[THIS PAGE IS INTENTIONALLY LEFT BLANK]/media/Files/B/... · 2019-09-25 · 486,000 Snam SpA 3,666,796 3,758,419 2.10 ... 2016 Interim Financial Statements | 7. SCHEDULE OF DERIVATIVE

2016Brookfield Global Infrastructure SecuritiesIncome FundBGI.UNInterim Financial StatementsFor the period from January 1, 2016 to June 30, 2016

Brookfield Investment Management

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Notice to ReaderThese interim financial statements and related notes of Brookfield Global Infrastructure SecuritiesIncome Fund (the “Fund”) for the six months ended June 30, 2016 have been prepared bymanagement of the Fund. The external auditors of the Fund have not audited or reviewed theseinterim financial statements.

CONTENTS

Interim Financial Statements 2

Notes to Interim Financial Statements 9

Fund Information 23

| 1

STATEMENTS OF FINANCIAL POSITIONAs at June 30, 2016, and December 31, 2015(Unaudited, Expressed in Canadian Dollars)

As at As atJune 30, 2016 December 31, 2015

$ $Assets:

Current assetsFinancial assets at fair value through profit or loss (Note 6) 204,253,330 219,630,034Cash and cash equivalents 28,597,234 25,663,014Collateral cash (Note 7) 6,000,000 -Due from broker 380,915 2,673,305Accrued investment income 1,012,463 1,112,499

Total assets 240,243,942 249,078,852Liabilities:

Current liabilitiesNet unrealized depreciation on forward currency contracts 245,931 -Margin payable (Note 7) 50,446,259 73,509,373Distributions payable (Note 12) 3,893,875 3,893,874Due to broker 6,410,898 661,771Accounts payable and accrued liabilities 226,573 271,192

Total liabilities (excluding net assets attributable to holders ofredeemable units) 61,223,536 78,336,210

Net assets attributable to holders of redeemable units 179,020,406 170,742,642

Number of redeemable units outstanding (Note 11) 25,959,163 25,959,163

Net assets attributable to holders of redeemable units per unit 6.90 6.58

See accompanying notes to financial statements.

Approved on behalf of the Manager, Brookfield Investment Management (Canada) Inc.

Gail CecilPresident

Jonathan TyrasChief Financial Officer

Brookfield Global Infrastructure Securities Income Fund

2016 Interim Financial Statements | 2

STATEMENTS OF COMPREHENSIVE INCOME (LOSS)For the six months ended June 30,(Unaudited, Expressed in Canadian Dollars)

2016 2015$ $

Investment income (loss)Interest income for distribution purposes 205,672 1,092,689Dividend income 8,114,766 7,536,148Net realized gain (loss) on sale of investments (40,803,040) 2,254,332Net realized gain on forward currency contracts 462,160 -Net realized foreign exchange loss (7,459,009) (420,651)Net change in unrealized depreciation on forward currency contracts (245,931) -Net change in unrealized appreciation (depreciation) of investments 50,098,122 (13,525,374)Net change in unrealized appreciation (depreciation) on foreignexchange 9,280,366 (10,809,563)

Total investment income (loss) 19,653,106 (13,872,419)

Expenses (Note 9)Management fees 1,105,025 2,437,912Interest expense 643,311 760,787Dividend expense - 1,679,242Brokerage commissions and other charges 520,632 533,694Audit fees 12,206 12,957Legal fees 10,115 14,429Other expenses 112,247 792,163

Total expenses 2,403,536 6,231,184

Comprehensive income (loss) 17,249,570 (20,103,603)

Withholding taxes (1,184,057) (405,198)

Increase (decrease) in net assets attributable to holders of redeemableunits 16,065,513 (20,508,801)

Increase (decrease) in net assets attributable to holders of redeemableunits per unit 0.62 (0.60)




STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLEUNITSFor the six months ended June 30,(Unaudited, Expressed in Canadian Dollars)

2016 2015$ $

Net assets attributable to holders of redeemable units, beginning ofperiod 170,742,642 355,452,351

Increase (decrease) in net assets attributable to holders of redeemable units 16,065,513 (20,508,801)

Redeemable unit transactionsAmounts paid for redemption of units - (92,560)

Net decrease from redeemable unit transactions - (92,560)

Distributions to holders of redeemable unitsReturn of net investment income (7,787,749) (10,285,475)

Total distributions to holders of redeemable units (7,787,749) (10,285,475)

Net increase (decrease) in net assets attributable to holders of redeemableunits 8,277,764 (30,886,836)

Net assets attributable to holders of redeemable units, end of period 179,020,406 324,565,515




STATEMENTS OF CASH FLOWSFor the six months ended June 30,(Unaudited, Expressed in Canadian Dollars)

2016 2015$ $

Cash flows provided by (used for):

Cash flows from operating activitiesIncrease (decrease) in net assets attributable to holders of redeemableunits 16,065,513 (20,508,801)

Adjustments for:Interest income for distribution purposes (205,672) (1,092,689)Dividend income, net of withholding taxes (6,930,709) (7,130,950)Net realized (gain) loss on investments 40,803,040 (2,254,332)Net change in unrealized (appreciation) depreciation on investments (50,098,122) 13,525,374Net change in unrealized depreciation on forward currency contracts 245,931 -Increase in collateral cash (6,000,000) -Decrease in accounts payable and accrued liabilities (44,619) (395,362)

Interest received 323,516 1,366,934Dividends received, net of witholding taxes 6,912,901 6,892,337Proceeds from sale of investments 202,818,671 105,988,375Amounts paid for purchase of investments (170,105,368) (153,346,420)

