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: September 30, 2013

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.

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Item 1.

Schedule of Investments.

Attached hereto.

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CBRE Clarion Global Real Estate Income Fund

Portfolio of Investments (unaudited)

September 30, 2013

 

Shares				Market Value ($)
		Real Estate Securities*- 104.5%
		Common Stock - 94.8%
		Australia - 13.3%
5,453,037		CFS Retail Property Trust Group		$	10,197,720
2,776,835		Charter Hall Retail Real Estate Investment Trust			9,762,759
38,529,000		Dexus Property Group			36,206,658
1,410,723		Goodman Group			6,437,188
4,469,500		GPT Group			14,543,630
2,891,127		Westfield Group			29,763,852
12,667,562		Westfield Retail Trust			35,179,052
					142,090,859
		Canada - 9.3%
200,100		Calloway Real Estate Investment Trust			4,740,184
500,000		Crombie Real Estate Investment Trust			6,240,879
1,856,000		H&R Real Estate Investment Trust			38,261,154
2,522,900		InnVest Real Estate Investment Trust			10,185,850
1,698,100		RioCan Real Estate Investment Trust			40,143,817
					99,571,884
		France - 6.8%
65,700		Altarea			10,818,925
351,122		Societe de la Tour Eiffel			23,194,471
158,851		Unibail-Rodamco SE			39,436,277
					73,449,673
		Germany - 1.0%
247,161		GSW Immobilien AG			10,865,150
		Hong Kong - 4.1%
8,913,000		Link REIT (The)			43,730,895
		Japan - 5.4%
840		Activia Properties, Inc.			7,284,994
620		Frontier Real Estate Investment Corp.			6,400,611
14,897		Japan Retail Fund Investment Corp.			30,697,309
189,800		Mitsui Fudosan Co., Ltd.			6,373,411
139,400		Sumitomo Realty & Development Co., Ltd.			6,613,065
					57,369,390
		Netherlands - 3.7%
218,455		Corio NV			9,416,942
447,401		Eurocommercial Properties NV			18,129,375
277,161		Vastned Retail NV			11,803,137
					39,349,454

 

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2013.

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CBRE Clarion Global Real Estate Income Fund

Portfolio of Investments (unaudited) (continued)

September 30, 2013

 

Shares				Market Value ($)
		New Zealand - 0.7%
9,050,000		Goodman Property Trust		$	7,688,502
		Singapore - 6.3%
6,735,000		Ascendas Real Estate Investment Trust			12,238,135
16,748,000		CapitaMall Trust			26,161,451
6,761,600		Global Logistic Properties Ltd.			15,573,639
10,407,000		Mapletree Greater China Commercial Trust (a)			7,423,204
4,757,000		Suntec Real Estate Investment Trust			6,198,601
					67,595,030
		United Kingdom - 5.1%
2,339,300		Land Securities Group Plc			34,814,113
4,045,110		Segro Plc			20,307,007
					55,121,120
		United States - 39.1%
979,167		American Homes 4 Rent (a)(b)			15,813,547
995,353		Brandywine Realty Trust			13,118,753
826,200		Camden Property Trust			50,761,728
666,632		CBL & Associates Properties, Inc.			12,732,671
327,769		General Growth Properties, Inc.			6,322,664
343,515		Health Care REIT, Inc.			21,428,466
748,600		Highwoods Properties, Inc.			26,433,066
1,633,200		Liberty Property Trust			58,141,920
1,183,385		Macerich Co. (The)			66,790,249
1,847,070		OMEGA Healthcare Investors, Inc.			55,171,981
464,731		ProLogis, Inc.			17,483,180
100,000		Regency Centers Corp.			4,835,000
1,040,500		Retail Properties of America, Inc., Class A			14,306,875
44,219		Simon Property Group, Inc.			6,554,582
1,502,887		Spirit Realty Capital, Inc.			13,796,503
1,341,534		UDR, Inc.			31,794,356
63,760		Ventas, Inc.			3,921,240
					419,406,781
		Total Common Stock (cost $833,510,729)			1,016,238,738
		Preferred Stock - 9.7%
		United States - 9.7%
100,000		CBL & Associates Properties, Inc., Series D			2,498,000
320,000		Digital Realty Trust, Inc., Series E			7,673,600
1,050,000		EPR Properties, Series F			22,512,000

 

 

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2013.

