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 | 811-21902 |
|
Cohen & Steers Institutional Global Realty Shares, Inc. |
(Exact name of registrant as specified in charter) |
|
280 Park Avenue, New York, NY | | 10017 |
(Address of principal executive offices) | | (Zip code) |
|
Adam M. Derechin Cohen & Steers Capital Management, Inc. 280 Park Avenue New York, New York 10017 |
(Name and address of agent for service) |
|
Registrant’s telephone number, including area code: | (212) 832-3232 | |
|
Date of fiscal year end: | December 31 | |
|
Date of reporting period: | December 31, 2010 | |
| | | | | | | | |
Item 1. Reports to Stockholders.
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
To Our Shareholders:
We would like to share with you our report for the year ended December 31, 2010. The net asset value (NAV) at that date was $20.72 per share.
The total returns, including income and change in NAV, for the Fund and its comparative benchmarks were:
| | | Six Months
Ended
December 31, 2010 | | Year Ended
December 31, 2010 | |
| Cohen & Steers Institutional Global Realty Shares | | | 25.39 | % | | | 17.56 | % | |
| FTSE EPRA/NAREIT Developed Real Estate Indexa | | | 25.38 | % | | | 19.63 | % | |
| S&P 500 Indexa | | | 23.27 | % | | | 15.06 | % | |
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.
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 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 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.
Investment Review
Global real estate stocks had strong positive returns in 2010, with increasing capital values and improving operating fundamentals overcoming concerns about high unemployment in the United States, policy tightening in China and a sovereign fiscal crisis in Europe.
a The FTSE EPRA/NAREIT Developed Real Estate Index is an unmanaged portfolio of approximately 282 constituents from 21 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.
1
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
U.S. real estate securities led the rally, with a total return of +28.0% as measured by the FTSE NAREIT Equity REIT Index, fueled by improving fundamentals and a significant compression in cap rates. The year also marked a shift from defense to offense: having recapitalized in 2009, many REITs began to make acquisitions and raise dividends. Investors noticed the impressive value creation and rewarded them for it.
Every U.S. property sector advanced in 2010, led by those poised to gain the most from improving economic conditions. Apartment REITs (which had a total return of +47.0%)b were the top performers, benefiting from tight supply, relatively short leases and reduced interest in home buying. While apartment revenues are generally linked to employment, job growth among younger workers near urban centers—a major renting constituency—showed material improvement.
In the hotel sector (+42.8%), RevPAR (revenue per available room) estimates rose substantially during the year amid strengthening demand and little new supply in the pipeline. Regional mall owners (+34.6%) were also strong, although companies with higher-quality portfolios underperformed, having already experienced significant cap-rate compression in 2009. Office REITs (+18.4%) saw firm demand in core urban markets, supporting a rise in occupancies and rents. However, suburban offices were more vulnerable as high unemployment/low demand continued to weigh on occupancies and rents.
Europe advanced despite debt concerns
European markets experienced significant volatility, as investors became increasingly concerned over sovereign debt problems in several key countries. In May, the International Monetary Fund and European Union announced a rescue package for Greece, along with another fund meant to backstop Spain, Portugal and Italy. Later in the year these authorities turned their sights to Ireland, whose rescue package was tied to deficit reduction.
The U.K. market improved in the second half
The United Kingdom (+4.9%)c struggled early in the period, when there was considerable political and economic uncertainty, although it began to recover as investors welcomed austerity measures aimed at reducing the country's sizable budget deficit. There was some improvement in economic news, including third-quarter GDP growth that, while modest, exceeded expectations.
In France (+14.2), returns were lifted by Unibail-Rodamco, the continent's largest listed property company and owner of high quality shopping centers across Europe. Its share price was buoyed by its operating strength and rent indexation tied to inflation. In October, Unibail paid a special dividend amounting to 15% of its total market capitalization.
Sweden (+48.5%) and Finland (+31.7%) benefited from their sound banking systems and strong export-oriented economies that propelled demand for additional space across all property types, particularly offices. Germany (+32.7%) rallied in response to a strong increase in exports and unemployment that fell to its lowest level in nearly 20 years, indicating that tenant demand should begin stabilizing.
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.
2
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
Hong Kong and Japan led Asia Pacific
Hong Kong and Chinese property companies retreated in the first half of the year amid growing measures by the central governments of both countries to cool their surging residential property markets, but share prices rebounded in the third quarter as expectations grew that the policies were nearing their peak tightness. Hong Kong ended the full period with a total return of +12.2%, further aided by encouraging economic data and indications that interest rates would likely remain low for an extended period. The office sector performed exceptionally well.
Japan (+14.0%) saw an acceleration in performance late in the year. The market overcame the export-threatening impact of a rising yen, which reached its highest level against the U.S. dollar in 15 years, as expectations grew that economic growth in the U.S. would benefit Japan's export sector. Real estate stocks were spurred by news that the Bank of Japan would specifically target J-REIT shares for purchase in an effort to drive down capital costs and spur sector consolidation. Stocks of developers also rallied late in the period as the market began pricing in the ability for more J-REITs to issue equity and purchase developers' properties.
Property stocks in Australia (+0.4%) held up relatively well through June, as investors sought safety in a sound economy with good fundamentals. The property sector trailed in the second half, however, as the country's central bank pressed on with interest-rate increases (from 3.75% to 4.75%), driving fears that a strong Australian dollar could weigh on GDP growth and drive up borrowing costs.
Singapore (+3.9%), which has an export-dependent economy, underperformed amid policy tightening in China that threatened to slow demand for Singapore's products. There was also tightening within the country itself as the government sought to its residential sector.
Global Real Estate Securities Total Returns in Local Currencies
January 1, 2010-December 31, 2010
Country returns are in local currency as measured by the FTSE/NAREIT Developed Real Estate Index.
U.S. returns are measured by the FTSE/NAREIT Equity REIT Index.
