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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)

Registrant’s telephone number, including area code:  1-877-711-4272

Date of fiscal year end:  December 31

Date of reporting period:  December 31, 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.

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Item 1. Reports to Stockholders.

The Report to Shareholders of CBRE Clarion Global Real Estate Income Fund (the “Trust”) is attached herewith.

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CBRE CLARION GLOBAL REAL ESTATE

INCOME FUND

Annual Report for the Year Ended December 31, 2014

 

 

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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 Trust’s 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 Trust’s Net Asset Value (“NAV”) will approximately equal the Trust’s 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 Trust’s requirement to pay out all taxable income (including amounts representing return of capital paid by portfolio companies) with a minimum of special distributions. The Trust’s total return in relation to changes in NAV is presented in the financial highlights table. Shareholders should not draw any conclusions about the Trust’s investment performance from the amount of the current distribution or from the terms of the Trust’s managed distribution policy. The Board may amend or terminate the managed distribution policy without prior notice to Trust shareholders.

Shareholders should note that the Trust’s 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 Trust’s risks.

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CBRE CLARION GLOBAL REAL ESTATE INCOME FUND ANNUAL REPORT 2014

 

Letter to Shareholders			2
Portfolio of Investments			9
Financial Statements			11
Notes to Financial Statements			16
Supplemental Information (unaudited)			23

 

Investors should consider a fund’s 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 Fund’s investment return and principal value will fluctuate so that an investor’s 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 fund’s portfolio. There is no assurance that the Fund will achieve its investment objective.

 

ANNUAL REPORT 2014		1

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Letter to Shareholders

 

(1)

The S&P Developed Property Index is an unmanaged market-weighted total return index which consists of over 350 real estate companies from 22 developed markets with a free float total market capitalization of at least U.S. $100 million that derive more than 60% of their revenue from real estate development, management, rental and/or direct investment in physical property.

 

(2)	The MSCI REIT Preferred Index is a preferred stock market capitalization weighted index of all exchange traded preferred securities of equity REITs.

 

(3)	We include the return of this “blended index” as a reference point, since the Trust invests in both common and preferred stocks issued by listed property companies. The Trust does not have a formal performance benchmark.

 

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The Trust’s dividend is established by the Board at regular intervals with consideration of the portfolio’s projected total dividends received, level of investment income, potential capital appreciation, and market conditions. The Board strives to establish a level monthly dividend that, by the end of the year, satisfies the requirement (under applicable tax regulations) to distribute all income and realized gains, with a minimum of special distributions. The Board also expects to distribute the majority of dividends received regardless of the tax character of those receipts. In 2014, due to a number of favorable factors affecting the characterization of dividends received (including the ability to shelter realized capital gains with tax losses carried forward from past periods) a portion of this year’s dividends were characterized as return of capital and not subject to current taxation. There is no guarantee that this characterization will continue in this way and we encourage investors to refer to our regular disclosures about the expected character of our dividends for more information during the year. Based on anticipated income and expected gains in global property company stocks in 2015, the Board has decided to maintain the monthly dividend at the current level rate of $0.045 per share. The Board continues to review the sustainability of the Trust’s regular monthly dividend in light of the current market environment.

Portfolio Review

The Trust’s investments remain well-diversified by property type and geography as shown in the pie charts below. We made some changes to the geographic mix of the portfolio during the past twelve months. At December 31, the Trust’s portfolio was 52% invested in common stock within the Americas region, 17% in Europe, 23% in Asia-Pacific, with 8% invested in preferred stock of US real estate companies. During the course of the year, exposure to U.S. common stocks was increased by approximately 5%, offset by reductions in Australia (-4% to 8%) and Canada (-2% to 7%). The Trust’s exposure to Continental European property stocks was modestly trimmed during the year (-3% to 9%) as concerns increased regarding the trajectory of economic recovery in the euro zone. We rotated the capital harvested from some very successful investments from Continental Europe to the U.K. (+2% to 7%), where real estate values are rising more rapidly, property fundamentals are improving more visibly, and economic conditions remain generally healthy. Overall the Trust continues to be underexposed to the Asia-Pacific region, characterized by material underweights to Japan and Hong Kong. Australian property stocks performed very well in local currency terms in 2014, so we trimmed our overweight position there (-4% to 8%) to help fund the upweight to U.S. common stocks. By property type, we continue to favor retail properties, including top-quality malls and shopping centers, where cash flow growth benefits from economic recovery cycles. A number of the portfolio’s investments in owners of high-quality properties in the Asia-Pacific region show up under the diversified property type as 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 will continue, particularly in the U.S.

 

Geographic Diversification		Sector Diversification

Source CBRE Clarion Securities as of 12/31/2014. Geographic and Sector diversification are unaudited. Percentages presented are based on managed Fund 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.

