The following is a summary of inputs used as of December 31, 2019. For information on the Trusts policy
regarding the valuation of investments, please refer to the Security Valuation section of Note 2 in the accompanying Notes to Financial Statements.
Statement of Assets and Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2019
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Investments, at value (cost $1,099,916,493)
|
|
|
|
|
|
|
$1,207,544,665
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
1,644,030
|
|
|
|
|
Receivable for investment securities sold
|
|
|
|
|
|
|
21,525,719
|
|
|
|
|
Dividends and interest receivable
|
|
|
|
|
|
|
5,669,911
|
|
|
|
|
Dividend withholding reclaims receivable
|
|
|
|
|
|
|
294,729
|
|
|
|
|
Other assets
|
|
|
|
|
|
|
109,246
|
|
|
|
|
Total Assets
|
|
|
|
|
|
|
1,236,788,300
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Line of credit payable
|
|
|
|
|
|
|
121,019,500
|
|
|
|
|
Payable for investment securities purchased
|
|
|
|
|
|
|
81,151,820
|
|
|
|
|
Management fees payable
|
|
|
|
|
|
|
837,755
|
|
|
|
|
Line of credit interest payable
|
|
|
|
|
|
|
279,755
|
|
|
|
|
Dividend and distributions payable
|
|
|
|
|
|
|
171,633
|
|
|
|
|
Unrealized depreciation on spot contracts
|
|
|
|
|
|
|
16,728
|
|
|
|
|
Accrued expenses
|
|
|
|
|
|
|
421,507
|
|
|
|
|
Total Liabilities
|
|
|
|
|
|
|
203,898,698
|
|
|
|
|
Net Assets
|
|
|
|
|
|
|
$1,032,889,602
|
|
|
|
|
Composition of Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
$0.001 par value per share;
unlimited number of shares authorized,
116,590,494 shares issued and
outstanding
|
|
|
|
|
|
|
$116,590
|
|
|
|
|
Additional paid-in capital
|
|
|
|
|
|
|
985,679,167
|
|
|
|
|
Distributable earnings / (accumulated loss)
|
|
|
|
|
|
|
47,093,845
|
|
|
|
|
Net Assets
|
|
|
|
|
|
|
$1,032,889,602
|
|
|
|
|
Net Asset Value
(based on 116,590,494 shares
outstanding)
|
|
|
|
|
|
|
$8.86
|
|
See notes to financial statements.
|
|
|
10
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Statement of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Year Ended
December 31, 2019
|
|
|
|
|
Investment Income
|
|
|
|
|
|
|
|
|
|
|
|
Dividends (net of foreign withholding taxes of $1,436,886)
|
|
|
|
|
|
|
$34,707,040
|
|
|
|
|
Other Income
|
|
|
|
|
|
|
2,961
|
|
|
|
|
Interest
|
|
|
|
|
|
|
739
|
|
|
|
|
Total Investment Income
|
|
|
|
|
|
|
34,710,740
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Management fees
|
|
|
|
|
|
|
9,717,156
|
|
|
|
|
Interest expense on line of credit
|
|
|
|
|
|
|
4,093,873
|
|
|
|
|
Printing and mailing fees
|
|
|
|
|
|
|
471,988
|
|
|
|
|
Trustees fees and expenses
|
|
|
|
|
|
|
288,988
|
|
|
|
|
Administration fees
|
|
|
|
|
|
|
238,640
|
|
|
|
|
Custodian fees
|
|
|
|
|
|
|
195,897
|
|
|
|
|
Transfer agent fees
|
|
|
|
|
|
|
168,871
|
|
|
|
|
Legal fees
|
|
|
|
|
|
|
158,091
|
|
|
|
|
Insurance fees
|
|
|
|
|
|
|
152,902
|
|
|
|
|
NYSE listing fee
|
|
|
|
|
|
|
119,510
|
|
|
|
|
Audit and tax fees
|
|
|
|
|
|
|
78,766
|
|
|
|
|
Miscellaneous expenses
|
|
|
|
|
|
|
90,475
|
|
|
|
|
Total Expenses
|
|
|
|
|
|
|
15,775,157
|
|
|
|
|
Net Investment Income
|
|
|
|
|
|
|
18,935,583
|
|
|
|
|
Net Realized and Unrealized Gain (Loss) on Investments, Written Options, and Foreign Currency
Transactions
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain (loss) on:
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
26,812,459
|
|
|
|
|
Written options
|
|
|
|
|
|
|
1,510,234
|
|
|
|
|
Foreign currency transactions
|
|
|
|
|
|
|
(138,936
|
)
|
|
|
|
Total Net Realized Gain
|
|
|
|
|
|
|
28,183,757
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on:
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
|
|
|
|
175,086,398
|
|
|
|
|
Foreign currency denominated assets and liabilities
|
|
|
|
|
|
|
2,588
|
|
|
|
|
Total Net Change in Unrealized Appreciation
|
|
|
|
|
|
|
175,088,986
|
|
|
|
|
Net Realized and Unrealized Gain on Investments, Written
Options, and Foreign Currency Transactions
|
|
|
|
|
|
|
203,272,743
|
|
|
|
|
Net Increase in Net Assets Resulting from
Operations
|
|
|
|
|
|
|
$222,208,326
|
|
See notes to financial statements.
