N-CSRS 1 fp0043651_ncsrs.htm fp0043651

 

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 1100, Denver, Colorado 80203

 (Address of principal executive offices) (Zip code)

 

Sareena Khwaja-Dixon, Secretary

Clough Global Dividend and Income Fund

 1290 Broadway, Suite 1100

Denver, Colorado 80203

 (Name and address of agent for service)

 

Registrant’s telephone number, including area code: 303-623-2577

 

Date of fiscal year end: October 31

 

Date of reporting period: November 1, 2018 – April 30, 2019

 

 

Item 1. Reports to Stockholders.

 

(GRAPHIC) 

 

 

Section 19(b) Disclosure

April 30, 2019 (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 will pay 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 19
Clough Global Opportunities Fund 23
Statements of Assets and Liabilities 28
Statements of Operations 29
Statements of Changes in Net Assets 30
Statements of Cash Flows 33
Financial Highlights  
Clough Global Dividend and Income Fund 35
Clough Global Equity Fund 36
Clough Global Opportunities Fund 37
Notes to Financial Statements 38
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, 2019 (Unaudited)

 

The Clough Global Dividend and Income Fund (“GLV” or the “Fund”) was up 4.95% on net asset value (“NAV”) and 4.02% on market price for the first six months of the Fund’s fiscal year. The Fund’s benchmark, 50% of the Bloomberg Barclays Aggregate Bond Index and 50% of the MSCI World Index, was up 7.52% for the same period of time.

 

The first half of the year (November 1, 2018 – April 30, 2019) witnessed a significant uptick in market volatility. November and especially December featured a dramatic sell off in risk assets with the market bottoming on Christmas Eve. Markets quickly rallied in January as Federal Reserve policy reversed course, signaling an end to rate hikes while trade war fears temporarily dissipated.

 

While reducing exposure at the end of the year, we decided to keep our high conviction long ideas intact, because we believed that attempts to trade around the steep equity selloffs simply risked being whipsawed. That strategy allowed the Fund to participate in the rally starting in January. As political headlines have resurfaced in India ahead of May elections and in China-U.S. trade negotiations, we have kept our long positions in our two preferred emerging markets tactical while adding to long duration 30-year United States Treasury bonds.

 

We do not base our investment strategies on economic forecasts, but we do follow investment and credit cycles and we draw three conclusions from what we see today: (1) the dominant price trends are deflationary; (2) the Federal Reserve is more likely to ease than tighten; and (3) the economy will likely slow rather than fall into recession. No serious inventory imbalances are present and no serious overbuild in the nation’s capital stock, which would undermine pricing and profitability is visible (such as the technology boom in 2000 or housing in 2008). We believe that although temporary technical factors can knock the market down, the likelihood of a serious liquidity squeeze seems remote at this point.

 

TOP FIVE PERFORMERS

 

The Fund added to duration as rates sold off at the end of 2018. The 30-year U.S. Treasury positions were a top performer for the first half of the fiscal year as rates rallied lower in yield and higher in price after the Federal Reserve signaled an end to its rate hikes. We continue to believe in a low interest rate environment and will look to add to this position opportunistically.

 

Community Healthcare Trust (CHCT) is a growing medical office real estate investment trust (“REIT”) with a well respected and experienced management team. Its ability to acquire attractive properties in a highly fragmented medical office market has allowed CHCT to grow its portfolio and dividend (currently 4.4%) at an impressive rate.

 

Moutai (600519 CH) is a leading liquor brand in China which we have owned for many years. For the last few months, we have been very bullish about their margins expanding further. They have decided to bring distribution in house which will lead to a structural margin expansion and significant earnings growth.

 

We continue to like U.S. global money center banks. Citigroup (C) was a top performer. The U.S. money center banks like Citi continue to grow share from smaller banks at home and weaker banks abroad. Increased profitability coupled with stronger balance sheets should continue to support strong capital return to shareholders in the form of increasing dividends and share buy backs.

 

Microsoft (MSFT) continues to be a core position for the Fund. They are a leading player in cloud computing which we expect to drive growth for years to come. With one of the best management teams in tech and strong free cash flows, we remain very excited about this idea.

 

BOTTOM FIVE PERFORMERS

 

Qualcomm (QCOM) was a short idea which went against us. Our view was that their core modem technology was getting commoditized and their royalty business model was unsustainable. At the same time, consensus was modelling an aggressive roll out of a 5G technology handset, which was different from our view.

 

A short position in a rare blood disease company Alexion (ALXN) detracted from performance. During the period, the stock gained as the company generated strong Q4 2018 results and provided conservative 2019 guidance. The company also hosted an analyst day that was well received by Wall Street as it focused on diversifying its pipeline. We continue to hold the short position as we believe the competitive pressures from emerging companies and biosimilars are underappreciated.

 

APPLE (AAPL) is directly exposed to the China-U.S. tariff dispute. The iPhone is largely manufactured in China and the supply chain is so entrenched that it will be hard to move it outside China. We have exited the position and will revisit at a later date.

 

 

2 www.cloughglobal.com

 

 

Clough Global Dividend and Income Fund Shareholder Letter

 

April 30, 2019 (Unaudited)

 

We continue to believe in our European bank short thesis. These banks rallied off the bottom with the rest of the market in January. As a result, Medio Banca (MB IM) was one of our bottom performers. The Fund continues to hold this position. With heavy asset to equity ratios persisting in Europe’s weaker banks and little progress being made to resolve troubled loans, we believe this space will continue to decline.

 

iShares Dow Jones U.S. Health Care (IHF) is a health care exchange traded fund (“ETF”) the Fund used to hedge our positions in health care providers such as United Health (UNH) and Cigna (CI). The Fund used the ETF to quickly protect these positions as political rhetoric around “Medicare for all” started to gain traction on the Democratic Presidential campaign trail and started to drive down the prices of companies in the provider space.

 

RIGHTS OFFERING ANNOUNCED

 

We are pleased to report that on April 18, 2019, the Board of Trustees of GLV (the “Board”) authorized and set terms of an offering to shareholders of rights to purchase additional shares of the Fund. Shareholders on a record date to be established by the Fund's Board would be issued transferable rights entitling them to subscribe for one additional share for every five shares held (the “Primary Subscription”), with the right to subscribe for additional shares not subscribed for by others in the Primary Subscription. The Fund anticipates that the offering will commence in July 2019 and will continue for approximately 30 days. The rights offering is subject to the effectiveness of the Fund's registration statement filed with the U.S. Securities and Exchange Commission.

 

Finally, we are excited to announce that we have moved to new offices on the 27th floor of 53 State Street in Boston, where we have signed a long-term lease. We look forward to hosting our clients in our beautiful new space. As always, if you have any questions, please contact us at 1-877-256-8445.

 

Sincerely,

 

 -s-Charles I Clough, Jr.

 

Charles I Clough, Jr.

 

 -s-Robert M. Zdunczyk

 

Robert M. Zdunczyk

 

 

Semi-Annual Report | April 30, 2019 3

 

 

Clough Global Dividend and Income Fund Shareholder Letter

 

April 30, 2019 (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 stock market index of world stocks. It is maintained by MSCI Inc. and is often used as a common benchmark for world or global stock funds. The index includes a collection of stocks of all the developed markets in the world as defined by MSCI.

 

Bloomberg Barclays U.S. Aggregate Bond Index: Measures the performance of the U.S. investment grade bond market. The 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, 2019 (Unaudited)

 

Top 10 Equity Holdings^^ % of Total Portfolio
1. Citigroup, Inc. 4.87%
2. Microsoft Corp. 3.24%
3. Community Healthcare Trust, Inc. 3.11%
4. HDFC Bank, Ltd. 2.54%
5. Starwood Property Trust, Inc. 2.53%
6. Softbank Group Corp. 2.49%
7. Home Depot, Inc. 2.40%
8. Bank of America Corp. 2.39%
9. Larsen & Toubro, Ltd. 2.38%
10. Ares Capital Corp. 2.34%

 

Global Securities Holdings^ % of Total Portfolio
United States 72.35%
U.S. Multinationals 17.81%
India 5.61%
China 3.13%
Japan 2.49%
Hong Kong 1.15%
United Kingdom 0.23%
Other -2.77%
TOTAL INVESTMENTS 100.00%
Asset Allocation* % of Total Portfolio
Common Stock - US 35.44%
Common Stock - Foreign 26.32%
Exchange Traded Funds -3.53%
Total Return Swap Contracts 1.99%
Total Equities 60.22%
   
Government L/T 14.24%
Corporate Debt 6.73%
Preferred Stock 5.84%
Asset/ Mortgage Backed 0.07%
Total Fixed Income 26.88%
   
Other (Cash) 9.46%
Short-Term Investments 3.31%
Purchased Options 0.13%
   
TOTAL INVESTMENTS 100.00%

 

Country Allocation**

Long

Exposure

%TNA

Short

Exposure

%TNA

Gross

Exposure

%TNA

Net

Exposure

%TNA

United States 107.6% -2.9% 110.5% 104.7%
U.S. Multinationals 30.5% -4.8% 35.3% 25.7%
India 8.1% 0.0% 8.1% 8.1%
China 4.5% 0.0% 4.5% 4.5%
Japan 3.6% 0.0% 3.6% 3.6%
Hong Kong 1.7% 0.0% 1.7% 1.7%
United Kingdom 0.3% 0.0% 0.3% 0.3%
Other 0.0% -4.0% 4.0% -4.0%
TOTAL INVESTMENTS 156.3% -11.7% 168.0% 144.6%

 

*Percentages are based on total investments, including securities sold short and derivative contracts. Holdings are subject to change.
^Includes securities sold short, derivative contracts and foreign cash balances.
US Multinational Corporations – has more than 50% of revenues derived outside of the U.S.
**Calculated as percent of total net assets using value of cash traded securities and foreign cash balances, and notional value of derivative contracts.
^^Only long positions are listed.


 

Semi-Annual Report | April 30, 2019 5

 

 

Clough Global Equity Fund Shareholder Letter

 

 April 30, 2019 (Unaudited)

 

The Clough Global Equity Fund (“GLQ” or the “Fund”) was up 8.10% on net asset value (“NAV”) and 5.78% on market price for the first six months of the Fund’s fiscal year. The Fund’s benchmark, the MSCI World Index, was up 9.16% for the same period of time.

 

The first half of the year (November 1, 2018 – April 30, 2019) witnessed a significant uptick in market volatility. November and especially December featured a dramatic sell off in risk assets with the market bottoming on Christmas Eve. Markets quickly rallied in January as Federal Reserve policy reversed course, signaling an end to rate hikes while trade war fears temporarily dissipated.

 

While reducing exposure at the end of the year, we decided to keep our high conviction long ideas intact, because we believed that attempts to trade around the steep equity selloffs simply risked being whipsawed. That strategy allowed the Fund to participate in the rally starting in January. As political headlines have resurfaced in India ahead of May elections and in China-US trade negotiations, we have kept our long positions in our two preferred emerging markets tactical while adding to long duration 30-year United States Treasury bonds.

 

We do not base our investment strategies on economic forecasts, but we do follow investment and credit cycles and we draw three conclusions from what we see today: (1) the dominant price trends are deflationary; (2) the Federal Reserve is more likely to ease than tighten; and (3) the economy will likely slow rather than fall into recession. No serious inventory imbalances are present and no serious overbuild in the nation’s capital stock, which would undermine pricing and profitability is visible (such as the technology boom in 2000 or housing in 2008). We believe that although temporary technical factors can knock the market down, the likelihood of a serious liquidity squeeze seems remote at this point.

