Brookfield Asset Management Inc. (NYSE: BAM, TSX: BAM.A) today
announced financial results for the quarter ended June 30,
2021.
Nick Goodman, CFO of Brookfield, stated, “Our
business performed very well during the quarter, recording
$1.2 billion of distributable earnings. Growth in our asset
management franchise, steady returns on our principal investments
and continued momentum on our capital recycling initiatives all
contributed to the strong quarter. Subsequent to quarter end, we
held the first close of $9 billion for our fourth flagship real
estate fund, and our $7 billion founders’ close for our Global
Transition Fund, taking total fundraising since last quarter to
$24 billion. We expect the size of these two funds to exceed
$30 billion before they close for capital.”
Operating Results
| UnauditedFor the
periods ended June 30(US$ millions, except per share amounts) |
Three Months Ended |
|
Last Twelve Months Ended |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Net income1 |
$ |
2,429 |
|
|
$ |
(1,493 |
) |
|
$ |
8,562 |
|
|
$ |
1,744 |
|
| Net income attributable to
common shareholders2 |
$ |
816 |
|
|
$ |
(656 |
) |
|
$ |
2,866 |
|
|
$ |
844 |
|
|
Net income per Brookfield share2 |
0.49 |
|
|
(0.43 |
) |
|
1.76 |
|
|
0.47 |
|
| Funds from operations2,3 |
$ |
1,600 |
|
|
$ |
1,161 |
|
|
$ |
7,556 |
|
|
$ |
4,075 |
|
|
Per Brookfield share2,3 |
1.01 |
|
|
0.73 |
|
|
4.80 |
|
|
2.59 |
|
|
Distributable earnings |
$ |
1,232 |
|
|
$ |
1,081 |
|
|
$ |
6,254 |
|
|
$ |
3,009 |
|
- Consolidated basis – includes amounts attributable to
non-controlling interests.
- Excludes amounts attributable to non-controlling
interests.
- See Basis of Presentation on page 8 and a reconciliation of net
income (loss) to FFO on page 5.
Funds from operations (FFO) and net income in
the quarter were strong at $1.6 billion and $2.4 billion,
respectively, both very large increases over last year.
Our distributable earnings continue to show
strong growth, recording $1.2 billion for the quarter, and $6.3
billion over the last twelve months, a 108% increase over the
comparative period. The strong performance in the quarter is
supported by a 49% increase in fee-related earnings, continued
carried interest realizations, increased distributions from our
principal investments, and disposition gains recognized on our
principal investments.
Monetization activity continued during the
quarter as we sold $8 billion of investments, returned
$6 billion to clients, and realized $335 million of gross
carried interest in the process, taking the total realized since
the beginning of the year to more than $1 billion. Investment
performance was also very strong in the quarter with our unrealized
carried interest balance, not recorded in our financial accounts,
increasing to $6.2 billion.
Regular Dividend
Declaration
The Board declared a quarterly dividend of
US$0.13 per share, payable on September 29, 2021 to shareholders of
record as at the close of business on August 31, 2021. The Board
also declared the regular monthly and quarterly dividends on its
preferred shares.
Operating Highlights
Fee-bearing capital increased to
$325 billion during the quarter, an increase of approximately
$48 billion over the last twelve months, leading to a $334 million
increase in fee-related earnings over the same period.
Inflows during the
quarter totaled $8 billion, across several of our perpetual
and long-term fund strategies, as well as a first close of our
latest real estate debt fund and further capital raised for our
Special Investments strategy. We also currently have approximately
$32 billion of additional committed but un-invested capital across
our strategies that will earn approximately $320 million of
fees annually once deployed.
Our latest round of flagship funds is off to a
very strong start with over $30 billion raised to date after strong
first closes for our recently launched real estate and transition
flagship funds.
Subsequent to quarter
end, we held first closes for our new Global Transition Fund at $7
billion and our fourth flagship strategic real estate fund of $9
billion. The reception among existing clients to both strategies
has been very positive which has resulted in strong retention rates
and cross selling. Our added distribution capabilities have also
led to a number of investors making their first commitment to a
Brookfield strategy. This capital is in addition to the $15 billion
raised for our latest opportunistic credit flagship fund.