 

 

ANNUAL REPORT 2014		3

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Market Commentary 4Q 2014

Real Estate Stocks Delivered Exceptional Performance

Global property stocks finished the year with strong absolute returns in the fourth quarter, thereby generating double digit total return in 2014 and handily exceeding the performance generated by broad equities and fixed income indices. Interest rates and inflationary pressures remained low – lower than what was expected at the beginning of the year. Positive total returns were generated in each of the major geographic regions for the quarter and year, with the U.S. REIT market being a stand-out with total return of approximately 30% for the year, about half of which was generated during the fourth quarter. Performance among European property companies and those in the Asia-Pacific region were also positive for the year, although returns varied widely by country. Property company returns were strong for a number of reasons including attractive and rising dividends, strong earnings growth via both organic as well as external growth and rising real estate values during the year. Other positive factors contributing to REITs’ positive returns in 2014 included improved balance sheets (average debt to total enterprise value globally is now a fairly low 31%) and access to attractively priced capital (both equity and debt).

 

Global Real Estate Performance (in USD) by Country* as of December 31, 2014

Region/Country		2013				2014
World			5.9	%			15.2	%
North America			2.3				28.1
Canada			-6.1				<0.1
United States			2.8				29.6
Europe			15.7				8.7
Continental Europe			10.3				6.1
United Kingdom			25.7				13.2
Asia-Pacific			6.7				2.6
Australia			-6.2				16.9
Hong Kong			-6.6				17.1
Japan			29.3				-10.9
Singapore			-8.5				4.7

Source:    S&P Developed Property Index as of 12/31/2014.

*	Please note that not all countries are displayed. Past performance is no guarantee of future results.

Earnings Growth Was As Expected in 2014 – A Solid “Normal” 7%

Listed property companies’ earnings grew as economic conditions and property fundamentals gradually improved. Earnings growth came from a combination of “internal” growth (i.e., organic growth derived from higher occupancies and rising rents) and “external” growth, which includes value-adding acquisitions, development and re-development activities. We expect earnings growth to continue at a similar pace for the next two years as well. Dividends also were increased at approximately the rate of earnings growth, which is a trend we expect to continue.

 

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Regional Earnings Growth

Source:    CBRE Clarion as of 12/31/2014. Information is the opinion of CBRE Clarion, which is subject to change and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. “e” refers to estimates, “f” refers to “forecasts”. Forecasts and the factors noted are not indicative of future investment performance.

Listed Property Sector Grew Again in 2014

The listed property sector continues to grow, albeit at a slightly slower pace than in 2013. Real estate companies issued over $44 billion of equity globally in 2014, down from $57 billion raised in 2013. Approximately $27 billion was raised through the issuance of new equity by existing listed companies. Another $17 billion of equity was raised by new real estate companies via their Initial Public Offerings (IPOs). Capital raising occurred all around the globe, with approximately half raised by U.S. REITs.

 

Regional Equity Issuance

Source:    CBRE Clarion as of 12/31/2014.

*2013 includes the listing of COLE Real Estate Investments non-traded shares

Information is the opinion of CBRE Clarion as which is subject to change and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. Forecasts and any factors discussed are not indicative of future investment performance. Past performance is no guarantee of future result.

 

 

ANNUAL REPORT 2014		5

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2015 Outlook

We Expect Attractive Total Returns for Property Stocks in 2015

We expect real estate stock returns to be more muted in 2015 but still good, driven by a well-supported dividend yield, 6-7% cash flow per share growth and stable earnings multiples. Real estate stocks continue to benefit from a favorable environment of continued low interest rates, limited new supply, and improving demand for real estate space, leading to higher occupancies, rising rents and growing cash flows. In this environment, and with long-term interest rates likely to stay low by historical standards, we expect real estate values to grow again in 2015.

We Expect Dividend Growth To Be Strong Again in 2015

Current income generated by listed property’s dividend yield remains a defining investment characteristic of the sector. Listed property companies’ dividend yield currently averages 3-4% globally and is growing. We project average dividend growth to be in line with earnings in 2015 of approximately 7%, driven by a combination of improving company cash flows as well as an expansion of dividend payout policies which remain conservative. Increasing dividends are emblematic of healthy companies in improving markets.

Listed Real Estate Values Are Reasonable Versus the Private Markets

Rising real estate values explain the majority of the increase in property share prices last year. We estimate that property values rose approximately 12% on a global basis during 2014 as the result of rising earnings growth, increased investor demand for real estate (and a willingness to accept lower going-in returns), and limited new supply of real estate. Rising real estate values together with a dividend yield of 3-4% easily explain how property share total returns reached the mid-teens. Yet, listed property companies globally still trade at valuations very much in line with our estimates of the private market value of the real estate they own. In fact, our estimates show that listed property companies on average trade at a modest discount (-3%) to estimated private market values or net asset value (NAV).

 

NAV Premium/Discount

Information is the opinion of CBRE Clarion as of 12/31/2014, 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.

