Stock Analysis & Valuation Brookfield Real Assets Income Fund Inc. (RA)

• Previous Close: $13.02
• Sector Valuation Confidence Level: High

Valuation method	Value, $	Upside, %
Artificial intelligence (AI)	35.26	171
Intrinsic value (DCF)	78.12	500
Graham-Dodd Method		n/a
Graham Formula	6.80	-48

Strategic Investment Analysis

Company Overview

Brookfield Real Assets Income Fund Inc. (NYSE: RA) is a closed-end fixed income mutual fund managed by Brookfield Investment Management Inc. and co-managed by Schroder Investment Management North America Inc. Launched in 2016, the fund focuses on generating income through investments in real estate securities, infrastructure securities, and natural resources securities within the U.S. fixed income markets. As part of the Brookfield Asset Management ecosystem, RA leverages its parent company’s expertise in real assets to provide investors with diversified exposure to income-generating opportunities. The fund is particularly relevant in today’s market environment, where investors seek stable yields amid economic uncertainty. With a market cap of approximately $708 million, RA offers a compelling option for income-focused portfolios, supported by a solid dividend yield. Its strategic positioning in real assets—a sector known for inflation resilience—enhances its appeal in volatile markets.

Investment Summary

Brookfield Real Assets Income Fund Inc. (RA) presents an attractive investment opportunity for income-seeking investors, given its diversified exposure to real estate, infrastructure, and natural resources securities. The fund’s diluted EPS of $1.18 and a dividend yield of approximately 6.7% (based on a $1.416 annual dividend per share) underscore its income-generating capability. However, risks include its negative operating cash flow (-$3.57M), reliance on market conditions for asset performance, and potential interest rate sensitivity. The fund’s low beta (0.69) suggests lower volatility relative to the broader market, which may appeal to conservative investors. RA’s alignment with Brookfield’s broader real asset expertise adds credibility, but its closed-end structure could lead to trading at premiums or discounts to NAV.

Competitive Analysis

Brookfield Real Assets Income Fund Inc. (RA) differentiates itself through its specialized focus on real assets—real estate, infrastructure, and natural resources—which provides inflation-hedged income streams. Its affiliation with Brookfield Asset Management grants access to deep sector expertise and proprietary deal flow, enhancing its ability to source high-quality income-generating assets. Compared to generic fixed-income funds, RA’s niche strategy offers diversification benefits, particularly in inflationary environments. However, its closed-end structure may limit liquidity compared to open-end alternatives, and its performance is tied to the cyclicality of real asset markets. The fund’s co-management with Schroders adds a layer of credit and fixed-income specialization, but its relatively small size ($708M market cap) may constrain scalability. Competitors with broader mandates or lower fees could pressure RA’s market share, though its Brookfield affiliation provides a defensible moat in real asset investing.

Major Competitors

• PIMCO Dynamic Income Fund (PDI): PDI is a larger, more diversified fixed-income fund managed by PIMCO, with a focus on global credit opportunities. Its scale and PIMCO’s credit expertise make it a formidable competitor, though RA’s real-asset focus provides differentiation. PDI’s higher liquidity and brand recognition are strengths, but its broader mandate lacks RA’s inflation-hedged niche.
• PIMCO Dynamic Credit and Mortgage Income Fund (PCI): PCI specializes in mortgage-backed and credit securities, offering high yield but with greater interest rate risk. RA’s real asset focus may appeal to investors seeking lower correlation to traditional fixed income. PCI’s PIMCO backing ensures strong management, but its narrower credit focus contrasts with RA’s diversified real-asset approach.
• Cohen & Steers Infrastructure Fund (UTF): UTF is a direct competitor in infrastructure and real asset investing, but with a heavier emphasis on utilities and transport. RA’s inclusion of natural resources and real estate broadens its diversification. UTF’s longer track record is a strength, but RA’s Brookfield affiliation may offer superior asset access.
• Cohen & Steers Quality Income Realty Fund (RQI): RQI focuses exclusively on real estate securities, making it less diversified than RA. RA’s inclusion of infrastructure and natural resources may provide better risk-adjusted returns. RQI’s Cohen & Steers brand is strong in REITs, but RA’s multi-sector approach could attract a wider investor base.