 

TOP FIVE PERFORMERS

 

Carvana (CVNA) is a highly volatile stock that has landed in the Fund’s top five and bottom five. During the first half of the fiscal year, the online distributer of used cars was a top performer. It is a controversial stock with an astonishing 60% of the stock free-float held short. Because the company’s long-term plan seeks to capture the profits from financing many of its vehicles, there has been concern that it is selling its auto loan receivables to related parties and possibly inflating profits. But last month the company secured asset backed financing in the public markets, dramatically reducing financial costs, a testimony to its market presence and dominant business model. The company is expected to soon reach desired markets throughout the United States, and its investment needs will slow. Revenues have continued to grow more than 100% annually. Free cash flow could reach $1 billion annually by 2022, according to some estimates. We think the company has the potential to grow several times its current size.

 

Transdigm (TDG) is a manufacturer and distributor of aircraft parts. It has grown organically and by acquisition, consistently improving its return on investment (“ROI”). Its acquisition of Esterline Corp, which is a large addition to its operation, opens up the likelihood of an acceleration in earnings growth. Management’s incentives are based totally on returns derived from acquisitions. Their record on this score is impressive.

 

Tesaro (TSRO), an oncology company focused on ovarian cancer, was acquired by GlaxoSmithKline for $4.5 billion. The offer represented a 62% premium over Tesaro’s prior closing price.

 

Alibaba (BABA) is another core position for the Fund. We have talked about the dynamics and the strength of the Chinese consumer over the years, and in our view, we are still in the relatively early innings of this story. Revenue growth continues to be very strong at Alibaba, with just announced revenue growing 40% from the previous year. The initial public offering (“IPO”) for its financial services arm should provide an additional catalyst for the stock.

 

Moutai (600519 CH) is a leading liquor brand in China which we have owned for many years. For the last few months, we have been very bullish about their margins expanding further. They have decided to bring distribution in house which will lead to a structural margin expansion and significant earnings growth.

 

BOTTOM FIVE PERFORMERS

 

Qualcomm (QCOM) was a short idea which went against us. Our view was that their core modem technology was getting commoditized and their royalty business model was unsustainable. At the same time, consensus was modelling an aggressive roll out of a 5G technology handset which was different from our view.

 

Yelp (YELP) is a business with a strong following both amongst businesses and consumers. However, management has mis-executed on several occasions in the last couple of years. While the stock is cheap, we have rotated towards higher conviction ideas.

 

A short position in a rare blood disease company Alexion (ALXN) detracted from performance. During the period, the stock gained as the company generated strong Q4 2018 results and provided conservative 2019 guidance. The company also hosted an analyst day that was well received by Wall Street as it focused on diversifying its pipeline. We continue to hold the short position as we believe the competitive pressures from emerging companies and biosimilars are underappreciated.

 

 

6 www.cloughglobal.com

 

 

Clough Global Equity Fund Shareholder Letter

 

April 30, 2019 (Unaudited)

 

APPLE (AAPL) is directly exposed to the China-US tariff dispute. The iPhone is largely manufactured in China and the supply chain is so entrenched that it will be hard to move it outside China. We have exited the position and will revisit at a later date.

 

Talend (TLND) is an infrastructure company where we are excited about the rapidly growing cloud business. However, the growth rate of the legacy business has slowed down significantly, and we have stepped aside.

 

RIGHTS OFFERING ANNOUNCED

 

We are pleased to report that on April 18, 2019, the Board of Trustees of GLQ (the “Board”) authorized and set terms of an offering to shareholders of rights to purchase additional shares of the Fund. Shareholders on a record date to be established by the Fund's Board would be issued transferable rights entitling them to subscribe for one additional share for every five shares held (the “Primary Subscription”), with the right to subscribe for additional shares not subscribed for by others in the Primary Subscription. The Fund anticipates that the offering will commence in July 2019 and will continue for approximately 30 days. The rights offering is subject to the effectiveness of the Fund's registration statement filed with the U.S. Securities and Exchange Commission.

 

Finally, we are excited to announce that we have moved to new offices on the 27th floor of 53 State Street in Boston, where we have signed a long-term lease. We look forward to hosting our clients in our beautiful new space. As always, if you have any questions, please contact us at 1-877-256-8445.

 

Sincerely,

 

-s-Charles I Clough, Jr. 

 

Charles I Clough, Jr.

 

-s-Robert M. Zdunczyk 

 

Robert M. Zdunczyk 

 

 

Semi-Annual Report | April 30, 2019 7

 

 

Clough Global Equity Fund Shareholder Letter

 

April 30, 2019 (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 stock market index of world stocks. It is maintained by MSCI Inc. and is often used as a common benchmark for world or global stock funds. The index includes a collection of stocks of all the developed markets in the world as defined by MSCI.

 

Bloomberg Barclays U.S. Aggregate Bond Index: Measures the performance of the U.S. investment grade bond market. The 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.

 

 

8 www.cloughglobal.com

 

 

Clough Global Equity Fund Portfolio Allocation

 

April 30, 2019 (Unaudited)

 

Top 10 Equity Holdings^^ % of Total Portfolio
1. Citigroup, Inc. 4.36%
2. TransDigm Group, Inc. 3.29%
3. Starwood Property Trust, Inc. 3.19%
4. Microsoft Corp. 2.69%
5. HDFC Bank, Ltd. 2.64%
6. Softbank Group Corp. 2.58%
7. Larsen & Toubro, Ltd. 2.48%
8. Analog Devices, Inc. 2.40%
9. Micron Technology, Inc. 2.39%
10. Ares Capital Corp. 2.33%

 

Global Securities Holdings^ % of Total Portfolio
United States 66.34%
U.S. Multinationals 15.34%
China 7.84%
India 6.47%
Japan 2.58%
Switzerland 2.15%
Hong Kong 0.89%
United Kingdom 0.61%
Belgium 0.39%
Canada 0.37%
Other -2.98%
TOTAL INVESTMENTS 100.00%
Asset Allocation* % of Total Portfolio
Common Stock - US 52.03%
Common Stock - Foreign 34.63%
Exchange Traded Funds -4.57%
Total Return Swap Contracts 2.07%
Total Equities 84.16%
   
Preferred Stock 3.50%
Total Fixed Income 3.50%
   
Short-Term Investments 7.29%
Other (Cash) 4.92%
Purchased Options 0.13%
   
TOTAL INVESTMENTS 100.00%

 

Country Allocation**

Long 

Exposure 

%TNA 

Short 

Exposure 

%TNA 

Gross 

Exposure 

%TNA 

Net

 Exposure 

%TNA 

United States 93.6% -2.8% 96.4% 90.8%
U.S. Multinationals 26.9% -5.9% 32.8% 21.0%
China 10.7% 0.0% 10.7% 10.7%
India 8.9% 0.0% 8.9% 8.9%
Japan 3.5% 0.0% 3.5% 3.5%
Switzerland 2.9% 0.0% 2.9% 2.9%
Hong Kong 1.2% 0.0% 1.2% 1.2%
United Kingdom 0.8% 0.0% 0.8% 0.8%
Belgium 0.5% 0.0% 0.5% 0.5%
Canada 0.5% 0.0% 0.5% 0.5%
Other 0.0% -4.1% 4.1% -4.1%
TOTAL INVESTMENTS 149.5% -12.8% 162.3% 136.7%

 

*Percentages are based on total investments, including securities sold short and derivative contracts. Holdings are subject to change.
^Includes securities sold short, derivative contracts and foreign cash balances.
US Multinational Corporations – has more than 50% of revenues derived outside of the U.S.
**Calculated as percent of total net assets using value of cash traded securities and foreign cash balances, and notional value of derivative contracts.
^^Only long positions are listed.


 

Semi-Annual Report | April 30, 2019 9

 

 

Clough Global Opportunities Fund Shareholder Letter

 

April 30, 2019 (Unaudited)

 

The Clough Global Opportunities Fund (“GLO” or the “Fund”) was up 8.53% on net asset value (“NAV”) and 8.41% on market price for the first six months of the Fund’s current fiscal year. The Fund’s benchmark, 25% of the Bloomberg Barclays Aggregate Bond Index and 75% of the MSCI World Index, was up 8.39% for the same period of time.

 

The first half of the year (November 1, 2018 – April 30, 2019) witnessed a significant uptick in market volatility. November and especially December featured a dramatic sell off in risk assets with the market bottoming on Christmas Eve. Markets quickly rallied in January as Federal Reserve policy reversed course, signaling an end to rate hikes while trade war fears temporarily dissipated.

 

While reducing exposure at the end of the year, we decided to keep our high conviction long ideas intact, because we believed that attempts to trade around the steep equity selloffs simply risked being whipsawed. That strategy allowed the Fund to participate in the rally starting in January. As political headlines have resurfaced in India ahead of May elections and in China-US trade negotiations, we have kept our long positions in our two preferred emerging markets tactical while adding to long duration 30-year United States Treasury bonds.

 

We do not base our investment strategies on economic forecasts, but we do follow investment and credit cycles and we draw three conclusions from what we see today: (1) the dominant price trends are deflationary; (2) the Federal Reserve is more likely to ease than tighten; and (3) the economy will likely slow rather than fall into recession. No serious inventory imbalances are present and no serious overbuild in the nation’s capital stock, which would undermine pricing and profitability is visible (such as the technology boom in 2000 or housing in 2008). We believe that although temporary technical factors can knock the market down, the likelihood of a serious liquidity squeeze seems remote at this point.

 

TOP FIVE PERFORMERS

 

Carvana (CVNA) is a highly volatile stock that has landed in the Fund’s top five and bottom five recently. During the first half of the fiscal year, the online distributer of used cars was a top performer. It is a controversial stock with an astonishing 60% of the stock free-float held short. Because the company’s long-term plan seeks to capture the profits from financing many of its vehicles, there has been concern that it is selling its auto loan receivables to related parties and possibly inflating profits. But last month the company secured asset-backed financing in the public markets, dramatically reducing financial costs, a testimony to its market presence and dominant business model. The company is expected to soon reach desired markets throughout the United States, and its investment needs will slow. Revenues have continued to grow in excess of 100% annually. Free cash flow could reach $1 billion annually by 2022, according to some estimates. We think the company has the potential to grow several times its current size.

 

Transdigm (TDG) is a manufacturer and distributor of aircraft parts. It has grown organically and by acquisition, consistently improving its return on investment (“ROI”). Its acquisition of Esterline Corp, which is a large addition to its operation, opens up the likelihood of an acceleration in earnings growth. Management’s incentives are based totally on returns derived from acquisitions. Their record on this score is impressive.

 

The Fund added to duration as rates sold off at the end of 2018. The 30-year US Treasury positions were a top performer for the first half of the fiscal year as rates rallied lower in yield and higher in price after the Federal Reserve signaled an end to its rate hikes. We continue to believe in a low interest rate environment and will look to add to this position opportunistically.

 

Tesaro (TSRO), an oncology company focused on ovarian cancer, was acquired by GlaxoSmithKline for $4.5 billion. The offer represented a 62% premium over Tesaro’s prior closing price.

 

Alibaba (BABA) is another core position for the Fund. We have talked about the dynamics and the strength of the Chinese consumer over the years, and in our view, we are still in the relatively early innings of this story. Revenue growth continues to be very strong at Alibaba, with just announced revenue growing 40% from the previous year. The initial public offering (“IPO”) for its financial services arm should provide an additional catalyst for the stock.

