Clough Global Long/Short Fund
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Table of Contents
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Shareholder Letter
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2
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Portfolio Performance
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4
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Disclosure of Fund Expenses
|
7
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Statement of Investments
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8
|
Statement of Assets and Liabilities
|
12
|
Statement of Operations
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13
|
Statement of Changes in Net Assets
|
14
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Financial Highlights
|
15
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Notes to Financial Statements
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18
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Report of Independent Registered Public Accounting Firm
|
28
|
Additional Information
|
29
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Trustees & Officers
|
30
|
Privacy Policy
|
34
|
Clough Global Long/Short Fund
|
Shareholder Letter
|
October 31, 2016 (Unaudited)
|
2
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www.cloughglobal.com
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Clough Global Long/Short Fund
|
Shareholder Letter
|
October 31, 2016 (Unaudited)
|
Annual Report | October 31, 2016
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3
|
Clough Global Long/Short Fund
|
Portfolio Performance
|
1 Month
|
Quarter
|
1 Year
|
Since Inception†
|
|
Class A ‐ NAV*
|
‐3.80%
|
‐1.88%
|
‐8.68%
|
‐4.07%
|
Class A ‐ MOP*
|
‐9.12%
|
‐7.32%
|
‐13.71%
|
‐6.99%
|
Class C ‐ NAV*
|
‐3.81%
|
‐1.99%
|
‐8.97%
|
‐4.49%
|
Class C ‐ CDSC*
|
‐4.77%
|
‐2.97%
|
‐9.88%
|
‐4.49%
|
Class I ‐ NAV^
|
‐3.69%
|
‐1.78%
|
‐8.39%
|
‐3.76%
|
S&P 500 Total Return Index(a)
|
‐1.82%
|
‐1.67%
|
4.51%
|
3.94%
|
HFRI Equity Hedge Index(b)
|
‐0.80%
|
1.07%
|
2.10%
|
1.26%
|
† |
Fund’s commencement date is September 30, 2015. The performance data quoted for periods prior to September 30, 2015 is that of an unregistered investment fund (the “Predecessor Fund”) that was managed by the Adviser and was reorganized into the Fund as of the date the Fund commenced investment operations. The Predecessor Fund was not a registered mutual fund and therefore was not subject to the same investment and tax restrictions as the Fund. Performance information reflects all fees and expenses incurred by the Predecessor Fund, and has not been adjusted to reflect Fund expenses. If it had been so adjusted, the Predecessor Fund’s performance might have been higher or lower for a given period depending on the amount of such expenses incurred for any given period. The Predecessor Fund commenced operations on January 2, 2015.
|
* |
Returns shown prior to 9/30/2015 are based on the returns of the Predecessor Fund adjusted to reflect 12b-1 fees and shareholder services fees, as applicable.
|
^ |
Returns shown prior to 9/30/2015 are based on the returns of the Predecessor Fund.
|
(a)
|
The Standard & Poor’s composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices. Index performance does not reflect fund performance.
|
(b)
|
An index designed by Hedge Fund Research, Inc. to represent the performance of investment managers who maintain positions both long and short in primarily equity and equity derivative securities. A wide variety of investment processes can be employed by such managers to arrive at an investment decision, including both quantitative and fundamental techniques; strategies can be broadly diversified or narrowly focused on specific sectors and can range broadly in terms of levels of net exposure, leverage employed, holding period, concentrations of market capitalizations and valuation ranges of typical portfolios. The HFRI family of indices reserves the right to revise historical performance data for a period of up to four months following the as of date. The performance shown was calculated using current, available data at the time of publication, but is subject to change outside of the control of the Fund and its affiliates.
|
4
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www.cloughglobal.com
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Clough Global Long/Short Fund
|
Portfolio Performance & Allocation
|
Top Ten Long Holdings (as a % of Net Assets)*
|
|
Liberty Broadband Corp. ‐ Class C
|
2.30%
|
Citigroup, Inc.
|
2.00%
|
Bank of America Corp.
|
2.00%
|
Cable One, Inc.
|
1.87%
|
Alphabet, Inc. ‐ Class C
|
1.86%
|
Blue Nile, Inc.
|
1.78%
|
Ares Capital Corp.
|
1.76%
|
Charter Communications, Inc. ‐ Class A
|
1.66%
|
IMAX Corp.
|
1.59%
|
Amazon.com, Inc.
|
1.23%
|
Top Ten Holdings
|
18.05%
|
* |
Holdings are subject to change
|
Sector Allocation
|
Long Exposure
|
Short Exposure
|
Net Exposure
|
Consumer Discretionary
|
19.5%
|
‐0.7%
|
18.8%
|
Energy
|
15.1%
|
‐5.1%
|
10.0%
|
Information Technology
|
11.7%
|
‐4.1%
|
7.6%
|
Real Estate
|
7.5%
|
0.0%
|
7.5%
|
Financials
|
9.9%
|
‐3.4%
|
6.5%
|
Telecommunication Services
|
1.6%
|
0.0%
|
1.6%
|
Consumer Staples
|
1.8%
|
‐0.5%
|
1.3%
|
Health Care
|
5.7%
|
‐4.5%
|
1.2%
|
ETF‐Index
|
1.2%
|
0.0%
|
1.2%
|
Materials
|
0.7%
|
0.0%
|
0.7%
|
Industrials
|
1.2%
|
‐8.1%
|
‐6.9%
|
Total Investments
|
75.9%
|
‐26.4%
|
49.5%
|
Annual Report | October 31, 2016
|
5
|
Clough Global Long/Short Fund
|
Portfolio Allocation
|
Country Allocation **
|
Long Exposure % TNA
|
Short Exposure % TNA
|
Net Exposure % TNA
|
United States
|
50.1%
|
‐8.1%
|
42.0%
|
China
|
3.4%
|
0.0%
|
3.4%
|
Other Emerging Markets
|
1.7%
|
0.0%
|
1.7%
|
Japan
|
1.4%
|
0.0%
|
1.4%
|
India
|
4.3%
|
‐0.3%
|
4.0%
|
Other Developed Markets
|
1.1%
|
‐0.3%
|
0.8%
|
Europe
|
1.6%
|
‐2.7%
|
‐1.1%
|
Multinational
|
12.2%
|
‐14.9%
|
‐2.7%
|
Total Investments
|
75.8%
|
26.3%
|
49.5%
|
** |
Allocation summaries calculated as percent of total net assets using market value of cash traded securities, notional value of derivative contracts and excluding short-term investments and futures.
|
6
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www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Disclosure of Fund Expenses
|
Beginning
Account Value |
Ending
10/31/16Account Value |
Expense
Ratio(a)(b) |
Expenses Paid
5/1/2016 - 10/31/16(c)During period
|
|
Clough Global Long/Short Fund
|
||||
Class A
|
||||
Actual
|
$ 1,000.00
|
$ 1,007.50
|
2.80%
|
$14.13
|
Hypothetical (5% return before expenses)
|
$ 1,000.00
|
$ 1,011.06
|
2.80%
|
$14.15
|
Class C
|
||||
Actual
|
$ 1,000.00
|
$ 1,004.30
|
3.46%
|
$17.43
|
Hypothetical (5% return before expenses)
|
$ 1,000.00
|
$ 1,007.74
|
3.46%
|
$17.46
|
Class I
|
||||
Actual
|
$ 1,000.00
|
$ 1,009.70
|
2.43%
|
$12.28
|
Hypothetical (5% return before expenses)
|
$ 1,000.00
|
$ 1,012.92
|
2.43%
|
$12.30
|
(a)
|
Expense ratio excluding interest expense and dividends paid on borrowed securities for the Clough Global Long/Short Fund is 1.95%, 2.60% and 1.60% for Class A, Class C and Class I respectively.
|
(b)
|
Annualized, based on the Fund's most recent fiscal half year expenses.
|
(c)
|
Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half-year (184)/366 (to reflect the half-year period).
|
Annual Report | October 31, 2016
|
7
|
Clough Global Long/Short Fund
|
Statement of Investments
|
October 31, 2016
|
Shares
|
Value
|
|||||||
COMMON STOCKS 70.99%
|
||||||||
Consumer Discretionary 18.26%
|
||||||||
Amazon.com, Inc.(a)
|
687
|
$
|
542,606
|
|||||
Blue Nile, Inc.(b)
|
22,561
|
788,056
|
||||||
Byd Co., Ltd. - Class H(a)
|
29,000
|
190,702
|
||||||
Cable One, Inc.(b)
|
1,430
|
824,738
|
||||||
Charter Communications, Inc. - Class A(a)
|
2,936
|
733,677
|
||||||
DR Horton, Inc.(b)
|
13,608
|
392,319
|
||||||
IMAX Corp.(a)
|
23,260
|
703,615
|
||||||
Lennar Corp. - Class A(b)
|
9,901
|
412,773
|
||||||
Liberty Broadband Corp. - Class C(a)(b)
|
15,259
|
1,017,012
|
||||||
Liberty SiriusXM Group - Class C(a)
|
4,271
|
141,754
|
||||||
Liberty Ventures - Series A(a)(b)
|
6,452
|
257,435
|
||||||
Manchester United PLC - Class A
|
11,000
|
167,750
|
||||||
Monro Muffler Brake, Inc.(b)
|
4,300
|
236,500
|
||||||
PulteGroup, Inc.
|
19,600
|
364,560
|
||||||
Restoration Hardware Holdings, Inc.(a)
|
3,900
|
112,983
|
||||||
Service Corp. International
|
8,600
|
220,160
|
||||||
Signet Jewelers, Ltd.
|
2,575
|
209,245
|
||||||
Sony Corp.
|
7,100
|
227,549
|
||||||
TRI Pointe Group, Inc.(a)
|
25,700
|
278,331
|
||||||
Wayfair, Inc. - Class A(a)(b)
|
7,200
|
239,976
|
||||||
8,061,741
|
||||||||
Consumer Staples 0.86%
|
||||||||
B&G Foods, Inc.
