CBRE Clarion Securities LLC Clarion... · Form ADV Part 2A Disclosure Brochure CBRE Clarion...

Form ADV Part 2A Disclosure Brochure

CBRE Clarion Securities LLC 201 King of Prussia Road, Suite 600 Radnor, Pennsylvania, USA 19087 Main Phone: +1 610 995 2500 Website: www.CBREClarion.com

Information current as of

30 March 2016

ThisbrochureprovidestheinformationaboutthequalificationsandbusinesspracticesofCBREClarionSecurities.Ifyouhaveanyquestionsaboutthecontentsofthisbrochure,pleasecontactusat+16109952500.TheinformationinthisbrochurehasnotbeenapprovedorverifiedbytheUnitedStatesSecuritiesandExchangeCommissionorbyanystatesecuritiesauthority.

CBREClarionSecuritiesisaregisteredinvestmentadviserwiththeUnitedStatesSecuritiesandExchangeCommission.Ourregistrationnumberis801‐49083.Registrationasaninvestmentadviserdoesnotimplyanylevelofskillortraining.

AdditionalinformationaboutCBREClarionSecuritiesalsoisavailableontheSEC’swebsiteatwww.adviserinfo.sec.gov.

CBRE Clarion Securities | 801-49083

ii | Form ADV Part 2A | 30 March 2016

Material Changes Thiscurrentbrochureisdated30March2016andreplacesthepriorformdated31August2015.

Theupdateinthiscurrentbrochurereflectsanannualamendmentfortheyear‐end2015,andeditorialchangestothedescriptionsofcertainpoliciesandprocedures,including:

anewRestrictedBrokeragesectionwhichincludesadescriptionofclientinstructedrestrictionsontheuseofsoftdollars;

anewprivatefundformedandmanagedbythefirm; informationaboutthefirm’scybersecurityandinformationsecurity

policies,includingencryptedclientcommunications; informationaboutarelationshipwithaconsultant‐solicitor,and informationaboutrequestsforproxyvotingguidelinesandresults.

Additionally,thisupdateincludesinformationregardingthreeexecutivepromotionsandresultingchanges:

T.RitsonFergusonwasnamedChiefExecutiveOfficerofCBREGlobalInvestors,

JosephSmithwasnamedPresidentofCBREClarionSecuritiesandco‐leaderoftheInvestmentTeamwithMr.Ferguson,and

JeremyAnagnoswasnamedChiefInvestmentOfficer–InfrastructureofCBREClarionSecurities.

Pursuanttoregulatoryrequirements,wewillensurethatyoureceiveasummaryofanymaterialchangestothisandsubsequentbrochuresbyApril30thofeachyear.Wewillprovideaninterimdeliveryofthisdocumentifanychangesaresufficientlymaterial.Copiesofthemostrecentversionofthisformarealwaysavailableatanytime,withoutcharge.

Currently,thisbrochurecanberequestedbycontactingourClientServiceteamat+16109952500.Thisbrochureisalsoavailableonourwebsiteatwww.cbreclarion.com.

AdditionalinformationaboutCBREClarionSecuritiesisalsoavailableviatheSEC’swebsitewww.adviserinfo.sec.gov.

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30 March 2016 | Form ADV Part 2A | iii

Table of Contents

Material Changes ................................................................................................................ ii

Advisory Business ................................................................................................................ 5

History & Ownership ........................................................................................................... 6

Organization and Management ........................................................................................... 7

Fees and Compensation .................................................................................................... 10

Performance-Based Fees and Side-by-Side Management ................................................... 12

Types of Clients ................................................................................................................. 13

Methods of Analysis, Investment Strategies, & Risk of Loss ................................................. 15

Real Estate and Infrastructure Securities .............................................................................. 15

Investment Process ............................................................................................................ 16

Risks ................................................................................................................................. 19

Disciplinary Information .................................................................................................... 23

Other Financial Industry Activities & Affiliations .................................................................. 24

CBRE Group ..................................................................................................................... 24

CBRE Clarion Subsidiary Advisers ....................................................................................... 25

CBRE Clarion Affiliated Funds ............................................................................................ 26

Advisory Representatives Registered with an Unaffiliated Broker Dealer ................................ 27

Outside Positions and Relationships of CBRE Clarion Personnel ........................................... 28

Code of Ethics, Participation or Interest in Client Transactions, and Personal Trading ......... 30

CBRE Clarion Code of Ethics .............................................................................................. 30

CBRE Clarion Business Principles ..................................................................................................... 31

Personal Investments of CBRE Clarion Personnel .......................................................................... 32

Preventing the Misuse of Material Non-Public Information .......................................................... 33

Policies on Gifts and Entertainment, Political Contributions, and Anti-Corruption .................... 34

Conflicts Involving Client Transactions ................................................................................ 35

Brokerage Practices ........................................................................................................... 37

Trade Aggregation (“Bunching”) and Allocation .................................................................. 37

Investments in IPOs ........................................................................................................... 38

Long and Short Positions ................................................................................................... 38


iv | Form ADV Part 2A | 30 March 2016

Transactions Between Client Accounts ................................................................................ 39

Best Execution ................................................................................................................... 40

Client-Directed Brokerage – Including Commission Recapture ............................................. 41

Soft Dollar Arrangements .................................................................................................. 43

Restricted Brokers .............................................................................................................. 45

Trade Errors ...................................................................................................................... 46

Review of Accounts ............................................................................................................ 47

Client Referrals and Other Compensation ......................................................................... 49

Custody ............................................................................................................................ 50

Investment Discretion ........................................................................................................ 52

Voting Client Securities ..................................................................................................... 53

Financial Information ........................................................................................................ 54

Brochure Supplements....................................................................................................... 55

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30 March 2016 | Form ADV Part 2A | 5

Advisory Business CBREClarionSecurities(“CBREClarion”or“we”)specializesinmanagingportfoliosofrealassetsecurities,includinglistedrealestate,listedinfrastructure,andmasterlimitedpartnershipsforinstitutionalclients.

RealestatesecuritiesincludesecuritiesissuedbyRealEstateInvestmentTrusts(“REITs”),RealEstateOperatingCompanies(“REOCs”),andothercompanieswithsignificantrealestateactivities.Wedefinerealestateactivitiestoincludeowning,operating,leasing,developing,managing,brokeringand/orsellingcommercialorresidentialrealestate,land,orcertainformsofinfrastructure.Wedefineaninfrastructurecompanytohavesignificantactivitiesinowning,developing,managing,oroperatinginfrastructureassets.Infrastructureassetsincludetransportationassets,utilityassets,energyassets,andcommunicationassets.Masterlimitedpartnerships(“MLPs”)areaformofpubliclytradedpartnershipswhichgenerateincomefromtheextraction,transportation,processing,andstorageoffossilfuelsandcertainfossilfuelbyproducts.

Wefocusonequitysecurities,primarilycommonorpreferredstocklistedonarecognizedstockexchange.Forparticularmandates,wemayinvestinfixedincomesecurities,MLPs(orotherpubliclytradedpartnerships),orequity‐relatedsecurities.

Wemanageclientportfoliosonafullydiscretionarybasisforavarietyofinvestmentobjectivesacrossseveraltypesofinvestmentmandates.

Wemanageclientaccountsinaparticularassettype(i.e.,realestate,infrastructure,orrealassetblend)andaccordingtoaprimaryinvestmentobjective,suchas:

TotalReturn Income‐Oriented AbsoluteReturn(e.g.,RealReturnorLong/Short)

Further,ourinvestmentmandatesaregenerallydefinedbygeography,suchas:

Global Regional(e.g.,International(ex‐U.S.),Asia‐Pacific,andEurope) CountrySpecific(e.g.,U.S.,Australia)


6 | Form ADV Part 2A | 30 March 2016

Thecombinationofinvestmentobjectivesandinvestmentmandatesresultsinoneormoreinvestmentmodelsusedtomanageclientaccounts.Clientaccountswithsimilarinvestmentobjectivesandsimilarinvestmentmandatesaremanagedinaccordancewithasimilarmodel.Aclientcanimposeuniqueinvestmentrestrictionsandguidelineswhichwillbehonoredinmanagingtheaccount.Moreinformationaboutourinvestmentprocess,discretion,andhowweserviceclientsiscontainedthroughoutthisbrochure.

Asof31December2015,CBREClarionmanagedUS$20.8billionindiscretionaryclientassetsforapproximately100clientaccounts.

History & Ownership

Throughoutourhistory,CBREClarionhasmaintainedthesameinvestmentphilosophyandkeyleadersoftheinvestmentteam.

In1969,KennethD.CampbellformedAuditInvestments,aregisteredinvestmentadviser,andeventualpredecessortoCBREClarion.In1984,AuditInvestmentsbeganmanagingU.S.realestatesecuritiesportfoliosforinstitutionalclients.In1992,T.RitsonFergusonandJarrettB.KlingjoinedMr.Campbelland,withprincipalsofRadnorAdvisors(arealestateinvestmentfirm),formedCampbell‐RadnorAdvisorstocontinuetheinvestmentadviserbusinessofAuditInvestments.In1995,Campbell‐RadnorAdvisorssoldaninteresttocertainprincipalsofClarionPartners,arealestateinvestmentfirminNewYork,andbecameClarionCRASecurities.In1998,INGGroupacquiredClarionCRASecuritiesandClarionPartners.WithinINGGroup,wewerepartofINGRealEstateInvestmentManagement(“INGREIM”)andoperatedunderthenameINGClarionRealEstateSecuritiesasanindependentbusinessunitdedicatedtorealestatesecurities.In2001,webeganmanagingglobalrealestatesecuritiesportfolios.

InJuly2011,wejoinedCBREGroup,Inc.(“CBRE”)(NYSE:CBG),whichwastheresultofINGGroup’sstrategicdecisiontoselltheINGREIMplatform.CBREisafull‐servicecommercialrealestateservicescompany,withapproximately70,000employees(includingaffiliates)acrossapproximately400officesworldwide.

Atthecloseofthetransaction,wechangedournametoCBREClarionSecurities.Throughthetransaction,CBREacquiredamajorityownership



interestofCBREClarionandourPrincipalgroupofexecutivesacquiredaminority,butmaterial,ownershipinterestinthefirm.

Today,CBREClarionisthelistedsecuritiesinvestmentmanagementarmofCBREGlobalInvestors,aglobalrealestateinvestmentmanagementbusinesslinewithinCBREthatsponsorsrealestateinvestmentprogramsacrosstherisk/rewardspectrum.CBREGlobalInvestors,LLC(anaffiliatedadviser)istheprimaryU.S.businessfortheCBREGlobalInvestorsplatformanditprovidesdirectrealestateandrealestaterelatedinvestmentandassetmanagementservicestoitsclients.

Organization and Management

CBREClarionisheadquarteredinRadnor(nearPhiladelphia),Pennsylvania,USAandhasofficesinLondon,England;Tokyo,Japan;HongKong;andSydney,Australia.Asofthedateofthebrochure,CBREClarionhasapproximately95employeesglobally.

CBREClarionisorganizedintothreeprimaryfunctionalteams:

InvestmentTeamconsistingofPortfolioManagers,InvestmentAnalysts,PortfolioAnalysts,andTraders

MarketingandClientServiceTeamconsistingofClientService,Sales,andMarketingpersonnel

OperationsTeamconsistingofSecuritiesOperations,Legal,Compliance,RiskManagement,InformationTechnology,andAdministrativeSupport

ThestrategicvisionofCBREClarionisvestedinitsBoard,whichconsistsofthreeexecutiveswithintheCBREorganization:theCEOofCBREClarion,anexecutiverepresentativeofCBREGlobalInvestors,andtheGlobalChiefFinancialOfficerofCBRE.

