UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-8059 |
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Cohen & Steers Global Realty Shares, Inc. |
(Exact name of registrant as specified in charter) |
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280 Park Avenue, New York, NY | | 10017 |
(Address of principal executive offices) | | (Zip code) |
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Adam M. Derechin Cohen & Steers Capital Management, Inc. 280 Park Avenue New York, New York 10017 |
(Name and address of agent for service) |
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Registrant’s telephone number, including area code: | (212) 832-3232 | |
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Date of fiscal year end: | December 31 | |
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Date of reporting period: | December 31, 2011 | |
| | | | | | | | |
Item 1. Reports to Stockholders.
COHEN & STEERS GLOBAL REALTY SHARES, INC.
To Our Shareholders:
We would like to share with you our report for the year ended December 31, 2011. The net asset values (NAV) per share at that date were $36.58, $36.53, $36.39 and $36.73 for Class A, Class B, Class C and Class I shares, respectively
The total returns, including income and change in NAV, for the Fund and its comparative benchmarks were:
| | Six Months Ended December 31, 2011 | | Year Ended December 31, 2011 | |
Cohen & Steers Global Realty Shares—Class A | | | –13.62 | % | | | –9.42 | % | |
Cohen & Steers Global Realty Shares—Class B | | | –13.93 | % | | | –10.02 | % | |
Cohen & Steers Global Realty Shares—Class C | | | –13.91 | % | | | –10.02 | % | |
Cohen & Steers Global Realty Shares—Class I | | | –13.47 | % | | | –9.11 | % | |
FTSE EPRA/NAREIT Developed Real Estate Index—neta | | | –11.49 | % | | | –6.46 | % | |
S&P 500 Indexa | | | –3.69 | % | | | 2.11 | % | |
The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return and the principal value of an investment will fluctuate and shares, if redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Current total returns of the Fund can be obtained by visiting our Web site at cohenandsteers.com. Performance quoted does not reflect the deduction of the maximum 4.5% initial sales charge on Class A shares or the 5% and 1% maximum contingent deferred sales charge on Class B and Class C shares, respectively. If such charges were included, returns would have been lower.
The Fund implements fair value pricing when the daily change in a specific U.S. market index exceeds a predetermined percentage. Fair value pricing adjusts the valuation of certain non-U.S. holdings to account for such index change following the close of foreign markets. This standard practice has been adopted by a majority of the fund industry to deter investors from arbitraging funds with a large percentage of non-U.S. holdings. In the event fair value pricing is implemented on the first and/or last day of a performance measurement period, the Fund's return may diverge from the relative performance of its benchmark index, which does not use fair value pricing. An investor cannot invest directly in an index.
Please note that distributions paid by the Fund to shareholders are subject to recharacterization for tax purposes and are taxable up to the amount of the Fund's investment company taxable income and net realized gains. Distributions in excess of the Fund's investment company taxable income and realized gains are a return of capital distributed from the Fund's assets.
a The FTSE EPRA/NAREIT Developed Real Estate Index is an unmanaged portfolio of approximately 297 constituents from 22 countries and is net of dividend withholding taxes. The S&P 500 Index is an unmanaged index of common stocks that is frequently used as a general measure of stock market performance.
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
Investment Review
In a volatile year for equities, global real estate securities had a negative return, reflecting a meaningful slowdown in global economic growth. Performance diverged sharply across regions, with losses in Europe and Asia Pacific more than offsetting gains in North America.
The year started with positive momentum fueled by strong corporate earnings. Fiscal strains in Europe and the devastating earthquake in Japan produced periods of high volatility, but markets remained generally resilient. In the third quarter, however, new data in the U.S. suggested the recovery was on a weaker trajectory than previously expected, causing risk premiums to rise rapidly for all types of assets. Investor confidence was further eroded by the growing risk of a Greek default, sparking fears of heavy bank losses and fiscal contagion. Finally, the debate over raising the U.S. debt ceiling was followed quickly by a downgrade of the U.S. credit rating by Standard & Poor's, precipitating a rapid decline in global equities in August. By October, stocks began to recover amid improving U.S. economic data and signs of progress in Europe. Markets also responded to a shift by central banks toward looser monetary policy, as slowing global growth helped ease inflation pressures.
Despite economic headwinds and heightened volatility, operating fundamentals for commercial real estate continued to improve. By our estimates, cash flows for listed property companies globally grew an average of 4.6% during the year, on par with the historical average.
North America outperformed by a wide margin
U.S. REITs overcame sluggish economic growth to advance 8.3%, as measured by the FTSE NAREIT Equity REIT Index. Larger and better capitalized REITs demonstrated ample access to capital via equity and bond offerings, and they were able to refinance lines of credit on favorable terms. Self storage REITs (+35.2%b total return) led all property sectors, benefiting from accelerating cash flow growth coupled with market share gains from smaller private operators. Regional malls (+22.0%) also outperformed. In a trend seen throughout the U.S REIT market, mall owners with better assets and stronger balance sheets outperformed their peers. Cyclical property sectors such as industrial (–5.2%) and hotels (–14.3%) underperformed, although apartment landlords (+15.1%) gained on improving employment trends among college-educated workers.
Canada (+15.1%c) had the best return among developed markets, as investors were attracted to the economy's relative stability. The western region was particularly strong, as the boom in natural resources spurred demand for all property types.
Europe had sharp declines amid worsening fiscal crisis
The U.K. (–7.9%) benefited from not being in the eurozone, but still struggled as economic growth deteriorated rapidly in response to successive rounds of austerity measures. Returns were better for retail and office landlords focused on the London metro market, where occupancies and rents were relatively stable and cash flows continued to grow, primarily through debt cost reductions and other
b Sector returns as measured by the FTSE NAREIT Equity REIT Index.
c Country returns are in local currencies as measured by the FTSE EPRA/NAREIT Developed Real Estate Index.
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
expense savings. Companies with speculative development pipelines generally underperformed due to their lack of tenant demand and dependence on bank financing, as banks pulled back their lending operations amid heavy pressure to raise capital.
In France (–8.4%), most property companies saw double-digit declines amid fears of French bank exposure to troubled sovereign debt. However, the country's relative return was lifted by Unibail-Rodamco, which benefited from a strong balance sheet, ready access to low-cost debt and a portfolio consisting largely of high-quality retail assets in France and northern Europe, where demand has proven more stable. Market rates for office and retail space declined, but landlords had positive growth in net operating income due to rent indexation, which allowed them to raise in-place rents based on inflation data.
Although Germany (–18.2%) had a relatively strong economy, companies suffered from a sharp deceleration in growth expectations. Similarly, Scandinavia was among the fastest regions to recover from the 2008 financial crisis, but slowed rapidly in 2011, leading to substantial declines in its property stocks. The Netherlands (–24.5%) underperformed given its companies' secondary assets and exposure to southern Europe, while Belgium (–3.4%), which is more focused on local markets, did relatively better. Switzerland (+5.5%) was the only European property market with a gain, as investors favored its defensive characteristics, conservative fiscal policy, stable currency and strong property fundamentals.
Restrictive policies and challenged residential markets weighed on Asia Pacific
Hong Kong (–25.3%) had steep losses as high inflation and policy tightening generated strong headwinds to growth. Policies targeting the luxury housing market proved effective in reversing the rapid rise in prices, hurting residential developers as unit prices and sales volumes declined. In November, a surprise reduction in China's reserve requirement ratio provided hope for improving demand on the mainland, though there was no signal that property-focused restrictions would be eased in the near term. Landlords had generally smaller declines than developers amid strong tenant demand and minimal new supply.
Singapore (–26.8%) had a similar story, with developers suffering significant losses due to increasingly severe administrative restrictions on home purchases. Domestic demand remained strong, but the country's reliance on exports made it particularly vulnerable to the global economic slowdown. Singapore was also one of the rare markets to see new office supply scheduled for development, which diminished the potential for rent growth through 2013.
In Japan (–26.1%), the economy was just beginning to recover when the earthquake and nuclear crisis in March pulled it back into recession. A strong currency and slowing exports added to the economic strain. As part of the post-quake stimulus efforts, the Bank of Japan stepped up its program of purchasing J-REITs, while developers saw a surprising recovery in demand for condos. However, neither was enough to offset the very challenging macro conditions seen throughout the year, and Japanese property companies performed poorly.
Australia (–2.0%) significantly outperformed the region following a poor showing in 2010. With floods in Queensland and declining demand for natural resources slowing the economy and helping to keep inflation in check, the Reserve Bank of Australia began cutting overnight lending rates to support growth. Homebuilders performed well in response (after having suffered earlier in the year), as did high-quality office and retail landlords.
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
Global Real Estate Securities Total Returns by Country
January 1, 2011—December 31, 2011
Country returns are in local currencies as measured by the FTSE EPRA/NAREIT Developed Real Estate Index. U.S. returns as measured by the FTSE NAREIT Equity REIT Index.
Source: EPRA, NAREIT.
Fund performance
The Fund had a negative return for the year and underperformed its benchmark. Much of the underperformance came in August, when our U.S. allocation reflected expectations for modest but steady U.S. economic growth, with overweights in cyclical sectors such as hotels and industrial REITs. As equity prices adjusted to a much slower growth outlook, our positioning in the U.S. weighed meaningfully on relative performance. Other detractors included stock selection in the U.K. and Hong Kong. We were also underweight Switzerland due to valuation concerns, but investors showed a willingness to pay a high premium for safety, and our position hurt relative performance.
Stock selection in Japan also detracted from relative performance, but this was more than offset by the benefit of our underweight in the country. Other positive factors included stock selection in Germany and France, as well as our underweight in the Netherlands.
Our out-of-index allocations to emerging markets had mixed results. Our position in the Philippines substantially outperformed, benefiting from strong growth in retail spending. Our allocation to Brazil had a positive return in local currency terms, but a decline in the Brazilian real resulted in a negative contribution to the Fund's net return.
Investment Outlook
Our macro outlook has turned more positive given the global shift toward monetary easing as well as U.S. economic data confirming steadily improving growth. However, we expect the fiscal crisis plaguing Europe to remain an overhang, as the region is likely heading into recession, making a long-term resolution increasingly difficult. Despite these challenges, we believe fundamentals for global real
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
estate securities will continue to improve broadly, with the lack of new supply coupling with growing demand and effective expense reduction to generate meaningful cash flow growth.
We remain materially underweight Europe and Japan, and overweight Asia Pacific (ex-Japan). We also have selective allocations to well-established companies in emerging markets whose business models are positioned to benefit from secular growth in consumer spending among emerging middle classes. We are meaningfully overweight high-quality retail and offices in major city centers globally, where tenant demand has been more resilient and supply far more constrained. Finally, we have allocations in specific property sectors and geographies where stronger cyclical recovery is emerging as a driver of outsized cash flow growth. Examples in the U.S. are data centers, self storage and university campus housing.
U.S. property fundamentals remain attractive
We are somewhat more cautious toward the U.S. following its strong performance in 2011, but we are encouraged by an increasingly positive economic recovery and are adjusting our growth estimates accordingly. We continue to favor high-quality retail and industrial owners, as well as the apartment sector, which has been one of the few sectors with demand strong enough to warrant new supply. We are also overweight premium outlets, self storage and life sciences. We remain underweight suburban offices, secondary retail and health care properties.
Staying underweight Europe
Within the framework of our generally negative stance toward Europe, we see pockets of opportunity, including London's prime office and retail markets, as well as Scandinavia and Germany, which should benefit from their relatively healthy economies. We have a constructive view of France's prime retail markets, but we expect growth to be modest and largely derived from rent indexation and debt cost reduction. We have limited or no exposure to second-tier office and retail markets or companies based in peripheral regions, such as Italy, Spain and Greece.
Asia Pacific should benefit from easing trend
We see China's recent move to lower its reserve requirement ratio as a key inflection point in the region, marking the beginning of a slow shift toward policy easing that should help stabilize demand. We do not, however, anticipate aggressive stimulatory actions or easing of residential home buying restrictions in the near term. Within our Hong Kong allocation, we have taken a more favorable view of developers with operations in China given their excessively low valuations and potential upside as inflation moderates. Australia also appears attractive (especially prime office and retail properties), as lower lending costs and falling inflation should lead directly to lower cap rates and higher property values. However, we are cognizant of Australia's exposure to deceleration in China and the impact this may have on export growth.