 

BOTTOM FIVE PERFORMERS

 

Qualcomm (QCOM) was a short idea which went against us. Our view was that their core modem technology was getting commoditized and their royalty business model was unsustainable. At the same time, consensus was modelling an aggressive roll out of a 5G technology handset which was different from our view.

 

Yelp (YELP) is a business with a strong following both amongst businesses and consumers. However, management has mis executed on several occasions in the last couple of years. While the stock is cheap, we have rotated towards higher conviction ideas.

 

 

10 www.cloughglobal.com

 

 

Clough Global Opportunities Fund Shareholder Letter

 

April 30, 2019 (Unaudited)

 

A short position in a rare blood disease company Alexion (ALXN) detracted from performance. During the period, the stock gained as the company generated strong Q4 2018 results and provided conservative 2019 guidance. The company also hosted an analyst day that was well received by Wall Street as it focused on diversifying its pipeline. We continue to hold the short position as we believe the competitive pressures from emerging companies and biosimilars are underappreciated.

 

Apple (AAPL) is directly exposed to the China-US tariff dispute. The iPhone is largely manufactured in China and the supply chain is so entrenched that it will be hard to move it outside China. We have exited the position and will revisit at a later date.

 

Talend (TLND) is an infrastructure company where we are excited about the rapidly growing cloud business. However, the growth rate of the legacy business has slowed down significantly, and we have stepped aside.

 

RIGHTS OFFERING ANNOUNCED

 

We are pleased to report that on May 22, 2019, the Board of Trustees of GLO (the “Board”) authorized and set terms of an offering to shareholders of rights to purchase additional shares of the Fund. Shareholders on a record date to be established by the Fund's Board would be issued transferable rights entitling them to subscribe for one additional share for every five shares held (the “Primary Subscription”), with the right to subscribe for additional shares not subscribed for by others in the Primary Subscription. The Fund anticipates that the offering will commence in July 2019 and will continue for approximately 30 days. The rights offering is subject to the effectiveness of the Fund's registration statement filed with the U.S. Securities and Exchange Commission.

 

Finally, we are excited to announce that we have moved to new offices on the 27th floor of 53 State Street in Boston, where we have signed a long-term lease. We look forward to hosting our clients in our beautiful new space. As always, if you have any questions, please contact us at 1-877-256-8445.

 

Sincerely,

 

 -s-Charles I Clough, Jr.

 

Charles I Clough, Jr.

 

 -s-Robert M. Zdunczyk

 

Robert M. Zdunczyk

 

 

Semi-Annual Report | April 30, 2019 11

 

 

Clough Global Opportunities Fund Shareholder Letter

 

 April 30, 2019 (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 stock market index of world stocks. It is maintained by MSCI Inc. and is often used as a common benchmark for world or global stock funds. The index includes a collection of stocks of all the developed markets in the world as defined by MSCI.

 

Bloomberg Barclays U.S. Aggregate Bond Index: Measures the performance of the U.S. investment grade bond market. The 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, 2019 (Unaudited)

 

Top 10 Equity Holdings^^ % of Total Portfolio
1. Citigroup, Inc. 4.40%
2. TransDigm Group, Inc. 3.64%
3. Starwood Property Trust, Inc. 2.97%
4. Microsoft Corp. 2.79%
5. HDFC Bank, Ltd. 2.61%
6. Softbank Group Corp. 2.54%
7. Larsen & Toubro, Ltd. 2.45%
8. Analog Devices, Inc. 2.37%
9. Micron Technology, Inc. 2.35%
10. Ares Capital Corp. 2.16%

 

Global Securities Holdings^ % of Total Portfolio
United States 66.74%
U.S. Multinationals 15.23%
China 7.74%
India 6.39%
Japan 2.54%
Switzerland 1.85%
United Kingdom 0.91%
Hong Kong 0.88%
Canada 0.39%
Belgium 0.31%
Other -2.98%
TOTAL INVESTMENTS 100.00%
Asset Allocation* % of Total Portfolio
Common Stock - US 47.98%
Common Stock - Foreign 33.64%
Exchange Traded Funds -4.24%
Total Return Swap Contracts 2.03%
Total Equities 79.41%
   
Government L/T 4.67%
Corporate Debt 3.10%
Preferred Stock 2.73%
Total Fixed Income 10.50%
   
Short-Term Investments 7.18%
Other (Cash) 2.78%
Purchased Options 0.13%
   
TOTAL INVESTMENTS 100.00%

 

Country Allocation**

Long

Exposure

%TNA

Short

Exposure

%TNA

Gross

 Exposure

%TNA

Net

Exposure

%TNA

United States 95.6% -2.8% 98.4% 92.8%
U.S. Multinationals 26.7% -5.5% 32.2% 21.2%
China 10.8% 0.0% 10.8% 10.8%
India 8.9% 0.0% 8.9% 8.9%
Japan 3.5% 0.0% 3.5% 3.5%
Switzerland 2.6% 0.0% 2.6% 2.6%
United Kingdom 1.3% 0.0% 1.3% 1.3%
Hong Kong 1.2% 0.0% 1.2% 1.2%
Canada 0.5% 0.0% 0.5% 0.5%
Belgium 0.4% 0.0% 0.4% 0.4%
Other 0.0% -4.2% 4.2% -4.2%
TOTAL INVESTMENTS 151.5% -12.5% 164.0% 139.0%

 

*Percentages are based on total investments, including securities sold short and derivative contracts. Holdings are subject to change.
^Includes securities sold short, derivative contracts and foreign cash balances.
US Multinational Corporations – has more than 50% of revenues derived outside of the U.S.
**Calculated as percent of total net assets using value of cash traded securities and foreign cash balances, and notional value of derivative contracts.
^^Only long positions are listed.


 

Semi-Annual Report | April 30, 2019 13

 

 

Clough Global Dividend and Income Fund Statement of Investments

 

April 30, 2019 (Unaudited)

 

   Shares   Value 
COMMON STOCKS 92.42%          
Communication Services 6.42%          
Alphabet, Inc. - Class C(a)(b)(c)   1,475   $1,753,008 
Softbank Group Corp.   30,300    3,143,018 
T-Mobile US, Inc.(a)(b)(c)   9,600    700,704 
         5,596,730 
           
Consumer Discretionary 7.65%          
ANTA Sports Products, Ltd.   101,000    711,975 
Eicher Motors, Ltd.   2,400    702,822 
Home Depot, Inc.(b)(c)   14,890    3,033,093 
Service Corp. International(b)(c)   27,600    1,148,436 
Vail Resorts, Inc.(b)(c)   4,700    1,075,595 
         6,671,921 
           
Energy 0.09%          
Fairway Energy LP(a)(d)(e)(f)(g)(h)   130,700    81,295 
           
Financials 41.83%          
AIA Group, Ltd.   142,600    1,453,303 
American International Group, Inc.(b)(c)   22,900    1,089,353 
Ares Capital Corp.(b)   164,300    2,957,400 
Bank of America Corp.(b)(c)   98,591    3,014,913 
Barings BDC, Inc.(b)(c)   144,900    1,440,306 
Blackstone Mortgage Trust, Inc. - Class A(b)   60,100    2,138,959 
Citigroup, Inc.(b)(c)   86,930    6,145,951 
Golub Capital BDC, Inc.(b)   97,700    1,800,611 
Granite Point Mortgage Trust, Inc.(b)   121,100    2,328,753 
HDFC Bank, Ltd.   96,116    3,202,473 
JPMorgan Chase & Co.(b)(c)   22,400    2,599,520 
Morgan Stanley(b)   31,600    1,524,700 
Ping An Insurance Group Co. of China, Ltd. - Class H   61,000    734,429 
Solar Capital, Ltd.(b)   75,100    1,608,642 
Starwood Property Trust, Inc.(b)   138,800    3,199,340 
TPG Specialty Lending, Inc.(b)   61,800    1,253,922 
         36,492,575 
           
Health Care 7.86%          
Amgen, Inc.(b)(c)   3,790    679,623 
Baxter International, Inc.   9,800    747,740 
Eli Lilly & Co.(b)(c)   8,813    1,031,474 
Johnson & Johnson(b)(c)   5,150    727,180 
Pfizer, Inc.(b)(c)   61,900    2,513,759 
Thermo Fisher Scientific, Inc.   2,690    746,340 
Zoetis, Inc.(b)(c)   4,020    409,397 
         6,855,513 
           
Industrials 3.45%          
Larsen & Toubro, Ltd.   155,255    3,010,177 
   Shares   Value 
Information Technology 18.53%          
Analog Devices, Inc.(b)(c)   25,000   $2,906,000 
Broadcom, Ltd.(b)(c)   3,183    1,013,467 
KLA-Tencor Corp.(b)(c)   18,060    2,302,289 
Micron Technology, Inc.(a)(b)(c)   69,050    2,904,243 
Microsoft Corp.(b)(c)   31,310    4,089,086 
Visa, Inc. - Class A(b)(c)   13,500    2,219,805 
Xilinx, Inc.(b)(c)   6,080    730,451 
         16,165,341 
           
Real Estate 6.59%          
Community Healthcare Trust, Inc.(b)   107,700    3,928,896 
SBA Communications Corp.(a)(b)(c)   8,950    1,823,384 
         5,752,280 
           
TOTAL COMMON STOCKS          
(Cost $74,885,579)        80,625,832 
           
CLOSED-END FUNDS 2.63%          
Aberdeen Income Credit Strategies Fund(b)   11,665    148,612 
Advent Claymore Convertible Securities and Income Fund(b)(c)   9,000    134,910 
Apollo Senior Floating Rate Fund, Inc.(b)(c)   24,500    372,890 
Brookfield Real Assets Income Fund, Inc.(b)   13,400    296,676 
Cornerstone Strategic Value Fund, Inc.(b)(c)   24,800    304,792 
Cornerstone Total Return Fund, Inc.(b)(c)   25,500    307,787 
Gabelli Convertible and Income Securities Fund, Inc.(b)(c)   32,300    168,929 
Royce Value Trust, Inc.(b)   23,700    339,858 
Wells Fargo Multi-Sector Income Fund(b)   17,807    220,629 
           
TOTAL CLOSED-END FUNDS          
(Cost $2,226,095)        2,295,083 
           
EXCHANGE TRADED FUNDS 0.86%          
iShares U.S. Medical Devices ETF   3,340    750,799 
           
TOTAL EXCHANGE TRADED FUNDS          
(Cost $736,400)        750,799 


 

 

14 www.cloughglobal.com

 

 

Clough Global Dividend and Income Fund Statement of Investments

 

April 30, 2019 (Unaudited)

 

   Shares   Value 
PREFERRED STOCKS 8.45%          
Annaly Capital Management, Inc.          
Series H, 8.125%(b)(c)   10,640   $272,916 
Series G, 6.500%(b)(i)   37,476    923,034 
Ares Management Corp.          
Series A, 7.000%(b)   35,000    917,700 
First Republic Bank          
Series D, 5.500%(b)   35,000    896,700 
Global Medical REIT, Inc.          
Series A, 7.500%(b)   10,900    278,495 
M&T Bank Corp.          
Series C, 6.375%(b)   962    981,764 
New Mountain Finance Corp.,          
5.750%(b)   40,000    1,018,800 
PennyMac Mortgage Investment Trust          
Series A, 3M US L + 5.831%(b)(i)   22,000    564,740 
Series B, 3M US L + 5.99%(b)(i)   10,000    256,600 
Two Harbors Investment Corp.          
Series A, 3M US L + 5.66%(b)(i)   28,500    761,520 
Series C, 3M US L + 5.011%(b)(c)(i)   20,000    494,400 
           