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CBRE Clarion Global Real Estate Income Fund

Portfolio of Investments (unaudited) (concluded)

September 30, 2013

 

Shares				Market Value ($)
444,300		General Growth Properties, Inc., Series A		$	9,761,271
319,479		Glimcher Realty Trust, Series G			8,025,313
150,000		iStar Financial, Inc., Series F			3,514,500
765,000		iStar Financial, Inc., Series I			17,281,350
192,468		LaSalle Hotel Properties, Series G			4,716,428
400,000		LaSalle Hotel Properties, Series I			8,500,000
268,000		Pebblebrook Hotel Trust, Series A			6,927,800
272,000		Pennsylvania Real Estate Investment Trust, Series B			6,506,240
280,000		Urstadt Biddle Properties, Inc., Series F			6,703,200
		Total Preferred Stock (cost $105,249,399)			104,619,702
		Total Investments - 104.5% (cost $938,760,128)			1,120,858,440
		Liabilities in Excess of Other Assets - (4.5)%			(48,571,946	)
		Net Assets - 100.0%		$	1,072,286,494

 

*	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.

(b)	Securities are exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions that are exempt from registration, normally to qualified institutional buyers. At September 30, 2013, the securities amounted to $15,813,547 or 1.5% of net assets.

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2013.

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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 September 30, 2013 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		$	142,090,859			$	-			$	-			$	142,090,859
Canada			99,571,884				–				–				99,571,884
France			73,449,673				–				–				73,449,673
Germany			10,865,150				–				–				10,865,150
Hong Kong			43,730,895				–				–				43,730,895
Japan			57,369,390				–				–				57,369,390
Netherlands			39,349,454				–				–				39,349,454
New Zealand			7,688,502				–				–				7,688,502
Singapore			67,595,030				–				–				67,595,030
United Kingdom			55,121,120				–				–				55,121,120
United States			403,593,234				15,813,547				–				419,406,781
Total Common Stocks			1,000,425,191				15,813,547				–				1,016,238,738
Preferred Stocks
United States			93,397,034				11,222,668				–				104,619,702
Total Investments in Real Estate Securities			1,093,822,225				27,036,215				–				1,120,858,440

 

 

See previously submitted notes to financial statements for the semi-annual period ended June 30, 2013.

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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, 2012 was $1,560,345 and $1,098,780,927, respectively. $19,967,520 was transferred out of Level 1 into Level 2 during the period ended September 30, 2013 as a result of exchange closing prices not being available. With regard to the transfers from Level 1 into Level 2, an evaluated mean price was still obtained from the Trust’s third party pricing vendor. Pursuant to the Trust’s fair value procedures noted previously, equity securities (including exchange traded securities and open-end regulated investment companies) 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.

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:

 

		Common Stocks/Preferred Stocks
Balance as of December 31, 2012		$	19,791,655
Realized gain (loss)			(13,637,098	)
Change in unrealized appreciation (depreciation)			13,708,310
Purchases			—
Sales			(9,862,862	)
Transfers in and/or out of Level 3			(10,000,005	) *
Balance as of September 30, 2013		$	—

*	Transferred out of Level 3 due to availability of observable pricing inputs.

For the quarter ended September 30, 2013, there have been no significant changes to the Trust’s fair valuation methodology.

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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.

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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:		November 22, 2013

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:		November 22, 2013
By:		/s/    Jonathan A. Blome
Name:		Jonathan A. Blome
Title:		Chief Financial Officer
Date:		November 22, 2013