N-Q 1 t1600083_nq.htm FORM 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: 811-22051

 

Voya International High Dividend Equity Income Fund

(Exact name of registrant as specified in charter)

 

7337 East Doubletree Ranch Rd., Suite 100, Scottsdale, AZ 85258

(Address of principal executive offices) (Zip code)

 

Huey P. Falgout, Jr., 7337 East Doubletree Ranch Road, Suite 100, Scottsdale, AZ 85258

(Name and address of agent for service)

 

Registrant’s telephone number, including area code: 1-800-992-0180

 

Date of fiscal year end: February 28

 

Date of reporting period: November 30, 2015

 

 

 

 

 

  

Item 1. Schedule of Investments

 

The schedules of investments as of the close of the reporting period are set forth below for:

 

Voya International High Dividend Equity Income Fund

 

The schedules are not audited.

 

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya International High Dividend Equity Income Fund  as of November 30, 2015 (Unaudited)

 

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: 96.4%          
      Australia: 8.5%          
13,303     Australia & New Zealand Banking Group Ltd.  $261,067    0.4 
28,027     BHP Billiton Ltd.   372,678    0.6 
42,582     Coca-Cola Amatil Ltd.   277,781    0.5 
62,659     Goodman Group   276,024    0.5 
123,076     Incitec Pivot Ltd.   335,223    0.5 
81,535     Insurance Australia Group Ltd.   325,723    0.5 
141,820     Metcash Ltd.   151,008    0.2 
13,741     National Australia Bank Ltd.   291,389    0.5 
211,582     Nine Entertainment Co. Holdings Ltd.   253,525    0.4 
7,668     Rio Tinto Ltd.   255,329    0.4 
47,892     Santos Ltd.   138,710    0.2 
281,895     Sigma Pharmaceuticals Ltd.   177,263    0.3 
28,027  @  South32 Ltd. - AUD   24,126    0.0 
32,633  @  Spark Infrastructure Group   44,135    0.1 
254,536     Spark Infrastructure Group - Stapled Security   348,902    0.6 
96,542     Stockland   278,566    0.5 
35,142     Suncorp Group Ltd   339,374    0.6 
2,194  @  Transurban Group   16,454    0.0 
39,486     Transurban Group - Stapled Security   295,919    0.5 
27,092     Treasury Wine Estates Ltd.   147,559    0.2 
151,163     Vicinity Centres   295,678    0.5 
13,880     Westpac Banking Corp.   321,919    0.5 
          5,228,352    8.5 
                 
      Belgium: 0.3%          
3,623     Ageas   158,511    0.3 
                 
      China: 10.0%          
45,500     Beijing Enterprises Holdings Ltd.   284,242    0.5 
81,500     BOC Hong Kong Holdings Ltd.   249,800    0.4 
838,000     China BlueChemical Ltd.   227,649    0.4 
788,380     China Construction Bank   543,049    0.9 
139,000     China Life Insurance Co., Ltd.   480,299    0.8 
60,000     China Merchants Bank Co., Ltd.   140,976    0.2 
132,000     China Overseas Land & Investment Ltd.   437,179    0.7 
1  @  China Overseas Property Holdings Ltd.   –    – 
397,400     China Petroleum & Chemical Corp.   245,724    0.4 
620,000     China Resources Cement Holdings Ltd.   201,722    0.3 
138,000     China Resources Power Holdings Co.   259,516    0.4 
210,000     China Unicom Hong Kong Ltd.   260,707    0.4 
258,000     COSCO Pacific Ltd.   317,576    0.5 
Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)          
      China: (continued)          
670,000       Datang International Power Generation Co., Ltd.  $215,576    0.4 
27,500     Hengan International Group Co., Ltd.   277,372    0.5 
1,017,258     Industrial & Commercial Bank of China   616,270    1.0 
152,000     Jiangsu Expressway Co. Ltd.   197,490    0.3 
604,500     Parkson Retail Group Ltd.   77,657    0.1 
320,000     PetroChina Co., Ltd.   226,737    0.4 
123,000     Shanghai Industrial Holdings Ltd.   321,510    0.5 
140,400     Shanghai Pharmaceuticals Holding Co. Ltd.   307,945    0.5 
165,500     Shimao Property Holdings Ltd.   276,044    0.4 
          6,165,040    10.0 
                 
