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: 1-877-711-4272
Date of fiscal year end: December 31
Date of reporting period: June 30, 2014
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, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The semi-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
Semi-Annual Report for the Six Months Ended June 30, 2014
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 SEMI-ANNUAL REPORT 2014 (unaudited)
2 | ||||
7 | ||||
9 | ||||
14 | ||||
19 |
Investors should consider a funds investment objectives, risks, charges and expenses carefully before investing. A copy of the prospectus that contains this and other information about the Fund may be obtained by calling 888-711-4272. Please read the prospectus carefully before investing. Investing in closed-end funds involves risk, including possible loss of principal. Past performance does not guarantee future results.
Real Estate investments are subject to changes in economic conditions, credit risk, and interest rate fluctuations. 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. Because real estate funds concentrate their investments in the real estate industry, the portfolio may experience more volatility and be exposed to greater risk than the portfolios of other funds.
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Funds investment return and principal value will fluctuate so that an investors shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the funds portfolio. There is no assurance that the Fund will achieve its investment objective.
SEMI-ANNUAL REPORT 2014 | 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) | The MSCI World Index is the broad stock index and the Barclays Capital Bond Index is the broad bond index. |
(4) | 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 |
The Trusts dividend is established by the Board of Trustees at regular intervals with consideration of its investment income, realized gains, returns of capital from portfolio companies, potential net appreciation of investments in passive foreign investment companies (PFICs) and other net unrealized appreciation and other expected income. The Board strives to establish a level monthly dividend that, over the course of the year, will serve to distribute an amount closely approximating the Trusts total taxable income and all of the returns of capital received by portfolio companies received during the year. The Board continues to review the sustainability of the Trusts regular monthly dividend in light of the current market environment. Based on the Trusts anticipated income and the appreciation of its portfolio in 2014, the Board has decided to maintain the monthly dividend at the current level rate of $0.045 per share.
Portfolio Review
The Trusts investments remain well-diversified by property type and geography as shown in the charts below. We made some changes to the geographic mix of the portfolio over the past 6 months. We decreased our Asia-Pacific portfolio by 4.5% and increased our European and US portfolios by 2% each. We also established a position in Mexico (around 1%). At June 30, the Trusts portfolio was approximately 50% invested in common stock within the Americas region, 19% in Europe and 23% in the Asia-Pacific region, with 9% of the portfolio invested in preferred stock of US real estate companies. By property type, we continue to favor retail properties including top-quality malls and shopping centers, where cash flow growth tends to benefit during economic recovery cycles. A number of the Trusts investments in the Asia-Pacific region are classified as diversified, since companies in this region tend to specialize by geography, owning a mix of high quality office, retail and residential properties. The Trust also has meaningful positions in the industrial, apartment and office sectors, which stand to benefit from the acceleration in economic activity we expect, particularly in the U.S.
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
Property values continue to rise as earnings grow and investors appetite for real estate grows given the very attractive spreads between real estate yields (i.e., cap rates) and the interest rates on bonds. In addition to growth from improving rents and occupancy, property companies are growing cash flow per share additionally via external growth from acquisitions often funded with value-adding capital recycling. Active balance sheet management is also adding value as the cost of debt for many companies remains low with conservative levels of financial leverage.
Real estate shares are benefitting from an ideal environment of improving growth and subdued inflation. The current shape of the yield curve is good for property companies and reflects a low inflationary environment. At June 30th, the rate on U.S. 10-year Treasury bond yields was 2.5%, down from 3.0% at the beginning of the year. This unexpected decline in rates is likely the result of mixed economic data releases. For instance, 1Q14 GDP declined 2.9% (no doubt influenced by difficult winter weather), and housing data has also been generally weaker than expected. More recently there has been some encouraging employment data with monthly non-farm payroll increases exceeding 200,000 and consumer confidence is inching higher, both of which directly underpin improving demand for commercial property including office space, apartments and retail spending. We find ourselves with a potentially powerful combination of gradually improving economic growth but scant evidence of inflation, thus providing the framework for potential continued strong performance for real estate companies, given their attractive current yields and steady earnings growth. Outside the U.S., the stage of economic recovery varies. The U.K. and Japan both show signs of accelerating economic growth. The Euro zone is improving tenuously. Chinas economic growth rate, while still positive, is clearly decelerating more than expected. The disparity in regional growth trends is a return to normal and requires careful stock selection and regional allocation decisions based on understanding the different prospects for growth.
SEMI-ANNUAL REPORT 2014 | 3 |
We expect property companies earnings to grow 6-7% in 2014-2015 as the economic recovery begins to gain further traction, and positively affect real estate cash flows. Given that the majority of the cash flows are largely contractual in nature, there is a fairly high degree of visibility to these projections, with risk to the upside meaning that any potential revisions are likely to be positive not negative.
Growing earnings leads to increased dividends. Current income generated by listed propertys dividend yield remains a defining investment characteristic of the sector. Listed property companies dividend yield currently averages 3-4% globally and is growing at a very healthy rate. We expect average dividend growth will be approximately 7% (which is the same growth as 2013), driven primarily by earnings growth.
Listed real estate values are still discounted relative to private market values. We estimate that listed property companies are trading at an average discount of 4% to NAV. As shown in the graph below, real estate is trading near par or at a discount in many major markets around the world, and comfortably within its 10-year range as indicated by each bar.
NAV Premium/Discount by Country | ||
Information is the opinion of CBRE Clarion as of 06/30/2014, 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. * Singapores historical range is from December 2004 through the end of June 2014.
The discount to NAV provides a cushion for REIT pricing should interest rates move higher. In effect, the market has already built into its pricing higher cap rates than we are expecting. This provides some additional potential upside as the year unfolds.
The listed sector continues to grow through equity issuance. Capital markets year-to-date have seen a steady flow of new equity issuance from all parts of the globe. 2013 was a banner year in which property companies raised nearly $59 billion of equity (including $26 billion of Initial Public Offerings (IPOs)) up from $36 billion raised in 2012 and $31 billion in 2011. The increased volume of equity issuance means many things, most of them healthy, including a number of interesting new public real estate companies to invest in, plentiful capital for well-conceived and executed investment activity, and the opportunity to actively manage balance sheets to improve flexibility, leverage and cost of capital.
Real estate companies can perform well in the face of rising rates. Despite the recent decline in interest rates, we expect interest rates to start increasing in the next 6-18 months. However, despite conventional wisdom that rising rates are bad for REITs (as investments with high yield), we are optimistic about the total return prospects for listed real estate as rates rise. History suggests that property company shares ultimately benefit from the underlying forces that cause rates to move higher, namely positive economic growth. Globally, data from the last 15-20 years suggests that property shares generally perform better when rates are stable or rising. The following charts show the average 12-month performance of property shares in four major listed property markets (U.S., Hong Kong, the U.K. and Japan) during periods when yields on 10-year government bonds moved up or down by the amount shown at the bottom of the graphs (rising rates to the right, falling rates to the left). Each countrys graph shows the same tendency property companies tend to generate positive returns during periods of rising interest rates and, in fact, better returns than during
4 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
periods of falling interest rates. The favorable performance is not surprising given that improving economic conditions also tend to lead to improvement of the revenue line for owners/operators of commercial property and that this over time typically more than offsets any increase in debt expenses or re-pricing of real estate values due to higher interest rates.
