UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
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)
Registrant’s telephone number, including area code: 1-888-711-4272
Date of fiscal year end: December 31
Date of reporting period: March 31, 2014
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
| Item 1. | Schedule of Investments. |
Attached hereto.
CBRE Clarion Global Real Estate Income Fund
Portfolio of Investments (unaudited)
March 31, 2014
| Shares |
|
Market Value ($) |
||||
| Real Estate Securities* - 104.8% | ||||||
| Common Stock - 94.9% | ||||||
| Australia - 8.9% | ||||||
| 536,929 |
Charter Hall Group | $ | 1,985,634 | |||
| 38,529,000 |
Dexus Property Group | 37,853,248 | ||||
| 5,338,800 |
Federation Centres, Ltd. | 11,677,912 | ||||
| 1,410,723 |
Goodman Group | 6,184,612 | ||||
| 1,769,500 |
GPT Group | 6,002,625 | ||||
| 12,667,562 |
Westfield Retail Trust | 34,987,979 | ||||
|
|
|
|||||
| 98,692,010 | ||||||
|
|
|
|||||
| Canada - 9.2% | ||||||
| 200,100 |
Calloway Real Estate Investment Trust | 4,670,057 | ||||
| 500,000 |
Crombie Real Estate Investment Trust | 6,038,505 | ||||
| 1,856,000 |
H&R Real Estate Investment Trust | 38,440,009 | ||||
| 2,522,900 |
InnVest Real Estate Investment Trust | 12,091,634 | ||||
| 1,698,100 |
RioCan Real Estate Investment Trust | 40,969,788 | ||||
|
|
|
|||||
| 102,209,993 | ||||||
|
|
|
|||||
| France - 7.0% | ||||||
| 65,700 |
Altarea | 11,939,149 | ||||
| 351,122 |
Societe de la Tour Eiffel | 24,104,740 | ||||
| 158,851 |
Unibail-Rodamco SE | 41,269,496 | ||||
|
|
|
|||||
| 77,313,385 | ||||||
|
|
|
|||||
| Germany - 1.2% | ||||||
| 630,260 |
Deutsche Wohnen AG (a) | 13,168,818 | ||||
|
|
|
|||||
| Hong Kong - 4.0% | ||||||
| 8,913,000 |
Link REIT (The) | 43,835,086 | ||||
|
|
|
|||||
| Japan - 6.7% | ||||||
| 840 |
Activia Properties, Inc. | 6,761,762 | ||||
| 1,240 |
Frontier Real Estate Investment Corp. | 6,610,283 | ||||
| 18,897 |
Japan Retail Fund Investment Corp. | 37,285,725 | ||||
| 385,800 |
Mitsui Fudosan Co., Ltd. | 11,796,710 | ||||
| 281,400 |
Sumitomo Realty & Development Co., Ltd. | 11,044,509 | ||||
|
|
|
|||||
| 73,498,989 | ||||||
|
|
|
|||||
| Netherlands - 4.2% | ||||||
| 218,455 |
Corio NV | 9,987,006 | ||||
| 528,401 |
Eurocommercial Properties NV | 23,228,122 | ||||
| 277,161 |
Vastned Retail NV | 13,654,484 | ||||
|
|
|
|||||
| 46,869,612 | ||||||
|
|
|
|||||
See previously submitted notes to financial statements for the annual period ended December 31, 2013.
