Brookfield Announces Record Inflows of $34 billion and Strong
Third Quarter
Brookfield Asset Management Inc. (NYSE: BAM, TSX: BAM.A) today
announced financial results for the quarter ended
September 30, 2021.
Nick Goodman, CFO of Brookfield, stated “We took
in record inflows of $34 billion since last quarter. Financial
results in the quarter were also very strong, reflecting continued
growth and excellent investment performance across the
franchise. Strong inflows, supported by closes within our Real
Estate and Global Transition flagship funds, stable cash
flows from our invested capital, and monetization activity
contributed to distributable earnings of $1.2 billion, taking the
total generated over the last twelve months to $6.6 billion.
Looking forward, we remain focused on executing our growth plan of
doubling the size of the business over the next five years.”
Operating Results
UnauditedFor the
periods ended September 30(US$ millions, except per share
amounts) |
Three Months Ended |
|
Last Twelve Months Ended |
2021 |
|
|
2020 |
|
|
2021 |
|
|
2020 |
|
|
Net income1 |
$ |
2,722 |
|
|
$ |
542 |
|
|
$ |
10,742 |
|
|
$ |
530 |
|
|
Net income attributable to
common shareholders2 |
$ |
797 |
|
|
$ |
172 |
|
|
$ |
3,491 |
|
|
$ |
69 |
|
|
Net income per Brookfield share2 |
0.47 |
|
|
0.10 |
|
|
2.13 |
|
|
(0.02 |
) |
|
Funds from operations2,3 |
$ |
1,408 |
|
|
|
$ |
1,039 |
|
|
|
|
$ |
7,925 |
|
|
$ |
4,288 |
|
|
Per Brookfield share2,3 |
0.85 |
|
|
0.65 |
|
|
4.97 |
|
|
2.70 |
|
|
Distributable earnings |
$ |
1,242 |
|
|
$ |
890 |
|
|
$ |
6,613 |
|
|
$ |
3,375 |
|
|
- 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 to FFO on page 5.
Funds from operations (“FFO”) and net income in
the quarter were $1.4 billion and $2.7 billion, respectively,
both representing significant increases over the prior year
period.
Distributable earnings (“DE”) were $1.2 billion
for the quarter and $6.6 billion over the last twelve months,
almost double that of last year. The strong performance in the
quarter was a result of higher fee-related earnings given a number
of new funds, steady momentum on carried interest realizations,
increased distributions from our principal investments, and
disposition gains recognized on our principal investments. Before
realizations, DE of $873 million for the quarter, was 24%
higher than the comparative period.
Regular Dividend
Declaration
The Board declared a quarterly dividend of
US$0.13 per share, payable on December 31, 2021 to shareholders of
record as at the close of business on November 30, 2021. The Board
also declared the regular monthly and quarterly dividends on its
preferred shares.
Operating Highlights
Fundraising momentum across the business
continues to be very strong. This includes over $30 billion for our
latest round of flagship funds. Inflows since the end of last
quarter totaled $34 billion, including a strong first close
for our fourth flagship real estate fund and a founders’ close
for our Global Transition flagship fund.
We have raised over $9 billion for
our fourth flagship strategic real estate fund and with the strong
reception from investors, we expect the final fund size to be
larger than its predecessor. We also had a $7 billion
founders’ close in July for the Global Transition fund. We expect a
formal first close for this fund imminently. Our opportunistic
credit flagship fund has raised $15.8 billion of capital to date
and is already 70% invested or committed. We expect a final close
in the coming weeks.
We also raised capital across
other credit strategies, real estate secondaries strategy and our
Special Investments strategy. We launched fundraising for our sixth
private equity flagship fund towards the end of September and
expect our strong track record from the prior vintage to support a
strong fundraising cycle. Our flagship infrastructure fund is
approximately 70% invested or committed and we expect to launch the
next vintage early next year.
Fee-bearing capital now totals
$341 billion, an increase of approximately $52 billion over
the last twelve months. This contributed to a 25% increase in
fee-related earnings over the prior period.
Fee-related earnings were
$451 million in the quarter, a 21% increase over the prior
year, and $1.8 billion over the last twelve months,
representing a 25% increase over the prior period. We also
currently have approximately $35 billion of additional committed
but un-invested capital across our strategies that will earn
approximately $350 million of fees annually once deployed.
Earnings from realizations were
$369 million in the quarter and $3.3 billion over the
last twelve months, including contributions from disposition gains
from our principal investments and realized carried interest.