|
2,800
|
118,720
|
||||||
TreeHouse Foods, Inc.(a)
|
3,000
|
262,440
|
||||||
381,160
|
||||||||
Energy 15.08%
|
||||||||
Anadarko Petroleum Corp.
|
6,100
|
362,584
|
||||||
Apache Corp.(b)
|
7,900
|
469,892
|
||||||
Concho Resources, Inc.(a)
|
3,450
|
437,943
|
||||||
Continental Resources, Inc.(a)
|
4,100
|
200,531
|
||||||
Devon Energy Corp.(b)
|
9,200
|
348,588
|
||||||
Diamondback Energy, Inc.(a)
|
2,700
|
246,483
|
||||||
Energen Corp.
|
4,400
|
220,572
|
||||||
EOG Resources, Inc.
|
4,800
|
434,016
|
||||||
Halliburton Co.
|
4,900
|
225,400
|
||||||
Helmerich & Payne, Inc.
|
3,500
|
220,885
|
||||||
Matador Resources Co.(a)
|
14,600
|
318,426
|
||||||
Nabors Industries, Ltd.
|
25,500
|
303,450
|
||||||
Newfield Exploration Co.(a)(b)
|
7,100
|
288,189
|
||||||
Parsley Energy, Inc. - Class A(a)
|
12,800
|
421,120
|
||||||
Patterson-UTI Energy, Inc.
|
13,700
|
307,976
|
||||||
Pioneer Natural Resources Co.
|
2,900
|
519,158
|
||||||
Range Resources Corp.
|
10,400
|
351,416
|
||||||
RSP Permian, Inc.(a)
|
4,700
|
169,670
|
Shares
|
Value
|
|||||||
Energy (continued)
|
||||||||
Sanchez Energy Corp.(a)
|
15,500
|
$
|
98,735
|
|||||
Southwestern Energy Co.(a)
|
20,400
|
211,956
|
||||||
The Williams Cos., Inc.
|
900
|
26,280
|
||||||
WPX Energy, Inc.(a)(b)
|
43,600
|
473,496
|
||||||
6,656,766
|
||||||||
Financials 9.17%
|
||||||||
Ares Capital Corp.
|
50,800
|
777,240
|
||||||
Bank of America Corp.(b)
|
53,450
|
881,925
|
||||||
China Everbright, Ltd.
|
60,000
|
117,593
|
||||||
Citigroup, Inc.(b)
|
17,949
|
882,193
|
||||||
Credit Acceptance Corp.(a)
|
2,164
|
398,393
|
||||||
JPMorgan Chase & Co.
|
4,700
|
325,522
|
||||||
Radian Group, Inc.
|
8,400
|
114,156
|
||||||
Solar Capital, Ltd.
|
22,300
|
448,676
|
||||||
Solar Senior Capital, Ltd.
|
6,700
|
103,850
|
||||||
4,049,548
|
||||||||
Health Care 5.69%
|
||||||||
Actelion, Ltd.
|
289
|
41,763
|
||||||
Aduro Biotech, Inc.(a)
|
7,400
|
79,550
|
||||||
Akorn, Inc.(a)
|
5,400
|
129,330
|
||||||
Alder Biopharmaceuticals, Inc.(a)
|
3,100
|
75,175
|
||||||
Allergan PLC(a)
|
320
|
66,861
|
||||||
Amsurg Corp.(a)
|
2,300
|
137,425
|
||||||
Biogen, Inc.(a)
|
345
|
96,662
|
||||||
BioMarin Pharmaceutical, Inc.(a)
|
800
|
64,416
|
||||||
Bristol-Meyers Squibb Co.
|
3,126
|
159,145
|
||||||
Cardiome Pharma Corp.(a)
|
54,000
|
149,040
|
||||||
Celgene Corp.(a)
|
800
|
81,744
|
||||||
Corindus Vascular Robotics, Inc.(a)
|
74,400
|
57,303
|
||||||
CRISPR Therapeutics AG(a)
|
9,800
|
178,850
|
||||||
Dermira, Inc.(a)
|
4,700
|
147,345
|
||||||
Gilead Sciences, Inc.
|
1,900
|
139,897
|
||||||
GW Pharmaceuticals PLC - ADR(a)
|
600
|
70,434
|
||||||
Intrexon Corp.(a)
|
6,000
|
156,600
|
||||||
Ophthotech Corp.(a)(b)
|
3,300
|
118,206
|
||||||
Otonomy, Inc.(a)
|
8,700
|
131,370
|
||||||
Puma Biotechnology, Inc.(a)
|
2,200
|
84,260
|
||||||
Shire PLC - ADR
|
700
|
118,048
|
||||||
TherapeuticsMD, Inc.(a)
|
16,000
|
91,840
|
||||||
Vertex Pharmaceuticals, Inc.(a)
|
1,800
|
136,548
|
||||||
2,511,812
|
||||||||
Industrials 0.89%
|
||||||||
Macquarie Infrastructure Corp.
|
400
|
32,724
|
||||||
Rollins, Inc.(b)
|
9,400
|
289,708
|
||||||
ZTO Express Cayman, Inc. - ADR(a)
|
4,100
|
69,413
|
||||||
391,845
|
8
|
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Statement of Investments
|
October 31, 2016
|
Shares
|
Value
|
|||||||
Information Technology 11.74%
|
||||||||
Alibaba Group Holding, Ltd. - Sponsored ADR(a)
|
3,300
|
$
|
335,577
|
|||||
Alphabet, Inc. - Class C(a)(b)
|
1,047
|
821,413
|
||||||
Apple, Inc.
|
1,740
|
197,560
|
||||||
Broadcom, Ltd.
|
2,025
|
344,817
|
||||||
Crown Castle International Corp.
|
1,800
|
163,782
|
||||||
Ellie Mae, Inc.(a)
|
1,900
|
201,191
|
||||||
Fabrinet(a)
|
5,600
|
212,576
|
||||||
Facebook, Inc. - Class A(a)(b)
|
2,309
|
302,456
|
||||||
HubSpot, Inc.(a)
|
1,800
|
94,410
|
||||||
LINE Corp. - Sponsored ADR(a)
|
2,400
|
97,104
|
||||||
MaxLinear, Inc. - Class A(a)
|
9,400
|
175,874
|
||||||
Microsoft Corp.
|
6,600
|
395,472
|
||||||
Monolithic Power Systems, Inc.
|
2,100
|
165,501
|
||||||
Nintendo Co., Ltd.
|
1,529
|
370,914
|
||||||
ON Semiconductor Corp.(a)
|
19,300
|
225,231
|
||||||
Samsung Electronics Co., Ltd.
|
231
|
330,880
|
||||||
ViaSat, Inc.(a)
|
3,100
|
219,046
|
||||||
WNS Holdings, Ltd. - ADR(a)
|
5,800
|
159,500
|
||||||
Yelp, Inc.(a)
|
11,300
|
369,058
|
||||||
5,182,362
|
||||||||
Materials 0.29%
|
||||||||
Chr Hansen Holding A/S
|
2,160
|
129,361
|
||||||
Real Estate 7.46%
|
||||||||
AGNC Investment Corp.
|
25,300
|
507,518
|
||||||
Annaly Capital Management, Inc.
|
19,900
|
206,164
|
||||||
Blackstone Mortgage Trust, Inc. - Class A
|
6,600
|
199,320
|
||||||
Community Healthcare Trust, Inc.
|
14,700
|
328,986
|
||||||
CYS Investments, Inc.
|
6,700
|
57,754
|
||||||
Iguatemi Empresa de Shopping Centers S.A.
|
11,400
|
107,179
|
||||||
Ladder Capital Corp.
|
10,300
|
130,604
|
||||||
MedEquities Realty Trust, Inc.(a)
|
35,200
|
407,968
|
||||||
MTGE Investment Corp.
|
15,700
|
267,685
|
||||||
PennyMac Mortgage Investment Trust
|
19,800
|
301,356
|
||||||
Starwood Property Trust, Inc.
|
21,600
|
480,384
|
||||||
Two Harbors Investment Corp.
|
35,900
|
299,047
|
||||||
3,293,965
|
||||||||
Telecommunication Services 1.55%
|
||||||||
China Mobile, Ltd.
|
36,500
|
418,155
|
Shares
|
Value
|
|||||||
Telecommunication Services (continued)
|
||||||||
T-Mobile US, Inc.
|
5,400
|
$
|
268,542
|
|||||
686,697
|
||||||||
TOTAL COMMON STOCKS (Cost $29,286,759)
|
31,345,257
|
|||||||
EXCHANGE TRADED FUNDS 1.22%
|
||||||||
iShares® MSCI India ETF
|
6,400
|
185,856
|
||||||
WisdomTree India Earnings Fund
|
16,200
|
351,864
|
||||||
537,720
|
||||||||
TOTAL EXCHANGE TRADED FUNDS (Cost $531,631)
|
537,720
|
|||||||
PARTICIPATION NOTES 0.85%
|
||||||||
Consumer Discretionary 0.44%
|
||||||||
Zhengzhou Yutong Bus Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 10/27/2017(c)
|
61,350
|
195,264
|
||||||
Consumer Staples 0.41%
|
||||||||
Kweichow Moutai Co., Ltd. - Class A (Loan Participation Notes issued by Morgan Stanley Asia Products), expiring 11/09/2017(c)
|
3,825
|
179,618
|
||||||
TOTAL PARTICIPATION NOTES (Cost $326,992)
|
374,882
|
|||||||
SHORT-TERM INVESTMENTS 21.05%
|
||||||||
Money Market Fund 21.05%
|
||||||||
BlackRock Liquidity Funds, T-Fund Portfolio - Institutional Class (0.218% 7-day yield)
|
9,294,999 |
9,294,999
|
||||||
TOTAL SHORT-TERM INVESTMENTS (Cost $9,294,999)
|
9,294,999
|
Annual Report | October 31, 2016
|
9
|
Clough Global Long/Short Fund
|
Statement of Investments
|
October 31, 2016
|
Shares
|
Value
|
|||||||
Total Investments - 94.11%
|
||||||||
(Cost $39,440,381)
|
$
|
41,552,858
|
||||||
Other Assets in Excess of Liabilities - 5.89%(d)
|
2,598,614
|
|||||||
NET ASSETS - 100.00%
|
$
|
44,151,472
|
||||||
SCHEDULE OF SECURITIES SOLD SHORT(a)
|
Shares
|
Value
|
||||||
COMMON STOCKS (22.67%)
|
||||||||
Consumer Discretionary (0.71%)
|
||||||||
Beazer Homes USA, Inc.
|
(9,600
|
)
|
(98,208
|
)
|
||||
Fiat Chrysler Automobiles NV
|
(29,239
|
)
|
(214,088
|
)
|
||||
(312,296
|
)
|
|||||||
Consumer Staples (0.53%)
|
||||||||
Tyson Foods, Inc. - Class A
|
(3,300
|
)
|
(233,805
|
)
|
||||
Energy (3.27%)
|
||||||||
Atwood Oceanics, Inc.
|
(20,400
|
)
|
(155,652
|
)
|
||||
Diamond Offshore Drilling, Inc.
|
(5,200
|
)
|
(85,748
|
)
|
||||
Ensco PLC - Class A
|
(19,300
|
)
|
(150,926
|
)
|
||||
Forum Energy Technologies, Inc.
|
(9,000
|
)
|
(162,000
|
)
|
||||
National Oilwell Varco, Inc.
|
(16,100
|
)
|
(516,810
|
)
|
||||
Noble Corp., PLC
|
(30,700
|
)
|
(151,658
|
)
|
||||
Rowan Cos., PLC - Class A
|
(7,400
|
)
|
(98,198
|
)
|
||||
Transocean, Ltd.
|
(12,600
|
)
|
(121,086
|
)
|
||||
(1,442,078
|
)
|
|||||||
Financials (3.37%)
|
||||||||
Ally Financial, Inc.
|
(14,200
|
)
|
(256,594
|
)
|
||||
American Express Co.
|
(8,400
|
)
|
(557,928
|
)
|
||||
Capital One Financial Corp.
|
(3,100
|
)
|
(229,524
|
)
|
||||
Deutsche Bank AG
|
(13,300
|
)
|
(191,387
|
)
|
||||
Intesa Sanpaolo SpA
|
(20,715
|
|
(47,981
|
)
|
||||
Navient Corp.
|
(16,100
|
)
|
(205,758
|
)
|
||||
(1,489,172
|
)
|
|||||||
Health Care (2.62%)
|
||||||||
AmerisourceBergen Corp.
|
(2,100
|
)
|
(147,672
|
)
|
||||
ANI Pharmaceuticals, Inc.
|
(2,000
|
)
|
(119,400
|
)
|
||||
Bruker Corp.
|
(4,600
|
)
|
(94,254
|
)
|
||||
Eli Lilly & Co.
|
(3,600
|
)
|
(265,824
|
)
|
||||
Express Scripts Holding Co.
|
(2,000
|
)
|
(134,800
|
)
|
||||
Lannett Co., Inc.
|
(4,200
|
)
|
(91,980
|
)
|
||||
Mallinckrodt PLC
|
(2,300
|
)
|
(136,298
|
)
|
||||
McKesson Corp.
|
(800
|
)
|
(101,736
|
)
|
||||
ResMed, Inc.
|
(1,100
|
)
|
(65,747
|
)
|
||||
(1,157,711 | ) |
SCHEDULE OF SECURITIES SOLD SHORT(a) (continued)
|
Shares
|
Value
|
||||||
Industrials (8.06%)
|
||||||||
The Boeing Co.
|
(6,500
|
)
|
$
|
(925,795
|
)
|
|||
Carillion PLC
|
(29,000
|
)
|
(89,131
|
)
|
||||
Caterpillar, Inc.
|
(11,020
|
)
|
(919,729
|
)
|
||||
Deutsche Lufthansa AG
|
(8,748
|
)
|
(111,828
|
)
|
||||
Emerson Electric Co.
|
(8,000
|
)
|
(405,440
|
)
|
||||
Jacobs Engineering Group, Inc.
|
(1,900
|
)
|
(98,002
|
)
|
||||
Metso OYJ
|
(8,893
|
)
|
(233,319
|
)
|
||||
Sandvik AB
|
(26,177
|
)
|
(297,645
|
)
|
||||
Sembcorp Industries, Ltd.
|
(72,100
|
)
|
(131,114
|
)
|
||||
United Rentals, Inc.
|
(3,300
|
)
|
(249,678
|
)
|
||||
WW Grainger, Inc.
|
(473
|
)
|
(98,441
|
)
|
||||
(3,560,122
|
)
|
|||||||
Information Technology (4.11%)
|
||||||||
Accenture PLC - Class A
|
(2,500
|
)
|
(290,600
|
)
|
||||
First Data Corp. - Class A
|
(8,850
|
)
|
(123,812
|
)
|
||||
Infosys Technologies, Ltd. - Sponsored ADR
|
(9,400
|
)
|
(143,444
|
)
|
||||
International Business Machines Corp.
|
(5,915
|
)
|
(909,076
|
)
|
||||
Luxoft Holding, Inc.
|
(3,100
|
)
|
(164,300
|
)
|
||||
Mobileye NV
|
(3,000
|
)
|
(111,540
|
)
|
||||
NCR Corp.
|
(2,000
|
)
|
(70,100
|
)
|
||||
(1,812,872
|
)
|
|||||||
TOTAL COMMON STOCKS (Proceeds $10,367,871)
|
(10,008,056
|
)
|
||||||
EXCHANGE TRADED FUNDS (3.65%)
|
||||||||
Health Care Select Sector SPDR® Fund
|
(6,300
|
)
|
(424,368
|
)
|
||||
SPDR® S&P® Biotech ETF
|
(6,900
|
)
|
(387,435
|
)
|
||||
SPDR® S&P® Oil & Gas Exploration & Production ETF
|
(12,200
|
)
|
(431,270
|
)
|
||||
VanEck Vectors® Oil Services ETF
|
(13,100
|
)
|
(367,717
|
)
|
||||
TOTAL EXCHANGE TRADED FUNDS (Proceeds $1,704,473)
|
(1,610,790
|
)
|
||||||
TOTAL SECURITIES SOLD SHORT (Proceeds $12,072,344)
|
$
|
(11,618,846
|
)
|
(a)
|
Non-income producing security.
|
(b)
|
Pledged security; a portion or all of the security is pledged as collateral for total return swap contracts and securities sold short. As of October 31, 2016, the aggregate market value of those securities was $4,901,956, representing 11.10% of net assets. (See Note 1)
|
10 |
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Statement of Investments
|
October 31, 2016
|
(c)
|
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 October 31, 2016, the aggregate market value of those securites was $374,882 or 0.85% of net assets.
|
(d)
|
Includes cash which is being held as collateral for futures contracts.
|
Description
|
Position
|
Contracts
|
Expiration
Date
|
Underlying Face
Amount at Value
|
Unrealized
Appreciation
|
||||||||||
Foreign Currency Contracts
|
|||||||||||||||
Japanese Yen Currency Futures
|
Short
|
6
|
12/19/2016
|
$
|
(715,913
|
)
|
$
|
15,429
|
|||||||
|
$
|
(715,913
|
)
|
$
|
15,429
|
Counter Party
|
Reference Entity/Obligation
|
Notional
Amount
|
Floating Rate
Paid by the Fund
|
Floating
Rate Index
|
Termination
Date
|
Net Unrealized
Appreciation
|
|||||||||
Morgan Stanley
|
Housing Development Finance Corp.
|
$
|
156,883
|
225 bps + 1D FEDEF
|
1 D FEDEF
|
07/12/2018
|
$
|
7,523
|
|||||||
Morgan Stanley
|
ITC, Ltd.
|
226,334
|
225 bps + 1D FEDEF
|
1 D FEDEF
|
07/12/2018
|
2,527
|
|||||||||
Morgan Stanley
|
Ultratech Cement, Ltd.
|
152,448
|
225 bps + 1D FEDEF
|
1 D FEDEF
|
07/12/2018
|
22,711
|
|||||||||
$
|
535,665
|
$
|
32,761
|
Counter Party
|
Reference Entity/Obligation
|
Notional
Amount
|
Floating Rate
Paid by the Fund |
Floating
Rate Index |
Termination
Date
|
Net Unrealized
Depreciation
|
|||||||||
Morgan Stanley
|
Axis Bank, Ltd.
|
$
|
154,223
|
225 bps + 1D FEDEF
|
1 D FEDEF
|
07/12/2018
|
$
|
(18,930
|
)
|
||||||
Morgan Stanley
|
Hero MotoCorp, Ltd.
|
179,713
|
225 bps + 1D FEDEF
|
1 D FEDEF
|
07/12/2018
|
(9,445
|
)
|
||||||||
Morgan Stanley
|
Larsen & Toubro, Ltd.
|
151,478
|
225 bps + 1D FEDEF
|
1 D FEDEF
|
07/12/2018
|
(6,940
|
)
|
||||||||
Morgan Stanley
|
Mahindra & Mahindra, Ltd.
