UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-22773
BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
(Exact name of registrant as specified in charter)
BROOKFIELD PLACE
250 VESEY STREET, 15th Floor
NEW YORK, NEW YORK 10281-1023
(Address of principal executive offices) (Zip code)
BRIAN F. HURLEY, PRESIDENT
BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
BROOKFIELD PLACE
250 VESEY STREET, 15th Floor
NEW YORK, NEW YORK 10281-1023
(Name and address of agent for service)
Registrants telephone number, including area code: (855) 777-8001
Date of fiscal year end: June 30, 2016
Date of reporting period: December 31, 2015
Item 1. Reports to Shareholders.
1 | A 3% yield spread change multiplied by a spread duration of 8 years is approximately a 24% change in price, all other things equal. |
PORTFOLIO STATISTICS | |
Annualized distribution rate1 | 10.34% |
Weighted average coupon | 5.33% |
Average portfolio dollar price (excluding interest-only securities) | $ 80.50 |
Percentage of fixed securities (excluding interest-only securities)2 | 45.3% |
Percentage of floating securities (excluding interest-only securities)2 | 54.7% |
Percentage of leveraged assets | 26.07% |
Total number of holdings | 152 |
ASSET BY COUPON TYPE DISTRIBUTION2 | |
Residential Mortgage Related Holdings - Fixed Rate | 13.8% |
Residential Mortgage Related Holdings - Floating Rate | 27.0% |
Subprime - Fixed Rate | 0.9% |
Subprime - Floating Rate | 19.8% |
Commercial Mortgage Related Holdings - Fixed Rate | 13.3% |
Commercial Mortgage Related Holdings - Floating Rate | 3.8% |
Collateralized Loan Obligation - Floating Rate | 0.7% |
Corporate Bonds - Fixed Rate | 6.4% |
Loans - Fixed Rate | 1.3% |
Loans - Floating Rate | 3.4% |
Equities and Preferred Equity | 1.9% |
Cash and Other | 7.7% |
Total | 100.0% |
ASSET ALLOCATION3 | |
Residential Mortgage Related Holdings | 87.7% |
Commercial Mortgage Related Holdings | 26.6% |
Interest-Only Securities | 0.7% |
Corporate Bonds | 8.7% |
Preferred Stocks | 2.6% |
Collateralized Loan Obligation | 1.0% |
Liabilities in Excess of Other Assets | (27.3)% |
Total | 100.0% |
1 | The distribution rate referenced above is calculated as the annualized amount of the most recent monthly distribution declared divided by December 31, 2015 stock price. This calculation does not include any non-income items such as loan proceeds or borrowings. The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. Year-to-date through December 31, 2015, 12.6% of the Fund's distributions is a return of capital. |
2 | Coupon types are expressed as a percentage of total investments (by market value) including cash and the unrealized appreciation (depreciation) on derivatives and will vary over time. |
3 | Percentages are based on net assets. |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |||
RESIDENTIAL MORTGAGE RELATED HOLDINGS – 87.7% | ||||||
Non-Agency Mortgage-Backed Securities – 87.7% | ||||||
ACE Securities Corp. Home Equity Loan Trust | ||||||
Series 2006-OP1, Class A2D
1,2 |
0.67% | 04/25/36 | $ 6,740 | $ 4,580,531 | ||
Series 2005-ASP1, Class M1
1,2 |
1.11 | 09/25/35 | 10,131 | 8,110,799 | ||
Alternative Loan Trust | ||||||
Series 2007-OA3, Class 1A1
1,2,3 |
0.57 | 04/25/47 | 10,006 | 8,407,197 | ||
Series 2007-2CB, Class 2A11
1 |
0.83 | 03/25/37 | 6,824 | 4,574,574 | ||
Series 2006-19CB, Class A9
1 |
1.13 | 08/25/36 | 5,620 | 3,928,171 | ||
Series 2005-50CB, Class 1A1
3 |
5.50 | 11/25/35 | 3,774 | 3,670,923 | ||
Series 2007-15CB, Class A5
|
5.75 | 07/25/37 | 2,219 | 2,027,633 | ||
Series 2007-15CB, Class A2
|
5.75 | 07/25/37 | 2,411 | 2,202,796 | ||
Series 2006-45T1, Class 2A5
3 |
6.00 | 02/25/37 | 4,986 | 4,308,525 | ||
Series 2006-29T1, Class 2A6
|
6.50 | 10/25/36 | 4,989 | 4,651,633 | ||
Series 2006-23CB, Class 2A7
1,4 |
26.69 | 08/25/36 | 2,377 | 3,634,451 | ||
Asset-Backed Securities Corporation Home Equity Loan Trust | ||||||
Series 2007-HE1, Class A4
1,2 |
0.57 | 12/25/36 | 5,213 | 4,216,464 | ||
Banc of America Funding Trust | ||||||
Series 2006-G, Class 3A2
1 |
2.92 | 07/20/36 | 6,699 | 6,587,449 | ||
BCAP LLC Trust | ||||||
Series 2010-RR6, Class 1910
1,2,5 |
0.74 | 11/26/35 | 8,440 | 5,772,548 | ||
Series 2010-RR5, Class 5A10
1,2,5 |
0.74 | 11/26/35 | 6,733 | 4,561,616 | ||
Series 2012-RR4, Class 5A6
1,5 |
2.41 | 05/26/36 | 3,820 | 2,647,176 | ||
Series 2009-RR11, Class 3A2
1,5 |
2.63 | 01/26/36 | 3,832 | 3,428,012 | ||
Series 2013-RR2, Class 3A2
1,5 |
5.22 | 03/26/36 | 7,350 | 7,093,485 | ||
BXHTL Mortgage Trust | ||||||
Series 2015-JWRZ, Class DR2
1,5 |
4.12 | 05/15/29 | 3,750 | 3,602,197 | ||
Carefree Portfolio Trust | ||||||