With two large
acquisitions in recent months, our fifth private equity flagship
fund is over 75% committed which means we will be shortly launching
our sixth vintage fund. Our infrastructure fund is also making
great progress on deployment and is approximately 70% invested or
committed. We expect to launch the next vintage for this strategy
by the end of this year or early in 2022.
We recorded $1.5 billion of realized
carried interest into income over the last twelve months, including
$335 million during the quarter.
We completed
$8 billion of monetizations during the quarter, allowing us to
return $6 billion to our clients and realize $335 million
of carried interest across several of our earlier vintage funds. We
have now surpassed our goal of realizing over $1 billion of carried
interest during the year and expect the total to continue growing
as we execute on more planned asset sales.
Investment
performance was strong in the quarter. We generated
$1.1 billion of carried interest, representing growth of 20%
in our accumulated unrealized carried interest, taking the total to
$6.2 billion.
Annualized fee revenues and target carried
interest now stand at a run-rate of $6.7 billion.
Annualized fee
revenues and annualized fee-related earnings are now $3.4 billion
and $1.6 billion, respectively, largely driven by increased
fee-bearing capital across both our private fund and listed
strategies. Gross target carried interest stands at $3.3 billion,
or $1.8 billion net of costs.
As at June 30, 2021, we had $78 billion of
capital available to deploy into new investments.
Deployable capital of
$78 billion includes approximately $18 billion of cash, financial
assets and undrawn lines of credit in BAM and our affiliates and
$60 billion of uncalled fund commitments available for new
transactions. During the quarter, we bolstered our liquidity
through the continued sell down of approximately $300 million of
West Fraser shares from our principal investments, and subsequent
to the quarter we issued $850 million of long dated bonds – 2.34%
10-year green bonds and 3.26% 30-year bonds which further
strengthens our position as a market leader in sustainable
finance.
CONSOLIDATED BALANCE SHEETS
| Unaudited (US$
millions) |
|
June 30 |
|
|
December 31 |
|
|
|
2021 |
|
|
2020 |
|
|
Assets |
|
|
|
|
|
Cash and cash equivalents |
|
$ |
10,459 |
|
|
$ |
9,933 |
|
| Other financial assets |
|
19,016 |
|
|
17,730 |
|
| Accounts receivable and
other |
|
22,758 |
|
|
24,845 |
|
| Inventory |
|
11,187 |
|
|
10,360 |
|
| Equity accounted
investments |
|
43,315 |
|
|
41,327 |
|
| Investment properties |
|
101,010 |
|
|
96,782 |
|
| Property, plant and
equipment |
|
98,086 |
|
|
100,009 |
|
| Intangible assets |
|
25,018 |
|
|
24,658 |
|
| Goodwill |
|
14,953 |
|
|
14,714 |
|
|
Deferred income tax assets |
|
3,415 |
|
|
3,338 |
|
|
Total Assets |
|
$ |
349,217 |
|
|
$ |
343,696 |
|
|
|
|
|
|
|
| Liabilities and
Equity |
|
|
|
|