CBREClarionisgovernedbyaManagementCommittee,whichisresponsiblefortheday‐to‐daymanagementofthefirm.TheManagementCommitteeconsistsofthefollowingexecutives,allofwhomarePrincipalsofthefirm:



Management Committee Member Role

T. Ritson Ferguson Chief Executive Officer, Global Chief Investment Officer

Joseph P. Smith President, Co-Chief Investment Officer – Global Real Estate

Steven D. Burton Co-Chief Investment Officer – Global Real Estate

Jeremy M. Anagnos Chief Investment Officer – Global Infrastructure

Jarrett B. Kling Sales and Marketing

Steven P. Sorenson Global Marketing and Client Service

David J. Makowicz Chief Operating Officer

Jonathan A. Blome Chief Financial Officer

InadditiontotheManagementCommittee,CBREClarion’sotherkeyexecutiveofficersincludethefollowingPrincipals:

Other Key Executives Role

William E. Zitelli General Counsel

Robert S. Tull Chief Compliance Officer and Chief Risk Officer

Mr.FergusonalsoservesastheChiefExecutiveOfficerandGlobalChiefInvestmentOfficerforCBREGlobalInvestors.Intheseroles,heisresponsibleforoverseeingtheinvestmentprogramsofCBREGlobalInvestors,aswellasCBREClarion.

Mr.FergusonandMr.SmithleadtheInvestmentTeam.TheCBREClarionPortfolioManagersareorganizedbyassettypeandregionalresearchandoversightresponsibilities.

TheSeniorGlobalPortfolioManagersare:



Portfolio Manager Role Mandates

T. Ritson Ferguson Global Chief Investment Officer Global Real Estate and Infrastructure

Joseph P. Smith Co-Chief Investment Officer Global and Americas Real Estate

Steven D. Burton Co-Chief Investment Officer Global and Europe Real Estate

Jeremy M. Anagnos Chief Investment Officer Global Infrastructure

W. Stevens Carroll Senior Global Portfolio Manager Global and Asia-Pacific Real Estate

Christopher S. Reich Senior Global Portfolio Manager Global and Asia-Pacific Real Estate

Kenneth S. Weinberg Senior Global Portfolio Manager Global and Americas Real Estate

Investment Management Agreements

CBREClarionmanageseachclientaccountpursuanttoawritteninvestmentmanagementagreement.ClientsmaybeaskedtoexecuteastandardformofagreementusedbyCBREClarion,orclientsmaynegotiatetheirownformofagreementwithCBREClarion.Althoughthetermsofeachclientagreementmightvary,investmentmanagementagreementscangenerallybeterminatedbyeitherpartyupon30dayspriorwrittennotice.Ifapplicable,anypre‐paidfeeswillberefunded.AninvestmentmanagementagreementwillnotbeassignedbyCBREClarionwithouttheclient’sconsent.

Other Forms of Advisory Services

Non‐discretionaryinvestmentadvisoryservicesareprovidedonalimitedbasis.Inparticular,CBREClarionprovidesnon‐discretionaryservicesto:certainunaffiliatedinstitutionalclientsandfundsponsors,foruseinmanagingrealestatesecuritiesfunds;MerrillLynch,foruseinitsunifiedmanagedaccountprogram;andVoyaInvestmentManagementCo.,forusetomanageaccountsonaseparatelymanagedaccountplatform.CBREClarionearnsafeebasedonpercentageofassetsintheprograminvestedinfundsoraccountsmanagedbasedonCBREClarion’sadvice.PersonsinvestingthroughthesefundsortheUMAandSMAplatformsarenotclientsofCBREClarion.Non‐discretionaryinvestmentadvisoryservicesarenotaprimaryserviceoffering.

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Fees and Compensation

Weprovideadvisoryservicesforafeebasedonapercentageofassetsundermanagement.Inadditiontopayingourinvestmentmanagementfee,clientsshouldexpecttopayfeesforcustodyandadministrationservices,brokeragecommissions(notincidentaltoourservices),andothersimilarcosts.TheseadditionalcostsarenotpaidtoCBREClarion.

Institutional Separate Account Fees

Weprovideadvisoryservicestoinstitutionalseparateaccounts.PleaserefertotheTypesofClientssectionofthisbrochureforthetypesofentitiesweregardasinstitutionalclients.

Investmentmanagementfeesforinstitutionalseparateaccountswithatotalreturnobjectivewillgenerallybeginatthefollowingrates(statedasapercentageofassetsundermanagement):

Total Return Investment Objective Beginning Fee Rate

Global Real Estate 65 basis points (0.65%)

U.S. Real Estate 50 basis points (0.50%)

International (ex-U.S.) Real Estate 70 basis points (0.70%)

Asia-Pacific Real Estate 75 basis points (0.75%)

European Real Estate 75 basis points (0.75%)

Global Infrastructure 70 basis points (0.70%)

MLP 90 basis points (0.90%)

Investmentmanagementfeesmaybetieredorotherwisenegotiable,dependingonthesizeandmandateoftheaccount.CBREClarionhasagreedto“most‐favored‐nation”clausesinagreementswithcertainclients.InvestmentmanagementfeesforinstitutionalseparateaccountswithIncome‐OrientedandAbsoluteReturninvestmentobjectivesarecustomizedandnegotiable.



Feecalculationandpaymenttermsarenegotiable.Managementfeesaremostoftenpaidquarterlyinarrearsandarecalculatedbymultiplyingtheaveragemonthlyassetsundermanagementfortheperiodbytheapplicablerate,equivalentto¼(one‐quarter)theannualizedrate.

Forthepurposeofcomputingmanagementfees,CBREClarionvaluesclientaccountsusingBloombergasitsprimarypricingsourceandIDCasasecondary,back‐uppricingsource.Attherequestofaclient,managementfeesmaybecalculatedbasedonvaluationsdeterminedbythecustodianoradministratorfortheaccount.

Whenadvisoryservicesareprovidedforlessthanonequarter,thefeewillbepro‐ratedforthenumberofdaystheaccountwasopenduringthequarter.Inmostcases,themanagementfeeisalsopro‐ratedforclient‐directedcashflowsintheaccount(e.g.,contributionsorwithdrawals).

Investmentmanagementfeesarepaidbytheclient.CBREClariondoesnotdirectlydebitinvestmentmanagementfeesfromaclient’saccount.

Inverylimitedsituations,CBREClarionpersonnelaredesignatedbyaclientas“authorizedsigners”withtheabilitytodisbursefundsforaclient.

Fees for Other Types of Accounts

Therateandtimingofmanagementfeesforothertypesofaccountsmayvary.Forexample,CBREClarionservesasinvestmentadvisertocertainclosed‐endandprivateinvestmentcompanies.Feeschargedonthesefundsaredescribedinthefunds’disclosuredocuments(i.e.,ProspectusorOfferingMemorandum).

Similarly,CBREClarionservesassub‐advisertoavarietyofinvestmentfunds,includingmutualfunds.Forthesefunds,CBREClarioniscompensatedbythenamedinvestmentadviserortrustee.Insuchcases,CBREClarion’sfeeisnegotiatedwiththefund’snamedinvestmentadviserorsponsor.

FeespaidtoCBREClarionfornon‐discretionaryadvisoryserviceshavebeennegotiatedwiththeclientorprogramsponsor.

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Performance-Based Fees and Side-by-Side Management

Forsomeclients,CBREClarionchargesamanagementfeewhichconsistsofabasefeeplusan“incentive”or“performance”fee.Often,this“performance‐based”feeisequaltoapercentageofinvestmentreturnsoveranagreeduponbenchmarkoraspecifiedrateofreturn.

Itispossiblethattwoclientaccountsinthesamemodel(sameinvestmentobjective,sameinvestmentmandate,andsamebenchmark)mayhavedifferentfeestructuresbecauseonemayhaveaperformance‐basedfee.Inthissituation,thetwoclientscouldpaydifferentamountsforthesameservicesolelybecauseoftheperformance‐basedfee.

Performance‐basedfeearrangementscanprovideforincreasedcompensationforanadviser,whichcancreateaninherentconflictofinterest,inthataperformance‐basedfeeprovidesanincentiveforanadvisertomakeinvestmentswhichcouldberiskierormorespeculativeinanefforttoimproveperformanceandearnahigherfee.

Additionally,performance‐basedfeearrangementscancreateanincentivetofavorperformance‐basedfeeaccountsoverotheraccountsintheallocationofinvestmentopportunities.CBREClarionhasdesignedandimplementedprocedurestoensurethatallclientsaretreatedfairlyandequallywhenallocatinginvestmentopportunities,regardlessoftheclient’sfeestructure.CBREClarion’sproceduresforallocatinginvestmentopportunitiesaredescribedintheBrokeragePracticessectionofthisbrochure.

Performance‐basedfeearrangementsareonlyavailabletoqualifiedclients,inaccordancewithRule205‐3oftheInvestmentAdvisersActof1940.

SinceCBREClarionfollowsateamapproachinmakinginvestmentdecisions,thesamePortfolioManagersprovideservicestobothperformance‐basedfeeaccountsandstandardfeeaccounts.

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Types of Clients

CBREClarionprovidesdiscretionaryadvisoryservicesgloballytoinstitutionalclients,suchas:

Corporateandpublicpensionplans Sovereignwealthfunds Governmententities UniversitiesandEndowments Charitableorganizations Corporations Taft‐Hartleyplans Foundations FamilyOffices,Estates,andHighNetWorthIndividuals Open‐endinvestmentcompanies Closed‐endinvestmentcompanies Insurancecompanies Collectivetrusts Privateinvestmentfunds

Asof31December2015,CBREClarionmanagedUS$20.8billionindiscretionaryclientassetsforapproximately100clientaccounts.

CBREClariongenerallyrequiresaninitialminimumfundingamountofUS$10millionforinstitutionalseparateaccounts.

Affiliated Private Funds

TheeligibilityconditionsandminimuminvestmentamountsrelatedtotheAffiliatedPrivateFunds(asdefinedonpage27)aredescribedinthefund’sprivateplacementmaterials.MinimuminvestmentsareUS$3millionbutmaybereducedinCBREClarion’sdiscretion.



Non-Discretionary Platforms

CBREClarionprovidesnon‐discretionaryadvisoryservicesthroughcertainunaffiliatedinstitutionalclientsandfundsponsors,theMerrillLynchUMAprogram,andtheVoyaInvestmentManagementCo.SMAplatformsponsoredbyathird‐partyfirm.TheinitialminimuminvestmentamountaccountsinfundsortheUMAorSMAprogramsvarydependingontheplatformandthesponsor.

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Methods of Analysis, Investment Strategies, & Risk of Loss

CBREClarionactivelymanagesportfoliosofrealassetsecurities,includinglistedrealestateandlistedinfrastructure,toeitheroutperformapassiveindexstrategyorachieveatargetrateofreturnthroughexpertiseandresearchofbothlistedanddirectrealestateandinfrastructuremarkets.

Real Estate and Infrastructure Securities

CBREClarionfocusesoninvestinginequity‐relatedsecuritiesofpubliclytradedrealestateandinfrastructurecompanies,whichinclude:

Commonstock Preferredstock MasterLimitedPartnershipunits Depositoryreceipts Convertibledebt Warrants Rights

AlthoughCBREClarionfocusesoninvestinginpubliclytradedcompanies,notallsecuritiesissuedbythosecompaniesarelistedoractivelyquoted.Onoccasion,CBREClarionmayinvestinprivatecompaniesorinaprivateplacementofsecuritiesbyapubliccompany.Restrictedorunlistedsecuritiesmaybeilliquid.Ingeneralhowever,CBREClarionmaintainsahighdegreeofliquidityinclientaccounts.

Inaddition,CBREClarionmayuseothertypesofinstrumentstoimplementitsinvestmentstrategies.Theseotherinstrumentsinclude:

Options Exchange‐tradedfunds Closed‐endfunds Participationnotes Currencyforwards



CBREClarionmayuseoptions,participationnotes,orother“syntheticequity”structuresasawaytoinvestinsecuritiesthattradeinmarketswhichareotherwiseinaccessible.

Dependingontheclientmandate,CBREClarionmayuseoptions,swaps,orforwardsforthepurposesofhedgingmarketrisk,interestraterisk,orcurrencyrisk.Optionsmayalsobeemployedtoenhancereturns.

Aspartofinvestinginglobalsecurities,CBREClarionwillexecutespotforeignexchange(“FX”)transactionsonanegotiatedbasisthroughathird‐partyFXcounterpartyor,uponrequest,throughtheclient’scustodian.

CBREClarionhasbroaddiscretioninthetypesofsecuritiesandinvestmentstrategiesemployedinmanagingtheAffiliatedPrivateFunds.Thisisdiscussedinthosefunds’offeringdocuments.