Series 2014-CARE, Class F
1,2,5 |
3.01 | 11/15/19 | 5,580 | 5,427,930 | ||
CHL Mortgage Pass-Through Trust | ||||||
Series 2006-HYB5, Class 3A1B
1 |
2.74 | 09/20/36 | 5,843 | 5,063,932 | ||
Series 2006-HYB5, Class 3A1A
1 |
2.74 | 09/20/36 | 1,270 | 1,100,196 | ||
Citigroup Mortgage Loan Trust | ||||||
Series 2012-6, Class 2A2
5 |
2.43 | 08/25/36 | 8,750 | 7,300,262 | ||
Series 2007-AR5, Class 1A2A
1,3 |
2.87 | 04/25/37 | 3,761 | 3,410,070 | ||
Series 2009-6, Class 19A2
5 |
6.00 | 03/25/36 | 4,548 | 3,310,096 | ||
Countrywide Home Loan Mortgage Pass-Through Trust | ||||||
Series 2006-OA17, Class 1A1A
1,2,3 |
0.62 | 12/20/46 | 5,386 | 3,977,028 | ||
Series 2006-OA1, Class 2A1
1,2,3 |
0.64 | 03/20/46 | 6,953 | 5,228,863 | ||
Series 2006-OA2, Class A1
1,2,3 |
0.64 | 05/20/46 | 5,528 | 4,187,896 | ||
Credit Suisse Mortgage Trust | ||||||
Series 2011-10R, Class 3A2
5 |
2.74 | 09/27/36 | 5,095 | 4,259,757 | ||
Series 2010-19R, Class 5A4
5 |
3.25 | 08/27/36 | 10,308 | 10,053,119 | ||
First Horizon Alternative Mortgage Securities Trust | ||||||
Series 2005-FA8, Class 1A6
1 |
1.08 | 11/25/35 | 3,897 | 2,727,359 | ||
Series 2005-FA9, Class A1
1,3 |
1.13 | 12/25/35 | 3,658 | 2,616,945 | ||
GMACM Home Equity Loan Trust | ||||||
Series 2007-HE2, Class A3
|
6.19 | 12/25/37 | 4,733 | 4,644,986 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |||
RESIDENTIAL MORTGAGE RELATED HOLDINGS (continued) | ||||||
Greenpoint Manufactured Housing | ||||||
Series 1999-1, Class A5
|
6.77% | 08/15/29 | $ 6,276 | $ 6,118,783 | ||
Series 1999-3, Class IA7
|
7.27 | 06/15/29 | 4,495 | 4,431,756 | ||
GSAMP Trust | ||||||
Series 2006-NC2, Class A2C
1,2 |
0.58 | 06/25/36 | 898 | 532,666 | ||
Series 2006-HE8, Class A2C
1,2 |
0.60 | 01/25/37 | 9,417 | 7,652,942 | ||
Home Equity Asset Trust | ||||||
Series 2006-7, Class 2A3
1,2 |
0.58 | 01/25/37 | 10,084 | 7,777,159 | ||
Hyatt Hotel Portfolio Trust | ||||||
Series 2015-HYT, Class E
1,2,3,5 |
4.23 | 11/15/29 | 4,000 | 3,971,696 | ||
IndyMac INDA Mortgage Loan Trust | ||||||
Series 2007-AR1, Class 1A1
1,3 |
2.92 | 03/25/37 | 3,721 | 3,438,249 | ||
Series 2007-AR3, Class 1A1
1,3 |
2.99 | 07/25/37 | 5,477 | 4,845,123 | ||
IXIS Real Estate Capital Trust | ||||||
Series 2007-HE1, Class A1
1,2 |
0.49 | 05/25/37 | 3,260 | 1,105,882 | ||
Series 2007-HE1, Class A2
1,2 |
0.54 | 05/25/37 | 5,190 | 1,775,981 | ||
Series 2006-HE2, Class A3
1,2 |
0.59 | 08/25/36 | 8,098 | 3,353,209 | ||
Series 2007-HE1, Class A3
1,2 |
0.59 | 05/25/37 | 1,600 | 553,016 | ||
Series 2007-HE1, Class A4
1,2 |
0.66 | 05/25/37 | 3,034 | 1,061,019 | ||
Series 2006-HE1, Class A4
1,2 |
0.73 | 03/25/36 | 703 | 440,502 | ||
JP Morgan Resecuritization Trust | ||||||
Series 2012-2, Class 1A8
5 |
2.48 | 03/26/37 | 5,821 | 4,763,565 | ||
Lehman ABS Manufactured Housing Contract Trust | ||||||
Series 2001-B, Class M1
|
6.63 | 04/15/40 | 5,300 | 5,660,125 | ||
Master Asset Backed Securities Trust | ||||||
Series 2006-NC3, Class A3
1,2 |
0.53 | 10/25/36 | 2,316 | 1,318,835 | ||
Series 2006-NC2, Class A4
1,2 |
0.58 | 08/25/36 | 10,578 | 5,015,688 | ||
Series 2006-NC3, Class A4
1,2 |
0.59 | 10/25/36 | 8,084 | 4,646,904 | ||
Series 2006-HE5, Class A3
1,2 |
0.59 | 11/25/36 | 14,576 | 9,099,031 | ||
Series 2005-NC2, Class A4
1,2 |
1.13 | 11/25/35 | 7,594 | 5,141,233 | ||
Mid-State Trust X | ||||||
Series 10, Class B
|
7.54 | 02/15/36 | 3,250 | 3,521,383 | ||
Nomura Resecuritization Trust | ||||||
Series 2013-1R, Class 3A12
1,2,5 |
0.58 | 10/26/36 | 16,637 | 14,333,584 | ||
Series 2014-1R, Class 2A11
1,5 |
0.69 | 02/26/37 | 15,265 | 8,000,953 | ||
Series 2015-1R, Class 4A5
1,5 |
2.22 | 06/25/37 | 1,762 | 849,095 | ||
Series 2014-6R, Class 5A7
1,5 |
2.61 | 04/26/37 | 4,949 | 3,194,368 | ||
Series 2015-4R, Class 3A8
1,5 |
2.64 | 01/26/36 | 9,643 | 6,683,448 | ||
Series 2015-1R, Class 4A7
1,5 |
2.74 | 12/26/37 | 2,820 | 1,417,964 | ||
Series 2015-1R, Class 3A7
1,5 |
2.89 | 03/26/37 | 6,131 | 3,454,027 | ||
Series 2014-2R, Class 1A7
1,5 |
3.20 | 01/26/36 | 3,356 | 2,404,046 | ||
Series 2015-6R, Class 2A4
1,5 |
7.90 | 01/26/37 | 7,935 | 6,328,180 | ||
RALI Trust | ||||||
Series 2007-QO3, Class A1
1,2,3 |
0.59 | 03/25/47 | 4,495 | 3,546,197 | ||
Series 2006-QO7, Class 2A1
1,3 |
1.14 | 09/25/46 | 9,066 | 6,525,490 | ||
RBSSP Resecuritization Trust | ||||||
Series 2009-13, Class 7A2
5 |
5.75 | 01/26/36 | 1,500 | 1,556,361 | ||
Residential Asset Securitization Trust | ||||||
Series 2005-A13, Class 1A1
1 |
1.13 | 10/25/35 | 3,743 | 2,791,149 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |||
RESIDENTIAL MORTGAGE RELATED HOLDINGS (continued) | ||||||
RFMSI Trust | ||||||
