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 811-05820
BROOKFIELD TOTAL RETURN 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 TOTAL RETURN 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: November 30, 2014
Date of reporting period: May 31, 2014
Item 1. Reports to Shareholders.
1 | As of April 30, 2014. |
2 | From May 2013 through May 2014. |
PORTFOLIO STATISTICS | |
Annualized distribution yield1 | 9.19% |
Weighted average coupon | 3.29% |
Weighted average life | 7.80 years |
Average portfolio dollar price (Excluding interest-only securities) | $84.50 |
Percentage of fixed rate securities | 58.10% |
Percentage of floating rate securities | 41.90% |
Percentage of leveraged assets | 28.96% |
Total number of holdings | 299 |
CREDIT QUALITY | |
AAA | 15.3% |
AA | 1.7% |
A | 7.8% |
BBB | 7.3% |
BB | 8.9% |
B | 22.7% |
Below B | 36.3% |
Total | 100.0% |
ASSET ALLOCATION | |
U.S. Government & Agency Obligations | 5.5% |
Asset-Backed Securities | 4.9% |
Residential Mortgage Related Holdings | 41.7% |
Commercial Mortgage Related Holdings | 66.3% |
Interest-Only Securities | 5.3% |
Corporate Bonds | 14.5% |
Preferred Stock | 1.1% |
Liabilities in Excess of Other Assets | (39.3)% |
Total | 100.0% |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |
U.S. GOVERNMENT & AGENCY OBLIGATIONS – 5.5% | ||||
U.S. Government Agency Collateralized Mortgage Obligations – 0.1% | ||||
Federal National Mortgage Association | ||||
Series 1997-79, Class PL
1 |
6.85% | 12/18/27 | $ 251 | $ 285,404 |
Total U.S. Government Agency Collateralized Mortgage Obligations | 285,404 | |||
U.S. Government Agency Pass-Through Certificates – 5.4% | ||||
Federal Home Loan Mortgage Corporation | ||||
Federal Home Loan Mortgage Corporation TBA
|
4.00 | TBA | 4,000 | 4,233,752 |
Pool Q03049
1 |
4.50 | 08/01/41 | 2,741 | 2,987,483 |
Pool C69047
1 |
7.00 | 06/01/32 | 386 | 435,870 |
Pool H01847
1 |
7.00 | 09/01/37 | 164 | 178,974 |
Pool C53494
1 |
7.50 | 06/01/31 | 44 | 45,668 |
Pool C56878
1 |
8.00 | 08/01/31 | 101 | 110,550 |
Pool C58516
1 |
8.00 | 09/01/31 | 40 | 41,198 |
Pool C59641
1 |
8.00 | 10/01/31 | 215 | 248,691 |
Pool C55166
1 |
8.50 | 07/01/31 | 104 | 113,019 |
Pool C55167
1 |
8.50 | 07/01/31 | 66 | 69,004 |
Pool C55169
1 |
8.50 | 07/01/31 | 62 | 65,026 |
Pool G01466
1 |
9.50 | 12/01/22 | 421 | 464,732 |
Pool 555559
1 |
10.00 | 03/01/21 | 92 | 100,465 |
Pool 555538
1 |
10.00 | 03/01/21 | 138 | 149,051 |
Federal National Mortgage Association | ||||
Pool 753914
1 |
5.50 | 12/01/33 | 1,138 | 1,273,100 |
Pool 761836
1 |
6.00 | 06/01/33 | 574 | 644,020 |
Pool 948362
1 |
6.50 | 08/01/37 | 262 | 285,555 |
Pool 555933
1 |
7.00 | 06/01/32 | 1,820 | 2,122,574 |
Pool 645912
1 |
7.00 | 06/01/32 | 377 | 424,455 |
Pool 645913
1 |
7.00 | 06/01/32 | 620 | 702,316 |
Pool 650131
1 |
7.00 | 07/01/32 | 512 | 579,684 |
Pool 789284
1 |
7.50 | 05/01/17 | 23 | 23,787 |
Pool 827853
1 |
7.50 | 10/01/29 | 34 | 34,717 |
Pool 545990
1 |
7.50 | 04/01/31 | 664 | 755,609 |
Pool 255053
1 |
7.50 | 12/01/33 | 156 | 178,964 |
Pool 735576
1 |
7.50 | 11/01/34 | 820 | 983,731 |
Pool 896391
1 |
7.50 | 06/01/36 | 372 | 427,848 |
Pool 735800
1 |
8.00 | 01/01/35 | 507 | 613,445 |
Pool 636449
1 |
8.50 | 04/01/32 | 407 | 478,592 |
Pool 458132
1 |
8.99 | 03/15/31 | 818 | 938,793 |
Pool 852865
1 |
9.00 | 07/01/20 | 526 | 586,854 |
Pool 545436
1 |
9.00 | 10/01/31 | 313 | 375,049 |
Total U.S. Government Agency Pass-Through Certificates | 20,672,576 | |||
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS (Cost $19,617,277)
|
20,957,980 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |
ASSET-BACKED SECURITIES – 4.9% | ||||
Housing Related Asset-Backed Securities – 4.9% | ||||
ACE Securities Corporation Manufactured Housing Trust | ||||
Series 2003-MH1, Class A4
2,3 |
6.50% | 08/15/30 | $ 1,705 | $ 1,806,959 |
Bayview Opportunity Master Fund IIa Trust | ||||
Series 2012-4NR2, Class A
1,2,3,4,5 |
3.95 | 01/28/34 | 2,496 | 2,509,256 |
Conseco Finance Securitizations Corp. | ||||
Series 2001-4, Class A4
|
7.36 | 08/01/32 | 297 | 330,157 |
Conseco Financial Corp. | ||||
Series 1998-3, Class A6
|
6.76 | 03/01/30 | 1,163 | 1,253,123 |
Series 1997-7, Class A7
|
6.96 | 07/15/28 | 1,076 | 1,128,871 |
Series 1997-2, Class A6
|
7.24 | 06/15/28 | 125 | 130,394 |
Series 1997-6, Class A9
|
7.55 | 01/15/29 | 1,022 | 1,091,246 |
Lehman ABS Manufactured Housing Contract Trust | ||||
Series 2001-B, Class A5
|
5.87 | 04/15/40 | 227 | 245,457 |
Series 2001-B, Class A6
|
6.47 | 04/15/40 | 197 | 210,761 |
Mid-State Capital Corp. | ||||
Series 2004-1, Class M1
|
6.50 | 08/15/37 | 4,576 | 4,923,811 |
Series 2004-1, Class M2 6 (Acquired 07/01/04, Cost $2,260,161,
0.7%) |
8.11 | 08/15/37 | 2,263 | 2,625,546 |
Newcastle CDO IX Ltd | ||||
Series 2007-10-1, Class A
2,3,7,8 |
0.41 | 05/25/52 | 553 | 551,711 |
Origen Manufactured Housing Contract Trust | ||||
Series 2005-B, Class A4
|
5.91 | 01/15/37 | 1,668 | 1,737,511 |
Total Housing Related Asset-Backed Securities | 18,544,803 | |||
TOTAL ASSET-BACKED SECURITIES (Cost $18,096,822)
|
18,544,803 | |||
RESIDENTIAL MORTGAGE RELATED HOLDINGS – 41.7% | ||||
Non-Agency Mortgage-Backed Securities – 41.7% | ||||
Alternative Loan Trust | ||||
Series 2007-OA3, Class 1A1
7,9 |
0.29 | 04/25/47 | 7,859 | 6,650,171 |
Series 2006-OA10, Class 3A1
7,9 |
0.34 | 08/25/46 | 7,800 | 5,986,477 |
Series 2005-51, Class 4A1
7,9 |
