# EDGAR Filing Document

**Accession Number:** 0001638872
**File Stem:** 0001398344-23-005125
**Filing Date:** 2023-2
**Character Count:** 470596
**Document Hash:** 6f2a83e3482433fce5ebb7df6a21473a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001398344-23-005125.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0001398344-23-005125

**CONFORMED SUBMISSION TYPE**: 485BPOS

**PUBLIC DOCUMENT COUNT**: 25

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230228

**EFFECTIVENESS DATE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Clough Funds Trust
- **CENTRAL INDEX KEY:** 0001638872
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-23059
- **FILM NUMBER:** 23684300

**BUSINESS ADDRESS:**
- **STREET 1:** 1290 BROADWAY
- **STREET 2:** SUITE 1100
- **CITY:** DENVER
- **STATE:** CO
- **ZIP:** 80203
- **BUSINESS PHONE:** 303-623-2577

**MAIL ADDRESS:**
- **STREET 1:** 1290 BROADWAY
- **STREET 2:** SUITE 1100
- **CITY:** DENVER
- **STATE:** CO
- **ZIP:** 80203
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Clough Funds Trust
- **CENTRAL INDEX KEY:** 0001638872
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** DE

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-204408
- **FILM NUMBER:** 23684299

**BUSINESS ADDRESS:**
- **STREET 1:** 1290 BROADWAY
- **STREET 2:** SUITE 1100
- **CITY:** DENVER
- **STATE:** CO
- **ZIP:** 80203
- **BUSINESS PHONE:** 303-623-2577

**MAIL ADDRESS:**
- **STREET 1:** 1290 BROADWAY
- **STREET 2:** SUITE 1100
- **CITY:** DENVER
- **STATE:** CO
- **ZIP:** 80203

## Series and Classes Contracts Data

### Clough Global Long/Short Fund (Series ID: S000050324)

| Class ID   | Class Name     | Ticker Symbol   |
|:---|:---|:---|
| C000158882 | Investor Class | CLOAX           |
| C000158883 | Class C        | CLOCX           |
| C000158884 | Class I        | CLOIX           |
| C000202463 | Class A        | CLOVX           |

?xml version='1.0' encoding='ASCII'?

As filed with the Securities and Exchange Commission on February 28, 2023

File Nos. 333-204408 and 811-23059

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, DC 20549**

**FORM N-1A**

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| | |
|:---|:---|
| **REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933** | [X] |
| **Pre-Effective Amendment No. ____** | [ ] |
| **Post-Effective Amendment No. 17** | [X] |

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and/or

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| | |
|:---|:---|
| **REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940** | [X] |
| **Amendment No. 19** | [ ] |

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(Check appropriate box or boxes)

**<u>CLOUGH FUNDS TRUST</u>**

(Exact Name of Registrant as Specified in Charter)

<u>1290 Broadway, Suite 1000, Denver, Colorado 80203</u>

(Address of Principal Executive Offices)

<u>303.623.2577</u>

(Registrant's Telephone Number, including Area Code)

Nicholas Adams

c/o ALPS Fund Services, Inc.

1290 Broadway, Suite 1000

<u>Denver, Colorado 80203</u>

(Name and Address of Agent for Service)

Copy to:

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| | |
|:---|:---|
| Derek Steingarten | Miriam S. Gross |
| Morrison & Foerster LLP | General Counsel |
| 250 W. 55<sup>th</sup> St. | Clough Capital Partners L.P. |
| New York, NY 10019 | 53 State Street |
|  | 27<sup>th</sup> Floor |
|  | Boston, MA 02110 |

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Approximate Date of Proposed Public Offering:

It is proposed that this filing will become effective (check appropriate box):

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| | |
|:---|:---|
| x | immediately upon filing pursuant to paragraph (b) |
|  | on (date), pursuant to paragraph (b) |
|  | 60 days after filing pursuant to paragraph (a) (1) |
|  | on (date), pursuant to paragraph (a) (1) |
|  | 75 days after filing pursuant to paragraph (a) (2) |
|  | on (date), pursuant to paragraph (a) (2) |

---

If appropriate, check the following box:

This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

![](fp0082174-1_i.jpg)

![](fp0082174-1_ia.jpg)

PROSPECTUS

FEBRUARY 28, 2023

CLOUGH FUNDS TRUST

CLOUGH GLOBAL LONG/SHORT FUND

Investor Class: CLOAX

Class A: CLOVX

Class C: CLOCX

Class I: CLOIX

*As with all mutual funds, the Securities and Exchange Commission has not approved or disapproved these securities or passed upon the accuracy or adequacy of this Prospectus. Any representation of the contrary is a criminal offense.* 

**Table of Contents**

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| | |
|:---|:---|
| Summary Section | 2 |
| Investment Objective and Principal Investment Strategies | 8 |
| More on the Fund's Investments and Related Risks | 9 |
| Disclosure of Portfolio Holdings | 14 |
| Management | 14 |
| The Portfolio Managers | 14 |
| Administrator, Distributor and Transfer Agent of the Fund | 14 |
| Additional Information Regarding Contractual Arrangements | 14 |
| Buying and Redeeming Shares | 15 |
| Share Transactions | 19 |
| Dividends and Distributions | 21 |
| Taxes | 21 |
| Financial Highlights | 22 |
| Appendix A – Intermediary Sales Charge Waivers and Discounts | A-1 |
| Additional Information About The Fund | Back Cover |

---

Clough Global Long/Short Fund

**Summary Section** 

**CLOUGH GLOBAL LONG/SHORT FUND (THE "FUND")** 

**Investment Objective** 

The Fund seeks to provide investors with long-term capital appreciation.

**Fees and Expenses of the Fund** 

This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may qualify for certain sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in the Fund. More information about these and other discounts is available from your financial professional and in "BUYING AND REDEEMING SHARES" at page 14 of this Prospectus and "PURCHASE & REDEMPTION OF SHARES" at page 30 of the Fund's Statement of Additional Information. Descriptions of sales charge waivers and/or discounts for Class A Shares with respect to certain financial intermediaries are reproduced in "Appendix A – Intermediary-Specific Sales Charge Waivers and Discounts" to this prospectus based on information provided by the financial intermediary. You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables or Example below.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investor <br> Class** | **Class A** | **Class C** | **Class I** |
| **Shareholder Fees** <br> *(fees paid directly from your investment)*  |  |  |  |  |
| Maximum sales charge (load) imposed on purchases (as a percentage of offering price) |  | 5.50%  |  |  |
| Maximum deferred sales charge (load) (as a percentage of the lower of original purchase price or redemption proceeds)  |  | None<sup>(1)</sup> | 1.00%<sup>(2)</sup> |  |
| Redemption Fee (as a percentage of amount redeemed within 30 days of purchase)  | 2.00% | 2.00%  | 2.00% | 2.00% |

---

**Annual Fund Operating Expenses** *(expenses that you pay each year as a percentage of the value of your investment)* 

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Investor <br> Class** | **Class A** | **Class C** | **Class I** |
| Management Fees | 1.10% | 1.10% | 1.10% | 1.10% |
| Distribution and Service (12b-1) Fees | 0.25% | 0.25% | 1.00% |  |
| &nbsp;&nbsp;&nbsp;Dividend and Interest Expense on Short Sales | 0.28% | 0.27% | 0.26% | 0.27% |
| &nbsp;&nbsp;&nbsp;Shareholder Services Fees | 0.10% | 0.10% |  |  |
| &nbsp;&nbsp;&nbsp;Other Fund Expenses | 1.02% | 1.46% | 1.17% | 1.22% |
| Total Other Expenses | 1.30% | 1.46% | 1.43% | 1.49% |
| Acquired Fund Fees and Expenses<sup>(3)</sup>  | 0.02% | 0.02% | 0.02% | 0.02% |
| Total Annual Fund Operating Expenses | 2.77% | 2.93% | 3.55% | 2.61% |
| Fee Waiver and/or Expense Reimbursement<sup>(4)</sup>  | (1.00%) | (1.04%) | (1.02%) | (1.07%) |
| Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement | 1.77% | 1.89% | 2.53% | 1.54% |

---

<sup>*(1)*</sup> *You may purchase Class A shares in amounts of $1 million or more without paying an initial sales charge, but if you redeem those shares within 12 months of purchase, you will pay a contingent deferred sales charge ("CDSC") of 1.00%.* 

<sup>*(2)*</sup> *On Class C shares redeemed within 12 months of purchase.* 

<sup>*(3)*</sup> *Acquired Fund Fees and Expenses are the indirect costs of investing in other investment companies. The operating expenses in this fee table will not correlate to the expense ratio in the Fund's financial highlights because the financial statements include only the direct operating expenses incurred by the Fund.* 

<sup>*(4)*</sup> *Pursuant to a letter agreement with the Fund, Clough Capital Partners L.P. (the "Adviser") has agreed contractually to limit the operating expenses of each class of the Fund (excluding Rule 12b-1 Distribution and Service Fees, Shareholder Services Fees, acquired fund fees and expenses, interest, taxes, brokerage costs and commissions, dividend and interest expense on short sales, and litigation, indemnification and extraordinary expenses as determined under generally accepted accounting principles) to an annual rate of 1.25% through February 28, 2024. The Adviser is permitted to recover, on a class-by-class basis, any fees waived and/or expenses reimbursed under this letter agreement if such recovery does not cause total annual operating expenses to exceed the expense limitation in effect (i) at the time the expenses to be recovered were waived and/or reimbursed and (ii) at the time of such recovery. The Adviser will not be entitled to recover any such waived or reimbursed fees and expenses more than three years after the end of the fiscal year in which the fees were waived or expenses were reimbursed. The Adviser may not terminate this waiver arrangement without the approval of the Fund's Board of Trustees.* 

---

| | |
|:---|:---|
| 2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Prospectus \| February 28, 2023*** |

---

**Example** 

This Example helps you compare the costs of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The fee waiver and/or expense reimbursements shown in the Annual Fund Operating Expenses table are only reflected for the length of the expense commitment in each time period shown below.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **Although your actual costs may be higher or lower, based on these assumptions your cost would be:** | | | | |
| Investor Class Shares | $180 | $764 | $1375 | $3022 |
| Class A Shares | $731 | $1314 | $1921 | $3549 |
| Class C Shares | $356 | $994 | $1753 | $3747 |
| Class I Shares | $157 | $709 | $1289 | $2861 |

---

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **3 Years** | **5 Years** | **10 Years** |
| **You would pay the following expenses if you did not redeem your shares:** | | | | |
| Investor Class Shares | $180 | $764 | $1375 | $3022 |
| Class A Shares | $731 | $1314 | $1921 | $3549 |
| Class C Shares | $256 | $994 | $1753 | $3747 |
| Class I Shares | $157 | $709 | $1289 | $2861 |

---

The Example does not reflect sales charges (loads) on reinvested dividends and other distributions. If these sales charges (loads) were included, your costs would be higher. Descriptions of sales charge waivers and/or discounts for Class A Shares with respect to certain financial intermediaries are reproduced in "Appendix A – Intermediary-Specific Sales Charge Waivers and Discounts" to this prospectus based on information provided by the financial intermediary. The Example does not reflect any commissions and/or other compensation that may be paid to financial intermediaries for transactions in Class I Shares.

**PORTFOLIO TURNOVER** 

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). For U.S. federal income tax purposes, a higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund's performance. For the fiscal year ended October 31, 2022, the Fund's portfolio turnover rate was 244% of the average value of its portfolio.

**Principal Investment Strategies of the Fund** 

The Fund seeks to achieve its investment objective primarily by taking long positions and short positions in equity securities in both U.S. and non-U.S. markets. The Fund invests primarily in a broad selection of global equity securities, including preferred stocks. Depending on the Adviser's outlook, the Fund may, at times, be more heavily invested in equity securities in U.S. markets or in equity securities in other markets around the world, including securities of multinational companies. Under normal circumstances, the Fund expects to invest in securities of issuers located in at least three countries (in addition to the United States). Unless market conditions are deemed unfavorable, the Fund expects that the market value of the Fund's long and short positions in securities of issuers organized or located outside the United States, issuers doing a substantial amount of business outside the United States (greater than 50% of revenues derived from outside of the United States), and, in the case of an exchange-traded fund ("ETF"), where a majority of the securities in which the ETF invests have the foregoing characteristics, will represent at least 40% of the Fund's net assets. Multinational companies include those organized or located in the United States that do a substantial amount of business outside the United States. Investments in non-U.S. markets will be made primarily through securities such as common shares, depositary receipts and registered investment companies (including ETFs). The Fund may also use derivatives, such as swaps and participation notes, in order to gain access to foreign markets. In addition to the Fund's primary investment strategy, the Adviser may employ currency strategies across foreign markets, including developing/emerging markets (countries that are included in the MSCI Emerging Markets Index), using derivatives, such as forward foreign currency contracts, futures, and swaps, to seek to hedge against foreign exchange risk. The Fund will use a variety of investment techniques designed to capitalize on declines in the market prices of equity securities or declines in market indices based on the Adviser's investment outlook, including by taking long and short positions. Short positions will generally not exceed 50% of the Fund's net assets. The Fund's net equity exposure (measured as the market value of long positions minus the market value of short positions) is expected to range between 50%-100% of the Fund's net assets. A higher net exposure generally reflects the Adviser's belief there are relatively better investment opportunities in securities that it expects to appreciate in value than in securities it expects to decline in value (and may also indicate that the Adviser has a relatively positive view of equity markets), while a lower net exposure generally reflects the reverse, although in each case other factors could also cause the Adviser to choose to increase or decrease the Fund's net exposure.

The Fund generally seeks to limit volatility in returns to below that of broad global equity indices such as the MSCI All-Country World Index, as measured by the standard deviation (the average deviation of a return series from its mean). The Adviser may employ various hedging strategies for return generation, or to express a specific view on an industry or individual company (including through investments in ETFs, options on securities, and options on stock indices) and other techniques (for example, by utilizing short positions and by managing currency hedging exposure, derivative positions, cash balances and U.S. Treasury securities investments as a means to seek to reduce portfolio

***www.cloughglobal.com***<sub>3</sub>

Clough Global Long/Short Fund

volatility) in an effort to limit the Fund's exposure to declines in markets, regions, industries and/or individual securities. The Fund may invest in issuers of any capitalization and size. Generally, securities will be purchased or sold by the Fund on securities exchanges and in the over-the-counter (OTC) market. However, the Fund may hold securities that are illiquid or that are only infrequently traded. More information regarding illiquid securities is included in the prospectus in the section entitled "More on the Fund's Investments and Related Risks – Illiquid Investments" and in the SAI in the section entitled "Other Practices – Illiquid Securities."

The Adviser may, from time to time, invest the Fund's cash balances in any investments it deems appropriate, including, without limitation and as permitted under the Investment Company Act of 1940, as amended (the "1940 Act"), money market funds, repurchase agreements, U.S. Treasury and U.S. agency securities, municipal and corporate bonds and bank accounts.

**Investment Selection** 

The Fund seeks to achieve its investment objective by applying a fundamental research-driven investment process. The Adviser believes that attractive investment returns can be achieved when key, proprietary insights into industry or economic trends are discovered, and their significance understood, before they become obvious to other investors. Within this context, the investment process will focus on investing in a number of major global investment themes identified by the Adviser. Once attractive themes are identified, the Adviser generally utilizes a "bottom-up" research process to identify companies it believes are best positioned to benefit from those specific themes, as well as companies that the Adviser believes may be vulnerable in light of these themes. Individual positions will be selected based upon a host of qualitative and quantitative factors, including, but not limited to, such factors as a company's competitive position, quality of company management, quality and visibility of earnings and cash flow, balance sheet strength and relative valuation. Issuers with strengths in these areas (or in such other areas that the Adviser determines are relevant) may be attractive opportunities for long investments. Conversely, issuers facing profit headwinds, balance sheet weaknesses, competitive pressures or adverse regulatory changes, among other challenges, may present attractive opportunities as short positions when the Adviser believes their value is likely to decline over some period of time.

Under the Fund's theme-oriented investment approach, investment positions may be focused in only a relatively small number of sectors. The Fund will seek to broadly invest its assets within its investment themes, as appropriate, to lower volatility. Individual equity positions on both the long and short side of the portfolio will typically be below 5% of total assets at the time of investment. (Investments in ETFs may exceed 5% of total assets at the time of investment.)

**Principal Risks of the Fund** 

The following is a description of the principal risks of the Fund's portfolio, which may adversely affect its net asset value and total return. There are other circumstances (including additional risks that are not described here) which could prevent the Fund from achieving its investment objective. The principal risks are listed below in alphabetical order, not in order of importance. It is important to read all the disclosure information provided and to understand that you may lose money by investing in the Fund.

**Counterparty Risk.** A financial institution or other counterparty with whom the Fund does business, or that underwrites, distributes or guarantees any investments or contracts that the Fund owns or is otherwise exposed to, including the counterparty to an OTC derivatives contract, may decline in financial health and become unable to honor its commitments. This could cause losses for the Fund or could delay the return or delivery of collateral or other assets to the Fund.

**Currency Strategies Risk.** The success of the Fund's currency strategies depends, in part, on the effectiveness and implementation of the Adviser's analysis and methodology. There can be no assurance that the Adviser's analysis and methodology will be successful, as this will ultimately depend on many different factors. If these strategies prove unsuccessful, losses to the Fund may be significant and may substantially exceed the intended level of market exposure for the currency strategies. As part of its currency strategies, the Fund will have substantial exposure to the risks of non-U.S. currency markets. Foreign currency rates may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and economic or political developments in the United States or abroad. As a result, the Fund's exposure to foreign currencies could cause lower returns or even losses to the Fund. Although the Adviser seeks to limit these risks through the aggregation of various long and short positions, there can be no assurance that it will be able to do so. This strategy can have the effect of reducing returns and minimizing opportunities for gain.

**Depositary Receipts Risk.** The issuers of unsponsored depositary receipts are not obligated to disclose information that is, in the United States, considered material. Therefore, there may be less information available regarding these issuers and there may not be a correlation between such information and the market value of the depositary receipts. Depositary receipts are generally subject to the same risks as the foreign securities that they evidence or into which they may be converted.

**Derivatives Risk.** The Fund's use of derivatives (which may include forward foreign currency contracts, futures, participation notes, options on securities, options on stock indices, and swaps) may reduce the Fund's returns and/or increase the volatility of the Fund's net asset value. Derivatives may be difficult to value and may at times be highly illiquid, and the Fund may not be able to close out or sell a derivative position at a particular time or at an anticipated price. Derivative investments will typically increase the Fund's exposure to principal risks to which it is otherwise exposed, and may expose the Fund to additional risks, including liquidity risk, interest rate risk, counterparty risk, market risk, credit risk and management risk.

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|:---|:---|
| 4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Prospectus \| February 28, 2023*** |

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**Developing/Emerging Markets Risk.** Developing/emerging markets (countries that are included in the MSCI Emerging Markets Index) have been more volatile than the markets of developed countries with more mature economies. To the extent that the Fund invests in issuers located in developing/emerging markets, the risk may be heightened by political changes and changes in taxation or currency controls that could adversely affect the values of these investments.

**Equity Security and Stock Market Risk.** The Fund is affected by how the stock market performs. Equity securities fluctuate in price based on changes in the issuer's financial condition, as well as market and economic conditions. When stock prices fall, you should expect the value of your investment to fall. Equity or equity-related securities generally have greater price volatility than fixed income securities.

**Focus Risk.** To the extent that the Fund focuses its investments in particular asset classes or sectors of the economy, any market price movements, regulatory or technological changes, or economic conditions affecting companies in those asset classes or sectors will have a significant impact on the Fund's performance. As a result, the Fund's performance may fluctuate more widely than if the Fund were invested more evenly across asset classes or sectors of the economy.

**Foreign Investment Risk.** The Fund faces the risks inherent in foreign investing. Adverse political, economic or social developments could undermine the value of the Fund's investments or prevent the Fund from realizing its full value. Financial reporting standards for companies based in foreign markets differ from those in the United States. Additionally, foreign securities markets generally are smaller and less liquid than U.S. markets. To the extent that the Fund invests in non-U.S. dollar denominated foreign securities, changes in currency exchange rates may affect the U.S. dollar value of foreign securities or the income or gain received on these securities. To the extent the Fund invests in securities of emerging market issuers, foreign investment risks are greater in emerging markets than in more developed markets. Investments in emerging markets are often considered speculative.

**Hedging Risk.** Because the Fund may invest in derivative instruments and ETFs to hedge against foreign currency and/or equity market exposure, the Fund faces the risk that its hedging strategies may not perform as intended. In addition, while the hedging strategies may offset losses, they also may offset gains and typically involve expenses.

**Investment Companies Risk.** Because the Fund may invest in investment companies, such as ETFs and closed- and open-end mutual funds, the Fund's performance will be directly related to the performance of the investment companies. To the extent that a given investment company underperforms its benchmark or its fund peer group, it may contribute to the underperformance by the Fund. In addition, the Fund indirectly pays a portion of the expenses incurred by the investment companies, which lowers the Fund's performance. To the extent that the Fund's allocations favor investment companies with higher expenses, the overall cost of investing paid by the Fund will be higher. Also, because shares of ETFs and closed-end funds trade on a securities exchange, their shares may trade at a premium or discount to their net asset value.

**Investment Themes Risk.** The Fund's investment program depends on the Adviser's identification and development of global or regional investment themes, and the Fund's performance may suffer if such themes, which can be inherently challenging to identify, are not well identified, or do not unfold as anticipated. Failure to correctly identify or develop the themes that will guide the Fund's portfolio investments, or the failure of a theme to unfold in the way the Adviser anticipates, may result from many causes, including the following: governments or others may decide to oppose or delay certain economic, social or political developments that are the basis of investment themes; demographic or economic data necessary to understand correctly the way in which certain themes may unfold in some countries may be incorrect or incomplete; development of themes and their longevity may require attention to subtle cultural factors not always apparent to outside observers; or social and political changes or natural disasters in some parts of the world may alter the underlying conditions or affect the availability of natural resources necessary to an emerging theme.

**Liquidity Risk.** In certain situations, it may be difficult or impossible to sell an investment in an orderly fashion at an acceptable price.

**Portfolio Turnover Risk.** The Fund may engage in active and frequent trading of portfolio securities. A high portfolio turnover rate (such as 100% or more) may result in greater expenses to the Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities. A high portfolio turnover rate may also result in an increase in taxable capital gains distributions to the Fund's shareholders and an increased likelihood that the capital gains will be taxable at ordinary rates.

**Preferred Stock Risk.** Typically, a rise in interest rates causes a decline in the value of preferred stock. In market environments where interest rates are rising, issuers may be less willing or able to make payments on securities when due. Preferred stocks are also subject to credit and default risk, which is the possibility that an issuer of preferred stock will fail to make its dividend payments. Preferred stocks do not offer as great a degree of protection of capital or assurance of continued income as investments in corporate debt securities and are subordinated in right of payments to debt obligations. A preferred stock is subject to the risk that its value may decrease based on actual or perceived changes in the business or financial condition of the issuer of the stock, as well as market and economic conditions.

**Pricing Risk.** If market conditions make it difficult to value some investments, the Fund may value these investments using more subjective methods, such as fair value pricing. In such cases, the value determined for an investment could be different than the value realized upon such investment's sale. As a result, you could pay more than the market value when buying Fund shares or receive less than the market value when selling Fund shares.

***www.cloughglobal.com***<sub>5</sub>

Clough Global Long/Short Fund

**Security Selection Risk.** The securities in the Fund's portfolio may decline in value. The Adviser's analysis and portfolio management practices may not achieve the desired results.

**Short Sale Risk.** If the Fund sells a security, including an ETF or a basket of securities short and subsequently has to buy the security back at a higher price, the Fund will lose money on the transaction. Any loss will be increased by the amount of compensation, interest or dividends and transaction costs the Fund must pay to a lender of the security. The amount the Fund could lose on a short sale is theoretically unlimited (as compared to a long position, where the maximum loss is the amount invested). The use of short sales, which has the effect of leveraging the Fund, could increase the exposure of the Fund to the market, increase losses and increase the volatility of returns.

**Small- to Mid-Capitalization Companies Risk.** The Fund's investments in securities of companies with small- to mid-sized market capitalizations can present higher risks than do investments in securities of larger companies. Prices of such securities can be more volatile than the securities of larger capitalization firms and can be more thinly traded. This may result in such securities being less liquid.

**Performance Information** 

The following information provides some indication of the risks of investing in the Fund by showing how the Fund's performance has varied over time. The performance shown for the period prior to September 30, 2015 is that of an unregistered investment fund (the "Predecessor Fund") that was managed by the Adviser since its inception and was reorganized into the Fund on September 30, 2015, 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, except as noted below, has not been adjusted to reflect Fund expenses. If it had been so adjusted, the Predecessor Fund's performance would have been higher for that period. Performance information for Investor Class and Class C has been adjusted to reflect Rule 12b-1 fees and shareholder servicing fees, as applicable.

Prior to December 1, 2017, Investor Class shares were designated as "Class A" shares, and carried a maximum initial sales charge of 5.50%. In addition, certain purchases of Investor Class shares (then known as "Class A" shares) made before December 1, 2017 were subject to a contingent deferred sales charge ("CDSC") if such shares were redeemed within one year, with certain exceptions. The bar chart figures do not include any applicable sales charges that investors may pay when they buy or sell shares of the Fund. If such sales charges were included, the returns would be lower. The table compares the Fund's average annual return for the stated period to two broad-based securities market indices. The indices are not actively managed and are not available for direct investment. The bar chart and performance table assume reinvestment of dividends and distributions. The Fund's past performance (before and after taxes) does not necessarily indicate how it will perform in the future. Updated performance information is available on the Fund's website at www.cloughglobal.com or by calling 855.425.6844.

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|:---|:---|
| 6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Prospectus \| February 28, 2023*** |

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**Annual Total Returns (years ended 12/31) Investor Class Shares**![](fp0082174-1_7.jpg)

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| | | |
|:---|:---|:---|
| Best Quarter: | June 30, 2020 | 15.69% |
| Worst Quarter: | December 31, 2018 | (14.11%) |

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After-tax returns are calculated using the historically highest individual U.S. federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on your individual tax situation and may differ from those shown in the table below. The after-tax return information shown below does not apply to Fund shares held through a tax-deferred account, such as a 401(k) plan or an IRA.

After-tax returns are only shown for Investor Class shares of the Fund and do not reflect the maximum initial sales charge of 5.5% imposed on such shares (then known as "Class A" shares) purchased prior to December 1, 2017 or any redemptions of Class A shares purchased before December 1, 2017 that were subject to a CDSC. After-tax returns for Class C shares, Class A shares and Class I shares will vary from those shown for Investor Class shares due to varying sales charges and expenses among the classes.

**Average Annual Total Returns** 

(for periods ended December 31, 2022)

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|:---|:---|:---|:---|
|  | **1 Year** | **5 Years** | **Since Inception <br> (December 31, 2014)** |
| **Investor Class Shares** |  |  |  |
| Return Before Taxes | (27.00%) | (1.40%) | 0.64% |
| Return After Taxes on Distributions | (27.00%) | (2.27%) | 0.64% |
| Return After Taxes on Distributions and Sale of Fund Shares | (15.99%) | (1.07%) | 0.47% |
| **Class A Shares** |  |  |  |
| Return Before Taxes | (31.40%) | (2.61%) | (0.39%) |
| **Class C Shares** |  |  |  |
| Return Before Taxes | (28.63%) | (2.23%) | (0.10%) |
| **Class I Shares** |  |  |  |
| Return Before Taxes | (27.23%) | (1.25%) | 0.60% |
| **MSCI All-Country World Index** *(reflects no deduction for fees, expenses or taxes)* | (17.96%) | 5.75% | 7.29% |
| **HFRI Equity Hedge Index** *(reflects no deduction for fees, expenses or taxes)\** | (10.13%) | 4.55% | 5.01% |

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*\** *The HFRI Equity Hedge Index shows how the Fund's performance compares against the returns of similar investments. 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 filing, but is subject to change outside of the control of the Fund and its affiliates.* 

**INVESTMENT ADVISER** 

Clough Capital Partners L.P. is the investment adviser to the Fund.

**PORTFOLIO MANAGERS** 

Charles I. Clough, Jr., Chairman and Co-Chief Investment Officer of the Adviser, has been a co-portfolio manager of the Fund since inception in September 2015.

**PURCHASE AND SALE OF FUND SHARES** 

The minimum investment in Investor Class shares, Class A shares and Class C shares is $500 for tax-deferred accounts and $2,500 for other accounts. The minimum investment in Class I shares is $1,000,000. Investors generally may meet the minimum investment amount by aggregating multiple accounts within the Fund. There is no subsequent investment minimum.

Purchases and redemptions can be made only through institutional channels, such as financial intermediaries and retirement platforms. You should contact your financial intermediary or refer to your plan documents for information on how to invest in the Fund.

**TAX INFORMATION** 

The Fund intends to make distributions that may be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan or an individual retirement account. You may be taxed later upon withdrawal of monies from such tax-deferred arrangements.

**PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL INTERMEDIARIES** 

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment. Ask your salesperson or visit your financial intermediary's Web site for more information.

***www.cloughglobal.com***<sub>7</sub>

Clough Global Long/Short Fund

**Investment Objective and Principal Investment Strategies** 

*This section describes the Fund's investment objective and principal investment strategies. See "More on the Fund's Investments and Related Risks" in this Prospectus and the Statement of Additional Information ("SAI") about the Fund's investments and the risks of investing.* 

**What is the Fund's Investment Objective?** 

The Fund seeks to provide investors with long-term capital appreciation.

While there is no assurance that the Fund will achieve its investment objective, the Fund endeavors to do so by following the strategies and policies described in this Prospectus.

The Fund's Board of Trustees (the "Board") may change the Fund's investment objective or the Fund's principal investment strategies without a shareholder vote, upon notice to shareholders. If there is a material change to the Fund's investment objective or principal investment strategies, you should consider whether the Fund remains an appropriate investment for you.

**What are the Fund's Principal Investment Strategies?** 

The Fund seeks to achieve its investment objective primarily by taking long positions and short positions in equity securities in both U.S. and non-U.S. markets. There is no assurance that the Fund will achieve its investment objective.

The Fund invests primarily in a broad selection of global equity securities, including preferred stock. Depending on the Adviser's outlook, the Fund may, at times, be more heavily invested in equity securities in U.S. markets or in equity securities in other markets around the world, including securities of multinational companies. Under normal circumstances, the Fund expects to invest in securities of issuers located in at least three countries (in addition to the United States). Unless market conditions are deemed unfavorable, the Fund expects that the market value of the Fund's long and short positions in securities of issuers organized or located outside the United States, issuers doing a substantial amount of business outside the United States (greater than 50% of revenues derived from outside of the United States), and, in the case of an ETF, where a majority of the securities in which the ETF invests have the foregoing characteristics will represent at least 40% of the Fund's net assets. Multinational companies include those organized or located in the United States that do a substantial amount of business outside the United States. Investments in non-U.S. markets will be made primarily through securities such as common shares, depositary receipts (which evidence ownership of underlying foreign securities) such as American Depositary Receipts ("ADRs"), European Depositary Receipts ("EDRs"), Global Depositary Receipts ("GDRs"), and registered investment companies (including ETFs). The Fund may also use derivatives, such as swaps and participation notes in order to gain access to foreign markets.

In addition to the Fund's primary investment strategy, the Adviser may employ currency strategies across foreign markets, including developing/emerging markets (countries that are included in the MSCI Emerging Markets Index), using derivatives, such as forward foreign currency contracts, futures, and swaps to seek to hedge against foreign exchange risk. The Fund does not intend to use leverage in the form of borrowings, and will generally limit its investment holdings to a maximum of 100% of the Fund's net assets.

The Fund will use a variety of investment techniques designed to capitalize on declines in the market prices of equity securities or declines in market indices (e.g., the Fund may establish short positions in specific stocks or stock indices) based on the Adviser's investment outlook, including by taking both long and short positions. Short positions will generally not exceed 50% of the Fund's net assets. The Fund's net equity exposure (measured as the market value of long positions minus the market value of short positions) is generally expected to range between 50%-100% of the Fund's net assets. A higher net exposure generally reflects the Adviser's belief there are relatively better investment opportunities in securities that it expects to appreciate in value than in securities it expects to decline in value (and may also indicate that the Adviser has a relatively positive view of equity markets), while a lower net exposure generally reflects the reverse, although in each case other factors could also cause the Adviser to choose to increase or decrease the Fund's net exposure.

Should the Adviser believe that extraordinary conditions affecting financial markets warrant, the Fund may temporarily be primarily invested in money market securities, money market mutual funds or other short-term debt securities. When the Fund is invested in these instruments for temporary or defensive purposes, it may be less likely to achieve its investment objective.

The Fund generally seeks to limit volatility in returns to below that of broad global equity indices, such as the MSCI All-Country World Index, as measured by the standard deviation (the average deviation of a return series from its mean). The Adviser may employ various hedging strategies for return generation, or to express a specific view on an industry or individual company (including through investments in ETFs, options on securities, and options on stock indices) and other techniques (for example, by utilizing short positions and by managing currency hedging exposure, derivatives positions, cash balances and U.S. Treasury securities investments) in an effort to limit the Fund's exposure to declines in markets, regions, industries and/or individual securities.

The Fund may invest in issuers of any capitalization and size. Generally, securities will be purchased or sold by the Fund on securities exchanges and in the over-the-counter market. However, the Fund may hold securities that are illiquid or that are only infrequently traded.

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The Adviser may, from time to time, invest the Fund's cash balances in any investments it deems appropriate, including, without limitation and as permitted under the 1940 Act, money market funds, repurchase agreements, U.S. Treasury and U.S. agency securities, municipal bonds and bank accounts.

**Investment Selection** 

The Fund seeks to achieve its investment objective by applying a fundamental research-driven investment process. The Adviser believes that attractive investment returns can be achieved when key, proprietary insights into industry or economic trends are discovered, and their significance understood, before they become obvious to other investors. Within this context, the investment process will focus on investing in a number of major global investment themes identified by the Adviser. Industry consolidation, technological change, an emerging shortage of a product or raw material which derives from a period of under-investment, changes in government regulation or major economic or investment cycles are examples of types of themes the Adviser could emphasize in its investment focus. Attractive investment themes will often be influenced by global trends, which make investments in certain industries across more than one geographic market likely.

Once attractive themes are identified, the Adviser generally utilizes a "bottom-up" research process to identify companies it believes are best positioned to benefit from those specific themes, as well as companies that the Adviser believes may be vulnerable in light of these themes. Individual positions will be selected based upon a host of qualitative and quantitative factors, including, but not limited to, such factors as a company's competitive position, quality of company management, quality and visibility of earnings and cash flow, balance sheet strength and relative valuation. Issuers with strengths in these areas (or in such other areas that the Adviser determines are relevant) may be attractive opportunities for long investments. Conversely, issuers facing profit headwinds, balance sheet weaknesses, competitive pressures or adverse regulatory changes, among other challenges, may present attractive opportunities as short positions when the Adviser believes their value is likely to decline over some period of time. This approach may provide investment opportunities in various levels of a company's capital structure, including common and preferred stock. The Adviser will identify geographic areas (in particular, emerging markets, which the Adviser considers to be countries that are included in the MSCI Emerging Markets Index) in which it intends to invest a portion of the Fund's assets and how much to invest in that geographic location. In addition to identifying and purchasing individual securities in these markets, the Adviser may purchase ETFs to gain wider exposure to particular markets or regions without incurring the expense of purchasing numerous foreign securities, and thereby indirectly rely on the managers of such ETFs to identify the companies in those regions in which to invest.

Under the Fund's theme-oriented investment approach, investment positions may be focused in only a relatively small number of sectors. The Fund will seek to broadly invest its assets within its investment themes, as appropriate, to lower volatility. Individual equity positions on both the long and short side of the portfolio will typically be below 5% of total assets at the time of investment. (Investments in ETFs may exceed 5% of total assets at the time of investment.)

The Fund's portfolio will be actively managed and securities may be bought or sold on a daily basis. Investments may be added to the portfolio if they satisfy value-based criteria or contribute to the portfolio's risk profile. Investments may be removed from the portfolio if the Adviser believes that their market value exceeds full value, they add inefficient risk or the initial investment thesis fails.

**More on the Fund's Investments and Related Risks** 

*The Fund's investment objective and its principal investment strategies are described above under "Investment Objective and Principal Investment Strategies." This section provides additional information about the Fund's investment strategies and certain portfolio management techniques the Fund may use, as well as the principal and other risks that may affect the Fund's portfolio. The principal risks are listed below in alphabetical order, not in order of importance. Additional information about some of these investments and portfolio management techniques and their associated risks is included in the Fund's SAI, which is available without charge upon request (see back cover).* 

**Additional Information about Principal Investment Strategies and Principal Risks** 

This section includes additional information about the Fund's principal investment strategies and principal risks. More detailed information about these strategies and risks is included in the Fund's SAI.

*Counterparty* 

A financial institution or other counterparty with whom the Fund does business, or that underwrites, distributes or guarantees any investments or contracts that the Fund owns or is otherwise exposed to, including the counterparty to an OTC derivatives contract, may decline in financial health and become unable to honor its commitments. This could cause losses for the Fund or could delay the return or delivery of collateral or other assets to the Fund.

*Currency Strategies* 

The success of the Fund's currency strategies depends, in part, on the effectiveness and implementation of the Adviser's analysis and methodology. There can be no assurance that the Adviser's analysis and methodology will be successful, as this will ultimately depend on many different factors. If these strategies prove unsuccessful, losses to the Fund may be significant and may substantially exceed the intended level of market exposure for the currency strategies. As part of its currency strategies, the Fund will have substantial exposure to the risks of non-U.S. currency markets. Foreign currency rates may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and economic or political developments in the United States or abroad. As a result, the Fund's exposure to foreign currencies could cause lower returns

***www.cloughglobal.com***<sub>9</sub>

Clough Global Long/Short Fund

or even losses to the Fund. Although the Adviser seeks to limit these risks through the aggregation of various long and short positions, there can be no assurance that it will be able to do so.

*Depositary Receipts* 

There are also risks associated with ADRs. The issuers of unsponsored depositary receipts are not obligated to disclose information that is, in the United States, considered material. Therefore, there may be less information available regarding these issuers and there may not be a correlation between such information and the market value of the depositary receipts. Depositary receipts are generally subject to the same risks as the foreign securities that they evidence or into which they may be converted.

*Derivatives* 

The Fund may use derivatives, which are financial contracts whose values depend on, or are derived from, the values of underlying assets, currencies, reference rates or indices. The Fund may use derivatives, such as forward foreign currency contracts, futures, and swap agreements, to employ its currency strategies and to seek to hedge against foreign exchange risk. The Fund may also use derivatives, such as options on securities, options on stock indices, swaps and participation notes, to gain access to foreign markets.

***Forward Foreign Currency Contracts.*** Forward foreign currency exchange transactions are OTC contracts to purchase or sell a specified amount of a specified currency or multinational currency unit at a price and future date set at the time of the contract. Forward foreign currency exchange contracts do not eliminate fluctuations in the value of non-U.S. securities but rather allow the Fund to establish a fixed rate of exchange for a future point in time. OTC markets are less transparent and operate with fewer rules than do exchanges.

***Futures Contracts.*** The Fund may invest in futures that trade on either an exchange or over-the-counter. A futures contract obligates the seller to deliver (and the purchaser to take delivery of) the specified security, commodity or currency underlying the contract on the expiration date of the contract at an agreed upon price. An index futures contract obligates the seller to deliver (and the purchaser to take) an amount of cash equal to a specific dollar amount multiplied by the difference between the value of a specific index at the close of the last trading day of the contract and the price at which the agreement is made. No physical delivery of the underlying securities in the index is made. Generally, these futures contracts are closed out prior to the expiration date of the contracts.

***Swap Agreements.*** A swap agreement is a commitment between two parties to make or receive payments based on agreed upon terms and whose value and payments are derived by changes in the value of an underlying financial instrument. Interest rate swaps are contracts involving the exchange between two contracting parties of their respective commitments to pay or receive interest (e.g., an exchange of floating rate payments for fixed-rate payments). Currency rate swaps are contracts involving the exchange between two contracting parties of principal and interest in one currency for the same in another currency.

***Participation Notes.*** The Fund may invest a portion of its assets in participation notes. Participation notes generally are issued by banks or broker-dealers and are promissory notes that are designed to offer a return linked to the performance of a particular underlying equity security or market. The return on a participation note that is linked to a particular underlying security generally is increased to the extent of any dividends paid in connection with the underlying security. However, the holder of a participation note typically does not receive voting rights as it would if it directly owned the underlying security. Participation notes constitute direct, general and unsecured contractual obligations of the banks or broker-dealers that issue them, which therefore subjects the Fund to counterparty risk. Investments in participation notes involve certain risks in addition to those associated with a direct investment in the underlying foreign companies or foreign securities markets whose return they seek to replicate. For instance, there can be no assurance that there will be a trading market for a participation note or that the trading price of a participation note will equal the underlying value of the foreign company or foreign securities market that it seeks to replicate. As the purchaser of a participation note, the Fund is relying on the creditworthiness of the counterparty issuing the participation note and has no rights under a participation note against the issuer of the underlying security. Therefore, if such counterparty were to become insolvent, the Fund would lose its investment. Due to liquidity and transfer restrictions, the secondary markets on which participation notes are traded may be less liquid than the markets for other securities, or may be completely illiquid, which may lead to the absence of readily available market quotations for securities held by the Fund.

Risks associated with using a derivative includes the risks that the derivative will not be well correlated with the security, index or currency to which it relates; the derivative may result in a loss or missed opportunity; the Fund will be unable to sell the derivative because of an illiquid secondary market; a counterparty will be unwilling or unable to meet its obligation; and the derivative transaction may expose the Fund to the effects of economic leverage, which could increase the Fund's exposure to the market and magnify potential losses. Some transactions may give rise to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the Fund to greater risk and increase its costs. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations. Increases and decreases in the value of the Fund's portfolio will be magnified when the Fund uses leverage.

There is no guarantee that derivatives, to the extent employed, will have the intended effect, and their use could cause lower returns or even losses to the Fund. The use of derivatives by a fund in an effort to hedge risk may reduce the opportunity for gain by offsetting the positive effect of favorable price movements. A financial institution or other counterparty with whom the Fund does business, or that underwrites, distributes or guarantees

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any investments or contracts that the Fund owns or is otherwise exposed to, may decline in financial health and become unable to honor its commitments. This could cause losses for the Fund or could delay the return or delivery of collateral or other assets to the Fund.

*Developing/Emerging Markets Risk* 

Investments in the securities of issuers based in developing/emerging markets are subject to greater levels of risk and uncertainty than investments in more-developed foreign markets, since developing/emerging market securities may present market, credit, currency, liquidity, legal, and other risks greater than, or in addition to, the risks of investing in developed foreign countries. The risks may be heightened by political changes, changes in taxation or currency controls that could adversely affect the values of these investments. Developing/emerging markets have been more volatile than the markets of developed countries with more mature economies. In addition, shareholders of developing/emerging market issuers, such as the Fund, often have limited rights and few practical remedies in developing/emerging markets. Finally, the risks associated with investments in developing/emerging markets often are significant, and vary from jurisdiction to jurisdiction and company to company.

*Equity Securities and Stock Market* 

The Fund may invest in all types of equity securities including common and preferred stock. The Fund may invest in the equity securities of companies of all sizes, including those of small companies. The Fund is affected by how the stock market performs. When stock prices fall, you should expect the value of your investment to fall as well. Stock prices can be hurt by poor management, shrinking product demand and other business risks. These factors may affect single companies as well as groups of companies. Movements in financial markets may adversely affect a stock's price, regardless of how well the company performs. In addition, the Adviser's analysis and portfolio management practices may not achieve the desired results.

*Focus* 

To the extent that the Fund focuses its investments in particular asset classes or sectors of the economy, any market price movements, regulatory or technological changes, or economic conditions affecting companies in those asset classes or sectors will have a significant impact on the Fund's performance. As a result, the Fund's performance may fluctuate more widely than if the Fund were invested more evenly across asset classes or sectors of the economy.

*Foreign Investment* 

The Fund may invest in equity securities issued by companies organized outside of the United States, including both developed and emerging markets. The Fund may also invest in debt securities of U.S. and foreign governments, government-related agencies and companies. Foreign securities may include American Depositary Receipts ("ADRs"). While the Fund values all of its investments in U.S. dollars, foreign securities may be denominated and/or traded in foreign currencies.