Statements of Changes in Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Year Ended
December 31, 2019
|
|
|
|
|
|
For the
Year Ended
December 31, 2018
|
|
|
|
|
|
|
Change in Net Assets Resulting from Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
$18,935,583
|
|
|
|
|
|
|
|
$22,378,295
|
|
|
|
|
|
|
Net realized gain (loss) on investments, written options, and foreign currency transactions
|
|
|
|
|
|
|
28,183,757
|
|
|
|
|
|
|
|
(36,176,260
|
)
|
|
|
|
|
|
Net change in unrealized appreciation (depreciation) on
investments, and foreign currency denominated assets and liabilities
|
|
|
|
|
|
|
175,088,986
|
|
|
|
|
|
|
|
(84,044,215
|
)
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from
operations
|
|
|
|
|
|
|
222,208,326
|
|
|
|
|
|
|
|
(97,842,180
|
)
|
|
|
|
|
|
Distributions on Common Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributions from distributable earnings
|
|
|
|
|
|
|
(34,394,639
|
)
|
|
|
|
|
|
|
(19,584,966
|
)
|
|
|
|
|
|
Distribution of return of capital
|
|
|
|
|
|
|
(35,559,657
|
)
|
|
|
|
|
|
|
(50,369,330
|
)
|
|
|
|
|
|
Total distributions on Common Shares
|
|
|
|
|
|
|
(69,954,296
|
)
|
|
|
|
|
|
|
(69,954,296
|
)
|
|
|
|
|
|
Net Increase (Decrease) in Net Assets
|
|
|
|
|
|
|
152,254,030
|
|
|
|
|
|
|
|
(167,796,476
|
)
|
|
|
|
|
|
Net Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning of year
|
|
|
|
|
|
|
880,635,572
|
|
|
|
|
|
|
|
1,048,432,048
|
|
|
|
|
|
|
End of year
|
|
|
|
|
|
|
$1,032,889,602
|
|
|
|
|
|
|
|
$880,635,572
|
|
See notes to financial statements.
|
|
|
12
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Statement of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Year Ended
December 31, 2019
|
|
|
|
|
Cash Flows from Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase in Net Assets Resulting from Operations
|
|
|
|
|
|
|
$222,208,326
|
|
|
|
|
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
|
|
|
|
|
|
|
(175,086,398
|
)
|
|
|
|
Net realized gain on investments
|
|
|
|
|
|
|
(26,812,459
|
)
|
|
|
|
Net realized gain on written options
|
|
|
|
|
|
|
(1,510,234
|
)
|
|
|
|
Cost of securities purchased
|
|
|
|
|
|
|
(567,937,385
|
)
|
|
|
|
Proceeds from sale of securities
|
|
|
|
|
|
|
521,045,828
|
|
|
|
|
Premiums received on written options
|
|
|
|
|
|
|
2,079,160
|
|
|
|
|
Payments to close written options
|
|
|
|
|
|
|
(37,504
|
)
|
|
|
|
Increase in receivable for investment securities sold
|
|
|
|
|
|
|
(21,447,275
|
)
|
|
|
|
Increase in dividends and interest receivable
|
|
|
|
|
|
|
(18,334
|
)
|
|
|
|
Increase in dividend withholding reclaims receivable
|
|
|
|
|
|
|
(197,448
|
)
|
|
|
|
Decrease in unrealized appreciation on spot contracts
|
|
|
|
|
|
|
32
|
|
|
|
|
Decrease in other assets
|
|
|
|
|
|
|
130
|
|
|
|
|
Increase in payable for investment securities purchased
|
|
|
|
|
|
|
72,025,798
|
|
|
|
|
Increase in management fees payable
|
|
|
|
|
|
|
136,116
|
|
|
|
|
Increase in line of credit interest payable
|
|
|
|
|
|
|
100,797
|
|
|
|
|
Increase in unrealized depreciation on spot contracts
|
|
|
|
|
|
|
16,728
|
|
|
|
|
Decrease in accrued expenses
|
|
|
|
|
|
|
(47,953
|
)
|
|
|
|
Net Cash Provided by Operating Activities
|
|
|
|
|
|
|
24,517,925
|
|
|
|
|
Cash Flows From Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
Cash distributions paid on common shares
|
|
|
|
|
|
|
(69,960,166
|
)
|
|
|
|
Proceeds from borrowing on line of credit
|
|
|
|
|
|
|
343,124,000
|
|
|
|
|
Payments on line of credit borrowings
|
|
|
|
|
|
|
(296,215,300
|
)
|
|
|
|
Net Cash Used in Financing Activities
|
|
|
|
|
|
|
(23,051,466
|
)
|
|
|
|
Net Increase in cash
|
|
|
|
|
|
|
1,466,459
|
|
|
|
|
Cash and Cash Equivalents at Beginning of Year
|
|
|
|
|
|
|
177,571
|
|
|
|
|
Cash and Cash Equivalents at End of Year
|
|
|
|
|
|
|
$1,644,030
|
|
|
|
|
Supplemental disclosure
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid on line of credit borrowings
|
|
|
|
|
|
|
$3,993,076
|
|
See notes to financial statements.
