Brookfield's Real Assets Fund Offers A 10.6% Yield But Not Much Else

(This report was posted to members of Yield Hunting on August 22nd and the data herein is from then)
Brookfield Real Assets Income Like many of the funds that exist today, Brookfield Real Assets (RA) is a byproduct of a merger of several other funds. Those include Brookfield Mortgage Opportunity Income (BOI), Brookfield High Income (HHY) and Brookfield Total Return (HTR).
Investment Strategy: Brookfield Real Assets Income Fund Inc. is a closed-end investment fund. The Fund’s investment objective is to provide a high total return, primarily through high current income and secondarily, through growth of capital. The Fund seeks to meet its investment objective by investing primarily in securities and other instruments of companies and issuers in the “real assets” asset class, which includes the following: Real Estate Securities; Infrastructure Securities; and Natural Resources Securities (collectively, “Real Asset Companies and Issuers”).
Fund Characteristics Fund assets: $864M Discount: -5.36% Leverage: 22% Distribution payment: $0.199 Distribution yield: 10.83% Duration: 1.6 years No. of holdings: 322 Weighted Avg Coupon: 5.06% Fixed/floating: 64% / 36% The Portfolio The mandate in this fund is fairly wide open. They simply have an "80% policy" whereby 80% of the assets must be invested in securities and other instruments of "Real Asset Companies." The prospectus indicates that they "normally" invest at least 65% of their managed assets in fixed income securities... Read more