We remain underweight in Japan, as a deflationary environment is likely to continue, putting pressure on real estate values. However, expectations of improving condo sales due to incentives and low interest rates may benefit developers on a relative basis. We are also cautious toward Singapore's historically cyclical office and hotel operators, as slowing exports are likely to remain a headwind to the country's economy, while new supply of office space will likely limit rent growth over the medium term.
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
Sincerely,
| | | |
|
MARTIN COHEN | | ROBERT H. STEERS | |
|
Co-chairman | | Co-chairman | |
|
| | | |
|
JOSEPH M. HARVEY | | SCOTT CROWE | |
|
Portfolio Manager | | Portfolio Manager | |
|
| | | |
|
GERIOS J. M. ROVERS | | LUKE SULLIVAN | |
|
Portfolio Manager | | Portfolio Manager | |
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| | | |
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CHARLES J. MCKINLEY | | ROGIER QUIRIJNS | |
|
Portfolio Manager | | Portfolio Manager | |
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The views and opinions in the preceding commentary are subject to change. There is no guarantee that any market forecast set forth in the commentary will be realized. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice and is not intended to predict or depict performance of any investment.
Visit Cohen & Steers online at cohenandsteers.com
For more information about any of our funds, visit cohenandsteers.com, where you will find daily net asset values, fund fact sheets and portfolio highlights. You can also access newsletters, education tools and market updates covering the global real estate, listed infrastructure, utilities, large cap value and preferred securities sectors.
In addition, our Web site contains comprehensive information about our firm, including our most recent press releases, profiles of our senior investment professionals and an overview of our investment approach.
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
Performance Review (Unaudited)
Class A—Growth of a $10,000 Investment
Class B—Growth of a $10,000 Investment
Class C—Growth of a $10,000 Investment
Class I—Growth of a $100,000 Investment
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
Performance Review (Unaudited)—(Continued)
Average Annual Total Returns—For Periods Ended December 31, 2011
| | Class A Shares | | Class B Shares | | Class C Shares | | Class I Shares | |
1 Year (with sales charge) | | | –13.50 | %c | | | –14.52 | %d | | | –10.92 | %f | | | — | | |
1 Year (without sales charge) | | | –9.42 | % | | | –10.02 | % | | | –10.02 | % | | | –9.11 | % | |
5 Years (with sales charge) | | | –8.35 | %c | | | –8.47 | %e | | | –8.10 | % | | | — | | |
5 Years (without sales charge) | | | –7.50 | % | | | –8.10 | % | | | –8.10 | % | | | –7.19 | % | |
10 Years (without sales charge) | | | — | | | | — | | | | — | | | | 8.83 | % | |
Since Inceptionf (with sales charge) | | | 1.80 | %c | | | 1.77 | % | | | 1.78 | % | | | — | | |
Since Inceptionf (without sales charge) | | | 2.45 | % | | | 1.77 | % | | | 1.78 | % | | | 7.87 | % | |
The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return and principal value of an investment will fluctuate and shares, if redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance information current to the most recent month-end can be obtained by visiting our Web site at cohenandsteers.com. The performance graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. During certain periods presented above, the advisor waived fees and/or reimbursed expenses. Without this arrangement, performance would have been lower.
The expense ratios for each class of shares as disclosed in the May 1, 2011 prospectuses were as follows: Class A—1.56%; Class B and Class C—2.21% and Class I—1.21%.
a The comparative indexes are not adjusted to reflect expenses or other fees that the SEC requires to be reflected in the Fund's performance. The Fund's performance assumes the reinvestment of all dividends and distributions. For more information, including charges and expenses, please read the prospectus carefully before you invest.
b The linked benchmark is represented by the performance of the FTSE NAREIT Equity REIT Index from September 30, 2004 through September 30, 2007 for Class A, Class B and Class C shares and from December 31, 2001 through September 30, 2007 for Class I shares and the FTSE EPRA/NAREIT Developed Real Estate Index from October 1, 2007 through December 31, 2011. The FTSE NAREIT Equity REIT Index is an unmanaged, market-capitalization-weighted index of all publicly traded REITs that invest predominantly in the equity ownership of real estate. The index is designed to reflect the performance of all publicly traded equity REITs as a whole.
c Reflects a 4.50% front-end sales charge.
d Reflects a contingent deferred sales charge of 5%.
e Reflects a contingent deferred sales charge of 2%.
f Reflects a contingent deferred sales charge of 1%.
g Inception dates: September 30, 2004 for Class A, B, and C and May 8, 1997 for Class I.
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
Expense Example
(Unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments; and (2) ongoing costs including management fees; distribution and/or service (12b-1) fees; and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period July 1, 2011—December 31, 2011.
Actual Expenses
The first line of the following table provides information about actual account values and expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the following table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing cost of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads). Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
Expense Example (Unaudited)—(Continued)
| | Beginning Account Value July 1, 2011 | | Ending Account Value December 31, 2011 | | Expenses Paid During Perioda July 1, 2011– December 31, 2011 | |
Class A | |
Actual (–13.62% return) | | $ | 1,000.00 | | | $ | 863.80 | | | $ | 7.56 | | |
Hypothetical (5% annual return before expenses) | | $ | 1,000.00 | | | $ | 1,017.09 | | | $ | 8.19 | | |
Class B | |
Actual (–13.93% return) | | $ | 1,000.00 | | | $ | 860.70 | | | $ | 10.60 | | |
Hypothetical (5% annual return before expenses) | | $ | 1,000.00 | | | $ | 1,013.81 | | | $ | 11.47 | | |
Class C | |
Actual (–13.91% return) | | $ | 1,000.00 | | | $ | 860.90 | | | $ | 10.60 | | |
Hypothetical (5% annual return before expenses) | | $ | 1,000.00 | | | $ | 1,013.81 | | | $ | 11.47 | | |
Class I | |
Actual (–13.47% return) | | $ | 1,000.00 | | | $ | 865.30 | | | $ | 5.92 | | |
Hypothetical (5% annual return before expenses) | | $ | 1,000.00 | | | $ | 1,018.85 | | | $ | 6.41 | | |
a Expenses are equal to the Fund's Class A, Class B, Class C and Class I annualized expense ratio of 1.61%, 2.26%, 2.26% and 1.26%, respectively, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
DECEMBER 31, 2011
Top Ten Holdings
(Unaudited)
Security | | Value | | % of Net Assets | |
Simon Property Group | | $ | 21,150,931 | | | | 5.7 | % | |
Sun Hung Kai Properties Ltd. | | | 16,155,793 | | | | 4.3 | | |
Unibail-Rodamco | | | 11,952,999 | | | | 3.2 | | |
Equity Residential | | | 11,134,024 | | | | 3.0 | | |
HCP | | | 10,778,014 | | | | 2.9 | | |
Westfield Group | | | 8,847,083 | | | | 2.4 | | |
Hongkong Land Holdings Ltd. (USD) | | | 7,826,052 | | | | 2.1 | | |
China Overseas Land & Investment Ltd. | | | 7,633,843 | | | | 2.1 | | |
Mitsui Fudosan Co., Ltd. | | | 7,596,379 | | | | 2.0 | | |
Westfield Retail Trust | | | 7,040,360 | | | | 1.9 | | |
Country Breakdown
(Based on Net Assets)
(Unaudited)
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS
December 31, 2011
| | | | Number of Shares | | Value | |
COMMON STOCK | | 97.6% | | | | | | | | | |
AUSTRALIA | | 10.0% | |
DIVERSIFIED | | 4.9% | |
BGP Holdings PLC (EUR)a,b,c | | | | | 4,151,319 | | | $ | 0 | | |
Dexus Property Group | | | | | 3,968,821 | | | | 3,369,228 | | |
GPT Group | | | | | 1,976,252 | | | | 6,205,425 | | |
Mirvac Group | | | | | 3,040,875 | | | | 3,670,045 | | |
Stockland | | | | | 1,585,487 | | | | 5,173,021 | | |
| | | | | | | 18,417,719 | | |
OFFICE | | 0.8% | |
Commonwealth Property Office Fund | | | | | 3,082,785 | | | | 3,011,185 | | |
RETAIL | | 4.3% | |
Westfield Group | | | | | 1,107,537 | | | | 8,847,083 | | |
Westfield Retail Trust | | | | | 2,764,424 | | | | 7,040,360 | | |
| | | | | | | 15,887,443 | | |
TOTAL AUSTRALIA | | | | | | | 37,316,347 | | |
BRAZIL | | 2.0% | |
OFFICE | | 1.0% | |
BR Properties SA | | | | | 366,213 | | | | 3,632,189 | | |
RETAIL | | 1.0% | |
Aliansce Shopping Centers SA | | | | | 121,741 | | | | 930,068 | | |
BR Malls Participacoes SA | | | | | 279,066 | | | | 2,710,991 | | |
| | | | | | | 3,641,059 | | |
TOTAL BRAZIL | | | | | | | 7,273,248 | | |
CANADA | | 4.7% | |
DIVERSIFIED | | 0.5% | |
Dundee Real Estate Investment Trust | | | | | 34,226 | | | | 1,097,584 | | |
Dundee Real Estate Investment Trust, 144Ad | | | | | 27,543 | | | | 883,268 | | |
| | | | | | | 1,980,852 | | |
OFFICE | | 1.4% | |
Brookfield Office Properties (USD) | | | | | 333,486 | | | | 5,215,721 | | |
RESIDENTIAL | | 0.5% | |
Boardwalk REIT | | | | | 35,546 | | | | 1,759,941 | | |
See accompanying notes to financial statements.
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2011
| | | | Number of Shares | | Value | |
RETAIL | | 2.3% | | | | | | | | | |
Primaris Retail REIT | | | | | 192,647 | | | $ | 3,897,379 | | |
RioCan REIT | | | | | 175,758 | | | | 4,559,788 | | |
| | | | | | | 8,457,167 | | |
TOTAL CANADA | | | | | | | 17,413,681 | | |
FRANCE | | 3.2% | |
RETAIL | |
Unibail-Rodamco | | | | | 66,490 | | | | 11,952,999 | | |
GERMANY | | 1.8% | |
OFFICE | | 0.5% | |
Alstria Office REIT AG | | | | | 158,777 | | | | 1,889,752 | | |
RESIDENTIAL | | 1.3% | |
Deutsche Wohnen AG | | | | | 364,889 | | | | 4,847,726 | | |
TOTAL GERMANY | | | | | | | 6,737,478 | | |
HONG KONG | | 14.5% | |
DIVERSIFIED | | 8.1% | |
China Resources Land Ltd. | | | | | 1,594,000 | | | | 2,553,158 | | |
Hang Lung Properties Ltd. | | | | | 255,000 | | | | 725,607 | | |
Henderson Land Development Co., Ltd. | | | | | 361,000 | | | | 1,794,170 | | |
Sino Land Co., Ltd. | | | | | 3,751,000 | | | | 5,341,599 | | |
Soho China Ltd. | | | | | 1,343,499 | | | | 896,058 | | |
Sun Hung Kai Properties Ltd. | | | | | 1,288,912 | | | | 16,155,793 | | |
Wharf Holdings Ltd. | | | | | 610,624 | | | | 2,767,487 | | |
| | | | | | | 30,233,872 | | |
OFFICE | | 2.1% | |
Hongkong Land Holdings Ltd. (USD) | | | | | 1,723,800 | | | | 7,826,052 | | |
RESIDENTIAL | | 2.8% | |
China Overseas Land & Investment Ltd. | | | | | 4,567,720 | | | | 7,633,843 | | |
Country Garden Holdings Co. | | | | | 6,857,998 | | | | 2,569,564 | | |
| | | | | | | 10,203,407 | | |
RETAIL | | 1.5% | |
Link REIT | | | | | 1,530,500 | | | | 5,635,967 | | |
TOTAL HONG KONG | | | | | | | 53,899,298 | | |
INDIA | | 0.2% | |
RETAIL | |
Phoenix Mills Ltd. | | | | | 261,044 | | | | 811,077 | | |
See accompanying notes to financial statements.