Series 2007-S3, Class 1A5
3 |
5.50% | 03/25/37 | $ 4,970 | $ 4,377,939 | ||
Securitized Asset Backed Receivables LLC Trust | ||||||
Series 2006-HE2, Class A2C
1,2 |
0.58 | 07/25/36 | 8,534 | 4,475,611 | ||
Series 2006-NC3, Class A2B
1,2 |
0.58 | 09/25/36 | 8,339 | 4,109,584 | ||
Series 2007-NC1, Class A2B
1,2 |
0.58 | 12/25/36 | 769 | 431,215 | ||
Series 2007-BR4, Class A2B
1,2 |
0.63 | 05/25/37 | 6,325 | 3,779,799 | ||
Series 2007-NC1, Class A2C
1,2 |
0.64 | 12/25/36 | 246 | 138,993 | ||
Series 2007-BR4, Class A2C
1,2 |
0.72 | 05/25/37 | 7,097 | 4,292,904 | ||
Washington Mutual Mortgage Pass-Through Certificates Trust | ||||||
Series 2007-OA1, Class A1A
1,3 |
0.99 | 02/25/47 | 5,259 | 4,058,955 | ||
Series 2007-HY5, Class 3A1
|
2.07 | 05/25/37 | 6,612 | 5,721,019 | ||
Series 2006-AR10, Class 1A2
|
2.41 | 09/25/36 | 2,770 | 2,497,748 | ||
Series 2007-HY5, Class 3A1
1 |
4.44 | 05/25/37 | 2,055 | 1,807,188 | ||
Wells Fargo Mortgage Backed Securities Trust | ||||||
Series 2005-2, Class 1B1
|
5.50 | 04/25/35 | 6,769 | 5,521,411 | ||
Total Non-Agency Mortgage-Backed Securities | 339,836,594 | |||||
Total RESIDENTIAL MORTGAGE RELATED HOLDINGS (Cost
$355,059,100) |
339,836,594 | |||||
COMMERCIAL MORTGAGE RELATED HOLDINGS – 26.6% | ||||||
Class B Notes – 1.8% | ||||||
885 Trademark 6,7,8 (Acquired 11/15/15, Cost $1,800,000,
0.5%) |
10.23 | 10/01/19 | 1,800 | 1,800,000 | ||
Browns Bridge 6,7,8 (Acquired 11/15/15, Cost $118,000,
0.0%) |
9.23 | 11/01/20 | 118 | 118,000 | ||
Cedar Park 6,7,8 (Acquired 06/25/15, Cost $600,000,
0.2%) |
11.00 | 05/31/17 | 600 | 600,000 | ||
Cherokee 6,7,8 (Acquired 11/15/15, Cost $243,000,
0.1%) |
9.23 | 11/01/20 | 243 | 243,000 | ||
Concord 6,7,8 (Acquired 11/15/15, Cost $312,873,
0.1%) |
9.23 | 11/01/20 | 313 | 312,873 | ||
Crossroads 6,7,8 (Acquired 11/15/15, Cost $170,000,
0.0%) |
9.23 | 11/01/20 | 170 | 170,000 | ||
Fayetteville 6,7,8 (Acquired 11/15/15, Cost $48,000,
0.0%) |
9.23 | 11/01/20 | 48 | 48,000 | ||
Holiday Inn 6,7,8 (Acquired 06/25/15, Cost $2,000,000,
0.5%) |
10.08 | 07/01/20 | 2,000 | 2,000,000 | ||
Lee & White 6,7,8 (Acquired 11/15/15, Cost $91,000,
0.0%) |
9.23 | 11/01/20 | 91 | 91,000 | ||
Marshalls 6,7,8 (Acquired 11/15/15, Cost $386,000,
0.1%) |
9.23 | 11/01/20 | 386 | 386,000 | ||
Meadows 6,7,8 (Acquired 11/15/15, Cost $68,000,
0.0%) |
9.23 | 11/01/20 | 68 | 68,000 | ||
Moreland Avenue 6,7,8 (Acquired 11/15/15, Cost $225,000,
0.1%) |
9.23 | 11/01/20 | 225 | 225,000 | ||
North River 6,7,8 (Acquired 11/15/15, Cost $246,000,
0.1%) |
9.23 | 11/01/20 | 246 | 246,000 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |||
COMMERCIAL MORTGAGE RELATED HOLDINGS (continued) | ||||||
Town and Country 6,7,8 (Acquired 11/15/15, Cost $492,000,
0.1%) |
9.23% | 11/01/20 | $ 492 | $ 492,000 | ||
Total Class B Notes | 6,799,873 | |||||
Commercial Mortgage-Backed Securities – 23.0% | ||||||
Banc of America Commercial Mortgage Trust | ||||||
Series 2006-6, Class AJ
3 |
5.42 | 10/10/45 | 14,010 | 14,206,130 | ||
Series 2007-3, Class AJ
3 |
5.74 | 06/10/49 | 10,600 | 10,740,044 | ||
Commercial Mortgage Trust | ||||||
Series 2014-KYO, Class F
1,3,5 |
3.92 | 06/11/27 | 7,620 | 7,540,514 | ||
Series 2007-GG11, Class AJ
3 |
6.24 | 12/10/49 | 10,642 | 10,789,758 | ||
Del Coronado Trust | ||||||
Series 2013-HDMZ, Class M
1,5 |
5.33 | 03/15/18 | 10,800 | 10,780,560 | ||
LB-UBS Commercial Mortgage Trust | ||||||
Series 2007-C7, Class AJ
3 |
6.45 | 09/15/45 | 10,000 | 10,299,996 | ||
Morgan Stanley Capital I, Inc. | ||||||
Series 1998-HF1, Class K
5 |
6.19 | 03/15/30 | 3,015 | 2,954,760 | ||
Wachovia Bank Commercial Mortgage Trust | ||||||
Series 2007-C30, Class AJ
3 |
5.41 | 12/15/43 | 11,500 | 11,516,927 | ||
Series 2007-C33, Class AJ
3 |
6.15 | 02/15/51 | 10,250 | 10,446,337 | ||
Total Commercial Mortgage-Backed Securities | 89,275,026 | |||||
Mezzanine Loan – 1.8% | ||||||
BOCA Mezzanine
|
8.20 | 08/09/16 | 7,107 | 7,106,802 | ||
Total Mezzanine Loan | 7,106,802 | |||||
Total COMMERCIAL MORTGAGE RELATED HOLDINGS (Cost
$102,822,905) |
103,181,701 | |||||
INTEREST-ONLY SECURITIES – 0.7% | ||||||
Federal Home Loan Mortgage Corporation Strips | ||||||
Series 304, Class C60
9 |
3.50 | 12/15/42 | 7,925 | 1,585,348 | ||
Federal National Mortgage Association REMICS | ||||||
Series 2013-32, Class IG
9 |
3.50 | 04/25/33 | 6,860 | 991,200 | ||
JP Morgan Resecuritization Trust | ||||||
Series 2014-5, Class AX4
5,9 |
0.50 | 10/25/29 | 19,094 | 316,046 | ||
Total INTEREST-ONLY SECURITIES (Cost $3,637,484)
|
2,892,594 | |||||
CORPORATE BONDS – 8.7% | ||||||
Automotive – 0.4% | ||||||
American Axle & Manufacturing, Inc.
