The Case for Global Listed Infrastructure

PUB LIC S ECURIT IE S G ROUP i | 2019 | INFR A S TRUC TUR E

Most of us don’t notice the critical role infrastructure plays in our everyday lives, when in fact, the essential products and services it provides is all around us. For example, we transport energy from the well to end users through a vast network of pipelines. Global commerce depends on a massive transportation system of roads, railroads, marine ports and airports to transport goods around the world. Our cell phones won’t work without wireless towers, or the electricity used to charge batteries and transmit data. These are just a few examples of how infrastructure intersects with everyday life.

1

Although infrastructure is a relatively new asset class, we have watched the allocations of institutional and individual investors grow markedly over the past decade—from about $5 billion invested in 2005 to $100 billion at the end of September 2018. In part, we attribute this growth to the attractive historical return profiles of the asset class, which we highlight in the Appendix of this report. As shown in the Appendix and the exhibits of this reportii since inception, the Dow Jones Brookfield Global Infrastructure Composite Index (DJBC) since its July 14, 2008 inception has outperformed the MSCI World Index on the basis of annual cash

flow generation, income and capital appreciation and risk-adjusted returns. The DJBC has also generated higher returns when inflation rose unexpectedly over this time frame.

Inside we define this broadly diversified, $1 trillion investing universe and explore some of the favorable trends and secular growth drivers we see for the asset class. We also share some insights on asset valuations and our approach to portfolio construction, as specialized asset managers with a long history of managing infrastructure portfolios.

E X H I B I T 1 : G R O W T H O F A U M A L L O C AT E D T O G L O B A L I N F R A S T R U C T U R E S E C U R I T I E S

As of September 30, 2018. Source: eVestment Alliance LLC.

T A B L E O F C O N T E N T S

How We Define the Global Infrastructure Equity Universe 3

Positive Trends that Bode Well for the Asset class 4

How We Approach the Investment Process 6

Our Closing Perspective: Active Management Matters 7

Appendix: What History Tells Us About the Return Profiles of Infrastructure Equities 8

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20182017201620152014201320122011201020092008

THE CASE FOR GLOBAL LISTED INFRASTRUCTURE 2

The market capitalization of the global infrastructure equity universe exceeds $2 trillion on a free-float, market-capitalization-weighted basis. We divide this universe into four main sectors: Energy, Utilities, Transportation and Communications. Although these sectors are made up of very diverse industry groups and business models, they tend to share several fundamental characteristics:

■■ Monopolistic business models with high barriers to entry

■■ Steady demand for the essential goods and services they provide

■■ Pricing that is frequently linked to inflation

Below, we break down this diverse universe by geography, sector and industry group.

G L O B A L L I S T E D I N F R A S T R U C T U R E AT A G L A N C E THE GLOBAL UNIVERSE OF GLOBAL INFRASTRUCTURE EQUITIES IS BROADLY DIVERSIFIED BY GEOGRAPHY, SECTOR AND INDUSTRY GROUP

E X H I B I T 2 : B R O A D R E G I O N A L D I V E R S I F I C A T I O N E X H I B I T 3 : B R O A D S E C T O R D I V E R S I F I C A T I O N

As of December 31, 2018. Source: Brookfield Public Securities Group LLC.

As of December 31, 2018. Data represents the Dow Jones Brookfield Infrastructure Composite Index. Brookfield has no direct role in the day-to-day management of the Dow Jones Brookfield Global Infrastructure Index.

How We Define the Global Infrastructure Equity Universe

INFRASTRUCTURE EQUITIES—COMPANIES THAT OWN AND OPERATE INFRASTRUCTURE ASSETS—OFFER EXPOSURE TO THE SAME TYPES OF INVESTABLE ASSETS FOUND IN PRIVATE MARKETS. BUT THEY ALSO HAVE THE LIQUIDITY, TRANSPARENCY AND CORPORATE GOVERNANCE FOUND IN PUBLIC MARKETS.

UTILITIES32.5%

ENERGY INFRASTRUCTURE36.9%

COMMUNICATIONS& OTHER15.1%

TRANSPORTS15.4%

AUSTRALIA/N.Z.4.7%

U.K.5.9%

CANADA 14.6%

CONTINENTAL EUROPE16.6% LATIN

AMERICA1.1%

U.S.49.8%

ASIA7.4%

UTILITIES32.5%

ENERGY INFRASTRUCTURE36.9%

COMMUNICATIONS& OTHER15.1%

TRANSPORTS15.4%

AUSTRALIA/N.Z.4.7%

U.K.5.9%

CANADA 14.6%

CONTINENTAL EUROPE16.6% LATIN

AMERICA1.1%

U.S.49.8%

ASIA7.4%

TRANSPORTS(~90 COMPANIES) ■■ Airports■■ Toll Roads■■ Ports■■ Railroads

ENERGY INFRASTRUCTURE (~120 COMPANIES) ■■ Natural Gas ■■ Crude Oil & Refined Product Pipelines