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COHEN & STEERS GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2011
| | | | Number of Shares | | Value | |
JAPAN | | 5.9% | | | | | | | | | |
DIVERSIFIED | | 4.5% | |
Mitsubishi Estate Co., Ltd. | | | | | 427,000 | | | $ | 6,379,758 | | |
Mitsui Fudosan Co., Ltd. | | | | | 521,117 | | | | 7,596,379 | | |
Nomura Real Estate Holdings | | | | | 179,300 | | | | 2,669,583 | | |
| | | | | | | 16,645,720 | | |
OFFICE | | 0.9% | |
Nippon Building Fund | | | | | 419 | | | | 3,429,518 | | |
RESIDENTIAL | | 0.5% | |
Advance Residence Investment | | | | | 1,042 | | | | 2,010,355 | | |
TOTAL JAPAN | | | | | | | 22,085,593 | | |
NETHERLANDS | | 0.5% | |
RETAIL | |
Eurocommercial Properties NV | | | | | 57,002 | | | | 1,809,697 | | |
PHILIPPINES | | 1.0% | |
RETAIL | |
SM Prime Holdings | | | | | 12,437,176 | | | | 3,771,849 | | |
SINGAPORE | | 3.1% | |
INDUSTRIAL | | 1.4% | |
Ascendas REIT | | | | | 765,000 | | | | 1,079,334 | | |
Global Logistic Properties Ltd.c | | | | | 3,063,000 | | | | 4,144,455 | | |
| | | | | | | 5,223,789 | | |
OFFICE | | 0.8% | |
CapitaCommercial Trust | | | | | 3,372,000 | | | | 2,742,731 | | |
RETAIL | | 0.9% | |
CapitaMall Trust | | | | | 2,576,000 | | | | 3,376,277 | | |
TOTAL SINGAPORE | | | | | | | 11,342,797 | | |
SWEDEN | | 1.2% | |
OFFICE | |
Castellum AB | | | | | 148,274 | | | | 1,837,791 | | |
Fabege AB | | | | | 358,180 | | | | 2,805,255 | | |
| | | | | | | 4,643,046 | | |
SWITZERLAND | | 0.5% | |
OFFICE | |
PSP Swiss Property AG | | | | | 21,950 | | | | 1,836,762 | | |
See accompanying notes to financial statements.
14
COHEN & STEERS GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2011
| | | | Number of Shares | | Value | |
UNITED KINGDOM | | 4.1% | | | | | | | | | |
DIVERSIFIED | | 2.5% | |
British Land Co., PLC | | | | | 930,883 | | | $ | 6,686,184 | | |
Land Securities Group PLC | | | | | 280,572 | | | | 2,769,053 | | |
| | | | | | | 9,455,237 | | |
RETAIL | | 1.6% | |
Hammerson PLC | | | | | 1,015,967 | | | | 5,680,068 | | |
TOTAL UNITED KINGDOM | | | | | | | 15,135,305 | | |
UNITED STATES | | 44.9% | |
DIVERSIFIED | | 2.3% | |
American Assets Trust | | | | | 83,985 | | | | 1,722,532 | | |
Forest City Enterprisesc | | | | | 108,338 | | | | 1,280,555 | | |
Vornado Realty Trust | | | | | 74,323 | | | | 5,712,466 | | |
| | | | | | | 8,715,553 | | |
HEALTH CARE | | 4.0% | |
HCP | | | | | 260,150 | | | | 10,778,014 | | |
Health Care REIT | | | | | 6,307 | | | | 343,921 | | |
Ventas | | | | | 65,306 | | | | 3,600,320 | | |
| | | | | | | 14,722,255 | | |
HOTEL | | 3.4% | |
Hersha Hospitality Trust | | | | | 350,219 | | | | 1,709,069 | | |
Host Hotels & Resorts | | | | | 466,125 | | | | 6,884,666 | | |
Hyatt Hotels Corp., Class Ac | | | | | 112,051 | | | | 4,217,600 | | |
| | | | | | | 12,811,335 | | |
INDUSTRIAL | | 3.1% | |
DCT Industrial Trust | | | | | 566,260 | | | | 2,899,251 | | |
First Industrial Realty Trustc | | | | | 311,512 | | | | 3,186,768 | | |
ProLogis | | | | | 187,034 | | | | 5,347,302 | | |
| | | | | | | 11,433,321 | | |
OFFICE | | 6.6% | |
Alexandria Real Estate Equities | | | | | 64,499 | | | | 4,448,496 | | |
BioMed Realty Trust | | | | | 151,844 | | | | 2,745,340 | | |
Boston Properties | | | | | 42,490 | | | | 4,232,004 | | |
Douglas Emmett | | | | | 100,420 | | | | 1,831,661 | | |
Kilroy Realty Corp. | | | | | 92,049 | | | | 3,504,305 | | |
Liberty Property Trust | | | | | 97,520 | | | | 3,011,418 | | |
See accompanying notes to financial statements.
15
COHEN & STEERS GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2011
| | | | Number of Shares | | Value | |
SL Green Realty Corp. | | | | | 71,916 | | | $ | 4,792,482 | | |
| | | | | | | 24,565,706 | | |
RESIDENTIAL | | 10.4% | | | | | | | | | |
APARTMENT | | 9.7% | | | | | | | | | |
Apartment Investment & Management Co. | | | | | 191,831 | | | | 4,394,848 | | |
AvalonBay Communities | | | | | 35,759 | | | | 4,670,125 | | |
BRE Properties | | | | | 74,728 | | | | 3,772,269 | | |
Colonial Properties Trust | | | | | 102,075 | | | | 2,129,285 | | |
Education Realty Trust | | | | | 288,047 | | | | 2,946,721 | | |
Equity Residential | | | | | 195,231 | | | | 11,134,024 | | |
Essex Property Trust | | | | | 10,599 | | | | 1,489,266 | | |
Post Properties | | | | | 53,736 | | | | 2,349,338 | | |
UDR | | | | | 121,514 | | | | 3,050,001 | | |
| | | | | | | 35,935,877 | | |
MANUFACTURED HOME | | 0.7% | | | | | | | | | |
Equity Lifestyle Properties | | | | | 42,145 | | | | 2,810,650 | | |
TOTAL RESIDENTIAL | | | | | | | 38,746,527 | | |
SELF STORAGE | | 3.2% | | | | | | | | | |
CubeSmart | | | | | 207,923 | | | | 2,212,301 | | |
Extra Space Storage | | | | | 123,583 | | | | 2,994,416 | | |
Public Storage | | | | | 48,585 | | | | 6,532,739 | | |
| | | | | | | 11,739,456 | | |
SHOPPING CENTER | | 10.7% | | | | | | | | | |
COMMUNITY CENTER | | 2.6% | | | | | | | | | |
Federal Realty Investment Trust | | | | | 20,881 | | | | 1,894,951 | | |
Kimco Realty Corp. | | | | | 112,458 | | | | 1,826,318 | | |
Regency Centers Corp. | | | | | 90,881 | | | | 3,418,943 | | |
Weingarten Realty Investors | | | | | 118,587 | | | | 2,587,568 | | |
| | | | | | | 9,727,780 | | |
REGIONAL MALL | | 8.1% | | | | | | | | | |
CBL & Associates Properties | | | | | 88,690 | | | | 1,392,433 | | |
General Growth Properties | | | | | 326,367 | | | | 4,902,032 | | |
Simon Property Group | | | | | 164,037 | | | | 21,150,931 | | |
Taubman Centers | | | | | 42,818 | | | | 2,658,998 | | |
| | | | | | | 30,104,394 | | |
TOTAL SHOPPING CENTER | | | | | | | 39,832,174 | | |
See accompanying notes to financial statements.
16
COHEN & STEERS GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2011
| | | | Number of Shares | | Value | |
SPECIALTY | | | 1.2% | | | | | | | | | | |
Digital Realty Trust | | | | | 30,401 | | | $ | 2,026,835 | | |
DuPont Fabros Technology | | | | | 106,455 | | | | 2,578,340 | | |
| | | | | | | 4,605,175 | | |
TOTAL UNITED STATES | | | | | | | 167,171,502 | | |
TOTAL COMMON STOCK (Identified cost–$333,227,822) | | | | | | | 363,200,679 | | |
SHORT-TERM INVESTMENTS | | | 0.1% | | | | | | | | | | |
MONEY MARKET FUNDS | |
BlackRock Liquidity Funds: FedFund, 0.01%e | | | | | 150,000 | | | | 150,000 | | |
Federated Government Obligations Fund, 0.01%e | | | | | 150,000 | | | | 150,000 | | |
TOTAL SHORT-TERM INVESTMENTS (Identified cost—$300,000) | | | | | | | 300,000 | | |
TOTAL INVESTMENTS (Identified cost—$333,527,822) | | | 97.7 | % | | | | | | | 363,500,679 | | |
OTHER ASSETS IN EXCESS OF LIABILITIES | | | 2.3 | | | | | | | | 8,530,468 | | |
NET ASSETS | | | 100.0 | % | | | | | | $ | 372,031,147 | | |
Glossary of Portfolio Abbreviations
EUR Euro Currency
REIT Real Estate Investment Trust
USD United States Dollar
Note: Percentages indicated are based on the net assets of the Fund.
a Illiquid security. Aggregate holdings equal 0.0% of net assets of the Fund.
b Fair valued security. This security has been valued at its fair value as determined in good faith under procedures established by and under the general supervision of the Fund's Board of Directors. Aggregate fair value securities represent 0.0% of the net assets of the Fund.
c Non-income producing security.
d Resale is restricted to qualified institutional investors. Aggregate holdings equal 0.2% of net assets of the Fund, of which 0.0% are illiquid.
e Rate quoted represents the seven day yield of the fund.
See accompanying notes to financial statements.
17
COHEN & STEERS GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2011
Sector Summary | | % of Net Assets | |
Diversified | | | 22.8 | % | |
Retail | | | 16.5 | % | |
Office | | | 15.8 | % | |
Residential | | | 15.5 | % | |
Shopping Center | | | 10.7 | % | |
Industrial | | | 4.5 | % | |
Health Care | | | 4.0 | % | |
Hotel | | | 3.4 | % | |
Self Storage | | | 3.2 | % | |
Specialty | | | 1.2 | % | |
Other | | | 2.4 | % | |
| | | 100.0 | % | |
See accompanying notes to financial statements.
18
COHEN & STEERS GLOBAL REALTY SHARES, INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2011
ASSETS: | |
Investments in securities, at value (Identified cost—$333,527,822) | | $ | 363,500,679 | | |
Cash | | | 98,522 | | |
Receivable for: | |
Investment securities sold | | | 7,115,674 | | |
Fund shares sold | | | 2,339,888 | | |
Dividends | | | 1,580,557 | | |
Other assets | | | 12,273 | | |
Total Assets | | | 374,647,593 | | |
LIABILITIES: | |
Payable for: | |
Fund shares redeemed | | | 1,014,558 | | |
Investment securities purchased | | | 1,002,151 | | |
Investment advisory fees | | | 286,134 | | |
Distribution fees | | | 6,494 | | |
Administration fees | | | 6,359 | | |
Shareholder servicing fees | | | 2,334 | | |
Directors' fees | | | 373 | | |
Other liabilities | | | 298,043 | | |
Total Liabilities | | | 2,616,446 | | |
NET ASSETS | | $ | 372,031,147 | | |
NET ASSETS consist of: | |
Paid-in capital | | $ | 467,962,160 | | |
Dividends in excess of net investment income | | | (5,716,084 | ) | |
Accumulated net realized loss | | | (120,191,257 | ) | |
Net unrealized appreciation | | | 29,976,328 | | |
| | $ | 372,031,147 | | |
See accompanying notes to financial statements.
19
COHEN & STEERS GLOBAL REALTY SHARES, INC.
