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: 811-21583

 

Clough Global Dividend and Income Fund

(exact name of Registrant as specified in charter)

 

1290 Broadway, Suite 1000, Denver, Colorado 80203

(Address of principal executive offices) (Zip code)

 

Sareena Khwaja-Dixon, Secretary

Clough Global Dividend and Income Fund

1290 Broadway, Suite 1000

Denver, Colorado 80203

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 877-256-8445

 

Date of fiscal year end: October 31

 

Date of reporting period: November 1, 2019 – April 30, 2020

 

 

 

Item 1. Reports to Stockholders.

 

 

 

 

 

 

Section 19(b) Disclosure

 

April 30, 2020 (Unaudited)

 

Clough Global Dividend and Income Fund, Clough Global Equity Fund, and Clough Global Opportunities Fund (each a “Fund” and collectively, the “Funds”), acting pursuant to a Securities and Exchange Commission (“SEC”) exemptive order and with the approval of each Fund’s Board of Trustees (the “Board”), have adopted a plan, consistent with each Fund’s investment objectives and policies to support a level distribution of income, capital gains and/or return of capital (the “Plan”). In accordance with the Plan, until July 2019, each Fund paid monthly distributions in an annualized amount of not less than 10% of the respective Fund’s average monthly net asset value (“NAV”). From August 2019 to July 2021, each Fund will pay monthly distributions in an amount not less than the average distribution rate of a peer group of closed-end funds selected by the Board.

 

Under the Plan, each Fund will distribute all available investment income to its shareholders, consistent with each Fund’s primary investment objectives and as required by the Internal Revenue Code of 1986, as amended (the “Code”). If sufficient investment income is not available on a monthly basis, each Fund will distribute long-term capital gains and/or return of capital to shareholders in order to maintain a level distribution. Each monthly distribution to shareholders is expected to be at the fixed amount established by the Board, except for extraordinary distributions and potential distribution rate increases to enable each Fund to comply with the distribution requirements imposed by the Code.

 

Shareholders should not draw any conclusions about each Fund’s investment performance from the amount of these distributions or from the terms of the Plan. Each Fund’s total return performance on net asset value is presented in its financial highlights table.

 

Until July 2021, each Board may amend, suspend or terminate each Fund’s Plan without prior notice if the Board determines in good faith that continuation would constitute a breach of fiduciary duty or would violate the Investment Company Act of 1940. The suspension or termination of the Plan could have the effect of creating a trading discount (if a Fund’s stock is trading at or above net asset value) or widening an existing trading discount. Each Fund is subject to risks that could have an adverse impact on its ability to maintain level distributions. Examples of potential risks include, but are not limited to, economic downturns impacting the markets, increased market volatility, companies suspending or decreasing corporate dividend distributions and changes in the Code. Please refer to the Notes to Financial Statements in the Annual Report to Shareholders for a more complete description of its risks.

 

Please refer to Additional Information for a cumulative summary of the Section 19(a) notices for each Fund’s current fiscal period. Section 19(a) notices for each Fund, as applicable, are available on the Clough Global Closed-End Funds website www.cloughglobal.com.

 

 

 

Clough Global Funds Table of Contents

 

Shareholder Letter & Portfolio Allocation  
Clough Global Dividend and Income Fund 2
Clough Global Equity Fund 6
Clough Global Opportunities Fund 10
   
Statement of Investments  
Clough Global Dividend and Income Fund 14
Clough Global Equity Fund 18
Clough Global Opportunities Fund 22
   
Statements of Assets and Liabilities 27
   
Statements of Operations 28
   
Statements of Changes in Net Assets 29
   
Statements of Cash Flows 32
   
Financial Highlights  
Clough Global Dividend and Income Fund 34
Clough Global Equity Fund 35
Clough Global Opportunities Fund 36
   
Notes to Financial Statements 37
   
Dividend Reinvestment Plan 55
   
Additional Information  
Fund Proxy Voting Policies & Procedures 56
Portfolio Holdings 56
Notice 56
Section 19(A) Notices 56
   
Investment Advisory Agreement Approval 57

 

Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website at www.cloughglobal.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

 

Beginning on January 1, 2019, you may, notwithstanding the availability of shareholder reports online, elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with a Fund, you can call 1-866-226-8017, from 8am to 5pm CT, to let the Fund know you wish to continue receiving paper copies of your shareholder reports.

 

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-866-226-8017.

 

 

 

Clough Global Dividend and Income Fund Shareholder Letter
  April 30, 2020 (Unaudited)

 

To Our Investors,

 

First, we at Clough Capital Partners L.P. extend our best wishes to all our relationships in this extraordinary time, and hope this update finds you safe and healthy. Our investment team, along with our in-house trading, legal, finance, IT, distribution, and compliance colleagues are up and running seamlessly thanks to the important investments we have made in our infrastructure during our 20-year history.

 

The Clough Global Dividend and Income Fund (“GLV” or the “Fund”) was down -15.39% on net asset value (“NAV”) and -17.57% on market price for the first six months of the Fund’s fiscal year. The Fund’s benchmark, the 50% Bloomberg Barclays US Aggregate Bond Index/50% MSCI World Index, was down -0.78% for the same period.

 

The fiscal first half performance (November 1, 2019 – April 30, 2020) for the Fund bore the brunt of a full-blown panic over the coronavirus (COVID-19) attack and subsequent economic shutdown. The stock market decline in March reflected the most intensive scramble for cash ever. Forced deleveraging occurred in hedge funds, mortgage real estate investment trusts (“REITs”) and other traditional users of leverage. The speed and extent of the decline was exceeded only twice in the last 100 years, during the Great Depression and the Global Financial Crisis in 2007-2008. By the end of April, the Federal Reserve (the “Fed”) and U.S. Department of Treasury were responding with the strongest reflationary effort since WWII.

 

These new programs are likely, in our view, to put enough cash in the economy to turn or at least stem the tide for both the economy and financial markets. The blizzard of announcements from the Treasury and the Fed include cash payments to individuals, small business loans, and various related grants. This infusion of liquidity potentially amounts to 35 to 40% of gross domestic product (“GDP”), an impressive sum. Now authorized to buy paper in unlimited amounts, from banks and non-banks alike, the central bank is trying to make sure there are no cash shortages anywhere in the economy. We think this is likely to support the financial markets while the COVID-19 infection rate levels off. Liquidity being injected into capital markets will go somewhere, and it will still be there when the COVID-19 crisis passes. In the meantime, many stocks are down significantly and valuations for equities are currently much more attractive.

 

The Fund is using the current market dislocations to make significant investments in technology, healthcare, the emerging mortgage cycle, and attractive income from COVID-19-free sectors in the corporate bond market. We still believe more than ever in a lower for longer interest rate environment. In addition to long duration U.S. Treasuries, the Fund also expressed a low rate view by holding Eurodollar futures (Eurodollars are U.S. bank deposits held abroad and their values rise as the rates on bank deposit decline, which of course is happening). This type of approach is likely to be an effective tool, in our view, if deposit rates go negative.

 

Technology still has strong tailwinds. For one, we think cloud spending won’t slow. The months of being trapped and tethered to our homes will show us that telecommuting works. Broadband use for work, entertainment, and shopping is surging during the pandemic lockdown and we think that will speed up the 6 GHz mid-band spectrum that is so useful for the rollout of 5G. In any event, demand for 5G services will likely explode. The growth in the uses of artificial intelligence and machine learning will also likely spur a far more rapid buildout of 5G capability.

 

In March, the focus on healthcare quickly switched from the presidential race to COVID-19 with its unprecedented demand shock. The pandemic has delayed non-essential medical procedures, slowed clinical trials, and interrupted new drug and medical device launches. But it has also created opportunities by accelerating the shift toward virtual care and telemedicine, innovative pharmaceutical and biotech development, and new vaccines and treatments for this treacherous disease. The solution to the economic shutdown will be found in science and biology. While the government stimulus is important to reviving the economy, isolating and launching a treatment that slows replication of COVID-19 in the human body so that our immune system can catch up and fight the virus is the real solution to getting back to normal.

 

We believe the pending mortgage cycle could be very significant as interest rates have collapsed from the economic slowdown. With the 10-year Treasury well below 1%, the management of First American Financial Corp, one of the largest title insurers, recently estimated that there is $8 trillion dollars of mortgages in the U.S. that are eligible for refinancing and only $1 to $2 trillion in capacity to originate and process these potential transactions. Our investments in this area will focus on pure plays that we believe are likely to directly benefit from the mortgage cycle in origination, title insurance, as well as best in class homebuilders.

 

We have been of the view for some time now that sustainable yield will be in short supply. The pandemic and the economic fallout will only exacerbate this shortage. With the recent sell-off in corporate debt, we believe investment grade corporate bonds in non COVID-19 sectors, like software and pharmaceuticals, can offer equity-like returns with much lower volatility. Some high-quality REITs in the medical office building sector as well as higher quality agency mortgage REITs and business development companies (“BDCs”) with the liquidity and balance sheet to ride out the economic downturn can offer 5% to 10% dividend yields at significant discounts to book value.

 

Top 5 Contributors for the Fund’s first fiscal half of the year:

 

Microsoft Corp (MSFT): the pandemic is accelerating the transition to cloud-hosted software. Microsoft Azure and Office 365 both continue to grow rapidly through this period despite the economic weakness. The advantage of cloud-based software is that the software can be hosted, launched, and used remotely at home, away from the office.

 

2 www.cloughglobal.com

 

 

 

Clough Global Dividend and Income Fund Shareholder Letter
  April 30, 2020 (Unaudited)

 

Apple Inc (AAPL): we are looking forward to Apple’s 5G offering next year. Longer term, its strong balance sheet and share buyback program coupled with rapid growth in services make it, in our view, an attractive risk reward opportunity for the Fund.

 

Ford Motor (F): the Fund was short Ford Motor Co during the period. A heavy debt load and margin pressure from new model launches were weighing on performance prior to the onset of the pandemic. COVID-19 quickly priced a recession level valuation into the stock. The Fund has since covered the position.

 

Booking Holdings Inc (BKNG) and Sabre Corp (SABR): the Fund established short positions in both BKNG and SABR during the onset of the virus in January. Both companies help facilitate online travel reservations. The mounting travel restrictions from COVID-19 quickly reduced their sales and their stocks fell in value. The Fund has since covered both positions.

 

Top 5 Detractors for the Fund’s first fiscal half of the year:

 

Citigroup Inc (C): the U.S. money center banks were sold off by investors over 50% in a matter of weeks. We believe the move lower to this degree was overdone. While there will certainly be losses on the balance sheet, Citigroup does not have significant exposure to the hardest hit areas of the economy like energy, restaurants, and travel and leisure. Unlike 2008, Citigroup, as well as JPMorgan Chase & Co and Bank of America Corp, are operating with much lower leverage and greater liquidity and will be much better situated to recover from the collapse in economic activity. The Fund continues to hold the position.

 

PennyMac Mortgage Investment Trust (PMT) is an agency mortgage REIT that suffered a significant hit to book value during the first half of the year and was forced to reduce its dividend. Funding costs increased while the pricing of the mortgages it holds fell violently. We believe that the management team at PMT is a good operator of the REIT, but we believe there are other sectors that can recover quicker from the March lows and have exited the position.

 

Golub Capital BDC Inc (GBDC) is a BDC with a long and successful track record in managing credit to middle market companies. Given the rapid decline in the economy and the stress it put on many of its portfolio companies, Golub reduced its dividend and launched a rights offering to shore up its balance sheet and have dry powder to take advantage of distressed valuations in the market. The rights offering was a short term hit to pricing. However, we believe GBDC offers significant potential going forward in a recovery. The Fund participated in the rights offering and currently maintains its position in GBDC.

 

Ladder Capital Corp (LADR) is a commercial mortgage REIT. Ladder’s portfolio came under tremendous pressure during March. Investors, worried over questions of rent forbearance and future demand for apartments, hotels, and office space, quickly sold vehicles with commercial exposure like LADR. Similar to PMT, we believe LADR’s management is very sound. However, we believe the recovery could take some time for LADR and have exited the position.

 

Community Healthcare Trust Inc (CHCT) is a best-in-class medical office building REIT. It leases office space to outpatient facilities that perform essential services like chemotherapy and dialysis. Approximately 97% of their occupants paid rent in March and April. Management continues to make accretive acquisitions and made a modest increase to the dividend. The stock has rallied from its lows in March and we currently maintain the position.

 

The hedge book served the Fund well during the first half of the year. With valuations over-sold across many sectors, the Fund has covered many of its short positions while maintaining long term positions in sectors like European banks. We believe long duration U.S. Treasuries and the previously mentioned Eurodollar futures are, for the time being, more likely sources of potential protection for the Fund’s long equity book.

 

As always, please don’t hesitate to reach out to us with any questions. Be safe and we hope to see many of you in person as soon as possible.

 

 

Charles I Clough, Jr.

 

 

Robert M. Zdunczyk

 

Semi-Annual Report  |  April 30, 2020 3

 

 

 

Clough Global Dividend and Income Fund Shareholder Letter
  April 30, 2020 (Unaudited)

 

This letter is provided for informational purposes only and is not an offer to purchase or sell shares. Clough Global Dividend and Income Fund (the “Fund”) is a closed-end fund, which is traded on the NYSE American LLC, and does not continuously issue shares for sale as open-end mutual funds do. The market price of a closed-end Fund is based on the market’s value.

 

The information in this letter represents the opinions of the individual portfolio managers and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. Past performance is no guarantee of future results.

 

MSCI World Index: a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of 23 developed markets countries. Both indices referenced herein reflect the reinvestment of dividends. Effective July 31, 2010, the MSCI World Index returns prior to January 1, 2002 were revised to reflect the total returns, with dividends reinvested, reported by MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com).

 

Bloomberg Barclays US Aggregate Bond Index: an index that measures the performance of the U.S. investment grade bond market. The Barclays Aggregate Bond index invests in a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States, including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year.

 

The net asset value (NAV) of a closed-end fund is the market price of the underlying investments (i.e., stocks and bonds) in the fund’s portfolio, minus liabilities, divided by the total number of fund shares outstanding. However, the fund also has a market price; the value of which it trades on an exchange. This market price can be more or less than its NAV.

 

It is not possible to invest directly in an Index.

 

RISKS

 

An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain an annual report or semiannual report which contains this and other information visit www.cloughglobal.com or call 1-877-256-8445. Read them carefully before investing.

 

A Fund’s distribution policy will, under certain circumstances, have certain adverse consequences to the Fund and its shareholders because it may result in a return of capital resulting in less of a shareholder’s assets being invested in the Fund and, over time, increase the Fund’s expense ratio.

 

Distributions may be paid from sources of income other than ordinary income, such as net realized short-term capital gains, net realized long-term capital gains and return of capital. Based on current estimates, we anticipate the most recent distribution has been paid from short-term and long-term capital gains. The actual amounts and sources of the amounts for tax reporting purposes will depend upon a Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. If a distribution includes anything other than net investment income, the Fund provides a Section 19(a) notice of the best estimate of its distribution sources at that time. These estimates may not match the final tax characterization (for the full year’s distributions) contained in shareholders’ 1099-DIV forms after the end of the year.

 

A Fund’s investments in securities of foreign issuers are subject to risks not usually associated with owning securities of U.S. issuers. These risks can include fluctuations in foreign currencies, foreign currency exchange controls, social, political and economic instability, differences in securities regulation and trading, expropriation or nationalization of assets, and foreign taxation issues.

 

A Fund’s investments in preferred stocks and bonds of below investment grade quality (commonly referred to as “high yield” or “junk bonds”), if any, are predominately speculative because of the credit risk of their issuers.

