brookfield-tr_nq.htm
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 
FORM N-Q
 
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY


Investment Company Act file number 811-05820


Brookfield Total Return Fund Inc.
(Exact name of registrant as specified in charter)


Brookfield Place, 250 Vesey Street, 15th Floor, New York, NY 10281-1023
(Address of principal executive offices) (Zip code)


Brian F. Hurley, Brookfield Place, 250 Vesey Street, 15th Floor, New York, NY 10281-1023
 (Name and address of agent for service)


855-777-8001
Registrant's telephone number, including area code


Date of fiscal year end: September 30, 2015


Date of reporting period:  December 31, 2014
 
 
 
 
 
 
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (Sections 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
 
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. Section 3507.
 
 
Item 1. Schedule of Investments.


BROOKFIELD TOTAL RETURN FUND INC.
                    
Schedule of Investments (Unaudited)
                    
December 31, 2014
                    
           
Principal
        
   
Interest
      
Amount
        
   
Rate
  
Maturity
     (000s )  
Value
  
U.S. GOVERNMENT & AGENCY OBLIGATIONS - 5.1%
                      
U.S. Government Agency Collateralized Mortgage Obligations - 0.1%
                      
Federal National Mortgage Association REMICS
                      
Series 1997-79, Class PL 1
     6.85 %
12/18/27
   $ 224     $ 256,722  
Total U.S. Government Agency Collateralized Mortgage Obligations
                       256,722  
U.S. Government Agency Pass-Through Certificates - 5.0%
                          
Federal Home Loan Mortgage Corporation
                          
Federal Home Loan Mortgage Corporation
     4.00  
TBA
     2,000       2,131,875  
Pool Q03049
     4.50  
08/01/41
     2,414       2,642,753  
Pool C69047 1
     7.00  
06/01/32
     351       401,370  
Pool C53494 1
     7.50  
06/01/31
     44       44,797  
Pool C56878 1
     8.00  
08/01/31
     49       50,141  
Pool C58516 1
     8.00  
09/01/31
     40       40,427  
Pool C59641 1
     8.00  
10/01/31
     212       247,995  
Pool C55166 1
     8.50  
07/01/31
     102       110,420  
Pool C55167 1
     8.50  
07/01/31
     65       67,381  
Pool C55169 1
     8.50  
07/01/31
     61       63,803  
Pool G01466 1
     9.50  
12/01/22
     333       366,018  
Pool 555538 1
     10.00  
03/01/21
     105       112,242  
Pool 555559 1
     10.00  
03/01/21
     72       77,313  
Federal National Mortgage Association
                          
Federal National Mortgage Association
     4.00  
TBA
     2,000       2,134,508  
Pool 753914 1
     5.50  
12/01/33
     1,008       1,134,677  
Pool 761836 1
     6.00  
06/01/33
     562       640,251  
Pool 948362 1
     6.50  
08/01/37
     203       231,720  
Pool 555933
     7.00  
06/01/32
     1,644       1,941,149  
Pool 645912 1
     7.00  
06/01/32
     340       387,108  
Pool 645913 1
     7.00  
06/01/32
     487       547,547  
Pool 650131 1
     7.00  
07/01/32
     453       520,263  
Pool 789284 1
     7.50  
05/01/17
     19       19,116  
Pool 827853 1
     7.50  
10/01/29
     33       33,807  
Pool 545990
     7.50  
04/01/31
     607       718,133  
Pool 255053 1
     7.50  
12/01/33
     121       137,160  
Pool 735576 1
     7.50  
11/01/34
     733       862,306  
Pool 896391 1
     7.50  
06/01/36
     330       385,166  
Pool 735800 1
     8.00  
01/01/35
     460       561,093  
Pool 636449 1
     8.50  
04/01/32
     400       483,158  
Pool 458132 1
     8.96  
03/15/31
     687       800,315  
Pool 852865
     9.00  
07/01/20
     420       464,044  
Pool 545436 1
     9.00  
10/01/31
     307       382,779  
Total U.S. Government Agency Pass-Through Certificates
                       18,740,835  
TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
                          
(Cost $17,696,377)
                       18,997,557  
ASSET-BACKED SECURITIES - 4.7%
                          
Housing Related Asset-Backed Securities - 4.7%
                          
ACE Securities Corporation Manufactured Housing Trust
                          
Series 2003-MH1, Class A4 2
     6.50  
08/15/30
     1,590       1,760,369  
Bayview Opportunity Master Fund IIA Trust
                          
Series 2012-4NR2, Class A 2,3
     3.95  
01/28/34
     1,553       1,560,910  
Conseco Finance Securitizations Corp.
                          
Series 2001-4, Class A4
     7.36  
08/01/32
     259       284,491  
Conseco Financial Corp.
                          
Series 1998-3, Class A6
     6.76  
03/01/30
     1,040       1,114,864  
Series 1997-7, Class A7
     6.96  
07/15/28
     854       884,544  
Series 1997-2, Class A6
     7.24  
06/15/28
     98       101,212  
Series 1997-6, Class A9
     7.55  
01/15/29
     806       841,431  
Lehman ABS Manufactured Housing Contract Trust
                          
Series 2001-B, Class A5
     5.87  
04/15/40
     193       207,979  
 
 
 
 
 
BROOKFIELD TOTAL RETURN FUND INC.
                          
Schedule of Investments (Unaudited) (continued)
                          
December 31, 2014
                          
             
Principal
          
   
Interest
      
Amount
          
   
Rate
  
Maturity
     (000s )  
Value
  
ASSET-BACKED SECURITIES (continued)
                          
Series 2001-B, Class A6
     6.47 %
04/15/40
   $ 167     $ 182,058  
Mid-State Capital Corp.
                          
Series 2004-1, Class M1
     6.50  
08/15/37
     4,378       4,693,102  
Series 2004-1, Class M2 4
                          
(Acquired 07/01/04, Cost $3,811,812, 1.1%)
     8.11  
08/15/37
     3,608       4,156,868  
Origen Manufactured Housing Contract Trust
                          
Series 2005-B, Class A4
     5.91  
01/15/37
     1,668       1,758,279  
Total Housing Related Asset-Backed Securities
                       17,546,107  
TOTAL ASSET-BACKED SECURITIES
                          
(Cost $17,115,256)
                       17,546,107  
RESIDENTIAL MORTGAGE RELATED HOLDINGS - 53.7%
                          
Non-Agency Mortgage-Backed Securities - 53.7%
                          
Alternative Loan Trust
                          
Series 2007-OA3, Class 1A1 3,5
     0.31  
04/25/47
     7,156       6,115,826  
Series 2006-OA10, Class 3A1 3,5
     0.36  
08/25/46
     7,445       5,732,287  
Series 2005-51, Class 4A1 3,5
     0.49  
11/20/35
     5,557       4,475,031  
Series 2007-2CB, Class 1A15
     5.75  
03/25/37
     984       874,593  
Series 2007-12T1, Class A22
     5.75  
06/25/37
     4,124       3,452,713  
Series 2006-29T1, Class 2A5
     6.00  
10/25/36
     3,598       3,215,134  
Series 2006-41CB, Class 2A17
     6.00  
01/25/37
     1,593       1,374,341  
Series 2006-29T1, Class 3A3 5,6
     76.68  
10/25/36
     1,029       3,417,291  
Asset-Backed Securities Corporation Home Equity Loan Trust
                          