Investment Process

Westressacollegialteamapproachtoinvestmentdecisionmaking.TheinvestmentprocessisoverseenbyT.RitsonFergusonasGlobalChiefInvestmentOfficerandJosephSmithasPresident.InvestmentdecisionsandportfoliostructuringwithinCBREClarionaredrivenbyateamofPortfolioManagers,ledbytheCo‐ChiefInvestmentOfficers.ThePortfolioManagementTeamiscomprisedofSeniorGlobalPortfolioManagersandPortfolioManagers.ThePortfolioManagementTeamisorganizedwitharegionalfocus(e.g.,Americas,Europe,andAsia‐Pacific).

TheSeniorGlobalPortfolioManagersare:

Portfolio Manager Role Mandates

T. Ritson Ferguson Global Chief Investment Officer Global Real Estate and Infrastructure

Joseph P. Smith Co-Chief Investment Officer Global and Americas Real Estate

Steven D. Burton Co-Chief Investment Officer Global and Europe Real Estate

Jeremy M. Anagnos Chief Investment Officer Global Infrastructure

W. Stevens Carroll Senior Global Portfolio Manager Global and Asia-Pacific Real Estate

Christopher S. Reich Senior Global Portfolio Manager Global and Asia-Pacific Real Estate

Kenneth S. Weinberg Senior Global Portfolio Manager Global and Americas Real Estate



TheSeniorGlobalPortfolioManagersarecentrallylocatedinCBREClarion’sU.S.office,whereastheotherPortfolioManagersareregionallylocatedbasedoneachone’srespectiveregionalfocus.TheregionalorganizationoftheInvestmentTeamensuresfastandefficientinvestmentdecisionmaking.

ThePortfolioManagementteamissupportedbythelargerInvestmentTeam,whichincludesInvestmentAnalysts,PortfolioAnalysts,andTraders.

Weuseamulti‐stepinvestmentprocessforconstructingclientportfolios.Ourprocesscombinestop‐down,researchdrivenportfoliodesignwithbottom‐upsecuritiesselectionbasedonintensivefundamentalcompanyanalysis.

Top-Down Asset Allocation

PortfoliothemesandallocationtargetsatacountryandsectorperspectiveareestablishedbyCBREClarioninvestmentpolicyandinfrastructureallocationcommittees(“GlobalCommittees”),whichareledbytheChiefInvestmentOfficers.TheGlobalCommitteesconsiderproprietaryinformationandmarketexpertise,someofwhichissourcedfromotherbusinesseswithinCBRE,toreviewtherelativegrowthandriskoutlookformarketsandsectors.TheGlobalCommitteesanalyzeregionaltrendsinmacro‐economicandcapitalmarketanalysis,aswellasvaluationsintherealestateandinfrastructuremarkets.

TheGlobalCommitteesproduceallocationrecommendationsforcountriesandsectors.TheGlobalCommitteesdonotdiscussorreviewindividualcompaniesormakepurchaseandsaledecisionsregardingspecificstocks.

Bottom-Up Security Selection

Weuseaproprietarysystemtoconductfundamentalcompanyanalysis,whichprovidesaframeworkforsecurityselection.OurapproachincorporatesseveralquantitativeandqualitativefactorsthatassisttheInvestmentTeaminevaluatingperformancecharacteristicsofindividualsecuritiesindependentlyandrelativetoeachother.Theresultsofouranalysisareusedtohelpselectappropriatestocksforconsiderationinportfolioconstruction,consistentwithtop‐downassetallocationrecommendations.



Bottom‐upsecurityselectionistheresponsibilityofthePortfolioManagementteamassignedtoeachregion.EachregionalteamincludesateamofPortfolioManagersempoweredtomakeinvestmentdecisionswithintheirrespectiveregions.PortfoliopositionweightsareestablishedfollowingconsiderationoftheInvestmentTeam’slevelofconviction,thefundamentalanalysis,totalreturnpotential,liquidity,size,andpotentialtrackingerror.Aggregatepositionsbyregionandsectorarereviewedagainstestablishedsectorandregionalassetallocationbandsandportfolioriskparameters.

Research

Asamatterofprocess,werelyprimarilyonourowninternalresearcheffortsforsecurityspecificinformation.TheInvestmentTeamdrawsontheresearchandresourcesofCBREglobalorganization,enhancingitsresearchcapabilitieswithdirectrealestateandinfrastructureresearchprofessionalstocoordinatein‐depthlocalanalysisforacomprehensiveworldview.

Weusethird‐partyresearchanddatasources(e.g.,independentandbrokeragefirmanalysis)toaugmentfinancialmodels,helpconfirminformation,andprovideadditionalinformation,insightandperspective.

Examplesofsomethird‐partysourcesofinformationforsecurityanalysisare:

• Annualandinterimfinancialreportsdistributedtoshareholdersbypubliccompanies,supplementedbyfinancialreleasestotheinvestmentcommunityprovidedbysuchcompanies;

• Informationaboutregulatoryenvironment,competingassets/technology,and/orlocalmarketsobtainedfromqualifiedprivatemarketinvestorsandserviceproviders;and

• Researchreports,statisticaltables,andothersecuritiesindustryresearchprovidedbybrokeragefirmsandindependentthird‐partyresearchfirmsconcerningcompanies,securities,markets,andeconomicandfinancialtrends.

RefertotheBrokeragePracticessectionofthisbrochureforadditionalinformationregardingresearchservicesobtainedusingsoftdollars.



Risks

Investinginrealestatesecuritiesandinfrastructuresecuritiesinvolvesrisks,includingthepotentiallossofprincipal.

Realestateequitiesaresubjecttoriskssimilartothoseassociatedwiththedirectownershipofrealestate,suchasfluctuationsinrentalincome,declinesinrealestatevaluesandotherrisksrelatedtolocalorgeneraleconomicconditions,increasesinoperatingcostsandpropertytaxes,potentialenvironmentalliabilities,changesinzoninglaws,andregulatorylimitationsonrent.Changesininterestratesmayalsoaffectthevalueofrealestatesecurities.

REITsarepooledinvestmentvehiclesthatown,andusuallyoperate,income‐producingrealestate.REITstypicallyincurfeesthatareseparatefromthosechargedbyamanagerorbroker.Accordingly,investorswillindirectlybearaproportionateshareoftheREITs’operatingexpenses,inadditiontopayingotherexpensesassociatedwiththemanagementandmaintenanceofanaccount.Inaddition,REITsaresubjecttothepossibilityoffailingtoqualifyfortax‐freepass‐throughofincomeundertheInternalRevenueCodeandmaintainingexemptionfromtheregistrationrequirementsoftheInvestmentCompanyActof1940,asamended.

Infrastructureequitiesaresubjecttoriskssimilartothoseassociatedwithdirectownershipofinfrastructureassets,whichcaninclude:changesinregulationsandtaxes;theavailability,cost,andconservationofenergyandfuel;highinterestcostsinconnectionwithcapitalconstructionprograms;andserviceinterruptionsduetoenvironmental,operationalorothermishaps.

MasterLimitedPartnershipsaretypicallycontrolledbyageneralpartner,andthereforeinvestorsinthelimitedpartnershipunitshavelimitedcontrolandvotingrights.MLPspresenttaxrisksforunitholdersassociatedwiththeownershipofpartnershipinterests,includinganychangesinthetaxstatusofthestructure.DistributionsfromMLPsaresubjecttochangeandmaybesubjecttodifferenttaxtreatmentsthandistributionsreceivedfromacorporationorREIT.MLPequitiesaresubjecttoriskssimilartothoseassociatedwithdirectownershipofenergyandinfrastructureassets,suchascommodityrisks,supplyanddemandrisks,operationalrisks,andregulatoryrisksamongothers.ChangesininterestratesmayalsoaffectthevalueofMLPs.CertainMLPsecuritiesmaytradeinlowervolumesduetotheirsmallercapitalizations,andmaybesubjecttomoreabruptorerraticpricemovementsandlowermarketliquidity.



Portfoliosconcentratedinrealestatesecuritiesorinfrastructuresecurities(includingMLPs)mayexperiencepricevolatilityandotherrisksassociatedwithnon‐diversification.

Equitysecuritieshistoricallyhavehighervolatilitythandebtsecurities.

Internationalinvestmentsinvolveriskofcapitalloss,includingfrom:unfavorablefluctuationincurrencyvalues;differencesingenerallyacceptedaccountingprinciples;oreconomicorpoliticalinstabilityinothernations.

InvestinginglobalsecuritiesalsooftenrequiresspotFXtransactions.Globalsecuritiesaredenominatedincurrenciesotherthanthebasecurrencyoftheclient’saccount,andthereforeFXtransactionsmustbeexecutedtoconverttoandfromdifferentforeigncurrenciesinordertopurchaseandsellsecuritiesinglobalmarkets.FXtransactionsaresubjecttofluctuationsinforeignexchangerates.

Certainmandatesincludecurrencyhedgingviaforeigncurrencyforwardcontracts. Aforeigncurrencyforwardcontractisaderivativeandisenteredintoinanticipationofchangesincurrencyexchangerates.Foreigncurrencyforwardcontractsdonoteliminatefluctuationsinthepricesofanaccount’sportfolioofsecuritiesorinforeignexchangerates,orpreventlossifthepricesofthesesecuritiesshoulddecline.Althoughcurrencyhedgingcanpotentiallyminimizetheriskoflossduetoadeclineinthevalueofthehedgedcurrency,itcouldalsolimitanypotentialgainfromanincreaseinthevalueofthecurrency.Currencytransactionscanresultinlossestoanaccount.Itispossibleforunrealizedlossesonforeigncurrencyforwardcontractsoccurringpriortocontractmaturitydatetoexceedavailablecashandresultintheaccountappearingtobelevered(wherethevalueoftheequitypositionsexceedthetotalvalueoftheaccount).

Currencytransactionsarealsosubjecttorisksdifferentfromthoseofotherportfoliotransactions.Foreigncurrencyforwardcontractsandrelatedinstrumentscanbeadverselyaffectedbygovernmentexchangecontrols,limitationsorrestrictionsonrepatriationofcurrency,andmanipulationsorexchangerestrictionsimposedbygovernments.Theseformsofgovernmentalactionscanresultinlossestoanaccountifitisunabletodeliverorreceivecurrencyinsettlementofobligationsandcouldalsocausehedgestoberendereduseless,resultinginfullcurrencyexposure.

CBREClarionmanagesaccountswithanabsolutereturnobjective,someofwhichincludetheabilitytosellsecuritiesshort.Sellingasecurityshortisaspeculativetechniqueandsubjectstheaccounttothetheoreticalpossibility



ofunlimitedloss.Additionally,ashortsalerequirestheaccounttomaintaincollateralwiththebrokerthatlentthesecurity,whichcreatesapotentialforcounterpartyriskshouldthebrokerexperienceinsolvency.Additionally,theabsolutereturnstrategymayimplementfrequentorshort‐termtrading.Frequenttradingwillresultinincreasedbrokeragecostsandpotentialtaxconsequences.

CBREClarionhasbroaddiscretioninthetypesofsecuritiesandinvestmenttechniquesemployedinmanagingtheAffiliatedPrivateFunds.Potentialinvestorsinsuchfundsshouldcarefullyreviewtheriskdisclosuresintheofferingdocuments.

Withincertainmandates,CBREClarionwillutilizeoptionsorotherderivativestohedgeorenhanceincome.Optionsareoftenmorevolatilethantheunderlyingsecurityandmaymagnifygainsorlosses.Sellingoptionsinvolvespotentiallygreaterriskbecausetheinvestmentisexposedtotheactualpricemovementoftheunderlyingsecurity.Also,duetothelowmarginrequirements,optionspotentiallyexposetheinvestortoahighdegreeofleverage.

CBREClarionreliesoncomputerizedinformationsystemsandnetworkstoconductourbusinessandmaintaindataaboutclientaccountsandouradvisoryservices.OurinformationsystemsaresupportedbyCBRE’sinformationtechnologyinfrastructureandbythird‐partyserviceproviders.Theseinformationsystemsareprotectedbyindustrystandardsecuritycontrols.Nevertheless,informationsystemscanbesubjecttoavarietyofpossiblesecurityincidentsorsimilareventsthatcouldpotentiallyresultin:

theunintendeddisclosureofconfidential,personallyidentifiable,orotherwisesensitivedatatounauthorizedparties,or

theintentionalmisappropriation,corruption,ordestructionofdatabymalicioushackersseekingtocompromisesensitiveinformationorcauseoperationaldisruption.