3 |
6.63 | 10/15/22 | 1,300 | 1,361,750 | ||
Basic Industry – 0.7% | ||||||
Arch Coal, Inc.
10 |
7.25 | 06/15/21 | 1,750 | 13,300 | ||
Hexion, Inc.
3 |
9.00 | 11/15/20 | 1,350 | 516,375 | ||
INEOS Group Holdings SA
3,5,11 |
6.13 | 08/15/18 | 1,350 | 1,336,500 | ||
PulteGroup, Inc.
3 |
6.38 | 05/15/33 | 1,000 | 1,015,000 | ||
Total Basic Industry | 2,881,175 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |||
CORPORATE BONDS (continued) | ||||||
Consumer Goods – 0.7% | ||||||
ACCO Brands Corp.
3 |
6.75% | 04/30/20 | $ 1,350 | $ 1,390,500 | ||
Post Holdings, Inc.
3 |
7.38 | 02/15/22 | 1,300 | 1,355,250 | ||
Total Consumer Goods | 2,745,750 | |||||
Energy – 0.9% | ||||||
BreitBurn Energy Partners LP
|
7.88 | 04/15/22 | 1,325 | 238,500 | ||
Calfrac Holdings LP
3,5 |
7.50 | 12/01/20 | 1,350 | 536,625 | ||
EV Energy Partners LP
3 |
8.00 | 04/15/19 | 1,250 | 625,000 | ||
Ferrellgas Partners LP
3 |
8.63 | 06/15/20 | 700 | 658,000 | ||
Global Partners LP
3 |
6.25 | 07/15/22 | 500 | 400,000 | ||
ION Geophysical Corp.
|
8.13 | 05/15/18 | 500 | 250,000 | ||
Linn Energy LLC
|
7.75 | 02/01/21 | 1,000 | 145,000 | ||
W&T Offshore, Inc.
|
8.50 | 06/15/19 | 1,250 | 437,500 | ||
Total Energy | 3,290,625 | |||||
Healthcare – 1.4% | ||||||
CHS/Community Health Systems, Inc.
3 |
7.13 | 07/15/20 | 1,300 | 1,295,125 | ||
HCA, Inc.
3 |
5.88 | 05/01/23 | 1,350 | 1,383,750 | ||
inVentiv Health, Inc.
3 |
10.00 | 08/15/18 | 335 | 331,650 | ||
Kindred Healthcare, Inc.
3 |
6.38 | 04/15/22 | 1,150 | 954,500 | ||
Service Corporation International
3 |
8.00 | 11/15/21 | 1,200 | 1,410,000 | ||
Total Healthcare | 5,375,025 | |||||
Leisure – 1.4% | ||||||
Boyd Gaming Corp.
3 |
9.00 | 07/01/20 | 1,300 | 1,378,000 | ||
Chester Downs & Marina LLC
5 |
9.25 | 02/01/20 | 975 | 694,687 | ||
Isle of Capri Casinos, Inc.
3 |
5.88 | 03/15/21 | 850 | 867,000 | ||
MGM Resorts International
3 |
7.75 | 03/15/22 | 1,250 | 1,328,125 | ||
Palace Entertainment Holdings LLC
3,5 |
8.88 | 04/15/17 | 1,250 | 1,225,000 | ||
Total Leisure | 5,492,812 | |||||
Media – 0.7% | ||||||
CCO Holdings LLC
|
5.75 | 01/15/24 | 550 | 565,125 | ||
Cumulus Media Holdings, Inc.
|
7.75 | 05/01/19 | 600 | 202,500 | ||
Lamar Media Corp.
3 |
5.38 | 01/15/24 | 1,350 | 1,390,500 | ||
Mediacom Broadband LLC
|
6.38 | 04/01/23 | 350 | 342,125 | ||
Neptune Finco Corp.
5 |
10.88 | 10/15/25 | 325 | 340,438 | ||
Total Media | 2,840,688 | |||||
Retail – 0.5% | ||||||
L Brands, Inc.
3 |
7.60 | 07/15/37 | 900 | 945,000 | ||
New Albertsons, Inc.
|
7.75 | 06/15/26 | 850 | 782,000 | ||
Total Retail | 1,727,000 | |||||
Services – 0.6% | ||||||
Avis Budget Car Rental LLC
|
5.50 | 04/01/23 | 1,400 | 1,403,500 | ||
Casella Waste Systems, Inc.
3 |
7.75 | 02/15/19 | 1,000 | 992,500 | ||
Total Services | 2,396,000 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |||
CORPORATE BONDS (continued) | ||||||
Telecommunications – 1.4% | ||||||
CenturyLink, Inc.
|
7.65% | 03/15/42 | $ 1,000 | $ 765,000 | ||
FairPoint Communications, Inc.
3,5 |
8.75 | 08/15/19 | 925 | 911,125 | ||
Frontier Communications Corp.