 

 

6		CBRE CLARION GLOBAL REAL ESTATE INCOME FUND

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Driven By Continued Economic Growth, the Outlook for Real Estate Remains Positive

We believe the economic and real estate cycle will remain in a recovery stage that has several years further to run. As shown in the graph below, property stock returns tend to turn down a year or so prior to a dramatic slowdown in economic growth or prior to recessions. Given the forecast for continued economic expansion in most parts of the world, it is difficult to develop a bear case for property stocks. Economic growth is expanding in most developed markets around the globe, although the rate of improvement varies. Growth is relatively robust in the U.S. and U.K., tepid in the Eurozone and Japan, and still strongly positive (but decelerating) in China. The fall in the price of oil, which fell below $50/barrel (less than half of what it was six months ago) is expected to be a net positive for most of the world’s developed countries and to keep inflation down in 2015. That said, some areas of the world’s economy will be negatively impacted by lower oil prices, including energy exporting countries and regions. Economic recovery has been more gradual during this cycle, which suggests that it may be more elongated, since it is taking longer to reach full economic capacity and employment, even in the U.S. As real estate investors and analysts, we see bottom-up property fundamentals which reflect an industry which is still catching up to improving economic conditions. Interest rates appear to be “lower for longer” providing a supportive framework for sustained and continued improvement in real estate cash flows and positive real estate returns that may persist for several more years.

 

REIT Returns and Economic Growth

Source:    International Monetary Fund as of 09/30/2014 and MSCI U.S. REIT Index as of 12/31/2014.

Information is the opinion of CBRE Clarion, which is subject to change and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. Forecasts and the factors noted are not indicative of future investment performance.

Long-Term Interest Rates Will Remain Low Even As Some Central Banks Raise Short-Term Rates

The synchronization of central bank policy is changing. Central banks in the U.S. and U.K. are inclined to raise short-term rates in response to strengthening economic conditions while central banks in the Eurozone and Japan need to keep rates low to avoid deflation. The rate that arguably matters the most is the U.S. long-term rate (e.g., 10 year Treasury) which we expect will stay low given the easing policies elsewhere in the world and the overall weak global economic growth. Many market observers are calling for a “new normal” of long-term rates well below those observed in the late 20th century. Inflationary pressures remain low, aided by a softening in the price of commodities, particularly a lower price of oil. The combination of slow and steady economic growth and low long-term interest rates bodes well for real estate and real estate securities, which generate a material component of total return from current yield.

 

 

ANNUAL REPORT 2014		7

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We believe that global property stocks continue to offer investors an attractive investment option, anchored by current yield via a growing dividend and underpinned by increasing real estate cash flows derived from improving economic and commercial property fundamentals.

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

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 management’s 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.

 

8		CBRE CLARION GLOBAL REAL ESTATE INCOME FUND

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Portfolio of Investments

December 31, 2014

 

See notes to financial statements.

 

ANNUAL REPORT 2014		9

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Portfolio of Investments concluded

 

See notes to financial statements.

 

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Statement of Assets and Liabilities

				December 31, 2014
Assets
Investments, at value (cost $997,920,505)					$1,276,998,530
Cash and cash equivalents (including foreign currency of $153,231 with a cost of $153,231)					929,481
Receivable for investment securities sold					95,604,890
Unrealized appreciation on spot contracts					12,309
Dividends and interest receivable					6,944,751
Dividend withholding reclaims receivable					506,067
Other assets					117,476
Total Assets					1,381,113,504
Liabilities
Line of credit payable					125,923,000
Payable for investment securities purchased					68,326,915
Unrealized depreciation on spot contracts					59,331
Management fee payable					937,904
Due to custodian					776,150
Accrued expenses					378,205
Total Liabilities					196,401,505
Net Assets					$1,184,711,999
Composition of Net Assets
$0.001 par value per share; unlimited number of shares authorized, 116,590,494 shares issued and outstanding					$116,590
Additional paid-in capital					1,297,453,644
Distributions in excess of net investment income					(47,462,964	)
Accumulated net realized loss on investments, written options, swap contracts and foreign currency transactions					(342,839,290	)
Net unrealized appreciation on investments and foreign currency denominated assets and liabilities					277,444,019
Net Assets					$1,184,711,999
Net Asset Value (based on 116,590,494 shares outstanding)					$10.16

 

See notes to financial statements.

 

ANNUAL REPORT 2014		11

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Statement of Operations

				For the Year Ended December 31, 2014
Investment Income
Dividends (net of foreign withholding taxes of $3,211,654)					$47,649,631
Interest					196
Total Investment Income					47,649,827
Expenses
Management fees					10,367,793
Interest expense on line of credit					690,305
Printing and mailing fees					585,315
Administration fees					259,281
Custodian fees					203,542
Transfer agent fees					194,860
Insurance fees					164,613
Trustees’ fees and expenses					162,162
NYSE listing fee					108,429
Legal fees					102,447
Audit and tax fees					70,999
Miscellaneous expenses					31,391
Total Expenses					12,941,137
Net Investment Income					34,708,690
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency Transactions
Net realized gain (loss) on:
Investments					38,624,584
Foreign currency transactions					(337,709	)
Total Net Realized Gain					38,286,875
Net change in unrealized appreciation (depreciation) on:
Investments					121,241,150
Foreign currency denominated assets and liabilities					(100,972	)
Total Net Change in Unrealized Appreciation (Depreciation)					121,140,178
Net Realized and Unrealized Gain on Investments and Foreign Currency Transactions					159,427,053
Net Increase in Net Assets Resulting from Operations					$194,135,743

 

See notes to financial statements.