REIT Performance in a Rising Interest Rate Environment |
Historically, REITs have generated positive returns in rising interest rate environments. |
Source: Bloomberg and CBRE Clarion as of 06/30/2014. *Hong Kong data is from June 1999-June 2014 (169 twelve month observations). All other data from December 1994- June 30, 2014 (223 twelve month observations) UK: FTSE EPRA/NAREIT UK Index, UK Gov Bonds 10 Year Note Generic Bid Yield; Hong Kong: FTSE EPRA/NAREIT Hong Kong Index, HK Generic 10 Year Yield Index; , U.S.: MSCI U.S. REIT Index, U.S. Generic Govt. Bond 10-Year Yield, Japan: FTSE EPRA/NAREIT Japan Index; Japan Govt. Bond Year to Maturity 10-Year Simple Yield. An index is unmanaged and not available for direct investment. Yields fluctuate and are not guaranteed. Past performance is no guarantee of future results.
Despite strong performance year-to-date we expect listed property company shares to continue to move higher on the basis of attractive and growing dividends, earnings growth prospects of 6-7%, and an expectation of stable or improving earnings multiples since listed real estate currently trades in-line or at discounts to estimated underlying private market real estate values. In a world of gradual economic improvement, listed real estate should offer investors attractive total return potential over time.
We appreciate your continued faith and confidence.
Sincerely,
CBRE CLARION SECURITIES, LLC
T. Ritson Ferguson, CFA | Steven D. Burton, CFA | |
President & CEO |
Co-Portfolio Manager | |
Co-Portfolio Manager |
SEMI-ANNUAL REPORT 2014 | 5 |
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.
6 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Portfolio of Investments (unaudited)
June 30, 2014
See notes to financial statements.
SEMI-ANNUAL REPORT 2014 | 7 |
Portfolio of Investments concluded
Statement of Assets and Liabilities (unaudited)
June 30, 2014 | ||||||
Assets |
||||||
Investments, at value (cost $1,023,027,891) |
$1,299,871,681 | |||||
Cash and cash equivalents (including foreign currency of $225,630 |
297,135 | |||||
Unrealized appreciation on spot contracts |
2,811 | |||||
Dividends and interest receivable |
11,760,703 | |||||
Dividend withholding reclaims receivable |
558,945 | |||||
Other assets |
95,266 | |||||
Total Assets |
1,312,586,541 | |||||
Liabilities |
||||||
Payable for investment securities purchased |
20,254,134 | |||||
Line of credit payable |
105,282,700 | |||||
Unrealized depreciation on spot contracts |
5,502 | |||||
Management fee payable |
888,581 | |||||
Accrued expenses |
422,758 | |||||
Total Liabilities |
126,853,675 | |||||
Net Assets |
$1,185,732,866 | |||||
Composition of Net Assets |
||||||
$0.001 par value per share; |
$116,590 | |||||
Additional paid-in capital |
1,329,609,903 | |||||
Distributions in excess of net investment income |
(79,670,786 | ) | ||||
Accumulated net realized loss on investments, written options, swap contracts and foreign currency transactions |
(341,186,255 | ) | ||||
Net unrealized appreciation on investments and foreign currency denominated assets and liabilities |
276,863,414 | |||||
Net Assets |
$1,185,732,866 | |||||
Net Asset Value |
$10.17 |
See notes to financial statements.
SEMI-ANNUAL REPORT 2014 | 9 |
Statement of Operations (unaudited)
For the Six Months Ended June 30, 2014 |
||||||
Investment Income |
||||||
Dividends (net of foreign withholding taxes of $1,841,522) |
$33,493,925 | |||||
Interest |
84 | |||||
Total Investment Income |
33,494,009 | |||||
Expenses |
||||||
Management fees |
4,954,031 | |||||
Printing and mailing fees |
283,944 | |||||
Interest expense on line of credit |
266,504 | |||||
Administration fees |
126,857 | |||||
Transfer agent fees |
96,802 | |||||
Custodian fees |
91,489 | |||||
Insurance fees |
81,968 | |||||
Trustees fees and expenses |
78,187 | |||||
NYSE listing fee |
52,873 | |||||
Audit and tax fees |
39,434 | |||||
Legal fees |
31,077 | |||||
Miscellaneous expenses |
17,155 | |||||
Total Expenses |
6,120,321 | |||||
Net Investment Income |
27,373,688 | |||||
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions |
||||||
Net realized gain (loss) on: |
||||||
Investments |
17,363,851 | |||||
Foreign currency transactions |
(89,267 | ) | ||||
Total Net Realized Gain |
17,274,584 | |||||
Net change in unrealized appreciation (depreciation) on: |
||||||
Investments |
119,006,915 | |||||
Foreign currency denominated assets and liabilities |
21,990 | |||||
Total Net Change in Unrealized Appreciation (Depreciation) |
119,028,905 | |||||
Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions |
136,303,489 | |||||
Net Increase in Net Assets Resulting from Operations |
$163,677,177 |
See notes to financial statements.
10 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Statements of Changes in Net Assets
For the Six Months Ended June 30, 2014 (unaudited) |
For the Year Ended December 31, 2013 |
|||||||||||
Change in Net Assets Resulting from Operations |
||||||||||||
Net investment income |
$27,373,688 | $38,303,062 | ||||||||||
Net realized gain on investments and foreign currency transactions |
17,274,584 | 13,397,490 | ||||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currency denominated assets and liabilities |
119,028,905 | (40,203,214 | ) | |||||||||
Net increase in net assets resulting from operations |
163,677,177 | 11,497,338 | ||||||||||
Dividends and Distributions on Common Shares* |
||||||||||||
Distribution of net investment income |
(31,479,434 | ) | (44,911,599 | ) | ||||||||
Distribution of return of capital |
| (18,047,268 | ) | |||||||||
Total dividends and distributions on Common Shares |
(31,479,434 | ) | (62,958,867 | ) | ||||||||
Net Increase (Decrease) in Net Assets |
132,197,743 | (51,461,529 | ) | |||||||||
Net Assets |
||||||||||||
Beginning of period |
1,053,535,123 | 1,104,996,652 | ||||||||||
End of period (net of distributions in excess of net investment income of $79,670,786 and $75,565,040, respectively) |
$1,185,732,866 | $1,053,535,123 |
* | The final determination of the source of the 2014 distributions for tax purposes will be made after the Trusts fiscal year. |
See notes to financial statements.
SEMI-ANNUAL REPORT 2014 | 11 |
Statement of Cash Flows (unaudited)
For the Six Months Ended June 30, 2014 |
||||||
Cash Flows from Operating Activities: |
||||||
Net increase in net assets resulting from operations |
$163,677,177 | |||||
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 |
(119,006,915 | ) | ||||
Net realized gain on investments |
(17,363,851 | ) | ||||
Cost of securities purchased |
(207,556,268 | ) | ||||
Proceeds from sale of securities |
169,397,725 | |||||
Decrease in receivable for investment securities sold |
42,962,195 | |||||
Increase in dividends and interest receivable |
(5,412,626 | ) | ||||
Increase in dividend withholding reclaims receivable |
(511,783 | ) | ||||
Increase in unrealized appreciation on spot contracts |
(2,811 | ) | ||||
Decrease in other assets |
23,162 | |||||
Decrease in unrealized depreciation on spot contracts |
(7,367 | ) | ||||
Decrease in payable for investment securities purchased |
(41,062,554 | ) | ||||
Increase in management fee payable |
92,460 | |||||
Decrease in accrued expenses |
(7,238 | ) | ||||
Net Cash Used by Operating Activities |
(14,778,694 | ) | ||||
Cash Flows From Financing Activities: |
||||||
Cash distributions paid on common shares |
(31,479,434 | ) | ||||
Proceeds from borrowing on line of credit |
101,153,700 | |||||
Payments on line of credit |
(54,598,500 | ) | ||||
Net Cash Provided in Financing Activities |
15,075,766 | |||||
Net increase in cash |
297,072 | |||||
Cash and Cash Equivalents at Beginning of Period |
63 | |||||
Cash and Cash Equivalents at End of Period |
$297,135 | |||||
Supplemental disclosure |
||||||
Interest paid on line of credit |
$266,504 |
See notes to financial statements.
