Center Coast Brookfield MLP & Energy Infrastructure Fund

Fund Risks

Investing in the Fund involves risk, including possible loss of principal invested. There can be no assurance that the Fund will achieve its investment objective. 

Holders of master limited partnership (MLP) units have the rights typically afforded to limited partners in a limited partnership, such as more limited control and limited rights to vote on matters affecting the partnership. MLPs are also subject to the risk that regulatory or legislative changes could limit or eliminate the tax benefits enjoyed by MLPs, which could have a negative impact on the after-tax income available for distribution by the MLPs. In addition, conflicts of interest may exist between common unit holders, subordinated unit holders and the general partner of an MLP. 

Private companies are not subject to SEC reporting requirements, are not required to maintain their accounting records in accordance with generally accepted accounting principles, and are not required to maintain effective internal controls over financial reporting. Private company investments typically are illiquid. Due to the inherent uncertainty and subjectivity of determining the fair value of investments that do not have a readily available market value, the fair value of the Fund’s private investments may differ significantly from the values that would have been used had a readily available market value existed for such investments and it may differ materially from the amounts the Fund may realize on any dispositions of such investments. 

The Fund may co-invest in private investment opportunities. The Fund may have limited, if any, governance, voting or consent rights, and the Fund’s ability to realize a profit on such investments will be particularly reliant on the expertise of the lead investor in the transaction and potentially impacted by global economic, market, and energy and energy infrastructure related events. 
Because a significant portion of the Fund’s managed assets consist of holdings that are illiquid, to the extent the Fund needs to dispose of portfolio holdings, the Fund may be required to dispose of more liquid holdings at times and/or on terms that the Fund would otherwise consider undesirable. 

The Fund is not a complete investment program, and you may lose money investing in the Fund. Because of the Fund’s concentration in MLP investments, the Fund is not eligible to be treated as a “regulated investment company” under the Internal Revenue Code of 1986, as amended. Instead, the Fund will be treated as a regular corporation for U.S. federal income tax purposes and will be subject to corporate income tax to the extent the Fund recognizes taxable income. 

The Fund is a non-diversified investment company under the Investment Company Act of 1940, as amended, and will not elect to be treated as a regulated investment company under the Internal Revenue Code of 1986, as amended. As a result, an investment in the Fund may present greater risk to an investor than an investment in a diversified portfolio because changes in the financial condition or market assessment of a single issuer may cause greater fluctuations in the value of the Fund’s shares. 

In the event that the total distributions on the Fund’s common shares exceed the Fund’s current and accumulated earnings and profits allocable to such shares, the excess distributions will generally be treated as a tax-free return of capital. Shareholders should not assume that the source of a distribution from the Fund is net profit or income. Distributions sourced and paid from capital should not be considered the current yield or the total return from an investment in the Fund. The amount treated as a tax-free return of capital will reduce a shareholder’s adjusted tax basis in the common shares, thereby increasing the shareholder’s potential taxable gain or reducing the potential loss on the sale of the shares. 

The Fund currently seeks to enhance the level of its current distributions by utilizing financial leverage. The costs associated with the issuance and use of financial leverage will be borne by the holders of the common shares. 

Closed-end funds are offered through a one-time public offering, and once issued, shares of closed-end funds typically are not redeemable to the Fund. Investors looking to sell their shares must do so on the open market through a stock exchange. At the time of sale, your shares may have a market price that is above or below NAV. Shares of closed-end funds frequently trade at a market price that is below their NAV.