|
179,721
|
225 bps + 1D FEDEF
|
1 D FEDEF
|
07/12/2018
|
(12,532
|
)
|
||||||||
665,135
|
(47,847
|
)
|
|||||||||||||
$
|
1,200,800
|
$
|
(15,086
|
)
|
Annual Report | October 31, 2016
|
11
|
Clough Global Long/Short Fund
|
Statement of Assets and Liabilities
|
ASSETS:
|
||||
Investments, at value (Cost ‐ see below)
|
$
|
41,552,858
|
||
Cash
|
21,229
|
|||
Foreign currency, at value (Cost $169,518)
|
168,447
|
|||
Variation margin receivable
|
1,350
|
|||
Deposit with broker for futures contracts
|
29,700
|
|||
Deposit with broker for securities sold short and total return swap contracts
|
12,031,191
|
|||
Unrealized appreciation on total return swap contracts
|
32,761
|
|||
Dividends receivable
|
26,227
|
|||
Interest receivable
|
1,033
|
|||
Receivable for investments sold
|
3,479,835
|
|||
Prepaid expenses and other assets
|
20,223
|
|||
Due from Adviser
|
32,960
|
|||
Total Assets
|
57,397,814
|
|||
LIABILITIES:
|
||||
Securities sold short (Proceeds $12,072,344)
|
11,618,846
|
|||
Payable for investments purchased
|
1,376,393
|
|||
Unrealized depreciation on total return swap contracts
|
47,847
|
|||
Dividends payable ‐ short sales
|
22,800
|
|||
Interest payable ‐ margin account
|
7,510
|
|||
Accrued distribution and service fees
|
113
|
|||
Accrued legal expense
|
87,661
|
|||
Accrued administration fee
|
14,838
|
|||
Accrued trustees fee
|
2,193
|
|||
Other payables and accrued expenses
|
68,141
|
|||
Total Liabilities
|
13,246,342
|
|||
Net Assets
|
$
|
44,151,472
|
||
Cost of Investments
|
$
|
39,440,381
|
||
COMPOSITION OF NET ASSETS:
|
||||
Paid‐in capital
|
$
|
47,129,830
|
||
Accumulated net investment loss
|
(317,399
|
)
|
||
Accumulated net realized loss
|
(5,225,288
|
)
|
||
Net unrealized appreciation
|
2,564,329
|
|||
Net Assets
|
$
|
44,151,472
|
||
PRICING OF CLASS A SHARES:
|
||||
Net Assets
|
$
|
75,528
|
||
Shares outstanding of no par value, unlimited shares authorized
|
8,059
|
|||
Net Asset Value, offering and redemption price per share
|
$
|
9.37
|
||
Maximum offering price per share (NAV/0.945), based on maximum sales charge of 5.50% of the offering price
|
$
|
9.92
|
||
PRICING OF CLASS C SHARES:
|
||||
Net Assets
|
$
|
73,262
|
||
Shares outstanding of no par value, unlimited shares authorized
|
7,843
|
|||
Net Asset Value, offering and redemption price per share
|
$
|
9.34
|
||
PRICING OF CLASS I SHARES:
|
||||
Net Assets
|
$
|
44,002,682
|
||
Shares outstanding of no par value, unlimited shares authorized
|
4,681,053
|
|||
Net Asset Value, offering and redemption price per share
|
$
|
9.40
|
12
|
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Statement of Operations
|
INVESTMENT INCOME:
|
||||
Dividends (net of foreign withholding taxes of $4,939)
|
$
|
517,703
|
||
Total Income
|
517,703
|
|||
EXPENSES:
|
||||
Investment advisory fee
|
579,057
|
|||
Distribution and shareholder service fees:
|
||||
Class A
|
119
|
|||
Class C
|
572
|
|||
Administration fee
|
72,878
|
|||
Interest expense ‐ margin account
|
67,460
|
|||
Trustees fee
|
101,187
|
|||
Dividend expense ‐ short sales
|
319,381
|
|||
Custodian fee
|
59,923
|
|||
Audit & Tax Services fees
|
43,000
|
|||
Legal fee
|
156,969
|
|||
Offering costs expense
|
123,210
|
|||
Printing fee
|
3,288
|
|||
Insurance fee
|
25,823
|
|||
Transfer agent fee
|
15,177
|
|||
Other expenses
|
44,213
|
|||
Total Expenses Before Waivers and/or Reimbursements
|
1,612,257
|
|||
Less fees waived and/or reimbursed by Adviser:
|
||||
Class A
|
(470
|
)
|
||
Class C
|
(734
|
)
|
||
Class I
|
(537,227
|
)
|
||
Net Expenses
|
1,073,826
|
|||
Net Investment Loss
|
(556,123
|
)
|
||
NET REALIZED GAIN/(LOSS) ON:
|
||||
Investment securities
|
(3,080,632
|
)
|
||
Futures contracts
|
(68,704
|
)
|
||
Securities sold short
|
(1,737,038
|
)
|
||
Total return swap contracts
|
(103,767
|
)
|
||
Foreign currency transactions
|
(12,525
|
)
|
||
Net realized loss
|
(5,002,666
|
)
|
||
NET CHANGE IN UNREALIZED APPRECIATION/(DEPRECIATION) ON:
|
||||
Investment securities
|
1,055,616
|
|||
Futures contracts
|
6,905
|
|||
Securities sold short
|
808,625
|
|||
Total return swap contracts
|
(17,543
|
)
|
||
Translation of assets and liabilities denominated in foreign currencies
|
(1,967
|
)
|
||
Net change in unrealized appreciation
|
1,851,636
|
|||
Net realized and unrealized loss
|
(3,151,030
|
)
|
||
Net Decrease in Net Assets from Operations
|
$
|
(3,707,153
|
)
|
Annual Report | October 31, 2016
|
13
|
Clough Global Long/Short Fund
|
Statement of Changes in Net Assets
|
For the
Year Ended2016 |
For the
Period Ended2015(a)(b) |
|||||||
OPERATIONS:
|
||||||||
Net investment loss
|
$
|
(556,123
|
)
|
$
|
(41,745
|
)
|
||
Net realized gain/(loss)
|
(5,002,666
|
)
|
20,303
|
|||||
Net change in unrealized appreciation/(depreciation)
|
1,851,636
|
712,693
|
||||||
Net Increase/(Decrease) in Net Assets From Operations
|
(3,707,153
|
)
|
691,251
|
|||||
DISTRIBUTIONS TO COMMON SHAREHOLDERS:
|
||||||||
Class A
|
||||||||
Net realized gains
|
(100
|
)
|
–
|
|||||
Net Decrease in Net Assets from Distributions
|
(100
|
)
|
–
|
|||||
Class C
|
||||||||
Net realized gains
|
(96
|
)
|
–
|
|||||
Net Decrease in Net Assets from Distributions
|
(96
|
)
|
–
|
|||||
Class I
|
||||||||
Net realized gains
|
(152,783
|
)
|
–
|
|||||
Net Decrease in Net Assets from Distributions
|
(152,783
|
)
|
–
|
|||||
CAPITAL SHARE TRANSACTIONS:
|
||||||||
Class A
|
||||||||
Proceeds from shares sold/proceeds from subscription in‐kind
|
52,168
|
25,994
|
||||||
Net asset value of shares issued in reinvestment of distributions to shareholders
|
100
|
–
|
||||||
Payments for shares redeemed, net of redemption fees
|
(48
|
)
|
–
|
|||||
Net Increase in Net Assets From Class A Capital Share Transactions
|
52,220
|
25,994
|
||||||
Class C
|
||||||||
Proceeds from shares sold
|
49,300
|
25,000
|
||||||
Net asset value of shares issued in reinvestment of distributions to shareholders
|
96
|
–
|
||||||
Net Increase in Net Assets From Class C Capital Share Transactions
|
49,396
|
25,000
|
||||||
Class I
|
||||||||
Proceeds from shares sold/proceeds from subscription in‐kind
|
18,945,076
|
35,069,887
|
||||||
Net asset value of shares issued in reinvestment of distributions to shareholders
|
152,783
|
–
|
||||||
Payments for shares redeemed
|
(7,000,003
|
)
|
–
|
|||||
Net Increase in Net Assets From Class I Capital Share Transactions
|
12,097,856
|
35,069,887
|
||||||
Total Increase in Net Assets
|
$
|
8,339,340
|
$
|
35,812,132
|
||||
NET ASSETS:
|
||||||||
Beginning of period
|
35,812,132
|
–
|
||||||
End of period*
|
$
|
44,151,472
|
$
|
35,812,132
|
||||
*Includes accumulated net investment loss of:
|
$
|
(317,399
|
)
|
$
|
(2,644
|
)
|
(a)
|
Commencement of Operations September 30, 2015.
|
(b)
|
At and prior to October 31, 2015, the Fund presented realized gain/(loss) and unrealized appreciation/(depreciation) by investment type. This change in presentation was made to conform to industry standards and had no effect on the Fund's change in net assets.
|
14
|
www.cloughglobal.com
|
Clough Global Long/Short Fund – Class A
|
Financial Highlights
|
For the Year
Ended |
For the Period
September 30, 2015 |
|||||||
PER SHARE OPERATING PERFORMANCE:
|
||||||||
NET ASSET VALUE, BEGINNING OF PERIOD
|
$
|
10.30
|
$
|
10.00
|
||||
INCOME/(LOSS) FROM OPERATIONS:
|
||||||||
Net investment loss(a)
|
(0.15
|
)
|
(0.02
|
)
|
||||
Net realized and unrealized gain/(loss) on investments
|
(0.74
|
)
|
0.32
|
|||||
Total from Investment Operations
|
(0.89
|
)
|
0.30
|
|||||
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
|
||||||||
Net realized gains
|
(0.04
|
)
|
–
|
|||||
Total Distributions to Common Shareholders
|
(0.04
|
)
|
–
|
|||||
Net asset value ‐ end of period
|
$
|
9.37
|
$
|
10.30
|
||||
Total Investment Return ‐ Net Asset Value(b)
|
(8.68
|
)%
|
3.00
|
%
|
||||
RATIOS AND SUPPLEMENTAL DATA:
|
||||||||
Net assets attributable to common shares, end of period (in 000s)
|
$
|
76
|
$
|
27
|
||||
RATIOS TO AVERAGE NET ASSETS (including interest expense and dividend expense on securities sold short)
|
||||||||
Operating expenses excluding fee waivers/reimbursements(c)
|
4.23
|
%
|
6.44
|
%(d)
|
||||
Operating expenses including fee waivers/reimbursements(c)
|
2.85
|
%
|
2.67
|
%(d)
|
||||
Net investment loss including fee waivers/reimbursements(c)
|
(1.57
|
)%
|
(2.00
|
)%(d)
|
||||
RATIOS TO AVERAGE NET ASSETS (excluding interest expense and dividend expense on securities sold short)
|
||||||||
Operating expenses excluding fee waivers/reimbursements(c)
|
3.33
|
%
|
5.72
|
%(d)
|
||||
Operating expenses including fee waivers/reimbursements(c)
|
1.95
|
%
|
1.95
|
%(d)
|
||||
Net investment loss including fee waivers/reimbursements(c)
|
(0.67
|
)%
|
(1.28
|
)%(d)
|
||||
PORTFOLIO TURNOVER RATE(e)
|
261
|
%
|
22
|
%
|
(a)
|
Per share amounts are based upon average shares outstanding.