■■ Liquid Natural Gas Export Storage

UTILITIES (~230 COMPANIES) ■■ Gas■■ Water ■■ Renewables/Electric Generation

■■ Electricity Transmission & Distribution

COMMUNICATIONS (~20 COMPANIES) ■■ Wireless Towers ■■ Broadcast Towers■■ Satellites ■■ Fiber/Wireline Networks

E X H I B I T 4 : A C R O S S S E C T I O N O F I N D U S T R Y G R O U P S

THE CASE FOR GLOBAL LISTED INFRASTRUCTURE 3

C R I T I C A L I N F R A S T R U C T U R E S P E N D I N G C O U L D A P P R O A C H $ 7 0 T R I L L I O N B Y 2 0 3 5

According to recent estimates, the amount of global infrastructure spending needed to support anticipated economic growth will amount to nearly $70 trillion through 2035.iii As detailed in Exhibit 5, this spending could reach about ~$4 trillion annually, spread broadly across industries supporting transportation, water, electrical and communications services. These spending trends can also be described as a “tale of two markets”: In developed markets, there is the dire need to replace

aging and obsolete assets, while emerging markets are tasked with building out essential new services to address shifting demographics, rising living standards and urbanization trends. Meanwhile, cash-constrained governments across the globe are seeking to raise capital by privatizing state-owned infrastructure assets, from toll roads to airports and marine ports. As these trends unfold, we believe that the demand for capital will undoubtedly rise to drive compelling opportunities for investors in the asset class.

E X H I B I T 5 : P R O J E C T E D A N N U A L I N F R A S T R U C T U R E S P E N D I N G N E E D S : 2 0 17-2 0 3 5 AVERAGE ANNUAL NEEDS, 2017-35 $ trillion, constant 2017 dollars

Note: Numbers may not sum due to rounding.

As of December 31, 2017. Source: IHS Global Insight, International Transport Forum National Statistics, McKinsey Global Institute.

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TotalTelecomWaterPowerAirportsPortsRailRoads

3.70.5

0.5

1.1

0.10.10.40.9

ANNUAL SPENDING % of GDP

AGREGATE SPENDING 2017-35 $ trillion

1.0

18.0

0.4

7.9

0.1

1.6

0.1

2.1

1.3

20.2

0.5

9.1

0.6

10.4

4.1

69.4

Positive Trends That May Bode Well for the Asset Class

T E C H N O L O G I C A L I N N O V A T I O N H A S B E E N D R I V I N G I N V E S T M E N T O P P O R T U N I T Y

Energy Advances in hydraulic fracturing (“fracking”) and horizontal drilling are largely behind the shale revolution, which has enabled the U.S. to significantly increase its production of oil and natural gas, particularly from tight oil and gas formations. This production growth has spurred the large buildout we have seen in energy infrastructure.

Renewable Power Technological developments over the past decade, related to stronger and lighter materials as well as turbine efficiency, continue to reduce the costs of newer renewable power generation technologies. This trend has served to enhance the competitiveness of renewable resources versus legacy coal, gas and nuclear generation.

Communications Recent estimates by Cisco Systemsiv suggests that data traffic will grow at a compound annual growth rate of more than 24% over the next five years,v continuing the rapid pace of growth that we have seen over the past decade.

THE CASE FOR GLOBAL LISTED INFRASTRUCTURE 4

W E B E L I E V E T H A T G L O B A L I N F R A S T R U C T U R E V A L U A T I O N S A R E V E R Y A T T R A C T I V E , R E L A T I V E T O G L O B A L E Q U I T I E S

While the fundamental factors in the previous section are all important considerations, our investment process is primarily focused on the relationship between company share prices to their asset valuations. One commonly used metric used to compare individual company valuations is the ratio of enterprise value to EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). We can also use this metric more broadly to evaluate the relative valuations of publicly traded indexes. Below we compare the Dow Jones Global Infrastructure Composite Index and the broader S&P 500 Index on this basis. Notably, as of December 31, 2018, the spread between the ratio of infrastructure EV/EBITDA relative to that the S&P 500 stands at 2.0 standard deviations below its long-term average.

W H Y W E U S E E V/ E B I T D A R AT H E R T H A N P/ E …

We believe that comparing companies on the basis of EV/EBITDA better accounts for company-to-company differences in i) tax/depreciation regimes across our global asset class, and ii) the varying degrees of financial leverage employed across sectors. Note that, similar to the price-to-earnings ratio,vi the lower the EV/EBITDA measure, the less expensive the price of the equity is, relative to its valuation. As such, we believe the EV/EBITDA comparison in Exhibit 6 below points to the relative attractiveness of global infrastructure equities, versus broad-based global equities.

