April 2020 Commentary - Diversified Real Assets Securities Strategy - MARKET REVIEW

April 2020 Commentary – Diversified Real Assets Securities Strategy

MARKET REVIEW
Markets rebounded in April following the carnage in February and March. The MSCI World Index rose
10.98%. By region, North America, Asia Pacific and Europe rose 13.12%, 7.27% and 6.06%, respectively.
In the U.S., the S&P 500 Index gained 12.82%. Market sentiment appeared to rebound on an improving
outlook on new COVID-19 infection rates and the prospect of some economies re-opening.

Governments continued to announce stimulus measures to combat the global economic slowdown. On
April 9, the U.S. Federal Reserve announced it took additional action to provide $2.3 trillion in loans to help
prop up the ailing economy. Fed chair Jerome Powell also indicated that interest rates would remain near
zero for the foreseeable future and that the central bank’s two bond-buying programs would commence
soon. In Europe, the European Central Bank expanded its quantitative easing program of bond purchases.
However, subsequent to month end, a German court ruled the ECB’s program did not respect the “principle
of proportionality” and threatened to block future ECB purchases of German bonds if the bank could not
justify the validity of its policy responses.

April was a historic month in commodity markets, when the price of U.S. oil briefly traded in negative
territory, with front-month West Texas Intermediate Crude Oil (WTI) futures contracts trading as low as
negative $37.63 per barrel. Prices turned negative as demand dried up and storage capacity diminished
amid a flood of supply.

Within fixed income markets, the yield on 10-Year U.S. Treasuries was little changed in the month, down
three basis points to 0.64% as of April 30, 2020.

Real Estate Equities
The FTSE EPRA Nareit Developed Index returned 7.12% in April. By region, North America, Asia Pacific
and Europe returned 8.32%, 7.08% and 3.51%, respectively. Nearly all U.S. property types posting gains
in the month. Retail led (+14.80%), followed by Diversified (+12.73%), Hotels (+10.97%), Mixed (+10.96%),
Healthcare (+10.13%), Residential (+8.62%), Industrial (+7.90%) and Office (+7.33%). Only Self Storage
(−6.72%) declined during the month.1

Infrastructure Equities
The Dow Jones Brookfield Global Infrastructure and FTSE Global Core Infrastructure 50/50 Indexes
returned 8.33% and 8.09%, respectively in April. By region within the Dow Jones Brookfield Global
Infrastructure Index, the Americas returned 8.43%, while Asia Pacific and Europe returned 8.12% and
3.67%, respectively. All sectors within the index had positive returns. The more-economically sensitive
sectors rallied the most during the month. Toll Roads were the leader (+15.05%), followed by Ports
(+14.87%), Airports (+11.77%), Oil & Gas Transportation & Storage (+9.85%), Communications (+9.23%),
Diversified (+1.46%), Water (+1.26%) and Electricity Transmission & Distribution (+1.14%).

The Alerian MLP and Alerian Midstream Energy Indexes gained 49.62% and 29.46%, respectively.

1
    Sector returns represented by the U.S. portion of the FTSE EPRA/Nareit Developed North America Index

Real Asset Debt
The ICE BofA Global Corporate and ICE BofA Global High Yield Indexes rose 4.81% and 4.54%,
respectively, in April.

ASSET CLASS OUTLOOK
Real Estate Equities
As the COVID-19 pandemic has proven, economic, market and real estate cycles can turn quickly. We are
steadfast in our belief that paying an appropriate price for assets is key, and that having a value bias helps
to preserve capital during market corrections. This in turn enhances the ability to take advantage of
opportunities when markets turn higher.

We continue to focus on capitalizing on near-term market inefficiencies in order to generate attractive long-
term returns. For the near term, we have repositioned our portfolio to provide more defensive characteristics
to preserve capital, moving up in quality wherever we can do so at a reasonable valuation. We are adding
selectively, however, where we see long-term values emerging due to the sell-off.

We have also increased our focus on liquidity, as we recognize that news flow is constant and the market
environment is changing rapidly and continuously. Although we are positioning the portfolio in a more
defensive manner currently, we believe that these high quality companies with strong balance sheets will
recover from this downturn the fastest, as they will be better positioned to weather the storm. They are also
best positioned to take advantage of opportunities which arise from this dislocation.