|
(b)
|
Total investment return is for the period indicated and has not been annualized. The total investment return would have been lower had certain expenses not been waived / reimbursed during the period. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total investment return does not reflect the effect of sales charge.
|
(c)
|
Expense ratios before reductions for startup periods may not be representative of longer term operating periods.
|
(d)
|
Annualized.
|
(e)
|
Portfolio turnover rate for periods less than one full year have not been annualized and is calculated at the Fund level.
|
Annual Report | October 31, 2016
|
15
|
Clough Global Long/Short Fund – Class C
|
Financial Highlights
|
For the Year
Ended |
For the Period
September 30, 2015 |
|||||||
PER SHARE OPERATING PERFORMANCE:
|
||||||||
NET ASSET VALUE, BEGINNING OF PERIOD
|
$
|
10.30
|
$
|
10.00
|
||||
INCOME/(LOSS) FROM OPERATIONS:
|
||||||||
Net investment loss(a)
|
(0.21
|
)
|
(0.02
|
)
|
||||
Net realized and unrealized gain/(loss) on investments
|
(0.71
|
)
|
0.32
|
|||||
Total from Investment Operations
|
(0.92
|
)
|
0.30
|
|||||
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
|
||||||||
Net realized gains
|
(0.04
|
)
|
–
|
|||||
Total Distributions to Common Shareholders
|
(0.04
|
)
|
–
|
|||||
Net asset value ‐ end of period
|
$
|
9.34
|
$
|
10.30
|
||||
Total Investment Return ‐ Net Asset Value(b)
|
(8.97
|
)%
|
3.00
|
%
|
||||
RATIOS AND SUPPLEMENTAL DATA:
|
||||||||
Net assets attributable to common shares, end of period (in 000s)
|
$
|
73
|
$
|
26
|
||||
RATIOS TO AVERAGE NET ASSETS (including interest expense and dividend expense on securities sold short)
|
||||||||
Operating expenses excluding fee waivers/reimbursements(c)
|
4.78
|
%
|
7.09
|
%(d)
|
||||
Operating expenses including fee waivers/reimbursements(c)
|
3.50
|
%
|
3.32
|
%(d)
|
||||
Net investment loss including fee waivers/reimbursements(c)
|
(2.19
|
)%
|
(2.66
|
)%(d)
|
||||
RATIOS TO AVERAGE NET ASSETS (excluding interest expense and dividend expense on securities sold short)
|
||||||||
Operating expenses excluding fee waivers/reimbursements(c)
|
3.88
|
%
|
6.37
|
%(d)
|
||||
Operating expenses including fee waivers/reimbursements(c)
|
2.60
|
%
|
2.60
|
%(d)
|
||||
Net investment loss including fee waivers/reimbursements(c)
|
(1.29
|
)%
|
(1.94
|
)%(d)
|
||||
PORTFOLIO TURNOVER RATE(e)
|
261
|
%
|
22
|
%
|
(a)
|
Per share amounts are based upon average shares outstanding.
|
(b)
|
Total investment return is for the period indicated and has not been annualized. The total investment return would have been lower had certain expenses not been waived / reimbursed during the period. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Total investment return does not reflect the effect of sales charge.
|
(c)
|
Expense ratios before reductions for startup periods may not be representative of longer term operating periods.
|
(d)
|
Annualized.
|
(e)
|
Portfolio turnover rate for periods less than one full year have not been annualized and is calculated at the Fund level.
|
16
|
www.cloughglobal.com
|
Clough Global Long/Short Fund – Class I
|
Financial Highlights
|
For the Year
Ended |
For the Period
September 30, 2015 |
|||||||
PER SHARE OPERATING PERFORMANCE:
|
||||||||
NET ASSET VALUE, BEGINNING OF PERIOD
|
$
|
10.30
|
$
|
10.00
|
||||
INCOME/(LOSS) FROM OPERATIONS:
|
||||||||
Net investment loss(a)
|
(0.12
|
)
|
(0.01
|
)
|
||||
Net realized and unrealized gain/(loss) on investments
|
(0.74
|
)
|
0.31
|
|||||
Total from Investment Operations
|
(0.86
|
)
|
0.30
|
|||||
DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:
|
||||||||
Net realized gains
|
(0.04
|
)
|
–
|
|||||
Total Distributions to Common Shareholders
|
(0.04
|
)
|
–
|
|||||
Net asset value ‐ end of period
|
$
|
9.40
|
$
|
10.30
|
||||
Total Investment Return ‐ Net Asset Value(b)
|
(8.39
|
)%
|
3.00
|
%
|
||||
RATIOS AND SUPPLEMENTAL DATA:
|
||||||||
Net assets attributable to common shares, end of period (in 000s)
|
$
|
44,003
|
$
|
35,760
|
||||
RATIOS TO AVERAGE NET ASSETS (including interest expense and dividend expense on securities sold short)
|
||||||||
Operating expenses excluding fee waivers/reimbursements(c)
|
3.76
|
%
|
5.62
|
%(d)
|
||||
Operating expenses including fee waivers/reimbursements(c)
|
2.50
|
%
|
2.32
|
%(d)
|
||||
Net investment loss including fee waivers/reimbursements(c)
|
(1.30
|
)%
|
(1.66
|
)%(d)
|
||||
RATIOS TO AVERAGE NET ASSETS (excluding interest expense and dividend expense on securities sold short)
|
||||||||
Operating expenses excluding fee waivers/reimbursements(c)
|
2.86
|
%
|
4.90
|
%(d)
|
||||
Operating expenses including fee waivers/reimbursements(c)
|
1.60
|
%
|
1.60
|
%(d)
|
||||
Net investment loss including fee waivers/reimbursements(c)
|
(0.40
|
)%
|
(0.94
|
)%(d)
|
||||
PORTFOLIO TURNOVER RATE(e)
|
261
|
%
|
22
|
%
|
(a)
|
Per share amounts are based upon average shares outstanding.
|
(b)
|
Total investment return is for the period indicated and has not been annualized. The total investment return would have been lower had certain expenses not been waived / reimbursed during the period. The return shown does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.
|
(c)
|
Expense ratios before reductions for startup periods may not be representative of longer term operating periods.
|
(d)
|
Annualized.
|
(e)
|
Portfolio turnover rate for periods less than one full year have not been annualized and is calculated at the Fund level.
|
Annual Report | October 31, 2016
|
17
|
Clough Global Long/Short Fund
|
Notes to Financial Statements
|
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;
|
18
|
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Notes to Financial Statements
|
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.
|
Investments in Securities at Value*
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Common Stocks
|
$
|
31,345,257
|
$
|
–
|
$
|
–
|
$
|
31,345,257
|
||||||||
Exchange Traded Funds
|
537,720
|
–
|
–
|
537,720
|
||||||||||||
Participation Notes
|
–
|
374,882
|
–
|
374,882
|
||||||||||||
Short‐Term Investments
|
||||||||||||||||
Money Market Fund
|
9,294,999
|
–
|
–
|
9,294,999
|
||||||||||||
TOTAL
|
$
|
41,177,976
|
$
|
374,882
|
$
|
–
|
$
|
41,552,858
|
||||||||
Other Financial Instruments
|
||||||||||||||||
Assets
|
||||||||||||||||
Futures Contracts**
|
$
|
15,429
|
$
|
–
|
$
|
–
|
$
|
15,429
|
||||||||
Total Return Swap Contracts**
|
–
|
32,761
|
–
|
32,761
|
||||||||||||
Liabilities
|
||||||||||||||||
Securities Sold Short
|
||||||||||||||||
Common Stocks
|
(10,008,056
|
)
|
–
|
–
|
(10,008,056
|
)
|
||||||||||
Exchange Traded Funds
|
(1,610,790
|
)
|
–
|
–
|
(1,610,790
|
)
|
||||||||||
Total Return Swap Contracts**
|
–
|
(47,847
|
)
|
–
|
(47,847
|
)
|
||||||||||
TOTAL
|
$
|
(11,603,417
|
)
|
$
|
(15,086
|
)
|
$
|
–
|
$
|
(11,618,503
|
)
|
* |
For detailed sector descriptions, see the accompanying Statement of Investments.
|
** |
Swap contracts and futures contracts are reported at their unrealized appreciation/(depreciation) at measurement date, which represents the change in the contract's value from trade date.
