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 811-21465
CBRE Clarion Global Real Estate Income Fund |
(Exact name of registrant as specified in charter)
201 King of Prussia Road, Suite 600 Radnor, PA 19087 |
(Address of principal executive offices) (Zip code)
T. Ritson Ferguson, President and Chief Executive Officer CBRE Clarion Global Real Estate Income Fund 201 King of Prussia Road, Suite 600 Radnor, PA 19087 |
(Name and address of agent for service)
Registrants telephone number, including area code: 1-888-711-4272
Date of fiscal year end: December 31
Date of reporting period: December 31, 2012
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR 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 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. § 3507.
Item 1. | Report(s) to Stockholders. |
The Annual Report of CBRE Clarion Global Real Estate Income Fund (the Trust) transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:
CBRE CLARION GLOBAL REAL ESTATE
INCOME FUND
Annual Report for the Year Ended December 31, 2012
CBRE Clarion Global Real Estate Income Fund (the Trust), acting in accordance with an exemptive order received from the Securities and Exchange Commission (SEC) and with approval of its Board of Trustees (the Board), has adopted a managed distribution policy (the Policy) with the purpose of distributing over the course of each year, through periodic distributions as nearly equal as practicable and any required special distributions, an amount closely approximating the total taxable income of the Trust during such year and all of the returns of capital paid by portfolio companies to the Trust during such year. In accordance with its Policy, the Trust distributes a fixed amount per common share, currently $0.045, each month to its common shareholders. This amount is subject to change from time to time in the discretion of the Board. Although the level of distributions is independent of fund performance, the Trust expects such distributions to correlate with its performance over time. Each monthly distribution to shareholders is expected to be at the fixed amount established by the Board, except for extraordinary distributions and potential increases or decreases in the final dividend periods for each year in light of the Trusts performance for the entire calendar year and to enable the Trust to comply with the distribution requirements imposed by the Internal Revenue Code. Over time, the Trust expects that the distribution rate in relation to the Trusts Net Asset Value (NAV) will approximately equal the Trusts total return on NAV.
The fixed amount of distributions will be reviewed and amended as necessary by the Board at regular intervals with consideration of the level of investment income and realized gains. The Board strives to establish a level regular distribution that will meet the Trusts requirement to pay out all taxable income (including amounts representing return of capital paid by portfolio companies) with a minimum of special distributions. The Trusts total return in relation to changes in NAV is presented in the financial highlights table. Shareholders should not draw any conclusions about the Trusts investment performance from the amount of the current distribution or from the terms of the Trusts managed distribution policy. The Board may amend or terminate the managed distribution policy without prior notice to Trust shareholders.
Shareholders should note that the Trusts Policy is subject to change or termination as a result of many factors. The Trust is subject to risks through ownership of its portfolio company holdings including, but not limited to, declines in the value of real estate held by the portfolio company, risks related to general and local economic conditions, and portfolio company losses. Moreover, an economic downturn could have a material adverse effect on the real estate markets and on real estate companies in which the Trust invests, which in turn could result in the Trust not achieving its investment or distribution objectives thereby jeopardizing the continuance of the Policy. Please refer to the prospectus for a fuller description of the Trusts risks.
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND ANNUAL REPORT 2012
2 | ||||
8 | ||||
10 | ||||
15 | ||||
23 |
ANNUAL REPORT 2012 | 1 |
(1) | The S&P Developed Property Index is an unmanaged market-weighted total return index which consists of over 350 real estate companies from 22 developed markets with a free float total market capitalization of at least U.S. $100 million that derive more than 60% of their revenue from real estate development, management, rental and/or direct investment in physical property. |
(2) | The MSCI REIT Preferred Index is a preferred stock market capitalization weighted index of all exchange traded preferred securities of equity REITs. |
(3) | We include the return of this blended index as a reference point, since the Trust invests in both common and preferred stocks issued by listed property companies. The Trust does not have a formal performance benchmark. |
2 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Portfolio Review
The Trusts portfolio remains well-diversified by property type and geography as shown in the pie charts below. The geographic mix of the portfolio changed during the past twelve months. The Trusts holdings of preferred stock (issued by US real estate companies) has been reduced to 12% of its portfolio (versus 20% at the beginning of the year) resulting in an 8% reduction in exposure to North America. At December 31, the Trusts portfolio was 48% invested in common stock and 12% in preferred stock issued by property companies in North America. The reduction in exposure to North America gave rise to increased exposure to the Asia-Pacific region (which now comprises 28% of the portfolio compared to 23% at the start of the year) as well as to Europe (which increased to 12% from 10% a year ago). Retail continues to be the largest property type represented in the portfolio at 45%. We continue to favor retail properties, particularly top-quality malls (because historically these properties have shown more stable cash flows during economic slow-downs than other types of commercial property). The second largest property type exposure is diversified which reflects the portfolios increased exposure to the Asia-Pacific region, where many companies specialize by geography and own a mix of high quality office, retail and residential properties. The Trust also has meaningful positions in the industrial, apartment and office sectors.
Geographic Diversification |
Sector Diversification | |
Source CBRE Clarion. Geographic and Sector diversification are unaudited. Percentages presented are based on managed trust assets, which includes borrowings. The percentages in the pie charts will differ from those on the Portfolio of Investments because the figures on the Portfolio of Investments are calculated using net assets of the Trust.
Market Commentary
Listed real estate companies delivered impressive returns in 2012 generating strong double-digit returns in every region. Returns were good in absolute terms and in relative terms as regional real estate stock indices outperformed local equity market indices in 2012. Returns were strongest in the Asia-Pacific region, followed by Europe and then North America. Property companies performed well due to a high and growing dividend, strong earnings growth, and rising property values due to gradually improving economic conditions, evidence of continued improving real estate fundamentals, and accommodative capital markets.
