UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number: 811-21583

 

Clough Global Dividend and Income Fund
(exact name of Registrant as specified in charter)

 

1290 Broadway, Suite 1000, Denver, Colorado 80203
(Address of principal executive offices) (Zip code)

 

Sareena Khwaja-Dixon, Secretary
Clough Global Dividend and Income Fund
1290 Broadway, Suite 1000
Denver, Colorado 80203
(Name and address of agent for service)

 

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

 

Date of fiscal year end:   October 31

 

Date of reporting period: November 1, 2021 – April 30, 2022

 

 

Item 1. Reports to Stockholders.

 

(a)

 

 

 

Section 19(b) Disclosure

April 30, 2022 (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, the Funds’ managed distribution policy sets the monthly distribution rate at an amount equal to one twelfth of 10% of each Fund’s adjusted year-ending NAV, which is the average of the NAVs as of the last five business days of the prior calendar year.

 

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.

 

Each Board may amend, suspend or terminate each Fund’s Plan without prior notice. 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 7
Clough Global Opportunities Fund 12
Statement of Investments  
Clough Global Dividend and Income Fund 17
Clough Global Equity Fund 22
Clough Global Opportunities Fund 26
Statements of Assets and Liabilities 30
Statements of Operations 31
Statements of Changes in Net Assets 32
Statements of Cash Flows 35
Financial Highlights  
Clough Global Dividend and Income Fund 38
Clough Global Equity Fund 42
Clough Global Opportunities Fund 46
Notes to Financial Statements 49
Dividend Reinvestment Plan 67
Additional Information  
Fund Proxy Voting Policies & Procedures 68
Portfolio Holdings 68
Notice 68
Section 19(A) Notices 68
Investment Advisory Agreement Approval 69

 

 

Clough Global Dividend and Income Fund Shareholder Letter
 

April 30, 2022 (Unaudited)

 

To Our Investors,

 

For the semi-annual period ending April 30, 2022, the Clough Global Dividend and Income Fund (“GLV” or the “Fund”) had a total net return of -15.80% on net asset value (“NAV”) and -21.76% on market price, compared to -10.19% for the 50% MSCI World/50% Bloomberg U.S. Aggregate Bond Index and -11.65% for the Morningstar Global Allocation Index for the same period.

 

Top 5 Contributors and Detractors for the Fund’s First Fiscal Half of the Year

 

The two top contributors to performance for the first six months of the fiscal year were short positions in Rivian Automotive Inc., a fledgling produce of electric vehicle (“EV”) trucks, and Zscaler Inc., a security software company, whose lofty company valuations proved to be unsustainable as interest rates moved higher. Raytheon Technologies Corp., a leading aerospace and defense company, also contributed to performance (see comments below on aerospace and defense sector). Two healthcare companies, Eli Lilly & Co. and Pfizer Inc., round out the top five contributors. Eli Lilly gained on positive earnings momentum while Pfizer rallied as its estimated $36 billion in COVID vaccine revenues in 2021 exceeded Wall Street expectations.

 

Two of the weakest holdings to start the year were BYD Co Ltd. and Contemporary Amperex Technology Co Ltd. Both are leading battery makers for electric vehicles in China that struggled as continued COVID-related shutdowns in China lead to a decline in sales and production. Micron Technology Inc., the only U.S.-based producer of semiconductor memory, also declined in line with the technology sector during the first half of the year. The Fund has since exited these three positions. Finally, Microsoft Corp. and Redwood Trust Inc., a leading mortgage provider to prime jumbo borrowers, rounded out the bottom five. The Fund continues to hold these two positions.

 

New Themes Added in the Fund’s First Fiscal Half of the Year

 

DEFENSE AEROSPACE

 

During the period we added new positions in Northrop Grumman Corp. and Lockheed Martin Corp to the position in Raytheon Technologies Corp. we already held in the Fund. Defense stocks have been underperforming for years, reflecting a long period of underinvestment in our armed forces which began around the time of the fall of the former Soviet Union. One indication of our declining military proficiency is the number of hours per week flown by U.S. fighter pilots, which have fallen from the 60-70 norm to 10 hours per week according to a Wall Street Journal report. Few new aircraft have been developed over the past few decades. Only the F-35 fighter aircraft and an undetermined number of B-21 bombers are entering western fleets in large numbers. So, a defense investment cycle was perhaps inevitable, but Russia’s invasion of Ukraine likely brought it forward. Shortages of military platforms such as submarines, naval vessels, aircraft and land vehicles has become extreme at a time of growing geopolitical threats which can no longer be ignored. Demand comes not only from the need to supply U.S. forces, but those of Europe and Asian nations like Japan and Korea, as well.

 

Defense stocks tend to carry a premium multiple to the S&P 500 Index because they are backlogged businesses making operating results easier to predict, and they also typically have strong balance sheets and high cashflows. Free cash flow yields average 7-9% annually. We anticipate a move down to 5% or so as new programs are authorized.

 

Raytheon Technologies currently remains our largest holding in the sector. The company has a leading position in both commercial and military aerospace and space technologies. Its subsidiaries hold dominant and highly profitable positions in flight control systems (Collins Aerospace) and aircraft engines (Pratt and Whitney, whose engines hold the largest percentages on the A-320 neo). The company also sports a defense systems business with leading technologies in hyper sonics, as well as cyber missile defense systems. We also expect further synergies will continue to arise from the company’s 2020 merger with United Technologies.

 

ENERGY

 

Years of underinvestment in fossil fuel energy has caused global oil supplies to fall short of demand. That has taken inventories from the highest to the lowest level in over 30 years, according to Alpine Macro Research. So, the reality of actual shortages is only now becoming apparent. There have been little institutional capital flows into energy and despite the recent rally the sector only accounts for 4.2% of S&P 500 Index market capitalization. Since January 2020, domestic crude prices have increased by 50% while Henry Hub natural gas prices have tripled. Our focus is in the energy services and LNG sectors.

 

What is new in the present experience is the absence of any buffer of spare capacity in the energy system. During the energy crises of 1973 and 1979, the Organization of the Petroleum Exporting Countries (“OPEC”) maintained several million barrels per day of spare oil pumping capacity. That buffer fell to 2 million barrels a day in 2008, even as oil hit $145 per barrel. Now, that excess capacity is gone. For the past 15 years, nearly 90% of total non-OPEC oil production growth has come from U.S. shale operations. But that supply seems to be peaking and early signs of resource exhaustion are noticeable. The best drilling prospects have already been drilled and many fields are now declining. Since late 2019 production in the U.S. has declined by 1.5 million barrels a day. There is no other source of non-OPEC oil production available. Iran and Iraq may have a modest amount of excess capacity, but they have been producing close to as much as they can. Russia’s invasion of Ukraine simply brought these issues forward.

 

 
2 www.cloughglobal.com

 

 

Clough Global Dividend and Income Fund Shareholder Letter
 

April 30, 2022 (Unaudited)

 

It appears to us that a new cycle of energy exploration will be required and since the oil service and equipment industry has been consolidating for two decades pricing and profitability in this new cycle should be very strong.

 

The natural gas investment cycle could be even stronger. Global demand is strong, and a cold European 2020-2021 winter drove European inventories to dangerously low levels. Ample shale gas in the U.S. has already led to a U.S. liquid natural gas export boom and so far, this has occurred while leaving the U.S. market well supplied. But that could change since the best wells have been drilled and the two earliest gas shale basins (Barnett and Fayetteville) have rolled over and are now running 60% below their peak production levels. The Fund currently holds a position in Cheniere Energy, Inc. the largest LNG producer and transportation company.

 

FIXED INCOME

 

The Fund is currently conservatively positioned due to the extreme volatility in the markets. Rather than hold a significant amount in cash sweep vehicles that pay very little in interest, the Fund has invested in two to three-year investment grade corporate bonds that yield between three and four percent. We view this as an attractive return for taking very little interest rate risk while waiting out very choppy markets.

 

The year so far has been a challenge, but we believe that over the summer inflationary pressures may reverse, perhaps sharply, and the markets’ perception of central bank policies will shift towards a more bullish liquidity stance. However, there is no upside to trying to anticipate when that may occur so we will sustain a conservative stance until the backdrop has unquestionably turned more bullish.

 

As always, please don’t hesitate to reach out to us with any questions or comments.

 

Sincerely,

 

 

Charles I Clough, Jr.

 

 

Robert M. Zdunczyk

 

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.

 

Although not generally stated throughout, the information in this letter reflects the opinions of the individual portfolio managers, which opinion is subject to change, and is not intended to be a forecast of future events, a guarantee of future results or investment advice.

 

The Morningstar Global Allocation Index represents a multi-asset class portfolio of 60% global equities and 40% global bonds. The asset allocation within each class is driven by Morningstar asset allocation methodology. To maintain broad global exposure and diversification, the index consists of equities & fixed income and utilizes global, float-weighted index methodology to determine allocation to U.S. and non-U.S.

 

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

 

 
Semi-Annual Report | April 30, 2022 3

 

 

Clough Global Dividend and Income Fund Shareholder Letter
 

April 30, 2022 (Unaudited)

 

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

 

The blended indices, 50% MSCI World/50% Bloomberg U.S. Aggregate Bond Index and 75% MSCI World/25% Bloomberg U.S. Aggregate Bond Index, have been calculated by Clough Capital Partners L.P. based on the sources listed above.

 

The performance of the indices referenced herein is used for informational purposes only. One cannot invest directly in an index. Indices are not subject to any of the fees or expenses to which the Fund is subject, and there are significant differences between the Fund’s investments and the components of the indices referenced.

 

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.

 

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 1-855-425-6844. Read them carefully before investing.

 

The 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 the 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. For the fiscal year 2021, the Fund's distribution policy resulted in distributions of capital in the amount of $3,855,628.

 

The 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.

 

The 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 the Fund in real estate investment trusts (“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 the 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 neither a guarantee, nor necessarily indicative, of future results, which may be significantly affected by changes in economic and other conditions.

 

 
4 www.cloughglobal.com

 

 

Clough Global Dividend and Income Fund Portfolio Allocation
 

April 30, 2022 (Unaudited)

 

Top 10 Equity Holdings(a)(d) % of Total Portfolio
1. Visa, Inc. 6.70%
2. Raytheon Technologies Corp. 6.66%
3. Microsoft Corp. 4.36%
4. Apple, Inc. 3.94%
5. Starwood Property Trust, Inc. 3.40%
6. Eli Lilly & Co. 2.62%
7. TransDigm Group, Inc. 2.25%
8. First American Financial Corp. 2.21%
9. Exxon Mobil Corp. 2.19%
10. Kinder Morgan, Inc. 2.10%

 

Global Securities Holdings(a) % of Total Portfolio
United States 82.15%
U.S. Multinationals(b) 17.87%
France 1.35%
Canada 0.71%
Netherlands 0.65%
Hong Kong 0.16%
Other -2.89%
TOTAL INVESTMENTS 100.00%
Asset Allocation(a) % of Total Portfolio
Common Stock - US 24.02%
Common Stock - Foreign 19.39%
Exchange Traded Funds -3.26%
Total Equities 40.15%
   
Government L/T 36.00%
Corporate Debt 20.73%
Preferred Stock 0.80%
Asset-Backed Securities 0.03%
Total Fixed Income 57.56%
   
Short-Term Investments 3.49%
Purchased & Written Options 0.19%
Other (Cash) -1.39%
   
TOTAL INVESTMENTS 100.00%

 

Country Allocation(c) Long
Exposure
%NAV
Short
Exposure
%NAV
Gross
Exposure
%NAV
Net
Exposure
%NAV
United States 117.3% -8.8% 126.1% 108.5%
U.S. Multinationals(b) 34.5% -10.9% 45.4% 23.6%
France 1.8% 0.0% 1.8% 1.8%
Canada 0.9% 0.0% 0.9% 0.9%
Netherlands 0.9% 0.0% 0.9% 0.9%
Hong Kong 0.2% 0.0% 0.2% 0.2%
Other 0.0% -3.8% 3.8% -3.8%
TOTAL INVESTMENTS 155.6% -23.5% 179.1% 132.1%

 

(a) Percentages calculated based on total portfolio, including securities sold short, cash balances, market value of futures, and notional value of return swaps.
(b) U.S. Multinationals includes companies organized or located in the United States that have more than 50% of revenues derived outside of the United States.
(c) Percentages calculated based on the net asset value of the Fund.
(d) Only long equity and equity-related positions are listed.