| Corporate borrowings |
|
$ |
9,145 |
|
|
$ |
9,077 |
|
| |
|
|
|
|
| Accounts payable and
other |
|
51,617 |
|
|
53,041 |
|
| Non-recourse borrowings in
entities that we manage |
|
143,126 |
|
|
139,324 |
|
| Subsidiary equity
obligations |
|
3,478 |
|
|
3,699 |
|
| Deferred income tax
liabilities |
|
15,914 |
|
|
15,913 |
|
| |
|
|
|
|
| Equity |
|
|
|
|
|
Preferred equity |
$ |
4,145 |
|
$ |
4,145 |
|
|
|
Non-controlling interests in net assets |
88,423 |
|
86,804 |
|
|
|
Common equity |
33,369 |
125,937 |
|
31,693 |
|
122,642 |
|
|
Total Liabilities and Equity |
|
$ |
349,217 |
|
|
$ |
343,696 |
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
| UnauditedFor the
periods ended June 30(US$ millions, except per share amounts) |
Three Months Ended |
|
Six Months Ended |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Revenues |
$ |
18,286 |
|
|
$ |
12,829 |
|
|
$ |
34,696 |
|
|
$ |
29,415 |
|
| Direct costs |
(13,994 |
) |
|
(9,446 |
) |
|
(26,181 |
) |
|
(22,155 |
) |
| Other income and gains |
1,251 |
|
|
29 |
|
|
1,955 |
|
|
270 |
|
| Equity accounted income
(loss) |
488 |
|
|
(631 |
) |
|
1,156 |
|
|
(843 |
) |
| Expenses |
|
|
|
|
|
|
|
|
Interest |
(1,831 |
) |
|
(1,715 |
) |
|
(3,661 |
) |
|
(3,567 |
) |
|
Corporate costs |
(30 |
) |
|
(25 |
) |
|
(59 |
) |
|
(49 |
) |
| Fair value changes |
377 |
|
|
(1,153 |
) |
|
2,471 |
|
|
(1,567 |
) |
| Depreciation and
amortization |
(1,571 |
) |
|
(1,376 |
) |
|
(3,081 |
) |
|
(2,785 |
) |
| Income
tax |
(547 |
) |
|
(5 |
) |
|
(1,091 |
) |
|
(369 |
) |
|
Net income (loss) |
$ |
2,429 |
|
|
$ |
(1,493 |
) |
|
$ |
6,205 |
|
|
$ |
(1,650 |
) |
|
|
|
|
|
|
|
|
|
| Net income (loss) attributable
to: |
|
|
|
|
|
|
|
|
Brookfield shareholders |
$ |
816 |
|
|
$ |
(656 |
) |
|
$ |
2,051 |
|
|
$ |
(949 |
) |
|
Non-controlling interests |
1,613 |
|
|
(837 |
) |
|
4,154 |
|
|
(701 |
) |
|
|
$ |
2,429 |
|
|
$ |
(1,493 |
) |
|
$ |
6,205 |
|
|
$ |
(1,650 |
) |
|
|
|
|
|
|
|
|
|
| Net income (loss) per
share1 |
|
|
|
|
|
|
|
|
Diluted |
$ |
0.49 |
|
|
$ |
(0.43 |
) |
|
$ |
1.26 |
|
|
$ |
(0.63 |
) |
|
Basic |
0.51 |
|
|
(0.43 |
) |
|
1.29 |
|
|
(0.63 |
) |
- Adjusted to reflect
the three-for-two stock split effective April 1, 2020.
SUMMARIZED FINANCIAL
RESULTS
RECONCILIATION OF NET INCOME (LOSS) TO
FUNDS FROM OPERATIONS
| UnauditedFor the
periods ended June 30(US$ millions) |
Three Months Ended |
|
Last Twelve Months Ended |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Net income (loss) |
$ |
2,429 |
|
|
$ |
(1,493 |
) |
|
$ |
8,562 |
|
|
$ |
1,744 |
|
| Financial statement components
not included in FFO |
|
|
|
|
|
|
|
|
Equity accounted fair value changes and other non-FFO items |
328 |
|
|
1,253 |
|
|
1,595 |
|
|
2,462 |
|
|
Fair value changes |
(377 |
) |
|
1,153 |
|
|
(2,615 |
) |
|
1,169 |
|
|
Depreciation and amortization |
1,571 |
|
|
1,376 |
|
|
6,087 |
|
|
5,393 |
|
|
Deferred income taxes |
301 |
|
|
(96 |
) |
|
499 |
|
|
(459 |
) |
| Realized disposition gains in