As a result, the Fund faces the risks inherent in foreign investing. Adverse political, economic or social developments could undermine the value of the Fund's investments or prevent the Fund from realizing its full value. Financial reporting standards for companies based in foreign markets differ from those in the United States. Additionally, foreign securities markets generally are smaller and less liquid than U.S. markets. To the extent that the Fund invests in non-U.S. dollar denominated foreign securities, changes in currency exchange rates may affect the U.S. dollar value of foreign securities or the income or gain received on these securities. Foreign governments may restrict investment by foreigners, limit withdrawal of trading profit or currency from the country, restrict currency exchange or seize foreign investments. The investments of the Fund may also be subject to foreign withholding taxes. Foreign brokerage commissions and other fees are generally higher than those for U.S. investments, and the transactions and custody of foreign assets may involve delays in payment, delivery or recovery of money or investments. Foreign markets can have liquidity risks beyond those typical of U.S. markets. Because foreign exchanges generally are smaller and less liquid than U.S. exchanges, buying and selling foreign investments can be more difficult and costly. Relatively small transactions can sometimes materially affect the price and availability of securities. In certain situations, it may become virtually impossible to sell an investment in an orderly fashion at a price that approaches the Adviser's estimate of its value. For the same reason, it may at times be difficult to value the Fund's foreign investments. In the event of nationalization, expropriation, confiscatory taxation, or other confiscation, the fund could lose a substantial portion of, or its entire investment in, a foreign security.

To the extent the Fund invests in issuers in emerging markets, the risks may be greater than in more developed markets. Investments in emerging markets are often considered speculative. Emerging market countries typically have economic and political systems that are less developed, and can be expected to be less stable than developed markets. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation.

*Hedging* 

The term "hedging" often is used to describe a transaction or strategy that is intended to mitigate risk of loss in some fashion. Hedging transactions on securities generally are used to attempt to hedge against price movements in one or more particular securities positions that the Fund owns or intends to acquire. Hedging transactions on indices generally are used to attempt to hedge against price movements in markets, regions or sectors in which the Fund has invested or expects to invest. The Fund may also employ currency strategies to seek to hedge against foreign exchange risk (see "Currency Strategies" above). While hedging can reduce losses, it can also reduce or eliminate gains or cause losses if the market moves in a manner different from that anticipated by the Fund or if the cost of the hedge outweighs the benefit of the hedge. Hedging transactions may also not perform

***www.cloughglobal.com***<sub>11</sub>

Clough Global Long/Short Fund

as expected, in which case any losses on the holdings being hedged may not be reduced or may be increased. There can be no assurance that the Fund's hedging strategies will be effective.

The Fund may, but is under no obligation to, from time to time employ a variety of investment techniques, including those described below, to seek to hedge against fluctuations in the price of portfolio securities, to enhance total return or to provide a substitute for the purchase or sale of securities. Some of these techniques, such as purchases of put and call options, options on stock indices and stock index futures may be used as hedges against or substitutes for investments in equity securities. The Fund's ability to utilize any of the techniques described may be limited by restrictions imposed on its operations in connection with obtaining and maintaining its qualification as a regulated investment company under the Code. Additionally, other factors (such as cost) may make it impractical or undesirable to use any of these investment techniques from time to time.

*Investment Companies* 

The Fund may invest in securities of other investment companies, including ETFs (including leveraged ETFs), open-end funds and closed-end funds. ETFs may be structured as index or actively-managed ETFs. An index ETF is an investment company that seeks to track the performance of an index by holding in its portfolio shares of all the companies, or a representative sample of the companies, that are components of a particular index. The Fund may invest in ETFs both to supplement and to fill particular asset classes or sectors, particularly international equities, emerging markets, fixed-income and alternative investments. The Fund may also invest in ETFs in an effort to limit the Fund's exposure to declines in markets, regions and/or industries. Closed-end funds are investment companies that typically issue a fixed number of shares that trade on a securities exchange or over-the-counter.

The risks of investment in other investment companies typically reflect the risk of the types of securities in which such other investment companies invest. Investments in ETFs and closed-end funds, which trade on a securities exchange, are subject to the additional risk that shares of the ETF or closed-end fund may trade at a premium or discount to their net asset value per share. When the Fund invests in another investment company, shareholders of the Fund bear their proportionate share of the other investment company's fees and expenses as well as their share of the Fund's fees and expenses. To the extent that the Fund's allocations favor investment companies with higher expenses, the overall cost of investing paid by the Fund will be higher.

Because the Fund may invest in other investment companies, the Fund's performance will be directly related to the performance of such investment companies. To the extent that a given investment company underperforms its benchmark or its fund peer group, it may contribute to the underperformance of the Fund.

*Investment Themes* 

The Fund's investment program depends on the Adviser's identification and development of global or regional investment themes, and the Fund's performance may suffer if such themes, which can be inherently challenging to identify, are not well identified, or do not unfold as anticipated. Failure to correctly identify or develop the themes that will guide the Fund's portfolio investments, or the failure of a theme to unfold in the way the Adviser anticipates, may result from many causes, including the following: governments or others may decide to oppose or delay certain economic, social or political developments that are the basis of investment themes; demographic or economic data necessary to understand correctly the way in which certain themes may unfold in some countries may be incorrect or incomplete; development of themes and their longevity may require attention to subtle cultural factors not always apparent to outside observers; or social and political changes or natural disasters in some parts of the world may alter the underlying conditions or affect the availability of natural resources necessary to an emerging theme.

*Liquidity* 

In certain situations, it may be difficult or impossible to sell an investment in an orderly fashion at an acceptable price. This risk can be ongoing for any security that does not trade actively or in large volumes, for any security that trades primarily on smaller markets, and for investments that typically trade only among a limited number of large investors (such as certain types of derivatives or restricted securities). In unusual market conditions, even normally liquid securities may be affected by a degree of liquidity risk. This may affect only certain securities or an overall securities market.

*Portfolio Turnover* 

The length of time the Fund has held a particular security is not generally a consideration in investment decisions. A change in the securities held by the Fund is known as "portfolio turnover." The Fund may engage in active and frequent trading of portfolio securities to achieve its investment objective and principal investment strategies. A higher portfolio turnover rate (such as 100% or more) may result in greater expenses to the Fund, including brokerage commissions or dealer mark-ups and other transaction costs on the sale of securities and reinvestments in other securities, although such expenses are not reflected in the Fund's fees and expenses table. Such sales may also result in realization of taxable capital gains, specifically short-term capital gains, which are taxed at ordinary U.S. federal income tax rates when distributed to shareholders who are individuals. The trading costs and tax effects associated with portfolio turnover may adversely affect the Fund's performance.

*Preferred Stock* 

Preferred stocks are equity securities in the sense that they do not represent a liability of the issuer and, therefore, do not offer as great a degree of protection of capital or assurance of continued income as investments in corporate debt securities. In addition, preferred stocks are subordinated in right of payment to all debt obligations and creditors of the issuer, and convertible

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preferred stocks may be subordinated to other preferred stock of the same issuer. Preferred stocks are like debt obligations in that they normally have the right to receive dividends at a fixed rate when and as declared by the issuer's board of directors, but do not participate in other amounts available for distribution by the issuing corporation. Typically, a rise in interest rates causes a decline in the value of preferred stock. Preferred stocks are also subject to credit and default risk, which is the possibility that an issuer of preferred stock will fail to make its dividend payments. In addition, a preferred stock is subject to the risk that its value may decrease based on actual or perceived changes in the business or financial condition of the issuer of the stock, as well as market and economic conditions.

*Pricing* 

If market conditions make it difficult to value some investments, the Fund may value these investments using more subjective methods, such as fair value pricing. In such cases, the value determined for an investment could be different than the value realized upon such investment's sale. As a result, you could pay more than the market value when buying fund shares or receive less than the market value when selling Fund shares.

Secondary markets may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods, which may prevent the Fund from being able to realize full value and thus sell a security for its full valuation. This could cause a material decline in the Fund's net asset value.

*Security Selection* 

The success of the Fund's investment strategies depends, in part, on the effectiveness and implementation of the Adviser's analysis and methodology with respect to security selection. The securities in the Fund's portfolio may decline in value. The Adviser's analysis and portfolio management practices may not achieve the desired results.

*Short Sales* 

The Fund may seek to hedge investments or realize gains through the use of short sales. Short sales are transactions in which the Fund sells a security it does not own, in anticipation of a decline in the market value of that security. To complete such a transaction, the Fund must borrow the security to make delivery to the buyer. The Fund then is obligated to replace the security borrowed by purchasing it at the market price at or prior to the time of replacement. The price at such time may be more or less than the price at which the security was sold by the Fund. Until the security is replaced, the Fund is required to repay the lender any dividends or interest that accrues during the period of the loan. To borrow the security, the Fund also may be required to pay a premium, which would increase the cost of the security sold. The net proceeds of the short sale will be retained by the broker (or by the Fund's custodian in a special custody account), to the extent necessary to meet margin requirements, until the short position is closed out. The Fund also will incur transaction costs in effecting short sales.

If the Fund sells a security, an ETF or basket of securities short and subsequently has to buy the security back at a higher price, the Fund will lose money on the transaction. Any loss will be increased by the amount of compensation, interest or dividends and transaction costs the Fund must pay to a lender of the security. The amount the Fund could lose on a short sale is theoretically unlimited (as compared to a long position, where the maximum loss is the amount invested). The use of short sales, which has the effect of leveraging the Fund, could increase the exposure of the Fund to the market, increase losses and increase the volatility of returns.

*Small- and Medium-Size Company Risk* 

To the extent that a Fund invests in small- and mid-capitalization stocks, the Fund is likely to be more volatile than a fund that invests only in large companies. Small- and medium-sized companies are generally riskier because they may have limited product lines, capital and managerial resources. Their securities may trade less frequently and with greater price swings.

**Additional Strategies and Policies** 

This section includes information about additional strategies and policies that the Fund may utilize in pursuit of its investment objective. Additional information about the Fund's strategies and policies is included in the Fund's SAI.

*Illiquid Investments* 

The Fund may invest up to 15% of its net assets in illiquid investments. An illiquid investment is a security or other position that cannot be disposed of quickly in the normal course of business (within seven calendar days) without the sale or disposition significantly changing the market value of the investment. For example, some securities are not registered under U.S. securities laws and cannot be sold to the U.S. public because of Securities and Exchange Commission ("SEC") regulations (these are known as "restricted securities"). Under procedures adopted by the Board, certain restricted securities may be deemed liquid and will not be counted toward this 15% limit. For example, Rule 144A securities, Section 4(2) commercial paper and municipal lease obligations purchased by the Fund may be treated as liquid only if the Adviser determines that there is a "readily available market" for them. The Adviser shall take into account all relevant considerations when making this determination.

*Investment Limitations* 

Except with respect to the illiquid investment restrictions set forth above and the borrowing restrictions set forth in the SAI, all limitations on the Fund's investments listed in this Prospectus and in the SAI will apply at the time of investment. The Fund would not violate these limitations unless an excess or deficiency occurs or exists immediately after and as a result of an investment. Unless otherwise stated, references to assets in the percentage limitations on the Fund's investments refer to total gross assets. Temporary Defensive Investments

The Fund may, from time to time, take temporary defensive investment positions that are inconsistent with the Fund's principal investment strategies in attempting to respond to

***www.cloughglobal.com***<sub>13</sub>

Clough Global Long/Short Fund

adverse market, economic, political or other conditions and factors. When taking a temporary defensive position, the Fund may invest all or a substantial portion of its total assets in cash or cash equivalents, government securities, and short-term or medium-term fixed income securities, which may include, but not be limited to, shares of other mutual funds, U.S. Treasury Bills, U.S. agency securities, municipal bonds and repurchase agreements. The Fund may be less likely to achieve its investment objective while it is investing defensively.

*Cash Position* 

The Fund may not always stay fully invested. For example, when the portfolio manager believes that market conditions are unfavorable for profitable investing, or when he is otherwise unable to locate attractive investment opportunities, the Fund's cash or similar investments may increase. In other words, cash or similar investments generally are a residual – they represent the assets that remain after the Fund has committed available assets to desirable investment opportunities. When the Fund's investments in cash or similar investments increase, it may not participate in market advances to the same extent that it would if the Fund remained more fully invested.

**Disclosure of Portfolio Holdings** 

The Trust's policies and procedures with respect to the disclosure of the Fund's portfolio securities are described in the Fund's SAI. The Fund's full holdings will be disclosed on its website (www.cloughglobal.com) for the most recent month-end after a 30 calendar day delay from the end of the month.

**Management** 

Clough Capital Partners L.P. (the "Adviser"), subject to the oversight of the Board, provides investment advisory services to the Fund. The Adviser is a Delaware limited partnership with principal offices at 53 State Street, 27th Floor, Boston, Massachusetts 02109. The Adviser is a registered investment adviser under the Investment Advisers Act of 1940, and provides investment services to other investment companies, private funds and separate accounts. The Adviser was founded in 2000 and, as of December 31, 2022, had investment management authority with respect to approximately $1.5 billion in assets under management.

Pursuant to the Investment Advisory Agreement (the "Advisory Agreement"), the Fund pays the Adviser an annual management fee of 1.10% based on the Fund's average daily net assets. The management fee is paid on a monthly basis. The initial term of the Advisory Agreement was two years. The Board may extend the Advisory Agreement for additional one-year terms. The Board, shareholders of the Fund or the Adviser may terminate the Advisory Agreement upon sixty (60) days' notice. A discussion regarding the basis for the Board's approval of renewal of the Fund's Advisory Agreement is provided in the Fund's semi-annual report to shareholders for the fiscal period ended April 30, 2022. During the fiscal year ended October 31, 2022, the Fund paid the Adviser a management fee equal to 0.15% of the Fund's average daily net assets (including any waivers and/or reimbursements). The Adviser has agreed contractually to limit the operating expenses of each class of the Fund (excluding Rule 12b-1 Distribution and Service Fees, Shareholder Services Fees, acquired fund fees and expenses, interest, taxes, brokerage costs and commissions, dividend and interest expense on short sales, litigation, indemnification and extraordinary expenses as determined under generally accepted accounting principles) to an annual rate of 1.25% through February 28, 2024. The Adviser is permitted to recover, on a class-by-class basis, any fees waived and/or expenses reimbursed under this letter agreement if such recovery does not cause total annual operating expenses to exceed the expense limitation in effect (i) at the time the expenses to be recovered were waived and/or reimbursed and (ii) at the time of such recovery. The Adviser will not be entitled to recover any such waived or reimbursed fees and expenses more than three years after the end of the fiscal year in which the fees were waived or expenses were reimbursed. The Adviser may not terminate this waiver arrangement without the approval of the Fund's Board of Trustees. During the fiscal year ended October 31, 2021, the Adviser did not recover any waived or reimbursed fees and expenses.

**The Portfolio Managers** 

The portfolio manager of the Fund is primarily responsible for the day-to-day management of the Fund's portfolio of securities. The portfolio manager is supported by the Adviser's Investment Review Committee and a broad team of investment professionals. Mr. Clough has served as a portfolio manager since the Fund's inception in September 2015.

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| | |
|:---|:---|
| **PORTFOLIO <br> MANAGERS** | **PAST 5 YEARS' BUSINESS EXPERIENCE** |
| Charles I. Clough, Jr., CFA | Chairman and Partner of the Adviser since 2000 and Co-Chief Investment Officer of the Adviser since 2019, and Portfolio Manager of the Fund since 2015. Mr. Clough earned his BA in History from Boston College and his MBA from the University of Chicago. |

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More information about each portfolio manager's compensation, other accounts managed by each portfolio manager and each portfolio manager's ownership of securities in the Fund is included in the SAI.

**Administrator, Distributor and Transfer Agent of the Fund** 

ALPS Fund Services, Inc. (the "Transfer Agent") serves as the Fund's administrator, fund accounting agent and transfer agent. ALPS Portfolio Solutions Distributor, Inc. (the "Distributor") serves as the Fund's distributor.

**Additional Information Regarding Contractual Arrangements** 

The Fund has entered into contractual arrangements with various parties that provide services to the Fund, including, among others, the Advisor, Distributor, and Transfer Agent, as described above and in the SAI. Fund shareholders are not parties to, or intended or "third-party" beneficiaries of, any of these contractual arrangements. These contractual arrangements are not intended to, nor do they, create in any individual shareholder

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| 14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Prospectus \| February 28, 2023*** |

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or group of shareholders any right, either directly or on behalf of the Fund, to either: (a) enforce such contracts against the service providers; or (b) seek any remedy under such contracts against the service providers.

This prospectus provides information concerning the Fund that you should consider in determining whether to purchase shares of the Fund. Each of this Prospectus, the SAI, or any contract that is an exhibit to the Fund's registration statement, is not intended to, nor does it, give rise to an agreement or contract between the Fund and any investor. Each such document also does not give rise to any contract or create rights in any individual shareholder, group of shareholders, or other person, other than with respect to any rights conferred explicitly by federal or state securities laws that may not be waived.

**Buying and Redeeming Shares** 

The Fund currently offers four classes of shares, Investor Class, Class A, Class C and Class I. Each share class of the Fund represents an investment in the same portfolio of securities, but each share class has its own sales charge and expense structure, allowing you to choose the class that best meets your situation. When you purchase shares of the Fund, you must choose a share class.

Factors you should consider in choosing a class of shares include:

&nbsp;&nbsp;&nbsp;&nbsp;● how long you expect to own the shares;

&nbsp;&nbsp;&nbsp;&nbsp;● how much you intend to invest; and

&nbsp;&nbsp;&nbsp;&nbsp;● total expenses associated with owning shares of each class; and

&nbsp;&nbsp;&nbsp;&nbsp;● whether you qualify for any reduction or waiver of sales charges (for example, Class A shares may be a less expensive option over time if you qualify for a sales charge reduction or waiver).

Investor Class, Class A and Class C shares are generally available only in connection with investments made through financial intermediaries. Investor Class, Class A and Class C shares are not offered directly to individual investors. Class I shares may be available on brokerage platforms offered by intermediaries that have agreed with the Fund's Distributor to offer such shares solely when acting as an agent for the investor. An investor transacting in Class I shares in these programs may be required to pay a commission and/or other compensation to the broker. Shares of the Fund are available in other share classes that have different fees and expenses.

For Investors with access to both Investor Class and Class C shares, Investor Class shares may be a less expensive option.

Class I shares are generally only made available in connection with investments made through financial intermediaries and large institutional investors. Large institutional investors may include, but are not limited to, corporations, public plans or foundations/endowments. Class I shares are not offered directly to individual investors.

Each investor's financial considerations are different. You should speak with your financial advisor to help you decide which share class is best for you. If your financial intermediary offers more than one class of shares, you should carefully consider which class of shares to purchase. Certain classes have higher expenses than other classes, which may lower the return on your investment.

Descriptions of sales charge waivers and/or discounts for Class A Shares with respect to certain financial intermediaries are reproduced in "Appendix A – Intermediary-Specific Sales Charge Waivers and Discounts" to this Prospectus based on information provided by the financial intermediary.

**Interclass Transfers** 

You may transfer shares of the Fund for another class of the Fund, provided you are eligible to invest in another class of the Fund in accordance with the criteria set forth in the prospectus for that share class. In the event that you no longer meet eligibility requirements for investment in one or more classes of shares of the Fund, the Fund or your authorized representative may elect to transfer your shares for another class of the Fund for which you are eligible. Interclass transfers are generally not taxable.

**Distribution and Services (12b-1) Plans for Investor Class, Class A and Class C** 

The Fund has adopted a separate plan of distribution for Investor Class, Class A and Class C shares, pursuant to Rule 12b-1 under the 1940 Act (each, a "Plan" and collectively, the "Plans").

Under the terms of the Plans, the Trust is authorized to make payments to the Distributor for remittance to financial intermediaries, as compensation for distribution and/or on-going shareholder servicing for the benefit of shareholders performed by such financial intermediaries for their customers who are investors in the Fund. Each Plan permits payment for services and related expenses in connection with a financial intermediary's administration of mutual fund distribution platforms that offer Investor Class, Class A and/or Class C shares of the Fund.

The Plans permit the Fund to make total payments at an annual rate of up to 0.25% of the Fund's average daily net assets attributable to its Investor Class and Class A shares, and 1.00% of the Fund's average daily net assets attributable to its Class C shares. Because these fees are paid out of the Fund's Investor Class, Class A and Class C shares on an ongoing basis, over time, they will increase the cost of an investment in Investor Class, Class A and Class C shares.

The Distributor may retain some or all compensation payable pursuant to the Plans under certain circumstances, including but not limited to, such as if a financial intermediary resigns as the broker/dealer of record, or such financial intermediary failing to meet certain eligibly standards to be able to continue to be the broker/dealer of record.

The Distributor is entitled to retain all fees paid under the Class C Plan for the first 12 months on any investment in Class C Shares to recoup the payment of commissions on sales of Class C Shares. Financial intermediaries will become eligible for Class C Plan compensation beginning in the 13th month following

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Clough Global Long/Short Fund

the purchase of Class C Shares. The Distributor may, pursuant to a written agreement between the Distributor and a particular financial intermediary, pay such financial intermediary 12b-1 fees prior to the 13th month following the purchase of Class C Shares should the financial intermediary forgo the commission.

**Services Plans for Investor Class and Class A Shares** 

The Fund has adopted non-Rule 12b-1 shareholder services plans (the "Services Plans") with respect to the Fund's Investor Class and Class A shares. Under the Services Plans, the Fund is authorized to pay financial intermediaries an aggregate fee in an amount not to exceed on an annual basis 0.10% of the average daily net asset value of the Investor Class and Class A shares of the Fund attributable to or held in the name of the financial intermediary for its clients as compensation for maintaining customer accounts that hold Fund shares. Each Services Plan fee is compensation for providing some or all of the following services or activities: (i) establishing and maintaining Fund shareholder accounts on a transaction processing and record keeping system, (ii) providing Fund shareholders with the ability to access current Fund information, including without limitation, share balances, dividend information and transaction history, and permitting the Fund's Transfer Agent to receive order instructions from or on behalf of Fund shareholders for the purchase or redemption of Shares. None of these activities includes distribution related services or activities. Any amount of the Services Plans fees not paid during the Fund's fiscal year for such servicing shall be reimbursed to the Fund.

**Payments to Financial Intermediaries** 

The Adviser and/or its affiliates may enter into arrangements to make payments for additional activities to select financial intermediaries intended to result in the sale of Fund shares and/ or other shareholder servicing activities out of the Adviser's own resources (which may include profits from providing advisory services to the Fund). The amount of the payments to different financial intermediaries may be different. The aggregate amount of these payments is determined by the Adviser and may be substantial. These payments may include amounts that are often referred to as "revenue sharing payments." The recipients of such payments may include the Distributor and its affiliates and other financial intermediaries through which investors may purchase Fund shares. In particular, the Adviser has agreed to make payments, based on the average net assets of the Fund, to the Distributor on an ongoing basis in consideration of certain distribution-related services provided by the Distributor to the Fund, the Adviser and/or its affiliates.

In some circumstances, revenue sharing payments may create an incentive for an intermediary or its employees or associated persons to recommend or sell shares of the Fund to you, rather than shares of another mutual fund. Please contact your financial intermediary's investment professional for details about revenue sharing payments it may be receiving.

**Administrative Fees (Networking, Omnibus Positioning Fee)** 

Select financial intermediaries may contract with the Fund, or its designees, to perform certain networking, recordkeeping, sub-accounting and/or administrative services for shareholders of the Fund. These activities are routinely processed through the National Securities Clearing Corporation's Fund/SERV and Trust Networking systems or similar systems. In consideration for providing these services, the financial intermediaries will receive compensation, which is typically paid by the Fund. Any such payment by the Fund to a financial intermediary for networking, recordkeeping, sub-accounting and/or administrative services are in addition to any 12b-1 related services provided to shareholders. For accounts sold through financial intermediaries, it is the primary responsibility of the financial intermediary to ensure compliance with investment minimums.

**Investment Minimums** 

The minimum initial investment in each of Investor Class shares and Class A shares and Class C shares is $500 for tax-deferred accounts and $2,500 for other accounts. The minimum initial investment in Class I shares is $1,000,000. Investors generally may meet the minimum initial investment amount by aggregating multiple accounts within the Fund. There is no minimum subsequent investment amount.

The Fund reserves the right to waive or lower minimum investment amounts. For accounts sold through financial intermediaries, it is the primary responsibility of the financial intermediary to ensure compliance with the minimum investment amounts.

**Share Purchases and Redemptions** 

Shares of the Fund may be purchased on any business day at the net asset value per share next determined after receipt of a purchase order. In order to buy or redeem shares at that day's price, you must place your order with the Fund or its agent before the New York Stock Exchange ("NYSE") closes (normally, 4 p.m. Eastern time). If the NYSE closes early, you must place your order prior to the actual closing time. Orders received by financial intermediaries prior to the close of trading on the NYSE will be confirmed at the offering price computed as of the close of the trading on the NYSE. It is the responsibility of the financial intermediary to insure that all orders are transmitted in a timely manner to the Fund. Otherwise, you will receive the next business day's price. The Fund reserves the right to refuse or cancel a purchase for any reason, including if it is believed that doing so would be in the best interests of the Fund and its shareholders.

Prospective investors may not purchase or redeem shares directly from the Fund. Shares are intended to be purchased or redeemed only through financial intermediaries. Contact your financial intermediary or refer to your plan documents for instructions on how to purchase or redeem shares.

Investors may be charged a fee if they effect transactions through a broker-dealer or agent. The Fund has authorized one or more broker-dealers to receive on its behalf purchase and redemption orders. Such broker-dealers are authorized to designate other financial intermediaries to receive purchase and redemption orders

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| 16 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Prospectus \| February 28, 2023*** |

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on the Fund's behalf. The Fund will be deemed to have received a purchase or redemption order when an authorized broker or, if applicable, a broker-dealer's authorized designee, receives the order. Customer orders are priced at the Fund's net asset value next computed after the orders are received by an authorized broker-dealer or the broker-dealer's authorized designee.

With certain limited exceptions, the Fund is available only to U.S. citizens or residents.

**Sales Charge When You Purchase Investor Class, Class A or Class C Shares** 

Below is a summary of certain features of Investor Class, Class A and Class C shares:

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| | | | |
|:---|:---|:---|:---|
|  | **Investor Class** | **Class A** | **Class C** |
| &nbsp;&nbsp;Initial Sales Charge  |  | &nbsp;&nbsp;Up to 5.50% |  |
| &nbsp;&nbsp;Contingent Deferred Sales Charge ("CDSC")  |  | &nbsp;&nbsp;None\* | &nbsp;&nbsp;1.00% on redemptions within 12 months |
| &nbsp;&nbsp;Distribution and Service Fees  | &nbsp;&nbsp;0.25% | &nbsp;&nbsp;0.25% | &nbsp;&nbsp;1.00% |
| &nbsp;&nbsp;Shareholder Services Fee  | &nbsp;&nbsp;0.10% | &nbsp;&nbsp;0.10% |  |
| &nbsp;&nbsp;Dividends  | &nbsp;&nbsp;Generally higher than Class C due to lower annual expenses | &nbsp;&nbsp;Generally higher than Class C due to lower annual expenses | &nbsp;&nbsp;Generally lower than Investor Class due to higher annual expenses |
| &nbsp;&nbsp;Typical Shareholder | &nbsp;&nbsp;Generally more appropriate for long-term investors | &nbsp;&nbsp;Generally more appropriate for long-term investors | &nbsp;&nbsp;Generally more appropriate for short-term investors |

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*\** *You may purchase Class A shares in amounts of $1 million or more without paying an initial sales charge, but if you redeem those shares within 12 months of purchase, you will pay a CDSC of 1.00%. See Section titled "Contingent Deferred Sales Charge" below.* 

The following table lists the sales charges that will be applied to your purchase of Class A shares, subject to the breakpoint discounts indicated in the tables and described below. The offering price is the net asset value per share plus the initial sales charge.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Purchase Amount** | &nbsp;&nbsp;**Sales Charge as <br> a Percentage of <br> Offering Price** | &nbsp;&nbsp;**Sales Charge <br> as a Percentage <br> of Net Amount <br> Invested** | &nbsp;&nbsp;**Dealer <br> Concession as <br> a Percentage of <br> Offering Price** |
| &nbsp;&nbsp;Less than $50,000  | &nbsp;&nbsp;5.50% | &nbsp;&nbsp;5.82% | &nbsp;&nbsp;4.75% |
| &nbsp;&nbsp;$50,000 but less than $100,000  | &nbsp;&nbsp;4.50% | &nbsp;&nbsp;4.71% | &nbsp;&nbsp;3.75% |
| &nbsp;&nbsp;$100,000 but less than $250,000  | &nbsp;&nbsp;3.50% | &nbsp;&nbsp;3.63% | &nbsp;&nbsp;2.75% |
| &nbsp;&nbsp;$250,000 but less than $500,000 | &nbsp;&nbsp;2.50% | &nbsp;&nbsp;2.56% | &nbsp;&nbsp;2.00% |
| &nbsp;&nbsp;$500,000 but less than $1 million  | &nbsp;&nbsp;2.00% | &nbsp;&nbsp;2.04% | &nbsp;&nbsp;1.60% |
| &nbsp;&nbsp;$1 million or greater\*  | &nbsp;&nbsp;0.00% | &nbsp;&nbsp;0.00% | &nbsp;&nbsp;0.00%\*\* |

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*\** *You may purchase Class A shares in amounts of $1 million or more without paying an initial sales charge, but if you redeem those shares within 12 months of purchase, you will pay a CDSC of 1.00%. See Section titled "Contingent Deferred Sales Charge" below.* 

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|:---|:---|
| *\*\**  | *Commissions (up to 1.00%) are paid by the Adviser to dealers who initiate and are responsible for certain Class A share purchases not subject to sales charges.*  |

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**Qualifying For a Reduction or Waiver of Class A Shares Sales Charge** 

You may be able to lower your Class A shares initial sales charge under certain circumstances. You can combine Class A shares you already own with your current purchase of Class A shares of the Fund to take advantage of the breakpoints in the sales charge schedule as set forth above. Certain circumstances under which you may combine such ownership of shares and purchases are described below. Contact your financial intermediary for more information.

In order to obtain a sales charge discount, you should inform your financial intermediary of other accounts in which there are Fund holdings eligible to be aggregated to meet a sales charge breakpoint. These other accounts may include the accounts described below in "Aggregating Accounts." You may need to provide documents such as account statements or confirmation statements to prove that the accounts are eligible for aggregation. The Letter of Intent described below requires historical cost information in certain circumstances. You should retain records necessary to show the price you paid to purchase Fund shares, as the Fund, its agents, or financial intermediaries may not retain this information.

The Fund may waive Class A sales charges on investor purchases including shares purchased by:

&nbsp;&nbsp;&nbsp;&nbsp;● Officers, directors, trustees and employees of the Adviser, sub-adviser (if any) and their respective affiliates;

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Clough Global Long/Short Fund

&nbsp;&nbsp;&nbsp;&nbsp;● Registered representatives and employees of financial intermediaries with a current selling agreement with the Distributor or the Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;● Immediate family members of all such persons as described above;

&nbsp;&nbsp;&nbsp;&nbsp;● Financial intermediary supermarkets and fee-based platforms; and

&nbsp;&nbsp;&nbsp;&nbsp;● Financial intermediaries who have entered into an agreement with the Fund's Distributor to offer shares to self-directed investment brokerage accounts that may or may not charge a transaction fee to its customers.

Whether a sales charge waiver is available for your retirement plan or charitable account depends upon the policies and procedures of your intermediary. Please consult your financial adviser for further information.

**Right of Accumulation** 

You may purchase Class A shares at a reduced initial sales charge determined by aggregating the dollar amount of the new purchase (measured by the offering price) and the total prior days net asset value (net amount invested) of all shares classes offered by the Fund (Class A, Class C, Investor Class and Class I) and held by you or held in accounts identified in the section of this Prospectus entitled "Aggregating Accounts," and applying the sales charge applicable to such aggregate amount. In order to obtain such a discount, you must provide sufficient information to your financial intermediary at the time of purchase to permit verification that the purchase qualifies for the reduced sales charge, such as account statements or confirmation statements. The right of accumulation is subject to modification or discontinuance at any time with respect to all shares purchased thereafter.

**Letter of Intent** 

You may obtain a reduced initial sales charge on Class A shares by signing a Letter of Intent indicating your intention to purchase $50,000 or more of Class A shares over a 13-month period. The term of the Letter of Intent will commence upon the date you sign the Letter of Intent. You must refer to such Letter of Intent when placing orders. With regard to a Letter of Intent, the amount of investment for purposes of applying the sales load schedule includes (i) the historical cost (what you actually paid for the shares at the time of purchase, including any sales charges) of all Class A shares acquired during the term of the Letter of Intent, minus (ii) the value of any redemptions of Class A shares made during the term of the Letter of Intent. Each investment made during the period receives the reduced sales charge applicable to the total amount of the investment goal. A portion of shares purchased may be held in escrow to pay for any sales charge that may be applicable. If the goal is not achieved within the period, you must pay the difference between the sales charges applicable to the purchases made and the charges previously paid, or an appropriate number of escrowed shares will be redeemed. Please contact your financial intermediary to obtain a Letter of Intent application.

**Aggregating Accounts** 

To take advantage of lower Class A shares initial sales charges on large purchases or through the exercise of a Letter of Intent or right of accumulation, investments made by you, your spouse and your children under age 21 may be aggregated if made for your own account(s) and/or certain other accounts such as:

&nbsp;&nbsp;&nbsp;&nbsp;● trust accounts established by the above individuals (or the accounts of the primary beneficiary of the trust if the person who established the trust is deceased);

&nbsp;&nbsp;&nbsp;&nbsp;● solely controlled business accounts; and

&nbsp;&nbsp;&nbsp;&nbsp;● single-participant retirement plans.

To receive a reduced sales charge under rights of accumulation or a Letter of Intent, you must notify your financial intermediary of any eligible accounts that you, your spouse and your children under age 21 have at the time of your purchase.

**Contingent Deferred Sales Charge** 

*Class A Shares* 

If you invest $1 million or more, either as a lump sum or through the Fund's accumulation or Letter of Intent programs, you can purchase Class A shares without an initial sales charge. However, a contingent deferred sales charge ("CDSC") of 1% may apply to Class A shares redeemed within the first 12 months after a purchase of $1 million or more. The CDSC will be based on the lower of the original purchase price or the value of the redemption of the Class A shares redeemed.

*Class C Shares* 

There is a 1% CDSC on any Class C shares you sell within 12 months of purchase. The CDSC will be based on the lower of the original purchase price or the value of the redemption of the Class C Shares redeemed.

*Waiver of CDSC* 

The Fund may waive the imposition of a CDSC on the redemption of Class C shares under certain circumstances and conditions, including without limitation, the following:

&nbsp;&nbsp;&nbsp;&nbsp;● redemptions following the death or permanent disability (as defined by Section 72(m)(7) of the Internal Revenue Code) of a shareholder if made within one year of death or the initial determination of permanent disability. The waiver is available only for shares held at the time of death or initial determination of permanent disability; and

&nbsp;&nbsp;&nbsp;&nbsp;● required minimum distributions from a tax-deferred retirement plan or an individual retirement account (IRA) as required under the Internal Revenue Code. The waiver of the CDSC for required distributions will be as a percentage of assets held in the Fund.

If you think you may be eligible for a CDSC waiver, contact your financial intermediary. You must notify the Fund prior to the redemption request to ensure your receipt of the waiver.

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| 18 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Prospectus \| February 28, 2023*** |

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**Redemption Payments** 

In all cases, your redemption price is the net asset value per share next determined after your request is received in good order. Redemption proceeds normally will be sent within seven days. However, if you recently purchased your shares by check, your redemption proceeds will not be sent to you until your original check clears, which may take up to 10 business days. Your redemption proceeds can be sent by check to your address of record or by wire transfer to a bank account designated on your application. Your bank may charge you a fee for wire transfers. Any request that your redemption proceeds be sent to a destination other than your bank account or address of record must be in writing and must include a signature guarantee.

Under normal market conditions, the Fund typically expects to meet redemption requests through holdings of cash or cash equivalents or through sales of portfolio securities. In unusual or stressed market conditions, in addition to the methods used in normal market conditions, the Fund may meet redemption requests through the use of redemptions in kind.

**Redemption Proceeds** 

The Fund is not responsible for losses or fees resulting from posting delays or non-receipt of redemption payments when shareholder payment instructions are followed.

**Redemptions In-Kind** 

The Fund reserves the right to make payment in securities rather than cash. If the Fund deems it advisable for the benefit of all shareholders that a redemption payment wholly or partly in-kind would be in the best interests of the Fund's remaining shareholders, the Fund may pay redemption proceeds to you in whole or in part with securities held by the Fund. A redemption in-kind could occur under extraordinary circumstances, such as a very large redemption that could affect the Fund's operations (for example, more than 1% of the Fund's net assets). However, the Fund is required to redeem shares solely for cash up to the lesser of $250,000 or 1% of the NAV of the Fund during any 90-calendar day period for any one shareholder. Should redemptions by any shareholder exceed such limitation, the Fund will have the option of redeeming the excess in cash or in-kind. Securities used to redeem Fund shares will be valued as described in "How Fund Shares are Priced" below. A shareholder may pay brokerage charges on the sale of any securities received as a result of a redemption in-kind.

**Redemption Fees** 

If you sell your shares after holding them 30 calendar days or less, a 2.00% short-term redemption fee may be deducted from the redemption amount. For this purpose, shares held longest will be treated as being redeemed first and shares held shortest as being redeemed last. The fees are paid to the respective Fund and are designed to help offset the brokerage commissions, market impact and other costs associated with short-term shareholder trading.

The short-term redemption fee does not apply to: (i) redemptions of shares acquired by reinvesting dividends and distributions; (ii) rollovers, transfers and changes of account registration within the Fund as long as the money never leaves such Fund; and (iii) redemptions in-kind.

The Fund(s) also permits waivers of the short-term redemption fee for the following transactions:

&nbsp;&nbsp;&nbsp;&nbsp;● Redemptions related to death or due to a divorce decree;

&nbsp;&nbsp;&nbsp;&nbsp;● Certain types of IRA account transactions, including: redemptions pursuant to systematic withdrawal programs, required minimum distributions, withdrawals due to disability or death, return of excess contribution amounts and redemptions related to payment of custodian fees; and

&nbsp;&nbsp;&nbsp;&nbsp;● Certain types of employer-sponsored and 403(b) retirement plan transactions, including: loans or hardship withdrawals, minimum required distributions, redemptions pursuant to systematic withdrawal programs, forfeiture of assets, return of excess contribution amounts, redemptions related to payment of plan fees and redemptions related to death, disability or qualified domestic relations order.

The application of short-term redemption fees and waivers may vary among intermediaries and certain intermediaries may not apply the waivers listed above. If you purchase or sell Fund shares through a financial intermediary, you should contact your intermediary for more information on whether the short-term redemption fee will be applied to redemptions of your shares.

The Fund reserves the right to modify or eliminate the short-term redemption fee or waivers at any time. Investment advisers or their affiliates may pay short-term redemption fees on behalf of investors in managed accounts. Unitized group accounts consisting of qualified plan assets may be treated as a single account for redemption fee purposes.

*Note: The Fund has the right to suspend or postpone redemptions of shares for any period (i) during which the NYSE is closed, other than customary weekend and holiday closings; (ii) during which trading on the NYSE is restricted; or (iii) during which (as determined by the SEC by rule or regulation) an emergency exists as a result of which disposal or valuation of portfolio securities is not reasonably practicable, or as otherwise permitted by the SEC.* 

**Share Transactions** 

**Small Account Balances/Mandatory Redemptions** 

The Fund does not currently require shareholders to maintain a minimum account balance. The Fund may adopt other policies from time to time requiring mandatory redemption of shares in certain circumstances, such as to comply with new regulatory requirements.

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| ***www.cloughglobal.com*** | 19 |

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Clough Global Long/Short Fund

**Verification of Shareholder Transaction Statements** 

You must contact the Fund in writing regarding any errors or discrepancies within 60 days after the date of the statement confirming a transaction. The Fund may deny your ability to refute a transaction if it does not hear from you within 60 days after the confirmation statement date.

**Non-receipt of Purchase Wire/Insufficient Funds Policy** 

The Fund reserves the right to cancel a purchase if payment of the check or electronic funds transfer does not clear your bank, or if a wire is not received by settlement date. The Fund may charge a fee for insufficient funds and you may be responsible for any fees imposed by your bank and any losses that the Fund may incur as a result of the canceled purchase.

**Share Certificates** 

The Fund does not issue share certificates.

**Frequent Purchases and Sales of Fund Shares** 

The Fund does not permit market timing or other abusive trading practices. The Fund reserves the right, but does not have the obligation, to reject any purchase transaction at any time. In addition, the Fund reserves the right to suspend its offering of shares or to impose restrictions on purchases or exchanges at any time that are more restrictive than those that are otherwise stated in this Prospectus with respect to disruptive, excessive or short-term trading.

If you sell your shares of the Fund after holding them 30 calendar days or less, a 2.00% short-term redemption fee may be deducted from the redemption amount. The fees are paid to the Fund and are designed to help offset the brokerage commissions, market impact and other costs associated with short-term shareholder trading.

Excessive short-term trading or other abusive trading practices may disrupt portfolio management strategies, increase brokerage and administrative costs and hurt Fund performance. The Board has adopted policies and procedures designed to deter frequent purchases and redemptions and to seek to prevent market timing. To minimize harm to the Fund and its shareholders, the Fund reserves the right to reject, in its sole discretion, any purchase order from any investor it believes has a history of abusive trading or whose trading, in its judgment, has been or may be disruptive to the Fund. The Fund may also refuse purchase transactions from Fund intermediaries it believes may be facilitating or have facilitated abusive trading practices. In making this judgment, the Fund may consider trading done in multiple accounts under common ownership or control.

On a periodic basis, the Transfer Agent will review transaction history reports for activity that may indicate potential market timing activity. Redemptions meeting the criteria will be investigated for possible inappropriate trading.

Certain accounts, in particular omnibus accounts, include multiple investors and such accounts typically provide the Fund with a net purchase or redemption request on any given day. In these cases, purchases, exchanges and redemptions of Fund shares are netted against one another and the identity of individual purchasers and redeemers whose orders are aggregated may not be known by the Fund. Therefore, it becomes more difficult for the Fund to identify market timing or other abusive trading activities in these accounts, and the Fund may be unable to eliminate abusive traders in these accounts from the Fund. Further, identification of abusive traders may also be limited by operational systems and technical limitations. To the extent abusive or disruptive trading is identified, the Fund will encourage omnibus account intermediaries to address such trading activity in a manner consistent with how the Fund would address such activity directly, if it were able to do so.

Due to the complexity and subjectivity involved in identifying market timing and other abusive trading practices, there can be no assurance that the Fund's efforts will identify all market timing or abusive trading activities. Therefore, investors should not assume that the Fund will be able to detect or prevent all practices that may disadvantage the Fund.

**How Fund Shares are Priced** 

The Board has approved procedures to be used to value the Fund's securities for the purposes of determining the Fund's NAV. The valuation of the securities of the Fund is determined in good faith by or under the direction of the Board. A committee comprised of representatives of the Adviser and the Transfer Agent performs certain valuation functions for the Fund pursuant to the Board approved procedures.

The Fund generally values its securities based on market prices determined at the close of regular trading on the NYSE (normally, 4 p.m. Eastern time) on each business day (Monday through Friday). The Fund will not value its securities on any day that the NYSE is closed, including the following observed holidays: New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving Day and Christmas Day. The Fund's currency valuations, if any, are done as of the close of regular trading on the NYSE (normally, 4 p.m. Eastern time). For equity securities that are traded on an exchange, the market price is usually the closing sale or official closing price on that exchange. In the case of securities not traded on an exchange, or if such closing prices are not otherwise available, the market price is typically determined by independent third party pricing vendors approved by the Fund's Board using a variety of pricing techniques and methodologies. The market price for debt obligations is generally the price supplied by an independent third-party pricing service approved by the Fund's Board, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. If vendors are unable to supply a price, or if the price supplied is deemed to be unreliable, the market price may be determined using quotations received from one or more brokers/dealers that make a market in the security.

When such prices or quotations are not available, or when the Adviser believes that they are unreliable, securities may be priced using fair value procedures approved by the Board. Because the Fund invests in securities that may be thinly traded or for

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| 20 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Prospectus \| February 28, 2023*** |

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which market quotations may not be readily available or may be unreliable (such as securities of small capitalization companies), the Fund may use fair valuation procedures more frequently than funds that invest primarily in securities that are more liquid (such as equity securities of large capitalization domestic issuers). The Fund may also use fair value procedures if its Adviser determines that a significant event has occurred between the time at which a market price is determined and the time at which the Fund's net asset value is calculated. In particular, the value of non-U.S. securities may be materially affected by events occurring after the close of the market on which they are traded, but before the Fund prices its shares.