Net cash provided by (used for) operating activities 33,785,082 (56,955,534)

Cash flows from financing activitiesMargin payable, net (repayments) borrowings and foreign exchange (23,063,114) 10,865,294Distrubutions paid to unit holders (7,787,748) (10,287,050)Amounts paid for redemptions of units - (92,560)

Net cash provided by (used for) financing activities (30,850,862) 485,684

Net increase (decrease) in cash and cash equivalents 2,934,220 (56,469,850)Cash and cash equivalents, beginning of period 25,663,014 115,025,296Cash and cash equivalents, end of period 28,597,234 58,555,446




SCHEDULE OF INVESTMENTSAs at June 30, 2016(Unaudited, Expressed in Canadian Dollars)

Quantity Security Average Cost$

Fair Value$

% of NetAssets

BondsUnited States Dollar Denominated

1,794,600 Approach Resources Inc. 7.000% 06/15/2021 1,497,831 1,375,083 0.771,497,831 1,375,083 0.77

EquitiesUnited States Dollar Denominated

74,793 American Tower Corp. 6,770,082 11,035,367 6.1656,200 American Water Works Co Inc. 5,068,976 6,168,133 3.45

294,900 Archrock Partners LP 4,821,590 5,185,644 2.90486,300 Boardwalk Pipeline Partners LP 8,000,006 11,020,695 6.16155,773 CSX Corp. 6,917,669 5,276,052 2.9577,500 Edison International 6,749,539 7,817,435 4.37

167,300 Enbridge Energy Management LLC 4,387,817 4,999,445 2.79207,900 Enbridge Energy Partners LP 4,899,476 6,264,000 3.50300,343 Energy Transfer Partners LP 18,388,626 14,849,426 8.29181,164 NiSource Inc. 4,187,101 6,239,571 3.48330,100 NRG Yield Inc. 6,004,743 6,570,579 3.67551,343 Rice Midstream Partners LP 9,540,836 14,628,490 8.1766,100 SBA Communications Corp. 5,632,177 9,266,018 5.18

219,744 Targa Resources Corp. 6,303,128 12,025,990 6.72173,728 Teekay Offshore Partners L.P. Class A Warrants 0 0 0.0086,864 Teekay Offshore Partners L.P. Class B Warrants 0 0 0.00

154,425 Teekay Offshore Partners L.P. Class D 5,013,799 5,013,799 2.8059,800 Union Pacific Corp. 6,545,616 6,776,039 3.78

170,200 Williams Cos Inc. 4,628,512 4,781,073 2.67295,200 Williams Partners LP 10,830,996 13,280,166 7.42

124,690,689 151,197,922 84.46Canadian Dollar Denominated

201,900 Pembina Pipeline Corp. 6,722,866 7,926,594 4.43132,700 TransCanada Corp. 6,636,699 7,757,642 4.33233,637 Veresen, Inc. 3,212,650 2,558,325 1.43

16,572,215 18,242,561 10.19Euro Denominated

105,000 Abertis Infraestructuras SA 1,783,581 1,999,711 1.12188,100 Ferrovial SA 4,642,765 4,731,674 2.64274,400 Groupe Eurotunnel SE 5,009,310 3,780,869 2.11486,000 Snam SpA 3,666,796 3,758,419 2.10

15,102,452 14,270,673 7.97Mexican Peso Denominated

1,284,500 Grupo Aeroportuario del Centro Norte SAB deCV

8,355,739 9,800,629 5.47

8,355,739 9,800,629 5.47



Swiss Franc Denominated25,200 Flughafen Zuerich AG 2,732,314 5,784,917 3.23

2,732,314 5,784,917 3.23Australian Dollar Denominated

308,900 Transurban Group 3,324,871 3,581,545 2.003,324,871 3,581,545 2.00

Transaction costs (184,645)Total Investments 172,091,466 204,253,330 114.09Due to broker 380,915 0.21Accrued investment income 1,012,463 0.57Cash and cash equivalents 28,597,234 15.97Collateral Cash 6,000,000 3.35Derivative instruments (245,931) (0.14)Liabilities, net of other assets (60,977,605) (34.05)Net assets attributable to holders of redeemable units 179,020,406 100.00



SCHEDULE OF DERIVATIVE INSTRUMENTSAs at June 30, 2016(Unaudited, Expressed in Canadian Dollars)

Forward Currency Contracts

Amount Bought Amount SoldMaturityDate

UnrealizedGains /(Losses)

$

CAD 2,597,265 AUD 2,700,000 July 28, 2016 (10,597)CAD 12,380,560 EUR 8,600,000 July 28, 2016 (39,002)CAD 7,167,969 MXN 105,000,000 July 28, 2016 (202,613)CAD 4,279,791 CHF 3,200,000 July 28, 2016 6,281Total (245,931)




NOTES TO THE INTERIM FINANCIAL STATEMENTS

1. THE FUND

Brookfield Global Infrastructure Securities Income Fund (the “Fund”) is an investment fund establishedunder the laws of the Province of Ontario pursuant to a Declaration of Trust dated June 24, 2013. TheFund effectively began operations on July 18, 2013 when it completed an initial public offering of32,500,000 units of the Fund (the “Units”) and subsequently issued 1,900,000 Units pursuant to anover-allotment option on July 30, 2013 at $10.00 per Unit (the “Offering”), for gross proceeds of$344.0 million and net proceeds of $325.1 million after deducting issuance costs of approximately$18.9 million.