 

An investment by a Fund in REITs will subject it to various risks. The first, real estate industry risk, is the risk that the REIT share prices will decline because of adverse developments affecting the real estate industry and real property values. In general, real estate values can be affected by a variety of factors, including supply and demand for properties, the economic health of the country or of different regions, and the strength of specific industries that rent properties. The second, investment style risk, is the risk that returns from REITs—which typically are small or medium capitalization stocks—will trail returns from the overall stock market. The third, interest rate risk, is the risk that changes in interest rates may hurt real estate values or make REIT shares less attractive than other income-producing investments. Credit risk is the risk that an issuer of a preferred or debt security will become unable to meet its obligation to make dividend, interest and principal payments.

 

Interest rate risk is the risk that preferred stocks paying fixed dividend rates and fixed-rate debt securities will decline in value because of changes in market interest rates. When interest rates rise the value of such securities generally will fall. Derivative transactions (such as futures contracts and options thereon, options, swaps, and short sales) subject a Fund to increased risk of principal loss due to imperfect correlation or unexpected price or interest rate movements. Compared to investment companies that focus only on large companies, the Fund’s share price may be more volatile because it also invests in small and medium capitalization companies.

 

Past performance is no guarantee of future results.

 

4 www.cloughglobal.com

 

 

 

Clough Global Dividend and Income Fund Portfolio Allocation
    April 30, 2020 (Unaudited)

 

Top 10 Equity Holdings(a)(d) % of Total Portfolio
   
1. Apple, Inc. 3.70%
2. Microsoft Corp. 3.51%
3. Community Healthcare Trust, Inc. 3.40%
4. PennyMac Financial Services, Inc. 3.37%
5. JPMorgan Chase & Co. 3.30%
6. Bank of America Corp. 2.89%
7. Citigroup, Inc. 2.87%
8. AIA Group, Ltd. 1.97%
9. Mastercard, Inc. 1.90%
10. Microchip Technology, Inc. 1.63%
   
Global Securities Holdings(a) % of Total Portfolio
   
United States 64.46%
U.S. Multinationals(b) 17.40%
China 10.85%
European Economic Community 2.84%
Hong Kong 2.63%
Taiwan 1.31%
India 1.08%
South Korea 0.59%
United Kingdom 0.37%
Other -1.54%
TOTAL INVESTMENTS 100.00%

 

Asset Allocation(a) % of Total Portfolio
   
Common Stock - US 22.12%
Common Stock - Foreign 26.90%
Exchange Traded Funds -0.65%
Total Return Swap Contracts 3.32%
Total Equities 51.69%
   
Government L/T 30.40%
Corporate Debt 11.51%
Preferred Stock 1.00%
Asset-Backed Securities 0.06%
Total Fixed Income 42.97%
   
Future 2.84%
Short-Term Investments 1.28%
Other (Cash) 0.95%
Purchased Options 0.25%
Warrant 0.02%
   
TOTAL INVESTMENTS 100.00%

 

  Long Short Gross Net
  Exposure Exposure Exposure Exposure
Country Allocation(c) % TNA %TNA %TNA %TNA
         
United States 110.8% -6.7% 117.5% 104.1%
U.S. Multinationals(b) 32.8% -5.9% 38.7% 26.9%
China 16.8% 0.0% 16.8% 16.8%
Taiwan 2.0% 0.0% 2.0% 2.0%
India 1.7% 0.0% 1.7% 1.7%
South Korea 0.9% 0.0% 0.9% 0.9%
United Kingdom 0.6% 0.0% 0.6% 0.6%
Other 4.5% -2.8% 7.3% 1.7%
TOTAL INVESTMENTS 170.1% -15.4% 185.5% 154.7%

 

(a) Percentages calculated based on total portfolio, including securities sold short, cash balances, market value of futures, and notional value of return swaps.
(b) U.S. Multinationals – has more than 50% of revenues derived outside the U.S.
(c) Percentages calculated based on net assets, including securities sold short, cash balances, market value of futures, and notional value of return swaps.
(d) Only long equity and equity-related positions are listed.

 

Semi-Annual Report  |  April 30, 2020 5

 

 

 

Clough Global Equity Fund Shareholder Letter
  April 30, 2020 (Unaudited)

 

To Our Investors,

 

First, we at Clough Capital Partners L.P. extend our best wishes to all our relationships in this extraordinary time, and hope this update finds you safe and healthy. Our investment team, along with our in-house trading, legal, finance, IT, distribution, and compliance colleagues are up and running seamlessly thanks to the important investments we have made in our infrastructure during our 20-year history.

 

For the first six months of the fiscal year ending April 30, 2020, the Clough Global Equity Fund (“GLQ” or the “Fund”) was down -8.49% on net asset value (“NAV”) and -12.58% on market price. The Fund’s benchmark, the MSCI World Index, was down -7.03% for the same period.

 

The fiscal first half performance (November 1, 2019 – April 30, 2020) for the Fund bore the brunt of a full-blown panic over the coronavirus (COVID-19) attack and subsequent economic shutdown. The stock market decline in March reflected the most intensive scramble for cash ever. Forced deleveraging occurred in hedge funds, mortgage real estate investment trusts (“REITs”) and other traditional users of leverage. The speed and extent of the decline was exceeded only twice in the last 100 years, during the Great Depression and the Global Financial Crisis in 2007-2008. By the end of April, the Federal Reserve (the “Fed”) and U.S. Department of Treasury were responding with the strongest reflationary effort since WWII.

 

These new programs are likely, in our view, to put enough cash in the economy to turn or at least stem the tide for both the economy and financial markets. The blizzard of announcements from the Treasury and the Fed include cash payments to individuals, small business loans, and various related grants. This infusion of liquidity potentially amounts to 35 to 40% of gross domestic product (“GDP”), an impressive sum. Now authorized to buy paper in unlimited amounts, from banks and non-banks alike, the central bank is trying to make sure there are no cash shortages anywhere in the economy. We think this is likely to support the financial markets while the COVID-19 infection rate levels off. Liquidity being injected into capital markets will go somewhere, and it will still be there when the COVID-19 crisis passes. In the meantime, many stocks are down significantly and valuations for equities are currently much more attractive.

 

The Fund is using the current market dislocations to make significant investments in technology, healthcare and the emerging mortgage cycle. We still believe more than ever in a lower for longer interest rate environment. In addition to long duration U.S. Treasuries, the Fund also expressed a low rate view by holding Eurodollar futures (Eurodollars are U.S. bank deposits held abroad and their values rise as the rates on bank deposit decline, which of course is happening). This type of approach islikely to be an effective tool, in our view, if deposit rates go negative.

 

Technology still has strong tailwinds. For one, we think cloud spending won’t slow. The months of being trapped and tethered to our homes will show us that telecommuting works. Broadband use for work, entertainment, and shopping is surging during the pandemic lockdown and we think that will speed up the 6 GHz mid-band spectrum that is so useful for the rollout of 5G. In any event, demand for 5G services will likely explode. The growth in the uses of artificial intelligence and machine learning will also likely spur a far more rapid buildout of 5G capability.

 

In March, the focus on healthcare quickly switched from the presidential race to COVID-19 with its unprecedented demand shock. The pandemic has delayed non-essential medical procedures, slowed clinical trials, and interrupted new drug and medical device launches. But it has also created opportunities by accelerating the shift toward virtual care and telemedicine, innovative pharmaceutical and biotech development, and new vaccines and treatments for this treacherous disease. The solution to the economic shutdown will be found in science and biology. While the government stimulus is important to reviving the economy, isolating and launching a treatment that slows replication of COVID-19 in the human body so that our immune system can catch up and fight the virus is the real solution to getting back to normal.

 

We believe the pending mortgage cycle could be very significant as interest rates have collapsed from the economic slowdown. With the 10-year Treasury well below 1%, the management of First American Financial Corp, one of the largest title insurers, recently estimated that there is $8 trillion dollars of mortgages in the U.S. that are eligible for refinancing and only $1 to $2 trillion in capacity to originate and process these potential transactions. Our investments in this area will focus on pure plays that we believe are likely to directly benefit from the mortgage cycle in origination, title insurance, as well as best in class homebuilders.

 

We have been of the view for some time now that sustainable yield will be in short supply. The pandemic and the economic fallout will only exacerbate this shortage. In addition to high quality names in technology and health care with attractive free cash flow yields, the Fund will continue to invest in well run, high dividend paying stocks. Best in class REITs in the medical office building sector as well as higher quality agency mortgage REITs and business development companies (“BDCs”) with the liquidity and balance sheet to ride out the economic downturn can offer 5% to 10% dividend yields at significant discounts to book value.

 

Top 5 Contributors for the Fund’s first fiscal half of the year:

 

Teladoc Health Inc (TDOC) is the leading telemedicine company in the U.S. The stock gained as the COVID-19 pandemic accelerated the shift from in-office medicine to telemedicine. In April, TDOC raised its 2020 revenue guidance on increased demand for telemedicine. We believe this shift away from in-office visits will continue after the pandemic has passed. The Fund continues to hold the position.

 

6 www.cloughglobal.com

 

 

 

Clough Global Equity Fund Shareholder Letter
  April 30, 2020 (Unaudited)

 

Amazon.com Inc (AMZN): for years, Amazon has tried to get prime users to buy groceries online with limited success. The pandemic has changed that with e-commerce penetration spiking even in categories like groceries that had been considered difficult. We believe the crisis will continue to improve the trajectory of e-commerce adoption.

 

Zai Lab Ltd (ZLAB), a China-based biotechnology company with a broad range of in-licensed products, gained during the first half of the year. The company announced strong results for its oncology product launch, reiterated its expected 2020 milestones (implying minimal disruption from COVID-19), and completed a successful capital raise in January. The Fund continues to hold the position

 

Microsoft Corp (MSFT): the pandemic is accelerating the transition to cloud-hosted software. Microsoft Azure and Office 365 both continue to grow rapidly through this period despite the economic weakness. The advantage of cloud-based software is that the software can be hosted, launched, and used remotely at home, away from the office.

 

Regeneron Pharmaceuticals Inc (REGN), a large diversified biotechnology company, gained after providing results that exceeded expectations for its two key products, Dupixent and Eylea. The company also announced positive data in the oncology pipeline and is developing an antibody cocktail that could potentially serve as a treatment for COVID-19. The Fund continues to hold the position.

 

Top 5 Detractors for the Fund’s first fiscal half of the year:

 

Citigroup Inc (C): the U.S. money center banks were sold off by investors over 50% in a matter of weeks. We believe the move lower to this degree was overdone. While there will certainly be losses on the balance sheet, Citigroup does not have significant exposure to the hardest hit areas of the economy like energy, restaurants, and travel and leisure. Unlike 2008, Citigroup, as well as JPMorgan Chase & Co and Bank of America Corp, are operating with much lower leverage and greater liquidity and will be much better situated to recover from the collapse in economic activity. The Fund continues to hold the position.

 

Two Harbors Investment Corp (TWO) and PennyMac Mortgage Investment Trust (PMT) are agency mortgage REITs that suffered significant hits to book value during the first half of the year and were forced to reduce their dividends. Funding costs increased for both while the pricing of the mortgages they held fell violently. We believe that the management teams at TWO and PMT are good operators of their REITs, but we believe there are other sectors that can recover quicker from the March lows and have exited the positions.

 

Ladder Capital Corp (LADR) is a commercial mortgage REIT. Ladder’s portfolio came under tremendous pressure during March. Investors, worried over questions of rent forbearance and future demand for apartments, hotels, and office space, quickly sold vehicles with commercial exposure like LADR. Similar to PMT, we believe LADR’s management is very sound. However, we believe the recovery could take some time for LADR and have exited the position.

 

Golub Capital BDC Inc (GBDC) is a BDC with a long and successful track record in managing credit to middle market companies. Given the rapid demise in the economy and the stress it would put on many of its portfolio companies, Golub reduced its dividend and launched a rights offering to shore up its balance sheet and have dry powder to take advantage of distressed valuations in the market. The rights offering was a short term hit to pricing. However, we believe GBDC offers significant potential going forward in a recovery. The Fund participated in the rights offering and currently maintains its position in GBDC.

 

The hedge book served the Fund well during the first half of the year. With valuations over-sold across many sectors, the Fund has covered many of its short positions while maintaining long term positions in sectors like European banks. We believe long duration U.S. Treasuries and the previously mentioned Eurodollar futures are, for the time being, more likely sources of potential protection for the Fund’s long equity book.

 

As always, please don’t hesitate to reach out to us with any questions. Be safe and we hope to see many of you in person as soon as possible.

 

 

 

Charles I Clough, Jr.

 

 

 

Robert M. Zdunczyk

  

Semi-Annual Report  |  April 30, 2020 7

 

 

 

Clough Global Equity Fund Shareholder Letter
  April 30, 2020 (Unaudited)

 

This letter is provided for informational purposes only and is not an offer to purchase or sell shares. Clough Global Equity Fund (the “Fund”) is a closed-end fund, which is traded on the NYSE American LLC, and does not continuously issue shares for sale as open-end mutual funds do. The market price of a closed-end Fund is based on the market’s value.

 

The information in this letter represents the opinions of the individual portfolio managers and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. Past performance is no guarantee of future results.

 

MSCI World Index: a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of 23 developed markets countries. Both indices referenced herein reflect the reinvestment of dividends. Effective July 31, 2010, the MSCI World Index returns prior to January 1, 2002 were revised to reflect the total returns, with dividends reinvested, reported by MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com).

 

The net asset value (NAV) of a closed-end fund is the market price of the underlying investments (i.e., stocks and bonds) in the fund’s portfolio, minus liabilities, divided by the total number of fund shares outstanding. However, the fund also has a market price; the value of which it trades on an exchange. This market price can be more or less than its NAV.

 

It is not possible to invest directly in an Index.

 

RISKS

 

An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain an annual report or semiannual report which contains this and other information visit www.cloughglobal.com or call 1-877-256-8445. Read them carefully before investing.

 

A Fund’s distribution policy will, under certain circumstances, have certain adverse consequences to the Fund and its shareholders because it may result in a return of capital resulting in less of a shareholder’s assets being invested in the Fund and, over time, increase the Fund’s expense ratio.

 

Distributions may be paid from sources of income other than ordinary income, such as net realized short-term capital gains, net realized long-term capital gains and return of capital. Based on current estimates, we anticipate the most recent distribution has been paid from short-term and long-term capital gains. The actual amounts and sources of the amounts for tax reporting purposes will depend upon a Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. If a distribution includes anything other than net investment income, the Fund provides a Section 19(a) notice of the best estimate of its distribution sources at that time. These estimates may not match the final tax characterization (for the full year’s distributions) contained in shareholders’ 1099-DIV forms after the end of the year.

 

A Fund’s investments in securities of foreign issuers are subject to risks not usually associated with owning securities of U.S. issuers. These risks can include fluctuations in foreign currencies, foreign currency exchange controls, social, political and economic instability, differences in securities regulation and trading, expropriation or nationalization of assets, and foreign taxation issues.

 

A Fund’s investments in preferred stocks and bonds of below investment grade quality (commonly referred to as “high yield” or “junk bonds”), if any, are predominately speculative because of the credit risk of their issuers.

 

An investment by a Fund in REITs will subject it to various risks. The first, real estate industry risk, is the risk that the REIT share prices will decline because of adverse developments affecting the real estate industry and real property values. In general, real estate values can be affected by a variety of factors, including supply and demand for properties, the economic health of the country or of different regions, and the strength of specific industries that rent properties. The second, investment style risk, is the risk that returns from REITs—which typically are small or medium capitalization stocks—will trail returns from the overall stock market. The third, interest rate risk, is the risk that changes in interest rates may hurt real estate values or make REIT shares less attractive than other income-producing investments. Credit risk is the risk that an issuer of a preferred or debt security will become unable to meet its obligation to make dividend, interest and principal payments.

 

Interest rate risk is the risk that preferred stocks paying fixed dividend rates and fixed-rate debt securities will decline in value because of changes in market interest rates. When interest rates rise the value of such securities generally will fall. Derivative transactions (such as futures contracts and options thereon, options, swaps, and short sales) subject a Fund to increased risk of principal loss due to imperfect correlation or unexpected price or interest rate movements. Compared to investment companies that focus only on large companies, the Fund’s share price may be more volatile because it also invests in small and medium capitalization companies.