Infrastructure Equities
We favor a defensive position to enable capital preservation in this environment of extreme risk and
volatility. We remain focused on stock-specific, high-conviction ideas, and favor exposure to companies
with strong balance sheets and access to liquidity. That said, we are firmly keeping an eye on emerging
opportunities, particularly across the airports space, as well as select companies within energy
infrastructure.

We continue to favor utilities given their innate defensiveness. We are seeing valuation dispersions, as
fully-regulated utilities have outperformed those with non-regulated exposure. In our view, many of these
companies are well-capitalized and several have exposure to low-cost renewables generation.

Globally, utilities that have exposure to renewables development & generation continues to be one of our
highest conviction ideas across our portfolios. The majority of these positions provided favorable downside
protection during the COVID-19 sell-off, while investors’ growing emphasis on ESG has remained a
favorable tailwind. Companies with large development activities have been insulated from disruption for the
most part, and we remain confident that they will be able to continue pursuing renewables opportunities
given the structural benefits and government-led initiatives. We favor companies that are competitively
positioned and have sufficient funding sources to mitigate the risk of an interruption in development activity
either via supply chain disruptions or a liquidity event.

Within transports, we prefer less-economically sensitive toll roads. There has been a deterioration in traffic
levels, but there is the potential for levels to bounce back quickly once travel restrictions are lifted. Airports
are facing challenging conditions, and unlike toll roads, traffic recovery may take some time. However, we
beginning to take advantage of discounted opportunities emerge among certain high-quality assets.

In the communications sector, we favor U.S. towers, due to their strong counterparties and business
models, which provide for a stable and growing cash flow base. The sector has been a rare beneficiary of
global containment measures, as data needs have increased, given remote working, online learning, and
streaming activities.

We acknowledge the challenges the energy infrastructure industry is facing. We prefer large-capitalization
companies with integrated asset footprints and well-capitalized balance sheets. We believe that, in some
cases, the market may have over-penalized certain companies, and certain opportunities may present
themselves.

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Real Asset Debt
Looking ahead, we do not envision a straight-line recovery by any means, and we anticipate a wave of
high-yield bankruptcies and restructurings. While we underwrite every investment with a focus on downside
risk, we currently have a heightened focus on stress testing and recovery values, as well as near-term
liquidity and maturity schedules. Our goal is to ensure our investments have the ability to make it through
a potentially deep recession without having to access capital markets. We are currently spending a lot of
our time reviewing dislocated opportunities within the investment-grade universe. We are also finding some
attractive valuations in higher-quality (BB-rated) non-investment-grade issuers.

OVERALL OUTLOOK
Looking ahead, we prefer a defensive bias given ongoing market dynamics. However, we are prepared to
quickly rotate risk exposures in anticipation of a sustained market recovery. In the context of a diversified
real assets portfolio, we favor increased exposure to the more senior parts of the capital structure via real
asset debt. We are conscious of near record-low interest rates, but also wide credit spreads. We prefer an
overall underweight to real asset equities and within equities we favor more defensive infrastructure
equities.