3
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
Fund performance
The Fund generated a strong absolute total return but underperformed its benchmark, due in large part to our underweight and stock selection in Japan. We had a cautious view on Japan REITs, based on a clouded economy, poor operating fundamentals, and regulatory obstacles to healthy restructuring activities. This meant we were underweight J-REITs that had sizable gains when the Bank of Japan unexpectedly announced its asset purchase plans. We were overweight property developers with operations in China, based on their impressive long-term growth potential and attractive valuations, but we underperformed when the central government turned more restrictive on macro and property-specific policy than we anticipated.
We were underweight the United States, a top performing country, although beneficial stock selection partly countered the detraction of weight allocation. Our overweight and stock selection in Australia also hindered performance slightly, as did our small out-of-index allocation to the Philippines.
Performance was aided by stock selection in Europe, in particular France, Sweden and Finland. In addition, we were underweight France and overweight Sweden, positions that contributed positively to relative returns. Our out-of-index allocation to Brazil had a sizable gain (+53%), while our stock selection and underweight in Singapore also helped performance.
U.S. dollar-based investors modestly benefited from exchange-rate trends; while the euro declined against the dollar, there was strong appreciation in Asia Pacific currencies.
Investment Outlook
The U.S. economy appears to be heading in the right direction, even though the recovery has been slow. We continue to monitor potential risks, including lower than expected job growth and failure to resolve burgeoning Federal deficit and debt levels.
Fundamentals have bottomed in most U.S. property sectors, in our view, likely leading to healthy dividend increases, more public equity offerings and an increase in acquisition activity. But with cap-rate compression having essentially run its course, further multiple expansion will require cash-flow growth, which we expect to accelerate in 2011. We are also mindful of the need to protect asset values in the face of rising interest rates over the coming year, leading us to favor companies with strong fundamental drivers that we believe can lead to rent increases.
Europe's sovereign debt will be a key issue
We are closely watching the sovereign debt crisis and its effects on the wider cost and availability of capital in Europe. The region's real estate companies made progress in raising capital in 2010, which they should be able to build on in 2011 provided the crisis does not intensify.
The U.K. office market remains our largest area of concentration, especially in London's West End, which has the country's best fundamentals and where skilled operators have demonstrated an ability to create value.
4
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
On the continent, our preference is for pan-European retail owners with healthy balance sheets that can help them play offense. We also like companies located in northern markets, which are relatively insulated from sovereign debt concerns and have seen significant improvements in their economies.
Asia Pacific could see managed growth
We expect fundamentals in Asia Pacific to stay strong as 2011 progresses. Despite policy/monetary measures aimed at cooling its economy, we expect China to remain the primary driving force in the region.
The Hong Kong office sector appears well-positioned to benefit from solid fundamentals. For the residential sector, a supply shortage, favorable interest rates and extra liquidity from quantitative easing suggest upside potential. This comes with some risks: if home prices rise too quickly, the government will face public pressure to enact further corrective policies.
We retain a cautious view of Japan, as tenants continue to seek rent and space reductions, and new office supply is due to come on the market next year. There are some positive signs, however: Homes are more affordable, low office rents are attracting Grade A tenants, debt is more available and capital values are showing stronger signals of a bottom.
While Australia's higher interest rates appear to have tempered enthusiasm for residential stocks, we believe residential fundamentals should continue to improve in 2011, aided by wage and employment growth. In our view, the bank's tightening policy highlights the relative strength of the Australian economy in being able to withstand rate increases meant to stave off inflationary pressures. We expect the Singapore economy to continue its above-average growth trajectory. Occupancy levels and new demand in office are accelerating, while rents have bottomed and are now rising rapidly.
Our broad focus remains on companies with the best potential for internal growth that can also capitalize on the emergence of external growth opportunities amid improving real estate fundamentals.
5
COHEN & STEERS INSTITUTIONAL 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 | | CHARLES J. MCKINLEY | | LUKE SULLIVAN | |
|
| Portfolio Manager | | Portfolio Manager | | Portfolio Manager | |
|
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.
6
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
Performance Review (Unaudited)
Growth of a $3,000,000 Investment
Average Annual Total Returns—For Periods Ended December 31, 2010
| | | 1 Year | | Since Inceptionb | |
| Fund | | | 17.56 | % | | | –0.34 | % | |
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 the periods presented above, the advisor waived fees and/or reimbursed expenses. Without this arrangement performance would have been lower.
The gross and net expense ratios were 1.04% and 1.00%, respectively, as disclosed in the May 1, 2010 prospectus. The advisor has contractually agreed to reimburse the Fund so that its annual operating expenses do not exceed 1.00%. This commitment will remain in place for the life of the Fund.
a The comparative indices 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 Inception date of August 10, 2006.
7
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
Expense Example (Unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs including management 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, 2010—December 31, 2010.
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. 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.
| | | Beginning
Account Value
July 1, 2010 | | Ending
Account Value
December 31, 2010 | | Expenses Paid
During Perioda
July 1, 2010–
December 31, 2010 | |
| Actual (25.39% return) | | $ | 1,000.00 | | | $ | 1,253.90 | | | $ | 5.68 | | |
| Hypothetical (5% annual return before expenses) | | $ | 1,000.00 | | | $ | 1,020.16 | | | $ | 5.09 | | |
a Expenses are equal to the Fund's annualized expense ratio of 1.00% multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). If the Fund had borne all of its expenses that were assumed by the advisor, the annualized expense ratio would have been 1.03%.