The Fund may determine the fair value of investments based on information provided by pricing services and other third-party vendors, which may recommend fair value prices or adjustments with reference to other securities, indices or assets. In considering whether fair value pricing is required and in determining fair values, the Fund may, among other things, consider significant events (which may be considered to include changes in the value of U.S. securities or securities indices) that occur after the close of the relevant market and before the Fund values its securities. In addition, the Fund may utilize modeling tools provided by third-party vendors to determine fair values of non-U.S. securities. The Fund's use of fair value pricing may help deter "stale price arbitrage."

Valuing securities at fair value involves greater reliance on judgment than valuation of securities based on readily available market quotations. A fund that uses fair value to price securities may value those securities higher or lower than another fund using market quotations or its own fair value methodologies to price the same securities. There can be no assurance that the Fund could obtain the fair value assigned to a security if it were to sell the security at approximately the time at which the Fund determines its net asset value.

The Fund invests, or may invest, in securities that are traded on foreign exchanges or markets, which may be open when the NYSE is closed. As a result, the value of your investment in the Fund may change on days when you are unable to purchase or redeem shares.

**Customer Identification Program** 

To help the government fight the funding of terrorism and money laundering activities, federal law requires the Fund or its delegate to obtain certain personal information from you (or persons acting on your behalf) in order to verify your (or such person's) identity when you open an account, including name, address, date of birth and other information (which may include certain documents). The Fund has delegated this responsibility to the Transfer Agent. If this information is not provided, the Transfer Agent may not be able to open your account. If the Transfer Agent is unable to verify your identity (or that of another person authorized to act on your behalf) shortly after your account is opened, or believes it has identified potentially criminal activity, the Fund, the Distributor and the Transfer Agent each reserve the right to reject further purchase orders from you or to take such other action as they deem reasonable or required by law, including closing your account and redeeming your shares at their NAV at the time of redemption.

**Dividends and Distributions** 

The Fund normally pays dividends on an annual basis. The Fund distributes capital gains, if any, on an annual basis.

Income dividend distributions are derived from dividends and other income the Fund receives from its investments and include distributions of short-term capital gains. Capital gain distributions are derived from gains realized when the Fund sells a security it has owned for more than a year.

The Trust is an open-end registered investment company under the 1940 Act. As such, the Fund is generally limited under the 1940 Act to one distribution in any one taxable year of long-term capital gains realized by the Fund.

The Fund may make additional distributions and dividends at other times if the manager believes doing so may be necessary for the Fund to avoid or reduce taxes. Distributions and dividends are reinvested in additional Fund shares unless you instruct the Transfer Agent to have your distributions and/or dividends paid by check mailed to the address of record or transferred through an Automated Clearing House to the bank of your choice. You can change your choice at any time to be effective as of the next distribution or dividend, except that any change given to the Transfer Agent less than five days before the payment date will not be effective until the next distribution or dividend is made.

**Taxes** 

The discussion below summarizes certain U.S. federal income tax consequences of an investment in the Fund by U.S. persons. It does not address any foreign, state, or local tax consequences. For more information, see the SAI under "TAXES."

**Taxation of Fund Distributions** 

Generally, distributions from the Fund's earnings (other than "qualified dividend income") and net short-term capital gains are taxable to you as ordinary income. Distributions from net long-term capital gains are taxable to you as long-term gains regardless of the length of time you have held your shares. Distributions of earnings from "qualified dividend income" received by the Fund from domestic corporations and qualified foreign corporations will be taxable at the same rate as long-term capital gains, provided certain requirements are met. Distributions are taxable whether you receive them in cash or reinvest them in additional shares. If a dividend or distribution is made shortly after you purchase shares of the Fund, while in effect a return of capital to you, the dividend or distribution is still taxable. You can avoid this by not investing until after the Fund has actually paid the dividend. If the Fund makes a distribution in excess of its current and accumulated "earnings and profits" in any taxable year, the excess distribution will be treated as a return of capital to the extent of your tax basis in your shares, and thereafter as capital gain. A return of capital is not taxable, but it reduces your basis in your shares, thus reducing any loss or increasing any gain on a subsequent taxable disposition of such shares.

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| ***www.cloughglobal.com*** | 21 |

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Clough Global Long/Short Fund

**Sale of Fund Shares** 

When you redeem your shares you may incur a capital gain or loss on the proceeds. The amount of gain or loss is the difference between the amount you paid for your shares (including reinvested dividends and capital gains distributions) and the amount you receive from your redemption.

You should also consult with your tax advisor regarding the U.S. federal, foreign, state and local tax consequences of an investment in the Fund.

**Financial Highlights** 

The financial highlights tables are intended to help you understand the Fund's financial performance for the period since the Fund commenced operations. Certain information reflects financial results for a single Fund share. The total returns in the table represent the rate that an investor would have earned or lost on an investment in the Fund (assuming reinvestment of all dividends and distributions). This information has been audited by Ernst & Young LLP, the Fund's independent registered public accounting firm, whose report, along with the Fund's financial statements and financial highlights are included in the Fund's annual report, which is available upon request by calling the Fund at 855.425.6844.

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| 22 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Prospectus \| February 28, 2023*** |

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**Investor ClaSS** 

*For a share outstanding throughout the period indicated* 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Year <br> Ended <br> October 31, <br> 2022** | **For the Year <br> Ended <br> October 31, <br> 2021** | **For the Year <br> Ended <br> October 31, <br> 2020** | **For the Year <br> Ended <br> October 31, <br> 2019** | **For the Year <br> Ended <br> October 31, <br> 2018<sup>(a)</sup>** |
| **PER SHARE OPERATING PERFORMANCE:** |  |  |  |  |  |
| NET ASSET VALUE, BEGINNING OF PERIOD | $14.80 | $12.20 | $11.24 | $10.60 | $10.96 |
| INCOME/(LOSS) FROM OPERATIONS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss)<sup>(b)</sup> | (0.02) | (0.08) | 0.00 <sup>(c)</sup> | (0.07) | (0.11) |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain/(loss) on investments | (3.68) | 2.74 | 0.96 | 0.71 | (0.25) |
| &nbsp;&nbsp;&nbsp;Total from Investment Operations | (3.70) | 2.66 | 0.96 | 0.64 | (0.36) |
| **DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (0.33) | (0.06) |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gains | (1.64) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total Distributions to Common Shareholders | (1.97) | (0.06) |  |  |  |
| Net asset value - end of period | $9.13 | $14.80 | $12.20 | $11.24 | $10.60 |
| Total Investment Return - Net Asset Value<sup>(d)</sup> | (28.15)% | 21.79% | 8.54% | 6.04% | (3.28)% |
| **RATIOS AND SUPPLEMENTAL DATA:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net assets attributable to common shares, end of period (in 000s) | $417 | $3007 | $2602 | $2407 | $2776 |
| **RATIOS TO AVERAGE NET ASSETS (including interest expense and dividend expense on securities sold short)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses excluding fee waivers/reimbursements | 2.74% | 2.34% | 2.63% | 3.34% | 3.14% |
| &nbsp;&nbsp;&nbsp;Operating expenses including fee waivers/reimbursements | 1.75% | 1.63% | 1.70% | 2.40% | 2.33 %<sup>(e)</sup> |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss) including fee waivers/reimbursements | (0.18)% | (0.55)% | 0.04% | (0.64)% | (0.93)% |
| **RATIOS TO AVERAGE NET ASSETS (excluding interest expense and dividend expense on securities sold short)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses excluding fee waivers/reimbursements | 2.46% | 2.22% | 2.43% | 2.77% | 2.71% |
| &nbsp;&nbsp;&nbsp;Operating expenses including fee waivers/reimbursements | 1.47% | 1.51% | 1.50% | 1.83% | 1.90 %<sup>(e)</sup> |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss) including fee waivers/reimbursements | 0.10% | (0.43)% | 0.24% | (0.07)% | (0.50)% |
| **PORTFOLIO TURNOVER RATE<sup>(f)</sup>** | 244% | 210% | 253% | 269% | 156% |

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*<sup>(a)</sup>* *On December 1, 2017, Class A was renamed Investor Class.* 

*<sup>(b)</sup>* *Per share amounts are based upon average shares outstanding.* 

*<sup>(c)</sup>* *Less than $0.005 per share.* 

*<sup>(d)</sup>* *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.* 

*<sup>(e)</sup>* *According to the Fund's shareholder services plan, any amount of such payment not paid during the Fund's fiscal year for such services activities shall be reimbursed to the Fund as soon as practical after the end of the fiscal year. Fees were reimbursed to the Fund during the year ended October 31, 2018 and the year ended October 31, 2017, in the amounts of 0.05% and 0.06%, respectively of average net assets of the share class.* 

*<sup>(f)</sup>* *Portfolio turnover rate for periods less than one full year have not been annualized and is calculated at the Fund level.* 

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| ***www.cloughglobal.com*** | 23 |

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Clough Global Long/Short Fund

**Class A** 

*For a share outstanding throughout the period indicated* 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Year <br> Ended <br> October 31, <br> 2022** | **For the Year <br> Ended <br> October 31, <br> 2021** | **For the Year <br> Ended <br> October 31, <br> 2020** | **For the Year <br> Ended <br> October 31, <br> 2019** | **For the Period <br> June 29, 2018 <br> (commencement) to <br> October 31, <br> 2018** |
| **PER SHARE OPERATING PERFORMANCE:** |  |  |  |  |  |
| NET ASSET VALUE, BEGINNING OF PERIOD | $14.81 | $12.20 | $11.24 | $10.60 | $11.84 |
| INCOME/(LOSS) FROM OPERATIONS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss)<sup>(a)</sup> | (0.02) | (0.07) | 0.01 | (0.04) | (0.02) |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain/(loss) on investments | (3.74) | 2.74 | 0.95 | 0.68 | (1.22)<sup>(b)</sup> |
| &nbsp;&nbsp;&nbsp;Total from Investment Operations | (3.76) | 2.67 | 0.96 | 0.64 | (1.24) |
| **DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (0.33) | (0.06) |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gains | (1.64) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total Distributions to Common Shareholders | (1.97) | (0.06) |  |  |  |
| Net asset value - end of period | $9.08 | $14.81 | $12.20 | $11.24 | $10.60 |
| Total Investment Return - Net Asset Value<sup>(c)</sup> | (28.59)% | 21.87% | 8.54% | 6.04% | (10.47)% |
| **RATIOS AND SUPPLEMENTAL DATA:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net assets attributable to common shares, end of period (in 000s) | $191 | $291 | $4567 | $2822 | $209 |
| **RATIOS TO AVERAGE NET ASSETS (including interest expense and dividend expense on securities sold short)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses excluding fee waivers/reimbursements | 2.91% | 2.31% | 2.60% | 3.42% | 2.91 %<sup>(d)(e)</sup> |
| &nbsp;&nbsp;&nbsp;Operating expenses including fee waivers/reimbursements | 1.87% | 1.65% | 1.68% | 2.30% | 2.32 %<sup>(d)(e)</sup> |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss) including fee waivers/reimbursements | (0.22)% | (0.50)% | 0.04% | (0.32)% | (0.61)%<sup>(d)(e)</sup> |
| **RATIOS TO AVERAGE NET ASSETS (excluding interest expense and dividend expense on securities sold short)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses excluding fee waivers/reimbursements | 2.64% | 2.18% | 2.42% | 2.97% | 2.44 %<sup>(d)(e)</sup> |
| &nbsp;&nbsp;&nbsp;Operating expenses including fee waivers/reimbursements | 1.60% | 1.52% | 1.50% | 1.85% | 1.85 %<sup>(d)(e)(f)</sup> |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss) including fee waivers/reimbursements | 0.05% | (0.37)% | 0.22% | 0.13% | (0.14)%<sup>(d)(e)</sup> |
| **PORTFOLIO TURNOVER RATE**<sup>(g)</sup> | 244% | 210% | 253% | 269% | 156% |

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*<sup>(a)</sup>* *Per share amounts are based upon average shares outstanding.* 

*<sup>(b)</sup>* *The per share amount varies from the net realized and unrealized gain/loss for the whole period because of the timing of sales of fund shares and per share amount of realized and unrealized gains and losses at such time.* 

*<sup>(c)</sup>* *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.* 

*<sup>(d)</sup>* *Annualized.* 

*<sup>(e)</sup>* *Expense ratios before reductions for startup periods may not be representative of longer term operating periods.* 

*<sup>(f)</sup>* *According to the Fund's shareholder services plan, any amount of such payment not paid during the Fund's fiscal year for such services activities shall be reimbursed to the Fund as soon as practical after the end of the fiscal year. Fees were reimbursed to the Fund during the year ended October 31, 2018 in the amount of 0.10% of average net assets of the share class.* 

*<sup>(g)</sup>* *Portfolio turnover rate for periods less than one full year have not been annualized and is calculated at the Fund level.* 

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| 24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Prospectus \| February 28, 2023*** |

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**Class C** 

*For a share outstanding throughout the period indicated* 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Year <br> Ended <br> October 31, <br> 2022** | **For the Year <br> Ended <br> October 31, <br> 2021** | **For the Year <br> Ended <br> October 31, <br> 2020** | **For the Year <br> Ended <br> October 31, <br> 2019** | **For the Year <br> Ended <br> October 31, <br> 2018** |
| **PER SHARE OPERATING PERFORMANCE:** |  |  |  |  |  |
| NET ASSET VALUE, BEGINNING OF PERIOD | $14.24 | $11.82 | $10.97 | $10.42 | $10.84 |
| INCOME/(LOSS) FROM OPERATIONS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment loss<sup>(a)</sup> | (0.10) | (0.18) | (0.08) | (0.15) | (0.18) |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain/(loss) on investments | (3.55) | 2.64 | 0.93 | 0.70 | (0.24) |
| &nbsp;&nbsp;&nbsp;Total from Investment Operations | (3.65) | 2.46 | 0.85 | 0.55 | (0.42) |
| **DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (0.32) | (0.04) |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gains | (1.64) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total Distributions to Common Shareholders | (1.96) | (0.04) |  |  |  |
| Net asset value - end of period | $8.63 | $14.24 | $11.82 | $10.97 | $10.42 |
| Total Investment Return - Net Asset Value<sup>(b)</sup> | (29.04)% | 20.83% | 7.75% | 5.28% | (3.87)% |
| **RATIOS AND SUPPLEMENTAL DATA:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net assets attributable to common shares, end of period (in 000s) | $317 | $1085 | $1061 | $1813 | $3562 |
| **RATIOS TO AVERAGE NET ASSETS (including interest expense and dividend expense on securities sold short)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses excluding fee waivers/reimbursements | 3.52% | 3.08% | 3.42% | 4.07% | 3.79% |
| &nbsp;&nbsp;&nbsp;Operating expenses including fee waivers/reimbursements | 2.51% | 2.37% | 2.46% | 3.17% | 3.06% |
| &nbsp;&nbsp;&nbsp;Net investment loss including fee waivers/reimbursements | (0.98)% | (1.28)% | (0.74)% | (1.44)% | (1.58)% |
| **RATIOS TO AVERAGE NET ASSETS (excluding interest expense and dividend expense on securities sold short)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses excluding fee waivers/reimbursements | 3.26% | 2.96% | 3.21% | 3.48% | 3.32% |
| &nbsp;&nbsp;&nbsp;Operating expenses including fee waivers/reimbursements | 2.25% | 2.25% | 2.25% | 2.58% | 2.59% |
| &nbsp;&nbsp;&nbsp;Net investment loss including fee waivers/reimbursements | (0.72)% | (1.16)% | (0.53)% | (0.85)% | (1.11)% |
| **PORTFOLIO TURNOVER RATE**<sup>(c)</sup> | 244% | 210% | 253% | 269% | 156% |

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*<sup>(a)</sup>* *Per share amounts are based upon average shares outstanding.* 

*<sup>(b)</sup>* *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.* 

*<sup>(c)</sup>* *Portfolio turnover rate for periods less than one full year have not been annualized and is calculated at the Fund level.* 

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|:---|:---|
| ***www.cloughglobal.com*** | 25 |

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Clough Global Long/Short Fund

**Class I** 

*For a share outstanding throughout the period indicated* 

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **For the Year <br> Ended <br> October 31, <br> 2022** | **For the Year <br> Ended <br> October 31, <br> 2021** | **For the Year <br> Ended <br> October 31, <br> 2020** | **For the Year <br> Ended <br> October 31, <br> 2019** | **For the Year <br> Ended <br> October 31, <br> 2018** |
| **PER SHARE OPERATING PERFORMANCE:** |  |  |  |  |  |
| NET ASSET VALUE, BEGINNING OF PERIOD | $15.05 | $12.38 | $11.38 | $10.70 | $11.03 |
| INCOME/(LOSS) FROM OPERATIONS: |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss)<sup>(a)</sup> | 0.01 | (0.04) | 0.03 | (0.04) | (0.07) |
| &nbsp;&nbsp;&nbsp;Net realized and unrealized gain/(loss) on investments | (3.79) | 2.77 | 0.97 | 0.72 | (0.26) |
| &nbsp;&nbsp;&nbsp;Total from Investment Operations | (3.78) | 2.73 | 1.00 | 0.68 | (0.33) |
| **DISTRIBUTIONS TO COMMON SHAREHOLDERS FROM:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | (0.35) | (0.06) |  |  |  |
| &nbsp;&nbsp;&nbsp;Net realized gains | (1.64) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total Distributions to Common Shareholders | (1.99) | (0.06) |  |  |  |
| Net asset value - end of period | $9.28 | $15.05 | $12.38 | $11.38 | $10.70 |
| Total Investment Return - Net Asset Value<sup>(b)</sup> | (28.30)% | 22.10% | 8.79% | 6.36% | (2.99)% |
| **RATIOS AND SUPPLEMENTAL DATA:** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net assets attributable to common shares, end of period (in 000s) | $35235 | $77267 | $48932 | $44213 | $52684 |
| **RATIOS TO AVERAGE NET ASSETS (including interest expense and dividend expense on securities sold short)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses excluding fee waivers/reimbursements | 2.59% | 2.09% | 2.39% | 3.09% | 2.85% |
| &nbsp;&nbsp;&nbsp;Operating expenses including fee waivers/reimbursements | 1.52% | 1.37% | 1.45% | 2.14% | 2.03% |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss) including fee waivers/reimbursements | 0.10% | (0.30)% | 0.28% | (0.38)% | (0.64)% |
| **RATIOS TO AVERAGE NET ASSETS (excluding interest expense and dividend expense on securities sold short)** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Operating expenses excluding fee waivers/reimbursements | 2.32% | 1.97% | 2.19% | 2.52% | 2.42% |
| &nbsp;&nbsp;&nbsp;Operating expenses including fee waivers/reimbursements | 1.25% | 1.25% | 1.25% | 1.57% | 1.60% |
| &nbsp;&nbsp;&nbsp;Net investment income/(loss) including fee waivers/reimbursements | 0.37% | (0.18)% | 0.48% | 0.19% | (0.21)% |
| **PORTFOLIO TURNOVER RATE**<sup>(c)</sup> | 244% | 210% | 253% | 269% | 156% |

---

*<sup>(a)</sup>* *Per share amounts are based upon average shares outstanding.* 

*<sup>(b)</sup>* *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.* 

*<sup>(c)</sup>* *Portfolio turnover rate for periods less than one full year have not been annualized and is calculated at the Fund level.* 

---

| | |
|:---|:---|
| 26 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***Prospectus \| February 28, 2023*** |

---

**Appendix A – Intermediary Sales Charge Waivers and Discounts** 

**Front-end Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management** 

Effective July 1, 2018, shareholders purchasing Fund shares through a Morgan Stanley Wealth Management transactional brokerage account will be eligible only for the following front-end sales charge waivers with respect to Class A shares, which may differ from and may be more limited than those disclosed elsewhere in this Fund's Prospectus or SAI.

**Front-end Sales Charge Waivers on Class A Shares available at Morgan Stanley Wealth Management** 

&nbsp;&nbsp;&nbsp;&nbsp;● Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans

&nbsp;&nbsp;&nbsp;&nbsp;● Morgan Stanley employee and employee-related accounts according to Morgan Stanley's account linking rules

&nbsp;&nbsp;&nbsp;&nbsp;● Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund

&nbsp;&nbsp;&nbsp;&nbsp;● Shares purchased through a Morgan Stanley self-directed brokerage account

&nbsp;&nbsp;&nbsp;&nbsp;● Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management's share class conversion program

&nbsp;&nbsp;&nbsp;&nbsp;● Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge.

---

| | |
|:---|:---|
| ***www.cloughglobal.com*** | A-1 |

---

*Intentionally Left Blank.*

**February 28, 2023**

Prospectus

Additional Information About The Fund

**Shareholder Reports** 

Annual and semi-annual reports to shareholders provide additional information about the Fund's investments. The Fund's annual reports will discuss the market conditions and investment strategies that significantly affected the Fund's performance during its last fiscal year.

**SAI** 

The SAI provides more detailed information about the Fund. It is incorporated by reference into (is legally a part of) this Prospectus.

**How to Obtain Additional Information** 

The Fund's shareholder reports are available, free of charge, on the Fund's website at www.cloughglobal.com.

You can obtain the SAI (without charge), make inquiries or request other information about the Fund by contacting the Transfer Agent at 855.425.6844, by writing the Fund at 1290 Broadway, Suite 1000, Denver, Colorado 80203, or by calling your financial consultant. This information is also available free of charge on the Fund's website at www.cloughglobal.com.

You can get copies of the Fund's shareholder reports, Prospectus and SAI after paying a fee by electronic request at the following e-mail address: publicinfo@sec.gov. You can get the same reports and information free from the EDGAR Database on the Commission's Internet web site at http://www.sec.gov.

The Fund sends only one document to a household if more than one account has the same address. Contact the Transfer Agent if you do not want this policy to apply to you.

*If someone makes a statement about the Fund that is not in this Prospectus, you should not rely upon that information. Neither the Fund nor the Distributor is offering to sell shares of the Fund to any person to whom the Fund may not lawfully sell its shares.* 

*(Investment Company Act file no. 811-23059)*

 

**CLOUGH FUNDS TRUST**

**February 28, 2023**

**STATEMENT OF ADDITIONAL INFORMATION**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Ticker** | **Ticker** | **Ticker** | **Ticker** |
| | **Investor Class** | **Class A** | **Class C** | **Class I** |
| Clough Global Long/Short Fund | CLOAX | CLOVX | CLOCX | CLOIX |

---

P.O. Box 1920

Denver, Colorado 80201

This Statement of Additional Information ("SAI") expands upon and supplements the information contained in the current Prospectus dated February 28, 2023, as supplemented from time to time (the "Prospectus"), for Investor Class, Class A, Class C and Class I shares of Clough Global Long/Short Fund (the "Fund"), which is a separate series of Clough Funds Trust, a Delaware statutory trust (the "Trust"). The Fund represents shares of beneficial interest in a separate portfolio of securities and other assets with its own objective and policies. Clough Capital Partners L.P. (the "Adviser") is the investment adviser of the Fund.

This SAI is not a prospectus and is only authorized for distribution when preceded or accompanied by the Fund's Prospectus. This SAI supplements and should be read in conjunction with the Prospectus, a copy of which may be obtained without charge by writing the Fund at the address listed above, or by calling the Fund's transfer agent at 855.425.6844. This SAI incorporates by reference the Fund's financial statements for the fiscal year ended October 31, 2022, as well as the related opinion of the Fund's independent registered public accounting firm, as included in the Fund's most recent annual report to shareholders (the "Annual Report"). The Fund's [Annual Report](https://www.sec.gov/Archives/edgar/data/1638872/000139834423000420/fp0081391-1_ncsr.htm) is available free of charge, by writing the Fund at the address listed above or calling the toll-free number printed above.

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | Page |
| Classification, Investment Objectives and Policies | 1 |
| Investment Activities and Risks Applicable to the Fund | 3 |
| Other Practices | 23 |
| Investment Limitations | 26 |
| Portfolio Turnover | 28 |
| Disclosure of Portfolio Holdings | 28 |
| Portfolio Transactions and Brokerage | 31 |
| Purchase & Redemption of Shares | 33 |
| Trustees and Officers | 40 |
| Investment Manager | 48 |
| Distributor | 48 |
| Code of Ethics | 49 |
| Administrator | 49 |
| Proxy Voting Policies and Procedures | 49 |
| Principal Shareholders | 49 |
| Expenses | 50 |
| Portfolio Managers | 50 |
| Net Asset Value | 53 |
| Taxes | 53 |
| Description of the Trust | 61 |
| Other Information about the Fund | 63 |
| Performance Information | 63 |
| Financial Statements | 63 |
| Appendix A -- Description of Securities Ratings | A-1 |
| Appendix B -- Proxy Voting Policies and Procedures | B-1 |

---

**CLASSIFICATION, INVESTMENT OBJECTIVES AND POLICIES**

**Clough Funds Trust**

This SAI includes information about one series of the Trust. The Fund is a series of the Trust, an open-end, management investment company organized as a Delaware statutory trust on March 17, 2015.

The Fund is the successor to an unregistered investment fund that was managed by the Fund's Adviser ("Predecessor Fund") and was reorganized into the Fund on September 30, 2015, the date the Fund commenced investment operations. The Predecessor Fund commenced operations on January 2, 2015 and had an investment objective, investment policies and investment strategies that were, in all material respects, equivalent to those of the Fund, and was managed in a manner that, in all material respects, complied with the investment guidelines and restrictions of the Fund. However, the Predecessor Fund was not subject to the certain investment limitations, diversification requirements, liquidity requirements, and other restrictions imposed on registered investment companies.

**Classification**

The Investment Company Act of 1940, as amended (the "1940 Act"), classifies mutual funds as either diversified or non-diversified. The Fund is classified as diversified.

**What is the Fund's Investment Objective?**

The Fund seeks to provide investors with long-term capital appreciation. While there is no assurance that the Fund will achieve its investment objective, it endeavors to do so by implementing the investment strategies and policies described in the Prospectus and this SAI.

The Fund's Board of Trustees (the "Board") may change the Fund's investment objective or its principal investment strategies without a shareholder vote, upon notice to shareholders. If there is a material change to the Fund's objective or principal investment strategies, you should consider whether the Fund remains an appropriate investment for you.

**What are the Fund's Principal Investment Strategies?**

The Fund seeks to achieve its investment objective primarily by taking long positions and short positions in equity securities in both U.S. and non-U.S. markets. There is no assurance that the Fund will achieve its investment objective.

The Fund invests primarily in a broad selection of global equity securities, including preferred stock. Depending on the Adviser's outlook, the Fund may, at times, be more heavily invested in equity securities in U.S. markets or in equity securities in other markets around the world. Under normal circumstances, the Fund expects to invest in securities of issuers located in at least three countries (in addition to the United States). Unless market conditions are deemed unfavorable, the Fund expects that the market value of the Fund's long and short positions in securities of issuers organized or located outside the United States, issuers doing a substantial amount of business outside the United States (greater than 50% of revenues derived from outside of the United States), and in the case of an exchange-traded fund ("ETF"), where a majority of the securities in which the ETF invests have the foregoing characteristics will represent at least 40% of the Fund's net assets. Investments in non-U.S. markets will be made primarily through securities such as, common shares, depositary receipts (which evidence ownership of underlying foreign securities) such as American Depositary Receipts ("ADRs"), European Depositary Receipts ("EDRs"), and Global Depositary Receipts ("GDRs"), and registered investment companies (including ETFs). The Fund may also use derivatives, such as swaps and participation notes, in order to gain access to foreign markets.

In addition to the Fund's primary investment strategy, the Adviser may employ currency strategies across foreign markets, including developing/emerging markets (countries that are included in the MSCI Emerging Markets Index), using derivatives such as forward foreign currency contracts, futures, and swaps in order to seek to hedge against foreign exchange risk. The Fund does not intend to use leverage in the form of borrowings, and will generally limit its investment holdings to a maximum of 100% of the Fund's net assets.

The Fund will use a variety of investment techniques designed to capitalize on declines in the market prices of equity securities or declines in market indices (e.g., the Fund may establish short positions in specific stocks or stock indices) based on the Adviser's investment outlook, including by taking both long and short positions. Short positions will generally not exceed 50% of the Fund's net assets. The Fund's net equity exposure (measured as the market value of long positions minus the market value of short positions) is expected to range between 50%-100% of the Fund's net assets. A higher net exposure generally reflects the Adviser's belief there are relatively better investment opportunities in securities that it expects to appreciate in value than in securities it expects to decline in value (and may also indicate that the Adviser has a relatively positive view of equity markets), while a lower net exposure generally reflects the reverse, although in each case other factors could also cause the Adviser to choose to increase or decrease the Fund's net exposure.

Should the Adviser believe that extraordinary conditions affecting financial markets warrant, the Fund may temporarily be primarily invested in money market securities or money market mutual funds. When the Fund is invested in these instruments for temporary or defensive purposes, it may be less likely to achieve its investment objective.

The Fund generally seeks to limit volatility in returns to below that of broad global equity indices such as the MSCI All-Country World Index (MSCI ACWI), as measured by the standard deviation (the average deviation of a return series from its mean). The Adviser may employ various hedging strategies for return generation, or to express a specific view on an industry or individual company (including through investments in ETFs) and other techniques (for example, by utilizing short positions and by managing currency hedging exposure, derivative positions, cash balances and U.S. Treasury securities investments) in an effort to limit the Fund's exposure to declines in markets, regions, industries and/or individual securities.

The Fund may invest in issuers of any capitalization and size. Generally, securities will be purchased or sold by the Fund on securities exchanges and in the over-the-counter market (OTC). However, the Fund may hold securities that are illiquid or that are only infrequently traded.

The Adviser may, from time to time, invest the Fund's cash balances in any investments it deems appropriate, including, without limitation and as permitted under the Investment Company Act of 1940, money market funds, repurchase agreements, U.S. Treasury and U.S. agency securities, municipal and corporate bonds and bank accounts.

**Investment Selection**

The Fund seeks to achieve its investment objective by applying a fundamental research-driven investment process. The Adviser believes that attractive investment returns can be achieved when key, proprietary insights into industry or economic trends are discovered, and their significance understood, before they become obvious to other investors. Within this context, the investment process will focus on investing in a number of major global investment themes identified by the Adviser. Industry consolidation, technological change, an emerging shortage of a product or raw material which derives from a period of under-investment, changes in government regulation or major economic or investment cycles are examples of themes the Adviser would emphasize in its investment focus. Attractive investment themes will often be influenced by global trends, which make investments in certain industries across more than one geographic market likely.

Once attractive themes are identified, the Adviser will generally utilize a "bottom-up" research process to identify companies it believes are best positioned to benefit from those specific themes. Individual positions will be selected based upon a host of qualitative and quantitative factors, including, but not limited to, such factors as a company's competitive position, quality of company management, quality and visibility of earnings and cash flow, balance sheet strength and relative valuation. Issuers with strengths in these areas (or in such other areas that the Adviser determines are relevant) may be attractive opportunities for long investments. Conversely, issuers facing profit headwinds, balance sheet weaknesses, competitive pressures or adverse regulatory changes, among other challenges, may present attractive opportunities as short positions when the Adviser believes their value is likely to decline over some period of time. This approach may provide investment opportunities in various levels of a company's capital structure, including common and preferred stock. The Adviser will identify geographic areas (in particular, emerging markets, which the Adviser considers to be countries that are included in the MSCI Emerging Markets Index) in which it intends to invest a portion of Fund assets and how much to invest in that geographic location. In addition to identifying and purchasing individual securities in these markets, the Adviser may purchase ETFs to gain wider exposure to particular markets or regions without incurring the expense of purchasing numerous foreign securities, and thereby indirectly rely on the managers of such ETFs to identify the companies in those regions in which to invest.

Under the Fund's theme-oriented investment approach, investment positions may be concentrated in only a relatively small number of industries. The Fund will seek to allocate its assets within its investment themes, as appropriate, to lower volatility. Individual equity positions on both the long and short side of the portfolio will typically be below 5% of total assets at the time of investment. (Investments in ETFs may exceed 5% of total assets at the time of investment.) The Fund also does not have restrictions on the levels of portfolio turnover, and the Adviser may engage in active and frequent trading of portfolio securities. However, since major industry trends often last years, the Adviser believes that a theme-based investment approach also sometimes leads to lower portfolio turnover.

The Fund's portfolio will be actively managed and securities may be bought or sold on a daily basis. Investments may be added to the portfolio if they satisfy value-based criteria or contribute to the portfolio's risk profile. Investments may be removed from the portfolio if the Adviser believes that their market value exceeds full value, they add inefficient risk or the initial investment thesis fails.

**INVESTMENT ACTIVITIES AND RISKS APPLICABLE TO THE FUND**

The Fund may invest in the following types of securities.

**Equity Investments**

The Fund may invest in equity securities. Equity securities (which generally include common stocks, preferred stocks, warrants, securities convertible into common or preferred stocks and similar securities) are generally volatile and more risky than some other forms of investment. Equity securities of companies with relatively small market capitalizations may be more volatile than the securities of larger, more established companies than the broad equity market indices generally. Common stock and other equity securities may take the form of stock in corporations, partnership interests, interests in limited liability companies and other direct or indirect interests in business organizations.

**Common Stock**

Common stocks are shares of a corporation or other entity that entitle the holder to a pro rata share of the profits of the corporation, if any, without preference over any other shareholder or class of shareholders, including holders of the entity's preferred stock and other senior equity. Common stock usually carries with it the right to vote and frequently an exclusive right to do so.

Common stocks of companies that the Adviser believes have earnings that will grow faster than the economy as a whole are known as growth stocks. Growth stocks typically trade at higher multiples of current earnings than other stocks. As a result, the values of growth stocks may be more sensitive to changes in current or expected earnings than the values of other stocks. If the Adviser's assessment of the prospects for a company's earnings growth is wrong, or if its judgment of how other investors will value the company's earnings growth is wrong, then the price of that company's stock may fall or may not approach the value that the Adviser has placed on it.

Common stocks of companies that are not expected to experience significant earnings growth, but whose stocks the Adviser believes are undervalued compared to their true worth, are known as value stocks. These companies may have experienced adverse business developments or may be subject to special risks that have caused their stocks to be out of favor. If the Adviser's assessment of a company's prospects is wrong, or if other investors do not eventually recognize the value of the company, then the price of the company's stocks may fall or may not approach the value that the Adviser has placed on it.

Many stocks have both "growth" and "value" characteristics, and for some stocks it may be unclear which category, if any, it fits into. The Fund's investment process is biased toward value.

**Preferred Stock**

Preferred stocks, like debt obligations, are generally fixed-income securities. Shareholders of preferred stocks normally have the right to receive dividends at a fixed rate when and as declared by the issuer's board of directors, but do not participate in other amounts available for distribution by the issuing corporation. Dividends on the preferred stock may be cumulative, and generally all cumulative dividends must be paid prior to common shareholders receiving any dividends. Because as a general matter preferred stock dividends must be paid before common stock dividends, preferred stocks generally entail less risk than common stocks. Upon liquidation, preferred stocks are generally entitled to a specified liquidation preference, which is generally the same as the par or stated value, and are senior in right of payment to common stock. Preferred stocks are, however, equity securities in the sense that they do not represent a liability of the issuer and, therefore, do not offer as great a degree of protection of capital or assurance of continued income as investments in corporate debt securities. In addition, preferred stocks are subordinated in right of payment to all debt obligations and creditors of the issuer, and convertible preferred stocks may be subordinated to other preferred stock of the same issuer. A preferred stock is subject to the risk that its value may decrease based on actual or perceived changes in the business or financial condition of the issuer of the stock, as well as market and economic conditions.

**Hedging**

The term "hedging" often is used to describe a transaction or strategy that is intended to mitigate risk of loss in some fashion. The Fund may use a variety of investment techniques, including shorting strategies, use of derivatives, and use of long-dated bonds, designed to capitalize on the declines in the market price of equity securities or declines in market indices (e.g., the Fund may establish short positions in specific stocks or stock indices) based on the Adviser's investment outlook. Hedging transactions on securities generally are used to attempt to hedge against price movements in one or more particular securities positions that the Fund owns or intends to acquire. Hedging transactions on indices generally are used to attempt to hedge against price movements in markets, regions or sectors in which the Fund has invested or expects to invest. The Fund may also employ currency strategies to seek to hedge against foreign exchange risk (see "Currency Strategies" above). While hedging can reduce losses, it can also reduce or eliminate gains or cause losses if the market moves in a manner different from that anticipated by the Fund or if the cost of the hedge outweighs the benefit of the hedge. Hedging transactions may also not perform as expected, in which case any losses on the holdings being hedged may not be reduced or may be increased. There can be no assurance that the Fund's hedging strategies will be effective.

**Investment Companies and Other Similar Instruments**

The Fund may purchase shares of other investment companies, including ETFs and other open-end fund and closed-end funds, as well as other similar instruments. ETFs may be structured as index or actively-managed ETFs. An index ETF is an investment company that is registered under the 1940 Act that holds a portfolio of securities designed to track the performance of a particular index or index segment. Similar instruments, used by pools that are not investment companies, offer similar characteristics and may be designed to track the performance of an index or basket of securities of companies engaged in a particular market or sector. ETFs sell and redeem their shares at net asset value in large blocks (typically 50,000 of its shares) called "creation units." Shares representing fractional interests in these creation units are listed for trading on national securities exchanges and can be purchased and sold in the secondary market in lots of any size at any time during the trading day.

Investments in other investment companies and other similar instruments typically reflect the risks of the types of securities in which the other investment company and other similar instrument invests and may involve certain risks including: (i) that the value of the holdings of the investment company or other instrument may decline, thereby adversely affecting the value of the shares of the investment company or other instrument; (ii) an index ETF may not fully replicate the performance of its benchmark index because of temporary unavailability of certain index securities in the secondary market or discrepancies between the ETF and the index with respect to the weightings of securities or number of stocks held; (iii) an ETF may also be adversely affected by the performance of the specific index, market sector or group of industries on which it is based; and (iv) ETFs and closed-end funds trade on an exchange and, therefore, their shares may trade at a premium or discount to their net asset value per share. The Fund may both purchase and effect short sales of shares of ETFs and may also purchase and sell options on shares of ETFs. These investments may be used for hedging purposes or to seek to increase total return (which is considered a speculative activity).

Because investment companies and pools that issue similar instruments incur various fees and expenses, the Fund's investment in these investment companies and instruments will involve certain indirect costs, as well as transaction costs, such as brokerage commissions. The Adviser will consider expenses associated with an investment in determining whether to invest in an investment company or other instrument. The market prices of ETFs and closed-end funds are expected to fluctuate in accordance with both changes in the asset values of their underlying holdings and supply and demand of an ETF's or closed-end fund's shares on the exchange on which it is listed. In general, most ETFs have a limited operating history and information may be lacking regarding the actual performance and trading liquidity of such shares for extended periods or over complete market cycles. In addition, there is no assurance that the exchange requirements necessary to maintain the listing of the investment companies in which the Fund invests will continue to be met or will remain unchanged. In the event substantial market or other disruptions affecting the shares of the other investment companies held by the Fund should occur in the future, the liquidity and value of that Fund's shares could also be adversely affected. If such disruptions were to occur, that Fund could be required to reconsider the use of other investment companies as part of its investment strategy.

Limitations of the 1940 Act, which prohibit the Fund from acquiring more than 3% of the outstanding shares of another investment company, may restrict the Fund's ability to purchase shares of certain investment companies.

**Short Sales**

The Fund may make short sales of securities. A short sale is a transaction in which the Fund sells a security it does not own in anticipation that the market price of that security will decline.

When the Fund makes a short sale, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities and is often obligated to pay over any accrued interest and dividends on such borrowed securities.

If the price of the security sold short increases between the time of the short sale and the time that the Fund replaces the borrowed security, the Fund will incur a loss; conversely, if the price declines, the Fund will realize a capital gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. The successful use of short selling may be adversely affected by imperfect correlation between movements in the price of the security sold short and the securities being hedged.

To the extent that the Fund engages in short sales, it will provide collateral to the broker-dealer and (except in the case of short sales "against the box") will maintain additional asset coverage in the form of segregated or "earmarked" assets that the Adviser determines to be liquid in accordance with procedures established by the Board and that is equal to the current market value of the securities sold short, or will ensure that such positions are covered by "offsetting" positions, until the Fund replaces the borrowed security. A short sale is "against the box" to the extent that the Fund contemporaneously owns, or has the right to obtain at no added cost, securities identical to those sold short. The Fund may engage in short selling to the extent permitted by the federal securities laws and rules and interpretations thereunder. To the extent the Fund engages in short selling in foreign (non-U.S.) jurisdictions, the Fund will do so to the extent permitted by the laws and regulations of such jurisdiction.

**Non-U.S. Securities**

Investors should recognize that investing in the securities of non-U.S. issuers generally, and particularly in emerging market issuers, involves special considerations which are not typically associated with investing in securities of U.S. issuers. Investments in securities of non-U.S. issuers may involve risks arising from differences between U.S. and non-U.S. securities markets, including less volume, much greater price volatility in and relative illiquidity of non-U.S. securities markets, different trading and settlement practices, and less governmental supervision and regulation, from changes in currency exchange rates, from high and volatile rates of inflation, from economic, social and political conditions and, as with domestic multinational corporations, from fluctuating interest rates.

Since most non-U.S. securities are denominated in non-U.S. currencies or traded primarily in securities markets in which settlements are made in non-U.S. currencies, the value of these investments and the net investment income available for distribution to shareholders of the Fund may be affected favorably or unfavorably by changes in currency exchange rates or exchange control regulations. Because the Fund may purchase securities denominated in non-U.S. currencies, a change in the value of any such currency against the U.S. dollar will result in a change in the U.S. dollar value of the Fund's assets and the Fund's income available for distribution. The Fund's foreign currency transactions may give rise to ordinary income or loss, for U.S. federal income tax purposes, to the extent such income or loss results from fluctuations in the value of the foreign currency.

In addition, although the Fund's income may be received or realized in foreign currencies, the Fund will be required to compute and distribute its income in U.S. dollars. Therefore, if the value of a currency relative to the U.S. dollar declines after the Fund's income has been earned in that currency, translated into U.S. dollars and declared as a dividend, but before payment of such dividend, the Fund could be required to liquidate portfolio securities to pay such dividend. Similarly, if the value of a currency relative to the U.S. dollar declines between the time the Fund incurs expenses or other obligations in U.S. dollars in order to pay such expenses in U.S. dollars will be greater than the equivalent amount in such currency of such expenses at the time they were incurred.

Certain markets are in only the earliest stages of development. There is also a high concentration of market capitalization and trading volume in a small number of issuers representing a limited number of industries, as well as a high concentration of investors and financial intermediaries. Many of such markets also may be affected by developments with respect to more established markets in the region. Brokers in non-U.S. and emerging market countries typically are fewer in number and less capitalized than brokers in the United States. These factors, combined with the U.S. regulatory requirements for open-end investment companies and the restrictions on foreign investment, result in potentially fewer investment opportunities for the Fund and may have an adverse impact on the investment performance of the Fund. There generally is less governmental supervision and regulation of exchanges, brokers and issuers in non-U.S. countries than there is in the United States. For example, there may be no comparable provisions under certain non-U.S. laws to insider trading and similar investor protection securities laws that apply with respect to securities transactions consummated in the United States. Further, brokerage commissions and other transaction costs on non-U.S. securities exchanges generally are higher than in the United States. With respect to investments in certain emerging market countries, less comprehensive legal systems may have an adverse impact on the Fund. For example, while the potential liability of a shareholder in a U.S. corporation with respect to acts of the corporation is generally limited to the amount of the shareholder's investment, the notion of limited liability is less clear in emerging market countries. Similarly, the rights of investors in emerging market companies may be more limited than those of shareholders of U.S. corporations.

Other investment risks include the possible imposition of foreign withholding taxes on certain amounts of the Fund's income which may reduce the net return on non-U.S. investments as compared to income received from a U.S. issuer, the possible seizure or nationalization of foreign assets and the possible establishment of exchange controls, expropriation, confiscatory taxation, other foreign governmental laws or restrictions which might affect adversely payments due on securities held by the Fund, the lack of extensive operating experience of eligible foreign sub-custodians, and legal limitations on the ability of the Fund to recover assets held in custody by a foreign sub-custodian in the event of the sub-custodian's bankruptcy.