The investment objectives of the Fund are to (i) provide holders of units (“Unitholders”) with quarterlycash distributions; (ii) maximize total return for Unitholders through distributions and capitalappreciation; and (iii) preserve capital of the Fund by investing in a portfolio (the "Portfolio")comprised primarily of equity securities of publicly-traded global infrastructure companies that ownand operate infrastructure assets.

Brookfield Investment Management (Canada) Inc. (“BIM Canada”) is the manager (the “Manager”) andthe trustee of the Fund. Brookfield Investment Management Inc. (“BIM”) is the investment manager(the “Investment Manager”) of the Fund. The Investment Manager makes all of the investment andtrading decisions on behalf of the Fund. The Fund’s registered office is Brookfield Place, 181 Bay Street,Suite 300 Toronto, Ontario, Canada, M5J 2T3. These financial statements were authorized for issue bythe Manager on August 29, 2016.

2. BASIS OF PRESENTATION

These financial statements have been prepared in compliance with International Financial ReportingStandards ("IFRS").

The financial statements have been prepared on the historical cost basis, except for the revaluation ofcertain financial instruments. Historical cost is generally based on the fair value of the considerationgiven in exchange for assets.

In applying IFRS, management makes estimates and assumptions that may affect the amounts of assets,liabilities, income and expenses reported in these financial statements. The most significant estimatesrelate to the valuation of investments. Actual results may differ from the estimates.

3. SIGNIFICANT ACCOUNTING POLICIES

Financial InstrumentsThe Fund's investments in equity and fixed income securities are designated at fair value through profitor loss (“FVTPL”) at inception. The Fund's derivatives are categorized as held for trading. As a result ofsuch designation and categorization, the Fund's investments and derivatives are measured at FVTPL.The Fund's accounting policies for measuring the fair value of its investments and derivatives areidentical to those used in measuring its published net asset value (NAV).



OffsettingFinancial assets and liabilities are offset and the net amount presented in the Statements of FinancialPosition only when the Fund has a legal right to offset the amounts and intends either to settle on a netbasis or to realize the asset and settle the liability simultaneously. In the normal course of business, theFund enters into various master netting agreements or similar agreements that do not meet the criteriafor offsetting in the Statements of Financial Position but still allow for the related amounts to be offsetin certain circumstances, such as bankruptcy or termination of contracts.

Fair Value MeasurementFair value is the price that would be received to sell an asset or paid to transfer a liability in an orderlytransaction between market participants at the measurement date. The fair value of financial assetsand liabilities traded in active markets (such as publicly traded marketable securities) are based onquoted market prices at the close of trading on the reporting date. However, if (i) a fair value or priceis not readily available, (ii) the available quotations are not believed to be reflective of fair value bythe Investment Manager, or (iii) a significant event has occurred that would materially affect the valueof the security, the security is fair valued, as determined in good faith, by the Fund’s ValuationCommittee. The Fund’s Valuation Committee is comprised of senior members of the InvestmentManager's management team. The price determined by the Valuation Committee is an estimate andmay differ from the actual price used in a purchase or sale transaction. The Fund’s policy is to recognizetransfers into and out of the fair value hierarchy levels as of the last day of the reporting period.

The fair value of financial assets and liabilities that are not traded in an active market includingover-the-counter derivatives, is determined using established valuation procedures. The Fund uses avariety of valuation methods and makes assumptions that are based on market conditions existing ateach measurement date. Valuation techniques include the use of comparable recent arm’s lengthtransactions, reference to other instruments that are substantially the same and others commonly usedby market participants and which make the maximum use of observable inputs. Refer to Note 6 forfurther information about the Fund’s fair value measurements.

All investment transactions are accounted for on the trade date. Realized gains and losses frominvestment transactions and unrealized appreciation or depreciation in the value of investments arecalculated on an average cost basis, excluding transaction costs and the effect of foreign exchangefluctuations, which are disclosed separately.

Other assets and liabilitiesFor the purpose of categorization, accrued investment income is recorded at cost or amortized cost.Similarly, margin payable, payables for securities purchased, distributions payable and accountspayable and accrued liabilities are deemed to be other financial liabilities and reported at amortizedcost. All other financial assets and liabilities are measured at amortized cost. Under this method,financial assets and liabilities reflect the amounts required to be received or paid, discounted whenappropriate, at the financial instrument’s effective interest rate. The fair values of the Fund's financialassets and liabilities that are not carried at FVTPL approximate their carrying amounts due to theirshort-term nature.

Revenue recognitionDividend income is recognized on the ex-dividend date and the interest for distribution purposes shownon the Statements of Comprehensive Income represents the coupon interest received by the Fundaccounted for on an accrual basis.



Transaction costsTransaction costs, such as brokerage commissions incurred in the purchase and sale of securities by theFund, are expensed and are included in operating expenses in the Statements of ComprehensiveIncome. Transaction costs are incremental costs that are directly attributable to the acquisition, issueor disposal of an investment, which include fees and commissions paid to agents, advisors, brokers anddealers, levies by regulatory agencies and securities exchanges, and transfer taxes and duties.

Functional and presentation currencyThe performance of the Fund is measured and reported to investors in Canadian dollars. The Managerconsiders the Canadian dollar as the currency that most faithfully represents the economic effects ofthe underlying transactions, event and conditions. These financial statements are presented inCanadian dollars, which is the Fund’s functional currency.

Foreign currency translationInvestments and other assets denominated in foreign currencies are translated into Canadian dollarsusing the rate of exchange prevailing on the trade date. Investment transactions and income andexpenses are translated at the rate of exchange on the date of such transactions. The fair values ofinvestments, other assets and liabilities, and any adjustments included in the Statements ofComprehensive Income (Loss) in foreign currencies are translated at the period-end exchange rates.

