FUND BASICS Annual Management Fee 1 0.95% Total Expense Ratio 2 1.00% AT A GLANCE Bloomberg ISIN Inception Date Total Class Assets Class B - Institutional Accumulation (EUR) BFIFIUB IE00B63LDC43 November 30, 2011 $376 million Class E - Institutional Accumulation (USD) BFIFIUE IE00B4LP5Q27 November 30, 2011 $129 million Class F - Institutional Distribution (USD) BFIFIDF IE00BB36BR51 June 18, 2013 $96 million *May include additional share classes INVESTMENT OBJECTIVE Total Fund Assets: $602 million* The Fund seeks total return through growth of capital and current income. There can be no assurance that the Fund will achieve its investment objective. AVERAGE ANNUAL TOTAL RETURNS AS OF MARCH 31, 2016 Q1 2016 Year-To-Date 1 Year 3 Years Inception Class B (EUR) -0.27% -0.27% -17.86% 4.41% 10.75% Dow Jones Brookfield Global Infrastructure Composite Index (EUR) 3 0.61% 0.61% -13.51% 8.15% 13.24% Class E (USD) 4.62% 4.62% -12.85% 0.36% 6.58% Dow Jones Brookfield Global Infrastructure Composite Index (USD) 3 5.54% 5.54% -8.23% 3.94% 8.97% Class F (USD) 4.62% 4.62% -12.85% N/A -0.26% Dow Jones Brookfield Global Infrastructure Composite Index (USD) 3 5.54% 5.54% -8.23% N/A 4.10% Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by calling +1 (855) 777-8001. Investment performance reflects fee waivers, expenses and reimbursements in effect. In the absence of such waivers, total return and NAV would be reduced. MARKET COMMENTARY A tale of two halves defines volatile first quarter The first quarter of 2016 was defined by two distinct halves. The first half was marked with extreme periods of volatility as the MSCI World 4 and S&P 500 Indexes 5 fell 11.7% and 10.5%, respectively, through February 11 before staging an historic intra-quarter rally during the latter half. Global equities, as measured by the MSCI World Index returned -0.2% in the quarter. By region, North America gained 1.5%, while Asia Pacific fell 3.7% and Europe was down 2.4%. In the U.S., the S&P 500 Total Return Index returned 1.4%. Many of the drivers financial markets faced in 2015 remained prevalent into the beginning of 2016, including heightened economic and financial uncertainties in China, volatile commodity prices (particularly oil) and monetary policy decisions around the globe. Volatility early in the quarter was largely driven by news out of China as stocks fell heavily on concerns about the rapid devaluation of the Yuan, slowing economic growth and accelerating capital outflows. The Shanghai Composite Index 6 was down 22% in January, recovering somewhat in February and March to close the quarter down about 15%. Equity markets particularly in the U.S. continued to be highly correlated with changes in the price of oil. West Texas Intermediate Crude closed down nearly 30% through February 11, then rallying 41% to close the quarter at $36.94 per barrel. Many market observers predicted that central bank policy around the world would begin to diverge in 2016 with the U.S. tightening while the rest of the world eases. That has not necessarily been the case as policy makers in the largest economies have remained dovish. At its March meeting the U.S. Federal Reserve kept its benchmark lending rate steady at 0.25% to 0.50% and Fed officials reduced estimates of how much they expect short-term rates to increase in 2016. Federal Reserve Chair Janet Yellen said U.S. central bankers should proceed cautiously with further rate hikes given risks to global economic growth notably China and commodity prices (oil in particular). A weakening U.S. dollar in light of the Fed news helped push U.S. large-cap stocks higher. During the quarter, the yield on 10-Year U.S. Treasury Bonds fell 50 basis points to 1.77%. 7 Also in the quarter, the Bank of Japan adopted negative interest rates in an effort to stave off deflation that has plagued the country since the 1990s. In China, The People s Bank of China announced cuts to the amount of deposits banks must hold as reserves, in an effort to spur growth. And in Europe, Mario Draghi has kept his foot on the monetary easing pedal in an effort to spur inflation which has been slowed by lower commodity prices and a slowing Chinese economy. The ECB lowered its benchmark interest rate, increased the amount of monthly bond purchases, and expanded the types of assets available for purchase which will now include corporate bonds for the first time. Page 1 of 6