E X H I B I T 6 : E V / E B I T D A : I N F R A S T R U C T U R E L E S S S & P 5 0 0

As of December 31, 2018. Source: Brookfield Public Securities Group LLC research and estimates; FactSet, S&P Dow Jones Indexes Median EV/EBITDA based on forward 12-month analysis derived using the constituents of Brookfield Investment Management’s Global Infrastructure Securities Universe. EV/EBITDA multiple is a financial ratio that measures the total value of a company in relation to its operating performance. EBITDA is the company’s earnings before interest, taxes, depreciation and amortization. Brookfield Public Securities Group LLC cannot warrant that EV/EBITDA or yield levels will meet historical percentages shown above. Standard Deviation measures the degree to which an investment’s return varies from its mean return. Brookfield has no direct role in the day-to-day management of the Dow Jones Brookfield Global Infrastructure Index.

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BITD

A Sp

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-1.0

-1.5

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Dow Jones Brookfield Global Infrastructure Composite IndexAverage +/- 1 Std. Dev.

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DEC2014

DEC2015

DEC2016

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DEC2018

LessExpensive

THE CASE FOR GLOBAL LISTED INFRASTRUCTURE 5

B A L A N C E S H E E T S A R E S T R O N G E R T H A N T H E Y ’ V E B E E N I N A D E C A D E

Our research shows that the balance sheets of infrastructure companies have been steadily improving since the July 2008 inception of the Dow Jones Brookfield Global Infrastructure Composite Index. As shown in Exhibit 7, the ratio of total debt-to-capitalization is slightly below the inception-to-date average and significantly lower than

it was in the depths of the global financial crisis. Exhibit 8 shows that companies have been refinancing their debt at lower rates, which has resulted in the lowest interest expense over the same time frame. As a result, we believe these companies are well positioned to finance long-term growth opportunities across the global infrastructure universe.

E X H I B I T 7 : T O TA L D E B T T O M A R K E T C A P I TA L I Z AT I O N (%) E X H I B I T 8 : I N T E R E S T E X P E N S E : (% O F E B I T * )

44

46

48

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56

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20182017201620152014201320122011201020092008

AVERAGE53.8%

Perc

ent

2.2

2.7

3.2

3.7

4.2

4.7

5.2

5.7

20182017201620152014201320122011201020092008

AVERAGE4.8%

Perc

ent

As of September 30, 2018 Source: FactSet. Data reflect historical characteristics of companies comprising the Dow Jones Brookfield Global Infrastructure Composite Index. Brookfield has no direct day-to-day role in the management of the Dow Jones Brookfield Global Infrastructure Index. See index definitions at the end of this report. * EBIT is earnings before interest and taxes. Past performance does not guarantee future results.

Source: Brookfield Public Securities Group LLC.

Our investment team conducts in-depth, bottom-up fundamental analysis to evaluate each company based on factors such as its equity valuation, management quality and balance sheet strength. Bottom up security

selection is at the heart of our investment process. As highlighted in Exhibit 9 below, we draw from a diverse opportunity set, composed of four sectors each with distinct fundamental drivers.

How We Approach the Investment Process

E X H I B I T 9 : O U R A S S E S S M E N T O F F U N D A M E N T A L G R O W T H D R I V E R S B Y S E C T O R T H E D R I V E R S O F G R O W T H F O R E A C H I N F R A S T R U C T U R E S E C T O R A R E F U N D A M E N TA L LY D I S T I N C T.

UTILITIESENERGY INFRASTRUCTURE TRANSPORTATION COMMUNICATIONS

■■ Gas ■■ Water ■■ Renewables/Electric Generation ■■ Electricity Transmission &

Distribution

■■ Natural Gas, Crude Oil & Refined Products Pipelines

■■ Liquid Natural Gas (“LNG”) Exports ■■ Storage

■■ Airports ■■ Toll Roads ■■ Ports ■■ Railroads

■■ Wireless Towers■■ Broadcast Towers■■ Satellites■■ Fiber/Wireline Networks

WHERE WE SEE OPPORTUNITIES FOR GROWTH

■■ Declining costs of renewable power generation

■■ Adaptation of the transmission & distribution network for greater reliability and growth in renewable power loads

■■ U.S. water infrastructure in dire need of replacement

■■ Massive oil and natural gas volume growth requiring new pipelines

■■ Expanding oil exports in the U.S.■■ Expanding global demand for LNG■■ Widespread conversions from coal

to natural gas■■ Increasing petrochemical

manufacturing in the U.S., as natural gas liquids emerge as a durable low-cost feedstock.