Forward currency contractsForward currency contracts, if applicable, are valued at current market value on each valuation date.The value is determined as the gain or loss that would be realized, if on the valuation date, the positionof the forward currency contracts were closed out.

Redeemable UnitsThe Fund's redeemable units are classified as financial liabilities. Distributions to holders ofredeemable units are recognized in Statements of Changes in Net Assets Attributable to Holders ofRedeemable Units when they are authorized. The characteristics of the units are not identical andtherefore do not meet the criteria in IAS 32 - Financial Instruments - Presentation, for classification asequity.

New standards and interpretations not yet adopted:In July 2014, the IASB finalized the reform of financial instruments accounting and issued IFRS 9Financial Instruments (“IFRS 9”) (as revised in 2014), which contains the requirements for a) theclassification and measurement of financial assets and financial liabilities, b) impairment methodologyand c) general hedge accounting. IFRS 9 (as revised in 2014) will supersede IAS 39 FinancialInstruments: Recognition and Measurement in its entirety upon its effective date.

The new standard becomes effective for annual periods beginning on or after January 1, 2018. IFRS 9is not expected to have a significant impact on the Fund's measurement basis, financial position orperformance, as it is expected that the Fund will continue to classify its financial assets and financialliabilities as being at fair value through profit or loss.

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of financial statements in conformity with IFRS requires the Manager to makejudgments, estimates and assumptions that affect the application of accounting policies and thereported amounts of assets, liabilities, income and expenses. Actual results may differ from theseestimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates arerecognized in the period in which the estimates are revised and in any future period affected.



Fair Value Measurement of Derivatives and Securities Not Quoted in an Active MarketThe Fund may hold financial instruments that are not quoted in active markets. Fair values of suchinstruments are determined using valuation techniques and may be determined using reputable pricingsources (such as pricing agencies) or indicative prices from market makers. Broker quotes as obtainedfrom the pricing sources may be indicative and not executable or binding.

5. MANAGEMENT OF FINANCIAL RISKS

The Fund is exposed to various financial risks, including market risk (consisting of currency risk,interest rate risk, and other price risk), and liquidity risk. The Fund's overall risk managementprogramme seeks to minimize potentially adverse effects of those risks on the Fund's financialperformance by employing experienced portfolio managers and by continuous monitoring of the Fund'ssecurities positions and markets. The Investment Manager maintains a corporate governance structurethat oversees the Fund's investment activities. The Fund may use derivative financial instruments tomitigate certain risk exposures and is currently engaged in a series of foreign exchange contracts asdescribed below.

Currency RiskCurrency risk is the risk that the value of an investment will change due to fluctuations in foreignexchange rates.

The Fund's net assets attributable to holders of redeemable Units are measured in Canadian dollars andpayments to Unitholders are made in Canadian dollars. The Fund is exposed to currency risks as it mayhold assets or have liabilities denominated in currencies other than in Canadian dollars. As at June 30,2016 and December 31, 2015, the Fund was exposed to currency risk as the value of any assets orliabilities denominated in currencies other than the Canadian dollar will vary due to changes in foreignexchange rates.

The following tables summarize the Fund's net exposure to foreign currency as at June 30, 2016 andDecember 31, 2015:

June 30, 2016 Investments$

Cash$

Other Net Assets/(Liabilities)*

$

DerivativeInstruments

$Total

$Net Asset

%

U.S. Dollar 152,573,005 19,047 (54,981,847) - 97,610,205 54.52Euro 14,270,673 (345,048) (915,596) (12,419,562) 590,467 0.33Mexican Peso 9,800,629 - - (7,370,582) 2,430,047 1.36Swiss Franc 5,784,917 - 41,656 (4,273,510) 1,553,063 0.87Australian Dollar 3,581,545 - 265,267 (2,607,862) 1,238,950 0.69British Pound - 69 - - 69 -Total 186,010,769 (325,932) (55,590,520) (26,671,516) 103,422,801 57.77

*Other Net Assets/(Liabilities) includes borrowings of $50,446,259.



December 31, 2015 Investments$

Cash$

Other Net Assets/(Liabilities)*

$

DerivativeInstruments

$Total

$Net Asset

%

U.S. Dollar 120,760,133 109,825 (72,655,480) - 48,214,478 28.24Euro 39,415,741 61 1,168,687 - 40,584,489 23.77Mexican Peso 12,960,662 - 141,359 - 13,102,021 7.67Australian Dollar 12,852,516 - 800,078 - 13,652,594 8.00Swiss Franc 12,443,138 - - - 12,443,138 7.29Brazilian Real 1,745,535 - - - 1,745,535 1.02British Pound - 82 - - 82 -Total 200,177,725 109,968 (70,545,356) - 129,742,337 75.99

*Other Net Assets (Liabilities) includes borrowings of $73,509,373.

As at June 30, 2016, had the Canadian dollar strengthened or weakened by 1% against each of the othercurrencies with all other variables remaining constant, the net assets of the Fund would havedecreased or increased by $1,034,228 (December 31, 2015 - $1,297,423). From time to time, between0% and 100% of the value of the Portfolio’s non-Canadian currency may be hedged back to the Canadiandollar.

As at June 30, 2016, the Fund had entered into forward currency contracts with a net unrealized lossof $245,931 (No forward currency contracts open at December 31, 2015) to deliver currencies atspecified future dates. For further information regarding forward currency contracts, see the Scheduleof Derivative Instruments.

Interest rate riskInterest rate risk arises from the possibility that changes in interest rates will affect future cash flowsor fair values of financial instruments.

