GLO Clough Global Opportunities Fund

Beginning on January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the Funds’ annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Funds’ website at www.cloughglobal.com, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

Beginning on January 1, 2019, you may, notwithstanding the availability of shareholder reports online, elect to receive all future shareholder reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with a Fund, you can call 1-866-226-8017, from 8am to 5pm CT, to let the Fund know you wish to continue receiving paper copies of your shareholder reports.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-866-226-8017.

October 31, 2019 (Unaudited)

For the fiscal year ending October 31, 2019, the Clough Global Dividend and Income Fund (“GLV” or the “Fund”) was up 11.57% on net asset value (“NAV”) and 9.97% on market price. The Fund’s benchmark, 50% of the MSCI World Index and 50% of the Barclays US Aggregate Index, was up 12.81% for the same time.

The economy in the United States is growing modestly but China and Europe are slowing. The Federal Reserve is once again growing its balance sheet, and the global easing cycle is regaining dominance. This should support bonds and stocks. We believe global short rates will reach new lows and bonds are likely to benefit because the Treasury will issue more bills and fewer bonds to satisfy the Fed’s needs. A shortage of long-term yield should re-emerge sooner rather than later. Consumers are ok but investment is weak and eventually that is likely to flow back to slow the economy.

Monetary easing is less powerful than it once was, and capital investment is systemically weaker in an asset light ecosystem. A slower housing cycle leaves the economy even further cash rich because the households are saving as they age. Eleven years after the Global Financial Crisis the European and Japanese banking systems remain so burdened with bad debt they cannot create credit.

While reducing exposure at the end of 2018, we decided to keep our high conviction long ideas intact, because we believed that attempts to trade around the steep equity selloffs simply risked being whipsawed. That strategy allowed the Fund to participate in the rally that started in January 2018. As political headlines resurfaced in India ahead of May elections and in China -U.S. trade negotiations, we have kept our long positions in our two preferred emerging markets tactical while adding to long duration 30-year United States Treasury bonds.

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

We are currently focused on four key themes: A) earnings power and product cycles in the technology space, B) the evolving business models in the U.S. money center banks and other high dividend specialty finance companies, C) the emerging consumer in China and India, and D) long the U.S. Treasury bond as an investment in declining yields.

Facing low interest rates, we think investors looking for yield will turn to equities, and companies that generate free cash flow that can support growing dividends will perform well. Free cash flow can essentially be a proxy for yield. Citigroup (C), the Fund’s largest holding, sports a 3.3% dividend yield and is building excess capital that may support even higher dividends in the future. Microsoft’s (MSFT) yield is in the vicinity of half that but its 7% free cash flow yield can still support very strong dividend growth over the years.

TOP FIVE PERFORMERS

The Fund has been using a holding in 30-year U.S. Treasury bonds as a hedge to the equity portfolio this year and the position was the top contributor to performance. We believe we have a differentiated view on treasury bonds and hold them as a source of returns as well as a hedge to the equity portfolio as the global yield shortage worsens. Private debt to gross domestic product (GDP) ratios are too high to permit adding more debt and that keeps GDP growth low. The multi-decade decline in interest rates occurred in tandem with the rise in debt. Until debt loads are reduced, interest rates will continue to decline. Banks in Europe and Japan are burdened by bad balance sheets and cannot create significant new credit. Corporate capital spending is low because capital light business models proliferate (we are not building auto and steel plants but cloud centers), and outside of technology there has been little net capital spending in this cycle. In short, we believe the shortage of quality bonds in this market place will persist, and indeed, intensify. Meanwhile, the baby boomers are saving, and they are seeking yield. People cannot borrow and they want to save.

Community Healthcare Trust (CHCT) is a best in class medical office REIT. CEO Timothy Wallace is a well-respected operator in the space with a proven track record and owns over 3% of the shares outstanding. CHCT has been able to grow earnings and dividends with an effective acquisition plan in the highly fragmented medical office sector.

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

Citigroup (C) was the Fund’s largest position as of 10/31/2019 and a top performer. Lower costs and rising fees are the keys to higher returns on equity and valuations for money center banks like Citigroup. Their fee businesses have generated most of the revenue growth, particularly in credit cards and investment banking. Revenue from credit cards rose 11% at Citigroup in the calendar third quarter. As mentioned above, Citigroup’s ability to maintain and potentially grow a very attractive 3.3% yield in a low rate world should continue to drive price performance.

October 31, 2019 (Unaudited)

SBA Communications (SBAC) is one of the largest telecom tower operators in the U.S. These towers are great businesses with very nice free cash flow growth. Furthermore, their growth should accelerate in the next few years as U.S. telecom providers deploy 5G through their networks.

BOTTOM FIVE PERFORMERS

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

A short in a large biotechnology company detracted from performance. We believe the company will face competitive pressure for its core product from emerging companies. However, the company generated better than expected results during the period, which resulted in street analysts raising their estimates in 2020, and the stock gained.

A short position in Mediobanca (MB IM) was a bottom performer. The Italian bank, like other European banks, rallied off of very depressed levels during the year. We continue to believe there is little value in the equity of MB IM and other banks as they have yet to clear their balance sheet of crisis era bad loans. Their damaged balance sheets, along with the Euro Zone’s slumping economy and negative interest rates, makes it very difficult to expand credit and start to grow profits.

