To Our Shareholders:

Clough Global Allocation Fund (GLV)

During the six months ended September 30, 2013, the Clough Global Allocation Fund (GLV) posted a total return at net asset value of 7.12%. The S&P 500 and the MSCI World Index returned 8.31% and 9.24% respectively over the same period. Additionally, $0.60 per share in distributions was paid during the past six months, so the Fund’s total return to shareholders, including reinvested dividends, based on market price was 5.19%. As of September 30, 2013, the Fund had a dividend distribution rate on the market price of 7.87%.

Clough Global Equity Fund (GLQ)

During the six months ended September 30, 2013, the Clough Global Equity Fund (GLQ) posted a total return at net asset value of 9.05%. The S&P 500 and the MSCI World Index returned 8.31% and 9.24% respectively over the same period. Additionally, $0.58 per share in distributions was paid during the past six months, so the Fund’s total return to shareholders, including reinvested dividends, based on market price was 6.26%. As of September 30, 2013, the Fund had a dividend distribution rate on the market price of 7.72%.

Clough Global Opportunities Fund (GLO)

During the six months ended September 30, 2013, the Clough Global Opportunities Fund (GLO) posted a total return at net asset value of 7.26% for the six month period ending September 30th. The S&P 500 and the MSCI World Index returned 5.25% and 8.34% respectively over the same period. Additionally, $0.54 per share in distributions was paid during the past six months, so the Fund’s total return to shareholders, including reinvested dividends, based on market price was 4.20%. As of September 30, 2013, the Fund had a dividend distribution rate on the market price of 8.39%.

The Funds benefitted largely from gains in the stocks of companies generating high levels of free cash flow, and from the stocks of financial and health care companies. Liberty Media and Under Armour among consumer issues, Genworth Financial and AIG Corp among financials and Centene and Jazz Pharmaceuticals were important healthcare contributors. While short positions in European financials and index hedges subtracted from performance, the net results were gratifying.

Our primary strategy of investing in companies which generate enough excess cash flow to buy in their equity we think still offers a wide opportunity set. Investments include several of the “Liberty” companies controlled by John Malone, the cable industry pioneer, including Liberty Interactive, Liberty Media Corp, and Liberty Ventures. These are largely media based holding companies with irreplaceable assets which in the aggregate sell at discounts to their market values. The common theme among these positions is management’s active use of tax efficient strategies to maximize the value of individual assets and low cost debt to lever returns. At Liberty Interactive the company will spin-off two of its holdings, QVC and Digital Commerce, into individual tracking stocks and accelerate

its share repurchase program. We think the recapitalization will proceed similarly to the early 2013 Liberty /Starz and more recent Fox / News Corp. splits where we end up receiving the so-called “bad” asset (Digital Commerce in this case) essentially for free, since the “good” asset attracts more intense investor interest. At Liberty Media the company announced it repurchased 5.2% of its shares from Comcast, that it would sell $500 million of its high basis Sirius XM Radio Inc. stock into Sirius’ $2 billion share repurchase program, and it would also sell $500 million of convertible equity. These moves are all accretive to net asset value (NAV). Finally, Liberty Ventures will spin off its 57% voting control (22% economic interest) of TripAdvisor into a separate entity and take down a $400 million margin loan to pay a $350 million dividend back to Ventures. Liberty will not only eliminate the discount to NAV that the TRIP shares have reflected as part of Ventures, but also highlight the value of the control stake. We surmise that John Malone is raising a lot of attractively priced capital that could be used to engineer the acquisition of Time Warner Cable by Charter Communications. Liberty Media owns 27% of Charter and the combination of the two entities would be doubly accretive, particularly since so much attractively priced capital has been raised to fund the purchase.

Several technology holdings were strong in September. Our tech investments are divided between two themes. Micron Technology, Inc., a semiconductor memory manufacturer is a strong example of how industry consolidation and disciplined investment can improve pricing and profitability, remove cyclicality and improve long run returns. Secondly a capital spending cycle is emerging, creating an opportunity for companies offering disruptive technologies to achieve high secular growth rates and higher margins. eBay Inc. is an example of a company leveraging its online marketplace and PayPal payments processing subsidiary to enable commerce activity worldwide. Google, the leading search engine operator, is making great strides in mobile search.

US financial companies, particularly the universal banks such as Citigroup Inc. and insurers like Genworth Financial Inc., remain undervalued, we think, despite performing well over the past year. Citi has several things going for it: new and impressive management, declining leverage which implies a higher price to earnings ratio, a strong franchise in higher margin emerging market lending, a strong capital markets business and higher earnings per share (EPS) potential as Citi Holdings, the so-called bad bank, is liquidated. It is one of a handful of truly global banking franchises yet it still sells at a discount to tangible book. Emerging markets, where Citi’s brand is strong and credit is under-penetrated provide almost half of the company’s earnings. The simple replacement over time of the “bad” Citi Holdings book with growing emerging market assets should provide an improving earnings profile. Further, the company should be able to use most of its $45 billion net operating loss (NOL) tax shield (almost 1/3 of its equity capitalization) to offset income tax expenses in the coming years. Genworth Financial, a diversified insurer, sells at half of book, yet under a new management team is riding positive tailwinds in both its mortgage insurance and annuity businesses.