These“cybersecurity”incidentsmightpotentiallybecarriedoutbypersonsusingtechniquesthatcouldrangefromcircumventingnetworksecurityoroverwhelmingwebsites,tointelligencegatheringandsocialengineeringfunctionsaimedatobtaininginformationnecessarytogainaccesstoinformationsystems.

Ourinformationsecuritypoliciesandprocedures,aswellasthoseinplaceatCBREandourthird‐partyserviceproviders,containreasonabletechnicalandphysicalsafeguardsintendedtoprotectthesecurityandconfidentiality



ofthedataresidingwithintheinformationsystems.Informationsecuritypoliciesandproceduresincludereasonableprecautionstolimitthepotentialforcybersecurityincidents,andtoprotectdatafrominadvertentdisclosure,orwrongfulmisappropriationordestruction.Despitethereasonablenessofcontrolsandprecautions,theriskremainsthatcybersecurityincidentscouldpotentiallyoccurandmightresultinunauthorizedaccess,disclosure,misappropriation,corruption,ordestructionofconfidential,personallyidentifiable,orotherwisesensitiveinformation.Theconsequencesofsuchcybersecurityincidentscanincludemanyformsoffinancialdamageandthedisruptionofourbusiness.Shouldacybersecurityincidentoccurthatposesasubstantialriskofexposingclient‐relatedconfidential,personallyidentifiable,orotherwisesensitiveinformation,CBREClarionwillseektonotifyaffectedclientsinatimelymannerandinaccordancewithcommercialandregulatoryrequirements.

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Disciplinary Information Registeredinvestmentadvisersarerequiredtodiscloseallmaterialfactsregardinganylegalordisciplinaryeventsthatwouldbematerialtoaclient’sevaluationofafirmortheintegrityofthefirm’smanagement.

CBREClarionhasnotbeensubjecttoanylegalordisciplinaryeventswhichrequiredisclosureunderthisitem.Likewise,CBREClarionpersonnelhavenotbeensubjecttoanylegalordisciplinaryeventswhichrequiredisclosureunderthisItem.

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Other Financial Industry Activities & Affiliations Today,CBREownsamajorityofCBREClarionandourPrincipalgroupofexecutivesownsaminority,butmaterial,interest.

CBRE Group

ByvirtueofcurrentcommonownershipunderCBRE,CBREClarionisaffiliatedwithseveraltypesofentities,including,butnotlimitedto:

otherinvestmentadvisers; abroker‐dealer; arealestatebroker;and asponsor,generalpartner,managingmember,orsyndicatorof

privatefundsandotherpoolinvestmentvehicles.

Manyoftheseaffiliationsarenotmaterialtoouradvisorybusinessorourclients.SignificantaffiliationsareidentifiedinPart1ofCBREClarion’sFormADV.

Specifically,CBREClarionispartoftheCBREGlobalInvestorsbusinessline.Mr.Ferguson,theCEOofCBREClarion,isalsotheChiefExecutiveOfficerofCBREGlobalInvestors.TheprimaryU.S.entitywithinthebusinesslineisCBREGlobalInvestors,LLC,anaffiliatedadviserwhichprovidesdirectrealestateandrealestaterelatedinvestmentandassetmanagementservicestoitsclients.TheCBREGlobalInvestorsbusinesslineincludesanumberofotheraffiliatedcompaniesoperatingaroundtheworld.Theseinclude,amongothers:

CBREGlobalInvestors,LLC; CBREGlobalValueInvestors,LLC; CBREGlobalInvestors(Asia‐Pacific)Limited; CBREGlobalInvestorsJapanKK; CBREGlobalInvestors(UKFunds)Limited;and CBREGlobalInvestmentPartnersLimited.



AmorecompletelistofaffiliatesforCBREGlobalInvestors,LLCisprovidedintheCBREGlobalInvestors,LLCFormADVPart1Aavailableatwww.adviserinfo.sec.gov.

Lastly,CBRECapitalAdvisors,Inc.isaregisteredbroker‐dealerwhoserepresentativesmarketcertainfundssponsoredbyCBREGlobalInvestors.CBREClariondoesnotexecuteanyclienttransactionsthroughCBRECapitalAdvisors,Inc.

CBRE Clarion Subsidiary Advisers

CBREClarionhasfour(4)whollyownedsubsidiaries:

CBREClarionSecuritiesUKLimited(“CBREClarionUK”); CBREClarionSecuritiesHKGLimited(“CBREClarionHK”); CBREClarionSecuritiesPTYLimited(“CBREClarionAU”);and CBREClarionJapanKK(“CBREClarionJP”)

Assubsidiaries,theseentitiesmaintaincertainadvisoryrelatedbooksandrecordsintheirlocaloffice.

ThesesubsidiariesprovideinvestmentresearchtoCBREClarionunderintra‐companyagreementsaspartofthefirm’sgloballyintegratedinvestmentadvisorybusiness.Thesubsidiariesdonotprovideadvisoryservicestothird‐partyclients.However,itispossiblethat,inthefuture,non‐U.S.advisoryclientsmaycontractdirectlywiththesubsidiariesandCBREClarionwouldprovideadvisoryservicesthroughanintra‐companyagreement.CBREClarionpersonnelemployedbythesubsidiariesareassociatedpersonsofCBREClarionandprovideadvisoryservicesunderthesupervisionofCBREClarion.Accordingly,personnelofthesubsidiariesaresubjecttotheCBREClarionCodeofEthicsandComplianceManual.ThesubsidiariesarenotregisteredseparatelyasinvestmentadviserswiththeU.S.SecuritiesandExchangeCommissioninrelianceonthe“Unibanco”lineofno‐actionletters.



CBRE Clarion UK

CBREClarionUKisCBREClarion’sLondon,Englandoffice.CBREClarionUKisauthorizedbytheFinancialConductAuthorityintheUK(Ref.no.453053)foradvisingoninvestments,agreeingtocarryonaregulatedactivity,arrangingdealsininvestments,dealingininvestmentsasagent,makingarrangementswithaviewtotransactionsininvestments,andmanaginginvestments.

CBRE Clarion HK

CBREClarionHKisCBREClarion’sHongKongoffice.CBREClarionHKislicensedbytheSecuritiesandFuturesCommissioninHongKong(Ref.no.APY416)toprovideType4(advisingonsecurities)andType9(assetmanagement)activities.

CBRE Clarion AU

CBREClarionAUisCBREClarion’sSydney,Australiaoffice.CBREClarionAUholdsanAustralianfinancialserviceslicenseissuedbytheAustraliaSecuritiesandInvestmentCommission(ASFLlicenseno.313203).

CBRE Clarion JP

CBREClarionJPisCBREClarion’sTokyo,Japanoffice.CBREClarionJPisregisteredwiththeJapanFinancialServicesAgency(membershipno.2584)asaninvestmentadvisoryandagencybusiness.

CBRE Clarion Affiliated Funds

CBREClarionservesastheadvisertothreeaffiliatedSEC‐registeredinvestmentcompanies(“AffiliatedRICs”):

• CBREClarionGlobalRealEstateIncomeFund(NYSE:IGR),anSEC‐registeredclosed‐endinvestmentcompanytradedontheNewYorkStockExchange,

• CBREClarionLong/ShortFund,aportfolioseriesoftheAdvisors’InnerCircleFund,anSEC‐registeredopen‐endinvestmentcompany,and



• CBREClarionGlobalInfrastructureValueFund,aportfolioseriesoftheAdvisors’InnerCircleFund,anSEC‐registeredopen‐endinvestmentcompany.

CBREClarionservesasthegeneralpartner(directlyorindirectly)ortheinvestmentmanagertothreeaffiliatedprivatefunds(collectivelyreferredtoas“AffiliatedPrivateFunds”).

Specifically,theAffiliatedPrivateFundsinclude:

CBREClarionGlobalRealEstateFund,L.P.,atotalreturnfundinvestinginglobalrealestatesecurities;

CBREClarionRealAssetLong/ShortFund,L.P.,anabsolutereturnfundinvestinginlongandshortpositionsinglobalrealassetsecurities;and

CBREClarionMLPFund,L.P.,atotalreturnfundinvestingprimarilyinenergyMLPs.

Asofthedateofthisbrochure,theCBREClarionRealAssetLong/ShortFund,L.P.andtheCBREClarionMLPFund,L.P.,arecomprisedsolelyofproprietaryassets(assetsofCBREClarionorCBRE).CBREClarionwhollyownsthegeneralpartnerentityfortheCBREClarionMLPFund,L.P.(CBREClarionMLPFundGP,LLC).

TheAffiliatedPrivateFundsaremanagedalongsideclientaccounts.OurpolicyrelatedtoinvestinginthesamesecuritiesasotherclientsissummarizedintheBrokeragePracticessectionofthisbrochure.

Advisory Representatives Registered with an Unaffiliated Broker Dealer

CertainCBREClarionemployeesarealsoregisteredrepresentativesofForesideFundServices,LLC,anunaffiliatedbroker‐dealer.Theseemployeesareregisteredrepresentativesasrequiredtomarketand/orprovideservicestoinvestorsintheAffiliatedRICsandAffiliatedPrivateFunds,aswellascertainfundsthataresub‐advisedbyCBREClarion.ForesideFundServices,LLCdoesnotprovideanyexecutionservicesfor



CBREClarionclientsrelatedtoadvisoryservices.Additionally,theCBREClarionemployeesthatareregisteredrepresentativesofForesideFundServices,LLCdonotreceiveanycompensationforsecuritiestransactionsmadebyCBREClariononbehalfofadvisoryclients.CBREClarionandForesideFundServices,LLChavenootheraffiliationbeyondtherelationshipwiththeregisteredrepresentatives.

Outside Positions and Relationships of CBRE Clarion Personnel

WithinCBRE,CBREClarionpersonnelparticipateoncorporateleadershiprolesand/ormanagementcommittees.Mr.Ferguson(CBREClarion’sCEOandGlobalChiefInvestmentOfficer)alsoservesastheChiefExecutiveOfficerandGlobalChiefInvestmentOfficerofCBREGlobalInvestors.Intheseroles,Mr.FergusonhasresponsibilityforoverseeingtheexecutiveandinvestmentmanagementoperationsofCBREGlobalInvestors,andcoordinatingtheinvestmentdecision‐makingandprogramofferingsacrossbusinesslines.Mr.FergusonchairstheCBREGlobalInvestors’GlobalExecutiveCommitteeandGlobalInvestmentCommittee.

OutsideofCBREaffiliatedentities,CBREClarionpersonnelaremembersorparticipantsinvariousindustryorganizations,suchasEPRA,APREA,andNAREIT.CBREClarionsupportstheseactivitiesanddoesnotbelievethatthesemembershipsorparticipationraiseanymaterialconflictsofinterest.

Beyondindustryorganizations,CBREClarionpersonnelparticipateontheboardsofinvestmentcompanies.Specifically,Mr.FergusonistheChiefExecutiveOfficerandaninterestedtrusteeofCBREClarionGlobalRealEstateIncomeFund(IGR).Mr.WilliamZitelli(CBREClarion’sGeneralCounsel)servesastheChiefComplianceOfficerforIGR.Mr.JonathanBlome(CBREClarion’sChiefFinancialOfficer)servesastheChiefFinancialOfficerforIGR;IGRisanAffiliatedRIC.

Additionally,Mr.JarrettB.Klingservesasanindependenttrusteeforanunaffiliatedregisteredinvestmentcompany,theHCCapitalTrust.Mr.Klingalsoservesasanationaltrusteetoacharitableorganization,theBoy’sandGirl’sClubsofAmerica.

CBREClarionpersonnelareactiveincommunity,charity,andprofessionalorganizations,andsomeparticipateinoutsidebusinessactivitiesunrelatedtoadvisoryservices.TheseactivitiesaremonitoredandCBREClariondoes



notbelievethatsuchactivitiesraiseanymaterialconflictsofinterest.CBREClarionpersonneldonotserveontheboardsofanypublicrealassetcompanieswhichwouldbeeligibleforclientaccounts.

Lastly,CBREClarionpersonnelalsohavefamilyrelationshipswithotherparticipantsintheindustry(suchasbrokersandconsultants),orrealestateorinfrastructurecompaniesinthefirm’sinvestableuniverse.CBREClarionsurveysemployeesregardingtheserelationshipsandensuresthattheserelationshipsdonotcreatematerialconflictsofinterestsinmanagingclientaccounts.

