UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number: 811-21712

 

CLOUGH GLOBAL EQUITY FUND

(Exact name of registrant as specified in charter)

 

1290 Broadway, Suite 1100, Denver, Colorado 80203

(Address of principal executive offices) (Zip code)

 

Karen S. Gilomen, Secretary

Clough Global Equity Fund

1290 Broadway, Suite 1100

Denver, Colorado 80203

(Name and address of agent for service)

 

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

 

Date of fiscal year end: October 31

 

Date of reporting period: January 31, 2018

 

 

 

Item 1 – Schedule of Investments.

 

The Schedule of Investments is included herewith.

 

Clough Global Dividend and Income Fund
STATEMENT OF INVESTMENTS
January 31, 2018 (Unaudited)

 

   Shares   Value 
COMMON STOCKS 66.40%
Consumer Discretionary 7.09%
BYD Co., Ltd. - Class H   150,300   $1,415,070 
DR Horton, Inc.(a)(b)   11,926    584,970 
Lennar Corp. - Class A(a)(b)   7,700    482,482 
Liberty Ventures - Series A(a)(c)   31,043    1,829,364 
Man Wah Holdings, Ltd.   517,200    550,083 
Panasonic Corp.   93,700    1,389,578 
PulteGroup, Inc.(a)(b)   13,100    416,973 
Service Corp. International(a)(b)   14,600    583,562 
         7,252,082 
           
Consumer Staples 0.65%          
Japan Tobacco, Inc.   20,000    661,720 
           
Energy 7.03%          
Baker Hughes, a GE Co.(a)(b)   73,700    2,369,455 
Fairway Energy LP(c)(d)(e)(f)(g)   130,700    684,214 
Halliburton Co.(a)   16,500    886,050 
Kinder Morgan, Inc.(a)(b)   134,800    2,423,704 
Schlumberger, Ltd.(a)   11,200    824,096 
         7,187,519 
           
Financials 33.69%          
Ares Capital Corp.(a)   218,800    3,489,860 
Bank of America Corp.(a)(b)   131,491    4,207,712 
Blackstone Mortgage Trust, Inc. - Class A(a)   100,300    3,109,300 
Citigroup, Inc.(a)(b)   48,230    3,785,090 
Community Healthcare Trust, Inc.(a)   108,100    2,879,784 
Country Garden Holdings Co., Ltd.   393,000    845,016 
First Republic Bank(a)(b)   9,400    841,770 
Global Medical REIT, Inc.(a)   77,000    617,540 
Golub Capital BDC, Inc.(a)   89,700    1,629,849 
JPMorgan Chase & Co.(a)(b)   29,200    3,377,564 
Ladder Capital Corp.(a)   49,218    712,185 
Longfor Properties Co., Ltd.   260,500    850,834 
Ping An Insurance Group Co. of China, Ltd. - Class H   73,000    864,598 
Postal Savings Bank Of China Co., Ltd. - Class H   1,299,000    868,474 
Solar Capital, Ltd.(a)   82,500    1,732,500 
Starwood Property Trust, Inc.(a)   192,800    3,931,192 
TPG Specialty Lending, Inc.(a)   37,000    710,770 
         34,454,038 
           
Health Care 3.67%          
Bristol-Myers Squibb Co.(a)(b)   14,187    888,106 
Pfizer, Inc.(a)(b)   77,400    2,866,896 
         3,755,002 
   Shares   Value 
Industrials 1.73%
Airbus SE   15,431   $1,772,149 
           
Information Technology 12.54%          
Broadcom, Ltd.(a)(b)   3,191    791,464 

Cognizant Technology Solutions Corp. -

Class A(a)(b)

   7,400    577,052 
Equinix, Inc.(a)   1,880    855,757 
Lam Research Corp.(a)(b)   7,680    1,470,874 
Microchip Technology, Inc.(a)   18,000    1,713,960 
Microsoft Corp.(a)(b)   47,000    4,465,470 
Nintendo Co., Ltd.   1,206    529,924 
Samsung Electronics Co., Ltd.   556    1,299,078 
Ulvac, Inc.   5,900    393,982 
ViaSat, Inc.(a)(b)(c)   9,549    722,095 
         12,819,656 
TOTAL COMMON STOCKS          
(Cost $60,592,849)        67,902,166 
           
CLOSED-END FUNDS 2.22%          
Alpine Total Dynamic Dividend Fund(a)   59,800    586,638 
Gabelli Equity Trust, Inc.(a)   65,600    426,400 
KKR Income Opportunities Fund(a)   26,600    424,270 
Liberty All-Star Equity Fund(a)   63,200    413,328 
Wells Fargo Multi-Sector Income Fund(a)   32,500    424,450 
         2,275,086 
TOTAL CLOSED-END FUNDS          
(Cost $2,321,883)        2,275,086 
           
PARTICIPATION NOTES 1.78%          
Consumer Discretionary 1.78%          
Midea Group Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 05/13/2019(d)   191,400    1,819,931 
           
TOTAL PARTICIPATION NOTES          
(Cost $1,157,778)        1,819,931 
           
PREFERRED STOCKS 7.13%          
Annaly Capital Management, Inc.          
Series G, 6.500%(a)   30,000    738,300 
Series E, 7.625%(a)   47,542    1,197,108 
Ares Management LP          
Series A, 7.000%(a)   35,000    908,250 
First Republic Bank          
Series D, 5.500%(a)(b)   35,000    877,100 
Global Medical REIT, Inc.          
Series A, 7.500%   10,900    266,396 
MTGE Investment Corp.          
Series A, 8.125%(a)   10,640    271,320 

 

 

   Shares   Value 
PREFERRED STOCKS (continued)
PennyMac Mortgage Investment Trust          
Series A, 3M US L + 5.831%(a)(b)(h)   22,000   $547,800 
Series B, 3M US L + 5.99%(a)(b)(h)   10,000    248,500 
Summit Hotel Properties, Inc.          
Series E, 6.250%(a)   40,000    1,002,800 
Two Harbors Investment Corp.          
Series A, 3M US L + 5.66%(a)(h)   28,500    744,990 
Series C, 3M US L + 5.011%(a)(h)   20,000    485,400 
         7,287,964 
TOTAL PREFERRED STOCKS          
(Cost $7,165,296)        7,287,964 

 

Description and  Principal     
Maturity Date  Amount   Value 
CORPORATE BONDS 36.86%
American Tower Corp.        
06/15/2023, 3.000%  $500,000    493,944 
Bank of America Corp.          
10/21/2022, 2.503%(a)(b)   1,000,000    977,718 
BMW US Capital LLC          
09/15/2021, 1.850%   500,000    483,474 
09/15/2021, 1.850%(a)(b)(d)   1,000,000    966,949 
BP Capital Markets PLC          
05/10/2019, 2.237%(a)(b)   1,000,000    999,392 
Branch Banking & Trust Co.          
06/01/2020, 2.250%(a)   500,000    496,255 
Citigroup, Inc.          
04/25/2022, 2.750%(a)   1,000,000    987,477 
Citizens Bank National Association          
03/14/2019, 2.500%(a)(b)   1,000,000    1,000,833 
Citizens Financial Group, Inc.          
09/28/2022, 4.150%(a)(d)   1,325,000    1,353,562 
DR Horton, Inc.          
12/01/2020, 2.550%(a)   1,000,000    994,534 
EI du Pont de Nemours & Co.          
05/01/2020, 2.200%(a)   650,000    646,061 
First Republic Bank          
06/17/2019, 2.375%(a)(b)   1,000,000    996,360 
Ford Motor Credit Co. LLC          
05/04/2023, 3.096%   1,000,000    976,418 
General Motors Financial Co., Inc.          
04/10/2018, 2.400%(a)(b)   1,000,000    1,001,117 
Goldman Sachs Group, Inc.          
10/31/2022, 3M US L + 0.821%(a)(h)   1,000,000    987,573 
Hercules Capital, Inc.          
10/23/2022, 4.625%(a)(b)   1,000,000    1,013,373 
Jackson National Life Global Funding          
04/29/2021, 2.250%(a)(d)   1,000,000    980,764 
Jersey Central Power & Light Co.          
06/15/2018, 4.800%(a)(b)   1,000,000    1,009,403 

 

Description and  Principal     
Maturity Date  Amount   Value 
CORPORATE BONDS (continued)
JPMorgan Chase & Co.        
09/23/2022, 3.250%(a)(b)  $1,000,000   $1,010,374 
Lennar Corp.          
12/01/2018, 4.125%(a)   1,000,000    1,012,500 
01/15/2022, 4.125%(a)   1,000,000    1,013,750 
Main Street Capital Corp.          
12/01/2019, 4.500%(a)(b)   1,000,000    1,009,621 
12/01/2022, 4.500%(a)   500,000    501,007 
Manufacturers & Traders Trust Co.          
02/06/2020, 2.100%(a)(b)   1,000,000    991,896 
05/18/2022, 2.500%(a)(b)   1,000,000    984,003 
Mitsubishi UFJ Trust & Banking Corp.          
10/16/2019, 2.450%(a)(d)   500,000    498,774 
Monsanto Co.          
07/15/2022, 2.200%   1,000,000    960,185 
Morgan Stanley          
05/19/2022, 2.750%(a)(b)   1,000,000    986,101 
Penske Truck Leasing Co. LP / PTL Finance Corp.          
03/14/2023, 2.700%(d)   1,000,000    974,126 
Philip Morris International, Inc.          
08/22/2022, 2.500%(a)   750,000    734,508 
PNC Bank National Association          
11/05/2020, 2.450%(a)(b)   650,000    647,031 
Raytheon Co.          
10/15/2020, 3.125%(a)(b)   1,000,000    1,015,784 
Solar Capital, Ltd.          
01/20/2023, 4.500%(a)   500,000    489,084 
Tencent Holdings, Ltd.          
05/02/2019, 3.375%(a)   1,000,000    1,009,889 
01/19/2023, 2.985%(a)(d)   1,000,000    990,071 
Volkswagen Group of America Finance LLC          
11/20/2019, 2.450%(a)(b)(d)   1,000,000    996,766 
Voya Financial, Inc.          
02/15/2018, 2.900%(a)   457,000    457,153 
Wells Fargo & Co.          
Series MTN, 07/22/2022, 2.625%(a)(b)   1,000,000    983,638 
Series K, Perpetual Maturity,  3M US L + 3.77%(a)(b)(h)(i)   1,057,000    1,068,257 
Welltower, Inc.          
04/01/2019, 4.125%(a)(b)   1,000,000    1,015,163 
Xcel Energy, Inc.          
03/15/2021, 2.400%(a)(b)   2,000,000    1,978,373 
           
TOTAL CORPORATE BONDS          
(Cost $38,057,948)        37,693,261 
           
ASSET/MORTGAGE BACKED SECURITIES 13.11%      
Federal Home Loan Mortgage Corp. - REMICS          
Series 2017-4707, Class AD, 07/15/2047, 2.500%(a)   970,599    955,352 

 

 

Description and  Principal     
Maturity Date  Amount   Value 
ASSET/MORTGAGE BACKED SECURITIES (continued)
Federal National Mortgage Association - REMICS        
Series 2017-16, Class NA, 03/25/2047, 3.000%  $851,860   $831,125 
Series 2017-60, Class C, 08/25/2047, 3.500%   593,019    589,425 
Government National Mortgage Association - REMICS          
Series 2013-118, Class AD, 06/16/2036, 1.550%(a)   875,970    859,110 
Series 2012-83, Class A, 07/16/2041, 1.368%(a)   757,486    721,721 
Series 2014-172, Class AC, 09/16/2041, 1.900%   490,451    482,337 
Series 2011-47, Class C, 02/16/2042, 3.844%(h)   523,337    529,984 
Series 2013-68, Class AC, 02/16/2046, 1.300%(a)   750,623    710,533 
Series 2017-103, Class HG, 01/20/2047, 2.500%(a)   977,904    946,237 
Series 2015-130, Class AB, 08/16/2047, 2.550%(a)   762,582    751,653 
Series 2017-128, Class AB, 03/16/2049, 2.250%(a)   992,286    958,492 
Series 2016-92, Class AB, 04/16/2050, 2.100%   475,484    462,721 
Series 2014-166, Class PJ, 07/16/2051, 2.500%(a)   638,464    624,894 
Series 2012-111, Class A, 09/16/2052, 2.387%(a)   899,965    888,915 
Series 2012-125, Class AB, 02/16/2053, 2.111%(a)(h)   632,060    598,985 
Series 2013-101, Class AD, 12/16/2053, 2.623%(a)(h)   735,323    718,900 
SBA Small Business Investment Companies          
Series 2013-10B, Class 1, 09/10/2023, 3.644%   1,140,907    1,163,194 
Series 2016-10A, Class 1, 03/10/2026, 2.507%   489,831    485,479 
United States Small Business Administration          
Series 2008-20L, Class 1, 12/01/2028, 6.220%   118,437    128,790 
           