fair value changes or prior periods |
488 |
|
|
469 |
|
|
3,204 |
|
|
944 |
|
|
Non-controlling interests |
(3,140 |
) |
|
(1,501 |
) |
|
(9,776 |
) |
|
(7,178 |
) |
|
Funds from operations1,2 |
$ |
1,600 |
|
|
$ |
1,161 |
|
|
$ |
7,556 |
|
|
$ |
4,075 |
|
SEGMENT FUNDS FROM
OPERATIONS
| UnauditedFor the
periods ended June 30(US$ millions, except per share amounts) |
Three Months Ended |
|
Last Twelve Months Ended |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Asset management |
$ |
688 |
|
|
$ |
355 |
|
|
$ |
2,365 |
|
|
$ |
1,609 |
|
| Real estate |
189 |
|
|
89 |
|
|
1,007 |
|
|
927 |
|
| Renewable power |
88 |
|
|
566 |
|
|
1,323 |
|
|
742 |
|
| Infrastructure |
317 |
|
|
84 |
|
|
795 |
|
|
429 |
|
| Private equity |
337 |
|
|
137 |
|
|
1,962 |
|
|
645 |
|
| Residential |
42 |
|
|
(11 |
) |
|
151 |
|
|
109 |
|
|
Corporate |
(61 |
) |
|
(59 |
) |
|
(47 |
) |
|
(386 |
) |
|
Funds from operations1,2 |
$ |
1,600 |
|
|
$ |
1,161 |
|
|
$ |
7,556 |
|
|
$ |
4,075 |
|
|
|
|
|
|
|
|
|
|
| Per
share3,4 |
$ |
1.01 |
|
|
$ |
0.73 |
|
|
$ |
4.80 |
|
|
$ |
2.59 |
|
- Non-IFRS measure –
see Basis of Presentation on page 8.
- Excludes amounts attributable to
non-controlling interests.
- Adjusted to reflect the
three-for-two stock split effective April 1, 2020.
- Per share amounts are inclusive of
dilutive effect of mandatorily redeemable preferred shares held in
a consolidated subsidiary.
EARNINGS PER SHARE
| UnauditedFor the
periods ended June 30(US$ millions, except per share amounts) |
Three Months Ended |
|
Last Twelve Months Ended |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Net income (loss) |
$ |
2,429 |
|
|
$ |
(1,493 |
) |
|
$ |
8,562 |
|
|
$ |
1,744 |
|
|
Non-controlling interests |
(1,613 |
) |
|
837 |
|
|
(5,696 |
) |
|
(900 |
) |
|
Net income (loss) attributable to shareholders |
816 |
|
|
(656 |
) |
|
2,866 |
|
|
844 |
|
| Preferred share dividends |
(38 |
) |
|
(36 |
) |
|
(145 |
) |
|
(148 |
) |
|
Dilutive effect of conversion of subsidiary preferred shares
and exchangeable shares of affiliate |
(14 |
) |
|
49 |
|
|
— |
|
|
12 |
|
|
Net income (loss) available to common shareholders |
$ |
764 |
|
|
$ |
(643 |
) |
|
$ |
2,721 |
|
|
$ |
708 |
|
|
|
|
|
|
|
|
|
|
| Weighted average shares1 |
1,508.2 |
|
|
1,512.1 |
|
|
1,510.2 |
|
|
1,487.7 |
|
|
Dilutive effect of conversion of options and escrowed shares
using treasury stock method1,2 and exchangeable shares
of affiliate |
41.8 |
|
|
— |
|
|
32.9 |
|
|
29.4 |
|
|
Shares and share equivalents1 |
1,550.0 |
|
|
1,512.1 |
|
|
1,543.1 |
|
|
1,517.1 |
|
|
|
|
|
|
|
|
|
|
| Diluted
earnings per share1,3 |
$ |
0.49 |
|
|
$ |
(0.43 |
) |
|
$ |
1.76 |
|
|
$ |
0.47 |
|
- Adjusted to reflect
the three-for-two stock split effective April 1, 2020.
- Includes management share option
plan and escrowed stock plan.
- Per share amounts are inclusive of
dilutive effect of mandatorily redeemable preferred shares held in
a consolidated subsidiary.