TOTAL PREFERRED STOCKS          
(Cost $7,192,752)        7,366,669 
           
Underlying Security/Expiration Date/Exercise Price/Notional Amount  Contracts   Value 
PURCHASED OPTIONS 0.19%          
Put Options Purchased 0.19%          
iShares MSCI India ETF          
06/21/19, 34, $7,102,000   2,000    166,000 
           
Total Put Options Purchased          
(Cost $207,840)        166,000 
           
TOTAL PURCHASED OPTIONS          
(Cost $207,840)        166,000 

 

Description and Maturity Date  Principal Amount   Value 
CORPORATE BONDS 9.74%          
Bank of America Corp.          
10/21/2022, 2.503%  $500,000    493,557 
BP Capital Markets America, Inc.          
05/06/2022, 3.245%   288,000    292,385 
Branch Banking & Trust Co.          
06/01/2020, 2.250%   500,000    497,849 
Caterpillar, Inc.          
05/27/2021, 3.900%   500,000    513,613 
Citizens Financial Group, Inc.          
09/28/2022, 4.150%(b)(c)(d)   1,325,000    1,353,640 
Description and Maturity Date  Principal Amount   Value 
CORPORATE BONDS (continued)          
Main Street Capital Corp.          
12/01/2019, 4.500%(b)(c)  $1,000,000   $1,005,739 
Masco Corp.          
05/15/2047, 4.500%   750,000    686,773 
NextEra Energy Capital Holdings, Inc.          
10/01/2066, 3M US L + 2.0675%(b)(c)(i)   500,000    428,357 
Philip Morris International, Inc.          
11/02/2022, 2.500%   1,000,000    989,485 
SBA Tower Trust          
10/08/2020, 3.156%(d)   500,000    501,476 
03/15/2023, 3.448%(b)(c)(d)   500,000    503,507 
Solar Capital, Ltd.          
01/20/2023, 4.500%(b)(c)   500,000    488,566 
TPG Specialty Lending, Inc.          
01/22/2023, 4.500%(b)(c)   750,000    744,259 
           
TOTAL CORPORATE BONDS          
(Cost $8,543,445)        8,499,206 
           
ASSET/MORTGAGE BACKED SECURITIES 0.11%
United States Small Business Administration          
Series 2008-20L, Class 1, 12/01/2028, 6.220%   86,735    93,245 
           
TOTAL ASSET/MORTGAGE BACKED SECURITIES
(Cost $86,735)        93,245 
           
GOVERNMENT & AGENCY OBLIGATIONS 20.62%
U.S. Treasury Bonds          
02/15/2020, 3.625%(b)   3,000,000    3,027,656 
11/15/2026, 6.500%(b)   1,000,000    1,279,766 
08/15/2029, 6.125%(b)   1,000,000    1,326,758 
05/15/2030, 6.250%(b)   1,000,000    1,356,465 
02/15/2041, 4.750%(b)   1,000,000    1,314,785 
05/15/2041, 4.375%(b)   1,000,000    1,253,496 
08/15/2043, 3.625%(b)   1,000,000    1,126,875 
11/15/2043, 3.750%(b)   1,000,000    1,149,609 
05/15/2048, 3.125%(b)   4,000,000    4,149,141 
U.S. Treasury Note          
07/31/2020, 2.625%   2,000,000    2,007,031 
           
TOTAL GOVERNMENT & AGENCY OBLIGATIONS
(Cost $17,841,082)        17,991,582 


 

 

Semi-Annual Report | April 30, 2019 15

 

 

Clough Global Dividend and Income Fund Statement of Investments

 

April 30, 2019 (Unaudited)

 

   Shares/Principal Amount   Value 
SHORT-TERM INVESTMENTS 4.79%  
Money Market Funds 2.52%          
BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (2.306% 7-day yield)   2,199,995   $2,199,995 
         2,199,995 
U.S. Treasury Bills 2.27%          
U.S. Treasury Bills          
09/05/2019, 2.418%(j)  $1,000,000    991,665 
12/05/2019, 2.410%(j)   1,000,000    986,118 
         1,977,783 
TOTAL SHORT-TERM INVESTMENTS  
(Cost $4,176,668)        4,177,778 
           
Total Investments - 139.81%          
(Cost $115,896,596)        121,966,194 
           
Liabilities in Excess of Other Assets - (39.81%)(k)        (34,728,588)
           
NET ASSETS - 100.00%       $87,237,606 

 

SCHEDULE OF SECURITIES SOLD SHORT (a)  Shares   Value 
COMMON STOCKS (5.66%)          
Financials (4.00%)          
Deutsche Bank AG   (102,000)   (844,560)
Mediobanca Banca di Credito Finanziario SpA   (114,112)   (1,209,488)
Societe Generale S.A.   (7,660)   (242,451)
UniCredit SpA   (86,454)   (1,195,601)
         (3,492,100)
           
Health Care (0.38%)          
Alexion Pharmaceuticals, Inc.   (2,000)   (272,260)
McKesson Corp.   (480)   (57,240)
         (329,500)
           
Industrials (0.49%)          
Stericycle, Inc.   (7,300)   (426,247)
           
Information Technology (0.79%)          
Amkor Technology, Inc.   (39,400)   (356,964)
Manhattan Associates, Inc.   (5,000)   (337,250)
         (694,214)
           
TOTAL COMMON STOCKS          
(Proceeds $4,893,126)        (4,942,061)
           
EXCHANGE TRADED FUNDS (5.98%)          
iShares U.S. Healthcare Providers ETF   (10,300)   (1,684,668)
SCHEDULE OF SECURITIES SOLD SHORT (a) (continued)  Shares   Value 
EXCHANGE TRADED FUNDS (continued)          
iShares® Nasdaq Biotechnology ETF   (5,490)  $(584,246)
SPDR® S&P® Biotech ETF   (34,600)   (2,947,920)
           
TOTAL EXCHANGE TRADED FUNDS          
(Proceeds $5,004,479)        (5,216,834)
           
TOTAL SECURITIES SOLD SHORT          
(Proceeds $9,897,605)       $(10,158,895)

 

Investment Abbreviations:

1D FEDEF - Federal Funds Effective Rate (Daily)

LIBOR - London Interbank Offered Rate

 

Libor Rates:

3M US L - 3 Month LIBOR as of April 30, 2019 was 2.58%

 

(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, 2019, the aggregate value of those securities was $83,921,244, representing 96.20% 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, 2019.

(d)Security 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, 2019, these securities had an aggregate value of $2,439,918 or 2.80% 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, 2019, these securities had an aggregate value of $81,295 or 0.09% of net assets.

(f)Fair valued security; valued by management in accordance with procedures approved by the Board. As of April 30, 2019, these securities had an aggregate value of $81,295 or 0.09% of total net assets.

(g)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).

(h)Security filed for bankruptcy on November 26, 2018.

(i)Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at April 30, 2019. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above.

(j)Rate shown represents the bond equivalent yield to maturity at date of purchase.

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


 

 

16 www.cloughglobal.com

 

 

Clough Global Dividend and Income Fund Statement of Investments

 

April 30, 2019 (Unaudited)

 

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, 2019 17

 

 

Clough Global Dividend and Income Fund
 
Statement of Investments
 
  April 30, 2019 (Unaudited)

 

TOTAL RETURN SWAP CONTRACTS
                            
Counter Party 

Reference

Entity/Obligation

   

Notional

Amount

  

Floating Rate

Paid by the Fund

 

Floating

Rate Index

 

Termination

Date

   Value    

Net Unrealized

Appreciation

 
Morgan Stanley  Jiangsu Yanghe Brewery Joint  $659,430   1D FEDEF + 255 bps  1 D FEDEF  10/01/2020  $757,993   $98,563 
Morgan Stanley  Kweichow Moutai Co., Ltd.   1,436,166   1D FEDEF + 250 bps  1 D FEDEF  05/29/2020   1,749,262    313,096 
      $2,095,596            $2,507,255   $411,659 

 

See Notes to the Financial Statements.  
 
 
 
 
18 www.cloughglobal.com

 

 

Clough Global Equity Fund
 
Statement of Investments
 
  April 30, 2019 (Unaudited)

 

   Shares  Value
COMMON STOCKS 121.49%          
Communication Services 14.30%          
Alphabet, Inc. - Class C(a)(b)(c)   3,050   $3,624,864 
China Tower Corp., Ltd. - Class H   9,470,000    2,559,199 
GCI Liberty, Inc. - Class A(a)(b)(c)   69,721    4,156,766 
Momo, Inc. - Sponsored ADR(b)   44,000    1,543,080 
Netflix, Inc.(a)(b)(c)   4,904    1,817,128 
Softbank Group Corp.   52,100    5,404,331 
T-Mobile US, Inc.(a)(b)   38,500    2,810,115 
         21,915,483 
           
Consumer Discretionary 14.78%          
Alibaba Group Holding, Ltd. - Sponsored ADR(a)(b)(c)   23,570    4,373,885 
Amazon.com, Inc.(a)(b)(c)   2,082    4,011,015 
ANTA Sports Products, Ltd.   174,000    1,226,571 
Carvana Co.(a)(b)   59,200    4,236,352 
Eicher Motors, Ltd.   4,000    1,171,370 
Floor & Decor Holdings, Inc. - Class A(a)(b)   26,700    1,282,134 
Home Depot, Inc.(b)(c)   17,670    3,599,379 
Service Corp. International(b)   33,300    1,385,613 
Wayfair, Inc. - Class A(a)(b)   8,380    1,358,817 
         22,645,136 
           
Energy 0.09%          
Fairway Energy LP(a)(d)(e)(f)(g)(h)   217,600    135,347 
           
Financials 34.86%          
AIA Group, Ltd.   184,400    1,879,306 
Ares Capital Corp.(b)   271,000    4,878,000 
Bank of America Corp.(b)(c)   140,005    4,281,353 
Blackstone Mortgage Trust, Inc. - Class A(b)   106,700    3,797,453 
Citigroup, Inc.(b)(c)   129,319    9,142,853 
Golub Capital BDC, Inc.(b)   193,109    3,558,999 
Granite Point Mortgage Trust, Inc.(b)   150,300    2,890,269 
HDFC Bank, Ltd.   166,232    5,538,657 
JPMorgan Chase & Co.(b)(c)   29,200    3,388,660 
Morgan Stanley(b)   49,000    2,364,250 
Ping An Insurance Group Co. of China, Ltd. - Class H   105,500    1,270,201 
Solar Capital, Ltd.(b)   104,400    2,236,248 
Starwood Property Trust, Inc.(b)   290,100    6,686,805 
TPG Specialty Lending, Inc.(b)   74,000    1,501,460 
         53,414,514 
           