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share operating performance for a
share outstanding throughout the year
|
|
|
|
|
For the
Year Ended
December 31,
2019
|
|
|
|
|
|
For the
Year Ended
December 31,
2018
|
|
|
|
|
|
For the
Year Ended
December 31,
2017
|
|
|
|
|
|
For the
Year Ended
December 31,
2016
|
|
|
|
|
|
For the
Year Ended
December 31,
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, beginning of year
|
|
|
|
|
|
|
$7.55
|
|
|
|
|
|
|
|
$8.99
|
|
|
|
|
|
|
|
$8.65
|
|
|
|
|
|
|
|
$9.04
|
|
|
|
|
|
|
|
$10.16
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from investment operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income (1)
|
|
|
|
|
|
|
0.16
|
|
|
|
|
|
|
|
0.19
|
|
|
|
|
|
|
|
0.27
|
|
|
|
|
|
|
|
0.26
|
|
|
|
|
|
|
|
0.27
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized and unrealized gain (loss) on investments and foreign
currency transactions
|
|
|
|
|
|
|
1.75
|
|
|
|
|
|
|
|
(1.03
|
)
|
|
|
|
|
|
|
0.67
|
|
|
|
|
|
|
|
(0.05
|
)
|
|
|
|
|
|
|
(0.82
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total from investment operations
|
|
|
|
|
|
|
1.91
|
|
|
|
|
|
|
|
(0.84
|
)
|
|
|
|
|
|
|
0.94
|
|
|
|
|
|
|
|
0.21
|
|
|
|
|
|
|
|
(0.55
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Distributions on Common Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
(0.30
|
)
|
|
|
|
|
|
|
(0.17
|
)
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
(0.34
|
)
|
|
|
|
|
|
|
(0.57
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Return of capital
|
|
|
|
|
|
|
(0.30
|
)
|
|
|
|
|
|
|
(0.43
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.26
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total distributions to Common Shareholders
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
(0.60
|
)
|
|
|
|
|
|
|
(0.57
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value, end of year
|
|
|
|
|
|
|
$8.86
|
|
|
|
|
|
|
|
$7.55
|
|
|
|
|
|
|
|
$8.99
|
|
|
|
|
|
|
|
$8.65
|
|
|
|
|
|
|
|
$9.04
|
|
|
|
|
|
|
|
|
|
|
|
|
Market value, end of year
|
|
|
|
|
|
|
$8.02
|
|
|
|
|
|
|
|
$6.16
|
|
|
|
|
|
|
|
$7.92
|
|
|
|
|
|
|
|
$7.30
|
|
|
|
|
|
|
|
$7.64
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment return
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net asset value
|
|
|
|
|
|
|
25.74
|
%
|
|
|
|
|
|
|
(9.75
|
)%
|
|
|
|
|
|
|
11.28
|
%
|
|
|
|
|
|
|
2.17
|
%
|
|
|
|
|
|
|
(5.57
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
Market value
|
|
|
|
|
|
|
40.87
|
%
|
|
|
|
|
|
|
(15.52
|
)%
|
|
|
|
|
|
|
17.22
|
%
|
|
|
|
|
|
|
3.17
|
%
|
|
|
|
|
|
|
(8.89
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
Ratios and supplemental data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets, applicable to Common Shares, end of year (thousands)
|
|
|
|
|
|
|
$1,032,890
|
|
|
|
|
|
|
|
$880,636
|
|
|
|
|
|
|
|
$1,048,432
|
|
|
|
|
|
|
|
$1,008,918
|
|
|
|
|
|
|
|
$1,053,863
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios to average net assets applicable to Common Shares of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net expenses
|
|
|
|
|
|
|
1.57
|
%
|
|
|
|
|
|
|
1.54
|
%
|
|
|
|
|
|
|
1.43
|
%
|
|
|
|
|
|
|
1.18
|
%
|
|
|
|
|
|
|
1.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net expenses, excluding interest on line of credit
|
|
|
|
|
|
|
1.16
|
%
|
|
|
|
|
|
|
1.17
|
%
|
|
|
|
|
|
|
1.16
|
%
|
|
|
|
|
|
|
1.09
|
%
|
|
|
|
|
|
|
1.10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
|
|
|
|
|
|
|
1.89
|
%
|
|
|
|
|
|
|
2.30
|
%
|
|
|
|
|
|
|
3.02
|
%
|
|
|
|
|
|
|
2.86
|
%
|
|
|
|
|
|
|
2.79
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio turnover rate
|
|
|
|
|
|
|
44.97
|
%
|
|
|
|
|
|
|
70.38
|
%
|
|
|
|
|
|
|
124.07
|
%
|
|
|
|
|
|
|
67.36
|
%
|
|
|
|
|
|
|
76.54
|
%
|
|
|
|
(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.
|
See notes to financial statements.
|
|
|
14
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Notes to Financial Statements
CBRE Clarion Global Real Estate Income Fund (the Trust) is a diversified, closed-end management investment company
that was organized as a Delaware statutory trust on November 6, 2003 and registered with the Securities and Exchange Commission (SEC) under the Investment Company Act of 1940, as amended. The Trust is an investment company and
accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services-Investment Companies. CBRE Clarion Securities
LLC (the Advisor) is the Trusts investment advisor. The Advisor is a majority-owned subsidiary of CBRE Group, Inc. and is partially owned by its senior management team. The Trust commenced operations on February 18, 2004.
2.
|
Significant Accounting Policies
|
The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by the Trust.