STATEMENT OF ASSETS AND LIABILITIES—(Continued)
December 31, 2011
CLASS A SHARES: | |
NET ASSETS | | $ | 122,788,538 | | |
Shares issued and outstanding ($0.001 par value common stock outstanding) | | | 3,356,580 | | |
Net asset value and redemption price per share | | $ | 36.58 | | |
Maximum offering price per share ($36.58 ÷ 0.955)a | | $ | 38.30 | | |
CLASS B SHARES: | |
NET ASSETS | | $ | 910,848 | | |
Shares issued and outstanding ($0.001 par value common stock outstanding) | | | 24,932 | | |
Net asset value and offering price per shareb | | $ | 36.53 | | |
CLASS C SHARES: | |
NET ASSETS | | $ | 63,421,824 | | |
Shares issued and outstanding ($0.001 par value common stock outstanding) | | | 1,742,741 | | |
Net asset value and offering price per shareb | | $ | 36.39 | | |
CLASS I SHARES: | |
NET ASSETS | | $ | 184,909,937 | | |
Shares issued and outstanding ($0.001 par value common stock outstanding) | | | 5,034,587 | | |
Net asset value, offering and redemption price per share | | $ | 36.73 | | |
a On investments of $100,000 or more, the offering price is reduced.
b Redemption price per share is equal to the net asset value per share less any applicable deferred sales charge which varies with the length of time shares are held.
See accompanying notes to financial statements.
20
COHEN & STEERS GLOBAL REALTY SHARES, INC.
STATEMENT OF OPERATIONS
For the Year Ended December 31, 2011
Investment Income: | |
Dividend income (net of $688,237 of foreign withholding tax) | | $ | 11,740,984 | | |
Expenses: | |
Investment advisory fees | | | 3,900,443 | | |
Distribution fees—Class A | | | 427,657 | | |
Distribution fees—Class B | | | 9,724 | | |
Distribution fees—Class C | | | 529,170 | | |
Custodian fees and expenses | | | 448,414 | | |
Shareholder servicing fees—Class A | | | 171,063 | | |
Shareholder servicing fees—Class B | | | 3,241 | | |
Shareholder servicing fees—Class C | | | 176,390 | | |
Transfer agent fees and expenses | | | 264,085 | | |
Administration fees | | | 243,261 | | |
Registration and filing fees | | | 124,991 | | |
Professional fees | | | 114,406 | | |
Shareholder reporting expenses | | | 113,364 | | |
Directors' fees and expenses | | | 38,424 | | |
Line of credit fees | | | 16,887 | | |
Miscellaneous | | | 36,515 | | |
Total Expenses | | | 6,618,035 | | |
Net Investment Income | | | 5,122,949 | | |
Net Realized and Unrealized Gain (Loss): | |
Net realized loss on: | |
Investments | | | (12,463,877 | ) | |
Foreign currency transactions | | | (128,072 | ) | |
Net realized loss | | | (12,591,949 | ) | |
Net change in unrealized appreciation (depreciation) on: | |
Investments | | | (39,269,397 | ) | |
Foreign currency translations | | | 6,966 | | |
Net change in unrealized appreciation (depreciation) | | | (39,262,431 | ) | |
Net realized and unrealized loss | | | (51,854,380 | ) | |
Net Decrease in Net Assets Resulting from Operations | | $ | (46,731,431 | ) | |
See accompanying notes to financial statements.
21
COHEN & STEERS GLOBAL REALTY SHARES, INC.
STATEMENT OF CHANGES IN NET ASSETS
| | For the Year Ended December 31, 2011 | | For the Year Ended December 31, 2010 | |
Change in Net Assets: | |
From Operations: | |
Net investment income | | $ | 5,122,949 | | | $ | 4,725,479 | | |
Net realized gain (loss) | | | (12,591,949 | ) | | | 16,917,621 | | |
Net change in unrealized appreciation (depreciation) | | | (39,262,431 | ) | | | 31,170,279 | | |
Net increase (decrease) in net assets resulting from operations | | | (46,731,431 | ) | | | 52,813,379 | | |
Dividends and Distributions to Shareholders from: Net Investment Income: | | | | | | | | | |
Class A | | | (1,385,387 | ) | | | (5,809,907 | ) | |
Class B | | | (2,162 | ) | | | (46,546 | ) | |
Class C | | | (189,782 | ) | | | (1,853,578 | ) | |
Class I | | | (2,196,249 | ) | | | (5,036,764 | ) | |
Tax Return of Capital: | | | | | | | | | |
Class A | | | (453,670 | ) | | | — | | |
Class B | | | (3,442 | ) | | | — | | |
Class C | | | (189,712 | ) | | | — | | |
Class I | | | (509,214 | ) | | | — | | |
Total dividends and distributions to shareholders | | | (4,929,618 | ) | | | (12,746,795 | ) | |
Capital Stock Transactions: | |
Increase in net assets from Fund share transactions | | | 27,143,636 | | | | 115,660,797 | | |
Total increase (decrease) in net assets | | | (24,517,413 | ) | | | 155,727,381 | | |
Net Assets: | |
Beginning of year | | | 396,548,560 | | | | 240,821,179 | | |
End of yeara | | $ | 372,031,147 | | | $ | 396,548,560 | | |
a Includes dividends in excess of net investment income of $5,716,084 and $9,896,773, respectively.
See accompanying notes to financial statements.
22
COHEN & STEERS GLOBAL REALTY SHARES, INC.
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding throughout each year and other performance information derived from the financial statements. It should be read in conjunction with the financial statements and notes thereto.
| | Class A | |
| | For the Year Ended December 31, | |
Per Share Operating Performance: | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
Net asset value, beginning of year | | $ | 40.79 | | | $ | 36.11 | | | $ | 27.87 | | | $ | 50.32 | | | $ | 69.88 | | |
Income from investment operations: | |
Net investment income | | | 0.44 | a | | | 0.59 | a,b | | | 0.52 | a | | | 0.73 | a | | | 0.38 | c | |
Net realized and unrealized gain (loss) | | | (4.24 | ) | | | 5.48 | | | | 9.75 | | | | (22.18 | ) | | | (12.68 | ) | |
Total from investment operations | | | (3.80 | ) | | | 6.07 | | | | 10.27 | | | | (21.45 | ) | | | (12.30 | ) | |
Less dividends and distributions to shareholders from: | |
Net investment income | | | (0.30 | ) | | | (1.40 | ) | | | (2.01 | ) | | | (0.77 | ) | | | (0.39 | ) | |
Net realized gain | | | — | | | | — | | | | — | | | | — | | | | (6.90 | ) | |
Tax return of capital | | | (0.11 | ) | | | — | | | | (0.04 | ) | | | (0.25 | ) | | | — | | |
Total dividends and distributions to shareholders | | | (0.41 | ) | | | (1.40 | ) | | | (2.05 | ) | | | (1.02 | ) | | | (7.29 | ) | |
Redemption fees retained by the Fund | | | 0.00 | d | | | 0.01 | | | | 0.02 | | | | 0.02 | | | | 0.03 | | |
Net increase (decrease) in net asset value | | | (4.21 | ) | | | 4.68 | | | | 8.24 | | | | (22.45 | ) | | | (19.56 | ) | |
Net asset value, end of year | | $ | 36.58 | | | $ | 40.79 | | | $ | 36.11 | | | $ | 27.87 | | | $ | 50.32 | | |
Total investment returne | | | –9.42 | % | | | 17.19 | % | | | 37.45 | % | | | –42.79 | % | | | –18.85 | % | |
Ratios/Supplemental Data: | |
Net assets, end of year (in millions) | | $ | 122.8 | | | $ | 172.6 | | | $ | 121.4 | | | $ | 49.7 | | | $ | 62.2 | | |
Ratio of expenses to average daily net assets (before expense reduction) | | | 1.57 | %f | | | 1.56 | %f | | | 1.86 | %f | | | 1.72 | % | | | 1.67 | % | |
Ratio of expenses to average daily net assets (net of expense reduction) | | | 1.57 | %f | | | 1.56 | %f | | | 1.65 | %f | | | 1.64 | % | | | 1.57 | % | |
Ratio of net investment income to average daily net assets (before expense reduction) | | | 1.10 | %f | | | 1.58 | %f | | | 1.51 | % | | | 1.62 | % | | | 0.31 | % | |
Ratio of net investment income to average daily net assets (net of expense reduction) | | | 1.10 | %f | | | 1.58 | %f | | | 1.70 | % | | | 1.71 | % | | | 0.41 | % | |
Portfolio turnover rate | | | 105 | % | | | 110 | % | | | 170 | % | | | 127 | % | | | 228 | % | |
a Calculation based on average shares outstanding.
b 21.0% of gross income was attributable to dividends paid by Unibail-Rodamco.
c 13.8% of net investment income was attributable to a special dividend paid by Boston Properties.
d Amount is less than $0.005.
e Does not reflect sales charges, which would reduce return.
f Non class specific expenses are calculated at the Fund level and class specific expenses are calculated at the class level.
See accompanying notes to financial statements.
23
COHEN & STEERS GLOBAL REALTY SHARES, INC.
FINANCIAL HIGHLIGHTS—(Continued)
| | Class B | |
| | For the Year Ended December 31, | |
Per Share Operating Performance: | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
Net asset value, beginning of year | | $ | 40.76 | | | $ | 36.06 | | | $ | 27.82 | | | $ | 50.12 | | | $ | 69.65 | | |
Income from investment operations: | |
Net investment income (loss) | | | 0.18 | a | | | 0.30 | a,b | | | 0.35 | a | | | 0.42 | a | | | (0.01 | )c | |
Net realized and unrealized gain (loss) | | | (4.24 | ) | | | 5.53 | | | | 9.69 | | | | (22.02 | ) | | | (12.65 | ) | |
Total from investment operations | | | (4.06 | ) | | | 5.83 | | | | 10.04 | | | | (21.60 | ) | | | (12.66 | ) | |
Less dividends and distributions to shareholders from: | |
Net investment income | | | (0.06 | ) | | | (1.14 | ) | | | (1.78 | ) | | | (0.47 | ) | | | — | | |
Net realized gain | | | — | | | | — | | | | — | | | | — | | | | (6.90 | ) | |
Tax return of capital | | | (0.11 | ) | | | — | | | | (0.04 | ) | | | (0.25 | ) | | | — | | |
Total dividends and distributions to shareholders | | | (0.17 | ) | | | (1.14 | ) | | | (1.82 | ) | | | (0.72 | ) | | | (6.90 | ) | |
Redemption fees retained by the Fund | | | 0.00 | d | | | 0.01 | | | | 0.02 | | | | 0.02 | | | | 0.03 | | |
Net increase (decrease) in net asset value | | | (4.23 | ) | | | 4.70 | | | | 8.24 | | | | (22.30 | ) | | | (19.53 | ) | |
Net asset value, end of year | | $ | 36.53 | | | $ | 40.76 | | | $ | 36.06 | | | $ | 27.82 | | | $ | 50.12 | | |
Total investment returne | | | –10.02 | % | | | 16.43 | % | | | 36.58 | % | | | –43.14 | % | | | –19.40 | % | |
Ratios/Supplemental Data: | |
Net assets, end of year (in millions) | | $ | 0.9 | | | $ | 1.6 | | | $ | 1.8 | | | $ | 1.9 | | | $ | 3.5 | | |
Ratio of expenses to average daily net assets (before expense reduction) | | | 2.22 | %f | | | 2.21 | %f | | | 2.51 | %f | | | 2.37 | % | | | 2.32 | % | |
Ratio of expenses to average daily net assets (net of expense reduction) | | | 2.22 | %f | | | 2.21 | %f | | | 2.30 | %f | | | 2.28 | % | | | 2.22 | % | |
Ratio of net investment income (loss) to average daily net assets (before expense reduction) | | | 0.43 | %f | | | 0.82 | %f | | | 0.95 | % | | | 0.90 | % | | | (0.33 | )% | |
Ratio of net investment income (loss) to average daily net assets (net of expense reduction) | | | 0.43 | %f | | | 0.82 | %f | | | 1.19 | % | | | 0.99 | % | | | (0.23 | )% | |
Portfolio turnover rate | | | 105 | % | | | 110 | % | | | 170 | % | | | 127 | % | | | 228 | % | |
a Calculation based on average shares outstanding.
b 21.0% of gross income was attributable to dividends paid by Unibail-Rodamco.
c 13.8% of net investment income was attributable to a special dividend paid by Boston Properties.
d Amount is less than $0.005.
e Does not reflect sales charges, which would reduce return.
f Non class specific expenses are calculated at the Fund level and class specific expenses are calculated at the class level.
See accompanying notes to financial statements.
