N-Q 1 a05-15320_1nq.htm N-Q

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number

811-21712

 

 

CLOUGH GLOBAL EQUITY FUND

(Exact name of registrant as specified in charter)

 

1625 Broadway, Suite 2200, Denver, Colorado

 

80202

(Address of principal executive offices)

 

(Zip code)

 

Erin Douglas
Clough Global Equity Fund
1625 Broadway, Suite 2200
Denver, Colorado 80202

(Name and address of agent for service)

 

Registrant's telephone number, including area code:

(303) 623-2577

 

 

Date of fiscal year end:

March 31

 

 

 

 

Date of reporting period:

June 30, 2005

 

 


 

Item 1 – Schedule of Investments.

 


 

CLOUGH GLOBAL EQUITY FUND

STATEMENT OF INVESTMENTS (Unaudited)

June 30, 2005

 

 

 

 

 

 

 

SHARES

 

VALUE

 

COMMON STOCKS

 

69.94

%

 

 

 

 

 

 

Consumer/Retail

 

2.63

%

 

 

 

 

 

 

DSW Inc.-Class A*

 

 

 

 

 

4,200

 

$

104,790

 

Kokuyo Co., Ltd.

 

 

 

 

 

224,500

 

3,028,286

 

Leapfrog Enterprises Inc.*

 

 

 

 

 

10,000

 

113,000

 

Lion Corp.

 

 

 

 

 

155,000

 

821,784

 

Nikon Corp.

 

 

 

 

 

83,000

 

939,976

 

Noritz Corp.

 

 

 

 

 

54,000

 

853,541

 

Tempur-Pedic International*

 

 

 

 

 

105,000

 

2,328,900

 

Wacoal Corp.

 

 

 

 

 

60,000

 

759,569

 

 

 

 

 

 

 

 

 

 

 

TOTAL CONSUMER/RETAIL

 

 

 

 

 

 

 

8,949,846

 

 

 

 

 

 

 

 

 

 

 

ENERGY

 

21.31

%

 

 

 

 

 

 

Coal

 

5.09

%

 

 

 

 

 

 

ALPHA Natural Resources Inc.*

 

 

 

 

 

73,400

 

1,752,792

 

Arch Coal Inc.

 

 

 

 

 

30,000

 

1,634,100

 

CONSOL Energy Inc.

 

 

 

 

 

34,800

 

1,864,584

 

Fording Canadian Coal Trust

 

 

 

 

 

41,300

 

3,807,860

 

KFx Inc.*

 

 

 

 

 

143,200

 

2,046,328

 

Massey Energy Co.

 

 

 

 

 

20,300

 

765,716

 

Peabody Energy Corp.

 

 

 

 

 

46,700

 

2,430,268

 

Penn Virginia Resources Partn.

 

 

 

 

 

32,700

 

1,563,714

 

Westmoreland Coal Co.*

 

 

 

 

 

71,200

 

1,465,296

 

 

 

 

 

 

 

 

 

 

 

TOTAL COAL

 

 

 

 

 

 

 

17,330,658

 

 

 

 

 

 

 

 

 

 

 

Exploration & Production

 

6.39

%

 

 

 

 

 

 

Amerada Hess Corp.

 

 

 

 

 

17,000

 

1,810,670

 

Anadarko Petroleum Corp.

 

 

 

 

 

14,000

 

1,150,100

 

Burlington Resources Inc.

 

 

 

 

 

31,400

 

1,734,536

 

Canadian Natural Resources

 

 

 

 

 

38,000

 

1,382,440

 

Chesapeake Energy Corp.

 

 

 

 

 

172,500

 

3,933,000

 

Compton Petroleum Corp.*

 

 

 

 

 

95,000

 

864,500

 

Delta Petroleum Corp.*

 

 

 

 

 

90,500

 

1,277,860

 

Encana Corp.

 

 

 

 

 

35,000

 

1,385,650

 

Murphy Oil Corp.

 

 

 

 

 

18,000

 

940,140

 

Nexen Inc.

