash 13,258,799 (8,198,115) (1,060,080) (5,739,768) Cash at the start of the financial period 637,248 14,963,959 2,639,091 8,970,559 Cash at the end of the financial period 13,896,047 6,765,844 1,579,011 3,230,791 The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
17
STATEMENTS OF CASH FLOWS (continued) For the financial period ended 30 June 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*
30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 USD USD USD USD
Cash flows from operating activities Increase/(decrease) in net assets attributable to h olders of
redeemable participating shares from operations 7,3 74,518 (9,983,586) 1,261,097 - 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 (687) - (5,342) - Dividend income (1,800,350) (1,120,141) (195,570) - Tax expense 148,802 432,479 48,102 - Operating profit/(loss) before working capital chan ges 5,722,283 (10,671,248) 1,108,287 - Changes in operating assets and liabilities Net (increase)/decrease in investments in securities (16,241,885) (22,176,110) 2,251,070 - Decrease/(increase) in receivable from sale of securities 4,030,933 217,641 (286,007) - (Increase)/decrease in receivable from investment manager - (41,976) 29,519 - Decrease in prepaid expenses 1,049 1,848 1,291 - Increase/(decrease) in amount payable on purchase of securities 450,514 (193,208) 206,081 - Increase/(decrease) in investment manager fees payable 65,855 (9,553) - - (Decrease)/increase in administration fees payable (23) (3) 1,191 - Increase/(decrease) in transfer agency fees payable 2,620 (1,532) 275 - (Decrease)/increase in directors’ fees payable (105) (85) 370 - Increase/(decrease) in depositary and depositary oversight fees payable 1,820 (377) (2,270) - Decrease in audit and tax fees payable (5,825) (7,887) (2,774) - Increase/(decrease) in other accrued expenses and liabilities 1,318 23,637 (19,465) - Cash (used in)/provided by operating activities (5, 971,446) (32,858,853) 3,287,568 - The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18. * Launched on 26 August 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
18
STATEMENTS OF CASH FLOWS (continued) For the financial period ended 30 June 2016
Brookfield Brookfield Brookfield Brookfield US Listed US Listed Global Listed Global Listed Real Estate Real Estate Infrastructure Long Infrast ructure Long UCITS Fund UCITS Fund Short UCITS Fund* Short UCITS Fund*
30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 USD USD USD USD Cash (used in)/provided by operating activities (co ntinued)
Interest received 563 - 5,103 - Dividend received 1,713,601 1,324,641 193,150 - Taxation (148,802) (432,479) (48,102) - Net cash (used in)/provided by operating activities (4,406,084) (31,966,691) 3,437,719 - Cash flows from financing activities Proceeds from issue of redeemable participating shares 41,148,087 81,792,528 - - Payment on redemptions of redeemable participating shares (33,243,983) (50,736,941) - - Distribution to holders of redeemable participating shares (985,510) (858,664) - - Net cash provided by financing activities 6,918,594 30,196,923 - - Net increase/(decrease) in cash 2,512,510 (1,769,768) 3,437,719 - Cash at the start of the financial period 298,661 2,581,676 5,394,570 - Cash at the end of the financial period 2,811,171 811,908 8,832,289 - The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18. * Launched on 26 August 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
19
STATEMENTS OF CASH FLOWS (continued) For the financial period ended 30 June 2016
The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18. * Launched on 1 September 2015.
Brookfield Brookfield Real Assets Real Assets Securities Securities UCITS Fund* UCITS Fund* Total Total
30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 USD USD USD USD Cash flows from operating activities Increase/(decrease) in net assets attributable to h olders of redeemable participating shares from operations 7,158,670
- 112,032,490
(53,781,859)
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 (464,439) - (486,254) (11) Dividend income (1,050,071) - (19,985,311) (15,915,900) Tax expense 234,186 - 2,722,952 3,760,215 Operating profit/(loss) before working capital chan ges 5,878,346 - 94,283,877 (65,937,555) Changes in operating assets and liabilities Net increase in investments in securities (5,881,277) - (96,967,794) (122,308,927) (Increase)/decrease in receivable from sale of securities (524,260) - 13,304,946 (8,335,370) Increase in receivable from investment manager (77,859) - (78,339) (181,496) (Increase)/decrease in prepaid expenses 1,838 - (19,327) 6,340 Increase in amount payable on purchase of securities 277,967 - 8,447,610 10,029,916 Increase in investment manager fees payable 6,018 - 117,086 30,229 Increase in administration fees payable 3,005 - 4,305 1,826 Increase/(decrease) in transfer agency fees payable 292 - 11,027 (4,272) Increase/(decrease) in directors’ fees payable 610 - 1,219 (255) Increase/(decrease) in depositary and depositary oversight fees payable 19,155 - 36,879 (15,439) Decrease in audit and tax fees payable (2,775) - (23,025) (23,661) Increase/(decrease) in other accrued expenses and liabilities 2,758 - (401) 100,076 Cash (used in)/provided by operating activities (29 6,182) - 19,118,063 (186,638,588)
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
20
STATEMENTS OF CASH FLOWS (continued) For the financial period ended 30 June 2016
Brookfield Brookfield Real Assets Real Assets Securities Securities UCITS Fund* UCITS Fund* Total Total
30 Jun 2016 30 Jun 2015 30 Jun 2016 30 Jun 2015 USD USD USD USDCash (used in)/provided by operating activities (co ntinued) Interest received 464,024 - 483,845 11Dividend received 1,054,150 - 19,183,674 14,108,113Taxation (234,186) - (2,722,952) (3,760,215) Net cash provided by/(used in) operating activities 987,806 - 36,062,630 (176,290,679) Cash flows from financing activities Proceeds from issue of redeemable participating shares - - 162,023,633 336,603,021Payment on redemptions of redeemable participating shares - - (176,091,569) (159,185,525)Distribution to holders of redeemable participating shares - - (2,857,940) (16,834,468) Net cash (used in)/provided by financing activities - - (16,925,876) 160,583,028 Net increase/(decrease) in cash 987,806 - 19,136,754 (15,707,651) Cash at the start of the financial period 5,013,158 - 13,982,728 26,516,194 Cash at the end of the financial period 6,000,964 - 33,119,482 10,808,543 The accompanying notes form an integral part of these financial statements. The comparative amounts relate to the financial period from 1 January 2015 to 30 June 2015 as disclosed in note 18. * Launched on 1 September 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
21
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 30 June 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. 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 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 INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
22
1. The Company (continued)
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.
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 thro ugh 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.
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.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
23
2. Significant Accounting Policies (continued)
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 (e.g. bonds, debt securities, equities and similar assets) were recorded based on quoted market prices as at 30 June 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.
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 Investmen ts Realised gains and losses on disposal of investments during the financial period and the change in unrealised gains and losses on valuation of investments held at financial period 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 30 June 2016 this was USD.
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.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
24
2. Significant Accounting Policies (continued)
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.
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 period please refer to note 4.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
25
2. Significant Accounting Policies (continued)
New Standards, amendments and interpretations issue d 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 period amounted to USD 4,082,341 (30 June 2015: USD 4,135,417). Fees of USD 892,803 (31 December 2015: USD 775,717) were outstanding at financial period 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.brookfieldim.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%
* 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.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
26
3. Fees (continued)
Investment Management Fee(continued)
The Investment Manager subsidy for the financial period amounted to USD 402,395 (30 June 2015: USD 302,160). Fees of USD 362,445 (31 December 2015: USD 284,106) were receivable from the Investment Manager at financial period 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 period amounted to USD 131,577 (30 June 2015: USD 92,440) and USD 62,200 (30 June 2015: USD 39,030) respectively. Fees of USD 45,796 (31 December 2015: USD 41,491) and USD 17,020 (31 December 2015: USD 5,993) respectively were outstanding at financial period 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 period amounted to USD 232,462 (30 June 2015: USD 174,065). The Depositary and Depositary Oversight fees outstanding at financial period end were USD 68,737 (31 December 2015: USD 31,858).
Directors’ fees The Directors’ fees charged during the financial period were USD 46,467 (30 June 2015: USD 33,906) of which USD 22,660 (31 December 2015: USD 21,441) was payable at financial period end.
Audit and tax fees The below table discloses audit remuneration fees for the financial period.
30 June 30 June 2016 2015 EUR EUR Audit (ex-VAT and applicable out-of-pocket expenses) 32,184 8,385 Other assurance - - Tax advisory - - Other non-audit - - 32,184 8,385
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
27
3. Fees (continued)
Audit and tax fees (continued)
Audit fees of EUR 28,375 (31 December 2015: EUR 39,750) were payable at financial period 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 period as well as gains and losses realised during the period 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 2015.
The Administrator will keep a record to ensure that the appropriate amount of the performance fee is borne by each Shareholder.
The performance fee will be verified by the Depositary.
There were no performance fees paid during the financial period ended 30 June 2016 (30 June 2015: nil).
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
28
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 period 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
30 Jun e 2016 31 December 2015 Ex-date Ex-date Ex-date Rate
21 March 2016 USD 0.166300 19 June 2015 USD 0.204200 20 June 2016 USD 0.182500 21 September 2015 USD 0.179600
21 December 2015 USD 0.161400
Brookfield Global Listed Real Estate UCITS Fund - Cla ss F
30 Jun e 2016 31 December 2015 Ex-date Ex-date Ex-date Rate
21 March 2016 USD 0.204300 19 June 2015 USD 0.217300 20 June 2016 USD 0.213300 21 September 2015 USD 0.203000
21 December 2015 USD 0.203500 Brookfield US Listed Real Estate UCITS Fund - Class Q
30 Jun e 2016 31 December 2015 Ex-date Ex-date Rate Rate
11 January 2016 USD 0.024400 9 February 2015 USD 0.028400 9 February 2016 USD 0.022000 9 March 2015 USD 0.027600
9 March 2016 USD 0.023500 9 April 2015 USD 0.027800 8 April 2016 USD 0.024400 8 May 2015 USD 0.026100 9 May 2016 USD 0.025100 9 June 2015 USD 0.025400 9 June 2016 USD 0.024800 9 July 2015 USD 0.024700
7 August 2015 USD 0.025300 9 September 2015 USD 0.022700 9 October 2015 USD 0.024300 9 November 2015 USD 0.024900 9 December 2015 USD 0.023500
Dividends of USD 1,863,306 (31 December 2015: USD 2,456,666) on the Brookfield Global Listed Infrastructure UCITS Fund – Class F and USD 9,124 (31 December 2015: USD 2,523,978) on the Brookfield Global Listed Real Estate UCITS Fund – Class F were paid for the financial period ended 30 June 2016.
Dividends of USD 985,510 (31 December 2015: 1,934,849) on the Brookfield US Listed Real Estate UCITS Fund – Class Q were paid for the financial period ended 30 June 2016. There were no dividends payable as at 30 June 2016 (31 December 2015:Nil).
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
29
5. Cash
Cash balances were held with RBC Investor Services Bank S.A. Cash balances held as collateral were held with JP Morgan.
As at 30 June 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
30 June 2016 30 June 2016 30 June 2016 USD USD USD Cash 13,896,047 1,579,011 2,811,171 Total Cash at bank 13,896,047 1,579,011 2,811,171
Brookfield Global Listed Infrastructure
Long Short UCITS Fund
Brookfield Real Assets Securities UCITS Fund
30 June 2016 30 June 2016 USD USD Cash 2,832,289 5,740,964 Cash balances held as collateral Credit Agricole 4,800,000 - JP Morgan 1,200,000 260,000 Total Cash at bank 8,832,289 6,000,964
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 six month financial period ended 30 June 2016 (continued)
30
6. Net gains/(losses) on financial instruments at f air value through profit or loss
Realised Unrealised For the financial period ended 30 June 2016 gains/( losses) gains/(losses) Total USD USD USD Brookfield Global Listed Infrastructure UCITS Fund Common stocks (22,740,275) 105,530,894 82,790,619 Forward currency contracts (9,489) (5,566) (15,055) Foreign exchange - (253,793) (253,793) (22,749,764) 105,271,535 82,521,771
Brookfield Global Listed Real Estate UCITS Fund Common stocks (11,513,101) 15,427,630 3,914,529 Corporate bonds 8 - 8 Forward currency contracts (114,169) (236,587) (350,756) Foreign exchange - 1,380 1,380 (11,627,262) 15,192,423 3,565,161 Brookfield US Listed Real Estate UCITS Fund Common stocks (2,714,456) 8,919,063 6,204,607 Corporate bonds 2 - 2 Foreign exchange - (15,444) (15,444) (2,714,454) 8,903,619 6,189,165
Brookfield Global Listed Infrastructure Long Short U CITS Fund* Common stocks 371,936 1,226,084 1,598,020 Swaps (287,091) 109,498 (177,593) Forward currency contracts (1,005) (24) (1,029) Foreign exchange - (661) (661) 83,840 1,334,897 1,418,737
Realised Unrealised For the financial period ended 30 June 2015 gains/( losses) gains/(losses) Total USD USD USD Brookfield Global Listed Infrastructure UCITS Fund Common stocks 608,034 (44,713,800) (44,105,766) Forward currency contracts 71,369 - 71,369 Foreign exchange - (244,313) (244,313) 679,403 (44,958,113) (44,278,710) Brookfield Global Listed Real Estate UCITS Fund Common stocks 8,228,850 (14,236,058) (6,007,208) Forward currency contracts 22,879 - 22,879 Foreign exchange - (59,358) (59,358) 8,251,729 (14,295,416) (6,043,687)
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
31
6. Net gains/(losses) on financial instruments at f air value through profit or loss (continued)
Brookfield US Listed Real Estate UCITS Fund Common stocks 2,880,424 (12,877,076) (9,996,652) Foreign exchange - (170,411) (170,411) 2,880,424 (13,047,487) (10,167,063)
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 Investment Manager, earned a fee of USD 4,082,341 (30 June 2015: USD 4,135,417) of which USD 892,803 (31 December 2015: USD 775,717) was payable at financial period end.
The Investment Manager Subsidy (capped fees) for the financial period amounted to USD 402,395 (30 June 2015: USD 302,160). Fees of USD 362,445 (31 December 2015: USD 284,106) were receivable from the Investment Manager at financial period end. Jonathan Tyras is the General Counsel, Chief Financial Officer and Managing Director of the Investment Manager. 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 30 June 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
30 June 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
Transactions with Connected Persons In accordance with the requirements of UCITS Regulations, the Board is satisfied that there are arrangements (evidenced by written procedures) in place to ensure that any transactions carried out with the Company by its promoter, investment manager, investment adviser, depositary and/or associated or group companies of these ("Connected Persons") are carried out as if negotiated at arm's length and are in the best interests of the shareholders. All transactions with Connected Persons entered into during the financial period were carried out as if negotiated at arm's length and in the best interests of the shareholders.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
32
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 30 June 2016 and 31 December 2015: Brookfield Global Listed Infrastructure UCITS Fund 30 June 2016 Total (Level 1) (Level 2) (Level 3) USD USD USD USD Financial assets at fair value through profit or lo ss Investments in transferable securities, at fair value - Common stocks 653,619,046 653,619,046 - - 653,619,046 653,619,046 - - Financial liabilities at fair value through profit or loss Investments in financial derivative instruments - Forward currency contracts (5,566) - (5,566) - (5,566) - (5,566) -
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
33
8. Risk Associated with Financial Instruments (cont inued)
Brookfield Global Listed Real Estate UCITS Fund 30 June 2016 Total (Level 1) (Level 2) (Level 3) USD USD USD USD Financial assets at fair value through profit or lo ss Investments in transferable securities, at fair value - Common stocks 177,196,151 177,196,151 - - Investments in financial derivative instruments - Forward Exchange Contracts 31,410 - 31,410 - 177,227,561 177,196,151 31,410 - Financial liabilities at fair value through profit or loss Investments in financial derivative instruments - Forward currency contracts (267,997) - (267,997) - (267,997) - (267,997) - Brookfield US Listed Real Estate UCITS Fund 30 June 2016 Total (Level 1) (Level 2) (Level 3) USD USD USD USD Financial assets at fair value through profit or lo ss Investments in transferable securities, at fair value - Common stocks 84,557,237 84,557,237 - - 84,557,237 84,557,237 - -
Brookfield Global Listed Infrastructure Long Short U CITS Fund* 30 June 2016 Total (Level 1) (Level 2) (Level 3) USD USD USD USD Financial assets at fair value through profit or lo ss Investments in transferable securities, at fair value - Common stocks 6,387,098 6,387,098 - -
Investments in financial derivative instruments - Swap 28,006 - 28,006 - 6,415,104 6,387,098 28,006 - Financial liabilities at fair value through profit or loss Investments in financial derivative instruments - Swaps (174,080) - (174,080) -
(174,080) - (174,080) - Brookfield Real Assets Securities UCITS Fund** Total (Level 1) (Level 2) (Level 3) 30 June 2016 USD USD USD USD Financial assets at fair value through profit or lo ss Investments in transferable securities, at fair value - Common stocks 52,695,732 52,695,732 - - - Corporate bonds 10,949,620 10,949,620 - - - Term loans 667,511 - 667,511 - 64,312,863 63,645,352 667,511 - Financial liabilities at fair value through profit or loss Investments in financial derivative instruments - Forward currency contracts (261) - (261) - - Swaps (24,365) - (24,365) - (24,626) - (24,626) -
* Launched on 26 August 2015. ** Launched on 1 September 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
34
8. Risk Associated with Financial Instruments (cont inued)
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 lo ss 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 lo ss 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 lo ss 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 U CITS Fund* 31 December 2015 Total (Level 1) (Level 2) (Level 3) USD USD USD USD Financial assets at fair value through profit or lo ss 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 - - Swaps 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) - - Swaps (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 lo ss 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 - Swaps 27,487 - 27,487 - 58,406,960 57,788,938 618,022 -
* Launched on 26 August 2015. ** Launched on 1 September 2015.