24
COHEN & STEERS GLOBAL REALTY SHARES, INC.
FINANCIAL HIGHLIGHTS—(Continued)
| | Class C | |
| | For the Year Ended December 31, | |
Per Share Operating Performance: | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
Net asset value, beginning of year | | $ | 40.64 | | | $ | 35.98 | | | $ | 27.79 | | | $ | 50.14 | | | $ | 69.68 | | |
Income from investment operations: | |
Net investment income | | | 0.19 | a | | | 0.33 | a,b | | | 0.34 | a | | | 0.46 | a | | | 0.03 | c | |
Net realized and unrealized gain (loss) | | | (4.23 | ) | | | 5.49 | | | | 9.67 | | | | (22.07 | ) | | | (12.66 | ) | |
Total from investment operations | | | (4.04 | ) | | | 5.82 | | | | 10.01 | | | | (21.61 | ) | | | (12.63 | ) | |
Less dividends and distributions to shareholders from: | |
Net investment income | | | (0.10 | ) | | | (1.17 | ) | | | (1.80 | ) | | | (0.51 | ) | | | (0.04 | ) | |
Net realized gain | | | — | | | | — | | | | — | | | | — | | | | (6.90 | ) | |
Tax return of capital | | | (0.11 | ) | | | — | | | | (0.04 | ) | | | (0.25 | ) | | | — | | |
Total dividends and distributions to shareholders | | | (0.21 | ) | | | (1.17 | ) | | | (1.84 | ) | | | (0.76 | ) | | | (6.94 | ) | |
Redemption fees retained by the Fund | | | 0.00 | d | | | 0.01 | | | | 0.02 | | | | 0.02 | | | | 0.03 | | |
Net increase (decrease) in net asset value | | | (4.25 | ) | | | 4.66 | | | | 8.19 | | | | (22.35 | ) | | | (19.54 | ) | |
Net asset value, end of year | | $ | 36.39 | | | $ | 40.64 | | | $ | 35.98 | | | $ | 27.79 | | | $ | 50.14 | | |
Total investment returne | | | –10.02 | % | | | 16.46 | % | | | 36.52 | % | | | –43.17 | % | | | –19.36 | % | |
Ratios/Supplemental Data: | |
Net assets, end of year (in millions) | | $ | 63.4 | | | $ | 66.7 | | | $ | 48.1 | | | $ | 39.7 | | | $ | 46.0 | | |
Ratio of expenses to average daily net assets (before expense reduction) | | | 2.22 | %f | | | 2.21 | %f | | | 2.51 | %f | | | 2.38 | % | | | 2.34 | % | |
Ratio of expenses to average daily net assets (net of expense reduction) | | | 2.22 | %f | | | 2.21 | %f | | | 2.30 | %f | | | 2.28 | % | | | 2.22 | % | |
Ratio of net investment income (loss) to average daily net assets (before expense reduction) | | | 0.49 | %f | | | 0.87 | %f | | | 0.93 | % | | | 1.01 | % | | | (0.34 | )%g | |
Ratio of net investment income (loss) to average daily net assets (net of expense reduction) | | | 0.49 | %f | | | 0.87 | %f | | | 1.16 | % | | | 1.10 | % | | | (0.22 | )%g | |
Portfolio turnover rate | | | 105 | % | | | 110 | % | | | 170 | % | | | 127 | % | | | 228 | % | |
a Calculation based on average shares outstanding.
b 21.0% of gross income was attributable to dividends paid by Unibail-Rodamco.
c 13.8% of net investment income was attributable to a special dividend paid by Boston Properties.
d Amount is less than $0.005.
e Does not reflect sales charges, which would reduce return.
f Non class specific expenses are calculated at the Fund level and class specific expenses are calculated at the class level.
g Because the ratios are based on average net assets, the results may differ from the per share amount reflected above.
See accompanying notes to financial statements.
25
COHEN & STEERS GLOBAL REALTY SHARES, INC.
FINANCIAL HIGHLIGHTS—(Continued)
| | Class I | |
| | For the Year Ended December 31, | |
Per Share Operating Performance: | | 2011 | | 2010 | | 2009 | | 2008 | | 2007 | |
Net asset value, beginning of year | | $ | 40.96 | | | $ | 36.26 | | | $ | 27.98 | | | $ | 50.54 | | | $ | 70.14 | | |
Income from investment operations: | |
Net investment income | | | 0.60 | a | | | 0.71 | a,b | | | 0.65 | a | | | 0.92 | a | | | 0.57 | c | |
Net realized and unrealized gain (loss) | | | (4.27 | ) | | | 5.51 | | | | 9.75 | | | | (22.34 | ) | | | (12.72 | ) | |
Total from investment operations | | | (3.67 | ) | | | 6.22 | | | | 10.40 | | | | (21.42 | ) | | | (12.15 | ) | |
Less dividends and distributions to shareholders from: | |
Net investment income | | | (0.45 | ) | | | (1.53 | ) | | | (2.10 | ) | | | (0.91 | ) | | | (0.59 | ) | |
Net realized gain | | | — | | | | — | | | | — | | | | — | | | | (6.90 | ) | |
Tax return of capital | | | (0.11 | ) | | | — | | | | (0.04 | ) | | | (0.25 | ) | | | — | | |
Total dividends and distributions to shareholders | | | (0.56 | ) | | | (1.53 | ) | | | (2.14 | ) | | | (1.16 | ) | | | (7.49 | ) | |
Redemption fees retained by the Fund | | | 0.00 | d | | | 0.01 | | | | 0.02 | | | | 0.02 | | | | 0.04 | | |
Net increase (decrease) in net asset value | | | (4.23 | ) | | | 4.70 | | | | 8.28 | | | | (22.56 | ) | | | (19.60 | ) | |
Net asset value, end of year | | $ | 36.73 | | | $ | 40.96 | | | $ | 36.26 | | | $ | 27.98 | | | $ | 50.54 | | |
Total investment return | | | –9.11 | %e | | | 17.61 | %e | | | 37.82 | % | | | –42.60 | % | | | –18.58 | % | |
Ratios/Supplemental Data: | |
Net assets, end of year (in millions) | | $ | 184.9 | | | $ | 155.7 | | | $ | 69.5 | | | $ | 41.6 | | | $ | 47.1 | | |
Ratio of expenses to average daily net assets (before expense reduction) | | | 1.22 | %f | | | 1.21 | %f | | | 1.51 | %f | | | 1.41 | % | | | 1.27 | % | |
Ratio of expenses to average daily net assets (net of expense reduction) | | | 1.22 | %f | | | 1.21 | %f | | | 1.30 | %f | | | 1.29 | % | | | 1.21 | % | |
Ratio of net investment income to average daily net assets (before expense reduction) | | | 1.52 | %f | | | 1.88 | %f | | | 1.93 | % | | | 2.13 | % | | | 0.66 | % | |
Ratio of net investment income to average daily net assets (net of expense reduction) | | | 1.52 | %f | | | 1.88 | %f | | | 2.14 | % | | | 2.25 | % | | | 0.72 | % | |
Portfolio turnover rate | | | 105 | % | | | 110 | % | | | 170 | % | | | 127 | % | | | 228 | % | |
a Calculation based on average shares outstanding.
b 21.0% of gross income was attributable to dividends paid by Unibail-Rodamco.
c 13.8% of net investment income was attributable to a special dividend paid by Boston Properties.
d Amount is less than $0.005.
e The net asset value (NAV) disclosed in the December 31, 2010 annual report reflects adjustments in accordance with accounting principles generally accepted in the United States of America and as such, differs from the NAV reported on December 31, 2010. The total return reported is based on the unadjusted NAV which was the official NAV for executing transactions on Decemb er 31, 2010.
f Non class specific expenses are calculated at the Fund level and class specific expenses are calculated at the class level.
See accompanying notes to financial statements.
26
COHEN & STEERS GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS
Note 1. Significant Accounting Policies
Cohen & Steers Global Realty Shares, Inc. (the Fund) was incorporated under the laws of the State of Maryland on February 14, 1997 and is registered under the Investment Company Act of 1940, as amended, as a diversified, open-end management investment company. The Fund's investment objective is total return. The authorized shares of the Fund are divided into four classes designated Class A, B, C, and I shares. Class B shares are no longer offered except through dividend reinvestment and permitted exchanges by existing Class B shareholders. Each of the Fund's shares has equal dividend, liquidation and voting rights (except for matters relating to distributions and shareholder servicing of such shares). Class B shares automatically convert to Class A shares at the end of the month which precedes the eighth anniversary of the purchase date.
The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.
Portfolio Valuation: Investments in securities that are listed on the New York Stock Exchange are valued, except as indicated below, at the last sale price reflected at the close of the New York Stock Exchange on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and asked prices on such day or, if no asked price is available, at the bid price.
Securities not listed on the New York Stock Exchange but listed on other domestic or foreign securities exchanges are valued in a similar manner. Securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined as reflected on the tape at the close of the exchange representing the principal market for such securities. If after the close of a foreign market, but prior to the close of business on the day the securities are being valued, market conditions change significantly, certain foreign securities may be fair valued pursuant to procedures established by the Board of Directors.
Readily marketable securities traded in the over-the-counter market, including listed securities whose primary market is believed by Cohen & Steers Capital Management, Inc. (the advisor) to be over-the-counter, are valued at the official closing prices as reported by sources as the Board of Directors deem appropriate to reflect their fair market value. If there has been no sale on such day, the securities are valued at the mean of the closing bid and asked prices on such day, or if no asked price is available, at the bid price.
Securities for which market prices are unavailable will be valued at fair value pursuant to procedures approved by the Fund's Board of Directors. Circumstances in which market prices may be unavailable include, but are not limited to, when trading in a security is suspended, the exchange on which the security is traded is subject to an unscheduled close or disruption or material events occur after the close of the exchange on which the security is principally traded. In these circumstances, the Fund
27
COHEN & STEERS GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems appropriate. These may include, but are not limited to, recent transactions in comparable securities, information relating to the specific security and developments in the markets.
The Fund's use of fair value pricing may cause the net asset value of Fund shares to differ from the net asset value that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.
Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates value. Investments in open-end mutual funds are valued at their closing net asset value.
Fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market, the most advantageous market for the investment or liability. The hierarchy of inputs that are used in determining the fair value of the Fund's investments is summarized below.
• Level 1—quoted prices in active markets for identical investments
• Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.)
• Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
The following is a summary of the inputs used as of December 31, 2011 in valuing the Fund's investments carried at value:
| | Total | | Quoted Prices In Active Market for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | Significant Unobservable Inputs (Level 3)* | |
Common Stock | | $ | 363,200,679 | | | $ | 363,200,679 | | | $ | — | | | | — | | |
Money Market Funds | | | 300,000 | | | | — | | | | 300,000 | | | | — | | |
Total Investments | | $ | 363,500,679 | | | $ | 363,200,679 | | | $ | 300,000 | | | | — | | |
* BGP Holdings PLC was acquired via a spinoff and has been fair valued at zero pursuant to the Fund's fair value procedures and classified as a Level 3 security. Its likelihood of having value in the future is remote.
28
COHEN & STEERS GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
Security Transactions, Investment Income and Expense Allocations: Security transactions are recorded on trade date. Realized gains and losses on investments sold are recorded on the basis of identified cost. Interest income is recorded on the accrual basis. Discounts are accreted and premiums are amortized over the life of the respective securities. Dividend income is recorded on the ex-dividend date, except for certain dividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date. The Fund records distributions received in excess of income from underlying investments as a reduction of cost of investments and/or an increase in realized gain. Such amounts are based on estimates if actual amounts are not available, and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Fund adjusts the estimated amounts of the components of distributions (and consequently its net investment income) as an increase to unrealized appreciation/(depreciation) and realized gain/(loss) on investments as necessary once the issuers provide information about the actual composition of the distributions. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.
Foreign Currency Translations: The books and records of the Fund are maintained in U.S. dollars as follows: (1) the foreign currency market value of investment securities, other assets and liabilities and foreign currency contracts are translated at the exchange rates prevailing at the end of the period; and (2) purchases, sales, income and expenses are translated at the exchange rates prevailing on the respective dates of such transactions. The resultant exchange gains and losses are recorded as realized and unrealized gain/loss on foreign exchange transactions. Pursuant to U.S. federal income tax regulations, certain foreign exchange gains/losses included in realized and unrealized gain/loss are included in or are a reduction of ordinary income for federal income tax purposes. The Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of the securities.