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Code of Ethics, Participation or Interest in Client Transactions, and Personal Trading

CBRE Clarion Code of Ethics

CBREClarionadoptedaCodeofEthicstoclearlystatehowwepreventpersonalconflictsofinterestandconductfromadverselyimpactingourclients.

TheCBREClarionCodeofEthicsappliestoallemployees,officers,directors,orindependentcontractorsworkingforCBREClarionoranyitssubsidiaries.AsarepresentativeofCBREClarion,itisunderstoodthatallpersonnelwillactwithintegrityandgoodfaith.

CBREClarionisafiduciaryforitsclients.ThismeansthatallCBREClarionpersonnelhaveadutytoactfairly,honestly,andinthebestinterestsofourclientsandinvestors.

Partoffulfillingourfiduciarydutyisensuringthatpersonalinterestsandconductwhichmightconflict–orappeartoconflict–withtheinterestsofclientsaredisclosedandcontrolled.ThecontrolswehaveputinplacetoaddressthesepotentialconflictsaresummarizedintheCodeofEthics.

Specifically,theCodeofEthicsoutlines:

thegeneralprinciplesofhowweconductbusiness; theconditionsweapplytothepersonaltradingofourpersonnel; theprinciplesofourprofessionalconduct;and theconditionsofpersonnelactivitiesoutsideandapartfromCBRE

Clarion.

Lastly,butnolessimportantly,theCBREClarionCodeofEthicssatisfiestheregulatoryrequirementsoftheInvestmentAdvisersActof1940(Rule204A‐1)andtheInvestmentCompanyActof1940(Rule17j‐1).



AllCBREClarionpersonnelareexpectedtounderstandandabidebytheCodeofEthics.AllpersonnelarerequiredtoacknowledgereceiptandacceptanceoftheCodeofEthicsuponjoiningthefirmandthenonanannualbasis.

AcopyoftheCBREClarionCodeofEthicsisavailableuponrequest.

CBRE Clarion Business Principles

Inrecognitionofthetrustandconfidenceplacedinusbyourclients–andbecausewebelievethatouroperationsshouldbenefitourclients–CBREClarionexpectsallpersonneltoconductthemselvesinaccordancewiththefollowingprinciples:

Theinterestsofourclientsareparamount.CBREClarionpersonnelmustplaceclientinterestsbeforetheirown.

CBREClarionpersonnelmustavoidactionsoractivitiesthatbringintoquestionourindependenceorjudgment.

CBREClarionpersonnelmustactwithintegrity,respect,competence,loyalty,andprofessionalism.

Thefollowingconditionsareextensionsoftheaboveprinciples:

Ourpersonnelmustcomplywiththefederalsecuritieslawsandotherapplicableregulations,includingthoserelatedtoprofessionaldesignationsorlicenses.Personnelmustnotknowinglyparticipate,orassistin,anylegalorethicalviolationofthoselawsorregulations.

Ourpersonnelmustnotcommitanycriminalactwhichcouldcallintoquestiontheirhonesty,trustworthiness,orfitnessasfinancialprofessionals.

Ourpersonnelmustnotengageinanyactivitywhichismanipulative,fraudulent,ordeceptivetoaclientorinvestor.Thisprincipleappliestoprospectiveclientsandinvestors.

Ourpersonnelmustnotmisleadanyclientorinvestorbymakinganyuntruestatementofmaterialfactorbyfailingtofullyandaccuratelydisclosematerialinformation.Thisprincipleappliestoprospectiveclientsandinvestors.



Furthermore,asaninvestmentadviser,CBREClarionwilldealfairlywithallcustomers,includingwhenprovidinginvestmentrecommendationsandmakinginvestmentdecisions.

InadditiontoCBREClarion’sgeneralbusinessprinciplesandtheguidelinesforpersonalinvestments,CBREClarionpersonnelmustfollowgeneralstandardsofprofessionalconduct.Thesestandardsarebasedonregulationandexpectedbestpracticeswithinourindustry.

TheCodeofEthicsoutlinesgeneralstandardsofprofessionalconductrelatingto:

Preventingthemisuseandcommunicationofmaterialnon‐publicinformation(alsoreferredtoas“insideinformation”);

receivingorofferingofgifts,entertainment,andpoliticalorcharitablecontributions;

preservingconfidentialinformationandtheprivacyofclients;

providinginvestmentadvicetoclients;and

fairnessincommunicationswithclients,investors,prospects,andgeneralpublic.

Personal Investments of CBRE Clarion Personnel

CBREClarionimposescertainrestrictionsandconditionsonthepersonalinvestingactivitiesofitspersonnel.

NoPersonalInvestmentsinRealAssetSecurities:CBREClarionprohibitsallpersonnelfromdirectlyinvestinginauniverseofrealestateandinfrastructuresecurities,definedaseligibleforclientaccounts.CBREClarionpersonnelcannotinvestinanysecuritywhichisrecommendedforclients.

Pre‐ApprovalRequiredforPersonalInvestments:CBREClarionpersonnelmustobtainpre‐approvalfromtheCompliancedepartmentbeforemakingtransactionsinpersonalinvestmentaccountsandbeforeinvestinginanyinitialpublicoffering,limited



offering(suchasaprivatelyplacedinvestment),orinterestincommercialrealestate.

MinimumInvestmentPeriodforPersonalInvestmentsinFundsManagedbyCBREClarion:CBREClarionrequiresaminimuminvestmentperiodoncertainpersonalinvestments.CBREClarionpersonnelareheldtoa30‐dayinvestmentperiodforallpersonalinvestmentsintheAffiliatedRICsoranyotherfundssub‐advisedbyCBREClarion.Specifically,anypurchasemustbeatleast30daysfromthemostrecentsaleandanypurchasemustbeheldforatleast30days.

ReportingofPersonalInvestmentAccounts,Holdings,andTransactions:CBREClarionpersonnelmustreportalistofpersonalsecuritiesaccounts,investmentholdings,andinterestsincommercialrealestateatcommencementofemployment.Onaquarterlybasis,allpersonnelmustreporttheirpersonalinvestmentandcommercialrealestatetransactions.Onanannualbasis,allpersonnelmustreporttheirpersonalinvestmentholdingsandinterestsincommercialrealestate.

Preventing the Misuse of Material Non-Public Information

CBREClarionmaintainsinformationbarrierstopreventthecommunicationormisuseofmaterialnon‐publicinformation(insideinformation)andothersensitiveinformationbeyondthoseindividualswitha“needtoknow.”CBREClarion’sinformationbarriersaddresscompany/securityspecificmaterialnon‐publicinformation,aswellasinformationaboutclientportfolios(whichisalsoconsideredmaterialnon‐publicinformation).Whencomingintocontactwithmaterialnon‐publicinformation,CBREClarionpersonnel:

cannottrade(fortheirownaccountsorforclientaccounts)whileinpossessionofsuchinformation;

cannotcommunicateorotherwisetransmitsuchinformation,eitherinternallywithinCBREClarion,toaffiliatesofCBREClarion,ortooutsidethird‐parties;and

mustreportthesituationtotheLegal/Complianceteamimmediately.



InsituationswhereCBREClarioninvestmentpersonnelmayhaveaccesstomaterialnon‐publicinformationthroughinvolvementintheinvestmentprocessforaffiliates(suchisthecaseforCBREGlobalInvestors),informationbarriersand“wall‐off”procedureshavebeenimplementedtopreventthecommunicationormisuseofsuchinformation.

Policies on Gifts and Entertainment, Political Contributions, and Anti-Corruption

CBREClarionbelievesthatofferingnominalgiftsandentertainmentisacustomarywaytostrengthenbusinessrelationshipsand,withcertainrestrictions,canbealawfulbusinesspractice.CBREClarionpersonnelmayofferandacceptappropriate,lawfulgiftsandentertainmentinconnectionwiththeirworkwithcustomersandother,non‐governmental,businesspartners.However,suchgiftsandentertainmentmustcomplywiththelimitationsandconditionssetforthintheCBREClarionGifts,Entertainment,andClientContributionsPoliciesandProcedures.

Asamatterofpolicy,giftsandentertainmentandanythingofvaluemaynotbeoffered,accepted,orsolicitedifdoingsocreatestheimpressionthatCBREClarioniseitherseekingtoinducetherecipienttoenterintoabusinessrelationshipwiththefirm(byofferingagift,etc.),orappearstobeunderanobligationtoenterintoabusinessrelationshipwithapersonfromwhichanythingofvalueisaccepted.Toavoidthatperception,thepolicyplacesspecificlimitsontheamountandfrequencyofgiftsandentertainment.

CBREClarionanditsemployeesdonotusepoliticalcontributionsorotherpaymentstogovernmentofficialswiththeintenttoinfluencedecisionstoselectorretainCBREClarionasaninvestmentadviserforgovernmententities.Thepracticeofusingpoliticalcontributionstoinfluencethesolicitationofadvisoryservicesforgovernmententitiesisconsidered“pay‐to‐play”andisprohibitedundertheInvestmentAdvisersActof1940.

CBREClarion’spolicylimitstheamountofpersonalpoliticalcontributionswhichpersonnelcanmaketocandidatesforgovernmentoffices.Additionally,thepolicyimposespre‐approvalandreportingrequirements,aswellaslimitingpersonalactivitiesonbehalfofpoliticalactioncommittees.



CBREClarionbelievesthatbriberyinanyformisunacceptable.Payments,oranypromiseofapayment,toagovernmententity,acommercialentity,orindividualintendedtoinfluenceanyactordecisionofsuchpersonororganizationarenottolerated.Thefirm’sAnti‐BriberyandAnti‐CorruptionPoliciesandProceduresprohibitbribes,kickbacks,facilitatingorgreasepayments,cashadvances.Thepolicyalsorequirespre‐approvalforanypayments(includingtravel,meals,gifts,andentertainment)togovernmentofficials.

Conflicts Involving Client Transactions

CBREClarionmanagesAffiliatedPrivateFundswhichcontainproprietaryassets(eitherpartiallyorexclusively)andtheseFundsaremanagedalongsideclientaccounts.

OurpolicyrelatedtoinvestinginthesamesecuritiesasotherclientsissummarizedintheBrokeragePracticessectionofthisbrochure.

CBREClarion’sroleintheformationandmanagementoftheAffiliatedPrivateFundsalsoraisesotherpotentialconflictsofinterest.Specifically,CBREClarion:

• maybeentitledtoaperformancefee;• haseffectivecontrolofthefunds’operations;• hasanincentivetodistributeinterestsinthefunds;• allowscertainemployeestoinvest,directlyorindirectly,inthe

funds;and• affiliateshaveinvestedasignificantamountofcapitalinthe

funds.

DistributingtheAffiliatedPrivateFunds:

TheAffiliatedPrivateFundsareunregisteredsecurities.Therefore,CBREClarion,asthegeneralpartner(orinvestmentmanager),distributesthefunds.Ifanadvisoryclientexpressesaninterestinaninvestmentmandatewithincertainparameters,CBREClarionmayrecommendaninvestmentinoneoftheAffiliatedPrivateFunds.Theserecommendationswillonlybemadeafterconsideringtheclient’seligibilityandincompliancewithapplicableprivateplacementconditions.



SideAgreements:

CBREClarionhasenteredintoagreementswithcertaininvestorsintheAffiliatedPrivateFundswhichamendthetermsoftheofferingmemorandumand/orrelateddocuments.Theseagreementsarerareandlimited.Specifically,theseagreementsaddress:

• managementfees;• theabilitytomakeadditionalinvestments(capacity)andpartial

redemptionconditions;and• certaintypesofnoticeprovisions(suchas“keyman”).

CBREClarionwillnotagreetoprovideanyinvestorwithinformationunlessthesameinformationwouldbeavailabletoallotherinvestorsuponrequest.CBREClarionwillnotprovideanyinvestorwithpreferentialliquiditytothedisadvantageofotherinvestors.

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Brokerage Practices

Inallinstances,CBREClarionexpectstoreceivefullinvestmentdiscretionaryauthorityoverclientaccounts.Fullinvestmentdiscretionaryauthorityincludestheabilitytodetermine:

thesecuritiestobeboughtorsold, theamountofsuchsecuritiestobeboughtorsold,and thebrokertobeusedtoexecutetransactions.