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Disclosures
©2020 Brookfield Public Securities Group LLC ("PSG" or "the Firm" ) is an SEC-registered investment
adviser and represents the Public Securities Group of Brookfield Asset Management Inc., providing global
listed real assets strategies including real estate equities, infrastructure equities, multi-strategy real asset
solutions and real asset debt. PSG manages separate accounts, registered funds and opportunistic
strategies for institutional and individual clients, including financial institutions, public and private pension
plans, insurance companies, endowments and foundations, sovereign wealth funds and high net worth
investors.
The foregoing information is provided by PSG. Although such information is believed to be reliable, it may
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use or interpretation by others of information contained on the site.
Performance data quoted represents past performance and is no guarantee of future results. Performance
quoted without sales charges would be reduced if the sales charges were applied. Investment return and
principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth
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A fund's investment objectives, risks, changes and expenses must be considered carefully before investing.
The prospectus contains this and other important information about the investment company, and it may
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Investing in the Fund involves risk. Principal loss is possible. The Fund will be closely linked to the real
estate market. Property values may fall due to increasing vacancies or declining rents resulting from
unanticipated economic, legal, cultural or technological developments. REITs are dependent upon
management skills and generally may not be diversified. REITs are subject to heavy cash flow dependency,
defaults by borrowers and self-liquidation. 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
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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, the Fund may be
forced to sell at a loss. 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 Real Estate industry, the Fund may be subject to greater volatility
than a fund that is more broadly diversified. Past performance is no guarantee of future results. An
investment in the Fund involves risk, including loss of principal. Investment return and the value of shares
will fluctuate. Returns are calculated by determining the percentage change in net asset value (NAV). The
returns do not reflect broker sales charges or commissions. NAV is total assets less total liabilities divided
by the number of shares outstanding. This material is presented only to provide information and is not
intended for trading purposes. Current performance may be lower or higher than the performance quoted.
The Fund invests in MLPs, which involves additional risks as compared to the risks of investing in common
stock, including risks related to cash flow, dilution and voting rights. 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
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provide legal, tax or investment advice or to avoid legal penalties that may be imposed under U.S. federal
tax laws. Investors should contact their own legal or tax advisors to learn more about the rules that may

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affect individual situations. Past performance is no guarantee of future results. An investment in the Fund
involves risk, including loss of principal. Investment return and the value of shares will fluctuate. Returns
are calculated by determining the percentage change in net asset value (NAV). The returns do not reflect
broker sales charges or commissions. NAV is total assets less total liabilities divided by the number of
shares outstanding. This material is presented only to provide information and is not intended for trading
purposes. Current performance may be lower or higher than the performance quoted. For information about
other share classes available, please consult the prospectus. Performance of Fund classes will differ.
Please see the prospectus for details. To obtain performance information current to the most recent month-
end, please call +1 (212) 549-8380. Brookfield Real Assets UCITS Fund is managed by Brookfield Public
Securities Group LLC.
Certain funds may invest assets in securities of issuers domiciled outside the United States, including
issuers from emerging markets. Foreign investing involves special risks, including foreign currency risk and
the possibility of substantial volatility due to adverse political, economic or other developments.
An investor should consider a fund's investment objectives, risks, charges and expenses carefully before
investing.

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For Institutional Use Only and may not be reproduced, shown, quoted to, or used with members of the
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Definitions

The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to
measure the equity market performance of developed markets.

The FTSE EPRA/Nareit Developed Index is a free-float adjusted, liquidity, size and revenue screened
index designed to track the performance of listed real estate companies and REITs worldwide.

The FTSE EPRA/NAREIT North America Index is designed to track the performance of listed real
estate companies and REITS in North American markets (US and Canada).

The FTSE Global Core Infrastructure 50/50 Index gives participants an industry-defined interpretation of
infrastructure and adjusts the exposure to certain infrastructure sub-sectors. The constituent weights are
adjusted as part of the semi-annual review according to three broad industry sectors - 50% Utilities, 30%
Transportation including capping of 7.5% for railroads/railways and a 20% mix of other sectors including
pipelines, satellites and telecommunication towers. Company weights within each group are adjusted in
proportion to their investable market capitalization

The Dow Jones Brookfield Global Infrastructure Index is calculated and maintained by S&P Dow Jones
Indices and comprises infrastructure companies with at least 70% of their annual cash flows derived from
the owning and operating infrastructure assets.

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The Alerian MLP Index is a composite of the 50 most prominent energy master limited partnerships
("MLPs") calculated by Standard & Poor's using a float-adjusted market-capitalization methodology. The
index is disseminated by the New York Stock Exchange real-time on a price return basis (NYSE: AMZ) and
on a total-return basis.

The S&P 500 Index is an equity index of 500 widely held, large-capitalization U.S. companies.

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.

The ICE BofA Global High Yield Index tracks the performance of below investment-grade, U.S. dollar-
denominated corporate bonds publicly issued in the U.S. domestic market, and includes issues with a credit
rating of BBB or below, as rated by Moody's and S&P.

The ICE BofA Global Corporate Index tracks the performance of investment- grade public debt issued in
the major domestic and eurobond markets, including global bonds.

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