TOTAL ASSET/MORTGAGE BACKED SECURITIES      
(Cost $13,702,785)        13,407,847 
           
GOVERNMENT & AGENCY OBLIGATIONS 8.14%      
U.S. Treasury Bonds          
11/15/2026, 6.500%(a)   1,600,000    2,076,750 
08/15/2029, 6.125%(a)   1,250,000    1,669,556 
05/15/2030, 6.250%(a)   1,000,000    1,366,269 
02/15/2038, 4.375%(a)   1,000,000    1,234,492 
U.S. Treasury Notes          
06/30/2019, 1.625%(a)   1,000,000    994,199 
12/31/2019, 1.625%(a)   1,000,000    990,391 

 

   Value 
TOTAL GOVERNMENT & AGENCY OBLIGATIONS
(Cost $8,640,263)  $8,331,657 

 

   Shares   Value 
SHORT-TERM INVESTMENTS 7.81%
Money Market Fund 7.81%
BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (1.209% 7-day yield)   7,983,805    7,983,805 
           
TOTAL SHORT-TERM INVESTMENTS          
(Cost $7,983,805)        7,983,805 
           
Total Investments - 143.45%          
(Cost $139,622,607)        146,701,717 
           
Liabilities in Excess of Other Assets - (43.45%)(j)        (44,433,555)
           
NET ASSETS - 100.00%       $102,268,162 

 

SCHEDULE OF SECURITIES SOLD SHORT (c)  Shares   Value 
COMMON STOCKS (9.85%)
Financials (1.27%)
Deutsche Bank AG   (30,600)   (561,204)
Santander Consumer USA Holdings, Inc.   (42,500)   (733,125)
         (1,294,329)
Health Care (1.96%)          
AmerisourceBergen Corp.   (9,800)   (976,766)
McKesson Corp.   (6,100)   (1,030,168)
         (2,006,934)
Information Technology (5.78%)          
AU Optronics Corp. - Sponsored ADR   (68,500)   (328,115)
Cirrus Logic, Inc.   (8,300)   (411,431)
Ingenico Group SA   (5,223)   (594,639)
International Business Machines Corp.   (12,650)   (2,070,805)
LINE Corp. - Sponsored ADR   (13,200)   (585,948)
Manhattan Associates, Inc.   (28,200)   (1,489,524)
Skyworks Solutions, Inc.   (4,400)   (427,724)
         (5,908,186)
Materials (0.84%)          
Albemarle Corp.   (3,900)   (435,201)
FMC Corp.   (4,700)   (429,251)
         (864,452)

 

 

SCHEDULE OF SECURITIES SOLD SHORT (c) (continued)  Shares   Value 
TOTAL COMMON STOCKS
(Proceeds $8,990,493)       $(10,073,901)
           
EXCHANGE TRADED FUNDS (0.61%)          
United States Natural Gas Fund LP   (24,650)   (618,222)
           
TOTAL EXCHANGE TRADED FUNDS          
(Proceeds $742,663)        (618,222)
           
TOTAL SECURITIES SOLD SHORT          
(Proceeds $9,733,156)       $(10,692,123)

 

Investment Abbreviations:

1D FEDEF - Federal Funds Effective Rate (Daily)

LIBOR - London Interbank Offered Rate

 

Libor Rates:

3M US L - 3 Month LIBOR as of January 31, 2018 was 1.78%

  

(a)Pledged security; a portion or all of the security is pledged as collateral for securities sold short or borrowings. As of January 31, 2018, the aggregate value of those securities was $111,728,833, representing 109.25% of net assets. (See Note 1 and Note 2).
(b)Loaned security; a portion or all of the security is on loan as of January 31, 2018.
(c)Non-income producing security.
(d)Security exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of January 31, 2018, these securities had an aggregate value of $9,265,157 or 9.06% of net assets.
(e)Private Placement; these securities may only be resold in transactions exempt from registration under the Securities Act of 1933. As of January 31, 2018, these securities had a total value of $684,214 or 0.67% of net assets and have been deemed illiquid by the Adviser based on procedures approved by the Board of Trustees. (See Note 1).
(f)Fair valued security; valued by management in accordance with procedures approved by the Fund's Board of Trustees. As of January 31, 2018, these securities had an aggregate market value of $684,214 or 0.67% of total net assets.
(g)As a result of the use of significant unobservable inputs to determine fair value, these investments have been classified as Level 3 assets. See also footnote 1 to the financial statements for additional information.
(h)Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at January 31, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above.
(i)This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(j)Includes cash which is being held as collateral for total return swap contracts and securities sold short.

 

 

TOTAL RETURN SWAP CONTRACTS        
         
  Reference  Notional  Floating Rate Floating Termination      Net Unrealized 
Counter Party Entity/Obligation  Amount  Paid by the Fund Rate Index Date  Value   Appreciation 
Credit Suisse Hero MotoCorp, Ltd.  $443,404  143 bps + 1M LIBOR 1 M LIBOR 12/31/2020  $528,903   $85,499 
Morgan Stanley Hero MotoCorp, Ltd.   699,923  225 bps + 1D FEDEF 1 D FEDEF 07/12/2018   795,356    95,433 
Credit Suisse Housing Development Finance Corp.   272,383  125 bps + 1M LIBOR 1 M LIBOR 12/31/2020   430,576    158,193 
Morgan Stanley Housing Development Finance Corp.   2,020,030  225 bps + 1D FEDEF 1 D FEDEF 07/12/2018   2,884,019    863,989 
Credit Suisse Indiabulls Housing Finance   723,607  187 bps + 1M LIBOR 1 M LIBOR 12/31/2020   1,266,608    543,001 
Morgan Stanley ITC, Ltd.   810,574  225 bps + 1D FEDEF 1 D FEDEF 07/12/2018   883,935    73,361 
Credit Suisse Larsen & Toubro, Ltd.   1,388,142  217 bps + 1M LIBOR 1 M LIBOR 12/31/2020   2,600,683    1,212,541 
Morgan Stanley Larsen & Toubro, Ltd.   568,927  225 bps + 1D FEDEF 1 D FEDEF 07/12/2018   814,796    245,869 
Morgan Stanley United Microelectronics Corp.   (326,334) 1D FEDEF - 75 bps 1 D FEDEF 07/12/2018   (302,988)   23,346 
     $6,600,656         $9,901,888   $3,301,232 

 

  Reference  Notional  Floating Rate Floating Termination      Net Unrealized 
Counter Party Entity/Obligation  Amount  Paid by the Fund Rate Index Date  Value   Depreciation 
Credit Suisse Bharti Airtel, Ltd.  $895,865  125 bps + 1M LIBOR 1 M LIBOR 12/31/2020  $794,989   $(100,876)
Morgan Stanley Mahindra & Mahindra, Ltd.   1,770,270  225 bps + 1D FEDEF 1 D FEDEF 07/12/2018   1,748,097    (22,173)
Morgan Stanley Sociedad Quimica   (423,996) 1 D FEDEF - 75bps 1 D FEDEF 02/03/2020   (432,547)   (8,551)
     $2,242,139         $2,110,539   $(131,600)
     $8,842,795         $12,012,427   $3,169,632 

 

 

 

 
Clough Global Equity Fund
STATEMENT OF INVESTMENTS
January 31, 2018 (Unaudited)
 
   Shares   Value 
COMMON STOCKS 108.63%
Consumer Discretionary 19.95%
Amazon.com, Inc.(a)(b)(c)   3,300   $4,787,937 
BYD Co., Ltd. - Class H   242,100    2,279,364 
Carvana Co.(a)(b)   156,700    2,991,403 
DR Horton, Inc.(b)   25,621    1,256,710 
JD.com, Inc. - ADR(a)(b)(c)   52,600    2,589,498 
Lennar Corp. - Class A(b)(c)   15,300    958,698 
Liberty Broadband Corp. - Class C(a)(b)(c)   39,666    3,790,086 
Liberty Ventures - Series A(a)(b)(c)   114,721    6,760,509 
Man Wah Holdings, Ltd.   834,400    887,450 
Panasonic Corp.   152,900    2,267,519 
PulteGroup, Inc.(b)(c)   27,600    878,508 
Service Corp. International(b)(c)   23,000    919,310 
TRI Pointe Group, Inc.(a)(b)(c)   36,500    595,315 
Wayfair, Inc. - Class A(a)(b)(c)   13,100    1,205,331 
zooplus AG(a)   8,204    1,690,823 
         33,858,461 
           
Consumer Staples 0.80%          
Japan Tobacco, Inc.   32,400    1,071,987 
Orion Corp.(a)   2,612    286,186 
         1,358,173 
           
Energy 6.84%          
Baker Hughes, a GE Co.(b)   119,300    3,835,495 
Fairway Energy LP(a)(d)(e)(f)(g)   217,600    1,139,136 
Halliburton Co.(b)   26,600    1,428,420 
Kinder Morgan, Inc.(b)   216,400    3,890,872 
Schlumberger, Ltd.(b)   18,000    1,324,440 
         11,618,363 
           
Financials 36.43%          
Arbor Realty Trust, Inc.(b)   172,300    1,404,245 
Ares Capital Corp.(b)   405,800    6,472,510 
Bank of America Corp.(b)(c)   222,205    7,110,560 
Blackstone Mortgage Trust, Inc. - Class A(b)   238,400    7,390,400 
Citigroup, Inc.(b)(c)   80,519    6,319,131 
Community Healthcare Trust, Inc.(b)   45,800    1,220,112 
Country Garden Holdings Co., Ltd.   643,000    1,382,557 
First Republic Bank(b)   15,100    1,352,205 
Global Medical REIT, Inc.(b)   121,000    970,420 
Golub Capital BDC, Inc.(b)   185,809    3,376,149 
JPMorgan Chase & Co.(b)(c)   48,100    5,563,727 
Ladder Capital Corp.(b)   154,979    2,242,546 
Longfor Properties Co., Ltd.   426,000    1,391,383 
Physicians Realty Trust(b)   136,000    2,216,800 
Ping An Insurance Group Co. of China, Ltd. - Class H   118,700    1,405,861 
 
   Shares   Value 
Financials (continued)
Postal Savings Bank Of China Co., Ltd. - Class H   1,054,000   $704,674 
Solar Capital, Ltd.(b)   99,100    2,081,100 
Starwood Property Trust, Inc.(b)   350,500    7,146,695 
TCG BDC, Inc.(b)   62,500    1,121,875 
TPG Specialty Lending, Inc.(b)   49,500    950,895 
         61,823,845 
           