After several years of being a severe headwind, Asian equity markets have strengthened. In China that strength has been focused on

midsized consumer companies building strong brand franchises and that is where we focus our research. For example, Man Wah Holdings, a long time holding, and Great Wall Motor Co., an auto manufacturer, have been strong while the stocks of the large state owned companies that dominate the indexes have stagnated. Moreover, we believe multinationals are not an effective way to invest in emerging markets and perhaps the weakness in the stock prices of companies like Coca Cola reflect that. Earnings misses are becoming more common as local companies become more nimble and faster to respond to changes in consumer tastes. Our view is the simplistic one that people want better lives and that is particularly true in emerging markets where most people live. That aspiration presents one of the major investment opportunities in the years ahead. Yet emerging market economic realities are often misunderstood and that causes mispricing of assets, sometimes meaningfully.

Anticipating a financial collapse in China has been popular and that has masked the emergence of good value among the stocks of emerging consumer companies sporting strong brands. Leverage is high in China but that is largely in the government sector and is due to anomalies in China’s immature financial infrastructure. Private savings are also high and the banking system is the only mechanism through which those savings can be intermediated, through bank loans and so-called wealth management products. Capital markets are in their infancy and as financial sector reforms take shape they could explode in size. In addition our take is that China’s infrastructure investment boom is not wasteful but has allowed people and product to move more efficiently around China and that a domestic productivity boom is about to emerge. Policy moves are underway to improve the underpinnings of China’s private sector which provides 85% of the jobs. According to a CLSA study, the private sector’s share of profits has tripled since 2004 while the state owned enterprise share has fallen from 45% to 28%.

We believe China has the best chance among emerging markets of making the transition to a consumer driven economy. First the capital account, though increasingly porous, is essentially closed and there is little hot money invested in China about to move out. As noted above private savings are high and domestic liquidity is ample. Finally, China’s comparative advantage is no longer cheap labor but is two pronged. One advantage is a growing, productive and increasingly educated middle class. The second is the fact that Hong Kong provides deep and liquid capital markets. Not only has Hong Kong already emerged as the world’s second largest securities exchange, but as China internationalizes its currency its capital markets will become even more dominating. The strength of the Yuan contrasts with the weakness of the currencies of virtually all other emerging economies.

We also continue to invest in Japan. The case so far has been based upon the aggressiveness of the Bank of Japan’s reflation policies, but a rise in corporate investment would solidify the investment case and early indicators are good. Consumer confidence is improving, the Tankan index of sentiment among large manufacturers rose to the highest since 2007, and there is tremendous individual wealth in Japan, most of it bottled up in money market securities. Sales of luxury goods rose 14% and deliveries of passenger and commercial

vehicles rose 17% during the first five months of 2013 according to 13D Research.

The Funds’ short book was a drag on results in the summer’s strong equity markets but we still see opportunities. Large capacity expansions in the critical iron ore and metals industries over coming years will likely hurt profitability among producers and their suppliers. The case for our long held short position in Euro banks however, has become more nuanced in view of the market’s newfound enthusiasm for Eurozone recovery. Our analysis suggests solvency among many banks is still deteriorating and the pretension that all their loans are good exacerbates that trend. The similarities with Japan in the mid 1990s are striking. Refusal to recapitalize its banks, constant dithering over asset quality and single banking regulatory structures and the purchase of even more unserviceable sovereign debt, all suggest credit growth is impossible. Euro bank holdings of sovereign debt essentially leaves them levered options on country sovereign risk according to the Financial Times.

The Euro area was designed optimally for a small number of northern countries, primarily Germany and the Netherlands. Inter-country trade flows, relative banking system solvency and unemployment patterns and the social strains they cause remain epidemic. Nevertheless the union has declared that the sanctity of both bank deposits and sovereign debt is at risk. The world has suddenly come to believe recovery is now assured and the “crisis” has passed. The European Central Bank has felt it possible to drain reserves from the banking system in the face of 25% unemployment in large parts of southern Europe, especially among the young. Many of these face the prospect of never securing stable employment. Outright Monetary Transactions (OMT) has never been tested nor has there been a legitimate solvency test of the continent’s financial institutions. Without full banking union, no legitimate backstop to the banking system exists. It just seems to us that stock prices in Asia are much cheaper than in Europe.

If you have any questions about your investment, please call 1-877-256-8445.

Sincerely,

Charles I. Clough, Jr.

Past performance is no guarantee of future results.

The information in this letter represents the opinions of the individual Portfolio Managers and is not intended to be a forecast of future events, a guarantee of future results, or investment advice.

MSCI World Index – A free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The index includes reinvestment of dividends, net of foreign withholding taxes.

The S&P 500^® Index – Standard & Poor’s composite index of 500 stocks, a widely recognized, unmanaged index of common stock prices.

It is not possible to invest directly in an index.

High Basis – Shares acquired with the highest cost per share.

Convertible Equity – Convertible debt without the repayment feature at maturity or interest.

Price to Earnings Ratio – The price of a stock divided by its earnings.

Tangible Book – The value of a company by measuring its equity after removing any intangible assets. A company’s tangible book value looks at what common shareholders can expect to receive if the firm goes bankrupt and all of its assets are liquidated at their book values. Intangible assets, such as goodwill, are removed from this calculation because they cannot be sold during liquidation. Companies with high tangible book value per share provide shareholders with more insurance in case of bankruptcy.

Sovereign Debt – Bonds issued by a national government in a foreign currency, in order to finance the issuing country’s growth.

Outright Monetary Transactions (OMT) - is a program of the European Central Bank under which the bank makes purchases (“outright transactions”) in secondary, sovereign markets, under certain conditions, of bonds issued by Eurozone member-states.

Holdings are subject to change.

 *Only long positions are listed.