0.47 | 11/20/35 | 5,758 | 4,842,973 |
Series 2007-2CB, Class 1A15
|
5.75 | 03/25/37 | 1,063 | 899,755 |
Series 2006-29T1, Class 2A5
|
6.00 | 10/25/36 | 3,944 | 3,455,386 |
Series 2006-41CB, Class 2A17
|
6.00 | 01/25/37 | 1,739 | 1,498,872 |
Series 2006-29T1, Class 3A3
7,10 |
76.88 | 10/25/36 | 1,101 | 3,547,990 |
Asset-Backed Securities Corporation Home Equity Loan Trust | ||||
Series 2007-HE1, Class A4
5,7,9 |
0.29 | 12/25/36 | 2,350 | 1,819,325 |
Banc of America Funding Corp. | ||||
Series 2003-3, Class B4 6 (Acquired 01/28/04, Cost $201,374,
0.0%) |
5.48 | 10/25/33 | 223 | 73,806 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |
RESIDENTIAL MORTGAGE RELATED HOLDINGS (continued) | ||||
Series 2003-3, Class B5 6 (Acquired 01/28/04, Cost $128,897,
0.0%) |
5.48% | 10/25/33 | $ 171 | $ 35,876 |
BCAP LLC Trust | ||||
Series 2009-RR13, Class 18A2
2,3 |
5.80 | 07/26/37 | 2,054 | 1,698,796 |
Citicorp Mortgage Securities Trust | ||||
Series 2006-3, Class 1A4
|
6.00 | 06/25/36 | 2,232 | 2,318,590 |
Citigroup Mortgage Loan Trust | ||||
Series 2009-11, Class 8A2
2,3,7 |
2.17 | 04/25/45 | 3,244 | 2,716,728 |
Countrywide Home Loan Mortgage Pass-Through Trust | ||||
Series 2003-J13, Class B3 6 (Acquired 09/13/07, Cost $83,354,
0.0%) |
5.25 | 01/25/34 | 308 | 49,234 |
Series 2007-5, Class A29
|
5.50 | 05/25/37 | 899 | 860,842 |
Series 2006-21, Class A11
|
5.75 | 02/25/37 | 2,889 | 2,661,396 |
Series 2004-21, Class A10
|
6.00 | 11/25/34 | 414 | 434,916 |
Series 2007-18, Class 1A1
|
6.00 | 11/25/37 | 665 | 599,975 |
Series 2006-14, Class A4
|
6.25 | 09/25/36 | 5,617 | 5,181,209 |
DSLA Mortgage Loan Trust | ||||
Series 2007-AR1, Class 2A1A
7,9 |
0.29 | 04/19/47 | 5,074 | 4,214,710 |
First Republic Mortgage Bank Mortgage Pass-Through Certificates | ||||
Series 2000-FRB1, Class B3 6,7 (Acquired 08/30/01, Cost $84,833,
0.0%) |
0.65 | 06/25/30 | 88 | 56,022 |
GMAC Mortgage Corporation Loan Trust | ||||
Series 2004-J5, Class M1
|
5.41 | 01/25/35 | 1,517 | 1,226,099 |
GSAMP Trust | ||||
Series 2006-HE5, Class A2C
5,7,9 |
0.30 | 08/25/36 | 5,136 | 4,247,121 |
Series 2006-HE8, Class A2C
7,9 |
0.32 | 01/25/37 | 6,277 | 4,958,843 |
GSR Mortgage Loan Trust | ||||
Series 2005-6F, Class 1A6
|
5.25 | 07/25/35 | 1,092 | 1,128,248 |
Indymac Index Mortgage Loan Trust | ||||
Series 2006-FLX1, Class A1
7,9 |
0.36 | 11/25/36 | 6,407 | 5,609,183 |
IXIS Real Estate Capital Trust | ||||
Series 2006-HE3, Class A2
5,7,9 |
0.25 | 01/25/37 | 1,045 | 543,688 |
Series 2006-HE2, Class A3
5,7,9 |
0.31 | 08/25/36 | 10,182 | 5,244,280 |
Series 2006-HE3, Class A4
5,7,9 |
0.38 | 01/25/37 | 807 | 437,359 |
JP Morgan Mortgage Acquisition Corp. | ||||
Series 2006-WMC1, Class A4
5,7,9 |
0.33 | 03/25/36 | 2,710 | 2,313,798 |
JP Morgan Mortgage Trust | ||||
Series 2003-A1, Class B4 6,7 (Acquired 10/29/04, Cost $218,606,
0.0%) |
2.10 | 10/25/33 | 254 | 55,762 |
Series 2003-A2, Class B4 6,7 (Acquired 10/29/04, Cost $157,200,
0.0%) |
2.38 | 11/25/33 | 184 | 70,388 |
Master Asset Backed Securities Trust | ||||
Series 2006-NC2, Class A4
5,7,9 |
0.30 | 08/25/36 | 1,819 | 1,000,453 |
Series 2006-NC3, Class A4
5,7,9 |
0.31 | 10/25/36 | 3,019 | 1,846,314 |
Series 2006-HE5, Class A3
5,7,9 |
0.31 | 11/25/36 | 5,822 | 3,802,361 |
Series 2006-NC3, Class A5
5,7,9 |
0.36 | 10/25/36 | 4,654 | 2,867,847 |
Series 2006-HE5, Class A4
5,7,9 |
0.37 | 11/25/36 | 1,965 | 1,293,683 |
Series 2006-NC2, Class A5
5,7,9 |
0.39 | 08/25/36 | 676 | 372,550 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |
RESIDENTIAL MORTGAGE RELATED HOLDINGS (continued) | ||||
Series 2005-NC2, Class A4
5,7,9 |
0.50% | 11/25/35 | $ 7,585 | $4,826,095 |
Mid-State Capital Corp. | ||||
Series 2004-1, Class B
|
8.90 | 08/15/37 | 381 | 425,948 |
Mid-State Trust X | ||||
Series 10, Class B 6 (Acquired 01/05/04, Cost $1,705,458,
0.5%) |
7.54 | 02/15/36 | 1,793 | 1,927,748 |
Nationstar Home Equity Loan Trust | ||||
Series 2006-B, Class AV4
5,7,9 |
0.43 | 09/25/36 | 6,395 | 5,601,540 |
Nomura Resecuritization Trust | ||||
Series 2014-1R, Class 2A6
2,3 |
0.00 | 02/26/37 | 70 | 7 |
Series 2014-1R, Class 2A11
2,3,7 |
0.28 | 02/26/37 | 15,156 | 6,820,200 |
Series 2013-1R, Class 3A12
2,3,5,7,9 |
0.31 | 10/26/36 | 10,226 | 6,979,245 |
Oakwood Mortgage Investors, Inc. | ||||
Series 2001-D, Class A4
|
6.93 | 09/15/31 | 1,227 | 1,145,700 |
RAAC Series | ||||
Series 2005-SP1, Class M3 6 (Acquired 08/02/07, Cost $161,717,
0.0%) |
5.52 | 09/25/34 | 191 | 1,781 |
RALI Trust | ||||
Series 2006-QO7, Class 2A1
7 |
0.97 | 09/25/46 | 13,392 | 9,593,317 |
RESI Finance LP | ||||
Series 2006-QO1, Class 2A1
7,9 |
0.42 | 02/25/46 | 1,295 | 851,479 |
Series 2006-QS14, Class A30
7,10 |
79.30 | 11/25/36 | 219 | 626,150 |
Residential Accredit Loans Trust | ||||
Series 2004-B, Class B5
2,3,7 |
1.70 | 02/10/36 | 989 | 652,703 |
Residential Asset Securitization Trust | ||||
Series 2007-QS6, Class A2
7,10 |
54.33 | 04/25/37 | 346 | 792,681 |
Resix Finance Limited Credit-Linked Notes | ||||
Series 2004-C, Class B7 2,3,6,7 (Acquired 09/23/04, Cost $849,537,
0.1%) |
3.65 | 09/10/36 | 850 | 376,515 |
Series 2004-B, Class B8 2,3,6,7 (Acquired 05/21/04, Cost $226,383,
0.0%) |
4.90 | 02/10/36 | 226 | 89,829 |
Series 2004-S1, Class B1 6 (Acquired 02/26/04, Cost $167,217,
0.0%) |
5.25 | 02/25/34 | 185 | 102,630 |
Series 2004-S1, Class B2 6 (Acquired 02/26/04, Cost $22,600,
0.0%) |
5.25 | 02/25/34 | 99 | 16,700 |
Series 2003-S7, Class B2 6 (Acquired 05/19/03, Cost $0,