 

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Statements of Changes in Net Assets

				For the Year Ended December 31, 2014						For the Year Ended December 31, 2013
Change in Net Assets Resulting from Operations
Net investment income				$	34,708,690					$	38,303,062
Net realized gain on investments, written options and foreign currency transactions					38,286,875						13,397,490
Net change in unrealized appreciation (depreciation) on investments, written options and foreign currency denominated assets and liabilities					121,140,178						(40,203,214	)
Net increase in net assets resulting from operations					194,135,743						11,497,338
Dividends and Distributions on Common Shares
Distribution of net investment income					(46,220,728	)					(44,911,599	)
Distribution of return of capital					(16,738,139	)					(18,047,268	)
Total dividends and distributions on Common Shares					(62,958,867	)					(62,958,867	)
Net Increase (Decrease) in Net Assets					131,176,876						(51,461,529	)
Net Assets
Beginning of year					1,053,535,123						1,104,996,652
End of year (net of distributions in excess of net investment income of $47,462,964 and $75,565,040, respectively)				$	1,184,711,999					$	1,053,535,123

 

See notes to financial statements.

 

ANNUAL REPORT 2014		13

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Statement of Cash Flows

				For the Year Ended December 31, 2014
Cash Flows from Operating Activities:
Net increase in net assets resulting from operations				$	194,135,743
Adjustments to Reconcile Net Increase in Net Assets Resulting from Operations to Net Cash Used In Operating Activities:
Net change in unrealized appreciation/depreciation on investments					(121,241,150	)
Net realized gain on investments					(38,624,584	)
Cost of securities purchased					(259,581,343	)
Proceeds from sale of securities					267,790,919
Increase in receivable for investment securities sold					(52,642,695	)
Increase in dividends and interest receivable					(596,674	)
Increase in dividend withholding reclaims receivable					(458,905	)
Increase in unrealized appreciation on spot contracts					(12,309	)
Decrease in other assets					952
Increase in payable for investment securities purchased					7,010,227
Increase in unrealized depreciation on spot contracts					46,462
Increase in management fee payable					141,783
Increase in due to custodian					776,150
Decrease in accrued expenses					(51,791	)
Net Cash Used in Operating Activities					(3,307,215	)
Cash Flows From Financing Activities:
Cash distributions paid on common shares					(62,958,867	)
Proceeds from borrowing on line of credit					173,340,500
Payments on line of credit borrowings					(106,145,000	)
Net Cash Provided by Financing Activities					4,236,633
Net increase in cash					929,418
Cash and Cash Equivalents at Beginning of Year					63
Cash and Cash Equivalents at End of Year				$	929,481
Supplemental disclosure
Interest paid on line of credit borrowings				$	639,827

 

See notes to financial statements.

 

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Financial Highlights

Per share operating performance for a share outstanding throughout the year				For the Year Ended December 31, 2014						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
Net asset value, beginning of year				$	9.04					$	9.48					$	8.14					$	8.58							$	7.51
Income from investment operations
Net investment income (1)					0.30						0.33						0.33						0.34								0.36
Net realized and unrealized gain (loss) on investments, written options, swap contracts and foreign currency transactions					1.36						(0.23	)					1.59						(0.24	)							1.25
Total from investment operations					1.66						0.10						1.92						0.10								1.61
Dividends and distributions on Common Shares
Net investment income					(0.40	)					(0.39	)					(0.58	)					(0.33	)							(0.54	)
Return of capital					(0.14	)					(0.15	)					—						(0.21	)							—
Total dividends and distributions to Common Shareholders					(0.54	)					(0.54	)					(0.58	)					(0.54	)							(0.54	)
Net asset value, end of year				$	10.16					$	9.04					$	9.48					$	8.14							$	8.58
Market value, end of year				$	8.99					$	7.92					$	8.86					$	6.84							$	7.75
Total investment return (2)
Net asset value					18.73	%					0.91	%					24.15	%					0.94	%							22.41	%
Market value					20.74	%					(4.93	)%					38.77	%					(5.38	)%							31.06	%
Ratios and supplemental data
Net assets, applicable to Common Shares, end of year (thousands)				$	1,184,712					$	1,053,535					$	1,104,997					$	949,576							$	1,000,238
Ratios to average net assets applicable to Common Shares of: Net expenses, after fee waiver					1.14	%					1.06	%(3)					0.99	%					1.03	%							0.94	%
Net expenses, before fee waiver					1.14	%					1.07	%(3)					1.05	%					1.14	%							1.11	%
Net expenses, after the fee waiver excluding interest on line of credit					1.08	%					1.04	%(3)					0.98	%					0.97	%							0.90	%
Net expenses, before the fee waiver excluding interest on line of credit					1.08	%					1.04	%(3)					1.04	%					1.09	%							1.07	%
Net investment income					3.05	%					3.43	%					3.68	%					3.98	%							4.60	%
Portfolio turnover rate					21.27	%					11.38	%					14.42	%					1.53	%							12.91	%

 

(1)	Based on average shares outstanding.

 

(2)

Total investment return does not reflect brokerage commissions. Dividends and distributions are assumed to be reinvested at the prices obtained under the Trust’s Dividend Reinvestment Plan. Net Asset Value (“NAV”) total return is calculated assuming reinvestment of distributions at NAV on the date of the distribution.

 

(3)	Effective February 28, 2013, the investment management fee waiver agreement expired.