      Denmark: 0.4%          
79     AP Moller - Maersk A/S - Class B   120,249    0.2 
24,636     TDC A/S   129,181    0.2 
          249,430    0.4 
                 
      France: 10.2%          
7,152     Alstom SA   222,136    0.4 
26,686     AXA S.A.   721,074    1.2 
11,346     BNP Paribas   671,736    1.1 
15,931     Carrefour S.A.   490,997    0.8 
6,575     Casino Guichard Perrachon S.A.   375,634    0.6 
8,072     Cie de Saint-Gobain   356,167    0.6 
5,773     Eutelsat Communications   172,213    0.3 
14,194     Orange SA   245,054    0.4 
44,104     Engie SA   767,858    1.2 
2,572     Danone   179,855    0.3 
8,595     Metropole Television SA   159,592    0.3 
8,691     Sanofi   772,404    1.2 
10,498     Total S.A.   519,842    0.8 
9,909     Vinci S.A.   643,699    1.0 
          6,298,261    10.2 
                 
      Germany: 3.0%          
1,855     Adidas AG   179,166    0.3 
5,023     Daimler AG   448,370    0.7 
9,597     Deutsche Telekom AG   176,880    0.3 
34,359     E.ON AG   325,968    0.5 
2,107     Muenchener Rueckversicherungs-Gesellschaft AG   423,681    0.7 
3,940     SAP SE   311,140    0.5 
          1,865,205    3.0 
                 
      Hong Kong: 3.2%          
129,540     AIA Group Ltd.   773,460    1.2 
2,470,000     Emperor Watch & Jewellery Ltd.   63,005    0.1 

 

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya International High Dividend Equity Income Fund  as of November 30, 2015 (Unaudited) (Continued)

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)          
      Hong Kong: (continued)          
129,000      Hang Lung Properties Ltd.  $302,340    0.5 
840,000     Hutchison Telecommunications Hong Kong Holdings Ltd.   292,563    0.5 
433     Link REIT   2,628    0.0 
63,000     MTR Corp.   292,515    0.5 
57,400     Television Broadcasts Ltd.   230,878    0.4 
          1,957,389    3.2 
                 
      India: 3.4%          
58,624     GAIL India Ltd.   321,707    0.5 
83,697     ICICI Bank Ltd.   345,777    0.6 
55,399     ITC Ltd.   284,567    0.5 
157,921     NTPC Ltd.   310,557    0.5 
113,600     Punjab National Bank   246,955    0.4 
22,861     Reliance Industries Ltd.   331,443    0.5 
69,429     Tata Steel Ltd.   239,415    0.4 
          2,080,421    3.4 
                 
      Indonesia: 0.6%          
220,200     Indo Tambangraya Megah PT   107,559    0.2 
701,200     Indofood Sukses Makmur Tbk PT   246,625    0.4 
          354,184    0.6 
                 
      Ireland: 1.0%          
21,655     CRH PLC - Dublin   635,928    1.0 
                 
      Italy: 3.6%          
29,705     Assicurazioni Generali S.p.A.   564,261    0.9 
128,914     Enel S.p.A.   567,801    0.9 
9,922     ENI S.p.A.   161,365    0.3 
102,460     Intesa Sanpaolo SpA - ISP   351,120    0.6 
7,911     Prysmian S.p.A.   172,812    0.3 
65,429     UniCredit SpA   383,417    0.6 
          2,200,776    3.6 
                 