 

Past performance is no guarantee of future results.

 

8 www.cloughglobal.com

 

 

 

Clough Global Equity Fund Portfolio Allocation
  April 30, 2020 (Unaudited)

 

Top 10 Equity Holdings(a)(d) % of Total Portfolio
   
1. PennyMac Financial Services, Inc. 3.42%
2. Micron Technology, Inc. 3.36%
3. Alibaba Group Holding, Ltd. 2.84%
4. Amazon.com, Inc. 2.83%
5. Citigroup, Inc. 2.68%
6. Microsoft Corp. 2.61%
7. Bank of America Corp. 2.60%
8. JPMorgan Chase & Co. 2.15%
9. Regeneron Pharmaceuticals, Inc. 1.89%
10. Microchip Technology, Inc. 1.71%
   
Global Securities Holdings(a) % of Total Portfolio
   
United States 64.63%
China 17.64%
U.S. Multinationals(b) 7.62%
European Economic Community 2.88%
Hong Kong 1.98%
Switzerland 1.69%
Taiwan 1.35%
India 1.07%
United Kingdom 0.96%
Canada 0.76%
Other -0.58%
TOTAL INVESTMENTS 100.00%

 

Asset Allocation(a) % of Total Portfolio
   
Common Stock - US 42.95%
Common Stock - Foreign 35.55%
Exchange Traded Funds -8.18%
Total Return Swap Contracts 4.03%
Total Equities 74.35%
   
Government L/T 18.05%
Preferred Stock 0.08%
Total Fixed Income 18.13%
   
Other (Cash) 3.90%
Future 2.88%
Purchased Options 0.44%
Short-Term Investments 0.29%
Warrant 0.02%
TOTAL INVESTMENTS 100.00%

 

  Long Short Gross Net
  Exposure Exposure Exposure Exposure
Country Allocation(c) % TNA %TNA %TNA %TNA
         
United States 106.4% -6.5% 112.9% 99.9%
China 26.1% 0.0% 26.1% 26.1%
U.S. Multinationals(b) 28.2% -16.9% 45.1% 11.3%
Hong Kong 2.9% 0.0% 2.9% 2.9%
Switzerland 2.5% 0.0% 2.5% 2.5%
Taiwan 2.0% 0.0% 2.0% 2.0%
India 1.6% 0.0% 1.6% 1.6%
United Kingdom 1.4% 0.0% 1.4% 1.4%
Canada 1.1% 0.0% 1.1% 1.1%
Other 1.9% -2.8% 4.7% -0.9%
TOTAL INVESTMENTS 174.1% -26.2% 200.3% 147.9%

 

(a) Percentages calculated based on total portfolio, including securities sold short, cash balances, market value of futures, and notional value of return swaps.
(b) U.S. Multinationals – has more than 50% of revenues derived outside the U.S.
(c) Percentages calculated based on net assets, including securities sold short, cash balances, market value of futures, and notional value of return swaps.
(d) Only long equity and equity-related positions are listed.

 

Semi-Annual Report  |  April 30, 2020 9

 

 

 

Clough Global Opportunities Fund Shareholder Letter
  April 30, 2020 (Unaudited)

 

To Our Investors,

 

First, we at Clough Capital Partners L.P. extend our best wishes to all our relationships in this extraordinary time, and hope this update finds you safe and healthy. Our investment team, along with our in-house trading, legal, finance, IT, distribution, and compliance colleagues are up and running seamlessly thanks to the important investments we have made in our infrastructure during our 20-year history.

 

The Clough Global Opportunities Fund (“GLO” or the “Fund”) was down -7.78% on net asset value (“NAV”) and -8.38% on market price for the first six months of the Fund’s current fiscal year. The Fund’s benchmark, the 75% MSCI World Index/25% Bloomberg Barclays US Aggregate Index, was down 3.83% for the same period.

 

The fiscal first half performance (November 1, 2019 – April 30, 2020) for the Fund bore the brunt of a full-blown panic over the coronavirus (COVID-19) attack and subsequent economic shutdown. The stock market decline in March reflected the most intensive scramble for cash ever. Forced deleveraging occurred in hedge funds, mortgage real estate investment trusts (“REITs”) and other traditional users of leverage. The speed and extent of the decline was exceeded only twice in the last 100 years, during the Great Depression and the Global Financial Crisis in 2007-2008. By the end of April, the Federal Reserve (the “Fed”) and U.S. Department of Treasury were responding with the strongest reflationary effort since WWII.

 

These new programs are likely, in our view, to put enough cash in the economy to turn or at least stem the tide for both the economy and financial markets. The blizzard of announcements from the Treasury and the Fed include cash payments to individuals, small business loans, and various related grants. This infusion of liquidity potentially amounts to 35 to 40% of U.S. gross domestic product (“GDP”), an impressive sum. Now authorized to buy paper in unlimited amounts, from banks and non-banks alike, the central bank is trying to make sure there are no cash shortages anywhere in the economy. We think this is likely to support the financial markets while the COVID-19 infection rate levels off. Liquidity being injected into capital markets will go somewhere, and it will still be there when the COVID-19 crisis passes. In the meantime, many stocks are down significantly and valuations for equities are currently much more attractive.

 

The Fund is using the current market dislocations to make significant investments in technology, healthcare, the emerging mortgage cycle, and attractive income from COVID-19-free sectors in the corporate bond market. We still believe more than ever in a lower for longer interest rate environment. In addition to long duration U.S. Treasuries, the Fund also expressed a low rate view by holding Eurodollar futures (Eurodollars are U.S. bank deposits held abroad and their values rise as the rates on bank deposit decline, which of course is happening). This type of approach is likely to be an effective tool, in our view, if deposit rates go negative.

 

Technology still has strong tailwinds. For one, we think cloud spending won’t slow. The months of being trapped and tethered to our homes will show us that telecommuting works. Broadband use for work, entertainment, and shopping is surging during the pandemic lockdown and we think that will speed up the 6 GHz mid-band spectrum that is so useful for the rollout of 5G. In any event, demand for 5G services will likely explode. The growth in the uses of artificial intelligence and machine learning will also likely spur a far more rapid buildout of 5G capability.

 

In March, the focus on healthcare quickly switched from the presidential race to COVID-19 with its unprecedented demand shock. The pandemic has delayed non-essential medical procedures, slowed clinical trials, and interrupted new drug and medical device launches. But it has also created opportunities by accelerating the shift toward virtual care and telemedicine, innovative pharmaceutical and biotech development, and new vaccines and treatments for this treacherous disease. The solution to the economic shutdown will be found in science and biology. While the government stimulus is important to reviving the economy, isolating and launching a treatment that slows replication of COVID-19 in the human body so that our immune system can catch up and fight the virus is the real solution to getting back to normal.

 

We believe the pending mortgage cycle could be very significant as interest rates have collapsed from the economic slowdown. With the 10-year Treasury well below 1%, the management of First American Financial Corp, one of the largest title insurers, recently estimated that there is $8 trillion dollars of mortgages in the U.S. that are eligible for refinancing and only $1 to $2 trillion in capacity to originate and process these potential transactions. Our investments in this area will focus on pure plays that we believe are likely to directly benefit from the mortgage cycle in origination, title insurance, as well as best in class homebuilders.

 

We have been of the view for some time now that sustainable yield will be in short supply. The pandemic and the economic fallout will only exacerbate this shortage. With the recent sell-off in corporate debt, we believe investment grade corporate bonds in non COVID-19 sectors, like software and pharmaceuticals, can offer equity-like returns with much lower volatility. Some high-quality REITs in the medical office building sector as well as higher quality agency mortgage REITs and business development companies (“BDCs”) with the liquidity and balance sheet to ride out the economic downturn can offer 5% to 10% dividend yields at significant discounts to book value.

 

Top 5 Contributors [for the Fund’s first fiscal half of the year]:

 

Teladoc Health Inc (TDOC) is the leading telemedicine company in the U.S. The stock gained as the COVID-19 pandemic accelerated the shift from in-office medicine to telemedicine. In April, TDOC raised its 2020 revenue guidance as a result of increased demand for telemedicine. We believe this shift away from in-office visits will continue after the pandemic has passed. TDOC remains a core holding in the Fund.

 

10 www.cloughglobal.com

 

 

 

Clough Global Opportunities Fund Shareholder Letter
  April 30, 2020 (Unaudited)

 

Zai Lab Ltd (ZLAB), a China-based biotechnology company with a broad range of in-licensed products, gained during the first half of the year. The company announced strong results for its oncology product launch, reiterated its expected 2020 milestones (implying minimal disruption from COVID-19), and completed a successful capital raise in January. The Fund continues to hold the position.

 

Microsoft Corp (MSFT): the pandemic is accelerating the transition to cloud-hosted software. Microsoft Azure and Office 365 both continue to grow rapidly through this period despite the economic weakness. The advantage of cloud-based software is that the software can be hosted, launched, and used remotely at home, away from the office.

 

Netflix Inc (NFLX) is a core position in the Fund as we believe the global transition to video streaming is still in an early stage. The pandemic drove usage in the first quarter, as management reported a significant beat to new subscriber additions in their Q1 2020 earnings report. We continue to like the stock given its unrivaled content distribution and management team.

 

Regeneron Pharmaceuticals Inc (REGN), a large diversified biotechnology company, gained after providing results that exceeded expectations for its two key products, Dupixent and Eylea. The company also announced positive data in its oncology pipeline and is developing an antibody cocktail that could potentially serve as a treatment for COVID-19. The Fund continues to hold the position.

 

Top 5 Detractors [for the Fund’s first fiscal half of the year]:

 

Citigroup Inc (C): the U.S. money center banks were sold off by investors over 50% in a matter of weeks. We believe the move lower to this degree was overdone. While there will certainly be losses on the balance sheet, Citigroup does not have significant exposure to the hardest hit areas of the economy like energy, restaurants, and travel and leisure. Unlike 2008, Citigroup, as well as JPMorgan Chase & Co and Bank of America Corp, are operating with much lower leverage and greater liquidity and will be much better situated to recover from the collapse in economic activity. The Fund continues to hold the position.

 

Two Harbors Investment Corp (TWO) and PennyMac Mortgage Investment Trust (PMT) are agency mortgage REITs that suffered significant hits to book value during the first half of the year and were forced to reduce their dividends. Funding costs increased for both while the pricing of the mortgages they hold fell violently. We believe that the management teams at TWO and PMT are good operators of their REITs, but we feel there are other sectors that can recover quicker from the March lows and have exited the positions.

 

Ladder Capital Corp (LADR), is a commercial mortgage REIT. Ladder’s portfolio came under tremendous pressure during March. Investors, worried over questions of rent forbearance and future demand for apartments, hotels, and office space, quickly sold vehicles with commercial exposure like LADR. Similar to PMT, we believe LADR management is very sound. However, we believe the recovery could take some time for LADR and have exited the position.

 

Ares Capital Corp (ARCC) is a leading BDC with a strong history of managing credit to middle market companies. ARCC’s book value decreased as the sudden economic collapse put strain on its portfolio companies. Like most BDCs, Ares cut its dividend to shore up its balance sheet. We are strong believers in the ARCC management team and have followed them closely for the last fifteen years. At this time, we feel the recovery in price will be a slow grind and thus have temporarily exited the position until a more attractive entry point hopefully presents itself.

 

The hedge book served the Fund well during the first half of the year. With valuations over-sold across many sectors, the Fund has covered many of its short positions while maintaining long term positions in sectors like European banks. We believe long duration U.S. Treasuries and the previously mentioned Eurodollar futures are, for the time being, more likely sources of potential protection for the Fund’s long equity book.

 

As always, please don’t hesitate to reach out to us with any questions. Be safe and we hope to see many of you in person as soon as possible.

 

 

 

Charles I Clough, Jr.

 

 

 

Robert M. Zdunczyk

 

Semi-Annual Report  |  April 30, 2020 11

 

 

 

Clough Global Opportunities Fund Shareholder Letter
  April 30, 2020 (Unaudited)

 

This letter is provided for informational purposes only and is not an offer to purchase or sell shares. Clough Opportunities Fund (the “Fund”) is a closed-end fund, which is traded on the NYSE American LLC, and does not continuously issue shares for sale as open-end mutual funds do. The market price of a closed-end Fund is based on the market’s value.

 

The information in this letter represents the opinions of the individual portfolio managers and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. Past performance is no guarantee of future results.

 

MSCI World Index: a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of 23 developed markets countries. Both indices referenced herein reflect the reinvestment of dividends. Effective July 31, 2010, the MSCI World Index returns prior to January 1, 2002 were revised to reflect the total returns, with dividends reinvested, reported by MSCI. The MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an “as is” basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the “MSCI Parties”) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages (www.msci.com).

 

Bloomberg Barclays US Aggregate Bond Index: an index that measures the performance of the U.S. investment grade bond market. The Barclays Aggregate Bond index invests in a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States, including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year.

 

The net asset value (NAV) of a closed-end fund is the market price of the underlying investments (i.e., stocks and bonds) in the fund’s portfolio, minus liabilities, divided by the total number of fund shares outstanding. However, the fund also has a market price; the value of which it trades on an exchange. This market price can be more or less than its NAV.

 

It is not possible to invest directly in an Index.

 

RISKS

 

An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain an annual report or semiannual report which contains this and other information visit www.cloughglobal.com or call 1-877-256-8445. Read them carefully before investing.

 

A Fund’s distribution policy will, under certain circumstances, have certain adverse consequences to the Fund and its shareholders because it may result in a return of capital resulting in less of a shareholder’s assets being invested in the Fund and, over time, increase the Fund’s expense ratio.

 

Distributions may be paid from sources of income other than ordinary income, such as net realized short-term capital gains, net realized long-term capital gains and return of capital. Based on current estimates, we anticipate the most recent distribution has been paid from short-term and long-term capital gains. The actual amounts and sources of the amounts for tax reporting purposes will depend upon a Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. If a distribution includes anything other than net investment income, the Fund provides a Section 19(a) notice of the best estimate of its distribution sources at that time. These estimates may not match the final tax characterization (for the full year’s distributions) contained in shareholders’ 1099-DIV forms after the end of the year.

 

A Fund’s investments in securities of foreign issuers are subject to risks not usually associated with owning securities of U.S. issuers. These risks can include fluctuations in foreign currencies, foreign currency exchange controls, social, political and economic instability, differences in securities regulation and trading, expropriation or nationalization of assets, and foreign taxation issues.

 

A Fund’s investments in preferred stocks and bonds of below investment grade quality (commonly referred to as “high yield” or “junk bonds”), if any, are predominately speculative because of the credit risk of their issuers.

 

An investment by a Fund in REITs will subject it to various risks. The first, real estate industry risk, is the risk that the REIT share prices will decline because of adverse developments affecting the real estate industry and real property values. In general, real estate values can be affected by a variety of factors, including supply and demand for properties, the economic health of the country or of different regions, and the strength of specific industries that rent properties. The second, investment style risk, is the risk that returns from REITs—which typically are small or medium capitalization stocks—will trail returns from the overall stock market. The third, interest rate risk, is the risk that changes in interest rates may hurt real estate values or make REIT shares less attractive than other income-producing investments. Credit risk is the risk that an issuer of a preferred or debt security will become unable to meet its obligation to make dividend, interest and principal payments.

 

Interest rate risk is the risk that preferred stocks paying fixed dividend rates and fixed-rate debt securities will decline in value because of changes in market interest rates. When interest rates rise the value of such securities generally will fall. Derivative transactions (such as futures contracts and options thereon, options, swaps, and short sales) subject a Fund to increased risk of principal loss due to imperfect correlation or unexpected price or interest rate movements. Compared to investment companies that focus only on large companies, the Fund’s share price may be more volatile because it also invests in small and medium capitalization companies.

 

Past performance is no guarantee of future results.