Securities Valuation The net asset value of the common shares of the Trust will be computed based upon the value of the Trusts
portfolio securities and other assets. The Trust calculates net asset value per common share by subtracting the Trusts liabilities (including accrued expenses, dividends payable and any borrowings of the Trust) and the liquidation value of any
outstanding preferred shares from the Trusts total assets (the value of the securities the Trust holds, plus cash and/or other assets, including dividends accrued but not yet received) and dividing the result by the total number of common
shares of the Trust outstanding. Net asset value per common share will be determined as of the close of the regular trading session (usually 4:00 p.m., EST) on the New York Stock Exchange (NYSE) on each business day on which the
NYSE is open for trading.
For purposes of determining the net asset value of the Trust, readily marketable portfolio assets (including common stock, preferred stock,
and options) traded principally on an exchange, or on a similar regulated market reporting contemporaneous transaction prices, are valued, except as indicated below, at the last sale price for such assets on such principal markets on the business
day on which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and asked prices on such day. Foreign securities are valued based upon quotations from the primary market in
which they are traded and are translated from the local currency into U.S. dollars using current exchange rates. During the period that a forward foreign currency contract is open, changes in the value of the contract are recognized as
unrealized appreciation or depreciation by marking to market such contract on a daily basis to reflect the market value of the contract at the end of each days trading. Securities and other assets for which market quotations are not readily
available or for which the above valuation procedures are deemed not to reflect fair value are valued in a manner that is intended to reflect their fair value as determined in accordance with procedures approved by the Trusts Board of Trustees
(the Board).
Short-term securities which mature in more than 60 days are valued at current market quotations. Short-term securities, which mature in
60 days or less, are valued at amortized cost, which approximates market value.
U.S. GAAP provides guidance on fair value measurements. In accordance with the
standard, fair value is defined as the price that the Trust would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the
most advantageous market for the investment or liability. It establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Trusts investments, and
requires additional disclosure about fair value.
For Level 1 inputs, the Trust uses unadjusted quoted prices in active markets for assets or liabilities with
sufficient frequency and volume to provide pricing information as the most reliable evidence of fair value.
The Trusts Level 2 valuation techniques
include inputs other than quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly. Level 2 observable inputs may include quoted prices for similar assets and liabilities in active markets
or quoted prices for identical or similar assets or liabilities in markets that are not active in which there are few transactions, the prices are not current, or price quotations vary substantially over time or among market participants. Inputs
that are observable for the asset or liability in Level 2 include such factors as interest rates, yield curves, prepayment speeds, credit risk, and default rates for similar liabilities.
Notes to Financial Statements continued
For Level 3 valuation techniques, the Trust uses unobservable inputs that reflect assumptions
market participants would be expected to use in pricing the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available and are developed based on the best information available under
the circumstances. In developing unobservable inputs, market participant assumptions are used if they are reasonably available without undue cost and effort.
The
primary third party pricing vendor for the Trusts listed preferred stock investments is FT Interactive Data (IDC). When available, the Trust will obtain a closing exchange price to value the preferred stock investments and, in such
instances, the investment will be classified as Level 1 since an unadjusted quoted price was utilized. When a closing price is not available for the listed preferred stock investments, IDC will produce an evaluated mean price (midpoint between
the bid and the ask evaluation) and such investments will be classified as Level 2 since other observable inputs were used in the valuation. Factors used in the IDC evaluation include trading activity, the presence of a two-sided market, and other relevant market data.
Pursuant to the Trusts fair value procedures noted previously, equity
securities (including exchange traded securities and open-end regulated investment companies) and exchange traded derivatives (i.e. futures contracts and options) are generally categorized as Level 1
securities in the fair value hierarchy. Fixed income securities, non-exchange traded derivatives and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy.
Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These
valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.
For the year ended December 31, 2019, there have
been no significant changes to the Trusts fair valuation methodology.
Foreign Currency Translation The books and records
of the Trust are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i)
|
market value of investment securities, other assets and liabilities at the current rates of exchange;
|
(ii)
|
purchases and sales of investment securities, income and expenses at the rate of exchange prevailing on
the respective dates of such transactions.
|
Although the net assets of the Trust are presented at the foreign exchange rates and market values at
the close of each fiscal year, the Trust does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term securities
held at the end of the fiscal year. Similarly, the Trust does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the fiscal year.
Accordingly, realized foreign currency gains or losses will be included in the reported net realized gains or losses on investment transactions.
Net realized gains
or losses on foreign currency transactions represent net foreign exchange gains or losses from the holding of foreign currencies, currency gains or losses realized between the trade date and settlement date on securities transactions, and the
difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Trusts books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains or losses from valuing
foreign currency denominated assets or liabilities (other than investments) at year end exchange rates are reflected as a component of net unrealized appreciation or depreciation on investments and foreign currencies.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other
factors, the possibility of political or economic instability, or the level of governmental supervision and regulation of foreign securities markets.
Forward
Foreign Currency Contracts The Trust enters into forward foreign currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings, to hedge certain
Trust purchase and sales commitments denominated in foreign currencies and for investment purposes. A forward foreign currency contract is a commitment to purchase or sell a foreign currency on a future date at a negotiated forward rate. The gain or
loss arising from the difference between the original contracts and the closing of such contracts would be included in net realized gain or loss on foreign currency transactions.
Fluctuations in the value of open forward foreign currency contracts are recorded for financial reporting purposes as unrealized appreciation and depreciation by the
Trust.
|
|
|
16
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Notes to Financial Statements continued
The Trusts custodian will place and maintain cash not available for investment or other
liquid assets in a separate account of the Trust having a value at least equal to the aggregate amount of the Trusts commitments under forward foreign currency contracts entered into with respect to position hedges.