In addition, there may be less publicly-available information about a non-U.S. issuer than about a U.S. issuer, and non-U.S. issuers may not be subject to the same accounting, auditing and financial record-keeping standards and requirements as U.S. issuers. In particular, the assets and profits appearing on the financial statements of an emerging market country issuer may not reflect its financial position or results of operations in the way they would be reflected had the financial statements been prepared in accordance with U.S. generally accepted accounting principles. In addition, for an issuer that keeps accounting records in local currency, inflation accounting rules may require, for both tax and accounting purposes, that certain assets and liabilities be restated on the issuer's balance sheet in order to express items in terms of currency of constant purchasing power. Inflation accounting may indirectly generate losses or profits. Consequently, financial data may be materially affected by restatements for inflation and may not accurately reflect the real condition of those issuers and securities markets. Finally, in the event of a default of any such foreign obligations, it may be more difficult for the Fund to obtain or enforce a judgment against the issuers of such obligations. The manner in which foreign investors may invest in companies in certain emerging market countries, as well as limitations on such investments, also may have an adverse impact on the operations of the Fund. For example, the Fund may be required in certain of such countries to invest initially through a local broker or other entity and then have the shares purchased re-registered in the name of the Fund. Re-registration may in some instances not be able to occur on a timely basis, resulting in a delay during which the Fund may be denied certain of its rights as an investor.

Non-U.S. markets have different clearance and settlement procedures, and in certain markets there have been times when settlements have failed to keep pace with the volume of securities transactions, making it difficult to conduct such transactions. Further, satisfactory custodial services for investment securities may not be available in some countries having smaller emerging markets, which may result in the Fund incurring additional costs and delays in transporting and custodying such securities outside such countries. Delays in settlement or other problems could result in periods when assets of the Fund are uninvested and no return is earned thereon. The inability of the Fund to make intended security purchases due to settlement problems or the risk of intermediary counterparty failures could cause the Fund to miss attractive investment opportunities. The inability to dispose of a portfolio security due to settlement problems could result either in losses to the Fund due to subsequent declines in the value of such portfolio security or, if the Fund has entered into a contract to sell the security, could result in possible liability to the purchaser.

**Developing/Emerging Market Countries**

Certain of the risks associated with international investments and investing in smaller capital markets are heightened for investments in developing/emerging market countries. For example, some of the currencies of developing/emerging market countries have experienced devaluations relative to the U.S. dollar, and major adjustments have been made periodically in certain of such currencies. Certain of such countries face serious exchange constraints. In addition, governments of many developing/emerging market countries have exercised and continue to exercise substantial influence over many aspects of the private sector. In certain cases, the government owns or controls many companies, including the largest in the country. Accordingly, government actions in the future could have a significant effect on economic conditions in developing countries which could affect private sector companies and the Fund, as well as the value of securities in the Fund.

Investment in certain developing/emerging market securities is restricted or controlled to varying degrees which may at times limit or preclude investment in certain emerging market securities and increase the costs and expenses of the Fund's portfolio. Certain developing/emerging market countries require governmental approval prior to investments by foreign persons, limit the amount of investment by foreign persons in a particular issuer, limit the investment by foreign persons to only a specific class of securities of an issuer that may have less advantageous rights than other classes, restrict investment opportunities in issuers in industries deemed important to national interests and/or impose additional taxes on foreign investors. Certain developing/emerging market countries may require governmental approval for the repatriation of investment income, capital or the proceeds of sales of securities by foreign investors which could adversely affect the Fund. In addition, if deterioration occurs in a developing/emerging market country's balance of payments, it could impose temporary restrictions on foreign capital remittances. Investing in local markets in developing/emerging market countries may require a portfolio to adopt special procedures, seek local government approvals or take other actions, each of which may involve additional costs to the Fund.

**Warrants and Rights**

The Fund may invest in warrants and rights. Warrants are securities that are usually issued together with a debt security or preferred stock and that give the holder the right to buy a proportionate amount of common stock at a specified price until a stated expiration date. Buying a warrant generally can provide a greater potential for profit or loss than an investment of equivalent amounts in the underlying common stock. The market value of a warrant does not necessarily move with the value of the underlying securities. If a holder does not sell the warrant, it risks the loss of its entire investment if the market price of the underlying security does not, before the expiration date, exceed the exercise price of the warrant. Investing in warrants is a speculative activity. Warrants pay no dividends and confer no rights (other than the right to purchase the underlying securities) with respect to the assets of the issuer. A right is a privilege granted, typically to existing shareholders of a corporation, to subscribe for shares of a new issue of stock before it is issued. Rights normally have a short life, usually two to four weeks, may be freely transferable and generally entitle the holder to buy the new common stock at a lower price than the public offering price.

**Market Risk**

The market price of securities owned by the Fund may go up or down, sometimes rapidly or unpredictably.

Securities may decline in value due to factors affecting securities markets generally or particular industries represented in the securities markets. The value of a security may decline due to general market conditions which are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the general outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. They may also decline due to factors which affect a particular industry or industries, such as labor shortages or increased production costs and competitive conditions within an industry. During a general downturn in the securities markets, multiple asset classes may decline in value simultaneously.

Equity securities generally have greater price volatility than fixed-income securities.

**Derivatives** 

The Fund may engage in a variety of derivative transactions in accordance with the applicable rules of the U.S. Commodity Futures Trading Commission ("CFTC"), and, to the extent applicable, the rules and regulations of certain national or foreign exchanges; however, the Fund will not be obligated to use derivatives and the Fund makes no representation as to the availability of these techniques at this time or at any time in the future. Generally, derivatives are financial contracts whose value depends on, or is derived from, the value of an underlying asset, reference rate or index and may relate to stocks, bonds, interest rates, currencies or currency exchange rates, commodities, related indexes and other assets. The types of derivatives in which the Fund may invest include, but are not limited to, forward foreign currency contracts, futures, options, participation notes, and swap agreements. For additional information on these types of instruments, please see "Commodity-Linked Instruments" in this SAI.

The Fund may use derivatives, among other reasons, as part of the Fund's investment strategy, to attempt to employ its currency strategies, to seek to hedge against foreign exchange risk, and to gain access to foreign markets. The Fund may use any or all types of derivatives which it is authorized to use at any time; no particular strategy will dictate the use of one type of transaction rather than another, as use of any authorized derivative will be a function of numerous variables, including market conditions. The ability of the Fund to utilize derivatives successfully will depend on numerous factors including the Adviser's ability to predict pertinent market movements, which cannot be assured. These skills are different from those needed to select the Fund's portfolio securities.

Subject to the constraints described above, the Fund may (to the extent so authorized) enter into forward foreign currency contracts and interest rate and currency swaps; purchase and sell (or write) exchange-listed and over the counter ("OTC") put and call options on securities, currencies, futures contracts, indices and other financial instruments, and the Fund may enter into interest rate transactions, equity swaps and related transactions and other similar transactions which may be developed to the extent the Adviser determines that they are consistent with the Fund's investment objective and policies and applicable regulatory requirements. The Fund's interest rate transactions may take the form of swaps, caps, floors and collars, and the Fund's currency transactions may take the form of forward foreign currency contracts, currency futures contracts, currency swaps and options on currencies or currency futures contracts.

Derivatives involve special risks, including possible default by the other party to the transaction, illiquidity and, to the extent the Adviser's view as to certain market movements is incorrect, the risk that the use of derivatives could result in significantly greater losses than if it had not been used. Losses resulting from the use of derivatives will reduce the Fund's net asset value, and possibly income, and the losses may be significantly greater than if derivatives had not been used. The degree of the Fund's use of derivatives may be limited by certain provisions of the Internal Revenue Code of 1986, as amended (the "Code"). When used, derivatives may increase the amount and affect the timing and character of taxes payable by shareholders. See "Taxes."

Certain standardized swap transactions are currently subject to mandatory central clearing or may be eligible for voluntary central clearing. Central clearing is expected to decrease counterparty risk and increase liquidity compared to uncleared swaps because central clearing interposes the central clearinghouse as the counterpart to each participant's swap. However, central clearing does not eliminate counterparty risk or illiquidity risk entirely. In addition depending on the size of the Fund and other factors, the margin required under the rules of a clearinghouse and by a clearing member may be in excess of the collateral required to be posted by the Fund to support its obligations under a similar uncleared swap.

Futures, options on futures, and swap contracts that are listed or traded on a national securities exchange, commodities exchange, contract market or over-the-counter markets and that are freely transferable will be valued at their closing settlement price on the exchange on which they are primarily traded or based upon the current settlement price for a like instrument acquired on the day on which the instrument is being valued. A settlement price may not be used if the market makes a limit move with respect to a particular commodity. OTC futures, options on futures, and swap contracts for which market quotations are readily available will be valued based on quotes received from third party pricing services or one or more dealers that make markets in such securities. If quotes are not available from a third party pricing service or one or more dealers, quotes shall be determined based on the fair value of such instruments. In determining the fair value of such instruments the Fund may consider, among other factors, whether or not the particular instrument is intended to be cash-settled or physically-settled. With respect to instruments that do not cash settle, the Fund may typically use the full notional value of the contract as a guide while the positions are open. With respect to instruments that do cash settle, the Fund may typically use the marked-to-market net obligation under the applicable contract as a guide.

Rule 4.5 under the Commodity Exchange Act of 1936, as amended ("CEA"), exempts an adviser of a fund that invests in "commodity interests" from registration as a "commodity pool operator" ("CPO") provided that, among other restrictions, the adviser enters into such positions solely for "bona fide hedging purposes" or limits its use of commodity interests for non-bona fide hedging purposes such that (i) the aggregate initial margin and premiums required to establish non-bona fide hedging positions do not exceed 5% of the liquidation value of the fund's portfolio, or (ii) the aggregate "notional value" of the non-bona fide hedging commodity interests do not exceed 100% of the liquidation value of the fund's portfolio.

The Adviser intends to comply with the requirements of the CEA by operating the Fund in a manner consistent with the restrictions of Rule 4.5, including filing a notice of eligibility of exemption from registration in accordance with applicable procedures, or alternatively operating the Fund in a manner such that the Fund's activities are not subject to the CEA.

On August 19, 2022, new Rule 18f-4 related to the use of derivatives, short sales, reverse repurchase agreements and certain other transactions by registered investment companies (the "Rule") went into effect. Subject to certain exceptions, the Rule requires the Fund to trade derivatives and certain other transactions that create future payment or delivery obligations subject to a value-at-risk (VaR) leverage limit and to certain derivatives risk management program, reporting and board oversight requirements. Generally, these requirements apply to any fund engaging in derivatives transactions unless a fund satisfies a "limited derivatives users" exception, which requires the Fund to limit its gross notional derivatives exposure (with certain exceptions) to 10% of its net assets and to adopt derivatives risk management procedures. Under the rule, when the Fund trades reverse repurchase agreements or similar financing transactions, it needs to aggregate the amount of indebtedness associated with the reverse repurchase agreements or similar financing transactions with the aggregate amount of any other senior securities representing indebtedness (e.g., borrowings, if applicable) when calculating the Fund's asset coverage ratio or treat all such transactions as derivatives transactions. The SEC also provided guidance in connection with the Rule regarding the use of securities lending collateral that may limit securities lending activities. These requirements may limit the ability of the Fund to use derivatives, short sales, reverse repurchase agreements and similar financing transactions, and the other relevant transactions as part of its investment strategies. These requirements also may increase the cost of the Fund's investments and cost of doing business, which could adversely affect investors.

**Currency Transactions**

The Fund may engage in currency transactions with counterparties in an effort to hedge the value of portfolio securities denominated in particular currencies against fluctuations in relative value or to gain or reduce exposure to certain currencies.

Currency transactions include forward foreign currency contracts, exchange-listed currency futures contracts and options thereon, exchange-listed and OTC options on currencies and currency swaps. A forward currency contract involves a privately negotiated obligation to purchase or sell (with delivery generally required) a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. A currency swap is an agreement to exchange cash flows based on the notional difference among two or more currencies and operates similarly to an interest rate swap, which is described below under "Interest Rate and Equity Swaps and Related Transactions."

The Fund may enter into a forward contract to sell, for a fixed amount of U.S. dollars, the amount of that currency approximating the value of some or all of the Fund's portfolio securities denominated in such currency. For example, the Fund may do this if the Adviser believes that the currency of a particular country may decline in relation to the U.S. dollar. Forward contracts may limit potential gain from a positive change in the relationship between the U.S. dollar and foreign currencies. Transaction hedging includes entering into a currency transaction with respect to specific assets or liabilities of the Fund, which will generally arise in connection with the purchase or sale of portfolio securities or the receipt of income from them. Position hedging is entering into a currency transaction with respect to portfolio securities positions denominated or generally quoted in that currency.

The Fund may cross-hedge currencies by entering into transactions to purchase or sell one or more currencies that are expected to increase or decline in value relative to other currencies to which the Fund has or in which the Fund expects to have exposure. To reduce the effect of currency fluctuations on the value of existing or anticipated holdings of its securities, the Fund may also engage in proxy hedging. Proxy hedging is often used when the currency to which the Fund's holdings is exposed is difficult to hedge generally or difficult to hedge against the dollar. Proxy hedging entails entering into a forward contract to sell a currency, the changes in the value of which are generally considered to be linked to a currency or currencies in which some or all of the Fund's securities are or are expected to be denominated and to buy dollars.

Currency hedging involves some of the same risks and considerations as other derivative transactions. Currency transactions can result in losses to the Fund if the currency being hedged fluctuates in value to a degree or in a direction that is not anticipated. Further, the risk exists that the perceived linkage between various currencies may not be present or may not be present during the particular time that the Fund is engaging in these transactions. Currency transactions are also subject to risks different from those of other portfolio transactions. Because currency control is of great importance to the issuing governments and influences economic planning and policy, purchases and sales of currency and related instruments can be adversely affected by government exchange controls, limitations or restrictions on repatriation of currency and manipulations or exchange restrictions imposed by governments. These forms of governmental actions can result in losses to the Fund if it is unable to deliver or receive currency or monies in settlement of obligations and could also cause hedges it has entered into to be rendered useless, resulting in full currency exposure as well as incurring transaction costs. Buyers and sellers of currency futures contracts are subject to the same risks that apply to the use of futures contracts generally. Further, settlement of a currency futures contract for the purchase of most currencies must occur at a bank based in the issuing nation. Trading options on currency futures contracts is relatively new, and the ability to establish and close out positions on these options is subject to the maintenance of a liquid market that may not always be available. Currency exchange rates may fluctuate based on factors extrinsic to that country's economy.

**Futures Contracts**

Generally, a futures contract provides for the future sale by one party and purchase by another party of a specified quantity of a financial instrument, foreign currency or the cash value of an index at a specified price and time. Certain of the Fund may enter into futures contracts and related options as permitted under CFTC rules. The Adviser expects that the Fund's futures transactions will generally include transactions: (i) on domestic and foreign exchanges on currencies and interest rates; and (ii) on domestic and, to the extent permitted by the CFTC, foreign exchanges on stock indices. For additional information on these types of instruments, please see "Commodity-Linked Instruments" in this SAI.

Futures contracts are generally bought and sold on the commodities exchanges on which they are listed with payment of initial and variation margin as described below. The sale of a futures contract creates a firm obligation by the Fund, as seller, to deliver to the buyer the specific type of financial instrument called for in the contract at a specific future time for a specified price (or, with respect to certain instruments, the net cash amount). The Fund expects to use futures contracts and related options for hedging purposes. The Fund's use of financial futures contracts and options thereon will in all cases be consistent with applicable regulatory requirements and in particular the rules and regulations of the CFTC. Maintaining a futures contract or selling an option on a futures contract will typically require the Fund to deposit with a financial intermediary, as security for its obligations, an amount of cash or other specified assets ("initial margin") that initially is from 1% to 10% of the face amount of the contract (but may be higher in some circumstances). Additional cash or assets ("variation margin") may be required to be deposited thereafter daily as the mark-to-market value of the futures contract fluctuates. The value of all futures contracts sold by the Fund (adjusted for the historical volatility relationship between the Fund and the contracts) will not exceed the total market value of the Fund's securities.

**Options**

A put option gives the purchaser of the option, upon payment of a premium, the right to sell, and the writer of the option the obligation to buy (if the option is exercised), the underlying security, index, currency or other instrument at the exercise price. The Fund's purchase of a put option on a security, for example, might be designed to protect its holdings in the underlying instrument (or, in some cases, a similar instrument) against a substantial decline in the market value of such instrument by giving the Fund the right to sell the instrument at the option exercise price. A call option, upon payment of a premium, gives the purchaser of the option the right to buy (if the option is exercised), and the seller the obligation to sell, the underlying instrument at the exercise price. The Fund's purchase of a call option on a security, financial futures contract, index, currency or other instrument might be intended to protect the Fund against an increase in the price of the underlying instrument that it intends to purchase in the future by fixing the price at which it may purchase the instrument. An "American" style put or call option may be exercised at any time during the option period, whereas a "European" style put or call option may be exercised only upon expiration or during a fixed period prior to expiration. Exchange-listed options are issued by a regulated intermediary such as the Options Clearing Corporation ("OCC"), which guarantees the performance of the obligations of the parties to the options.

The Fund may purchase put and call options or write "covered" put and call options on futures contracts on stocks, stock indices, interest rates and currencies. A call option written by the Fund is "covered" so long as the Fund owns: (i) the underlying investment subject to the option; (ii) securities convertible or exchangeable without the payment of any consideration into the securities subject to the option; or (iii) a call option on the relevant security or currency with an exercise price no higher than the exercise price on the call option written. A put option written by the Fund is "covered" if the Fund either (a) designates on its or its custodian records liquid securities having a value at least equal to the exercise price of the underlying investment or (b) has certain offsetting puts. Parties to options transactions must make certain payments and/or set aside certain amounts of assets in connection with each transaction.

By writing a call, the Fund will generally limit its opportunity to profit from an increase in the market value of the underlying investment above the exercise price of the option for as long as the Fund's obligation as writer of the option continues. By writing a put, the Fund will generally limit its opportunity to profit from a decrease in the market value of the underlying investment below the exercise price of the option for as long as the Fund's obligation as writer of the option continues. Upon the exercise of a put option written by the Fund, the Fund may suffer an economic loss equal to the difference between the price at which the Fund is required to purchase the underlying investment and its market value at the time of the option exercise, less the premium received for writing the option. Upon the exercise of a call option written by the Fund, the Fund may suffer an economic loss equal to an amount not less than the Fund's acquisition cost of the investment underlying the option, less the sum of the premium received for writing the option and the exercise price paid to the Fund.

The Fund may choose to exercise the options it holds, permit them to expire or terminate them prior to their expiration by entering into closing transactions. The Fund may enter into a closing purchase transaction in which the Fund purchases an option having the same terms as the option it had written or a closing sale transaction in which the Fund sells an option having the same terms as the option it had purchased.

Exchange-listed options on securities and currencies, with certain exceptions, generally settle by physical delivery of the underlying security or currency, although in the future, cash settlement may become available. Frequently, rather than taking or making delivery of the underlying instrument through the process of exercising the option, listed options are closed by entering into offsetting purchase or sale transactions that do not result in ownership of the new option. Index options are cash settled for the net amount, if any, by which the option is "in-the-money" (that is, the amount by which the value of the underlying instrument exceeds, in the case of a call option, or is less than, in the case of a put option, the exercise price of the option) at the time the option is exercised.

OTC options are purchased from or sold to securities dealers, financial institutions or other parties (collectively referred to as "counterparties" and individually referred to as a "counterparty") through a direct bilateral agreement with the counterparty. In contrast to exchange-listed options, which generally have standardized terms and performance mechanics, the terms of an OTC option, including such terms as method of settlement, term, exercise price, premium, guaranties and security, are determined by negotiation of the parties.

Unless the parties provide for it, no central clearing or guaranty function is involved in an OTC option. As a result, if a counterparty fails to make or take delivery of the security, currency or other instrument underlying an OTC option it has entered into with the Fund or fails to make a cash settlement payment due in accordance with the terms of that option, the Fund will lose any premium it paid for the option as well as any anticipated benefit of the transaction. Thus, the Adviser must assess the creditworthiness of each such counterparty or any guarantor or credit enhancement of the counterparty's credit to determine the likelihood that the terms of the OTC option will be met.

If the Fund sells a call option, the premium that it receives may serve as a partial hedge, to the extent of the option premium, against a decrease in the value of the underlying securities or instruments held by the Fund or will increase the Fund's income. Similarly, the sale of put options can also provide gains for the Fund. The Fund may purchase and sell call options on securities that are traded on U.S. and foreign securities exchanges and in the OTC markets, and on securities indices, currencies and futures contracts. All calls sold by the Fund must be "covered" (that is, the Fund must own the securities or futures contract subject to the call) for so long as the call is outstanding. Even though the Fund will receive the option premium to help protect it against loss, use of options could result in losses to the Fund, force the purchase or sale of portfolio securities at inopportune times or for prices higher or lower than current market values, or cause the Fund to hold a security it might otherwise sell or sell a security it might otherwise hold.

The Fund's ability to close out its position as a purchaser or seller of an OCC-issued or exchange-listed put or call option is dependent, in part, upon the liquidity of the particular option market. Among the possible reasons for the absence of a liquid option market on an exchange are: (i) insufficient trading interest in certain options; (ii) restrictions on transactions imposed by an exchange; (iii) trading halts, suspensions or other restrictions imposed with respect to particular classes or series of options or underlying securities, including reaching daily price limits; (iv) interruption of the normal operations of the OCC or an exchange; (v) inadequacy of the facilities of an exchange or the OCC to handle current trading volume; or (vi) a decision by one or more exchanges to discontinue the trading of options (or a particular class or series of options), in which event the relevant market for that option on that exchange would cease to exist, although any such outstanding options on that exchange would continue to be exercisable in accordance with their terms.

The hours of trading for listed options may not coincide with the hours during which the underlying financial instruments are traded. To the extent that the option markets close before the markets for the underlying financial instruments, significant price and rate movements can take place in the underlying markets that would not be reflected in the corresponding option markets.

The Fund reserves the right to purchase or sell options on instruments and indices other than those described here and which may be developed in the future to the extent consistent with applicable law, the Fund's investment objective and the restrictions set forth herein.

**Participation Notes** 

The Fund may invest a portion of its assets in participation notes. Participation notes generally are issued by banks or broker-dealers and are promissory notes that are designed to offer a return linked to the performance of a particular underlying equity security or market. The return on a participation note that is linked to a particular underlying security generally is increased to the extent of any dividends paid in connection with the underlying security. However, the holder of a participation note typically does not receive voting rights as it would if it directly owned the underlying security. Participation notes constitute direct, general and unsecured contractual obligations of the banks or broker-dealers that issue them, which therefore subjects the Fund to counterparty risk. Investments in participation notes involve certain risks in addition to those associated with a direct investment in the underlying foreign companies or foreign securities markets whose return they seek to replicate. For instance, there can be no assurance that there will be a trading market for a participation note or that the trading price of a participation note will equal the underlying value of the foreign company or foreign securities market that it seeks to replicate. As the purchaser of a participation note, the Fund is relying on the creditworthiness of the counterparty issuing the participation note and has no rights under a participation note against the issuer of the underlying security. Therefore, if such counterparty were to become insolvent, the Fund would lose its investment. Due to liquidity and transfer restrictions, the secondary markets on which participation notes are traded may be less liquid than the markets for other securities, or may be completely illiquid, which may lead to the absence of readily available market quotations for securities held by the Fund.

**Equity Swaps and Related Transactions** 

The Fund may enter into equity swaps and may purchase or sell (i.e., write) equity caps, floors and collars. The Fund expects to enter into these transactions in order to seek to hedge against foreign exchange risk or to gain access to foreign markets. Equity swaps involve the exchange by the Fund with another party of their respective commitments to make or receive payments based on a notional principal amount. The purchase of an equity cap entitles the purchaser, to the extent that a specified index exceeds a predetermined level, to receive payments on a contractually-based principal amount from the party selling the equity cap. The purchase of an equity floor entitles the purchaser, to the extent that a specified index falls below a predetermined rate, to receive payments on a contractually-based principal amount from the party selling the equity floor. A collar is a combination of a cap and a floor which preserve a certain return within a predetermined range of values.

The Fund will usually enter into equity swaps on a net basis (i.e., the two payment streams are netted out), with the Fund receiving or paying, as the case may be, only the net amount of the two payments. The net amount of the excess, if any, of the Fund's obligations over its entitlements with respect to each equity swap will generally be accrued on a daily basis, and an amount of liquid assets having an aggregate net asset value at least equal to the accrued excess will be designated to cover such liability. If the Fund enters into an equity swap on other than a net basis, the Fund will designate the full amount accrued on a daily basis of the Fund's obligations with respect to the swap.

The use of equity swaps is a highly specialized activity which involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. If the Adviser is incorrect in its forecasts of market values, interest rates and other applicable factors, the investment performance of the Fund would diminish compared with what it would have been if these investment techniques were not utilized. Moreover, even if the Adviser is correct in its forecasts, there is a risk that the swap position may correlate imperfectly with the price of the asset or liability being hedged.

As is the case with futures and options strategies, the effective use of swaps and related transactions by the Fund may depend, among other things, on the Fund's ability to terminate the transactions at times when the Adviser deems it desirable to do so. To the extent the Fund does not, or cannot, terminate such a transaction in a timely manner, the Fund may suffer a loss in excess of any amounts that it may have received, or expected to receive, as a result of entering into the transaction.

The liquidity of swap agreements will be determined by the Adviser based on various factors, including (i) the frequency of trades and quotations, (ii) the number of dealers and prospective purchasers in the marketplace, (iii) dealer undertakings to make a market, (iv) the nature of the security (including any demand or tender features), and (v) the nature of the marketplace for trades (including the ability to assign or offset the Fund's rights and obligations relating to the investment).

There is no limit on the amount of equity swap transactions that may be entered into by the Fund. The effective use of swaps and related transactions by the Fund may depend, among other things, on the Fund's ability to terminate the transactions at times when the Adviser deems it desirable to do so. Because swaps and related transactions are bilateral contractual arrangements between the Fund and counterparties to the transactions, the Fund's ability to terminate such an arrangement may be considerably more limited than in the case of an exchange traded instrument. To the extent the Fund does not, or cannot, terminate such a transaction in a timely manner, the Fund may suffer a loss in excess of any amounts that it may have received, or expected to receive, as a result of entering into the transaction. If the other party to a swap defaults, the Fund's risk of loss is the net amount of payments that the Fund contractually is entitled to receive, if any. The Fund may purchase and sell caps, floors and collars without limitation.

**Risks of Derivatives Outside the United States** 

When conducted outside the United States, derivatives may not be regulated as rigorously as in the United States, may not involve a clearing mechanism and related guarantees, and will be subject to the risk of governmental actions affecting trading in, or the prices of, foreign securities, currencies and other instruments. In addition, the price of any foreign futures or foreign options contract and, therefore, the potential profit and loss thereon, may be affected by any variance in the foreign exchange rate between the time an order is placed and the time it is liquidated, offset or exercised. The value of positions taken as part of non-U.S. derivatives also could be adversely affected by: (i) other complex foreign political, legal and economic factors; (ii) lesser availability of data on which to make trading decisions than in the United States; (iii) delays in the Fund's ability to act upon economic events occurring in foreign markets during nonbusiness hours in the United States; (iv) the imposition of different exercise and settlement terms and procedures and margin requirements than in the United States; and (v) lower trading volume and liquidity.

**Securities Related Activities** 

In some countries, banks or other financial institutions may constitute a substantial number of the leading companies or companies with the most actively traded securities. The 1940 Act limits the Fund's ability to invest in any equity security of an issuer which, in its most recent fiscal year, derived more than 15% of its revenues from "securities related activities," as defined by the rules thereunder. These provisions may also restrict the Fund's investments in certain non-U.S. banks and other financial institutions.

**Non-U.S. Sub-custodians** 

Rules adopted under the 1940 Act permit the Fund to maintain its non-U.S. securities and cash in the custody of certain eligible non-U.S. banks and securities depositories.

Certain banks in non-U.S. countries may not be eligible sub-custodians for the Fund, in which event the Fund may be precluded from purchasing securities in certain non-U.S. countries in which it otherwise would invest or which may result in the Fund's incurring additional costs and delays in providing transportation and custody services for such securities outside of such countries. The Fund may encounter difficulties in effecting on a timely basis portfolio transactions with respect to any securities of issuers held outside their countries. Other banks that are eligible non-U.S. sub-custodians may be recently organized or otherwise lack extensive operating experience. In addition, in certain countries there may be legal restrictions or limitations on the ability of the Fund to recover assets held in custody by non-U.S. sub-custodians in the event of the bankruptcy of the sub-custodian.

**Fixed Income Securities** 

The Fund may invest in fixed income securities for purposes of investing its cash balances and taking a temporary defensive position. Fixed income securities generally pay a specified rate of interest or dividends, or a rate that is adjusted periodically by reference to some specified index or market rate or other factor. Fixed income securities may include securities issued by U.S. federal, state, local, and non-U.S. governments and other agencies and instrumentalities, and by a wide range of private or corporate issuers. Fixed income securities include, among others, bonds, notes, bills, debentures, convertible securities, bank obligations, mortgage and other asset-backed securities, loan participations and assignments and commercial paper.

Because interest rates vary, it is impossible to predict the income of the Fund for any particular period. Except to the extent that values are affected independently by other factors such as developments relating to a specific issuer or group of issuers, when interest rates decline, the value of a fixed-income portfolio can generally be expected to rise. Conversely, when interest rates rise, the value of a fixed-income portfolio can generally be expected to decline. Prices of longer term securities generally increase or decrease more sharply than those of shorter term securities in response to interest rate changes, particularly if such securities were purchased at a discount. It should be noted that the market values of securities rated below investment grade and comparable unrated securities tend to react less to fluctuations in interest rate levels than do those of higher-rated securities.

*Certificates of Deposit and Bankers' Acceptances* 

The Fund may invest in certificates of deposit and bankers' acceptances, which are considered to be short-term money market instruments.

Certificates of deposit are receipts issued by a depository institution in exchange for the deposit of funds. The issuer agrees to pay the amount deposited plus interest to the bearer of the receipt on the date specified on the certificate. The certificate usually can be traded in the secondary market prior to maturity. Bankers' acceptances typically arise from short-term credit arrangements designed to enable businesses to obtain funds to finance commercial transactions. Generally, an acceptance is a time draft drawn on a bank by an exporter or an importer to obtain a stated amount of funds to pay for specific merchandise. The draft is then "accepted" by a bank that, in effect, unconditionally guarantees to pay the face value of the instrument on its maturity date. The acceptance may then be held by the accepting bank as an earning asset or it may be sold in the secondary market at the going rate of discount for a specific maturity. Although maturities for acceptances can be as long as 270 days, most acceptances have maturities of six months or less.

*Commercial Paper* 

The Fund may purchase commercial paper. Commercial paper consists of short-term (usually from 1 to 270 days) unsecured promissory notes issued by corporations in order to finance their current operations. It may secured by letters of credit, a surety bond or other forms of collateral. Commercial paper is usually repaid at maturity by the issuer from the proceeds of the issuance of new commercial paper. As a result, investment in commercial paper is subject to the risk the issuer cannot issue enough new commercial paper to satisfy its outstanding commercial paper, also known as rollover risk. Commercial paper may become illiquid or may suffer from reduced liquidity in certain circumstances. Like all fixed income securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial paper prices will decline. The short-term nature of a commercial paper investment makes it less susceptible to interest rate risk than many other fixed income securities because interest rate risk typically increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate debt because securities with shorter maturities typically have lower effective yields than those with longer maturities. As with all fixed income securities, there is a chance that the issuer will default on its commercial paper obligation.

*Time Deposits and Variable Rate Notes* 

The Fund may invest in fixed time deposits, whether or not subject to withdrawal penalties. The commercial paper obligations, which the Fund may buy are unsecured and may include variable rate notes. The nature and terms of a variable rate note (i.e., a "Master Note") permit the Fund to invest fluctuating amounts at varying rates of interest pursuant to a direct arrangement between the Fund as Lender, and the issuer, as borrower. It permits daily changes in the amounts borrowed. The Fund has the right at any time to increase, up to the full amount stated in the note agreement, or to decrease the amount outstanding under the note. The issuer may prepay at any time and without penalty any part of or the full amount of the note. The note may or may not be backed by one or more bank letters of credit. Because these notes are direct lending arrangements between the Fund and the issuer, it is not generally contemplated that they will be traded; moreover, there is currently no secondary market for them. Except as specifically provided in the Prospectus, there is no limitation on the type of issuer from whom these notes may be purchased; however, in connection with such purchase and on an ongoing basis, the Adviser will consider the earning power, cash flow and other liquidity ratios of the issuer, and its ability to pay principal and interest on demand, including a situation in which all holders of such notes made demand simultaneously. Variable rate notes are subject to the Fund's investment restriction on illiquid securities unless such notes can be put back to the issuer on demand within seven days.

*Insured Bank Obligations* 

The Fund may invest in insured bank obligations. The Federal Deposit Insurance Corporation ("FDIC") insures the deposits of federally insured banks and savings and loan associations (collectively referred to as "banks") up to $250,000. The Fund may purchase bank obligations that are fully insured as to principal by the FDIC. Currently, to remain fully insured as to principal, these investments must be limited to $250,000 per bank; if the principal amount and accrued interest together exceed $250,000, the excess principal and accrued interest will not be insured. Insured bank obligations may have limited marketability.

**Call or Buy-Back Features** 

In addition, many fixed-income securities contain call or buy-back features that permit their issuers to call or repurchase the securities from their holders. Such securities may present risks based on payment expectations. Although the Fund may typically receive a premium if an issuer were to redeem a security, if an issuer exercises such a "call option" and redeems the security during a time of declining interest rates, the Fund may realize a capital loss on its investment if the security was purchased at a premium and the Fund may have to replace the called security with a lower yielding security, resulting in a decreased rate of return to the Fund.

**Bank Obligations**

Bank obligations that may be purchased by the Fund include certificates of deposit, banker's acceptances and fixed time deposits. A certificate of deposit is a short-term negotiable certificate issued by a commercial bank against funds deposited in the bank and is either interest-bearing or purchased on a discount basis. A banker's acceptance is a short-term draft drawn on a commercial bank by a borrower, usually in connection with an international commercial transaction. The borrower is liable for payment, as is the bank, which unconditionally guarantees to pay the draft at its face amount on the maturity date. Fixed time deposits are obligations of branches of U.S. or non-U.S. banks which are payable at a stated maturity date and bear a fixed rate of interest. Although fixed time deposits do not have a market, there are no contractual restrictions on the right to transfer a beneficial interest in the deposit to a third party. Bank obligations may be general obligations of the parent bank or may be limited to the issuing branch by the terms of the specific obligations or by government regulation. Securities issued or guaranteed by non-U.S. banks and non-U.S. branches of U.S. banks are subject to many of the risks of investing in non-U.S. securities generally.

Banks are subject to extensive governmental regulations which may limit both the amounts and types of loans and other financial commitments which may be made and interest rates and fees which may be charged. The profitability of this industry is to a significant extent dependent upon the availability and cost of capital of funds used by the bank to finance its lending operations. Also, general economic conditions play an important part in the operations of this industry and exposure to credit losses arising from possible financial difficulties of borrowers might affect a bank's ability to meet its obligations.

**Convertible Securities**

The Fund may invest in convertible securities, which are bonds, debentures, notes, preferred stock or other securities, which may be converted into or exchanged for a prescribed amount of common stock of the same or different issuer within a particular period of time at a specified price or formula. A convertible security entitles the holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible security matures or is redeemed, converted or exchanged. Before conversion, convertible securities ordinarily provide a stream of income, which generate higher yields than those of common stocks of the same or similar issuers but lower than the yield on non-convertible debt. Convertible securities are usually subordinate or are comparable to non-convertible securities but rank senior to common stock or shares in a company's capital structure. The value of a convertible security is a function of (i) its yield in comparison with the yields of other securities of comparable maturity and quality that do not have a conversion privilege and (ii) its worth, at market value, if converted into the underlying common stock. Convertible securities are typically issued by smaller capitalized companies whose stock prices may be volatile. The price of a convertible security often reflects such variations in the price of the underlying common stock in a way that non-convertible debt does not. A convertible security may be subject to redemption at the option of the issuer at a price established in the convertible security's governing instrument.

**Floating and Variable Rate Instruments** 

The Fund may each invest in floating and variable rate obligations. Floating or variable rate obligations bear interest at rates that are not fixed, but vary with changes in specified market rates or indices, such as the prime rate, and at specified intervals. The variable rate obligations in which the Fund may invest include variable rate master demand notes, which are unsecured instruments issued pursuant to an agreement between the issuer and the holder that permit the indebtedness thereunder to vary and provide for periodic adjustments in the interest rate.

Certain of the floating or variable rate obligations that may be purchased by the Fund may carry a demand feature that would permit the holder to tender them back to the issuer of the instrument or to a third party at par value prior to maturity. Some of the demand instruments purchased by the Fund are not traded in a secondary market and derive their liquidity solely from the ability of the holder to demand repayment from the issuer or third party providing credit support. If a demand instrument is not traded in a secondary market, the Fund will nonetheless treat the instrument as liquid for the purposes of its investment restriction limiting investments in illiquid securities unless the demand feature has a notice period of more than seven days; if the notice period is greater than seven days, such a demand instrument will be characterized as illiquid for such purpose. The Fund's right to obtain payment at par on a demand instrument could be affected by events occurring between the date the Fund elects to demand payment and the date payment is due that may affect the ability of the issuer of the instrument or a third party providing credit support to make payment when due. To facilitate settlement, some demand instruments may be held in book entry form at a bank other than the Fund's custodian subject to a sub-custodian agreement approved by the Fund between that bank and the Fund's custodian.

**Money Market Instruments/Securities** 

The Fund may hold money market instruments, including commercial paper, bankers' acceptances, certificates of deposit and other short term debt securities as ancillary liquid assets.

**U.S. Government Securities** 

The Fund may invest without limit in securities issued or guaranteed by the U.S. government or by its agencies or instrumentalities. U.S. government securities in general include a wide variety of U.S. Treasury obligations consisting of bills, notes and bonds, which principally differ only in their interest rates, maturities and times of issuance. Securities issued or guaranteed by U.S. government agencies and instrumentalities are debt securities issued by agencies or instrumentalities established or sponsored by the U.S. government and may be backed only by the credit of the issuing agency or instrumentality. The Fund will invest in such obligations only where the Adviser is satisfied that the credit risk with respect to the issuer is minimal.

Securities issued by the U.S. Treasury generally do not involve the credit risks associated with investments in other types of fixed-income securities, although, as a result, the yields available from these securities are generally lower than the yields available from corporate fixed-income securities. Like other debt securities, however, the values of U.S. government securities change as interest rates fluctuate, which could affect the Fund's net asset value. Since the magnitude of these fluctuations will generally be greater at times when the Fund's average maturity is longer, under certain market conditions the Fund may, for temporary defensive purposes, accept lower current income from short-term investments rather than investing in higher yielding long-term securities. Some U.S. Government securities (such as Fannie Maes and Freddie Macs) are guaranteed as to the payment of principal and interest by the relevant entity (e.g., FNMA or FHLMC) but are not backed by the full faith and credit of the U.S. government. Therefore, the securities would generally be neither issued nor guaranteed by the U.S. Treasury.

**Cyber Security Risk**

In connection with the increased use of technologies such as the Internet and the dependence on computer systems to perform necessary business functions, the Fund is susceptible to operational, information security, and related risks due to the possibility of cyber-attacks or other incidents. Cyber incidents may result from deliberate attacks or unintentional events. Cyber-attacks include, but are not limited to, infection by computer viruses or other malicious software code, gaining unauthorized access to systems, networks, or devices that are used to service the Fund's operations through hacking or other means for the purpose of misappropriating assets or sensitive information, corrupting data, or causing operational disruption. Cyber-attacks may also be carried out in a manner that does not require gaining unauthorized access, such as causing denial-of-service attacks (which can make a website unavailable) on the Fund's website. In addition, authorized persons could inadvertently or intentionally release confidential or proprietary information stored on the Fund's systems.

Cyber security failures or breaches by the Fund's third party service providers (including, but not limited to, the Adviser, distributor, custodian, transfer agent, and financial intermediaries), may cause disruptions and impact the service providers' and the Fund's business operations, potentially resulting in financial losses, the inability of Fund shareholders to transact business and the mutual funds to process transactions, inability to calculate the Fund's net asset value, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or additional compliance costs. The Fund and its shareholders could be negatively impacted as a result of successful cyber-attacks against, or security breakdowns of, the Fund or its third party service providers.

The Fund may incur substantial costs to prevent or address cyber incidents in the future. In addition, there is a possibility that certain risks have not been adequately identified or prepared for. Furthermore, the Fund cannot directly control any cyber security plans and systems put in place by third party service providers. Cyber security risks are also present for issuers of securities in which the Fund invest, which could result in material adverse consequences for such issuers, and may cause the Fund's investment in such securities to lose value.

**Pandemic Risks**

An outbreak of COVID-19 respiratory disease caused by a novel coronavirus was first detected in late 2019 and subsequently spread globally in early 2020. The impact of the outbreak has been rapidly evolving, and cases of the virus have continued to be identified in most developed and emerging countries throughout the world. Many local, state, and national governments, as well as businesses, have reacted by instituting quarantines, border closures, restrictions on travel, and other measures designed to arrest the spread of the virus. The outbreak and public and private sector responses thereto have led to large portions of the populations of many nations working from home for indefinite periods of time, temporary or permanent layoffs, disruptions in supply chains, lack of availability of certain goods, and adversely impacted many industries. These circumstances are evolving, and further developments could result in additional disruptions and uncertainty. The impact of the coronavirus outbreak may last for an extended period of time and result in a substantial economic downturn. Pandemics, including the coronavirus outbreak, have resulted in a general decline in the global economy and negative effects on the performance of individual countries, industries, or sectors. Such negative impacts can be significant in unforeseen ways. Deteriorating economic fundamentals may in turn increase the risk of default or insolvency of particular companies, negatively impact market value, increase market volatility, cause credit spreads to widen, and reduce liquidity. All of these risks may have a material adverse effect on the performance and financial condition of the Fund's investments, and on the overall performance of the Fund.

**OTHER PRACTICES**

**Borrowing**

Borrowing creates an opportunity for increased return, but, at the same time, creates special risks. Furthermore, if the Fund were to engage in borrowing, an increase in interest rates could reduce the value of the Fund's shares by increasing the Fund's interest expense.

Subject to the limitations described under "Investment Limitations" below and elsewhere herein, the Fund may be permitted to borrow for temporary purposes and/or for investment purposes. The Fund does not intend to use leverage in the form of borrowings, and will generally limit its investment holdings to a maximum of 100% of the Fund's net assets. If the Fund were to use borrowings for investment purposes, it would result in leveraging of the Fund's assets and may cause the Fund to liquidate portfolio positions when it would not be advantageous to do so. This borrowing may be secured or unsecured. Provisions of the 1940 Act require the Fund to maintain continuous asset coverage (that is, total assets including borrowings, less liabilities exclusive of borrowings) of 300% of the amount borrowed, with an exception for borrowings not in excess of 5% of the Fund's total assets made for temporary administrative purposes. Any borrowings for temporary administrative purposes in excess of 5% of the Fund's total assets will count against this asset coverage requirement. If the 300% asset coverage should decline as a result of market fluctuations or other reasons, the Fund may be required to sell some of its portfolio holdings within three days to reduce the debt and restore the 300% asset coverage, even though it may be disadvantageous from an investment standpoint if the Fund sells securities at that time. Borrowing will tend to exaggerate the effect on net asset value of any increase or decrease in the market value of the Fund's portfolio. Money borrowed will be subject to interest costs which may or may not be recovered by appreciation of the securities purchased, if any. The Fund also may be required to maintain minimum average balances in connection with such borrowings or to pay a commitment or other fee to maintain a line of credit; either of these requirements would increase the cost of borrowing over the stated interest rate.

**Depositary Receipts**

Depositary receipts include sponsored and unsponsored depositary receipts that are or become available, including American Depositary Receipts ("ADRs"), and Global Depositary Receipts ("GDRs") and other depositary receipts. Depositary receipts are typically issued by a financial institution ("depositary") and evidence ownership interests in a security or a pool of securities ("underlying securities") that have been deposited with the depositary. The depositary for ADRs is typically a U.S. financial institution and the underlying securities are issued by a non-U.S. issuer. ADRs are publicly traded on exchanges or OTC in the United States and are issued through "sponsored" or "unsponsored" arrangements. In a sponsored ADR arrangement, the non-U.S. issuer assumes the obligation to pay some or all of the depositary's transaction fees, whereas under an unsponsored arrangement, the non-U.S. issuer assumes no obligation and the depositary's transaction fees are paid by the ADR holders. In addition, less information is available in the United States about an unsponsored ADR than about a sponsored ADR, and the financial information about a company may not be as reliable for an unsponsored ADR as it is for a sponsored ADR. In the case of GDRs, the depositary can be a non-U.S. or a U.S. financial institution and the underlying securities are issued by a non-U.S. issuer. GDRs allow companies in Europe, Asia, the United States and Latin America to offer shares in many markets around the world, thus allowing them to raise capital in these markets, as opposed to just in their home market. The advantage of GDRs is that shares do not have to be bought through the issuing company's home exchange, which may be difficult and expensive, but can be bought on all major stock exchanges. In addition, the share price and all dividends are converted to the shareholder's home currency. As for other depositary receipts, the depositary may be a non-U.S. or a U.S. entity, and the underlying securities may have a non-U.S. or a U.S. issuer. For purposes of the Fund's investment policies, investments in depositary receipts will be deemed to be investments in the underlying securities. Thus, a depositary receipt representing ownership of common stock will be treated as common stock. Depositary receipts purchased by the Fund may not necessarily be denominated in the same currency as the underlying securities into which they may be converted, in which case the Fund may be exposed to relative currency fluctuations.