Foreign Securities: The Fund may directly purchase securities of foreign issuers. Investing in securities of foreign issuers involves special risks not typically associated with investing in securities of U.S. issuers. The risks include possible revaluation of currencies, the ability to repatriate funds, less complete financial information about companies and possible future adverse political and economic developments. Moreover, securities of many foreign issuers and their markets may be less liquid and their prices more volatile than those of securities of comparable U.S. issuers.
Dividends and Distributions to Shareholders: Dividends from net investment income and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from GAAP. Dividends from net investment income, if any, are declared and paid semi-annually. Net realized capital gains, unless offset by any available capital loss carryforward, are typically distributed to shareholders at least annually. Dividends and distributions to shareholders are recorded on the ex-dividend date and are automatically reinvested in full and fractional shares of the Fund based on the net asset value per share at the close of business on the payable date unless the shareholder has elected to have them paid in cash.
29
COHEN & STEERS GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
Distributions paid by the Fund are subject to recharacterization for tax purposes. Based upon the results of operations for the year ended December 31, 2011, a portion of the dividends have been reclassified to return of capital.
Income Taxes: It is the policy of the Fund to continue to qualify as a regulated investment company, if such qualification is in the best interest of the shareholders, by complying with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies, and by distributing substantially all of its taxable earnings to its shareholders. Accordingly, no provision for federal income or excise tax is necessary. Dividend and interest income from holdings in non-U.S. securities is recorded net of non-U.S. taxes paid. Security and foreign currency transactions and gains realized by the Fund on the sale of securities in certain non-U.S. markets are subject to non-U.S. taxes. The Fund records a liability based on any unrealized gains on securities held in these markets in order to estimate the potential non-U.S. taxes due upon the sale of these securities. Management has analyzed the Fund's tax positions taken on federal income tax returns as well as its tax positions in non-U.S. jurisdictions where it trades for all open tax years and has concluded that as of December 31, 2011, no additional provisions for income tax would be required in the Fund's financial statements. The Fund's tax positions for the tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service, state departments of revenue and by foreign tax authorities.
Note 2. Investment Advisory and Administration Fees and Other Transactions with Affiliates
Investment Advisory Fees: The advisor serves as the Fund's investment advisor pursuant to an investment advisory agreement (the investment advisory agreement). Under the terms of the investment advisory agreement, the advisor provides the Fund with day-to-day investment decisions and generally manages the Fund's investments in accordance with the stated policies of the Fund, subject to the supervision of the Board of Directors.
For the services provided to the Fund, the advisor receives a fee, accrued daily and paid monthly, at the annual rate of 0.90% of the average daily net assets of the Fund.
For the period January 1, 2011, through April 30, 2011, the advisor contractually agreed to waive its fee and/or reimburse the Fund for expenses incurred to the extent necessary to maintain the Fund's operating expenses at 1.65% for Class A shares, 2.30% for Class B and Class C shares and 1.30% for Class I shares.
Under subadvisory agreements between the advisor and each of Cohen & Steers Asia Limited, Cohen & Steers UK Limited and Cohen & Steers Europe S.A. (collectively the subadvisors), affiliates of the advisor, the subadvisors are responsible for managing the Fund's investments in certain non-U.S. real estate securities. For their services provided under the subadvisory agreements, the advisor (not the Fund) pays the subadvisors. The advisor allocates 50% of the advisory fee received from the Fund among itself and each subadvisor based on the portion of the Fund's average assets managed by the advisor and each subadvisor.
30
COHEN & STEERS GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
Administration Fees: The Fund has entered into an administration agreement with the advisor under which the advisor performs certain administrative functions for the Fund and receives a fee, accrued daily and paid monthly, at the annual rate of 0.02% of the Fund's average daily net assets. For the year ended December 31, 2011, the Fund paid the advisor $86,677 in fees under this administration agreement. Additionally, the Fund pays State Street Bank and Trust Company as co-administrator under a fund accounting and administration agreement.
Distribution Fees: Shares of the Fund are distributed by Cohen & Steers Securities, LLC (the distributor), an affiliated entity of the advisor. The Fund has adopted a distribution plan (the plan) pursuant to Rule 12b-1 under the Investment Company Act of 1940. The plan provides that the Fund will pay the distributor a fee, accrued daily and paid monthly, at an annual rate of up to 0.25% of the average daily net assets attributable to the Class A shares and up to 0.75% of the average daily net assets attributable to the Class B and Class C shares.
For the year ended December 31, 2011, the Fund has been advised that the distributor received $20,855 in sales commissions from the sale of Class A shares and that the distributor also received $1,253, $1,386 and $15,041 of contingent deferred sales charges relating to redemptions of Class A, Class B and Class C shares, respectively. The distributor has advised the Fund that proceeds from the contingent deferred sales charges on the Class B and Class C shares are paid to the distributor and are used by the distributor to defray its expenses related to providing distribution related services to the Fund in connection with the sale of these classes, including payments to dealers and other financial intermediaries for selling these classes and interest and other financing costs associated with these classes.
Shareholder Servicing Fees: For shareholder services, the Fund pays the distributor a fee, accrued daily and paid monthly, at an annual rate of up to 0.10% of the average daily net asset value of the Fund's Class A shares and up to 0.25% of the average daily net asset value of the Fund's Class B and Class C shares. The distributor is responsible for paying qualified financial institutions for shareholder services.
Effective January 1, 2012, the Board of Directors of the Fund approved the adoption of a shareholder services plan for the Fund's Class I shares, pursuant to which the Fund pays the distributor a fee at an annual rate of up to 0.10% of the average daily net asset value of the Fund's Class I shares.
Directors' and Officers' Fees: Certain directors and officers of the Fund are also directors, officers, and/or employees of the advisor. The Fund does not pay compensation to any directors and officers affiliated with the advisor except for the Chief Compliance Officer, who received compensation from the advisor that was reimbursed by the Fund in the amount of $6,986 for the year ended December 31, 2011.
Note 3. Purchases and Sales of Securities
Purchases and sales of securities, excluding short-term investments, for the year ended December 31, 2011, totaled $478,519,502 and $448,314,668, respectively.
31
COHEN & STEERS GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
Note 4. Income Tax Information
The tax character of dividends and distributions paid was as follows:
| | For the Year Ended December 31, | |
| | 2011 | | 2010 | |
Ordinary income | | $ | 3,773,580 | | | $ | 12,746,795 | | |
Tax return of capital | | | 1,156,038 | | | | — | | |
Total dividends and distributions | | $ | 4,929,618 | | | $ | 12,746,795 | | |
As of December 31, 2011, the tax-basis components of accumulated earnings and the federal tax cost were as follows:
Cost for federal income tax purposes | | $ | 361,290,151 | | |
Gross unrealized appreciation | | $ | 14,407,708 | | |
Gross unrealized depreciation | | | (12,197,180 | ) | |
Net unrealized appreciation | | $ | 2,210,528 | | |
As of December 31, 2011, the Fund had a net capital loss carryforward of $93,870,309 which may be used to offset future capital gains. These losses are comprised of a short-term capital loss carryover of $12,378,807 recognized during the current year which under current Federal income tax rules may offset capital gains recognized in any future period but must be utilized prior to using the balance of its short-term capital loss carryovers of which $46,657,842 will expire on December 31, 2016 and $34,833,660 will expire on December 31, 2017. In addition, the Fund incurred short-term capital losses of $3,569,300 and net ordinary losses of $1,003,899 after October 31, 2011, that it has elected to treat as arising in the following fiscal year.
As of December 31, 2011, the Fund had temporary book/tax differences primarily attributable to wash sales on portfolio securities and unrealized appreciation on passive foreign investment companies and permanent book/tax differences primarily attributable to foreign currency transactions, sales of passive foreign investment companies and income redesignations. To reflect reclassifications arising from the permanent differences, accumulated net realized loss was charged $2,831,320 and dividends in excess of net investment income was credited $2,831,320. Net assets were not affected by this reclassification.
32
COHEN & STEERS GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
Note 5. Capital Stock
The Fund is authorized to issue 50 million shares of capital stock, at a par value of $0.001 per share. The Board of Directors of the Fund may increase or decrease the aggregate number of shares of common stock that the Fund has authority to issue. Transactions in Fund shares were as follows:
| | For the Year Ended December 31, 2011 | | For the Year Ended December 31, 2010 | |
| | Shares | | Amount | | Shares | | Amount | |
Class A: | |
Sold | | | 1,684,192 | | | $ | 68,475,975 | | | | 3,268,388 | | | $ | 122,310,120 | | |
Issued as reinvestment of dividends and distributions | | | 37,312 | | | | 1,538,270 | | | | 125,624 | | | | 4,742,534 | | |
Redeemed | | | (2,595,457 | ) | | | (100,324,206 | ) | | | (2,526,353 | ) | | | (98,101,000 | ) | |
Redemption fees retained by the Funda | | | — | | | | 6,543 | | | | — | | | | 27,650 | | |
Net increase (decrease) | | | (873,953 | ) | | $ | (30,303,418 | ) | | | 867,659 | | | $ | 28,979,304 | | |
Class B: | |
Sold | | | 769 | | | $ | 32,338 | | | | 222 | | | $ | 8,409 | | |
Issued as reinvestment of dividends and distributions | | | 97 | | | | 4,088 | | | | 829 | | | | 31,424 | | |
Redeemed | | | (16,167 | ) | | | (660,104 | ) | | | (11,665 | ) | | | (427,214 | ) | |
Redemption fees retained by the Funda | | | — | | | | 59 | | | | — | | | | 316 | | |
Net decrease | | | (15,301 | ) | | $ | (623,619 | ) | | | (10,614 | ) | | $ | (387,065 | ) | |
Class C: | |
Sold | | | 624,076 | | | $ | 25,297,145 | | | | 712,525 | | | $ | 26,661,268 | | |
Issued as reinvestment of dividends and distributions | | | 5,296 | | | | 223,853 | | | | 28,056 | | | | 1,063,079 | | |
Redeemed | | | (527,563 | ) | | | (20,622,717 | ) | | | (435,856 | ) | | | (16,121,935 | ) | |
Redemption fees retained by the Funda | | | — | | | | 2,499 | | | | — | | | | 10,075 | | |
Net increase | | | 101,809 | | | $ | 4,900,780 | | | | 304,725 | | | $ | 11,612,487 | | |
33
COHEN & STEERS GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
| | For the Year Ended December 31, 2011 | | For the Year Ended December 31, 2010 | |
| | Shares | | Amount | | Shares | | Amount | |
Class I: | |
Sold | | | 3,440,938 | | | $ | 137,329,314 | | | | 2,364,308 | | | $ | 93,732,299 | | |
Issued as reinvestment of dividends and distributions | | | 45,746 | | | | 1,840,873 | | | | 99,813 | | | | 3,789,911 | | |
Redeemed | | | (2,251,802 | ) | | | (86,006,329 | ) | | | (580,547 | ) | | | (22,081,052 | ) | |
Redemption fees retained by the Funda | | | — | | | | 6,035 | | | | — | | | | 14,913 | | |
Net increase | | | 1,234,882 | | | $ | 53,169,893 | | | | 1,883,574 | | | $ | 75,456,071 | | |
a A 2% redemption fee may be charged on shares sold within 60 days of the time of purchase. Redemption fees are paid directly to the Fund. Effective March 1, 2011, the Fund no longer charges redemption fees.
Note 6. Borrowings
The Fund, in conjunction with other Cohen & Steers funds, is a party to a $200,000,000 syndicated credit agreement (the credit agreement) with State Street Bank and Trust Company, as administrative agent and operations agent, and the lenders identified in the credit agreement, which expires January 27, 2012. The Fund pays a commitment fee of 0.125% per annum on its proportionate share of the unused portion of the credit agreement. (For the period January 1, 2011 through January 28, 2011, the commitment fee was 0.15%). Effective January 27, 2012, the credit agreement was renewed under similar terms and expires January 25, 2013. The commitment fee was reduced to 0.10%.