Infrastructure securities outperform in the quarter The Dow Jones Brookfield Global Infrastructure Index outperformed both the MSCI World and S&P 500 Indexes in the first quarter, returning 8.2%. The Americas region gained 11.4%, followed by Europe (+3.9%) and Asia Pacific (+2.5%). Seven of eight sectors were positive during the quarter including Oil & Gas Storage & Transportation (11.2%), Electricity Transmission & Distribution (9.7%), Airports (6.5%), Toll Roads (5.5%), Diversified (4.0%), Water (3.4%) and Communications (2.7%); while Ports (-0.8%) were negative. The Alerian MLP Index had a total return of -4.2% during the quarter. Outlook Overall the portfolio has continued to benefit from a more diversified composition across all sub-sectors within the infrastructure universe. In our view, the oil market is on its way to reaching a near-balanced state at some point in the near future. Within energy infrastructure, we see tremendous upside potential given the current pricing environment. Under our thesis, we do not need to see the price of oil increase materially, but we need stability from today s extreme market conditions before risks are abated. We are mindful of choosing the correct time to exploit market dislocations, with a current focus in the U.S. on names with limited needs to access the capital markets and those with strong balance sheets. We are mindful of the elevated valuations across the Utilities sector as a whole. However, we are focused on firms with company-specific catalysts. We also maintain our positive outlook on U.S. Communication tower companies that will benefit as wireless carriers continue to invest in their networks over the long term. While economic data show some signs of moderate improvement in the U.S. industrial economy, we have not yet seen improvement in carloads that have convinced us to add exposure to the Rail sector. We continue to monitor the data closely. In Europe, we see the ECB s continued monetary easing measures, particularly its new corporate bond buying program, as a tailwind for infrastructure. While traffic in the region remains strong, we are monitoring trends in the aftermath of Brussels terrorist attack. We view our Toll Road and Airport holdings in the region as solid long-term assets, but we are monitoring the short-term effects events like this can have on security prices. We remain cautious on the economic situation in China, and are positioned in sectors likely to be less affected by slowing economic conditions. We are overweight Gas Utilities, where there is a structural tailwind for increasing gas demand. We are cautious on the Australian economy in light of the decline in commodity prices; however, fundamentals for infrastructure assets remain solid, at least for now. Within Latin America we prefer exposure to Mexico. We feel airport infrastructure has compelling secular growth trends as airlines increase their fleets and more of the domestic population uses airlines as a mode of transportation. In closing, we see the current environment as accommodative to listed infrastructure. The asset class has historically performed well during periods of heightened volatility, and the first quarter of 2016 was indicative of that trend. It also tends to perform well when interest rates rise gradually, which we think will happen. We feel the stable cash flow profile of these companies that provide essential services to the global economy is particularly attractive given the current, uncertain environment. Page 2 of 6
ASSETS BY COUNTRY 8 Region Index United States 50.7 50.1 Canada 10.1 9.7 United Kingdom 7.8 11.6 France 5.5 3.7 Spain 5.4 5.8 Italy 4.8 4.2 Australia 4.7 5.4 Hong Kong 2.5 2.8 China 1.7 1.9 Japan 1.6 1.7 Switzerland 1.5 0.5 Other 2.4 2.6 Cash 1.3 0.0 Total 100.0 100.0 ASSETS BY SECTOR 8 Region Index Electricity Transmission & Distribution 16.0 23.4 Long-Haul Pipelines 15.5 17.3 Communications 14.0 12.7 Master Limited Partnerships (MLPs) 13.7 12.5 Toll Roads 10.9 8.3 Gas Utilities 9.0 8.0 Water 5.9 6.3 Airports 5.8 5.5 Midstream Pipelines 4.3 3.3 Electric Utilities & Generation 2.0 0.0 Rail 0.9 0.0 Ports 0.7 1.3 Diversified 0.0 1.4 Cash 1.3 0.0 Total 100.0 100.0 10% 5% 0% -5% -10% 10% 5% 0% -5% -10% Toll Roads TOP RELATIVE COUNTRY POSITIONS 9 France Switzerland Australia United Kingdom TOP RELATIVE SECTOR POSITIONS 9 Electric Utilities & Generation Pipelines Electricity Transmission & Distribution TOP 10 HOLDINGS Name American Tower Corp Communications United States 6.5% PG&E Corp. Electricity Transmission & Distribution United States 5.2% Enterprise Products Partners MLP United States 4.8% National Grid Electricity Transmission & Distribution United Kingdom 4.6% Transurban Group Toll Roads Australia 4.0% Crown Castle International Corp. Communications United States 3.5% Transcanada Corp. Long-Haul Pipelines Canada 3.1% Eversource Energy Electricity Transmission & Distribution United States 3.1% Energy Transfer Partners LP MLP United States 2.8% Snam SpA Long-Haul Pipelines Italy 2.7% The top ten holdings will vary over time. There is no guarantee that the Fund currently holds any of the securities listed. The information above is based on the total assets of the Fund. The holdings listed should not be considered recommendations to purchase or sell a particular security. Page 3 of 6