0.0%) |
5.50 | 05/25/33 | 160 | 13,615 |
Series 2003-D, Class B7 2,3,6,7 (Acquired 11/19/03, Cost $468,199,
0.1%) |
5.90 | 12/10/35 | 468 | 234,288 |
Series 2003-CB1, Class B8 2,3,6,7 (Acquired 12/22/04, Cost $1,089,995,
0.1%) |
6.90 | 06/10/35 | 1,224 | 515,958 |
Series 2004-B, Class B9 2,3,6,7 (Acquired 05/21/04, Cost $346,785,
0.0%) |
8.40 | 02/10/36 | 347 | 135,629 |
Series 2004-A, Class B10 2,3,6,7 (Acquired 03/09/04, Cost $365,769,
0.0%) |
11.65 | 02/10/36 | 366 | 113,976 |
Saxon Asset Securities Trust | ||||
Series 2006-2, Class A3C
5,7,9 |
0.30 | 09/25/36 | 2,644 | 2,502,466 |
Securitized Asset Backed Receivables LLC | ||||
Series 2007-BR3, Class A2A
5,7,9 |
0.22 | 04/25/37 | 6,010 | 3,966,823 |
Series 2007-NC1, Class A2B
5,7,9 |
0.30 | 12/25/36 | 6,584 | 3,688,872 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |
RESIDENTIAL MORTGAGE RELATED HOLDINGS (continued) | ||||
Series 2007-BR2, Class A2
5,7,9 |
0.38% | 02/25/37 | $ 4,188 | $ 2,468,450 |
Thornburg Mortgage Securities Trust | ||||
Series 2007-1, Class A2B
7 |
1.45 | 03/25/37 | 5,456 | 5,058,849 |
Washington Mutual Mortgage Pass-Through Certificates | ||||
Series 2007-OA3, Class 2A
1,7 |
0.89 | 04/25/47 | 5,382 | 4,495,107 |
Series 2006-AR12, Class 1A2
7 |
2.41 | 10/25/36 | 2,498 | 2,184,089 |
Series 2007-HY5, Class 3A1
7 |
4.69 | 05/25/37 | 1,740 | 1,667,741 |
Series 2003-S1, Class B4 2,3,6,11 (Acquired 10/25/07, Cost $0,
0.0%) |
5.50 | 04/25/33 | 112 | 11,887 |
Series 2007-5, Class A11
7,10 |
38.58 | 06/25/37 | 121 | 210,932 |
Series 2005-6, Class 2A3
7,10 |
49.50 | 08/25/35 | 172 | 306,318 |
Wells Fargo Mortgage Backed Securities Trust | ||||
Series 2004-6, Class B4 6 (Acquired 04/13/05, Cost $574,955,
0.0%) |
5.50 | 06/25/34 | 698 | 59,316 |
Series 2007-8, Class 1A22
|
6.00 | 07/25/37 | 578 | 576,283 |
Series 2007-8, Class 2A2
|
6.00 | 07/25/37 | 1,216 | 1,178,523 |
Series 2007-13, Class A7
|
6.00 | 09/25/37 | 459 | 454,310 |
Series 2005-18, Class 2A10
7,10 |
22.18 | 01/25/36 | 261 | 327,605 |
Total Non-Agency Mortgage-Backed Securities | 157,622,331 | |||
RESIDENTIAL MORTGAGE RELATED HOLDINGS (Cost $148,038,133)
|
157,622,331 | |||
COMMERCIAL MORTGAGE RELATED HOLDINGS – 66.3% | ||||
Commercial Mortgage-Backed Securities – 63.0% | ||||
A10 Securitization LLC | ||||
Series 2013-2, Class B
2,3 |
4.38 | 11/15/27 | 2,927 | 2,943,069 |
Series 2013-2, Class C
2,3 |
5.12 | 11/15/27 | 2,000 | 2,061,226 |
Series 2013-2, Class D
2,3 |
6.23 | 11/15/27 | 501 | 523,699 |
Banc of America Commercial Mortgage Trust | ||||
Series 2006-6, Class AJ
|
5.42 | 10/10/45 | 11,000 | 11,339,669 |
Series 2006-2, Class J 2,3,6 (Acquired 06/12/06, Cost $289,623,
0.0%) |
5.48 | 05/10/45 | 332 | 2,580 |
Series 2007-3, Class AJ
1 |
5.77 | 06/10/49 | 14,670 | 15,237,494 |
Series 2007-2, Class A4
1 |
5.78 | 04/10/49 | 4,850 | 5,361,777 |
Bear Stearns Commercial Mortgage Securities Trust | ||||
Series 2006-PW11, Class H 2,3,6 (Acquired 03/08/06, Cost $1,693,877,
0.1%) |
5.60 | 03/11/39 | 1,729 | 286,144 |
Series 2007-PW16, Class B 2,3,6 (Acquired 09/22/10-03/03/11, Cost $4,112,390,
1.5%) |
5.71 | 06/11/40 | 6,000 | 5,700,000 |
Series 2007-PW16, Class C 2,3,6 (Acquired 09/22/10, Cost $2,780,587,
1.2%) |
5.71 | 06/11/40 | 5,000 | 4,478,530 |
Series 2007-T28, Class F 2,3,6 (Acquired 10/11/07, Cost $236,018,
0.0%) |
5.96 | 09/11/42 | 250 | 170,470 |
Citigroup Commercial Mortgage Trust | ||||
Series 2008-C7, Class AJ
|
6.14 | 12/10/49 | 6,354 | 6,454,711 |
Commercial Mortgage Lease-Backed Certificate | ||||
Series 2001-CMLB, Class A1
2,3,11 |
6.75 | 06/20/31 | 408 | 423,802 |
Commercial Mortgage Trust | ||||
Series 2007-C9, Class AJFL
1,2,3,7 |
0.84 | 12/10/49 | 9,277 | 8,813,150 |
Series 2007-GG7, Class AJ
1 |
5.82 | 07/10/38 | 3,830 | 4,003,507 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |
COMMERCIAL MORTGAGE RELATED HOLDINGS (continued) | ||||
Series 2007-GG11, Class AJ
1 |
6.06% | 12/10/49 | $ 10,330 | $10,765,255 |
Series 2007-GG11, Class B
|
6.15 | 12/10/49 | 3,568 | 3,275,664 |
Series 2007-GG11, Class C
|
6.15 | 12/10/49 | 8,400 | 6,788,090 |
Credit Suisse Commercial Mortgage Trust | ||||
Series 2007-C2, Class AMFL
1,7 |
0.38 | 01/15/49 | 7,000 | 6,518,393 |
Series 2006-C1, Class K 2,3,6 (Acquired 03/07/06, Cost $6,927,700,
0.2%) |
5.46 | 02/15/39 | 7,073 | 791,122 |
Series 2007-C2, Class A3
1 |
5.54 | 01/15/49 | 6,024 | 6,620,774 |
Credit Suisse First Boston Mortgage Securities Corp. | ||||
Series 2004-C5, Class J 2,3,6 (Acquired 12/16/04, Cost $984,951,
0.2%) |
4.65 | 11/15/37 | 1,000 | 687,800 |
Series 2005-C2, Class AMFX
1 |
4.88 | 04/15/37 | 10,800 | 10,965,035 |
Credit Suisse Mortgage Capital Certificates | ||||
Series 2006-TF2A, Class SVJ
2,3,7 |
1.37 | 10/15/21 | 7,000 | 6,986,707 |
GMAC Commercial Mortgage Securities, Inc. | ||||
Series 2004-C3, Class B 6 (Acquired 12/07/10, Cost $1,636,215,
0.5%) |
4.97 | 12/10/41 | 1,750 | 1,779,990 |
JP Morgan Chase Commercial Mortgage Securities Corp. | ||||
Series 2003-LN1, Class G 2,3,6 (Acquired 09/24/03, Cost $899,027,
0.2%) |
5.35 | 10/15/37 | 901 | 899,270 |
Series 2007-CB20, Class AM
|
5.88 | 02/12/51 | 1,180 | 1,333,284 |
Series 2009-IWST, Class D 1,2,3,6 (Acquired 06/28/07, Cost $7,767,307,
2.2%) |
7.69 | 12/05/27 | 7,000 | 8,350,797 |
LB-UBS Commercial Mortgage Trust | ||||
Series 2007-C1, Class AJ
1 |
5.48 | 02/15/40 | 7,460 | 7,791,992 |