During the year ended December 31, 2011, the Fund did not borrow under the credit agreement.
Note 7. Other
In the normal course of business, the Fund enters into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is dependent on claims that may be made against the Fund in the future and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.
Note 8. New Accounting Pronouncement
In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2011-04, "Fair Value Measurements and Disclosures (Topic 820)—Amendments to Achieve
34
COHEN & STEERS GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs" ("ASU 2011-04"). ASU 2011-04 clarifies the application of existing fair value measurement requirements, changes certain principles related to measuring fair value, and requires additional disclosures about fair value measurements.
Required disclosures are expanded under the new guidance, especially for fair value measurements that are categorized within Level 3 of the fair value hierarchy, for which quantitative information about the unobservable inputs used, and a narrative description of the valuation processes in place and sensitivity of recurring Level 3 measurements to changes in unobservable inputs will be required.
Management is currently evaluating the impact the adoption of this pronouncement will have on the Fund's financial statements. ASU 2011-04 is effective for fiscal years and interim periods beginning after December 15, 2011.
Note 9. Subsequent Events
Events and transactions occurring after December 31, 2011 and through the date that the financial statements were issued, have been evaluated in the preparation of the financial statements and no additional disclosure is required.
35
COHEN & STEERS GLOBAL REALTY SHARES, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
Cohen & Steers Global Realty Shares, Inc.
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Cohen & Steers Global Realty Shares, Inc. (the "Fund") at December 31, 2011, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2011 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
February 17, 2012
36
COHEN & STEERS GLOBAL REALTY SHARES, INC.
TAX INFORMATION—2011 (Unaudited)
Pursuant to the Jobs and Growth Relief Reconciliation Act of 2003, the Fund designates qualified dividend income of $4,322,637.
The Fund has elected, pursuant to section 853 of the Internal Revenue Code, to pass through foreign taxes of $549,057. The Fund generated net foreign source income of $9,241,592 with respect to this election.
OTHER INFORMATION
A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 800-330-7348, (ii) on our Web site at cohenandsteers.com or (iii) on the Securities and Exchange Commission's Web site at http://www.sec.gov. In addition, the Fund's proxy voting record for the most recent 12-month period ended June 30 is available by August 31 of each year (i) without charge, upon request, by calling 800-330-7348 or (ii) on the SEC's Web site at http://www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are available (i) without charge, upon request by calling 800-330-7348, or (ii) on the SEC's Web site at http://www.sec.gov. In addition, the Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.
Please note that the distributions paid by the Fund to shareholders are subject to recharacterization for tax purposes. The Fund may also pay distributions in excess of the Fund's net investment company taxable income and this excess could be a tax free return of capital distributed from the Fund's assets. The final tax treatment of all distributions is reported to shareholders on their 1099-DIV forms, which are mailed after the close of each calendar year.
37
COHEN & STEERS GLOBAL REALTY SHARES, INC.
MANAGEMENT OF THE FUND
The business and affairs of the Fund are managed under the direction of the Board of Directors. The Board of Directors approves all significant agreements between the Fund and persons or companies furnishing services to it, including the Fund's agreements with its advisor, administrator, co-administrator, custodian and transfer agent. The management of the Fund's day-to-day operations is delegated to its officers, the advisor, administrator and co-administrator, subject always to the investment objective and policies of the Fund and to the general supervision of the Board of Directors.
The Board of Directors and officers of the Fund and their principal occupations during at least the past five years are set forth below. The statement of additional information (SAI) includes additional information about fund directors and is available, without charge, upon request by calling 800-330-7348.
Name, Address1 and Age | | Position(s) Held With Fund | | Term of Office2 | | Principal Occupation During At Least The Past 5 Years (Including Other Directorships Held) | | Number of Funds Within Fund Complex Overseen by Director (Including the Fund) | | Length of Time Served3 | |
Interested Director4 | | | | | | | | | | | |
|
Robert H. Steers Age: 58 | | Director and Co-Chairman | | Until next election of directors | | Co-Chairman and Co-Chief Executive Officer of Cohen & Steers Capital Management, Inc. (the Advisor) since 2003 and its parent, Cohen & Steers, Inc. since 2004. Vice President of Cohen & Steers Securities, LLC. | | | 19 | | | 1991 to present | |
|
Martin Cohen5 Age: 63 | | Director and Co-Chairman | | Until next election of directors | | Co-Chairman and Co-Chief Executive Officer of the Advisor since 2003 and Cohen & Steers, Inc. since 2004. Prior to that, President of the Advisor; Vice President of Cohen & Steers Securities, LLC. | | | 19 | | | 1991 to present | |
|
Disinterested Directors | | | | | | | | | | | |
|
Michael G. Clark Age: 46 | | Director | | Until next election of directors | | From May 2006 to June 2011, President and Chief Executive Officer of DWS Funds and Managing Director of Deutsche Asset Management. | | | 19 | | | June 2011 to present | |
|
(table continued on next page)
38
COHEN & STEERS GLOBAL REALTY SHARES, INC.
(table continued from previous page)
Name, Address1 and Age | | Position(s) Held With Fund | | Term of Office2 | | Principal Occupation During At Least The Past 5 Years (Including Other Directorships Held) | | Number of Funds Within Fund Complex Overseen by Director (Including the Fund) | | Length of Time Served3 | |
Bonnie Cohen5 Age: 69 | | Director | | Until next election of directors | | Consultant. Board Member, United States Department of Defense Business Board since 2010; Advisory Board member, Posse Foundation since 2004; Trustee, H. Rubenstein Foundation since 1996; Trustee, District of Columbia Public Libraries since 2004; Board member Teluride Mountain Film Festival since 2010; Former Director, Reis, Inc. (real estate analytics firm) from 2003 to 2009; Former member of the Investment Committee, The Moriah Fund from 2002 to 2008; Former Board member, Foundation for Arts and Preservations in Embassies from 2001 to 2009; Former Under Secretary of State for Management, United States Department of State, 1996-2000. | | | 19 | | | 2001 to present | |
|
George Grossman Age: 58 | | Director | | Until next election of directors | | Attorney-at-law | | | 19 | | | 1993 to present | |
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Richard E. Kroon Age: 69 | | Director | | Until next election of directors | | Member of Investment Committee, Monmouth University since 2004; Retired Chairman and Managing Partner of Sprout Group venture capital funds, then an affiliate of Donaldson, Lufkin and Jenrette Securities Corporation from 1981 to 2001. Former chairman of the National Venture Capital Association for the year 2000. | | | 19 | | | 2004 to present | |
|
(table continued on next page)
39
COHEN & STEERS GLOBAL REALTY SHARES, INC.
(table continued from previous page)
Name, Address1 and Age | | Position(s) Held With Fund | | Term of Office2 | | Principal Occupation During At Least The Past 5 Years (Including Other Directorships Held) | | Number of Funds Within Fund Complex Overseen by Director (Including the Fund) | | Length of Time Served3 | |
Richard J. Norman Age: 68 | | Director | | Until next election of directors | | Private Investor. Member, District of Columbia Department of Corrections Chaplains Corps from 2008 to February 2010; Member, Montgomery County, Maryland Department of Corrections Chaplains Corp since February 2010; Special Representative, Salvation Army World Service Organization (SAWSO) since 2010; Advisory Board Member, The Salvation Army since 1985; Financial Education Fund Chair, The Foundation Board of Maryland Public Television since 2009; Former President, Executive Committee, Chair of Investment Committee, The Foundation Board of Maryland Public Television from 1997 to 2008. Prior thereto, Investment Representative of Morgan Stanley Dean Witter from 1966 to 2000. | | | 19 | | | 2001 to present | |
|
Frank K. Ross Age: 68 | | Director | | Until next election of directors | | Visiting Professor of Accounting, Howard University School of Business since 2004; Board member and Audit Committee Chair and Human Resources and Compensation Committee Member, Pepco Holdings, Inc. (electric utility) since 2004. Formerly, Midatlantic Area Managing Partner for Assurance Services at KPMG LLP and Managing Partner of its Washington, DC offices from 1977 to 2003. | | | 19 | | | 2004 to present | |
|
(table continued on next page)
40
COHEN & STEERS GLOBAL REALTY SHARES, INC.
(table continued from previous page)
Name, Address1 and Age | | Position(s) Held With Fund | | Term of Office2 | | Principal Occupation During At Least The Past 5 Years (Including Other Directorships Held) | | Number of Funds Within Fund Complex Overseen by Director (Including the Fund) | | Length of Time Served3 | |
Willard H. Smith Jr.6 Age: 75 | | Director | | Until next election of directors | | Board member, Essex Property Trust, Inc. since 1996; Former Board member, Realty Income Corporation from 1996 to 2009; Former Board member, Highwoods Property Trust from 1996 to 2005; Former Board member, Crest Net Lease, Inc. from 1999 to 2009 Formerly, Managing Director at Merrill Lynch & Co., Equity Capital Markets Division, from 1983 to 1995. | | | 19 | | | 1996 to present | |
|
C. Edward Ward Jr. Age: 65 | | Director | | Until next election of directors | | Member of The Board of Trustees of Manhattan College, Riverdale, New York since 2004. Formerly Director of closed-end fund management for the New York Stock Exchange, where he worked from 1979 to 2004. | | | 19 | | | 2004 to present | |
|
1 The address for each director is 280 Park Avenue, New York, NY 10017.
2 On March 12, 2008, the Board of Directors adopted a mandatory retirement policy stating a Director must retire from the Board on December 31st of the year in which he or she turns 75 years of age.
3 The length of time served represents the year in which the director was first elected or appointed to any fund in the Cohen & Steers fund complex.
4 "Interested person", as defined in the 1940 Act, of the fund because of affiliation with CSCM (Interested Directors).
5 Martin Cohen and Bonnie Cohen are not related.
6 Effective December 31, 2011, Willard H. Smith Jr. retired from the Board of Directors in accordance with the mandatory retirement policy.
41
COHEN & STEERS GLOBAL REALTY SHARES, INC.
The officers of the fund (other than Messrs. Cohen and Steers, whose biographies are provided above), their address, their ages and their principal occupations for at least the past five years are set forth below.
Name, Address and Age1 | | Position(s) Held With Fund | | Principal Occupation During At Least the Past 5 Years | | Length of Time Served2 | |
Adam M. Derechin Age: 47 | | President and Chief Executive Officer | | Chief Operating Officer of CSCM (since 2003) and CNS (since 2004). Prior to that, Senior Vice President of CSCM and Vice President and Assistant Treasurer of the Cohen & Steers funds. | | Since 2005 | |
|
Joseph M. Harvey Age: 48 | | Vice President | | President and Chief Investment Officer of CSCM (since 2003) and President of CNS (since 2004). Prior to that, Senior Vice President and Director of Investment Research of CSCM. | | Since 2004 | |
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Scott Crowe Age: 34 | | Vice President | | Senior Vice President and Global Research Strategist of the Advisor since 2007. Prior thereto, Executive Director at UBS and head of U.S. REITs and a global strategist. He also worked at UBS Warburg as a real estate analyst. | | Since 2008 | |
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Francis C. Poli Age: 49 | | Secretary | | Executive Vice President, Secretary and General Counsel of CSCM and CNS since March 2007. Prior thereto, General Counsel of Allianz Global Investors of America LP. | | Since 2007 | |
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James Giallanza Age: 45 | | Treasurer and Chief Financial Officer | | Senior Vice President of CSCM since September 2006. Prior thereto, Deputy Head of the US Funds Administration and Treasurer & CFO of various mutual funds within the Legg Mason (formally Citigroup Asset Management) fund complex from August 2004 to September 2006; Director/Controller of the US wholesale business at UBS Global Asset Management (U.S.) from September 2001 to July 2004. | | Since 2006 | |
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Lisa D. Phelan Age: 43 | | Chief Compliance Officer | | Senior Vice President and Director of Compliance of CSCM since 2007 and prior to that, Vice President since 2006. Chief Compliance Officer of CSSL since 2004. Prior to that, Compliance Officer of CSCM since 2004. Chief Compliance Officer, Avatar Associates & Overture Asset Managers, 2003-2004. | | Since 2006 | |
|
1 The address of each officer is 280 Park Avenue, New York, NY 10017.
2 Officers serve one-year terms. The length of time served represents the year in which the officer was first elected to that position in any fund in the Cohen & Steers fund complex. All of the officers listed above are officers of one or more of the other funds in the complex.