These earnings were comprised of
$369 million of carried interest and gains.
We generated $1.0 billion of carried
interest in the quarter (not recorded in our income statement),
through strong investment performance, taking the total accumulated
unrealized carried interest balance to $6.9 billion, an
increase of 16% in the quarter.
Annualized fee revenues and target carried
interest now stand at a run-rate of $7.2 billion annually.
Annualized fee revenues are now $3.6
billion, driven by fee contribution from new products in the market
and deployment activity. Gross target carried interest stands at
$3.6 billion.
As at September 30, 2021, we had $80 billion of
capital available to deploy into new investments.
Deployable capital of $80 billion
includes approximately $14 billion of cash, financial assets and
undrawn lines of credit in BAM and our affiliates, and $66 billion
of uncalled fund commitments available for new transactions. During
the quarter, we bolstered our liquidity through the issuance of
$850 million long dated bonds, which included a $600 million
10-year green bond and a $250 million reopening of our 30-year
bonds. We further added to our liquidity by selling liquid
financial assets, generating total proceeds of approximately $370
million during the quarter.
CONSOLIDATED BALANCE SHEETS
Unaudited (US$
millions) |
|
September 30 |
|
|
December 31 |
|
|
2021 |
|
|
2020 |
|
Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
11,343 |
|
|
$ |
9,933 |
|
Other financial assets |
|
17,646 |
|
|
17,730 |
|
Accounts receivable and
other |
|
23,746 |
|
|
24,845 |
|
Inventory |
|
11,620 |
|
|
10,360 |
|
Equity accounted
investments |
|
43,267 |
|
|
41,327 |
|
Investment properties |
|
103,493 |
|
|
96,782 |
|
Property, plant and
equipment |
|
107,761 |
|
|
100,009 |
|
Intangible assets |
|
26,056 |
|
|
24,658 |
|
Goodwill |
|
16,999 |
|
|
14,714 |
|
Deferred income tax assets |
|
3,493 |
|
|
3,338 |
|
Total Assets |
|
$ |
365,424 |
|
|
$ |
343,696 |
|
|
|
|
|
|
Liabilities and
Equity |
|
|
|
|
Corporate borrowings |
|
$ |
10,309 |
|
|
$ |
9,077 |
|
|
|
|
|
|
Accounts payable and
other |
|
53,860 |
|
|
53,041 |
|
Non-recourse borrowings in
entities that we manage |
|
156,165 |
|
|
139,324 |
|
Subsidiary equity
obligations |
|
3,790 |
|
|
3,699 |
|
Deferred income tax
liabilities |
|
17,729 |
|
|
15,913 |
|
|
|
|
|
|
Equity |
|
|
|
|
Preferred equity |
$ |
4,145 |
|
$ |
4,145 |
|
|
Non-controlling interests in net assets |
80,618 |
|
86,804 |
|
|
Common equity |
38,808 |
123,571 |
|
31,693 |
|
122,642 |
|
Total Liabilities and Equity |
|
$ |
365,424 |
|
|
$ |
343,696 |
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
UnauditedFor the
periods ended September 30(US$ millions, except per share
amounts) |
Three Months Ended |
|
Nine Months Ended |
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Revenues |
$ |
19,248 |
|
|
|
$ |
16,249 |
|
|
|
$ |
53,944 |
|
|
|
$ |
45,664 |
|
|
Direct costs |
(14,751 |
) |
|
|
(12,372 |
) |
|
|
(40,932 |
) |
|
|
(34,527 |
) |
|
Other income and gains |
1,123 |
|
|
|
34 |
|
|
|
3,078 |
|
|
|
304 |
|
|
Equity accounted income
(loss) |
662 |
|
|
|
139 |
|
|
|
1,818 |
|
|
|
(704 |
) |
|
Expenses |
|
|
|
|
|
|
|
Interest |
(1,899 |
) |
|