CBRE Clarion Global Real Estate Income Fund
Portfolio of Investments (unaudited) (continued)
March 31, 2014
| Shares |
|
Market Value ($) |
||||
| New Zealand - 0.7% | ||||||
| 9,050,000 |
Goodman Property Trust | $ | 7,539,010 | |||
|
|
|
|||||
| Singapore - 4.2% | ||||||
| 6,735,000 |
Ascendas Real Estate Investment Trust | 12,103,773 | ||||
| 10,075,000 |
CapitaCommercial Trust | 11,897,241 | ||||
| 5,109,700 |
Global Logistic Properties, Ltd. | 10,767,528 | ||||
| 8,677,000 |
Suntec Real Estate Investment Trust | 11,453,875 | ||||
|
|
|
|||||
| 46,222,417 | ||||||
|
|
|
|||||
| United Kingdom - 5.4% | ||||||
| 2,839,300 |
Land Securities Group Plc | 48,329,437 | ||||
| 2,045,110 |
Segro Plc | 11,319,558 | ||||
|
|
|
|||||
| 59,648,995 | ||||||
|
|
|
|||||
| United States - 43.4% | ||||||
| 979,167 |
American Homes 4 Rent | 16,361,881 | ||||
| 134,400 |
AvalonBay Communities, Inc. | 17,649,408 | ||||
| 995,353 |
Brandywine Realty Trust | 14,392,804 | ||||
| 583,200 |
Camden Property Trust | 39,272,688 | ||||
| 666,632 |
CBL & Associates Properties, Inc. | 11,832,718 | ||||
| 548,269 |
General Growth Properties, Inc. | 12,061,918 | ||||
| 414,515 |
Health Care REIT, Inc. | 24,705,094 | ||||
| 748,600 |
Highwoods Properties, Inc. | 28,753,726 | ||||
| 1,720,500 |
Host Hotels & Resorts, Inc. | 34,822,920 | ||||
| 1,633,200 |
Liberty Property Trust | 60,363,072 | ||||
| 949,785 |
Macerich Co. (The) | 59,200,099 | ||||
| 890,370 |
OMEGA Healthcare Investors, Inc. | 29,845,203 | ||||
| 595,531 |
Prologis, Inc. | 24,315,531 | ||||
| 100,000 |
Regency Centers Corp. | 5,106,000 | ||||
| 1,040,500 |
Retail Properties of America, Inc., Class A | 14,088,370 | ||||
| 2,680,587 |
Spirit Realty Capital, Inc. | 29,432,845 | ||||
| 210,800 |
Starwood Hotels & Resorts Worldwide, Inc. | 16,779,680 | ||||
| 1,561,834 |
UDR, Inc. | 40,342,172 | ||||
|
|
|
|||||
| 479,326,129 | ||||||
|
|
|
|||||
| Total Common Stock (cost $858,212,837) |
1,048,324,444 | |||||
|
|
|
|||||
See previously submitted notes to financial statements for the annual period ended December 31, 2013.
CBRE Clarion Global Real Estate Income Fund
Portfolio of Investments (unaudited) (concluded)
March 31, 2014
| Shares |
|
Market Value ($) |
||||
| Preferred Stock - 9.9% | ||||||
| United States - 9.9% | ||||||
| 100,000 |
CBL & Associates Properties, Inc., Series D | $ | 2,513,000 | |||
| 320,000 |
Digital Realty Trust, Inc., Series E | 7,798,400 | ||||
| 1,050,000 |
EPR Properties, Series F | 25,053,000 | ||||
| 444,300 |
General Growth Properties, Inc., Series A | 10,312,203 | ||||
| 319,479 |
Glimcher Realty Trust, Series G | 8,047,676 | ||||
| 150,000 |
iStar Financial, Inc., Series F | 3,555,000 | ||||
| 765,000 |
iStar Financial, Inc., Series I | 17,748,000 | ||||
| 192,468 |
LaSalle Hotel Properties, Series G | 4,880,989 | ||||
| 400,000 |
LaSalle Hotel Properties, Series I | 8,904,000 | ||||
| 268,000 |
Pebblebrook Hotel Trust, Series A | 6,949,240 | ||||
| 272,000 |
Pennsylvania Real Estate Investment Trust, Series B |
6,813,600 | ||||
| 280,000 |
Urstadt Biddle Properties, Inc., Series F | 6,874,000 | ||||
|
|
|
|||||
| Total Preferred Stock (cost $105,249,400) |
109,449,108 | |||||
|
|
|
|||||
| Total Investments - 104.8% (cost $963,462,237) |
1,157,773,552 | |||||
|
|
|
|
||||
| Liabilities in Excess of Other Assets - (4.8)% | (53,209,913 | ) | ||||
|
|
|
|
||||
| Net Assets - 100.0% | $ | 1,104,563,639 | ||||
|
|
|
|
||||
| * | Include U.S. Real Estate Investment Trusts (“REIT”) and Real Estate Operating Companies (“REOC”) as well as entities similarly formed under the laws of non-U.S. Countries. |
| (a) | Non-income producing security. |
See previously submitted notes to financial statements for the annual period ended December 31, 2013.
Notes to Portfolio of Investments (unaudited)
(A) Fair Value
GAAP provides guidance on fair value measurements. In accordance with the standard, fair value is defined as the price that the Trust would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. It establishes a single definition of fair value, creates a three-tier hierarchy as a framework for measuring fair value based on inputs used to value the Trust’s investments, and requires additional disclosure about fair value. The hierarchy of inputs is summarized below:
| • | Level 1 — unadjusted quoted prices in active markets for identical investments |
| • | Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| • | Level 3 — significant unobservable inputs (including the Trust’s own assumptions in determining the fair value of investments) |
For Level 1 inputs, the Trust uses unadjusted quoted prices in active markets for assets or liabilities with sufficient frequency and volume to provide pricing information as the most reliable evidence of fair value.