 

12 www.cloughglobal.com

 

 

 

Clough Global Opportunities Fund Portfolio Allocation
  April 30, 2020 (Unaudited)

 

Top 10 Equity Holdings(a)(d) % of Total Portfolio
   
1. PennyMac Financial Services, Inc. 3.39%
2. Micron Technology, Inc. 3.32%
3. Alibaba Group Holding, Ltd. 2.87%
4. Bank of America Corp. 2.55%
5. Citigroup, Inc. 2.51%
6. Microsoft Corp. 2.45%
7. JPMorgan Chase & Co. 2.25%
8. Amazon.com, Inc. 2.10%
9. Regeneron Pharmaceuticals, Inc. 1.90%
10. Microchip Technology, Inc. 1.73%
   
Global Securities Holdings(a) % of Total Portfolio
   
United States 65.27%
China 18.37%
U.S. Multinationals(b) 6.66%
European Economic Community 2.89%
Hong Kong 2.00%
Taiwan 1.37%
Switzerland 1.35%
India 1.10%
United Kingdom 0.91%
Canada 0.77%
Other -0.67%
TOTAL INVESTMENTS 100.00%

 

Asset Allocation(a) % of Total Portfolio
   
Common Stock - US 40.82%
Common Stock - Foreign 33.38%
Exchange Traded Funds -8.28%
Total Return Swap Contracts 4.07%
Total Equities 70.00%
   
Government L/T 17.31%
Corporate Debt 4.98%
Preferred Stock 0.51%
Total Fixed Income 22.81%
   
Future 2.89%
Other (Cash) 2.32%
Short-Term Investments 1.53%
Purchased Options 0.45%
Warrant 0.01%
TOTAL INVESTMENTS 100.00%

 

  Long Short Gross Net
  Exposure Exposure Exposure Exposure
Country Allocation(c) % TNA %TNA %TNA %TNA
         
United States 107.1% -6.4% 113.5% 100.7%
China 27.1% 0.0% 27.1% 27.1%
U.S. Multinationals(b) 26.8% -17.0% 43.8% 9.8%
Hong Kong 3.0% 0.0% 3.0% 3.0%
Taiwan 2.0% 0.0% 2.0% 2.0%
Switzerland 2.0% 0.0% 2.0% 2.0%
India 1.6% 0.0% 1.6% 1.6%
United Kingdom 1.3% 0.0% 1.3% 1.3%
Canada 1.1% 0.0% 1.1% 1.1%
Other 1.9% -2.9% 4.8% -1.0%
TOTAL INVESTMENTS 173.9% -26.3% 200.2% 147.6%

 

(a) Percentages calculated based on total portfolio, including securities sold short, cash balances, market value of futures, and notional value of return swaps.
(b) U.S. Multinationals – has more than 50% of revenues derived outside the U.S.
(c) Percentages calculated based on net assets, including securities sold short, cash balances, market value of futures, and notional value of return swaps.
(d) Only long equity and equity-related positions are listed.

 

Semi-Annual Report  |  April 30, 2020 13

 

 

 

Clough Global Dividend and Income Fund Statement of Investments
  April 30, 2020 (Unaudited)

  

    Shares     Value  
COMMON STOCKS 90.10%            
Communication Services 2.11%                
Tencent Holdings, Ltd.     32,000     $ 1,721,251  
                 
Consumer Discretionary 6.42%                
DR Horton, Inc.(a)     27,200       1,284,384  
Lennar Corp. - Class A(a)     25,400       1,271,778  
Li Ning Co., Ltd.     255,000       804,224  
Melco Resorts & Entertainment, Ltd. - ADR(a)     52,500       830,550  
Sands China, Ltd.     197,600       813,085  
Service Corp. International(a)(b)     6,600       242,484  
              5,246,505  
                 
Consumer Staples 1.71%                
Sun Art Retail Group, Ltd.     836,000       1,393,244  
                 
Energy 0.58%                
Scorpio Tankers, Inc.     21,800       477,202  
                 
Financials 33.07%                
AGNC Investment Corp.(a)     117,100       1,454,382  
AIA Group, Ltd.     268,200       2,489,131  
Bank of America Corp.(a)(b)     151,691       3,648,168  
Barings BDC, Inc.(a)     202,900       1,371,604  
Citigroup, Inc.(a)(b)     74,730       3,628,889  
First American Financial Corp.     24,900       1,148,388  
Golub Capital BDC, Inc.(a)     92,400       948,024  
HDFC Bank, Ltd.     102,178       1,363,099  
JPMorgan Chase & Co.(a)     43,500       4,165,560  
PennyMac Financial Services, Inc.(a)     141,100       4,256,987  
Ping An Insurance Group Co. of China, Ltd. - Class H     73,200       752,537  
Solar Capital, Ltd.(a)     34,600       521,076  
TPG Specialty Lending, Inc.(a)     77,100       1,269,066  
              27,016,911  
                 
Health Care 7.55%                
Amgen, Inc.(a)     7,564       1,809,460  
Eli Lilly & Co.(a)(b)     7,413       1,146,346  
Gilead Sciences, Inc.(a)(b)     9,700       814,800  
Thermo Fisher Scientific, Inc.(a)(b)     3,251       1,088,045  
Zimmer Biomet Holdings, Inc.(a)(b)     3,970       475,209  
Zoetis, Inc.(a)(b)     6,410       828,877  
              6,162,737  
                 
Information Technology 28.82%                
Apple, Inc.(a)(b)     15,900       4,671,420  
Infineon Technologies AG     20,162       374,504  
Intel Corp.(a)     25,600       1,535,488  
Lam Research Corp.(a)(b)     4,310       1,100,257  
Mastercard, Inc. - Class A(a)     8,749       2,405,713  
MediaTek, Inc.     64,000       893,178  
Microchip Technology, Inc.(a)     23,500       2,061,655  

 

    Shares     Value  
Information Technology (continued)                
Microsoft Corp.(a)(b)     24,734     $ 4,432,580  
NVIDIA Corp.(a)     5,760       1,683,533  
Samsung Electronics Co., Ltd.     18,265       749,518  
Silergy Corp.     19,940       801,315  
Taiwan Semiconductor                
Manufacturing Co., Ltd. -  Sponsored ADR     14,400       765,072  
Teradyne, Inc.     11,500       719,210  
Visa, Inc. - Class A(a)(b)     7,559       1,350,944  
              23,544,387  
                 
Real Estate 9.84%                
Community Healthcare Trust, Inc.(a)     115,500       4,296,600  
KWG Group Holdings, Ltd.     594,500       875,742  
Longfor Properties Co., Ltd.     149,000       754,370  
Physicians Realty Trust(a)     59,600       919,032  
SBA Communications Corp.(a)     4,120       1,194,470  
              8,040,214  
                 
TOTAL COMMON STOCKS                
(Cost $72,364,703)             73,602,451  
                 
PREFERRED STOCKS 1.55%                
Gabelli Equity Trust, Inc.                
Series K, Perpetual Maturity 5.000%(a)(b)(c)     27,100       682,378  
Trinity Capital, Inc., 01/16/2025 7.000%(a)(d)     22,400       585,200  
                 
TOTAL PREFERRED STOCKS                
(Cost $1,237,500)             1,267,578  
                 
RIGHTS 0.04%                
Golub Capital BDC, Inc., Strike Price $1.32, Expires 5/7/2020(a)     47,375       30,486  
                 
TOTAL RIGHTS                
(Cost $0)             30,486  
                 
Underlying Security/Expiration Date/Exercise Price/Notional Amount   Contracts     Value  
PURCHASED OPTIONS 0.38%                
Put Options Purchased 0.38%                
S&P 500® Index                
07/17/20, $2,700, $9,319,776     32       313,120  
                 
Total Put Options Purchased                
(Cost $311,592)             313,120  

 

14 www.cloughglobal.com

 

 

 

Clough Global Dividend and Income Fund Statement of Investments
  April 30, 2020 (Unaudited)

 

    Principal        
Description/Maturity Date/Rate   Amount     Value  
CORPORATE BONDS 17.80%            
Agile Group Holdings, Ltd.                
11/23/2020, 9.500%(e)   $ 250,000     $ 254,109  
Amgen, Inc.                
02/21/2030, 2.450%(a)(b)     400,000       413,884  
AstraZeneca PLC                
01/17/2029, 4.000%(a)(b)     400,000       470,811  
BankUnited, Inc.                
11/17/2025, 4.875%(a)(b)     750,000       800,130  
Boston Scientific Corp.                
03/01/2029, 4.000%(a)(b)     400,000       449,230  
Broadcom, Inc.                
04/15/2030, 5.000%(d)     300,000       336,595  
Carvana Co.                
10/01/2023, 8.875%(d)     500,000       491,875  
Centene Corp.                
01/15/2025, 4.750%     250,000       257,137  
01/15/2025, 4.750%(d)     160,000       164,568  
Eli Lilly and Co.                
03/15/2029, 3.375%(a)(b)     400,000       456,405  
Fifth Third Bancorp                
Series J, Perpetual Maturity, 3M US L + 3.129%(a)(b)(c)(f)     700,000       585,564  
Goldman Sachs Capital II                
Perpetual Maturity, 3M US L + 0.768%(a)(b)(c)(f)     828,000       669,247  
Healthcare Realty Trust, Inc.                
01/15/2028, 3.625%     400,000       400,383  
Home Depot, Inc.                
09/15/2056, 3.500%(a)(b)     500,000       565,512  
JPMorgan Chase & Co.                
Series II, Perpetual Maturity, 1D US SOFR + 2.745%(c)(f)     200,000       174,125  
Marriott International, Inc.                
03/01/2021, 2.875%     300,000       294,204  
Massachusetts Mutual Life Insurance Co.                
04/15/2050, 3.375%(d)     300,000       308,247  
Mellon Capital IV                
Series 1, Perpetual Maturity, 3M US L + 0.565%(a)(b)(c)(f)     585,000       527,521  
Micron Technology, Inc.                
02/06/2029, 5.327%(a)     1,000,000       1,147,015  
MidAmerican Energy Co.                
09/15/2043, 4.800%(a)     500,000       665,677  
NortonLifeLock, Inc.                
04/15/2025, 5.000%(d)     600,000       606,750  
PulteGroup, Inc.                
03/01/2026, 5.500%     300,000       320,865  
Seagate HDD Cayman                
06/01/2027, 4.875%     200,000       208,883  
Sunac China Holdings, Ltd.                
04/19/2023, 8.350%(e)     750,000       748,255  
Times China Holdings, Ltd.                
06/04/2021, 7.850%(e)     500,000       507,583  

 

    Principal        
Description/Maturity Date/Rate   Amount     Value  
CORPORATE BONDS (continued)            
Toll Brothers Finance Corp.                
11/01/2029, 3.800%   $ 250,000     $ 235,325  
TPG Specialty Lending, Inc.                
11/01/2024, 3.875%(a)(b)     1,500,000       1,380,524  
USB Capital IX                
Perpetual Maturity, 3M US L + 1.020%(a)(b)(c)(f)     770,000       625,044  
Wisconsin Public Service Corp.                
11/01/2044, 4.752%     365,000       477,252  
                 
TOTAL CORPORATE BONDS                
(Cost $14,946,930)             14,542,720  
                 
ASSET-BACKED SECURITIES 0.09%                
United States Small Business Administration                
Series 2008-20L, Class 1, 12/01/2028, 6.220%(a)(b)     66,025       73,785  
                 
TOTAL ASSET-BACKED SECURITIES                
(Cost $66,024)             73,785  
                 
GOVERNMENT & AGENCY OBLIGATIONS 47.05%                
U.S. Treasury Bonds                
02/15/2029, 5.250%(a)     1,710,000       2,394,200  
11/15/2049, 2.375%     2,300,000       2,910,758  
U.S. Treasury Notes                
08/15/2020, 1.500%(a)     1,000,000       1,004,092  
09/30/2020, 1.375%(a)     2,000,000       2,010,547  
11/15/2020, 1.750%(a)     5,000,000       5,044,043  
12/31/2020, 2.500%(a)     3,000,000       3,047,285  
01/31/2021, 2.500%     1,500,000       1,526,485  
02/28/2022, 1.125%(a)     8,138,000       8,276,441  
02/28/2023, 2.625%(a)     1,900,000       2,027,656  
02/28/2025, 1.125%     3,200,000       3,320,000  
02/28/2027, 1.125%     6,600,000       6,867,094  
                 
TOTAL GOVERNMENT & AGENCY OBLIGATIONS                
(Cost $38,243,236)             38,428,601  

 

    Shares     Value  
SHORT-TERM INVESTMENTS 1.98%            
Money Market Funds 1.98%                
BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (0.116% 7-day yield)     1,616,859       1,616,859  
                 
TOTAL SHORT-TERM INVESTMENTS                
(Cost $1,616,859)             1,616,859  

 

Semi-Annual Report  |  April 30, 2020 15

 

 

 

Clough Global Dividend and Income Fund Statement of Investments
  April 30, 2020 (Unaudited)

 

    Value  
Total Investments - 158.99%        
(Cost $128,786,844)   $ 129,875,600  
         
Liabilities in Excess of Other Assets - (58.99%)(g)     (48,189,018 )
         
NET ASSETS - 100.00%   $ 81,686,582  

 

SCHEDULE OF SECURITIES SOLD SHORT(h)   Shares     Value  
COMMON STOCKS (14.25%)            
Consumer Discretionary (0.53%)                
Booking Holdings, Inc.     (293 )     (433,807 )
                 
Financials (2.72%)                
Deutsche Bank AG     (203,600 )     (1,508,676 )
Mediobanca Banca di Credito                
Finanziario SpA     (40,686 )     (235,770 )
Societe Generale S.A.     (8,443 )     (131,938 )
UniCredit SpA     (44,837 )     (345,369 )
              (2,221,753 )
                 
Health Care (6.26%)                
Alexion Pharmaceuticals, Inc.     (14,600 )     (1,569,062 )
Bruker Corp.     (11,300 )     (444,316 )
Charles River Laboratories                
International, Inc.     (6,720 )     (972,182 )
IQVIA Holdings, Inc.     (7,540 )     (1,075,129 )
PRA Health Sciences, Inc.     (10,960 )     (1,057,640 )
              (5,118,329 )
                 
Information Technology (4.74%)                
Cognizant Technology Solutions Corp. - Class A     (5,100 )     (295,902 )
Corning, Inc.     (18,700 )     (411,587 )
International Business Machines Corp.     (13,430 )     (1,686,271 )
ON Semiconductor Corp.     (23,300 )     (373,848 )
Paycom Software, Inc.     (1,360 )     (354,987 )
Paylocity Holding Corp.     (3,200 )     (366,496 )
Qualys, Inc.     (3,600 )     (379,584 )
              (3,868,675 )
                 
TOTAL COMMON STOCKS                
(Proceeds $10,963,744)             (11,642,564 )
                 
EXCHANGE TRADED FUNDS (1.00%)                
SPDR® S&P® Regional Banking ETF     (21,400 )     (815,982 )
                 
              Value  
TOTAL EXCHANGE TRADED FUNDS                
(Proceeds $645,403)           $ (815,982 )
                 
TOTAL SECURITIES SOLD SHORT                
(Proceeds $11,609,147)           $ (12,458,546 )

 

Investment Abbreviations:

1D FEDEF - Federal Funds Effective Rate (Daily)

LIBOR - London Interbank Offered Rate

SOFR - Secured Overnight Financing Rate

 

FEDEF Rates:

1D  FEDEF - 1 Day FEDEF as of April 30, 2020 was 0.05%

 

Libor Rates:

3M  US L - 3 Month LIBOR as of April 30, 2020 was 0.56%

1D  SOFR as of April 30, 2020 was 0.04%

 

(a) Pledged security; a portion or all of the security is pledged as collateral for securities sold short, total return swap contracts, or borrowings. As of April 30, 2020, the aggregate value of those securities was $84,734,519, representing 103.73% of net assets. (See Note 1 and Note 6)
(b) Loaned security; a portion or all of the security is on loan as of April 30, 2020.
(c) This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(d) Security is exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of April 30, 2020, these securities had an aggregate value of $2,493,235 or 3.05% of net assets.
(e) Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts securities offered and sold outside of the United States from registration. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees. As of April 30, 2020, the aggregate value of those securities was $1,509,947, representing 1.85% of net assets.
(f) Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at April 30, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above.
(g) Includes cash which is being held as collateral for total return swap contracts and securities sold short.
(h) Non-income producing security.