Health Care 16.85%          
Align Technology, Inc.(a)(b)(c)   4,450    1,165,900 
Apellis Pharmaceuticals, Inc.(a)(b)   87,900    1,459,140 
Apellis Pharmaceuticals, Inc. - Private Placement(a)(d)(e)(f)   56,297    909,348 
ARMO Biosciences, Inc.(a)   14,600    446,760 
BioMarin Pharmaceutical, Inc.(a)(b)(c)   7,400    667,702 
Boston Scientific Corp.(a)(b)(c)   54,000    1,509,840 
Bristol-Myers Squibb Co.(b)(c)   29,116    1,822,662 
Cardiome Pharma Corp.(a)(b)(c)   418,200    635,664 
Celgene Corp.(a)(b)(c)   13,200    1,335,312 
Centrexion Therapeutics(a)(d)(e)(f)(g)   416,666    749,999 
Clovis Oncology, Inc.(a)(b)   17,100    1,034,550 
CRISPR Therapeutics AG(a)(b)   106,667    4,189,880 
Express Scripts Holding Co.(a)(b)(c)   17,800    1,409,404 
Galapagos NV - Sponsored ADR(a)(b)   9,800    1,158,556 
GW Pharmaceuticals PLC - ADR(a)(b)   7,900    1,091,227 
Intra-Cellular Therapies, Inc.(a)(b)   95,800    1,630,516 
Pfizer, Inc.(b)(c)   46,900    1,737,176 
Sienna Biopharmaceuticals, Inc.(a)(b)   126,075    2,218,920 
Teladoc, Inc.(a)(b)   50,400    1,884,960 
Vertex Pharmaceuticals, Inc.(a)(b)(c)   9,250    1,543,547 
         28,601,063 
           
Industrials 1.68%          
Airbus SE   24,839    2,852,596 
           
Information Technology 26.08%          
58.com, Inc. - ADR(a)   16,300    1,302,044 
Alibaba Group Holding, Ltd. - Sponsored ADR(a)(b)(c)   24,720    5,050,049 
ams AG   21,550    1,988,411 
Baozun, Inc. - Sponsored ADR(a)(b)(c)   50,300    1,959,185 
Broadcom, Ltd.(b)(c)   8,579    2,127,849 
Cognizant Technology Solutions Corp. - Class A(b)(c)   19,000    1,481,620 
Equinix, Inc.(b)   2,940    1,338,259 
Facebook, Inc. - Class A(a)(b)(c)   15,290    2,857,548 
GoDaddy, Inc. - Class A(a)(b)   27,400    1,513,302 

 

 

 

 
   Shares   Value 
Information Technology (continued)
Lam Research Corp.(b)(c)   5,910   $1,131,883 
LogMeIn, Inc.(b)(c)   27,300    3,434,340 
Microchip Technology, Inc.(b)(c)   28,500    2,713,770 
Microsoft Corp.(b)(c)   58,500    5,558,085 
Nintendo Co., Ltd.   3,819    1,678,093 
Orbotech, Ltd.(a)(b)   26,900    1,432,694 
Salesforce.com, Inc.(a)(b)(c)   13,600    1,549,176 
Samsung Electronics Co., Ltd.   913    2,133,198 
ServiceNow, Inc.(a)(b)   6,800    1,012,316 
Ulvac, Inc.   8,800    587,634 
ViaSat, Inc.(a)(b)(c)   45,042    3,406,076 
         44,255,532 
           
TOTAL COMMON STOCKS          
(Cost $161,932,406)        184,368,033 
           
CLOSED-END FUNDS 5.29%          
Alpine Total Dynamic Dividend Fund   95,668    938,503 
Altaba, Inc.(a)(b)(c)   66,300    5,296,044 
Gabelli Equity Trust, Inc.   106,400    691,600 
KKR Income Opportunities Fund   43,100    687,445 
Liberty All-Star Equity Fund   102,400    669,696 
Wells Fargo Multi-Sector Income Fund(b)   52,700    688,262 
         8,971,550 
           
TOTAL CLOSED-END FUNDS          
(Cost $8,324,420)        8,971,550 
           
PARTICIPATION NOTES 1.73%          
Consumer Discretionary 1.73%          
Midea Group Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 05/13/2019(d)   309,600    2,943,838 
           
           
TOTAL PARTICIPATION NOTES          
(Cost $1,872,550)        2,943,838 
           
PREFERRED STOCKS 5.69%          
Annaly Capital Management, Inc.          
Series G, 6.500%(b)   35,000    861,350 
Series E, 7.625%(b)   104,431    2,629,573 
Ares Management LP          
Series A, 7.000%(b)   71,000    1,842,450 
Global Medical REIT, Inc.          
Series A, 7.500%(b)   17,700    432,588 
PennyMac Mortgage Investment Trust          
Series A, 3M US L + 5.831%(b)(h)   28,000    697,200 
Series B, 3M US L + 5.99%(b)(h)   10,000    248,500 
Summit Hotel Properties, Inc.          
Series E, 6.250%(b)   40,000    1,002,800 
 
   Shares   Value 
PREFERRED STOCKS (continued)
Two Harbors Investment Corp.
Series A, 3M US L + 5.66%(b)(h)   51,000   $1,333,140 
Series C, 3M US L + 5.011%(b)(h)   25,000    606,750 
         9,654,351 
           
TOTAL PREFERRED STOCKS          
(Cost $9,408,514)        9,654,351 
           
Description and   Principal      
Maturity Date   Amount     Value 
CORPORATE BONDS 1.19%          
Wells Fargo & Co.          
Series K, Perpetual Maturity, 3M US L + 3.77%(b)(h)(i)   2,000,000    2,021,300 
           
TOTAL CORPORATE BONDS          
(Cost $2,029,000)        2,021,300 
           
GOVERNMENT & AGENCY OBLIGATIONS 3.19%  
U.S. Treasury Bonds          
11/15/2026, 6.500%(b)   1,600,000    2,076,750 
08/15/2029, 6.125%(b)   2,500,000    3,339,111 
           
TOTAL GOVERNMENT & AGENCY OBLIGATIONS  
(Cost $5,795,017)        5,415,861 
           
    Shares/Principal Amount     Value 
SHORT-TERM INVESTMENTS 16.35%       
Money Market Fund 13.41%          
BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (1.209% 7-day yield)   22,766,159    22,766,159 
           
U.S. Treasury Bills 2.94%          
U.S. Treasury Bill          
06/07/2018, 0.982%(b)(j)  $5,000,000    4,974,100 
           
TOTAL SHORT-TERM INVESTMENTS     
(Cost $27,741,484)        27,740,259 
           
Total Investments - 142.07%          
(Cost $217,103,391)        241,115,192 
           
Liabilities in Excess of Other Assets - (42.07%)(k)    (71,400,132)
           
NET ASSETS - 100.00%       $169,715,060 

 

 

 

 
SCHEDULE OF SECURITIES SOLD SHORT (a)  Shares   Value 
COMMON STOCKS (12.26%)
Consumer Staples (1.17%)
Walgreens Boots Alliance, Inc.   (26,300)  $(1,979,338)
           
Financials (1.23%)          
Deutsche Bank AG   (49,200)   (902,328)
Santander Consumer USA Holdings, Inc.   (69,300)   (1,195,425)
         (2,097,753)
           
Health Care (2.33%)          
AmerisourceBergen Corp.   (15,400)   (1,534,918)
Editas Medicine, Inc.   (21,700)   (792,267)
McKesson Corp.   (9,600)   (1,621,248)
         (3,948,433)
           
Information Technology (6.70%)          
AU Optronics Corp. - Sponsored ADR   (145,200)   (695,508)
Cirrus Logic, Inc.   (13,600)   (674,152)
Gogo, Inc.   (128,100)   (1,234,884)
Ingenico Group SA   (8,522)   (970,231)
International Business Machines Corp.   (18,250)   (2,987,525)
Knowles Corp.   (45,600)   (694,944)
LINE Corp. - Sponsored ADR   (21,600)   (958,824)
Manhattan Associates, Inc.   (46,400)   (2,450,848)
Skyworks Solutions, Inc.   (7,300)   (709,633)
         (11,376,549)
           
Materials (0.83%)          
Albemarle Corp.   (6,300)   (703,017)
FMC Corp.   (7,700)   (703,241)
         (1,406,258)
           
TOTAL COMMON STOCKS          
(Proceeds $18,871,359)        (20,808,331)
           
EXCHANGE TRADED FUNDS (0.59%)          
United States Natural Gas Fund LP   (39,325)   (986,271)
           
TOTAL EXCHANGE TRADED FUNDS          
(Proceeds $1,184,786)        (986,271)
           
TOTAL SECURITIES SOLD SHORT          
(Proceeds $20,056,145)       $(21,794,602)

 

 

Investment Abbreviations:

1D FEDEF - Federal Funds Effective Rate (Daily)

LIBOR - London Interbank Offered Rate

 

Libor Rates:

3M US L - 3 Month LIBOR as of January 31, 2018 was 1.78%

 

(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 January 31, 2018, the aggregate value of those securities was $170,522,379, representing 100.48% of net assets. (See Note 1 and Note 2).
(c)Loaned security; a portion or all of the security is on loan as of January 31, 2018.
(d)Security exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of January 31, 2018, these securities had an aggregate value of $5,742,321 or 3.38% of net assets.
(e)Private Placement; these securities may only be resold in transactions exempt from registration under the Securities Act of 1933. As of January 31, 2018, these securities had a total value of $2,798,483 or 1.65% of net assets and have been deemed illiquid by the Adviser based on procedures approved by the Board of Trustees. (See Note 1).
(f)Fair valued security; valued by management in accordance with procedures approved by the Fund's Board of Trustees. As of January 31, 2018, these securities had an aggregate market value of $2,798,483 or 1.65% of total net assets.
(g)As a result of the use of significant unobservable inputs to determine fair value, these investments have been classified as Level 3 assets. See also footnote 1 to the financial statements for additional information.
(h)Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at January 31, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above.
(i)This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(j)Rate shown represents the bond equivalent yield to maturity at date of purchase.
(k)Includes cash which is being held as collateral for total return swap contracts and securities sold short.

 

 

 

TOTAL RETURN SWAP CONTRACTS        
         
   Reference  Notional   Floating Rate  Floating  Termination       Net Unrealized 
Counter Party  Entity/Obligation  Amount   Paid by the Fund  Rate Index  Date   Value   Appreciation 
Credit Suisse  Hero MotoCorp, Ltd.  $2,348,400   143 bps + 1M LIBOR  1 M LIBOR   12/31/2020   $2,842,133   $493,733 
Morgan Stanley  Hero MotoCorp, Ltd.   1,115,874   225 bps + 1D FEDEF  1 D FEDEF   07/12/2018    1,268,020    152,146 
Credit Suisse  Housing Development Finance Corp.   765,588   125 bps + 1M LIBOR  1 M LIBOR   12/31/2020    1,210,220    444,632 
Morgan Stanley  Housing Development Finance Corp.   3,254,547   225 bps + 1D FEDEF  1 D FEDEF   07/12/2018    4,646,554    1,392,007 
Credit Suisse  Indiabulls Housing Finance   1,210,969   187 bps + 1M LIBOR  1 M LIBOR   12/31/2020    2,123,872    912,903 
Morgan Stanley  ITC, Ltd.   1,451,310   225 bps + 1D FEDEF  1 D FEDEF   07/12/2018    1,585,552    134,242 
Credit Suisse  Larsen & Toubro, Ltd.   2,141,517   217 bps + 1M LIBOR  1 M LIBOR   12/31/2020    4,050,283    1,908,766 
Morgan Stanley  Larsen & Toubro, Ltd.   906,980   225 bps + 1D FEDEF  1 D FEDEF   07/12/2018    1,298,961    391,981 
Credit Suisse  Mahindra & Mahindra, Ltd.   1,374,538   125 bps + 1M LIBOR  1 M LIBOR   12/31/2020    1,526,010    151,472 
Morgan Stanley  United Microelectronics Corp.   (533,446)  1D FEDEF - 75 bps  1 D FEDEF   07/12/2018    (495,282)   38,164 
      $14,036,277              $20,056,323   $6,020,046 
                              
   Reference   Notional   Floating Rate  Floating   Termination         Net Unrealized 
Counter Party  Entity/Obligation   Amount   Paid by the Fund  Rate Index    Date    Value    Depreciation 
Credit Suisse  Bharti Airtel, Ltd.  $1,413,459   125 bps + 1M LIBOR  1 M LIBOR   12/31/2020   $1,254,301   $(159,158)
Morgan Stanley  Mahindra & Mahindra, Ltd.   2,466,438   225 bps + 1D FEDEF  1 D FEDEF   07/12/2018    2,435,545    (30,893)
Morgan Stanley  Sociedad Quimica   (698,720)  1 D FEDEF - 75bps  1 D FEDEF   02/03/2020    (712,812)   (14,092)
      $3,181,177              $2,977,034   $(204,143)
      $17,217,454              $23,033,357   $5,815,903 