12 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Per share operating performance for a share outstanding throughout the period |
For the Six Months Ended June 30, 2014 (unaudited) |
For the Year Ended December 31, 2013 |
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 |
||||||||||||||||||||||||||||||||
Net asset value, beginning of period |
$9.04 | $9.48 | $8.14 | $8.58 | $7.51 | $5.63 | ||||||||||||||||||||||||||||||||
Income from investment operations |
||||||||||||||||||||||||||||||||||||||
Net investment income (1) |
0.23 | 0.33 | 0.33 | 0.34 | 0.36 | 0.39 | ||||||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investments, written options, swap contracts and foreign currency transactions |
1.17 | (0.23 | ) | 1.59 | (0.24 | ) | 1.25 | 2.03 | ||||||||||||||||||||||||||||||
Total from investment operations |
1.40 | 0.10 | 1.92 | 0.10 | 1.61 | 2.42 | ||||||||||||||||||||||||||||||||
Dividends and distributions on Common Shares |
||||||||||||||||||||||||||||||||||||||
Net investment income |
(0.27 | ) | (0.39 | ) | (0.58 | ) | (0.33 | ) | (0.54 | ) | (0.54 | ) | ||||||||||||||||||||||||||
Return of capital |
| (0.15 | ) | | (0.21 | ) | | | ||||||||||||||||||||||||||||||
Total dividends and distributions to Common Shareholders |
(0.27 | ) | (0.54 | ) | (0.58 | ) | (0.54 | ) | (0.54 | ) | (0.54 | ) | ||||||||||||||||||||||||||
Net asset value, end of period |
$10.17 | $9.04 | $9.48 | $8.14 | $8.58 | $7.51 | ||||||||||||||||||||||||||||||||
Market value, end of period |
$9.11 | $7.92 | $8.86 | $6.84 | $7.75 | $6.37 | ||||||||||||||||||||||||||||||||
Total investment return (2) |
||||||||||||||||||||||||||||||||||||||
Net asset value |
15.69 | % | 0.91 | % | 24.15 | % | 0.94 | % | 22.41 | % | 46.79 | % | ||||||||||||||||||||||||||
Market value |
18.70 | % | (4.93 | )% | 38.77 | % | (5.38 | )% | 31.06 | % | 79.09 | % | ||||||||||||||||||||||||||
Ratios and supplemental data |
||||||||||||||||||||||||||||||||||||||
Net assets, applicable to Common Shares, end of period (thousands) |
$1,185,733 | $1,053,535 | $1,104,997 | $949,576 | $1,000,238 | $875,448 | ||||||||||||||||||||||||||||||||
Ratios to average net assets applicable to Common Shares of: |
1.11 | %(3) | 1.06 | %(4) | 0.99 | % | 1.03 | % | 0.94 | % | 1.14 | % | ||||||||||||||||||||||||||
Net expenses, before fee waiver + |
1.11 | %(3) | 1.07 | %(4) | 1.05 | % | 1.14 | % | 1.11 | % | 1.38 | % | ||||||||||||||||||||||||||
Net expenses, after the fee waiver excluding interest on line of credit + |
1.06 | %(3) | 1.04 | %(4) | 0.98 | % | 0.97 | % | 0.90 | % | 1.12 | % | ||||||||||||||||||||||||||
Net expenses, before the fee waiver excluding interest on line of credit + |
1.06 | %(3) | 1.04 | %(4) | 1.04 | % | 1.09 | % | 1.07 | % | 1.35 | % | ||||||||||||||||||||||||||
Net investment income, after preferred share dividends |
4.97 | %(3) | 3.43 | % | 3.68 | % | 3.98 | % | 4.60 | % | 6.75 | % | ||||||||||||||||||||||||||
Preferred share dividends |
N/A | N/A | N/A | N/A | N/A | 0.04 | % | |||||||||||||||||||||||||||||||
Net investment income, before preferred share dividends + |
4.97 | %(3) | 3.43 | % | 3.68 | % | 3.98 | % | 4.60 | % | 6.79 | % | ||||||||||||||||||||||||||
Portfolio turnover rate |
14.04 | % | 11.38 | % | 14.42 | % | 1.53 | % | 12.91 | % | 28.04 | % |
(1) | Based on average shares outstanding. |
(2) | Total investment return does not reflect brokerage commissions. A return calculated for a period of less than one year is not annualized. 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. |
(3) | Annualized. |
(4) | Effective February 28, 2013, the investment management fee waiver agreement expired. |
+ | Does not reflect the effects of dividends to Preferred Shareholders. |
See notes to financial statements.
SEMI-ANNUAL REPORT 2014 | 13 |
Notes to Financial Statements (unaudited)
14 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Notes to Financial Statements continued
SEMI-ANNUAL REPORT 2014 | 15 |
Notes to Financial Statements continued
16 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Notes to Financial Statements continued
SEMI-ANNUAL REPORT 2014 | 17 |
Notes to Financial Statements concluded
18 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
Supplemental Information (unaudited)
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 Length of Time 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 | |||||
Trustees: | ||||||||||
T. Ritson Ferguson* 201 King of Prussia Road, Suite 600 Radnor, PA 19087 Age: 54 |
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 Road, Suite 600 Radnor, PA 19087 Age: 58 |
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 Road, Suite 600 Radnor, PA 19087 Age: 78 |
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 Road, Suite 600 Radnor, PA 19087 Age: 79 |
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). |
SEMI-ANNUAL REPORT 2014 | 19 |
Supplemental Information (unaudited) continued
Name, Address and Age |
Term of Office and Length of Time 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 | |||||
Trustees: | ||||||||||
John Bartholdson 201 King of Prussia Road, Suite 600 Radnor, PA 19087 Age: 69 |
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 | Trustee of Berwyn Cornerstone Fund, Berwyn Income Fund, and Berwyn Fund (since 2013). 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. |
** | Mr. Nakahara owned 5,000 shares of CB Richard Ellis Group, Inc. (CB Richard Ellis), of which the advisor is an indirect majority-owned subsidiary, as of July 1, 2011, the date CB Richard Ellis acquired the advisor, and through September 2, 2011, technically making him an interested person of the Trust (as defined in the 1940 Act) during that period. Mr. Nakahara purchased the shares several years ago. Mr. Nakahara no longer owns those shares and is an independent Trustee of the Trust. |
20 | 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: 37 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: 46 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). |
SEMI-ANNUAL REPORT 2014 | 21 |
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 30170 College Station, TX 77842-3170, Phone Number: (866) 221-1580.
22 | CBRE CLARION GLOBAL REAL ESTATE INCOME FUND |
CBRE CLARION GLOBAL REAL ESTATE INCOME FUND
Item 2. Code of Ethics.
Not applicable for semi-annual reporting period.
Item 3. Audit Committee Financial Expert.
Not applicable for semi-annual reporting period.
Item 4. Principal Accountant Fees and Services.
Not applicable for semi-annual reporting period.
Item 5. Audit Committee of Listed Registrants.
Not applicable for semi-annual reporting period.
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.
Not applicable for semi-annual reporting period.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
There has been no change, as of the date of this filing, in any of the portfolio managers identified in response to paragraph (a)(1) of this Item in the registrants most recently filed annual report on Form N-CSR.
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) | Not applicable. |
(a)(2) | Certification of chief executive officer and chief financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
(a)(3) | Not applicable. |
(b) | Certification of chief executive officer and chief financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
(c) | 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 (Signature and Title)* /s/ T. Ritson Ferguson |
T. Ritson Ferguson |
President and Chief Executive Officer |
Date 8/28/2014 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* /s/ T. Ritson Ferguson |
T. Ritson Ferguson |
President and Chief Executive Officer |
Date 8/28/2014 |
By (Signature and Title)* /s/ Jonathan A. Blome |
Jonathan A. Blome |
Chief Financial Officer |
Date 8/28/2014 |
* Print the name and title of each signing officer under his or her signature.
Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the
Sarbanes-Oxley Act
I, T. Ritson Ferguson, certify that:
1. | I have reviewed this report on Form N-CSR of CBRE Clarion Global Real Estate Income Fund; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: 8/28/2014 |
/s/ T. Ritson Ferguson | |
T. Ritson Ferguson | ||
President and Chief Executive Officer |
Certification Pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the
Sarbanes-Oxley Act
I, Jonathan A. Blome, certify that:
1. | I have reviewed this report on Form N-CSR of CBRE Clarion Global Real Estate Income Fund; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: 8/28/2014 |
/s/ Jonathan A. Blome | |
Jonathan A. Blome | ||
Chief Financial Officer |
Certification Pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the
Sarbanes-Oxley Act
I, T. Ritson Ferguson, President and Chief Executive Officer of CBRE Clarion Global Real Estate Income Fund (the Registrant), certify that:
1. | The Form N-CSR of the Registrant (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Date: 8/28/2014 |
/s/ T. Ritson Ferguson | |
T. Ritson Ferguson | ||
President and Chief Executive Officer |
I, Jonathan A. Blome, Chief Financial Officer of CBRE Clarion Global Real Estate Income Fund (the Registrant), certify that:
1. | The Form N-CSR of the Registrant (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant. |
Date: 8/28/2014 |
/s/ Jonathan A. Blome | |
Jonathan A. Blome | ||
Chief Financial Officer |
EXHIBIT 99.C
CBRE Clarion Global Real Estate Income Fund
(NYSE: IGR)
CUSIP: 12504G100
Dear Shareholders:
This notice provides detailed information which may assist you and your advisors. This notice is for informational purposes only. No action is required on your part.
CBRE Clarion Global Real Estate Income Fund (the Fund) has declared a monthly distribution of $0.045 per share for the month of January 2014. You are receiving this notice as a requirement of the Funds managed distribution plan. This notice is intended to provide insight into the estimated character of the current (and year-to-date) distribution(s) in terms of income, capital gain, and potential return of capital. You should expect to receive this notice with every distribution. The character of the current (and YTD) distribution(s) will change through the course of the year, as the Funds estimates of the sources of its income become more clear.
The Fund has paid or declared total distribution of $0.045 per share to date in fiscal year 2014 (January 1, 2014 to January 31, 2014). The source of the distribution declared for the month and current fiscal year is estimated as follows:
Estimated Source of Distributions: | ||||||||||
Estimated Allocations | ||||||||||
Distribution | Net Investment Income* |
Net Realized Short- Term Capital Gains |
Net Realized Long- Term Capital Gains |
Return of Capital | ||||||
Current |
$0.045 | $0.019 (42%) | (0%) | (0%) | $0.026 (58%) | |||||
YTD |
$0.045 | $0.019 (42%) | (0%) | (0%) | $0.026 (58%) |
*Includes PFIC losses, as defined below.
The amounts and sources of distributions reported in this 19(a) Notice are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations.
SHAREHOLDERS SHOULD NOT USE THE INFORMATION PROVIDED IN THIS NOTICE IN PREPARING THEIR TAX RETURNS. SHAREHOLDERS WILL RECEIVE A FORM 1099-DIV FOR THE CALENDAR YEAR INDICATING HOW TO REPORT FUND DISTRIBUTIONS FOR FEDERAL INCOME TAX PURPOSES.
The Funds dividend policy is established by its Board of Trustees. The dividend is set by the Board at regular intervals with consideration of investment income and realized gains expected for the year. Each distribution is expected to be paid from some or all of the following sources: net investment income, realized capital gains and, in certain cases, return of capital. The Funds distribution rate should not be confused with pure income or yield. The Fund strives to establish a level regular dividend that, over the course of the year, will serve to distribute all income and realized gains, minimizing the need for special distributions.
The Fund invests primarily in real estate investment trusts (REITs) and similar companies. When these companies make distributions during the year, they do not disclose the character of those distributions. The Fund uses historical information to generate the estimated character reflected in this notice. Until the Fund receives information as to the character of distributions it has received from these companies generally around January 31 of the following year it cannot provide a definitive characterization of the source of distributions paid to shareholders.
The Fund invests in certain companies that have been designated as passive foreign investment companies (PFICs) for purposes of U.S. tax regulations. Increases in the value of these PFICs (PFIC Income) increase the income of the Fund. PFIC Income does not reflect dividends or other income actually received by the Fund, although it does serve to increase the net investment income the Fund is required to distribute. Distributions of PFIC Income may result in a return of capital. The amount of net Investment Income described in the foregoing table (Estimated Source of Distributions) may include PFIC Income. Decreases in the value of these PFICs (PFIC Losses) offset the other investment income of the Fund. PFIC Losses do not reflect a diminution in the amount of dividends or income actually received by the Fund, although they do serve to reduce the net investment income the Fund is required to distribute. The amount of net investment income in the foregoing table (Estimated Source of Distributions) may have been reduced by PFIC Losses.
The Fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Shareholders should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds managed distribution policy. Please note that all performance figures below are based on the Funds net asset value (NAV) and not the market price of the Funds shares. Performance figures are not meant to represent individual shareholder performance. The value of a shareholders investment in the Fund is determined by the market price of the Funds shares.
The Funds Cumulative Year-to-Date Total Return for fiscal year 2013 (January 1, 2013, through December 31, 2013) is set forth below. Shareholders should take note of the relationship between the Cumulative Year-to-date Total Return and the Funds Cumulative Distribution Rate for 2013, as well as its Current Annualized Distribution Rate. Moreover, the Funds Average Annual Total Return for the preceding five-year period (January 1, 2009, through December 31, 2013) is set forth below. Shareholders should take note of the relationship between the Funds Average Annual Total Return and the Funds Average Annual Distribution Rate for the preceding five-year period. The performance and distribution rate information disclosed in the table below is based on the Funds net asset value (NAV). The Funds NAV is calculated as the total market value of all the securities and other assets held by the Fund minus the total value of its liabilities.
Fund Performance and Distribution Rate Information:
Year-to-date 01/01/2013 to 12/31/2013 |
| |||
Cumulative Year-to-Date Total Return1 |
0.91 | % | ||
Cumulative Distribution Rate2 |
5.97 | % | ||
Preceding Five-Year Period 01/01/2009 to 12/31/2013 |
||||
Average Annual Total Return3 |
19.04 | % | ||
Average Annual Distribution Rate4 |
6.92 | % | ||
Current Annualized Distribution Rate5 |
5.97 | % |
1 | Cumulative Year-to-Date Total Return is the percentage change in the Funds NAV over the year-to-date time period including distributions paid and assuming reinvestment of those distributions. |
2 | Cumulative Distribution Rate for the Funds current fiscal period (January 1, 2013, through December 31, 2013) measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of December 31, 2013. |
3 | Average Annual Total Return represents the simple arithmetic average of the Annual Total Returns of the Fund for the preceding five-year period. Annual Total Return is the percentage change in the Funds NAV over a year including distributions paid and assuming reinvestment of those distributions. |
4 | Average Annual Distribution Rate is the simple arithmetic average of the Annual Distribution Rates for the preceding five-year period. The Annual Distribution Rates are calculated by taking the total distributions paid during the period divided by average daily NAV for the period. |
5 | The Current Annualized Distribution Rate is the current monthly distribution rate annualized as a percentage of the Funds NAV as of December 31, 2013. |
For more information on the Fund, please contact your financial advisor or visit us on the web at www.cbreclarion.com.
As always, we appreciate your investment in the CBRE Clarion Global Real Estate Income Fund.