USD SHARE CLASS QUARTERLY PERFORMANCE BY SECTOR 10 Gas Utilities 55.6 85.6 Long-Haul Pipelines -90.4 186.0 QUARTERLY PERFORMANCE BY COUNTRY 10 Australia 18.7 51.2 United States -47.0 192.7 QUARTERLY PERFORMANCE BY SECURITY 10 Securities Security Name to Relative Performance Performance NiSource Inc. Gas Utilities United States 2.4 27.5 50.9 Columbia Pipeline Group, Inc. Gas Utilities United States 1.4 25.6 50.9 Energy Transfer Equity, L.P. MLP United States 0.4 22.0-33.2 Securities Security Name Relative Performance Performance Groupe Eurotunnel SA Toll Roads France 3.0-45.2-55.8 Spectra Energy Corp MLP United States 0.0-44.1 0.0 Kinder Morgan, Inc. Long-Haul Pipelines United States 1.4-43.6 30.3 Page 4 of 6
EUR SHARE CLASS QUARTERLY PERFORMANCE BY SECTOR 10 Gas Utilities 53.5 85.6 Long-Haul Pipelines -86.0 186.0 QUARTERLY PERFORMANCE BY COUNTRY 10 Australia 17.6 51.2 United States -44.0-61.9 QUARTERLY PERFORMANCE BY SECURITY 10 Securities Security Name to Relative Performance Performance NiSource Inc. Gas Utilities United States 2.4 26.4 50.9 Columbia Pipeline Group, Inc. Gas Utilities United States 1.4 25.0 50.9 Energy Transfer Equity, L.P. MLP United States 0.4 20.9-33.2 Securities Security Name Relative Performance Performance Groupe Eurotunnel SA Toll Roads France 3.0-44.1-55.8 Spectra Energy Corp MLP United States 0.0-42.3 0.0 Kinder Morgan, Inc. Long-Haul Pipelines United States 1.4-41.4 30.3 IMPORTANT DISCLOSURES A fund s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling +1 (855) 777-8001 or visiting www.brookfieldim.com. Please read the prospectus carefully before investing. investing in the Fund involves risk. Principal loss is possible. Infrastructure companies may be subject to a variety of factors that may adversely affect their business, including high interest costs, high leverage, regulation costs, economic slowdown, surplus capacity, increased competition, lack of fuel availability and energy conversation policies. The Fund invests in small and mid-cap companies, which involve additional risks such as limited liquidity and greater volatility. The Fund invests in foreign securities which involve greater volatility and political, economic and currency risks and differences in accounting methods. Investing in emerging markets may entail special risks relating to potential economic, political or social instability and the risks of nationalization, confiscation or the imposition of restrictions on foreign investment. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. Some securities held may be difficult to sell, particularly during times of market turmoil. If the Fund is forced to sell an illiquid asset to meet redemption, it may be forced to sell at a loss. Investing in MLPs involves additional risks as compared to the risks of Page 5 of 6
investing in common stock, including risks related to cash flow, dilution and voting rights. The Fund s investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase volatility. Energy infrastructure companies are subject to risks specific to the industry such as fluctuations in commodity prices, reduced volumes of natural gas or other energy commodities, environmental hazards, changes in the macroeconomic or the regulatory environment or extreme weather. MLPs may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling. Additional management fees and other expenses are associated with investing in MLPs. Additionally, investing in MLPs involves material income tax risks and certain other risks. Actual results, performance or events may be affected by, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) changes in laws and regulations and (5) changes in the policies of governments and/or regulatory authorities. Investing in MLPs may generate unrelated business taxable income (UBTI) for taxexempt investors both during the holding period and at time of sale. The risk of owning an ETF generally reflects the risks of owning the underlying securities the ETF holds. An Exchange Traded Note (ETN) may be influenced by time to maturity, level of supply & demand for the ETN, volatility and lack of liquidity in the underlying securities markets, changes in the applicable interest rates, changes in the issuer s credit rating and economic, legal, political or geographic events. Using derivatives exposes the Fund to additional risks, may increase the volatility of the Fund s net asset value and may not provide the result intended. Since the Fund will invest more than 25% of its total assets in securities in the infrastructure industry, the Fund may be subject to greater