3 |
7.13 | 01/15/23 | 1,350 | 1,164,375 | ||
Intelsat Luxembourg SA
11 |
7.75 | 06/01/21 | 650 | 303,875 | ||
Qwest Capital Funding, Inc.
|
6.88 | 07/15/28 | 250 | 195,000 | ||
T-Mobile USA, Inc.
3 |
6.63 | 04/01/23 | 1,350 | 1,377,000 | ||
Windstream Services LLC
|
7.50 | 06/01/22 | 1,000 | 767,500 | ||
Total Telecommunications | 5,483,875 | |||||
Total CORPORATE BONDS (Cost
$42,897,686) |
33,594,700 |
Shares | Value | |||||
PREFERRED STOCKS – 2.6% | ||||||
Finance & Investment – 2.4% | ||||||
Kimco Realty Corp., 6.00%
|
157,837 | $ 4,083,243 | ||||
Public Storage, 6.00%
|
200,000 | 5,380,000 | ||||
Total Finance & Investment | 9,463,243 | |||||
Telecommunications – 0.2% | ||||||
Regency Centers Corp., 6.63%
|
21,213 | 561,084 | ||||
Total PREFERRED STOCKS (Cost
$9,502,399) |
10,024,327 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |||
COLLATERALIZED LOAN OBLIGATION – 1.0% | ||||||
Collateralized Loan Obligation – 1.0% | ||||||
1776 CLO Ltd.
1,5 |
4.84% | 05/08/20 | $ 4,000 | $ 3,670,520 | ||
Total COLLATERALIZED LOAN OBLIGATION (Cost
$3,970,000) |
3,670,520 | |||||
Total Investments – 127.3% (Cost $517,889,574)
|
493,200,436 | |||||
Liabilities in Excess of Other Assets – (27.3)%
|
(105,619,277) | |||||
TOTAL NET ASSETS – 100.0%
|
$ 387,581,159 |
The following notes should be read in conjunction with the accompanying Schedule of Investments. | |
1 | — Variable rate security – Interest rate shown is the rate in effect as of December 31, 2015. |
2 | — Security is a “step up” bond where the coupon increases or steps up at a predetermined date. |
3 | — Portion or entire principal amount delivered as collateral for reverse repurchase agreements. |
4 | — Security is an inverse floating rate bond. |
5 | — Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may only be resold in transactions exempt from registration, normally to qualified institutional buyers. As of December 31, 2015, the total value of all such securities was $144,720,260 or 37.3% of net assets. |
6 | — Private Placement. |
7 | — Security fair valued in good faith pursuant to the fair value procedures adopted by the Board of Directors. As of December 31, 2015, the total value of all such securities was $6,799,873 or 1.8% of net assets. |
8 | — Restricted Illiquid Securities - Securities that the Adviser has deemed illiquid pursuant to procedures adopted by the Fund's Board of Directors. The values in the parenthesis represent the acquisition date, cost and the percentage of net assets, respectively. As of December 31, 2015, the total value of all such securities was $6,799,873 or 1.8% of net assets. |
9 | — Interest rate is based on the notional amount of the underlying mortgage pools. |
10 | — Issuer is currently in default on its regularly scheduled interest payment. |
11 | — Foreign security or a U.S. security of a foreign company. |
Assets: | |
Investments in securities, at value (cost
$517,889,574) |
$493,200,436 |
Cash |
24,594,048 |
Cash on deposit with brokers for futures and reverse repurchase
agreements |
5,420,579 |
Interest and dividend
receivable |
2,019,421 |
Principal paydown
receivable |
374,217 |
Receivable for variation
margin |
228,058 |
Receivable for investments
sold |
56,405 |
Prepaid
expenses |
21,834 |
Total
assets |
525,914,998 |
Liabilities: | |
Reverse repurchase agreements (Note
6) |
137,116,000 |
Interest payable for reverse repurchase agreements (Note
6) |
509,590 |
Principal payup
payable |
3,810 |
Payable for variation
margin |
92,078 |
Investment advisory fee payable (Note
4) |
446,968 |
Administration fee payable (Note
4) |
67,045 |
Directors' fee
payable |
9,669 |
Accrued
expenses |
88,679 |
Total
liabilities |
138,333,839 |
Commitments and contingencies (Note
10) |
|
Net
Assets |
$387,581,159 |
Composition of Net Assets: | |
Capital stock, at par value ($0.001 par value, 1,000,000,000 shares authorized) (Note
7) |
$ 22,714 |
Additional paid-in capital (Note
7) |
424,879,883 |
Distributions in excess of net investment
income |
(2,416,999) |
Accumulated net realized loss on investment and futures
transactions |
(10,396,044) |
Net unrealized depreciation on investments and
futures |
(24,508,395) |
Net assets applicable to capital stock
outstanding |
$387,581,159 |
Shares Outstanding and Net Asset Value Per Share: | |
Common shares
outstanding |
22,713,931 |
Net asset value per
share |
$ 17.06 |
Investment Income (Note 2): | |
Interest |
$ 19,347,537 |
Dividends |
356,334 |
Total
income |
19,703,871 |
Expenses: | |
Investment advisory fees (Note
4) |
2,769,005 |
Administration fees (Note
4) |
415,351 |
Reports to
stockholders |
58,562 |
Directors'
fees |
58,353 |
Fund accounting servicing
fees |
57,288 |
Legal
fees |
38,024 |
Registration
fees |
36,144 |
Audit and tax
services |
35,077 |
Insurance |
18,422 |
Miscellaneous |
15,072 |
Custodian
fees |
14,187 |
Transfer agent
fees |
8,814 |
Total operating
expenses |
3,524,299 |
Interest expense on reverse repurchase agreements (Note
6) |
1,209,435 |
Total
expenses |
4,733,734 |
Net investment
income |
14,970,137 |
Realized and Unrealized Gain (Loss) on Investments: | |
Net realized loss
on: |
|
Investment
transactions |
(5,038,318) |
Futures
transactions |
(499,177) |
Net realized
loss |
(5,537,495) |
Net change in unrealized (appreciation) depreciation
on: |
|
Investments |
(17,327,246) |
Futures |
236,440 |
Net change in unrealized
depreciation |
(17,090,806) |
Net realized and unrealized
loss |
(22,628,301) |
Net decrease in net assets resulting from
operations |
$ (7,658,164) |
For
the Six Months Ended December 31, 2015 (Unaudited) |
For
the Fiscal Year Ended June 30, 2015 | ||
Increase (Decrease) in Net Assets Resulting from Operations: | |||
Net investment
income |
$ 14,970,137 | $ 32,336,058 | |
Net realized loss on investment and futures
transactions |
(5,537,495) | (2,171,922) | |
Net change in unrealized depreciation on investments and
futures |
(17,090,806) | (18,943,553) | |
Net increase (decrease) in net assets resulting from
operations |
(7,658,164) | 11,220,583 | |
Distributions to Stockholders: | |||
Net investment