 

For Fund compliance purposes, the Fund’s sector classifications refer to any one of the sector sub-classifications used by one or more widely recognized market indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine sector sub-classifications for reporting ease. Sectors are shown as a percent of net assets. These sector classifications are unaudited. 

 

16 www.cloughglobal.com

 

 

 

Clough Global Dividend and Income Fund Statement of Investments
    April 30, 2020 (Unaudited)

 

FUTURES CONTRACTS

 

                          Unrealized  
                Expiration   Notional     Appreciation/  
Description   Counterparty   Position   Contracts   Date   Value     (Depreciation)  
EURODOLLAR 90 DAY   Morgan Stanley   Long   682   December 2020   $ 169,962,925     $ 79,086  
EURODOLLAR 90 DAY   Morgan Stanley   Long   1,930   June 2021     481,269,625       3,516,413  
                    $ 651,232,550     $ 3,595,499  

 

TOTAL RETURN SWAP CONTRACTS

 

    Reference   Notional     Floating Rate   Floating   Termination         Net Unrealized  
Counter Party   Entity/Obligation   Amount     Paid by the Fund   Rate Index   Date   Value     Appreciation  
Morgan Stanley   Banco Santander SA   $ (171,225 )   1D FEDEF - 50 bps   1D FEDEF   05/20/2020   $ (95,356 )   $ 75,869  
Morgan Stanley   Kweichow Moutai Co., Ltd.     1,895,084     1D FEDEF - 250 bps   1D FEDEF   05/29/2020     1,983,237       88,153  
Morgan Stanley   Sany Heavy Industry Co., Ltd.     1,493,642     1D FEDEF - 250 bps   1D FEDEF   05/29/2020     1,536,980       43,338  
        $ 3,217,501                 $ 3,424,861     $ 207,360  
                                         
    Reference     Notional     Floating Rate   Floating   Termination             Net Unrealized  
Counter Party   Entity/Obligation     Amount     Paid by the Fund   Rate Index   Date     Value       Depreciation  
Morgan Stanley   Wuliangye Yibin Co., Ltd.   $ 774,443     1D FEDEF - 255 bps   1D FEDEF   05/04/2022   $ 768,172     $ (6,271 )
TOTAL       $ 3,991,944                 $ 4,193,033     $ 201,089  

 

See Notes to the Financial Statements.

 

Semi-Annual Report | April 30, 2020 17

 

 

 

Clough Global Equity Fund Statement of Investments
  April 30, 2020 (Unaudited)

 

    Shares     Value  
COMMON STOCKS 130.14%            
Communication Services 7.07%                
Facebook, Inc. - Class A(a)(b)     9,700     $ 1,985,687  
GCI Liberty, Inc. - Class A(a)(b)     8,800       535,304  
Netflix, Inc.(a)(b)     5,319       2,233,182  
Tencent Holdings, Ltd.     55,400       2,979,916  
T-Mobile US, Inc.(a)(b)(c)     30,920       2,714,776  
              10,448,865  
                 
Consumer Discretionary 21.61%                
Alibaba Group Holding, Ltd. -  Sponsored ADR(a)(b)     10,370       2,101,688  
Alibaba Group Holding, Ltd.(a)     161,150       4,095,008  
Amazon.com, Inc.(a)(b)(c)     2,500       6,185,000  
Carnival Corp.     81,400       1,294,260  
Carvana Co.(a)(b)     27,870       2,232,666  
DR Horton, Inc.(b)     49,100       2,318,502  
JD.com, Inc. - ADR(a)(b)     86,600       3,732,460  
Lennar Corp. - Class A(b)     45,600       2,283,192  
Li Ning Co., Ltd.     271,500       856,262  
Meituan Dianping - Class B(a)     191,300       2,561,360  
Melco Resorts & Entertainment, Ltd. - ADR(b)     93,600       1,480,752  
Royal Caribbean Cruises Ltd.(b)     27,600       1,290,852  
Sands China, Ltd.     360,800       1,484,620  
              31,916,622  
                 
Consumer Staples 1.62%                
Sun Art Retail Group, Ltd.     1,436,500       2,394,012  
                 
Energy 0.56%                
Scorpio Tankers, Inc.(b)     37,700       825,253  
                 
Financials 26.75%                
AGNC Investment Corp.(b)     224,100       2,783,322  
AIA Group, Ltd.     306,400       2,843,661  
Bank of America Corp.(b)(c)     236,205       5,680,730  
Citigroup, Inc.(b)(c)     120,419       5,847,547  
First American Financial Corp.(b)     45,700       2,107,684  
Golub Capital BDC, Inc.(b)     150,109       1,540,118  
HDFC Bank, Ltd.     175,164       2,336,764  
JPMorgan Chase & Co.(b)(c)     49,150       4,706,604  
PennyMac Financial Services, Inc.(b)     247,600       7,470,092  
Ping An Insurance Group Co. of China, Ltd. - Class H     128,800       1,324,135  
Solar Capital, Ltd.(b)     39,400       593,364  
TPG Specialty Lending, Inc.(b)     137,800       2,268,188  
              39,502,209  
                 
Health Care 22.78%                
1Life Healthcare, Inc.(a)(b)     35,000       863,450  
Alphamab Oncology(a)(d)     6,922       15,179  
Amgen, Inc.(b)     8,214       1,964,953  

 

    Shares     Value  
Health Care (continued)                
Amphivena Therapeutics, Inc. -  Series C(a)(d)(e)(f)(g)     334,425     $ 1,199,997  
Apellis Pharmaceuticals, Inc.(a)(b)(c)     77,397       2,652,395  
Arcellx, Inc.(a)(d)(e)(f)(g)     234,345       365,813  
Centrexion Therapeutics(a)(d)(e)(f)(g)     66,719       723,701  
Centrexion Therapeutics Corp.(a)(e)(f)(g)     4,336       47,032  
CRISPR Therapeutics AG(a)(b)     51,180       2,518,056  
Galapagos NV - Sponsored ADR(a)(b)(c)     3,366       742,035  
Gilead Sciences, Inc.(b)(c)     17,000       1,428,000  
Gossamer Bio, Inc.(a)(b)     87,821       1,143,429  
GW Pharmaceuticals PLC -  ADR(a)(b)(c)     20,998       2,102,740  
Idorsia, Ltd.(a)(d)     40,561       1,173,233  
Mirati Therapeutics, Inc.(a)(b)(c)     22,400       1,904,896  
Regeneron Pharmaceuticals, Inc.(a)(b)(c)     7,835       4,120,270  
SmileDirectClub, Inc.(a)(b)     168,900       1,303,908  
Teladoc Health, Inc.(a)(b)(c)     12,204       2,008,656  
Thermo Fisher Scientific, Inc.(b)(c)     5,634       1,885,587  
Veracyte, Inc.(a)(b)(c)     34,310       925,341  
Vertex Pharmaceuticals, Inc.(a)(b)(c)     5,610       1,409,232  
Zai Lab, Ltd. - ADR(a)(b)(c)     38,390       2,407,821  
Zoetis, Inc.(b)     5,710       738,360  
              33,644,084  
                 
Industrials 0.94%                
Uber Technologies, Inc.(a)     45,700       1,383,339  
                 
Information Technology 43.37%                
Adobe, Inc.(a)(b)     6,370       2,252,687  
Apple, Inc.(b)(c)     10,840       3,184,792  
Cadence Design Systems, Inc.(a)(b)     16,930       1,373,531  
Crowdstrike Holdings, Inc. - Class A(a)(b)     21,200       1,434,392  
GDS Holdings, Ltd. - ADR(a)(b)(c)     31,330       1,795,836  
Infineon Technologies AG     38,595       716,892  
Intel Corp.(b)(c)     46,200       2,771,076  
Lam Research Corp.(b)(c)     7,775       1,984,802  
Mastercard, Inc. - Class A(b)     5,905       1,623,698  
MediaTek, Inc.     113,000       1,577,018  
Microchip Technology, Inc.(b)     42,600       3,737,298  
Micron Technology, Inc.(a)(b)(c)     153,473       7,349,822  
Microsoft Corp.(b)(c)     31,862       5,709,989  
NVIDIA Corp.(b)(c)     10,190       2,978,333  
Okta, Inc.(a)(b)(c)     10,400       1,573,520  
PayPal Holdings, Inc.(a)(b)(c)     24,530       3,017,190  
Qorvo, Inc.(a)(b)     14,900       1,460,647  
RingCentral, Inc. - Class A(a)(b)(c)     7,100       1,622,563  
salesforce.com, Inc.(a)(b)(c)     16,799       2,720,598  
Samsung Electronics Co., Ltd.     32,646       1,339,653  
ServiceNow, Inc.(a)(b)(c)     7,285       2,560,969  
Shopify, Inc. - Class A(a)     2,615       1,653,438  

 

18 www.cloughglobal.com

 

 

 

Clough Global Equity Fund Statement of Investments
  April 30, 2020 (Unaudited)

 

    Shares     Value  
Information Technology (continued)                
Silergy Corp.     35,130     $ 1,411,745  
Taiwan Semiconductor                
Manufacturing Co., Ltd. -  Sponsored ADR(b)     25,800       1,370,754  
Teradyne, Inc.     22,100       1,382,134  
Visa, Inc. - Class A(b)(c)     9,670       1,728,222  
Workday, Inc. - Class A(a)(b)     14,550       2,239,245  
Zoom Video Communications, Inc. - Class A(a)(b)(c)     11,000       1,486,870  
              64,057,714  
                 
Real Estate 5.44%                
Community Healthcare Trust, Inc.(b)     52,700       1,960,440  
KWG Group Holdings, Ltd.     732,500       1,079,026  
Longfor Properties Co., Ltd.     265,000       1,341,664  
Physicians Realty Trust(b)     101,400       1,563,588  
SBA Communications Corp.(b)     7,220       2,093,223  
              8,037,941  
                 
TOTAL COMMON STOCKS                
(Cost $183,703,659)             192,210,039  
                 
PREFERRED STOCKS 0.12%                
Gabelli Equity Trust, Inc.                
Series K, Perpetual Maturity 5.000%(b)(h)     7,130       179,534  
                 
TOTAL PREFERRED STOCKS                
(Cost $178,250)             179,534  
                 
RIGHTS 0.03%                
Golub Capital BDC, Inc., Strike Price $1.32, Expires 5/7/2020(b)     69,152       44,499  
                 
TOTAL RIGHTS                
(Cost $0)             44,499  
                 
Underlying Security/Expiration Date/                
Exercise Price/Notional Amount     Contracts       Value  
PURCHASED OPTIONS 0.65%                
Put Options Purchased 0.65%                
S&P 500® Index                
07/17/20, $2,700, $17,765,823     61       596,885  
SPDR® S&P® Biotech ETF                
06/19/20, $85, $12,327,480     1,320       366,300  
                 
Total Put Options Purchased                
(Cost $1,139,222)             963,185  

 

    Principal        
Description/Maturity Date/Rate   Amount     Value  
GOVERNMENT & AGENCY OBLIGATIONS 26.70%      
U.S. Treasury Bonds                
02/15/2029, 5.250%(b)   $ 2,560,000     $ 3,584,300  
11/15/2049, 2.375%     3,100,000       3,923,195  
U.S. Treasury Notes                
05/31/2020, 1.500%(b)     3,000,000       3,003,466  
11/15/2020, 1.750%(b)     4,000,000       4,035,234  
12/31/2020, 2.500%(b)     3,000,000       3,047,285  
01/31/2021, 2.500%(b)     1,500,000       1,526,485  
02/28/2022, 1.125%(b)     6,000,000       6,102,070  
02/28/2023, 2.625%(b)     6,500,000       6,936,719  
02/28/2025, 1.125%(b)     3,000,000       3,112,500  
02/28/2027, 1.125%(b)     4,000,000       4,161,875  
                 
TOTAL GOVERNMENT & AGENCY OBLIGATIONS                
(Cost $39,133,278)             39,433,129  
                 
      Shares       Value  
SHORT-TERM INVESTMENTS 0.43%                
Money Market Funds 0.43%                
BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (0.116% 7-day yield)     638,559       638,559  
                 
TOTAL SHORT-TERM INVESTMENTS                
(Cost $638,559)             638,559  
                 
Total Investments - 158.07%                
(Cost $224,792,968)             233,468,945  
                 
Liabilities in Excess of Other Assets - (58.07%)(i)             (85,772,218 )
                 
NET ASSETS - 100.00%           $ 147,696,727  
                 
SCHEDULE OF SECURITIES SOLD                
SHORT (a)     Shares       Value  
COMMON STOCKS (14.00%)                
Consumer Discretionary (0.52%)                
Booking Holdings, Inc.     (516 )     (763,974 )
                 
Financials (2.64%)                
Deutsche Bank AG     (356,200 )     (2,639,442 )
Mediobanca Banca di Credito Finanziario SpA     (67,513 )     (391,230 )
Societe Generale S.A.     (14,196 )     (221,839 )
UniCredit SpA     (84,636 )     (651,931 )
              (3,904,442 )
                 
Health Care (6.13%)                
Alexion Pharmaceuticals, Inc.     (26,100 )     (2,804,967 )
Bruker Corp.     (19,520 )     (767,527 )

 

Semi-Annual Report  |  April 30, 2020 19

 

 

 

Clough Global Equity Fund Statement of Investments
  April 30, 2020 (Unaudited)

 

SCHEDULE OF SECURITIES SOLD SHORT (a) (continued)   Shares     Value  
Health Care (continued)            
Charles River Laboratories International, Inc.     (11,860 )   $ (1,715,786 )
IQVIA Holdings, Inc.     (13,270 )     (1,892,169 )
PRA Health Sciences, Inc.     (19,320 )     (1,864,380 )
              (9,044,829 )
                 
Information Technology (4.71%)                
Cognizant Technology Solutions Corp. - Class A     (8,800 )     (510,576 )
Corning, Inc.     (33,400 )     (735,134 )
International Business Machines Corp.     (24,520 )     (3,078,731 )
ON Semiconductor Corp.     (41,300 )     (662,658 )
Paycom Software, Inc.     (2,430 )     (634,279 )
Paylocity Holding Corp.     (5,800 )     (664,274 )
Qualys, Inc.     (6,400 )     (674,816 )
              (6,960,468 )
                 
TOTAL COMMON STOCKS                
(Proceeds $19,450,698)             (20,673,713 )
                 
EXCHANGE TRADED FUNDS (12.10%)                
SPDR® S&P 500® ETF Trust     (56,650 )     (16,455,692 )
SPDR® S&P® Regional Banking ETF     (37,400 )     (1,426,062 )
                 
TOTAL EXCHANGE TRADED FUNDS                
(Proceeds $15,580,180)             (17,881,754 )
                 
TOTAL SECURITIES SOLD SHORT                
(Proceeds $35,030,878)           $ (38,555,467 )
                 
Investment Abbreviations:                
1D FEDEF - Federal Funds Effective Rate (Daily)                
                 
FEDEF Rates:                
1D FEDEF - 1 Day FEDEF as of April 30, 2020 was 0.05%  

 

(a) Non-income producing security.
(b) Pledged security; a portion or all of the security is pledged as collateral for securities sold short, total return swap contracts, or borrowings. As of April 30, 2020, the aggregate value of those securities was $175,686,820, representing 118.95% of net assets. (See Note 1 and Note 6)
(c) Loaned security; a portion or all of the security is on loan as of April 30, 2020.
(d) All or a portion of the security is exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of April 30, 2020, these securities had an aggregate value of $2,641,350 or 1.79% of net assets.