CBRE Clarion Global Real Estate Income Fund
January 13, 2014
CBRE Clarion Global Real Estate Income Fund
(NYSE: IGR)
CUSIP: 12504G100
Dear Shareholders:
This notice provides detailed information which may assist you and your advisors. This notice is for informational purposes only. No action is required on your part.
CBRE Clarion Global Real Estate Income Fund (the Fund) has declared a monthly distribution of $0.045 per share for the month of February 2014. You are receiving this notice as a requirement of the Funds managed distribution plan. This notice is intended to provide insight into the estimated character of the current (and year-to-date) distribution(s) in terms of income, capital gain, and potential return of capital. You should expect to receive this notice with every distribution. The character of the current (and YTD) distribution(s) will change through the course of the year, as the Funds estimates of the sources of its income become more clear.
The Fund has paid or declared total distribution of $0.09 per share to date in fiscal year 2014 (January 1, 2014 to February 28, 2014). The source of the distribution declared for the month and current fiscal year is estimated as follows:
Estimated Source of Distributions: | ||||||||||
Estimated Allocations | ||||||||||
Distribution | Net Investment Income* |
Net Realized Short- Term Capital Gains |
Net Realized Long- Term Capital Gains |
Return of Capital | ||||||
Current |
$0.045 | $0.016 (35%) | (0%) | (0%) | $0.029 (65%) | |||||
YTD |
$0.09 | $0.032 (35%) | (0%) | (0%) | $0.058 (65%) |
*Includes PFIC losses, as defined below.
The amounts and sources of distributions reported in this 19(a) Notice are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations.
SHAREHOLDERS SHOULD NOT USE THE INFORMATION PROVIDED IN THIS NOTICE IN PREPARING THEIR TAX RETURNS. SHAREHOLDERS WILL RECEIVE A FORM 1099-DIV FOR THE CALENDAR YEAR INDICATING HOW TO REPORT FUND DISTRIBUTIONS FOR FEDERAL INCOME TAX PURPOSES.
The Funds dividend policy is established by its Board of Trustees. The dividend is set by the Board at regular intervals with consideration of investment income and realized gains expected for the year. Each distribution is expected to be paid from some or all of the following sources: net investment income, realized capital gains and, in certain cases, return of capital. The Funds distribution rate should not be confused with pure income or yield. The Fund strives to establish a level regular dividend that, over the course of the year, will serve to distribute all income and realized gains, minimizing the need for special distributions.
The Fund invests primarily in real estate investment trusts (REITs) and similar companies. When these companies make distributions during the year, they do not disclose the character of those distributions. The Fund uses historical information to generate the estimated character reflected in this notice. Until the Fund receives information as to the character of distributions it has received from these companies generally around January 31 of the following year it cannot provide a definitive characterization of the source of distributions paid to shareholders.
The Fund invests in certain companies that have been designated as passive foreign investment companies (PFICs) for purposes of U.S. tax regulations. Increases in the value of these PFICs (PFIC Income) increase the income of the Fund. PFIC Income does not reflect dividends or other income actually received by the Fund, although it does serve to increase the net investment income the Fund is required to distribute. Distributions of PFIC Income may result in a return of capital. The amount of net Investment Income described in the foregoing table (Estimated Source of Distributions) may include PFIC Income. Decreases in the value of these PFICs (PFIC Losses) offset the other investment income of the Fund. PFIC Losses do not reflect a diminution in the amount of dividends or income actually received by the Fund, although they do serve to reduce the net investment income the Fund is required to distribute. The amount of net investment income in the foregoing table (Estimated Source of Distributions) may have been reduced by PFIC Losses.
The Fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Shareholders should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds managed distribution policy. Please note that all performance figures below are based on the Funds net asset value (NAV) and not the market price of the Funds shares. Performance figures are not meant to represent individual shareholder performance. The value of a shareholders investment in the Fund is determined by the market price of the Funds shares.
The Funds Cumulative Year-to-Date Total Return for fiscal year 2014 (January 1, 2014, through January 31, 2014) is set forth below. Shareholders should take note of the relationship between the Cumulative Year-to-date Total Return and the Funds Cumulative Distribution Rate for 2014, as well as its Current Annualized Distribution Rate. Moreover, the Funds Average Annual Total Return for the preceding five-year period (February 1, 2009, through January 31, 2014) is set forth below. Shareholders should take note of the relationship between the Funds Average Annual Total Return and the Funds Average Annual Distribution Rate for the preceding five-year period. The performance and distribution rate information disclosed in the table below is based on the Funds net asset value (NAV). The Funds NAV is calculated as the total market value of all the securities and other assets held by the Fund minus the total value of its liabilities.
Fund Performance and Distribution Rate Information:
Year-to-date 01/01/2014 to 01/31/2014 |
| |||
Cumulative Year-to-Date Total Return1 |
0.28 | % | ||
Cumulative Distribution Rate2 |
0.50 | % | ||
Preceding Five-Year Period 02/01/2009 to 01/31/2014 |
||||
Average Annual Total Return3 |
23.26 | % | ||
Average Annual Distribution Rate4 |
6.84 | % | ||
Current Annualized Distribution Rate5 |
5.99 | % |
1 | Cumulative Year-to-Date Total Return is the percentage change in the Funds NAV over the year-to-date time period including distributions paid and assuming reinvestment of those distributions. |
2 | Cumulative Distribution Rate for the Funds current fiscal period (January 1, 2014, through January 31, 2014) measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of January 31, 2014. |
3 | Average Annual Total Return represents the simple arithmetic average of the Annual Total Returns of the Fund for the preceding five-year period. Annual Total Return is the percentage change in the Funds NAV over a year including distributions paid and assuming reinvestment of those distributions. |
4 | Average Annual Distribution Rate is the simple arithmetic average of the Annual Distribution Rates for the preceding five-year period. The Annual Distribution Rates are calculated by taking the total distributions paid during the period divided by average daily NAV for the period. |
5 | The Current Annualized Distribution Rate is the current monthly distribution rate annualized as a percentage of the Funds NAV as of January 31, 2014. |
For more information on the Fund, please contact your financial advisor or visit us on the web at www.cbreclarion.com.
As always, we appreciate your investment in the CBRE Clarion Global Real Estate Income Fund.
CBRE Clarion Global Real Estate Income Fund
February 10, 2014
CBRE Clarion Global Real Estate Income Fund
(NYSE: IGR)
CUSIP: 12504G100
Dear Shareholders:
This notice provides detailed information which may assist you and your advisors. This notice is for informational purposes only. No action is required on your part.
CBRE Clarion Global Real Estate Income Fund (the Fund) has declared a monthly distribution of $0.045 per share for the month of March 2014. You are receiving this notice as a requirement of the Funds managed distribution plan. This notice is intended to provide insight into the estimated character of the current (and year-to-date) distribution(s) in terms of income, capital gain, and potential return of capital. You should expect to receive this notice with every distribution. The character of the current (and YTD) distribution(s) will change through the course of the year, as the Funds estimates of the sources of its income become more clear.
The Fund has paid or declared total distribution of $0.135 per share to date in fiscal year 2014 (January 1, 2014 to March 31, 2014). The source of the distribution declared for the month and current fiscal year is estimated as follows:
Estimated Source of Distributions: | ||||||||||
Estimated Allocations | ||||||||||
Distribution | Net Investment Income* |
Net Realized Short- Term Capital Gains |
Net Realized Long- Term Capital Gains |
Return of Capital | ||||||
Current |
$0.045 | $0.013 (29%) | (0%) | (0%) | $0.032 (71%) | |||||
YTD |
$0.135 | $0.038 (29%) | (0%) | (0%) | $0.097 (71%) |
*Includes PFIC losses, as defined below.
The amounts and sources of distributions reported in this 19(a) Notice are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations.
