Clough Global Allocation Fund's auction market preferred shares series W28 are rated 'AAA' by Fitch Ratings. The ratings are based on asset coverage and preferred share basic maintenance amount tests, as well as the quality and experience of the asset manager.
Clough Global Allocation Fund (AMEX:GLV) is a closed-end management investment company that invests in stocks, bonds and other investments in both the United States and globally. The main objective of the fund is to provide a high level of total return, consisting of dividend and interest income as well as capital appreciation. The fund is registered under the Investment Company Act of 1940, which permits closed-end funds to borrow up to 50% of a fund's total value through the issuance of preferred shares and debt. The fund's total leverage from the issuance of preferred shares is approximately 33% of its total assets and it has no outstanding debt.
Clough Capital Partners, the investment advisor of the firm, is a Boston-based investment advisory firm that manages approximately $295 million in the fund and approximately $305 million in hedge funds and separately managed accounts. The firm uses a global and theme-based investment approach based to identify chronic shortages and growth opportunities. For fixed income, they believe changing economic fundamentals help reveal potential global credit market opportunities based primarily on flow of capital in to or out of a country. Clough Capital Partners was founded in 2000 by Chuck Clough and partners James Canty and Eric Brock. The three are the portfolio managers for the Clough Global Allocation Fund.
Denver-based ALPS Mutual Funds Services, Inc. is the fund's sponsor and administrator. The firm manages the fund's business affairs, calculates daily NAVs and provides marketing services. ALPS' fund administration clients manage over $9 billion worth of investments and their distribution clients manage over $105 billion.
The preferred shares issued on Dec. 1, 2004 are comprised of 3,800 shares, raising an additional $95,000,000 for the fund (before payment of sales load and estimated offering costs).