WhenCBREClarionhasfulldiscretiontoselectbrokers,itwillplacetransactionswithbrokersbelievedtoprovidethebestcombinationofexecutionprice,brokeragecharge,andresearchservices.

Investmentdecisionsforalladvisoryclientsaremadeinthecontextofeachclient’soverallmandate,includingitsinvestmentobjective,geographicfocus,andbenchmark.Clientswithsimilarinvestmentmandatesaremanagedinaccordancewithmodels,subjecttofactorsuniquetoeachaccount,includinginvestmentrestrictionsandcashlevels.PortfolioManagersdeterminethedesiredcompositionforeachinvestmentmodel.Investmentdecisionsrelatedtoeachmodelaregenerallyimplementedacrossaccountsmanagedinaccordancewiththeparticularmodel,withconsiderationforaccount‐specificfactors.Changestoamodelrequiringtradesareenteredintotheordermanagementsystemwhichautomaticallygeneratesthetrades(purchasesandsales)necessarytoimplementtheparticulartargetweightings.

Trade Aggregation (“Bunching”) and Allocation

Foraparticularsecurity,thetradeisgeneratedonanaggregatedbasisforallparticipatingaccounts,whichmayincludeaccountsinmultiplemodels.Asgenerated,thetradeincludesapre‐allocationamongparticipatingaccounts.CBREClarionintendsthataccountsineachmodelbemanagedsimilarlyasdemonstratedbytheuseofportfoliomodelsandtargetweightings.Asaresult,thepre‐allocationtakesintoaccounttheweightingoftheparticularsecurityineachaccountcomparedtotherelevantmodelweightestablishedbythePortfolioManagers,aswellasthecashpositionofeachaccount(surplusorshortfallincashasaresultofadditionsorwithdrawals).Oncethepre‐tradeallocationisestablished,thetradeis



placedandexecuted.Eachaccountparticipatinginthetradereceivesitsproportionateshareoftheamountexecuted,whetherinitsentiretyorapartialexecution,inaccordancewiththepre‐allocation.Inthisregard,CBREClarionensuresthattheaggregationandallocationofsecuritiestradesisconductedonafairandequitablebasisinaccordancewithapplicableregulation.

Tradingactivityforthelong‐shortabsolutereturnaccountsmaybeconductedthroughtheaccounts’primebrokers,andinsuchinstances,wouldnotbeaggregatedwithtradesforCBREClarion’sotheraccounts.

Investments in IPOs

WhenCBREClarionparticipatesinanIPO,thePortfolioManagementTeamdeterminesallocationdecisions,butsuchdecisionsmustgenerallybemadeacrossallaccountsinaparticularstrategyand/ormodel.Inaddition,thePortfolioManagermustprovideCompliancewithawrittenexplanationoftherationalewhytheIPOwasallocatedtothespecifiedaccounts.TheallocationandrationalearereviewedbytheLegal/Complianceteamtoensurethatallocationsareinaccordancewiththefirm’spolicy.ThereareinstancesinwhichaclientaccountwillbeexcludedfromanallocationofanIPOduetoclientspecificrestrictionsandlimitsoneligibility.

Long and Short Positions

CBREClarionprovidesadvisoryservicestoanAffiliatedRICandanAffiliatedPrivateFundwhichhaveanabsolutereturninvestmentobjectiveimplementedthroughbothlongandshortpositionsinrealestateorrealassetsecurities.TheseaccountsarecollectivelyreferredtoastheCBREClarion“Long/ShortAccounts.”

Notallaccountsmanagedwithanabsolutereturnobjectiveuselongandshortpositions.

Long/ShortAccountsinvestinsecuritieswhicharealsorecommendedforotheradvisoryclients.Long/ShortAccountsaremanagedinaccordancewithdifferentmodelsthanlong‐onlymandates.ItispossiblethatinvestmentopportunitieswillberecommendedfortheLong/ShortAccountsinadditionto(orinsteadof)otheradvisoryclients.



ConflictsarisewhenasecurityissoldshortfortheLong/ShortAccountsatthesametimeasthesecurityisheldasalongpositionforotherclientaccounts.TheLong/ShortAccountsarepermittedtoshortsellsecuritiesrecommendedforotherclientaccountsprovidedthat:

otherclientaccountsarenotactivelysellingthesecurity,and thePortfolioManagersdeterminethatotherclientaccountswillnot

beginactivelysellingthesecurity.

Inourpolicy,“activelyselling”isdefinedasareductionofatargetweightforthesecurityinamodelthatcausesasellprogram.Thisdefinitionisspecificallyintendedtoexcludesalesofthesecuritynecessitatedbytheneedtoraisecashinoneormoreclientaccountsinaccordancewithclientinstructionsorotherwise.ThePortfolioManager(s)thatdeterminesifotherclientaccountswillbeginactivelysellingthesecuritycannotbethesameasthePortfolioManager(s)thatrecommendedtheshortsale.

Ifasituationariseswherethedecisionto“activelysell”wasnotforeseenwhentheshortsalerecommendationwasclearedbythedeterminingPortfolioManager(s),wewillnormallypermitanexceptiontothepolicy.

Transactions Between Client Accounts

Asamatterofpolicy,CBREClariondoesnotinstructtransactionsforasecuritytobesoldbyoneclientandwiththosesharestobepurchasedbyanotherclient(“crosstransaction”).However,CBREClarionhasaprocesstoarrangeforacrosstransactioninsituationswhereitwouldbeinthebestinterestsandinaccordancewiththeinvestmentobjectivesofbothclients.Ifsuchasituationarises,CBREClarionwouldfirstdeterminetheclient’seligibilityandpoliciesregardingcrosstransactions.ERISAplanaccounts(orotheraccountsgovernedbysimilarlawsandregulations)wouldnotparticipateincrosstransactions.If,aftersuchdetermination,acrosstransactionweretobeeffected,itwouldbeexecutedthroughanon‐affiliatedbroker‐dealeratanindependentlydeterminedmarketprice(suchasclosingpriceorVWAPonthetradedate)andonlywhenthepurchasingaccountpaysthesellingaccountcash.Sinceacrosstransactionwouldbeexecutedthroughabroker‐dealer,itwillusuallyincuranominal,customarytransfercharge.ThesechargesarenotpaidtoCBREClarion.CBREClarionwillnotexecute“agency”crosstransactions,whereitactsasthebroker.



Best Execution

Asafiduciary,CBREClarionhasanobligationtoseek“bestexecution”ofclients'transactionsunderthecircumstancesoftheparticulartransaction.TheCBREClarionBestExecutionCommitteeoverseestheexecutionqualityofsecuritiesandspotFXtransactions.

TheBestExecutionCommitteeconsistsofSeniorGlobalPortfolioManagers,theChiefOperatingOfficer,theChiefFinancialOfficer,andtheHeadTrader;theChiefComplianceOfficerservesasanadvisortotheCommittee.TheBestExecutionCommitteemeetsquarterlytoanalyzebrokersandreviewthefirm’ssecuritiestradingcapabilities.

Webelievethatthedeterminativefactorforbestexecutiononsecuritiestransactionsisnotthelowestpossiblecommissioncostbutwhetherthetransactionrepresentsthebestqualitativeexecutionfortheclientaccount.Inevaluatingbrokers,wewillconsiderthefullrangeandqualityofabroker'sservicesinplacingbrokerage.

SecuritiesbrokersareevaluatedandrankedeachquarterbyCBREClarion’sInvestmentAnalysts,Traders,andSecuritiesOperationspersonnel.Theevaluationisconductedbyregion,withinputfromresponsiblepersonnelintheregion.TheTradersresponsibleforthelocalmarketassessexecutionfactors,suchas:

explicittradingcosts(commissionsandrelatedfees); theutilityofalgorithmictradingsystemsaccessiblethroughthe

broker;and thebroker’sabilityto:(a)providefastandefficientexecution,(b)

achievepriceimprovementacrossmarkets,(c)minimizemarketimpactandrelatedimplicittransactioncosts,and(d)maintainconfidentialityoforders.

PortfolioManagersandInvestmentAnalystsprovideinputbasedon:(a)thebroker’sfamiliaritywiththecompaniescomprisingthefirm’sinvestableuniverse;(b)themarketforthosecompanies’equitysecurities;and(c)thebroker’slevelofparticipationinprimaryandsecondaryissuanceofthosecompanies’equitysecurities.TheSecuritiesOperationspersonnelprovidesa“pass/fail”scorereflectingthebroker’sabilitytoefficientlyandaccuratelysettletradestoclientaccounts.Riskfactors,suchastheriskofsettlementerrorsandcounterpartycreditrisk,arealsoconsidered.



Thisquarterlyevaluationandrankingsystemprovidesthebasisfordeterminingtheselectionofbroker‐dealerstoexecuteparticulartransactions.TheBestExecutionCommitteereviewstheallocationofcommissionsamongbroker‐dealerstoensurethatthebrokersprovidingbetterexecutionarereceivingproportionateallocationsofcommissions.Duringitsquarterlymeeting,theBestExecutionCommitteeoverseesthequalityofexecutionachievedbytheTradersbyreviewingafirm‐wideTransactionCostAnalysisReportcompiledusingdataavailablethroughathird‐partyfirm.

Incertainsituations,CBREClarionhasdiscretiontoinstructspotFXtransactions.CBREClarionexecutesspotFXtransactionssolelytofacilitatesecuritiestransactionsdenominatedincurrenciesotherthanthebasecurrencyoftheclientaccount.InevaluatingandseekingbestexecutiononspotFXtransactions,weconsiderthecounterparty’sabilitytoprovidecompetitiverateswithtransparency.WebelievethatthedeterminativefactorforbestexecutiononspotFXtransactionsiswhetherclientscanobtainsimilarrateswhicharecompetitivecomparedtothemarket,notnecessarilyobtainingthebestrateoftheday.TheBestExecutionCommitteereviewstheexecutionqualityofspotFXcounterpartiesthroughreportsofexecutionstatisticsprovidedbyathird‐partyfirm.

CBREClariondoesnotandwillnotconsiderabroker’ssaleofaffiliatedproductsorservicesinevaluatingorselectingbroker‐dealers.

Client-Directed Brokerage – Including Commission Recapture

Asageneralmatter,CBREClarionexpectstoreceivefulldiscretiontoselectbrokers.CBREClarionrecognizesdirectedbrokeragearrangementsareawidespreadindustrypracticeandthefirmtriestohonorclientrequestsforthesearrangements.However,realassetstocks,particularlyoutsidetheU.S.,arenotgoodcandidatesfordirectedbrokeragearrangementssincebrokerflexibilityisvitallyimportantinachievingbestexecution.Therefore,CBREClarionmaynotbeabletofulfillalldirectedcommissiontargets.ClientsshoulddiscusssuchmatterswithCBREClarionpriortoenteringintoaninvestmentmanagementagreement.

IntheeventthataclientdirectsCBREClariontoexecuteaportionofportfoliotransactionsthroughaparticularbroker‐dealer,itshouldbeunderstoodthatsucharrangementsmayimpactCBREClarion’sabilityto



ensurebestexecution.DirectedbrokeragearrangementscurtailCBREClarion’sexpertiseinselectingbroker‐dealerswhoprovidebestexecutionbyimpairingCBREClarion’sabilitytonegotiatecommissionratesandothertermsonbehalfofthoseclients.DirectedbrokeragearrangementscanpreventCBREClarionfromaggregatingaclient’sorders,whichcanfurtherlimitexecutionquality.Thelimitationsofdirectedbrokeragearrangementscanresultindisparitiesinclientcommissionchargesandexecutionpriceswhencomparedtoaccountswithoutdirectedbrokerage.

Inanattempttominimizethisimpactandwhenpossible,CBREClarionoftenaggregatesdirectedbrokeragetradeswithnon‐directedtrades,andrequeststheexecutingbrokerto“step‐out”creditforthedirectedportionofthetradetothedirectedbroker.Inthisscenario,theexecutingbrokerwouldreceiveareducedtotalcommission.“Step‐out”trades,however,canonlybeexecutedfortransactionsinU.S.securities.

Giventhelimitationson“step‐outs,”combinedwiththeneedforbrokerageflexibilityinglobalmarkets,CBREClarionmayonlysatisfydirectedbrokeragetargetstoanextentwhichisproportionaltotheamountofU.S.securitiesinaclientaccount.