 

 

 

 

 

38,000

 

1,153,680

 

Noble Energy Inc.

 

 

 

 

 

11,000

 

832,150

 

Petroquest Energy Inc.*

 

 

 

 

 

45,000

 

295,650

 

Plains Exploration & Product*

 

 

 

 

 

47,200

 

1,677,016

 

Suncor Energy Inc.

 

 

 

 

 

50,200

 

2,375,464

 

Talisman Energy Inc.

 

 

 

 

 

25,100

 

940,328

 

 

 

 

 

 

 

 

 

 

 

TOTAL EXPLORATION & PRODUCTION

 

 

 

 

 

 

 

21,753,184

 

 

 

 

 

 

 

 

 

 

 

Oil Services & Drillers

 

9.83

%

 

 

 

 

 

 

Atwood Oceanics Inc.*

 

 

 

 

 

25,700

 

1,582,092

 

Baker Hughes Inc.

 

 

 

 

 

40,000

 

2,046,400

 

Cooper Cameron Corp.*

 

 

 

 

 

33,500

 

2,078,675

 

Diamond Offshore Drilling

 

 

 

 

 

40,500

 

2,163,915

 

ENSCO International Inc.

 

 

 

 

 

21,300

 

761,475

 

FMC Technologies Inc.*

 

 

 

 

 

42,200

 

1,349,134

 

Global SantaFe Corp.

 

 

 

 

 

42,500

 

1,734,000

 

Grant Prideco Inc.*

 

 

 

 

 

84,400

 

2,232,380

 

Halliburton Co.

 

 

 

 

 

30,500

 

1,458,510

 

Key Energy Services Inc.*

 

 

 

 

 

52,000

 

627,640

 

Maverick Tube Corp.*

 

 

 

 

 

45,000

 

1,341,000

 

Nabors Industries Ltd.*

 

 

 

 

 

36,900

 

2,236,878

 

National - Oilwell Inc.*

 

 

 

 

 

62,300

 

2,961,742

 

Noble Corp.

 

 

 

 

 

44,000

 

2,706,440

 

Patterson Utility Energy Inc.

 

 

 

 

 

48,200

 

1,341,406

 

Rowan Companies Inc.

 

 

 

 

 

20,000

 

594,200

 

Schlumberger Ltd.

 

 

 

 

 

32,700

 

2,483,238

 

Tetra Technologies Inc.*

 

 

 

 

 

27,300

 

869,505

 

 


 

TODCO - Class A *

 

 

 

 

 

55,000

 

1,411,850

 

Transocean Inc.*

 

 

 

 

 

28,000

 

1,511,160

 

 

 

 

 

 

 

 

 

 

 

TOTAL OIL SERVICES & DRILLERS

 

 

 

 

 

 

 

33,491,640

 

 

 

 

 

 

 

 

 

 

 

TOTAL ENERGY

 

 

 

 

 

 

 

72,575,482

 

 

 

 

 

 

 

 

 

 

 

Finance

 

10.80

%

 

 

 

 

 

 

ACOM Co., Ltd.

 

 

 

 

 

13,700

 

878,292

 

Aiful Corp.

 

 

 

 

 

12,100

 

902,277

 

Apollo Investment Corp.

 

 

 

 

 

128,600

 

2,370,098

 

Bank of Yokohama Ltd.

 

 

 

 

 

430,000

 

2,485,280

 

Brookline Bancorp, Inc.

 

 

 

 

 

42,500

 

691,050

 

Daiwa Securities Group Inc.

 

 

 

 

 

150,000

 

927,821

 

Fidelity Bankshares, Inc.

 

 

 

 

 

27,900

 

739,908

 

Icici Bank Ltd.-Spon ADR

 

 

 

 

 

45,400

 

991,990

 

Joyo Bank Ltd.

 

 

 

 

 

598,000

 

2,922,465

 

KKR Financial Corp.*

 

 

 

 

 

94,100

 

2,352,500

 

MCG Capital Corp.

 

 

 

 

 

125,000

 

2,135,000

 

Merrill Lynch & Co. Inc.