8
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
DECEMBER 31, 2010
Top Ten Holdings
(Unaudited)
| Security | | Value | | % of
Net
Assets | |
| Simon Property Group | | $ | 29,162,409 | | | | 5.5 | % | |
| Sun Hung Kai Properties Ltd. | | | 22,517,888 | | | | 4.3 | | |
| Mitsui Fudosan Co., Ltd. | | | 18,631,442 | | | | 3.5 | | |
| Equity Residential | | | 16,512,775 | | | | 3.1 | | |
| Unibail-Rodamco | | | 13,531,389 | | | | 2.6 | | |
| Stockland | | | 13,437,434 | | | | 2.6 | | |
| Ventas | | | 12,315,534 | | | | 2.3 | | |
| Hongkong Land Holdings Ltd. (USD) | | | 12,213,352 | | | | 2.3 | | |
| Public Storage | | | 11,598,594 | | | | 2.2 | | |
| ProLogis | | | 10,939,137 | | | | 2.1 | | |
Country Breakdown
(Based on Net Assets)
(Unaudited)
9
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS
December 31, 2010
| | | | | Number
of Shares | |
Value | |
| COMMON STOCK | | 96.5% | | | | | | | | | |
| AUSTRALIA | | 8.2% | | | | | | | | | |
| DIVERSIFIED | | 5.3% | | | | | | | | | |
| BGP Holdings PLC (EUR)a,b,c | | | | | 7,741,744 | | | $ | 0 | | |
| FKP Property Group | | | | | 2,413,478 | | | | 2,110,573 | | |
| GPT Group | | | | | 2,385,101 | | | | 7,172,077 | | |
| Mirvac Group | | | | | 3,965,729 | | | | 4,968,782 | | |
| Stockland | | | | | 3,649,413 | | | | 13,437,434 | | |
| | | | | | | | | | | | | | 27,688,866 | | |
| INDUSTRIAL | | 1.2% | | | | | | | | | |
| Goodman Group | | | | | 9,750,394 | | | | 6,482,259 | | |
| RETAIL | | 1.7% | | | | | | | | | |
| Westfield Group | | | | | 912,553 | | | | 8,941,583 | | |
| TOTAL AUSTRALIA | | | | | | | | | 43,112,708 | | |
| BRAZIL | | 2.8% | | | | | | | | | |
| OFFICE | | 1.0% | | | | | | | | | |
| BR Properties SA | | | | | 468,940 | | | | 5,130,091 | | |
| RESIDENTIAL | | 0.7% | | | | | | | | | |
| MRV Engenharia e Participacoes SA | | | | | 379,571 | | | | 3,569,339 | | |
| RETAIL | | 1.1% | | | | | | | | | |
| BR Malls Participacoes SA | | | | | 572,934 | | | | 5,901,910 | | |
| TOTAL BRAZIL | | | | | | | 14,601,340 | | |
| CANADA | | 3.2% | | | | | | | | | |
| DIVERSIFIED | | 0.5% | | | | | | | | | |
| Dundee Real Estate Investment Trust, 144Ad | | | | | 87,335 | | | | 2,652,637 | | |
| RESIDENTIAL | | 0.7% | | | | | | | | | |
| Boardwalk REIT | | | | | 89,932 | | | | 3,730,962 | | |
| RETAIL | | 2.0% | | | | | | | | | |
| Primaris Retail REIT | | | | | 281,651 | | | | 5,535,010 | | |
| RioCan REIT | | | | | 229,912 | | | | 5,087,060 | | |
| | | | | | | | | | | | 10,622,070 | | |
| TOTAL CANADA | | | | | | | | | 17,005,669 | | |
See accompanying notes to financial statements.
10
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2010
| | | | | Number
of Shares | |
Value | |
| FINLAND | | 1.3% | | | | | | | | | |
| DIVERSIFIED | | | | | | | | | | | |
| Sponda Oyj | | | | | 1,326,163 | | | $ | 6,875,948 | | |
| FRANCE | | 2.6% | | | | | | | | | |
| DIVERSIFIED | | | | | | | | | | | |
| Unibail-Rodamco | | | | | 68,419 | | | | 13,531,389 | | |
| GERMANY | | 0.6% | | | | | | | | | |
| RESIDENTIAL | | | | | | | | | | | |
| Deutsche Wohnen AGc | | | | | 208,742 | | | | 2,928,890 | | |
| HONG KONG | | 18.3% | | | | | | | | | |
| DIVERSIFIED | | 13.5% | | | | | | | | | |
| Agile Property Holdings Ltd. | | | | | 3,573,000 | | | | 5,286,319 | | |
| Glorious Property Holdings Ltd. | | | | | 6,725,689 | | | | 2,293,006 | | |
| Guangzhou R&F Properties Co., Ltd. Class H | | | | | 1,758,200 | | | | 2,519,857 | | |
| Hang Lung Properties Ltd. | | | | | 1,579,600 | | | | 7,346,457 | | |
| Kerry Properties Ltd. | | | | | 507,000 | | | | 2,628,667 | | |
| KWG Property Holding Ltd. | | | | | 4,634,160 | | | | 3,577,213 | | |
| New World Development Ltd. | | | | | 2,689,161 | | | | 5,058,092 | | |
| Shimao Property Holdings Ltd. | | | | | 3,246,504 | | | | 4,903,504 | | |
| Sino Land Co., Ltd. | | | | | 1,163,374 | | | | 2,179,231 | | |
| Sun Hung Kai Properties Ltd. | | | | | 1,361,019 | | | | 22,517,888 | | |
| Swire Pacific Ltd. Class A | | | | | 237,500 | | | | 3,904,963 | | |
| Wharf Holdings Ltd. | | | | | 1,171,135 | | | | 9,010,122 | | |
| | | | | | | | | | | | 71,225,319 | | |
| HOTEL | | 0.4% | | | | | | | | | |
| Shangri-La Asia Ltd. | | | | | 791,785 | | | | 2,149,375 | | |
| OFFICE | | 2.3% | | | | | | | | | |
| Hongkong Land Holdings Ltd. (USD) | | | | | 1,691,600 | | | | 12,213,352 | | |
| RESIDENTIAL | | 2.1% | | | | | | | | | |
| China Overseas Land & Investment Ltd. | | | | | 5,881,360 | | | | 10,895,891 | | |
| TOTAL HONG KONG | | | | | | | 96,483,937 | | |
See accompanying notes to financial statements.