Series 2007-C1, Class C 6 (Acquired 02/10/11, Cost $2,923,847,
0.9%) |
5.53 | 02/15/40 | 3,260 | 3,237,581 |
Series 2007-C1, Class D
|
5.56 | 02/15/40 | 3,600 | 3,330,436 |
Series 2007-C7, Class AJ
|
6.25 | 09/15/45 | 10,000 | 10,672,150 |
LNR CDO V Ltd. | ||||
Series 2007-1A, Class F 2,3,6,7 (Acquired 02/27/07, Cost $0,
0.0%) |
1.60 | 12/26/49 | 3,750 | — |
Morgan Stanley Capital I Trust | ||||
Series 2004-HQ4, Class G 2,3,6 (Acquired 03/01/06, Cost $996,308,
0.3%) |
5.37 | 04/14/40 | 1,000 | 1,000,887 |
Series 2006-T21, Class H 2,3,6 (Acquired 04/04/06, Cost $1,430,648,
0.2%) |
5.40 | 10/12/52 | 1,500 | 624,375 |
Series 2006-IQ11, Class J 2,3,6 (Acquired 05/24/06, Cost $64,022,
0.0%) |
5.53 | 10/15/42 | 188 | 3,708 |
Series 2007-HQ13, Class A3
1 |
5.57 | 12/15/44 | 6,108 | 6,615,349 |
Series 2007-T25, Class AJ
1 |
5.57 | 11/12/49 | 12,500 | 12,884,213 |
Series 2007-T27, Class AJ
1 |
5.65 | 06/11/42 | 3,757 | 4,139,635 |
Series 2007-IQ14, Class A4
1 |
5.69 | 04/15/49 | 6,690 | 7,386,569 |
Series 2007-IQ16, Class AJ
|
6.13 | 12/12/49 | 5,008 | 5,076,109 |
Morgan Stanley Dean Witter Capital I Trust | ||||
Series 2003-TOP9, Class F 2,3,6 (Acquired 07/08/10, Cost $2,801,787,
0.8%) |
5.65 | 11/13/36 | 2,877 | 2,914,289 |
Series 2003-TOP9, Class G 2,3,6 (Acquired 07/08/10, Cost $4,425,876,
1.2%) |
5.92 | 11/13/36 | 4,577 | 4,630,203 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |
COMMERCIAL MORTGAGE RELATED HOLDINGS (continued) | ||||
Vornado DP LLC Trust | ||||
Series 2010-VNO, Class D 2,3,6 (Acquired 08/08/10, Cost $919,681,
0.3%) |
6.36% | 09/13/28 | $ 920 | $ 1,066,742 |
Wachovia Bank Commercial Mortgage Trust | ||||
Series 2007-WHL8, Class C
2,3,7 |
0.40 | 06/15/20 | 7,341 | 7,160,712 |
Series 2007-C31, Class L 2,3,6 (Acquired 05/11/07, Cost $0,
0.0%) |
5.13 | 04/15/47 | 1,788 | 358 |
Series 2005-C20, Class F 2,3,6 (Acquired 10/15/10, Cost $2,560,401,
0.7%) |
5.26 | 07/15/42 | 4,000 | 2,720,508 |
Series 2007-C30, Class AJ
|
5.41 | 12/15/43 | 6,500 | 6,700,960 |
Series 2005-C16, Class H 2,3,6 (Acquired 01/19/05, Cost $5,981,523,
1.6%) |
5.56 | 10/15/41 | 6,000 | 6,000,102 |
Series 2007-C33, Class AJ
|
5.94 | 02/15/51 | 10,000 | 10,481,370 |
Total Commercial Mortgage-Backed Securities | 238,000,257 | |||
Mezzanine Loan – 3.3% | ||||
BOCA Mezzanine
|
8.17 | 08/15/15 | 9,074 | 9,073,867 |
Extended Stay America 2013 Mezzanine B
|
9.63 | 12/01/19 | 3,380 | 3,481,018 |
Total Mezzanine Loan | 12,554,885 | |||
COMMERCIAL MORTGAGE RELATED HOLDINGS (Cost $240,083,505)
|
250,555,142 | |||
INTEREST-ONLY SECURITIES – 5.3% | ||||
Commercial Mortgage Trust | ||||
Series 2001-J2A, Class EIO
2,3,7,12 |
3.85 | 07/16/34 | 10,000 | 851,800 |
Federal National Mortgage Association | ||||
Series 2012-125, Class MI
12 |
3.50 | 11/25/42 | 4,634 | 1,091,985 |
Series 2013-32, Class IG
12 |
3.50 | 04/25/33 | 7,861 | 1,453,525 |
Series 2011-46, Class BI
12 |
4.50 | 04/25/37 | 5,497 | 690,492 |
GMAC Commercial Mortgage Securities, Inc. | ||||
Series 2003-C1, Class X1
2,3,7,12 |
0.93 | 05/10/36 | 2,219 | 45,225 |
Government National Mortgage Association | ||||
Series 2005-76, Class IO
1,7,12 |
0.53 | 09/16/45 | 25,400 | 747,306 |
Series 2012-100, Class IO
1,7,12 |
0.83 | 08/16/52 | 33,360 | 2,206,067 |
Series 2012-70, Class IO
1,7,12 |
0.96 | 08/16/52 | 46,580 | 2,979,474 |
Series 2012-95, Class IO
1,7,12 |
1.02 | 02/16/53 | 11,180 | 904,081 |
Series 2012-78, Class IO
1,7,12 |
1.06 | 06/16/52 | 35,761 | 2,615,276 |
Series 2013-40, Class IO
1,7,12 |
1.08 | 06/16/54 | 19,633 | 1,376,749 |
Series 2012-132, Class IO
1,7,12 |
1.14 | 06/16/54 | 23,879 | 1,751,893 |
Series 2012-89, Class IO
1,7,12 |
1.29 | 12/16/53 | 36,197 | 2,347,196 |
Series 2010-132, Class IO
1,7,12 |
1.29 | 11/16/52 | 16,104 | 1,030,885 |
Vendee Mortgage Trust | ||||
Series 1997-2, Class IO
7,12 |
0.02 | 06/15/27 | 13,062 | 3,919 |
Wachovia Commercial Mortgage Pass-Through Certificates | ||||
Series 2002-C2, Class IO1
2,3,7,12 |
1.56 | 11/15/34 | 2,264 | 3,047 |
INTEREST-ONLY SECURITIES (Cost $20,006,373)
|
20,098,920 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |
CORPORATE BONDS – 14.5% | ||||
Automotive – 0.5% | ||||
American Axle & Manufacturing, Inc.
1 |
6.63% | 10/15/22 | $ 300 | $ 326,250 |
American Axle & Manufacturing, Inc.
1 |
7.75 | 11/15/19 | 350 | 402,938 |
Chrysler Group LLC
1 |
8.25 | 06/15/21 | 750 | 855,000 |
Jaguar Land Rover Automotive PLC
1,2,3,8 |
8.13 | 05/15/21 | 400 | 451,500 |
Total Automotive | 2,035,688 | |||
Basic Industry – 1.8% | ||||
Alpha Natural Resources, Inc.
1 |
6.25 | 06/01/21 | 775 | 530,875 |
Arch Coal, Inc.
1 |
7.25 | 06/15/21 | 925 | 659,062 |
Associated Materials LLC
1 |
9.13 | 11/01/17 | 500 | 520,000 |
Cascades, Inc.
1,8 |
7.88 | 01/15/20 | 500 | 533,125 |
FMG Resources August 2006 Property Ltd.
1,2,3,8 |
6.88 | 04/01/22 | 525 | 553,875 |
Hexion US Finance Corp.
1 |
9.00 | 11/15/20 | 600 | 600,000 |
Ineos Finance PLC
1,2,3,8 |
7.50 | 05/01/20 | 425 | 464,312 |
Masonite International Corp.
1,2,3,8 |
8.25 | 04/15/21 | 600 | 654,000 |
Steel Dynamics, Inc.
1 |
7.63 | 03/15/20 | 300 | 322,125 |
Tembec Industries, Inc.
1,8 |
11.25 | 12/15/18 | 500 | 543,750 |
Trinseo Materials Operating SCA
1,8 |
8.75 | 02/01/19 | 575 | 613,094 |
United States Steel Corp.
1 |
7.00 | 02/01/18 | 325 | 359,125 |
Xerium Technologies, Inc.
1 |
8.88 | 06/15/18 | 525 | 557,813 |
Total Basic Industry | 6,911,156 | |||
Capital Goods – 0.7% | ||||
AAR Corp.