Risks may arise from the potential inability of a counterparty to meet the terms of a contract and from unanticipated movements in the value of a foreign currency
relative to the U.S. dollar. The face or contract amount, in U.S. dollars, reflects the total exposure the Trust has in that particular currency contract. As of December 31, 2019, the Trust did not hold any forward foreign currency
contracts.
Options The Trust may purchase or sell (write) options on securities and securities indices which are listed on a national
securities exchange or in the over-the-counter (OTC) market as a means of achieving additional return or of hedging the value of the Trusts portfolio.
An option on a security is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the
case of a put) the writer of the option the security underlying the option at a specified exercise or strike price. The writer of an option on a security has an obligation upon exercise of the option to deliver the underlying security
upon payment of the exercise price (in the case of a call) or to pay the exercise price upon delivery of the underlying security (in the case of a put).
There are
several risks associated with transactions in options on securities. As the writer of a covered call option, the Trust forgoes, during the options life, the opportunity to profit from increases in the market value of the security covering the
call option above the sum of the premium and the strike price of the call but has retained the risk of loss should the price of the underlying security decline. The writer of an option has no control over the time when it may be required to fulfill
its obligation as writer of the option. Once an option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security at the
exercise price. As of December 31, 2019, the Trust did not hold any options contracts.
Securities Transactions and Investment
Income Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the basis of identified cost. Dividend income is recorded on the ex-dividend date. Distributions received from investments in REITs are recorded as dividend income on ex-dividend date, subject to reclassification upon notice of the
character of such distributions by the issuer. The portion of dividend attributable to the return of capital is recorded against the cost basis of the security. Withholding taxes on foreign dividends are recorded net of reclaimable amounts, at the
time the related income is earned. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Interest income, including accretion of original
issue discount, where applicable, and accretion of discount on short-term investments, is recorded on the accrual basis.
Dividends and Distributions to
Shareholders Dividends from net investment income, if any, are declared and paid on a monthly basis. Income dividends and capital gain distributions to common shareholders are recorded on the ex-dividend date. To the extent the Trusts net realized capital gains, if any, can be offset by capital loss carryforwards, it is the policy of the Trust not to distribute such gains.
On August 5, 2008, the Trust acting in accordance with an exemptive order received from the SEC and with approval of the Board, adopted a managed distribution policy
under which the Trust intends to make regular monthly cash distributions to common shareholders, stated in terms of a fixed amount per common share. This managed distribution policy permits the Trust to include long-term capital gains in its
distribution as frequently as twelve times a year. In practice, the Board views this policy as a potential means of further supporting the market price of the Trusts shares through the payment of a steady and predictable level of cash
distributions to shareholders.
The current monthly distribution rate is $0.05 per share. The Trust continues to evaluate its monthly distribution policy in light of
ongoing economic and market conditions and may change the amount of the monthly distributions in the future.
Use of Estimates The
preparation of financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of
expenses during the reporting year. Actual results could differ from those estimates.
Notes to Financial Statements continued
3.
|
Derivative Instruments
|
The effect of derivative instruments on the Trusts Statement of Operations for the year ended December 31, 2019 was as follows:
|
|
|
Derivatives not accounted for as hedging instruments
|
|
Realized gain (loss)
|
|
|
Equity Risk
|
|
|
|
|
Written options
|
|
$1,510,234
|
For the year ended December 31, 2019, the average month-end notional value of written options
was $31,330,433.
4. Concentration of Risk
Under normal market conditions, the Trusts investments will be concentrated in income-producing common equity
securities, preferred securities, convertible securities and non-convertible debt securities issued by companies deriving the majority of their revenue from the ownership, construction, financing, management
and/or sale of commercial, industrial, and/or residential real estate. Values of the securities of such companies may fluctuate due to economic, legal, cultural, geopolitical or technological developments affecting various global real estate
industries.
5.
|
Investment Management Agreement and Other Agreements
|
Pursuant to an investment management agreement between the Advisor and the Trust, the Advisor is responsible for the daily management of the Trusts portfolio of
investments, which includes buying and selling securities for the Trust, as well as investment research. The Trust pays for investment advisory services and facilities through a fee payable monthly in arrears at an annual rate equal to 0.85% of the
average daily value of the Trusts managed assets plus certain direct and allocated expenses of the Advisor incurred on the Trusts behalf. During the year ended December 31, 2019, the Trust incurred management fees of $9,717,156, of
which $837,755 is payable as of year-end.
The Trust has multiple service agreements with the Bank of New York Mellon
(BNYM). Under the servicing agreements, BNYM will perform custodial, fund accounting, and certain administrative services for the Trust. As custodian, BNYM is responsible for the custody of the Trusts assets. As administrator, BNYM
is responsible for maintaining the books and records of the Trusts securities and cash.
Computershare is the Trusts transfer agent and as such is
responsible for performing transfer agency services for the Trust.
For the year ended December 31, 2019, there were purchases and sales transactions (excluding short-term securities) of $572,309,233 and $513,494,918, respectively.
These purchases and sales transaction amounts differ from the amounts disclosed on the Statement of Cash Flows primarily due to the re-characterization of dividends from ordinary income to return of capital
and capital gain.
7. Federal Income Taxes
The Trust intends to elect to be, and qualify for treatment as, a regulated investment company under Subchapter M
of the Internal Revenue Code of 1986, as amended (the Code). A regulated investment company generally pays no federal income tax on the income and gains that it distributes. The Trust intends to meet the calendar year distribution
requirements imposed by the Code to avoid the imposition of a 4% excise tax.