The Fund is exposed to interest rate risk from its holdings of fixed-rate debt instruments, the values ofwhich fluctuate due to changes in prevailing levels of market interest rates.

As at June 30, 2016 the Fund's debt instruments’ remaining terms were as follows:

Debt Instruments $% of

Net Assets

Less than 1 year - -1 to 3 years - -3 to 5 years 1,375,083 0.77Greater than 5 years - -Total 1,375,083 0.77



As at December 31, 2015 the Fund's debt instruments’ remaining terms were as follows:

Debt Instruments $% of

Net Assets

Less than 1 year - -1 to 3 years - -3 to 5 years 3,359,541 1.96Greater than 5 years 884,973 0.52Total 4,244,514 2.48

Interest rate risk of the Fund is currently mitigated by the relatively short duration and high creditspread of the high yield bonds in the Portfolio. These characteristics make the Portfolio’s sensitivity tointerest rate risk relatively less than what would be experienced by a portfolio with longer durationinvestments that trade at tighter spreads to government-backed fixed income securities. It would alsobe possible to hedge interest rate risk by short selling government-backed fixed income securities orengaging in various interest rate derivatives. As at June 30, 2016 and December 31, 2015, the Fund hadno such hedges in place.

At June 30, 2016, if the prevailing interest rates had risen or declined by 0.25%, assuming a parallelshift in the yield curve, with all other variables held constant, the Fund's net assets would havedecreased or increased, respectively, by approximately $12,474 (December 31, 2015 - $27,710). TheFund's sensitivity to interest rate changes was estimated using the weighted average duration of thebonds. In practice, the actual results may differ from this sensitivity analysis and the differences couldbe material.

Other price riskOther price risk is the risk that the value of financial instruments will fluctuate as a result of changesin market prices (other than those arising from interest rate risk or currency risk). Such changes maybe the result of factors affecting multiple instruments traded in a market, market segment or assetclass. The Fund is exposed to other price risk of securities held in the Portfolio. The Fund may takeoutright long or short positions in any of its investments, which may include derivative instruments forpurposes consistent with its investment objectives and investment strategy and subject to itsinvestment restrictions.

All investments present a risk of capital loss. The Investment Manager seeks to mitigate this riskthrough careful selection of securities and other financial instruments. As at June 30, 2016, had themarket increased or decreased by 5% with all other variables remaining constant, the net assets of theFund would have increased or decreased by $10,212,667 (December 31, 2015 $10,981,502).

As at June 30, 2016 , the Fund had no direct exposure to derivatives other than forward currencycontracts (as at December 31, 2015, there was no direct exposure to derivatives) described above tomitigate price risks and had no securities sold short.

Credit riskCredit risk is the risk of non-payment of scheduled interest and/or principal payments.

The Fund is exposed to several types of credit risks including the risk that one or more investments inthe Portfolio will decline in price, or fail to pay interest or principal when due, because the issuer ofthe security experiences a decline in its financial status. As at June 30, 2016, the maximum exposureto any one debt issuer in the Portfolio was $1,375,083 (December 31, 2015 - $3,359,541) representing0.77% (December 31, 2015 - 1.96%) of net assets attributable to redeemable units.



The performance of the Fund is also subject to general economic and specific industry conditions thatcould impact the fair value of one or more debt securities in the Portfolio. Securities with lower ratingstend to be more sensitive to these kinds of risks.

As at June 30, 2016 and December 31, 2015 the Fund was invested in debt securities with the followingcredit ratings.

June 30, 2016 December 31, 2015

Debt Instruments by S&P Rating% of NetAssets Total $

% of NetAssets Total $

B 0.77 1,375,083 2.48 4,244,514Total 0.77 1,375,083 2.48 4,244,514

The Investment Manager seeks to mitigate the above credit risk through the careful selection ofinvestments, through the employment of experienced portfolio managers and through continuousmonitoring of the Fund's investments.

Another type of credit risk is exposure to the creditworthiness of the Fund's trading counterparties. Allsecurities transactions executed by the Fund are settled upon delivery using approved brokers. The riskof payment default is considered negligible, as delivery of securities sold is only made once the brokerhas received payment on behalf of the Fund. Payment is not made on a purchase until the securitieshave been received by the broker on behalf of the Fund. The trade will fail if either party fails to meetits obligation.

The Fund may enter into forward foreign currency exchange contracts primarily to hedge againstforeign currency exchange rate risks on its non-Canadian dollar denominated investment securities. Inaddition to currency and market risk, forward foreign currency exchange contracts involve risks arisingfrom the possible inability of counterparties to meet the terms of their contracts from movement incurrency, security values, and interest rates. The Fund seeks to mitigate this risk through the carefulselection of its derivative counterparties.

Liquidity riskLiquidity risk is the risk that the Fund may not be able to settle or meet its obligations on time or at areasonable price.

The Fund has current financial liabilities outstanding, including but not limited to, margin loans andinterest payable on its margin loans, accounts payable and accrued liabilities. The Investment Managerseeks to mitigate this liquidity risk by ensuring that a reasonable portion of the Fund's investmentstrade in active markets and can be sold readily. There can be no assurance that an adequate market forthe investments will exist at all times, or that the prices at which the investments trade, accuratelyreflect their fair value. Low trading volumes of the investments could also make it difficult to liquidateholdings quickly.

As required by IFRS 7 – Financial Instruments, the Fund’s financial liabilities should be categorized intorelevant maturity groupings based on the remaining period as at June 30, 2016, to the contractualmaturity date. However, as all liabilities, including liabilities for redeemable units tendered forredemption as of the applicable balance sheet date (of which there were none as at June 30, 2016), aredue in less than one year, this analysis is not required in this instance. In accordance with the Fund’spolicy, the Investment Manager monitors the Fund’s overall liquidity risk on a continuous basis.



6. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Fund uses a three-tier hierarchy as a framework for disclosing fair value which reflects thesignificance of the inputs used in making the measurements. The hierarchy has the following levels:

• Level 1 - quoted prices in an active market (Level 1—unadjusted inputs);• Level 2 - inputs other than quoted prices (Level 2—directly or indirectly derived from

observational market data); and• Level 3 - inputs not based on observable market data (Level 3—unobservable inputs).

In addition to the above disclosure requirements, IFRS 13 – Fair Value Measurement, requires disclosureof significant transfers between Levels 1 and 2 since the prior reporting period, as well as reconciliationof Level 3 assets, disclosing separately changes during the reporting period attributable to:(i) total gains or losses recognized in net income, and a description of where they are presented

in the income statement,(ii) purchases, sales, issues and settlements, and(iii) transfers into or out of Level 3 and the reasons for those transfers. Any significant transfers

between Level 1 and Level 2 are disclosed. Further, for fair value measurements in Level 3,if changing one or more type of the inputs to reasonably possible alternative assumptionswould change fair value significantly, the entity shall state this fact and disclose both theeffect of those changes and how the effect was calculated.

The following table provides a summary of the inputs used as at June 30, 2016 and December 31, 2015,respectively, in valuing the Fund's investments carried at fair value:

As at June 30, 2016Level 1

$Level 2

$Level 3

$Total

$

Investments, at fair value:Equities 202,878,247 - - 202,878,247Bonds - 1,375,083 - 1,375,083

Total Investments, at fair value 202,878,247 1,375,083 - 204,253,330Derivative liabilities - (245,931) - (245,931)Total Investments, at fair value 202,878,247 1,129,152 - 204,007,399

As at December 31, 2015Level 1

$Level 2

$Level 3

$Total

$

Investments, at fair value:Equities 215,385,520 - - 215,385,520Bonds - 4,244,514 - 4,244,514

Total Investments, at fair value 215,385,520 4,244,514 - 219,630,034Total Investments, at fair value 215,385,520 4,244,514 - 219,630,034

The carrying values of cash, subscriptions receivable, accrued investment income, due to and due frombroker, redemptions payable, distributions payable, accounts payable and accrued liabilities and theFund’s obligations for Net Assets attributable to holders of redeemable units approximates their fairvalues due to their short-term nature.

During the Period, there were no Level 3 assets held by the Fund, nor were there significant transfersbetween levels.



The following provides details of the categorization in the fair value hierarchy by asset classes:

a) EquitiesThe Fund's equity positions are classified as Level 1 when the security is actively traded and a reliableprice is observable.

b) Fixed incomeFixed income includes primarily corporate bonds which are valued at the bid price provided byrecognized investment dealers . These prices are observable and therefore the Fund's corporate bondsand term loans have been classified as Level 2.

c) Derivative assets and liabilitiesDerivative assets and liabilities consist of forward currency contracts which are valued based primarilyon the contract notional amount, the difference between the contract rate and the forward marketrate for the same currency, interest rates and credit spreads. Contracts for which counterparty creditspreads are observable and reliable, or for which credit-related inputs are determined not to besignificant to fair value are classified as Level 2.

7. BORROWINGS

The Fund uses leverage to finance the purchase of certain investments. Leverage is restricted to 33%of the total assets for the Fund. Accordingly, at the time of borrowing, the maximum amount ofleverage that the Fund could employ is 1.50:1 (total long positions (including leveraged positions)divided by net assets of the Fund). Derivatives and short selling used solely for purposes of hedging arenot included in the leverage threshold calculation. As at June 30, 2016, the Fund had employedleverage equal to 21.0% of total assets (December 31, 2015 - 29.5%) equating to $50.4 million(December 31, 2015 - $73.5 million) of total net assets. This minimum and maximum amount ofborrowings outstanding during the six months ended June 30, 2016 was $43.2 million and $75.5 million,respectively, and six months ended December 31, 2015 was $72.7 million and $153.6 million,respectively. The Fund has certain securities and cash pledged as collateral against the margin payablebalance. The borrowings may be used to grow the Fund's investments and for working capital needs.Adding a controlled amount of leverage to the Fund is consistent with the Fund's objectives.

8. INCOME TAXES

The Fund qualifies as a mutual fund trust under the Income Tax Act (Canada) and, accordingly, is notsubject to tax on the portion of its income, including net realized capital gains for its taxation year thatis paid or payable to Unitholders. Income tax on net realized capital gains not paid or payable will begenerally recoverable by virtue of refunding provisions contained in the Income Tax Act (Canada) andprovincial income tax legislation, as redemptions occur. It is the intention of the Fund to pay all nettaxable income and sufficient net taxable gains so that the Fund will not be subject to income taxes.The Fund may distribute more than it earns, in which case the excess distribution is a return of capitaland is not taxable to Unitholders.

No provision for income taxes has been recorded in the accompanying financial statements as allincome and net realized capital gains are to be distributed to the Unitholders. Capital losses realizedin excess of those utilized to offset realized capital gains in the current taxation year can be carriedforward indefinitely and may be applied against future years’ capital gains. Non-capital losses may becarried forward for a period of 20 years and applied against future years’ taxable income. As atDecember 31, 2015, the Fund had $51,775,652 in capital losses and had no non-capital losses.