 

(e) Private Placement; these securities may only be resold in transactions exempt from registration under the Securities Act of 1933. As of April 30, 2020, these securities had an aggregate value of $2,336,543 or 1.58% of net assets.
(f) As a result of the use of significant unobservable inputs to determine fair value, these investments have been classified as Level 3 assets. (See Note 1)
(g) Fair valued security; valued by management in accordance with procedures approved by the Board. As of April 30, 2020, these securities had an aggregate value of $2,336,543 or 1.58% of total net assets.
(h) This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.

(i) Includes cash which is being held as collateral for total return swap contracts and securities sold short.

  

For Fund compliance purposes, the Fund’s sector classifications refer to any one of the sector sub-classifications used by one or more widely recognized market indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine sector sub-classifications for reporting ease. Sectors are shown as a percent of net assets. These sector classifications are unaudited.

 

20 www.cloughglobal.com

 

 

 

Clough Global Equity Fund Statement of Investments
  April 30, 2020 (Unaudited)

 

FUTURES CONTRACTS

 

                          Unrealized  
                Expiration   Notional     Appreciation/  
Description   Counterparty   Position   Contracts   Date   Value     (Depreciation)  
EURODOLLAR 90 DAY   Morgan Stanley   Long   1,145   December 2020   $ 285,348,313     $ 132,777  
EURODOLLAR 90 DAY   Morgan Stanley   Long   3,290   June 2021     820,402,626       6,150,647  
                    $ 1,105,750,939     $ 6,283,424  

 

TOTAL RETURN SWAP CONTRACTS

 

    Reference   Notional     Floating Rate   Floating   Termination         Net Unrealized  
Counter Party   Entity/Obligation   Amount     Paid by the Fund   Rate Index   Date   Value     Appreciation  
Morgan Stanley   Banco Santander SA   $ (292,822 )   1D FEDEF -50 bps   1D FEDEF   05/20/2020   $ (163,074 )   $ 129,748  
Morgan Stanley   Kweichow Moutai Co., Ltd.     3,351,498     1D FEDEF - 250 bps   1D FEDEF   05/29/2020     3,508,804       157,306  
Morgan Stanley   Sany Heavy Industry Co., Ltd.     2,641,046     1D FEDEF - 250 bps   1D FEDEF   05/29/2020     2,717,580       76,534  
        $ 5,699,722                 $ 6,063,310     $ 363,588  
                                         
    Reference     Notional     Floating Rate   Floating   Termination             Net Unrealized  
Counter Party   Entity/Obligation     Amount     Paid by the Fund   Rate Index   Date     Value       Depreciation  
Morgan Stanley   Wuliangye Yibin Co., Ltd.   $ 1,420,783     1D FEDEF - 255 bps   1D FEDEF   05/04/2022   $ 1,409,277     $ (11,506 )
Morgan Stanley   Zoomlion Heavy Industry Science     1,342,610     1D FEDEF - 250 bps   1D FEDEF   05/29/2020     1,337,791       (4,819 )
        $ 2,763,393                 $ 2,747,068     $ (16,325 )
TOTAL       $ 8,463,115                 $ 8,810,378     $ 347,263  

 

See Notes to the Financial Statements.

 

Semi-Annual Report  |  April 30, 2020 21

 

 

 

Clough Global Opportunities Fund Statement of Investments
  April 30, 2020 (Unaudited)

 

    Shares     Value  
COMMON STOCKS 123.58%            
Communication Services 7.60%                
Facebook, Inc. - Class A(a)(b)(c)     19,700     $ 4,032,787  
GCI Liberty, Inc. - Class A(a)(b)(c)     44,272       2,693,066  
Netflix, Inc.(a)(b)     10,694       4,489,876  
Tencent Holdings, Ltd.     111,500       5,997,484  
T-Mobile US, Inc.(a)(b)(c)     59,390       5,214,442  
              22,427,655  
                 
Consumer Discretionary 19.43%                
               
Alibaba Group Holding, Ltd. - Sponsored ADR(a)(b)     21,100       4,276,337  
Alibaba Group Holding, Ltd.(a)     324,820       8,254,052  
Amazon.com, Inc.(a)(b)(c)     3,700       9,153,800  
Carnival Corp.     164,200       2,610,780  
Carvana Co.(a)(b)     56,260       4,506,989  
DR Horton, Inc.(b)     78,200       3,692,604  
JD.com, Inc. - ADR(a)(b)     168,400       7,258,040  
Lennar Corp. - Class A(b)     72,200       3,615,054  
Li Ning Co., Ltd.     552,000       1,740,909  
Meituan Dianping - Class B(a)     384,800       5,152,176  
Melco Resorts & Entertainment, Ltd. - ADR(b)     188,900       2,988,398  
Royal Caribbean Cruises Ltd.(b)     55,600       2,600,412  
Sands China, Ltd.     364,000       1,497,788  
              57,347,339  
                 
Consumer Staples 1.64%                
Sun Art Retail Group, Ltd.     2,904,500       4,840,521  
                 
Energy 0.57%                
Scorpio Tankers, Inc.(b)     76,200       1,668,018  
                 
Financials 25.65%                
AGNC Investment Corp.(b)     450,200       5,591,484  
AIA Group, Ltd.     619,400       5,748,575  
Bank of America Corp.(b)(c)     461,910       11,108,936  
Barings BDC, Inc.(b)     242,000       1,635,920  
Citigroup, Inc.(b)(c)     225,127       10,932,167  
First American Financial Corp.(b)     92,100       4,247,652  
Golub Capital BDC, Inc.(b)     105,757       1,085,067  
HDFC Bank, Ltd.     360,606       4,810,641  
JPMorgan Chase & Co.(b)(c)     102,300       9,796,248  
PennyMac Financial Services, Inc.(b)     490,137       14,787,433  
Ping An Insurance Group Co. of China, Ltd. - Class H     263,800       2,712,010  
Solar Capital, Ltd.(b)     68,985       1,038,914  
TPG Specialty Lending, Inc.(b)     133,927       2,204,439  
              75,699,486  
                 
Health Care 22.00%                
1Life Healthcare, Inc.(a)(b)     70,200       1,731,834  
Alphamab Oncology(a)(d)     14,036       30,779  

 

    Shares     Value  
Health Care (continued)                
Amgen, Inc.(b)(c)     16,475     $ 3,941,149  
Amphivena Therapeutics, Inc. -  Series C(a)(d)(e)(f)(g)     780,326       2,799,997  
Apellis Pharmaceuticals, Inc.(a)(b)(c)     156,301       5,356,435  
Arcellx, Inc.(a)(d)(e)(f)(g)     538,792       841,054  
Centrexion Therapeutics(a)(d)(e)(f)(g)     217,952       2,364,125  
Centrexion Therapeutics Corp.(a)(e)(f)(g)     14,166       153,659  
CRISPR Therapeutics AG(a)(b)     119,338       5,871,430  
Galapagos NV - Sponsored ADR(a)(b)(c)     6,819       1,503,248  
Gilead Sciences, Inc.(b)(c)     33,900       2,847,600  
Gossamer Bio, Inc.(a)(b)     180,188       2,346,048  
GW Pharmaceuticals PLC -  ADR(a)(b)(c)     39,434       3,948,921  
Mirati Therapeutics, Inc.(a)(b)(c)     45,300       3,852,312  
Regeneron Pharmaceuticals, Inc.(a)(b)(c)     15,740       8,277,351  
SmileDirectClub, Inc.(a)(b)     338,300       2,611,676  
Teladoc Health, Inc.(a)(b)(c)     24,823       4,085,618  
Thermo Fisher Scientific, Inc.(b)(c)     11,332       3,792,594  
Vertex Pharmaceuticals, Inc.(a)(b)     11,368       2,855,642  
Zai Lab, Ltd. - ADR(a)(b)(c)     77,420       4,855,782  
Zoetis, Inc.(b)(c)     6,670       862,498  
              64,929,752  
                 
Industrials 0.94%                
Uber Technologies, Inc.(a)     91,900       2,781,813  
                 
Information Technology 40.46%                
Adobe, Inc.(a)(b)     12,820       4,533,665  
Apple, Inc.(b)(c)     21,910       6,437,158  
Cadence Design Systems, Inc.(a)(b)     34,110       2,767,344  
Crowdstrike Holdings, Inc. - Class A(a)(b)     42,800       2,895,848  
GDS Holdings, Ltd. - ADR(a)(b)(c)     63,290       3,627,783  
Infineon Technologies AG     77,543       1,440,340  
Intel Corp.(b)     72,900       4,372,542  
Lam Research Corp.(b)(c)     10,860       2,772,341  
Mastercard, Inc. - Class A(b)     8,697       2,391,414  
MediaTek, Inc.     229,000       3,195,904  
Microchip Technology, Inc.(b)     85,800       7,527,234  
Micron Technology, Inc.(a)(b)(c)     301,973       14,461,487  
Microsoft Corp.(b)(c)     59,564       10,674,464  
NVIDIA Corp.(b)     20,430       5,971,280  
Okta, Inc.(a)(b)(c)     21,310       3,224,203  
PayPal Holdings, Inc.(a)(b)(c)     49,350       6,070,050  
Qorvo, Inc.(a)(b)     29,910       2,932,077  
RingCentral, Inc. - Class A(a)(b)(c)     14,200       3,245,126  
salesforce.com, Inc.(a)(b)(c)     33,471       5,420,629  
Samsung Electronics Co., Ltd.     65,907       2,704,543  
ServiceNow, Inc.(a)(b)(c)     14,726       5,176,778  
Shopify, Inc. - Class A(a)     5,280       3,338,491  
Silergy Corp.     58,000       2,330,806  

 

22 www.cloughglobal.com

 

 

 

Clough Global Opportunities Fund Statement of Investments
  April 30, 2020 (Unaudited)

 

    Shares     Value  
Information Technology (continued)                
Taiwan Semiconductor                
Manufacturing Co., Ltd. -  Sponsored ADR(b)     52,000     $ 2,762,760  
Teradyne, Inc.     44,300       2,770,522  
Visa, Inc. - Class A(b)(c)     7,514       1,342,902  
Workday, Inc. - Class A(a)(b)     14,520       2,234,628  
Zoom Video Communications, Inc. - Class A(a)(b)(c)     20,600       2,784,502  
              119,406,821  
                 
Real Estate 5.29%                
Community Healthcare Trust, Inc.(b)     89,311       3,322,369  
KWG Group Holdings, Ltd.     1,473,000       2,169,837  
Longfor Properties Co., Ltd.     534,500       2,706,111  
Physicians Realty Trust(b)     207,400       3,198,108  
SBA Communications Corp.(b)     14,470       4,195,142  
              15,591,567  
                 
TOTAL COMMON STOCKS                
(Cost $348,009,680)             364,692,972  
                 
PREFERRED STOCKS 0.76%                
Gabelli Equity Trust, Inc.                
Series K, Perpetual Maturity 5.000%(b)(h)     12,683       319,358  
Trinity Capital, Inc., 01/16/2025 7.000%(b)(d)     73,600       1,922,800  
                 
TOTAL PREFERRED STOCKS                
(Cost $2,157,075)             2,242,158  
                 
RIGHTS 0.02%                
Golub Capital BDC, Inc., Strike Price $1.32, Expires 5/7/2020(b)     66,139       42,560  
                 
TOTAL RIGHTS                
(Cost $0)             42,560  

 

Underlying Security/Expiration Date/            
Exercise Price/Notional Amount   Contracts     Value  
PURCHASED OPTIONS 0.66%            
Put Options Purchased 0.66%                
S&P 500® Index 07/17/20, $2,700, $35,822,889     123       1,203,555  
SPDR® S&P® Biotech ETF 06/19/20, $85, $24,841,740     2,660       738,150  
                 
Total Put Options Purchased                
(Cost $2,296,443)             1,941,705  

 

    Principal        
Description/Maturity Date/Rate   Amount     Value  
CORPORATE BONDS 7.36%            
Agile Group Holdings, Ltd.                
11/23/2020, 9.500%(i)   $ 750,000     $ 762,329  
Amgen, Inc.                
02/21/2030, 2.450%(b)     1,000,000       1,034,710  
Centene Corp.                
01/15/2025, 4.750%(b)     750,000       771,413  
Fifth Third Bancorp                
Series J, Perpetual Maturity, 3M US L + 3.129%(b)(h)(j)     1,500,000       1,254,780  
Goldman Sachs Capital II                
Perpetual Maturity, 3M US L + 0.768%(b)(h)(j)     2,356,000       1,904,284  
Healthcare Realty Trust, Inc.                
01/15/2028, 3.625%(b)     1,540,000       1,541,473  
Home Depot, Inc.                
09/15/2056, 3.500%(b)     1,200,000       1,357,229  
Marriott International, Inc.                
03/01/2021, 2.875%(b)     1,000,000       980,679  
Massachusetts Mutual Life Insurance Co.                
04/15/2050, 3.375%(d)     850,000       873,367  
NortonLifeLock, Inc.                
04/15/2025, 5.000%(b)(d)     1,200,000       1,213,500  
PulteGroup, Inc.                
03/01/2026, 5.500%     500,000       534,775  
Seagate HDD Cayman                
06/01/2027, 4.875%     1,250,000       1,305,518  
Sunac China Holdings, Ltd.                
04/19/2023, 8.350%(i)     2,250,000       2,244,765  
Times China Holdings, Ltd.                
06/04/2021, 7.850%(i)     1,500,000       1,522,749  
TPG Specialty Lending, Inc.                
11/01/2024, 3.875%(b)(c)     2,500,000       2,300,874  
USB Capital IX                
Perpetual Maturity, 3M US L + 1.020%(b)(c)(h)(j)     2,614,000       2,121,901  
                 
TOTAL CORPORATE BONDS                
(Cost $22,918,012)             21,724,346  
                 
GOVERNMENT & AGENCY OBLIGATIONS 25.56%                
U.S. Treasury Bonds                
02/15/2029, 5.250%(b)     4,280,000       5,992,502  
11/15/2049, 2.375%     7,125,000       9,017,021  
U.S. Treasury Notes                
10/31/2020, 1.750%(b)     4,000,000       4,032,266  
12/31/2020, 2.500%(b)     5,000,000       5,078,809  
01/31/2021, 2.500%(b)     2,000,000       2,035,312  
02/28/2022, 1.125%(b)     16,984,000       17,272,927  
02/28/2023, 2.625%(b)     15,000,000       16,007,812  
02/28/2025, 1.125%(b)     8,000,000       8,300,000  

 

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Clough Global Opportunities Fund Statement of Investments
  April 30, 2020 (Unaudited)

 

    Principal        
Description/Maturity Date/Rate   Amount     Value  
GOVERNMENT & AGENCY OBLIGATIONS (continued)                
02/28/2027, 1.125%(b)   $ 7,400,000     $ 7,699,469  
                 
TOTAL GOVERNMENT & AGENCY OBLIGATIONS                
(Cost $74,911,648)             75,436,118  

 

    Shares     Value  
SHORT-TERM INVESTMENTS 2.25%            
Money Market Funds 2.25%                
BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (0.116% 7-day yield)     6,652,627       6,652,627  
                 
TOTAL SHORT-TERM INVESTMENTS                
(Cost $6,652,627)             6,652,627  
                 
Total Investments - 160.19%                
(Cost $456,945,485)             472,732,486  
                 
Liabilities in Excess of Other Assets - (60.19%)(k)             (177,627,195 )
                 
NET ASSETS - 100.00%           $ 295,105,291  
                 
SCHEDULE OF SECURITIES SOLD SHORT (a)     Shares       Value  
COMMON STOCKS (13.98%)                
Consumer Discretionary (0.52%)                
Booking Holdings, Inc.     (1,041 )     (1,541,273 )
                 
Financials (2.80%)                
Deutsche Bank AG     (721,443 )     (5,345,893 )
Mediobanca Banca di Credito Finanziario SpA     (157,505 )     (912,722 )
Societe Generale S.A.     (30,516 )     (476,870 )
UniCredit SpA     (197,432 )     (1,520,771 )
              (8,256,256 )
                 