■■ Toll road infrastructure investment in U.S. through public/private partnerships

■■ Increasing air travel in emerging markets (in some cases cheaper than bus travel)

■■ Exponential increase in data consumption and the need for cell tower infrastructure construction/densification

THE CASE FOR GLOBAL LISTED INFRASTRUCTURE 6

2009 2010 2011 2012 2013 2014 2015 2016 2017

2018GAP BETWEEN TOP & BOTTOM PERFORMER 81 40 47 32 35 30 46 39 48 34

MLPs 76.41 37.18 23.70 33.33 39.32 30.11 13.87 31.54 34.97 5.86Communications 58.61 35.85 19.91 30.20 27.28 28.98 1.19 21.93 24.93 5.03Ports 35.70 26.85 19.13 13.56 25.56 22.79 -0.45 18.31 17.05 3.11Diversified 31.72 23.32 13.88 13.49 22.89 20.63 -3.66 16.28 12.11 -8.78Oil & Gas Storage & Transportation 30.13 16.97 11.49 10.93 18.92 18.60 -4.38 8.00 11.80 -9.07

Rail 30.11 10.90 10.49 9.35 15.32 17.40 -4.84 5.58 7.57 -9.57Airports 22.72 9.85 10.16 8.06 13.21 16.05 -5.56 5.19 1.53 -10.67Toll Roads 21.82 5.46 9.34 4.80 11.07 13.66 -23.08 3.09 -1.80 -11.51Utilities 11.91 1.41 -4.39 4.59 7.98 10.19 -29.65 -0.57 -5.72 -14.16Electricity Transmission & Distribution 7.36 1.40 -8.81 4.31 5.36 4.80 -31.49 -7.29 -6.52 -14.53

Water -4.31 -3.22 -23.69 1.29 4.59 0.19 -32.59 -7.67 -12.62 -28.11

As we construct portfolios, we are also mindful that infrastructure sectors are subject to very different

macroeconomic sensitivities. Exhibit 10 highlights these relative sensitivities on a sector-by-sector basis.

Our case for global infrastructure is centered on four core categories of companies that provide infrastructure products and services: transportation, energy infrastructure, utilities, and communications. As shown in this report, these groups are composed of diverse industry groups, each with distinct fundamental

characteristics and macroeconomic sensitivities (e.g., economic activity and changes in interest rates and inflation). In our view, these factors underlie the wide dispersion observed in the historical index returns of infrastructure sectors, as highlighted in Exhibit 11 below.

Our Closing Perspective: Active Management Matters

As of December 31, 2018. Source: Brookfield Public Securities Group LLC. For illustrative purposes only. Investing involves risk. Risks are subject to change without notice. Ratings are the opinions of Brookfield Investment Management and subject to change without notice. Criteria are ranked for each sector on a relative basis, based on our assessment of the historical return profiles we have observed among infrastructure sectors of the Dow Jones Brookfield Global Infrastructure Composite Index and various GICS sectors of the S&P 500 Index.

As of December 31, 2018. Gap between the highest and lowest performance does not necessarily indicate positive performance during the time period. Source: Bloomberg. Performance as measured by the indices including: Ports, Airports, Water, Electricity Transmission & Distribution, Communications, Diversified, Toll Roads, and Oil & Gas Storage & Transportation reflect the sector indices of the Dow Jones Brookfield Global Infrastructure Index. MLPs reflect the Dow Jones Brookfield Infrastructure MLP Index. Rail reflects the S&P 500 Rail Index. Utilities reflects the S&P 500 Utilities Index. Brookfield has no direct day-to-day role in the management of the Dow Jones Brookfield Global Infrastructure Index. See disclosures for additional information. Past performance does not guarantee future results.

INFRASTRUCTURE EQUITIES HAVE VARYING DEGREES OF SENSITIVITY TO MACROECONOMIC FACTORS.

INDUSTRY GROUPECONOMIC SENSITIVITY

INTEREST RATE SENSITIVITY

INFLATION SENSITIVITY

Airports STRONG MEDIUM STRONG

Communications MEDIUM MEDIUM STRONG

Electricity Transmission and Distribution LIMITED STRONG MEDIUM

Energy Infrastructure MEDIUM MEDIUM MEDIUM

Ports STRONG LIMITED MEDIUM

Toll Roads STRONG MEDIUM STRONG

Rails STRONG LIMITED STRONG

MLPs MEDIUM MEDIUM MEDIUM

E X H I B I T 10 : M A C R O E CO N O M I C S E N S I T I V I T Y B Y S E C T O R

E X H I B I T 11 : H I S T O R I C A L LY W I D E D I S P E R S I O N I N A N N U A L S E C T O R R E T U R N S (%) A N N UA L R E T U R N S B Y S E C TO R S ( LO C A L C U R R E N C Y ) .