 

 
Semi-Annual Report | April 30, 2022 5

 

 

Clough Global Dividend and Income Fund Portfolio Allocation
 

April 30, 2022 (Unaudited)

 

Total Return as of April 30, 2022(a)

  1 Year 3 Year 5 Year Since Inception(b)
Clough Global Dividend and Income Fund - NAV(c) -14.67% 1.66% 2.42% 5.73%
Clough Global Dividend and Income Fund - Market Price(d) -18.83% 3.98% 2.30% 5.18%
Morningstar Global Allocation Index -8.37% 5.46% 6.07% 6.70%
50% Bloomberg Barclays US Aggregate/ 50% MSCI World GR -5.67% 5.95% 6.19% 6.27%

 

(a) Total returns assume reinvestment of all distributions.
(b) The Fund commenced operation on July 28, 2004.
(c) Performance returns are net of management fees and other Fund expenses.
(d) Market price is the value at which the Fund trades on an exchange. This market price can be more or less than its NAV.

 

Distribution to Common Stockholders

 

The Fund intends to make monthly distributions to common shareholders according to its managed distribution policy. The Fund’s managed distribution policy is to set the monthly distribution rate at an amount equal to one twelfth of 10% of the Fund’s adjusted year-ending net asset value per share (“NAV”), which will be the average of the NAVs as of the last five business days of the prior calendar year. The Board of Directors approve the distribution and may adjust it from time to time. The monthly distribution amount paid from October 1, 2021 to December 31, 2021 was $0.0967 per share and the Fund paid $0.0906 per share monthly between January 1, 2022 and April 30, 2022. At times, to maintain a stable level of distributions, the Fund may pay out less than all of its net investment income or pay out accumulated undistributed income, or return of capital, in addition to current net investment income.

 

Performance of $10,000 Initial Investment (as of April 30, 2022)

 

 

The graph shown above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception. Past performance does not guarantee future results. All returns reflect reinvested dividends, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 
6 www.cloughglobal.com

 

 

Clough Global Equity Fund Shareholder Letter
 

April 30, 2022 (Unaudited)

 

To Our Investors,

 

For the semi-annual period ending April 30, 2022, the Clough Global Equity Fund (“GLQ” or the “Fund”) had a total net return of -28.08% on net asset value (“NAV”) and -28.41% on market price, compared to -11.09% for the MSCI World Index for the same period.

 

Top 5 Contributors and Detractors for the Fund’s First Fiscal Half of the Year

 

The top contributor to performance for the first six months of the fiscal year was a long position in iRhythm Technologies Inc., a medical device company focused on cardiac monitoring, that gained on positive reimbursement news. Checkmate Pharmaceuticals Inc., a clinical stage immunotherapy company, that announced it will be acquired by Regeneron Pharmaceuticals Inc. in a $250 million all cash deal. Two short positions in Rivian Automotive Inc., a fledgling produce of electric vehicle (“EV”) trucks, as well as Zscaler Inc., a security software company, contributed to performance, as interest rates moved higher and the lofty company valuations proved to be unsustainable. Finally, Vertex Pharmaceuticals Inc., a biotechnology company focused on cystic fibrosis, rallied as their earnings exceeded Wall Street expectations.

 

Two of the weakest holdings to start the year were BYD Co Ltd. and Contemporary Amperex Technology Co Ltd. Both are leading battery makers for electric vehicles in China that struggled as continued COVID-related shutdowns in China lead to a decline in sales and production. Amazon.com Inc. suffered sharp declines as concerns regarding investment in its retail operations trumped its strong results in Amazon Web Services. Micron Technology Inc., the only U.S.-based producer of semiconductor memory, also declined in line with the technology sector during the first half of the year. Finally, C4 Therapeutics Inc., a biotechnology company, rounded out the bottom five.

 

New Themes Added in the Fund’s First Fiscal Half of the Year

 

DEFENSE AEROSPACE

 

During the period we added new positions in Northrop Grumman Corp. and Lockheed Martin Corp to the position in Raytheon Technologies Corp. we already held in the Fund. Defense stocks have been underperforming for years, reflecting a long period of underinvestment in our armed forces which began around the time of the fall of the former Soviet Union. One indication of our declining military proficiency is the number of hours per week flown by U.S. fighter pilots, which have fallen from the 60-70 norm to 10 hours per week according to a Wall Street Journal report. Few new aircraft have been developed over the past few decades. Only the F-35 fighter aircraft and an undetermined number of B-21 bombers are entering western fleets in large numbers. So, a defense investment cycle was perhaps inevitable, but Russia’s invasion of Ukraine likely brought it forward. Shortages of military platforms such as submarines, naval vessels, aircraft and land vehicles has become extreme at a time of growing geopolitical threats which can no longer be ignored. Demand comes not only from the need to supply U.S. forces, but those of Europe and Asian nations like Japan and Korea, as well.

 

Defense stocks tend to carry a premium multiple to the S&P 500 Index because they are backlogged businesses making operating results easier to predict, and they also typically have strong balance sheets and high cashflows. Free cash flow yields average 7-9% annually. We anticipate a move down to 5% or so as new programs are authorized.

 

Raytheon Technologies currently remains our largest holding in the sector. The company has a leading position in both commercial and military aerospace and space technologies. Its subsidiaries hold dominant and highly profitable positions in flight control systems (Collins Aerospace) and aircraft engines (Pratt and Whitney, whose engines hold the largest percentages on the A-320 neo). The company also sports a defense systems business with leading technologies in hyper sonics, as well as cyber missile defense systems. We also expect further synergies will continue to arise from the company’s 2020 merger with United Technologies.

 

ENERGY

 

Years of underinvestment in fossil fuel energy has caused global oil supplies to fall short of demand. That has taken inventories from the highest to the lowest level in over 30 years, according to Alpine Macro Research. So, the reality of actual shortages is only now becoming apparent. There have been little institutional capital flows into energy and despite the recent rally the sector only accounts for 4.2% of S&P 500 Index market capitalization. Since January 2020, domestic crude prices have increased by 50% while Henry Hub natural gas prices have tripled. Our focus is in the energy services and LNG sectors.

 

What is new in the present experience is the absence of any buffer of spare capacity in the energy system. During the energy crises of 1973 and 1979, the Organization of the Petroleum Exporting Countries (“OPEC”) maintained several million barrels per day of spare oil pumping capacity. That buffer fell to 2 million barrels a day in 2008, even as oil hit $145 per barrel. Now, that excess capacity is gone. For the past 15 years, nearly 90% of total non-OPEC oil production growth has come from U.S. shale operations. But that supply seems to be peaking and early signs of resource exhaustion are noticeable. The best drilling prospects have already been drilled and many fields are now declining. Since late 2019 production in the U.S. has declined by 1.5 million barrels a day. There is no other source of non-OPEC oil production available. Iran and Iraq may have a modest amount of excess capacity, but they have been producing close to as much as they can. Russia’s invasion of Ukraine simply brought these issues forward.

 

 
Semi-Annual Report | April 30, 2022 7

 

 

Clough Global Equity Fund Shareholder Letter
 

April 30, 2022 (Unaudited)

 

It appears to us that a new cycle of energy exploration will be required and since the oil service and equipment industry has been consolidating for two decades pricing and profitability in this new cycle should be very strong.

 

The natural gas investment cycle could be even stronger. Global demand is strong, and a cold European 2020-2021 winter drove European inventories to dangerously low levels. Ample shale gas in the U.S. has already led to a U.S. liquid natural gas export boom and so far, this has occurred while leaving the U.S. market well supplied. But that could change since the best wells have been drilled and the two earliest gas shale basins (Barnett and Fayetteville) have rolled over and are now running 60% below their peak production levels. The Fund currently holds a position in Cheniere Energy, Inc. the largest LNG producer and transportation company.

 

The year so far has been a challenge, but we believe that over the summer inflationary pressures may reverse, perhaps sharply, and the markets’ perception of central bank policies will shift towards a more bullish liquidity stance. However, there is no upside to trying to anticipate when that may occur so we will sustain a conservative stance until the backdrop has unquestionably turned more bullish.

 

As always, please don’t hesitate to reach out to us with any questions or comments.

 

Sincerely,

 

 

Charles I Clough, Jr.

 

 

Robert M. Zdunczyk

 

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 Equity Fund 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.

 

Although not generally stated throughout, the information in this letter reflects the opinions of the individual portfolio managers, which opinion is subject to change, and is not intended to be a forecast of future events, a guarantee of future results or investment advice.

 

The Morningstar Global Allocation Index represents a multi-asset class portfolio of 60% global equities and 40% global bonds. The asset allocation within each class is driven by Morningstar asset allocation methodology. To maintain broad global exposure and diversification, the index consists of equities & fixed income and utilizes global, float-weighted index methodology to determine allocation to U.S. and non-U.S.

 

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

 

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

 

 
8 www.cloughglobal.com

 

 

Clough Global Equity Fund Shareholder Letter
 

April 30, 2022 (Unaudited)

 

The blended indices, 50% MSCI World/50% Bloomberg U.S. Aggregate Bond Index and 75% MSCI World/25% Bloomberg U.S. Aggregate Bond Index, have been calculated by Clough Capital Partners L.P. based on the sources listed above.

 

The performance of the indices referenced herein is used for informational purposes only. One cannot invest directly in an index. Indices are not subject to any of the fees or expenses to which the Fund is subject, and there are significant differences between the Fund’s investments and the components of the indices referenced.

 

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.

 

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 1-855-425-6844. Read them carefully before investing.

 

The 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 the 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. For the fiscal year 2021, the Fund's distribution policy resulted in distributions of capital in the amount of $23,035,803.

 

The 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.

 

The 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 the Fund in real estate investment trusts (“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 the 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 neither a guarantee, nor necessarily indicative, of future results, which may be significantly affected by changes in economic and other conditions.

 

 
Semi-Annual Report | April 30, 2022 9

 

 

Clough Global Equity Fund Portfolio Allocation
 

April 30, 2022 (Unaudited)

 

Top 10 Equity Holdings(a)(d) % of Total Portfolio
1. Microsoft Corp. 4.69%
2. Apple, Inc. 4.13%
3. Raytheon Technologies Corp. 3.63%
4. Starwood Property Trust, Inc. 3.54%
5. Visa, Inc. 2.54%
6. Exxon Mobil Corp. 2.29%
7. Booking Holdings, Inc. 2.24%
8. Kinder Morgan, Inc. 2.19%
9. The Boeing Co. 2.10%
10. Royal Caribbean Cruises Ltd. 2.09%

 

Global Securities Holdings(a) % of Total Portfolio
United States 80.64%
U.S. Multinationals(b) 19.70%
France 1.71%
Switzerland 0.98%
Other -3.03%
TOTAL INVESTMENTS 100.00%
Asset Allocation(a) % of Total Portfolio
Common Stock - US 37.94%
Common Stock - Foreign 22.54%
Exchange Traded Funds -3.39%
Total Equities 57.11%
   
Government L/T 28.62%
Corporate Debt 0.04%
Total Fixed Income 28.66%
   
Short-Term Investments 12.17%
Other (Cash) 0.97%
Warrant 0.91%
Purchased & Written Options 0.20%
   
TOTAL INVESTMENTS 100.00%

 

Country Allocation(c) Long
Exposure
%NAV
Short
Exposure
%NAV
Gross
Exposure
%NAV
Net
Exposure
%NAV
United States 121.8% -8.8% 130.6% 113.0%
U.S. Multinationals(b) 39.9% -12.4% 52.3% 27.5%
France 2.4% 0.0% 2.4% 2.4%
Switzerland 1.4% 0.0% 1.4% 1.4%
Other 0.0% -4.2% 4.2% -4.2%
TOTAL INVESTMENTS 165.5% -25.4% 190.9% 140.1%

 

(a) Percentages calculated based on total portfolio, including securities sold short, cash balances, market value of futures, and notional value of return swaps.
(b) U.S. Multinationals includes companies organized or located in the United States that have more than 50% of revenues derived outside of the United States.
(c) Percentages calculated based on the net asset value of the Fund.
(d) Only long equity and equity-related positions are listed.