Series 2007-HE1, Class A4 3,5
     0.31  
12/25/36
     2,346       1,883,951  
Banc of America Funding Trust
                          
Series 2003-3, Class B4 4
                          
(Acquired 01/28/04, Cost $180,957, 0.0%)
     5.48  
10/25/33
     201       68,519  
Series 2003-3, Class B5 4
                          
(Acquired 01/28/04, Cost $107,108, 0.0%)
     5.48  
10/25/33
     142       32,675  
Series 2006-G, Class 3A2 5
     5.75  
07/20/36
     6,073       6,105,296  
BCAP LLC Trust
                          
Series 2012-RR4, Class 5A6 2,5
     2.36  
05/26/36
     4,586       3,256,014  
BNC Mortgage Loan Trust
                          
Series 2007-2, Class A5 3,5
     0.48  
05/25/37
     6,232       4,505,660  
Carefree Portfolio Trust
                          
Series 2014-CARE, Class F 2,3,5
     2.75  
11/15/29
     4,980       4,440,666  
Citicorp Mortgage Securities Trust
                          
Series 2006-3, Class 1A4
     6.00  
06/25/36
     2,065       2,141,690  
Citigroup Mortgage Loan Trust
                          
Series 2009-11, Class 8A2 2,5
     2.16  
04/25/45
     3,244       2,727,672  
Countrywide Home Loan Mortgage Pass-Through Trust
                          
Series 2003-J13, Class B3 4
                          
(Acquired 09/13/07, Cost $63,785, 0.0%)
     5.24  
01/25/34
     282       36,226  
Series 2007-5, Class A29
     5.50  
05/25/37
     784       748,327  
Series 2006-21, Class A11
     5.75  
02/25/37
     2,558       2,409,737  
Series 2004-21, Class A10
     6.00  
11/25/34
     342       361,156  
Series 2007-18, Class 1A1
     6.00  
11/25/37
     827       750,486  
Series 2006-14, Class A4
     6.25  
09/25/36
     5,149       4,782,142  
CSMC
                          
Series 2010-19R, Class 5A4 2
     3.25  
08/27/36
     7,280       6,962,461  
DSLA Mortgage Loan Trust
                          
Series 2007-AR1, Class 2A1A 3,5
     0.30  
04/19/47
     4,898       4,018,492  
First Republic Bank Mortgage Pass-Through Certificates Trust
                          
Series 2000-FRB1, Class B3 4,5
                          
(Acquired 08/30/01, Cost $79,166, 0.0%)
     0.67  
06/25/30
     82       52,797  
GMAC Mortgage Loan Trust
                          
Series 2004-J5, Class M1
     5.46  
01/25/35
     1,517       1,200,654  

 
 
 

BROOKFIELD TOTAL RETURN FUND INC.
                    
Schedule of Investments (Unaudited) (continued)
                    
December 31, 2014
                    
           
Principal
        
   
Interest
      
Amount
        
   
Rate
  
Maturity
     (000s )  
Value
  
RESIDENTIAL MORTGAGE RELATED HOLDINGS (continued)
                      
GSAMP Trust
                      
Series 2006-HE5, Class A2C 3,5
     0.32 %
08/25/36
   $ 4,731     $ 3,986,471  
Series 2006-HE8, Class A2C 3,5
     0.34  
01/25/37
     6,277       4,996,448  
GSR Mortgage Loan Trust
                          
Series 2005-6F, Class 1A6
     5.25  
07/25/35
     905       934,231  
IndyMac INDX Mortgage Loan Trust
                          
Series 2006-FLX1, Class A1 3,5
     0.38  
11/25/36
     6,015       5,251,781  
IXIS Real Estate Capital Trust
                          
Series 2006-HE3, Class A2 3,5
     0.27  
01/25/37
     1,012       523,698  
Series 2006-HE2, Class A3 3,5
     0.33  
08/25/36
     9,846       4,585,019  
Series 2006-HE3, Class A4 3,5
     0.40  
01/25/37
     781       420,908  
JP Morgan Mortgage Trust
                          
Series 2003-A1, Class B4 4,5
                          
(Acquired 10/29/04, Cost $192,759, 0.0%)
     2.12  
10/25/33
     225       86,498  
Series 2003-A2, Class B4 1,4,5
                          
(Acquired 10/29/04, Cost $132,445, 0.0%)
     2.33  
11/25/33
     154       40,383  
Master Asset Backed Securities Trust
                          
Series 2006-NC3, Class A3 3,5
     0.27  
10/25/36
     2,685       1,673,273  
Series 2006-NC2, Class A4 3,5
     0.32  
08/25/36
     1,728       932,798  
Series 2006-NC3, Class A4 3,5
     0.33  
10/25/36
     2,868       1,804,764  
Series 2006-HE5, Class A3 3,5
     0.33  
11/25/36
     5,565       3,757,174  
Series 2006-NC3, Class A5 3,5
     0.38  
10/25/36
     4,421       2,805,182  
Series 2006-HE5, Class A4 3,5
     0.39  
11/25/36
     1,878       1,279,276  
Series 2006-NC2, Class A5 3,5
     0.41  
08/25/36
     642       352,370  
Series 2005-NC2, Class A4 3,5
     0.52  
11/25/35
     7,265       4,765,718  
Mid-State Capital Corp.
                          
Series 2004-1, Class B
     8.90  
08/15/37
     364       405,432  
Mid-State Trust IV
                          
Series 4, Class A
     8.33  
04/01/30
     5,748       6,082,412  
Mid-State Trust X
                          
Series 10, Class B 4
                          
(Acquired 01/05/04, Cost $1,640,788, 0.5%)
     7.54  
02/15/36
     1,723       1,828,884  
Nationstar Home Equity Loan Trust
                          
Series 2006-B, Class AV4 3,5
     0.45  
09/25/36
     7,795       7,060,391  
Nomura Resecuritization Trust
                          
Series 2014-1R, Class 2A11 2,5
     0.29  
02/26/37
     15,119       7,817,490  
Series 2013-1R, Class 3A12 2,3,5
     0.31  
10/26/36
     14,656       11,622,311  
Series 2014-6R, Class 5A7 2,5
     2.53  
04/26/37
     4,605       3,013,952  
Oakwood Mortgage Investors, Inc.
                          