Global Real Estate Returns By Region | ||||||||
Region/ Country | 2012 | 2011 | ||||||
World |
28.9 | % | -5.6 | % | ||||
North America |
18.5 | 8.1 | ||||||
Canada |
20.4 | 11.5 | ||||||
United States |
18.4 | 7.9 | ||||||
Europe |
30.7 | -13.5 | ||||||
Continental Europe |
28.2 | -15.6 | ||||||
United Kingdom |
35.7 | -9.2 | ||||||
Asia-Pacific |
43.3 | -16.5 | ||||||
Australia |
34.4 | -2.5 | ||||||
Hong Kong |
38.2 | -22.7 | ||||||
Japan |
46.4 | -17.0 | ||||||
Singapore |
62.6 | -23.8 |
Source: S&P Developed Property Index in USD. Not all countries displayed. An index is unmanaged and not available for direct investment. Past performance is no guarantee of future results.
ANNUAL REPORT 2012 | 3 |
Performance leadership changed in 2012. As in past years, performance for real estate stocks varied significantly across regions last year. After two consecutive years as the best performing region, property stocks in North America underperformed in 2012. However, total returns for both U.S. and Canadian REITs were still impressive at +18% and +20%, respectively. Asia-Pacific returns were strongest as all four of its major constituent geographies delivered very good performance, including Singapore 63%, Japan 46%, Hong Kong 38%, and Australia 34%. European property companies generated strong total returns in both the U.K. and Continental Europe as investors increasingly realized that the euro zone debt crisis had stabilized and the political crisis had begun to wane. Investors were also attracted to the 4-5% dividends of European property companies, which were above the global average for real estate stocks and were also superior to many fixed income alternatives in the region. The U.S. dollar (USD) generally weakened during the year versus other major currencies with the exception of the Japanese yen. All-in, however, the currency effect for the year for a USD-based investor was negligible.
Strong returns were driven by significant increase in real estate values. In 2012, we estimate real estate values for properties owned by public real estate companies to have increased globally by approximately 12%, on a weighted average basis. Real estate values improved as a result of the combination of improving underlying earnings growth as well as investors willingness to accept lower initial yields on their real estate investments. Using real estate terminology, we experienced cap rate compression during the year. Our underwritten increases in real estate value or net asset value (NAV) by region for 2012 are reflected in the following chart:
Changes in NAV Estimates
Information is the opinion of CBRE Clarion as of 12/31/12, is subject to change and is not intended to be a forecast of future events, or a guarantee of future results, or investment advice. Forecasts and any factors discussed are not indicative of future investment performance.
Strong growth in dividends was fueled by strong earnings growth. Dividend growth in 2012 was in the high single-digit range, exceeding our predictions at the beginning of the year. We project dividend growth will continue in 2013 growing 5-8%, driven by a combination of improving company cash flows as well as an expansion of dividend payout policies which remain conservative. Dividend increases among U.S. REITs were particularly strong in 2012 with 105 increases versus 79 increases during 2011. Seventeen companies increased their dividend multiple times during the year. The weighted average increase for those U.S. companies increasing their dividends was approximately 20% which translated to a 15% increase for the entire U.S. REIT universe. For example, Simon Property Group, a large mall company, has increased its dividend in each of the past four quarters for an aggregate increase of 22%. The average dividend yield for global real estate stocks remains in the 3-5% range and is growing.
4 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
The case for investment in listed property remains robust. The investment case for property companies remains very much intact despite strong performance last year. The investment thesis remains favorable based on: (1) improving earnings, which have generally consistently met or exceeded expectations and are underpinned by contractual lease obligations; (2) attractive absolute and relative level of the dividend yield which is growing; (3) valuations that remain attractive relative to our estimate of inherent private market real estate values; (4) continued access to attractively priced capital, which has provided a competitive advantage versus many private owners of real estate; and (5) a robust commercial property sales transaction market in which listed property companies are actively involved.
We expect global property stocks to deliver a total return of 10-12% in 2013. Our return forecast is based on a well-supported dividend yield of approximately 4%, cash flow per share growth of 6-7%, and stable to improving earnings multiples. We make this projection with full knowledge that predictions often go wrong and that assumptions will likely change over the course of the year. In a new normal world of low returns and economic uncertainty, listed real estate trading at discounted valuations should, in our view, offer investors attractive total return potential.
We estimate earnings will grow again in 2013, in the 6-7% range. The bottom-up view of listed property companies appears to validate a thesis of continued improvement in cash flows despite sluggish, but improving economic growth. We expect property companies to generate earnings growth in 2013 of approximately 6-7% as the gradual economic recovery begins to gain traction which will positively affect real estate cash flows. This outlook follows earnings growth of approximately 7-8% in 2012. Our earnings growth forecasts are positive as a result of a combination of improving operating trends, improving occupancies, and positive mark-to-market of rental rates for newly signed leases. Other positive factors include improved balance sheets, access to attractively priced capital (both equity and debt) and an active transactions market.
Regional Earnings Growth Forecast
Source: CBRE Clarion as of 12/31/2012. Information is the opinion of CBRE Clarion and is subject to change and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. f refers to forecasts. Forecasts and the factors noted are not indicative of future investment performance.
ANNUAL REPORT 2012 | 5 |
We expect dividend growth will be strong again in 2013. Current income generated by listed propertys dividend yield remains a defining investment characteristic of the sector. Listed property companies currently offer dividend yields of 3-5% globally and are growing at a very healthy clip. We project average dividend growth to be in the 5-8% range in 2013, driven by a combination of improving company cash flows as well as an expansion of dividend payout policies which remain conservative. The spread between dividend yields and bonds also continues to be above-average. For example, the spread between the average dividend yield on U.S. REITs at year-end of approximately 170 basis points (3.5% dividend yield versus 1.8% yield on 10-year Treasuries) compares favorably to a long-term average of approximately 110 basis points. This above-average spread is common in many of the worlds REIT markets. Dividend yields for the major geographic markets are reflected in the chart below:
Global Dividend Yield
Source: CBRE Clarion, FactSet and Bloomberg as of 12/31/2012. Not all countries included. This information is subject to change and should not be construed as investment advice. Yields fluctuate and are not guaranteed. Past performance is no guarantee of future results.