The Trust is required to evaluate tax positions taken or expected to be taken in the
course of preparing the Trusts tax returns to determine whether the tax positions are more-likely-than-not of being sustained by the applicable tax authority. Income tax and related interest
and penalties would be recognized by the Trust as tax expense in the Statement of Operations if the tax positions were deemed to not meet the more-likely-than-not threshold. For the year ended
December 31, 2019, the Trust did not incur any income tax, interest, or penalties. Management has analyzed the Trusts tax positions taken on federal, state and local income tax returns for all open tax years (since inception) and has
concluded that no provisions for federal, state and local income tax are required in the Trusts financial statements.
|
|
|
18
|
|
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
|
Notes to Financial Statements continued
The Trust distinguishes between dividends on a tax basis and on a financial reporting basis and
only distributions in excess of tax basis earnings and profits are reported in the financial statements as a tax return of capital. Differences in the recognition or classification of income between the financial statements and tax earnings and
profits which result in temporary over-distributions for financial statement purposes are classified as distributable earnings or accumulated losses in the composition of net assets on the Statement of Assets and Liabilities.
In order to present paid-in capital in excess of par and total distributable earnings /(Accumulated Loss) on the Statement of
Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to additional paid-in capital, and total distributable earnings. For the year ended December 31,
2019, the adjustments were to increase additional paid-in capital by $308,075 and decrease distributable earnings by $308,075 due to the difference in the treatment for book and tax purposes of passive foreign
investment company(PFIC) investments and recognition of foreign currency gain(loss) as ordinary income(loss) and distribution reclasses. Results of operations and net assets were not affected by these reclassifications.
At December 31, 2019, the Trust had capital loss carryforwards which will reduce the Trusts taxable income arising from future net realized gain on
investments, if any, to the extent permitted by the code and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Trust of any liability for federal income tax.
The Regulated Investment Company Modernization Act of 2010 (the Act) eliminated the eight-year carryover period for capital losses that arise in taxable years
beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net
capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryovers will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior
law. At December 31, 2019, the Trust had no expiring capital losses. The Trust had short-term capital losses of $21,624,969, with no expiration and long-term capital losses of $20,913,185, with no expiration.
Certain capital and qualified late year losses incurred after October 31 and within the current taxable year, are deemed to arise on the first business day of the
Trusts following taxable year. The Trust incurred and will defer qualified late ordinary year losses of $2,621,093 during 2019. There were no post-October losses incurred that will be deferred.
For the year ended December 31, 2019, the tax character of distributions paid, as reflected in the Statements of Changes in Net Assets, was $34,394,639 of ordinary
income (reflected in the Statement of Changes in Net Assets as distributions from distributable earnings) and $35,559,657 of return of capital, respectively. For the year ended December 31, 2018, the tax character of distributions paid, as
reflected in the Statements of Changes in Net Assets, was $19,584,966 of ordinary income and $50,369,330 of return of capital, respectively.
Information on the tax
components of net assets as of December 31, 2019 is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
Investments for
Tax Purposes
|
|
Gross Tax
Unrealized
Appreciation
|
|
Gross Tax
Unrealized
Depreciation
|
|
Net Tax
Unrealized
Depreciation
on Investments
|
|
Net Tax
Unrealized
Appreciation
on Foreign
Currency
|
|
Qualified Late
Year
Ordinary Losses
|
|
Qualified Post-
October Capital
Deferral
|
|
Undistributed
Long-Term
Capital Gains/
(Accumulated
Capital Loss)
|
$1,115,295,931
|
|
$115,336,116
|
|
$(23,087,382)
|
|
$92,248,734
|
|
$4,621
|
|
$2,621,093
|
|
$0
|
|
$(42,538,417)
|
The Trust has access to a secured line of credit up to $300,000,000 from BNYM for borrowing purposes. Borrowings under this arrangement bear interest at the Federal funds
rate plus 75 basis points. At December 31, 2019, there were borrowings in the amount of $121,019,500 on the Trusts line of credit.
The average daily
amount of borrowings during the year ended December 31, 2019 was $139,593,877 with an average interest rate of 2.91%. The maximum amount outstanding for the year ended December 31, 2019, was $179,104,000. The Trust had borrowings under the
line of credit for all 365 days during 2019.
Notes to Financial Statements concluded
During 2004, the Trust issued 101,000,000 shares of common stock at $15.00. In connection with the Trusts Dividend Reinvestment Plan (DRIP), the
Trust issued no common shares for the year ended December 31, 2019 and the year ended December 31, 2018, respectively. At December 31, 2019, the Trust had outstanding common shares of 116,590,494 with a par value of $0.001 per share.
The Advisor owned none of the common shares outstanding as of December 31, 2019.
At December 31, 2019, the Trust had no shares of auction rate preferred
securities outstanding.
The Trust enters into contracts that contain a variety of indemnifications. The Trusts exposure under these arrangements is unknown. However, the Trust has not had
prior claims or losses or current claims or losses pursuant to these contracts.
