NEW YORK, NEW YORK -- (Marketwire) -- 03/28/13 -- Brookfield today announced the completion of a $420 million common stock offering for the Brookfield Mortgage Opportunity Income Fund Inc., a newly-organized, diversified closed-end management investment company (the "Fund"). Assuming full exercise of the underwriters' overallotment option, which may or may not occur, the Fund will have raised approximately $483 million. The Fund's shares commenced trading on the NYSE on Tuesday, March 26, under the symbol "BOI."
The completion of this offering brings the total capital raised thus far in 2013 to over $1.2 billion across Brookfield's public securities strategies, reflecting the continued acceleration of market demand for Real Asset investments.
The Fund will invest primarily in a portfolio of mortgage-related securities. The Fund's investment objective is to provide high total investment return by providing a high level of current income and the potential for capital appreciation.
"We believe the current mortgage securities market is characterized by investments that are poised to benefit from a real estate recovery, but remain fundamentally undervalued. At a time when security selection is paramount, Brookfield's experience as one of the world's largest owners and operators of real estate may provide a competitive advantage in identifying the most attractive opportunities," said Mr. Kim G. Redding, Chief Executive Officer and Co-Chief Investment Officer of Brookfield Investment Management Inc., Brookfield's registered investment advisor and manager of the Fund.
Mr. Redding continued, "The successful completion of this $420 million common stock offering demonstrates the high level of market interest in Real Asset investment opportunities, a trend we are witnessing across our public securities strategies."
The Lead Portfolio Manager of the Fund is Ms. Michelle Russell-Dowe, who brings 18 years of experience to her role. The Fund's Co-Portfolio Managers are Mr. Jeffrey Williams, CFA, with 26 years of experience and Mr. Anthony Breaks, CFA, who has 17 years of experience.
Ms. Russell-Dowe said, "We seek to capitalize on a real estate recovery that is gaining momentum. We believe the potential for recovery is undervalued, as forecasters are just beginning to adjust their expectations for positive underpinnings in housing inventory and demand. Among investments with exposure to the real estate recovery, we believe mortgage-related securities remain relatively underappreciated. In seeking to identify and differentiate these opportunities, Brookfield combines its experience as an owner and operator of real estate assets with a history of investment in mortgage securities."
The initial public offering was co-led by Wells Fargo Securities, LLC and UBS Securities LLC.
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 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.
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. Brookfield Mortgage Opportunity Income Fund Inc. is managed by Brookfield Investment Management Inc.
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.
As the Fund is newly organized, its shares have no history of public trading. Shares of closed-end investment companies frequently trade at a discount to their net asset value, which may increase investors' risk of loss. This risk may be greater for investors expecting to sell their shares in a relatively short period after the completion of this public offering. There are risks associated with an investment in the Fund. Investors should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. The prospectus, which contains this and other information about the Fund, should be read carefully before investing. A copy of the prospectus can be obtained from Brookfield Investment Management Inc. by calling 1-866-435-3403. An investment in the Fund should not constitute a complete investment program.
There is no assurance that the Fund will achieve its investment objective.
Brookfield Mortgage Opportunity Income Fund Inc.
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