income |
(17,321,644) | (32,705,299) | |
Return of
capital |
— | (1,937,989) | |
Total distributions
paid |
(17,321,644) | (34,643,288) | |
Total decrease in net
assets |
(24,979,808) | (23,422,705) | |
Net Assets: | |||
Beginning of
period |
412,560,967 | 435,983,672 | |
End of
period |
$387,581,159 | $412,560,967 | |
Distributions in excess of net investment
income |
$ (2,416,999) | $ (65,492) |
Increase (Decrease) in Cash: | |
Cash flows provided by (used for) operating activities: | |
Net decrease in net assets resulting from
operations |
$ (7,658,164) |
Adjustments to reconcile net decrease in net assets resulting from operations to net cash provided by operating activities: | |
Purchases of long-term portfolio investments and principal
payups |
(33,189,609) |
Proceeds from disposition of long-term portfolio investments and principal
paydowns |
79,658,889 |
Decrease in cash on deposit with brokers for futures and reverse repurchase
agreements |
1,949,900 |
Decrease in interest and dividend
receivable |
161,453 |
Increase in principal paydown
receivable |
(98,409) |
Increase in receivable for investments
sold |
(56,405) |
Increase in receivable for variation
margin |
(199,715) |
Increase in prepaid
expenses |
(14,093) |
Decrease in interest payable for reverse repurchase
agreements |
(253,030) |
Increase in principal paydown
payable |
3,810 |
Increase in payable for variation
margin |
92,078 |
Decrease in investment advisory fee
payable |
(27,959) |
Decrease in administration fee
payable |
(4,194) |
Decrease in directors' fee
payable |
(970) |
Decrease in accrued
expenses |
(78,679) |
Net amortization on investments and paydown gains or losses on
investments |
(12,944,820) |
Net change in depreciation on
investments |
17,327,246 |
Net realized loss on investment
transactions |
5,038,318 |
Net cash provided by operating
activities |
49,705,647 |
Cash flows used for financing activities: | |
Net cash used for reverse repurchase
agreements |
(25,653,000) |
Distributions paid to
stockholders |
(17,321,644) |
Net cash used for financing
activities |
(42,974,644) |
Net increase in
cash |
6,731,003 |
Cash at beginning of
period |
17,863,045 |
Cash at end of
period |
$ 24,594,048 |
Supplemental Disclosure of Cash Flow Information: | |
Interest payments on the reverse repurchase agreements for the six months ended December 31, 2015 totaled $1,462,465. |
For the Six Months Ended December 31, | For the Fiscal Year Ended June 30, | For the period from March 26, 20131 through June 30, | |||||
2015
(Unaudited) |
2015 | 2014 | 2013 | ||||
Per Share Operating Performance: | |||||||
Net asset value, beginning of
period |
$ 18.16 | $ 19.19 | $ 18.33 | $ 19.102 | |||
Net investment
income |
0.66 3 | 1.42 3 | 1.32 | 0.17 | |||
Net realized and unrealized gain (loss) on investment and futures transactions
|
(1.00) | (0.92) | 1.07 | (0.69) | |||
Net increase (decrease) in net asset value resulting from
operations |
(0.34) | 0.50 | 2.39 | (0.52) | |||
Distributions from net investment
income |
(0.76) | (1.44) | (1.32) | (0.18) | |||
Return of capital
distributions |
— | (0.09) | (0.21) | (0.07) | |||
Total distributions
paid |
(0.76) | (1.53) | (1.53) | (0.25) | |||
Net asset value, end of
period |
$ 17.06 | $ 18.16 | $ 19.19 | $ 18.33 | |||
Market price, end of
period |
$ 14.75 | $ 15.81 | $ 17.60 | $ 18.46 | |||
Total Investment
Return† |
-1.82% 4 | -1.53% | 4.32% | -6.44% 4 | |||
Ratios to Average Net Assets/Supplementary Data: | |||||||
Net assets, end of period
(000s) |
$387,581 | $412,561 | $435,984 | $416,289 | |||
Operating expenses excluding interest
expense |
1.75% 5 | 1.74% | 1.48% | 1.44% 5 | |||
Interest
expense |
0.60% 5 | 0.58% | 0.22% | 0.00% 5,6 | |||
Total
expenses |
2.35% 5 | 2.32% | 1.70% | 1.44% 5 | |||
Net investment
income |
7.45% 5 | 7.59% | 7.10% | 3.36% 5 | |||
Portfolio turnover
rate |
6% 4 | 41% | 41% | 2% 4 | |||
Reverse repurchase agreements, end of period
(000s) |
$137,116 | $162,769 | $152,582 | $ 4,438 | |||
Asset Coverage per $1,000 unit of senior
indebtedness7 |
$ 3,827 | $ 3,535 | $ 3,857 | $94,801 |
† | Total investment return is computed based upon the New York Stock Exchange market price of the Fund's shares and excludes the effect of broker commissions. Distributions are assumed to be reinvested at the prices obtained under the Fund's dividend reinvestment plan. |
1 | Commencement of operations. |
2 | Net asset value, beginning of period, reflects a deduction of $0.90 per share sales charge from the initial public offering price of $20.00 per share. |
3 | Per share amounts presented are based on average shares outstanding throughout the period indicated. |
4 | Not annualized. |
5 | Annualized. |
6 | Interest expense ratio was less than 0.01%. |
7 | Calculated by subtracting the Fund's total liabilities (not including borrowings) from the Fund's total assets and dividing by the total number of senior indebtedness units, where one unit equals $1,000 of senior indebtedness. |
Level 1 - | quoted prices in active markets for identical assets or liabilities |
Level 2 - | quoted prices in markets
that are not active or other significant observable inputs (including, but not limited to: quoted prices for similar assets or liabilities, quoted prices based on recently executed transactions, interest rates, credit risk, etc.) |
Level 3 - | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of assets or liabilities) |
Valuation Inputs | Level 1 | Level 2 | Level 3(1) | Total | |||
Residential Mortgage Related
Holdings |
$ — | $ — | $ 339,836,594 | $ 339,836,594 | |||
Commercial Mortgage Related
Holdings |
— | — | 103,181,701 | 103,181,701 | |||
Interest-Only
Securities |
— | — | 2,892,594 | 2,892,594 | |||
Corporate
Bonds |
— | 33,594,700 | — | 33,594,700 | |||
Preferred
Stocks |
10,024,327 | — | — | 10,024,327 | |||
Collateralized Loan
Obligation |
— | — | 3,670,520 | 3,670,520 | |||
Total |
$ 10,024,327 | $ 33,594,700 | $ 449,581,409 | $ 493,200,436 |
Assets: | Level 1 | Level 2 | Level 3 | Total | |||
Other Financial
Instruments(2) |
$ 180,743 | $ — | $ — | $ 180,743 | |||