 

 
10 www.cloughglobal.com

 

 

Clough Global Equity Fund Portfolio Allocation

 

April 30, 2022 (Unaudited)

 

Total Return as of April 30, 2022(a)

  1 Year 3 Year 5 Year Since Inception(b)
Clough Global Equity Fund - NAV(c) -28.76% 3.42% 6.68% 6.61%
Clough Global Equity Fund - Market Price(d) -24.50% 4.71% 7.83% 6.27%
MSCI World Index - GR -3.10% 10.95% 10.74% 8.17%

 

(a) Total returns assume reinvestment of all distributions.
(b) The Fund commenced operation on April 27, 2005.
(c) Performance returns are net of management fees and other Fund expenses.
(d) Market price is the value at which the Fund trades on an exchange. This market price can be more or less than its NAV.

 

Distribution to Common Stockholders

 

The Fund intends to make monthly distributions to common shareholders according to its managed distribution policy. The Fund’s managed distribution policy is to set the monthly distribution rate at an amount equal to one twelfth of 10% of the Fund’s adjusted year-ending net asset value per share (“NAV”), which will be the average of the NAVs as of the last five business days of the prior calendar year. The Board of Directors approve the distribution and may adjust it from time to time. The monthly distribution amount paid from October 1, 2021 to December 31, 2021 was $0.1341 per share and the Fund paid $0.1162 per share monthly between January 1, 2022 and April 30, 2022. At times, to maintain a stable level of distributions, the Fund may pay out less than all of its net investment income or pay out accumulated undistributed income, or return of capital, in addition to current net investment income.

 

Performance of $10,000 Initial Investment (as of April 30, 2022)

 

 

The graph shown above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception. Past performance does not guarantee future results. All returns reflect reinvested dividends, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 
Semi-Annual Report | April 30, 2022 11

 

 

Clough Global Opportunities Fund Shareholder Letter

 

  April 30, 2022 (Unaudited)

 

To Our Investors,

 

For the semi-annual period ending April 30, 2022, the Clough Global Opportunities Fund (“GLO” or the “Fund”) had a total net return of -28.90% on net asset value (“NAV”) and -31.25% on market price compared to -10.62% for the 75% MSCI World Index/25% Bloomberg U.S. Aggregate Bond Index and -11.65% for the Morningstar Global Allocation Index for the same period.

 

Top 5 Contributors and Detractors for the Fund’s First Fiscal Half of the Year

 

The top contributor to performance for the first six months of the fiscal year was a long position in Checkmate Pharmaceuticals Inc., a clinical stage immunotherapy company, that announced it will be acquired by Regeneron Pharmaceuticals Inc. in a $250 million all cash deal. Two short positions in Rivian Automotive Inc., a fledgling produce of electric vehicle (“EV”) trucks, as well as Zscaler Inc., a security software company, contributed to performance as interest rates moved higher and the lofty company valuations proved to be unsustainable. Finally, long positions in two healthcare companies rounded out the top five contributors. McKesson Corp., a drug distributor and Vertex Pharmaceuticals Inc., a biotechnology company focused on cystic fibrosis, both rallied as their earnings exceeded Wall Street expectations.

 

Two of the weakest holdings to start the year were BYD Co Ltd. and Contemporary Amperex Technology Co Ltd. Both are leading battery makers for electric vehicles in China that struggled as continued COVID-related shutdowns in China lead to a decline in sales and production. Amazon.com Inc. suffered sharp declines as concerns regarding investment in its retail operations trumped its strong results in Amazon Web Services. Micron Technology Inc., the only U.S.-based producer of semiconductor memory, also declined in line with the technology sector during the first half of the year. Finally, C4 Therapeutics Inc., a biotechnology company, rounded out the bottom five.

 

New Themes Added in the Fund’s First Fiscal Half of the Year

 

DEFENSE AEROSPACE

 

During the period we added new positions in Northrop Grumman Corp. and Lockheed Martin Corp to the position in Raytheon Technologies Corp. we already held in the Fund. Defense stocks have been underperforming for years, reflecting a long period of underinvestment in our armed forces which began around the time of the fall of the former Soviet Union. One indication of our declining military proficiency is the number of hours per week flown by U.S. fighter pilots, which have fallen from the 60-70 norm to 10 hours per week according to a Wall Street Journal report. Few new aircraft have been developed over the past few decades. Only the F-35 fighter aircraft and an undetermined number of B-21 bombers are entering western fleets in large numbers. So, a defense investment cycle was perhaps inevitable, but Russia’s invasion of Ukraine likely brought it forward. Shortages of military platforms such as submarines, naval vessels, aircraft and land vehicles has become extreme at a time of growing geopolitical threats which can no longer be ignored. Demand comes not only from the need to supply U.S. forces, but those of Europe and Asian nations like Japan and Korea, as well.

 

Defense stocks tend to carry a premium multiple to the S&P 500 Index because they are backlogged businesses making operating results easier to predict, and they also typically have strong balance sheets and high cashflows. Free cash flow yields average 7-9% annually. We anticipate a move down to 5% or so as new programs are authorized.

 

Raytheon Technologies currently remains our largest holding in the sector. The company has a leading position in both commercial and military aerospace and space technologies. Its subsidiaries hold dominant and highly profitable positions in flight control systems (Collins Aerospace) and aircraft engines (Pratt and Whitney, whose engines hold the largest percentages on the A-320 neo). The company also sports a defense systems business with leading technologies in hyper sonics, as well as cyber missile defense systems. We also expect further synergies will continue to arise from the company’s 2020 merger with United Technologies.

 

ENERGY

 

Years of underinvestment in fossil fuel energy has caused global oil supplies to fall short of demand. That has taken inventories from the highest to the lowest level in over 30 years, according to Alpine Macro Research. So, the reality of actual shortages is only now becoming apparent. There have been little institutional capital flows into energy and despite the recent rally the sector only accounts for 4.2% of S&P 500 Index market capitalization. Since January 2020, domestic crude prices have increased by 50% while Henry Hub natural gas prices have tripled. Our focus is in the energy services and LNG sectors.

 

What is new in the present experience is the absence of any buffer of spare capacity in the energy system. During the energy crises of 1973 and 1979, the Organization of the Petroleum Exporting Countries (“OPEC”) maintained several million barrels per day of spare oil pumping capacity. That buffer fell to 2 million barrels a day in 2008, even as oil hit $145 per barrel. Now, that excess capacity is gone. For the past 15 years, nearly 90% of total non-OPEC oil production growth has come from U.S. shale operations. But that supply seems to be peaking and early signs of resource exhaustion are noticeable. The best drilling prospects have already been drilled and many fields are now declining. Since late 2019 production in the U.S. has declined by 1.5 million barrels a day. There is no other source of non-OPEC oil production available. Iran and Iraq may have a modest amount of excess capacity, but they have been producing close to as much as they can. Russia’s invasion of Ukraine simply brought these issues forward.

 

 

12 www.cloughglobal.com

 

 

Clough Global Opportunities Fund Shareholder Letter

 

  April 30, 2022 (Unaudited)

 

It appears to us that a new cycle of energy exploration will be required and since the oil service and equipment industry has been consolidating for two decades pricing and profitability in this new cycle should be very strong.

 

The natural gas investment cycle could be even stronger. Global demand is strong, and a cold European 2020-2021 winter drove European inventories to dangerously low levels. Ample shale gas in the U.S. has already led to a U.S. liquid natural gas export boom and so far, this has occurred while leaving the U.S. market well supplied. But that could change since the best wells have been drilled and the two earliest gas shale basins (Barnett and Fayetteville) have rolled over and are now running 60% below their peak production levels. The Fund currently holds a position in Cheniere Energy, Inc. the largest LNG producer and transportation company.

 

FIXED INCOME

 

The Fund is currently conservatively positioned due to the extreme volatility in the markets. Rather than hold a significant amount in cash sweep vehicles that pay very little in interest, the Fund has invested in two to three-year investment grade corporate bonds that yield between three and four percent. We view this as an attractive return for taking very little interest rate risk while waiting out very choppy markets.

 

The year so far has been a challenge, but we believe that over the summer inflationary pressures may reverse, perhaps sharply, and the markets’ perception of central bank policies will shift towards a more bullish liquidity stance. However, there is no upside to trying to anticipate when that may occur so we will sustain a conservative stance until the backdrop has unquestionably turned more bullish.

 

As always, please don’t hesitate to reach out to us with any questions or comments.

 

Sincerely,

 

 

Charles I Clough, Jr.

 

 

Robert M. Zdunczyk

 

This letter is provided for informational purposes only and is not an offer to purchase or sell shares. Clough Global Opportunities Fund (the “Fund”) is a closed- end fund, which is traded on the NYSE American LLC, and does not Equity Fund 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.

 

Although not generally stated throughout, the information in this letter reflects the opinions of the individual portfolio managers, which opinion is subject to change, and is not intended to be a forecast of future events, a guarantee of future results or investment advice.

 

The Morningstar Global Allocation Index represents a multi-asset class portfolio of 60% global equities and 40% global bonds. The asset allocation within each class is driven by Morningstar asset allocation methodology. To maintain broad global exposure and diversification, the index consists of equities & fixed income and utilizes global, float-weighted index methodology to determine allocation to U.S. and non-U.S.

 

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

 

 

Semi-Annual Report | April 30, 2022 13

 

 

Clough Global Opportunities Fund Shareholder Letter

 

  April 30, 2022 (Unaudited)

 

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

 

The blended indices, 50% MSCI World/50% Bloomberg U.S. Aggregate Bond Index and 75% MSCI World/25% Bloomberg U.S. Aggregate Bond Index, have been calculated by Clough Capital Partners L.P. based on the sources listed above.

 

The performance of the indices referenced herein is used for informational purposes only. One cannot invest directly in an index. Indices are not subject to any of the fees or expenses to which the Fund is subject, and there are significant differences between the Fund’s investments and the components of the indices referenced.

 

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.

 

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 1-855-425-6844. Read them carefully before investing.

 

The 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 the 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. For the fiscal year 2021, the Fund’s distribution policy resulted in distributions of capital in the amount of $44,110,259.

 

The 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.

 

The 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 the Fund in real estate investment trusts (“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 the 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 neither a guarantee, nor necessarily indicative, of future results, which may be significantly affected by changes in economic and other conditions.