 

See notes to financial statements.

 

ANNUAL REPORT 2014		15

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Notes to Financial Statements

 

16		CBRE CLARION GLOBAL REAL ESTATE INCOME FUND

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ANNUAL REPORT 2014		17

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18		CBRE CLARION GLOBAL REAL ESTATE INCOME FUND

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ANNUAL REPORT 2014		19

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20		CBRE CLARION GLOBAL REAL ESTATE INCOME FUND

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ANNUAL REPORT 2014		21

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Report of Independent Registered Public Accounting Firm

The Shareholders and Board of Trustees of

CBRE Clarion Global Real Estate Income Fund:

We have audited the accompanying statement of assets and liabilities, including the portfolio of investments, of the CBRE Clarion Global Real Estate Income Fund (the “Trust”), as of December 31, 2014, and the related statements of operations, changes in net assets, cash flows, and financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. The statement of changes in net assets and the financial highlights for each of the years presented through December 31, 2013 were audited by other auditors, whose report thereon dated February 25, 2014, expressed an unqualified opinion on those statements.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December, 2014, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Trust as of December 31, 2014, and the results of its operations, changes in its net assets, cash flows, and the financial highlights for the year then ended in conformity with U.S. generally accepted accounting principles.

Philadelphia, Pennsylvania

February 26, 2015

 

22		CBRE CLARION GLOBAL REAL ESTATE INCOME FUND

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Supplemental Information (unaudited)

Federal Income Tax Information

Qualified dividend income of as much as $10,206,049 was received by the Trust through December 31, 2014. The Trust intends to designate the maximum amount of dividends that qualify for the reduced tax rate pursuant to the Jobs and Growth Tax Relief Reconciliation Act of 2003.

For corporate shareholders, 1.67% of ordinary income distributions for the year ended December 31, 2014 qualified for the corporate dividends-received deduction.

In February 2015, you will be advised on IRS Form 1099 DIV or substitute 1099 DIV as to the federal tax status of the distributions received by you in the calendar year 2014.

Corporate Governance

The Fund submitted its Annual CEO certification for 2014 to the New York Stock Exchange (“NYSE”) on November 21, 2014 stating that the CEO was not aware of any violation by the Fund of the NYSE’s corporate governance listing standards. In addition, the Fund had filed the required CEO/CFO certifications regarding the quality of the Fund’s public disclosure as exhibits to the Forms N-CSR and Forms N-Q filed by the Fund over the past fiscal year. The Fund’s Form N-CSR and Form N-Q filings are available on the Commission’s website at www.sec.gov.

Result of Shareholder Votes

The Annual Meeting of Shareholders of the Fund was held on November 10, 2014.

With regard to the election of the following Trustee of the Fund:

 

				Number of Shares In Favor				Number of Shares Withheld
T. Ritson Ferguson				100,747,096.032					2,142,024.978
Frederick S. Hammer				101,282,452.199					1,606,668.811

The other Trustees of the Fund whose terms did not expire in 2014 are Asuka Nakahara, Richard L. Sutton, John R. Bartholdson.

 

ANNUAL REPORT 2014		23

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Supplemental Information (unaudited) continued

Trustees

The Trustees of the CBRE Clarion Global Real Estate Income Fund and their principal occupations during the past five years:

 

Name, Address and Age		Term of Office and 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: 59		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 IA Capital Group (since 1994) and a member of its investment committee.		1		Serves on the Boards of JetPay Corporation (since 2011); IA Capital Group (2007 - 2011); and Homeowners Insurance Corp. (since 2006); Director of US Fiduciary Corp. (2006 - 2009).
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 Schroder Global Real Estate Securities Limited (F/K/A Investors in Global Real Estate Ltd.) (since 2006).
John Bartholdson 201 King of Prussia Road, Suite 600 Radnor, PA 19087 Age: 70		3 years/ 10 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 Trustee’s initial term, each Trustee is expected to serve a three-year term concurrent with the class of Trustees for which he serves. Mr. Nakahara, as Class II Trustee, is expected to stand for re-election at the Trust’s 2015 annual meeting of shareholders; Messrs. Sutton and Bartholdson, as Class III Trustees, are expected to stand for re-election at the Trust’s 2016 annual meeting of shareholders.; Messrs. Ferguson and Hammer, as Class I Trustees, are expected to stand for re-election at the Trust’s 2017 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.

 

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Supplemental Information (unaudited) continued

Officers

The Officers of the CBRE Clarion Global Real Estate Income Fund and their principal occupations during the past five years:

 

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).

 

ANNUAL REPORT 2014		25

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Supplemental Information (unaudited) continued

Board Considerations in Approving the Advisory Agreement

At a meeting of the Board held on December 2, 2014, the Board approved the continuation of the investment management agreement (the “Advisory Agreement”) between the Advisor and the Trust through December 31, 2015. Overall, the Board concluded that continuation of the Advisory Agreement was in the best interests of the Trust and consistent with the expectations of its shareholders. In determining to approve the continuation of the Advisory Agreement, the Board took into account a number of factors, in each case in the context of the specific facts and circumstances of the Trust and without assigning relative weight to any factor or identifying any factor as determinative.