DISTRIBUTABLE EARNINGS
|
UnauditedFor the periods ended June 30(US$ millions) |
Three Months Ended |
|
Last Twelve Months Ended |
|
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Fee-related earnings |
$ |
483 |
|
|
$ |
324 |
|
|
$ |
1,679 |
|
|
$ |
1,345 |
|
| |
|
|
|
|
|
|
|
|
Listed affiliates |
361 |
|
|
348 |
|
|
1,419 |
|
|
1,372 |
|
|
Corporate cash and financial assets |
20 |
|
|
79 |
|
|
336 |
|
|
124 |
|
|
Other principal investments |
96 |
|
|
(28 |
) |
|
288 |
|
|
16 |
|
|
Distributions from investments |
477 |
|
|
399 |
|
|
2,043 |
|
|
1,512 |
|
| |
|
|
|
|
|
|
|
| Corporate activities |
(144 |
) |
|
(134 |
) |
|
(575 |
) |
|
(497 |
) |
| Preferred share dividends |
(41 |
) |
|
(36 |
) |
|
(151 |
) |
|
(148 |
) |
|
Add back: equity-based compensation |
27 |
|
|
21 |
|
|
104 |
|
|
90 |
|
|
Distributable earnings before realizations |
802 |
|
|
574 |
|
|
3,100 |
|
|
2,302 |
|
| Realized carried interest,
net |
205 |
|
|
28 |
|
|
679 |
|
|
256 |
|
|
Disposition gains from principal investments |
225 |
|
|
479 |
|
|
2,475 |
|
|
451 |
|
|
Distributable earnings1 |
$ |
1,232 |
|
|
$ |
1,081 |
|
|
$ |
6,254 |
|
|
$ |
3,009 |
|
- Non-IFRS measure – see Basis of Presentation on page 8.
Additional Information
The Letter to Shareholders and the company’s
Supplemental Information for the three months ended June 30, 2021,
contain further information on the company’s strategy, operations
and financial results. Shareholders are encouraged to read these
documents, which are available on the company’s website.
The statements contained herein are based
primarily on information that has been extracted from our financial
statements for the quarter ended June 30, 2021, which have been
prepared using IFRS, as issued by the IASB. The amounts have not
been audited by Brookfield’s external auditor.
Brookfield’s Board of Directors have reviewed
and approved this document, including the summarized unaudited
consolidated financial statements prior to its release.
Information on our dividends can be found on our
website under Stock & Distributions/Distribution History.
Quarterly Earnings Call
Details
Investors, analysts and other interested parties
can access Brookfield Asset Management’s 2021 Second Quarter
Results as well as the Shareholders’ Letter and Supplemental
Information on Brookfield’s website under the Reports & Filings
section at www.brookfield.com.
To participate in the Conference Call today,
please dial 1-866-688-9425 toll free in North America, or for
overseas calls please dial 1-409-216-0815 (Conference ID: 5186345)
at approximately 10:50 a.m. EST. The Conference Call will also be
Webcast live at https://edge.media-server.com/mmc/go/bamQ2-2021.
For those unable to participate in the Conference Call, the
telephone replay will be archived and available until August 26,
2021. To access this rebroadcast, please call 1-855-859-2056 or
1-404-537-3406 (Conference ID: 5186345).
Brookfield Asset Management
Inc. is a leading global alternative asset manager with
over $625 billion of assets under management across real
estate, infrastructure, renewable power, private equity and credit.
Brookfield owns and operates long-life assets and businesses,
many of which form the backbone of the global economy. Utilizing
its global reach, access to large-scale capital and operational
expertise, Brookfield offers a range of alternative investment
products to investors around the world—including public and private
pension plans, endowments and foundations, sovereign wealth funds,
financial institutions, insurance companies and private wealth
investors. Brookfield Asset Management is listed on the New York
and Toronto stock exchanges under the symbol BAM and BAM.A
respectively.
Please note that Brookfield’s previous audited
annual and unaudited quarterly reports have been filed on EDGAR and
SEDAR and can also be found in the investor section of its website
at www.brookfield.com. Hard copies of the annual and quarterly
reports can be obtained free of charge upon request.
For more information, please visit our website at
www.brookfield.com or contact:
| Communications &
Media:Kerrie McHugh HayesTel: (212) 618-3469Email:
kerrie.mchugh@brookfield.com |
|
Investor
Relations: Linda Northwood Tel: (416) 359-8647 Email:
linda.northwood@brookfield.com |
Basis of Presentation
This news release and accompanying financial
statements are based on International Financial Reporting Standards
(“IFRS”), as issued by the International Accounting Standards Board
(“IASB”), unless otherwise noted.