Health Care 18.25%          
Align Technology, Inc.(a)(b)   3,980    1,292,226 
Amgen, Inc.(b)(c)   4,000    717,280 
Amphivena Therapeutics, Inc. - Series C(a)(d)(e)(f)(g)   334,425    1,199,997 
   Shares  Value
Health Care (continued)          
Apellis Pharmaceuticals, Inc.(a)(b)(c)   87,697   $1,737,278 
Baxter International, Inc.   16,900    1,289,470 
BeiGene, Ltd. - ADR(a)(b)(c)   9,100    1,130,493 
BioMarin Pharmaceutical, Inc.(a)(b)(c)   15,000    1,282,950 
Boston Scientific Corp.(a)(b)   33,700    1,250,944 
Centrexion Therapeutics(a)(d)(e)(f)(g)   66,719    749,988 
Centrexion Therapeutics Corp.(a)(e)(f)(g)   4,336    48,741 
Correvio Pharma Corp.(a)(b)(c)   319,900    767,760 
CRISPR Therapeutics AG(a)(b)(c)   96,367    3,872,990 
Elanco Animal Health, Inc.(a)(b)(c)   31,000    976,500 
Equillium, Inc.(a)(b)(c)   43,200    269,568 
Galapagos NV - Sponsored ADR(a)(b)(c)   7,150    822,250 
Gossamer Bio, Inc.(a)(b)   26,200    444,352 
Gossamer Biosciences(a)(d)(e)(f)   58,721    968,521 
GW Pharmaceuticals PLC - ADR(a)(b)   7,570    1,281,677 
IDEXX Laboratories, Inc.(a)(b)   2,554    592,528 
Idorsia, Ltd.(a)(d)   32,520    642,772 
Illumina, Inc.(a)(b)   1,700    530,400 
Intra-Cellular Therapies, Inc.(a)(b)   20,500    269,985 
Pfizer, Inc.(b)(c)   38,000    1,543,180 
Teladoc Health, Inc.(a)(b)(c)   10,920    621,130 
Thermo Fisher Scientific, Inc.   4,650    1,290,142 
Veracyte, Inc.(a)(b)(c)   51,500    1,177,805 
Vertex Pharmaceuticals, Inc.(a)(b)(c)   3,212    542,764 
Zoetis, Inc.(b)   6,430    654,831 
         27,968,522 
           
Industrials 7.91%          
Larsen & Toubro, Ltd.   268,471    5,205,278 
TransDigm Group, Inc.(a)(b)   14,320    6,909,686 
         12,114,964 
           
Information Technology 29.37%          
Adobe Systems, Inc.(a)(b)   10,370    2,999,523 
Analog Devices, Inc.(b)   43,300    5,033,192 
Broadcom, Ltd.(b)   3,923    1,249,083 
Coupa Software, Inc.(a)(b)   10,180    1,051,900 
Guidewire Software, Inc.(a)(b)(c)   13,300    1,416,450 
Inphi Corp(a)(b)(c)   16,100    735,126 
KLA-Tencor Corp.(b)(c)   31,000    3,951,880 
Micron Technology, Inc.(a)(b)(c)   118,990    5,004,719 
Microsoft Corp.(b)(c)   43,140    5,634,084 
Pluralsight, Inc. - Class A(a)(b)   44,900    1,593,501 
Proofpoint, Inc.(a)(b)   12,800    1,605,376 
RingCentral, Inc. - Class A(a)(b)(c)   10,700    

1,245,159

 


 

Semi-Annual Report | April 30, 2019 19

 

 

Clough Global Equity Fund
 
Statement of Investments
 
  April 30, 2019 (Unaudited)

 

   Shares  Value
Information Technology (continued)          
salesforce.com, Inc.(a)(b)   15,900   $2,629,065 
ServiceNow, Inc.(a)(b)(c)   15,620    4,240,986 
Twilio, Inc. - Class A(a)(b)   8,100    1,110,834 
Visa, Inc. - Class A(b)(c)   17,400    2,861,082 
WNS Holdings, Ltd. - ADR(a)(b)   24,000    1,371,600 
Xilinx, Inc.(b)(c)   10,510    1,262,671 
         44,996,231 
           
Real Estate 1.93%          
SBA Communications Corp.(a)(b)(c)   14,500    2,954,085 
           
TOTAL COMMON STOCKS          
(Cost $171,700,869)        186,144,282 
           
CLOSED-END FUNDS 2.81%          
Apollo Senior Floating Rate Fund, Inc.(b)   20,000    304,400 
Cornerstone Strategic Value Fund, Inc.(b)(c)   81,400    1,000,406 
Cornerstone Total Return Fund, Inc.(b)   84,200    1,016,302 
Duff & Phelps Global Utility Income Fund, Inc.(b)   29,600    440,448 
Gabelli Convertible and Income Securities Fund, Inc.(b)   52,800    276,144 
Royce Value Trust, Inc.(b)   58,200    834,588 
Voya Global Equity Dividend and Premium Opportunity Fund(b)   31,200    208,416 
Wells Fargo Multi-Sector Income Fund(b)   17,800    220,542 
           
TOTAL CLOSED-END FUNDS          
(Cost $4,218,524)        4,301,246 
           
EXCHANGE TRADED FUNDS 0.84%          
iShares U.S. Medical Devices ETF(b)   5,710    1,283,551 
           
TOTAL EXCHANGE TRADED FUNDS          
(Cost $1,258,935)        1,283,551 
           
PREFERRED STOCKS 4.79%          
Annaly Capital Management, Inc. Series G, 6.500%(b)(i)   60,000    1,477,800 
Ares Management Corp. Series A, 7.000%(b)   71,000    1,861,620 
First Republic Bank Series D, 5.500%(b)   2,464    63,128 
Global Medical REIT, Inc. Series A, 7.500%(b)   17,700    452,235 
   Shares  Value
PREFERRED STOCKS (continued)          
PennyMac Mortgage Investment Trust          
Series A, 3M US L + 5.831%(b)(i)   48,692   $1,249,923 
Series B, 3M US L + 5.99%(b)(i)   10,000    256,600 
Two Harbors Investment Corp.          
Series A, 3M US L + 5.66%(b)(i)   51,000    1,362,720 
Series C, 3M US L + 5.011%(b)(c)(i)   25,000    618,000 
           
TOTAL PREFERRED STOCKS          
(Cost $7,116,820)        7,342,026 
       
Underlying Security/Expiration Date/
Exercise Price/Notional Amount
  Contracts  Value
PURCHASED OPTIONS 0.18%          
Put Options Purchased 0.18%          
iShares MSCI India ETF          
06/21/19, 34, $12,073,400   3,400    282,200 
           
Total Put Options Purchased          
(Cost $353,334)        282,200 
           
TOTAL PURCHASED OPTIONS          
(Cost $353,334)        282,200 
       
  

Shares/Principal

Amount

  Value
SHORT-TERM INVESTMENTS 9.98%          
Money Market Funds 4.81%          
BlackRock Liquidity Funds, T- Fund Portfolio - Institutional Class (2.306% 7-day yield)   7,362,690    7,362,690 
         7,362,690 
U.S. Treasury Bills 5.17%          
U.S. Treasury Bills          
06/25/2019, 2.427%(j)  $2,000,000    1,992,713 
09/26/2019, 2.375%(j)   3,000,000    2,970,801 
10/24/2019, 2.380%(j)   3,000,000    2,965,460 
         7,928,974 
TOTAL SHORT-TERM INVESTMENTS  
(Cost $15,291,201)        15,291,664 
           
Total Investments - 140.09%          
(Cost $199,939,683)        214,644,969 
           
Liabilities in Excess of Other Assets - (40.09%)(k)        (61,427,623)
           
NET ASSETS - 100.00%       $153,217,346 


 

20 www.cloughglobal.com

 

 

Clough Global Equity Fund
 
Statement of Investments
 
  April 30, 2019 (Unaudited)

 

SCHEDULE OF SECURITIES SOLD SHORT (a)  Shares  Value
COMMON STOCKS (5.70%)          
Financials (4.09%)          
Deutsche Bank AG   (189,200)  $(1,566,576)
Mediobanca Banca di Credito Finanziario SpA   (188,076)   (1,993,441)
Societe Generale S.A.   (13,346)   (422,422)
UniCredit SpA   (164,981)   (2,281,577)
         (6,264,016)
           
Health Care (0.37%)          
Alexion Pharmaceuticals, Inc.   (3,520)   (479,178)
McKesson Corp.   (700)   (83,475)
         (562,653)
           
Industrials (0.46%)          
Stericycle, Inc.   (12,200)   (712,358)
           
Information Technology (0.78%)          
Amkor Technology, Inc.   (67,700)   (613,362)
Manhattan Associates, Inc.   (8,600)   (580,070)
         (1,193,432)
           
TOTAL COMMON STOCKS          
(Proceeds $8,700,141)        (8,732,459)
           
EXCHANGE TRADED FUNDS (7.09%)          
Health Care Select Sector SPDR® Fund   (21,500)   (1,919,090)
iShares U.S. Healthcare Providers ETF   (18,000)   (2,944,080)
iShares® Nasdaq Biotechnology ETF   (8,640)   (919,469)
SPDR® S&P® Biotech ETF   (59,700)   (5,086,440)
           
TOTAL EXCHANGE TRADED FUNDS          
(Proceeds $10,339,967)        (10,869,079)
           
TOTAL SECURITIES SOLD SHORT          
(Proceeds $19,040,108)       $(19,601,538)

 

Investment Abbreviations:

1D FEDEF - Federal Funds Effective Rate (Daily)

LIBOR - London Interbank Offered Rate

 

Libor Rates:

3M US L - 3 Month LIBOR as of April 30, 2019 was 2.58%

 

(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, 2019, the aggregate value of those securities was $158,314,743, representing 103.33% 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, 2019.
(d) Security 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, 2019, these securities had an aggregate value of $3,696,625 or 2.41% 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, 2019, these securities had an aggregate value of $3,102,594 or 2.02% of net assets.
(f) Fair valued security; valued by management in accordance with procedures approved by the Board. As of April 30, 2019, these securities had an aggregate value of $3,102,594 or 2.02% of total net assets.
(g) 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).
(h) Security filed for bankruptcy on November 26, 2018.
(i) Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at April 30, 2019. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above.
(j) Rate shown represents the bond equivalent yield to maturity at date of purchase.
(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, 2019 21

 

 

Clough Global Equity Fund
 
Statement of Investments
 
  April 30, 2019 (Unaudited)

 

TOTAL RETURN SWAP CONTRACTS
                            
Counter Party 

Reference

Entity/Obligation

   

Notional

Amount

  

Floating Rate

Paid by the Fund

 

Floating

Rate Index

 

Termination

Date

   Value    Net Unrealized Appreciation 
Morgan Stanley  Jiangsu Yanghe Brewery Joint  $1,158,512   1D FEDEF + 255 bps  1 D FEDEF  10/01/2020  $1,322,121   $163,609 
Morgan Stanley  Kweichow Moutai Co., Ltd.   2,473,415   1D FEDEF + 250 bps  1 D FEDEF  5/29/2020   3,017,509    544,094 
      $3,631,927            $4,339,630   $707,703 

 

See Notes to the Financial Statements.  
 
