RA - RA: Reiterate Avoid Recommendation

2024-04-06 01:30:47 ET

Summary

• The Brookfield Real Assets Income Fund invests in corporate credit and real assets to generate high income.
• Despite a strong risk rally, the RA fund has barely kept pace with its distribution yield.
• On a normalized basis, I do not believe the RA fund's distribution is sustainable given it is paying ~10% of NAV, while long-term performance has been 4-5%.

Back in August, I wrote a cautious article on the Brookfield Real Assets Income Fund ( RA ), warning that despite a steep 41% cut to the fund's distribution, the RA fund's new distribution rate may still be unsustainable, as the fund was implying a ~10% of NAV distribution yield compared to 3 and 5 year historical returns of only 4.3% and 2.4% respectively....

For further details see: