All requests for information regarding proxy votes, or policies and procedures, received by any Adviser employee, officer, or director should be forwarded to the CCO. Any unauthorized use of this site is strictly prohibited. An investment level within the fair value hierarchy is based on the lowest level input, individually or in the aggregate, that is significant to fair value measurement. As a result, the Adviser may cast different votes on behalf of different Clients. Generally, each Trustee and officer serves an indefinite term or until certain circumstances such as his resignation, death, or otherwise as specified in the Funds organizationaldocuments. The pension fund has slated $85 million of funds each for Carlyle Property Investors Fund, managed by Carlyle Group; Clarion Lion Industrial Trust, managed by Clarion Partners; and Principal Enhanced Property Fund, managed by Principal Global Investors. The Adviser will provide conspicuously displayed information in its Disclosure Document summarizing this proxy voting policy and procedures, including a statement that the Clients and Investors may request information regarding how the Adviser voted a Clients Proxies, and that the Clients and Investors may request a copy of these policies and procedures. The Funds investment adviser is Griffin Capital Advisor, LLC (the Adviser). Shareholders should note that return of capital will reduce the tax basis of their shares and potentially increase the taxable gain, if any, upon disposition of their shares. The Trustees noted that the Fund commenced operations on June 30, 2014, and continued to gather assets. Past performance is not a guarantee of future results. Griffin Capital Advisor, LLC (the Adviser), as a matter of policy and as a fiduciary to the Clients, has responsibility for voting proxies for securities consistent with the best interests of Clients. Sign up to receive emails from IREI. Fully integrated OEM electric trucks (chassis, cabin & batteries) Two institutional funds for the police and fire departments of the city of San Jose have backed the Clarion Lion Industrial Trust, a core real estate fund managed by Clarion Partners. SWFI is a minority-owned organization. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character but are not adjusted for temporary differences. Item 10. NEW YORK, NY The Trustees also noted that CenterSquares fee, combined with the Advisers fee, were similar to the management fees for funds with similar investment strategies. Item 5. Various inputs are used in determining the value of the Funds investments as of the reporting period end. After reviewing AHICs and the Funds performance, and other factors, the Board concluded that the investment performance of AHIC was satisfactory. Clarion Lion Industrial Trust General Information. The valuation techniques used by the Fund to measure fair value during the year ended September 30, 2016 maximized the use of observable inputs and minimized the use of unobservable inputs. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. The charts represent the diversification by sector and geography of the private fund holdings as of 10/3/16. The Distributor serves as principal underwriter of shares of the Fund. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. Such information does not constitute a recommendation to buy or sell specific securities or investment vehicles. The difference between book basis and tax basis net unrealized appreciation is primarily attributable to the investments in partnerships, wash sales and certain other investments. The Trustees determined that the management fee and net expense ratio were higher than some, but not all, of the comparable funds and the peer group averages. The investment objective of the Fund is to generate a return comprised of both current income and capital appreciation with moderate volatility and low correlation to the broader markets. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Fair valuation procedures may be used to value a substantial portion of the assets of the Fund. The Funds distribution policy is to make quarterly distributions to shareholders. Form D contains basic information about the offering and the company. After reviewing CenterSquares and the Funds performance, and other factors, the Board concluded that the investment performance of CenterSquare was satisfactory. After further review and discussion, the Board determined that CenterSquares practices regarding brokerage and portfolio transactions were satisfactory. A portion of these securities are held as collateral for the outstanding Line(s) of Credit. You have selected a link that will take you away from the Clarion Partners website. The schedule of investments is included as part of the Reports to Stockholders filed under Item 1 of this report. Trustees Consideration and Approval of Continuation of Sub-Advisory Agreement with AHIC. It also contained information on Fund expenses, including comparative expense ratio information for other investment companies with strategies similar to the Fund. Lion Industrial Trust; Use of this site is subject to, and your continued use constitutes your express