Events or transactions that occur after the balance sheet date but before the financial statements are issued are categorized as recognized or non-recognized for financial statement purposes. Since December 31, 2019, the Trust paid a dividend on January 31, 2020 of $0.05 per share for the month of January 2020. No other notable events have
occurred between year-end and the issuance of these financial statements.
|
|
|
20
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CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
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Report of Independent
Registered Public Accounting Firm
To the Shareholders and Board of Trustees
CBRE Clarion Global Real Estate Income Fund:
Opinion on the Financial Statements
We have audited the accompanying
statement of assets and liabilities of CBRE Clarion Global Real Estate Income Fund (the Trust), including the portfolio of investments, as of December 31, 2019, the related statements of operations and cash flows for the year then ended, the
statements of changes in net assets for each of the years in the two-year period then ended, and the related notes (collectively, the financial statements) and the financial highlights for each of the years in
the five-year period then ended. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Trust as of December 31, 2019,
the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the
years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis
for Opinion
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 are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect
to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We
conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that
respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Such procedures also included confirmation of securities owned as of
December 31, 2019, by correspondence with the custodian and brokers, or other appropriate procedures where replies were not received. Our audits also included evaluating the accounting principles used and significant estimates made by
management, as well as evaluating the overall presentation of the financial statements and financial highlights. We believe that our audits provide a reasonable basis for our opinion.
We have served as the Trusts auditor since 2014.
Philadelphia, Pennsylvania
February 25, 2020
Supplemental Information (unaudited)
Change to Portfolio Management Team
Kenneth S. Weinberg was added to the Funds portfolio management team in August 2019. Mr. Weinberg is a Principal and Senior Portfolio Manager of the Advisor.
Mr. Weinberg joined CBRE Clarion Securities predecessor firm in 2004. Prior to that, Mr. Weinberg worked in various management and analyst positions in the real estate industry including positions with Legg Mason Wood Walker, Inc.
and Prudential Real Estate Investors. Mr. Weinberg has over 28 years of real estate investment management experience.
Federal Income
Tax Information
Qualified dividend income of as much as $10,939,504 was received by the Trust through December 31, 2019. 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.
For corporate
shareholders, 1.09% of ordinary income distributions for the year ended December 31, 2019 qualified for the corporate dividends-received deduction.
In February
2020, 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 2019.
Corporate Governance
The Fund submitted its
Annual CEO certification for 2019 to the New York Stock Exchange (NYSE) on October 15, 2019 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-PORT
filed by the Fund over the past fiscal year. The Funds Form N-CSR and Form N-PORT filings are available on the Commissions website at www.sec.gov.
Trustees
The Trustees of the CBRE Clarion Global Real Estate Income Fund and their principal occupations during the past five years:
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Name, Address
and Age
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Term of Office and
Length of Time
Served (1)
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Title
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Principal Occupations
During The Past
Five Years
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Number of
Portfolios in
the Fund
Complex
Overseen
by Trustee
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Other Directorships
Held by Trustee
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Trustees:
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T. Ritson Ferguson*
201
King of Prussia Road, Suite 600
Radnor, PA 19087
Age: 60
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3 years/
since inception
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Trustee, President and Chief Executive Officer
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Chief Executive Officer and
Co-Chief Investment Officer of CBRE Clarion Securities LLC (since 1995); Chief Executive Officer, Chief Investment
Officer and Global Chief Investment Officer of CBRE Global Investors (2015 - 2019)
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1
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Duke Management Company (DUMAC) (since 2018)
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Asuka Nakahara
201 King of
Prussia
Road, Suite 600
Radnor, PA 19087
Age: 64
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3 years/
since inception
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Trustee
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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)
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1
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Comcast Corporation
(since 2017)
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Frederick S. Hammer
201
King of Prussia Road, Suite 600
Radnor, PA 19087
Age: 83
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3 years/
since inception
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Trustee
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Co-Chairman of IA Capital Group and a member of its investment committee
(1994 - 2018)
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1
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Payall, Inc. (since 2018);
Homeowners Insurance Corp. (since 2006); JetPay Corporation (2011 - 2016)
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John R. Bartholdson
201
King of Prussia Road, Suite 600
Radnor, PA 19087
Age: 75
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3 years/
16 years
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Trustee/Audit Committee Financial Expert
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Senior Vice President, CFO and Treasurer, and a Director of Triumph Group, Inc.
(1993 - 2007)(Retired)
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1
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Berwyn Cornerstone Fund, Berwyn Income Fund, and Berwyn Fund (2013 - 2016)
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Leslie E. Greis
201 King
of Prussia Road, Suite 600
Radnor, PA 19087
Age: 61
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3 years/
1 year
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Trustee
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Managing Member, Perennial Capital Advisors, LLC
(2003 - present)
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1
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AIM Mutual, Inc. (2016 - present), Kinefac Corporation (2009 - present)
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(1)
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Each Trustee is elected to serve a three-year term concurrent with the class of Trustees to which he or she belongs.
Messrs. Ferguson and Hammer, as Class I Trustees, are currently serving a term expiring at the Trusts 2020 annual meeting of shareholders. Mr. Hammer has informed the Board that he intends to retire from the Board upon the conclusion
of his term and, therefore, will not stand for re-election at the 2020 annual meeting of shareholders. Mr. Nakahara, as Class II Trustee, is currently serving a term expiring at the Trusts 2021
annual meeting of shareholders. Mr Bartholdson and Ms. Greis, as Class III Trustees, are each currently serving a term expiring at the Trusts 2022 annual meeting of shareholders.
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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.