**Illiquid Securities** 

The Fund may invest up to 15% of the value of its net assets in illiquid securities. The term "illiquid securities" for this purpose means securities that cannot be disposed of within seven days in the ordinary course of business at approximately the amount at which the Fund has valued the securities. Illiquid securities are considered to include, among other things, written OTC options, securities or other liquid assets being used as cover for such options, repurchase agreements with maturities in excess of seven days, certain loan participation interests, fixed time deposits which are not subject to prepayment or provide for withdrawal penalties upon prepayment (other than overnight deposits), and other securities whose disposition is restricted under the federal securities laws.

To the extent that liquid assignments and loan participations that the Fund holds become illiquid due to the lack of sufficient buyers or market or other conditions, the percentage of the Fund's assets invested in illiquid assets would increase. The Adviser, under the supervision of the Board, monitors Fund investments in assignments and loan participations and will, in such a case, consider appropriate measures to enable the Fund to maintain sufficient liquidity for operating purposes and to meet redemption requests.

**Loans of Portfolio Securities** 

To the extent permissible under its investment policies, the Fund may lend portfolio securities to brokers or dealers or other financial institutions in accordance with policies and procedures of the Trust, as may be adopted from time to time. The procedure for the lending of securities will typically include the following features and conditions. The collateral will consist either of U.S. Government Securities or the borrower of the securities will deposit cash with the Fund in an amount equal to a minimum of 100% of the market value of the securities lent. The Fund will invest the collateral in short-term debt securities, cash equivalents (or pooled investment vehicle interests in cash, cash equivalents and short-term debt instruments) and earn the income thereon. A negotiated portion of the income so earned may be paid to the borrower or the broker who arranged the loan. The collateral will be marked to market daily, and if the value of the collateral drops below the required minimum at any time, the borrower may typically be called upon to post additional collateral. These will be "demand" loans and may be terminated by the Fund at any time. The Fund will receive any dividends and interest paid on the securities lent, although the U.S. federal income tax characteristics of such payment may change. The Fund's performance will continue to reflect changes in the value of the securities loaned.

These transactions must be fully collateralized at all times, but involve some credit risk to the Fund if the borrower or the party (if any) guaranteeing the loan should default on its obligations. In the event of the default or bankruptcy of the other party to a securities loan, the Fund could experience delays in recovering the securities it lent. To the extent that, in the meantime, the value of the securities the Fund lent has increased or the value of the collateral decreased, the Fund could experience a loss. In the event of a default by the borrower, the Fund will, if permitted by law, dispose of such collateral except that the Fund may retain any such part thereof that is a security in which the Fund is permitted to invest. Counterparty risk is increased when the Fund's loans are concentrated with a single or limited number of borrowers. There are no limits on the number of borrowers to which the Fund may lend securities and the Fund may lend securities to only one or a small group of borrowers. In addition, under the Securities Lending Agreement, loans may be made to affiliates of the Securities Lending Agent as identified in such Agreement.

Although voting rights or rights to consent with respect to the loaned securities pass to the borrower, the Fund, as the lender, generally retains the right to call the loans and obtain the return of the securities loaned at any time on reasonable notice, and it will attempt to do so in order that the securities may be voted by the Fund if the holders of such securities are asked to vote upon or consent to matters which the Adviser believes materially affect the investment; however, the Fund may not be able to recall the securities in time for the Fund to be the owner on the record date for determining shareholders entitled to vote or consent on the matter. The Fund may typically also call such loans in order to sell the securities involved.

The Fund did not engage in securities lending during the most recent fiscal year.

**Repurchase Agreements**

The Fund may enter into repurchase agreements. A repurchase agreement is a transaction in which the seller of a security commits itself at the time of sale to repurchase that security from the buyer at a mutually agreed upon time and price. The resale price is in excess of the purchase price and reflects an agreed-upon market interest rate unrelated to the coupon rate on the purchased security. Such transactions afford the Fund the opportunity to earn a return on temporarily available cash at relatively low market risk. The Adviser monitors the value of the securities underlying the repurchase agreement at the time the transaction is entered into and at all times during the term of the repurchase agreement to ensure that the value of the securities always equals or exceeds the repurchase price. The Fund requires that additional securities be deposited if the value of the securities purchased decreases below their resale price and does not bear the risk of a decline in the value of the underlying security unless the seller defaults under the repurchase obligation.

While the underlying security may be a bill, certificate of indebtedness, note or bond issued by an agency, authority or instrumentality of the U.S. government, the obligation of the seller is not guaranteed by the U.S. government and there is a risk that the seller may fail to repurchase the underlying security. In such event, the Fund would attempt to exercise rights with respect to the underlying security, including possible disposition in the market. However, the Fund may be subject to various delays and risks of loss, including (i) possible declines in the value of the underlying security during the period while the Fund seeks to enforce its rights thereto, (ii) possible reduced levels of income and lack of access to income during this period, and (iii) inability to enforce rights and the expenses involved in the attempted enforcement.

Repurchase agreements with maturities of more than seven days will be treated as illiquid securities.

**INVESTMENT LIMITATIONS**

**Fundamental Investment Restrictions**

The following is a description of fundamental policies that may not be changed without the vote of a majority of the Fund's outstanding voting securities. Under the 1940 Act, the vote of a majority of the outstanding securities of a company means the vote, at the annual or a special meeting of the security holders of such company duly called: (A) of 67 per centum or more of the voting securities present at such meeting, if the holders of more than 50 per centum of the outstanding voting securities of such company are present or represented by proxy; or (B) of more than 50 per centum of the outstanding voting securities of such company, whichever is less. Except with respect to restrictions (3), (4), and (8) below, the percentages set forth below and the percentage limitations established under the 1940 Act and the rules and regulations thereunder apply at the time of the purchase of a security and shall not be considered violated unless an excess or deficiency occurs or exists immediately after and as a result of a purchase of such security. With respect to restrictions (3), and (4), in the event that the Fund's borrowings, repurchase agreements and loans of portfolio securities at any time exceed 33<sup>1</sup>/<sub>3</sub>% of the value of the Fund's total assets (including the amount borrowed and the collateral received) less the Fund's liabilities (other than borrowings or loans) due to subsequent changes in the value of the Fund's assets or otherwise, within three days (excluding Sundays and holidays), the Fund will take corrective action to reduce the amount of its borrowings, repurchase agreements and loans of portfolio securities to an extent that such borrowings, repurchase agreements and loans of portfolio securities will not exceed 33<sup>1</sup>/<sub>3</sub>% of the value of the Fund's total assets (including the amount borrowed and the collateral received) less the Fund's liabilities (other than borrowings or loans).

The Fund may not:

(1) With respect to 75% of its total assets, purchase securities of an issuer (other than the U.S. Government, its agencies, instrumentalities or authorities, or repurchase agreements collateralized by U.S. Government securities, and securities of other investment companies) if: (a) such purchase would, at the time, cause more than 5% of the Fund's total assets taken at market value to be invested in the securities of such issuer or (b) such purchase would, at the time, result in more than 10% of the outstanding voting securities of such issuer being held by the Fund.

(2) Purchase securities which would cause 25% or more of the value of its total assets at the time of purchase to be invested in the securities of one or more issuers conducting their principal business activities in the same industry or group of industries, as that term is used in the 1940 Act, and as interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction, from time to time, provided that (i) there is no limitation with respect to the investment in obligations issued or guaranteed by the U.S. Government, any state or territory of the United States, or any of their agencies, instrumentalities, or political subdivisions; and (ii) notwithstanding this limitation or any other fundamental investment limitation, assets may be invested in the securities of one or more investment companies to the extent permitted under the 1940 Act, as interpreted or modified by the SEC, SEC staff or other authority with appropriate jurisdiction, or exemptive or other relief obtained from any of the foregoing;

(3) Borrow money, except as permitted under the 1940 Act, as interpreted or modified by the SEC, SEC staff or other authority with appropriate jurisdiction, or exemptive or other relief obtained from any of the foregoing;

(4) Make loans, except as permitted under the 1940 Act, as interpreted or modified by the SEC, SEC staff or other authority with appropriate jurisdiction, or exemptive or other relief obtained from any of the foregoing;

(5) Act as an underwriter of securities of other issuers except that, in the disposition of portfolio securities, it may be deemed to be an underwriter under the federal securities laws;

(6) Purchase or sell real estate, except as permitted under the 1940 Act, as interpreted or modified by the SEC, SEC staff or other authority with appropriate jurisdiction, or exemptive or other relief obtained from any of the foregoing;

(7) Purchase or sell commodities, except as permitted under the 1940 Act, as interpreted or modified by the SEC, SEC staff or other authority with appropriate jurisdiction, or exemptive or other relief obtained from any of the foregoing; and

(8) Issue senior securities, except for permitted borrowings or as otherwise permitted under the 1940 Act, as interpreted or modified by the SEC, SEC staff or other authority with appropriate jurisdiction, or exemptive or other relief obtained from any of the foregoing.

With respect to restriction (2) above, the Fund will rely on the Global Industry Classification System (GICS).

With respect to restriction (3) above, under current pronouncements of the SEC staff, certain Fund positions may be excluded from the definition of "senior security" so long as the Fund maintains adequate cover, segregation of assets or otherwise. See "Borrowing" above.

With respect to restriction (6) above, the 1940 Act does not prohibit the Fund from purchasing securities of issuers which deal in real estate, securities which are secured by interests in real estate, or securities which represent interests in real estate. Restriction (6) above will be interpreted to permit the Fund to acquire and dispose of real estate or interests in real estate acquired through the exercise of its rights as a holder of debt obligations secured by real estate or interests therein.

With respect to restriction (7) above, the 1940 Act does not prohibit the Fund from purchasing and selling futures contracts and options, entering into foreign exchange contracts or entering into swap agreements and other financial transactions not requiring the delivery of physical commodities, including but not limited to, purchasing or selling commodity exchange-traded funds and exchange-traded notes.

**Non-Fundamental Investment Restrictions**

The restriction set forth below, as well as the Fund's investment objective and each of the other investment restrictions set forth in the Prospectus or this SAI and not designated as fundamental, are not fundamental policies and may be changed by the Board without shareholder approval.

It is contrary to the Fund's present policy to invest more than 15% of the Fund's net assets in illiquid securities. Illiquid securities are defined in accordance with the SEC staff's current guidance and interpretations, which provide that an illiquid security is a security that may not be sold or disposed of in the ordinary course of business within seven days at approximately the value at which the Fund has valued the security.

**PORTFOLIO TURNOVER**

Purchases and sales of portfolio securities may be made as considered advisable by the Adviser, in the best interests of the shareholders. The Fund's portfolio turnover rate may vary from year to year, as well as within a year. The Fund's distributions of any net short-term capital gains realized from portfolio transactions are taxable to shareholders as ordinary income. In addition, higher portfolio turnover rates can result in corresponding increases in portfolio transaction costs for the Fund. See "Portfolio Transactions and Brokerage" in this SAI.

For reporting purposes, the Fund's portfolio turnover rate is calculated by dividing the lesser of purchases or sales of portfolio securities for the fiscal year by the monthly average of the value of the portfolio securities owned by the Fund during the fiscal year. In determining such portfolio turnover, all securities whose maturities at the time of acquisition were one year or less are excluded. A 100% portfolio turnover rate would occur, for example, if all of the securities in the Fund's investment portfolio (other than short-term money market securities) were replaced once during the fiscal year. Portfolio turnover will not be a limiting factor should the Adviser deem it advisable to purchase or sell securities.

**DISCLOSURE OF PORTFOLIO HOLDINGS** 

This Policy sets forth the conditions under which Portfolio Holdings data for the Fund may be disclosed to Third Parties (which may include the public) and Service Providers. No data about the Fund may be disclosed except in accordance with this Policy.

Portfolio Holdings data includes, but is not limited to, the following information about the Fund: (i) specific securities held; (ii) industry sector breakdowns as a percentage of portfolio net assets; (iii) asset composition (e.g., equities versus bonds); (iv) U.S. versus foreign holdings percentage breakdowns and regional breakdowns (e.g., Asia, North America); and (v) top 10 portfolio holdings in order of position size, including percentage of portfolio.

"Third Parties" or a "Third Party" means a person other than a Service Provider, an employee of a Service Provider, a Trustee of the Board, or an officer of the Fund.

"Service Providers" or a "Service Provider" includes, but is not limited to, the investment adviser, administrator, custodian, transfer agent, fund accountant, principal underwriter, software or technology service providers, pricing and proxy voting service providers, research and trading service providers, auditors, accountants, and legal counsel, or any other entity that has a need to know such information in order to fulfill their contractual obligations to provide services to the Fund.

**Policy Overview** 

The Board has adopted, on behalf of the Fund, policies and procedures relating to disclosure of the Portfolio Holdings. These policies and procedures are designed to protect the confidentiality of the Portfolio Holdings' information and to prevent the selective disclosure of such information. These policies and procedures may be modified at any time with the approval of the Board.

In order to protect the Fund from any trading practices or other use by a Third Party that could harm the Fund, Portfolio Holdings' and other Fund-specific information must not be selectively released or disclosed except under the circumstances described below.

The Board will periodically review the list of entities that have received, other than through public channels, Portfolio Holdings data, to ensure that the disclosure of the information was in the best interest of shareholders, identify any potential for conflicts of interest and evaluate the effectiveness of its current portfolio holding policy.

The identity of such entities is provided below:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Name of Recipient** | **Frequency of**<br> **Holdings**<br> **Disclosure** | **Information**<br> **Lag** | **Date of**<br> **Information** | **Date Provided**<br> **to Recipients** |
| Clough Capital Partners L.P.<br> (Adviser) | Daily | None | Daily | Daily |
| ALPS Portfolio Solutions Distributor, Inc.<br> (Distributor) | As needed | None | As needed | As needed |
| ALPS Fund Services, Inc.<br> (Administrator) | Daily | None | Daily | Daily |
| Morrison & Foerster LLP<br> (Counsel) | As needed | None | As needed | As needed |
| State Street Bank & Trust Company<br> (Custodian) | Daily | None | Daily | Daily |
| Independent Registered Public Accountants | As needed | None | As needed | As needed |

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Only officers of the Fund and their authorized agents, including, but not limited to, the Chief Compliance Officer of the Adviser, may approve the disclosure of the Fund's Portfolio Holdings. Except as set forth under "Policy Exceptions" below, exceptions to this Policy may only be made if an officer of the Fund and its authorized agents, including, but not limited to, the Chief Compliance Officer of the Adviser, determines that the disclosure is being made for a legitimate business purpose and such disclosures must be documented and reported to the Board on a quarterly basis. In all cases, Third Parties and Service Providers are required to execute a non-disclosure agreement requiring the recipient to keep confidential any Portfolio Holdings data received and not to trade on the Confidential Portfolio Information (defined below) received. Neither the Trust nor its Service Providers (nor any persons affiliated with either) can receive any compensation or other consideration in connection with the sharing of the Fund's Portfolio Holdings.

Disclosure of the Portfolio Holdings' information that is not publicly available ("Confidential Portfolio Information") may be made to Service Providers. In addition, to the extent permitted under applicable law, the Adviser may distribute (or authorize the custodian or principal underwriter to distribute) Confidential Portfolio Information to the Fund's relevant Service Providers and to facilitate the review of the Fund by certain mutual fund analysts and ratings agencies (such as Morningstar and Lipper Analytical Services) ("Rating Agencies"); provided that such disclosure is limited to the information that the Adviser believes is reasonably necessary in connection with the services to be provided. As noted above, except to the extent permitted under this Policy, Confidential Portfolio Information may not be disseminated for compensation or other consideration.

Before any disclosure of Confidential Portfolio Information to Service Providers or Rating Agencies is permitted, the Fund's Adviser's Chief Compliance Officer (or persons designated by the Adviser's Chief Compliance Officer) must determine in writing that, under the circumstances, the disclosure is being made for a legitimate business purpose. Furthermore, the recipient of Confidential Portfolio Information by a Service Provider or Rating Agency must be subject to a written confidentiality agreement that prohibits any trading upon the Confidential Portfolio Information or the recipient must be subject to professional or ethical obligations not to disclose or otherwise improperly use the information, such as would apply to independent registered public accounting firms or legal counsel.

The Fund's Adviser shall have primary responsibility for ensuring that the Portfolio Holdings' information is disclosed only in accordance with this Policy. As part of this responsibility, the Fund's Adviser will maintain such internal policies and procedures as it believes are reasonably necessary for preventing the unauthorized disclosure of Confidential Portfolio Information.

**Portfolio Holdings**

Except as set forth in this Policy, the full holdings of the Fund will be publicly disclosed on a quarterly basis on forms required to be filed with the U.S. Securities and Exchange Commission ("SEC") as follows: (i) Portfolio Holdings as of the end of each fiscal year will be filed as part of the annual report filed on Form N-CSR; (ii) Portfolio Holdings as of the end of the first and third fiscal quarters will be filed in Form N-PORT (as described below); and (iii) Portfolio Holdings as of the end of the second fiscal quarter will be filed as part of the semi-annual report filed on Form N-CSR. Each fiscal quarter, the Fund will file with the SEC a complete schedule of its monthly portfolio holdings on Form N-PORT. The Fund's holdings as of the end of the third month of every fiscal quarter, as reported on Form N-PORT, will be publicly available on the SEC's website at www.sec.gov within 60 days of the end of the fiscal quarter upon filing. The Trust's Form N-CSRs (and historical Form N-Qs) are also available on the SEC's website at www.sec.gov. Partial portfolio holdings information, including the Fund's top 10 holdings and sector and geographic exposures may be released after a ten (10) day calendar delay.

**Policy Exceptions** 

The following disclosures of Portfolio Holdings are not prohibited by this Policy:

§ Disclosures that are required by law;

§ Disclosures necessary for Service Providers (defined above);

§ Disclosure necessary for Rating Agencies to assess applicable fund ratings;

§ Disclosures necessary to broker-dealers or banks as part of the normal buying, selling, shorting, or other transactions in portfolio securities;

§ Disclosures to the Fund's or Service Providers' regulatory authorities, accountants, or counsel;

§ Disclosures to the Adviser of the Fund of compiled data concerning accounts managed by the Adviser; or

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| | |
|:---|:---|
| § | Any portfolio holdings that precede a full public disclosure (e.g., portfolio holdings that are dated prior to the most recent quarterly disclosure) are not considered to be sensitive, proprietary information of the Fund, and therefore are not subject to the aforementioned disclosure policies. |

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**PORTFOLIO TRANSACTIONS AND BROKERAGE**

**Investment Decisions and Portfolio Transactions**

Investment decisions for the Fund are made with a view to achieving its investment objective. Investment decisions are the product of many factors in addition to basic suitability for the particular client involved (including the Fund). Some securities considered for investment by the Fund may also be appropriate for other clients served by the Adviser. Thus, a particular security may be bought or sold for certain clients even though it could have been bought or sold for other clients at the same time. If a purchase or sale of securities consistent with the investment policies of the Fund and one or more of these clients is considered at or about the same time, transactions in such securities will be allocated among the Fund and clients in a manner deemed fair and reasonable by the Adviser. Particularly when investing in less liquid or illiquid securities of smaller capitalization companies, such allocation may take into account the asset size of the Fund in determining whether the allocation of an investment is suitable. The Adviser may aggregate orders for the Fund with simultaneous transactions entered into on behalf of its other clients so long as price and transaction expenses are averaged either for the portfolio transaction or for that day. Likewise, a particular security may be bought for one or more clients when one or more clients are selling the security. In some instances, one client may sell a particular security to another client. It also sometimes happens that two or more clients simultaneously purchase or sell the same security, in which event each day's transactions in such security are, insofar as possible, averaged as to price and allocated between such clients in a manner which in the Advisor's opinion is equitable to each and in accordance with the amount being purchased or sold by each. There may be circumstances when purchases or sales of portfolio securities for one or more clients will have an adverse effect on other clients, including the Fund.

**Brokerage and Research Services** 

The Adviser places orders for the purchase and sale of portfolio securities, options and futures contracts and buys and sells such securities, options and futures for the Fund through a substantial number of brokers and dealers. In so doing, the Adviser uses its best efforts to obtain for the Fund the most favorable price and execution available, except to the extent it may be permitted to pay higher brokerage commissions as described below. In seeking the most favorable price and execution, the Adviser, having in mind the Fund's best interests, considers all factors it deems relevant, including, by way of illustration, price, the size of the transaction, the nature of the market for the security, the amount of the commission, the timing of the transaction taking into account market prices and trends, the reputation, experience and financial stability of the broker-dealer involved and the quality of service rendered by the broker-dealer in that or other transactions.

The Adviser places orders for the purchase and sale of portfolio investments for the Fund's accounts with brokers or dealers selected by it in its discretion. In effecting purchases and sales of portfolio securities for the accounts of the Fund, the Adviser will seek the best price and execution of the Fund's orders. In doing so, the Fund may pay higher commission rates than the lowest available when the Adviser believes it is reasonable to do so in light of the value of the brokerage and research services provided by the broker effecting the transaction, as discussed below. Although the Fund may use a broker-dealer that sells Fund shares to effect transactions for the Fund's portfolios, the Fund will not consider the sale of Fund shares as a factor when selecting broker-dealers to execute those transactions.

There is generally no stated commission in the case of fixed-income securities and other securities traded on a principal basis in the over-the-counter markets, but the price paid by the Fund usually includes an undisclosed dealer commission or markup. In underwritten offerings, the price paid by the Fund includes a disclosed, fixed commission or discount retained by the underwriter or dealer. Transactions on U.S. stock exchanges and other agency transactions involve the payment by the Fund of negotiated brokerage commissions. Such commissions vary among different brokers. Also, a particular broker may charge different commissions according to such factors as the difficulty and size of the transaction. Transactions in non-U.S. securities generally involve the payment of fixed brokerage commissions, which are generally higher than those in the United States. The purchase by the Fund of participations or assignments may be pursuant to privately negotiated transactions pursuant to which the Fund may be required to pay fees to the seller or forego a portion of payments in respect of the participation agreement.

Advisers or sub-advisers of investment companies and other institutional investors receive research and brokerage products and services (together, "services") from broker-dealers which execute portfolio transactions for the clients of such advisers. Consistent with this practice, the Adviser receives brokerage and research products and services from many broker-dealers with which the Adviser places the Fund's portfolio transactions. These services, which in some cases may also be purchased for cash, may include, among other things, such items as general economic and security market reviews, industry and company reviews, evaluations of securities, recommendations as to the purchase and sale of securities, and services related to the execution of securities transactions. The advisory fees paid by the Fund are not reduced because the Adviser receives such services even though the receipt of such services relieves the Adviser from expenses it might otherwise bear. Research and brokerage services provided by broker-dealers chosen by the Adviser to place the Fund's portfolio transactions may be useful to the Adviser in providing services to the Adviser's other clients, although not all of these services may be necessarily useful and of value to the Adviser in managing the Fund. Conversely, brokerage and research products and services provided to the Adviser by broker-dealers in connection with trades executed on behalf of other clients of the Adviser may be useful to the Adviser in managing the Fund, although not all of these brokerage and research products and services may be necessarily useful and of value to the Adviser in managing such other clients.

In reliance on the "safe harbor" provided by Section 28(e) of the Securities Exchange Act of 1934, as amended (the "1934 Act"), the Adviser may cause the Fund to pay a broker-dealer which provides "brokerage and research services" (as defined for purposes of Section 28(e)) to the Adviser an amount of commission for effecting a securities transaction for the Fund in excess of the commission which another broker-dealer would have charged for effecting that transaction if the Adviser determines in good faith that the commission is reasonable in relation to the value of the brokerage and research services provided by the broker-dealer viewed in terms of either a particular transaction or the Adviser's overall responsibilities to the advisory accounts for which it exercises investment discretion.

The Adviser may place orders for the purchase and sale of exchange-listed portfolio securities with a broker-dealer that is an affiliate of the Adviser where, in the judgment of the Adviser, such firm will be able to obtain a price and execution at least as favorable as other qualified broker-dealers. Pursuant to rules of the SEC, a broker-dealer that is an affiliate of the Adviser may receive and retain compensation for effecting portfolio transactions for the Fund on a securities exchange if the commissions paid to such an affiliated broker-dealer by the Fund on exchange transactions do not exceed "usual and customary brokerage commissions." The rules define "usual and customary" commissions to include amounts which are "reasonable and fair compared to the commission, fee or other remuneration received or to be received by other brokers in connection with comparable transactions involving similar securities being purchased or sold on a securities exchange during a comparable period of time." As required by applicable SEC rules, the Board has adopted procedures which are reasonably designed to provide that any commissions, fees or other remuneration paid to an affiliated broker are consistent with the foregoing standards.

The following tables list the total amount of brokerage commissions paid by the Fund for the fiscal periods noted:

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| | | | |
|:---|:---|:---|:---|
| Fund Name | For the Fiscal Year<br> Ended October 31,<br> 2022 | For the Fiscal Year<br> Ended October 31,<br> 2021 | For the Fiscal Year<br> Ended October 31,<br> 2020 |
| Clough Global Long-Short Fund | $174526 | $222319 | $224549 |

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For the fiscal periods noted, the total brokerage commissions paid by the Fund to brokers and dealers in transactions identified for execution primarily on the basis of research and other services provided to the Fund are summarized below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | For the Fiscal Year<br> Ended October 31,<br> 2022 | For the Fiscal Year<br> Ended October 31,<br> 2022 | For the Fiscal Year<br> Ended October 31,<br> 2021 | For the Fiscal Year<br> Ended October 31,<br> 2021 | For the Fiscal Year<br> Ended October 31,<br> 2020 | For the Fiscal Year<br> Ended October 31,<br> 2020 |
| | Commissions | Transactions | Commissions | Transactions | Commissions | Transactions |
| Clough Global Long-Short Fund | $58687 | $51547829 | $72077 | $61079471 | $41620 | $46449283 |

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The following table lists the total amount of brokerage commissions to brokers who were affiliated with the Fund or the Adviser, as applicable, during the fiscal period noted below:

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| | |
|:---|:---|
| Fund Name | For the Fiscal Year<br> ended October 31,<br> 2022 |
| Clough Global Long-Short Fund | $|

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The Fund may acquire securities of brokers who execute the Fund's portfolio transactions. As of October 31, 2022, the Fund did not own any securities of their regular broker-dealers (or parents).

**PURCHASE & REDEMPTION OF SHARES**

ALPS Fund Services, Inc. (the "Transfer Agent") will maintain accounts for each account holder upon which the registration and transfer of shares are recorded, and any transfers shall be reflected by bookkeeping entry, without physical delivery. Confirmations of each purchase, exchange or redemption are sent to each account holder. Quarterly account statements are also sent, which include shares purchased as a result of a reinvestment of Fund distributions. The Transfer Agent may require that an account holder provide certain requests in writing, accompanied by a valid signature guarantee form, when changing certain information in an account (i.e., wiring instructions, telephone privileges, etc.).

**Share Classes**

Shares of the Fund are currently divided into four share classes – Class A, Investor Class, Class C, and Class I shares.

The assets received by each class of the Fund for the issue or sale of its shares and all income, earnings, profits, losses and proceeds therefrom, subject only to the rights of creditors, are allocated to, and constitute the underlying assets of, that class of the Fund. The underlying assets of each class of the Fund are segregated and are charged with the expenses with respect to that class of the Fund along with a share of the general expenses of the Fund and Trust. Any general expenses of the Fund that are not readily identifiable as belonging to a particular class of the Fund are allocated by or under the direction of the Trustees in such manner as they determine to be fair and equitable.

**Purchase of Shares**

The following table lists the sales charges that will be applied to your purchase of Class A shares, subject to the breakpoint discounts shown in the table and described below, as well as any other reductions or waivers described in the Prospectus or this SAI. Class A shares are sold to investors at the offering price, which is the net asset value per share plus the front-end sales charge.

You may purchase Class A shares at a reduced initial sales charge determined by aggregating the dollar amount of the new purchase (measured by the offering price) and the total prior days net asset value (net amount invested) of all share classes offered by the Fund (Class A, Class C, Investor Class and Class I) and held by you or held in accounts identified the section of the Prospectus entitled "Aggregating Accounts," and applying the sales charge applicable to such aggregate amount. In order to obtain such a discount, you must provide sufficient information to your financial intermediary at the time of purchase to permit verification that the purchase qualifies for the reduced sales charge, such as account statements or confirmation statements. The right of accumulation is subject to modification or discontinuance at any time with respect to all shares purchased thereafter.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Purchase Amount** | **Investor Class**<br> **(Sales Charge)** | **Class A** <br> **(Sales Charge)**  | **Class C** <br> **(Sales Charge)**  | **Class I** <br> **(Sales Charge)**  |
| Less than $50,000 |  | 5.50% | None\*\* |  |
| $50,000 but less than $100,000 |  | 4.50% | None\*\* |  |
| $100,000 but less than $250,000 |  | 3.50% | None\*\* |  |
| $250,000 but less than $500,000 |  | 2.50% | None\*\* |  |
| $500,000 but less than $1 million |  | 2.00% | None\*\* |  |
| $1 million or greater |  | 0.00%\* | None\*\* |  |

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\* You may purchase Class A shares in amounts of $1 million or more without paying an initial sales charge, but if you redeem those shares within 12 months of purchase, you will generally pay a CDSC of 1.00%. See Section titled **"Contingent Deferred Sales Charge"** below.

\*\* A contingent deferred sales charge of 1.00% may apply to shares redeemed within 12 months. Class C shares offer the ability for payment of up to 0.75% of net assets for payment to financial intermediaries for the provision of distribution services and up to 0.25% of net assets for the provision of ongoing services provided by the financial intermediary on behalf of its clients. The shares are not offered directly to individual investors. Consult with your financial intermediary representative for additional information on whether the shares are an appropriate investment choice.

Class I shares may be available on brokerage platforms offered by intermediaries that have agreed with the Fund's Distributor to offer such shares solely when acting as an agent for the investor. An investor transacting in Class I shares in these programs may be required to pay a commission and/or other compensation to the broker. Shares of the Fund are available in other share classes that have different fees and expenses.

**Dealer Commissions and Compensation**

Class A Shares

Commissions (up to 1.00%) are paid to dealers who initiate and are responsible for certain Class A share purchases not subject to sales charges. These purchases consist of purchases of $1 million or more; purchases by employer-sponsored defined contribution-type retirement plans investing $1 million or more or with 100 or more eligible employees; and purchases made at net asset value by certain retirement plans, endowments and foundations with assets of $10 million or more. Commissions on such investments (other than IRA rollover assets that roll over at no sales charge under the Fund's IRA rollover policy as described in the Prospectus) are paid to dealers at the following rates: 1.00% on amounts of less than $4 million, 0.50% on amounts of at least $4 million but less than $10 million and 0.25% on amounts of at least $10 million. Commissions are based on cumulative investments over the life of the account with no adjustment for redemptions, transfers, or market declines. For example, if a shareholder has accumulated investments in excess of $4 million (but less than $10 million) and subsequently redeems all or a portion of the account(s), purchases following the redemption will generate a dealer commission of 0.50%.

Class C Shares

ALPS Portfolio Solutions Distributor, Inc. ("APSD" or the "Distributor") may compensate your financial intermediary at the time of sale at a commission rate of 1.00% of the net asset value of the Class C shares purchased. Service providers to qualified plans will not receive this amount if they receive 12b-1 fees from the time of initial investment of qualified plan assets in Class C shares.

**Underwriting Concessions**

For the Class A shares, the underwriter's commission (paid to APSD, the Fund's principal underwriter) is the sales charge shown in the Prospectus, less any applicable dealer concession. The dealer concession is paid to those firms selling shares as a member of the Fund's distribution syndicate. The dealer concession is the same for all financial intermediaries. The Distributor may from time to time allow financial intermediaries selling shares of the Fund to retain 100% of the sales charge discussed above. In such cases, the financial intermediary could be deemed an "underwriter" under the Securities Act of 1933, as amended.

The following chart reflects the total front-end sales charges paid in connection with the sale of Class A shares of the Fund and the amount retained by the Distributor for the fiscal year or period noted below:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | For the Fiscal Year Ended October 31, 2022 | For the Fiscal Year Ended October 31, 2022 | For the Fiscal Year Ended October 31, 2021 | For the Fiscal Year Ended October 31, 2021 | For the Fiscal Year Ended October 31, 2020 | For the Fiscal Year Ended October 31, 2020 |
| | Total Sales Charge | Amount Retained | Total Sales Charge | Amount Retained | Total Sales Charge | Amount Retained |
| Clough Global Long-Short Fund | $0 | $0 | $1612 | $414 | $1520 | $234 |

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Other Information

The minimum initial investments in the Fund are set forth in the Prospectus.

Shares of the Fund may be purchased on any business day at the net asset value per share next determined after receipt of a purchase order. Share certificates will not be issued. Share purchase orders are effective on the date the Fund receives a completed Account Application Form (and other required documents) and federal funds become available.

Initial and subsequent investments may also be made by wire transfer. Shareholders should note that their bank may charge a fee in connection with transferring money by bank wire.

For a share purchase order for the Fund to become effective on a particular business day, prior to 4:00 p.m. (Eastern time): (i) in the case of a wire transfer payment, a purchaser must call 855.425.6844 to inform the Transfer Agent of an incoming wire transfer; or (ii) in the case of payment by check or money order, a complete share purchase order must be actually received by the Transfer Agent, and, in either case, federal funds must be received by the Transfer Agent, on behalf of the Fund. If federal funds are received by the Transfer Agent that same day, the order will be effective on that day. If the Fund receives notification of a wire transfer or a complete share purchase order after 4:00 p.m. (Eastern Time), or if federal funds are not received by the Transfer Agent, such purchase order shall be executed as of the date that federal funds are actually received.

The price of the Fund's shares and the valuation of Fund assets are discussed in "Net Asset Value."

Descriptions of sales charge waivers and discounts, if any, for Class A Share with respect to financial intermediaries are reproduced in "Appendix A – Intermediary Specific Sales Charge Waivers and Discounts" to the Fund's prospectus.

**USPS**

The Fund does not consider the U.S. Postal Service or other independent delivery services to be its agent. Therefore, deposit in the mail or with such services, or receipt at the Fund's post office box, of purchase orders or redemption requests does not constitute receipt by the Fund.

**Cash Equivalents**

The Fund will accept purchases only in U.S. dollars drawn from U.S. financial institutions. Cashier's checks, third party checks, money orders, credit card convenience checks, cash or equivalents or payments in foreign currencies are not acceptable forms of payment.

**Redemption of Shares**

If the Board determines that it is in the best interests of the remaining shareholders of the Fund, the Fund may pay the redemption price in whole, or in part, by a distribution in kind from the Fund, in lieu of cash, taking such securities at their value employed for determining such redemption price, and selecting the securities in such manner as such Board may deem fair and equitable. A shareholder who receives a distribution in kind may incur a brokerage commission upon a later disposition of such securities and may receive less than the redemption value of such securities or property upon sale, particularly where such securities are sold prior to maturity. However, the Fund is required to redeem shares solely for cash up to the lesser of $250,000 or 1% of the NAV of the Fund during any 90-day period for any one shareholder. Should redemptions by any shareholder exceed such limitation, the Fund will have the option of redeeming the excess in cash or in-kind. Redemption in kind is not as liquid as a cash redemption.

Under the 1940 Act, the Fund may suspend the right of redemption or postpone the date of payment upon redemption for any period: (i) during which the NYSE is closed, other than customary weekend and holiday closings; (ii) during which trading on the NYSE is restricted; or (iii) during which (as determined by the SEC by rule or regulation) an emergency exists as a result of which disposal or valuation of portfolio securities is not reasonably practicable, or for such other periods as the SEC may permit. The Fund may also suspend or postpone the recordation of the transfer of its shares upon the occurrence of any of the foregoing conditions.

*Redemption Procedures.* The Fund will redeem all full and fractional shares of the Fund on any business day at the applicable net asset value determined after the receipt of proper redemption instructions, less any applicable redemption fees. Shareholders liquidating their holdings will receive upon redemption all dividends reinvested through the date of redemption. If notice of redemption is received on any business day, the redemption will be effective on the date of receipt. Payment will ordinarily be made on the next business day, but, in any case, within no more than seven business days from the date of receipt. If the notice is received on a day that is not a business day or after the close of regularly scheduled trading on the NYSE, the redemption notice will be deemed received as of the next business day. The value of shares at the time of redemption may be more or less than the shareholder's cost.

No redemption requests will be processed until the Fund has received a completed Purchase Application, and no redemption of shares purchased by check will be made until all checks received for such shares have been collected, which may take up to 15 days or more.

*Redemption Fees.* If you sell your shares of the Fund after holding them 30 calendar days or less, a 2% short-term redemption fee may be deducted from the redemption amount. For this purpose, shares held longest will be treated as being redeemed first and shares held shortest as being redeemed last. The fees are paid to the Fund and are designed to help offset the brokerage commissions, market impact and other costs associated with short-term shareholder trading.

The short-term redemption fee does not apply to: (i) redemptions of shares acquired by reinvesting dividends and distributions; (ii) rollovers, transfers and changes of account registration within the Fund as long as the money never leaves the Fund; and (iii) redemptions in-kind.

The Fund also permits waivers of the short-term redemption fee for the following transactions:

● Redemptions related to death or due to a divorce decree;

● Certain types of IRA account transactions, including: redemptions pursuant to systematic withdrawal programs, required minimum distributions, withdrawals due to disability or death, return of excess contribution amounts and redemptions related to payment of custodian fees; and

● Certain types of employer-sponsored and 403(b) retirement plan transactions, including: loans or hardship withdrawals, minimum required distributions, redemptions pursuant to systematic withdrawal programs, forfeiture of assets, return of excess contribution amounts, redemptions related to payment of plan fees and redemptions related to death, disability or qualified domestic relations order.

The application of short-term redemption fees and waivers may vary among intermediaries and certain intermediaries may not apply the waivers listed above. If you purchase or sell Fund shares through an intermediary, you should contact your intermediary for more information on whether the short-term redemption fee will be applied to redemptions of your shares.

The Fund reserves the right to modify or eliminate the short-term redemption fee or waivers at any time. Investment advisers or their affiliates may pay short-term redemption fees on behalf of investors in managed accounts. Unitized group accounts consisting of qualified plan assets may be treated as a single account for redemption fee purposes.

*Contingent Deferred Sales Charge ("CDSC").* Class A share purchases of $1 million or more and any Class C share purchases are subject to a CDSC of 1% if those shares are redeemed within 12 months of purchase for Class A shares, or 12 months of the initial or subsequent purchase for any Class C shares, subject to certain exceptions disclosed at the time of purchase.

The Fund may waive the imposition of a CDSC on redemption of Fund shares under certain circumstances and conditions, including without limitation, the following:

● Redemptions following the death or permanent disability (as defined by Section 72(m)(7) of the Code) of a shareholder if made within one year of death or the initial determination of permanent disability. The waiver is available only for shares held at the time of death or initial determination of permanent disability: and

● Required minimum distributions from a tax-deferred retirement plan or an individual retirement account (IRA) as required under the Code. The waiver of the CDSC for required distributions will be as a percentage of assets held in the Fund.

If you think you may be eligible for a CDSC waiver, contact your financial intermediary. You must notify the Fund prior to the redemption request to ensure your receipt of the waiver.

*Redemption By Mail.* Shares may be redeemed by mail by submitting a written request from the registered owner(s) signed exactly as shares are registered. Signature guarantees by an acceptable guarantor are required to redeem amounts greater than $50,000 or to have proceeds sent to an address other than the address of record. The Transfer Agent has adopted standards and procedures pursuant to which signature-guarantees in proper form generally will be accepted from domestic banks, brokers, dealers, credit unions, national securities exchanges, registered securities associations, clearing agencies and savings associations, as well as from participants in the New York Stock Exchange Medallion Signature Program, the Securities Transfer Agents Medallion Program ("STAMP") and the Stock Exchanges Medallion Program. Shareholders with any questions regarding signature-guarantees should contact the Transfer Agent.

In certain instances, the Transfer Agent may require additional documents such as, but not limited to, trust instruments, death certificates, appointments as executor or administrator or certificates of corporate authority.

Checks for redemption proceeds will be mailed to the address of record within seven days of redemption.

**Redemption Proceeds**

The Fund is not responsible for losses or fees resulting from posting delays or non-receipt of redemption payments when shareholder payment instructions are followed.

*Redemption By Wire.* If redemption by wire has been elected in the Purchase Application, shares may be redeemed on any business day upon request made by telephone or letter. A shareholder or any authorized agent (so designated on the Account Application Form) must provide the Transfer Agent with the dollar or share amount to be redeemed, the account to which the redemption proceeds should be wired, the name of the shareholder and the shareholder's account number. Shareholders should note that their bank may charge a fee in connection with transferring money by wire.

A shareholder may change its authorized agent, the address of record or the account designated to receive redemption proceeds at any time by providing the Transfer Agent with written instructions signature guaranteed as described above.

*Telephone Redemption.* A shareholder may request redemption by calling the Transfer Agent at 855.425.6844. Proceeds from telephone redemptions will be forwarded to the shareholder by check unless the shareholder has requested redemption by wire in the manner described above under "Redemption by Wire." The check will be made only payable to the registered shareholder and sent to the address of record on file with the Transfer Agent. The Fund reserves the right to refuse a telephone request for redemption if it is believed advisable to do so. Procedures for redeeming shares by telephone may be modified or terminated at any time by the Fund. Neither the Fund nor the Transfer Agent will be liable for following redemption instructions received by telephone which are reasonably believed to be genuine, and the shareholder will bear the risk of loss in the event of unauthorized or fraudulent telephone instructions. The Fund will employ reasonable procedures to confirm that instructions communicated by telephone are genuine. The Fund and/or the Transfer Agent may be liable for any losses due to unauthorized or fraudulent instructions if they do not follow such procedures. The Fund may require personal identification codes.

**Rule 12b-1 Plans**

As described in the Prospectus, the Fund has adopted a separate plan of distribution for Investor Class, Class A and Class C shares, pursuant to Rule 12b-1 under the 1940 Act (each, a "Plan" and collectively, the "Plans"). The Plans allow the Fund, as applicable, to use Investor Class, Class A and/or Class C assets to pay fees in connection with the distribution and marketing of Investor Class, Class A and/or Class C shares, respectively, and/or the provision of ongoing services for the benefit of Investor Class, Class A and/or Class C shareholders. The Plans permit payment for services in connection with the administration of plans or programs that use Investor Class, Class A and/or Class C shares of the Fund, as applicable, as their funding medium and for related expenses.

Under the terms of the Plans, the Trust is authorized to make payments to the Distributor for remittance to financial intermediaries as compensation for distribution and/or ongoing services for the benefit of shareholders that are performed by a financial intermediary for its customers who are also investors in the Fund. Financial intermediaries may from time to time be required to meet certain criteria in order to receive 12b-1 fees. Each Plan permits payment for services and related expenses in connection with a financial intermediary's administration of mutual fund distribution platforms that offer Investor Class, Class A and/ or Class C shares of the Fund.

The Plans permit the Fund to make payments at an annual rate of up to 0.25% of the Fund's average daily net assets attributable to its Investor Class and Class A shares, and 1.00% of the Fund's average daily net assets attributable to its Class C shares. Because these fees are paid out of the Fund's Investor Class, Class A and Class C assets on an ongoing basis, over time they will increase the cost of an investment in Investor Class, Class A and Class C shares.

The Distributor may retain some or all compensation payable pursuant to the Plans under certain circumstances, including but not limited to, such as if a financial intermediary resigns as the broker/dealer of record, or such financial intermediary failing to meet certain eligibly standards to be able to continue to be the broker/dealer of record.