In approving the continuation of the Advisory Agreement, the Board reviewed the nature, extent and quality of advisory services and administrative services provided by the Advisor, including the performance achieved by the Advisor for the Trust in varying market environments. The Board also considered the consistency of the Advisor’s investment decision-making process, the experience of the Advisor’s personnel and the continuing commitment of the Advisor’s senior management to the operation and management of the Trust. The Board also considered the administrative resources devoted by the Advisor to oversight of the Trust’s operations, without separate charge to the Trust. The Board also considered the Trust’s strategic focus on providing income to its shareholders and current economic trends and conditions. In reviewing the Trust’s performance, the Board considered information relating to the reported performance and expenses of comparable closed-end equity funds (“peer group funds”), and the Advisor’s view as to the reasons for performance differences, including the Trust’s global investment mandate and its use of less leverage compared to most of the peer group funds. The Board concluded that the quality of the services provided to the Trust by the Advisor, including the performance achieved for the Trust, was satisfactory and supported the continued retention of the Advisor by the Trust.

The Board also considered the level of compensation to which the Advisor is entitled under the Advisory Agreement and concluded that fees paid to the Advisor by the Trust are not excessive and that the advisory fee rate is reasonable under the circumstances of the Trust. In reaching this conclusion, the Board considered the Trust’s advisory fee structure and the methodology with which the Advisor’s fee is calculated, information provided by the Advisor with respect to the profits realized by the Advisor as a result of its services to the Trust, including the factors considered by the Advisor in determining such profits, and the Advisor’s profitability in connection with its management of other advisory accounts. The Board also considered the fact that the Trust’s advisory fee had remained comparable to that of peer group funds (some of which funds are charged separately for administrative services provided by their investment managers), while its expense ratio remained lower than that of most peer group funds, notwithstanding the expiration early in the Trust’s prior fiscal year of fee waivers that had been in place since the Trust’s inception in 2004. Although reviewed by the Board, the potential for realization of economies of scale was not a factor in the Board’s conclusions, because the Trust is a closed-end vehicle with limited potential for asset growth.

 

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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 Trust’s voting securities to the Trust’s 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 December 31, is also available, without charge and upon request by calling the Trust at 1-888-711-4272 or by accessing the Trust’s Form N-PX on the Commission’s 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 Trust’s Form N-Qs are available on the SEC website at http://www.sec.gov. The Trust’s Form N-Qs may also be viewed and copied at the Commission’s 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 Trust’s 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 Trust’s 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 participant’s 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 Agent’s 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 Agent’s 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.

 

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CBRE CLARION GLOBAL REAL ESTATE INCOME FUND

 

 

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Item 2. Code of Ethics.

 

(a)

The Trust, as of the end of the period covered by this report, has adopted a Code of Ethics for Senior Financial Officers (the “Financial Officer Code of Ethics”) that applies to the Trust’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Trust or a third party.

 

(b)

Not applicable.

 

(c)

There have been no amendments, during the period covered by this report, to a provision of the Financial Officer Code of Ethics that applies to the Trust’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Trust or a third party, and that relates to any element of the code of ethics description.

 

(d)

The Trust has not granted any waivers, including an implicit waiver, from a provision of the Financial Officer Code of Ethics that applies to the Trust’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, regardless of whether these individuals are employed by the Trust or a third party, that relates to one or more of the items set forth in paragraph (b) of this item’s instructions.

 

(e)

Not applicable.

 

(f)

The Trust’s Financial Officer Code of Ethics is attached hereto as an exhibit.

Item 3. Audit Committee Financial Expert.

All of the members of the audit committee have the business and financial experience necessary to understand the fundamental financial statements of a closed-end, registered investment company; further, each member of the committee is financially literate, as such qualification is interpreted by the Board of Trustees in its business judgment. In addition, the Board has determined that John R. Bartholdson is an “audit committee financial expert” and “independent” as those terms are defined in Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services.

Audit Fees

 

(a)

The aggregate fees billed for each of the last two fiscal years for professional services rendered by the principal accountant for the audit of the Trust’s annual financial statements or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those fiscal years are $45,000 for 2014 and $50,000 for 2013.

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Audit-Related Fees

 

(b)

The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the Trust’s financial statements and are not reported under paragraph (a) of this Item are $0 for 2014 and $0 for 2013.

Tax Fees

 

(c)

The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning are $22,500 for 2014 and $25,000 for 2013. Services include income tax return services including the review and signing of the Trust’s Form 1120-RIC as prepared by the Trust’s administrator.

All Other Fees

 

(d)

The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal accountant, other than the services reported in paragraphs (a) through (c) of this Item are $0 for 2014 and $0 for 2013.

(e)(1) (i) The Trust has an Audit Committee Charter in place (the “Charter”) that governs the pre-approval by the Trust’s Audit Committee of all engagements for audit services and all Covered Non-Audit Engagements (as defined in the Charter) provided by the Trust’s independent auditor (the “Independent Auditor”) to the Trust and other “Related Entities” (as defined below). Each calendar year, the Audit Committee will review and re-approve the Charter, together with any changes deemed necessary or desirable by the Audit Committee. The Audit Committee may, from time to time, modify the nature of the services pre-approved, the aggregate level of fees pre-approved, or both.