 

 

 

 

 

82,400

 

4,532,824

 

Mitsubishi Tokyo Financial - ADR

 

 

 

 

 

330,000

 

2,798,400

 

NewAlliance Bancshares, Inc.

 

 

 

 

 

64,800

 

910,440

 

Nikko Cordial Corp.

 

 

 

 

 

170,000

 

748,028

 

Nissin Co. Ltd.

 

 

 

 

 

1,000,000

 

1,875,479

 

Nomura Holdings Inc - ADR

 

 

 

 

 

177,000

 

2,115,150

 

Promise Co Ltd.

 

 

 

 

 

13,000

 

833,416

 

Shizuoka Bank Ltd.

 

 

 

 

 

346,000

 

2,973,157

 

Sovereign Bancorp, Inc.

 

 

 

 

 

38,500

 

860,090

 

Waddell & Reed Financial-A

 

 

 

 

 

93,600

 

1,731,600

 

 

 

 

 

 

 

 

 

 

 

TOTAL FINANCE

 

 

 

 

 

 

 

36,775,265

 

 

 

 

 

 

 

 

 

 

 

Healthcare

 

1.58

%

 

 

 

 

 

 

Biosphere Medical Inc.*

 

 

 

 

 

121,100

 

544,950

 

Pfizer Inc.

 

 

 

 

 

34,600

 

954,268

 

Sepracor Inc.*

 

 

 

 

 

50,000

 

3,000,500

 

Takeda Pharmaceutical Co.

 

 

 

 

 

18,000

 

892,656

 

 

 

 

 

 

 

 

 

 

 

TOTAL HEALTHCARE

 

 

 

 

 

 

 

5,392,374

 

 

 

 

 

 

 

 

 

 

 

Industrial

 

5.62

%

 

 

 

 

 

 

American Science & Engineering Inc.*

 

 

 

 

 

69,000

 

3,060,840

 

Bridgestone Corp.

 

 

 

 

 

35,000

 

673,775

 

Georgia Gulf Corp.

 

 

 

 

 

122,000

 

3,788,100

 

Insituform Technologies-CL A*

 

 

 

 

 

85,300

 

1,367,359

 

Jacobs Engineering Group Inc.*

 

 

 

 

 

41,800

 

2,351,668

 

Kansas City Southern*

 

 

 

 

 

32,700

 

659,886

 

Maruichi Steel Tube Ltd.

 

 

 

 

 

40,000

 

858,392

 

Nisshinbo Industries Inc.

 

 

 

 

 

110,000

 

900,591

 

Nova Chemicals Corp.

 

 

 

 

 

99,900

 

3,052,944

 

Pall Corp.

 

 

 

 

 

30,300

 

919,908

 

Sasol LTD-Sponsored ADR.

 

 

 

 

 

12,000

 

323,760

 

Willbros Group Inc.*

 

 

 

 

 

83,300

 

1,192,856

 

 

 

 

 

 

 

 

 

 

 

TOTAL INDUSTRIAL

 

 

 

 

 

 

 

19,150,079

 

 

 

 

 

 

 

 

 

 

 

Insurance

 

7.14

%

 

 

 

 

 

 

Ace Ltd.

 

 

 

 

 

58,300

 

2,614,755

 

Aflac Inc.

 

 

 

 

 

15,000

 

649,200

 

Allmerica Financial Corp.*

 

 

 

 

 

34,600

 

1,283,314

 

Arch Capital Group Ltd.*

 

 

 

 

 

21,700

 

977,585

 

Bristol West Holdings Inc.

 

 

 

 

 

160,400

 

2,935,320

 

IPC Holdings Ltd.

 

 

 

 

 

54,200

 

2,147,404

 

Montpelier Re Holdings Ltd.

 

 

 

 

 

38,700

 

1,338,246

 

Partnerre Ltd.

 

 

 

 

 

47,700

 

3,072,834

 

Progressive Corp.

 

 

 

 

 

10,000

 

988,100

 

Renaissancere Holdings Ltd.