|
Annual Report | October 31, 2016
|
19
|
Clough Global Long/Short Fund
|
Notes to Financial Statements
|
20
|
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Notes to Financial Statements
|
Annual Report | October 31, 2016
|
21
|
Clough Global Long/Short Fund
|
Notes to Financial Statements
|
Asset Derivatives
|
|||||
Risk Exposure
|
Statements of Assets and Liabilities Location
|
Fair Value
|
|||
Foreign Currency Contracts (Futures Contracts)
|
Variation margin receivable
|
$
|
15,429
|
(a)
|
|
Equity Contracts (Total Return Swap Contracts)
|
Unrealized appreciation on total return swap contracts
|
32,761
|
|||
Total
|
$
|
48,190
|
|||
Liability Derivatives
|
|||||
Risk Exposure
|
Statements of Assets and Liabilities Location
|
Fair Value
|
|||
Equity Contracts (Total Return Swap Contracts)
|
Unrealized depreciation on total return swap contracts
|
$
|
47,847
|
||
Total
|
$
|
47,847
|
(a)
|
Includes cumulative appreciation of futures contracts as reported in the Statement of Investments. Only the current day's net variation margin is reported within the Statement of Assets and Liabilities.
|
22
|
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Notes to Financial Statements
|
Risk Exposure
|
Statements of Operations Location
|
Realized
Gain/(Loss) on Derivatives Recognized in Income |
Change in
Unrealized Appreciation/
(Depreciation) on Derivatives Recognized in Income |
||||||
Foreign Currency Contracts
(Futures Contracts) |
Net realized gain/(loss) on futures contracts/Net change in unrealized appreciation/(depreciation) on futures contracts
|
$
|
(68,704
|
)
|
$
|
6,905
|
|||
Equity Contracts
(Total Return Swap Contracts) |
Net realized gain/(loss) on total return swap contracts/Net change in unrealized appreciation/(depreciation) on total return swap contracts
|
(103,767
|
)
|
(17,543
|
)
|
||||
Total
|
$
|
(172,471
|
)
|
$
|
(10,638
|
)
|
Offsetting of Derivatives Assets
|
||||||||||||||||||||||||
Gross Amounts Not Offset in the Statements of Assets and Liabilities |
||||||||||||||||||||||||
Description
|
Gross Amounts of Recognized Assets
|
Gross Amounts Offset in the Statements of Assets and Liabilities
|
Net Amounts Presented in the Statements of Assets and Liabilities
|
Financial
Instruments (a) |
Cash Collateral
Pledged |
Net Amount
|
||||||||||||||||||
Total Return Swap Contracts
|
$
|
32,761
|
$
|
–
|
$
|
32,761
|
$
|
(32,761
|
)
|
$
|
–
|
$
|
–
|
|||||||||||
Total
|
$
|
32,761
|
$
|
–
|
$
|
32,761
|
$
|
(32,761
|
)
|
$
|
–
|
$
|
–
|
Annual Report | October 31, 2016
|
23
|
Clough Global Long/Short Fund
|
Notes to Financial Statements
|
Offsetting of Derivatives Liabilities
|
||||||||||||||||||||||||
Gross Amounts Not
Offset in the Statements of
Assets and Liabilities |
||||||||||||||||||||||||
Description
|
Gross Amounts of Recognized Liabilities
|
Gross Amounts Offset in the Statements of Assets and Liabilities
|
Net Amounts Presented in the Statements of Assets and Liabilities
|
Financial
Instruments (a) |
Cash Collateral
Pledged(a) |
Net Amount
|
||||||||||||||||||
Total Return Swap Contracts
|
$
|
47,847
|
$
|
–
|
$
|
47,847
|
$
|
(47,847
|
)
|
$
|
–
|
$
|
–
|
|||||||||||
Total
|
$
|
47,847
|
$
|
–
|
$
|
47,847
|
$
|
(47,847
|
)
|
$
|
–
|
$
|
–
|
(a)
|
These amounts are limited to the derivative asset/liability balance and, accordingly, do not include excess collateral received/pledged which is disclosed in the Statement of Investments.
|
Ordinary Income
|
Long-Term Capital Gains
|
Total
|
||||||||||
October 31, 2016
|
$
|
146,946
|
$
|
6,033
|
$
|
152,979
|
||||||
October 31, 2015
|
–
|
–
|
–
|
24
|
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Notes to Financial Statements
|
Undistributed Ordinary Income
|
Accumulated
Capital Loss
|
Paid-in Capital
|
||||||||||
$
|
241,368
|
$
|
(32,564
|
)
|
$
|
(208,804
|
)
|
Undistributed ordinary income
|
$
|
–
|
||
Accumulated net realized loss on investments
|
(3,920,685
|
)
|
||
Net unrealized appreciation on investments
|
1,233,505
|
|||
Other accumulated losses
|
(291,178
|
)
|
||
Total
|
$
|
(2,978,358
|
)
|
Gross appreciation (excess of value over tax cost)
|
$
|
2,483,805
|
||
Gross depreciation (excess of tax cost over value)
|
(1,702,152
|
)
|
||
Net appreciation (excess of tax cost over value) of foreign currency and derivatives
|
451,852
|
|||
Net unrealized appreciation
|
$
|
1,233,505
|
||
Cost of investments for income tax purposes
|
$
|
40,771,205
|
Annual Report | October 31, 2016
|
25
|
Clough Global Long/Short Fund
|
Notes to Financial Statements
|
For the Year Ended
October 31, 2016 |
For the Period September 30, 2015 (commencement) to
October 31, 2015 |
|||||||
Class A:
|
||||||||
Beginning of period
|
2,600
|
–
|
||||||
Shares sold
|
5,454
|
2,600
|
||||||
Distributions reinvested
|
10
|
–
|
||||||
Shares redeemed
|
(5
|
)
|
–
|
|||||
Net increase in shares outstanding
|
5,459
|
2,600
|
||||||
Shares outstanding, end of period
|
8,059
|
2,600
|
||||||
Class C:
|
||||||||
Beginning of period
|
2,500
|
–
|
||||||
Shares sold
|
5,333
|
2,500
|
||||||
Distributions reinvested
|
10
|
–
|
||||||
Net increase in shares outstanding
|
5,343
|
2,500
|
||||||
Shares outstanding, end of period
|
7,843
|
2,500
|
||||||
Class I:
|
||||||||
Beginning of period
|
3,472,903
|
–
|
||||||
Shares sold
|
1,899,988
|
3,472,903
|
||||||
Distributions reinvested
|
15,233
|
–
|
||||||
Shares redeemed
|
(707,071
|
)
|
–
|
|||||
Net increase in shares outstanding
|
1,208,150
|
3,472,903
|
||||||
Shares outstanding, end of period
|
4,681,053
|
3,472,903
|
Cost of Investments Purchased
|
Proceeds From Investments Sold
|
|||||||
$
|
98,187,598
|
$
|
93,649,576
|
Expires in 2018
|
Expires in 2019
|
Total
|
||||||||||
Class A
|
$
|
(85
|
)
|
$
|
(470
|
)
|
$
|
(555
|
)
|
|||
Class C
|
$
|
(82
|
)
|
$
|
(734
|
)
|
$
|
(816
|
)
|
|||
Class I
|
$
|
(83,042
|
)
|
$
|
(537,227
|
)
|
$
|
(620,269
|
)
|
26
|
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Notes to Financial Statements
|
Annual Report | October 31, 2016
|
27
|
28
|
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Additional Information
|
QDI
|
DRD
|
|
Clough Global Long/Short Fund
|
21.93%
|
26.85%
|
Annual Report | October 31, 2016
|
29
|
Clough Global Long/Short Fund
|
Trustees & Officers
|
October 31, 2016 (Unaudited)
|
Name, Address*
& Year of Birth |
Position(s) Held
with Trust |
Term of Office
and Length of
Time Served** |
Principal Occupation(s)
During Past 5 Years |
Number of Funds in Fund Complex Overseen by Trustee***
|
Other Directorships Held by Trustee During Past 5 Years**
|
Independent Trustees
|
|||||
Jeremy W. Deems
1976 |
Trustee
|
Since 2015
|
Mr. Deems is the Co-Founder, Chief Compliance Officer and Chief Financial Officer of Green Alpha Advisors, LLC, a registered investment advisor, and Co-Portfolio Manager of the Shelton Green Alpha Fund. Prior to joining Green Alpha Advisors, Mr. Deems was CFO and Treasurer of Forward Management, LLC, ReFlow Management Co., LLC, ReFlow Fund, LLC, a private investment fund, and Sutton Place Management, LLC (an administrative services company) from 1998 to June 2007. From 2004 to 2005, Mr. Deems also served as Treasurer of the Forward Funds and the Sierra Club Funds.
|
2
|
Mr. Deems is a Trustee of ALPS ETF Trust (21 funds); ALPS Variable Investment Trust (10 funds); Financial Investors Trust (31 funds); Reaves Utility Income Fund (1 fund); and Elevation ETF Trust (2 funds).
|
James M. Maxwell
1954 |
Trustee
|
Since 2015
|
Mr. Maxwell is President of SPAD Associates (a private investigation and consulting company). Prior to joining SPAD Associates, he was the Vice President of Corporate Security for Credit Suisse from 2006 to 2008. Previously, he was a Special Agent with the Federal Bureau of Investigation from 1982 to 2006.
|
1
|
None
|
Clifford J. Weber
1963 |
Trustee
|
Since 2015
|
Mr. Weber is the founder of Financial Products Consulting Group, LLC (a consulting firm). Prior to starting Financial Products Consulting Group, he was the Executive Vice President – Global Index and Exchange Traded Products of the NYSE, a subsidiary of Intercontinental Exchange, from 2013 to 2015. Previously, Mr. Weber was the Executive Vice President – Head of Strategy and Product Development of NYSE Liffe U.S., a division of NYSE Euronext, from 2008 to 2013, and held various positions with the American Stock Exchange from 1990 to 2008.
|
1
|
Janus Detroit Street Trust (4 funds); Clayton Street Trust (3 funds); Elevation ETF Trust (2 funds).