      Macau: 0.5%          
86,646     Sands China Ltd.   291,911    0.5 
                 
      Malaysia: 1.2%          
256,728     Berjaya Sports Toto BHD   186,044    0.3 
371,600     IJM Corp. Bhd   296,811    0.5 
135,200     Malayan Banking BHD   263,801    0.4 
          746,656    1.2 
                 
      Netherlands: 1.9%          
6,302     Koninklijke DSM NV   320,378    0.5 
33,232     Royal Dutch Shell PLC - Class B   826,721    1.4 
          1,147,099    1.9 
                 
      Norway: 0.7%          
26,067     Statoil ASA   401,283    0.7 
                 
      Singapore: 0.5%          
224,700     First Resources Ltd.   316,498    0.5 
Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)          
      South Korea: 5.3%          
33,332      DGB Financial Group, Inc.  $299,088    0.5 
16,808     Hite Jinro Co. Ltd.   350,279    0.6 
9,443     Hyundai Marine & Fire Insurance Co., Ltd.   276,259    0.4 
10,558     KB Financial Group, Inc.   321,177    0.5 
13,420     KT Corp.   349,013    0.6 
6,551     LG Display Co., Ltd.   144,309    0.2 
1,443     POSCO   210,973    0.3 
593     Samsung Electronics Co., Ltd.   656,417    1.1 
9,424     Shinhan Financial Group Co., Ltd.   338,353    0.6 
2,708     SK Innovation Co. Ltd.   297,716    0.5 
          3,243,584    5.3 
                 
      Spain: 2.6%          
14,309     Abertis Infraestructuras S.A.   221,170    0.4 
24,054     Banco Santander SA   130,903    0.2 
17,528     Ebro Foods SA   335,364    0.5 
13,695     Indra Sistemas S.A.   140,404    0.2 
24,293     Prosegur Cia de Seguridad SA   108,507    0.2 
53,125     Telefonica S.A.   653,839    1.1 
          1,590,187    2.6 
                 
      Sweden: 2.4%          
13,062     Telefonaktiebolaget LM Ericsson   126,792    0.2 
31,814     SSAB Svenskt Staal AB - Class A   109,922    0.2 
8,015     Svenska Cellulosa AB SCA   230,667    0.4 
107,590     TeliaSonera AB   528,770    0.8 
47,858     Volvo AB - B Shares   494,035    0.8 
          1,490,186    2.4 
                 
      Switzerland: 7.2%          
8,760     Credit Suisse Group AG   188,253    0.3 
3,998     LafargeHolcim Ltd.   213,565    0.3 
10,734     Nestle S.A.   795,596    1.3 
5,950     Novartis AG   507,608    0.8 
2,955     Roche Holding AG   791,529    1.3 
180     SGS S.A.   344,335    0.6 
2,062     Syngenta AG   759,434    1.2 
28,198     UBS Group AG   540,910    0.9 
1,129     Zurich Insurance Group AG   297,147    0.5 
          4,438,377    7.2 
                 
      Taiwan: 3.8%          
194,000     Cathay Financial Holding Co., Ltd.   271,351    0.4 
79,000     Cheng Uei Precision Industry Co., Ltd.   102,774    0.2 
556,280     CTBC Financial Holding Co. Ltd.   291,313    0.5 
23,612     MediaTek, Inc.   188,164    0.3 
164,000     Powertech Technology, Inc.   353,916    0.6 
129,000     Quanta Computer, Inc.   201,545    0.3 

 

 

 

  

  PORTFOLIO OF INVESTMENTS
Voya International High Dividend Equity Income Fund  as of November 30, 2015 (Unaudited) (Continued)

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)          
      Taiwan: (continued)          
50,000     Radiant Opto-Electronics Corp.  $130,507    0.2 
165,624     Taiwan Semiconductor Manufacturing Co., Ltd.   708,723    1.2 
31,000     TPK Holding Co. Ltd.   87,903    0.1 
          2,336,196    3.8 
                 
