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Memos from Howard Marks: Ruminating on Asset AllocationSam Garetano, Senior Vice President in Brookfield’s infrastructure Group was recently interviewed by Jane King to discuss Brookfield Infrastructure Income Fund, Inc. (BII), a continuously offered, non-diversified closed-end fund.
Sam Garetano describes Brookfield Infrastructure Income Fund as “an evergreen offering that’s intended to be a comprehensive private infrastructure allocation that provides exposure to both private infrastructure debt as well as private infrastructure equity.” Garetano makes the case for BII as a portfolio investment that is more than just a fixed-income substitute, saying it also potentially provides inflation protection — as infrastructure is historically less prone to market cycles — while being backed by Brookfield’s management expertise.
Important Disclosures
Investors should consider the investment objectives, risks, charges and expenses of the Brookfield Infrastructure Income Fund carefully before investing. For this and other important information about the Fund the prospectus can be found at https://www.brookfieldoaktree.com/fund/brookfield-infrastructure-income-fund-inc. Or you may call Brookfield Oaktree Wealth Solutions on 855-777-8001. Please read the prospectus carefully before investing.
There is no assurance the Fund will pay distributions in any particular amount, if at all. Any distributions the Fund makes will be at the discretion of the Fund’s board of directors. The Fund may fund any distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital or offering proceeds, and the Fund has no limits on the amounts the Fund may pay from such sources. Liquidity is only provided through the Fund’s share repurchase plan, which has quarterly limits and may be suspended.
Investing in the Fund involves risk, including possible loss of principal invested. There can be no assurance that the Fund mentioned herein will achieve its investment objective.
Private infrastructure investments are subject to the risks incidental to the ownership and operation of infrastructure projects, including risks associated with the general economic climate, geographic or market concentration, government regulations and fluctuations in interest rates. Since investments in infrastructure securities, like many other types of long-term investments, have historically experienced significant fluctuations and cycles in value, specific market conditions may result in occasional or permanent reductions in the value of these investments. Such specific market conditions could include, but are not limited to, the following: (i) demand for commodities, such as natural gas or minerals; (ii) impact of alternative technologies on our business and cyber security attacks; (iii) ability to successfully identify, complete and integrate acquisitions; (iv) competition with other market participants; (v) construction or expansion or projects, environmental damage and future capital expenditures; (vi) economic regulation and adverse regulatory decisions; (vii) supply chain disruptions; and(viii) adverse claims or governmental rights.
The Fund intends to distribute substantially all of its net investment income to common stockholders in the form of distributions. Under normal market conditions, the Fund intends to declare and pay distributions monthly to common stockholders of record. In addition, the Fund intends to distribute any net capital gains earned from the sale of portfolio securities to common stockholders no less frequently than annually, although net short-term capital gains may be paid more frequently. However, the Fund cannot guarantee that it will make distributions and the amount of distributions that the Fund may pay, if any, is uncertain.
The Fund may pay distributions from sources other than cash flow from operations, including, without limitation, the sale of assets, borrowings, return of capital, or offering proceeds.
The Fund’s Shares have no history of public trading, nor is it currently intended that the Shares will be listed on a public exchange or any other trading market in the near future. No organized secondary market is expected to develop for the Shares, and liquidity for the Shares is expected to be provided only through quarterly tender offers of the Shares at NAV per share. There is no guarantee that repurchases will occur or that an investor will be able to sell all the Shares that the investor desires to sell in a tender offer. Due to these restrictions, an investor should consider an investment in the Fund to be illiquid.
Investing in the Shares may be speculative and involves a high degree of risk, including the risks associated with leverage. The Fund currently intends to use leverage from time to time to facilitate short-term working capital requirements and to seek to achieve its investment objectives. Leverage creates risks that may adversely affect the return for the stockholders.
The Fund is new, with a limited operating history, and there can be no assurance that the Fund will grow or maintain an economically viable size, in which case the Board of Trustees of the Fund may decide to liquidate the Fund.
Brookfield Infrastructure Income Fund Inc. is distributed by Quasar Distributors, LLC.