TORONTO, ONTARIO -- (Marketwire) -- 03/27/13 -- Brookfield High Yield Strategic Income Fund (TSX: BHY.UN) and Brookfield New Horizons Income Fund (CNSX: BIF.UN) responded today to the recent Federal Budget provisions with respect to character conversion transactions. On March 21, 2013, the Minister of Finance announced proposed measures (the "Measures") which would affect certain tax benefits gained by taxable Canadian unitholders of investment funds, such as Brookfield High Yield Strategic Income Fund and Brookfield New Horizons Income Fund (collectively, the "Funds"), that utilize forward purchase and sale agreements to obtain exposure to an underlying reference portfolio. The Funds' forward purchase and sale agreements provide unitholders with tax-advantaged distributions which are generally return of capital and capital gains.
Based on its review to date, Brookfield Investment Management (Canada) Inc., the manager of the Funds, believes that the Funds and the tax characterization of distributions received by unitholders will be unaffected by the Measures until the expiration of the forward agreements in June 2017 and April 2016 for the Brookfield High Yield Strategic Income Fund and Brookfield New Horizons Income Fund, respectively. The manager continues to review the implications of the Measures to determine what actions, if any, are required. The manager will advise investors of any actions material to investors that it intends to take in response to the Measures as soon as decisions are made in this regard, or as circumstances otherwise warrant.
Brookfield Asset Management
Brookfield is a global alternative asset manager with over $175 billion in assets under management as of December 31, 2012. We have over a 100-year history of owning and operating assets with a focus on property, renewable power, infrastructure and private equity. We offer a range of public and private investment products and services, which leverage our expertise and experience and provide us with a distinct competitive advantage in the markets where we operate. On behalf of our clients, Brookfield is also an active investor in the public securities markets, where our experience extends over 30 years. Over this time, we have successfully developed several investment operations and built expertise in the management of institutional portfolios, retail mutual funds, and structured product investments.
Brookfield Investment Management
Through our registered investment advisor, Brookfield Investment Management, our public market activities complement our core competencies as a direct investor. These activities encompass global listed real estate and infrastructure equities, corporate high yield investments, opportunistic credit strategies and a dedicated insurance asset management division. Headquartered in New York, NY, Brookfield Investment Management maintains offices and investment teams in Toronto, Chicago, Boston and London.
The Fund uses its web site as a channel of distribution of material company information. Financial and other material information regarding the Fund is routinely posted on and accessible at www.brookfieldim.com.
Certain statements made in this news release that are not historical facts are referred to as "forward-looking statements" within the meaning of Canadian securities laws. Actual future results or occurrences may differ significantly from those anticipated in any forward-looking statements due to numerous factors. Generally, the words "believe," "expect," "intend," "estimate," "anticipate," "project," "will" and similar expressions identify the forward looking statements, which generally are not historical in nature. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ from the historical experience of Brookfield and each of their present expectations or projections. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. Brookfield and the closed end funds managed by Brookfield undertake no responsibility to update publicly or revise any forward-looking statements.
For more information, please visit www.brookfieldim.com.
Brookfield Investment Management
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