Valuations remain reasonable despite outperformance. Listed property companies continue to trade at discounts to our estimate of the companies underlying real estate values (NAV). The discount has narrowed somewhat (to 3% from the 11% discount observed at the start of 2012), but valuations remain reasonable. Said differently, we believe that the price-earnings multiples on property stocks are generally well supported by the estimated private market value of their properties, and could expand further in 2013. The current valuations equates to a 5.7% implied unleveraged cash flow yield which is also appealing in todays investment market given an interest rate environment which remains at historical lows. We believe the unleveraged implied yield of listed property companies comfortably meets institutional underwriting requirements for compounded rates of return (i.e., IRRs in the 6-8% range). After growth from other sources like acquisitions and balance sheet refinancing are taken into account, prospective returns of listed real estate companies remain attractive.
We continue to believe that global property stocks offer investors an attractive investment option, anchored by current yield via the dividend and underpinned by increasing real estate cash flows derived from improving fundamentals.
We appreciate your continued faith and confidence.
Sincerely,
T. Ritson Ferguson | Steven D. Burton | |
President & Chief Executive Officer | Co-Portfolio Manager | |
Co-Portfolio Manager |
6 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
The views expressed represent the opinion of CBRE Clarion Securities which are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and non-proprietary sources which have not been independently verified for accuracy or completeness. While CBRE Clarion Securities believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Statements of future expectations, estimate, projections, and other forward-looking statements are based on available information and managements view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions which may involve known and unknown risks and uncertainties. The securities discussed herein should not be perceived as a recommendation to purchase or sell any particular security. It should not be assumed that investments in any of the securities discussed were or will be profitable. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in real estate securities involves risks including the potential loss of principal. Real estate equities are subject to risks similar to those associated with the direct ownership of real estate. Portfolios concentrated in real estate securities may experience price volatility and other risks associated with non-diversification. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Past performance is no guarantee of future results.
ANNUAL REPORT 2012 | 7 |
December 31, 2012
See notes to financial statements.
8 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Portfolio of Investments concluded
See notes to financial statements.
ANNUAL REPORT 2012 | 9 |
Statement of Assets and Liabilities
December 31, 2012 | ||||||
Assets |
||||||
Investments, at value (cost $921,963,701) |
$1,120,132,927 | |||||
Cash and cash equivalents (including foreign currency of $92,825 |
182,044 | |||||
Dividends and interest receivable |
7,312,204 | |||||
Dividend withholding reclaims receivable |
34,226 | |||||
Other assets |
124,844 | |||||
Total Assets |
1,127,786,245 | |||||
Liabilities |
||||||
Line of credit payable |
21,438,800 | |||||
Written options (premiums received $110,607) |
227,500 | |||||
Unrealized depreciation on spot contracts |
65 | |||||
Management fee payable |
760,588 | |||||
Accrued expenses |
362,640 | |||||
Total Liabilities |
22,789,593 | |||||
Net Assets |
$1,104,996,652 | |||||
Composition of Net Assets |
||||||
$0.001 par value per share; |
$ 116,590 | |||||
Additional paid-in capital |
1,363,136,178 | |||||
Distributions in excess of net investment income |
(80,867,885 | ) | ||||
Accumulated net realized loss on investments, written options, swap contracts and foreign currency transactions |
(375,425,954 | ) | ||||
Net unrealized appreciation on investments, written options and foreign currency denominated assets and liabilities |
198,037,723 | |||||
Net Assets |
$1,104,996,652 | |||||
Net Asset Value |
$9.48 |
See notes to financial statements.
10 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Statement of Operations
For the Year Ended |
||||||
Investment Income |
||||||
Dividends (net of foreign withholding taxes of $2,650,336) |
$48,916,116 | |||||
Interest |
1,040 | |||||
Total Investment Income |
48,917,156 | |||||
Expenses |
||||||
Management fees |
9,026,544 | |||||
Printing and mailing fees |
705,492 | |||||
Administration fees |
233,676 | |||||
Insurance fees |
175,745 | |||||
Trustees fees and expenses |
154,112 | |||||
Custodian fees |
151,814 | |||||
Legal fees |
137,525 | |||||
Interest expense on line of credit |
130,919 | |||||
NYSE listing fee |
108,430 | |||||
Audit and tax fees |
75,080 | |||||
Transfer agent fees |
39,435 | |||||
Miscellaneous expenses |
34,963 | |||||
Total Expenses |
10,973,735 | |||||
Management fee waived |
(615,238 | ) | ||||
Net Expenses |
10,358,497 | |||||
Net Investment Income |
38,558,659 | |||||
Net Realized and Unrealized Gain (Loss) on Investments, Written Options and Foreign Currency Transactions |
||||||
Net realized gain on: |
||||||
Investments |
48,020,214 | |||||
Written options |
1,029,247 | |||||
Foreign currency transactions |
61,508 | |||||
Total Net Realized Gain |
49,110,969 | |||||
Net change in unrealized appreciation (depreciation) on: |
||||||
Investments |
135,760,376 | |||||
Written options |
(116,893 | ) | ||||
Foreign currency denominated assets and liabilities |
(36,969 | ) | ||||
Total Net Change in Unrealized Appreciation (Depreciation) |
135,606,514 | |||||
Net Gain on Investments, Written Options and Foreign Currency Transactions |
184,717,483 | |||||
Net Increase in Net Assets |
$223,276,142 |
See notes to financial statements.
ANNUAL REPORT 2012 | 11 |
Statements of Changes in Net Assets
For the Year Ended |
For the Year Ended |
|||||||||||
Change in Net Assets Resulting from Operations |
||||||||||||
Net investment income |
$38,558,659 | $39,879,687 | ||||||||||
Net realized gain (loss) on investments, written options and foreign currency transactions |
49,110,969 | (5,923,615 | ) | |||||||||
Net change in unrealized appreciation (depreciation) on investments, written options and foreign currency denominated assets and liabilities |
135,606,514 | (21,658,681 | ) | |||||||||
Net increase in net assets resulting from operations |
223,276,142 | 12,297,391 | ||||||||||
Dividends and Distributions on Common Shares |
||||||||||||
Distribution of net investment income |
(67,855,667 | ) | (38,608,248 | ) | ||||||||
Distribution of return of capital |
| (24,350,619 | ) | |||||||||
Total dividends and distributions on Common Shares |
(67,855,667 | ) | (62,958,867 | ) | ||||||||
Net Increase (Decrease) in Net Assets |
155,420,475 | (50,661,476 | ) | |||||||||
Net Assets |
||||||||||||
Beginning of year |
949,576,177 | 1,000,237,653 | ||||||||||
End of year (net of distributions in excess of net investment income of $80,867,885 and $47,658,353, respectively) |
$1,104,996,652 | $949,576,177 |
See notes to financial statements.