 

 

 

 
Clough Global Opportunities Fund
STATEMENT OF INVESTMENTS
January 31, 2018 (Unaudited)
 
   Shares   Value 
COMMON STOCKS 89.15%
Consumer Discretionary 15.56%
Amazon.com, Inc.(a)(b)(c)   7,274   $10,553,774 
BYD Co., Ltd. - Class H   585,600    5,513,405 
DR Horton, Inc.(b)(c)   53,501    2,624,224 
JD.com, Inc. - ADR(a)(b)(c)   118,300    5,823,909 
Lennar Corp. - Class A(b)(c)   33,600    2,105,376 
Liberty Broadband Corp. - Class C(a)(b)(c)   92,467    8,835,222 
Liberty Ventures - Series A(a)(b)(c)   261,262    15,396,170 
Man Wah Holdings, Ltd.   2,041,600    2,171,401 
Panasonic Corp.   380,800    5,647,295 
PulteGroup, Inc.(b)(c)   54,800    1,744,284 
Wayfair, Inc. - Class A(a)(b)(c)   32,400    2,981,124 
         63,396,184 
           
Consumer Staples 0.83%          
Japan Tobacco, Inc.   81,200    2,686,584 
Orion Corp.(a)   6,315    691,909 
         3,378,493 
           
Energy 6.90%          
Baker Hughes, a GE Co.(b)   287,400    9,239,910 
Fairway Energy LP(a)(d)(e)(f)(g)   536,000    2,805,960 
Halliburton Co.(b)(c)   64,300    3,452,910 
Kinder Morgan, Inc.(b)   523,800    9,417,924 
Schlumberger, Ltd.(b)   43,500    3,200,730 
         28,117,434 
           
Financials 29.49%          
Ares Capital Corp.(b)   773,900    12,343,705 
Bank of America Corp.(b)(c)   537,110    17,187,520 
Blackstone Mortgage Trust, Inc. - Class A(b)   406,700    12,607,700 
Citigroup, Inc.(b)(c)   196,627    15,431,287 
Country Garden Holdings Co., Ltd.   1,537,000    3,304,806 
First Republic Bank(b)   36,500    3,268,575 
Global Medical REIT, Inc.(b)   310,000    2,486,200 
Golub Capital BDC, Inc.(b)   313,957    5,704,599 
JPMorgan Chase & Co.(b)(c)   119,400    13,810,998 
Ladder Capital Corp.(b)   205,942    2,979,981 
Longfor Properties Co., Ltd.   1,018,500    3,326,580 
Ping An Insurance Group Co. of China, Ltd. - Class H   285,200    3,377,855 
Postal Savings Bank Of China Co., Ltd. - Class H   2,546,000    1,702,183 
Solar Capital, Ltd.(b)   224,331    4,710,951 
Starwood Property Trust, Inc.(b)   786,286    16,032,372 
TPG Specialty Lending, Inc.(b)   95,948    1,843,161 
         120,118,473 
 
   Shares   Value 
Health Care 14.20%
Align Technology, Inc.(a)(b)(c)   11,240   $2,944,880 
Apellis Pharmaceuticals, Inc.(a)(b)   213,773    3,548,632 
Apellis Pharmaceuticals, Inc. - Private Placement(a)(d)(e)(f)   139,701    2,256,548 
ARMO Biosciences, Inc.(a)(b)   36,500    1,116,900 
BioMarin Pharmaceutical, Inc.(a)(b)(c)   9,200    830,116 
Boston Scientific Corp.(a)(b)(c)   41,300    1,154,748 
Bristol-Myers Squibb Co.(b)(c)   42,900    2,685,540 
Cardiome Pharma Corp.(a)(b)   1,042,181    1,584,115 
Celgene Corp.(a)(b)(c)   32,300    3,267,468 
Centrexion Therapeutics(a)(d)(e)(f)(g)   1,361,111    2,450,000 
Clovis Oncology, Inc.(a)(b)(c)   41,800    2,528,900 
CRISPR Therapeutics AG(a)(b)(c)   272,810    10,715,977 
Express Scripts Holding Co.(a)(b)(c)   44,400    3,515,592 
GW Pharmaceuticals PLC - ADR(a)(b)(c)   19,700    2,721,161 
Intra-Cellular Therapies, Inc.(a)(b)   240,400    4,091,608 
Pfizer, Inc.(b)(c)   86,400    3,200,256 
Sienna Biopharmaceuticals, Inc.(a)(b)   312,012    5,491,411 
Vertex Pharmaceuticals, Inc.(a)(b)(c)   22,450    3,746,232 
         57,850,084 
           
Industrials 1.69%          
Airbus SE   60,041    6,895,314 
           
Information Technology 20.48%          
58.com, Inc. - ADR(a)   39,000    3,115,320 
Alibaba Group Holding, Ltd. - Sponsored
ADR(a)(b)(c)
   46,610    9,521,957 
ams AG   48,554    4,480,062 
Broadcom, Ltd.(b)(c)   12,574    3,118,729 
Cognizant Technology Solutions Corp. - Class
A(b)(c)
   47,800    3,727,444 
Equinix, Inc.(b)   7,160    3,259,160 
Facebook, Inc. - Class A(a)(b)(c)   37,050    6,924,274 
GoDaddy, Inc. - Class A(a)(b)(c)   66,700    3,683,841 
Lam Research Corp.(b)(c)   16,050    3,073,896 
Microchip Technology, Inc.(b)(c)   69,600    6,627,312 
Microsoft Corp.(b)(c)   103,100    9,795,531 
Nintendo Co., Ltd.   9,975    4,383,079 
Salesforce.com, Inc.(a)(b)(c)   40,500    4,613,355 
Samsung Electronics Co., Ltd.   2,189    5,114,534 
ServiceNow, Inc.(a)(b)   16,500    2,456,355 
Ulvac, Inc.   22,600    1,509,151 
ViaSat, Inc.(a)(b)(c)   105,835    8,003,243 
         83,407,243 
           
TOTAL COMMON STOCKS          
(Cost $316,861,096)        363,163,225 

 

 

 

 
   Shares   Value 
CLOSED-END FUNDS 3.16%
Altaba, Inc.(a)(b)(c)   161,100   $12,868,668 
           
TOTAL CLOSED-END FUNDS          
(Cost $11,162,953)        12,868,668 
           
PARTICIPATION NOTES 1.82%          
Consumer Discretionary 1.82%          
Midea Group Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 05/13/2019(d)   779,600    7,412,842 
           
           
TOTAL PARTICIPATION NOTES          
(Cost $4,726,529)        7,412,842 
           
PREFERRED STOCKS 4.10%          
Annaly Capital Management, Inc.          
Series G, 6.500%(b)   65,000    1,599,650 
Series E, 7.625%(b)   162,911    4,102,099 
Ares Management LP          
Series A, 7.000%(b)   147,000    3,814,650 
PennyMac Mortgage Investment Trust          
Series B, 3M US L + 5.99%(b)(c)(h)   70,000    1,739,500 
Summit Hotel Properties, Inc.          
Series E, 6.250%(b)   116,000    2,908,120 
Two Harbors Investment Corp.          
Series C, 3M US L + 5.011%(b)(h)   105,000    2,548,350 
         16,712,369 
           
TOTAL PREFERRED STOCKS          
(Cost $16,377,214)        16,712,369 

 

Description and   Principal      
Maturity Date   Amount     Value 
CORPORATE BONDS 24.13%          
American Tower Corp.          
06/15/2023, 3.000%(b)  $2,500,000    2,469,721 
Bank of America Corp.          
10/21/2022, 2.503%(b)   2,500,000    2,444,295 
Biogen, Inc.          
09/15/2020, 2.900%   20,000    20,114 
Citigroup, Inc.          
04/25/2022, 2.750%(b)   8,000,000    7,899,818 
Citizens Bank National Association          
12/04/2019, 2.450%(b)   2,802,000    2,789,903 
DR Horton, Inc.          
12/01/2020, 2.550%(b)(c)   3,000,000    2,983,603 
EI du Pont de Nemours & Co.          
05/01/2020, 2.200%(b)   2,000,000    1,987,882 
Exelon Corp.          
12/01/2020, 5.150%(b)   2,900,000    3,071,581 
 
Description and  Principal     
Maturity Date  Amount   Value 
CORPORATE BONDS (continued)
First Republic Bank        
06/17/2019, 2.375%(b)  $5,000,000   $4,981,800 
Ford Motor Credit Co. LLC          
05/04/2023, 3.096%   5,000,000    4,882,091 
Goldman Sachs Group, Inc.          
10/31/2022, 3M US L + 0.821%(b)(h)   4,000,000    3,950,291 
Hercules Capital, Inc.          
10/23/2022, 4.625%(b)   3,000,000    3,040,120 
Jackson National Life Global Funding          
04/29/2021, 2.250%(b)(d)   4,160,000    4,079,979 
JPMorgan Chase & Co.          
09/23/2022, 3.250%(b)(c)   4,000,000    4,041,495 
Lennar Corp.          
12/01/2018, 4.125%(b)   4,500,000    4,556,250 
Main Street Capital Corp.          
12/01/2022, 4.500%(b)   3,750,000    3,757,554 
Manufacturers & Traders Trust Co.          
02/06/2020, 2.100%(b)(c)   4,000,000    3,967,585 
Mitsubishi UFJ Trust & Banking Corp.          
10/16/2019, 2.450%(b)(d)   2,155,000    2,149,717 
Morgan Stanley          
05/19/2022, 2.750%(b)   2,500,000    2,465,253 
Philip Morris International, Inc.          
08/22/2022, 2.500%(b)   1,600,000    1,566,950 
PNC Bank National Association          
11/05/2020, 2.450%(b)(c)   2,000,000    1,990,864 
Raytheon Co.          
10/15/2020, 3.125%(b)   2,330,000    2,366,776 
Royal Bank of Canada          
02/05/2020, 1.875%(b)   1,000,000    988,004 
Solar Capital, Ltd.          
01/20/2023, 4.500%(b)   2,500,000    2,445,419 
Tencent Holdings, Ltd.          
05/02/2019, 3.375%(b)   4,000,000    4,039,553 
01/19/2023, 2.985%(b)(d)   3,000,000    2,970,214 
Toronto-Dominion Bank          
12/14/2020, 2.500%(b)   3,332,000    3,322,890 
Wells Fargo & Co.          
Series MTN, 07/22/2022, 2.625%(b)(c)   5,000,000    4,918,190 
Series K, Perpetual Maturity,
3M US L + 3.77%(h)(i)
   3,000,000    3,031,950 
Welltower, Inc.          
04/01/2019, 4.125%(b)   5,033,000    5,109,316 
           
TOTAL CORPORATE BONDS          
(Cost $99,314,689)        98,289,178 
           
ASSET/MORTGAGE BACKED SECURITIES 8.52%  
Federal National Mortgage Association - REMICS          
Series 2017-16, Class NA, 03/25/2047, 3.000%(b)   2,555,581    2,493,376 
Series 2017-60, Class C, 08/25/2047, 3.500%(b)   2,372,074    2,357,698 

 

 

 