11
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2010
| | | | | Number
of Shares | |
Value | |
| INDIA | | | 0.4% | | | | | | | | | | |
| DIVERSIFIED | | | | | | | | | | | | | |
| DLF Ltd. | | | | | 177,288 | | | $ | 1,155,554 | | |
| Phoenix Mills Ltd. | | | | | 167,636 | | | | 828,901 | | |
| | | | | | | | | | | | 1,984,455 | | |
| JAPAN | | | 5.3% | | | | | | | | | | |
| DIVERSIFIED | | | | | | | | | | | | | |
| Mitsubishi Estate Co., Ltd. | | | | | 413,000 | | | | 7,660,771 | | |
| Mitsui Fudosan Co., Ltd. | | | | | 934,334 | | | | 18,631,442 | | |
| Nomura Real Estate Holdings | | | | | 93,900 | | | | 1,710,532 | | |
| | | | | | | | | | | | 28,002,745 | | |
| NETHERLANDS | | | 0.9% | | | | | | | | | | |
| RETAIL | | | | | | | | | | | | | |
| Corio NV | | | | | 77,468 | | | | 4,970,536 | | |
| NORWAY | | | 0.5% | | | | | | | | | | |
| OFFICE | | | | | | | | | | | | | |
| Norwegian Property ASAc | | | | | 1,568,728 | | | | 2,782,553 | | |
| PHILIPPINES | | | 1.1% | | | | | | | | | | |
| RETAIL | | | | | | | | | | | | | |
| SM Prime Holdings | | | | | 21,631,344 | | | | 5,618,916 | | |
| SINGAPORE | | | 6.0% | | | | | | | | | | |
| DIVERSIFIED | | | 2.6% | | | | | | | | | | |
| CapitaLand Ltd. | | | | | 2,553,000 | | | | 7,380,395 | | |
| Keppel Land Ltd. | | | | | 1,728,045 | | | | 6,463,253 | | |
| | | | | | | | | | | | 13,843,648 | | |
| HOTEL | | | 1.0% | | | | | | | | | | |
| City Developments Ltd. | | | | | 506,000 | | | | 4,952,164 | | |
| INDUSTRIAL | | | 0.7% | | | | | | | | | | |
| Ascendas REIT | | | | | 2,298,000 | | | | 3,706,596 | | |
| OFFICE | | | 1.0% | | | | | | | | | | |
| CapitaCommercial Trust | | | | | 4,543,000 | | | | 5,309,931 | | |
See accompanying notes to financial statements.
12
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2010
| | | | | Number
of Shares | |
Value | |
| RETAIL | | | 0.7% | | | | | | | | | | |
| CapitaMalls Asia Ltd. | | | | | 2,466,000 | | | $ | 3,727,775 | | |
| TOTAL SINGAPORE | | | | | | | 31,540,114 | | |
| SWEDEN | | | 1.9% | | | | | | | | | | |
| DIVERSIFIED | | | | | | | | | | | | | |
| Castellum AB | | | | | 198,506 | | | | 2,702,077 | | |
| Fabege AB | | | | | 611,315 | | | | 7,139,651 | | |
| | | | | | | | | | | | 9,841,728 | | |
| UNITED KINGDOM | | | 3.8% | | | | | | | | | | |
| DIVERSIFIED | | | 2.4% | | | | | | | | | | |
| British Land Co., PLC | | | | | 758,348 | | | | 6,201,372 | | |
| Hammerson PLC | | | | | 965,722 | | | | 6,281,599 | | |
| | | | | | | | | | | | 12,482,971 | | |
| INDUSTRIAL | | | 0.7% | | | | | | | | | | |
| Segro PLC | | | | | 828,282 | | | | 3,698,494 | | |
| OFFICE | | | 0.7% | | | | | | | | | | |
| Derwent London PLC | | | | | 698 | | | | 16,988 | | |
| Great Portland Estates PLC | | | | | 698,596 | | | | 3,929,763 | | |
| | | | | | | | | | | | 3,946,751 | | |
| TOTAL UNITED KINGDOM | | | | | | | 20,128,216 | | |
| UNITED STATES | | | 39.6% | | | | | | | | | | |
| DIVERSIFIED | | | 1.6% | | | | | | | | | | |
| Duke Realty Corp. | | | | | 93,513 | | | | 1,165,172 | | |
| Forest City Enterprisesc | | | | | 444,882 | | | | 7,425,081 | | |
| | | | | | | | | | | | 8,590,253 | | |
| HEALTH CARE | | | 2.9% | | | | | | | | | | |
| Brookdale Senior Livingc | | | | | 138,363 | | | | 2,962,352 | | |
| Ventas | | | | | 234,671 | | | | 12,315,534 | | |
| | | | | | | | | | | | 15,277,886 | | |
See accompanying notes to financial statements.
13
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2010
| | | | | Number
of Shares | |
Value | |
| HOTEL | | | 4.7% | | | | | | | | | | |
| Hersha Hospitality Trust | | | | | 469,898 | | | $ | 3,101,327 | | |
| Host Hotels & Resorts | | | | | 576,105 | | | | 10,294,996 | | |
| Hyatt Hotels Corp., Class Ac | | | | | 121,022 | | | | 5,537,967 | | |
| Sunstone Hotel Investorsc | | | | | 550,194 | | | | 5,683,504 | | |
| | | | | | | | | | | | 24,617,794 | | |
| INDUSTRIAL | | | 2.1% | | | | | | | | | | |
| ProLogis | | | | | 757,558 | | | | 10,939,137 | | |
| OFFICE | | | 3.8% | | | | | | | | | | |
| Boston Properties | | | | | 59,728 | | | | 5,142,580 | | |
| Liberty Property Trust | | | | | 206,002 | | | | 6,575,584 | | |
| SL Green Realty Corp. | | | | | 118,284 | | | | 7,985,353 | | |
| | | | | | | | | | | | 19,703,517 | | |
| OFFICE/INDUSTRIAL | | | 0.5% | | | | | | | | | | |
| PS Business Parks | | | | | 46,236 | | | | 2,576,270 | | |
| RESIDENTIAL—APARTMENT | | | 8.7% | | | | | | | | | | |
| Apartment Investment & Management Co. | | | | | 176,736 | | | | 4,566,858 | | |
| AvalonBay Communities | | | | | 89,371 | | | | 10,058,706 | | |
| BRE Properties | | | | | 37,755 | | | | 1,642,343 | | |
| Equity Residential | | | | | 317,859 | | | | 16,512,775 | | |
| Post Properties | | | | | 248,278 | | | | 9,012,491 | | |
| UDR | | | | | 157,396 | | | | 3,701,954 | | |
| | | | | | | | | | | | 45,495,127 | | |
| SELF STORAGE | | | 2.2% | | | | | | | | | | |
| Public Storage | | | | | 114,362 | | | | 11,598,594 | | |
| SHOPPING CENTER | | | 12.7% | | | | | | | | | | |
| COMMUNITY CENTER | | | 4.0% | | | | | | | | | | |
| Developers Diversified Realty Corp. | | | | | 631,628 | | | | 8,899,639 | | |
| Kimco Realty Corp. | | | | | 518,332 | | | | 9,350,709 | | |
| Weingarten Realty Investors | | | | | 123,023 | | | | 2,923,026 | | |
| | | | | | | | | | | | 21,173,374 | | |
See accompanying notes to financial statements.