Forexample,foraglobaltotalreturnaccountcomprised50%ofU.S.securitieswitha25%directedbrokeragetarget,CBREClarionwouldreasonablytargetsatisfyingadirectedbrokeragetargetof12.5%(50%U.S.securitiesx25%target=12.5%).

Insomesituations,aclientmayengageaconsultantthroughanarrangementwhichincludespre‐paidornegotiatedbrokeragecommissions.Inthesesituations,theconsultantmayrecommendCBREClarion,leadingtoanadvisoryrelationshipbetweenCBREClarionandtheclient.Whentheclient’sarrangementwiththeconsultantincludescommissionsbundledintheconsultant’sfeetoclient,CBREClarionwillregardthearrangementasafullydirectedbrokeragearrangement.CBREClarion’sabilityorinabilitytohonorthedirectedbrokeragearrangementmayinfluencesubsequentrecommendationsbytheconsultant.Likeotherdirectedbrokeragearrangements,thesearrangementsmaynotresultinthemostfavorableexecutionqualityfortheclient.



Soft Dollar Arrangements

IncompliancewithSection28(e)oftheSecuritiesExchangeActof1934regardingsoftdollars,CBREClarionreceivescertainresearchand/orbrokerageservicesfrombrokersexecutingclienttransactions.Inasoftdollararrangement,aninvestmentadviserreceivescreditfromabrokeragefirmbasedonthecommissionspaidbytheadviser’sclients.Theadviserusesthesecreditstopayforresearchandbrokerageproductsandservices,whichareprovidedbythebrokerorathirdparty.Softdollararrangementscaninfluenceanadvisertouseabrokerbasedonaninterestinreceivingresearchandotherproductsorservices,ratherthansolelytheclient’sinterestinreceivingthemostfavorableexecution.

Asdescribedbefore,CBREClarionusesitsbesteffortstoseekbestexecutionofclienttransactions.Inselectingabroker‐dealerforaparticulartransactionwhenmorethanoneiscapableofprovidingbestexecution,CBREClarionmayconsidertheprovisionofresearchand/orbrokerageservicesasoneofthedeterminingfactors.Byselectingasoftdollarbroker,clientaccountscouldbechargedcommissionsgreaterthantheamountthatthebroker(orevenanotherbroker)wouldchargewithoutsoftdollars,butstillwithintherangeapprovedbytheBestExecutionCommittee.

Ingeneral,CBREClarionreceivesalimitedamountofresearchand/orbrokerageservicesthroughsoftdollararrangements.Researchand/orbrokerageservicesobtainedwithsoftdollarsinclude:

Marketdata,includingstockquotes,lastsaleprices,andtradingvolumes(suchasBloomberg,exchangedata);indexandbenchmarkdata;economicdata,andcreditdata,trends,andmarketconditions;companyresearchreports,includingcompanyfinancialdata;financial,industry,andeconomicpublications(includingtrademagazinesandtechnicaljournals)withspecializedcoverageoftherealassetmarketsandrelatedsecurities;anddiscussionswithresearchanalystsandmeetingswithcorporateexecutives.

Advicefrombroker‐dealers(orfromexecutionmanagementsystems)regardingorderexecution,includingadviceontradingstrategies,marketcolor,andliquidity.

Portfoliomodeling,analytics,andmonitoringsoftware,includingcapabilitieswithinportfoliomanagementandtradingsystemsusedforpre‐tradeandpost‐tradeanalytics(suchasFactSet,orthetradeordermanagementsystem).



Ordermanagement,executionmanagement,androutingsystemstoeffectsecuritiestransactions,includingthosetofacilitatetradeclearing,settlement,matching,confirmation,andaffirmation(suchasthetradeordermanagementsystem,Omgeo,CTM,BBHInfomediary);andconnectivityandcommunicationslineswithbrokerandotherrelevantpartiestoplaceandcompletetrades(suchasaFIXprovider).

ResearchandbrokerproductsandservicesreceivedthroughsoftdollararrangementsassisttheInvestmentTeamwithmakingandexecutinginvestmentdecisions.Notallclients’transactionsgeneratesoftdollarcredits;someclientsinstructCBREClariontoprohibitsoftdollarcommissionsfromtheirtransactions(seethenextsectionformoreinformation).Therefore,someofthebrokerageand/orresearchservicesreceivedbenefitsclientaccountsotherthanthoseaccountswhosetransactionsgeneratethesoftdollarcredits,andsomeclientswillgeneratemoresoftdollarcommissionsthanothers.

Researchand/orbrokerageproductsandservicesobtainedwithsoftdollarsareevaluatedbytheBestExecutionCommitteeandtheCompliancedepartmentatleastannually.CBREClarionmakesagoodfaithdeterminationthatthecommissionschargedbyasoftdollarbroker‐dealerarereasonableinlightofthevalueoftheresearchand/orbrokerageservicesprovided.Aspartofbestexecution,CBREClarionmakesagoodfaithefforttoallocatethegenerationofsoftdollarcreditsacrossclientaccountsfairly.

Certainresearchand/orbrokerageproductsandservicesobtainedwithsoftdollarsareusedforpurposesbeyondsimplyresearchorbrokerage(theseareconsidered“mixed‐use”).Thesemixed‐useproductsorservicesareevaluatedtomakeagoodfaithdeterminationregardingtheappropriateproportionofthecosttobepaidusingsoftdollars.ThebalanceispaidbyCBREClarionoutofitsownfunds,sometimescalled“harddollars.”Thisdeterminationhasaninherentconflictofinterest,inthatCBREClarionwilluseitsownfundstocovertheharddollarcostportionformixed‐useproductsorservices.TheCompliancedepartmentevaluatesthegoodfaithallocationsofmixed‐useservicesatleastannually.



Restricted Brokers

Similartoadirectedbrokeragearrangement,certainclientsmayinstructCBREClariontoprohibitorotherwiselimittradingthroughaparticularbroker.Certainclientsprohibitsoftdollarcreditsfrombeinggeneratedfromtheirtransactions.Otherclientsmaybeaffiliatedwithaparticularbrokerandprohibitconflictedtrades.Intheseandsimilarsituations,CBREClarionwillmakegoodfaitheffortstoimplementcontrolswhichwillpreventtheaccountfromexecutingtransactionscontrarytotheclient’sprohibitionorlimitation.

Withrespecttoaccountsthatprohibitsoftdollarcredits,CBREClarionmayarrangefortheserestrictiveaccountstoremaininblockswhichtradeforsoftdollarcredits,butthefirmwillnotreceiveanysoftdollarcreditsforthecommissionsfromtherestrictiveaccounts.Inthesesituations,therestrictiveaccountswillobtainthesameexecutionpriceandsamecommissionrateasnon‐restrictiveaccounts,butCBREClarionwillnotreceiveanysoftdollarbenefitfromtherestrictiveaccounts’commissions.Thisprocessismonitored,inpart,throughareconciliationbetweenCBREClarionandthesoftdollarbrokertoconfirmthatrestrictiveaccountsdonotcontributetothefirm’ssoftdollarcredits.

Anothermethodtomanagerestrictiveaccountsistoexcludetheaccountentirelyfromtradinginanaggregatedblockalongwithnon‐restrictiveaccounts.However,likedirectedbrokeragearrangements,sucharestrictionwilloftenpreventCBREClarionfrombunchingtherestrictiveaccountsinlarger,non‐restrictiveclientblockorders.Therefore,restrictiveaccountswillbetradedeitherbeforeblockordersorafterblockorders,asdeterminedbytheTradersonaninformalrotationalbasis.Byexcludingrestrictiveaccountsfromblockorders,theseclientswillnotparticipateincertaintransactionswhichcanresultindisparities(eitherpositiveornegative)inclientcommissioncharges,executionprices,andthetimingoftransactionswhencomparedtoaccountswithoutrestrictivebrokerage.



Trade Errors

CBREClariontakestheutmostcareinmakingandimplementinginvestmentdecisionsonbehalfofclientaccounts.TotheextentthatCBREClarioncausesanerror,itwillcorrecttheerrorassoonaspracticable,andwhereappropriate,insuchamannerthattheclientincursnoloss.IfanerrorresultsincustodianoverdraftchargesofUS$50orless,CBREClariongenerallywillnotreimbursesuchamounts.WhenCBREClarionreimbursesaclientforlossesassociatedwithanerror,reimbursementsareprocessedascredits(reductions)toadvisoryfeeinvoices.Ifaclientprefersareimbursementtobemadeviawire,thencustodianfeesassociatedwithprocessingthewirewilloftenbedeductedbythecustodianfromthereimbursementamount.Asamatterofpolicy,theperformanceormarketimpactsassociatedwitherrorswillnotbeconsideredforreimbursement.CBREClarionwillnotusesoftdollarsorthefundsfromoneclientaccounttoreimburseanerrorinanotherclientaccount.

Errorsarereportedtothefirm’sErrorCommittee,whoscrutinizetheerrorwithaviewtowardprovidingguidanceandsupervisionand,ifappropriate,furtherimplementingprocedurestopreventorreduceerrors.

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Review of Accounts

PortfolioManagersoverseethefirm’sinvestmentmodelsonacontinuousbasis.Onaweeklybasis,PortfolioManagersreviewattributionreportstomonitoractiveallocationsattheregional,sector,andsecuritylevel.Onamonthlybasis,PortfolioManagersreviewreportscomparingindividualclientaccountswiththecorrespondingmodel.PortfolioManagersalsoreviewmodelsandclientaccountsinlightofemergingtrends,developments,andmarketvolatility.Additionally,PortfolioManagersreviewaccountsonanadhocbasis,dependingonthespecificneedsorsituationoftheclient.

Forexample,anaccountmayrequirerebalancingduetoclient‐directedcontributionsorredemptions.

CBREClarion’sComplianceteamreviewsaccountsonacontinuousbasistoconfirmadherencewithclientinvestmentguidelinesandrestrictions.Guidelinecomplianceistesteddailyonapre‐tradeandpost‐tradebasis.

Client Reporting

PortfolioManagersandClientServicepersonnelstayinclosecontactwithclientsdependingontheirneeds.PortfolioManagersand/orClientServicepersonnelcallclientstodiscussclientreports,provideexplanationofmarketactionsaffectingtheportfolio,andprovidegeneralfollow‐uponafrequencyscheduledtomeettheclients’needs.Dependingontherelationship,InvestmentTeampersonnelmayassistclientswithboardpresentationsoreducationseminarsforstaff,planparticipantsortheirconstituents.

Forseparateaccounts,CBREClariongenerallyprovidesamonthlyorquarterlyclientreport;thefrequencyandtimingofwhichisagreedbetweenCBREClarionandtheclient.

Thestandardclientreportingpackageincludes:



Marketcommentaryexplainingportfolioperformanceattributionandmarketinformation,

ClientPerformanceandPortfolioOverviewreportshowingportfolioandbenchmarkperformance,toppositions,andsummaryattribution,and

AccountingandReconciliationreports,includingvaluationsummary,portfolioappraisal,incomeandexpenses,purchasesandsales,andreconciliationtotheclient’scustodian.

Whiletheinformationintheclientreportingpackagerepresentstheofficialperformancereturns,thereportsregardingportfolioholdingsdonotrepresenttheofficialrecordsoftheclientaccount.Eachclientshouldreceivedirectandindependentreportingfromitscustodian.Thecustodianmaintainstheofficialbookofrecordfortheclient’sassets(securitiesandcash).TheclientshouldcarefullycomparetheCBREClarionreportstothereportsprovidedfromthecustodian.

Clientreportsaredeliveredelectronically,althoughclientsmayrequestphysicalcopies.CBREClarionaimstocommunicateclientreportswhichcontainconfidential,personallyidentifiable,orotherwisesensitiveinformationinasecuremannertomitigatecybersecurityrisks.Onemethodusedbythefirmistosendreportsthroughasecureweb‐basede‐mailsystemasanencryptedfiletransfer.Clientswillhaveaccesstothesecuredeliverysitetoaccessanddownloadfilessecurely.Ifaclientcannotaccessthesecuredeliverysiteduetointernalrestrictionsorpreferences,thenwewillattempttoreachanagreementwiththeclienttodeliverreportsthroughanalternativesecuremeans.However,ifaclientisunwillingorunabletoreceiveasecurecommunications,thensuchcommunicationswillbedeliveredelectronicallyinanunsecuremannerandclientswillassumethecybersecurityrisks.