 
Description and  Principal     
Maturity Date  Amount   Value 
ASSET/MORTGAGE BACKED SECURITIES (continued)
Government National Mortgage Association - REMICS     
Series 2013-118, Class AD, 06/16/2036, 1.550%  $1,576,745   $1,546,398 
Series 2012-83, Class A, 07/16/2041, 1.368%   3,787,429    3,608,605 
Series 2014-172, Class AC, 09/16/2041, 1.900%(b)   3,923,606    3,858,701 
Series 2013-68, Class AC, 02/16/2046, 1.300%   3,265,210    3,090,817 
Series 2017-103, Class HG, 01/20/2047, 2.500%   2,231,577    2,159,314 
Series 2015-130, Class AB, 08/16/2047, 2.550%   3,050,330    3,006,611 
Series 2014-166, Class PJ, 07/16/2051, 2.500%   3,830,782    3,749,363 
Series 2012-111, Class A, 09/16/2052, 2.387%   1,794,830    1,772,793 
Series 2013-101, Class AD, 12/16/2053, 2.623%(h)   2,941,291    2,875,599 
SBA Small Business Investment Companies          
Series 2013-10B, Class 1, 09/10/2023, 3.644%   2,662,115    2,714,118 
Series 2016-10A, Class 1, 03/10/2026, 2.507%   1,469,492    1,456,439 
           
TOTAL ASSET/MORTGAGE BACKED SECURITIES  
(Cost $35,534,595)        34,689,832 
           
GOVERNMENT & AGENCY OBLIGATIONS 3.32%  
U.S. Treasury Bonds          
11/15/2026, 6.500%(b)   3,150,000    4,088,601 
08/15/2029, 6.125%(b)   3,375,000    4,507,800 
02/15/2038, 4.375%(b)   4,000,000    4,937,969 
           
TOTAL GOVERNMENT & AGENCY OBLIGATIONS      
(Cost $14,225,030)        13,534,370 
           
    Shares/Principal Amount     Value 
SHORT-TERM INVESTMENTS 7.61%          
Money Market Fund 7.61%          
BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (1.209% 7-day yield)   31,004,204    31,004,204 
           
TOTAL SHORT-TERM INVESTMENTS       
(Cost $31,004,204)        31,004,204 
 
         
       Value 
Total Investments - 141.81%    
(Cost $529,206,310)       $577,674,688 
           
Liabilities in Excess of Other Assets - (41.81%)(j)        (170,311,394)
           
NET ASSETS - 100.00%       $407,363,294 
           
SCHEDULE OF SECURITIES SOLD SHORT (a)    Shares     Value 
COMMON STOCKS (11.53%)          
Consumer Staples (1.21%)          
Walgreens Boots Alliance, Inc.   (65,200)   (4,906,952)
           
Financials (1.28%)          
Deutsche Bank AG   (122,600)   (2,248,484)
Santander Consumer USA Holdings, Inc.   (172,400)   (2,973,900)
         (5,222,384)
           
Health Care (2.36%)          
AmerisourceBergen Corp.   (37,400)   (3,727,658)
Editas Medicine, Inc.   (52,800)   (1,927,728)
McKesson Corp.   (23,400)   (3,951,792)
         (9,607,178)
           
Information Technology (5.85%)          
AU Optronics Corp. - Sponsored ADR   (272,612)   (1,305,811)
Cirrus Logic, Inc.   (32,400)   (1,606,068)
Ingenico Group SA   (21,012)   (2,392,220)
International Business Machines Corp.   (51,350)   (8,405,995)
LINE Corp. - Sponsored ADR   (53,300)   (2,365,987)
Manhattan Associates, Inc.   (114,700)   (6,058,454)
Skyworks Solutions, Inc.   (17,400)   (1,691,454)
         (23,825,989)
           
Materials (0.83%)          
Albemarle Corp.   (15,200)   (1,696,168)
FMC Corp.   (18,600)   (1,698,738)
         (3,394,906)
           
TOTAL COMMON STOCKS          
(Proceeds $41,996,555)        (46,957,409)
           
EXCHANGE TRADED FUNDS (0.61%)          
United States Natural Gas Fund LP   (98,500)   (2,470,380)
           
TOTAL EXCHANGE TRADED FUNDS          
(Proceeds $2,967,880)        (2,470,380)
           
TOTAL SECURITIES SOLD SHORT          
(Proceeds $44,964,435)       $(49,427,789)

 

 

 

 

Investment Abbreviations:

1D FEDEF - Federal Funds Effective Rate (Daily)

LIBOR - London Interbank Offered Rate

 

Libor Rates:

3M US L - 3 Month LIBOR as of January 31, 2018 was 1.78%

 

(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 January 31, 2018, the aggregate value of those securities was $433,280,165, representing 106.36% of net assets. (See Note 1 and Note 2).
(c)Loaned security; a portion or all of the security is on loan as of January 31, 2018.
(d)Security exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of January 31, 2018, these securities had an aggregate value of $24,125,260 or 5.92% of net assets.
(e)Private Placement; these securities may only be resold in transactions exempt from registration under the Securities Act of 1933. As of January 31, 2018, these securities had a total value of $7,512,508 or 1.84% of net assets and have been deemed illiquid by the Adviser based on procedures approved by the Board of Trustees. (See Note 1).
(f)Fair valued security; valued by management in accordance with procedures approved by the Fund's Board of Trustees. As of January 31, 2018, these securities had an aggregate market value of $7,512,508 or 1.84% of total net assets.
(g)As a result of the use of significant unobservable inputs to determine fair value, these investments have been classified as Level 3 assets. See also footnote 1 to the financial statements for additional information.
(h)Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at January 31, 2018. For securities based on a published reference rate and spread, the reference rate and spread are indicated in the description above.
(i)This security has no contractual maturity date, is not redeemable and contractually pays an indefinite stream of interest.
(j)Includes cash which is being held as collateral for total return swap contracts and securities sold short.

 

 

 

 

TOTAL RETURN SWAP CONTRACTS        
         
   Reference  Notional   Floating Rate  Floating  Termination       Net Unrealized 
Counter Party  Entity/Obligation  Amount   Paid by the Fund  Rate Index  Date   Value   Appreciation 
Credit Suisse  Hero MotoCorp, Ltd.  $3,741,915   143 bps + 1M LIBOR  1 M LIBOR   12/31/2020   $4,557,918   $816,003 
Morgan Stanley  Hero MotoCorp, Ltd.   2,789,428   225 bps + 1D FEDEF  1 D FEDEF   07/12/2018    3,169,759    380,331 
Credit Suisse  Housing Development Finance Corp.   1,063,964   125 bps + 1M LIBOR  1 M LIBOR   12/31/2020    1,681,888    617,924 
Morgan Stanley  Housing Development Finance Corp.   8,000,581   225 bps + 1D FEDEF  1 D FEDEF   07/12/2018    11,422,519    3,421,938 
Credit Suisse  Indiabulls Housing Finance   2,862,211   187 bps + 1M LIBOR  1 M LIBOR   12/31/2020    5,009,793    2,147,582 
Morgan Stanley  ITC, Ltd.   3,294,269   225 bps + 1D FEDEF  1 D FEDEF   07/12/2018    3,592,514    298,245 
Credit Suisse  Larsen & Toubro, Ltd.   3,250,457   217 bps + 1M LIBOR  1 M LIBOR   12/31/2020    6,951,353    3,700,896 
Morgan Stanley  Larsen & Toubro, Ltd.   2,267,287   225 bps + 1D FEDEF  1 D FEDEF   07/12/2018    3,247,157    979,870 
Credit Suisse  Mahindra & Mahindra, Ltd.   3,470,933   125 bps + 1M LIBOR  1 M LIBOR   12/31/2020    3,853,415    382,482 
Morgan Stanley  United Microelectronics Corp.   (1,325,189)  1D FEDEF - 75 bps  1 D FEDEF   07/12/2018    (1,230,383)   94,806 
      $29,415,856              $42,255,933   $12,840,077 
                              
   Reference   Notional   Floating Rate  Floating   Termination         Net Unrealized 
Counter Party  Entity/Obligation   Amount   Paid by the Fund  Rate Index    Date    Value    Depreciation 
Credit Suisse  Bharti Airtel, Ltd.  $3,437,233   125 bps + 1M LIBOR  1 M LIBOR   12/31/2020   $3,050,194   $(387,039)
Morgan Stanley  Mahindra & Mahindra, Ltd.   6,260,116   225 bps + 1D FEDEF  1 D FEDEF   07/12/2018    6,181,708    (78,408)
Morgan Stanley  Sociedad Quimica   (1,677,028)  1 D FEDEF - 75bps  1 D FEDEF   02/03/2020    (1,710,851)   (33,823)
      $8,020,321              $7,521,051   $(499,270)
      $37,436,177              $49,776,984   $12,340,807 

 

For Fund compliance purposes, each Funds 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 each Fund's 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 Quarterly Statement of Investments.

 

 

 

Clough Global FundS

Notes to Quarterly Statement of Investments

January 31, 2018 (unaudited)

 

1. Organization and SIGNIFICANT ACCOUNTING AND OPERATING POLICIES

 

Clough Global Dividend and Income Fund, Clough Global Equity Fund, and Clough Global Opportunities Fund (each a “Fund”, collectively the “Funds”), are closed-end management investment companies registered under the Investment Company Act of 1940 (the “1940 Act”). The Funds were organized under the laws of the state of Delaware on April 27, 2004, January 25, 2005, and January 12, 2006, respectively for Clough Global Dividend and Income Fund, Clough Global Equity Fund, and Clough Global Opportunities Fund. The Funds were previously registered as non- diversified investment companies. As a result of ongoing operations, each of the Funds became a diversified company. The Funds may not resume operating in a non-diversified manner without first obtaining shareholder approval. Each Fund’s investment objective is to provide a high level of total return. Each Declaration of Trust provides that the Board of Trustees (the “Board”) may authorize separate classes of shares of beneficial interest. The common shares of Clough Global Dividend and Income Fund, Clough Global Equity Fund, and Clough Global Opportunities Fund are listed on the NYSE American LLC and trade under the ticker symbols “GLV”, “GLQ” and “GLO” respectively.

 

The following is a summary of significant accounting policies followed by the Funds. These policies are in conformity with U.S. generally accepted accounting principles (“GAAP”). The preparation of the Statement of Investments in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts and disclosures in the Statement of Investments during the reporting period. Management believes the estimates and security valuations are appropriate; however, actual results may differ from those estimates, and the security valuations reflected in the Statement of Investments may differ from the value the Funds ultimately realize upon sale of the securities. Each Fund is considered an investment company for financial reporting purposes under GAAP and follows the accounting and reporting guidance applicable to investment companies as codified in Accounting Standards Codification Topic (“ASC”) 946 – Investment Companies.

 

The net asset value per share of each Fund is determined no less frequently than daily, on each day that the New York Stock Exchange (“NYSE” or the “Exchange”) is open for trading, as of the close of regular trading on the Exchange (normally 4:00 p.m. New York time). Trading may take place in foreign issues held by the Fund at times when a Fund is not open for business. As a result, each Fund’s net asset value may change at times when it is not possible to purchase or sell shares of a Fund.

 

Investment Valuation: Securities, including preferred stocks, exchange traded funds, closed-end funds and participation notes held by each Fund for which exchange quotations are readily available are valued at the last sale price, or if no sale price or if traded on the over-the-counter market, at the mean of the bid and asked prices on such day. Most securities listed on a foreign exchange are valued at the last sale price at the close of the exchange on which the security is primarily traded. In certain countries market maker prices are used since they are the most representative of the daily trading activity. Market maker prices are usually the mean between the bid and ask prices. Certain markets are not closed at the time that the Funds price their portfolio securities. In these situations, snapshot prices are provided by the individual pricing services or other alternate sources at the close of the NYSE as appropriate. Securities not traded on a particular day are valued at the mean between the last reported bid and the asked quotes, or the last sale price when appropriate; otherwise fair value will be determined by the board-appointed fair valuation committee. Debt securities for which the over-the-counter market is the primary market are normally valued on the basis of prices furnished by one or more pricing services or dealers at the mean between the latest available bid and asked prices. As authorized by the Board, debt securities (including short-term obligations that will mature in 60 days or less) may be valued on the basis of valuations furnished by a pricing service which determines valuations based upon market transactions for normal, institutional-size trading units of securities or a matrix method which considers yield or price of comparable bonds provided by a pricing service. Over-the-counter options are valued at the mean between bid and asked prices provided by dealers. Exchange-traded options are valued at closing settlement prices. Total return swaps are priced based on valuations provided by a Board approved independent third party pricing agent. If a total return swap price cannot be obtained from an independent third party pricing agent the Fund shall seek to obtain a bid price from at least one independent and/or executing broker.