14
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2010
| | | | | Number
of Shares | |
Value | |
| REGIONAL MALL | | | 8.7% | | | | | | | | | | |
| CBL & Associates Properties | | | | | 297,759 | | | $ | 5,210,783 | | |
| General Growth Properties | | | | | 457,788 | | | | 7,086,558 | | |
| Macerich Co. | | | | | 91,774 | | | | 4,347,335 | | |
| Simon Property Group | | | | | 293,119 | | | | 29,162,409 | | |
| | | | | | | | | | | | 45,807,085 | | |
| TOTAL SHOPPING CENTER | | | | | | | 66,980,459 | | |
| SPECIALTY | | | 0.4% | | | | | | | | | | |
| DuPont Fabros Technology | | | | | 109,234 | | | | 2,323,407 | | |
| TOTAL UNITED STATES | | | | | | | | | 208,102,444 | | |
| TOTAL COMMON STOCK (Identified cost—$407,567,762) | | | | | | | | | 507,511,588 | | |
| | | | | Number
of Warrants | | | |
| WARRANTS | | | 0.0% | | | | | | | | | | |
| HONG KONG | | | | | | | | | | | | | |
Henderson Land Development, Ltd., expire 6/1/11c
(Identified cost—$0) | | | | | 83,122 | | | | 19,249 | | |
| | | | | Number
of Shares | | | |
| SHORT-TERM INVESTMENTS | | | 4.1% | | | | | | | | | | |
| MONEY MARKET FUNDS | | | | | | | | | | | | | |
| Federated Government Obligations Fund, 0.02%e | | | | | 10,600,000 | | | | 10,600,000 | | |
| State Street Institutional Liquid Reserves Fund, 0.18%e | | | | | 10,600,000 | | | | 10,600,000 | | |
TOTAL SHORT-TERM INVESTMENTS
(Identified cost—$21,200,000) | | | | | | | 21,200,000 | | |
| TOTAL INVESTMENTS (Identified cost—$428,767,762) | | | 100.6 | % | | | | | | | 528,730,837 | | |
| LIABILITIES IN EXCESS OF OTHER ASSETS | | | (0.6 | ) | | | | | | | (2,967,362 | ) | |
NET ASSETS (Equivalent to $20.72 per share based on 25,374,659
shares of common stock outstanding) | | | 100.0 | % | | | | | | $ | 525,763,475 | | |
See accompanying notes to financial statements.
15
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
SCHEDULE OF INVESTMENTS—(Continued)
December 31, 2010
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 net assets of the Fund.
c Non-income producing security.
d Resale is restricted to qualified institutional investors. Aggregate holdings equal 0.5% 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.
16
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
STATEMENT OF ASSETS AND LIABILITIES
December 31, 2010
| ASSETS: | |
| Investments in securities, at value (Identified cost—$428,767,762) | | $ | 528,730,837 | | |
| Cash | | | 87,734 | | |
| Foreign currency, at value (Identified cost—$28,201) | | | 28,228 | | |
| Receivable for: | |
| Investment securities sold | | | 4,711,712 | | |
| Dividends | | | 1,301,396 | | |
| Fund shares sold | | | 378,828 | | |
| Total Assets | | | 535,238,735 | | |
| LIABILITIES: | |
| Payable for: | |
| Investment securities purchased | | | 9,005,258 | | |
| Investment management fees | | | 404,022 | | |
| Fund shares redeemed | | | 53,697 | | |
| Directors' fees | | | 764 | | |
| Other liabilities | | | 11,519 | | |
| Total Liabilities | | | 9,475,260 | | |
| NET ASSETS applicable to 25,374,659 shares of $0.001 par value of common stock outstanding | | $ | 525,763,475 | | |
| NET ASSET VALUE PER SHARE: | |
| ($525,763,475 ÷ 25,374,659 shares outstanding) | | $ | 20.72 | | |
| NET ASSETS consist of: | |
| Paid-in capital | | $ | 596,208,121 | | |
| Dividends in excess of net investment income | | | (14,837,368 | ) | |
| Accumulated net realized loss | | | (155,575,884 | ) | |
| Net unrealized appreciation | | | 99,968,606 | | |
| | | $ | 525,763,475 | | |
See accompanying notes to financial statements.
17
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
STATEMENT OF OPERATIONS
For the Year Ended December 31, 2010
| Investment Income: | |
| Dividend income (net of $521,609 of foreign withholding tax) | | $ | 12,968,696 | | |
| Expenses: | |
| Investment management fees | | | 4,189,495 | | |
| Registration and filing fees | | | 40,044 | | |
| Directors' fees and expenses | | | 39,925 | | |
| Line of credit fees | | | 19,535 | | |
| Miscellaneous | | | 5,338 | | |
| Total Expenses | | | 4,294,337 | | |
| Reduction of Expenses (See Note 2) | | | (104,842 | ) | |
| Net Expenses | | | 4,189,495 | | |
| Net Investment Income | | | 8,779,201 | | |
| Net Realized and Unrealized Gain (Loss): | |
| Net realized gain (loss) on: | |
| Investments | | | 29,755,408 | | |
| Foreign currency transactions | | | (332,960 | ) | |
| Net realized gain | | | 29,422,448 | | |
| Net change in unrealized appreciation (depreciation) on: | |
| Investments | | | 37,428,426 | | |
| Foreign currency translations | | | 6,480 | | |
| Net change in unrealized appreciation (depreciation) | | | 37,434,906 | | |
| Net realized and unrealized gain | | | 66,857,354 | | |
| Net Increase in Net Assets Resulting from Operations | | $ | 75,636,555 | | |
See accompanying notes to financial statements.