TOP

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BOTT

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THE CASE FOR GLOBAL LISTED INFRASTRUCTURE 7

In our view, the periodic shifts observed in market leadership—marked by wide gaps between the top-and bottom-performing component of each sector—speak to the importance of choosing an actively managed strategy spread across sectors and geographies. Further supporting the case for active securities selection is the wide dispersion in the returns of companies underlying each sector.

In our view, the current market offers an attractive entry point for investors, based on infrastructure valuations relative to global equities and the favorable industry trends outlined in this report. While some of the companies in these sectors are also found in broad-market equity indexes, overall there is very little overlap—with less than 3% of the MSCI World

M O R E C O N S I S T E N T A N D H I G H E R C A S H F L O W G E N E R A T I O N V E R S U S G L O B A L E Q U I T I E S

Historical index returns point to steady streams of cash flow generated by infrastructure equities, which, since the 2008 inception of the Dow Jones Brookfield Global Infrastructure Composite Index, have outpaced global equities. We believe the stability of these cash flows is structural, as infrastructure characterized by the presence of regulation or long-lived contracts that reduce competition, and in most cases, provide investors with a high degree of transparency throughout the asset's life.

Exhibit 12 compares the historical annual growth of EBITDA (Earnings Before Interest, Taxes Depreciation and Amortization—a commonly used measure of cash-flow-generation capacity) for the Dow Jones Brookfield Global Infrastructure Composite Index versus the MSCI World Index.

Index and S&P 500 Index market capitalizations. Thus, even though the correlations of global infrastructure and global equities are generally high, an allocation to infrastructure investors may serve to diversify the holdings of a traditional portfolio allocated to broad equity and fixed-income securities.

The Appendix that follows summarizes the historical return profiles of infrastructure equities, relative to more broad-based global equities. This analysis over the life of the Dow Jones Brookfield Infrastructure Composite Index shows that infrastructure equities have historically provided more consistent and higher cash flows than more broad-based global equities, with greater income returns, greater capital appreciation and more favorable risk-adjusted returns.vii

Infrastructure equities have a long history of providing attractive investment characteristics. Since the 2008 inception of the Dow Jones Brookfield Global Infrastructure Composite Index, global infrastructure has outperformed global equities on the following dimensions: more consistent and higher cash flow generation, high income returns and capital appreciation, positive sensitivity to inflation, resiliency in periods of rising interest rates and better risk-adjusted returns.

Appendix: What History Tells Us About the Return Profiles of Infrastructure Equities

E X H I B I T 1 2 : A N N U A L E B I T D A G R O W T H G L O B A L I N F R A S T R U C T U R E E Q U I T I E S V S . G L O B A L E Q U I T I E S

-4%-2%0%2%4%6%8%

10%12%14%16%18%

201720162015201420132012201120102009

7.33AVERAGE

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52.2

0

9.08

15.51

8.56

6.21

5.63

4.57

7.56

4.52

8.06

7.21

7.80

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6.45

4.59

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8.27

Global Infrastructure Global Equities

Past performance is no guarantee of future results. Data includes full-year periods beginning in 2009.

As of December 31, 2017. Brookfield Public Securities Group LLC research and estimates; FactSet; S&P Dow Jones Indices; Merrill Lynch Global Quantitative Strategy; MSCI; IBES Estimates Thomson Reuters; Worldscope. Global Infrastructure and Global Equities represent the Dow Jones Brookfield Global Infrastructure Composite Index and MSCI World Index, respectively. Global Infrastructure EBITDA growth is derived using the constituents of the Dow Jones Brookfield Global Infrastructure Composite Index. Brookfield Investment Management cannot warrant that cash flow levels will meet historical percentages shown.

Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. The quoted indexes in this chart do not reflect deductions for fees, expenses or taxes. These indexes are unmanaged and cannot be purchased directly by investors. There may be material factors relevant to any such comparison such as differences in the volatility, and regulatory and legal restrictions between the indexes shown and an actively managed investment strategy. See the disclosures for index definitions. Investing in global listed infrastructure involves different risks, including the loss of principal. The tax treatment of returns of the asset classes listed above may differ given different tax treatment of income versus capital gain and other factors, such as the capital structure of the investment. Past performance does not guarantee future results. Index performance is not indicative of fund performance. To obtain fund performance call 1-855-777-8001 or visit our website, www.Brookfield.com.