|
30
|
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Trustees & Officers
|
October 31, 2016 (Unaudited)
|
Name, Address*
& Year of Birth |
Position(s) Held
with Trust |
Term of Office
and Length of Time Served** |
Principal Occupation(s)
During Past 5 Years |
Number of Funds in Fund Complex Overseen by Trustee***
|
Other Directorships Held by Trustee During Past 5 Years
|
Interested Trustees
|
|||||
Edmund J. Burke
1961 |
Trustee and President
|
Since 2015
|
Mr. Burke is President and a Director of ALPS Holdings, Inc. (“AHI”), a wholly-owned subsidiary of DST Systems, Inc. (“DST”), (since 2005) and Director of Boston Financial Data Services, Inc. (“BFDS”), ALPS Advisors, Inc. (“AAI”), ALPS Distributors, Inc. (“ADI”), ALPS Fund Services, Inc. (“AFS”) and ALPS Portfolio Solutions Distributor, Inc. (“APSD”) and from 2001-2008, was President of AAI, ADI, AFS and APSD. Mr. Burke is an “interested person” because of his positions with APSD and its affiliates.
|
5
|
Mr. Burke is a Trustee/Director of Financial Investors Trust (31 funds); Liberty All-Star Equity Fund (1 fund); Liberty All-Star Growth Fund, Inc. (1 fund); Clough Global Equity Fund (1 fund); Clough Global Dividend and Income Fund (1 fund); Clough Global Opportunities Fund (1fund).
|
James E. Canty
1962 |
Trustee and Chairman
|
Since 2015
|
Mr. Canty is a founding partner, President and Portfolio Manager for the Adviser and a member of the Board of Directors of Clough Offshore Fund, Ltd. Mr. Canty is also currently a Trustee of St. Bonaventure University, Brilliant Light Power, Inc. and Razia’s Ray of Hope. Mr. Canty is a Certified Public Accountant. Mr. Canty is an “interested person” because of his positions with the Adviser.
|
4
|
Clough Global Equity Fund (1 fund); Clough Global Dividend and Income Fund (1 fund); Clough Global Opportunities Fund (1fund).
|
Annual Report | October 31, 2016
|
31
|
Clough Global Long/Short Fund
|
Trustees & Officers
|
October 31, 2016 (Unaudited)
|
Name, Address*
& Year of Birth
|
Position(s) Held
with Trust |
Term of Office and Length of Time Served**
|
Principal Occupation(s) During Past 5 Years
|
Officers
|
|||
Patrick D. Buchanan
1972 |
Treasurer
|
Since 2015
|
Mr. Buchanan is Vice President of ALPS Advisors, Inc. Mr. Buchanan joined ALPS in 2007. Mr. Buchanan is also Treasurer of ALPS ETF Trust, ALPS Variable Insurance Trust, Principal Real Estate Income Fund and RiverNorth Opportunities Fund, Inc.
|
Abigail J. Murray
1975 |
Secretary
|
Since 2015
|
Ms. Murray joined ALPS in April 2015. She is currently Vice President and Senior Counsel of ALPS. Prior to joining ALPS, Ms. Murray was an Attorney and Managing Member at Murray & Rouvina PLC from 2014 to 2015 and an Associate with Vedder Price P.C. from 2007 to 2014. Ms. Murray is also the Secretary of ALPS ETF Trust, Clough Global Dividend and Income Fund, Clough Global Equity Fund and Clough Global Opportunities Fund, RiverNorth Opportunities Fund, Inc., and Assistant Secretary of Principal Real Estate Income Fund, Elevation ETF Trust, Liberty All-Star Equity Income Fund and Liberty All-Star Growth Fund, Inc.
|
Melanie Zimdars
1976 |
Chief Compliance Officer (“CCO”)
|
Since 2016
|
Ms. Zimdars currently serves as a Deputy Chief Compliance Officer with ALPS. Prior to joining ALPS in September 2009, Ms. Zimdars served as Principal Financial Officer, Treasurer and Secretary for the Wasatch Funds from February 2007 to December 2008. Ms. Zimdars is also the CCO of Broadview Funds Trust, Elkhorn ETF Trust, ALPS Series Trust, Clough Global Dividend and Income Fund, Clough Global Equity Fund and Clough Global Opportunities Fund.
|
Alan Gattis
1980 |
Assistant Treasurer
|
Since 2016
|
Mr. Gattis joined ALPS in 2011, and is currently Vice President and Fund Controller. Prior to ALPS Mr. Gattis served as Audit Manager, Spicer Jeffries LLP, from 2009 through 2011 and Auditor, PricewaterhouseCoopers LLP, from 2004 through 2009. Mr. Gattis also serves as Assistant Treasurer of Clough Global Dividend and Income Fund, Clough Global Equity Fund, Clough Global Opportunities Fund, Griffin Institutional Access Real Estate Fund, Stadion Funds, and Centaur Mutual Funds Trust.
|
Jennifer Craig
1973 |
Assistant Secretary
|
Since 2016
|
Ms. Craig joined ALPS in 2007 and is currently Assistant Vice President and Legal Manager of ALPS. Prior to joining ALPS, Ms. Craig was Legal Manager at Janus Capital Management LLC and served as Assistant Secretary of Janus Investment Fund, Janus Adviser Series and Janus Aspen Series. Ms. Craig is also Assistant Secretary of Financial Investors Trust, ALPS Series Trust, Clough Global Dividend and Income Fund, Clough Global Equity Fund, and Clough Global Opportunities Fund.
|
32
|
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Trustees & Officers
|
October 31, 2016 (Unaudited)
|
Name, Address*
& Year of Birth |
Position(s) Held
with Trust |
Term of Office and Length of Time Served**
|
Principal Occupation(s) During Past 5 Years
|
Sareena Khwaja-Dixon
1980 |
Assistant Secretary
|
Since 2016
|
Ms. Khwaja-Dixon joined ALPS in August 2015 and is currently Senior Counsel and Vice President of ALPS Fund Services, Inc. Prior to joining ALPS, Ms. Khwaja-Dixon served as a Senior Paralegal/Paralegal for Russell Investments (2011 – 2015). Because of her position with ALPS, Ms. Khwaja-Dixon is deemed an affiliate of the Trust as defined under the 1940 Act. Ms. Khwaja-Dixon is also Secretary of Stadion Investment Trust, Liberty All-Star Equity Fund, Liberty All-Star Growth Fund, Inc., and Assistant Secretary of Clough Global Dividend and Income Fund, Clough Global Equity Fund, Clough Global Opportunities Fund and ALPS Variable Investment Trust.
|
* |
All communications to Trustees and Officers may be directed to Clough Funds Trust c/o 1290 Broadway, Suite 1100, Denver, Colorado 80203, except for Mr. Canty. For Mr. Canty, all communications may be sent to Clough Capital Partners L.P., One Post Office Square, 40th Floor, Boston, Massachusetts 02109.
|
** |
This is the year the Trustee or Officer began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected. Officers are elected on an annual basis.
|
Annual Report | October 31, 2016
|
33
|
Clough Global Long/Short Fund
|
Privacy Policy
|
FACTS
|
WHAT DOES THE CLOUGH GLOBAL LONG/SHORT FUND (THE “FUND”)
DO WITH YOUR PERSONAL INFORMATION? |
WHY?
|
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
|
WHAT?
|
The types of personal information we collect and share depend on the product or service you have with us. This information can include:
|
● Social security number and income;
|
|
● Account balances and transaction history;
|
|
● Assets and investment experience.
|
|
HOW?
|
All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons the Fund chooses to share such information; and whether you can limit this sharing
|
Reasons we can share your personal information
|
Does the Fund Share?
|
Can you limit this sharing?
|
For our everyday business purposes–such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus
|
Yes
|
No
|
For our marketing purposes–to offer our products and services to you
|
No
|
We do not share.
|
For joint marketing with other financial companies
|
No
|
We do not share.
|
For our affiliates’ everyday business purposes–information about your transactions and experiences
|
Yes
|
No
|
For our affiliates’ everyday business purposes–information about your creditworthiness
|
No
|
We do not share.
|
For nonaffiliates to market to you
|
No
|
We do not share.
|
QUESTIONS?
|
Call 855.425.6844 or go to www.cloughglobalfunds.com. | |||
WHO WE ARE
|
||||
Who is providing this notice?
|
Clough Global Long/Short Fund
|
|||
WHAT WE DO
|
||||
How does the Fund protect my personal information?
|
To protect your personal information from unauthorized access and use, we use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
|
|||
How does the Fund collect my personal information?
|
We collect your personal information, for example, when you open an account, provide account information or give us your contact information, make a wire transfer or deposit money
|
|||
Federal law gives you the right to limit only:
|
||||
● |
sharing for affiliates’ everyday business purposes — information about your creditworthiness
|
|||
Why can’t I limit all sharing?
|
● |
affiliates from using your information to market to you
|
||
● |
sharing for non-affiliates to market to you
|
|||
State laws and individual companies may give you additional rights to limit sharing.
|
34
|
www.cloughglobal.com
|
Clough Global Long/Short Fund
|
Privacy Policy
|
DEFINITIONS
|
||
Affiliates
|
Companies related by common ownership or control. They can be financial and nonfinancial companies.
|
|
Companies not related by common ownership or control. They can be financial and nonfinancial companies.
|
||
Non-affiliates
|
||
● |
The Fund does not share with non-affiliates so they can market to you.
|
|
A formal agreement between non-affiliated financial companies that together market financial products or services to you.
|
||
Joint marketing
|
||
● |
The Fund does not jointly market.
|
|
Other Important Information
|
||
California Residents
|
If your account has a California home address, your personal information will not be disclosed to nonaffiliated third parties except as permitted by applicable California law, and we will limit sharing such personal information with our affiliates to comply with California privacy laws that apply to us.
|
|
Vermont Residents
|
The State of Vermont requires financial institutions to obtain your consent prior to sharing personal information that they collect about you with affiliated companies and nonaffiliated third parties other than in certain limited circumstances. Except as permitted by law, we will not share personal information we collect about you with nonaffiliated third parties or other affiliated companies unless you provide us with your written consent to share such information.
