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