The sub-funds did not invest in any Level 3 securities during the financial period and there were no transfers in or out of Level 3.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
35
8. Risk Associated with Financial Instruments (cont inued)
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 swaps) 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 six month financial period ended 30 June 2016 (continued)
36
8. Risk Associated with Financial Instruments (cont inued)
Market Price Risk (continued) As at 30 June 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. 30 June 2016 USD Brookfield Global Listed Infrastructure UCITS Fund 32,680,674 Brookfield Global Listed Real Estate UCITS Fund 8,847,978 Brookfield US Listed Real Estate UCITS Fund 4,227,862 Brookfield Global Listed Infrastructure Long Short Fund 312,051 Brookfield Real Assets Securities UCITS Fund 3,214,412
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 rates risk.
The table below summarises the maturity periods for interest-bearing securities held by Brookfield Real Assets Securities UCITS Fund* as at 30 June 2016. Non- Up to 1 1 - 5 Over interest year years 5 years bearing Total USD USD USD USD USD Corporate bonds - 1,817,281 9,132,339 - 10,949,620 Term loans - 667,511 - - 667,511 Common stocks - - - 52,695,732 52,695,732 Financial Derivative Instruments - - - - - Other assets - - - 7,161,510 7,161,510 Total assets - 2,484,792 9,132,339 59,857,242 71,474,373 Financial Derivative Instruments - - - 24,626 24,626 Other liabilities - - - 1,148,152 1,148,152 Total liabilities - - - 1,172,778 1,172,778 Total Net Assets 70,301,595 * Launched on 1 September 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
37
8. Risk Associated with Financial Instruments (cont inued)
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 * Launched on 1 September 2015.
As at 30 June 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 116,171 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 30 June 2016 and 31 December 2015.
Brookfield Global Listed Infrastructure UCITS Fund
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
38
8. Risk Associated with Financial Instruments (cont inued)
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.
31 December 2015 Net Other Net Foreign Total Monetary Net Currency Net Investments Assets/(Liabilities) Assets/(Liabiliti es) 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.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
39
8. Risk Associated with Financial Instruments (cont inued)
Foreign Currency Risk (continued) Brookfield Global Listed Real Estate UCITS Fund 30 June 2016 Net Other Net Foreign Total Monetary Net Currency Net Investments Assets/(Liabilities) Assets/(Liabiliti es) Derivatives Exposure USD USD USD USD USD AUD 12,758,460 - 111,570 - 12,870,030 EUR 22,162,161 - 930,503 40,303,774 63,396,438 GBP 12,093,768 - 27,609 - 12,121,377 HKD 9,433,324 - - - 9,433,324 JPY 15,474,899 - 23,953 - 15,498,852 NZD 1,309,083 - - - 1,309,083 SGD 3,089,380 - - - 3,089,380
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.
31 December 2015 Net Other Net Foreign Total Monetary Net Currency Net Investments Assets/(Liabilities) Assets/(Liabiliti es) 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 six month financial period ended 30 June 2016 (continued)
40
8. Risk Associated with Financial Instruments (cont inued)
Foreign Currency Risk (continued)
Brookfield Global Listed Real Estate UCITS Fund (co ntinued)
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.
Brookfield US Listed Real Estate UCITS Fund 30 June 2016 Net Other Net Foreign Total Monetary Net Currency Net Investments Assets/(Liabilities) Assets/(Liabiliti es) Derivatives Exposure USD USD USD USD USD JPY - - 2,929 - 2,929 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 146
31 December 2015 Net Other Net Foreign Total Monetary Net Currency Net Investments Assets/(Liabilities) Assets/(Liabiliti es) 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 six month financial period ended 30 June 2016 (continued)
41
8. Risk Associated with Financial Instruments (cont inued)
Foreign Currency Risk (continued)
Brookfield Global Listed Infrastructure Long Short UCITS Fund 30 June 2016 Net Other Net Foreign Total Monetary Net Currency Net Investments Assets/(Liabilities) Assets/(Liabilit ies) Derivatives Exposure USD USD USD USD USD CAD 497,996 - 10,170 (27,034) 481,132 CHF 353,521 - - - 353,521 EUR 623,456 - (10,612) (2,827) 610,017 HKD - 16 - - 16 MXN 675,249 - - - 675,249 TRY - - 21,911 16,760 38,671 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 CAD 24,057 CHF 17,676 EUR 30,501 HKD 1 MXN 33,762 TRY 1,934
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
42
8. Risk Associated with Financial Instruments (cont inued)
Foreign Currency Risk (continued)
Brookfield Global Listed Infrastructure Long Short UCITS Fund* (continued)
31 December 2015 Net Other Net Foreign Total Monetary Net Currency Net Investments Assets/(Liabilities) Assets/(Liabiliti es) 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 * Launched on 1 September 2015.
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.
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.
31 December 2015 Net Other Net Foreign Total Monetary Net Currency Net Investments Assets/(Liabilities) Assets/(Liabiliti es) 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 * Launched on 1 September 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
44
8. Risk Associated with Financial Instruments (cont inued)
Foreign Currency Risk (continued)
Brookfield Real Assets Securities UCITS Fund* (cont inued)
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
* Launched on 1 September 2015. 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 30 June 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 30 June 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.
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.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
45
8. Risk Associated with Financial Instruments (cont inued)
Operational Risk (continued)
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. 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 30 June 2016 AA 1% BBB 1% BB 8% B 6% CCC 0% CC 1% Other 1%
Brookfield Real Assets Securities UCITS Fund*
Rating 31 December 2015 AA - BBB 2% BB 11% B 11% CCC 0% CC 2% Other 11% * Launched on 1 September 2015. The counterparty for the swaps held as at 30 June 2016 is JP Morgan. Details of the swaps 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 30 June 2016 RBC Investor Services Bank S.A., Dublin Branch has a credit rating of AA- with Standard & Poor’s (as at 31 December 2015: AA- for Standard & Poor’s). The Investment Manager regularly reviews concentrations of credit risk.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
46
8. Risk Associated with Financial Instruments (cont inued)
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, for the purpose of efficient portfolio management specifically for currency hedging, enter into a variety of derivative instruments including, but not limited to, swaps, 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 swaps 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;
• 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 Infrastructure Long Short UCITS Fund, forward currency contracts and swaps were utilised as at the financial period 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 swaps held as at the financial period end. The counterparty in relation to the forward currency contracts is RBC IS Bank Luxembourg and Northern Trust Company. The counterparty in relation to the swaps is JP Morgan. Cash collateral details are shown in note 5.