For Class C shares, the Distributor is entitled to retain all fees paid under the Plan for the first 12 months on any investment in Class C shares to recoup the expenses with respect to the payment of commissions on sales of Class C shares. Financial intermediaries will become eligible for the Class C Plan compensation beginning in the 13th month following the purchase of Class C shares, although the Distributor may, pursuant to a written agreement between the Distributor and a particular financial intermediary, pay such financial intermediary 12b-1 fees prior to the 13th month following the purchase of Class C shares.

Each Plan may be terminated by vote of a majority of the Independent Trustees, or by vote of a majority of the outstanding voting securities of the relevant class of shares of the Fund. The Plan may be amended by vote of the relevant Trustees, including a majority of the relevant Independent Trustees, cast in person at a meeting called for that purpose. Any change in the Plans that would materially increase the fees payable thereunder by the relevant class of shares of the Fund requires approval by a vote of the holders of a majority of such shares outstanding. The Trustees review quarterly written reports of such costs.

The Plans will continue in effect for successive one-year periods, provided that each such continuance is specifically approved (i) by the vote of a majority of the Independent Trustees of the Trust who have no financial interest in the operation of the Plan and (ii) by the vote of a majority of the entire Board cast in person at a meeting called for that purpose.

For the fiscal year ended October 31, 2022, the total amounts paid by the Investor Class shares, Class A and Class C shares of the Fund to APSD (substantially all of which APSD paid out as compensation to broker-dealers and other service providers) under each Class's respective Plan are summarized below.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **<u>Amounts Expensed Under the 12b-1 Plan for the Fiscal Year Ended October 31, 2022</u>** | **<u>Amounts Expensed Under the 12b-1 Plan for the Fiscal Year Ended October 31, 2022</u>** | **<u>Amounts Expensed Under the 12b-1 Plan for the Fiscal Year Ended October 31, 2022</u>** | **<u>Amounts Expensed Under the 12b-1 Plan for the Fiscal Year Ended October 31, 2022</u>** | **<u>Amounts Expensed Under the 12b-1 Plan for the Fiscal Year Ended October 31, 2022</u>** | **<u>Amounts Expensed Under the 12b-1 Plan for the Fiscal Year Ended October 31, 2022</u>** | **<u>Amounts Expensed Under the 12b-1 Plan for the Fiscal Year Ended October 31, 2022</u>** | **<u>Amounts Expensed Under the 12b-1 Plan for the Fiscal Year Ended October 31, 2022</u>** |
|  | Advertising<br> and<br> Literature | Printing and Mailing<br> of Prospectuses to<br> other than current<br> shareholders | Compensation<br> to<br> Underwriters | Compensation<br> to<br> Broker-Dealers | Compensation<br> to<br> Sales Personnel | Interest,<br> carrying or other<br> finance charges | Total <br> 12b-1 Payments  |
| Clough Global Long-Short Fund |  |  |  |  |  |  |  |
| Investor Class Shares | $-- | $-- | $-- | $581 | $-- | $-- | $581 |
| Class A Shares | $-- | $-- | $-- | $5437 | $-- | $-- | $5437 |
| Class C Shares | $-- | $-- | $-- | $6654 | $-- | $-- | $6654 |

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**Shareholder Services Plans for Investor Class and Class A Shares**

The Fund has adopted non 12b-1 shareholder services plans (the "Services Plans") with respect to the Fund's Investor Class and Class A shares. Under the Services Plans, the Fund is authorized to pay a financial intermediary, an aggregate fee in an amount not to exceed on an annual basis 0.10% of the average daily net asset value of the Investor Class and Class A shares of the Fund attributable to or held in the name of the financial intermediary for its clients as compensation for activities related to maintaining customer accounts that hold Fund shares. These activities may include, but are not limited to, establishing and maintaining Fund shareholder accounts on a transaction processing and record keeping system, providing Fund shareholders with the ability to access current Fund information, including without limitation, share balances, dividend information and transaction history, and permitting the Fund's Transfer Agent to receive order instructions from or on behalf of Fund shareholders for the purchase or redemption of Investor Class and Class A shares. None of these activities include distribution services, pursuant to an agreement with a financial intermediary. Any amount of such payment under the Services Plans not paid during the Fund's fiscal year for such services shall be reimbursed to the Fund.

**TRUSTEES AND OFFICERS**

The business and affairs of the Fund are overseen by the Board. The Board is currently comprised of five Trustees, three of whom have no affiliation or business connection with the Adviser or any of its affiliated persons and do not own any stock or other securities issued by the Adviser. These three Trustees are not "interested persons" (as such term is defined under the 1940 Act) of the Trust, and are referred to as "Independent Trustees." The two other Trustees (the "Interested Trustees") are affiliated with the Adviser or the Distributor. Information about the Trustees and the Trust's officers appears below. Unless otherwise noted, current occupations and directorships stated below have been held for the past five years.

**INDEPENDENT TRUSTEES**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name,** <br> **Address\*** <br> **& Year of Birth**  | **Position(s)** <br> **Held with** <br> **Trust**  | **Term of** <br> **Office and** <br> **Length of** <br> **Time Served\*\***  | **Principal** <br> **Occupation(s) During** <br> **Past 5 Years**  | **Number of** <br> **Funds in Fund Complex** <br> **Overseen by Trustee\*\*\***  | **Other** <br> **Directorships** <br> **Held by** <br> **Trustee**  |
| **Clifford J. Weber,** <br> 1963 | Trustee and Chairman | Trustee since 2015 and Chairman since 2017 | Mr. Weber is the founder of Financial Products Consulting Group, LLC (a consulting firm). | 4 | Janus Detroit Street Trust (6 funds); Clayton Street Trust (3 funds); Clough Global Equity Fund (1 fund); Clough Global Dividend and Income Fund (1 fund); Clough Global Opportunities Fund (1 fund); Global X Funds (80 funds). |
| **Jeremy W. Deems,** <br> 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. | 2 | Mr. Deems is a Trustee of ALPS ETF Trust (23 funds); ALPS Variable Investment Trust (7 funds); Financial Investors Trust (29 funds); and Reaves Utility Income Fund (1 fund). |
| **James M. Maxwell** <br> 1954 | Trustee | Since 2015 | Mr. Maxwell is President of SPAD Associates (a private investigation and consulting company) and an Associate at Buckley Petersen Global (an investigative and security expertise firm). | 1 |  |
| **Edmund J. Burke** <br> 1961 | Trustee | Since 2015 | Mr. Burke joined ALPS in 1991 and served as the President and Director of ALPS Holdings, Inc., and ALPS Advisors, Inc., and Director of ALPS Distributors, Inc., ALPS Fund Services, Inc., and ALPS Portfolio Solutions Distributor, Inc. Mr. Burke retired from ALPS in June 2019. Mr. Burke is currently a partner at ETF Action, a web-based system that provides data and analytics to registered investment advisers, (since 2020) and a Director of Alliance Bioenergy Plus, Inc., technology company focused on emerging technologies in the renewable energy, biofuels, and bioplastics technology sectors (since 2020). | 5 | Mr. Burke is a Trustee/Director of Financial Investors Trust (29 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); ALPS ETF Trust (23 funds). |

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**INTERESTED TRUSTEES**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name,** <br> **Address\* <br> & Year of Birth**  | **Position(s)** <br> **Held with** <br> **Trust**  | **Term of Office** <br> **and Length of** <br> **Time Served\*\***  | **Principal** <br> **Occupation(s)** <br> **During Past 5** <br> **Years**  | **Number of** <br> **Funds in Fund Complex** <br> **Overseen by Trustee\*\*\***  | **Other** <br> **Directorships** <br> **Held by** <br> **Trustee**  |
| **Kevin McNally**, <br> 1969 | Trustee<br>| Trustee since 2017<br>| Mr. McNally has over 30 years of industry experience focusing almost exclusively on closed-end funds. Mr. McNally is currently a Managing Director at Clough and serves as the portfolio manager for an investment fund advised by Clough that invests primarily in closed-end funds. | 4 | Clough Global Dividend and Income Fund (1 fund); Clough Global Opportunities Fund(1 fund); and Clough Global Equity Fund (1 fund). |

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**ADDITIONAL OFFICERS**

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| | | | |
|:---|:---|:---|:---|
| **Name, Address\* &**<br> **Year of Birth** | **Position(s)**<br> **Held with**<br> **Trust** | **Term of Office and** <br> **Length of** <br> **Time Served\*\***  | **Principal Occupation(s) During** <br> **Past 5 Years**  |
| **Lainey Ejiasa,** <br> 1986 | President | Since 2022 | Ms. Ejiasa joined ALPS in 2010 and is currently Vice President of Relationship Management. She has served in that role overseeing the client experience since 2016. Prior to that, Ms. Ejiasa worked in the Fund Administration Team and later the Key Account Team for ALPS Advisors (2010-2016), providing platform due diligence, fund marketing, competitive analysis, wholesaler education, and client relationship management. She also holds FINRA Series 7 and 63 licenses. |

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| | | | |
|:---|:---|:---|:---|
| **Ryan Johanson,** <br> 1982 | Treasurer | Since 2021 | Mr. Johanson joined ALPS in 2014. He is currently a Fund Controller of ALPS and has served in that role since 2016. Prior to that, Mr. Johanson served as a Financial Reporting Manager at ALPS (2014 – 2016). Mr. Johanson is also Treasurer and Principal Financial Officer for Alpha Alternative Assets Fund. |
| **Lucas Foss** <br> 1977 | Chief Compliance Officer and Anti-Money Laundering Chief Compliance Officer | Since 2018 | Mr. Foss has over 17 years of experience within the fund services industry and currently serves as Vice President and Deputy Chief Compliance Officer at ALPS Fund Services, Inc. ("ALPS"). Prior to rejoining ALPS in November 2017, Mr. Foss served as the Director of Compliance at Transamerica Asset Management ("TAM") beginning in July 2015. Prior to TAM, Mr. Foss served as a Deputy Chief Compliance Officer at ALPS. Mr. Foss received a B.A. in Economics from the University of Vermont and holds the Certified Securities Compliance Professional (CSCP) designation. |
| **Nicholas Adams,** <br> 1983 | Secretary | Since 2022 | Mr. Adams is Principal Legal Counsel at SS&C Technologies and has served in that role since 2022. Prior to this he was an Associate Attorney at Arnold, Newbold Sollars and Hollins, P.C. (2020-2022) as well as Stanziola Estate Law (2018-2020). Prior to becoming an attorney, Mr. Adams held various roles at Empower Retirement including: Compliance Analyst (2018), Quality Assurance Analyst (2016-2018) and Customer Service Representative (2014-2016). |
| **Alex Marks** <br> 1974 | Assistant Secretary | Since 2021 | Mr. Marks joined ALPS in 2006 and is currently Senior Paralegal Manager of ALPS. Mr. Marks is also Assistant Secretary of the Alpha Alternative Assets Fund. |

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\* All communications to Trustees and Officers may be directed to Clough Funds Trust, 1290 Broadway, Suite 1000, Denver, Colorado 80203, except for Mr. McNally. For Mr. McNally, all communications may be sent to Clough Capital Partners L.P., 53 State Street, 27<sup>th</sup> Floor, Boston, Massachusetts 02109.

\*\* This is the period for which the Trustee or Officer began serving the Trust. Each Trustee and Officer serves an indefinite term, until his successor is elected or appointed, or until he or she sooner dies, resigns or is removed.

\*\*\* The Fund Complex consists of the Fund, Clough Global Dividend and Income Fund, Clough Global Equity Fund, and Clough Global Opportunities Fund. Mr. Burke is a member of the Board of each such fund. Mr. Weber and Mr. McNally are members of the Board of each such fund. Mr. Deems is a member of the Board of the Fund.

*Additional Information about the Trustees' Qualifications and Experience*

The following is a brief discussion of the education, experience, qualifications, and/or skills that led to the conclusion, as of the date of this SAI, that each person identified below should serve as a Trustee for the Trust. Among the attributes or skills common to all Trustees are their ability to review critically, evaluate, question and discuss information provided to them, to interact effectively with the other Trustees, the Adviser, other service providers, counsel and the independent registered public accounting firm, and to exercise effective business judgment in the performance of their duties as Trustees. Each Trustee's ability to perform his duties effectively has been attained through the Trustee's business, consulting, public service, professional and/or academic positions and through experience from service as a board member of other registered investment companies, public companies, and/or non-profit entities or other organizations. Each Trustee's ability to perform his duties effectively also has been enhanced by his educational background, professional training, and/or other life experiences. The specific experience, qualifications, attributes and/or skills that led to the conclusion that a Trustee should serve as a Trustee of the Trust are as set forth below.

Jeremy W. Deems

Mr. Deems has been an Independent Trustee of the Trust since inception. In 2007, Mr. Deems co-founded Green Alpha Advisors, LLC, a registered investment adviser, for which he currently serves as Co-Founder, Chief Compliance Officer and Chief Financial Officer. Mr. Deems is also Co-Portfolio Manager of the Shelton Green Alpha Fund. Prior to co-founding Green Alpha Advisors, Mr. Deems was CFO and Treasurer of Forward Management, LLC, investment advisor to the Forward Mutual Funds, 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. Mr. Deems received a B.S. and a MBA in finance from Saint Mary's College of California and was a licensed Certified Public Accountant and a member of the American Institute of Certified Public Accountants from 2001 to 2006. Mr. Deems has been determined by the Board to be an audit committee financial expert as such term is defined in the applicable rules of the SEC.

James M. Maxwell

Mr. Maxwell has been an Independent Trustee of the Trust since inception. Mr. Maxwell is President of SPAD Associates (a private investigation and consulting company) and an Associate at Buckley Petersen Global (an investigative and security expertise firm). Mr. Maxwell also serves as a contributor at CNN relating to subjects on law enforcement and terrorism. Prior to joining SPAD Associates and Buckley Petersen Global, 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, a Special Agent with Naval Investigative Service from 1981 to 1982, and a support employee with the Federal Bureau of Investigation from 1975 to 1981. Mr. Maxwell received a B.S. in criminal justice from John Jay College.

Clifford J. Weber

Mr. Weber has been an Independent Trustee of the Trust since inception. Mr. Weber is the founder of Financial Products Consulting Group, LLC. 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. Mr. Weber received a B.A. in biochemistry from Dartmouth College and a M.S.E. in systems – with a focus in operations research from the University of Pennsylvania.

Edmund J. Burke

Mr. Burke has been a Trustee of the Trust since inception, and an Independent Trustee of the Trust since January 27, 2022. Mr. Burke joined ALPS Fund Services, Inc., the Fund's administrator, in 1991 and retired in 2019. He previously served as Director of ALPS Holdings, Inc., ALPS Advisors, Inc., ALPS Distributors, Inc., the Funds' principal underwriter, and ALPS Portfolio Solutions Distributor, Inc. Mr. Burke has over 20 years of financial services and investment management experience. Before joining ALPS, Mr. Burke was a Regional Vice President for the Pioneer Funds in Boston and has also worked with Fidelity. Mr. Burke has a B.A. in Economics from the University of New Hampshire. He was selected to serve as a Trustee of the Trust based on his business, financial services and investment management experience.

Kevin McNally

Mr. McNally was elected a Trustee by the Board of Trustees on April 30, 2017. He is currently a Managing Director at Clough Capital Partners L.P. and serves as the Portfolio Manager for an investment fund advised by Clough that invests primarily in closed-end funds ("CEFs"). He has over 30 years of industry experience focusing almost exclusively on CEFs. Prior to joining Clough in 2014, he served as the Director of Closed-End Funds at ALPS Fund Services, Inc. from 2003 to 2014, where he was instrumental in launching approximately $13 billion in total assets of CEFs, including the three Clough CEFs. Prior to that, Mr. McNally was Director of Closed-End Fund and ETF Research at Smith Barney, a division of Citigroup Global Markets, Inc. from 1998 to 2003, and Director of Closed-End Fund and ETF Marketing at Morgan Stanley Dean Witter Discover & Co. from 1997 to 1998. Previously, he was an Analyst covering CEFs in the Mutual Fund Research Department at Merrill Lynch, Pierce, Fenner, & Smith, Inc. from 1994 to 1997, and also was Manager of the Closed-End Fund Marketing Department at Prudential Securities from 1992 to 1994. He has been quoted in *The Wall Street Journal, Barrons*, and several other publications and has also appeared on TV as a CEF and ETF expert. Mr. McNally received a B.A. degree from the University of Massachusetts at Amherst in 1991 and an MBA in Finance from New York University's Stern School of Business in 1998.

This disclosure and the identification of a Trustee as holding a particular position or designation is not intended to hold out any Trustee as being an "expert" for any purpose, and does not impose on such Trustee any duties, obligations or liability that are greater than the duties, obligations and liability otherwise imposed on all members of the Board.

*Leadership Structure and Oversight Responsibilities*

Overall responsibility for oversight of the Fund rests with the Trustees. The Trust has engaged the Adviser to manage the Fund's portfolio on a day-to day basis. The Board is responsible for overseeing the Adviser and other service providers in the operations of the Fund in accordance with the provisions of the 1940 Act, applicable provisions of state and other laws and the Trust's Declaration of Trust. The Board is currently composed of five members, three of whom are Independent Trustees. The Board meets at regularly scheduled quarterly meetings each year. In addition, the Board may hold special in-person or telephonic meetings or informal conference calls to discuss specific matters that may arise or require action between regular meetings. As described below, the Board has established a Nominating and Corporate Governance Committee and an Audit Committee, and may establish ad hoc committees or working groups from time to time, to assist the Board in fulfilling its oversight responsibilities. The Independent Trustees have also engaged independent legal counsel to assist them in performing their oversight responsibilities. The Board met four times during the fiscal year ended October 31, 2022.

The Board has appointed Mr. Weber, an Independent Trustee, to serve in the role of Chairman. The Chairman's role is to preside at all meetings of the Board and to act as a liaison with the Adviser, other service providers, counsel and other Trustees generally between meetings. The Chairman may also perform such other functions as may be delegated by the Board from time to time. The Board reviews matters related to its governance and leadership structure annually. The Board has determined that the Board's governance and leadership structure is appropriate given the Trust's characteristics and circumstances. These characteristics include, but are not limited to, the Fund's status as the Trust's single portfolio of assets, the Fund's net assets, the services provided by the Trust's service providers, and the formal and informal functions of the various Trustees both during and between Board meetings.

Risk oversight forms part of the Board's general oversight of the Fund and is addressed as part of various Board and Committee activities. As part of its regular oversight of the Fund, the Board, directly or through a Committee, interacts with and reviews reports from, among others, Fund management, the Adviser, the Fund's Chief Compliance Officer, the Fund's legal counsel and the independent registered public accounting firm for the Fund regarding risks faced by the Fund. The Board, with the assistance of Fund management and the Adviser, reviews investment policies and risks in connection with its review of the Fund's performance. The Board has appointed a Chief Compliance Officer who oversees the implementation and testing of the Fund's compliance program and reports to the Board regarding compliance matters for the Fund and its principal service providers. In addition, as part of the Board's periodic review of the Fund's advisory and other service provider agreements, the Board may consider risk management aspects of these service providers' operations and the functions for which they are responsible.

**<u>Audit Committee</u>**. The Board has an Audit Committee which considers such matters pertaining to the Trust's books of account, financial records, internal accounting controls and changes in accounting principles or practices as the Trustees may from time to time determine. The Committee also considers the engagement and compensation of the independent registered public accounting firm ("Firm") and ensures receipt from the Firm of a formal written statement delineating relationships between the Firm and the Trust, consistent with Public Company Accounting Oversight Board Rule 3526. The Committee meets privately with the representatives of the Firm to review the scope and results of audits and other duties as set forth in the Committee's Charter. The Committee members, each of whom is an Independent Trustee, are currently: Mr. Deems (Chairman) and Messrs. Burke, Maxwell and Weber. The Audit Committee met two times during the fiscal year ended October 31, 2022.

**<u>Nominating and Corporate Governance Committee</u>.** The Nominating and Corporate Governance Committee advises and assists the Board in establishing, implementing and executing policies, procedures and practices that assure orderly and effective governance of the Trust and effective and efficient management of the Trust's business and financial affairs. The Committee also advises and assists the Board in selecting nominees to serve as trustees of the Trust. The Committee believes the Board generally benefits from diversity of background, experience and views among its members, and considers this a factor in evaluating the composition of the Board, but has not adopted any specific policy in this regard. The Committee members, each of whom is an Independent Trustee, are currently: Mr. Maxwell (Chairman) and Messrs. Burke, Deems and Weber. The Nominating and Corporate Governance Committee met one time during the fiscal year ended October 31, 2022.

**<u>Shareholder Nominations</u>.** The Board will, when a vacancy exists, consider shareholder nominees for appointment or election as Trustees. All nominees must possess the appropriate characteristics, skills and experience for serving on the Board. In particular, the Board and its Independent Trustees will consider each nominee's integrity, educational and professional background, understanding of the Trust's business on a technical level and commitment to devote the time and attention necessary to fulfill a Trustee's duties. All shareholders who wish to recommend nominees for consideration as Trustees shall submit the names and qualifications of the candidates to the Secretary of the Trust by writing to: Clough Funds Trust, 1290 Broadway, Suite 1000, Denver, Colorado, 80203.

**<u>Trustee Share Ownership</u>.**

As of December 31, 2022, the dollar range of equity securities in the Fund and in all registered funds in the Fund Complex overseen by each Trustee and beneficially owned by such Trustee is as follows:

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| | | |
|:---|:---|:---|
| **Trustees** | **Dollar Range of Equity** <br> **Securities in the Fund\***  | **Aggregate Dollar Range of Equity**<br> **Securities in All Registered Investment**<br> **Companies Overseen by Trustee in**<br> **Family of Investment Companies\*** |
| &nbsp;&nbsp;&nbsp;*Independent Trustees* |  |  |
| Jeremy W. Deems |  |  |
| James M. Maxwell |  |  |
| Edmund J. Burke\* |  |  |
| Clifford J. Weber | $10001 - $50000 | $10001 - $50000 |
| &nbsp;&nbsp;&nbsp;*Interested Trustees* |  |  |
| Kevin J. McNally |  | $10001- 50000 |

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\* The Fund Complex consists of the Fund, Clough Global Dividend and Income Fund, Clough Global Equity Fund, Clough Global Opportunities Fund and Clough China Fund, a series of the Financial Investors Trust. Mr. Burke is a member of the Board of each such fund. Mr. Weber and Mr. McNally are members of the Board of each such fund other than the Clough China Fund. Mr. Deems is a member of the Board of the Fund and Clough China Fund.

\* Mr. Burke became an Independent Trustee of the Trust on January 27, 2022.

As of December 31, 2022, none of the Independent Trustees or their immediate family members owned beneficially or of record any securities in the Adviser or Distributor or in a person (other than a registered investment company) directly or indirectly controlling, controlled by, or under common control with the Adviser or Distributor.

**<u>Remuneration of Trustees</u>.** 

As of the date of this SAI, each Independent Trustee or Trustee not affiliated with the Adviser or Administrator of the Trust receives (1) a quarterly retainer of $4,000, (2) $2,250 for each regular Board or Committee meeting attended, (3) $1,000 for each special telephonic Board or Committee meeting attended, (4) $2,250 for each special in-person Board meeting attended, and (5) reimbursement for all reasonable out-of-pocket expenses relating to attendance at meetings.

The following chart provides certain information about the Trustee fees paid by the Trust for the fiscal year ended October 31, 2022:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Aggregate Compensation**<br> **From the Trust** | **Pension Or Retirement**<br> **Benefits Accrued As**<br> **Part of Fund Expenses** | **Estimated**<br> **Annual Benefits**<br> **Upon Retirement** | **Aggregate Compensation From The Trust And Fund** **Complex Paid To Trustees\***  |
| Jeremy W. Deems | $26000 | $0 | $0 | $166000 |
| James M. Maxwell | $26000 | $0 | $0 | $26000 |
| Clifford J. Weber | $26000 | $0 | $0 | $74000 |
| Edmund J. Burke | $25000 | $0 | $0 | $73000 |
| Kevin McNally | N/A | N/A | N/A | N/A |

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\* The Fund Complex consists of the Fund, Clough Global Dividend and Income Fund, Clough Global Equity Fund, Clough and Global Opportunities Fund. Mr. Burke is a member of the Board of each such fund. Mr. Weber and Mr. McNally are members of the Board of each such fund. Mr. Deems is a member of the Board of the Fund.

No officer, trustee or employee of the Adviser or any of its affiliates receives any compensation from the Fund for serving as an officer or Trustee of the Fund.

**INVESTMENT MANAGER**

Clough Capital Partners L.P. (the "Adviser"), subject to the oversight of the Board, provides investment advisory services to the Fund. The Adviser is a Delaware limited partnership with principal offices at 53 State Street, 27<sup>th</sup> Floor, Boston, Massachusetts 02109. The Adviser is a registered investment adviser under the Investment Advisers Act of 1940, and provides investment services to other investment companies, private funds and separate accounts. The Adviser was founded in 2000 and, as of December 31, 2022, had investment management authority with respect to approximately $1.5 billion in assets under management.

Pursuant to the Investment Advisory Agreement (the "Advisory Agreement"), the Fund pays the Adviser an annual management fee of 1.10% based on the Fund's average daily net assets. The management fee is paid on a monthly basis. The initial term of the Advisory Agreement was two years. The Board may extend the Advisory Agreement for additional one-year terms. The Board, shareholders of the Fund or the Adviser may terminate the Advisory Agreement upon sixty (60) days' notice. A discussion regarding the basis for the Board's approval of renewal of the Fund's Advisory Agreement is provided in the Fund's semi-annual report to shareholders for the fiscal period ended April 30, 2022.

The Adviser has agreed contractually to limit the operating expenses of each class of the Fund (excluding Rule 12b-1 Distribution and Service Fees, Shareholder Services Fees, acquired fund fees and expenses, interest, taxes, brokerage costs and commissions, dividend and interest expense on short sales, litigation, indemnification and extraordinary expenses as determined under generally accepted accounting principles) to an annual rate of 1.25% through February 28, 2023. The Adviser is permitted to recover, on a class-by-class basis, any fees waived and/or expenses reimbursed under this letter agreement if such recovery does not cause total annual operating expenses to exceed the expense limitation in effect (i) at the time the expenses to be recovered were waived and/or reimbursed and (ii) at the time of such recovery. The Adviser will not be entitled to recover any such waived or reimbursed fees and expenses more than three years after the end of the fiscal year in which the fees were waived or expenses were reimbursed. The Adviser may not terminate this waiver arrangement without the approval of the Fund's Board of Trustees.

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| | | | |
|:---|:---|:---|:---|
| The table below shows the management fees for Clough Capital Partners, L.P. for the periods indicated: |  |  |  |
|  | For the Fiscal Year Ended October 31, 2022 | For the Fiscal Year Ended October 31, 2021 | For the Fiscal Year Ended October 31, 2020 |
| Gross Advisory Fees | $605987 | $844702 | $564675 |
| Waiver of Advisory Fees | ($588723) | ($555232) | ($485291 |
| Reimbursement of other Expenses | $0 | $0 | $0 |
| Net Advisory Fees | $17264 | $289740 | $79384 |

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Under the terms of the Advisory Agreement, the Adviser shall not be liable for losses or damages incurred by the Fund, unless such losses or damages are attributable to the willful misfeasance, bad faith or gross negligence on the part of the Adviser or from reckless disregard by it of its obligations and duties under the Advisory Agreement ("disabling conduct"). In addition, the Fund will indemnify the Adviser and its affiliates and hold each of them harmless against any losses or damages not resulting from disabling conduct.

**DISTRIBUTOR**

Shares of the Fund are offered on a continuous basis through the Distributor, located at 1290 Broadway, Suite 1000, Denver, Colorado 80203, as distributor pursuant to a distribution agreement between the Distributor and the Fund. The Distributor is not obligated to sell any specific amount of Fund shares.

**CODE OF ETHICS**

The Fund, the Adviser and the Distributor each have adopted a code of ethics under Rule 17j-1 of the 1940 Act. These codes of ethics permit the personnel of these entities to invest in securities, including securities that the Fund may purchase or hold. The codes of ethics are on public file with, and are available from, the SEC.

**ADMINISTRATOR**

The Fund currently employs ALPS Fund Services, Inc. ("ALPS" or the "Administrator"), located at 1290 Broadway, Suite 1000, Denver, Colorado 80203, under an administration agreement to provide certain administrative services to the Fund. Information on the services provided by the Administrator is available in the Prospectus, which is incorporated by reference in this SAI.

The table below shows the administrative fees earned by ALPS for the periods indicated:

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| | | |
|:---|:---|:---|
| For the Fiscal Year Ended October 31, 2022 | For the Fiscal Year Ended October 31, 2021 | For the Fiscal Year Ended October 31, 2020 |
| $92690 | $132336 | $88955 |

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**PROXY VOTING POLICIES AND PROCEDURES**

The Board has approved delegating proxy voting discretion to the Adviser, believing that the Adviser should be responsible for voting because it is a matter relating to the investment decision making process.

Attached as Appendix B are summaries of the guidelines and procedures that the Adviser uses to determine how to vote proxies relating to portfolio securities, including the procedures that the Adviser uses when a vote presents a conflict between the interests of Fund shareholders, on the one hand, and those of the Adviser or any affiliated person of the Fund or the Adviser, on the other. This summary of the guidelines gives a general indication as to how the Adviser will vote proxies relating to portfolio securities on each issue listed. However, the guidelines do not address all potential voting issues or the intricacies that may surround individual proxy votes. For that reason, there may be instances in which votes may vary from the guidelines presented. Notwithstanding the foregoing, the Adviser always endeavors to vote proxies relating to portfolio securities in accordance with the Fund's investment objective. When applicable, information on how the Fund voted proxies relating to portfolio securities during the most recent prior 12-month period ended June 30, will be available without charge, (i) upon request, by calling 855.425.6844 and (ii) on the SEC's website at http://www.sec.gov.

**PRINCIPAL SHAREHOLDERS**

To the best knowledge of the Trust, the names and addresses of the record and beneficial holders of 5% or more of the outstanding shares of each class of shares of the Fund and the percentage of the outstanding shares held by such holders are set forth below. To the best knowledge of the Trust, entities shown as owning more than 25% of the outstanding shares of a particular class of shares of the Fund are not the beneficial owners of such Shares, unless otherwise stated.

A shareholder who owns beneficially 25% or more of the outstanding securities of any class of shares of the Fund is presumed to "control" that class of shares of the Fund as defined in the 1940 Act. Such control may affect the voting rights of other shareholders. The following table provides the name and address of any person who owns of record or beneficially 5% or more of the outstanding shares of each class of each Fund as of January 31, 2023:

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| | | | |
|:---|:---|:---|:---|
| **Class** | **Shareholder Name/Address** | **Percentage of Interest** | **Type of Ownership** |
| Investor | UBS Financial Services, Inc.<br> Weehawken, NJ 07086 | 82.13% | Record |
| Investor | Morgan Stanley Smith Barney LLC<br> New York, NY 10004 | 10.31% | Record |
| Investor | Charles Schwab & Co., Inc.<br> San Francisco, CA 94105 | 5.50% | Record |
| A | Morgan Stanley Smith Barney LLC<br> New York, NY 10004 | 42.96% | Record |

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| | | | |
|:---|:---|:---|:---|
| A | Wells Fargo Clearing Services, LLC<br> St. Louis, MO 63103 | 40.02% | Record |
| A | Axos Clearing, LLC<br> Omaha, NE 68102 | 12.60% | Record |
| C | Morgan Stanley Smith Barney LLC<br> New York, NY 10004 | 91.96% | Record |
| I | Merrill Lynch<br> Jacksonville, FL 32246 | 34.12% | Record |
| I | LPL Financial, LLC<br> San Diego, CA 92121 | 24.21% | Record |
| I | UBS Financial Services, Inc.<br> Weehawken, NJ 07086 | 17.67% | Record |
| I | Morgan Stanley Smith Barney LLC<br> New York, NY 10004 | 17.60% | Record |
| I | RBC Capital Markets<br> Minneapolis, MN 55402 | 5.36% | Record |

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**EXPENSES**

The Fund's expenses include taxes, interest, fees and salaries of the Trustees and officers who are not trustees, officers or employees of the Fund's service contractors, SEC fees, state securities qualification fees, costs of preparing and printing prospectuses for regulatory purposes and for distribution to existing shareholders, advisory and administration fees, charges of the custodian and of the transfer and dividend disbursing agent, certain insurance premiums, outside auditing and legal expenses, costs of shareholder reports and shareholder meetings and any extraordinary expenses. The Fund also pays for brokerage fees and commissions (if any) in connection with the purchase and sale of portfolio securities.

**PORTFOLIO MANAGERS**

The following sections set forth certain additional information with respect to the portfolio managers for the Fund. Unless noted otherwise, all information is provided as of October 31, 2022.

**Other Accounts Managed by Portfolio Managers**

The table below identifies as of October 31, 2022, for the portfolio managers of the Fund, the number of accounts (other than the Fund with respect to which information is provided) for which he has day-to-day management responsibilities and the total assets in such accounts, within each of the following categories: registered investment companies, other pooled investment vehicles, and other accounts.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Portfolio Manager(s)** | **Registered** <br> **Investment**<br> **Companies** | **Registered** <br> **Investment**<br> **Companies** | **Other Pooled** <br> **Investment**<br> **Vehicles\*** | **Other Pooled** <br> **Investment**<br> **Vehicles\*** | **Other Accounts\*** | **Other Accounts\*** |
| **Portfolio Manager(s)** | **Number** | **Total Assets** <br> **(in millions)** | **Number** | **Total Assets** <br> **(in millions)** | **Number** | **Total Assets** <br> **(in millions)** |
| Charles I. Clough, Jr.<br> (Co-Portfolio Manager)  | 3 | $1033.9 | 3 | $191.3 | 1 | $272.9 |

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\* All of these accounts, representing $467.2 million in assets under management, were subject to a performance-based fee.

**Compensation.** Portfolio manager compensation consists of a fixed salary in the form of periodic partnership draws, an employee benefits package, and a bonus. The portfolio manager's bonus, which can be a significant portion of overall compensation, is determined annually by Clough Capital's compensation committee, and is based partially on individual performance and partially on firm profitability. The portfolio managers' overall compensation is designed to be competitive with asset managers of similar size and investment focus.

**Conflicts of Interest with Other Accounts**. Potential conflicts of interest may arise when the Fund's portfolio managers have day-to-day management responsibilities with respect to one or more other funds or other accounts, as is the case for certain of the portfolio managers listed in the table above.

The Adviser and the Fund have adopted compliance policies and procedures that are designed to address various conflicts of interest that may arise for the Adviser and the individuals that it employs. For example, the Adviser seeks to minimize the effects of competing interests for the time and attention of portfolio managers by assigning portfolio managers to manage funds and accounts that share a similar investment style. The Adviser has also adopted trade allocation procedures that are designed to facilitate the fair allocation of limited investment opportunities among multiple funds and accounts. There is no guarantee, however, that the policies and procedures adopted by the Adviser and the Fund will be able to detect and/or prevent every situation in which an actual or potential conflict may appear.

These potential conflicts include:

Allocation of Limited Time and Attention. A portfolio manager who is responsible for managing multiple funds and/or accounts may devote unequal time and attention to the management of those funds and/or accounts. As a result, the portfolio manager may not be able to formulate as complete a strategy or identify equally attractive investment opportunities for each of those accounts as might be the case if he or she were to devote substantially more attention to the management of a single fund. The effects of this potential conflict may be more pronounced where funds and/or accounts overseen by a particular portfolio manager have different investment strategies.

Allocation of Limited Investment Opportunities. If a portfolio manager identifies a limited investment opportunity that may be suitable for multiple funds and/or accounts, the opportunity may be allocated among these several funds or accounts, which may limit the Fund's ability to take full advantage of the investment opportunity.

Pursuit of Differing Strategies. At times, a portfolio manager may determine that an investment opportunity may be appropriate for only some of the funds and/or accounts for which he or she exercises investment responsibility, or may decide that certain of the funds and/or accounts should take differing positions with respect to a particular security. In these cases, the portfolio manager may place separate transactions for one or more funds or accounts which may affect the market price of the security or the execution of the transaction, or both, to the detriment or benefit of one or more other funds and/or accounts.

Selection of Brokers/Dealers. Portfolio managers may be able to select or influence the selection of the brokers and dealers that are used to execute securities transactions for the funds and/or account that they supervise. In addition to executing trades, some brokers and dealers provide portfolio managers with brokerage and research services (as those terms are defined in Section 28(e) of the 1934 Act), which may result in the payment of higher brokerage fees than might have otherwise been available. These services may be more beneficial to certain funds or accounts than to others. Although the payment of brokerage commissions is subject to the requirement that the portfolio manager determine in good faith that the commissions are reasonable in relation to the value of the brokerage and research services provided to the fund, a portfolio manager's decision as to the selection of brokers and dealers could yield disproportionate costs and benefits among the funds and/or accounts that he or she manages.

Variation in Compensation. A conflict of interest may arise where the financial or other benefits available to the portfolio manager differ among the funds and/or accounts that he or she manages. If the structure of the investment adviser's management fee and/or the portfolio manager's compensation differs among funds and/or accounts (such as where certain funds or accounts pay higher management fees or performance-based management fees), the portfolio manager might be motivated to help certain funds and/or accounts over others. The portfolio manager might be motivated to favor funds and/or accounts in which he or she has an interest or in which the investment adviser and/or its affiliates have interests. Similarly, the desire to maintain or raise assets under management or to enhance the portfolio manager's performance record or to derive other rewards, financial or otherwise, could influence the portfolio manager to lend preferential treatment to those funds and/or accounts that could most significantly benefit the portfolio manager.

Related Business Opportunities. The Adviser or its affiliates may provide more services (such as distribution or recordkeeping) for some types of funds or accounts than for others. In such cases, a portfolio manager may benefit, either directly or indirectly, by devoting disproportionate attention to the management of funds and/or accounts that provide greater overall returns to the Adviser and its affiliates.

**Ownership of Securities**

The table below identifies ownership of Fund securities by each Portfolio Manager as of October 31, 2022.

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| | |
|:---|:---|
| **Portfolio Manager(s)** | **Dollar Range of Ownership of Securities** |
| Charles I. Clough, Jr. | Over $1 million |

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**NET ASSET VALUE**

The following is a description of the procedures used by the Fund in valuing its assets. Because of the differences in service and distribution fees and class-specific expenses, the per share net asset value of each class may differ. For the purpose of pricing purchase and redemption orders, the net asset value per share of each class of the Fund is calculated separately and is determined once daily as of the close of regularly scheduled trading on the NYSE (normally, 4:00 p.m. Eastern time). The Fund's net asset value is calculated on each day that the NYSE is open for trading, i.e., Monday through Friday, except for New Year's Day, Martin Luther King, Jr. Day, Presidents' Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving Day and Christmas Day, and the preceding Friday or subsequent Monday when one of those holidays falls on a Saturday or Sunday, respectively.

In calculating net asset value, equity securities listed or traded on national securities exchanges are valued at the last sale price or, if there have been no sales on that day, at the mean of the current bid and ask price which represents the current value of the security. OTC securities are valued at the last reported sale price in the OTC market, or if there have been no sales on that day, at the mean of the current bid and ask price.

Portfolio securities listed on the NASDAQ National Market System for which market quotations are available are valued at the official closing price. If there is no official closing price, the securities are valued at the last sale price or, if there have been no sales that day, at the mean of the current bid and ask price which represents the current value of the security.

Securities that are primarily traded on foreign exchanges generally are valued at the preceding closing values of such securities on their respective exchanges, except that when an occurrence subsequent to the time a value was so established is likely to have changed such value, then the fair value of those securities will be determined by consideration of other factors by or under the direction of the Fund's Board or its delegates. In valuing assets, prices denominated in foreign currencies are converted to U.S. dollar equivalents at the current exchange rate. Securities may be valued by independent pricing services which use prices provided by market-makers or estimates of market values obtained from yield data relating to instruments or securities with similar characteristics. The market price for debt obligations is generally the price supplied by an independent third-party pricing service approved by the Fund's Board, which may use a matrix, formula or other objective method that takes into consideration market indices, yield curves and other specific adjustments. All other securities and other assets of the Fund will be valued at fair value as determined in good faith pursuant to procedures adopted by the Board.

**TAXES**

This section provides additional information concerning U.S. federal income taxes. It is based on the Code, applicable Treasury Regulations, judicial authority, and administrative rulings and practice, all as of the date of this SAI, and all of which are subject to change, including changes with retroactive effect. The following does not address any state, local or foreign or estate or gift tax matters.

A shareholder's U.S. federal income tax consequences from acquiring, holding and disposing of shares in the Fund may vary depending upon his or her particular situation. This discussion only applies to shareholders who are U.S. persons. For purposes of this discussion, U.S. persons are: (i) U.S. citizens or residents, (ii) U.S. corporations, (iii) an estate whose income is subject to U.S. federal income taxation regardless of its source, or (iv) a trust, if a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons have the authority to control all of its substantial decisions, or certain electing trusts that were in existence on August 20, 1996, and were treated as domestic trusts on August 19, 1996. This discussion does not address issues of significance to U.S. persons in special situations such as: (i) certain types of tax-exempt organizations, (ii) shareholders holding shares through tax-advantaged accounts (such as 401(k) plan accounts or individual retirement accounts), (iii) shareholders holding investments through foreign institutions (financial and non-financial), (iv) financial institutions, (v) broker-dealers, (vi) entities not organized under the laws of the United States or a political subdivision thereof, (vii) shareholders holding shares as part of a hedge, straddle or conversion transaction, and (viii) shareholders who are subject to the U.S. federal alternative minimum tax.

If a partnership (including for this purpose any entity treated as a partnership for U.S. federal income tax purposes) is a beneficial owner of shares, the tax treatment of a partner in the partnership will generally depend upon the status of the partner and the activities of the partnership. Partners of partnerships that are considering the purchase of shares should consult their own tax advisers regarding the U.S. federal income tax consequences of the purchase, ownership and disposition of shares.

The Fund has not requested and will not request an advance ruling from the Internal Revenue Service (the "IRS") as to the U.S. federal income tax matters described below. The IRS could adopt positions contrary to those discussed below and such positions could be sustained. In addition, the foregoing discussion only addresses some of the U.S. federal income tax considerations generally affecting investments in the Fund. Prospective shareholders are urged to consult with their own tax advisers as to the particular U.S. federal tax consequences to them of an investment in the Fund, as well as the applicability and effect of any state, local or foreign laws, and the effect of possible changes in applicable tax laws.

**General Policies**

In general, it is the Fund's policy to distribute to its shareholders as "ordinary income dividends" substantially all net investment income and short-term capital gains. It is also the Fund's policy to distribute annually all net realized long-term capital gains, if any, after offsetting any capital loss carryovers as "capital gains dividends."

Ordinary income dividends and capital gain distributions are payable in full and fractional shares of the relevant class of the Fund based upon the net asset value determined as of the close of the Exchange on the record date for each dividend or distribution. Shareholders, however, may elect to receive their ordinary income dividends or capital gain distributions, or both, in cash. The election may be made at any time by submitting a written request directly to the applicable Fund. In order for a change to be in effect for any dividend or distribution, it must be received by the Fund on or before the record date for such dividend or distribution.

If you elect to receive your dividends in cash and the dividend checks sent to you are returned "undeliverable" to the applicable Fund or remain uncashed for six months, your cash election will automatically be changed and your future dividends will be reinvested. No interest will accrue on amounts represented by uncashed dividend or redemption checks.

As required by federal law, detailed U.S. federal tax information will be furnished to each shareholder for each calendar year.

**Taxation of the Fund**

The Fund has elected to be treated and intends to qualify each year as a regulated investment company under Subchapter M of the Code. In order to qualify for the special tax treatment accorded regulated investment companies and their shareholders, the Fund must, among other things: (i) derive at least 90% of its gross income in each taxable year from dividends, interest, payments with respect to certain securities loans, gains from the sale or other disposition of stock, securities or foreign currencies, or other income (including, but not limited to, gains from options, futures or forward contracts) derived with respect to its business of investing in such stock, securities or currencies and net income derived from interests in "qualified publicly traded partnerships;" (ii) diversify its holdings so that at the end of each fiscal quarter, (a) at least 50% of the value of its total assets consists of cash and cash items (including receivables), U.S. government securities, securities of other regulated investment companies, and other securities limited generally, with respect to any one issuer, to no more than 5% of the value of the Fund's total assets and 10% of the outstanding voting securities of such issuer, and (b) not more than 25% of the value of the Fund's total assets is invested in (1) the securities (other than those of the U.S. government or other regulated investment companies) of any one issuer, (2) the securities (other than the securities of other regulated investment companies) of two or more issuers which the Fund controls and which are engaged in the same, similar or related trades or businesses, or (3) in the securities of one or more qualified publicly traded partnerships; and (iii) distribute with respect to each taxable year an amount equal to or exceeding the sum of (a) 90% of its "investment company taxable income," as that term is defined in the Code (which generally includes, among other things, dividends, taxable interest, and the excess of any net short-term capital gains over net long-term capital losses, as reduced by certain deductible expenses) without regard to the deduction for dividends paid, and (b) 90% of its tax-exempt interest income, net of expenses allocable thereto. For purposes of meeting the diversification requirement described in (ii) above, in the case of the Fund's investment in loan participations, the issuer may be the financial intermediary or the borrower.