      Thailand: 0.4%          
37,000     PTT PCL-Foreign   263,895    0.4 
                 
      United Kingdom: 14.9%          
2,628     AstraZeneca PLC   178,318    0.3 
59,342     Aviva PLC   457,147    0.7 
171,442     Barclays PLC   576,476    0.9 
50,238     BP PLC   290,346    0.5 
18,661     Diageo PLC   535,218    0.9 
39,003     GlaxoSmithKline PLC   792,658    1.3 
121,222     HSBC Holdings PLC (GBP)   967,214    1.6 
38,800     HSBC Holdings PLC (HKD)   309,384    0.5 
170,325     J Sainsbury PLC   650,827    1.1 
117,541     Kingfisher PLC   624,999    1.0 
344,788     Lloyds Banking Group Plc   378,621    0.6 
76,353     Mitie Group PLC   366,564    0.6 
68,699     Premier Farnell PLC   107,088    0.2 
13,095     Rio Tinto PLC   433,584    0.7 
1,227,069  @  Rolls-Royce Holdings Entitlement   1,848    0.0 
13,237     Rolls-Royce Holdings PLC   120,764    0.2 
60,540     RSA Insurance Group PLC   401,387    0.6 
13,986     SSE PLC   301,677    0.5 
32,508     Segro PLC   215,790    0.3 
17,240     Smiths Group PLC   267,846    0.4 
14,639     Standard Chartered PLC   122,753    0.2 
54,799     Tate & Lyle PLC   486,101    0.8 
29,973     UBM PLC   228,303    0.4 
15,615     WPP PLC   360,872    0.6 
          9,175,785    14.9 
                 
      United States: 10.8%          
16,313     AT&T, Inc.   549,259    0.9 
11,591     Bristol-Myers Squibb Co.   776,713    1.3 
13,698     Dow Chemical Co.   714,077    1.2 
23,765     Intel Corp.   826,309    1.3 
12,500     JPMorgan Chase & Co.   833,500    1.4 
7,341     Kraft Heinz Co.   540,958    0.9 
9,075     Philip Morris International, Inc.   793,064    1.3 
25,600     Starwood Property Trust, Inc.   520,448    0.8 
17,487     Teekay LNG Partners L.P.   396,955    0.6 
9,205     Valero Energy Corp.   661,471    1.1 
          6,612,754    10.8 
                 
   Total Common Stock          
   (Cost $68,325,061)   59,247,908    96.4 
Shares        Value   Percentage
of Net
Assets		 
PREFERRED STOCK: 2.0%          
      Brazil: 0.4%          
125,004     Cia Energetica de Minas Gerais  $213,240    0.4 
                 
      Germany: 0.6%          
2,521     Volkswagen AG   349,427    0.6 
                 
      South Korea: 1.0%          
856     Hyundai Motor Co.   81,966    0.1 
2,271     Hyundai Motor Co.- Series 2   218,426    0.3 
363     Samsung Electronics Co., Ltd.   343,201    0.6 
          643,593    1.0 
                 
   Total Preferred Stock          
   (Cost $1,922,710)   1,206,260    2.0 
                 
RIGHTS: 0.0%          
      Australia: 0.0%          
32,632  @  Spark Infrastructure Group - RTS   1,595    0.0 
2,193  @  Transurban Group - RTS   952    0.0 
          2,547    0.0 
                 
      Switzerland: 0.0%          
8,760  @  Credit Suisse Group AG   5,364    0.0 
                 
      United Kingdom: 0.0%          
4,182  @  Standard Chartered PLC   5,732    0.0 
                 
   Total Rights          
   (Cost $–)   13,643   0.0 
                 
                 
   Total Investments in Securities
(Cost $70,247,771)		  $60,467,811    98.4 
   Assets in Excess of Other Liabilities   1,014,266    1.6 
   Net Assets  $61,482,077    100.0 

 

 

@ Non-income producing security.
   