“Related Entities” means (i) CBRE Clarion Securities LLC (the “Advisor”) or (ii) any entity controlling, controlled by or under common control with the Advisor.

Pre-approval shall be required only with respect to non-audit services (i) related directly to the operations and financial reporting of the Trust and (ii) provided to a Related Entity that furnishes ongoing services to the Trust. Such pre-approval shall not apply to non-audit services provided to any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser. Pre-approval by the Audit Committee of such non-audit services shall be effected pursuant to the pre-approval procedures described in the Charter. The Charter shall not be violated if pre-approval of any such non-audit service is not obtained in circumstances in which the pre-approval requirement is waived under applicable rules promulgated by the Securities and Exchange Commission (“SEC”) or the NYSE, in accordance with the Sarbanes Oxley Act.

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Requests for pre-approval of Covered Non-Audit Engagements are submitted to the Audit Committee by the Independent Auditor and by the chief financial officer of the Related Entity for which the non-audit services are to be performed. Such requests must include a statement as to whether, in the view of the Independent Auditor and such officer, (a) the request is consistent with the SEC’s rules on auditor independence and (b) the requested service is or is not a non-audit service prohibited by the SEC. A request submitted between scheduled meetings of the Audit Committee should state the reason that approval is being sought prior to the next regularly scheduled meeting of the Audit Committee.

Between regularly scheduled meetings of the Audit Committee, the Committee Chairman or Audit Committee Financial Expert shall have the authority to pre-approve Covered Non-Audit Engagements, provided that fees associated with such engagement do not exceed $10,000 and the services to be provided do not involve provision of any of the following services by the Independent Auditor: (i) bookkeeping or other services related to the accounting records or financial statements of the audit client; (ii) financial information systems design and implementation; (iii) appraisal or valuation services, fairness opinions, or contribution-in-kind reports; (iv) actuarial services; (v) internal audit outsourcing services; (vi) management functions; (vii) human resources; (vii) broker dealer, investment advisor or investment banking services; (ix) legal services; or (x) expert services unrelated to the audit.

Fee levels for all Covered Services to be provided by the Independent Auditor and pre-approved under this Policy will be established annually by the Audit Committee. Any increase in pre-approved fee levels will require specific pre-approval by the Audit Committee.

The terms and fees of the annual Audit services engagement for the Trust are subject to the specific pre-approval of the Audit Committee. The Audit Committee will approve, if necessary, any changes in terms, conditions or fees resulting from changes in audit scope, Trust structure or other matters.

 

(e)(2)

100% of the services described in each of paragraphs (b) through (d) of this Item that were approved by the Trust’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

(f)

The percentage of hours expended on the principal accountant’s engagement to audit the Trust’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was less than fifty percent.

 

(g)

The aggregate non-audit fees billed by the Trust’s accountant for services rendered to the Trust, and rendered to the Trust’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Trust for each of the last two fiscal years of the Trust was $22,500 for 2014 and $34,500 for 2013.

 

(h)

Not applicable.

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Item 5. Audit Committee of Listed Registrants.

 

(a)

The Trust has a separately designated audit committee consisting of all the independent directors of the Trust. The members of the audit committee are: Frederick S. Hammer, Asuka Nakahara, Richard L. Sutton and John R. Bartholdson.

 

(b)

Not applicable.

Item 6. Investments.

 

(a)

Schedule of Investments in securities of unaffiliated issuers as of the close of the reporting period is included as part of the report to shareholders filed under Item 1 of this form.

 

(b)

Not applicable.

 

Item 7.

Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

The Trust has delegated the voting of proxies relating to its voting securities to the Advisor, pursuant to the proxy voting procedures of the Advisor. The Trust’s and the Advisor’s Proxy Voting Policies and Procedures are included as an exhibit hereto.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

  (a)

As of March 5, 2015:

T. Ritson Ferguson

Chief Executive Officer and Co-Chief Investment Officer, CBRE Clarion Securities LLC since 1992

Steven D. Burton

Managing Director and Co-Chief Investment Officer, CBRE Clarion Securities LLC since 1995

Joseph P. Smith

Managing Director and Co-Chief Investment Officer, CBRE Clarion Securities LLC since 1997

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Other Accounts Managed (as of December 31, 2014). The Portfolio Managers are also collectively responsible for the day-to-day management of the Advisor’s other accounts, as indicated by the following table.

 

Name of Portfolio Managers		Type of Accounts		Number of Accounts Managed		Total Assets in the Accounts				Managed with Advisory Fee Based on Performance		Managed with Advisory Fee Based on Performance
T. Ritson Ferguson		Registered Investment Companies		16		$	13,990,539,673			0		$	0
		Other Pooled Investment Vehicles		32		$	4,954,050,509			0		$	0
		Other Accounts		70		$	5,831,656,119			8		$	2,331,334,258
Steven D. Burton		Registered Investment Companies		12		$	11,627,196,559			0		$	0
		Other Pooled Investment Vehicles		26		$	4,350,343,858			0		$	0
		Other Accounts		53		$	5,034,970,158			8		$	2,331,334,258
Joseph P. Smith		Registered Investment Companies		15		$	13,947,260,501			0		$	0
		Other Pooled Investment Vehicles		27		$	4,328,544,164			0		$	0
		Other Accounts		69		$	5,400,745,860			8		$	2,331,334,258

Potential Conflicts of Interests

A portfolio manager may be subject to potential conflicts of interest because the portfolio manager is responsible for other accounts in addition to the Trust. These other accounts may include, among others, other closed-end funds, mutual funds, separately managed advisory accounts, commingled trust accounts, insurance separate accounts, wrap fee programs, and hedge funds. Potential conflicts may arise out of the implementation of differing investment strategies for a portfolio manager’s various accounts, the allocation of investment opportunities among those accounts or differences in the advisory fees paid by the portfolio manager’s accounts.