1 |
7.25 | 01/15/22 | 500 | 545,000 |
Crown Cork & Seal Company, Inc.
1 |
7.38 | 12/15/26 | 350 | 391,562 |
Mueller Water Products, Inc.
1 |
8.75 | 09/01/20 | 281 | 311,910 |
Reynolds Group Issuer, Inc.
1 |
7.88 | 08/15/19 | 750 | 819,375 |
Terex Corp.
1 |
6.50 | 04/01/20 | 600 | 650,250 |
Total Capital Goods | 2,718,097 | |||
Consumer Cyclical – 0.6% | ||||
ACCO Brands Corp.
1 |
6.75 | 04/30/20 | 600 | 627,750 |
Levi Strauss & Co.
1 |
7.63 | 05/15/20 | 600 | 648,000 |
Limited Brands, Inc.
1 |
7.60 | 07/15/37 | 500 | 545,000 |
Roundy's Supermarkets, Inc.
1,2,3 |
10.25 | 12/15/20 | 500 | 527,500 |
Total Consumer Cyclical | 2,348,250 | |||
Consumer Non-Cyclical – 0.7% | ||||
Bumble Bee Holdings, Inc.
1,2,3 |
9.00 | 12/15/17 | 558 | 599,152 |
C&S Group Enterprises LLC
1,2,3 |
8.38 | 05/01/17 | 600 | 626,250 |
Cott Beverages, Inc.
1 |
8.13 | 09/01/18 | 350 | 369,688 |
Jarden Corp.
1 |
7.50 | 05/01/17 | 300 | 341,250 |
Post Holdings, Inc.
1 |
7.38 | 02/15/22 | 500 | 542,500 |
Total Consumer Non-Cyclical | 2,478,840 | |||
Energy – 2.4% | ||||
Atlas Pipeline Partners LP
1 |
5.88 | 08/01/23 | 600 | 606,000 |
Basic Energy Services, Inc.
1 |
7.75 | 02/15/19 | 550 | 587,125 |
BreitBurn Energy Partners LP
1 |
7.88 | 04/15/22 | 675 | 725,625 |
Calfrac Holdings LP
1,2,3 |
7.50 | 12/01/20 | 600 | 640,500 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |
CORPORATE BONDS (continued) | ||||
CGG SA
1,8 |
6.50% | 06/01/21 | $ 550 | $ 528,000 |
Crestwood Midstream Partners LP
1 |
6.00 | 12/15/20 | 600 | 625,500 |
EV Energy Partners LP
1 |
8.00 | 04/15/19 | 800 | 836,000 |
Ferrellgas Partners LP
1 |
8.63 | 06/15/20 | 500 | 532,500 |
Hilcorp Energy I LP
1,2,3 |
8.00 | 02/15/20 | 600 | 643,500 |
Key Energy Services, Inc.
1 |
6.75 | 03/01/21 | 600 | 627,000 |
Linn Energy LLC
1 |
7.75 | 02/01/21 | 300 | 323,625 |
Linn Energy LLC
1 |
8.63 | 04/15/20 | 300 | 325,125 |
Precision Drilling Corp.
1,8 |
6.63 | 11/15/20 | 300 | 321,000 |
RKI Exploration & Production LLC
1,2,3 |
8.50 | 08/01/21 | 350 | 379,750 |
Trinidad Drilling Ltd.
1,2,3,8 |
7.88 | 01/15/19 | 600 | 639,000 |
W&T Offshore, Inc.
1 |
8.50 | 06/15/19 | 600 | 649,500 |
Total Energy | 8,989,750 | |||
Healthcare – 1.5% | ||||
CHS/Community Health Systems, Inc.
1 |
7.13 | 07/15/20 | 700 | 759,500 |
Fresenius Medical Care U.S. Finance II, Inc.
1,2,3 |
5.88 | 01/31/22 | 300 | 325,500 |
HCA, Inc.
1 |
5.88 | 05/01/23 | 150 | 155,250 |
HCA, Inc.
1 |
8.00 | 10/01/18 | 600 | 715,500 |
inVentiv Health, Inc.
1,2,3 |
9.00 | 01/15/18 | 600 | 642,000 |
Jaguar Holding Company II
1,2,3 |
9.50 | 12/01/19 | 600 | 660,000 |
Kindred Healthcare, Inc.
1,2,3 |
6.38 | 04/15/22 | 700 | 711,375 |
Polymer Group, Inc.
1 |
7.75 | 02/01/19 | 500 | 531,875 |
Service Corporation International
1 |
6.75 | 04/01/16 | 400 | 433,500 |
Service Corporation International
1 |
8.00 | 11/15/21 | 450 | 522,585 |
Total Healthcare | 5,457,085 | |||
Media – 1.4% | ||||
Cablevision Systems Corp.
1 |
5.88 | 09/15/22 | 100 | 101,750 |
Cablevision Systems Corp.
1 |
8.63 | 09/15/17 | 500 | 585,000 |
CCO Holdings LLC
1 |
5.75 | 01/15/24 | 250 | 257,188 |
CCO Holdings LLC
1 |
6.63 | 01/31/22 | 300 | 324,375 |
Cenveo Corp.
1 |
8.88 | 02/01/18 | 550 | 563,750 |
Clear Channel Worldwide Holdings, Inc.
1 |
7.63 | 03/15/20 | 750 | 806,250 |
Gannett Company, Inc.
1,2,3 |
6.38 | 10/15/23 | 500 | 533,750 |
Lamar Media Corp.
1,2,3 |
5.38 | 01/15/24 | 550 | 570,625 |
Mediacom Broadband LLC
1 |
6.38 | 04/01/23 | 550 | 580,250 |
Mediacom LLC
1 |
9.13 | 08/15/19 | 500 | 528,750 |
National CineMedia LLC
1 |
6.00 | 04/15/22 | 525 | 548,625 |
Total Media | 5,400,313 | |||
Services – 3.1% | ||||
Avis Budget Car Rental LLC
1 |
5.50 | 04/01/23 | 550 | 561,000 |
Avis Budget Car Rental LLC
1 |
8.25 | 01/15/19 | 202 | 215,797 |
Boyd Gaming Corp.
1 |
9.00 | 07/01/20 | 600 | 663,000 |
Casella Waste Systems, Inc.
1 |
7.75 | 02/15/19 | 550 | 577,500 |
Cedar Fair LP
1 |
5.25 | 03/15/21 | 200 | 205,000 |
Cedar Fair LP
1 |
9.13 | 08/01/18 | 350 | 369,687 |
Chester Downs & Marina LLC
1,2,3 |
9.25 | 02/01/20 | 825 | 814,687 |
H&E Equipment Services, Inc.
1 |
7.00 | 09/01/22 | 600 | 660,000 |
Interest
Rate |
Maturity | Principal
Amount (000s) |
Value | |
CORPORATE BONDS (continued) | ||||
Iron Mountain, Inc.
1 |
6.00% | 08/15/23 | $ 250 | $ 265,625 |
Iron Mountain, Inc.
1 |
8.38 | 08/15/21 | 500 | 526,250 |
Isle of Capri Casinos, Inc.
1 |
7.75 | 03/15/19 | 600 | 639,000 |
Jurassic Holdings III, Inc.
1,2,3 |
6.88 | 02/15/21 | 100 | 102,500 |
MGM Resorts International
1 |
7.63 | 01/15/17 | 350 | 397,687 |
MGM Resorts International
1 |
7.75 | 03/15/22 | 125 | 146,719 |
MGM Resorts International
1 |
8.63 | 02/01/19 | 275 | 327,937 |
MTR Gaming Group, Inc.
1 |
11.50 | 08/01/19 | 621 | 697,795 |
Palace Entertainment Holdings LLC
1,2,3 |
8.88 | 04/15/17 | 525 | 546,000 |
PulteGroup, Inc.
1 |
6.38 | 05/15/33 | 550 | 547,250 |
Scientific Games Corp.
1 |
8.13 | 09/15/18 | 450 | 472,500 |
Standard Pacific Corp.
1 |
8.38 | 05/15/18 | 300 | 354,000 |
Standard Pacific Corp.
1 |
8.38 | 01/15/21 | 450 | 535,500 |
The ADT Corp.
1 |
6.25 | 10/15/21 | 525 | 552,563 |
The Hertz Corp.