12 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Statement of Cash Flows
For the Year Ended |
||||||
Cash Flows from Operating Activities: |
||||||
Net increase in net assets resulting from operations |
$223,276,142 | |||||
Adjustments to Reconcile Net Increase in Net Assets Resulting from Operations to Net Cash Provided by Operating Activities: |
||||||
Net change in unrealized appreciation/depreciation on investments |
(135,760,376 | ) | ||||
Net change in unrealized appreciation/depreciation on written options |
116,893 | |||||
Net realized gain on investments |
(48,020,214 | ) | ||||
Cost of securities purchased |
(152,498,079 | ) | ||||
Cost of options exercised |
203,934 | |||||
Proceeds from sale of securities |
200,963,608 | |||||
Premiums on written options |
110,607 | |||||
Decrease in receivable for investment securities sold |
3,875 | |||||
Decrease in dividends and interest receivable |
261,813 | |||||
Increase in dividend withholding reclaims receivable |
(34,226 | ) | ||||
Increase in other assets |
(7 | ) | ||||
Increase in unrealized depreciation on spot contracts |
65 | |||||
Increase in management fee payable |
137,200 | |||||
Decrease in accrued expenses |
(57,140 | ) | ||||
Net Cash Provided by Operating Activities |
88,704,095 | |||||
Cash Flows From Financing Activities: |
||||||
Cash distributions paid on common shares |
(67,855,667 | ) | ||||
Proceeds from borrowing on line of credit |
95,033,700 | |||||
Payments on line of credit |
(115,764,800 | ) | ||||
Net Cash Used in Financing Activities |
(88,586,767 | ) | ||||
Net increase in cash |
117,328 | |||||
Cash and Cash Equivalents at Beginning of Year |
64,716 | |||||
Cash and Cash Equivalents at End of Year |
$182,044 | |||||
Supplemental disclosure |
||||||
Interest paid on line of credit |
$143,434 |
See notes to financial statements.
ANNUAL REPORT 2012 | 13 |
Financial Highlights
Per share operating performance for a share outstanding throughout the year |
For the Year Ended December 31, 2012 |
For the Year Ended December 31, 2011 |
For the Year Ended December 31, 2010 |
For the Year Ended December 31, 2009 |
For the Year Ended December 31, 2008 |
|||||||||||||||||||||||||
Net asset value, beginning of year |
$8.14 | $8.58 | $7.51 | $5.63 | $16.16 | |||||||||||||||||||||||||
Income from investment operations |
||||||||||||||||||||||||||||||
Net investment income (1) |
0.33 | 0.34 | 0.36 | 0.39 | 1.11 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments, written options, swap contracts and foreign currency transactions |
1.59 | (0.24 | ) | 1.25 | 2.03 | (10.15 | ) | |||||||||||||||||||||||
Dividends and distributions on Preferred Shares from net investment income (common stock equivalent basis) |
| | | | (0.25 | ) | ||||||||||||||||||||||||
Total from investment operations |
1.92 | 0.10 | 1.61 | 2.42 | (9.29 | ) | ||||||||||||||||||||||||
Dividends and distributions on Common Shares |
||||||||||||||||||||||||||||||
Net investment income |
(0.58 | ) | (0.33 | ) | (0.54 | ) | (0.54 | ) | | |||||||||||||||||||||
Capital gains |
| | | | (0.68 | ) | ||||||||||||||||||||||||
Return of capital |
| (0.21 | ) | | | (0.56 | ) | |||||||||||||||||||||||
Total dividends and distributions to Common Shareholders |
(0.58 | ) | (0.54 | ) | (0.54 | ) | (0.54 | ) | (1.24 | ) | ||||||||||||||||||||
Net asset value, end of year |
$9.48 | $8.14 | $8.58 | $7.51 | $5.63 | |||||||||||||||||||||||||
Market value, end of year |
$8.86 | $6.84 | $7.75 | $6.37 | $3.98 | |||||||||||||||||||||||||
Total investment return (2) |
||||||||||||||||||||||||||||||
Net asset value |
24.15 | % | 0.94 | % | 22.41 | % | 46.79 | % | (61.14 | )% | ||||||||||||||||||||
Market value |
38.77 | % | (5.38 | )% | 31.06 | % | 79.09 | % | (67.38 | )% | ||||||||||||||||||||
Ratios and supplemental data |
||||||||||||||||||||||||||||||
Net assets, applicable to Common Shares, end of year (thousands) |
$1,104,997 | $949,576 | $1,000,238 | $875,448 | $586,525 | |||||||||||||||||||||||||
Ratios to average net assets applicable to Common Shares of: |
0.99 | % | 1.03 | % | 0.94 | % | 1.14 | % | 1.28 | % | ||||||||||||||||||||
Net expenses, before fee waiver + |
1.05 | % | 1.14 | % | 1.11 | % | 1.38 | % | 1.67 | % | ||||||||||||||||||||
Net expenses, after the fee waiver excluding interest on line of credit + |
0.98 | % | 0.97 | % | 0.90 | % | 1.12 | % | 1.28 | % | ||||||||||||||||||||
Net expenses, before fee waiver excluding interest on line of credit + |
1.04 | % | 1.09 | % | 1.07 | % | 1.35 | % | 1.67 | % | ||||||||||||||||||||
Net investment income, after preferred share dividends |
3.68 | % | 3.98 | % | 4.60 | % | 6.75 | % | 7.10 | % | ||||||||||||||||||||
Preferred share dividends |
N/A | N/A | N/A | 0.04 | % | 2.08 | % | |||||||||||||||||||||||
Net investment income, before preferred share dividends + |
3.68 | % | 3.98 | % | 4.60 | % | 6.79 | % | 9.18 | % | ||||||||||||||||||||
Portfolio turnover rate |
14.42 | % | 1.53 | % | 12.91 | % | 28.04 | % | 7.32 | % | ||||||||||||||||||||
Leverage analysis: |
||||||||||||||||||||||||||||||
Preferred shares, at redemption value, ($25,000 per share liquidation preference) (thousands) |
N/A | N/A | N/A | N/A | $370,000 | |||||||||||||||||||||||||
Net asset coverage per share of preferred shares |
N/A | N/A | N/A | N/A | $64,630 |
(1) | Based on average shares outstanding. |
(2) | Total investment return does not reflect brokerage commissions. Dividends and distributions are assumed to be reinvested at the prices obtained under the Trusts Dividend Reinvestment Plan. Net Asset Value (NAV) total return is calculated assuming reinvestment of distributions at NAV on the date of the distribution. |
+ | Does not reflect the effects of dividends to Preferred Shareholders. |
See notes to financial statements.