18
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
STATEMENT OF CHANGES IN NET ASSETS
| | | For the
Year Ended
December 31, 2010 | | For the
Year Ended
December 31, 2009 | |
| Change in Net Assets: | |
| From Operations: | |
| Net investment income | | $ | 8,779,201 | | | $ | 6,471,898 | | |
| Net realized gain (loss) | | | 29,422,448 | | | | (26,183,195 | ) | |
| Net change in unrealized appreciation (depreciation) | | | 37,434,906 | | | | 113,220,023 | | |
Net increase in net assets resulting
from operations | | | 75,636,555 | | | | 93,508,726 | | |
| Dividends to Shareholders from Net Investment Income | | | (22,530,225 | ) | | | (21,339,636 | ) | |
| Capital Stock Transactions: | |
| Increase in net assets from Fund share transactions | | | 121,964,815 | | | | 44,957,609 | | |
| Total increase in net assets | | | 175,071,145 | | | | 117,126,699 | | |
| Net Assets: | |
| Beginning of year | | | 350,692,330 | | | | 233,565,631 | | |
| End of yeara | | $ | 525,763,475 | | | $ | 350,692,330 | | |
a Includes dividends in excess of net investment income of $14,837,368 and $8,768,585, respectively.
See accompanying notes to financial statements.
19
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
FINANCIAL HIGHLIGHTS
The following table includes selected data for a share outstanding throughout each period and other performance information derived from the financial statements. It should be read in conjunction with the financial statements and notes thereto.
| | | For the Year Ended December 31, | | For the Period
August 10, 2006a
through | |
| Per Share Operating Performance: | | 2010 | | 2009 | | 2008 | | 2007 | | December 31, 2006 | |
| Net asset value, beginning of period | | $ | 18.51 | | | $ | 14.23 | | | $ | 25.10 | | | $ | 29.57 | | | $ | 25.00 | | |
| Income from investment operations: | |
| Net investment income | | | 0.84 | b | | | 0.76 | | | | 0.55 | | | | 0.49 | c | | | 0.12 | | |
| Net realized and unrealized gain (loss) | | | 2.33 | | | | 4.65 | | | | (11.02 | ) | | | (4.12 | ) | | | 4.62 | | |
Total income (loss) from investment
operations | | | 3.17 | | | | 5.41 | | | | (10.47 | ) | | | (3.63 | ) | | | 4.74 | | |
| Less dividends and distributions to shareholders from: | |
| Net investment income | | | (0.96 | ) | | | (1.13 | ) | | | (0.35 | ) | | | (0.73 | ) | | | (0.16 | ) | |
| Net realized gain | | | — | | | | — | | | | — | | | | (0.01 | ) | | | (0.01 | ) | |
| Tax return of capital | | | — | | | | — | | | | (0.05 | ) | | | (0.10 | ) | | | — | | |
Total dividends and distributions to
shareholders | | | (0.96 | ) | | | (1.13 | ) | | | (0.40 | ) | | | (0.84 | ) | | | (0.17 | ) | |
| Net increase (decrease) in net asset value | | | 2.21 | | | | 4.28 | | | | (10.87 | ) | | | (4.47 | ) | | | 4.57 | | |
| Net asset value, end of period | | $ | 20.72 | | | $ | 18.51 | | | $ | 14.23 | | | $ | 25.10 | | | $ | 29.57 | | |
| Total investment return | | | 17.56 | % | | | 38.68 | % | | | –42.05 | % | | | –12.35 | % | | | 18.98 | %d | |
| Ratios/Supplemental Data: | |
| Net assets, end of period (in millions) | | $ | 525.8 | | | $ | 350.7 | | | $ | 233.6 | | | $ | 280.2 | | | $ | 81.4 | | |
Ratio of expenses to average daily net assets
(before expense reduction) | | | 1.03 | % | | | 1.04 | % | | | 1.04 | % | | | 1.06 | % | | | 1.47 | %e | |
Ratio of expenses to average daily net assets
(net of expense reduction) | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % | | | 1.00 | %e | |
Ratio of net investment income to average daily
net assets (before expense reduction) | | | 2.07 | % | | | 2.38 | % | | | 2.36 | % | | | 1.62 | % | | | 1.73 | %e | |
Ratio of net investment income to average daily
net assets (net of expense reduction) | | | 2.10 | % | | | 2.43 | % | | | 2.40 | % | | | 1.68 | % | | | 2.20 | %e | |
| Portfolio turnover rate | | | 111 | % | | | 186 | % | | | 126 | % | | | 67 | % | | | 8 | %d | |
a Commencement of operations.
b 20.6% of gross income was attributable to dividends paid by Unibail-Rodamco.
c 6.2% of net investment income was attributable to a special dividend paid by Boston Properties, Inc.
d Not annualized.
e Annualized.
See accompanying notes to financial statements.
20
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS
Note 1. Significant Accounting Policies
Cohen & Steers Institutional Global Realty Shares, Inc. (the Fund) was incorporated under the laws of the State of Maryland on May 11, 2006 and is registered under the Investment Company Act of 1940, as amended, as a nondiversified, open-end management investment company. The Fund's investment objective is total return.
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 for the 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 for the day, or if no asked price is available, at the bid price. However, certain fixed-income securities may be valued on the basis of prices provided by a pricing service when such prices are believed by the Board of Directors to reflect the fair market value of such securities.
Securities for which market prices are unavailable, or securities for which the advisor determines that the bid and/or asked price does not reflect market value, 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 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
21
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
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.