9. EXPENSES OF THE FUND

An annual management fee equal to 1.25% per annum of the net asset value of the Fund, calculateddaily and payable monthly in arrears plus applicable taxes, is paid to the Manager. The management feetotalled $1,105,025 and $2,437,912 for the six month periods ended June 30, 2016 and June 30, 2015,respectively.

The Fund pays for all ordinary expenses incurred in connection with its operation and administration,including, but not limited to, all costs of Portfolio transactions, fees payable to the Manager,administrator and other third party service providers, custodial fees, legal, accounting, audit andvaluation fees, other administrative expenses and extraordinary expenses that the Fund may incur.

The Manager is also eligible in each fiscal year to receive from the Fund a performance fee (the"Performance Fee") that shall be calculated and accrued monthly and be paid annually, if applicable.The Performance Fee for a given year will, subject to some exceptions regarding redemptions andissuances of Units, be equal to 20% of the amount by which the sum of the net asset value per Unit(calculated without taking into account any Performance Fee) plus distributions paid on such Unitsduring the year exceeds 106.0% of the Threshold Amount plus applicable taxes. The Threshold Amountwill be the greater of: (i) $10.00; and (ii) the net asset value per Unit at the end of the last fiscal yearin which a Performance Fee was paid (after payment of such Performance Fee). Please refer to theFund's Prospectus for additional information on the Performance Fee. The Performance Fee accrualtotalled $0 and $0 for the six month periods ended June 30, 2016 and June 30, 2015, respectively.

10. RELATED PARTY DISCLOSURE

The Manager and Investment Manager are a wholly-owned subsidiaries of Brookfield AssetManagement Inc. (“Brookfield”) and the Investment Manager manages the investment and tradingactivities of the Fund pursuant to a portfolio management agreement. Due to Brookfield’s ability tocontrol the Fund, Brookfield, and its affiliates over which it has the ability to exercise control orsignificant influence, are related parties of the Fund by virtue of common control or commonsignificant influence.

Transactions with related parties, including investment transactions, are conducted in the normalcourse of operations and are recorded at exchange amounts, which are equivalent to normal marketterms. Please refer to Note 9, which outlines the fees paid to the Manager by the Fund.

As at June 30, 2016 and December 31, 2015, Brookfield and its affiliates did not own any interest in theFund. There were no other transactions conducted with related parties during the presented periods.

11. REDEEMABLE UNITS AND NET ASSETS ATTRIBUTABLE TO HOLDERS OF REDEEMABLE UNITS

The Fund is authorized to issue an unlimited number of redeemable and transferable Units of a singleclass, each of which represents an equal, undivided interest in the net assets of the Fund.

The Declaration of Trust provides that the Fund may not issue additional Units except: (i) for netproceeds not less than 100% of the net asset value per Unit calculated as of the close of business on thebusiness day immediately prior to the pricing of such offering; (ii) by way of Unit distributions; or (iii)with the approval of Unitholders.



Commencing in September 2015 to and including September 2017, Units must be surrendered by 5:00p.m (Toronto time) on the 15th day in September of each year (the "Notice Period"), if and only if theannual redemption condition (the “Annual Redemption Condition”), described below, has been met insuch year. Units properly surrendered during the Notice Period for redemption will be redeemed on thelast business day in September of each year (the "Annual Redemption Date") and the Unitholder willreceive a redemption price per Unit equal to 100% of the net asset value per Unit as determined on theAnnual Redemption Date less any costs associated with the redemption.

The Annual Redemption Condition states that Units may only be redeemed on an Annual RedemptionDate if the simple average of the Net Asset Values of the Units on each business day occurring in themonth ofAugust preceding theAnnual Redemption Date is less than $10.00. Notwithstanding theAnnualRedemption Condition, Units may be redeemed at the option of Unitholders on the last business day ofSeptember 2018 and on the last business day of September each year thereafter, subject to the NoticePeriod.

Changes in the number of issued redeemable Units outstanding for the Fund for the period endedconsisted of the following:

For the period ended

June 30, 2016

For the period ended

December 31, 2015

Beginning Units 25,959,163 34,290,350

Subscription of Units - -

Redemption of Units - (8,331,187)

Number of Units outstanding, end of period 25,959,163 25,959,163

Capital managementUnits issued and outstanding represent the capital for the Fund. The Fund has no restrictions or specificcapital requirements and is authorized to issue an unlimited number of transferable Units. Restrictionsand specific requirements on the redemption of Units are described above.

The Statements of Changes in Net Assets Attributable to Holders of Redeemable Units and the abovetable outline the relevant changes of the Units for the period. The Fund manages its capital inaccordance with its investment objectives and strategies and the risk management practices outlinedin Note 5 while maintaining sufficient liquidity to meet Unitholder redemptions.

12. DISTRIBUTIONS

In accordance with the Fund's investment objective to provide Unitholders with quarterly cashdistributions, the Fund intends to make quarterly distributions to Unitholders of record on the lastbusiness day of March, June, September and December (each, a “Distribution Record Date”).Distributions will be paid on a business day designated by the Manager that will be no later than the15th business day of the month following the Distribution Record Date. The Fund has adopted adistribution reinvestment plan which shall provide that all quarterly cash distributions made by theFund shall, at the election of each Unitholder, be automatically reinvested in additional Units on eachUnitholder’s behalf in accordance with the terms of the plan. The initial quarterly distributions aretargeted to be $0.15 per Unit ($0.60 per annum representing an annual cash distribution of 6.0% based



on the $10.00 per Unit issue price). During the period ended June 30, 2016, the Fund declared twoquarterly cash distributions of $0.15 per Unit each. Distributions payable as at June 30, 2016 totalled$3,893,875 (December 31, 2015; $3,893,874. The distribution was subsequently paid to Unitholders inearly July 2016. The Fund does not have a fixed quarterly distribution.