The Fund’s short position in AT&T (T) was a detractor for the year. We continue to believe that management will have a difficult task reigning in costs while staying relevant in markets with well positioned competitors. This will ultimately put their 5% dividend at risk. However, the move lower in rates has rallied the stock. The Fund has stepped aside for now but will look for an attractive entry point to reestablish the trade in the future.

Apple (AAPL), another bottom performer, is a company we like for multiple reasons. First, the services business is high margin and is growing at a healthy teens rate and in wearables (e.g., AirPods) it has found another successful product in addition to the iPhones. Furthermore, we believe CY 2019 will mark a trough in iPhone volumes as it is greatly under shipping what we believe to steady state demand driven by replacement cycles. The 5G phone to be introduced next year should drive a strong replacement cycle as well. While we believe we have been right on our broader thesis, it has been a very hard stock to own given its China exposure and sensitivity to China risk offs driven by presidential tweets. We will look to re-establish a position when the appropriate risk reward emerges.

CORPORATE UPDATE FROM CHUCK CLOUGH

We would like to close with some exciting news as Clough Capital Partners, L.P. (“Clough Capital” or the “Firm”) celebrates its 20^th year. Please join us in congratulating Michael J. Hearle, a Partner of the Firm and a Portfolio Manager on several of the Firm’s products, on his promotion to Chief Executive Officer and Co-Chief Investment Officer of the Firm. This will allow me to devote even more of my time to the markets. Rob Zdunczyk and I will continue to manage the Clough Global Dividend and Income Fund.

Together, our talented Partners, Portfolio Managers, and investment staff, share a long-term commitment to rigorous investment analysis, careful discipline in portfolio construction and above all, careful stewardship of our investors’ capital and trust. We are excited about this news and believe advancements in our leadership are critical to best position our Firm for success for years to come.

Sincerely,

Charles I Clough, Jr.

Robert M. Zdunczyk

October 31, 2019 (Unaudited)

This letter is provided for informational purposes only and is not an offer to purchase or sell shares. Clough Global Dividend and Income Fund (the “Fund”) is a closed-end fund, which is traded on the NYSE American LLC, and does not continuously issue shares for sale as open-end mutual funds do. The market price of a closed-end Fund is based on the market’s value.

The information in this letter represents the opinions of the individual Portfolio Managers and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. Past performance is no guarantee of future results.

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

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

The net asset value (NAV) of a closed-end fund is the market price of the underlying investments (i.e., stocks and bonds) in the fund’s portfolio, minus liabilities, divided by the total number of fund shares outstanding. However, the fund also has a market price; the value of which it trades on an exchange. This market price can be more or less than its NAV.

It is not possible to invest directly in an Index.

RISKS 

An investor should consider investment objectives, risks, charges and expenses carefully before investing. To obtain an annual report or semiannual report which contains this and other information visit www.cloughglobal.com or call 1-877-256-8445. Read them carefully before investing.

A Fund’s distribution policy will, under certain circumstances, have certain adverse consequences to the Fund and its shareholders because it may result in a return of capital resulting in less of a shareholder’s assets being invested in the Fund and, over time, increase the Fund’s expense ratio.

Distributions may be paid from sources of income other than ordinary income, such as net realized short-term capital gains, net realized long-term capital gains and return of capital. Based on current estimates, we anticipate the most recent distribution has been paid from short-term and long-term capital gains. The actual amounts and sources of the amounts for tax reporting purposes will depend upon a Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. If a distribution includes anything other than net investment income, the Fund provides a Section 19(a) notice of the best estimate of its distribution sources at that time. These estimates may not match the final tax characterization (for the full year’s distributions) contained in shareholders’ 1099-DIV forms after the end of the year.

A Fund’s investments in securities of foreign issuers are subject to risks not usually associated with owning securities of U.S. issuers. These risks can include fluctuations in foreign currencies, foreign currency exchange controls, social, political and economic instability, differences in securities regulation and trading, expropriation or nationalization of assets, and foreign taxation issues.

A Fund’s investments in preferred stocks and bonds of below investment grade quality (commonly referred to as “high yield” or “junk bonds”), if any, are predominately speculative because of the credit risk of their issuers.

An investment by a Fund in REITs will subject it to various risks. The first, real estate industry risk, is the risk that the REIT share prices will decline because of adverse developments affecting the real estate industry and real property values. In general, real estate values can be affected by a variety of factors, including supply and demand for properties, the economic health of the country or of different regions, and the strength of specific industries that rent properties. The second, investment style risk, is the risk that returns from REITs—which typically are small or medium capitalization stocks—will trail returns from the overall stock market. The third, interest rate risk, is the risk that changes in interest rates may hurt real estate values or make REIT shares less attractive than other income-producing investments. Credit risk is the risk that an issuer of a preferred or debt security will become unable to meet its obligation to make dividend, interest and principal payments.

Interest rate risk is the risk that preferred stocks paying fixed dividend rates and fixed-rate debt securities will decline in value because of changes in market interest rates. When interest rates rise the value of such securities generally will fall. Derivative transactions (such as futures contracts and options thereon, options, swaps, and short sales) subject a Fund to increased risk of principal loss due to imperfect correlation or unexpected price or interest rate movements. Compared to investment companies that focus only on large companies, the Fund’s share price may be more volatile because it also invests in small and medium capitalization companies.

Past performance is no guarantee of future results.