|
(1,757 |
) |
|
|
(5,560 |
) |
|
|
(5,324 |
) |
|
Corporate costs |
(27 |
) |
|
|
(25 |
) |
|
|
(86 |
) |
|
|
(74 |
) |
|
Fair value changes |
700 |
|
|
|
(31 |
) |
|
|
3,171 |
|
|
|
(1,598 |
) |
|
Depreciation and
amortization |
(1,617 |
) |
|
|
(1,470 |
) |
|
|
(4,698 |
) |
|
|
(4,255 |
) |
|
Income
tax |
(717 |
) |
|
|
(225 |
) |
|
|
(1,808 |
) |
|
|
(594 |
) |
|
Net income (loss) |
$ |
2,722 |
|
|
|
$ |
542 |
|
|
|
$ |
8,927 |
|
|
|
$ |
(1,108 |
) |
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to: |
|
|
|
|
|
|
|
Brookfield shareholders |
$ |
797 |
|
|
|
$ |
172 |
|
|
|
$ |
2,848 |
|
|
|
$ |
(777 |
) |
|
Non-controlling interests |
1,925 |
|
|
|
370 |
|
|
|
6,079 |
|
|
|
(331 |
) |
|
|
$ |
2,722 |
|
|
|
$ |
542 |
|
|
|
$ |
8,927 |
|
|
|
$ |
(1,108 |
) |
|
|
|
|
|
|
|
|
|
Net income (loss) per
share1 |
|
|
|
|
|
|
|
Diluted |
$ |
0.47 |
|
|
|
$ |
0.10 |
|
|
|
$ |
1.72 |
|
|
|
$ |
(0.53 |
) |
|
Basic |
0.49 |
|
|
|
0.10 |
|
|
|
1.78 |
|
|
|
(0.53 |
) |
|
- Adjusted to reflect
the three-for-two stock split effective April 1, 2020.
SUMMARIZED FINANCIAL
RESULTS
RECONCILIATION OF NET INCOME TO FUNDS
FROM OPERATIONS
UnauditedFor the
periods ended September 30(US$ millions) |
Three Months Ended |
|
Last Twelve Months Ended |
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Net income |
$ |
2,722 |
|
|
|
$ |
542 |
|
|
|
$ |
10,742 |
|
|
|
$ |
530 |
|
|
Financial statement components
not included in FFO: |
|
|
|
|
|
|
|
Equity accounted fair value changes and other non-FFO items |
307 |
|
|
|
602 |
|
|
|
1,300 |
|
|
|
2,884 |
|
|
Fair value changes |
(700 |
) |
|
|
31 |
|
|
|
(3,346 |
) |
|
|
1,594 |
|
|
Depreciation and amortization |
1,617 |
|
|
|
1,470 |
|
|
|
6,234 |
|
|
|
5,564 |
|
|
Deferred income taxes |
428 |
|
|
|
21 |
|
|
|
906 |
|
|
|
26 |
|
|
Realized disposition gains in
fair value changes or prior periods |
255 |
|
|
|
161 |
|
|
|
3,298 |
|
|
|
915 |
|
|
Non-controlling interests |
(3,221 |
) |
|
|
(1,788 |
) |
|
|
(11,209 |
) |
|
|
(7,225 |
) |
|
Funds from operations1,2 |
$ |
1,408 |
|
|
|
$ |
1,039 |
|
|
|
$ |
7,925 |
|
|
|
$ |
4,288 |
|
|
SEGMENT FUNDS FROM
OPERATIONS
UnauditedFor the
periods ended September 30(US$ millions, except per share
amounts) |
Three Months Ended |
|
Last Twelve Months Ended |
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Asset management |
$ |
597 |
|
|
|
$ |
399 |
|
|
|
$ |
2,563 |
|
|
|
$ |
1,663 |
|
|
Real estate |
147 |
|
|
|
90 |
|
|
|
1,064 |
|
|
|
746 |
|
|
Renewable power and
Transition |
58 |
|
|
|
64 |
|
|
|
1,317 |
|
|
|
762 |
|
|
Infrastructure |
248 |
|
|
|
244 |
|
|
|
799 |
|
|
|
570 |
|
|
Private equity |
433 |
|
|
|
249 |
|
|
|
2,146 |
|
|
|
740 |
|
|
Residential |
76 |
|
|
|
37 |
|
|
|
190 |
|
|
|
104 |
|
|
Corporate |
(151 |
) |
|
|
(44 |
) |
|
|
(154 |
) |
|
|
(297 |
) |
|
Funds from operations1,2 |
$ |
1,408 |
|
|
|
$ |
1,039 |
|
|
|
$ |
7,925 |
|
|
|
$ |
4,288 |
|
|
|
|
|
|
|
|
|
|
Per
share3,4 |
$ |
0.85 |
|
|
|
$ |
0.65 |
|
|
|
$ |
4.97 |
|
|
|
$ |
2.70 |
|
|
- 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 September 30(US$ millions, except per share
amounts) |
Three Months Ended |
|
Last Twelve Months Ended |
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Net income |
$ |
2,722 |