 

 

14 www.cloughglobal.com

 

 

Clough Global Opportunities Fund Portfolio Allocation

 

  April 30, 2022 (Unaudited)

  

Top 10 Equity Holdings(a)(d) % of Total Portfolio
1. Microsoft Corp. 4.92%
2. Apple, Inc. 4.25%
3. Raytheon Technologies Corp. 3.72%
4. Starwood Property Trust, Inc. 3.62%
5. Visa, Inc. 2.62%
6. Exxon Mobil Corp. 2.34%
7. Booking Holdings, Inc. 2.28%
8. Kinder Morgan, Inc. 2.25%
9. The Boeing Co. 2.20%
10. Royal Caribbean Cruises Ltd. 2.17%

 

Global Securities Holdings(a) % of Total Portfolio
United States 79.83%
U.S. Multinationals(b) 19.87%
France 1.79%
Switzerland 0.99%
Canada 0.61%
Other -3.09%
TOTAL INVESTMENTS 100.00%
Asset Allocation(a) % of Total Portfolio
Common Stock - US 39.55%
Common Stock - Foreign 22.80%
Exchange Traded Funds -3.45%
Total Equities 58.91%
   
Government L/T 25.63%
Corporate Debt 10.33%
Total Fixed Income 35.96%
   
Short-Term Investments 7.04%
Warrant 0.95%
Purchased & Written Options 0.21%
Other (Cash) -3.06%
   
TOTAL INVESTMENTS 100.00%

 

Country Allocation(c) Long
Exposure
%NAV
Short
Exposure
%NAV
Gross
Exposure
%NAV
Net
Exposure
%NAV
United States 122.2% -12.4% 134.6% 109.8%
U.S. Multinationals(b) 39.8% -12.4% 52.2% 27.4%
France 2.5% 0.0% 2.5% 2.5%
Switzerland 1.4% 0.0% 1.4% 1.4%
Canada 0.8% 0.0% 0.8% 0.8%
Other 0.0% -4.3% 4.3% -4.3%
TOTAL INVESTMENTS 166.7% -29.1% 195.8% 137.6%

 

(a) Percentages calculated based on total portfolio, including securities sold short, cash balances, market value of futures, and notional value of return swaps.

(b) U.S. Multinationals includes companies organized or located in the United States that have more than 50% of revenues derived outside of the United States.

(c) Percentages calculated based on the net asset value of the Fund.

(d) Only long equity and equity-related positions are listed.


 

Semi-Annual Report | April 30, 2022 15

 

 

Clough Global Opportunities Fund Portfolio Allocation

 

  April 30, 2022 (Unaudited)

 

Total Return as of April 30, 2022(a)

  1 Year 3 Year 5 Year Since Inception(b)
Clough Global Opportunities Fund - NAV(c) -29.08% 3.14% 5.28% 4.84%
Clough Global Opportunities Fund - Market Price(d) 25.84% 7.32% 7.15% 4.62%
Morningstar Global Allocation Index -8.37% 5.46% 6.07% 5.66%
25% Bloomberg Barclays US Aggregate / 75% MSCI World GR -4.35% 8.53% 8.53% 6.56%

 

(a) Total returns assume reinvestment of all distributions.

(b) The Fund commenced operation on April 25, 2006.

(c) Performance returns are net of management fees and other Fund expenses.

(d) Market price is the value at which the Fund trades on an exchange. This market price can be more or less than its NAV.

 

Distribution to Common Stockholders

 

The Fund intends to make monthly distributions to common shareholders according to its managed distribution policy. The Fund’s managed distribution policy is to set the monthly distribution rate at an amount equal to one twelfth of 10% of the Fund’s adjusted year-ending net asset value per share (“NAV”), which will be the average of the NAVs as of the last five business days of the prior calendar year. The Board of Directors approve the distribution and may adjust it from time to time. The monthly distribution amount paid from October 1, 2021 to December 31, 2021 was $0.1087 per share and the Fund paid $0.0943 per share monthly between January 1, 2022 and April 30, 2022. At times, to maintain a stable level of distributions, the Fund may pay out less than all of its net investment income or pay out accumulated undistributed income, or return of capital, in addition to current net investment income.

 

Performance of $10,000 Initial Investment (as of April 2022)

 

 

 

The graph shown above represents historical performance of a hypothetical investment of $10,000 in the Fund since inception. Past performance does not guarantee future results. All returns reflect reinvested dividends, but do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

 

 

16 www.cloughglobal.com

 

 

Clough Global Dividend and Income Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

    Shares     Value  
COMMON STOCKS 72.12%                
Consumer Discretionary 2.86%                
DR Horton, Inc.(a)(b)     23,500     $ 1,635,365  
Lennar Corp. - Class A(a)(b)     16,640       1,272,794  
              2,908,159  
                 
Energy 7.58%                
Cheniere Energy, Inc.     14,300       1,942,083  
Exxon Mobil Corp.(a)(b)     34,500       2,941,125  
Kinder Morgan, Inc.     155,500       2,822,324  
              7,705,532  
                 
Financials 12.86%                
Equitable Holdings, Inc.(a)(b)     51,400       1,481,862  
First American Financial Corp.(a)(b)     50,890       2,967,396  
Redwood Trust, Inc.(a)(b)     234,700       2,276,590  
Starwood Property Trust, Inc.(a)(b)     199,300       4,559,984  
Walker & Dunlop, Inc.(a)(b)     14,870       1,780,831  
              13,066,663  
                 
Health Care 9.40%                
Eli Lilly & Co.(a)(b)     12,013       3,509,358  
McKesson Corp.(a)     904       279,887  
Pfizer, Inc.(a)(b)     48,100       2,360,267  
Stryker Corp.     3,700       892,662  
UnitedHealth Group, Inc.(a)(b)     2,740       1,393,427  
Zimmer Biomet Holdings, Inc.     9,200       1,110,900  
              9,546,501  
                 
Industrials 17.44%                
Airbus SE     16,265       1,810,940  
Lockheed Martin Corp.     3,380       1,460,566  
Northrop Grumman Corp.     5,670       2,491,398  
Raytheon Technologies Corp.(a)(b)     94,150       8,935,776  
TransDigm Group, Inc.(a)(b)(c)     5,077       3,019,850  
              17,718,530  
                 
Information Technology 21.98%                
Apple, Inc.(a)(b)     33,520       5,284,428  
Microsoft Corp.(a)(b)     21,065       5,845,959  
NVIDIA Corp.(a)(b)     11,885       2,204,311  
Visa, Inc. - Class A(a)(b)     42,190       8,991,955  
              22,326,653  
                 
TOTAL COMMON STOCKS                
(Cost $70,745,112)             73,272,038  
    Shares     Value  
EXCHANGE TRADED FUNDS 2.47%          
VanEck Vectors® Oil Services ETF(a)(b)     9,510     $ 2,508,358  
                 
TOTAL EXCHANGE TRADED FUNDS          
(Cost $2,470,208)             2,508,358  
                 
PREFERRED STOCKS 1.05%                
Gabelli Equity Trust, Inc.                
Series K, Perpetual Maturity 5.000%(d)     21,200       487,600  
Trinity Capital, Inc., 01/16/2025 7.000%(a)     22,400       586,600  
                 
TOTAL PREFERRED STOCKS                
(Cost $1,090,000)             1,074,200  

 

Underlying Security/Expiration Date/Exercise Price/Notional Amount   Contracts     Value  
PURCHASED OPTIONS 0.38%                
Put Options Purchased 0.38%                
S&P 500® Index 05/20/22, $4,150, $13,222,176     32       383,200  
                 
Total Put Options Purchased                
(Cost $508,284)             383,200  
             
Description/Maturity Date/Rate   Principal
Amount
    Value  
CORPORATE BONDS 24.56%                
Consumer Discretionary                
Carnival Corp.                
03/01/2026, 7.625%(e)(f)   $ 1,000,000       979,890  
Carvana Co.                
10/01/2025, 5.625%(e)(f)     500,000       434,015  
Melco Resorts Finance, Ltd.                
07/21/2028, 5.750%(e)(f)     250,000       211,322  
PulteGroup, Inc.                
01/15/2027, 5.000%     500,000       514,220  
              2,139,447  
                 
Consumer Staples                
JDE Peet's NV                
01/15/2027, 1.375%(e)(f)     1,000,000       873,523  
                 
Financials                
Bank of Montreal                
01/10/2025, 1.500%     1,000,000       949,136  
Blackstone Secured Lending Fund                
01/15/2026, 3.625%     500,000       478,930  
Capital One Financial Corp.                
12/06/2024, 1D US SOFR + 0.69%(g)     1,000,000       961,646  


See Notes to the Financial Statements.

 

Semi-Annual Report | April 30, 2022 17

 

 

Clough Global Dividend and Income Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

Description/Maturity Date/Rate   Principal
Amount
    Value  
CORPORATE BONDS (continued)                
Golub Capital BDC, Inc.                
04/15/2024, 3.375%   $ 500,000     $ 491,034  
08/24/2026, 2.500%(a)     1,035,000       923,677  
JPMorgan Chase & Co.                
04/26/2026, 1D US SOFR + 1.32%(g)     1,000,000       997,914  
Main Street Capital Corp.                
12/01/2022, 4.500%(a)     1,043,000       1,054,073  
07/14/2026, 3.000%(a)(b)     1,600,000       1,457,562  
Morgan Stanley                
Series GMTN, 01/27/2026, 3.875%     1,000,000       992,059  
Nationstar Mortgage Holdings, Inc.                
12/15/2030, 5.125%(a)(b)(e)(f)     1,500,000       1,306,717  
11/15/2031, 5.750%(e)(f)     500,000       444,428  
Owl Rock Capital Corp.                
01/15/2027, 2.625%(a)     1,260,000       1,112,022  
Owl Rock Technology Finance Corp.                
06/30/2025, 6.750%(a)(e)(f)     1,000,000       1,023,745  
12/15/2025, 4.750%(a)(e)(f)     1,000,000       970,290  
Signature Bank                
11/01/2029, 3M US L + 2.559%(g)     500,000       496,135  
Sixth Street Specialty Lending, Inc.                
11/01/2024, 3.875%     1,000,000       994,529  
SLR Investment Corp.                
01/20/2023, 4.500%     500,000       500,131  
SVB Financial Group                
01/29/2025, 3.500%     510,000       507,077  
Trinity Capital, Inc.                
08/24/2026, 4.375%     500,000       464,666  
              16,125,771  
                 
Industrials                
Alaska Airlines 2020-1 Class B Pass Through Trust                
08/15/2025, 8.000%(a)(e)(f)     1,443,688       1,506,761  
American Airlines 2014-1 Class A Pass Through Trust                
10/01/2026, 3.700%     900,438       858,558  
Hexcel Corp.                
02/15/2027, 4.200%(a)     1,000,000       981,815  
Raytheon Technologies Corp.                
08/16/2025, 3.950%     1,000,000       1,011,781  
United Airlines 2018-1 Class AA Pass Through Trust                
Series AA, 03/01/2030, 3.500%     833,896       774,681  
US Airways 2012-2 Class A Pass Through Trust                
06/03/2025, 4.625%     710,690       682,887  
              5,816,483  
                 
TOTAL CORPORATE BONDS                
(Cost $26,513,994)             24,955,224  
Description/Maturity Date/Rate   Principal
Amount
    Value  
CONVERTIBLE CORPORATE BONDS 2.82%  
Financials                
Starwood Property Trust, Inc.                
04/01/2023, 4.375%(a)(b)   $ 977,000     $ 980,664  
                 
Health Care                
Gossamer Bio, Inc.                
06/01/2027, 5.000%(a)(b)     1,070,000       762,375  
Teladoc Health, Inc.                
06/01/2027, 1.250%(a)(b)     1,500,000       1,119,750  
              1,882,125  
   
TOTAL CONVERTIBLE CORPORATE BONDS  
(Cost $3,483,144)             2,862,789  
                 
ASSET-BACKED SECURITIES 0.04%          
United States Small Business Administration                
Series 2008-20L, Class 1, 12/01/2028, 6.220%(a)(b)     37,993       40,252  
                 
TOTAL ASSET-BACKED SECURITIES  
(Cost $37,993)             40,252  
                 
GOVERNMENT & AGENCY OBLIGATIONS 47.53%  
U.S. Treasury Notes                
12/31/2023, 0.750%(a)     16,000,000       15,512,500  
01/31/2024, 0.875%(a)     5,000,000       4,848,828  
06/30/2024, 1.750%(a)     2,000,000       1,957,187  
02/28/2025, 1.125%(a)     3,900,000       3,715,969  
03/15/2025, 1.750%(a)     8,000,000       7,750,625  
01/31/2026, 2.625%     2,500,000       2,471,973  
02/28/2027, 1.125%(a)     6,600,000       6,062,461  
11/15/2027, 2.250%(a)     6,200,000       5,975,734  
                 
TOTAL GOVERNMENT & AGENCY OBLIGATIONS  
(Cost $50,823,775)             48,295,277  

 

    Shares     Value  
SHORT-TERM INVESTMENTS 4.60%  
Money Market Funds 4.60%                
BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (0.296% 7-day yield)     4,676,335       4,676,335  
                 
TOTAL SHORT-TERM INVESTMENTS       4,676,335  
(Cost $4,676,335)                


See Notes to the Financial Statements.