There were no netting agreements in place for financial period ended 30 June 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 six month financial period ended 30 June 2016 (continued)
47
9. Forward Currency Contracts
Brookfield Global Listed Infrastructure UCITS Fund 30 June 2016 Settlement/ Counterparty Bought Amount Sold Amount Un realised Maturity Date Gain/(Loss) USD
5 July 2016 Northern Trust Company USD 1,212,976 CAD (1,582,495) (5,566)
(5,566) Brookfield Global Listed Real Estate UCITS Fund 30 June 2016 Settlement/ Counterparty Bought Amount Sold Amount Un realised Maturity Date Gain/(Loss) USD
1 July 2016 RBC IS Bank Luxembourg EUR 34,569,440 USD (38,570,058) (165,138)
1 July 2016 RBC IS Bank Luxembourg EUR 70,380 USD (78,428) (239)
1 July 2016 RBC IS Bank Luxembourg EUR 401,051 USD (447,119) (1,572)
1 July 2016 RBC IS Bank Luxembourg EUR 463,636 USD (526,849) (11,772)
1 July 2016 RBC IS Bank Luxembourg EUR 38,542 USD (43,796) (979)
1 July 2016 RBC IS Bank Luxembourg EUR 289,848 USD (330,487) (8,481)
1 July 2016 RBC IS Bank Luxembourg EUR 96,410 USD (109,928) (2,821)
1 July 2016 RBC IS Bank Luxembourg USD 502,457 EUR (447,082) 5,772
1 July 2016 RBC IS Bank Luxembourg USD 141,224 EUR (125,660) 1,622
1 July 2016 RBC IS Bank Luxembourg EUR 861,453 USD (971,279) (14,248)
1 July 2016 RBC IS Bank Luxembourg EUR 53,738 USD (60,589) (889)
1 July 2016 RBC IS Bank Luxembourg USD 40,317,871 EUR (36,271,757) 21,763
1 July 2016 RBC IS Bank Luxembourg EUR 16,417 USD (18,025) 213
1 July 2016 RBC IS Bank Luxembourg USD 617 EUR (559) (4)
1 July 2016 RBC IS Bank Luxembourg USD 271,550 EUR (245,830) (1,576)
1 July 2016 RBC IS Bank Luxembourg EUR 4,758 USD (5,285) 2
5 July 2016 RBC IS Bank Luxembourg USD 67,814 EUR (61,098) (76)
5 July 2016 RBC IS Bank Luxembourg USD 1,511 EUR (1,360) (1)
29 July 2016 RBC IS Bank Luxembourg EUR 397,481 USD (442,595) (538)
29 July 2016 RBC IS Bank Luxembourg EUR 36,271,757 USD (40,377,937) (38,412)
29 July 2016 RBC IS Bank Luxembourg USD 18,397 EUR (16,527) 17
29 July 2016 RBC IS Bank Luxembourg USD 1,403,385 EUR (1,277,169) (16,996)
29 July 2016 RBC IS Bank Luxembourg USD 18,039 EUR (16,417) (218)
29 July 2016 RBC IS Bank Luxembourg USD 752,987 EUR (680,691) (4,037)
29 July 2016 RBC IS Bank Luxembourg EUR 245,830 USD (272,013) 1,386
29 July 2016 RBC IS Bank Luxembourg EUR 1,025,062 USD (1,139,444) 576
29 July 2016 RBC IS Bank Luxembourg EUR 61,098 USD (67,916) 34
29 July 2016 RBC IS Bank Luxembourg EUR 516,559 USD (574,464) 25
(236,587)
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
48
9. Forward Currency Contracts
Brookfield Real Assets Securities UCITS Fund* 30 June 2016 Settlement/ Counterparty Bought Amount Sold Amount Un realised Maturity Date Gain/(Loss) USD 5 July 2016 Northern Trust Company USD 56,923 CAD (74,264) (261)
(261) * Launched on 1 September 2015. Brookfield Global Listed Infrastructure Long Short UCITS Fund* 31 December 2015 Settlement/ Counterparty Bought Amount Sold Amount Un realised 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 * Launched on 26 August 2015.
10. Swaps Brookfield Global Listed Infrastructure Long Short UCITS Fund* 30 June 2016 Description Maturity Quantity Swaps Issuer Fair Value
Date Currency in USD AEROPORTS DE PARIS ADP 1 January 2040 (1,000) EUR JP Morgan 1,359 ANTERO MID /LP 1 January 2040 (6,100) USD JP Morgan (20,252) CHENIERE ENERGY 1 January 2040 (800) USD JP Morgan (3,560) CONSOLIDATED EDISON INC 1 January 2040 (4,200) USD JP Morgan (13,146) FRANKFURT AIRPORT SERV.WORLDW. 1 January 2040 (2,100) EUR JP Morgan (820) GENESIS ENERGY LP 1 January 2040 (8,200) USD JP Morgan (6,642) GRUPO AEROPORT.DEL SURES/SADR 1 January 2040 (1,950) USD JP Morgan (13,611) HAMBURGER HAFEN UND LOGISTIK AG 1 January 2040 (9,300) EUR JP Morgan 9,888 HOLLY EN-PARTNERSHIP UNITS 1 January 2040 (6,100) USD JP Morgan (11,590) ISHS US REAL ESTATE - SHS 1 January 2040 (2,300) USD JP Morgan (5,164) KEYERA 1 January 2040 (14,100) CAD JP Morgan (27,034) MAGELLAN MIDSTREAM PARTNERS 1 January 2040 (4,300) USD JP Morgan (13,116) PLAINS ALL-AM.PIPEL./PARTN 1 January 2040 (7,500) USD JP Morgan (9,000) TALLGRASS ENERGY PARTNERS LP 1 January 2040 (4,900) USD JP Morgan (98) TAV HAVALIMALARI HOLDING AS 1 January 2040 (31,500) TRY JP Morgan 16,759 TERNA- RETE ELETTRICA NAZIONAL 1 January 2040 (25,700) EUR JP Morgan (5,082) TERNA- RETE ELETTRICA NAZIONAL 1 January 2040 (18,700) EUR JP Morgan (8,171) TESORO LOGISTICS/PARTNERSHIP 1 January 2040 (6,300) USD JP Morgan (17,388) VALERO ENERGY PARTNERS LP /LP 1 January 2040 (6,200) USD JP Morgan (19,406) Total as at 30 June 2016 (146,074)
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
49
10. Swaps (continued)
31 December 2015 Description Maturity Quantity Swaps Issuer Fair Value
Date Currency 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)
* Launched on 26 August 2015. Brookfield Real Assets Securities UCITS Fund *
Description Maturity Quantity Swaps Issuer Fair Value Date Currency in USD
Bbg Com Ind - Bcom 1 January 2040 39,844 USD JP Morgan (24,365)
Total as at 30 June 2016 (24,365)
Description Maturity Quantity Swaps Issuer Fair Value Date Currency in USD
Bbg Com Ind - Bcom 31 January 2016 31,951 USD JP Morgan 27,487
Total as at 31 December 2015 27,487 * Launched on 1 September 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
50
11. Exchange Rates
The exchange rate to United States Dollar used in the preparation of these financial statements was:
Currency 30 June 2016 Currency 30 June 2016 AUD - Australian Dollar 0.744600 MXN - New Mexican Peso 0.054203 BRL - Brazilian Real 0.312134 NOK - Norwegian Krone 0.119504 CAD - Canadian Dollar 0.770001 NZD – New Zealand Dollar 0.712200 CHF - Swiss Franc 1.026483 SEK – Swedish Krona 0.118026 EUR - Euro 1.110950 SGD - Singapore Dollar 0.742997 GBP - Great British Pound 1.336800 TRY - New Turkisch Lira 0.347747 HKD - Hong Kong Dollar 0.128900 JPY - Japanese Yen 0.009748
Currency 31 December 2015 Currency 31 December 201 5 AUD - Australian Dollar 0.727550 HKD - Hong Kong Dollar 0.129030 BRL - Brazilian Real 0.252765 JPY - Japanese Yen 0.008313 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 Turkisch Lira 0.342601
12. Share Capital and Redeemable Participating Shar es
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.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
51
13. Soft Commission Arrangements
For the financial period ended 30 June 2016, 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. Net Asset Value
The Net Asset Value of the Sub-Funds for subscriptions and redemptions is based on investments valued at last traded prices. The Net Asset Value reported in these Financial Statements equals the Net Asset Value calculated for share dealing purposes.