|
|
|
$ |
542 |
|
|
|
$ |
10,742 |
|
|
|
$ |
530 |
|
|
Non-controlling interests |
(1,925 |
) |
|
|
(370 |
) |
|
|
(7,251 |
) |
|
|
(461 |
) |
|
Net income (loss) attributable to shareholders |
797 |
|
|
|
172 |
|
|
|
3,491 |
|
|
|
69 |
|
|
Preferred share dividends |
(36 |
) |
|
|
(34 |
) |
|
|
(147 |
) |
|
|
(144 |
) |
|
Dilutive
effect of conversion of subsidiary preferred shares |
(1 |
) |
|
|
9 |
|
|
|
(10 |
) |
|
|
38 |
|
|
Net income (loss) available to common shareholders |
760 |
|
|
|
147 |
|
|
|
3,334 |
|
|
|
(37 |
) |
|
Dilutive impact of exchangeable shares of affiliate |
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
Net income
(loss) available to common shareholders including dilutive impact
of exchangeable shares |
$ |
761 |
|
|
|
$ |
147 |
|
|
|
$ |
3,335 |
|
|
|
$ |
(37 |
) |
|
|
|
|
|
|
|
|
|
Weighted average shares1 |
1,552.8 |
|
|
|
1,511.7 |
|
|
|
1,523.2 |
|
|
|
1,505.7 |
|
|
Dilutive
effect of conversion of options and escrowed shares using treasury
stock method1,2 and exchangeable shares of affiliate |
59.6 |
|
|
|
24.7 |
|
|
|
41.7 |
|
|
|
— |
|
|
Shares and share equivalents1 |
1,612.4 |
|
|
|
1,536.4 |
|
|
|
1,564.9 |
|
|
|
1,505.7 |
|
|
|
|
|
|
|
|
|
|
Diluted
earnings per share1,3 |
$ |
0.47 |
|
|
|
$ |
0.10 |
|
|
|
$ |
2.13 |
|
|
|
$ |
(0.02 |
) |
|
- 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 September 30(US$ millions) |
Three Months Ended |
|
Last Twelve Months Ended |
2021 |
|
|
|
2020 |
|
|
|
2021 |
|
|
|
2020 |
|
|
Fee-related earnings |
$ |
451 |
|
|
|
$ |
372 |
|
|
|
$ |
1,758 |
|
|
|
$ |
1,411 |
|
|
|
|
|
|
|
|
|
|
Perpetual affiliates |
509 |
|
|
|
360 |
|
|
|
1,678 |
|
|
|
1,467 |
|
|
Corporate cash and financial assets |
(29 |
) |
|
|
80 |
|
|
|
227 |
|
|
|
236 |
|
|
Other principal investments |
92 |
|
|
|
39 |
|
|
|
231 |
|
|
|
(40 |
) |
|
Distributions from investments |
572 |
|
|
|
479 |
|
|
|
2,136 |
|
|
|
1,663 |
|
|
|
|
|
|
|
|
|
|
Corporate activities |
(144 |
) |
|
|
(135 |
) |
|
|
(584 |
) |
|
|
(536 |
) |
|
Preferred share dividends |
(39 |
) |
|
|
(34 |
) |
|
|
(156 |
) |
|
|
(144 |
) |
|
Add
back: equity-based compensation |
33 |
|
|
|
23 |
|
|
|
114 |
|
|
|
93 |
|
|
Distributable earnings before realizations |
873 |
|
|
|
705 |
|
|
|
3,268 |
|
|
|
2,487 |
|
|
Realized carried interest,
net |
146 |
|
|
|
27 |
|
|
|
805 |
|
|
|
252 |
|
|
Disposition gains from principal investments |
223 |
|
|
|
158 |
|
|
|
2,540 |
|
|
|
636 |
|
|
Distributable earnings1 |
$ |
1,242 |
|
|
|
$ |
890 |
|
|
|
$ |
6,613 |
|
|
|
$ |
3,375 |
|
|
- 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 September 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 September 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 Third 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 at
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will be archived and available until November 25, 2021. To
access this rebroadcast, please call 1-855-859-2056 or
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Brookfield Asset Management
Inc. is a leading global alternative asset manager with
approximately $650 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) 359-8647Email:
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.