|
Annual Report | October 31, 2016
|
35
|
(a) |
The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or any persons performing similar functions on behalf of the registrant.
|
(b)
|
Not applicable.
|
(c) |
During the period covered by this report, no amendments to the provisions of the code of ethics referenced in Item 2(a) above were made.
|
(d) |
During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics referenced in Item 2(a) above were granted.
|
(e) |
Not applicable.
|
(f) |
The registrant’s Code of Ethics is attached as an Exhibit to this report.
|
(a) |
Audit Fees: For the registrant’s fiscal year ended October 31, 2016 and fiscal period ending October 31, 2015, the aggregate fees billed for professional services rendered by the principal accountant for the audit of the registrant’s annual financial statements were $30,000 and $30,000, respectively.
|
(b) |
Audit-Related Fees: For the registrant’s fiscal year ended October 31, 2016 and fiscal period ending October 31, 2015, the aggregate fees billed for assurance and related services by the principal accountant that were reasonably related to the performance of the audit of the registrant’s financial statements and are not reported under paragraph (a) of this Item were $0 and $0, respectively.
|
(c) |
Tax Fees: For the registrant’s fiscal year ended October 31, 2016 and fiscal period ending October 31, 2015, the aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice and tax planning were $13,000 and $13,000, respectively. The fiscal period’s tax fees were for services for dividend calculation, excise tax preparation and tax return preparation.
|
(d) |
All Other Fees: For the registrant’s fiscal year ended October 31, 2016 no fees were billed to registrant by the principal accountant for services rendered and for the fiscal period ending October 31, 2015, $10,000 in fees were billed to registrant by the principal accountant in connection with the registrant’s seed capital audit.
|
(e)(1) |
Audit Committee Pre-Approval Policies and Procedures: All services to be performed by the registrant’s principal accountant must be pre-approved by the registrant’s audit committee or to its delegate as provided in the Audit Committee Charter.
|
(e)(2) |
No services described in paragraphs (b) through (d) of this Item were approved by the registrant’s audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
|
(f) |
Not applicable.
|
(g) |
The aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant, were $0 and $0 in the fiscal year ended October 31, 2016 and fiscal period ending October 31, 2015, respectively, other than those fees set forth in response to paragraph (c) of this Item.
|
(h) |
The registrant’s audit committee has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X, is compatible with maintaining the principal accountant’s independence and has determined that the provision of such non-audit services is compatible with maintaining the principal accountant’s independence.
|
(a) |
Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form N-CSR.
|
(b) |
Not applicable.
|
(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 amended) within 90 days of this report 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, as amended) during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
|
(a)(1)
|
The registrant’s Code of Ethics for Principal Executive and Senior Financial Officers, which is the subject of the disclosure required by Item 2 of Form N-CSR is filed herewith as Exhibit 12(a)(1).
|
(a)(2)
|
The certifications required by Rule 30a-2(a) of the Investment Company Act of 1940, as amended, and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.Cert.
|
(a)(3)
|
None.
|
(b)
|
The certifications by the registrant’s principal executive officer and principal financial officer, as required by Rule 30a-2(b) of the Investment Company Act of 1940, as amended, and Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as Exhibit 99.906Cert.
|
By:
|
/s/ Edmund J. Burke
|
|
Edmund J. Burke
|
||
President/Principal Executive Officer
|
||
Date:
|
January 9, 2017
|
By:
|
/s/ Edmund J. Burke
|
|
Edmund J. Burke
|
||
President/Principal Executive Officer
|
||
Date:
|
January 9, 2017
|
|
By:
|
/s/ Patrick D. Buchanan
|
|
Patrick D. Buchanan
|
||
Treasurer/Principal Financial Officer
|
||
Date:
|
January 9, 2017
|
I.
|
Purpose of the Code
|
· |
honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
|
· |
full, fair, accurate, timely, and understandable disclosure in reports and documents that the Trust files with, or submits to, the Securities and Exchange Commission (the “SEC”) and in any other public communications by the Trust;
|
· |
compliance with applicable governmental laws, rules and regulations;
|
· |
the prompt internal reporting of violations of the Code to the appropriate persons as set forth in the Code; and
|
· |
accountability for adherence to the Code.
|
II.
|
Covered Persons
|
III.
|
Honest and Ethical Conduct
|
A.
|
Honesty, Diligence and Professional Responsibility
|
· |
with honesty, diligence, and a commitment to professional and ethical responsibility;
|
· |
carefully, thoroughly and in a timely manner; and
|
· |
in conformity with applicable professional and technical standards.
|
B.
|
Objectivity/Avoidance of Undisclosed Conflicts of Interest
|
·
|
use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Trust whereby the Covered Officer would benefit personally to the detriment of the Trust;
|
·
|
cause the Trust to take action, or fail to take actions, for the individual personal benefit of the Covered Officer rather than the benefit of the Trust; or
|
·
|
use material non-public knowledge of portfolio transactions made or contemplated for the Trust to trade personally or cause others to trade personally in contemplation of the market effect of such transactions.
|
C.
|
Preparation of Financial Statements
|
· |
making, or permitting or directing another to make, materially false or misleading entries in the Trust’s financial statements or records;
|
· |
failing to correct the Trust’s financial statements or records that are materially false or misleading when he or she has the authority to record an entry; and
|
· |
signing, or permitting or directing another to sign, a document containing materially false or misleading financial information.
|
· |
The Covered Officer should consider whether (i) the entry or the failure to record a transaction in the records, or (ii) the financial statement presentation or the nature or omission of disclosure in the financial statements, as proposed by the supervisor, represents the use of an acceptable alternative and does not materially misrepresent the facts or result in an omission of a material fact. If, after appropriate research or consultation, the Covered Officer concludes that the matter has authoritative support and/or does not result in a material misrepresentation, the Covered Officer need do nothing further.
|
· |
If the Covered Officer concludes that the financial statements or records could be materially misstated as a result of the supervisor’s determination, the Covered Officer should follow the reporting procedures set forth in Section VI (Reporting and Accountability).
|
c.
|
D. Obligations in Dealing with the Independent Auditor of the Trust
|
IV.
|
Full, Fair, Accurate, Timely and Understandable Disclosure
|
V.
|
Compliance with Applicable Laws, Rules and Regulations
|
VI.
|
Reporting and Accountability
|
A. |
Any Covered Officer who knows of any violation of this Code or who questions whether a situation, activity or practice is acceptable must immediately report such practice to the Trust’s Chief Compliance Officer. The Chief Compliance Officer shall take appropriate action to investigate any reported potential violations. If, after such investigation, the Chief Compliance Officer believes that no violation has occurred, the Chief Compliance Officer is not required to take any further action. Any matter that the Chief Compliance Officer believes is a violation will be reported to the Chairman of the Board of Trustees. The Chief Compliance Officer shall respond to the Covered Officer within a reasonable period of time.
|
B. |
If the Covered Officer is not satisfied with the response of the Chief Compliance Officer, the Covered Officer shall report the matter to the Chairman of the Board of Trustees. If the Chairman is unavailable, the Covered Officer may report the matter to any other member of the Board of Trustees. The person receiving the report shall consider the matter, refer it to the full Board of Trustees if he or she deems appropriate, and respond to the Covered Officer within a reasonable amount of time. If the Board of Trustees concurs that a violation has occurred, it will consider appropriate action, which may include review of and appropriate modifications to applicable policies and procedures or notification to appropriate personnel of the investment adviser or its board.
|
C. |
If the Board of Trustees determines that a Covered Officer violated this Code, failed to report a known or suspected violation of this Code, or provided intentionally false or malicious information in connection with an alleged violation of this Code, the Board of Trustees may take disciplinary action against any such Covered Officer to the extent the Board of Trustees deems appropriate. No Covered Officer will be disciplined for reporting a concern in good faith.
|
D. |
To the extent possible and as allowed by law, reports will be treated as confidential. The Trust may report violations of the law to the appropriate authorities.
|
VII.
|
Disclosure of this Code
|
· |
Filing a copy of this Code as an exhibit to the Trust’s annual report on Form N-CSR;
|
· |
Posting the text of this Code on the Trust’s Internet website and disclosing, in its most recent report on Form N-CSR, its Internet address and the fact that it has posted this Code on its Internet website; or
|
· |
Providing an undertaking in the Trust’s most recent report on Form N-CSR to provide a copy of this Code to any person without charge upon request, and explaining the manner in which such a request may be made.
|
VIII.
|
Waivers
|
IX.
|
Amendments
|
X.
|
Confidentiality
|
1. |
I have reviewed this report on Form N-CSR of the Clough Funds Trust;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c. |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
d. |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions);
|
a. |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b. |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
By:
|
/s/ Edmund J. Burke
|
|
Edmund J. Burke
|
||
President/Principal Executive Officer
|
||
Date:
|
January 9, 2017
|
1. |
I have reviewed this report on Form N-CSR of the Clough Funds Trust;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c. |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and
|
d. |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions);
|
a. |
all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and
|
b. |
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
By:
|
/s/ Patrick D. Buchanan
|
|
Patrick D. Buchanan
|
||
Treasurer/Principal Financial Officer
|
||
Date:
|
January 9, 2017
|
(i) |
the Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable, of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(ii) |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated:
|
January 9, 2017
|
|
By:
|
/s/ Edmund J. Burke
|
|
Edmund J. Burke
|
||
President/Principal Executive Officer
|
(i) |
the Report fully complies with the requirements of Section 13(a) or Section 15(d), as applicable of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(ii) |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Dated:
|
January 9, 2017
|
|
By:
|
/s/ Patrick D. Buchanan
|
|
Patrick D. Buchanan
|
||
Treasurer/Principal Financial Officer
|
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