Series 2001-E, Class A4
     6.81  
12/15/31
     8,836       8,847,773  
Series 2001-D, Class A4
     6.93  
09/15/31
     1,175       1,077,754  
RAAC
                          
Series 2005-SP1, Class M3 4
                          
(Acquired 08/02/07, Cost $26,082, 0.0%)
     5.47  
09/25/34
     113       1  
RALI Trust
                          
Series 2006-QO1, Class 2A1 3,5
     0.44  
02/25/46
     4,253       2,490,552  
Series 2006-QO7, Class 2A1 5
     0.96  
09/25/46
     12,039       8,425,219  
Series 2007-QS6, Class A2 5,6
     54.17  
04/25/37
     319       723,413  
Series 2006-QS14, Class A30 5,6
     79.05  
11/25/36
     201       586,830  
Resix Finance Limited Credit-Linked Notes
                          
Series 2003-CB1, Class B8 2,4,5
                          
(Acquired 12/22/04, Cost $997,353, 0.1%)
     6.91  
06/01/35
     1,124       393,593  
Series 2004-B, Class B9 2,4,5
                          
(Acquired 05/21/04, Cost $300,394, 0.0%)
     8.41  
02/10/36
     300       175,000  
Series 2004-A, Class B10 2,4,5
                          
(Acquired 03/09/04, Cost $144,701, 0.0%)
     11.66  
02/10/36
     145       2,532  
 
 
 
 
 
 
BROOKFIELD TOTAL RETURN FUND INC.
                    
Schedule of Investments (Unaudited) (continued)
                    
December 31, 2014
                    
           
Principal
        
   
Interest
      
Amount
        
   
Rate
  
Maturity
     (000s )  
Value
  
RESIDENTIAL MORTGAGE RELATED HOLDINGS (continued)
                      
RFMSI Trust
                      
Series 2004-S1, Class B1
     5.25 %
02/25/34
   $ 179     $ 89,819  
Series 2004-S1, Class B2
     5.25  
02/25/34
     90       5,232  
Series 2003-S7, Class B2
     5.50  
05/25/33
     115       1  
Saxon Asset Securities Trust
                          
Series 2006-2, Class A3C 3,5
     0.32  
09/25/36
     2,422       2,255,734  
Securitized Asset Backed Receivables LLC Trust
                          
Series 2007-NC1, Class A2B 3,5
     0.32  
12/25/36
     6,293       3,628,152  
Series 2007-BR2, Class A2 3,5
     0.40  
02/25/37
     4,071       2,423,175  
Thornburg Mortgage Securities Trust
                          
Series 2007-1, Class A2B 5
     1.47  
03/25/37
     5,146       4,662,059  
Washington Mutual Mortgage Pass-Through Certificates Trust
                          
Series 2007-HY5, Class 3A1 5
     4.59  
05/25/37
     1,637       1,558,755  
Series 2003-S1, Class B4 2,4
                          
(Acquired 10/25/07, Cost $16,475, 0.0%)
     5.50  
04/25/33
     111       1  
Series 2007-5, Class A11 5,6
     38.46  
06/25/37
     109       212,795  
Series 2005-6, Class 2A3 5,6
     49.29  
08/25/35
     163       288,761  
Wells Fargo Mortgage Backed Securities Trust
                          
Series 2004-6, Class B4 4
                          
(Acquired 04/13/05, Cost $507,825, 0.0%)
     5.50  
06/25/34
     609       57,238  
Series 2006-9, Class 1A19
     6.00  
08/25/36
     7,146       7,116,548  
Series 2007-8, Class 1A22
     6.00  
07/25/37
     489       483,428  
Series 2007-8, Class 2A2
     6.00  
07/25/37
     1,030       1,018,005  
Series 2007-13, Class A7
     6.00  
09/25/37
     379       380,409  
Series 2005-18, Class 2A10 5,6
     22.11  
01/25/36
     217       272,776  
Total Non-Agency Mortgage-Backed Securities
                       198,344,256  
TOTAL RESIDENTIAL MORTGAGE RELATED HOLDINGS
                          
(Cost $188,536,648)
                       198,344,256  
COMMERCIAL MORTGAGE RELATED HOLDINGS - 56.1%
                          
Commercial Mortgage-Backed Securities - 54.2%
                          
A10 Term Asset Financing LLC
                          
Series 2014-1, Class B 2
     3.87  
04/15/33
     2,112       2,116,585  
Series 2013-2, Class B 2
     4.38  
11/15/27
     2,927       2,977,632  
Series 2014-1, Class C 2
     4.57  
04/15/33
     1,171       1,177,664  
Series 2014-1, Class D 2
     5.08  
04/15/33
     328       330,041  
Series 2013-2, Class C 2
     5.12  
11/15/27
     2,000       2,051,910  
Series 2013-2, Class D 2
     6.23  
11/15/27
     501       524,805  
ACRE Commercial Mortgage Trust
                          
Series 2013-FL1, Class D 1,2,5
     4.56  
06/15/30
     5,000       5,035,065  
Banc of America Commercial Mortgage Trust
                          
Series 2006-6, Class AJ
     5.42  
10/10/45
     13,150       13,563,699  
Series 2007-3, Class AJ 1
     5.55  
06/10/49
     14,670       15,164,555  
Series 2007-2, Class A4 1
     5.61  
04/10/49
     4,850       5,189,374  
Bear Stearns Commercial Mortgage Securities Trust
                          
Series 2006-PW11, Class H 2,4
                          
(Acquired 03/08/06, Cost $1,698,878, 0.0%)
     5.43  
03/11/39
     1,726       29,336  
Series 2007-PW16, Class B 2,4
                          
(Acquired 09/22/10 - 03/03/11, Cost $4,381,124, 1.6%)
     5.71  
06/11/40
     6,000       5,891,550  
Commercial Mortgage Lease-Backed Certificates
                          
Series 2001-CMLB, Class A1 2,7
     6.75  
06/20/31
     118       118,572  
Commercial Mortgage Trust
                          
Series 2007-C9, Class AJFL 1,2,5
     0.85  
12/10/49
     9,277       8,875,798  
Series 2006-GG7, Class AJ 1
     5.82  
07/10/38
     3,830       3,930,162  
Series 2007-GG11, Class AJ 1
     6.05  
12/10/49
     10,330       10,807,876  
Series 2007-GG11, Class B
     6.15  
12/10/49
     3,568       3,285,357  
Series 2007-GG11, Class C
     6.15  
12/10/49
     8,400       6,709,920  
 
 
 
 
 
BROOKFIELD TOTAL RETURN FUND INC.
                    
Schedule of Investments (Unaudited) (continued)
                    
December 31, 2014
                    
           
Principal
        
   
Interest
      
Amount
        
   
Rate
  
Maturity
     (000s )  
Value
  
COMMERCIAL MORTGAGE RELATED HOLDINGS (continued)
                      
Credit Suisse Commercial Mortgage Trust
                      
Series 2007-C2, Class AMFL 1,5
     0.39 %
01/15/49
   $ 7,000     $ 6,675,956  
Series 2006-C1, Class K 1,2,4
                          
(Acquired 03/07/06, Cost $6,915,239, 0.2%)
     5.47  
02/15/39
     7,073       799,977  
Series 2007-C2, Class A3 1
     5.54  
01/15/49
     6,024       6,453,108  
Credit Suisse First Boston Mortgage Securities Corp.
                          