 

If the price of a security is unavailable in accordance with the aforementioned pricing procedures, or the price of a security is unreliable, e.g., due to the occurrence of a significant event, the security may be valued at its fair value determined by management pursuant to procedures adopted by the Board. For this purpose, fair value is the price that a Fund reasonably expects to receive on a current sale of the security. Due to the number of variables affecting the price of a security, however; it is possible that the fair value of a security may not accurately reflect the price that a Fund could actually receive on a sale of the security.

 

A three-tier hierarchy has been established to classify fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best
information available.

 

 

Various inputs are used in determining the value of each Fund’s investments as of the reporting period end. These inputs are categorized in the following hierarchy under applicable financial accounting standards:

 

Level 1 Unadjusted quoted prices in active markets for identical, unrestricted assets or liabilities that a Fund has the ability to access at the measurement date;
Level 2 Quoted prices which are not active, quoted prices for similar assets or liabilities in active markets or inputs other than quoted prices that are observable (either directly or indirectly) for substantially the full term of the asset or liability; and
Level 3 Significant unobservable prices or inputs (including the Fund’s own assumptions in determining the fair value of investments) where there is little or no market activity for the asset or liability at the measurement date.

 

The following is a summary of the inputs used as of January 31, 2018, in valuing each Fund’s investments carried at value.

 

Clough Global Dividend and Income Fund
                 
Investments in Securities at Value*  Level 1   Level 2   Level 3   Total 
Common Stocks                
Consumer Discretionary  $7,252,082   $   $   $7,252,082 
Consumer Staples   661,720            661,720 
Energy   6,503,305        684,214    7,187,519 
Financials   34,454,038            34,454,038 
Health Care   3,755,002            3,755,002 
Industrials   1,772,149            1,772,149 
Information Technology   12,819,656            12,819,656 
Closed-End Funds   2,275,086            2,275,086 
Participation Notes       1,819,931        1,819,931 
Preferred Stocks   7,287,964            7,287,964 
Corporate Bonds       37,693,261        37,693,261 
Asset/Mortgage Backed Securities       13,407,847        13,407,847 
Government & Agency Obligations       8,331,657        8,331,657 
Short-Term Investments                    
Money Market Fund   7,983,805            7,983,805 
TOTAL  $84,764,807   $61,252,696   $684,214   $146,701,717 

 

Other Financial Instruments   Level 1    Level 2    Level 3    Total 
Assets                    
Total Return Swap Contracts**  $   $3,301,232   $   $3,301,232 
                     
Liabilities
Securities Sold Short                    
Common Stocks   (10,073,901)           (10,073,901)
Exchange Traded Funds   (618,222)           (618,222)
Total Return Swap Contracts**       (131,600)       (131,600)
TOTAL  $(10,692,123)  $3,169,632   $   $(7,522,491)

 

 

Clough Global Equity Fund
                 
Investments in Securities at Value*  Level 1   Level 2   Level 3   Total 
Common Stocks                    
Consumer Discretionary  $33,858,461   $   $   $33,858,461 
Consumer Staples   1,358,173            1,358,173 
Energy   10,479,227        1,139,136    11,618,363 
Financials   61,823,845            61,823,845 
Health Care   26,941,716    909,348    749,999    28,601,063 
Industrials   2,852,596            2,852,596 
Information Technology   44,255,532            44,255,532 
Closed-End Funds   8,971,550            8,971,550 
Participation Notes       2,943,838        2,943,838 
Preferred Stocks   9,654,351            9,654,351 
Corporate Bonds       2,021,300        2,021,300 
Government & Agency Obligations       5,415,861        5,415,861 
Short-Term Investments                    
Money Market Fund   22,766,159            22,766,159 
U.S. Treasury Bills       4,974,100        4,974,100 
TOTAL  $222,961,610   $16,264,447   $1,889,135   $241,115,192 

 

Other Financial Instruments   Level 1    Level 2    Level 3    Total 
Assets                    
Total Return Swap Contracts**  $   $6,020,046   $   $6,020,046 
                     
Liabilities
Securities Sold Short                    
Common Stocks   (20,808,331)           (20,808,331)
Exchange Traded Funds   (986,271)           (986,271)
Total Return Swap Contracts**       (204,143)       (204,143)
TOTAL  $(21,794,602)  $5,815,903   $   $(15,978,699)

 

Clough Global Opportunities Fund
                 
Investments in Securities at Value*  Level 1   Level 2   Level 3   Total 
Common Stocks                    
Consumer Discretionary  $63,396,184   $   $   $63,396,184 
Consumer Staples   3,378,493            3,378,493 
Energy   25,311,474        2,805,960    28,117,434 
Financials   120,118,473            120,118,473 
Health Care   53,143,536    2,256,548    2,450,000    57,850,084 
Industrials   6,895,314            6,895,314 
Information Technology   83,407,243            83,407,243 
Closed-End Funds   12,868,668            12,868,668 
Participation Notes       7,412,842        7,412,842 
Preferred Stocks   16,712,369            16,712,369 
Corporate Bonds       98,289,178        98,289,178 
Asset/Mortgage Backed Securities       34,689,832        34,689,832 
Government & Agency Obligations       13,534,370        13,534,370 
Short-Term Investments                    
Money Market Fund   31,004,204            31,004,204 
TOTAL  $416,235,958   $156,182,770   $5,255,960   $577,674,688 

 

Other Financial Instruments   Level 1    Level 2    Level 3    Total 
Assets                    
Total Return Swap Contracts**  $   $12,840,077   $   $12,840,077 
                     
Liabilities
Securities Sold Short                    
Common Stocks   (46,957,409)           (46,957,409)
Exchange Traded Funds   (2,470,380)           (2,470,380)
Total Return Swap Contracts**       (499,270)       (499,270)
TOTAL  $(49,427,789)  $12,340,807   $   $(37,086,982)

 

*For detailed sector descriptions, see the accompanying Statements of Investments.
**Swap contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date.

 

The Funds recognize transfers between the levels as of the end of the period in which the transfer occurred. As of the period ended January 31, 2018, the Funds had the following transfers between Level 1 and Level 2.

 

Clough Global Equity Fund

 

   Level 1   Level 2 
   Transfers In   Transfers (Out)   Transfers In   Transfers (Out) 
Common Stock  $1,347,720   $-   $-   $(1,347,720)
Total  $1,347,720   $-   $-   $(1,347,720)

 

Clough Global Opportunities fund

 

   Level 1   Level 2 
   Transfers In   Transfers (Out)   Transfers In   Transfers (Out) 
Common Stock  $3,354,982   $-   $-   $(3,354,982)
Total  $3,354,982   $-   $-   $(3,354,982)

 

 

The common stock transferred from Level 2 to Level 1 during the period ended January 31, 2018 was based on a security completing the required 180-day post IPO lock-up period. This position was previously valued using a fair value adjustment factor at October 31, 2017 but was valued using a quoted market price in an active market as of January 31, 2018.

 

In the event a Board approved independent pricing service is unable to provide an evaluated price for a security or Clough Capital Partners L.P. (the “Adviser” or “Clough”) believes the price provided is not reliable, securities of each Fund may be valued at fair value as described above. In these instances the Adviser may seek to find an alternative independent source, such as a broker/dealer to provide a price quote, or by using evaluated pricing models similar to the techniques and models used by the independent pricing service. These fair value measurement techniques may utilize unobservable inputs (Level 3).

 

On a monthly basis, the Fair Value Committee of each Fund meets and discusses securities that have been fair valued during the preceding month in accordance with the Funds’ Fair Value Procedures and reports quarterly to the Board on the results of those meetings.

 

The following is a reconciliation of the investments in which significant unobservable inputs (Level 3) were used in determining fair value:

 

Clough Global Dividend and Income Fund                            
Investments in Securities  Balance as of October 31, 2017   Realized
Gain/(Loss)
  

Change in

Unrealized
Appreciation/ (Depreciation)

   Purchases   Sales Proceeds   Transfer
into
Level 3
   Transfer
out of
Level 3
   Balance as of January 31, 2018  

Net change in unrealized

appreciation/ (depreciation) attributable to Level 3 investments held at January 31, 2018

 
Common Stocks  $773,744   $   $(89,530)  $   $   $   $   $684,214   $(89,530)
Total  $773,744   $   $(89,530)  $   $   $   $   $684,214   $(89,530)

 

Clough Global Equity Fund                            
Investments in Securities  Balance as of October 31, 2017   Realized
Gain/(Loss)
  

Change in

Unrealized
Appreciation/ (Depreciation)

   Purchases   Sales Proceeds   Transfer
into
Level 3
   Transfer
out of
Level 3
   Balance as of January 31, 2018  

Net change in unrealized

appreciation/ (depreciation) attributable to Level 3 investments held at January 31, 2018

 
Common Stocks  $1,596,923   $   $451,561   $749,999   $   $   $(909,348)  $1,889,135   $(149,056)
Total  $1,596,923   $   $451,561   $749,999   $   $   $(909,348)  $1,889,135   $(149,056)

 

Clough Global Opportunities Fund                            
Investments in Securities  Balance as of October 31, 2017   Realized
Gain/(Loss)
  

Change in

Unrealized
Appreciation/ (Depreciation)

   Purchases   Sales Proceeds   Transfer
into
Level 3
   Transfer
out of
Level 3
   Balance as of January 31, 2018  

Net change in unrealized

appreciation/ (depreciation) attributable to Level 3 investments held at January 31, 2018

 
Common Stocks  $3,939,237   $   $1,123,271   $2,450,000   $   $   $(2,256,548)  $5,255,960   $(367,160)
Total  $3,939,237   $   $1,123,271   $2,450,000   $   $   $(2,256,548)  $5,255,960   $(367,160)

 

The following is a summary of valuation techniques and quantitative information used in determining the fair value of the Fund’s Level 3 investments at January 31, 2018:

 

Fund Sector Fair Value Valuation Technique Unobservable Input(a) Range/Premium
Clough Global Dividend and Income Fund Energy $684,214 Comparable Company Approach Implied Premium 24.69%
        Projected EV/EBITDA Multiple 0.33x – 1.37x
        Projected EV/Revenue Multiple 0.81x – 1.48x
Clough Global Equity Fund Energy $1,139,136 Comparable Company Approach Implied Premium 24.69%
        Projected EV/EBITDA Multiple 0.33x – 1.37x
        Projected EV/Revenue Multiple 0.81x – 1.48x
  Health Care $749,999 Recent Financings Transaction Price N/A
Clough Global Opportunities Fund Energy $2,805,960 Comparable Company Approach Implied Premium 24.69%
        Projected EV/EBITDA Multiple 0.33x – 1.37x
        Projected EV/Revenue Multiple 0.81x – 1.48x
  Health Care $2,450,000 Recent Financings Transaction Price N/A

 

(a)A change to the unobservable input may result in a significant change to the value of the investment as follows:

 

 

Unobservable Input Impact to Value if Input Increases Impact to Value if Input Decreases
Implied Premium Increase Decrease
Projected EV/EBITDA Multiple Increase Decrease
Projected EV/Revenue Multiple Increase Decrease
Transaction Price Increase Decrease

 

Foreign Securities: Each Fund may invest a portion of its assets in foreign securities. In the event that a Fund executes a foreign security transaction, the Fund will generally enter into a foreign currency spot contract to settle the foreign security transaction. Foreign securities may carry more risk than U.S. securities, such as political, market and currency risks.

 

The accounting records of each Fund are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange at period end. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions.

 

A foreign currency spot contract is a commitment to purchase or sell a foreign currency at a future date, at a negotiated rate. Each Fund may enter into foreign currency spot contracts to settle specific purchases or sales of securities denominated in a foreign currency and for protection from adverse exchange rate fluctuation. Risks to a Fund include the potential inability of the counterparty to meet the terms of the contract.