Brookfield Global Listed Infrastructure UCITS Fund
30 June 2016 31 December 2015 31 December 2014
Net Assets USD 673,911,275 USD 566,836,698 USD 543,435,745
Net Asset Value per Share:
Net Asset Value Per Share B Class EUR 35.30 EUR 31.23 EUR 34.91
Net Asset Value Per Share E Class USD 29.14 USD 25.20 USD 31.38
Net Asset Value Per Share F Class USD 18.88 USD 16.65 USD 21.36
Net Asset Value Per Share M Class USD 17.10 USD 14.85 USD 18.65
Brookfield Global Listed Real Estate UCITS Fund
30 June 2016 31 December 2015 31 December 2014
Net Assets USD 180,424,374 USD 192,206,436 USD 186,618,019
Net Asset Value per Share:
Net Asset Value Per Share B Class EUR 42.07 EUR 40.05 EUR 36.91
Net Asset Value Per Share E Class USD 34.73 USD 32.33 USD 33.19
Net Asset Value Per Share F Class USD 21.68 USD 20.59 USD 21.78
Net Asset Value Per Share I Class* EUR 20.81 - -
Brookfield US Listed Real Estate UCITS Fund
30 June 2016 31 December 2015 31 December 2014
Net Assets USD 88,059,980 USD 70,031,764 USD 61,894,728
Net Asset Value per Share:
Net Asset Value Per Share E Class USD 36.01 USD 32.80 USD 35.12
Net Asset Value Per Share Q Class JPY 802.25 JPY 873.34 -
Brookfield Global Listed Infrastructure Long Short UCITS Fund**
30 June 2016 31 December 2015 31 December 2014
Net Assets USD 15,171,495 USD 13,910,398 -
Net Asset Value per Share:
Net Asset Value Per Share E Class USD 20.23 USD 18.55 -
Brookfield Real Assets Securities UCITS Fund***
30 June 2016 31 December 2015 31 December 2014
Net Assets USD 70,301,595 USD 63,142,925 -
Net Asset Value per Share:
Net Asset Value Per Share E Class USD 21.39 USD 19.21 -
* Launched on 25 May 2016 ** Launched on 26 August 2015. *** Launched on 1 September 2015.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC Notes to the financial statements for the six month financial period ended 30 June 2016 (continued)
52
15. Events during the Financial Period There were no material events during the financial period.
16. Events after the Financial Period End There were no material events after the financial period end.
17. Changes to the Prospectus There were no material changes to the Prospectus during the financial period.
18. Accounting Financial Period
The financial statements relate to the financial period ended 30 June 2016. The comparative amounts relate to the financial period from 1 January 2015 to 31 December 2015 and financial period from 1 January 2015 to 30 June 2015.
19. Approval of Financial Statements The Board approved the financial statements on 24 August 2016.
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
53
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND STATEMENT OF INVESTMENTS AS AT 30 JUNE 2016
Value % net
Shares USD assets INVESTMENTS TRANSFERABLE SECURITIES COMMON STOCKS AUSTRALIA Diversified Macquarie Atlas Roads Group 791,800 3,053,995 0.5 Total Diversified 3,053,995 0.5
Electric Utilities and Generation Origin Energy Ltd 765,700 3,278,306 0.5
Total Electric Utilities and Generation 3,278,306 0.5
Pipelines APA Group 270,700 1,862,444 0.3
Total Pipelines 1,862,444 0.3
Toll Roads Transurban Group 2,016,433 18,002,218 2.7 Total Toll Roads 18,002,218 2.7
TOTAL AUSTRALIA 26,196,963 4.0
BERMUDA ISLANDS Gas Utilities China Gas Holdings Ltd 2,015,600 3,070,964 0.5 Total Gas Utilities 3,070,964 0.5
TOTAL BERMUDA ISLANDS 3,070,964 0.5
CANADA Electricity Transmission & Distribution Hydro One Ltd 65,900 1,317,290 0.2 Total Electricity Transmission & Distribution 1,317,290 0.2
NEW ZEALAND Airports Auckland International Airport Ltd 759,400 3,515,490 0.5 Total Airports 3,515,490 0.5
TOTAL NEW ZEALAND 3,515,490 0.5
SINGAPORE Ports Hutchison Port Holdings Trust 2,863,800 1,303,029 0.2 Total Ports 1,303,029 0.2
TOTAL SINGAPORE 1,303,029 0.2
SPAIN Airport Aena SA 62,500 8,210,615 1.2 Total Airport 8,210,615 1.2
Communications Cellnex Telecom SAU 273,400 4,261,384 0.6
Total Communications 4,261,384 0.6
Electricity Transmission & Distribution Red Electrica Corp SA 71,000 6,323,605 0.9
Total Electricity Transmission & Distribution 6,323,605 0.9
Toll Roads
Ferrovial SA 349,884 6,777,048 1.0
Total Toll Roads 6,777,048 1.0
TOTAL SPAIN 25,572,652 3.7
SWITZERLAND Airports Flughafen Zuerich AG 64,150 11,339,178 1.7
Total Airports 11,339,178 1.7
TOTAL SWITZERLAND 11,339,178 1.7
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
56
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND STATEMENT OF INVESTMENTS AS AT 30 JUNE 2016 (contin ued)
Value % net
Shares USD assets UNITED STATES Communications SBA Communications Corp 171,200 18,479,328 2.7 Total Communications 18,479,328 2.7
Electric Utlities & Generation Ameren Corp 209,900 11,246,442 1.7 Edison International 178,500 13,864,095 2.1
Total Electric Utlities & Generation 25,110,537 3.8
Electricity Transmission & Distribution Eversource Energy 183,587 10,996,861 1.6
Total Electricity Transmission & Distribution 10,996,861 1.6
Gas Utilities NiSource Inc 506,000 13,419,120 2.0 ONE Gas Inc 51,700 3,442,703 0.5 Southwest Gas Corp 114,900 9,043,779 1.3 Spire Inc 48,500 3,435,740 0.5 Total Gas Utilities 29,341,342 4.3
Infrastructure - Diversified CenterPoint Energy Inc 212,000 5,088,000 0.8
Total Infrastructure - Diversified 5,088,000 0.8
Midstream EQT Midstream Partners LP 76,700 6,159,010 0.9 Kinder Morgan Inc 1,482,900 27,759,888 4.1 Rice Midstream Partners LP 427,211 8,371,313 1.2 Sunoco Logistics Partners LP 225,300 6,477,375 1.0 Targa Resources Corp 240,400 10,130,456 1.5 Western Gas Partners LP 81,900 4,127,760 0.6 Williams Cos Inc 592,800 12,822,264 1.9
Total Midstream 75,848,066 11.2
Pipelines Boardwalk Pipeline Partners LP 389,400 6,795,030 1.0 Enbridge Energy Partners LP 116,300 2,698,160 0.4 Energy Transfer Partners LP 763,400 21,007,008 3.1 Enterprise Products Partners LP 1,185,300 34,681,878 5.1 MPLX LP 193,156 6,495,836 1.0 SemGroup Corp 74,900 2,438,744 0.4 Sempra Energy 59,600 6,795,592 1.0 Williams Partners LP 157,488 5,455,384 0.8
Total Pipelines 86,367,632 12.8
Telecommunications American Tower Corp 386,018 43,855,505 6.5 Crown Castle International Corp 205,500 20,843,865 3.1 Total Telecommunications 64,699,370 9.6
Transmission & Distribution PG&E Corp 554,500 35,443,640 5.3
Total Transmission & Distribution 35,443,640 5.3
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
57
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND STATEMENT OF INVESTMENTS AS AT 30 JUNE 2016 (contin ued)
Value % net
Shares USD assets Water American Water Works Co Inc 229,200 19,369,692 2.9
Total Water 19,369,692 2.9
TOTAL UNITED STATES 370,744,468 55.0