42
COHEN & STEERS GLOBAL REALTY SHARES, INC.
Cohen & Steers Privacy Policy
Facts | | What Does Cohen & Steers Do With Your Personal Information? | |
|
Why? | | Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do. | |
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What? | | The types of personal information we collect and share depend on the product or service you have with us. This information can include: • Social Security number and account balances • Transaction history and account transactions • Purchase history and wire transfer instructions | |
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How? | | All financial companies need to share customers' personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers' personal information; the reasons Cohen & Steers chooses to share; and whether you can limit this sharing. | |
|
Reasons we can share your personal information | | Does Cohen & Steers share? | | Can you limit this sharing? | |
For our everyday business purposes— such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or reports to credit bureaus | | Yes | | No | |
|
For our marketing purposes— to offer our products and services to you | | Yes | | No | |
|
For joint marketing with other financial companies— | | No | | We don't share | |
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For our affiliates' everyday business purposes— information about your transactions and experiences | | No | | We don't share | |
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For our affiliates' everyday business purposes— information about your creditworthiness | | No | | We don't share | |
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For our affiliates to market to you— | | No | | We don't share | |
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For non-affiliates to market to you— | | No | | We don't share | |
|
Questions? Call 800.330.7348
43
COHEN & STEERS GLOBAL REALTY SHARES, INC.
Cohen & Steers Privacy Policy—(Continued)
Who we are | | | |
Who is providing this notice? | | Cohen & Steers Capital Management, Inc., Cohen & Steers Asia Limited, Cohen & Steers UK Limited, Cohen & Steers Europe SA, Cohen & Steers Securities, LLC, Cohen & Steers Private Funds, and Cohen & Steers Open and Closed-End Funds (collectively, "Cohen & Steers"). | |
|
What we do | | | |
How does Cohen & Steers protect my personal information? | | To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings. We restrict access to your information to those employees who need it to perform their jobs, and also require companies that provide services on our behalf to protect your information. | |
|
How does Cohen & Steers collect my personal information? | | We collect your personal information, for example, when you • Open an account or buy securities from us • Provide account information or give us your contact information • Make deposits or withdrawals from your account We also collect your personal information from other companies. | |
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Why can't I limit all sharing? | | Federal law gives you the right to limit only • sharing for affiliates' everyday business purposes—information about your creditworthiness • affiliates from using your information to market to you • sharing for non-affiliates to market to you State law and individual companies may give you additional rights to limit sharing. | |
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Definitions | | | |
Affiliates | | Companies related by common ownership or control. They can be financial and nonfinancial companies. • Cohen & Steers does not share with affiliates. | |
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Non-affiliates | | Companies not related by common ownership or control. They can be financial and nonfinancial companies. • Cohen & Steers does not share with non-affiliates so they can market to you. | |
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Joint marketing | | A formal agreement between nonaffiliated financial companies that together market financial products or services to you. • Cohen & Steers does not jointly market. | |
|
44
COHEN & STEERS GLOBAL REALTY SHARES, INC.
Cohen & Steers Investment Solutions
COHEN & STEERS GLOBAL REALTY SHARES
• Designed for investors seeking total return, investing primarily in global real estate equity securities
• Symbols: CSFAX, CSFBX*, CSFCX, CSSPX
COHEN & STEERS INSTITUTIONAL REALTY SHARES
• Designed for institutional investors seeking total return, investing primarily in REITs
• Symbol: CSRIX
COHEN & STEERS REALTY INCOME FUND
• Designed for investors seeking total return, investing primarily in real estate securities with an emphasis on both income and capital appreciation
• Symbols: CSEIX, CSBIX*, CSCIX, CSDIX
COHEN & STEERS INTERNATIONAL REALTY FUND
• Designed for investors seeking total return, investing primarily in international real estate securities
• Symbols: IRFAX, IRFCX, IRFIX
COHEN & STEERS
EMERGING MARKETS REAL ESTATE FUND
• Designed for investors seeking total return, investing primarily in emerging market real estate securities
• Symbols: APFAX, APFCX, APFIX
COHEN & STEERS REALTY SHARES
• Designed for investors seeking total return, investing primarily in REITs
• Symbol: CSRSX
COHEN & STEERS
INSTITUTIONAL GLOBAL REALTY SHARES
• Designed for institutional investors seeking total return, investing primarily in global real estate securities
• Symbol: GRSIX
COHEN & STEERS GLOBAL INFRASTRUCTURE FUND
• Designed for investors seeking total return, investing primarily in global infrastructure securities
• Symbols: CSUAX, CSUBX*, CSUCX, CSUIX
COHEN & STEERS DIVIDEND VALUE FUND
• Designed for investors seeking high current income and long-term growth of income and capital appreciation, investing primarily in dividend paying common stocks and preferred stocks
• Symbols: DVFAX, DVFCX, DVFIX
COHEN & STEERS
PREFERRED SECURITIES AND INCOME FUND
• Designed for investors seeking total return (high current income and capital appreciation), investing primarily in preferred and debt securities
• Symbols: CPXAX, CPXCX, CPXIX
COHEN & STEERS REAL ASSETS FUND
• Designed for investors seeking total return and the maximization of real returns during inflationary environments by investing primarily in real assets
• Symbols: RAPAX, RAPCX, RAPIX, RAPRX, RAPZX
Distributed by Cohen & Steers Securities, LLC.
COHEN & STEERS GLOBAL REALTY MAJORS ETF
• Designed for investors who seek a relatively low-cost "passive" approach for investing in a portfolio of real estate equity securities of companies in a specified index
• Symbol: GRI
Distributed by ALPS Distributors, Inc.
ISHARES COHEN & STEERS
REALTY MAJORS INDEX FUND
• Designed for investors who seek a relatively low-cost "passive" approach for investing in a portfolio of real estate equity securities of companies in a specified index
• Symbol: ICF
Distributed by SEI Investments Distribution Co.
* Class B shares are no longer offered except through dividend reinvestment and permitted exchanges by existing Class B shareholders.
Please consider the investment objectives, risks, charges and expenses of the fund carefully before investing. A prospectus containing this and other information can be obtained by calling 800-330-7348 or by visiting cohenandsteers.com. Please read the prospectus carefully before investing.
45
COHEN & STEERS GLOBAL REALTY SHARES, INC.
OFFICERS AND DIRECTORS
Robert H. Steers
Director and co-chairman
Martin Cohen
Director and co-chairman
Michael G. Clark
Director
Bonnie Cohen
Director
George Grossman
Director
Richard E. Kroon
Director
Richard J. Norman
Director
Frank K. Ross
Director
Willard H. Smith Jr.
Director
C. Edward Ward, Jr.
Director
Adam M. Derechin
President and chief executive officer
Joseph M. Harvey
Vice president
Scott Crowe
Vice president
Francis C. Poli
Secretary
James Giallanza
Treasurer and chief financial officer
Lisa D. Phelan
Chief compliance officer
KEY INFORMATION
Investment Advisor
Cohen & Steers Capital Management, Inc.
280 Park Avenue
New York, NY 10017
(212) 832-3232
Fund Co-administrator and Custodian
State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111
Transfer Agent
Boston Financial Data Services, Inc.
30 Dan Road
Canton, MA 02021
800-437-9912
Legal Counsel
Ropes & Gray LLP
1211 Avenue of the Americas
New York, NY 10036
Distributor
Cohen & Steers Securities, LLC
280 Park Avenue
New York, NY 10017
Nasdaq Symbol: Class A—CSFAX
B—CSFBX
C—CSFCX
I— CSSPX
Web site: cohenandsteers.com
This report is authorized for delivery only to shareholders of Cohen & Steers Global Realty Shares, Inc. unless accompanied or preceded bythe delivery of a currently effective prospectus setting forth details of the Fund. Past performance is no guarantee of future results and your investment may be worth more or less at the time you sell.
46
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COHEN & STEERS
GLOBAL REALTY SHARES
280 PARK AVENUE
NEW YORK, NY 10017
Annual Report December 31, 2011
Cohen & Steers Global Realty Shares
CSFAXAR
Item 2. Code of Ethics.
The Registrant has adopted an Amended and Restated Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The Code of Ethics was in effect during the reporting period. The Registrant has not amended the Code of Ethics as described in Form N-CSR during the reporting period. The Registrant has not granted any waiver, including an implicit waiver, from a provision of the Code of Ethics as described in Form N-CSR during the reporting period. A current copy of the Code of Ethics is available on the Registrant’s website at cohenandsteers.com/downloads/code_of_ethics_exec_and_senior.pdf. Upon request, a copy of the Code of Ethics can be made by calling 800-330-7348 or writing to the Secretary of the Registrant, 280 Park Avenue, 10th floor, New York, NY 10017.
Item 3. Audit Committee Financial Expert.
The registrant’s board has determined that Michael G. Clark and Frank K. Ross, each a member of the board’s audit committee, are each an “audit committee financial expert”. Mr. Clark and Mr. Ross are each “independent,” as such term is defined in Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a) – (d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant’s principal accountant were as follows:
| | 2011 | | 2010 | |
Audit Fees | | $ | 47,000 | | $ | 47,000 | |
Audit-Related Fees | | $ | 0 | | $ | 0 | |
Tax Fees | | $ | 6,000 | | $ | 6,000 | |
All Other Fees | | $ | 0 | | $ | 0 | |
Tax fees were billed in connection with the preparation of tax returns, calculation and designation of dividends and other miscellaneous tax services.
(e)(1) The audit committee is required to pre-approve audit and non-audit services performed for the registrant by the principal accountant. The audit committee also is required to pre-approve non-audit services performed by the registrant’s principal accountant for the registrant’s investment advisor and any sub-advisor (not including any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor) and/or to any entity controlling, controlled by or under common control with the registrant’s investment advisor that provides ongoing services to the registrant, if the engagement for services relates directly to the operations and financial reporting of the registrant.
The audit committee may delegate pre-approval authority to one or more of its members who are independent members of the board of directors of the registrant. The member or members to whom such authority is delegated shall report any pre-approval decisions to the audit committee at its next scheduled meeting. The audit committee may not delegate its responsibility to pre-approve services to be performed by the registrant’s principal accountant to the investment advisor.
(e) (2) No services included in (b) – (d) above were approved by the audit committee pursuant to paragraphs (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable.
(g) For the fiscal years ended December 31, 2011 and December 31, 2010, the aggregate fees billed by the registrant’s principal accountant for non-audit services rendered to the registrant and for non-audit services rendered to the registrant’s investment advisor (not including any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor) and/or to any entity controlling, controlled by or under common control with the registrant’s investment advisor that provides ongoing services to the registrant were:
| | 2011 | | 2010 | |
| | | | | |
Registrant | | $ | 6,000 | | $ | 6,000 | |
Investment Advisor | | $ | 20,000 | | $ | 20,000 | |
(h) The registrant’s audit committee considered whether the provision of non-audit services that were rendered to the registrant’s investment advisor (not including any sub-advisor whose role is primarily portfolio management and is subcontracted with or overseen by another investment advisor) and/or to any entity controlling, controlled by or under common control with the registrant’s investment advisor that provides ongoing services to the registrant that were not required to be pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X was compatible with maintaining the principal accountant’s independence.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included in Item 1 above.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the registrant in this Form N-CSR was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, based upon such officers’ evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable.
(a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(b) Certifications of chief executive officer and chief financial officer as required by Rule 30a- 2(b) under the Investment Company Act of 1940.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
COHEN & STEERS GLOBAL REALTY SHARES, INC.
By: | /s/ Adam M. Derechin | |
| Name: Adam M. Derechin |
| Title: President and Chief Executive Officer |
| |
Date: March 2, 2012 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Adam M. Derechin | |
| Name: | Adam M. Derechin |
| Title: | President and Chief Executive Officer |
| | (Principal Executive Officer) |
| |
By: | /s/ James Giallanza | |
| Name: | James Giallanza |
| Title: | Treasurer and Chief Financial Officer |
| | (Principal Financial Officer) |
| |
| |
Date: March 2, 2012 |
| | | |