Series 2005-C2, Class AMFX
     4.88  
04/15/37
     10,800       10,827,356  
GMAC Commercial Mortgage Securities, Inc. Trust
                          
Series 2004-C3, Class B 4
                          
(Acquired 12/07/10, Cost $1,154,269, 0.3%)
     4.97  
12/10/41
     1,200       1,226,063  
JP Morgan Chase Commercial Mortgage Securities Trust
                          
Series 2003-LN1, Class G 2,4
                          
(Acquired 09/24/03, Cost $6,757, 0.0%)
     5.38  
10/15/37
     7       6,757  
Series 2007-CB20, Class AM 1
     5.88  
02/12/51
     1,180       1,293,186  
Series 2009-IWST, Class D 2,4
                          
(Acquired 06/28/07, Cost $7,694,056, 2.3%)
     7.45  
12/05/27
     7,000       8,407,210  
LB-UBS Commercial Mortgage Trust
                          
Series 2007-C1, Class AJ
     5.48  
02/15/40
     7,460       7,754,819  
Series 2007-C1, Class C 4
                          
(Acquired 02/10/11, Cost $2,990,654, 0.9%)
     5.53  
02/15/40
     3,260       3,250,748  
Series 2007-C1, Class D
     5.56  
02/15/40
     3,600       3,513,892  
Series 2007-C7, Class AJ
     6.25  
09/15/45
     10,000       10,523,490  
LNR CDO V Ltd.
                          
Series 2007-1A, Class F 2,4,5
                          
(Acquired 02/27/07, Cost $3,750,000, 0.0%)
     1.62  
12/26/49
     3,750       –  
Morgan Stanley Capital I Trust
                          
Series 2006-IQ11, Class J 1,2,4
                          
(Acquired 05/24/06, Cost $5,170, 0.0%)
     5.53  
10/15/42
     174       3,486  
Series 2007-HQ13, Class A3 1
     5.57  
12/15/44
     6,108       6,558,422  
Series 2007-T25, Class AJ 1
     5.57  
11/12/49
     12,500       12,830,187  
Series 2007-T27, Class AJ
     5.65  
06/11/42
     3,757       4,046,650  
Series 2007-IQ14, Class A4 1
     5.69  
04/15/49
     6,690       7,203,243  
Wachovia Bank Commercial Mortgage Trust
                          
Series 2007-C31, Class L 2,4
                          
(Acquired 05/11/07, Cost $0, 0.0%)
     5.13  
04/17/47
     1,788       358  
Series 2005-C20, Class F 2,4
                          
(Acquired 10/15/10, Cost $3,158,025, 1.1%)
     5.26  
07/15/42
     4,000       3,886,288  
Series 2007-C30, Class AJ
     5.41  
12/15/43
     6,500       6,623,032  
Series 2007-C33, Class AJ
     5.94  
02/15/51
     10,000       10,477,740  
Total Commercial Mortgage-Backed Securities
                       200,141,869  
Mezzanine Loan - 1.9%
                          
BOCA Mezzanine
     8.16  
08/15/15
     7,107       7,106,803  
Total Mezzanine Loan
                       7,106,803  
TOTAL COMMERCIAL MORTGAGE RELATED HOLDINGS
                          
(Cost $200,889,850)
                       207,248,672  
INTEREST-ONLY SECURITIES - 4.6%
                          
Commercial Mortgage Trust
                          
Series 2001-J2A, Class EIO 2,5,8
     3.85  
07/16/34
     10,000       623,120  
Federal National Mortgage Association REMICS
                          
Series 2012-125, Class MI 8
     3.50  
11/25/42
     4,404       750,641  
Series 2013-32, Class IG 8
     3.50  
04/25/33
     7,419       1,147,249  
Series 2011-46, Class BI 8
     4.50  
04/25/37
     4,700       506,730  
GMAC Commercial Mortgage Securities, Inc. Trust
                          
Series 2003-C1, Class X1 2,5,8
     1.25  
05/10/36
     1,482       38,248  
Government National Mortgage Association
                          
Series 2005-76, Class IO 5,8
     0.59  
09/16/45
     20,715       638,281  
Series 2012-100, Class IO 5,8
     0.83  
08/16/52
     32,750       2,066,288  
 
 
 
 
 
 
BROOKFIELD TOTAL RETURN FUND INC.
                    
Schedule of Investments (Unaudited) (continued)
                    
December 31, 2014
                    
           
Principal
        
   
Interest
      
Amount
        
   
Rate
  
Maturity
     (000s )  
Value
  
INTEREST-ONLY SECURITIES (continued)
                      
Series 2012-70, Class IO 5,8
     0.96 %
08/16/52
   $ 42,858     $ 2,539,135  
Series 2012-95, Class IO 5,8
     0.97  
02/16/53
     10,707       769,779  
Series 2010-132, Class IO 5,8
     1.04  
11/16/52
     10,117       530,639  
Series 2012-78, Class IO 1,5,8
     1.05  
06/16/52
     33,720       2,239,762  
Series 2013-40, Class IO 5,8
     1.08  
06/16/54
     19,436       1,278,957  
Series 2012-132, Class IO 1,5,8
     1.13  
06/16/54
     23,409       1,603,597  
Series 2012-89, Class IO 1,5,8
     1.27  
12/16/53
     34,642       2,180,015  
Vendee Mortgage Trust
                          
Series 1997-2, Class IO 5,8
     0.03  
06/15/27
     11,831       11,039  
Wachovia Bank Commercial Mortgage Trust
                          
Series 2002-C2, Class IO1 2,5,8
     1.55  
11/15/34
     2,230       2,865  
TOTAL INTEREST-ONLY SECURITIES
                          
(Cost $17,607,099)
                       16,926,345  
CORPORATE BONDS - 12.3%
                          
Automotive - 0.5%
                          
American Axle & Manufacturing, Inc. 1
     6.63  
10/15/22
     300       318,000  
American Axle & Manufacturing, Inc. 1
     7.75  
11/15/19
     350       392,000  
Chrysler Group LLC 1
     8.25  
06/15/21
     750       830,625  
Jaguar Land Rover Automotive PLC 1,2,9
     8.13  
05/15/21
     400       438,000  
Total Automotive
                       1,978,625  
Basic Industry - 1.9%
                          
Alpha Natural Resources, Inc. 1
     6.25  
06/01/21
     775       217,000  
Arch Coal, Inc. 1
     7.25  
06/15/21
     925       269,406  
Associated Materials LLC 1
     9.13  
11/01/17
     500       412,500  
Cascades, Inc. 1,9
     7.88  
01/15/20
     500       520,000  
FMG Resources August 2006 Property Ltd. 1,2,9
     6.88  
04/01/22
     525       437,062  
Hexion US Finance Corp. 1
     9.00  
11/15/20
     600       429,000  
Ineos Finance PLC 1,2,9
     7.50  
05/01/20
     425       446,250  
Masonite International Corp. 1,2,9
     8.25  
04/15/21
     600       640,500  
Polymer Group, Inc. 1
     7.75  
02/01/19
     450       466,313  
PulteGroup, Inc. 1
     6.38  
05/15/33
     550       550,000  
Standard Pacific Corp. 1
     8.38  
05/15/18
     300       339,000  
Standard Pacific Corp. 1
     8.38  
01/15/21
     450       509,625  
Steel Dynamics, Inc. 1
     7.63  
03/15/20
     300       312,750  
Trinseo Materials Operating SCA 1,9
     8.75  
02/01/19
     517       524,109  
United States Steel Corp. 1
     7.00  
02/01/18
     325       344,500  
Xerium Technologies, Inc. 1
     8.88  
06/15/18
     525       551,578  
Total Basic Industry
                       6,969,593  
Capital Goods - 0.6%
                          