  Cost for federal income tax purposes is $70,402,130.
   
  Net unrealized depreciation consists of:

 

Gross Unrealized Appreciation  $3,547,123 
Gross Unrealized Depreciation   (13,481,442)
Net Unrealized Depreciation  $(9,934,319)

 

 

Sector Diversification  Percentage
of Net Assets		 
Financials   29.3%
Consumer Staples   12.3 
Industrials   9.0 
Materials   8.0 
Energy   8.0 
Information Technology   7.2 
Health Care   7.0 
Consumer Discretionary   6.4 
Utilities   6.0 
Telecommunication Services   5.2 
Assets in Excess of Other Liabilities   1.6 
Net Assets   100.0%

 

 

 

  

  PORTFOLIO OF INVESTMENTS
Voya International High Dividend Equity Income Fund  as of November 30, 2015 (Unaudited) (Continued)

 

 

Fair Value Measurements

The following is a summary of the fair valuations according to the inputs used as of November 30, 2015 in valuing the assets and liabilities:(1)

 

   Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)		   Significant
Other
Observable
Inputs#
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Fair Value
at
November 30,
2015		 
Asset Table                    
Investments, at fair value                    
Common Stock                    
Australia  $–   $5,228,352   $–   $5,228,352 
Belgium   –    158,511    –    158,511 
China     –    5,847,464    317,576    6,165,040 
Denmark   –    249,430    –    249,430 
France   –    6,298,261    –    6,298,261 
Germany   –    1,865,205    –    1,865,205 
Hong Kong   –    1,957,389    –    1,957,389 
India   –    2,080,421    –    2,080,421 
Indonesia   –    354,184    –    354,184 
Ireland   –    635,928    –    635,928 
Italy   –    2,200,776    –    2,200,776 
Macau   –    291,911    –    291,911 
Malaysia   186,044    560,612    –    746,656 
Netherlands   –    1,147,099    –    1,147,099 
Norway   –    401,283    –    401,283 
Singapore   –    316,498    –    316,498 
South Korea   –    3,243,584    –    3,243,584 
Spain   –    1,590,187    –    1,590,187 
Sweden   –    1,490,186    –    1,490,186 
Switzerland   –    4,438,377    –    4,438,377 
Taiwan   –    2,336,196    –    2,336,196 
Thailand   –    263,895    –    263,895 
United Kingdom   107,088    9,068,697    –    9,175,785 
United States   6,612,754    –    –    6,612,754 
Total Common Stock   6,905,886    52,024,446    317,576    59,247,908 
Preferred Stock   213,240    993,020    –    1,206,260 
Rights   12,048    1,595    –    13,643 
Total Investments, at fair value  $7,131,174   $53,019,061   $317,576   $60,467,811 
Liabilities Table                    
Other Financial Instruments+                    
Written Options  $–   $(190,529)  $–   $(190,529)
Total Liabilities  $–   $(190,529)  $–   $(190,529)

 

(1) For the period ended November 30, 2015, as a result of the fair value pricing procedures for international equities utilized by the Fund, certain securities have transferred in and out of Level 1 and Level 2 measurements during the year. The Fund's policy is to recognize transfers between levels at the beginning of the reporting period. At November 30, 2015, securities valued at $542,462 were transferred from Level 2 to Level 1 within the fair value hierarchy. In addition, securities valued at $371,835 were transferred from Level 2 to Level 3 due to significant unobservable inputs.
+ Other Financial Instruments are derivatives not reflected in the portfolio of investments and may include open forward foreign currency contracts, futures, centrally cleared swaps, OTC swaps and written options. Forward foreign currency contracts, futures and centrally cleared swaps are valued at the unrealized gain (loss) on the instrument.  OTC swaps and written options are valued at the fair value of the instrument.
# The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a portion of the Fund's investments are categorized as Level 2 investments.