SHAREHOLDERS SHOULD NOT USE THE INFORMATION PROVIDED IN THIS NOTICE IN PREPARING THEIR TAX RETURNS. SHAREHOLDERS WILL RECEIVE A FORM 1099-DIV FOR THE CALENDAR YEAR INDICATING HOW TO REPORT FUND DISTRIBUTIONS FOR FEDERAL INCOME TAX PURPOSES.
The Funds dividend policy is established by its Board of Trustees. The dividend is set by the Board at regular intervals with consideration of investment income and realized gains expected for the year. Each distribution is expected to be paid from some or all of the following sources: net investment income, realized capital gains and, in certain cases, return of capital. The Funds distribution rate should not be confused with pure income or yield. The Fund strives to establish a level regular dividend that, over the course of the year, will serve to distribute all income and realized gains, minimizing the need for special distributions.
The Fund invests primarily in real estate investment trusts (REITs) and similar companies. When these companies make distributions during the year, they do not disclose the character of those distributions. The Fund uses historical information to generate the estimated character reflected in this notice. Until the Fund receives information as to the character of distributions it has received from these companies generally around January 31 of the following year it cannot provide a definitive characterization of the source of distributions paid to shareholders.
The Fund invests in certain companies that have been designated as passive foreign investment companies (PFICs) for purposes of U.S. tax regulations. Increases in the value of these PFICs (PFIC Income) increase the income of the Fund. PFIC Income does not reflect dividends or other income actually received by the Fund, although it does serve to increase the net investment income the Fund is required to distribute. Distributions of PFIC Income may result in a return of capital. The amount of net Investment Income described in the foregoing table (Estimated Source of Distributions) may include PFIC Income. Decreases in the value of these PFICs (PFIC Losses) offset the other investment income of the Fund. PFIC Losses do not reflect a diminution in the amount of dividends or income actually received by the Fund, although they do serve to reduce the net investment income the Fund is required to distribute. The amount of net investment income in the foregoing table (Estimated Source of Distributions) may have been reduced by PFIC Losses.
The Fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Shareholders should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds managed distribution policy. Please note that all performance figures below are based on the Funds net asset value (NAV) and not the market price of the Funds shares. Performance figures are not meant to represent individual shareholder performance. The value of a shareholders investment in the Fund is determined by the market price of the Funds shares.
The Funds Cumulative Year-to-Date Total Return for fiscal year 2014 (January 1, 2014 through February 28, 2014) is set forth below. Shareholders should take note of the relationship between the Cumulative Year-to-date Total Return and the Funds Cumulative Distribution Rate for 2014, as well as its Current Annualized Distribution Rate. Moreover, the Funds Average Annual Total Return for the preceding five-year period (March 1, 2009 through February 28, 2014) is set forth below. Shareholders should take note of the relationship between the Funds Average Annual Total Return and the Funds Average Annual Distribution Rate for the preceding five-year period. The performance and distribution rate information disclosed in the table below is based on the Funds net asset value (NAV). The Funds NAV is calculated as the total market value of all the securities and other assets held by the Fund minus the total value of its liabilities.
Fund Performance and Distribution Rate Information:
Year-to-date 01/01/2014 to 02/28/2014 |
| |||
Cumulative Year-to-Date Total Return1 |
5.56 | % | ||
Cumulative Distribution Rate2 |
0.95 | % | ||
Preceding Five-Year Period 03/01/2009 to 02/28/2014 |
||||
Average Annual Total Return3 |
31.03 | % | ||
Average Annual Distribution Rate4 |
6.75 | % | ||
Current Annualized Distribution Rate5 |
5.71 | % |
1 | Cumulative Year-to-Date Total Return is the percentage change in the Funds NAV over the year-to-date time period including distributions paid and assuming reinvestment of those distributions. |
2 | Cumulative Distribution Rate for the Funds current fiscal period (January 1, 2014, through February 28, 2014) measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of February 28, 2014. |
3 | Average Annual Total Return represents the simple arithmetic average of the Annual Total Returns of the Fund for the preceding five-year period. Annual Total Return is the percentage change in the Funds NAV over a year including distributions paid and assuming reinvestment of those distributions. |
4 | Average Annual Distribution Rate is the simple arithmetic average of the Annual Distribution Rates for the preceding five-year period. The Annual Distribution Rates are calculated by taking the total distributions paid during the period divided by average daily NAV for the period. |
5 | The Current Annualized Distribution Rate is the current monthly distribution rate annualized as a percentage of the Funds NAV as of February 28, 2014. |
For more information on the Fund, please contact your financial advisor or visit us on the web at www.cbreclarion.com.
As always, we appreciate your investment in the CBRE Clarion Global Real Estate Income Fund.
CBRE Clarion Global Real Estate Income Fund
March 14, 2014
CBRE Clarion Global Real Estate Income Fund
(NYSE: IGR)
CUSIP: 12504G100
Dear Shareholders:
This notice provides detailed information which may assist you and your advisors. This notice is for informational purposes only. No action is required on your part.
CBRE Clarion Global Real Estate Income Fund (the Fund) has declared a monthly distribution of $0.045 per share for the month of April 2014. You are receiving this notice as a requirement of the Funds managed distribution plan. This notice is intended to provide insight into the estimated character of the current (and year-to-date) distribution(s) in terms of income, capital gain, and potential return of capital. You should expect to receive this notice with every distribution. The character of the current (and YTD) distribution(s) will change through the course of the year, as the Funds estimates of the sources of its income become more clear.
The Fund has paid or declared total distribution of $0.18 per share to date in fiscal year 2014 (January 1, 2014 to April 30, 2014). The source of the distribution declared for the month and current fiscal year is estimated as follows:
Estimated Source of Distributions: | ||||||||||
Estimated Allocations | ||||||||||
Distribution | Net Investment Income* |
Net Realized Short- Term Capital Gains |
Net Realized Long- Term Capital Gains |
Return of Capital | ||||||
Current |
$0.045 | $0.008 (17%) | (0%) | (0%) | $0.037 (83%) | |||||
YTD |
$0.18 | $0.031 (17%) | (0%) | (0%) | $0.149 (83%) |
*Includes PFIC losses, as defined below.
The amounts and sources of distributions reported in this 19(a) Notice are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations.
SHAREHOLDERS SHOULD NOT USE THE INFORMATION PROVIDED IN THIS NOTICE IN PREPARING THEIR TAX RETURNS. SHAREHOLDERS WILL RECEIVE A FORM 1099-DIV FOR THE CALENDAR YEAR INDICATING HOW TO REPORT FUND DISTRIBUTIONS FOR FEDERAL INCOME TAX PURPOSES.
The Funds dividend policy is established by its Board of Trustees. The dividend is set by the Board at regular intervals with consideration of investment income and realized gains expected for the year. Each distribution is expected to be paid from some or all of the following sources: net investment income, realized capital gains and, in certain cases, return of capital. The Funds distribution rate should not be confused with pure income or yield. The Fund strives to establish a level regular dividend that, over the course of the year, will serve to distribute all income and realized gains, minimizing the need for special distributions.
The Fund invests primarily in real estate investment trusts (REITs) and similar companies. When these companies make distributions during the year, they do not disclose the character of those distributions. The Fund uses historical information to generate the estimated character reflected in this notice. Until the Fund receives information as to the character of distributions it has received from these companies generally around January 31 of the following year it cannot provide a definitive characterization of the source of distributions paid to shareholders.
