Brookfield U.S. Listed Real Estate Fund seeks total return through growth of capital and current income. The Fund seeks to achieve its investment objective by investing primarily in real estate investment trusts (“REITs”) and other securities in the real estate industry. Under normal market conditions, the Fund will attempt to achieve its investment objective by investing, as a principal strategy, at least 80% of its net assets (plus the amount of any borrowing for investment purposes) in publicly traded equity securities of real estate companies listed on a domestic stock exchange (the “80% Policy”). The Fund may also invest up to 20% of its net assets (plus the amount of any borrowing for investment purposes) in fixed income securities, including below-investment grade rated securities.
The Fund defines a real estate company as any company that (i) derives at least 50% of its revenues from the ownership, operation, development, construction, financing, management or sale of commercial, industrial or residential real estate and similar activities, or (ii) invests at least 50% of its assets in such real estate.
For purposes of selecting investments, the Fund defines the real estate industry broadly. It includes, but is not limited to, the following:
- real estate operating companies;
- brokers, developers, and builders of residential, commercial, and industrial properties;
- property management firms;
- finance, mortgage, and mortgage servicing firms;
- construction supply and equipment manufacturing companies; and
- firms dependent on real estate holdings for revenues and profits, including lodging, leisure, timber, mining, and agriculture companies.
Notice regarding 1099-DIV
The Brookfield Global Listed Infrastructure, Brookfield Global Listed Real Estate, Brookfield US Listed Real Estate and Brookfield Real Assets Securities Funds (The Brookfield Funds) will mail tax form statements (1099-DIV) on a delayed basis. The Brookfield Funds invest in Master Limited Partnerships (MLPs) and real estate investment trusts (REITs), and even though the Brookfield Funds identify the total amount of distributions received from those investments throughout the tax year, the Funds cannot accurately identify the tax character of these distributions, due to certain tax adjustments, until form K-1 and 1099 information is received from Funds’ MLP and REIT investments and the Fund can appropriately characterize the income from these investments. The Funds will seek to provide forms 1099-DIV to investors as soon as possible.
For the reasons outlined above, the Brookfield Funds requested an extension from the Internal Revenue Service to mail forms 1099-DIV through March 15th, 2017, however anticipate mailing in advance of that date in late February.
Why Invest in the Brookfield U.S. Listed Real Estate Fund
An Opportunity to capitalize on the Income and growth potential of U.S. real estate markets
The Manager believes that real estate securities offer a compelling way to access the income and growth potential of U.S. real estate markets, while relying on the liquidity, transparency and corporate governance found in publicly traded securities markets.
A Fund with Income and Growth Potential
REITs invest in commercial real estate, which comprises tangible assets such as land and buildings. Their values have shown the ability to increase over time as replacement costs and rents rise, which can lead to attractive income and capital appreciation potential.
A Tool for Enhancing Portfolio Diversification Potential
Since the performance of real estate securities is tied to the cash flows generated by commercial real estate properties, the securities that own these properties may perform differently from other asset classes. For this reason, an allocation to real estate securities may offer complementary diversification potential to a traditional portfolio concentrated in stocks and bonds.
A Distinctive Management Team with Specialized Expertise
The investment team of experienced analysts and portfolio managements employ a bottom-up, value-driven and fundamentally based process to identify the Fund’s holdings, which are diversified by property type and geography across U.S. markets.
Diversification does not guarantee a profit or protect from loss in a declining market.
Cash flows refer to the amount of cash generated and used by a company over a given period.
Shareholder Account Information – Initial Sales Charge (Class A Shares Only)
The sales charge is imposed on Class A Shares of a Fund at the time of purchase in accordance with the following schedule:
|Amount of Investment
||Sales Charge as % of the Offering Price*
||Sales Charge as % of Amount Invested
||Reallowance to Broker-Dealers
|Less than $50,000
|$50,000 but under $100,000
|$100,000 but under $250,000
|$250,000 but under $500,000
|$500,000 but under $1 million
|$1 million or more
* Includes front-end sales load.
No sales charge is imposed on reinvestment of distributions selected in advance of the distributions.
Breakpoints or Volume Discounts
Each Fund offers you the benefit of discounts on the sales charges that apply to purchases of Class A Shares in certain circumstances. These discounts, which are also known as breakpoints, can reduce or, in some instances, eliminate the initial sales charges that would otherwise apply to your investment in Class A Shares. Mutual funds are not required to offer breakpoints and different mutual fund groups may offer different types of breakpoints.
Breakpoints or Volume Discounts allow larger investments in Class A Shares to be charged lower sales charges. If you invest $50,000 or more in Class A Shares of a Fund, then you are eligible for a reduced sales charge. Initial sales charges are eliminated completely for purchases of $1,000,000 or more, although a 1% CDSC may apply if shares are redeemed within eighteen months after purchase.