THE CASE FOR GLOBAL LISTED INFRASTRUCTURE 8

H I G H E R I N C O M E A N D C A P I T A L A P P R E C I A T I O N T H A N G L O B A L E Q U I T I E S

F A V O R A B L E R I S K - A D J U S T E D R E T U R N S

Exhibit 13 shows the capital appreciation realized by infrastructure equities since the inception of the Dow Jones Global Infrastructure Composite Index, which has significantly exceeded that of global equities. Additionally, the income return has also exceeded that of global equities, as fully-built infrastructure assets experience the bulk of capital investment early in their lives and generate substantial free cash flow once they come into service.

We attribute the historically favorable risk/return characteristics of global infrastructure, versus global equities, to the long history of attractive current income characteristics found among infrastructure companies. Exhibit 14 compares the risk/return characteristics of global listed infrastructure to those of equities and bonds since the 2008 inception of the Dow Jones Brookfield Global Infrastructure Composite Index. Notably, listed infrastructure has generated higher total returns than global equities, with lower volatility, as measured by standard deviation. As a result, the Sharpe Ratio of global infrastructure was meaningfully higher than that of global equities.

E X H I B I T 1 3 : H I G H E R I N C O M E A N D C A P I T A L A P P R E C I A T I O N T H A N G L O B A L E Q U I T I E S

E X H I B I T 1 4 : 1 0 - Y E A R R I S K - R E W A R D

As of December 31, 2018. Source: Bloomberg for the period from September 30, 2008 through December 31, 2018. Global Equities represented by the MSCI World Index. Global infrastructure Dow Jones Brookfield Global Infrastructure Composite Index. Brookfield has no direct role in the day-to-day management of the Dow Jones Brookfield Global Infrastructure Index or the Dow Jones Brookfield Global Infrastructure Composite Index.

Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. The quoted indexes in this chart do not reflect deductions for fees, expenses or taxes. These indexes are unmanaged and cannot be purchased directly by investors. There may be material factors relevant to any such comparison such as differences in the volatility, and regulatory and legal restrictions between the indexes shown and an actively managed investment strategy. See the disclosures for index definitions. Investing in global listed infrastructure involves different risks, including the loss of principal. The tax treatment of returns of the asset classes listed above may differ given different tax treatment of income versus capital gain and other factors, such as the capital structure of the investment. Past performance does not guarantee future results. Index performance is not indicative of fund performance. To obtain fund performance call 1-855-777-8001 or visit our website, www.Brookfield.com.

As of December 31, 2018. Source: Bloomberg from September 30, 2008 - December 31, 2018. Global Equities represented by the MSCI World Index. Global fixed income represented by the Bloomberg Barclays Global Aggregate Index. Global infrastructure represented by the Dow Jones Brookfield Global Infrastructure composite Index. Brookfield has no direct role in the management of the Dow Jones Brookfield Global Infrastructure Composite Index. Risk Free Rate is the ICE BofA Merrill Lynch 3-Month Treasury Index. The quoted indexes within this report do not reflect deductions for fees, expenses or taxes. These indexes are unmanaged and can for not be purchased directly by investors. Index 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 indexes shown and an actively managed investment strategy. See index definitions at the end of this report. Investing in global listed infrastructure involves different risks, including the loss of principal. The tax treatment of returns of the asset classes listed above may differ given different tax treatment of income versus capital gain and other factors, such as the capital structure of the investment. Standard Deviation measures the degree to which an investment’s return varies from its mean return. The higher the standard deviation, the higher the risk. Sharpe Ratio is a measure that indicates the average return minus the risk-free return divided by the standard deviation of return on an investment. The higher the Sharpe Ratio the lower the risk. Past performance does not guarantee future results. Index performance is not indicative of fund performance.

0.0%

2.0%

4.0%

6.0%

8.0%

GlobalEquities

CapitalAppreciation

Income ReturnGlobal

Infrastructure

3.32%3.90%

5.47%7.17%

2.16%3.28%

0 4 8 12 16 200

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4

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Global Infrastructure

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Risk-Free Rate

S H A R P E R A T I O S : 9 / 3 0 / 0 8 – 1 2 / 3 1 / 1 8 MSCI World Index 0.42Bloomberg Barclays Global Aggregate Index 0.52Dow Jones Brookfield Infrastructure Composite Index 0.66

THE CASE FOR GLOBAL LISTED INFRASTRUCTURE 9

M O R E P O S I T I V E S E N S I T I V I T Y T O I N F L A T I O N

Over the long term, our research shows that global infrastructure equities have outperformed broad equity and fixed-income markets in periods of elevated inflation. We illustrate in Exhibit 15 with a study from September 2008 through June 2018, which compares the performance of global equities and global listed infrastructure over periods of unexpected inflation.