volatility than a fund that is more broadly diversified. The value of the Fund s investments in an MLP will depend largely on the MLP s treatment as a partnership for U.S. federal income tax purposes. If the MLP is deemed to be a corporation, then its income would be subject to federal taxation, reducing the amount of cash available for distribution to the Fund which could result in a reduction of the Fund s value. The state of the origin of the Company is Ireland. This document may only be distributed in or from Switzerland to qualified investors within the meaning of Art. 10 Para. 3, 3bis and 3ter CISA. The Swiss Representative in Switzerland is ACOLIN Fund Services AG, Stadelhoferstrasse 18, CH-8001 Zurich, whilst the Paying Agent is Aquila & Co. AG, Bahnhofstrasse 28a, CH-8001 Zurich. The basic documents of the Company as well as the annual and semi-annual report may be obtained free of charge at the registered office of the Swiss Representative. 1. Please refer to the Fund s prospectus, supplementary prospectus and Key Investor Information Document (KIID) available at www.brookfieldim.com for a discussion of any charges that may be applied to an investment in the Fund. 2. As of December 31, 2015. Brookfield Investment Management Inc., the Fund s investment advisor, has voluntarily agreed to waive all or a portion of its management fees and/or reimburse certain expenses of the Fund to the extent necessary to maintain the Fund s total expense ratio (excluding brokerage commissions and other transactional expenses, interests, taxes and extraordinary expenses, such as litigation; and other expenses not incurred in the ordinary course of the Fund s business) at no more than 1.15% of the Fund s share classes. This fee waiver and expense reimbursement arrangement is voluntary which the Fund s investment advisor may terminate in its sole discretion at any time. 3. The Dow Jones Brookfield Global Infrastructure Composite Index is calculated and maintained by S&P Dow Jones Indices and comprises of infrastructure companies with at least 70% of its annual cash flows derived from owning and operating infrastructure assets, including Master Limited Partnerships. The Index was created on July 1, 2008. The Index is unmanaged and, unlike the Fund, is not affected by cash flows or trading and other expenses. It is not possible to invest directly in an index. Index performance is shown for illustrative purposes only and does not predict or depict the performance of the Fund. 4. As measured by the MSCI World Index, a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. 5. The S&P 500 Total Return Index is the total return version of S&P 500 Index. Dividends are reinvested on a daily basis and the base date for the index is January 1, 1988. All regular cash dividends are assumed reinvested in the S&P 500 Index on the ex-date. Special cash dividends trigger a price adjustment in the price return index. 6. The Shanghai Stock Exchange Composite Index is a capitalization-weighted index. The index tracks the daily price performance of all A-shares and B-shares listed on the Shanghai Stock Exchange. 7. The U.S. 10-Year Treasury Note is a debt obligation issued by the United States government that matures in 10 years and pays interest at a fixed rate once every six months and pays the face value to the holder at maturity. 8. and country allocations are expressed as a percentage of total assets and will vary over time. Index weights are based on Dow Jones Brookfield Global Infrastructure Composite Index. 9. Calculated by Brookfield Investment Management Inc. using S&P Dow Jones Brookfield Index data. Active weights are expressed relative to the Dow Jones Brookfield Global Infrastructure Composite Index. 10. Calculated by Brookfield Investment Management Inc. using FactSet. refers to the change in the Fund s value (excluding cash) over the period. refers to the difference between the change in Fund value (excluding cash) relative to the change in the Dow Jones Brookfield Global Infrastructure Composite Index value over the period. Attribution is expressed in local currency. A basis point is a unit that is equal to 1/100 of 1%, and is used to denote the change in a financial instrument. Cash flows refer to the amount of cash generated and used by a company over a given period. USD refers to U.S. Dollar. The quoted benchmarks within this report do not reflect deductions for fees, expenses or taxes. These benchmarks are unmanaged and cannot be purchased directly by investors. Benchmark performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. There may be material factors relevant to any such comparison such as differences in the volatility, and regulatory and legal restrictions between the indices shown and the Fund. Page 6 of 6