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No. of Recommendations: 5
Dear Sir / Madam,

I am a co-owner of Brookfield Asset Management. Typically I am to find companies that I can hold forever and so clearly I deeply believe in your future.

However I was disappointed to read your view of institutional client's assets growing exponentially. You quoted the figures on page 23 of the slides for your Annual General Meeting:

1970s $ 5 Trillion
2000s $ 30 Trillion
2012 $ 45 Trillion
2020s $ 70 Trillion

This is a 14x increase in assets over 50 years. However 50 years of inflation at 4% leads to 7 times the return which accounts for the bulk of the increase.

If you add a population growth of 1.2% on top of this, you to the 14x increase in assets.

The real increase in assets is only in the vicinity of 0.2%, so Brookfield Asset Management should be instead reporting that not only are the institutional client's assets not growing exponentially but that the main message is that they have not even been growing at all over the 50 years in real terms, and thus growth for Brookfield Asset Management will rely on obtaining a larger share of the assets and not the asset pool itself increasing.

Can you please bring this attention to the manager responsible for expressing this idea.

Despite this being a mild correction I feel that you should have the logic right particularly regarding the big picture.

Best regards
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