Clough Global Closed-End Funds Approve Participation Agreement Permitting Increased Share Purchases by RiverNorth Funds
May 11 2015 - 4:00PM
Business Wire
The Boards of Trustees (each, a “Board” and collectively, the
“Boards”) of the below-listed closed-end funds (each, a “Fund” and
collectively, the “Funds”) advised by Clough Capital Partners L.P.
(the “Advisor”), announced today that they have approved a
participation agreement between the Funds and the RiverNorth Funds,
on behalf of its series. Pursuant to the participation agreement,
the RiverNorth Funds may purchase shares of each Fund in excess of
certain investment limitations set forth by the Investment Company
Act of 1940, provided certain requirements are fulfilled. Each
Board approved the participation agreement on behalf of its Fund as
part of the Board’s evaluation of options intended to enhance
shareholder value and to provide liquidity.
The Funds are as follows:
Clough Global Equity Fund (NYSE MKT:
GLQ)Clough Global Opportunities Fund (NYSE MKT: GLO)Clough Global
Allocation Fund (NYSE MKT: GLV)
The Boards and the Advisor regularly analyze options intended to
enhance shareholder value and to address the discount between the
market price of a Fund’s common shares and their net asset value
per share (“NAV”), as well as to provide liquidity to shareholders
seeking to sell their shares of the Funds on the secondary market.
The Boards and the Advisor believe that the participation agreement
may further these goals because it allows series of the RiverNorth
Funds to purchase shares of the Funds without the possibility of
the RiverNorth Funds becoming a controlling shareholder, which has
the potential to reduce the Funds’ discounts to NAV and thereby
benefit remaining shareholders while potentially providing
additional liquidity in the trading of Fund shares. The
participation agreement is the most recent in a series of actions
the Funds have taken to seek to enhance shareholder value,
including implementing a share repurchase program, multiple
increases of the level distribution in the past 18 months and
increasing the frequency of those distributions from quarterly to
monthly. The Boards will continue to consider strategic options to
enhance shareholder value in the long-term.
The Clough Global Equity Fund
The Fund is a closed-end fund utilizing the Advisor’s
research-driven, thematic process, with an investment objective of
providing a high level of total return. Having a global, flexible
mandate and utilizing the Advisor’s global research capabilities,
with offices in Boston and Hong Kong, the Fund will invest at least
80% in equity and equity-related securities in both U.S. and
non-U.S. markets, and the remainder in fixed income securities,
including corporate and sovereign debt, in both U.S. and non-U.S.
markets. More information on the Clough Global Equity Fund,
including the Fund’s dividend reinvestment plan, can be found at
www.cloughglobal.com or call 877-256-8445.
The Clough Global Opportunities Fund
The Fund is a closed-end fund with an investment objective of
providing a high level of total return. The Fund seeks to achieve
this objective by applying a fundamental research-driven investment
process and will invest in equity and equity-related securities as
well as fixed income securities, including both corporate and
sovereign debt. Utilizing the Advisor’s global research
capabilities, with offices in Boston and Hong Kong, the Clough
Global Opportunities Fund will invest in both U.S. and non-U.S.
markets. More information on the Clough Global Opportunities Fund,
including the Fund’s dividend reinvestment plan, can be found at
www.cloughglobal.com or call 877-256-8445.
The Clough Global Allocation Fund
The Fund is a closed-end fund searching globally for the most
opportunistic investments in the capital markets, with an
investment objective of providing a high level of total return.
Utilizing the Advisor’s global research capabilities, with offices
in Boston and Hong Kong, the Clough Global Allocation Fund seeks to
pursue this objective by applying a fundamental research-driven
investment process and will invest in equity and equity-related
securities as well as fixed income securities, including both
corporate and sovereign debt, in both U.S. and non-U.S. markets.
More information on the Clough Global Allocation Fund, including
the Fund’s dividend reinvestment plan, can be found at
www.cloughglobal.com or call 877-256-8445.
Clough Capital Partners L.P.
The Advisor is a Boston-based investment advisory firm which
manages approximately $4.4 billion in assets (as of April 30,
2015): $1.8 billion in hedge fund and institutional accounts; $117
million in an open-end mutual fund; and $2.5 billion in three
closed-end funds – Clough Global Allocation (GLV), Clough Global
Equity (GLQ), and the Clough Global Opportunities Fund (GLO). The
firm uses a global and theme-based approach and invests in
securities on a global basis. Clough was founded in 2000 by Chuck
Clough and partners James Canty and Eric Brock.
Certain statements made in this press release are
forward-looking statements. Actual future results or occurrences
may differ significantly from those anticipated in any
forward-looking statements due to numerous factors. These include
but are not limited to: market developments; legal and regulatory
developments; and other additional risks and uncertainties. As a
result, neither a Fund nor any other person assumes responsibility
for the accuracy and completeness of such statements in the
future.
__
An investor should consider investment objectives, risks,
charges and expenses carefully before investing. To obtain a
prospectus, annual report or semi-annual report, which contains
this and other information, visit www.cloughglobal.com or call
877-256-8445. Read the prospectus carefully before investing.
Each Fund is a closed-end fund and closed-end funds do not
continuously issue shares for sale as open-end mutual funds do.
Since the initial public offering, each Fund now trades in the
secondary market. Investors wishing to buy or sell shares need to
place orders through an intermediary or broker. The share price of
a closed-end fund is based on the market’s value. Shares of
closed-end funds often trade at a discount to NAV. An investment in
a Fund may not be appropriate for all investors.
ALPSTom Carter, +1 303-623 2577tom.carter@alpsinc.comorFund
Services Group, 877-256-8445
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