 

 

 

 

 

100,000

 

4,924,000

 

St. Paul Travelers Cos Inc.

 

 

 

 

 

50,000

 

1,976,500

 

XL Capital Ltd.

 

 

 

 

 

19,100

 

1,421,422

 

 

 

 

 

 

 

 

 

 

 

TOTAL INSURANCE

 

 

 

 

 

 

 

24,328,680

 

 


 

Media

 

1.89

%

 

 

 

 

 

 

Asahi Broadcasting

 

 

 

 

 

1,000

 

88,093

 

Matsushita Electric Ind.

 

 

 

 

 

175,000

 

2,655,651

 

Mobile Telesystems - ADR

 

 

 

 

 

60,200

 

2,025,730

 

Nippon Broadcasting

 

 

 

 

 

20,050

 

1,135,332

 

Shanda Interactive Enter-Ads*

 

 

 

 

 

15,000

 

551,850

 

 

 

 

 

 

 

 

 

 

 

TOTAL MEDIA

 

 

 

 

 

 

 

6,456,656

 

 

 

 

 

 

 

 

 

 

 

Metals

 

3.99

%

 

 

 

 

 

 

APEX Silver Mines Ltd.*

 

 

 

 

 

104,000

 

1,428,960

 

Cameco Corp.

 

 

 

 

 

42,100

 

1,883,975

 

Ivanhoe Mines Ltd.*

 

 

 

 

 

187,700

 

1,458,429

 

Olin Corp.

 

 

 

 

 

225,900

 

4,120,416

 

Oregon Steel Mills Inc.*

 

 

 

 

 

123,600

 

2,127,156

 

Pan American Silver Corp.*

 

 

 

 

 

52,500

 

776,475

 

Phelps Dodge Corp.

 

 

 

 

 

12,500

 

1,156,250

 

Western Silver Corp.*

 

 

 

 

 

73,500

 

639,450

 

 

 

 

 

 

 

 

 

 

 

TOTAL METALS

 

 

 

 

 

 

 

13,591,111

 

 

 

 

 

 

 

 

 

 

 

Real Estate Investment Trust

 

2.01

%

 

 

 

 

 

 

Goldcrest Co. Ltd.

 

 

 

 

 

11,000

 

618,908

 

Host Marriott Corp.

 

 

 

 

 

151,000

 

2,642,500

 

Mortgageit Holdings Inc.

 

 

 

 

 

50,000

 

912,500

 

Sunstone Hotel Investors Inc.

 

 

 

 

 

68,400

 

1,659,384

 

Trustreet Properties Inc.

 

 

 

 

 

61,500

 

1,021,515

 

 

 

 

 

 

 

 

 

 

 

TOTAL REAL ESTATE INVESTMENT TRUST

 

 

 

 

 

 

 

6,854,807

 

 

 

 

 

 

 

 

 

 

 

Technology

 

1.24

%

 

 

 

 

 

 

Avnet Inc.*

 

 

 

 

 

40,000

 

901,200

 

Magal Security Systems Ltd.*

 

 

 

 

 

128,676

 

1,015,254

 

Rackable Systems Inc.*

 

 

 

 

 

124,700

 

1,496,400

 

Radvision Ltd.*

 

 

 

 

 

61,600

 

818,664

 

 

 

 

 

 

 

 

 

 

 

TOTAL TECHNOLOGY

 

 

 

 

 

 

 

4,231,518

 

 

 

 

 

 

 

 

 

 

 

Transportation

 

0.78

%

 

 

 

 

 

 

East Japan Railway Co.

 

 

 

 

 

150

 

770,930

 

Golar LNG, Ltd.*

 

 

 

 

 

15,000

 

180,000

 

Kamigui Co. Ltd.

 

 

 

 

 

220,000

 

1,698,030

 

 

 

 

 

 

 

 

 

 

 

TOTAL TRANSPORTATION

 

 

 

 

 

 

 

2,648,960

 

 

 

 

 

 

 

 

 

 

 

Utilities

 

10.95

%

 

 

 

 

 

 

AES Corp.*

 

 

 

 

 

150,200

 

2,460,276

 

Ameren Corp.