We attribute these results, in large part, to the contracted or regulated revenues of infrastructure assets, often with periodic escalators linked to inflation. We calculate that roughly 70% of the companies in our investible universe have inflation indexing built-in to their respective tariff mechanisms. In addition, even though end-user demand tends to be relatively inelastic (given the essential nature of infrastructure products and services), demand has generally risen in periods of rising inflation—particularly when rising prices are spurred by economic growth, job growth and higher consumption

E X H I B I T 1 5 : B E T T E R P E R F O R M A N C E I N P E R I O D S O F G R E A T E R T H A N E X P E C T E D I N F L A T I O N

As of December 31, 2018. Source: Bloomberg for the period from September 30, 2008 through December 31, 2018. Greater-than/less-than expected inflation is defined as 4-quarter periods during which Seasonally Adjusted CPI-U was greater-than/less-than the trailing 12-month Survey of Professional Forecasters (SPF) Forecast one year prior. For the period September 30, 2008 through to December 31, 2018, during which there were 12 periods of greater-than-expected Inflation. Global Equities represented by the MSCI World Index. Global infrastructure represented by the Dow Jones Brookfield Global Infrastructure Composite Index. Brookfield has no direct role in the day-to-day management of the Dow Jones Brookfield Global Infrastructure Composite Index. The quoted indexes within this report do not reflect deductions for fees, expenses or taxes. These indexes are unmanaged and can for not be purchased directly by investors. Index 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 indexes shown and an actively managed investment strategy. See index definitions at the end of this report. Investing in global listed infrastructure involves different risks, including the loss of principal. The tax treatment of returns of the asset classes listed above may differ given different tax treatment of income versus capital gain and other factors, such as the capital structure of the investment. Past performance does not guarantee future results. Index performance is not indicative of fund performance.

0.0%

5.0%

10.0%

15.0%

20.0%

GlobalEquities

GlobalInfrastructure

14.98%17.97%

E N D N O T E Si. Brookfield Public Securities Group LLC (“PSG” or “the Firm”)

is an indirect, wholly owned subsidiary of Brookfield Asset Management

ii. See Exhibits 12 through 15 of this report.iii. Source: McKinsey Investment Institute, 2017iv. Cisco Visual Networking Index: Global Mobile Data Traffic Forecast

Update, 2016–2021; updated July 31, 2018.v. As of June 2017vi. A price-to-earnings ratio is the price of a company’s stock divided

by its earnings per share.vii. As evidenced by the exhibits in the Appendix

I M P O R T A N T D I S C L O S U R E S Must be preceded or accompanied by a current prospectus if used in connection with a Brookfield mutual fund purchase. You can obtain a prospectus for a Brookfield mutual fund by calling 1-855-777-8001 or visiting our website www.Brookfield.com . Mutual fund investing involves risk. Principal loss is possible. Real assets include real estate securities, infrastructure securities and natural resources securities. 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. 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.Investments in small- and mid-cap companies involve additional risks such as limited liquidity and greater volatility. Investments in foreign securities 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. Investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Concentrating investments in specific sectors or industries 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

THE CASE FOR GLOBAL LISTED INFRASTRUCTURE 10

and (5) changes in the policies of governments and/or regulatory authorities. Investing in MLPs may generate unrelated business taxable income (UBTI) for tax-exempt investors both during the holding period and at time of sale. This material is provided for general and educational purposes only, and is not intended to 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 affect individual situations. Natural Resources Securities may be affected by numerous factors, including events occurring in nature, inflationary pressures and international politics. There is the risk that a significant investment in the Natural Resources sector will perform poorly during a downturn in the natural resource sector. For example, events occurring in nature (such as earthquakes or fires in prime natural resource areas) and political events (such as coups, military confrontations or acts of terrorism) can affect the overall supply of a natural resource and the value of companies involved in such natural resource. Political risks and the other risks to which foreign securities are subject may also affect domestic natural resource companies if they have significant operations or investments in foreign countries. Rising interest rates and general economic conditions may also affect the demand for natural resources. Debt securities rated below investment grade are commonly referred to as "junk bonds" and are considered speculative. Increases in interest rates can cause the prices of Fixed Income securities to decline, and the level of current income from a portfolio of Fixed Income securities may decline in certain interest rate environments. Investments 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 a mutual fund is forced to sell an illiquid asset to meet redemptions, the Fund may be forced to sell at a loss. Using derivatives exposes a fund to additional risks, may increase the volatility of a fund's net asset value and may not provide the result intended. Past performance is no guarantee of future results. Diversification does not assure against market loss. Earnings growth is not a measure of the fund's future performance.

D I S C L O S U R E S©2019 Brookfield Public Securities Group LLC ("PSG" or "the Firm"), formerly Brookfield Investment Management Inc., 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. PSG is an indirect, wholly-owned subsidiary of Brookfield Asset Management, Inc., a leading global alternative asset manager with approximately $300 billion of assets under management as September 30, 2018. PSG manages approximately $19 billion of assets as of September 30, 2018.