 

18 www.cloughglobal.com

 

 

Clough Global Dividend and Income Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

    Shares     Value  
SHORT-TERM INVESTMENTS (continued)      
Total Investments - 155.57%                
(Cost $160,348,845)           $ 158,067,673  
                 
Other Assets in Excess of Liabilities - (55.57%)(h)           (56,464,870 )
                 
NET ASSETS - 100.00%           $ 101,602,803  
                 

 

SCHEDULE OF SECURITIES SOLD SHORT   Shares     Value  
COMMON STOCKS (14.80%)                
Communication Services (0.69%)                
Sea, Ltd. - ADR(c)     (8,420 )     (696,839 )
                 
Consumer Discretionary (3.76%)                
CarMax, Inc.(c)     (22,100 )     (1,895,738 )
QuantumScape Corp.(c)     (62,600 )     (935,244 )
Rivian Automotive, Inc. - Class A(c)     (32,600 )     (985,824 )
              (3,816,806 )
                 
Financials (2.03%)                
Deutsche Bank AG(c)     (144,300 )     (1,425,684 )
Rocket Cos., Inc.(c)     (46,600 )     (412,410 )
UWM Holdings Corp.(c)     (59,900 )     (222,229 )
              (2,060,323 )
             
Health Care (1.60%)            
ABIOMED, Inc.(c)     (1,600 )     (458,528 )
Envista Holdings Corp.(c)     (29,600 )     (1,172,752 )
              (1,631,280 )
                 
Industrials (1.06%)                
Snap-on, Inc.(c)     (5,080 )     (1,079,449 )
                 
Information Technology (5.66%)                
International Business Machines Corp.(c)     (14,310 )     (1,891,925 )
MongoDB, Inc.(c)     (1,160 )     (411,719 )
Monolithic Power Systems, Inc.(c)     (1,530 )     (600,127 )
RingCentral, Inc. - Class A(c)     (8,370 )     (710,195 )
United Microelectronics Corp. -Sponsored ADR(c)     (220,400 )     (1,754,384 )
Zscaler, Inc.(c)     (1,900 )     (385,206 )
              (5,753,556 )
                 
TOTAL COMMON STOCKS              
(Proceeds $18,138,657)             (15,038,253 )
                 
EXCHANGE TRADED FUNDS (6.77%)          
Invesco QQQ ™ Trust Series 1(c)     (8,900 )     (2,787,925 )
iShares® U.S. Medical Devices ETF(c)     (26,400 )     (1,452,528 )

SCHEDULE OF SECURITIES SOLD      
SHORT (continued)   Shares     Value  
EXCHANGE TRADED FUNDS (continued)          
SPDR S&P 500® ETF Trust(c)     (6,400 )   $ (2,636,800 )
                 
TOTAL EXCHANGE TRADED FUNDS          
(Proceeds $7,150,488)             (6,877,253 )
                 
TOTAL SECURITIES SOLD SHORT          
(Proceeds $25,289,145)           $ (21,915,506 )


See Notes to the Financial Statements.

 

Semi-Annual Report | April 30, 2022  19

 

 

Clough Global Dividend and Income Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

Investment Abbreviations: 

SOFR - Secured Overnight Financing Rate

 

FEDEF Rates: 

3M US L - 3 Month LIBOR as of April 30, 2022 was 1.36% 

1D US SOFR-1 Day SOFR as of April 30, 2022 was 0.28%

 

(a) Pledged security; a portion or all of the security is pledged as collateral for securities sold short, or borrowings. As of April 30, 2022, the aggregate value of those securities was $112,454,525, representing 110.68% of net assets.
(See Note 1)

(b) Loaned security; a portion or all of the security is on loan as of April 30, 2022.

(c) Non-income producing security.

(d) This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.

(e) Security is exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of April 30, 2022, these securities had an aggregate value of $7,750,691 or 7.63% of net assets.

(f) Restricted Security (See Note 1).

(g) Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at April 30, 2022. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above.

(h) Includes cash which is being held as collateral for 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.



See Notes to the Financial Statements.

 

20 www.cloughglobal.com

 

 

Clough Global Dividend and Income Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

CALL OPTIONS WRITTEN

 

Underlying Security   Counterparty   Expiration
Date
  Strike
Price
    Contracts     Notional
Amount
    Value  
S&P 500® Index   Morgan Stanley   05/20/2022   $ 3,850     (32)   $ 13,222,176     $ (124,160 )
                          $ 13,222,176     $ (124,160 )

 

See Notes to the Financial Statements.

 

Semi-Annual Report | April 30, 2022 21

 

 

Clough Global Equity Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

    Shares     Value  
COMMON STOCKS 102.56%                
Communication Services 1.62%                
Alphabet, Inc. - Class C(a)(b)(c)     1,330     $ 3,058,109  
                 
Consumer Discretionary 15.68%                
Amazon.com, Inc.(a)(b)(c)     2,173       5,401,274  
Booking Holdings, Inc.(a)(b)(c)     2,681       5,925,841  
Carnival Corp.(a)(b)(c)     275,200       4,760,960  
DR Horton, Inc.(b)(c)     48,000       3,340,320  
Lennar Corp. - Class A(b)(c)     33,980       2,599,130  
Royal Caribbean Cruises Ltd.(a)(b)(c)     71,120       5,528,158  
Tesla, Inc.(a)(b)(c)     2,352       2,048,027  
              29,603,710  
                 
Energy 8.38%                
Cheniere Energy, Inc.(b)     29,300       3,979,233  
Exxon Mobil Corp.(b)(c)     70,900       6,044,225  
Kinder Morgan, Inc.(b)(c)     319,500       5,798,925  
              15,822,383  
                 
Financials 9.45%                
Equitable Holdings, Inc.(b)(c)     108,200       3,119,406  
First American Financial Corp.(b)(c)     92,290       5,381,430  
Starwood Property Trust, Inc.(b)(c)     408,600       9,348,768  
              17,849,604  
                 
Health Care 21.72%                
Amphivena Therapeutics, Inc. - Series C(a)(d)(e)(f)(g)(h)     334,425       1,337,366  
Apellis Pharmaceuticals, Inc.(a)(b)(c)     32,177       1,400,665  
Arcellx, Inc.(a)(b)     189,127       2,067,158  
Arcellx, Inc.(a)(d)(f)(h)     90,937       967,712  
Boston Scientific Corp.(a)(b)     55,700       2,345,527  
C4 Therapeutics, Inc.(a)(b)     88,500       758,445  
Centrexion Therapeutics Corp.(a)(d)(e)(g)(h)     4,336       52,331  
Centrexion Therapeutics Corp. - Series D Preferred  Shares(a)(d)(e)(f)(g)(h)     66,719       805,232  
Community Health Systems, Inc.(a)(b)(c)     126,712       971,881  
CRISPR Therapeutics AG(a)(b)(c)     52,050       2,582,721  
Doximity, Inc. - Class A(a)(b)(c)     54,990       2,192,451  
Hologic, Inc.(a)(b)(c)     31,540       2,270,565  
Intuitive Surgical, Inc.(a)     6,240       1,493,232  
iRhythm Technologies, Inc.(a)(b)     11,045       1,362,622  
Legend Biotech Corp. - ADR(a)(b)(c)     30,400       1,220,560  
McKesson Corp.(b)(c)     1,956       605,597  
Pfizer, Inc.(b)(c)     99,500       4,882,465  
Stryker Corp.(b)     7,760       1,872,178  
Surgery Partners, Inc.(a)(b)(c)     73,000       3,734,680  
Tenet Healthcare Corp.(a)(b)(c)     39,650       2,875,021  
UnitedHealth Group, Inc.(b)(c)     5,660       2,878,393  
    Shares     Value  
Health Care (continued)                
Zimmer Biomet Holdings, Inc.(b)     19,310     $ 2,331,682  
              41,008,484  
                 
Industrials 17.68%                
Airbus SE     40,545       4,514,268  
The Boeing Co.(a)(b)     37,340       5,557,685  
Hertz Global Holdings, Inc.(a)(b)(c)     43,000       862,580  
Lockheed Martin Corp.(b)     6,930       2,994,592  
Northrop Grumman Corp.(b)(c)     11,820       5,193,708  
Raytheon Technologies Corp.(b)(c)     101,070       9,592,554  
TransDigm Group, Inc.(a)(b)(c)     7,832       4,658,552  
              33,373,939  
                 
Information Technology 28.03%(i)                
Apple, Inc.(b)(c)     69,310       10,926,722  
Block, Inc. - Class A(a)(b)     39,960       3,977,618  
GoDaddy, Inc. - Class A(a)(b)(c)     47,700       3,854,637  
Lumentum Holdings, Inc.(a)     19,600       1,591,716  
Microsoft Corp.(b)(c)     44,715       12,409,307  
NVIDIA Corp.(b)     23,940       4,440,152  
Palo Alto Networks, Inc.(a)(b)(c)     9,705       5,447,222  
ServiceNow, Inc.(a)(b)(c)     7,410       3,542,721  
Visa, Inc. - Class A(b)(c)     31,540       6,722,120  
              52,912,215  
                 
TOTAL COMMON STOCKS                
(Cost $200,278,976)             193,628,444  
                 
EXCHANGE TRADED FUNDS 2.70%          
VanEck Vectors® Oil Services ETF(b)(c)     19,320       5,095,843  
                 
TOTAL EXCHANGE TRADED FUNDS          
(Cost $5,013,906)             5,095,843  
                 
WARRANTS 1.27%(a)                
Hertz Global Holdings, Inc., Strike Price $13.80, Expires 6/30/2051(b)     171,590       2,402,260  
                 
TOTAL WARRANTS                
(Cost $2,854,844)             2,402,260  
                 
Underlying Security/Expiration Date/Exercise Price/Notional Amount     Contracts       Value  
PURCHASED OPTIONS 0.40%                
Put Options Purchased 0.40%                
S&P 500® Index                


See Notes to the Financial Statements.