Total COMMON STOCKS 653,619,046 97.0 (Cost $605,546,181)
TOTAL TRANSFERABLE SECURITIES 653,619,046 97.0
NON-TRANSFERABLE SECURITIES Forward (see note 9 for other details) (5,566) -
TOTAL NON-TRANSFERABLE SECURITIES (5,566) -
TOTAL INVESTMENT 653,613,480 97.0 (Cost $605,546,181) Other Assets in Excess of Liabilities 20,297,795 3.0
TOTAL NET ASSETS 673,911,275 100.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
58
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES AS AT 30 JUNE 2016
Significant Purchases Cost Security name Quantity (USD) Kinder Morgan Inc 1,684,300 29,605,369 TransCanada Corp 641,400 24,226,303 Ferrovial SA 592,060 11,873,624 Pennon Group Plc 935,900 11,602,258 Edison International 178,500 11,021,425 Ameren Corp 209,900 10,360,981 Williams Cos Inc 591,200 9,976,072 Aena SA 84,200 9,561,781 PG&E Corp 160,800 9,403,262 American Tower Corp 81,500 8,279,984 Targa Resources Corp 269,700 7,942,135 National Grid Plc 532,100 7,275,719 Cellnex Telecom SAU 402,500 6,555,669 SBA Communications Corp 64,900 6,469,202 Pembina Pipeline Corp 221,300 5,866,874 TransCanada Corp 167,700 5,828,666 Energy Transfer Equity LP 475,500 5,633,253 Columbia Pipeline Group Inc 275,800 5,614,051 Energy Transfer Partners LP 169,300 5,398,479 Snam SpA 883,601 4,993,809 NiSource Inc 247,900 4,923,392 Japan Airport Terminal Co Ltd 127,600 4,819,768 SES SA 166,100 4,355,088 Enbridge Inc 102,800 4,326,828 Southwest Gas Corp 65,900 3,848,137 Eutelsat Communications SA 170,800 3,715,361 Red Electrica Corp SA 40,800 3,525,036 Auckland International Airport Ltd 759,400 3,455,111 Rumo Logistica Operadora Multimodal SA 4,756,200 3,278,912 Beijing Enterprises Holdings Ltd 607,900 3,278,651 Spire Inc 48,500 3,269,353 Flughafen Zuerich AG 3,550 3,177,168 Origin Energy Ltd 765,700 3,150,479 Groupe Eurotunnel SE 260,200 2,941,905 Grupo Aeroportuario del Centro Norte SAB de CV 586,600 2,925,257
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
59
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE UCITS FUND SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES AS AT 30 JUNE 2016 (continued)
Significant Sales Proceeds Security name Quantity (USD) Ferrovial SA 1,001,582 21,134,023 Enbridge Inc 399,900 14,387,153 Columbia Pipeline Group Inc 553,700 13,997,877 Union Pacific Corp 183,500 13,944,676 Eversource Energy 221,713 12,177,901 Groupe Eurotunnel SE 842,700 9,837,041 Williams Cos Inc 435,400 8,917,417 Aeroports de Paris 74,900 8,572,463 Energy Transfer Partners LP 250,200 8,268,332 Veresen Inc 1,086,000 7,125,437 Transurban Group 767,200 6,812,432 TransCanada Corp 167,700 6,732,185 National Grid Plc 486,554 6,667,994 Rumo Logistica Operadora Multimodal SA 4,756,200 6,126,473 SBA Communications Corp 61,000 5,992,132 Aena SA 43,800 5,902,371 Red Electrica Corp SA 65,400 5,746,124 SES SA 235,000 5,561,797 ITC Holdings Corp 141,200 5,468,074 Inter Pipeline Ltd 328,300 5,046,604 Energy Transfer Equity LP 381,900 4,848,419 Targa Resources Corp 112,300 4,417,384 CSX Corp 177,500 4,364,085 Severn Trent Plc 136,000 4,105,678 United Utilities Group Plc 298,500 3,994,799 Kinder Morgan Inc 201,400 3,801,433 Crown Castle International Corp 38,000 3,762,746 TransCanada Corp 90,200 3,604,517 ENN Energy Holdings Ltd 673,300 3,400,466 Pembina Pipeline Corp 112,900 3,180,676 American Water Works Co Inc 44,600 3,116,744 Pepco Holdings LLC 115,000 3,114,022 NiSource Inc 128,700 2,980,172 CenterPoint Energy Inc 160,600 2,900,891
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
60
BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND STATEMENT OF INVESTMENTS AS AT 30 JUNE 2016
Value % net
Shares USD assets INVESTMENTS TRANSFERABLE SECURITIES COMMON STOCKS AUSTRALIA Real Estate - Diversified Dexus Property Group 546,083 3,667,653 2.0
Real Estate Management/Service Vonovia SE 99,730 3,643,827 2.0
Total Real Estate Management/Service 3,643,827 2.0
Retail Deutsche EuroShop AG 91,700 4,241,019 2.4
Total Retail 4,241,019 2.4
TOTAL GERMANY 12,341,318 6.9
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
61
BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND STATEMENT OF INVESTMENTS AS AT 30 JUNE 2016 (contin ued)
Value % net
Shares USD assets GREAT BRITAIN Diversified - Real Estate Land Securities Group Plc 394,900 5,484,905 3.0
Total Diversified - Real Estate 5,484,905 3.0
Industrial Segro Plc 275,800 1,528,955 0.9
Total Industrial 1,528,955 0.9
Office Great Portland Estates Plc 86,500 724,442 0.4 Total Office 724,442 0.4
Retail Hammerson Plc 605,600 4,355,466 2.4
Total Retail 4,355,466 2.4
TOTAL GREAT BRITAIN 12,093,768 6.7
HONG KONG Real Estate - Diversified Swire Properties Ltd 662,500 1,754,893 1.0 Wharf Holdings Ltd 956,000 5,785,573 3.2 Total Real Estate - Diversified 7,540,466 4.2
TOTAL HONG KONG 7,540,466 4.2
JAPAN Office Mitsubishi Estate Co Ltd 288,945 5,275,310 2.9 Nippon Building Fund Inc 350 2,159,568 1.1
Total Office 7,434,878 4.0
Real Estate - Diversified GLP J-Reit 1,486 1,880,133 1.1 Mitsui Fudosan Co Ltd 175,900 3,997,572 2.2
Total Real Estate - Diversified 5,877,705 3.3
Residential Nippon Accommodations Fund Inc 474 2,162,316 1.2
Total Residential 2,162,316 1.2 TOTAL JAPAN 15,474,899 8.5
JERSEY Retail Atrium European Real Estate Ltd 666,685 2,856,701 1.6
Total Retail 2,856,701 1.6 TOTAL JERSEY 2,856,701 1.6
NEW ZEALAND Real Estate Operator/Developer Precinct Properties New Zealand Ltd 1,476,372 1,309,083 0.7
Real Estate Operator/Developer 1,309,083 0.7 TOTAL NEW ZEALAND 1,309,083 0.7
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
62
BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND STATEMENT OF INVESTMENTS AS AT 30 JUNE 2016 (contin ued)
Specialty Outfront Media Inc 172,299 4,164,467 2.2
Total Specialty 4,164,467 2.2
Triple Net Lease Gramercy Property Trust 386,200 3,560,763 2.0 MGM Growth Properties LLC 89,200 2,379,856 1.4 Spirit Realty Capital Inc 186,400 2,380,328 1.3 Total Triple Net Lease 8,320,947 4.7
TOTAL UNITED STATES 95,579,821 52.8
TOTAL COMMON STOCKS 177,196,151 98.2 (Cost $172,867,747)
TOTAL TRANSFERABLE SECURITIES 177,196,151 98.2
NON-TRANSFERABLE SECURITIES Forward (see note 9 for other details) (236,587) (0.1)
TOTAL NON-TRANSFERABLE SECURITIES (236,587) (0.1) TOTAL INVESTMENTS 176,959,564 98.1 (Cost $172,867,747) Other Assets in Excess of Liabilities 3,464,810 1.9
TOTAL NET ASSETS 180,424,374 100.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
64
BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES AS AT 30 JUNE 2016