14 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
ANNUAL REPORT 2012 | 15 |
Notes to Financial Statements continued
16 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Notes to Financial Statements continued
ANNUAL REPORT 2012 | 17 |
Notes to Financial Statements continued
18 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Notes to Financial Statements continued
ANNUAL REPORT 2012 | 19 |
Notes to Financial Statements continued
20 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Notes to Financial Statements concluded
ANNUAL REPORT 2012 | 21 |
Report of Independent Registered Public Accounting Firm
To the Shareholders and Board of Trustees of
CBRE Clarion Global Real Estate Income Fund
We have audited the accompanying statement of assets and liabilities of the CBRE Clarion Global Real Estate Income Fund (the Trust), including the portfolio of investments, as of December 31, 2012, and the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Trusts management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. We were not engaged to perform an audit of the Trusts internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Trusts internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2012, by correspondence with the Trusts custodian and brokers. We believe that our audit provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of CBRE Clarion Global Real Estate Income Fund at December 31, 2012, the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended and financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.
Philadelphia, Pennsylvania
February 25, 2013
22 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Supplemental Information (unaudited)
Federal Income Tax Information
Qualified dividend income of as much as $12,357,603 was received by the Trust through December 31, 2012. The Trust intends to designate the maximum amount of dividends that qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003.
The Fund intends to elect to pass through to shareholders the credit for taxes paid of $1,652,304 during the year ended December 31, 2012. The gross foreign income for the year ended December 31, 2012 is $26,230,240.
For corporate shareholders, 0.40% of ordinary income distributions for the year ended December 31, 2012 qualified for the corporate dividends-received deduction.
In January 2013, you will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by you in the calendar year 2012.
Corporate Governance
The Fund submitted its Annual CEO certification for 2012 to the New York Stock Exchange (NYSE) on November 6, 2012 stating that the CEO was not aware of any violation by the Fund of the NYSEs corporate governance listing standards. In addition, the Fund had filed the required CEO/CFO certifications regarding the quality of the Funds public disclosure as exhibits to the Forms N-CSR and Forms N-Q filed by the Fund over the past fiscal year. The Funds Form N-CSR and Form N-Q filings are available on the Commissions website at www.sec.gov.
Result of Shareholder Votes
The Annual Meeting of Shareholders of the Fund was held on October 9, 2012.
With regard to the election of the following Trustee of the Fund:
Number of In Favor |
Number of Withheld |
|||||||||
Asuka Nakahara |
106,786,790.159 | 2,226,089.367 |
The other Trustees of the Fund whose terms did not expire in 2012 are T. Ritson Ferguson, Frederick Hammer, Richard L. Sutton and John Bartholdson.
ANNUAL REPORT 2012 | 23 |
Supplemental Information (unaudited) continued
Trustees
The Trustees of the CBRE Clarion Global Real Estate Income Fund and their principal occupations during the past five years:
Name, Address and Age |
Term of Office and Served (1) |
Title | Principal Occupations During The Past Five Years |
Number of Portfolios in the Fund Complex Overseen by Trustee |
Other Directorships Held by Trustee | |||||
Interested Trustees: | ||||||||||
T. Ritson Ferguson* 201 King of Prussia Radnor, PA 19087 Age: 53 |
3 years/ since inception |
Trustee, President and Chief Executive Officer | Chief Executive Officer and Co-Chief Investment Officer of CBRE Clarion Securities LLC | 1 | ||||||
Asuka Nakahara 201 King of Prussia Radnor, PA 19087 Age: 57 |
3 years/ since inception | Trustee | Associate Director of the Zell-Lurie Real Estate Center at the Wharton School, University of Pennsylvania (since 1999); Lecturer of Real Estate at the Wharton School, University of Pennsylvania (since 1999); Partner of Triton Atlantic Partners (since 2009). | 1 | ||||||
Frederick S. Hammer 201 King of Prussia Radnor, PA 19087 Age: 76 |
3 years/ since inception | Trustee | Co-Chairman of Inter-Atlantic Group (since 1994) and a member of its investment committee. | 1 | Serves on the Boards of Universal Business Payment Solutions Corp. (since 2011); Inter-Atlantic Financial, Inc. (2007 - 2011); E-Duction, Inc. (2005 - 2008), Avalon Insurance Holdings, Inc. (2006 - 2009) and Homeowners Insurance Corp. (since 2006); Director of US Fiduciary Corp. (2006 - 2009); Chairman of the Board of Annuity and Life Re (Holdings), Ltd. (1998 -2005). | |||||
Richard L. Sutton 201 King of Prussia Radnor, PA 19087 Age: 77 |
3 years/ since inception | Trustee | Partner, Morris, Nichols, Arsht & Tunnel (1966 - 2000). | 1 | Board of Directors of Investors in Global Real Estate Ltd. (since 2006). | |||||
John Bartholdson 201 King of Prussia Radnor, PA 19087 Age: 68 |
3 years/ 9 years |
Trustee/Audit Committee Financial Expert | Senior Vice President, CFO and Treasurer, and a Director of Triumph Group, Inc. (1993 -2007). | 1 | Board of Old Mutual Advisor Funds, Old Mutual Funds II and Old Mutual Insurance Series Fund (2004 - 2012), and Old Mutual Funds III (2008 - 2009). |
(1) | After a Trustees initial term, each Trustee is expected to serve a three-year term concurrent with the class of Trustees for which he serves. Messrs. Ferguson and Hammer, as Class I Trustees, are expected to stand for re-election at the Trusts 2014 annual meeting of shareholders; Mr. Nakahara, as Class II Trustee, is expected to stand for re-election at the Trusts 2015 annual meeting of shareholders; Messrs. Sutton and Bartholdson, as Class III Trustees, are expected to stand for re-election at the Trusts 2013 annual meeting of shareholders. |
* | Mr. Ferguson is deemed to be an interested person of the Trust as defined in the Investment Company Act of 1940 (the 1940 ACT), as amended, due to his position with the Advisor. |
24 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Supplemental Information (unaudited) continued