 

 

 

  

  PORTFOLIO OF INVESTMENTS
Voya International High Dividend Equity Income Fund  as of November 30, 2015 (Unaudited) (Continued)

 

At November 30, 2015, the following over-the-counter written options were outstanding for Voya International High Dividend Equity Income Fund:

 

Number of
Contracts		  Counterparty  Description  Exercise
Price		   Expiration
Date		   Premiums
Received		     Fair Value
Options on Indices                       
1,000  Deutsche Bank AG  Call on S&P/ASX 200 Index  5,159.475 AUD     12/03/15   $75,039   $ (27,786)
1,610  Goldman Sachs & Co.  Call on EURO STOXX 50® Index  3,449.170 EUR     12/03/15    115,189     (121,057)
610  Morgan Stanley  Call on FTSE 100 Index  6,349.170 GBP     12/03/15    82,424     (39,743)
800  Deutsche Bank AG  Call on Hang Seng Index  22,789.390HKD    12/03/15    46,549     (1,656)
9,400,000  Deutsche Bank AG  Call on Korea Stock Exchange KOSPI 200 Index  251.646 KRW     12/03/15    28,103     (247)
6,500  Deutsche Bank AG  Call on Taiwan Stock Exchange Weighted Index  8,842.577 TWD     12/03/15    28,036     (40)
      Total Written OTC Options   $375,340   $ (190,529)

 

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya International High Dividend Equity Income Fund  as of November 30, 2015 (Unaudited) (Continued)

 

A summary of derivative instruments by primary risk exposure is outlined in the following tables.

 

The fair value of derivative instruments as of November 30, 2015 was as follows:

 

   Instrument Type  Fair Value 
Derivatives not accounted for as hedging instruments    
        
Liability Derivatives        
         
Equity contracts  Written options  $190,529 
Total Liability Derivatives     $190,529 

 

The following is a summary by counterparty of the fair value of OTC derivative instruments subject to Master Netting Agreements and collateral pledged (received), if any, at November 30, 2015:

 

   Deutsche Bank AG   Goldman Sachs & Co.   Morgan Stanley   Totals 
Liabilities:                
Written options  $29,729   $121,057   $39,743   $190,529 
Total Liabilities  $29,729   $121,057   $39,743   $190,529 
                     
Net OTC derivative instruments by counterparty, at fair value  $(29,729)  $(121,057)  $(39,743)   (190,529)
                     
Total collateral pledged by the Fund/(Received from counterparty)  $-   $-   $-   $- 
                     
Net Exposure(1)  $(29,729)  $(121,057)  $(39,743)  $(190,529)

 

(1) Positive net exposure represents amounts due from each respective counterparty. Negative exposure represents amounts due from the Fund.

 

 

 

 

Item 2. Controls and Procedures.

 

(a)Based on our evaluation conducted within 90 days of the filing date, hereof, the design and operation of the registrant’s disclosure controls and procedures are effective to ensure that material information relating to the registrant is made known to the certifying officers by others within the appropriate entities, particularly during the period in which Forms N-Q are being prepared, and the registrant’s disclosure controls and procedures allow timely preparation and review of the information for the registrant’s Form N-Q and the officer certifications of such Form N-Q.

 

(b)There were no significant changes in the registrant’s internal controls over financial reporting that occurred during the registrant’s last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) is attached hereto as EX-99.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.

 

(Registrant): Voya International High Dividend Equity Income Fund

 

By /s/ Shaun P. Mathews  
  Shaun P. Mathews  
  President and Chief Executive Officer  
     
Date: January 22, 2016  

 

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/ Shaun P. Mathews  
  Shaun P. Mathews  
  President and Chief Executive Officer  
     
Date: January 22, 2016  
     
By /s/ Todd Modic  
  Todd Modic  
  Senior Vice President and Chief Financial Officer  
     
Date: January 22, 2016