We make reference to Funds from Operations
(“FFO”). We define FFO as net income attributable to shareholders
prior to fair value changes, depreciation and amortization, and
deferred income taxes, and includes realized disposition gains that
are not recorded in net income as determined under IFRS. FFO also
includes the company’s share of equity accounted investments’ FFO
on a fully diluted basis. FFO consists of the following
components:
- FFO from Operating Activities
represents the company’s share of revenues less direct costs and
interest expenses; excludes realized carried interest and
disposition gains, fair value changes, depreciation and
amortization and deferred income taxes; and includes our
proportionate share of FFO from operating activities recorded by
equity accounted investments on a fully diluted basis. We present
this measure as we believe it assists in describing our results and
variances within FFO.
- Realized Carried Interest
represents our contractual share of investment gains generated
within a private fund after considering our clients minimum return
requirements. Realized carried interest is determined on
third-party capital that is no longer subject to future investment
performance.
- Realized Disposition Gains are
included in FFO because we consider the purchase and sale of assets
to be a normal part of the company’s business. Realized disposition
gains include gains and losses recorded in net income and equity in
the current period, and are adjusted to include fair value changes
and revaluation surplus balances recorded in prior periods which
were not included in prior period FFO.
We use FFO to assess our operating results and
the value of Brookfield’s business and believe that many
shareholders and analysts also find this measure of value to
them.
We note that FFO, its components, and its per
share equivalent are non-IFRS measures which do not have any
standard meaning prescribed by IFRS and therefore may not be
comparable to similar measures presented by other issuers and
entities.
We make reference to Invested Capital. Invested
Capital is defined as the amount of common equity in our segments
and underlying businesses within the segments.
We make reference to Distributable Earnings,
which is referring to the sum of our Asset Management segment FFO,
distributions received from our ownership of investments, and
disposition gains from principal investments, net of Corporate
Activities FFO, equity-based compensation and preferred share
dividends. This provides insight into earnings received by the
company that are available for distribution to common shareholders
or to be reinvested into the business.
We provide additional information on key terms
and non-IFRS measures in our filings available at
www.brookfield.com.
Notice to Readers
Brookfield is not making any offer or invitation
of any kind by communication of this news release and under no
circumstance is it to be construed as a prospectus or an
advertisement.
This news release contains “forward-looking
information” within the meaning of Canadian provincial securities
laws and “forward-looking statements” within the meaning of
Canadian provincial securities laws and “forward-looking
statements” within the meaning of the U.S. Securities Act of 1933,
the U.S. Securities Exchange Act of 1934, and, “safe harbor”
provisions of the United States Private Securities Litigation
Reform Act of 1995 and in any applicable Canadian securities
regulations. Forward-looking statements include statements that are
predictive in nature, depend upon or refer to future events or
conditions, include statements which reflect management’s
expectations regarding the operations, business, financial
condition, expected financial results, performance, prospects,
opportunities, priorities, targets, goals, ongoing objectives,
strategies and outlook of Brookfield and its subsidiaries, as well
as the outlook for North American and international economies for
the current fiscal year and subsequent periods, and include words
such as “expects,” “anticipates,” “plans,” “believes,” “estimates,”
“seeks,” “intends,” “targets,” “projects,” “forecasts” or negative
versions thereof and other similar expressions, or future or
conditional verbs such as “may,” “will,” “should,” “would” and
“could.” In particular, the forward-looking statements contained in
this news release include statements referring to the future state
of the economy or the securities market and expected future
deployment of capital, dispositions and associated realized carried
interest, as well as statements regarding future product offerings,
and the results of future fundraising efforts and financial
earnings.
Where this news release refers to “target
carried interest” it is based on an assumption that existing funds
meet their target gross returns. Target gross returns are
typically ~20% for opportunistic funds; 10% to 15% for value add,
credit and core funds. Fee terms vary by investment strategy
and may change over time.