When foreign fair value pricing procedures are utilized, securities are categorized as Level 2. The utilization of these procedures results in transfers between Level 1 and Level 2. The following is a summary of the inputs used as of December 31, 2010 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—Canada—Diversified | | $ | 2,652,637 | | | $ | — | | | $ | 2,652,637 | | | | — | | |
| Common Stock—All Other | | | 504,858,951 | | | | 504,858,951 | | | | — | | | | — | | |
| Warrants | | | 19,249 | | | | 19,249 | | | | — | | | | — | | |
| Money Market Funds | | | 21,200,000 | | | | — | | | | 21,200,000 | | | | — | | |
| Total Investments | | $ | 528,730,837 | | | $ | 504,878,200 | | | $ | 23,852,637 | | | | — | | |
* BGP Holdings PLC was acquired via a spinoff and has been fair valued at zero pursuant to the Fund's fair value procedure and classified as a Level 3 security. Its likelihood of having value in the future is remote.
22
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
Security Transactions and Investment Income: 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.
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 are declared and paid semi-annually. Net realized capital gains, unless offset by any available capital loss carryforward, are 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.
Distributions paid by the Fund are subject to recharacterization for tax purposes.
23
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
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. 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, 2010, no 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 limita tions have not expired are subject to examination by the Internal Revenue Service, state departments of revenue and by foreign tax authorities.
In December 2010, the Regulated Investment Company Modernization Act of 2010 (the Act) was enacted. The Act contained federal income tax law changes affecting mutual funds and their shareholders. The provisions of the Act were evaluated and its implementation is not expected to have a material impact to the Fund or the Fund's shareholders, other than the impact on capital loss carryforwards as discussed in Note 4.
Note 2. Investment Management Agreement and Other Transactions with Affiliates
Investment Management Fees: The advisor serves as the Fund's investment advisor pursuant to an investment management agreement (the investment management agreement). Under the terms of the investment management agreement, the advisor provides the Fund with the 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 Fund's 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 1.00% of the average daily net assets of the Fund.
The advisor is also responsible, under the investment management agreement, for the performance of certain administrative functions for the Fund. Additionally, the advisor pays all expenses of the Fund except for brokerage fees, taxes, interest, fees and expenses of the Fund's independent directors (as well as their independent counsel and other independent consultants), trade organization membership dues, federal and state registration fees and extraordinary expenses.
The advisor has contractually agreed to reimburse the Fund so that its total annual operating expenses do not exceed 1.00% of the average daily net assets. This commitment will remain in place for the life of the Fund.
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 agreement, the advisor (not the Fund) pays the subadvisors. The advisor allocates
24
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
50% of the investment management 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.
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 affiliated directors and officers except for the Chief Compliance Officer, who received $6,737 from the Fund for the year ended December 31, 2010.
Note 3. Purchases and Sales of Securities
Purchases and sales of securities, excluding short-term investments, for the year ended December 31, 2010, totaled $549,545,111 and $451,673,495, respectively.
Note 4. Income Tax Information
The tax character of dividends paid was as follows:
| | | For the Year
Ended December 31, | |
| | | 2010 | | 2009 | |
| Ordinary income | | $ | 22,530,225 | | | $ | 21,339,636 | | |
As of December 31, 2010, the tax-basis components of accumulated earnings and the federal tax cost were as follows:
| Cost for federal income tax purposes | | $ | 475,715,873 | | |
| Gross unrealized appreciation | | $ | 56,967,247 | | |
| Gross unrealized depreciation | | | (3,952,283 | ) | |
| Net unrealized appreciation | | $ | 53,014,964 | | |
| Undistributed ordinary income | | $ | 52,112 | | |
As of December 31, 2010, the Fund had a net capital loss carryforward of $123,831,960, of which $53,491,349 will expire on December 31, 2016 and $70,340,611 will expire on December 31, 2017. This carryforward may be used to offset future capital gains to the extent provided by regulations. Federal tax rules limit the Fund's use of these capital loss carryforwards. The Regulated Investment Company Modernization Act of 2010 (the "Act") requires that capital loss carryforwards incurred after the effective date of the Act be used before those previously incurred, thereby increasing the chances that all or a portion of these losses will not be able to be utilized prior to their expiration.
During the year ended December 31, 2010, the Fund utilized net capital loss carryforwards of $12,169,060.
25
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
As of December 31, 2010, 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 and sales of passive foreign investment companies. To reflect reclassifications arising from the permanent differences, accumulated net realized loss was charged $7,682,241 and dividends in excess of net investment income was credited $7,682,241. Net assets were not affected by this reclassification.
Note 5. Capital Stock
The Fund is authorized to issue 100 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, 2010 | | For the
Year Ended
December 31, 2009 | |
| | | Shares | | Amount | | Shares | | Amount | |
| Sold | | | 8,893,524 | | | $ | 168,909,147 | | | | 7,562,051 | | | $ | 122,112,180 | | |
| Issued as reinvestment of dividends | | | 1,055,680 | | | | 20,330,946 | | | | 1,038,922 | | | | 18,080,603 | | |
| Redeemed | | | (3,522,929 | ) | | | (67,275,278 | ) | | | (6,060,548 | ) | | | (95,235,174 | ) | |
| Net increase | | | 6,426,275 | | | $ | 121,964,815 | | | | 2,540,425 | | | $ | 44,957,609 | | |
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 28, 2011. The Fund pays a commitment fee of 0.15% per annum on its proportionate share of the unused portion of the credit agreement. (Effective January 28, 2011, the credit agreement was subsequently renewed under similar terms and expires January 27, 2012. The commitment fee was reduced to 0.125%).
During the year ended December 31, 2010, 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
26
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
NOTES TO FINANCIAL STATEMENTS—(Continued)
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. Subsequent Events
Events and transactions occurring after December 31, 2010 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.
27
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of
Cohen & Steers Institutional 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 Institutional Global Realty Shares, Inc. (the "Fund") at December 31, 2010, 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 periods presented, 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 the se 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, 2010 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
February 16, 2011
28
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
TAX INFORMATION—2010 (Unaudited)
Pursuant to the Jobs and Growth Relief Reconciliation Act of 2003, the Fund designates qualified dividend income of $5,167,988.