Health Care (6.18%)                
Alexion Pharmaceuticals, Inc.     (52,500 )     (5,642,175 )
Bruker Corp.     (39,410 )     (1,549,601 )
Charles River Laboratories International, Inc.     (23,940 )     (3,463,400 )
IQVIA Holdings, Inc.     (26,820 )     (3,824,264 )
PRA Health Sciences, Inc.     (39,010 )     (3,764,465 )
              (18,243,905 )
                 
Information Technology (4.48%)                
Cognizant Technology Solutions Corp. - Class A     (18,091 )     (1,049,640 )
Corning, Inc.     (60,300 )     (1,327,203 )
International Business Machines Corp.     (49,470 )     (6,211,453 )

 

SCHEDULE OF SECURITIES SOLD SHORT (a) (continued)   Shares     Value  
Information Technology (continued)                
ON Semiconductor Corp.     (78,200 )   $ (1,254,719 )
Paycom Software, Inc.     (4,250 )     (1,109,335 )
Paylocity Holding Corp.     (10,200 )     (1,168,206 )
Qualys, Inc.     (10,400 )     (1,096,576 )
              (13,217,132 )
                 
TOTAL COMMON STOCKS                
(Proceeds $39,110,571)             (41,258,566 )
                 
EXCHANGE TRADED FUNDS (12.23%)                
SPDR® S&P 500® ETF Trust     (114,330 )     (33,210,578 )
SPDR® S&P® Regional Banking ETF     (75,300 )     (2,871,189 )
                 
                 
TOTAL EXCHANGE TRADED FUNDS                
(Proceeds $31,437,005)             (36,081,767 )
                 
TOTAL SECURITIES SOLD SHORT                
(Proceeds $70,547,576)           $ (77,340,333 )

 

Investment Abbreviations:

1D FEDEF - Federal Funds Effective Rate (Daily)

LIBOR - London Interbank Offered Rate

 

FEDEF Rates:

1D FEDEF - 1 Day FEDEF as of April 30, 2020 was 0.05%

 

Libor Rates:

3M US L - 3 Month LIBOR as of April 30, 2020 was 0.56%

 

(a) Non-income producing security.
(b) Pledged security; a portion or all of the security is pledged as collateral for securities sold short, total return swap contracts, or borrowings. As of April 30, 2020, the aggregate value of those securities was $348,426,042, representing 118.07% of net assets. (See Note 1 and Note 6)
(c) Loaned security; a portion or all of the security is on loan as of April 30, 2020.
(d) Security is exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of April 30, 2020, these securities had an aggregate value of $10,045,622 or 3.40% of net assets.
(e) Private Placement; these securities may only be resold in transactions exempt from registration under the Securities Act of 1933. As of April 30, 2020, these securities had an aggregate value of $6,158,835 or 2.09% of net assets.
(f) As a result of the use of significant unobservable inputs to determine fair value, these investments have been classified as Level 3 assets. (See Note 1)
(g) Fair valued security; valued by management in accordance with procedures approved by the Board. As of April 30, 2020, these securities had an aggregate value of $6,158,835 or 2.09% of total net assets.

 

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Clough Global Opportunities Fund Statement of Investments
  April 30, 2020 (Unaudited)

  

(h) This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(i) Securities were purchased pursuant to Regulation S under the Securities Act of 1933, which exempts securities offered and sold outside of the United States from registration. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. These securities have been deemed liquid under guidelines approved by the Fund's Board of Trustees. As of April 30, 2020, the aggregate value of those securities was $4,529,843, representing 1.53% of net assets.
(j) Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at April 30, 2020. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above.
(k) Includes cash which is being held as collateral for total return swap contracts and securities sold short.

 

For Fund compliance purposes, the Fund’s sector classifications refer to any one of the sector sub-classifications used by one or more widely recognized market indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine sector sub-classifications for reporting ease. Sectors are shown as a percent of net assets. These sector classifications are unaudited.

 

 

 

Semi-Annual Report  |  April 30, 2020 25

 

 

 

Clough Global Opportunities Fund Statement of Investments
  April 30, 2020 (Unaudited)

 

FUTURES CONTRACTS

 

                          Unrealized  
                Expiration   Notional     Appreciation/  
Description   Counterparty   Position   Contracts   Date   Value     (Depreciation)  
EURODOLLAR 90 DAY   Morgan Stanley   Long   2,316   December 2020   $ 577,176,150     $ 268,570  
EURODOLLAR 90 DAY   Morgan Stanley   Long   6,611   June 2021     1,648,535,488       12,317,832  
                    $ 2,225,711,638     $ 12,586,402  

 

TOTAL RETURN SWAP CONTRACTS

 

    Reference   Notional     Floating Rate   Floating   Termination         Net Unrealized  
Counter Party   Entity/Obligation   Amount     Paid by the Fund   Rate Index   Date   Value     Appreciation  
Morgan Stanley   Banco Santander SA   $ (595,195 )   1D FEDEF - 50 bps   1D FEDEF   05/20/2020   $ (331,467 )   $ 263,728  
Morgan Stanley   Kweichow Moutai Co., Ltd.     6,714,847     1D FEDEF - 250 bps   1D FEDEF   05/29/2020     7,068,938       354,091  
Morgan Stanley   Sany Heavy Industry Co., Ltd.     5,330,776     1D FEDEF - 250 bps   1D FEDEF   05/29/2020     5,485,268       154,492  
        $ 11,450,428                 $ 12,222,739     $ 772,311  
                                         
    Reference     Notional     Floating Rate   Floating   Termination             Net Unrealized  
Counter Party   Entity/Obligation     Amount     Paid by the Fund   Rate Index   Date     Value       Depreciation  
Morgan Stanley   Wuliangye Yibin Co., Ltd.   $ 2,857,093     1D FEDEF - 255 bps   1D FEDEF   05/04/2022   $ 2,833,956     $ (23,137 )
Morgan Stanley   Zoomlion Heavy Industry Science     2,709,341     1D FEDEF - 250 bps   1D FEDEF   05/29/2020     2,699,616       (9,725 )
        $ 5,566,434                 $ 5,533,572     $ (32,862 )
TOTAL       $ 17,016,862                 $ 17,756,311     $ 739,449  

 

See Notes to the Financial Statements.

 

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Clough Global Funds Statements of Assets and Liabilities
  April 30, 2020 (Unaudited)

 

    Clough Global Dividend and Income Fund     Clough Global Equity Fund     Clough Global Opportunities Fund  
                   
ASSETS:                  
                         
Investments, at value (Cost - see below)*   $ 129,875,600     $ 233,468,945     $ 472,732,486  
Cash     2,713,044       6,505,122       13,080,107  
Deposit with broker for futures contracts     1,765,931       3,320,976       6,348,894  
Deposit with broker for securities sold short     9,122,378       37,194,477       75,006,374  
Deposit with broker for total return swap contracts     1,733,037       3,617,136       7,291,742  
Deposit with broker for written options     310,560       958,516       1,932,291  
Unrealized appreciation on total return swap contracts     207,360       363,588       772,311  
Dividends receivable     20,346       31,187       66,046  
Interest receivable     291,525       171,780       447,745  
Receivable for investments sold     7,065,029       7,416,952       14,605,961  
Other assets     1,336       1,340       1,336  
Deferred offering costs                 103,247  
Total Assets     153,106,146       293,050,019       592,388,540  
                         
LIABILITIES:                        
                         
Loan payable     50,500,000       87,500,000       178,000,000  
Interest due on loan payable     78,393       135,830       276,317  
Variation margin payable     32,650       55,438       111,588  
Securities sold short, at value (Proceeds $11,609,147, $35,030,878 and $70,547,576)     12,458,546       38,555,467       77,340,333  
Payable for investments purchased     8,141,194       18,677,731       40,779,390  
Unrealized depreciation on total return swap contracts     6,271       16,325       32,862  
Payable for total return swap contracts payments     25,284       45,319       94,888  
Interest payable - margin account     13,112       25,001       50,792  
Accrued investment advisory fee     87,540       201,193       451,649  
Accrued administration fee     36,543       72,437       145,430  
Other payables and accrued expenses     40,031       68,551        
Total Liabilities     71,419,564       145,353,292       297,283,249  
Net Assets   $ 81,686,582     $ 147,696,727     $ 295,105,291  
Cost of Investments   $ 128,786,844     $ 224,792,968     $ 456,945,485  
                         
COMPOSITION OF NET ASSETS:                        
                         
Paid-in capital   $ 96,238,198     $ 157,240,832     $ 328,168,648  
Distributable earnings     (14,551,616 )     (9,544,105 )     (33,063,357 )
Net Assets   $ 81,686,582     $ 147,696,727     $ 295,105,291  
Shares of common stock outstanding of no par value, unlimited shares authorized     8,407,724       13,230,829       32,224,412  
Net asset value per share   $ 9.72     $ 11.16     $ 9.16  
                         
*     Securities Loaned, at value   $ 23,297,017     $ 63,482,052     $ 133,777,296  

 

See Notes to the Financial Statements. 

Semi-Annual Report  |  April 30, 2020 27

 

 

 

Clough Global Funds Statements of Operations
  For the six months ended April 30, 2020 (Unaudited)

 

    Clough Global Dividend and Income Fund     Clough Global Equity Fund     Clough Global Opportunities Fund  
INVESTMENT INCOME:                  
                         
Dividends (net of foreign withholding taxes of $10,814, $18,202 and $36,935)   $ 1,574,610     $ 2,296,339     $ 4,329,414  
Interest on investment securities     549,638       184,770       935,176  
Interest income - margin account     59,815       98,609       215,904  
Hypothecated securities income (See Note 6)     9,655       90,242       132,321  
Total Income     2,193,718       2,669,960       5,612,815  
                         
EXPENSES:                        
                         
Investment advisory fee     599,210       1,337,581       2,998,425  
Administration fee     249,650       481,401       965,717  
Interest on loan     580,021       1,002,894       2,068,686  
Trustees fee     66,222       66,222       66,222  
Dividend expense - short sales     128,273       221,943       484,359  
Other expenses     2,704       4,168       4,843  
Total Expenses     1,626,080       3,114,209       6,588,252  
Net Investment Income/(Loss)     567,638       (444,249 )     (975,437 )
                         
NET REALIZED GAIN/(LOSS) ON:                        
Investment securities     (14,996,724 )     (13,871,075 )     (21,923,608 )
Futures contracts     837,785       1,442,418       2,909,345  
Securities sold short     (1,186,200 )     (2,339,762 )     (4,187,579 )
Written options     1,341,047       (4,143,118 )     (8,310,820 )
Total return swap contracts     450,587       1,662,334       3,368,589  
Foreign currency transactions     (66,548 )     (140,907 )     (250,660 )
Net realized loss     (13,620,053 )     (17,390,110 )     (28,394,733 )
NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION) ON:                        
Investment securities     (6,346,184 )     (1,027,888 )     (6,936,415 )
Futures contracts     3,595,499       6,283,424       12,586,402  
Securities sold short     (184,754 )     (2,329,549 )     (4,171,584 )
Written options     (24,595 )     (40,992 )     (84,034 )
Total return swap contracts     102,527       (36,589 )     (82,426 )
Translation of assets and liabilities denominated in foreign currencies     (315 )     (542 )     (885 )
Deferred capital gains tax     19,802       33,041       58,892  
Net change in unrealized appreciation/(depreciation)     (2,838,020 )     2,880,905       1,369,950  
Net Realized and Unrealized Loss     (16,458,073 )     (14,509,205 )     (27,024,783 )
Net Decrease in Net Assets Attributable to Common Shares from Operations   $ (15,890,435 )   $ (14,953,454 )   $ (28,000,220 )

 

See Notes to the Financial Statements. 

28

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Clough Global Dividend and Income Fund Statements of Changes in Net Assets

 

    For the        
    Six Months Ended     For the  
    April 30, 2020     Year Ended  
    (Unaudited)     October 31, 2019  
             
COMMON SHAREHOLDERS OPERATIONS:            
                 
Net investment income   $ 567,638     $ 1,152,057  
Net realized gain/(loss)     (13,620,053 )     3,580,635  
Net change in unrealized appreciation/(depreciation)     (2,838,020 )     4,558,700  
Net Increase/(Decrease) in Net Assets From Operations     (15,890,435 )     9,291,392  
                 
DISTRIBUTIONS TO COMMON SHAREHOLDERS:                
From distributable earnings     (5,078,265 )     (4,288,182 )
Tax return of capital           (4,638,158 )
Net Decrease in Net Assets from Distributions     (5,078,265 )     (8,926,340 )
                 
CAPITAL SHARE TRANSACTIONS                
Proceeds from sales of shares, net of offering costs           14,425,411  
Offering costs     (14,998 )      
Net Increase/(Decrease) in Net Assets From Share Transactions     (14,998 )     14,425,411  
                 
Net Increase/(Decrease) in Net Assets Attributable to Common Shares     (20,983,698 )     14,790,463  
                 
NET ASSETS ATTRIBUABLE TO COMMON SHARES:                
                 
Beginning of period     102,670,280       87,879,817  
End of period   $ 81,686,582     $ 102,670,280  

 

See Notes to the Financial Statements.

Semi-Annual Report  |  April 30, 2020 29

 

 

 

Clough Global Equity Fund Statements of Changes in Net Assets

 

    For the        
    Six Months Ended     For the  
    April 30, 2020     Year Ended  
    (Unaudited)     October 31, 2019  
             
COMMON SHAREHOLDERS OPERATIONS:                
                 
Net investment loss   $ (444,249 )   $ (676,852 )
Net realized gain/(loss)     (17,390,110 )     13,102,244  
Net change in unrealized appreciation     2,880,905       175,187  
Net Increase/(Decrease) in Net Assets From Operations     (14,953,454 )     12,600,579  
                 
DISTRIBUTIONS TO COMMON SHAREHOLDERS:                
From distributable earnings     (8,672,808 )     (15,225,597 )
Net Decrease in Net Assets from Distributions     (8,672,808 )     (15,225,597 )
                 
CAPITAL SHARE TRANSACTIONS                
Proceeds from sales of shares, net of offering costs           24,582,751  
Offering costs     (14,001 )      
Net Increase/(Decrease) in Net Assets From Share Transactions     (14,001 )     24,582,751  
                 
Net Increase/(Decrease) in Net Assets Attributable to Common Shares     (23,640,263 )     21,957,733  
                 
NET ASSETS ATTRIBUABLE TO COMMON SHARES:                
                 
Beginning of period     171,336,990       149,379,257  
End of period   $ 147,696,727     $ 171,336,990  
                 

See Notes to the Financial Statements. 

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Clough Global Opportunities Fund Statements of Changes in Net Assets

 

    For the        
    Six Months Ended     For the  
    April 30, 2020     Year Ended  
    (Unaudited)     October 31, 2019  
             
COMMON SHAREHOLDERS OPERATIONS:            
                 
Net investment loss   $ (975,437 )   $ (1,334,560 )
Net realized gain/(loss)     (28,394,733 )     19,535,681  
Net change in unrealized appreciation     1,369,950       13,493,165  
Net Increase/(Decrease) in Net Assets From Operations     (28,000,220 )     31,694,286  
                 
DISTRIBUTIONS TO COMMON SHAREHOLDERS:                
From distributable earnings     (17,172,389 )     (22,685,819 )
Tax return of capital           (11,314,158 )
Net Decrease in Net Assets from Distributions     (17,172,389 )     (33,999,977 )
                 
Net Decrease in Net Assets Attributable to Common Shares     (45,172,609 )     (2,305,691 )
                 
NET ASSETS ATTRIBUABLE TO COMMON SHARES:                
                 
Beginning of period     340,277,900       342,583,591  
End of period   $ 295,105,291     $ 340,277,900  

 

See Notes to the Financial Statements. 