 

22 www.cloughglobal.com

 

 

Clough Global Equity Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

Underlying Security/Expiration Date/      
Exercise Price/Notional Amount   Contracts     Value  
Put Options Purchased (continued)                
05/20/22, $4,150, $26,444,352     64     $ 766,400  
                 
Total Put Options Purchased                
(Cost $1,017,842)             766,400  

 

Description/Maturity Date/Rate   Principal Amount     Value  
CONVERTIBLE CORPORATE BONDS 0.06%  
Health Care                
Amphivena Convertible Note PP                
08/25/2022 (d)(e)(f)(g)(h)   $ 108,750       108,750  
                 
TOTAL CONVERTIBLE CORPORATE BONDS  
(Cost $108,750)             108,750  
                 
GOVERNMENT & AGENCY OBLIGATIONS 40.07%  
U.S. Treasury Notes                
09/30/2023, 0.250%(b)     10,000,000       9,692,969  
12/31/2023, 0.750%(b)     29,000,000       28,116,406  
01/31/2024, 0.875%(b)     7,000,000       6,788,359  
03/15/2025, 1.750%(b)     20,000,000       19,376,563  
01/31/2026, 2.625%(b)     9,000,000       8,899,102  
11/30/2026, 1.250%(b)     3,000,000       2,783,320  
                 
TOTAL GOVERNMENT & AGENCY OBLIGATIONS  
(Cost $77,425,562)             75,656,719  

 

    Shares     Value  
SHORT-TERM INVESTMENTS 17.04%  
Money Market Funds 17.04%  
BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (0.296% 7-day yield)     32,164,692       32,164,692  
                 
TOTAL SHORT-TERM INVESTMENTS  
(Cost $32,164,692)             32,164,692  
                 
Total Investments - 164.10%                
(Cost $318,864,572)             309,823,108  
                 
Other Assets in Excess of Liabilities - (64.10%)(j)             (121,024,749 )
                 
NET ASSETS - 100.00%           $ 188,798,359  
SCHEDULE OF SECURITIES SOLD SHORT   Shares     Value  
COMMON STOCKS (17.84%)  
Communication Services (0.77%)  
Sea, Ltd. - ADR(a)     (17,680 )   $ (1,463,197 )
                 
Consumer Discretionary (4.16%)  
CarMax, Inc.(a)     (45,600 )     (3,911,568 )
QuantumScape Corp.(a)     (129,000 )     (1,927,260 )
Rivian Automotive, Inc. - Class A(a)     (66,500 )     (2,010,960 )
              (7,849,788 )
Financials (2.93%)                
Deutsche Bank AG(a)     (298,600 )     (2,950,168 )
Rocket Cos., Inc.(a)     (239,700 )     (2,121,345 )
UWM Holdings Corp.(a)     (124,100 )     (460,411 )
              (5,531,924 )
Health Care (2.51%)                
ABIOMED, Inc.(a)     (3,300 )     (945,714 )
Atara Biotherapeutics, Inc.(a)     (43,400 )     (276,024 )
Bluebird Bio, Inc.(a)     (87,700 )     (318,351 )
Deciphera Pharmaceuticals, Inc.(a)     (74,600 )     (754,952 )
Envista Holdings Corp.(a)     (61,500 )     (2,436,630 )
              (4,731,671 )
Industrials (1.23%)                
Snap-on, Inc.(a)     (10,920 )     (2,320,391 )
                 
Information Technology (6.24%)  
International Business Machines Corp.(a)     (29,100 )     (3,847,311 )
MongoDB, Inc.(a)     (2,380 )     (844,733 )
Monolithic Power Systems, Inc.(a)     (3,110 )     (1,219,866 )
RingCentral, Inc. - Class A(a)     (17,450 )     (1,480,633 )
United Microelectronics Corp. -Sponsored ADR(a)     (453,200 )     (3,607,472 )
Zscaler, Inc.(a)     (3,900 )     (790,686 )
              (11,790,701 )
                 
TOTAL COMMON STOCKS                
(Proceeds $40,990,518)             (33,687,672 )
                 
EXCHANGE TRADED FUNDS (7.45%)                
Invesco QQQ ™ Trust Series 1(a)     (18,000 )     (5,638,500 )
iShares® U.S. Medical Devices ETF(a)     (54,100 )     (2,976,582 )
SPDR S&P 500® ETF Trust(a)     (13,200 )     (5,438,400 )


See Notes to the Financial Statements.

 

Semi-Annual Report | April 30, 2022 23

 

 

Clough Global Equity Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

SCHEDULE OF SECURITIES SOLD SHORT (continued)   Shares     Value  
EXCHANGE TRADED FUNDS (continued)  
   
TOTAL EXCHANGE TRADED FUNDS          
(Proceeds $14,610,687)           $ (14,053,482 )
                 
TOTAL SECURITIES SOLD SHORT          
(Proceeds $55,601,205)           $ (47,741,154 )

 

(a) Non-income producing security.

(b) Pledged security; a portion or all of the security is pledged as collateral for securities sold short, or borrowings. As of April 30, 2022, the aggregate value of those securities was $237,979,058, representing 126.05% of net assets.
(See Note 1)

(c) Loaned security; a portion or all of the security is on loan as of April 30, 2022.

(d) Restricted Security (See Note 1).

(e) 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)

(f) All or a portion of the security is exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of April 30, 2022, these securities had an aggregate value of $3,219,060 or 1.71% of net assets.

(g) Private Placement; these securities may only be resold in transactions exempt from registration under the Securities Act of 1933. As of April 30, 2022, these securities had an aggregate value of $2,303,679 or 1.22% of net assets.

(h) Fair valued security; valued by management in accordance with procedures approved by the Board. As of April 30, 2022, these securities had an aggregate value of $2,303,679 or 1.22% of total net assets.

(i) When sector categorization is categorized by industry, no industry exceeds the 25% maximum specified in the Statement of Additional Information.

(j) Includes cash which is being held as collateral for 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.



See Notes to the Financial Statements.

 

24 www.cloughglobal.com

 

 

Clough Global Equity Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

CALL OPTIONS WRITTEN
 
Underlying Security   Counterparty   Expiration
Date
    Strike
Price
    Contracts     Notional
Amount
    Value  
S&P 500® Index   Morgan Stanley   05/20/2022     $ 3,850     (64)   $ 26,444,352     $ (248,320 )
                            $ 26,444,352     $ (248,320 )

 

See Notes to the Financial Statements.

 

Semi-Annual Report | April 30, 2022 25

 

 

Clough Global Opportunities Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

    Shares     Value  
COMMON STOCKS 103.09%                
Communication Services 1.67%                
Alphabet, Inc. - Class C(a)(b)(c)     2,482     $ 5,706,937  
                 
Consumer Discretionary 15.91%                
Amazon.com, Inc.(a)(b)(c)     4,072       10,121,485  
Booking Holdings, Inc.(a)(b)     4,854       10,728,845  
Carnival Corp.(a)(b)(c)     507,670       8,782,691  
DR Horton, Inc.(b)(c)     87,500       6,089,125  
Lennar Corp. - Class A(b)(c)     61,979       4,740,774  
Royal Caribbean Cruises Ltd.(a)(b)(c)     131,647       10,232,921  
Tesla, Inc.(a)(b)(c)     4,275       3,722,499  
              54,418,340  
                 
Energy 8.43%                
Cheniere Energy, Inc.(b)(c)     53,400       7,252,254  
Exxon Mobil Corp.(b)     129,100       11,005,775  
Kinder Morgan, Inc.(b)(c)     582,034       10,563,917  
              28,821,946  
                 
Financials 9.58%                
Equitable Holdings, Inc.(b)(c)     195,900       5,647,797  
First American Financial Corp.(b)(c)     172,470       10,056,726  
Starwood Property Trust, Inc.(b)(c)     745,000       17,045,600  
              32,750,123  
                 
Health Care 21.85%                
Amphivena Therapeutics, Inc. - Series C(a)(d)(e)(f)(g)(h)     780,326       3,120,524  
Apellis Pharmaceuticals, Inc.(a)(b)(c)     59,466       2,588,555  
Arcellx, Inc.(a)(b)     328,113       3,586,275  
Arcellx, Inc.(a)(d)(e)(h)     209,080       2,224,939  
Boston Scientific Corp.(a)(b)     101,400       4,269,954  
C4 Therapeutics, Inc.(a)(b)     161,281       1,382,178  
Centrexion Therapeutics Corp.(a)(d)(f)(g)(h)     14,166       170,969  
Centrexion Therapeutics Corp. - Series D Preferred Shares(a)(d)(e)(f)(g)(h)     217,952       2,630,463  
Community Health Systems, Inc.(a)(b)(c)     234,387       1,797,748  
CRISPR Therapeutics AG(a)(b)(c)     93,798       4,654,257  
Doximity, Inc. - Class A(a)(b)(c)     101,840       4,060,361  
Hologic, Inc.(a)(b)(c)     58,390       4,203,496  
Intuitive Surgical, Inc.(a)(b)     11,280       2,699,304  
Legend Biotech Corp. - ADR(a)(b)(c)     56,391       2,264,099  
McKesson Corp.(b)(c)     3,616       1,119,550  
Pfizer, Inc.(b)(c)     181,200       8,891,484  
Stryker Corp.(b)     14,050       3,389,703  
Surgery Partners, Inc.(a)(b)(c)     135,081       6,910,744  
Tenet Healthcare Corp.(a)(b)(c)     73,540       5,332,385  
UnitedHealth Group, Inc.(b)(c)     10,240       5,207,552  
    Shares     Value  
Health Care (continued)                
Zimmer Biomet Holdings, Inc.(b)     35,020     $ 4,228,665  
              74,733,205  
                 
Industrials 17.20%                
Airbus SE     75,828       8,442,665  
The Boeing Co.(a)(b)(c)     69,585       10,357,032  
Hertz Global Holdings, Inc.(a)(b)     79,600       1,596,776  
Lockheed Martin Corp.(b)     12,610       5,449,033  
Northrop Grumman Corp.(b)(c)     21,420       9,411,948  
Raytheon Technologies Corp.(b)(c)     184,220       17,484,320  
TransDigm Group, Inc.(a)(b)(c)     10,258       6,101,561  
              58,843,335  
                 
Information Technology 28.45%(i)                
Apple, Inc.(b)     126,720       19,977,408  
Block, Inc. - Class A(a)(b)     72,670       7,233,572  
GoDaddy, Inc. - Class A(a)(b)(c)     88,400       7,143,604  
Lumentum Holdings, Inc.(a)(b)     35,900       2,915,439  
Microsoft Corp.(b)(c)     83,390       23,142,393  
NVIDIA Corp.(b)(c)     44,350       8,225,595  
Palo Alto Networks, Inc.(a)(b)(c)     17,690       9,929,043  
ServiceNow, Inc.(a)(b)(c)     13,440       6,425,664  
Visa, Inc. - Class A(b)(c)     57,780       12,314,651  
              97,307,369  
                 
TOTAL COMMON STOCKS                
(Cost $366,799,211)             352,581,255  
                 
EXCHANGE TRADED FUNDS 2.71%                
VanEck Vectors® Oil Services ETF(b)(c)     35,190       9,281,714  
                 
TOTAL EXCHANGE TRADED FUNDS                
(Cost $9,131,756)             9,281,714  
                 
WARRANTS 1.30%(a)                
Hertz Global Holdings, Inc., Strike Price $13.80, Expires 6/30/2051(b)(c)     318,034       4,452,476  
                 
TOTAL WARRANTS                
(Cost $5,290,776)             4,452,476  

 

Underlying Security/Expiration Date/Exercise Price/Notional Amount     Contracts       Value  
PURCHASED OPTIONS 0.42%                
Put Options Purchased 0.42%                
S&P 500® Index                

 

See Notes to the Financial Statements.