Officers
The Officers of the CBRE Clarion Global Real Estate Income Fund and their principal occupations during the past five years:
Name, Address, Age and Position(s) Held with Registrant |
Length of Time Served |
Principal Occupations During the Past Five Years and Other Affiliations | ||
Officers: | ||||
Jonathan A. Blome 201 King of Prussia Road, Suite 600 Radnor, PA 19087 Age: 35 Chief Financial Officer |
since 2006 | Chief Financial Officer and Director of Operations of CBRE Clarion Securities LLC (since 2011); Director and Head of Operations of CBRE Clarion Securities LLC (since 2010); Senior Vice President of CBRE Clarion Securities LLC (2005 - 2010). | ||
William E. Zitelli 201 King of Prussia Road, Suite 600 Radnor, PA 19087 Age: 44 Chief Compliance Officer and Secretary |
since 2007 | General Counsel of CBRE Clarion Securities LLC (since 2007), Chief Compliance Officer of CBRE Clarion Securities LLC (2007 - 2010). |
ANNUAL REPORT 2012 | 25 |
Supplemental Information (unaudited) continued
Board Considerations in Approving the Advisory Agreement
At a meeting of the Board held on December 5, 2012, the Board, including all of those Trustees of the Trust who are not interested persons of the Trust within the meaning of the Investment Company Act of 1940, approved the continuation of the investment management agreement (the Advisory Agreement) between the Advisor and the Trust through December 31, 2013. Overall, the Board concluded that continuation of the Advisory Agreement was in the best interests of the Trust and consistent with shareholder expectations. During the course of its deliberations, the Board received information relating to other closed-end equity funds, including those whose investment objectives and policies are similar to the Trust (the peer group), as well as information relating to other accounts managed by the Advisor whose investment objectives and policies are similar to the Trust. In determining to approve the continuation of the Advisory Agreement, the Board took into account a number of factors, without assigning relative weight to any factor or identifying any factor as determinative. Rather, the Board based its finding on the specific facts and circumstances of the Trust.
In approving the continuation of the Advisory Agreement, the Board reviewed the nature, extent and quality of advisory services and administrative services provided by the Advisor during the period following the acquisition of the Advisor by CBRE Group, Inc. (CBRE) on July 1, 2011, including the performance achieved by the Advisor for the Trust during volatile market conditions, the consistency of the Advisors investment decision process, the experience of the Advisors personnel, including additional research capability and other resources available to the Advisor, in part, as a the result of its affiliation with CBRE. The Board also considered the administrative resources devoted by the Advisor to oversight of the Trusts operations, noting that administrative and related compliance oversight services are provided to the Trust under the terms of the Advisory Agreement and without (unlike some funds in the peer group) separate charge to the Trust. The Board also considered the Trusts strategic focus on providing income to its shareholders and current economic trends and conditions, as well as the performance and expenses of comparable closed-end equity funds, including peer group funds. The Board concluded that the quality of the services provided to the Trust by the Advisor was satisfactory and supported the continued retention of the Advisor by the Trust.
During its deliberations, the Board also considered information provided to it by the Advisor with respect to CBRE, including management representations to the effect that the Advisors senior management continued to be focused on the continuation of the Advisors core business.
The Board also considered the level of compensation to which the Advisor is entitled under the Advisory Agreement. Among other things, the Board considered the upcoming expiration of the Advisors fee waiver, and the rate at which the Advisors fee is calculated. The Board reviewed information provided by the Advisor with respect to the profits realized by the Advisor as a result of its services to the Trust and as compared to the Advisors profitability as a result of its management of other advisory accounts, as well as information about the fees and expenses of comparable closed-end equity funds, including the Trusts peer group. The Board concluded that the Advisors fees continue to be within the range of fees of other closed-end equity funds, including the peer group, and that the Trusts expense ratio has remained at levels at or below the peer group funds. The Board concluded that fees paid to the Adviser by the Trust were not excessive and that the advisory fee rate is reasonable under the circumstances of the Trust, notwithstanding the fact that the fee waiver afforded to the Trust by the Adviser since the commencement of the Trusts operations in February 2004, is set to expire in February 2013. Although reviewed by the Board, the potential for realization of economies of scale was not a factor in the Boards conclusions, because the Trust is a closed-end vehicle with limited potential for asset growth.
26 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Supplemental Information (unaudited) concluded
Additional Information
Statement of Additional Information includes additional information regarding the Trustees. This information is available upon request, without charge, by calling the following toll-free telephone number: 1-888-711-4272.
The Trust has delegated the voting of the Trusts voting securities to the Trusts advisor pursuant to the proxy voting policies and procedures of the advisor. You may obtain a copy of these policies and procedures by calling 1-888-711-4272. The policies may also be found on the website of the Securities and Exchange Commission (http://www.sec.gov).
Information regarding how the Trust voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request by calling the Trust at 1-888-711-4272 or by accessing the Trusts Form N-PX on the Commissions website at http://www.sec.gov.
The Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Trusts Form N-Qs are available on the SEC website at http://www.sec.gov. The Trusts Form N-Qs may also be viewed and copied at the Commissions Public Reference Room in Washington, DC; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.