The Fund invests in certain companies that have been designated as passive foreign investment companies (PFICs) for purposes of U.S. tax regulations. Increases in the value of these PFICs (PFIC Income) increase the income of the Fund. PFIC Income does not reflect dividends or other income actually received by the Fund, although it does serve to increase the net investment income the Fund is required to distribute. Distributions of PFIC Income may result in a return of capital. The amount of net Investment Income described in the foregoing table (Estimated Source of Distributions) may include PFIC Income. Decreases in the value of these PFICs (PFIC Losses) offset the other investment income of the Fund. PFIC Losses do not reflect a diminution in the amount of dividends or income actually received by the Fund, although they do serve to reduce the net investment income the Fund is required to distribute. The amount of net investment income in the foregoing table (Estimated Source of Distributions) may have been reduced by PFIC Losses.
The Fund estimates that it has distributed more than its income and capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Shareholders should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds managed distribution policy. Please note that all performance figures below are based on the Funds net asset value (NAV) and not the market price of the Funds shares. Performance figures are not meant to represent individual shareholder performance. The value of a shareholders investment in the Fund is determined by the market price of the Funds shares.
The Funds Cumulative Year-to-Date Total Return for fiscal year 2014 (January 1, 2014 through March 31, 2014) is set forth below. Shareholders should take note of the relationship between the Cumulative Year-to-date Total Return and the Funds Cumulative Distribution Rate for 2014, as well as its Current Annualized Distribution Rate. Moreover, the Funds Average Annual Total Return for the preceding five-year period (April 1, 2009 through March 31, 2014) is set forth below. Shareholders should take note of the relationship between the Funds Average Annual Total Return and the Funds Average Annual Distribution Rate for the preceding five-year period. The performance and distribution rate information disclosed in the table below is based on the Funds net asset value (NAV). The Funds NAV is calculated as the total market value of all the securities and other assets held by the Fund minus the total value of its liabilities.
Fund Performance and Distribution Rate Information:
Year-to-date 01/01/2014 to 03/31/2014 |
| |||
Cumulative Year-to-Date Total Return1 |
6.28 | % | ||
Cumulative Distribution Rate2 |
1.43 | % | ||
Preceding Five-Year Period 04/01/2009 to 03/31/2014 |
||||
Average Annual Total Return3 |
30.14 | % | ||
Average Annual Distribution Rate4 |
6.64 | % | ||
Current Annualized Distribution Rate5 |
5.70 | % |
1 | Cumulative Year-to-Date Total Return is the percentage change in the Funds NAV over the year-to-date time period including distributions paid and assuming reinvestment of those distributions. |
2 | Cumulative Distribution Rate for the Funds current fiscal period (January 1, 2014, through March 31, 2014) measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of March 31, 2014. |
3 | Average Annual Total Return represents the simple arithmetic average of the Annual Total Returns of the Fund for the preceding five-year period. Annual Total Return is the percentage change in the Funds NAV over a year including distributions paid and assuming reinvestment of those distributions. |
4 | Average Annual Distribution Rate is the simple arithmetic average of the Annual Distribution Rates for the preceding five-year period. The Annual Distribution Rates are calculated by taking the total distributions paid during the period divided by average daily NAV for the period. |
5 | The Current Annualized Distribution Rate is the current monthly distribution rate annualized as a percentage of the Funds NAV as of March 31, 2014. |
For more information on the Fund, please contact your financial advisor or visit us on the web at www.cbreclarion.com.
As always, we appreciate your investment in the CBRE Clarion Global Real Estate Income Fund.
CBRE Clarion Global Real Estate Income Fund
April 10, 2014
CBRE Clarion Global Real Estate Income Fund
(NYSE: IGR)
CUSIP: 12504G100
Dear Shareholders:
This notice provides detailed information which may assist you and your advisors. This notice is for informational purposes only. No action is required on your part.
CBRE Clarion Global Real Estate Income Fund (the Fund) has declared a monthly distribution of $0.045 per share for the month of May 2014. You are receiving this notice as a requirement of the Funds managed distribution plan. This notice is intended to provide insight into the estimated character of the current (and year-to-date) distribution(s) in terms of income, capital gain, and potential return of capital. You should expect to receive this notice with every distribution. The character of the current (and YTD) distribution(s) will change through the course of the year, as the Funds estimates of the sources of its income become more clear.
The Fund has paid or declared total distribution of $0.225 per share to date in fiscal year 2014 (January 1, 2014 to May 31, 2014). The source of the distribution declared for the month and current fiscal year is estimated as follows:
Estimated Source of Distributions: | ||||||||||
Estimated Allocations | ||||||||||
Distribution | Net Investment Income* |
Net Realized Short- Term Capital Gains |
Net Realized Long- Term Capital Gains |
Return of Capital | ||||||
Current |
$0.045 | $0.019 (42%) | (0%) | (0%) | $0.026 (58%) | |||||
YTD |
$0.225 | $0.095 (42%) | (0%) | (0%) | $0.130 (58%) |
*Includes PFIC losses, as defined below.
The amounts and sources of distributions reported in this 19(a) Notice are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. THE FUND WILL SEND YOU A FORM 1099-DIV FOR THE CALENDAR YEAR INDICATING HOW TO REPORT FUND DISTRIBUTIONS FOR FEDERAL INCOME TAX PURPOSES.
The Funds dividend policy is established by its Board of Trustees. The dividend is set by the Board at regular intervals with consideration of investment income, realized gains, return of capital by portfolio companies, potential net appreciation of investments in passive foreign investment companies (PFICs), and other net unrealized appreciation and other income expected for the year. Each distribution is expected to be paid from some or all of the following sources: net investment income, realized capital gains and, in certain cases, return of capital. The Funds distribution rate should not be confused with pure income or yield. The Fund strives to establish a level regular dividend that, over the course of the year, will serve to distribute an amount closely approximating the total taxable income of the Fund and all of the returns of capital by portfolio companies received by the Fund during the year.
The Fund invests primarily in real estate investment trusts (REITs) and similar companies. When these companies make distributions during the year, they do not disclose the character of those distributions. The Fund uses historical information to generate the estimated character reflected in this notice. Until the Fund receives information as to the character of distributions it has received from these companies generally around January 31 of the following year it cannot provide a definitive characterization of the source of distributions paid to shareholders.
The Fund invests in certain companies that have been designated as PFICs for purposes of U.S. tax regulations. Increases in the value of these PFICs (PFIC Income) increase the income of the Fund. PFIC Income does not reflect dividends or other income actually received by the Fund, although it does serve to increase the net investment income the Fund is required to distribute. The amount of net Investment Income described in the foregoing table (Estimated Source of Distributions) may include PFIC Income. Decreases in the value of these PFICs (PFIC Losses) offset the other investment income of the Fund. PFIC Losses do not reflect a diminution in the amount of dividends or income actually received by the Fund, although they do serve to reduce the net investment income the Fund is required to distribute. The amount of net investment income in the foregoing table (Estimated Source of Distributions) may have been reduced by PFIC Losses.
The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Shareholders should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds managed distribution policy. The performance and distribution rate information disclosed in the table below is based on the Funds net asset value (NAV). The Funds NAV is calculated as the total market value of all the securities and other assets held by the Fund minus the total value of its liabilities. Performance figures are not meant to represent individual shareholder performance. The value of a shareholders investment in the Fund is determined by the market price of the Funds shares.
The Funds Cumulative Total Return for fiscal year to date 2014 (January 1, 2014 through April 30, 2014) is set forth below. Shareholders should take note of the relationship between the Cumulative Total Return and the Funds Cumulative Distribution Rate for 2014. Moreover, the Funds Average Annual Total Return for the preceding five-year period (May 1, 2009 through April 30, 2014) is set forth below. Shareholders should take note of the relationship between the Funds Average Annual Total Return and the Funds current Annualized Distribution Rate, as well as its Average Annual Distribution Rate for the preceding five-year period.