The Fund has elected, pursuant to section 853 of the Internal Revenue Code, to pass through foreign taxes of $467,769. The Fund generated net foreign source income of $10,407,859 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 (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 distributions paid by the Fund 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. 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.
29
COHEN & STEERS INSTITUTIONAL 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, sub-administrator, custodian and transfer agent. The management of the Fund's day-to-day operations is delegated to its officers, the advisor, administrator and sub-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: 57 | | 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. | | | 18 | | | 1991 to present | |
|
Martin Cohen5
Age: 62 | | 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. | | | 18 | | | 1991 to present | |
|
(table continued on next page)
30
COHEN & STEERS INSTITUTIONAL 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 | |
| Disinterested Directors | |
|
Bonnie Cohen5
Age: 68 | | Director | | Until next election of directors | | Consultant. Board Member, United States Department of Defense Business Board since 2010; Board Member, Global Heritage Fund since 2002; Advisory Board member, Posse Foundation since 2004; Trustee, H. Rubenstein Foundation since 1996; Trustee, District of Columbia Public Libraries since 2004; Board member Woods Hole Research Center since 2011; Board member Teluride Mountain Film Festival since 2010; Board member, Washington National Opera since 2007; 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. | | | 18 | | | 2001 to present | |
|
George Grossman
Age: 57 | | Director | | Until next election of directors | | Attorney-at-law | | | 18 | | | 1993 to present | |
|
(table continued on next page)
31
COHEN & STEERS INSTITUTIONAL 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 E. Kroon
Age: 68 | | Director | | Until next election of directors | | Member of Investment Committee, Monmouth University since 2004; Former Director, AmComp (workers' compensation insurance company) from 1996 to 2003 and from 2004 to 2005; Former Director, Finlay Enterprises (fine jewelry retailing) from 2003 to 2006; Former Director, Prominence Networks (telecom equipment) from 2003 to 2005; 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. | | | 18 | | | 2004 to present | |
|
Richard J. Norman
Age: 67 | | 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. | | | 18 | | | 2001 to present | |
|
(table continued on next page)
32
COHEN & STEERS INSTITUTIONAL 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 | |
Frank K. Ross
Age: 67 | | 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. Former Board Member of NCRIC, Inc. from 2004 to 2005. Formerly, Midatlantic Area Managing Partner for Assurance Services at KPMG LLP and Managing Partner of its Washington, DC offices from 1977 to 2003. | | | 18 | | | 2004 to present | |
|
Willard H. Smith Jr.
Age: 74 | | 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. | | | 18 | | | 1996 to present | |
|
C. Edward Ward Jr.
Age: 64 | | 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. | | | 18 | | | 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 the investment manager (Interested Directors).
5 Martin Cohen and Bonnie Cohen are not related.
33
COHEN & STEERS INSTITUTIONAL 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: 46 | | 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: 47 | | 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 | |
|
Scott Crowe
Age: 33 | | 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 | |
|
Francis C. Poli
Age: 48 | | 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 | |
|
James Giallanza
Age: 44 | | 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 | |
|
Lisa D. Phelan
Age: 42 | | 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.
34
COHEN & STEERS INSTITUTIONAL 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 GLOBAL REALTY SHARES
• Designed for institutional investors seeking total return, investing primarily in global real estate securities
• Symbol: GRSIX
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
ASIA PACIFIC REALTY SHARES
• Designed for investors seeking total return, investing primarily in real estate securities located in the Asia Pacific region
• Symbols: APFAX, APFCX, APFIX
COHEN & STEERS REALTY SHARES
• Designed for investors seeking total return, investing primarily in REITs
• Symbol: CSRSX
COHEN & STEERS
INSTITUTIONAL REALTY SHARES
• Designed for institutional investors seeking total return, investing primarily in REITs
• Symbol: CSRIX
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
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.
35
COHEN & STEERS INSTITUTIONAL GLOBAL REALTY SHARES, INC.
OFFICERS AND DIRECTORS
Robert H. Steers
Director and co-chairman
Martin Cohen
Director and co-chairman
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 Subadministrator 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
Stroock & Stroock & Lavan LLP
180 Maiden Lane
New York, NY 10038
Distributor
Cohen & Steers Securities, LLC
280 Park Avenue
New York, NY 10017
Nasdaq Symbol: GRSIX
Web site: cohenandsteers.com
This report is authorized for delivery only to shareholders of Cohen & Steers Institutional Global Realty Shares, Inc. unless accompanied or preceded by the 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.
36
COHEN & STEERS
INSTITUTIONAL GLOBAL REALTY SHARES
280 PARK AVENUE
NEW YORK, NY 10017
eDelivery NOW AVAILABLE
Stop traditional mail delivery; receive your shareholder reports and prospectus online.
Sign up at cohenandsteers.com
ANNUAL REPORT
DECEMBER 31, 2010
GRSIXAR
Item 2. Code of Ethics.
The registrant has adopted a Code of Ethics that applies to its Principal Executive Officer and Principal Financial Officer. The registrant undertakes to provide to any person without charge, upon request, a copy of the Code of Ethics. Such request can be made by calling 800-330-7348 or writing to the Secretary of the registrant, 280 Park Avenue, New York, NY 10017.
Item 3. Audit Committee Financial Expert.
The registrant’s board has determined that Frank K. Ross, a member of the board’s audit committee, is an “audit committee financial expert”. Mr. Ross is “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:
| | 2010 | | 2009 | |
Audit Fees | | $ | 47,000 | | $ | 47,000 | |
Audit-Related Fees | | $ | 0 | | $ | 0 | |
Tax Fees | | $ | 6,250 | | $ | 6,250 | |
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, 2010 and December 31, 2009, 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:
| | 2010 | | 2009 | |
| | | | | |
Registrant | | $ | 6,250 | | $ | 6,250 | |
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 INSTITUTIONAL GLOBAL REALTY SHARES, INC.
By: | /s/ Adam M. Derechin | |
| Name: Adam M. Derechin | |
| Title: President and Chief Executive Officer | |
|
Date: March 2, 2011 |
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, 2011 | |