Semi-Annual Report  |  April 30, 2020 31

 

 

 

Clough Global Funds Statements of Cash Flows
  For the six months ended April 30, 2020 (Unaudited)

 

    Clough Global Dividend and Income Fund     Clough Global Equity Fund     Clough Global Opportunities Fund  
CASH FLOWS FROM OPERATING ACTIVITIES:                        
Net decrease in net assets from operations   $ (15,890,435 )   $ (14,953,454 )   $ (28,000,220 )
Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities:                        
Purchase of investment securities     (173,853,001 )     (308,048,648 )     (647,201,003 )
Proceeds from disposition of investment securities     176,329,091       318,447,368       695,986,960  
Proceeds from securities sold short transactions     79,381,064       142,024,640       284,716,189  
Cover securities sold short transactions     (89,228,340 )     (145,220,764 )     (293,611,656 )
Premiums received from written options transactions     1,814,509       3,647,535       7,299,981  
Premiums paid on closing written options transactions     (769,858 )     (8,284,645 )     (16,623,485 )
Purchased options transactions     (3,571,785 )     (7,966,390 )     (15,564,404 )
Proceeds from purchased options transactions     1,533,151       12,137,261       24,192,619  
Net proceeds from/(purchases of) short-term investment securities     3,927,884       9,459,377       (4,654,302 )
Net realized (gain)/loss on:                        
Investment securities     14,996,724       13,871,075       21,923,608  
Securities sold short     1,186,200       2,339,762       4,187,579  
Total return swap contracts     (450,587 )     (1,662,334 )     (3,368,589 )
Written options     (1,341,047 )     4,143,118       8,310,820  
Net change in unrealized (appreciation)/depreciation on:                        
Investment securities     6,346,184       1,027,888       6,936,415  
Securities sold short     184,754       2,329,549       4,171,584  
Written options     24,595       40,992       84,034  
Total return swap contracts     (102,527 )     36,589       82,426  
Deferred capital gains tax     (19,802 )     (33,041 )     (58,892 )
Net amortization/(accretion) of premiums/discounts     195,345       82,434       344,279  
(Increase)/Decrease in assets:                        
Interest receivable - margin account     19,389       38,001       80,481  
Dividends receivable     23,165       39,917       89,622  
Interest receivable     74,930       62,346       322,006  
Other assets     (1,336 )     (1,340 )     (4,245 )
Increase/(Decrease) in liabilities:                        
Interest due on loan payable     (36,042 )     (59,518 )     (135,185 )
Variation margin payable     32,650       55,438       111,588  
Payable for total return swap contracts payments     14,146       21,473       41,909  
Interest payable - margin account     13,112       25,001       50,792  
Accrued investment advisory fee     (13,847 )     (19,934 )     (48,471 )
Accrued administration fee     (5,670 )     (7,120 )     (15,543 )
Accrued trustees fee     (395 )     (395 )     (395 )
Other payables and accrued expenses     (7,616 )     2,122       (295 )
Net cash provided by operating activities     804,605       23,574,303       49,646,207  
                         
CASH FLOWS FROM FINANCING ACTIVITIES:                        
Loan payable     1,000,000       3,000,000        
Offering costs     (14,998 )     (14,001 )      
Cash distributions paid     (5,078,265 )     (8,672,808 )     (17,172,389 )
Payable due to custodian                 (242,590 )
Net cash used in financing activities     (4,093,263 )     (5,686,809 )     (17,414,979 )
                         
Effect of exchange rates on cash     315       542       885  
                         
Net Change in Cash, Restricted Cash and Foreign Rates on Cash     (3,288,343 )     17,888,036       32,232,113  
                         
Cash and restricted cash, beginning of year   $ 18,933,293     $ 33,708,191     $ 71,427,295  
Cash and restricted cash, end of year   $ 15,644,950     $ 51,596,227     $ 103,659,408  

 

See Notes to the Financial Statements. 

32 www.cloughglobal.com

 

 

 

Clough Global Funds Statements of Cash Flows
  For the six months ended April 30, 2020 (Unaudited)

  

    Clough Global Dividend and Income Fund     Clough Global Equity Fund     Clough Global Opportunities Fund  
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                        
Cash paid during the year for interest from loan payable:   $ 616,063     $ 1,062,412     $ 2,203,871  
                         
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF YEAR TO THE STATEMENT OF ASSETS AND LIABILITIES                        
Cash   $ 141,295     $ 97,250     $  
Foreign Currency, at value     816,844       1,409,852       3,195,631  
Deposit with broker                        
Securities sold short     17,070,563       30,034,660       63,827,371  
Total return swaps     604,472       1,717,213       3,483,400  
Written options     300,119       449,216       920,893  
                         
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF YEAR TO THE STATEMENT OF ASSETS AND LIABILITIES                        
Cash   $ 2,713,044     $ 6,505,122     $ 13,080,107  
Deposit with broker                        
Futures     1,765,931       3,320,976       6,348,894  
Securities sold short     9,122,378       37,194,477       75,006,374  
Total return swaps     1,733,037       3,617,136       7,291,742  
Written options     310,560       958,516       1,932,291  

 

See Notes to the Financial Statements. 

Semi-Annual Report  |  April 30, 2020 33

 

 

 

Clough Global Dividend and Income Fund Financial Highlights
  For a share outstanding throughout the years indicated

 

    For the Six Months Ended April 30, 2020 (Unaudited)     For the Year Ended October 31, 2019     For the Year Ended October 31, 2018     For the Year Ended October 31, 2017     For the Year Ended October 31, 2016(1)     For the Year Ended October 31, 2015  
                                     
PER COMMON SHARE OPERATING PERFORMANCE:                                                
Net asset value - beginning of period   $ 12.21     $ 12.54     $ 14.76     $ 13.79     $ 15.65     $ 16.96  
Income from investment operations:                                                
Net investment income/(loss)*     0.07       0.16       0.22       0.12       (0.01 )     (0.27 )
Net realized and unrealized gain/(loss) on investments     (1.96 )     1.08       (1.15 )     2.14       (0.46 )     0.38  
Total Income/(Loss) from Investment Operations     (1.89 )     1.24       (0.93 )     2.26       (0.47 )     0.11  
                                                 
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:                                                
Net investment income     (0.60 )     (0.06 )           (0.37 )           (0.07 )
Net realized gains           (0.53 )     (0.17 )           (0.59 )     (1.34 )
Tax return of capital           (0.64 )     (1.23 )     (0.92 )     (0.80 )      
Total Distributions to Common Shareholders     (0.60 )     (1.23 )     (1.40 )     (1.29 )     (1.39 )     (1.41 )
                                                 
CAPITAL SHARE TRANSACTIONS:                                                
Accretive/(Dilutive) impact of capital share transactions           (0.34 )     0.11       (0.00 )(2)           (0.01 )
Total Capital Share Transactions           (0.34 )     0.11       (0.00 )(2)           (0.01 )
Net asset value - end of period   $ 9.72     $ 12.21     $ 12.54     $ 14.76     $ 13.79     $ 15.65  
Market price - end of period   $ 8.50     $ 10.96     $ 11.28     $ 14.16     $ 11.62     $ 13.60  
                                                 
Total Investment Return - Net Asset Value:(3)     (15.39 )%     11.75 %     (5.18 )%     17.89 %     (1.14 )%     1.61 %
Total Investment Return - Market Price:(3)     (17.57 )%     11.51 %     (11.10 )%     34.22 %     (4.14 )%     2.57 %
                                                 
RATIOS AND SUPPLEMENTAL DATA:                                                
Net assets attributable to common shares, end of period (000s)   $ 81,687     $ 102,670     $ 87,880     $ 153,233     $ 143,319     $ 162,651  
Ratios to average net assets attributable to                                                
common shareholders:                                                
Total expenses     3.40 %(4)     3.66 %     3.48 %     2.94 %     3.65 %     3.95 %
Total expenses excluding interest expense and dividends on short sales expense     1.92 %(4)     1.85 %     1.84 %     1.99 %     2.09 %     2.17 %
Net investment income/(loss)     1.19 %(4)     1.30 %     1.55 %     0.87 %     (0.08 )%     (1.58 )%
Portfolio turnover rate(5)     127 %     253 %     109 %     149 %     205 %     172 %
                                                 
Borrowings at End of Period                                                
Aggregate Amount Outstanding (000s)   $ 50,500     $ 49,500     $ 55,000     $ 72,000     $ 72,000     $ 93,300  
Asset Coverage Per $1,000 (000s)   $ 2,618     $ 3,074     $ 2,598     $ 3,128     $ 2,991     $ 2,743  

 

* Based on average shares outstanding.
(1) Effective July 31, 2016, the Clough Global Allocation Fund name changed to Clough Global Dividend and Income Fund.
(2) Less than $0.005.
(3) Total investment return is calculated assuming a purchase of a common share at the opening on the first day and a sale at the closing on the last day of each period reported and that all rights in the Fund's rights offering were exercised. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at price obtained under the Fund's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions on the purchase or sale of the Fund's common shares. Past performance is not a guarantee of future results. Total returns for the period indicated are not annualized. Total returns include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes and may differ from those reported to the market.
(4) Annualized.
(5) Portfolio turnover rate for periods less than one full year have not been annualized.

 

See Notes to the Financial Statements. 

34 www.cloughglobal.com

 

 

 

Clough Global Equity Fund Financial Highlights
  For a share outstanding throughout the years indicated

  

    For the Six Months Ended April 30, 2020 (Unaudited)     For the Year Ended October 31, 2019     For the Year Ended October 31, 2018     For the Year Ended October 31, 2017     For the Year Ended October 31, 2016     For the Year Ended October 31, 2015  
PER COMMON SHARE OPERATING PERFORMANCE:                                                
Net asset value - beginning of period   $ 12.95     $ 13.55     $ 14.50     $ 12.70     $ 15.10     $ 16.47  
Income from investment operations:                                                
Net investment income/(loss)*     (0.03 )     (0.06 )     0.01       (0.02 )     (0.23 )     (0.45 )
Net realized and unrealized gain/(loss) on investments     (1.10 )     1.15       0.41       3.06       (0.84 )     0.46  
Total Income/(Loss) from Investment Operations     (1.13 )     1.09       0.42       3.04       (1.07 )     (0.01 )
                                                 
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:                                                
Net investment income     (0.66 )                 (0.13 )           (0.04 )
Net realized gains           (1.34 )     (1.50 )           (0.90 )     (1.32 )
Tax return of capital                       (1.11 )     (0.43 )      
Total Distributions to Common Shareholders     (0.66 )     (1.34 )     (1.50 )     (1.24 )     (1.33 )     (1.36 )
                                                 
CAPITAL SHARE TRANSACTIONS:                                                
Accretive/(Dilutive) impact of capital share transactions           (0.35 )     0.13       (0.00 )(1)           (0.02 )
Total Capital Share Transactions           (0.35 )     0.13       (0.00 )(1)           (0.02 )
Net asset value - end of period   $ 11.16     $ 12.95     $ 13.55     $ 14.50     $ 12.70     $ 15.10  
Market price - end of period   $ 9.69     $ 11.77     $ 13.21     $ 13.66     $ 10.69     $ 12.92  
                                                 
Total Investment Return - Net Asset Value:(2)     (8.49 )%     9.40 %     3.99 %     25.99 %     (5.36 )%(3)     0.76 %
Total Investment Return - Market Price:(2)     (12.58 )%     1.99 %     7.62 %     41.01 %     (6.90 )%     (0.98 )%
                                                 
RATIOS AND SUPPLEMENTAL DATA:                                                
Net assets attributable to common shares, end of period (000s)   $ 147,697     $ 171,337     $ 149,379     $ 255,870     $ 224,187     $ 266,576  
Ratios to average net assets attributable to common shareholders:                                                
Total expenses     3.78 %(4)     3.94 %     3.63 %     3.14 %     4.21 %     4.56 %
Total expenses excluding interest expense and dividends on short sales expense     2.29 %(4)     2.18 %     2.13 %     2.21 %     2.59 %     2.77 %
Net investment income/(loss)     (0.54 )%(4)     (0.45 )%     0.06 %     (0.14 )%     (1.70 )%     (27.30 )%
Portfolio turnover rate(5)     131 %     297 %     115 %     141 %     182 %     154 %
                                                 
Borrowings at End of Period                                                
Aggregate Amount Outstanding (000s)   $ 87,500     $ 85     $ 9     $ 113     $ 113     $ 156,000  
Asset Coverage Per $1,000 (000s)   $ 2,688     $ 3,028     $ 2,757     $ 3,264     $ 2,984     $ 2,709  

 

* Based on average shares outstanding.
(1) Less than $0.005.
(2) Total investment return is calculated assuming a purchase of a common share at the opening on the first day and a sale at the closing on the last day of each period reported and that all rights in the Fund's rights offering were exercised. Dividends and distributions, if any, are assumed for purposes of this calculation to be reinvested at price obtained under the Fund's dividend reinvestment plan. Total investment returns do not reflect brokerage commissions on the purchase or sale of the Fund's common shares. Past performance is not a guarantee of future results. Total returns for the period indicated are not annualized. Total returns include adjustments in accordance with accounting principles generally accepted in the United States of America for financial reporting purposes and may differ from those reported to the market.
(3) In 2016, 0.07% of the Fund's total return consists of a reimbursement by the Adviser for a realized investment loss. Excluding this item, total return would have been (5.43)%.
(4) Annualized.
(5) Portfolio turnover rate for periods less than one full year have not been annualized.

  

See Notes to the Financial Statements. 

Semi-Annual Report  |  April 30, 2020 35

 

 

 

Clough Global Opportunities Fund Financial Highlights
  For a share outstanding throughout the years indicated

 

    For the Six Months Ended April 30, 2020 (Unaudited)     For the Year Ended October 31, 2019     For the Year Ended October 31, 2018     For the Year Ended October 31, 2017     For the Year Ended October 31, 2016     For the Year Ended October 31, 2015  
                                     
PER COMMON SHARE OPERATING PERFORMANCE:                                                
Net asset value - beginning of period   $ 10.56     $ 10.63     $ 12.09     $ 11.07     $ 12.92     $ 14.11  
Income from investment operations:                                                
Net investment loss*     (0.03 )     (0.04 )     (0.01 )     (0.02 )     (0.15 )     (0.35 )
Net realized and unrealized gain/(loss) on investments     (0.84 )     1.03       (0.35 )     2.11       (0.54 )     0.36  
Total Income/(Loss) from Investment Operations     (0.87 )     0.99       (0.36 )     2.09       (0.69 )     0.01  
                                                 
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:                                                
Net investment income     (0.53 )                 (0.14 )            
Net realized gains           (0.71 )     (0.76 )           (0.18 )     (1.19 )
Tax return of capital           (0.35 )     (0.45 )     (0.93 )     (0.98 )      
Total Distributions to Common Shareholders     (0.53 )     (1.06 )     (1.21 )     (1.07 )     (1.16 )     (1.19 )
                                                 
CAPITAL SHARE TRANSACTIONS:                                                
Accretive/(Dilutive) impact of capital share transactions                 0.11       (0.00 )(1)           (0.01 )
Total Capital Share Transactions                 0.11       (0.00 )(1)           (0.01 )
Net asset value - end of period   $ 9.16     $ 10.56     $ 10.63     $ 12.09     $ 11.07     $ 12.92  
Market price - end of period   $ 7.92     $ 9.19     $ 9.56     $ 11.42     $ 9.04     $ 11.25  
Total Investment Return - Net Asset Value:(2)     (7.78 )%     11.08 %     (1.78 )%     20.99 %     (3.48 )%     1.13 %
Total Investment Return - Market Price:(2)     (8.38 )%     7.49 %     (6.48 )%     39.95 %     (9.49 )%     1.93 %
                                                 
RATIOS AND SUPPLEMENTAL DATA:                                                
Net assets attributable to common shares, end of period (000s)   $ 295,105     $ 340,278     $ 342,584     $ 623,361     $ 570,931     $ 666,588  
Ratios to average net assets attributable to common shareholders:                                                
Total expenses     4.02 %(3)     4.14 %     3.81 % &