 

Exchange Traded Funds: Each Fund may invest in exchange traded funds (“ETFs”), which are funds whose shares are traded on a national exchange. ETFs may be based on underlying equity or fixed income securities, as well as commodities or currencies. ETFs do not sell individual shares directly to investors and only issue their shares in large blocks known as “creation units.” The investor purchasing a creation unit then sells the individual shares on a secondary market. Although similar diversification benefits may be achieved through an investment in another investment company, ETFs generally offer greater liquidity and lower expenses. Because an ETF incurs its own fees and expenses, shareholders of a Fund investing in an ETF will indirectly bear those costs. Such Funds will also incur brokerage commissions and related charges when purchasing or selling shares of an ETF. Unlike typical investment company shares, which are valued once daily, shares in an ETF may be purchased or sold on a securities exchange throughout the trading day at market prices that are generally close to the NAV of the ETF.

 

Short Sales: Each Fund may sell a security it does not own in anticipation of a decline in the fair value of that security. When a Fund sells a security short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. A gain, limited to the price at which a Fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of the short sale.

 

Each Fund's obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash, U.S. government securities or other liquid securities. Each Fund will also be required to designate on its books and records similar collateral with its custodian to the extent, if any, necessary so that the aggregate collateral value is at all times at least equal to the current value of the security sold short. Each Fund is obligated to pay interest to the broker for any debit balance of the margin account relating to short sales.

 

Each Fund may also sell a security short if it owns at least an equal amount of the security sold short or another security convertible or exchangeable for an equal amount of the security sold short without payment of further compensation (a short sale against-the-box). In a short sale against-the-box, the short seller is exposed to the risk of being forced to deliver stock that it holds to close the position if the borrowed stock is called in by the lender, which would cause gain or loss to be recognized on the delivered stock. Each Fund expects normally to close its short sales against-the-box by delivering newly acquired stock.

 

Derivatives Instruments and Hedging Activities: The following discloses the Funds’ use of derivative instruments and hedging activities.

 

The Funds’ investment objectives not only permit the Funds to purchase investment securities, they also allow the Funds to enter into various types of derivative contracts, including, but not limited to, purchased and written options, swaps, futures and warrants. In doing so, the Funds will employ strategies in differing combinations to permit them to increase, decrease, or change the level or types of exposure to market factors. Central to those strategies are features inherent to derivatives that make them more attractive for this purpose than equity securities; they require little or no initial cash investment, they can focus exposure on only certain selected risk factors, and they may not require the ultimate receipt or delivery of the underlying security (or securities) to the contract. This may allow the Funds to pursue their objectives more quickly and efficiently than if they were to make direct purchases or sales of securities capable of affecting a similar response to market factors.

 

 

Risk of Investing in Derivatives: The Funds’ use of derivatives can result in losses due to unanticipated changes in the market risk factors and the overall market. In instances where the Funds are using derivatives to decrease or hedge exposures to market risk factors for securities held by the Funds, there are also risks that those derivatives may not perform as expected, resulting in losses for the combined or hedged positions.

 

Derivatives may have little or no initial cash investment relative to their market value exposure and therefore can produce significant gains or losses in excess of their cost. This use of embedded leverage allows the Funds to increase their market value exposure relative to their net assets and can substantially increase the volatility of the Funds’ performance.

 

Additional associated risks from investing in derivatives also exist and potentially could have significant effects on the valuation of the derivative and the Funds. Typically, the associated risks are not the risks that the Funds are attempting to increase or decrease exposure to, per their investment objectives, but are the additional risks from investing in derivatives.

 

Examples of these associated risks are liquidity risk, which is the risk that the Funds will not be able to sell the derivative in the open market in a timely manner, and counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Funds. Associated risks can be different for each type of derivative and are discussed by each derivative type in the notes that follow.

 

Each Fund may acquire put and call options and options on stock indices and enter into stock index futures contracts, certain credit derivatives transactions and short sales in connection with its equity investments. In connection with a Fund's investments in debt securities, it may enter into related derivatives transactions such as interest rate futures, swaps and options thereon and certain credit derivatives transactions. Derivatives transactions of the types described above subject a Fund to increased risk of principal loss due to imperfect correlation or unexpected price or interest rate movements. Each Fund also will be subject to credit risk with respect to the counterparties to the derivatives contracts purchased by a Fund. If a counterparty becomes bankrupt or otherwise fails to perform its obligations under a derivatives contract due to financial difficulties, each Fund may experience significant delays in obtaining any recovery under the derivatives contract in a bankruptcy or other reorganization proceeding. Each Fund may obtain only a limited recovery or may obtain no recovery in such circumstances.

 

Market Risk Factors: In addition, in pursuit of their investment objectives, certain Funds may seek to use derivatives, which may increase or decrease exposure to the following market risk factors:

 

Equity Risk: Equity risk relates to the change in value of equity securities as they relate to increases or decreases in the general market.

 

Foreign Exchange Rate Risk: Foreign exchange rate risk relates to the change in the U.S. dollar value of a security held that is denominated in a foreign currency. The value of a foreign currency denominated security will decrease as the dollar appreciates against the currency, while the value of the foreign currency denominated security will increase as the dollar depreciates against the currency.

 

Option Writing/Purchasing: Each Fund may purchase or write (sell) put and call options. One of the risks associated with purchasing an option among others, is that a Fund pays a premium whether or not the option is exercised. Additionally, a Fund bears the risk of loss of premium and change in value should the counterparty not perform under the contract. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid. Each Fund is obligated to pay interest to the broker for any debit balance of the margin account relating to options. Each Fund pledges cash or liquid assets as collateral to satisfy the current obligations with respect to written options.

 

When a Fund writes an option, an amount equal to the premium received by a Fund is recorded as a liability and is subsequently adjusted to the current value of the option written. Premiums received from writing options that expire unexercised are treated by a Fund on the expiration date as realized gains. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is recorded as a realized gain or loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether a Fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by a Fund. Each Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option.

 

There was no written option or purchased option activity for the period ended January 31, 2018.

 

Futures Contracts: Each Fund may enter into futures contracts. A futures contract is an agreement to buy or sell a security or currency (or to deliver a final cash settlement price in the case of a contract relating to an index or otherwise not calling for physical delivery at the end of trading in the contract) for a set price at a future date. If a Fund buys a security futures contract, the Fund enters into a contract to purchase the underlying security and is said to be "long" under the contract. If a Fund sells a security futures contact, the Fund enters into a contract to sell the underlying security and is said to be "short" under the contract. The price at which the contract trades (the "contract price") is determined by relative buying and selling interest on a regulated exchange. Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by the Fund. Such payables or receivables are recorded for financial statement purposes as variation margin payable or variation margin receivable by each Fund. Each Fund pledges cash or liquid assets as collateral to satisfy the current obligations with respect to futures contracts. Management has reviewed the futures agreement under which the futures contracts are traded and has determined that the Funds do not have the right to set-off, and therefore the futures contracts are not subject to enforceable
netting arrangements.

 

 

The Funds enter into such transactions for hedging and other appropriate risk-management purposes or to increase return. While a Fund may enter into futures contracts for hedging purposes, the use of futures contracts might result in a poorer overall performance for the Fund than if it had not engaged in any such transactions. If, for example, the Fund had insufficient cash, it might have to sell a portion of its underlying portfolio of securities in order to meet daily variation margin requirements on its futures contracts or options on futures contracts at a time when it might be disadvantageous to do so. There may be an imperfect correlation between the Funds’ portfolio holdings and futures contracts entered into by the Fund, which may prevent the Fund from achieving the intended hedge or expose the Fund to risk of loss.

 

Futures contract transactions may result in losses substantially in excess of the variation margin. There can be no guarantee that there will be a correlation between price movements in the hedging vehicle and in the portfolio securities being hedged. An incorrect correlation could result in a loss on both the hedged securities in a Fund and the hedging vehicle so that the portfolio return might have been greater had hedging not been attempted. There can be no assurance that a liquid market will exist at a time when the Fund seeks to close out a futures contract. Lack of a liquid market for any reason may prevent a Fund from liquidating an unfavorable position, and the Fund would remain obligated to meet margin requirements until the position is closed. In addition, the Fund could be exposed to risk if the counterparties to the contracts are unable to meet the terms of their contracts. With exchange-traded futures contracts, there is minimal counterparty credit risk to the Funds since futures contracts are exchange-traded and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees the futures contracts against default.

 

Each Fund held no futures contracts at the end of the period.

 

Swaps: During the period each Fund engaged in total return swaps. A swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to changes in specified prices or rates for a specified amount of an underlying asset. Each Fund may utilize swap agreements as a means to gain exposure to certain assets and/or to “hedge” or protect the Fund from adverse movements in securities prices or interest rates. Each Fund is subject to equity risk and interest rate risk in the normal course of pursuing its investment objective through investments in swap contracts. Swap agreements entail the risk that a party will default on its payment obligation to a Fund. If the other party to a swap defaults, a Fund would risk the loss of the net amount of the payments that it contractually is entitled to receive. If each Fund utilizes a swap at the wrong time or judges market conditions incorrectly, the swap may result in a loss to the Fund and reduce the Fund’s total return.

 

Total return swaps involve an exchange by two parties in which one party makes payments based on a set rate, either fixed or variable, while the other party makes payments based on the return of an underlying asset, which includes both the income it generates and any capital gains over the payment period. A Fund’s maximum risk of loss from counterparty risk or credit risk is the discounted value of the payments to be received from/paid to the counterparty over the contract’s remaining life, to the extent that the amount is positive. The risk is mitigated by having a netting arrangement between a Fund and the counterparty and by the posting of collateral to a Fund to cover the Fund’s exposure to the counterparty. Each Fund pledges cash or liquid assets as collateral to satisfy the current obligations with respect to swap contracts.

 

International Swaps and Derivatives Association, Inc. Master Agreements (“ISDA Master Agreements”) govern OTC financial derivative transactions entered into by a Fund and those counterparties. The ISDA Master Agreements maintain provisions for general obligations, representations, agreements, collateral and events of default or termination. Events of termination include conditions that may entitle counterparties to elect to terminate early and cause settlement of all outstanding transactions under the applicable ISDA Master Agreement. Any election to early terminate could be material to the financial statements.

 

During the period ended January 31, 2018, the Funds invested in swap agreements consistent with the Funds’ investment strategies to gain exposure to certain markets or indices.

 

Warrants/Rights: Each Fund may purchase or otherwise receive warrants or rights. Warrants and rights generally give the holder the right to receive, upon exercise, a security of the issuer at a set price. Funds typically use warrants and rights in a manner similar to their use of purchased options on securities, as described in options above. Risks associated with the use of warrants and rights are generally similar to risks associated with the use of purchased options. However, warrants and rights often do not have standardized terms, and may have longer maturities and may be less liquid than exchange-traded options. In addition, the terms of warrants or rights may limit each Fund’s ability to exercise the warrants or rights at such times and in such quantities as each Fund would otherwise wish. During the period each Fund invested in warrants. Each Fund held no warrants or rights at the end of the period.

 

 

Restricted and Illiquid Securities: Although the Funds will invest primarily in publicly traded securities, they may invest a portion of their assets (generally, 5% of its value) in restricted securities and other investments which are illiquid. Restricted securities are securities that may not be sold to the public without an effective registration statement under the Securities Act of 1933, as amended (the "Securities Act") or, if they are unregistered, may be sold only in a privately negotiated transaction or pursuant to an exemption from registration.

 

The Funds may invest in securities for which there is no readily available trading market or which are otherwise illiquid. Illiquid securities include securities legally restricted as to resale, such as commercial paper issued pursuant to Section 4(2) of the Securities Act, and securities eligible for resale pursuant to Rule 144A thereunder. Section 4(2) and Rule 144A securities may, however, be treated as liquid by Clough pursuant to procedures adopted by the Board, which require consideration of factors such as trading activity, availability of market quotations and number of dealers willing to purchase the security.