In any year after such distributions, there would otherwise remain in the Fund additional operatingprofit or net realized capital gains, the Fund intends to make, on or before December 31 of that year,a special distribution of such portion of the remaining net income and net realized capital gains as isnecessary to ensure the Fund will not be liable for income tax under the Income Tax Act (Canada).

13. FINANCIAL INSTRUMENTS BY CATEGORY

The following table presents the carrying amounts of the Fund's financial assets and liabilities bycategory as at June 30, 2016 and December 31, 2015, respectively.

At FVTPL At Amortized Cost

Financial Assets as at June 30, 2016Held forTrading

$

Designatedat Inception

$Total

$Total

$

Financial assets at fair value through profit or loss - 204,253,330 204,253,330 -

Cash and cash equivalents - - - 28,597,234

Collateral cash - - - 6,000,000

Due from broker - - - 380,915

Accrued investment income - - - 1,012,463

Total - 204,253,330 204,007,399 35,990,612

Financial Liabilities as at June 30, 2016Held forTrading

$


$Total

$Total

$

Net unrealized depreciation on forward currency contracts 245,931 - 245,931 -

Distributions payable - - - 3,893,875

Margin payable - - - 50,446,259

Due to broker - - - 6,410,898

Accounts payable and accrued liabilities - - - 226,573

Total 245,931 - 245,931 60,977,605



At FVTPL At Amortized Cost

Financial Assets as at December 31, 2015Held forTrading

$


$Total

$Total

$

Financial assets at fair value through profit or loss - 219,630,034 219,630,034 -

Cash and cash equivalents - - - 25,663,014

Due from broker - - - 2,673,305

Accrued investment income - - - 1,112,499

Total - 219,630,034 219,630,034 29,448,818

Financial Liabilities as at December 31, 2015Held forTrading

$


$Total

$Total

$

Distributions payable - - - 3,893,874

Margin payable - - - 73,509,373

Due to broker - - - 661,771

Accounts payable and accrued liabilities - - - 271,192

Total - - - 78,336,210

The following table presents the net gains (losses) on financial instruments at FVTPL by category for theperiod ended June 30, 2016 and June 30, 2015:

Net gains Net losses

Category2016

$2015

$

Net gains (losses) on financial instruments at FVTPLHeld for Trading 216,229 -Designated at Inception 9,295,082 (11,271,042)

Total net gains (losses) on financial instruments at FVTPL 9,511,311 (11,271,042)

The Fund entered into various master netting arrangements in connection with its forward currencyand swap derivative contracts. These agreements, such as the International Swaps and DerivativesAssociation agreements, do meet the criteria for offsetting in the Statements of Financial Position andallow for the related amounts to be settled on a net basis.



Other financial assets and financial liabilities do not meet the criteria for offsetting but may be set offunder certain circumstances, such as bankruptcy or termination of the contracts. The following tablepresents the recognized financial instruments that are offset, or subject to enforceable master nettingagreements or other similar agreements, as at June 30, 2016 (None as at December 31, 2015). The "Netamount presented" column represents the amount after offsetting, as stated in the Fund's Statementsof Financial Position. The "Net" column represents what the impact on the Fund's Statements ofFinancial Position would be if all set-off rights were exercised.

Financial assets and liabilities Amounts offset Amounts not offset

Gross

assets/liabilities

Gross

assets/liabilities

offset

Net

amounts

presented

Financial

Instruments

Cash collateral

received Net

$ $ $ $ $ $

June 30, 2016

Net unrealized depreciation on forwardcontracts (252,212) 6,281 (245,931) - - (245,931)

(252,212) 6,281 (245,931) - - (245,931)

14. EVENTS AFTER STATEMENT OF FINANCIAL POSITION DATE

Management has evaluated subsequent events in the preparation of the Fund's financial statements andhas determined that other than the items listed herein, there are no events that require recognition ordisclosure in the interim financial statements.



FUND INFORMATION

MANAGER AND TRUSTEE

Brookfield Investment Management(Canada) Inc.

Gail CecilDirector, President & Chief Executive Officer

Jonathan TyrasDirector, Chief Financial Officer, Treasurer, andSecretary

Craig NobleDirector

INDEPENDENT REVIEW COMMITTEE

John P. Barratt (Chair)Corporate Director

James L. R. KellyPresidentEarth Power Inc.

Frank LochanCorporate Director

CONTACT INFORMATION

Brookfield Global Infrastructure Securities Income Fund welcomes inquiries from Unitholders,analysts, media representatives or other interested parties.

Investment Manager

Brookfield Investment Management Inc.Brookfield Place250 Vesey Street, 15th FloorNew York, New York10281-1023t. 855.777.8001w. www.brookfieldim.com

Transfer Agent and Registrar

Unitholder inquiries relating to distributions,address changes and Unitholder accountinformation should be directed to the Fund’sTransfer Agent:Computershare Trust Company of Canada100 University Avenue, 8th FloorToronto, ON M5J 2Y1, Canadat. 1-800-564-6253 (U.S. & Canada)t. 1-514-982-7555 (International)f. 1-888-453-0330w. www.computershare.com



http://www.brookfieldim.com

http://www.computershare.com



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[THIS PAGE IS INTENTIONALLY LEFT BLANK]/media/Files/B/... · 2019-09-25 · 486,000 Snam SpA 3,666,796 3,758,419 2.10 ... 2016 Interim Financial Statements | 7. SCHEDULE OF DERIVATIVE