1 |
6.25 | 10/15/22 | 600 | 641,250 |
The Hertz Corp.
1 |
7.50 | 10/15/18 | 300 | 316,875 |
United Rentals North America, Inc.
1 |
7.63 | 04/15/22 | 450 | 510,188 |
Total Services | 11,646,310 | |||
Technology & Electronics – 0.3% | ||||
First Data Corp.
1,2,3 |
7.38 | 06/15/19 | 750 | 804,375 |
ION Geophysical Corp.
1 |
8.13 | 05/15/18 | 300 | 294,000 |
Total Technology & Electronics | 1,098,375 | |||
Telecommunications – 1.5% | ||||
Altice SA
2,3,8 |
7.75 | 05/15/22 | 200 | 210,250 |
CenturyLink, Inc.
1 |
7.65 | 03/15/42 | 300 | 301,125 |
Cincinnati Bell, Inc.
1 |
8.38 | 10/15/20 | 414 | 454,365 |
Cincinnati Bell, Inc.
1 |
8.75 | 03/15/18 | 275 | 288,406 |
Fairpoint Communications, Inc.
1,2,3 |
8.75 | 08/15/19 | 600 | 648,000 |
Frontier Communications Corp.
1 |
7.13 | 03/15/19 | 600 | 672,000 |
Intelsat Jackson Holdings SA
1,8 |
5.50 | 08/01/23 | 600 | 597,000 |
Level 3 Financing, Inc.
1 |
8.63 | 07/15/20 | 525 | 589,313 |
Qwest Capital Funding, Inc.
1 |
6.88 | 07/15/28 | 350 | 352,625 |
T-Mobile USA, Inc.
1 |
6.63 | 04/01/23 | 550 | 594,000 |
Wind Acquisition Finance SA
2,3,8 |
7.38 | 04/23/21 | 250 | 258,750 |
Windstream Corp.
1 |
7.50 | 06/01/22 | 525 | 564,375 |
Total Telecommunications | 5,530,209 | |||
TOTAL CORPORATE BONDS (Cost
$52,547,869) |
54,614,073 |
Shares | Value | |||
PREFERRED STOCK – 1.1% | ||||
Finance & Investment – 1.1% | ||||
Public Storage, 6.00%
|
160,000 | $ 3,992,000 | ||
PREFERRED STOCK (Cost $4,000,000)
|
3,992,000 | |||
Total Investments – 139.3% (Cost $502,389,979)
|
526,385,249 | |||
Liabilities in Excess of Other Assets – (39.3)%
|
(148,419,550) | |||
TOTAL NET ASSETS – 100.0%
|
$ 377,965,699 |
The following notes should be read in conjunction with the accompanying Schedule of Investments. | ||
1 | — Portion or entire principal amount delivered as collateral for reverse repurchase agreements. | |
2 | — 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 May 31, 2014, the total value of all such securities was $108,361,160 or 28.7% of net assets. | |
3 | — Private Placement. | |
4 | — Security is a “step up” bond where the coupon increases or steps up at a predetermined date. | |
5 | — Investment in subprime security. As of May 31, 2014, the total value of all such securities was $58,331,526 or 15.4% of net assets. | |
6 | — 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 May 31, 2014, the total value of all such securities was $51,911,962 or 13.7% of net assets. | |
7 | — Variable rate security – Interest rate shown is the rate in effect as of May 31, 2014. | |
8 | — Foreign security or a U.S. security of a foreign company. | |
9 | — Security is a “step up” bond where the coupon increases or steps up at a predetermined date. At that date, the coupon increases to LIBOR plus a predetermined margin. | |
10 | — Security is an inverse floating rate bond. The bond coupon is calculated by subtracting a variable rate or a multiple of a variable rate from a fixed interest rate. | |
11 | — Security fair valued in good faith pursuant to the fair value procedures adopted by the Board of Directors. As of May 31, 2014, the total value of all such securities was $435,689 or 0.1% of net assets. | |
12 | — Interest rate is based on the notional amount of the underlying mortgage pools. | |
TBA | — To Be Announced. |
Assets: | |
Investments in securities, at value (cost
$489,803,344) |
$513,830,364 |
Investments in mezzanine loans, at value (cost
$12,586,635) |
12,554,885 |
Total investments, at value (cost $502,389,979) (Note
2) |
526,385,249 |
Cash |
17,431,472 |
Cash collateral for reverse repurchase
agreements |
1,054,948 |
Interest
receivable |
2,835,406 |
Receivable for investments
sold |
2,318,718 |
Principal paydown
receivable |
6,756 |
Prepaid
expenses |
26,589 |
Total
assets |
550,059,138 |
Liabilities: | |
Reverse repurchase agreements (Note
6) |
159,298,000 |
Interest payable for reverse repurchase agreements (Note
6) |
466,838 |
Payable for investments
purchased |
7,459,234 |
Payable for TBA
transactions |
4,194,889 |
Investment advisory fee payable (Note
4) |
405,083 |
Administration fee payable (Note
4) |
124,641 |
Directors' fee
payable |
7,326 |
Accrued
expenses |
137,428 |
Total
liabilities |
172,093,439 |
Net
Assets |
$377,965,699 |
Composition of Net Assets: | |
Capital stock, at par value ($0.01 par value, 50,000,000 shares authorized) (Note
7) |
$ 139,607 |
Additional paid-in capital (Note
7) |
440,871,438 |
Distributions in excess of net investment
income |
(725,606) |
Accumulated net realized loss on investment transactions and futures
transactions |
(86,315,010) |
Net unrealized appreciation on
investments |
23,995,270 |
Net assets applicable to capital stock
outstanding |
$377,965,699 |
Shares Outstanding and Net Asset Value Per Share: | |
Common shares
outstanding |
13,960,683 |
Net asset value per
share |
$ 27.07 |
Investment Income (Note 2) | |
Interest |
$18,096,871 |
Expenses: | |
Investment advisory fees (Note
4) |
1,193,796 |
Administration fees (Note
4) |
367,322 |
Directors'
fees |
63,576 |
Legal
fees |
48,137 |
Fund accounting servicing
fees |
43,135 |
Reports to
stockholders |
41,500 |
Audit and tax
services |
32,411 |
Insurance |
23,261 |
Transfer agent
fees |
18,238 |
Registration
fees |
11,572 |
Custodian
fees |
11,483 |
Miscellaneous |
5,679 |
Total operating
expenses |
1,860,110 |
Interest expense on reverse repurchase agreements (Note
6) |
1,047,188 |
Total
expenses |
2,907,298 |
Net investment
income |
15,189,573 |
Realized and Unrealized Gain (Loss) on Investments (Note 2): | |
Net realized gain on investment
transactions |
2,900,234 |
Net change in unrealized appreciation on
investments |
12,390,038 |
Net realized and unrealized gain on
investments |
15,290,272 |
Net increase in net assets resulting from
operations |
$30,479,845 |
For
the Six Months Ended May 31, 2014 (Unaudited) |
For
the Fiscal Year Ended November 30, 2013 | ||
Increase (Decrease) in Net Assets Resulting from Operations: | |||
Net investment
income |
$ 15,189,573 | $ 29,044,043 | |
Net realized gain (loss) on investment transactions and futures
transactions |
2,900,234 | (4,647,333) | |
Net change in unrealized appreciation on investments and
futures |
12,390,038 | 27,427,335 | |
Net increase in net assets resulting from
operations |
30,479,845 | 51,824,045 | |
Distributions to Stockholders (Note 2): | |||
Net investment
income |
(15,915,179) | (29,305,886) | |
Return of
capital |
— | (2,523,318) | |
Total distributions
paid |
(15,915,179) | (31,829,204) | |
Capital Stock Transactions (Note 7): | |||
Proceeds from rights offering, net of offering
costs |
— | 73,021 * | |
Reinvestment of
distributions |
— | 29,572 | |
Net increase in net assets from capital stock
transactions |
— | 102,593 | |
Total increase in net
assets |
14,564,666 | 20,097,434 | |
Net Assets: | |||
Beginning of
period |
363,401,033 | 343,303,599 | |
End of
period |
$377,965,699 | $363,401,033 | |
(including distributions in excess of net investment income
of) |
$ (725,606) | $ — | |
Share Transactions: | |||
Reinvested
shares |
— | 1,122 |