Significant Purchases Cost Security name Quantity (USD) Simon Property Group Inc 39,100 7,561,780 Land Securities Group Plc 420,900 6,347,399 Deutsche EuroShop AG 105,400 4,689,519 Gramercy Property Trust 505,200 3,883,263 Vornado Realty Trust 37,200 3,515,353 Highwoods Properties Inc 66,900 3,242,028 Hongkong Land Holdings Ltd 470,700 2,854,043 Physicians Realty Trust 170,302 2,851,745 CyrusOne Inc 69,100 2,782,535 Welltower Inc 40,600 2,623,978 American Homes 4 Rent 137,500 2,455,953 Mitsui Fudosan Co Ltd 101,400 2,454,132 Mitsubishi Estate Co Ltd 129,000 2,446,649 Wharf Holdings Ltd 448,100 2,400,480 Unibail-Rodamco SE 8,400 2,265,882 Kilroy Realty Corp 37,600 2,254,654 Spirit Realty Capital Inc 186,400 2,102,269 MGM Growth Properties LLC 94,100 2,100,673 Hammerson Plc 229,400 1,915,659 Nippon Accommodations Fund Inc 474 1,902,000 alstria office REIT-AG 141,800 1,871,772 Liberty Property Trust 51,000 1,863,937 SOHO China Ltd 3,947,500 1,833,312 Prologis Inc 41,800 1,806,588 Segro Plc 275,800 1,772,980 Host Hotels & Resorts Inc 116,800 1,762,722 Vicinity Centres 763,200 1,748,060 Urban Edge Properties 63,900 1,690,124 Equity Commonwealth 59,557 1,686,581 Dexus Property Group 275,800 1,669,037 SL Green Realty Corp 15,700 1,501,530 Outfront Media Inc 69,000 1,476,817 DiamondRock Hospitality Co 148,000 1,405,791 Global Logistic Properties Ltd 990,700 1,299,915 Vonovia SE 38,000 1,287,674 Westfield Corp 167,700 1,271,496 AvalonBay Communities Inc 7,100 1,260,815 Care Capital Properties Inc 48,000 1,236,710 Scentre Group 363,600 1,211,982 Ventas Inc 19,400 1,199,411 Hersha Hospitality Trust 57,900 1,079,695
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
65
BROOKFIELD GLOBAL LISTED REAL ESTATE UCITS FUND SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES AS AT 30 JUNE 2016 (continued)
Pipelines Energy Transfer Partners LP 8,500 323,595 2.1 Enterprise Products Partners LP 16,700 488,642 3.2 MPLX LP 7,200 242,136 1.6 Williams Partners LP 8,800 304,832 2.0
Total Pipelines 1,359,205 8.9
Telecommunications American Tower Corp 4,200 477,162 3.1
Total Telecommunications 477,162 3.1 TOTAL UNITED STATES 4,236,875 27.8
Total COMMON STOCKS 6,387,098 42 (Cost $5,327,229)
TOTAL TRANSFERABLE SECURITIES 6,387,098 42 NON-TRANSFERABLE SECURITIES Swap (see note 10 for other details) (146,074) (0.9)
TOTAL NON-TRANSFERABLE SECURITIES (146,074) (0.9) TOTAL INVESTMENTS 6,241,024 41.1 (Cost $5,327,229) Other Assets in Excess of Liabilities 8,930,471 58.9
TOTAL NET ASSETS 15,171,495 100.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
72
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE LONG SHORT UCITS FUND SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES AS AT 30 JUNE 2016
Significant Purchases Cost Security name Quantity (USD) Williams Cos Inc 112,300 1,945,083 Ferrovial SA 43,277 864,543 OHL Mexico SAB de CV 598,900 798,156 Enterprise Products Partners LP 28,300 734,600 Williams Partners LP 21,800 540,195 Pembina Pipeline Corp 20,100 522,997 Infrastrutture Wireless Italiane SpA 101,700 516,140 MPLX LP 16,400 482,725 DONG Energy A/S 13,300 476,064 Energy Transfer Partners LP 13,900 460,189 EQT Midstream Partners LP 5,900 454,633 Sunoco Logistics Partners LP 15,800 450,748 SemGroup Corp 16,000 406,308 NextEra Energy Partners LP 15,300 397,800 Rice Midstream Partners LP 19,100 307,359 SBA Communications Corp 3,000 291,653 Tokyo Gas Co Ltd 65,400 282,879 Targa Resources Corp 15,582 278,866 California Water Service Group 10,900 261,971 Enbridge Energy Partners LP 13,000 206,987 Grupo Aeroportuario del Centro Norte SAB de CV 39,700 186,159 Shell Midstream Partners LP 5,000 158,750 Enbridge Inc 5,100 152,647 TransCanada Corp 4,100 142,502 Southwest Gas Corp 2,500 142,256
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
73
BROOKFIELD GLOBAL LISTED INFRASTRUCTURE LONG SHORT UCITS FUND SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES AS AT 30 JUNE 2016 (continued)
Significant Sales Proceeds Security name Quantity (USD) Williams Cos Inc 105,000 1,910,702 Institutional Cash Series Plc - Institutional US Dollar Liquidity Fund 1,126,477 1,126,477 OHL Mexico SAB de CV 535,100 723,877 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 DONG Energy A/S 13,300 512,362 Groupe Eurotunnel SE 44,400 508,159 SemGroup Corp 16,000 453,186 Energy Transfer Partners LP 13,400 451,826 Enterprise Products Partners LP 16,900 416,460 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 Targa Resources Corp 11,652 328,295 Veresen Inc 47,000 325,653 Union Pacific Corp 3,900 308,599 EQT Midstream Partners LP 3,800 289,265 MPLX LP 9,200 283,360 Tokyo Gas Co Ltd 65,400 272,062 Origin Energy Ltd 85,300 270,854 Rice Midstream Partners LP 14,500 261,103 SBA Communications Corp 2,900 260,207 Pembina Pipeline Corp 9,400 255,938 Cosan Ltd 84,600 241,776 Enbridge Energy Partners LP 13,000 240,986 Promotora y Operadora de Infraestructura SAB de CV 17,800 226,676 CenterPoint Energy Inc 12,000 215,830 Eiffage SA 2,500 171,191 Shell Midstream Partners LP 5,000 164,770 Transurban Group 19,600 163,865 TransCanada Corp 4,100 162,850 Enbridge Inc 5,100 159,034
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
74
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND STATEMENT OF INVESTMENTS AS AT 30 JUNE 2016
Value % net
Shares USD assets INVESTMENTS TRANSFERABLE SECURITIES COMMON STOCKS AUSTRALIA Containers & Packaging Amcor Ltd 5,245 58,308 0.1
Total Containers & Packaging 58,308 0.1
Diversified Macquarie Atlas Roads Group 24,600 94,883 0.1 Total Diversified 94,883 0.1
Electric Utilities and Generation Origin Energy Ltd 22,800 97,617 0.1
Total Electric Utilities and Generation 97,617 0.1
Exploration & Production BHP Billiton Ltd 12,803 365,654 0.5 Karoon Gas Australia Ltd 54,390 52,041 0.1 Senex Energy Ltd 66,820 12,687 - Total Exploration & Production 430,382 0.6
Metals & Mining South32 Ltd 70,700 81,071 0.1
Total Metals & Mining 81,071 0.1
Pipelines APA Group 8,000 55,041 0.1
Total Pipelines 55,041 0.1
Real Estate - Diversified Dexus Property Group 57,300 384,844 0.5 Total Real Estate - Diversified 384,844 0.5
NEW ZEALAND Airports Auckland International Airport Ltd 22,200 102,770 0.1
Total Airports 102,770 0.1
Real Estate Operator/Developer Precinct Properties New Zealand Ltd 83,000 73,595 0.1 Total Real Estate Operator/Developer 73,595 0.1
TOTAL NEW ZEALAND 176,365 0.2
NORWAY Chemicals Yara International ASA 1,365 43,032 0.1 Total Chemicals 43,032 0.1
TOTAL NORWAY 43,032 0.1
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
81
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND STATEMENT OF INVESTMENTS AS AT 30 JUNE 2016 (contin ued)