AAR Corp. 1
     7.25  
01/15/22
     500       540,000  
Crown Cork & Seal Company, Inc. 1
     7.38  
12/15/26
     350       386,750  
Reynolds Group Issuer, Inc. 1
     7.88  
08/15/19
     750       790,312  
Terex Corp. 1
     6.50  
04/01/20
     600       621,000  
Total Capital Goods
                       2,338,062  
Consumer Goods - 0.6%
                          
ACCO Brands Corp. 1
     6.75  
04/30/20
     600       627,900  
Bumble Bee Holdings, Inc. 1,2
     9.00  
12/15/17
     516       541,284  
Jarden Corp. 1
     7.50  
05/01/17
     300       328,500  
Post Holdings, Inc. 1
     7.38  
02/15/22
     500       500,000  
Total Consumer Goods
                       1,997,684  
Energy - 2.0%
                          
Atlas Pipeline Partners LP 1
     5.88  
08/01/23
     600       594,000  
Basic Energy Services, Inc. 1
     7.75  
02/15/19
     550       423,500  
BreitBurn Energy Partners LP 1
     7.88  
04/15/22
     675       521,438  
Calfrac Holdings LP 1,2
     7.50  
12/01/20
     600       507,000  
Crestwood Midstream Partners LP 1
     6.00  
12/15/20
     600       574,500  
EV Energy Partners LP 1
     8.00  
04/15/19
     800       680,000  
 
 
 
 
 
BROOKFIELD TOTAL RETURN FUND INC.
                    
Schedule of Investments (Unaudited) (continued)
                    
December 31, 2014
                    
           
Principal
        
   
Interest
      
Amount
        
   
Rate
  
Maturity
     (000s )  
Value
  
CORPORATE BONDS (continued)
                      
Ferrellgas Partners LP 1
     8.63 %
06/15/20
   $ 500     $ 501,250  
Global Partners LP 2
     6.25  
07/15/22
     400       388,000  
Hilcorp Energy I LP 1,2
     8.00  
02/15/20
     600       612,000  
ION Geophysical Corp. 1
     8.13  
05/15/18
     300       252,000  
Key Energy Services, Inc. 1
     6.75  
03/01/21
     600       372,000  
Linn Energy LLC 1
     7.75  
02/01/21
     300       252,750  
Linn Energy LLC 1
     8.63  
04/15/20
     300       261,000  
Precision Drilling Corp. 1,9
     6.63  
11/15/20
     300       270,000  
RKI Exploration & Production LLC 1,2
     8.50  
08/01/21
     350       282,625  
Trinidad Drilling Ltd. 1,2,9
     7.88  
01/15/19
     600       558,000  
W&T Offshore, Inc. 1
     8.50  
06/15/19
     600       393,000  
Total Energy
                       7,443,063  
Healthcare - 1.1%
                          
CHS / Community Health Systems, Inc. 1
     7.13  
07/15/20
     700       746,375  
Fresenius Medical Care U.S. Finance II, Inc. 1,2
     5.88  
01/31/22
     300       325,500  
HCA, Inc. 1
     5.88  
05/01/23
     150       158,063  
HCA, Inc. 1
     8.00  
10/01/18
     600       687,000  
Jaguar Holding Company II 1,2
     9.50  
12/01/19
     600       643,500  
Kindred Healthcare, Inc. 1,2
     6.38  
04/15/22
     700       666,750  
Service Corporation International 1
     6.75  
04/01/16
     400       417,000  
Service Corporation International 1
     8.00  
11/15/21
     450       520,875  
Total Healthcare
                       4,165,063  
Leisure - 1.2%
                          
Boyd Gaming Corp. 1
     9.00  
07/01/20
     600       615,000  
Cedar Fair LP 1
     5.25  
03/15/21
     200       201,000  
Chester Downs & Marina LLC 1,2
     9.25  
02/01/20
     825       602,250  
Isle of Capri Casinos, Inc. 1
     7.75  
03/15/19
     600       621,000  
MGM Resorts International 1
     7.63  
01/15/17
     350       377,125  
MGM Resorts International 1
     7.75  
03/15/22
     125       138,438  
MGM Resorts International 1
     8.63  
02/01/19
     275       311,781  
MTR Gaming Group, Inc. 1
     11.50  
08/01/19
     621       672,180  
Palace Entertainment Holdings LLC 1,2
     8.88  
04/15/17
     525       532,875  
Scientific Games Corp. 1
     8.13  
09/15/18
     450       382,500  
Total Leisure
                       4,454,149  
Media - 1.3%
                          
Cablevision Systems Corp. 1
     5.88  
09/15/22
     100       101,250  
Cablevision Systems Corp. 1
     8.63  
09/15/17
     500       556,250  
CCO Holdings LLC 1
     5.75  
01/15/24
     250       252,500  
CCO Holdings LLC 1
     6.63  
01/31/22
     300       318,750  
Clear Channel Worldwide Holdings, Inc. 1
     7.63  
03/15/20
     750       789,375  
Gannett Company, Inc. 1
     6.38  
10/15/23
     500       530,000  
Lamar Media Corp. 1
     5.38  
01/15/24
     550       566,500  
Mediacom Broadband LLC 1
     6.38  
04/01/23
     550       563,750  
National CineMedia LLC 1
     6.00  
04/15/22
     525       525,000  
Numericable-SFR 2,9
     6.00  
05/15/22
     500       502,750  
Total Media
                       4,706,125  
Retail - 0.4%
                          
L Brands, Inc. 1
     7.60  
07/15/37
     500       547,500  
Levi Strauss & Co. 1
     7.63  
05/15/20
     600       630,000  
Roundy's Supermarkets, Inc. 1,2
     10.25  
12/15/20
     500       435,000  
Total Retail
                       1,612,500  
Services - 1.1%
                          
Avis Budget Car Rental LLC 1
     5.50  
04/01/23
     550       561,000  
Casella Waste Systems, Inc. 1
     7.75  
02/15/19
     500       507,500  
H&E Equipment Services, Inc. 1
     7.00  
09/01/22
     600       617,250  
Iron Mountain, Inc. 1
     6.00  
08/15/23
     250       260,000  
Iron Mountain, Inc. 1
     8.38  
08/15/21
     18       18,765  

 
 
 

BROOKFIELD TOTAL RETURN FUND INC.
                    