* | This amount represents an adjustment to the offering costs that were charged to paid-in capital in connection with the rights offering. |
Increase (Decrease) in Cash: | ||
Cash flows provided by (used for) operating activities: | ||
Net increase in net assets resulting from
operations |
$ 30,479,845 | |
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities: | ||
Purchases of long-term portfolio
investments |
(77,570,910) | |
Proceeds from disposition of long-term portfolio investments and principal
paydowns |
78,254,700 | |
Purchases of TBA transactions,
net |
(55,781) | |
Decrease in interest
receivable |
141,046 | |
Decrease in receivable for investments
sold |
415,653 | |
Decrease in principal paydown
receivable |
1,511 | |
Decrease in prepaid
expenses |
11,082 | |
Increase in payable for investments
purchased |
7,197,086 | |
Increase in payable for TBA
transactions |
121,625 | |
Increase in interest payable for reverse repurchase
agreements |
150,197 | |
Increase in investment advisory fee
payable |
211,524 | |
Increase in administration fee
payable |
65,084 | |
Increase in directors' fee
payable |
7,326 | |
Increase in accrued
expenses |
13,228 | |
Net accretion or amortization on investments and paydown gains or losses on
investments |
(10,093,178) | |
Unrealized appreciation on
investments |
(12,390,038) | |
Net realized gain on investment
transactions |
(2,900,234) | |
Net cash provided by operating
activities |
14,059,766 | |
Cash flows used for financing activities: | ||
Net cash used for reverse repurchase
agreements |
(4,241,840) | |
Distributions paid to stockholders, net of
reinvestments |
(15,915,179) | |
Net cash used for financing
activities |
(20,157,019) | |
Net decrease in
cash |
(6,097,253) | |
Cash at beginning of
period |
24,583,673 | |
Cash at end of
period |
$ 18,486,420 | |
Supplemental Disclosure of Cash Flow Information: | ||
Interest payments on the reverse repurchase agreements for the period ended May 31, 2014, totaled $896,991. | ||
Cash at the end of the period includes $1,054,948 for collateral for reverse repurchase agreements. |
For the Six Months Ended May 31, | For the Fiscal Years Ended November 30, | ||||||||||
2014
(Unaudited) |
2013 | 2012 | 2011 5 | 2010 5 | 2009 5 | ||||||
Per Share Operating Performance: | |||||||||||
Net asset value, beginning of
period |
$ 26.03 | $ 24.59 | $ 22.80 | $ 24.80 | $ 21.84 | $ 19.48 | |||||
Net investment
income |
1.09 | 2.08 | 2.24 | 1.68 | 2.12 | 2.04 | |||||
Net realized and unrealized gain (loss) on investment
transactions |
1.09 | 1.64 | 3.01 | (1.20) | 2.92 | 2.60 | |||||
Net increase in net asset value resulting from
operations |
2.18 | 3.72 | 5.25 | 0.48 | 5.04 | 4.64 | |||||
Distributions from net investment
income |
(1.14) | (2.10) | (2.24) | (1.84) | (2.08) | (2.28) | |||||
Return of capital
distributions |
— | (0.18) | (0.04) | (0.64) | — | — | |||||
Total distributions
paid |
(1.14) | (2.28) | (2.28) | (2.48) | (2.08) | (2.28) | |||||
Change due to rights
offering1 |
— | — | (1.18) | — | — | — | |||||
Net asset value, end of
period |
$ 27.07 | $ 26.03 | $ 24.59 | $ 22.80 | $ 24.80 | $ 21.84 | |||||
Market price, end of
period |
$ 24.82 | $ 23.31 | $ 24.05 | $ 22.56 | $ 24.04 | $ 20.80 | |||||
Total Investment
Return† |
11.61% 2 | 6.41% | 17.29% | 4.11% | 26.63% | 32.45% | |||||
Ratios
to Average Net Assets/ Supplementary Data: |
|||||||||||
Net assets, end of period
(000s) |
$377,966 | $363,401 | $343,304 | $176,463 | $191,738 | $168,907 | |||||
Operating
expenses |
1.01% 3 | 1.04% | 1.30% | 1.18% | 1.23% | 1.29% | |||||
Interest
expense |
0.57% 3 | 0.39% | 0.41% | 0.53% | 0.31% | 0.14% | |||||
Total
expenses |
1.58% 3 | 1.43% | 1.71% | 1.71% | 1.54% | 1.43% | |||||
Net investment
income |
8.27% 3 | 8.13% | 9.19% | 6.83% | 9.34% | 10.01% | |||||
Portfolio turnover
rate |
15% 2 | 38% | 75% | 43% | 204% | 73% | |||||
Reverse repurchase agreements, end of period
(000s) |
159,298 | 163,540 | 103,490 | 80,781 | 80,781 | 81,513 | |||||
Asset coverage per $1,000 unit of senior
indebtedness4 |
3,373 | 3,222 | 4,317 | 3,184 | 3,184 | 3,352 |
† | 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 | Effective as of the close of business on September 20, 2012, the Fund issued transferrable rights to its stockholders to subscribe for up to 3,500,000 shares of common stock at a rate of one share for every 3 rights held. The subscription price was set at 90% of the average closing price for the last 5 trading days of the offering period. The shares were subscribed at a price of $21.50 which was less than the NAV of $25.35 thus creating a dilutive effect on the NAV. | |||||
2 | Not annualized. | |||||
3 | Annualized. | |||||
4 | 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. | |||||
5 | The Fund had a 1:4 reverse stock split with ex-dividend and payable dates of August 21, 2012 and August 22, 2012, respectively. Prior year net asset values and per share amounts have been restated to reflect the impact of the reverse stock split. (See Notes to Financial Statements). The net asset value and market price reported at the original dates prior to the reverse stock split were as follows: |
For the Fiscal Years Ended November 30, | 2011 | 2010 | 2009 |
Net Asset Value (prior to reverse stock
split) |
$5.70 | $6.20 | $5.46 |
Market Price (prior to reverse stock
split) |
$5.64 | $6.01 | $5.20 |
• | Level 1 - | quoted prices in active markets for identical investments |
• | Level 2 - | quoted prices in markets that are not active or other significant observable inputs (including, but not limited to: quoted prices for similar investments, quoted prices based on recently executed transactions, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 - | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
Valuation Inputs | Level 1 | Level 2 | Level 3 | Total | |||
U.S. Government & Agency
Obligations |
$ — | $ 16,724,228 | $ 4,233,752 | $ 20,957,980 | |||
Asset-Backed
Securities |
— | 15,483,836 | 3,060,967 | 18,544,803 | |||
Residential Mortgage Related
Holdings |
— | 3,499,396 | 154,122,935 | 157,622,331 | |||
Commercial Mortgage Related
Holdings |
— | — | 250,555,142 | 250,555,142 | |||
Interest-Only
Securities |
— | 690,492 | 19,408,428 | 20,098,920 | |||
Corporate
Bonds |
— | 54,614,073 | — | 54,614,073 | |||
Preferred
Stock |
3,992,000 | — | — | 3,992,000 | |||
Total | $ 3,992,000 | $ 91,012,025 | $ 431,381,224 | $ 526,385,249 |
Quantitative Information about Level 3 Fair Value Measurements(1) | ||||
Assets | Fair Value as of May 31, 2014 | Valuation Methodology | Significant Unobservable Input | Price |
Residential Mortgage Related
Holdings |
$ 11,887 | Discounted Cash Flow | Constant Prepayment Rate | $ 10.65 |
Commercial Mortgage Related
Holdings |
423,802 | Market comparable companies | Implied Spread to Index | 104.00 |
Total |
$435,689 |
Investments in Securities | U.S. Government & Agency Obligations | Asset-
Backed Securities |
Residential Mortgage Related Holdings | Commercial Mortgage Related Holdings | Interest-Only Securities | Total | |||||
Balance as of November 30,
2013 |
$ 6,139 | $ 2,673,331 | $126,680,108 | $253,310,599 | $18,000,567 | $400,670,744 | |||||
Accrued Discounts