 

The restricted securities held at January 31, 2018 are identified below and are also presented in the Funds' Statement of Investments:

 

Fund Security % of
Net Assets
  Acquisition
Date
Shares  Cost   Fair Value 
                    
Clough Global Dividend and Income Fund Fairway Energy LP 0.67% 6/30/2015 130,700  $1,307,000   $684,214 
Total   0.67%      $1,307,000   $684,214 
                    
Clough Global Equity Fund Apellis Pharmaceuticals, Inc. – Private Placement(a) 0.54% 8/7/2017 56,297  $308,731   $909,348 
  Centrexion Therapeutics 0.44% 12/18/2017 416,666   750,001    749,999 
  Fairway Energy LP 0.67% 6/30/2015 217,600   2,176,000    1,139,136 
Total   1.65%      $3,234,732   $2,798,483 
                    
Clough Global Opportunities Fund Apellis Pharmaceuticals, Inc. – Private Placement(a) 0.55% 8/7/2017 139,701  $766,117   $2,256,548 
  Centrexion Therapeutics 0.60% 12/18/2017 1,361,111   2,450,000    2,450,000 
  Fairway Energy LP 0.69% 6/30/2015 536,000   5,360,000    2,805,960 
Total   1.84%      $8,576,117   $7,512,508 

 

(a)The Fund also invests in unrestricted securities of the same issuer. The fair value of restricted securities is 38.39% and 38.87%, respectively, of the total value of securities of the same issuer.

 

Counterparty Risk: Each of the Funds run the risk that the issuer or guarantor of a fixed income security, the counterparty to an over-the-counter derivatives contract, a borrower of each Fund’s securities or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to make timely principal, interest, or settlement payments or otherwise honor its obligations. In addition, to the extent that each of the Funds use over-the-counter derivatives, and/or has significant exposure to a single counterparty, this risk will be particularly pronounced for each of the Funds.

 

Other Risk Factors: Investing in the Funds may involve certain risks including, but not limited to, the following:

 

Unforeseen developments in market conditions may result in the decline of prices of, and the income generated by, the securities held by the Funds. These events may have adverse effects on the Funds such as a decline in the value and liquidity of many securities held by the Funds, and a decrease in net asset value. Such unforeseen developments may limit or preclude the Funds’ ability to achieve their investment objective.

 

Investing in stocks may involve larger price fluctuation and greater potential for loss than other types of investments. This may result in the securities held by the Funds being subject to larger short-term declines in value compared to other types of investments.

 

The Funds may have elements of risk due to concentrated investments in foreign issuers located in a specific country. Such concentrations may subject the Funds to additional risks resulting from future political or economic conditions and/or possible impositions of adverse foreign governmental laws or currency exchange restrictions. Investments in securities of non-U.S. issuers have unique risks not present in securities of U.S. issuers, such as greater price volatility and less liquidity.

 

 

Fixed income securities are subject to credit risk, which is the possibility that a security could have its credit rating downgraded or that the issuer of the security could fail to make timely payments or default on payments of interest or principal. Additionally, fixed income securities are subject to interest rate risk, meaning the decline in the price of debt securities that accompanies a rise in interest rates. Bonds with longer maturities are subject to greater price fluctuations than bonds with shorter maturities.

 

The Funds invest in bonds which are rated below investment grade. These high yield bonds may be more susceptible than higher grade bonds to real or perceived adverse economic or industry conditions. The secondary market, on which high yield bonds are traded, may also be less liquid than the market for higher grade bonds.

 

Counterparty Risk: Each of the Funds run the risk that the issuer or guarantor of a fixed income security, the counterparty to an over-the-counter derivatives contract, a borrower of each Fund’s securities or the obligor of an obligation underlying an asset-backed security will be unable or unwilling to make timely principal, interest, or settlement payments or otherwise honor its obligations. In addition, to the extent that each of the Funds use over-the-counter derivatives, and/or has significant exposure to a single counterparty, this risk will be particularly pronounced for each of the Funds.

 

Other Risk Factors: Investing in the Funds may involve certain risks including, but not limited to, the following:

 

Unforeseen developments in market conditions may result in the decline of prices of, and the income generated by, the securities held by the Funds. These events may have adverse effects on the Funds such as a decline in the value and liquidity of many securities held by the Funds, and a decrease in net asset value. Such unforeseen developments may limit or preclude the Funds’ ability to achieve their investment objective.

 

Investing in stocks may involve larger price fluctuation and greater potential for loss than other types of investments. This may result in the securities held by the Funds being subject to larger short-term declines in value compared to other types of investments.

 

The Funds may have elements of risk due to concentrated investments in foreign issuers located in a specific country. Such concentrations may subject the Funds to additional risks resulting from future political or economic conditions and/or possible impositions of adverse foreign governmental laws or currency exchange restrictions. Investments in securities of non-U.S. issuers have unique risks not present in securities of U.S. issuers, such as greater price volatility and less liquidity.

 

Fixed income securities are subject to credit risk, which is the possibility that a security could have its credit rating downgraded or that the issuer of the security could fail to make timely payments or default on payments of interest or principal. Additionally, fixed income securities are subject to interest rate risk, meaning the decline in the price of debt securities that accompanies a rise in interest rates. Bonds with longer maturities are subject to greater price fluctuations than bonds with shorter maturities.

 

The Funds invest in bonds which are rated below investment grade. These high yield bonds may be more susceptible than higher grade bonds to real or perceived adverse economic or industry conditions. The secondary market, on which high yield bonds are traded, may also be less liquid than the market for higher grade bonds.

 

2. CommitTed facility agreement

 

Each Fund entered into a financing package that includes a Committed Facility Agreement (the “Agreement”) dated January 16, 2009, as amended, between each Fund and BNP Paribas Prime Brokerage, Inc. (“BNP”) that allows each Fund to borrow funds from BNP. Each Fund is currently borrowing the maximum commitment covered by the agreement. Each Fund entered a Special Custody and Pledge Agreement (the “Pledge Agreement”) dated December 9, 2013, as amended, between each Fund, the Funds’ custodian, and BNP. As of October 31, 2016, the Pledge Agreement was assigned from BNP to BNP Paribas Prime Brokerage International, Ltd. Per the Pledge Agreement, borrowings under the Agreement are secured by assets of each Fund that are held by the Fund’s custodian in a separate account (the “pledged collateral”) valued at $104,056,325, $158,943,725 and $403,497,214 for the Clough Global Dividend and Income Fund, Clough Global Equity Fund and Clough Global Opportunities Fund, respectively. Each Fund may, with 30 days notice, reduce the Maximum Commitment Financing (Initial Limit amount plus the increased borrowing amount in excess of the Initial Limit) to a lesser amount if drawing on the full amount would result in a violation of the applicable asset coverage requirement of Section 18 of the 1940 Act. Interest is charged at the three month LIBOR (London Inter-bank Offered Rate) plus 0.70% on the amount borrowed and 0.65% on the undrawn balance. Each Fund also pays a one-time arrangement fee of 0.25% on (i) the Initial Limit and (ii) any increased borrowing amount in the excess of the Initial Limit, paid in monthly installments for the six months immediately following the date on which borrowings were drawn by the Fund.

 

The Agreement was amended on November 2, 2017, to decrease the Maximum Commitment Financing, effective November 15, 2017, to $55,000,000, $85,000,000 and $207,000,000 for the Clough Global Dividend and Income Fund, Clough Global Equity Fund and the Clough Global Opportunities Fund, respectively. Prior to November 15, 2017 the Maximum Commitment Financing was $72,000,000, $113,000,000 and $292,000,000 for the Clough Global Dividend and Income Fund, Clough Global Equity Fund and the Clough Global Opportunities Fund, respectively. For the period ended January 31, 2018, the average borrowings outstanding for Clough Global Dividend and Income Fund, Clough Global Equity Fund and Clough Global Opportunities Fund under the agreement were $56,229,348, $88,136,957 and $211,592,391, respectively, and the average interest rate for the borrowings was 2.29%. As of January 31, 2018, the outstanding borrowings for Clough Global Dividend and Income Fund, Clough Global Equity Fund and Clough Global Opportunities Fund were $55,000,000, $85,000,000 and $207,000,000, respectively. The interest rate applicable to the borrowings of Clough Global Dividend and Income Fund, Clough Global Equity Fund and Clough Global Opportunities Fund on January 31, 2018, was 2.48%.

 

 

The Lending Agreement is a separate side-agreement between each Fund and BNP pursuant to which BNP may borrow a portion of the pledged collateral (the “Lent Securities”) in an amount not to exceed the outstanding borrowings owed by a Fund to BNP under the Agreement. The Lending Agreement is intended to permit each Fund to significantly reduce the cost of its borrowings under the Agreement. BNP has the ability to re- register the Lent Securities in its own name or in another name other than the Fund to pledge, re-pledge, sell, lend or otherwise transfer or use the collateral with all attendant rights of ownership. (It is each Fund’s understanding that BNP will perform due diligence to determine the creditworthiness of any party that borrows Lent Securities from BNP.) Each Fund may designate any security within the pledged collateral as ineligible to be a Lent Security, provided there are eligible securities within the pledged collateral in an amount equal to the outstanding borrowing owed by a Fund. During the period in which the Lent Securities are outstanding, BNP must remit payment to each Fund equal to the amount of all dividends, interest or other distributions earned or made by the Lent Securities.

 

Under the terms of the Lending Agreement, the Lent Securities are marked to market daily, and if the value of the Lent Securities exceeds the value of the then-outstanding borrowings owed by a Fund to BNP under the Agreement (the “Current Borrowings”), BNP must, on that day, either (1) return Lent Securities to each Fund’s custodian in an amount sufficient to cause the value of the outstanding Lent Securities to equal the Current Borrowings; or (2) post cash collateral with each Fund’s custodian equal to the difference between the value of the Lent Securities and the value of the Current Borrowings. If BNP fails to perform either of these actions as required, each Fund will recall securities, as discussed below, in an amount sufficient to cause the value of the outstanding Lent Securities to equal the Current Borrowings. Each Fund can recall any of the Lent Securities and BNP shall, to the extent commercially possible, return such security or equivalent security to each Fund’s custodian no later than three business days after such request. If a Fund recalls a Lent Security pursuant to the Lending Agreement, and BNP fails to return the Lent Securities or equivalent securities in a timely fashion, BNP shall remain liable for the ultimate delivery to each Fund’s custodian of such Lent Securities, or equivalent securities, and for any buy-in costs that the executing broker for the sales transaction may impose with respect to the failure to deliver. Should the borrower of the securities fail financially, the Funds have the right to reduce the outstanding amount of the Current Borrowings against which the pledged collateral has been secured. Although risk is mitigated by the collateral, the Funds could experience a delay in recovering their securities and possible loss of income or value if the borrower fails to return the borrowed securities. Under the terms of the Lending Agreement, each Fund shall have the right to apply and set-off an amount equal to one hundred percent (100%) of the then current fair value of such Lent Securities against the Current Borrowings. As of January 31, 2018, the value of the Lent Securities for Clough Global Dividend and Income Fund, Clough Global Equity Fund and Clough Global Opportunities Fund were $47,454,399, $76,238,625 and $182,358,386, respectively.

 

The Board has approved each Agreement and the Lending Agreement. No violations of the Agreement or the Lending Agreement have occurred during the period ended January 31, 2018.

 

 

 

Item 2 - Controls and Procedures.

 

(a)The registrant’s Principal Executive Officer and Principal Financial Officer have evaluated the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of this filing and have concluded that the registrant's disclosure controls and procedures were effective, as of that date.

 

(b)There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting.

 

Item 3 – Exhibits.

 

(a)Separate certifications for the registrant's Principal Executive Officer and Principal Financial Officer, as required by Rule 30a-2(a) under the Investment Company Act of 1940, are attached as Ex99.CERT.

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  CLOUGH GLOBAL EQUITY FUND  
       
  By: /s/ Edmund J. Burke  
    Edmund J. Burke  
    President (Principal Executive Officer)  
       
  Date: March 28, 2018  

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

  By: /s/ Edmund J. Burke  
    Edmund J. Burke  
    President (Principal Executive Officer)  
       
  Date: March 28, 2018  
       
  By: /s/ Jeremy O. May  
    Jeremy O. May  
    Treasurer (Principal Financial Officer)  
       
  Date: March 28, 2018