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Client Referrals and Other Compensation

CBREClarionhasareferralarrangementwithCBREGlobalInvestors,LLCwhichprovidesforreferralsbyCBREGlobalInvestorstoCBREClarion.IfareferredclientengagesCBREClariontoprovideadvisoryservices,thenCBREGlobalInvestorswillreceiveaone‐timereferralfeebasedontheassetscomprisingthemandate.

CBREClarionalsohasaconsultingandreferralarrangementwithanindividualinAustraliaforsolicitationandbusinessdevelopmentactivities.Theindividualispaidanon‐goingretainerandasuccessfeeforreferredclients.

InconnectionwithitsroleasadvisertotheAffiliatedRICsorassub‐advisertocertainopen‐endmutualfunds,CBREClarioncompensatesthird‐partiesforthedistributionoffundsharesandshareholderservicingactivitiesdirectlyfromitsownresources.Thesepaymentsoftencomefromthefirm’sadvisoryfeerevenuegeneratedfromtherelevantfunds,butsuchpaymentsmayalsocomefromtherevenuegeneratedfromotherclients,particularlyifnofeeiscollectedfromthefundbeingservicedbythethird‐parties.Regardlessofthefundingsource,thesepaymentsarenotpursuanttotherelevantfund’sapproveddistributionplan.

CBREClarionreceivesasolicitationfeeinconnectionwithreferringinvestorsintotheglobalrealestatesecuritiesportfolioofthecollectivetrustsponsoredbyVoyaInvestmentsTrustCo.,astowhichitservesasthesub‐adviser.

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Custody

CBREClariondoesnotmaintaincustodyofclientfundsorsecurities.ClientsareexpectedtodirectlyengageanindependentcustodiantomaintainthefundsandsecuritieswhichCBREClarionwillmanage.CBREClarionwillhavetheabilitytodirecttradesintheclient’scustodyaccountbutCBREClarionwillnothavetheauthoritytowithdraworremoveassetsfromtheaccount.Thecustodianshouldbearegulatedfinancialinstitution(suchasabankorbroker)andtheclient’scustodyaccountshouldbeinthenameoftheclient,notCBREClarion.

Clientsshouldensurethatthecustodianwillprovideaccountreportsatleastquarterly.Thecustodianreportsshoulddetailallpositionsandtransactionsintheaccountdirectlytotheclient(oranappointedrepresentativeotherthanCBREClarion).WhileCBREClarionwillprovideperiodicreportstotheclient,CBREClarion’sreportsshouldnotbeviewedasthe“official”booksandrecordsfortheclient.ClientsshouldcarefullycomparestatementsprovidedbyCBREClariontothestatementsprovideddirectlybythecustodian.

Access to Client Assets

CBREClariondoesnotdirectlydebitinvestmentmanagementfeesfromaclient’scustodyaccount.Inverylimitedcircumstances(suchaswiththeAffiliatedPrivateFundsorIGR),CBREClarionpersonnelaredesignatedasan“authorizedsigners”todisbursefundsforthepaymentofauthorizedexpenses,includingtheinvestmentmanagementfee.Inthesesituations,theAffiliatedPrivateFundsandIGRundergoanauditbyanindependentpublicaccountingfirmonanannualbasis.Asofthedateofthisform,KPMG,LLPistheindependentpublicaccountingfirmfortheAffiliatedPrivateFunds.

CBREClarion,byvirtueofitsroleasthegeneralpartner(orinvestmentmanager)totheAffiliatedPrivateFunds,isconsideredtohave“constructivecustody”ofthefunds’assets.AllassetsoftheAffiliatedPrivateFundsaremaintainedwithaqualifiedcustodian.Asofthedateofthisform,NorthernTrustisthecustodianfortwoAffiliatedPrivateFunds,andMorganStanleyistheprimebrokerandcustodianfortheotherAffiliatedPrivateFund.TheAffiliatedPrivateFundsarealsoauditedonanannualbasisandtheaudits



aredistributedtoinvestorswithin120‐daysoftherespectivefund’sfiscalyear‐end.

InvestorsintheAffiliatedPrivateFundswillreceivecapitalaccountstatementsfromthefunds’administratorforthefundonamonthlybasis.Asofthedateofthisform,NorthernTrustistheadministratorfortwooftheAffiliatedPrivateFundsandtheotherAffiliatedPrivateFundisadministeredinternally.Investorswillnot,however,receiveaccountsstatementsfortheentirefundfromeithertheadministratororthecustodianforthefund.

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Investment Discretion

Inallinstances,CBREClarionexpectstoreceivefullinvestmentdiscretionaryauthorityoverclientaccounts.Fullinvestmentdiscretionaryauthorityincludestheabilitytodetermine:

thesecuritiestobeboughtorsold; theamountofsuchsecuritiestobeboughtorsold;and thebrokertobeusedtoexecutetransactions.

TheextentofCBREClarion’sdiscretionaryauthorityisdetailedinthetermsoftheinvestmentmanagementagreementbetweenCBREClarionandtheclient.

ClientsmayimposecertainrestrictionsandlimitationsonCBREClarion’sdiscretion.Inparticular,clientsmayimposeinvestmentguidelinesand/orrestrictionswhichwillbetakenintoaccountinmanagingtheaccount.InvestmentguidelinesorrestrictionsmaylimitCBREClarion’sabilitytofullyinvesttheaccountaccordingtotheinvestmentobjectivedesiredbytheclient.

Forexample,aclientmayimposeamaximumpositionlimitwhichislowerthanthemaximumpositioninthemodelcorrespondingtotheclient’sinvestmentobjective.Inthissituation,CBREClarionwouldhonortheclient’slimitationandthereforetheclient’saccountwoulddeviatefromthemodel.

Additionally,clientsmayimposedirectedbrokerageorrestrictedbrokerarrangements,whichwouldlimitCBREClarion’sdiscretionregardingbrokerage.TherisksassociatedwithdirectedbrokerageandrestrictedbrokerarrangementsaredescribedintheBrokeragePracticessectionofthisform,above.

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Voting Client Securities

Intheinvestmentmanagementagreement,aclientmayauthorizeCBREClariontovoteproxies.CBREClarionwillgenerallyvoteproxiesinaccordancewiththefirm’sproxyvotingguidelines.CBREClarionbelievesthatvotinginaccordancewithitsestablishedguidelinesisinthebestinterestsofitsclients;however,clientsarefreetomaintaintherighttovotetheirproxiesdirectly.

CBREClarionretainsISSasaproxyvotingagent.ISSdoesnotexercisevotingdiscretioninthiscapacity.CBREClarionprovidesISSwithourproxyvotingguidelines,andalistofportfoliosecurityholdings,identifyingaccountsthatholdeachsecurityandthenumberofshareseachaccountcontrols.Whenavoteisrequired,ISSwillnotifyCBREClarion.Inresponse,theappropriateCBREClarionInvestmentAnalystwillmakethevotingdecision,whichistransmittedbacktoISSforexecution.ISSisresponsibleforretainingcopiesofeachproxystatementandrecordsofthevotescast.

Incertainsituations,clientsmayhavesecuritieslendingarrangementswhicharenotinthescopeoftheadvisoryservicesprovidedbyCBREClarion.Whenclientsecuritiesare“outonloan,”CBREClarionmaynotbeabletovoteproxiesrelatedtothosesecuritiesasresultofthelendingarrangement.

CBREClarionhasanarrangementwithoneclientwheretheclienthasengagedathird‐partyconsultanttovoteproxiesinaccordancewiththeclient’sideals.Inthisisolatedsituation,CBREClarionhasagreedtoreimbursetheclientforcostsoftheconsultant’sservicesrelatedtotheaccountmanagedbyCBREClarion.Thisarrangementisunique,andCBREClarionexpectsclientsthatretainvotingauthoritytobeartheirowncosts.

ClientsmaycontacttheChiefComplianceOfficerat+16109952500toobtainacopyofthefirm’sProxyVotingPolicyortorequestinformationonthatclient'sproxies.Fortherequestingclient,awrittenresponsewilllistthefollowinginformationfortheclient’sproxies:(1)thenameoftheissuer,(2)theproposalvotedupon,and(3)howCBREClarionvotedtheclient'sproxy.CBREClarionwillnotdistributecopiesofitsvotingguidelinesandCBREClarionwillnotprovidedetailsaboutproxyvotescastinclientaccountstoanypartythatisnotaclient.

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Financial Information CBREClariondoesnothaveanyfinancialcommitmentwhichimpairsitsabilitytomeetcontractualandfiduciarycommitmentstoclients.CBREClarionhasnotbeenthesubjectofabankruptcyproceeding.

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Brochure Supplements

Thisistheendofthisdisclosurebrochure.PleaserefertothebrochuresupplementforinformationontheCBREClarionSeniorGlobalPortfolioManagersresponsibleforprovidingadvisoryservicesrelatedtoyouraccount.

Ifyouhaveanyquestionsregardingthisbrochureorthesupplement,pleasecontactusat+16109952500.

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CBRE Clarion Securities Rev. March 2013

Privacy Policy Notice

At CBRE Clarion Securities, we recognize and respect the privacy of your personal information.

Trust, privacy, and confidentiality are three principles that form the basis for our Privacy Policy.

As a financial service company, we are subject to laws protecting your privacy. We are required

to tell you how we collect, share, and protect your personal information. Please read this notice

carefully to understand what we do.

What information do we collect and how do we collect it?

If you invest with us on behalf of an organization, we may collect information about your

organization. We may also collect personal information about you in the course of doing

business. The types of information we collect may include:

account number(s),

amount and location of assets,

tax identification number, or

personal identification documents (such as driver’s license or passport) and/or

corporate formation documents (as appropriate).

We may collect personal information from you, your custodian, or other service providers during

your account set-up and customer due diligence process or in the course of providing services to

you.

How do we share your personal information?

We only disclose personal information about you as follows:

As required by law. At times, we may be required to provide information to government

entities or regulatory bodies or to others in response to requests for information or

subpoenas.

To service your account. In order to service your account and process transactions, we

may provide your personal information to firms that assist us in servicing your account

which have a need for such information, such as a broker or fund administrator.

In the normal course of our business. We may use your personal information to ensure

that we are able to offer our services to you. We may provide your personal information

to our attorneys, accountants, and auditors in the normal course of business and as

permitted by law.

When expressly permitted by you. We may release personal information to fiduciary

representatives (e.g. consultants) when we have written authority to do so.

CBRE Clarion Securities Privacy Policy Notice Rev. March 2013

We do not sell your personal information to anyone.

We will not share your personal information for joint marketing with other financial

companies, or with our affiliates or non-affiliates for the purpose of marketing to you.

If you invest with us on behalf of an organization, we may share information about your

organization with affiliates (such as other businesses within CBRE). The information about your

organization may include assets and contact persons.

In the event that we disclose your personal information to a non-affiliated third-party that

provides services to us we will:

Notify you to the extent that you have not been previously notified of such disclosures in a

Privacy Policy Notice, and

Enter into a contractual agreement with the third-party that prohibits the third-party from

disclosing or using your personal information other than to carry out the service for us.

An example of this type of arrangement with a non-affiliated third-party is where we engage a

third-party to store our client records, including electronic and e-mail records.

What types of sharing can you limit?

We do not share your personal information with any affiliates or non-affiliates for the purpose of

marketing to you. In the future, if we wish to share your personal information with non-affiliates

to market to you, we will notify you and provide an opportunity for you to “opt out” of this type of

sharing. While you can limit sharing for marketing purposes, you cannot limit our need to share

your personal information with an outside party for the purposes of servicing your account, in the

normal course of our business, or as required by law.

How do we protect your personal information?

We restrict access to your personal information to only those persons who need that information

in order to provide our services. We maintain physical, electronic, and procedural safeguards

that comply with federal standards to protect your personal information, such as computer

safeguards and secured files and buildings. Our service providers also maintain similar physical,

electronic, and procedural safeguards.

What happens when we no longer have a business relationship with you?

If you choose to close your account with us, we will continue to adhere to our privacy policy as

summarized in this notice.

If you have any questions regarding our Privacy Policy or this Notice,

please contact the Compliance Department at +1-610-995-2500.

CBRE Clarion Securities LLC Clarion... · Form ADV Part 2A Disclosure Brochure CBRE Clarion...

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