CNS AR24 Digital - Book - Page 20
vehicle sponsor is responsible for decisions regarding the amount, timing and whether to pay distributions from the
investment vehicle to its beneficial owners. Subadvisory assets also include assets of third-party investment vehicles for
which we provide model portfolios. We regularly provide the investment manager of that investment vehicle with a model
portfolio of securities in accordance with the investment objectives and guidelines as set forth in each client9s investment
advisory agreement.
Closed-end Funds
The closed-end funds for which we serve as investment adviser are registered investment companies that have issued a
fixed number of shares through public offerings. These shares are listed on the New York Stock Exchange and cannot be
redeemed by the fund9s shareholders. The trading price of the shares is determined by supply and demand in the marketplace,
and, as a result, the shares may trade at a premium or discount to the net asset value of the fund. Strategies offered in closedend funds typically use leverage.
Contractual Revenues
Our revenue from the wealth channel is derived from investment advisory, administration, distribution and service fees
from open-end and closed-end funds as well as other commingled vehicles. Our revenue from the institutional channel is
derived from fees received from our clients for managing advised and subadvised accounts. Our fees are based on
contractually specified rates applied to the value of the assets we manage and, in certain cases, may include a performancebased fee. Investment advisory fee rates vary based on the vehicle, investment strategy, fees charged by other comparable
products and prevailing market conditions. Investment administration fees from the open-end funds and certain closed-end
funds are designed to reimburse us for the cost of providing these services. The investment advisory and administration
agreements are generally terminable upon specified notice periods and may also require a majority vote of the fund9s board of
directors for certain contracts.
Our revenue fluctuates with changes in the total value of our assets under management, which may occur as a result of
market appreciation and depreciation, contributions to or withdrawals from investor accounts and distributions. This revenue
is recognized over the period that the assets are managed.
Investment Strategies
Each of our investment strategies is overseen by a specialist team and led by a portfolio manager or a team of portfolio
managers, supported by dedicated analysts. These personnel are located in our New York, London and Hong Kong offices.
Each team executes fundamentally driven, actively managed investment strategies and has a well-defined process that
includes top-down macroeconomic and bottom-up fundamental research and portfolio management elements, among other
considerations. Our specialist teams are subject to multiple levels of oversight and support from the Chief Executive Officer,
Chief Investment Officer, Chief Operating Officer-Investments, Investment Risk Committee, Investment Operating
Committee and Legal and Compliance Department. Certain of our strategies involve multiple asset classes and are overseen
by our Asset Allocation Strategy Group and Chief Investment Officer.
Our core investment strategies include:
U.S. Real Estate Securities includes a wide range of strategies distinguished by concentration, risk profile and income
objective, as well as thematic portfolios designed to provide targeted allocations to specific sectors within the investable real
estate universe. Each strategy invests in a portfolio of common stocks and other securities issued by U.S. real estate
companies, including real estate investment trusts (REITs) and similar REIT-like entities. These strategies are managed by
our dedicated U.S. real estate securities investment team and draw on the broad expertise of our real estate analysts and
portfolio managers. Investment objectives include total return, capital appreciation and income.
Global/International Real Estate Securities includes a wide range of strategies distinguished by geography, concentration,
risk profile and income objective, designed to provide allocation exposure to listed real estate globally. Each strategy invests
in a portfolio of common stocks and other securities issued by real estate companies, including REITs and similar REIT-like
entities. These strategies draw on the expertise of our integrated global real estate securities investment team. Investment
objectives include total return, capital appreciation and income.
Private Real Estate includes strategies that invest primarily in real property investments. Certain strategies invest in high
quality, income-focused, stabilized real estate assets primarily within the United States while others invest directly into real
property investments of an opportunistic nature with the investment objective of capital appreciation achieved by value-added
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