 

26 www.cloughglobal.com

 

 

Clough Global Opportunities Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

Underlying Security/Expiration Date/Exercise Price/Notional Amount   Contracts     Value  
Put Options Purchased (continued)                
05/20/22, $4,150, $49,583,160     120     $ 1,437,000  
                 
Total Put Options Purchased                
(Cost $1,907,658)             1,437,000  
                 
             
Description/Maturity Date/Rate   Principal
Amount
    Value  
CORPORATE BONDS 13.79%                
Financials                
Bank of Montreal                
01/10/2025, 1.500%   $ 3,000,000       2,847,408  
Goldman Sachs Group, Inc.                
04/01/2025, 3.500%     3,000,000       2,958,450  
Golub Capital BDC, Inc.                
08/24/2026, 2.500%(b)     4,130,000       3,685,786  
JPMorgan Chase & Co.                
04/26/2026, 1D US SOFR + 1.32%(j)     3,000,000       2,993,742  
Main Street Capital Corp.                
07/14/2026, 3.000%(b)     1,500,000       1,366,464  
Morgan Stanley                
Series GMTN, 01/27/2026, 3.875%     3,000,000       2,976,176  
Nationstar Mortgage Holdings, Inc.                
12/15/2030, 5.125%(b)(d)(e)     1,510,000       1,315,429  
11/15/2031, 5.750%(d)(e)     2,500,000       2,222,138  
Owl Rock Technology Finance Corp.                
12/15/2025, 4.750%(b)(d)(e)     4,000,000       3,881,161  
Signature Bank                
11/01/2029, 3M US L + 2.559%(b)(j)     2,000,000       1,984,538  
Sixth Street Specialty Lending, Inc.                
08/01/2026, 2.500%     1,000,000       903,932  
SVB Financial Group                
01/29/2025, 3.500%     3,050,000       3,032,520  
              30,167,744  
                 
Industrials                
Alaska Airlines 2020-1 Class B Pass Through Trust                
08/15/2025, 8.000%(b)(c)(d)(e)     4,331,064       4,520,283  
American Airlines 2014-1 Class A Pass Through Trust                
10/01/2026, 3.700%     3,601,753       3,434,232  
American Airlines 2019-1 Class A Pass Through Trust                
Series A, 02/15/2032, 3.500%     3,566,291       3,114,283  
Hexcel Corp.                
08/15/2025, 4.950%(b)     1,000,000       1,013,319  
Description/Maturity Date/Rate   Principal
Amount
    Value  
CORPORATE BONDS (continued)                
02/15/2027, 4.200%(b)   $ 5,000,000     $ 4,909,075  
              16,991,192  
                 
TOTAL CORPORATE BONDS                
(Cost $49,749,154)             47,158,936  
                 
CONVERTIBLE CORPORATE BONDS 0.43%
Financials                
Starwood Property Trust, Inc. 04/01/2023, 4.375%(b)     1,200,000       1,204,500  
                 
Health Care                
Amphivena Convertible Note PP 08/25/2022 (e)(f)(g)(h)     253,750       253,750  
                 
                 
TOTAL CONVERTIBLE CORPORATE BONDS  
(Cost $1,459,052)             1,458,250  
                 
GOVERNMENT & AGENCY OBLIGATIONS 35.25%
U.S. Treasury Notes                
09/30/2023, 0.250%(b)     15,000,000       14,539,453  
12/31/2023, 0.750%(b)     40,000,000       38,781,250  
01/31/2024, 0.875%(b)     13,000,000       12,606,953  
03/15/2025, 1.750%(b)     36,000,000       34,877,813  
01/31/2026, 2.625%(b)     20,000,000       19,775,781  
                 
TOTAL GOVERNMENT & AGENCY OBLIGATIONS  
(Cost $122,868,590)             120,581,250  
                 
    Shares     Value  
SHORT-TERM INVESTMENTS 9.68%          
Money Market Funds 9.68%                
BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (0.296% 7-day yield)     33,104,033       33,104,033  
                 
TOTAL SHORT-TERM INVESTMENTS          
(Cost $33,104,033)             33,104,033  
                 
Total Investments - 166.67%                
(Cost $590,310,230)             570,054,914  
                 
Other Assets in Excess of Liabilities - (66.67%)(k)             (228,036,822 )
                 
NET ASSETS - 100.00%           $ 342,018,092  


See Notes to the Financial Statements.

 

Semi-Annual Report | April 30, 2022 27

 

 

Clough Global Opportunities Fund Statement of Investments

 

  April 30, 2022 (Unaudited)

 

SCHEDULE OF SECURITIES SOLD SHORT   Shares     Value  
COMMON STOCKS (17.30%)                
Communication Services (0.78%)                
Sea, Ltd. - ADR(a)     (32,030 )   $ (2,650,803 )
                 
Consumer Discretionary (4.17%)                
CarMax, Inc.(a)     (82,500 )     (7,076,850 )
QuantumScape Corp.(a)     (233,600 )     (3,489,984 )
Rivian Automotive, Inc. - Class A(a)     (122,300 )     (3,698,352 )
              (14,265,186 )
                 
Financials (2.25%)                
Deutsche Bank AG(a)     (540,400 )     (5,339,152 )
Rocket Cos., Inc.(a)     (172,500 )     (1,526,625 )
UWM Holdings Corp.(a)     (226,507 )     (840,341 )
              (7,706,118 )
                 
Health Care (2.54%)                
ABIOMED, Inc.(a)     (6,100 )     (1,748,138 )
Atara Biotherapeutics, Inc.(a)     (80,700 )     (513,252 )
Bluebird Bio, Inc.(a)     (163,300 )     (592,779 )
Deciphera Pharmaceuticals, Inc.(a)     (138,900 )     (1,405,668 )
Envista Holdings Corp.(a)     (111,800 )     (4,429,516 )
              (8,689,353 )
                 
Industrials (1.26%)                
Snap-on, Inc.(a)     (20,200 )     (4,292,298 )
                 
Information Technology (6.30%)                
International Business Machines Corp.(a)     (52,880 )     (6,991,265 )
MongoDB, Inc.(a)     (4,420 )     (1,568,790 )
Monolithic Power Systems, Inc.(a)     (5,750 )     (2,255,380 )
RingCentral, Inc. - Class A(a)     (31,690 )     (2,688,896 )
United Microelectronics Corp. -                
Sponsored ADR(a)     (825,481 )     (6,570,829 )
Zscaler, Inc.(a)     (7,250 )     (1,469,865 )
              (21,545,025 )
                 
TOTAL COMMON STOCKS                
(Proceeds $71,927,218)             (59,148,783 )
                 
EXCHANGE TRADED FUNDS (7.46%)          
Invesco QQQ ™ Trust Series 1(a)     (32,500 )     (10,180,625 )
iShares® U.S. Medical Devices ETF(a)     (98,400 )     (5,413,968 )
SPDR S&P 500® ETF Trust(a)     (24,100 )     (9,929,200 )

SCHEDULE OF SECURITIES SOLD SHORT (continued)   Shares     Value  
EXCHANGE TRADED FUNDS (continued)          
                 
TOTAL EXCHANGE TRADED FUNDS          
(Proceeds $26,533,721)           $ (25,523,793 )
                 
TOTAL SECURITIES SOLD SHORT          
(Proceeds $98,460,939)           $ (84,672,576 )

 

Investment Abbreviations:

FEDEF - Federal Funds Effective Rate

SOFR - Secured Overnight Financing Rate

 

Libor Rates:

3M US L - 3 Month LIBOR as of April 30, 2022 was 1.36%

1D US SOFR -1 Day SOFR as of April 30, 2022 was 0.28%

 

(a) Non-income producing security.

(b) Pledged security; a portion or all of the security is pledged as collateral for securities sold short, or borrowings. As of April 30, 2022, the aggregate value of those securities was $463,484,584, representing 135.51% of net assets. (See Note 1)

(c) Loaned security; a portion or all of the security is on loan as of April 30, 2022.

(d) Restricted Security (See Note 1).

(e) Security is exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of April 30, 2022, these securities had an aggregate value of $20,168,687 or 5.90% of net assets.

(f) Private Placement; these securities may only be resold in transactions exempt from registration under the Securities Act of 1933. As of April 30, 2022, these securities had an aggregate value of $6,175,706 or 1.81% of 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) Fair valued security; valued by management in accordance with procedures approved by the Board. As of April 30, 2022, these securities had an aggregate value of $6,175,706 or 1.81% of total net assets.

(i) When sector categorization is categorized by industry, no industry exceeds the 25% maximum specified in the Statement of Additional Information.

(j) Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at April 30, 2022. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above.

(k) Includes cash which is being held as collateral for securities sold short.


See Notes to the Financial Statements.

 

28 www.cloughglobal.com

 

 

Clough Global Opportunities Fund Statement of Investments

 

  April 30, 2022 (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.



CALL OPTIONS WRITTEN

 

Underlying Security   Counterparty   Expiration
Date
  Strike
Price
    Contracts     Notional
Amount
    Value  
S&P 500® Index   Morgan Stanley   05/20/2022   $ 3,850     (120)   $ 49,583,160     $ (465,600 )
                          $ 49,583,160     $ (465,600 )

 

See Notes to the Financial Statements.

 

Semi-Annual Report | April 30, 2022 29

 

 

Clough Global Funds Statements of Assets and Liabilities

 

April 30, 2022 (Unaudited)

 

    Clough Global
Dividend and
Income Fund
    Clough Global
Equity Fund
    Clough Global
Opportunities Fund
 
ASSETS:                  
                   
Investments, at value (Cost - see below)*   $ 158,067,673     $ 309,823,108     $ 570,054,914  
Cash     3,262,666       6,087,416       10,545,699  
Deposit with broker for securities sold short     24,233,092       53,233,421       94,888,018  
Deposit with broker for written options     556,546       1,048,147       2,077,248  
Dividends receivable     91,460       127,400       235,842  
Interest receivable     483,275       153,074       757,828  
Receivable for investments sold     2,339,675       11,307,329       17,200,063  
Total Assets     189,034,387       381,779,895       695,759,612  
                         
LIABILITIES:                        
                         
Notes payable and other debt     63,393,800       139,706,715       257,380,829  
Securities sold short, at value (Proceeds $25,289,145, $55,601,205 and $98,460,938)     21,915,506       47,741,154       84,672,576  
Written options, at value (Premiums received $292,095, $584,190 and $1,095,358)     124,160       248,320       465,600  
Payable for investments purchased     1,712,617       4,693,705       10,178,443  
Accrued investment advisory fee     112,848       302,243       609,102  
Accrued administration fee     46,655       107,123       193,576  
Accrued trustees fee     4,846       4,846       4,846  
Other payables and accrued expenses     121,152       177,430       236,548  
Total Liabilities     87,431,584       192,981,536       353,741,520  
Net Assets   $ 101,602,803     $ 188,798,359     $ 342,018,092  
Cost of Investments   $ 160,348,845     $ 318,864,572     $ 590,310,230  
                         
COMPOSITION OF NET ASSETS:                        
                         
Paid-in capital   $ 112,437,861     $ 226,979,927     $ 425,348,642  
Distributable earnings/(Accumulated loss)     (10,835,058 )     (38,181,568 )     (83,330,550 )
Net Assets   $ 101,602,803     $ 188,798,359     $ 342,018,092  
Shares of common stock outstanding of no par value, unlimited shares authorized     11,595,622       18,454,503       41,318,153  
Net asset value per share   $ 8.76     $ 10.23     $ 8.28  
                         
* Securities Loaned, at value   $ 55,719,214     $ 118,131,383     $ 226,732,335  

 

See Notes to the Financial Statements.  

 

30 www.cloughglobal.com

 

 

Clough Global Funds Statements of Operations

 

For the six months ended April 30, 2022 (Unaudited)

 

    Clough Global
Dividend and
Income Fund
    Clough Global
Equity Fund
    Clough Global
Opportunities Fund
 
INVESTMENT INCOME:                        
                         
Dividends (net of foreign withholding taxes of $8,326, $19,366 and $35,603)   $ 1,192,763     $ 1,709,828     $ 2,834,177  
Interest on investment securities     527,564       113,749       714,781  
Interest income - margin account           (846 )     (1,845 )
Hypothecated securities income (See Note 6)     15,420       35,539       139,650  
Total Income     1,735,747       1,858,270       3,686,763  
                         
EXPENSES:                        
                         
Investment advisory fee     681,358       1,830,402       3,736,941  
Administration fee     283,174       656,303       1,201,579  
Interest on loan     401,758       859,805       1,605,079  
Trustees fee     75,566       75,566       75,566  
Dividend expense - short sales     156,599       329,586       603,708  
Other expenses     13,053       28,281       52,467  
Total Expenses     1,611,508       3,779,943       7,275,340  
Net Investment Income/(Loss)     124,239       (1,921,673 )     (3,588,577 )
                         
NET REALIZED GAIN/(LOSS) ON:                        
Investment securities     (2,332,135 )     (24,042,190 )     (48,562,212 )
Futures contracts     197,839       436,894       849,059  
Securities sold short     (799,024 )     (294,060 )     (655,030 )
Written options     492,496       1,210,505       1,974,235  
Total return swap contracts     (3,810,044 )     (6,614,748 )     (12,219,724 )
Foreign currency transactions     (22,962 )     (49,652 )     (93,670 )
Net realized loss     (6,273,830 )     (29,353,251 )     (58,707,342 )
NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION) ON:                        
Investment securities     (17,104,143 )     (48,387,437 )     (89,026,241 )
Futures contracts     (298,941 )     (660,160 )     (1,282,953 )
Securities sold short     3,745,422       8,119,886       14,409,873  
Written options     167,935       335,870       629,758  
Total return swap contracts     (7,476 )     (2,878,383 )     (5,405,035 )
Translation of assets and liabilities denominated in foreign currencies     (589 )     (1,183 )     (2,537 )
Net change in unrealized depreciation     (13,497,792 )     (43,471,407 )     (80,677,135 )
Net Realized and Unrealized Loss     (19,771,622 )     (72,824,658 )     (139,384,477 )
Net Decrease in Net Assets Attributable to Common Shares from Operations   $ (19,647,383 )   $ (74,746,331 )   $ (142,973,054 )
                         
See Notes to the Financial Statements.  