The information in this publication is not and is not intended as investment advice or prediction of investment performance.

This information is deemed to be from reliable sources; however, Brookfield does not warrant its completeness or accuracy. This commentary does not constitute, and is not intended to constitute, an offer or solicitation to sell or a solicitation of an offer to buy any security, product or service; nor shall any security, product or service be offered

or sold in any jurisdiction in which Brookfield is not licensed to conduct business, and/or where an offer, solicitation, purchase or sale would be unavailable or unlawful.

Performance shown in USD unless otherwise noted. Past performance is not indicative of future results.

F O R W A R D – L O O K I N G S T A T E M E N T S Information herein contains, includes or is based upon forward-looking statements within the meaning of the federal securities laws, specifically Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include all statements, other than statements of historical fact, that address future activities, events, or developments, including without limitation, business or investment strategy or measures to implement strategy, competitive strengths, goals, expansion and growth of our business, plans, prospects and references to our future success. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" and other similar words are intended to identify these forward-looking statements. Forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results or outcomes. Consequently, no forward-looking statement can be guaranteed. Our actual results or outcomes may vary materially. Given these uncertainties, you should not place undue reliance on these forward-looking statements.

The quoted indexes within this publication do not reflect deductions for fees, expenses or taxes. These indexes are unmanaged and cannot be purchased directly by investors. Index 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 volatility and regulatory and legal restrictions between the indexes shown and a Brookfield fund or strategy. Brookfield obtained all index data from third-party index sponsors and believes the data to be accurate; however, Brookfield makes no representation regarding its accuracy. Indexes are unmanaged and cannot be purchased directly by investors. There may be material factors relevant to any such comparison such as differences in volatility and regulatory and legal restrictions between the indexes shown and a Brookfield strategy, composite or mutual fund.

I N D E X D E F I N I T I O N S The Bloomberg Barclays Global Aggregate Index is a market capitalization-weighted index, comprising globally traded investment grade bonds. The index includes government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. The maturities of the bonds in the index are more than one year.

The Dow Jones Brookfield Global Infrastructure Composite Index is calculated and maintained by S&P Dow Jones Indices and comprises infrastructure companies with at least 70% of its annual cash flows derived from owning and operating infrastructure assets, including master limited partnerships (“MLPs”). The Dow Jones Brookfield MLP Index includes MLPS of the Dow Jones Brookfield Infrastructure Composite Index.

The ICE BofA Merrill Lynch 3-Month U.S. Treasury Bill Index is an unmanaged index representing monthly return equivalents of yield averages of the last 3-month Treasury Bill issues.

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 S&P 500 Index includes 500 widely held U.S. companies.

The S&P 500 Rail Index includes railroads in the S&P 500 Index.

The S&P Utilities Index comprises those companies included in the S&P 500 that are classified as members of the GICS® utilities sector. It is not possible to invest directly in an index.

THE CASE FOR GLOBAL LISTED INFRASTRUCTURE 11

D E F I N I T I O N SDebt-to-Capitalization is the amount of debt on a company's balance sheet divided by the total market capitalization of its publicly traded equities.

Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk.

Standard Deviation is a statistical measure used to quantify the amount of variation or dispersion of a set of data values.

Consumer Price Index for All Urban Consumers (CPI-U) measures the changes in the price of a basket of goods and services purchased by urban consumers.

I N D E X P R O V I D E R D I S C L O S U R E Brookfield Public Securities Group LLC, formerly Brookfield Investment Management Inc., does not own or participate in the construction, or day-to-day management of the indices referenced in this document. The index information provided is for your information only and does not imply or predict that a Brookfield Investment Management Inc. product will achieve similar results. This information is subject to change without notice.

The Indices referenced in this document do not reflect any fees, expenses, sales charges, or taxes. It is not possible to invest directly in an index. The index sponsors permit use of their indices and related data on an "As Is" basis, makes no warranties regarding same, does not guarantee the suitability, quality, accuracy, timeliness, and/ or completeness of their index or any data included in, related to, or derived therefrom, assumes no liability in connection with the use of the foregoing. The index sponsors have no liability for any direct, indirect, special, incidental, punitive, consequential, or other damages (including loss profits). The index sponsors do not sponsor, endorse, or recommend Brookfield Investment Management Inc. or any of its products or services.

The Brookfield Investment Funds are distributed by Quasar Distributors, LLC.

C O N T A C T U STelephone: 1-855-777-8001 Email: publicsecurities.enquiries@brookfield.com Or visit our website at www.brookfield.com

© 2019 Brookfield Public Securities Group LLC

INVESTMENT PRODUCTS: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED

THE CASE FOR GLOBAL LISTED INFRASTRUCTURE 12