agreement to be bound by, . For the year ended September 30, 2016, the Fund did not have unobservable inputs (Level 3) used in determining fair value. Measurement is time-weighted. RSM McGladrey was paid $49,050 in connection with auditing services. Application Filed: 2011-10-07. The Trustees noted the Funds success in gathering assets and that its assets under management as of May 31, 2016 exceeded all but one Fund in its peer group. In considering the nature, extent, and quality of the services provided by the Adviser, the Trustees considered the responsibilities of the Adviser under the Investment Advisory Agreement and reviewed the services provided to the Fund including, without limitation, the Advisers procedures for formulating investment recommendations and assuring compliance with the Funds investment objectives and limitations, coordination of services for the Fund among the Funds service providers, and efforts to promote the Fund, grow the Funds assets, and assist in the distribution of Fund shares. If the Funds NAV has increased, the Fund will have economically earned more than it has distributed, regardless of whether such distributions are reported as being from net investment income, net realized gains on investments or return of capital. Liquidity will be provided to shareholders only through the Funds quarterly repurchases. Private real estate fund dry powder is still above long-term averages as investors seek high quality, income-producing assets. For over 17 years, our experienced team has been actively acquiring and developing light industrial assets in key markets, particularly in those structured as sale-leaseback transactions. Constructed between 2001 and 2005, the portfolio [] Company profile page for Lion Industrial Trust including stock price, company news, press releases, executives, board members, and contact information We are not responsible for the content, views, or privacy policies of the third party website. The largest outstanding borrowing during the year ended September 30, 2016 relating to Credit Suisse was $149,500,000. SEC form, multiple filers or classes of filers, and much more.***. Management has determined that there were no other subsequent events to report through the issuance of these financial statements. The notice included securities offered of Equity,Pooled Investment Fund Interests. Up to 588 kWh. 230 Park Avenue. The Portfolio Manager may take into account information provided by the Underlying Funds personnel regarding the nature of the proxy. The Trustees noted the Funds strong performance over the since inception, trailing one year, and year to date through May 31, 2016 periods. In considering the extent to which economies of scale would be realized as the Fund grows and whether the advisory fee levels reflect these economies of scale for benefit of the Funds investors, the Trustees considered that the Funds fee arrangements with AHIC and noted that the sub-advisory fee contained break points, which caused the Adviser to pay lower fees to AHIC based on lower asset levels. Prior to joining Scannell, Kris was a senior vice president at Clarion Partners, where he facilitated the growth of Lion Industrial Trust, a $30 billion industrial-focused, private REIT, through acquisition, disposition and development transactions throughout the United States. The Funds investment adviser has contractually agreed to waive its fees and to pay or absorb the ordinary annual operating expenses of the Fund (including offering expenses, but excluding taxes, interest, brokerage commissions, acquired fund fees and expenses and extraordinary expenses), to the extent that they exceed 1.91%, 2.66% and 1.66% per annum of the Funds average daily net assets attributable to Class A, Class C and Class I shares, respectively. The Barclays Capital U.S. Investment advisers registered with the SEC, and which exercise voting authority with respect to client securities, are required by Rule 206(4)-6 of the Advisers Act to (a) adopt and implement written policies and procedures that are reasonably designed to ensure that client securities are voted in the best interests of clients, which must include how an adviser addresses material conflicts that may arise between an advisers interests and those of its clients; (b) disclose to clients how they may obtain information from the adviser with respect to the voting of proxies for their securities; (c) describe to clients a summary of its proxy voting policies and procedures and, upon request, furnish a copy to its clients; and (d) maintain certain records relating to the advisers proxy voting activities when the adviser does have proxy voting authority. Spencer Propper serves as Vice President of Griffin Capital Advisor, LLC and Associate Portfolio Manager of the Fund since it commenced operations in 2014. The Trustees noted that the Fund commenced operations on June 30, 2014, and continued to gather assets. The returns shown above do not reflect the deduction of taxes a shareholder would pay on Fund distributions or redemption of Fund shares. NCREIF will calculate the overall aggregated Index return. The Fund's Class A shares commenced