Dividend Reinvestment Plan (unaudited)
Pursuant to the Trusts Dividend Reinvestment Plan (the Plan), shareholders of the Trust are automatically enrolled, to have all distributions of dividends and capital gains reinvested by The Bank of New York Mellon (the Plan Agent) in the Trusts shares pursuant to the Plan. You may elect not to participate in the Plan and to receive all dividends in cash by sending written instructions or by contacting The Bank of New York Mellon, as dividend disbursing agent, at the address set forth below. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by contacting the Plan Agent before the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution. Shareholders who do not participate in the Plan will receive all distributions in cash paid by check and mailed directly to the shareholders of record (or if the shares are held in street or other nominee name, then to the nominee) by the Plan Agent, which serves as agent for the shareholders in administering the Plan.
After the Trust declares a dividend or determines to make a capital gain distribution, the Plan Agent will acquire shares for the participants account, depending upon the circumstances described below, either (i) through receipt of unissued but authorized shares from the Trust (newly issued shares) or (ii) by open market purchases. If, on the dividend payment date, the NAV is equal to or less than the market price per share plus estimated brokerage commissions (such condition being referred to herein as market premium), the Plan Agent will invest the dividend amount in newly issued shares on behalf of the participants. The number of newly issued shares to be credited to each participants account will be determined by dividing the dollar amount of the dividend by the NAV on the date the shares are issued. However, if the NAV is less than 95% of the market price on the payment date, the dollar amount of the dividend will be divided by 95% of the market price on the payment date. If, on the dividend payment date, the NAV is greater than the market value per share plus estimated brokerage commissions (such condition being referred to herein as market discount), the Plan Agent will invest the dividend amount in shares acquired on behalf of the participants in open-market purchases.
The Plan Agents fees for the handling of the reinvestment of dividends and distributions will be paid by the Trust. However, each participant will pay a pro rata share of brokerage commissions incurred with respect to the Plan Agents open market purchases in connection with the reinvestment of dividends and distributions. The automatic reinvestment of dividends and distributions will not relieve participants of any Federal income tax that may be payable on such dividends or distributions.
The Trust reserves the right to amend or terminate the Plan. There is no direct service charge to participants in the Plan; however, the Trust reserves the right to amend the Plan to include a service charge payable by the participants. Participants that request a sale of shares through the Plan Agent are subject to a $2.50 sales fee and a $0.15 per share sold brokerage commission. All correspondence concerning the Plan should be directed to the Plan Agent at Computershare Shareowner Services LLC, P.O. Box 358035, Pittsburgh, PA 15252-8035, Phone Number: (866) 221-1580.
ANNUAL REPORT 2012 | 27 |
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
Item 2. | Code of Ethics. |
(a) The Trust has adopted a Code of Ethics for Senior Financial Officers (the Financial Officer Code of Ethics) that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
(b) Not applicable.
(c) The Trust has not amended its Financial Officer Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.
(d) The Trust has not granted a waiver or an implicit waiver from a provision of its Financial Officer Code of Ethics.
(e) Not applicable.
(f) The Trusts Financial Officer Code of Ethics is attached hereto as an exhibit.
Item 3. | Audit Committee Financial Expert. |
All of the members of the audit committee have the business and financial experience necessary to understand the fundamental financial statements of a closed-end, registered investment company; further, each member of the committee is financially literate, as such qualification is interpreted by the Board of Trustees in its business judgment. In addition, the Board has determined that John R. Bartholdson is an audit committee financial expert and independent as those terms are defined in Item 3 of Form N-CSR.
Item 4. | Principal Accountant Fees and Services. |
(a) Audit Fees. The aggregate fees billed from the Trusts fiscal year ended December 31, 2011 and fiscal year ended December 31, 2012, for professional services rendered by the principal accountant for the audit of the Trusts annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements are as follows:
2012: $48,000
2011: $47,000
(b) Audit-Related Fees. The aggregate fees billed from the Trusts fiscal year ended December 31, 2011 and fiscal year ended December 31, 2012 for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Trusts financial statements and are not reported above in Item 4(a) are as follows:
2012: $0
2011: $0
(c) Tax Fees. The aggregate fees billed from the Trusts fiscal year ended December 31, 2011 and fiscal year ended December 31, 2012 for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning are as follows:
2012: $24,500
2011: $24,500
(d) All Other Fees. The aggregate fees billed from the Trusts fiscal year ended December 31, 2011 and fiscal year ended December 31, 2012 for products and services provided by the principal accountant, other than the services reported above in Items 4(a) through (c) are as follows:
2012: $0
2011: $0
(e) | Audit Committee Pre-Approval Policies and Procedures. |
(i) The Trust has an Audit Committee Charter in place (the Charter) that governs the pre-approval by the Trusts Audit Committee of all engagements for audit services and all Covered Non-Audit Engagements (as defined in the Charter) provided by the Trusts independent auditor (the Independent Auditor) to the Trust and other Related Entities (as defined below). Each calendar year, the Audit Committee will review and re-approve the Charter, together with any changes deemed necessary or desirable by the Audit Committee. The Audit Committee may, from time to time, modify the nature of the services pre-approved, the aggregate level of fees pre-approved, or both.
Related Entities means (i) CBRE Clarion Securities LLC (the Advisor) or (ii) any entity controlling, controlled by or under common control with the Advisor.
Pre-approval shall be required only with respect to non-audit services (i) related directly to the operations and financial reporting of the Trust and (ii) provided to a Related Entity that furnishes ongoing services to the Trust. Such pre-approval shall not apply to non-audit services provided to any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser. Pre-approval by the Audit Committee of such non-audit services shall be effected pursuant to the pre-approval procedures described in the Charter. The Charter shall not be violated if pre-approval of any such non-audit service is not obtained in circumstances in which the pre-approval requirement is waived under applicable rules promulgated by the Securities and Exchange Commission (SEC) or the NYSE, in accordance with the Sarbanes Oxley Act.
Requests for pre-approval of Covered Non-Audit Engagements are submitted to the Audit Committee by the Independent Auditor and by the chief financial officer of the Related Entity for which the non-audit services are to be performed. Such requests must include a statement as to whether, in the view of the Independent Auditor and such officer, (a) the request is consistent with the SECs rules on auditor independence and (b) the requested service is or is not a non-audit service prohibited by the SEC. A request submitted between scheduled meetings of the Audit Committee should state the reason that approval is being sought prior to the next regularly scheduled meeting of the Audit Committee.