Total Assets - Other Financial
Instruments(2) |
$ 180,743 | $ — | $ — | $ 180,743 |
Quantitative Information about Level 3 Fair Value Measurements(1) | ||||
Value as of December 31, 2015 | Valuation Methodology | Significant Unobservable Input | Range (Weighted Average) | |
Commercial Mortgage Related Holdings: | ||||
Class B Notes | $6,799,873 | Discounted Cash Flow | Yield (Discount Rate of Cash Flows) | 9.5%-12.0% (10.4%) |
Investments in Securities | Residential Mortgage Related Holdings | Commercial Mortgage Related Holdings | Interest-Only Securities | Collateralized Loan Obligation | Total | ||||
Balance as of June 30,
2015 |
$373,105,646 | $107,786,402 | $3,150,630 | $3,955,200 | $487,997,878 | ||||
Accrued Discounts
(Premiums) |
6,025,967 | (57,429) | (5,904) | — | 5,962,634 | ||||
Realized Gain
(Loss) |
3,064,268 | 663,667 | — | — | 3,727,935 | ||||
Change in Unrealized Appreciation
(Depreciation) |
(11,464,919) | (1,606,616) | (383,556) | (284,680) | (13,739,771) | ||||
Purchases at
cost |
25,499,134 | 6,499,873 | 330,846 | — | 32,329,853 | ||||
Sales
proceeds |
(56,393,502) | (10,104,196) | (199,422) | — | (66,697,120) | ||||
Balance as of December 31, 2015 | $339,836,594 | $103,181,701 | $2,892,594 | $3,670,520 | $449,581,409 | ||||
Change in unrealized gains or losses relating to assets still held at the reporting date | $ (12,077,096) | $ (1,477,910) | $ (383,556) | $ (284,680) | $ (14,223,242) |
Derivatives | Statement of Assets and Liabilities | Fair Value as of December 31, 2015 |
Futures
contracts |
Receivable for variation margin (assets) | $ 228,058 |
Futures
contracts |
Payable for variation margin (liabilities) | (92,078) |
Total | $ 135,980 |
Derivatives | Location of Gains (Losses) on Derivatives Recognized in Income | Net Realized Loss on Futures Transactions | Net Change in Unrealized Appreciation on Futures |
Futures
contracts |
Futures transactions | $(499,177) | $236,440 |
Counterparty | Borrowing Rate | Borrowing Date | Maturity Date | Amount
Borrowed(1) |
Payable
for Reverse Repurchase Agreements | |
RBC Capital
Markets |
1.03% | 10/02/15 | 01/05/16 | $ 7,855,000 | $ 7,875,352 | |
RBC Capital
Markets |
1.09% | 11/25/15 | 02/25/16 | 6,655,000 | 6,662,477 | |
RBC Capital
Markets |
1.20% | 12/14/15 | 03/14/16 | 9,187,000 | 9,192,521 | |
RBC Capital
Markets |
1.55% | 10/02/15 | 01/06/16 | 12,122,000 | 12,169,495 | |
RBC Capital
Markets |
1.60% | 09/25/15 | 01/04/16 | 8,532,000 | 8,569,173 | |
RBC Capital
Markets |
1.61% | 11/12/15 | 02/12/16 | 9,221,000 | 9,241,569 | |
RBC Capital
Markets |
1.62% | 11/19/15 | 02/19/16 | 8,516,000 | 8,532,449 | |
RBC Capital
Markets |
1.64% | 10/20/15 | 01/20/16 | 16,371,000 | 16,425,514 | |
RBC Capital
Markets |
1.65% | 07/06/15 | 01/06/16 | 8,516,000 | 8,586,066 | |
RBC Capital
Markets |
1.67% | 10/20/15 | 01/20/16 | 3,282,000 | 3,293,095 | |
RBC Capital
Markets |
1.67% | 10/22/15 | 01/20/16 | 866,000 | 868,847 | |
RBC Capital
Markets |
1.75% | 07/06/15 | 01/06/16 | 8,924,000 | 9,001,860 | |
RBC Capital
Markets |
1.82% | 11/19/15 | 02/19/16 | 5,286,000 | 5,297,473 | |
RBC Capital
Markets |
1.82% | 12/03/15 | 03/03/16 | 2,776,000 | 2,780,075 | |
RBC Capital
Markets |
1.89% | 12/23/15 | 03/23/16 | 12,375,000 | 12,380,857 | |
RBC Capital
Markets |
1.97% | 08/26/15 | 02/26/16 | 16,632,000 | 16,748,767 | |
Total |
$137,116,000 | $137,625,590 |
Overnight and Continuous | Up to 30 Days | 30 to 90 Days | Greater Than 90 Days | Total | |||||
Residential Mortgage Related
Holdings |
$— | $20,519,000 | $31,783,000 | $— | $ 52,302,000 | ||||
Commercial Mortgage Related
Holdings |
— | 38,094,000 | 23,023,000 | — | 61,117,000 | ||||
Corporate
Bonds |
— | 7,855,000 | 15,842,000 | — | 23,697,000 | ||||
Total | $— | $66,468,000 | $70,648,000 | $— | $137,116,000 |
Gross Amounts not offset in the Statement of Assets and Liabilities | ||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged (Received)* | Net Amount | |
Description | ||||||
Reverse Repurchase
Agreements |
$137,116,000 | $— | $137,116,000 | $(137,116,000) | $— | $— |
Contracts | Type | Expiration Date | Value at December 31, 2015 | Unrealized Appreciation | |
320 |
2 Year U.S. Treasury
Note |
March 2016 | $ 69,515,000 | $ 98,682 | |
242 |
5 Year U.S. Treasury
Note |
March 2016 | 28,633,516 | 53,831 | |
145 |
10 Year U.S. Treasury
Note |
March 2016 | 18,256,406 | 28,230 | |
Total |
$116,404,922 | $180,743 |
Ordinary income (including short-term capital
gains) |
$32,705,299 |
Return of
capital |
1,937,989 |
Total |
$34,643,288 |
Other accumulated
losses |
$ (65,492) |
Capital loss
carryforward(1) |
(2,085,839) |
Post-October capital loss
deferral |
(2,828,407) |
Tax basis unrealized depreciation on
investments |
(7,361,892) |
Total tax basis net accumulated
losses |
$(12,341,630) |
Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation |
$517,889,574 | $5,968,333 | $(30,657,471) | $(24,689,138) |
Dividend Per Share | Record Date | Payable Date |
$0.1271 | January 21, 2015 | January 28, 2015 |
$0.1271 | February 18, 2015 | February 25, 2015 |
Shares Voted For | Shares Voted Against | Shares Voted Abstain | ||
1 | To elect to the Fund's Board of Directors Edward A. Kuczmarski | 19,240,085 | 252,457 | — |
2 | To elect to the Fund's Board of Directors Stuart A. McFarland | 18,783,825 | 708,717 | — |
• | Information we receive from you in applications or other forms, correspondence or conversations, including but not limited to name, address, phone number, social security number, assets, income and date of birth. |
• | Information about transactions with us, our affiliates, or others, including but not limited to account number, balance and payment history, parties to transactions, cost basis information, and other financial information. |
• | Information we may receive from our due diligence, such as your creditworthiness and your credit history. |
• | Unaffiliated service providers (e.g. transfer agents, securities broker-dealers, administrators, investment advisors or other firms that assist us in maintaining and supporting financial products and services provided to you); |