Although we believe that our anticipated future
results, performance or achievements expressed or implied by the
forward-looking statements and information are based upon
reasonable assumptions and expectations, the reader should not
place undue reliance on forward-looking statements and information
because they involve known and unknown risks, uncertainties and
other factors, many of which are beyond our control, which may
cause the actual results, performance or achievements of Brookfield
to differ materially from anticipated future results, performance
or achievement expressed or implied by such forward-looking
statements and information.
Factors that could cause actual results to
differ materially from those contemplated or implied by
forward-looking statements include, but are not limited to:
(i) investment returns that are lower than target;
(ii) the impact or unanticipated impact of general economic,
political and market factors in the countries in which we do
business including as a result of COVID-19 and the related global
economic shutdown; (iii) the behavior of financial markets,
including fluctuations in interest and foreign exchange rates;
(iv) global equity and capital markets and the availability of
equity and debt financing and refinancing within these
markets; (v) strategic actions including dispositions; the
ability to complete and effectively integrate acquisitions into
existing operations and the ability to attain expected benefits;
(vi) changes in accounting policies and methods used to report
financial condition (including uncertainties associated with
critical accounting assumptions and estimates); (vii) the
ability to appropriately manage human capital; (viii) the
effect of applying future accounting changes; (ix) business
competition; (x) operational and reputational risks;
(xi) technological change; (xii) changes in government
regulation and legislation within the countries in which we
operate; (xiii) governmental investigations;
(xiv) litigation; (xv) changes in tax laws;
(xvi) ability to collect amounts owed;
(xvii) catastrophic events, such as earthquakes, hurricanes
and epidemics/pandemics; (xviii) the possible impact of
international conflicts and other developments including terrorist
acts and cyberterrorism; (xix) the introduction, withdrawal,
success and timing of business initiatives and strategies;
(xx) the failure of effective disclosure controls and
procedures and internal controls over financial reporting and
other risks; (xxi) health, safety and environmental risks;
(xxii) the maintenance of adequate insurance coverage;
(xxiii) the existence of information barriers between certain
businesses within our asset management operations; (xxiv) risks
specific to our business segments including our real estate,
renewable power, infrastructure, private equity, and other
alternatives, including credit; and (xxv) factors detailed
from time to time in our documents filed with the securities
regulators in Canada and the United States.
We caution that the foregoing list of important
factors that may affect future results is not exhaustive and other
factors could also adversely affect its results. Readers are urged
to consider the foregoing risks, as well as other uncertainties,
factors and assumptions carefully in evaluating the forward-looking
information and are cautioned not to place undue reliance on such
forward-looking information. Except as required by law, the company
undertakes no obligation to publicly update or revise any
forward-looking statements or information, whether written or oral,
that may be as a result of new information, future events or
otherwise.
Past performance is not indicative nor a
guarantee of future results. There can be no assurance that
comparable results will be achieved in the future, that future
investments will be similar to the historic investments discussed
herein (because of economic conditions, the availability of
investment opportunities or otherwise), that targeted returns,
diversification or asset allocations will be met or that an
investment strategy or investment objectives will be
achieved.
Target returns set forth in this news release
are for illustrative and informational purposes only and have been
presented based on various assumptions made by Brookfield in
relation to the investment strategies being pursued by the funds,
any of which may prove to be incorrect. There can be no assurance
that targeted returns will be achieved. Due to various risks,
uncertainties and changes (including changes in economic,
operational, political or other circumstances) beyond Brookfield’s
control, the actual performance of the funds and the business could
differ materially from the target returns set forth herein. In
addition, industry experts may disagree with the assumptions used
in presenting the target returns. No assurance, representation or
warranty is made by any person that the target returns will be
achieved, and undue reliance should not be put on them. Prior
performance is not indicative of future results and there can be no
guarantee that the funds will achieve the target returns or be able
to avoid losses.
Certain of the information contained herein is
based on or derived from information provided by independent
third-party sources. While Brookfield believes that such
information is accurate as of the date it was produced and that the
sources from which such information has been obtained are reliable,
Brookfield makes no representation or warranty, express or implied,
with respect to the accuracy, reasonableness or completeness of any
of the information or the assumptions on which such information is
based, contained herein, including but not limited to, information
obtained from third parties.