 
 
 
22 www.cloughglobal.com

 

 

Clough Global Opportunities Fund
 
Statement of Investments
 
  April 30, 2019 (Unaudited)

 

   Shares  Value
COMMON STOCKS 117.65%          
Communication Services 14.66%          
Alphabet, Inc. - Class C(a)(b)   7,020   $8,343,130 
China Tower Corp., Ltd. - Class H   21,786,000    5,887,508 
GCI Liberty, Inc. - Class A(a)(b)(c)   164,262    9,793,300 
Momo, Inc. - Sponsored ADR(b)(c)   101,300    3,552,591 
Netflix, Inc.(a)(b)   11,294    4,184,879 
Softbank Group Corp.   119,800    12,426,850 
T-Mobile US, Inc.(a)(b)(c)   101,400    7,401,186 
         51,589,444 
           
Consumer Discretionary 14.86%          
Alibaba Group Holding, Ltd. - Sponsored ADR(a)(b)(c)   54,270    10,070,884 
Amazon.com, Inc.(a)(b)(c)   4,782    9,212,619 
ANTA Sports Products, Ltd.   401,000    2,826,751 
Carvana Co.(a)(b)   138,220    9,891,023 
Eicher Motors, Ltd.   9,200    2,694,152 
Floor & Decor Holdings, Inc. - Class A(a)(b)   61,600    2,958,032 
Home Depot, Inc.(b)(c)   40,770    8,304,849 
Service Corp. International(b)   76,900    3,199,809 
Wayfair, Inc. - Class A(a)(b)   19,260    3,123,009 
         52,281,128 
           
Energy 0.10%          
Fairway Energy LP(a)(d)(e)(f)(g)(h)   536,000    333,392 
           
Financials 32.21%          
AIA Group, Ltd.   423,800    4,319,143 
Ares Capital Corp.(b)   586,800    10,562,400 
Bank of America Corp.(b)(c)   336,210    10,281,302 
Blackstone Mortgage Trust, Inc. - Class A(b)   244,300    8,694,637 
Citigroup, Inc.(b)(c)   304,227    21,508,849 
Golub Capital BDC, Inc.(b)   313,957    5,786,227 
HDFC Bank, Ltd.   382,930    12,758,782 
JPMorgan Chase & Co.(b)(c)   70,200    8,146,710 
Morgan Stanley   112,500    5,428,125 
Ping An Insurance Group Co. of China, Ltd. - Class H   242,500    2,919,657 
Solar Capital, Ltd.(b)   216,231    4,631,668 
Starwood Property Trust, Inc.(b)   628,986    14,498,127 
TPG Specialty Lending, Inc.(b)   186,183    3,777,653 
         113,313,280 
           
Health Care 16.33%          
Align Technology, Inc.(a)(b)(c)   9,145    2,969,199 
Amgen, Inc.(b)(c)   10,720    1,922,310 
Amphivena Therapeutics, Inc. - Series C(a)(d)(e)(f)(g)   780,326    2,799,997 
   Shares  Value
Health Care (continued)          
Apellis Pharmaceuticals, Inc.(a)(b)(c)   214,401   $4,247,284 
Baxter International, Inc.   38,800    2,960,440 
BeiGene, Ltd. - ADR(a)(b)(c)   21,200    2,633,676 
BioMarin Pharmaceutical, Inc.(a)(b)(c)   18,600    1,590,858 
Boston Scientific Corp.(a)(b)   25,800    957,696 
Centrexion Therapeutics(a)(d)(e)(f)(g)   217,952    2,449,998 
Centrexion Therapeutics Corp.(a)(e)(f)(g)   14,166    159,240 
Correvio Pharma Corp.(a)   797,281    1,913,474 
CRISPR Therapeutics AG(a)(b)(c)   225,010    9,043,152 
Elanco Animal Health, Inc.(a)(b)(c)   71,300    2,245,950 
Equillium, Inc.(a)(b)   99,800    622,752 
Galapagos NV - Sponsored ADR(a)   13,010    1,496,150 
Gossamer Bio, Inc.(a)(b)   60,500    1,026,080 
Gossamer Biosciences(a)(d)(e)(f)   113,988    1,880,072 
GW Pharmaceuticals PLC - ADR(a)(b)(c)   17,380    2,942,608 
IDEXX Laboratories, Inc.(a)(b)(c)   5,885    1,365,320 
Illumina, Inc.(a)(b)(c)   3,900    1,216,800 
Intra-Cellular Therapies, Inc.(a)(b)   51,574    679,230 
Pfizer, Inc.(b)(c)   77,800    3,159,458 
Teladoc Health, Inc.(a)(b)(c)   25,040    1,424,275 
Thermo Fisher Scientific, Inc.   10,690    2,965,940 
Vertex Pharmaceuticals, Inc.(a)(b)(c)   7,408    1,251,804 
Zoetis, Inc.(b)(c)   15,140    1,541,858 
         57,465,621 
           
Industrials 8.46%          
Larsen & Toubro, Ltd.   618,493    11,991,715 
TransDigm Group, Inc.(a)(b)   36,860    17,785,687 
         29,777,402 
           
Information Technology 29.05%          
Adobe Systems, Inc.(a)(b)   23,770    6,875,473 
Analog Devices, Inc.(b)   99,700    11,589,128 
Broadcom, Ltd.(b)   9,141    2,910,494 
Guidewire Software, Inc.(a)(b)(c)   30,600    3,258,900 
KLA-Tencor Corp.(b)(c)   71,240    9,081,675 
Micron Technology, Inc.(a)(b)(c)   273,200    11,490,792 
Microsoft Corp.(b)(c)   104,500    13,647,700 
Pluralsight, Inc. - Class A(a)(b)   103,900    3,687,411 
Proofpoint, Inc.(a)(b)   29,430    3,691,111 
RingCentral, Inc. - Class A(a)(b)(c)   24,700    2,874,339 
salesforce.com, Inc.(a)(b)(c)   36,700    6,068,345 
ServiceNow, Inc.(a)(b)(c)   35,865    9,737,706 
Twilio, Inc. - Class A(a)(b)   18,800    2,578,232 
Visa, Inc. - Class A(b)(c)   52,600    8,649,018 


 
Semi-Annual Report | April 30, 2019 23

 

 

Clough Global Opportunities Fund
 
Statement of Investments
 
  April 30, 2019 (Unaudited)

 

   Shares  Value
Information Technology (continued)          
WNS Holdings, Ltd. - ADR(a)(b)(c)   55,247   $3,157,366 
Xilinx, Inc.(b)(c)   24,200    2,907,388 
         102,205,078 
           
Real Estate 1.98%          
SBA Communications Corp.(a)(b)(c)   34,100    6,947,193 
           
TOTAL COMMON STOCKS          
(Cost $382,686,564)        413,912,538 
           
CLOSED-END FUNDS 1.54%          
Cornerstone Strategic Value Fund, Inc.(b)   191,400    2,352,306 
Cornerstone Total Return Fund, Inc.(b)   197,900    2,388,673 
Royce Value Trust, Inc.(b)   46,800    671,112 
           
TOTAL CLOSED-END FUNDS          
(Cost $5,213,009)        5,412,091 
           
EXCHANGE TRADED FUNDS 0.84%          
iShares U.S. Medical Devices ETF(b)   13,160    2,958,236 
           
TOTAL EXCHANGE TRADED FUNDS          
(Cost $2,901,504)        2,958,236 
           
PREFERRED STOCKS 3.78%          
Ares Management Corp.          
Series A, 7.000%(b)   147,000    3,854,340 
M&T Bank Corp.          
Series A, 6.375%(b)   3,000    3,058,740 
PennyMac Mortgage Investment Trust          
Series B, 3M US L + 5.99%(b)(i)   70,000    1,796,200 
Two Harbors Investment Corp.          
Series A, 3M US L + 5.66%(b)(i)   75,000    2,004,000 
Series C, 3M US L + 5.011%(b)(c)(i)   105,000    2,595,600 
           
TOTAL PREFERRED STOCKS          
(Cost $12,978,250)        13,308,880 
           

Underlying Security/Expiration Date/      
Exercise Price/Notional Amount  Contracts  Value
PURCHASED OPTIONS 0.19%          
Put Options Purchased 0.19%          
iShares MSCI India ETF          
06/21/19, 34, $27,697,800   7,800   $647,400 
           
Total Put Options Purchased          
(Cost $810,611)        647,400 
           
TOTAL PURCHASED OPTIONS          
(Cost $810,611)        647,400 
           

Description and

Maturity Date

 

Principal

Amount

  Value
CORPORATE BONDS 4.31%          
Bank of America Corp.          
10/21/2022, 2.503%  $2,000,000    1,974,229 
BP Capital Markets America, Inc.          
05/06/2022, 3.245%   1,500,000    1,522,836 
NextEra Energy Capital Holdings, Inc.          
10/01/2066, 3M US L + 2.0675%(b)(i)   2,500,000    2,141,788 
SBA Tower Trust          
10/08/2020, 3.156%(d)   1,500,000    1,504,428 
Solar Capital, Ltd.          
01/20/2023, 4.500%(b)   2,500,000    2,442,829 
SunTrust Bank/Atlanta GA          
01/29/2021, 3M US L + 0.2975%(i)   1,355,000    1,353,065 
TPG Specialty Lending, Inc.          
01/22/2023, 4.500%(b)(c)   4,250,000    4,217,468 
           
TOTAL CORPORATE BONDS          
(Cost $15,290,459)        15,156,643 
           
GOVERNMENT & AGENCY OBLIGATIONS 6.48%
U.S. Treasury Bonds          
02/15/2041, 4.750%(b)   3,000,000    3,944,355 
05/15/2041, 4.375%(b)   3,000,000    3,760,488 
05/15/2045, 3.000%(b)   4,000,000    4,064,219 
05/15/2048, 3.125%(b)   7,500,000    7,779,639 
11/15/2048, 3.375%   3,000,000    3,265,547 
           
TOTAL GOVERNMENT & AGENCY OBLIGATIONS
(Cost $22,210,033)        22,814,248 
           


 
 
 
 
24 www.cloughglobal.com

 

 

Clough Global Opportunities Fund
 
Statement of Investments
 
  April 30, 2019 (Unaudited)

 

   Shares/Principal
Amount
  Value
SHORT-TERM INVESTMENTS 9.97%  
Money Market Funds 4.90%          
BlackRock Liquidity Funds, T- Fund Portfolio - Institutional Class (2.306% 7-day yield)   17,237,868   $17,237,868 
         17,237,868 
U.S. Treasury Bills 5.07%          
U.S. Treasury Bills          
06/25/2019, 2.427%(j)  $6,000,000    5,978,137 
09/26/2019, 2.375%(j)   6,000,000    5,941,602 
10/24/2019, 2.380%(j)   6,000,000    5,930,920 
         17,850,659 
TOTAL SHORT-TERM INVESTMENTS
(Cost $35,087,605)        35,088,527 
           
Total Investments - 144.76%          
(Cost $477,178,035)        509,298,563 
           
Liabilities in Excess of Other Assets - (44.76%)(k)        (157,481,209)
           
NET ASSETS - 100.00%       $351,817,354 
       
SCHEDULE OF SECURITIES SOLD SHORT (a)  Shares  Value
COMMON STOCKS (5.78%)          
Financials (4.16%)          
Deutsche Bank AG   (440,700)   (3,648,996)
Mediobanca Banca di Credito Finanziario SpA   (439,854)   (4,662,068)
Societe Generale S.A.   (30,544)   (966,765)
UniCredit SpA   (385,827)   (5,335,731)
         (14,613,560)
           
Health Care (0.37%)          
Alexion Pharmaceuticals, Inc.   (8,080)   (1,099,930)
McKesson Corp.   (1,730)   (206,303)
         (1,306,233)
           
Industrials (0.47%)          
Stericycle, Inc.   (28,500)   (1,664,115)
           
Information Technology (0.78%)          
Amkor Technology, Inc.   (155,700)   (1,410,642)
Manhattan Associates, Inc.   (19,900)   (1,342,255)
         (2,752,897)
           
TOTAL COMMON STOCKS          
(Proceeds $20,263,256)        (20,336,805)
           
EXCHANGE TRADED FUNDS (6.74%)          
Health Care Select Sector SPDR® Fund   (34,050)   (3,039,303)
           
SCHEDULE OF SECURITIES SOLD      
SHORT (a) (continued)  Shares  Value
EXCHANGE TRADED FUNDS (continued)          
iShares U.S. Healthcare Providers ETF   (41,300)  $(6,755,028)
iShares® Nasdaq Biotechnology ETF   (20,640)   (2,196,509)
SPDR® S&P® Biotech ETF   (137,400)   (11,706,480)
           
TOTAL EXCHANGE TRADED FUNDS          
(Proceeds $22,593,495)        (23,697,320)
           
TOTAL SECURITIES SOLD SHORT          
(Proceeds $42,856,751)       $(44,034,125)

 

Investment Abbreviations:

1D FEDEF - Federal Funds Effective Rate (Daily)

LIBOR - London Interbank Offered Rate

 

Libor Rates:

3M US L - 3 Month LIBOR as of April 30, 2019 was 2.58%

 

(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, 2019, the aggregate value of those securities was $351,850,491, representing 100.01% 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, 2019.
(d) Security 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, 2019, these securities had an aggregate value of $8,967,887 or 2.55% 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, 2019, these securities had an aggregate value of $7,622,699 or 2.17% of net assets.
(f) Fair valued security; valued by management in accordance with procedures approved by the Board. As of April 30, 2019, these securities had an aggregate value of $7,622,699 or 2.17% of total net assets.
(g) 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).
(h) Security filed for bankruptcy on November 26, 2018.
(i) Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at April 30, 2019. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above.
(j) Rate shown represents the bond equivalent yield to maturity at date of purchase.
(k) Includes cash which is being held as collateral for total return swap contracts and securities sold short.