(Premiums) |
45 | — | 802,689 | 3,293,901 | (775,933) | 3,320,702 | |||||
Realized Gain
(Loss) |
34,310 | 76,864 | 10,407,170 | (122,159) | 7,587,163 | 17,983,348 | |||||
Change in Unrealized Appreciation
(Depreciation) |
223,673 | 11,177 | 4,557,472 | 7,445,292 | (25,715) | 12,211,899 | |||||
Purchases at
cost |
4,190,000 | 3,000,000 | 49,050,939 | 2,229,688 | 2,617,553 | 61,088,180 | |||||
Sales
proceeds |
(220,415) | (2,700,405) | (37,375,443) | (15,602,179) | (7,995,207) | (63,893,649) | |||||
Balance as of May 31, 2014 | $4,233,752 | $ 3,060,967 | $154,122,935 | $250,555,142 | $19,408,428 | $431,381,224 | |||||
Change in unrealized gains or losses relating to assets still held at reporting
date: |
$ 43,752 | $ 11,177 | $ 6,074,740 | $ 7,363,896 | $ (25,715) | $ 13,467,850 |
Security Name | Interest Rate | Principal Amount | Current Payable |
Federal Home Loan Mortgage
Corporation |
4.00% | $4,000,000 | $4,194,889 |
Long-Term Securities (excluding U.S. Government Securities) | U.S. Government Securities | |||
Purchases | Sales | Purchases | Sales | |
$74,953,357 | $76,058,136 | $2,617,553 | $2,196,564 |
Face Value | Description | Maturity Amount |
$ 715,000 |
Credit Suisse, 0.37%, dated 05/05/14, maturity
08/05/14 |
$ 715,676 |
8,861,000 |
Goldman Sachs, 0.40%, dated 05/07/14, maturity
08/07/14 |
8,870,058 |
6,345,000 |
JP Morgan Chase, 0.38%, dated 04/09/14, maturity
07/08/14 |
6,351,028 |
5,772,000 |
JP Morgan Chase, 1.00%, dated 05/08/14, maturity
06/09/14 |
5,777,131 |
2,931,000 |
JP Morgan Chase, 1.00%, dated 05/28/14, maturity
06/27/14 |
2,933,444 |
998,000 |
JP Morgan Chase, 1.03%, dated 04/16/14, maturity
07/16/14 |
1,000,589 |
2,604,000 |
JP Morgan Chase, 1.13%, dated 04/16/14, maturity
07/16/14 |
2,611,414 |
1,955,000 |
JP Morgan Chase, 1.13%, dated 04/23/14, maturity
07/23/14 |
1,960,577 |
11,923,000 |
JP Morgan Chase, 1.18%, dated 04/16/14, maturity
07/16/14 |
11,958,455 |
6,440,000 |
JP Morgan Chase, 1.57%, dated 04/30/14, maturity
07/29/14 |
6,465,331 |
4,605,000 |
RBC Capital Markets, 0.86%, dated 04/01/14, maturity
07/01/14 |
4,614,992 |
1,166,000 |
RBC Capital Markets, 0.93%, dated 04/01/14, maturity
09/11/14 |
1,170,926 |
34,750,000 |
RBC Capital Markets, 0.95%, dated 04/01/14, maturity
10/01/14 |
34,918,502 |
182,000 |
RBC Capital Markets, 0.95%, dated 04/10/14, maturity
10/01/14 |
182,839 |
1,041,000 |
RBC Capital Markets, 0.95%, dated 05/08/14, maturity
10/01/14 |
1,045,027 |
1,222,000 |
RBC Capital Markets, 0.96%, dated 03/11/14, maturity
09/11/14 |
1,227,976 |
470,000 |
RBC Capital Markets, 0.96%, dated 05/05/14, maturity
09/11/14 |
471,611 |
5,569,000 |
RBC Capital Markets, 0.98%, dated 04/16/14, maturity
07/16/14 |
5,582,777 |
4,542,000 |
RBC Capital Markets, 1.13%, dated 04/16/14, maturity
07/16/14 |
4,554,958 |
8,116,000 |
RBC Capital Markets, 1.53%, dated 04/16/14, maturity
07/16/14 |
8,147,361 |
5,011,000 |
RBC Capital Markets, 1.58%, dated 04/02/14, maturity
07/02/14 |
5,031,021 |
5,307,000 |
RBC Capital Markets, 1.58%, dated 04/16/14, maturity
07/16/14 |
5,328,177 |
4,725,000 |
RBC Capital Markets, 1.60%, dated 12/17/13, maturity
06/12/14 |
4,762,063 |
3,254,000 |
RBC Capital Markets, 1.68%, dated 03/06/14, maturity
08/26/14 |
3,280,294 |
28,837,000 |
RBC Capital Markets, 1.90%, dated 12/17/13, maturity
06/12/14 |
29,105,733 |
1,957,000 |
Wells Fargo Advisors, 1.65%, dated 05/28/14, maturity
06/27/14 |
1,959,692 |
$159,298,000 |
Maturity Amount, Including Interest
Payable |
$160,027,652 |
Market Value of Assets Sold Under
Agreements |
$208,700,110 | |
Weighted Average Interest
Rate |
1.25% |
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 |
$159,298,000 | $— | $159,298,000 | $159,298,000 | $— | $— |
Ordinary
income |
$29,305,886 |
Return of
capital |
2,523,318 |
Total
distributions |
$31,829,204 |
Capital loss
carryforward(1) |
$(89,063,840) |
Post-October capital loss
deferral |
(151,404) |
Book basis unrealized
appreciation |
11,605,232 |
Plus: Cumulative timing
difference |
— |
Tax basis unrealized appreciation on
investments |
11,605,232 |
Total tax basis net accumulated
losses |
$(77,610,012) |
Expiring In: | |
2014 |
$ 1,719,287 |
2015 |
3,792,571 |
2016 |
7,710,904 |
2017 |
38,404,880 |
2018 |
18,161,948 |
2019 |
12,712,591 |
Infinite |
6,561,659 |
Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation |
$502,389,979 | $42,901,936 | $(18,906,666) | $23,995,270 |
Dividend Per Share | Record Date | Payable Date |
$0.19 | June 19, 2014 | June 26, 2014 |
$0.19 | July 24, 2014 | July 31, 2014 |
Shares Voted For | Shares Voted Against | Shares Voted Abstain | ||
1 | To elect to the Fund's Board of Directors Louis P. Salvatore | 11,790,952 | 234,425 | — |
2 | To elect to the Fund's Board of Directors Edward A. Kuczmarski | 11,788,080 | 237,297 | — |
3 | To elect to the Fund's Board of Directors Jonathan C. Tyras | 11,780,797 | 244,580 | — |
• | 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. Schedule of Investments.
Please see Item 1.
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.
There has been no change as of the date of this filing, in the portfolio managers identified in response to paragraph (a)(1) of this Item in the Registrants most recently filed annual report to Form N-CSR.
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.
None.
2
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) Not applicable.
(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.
3
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 TOTAL RETURN FUND INC
By: |
/s/ BRIAN F. HURLEY | |
Brian F. Hurley | ||
President and Principal Executive Officer |
Date: August 5, 2014
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: August 5, 2014
By: | /s/ ANGELA W. GHANTOUS | |
Angela W. Ghantous | ||
Treasurer and Principal Financial Officer |
Date: August 5, 2014
4
CERT
CERTIFICATION
I, Brian F. Hurley, certify that:
1. I have reviewed this report on Form N-CSR of BROOKFIELD TOTAL RETURN 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: August 5, 2014 | /s/ BRIAN F. HURLEY |
|||
Brian F. Hurley | ||||
President and Principal Executive Officer |
5
CERTIFICATION
I, Angela W. Ghantous, certify that:
1. I have reviewed this report on Form N-CSR of BROOKFIELD TOTAL RETURN 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: August 5, 2014 | /s/ ANGELA W. GHANTOUS |
|||
Angela W. Ghantous | ||||
Treasurer and Principal Financial Officer |
6
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 TOTAL RETURN 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 aesults of operations of the Registrant. |
Dated: August 5, 2014 | /s/ BRIAN F. HURLEY |
|||
Brian F. Hurley | ||||
President and Principal Executive Officer | ||||
BROOKFIELD TOTAL RETURN FUND INC. |
Dated: August 5, 2014 | /s/ ANGELA W. GHANTOUS |
|||
Angela W. Ghantous | ||||
Treasurer and Principal Financial Officer | ||||
BROOKFIELD TOTAL RETURN 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 TOTAL RETURN FUND INC. and will be retained by BROOKFIELD TOTAL RETURN FUND INC. and furnished to the Securities and Exchange Commission or its staff upon request.
7
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