A potential conflict of interest may arise as a result of a portfolio manager’s responsibility for multiple accounts with similar investment guidelines. Under these circumstances, a potential investment may be suitable for more than one of the portfolio manager’s accounts, but the quantity of the investment available for purchase is less than the aggregate amount the accounts would ideally devote to the opportunity. Similar conflicts may arise when multiple accounts seek to dispose of the same investment.

A portfolio manager may also manage accounts whose objectives and policies differ from those of the Trust. These differences may be such that under certain circumstances, trading activity appropriate for one account managed by the portfolio manager may have adverse consequences for another account managed by the portfolio manager. For example, if an account were to sell a significant position in a security, which could cause the market price of that security to decrease while the Trust maintained its position in that security.

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A potential conflict may arise when a portfolio manager is responsible for accounts that have different advisory fees – the difference in the fees may create an incentive for the portfolio manager to favor one account over another, for example, in terms of access to particularly appealing investment opportunities. This conflict may be heightened where an account is subject to a performance-based fee.

CBRE Clarion recognizes the duty of loyalty it owes to its clients and has established and implemented certain policies and procedures designed to control and mitigate conflicts of interest arising from the execution of a variety of portfolio management and trading strategies across the firm’s diverse client base. Such policies and procedures include, but are not limited to: (i) investment process, portfolio management, and trade allocation procedures; (ii) procedures regarding short sales in securities recommended for other clients; and (iii) procedures regarding personal trading by the firm’s employees (contained in the Code of Ethics).

(a)(3)     Compensation Structure of Portfolio Manager(s) or Management Team Members

There are five pieces of compensation for CBRE Clarion portfolio managers:

Base Salary— Portfolio manager salaries are reviewed annually and fixed for each year at competitive market levels.

Profit Participation— Senior management, including the portfolio managers primarily responsible for the Trust, owns a minority interest in CBRE Clarion. Ownership entitles senior management to an increasing share of the firm’s profit over time, although an owner’s equity interest may be forfeited if the individual resigns voluntarily in the first several years.

Bonus— Portfolio manager bonuses are drawn from an incentive compensation pool into which a significant percentage of CBRE Clarion’s pre-tax profits is set aside. Bonuses are based upon the measurement of performance in the portfolio manager’s respective area of coverage. Performance is quantified through a proprietary “scorecard” graded by the CEO and the other CIOs. In order to avoid the pitfalls of relying solely upon a rigid performance format, however, the overall bonus takes into account other important factors such as the portfolio manager’s contribution to the team, firm, and overall process.

Deferred Compensation— A portion of the incentive compensation pool is set aside each year as deferred compensation for a large number of senior employees in the firm, including the portfolio managers. These awards have vesting and payout features, which encourage long-term stability of our senior staff.

Other Compensation— Portfolio managers may also participate in benefit plans and programs available generally to all employees, such as CBRE Clarion’s 401(k) plan.

Portfolio manager compensation is not based on the performance of any particular account, including the Trust, nor is compensation based on the level of Trust assets.

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(a)(4)     Disclosure of Securities Ownership

The following table indicates the dollar range of securities of the Trust beneficially owned by the Portfolio Managers as of December 31, 2014.

 

Name of Portfolio Managers		Dollar Value of Trust Shares Beneficially Owned
T. Ritson Ferguson		$100,001 -$500,000
Steven D. Burton		$100,001-$500,000
Joseph P. Smith		$10,001-$50,000

 

(b)

Not applicable

 

Item 9.

Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10.   Submission of Matters to a Vote of Security Holders.

Not applicable.

Item 11.   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-CSR 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 second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

Item 12. Exhibits.

 

(a)(1)

Financial Officer Code of Ethics.

 

(a)(2)

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

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(a)(3)

Not applicable.

 

(b)

Certifications pursuant to Rule 30a-2(b) under the 1940 Act and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto.

 

(c)

Proxy Voting Policies and Procedures.

 

(d)

Notices to Trust’s common shareholders in accordance with Investment Company Act Section 19(a) and Rule 19a-1.(1)

The Trust has received exceptive 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 Trust’s 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.

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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 (Signature and Title)*		/s/ T. Ritson Ferguson
		T. Ritson Ferguson       President and Chief Executive Officer
Date March 5, 2015

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 March 5, 2015

 

By (Signature and Title)*		/s/ Jonathan A. Blome
		Jonathan A. Blome       Chief Financial Officer

Date March 5, 2015

^* Print the name and title of each signing officer under his or her signature.