 

Semi-Annual Report | April 30, 2022 31

 

 

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

 

 

    For the
Six Months Ended
April 30, 2022
(Unaudited)
    For the
Year Ended
October 31, 2021
 
COMMON SHAREHOLDERS OPERATIONS:                
                 
Net investment income   $ 124,239     $ 530,346  
Net realized gain/(loss)     (6,273,830 )     17,770,103  
Net change in unrealized appreciation/(depreciation)     (13,497,792 )     1,886,791  
Net Increase/(Decrease) in Net Assets From Operations     (19,647,383 )     20,187,240  
                 
DISTRIBUTIONS TO COMMON SHAREHOLDERS:                
From distributable earnings     (6,380,927 )     (3,855,628 )
Tax return of capital           (7,067,306 )
Net Decrease in Net Assets from Distributions     (6,380,927 )     (10,922,934 )
                 
CAPITAL SHARE TRANSACTIONS                
Proceeds from sales of shares, net of offering costs     2,680,669       29,000,424  
Reinvestment of dividends     479,732       466,418  
Offering costs     (14,693 )     (261,801 )
Net Increase in Net Assets From Share Transactions     3,145,708       29,205,041  
                 
Net Increase/(Decrease) in Net Assets Attributable to Common Shares     (22,882,602 )     38,469,347  
                 
NET ASSETS ATTRIBUABLE TO COMMON SHARES:                
                 
Beginning of period     124,485,405       86,016,058  
End of period   $ 101,602,803     $ 124,485,405  

 

See Notes to the Financial Statements.  

 

32 www.cloughglobal.com

 

 

Clough Global Equity Fund Statements of Changes in Net Assets

 

 

    For the
Six Months Ended
April 30, 2022
(Unaudited)
    For the
Year Ended
October 31, 2021
 
COMMON SHAREHOLDERS OPERATIONS:                
                 
Net investment loss   $ (1,921,673 )   $ (2,825,988 )
Net realized gain/(loss)     (29,353,251 )     45,071,358  
Net change in unrealized appreciation/(depreciation)     (43,471,407 )     18,293,247  
Net Increase/(Decrease) in Net Assets From Operations     (74,746,331 )     60,538,617  
                 
DISTRIBUTIONS TO COMMON SHAREHOLDERS:                
From distributable earnings     (13,206,317 )     (23,035,803 )
Net Decrease in Net Assets from Distributions     (13,206,317 )     (23,035,803 )
                 
CAPITAL SHARE TRANSACTIONS                
Proceeds from sales of shares, net of offering costs     8,363,837       60,403,350  
Reinvestment of dividends     745,355       524,584  
Offering costs     (32,842 )     (298,016 )
Net Increase in Net Assets From Share Transactions     9,076,350       60,629,918  
                 
Net Increase/(Decrease) in Net Assets Attributable to Common Shares     (78,876,298 )     98,132,732  
                 
NET ASSETS ATTRIBUABLE TO COMMON SHARES:                
                 
Beginning of period     267,674,657       169,541,925  
End of period   $ 188,798,359     $ 267,674,657  

 

See Notes to the Financial Statements.  

 

Semi-Annual Report | April 30, 2022 33

 

 

Clough Global Opportunities Fund Statements of Changes in Net Assets

 

 

    For the
Six Months Ended
April 30, 2022
(Unaudited)
    For the
Year Ended
October 31, 2021
 
COMMON SHAREHOLDERS OPERATIONS:                
                 
Net investment loss   $ (3,588,577 )   $ (5,646,834 )
Net realized gain/(loss)     (58,707,342 )     87,176,412  
Net change in unrealized appreciation/(depreciation)     (80,677,135 )     29,652,961  
Net Increase/(Decrease) in Net Assets From Operations     (142,973,054 )     111,182,539  
                 
DISTRIBUTIONS TO COMMON SHAREHOLDERS:                
From distributable earnings     (24,271,544 )     (44,110,259 )
Net Decrease in Net Assets from Distributions     (24,271,544 )     (44,110,259 )
                 
CAPITAL SHARE TRANSACTIONS                
Proceeds from sales of shares, net of offering costs     12,163,252       90,421,624  
Reinvestment of dividends     1,394,268       967,110  
Offering costs     (28,869 )     (488,236 )
Net Increase in Net Assets From Share Transactions     13,528,651       90,900,498  
                 
Net Increase/(Decrease) in Net Assets Attributable to Common Shares     (153,715,947 )     157,972,778  
                 
NET ASSETS ATTRIBUABLE TO COMMON SHARES:                
                 
Beginning of period     495,734,039       337,761,261  
End of period   $ 342,018,092     $ 495,734,039  

 

See Notes to the Financial Statements.  

 

34 www.cloughglobal.com

 

 

Clough Global Funds Statements of Cash Flows

 

For the six months ended April 30, 2022 (Unaudited)

 

    Clough Global
Dividend and
Income Fund
    Clough Global
Equity Fund
    Clough Global
Opportunities Fund
 
CASH FLOWS FROM OPERATING ACTIVITIES:                        
Net decrease in net assets from operations   $ (19,647,383 )   $ (74,746,331 )   $ (142,973,054 )
Adjustments to reconcile net decrease in net assets from operations to net cash provided by operating activities:                        
Purchase of investment securities     (179,350,496 )     (450,810,749 )     (895,815,800 )
Proceeds from disposition of investment securities     188,049,089       476,311,938       930,951,901  
Proceeds from securities sold short transactions     42,137,473       97,793,774       168,699,750  
Cover securities sold short transactions     (28,996,878 )     (74,382,330 )     (130,814,475 )
Premiums received from written options transactions     2,591,304       5,309,749       9,844,794  
Premiums paid on closing written options transactions     (800,674 )     (1,629,779 )     (3,020,587 )
Purchased options transactions     (5,349,271 )     (10,993,326 )     (20,379,380 )
Proceeds from purchased options transactions     2,437,065       4,973,862       9,217,843  
Net purchases of short-term investment securities     (166,980 )     (14,213,539 )     (6,972,607 )
Net realized (gain)/loss on:                        
Investment securities     2,332,135       24,042,190       48,562,212  
Securities sold short     799,024       294,060       655,030  
Written options     (492,496 )     (1,210,505 )     (1,974,235 )
Net change in unrealized (appreciation)/depreciation on:                        
Investment securities     17,104,143       48,387,437       89,026,241  
Securities sold short     (3,745,422 )     (8,119,886 )     (14,409,873 )
Written options     (167,935 )     (335,870 )     (629,758 )
Total return swap contracts     7,476       2,878,383       5,405,035  
Net amortization/(accretion) of premiums/discounts     170,251       2,139       194,087  
(Increase)/Decrease in assets:                        
Dividends receivable     (87,383 )     (119,668 )     (218,183 )
Interest receivable     90,187       (96,443 )     (327,763 )
Variation margin receivable     720       1,590       3,090  
Deferred/Prepaid offering costs     61,037       74,881       160,312  
Increase/(Decrease) in liabilities:                        
Interest due on loan payable     50,012       113,087       206,033  
Payable for total return swap contracts payments     (13,168 )     (106,377 )     (200,361 )
Dividends payable - short sales     (21,307 )     (46,059 )     (87,165 )
Accrued investment advisory fee     (9,932 )     (33,760 )     (85,885 )
Accrued administration fee     (53,798 )     (131,314 )     (248,258 )
Accrued trustees fee     1,796       1,796       1,796  
Other payables and accrued expenses     (67,722 )     (53,994 )     (124,506 )
Net cash provided by operating activities     16,860,867       23,154,956       44,646,234  
                         
CASH FLOWS FROM FINANCING ACTIVITIES:                        
Loan payable     1,800,000       8,000,000       11,500,000  
Proceeds from sales of shares, net of offering costs     2,900,004       8,774,572       13,188,374  
Reinvestment of dividends     479,732       745,355       1,394,268  
Cash distributions paid     (6,380,927 )     (13,206,317 )     (24,271,544 )
Payable due to custodian     (559,196 )     (2,006,870 )     (3,750,493 )
Net cash (used in) provided by financing activities     (1,760,387 )     2,306,740       (1,939,395 )
                         
Net Change in Cash, Restricted Cash and Foreign Rates on Cash     15,100,480       25,461,696       42,706,839  
                         
Cash and restricted cash, beginning of year   $ 13,235,159     $ 35,577,970     $ 66,097,511  
Cash and restricted cash, end of year   $ 28,335,639     $ 61,039,666     $ 108,804,350  

 

See Notes to the Financial Statements.  

 

Semi-Annual Report | April 30, 2022 35

 

 

Clough Global Funds Statements of Cash Flows

 

For the six months ended April 30, 2022 (Unaudited)

 

    Clough Global
Dividend and
Income Fund
    Clough Global
Equity Fund
    Clough Global
Opportunities Fund
 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                        
Non-cash financing activities not included herein consist of reinvestment of distributions of:   $ 479,732     $ 745,355     $ 1,394,268  
Cash paid during the year for interest from loan payable:   $ 351,746     $ 746,718     $ 1,399,046  
                         
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE BEGINNING OF YEAR TO THE STATEMENT OF ASSETS AND LIABILITIES                        
Cash   $ 97,886     $ 773,159     $ 373,636  
Deposit with broker                        
Futures     658,818       1,269,820       2,507,576  
Securities sold short     10,183,606       18,025,923       33,994,780  
Total return swaps     2,294,849       15,509,068       29,221,519  
                         
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AT THE END OF YEAR TO THE STATEMENT OF ASSETS AND LIABILITIES                        
Cash   $ 3,262,666     $ 6,087,416     $ 10,545,699  
Deposit with broker                        
Securities sold short     24,233,092       53,233,421       94,888,018  
Written options     556,546       1,048,147       2,077,248  

 

See Notes to the Financial Statements.  

 

36 www.cloughglobal.com

 

 

Page Intentionally Left Blank

 

 

Clough Global Dividend and Income Fund Financial Highlights

 

For a share outstanding throughout the years indicated

 

    For the
Six Months Ended
April 30, 2022
(Unaudited)
    For the
Year Ended
October 31, 2021
    For the
Year Ended
October 31, 2020
    For the
Year Ended
October 31, 2019
 
PER COMMON SHARE OPERATING PERFORMANCE:                                
Net asset value - beginning of period   $ 11.02     $ 10.23     $ 12.21     $ 12.54  
Income from investment operations:                                
Net investment income/(loss)*     0.01       0.06       0.12       0.16  
Net realized and unrealized gain/(loss) on investments     (1.71 )     2.28       (0.89 )     1.08