Between regularly scheduled meetings of the Audit Committee, the Committee Chairman or Audit Committee Financial Expert shall have the authority to pre-approve Covered Non-Audit Engagements, provided that fees associated with such engagement do not exceed $10,000 and the services to be provided do not involve provision of any of the following services by the Independent Auditor: (i) bookkeeping or other services related to the accounting records or financial statements of the audit client; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions, or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions; (vii) human resources; (vii) broker dealer, investment advisor or investment banking services; (ix) legal services; or (x) expert services unrelated to the audit.
Fee levels for all Covered Services to be provided by the Independent Auditor and pre-approved under this Policy will be established annually by the Audit Committee. Any increase in pre-approved fee levels will require specific pre-approval by the Audit Committee.
The terms and fees of the annual Audit services engagement for the Trust are subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms, conditions or fees resulting from changes in audit scope, Trust structure or other matters.
(ii) 100% of the services described in each of Items 4(b) through (d) were approved by the Trusts audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) The percentage of hours expended on the principal accountants engagement to audit the Trusts financial statements for the most recent fiscal year attributable to work performed by persons other than the principal accountants full-time, permanent employees was 0%.
(g) The aggregate non-audit fees billed by the Trusts accountant for services rendered to the Trust, the Advisor or any entity controlling, controlled by, or under common control with the Advisor that provides ongoing services to the Trust (except for any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor) for the fiscal year ended December 31, 2011 and fiscal year ended December 31, 2012 are as follows:
2012: $307,000
2011: $324,200
(h) Not applicable.
Item 5. | Audit Committee of Listed Registrants. |
(a) The Trust has a separately designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. The audit committee of the Trust is comprised of: Frederick S. Hammer, Asuka Nakahara, Richard L. Sutton and John R. Bartholdson.
(b) Not applicable.
Item 6. | Investments. |
(a) The schedule of investments is included as part of the report to shareholders filed under Item 1 of this form.
(b) Not applicable.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
The Trust has delegated the voting of proxies relating to its voting securities to the Advisor, pursuant to the proxy voting procedures of the Advisor. The Advisors Proxy Voting Policies and Procedures are included as an exhibit hereto.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
(a) | As of February 25, 2013: |
T. Ritson Ferguson
Chief Executive Officer and Co-Chief Investment Officer, CBRE Clarion Securities LLC since 1991
Steven D. Burton
Managing Director and Co-Chief Investment Officer, CBRE Clarion Securities LLC since 1995
Joseph P. Smith
Managing Director and Co-Chief Investment Officer, CBRE Clarion Securities LLC since 1997
Other Accounts Managed (as of December 31, 2012). The Portfolio Managers are also collectively responsible for the day-to-day management of the Advisors other accounts, as indicated by the following table.
Name of Portfolio |
Type of Accounts |
Number of Accounts Managed |
Total Assets in the Accounts |
Managed with Advisory Fee Based on Performance |
Managed with Advisory Fee Based on Performance |
|||||||||||||||
T. Ritson Ferguson |
Registered Investment Companies | 14 | $ | 11,862,808,472.67 | 0 | $ | 0 | |||||||||||||
Other Pooled Investment Vehicles | 38 | $ | 5,561,416,503.26 | 4 | $ | 280,624,869.00 | ||||||||||||||
Other Accounts | 71 | $ | 6,222,787,922.32 | 7 | $ | 2,155,053,662.41 | ||||||||||||||
Steven D. Burton |
Registered Investment Companies | 12 | $ | 10,053,606,661.84 | 0 | $ | 0 | |||||||||||||
Other Pooled Investment Vehicles | 37 | $ | 5,400,378,393.65 | 4 | $ | 280,624,869.00 | ||||||||||||||
Other Accounts | 54 | $ | 5,532,093,200.51 | 7 | $ | 2,155,053,662.41 | ||||||||||||||
Joseph P. Smith |
Registered Investment Companies | 14 | $ | 11,862,808,472.67 | 0 | $ | 0 | |||||||||||||
Other Pooled Investment Vehicles | 36 | $ | 5,490,621,715.52 | 4 | $ | 280,624,869.00 | ||||||||||||||
Other Accounts |
70 | $ | 5,423,036,617.91 | 7 | $ | 2,155,053,662.41 |
(b) Not applicable.
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. |
Not applicable.
Item 11. | Controls and Procedures. |
(a) The Trusts principal executive officer and principal financial officer have evaluated the Trusts disclosure controls and procedures within 90 days of this filing and have concluded that the Trusts disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the Trust in this Form N-CSR was recorded, processed, summarized, and reported timely.
(b) The Trusts principal executive officer and principal financial officer are aware of no changes in the Trusts internal control over financial reporting that occurred during the Trusts second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trusts internal control over financial reporting.
Item 12. | Exhibits. |
(a)(1) Fund Officer Code of Ethics.
(a)(2) Certification of chief executive officer and chief financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(b) Certification of chief executive officer and chief financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(c) Proxy Voting Policies and Procedures.
(d) Notices to Trusts common shareholders in accordance with Investment Company Act Section 19(a) and Rule 19a-1.(1)
(1) | The Trust has received exemptive relief from the Securities and Exchange Commission permitting it to make periodic distributions of long-term capital gains with respect to its outstanding common stock as frequently as twelve times each year. This relief is conditioned, in part, on an undertaking by the Trust to make the disclosures to the holders of the Trusts common shares, in addition to the information required by Section 19(a) of the Investment Company Act and Rule 19a-1 thereunder. The Trust is likewise obligated to file with the Commission the information contained in any such notice to shareholders and, in that regard, has attached hereto copies of each such notice made during the period. |
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) CBRE Clarion Global Real Estate Income Fund |
By: | /s/ T. Ritson Ferguson | |
Name: | T. Ritson Ferguson | |
Title: | President and Chief Executive Officer | |
Date: | March 6, 2013 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ T. Ritson Ferguson | |
Name: | T. Ritson Ferguson | |
Title: | President and Chief Executive Officer | |
Date: | March 6, 2013 |
By: | /s/ Jonathan A. Blome | |
Name: | Jonathan A. Blome | |
Title: | Chief Financial Officer | |
Date: | March 6, 2013 |