 

Semi-Annual Report | April 30, 2019 25

 

 

Clough Global Opportunities Fund
 
Statement of Investments
 
  April 30, 2019 (Unaudited)

 

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.



 

26 www.cloughglobal.com

 

 

Clough Global Opportunities Fund
 
Statement of Investments
 
  April 30, 2019 (Unaudited)

 

TOTAL RETURN SWAP CONTRACTS

 

Counter Party 

Reference

Entity/Obligation

 

Notional

Amount

 

Floating Rate

Paid by the Fund

 

Floating

Rate Index

 

Termination

Date

  Value  Net Unrealized Appreciation
Morgan Stanley  Jiangsu Yanghe Brewery Joint  $2,636,145   1D FEDEF + 255 bps  1 D FEDEF  10/01/2020  $3,025,124   $388,979 
Morgan Stanley  Kweichow Moutai Co., Ltd.   5,675,546   1D FEDEF + 250 bps  1 D FEDEF  5/29/2020   6,921,432    1,245,886 
      $8,311,691            $9,946,556   $1,634,865 

 

See Notes to the Financial Statements.  
 
 
 
 
Semi-Annual Report | April 30, 2019 27

 

 

Clough Global Funds Statements of Assets and Liabilities

 

April 30, 2019 (Unaudited)

 

   Clough Global
Dividend and
Income Fund
  Clough Global
Equity Fund
  Clough Global
Opportunities Fund
ASSETS:         
          
Investments, at value (Cost - see below)*  $121,966,194   $214,644,969   $509,298,563 
Cash   10,227,391    14,826,713    23,417,685 
Deposit with broker for securities sold short   9,705,529    19,372,836    41,950,040 
Deposit with broker for total return swap contracts   1,573,312    1,736,396    3,979,866 
Unrealized appreciation on total return swap contracts   411,659    707,703    1,634,865 
Interest receivable - margin account   12,172    24,597    54,372 
Dividends receivable   44,897    51,259    162,428 
Interest receivable   314,814    10,998    426,460 
Receivable for investments sold   4,263,166    6,843,207    15,820,460 
Other assets   250         
Total Assets   148,519,384    258,218,678    596,744,739 
                
LIABILITIES:               
                
Loan payable   47,000,000    76,500,000    178,000,000 
Interest due on loan payable   128,866    209,750    488,047 
Securities sold short, at value (Proceeds $9,897,605, $19,040,108 and $42,856,751)   10,158,895    19,601,538    44,034,125 
Payable for investments purchased   3,823,744    8,348,683    21,577,609 
Deferred capital gains tax payable   1,946    4,181    10,074 
Payable for total return swap contracts payments   25,046    44,156    100,005 
Accrued investment advisory fee   83,850    184,911    473,065 
Accrued administration fee   35,043    66,651    152,285 
Accrued trustees fee   2,532    2,532    2,532 
Other payables and accrued expenses   21,856    38,930    89,643 
Total Liabilities   61,281,778    105,001,332    244,927,385 
Net Assets  $87,237,606   $153,217,346   $351,817,354 
Cost of Investments  $115,896,596   $199,939,683   $477,178,035 
                
COMPOSITION OF NET ASSETS:               
                
Paid-in capital  $86,466,097   $132,672,340   $339,483,441 
Distributable earnings   771,509    20,545,006    12,333,913 
Net Assets  $87,237,606   $153,217,346   $351,817,354 
Shares of common stock outstanding of no par value, unlimited shares authorized   7,006,437    11,025,691    32,224,412 
Net asset value per share  $12.45   $13.90   $10.92 
                
* Securities Loaned, at value  $43,310,317   $66,276,668   $160,189,838 

 

See Notes to the Financial Statements.

 

28 www.cloughglobal.com

 

 

Clough Global Funds Statements of Operations

 

For the six months ended April 30, 2019 (Unaudited)

 

    Clough Global
Dividend and
Income Fund
    Clough Global Equity Fund    Clough Global Opportunities Fund 
INVESTMENT INCOME:               
                
Dividends (net of foreign withholding taxes of $4,585, $13,778 and $23,173)  $1,684,903   $2,684,005   $4,763,217 
Interest on investment securities   701,005    253,055    1,984,663 
Interest income - margin account   88,605    174,593    392,170 
Hypothecated securities income (See Note 6)   10,659    25,444    53,125 
Total Income   2,485,172    3,137,097    7,193,175 
                
EXPENSES:               
                
Investment advisory fee   513,512    1,107,667    2,858,324 
Administration fee   214,526    399,213    919,959 
Interest on loan   851,193    1,356,150    3,215,217 
Trustees fee   65,623    65,623    65,623 
Dividend expense - short sales   34,230    70,176    158,977 
Other expenses   461    2,617    3,571 
Total Expenses   1,679,545    3,001,446    7,221,671 
Net Investment Income/(Loss)   805,627    135,651    (28,496)
                
NET REALIZED GAIN/(LOSS) ON:               
Investment securities   (838,514)   5,470,493    2,326,634 
Securities sold short   (879,557)   (1,549,966)   (3,509,439)
Total return swap contracts   815,486    1,250,689    2,765,981 
Foreign currency transactions   (74,223)   (128,428)   (297,485)
Capital gains tax   (45,181)   (142,847)   (280,972)
Net realized gain/(loss)   (1,021,989)   4,899,941    1,004,719 
NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION) ON:               
Investment securities   5,156,457    8,596,031    30,413,171 
Securities sold short   (1,055,055)   (1,998,838)   (4,536,004)
Total return swap contracts   (205,658)   (485,680)   (791,496)
Translation of assets and liabilities denominated in foreign currencies   (18)   (1,443)   (3,443)
Deferred capital gains tax   7,002    11,280    28,679 
Net change in unrealized appreciation   3,902,728    6,121,350    25,110,907 
Net realized and unrealized gain   2,880,739    11,021,291    26,115,626 
Net Increase in Net Assets Attributable to Common Shares from Operations  $3,686,366   $11,156,942   $26,087,130 

 

See Notes to the Financial Statements.

 

Semi-Annual Report  |  April 30, 2019 29

 

 

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

 

 

   For the
Six Months Ended
April 30, 2019
(Unaudited)
  For the
Year Ended
October 31, 2018
COMMON SHAREHOLDERS OPERATIONS:          
           
Net investment income/(loss)  $805,627   $1,535,297 
Net realized gain/(loss)   (1,021,989)   9,190,845 
Net change in unrealized appreciation/(depreciation)   3,902,728    (16,817,960)
Net Increase/(Decrease) in Net Assets From Operations   3,686,366    (6,091,818)
           
DISTRIBUTIONS TO COMMON SHAREHOLDERS:          
From distributable earnings   (4,328,577)   (1,202,292)
Tax return of capital       (8,637,547)
Net Decrease in Net Assets from Distributions   (4,328,577)   (9,839,839)
           
CAPITAL SHARE TRANSACTIONS          
Tender offer       (49,421,321)
Net Decrease in Net Assets From Share Transactions       (49,421,321)
           
Net Decrease in Net Assets Attributable to Common Shares   (642,211)   (65,352,978)
           
NET ASSETS ATTRIBUABLE TO COMMON SHARES:          
           
Beginning of year   87,879,817    153,232,795 
End of year  $87,237,606   $87,879,817 

 

See Notes to the Financial Statements.

 

30 www.cloughglobal.com

 

 

Clough Global Equity Fund Statements of Changes in Net Assets

 

 

   For the   
   Six Months Ended  For the
   April 30, 2019  Year Ended
   (Unaudited)  October 31, 2018
COMMON SHAREHOLDERS OPERATIONS:          
           
Net investment income/(loss)  $135,651   $97,465 
Net realized gain/(loss)   4,899,941    37,182,078 
Net change in unrealized appreciation/(depreciation)   6,121,350    (31,874,790)
Net Increase in Net Assets From Operations   11,156,942    5,404,753 
           
DISTRIBUTIONS TO COMMON SHAREHOLDERS:          
From distributable earnings   (7,318,853)   (16,501,049)
Net Decrease in Net Assets from Distributions   (7,318,853)   (16,501,049)
           
CAPITAL SHARE TRANSACTIONS          
Tender offer       (95,394,270)
Net Decrease in Net Assets From Share Transactions       (95,394,270)
           
Net Increase/(Decrease) in Net Assets Attributable to Common Shares   3,838,089    (106,490,566)
           
NET ASSETS ATTRIBUABLE TO COMMON SHARES:          
           
Beginning of year   149,379,257    255,869,823 
End of year  $153,217,346   $149,379,257 

 

See Notes to the Financial Statements.

 

Semi-Annual Report  |  April 30, 2019 31

 

 

Clough Global Opportunities Fund Statements of Changes in Net Assets

 

  

   For the
Six Months Ended
April 30, 2019
(Unaudited)
  For the
Year Ended
October 31, 2018
COMMON SHAREHOLDERS OPERATIONS:          
           
Net investment income/(loss)  $(28,496)  $(191,427)
Net realized gain/(loss)   1,004,719    70,747,909 
Net change in unrealized appreciation/(depreciation)   25,110,907    (80,007,090)
Net Increase/(Decrease) in Net Assets From Operations   26,087,130    (9,450,608)
           
DISTRIBUTIONS TO COMMON SHAREHOLDERS:          
From distributable earnings   (16,853,367)   (24,690,948)
Tax return of capital       (14,426,265)
Net Decrease in Net Assets from Distributions   (16,853,367)   (39,117,213)
           
CAPITAL SHARE TRANSACTIONS          
Tender offer       (232,209,110)
Net Decrease in Net Assets From Share Transactions       (232,209,110)
           
Net Increase/(Decrease) in Net Assets Attributable to Common Shares   9,233,763    (280,776,931)
           
NET ASSETS ATTRIBUABLE TO COMMON SHARES:          
           
Beginning of year   342,583,591    623,360,522 
End of year  $351,817,354   $342,583,591 

 

See Notes to the Financial Statements.