Schedule of Investments (Unaudited) (continued)
                    
December 31, 2014
                    
           
Principal
        
   
Interest
      
Amount
        
   
Rate
  
Maturity
     (000s )  
Value
  
CORPORATE BONDS (continued)
                      
Jurassic Holdings III, Inc. 1,2
     6.88 %
02/15/21
   $ 100     $ 93,000  
The ADT Corp. 1
     6.25  
10/15/21
     525       539,438  
The Hertz Corp. 1
     6.25  
10/15/22
     600       606,000  
The Hertz Corp. 1
     7.50  
10/15/18
     300       311,250  
United Rentals North America, Inc. 1
     7.63  
04/15/22
     450       494,775  
Total Services
                       4,008,978  
Technology & Electronics - 0.2%
                          
First Data Corp. 1,2
     7.38  
06/15/19
     750       789,375  
Total Technology & Electronics
                       789,375  
Telecommunications - 1.4%
                          
CenturyLink, Inc. 1
     7.65  
03/15/42
     300       298,500  
Cincinnati Bell, Inc. 1
     8.38  
10/15/20
     414       434,700  
Cincinnati Bell, Inc. 1
     8.75  
03/15/18
     132       135,630  
FairPoint Communications, Inc. 1,2
     8.75  
08/15/19
     600       603,000  
Frontier Communications Corp. 1
     7.13  
03/15/19
     600       657,000  
Intelsat Jackson Holdings SA 1,9
     5.50  
08/01/23
     600       596,340  
Level 3 Financing, Inc. 1
     8.63  
07/15/20
     525       566,344  
Qwest Capital Funding, Inc. 1
     6.88  
07/15/28
     350       350,000  
T-Mobile USA, Inc. 1
     6.63  
04/01/23
     550       563,200  
Wind Acquisition Finance SA 2,9
     7.38  
04/23/21
     250       235,950  
Windstream Corp. 1
     7.50  
06/01/22
     525       523,687  
Total Telecommunications
                       4,964,351  
TOTAL CORPORATE BONDS
                          
(Cost $47,744,541)
                       45,427,568  
             
Shares
    
Value
  
PREFERRED STOCKS - 2.5%
                          
Finance & Investment - 2.5%
                          
Ally Financial, Inc., 7.00% 2
               5,000     $ 5,022,969  
Public Storage, 6.00%
               160,000       4,041,600  
Total Finance & Investment
                       9,064,569  
TOTAL PREFERRED STOCKS
                          
(Cost $9,031,250)
                       9,064,569  
Total Investments - 139.0%
                          
(Cost $498,621,021)
                       513,555,074  
Liabilities in Excess of Other Assets - (39.0)%
                       (144,169,079 )
TOTAL NET ASSETS - 100.0%
                     $ 369,385,995  


The following notes should be read in conjunction with the accompanying Schedule of Investments.
            
1
- Portion or entire principal amount delivered as collateral for reverse repurchase agreements.
            
2
- 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, 2014, the total value of all such securities was $101,933,878 or 27.6% of net assets.
3
- Security is a “step up” bond where the coupon increases or steps up at a predetermined date.
            
4
- 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 represents the acquisition date, cost and the percentage of net assets, respectively. As of December 31, 2014 the total value of all such securities was $30,432,988 or 8.2% of net assets.
5
- Variable rate security - interest rate shown is the rate in effect as of December 31, 2014.
            
6
- Security is an inverse floating rate bond.
              
7
- Security is fair valued in good faith pursuant to the fair value procedures adopted by the Board of Directors. As of December 31, 2014, the total value of all such securities was $118,572 or 0.00% of net assets.
8
- Interest rate is based on the notional amount of the underlying mortgage pools.
              
9
- Foreign security or a U.S. security of a foreign company.
              
 
 
 
 
 
 
Notes to Financial Statements (Unaudited)
 
Valuation of Investments: Debt securities, including U.S. government securities, listed corporate bonds, other fixed income and asset-backed securities, and unlisted securities and private placement securities, are generally valued at the bid prices furnished by an independent pricing service or, if not valued by an independent pricing service, using bid prices obtained from active and reliable market makers in any such security or a broker-dealer. The broker-dealers or pricing services use multiple valuation techniques to determine fair value. In instances where sufficient market activity exists, the broker-dealers or pricing services may utilize a market-based approach through which quotes from market makers are used to determine fair value. In instances where sufficient market activity may not exist or is limited, the broker-dealers or pricing services also utilize proprietary valuation models which may consider market transactions in comparable securities and the various relationships between securities in determining fair value and/or market characteristics such as benchmark yield curves, option-adjusted spreads, credit spreads, estimated default rates, coupon-rates, anticipated timing of principal repayments, underlying collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair values. Short-term debt securities with remaining maturities of sixty days or less are valued at cost with interest accrued or discount accreted to the date of maturity, unless such valuation, in the judgment of the Adviser’s Valuation Committee, does not represent market value.
 
Investments in equity securities listed or traded on any securities exchange or traded in the over-the-counter market are valued at the last trade price as of the close of business on the valuation date. Investments in open-end registered investment companies, if any, are valued at the net asset value (“NAV”) as reported by those investment companies.
 
Fair valuation procedures may be used to value a substantial portion of the assets of the Fund. The Fund may use the fair value of a security to calculate its NAV when, for example, (1) a portfolio security is not traded in a public market or the principal market in which the security trades is closed, (2) trading in a portfolio security is suspended and not resumed prior to the normal market close, (3) a portfolio security is not traded in significant volume for a substantial period, or (4) the Adviser determines that the quotation or price for a portfolio security provided by a broker-dealer or an independent pricing service is inaccurate.
 
 
 
 
 
The fair value of securities may be difficult to determine and thus judgment plays a greater role in the valuation process. The fair valuation methodology may include or consider the following guidelines, as appropriate: (1) evaluation of all relevant factors, including but not limited to, pricing history, current market level, supply and demand of the respective security; (2) comparison to the values and current pricing of securities that have comparable characteristics; (3) knowledge of historical market information with respect to the security; (4) other factors relevant to the security which would include, but not be limited to, duration, yield, fundamental analytical data, the Treasury yield curve, and credit quality.
 
The values assigned to fair valued investments are based on available information and do not necessarily represent amounts that might ultimately be realized, since such amounts depend on future developments inherent in long-term investments. Changes in the fair valuation of portfolio securities may be less frequent and of greater magnitude than changes in the price of portfolio securities valued at their last sale price, by an independent pricing service, or based on market quotations. Imprecision in estimating fair value can also impact the amount of unrealized appreciation or depreciation recorded for a particular portfolio security and differences in the assumptions used could result in a different determination of fair value, and those differences could be material.
 
The Fund’s Board of Directors (the “Board”) has adopted procedures for the valuation of the Fund’s securities. The Adviser oversees the day to day responsibilities for valuation determinations under these procedures. The Board regularly reviews the application of these procedures to the securities in the Fund’s portfolio. Pursuant to the procedures, securities in the Fund are valued using unadjusted quoted market prices, when available, as supplied primarily by third party pricing services or dealers. However, if (i) a market value or price is not readily available, (ii) the available quotations are not believed to be reflective of market value by the Adviser, or (iii) a significant event has occurred that would materially affect the value of the security, the security is fair valued, as determined in good faith, by the Adviser’s Valuation Committee. The Adviser’s Valuation Committee is comprised of senior members of the Adviser’s management team. There can be no assurance that the Fund could purchase or sell a portfolio security at the price used to calculate the Fund’s NAV.
 
The Fund has established methods of fair value measurements in accordance with GAAP. Fair value denotes the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy has been established to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
 
 
• 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, prepayment speeds, credit risk, etc.)
 