The Trust’s Level 2 valuation techniques include inputs other than quoted prices within Level 1 that are observable for an asset or liability, either directly or indirectly. Level 2 observable inputs may include quoted prices for similar assets and liabilities in active markets or quoted prices for identical or similar assets or liabilities in markets that are not active in which there are few transactions, the prices are not current, or price quotations vary substantially over time or among market participants. Inputs that are observable for the asset or liability in Level 2 include such factors as interest rates, yield curves, prepayment speeds, credit risk, and default rates for similar liabilities.
For Level 3 valuation techniques, the Trust uses unobservable inputs that reflect assumptions market participants would be expected to use in pricing the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available and are developed based on the best information available under the circumstances. In developing unobservable inputs, market participant assumptions are used if they are reasonably available without undue cost and effort.
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used as of March 31, 2014 in valuing the Trust’s investments carried at fair value:
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| Investments in Real Estate Securities |
||||||||||||||||
| Common Stocks |
||||||||||||||||
| Australia |
$ | 98,692,010 | $ | - | $ | - | $ | 98,692,010 | ||||||||
| Canada |
102,209,993 | – | – | 102,209,993 | ||||||||||||
| France |
77,313,385 | – | – | 77,313,385 | ||||||||||||
| Germany |
13,168,818 | – | – | 13,168,818 | ||||||||||||
| Hong Kong |
43,835,086 | – | – | 43,835,086 | ||||||||||||
| Japan |
73,498,989 | – | – | 73,498,989 | ||||||||||||
| Netherlands |
46,869,612 | – | – | 46,869,612 | ||||||||||||
| New Zealand |
7,539,010 | – | – | 7,539,010 | ||||||||||||
| Singapore |
46,222,417 | – | – | 46,222,417 | ||||||||||||
| United Kingdom |
59,648,995 | – | – | 59,648,995 | ||||||||||||
| United States |
479,326,129 | – | – | 479,326,129 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Common Stocks |
1,048,324,444 | – | – | 1,048,324,444 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Preferred Stocks |
||||||||||||||||
| United States |
109,449,108 | – | – | 109,449,108 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Total Investments in Real Estate Securities |
1,157,773,552 | – | – | 1,157,773,552 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
See previously submitted notes to financial statements for the annual period ended December 31, 2013.
Notes to Portfolio of Investments (unaudited) (continued)
The primary third party pricing vendor for the Trust’s listed preferred stock investments is FT Interactive Data (“IDC”). When available, the Trust will obtain a closing exchange price to value the preferred stock investments and, in such instances, the investment will be classified as Level 1 since an unadjusted quoted price was utilized. When a closing price is not available for the listed preferred stock investments, IDC will produce an evaluated mean price (midpoint between the bid and the ask evaluation) and such investments will be classified as Level 2 since other observable inputs were used in the valuation. Factors used in the IDC evaluation include trading activity, the presence of a two-sided market, and other relevant market data.
The Trust’s policy is to recognize transfers in and transfers out at the fair value as of the beginning of the period. The portfolio may hold securities which are periodically fair valued in accordance with the Trust’s fair value procedures. This may result in movements between Levels 1, 2 and 3 throughout the period. The fair value of Level 2 and Level 1 investments at December 31, 2013 was $0 and $1,125,342,372, respectively. There were no transfers between Level 2 or Level 1 during the period ended March 31, 2014. Pursuant to the Trust’s fair value procedures noted previously, equity securities (including exchange traded securities and open-end regulated investment companies) and exchange traded derivatives (i.e. futures contracts and options) are generally categorized as Level 1 securities in the fair value hierarchy. Fixed income securities, non-exchange traded derivatives and money market instruments are generally categorized as Level 2 securities in the fair value hierarchy. Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.
For the quarter ended March 31, 2014, there have been no significant changes to the Trust’s fair valuation methodology.
See previously submitted notes to financial statements for the annual period ended December 31, 2013.
| Item 2. | Controls and Procedures. |
| (a) | The Trust’s principal executive officer and principal financial officer have evaluated the Trust’s disclosure controls and procedures within 90 days of this filing and have concluded that the Trust’s 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-Q was recorded, processed, summarized, and reported timely. |
| (b) | The Trust’s principal executive officer and principal financial officer are aware of no changes in the Trust’s internal control over financial reporting that occurred during the Trust’s most recent quarter that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting. |
| Item 3. | Exhibits. |
Certification of chief executive officer and chief financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) CBRE Clarion Global Real Estate Income Fund
| By: | /s/ T. Ritson Ferguson | |
| Name: | T. Ritson Ferguson | |
| Title: | President and Chief Executive Officer | |
| Date: | May 20, 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: | /s/ T. Ritson Ferguson | |
| Name: | T. Ritson Ferguson | |
| Title: | President and Chief Executive Officer | |
| Date: | May 20, 2014 | |
| By: | /s/ Jonathan A. Blome | |
| Name: | Jonathan A. Blome | |
| Title: | Chief Financial Officer | |
| Date: | May 20, 2014 | |