 

32 www.cloughglobal.com

 

 

Clough Global Funds Statements of Cash Flows

 

For the six months ended April 30, 2019 (Unaudited)

 

    Clough Global Dividend and
Income Fund
    

Clough Global

Equity Fund

    Clough Global Opportunities Fund 
CASH FLOWS FROM OPERATING ACTIVITIES:               
Net increase in net assets from operations  $3,686,366   $11,156,942   $26,087,130 
Adjustments to reconcile net increase/(decrease) in net assets from operations to net cash provided by operating activities:               
Purchase of investment securities   (148,923,548)   (293,730,066)   (701,765,099)
Proceeds from disposition of investment securities   160,752,628    289,137,615    760,253,335 
Proceeds from securities sold short transactions   25,587,415    46,546,193    105,310,500 
Cover securities sold short transactions   (26,901,935)   (48,208,685)   (109,991,886)
Purchased options transactions   (207,840)   (353,334)   (810,611)
Net proceeds from/(purchases of) short-term investment securities   1,747,110    22,605,257    (10,927,378)
Net realized (gain)/loss on:               
Investment securities   838,514    (5,470,493)   (2,326,634)
Securities sold short   879,557    1,549,966    3,509,439 
Total return swap contracts   (815,486)   (1,250,689)   (2,765,981)
Capital gains tax   45,181    142,847    280,972 
Net change in unrealized (appreciation)/depreciation on:               
Investment securities   (5,156,457)   (8,596,031)   (30,413,171)
Securities sold short   1,055,055    1,998,838    4,536,004 
Total return swap contracts   205,658    485,680    791,496 
Deferred capital gains tax   (7,002)   (11,280)   (28,679)
Net amortization/(accretion) of premiums/discounts   91,532    (2,052)   194,444 
(Increase)/Decrease in assets:               
Interest receivable - margin account   2,526    4,004    12,233 
Dividends receivable   (10,801)   2,069    (53,342)
Interest receivable   317,599    257,771    1,573,694 
Total return swap contracts payments receivable       251,083    237,208 
Other assets   (250)   649    1,259 
Increase/(Decrease) in liabilities:               
Interest due on loan payable   119,144    194,725    451,457 
Payable for total return swap contracts payments   (393,682)   (644,158)   (1,519,483)
Accrued investment advisory fee   (9,799)   (16,423)   (50,081)
Accrued administration fee   (4,020)   (5,869)   (16,056)
Accrued trustees fee   (1,313)   (1,313)   (1,313)
Other payables and accrued expenses   21,856    38,930    89,643 
Net cash provided by operating activities   12,918,008    16,082,176    42,659,100 
                
CASH FLOWS FROM FINANCING ACTIVITIES:               
Repayment of loan payable   (8,000,000)   (8,500,000)   (29,000,000)
Cash distributions paid   (4,328,577)   (7,318,853)   (16,853,367)
Net cash used in financing activities   (12,328,577)   (15,818,853)   (45,853,367)
                
Effect of exchange rates on cash   18    1,443    3,443 
                
Net Change in Cash, Restricted Cash and Foreign Rates on Cash   589,449    264,766    (3,190,824)
                
Cash and restricted cash, beginning of year  $20,916,783   $35,671,179   $72,538,415 
Cash and restricted cash, end of year  $21,506,232   $35,935,945   $69,347,591 

 

See Notes to the Financial Statements.

 

Semi-Annual Report  |  April 30, 2019 33

 

 

Clough Global Funds Statements of Cash Flows

 

For the six months ended April 30, 2019 (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:  $732,049   $1,161,425   $2,763,760 
                
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF PERIOD TO THE STATEMENT OF ASSETS AND LIABILITIES               
Cash  $7,651,833   $9,867,003   $16,752,798 
Deposit with broker               
Securities sold short   10,404,003    19,622,635    45,044,594 
Total return swaps   2,860,947    6,181,541    10,741,023 
                
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF PERIOD TO THE STATEMENT OF ASSETS AND LIABILITIES               
Cash  $10,227,391   $14,826,713   $23,417,685 
Deposit with broker               
Securities sold short   9,705,529    19,372,836    41,950,040 
Total return swaps   1,573,312    1,736,396    3,979,866 

 

See Notes to the Financial Statements.

 

34 www.cloughglobal.com

 

 

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

 

   

For the

Six Months

Ended

April 30,

2019

(Unaudited)

 

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

 

For the

Period Ended

October 31,

2014(2)

 

For the

Year Ended

March 31,

2014

 

PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value - beginning of period   $12.54  $14.76  $13.79  $15.65  $16.96  $17.51  $17.38 
Income from investment operations:                              
Net investment income/(loss)*    0.11   0.22   0.12   (0.01)  (0.27)  (0.12)  (0.26)
Net realized and unrealized gain/(loss) on investments    0.42   (1.15)  2.14   (0.46)  0.38   0.31   1.90 
Total Income/(Loss) from Investment Operations    0.53   (0.93)  2.26   (0.47)  0.11   0.19   1.64 
                               
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
Net investment income    (0.62)     (0.37)     (0.07)  (0.14)  (0.24)
Net realized gains       (0.17)     (0.59)  (1.34)  (0.60)  (1.27)
Tax return of capital       (1.23)  (0.92)  (0.80)         
Total Distributions to Common Shareholders    (0.62)  (1.40)  (1.29)  (1.39)  (1.41)  (0.74)  (1.51)
                               
CAPITAL SHARE TRANSACTIONS:
Accretive/(Dilutive) impact of capital share transactions*       0.11   (0.00)(3)     (0.01)      
Total Capital Share Transactions       0.11   (0.00)(3)     (0.01)      
Net asset value - end of period   $12.45  $12.54  $14.76  $13.79  $15.65  $16.96  $17.51 
Market price - end of period   $11.10  $11.28  $14.16  $11.62  $13.60  $14.60  $15.18 
                               
Total Investment Return - Net Asset Value:(4)    4.95%  (5.18)%  17.89%  (1.14)%  1.61%  1.68%  11.14%
Total Investment Return - Market Price:(4)    4.02%  (11.10)%  34.22%  (4.14)%  2.57%  0.97%  11.12%
                               
RATIOS AND SUPPLEMENTAL DATA:
Net assets attributable to common shares, end of period (000s)   $87,238  $87,880  $153,233  $143,319  $162,651  $176,968  $182,737 
Ratios to average net assets attributable to common shareholders:                              
Total expenses    3.93%(5)  3.48%  2.94%  3.65%  3.95%  3.25%(5)  3.34%
Total expenses excluding interest expense and dividends on short sales expense    1.86%(5)  1.84%  1.99%  2.09%  2.17%  2.00%(5)  1.94%
Net investment income/(loss)    1.88%(5)  1.55%  0.87%  (0.08)%  (1.58)%  (1.15)%(5)  (1.47)%
Portfolio turnover rate(6)    126%  109%  149%  205%  172%  110%  179%
                               
Borrowings at End of Period
Aggregate Amount Outstanding (000s)   $47,000  $55,000  $72,000  $72,000  $93,300  $93,300  $93,300 
Asset Coverage Per $1,000 (000s)   $2,856  $2,598  $3,128  $2,991  $2,743  $2,897  $2,959 

 

* 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) The Board announced, on September 12, 2014, approval to change the fiscal year-end of the Fund from March 31 to October 31.
(3) Less than $0.005.
(4)

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. 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. 

(5) Annualized.
(6) 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, 2019 35

 

 

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

 

  

For the

Six Months Ended

April 30,

2019

(Unaudited)

 

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

 

For the

Period Ended

October 31,

2014(1)

 

For the

Year Ended

March 31,

2014

 
PER COMMON SHARE OPERATING PERFORMANCE:         
Net asset value - beginning of period  $13.55  $14.50  $12.70  $15.10  $16.47  $17.15  $16.63 
Income from investment operations:                             
Net investment income/(loss)*   0.01   0.01   (0.02)  (0.23)  (0.45)  (0.17)  (0.33)
Net realized and unrealized gain/(loss) on investments   1.00   0.41   3.06   (0.84)  0.46   0.23   2.33 
Total Income/(Loss) from Investment Operations   1.01   0.42   3.04   (1.07)  0.01   0.06   2.00 
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:  
Net investment income   (0.66)     (0.13)     (0.04)  (0.08)  (0.38)
Net realized gains      (1.50)     (0.90)  (1.32)  (0.66)  (1.10)
Tax return of capital         (1.11)  (0.43)         
Total Distributions to Common Shareholders   (0.66)  (1.50)  (1.24)  (1.33)  (1.36)  (0.74)  (1.48)
CAPITAL SHARE TRANSACTIONS:  
Accretive/(Dilutive) impact of capital share transactions*      0.13   (0.00)(2)     (0.02)      
Total Capital Share Transactions      0.13   (0.00)(2)     (0.02)      
Net asset value - end of period  $13.90  $13.55  $14.50  $12.70  $15.10  $16.47  $17.15 
Market price - end of period  $13.26  $13.21  $13.66  $10.69  $12.92  $14.34  $15.42 
                              
Total Investment Return - Net Asset Value:(3)   8.10%  3.99%  25.99%  (5.36)%(4)  0.76%  0.86%  13.57%
Total Investment Return - Market Price:(3)   5.78%  7.62%  41.01%  (6.90)%  (0.98)%  (2.33)%  15.52%
RATIOS AND SUPPLEMENTAL DATA:  
Net assets attributable to common shares, end of period (000s)  $153,217  $149,379  $255,870  $224,187  $266,576  $293,829  $305,958 
Ratios to average net assets attributable to common shareholders:                             
Total expenses   4.15%(5)  3.63%  3.14%  4.21%  4.56%  3.68%(5)  3.76%
Total expenses excluding interest expense and dividends on short sales expense   2.18%(5)  2.13%  2.21%  2.59%  2.77%  2.42%(5)  2.36%
Net investment income/(loss)   0.19%(5)  0.06%  (0.14)%  (1.70)%  (2.73)%  (1.68)%(5)  (1.95)%
Portfolio turnover rate(6)   153%  115%  141%  182%  154%  102%  166%
Borrowings at End of Period  
Aggregate Amount Outstanding (000s)  $76,500  $85,000  $113,000  $113,000  $156,000  $156,000  $156,000 
Asset Coverage Per $1,000 (000s)  $3,003  $2,757  $3,264  $2,984  $2,709  $2,884  $2,961 

 

*Based on average shares outstanding.
(1)The Board announced, on September 12, 2014, approval to change the fiscal year-end of the Fund from March 31 to October 31.
(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. 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.
(4)In 2016, 0.07% of the Funds'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)%.
(5)Annualized.
(6)Portfolio turnover rate for periods less than one full year have not been annualized.

 

See Notes to the Financial Statements.
 
 
 
36 www.cloughglobal.com

 

 

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

 

   For the
Six Months
Ended
April 30,
2019
(Unaudited)
  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
 

For the

Period

Ended

October 31,

2014(1)

  For the
Year Ended
March 31,
2014
 
PER COMMON SHARE OPERATING PERFORMANCE:
Net asset value - beginning of period  $10.63  $12.09  $11.07  $12.92  $14.11  $14.67  $14.64 
Income from investment operations:                             
Net investment loss*   (0.00)(2)  (0.01)  (0.02)  (0.15)  (0.35)  (0.15)  (0.32)
Net realized and unrealized gain/(loss) on investments   0.81   (0.35)  2.11   (0.54)  0.36   0.26   1.72 
Total Income/(Loss) from Investment Operations   0.81   (0.36)  2.09   (0.69)  0.01   0.11   1.40 
                              
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:  
Net investment income   (0.52)     (0.14)           (0.11)
Net realized gains      (0.76)     (0.18)  (1.19)  (0.67)  (1.26)
Tax return of capital      (0.45)  (0.93)  (0.98)         
Total Distributions to Common Shareholders   (0.52)  (1.21)  (1.07