 

 

 

 

 

46,700

 

2,582,510

 

British Energy Group PLC*

 

 

 

 

 

391,800

 

2,856,985

 

Duke Energy Corp.

 

 

 

 

 

155,000

 

4,608,150

 

Entergy Corp.

 

 

 

 

 

26,700

 

2,017,185

 

Exelon Corp.

 

 

 

 

 

49,200

 

2,525,436

 

Northeast Utilities

 

 

 

 

 

94,100

 

1,962,926

 

PG&E Corp.

 

 

 

 

 

55,000

 

2,064,700

 

PPL Corp.

 

 

 

 

 

40,000

 

2,375,200

 

Progress Energy, Inc.

 

 

 

 

 

5,400

 

244,296

 

Public Service Enterprise

 

 

 

 

 

93,400

 

5,680,588

 

Southern Co.

 

 

 

 

 

62,000

 

2,149,540

 

Southern Union Co.*

 

 

 

 

 

78,900

 

1,936,995

 

TXU Corp.

 

 

 

 

 

25,000

 

2,077,250

 

Williams Cos., Inc.

 

 

 

 

 

92,100

 

1,749,900

 

 

 

 

 

 

 

 

 

 

 

TOTAL UTILITIES

 

 

 

 

 

 

 

37,291,937

 

 

 

 

 

 

 

 

 

 

 

TOTAL COMMON STOCKS
(Cost $229,645,369)

 

 

 

 

 

 

 

238,246,715

 

 


 

EXCHANGE TRADED FUNDS

 

6.12

%

 

 

 

 

 

 

iShares

 

 

 

 

 

 

 

 

 

DJ Select

 

 

 

 

 

32,000

 

1,975,360

 

MSCI Brazil

 

 

 

 

 

50,000

 

1,241,000

 

MSCI Canada

 

 

 

 

 

90,000

 

1,633,500

 

MSCI Emerging Markets.

 

 

 

 

 

33,000

 

2,362,800

 

MSCI Hong Kong

 

 

 

 

 

306,200

 

3,803,004

 

MSCI Japan

 

 

 

 

 

125,000

 

1,267,500

 

MSCI Malaysia

 

 

 

 

 

203,600

 

1,408,912

 

MSCI Taiwan

 

 

 

 

 

125,000

 

1,512,500

 

S&P 100

 

 

 

 

 

25,000

 

1,395,750

 

S&P 500

 

 

 

 

 

20,000

 

2,381,400

 

S&P Latin America

 

 

 

 

 

20,000

 

1,858,600

 

 

 

 

 

 

 

 

 

 

 

TOTAL EXCHANGE TRADED FUNDS
(Cost $20,956,307)

 

 

 

 

 

 

 

20,840,326

 

 

 

 

 

 

 

 

 

 

 

PREFERRED STOCK

 

1.07

%

 

 

 

 

 

 

XL Capital Ltd.

 

 

 

 

 

152,000

 

3,640,400

 

 

 

 

 

 

 

 

 

 

 

TOTAL PREFERRED STOCK
(Cost $3,586,501)

 

 

 

 

 

 

 

3,640,400

 

 

 

 

 

 

 

 

 

 

 

MONEY MARKET MUTUAL FUNDS

 

9.22

%

 

 

 

 

 

 

J.P. Morgan Prime Money Market Fund

 

 

 

 

 

15,402,185

 

15,402,185

 

Merrill Lynch Premier Instl

 

 

 

 

 

16,000,000

 

16,000,000

 

 

 

 

 

 

 

 

 

 

 

TOTAL MONEY MARKET MUTUAL FUNDS
(Cost $31,402,185)

 

 

 

 

 

 

 

31,402,185

 

 

 

 

 

 

 

 

 

 

 

CLOSED-END FUNDS

 

0.48

%

 

 

 

 

 

 

India Fund Inc.