• Level 3 -
significant unobservable inputs (including each Fund’s own assumptions in determining the fair value of assets or liabilities)
 
The Adviser’s valuation policy, as previously stated, establishes parameters for the sources and types of valuation analysis, as well as, the methodologies and inputs the Adviser uses in determining fair value, including the use of the Adviser’s Valuation Committee.  If the Valuation Committee determines that additional techniques, sources or inputs are appropriate or necessary in a given situation, such additional work will be undertaken.
 
Significant increases or decreases in any of the unobservable inputs in isolation may result in a lower or higher fair value measurement.
 
 
 
 
 
To assess the continuing appropriateness of security valuations, the Adviser (or its third party service provider who is subject to oversight by the Adviser), compares daily its prior day prices, prices on comparable securities and sales prices and challenges those prices that either remain unchanged or exceeds certain tolerance levels with the third party pricing service or broker source.  For those securities valued by fair valuations, the Valuation Committee reviews and affirms the reasonableness of the valuations based on such methodologies and fair valuation determinations on a regular basis after considering all relevant information that is reasonably available.
 
The inputs or methodology used for valuing investments are not necessarily an indication of the risk associated with investing in those securities.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of December 31, 2014:

Valuation Inputs
  
Level 1
    
Level 2
    
Level 3
    
Total
  
U.S. Government & Agency Obligations
   $ -     $ 18,997,557     $ -     $ 18,997,557  
Asset-Backed Securities
     -       15,985,197       1,560,910       17,546,107  
Residential Mortgage Related Holdings
     -       15,415,857       182,928,399       198,344,256  
Commercial Mortgage Related Holdings
     -       -       207,248,672       207,248,672  
Interest-Only Securities
     -       -       16,926,345       16,926,345  
Corporate Bonds
     -       45,427,568       -       45,427,568  
Preferred Stocks
     4,041,600       5,022,969       -       9,064,569  
Total
   $ 4,041,600     $ 100,849,148     $ 408,664,326     $ 513,555,074  

The following table provides quantitative information about the Fund’s Level 3 values, as well as their inputs, as of December 31, 2014. The table is not all-inclusive, but provides information on the significant Level 3 inputs.

   
Quantitative Information about Level 3 Fair Value Measurements(1)
  
 Assets
  
Value as of December 31,
2014
  
 Valuation
Methodology
 Significant
Unobservable
Input
  
Price
  
Commercial Mortgage Related Holdings
   $ 118,572  
 Discounted
 Implied
   $ 100.90  
         
 Cash Flow
 Spread to
        
           
 Index
        
(1) The table above does not include Level 3 securities that are valued by brokers and pricing services. At December 31, 2014, the value of these securities was approximately $408,545,754. The inputs for these securities are not readily available or cannot be reasonably estimated and are generally those inputs described in the Valuation of Investments Note. The appropriateness of fair values for these securities is monitored on an ongoing basis which may include results of back testing, unchanged price review, results of broker and vendor due diligence and consideration of macro or security specific events.
  
 
The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:
 
Investments in Securities
  
Asset-
Backed
Securities
    
Residential Mortgage
Related
Holdings
    
Commercial Mortgage
Related
Holdings
    
Interest-Only
Securities
    
Total
  
Balance as of September 30, 2014
   $ 1,773,069     $ 171,344,876     $ 222,025,425     $ 18,358,034     $ 413,501,404  
Accrued Discounts (Premiums)
     -       633,587       1,578,241       (541,557 )     1,670,271  
Realized Gain (Loss)
     -       2,237,852       1,675,819       9,686,407       13,600,078  
Change in Unrealized Appreciation (Depreciation)
     (1,079 )     (2,096,471 )     (3,999,236 )     (277,353 )     (6,374,139 )
Purchases at cost
     -       28,881,939       -       -       28,881,939  
Sales proceeds
     (211,080 )     (18,073,384 )     (14,031,577 )     (10,299,186 )     (42,615,227 )
Balance as of December 31, 2014
   $ 1,560,910     $ 182,928,399     $ 207,248,672     $ 16,926,345     $ 408,664,326  
Change in unrealized gains or losses relating to assets still held at reporting date
   $ (1,079 )   $ (1,134,563 )   $ (1,954,615 )   $ (277,353 )   $ (3,367,610 )
 
 
 
 

For the three months ended December 31, 2014, transfers from Level 1 to Level 2 were $5,022,969. The transfers were due to lack of trading volume. The basis for recognizing and valuing transfers is as of the end of the period in which the transfers occur. There have been no additional transfers between the Levels.

Reverse Repurchase Agreements: The Fund may enter into reverse repurchase agreements. Under a reverse repurchase agreement, the Fund sells securities and agrees to repurchase them at a mutually agreed upon date and price. Under the 1940 Act, reverse repurchase agreements will be regarded as a form of borrowing by the Fund unless, at the time they enter into a reverse repurchase agreement, it establishes and maintains a segregated account with its custodian containing securities from its portfolio having a value not less than the repurchase price (including accrued interest). The Fund has established and maintained such accounts for its reverse repurchase agreements.
 
Reverse repurchase agreements involve the risk that the market value of the securities retained in lieu of sale by the Fund may decline below the price of the securities the Fund has sold but is obligated to repurchase. In the event the buyer of securities under a reverse repurchase agreement files for bankruptcy or becomes insolvent, such buyer or its trustee or receiver may receive an extension of time to determine whether to enforce the Fund’s obligation to repurchase the securities, and the Fund’s use of the proceeds of the reverse repurchase agreement may effectively be restricted pending such decision. Also, the Fund would bear the risk of loss to the extent that the proceeds of the reverse repurchase agreement are less than the value of the securities subject to such agreements.
 
At December 31, 2014, the Fund had the following reverse repurchase agreements outstanding:
 
Face Value
  
Description
  
Maturity
Amount
  
$ 686,000  
Credit Suisse, 0.39%, dated 11/05/14, maturity 02/05/15
   $ 686,684  
  8,071,000  
Goldman Sachs, 0.40%, dated 11/05/14, maturity 02/03/15
     8,079,071  
  5,759,000  
JP Morgan Chase, 0.34%, dated 10/06/14, maturity 01/05/15
     5,763,950  
  2,231,000  
JP Morgan Chase, 1.02%, dated 12/30/14, maturity 01/29/15
     2,232,895  
  944,900  
JP Morgan Chase, 1.03%, dated 10/14/14, maturity 01/12/15
     947,333  
  5,277,000  
JP Morgan Chase, 1.06%, dated 12/08/14, maturity 01/07/15
     5,281,669  
  11,827,000  
JP Morgan Chase, 1.08%, dated 10/14/14, maturity 01/12/15
     11,858,933  
  2,492,000  
JP Morgan Chase, 1.13%, dated 10/14/14, maturity 01/12/15
     2,499,040  
  1,804,000  
JP Morgan Chase, 1.13%, dated 10/21/14, maturity 01/20/15
     1,809,163  
  6,737,000  
JP Morgan Chase, 1.58%, dated 10/27/14, maturity 01/26/15
     6,763,951  
  29,809,000  
RBC Capital Markets, 0.86%, dated 10/01/14, maturity 01/02/15
     29,875,233  
  448,000  
RBC Capital Markets, 0.86%, dated 12/23/14, maturity 01/02/15
     448,107  
  16,000  
RBC Capital Markets, 0.86%, dated 12/30/14, maturity 01/02/15
     16,001  
  2,726,000  
RBC Capital Markets, 0.93%, dated 07/01/14, maturity 01/02/15
     2,738,983  
  477,000  
RBC Capital Markets, 0.93%, dated 07/14/14, maturity 01/02/15
     479,112  
  483,000  
RBC Capital Markets, 0.93%, dated 10/06/14, maturity 01/02/15
     484,094  
  448,000  
RBC Capital Markets, 0.93%, dated 10/16/14, maturity 01/02/15
     448,900  
 