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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:
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Name, Address, Age
and Position(s) Held
with Registrant
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Length of Time
Served
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Principal Occupations During
the Past Five Years and
Other Affiliations
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Officers:
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Jonathan A. Blome
201 King
of Prussia Road, Suite 600
Radnor, PA 19087
Age: 42
Chief Financial Officer
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since 2006
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Chief Financial Officer and Director of Operations of CBRE Clarion Securities LLC (since 2011)
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Robert S. Tull III
201
King of Prussia Road, Suite 600
Radnor, PA 19087
Age: 42
Chief Compliance Officer and Secretary
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since 2019
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Chief Compliance Officer of CBRE Clarion Securities LLC (since 2008); Global Chief Compliance Officer for CBRE Global Investors (2017 - 2018)
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CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
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Supplemental Information (unaudited) continued
Board Considerations in Approving the Advisory Agreement
At a meeting of the Board held on December 3, 2019, the Board approved the continuation of the investment management agreement (the Advisory Agreement)
between the Advisor and the Trust through December 31, 2020. Overall, the Board concluded that continuation of the Advisory Agreement was in the best interests of the Trust and consistent with the expectations of its shareholders. In
determining to approve the continuation of the Advisory Agreement, the Board took into account a number of factors, in each case in the context of the specific facts and circumstances of the Trust and without assigning relative weight to any factor
or identifying any factor as determinative.
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, including the performance achieved by the Advisor for the Trust in varying market environments. The Board considered the consistency of the Advisors investment decision-making
process, the experience of the Advisors personnel, the stability of the Advisor and its parent company, and the continuing commitment of the Advisors executive management team and management committee to the operation and management of
the Trust, noting certain recent and upcoming changes to the executive management team and management committee. The Board also considered the administrative resources devoted by the Advisor to oversight of the Trusts operations, without
separate charge to the Trust. The Board noted the Trusts strategic focus on providing income to its shareholders and discussed current industry and economic trends and conditions. In reviewing the Trusts performance, the Board considered
information relating to the reported performance and fees and expenses of comparable closed-end real estate funds (peer group funds) and the Advisors view as to the reasons for performance
differences, including the Trusts global investment mandate, its focus on providing income and minimal use of leverage as compared to certain of the peer group funds and the Trusts overall risk profile. The Board also considered
information relating to the reported performance and fees and expenses of open-end real estate funds, as a point of reference. The Board concluded that the quality of the services provided to the Trust by the
Advisor, including the performance achieved for the Trust relative to its primary and secondary investment objectives, was satisfactory and supported the continued retention of the Advisor by the Trust.
The Board also considered the level of compensation to which the Advisor is entitled under the Advisory Agreement and concluded that fees paid to the Advisor by the Trust
are not excessive and that the advisory fee rate is reasonable under the circumstances of the Trust. In reaching this conclusion, the Board considered the Trusts advisory fee structure and the methodology with which the Advisors fee is
calculated. The Board also considered information provided by the Advisor with respect to the profits realized by the Advisor as a result of its services to the Trust, including the factors considered by the Advisor in determining such profits, and
the Advisors profitability in connection with its management of other advisory accounts and its services as sub-advisor to certain funds and separate accounts. The Board also considered the fact that the
Trusts advisory fee had remained comparable to that of peer group funds (some of which funds are charged separately for administrative services provided by their investment managers) while its total expense ratio, both including and excluding
interest on debt, was competitive with the average expense ratio of peer group funds. Additionally, the Board considered the extent to which the Advisor might benefit indirectly from its relationship with the Trust.
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 SEC (http://www.sec.gov).
Information regarding how the Trust voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended December 31, 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 SEC for the first and third quarters of each fiscal year on Form N-PORT. Copies of the filings are available by visiting the SEC website at www.sec.gov. The filed forms may also be viewed and copied at the Commissions Public Reference Room in Washington, DC. Information
regarding the operations of the Public Reference Room may be obtained by calling (800) SEC-0330.
Beginning on
January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Funds shareholder reports like this one will no longer be sent by mail, unless you specifically request paper
copies. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
You may elect to receive all future reports in paper free of charge. If you hold your shares through a financial intermediary (like a broker), you can inform the
intermediary that you wish to continue receiving paper copies of your shareholder reports. If you are the registered owner of your shares, you should contact the Funds transfer agent.
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 505000, Louisville, KY 40233, Phone Number: (866) 221-1580.
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26
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CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
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CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
BOARD OF TRUSTEES
T. RITSON FERGUSON
ASUKA NAKAHARA
FREDERICK S. HAMMER
JOHN R. BARTHOLDSON
LESLIE E. GREIS
OFFICERS
T. RITSON FERGUSON
PRESIDENT AND
CHIEF EXECUTIVE OFFICER
JONATHAN A. BLOME
CHIEF FINANCIAL OFFICER
ROBERT S. TULL III
CHIEF COMPLIANCE OFFICER
AND SECRETARY
INVESTMENT ADVISOR
CBRE CLARION SECURITIES LLC
201 KING OF PRUSSIA ROAD, SUITE 600
RADNOR, PA 19087
888-711-4272
ADMINISTRATOR AND CUSTODIAN
THE BANK OF NEW YORK MELLON
NEW YORK, NEW YORK
TRANSFER AGENT
COMPUTERSHARE
LOUISVILLE, KENTUCKY
LEGAL COUNSEL
MORGAN, LEWIS & BOCKIUS LLP
WASHINGTON, DC
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
KPMG LLP
PHILADELPHIA, PENNSYLVANIA