 

 

 

 

 

55,000

 

1,641,750

 

 

 

 

 

 

 

 

 

 

 

TOTAL CLOSED-END FUNDS
(Cost $1,684,259)

 

 

 

 

 

 

 

1,641,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coupon

 

Principal Amount

 

 

 

U.S. GOVERNMENT & AGENCY OBLIGATIONS

 

14.77

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States Treasury Bond

 

 

 

 

 

 

 

 

 

2/15/2031

 

 

 

5.375

%

$

6,000,000

 

7,081,878

 

United States Treasury Notes

 

 

 

 

 

 

 

 

 

5/15/2008

 

 

 

3.750

%

11,000,000

 

11,027,511

 

5/15/2009

 

 

 

3.875

%

11,000,000

 

11,067,034

 

5/15/2020

 

 

 

3.875

%

21,000,000

 

21,126,336

 

 

 

 

 

 

 

 

 

43,220,881

 

 

 

 

 

 

 

 

 

 

 

TOTAL U.S. GOVERNMENT & AGENCY OBLIGATIONS
(Cost $50,199,264)

 

 

 

 

 

 

 

50,302,759

 

 

 

 

 

 

 

 

 

 

 

TOTAL INVESTMENTS
(Cost $337,473,885)

 

101.60

%

 

 

 

 

346,074,135

 

Liabilities in Excess of Other Assets

 

-1.60

%

 

 

 

 

(5,451,922

)

NET ASSETS

 

100.00

%

 

 

 

 

$

340,622,213

 

 

*Non-income producing security

 

 

 

 

 

 

 

 

 

ADR - American Depositary Receipt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Tax Information:

 

 

 

 

 

 

 

 

 

Net unrealized appreciation/depreciation of investments based on federal tax costs were as follows:

 

 

As of June 30, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross appreciation (excess of value over tax cost)

 

 

 

 

 

$

10,714,030

 

 

 

Gross depreciation (excess of tax cost over value)

 

 

 

 

 

(2,529,298

)

 

 

Net unrealized appreciation

 

 

 

 

 

$

8,184,732

 

 

 

Cost of investments for income tax purposes

 

 

 

 

 

$

337,889,403

 

 

 

 


 

SCHEDULE OF SECURITIES SOLD SHORT

 

NAME

 

SHARES

 

VALUE

 

AON Corp.

 

(5,000

)

$

(125,200

)

AVON Products

 

(16,000

)

(605,600

)

Capital One Financial Corp.

 

(18,300

)

(1,464,183

)

Factset Research Systems Inc.

 

(50,300

)

(1,802,752

)

Fastenal Co.

 

(27,400

)

(1,678,524

)

HNI Corp.

 

(10,000

)

(511,500

)

Marsh & McLennan Cos.

 

(48,700

)

(1,348,990

)

Panera Bread Company - Class A *

 

(25,500

)

(1,583,168

)

Polaris Industries Inc.

 

(20,000

)

(1,080,000

)

Retail HOLDRs Trust

 

(22,100

)

(2,116,075

)

SLM Corp.

 

(13,500

)

(685,800

)

Station Casinos Inc.

 

(5,000

)

(332,000

)

Toro Co.

 

(18,200

)

(702,702

)

Washington Mutual

 

(10,000

)

(406,900

)

Winnebago Industries

 

(9,100

)

(298,025

)

Yankee Candle Co. Inc.

 

(21,300

)

(683,730

)

 

 

 

 

 

 

TOTAL SECURITIES SOLD SHORT

 

 

 

 

 

 

(Proceeds $15,239,159)

 

 

 

$

(15,425,149

)

 

SEE NOTES TO QUARTERLY STATEMENT OF INVESTMENTS

 


 

Notes to Quarterly Statement of Investments

 

1. SIGNIFICANT ACCOUNTING AND OPERATING POLICIES

 

Clough Global Equity Fund is a closed-end management investment company (the “Fund”) that was organized under the laws of the state of Delaware by an Agreement and Declaration of Trust dated January 25, 2005. The Fund is a non-diversified series with an investment objective to provide a high level of total return. The Declaration of Trust provides that the Trustees may authorize separate classes of shares of beneficial interest.