Value % net
Shares USD assets SINGAPORE Food Products Wilmar International Ltd 26,010 63,001 0.1 Total Food Products 63,001 0.1
Industrial Global Logistic Properties Ltd 234,700 314,758 0.4
Total Industrial 314,758 0.4
Ports Hutchison Port Holdings Trust 59,300 26,982 -
Total Ports 26,982 -
TOTAL SINGAPORE 404,741 0.5
SPAIN Airports Aena SA 1,800 236,466 0.3
Total Airports 236,466 0.3
Communications Cellnex Telecom SAU 8,000 124,693 0.2 Total Communications 124,693 0.2 Electricity Transmission & Distribution Red Electrica Corp SA 1,990 177,239 0.3 Total Electricity Transmission & Distribution 177,239 0.3 Toll Roads Ferrovial SA 10,263 198,788 0.3 Total Toll Roads 198,788 0.3
TOTAL SPAIN 737,186 1.1
SWEDEN Exploration & Production Lundin Petroleum AB 2,600 46,859 0.1 Total Exploration & Production 46,859 0.1
Metals & Mining Boliden AB 3,800 73,016 0.1
Total Metals & Mining 73,016 0.1
TOTAL SWEDEN 119,875 0.2
SWITZERLAND Airports Flughafen Zuerich AG 2,000 353,521 0.5
Total Airports 353,521 0.5
Basic Materials Syngenta AG 3,310 254,175 0.4
Total Basic Materials 254,175 0.4
TOTAL SWITZERLAND 607,696 0.9
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
82
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND STATEMENT OF INVESTMENTS AS AT 30 JUNE 2016 (contin ued)
Value % net
Shares USD assets UNITED STATES Basic Materials Freeport-McMoRan Inc 9,094 101,307 0.1 International Paper Co 2,462 104,340 0.1 Monsanto Co 2,837 293,373 0.4 Mosaic Co 862 22,567 - Newmont Mining Corp 6,256 244,735 0.3 Nucor Corp 3,400 167,994 0.2 Packaging Corp of America 790 52,875 0.1 Stillwater Mining Co 10,294 122,087 0.2
Containers & Packaging AptarGroup Inc 431 34,105 - Bemis Co Inc 431 22,192 - WestRock Co 1,355 52,669 0.1
Total Containers & Packaging 108,966 0.1
Electric Utilities & Generation Ameren Corp 6,300 337,554 0.5 Edison International 5,100 396,117 0.6 NextEra Energy Inc 3,000 391,200 0.6
Total Electric Utilities & Generation 1,124,871 1.7
Electricity Transmission & Distribution Eversource Energy 5,730 343,226 0.5 PS Business Parks Inc 5.7% 2,532 66,946 0.1 PS Business Parks Inc 5.75% 3,262 84,062 0.1 PS Business Parks Inc 6% 6,806 177,637 0.3
Total Electricity Transmission & Distribution 671,871 1.0
Energy Baker Hughes Inc 900 40,617 0.1 Helmerich & Payne Inc 800 53,704 0.1 Newfield Exploration Co 2,700 119,286 0.2
Total Energy 213,607 0.4
Exploration & Production Anadarko Petroleum Corp 2,720 144,840 0.2 Cabot Oil & Gas Corp 1,660 42,728 0.1 Cimarex Energy Co 600 71,592 0.1 Concho Resources Inc 660 78,718 0.1 Parsley Energy Inc 4,600 124,476 0.2 Total Exploration & Production 462,354 0.7
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
83
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND STATEMENT OF INVESTMENTS AS AT 30 JUNE 2016 (contin ued)
Value % net
Shares USD assets Food Products Archer-Daniels-Midland Co 3,526 151,230 0.2 Ingredion Inc 718 92,916 0.1 Total Food Products 244,146 0.3
Gas Utilities Columbia Pipeline Partners LP 16,520 247,800 0.4 NiSource Inc 23,630 626,667 0.9 ONE Gas Inc 2,850 189,782 0.3 Southwest Gas Corp 4,200 330,582 0.5 Spire Inc 1,400 99,176 0.1
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND STATEMENT OF INVESTMENTS AS AT 30 JUNE 2016 (contin ued)
Principal Interest Amount % net Rate Maturity (000s) Value assets UNITED STATES Capital Goods Terex Corp 6.00 % 05/15/21 $ 125 $ 125,156 0.2 Total Capital Goods 125,156 0.2
TERM LOANS AUSTRALIA Term Loans FMG Resources August 2006 Pty Ltd 0.00 06/30/19 203 193,992 0.3
Total Term Loans 193,992 0.3
CANADA Term Loans Four Seasons Holdings Inc 0.00 12/28/20 300 298,689 0.4
Total Term Loans 298,689 0.4
UNITED STATES Term Loans MEG Energy Corp 0.00 03/31/20 199 174,830 0.2
Total Term Loans 174,830 0.2
Total TERM LOANS 667,511 0.9 (Cost $450,584)
TRANSFERABLE SECURITIES 64,312,863 91.4
NON-TRANSFERABLE SECURITIES Forward (see note 9 for other details) (261) - Swap (see note 10 for other details) (24,365) - TOTAL NON-TRANSFERABLE SECURITIES (24,626) - TOTAL INVESTMENTS 64,288,237 91.40 (Cost $60,451,695) Other Assets in Excess of Liabilities 6,013,358 8.6 TOTAL NET ASSETS 70,301,595 100.0
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
89
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES AS AT 30 JUNE 2016
Significant Purchases Cost Security name Quantity (USD) Kinder Morgan Inc 65,500 1,139,352 TransCanada Corp 21,900 849,203 Land Securities Group Plc 43,500 651,321 American Tower Corp 5,600 586,331 Simon Property Group Inc 2,700 518,728 National Grid Plc 36,300 499,853 Targa Resources Corp 16,708 494,211 Tesoro Logistics LP / Tesoro Logistics Finance Corp 6.125% 15/10/2021 500,000 469,698 Columbia Pipeline Group Inc 17,490 413,019 Targa Resources Partners LP / Targa Resources Partners Finance Corp 5.25% 01/05/2023 425,000 411,869 Dynegy Inc 6.75% 01/11/2019 400,000 401,728 Buckeye Partners LP 6,060 398,829 Tenet Healthcare Corp 8.125% 01/04/2022 375,000 398,424 HCA Inc 5.25% 15/06/2026 375,000 389,367 NextEra Energy Inc 3,000 383,377 CenturyLink Inc 7.65% 15/03/2042 450,000 382,888 Enterprise Products Partners LP 14,030 379,943 PG&E Corp 6,100 368,044 Highwoods Properties Inc 7,500 359,922 Pennon Group Plc 28,500 345,687 Gramercy Property Trust 46,000 341,488 Ferrovial SA 16,929 340,496 Edison International 5,100 326,520 Snam SpA 57,689 324,457 Ameren Corp 6,500 322,075 American Homes 4 Rent 5% 11,900 318,588
BROOKFIELD INVESTMENT FUNDS (UCITS) PLC
90
BROOKFIELD REAL ASSETS SECURITIES UCITS FUND SCHEDULE OF SIGNIFICANT PORTFOLIO CHANGES AS AT 30 JUNE 2016 (continued)
Significant Sales Proceeds Security name Quantity (USD) Columbia Pipeline Group Inc 26,560 676,377 HCA Inc 5.875% 01/05/2023 600,000 634,525 Simon Property Group Inc 2,918 583,224 Prologis Inc 12,013 537,431 CenturyLink Inc 5.8% 15/03/2022 525,000 511,294 Tesoro Logistics LP / Tesoro Logistics Finance Corp 6.125% 15/10/2021 500,000 508,833 Enterprise Products Partners LP 21,910 506,080 Casella Waste Systems Inc 7.75% 15/02/2019 475,000 495,045 Ferrovial SA 19,962 419,939 Neptune Finco Corp 10.875% 15/10/2025 350,000 419,096 Puma International Financing SA 6.75% 01/02/2021 400,000 404,100 Dexus Property Group 61,800 383,586 Targa Resources Corp 9,500 376,306 Terex Corp 6% 15/05/2021 375,000 371,980 Hudson Pacific Properties Inc 12,700 367,120 TerraForm Power Operating LLC 5.875% 01/02/2023 400,000 353,732 Eversource Energy 6,100 338,629 Syngenta AG 4,037 327,729 Tesoro Logistics LP / Tesoro Logistics Finance Corp 6.25% 15/10/2022 350,000 326,302