operations on June 30, 2014. The Distributor acts as the Funds principal underwriter in a continuous public offering of the Funds shares. This material does not constitute investment advice, nor does it constitute an offer in any product or strategy offered by Clarion Partners LLC or Clarion Partners Europe, and should not be viewed as a current or past recommendation to buy or sell any securities. Griffin Capital Securities, Inc. does not accept any liability for losses either direct or consequential caused by the use of this information. The Fund is a closed-end interval fund that provides liquidity to shareholders through a quarterly repurchase offer. If you want to remain at this site, select the DECLINE button. The business and affairs of the Fund are managed under the direction of the Trustees. Following further consideration and discussion, the Board indicated that AHICs standards and practices relating to the identification and mitigation of potential conflicts of interests were satisfactory. 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. All text and design is copyright 2020 WhaleWisdom.com. PURCHASES AND SALES OF INVESTMENT SECURITIES. Interest rate shocks increased volatility for yield sensitive securities, including publicly traded real estate, higher than that of the S&P 500 throughout the year (10/1/15 9/30/16 MSCI U.S. REIT Index (RMZ) standard deviation: 19.93% vs S&P 500 standard deviation of 17.36%). Our procedures included confirmation of securities owned as of September 30, 2016 by correspondence with the custodian, brokers, and other appropriate parties or by other appropriate procedures when necessary. Youll receive updates on upcoming events, special When price quotations for certain securities are not readily available, or if the available quotations are not believed to be reflective of market value by the Adviser, those securities will be valued at fair value as determined in good faith by the Valuation Committee using procedures adopted by and under the supervision of the Funds Board of Trustees (the Trustees). The continued growth has allowed the portfolio to further diversify by property type, geography and fund manager. The CCO will designate another Portfolio Manager the responsibility to form a proxy voting recommendation and serve as the original Portfolio Manager would have done in the proxy voting process. No services described in paragraphs (b) through (d) of Item 4 of this report were approved by the registrants audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. All material subject to strictly enforced copyright laws. It should not be assumed that any investment will be profitable or will equal the performance of the fund(s) or any securities or any sectors mentioned herein. Clarion Lion Industrial Trust is a real estate core fund managed by Clarion Partners. The NFI-ODCE, short for National Council of Real Estate Investment Fiduciaries (NCREIF) Fund Index - Open End Diversified Core Equity, is the first of the NCREIF Fund Database products and is an index of investment returns reporting on both a historical and current basis the results of 24 open-end commingled funds pursuing a core investment strategy, some of which have performance histories dating back to the 1970s. 4. Based on Market value. Dry powder refers to cash reserves for purchasing assets or making acquisitions. We succeed whenthey succeed. Redemption price per share may be reduced for any applicable contingent deferred sales charge. The Fund was organized as a statutory trust on November 5, 2013 and under the laws of the State of Delaware. On behalf of the entire Griffin team, we thank you for your continued support. The unused amount under the Credit Suisse arrangement bears interest at 90 basis points. Sovereign Wealth Fund Institute and SWFI are registered trademarks of the Sovereign Wealth Fund Institute. Accumulated Net Realized Gain on Investments. The Fund engages in a continuous offering of shares and operates as an interval fund that offers quarterly repurchases of shares at net asset value. This includes acquisition and asset management roles on over 10M SF of industrial real estate for AIG, and right-sizing under performing retail centers for Clarion Partners. Clients can select from a broad range of debt and equity investment options to build their real estate portfolios, including diversified core portfolios, sector-specific accounts, core, core-plus and value-add products as . Total returns would have been lower had certain expenses not been waived during the period. In considering the Advisers practices regarding conflicts of interest, the Trustees evaluated the potential for conflicts of interest and considered such matters as the experience and ability of the advisory personnel assigned to the Fund; the basis of decisions to buy or sell securities for the Fund and the Advisers other accounts; the method for bunching of portfolio securities transactions; and the substance and administration of the Advisers code of ethics. PitchBook helps you see a funds investments based on target industry, year and deal typeso you can quickly understand its strategy at a glance.