With respect to (i) above, the IRS may limit qualifying income from foreign currency gains to the amount of such currency gains that are directly related to a regulated investment company's principal business of investing in stock or securities pursuant to regulations that may be promulgated in the future. For purposes of the 90% gross income requirement described in (i) above, income derived from a partnership will generally be treated as qualifying income only to the extent such income is attributable to items of income of the partnership which would be qualifying income if realized by the regulated investment company. However, 100% of the net income derived from an interest in a qualified publicly traded partnership (defined as a partnership (x) interests in which are traded on an established securities market or readily tradable on a secondary market or the substantial equivalent thereof and (y) that meets certain qualifying income requirements and derives less than 90% of its income from the qualifying income described in (i) above) will be treated as qualifying income. In addition, although in general the passive loss rules of the Code do not apply to regulated investment companies, such rules do apply to a regulated investment company with respect to items attributable to an interest in a qualified publicly traded partnership. Finally, for purposes of (ii)(a) above, the term "outstanding voting securities of such issuer" will include the equity securities of a qualified publicly traded partnership.

To the extent that it qualifies for treatment as a regulated investment company, the Fund will not be subject to U.S. federal income tax on income distributed to its shareholders in a timely manner in the form of dividends (including capital gain dividends, defined below). In certain situations, the Fund can cure failures to meet the income and diversification tests described above, including, in some cases, by paying the Fund-level tax and, in the case of diversification failures, disposing of certain assets. If the Fund were to fail to qualify as a regulated investment company accorded special tax treatment in any taxable year – for example, because it was not sufficiently diversified under the applicable Code tests – the Fund would be subject to tax on its taxable income at corporate rates, and all distributions from earnings and profits, including any distributions of net tax-exempt income and net long-term capital gains, would be taxable to shareholders as ordinary income. To qualify again to be taxed as a regulated investment company that is accorded special treatment in a subsequent year, the Fund could be required to pay substantial taxes, penalties and interest and make substantial distributions. In addition, if the Fund fails to qualify as a regulated investment company for a period greater than two taxable years, such the Fund may be required to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if the effected Fund had been liquidated) or, alternatively, to be subject to taxation on such built-in gain recognized for a period of ten years, in order to qualify as a regulated investment company in a subsequent year.

As a regulated investment company, the Fund generally will not be subject to U.S. federal income tax on its net capital gains (that, is any net long-term capital gains in excess of the sum of net short-term capital losses and certain capital loss carryovers from prior years) distributed and properly reported by the Fund in a written statement to shareholders as capital gain dividends ("capital gain dividends") and its investment company taxable income if any, that the Fund distributes to shareholders on a timely basis. The Fund intends to distribute substantially all of its investment company taxable income and to distribute all of its capital gains dividends in a taxable year. If the Fund does retain any investment company taxable income, it will be subject to tax at regular corporate rates on the amount retained. However, the Fund may elect to have certain dividends paid after the close of a tax year treated as having been paid during the tax year for purposes of the regulated investment company distribution requirements and for purposes of determining its taxable income ("spill-over dividends"). Spill-over dividends are taxed to shareholders in the year in which they are received.

If the Fund retains any net capital gain, it will also be subject to tax at regular corporate rates on the amount retained, but may designate the retained amount as undistributed capital gains in a notice to its shareholders who (i) will be required to include in income for U.S. federal income tax purposes, as long-term capital gain, their shares of such undistributed amount, and (ii) will be entitled to credit their proportionate shares of the tax paid by such the Fund on such undistributed amount against their U.S. federal income tax liabilities, if any. For U.S. federal income tax purposes, the tax basis of shares owned by a shareholder of such the Fund will be increased by an amount equal to the difference between the amount of undistributed capital gains included in the shareholder's income and the tax deemed paid by the shareholder under clause (ii) of the preceding sentence.

Generally, the excess (if any) of the Fund's net short-term capital loss over the net long-term capital gain for a taxable year will carry over as a short-term capital loss arising on the first day of the next tax year. In addition, the excess (if any) of the Fund's net long-term capital loss over the net short-term capital gain for the year will carry over as a long-term capital loss arising on the first day of the next tax year.

A regulated investment company may elect to treat any post-October capital loss (defined as the greatest of net capital loss, net long-term capital loss, or net short-term capital loss, in each case attributable to the portion of the taxable year after October 31) and late-year ordinary loss (generally, (i) net ordinary losses from the sale, exchange or other taxable disposition of property, attributable to the portion of the taxable year after October 31, plus (ii) other net ordinary losses attributable to the portion of the taxable year after December 31) as if incurred in the succeeding taxable year.

If the Fund fails to distribute in a calendar year at least an amount equal to the sum of 98% of its ordinary income for such year and 98.2% of its net capital gain income for the one year period ending on October 31 of such year, plus any retained amount for the prior year, such the Fund will be subject to a non-deductible 4% excise tax on the undistributed amounts. For these purposes, ordinary gains and losses from the sale, exchange or other taxable disposition of property that would be properly taken into account after October 31 are treated as arising on January 1 of the following calendar year. For purposes of the excise tax, the Fund will be treated as having distributed any amount on which it has been subject to corporate income tax in the taxable year ending within the calendar year. A dividend paid to shareholders in January of a year generally is deemed to have been paid on December 31 of the preceding year, if the dividend is declared and payable to the shareholders of record on a date in October, November or December of that preceding year.

The Fund intends to make distributions sufficient to avoid imposition of the excise tax, although there can be no assurance that it will be able to do so.

**Taxation of Fund Distributions**

For U.S. federal income tax purposes, distributions of investment company taxable income are generally taxable as ordinary income to the extent of the Fund's current or accumulated "earnings and profits." Taxes on distributions of capital gains are determined by how long the Fund owned the investments that generated them, rather than how long a shareholder has owned his or her shares. Distributions of net capital gains from the sale of investments that the Fund owned for more than one year and that are properly designated by the Fund as capital gain dividends (i.e., "capital gain dividends") will be taxable to Fund shareholders as long-term capital gains. Generally, distributions of gains from the sale of investments that the Fund owned for one year or less will be taxable as ordinary income. The Fund may designate certain dividends as derived from "qualified dividend income," which, when received by an individual or other non-corporate shareholder, will be taxed at the rates applicable to long-term capital gain. Dividend income distributed to individual or other non-corporate shareholders will qualify as "qualified dividend income" as that term is defined in section 1(h)(11)(B) of the Code to the extent such distributions are attributable to income from the Fund's investments in common and preferred stock of U.S. companies and stock of certain qualified foreign corporations, provided that certain holding period and other requirements are met by both the Fund and its shareholders. Distributions are taxable to shareholders even if they are paid from income or gains earned by the Fund before a shareholder invested in the Fund (and thus were included in the price the shareholder paid). Distributions are taxable whether shareholders receive them in cash or reinvest them in additional shares (other than distributions, if any, designated by the Fund as "exempt-interest dividends," a designation which the Fund generally do not expect to make). Any gain resulting from the sale or exchange of Fund shares generally will be taxable as capital gains. Distributions declared and payable by the Fund during October, November or December to shareholders of record on a date in any such month and paid by the Fund during the following January will be treated for U.S. federal tax purposes as paid by the Fund and received by shareholders on December 31st of the year in which declared rather than the calendar year in which they were received.

The maximum long-term capital gain rate applicable to individuals is 20%.

Dividends received by corporate shareholders that are reported by the Fund in a written statement furnished to shareholders may qualify for the 50% dividends received deduction to the extent of the amount of qualifying dividends received by the Fund from domestic corporations and to the extent a portion of interest paid or accrued on certain high yield discount obligations owned by the Fund are treated as dividends.

If the Fund makes a distribution in excess of its current and accumulated "earnings and profits" in any taxable year, the excess distribution will be treated as a return of capital to the extent of a shareholder's tax basis in his or her shares, and thereafter as capital gain. A return of capital is not taxable, but it reduces a shareholder's basis in his or her shares, thus reducing any loss or increasing any gain on a subsequent taxable disposition by the shareholder of such shares.

Effective for taxable years beginning after December 31, 2017 and before January 1, 2026, the Code generally allows individuals and certain non-corporate entities a deduction for 20% of qualified REIT dividends. Regulations allow a regulated investment company such as the Fund to pass the character of its qualified REIT dividends through to its shareholders provided certain holding period requirements are met. As a result, eligible shareholders in the Fund may receive the benefit of the deduction with respect to qualified REIT dividends received by the Fund that are distributed to shareholders.

**Sale or Redemption of Shares**

The sale or redemption of Fund shares may give rise to a gain or loss. In general, any gain or loss realized upon a taxable disposition of Fund shares will be treated as long-term capital gain or loss if the shares have been held for more than one year. Otherwise, the gain or loss on the taxable disposition of Fund shares will be treated as short-term capital gain or loss. However, any loss realized upon a taxable disposition of shares held for six months or less will be treated as long-term, rather than short-term, to the extent of any long-term capital gain distributions received (or deemed received) by the shareholder with respect to the shares. All or a portion of any loss realized upon a taxable disposition of Fund shares will be disallowed if other substantially identical shares of the Fund are purchased within 30 days before or after the disposition. In such a case, the basis of the newly purchased shares will be adjusted to reflect the disallowed loss.

**Special Tax Considerations**

The following discussion relates to the particular U.S. federal income tax consequences of the investment policies of the Fund.

*Passive Foreign Investment Companies*

The Fund may invest in non-U.S. securities may own shares in certain foreign investment entities, referred to as "passive foreign investment companies" ("PFICs"). In order to avoid U.S. federal income tax and an additional charge on a portion of any "excess distribution" from PFICs or gain from the disposition of PFIC shares, the Fund may elect to "mark-to-market" annually its investments in such entities, which will result in the Fund being treated as if it had sold and repurchased all the PFIC stock at the end of each year. As a result of the mark-to-market election, an electing Fund would report any such gains as ordinary income and would deduct such losses as ordinary losses to the extent of previously recognized gains. By making the mark-to-market election, the Fund could potentially mitigate the adverse tax consequences with respect to its ownership of shares in a PFIC, but in any particular year it may be required to recognize income in excess of the distributions it receives from PFICs and its proceeds from dispositions of PFIC stock. The Fund may have to distribute this "phantom" income and gain to satisfy the distribution requirement and to avoid imposition of the excise tax described above. Alternatively, the Fund may elect to treat the PFIC as a "qualified electing fund" (a "QEF election"), in which case the Fund would be required to include its share of the company's income and net capital gains annually, regardless of whether it receives distributions from the PFIC. As with the mark-to-market election, these amounts would be taken into account by an electing Fund for purposes of satisfying the distribution requirement and the excise tax distribution requirement. In order to make a QEF election, the Fund would be required to obtain certain annual information from the PFICs in which it invests, which may be difficult or impossible to obtain. Income from investments in PFICs generally will not qualify for treatment as qualified dividend income.

*Non-U.S. Taxes*

To the extent the Fund invests in non-U.S. securities it may be liable to non-U.S. governments for taxes relating primarily to investment income or capital gains on non-U.S. securities in the Fund's portfolio. If at the close of its taxable year more than 50% of the value of the Fund's total assets consists of securities of foreign corporations (including foreign governments), the Fund may make an election under the Code that would allow Fund shareholders who are U.S. persons or U.S. corporations to claim a foreign tax credit or deduction (but not both) on their U.S. income tax return for their pro rata portion of qualified taxes paid by the Fund to non-U.S. countries in respect of non-U.S. securities held at least a minimum period as specified in the Code. If the Fund makes the election, the amount of each shareholder's distribution reported on the information returns filed by the Fund with the IRS must be increased by the amount of the shareholder's portion of the Fund's foreign tax paid. A shareholder's ability to claim all or a part of a foreign tax credit or deduction in respect of non-U.S. taxes paid by the Fund may be subject to certain limitations imposed by the Code.

If the Fund were to qualify as a "qualified fund of funds," the Fund could be entitled to elect to pass-through its foreign tax credits without regard to the above described 50% requirement. For this purpose, the term "qualified fund of funds" means a regulated investment company if (at the close of each quarter of the taxable year) at least 50% of the value of its total assets is represented by interests in other regulated investment companies. The Fund makes no assurances as to either the availability of any election discussed in this section or its willingness to make any such election.

*Non-U.S. Currency Transactions*

Transactions in non-U.S. currencies, non-U.S.-currency denominated debt obligations and certain non-U.S. currency options, future contracts, and forward contracts (and similar instruments) may give rise to ordinary income or loss to the extent such income or loss results from fluctuations in the value of the non-U.S. currency concerned and may increase the amount and affect the timing and character of taxes payable by shareholders. Certain of the Fund's transactions, if any, in foreign currencies and foreign currency denominated instruments are likely to result in a difference between the Fund's book income and taxable income. This difference may cause a portion of the Fund's income distributions to constitute a return of capital or capital gain for tax purposes or require the Fund to make distributions exceeding book income to avoid excise tax liability and to qualify as a regulated investment company, which may have the effect of accelerating taxable distributions to shareholders of the Fund.

*Financial Products*

The Fund's investments in options, futures contracts, hedging transactions, forward contracts, swaps and certain other transactions will be subject to special tax rules (including mark-to-market, constructive sale, straddle, wash sale, short sale and other rules), the effect of which may be to accelerate income recognized by the Fund, defer the Fund's losses, cause adjustments in the holding periods of the Fund's securities, convert capital gain into ordinary income and convert short-term capital losses into long-term capital losses. These rules could therefore affect the amount, timing and character of distributions to Fund shareholders.

Some of the Fund's investments, such as certain option transactions as well as futures transactions in foreign currency contracts that are traded in the interbank market, may be "section 1256 contracts." Gains and losses on section 1256 contracts are generally treated as 60% long-term capital and 40% short-term capital, although certain foreign currency gains and losses from such contracts may be treated as entirely ordinary in character. Section 1256 contracts held by the Fund at the end of a taxable year are "marked to market" for income tax purposes, meaning that unrealized gains or losses are treated as though they were realized (and treated on the 60/40 basis described above).

Certain positions undertaken by the Fund may constitute "straddles" for U.S. federal income tax purposes. The straddle rules may affect the character of gains or losses realized by the Fund. Losses realized by the Fund that are part of a straddle may be deferred beyond the point in time that they are realized. The straddle rules, if applicable, could increase the amount of short-term capital gain realized by the Fund, which is taxed as ordinary income when distributed to shareholders. Certain tax elections that the Fund may make with respect to straddles could affect the character and timing of recognition of gains and losses.

Rules governing the tax aspects of notional principal contracts in which the Fund may invest are not clear in various respects. As a result, the IRS could challenge the Fund's methods of accounting for U.S. federal income tax purposes for such contracts, and such a challenge could affect the status of the Fund as a regulated investment company.

The Fund may make short sales of securities. Short sales may increase the amount of short-term capital gains realized by the Fund, which is taxed as ordinary income to the shareholders when distributed. Short sales may also constitute "constructive sales," which would result in taxable income before the short-sale positions are terminated.

Certain of the Fund's hedging activities including its transactions in options, futures contracts and foreign currencies, are likely to result in a difference between the Fund's book income and taxable income. This difference may cause a portion of the Fund's income distributions to constitute a return of capital or capital gain for tax purposes or require the Fund to make distributions exceeding book income to avoid excise tax liability and to qualify as a regulated investment company, which may have the effect of accelerating taxable distributions to shareholders.

*Securities Issued or Purchased at a Discount*

The Fund's investment in securities issued at a discount and certain other obligations will (and investments in securities purchased at a discount may) require the Fund to accrue and distribute income not yet received. In addition, payment-in-kind securities will give rise to income which is required to be distributed even though the Fund does not receive an interest payment in cash on the security during the year. In order to generate sufficient cash to make the requisite distributions, the Fund may be required to sell securities in its portfolio that it otherwise would have continued to hold. The Fund may realize gains or losses from such sales. In the event the Fund realizes net capital gains from such transactions, its shareholders may receive a larger capital gain distribution than they would in the absence of such transactions.

Some debt obligations that are acquired by the Fund in the secondary market may be treated as having market discount. Generally, any gain recognized on the disposition of a debt security having market discount is treated as ordinary income to the extent the gain does not exceed the "accrued market discount" on such debt security. Market discount generally accrues in equal daily installments. The Fund may make certain elections applicable to debt obligations having market discount, which could affect the character and timing of recognition of income for U.S. federal income tax purposes. Changes to the tax law enacted at the end of 2017 may accelerate the timing of recognition of income with respect to market discount.

*Tax-Exempt Shareholders*

Under current law, the Fund serves to "block" (that is, prevent the attribution to shareholders of) unrelated business taxable income ("UBTI") from being realized by its tax-exempt shareholders. Notwithstanding the foregoing, a tax-exempt shareholder could realize UBTI by virtue of its investment in the Fund if either: (1) the Fund invests in REITs that hold residual interests in real estate mortgage investment conduits ("REMICs"); or (2) shares in the Fund constitute debt-financed property in the hands of the tax-exempt shareholder within the meaning of section 514(b) of the Code. If a charitable remainder trust (as defined in section 664 of the Code) realizes any UBTI for a taxable year, it will be subject to an excise tax equal to 100% of such income. The Fund may invest in REITs that hold residual interests in REMICs.

**Backup Withholding**

The Fund generally is required to withhold and remit to the U.S. Treasury a percentage of the taxable distributions and redemption proceeds paid to any non-corporate shareholder who fails to properly furnish the Fund with a correct taxpayer identification number ("TIN") or who has under-reported dividend or interest income, and to any shareholder that fails to certify to the Fund that it is not subject to such withholding. The backup withholding tax rate is 24%.

Backup withholding is not an additional tax. Amounts withheld under the backup withholding rules from a payment to a shareholder generally may be refunded or credited against the shareholder federal income tax liability, if any, provided that certain required information is timely furnished to the Internal Revenue Service.

You should consult with your tax adviser regarding the U.S. federal, foreign, state and local tax consequences of an investment in the Fund.

**Surtax on Net Investment Income**

A surtax of 3.8% applies to net investment income of an individual taxpayer and to the undistributed net investment income of certain estates and trusts, in each case in excess of a threshold amount. Net investment income includes interest, dividends, royalties, rents, gross income from a trade or business involving passive activities, and net gain from disposition of property (other than property held in a non-passive trade or business). Net investment income includes ordinary income and capital gain distributions received with respect to shares of the Fund and net gains from redemptions or other taxable dispositions of Fund shares. Net investment income is reduced by deductions properly allocable to such income. Holders of our common stock should consult their tax advisors regarding the effect, if any, of this legislation on their ownership and disposition of our common stock.

**Foreign Accounts**

The Foreign Account Tax Compliance Act ("FATCA") will impose a 30% withholding tax on dividends received from the Fund on: (i) foreign financial institutions (as defined in section 1471 of the Code) unless they agree to collect and disclose to the IRS, or a governmental authority in their own country, information regarding direct and indirect U.S. account holders or otherwise demonstrate compliance with or exemption from FATCA; and (ii) certain other foreign entities unless they certify certain information regarding their direct and indirect U.S. owners or otherwise demonstrate compliance with or exemption from FATCA. Such an agreement may require, among other things, that the entity undertake to identify accounts held by certain U.S. persons or U.S.-owned foreign entities, annually report certain information about such accounts, and withhold 30% on payments to account holders whose actions prevent it from complying with these reporting and other requirements. In certain circumstances, an account holder may be eligible for refunds or credits of such withheld taxes. The Fund will not pay any additional amounts to a shareholder with respect to any amounts withheld under such legislation.

Under current administrative guidance, the withholding obligations described above currently apply to payments of dividends on shares. The application of this withholding tax and to capital gains distributions and payments of gross proceeds from a sale or other disposition of shares (including redemptions) that was scheduled to go into effect on January 1, 2019 would be eliminated by proposed regulations that are effective while pending.

**Other Tax Matters**

Special tax rules apply to investments through defined contribution plans and other tax-qualified plans. Shareholders should consult their tax advisor to determine the suitability of shares of the Fund as an investment through such plans and the precise effect of an investment in the Fund would have on their particular tax situation.

The foregoing discussion relates solely to U.S. federal income tax law. Dividends and distributions also may be subject to state and local taxes. Shareholders are urged to consult their tax advisors regarding specific questions as to U.S. federal, state, local and, where applicable, foreign taxes. Foreign investors should consult their tax advisers concerning the U.S. federal income tax consequences of ownership of shares of the Fund, including the certification and filing requirements imposed on foreign investors in order to qualify for exemption from the backup withholding tax rates (or a reduced rate of withholding provided by treaty).

The foregoing is a general and abbreviated summary of the applicable provisions of the Code and related regulations currently in effect. For the complete provisions, reference should be made to the pertinent Code sections and regulations. The Code and regulations are subject to change by legislative or administrative actions.

**DESCRIPTION OF THE TRUST**

The Trust was organized as a Delaware statutory trust on March 17, 2015 and consists of one portfolio or series. The Board may establish additional series in the future. The capitalization of the Trust consists solely of an unlimited number of shares of beneficial interest with no par value.

If the Board were to establish multiple separate portfolios or funds and certain matters arose that affected one fund but not another, only the shareholders of the affected fund would vote regarding such matters. If required by the 1940 Act, shares of each fund would vote together in the aggregate. For example, a change in a fund's fundamental investment policies would be voted upon only by shareholders of the affected fund, whereas shareholders of all funds would vote together for the election of Trustees. Approval of an investment advisory agreement is a matter to be determined separately by a fund.

Approval by the shareholders of one fund is effective as to that fund whether or not sufficient votes are received from the shareholders of the other fund to approve the proposal as to that fund. The term "majority," when referring to approvals to be obtained from shareholders of a fund means the vote of the lesser of (i) 67% of the shares of the fund or class represented at a meeting if the holder of more than 50% of the outstanding shares of the fund or class present in person or by proxy, or (ii) more than 50% of the outstanding shares of the fund. The term "majority," when referring to the approvals to be obtained from shareholders of the Trust as a whole means the vote of the lesser of (i) 67% of the Trust's shares represented at a meeting if the holders of more than 50% of the Trust's outstanding shares are present in person or proxy, or (ii) more than 50% of the Trust's outstanding shares. Shareholders are entitled to one vote for each full share held and fractional votes for fractional shares held.

The Trust is not required to hold regular annual meetings of a fund's shareholders and does not intend to do so. However, the Trust undertakes to hold a special meeting of its shareholders if the purpose of voting on the question of removal of a director or trustees is requested in writing by the holders of at least 10% of the Trust's outstanding voting securities, and to assist in communicating with other shareholders as required by Section 16(c) of the 1940 Act. The Trust Instrument provides that the holders of not less than two-thirds of the outstanding shares of the Trust may remove a person serving as Trustee either by declaration in writing or at a meeting called for such purpose.

Each share of the Fund represents an equal proportional interest in the Fund with each other share and is entitled to such dividends and distributions out of the income earned on the assets belonging to the fund as are declared in the discretion of the Trustees. In the event of the liquidation or dissolution of the Trust, shareholders of each fund are entitled to receive the assets attributable to the Fund that are available for distribution, and a distribution of any general assets of the Trust not attributable to a particular fund that are available for distribution in such manner and on such basis as the Trustees in their sole discretion may determine.

Shareholders are not entitled to any preemptive rights. All shares, when issued, will be fully paid and non-assessable by the Trust.

Under Delaware law, shareholders could, under certain circumstances, be held personally liable for the obligations of a series of the Trust but only to the extent of the shareholder's investment in such series. However, the Trust Instrument disclaims liability of the shareholders, Trustees or Officers of the Trust for acts or obligations of the Trust, which are binding only on the assets and property of each series of the Trust and requires that notice of the disclaimer be given in each contract or obligations entered into or executed by the Trust or the Trustees. The risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which the Trust itself would be unable to meet its obligations and should be considered remote and is limited to the amount of the shareholder's investment in the Fund.

**OTHER INFORMATION ABOUT THE FUND**

*Custodian.* State Street Bank and Trust Company (the "Custodian"), located at 225 Franklin Street, Boston, Massachusetts, 02110, serves as Custodian for the Fund. As such, the Custodian holds in safekeeping certificated securities and cash belonging to the Fund and, in such capacity, is the registered owner of securities in book-entry form belonging to the Fund. Upon instruction, the Custodian receives and delivers cash and securities of the Fund in connection with portfolio transactions and collects all dividends and other distributions made with respect to portfolio securities. The Custodian also maintains certain accounts and records of the Fund.

*Transfer Agent.* ALPS Fund Services, Inc. ("ALPS"), pursuant to a Transfer Agency and Service Agreement, serves as transfer agent for the Fund. As Transfer Agent, ALPS has, among other things, agreed to (i) issue and redeem shares of the Fund; (ii) make dividend and other distributions to shareholders of the Fund; (iii) effect transfers of shares; (iv) mail communications to shareholders of the Fund, including account statements, confirmations, and dividend and distribution notices; (v) facilitate the electronic delivery of shareholder statements and reports and (vi) maintain shareholder accounts. Under the Transfer Agency and Service Agreement, ALPS receives from the Trust an annual minimum fee and a fee based upon the number of shareholder accounts and is also reimbursed for out-of-pocket expenses. As described above, ALPS is an affiliate of the Distributor.

*Independent Registered Public Accounting Firm.* Ernst & Young, LLP ("E&Y") serves as the Trust's independent registered public accounting firm. E&Y is located at 200 Clarendon Street, Boston, Massachusetts 02116.

*Counsel.* Morrison & Foerster LLP serves as counsel to the Fund and the Independent Trustees, and is located at 250 West 55<sup>th</sup> Street, New York, New York 10019.

**PERFORMANCE INFORMATION**

*Yield and Total Return.* The Fund may from time to time include the yield and/or total return of its shares in advertisements or information in advertisements or information furnished to present or prospective shareholders.

The Fund's yield will vary from time to time depending upon market conditions, the composition of its portfolios and operating expenses of the Trust allocated to the Fund. These factors, possible differences in the methods used in calculating yield, and the tax exempt status of distributions, should be considered when comparing the Fund's yield to yields published for other investment companies and other investment vehicles. Yield should also be considered relative to changes in the value of the Fund's shares and to the relative risks associated with the investment objectives and policies of the Fund.

At any time in the future, yields and total return may be higher or lower than past yields and there can be no assurance that any historical results will continue.

Investors in the Fund are specifically advised that share prices, expressed as the net asset value per share, will vary just as yield will vary. An investor's focus on the yield of the Fund to the exclusion of the consideration of the share price of that Fund may result in the investor's misunderstanding the total return he or she may derive from the Fund.

**FINANCIAL STATEMENTS** 

The financial statements and financial highlights in the October 31, 2022 Annual Report (the "Annual Report") of the Fund are incorporated in this SAI by reference. The financial statements and financial highlights in the Annual Report have been audited by Ernst & Young LLP, whose report thereon appears in the Annual Report. You can obtain additional copies of such Annual Report at no charge by writing or telephoning the Fund at the address or toll-free number on the front page of this SAI.

**APPENDIX A**

 **DESCRIPTION OF SECURITIES RATINGS**

The Fund may make use of average portfolio credit quality standards to assist institutional investors whose own investment guidelines limit their investments accordingly. In determining the Fund's overall dollar-weighted average quality, unrated securities are treated as if rated, based on the adviser's view of their comparability to rated securities. The Fund's use of average quality criteria is intended to be a guide for those investors whose investment guidelines require that assets be invested according to comparable criteria. Reference to an overall average quality rating for the Fund does not mean that all securities held by the Fund will be rated in that category or higher. The Fund's investments may range in quality from securities rated in the lowest category in which the Fund is permitted to invest to securities rated in the highest category (as rated by Moody' s, S&P or Fitch or, if unrated, determined by the adviser to be of comparable quality). The percentage of the Fund's assets invested in securities in a particular rating category will vary. Following is a description of Moody's, S&P's and Fitch's ratings applicable to fixed-income securities.

**Moody's Investors Service, Inc.**

**Corporate and Municipal Bond Ratings**

Aaa: Bonds which are rated Aaa are judged to be of the best quality. They carry the smallest degree of investment risk and are generally referred to as "gilt edge." Interest payments are protected by a large or by an exceptionally stable margin and principal is secure. While the various protective elements are likely to change, such changes as can be visualized are most unlikely to impair the fundamentally strong position of such issues.

Aa: Bonds which are rated Aa are judged to be of high quality by all standards. Together with the Aaa group they comprise what are generally known as high-grade bonds. They are rated lower than the best bonds because margins of protection may not be as large as in Aaa securities or fluctuation of protective elements may be of greater amplitude or there may be other elements present that make the long-term risks appear somewhat larger than with Aaa securities.

A: Bonds which are rated A possess many favorable investment attributes and are to be considered as upper-medium-grade obligations. Factors giving security to principal and interest are considered adequate, but elements may be present that suggest a susceptibility to impairment sometime in the future.

Baa: Bonds which are rated Baa are considered as medium-grade obligations (i.e., they are neither highly protected nor poorly secured), interest payments and principal security appear adequate for the present but certain protective elements may be lacking or may be characteristically unreliable over any great length of time. Such bonds lack outstanding investment characteristics and in fact have speculative characteristics as well.

Ba: Bonds which are rated Ba are judged to have speculative elements; their future cannot be considered as well-assured. Often the protection of interest and principal payments may be very moderate and thereby not well safeguarded during both good and bad times over the future. Uncertainty of position characterizes bonds in this class.

B: Bonds which are rated B generally lack characteristics of a desirable investment. Assurance of interest and principal payments or of maintenance of other terms of the contract over any long period of time may be small.

Caa: Bonds which are rated Caa are of poor standing. Such issues may be in default or there may be present elements of danger with respect to principal or interest.

Ca: Bonds which are rated Ca represent obligations which are speculative in a high degree. Such issues are often in default or have other marked shortcomings.

C: Bonds which are rated C are the lowest rated class of bonds and issues so rated can be regarded as having extremely poor prospects of ever attaining any real investment standing.

Moody's bond ratings, where specified, are applicable to financial contracts, senior bank obligations and insurance company senior policyholder and claims obligations with an original maturity in excess of one year. Obligations relying upon support mechanisms such as letter-of-credit and bonds of indemnity are excluded unless explicitly rated. Obligations of a branch of a bank are considered to be domiciled in the country in which the branch is located.

Unless noted as an exception, Moody's rating on a bank's ability to repay senior obligations extends only to branches located in countries which carry a Moody's Sovereign Rating for Bank Deposits. Such branch obligations are rated at the lower of the bank's rating or Moody's Sovereign Rating for the Bank Deposits for the country in which the branch is located. When the currency in which an obligation is denominated is not the same as the currency of the country in which the obligation is domiciled, Moody's ratings do not incorporate an opinion as to whether payment of the obligation will be affected by the actions of the government controlling the currency of denomination. In addition, risk associated with bilateral conflicts between an investor's home country and cither the issuer's home country or the country where an issuer branch is located are not incorporated into Moody's ratings.

Moody's makes no representation that rated bank obligations or insurance company obligations are exempt from registration under the Securities Act or issued in conformity with any other applicable law or regulation. Nor does Moody's represent that any specific bank or insurance company obligation is legally enforceable or a valid senior obligation of a rated issuer.

Moody's applies numerical modifiers, 1,2, and 3 in each generic rating classified from Aa through Caa in its corporate bond rating system. The modifier 1 indicates that the security ranks in the higher end of its generic rating category; the modifier 2 indicates a mid-range ranking; and the modifier 3 indicates that the issue ranks in the lower end of its generic rating category.

**Corporate Short-Term Debt Ratings**

Moody's short-term debt ratings are opinions of the ability of issuers to repay punctually senior debt obligations. These obligations have an original maturity not exceeding one year, unless explicitly noted.

Moody's employs the following three designations, all judged to be investment-grade, to indicate the relative repayment ability of rated issuers:

PRIME-1: Issuers rated Prime-1 (or supporting institutions) have a superior ability for repayment of senior short-term debt obligations. Prime-1 repayment ability will often be evidenced by many of the following characteristics: leading market positions in well-established industries; high rates of return on funds employed: conservative capitalization structure with moderate reliance on debt and ample asset protection; broad margins in earnings coverage of fixed financial charges and high internal cash generation; and well-established access to a range of financial markets and assured sources of alternate liquidity.

PRIME-2: Issuers rated Prime-2 (or supporting institutions) have a strong ability for repayment of senior short-term debt obligations. This will normally be evidenced by many of the characteristics cited above but to a lesser degree. Earnings trends and coverage ratios, while sound, may be more subject to variation. Capitalization characteristics, while still appropriate, may be more affected by external conditions. Ample alternate liquidity is maintained.

PRIME-3: Issuers rated Prime-3 (or supporting institutions) have an acceptable ability for repayment of senior short-term obligations. The effect of industry characteristics and market compositions may be more pronounced. Variability in earnings and profitability may result in changes in the level of debt protection measurements and may require relatively high financial leverage. Adequate alternate liquidity is maintained.

NOT PRIME: Issuers rated Not Prime do not fall within any of the Prime rating categories.

**Standard & Poor's Ratings Services**

**Issue Credit Rating Definitions**

A Standard & Poor's issue credit rating is a current opinion of the creditworthiness of an obligor with respect to a specific financial obligation, a specific class of financial obligations, or a specific financial program (including ratings on medium term note programs and commercial paper programs). It takes into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement on the obligation and takes into account the currency in which the obligation is denominated. The issue credit rating is not a recommendation to purchase, sell, or hold a financial obligation, inasmuch as it does not comment as to market price or suitability for a particular investor.

Issue credit ratings are based on current information furnished by the obligors or obtained by Standard & Poor's from other sources it considers reliable. Standard & Poor's does not perform an audit in connection with any credit rating and may, on occasion, rely on unaudited financial information. Credit ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or based on other circumstances.

Issue credit ratings can be either long-term or short-term. Short-term ratings are generally assigned to those obligations considered short term in the relevant market. In the U.S., for example, that means obligations with an original maturity of no more than 365 days, including commercial paper. Short-term ratings are also used to indicate the creditworthiness of an obligor with respect to put features on long-term obligations. The result is a dual rating, in which the short-term rating addresses the put feature, in addition to the usual long-term rating. Medium-term notes are assigned long-term ratings.

Issue credit ratings are based, in varying degrees, on the following considerations: likelihood of payment - capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with the terms of the obligation: nature of and provisions of the obligation; protection afforded by, and relative position of, the obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditors' rights.

The issue rating definitions are expressed in terms of default risk. As such, they pertain to senior obligations of an entity. Junior obligations are typically rated lower than senior obligations, to reflect the lower priority in bankruptcy, as noted above. (Such differentiation applies when an entity has both senior and subordinated obligations, secured and unsecured obligations, or operating company and holding company obligations.) Accordingly, in the case of junior debt the rating may not conform exactly with the category definition.

**Corporate and Municipal Bond Ratings**

***Investment-grade***

AAA: An obligation rated AAA has the highest rating assigned by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is extremely strong.

AA: An obligation rated 'AA' differs from the highest rated obligations only in small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong.

A: An obligation rated 'A' is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rated categories. However, the obligor's capacity to meet its financial commitment on the obligation is still strong.

BBB: An obligation rated 'BBS' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

***Speculative Grade***

Obligations rated 'BB', 'B', 'CCC', 'CC' and 'C' are regarded as having predominantly speculative characteristics with respect to capacity to pay interest and repay principal. BB indicates the least degree of speculation and C the highest. While such debt will likely have some quality and protective characteristics, these are outweighed by large uncertainties or major exposures to adverse conditions.

BB: An obligation rated 'BB' is less vulnerable to nonpayment than other speculative issues. However, it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.

B: An obligation rated 'B' is more vulnerable to nonpayment than obligations rated 'BB', but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair the obligor's capacity or willingness to meet its financial commitment on the obligation.

CCC: An obligation rated 'CCC' is currently vulnerable to nonpayment, and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation.

CC: An obligation rated 'CC' is currently highly vulnerable to nonpayment.

C: A subordinated debt or preferred stock obligation rated 'C' is currently highly vulnerable to nonpayment. The 'C' rating may be used to cover a situation where a bankruptcy petition has been filed or similar action taken, but payments on this obligation are being continued. A 'C' also will be assigned to a preferred stock issue in arrears on dividends or sinking fund payments, but that is currently paying.

D: An obligation rated 'D' is in payment default. The 'D' rating category is used when payments on an obligation are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.

Plus (+) or Minus (–): The ratings from AA to CCC may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.

Provisional ratings: The letter "p" indicates that the rating is provisional. A provisional rating assumes the successful completion of the project being financed by the debt being rated and indicates that payment of debt service requirements is largely or entirely dependent upon the successful and timely completion of the project. This rating, however, while addressing credit quality subsequent to completion of the project, makes no comment on the likelihood of, or the risk of default upon failure of, such completion. The investor should exercise his own judgment with respect to such likelihood and risk.

r: This symbol is attached to the ratings of instruments with significant noncredit risks. It highlights risks to principal or volatility of expected returns which are not addressed in the credit rating. Examples include: obligations linked or indexed to equities, currencies, or commodities; obligations exposed to severe prepayment risk - such as interest-only or principal-only mortgage securities; and obligations with unusually risky interest terms, such as inverse floaters.

The absence of an "r" symbol should not be taken as an indication that an obligation will exhibit no volatility or variability in total return.

N.R.: This indicates that no rating has been requested, that there is insufficient information on which to base a rating, or that Standard & Poor's does not rate a particular obligation as a matter of policy.

Debt obligations of issuers outside the United States and its territories are rated on the same basis as domestic corporate and municipal issues. The ratings measure the creditworthiness of the obligor but do not take into account currency exchange and related uncertainties.

**Commercial Paper Rating Definitions**

A Standard & Poor's commercial paper rating is a current assessment of the likelihood of timely payment of debt having an original maturity of no more than 365 days. Ratings are graded into several categories, ranging from A for the highest quality obligations to D for the lowest. These categories are as follows:

A-1: A short-term obligation rated 'A-1' is rated in the highest category by Standard & Poor's. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong.

A-2: A short-term obligation rated 'A-2' is somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory.

A-3: A short-term obligation rated 'A-3' exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet its financial commitment on the obligation.

B: A short-term obligation rated 'B' is regarded as having significant speculative characteristics. The obligor currently has the capacity to meet its financial commitment on the obligation; however, it faces major ongoing uncertainties which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation.

C: A short-term obligation rated 'C' is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation.

D: A short-term obligation rated 'D' is in payment default. The 'D' rating category is used when payments on an obligation are not made on the date due even if the applicable grace period has not expired, unless Standard & Poor's believes that such payments will be made during such grace period. The 'D' rating also will be used upon the filing of a bankruptcy petition or the taking of a similar action if payments on an obligation are jeopardized.

A commercial paper rating is not a recommendation to purchase, sell or hold a security inasmuch as it does not comment as to market price or suitability for a particular investor. The ratings are based on current information furnished to Standard & Poor's by the issuer or obtained from other sources it considers reliable. Standard & Poor's does not perform an audit in connection with any rating and may, on occasion, rely on unaudited financial information. The ratings may be changed, suspended, or withdrawn as a result of changes in or unavailability of such information.

**Fitch Investor Services, Inc.**

**Credit Ratings**

Fitch's credit ratings provide an opinion on the relative ability of an entity to meet financial commitments, such as interest, preferred dividends, repayment of principal, insurance claims or counterparty obligations. Credit ratings are used by investors as indications of the likelihood of receiving their money back in accordance with the terms on which they invested. Fitch's credit ratings cover the global spectrum of corporate, sovereign (including supranational and sub-national), financial, bank, insurance, municipal and other public finance entities and the securities or other obligations they issue, as well as structured finance securities backed by receivables or other financial assets.

The use of credit ratings defines their function: "investment grade" ratings (international Long-term 'AAA' to 'BBB-' categories; Short-term 'F1' to 'F3') indicate relatively low to moderate credit risk, while those in the "speculative" or "non investment grade" categories (international Long-term 'BB+' to 'D'; Short-term 'B' to 'D') either signal a higher level of credit risk or that a default has already occurred. Credit ratings express risk in relative rank order, which is to say they are ordinal measures of credit risk and are not predictive of a specific frequency of default or loss.

Depending on their application, credit ratings address benchmark measures of probability of default as well relative expectations of loss given default. For example, issuers are typically assigned Issuer Default Ratings that are relative measures of default probability. Similarly, short-term credit ratings give primary consideration to the likelihood that obligations will be met on a timely basis. Securities, however, are rated taking into consideration probability of default and loss given default. As a result, for entities such as corporations security ratings may be rated higher, lower or the same as the issuer rating to reflect expectations of the security's relative recovery prospects, as well as differences in ability and willingness to pay. While recovery analysis plays an important role throughout the ratings scale, it becomes a more critical consideration for below investment-grade securities and obligations, particularly at the lower end of the non-investment-grade ratings scale where Fitch often publishes actual Recovery Ratings, that are complementary to the credit ratings.

Structured finance ratings typically are assigned to each individual security or tranche in a transaction, and not to an issuer. Each structured finance tranche is rated on the basis of various stress scenarios in combination with its relative seniority, prioritization of cash flows and other structural mechanisms.

**International Long-Term Credit Ratings**

International Long-Term Credit Ratings (LTCR) may also be referred to as Long-Term Ratings. When assigned to most issuers, it is used as a benchmark measure of probability of default and is formally described as an Issuer Default Rating (IDR). The major exception is within Public Finance, where IDRs will not be assigned as market convention has always focused on timeliness and does not draw analytical distinctions between issuers and their underlying obligations. When applied to issues or securities, the LTCR may be higher or lower than the issuer rating (IDR) to reflect relative differences in recovery expectations.

The following rating scale applies to foreign currency and local currency ratings:

***Investment Grade***

**AAA**

Highest credit quality. 'AAA' ratings denote the lowest expectation of credit risk. They are assigned only in case of exceptionally strong capacity for payment of financial commitments. This capacity is highly unlikely to be adversely affected by foreseeable events.

**AA**

Very high credit quality. 'AA' ratings denote expectations of very low credit risk. They indicate very strong capacity for payment of financial commitments. This capacity is not significantly vulnerable to foreseeable events.

**A**

High credit quality. 'A' ratings denote expectations of low credit risk. The capacity for payment of financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable to changes in circumstances or in economic conditions than is the case for higher ratings.

**BBB**

Good credit quality. 'BBB' ratings indicate that there is currently expectations of low credit risk. The capacity for payment of financial commitments is considered adequate but adverse changes in circumstances and economic conditions are more likely to impair this capacity. This is the lowest investment grade category.

***Speculative Grade***

**BB**

**Speculative**

'BB' ratings indicate that there is a possibility of credit risk developing, particularly as the result of adverse economic change over time; however, business or financial alternatives may be available to allow financial commitments to be met. Securities rated in this category are not investment grade.

**B**

**Highly speculative**

For issuers and performing obligations, 'B' ratings indicate that significant credit risk is present, but a limited margin of safety remains. Financial commitments are currently being met; however, capacity for continued payment is contingent upon a sustained, favorable business and economic environment.

For individual obligations, may indicate distressed or defaulted obligations with potential for extremely high recoveries. Such obligations would possess a Recovery Rating of 'R1' (outstanding).

**CCC**

For issuers and performing obligations, default is a real possibility. Capacity for meeting financial commitments is solely reliant upon sustained, favorable business or economic conditions.

For individual obligations, may indicate distressed or defaulted obligations with potential for average to superior levels of recovery. Differences in credit quality may be denoted by plus/minus distinctions. Such obligations typically would possess a Recovery Rating of 'R2' (superior), or 'R3' (good) or 'R4' (average).

**CC**

For issuers and performing obligations, default of some kind appears probable.

For individual obligations, may indicate distressed or defaulted obligations with a Recovery Rating of 'R4' (average) or 'R5' (below average).

**C**

For issuers and performing obligations, default is imminent.

For individual obligations, may indicate distressed or defaulted obligations with potential for below-average to poor recoveries. Such obligations would possess a Recovery Rating of 'R6' (poor).

**RD**

Indicates an entity that has failed to make due payments (within the applicable grace period) on some but not all material financial obligations, but continues to honor other classes of obligations.