• | Government agencies, other regulatory bodies and law enforcement officials (e.g. for reporting suspicious transactions); |
• | Other organizations, with your consent or as directed by you; and |
• | Other organizations, as permitted or required by law (e.g. for fraud protection) |
Item 2. | Code of Ethics. |
Not applicable for semi-annual reports.
Item 3. | Audit Committee Financial Expert. |
Not applicable for semi-annual reports.
Item 4. | Principal Accountant Fees and Services. |
Not applicable for semi-annual reports.
Item 5. | Audit Committee of Listed Registrants. |
Not applicable for semi-annual reports.
Item 6. | Investments. |
Schedule of Investments is included as part of the report to stockholders filed under Item 1 of this Form.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable for semi-annual reports.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable for semi-annual reports.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
None.
Item 10. | Submission of Matters to a Vote of Security Holders. |
The registrants nominating committee charter does not contain any procedure by which shareholders may recommend nominees to the registrants board of directors.
Item 11. Controls and Procedures.
(a) The Registrants principal executive officer and principal financial officer have concluded that the Registrants Disclosure Controls and Procedures are effective, based on their evaluation of such Disclosure Controls and Procedures as of a date within 90 days of the filing of this report on Form N-CSR.
(b) As of the date of filing this Form N-CSR, the Registrants principal executive officer and principal financial officer are aware of no changes in the Registrants internal control over financial reporting that occurred during the Registrants second fiscal quarter of the period covered by this report that has materially affected or is reasonably likely to materially affect the Registrants internal control over financial reporting.
Item 12. Exhibits.
(a)(1) None.
(2) A separate certification for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(a) under the Investment Company Act of 1940 is attached as an exhibit to this Form N-CSR.
(3) None.
(b) A separate certification for each principal executive officer and principal financial officer of the Registrant as required by Rule 30a-2(b) under the Investment Company Act of 1940 is attached as an exhibit to this Form N-CSR.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.
By: | /s/ Brian F. Hurley | |
Brian F. Hurley | ||
President and Principal Executive Officer | ||
Date: February 29, 2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Brian F. Hurley | |
Brian F. Hurley | ||
President and Principal Executive Officer | ||
Date: February 29, 2016 | ||
By: | /s/ Angela W. Ghantous | |
Angela W. Ghantous | ||
Treasurer and Principal Financial Officer | ||
Date: February 29, 2016 |
CERT
CERTIFICATION
I, Brian F. Hurley, certify that:
1. I have reviewed this report on Form N-CSR of BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report;
4. The Registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the Registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
d) disclosed in this report any change in the Registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrants internal control over financial reporting; and
5. The Registrants other certifying officer(s) and I have disclosed to the Registrants auditors and the audit committee of the Registrants board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrants ability to record, process, summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrants internal control over financial reporting.
Dated: February 29, 2016 | /s/ Brian F. Hurley |
|||||
Brian F. Hurley | ||||||
President and Principal Executive Officer |
CERTIFICATION
I, Angela W. Ghantous, certify that:
1. I have reviewed this report on Form N-CSR of BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the Registrant as of, and for, the periods presented in this report;
4. The Registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:
a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b) designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c) evaluated the effectiveness of the Registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and
d) disclosed in this report any change in the Registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrants internal control over financial reporting; and
5. The Registrants other certifying officer(s) and I have disclosed to the Registrants auditors and the audit committee of the Registrants board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrants ability to record, process, summarize, and report financial information; and
b) any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrants internal control over financial reporting.
Dated: February 29, 2016 | /s/ Angela W. Ghantous |
|||||
Angela W. Ghantous |
||||||
Treasurer and Principal Financial Officer |
EX-99.906CERT
CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES OXLEY ACT
Brian F. Hurley, Principal Executive Officer, and Angela W. Ghantous, Principal Financial Officer, of BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC. (the Registrant), each certify as evidenced below that:
1. | The N-CSR of the Registrant (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Dated: February 29, 2016 | /s/ Brian F. Hurley | |||
Brian F. Hurley | ||||
President and Principal Executive Officer | ||||
BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC. | ||||
Dated: February 29, 2016 | /s/ Angela W. Ghantous | |||
Angela W. Ghantous | ||||
Treasurer and Principal Financial Officer | ||||
BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC. |
A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signatures that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC. and will be retained by BROOKFIELD MORTGAGE OPPORTUNITY INCOME FUND INC. and furnished to the Securities and Exchange Commission or its staff upon request.
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