 
 
 
 
  4,765,000  
RBC Capital Markets, 0.93%, dated 10/16/14, maturity 01/16/15
     4,776,314  
  390,000  
RBC Capital Markets, 0.93%, dated 12/10/14, maturity 01/02/15
     390,231  
  2,794,000  
RBC Capital Markets, 0.95%, dated 09/11/14, maturity 03/12/15
     2,807,481  
  5,801,000  
RBC Capital Markets, 0.98%, dated 10/16/14, maturity 01/16/15
     5,815,515  
  16,374,000  
RBC Capital Markets, 1.48%, dated 10/16/14, maturity 01/16/15
     16,435,892  
  4,047,000  
RBC Capital Markets, 1.58%, dated 12/03/14, maturity 06/03/15
     4,079,305  
  43,043,000  
RBC Capital Markets, 1.59%, dated 12/12/14, maturity 06/12/15
     43,388,493  
  3,262,000  
RBC Capital Markets, 1.68%, dated 08/26/14, maturity 02/26/15
     3,289,993  
  3,061,000  
RBC Capital Markets, 1.88%, dated 10/02/14, maturity 10/02/15
     3,119,303  
  2,768,000  
RBC Capital Markets, 1.93%, dated 10/02/14, maturity 10/02/15
     2,822,125  
  1,217,000  
Wells Fargo Advisors, 1.66%, dated 12/01/14, maturity 01/05/15
     1,218,958  
$ 167,757,900  
Maturity Amount, Including Interest Payable
   $ 168,556,729  
     
Market Value of Assets Pledged as Collateral for the Reverse Repurchase Agreements
   $ 198,238,819  
     
Weighted Average Interest Rate
     1.21 %
 
The average daily balance of reverse repurchase agreements outstanding for the Fund during the three months ended December 31, 2014, was approximately $159,647,240 at a weighted average interest rate of 1.22%.
 
The maximum amount of reverse repurchase agreements outstanding at any time during the period was $168,441,900, which was 31.03% of the Fund’s total assets.

TBA Transactions: The Fund may enter into to-be-announced (“TBA”) transactions to hedge its portfolio positions or to sell mortgage-backed securities it owns under delayed delivery arrangements. A TBA transaction is a purchase or sale of a U.S. government agency mortgage pass-through security for future settlement at an agreed upon date. The term “U.S. government agency mortgage pass-through security” refers to a category of passthrough securities backed by pools of mortgages and issued by one of several U.S. government-sponsored enterprises: the Government National Mortgage Association (Ginnie Mae), Federal National Mortgage Association (Fannie Mae), or Federal Home Loan Mortgage Corporation (Freddie Mac). In the basic pass-through structure, mortgages with similar issuer, term and coupon characteristics are collected and aggregated into a pool. The pool is assigned a CUSIP number and undivided interests in the pool are traded and sold as pass-through securities. The holder of the security is entitled to a pro rata share of principal and interest payments (including unscheduled prepayments) from the pool of mortgage loans. TBA transactions increase the liquidity and pricing efficiency of transactions in such mortgage-backed securities since they permit similar mortgage-backed securities to be traded interchangeably pursuant to commonly observed settlement and delivery requirements. Proceeds of TBA transactions are not received until the contractual settlement date. The Fund may use TBA transactions to acquire and maintain exposure to mortgage-backed securities in either of two ways. Typically, the Fund will enter into TBA agreements and “roll over” such agreements prior to the settlement date stipulated in such agreements. This type of TBA transaction is commonly known as a “TBA roll.” In a “TBA roll,” the Fund generally will sell the obligation to purchase the pools stipulated in the TBA agreement prior to the stipulated settlement date and will enter into a new TBA agreement for future delivery of pools of mortgage pass-through securities. Alternatively, the Fund will enter into TBA agreements and settle such transactions on the stipulated settlement date by actual receipt or delivery of the pools of mortgage pass-through securities stipulated in the TBA agreement. Unsettled TBA agreements are valued at the current market value of the underlying securities, according to the procedures described above under “Valuation of Investments.” Each TBA position is marked-to-market daily and the change in market value is recorded by the Fund as an unrealized gain or loss.

TBA transactions outstanding at December 31, 2014 were as follows:
 
 
 
 
 
 Purchases:

Security Name
Interest Rate
  
Principal
Amount
  
Current
Payable
Federal Home Loan Mortgage Corporation
   4.00%
  
$2,000,000
  
$2,126,639
Federal National Mortgage Association
4.00
  
  2,000,000
  
  2,128,826
          $4,255,465

Financial Futures Contracts: A futures contract is an agreement between two parties to buy and sell a financial instrument for a set price on a future date. Initial margin deposits are made upon entering into futures contracts and can be either cash or securities. During the period the futures contract is open, changes in the value of the contract are recognized as unrealized gains or losses by “marking-to-market” on a daily basis to reflect the market value of the contract at the end of each day’s trading. Variation margin payments are made or received, depending upon whether unrealized gains or losses are incurred. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract.

The Fund invests in financial futures contracts to hedge against fluctuations in the value of portfolio securities caused by changes in prevailing market interest rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. The Fund is at risk that it may not be able to close out a transaction because of an illiquid market. The Fund did not have any futures contracts outstanding during the three months ended December 31, 2014.

Federal Income Tax Basis: The federal income tax basis of the Fund’s investments at December 31, 2014 was as follows.
 
 
Cost of Investments
Gross
Unrealized Appreciation
Gross
Unrealized Depreciation
Net
Unrealized Appreciation
$498,621,021
$35,225,441
$(20,291,388)
$14,934,053

Item 2. 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-Q.
 
(b) As of the date of filing this Form N-Q, 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 last fiscal quarter that has materially affected or is reasonably likely to materially affect the Registrant's internal control over financial reporting.
 
Item 3. Exhibits
 
(a) Certifications for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act. Filed herewith.
 

 
 
 
 
 
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.


(Registrant) Brookfield Total Return Fund Inc.

 
By (Signature and Title)              /s/ Brian F. Hurley                                             
Brian F. Hurley
Principal Executive Officer


Date:   February 27, 2015



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 (Signature and Title)               /s/ Brian F. Hurley                                            
Brian F. Hurley
Principal Executive Officer


Date:   February 27, 2015

By (Signature and Title)           /s/ Angela W. Ghantous                                                                                                                                    
Angela W. Ghantous
Treasurer and Principal Financial Officer


Date:   February 27, 2015