Fund Performance and Distribution Rate Information:
Year-to-date 01/01/2014 to 04/30/2014 |
| |||
Cumulative Total Return1 |
9.59 | % | ||
Cumulative Distribution Rate2 |
1.85 | % | ||
Preceding Five-Year Period 05/01/2009 to 04/30/2014 |
||||
Average Annual Total Return3 |
24.39 | % | ||
Average Annual Distribution Rate4 |
6.56 | % | ||
Current Annualized Distribution Rate5 |
5.56 | % |
1 | Cumulative Year-to-Date Total Return is the percentage change in the Funds NAV over the year-to-date time period including distributions paid and assuming reinvestment of those distributions. |
2 | Cumulative Distribution Rate for the Funds current fiscal period (January 1, 2014, through April 30, 2014) measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of April 30, 2014. |
3 | Average Annual Total Return represents the simple arithmetic average of the Annual Total Returns of the Fund for the preceding five-year period. Annual Total Return is the percentage change in the Funds NAV over a year including distributions paid and assuming reinvestment of those distributions. |
4 | Average Annual Distribution Rate is the simple arithmetic average of the Annual Distribution Rates for the preceding five-year period. The Annual Distribution Rates are calculated by taking the total distributions paid during the period divided by average daily NAV for the period. |
5 | The Current Annualized Distribution Rate is the current monthly distribution rate annualized as a percentage of the Funds NAV as of April 30, 2014. |
For more information on the Fund, please contact your financial advisor or visit us on the web at www.cbreclarion.com.
As always, we appreciate your investment in the CBRE Clarion Global Real Estate Income Fund.
CBRE Clarion Global Real Estate Income Fund
May 12, 2014
CBRE Clarion Global Real Estate Income Fund
(NYSE: IGR)
CUSIP: 12504G100
Dear Shareholders:
This notice provides detailed information which may assist you and your advisors. This notice is for informational purposes only. No action is required on your part.
CBRE Clarion Global Real Estate Income Fund (the Fund) has declared a monthly distribution of $0.045 per share for the month of June 2014. You are receiving this notice as a requirement of the Funds managed distribution plan. This notice is intended to provide insight into the estimated character of the current (and year-to-date) distribution(s) in terms of income, capital gain, and potential return of capital. You should expect to receive this notice with every distribution. The character of the current (and YTD) distribution(s) will change through the course of the year, as the Funds estimates of the sources of its income become more clear.
The Fund has paid or declared total distribution of $0.27 per share to date in fiscal year 2014 (January 1, 2014 to June 30, 2014). The source of the distribution declared for the month and current fiscal year is estimated as follows:
Estimated Source of Distributions: | ||||||||||||||
Estimated Allocations | ||||||||||||||
Distribution | |
Net Investment Income* |
|
Net Realized Short- Term Capital Gains |
Net Realized Long- Term Capital Gains |
|
Return of Capital |
| ||||||
Current |
$0.045 | $0.023 (52%) | (0%) | (0%) | $0.022 (48%) | |||||||||
YTD |
$0.27 | $0.141 (52%) | (0%) | (0%) | $0.129 (48%) |
* Includes PFIC income, as defined below.
The amounts and sources of distributions reported in this 19(a) Notice are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for accounting and tax reporting purposes will depend upon the Funds investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. THE FUND WILL SEND YOU A FORM 1099-DIV FOR THE CALENDAR YEAR INDICATING HOW TO REPORT FUND DISTRIBUTIONS FOR FEDERAL INCOME TAX PURPOSES.
The Funds dividend policy is established by its Board of Trustees. The dividend is set by the Board at regular intervals with consideration of investment income, realized gains, return of capital by portfolio companies, potential net appreciation of investments in passive foreign investment companies (PFICs), and other net unrealized appreciation and other income expected for the year. Each distribution is expected to be paid from some or all of the following sources: net investment income, realized capital gains and, in certain cases, return of capital. The Funds distribution rate should not be confused with pure income or yield. The Fund strives to establish a level regular dividend that, over the course of the year, will serve to distribute an amount closely approximating the total taxable income of the Fund and all of the returns of capital by portfolio companies received by the Fund during the year.
The Fund invests primarily in real estate investment trusts (REITs) and similar companies. When these companies make distributions during the year, they do not disclose the character of those distributions. The Fund uses historical information to generate the estimated character reflected in this notice. Until the Fund receives information as to the character of distributions it has received from these companies generally around January 31 of the following year it cannot provide a definitive characterization of the source of distributions paid to shareholders.
The Fund invests in certain companies that have been designated as PFICs for purposes of U.S. tax regulations. Increases in the value of these PFICs (PFIC Income) increase the income of the Fund. PFIC Income does not reflect dividends or other income actually received by the Fund, although it does serve to increase the net investment income the Fund is required to distribute. The amount of net Investment Income described in the foregoing table (Estimated Source of Distributions) may include PFIC Income. Decreases in the value of these PFICs (PFIC Losses) offset the other investment income of the Fund. PFIC Losses do not reflect a diminution in the amount of dividends or income actually received by the Fund, although they do serve to reduce the net investment income the Fund is required to distribute. The amount of net investment income in the foregoing table (Estimated Source of Distributions) may have been reduced by PFIC Losses.
The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds investment performance and should not be confused with yield or income.
Shareholders should not draw any conclusions about the Funds investment performance from the amount of this distribution or from the terms of the Funds managed distribution policy. The performance and distribution rate information disclosed in the table below is based on the Funds net asset value (NAV). The Funds NAV is calculated as the total market value of all the securities and other assets held by the Fund minus the total value of its liabilities. Performance figures are not meant to represent individual shareholder performance. The value of a shareholders investment in the Fund is determined by the market price of the Funds shares.
The Funds Cumulative Total Return for fiscal year to date 2014 (January 1, 2014 through May 31, 2014) is set forth below. Shareholders should take note of the relationship between the Cumulative Total Return and the Funds Cumulative Distribution Rate for 2014. Moreover, the Funds Average Annual Total Return for the preceding five-year period (June 1, 2009 through May 31, 2014) is set forth below. Shareholders should take note of the relationship between the Funds Average Annual Total Return and the Funds Current Annualized Distribution Rate, as well as its Average Annual Distribution Rate for the preceding five-year period.
Fund Performance and Distribution Rate Information:
Year-to-date 01/01/2014 to 05/31/2014 |
| |||
Cumulative Total Return1 |
13.48 | % | ||
Cumulative Distribution Rate2 |
2.25 | % | ||
Preceding Five-Year Period 06/01/2009 to 05/31/2014 |
||||
Average Annual Total Return3 |
21.81 | % | ||
Average Annual Distribution Rate4 |
6.48 | % | ||
Current Annualized Distribution Rate5 |
5.39 | % |
1 | Cumulative Total Return is the percentage change in the Funds NAV over the year-to-date time period including distributions paid and assuming reinvestment of those distributions. |
2 | Cumulative Distribution Rate for the Funds current fiscal period (January 1, 2014, through May 31, 2014) measured on the dollar value of distributions in the year-to-date period as a percentage of the Funds NAV as of May 31, 2014. |
3 | Average Annual Total Return represents the simple arithmetic average of the Annual Total Returns of the Fund for the preceding five-year period. Annual Total Return is the percentage change in the Funds NAV over a year including distributions paid and assuming reinvestment of those distributions. |
4 | Average Annual Distribution Rate is the simple arithmetic average of the Annual Distribution Rates for the preceding five-year period. The Annual Distribution Rates are calculated by taking the total distributions paid during the period divided by average daily NAV for the period. |
5 | The Current Annualized Distribution Rate is the current monthly distribution rate annualized as a percentage of the Funds NAV as of May 31, 2014. |
For more information on the Fund, please contact your financial advisor or visit us on the web at www.cbreclarion.com.
As always, we appreciate your investment in the CBRE Clarion Global Real Estate Income Fund.
CBRE Clarion Global Real Estate Income Fund
June 10, 2014
H6/R>=1
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