**D**

Indicates an entity or sovereign that has defaulted on all of its financial obligations. Default generally is defined as one of the following:

● failure of an obligor to make timely payment of principal and/or interest under the contractual terms of any financial obligation;

● the bankruptcy filings, administration, receivership, liquidation or other winding-up or cessation of business of an obligor; or

● the distressed or other coercive exchange of an obligation, where creditors were offered securities with diminished structural or economic terms compared with the existing obligation.

Default ratings are not assigned prospectively; within this context, non-payment on an instrument that contains a deferral feature or grace period will not be considered a default until after the expiration of the deferral or grace period.

Issuers will be rated 'D' upon a default. Defaulted and distressed obligations typically are rated along the continuum of 'C' to 'B' ratings categories, depending upon their recovery prospects and other relevant characteristics. Additionally, in structured finance transactions, where analysis indicates that an instrument is irrevocably impaired such that it is not expected to meet pay interest and or principal in full in accordance with the terms of the obligation's documentation during the life of the transaction, but where no payment default in accordance with the terms of the documentation is imminent, the obligation may be rated in the 'B' or 'CCC-C' categories.

Default is determined by reference to the terms of the obligations' documentation. Fitch will assign default ratings where it has reasonably determined that payment has not been made on a material obligation in accordance with the requirements of the obligation's documentation, or where it believes that default ratings consistent with Fitch's published definition of default are the most appropriate ratings to assign.

**International Short-Term Credit Ratings**

The following ratings scale applies to foreign currency and local currency ratings. A Short-term rating has a time horizon of less than 13 months for most obligations, or up to three years for US public finance, in line with industry standards, to reflect unique risk characteristics of bond, tax, and revenue anticipation notes that are commonly issued with terms up to three years. Short-term ratings thus place greater emphasis on the liquidity necessary to meet financial commitments in a timely manner.

**F1**

Highest credit quality. Indicates the strongest capacity for timely payment of financial commitments; may have an added "+" to denote any exceptionally strong credit feature.

**F2**

Good credit quality. A satisfactory capacity for timely payment of financial commitments, but the margin of safety is not as great as in the case of the higher ratings.

**F3**

Fair credit quality. The capacity for timely payment of financial commitments is adequate; however, near term adverse changes could result in a reduction to non investment grade.

**B**

Speculative. Minimal capacity for timely payment of financial commitments, plus vulnerability to near term adverse changes in financial and economic conditions.

**C**

High default risk. Default is a real possibility. Capacity for meeting financial commitments is solely reliant upon a sustained, favorable business and economic environment.

**RD**

Indicates an entity that has defaulted on one or more of its financial commitments, although it continues to meet other obligations.

**D**

Indicates an entity or sovereign that has defaulted on all of its financial obligations.

**Notes to International Long-Term and Short-Term ratings:**

The modifiers "+" or "–" may be appended to a rating to denote relative status within major rating categories. Such suffixes are not added to the 'AAA' Long-term rating category, to categories below 'CCC' or to Short-term ratings other than 'Fl'. (The +/– modifiers are only used to denote issues within the CCC category, whereas issuers are only rated CCC without the use of modifiers.)

Rating Watch: Ratings are placed on Rating Watch to notify investors that there is a reasonable probability of a rating change and the likely direction of such change. These are designated as "Positive," indicating a potential upgrade, "Negative," for a potential downgrade, or "Evolving," if ratings may be raised, lowered or maintained. Rating Watch is typically resolved over a relatively short period.

Rating Outlook: An Outlook indicates the direction a rating is likely to move over a one to two-year period. Outlooks may be positive, stable or negative. A positive or negative Rating Outlook does not imply a rating change is inevitable. Similarly, ratings for which outlooks are "stable" could be upgraded or downgraded before an outlook moves to positive or negative if circumstances warrant such an action. Occasionally, Fitch Ratings may be unable to identify the fundamental trend. In these cases, the Rating Outlook may be described as evolving.

Program ratings (such as the those assigned to MTN shelf registrations) relate only to standard issues made under the program concerned: it should not be assumed that these ratings apply to every issue made under the program. In particular, in the case of non-standard issues, i.e. those that are linked to the credit of a third party or linked to the performance of an index, ratings of these issues may deviate from the applicable program rating.

Variable rate demand obligations and other securities which contain a short-term "put" or other similar demand feature will have a dual rating, such as AAA/F1+. The first rating reflects the ability to meet long-term principal and interest payments, whereas the second rating reflects the ability to honor the demand feature in full and on time.

**Interest Only**

Interest Only ratings are assigned to interest strips. These ratings do not address the possibility that a security holder might fail to recover some or all of its initial investment due to voluntary or involuntary principal repayments.

**Principal Only**

Principal Only ratings address the likelihood that a security holder will receive their initial principal investment either before or by the scheduled maturity date.

**Rate of Return**

Ratings also may be assigned to gauge the likelihood of an investor receiving a certain predetermined internal rate of return without regard to the precise timing of any cash flows.

**'PIF'**

Paid-in-Full: denotes a security that is paid-in-full, matured, called, or refinanced.

'NR' indicates that Fitch Ratings does not rate the issuer or issue in question.

'Withdrawn': A rating is withdrawn when Fitch Ratings deems the amount of information available to be inadequate for rating purposes, or when an obligation matures, is called, or refinanced, or for any other reason Fitch Ratings deems sufficient.

**APPENDIX B**

**CLOUGH CAPITAL'S PROXY VOTING POLICIES AND PROCEDURES**

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| | |
|:---|:---|
| **Procedure Name:** | Proxy Voting Procedures & Proxy Voting Guidelines |
| **Related Policy:** | Proxy Voting |
| **Effective Date** | June 15, 2004, revised October 4, 2021 |
| **Responsible Person:** | Proxy Voting Administrator |
| **Detailed Procedures:** | **1.0 Proxy Voting in General**<br>Proxy votes for client accounts of Clough Capital will be handled by the Proxy Voting Administrator (the "Administrator") typically an intern or Co-op, who will coordinate all required proxy votes through ProxyEdge, a Broadridge Financial Solutions product ("Broadridge"). ProxyEdge will be used to vote proxies according to the attached guidelines (Appendix A), prepare the information required in order for ALPS Fund Services ("ALPS") to make the required filings for the mutual fund, and then store them in ProxyEdge for the required period of time. For issues not addressed by the Proxy Voting Guidelines, or for those issues where a determination is made by one of the persons listed in section 4.0 that a vote according to the established Guidelines would not be in the economic interest of a client account, the Administrator will refer the matter to the Compliance Committee for resolution.  |

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**1.1 Use of Proxy Edge for Voting**<br>ProxyEdge is an electronic voting service that helps simplify the management of proxies. The system manages the process of meeting notifications, voting, tracking, reporting, and record maintenance. ProxyEdge allows Clough Capital to manage, track, reconcile and report proxy voting through electronic delivery of ballots, online voting, and integrated reporting and recordkeeping to help satisfy SEC requirements. ProxyEdge provides proxy information through an automated electronic interface based on share positions provided directly to Broadridge by the client's custodian, bank or broker-dealer.<br>**2.0 Proxy Voting Administrator**<br>The duties of the Administrator will include the following:<br>&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;For new client accounts, confirm that Clough Capital will be voting proxies on the client's behalf, then contact Broadridge to coordinate an electronic feed of securities holdings from the client's custodian to ProxyEdge <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Gather any physical proxies sent to Clough Capital for each of the securities held by a client account or fund and double check that they have been voted in ProxyEdge <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Log on to the Proxy Edge system (<u>www.proxyedge.com</u>) to vote the proxies if they have not been voted <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Submit proxies that are not addressed in the Guidelines to PM's/Analysts for their opinion <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Run a proxy voting record for votes cast for the Clough Capital mutual funds on a quarterly basis to send to ALPS Fund Compliance <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Run a full year report for the mutual funds at end of each proxy year (July 1<sup>st</sup> to June 30<sup>th</sup>) and send to ALPS to complete the Form N-PX for filing with SEC by August 31<sup>st</sup> (this may also be done by the Director of Compliance and Risk)&nbsp;&nbsp;&nbsp;&nbsp;<br>

&nbsp;&nbsp;&nbsp;&nbsp;**3.0 Proxy Voting Record Required**<br>The following information must be recorded and saved by ProxyEdge for each proxy vote of each security:<br>&nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Name of the issuer of the portfolio security <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Exchange ticker symbol of the portfolio security <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;CUSIP for the portfolio security (if available) <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Shareholder meeting date <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Brief identification of matter voted on <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Whether the matter is proposed by issuer or a security holder <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Whether fund cast its vote on the matter <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;How the fund cast its vote (for/against/abstain) <br> &nbsp;&nbsp;&nbsp;&nbsp;●&nbsp;&nbsp;&nbsp;&nbsp;Whether fund cast its vote for or against the management position on the issue<br>This information is required to be filed with the SEC electronically via Form N-PX for all registered investment companies (mutual funds) no later than August 31 for the most recent 12-month period ended June 30. This will be done by the fund's administrator, ALPS, for the mutual funds sponsored by Clough Capital, but ALPS will need this information from Clough. The information also needs to be sent to ALPS so it is available upon request by shareholders.<br>**4.0 Contradiction to Proxy Voting Guidelines**<br>For the proxy issues outlined in the attached Proxy Voting Guidelines, the Clough Capital voting position will generally be as listed, and these will be the default votes in ProxyEdge, unless an analyst, trader, or portfolio manager of the firm believes that voting a particular proxy in accordance with the stated guideline would not be in the best economic interests of a client account, in which case that person should bring the matter to the attention of the Administrator. The Administrator will then refer the matter to the Compliance Committee for resolution, at which time the Administrator can log on to ProxyEdge and over-ride the default voting option, if necessary. Votes in contradiction to the established Proxy Voting Guidelines will be documented in an appropriate memo to file by the Chief Compliance Officer (the "CCO").<br>

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| | |
|:---|:---|
| | **4.1 Votes on Issues not listed in the Proxy Voting Guidelines**<br>If a proxy vote is received and the Administrator cannot find the particular issue to be voted on the Proxy Voting Guidelines, then the Administrator must summarize the issue and then bring it to the attention of the analyst covering that industry and the relevant portfolio manager for consideration. Once there has been a determination made as to how to vote the issue, the Administrator should update the Proxy Voting Guidelines for guidance on future, similar issues.<br>**5.0 Record Keeping Requirements**<br>Clough Capital must keep accurate books and records, including those relating to proxy voting. The records that must be maintained in accordance with the Record Keeping Policy are listed under Records Produced below. The Administrator will be responsible for ensuring that the records listed are maintained.  |
| **Records Produced:**<br>| &nbsp;&nbsp;&nbsp;&nbsp;● Proxy statements received regarding client securities<br> &nbsp;&nbsp;&nbsp;&nbsp;● Records of votes cast on behalf of clients (Reports from ProxyEdge)<br> &nbsp;&nbsp;&nbsp;&nbsp;● Information gathered for the filing of Form N-PX<br> &nbsp;&nbsp;&nbsp;&nbsp;● Form N-PX filed by August 31<sup>st</sup> of each year for preceding year ended June 30<sup>th</sup><br> &nbsp;&nbsp;&nbsp;&nbsp;● Records of client requests for proxy voting information, if any are sent to Clough Capital<br> &nbsp;&nbsp;&nbsp;&nbsp;● Any documents prepared by Clough Capital that were material to making a decision how to vote or that memorialized the basis for the decision |
| **Evidence of Supervision:**<br>| On a quarterly basis, the CCO will examine the proxy voting records in ProxyEdge and ensure that all proxies were voted in accordance with the Policy and documented accordingly, including any votes that presented a potential or actual conflict of interest. This information will be supplied to the Fund CCO as part of the Quarterly Compliance Certification.  |

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| | |
|:---|:---|
| **Record Keeping:**  | Records will be maintained for 2 years on site and 3 years offsite, except for records for registered mutual funds, which will be maintained for 2 years on site and 4 years offsite.  |

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**Appendix A**

**<u>Proxy Voting Guidelines</u>**

For the following proxy issues, the Clough Capital voting position will generally be as listed, unless an analyst, trader, or portfolio manager of the firm believes that voting a particular proxy in accordance with the stated guideline would not be in the best economic interests of a client account, in which case that person should bring the matter to the attention of the Proxy Voting Administrator. The Proxy Voting Administrator will then refer the matter to the Compliance Committee for resolution as outlined in the Proxy Voting Procedures.

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| | | | |
|:---|:---|:---|:---|
| **Category of Issue** | **Issue** | **Clough Position** | **Rationale/Reasoning** |
| Board of Directors | Election of Directors | Support Management Recommendations | Where no corporate governance issues are implicated |
| | Changes in Board of Directors (removals of directors; filling of vacancies; fixing size of board) | Support Management Recommendations | Management in best position to know if best for company |
| | Other Issues (e.g. Classified Board; Liability of Board; Qualification of Directors) | Generally Support Management Recommendations | So long as in best economic interests of clients |
| Capital Structure | Increase in common stock | Support Management Recommendations | Management in best position to know if best for company |
| | Reclassification of common stock | Support Management Recommendations | Management in best position to know if best for company |
| | Other Issues (e.g. Additional Shares; Stock Splits; Repurchases, etc.) | Generally Support Management Recommendations | So long as in best economic interests of clients |
| Corporate Governance | Addition or amendment of indemnification provisions in company's charter or by-laws | Support Management Recommendations | Management in best position to know if best for company |
| | Other issues (e.g. Confidential Voting; Cumulative Voting; Supermajority Requirements) | Generally Support Management Recommendations | So long as in best economic interests of clients |
| Compensation | Compensation of Outside Directors | Support Management Recommendations | Management in best position to know if best for company |
| | Other Issues (e.g. Executive/Director stock option plans; Employee Stock Option Plans; Option Expensing) | Generally Support Management Recommendations | So long as in best economic interests of clients |

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| | | | |
|:---|:---|:---|:---|
| Anti-Takeover Provisions | Shareholder rights plans ("Poison Pills") (shareholder approval of or ratification of these types of plans) | Generally Support Management Recommendations | So long as in best economic interests of clients |
| | Other Issues (e.g. Reincorporation plans; Fair-Price Proposals, etc.) | Generally Support Management Recommendations | So long as in best economic interests of clients |
| Mergers & Acquisitions | Special corporate transactions (takeovers; spin-offs; sales of assets; reorganizations; restructurings; recapitalizations) | Generally Support Management Recommendations | So long as in best economic interests of clients |
| Social & Political Issues | Labor & human rights (global codes of conduct; workplace standards) | Generally Support Management Recommendations | Generally best not to impose these issues from the outside |
| | Other Issues (e.g. Environmental issues; Diversity & Equality; Health & Safety; Government/Military) | Support Management Recommendation | Generally best not to impose these issues from the outside |
| Miscellaneous Items | Selection of Independent Auditors | Support Management recommendation | Management in best position to know if best for company |
| | Other Issues (e.g. Limitation of non-audit services provided by independent auditors; Audit Firm Rotation; Bundled Proposals, etc.) | Generally Support Management Recommendations | So long as in best economic interests of clients |

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 **PART C. OTHER INFORMATION**

**Item 28.** **<u>Exhibits</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **(1)** [Declaration of Trust of Registrant.<sup>(1)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834415003479/fp0014474_ex9928a1.htm)

**(b)** **(1)** [Bylaws of Registrant. <sup>(1)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834415003479/fp0014474_ex9928b1.htm)

**(c)** [Provisions of instruments defining rights of security holders are contained in Articles 4 and 7 of the Declaration of Trust (incorporated herein by reference to Exhibit (a)(1) of this filing).](http://www.sec.gov/Archives/edgar/data/1638872/000139834415003479/fp0014474_ex9928a1.htm)

**(d)** **(1)** [Management Agreement dated September 30, 2015 between Registrant and Clough Capital Partners L.P. with respect to the Clough Global Long/Short Fund.<sup>(3)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834416010319/fp0018191_ex9928d1.htm)

**(2)** [Amendment to Management Agreement dated September 30, 2015 between Registrant and Clough Capital Partners L.P. with respect to the Clough Global Long/Short Fund<sup>(9).</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834420004680/fp0050691_ex9928d2.htm)

**(e)** **(1)** [Distribution Agreement dated April 16, 2018 between Registrant and ALPS Portfolio Solutions Distributor, Inc. with respect to the Clough Global Long/Short Fund. <sup>(7)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000119312518208951/d831546dex99e1.htm)

**(2)** [Form of Selling Agreement between ALPS Portfolio Solutions Distributor, Inc. and Broker/Dealer.<sup>(2)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834415006418/fp0015815_ex9928e2.htm)

**(3)** [Form of Shareholder Servicing Agreement between ALPS Portfolio Solutions Distributor, Inc. and servicing firm. <sup>(2)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834415006418/fp0015815_ex9928e3.htm)

**(4)** [Form of Networking Agreement.<sup>(2)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834415006418/fp0015815_ex9928e4.htm)

**(5)** [Form of FundServ Agreement.<sup>(2)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834415006418/fp0015815_ex9928e5.htm)

**(f)** None.

**(g)** **(1)** [Master Custodian Agreement dated August 31, 2015 between Registrant and State Street Bank and Trust Company with respect to the Clough Global Long/Short Fund.<sup>(3)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834416010319/fp0018191_ex9928g1.htm)

**(h)** **(1)** [Transfer Agency and Service Agreement dated September 30, 2015 between Registrant and ALPS Fund Services, Inc. with respect to the Clough Global Long/Short Fund.<sup>(3)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834416010319/fp0018191_ex9928h1.htm)

**(2)** [Amendment No. 1 to Transfer Agency and Service agreement dated September 30, 2015 between Registrant and ALPS Fund Services, Inc. with respect to the Clough Global Long/Short Fund <sup>(10)</sup>.](http://www.sec.gov/Archives/edgar/data/1638872/000139834421004868/fp0062604_ex9928h2.htm)

**(3)** [Amendment No. 2 to Transfer Agency and Service agreement dated September 30, 2015 between Registrant and ALPS Fund Services, Inc. with respect to the Clough Global Long/Short Fund (<sup>10</sup>).](http://www.sec.gov/Archives/edgar/data/1638872/000139834416010319/fp0018191_ex9928h3.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(4)** [Administration, Bookkeeping and Pricing Services Agreement dated September 30, 2015 between Registrant and ALPS Fund Services, Inc. with respect to the Clough Global Long/Short Fund.<sup>(3)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834416010319/fp0018191_ex9928h2.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(5)** [Report Modernization Addendum dated April 11, 2018 to the Administration, Bookkeeping and Pricing Services Agreement dated September 30, 2015 between Registrant and ALPS Fund Services, Inc. with respect to the Clough Global Long/Short Fund. <sup>(7)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000119312518208951/d831546dex99h3.htm)

**(6)** [First Amendment dated September 1, 2022 to the Administration, Bookkeeping and Pricing Services Agreement dated September 30, 2015 between Registrant and ALPS Fund Services, Inc. with respect to the Clough Global Long/Short Fund (filed herewith)](fp0082174-2_ex9928h6.htm) .

**(7)** [Chief Compliance Officer Services Agreement dated September 30, 2015 between Registrant and ALPS Fund Services, Inc. with respect to the Clough Global Long/Short Fund.<sup>(3)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834416010319/fp0018191_ex9928h3.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(8)** [Fee Waiver Letter Agreement dated January 27, 2023 between Registrant and Clough Capital L.P. with respect to the Clough Global Long/Short Fund (filed herewith).](fp0082174-2_ex9928h8.htm)

**(i)** **(1)** [Opinion of Goodwin Procter LLP, counsel to Registrant, with respect to the shares described in Pre-Effective Amendment No. 2 to the Registration Statement of the Clough Global Long/Short Fund on Form N-1A. <sup>(2)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834415006418/fp0015815_ex9928i1.htm)

**(2)** [Consent of Morrison & Foerster LLP, counsel to Registrant, with respect to Post-Effective Amendment No. 17 to the Registration Statement of the Clough Global Long/Short Fund on Form N-1A (filed herewith).](fp0082174-2_ex9928i2.htm)

**(j)** **(1)** [Consent of Ernst & Young LLP, the Registrant's independent registered public accounting firm with respect to the Clough Global Long/Short Fund (filed herewith).](fp0082174-2_ex9928j1.htm)

**(k)** None.

**(l)** [Share Purchase Agreement with Registrant with respect to the Clough Global Long/Short Fund.<sup>(2)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834415006418/fp0015815_ex9928l.htm)

**(m)** **(1)** [Amended Distribution and Services (12b-1) Plan – Clough Global Long/Short Fund – Investor Class Shares (f/k/a A Shares).<sup>(5)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834418003072/fp0031306_ex9928m1.htm)

**(2)** [Distribution and Services (12b-1) Plan – Clough Global Long/Short Fund – C Shares.<sup>(2)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834415006418/fp0015815_ex9928m2.htm)

**(3)** [Amended Shareholder Services Plan - Clough Global Long/Short Fund – Investor Class Shares (f/k/a A Shares).<sup>(5)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834418003072/fp0031306_ex9928m2.htm)

**(4)** [Distribution and Services (12b-1) Plan – Clough Global Long/Short Fund – Class A Shares. <sup>(7)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000119312518208951/d831546dex99m4.htm)

**(5)** [Shareholder Services Plan - Clough Global Long/Short Fund – Class A Shares. <sup>(7)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000119312518208951/d831546dex99m5.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(n)** **(1)** [Amended Rule 18f-3 Plan – Clough Global Long/Short Fund.<sup>(5)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834418003072/fp0031306_ex9928n1.htm)

**(2)** [Amended Rule 18f-3 Plan – Clough Global Long/Short Fund – Class A Shares. <sup>(7)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000119312518208951/d831546dex99n2.htm)

**(p)** **(1)** [Code of Ethics for Registrant, as of January 11, 2017.<sup>(4)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000139834417002622/fp0024204_ex9928p1.htm)

**(2)** [Code of Ethics for ALPS Holdings, Inc. (includes ALPS Advisors, Inc. and ALPS Portfolio Solutions Distributor, Inc., each a subsidiary of ALPS Holdings, Inc.) revised as of July 1, 2020 (<sup>10</sup>).](http://www.sec.gov/Archives/edgar/data/1638872/000139834417002622/fp0024204_ex9928p2.htm)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)** [Code of Ethics for Clough Capital L.P. <sup>(6)</sup>](http://www.sec.gov/Archives/edgar/data/1638872/000119312518139315/d573459dex99p3.htm)

**(q)** [Power of Attorney dated July 14, 2022 (filed herewith)](fp0082174-2_ex9928q.htm) .

<sup>(1)</sup> Incorporated by reference to Registrant's Form N-1A filed on May 22, 2015. <br>

<sup>(2)</sup> Incorporated by reference to Registrant's Form N-1A/A filed on September 23, 2015. <br>

<sup>(3)</sup> Incorporated by reference to the Post-Effective Amendment No. 1 to Registrant's Registration Statement filed on February 26, 2016.

<sup>(4)</sup> Incorporated by reference to the Post-Effective Amendment No. 3 to Registrant's Registration Statement filed on February 28, 2017.

<sup>(5)</sup> Incorporated by reference to the Post-Effective Amendment No. 5 to Registrant's Registration Statement filed on February 28, 2018. <br>

<sup>(6)</sup> Incorporated by reference to the Post-Effective Amendment No. 7 to Registrant's Registration Statement filed on April 27, 2018. <br>

<sup>(7)</sup> Incorporated by reference to the Post-Effective Amendment No. 9 to Registrant's Registration Statement filed on June 29, 2018. <br>

<sup>(8)</sup> Incorporated by reference to the Post-Effective Amendment No. 11 to Registrant's Registration Statement filed on February 28, 2019. <br>

<sup>(9)</sup> Incorporated by reference to the Post-Effective Amendment No. 13 to Registrant's Registration Statement filed on February 28, 2020.

<sup>(10)</sup> Incorporated by reference to the Post-Effective Amendment No. 15 to Registrant's Registration Statement filed on February 26, 2021.

Item 29. <u>Persons Controlled by or Under Common Control with the Registrant</u>.

None.

Item 30. <u>Indemnification</u>.

As permitted by Section 17(h) and (i) of the Investment Company Act of 1940, as amended (the "1940 Act"), and pursuant to Article 8 of the Registrant's Declaration of Trust (Exhibit (a)(1) to the Registration Statement) and Section 7 of the Distribution Agreement Exhibit (e)(1) to the Registration Statement), officers, trustees, employees and agents of the Registrant will not be liable to the Registrant, any shareholder, officer, trustee, employee, agent or other person for any action or failure to act, except for bad faith, willful misfeasance, gross negligence or reckless disregard of duties, and those individuals may be indemnified against liabilities in connection with the Registrant, subject to the same exceptions.

Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended (the "Securities Act"), may be permitted to trustees, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant understands that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a trustee, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such trustee, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The Registrant has purchased an insurance policy insuring its officers and trustees against liabilities, and certain costs of defending claims against such officers and trustees, to the extent such officers and trustees are not found to have committed conduct constituting willful misfeasance, bad faith, gross negligence or reckless disregard in the performance of their duties. The insurance policy also insures the Registrant against the cost of indemnification payments to officers under certain circumstances.

The Registrant hereby undertakes that it will apply the indemnification provisions of its Declaration of Trust and Distribution Agreements in a manner consistent with Release No. 11330 of the Securities and Exchange Commission under the 1940 Act so long as the interpretations of Section 17(h) and 17(i) of such Act remain in effect and are consistently applied.

Item 31. <u>Business and Other Connections of Investment Adviser</u>.

Clough Capital Partners L.P. ("Clough") serves as the investment adviser to the Registrant. The descriptions of Clough in Parts A and B of the Registration Statement are incorporated by reference herein. To the knowledge of the Registrant, none of the directors, officers or partners of Clough is or has been at any time during the past two fiscal years engaged in any other business, profession, vocation or employment of a substantial nature.

Item 32. <u>Principal Underwriter</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) ALPS Portfolio Solutions Distributor, Inc. acts as the distributor for the Registrant and the following investment companies: ALPS ETF Trust, ALPS Variable Investment Trust, Financial Investors Trust and Select Sector SPDR Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the best of Registrant's knowledge, the directors and executive officers of ALPS Portfolio Solutions Distributor, Inc., are as follows:

---

| | | |
|:---|:---|:---|
| **Name\*** | **Position with Underwriter** | **Positions with Fund** |
| Stephen J. Kyllo | President, Chief Operating Officer, Director, Chief Compliance Officer | None |
| Patrick J. Pedonti\*\* | Vice President, Treasurer and Assistant Secretary | None |
| Eric Parsons | Vice President, Controller and Assistant Treasurer | None |
| Jason White\*\*\* | Secretary | None |
| Richard C. Noyes | Senior Vice President, General Counsel, Assistant Secretary | None |
| Liza Orr | Vice President, Senior Counsel | None |
| Jed Stahl | Vice President, Senior Counsel | None |
| Terence Digan | Vice President | None |
| James Stegall | Vice President | None |
| Gary Ross | Senior Vice President | None |
| Hilary Quinn | Vice President | None |

---

\* Except as otherwise noted, the principal business address for each of the above directors and executive officers is 1290 Broadway, Suite 1000, Denver, Colorado 80203.

\*\* The principal business address for Messrs. Pedonti is 333 W. 11<sup>th</sup> Street, 5<sup>th</sup> Floor, Kansas City, Missouri 64105.

\*\*\* The principal business address for Mr. White is 4 Times Square, New York, NY 10036.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Not applicable.

Item 33. <u>Location of Accounts and Records</u>.

All accounts, books and other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940, as amended, and the rules thereunder are maintained at the following offices: (1) ALPS Portfolio Solutions Distributor, Inc., 1290 Broadway, Suite 1000, Denver, Colorado 80203; and (2) Clough Capital Partners L.P., 53 State Street, 27th Floor, Boston, Massachusetts 02109.

Item 34. <u>Management Services</u>.

Not applicable.

Item 35. <u>Undertakings</u>.

Not applicable.

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all the requirements for effectiveness of this Registration Statement pursuant to rule 485(b) under the Securities Act of 1933 and has duly caused this Post-Effective Amendment No. 17 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the city of Denver, and State of Colorado, on February 28, 2023.

---

| | |
|:---|:---|
| **CLOUGH FUNDS TRUST** | **CLOUGH FUNDS TRUST** |
| (Registrant) | (Registrant) |
| By**:** | /s/ Lainey Ejiasa |
|  | Lainey Ejiasa |
|  | President |

---

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| /s/ Edmund J. Burke | Trustee | February 28, 2023 |
| Edmund J. Burke\* |  |  |
| /s/ Kevin McNally | Trustee | February 28, 2023 |
| Kevin McNally\* |  |  |
| /s/ Jeremy W. Deems | Trustee | February 28, 2023 |
| Jeremy W. Deems\* |  |  |
| /s/ James M. Maxwell | Trustee | February 28, 2023 |
| James M. Maxwell\* |  |  |
| /s/ Clifford J. Weber | Trustee and Chairman | February 28, 2023 |
| Clifford J. Weber\* |  |  |
| /s/ Lainey Ejiasa | President | February 28, 2023 |
| Lainey Ejiasa |  |  |
| /s/ Ryan Johanson | Treasurer | February 28, 2023 |
| Ryan Johanson |  |  |

---

\* Signature affixed by Nicholas Adams pursuant to a power of attorney dated July 14, 2022, filed herewith.

**Exhibit List**

---

| | | |
|:---|:---|:---|
| **Exhibit** | **Exhibit** | **Exhibit** |
| [**(h)**](fp0082174-2_ex9928h6.htm) | [**(6)**](fp0082174-2_ex9928h6.htm) | [First Amendment dated September 1, 2022 to the Administration, Bookkeeping and Pricing Services Agreement dated September 30, 2015 between Registrant and ALPS Fund Services, Inc](fp0082174-2_ex9928h6.htm). |
| [**(h)**](fp0082174-2_ex9928h8.htm) | [**(8)**](fp0082174-2_ex9928h8.htm) | [Fee Waiver Letter Agreement dated January 27, 2022 between Registrant and Clough Capital L.P. with respect to the Clough Global Long/Short Fun](fp0082174-2_ex9928h8.htm)d |
| [**(i)**](fp0082174-2_ex9928i2.htm) | [**(2)**](fp0082174-2_ex9928i2.htm) | [Consent of K&L Gates LLP, counsel to Registrant, with respect to Post-Effective Amendment No. 16 to the Registration Statement of the Clough Global Long/Short Fund on Form N-1A.](fp0082174-2_ex9928i2.htm) |
| [**(j)**](fp0082174-2_ex9928j1.htm) | [**(1)**](fp0082174-2_ex9928j1.htm) | [Consent of Ernst & Young LLP, the Registrant's independent registered public accounting firm with respect to the Clough Global Long/Short Fund.](fp0082174-2_ex9928j1.htm) |
| [**(q)**](fp0082174-2_ex9928q.htm) |  | [Power of Attorney dated July 14, 2022.](fp0082174-2_ex9928q.htm) |

---

## Exhibit 99.28

**FIRST AMENDMENT TO THE ADMINISTRATION, BOOKKEEPING AND** 

**PRICING SERVICES AGREEMENT**

This Amendment (the "Amendment") between the parties signing below ("Parties") amends the Existing Agreement as of September 1, 2022 (the "Effective Date"):

---

| | |
|:---|:---|
| **Term** | **Means** |
| "Existing Agreement" | The Administration, Bookkeeping and Pricing Services Agreement among ALPS and the Trust dated September 30, 2015, as amended. |
| "ALPS" | ALPS Fund Services, Inc. |
| "Trust" | Clough Funds Trust |

---

Except as amended hereby, all terms of the Existing Agreement remain in full force and effect. This Amendment includes the amendments to Schedule A and Schedule B.

IN WITNESS WHEREOF, the Parties have caused this Amendment to be executed by their duly authorized representatives.

---

| | | | |
|:---|:---|:---|:---|
| **ALPS Fund Services, Inc.** | **ALPS Fund Services, Inc.** | **Clough Funds Trust** | **Clough Funds Trust** |
| By: | /s/ Kenneth Fullerton | By: | /s/ Lainey Ejiasa |
| Name: | Kenneth Fullerton | Name: | Lainey Ejiasa |
| Title: | Authorized Signatory | Title: | President |

---

**Schedule A to this Amendment** 

**Amendments**

As of the Effective Date, the Existing Agreement is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Section
 2(a) in the Existing Agreement is deleted in its entirety and replaced with the following:

In consideration for the services performed in accordance with the "Regulatory Services – 18f-4" section of Appendix B attached hereto, the Trust shall pay ALPS the fees set forth in the attached confidential fee letter (the "Fee Letter"), which may be amended from time to time. The Fee Letter is hereby incorporated by reference into this Existing Agreement and subject to the terms of this Existing Agreement. In consideration for all other services performed pursuant to the attached Appendix B, the Trust shall pay ALPS the fees listed in Appendix C, as amended from time to time, of the Existing Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Section
 15(b) of the Existing Agreement is deleted in its entirety and replaced with the following:

<u>Renewal Term.</u> If not sooner terminated, this Agreement shall renew at the end of the Initial Term and shall thereafter continue for successive annual periods. Notwithstanding the foregoing, this Agreement may be terminated by the Fund or by ALPS at any time, without penalty, upon not less than 60 days' written notice to the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The
 ALPS and Trust contact information in Section 18. Notices of the Existing Agreement is
 deleted in its entirety and replaced with the following:

To ALPS:

ALPS Fund Services, Inc.

1290 Broadway, Suite 1000

Denver, CO 80203

Attn: General Counsel

Email: notices@sscinc.com

To the Fund:

Clough Funds Trust

1290 Broadway, Suite 1000

Denver, CO 80203

Attn: Secretary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Appendix
 B – Services, of the Existing Agreement is deleted in its entirety and replaced
 by Appendix B attached hereto.

**Schedule B to this Amendment**

**General Terms**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Capitalized
 terms not defined herein shall have the meanings given to them in the Existing Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Parties' duties and obligations are governed by and limited to the express terms
 and conditions of this Amendment, and shall not be modified, supplemented, amended or
 interpreted in accordance with, any industry custom or practice, or any internal policies
 or procedures of any Party. This Amendment (including any attachments, schedules and
 addenda hereto), along with the Existing Agreement, as amended, contains the entire agreement
 of the Parties with respect to the subject matter hereof and supersedes all previous
 communications, representations, understandings and agreements, either oral or written,
 between the Parties with respect thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. This
 Amendment may be executed in counterparts, each of which when so executed will be deemed
 to be an original. Such counterparts together will constitute one agreement. Signatures
 may be exchanged via facsimile or electronic mail and signature so exchanged shall be
 binding to the same extent as if original signatures were exchanged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. This
 Amendment and any dispute or claim arising out of or in connection with it, its subject
 matter or its formation (including non-contractual disputes or claims) shall be governed
 by and construed with the laws of the same jurisdiction as the Existing Agreement.

**APPENDIX B**

**<u>SERVICES</u>**

**<u>Fund Administration</u>**

● Prepare annual and semi-annual financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Utilize
 templates for standard layout and printing.

● Coordinate and prepare Forms N-CEN, N-CSR, N-PORT, N-PX and 24f-2 for review by Fund management.

● Host Annual Audits.

● Calculate monthly SEC standardized total return performance figures.

● Prepare required reports for Board meetings.

● Monitor expense ratios.

● Maintain budget vs. actual expenses.

● Manage Fund invoice approval and bill payment process.

● Assist with placement of Fidelity bond and D&O/E&O insurance.

● Coordinate reporting to outside agencies including Morningstar, etc.

**<u>Fund Accounting</u>**

● Calculate daily NAVs.

● Transmit daily NAVs to NASDAQ, Transfer Agent and other third parties.

● Compute yields, expense ratios, portfolio turnover rates, etc.

● Reconcile cash and investment balances with the custodian.

● Support preparation of financial statements.

● Prepare and maintain required Fund Accounting records in accordance with the 1940 Act.

● Obtain security valuations from appropriate sources consistent with the Fund's pricing and valuation policies.

**<u>Legal Administration</u>**

● Prepare annual update of the Fund's Prospectus, Statement of Additional Information, Summary Prospectus, if any, as well as any supplements thereto, for review by Fund management and Fund counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Coordinate
 standard layout and printing of Prospectus.

● Prepare SEC filings for review by Fund management and Fund counsel.

● Coordinate EDGARization and filing of documents with the SEC.

● Coordinate printing and mailing process for shareholder communications.

● Prepare, compile and distribute quarterly board meeting materials.

● Participate in quarterly board meetings telephonically and prepare initial drafts of quarterly meeting minutes.

**<u>Tax Administration</u>**

● Calculate dividend and capital gain distribution rates, including distributions necessary to avoid excise tax<sup>1</sup>.

● Calculate tax disclosure information (ROCSOP) for the audited financial statements.

● Provide tax re-allocation data for shareholder 1099 reporting.

● Prepare and coordinate filing of income and excise tax returns<sup>1</sup>.

● On a quarterly basis, provide Subchapter M asset diversification testing.

● On an annual basis, provide Subchapter M gross income testing.

● Calculate and monitor applicable book-to-tax differences and assist in identifying securities that give rise to book-to-tax differences<sup>2</sup>.

**<u>Compliance Administration</u>**

● Provide daily investment restriction compliance monitoring support and reporting.

● Provide warning/alert notification with supporting documentation.

● Report violations, if any, to a Fund and the Fund's CCO as promptly as practicable following discovery.

**<u>Regulatory Services – Rule 18f-4</u>**

● Extract Fund and benchmark related data from portfolio accounting platform and send to risk engine for analytic processing related to Rule 18f-4.

<sup>1</sup> The Fund's independent registered public accounting firm ("independent auditors") provides review and sign-off on excise distributions and income and excise tax returns. ALPS shall not analyze or investigate information or returns for foreign tax filings. In the event the Fund's independent auditors require ALPS to perform foreign capital gain analysis, ALPS reserves the right to charge the Fund for the foreign capital gain analysis, subject to agreement by ALPS and Fund management. ALPS also reserves the right to use the Gainskeeper straddle system in the event the Fund uses derivatives that create tax straddles. State income or franchise tax return preparation is limited to the initial state of nexus and does not include additional state filing requirements that may be triggered by underlying investments of the Fund.

<sup>2</sup> Security classifications to be identified include but are not limited to passive foreign investment company, real estate investment trust, master limited partnership, contingent debt obligations, trust preferred, grantor trust and stapled security. The ultimate determination of the classification of securities will be the responsibility of Fund Management or ALPS will use Earnst & Young LLP passive foreign investment company analyzer service, or similar entity, as an out-of-pocket fee.

● Process Fund and benchmark related data once per day to calculate daily relative or absolute value-at-risk ("VaR") and produce testing reports to be delivered to the DRM to assist in monitoring of Rule 18f-4 requirements.

● Calculate and provide daily stress test results with conditional, historical and deterministic stress as required by Rule 18f-4.

● Calculate and provide monthly automated data feed from risk engine of N-PORT required data points related to Rule 18f-4 into N-PORT reporting platform.

● Additional services, if any, requested by the Board or required to comply with Rule 18f-4 shall be mutually agreed upon between the Parties in writing.

## Exhibit 99.28

---

| | |
|:---|:---|
| ![](image_003.jpg) | morrison foerster llp |

---

February 26, 2022

**<u>Via EDGAR</u>**<br>Division of Investment Management<br> United States Securities and Exchange Commission<br> 100 F Street, NE<br> Washington, DC 20549<br>

RE: Post-Effective Amendment No. 17 to Registration Statement on Form N-1A for Clough Funds Trust (File Nos. 333-204408 and 811-23059)

Ladies and Gentlemen:

We hereby consent to the reference to our firm as counsel in Post-Effective Amendment No. 17 to the Registration Statement on Form N-1A of Clough Funds Trust (File Nos. 333-204408 and 811-23059).

---

| |
|:---|
| Very truly yours, |
| /s/ Morrison & Foerster LLP |
| Morrison & Foerster LLP |

---

## Exhibit 99.28

**CONSENT OF ERNST & YOUNG LLP, INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

We consent to the references to our firm under the captions "Financial Highlights" in the Prospectus and "Independent Registered Public Accounting Firm" and "Financial Statements" in the Statement of Additional Information, each dated February 28, 2023, and each included in this Post-Effective Amendment No. 16 to the Registration Statement (Form N-1A, No. 333-204408) of Clough Funds Trust (the "Registration Statement").

We also consent to the incorporation by reference of our report dated December 27, 2022, with respect to the financial statements and financial highlights of Clough Global Long/Short Fund (the "Fund") (one of the funds constituting Clough Funds Trust) included in the Fund's Annual Report to Shareholders (Form N-CSR) for the year ended October 31, 2022, into this Registration Statement, filed with the Securities and Exchange Commission.

/s/ Ernst & Young LLP

Boston, Massachusetts

February 28, 2023

## Exhibit 99.28

**CLOUGH CAPITAL PARTNERS L.P.**

53 State Street

27th Floor

Boston 02109

January 26, 2023

Ms. Lainey Ejiasa, President

Clough Funds Trust

1290 Broadway, Suite 1000

Denver, CO 80203

Re: <u>Clough Funds Trust (the "Trust") – Clough Global Long/Short Fund (the "Fund")</u>

Dear Ms. Ejiasa:

This letter confirms the agreement by Clough Capital Partners L.P. (the "Adviser") with the Trust to contractually limit the total expenses of the Fund as set forth herein. To the extent the Total Annual Fund Operating Expenses (as defined in Item 3 to Form N-1A), after such expense reimbursement and/or fee waiver (excluding Rule 12b-1 Distribution and Service Fees, Shareholder Services Fees, acquired fund fees and expenses, interest, taxes, brokerage costs and commissions, dividend and interest expense on short sales, litigation, indemnification and extraordinary expenses as determined under generally accepted accounting principles), exceed 1.25% for each of the Class A, Investor Class, Class C and Class I shares of the Fund, the Adviser will waive a portion of its advisory fees to the extent of such excess and/or shall reimburse and/or cause a third-party to reimburse the Fund (or class as applicable) by the amount of such excess. The waiver or reimbursement shall be allocated to each class of the Fund in the same manner as the underlying expenses or fees were allocated.

The Adviser agrees that the above fee waivers and reimbursements for the Fund are effective through February 28, 2024, unless modified or terminated prior to that date by agreement of the Adviser and the Board of Trustees of the Trust.

The Adviser is entitled to recover, on a class-by-class basis, any fees waived and/or expenses reimbursed under this letter agreement if such recovery does not cause the Total Annual Fund Operating Expenses to exceed the expense limitations in effect (i) at the time the expenses to be recovered were waived and/or reimbursed or (ii) at the time of such recovery. Notwithstanding the foregoing, the Fund will not pay any such waived or reimbursed fees and expenses more than three years after the end of the fiscal year in which the fee was waived or expense reimbursed.

Notwithstanding the foregoing, this letter shall terminate immediately, and the Adviser shall have no further obligations hereunder, in the event that the Adviser ceases to serve as the investment adviser with respect to the Fund.

[signature page follows]

---

| | |
|:---|:---|
| **CLOUGH CAPITAL PARTNERS L.P.** | **CLOUGH CAPITAL PARTNERS L.P.** |
| By: | /s/ John Kowaleski |
| Name: | John Kowaleski |
| Title: | CFO |

---

Your signature below acknowledges acceptance of this letter agreement:

---

| | |
|:---|:---|
| **CLOUGH FUNDS TRUST** | **CLOUGH FUNDS TRUST** |
| By: | /s/ Lainey Ejiasa |
| Name: | Lainey Ejiasa |
| Title: | President |

---

## Exhibit 99.28

We, the undersigned Trustees of the following investment company:

Clough Funds Trust

hereby severally constitute and appoint Nicholas Adams and Alex Marks, with full power of substitution, and with full power to sign for us and in our names in the appropriate capacities, all Pre-Effective Amendments to any Registration Statement of the Trust, any and all subsequent Post-Effective Amendments to said Registration Statements, any Registration Statements on Form N-1A, and any supplements or other instruments in connection therewith, and generally to do all such things in our names and behalf in connection therewith as said attorney-in-fact deems necessary or appropriate, to comply with the provisions of the Securities Act of 1933, as amended, and Investment Company Act of 1940, as amended, and all related requirements of the Securities and Exchange Commission, hereby ratifying and confirming all that said attorney-in-fact or his or her substitutes may do or cause to be done by virtue hereof.

By signing below, the Trustees of Clough Funds Trust severally revoke any prior Power of Attorney with respect to the subject matter set forth above.

WITNESS our hands on this 14th day of July, 2022.

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| |
|:---|
| /s/ Clifford J. Weber |
| Clifford J. Weber |
| /s/ Edmund J. Burke |
| Edmund J. Burke |
| /s/ Jeremy W. Deems |
| Jeremy W. Deems |
| /s/ James M. Maxwell |
| James M. Maxwell |
| /s/ Kevin McNally |
| Kevin McNally |

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