 

Security Valuation: The net asset value per Share of the Fund is determined no less frequently than daily, on each day that the American Stock Exchange (the “Exchange”) is open for trading, as of the close of regular trading on the Exchange (normally 4:00 p.m. New York time). Trading may take place in foreign issues held by the Fund at times when the Fund is not open for business. As a result, the Fund’s net asset value may change at times when it is not possible to purchase or sell shares of the Fund. Securities held by the fund for which exchange quotations are readily available are valued at the last sale price, or if no sale price or if traded on the over-the-counter market, at the mean of the bid and asked prices on such day. Over-the-counter securities traded on NASDAQ are valued based upon the closing price. Debt securities for which the over-the-counter market is the primary market are normally valued on the basis of prices furnished by one or pricing services at the mean between the latest available bid and asked prices. As authorized by the Trustees, debt securities (other than short-term obligations) may be valued on the basis of valuations furnished by a pricing service which determines valuations based upon market transactions for normal, institutional-size trading units of securities. Short-term obligations maturing within 60 days are valued at amortized cost, which approximates value, unless the Trustees determine that under particular circumstances such method does not result in fair value. Over-the-counter options are valued at the mean between bid and asked prices provided by dealers. Financial futures contracts listed on commodity exchanges and exchange-traded options are valued at closing settlement prices. Securities for which there is no such quotation or valuation and all other assets are valued at fair value in good faith by or at the direction of the Trustees.

 

Foreign Securities: The Fund may invest a portion of its assets in foreign securities. In the event that the Fund executes a foreign security transaction, the Fund will generally enter into a forward foreign currency contract to settle the foreign security transaction. Foreign securities may carry more risk than U.S. securities, such as political, market and currency risks. The accounting records of the Fund are maintained in U.S. dollars. Prices of securities denominated in foreign currencies are translated into U.S. dollars at the closing rates of exchange at period end. Amounts related to the purchase and sale of foreign securities and investment income are translated at the rates of exchange prevailing on the respective dates of such transactions.

 

Options: The Fund may purchase or write (sell) put and call options. One of the risks associated with purchasing an option among others, is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of premium and change in market value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid.

 

When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current value of the option written. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or, if the premium is less than the amount paid for the closing purchase transaction, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security or currency in determining whether the Fund has realized a gain or loss. If a put option is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the security underlying the written option. Written and purchased options are non- income producing securities.

 

Short Sales: The Fund may sell a security it does not own in anticipation of a decline in the fair value of that security. When the Fund sells a security short, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale. A gain, limited to the price at which the Fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of the short sale.

 

Securities Transactions and Investment Income: Investment security transactions are accounted for as of trade date. Dividend income is recorded on the ex-dividend date. Interest income, which includes amortization of premium and accretion of discount, is accrued as earned. Realized gains and losses from securities transactions and unrealized appreciation and depreciation of securities are determined using the highest cost basis for both financial reporting and income tax purposes.

 


 

Item 2 - Controls and Procedures.

 

(a)                                  The registrant’s Principal Executive Officer and Principal Financial Officer have evaluated the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) within 90 days of this filing and have concluded that the registrant’s disclosure controls and procedures were effective, as of that date.

 

(b)                                 There was no change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) during registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3 – Exhibits.

 

Separate certifications for the registrant’s Principal Executive Officer and Principal Financial Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached as Ex99.CERT.

 


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

CLOUGH GLOBAL EQUITY FUND

 

 

 

By:

/s/ Edmund J. Burke

 

 

 

Edmund J. Burke

 

 

President (principal executive officer)

 

 

 

 

Date:

August 29, 2005

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By:

/s/ Edmund J. Burke

 

 

 

Edmund J. Burke

 

 

President (principal executive officer)

 

 

 

Date:

August 29, 2005

 

 

 

 

 

By:

/s/ Jeremy O. May

 

 

Jeremy O. May

 

Treasurer (principal financial officer)

 

 

 

Date:

August 29, 2005