N-Q 1 t1600081_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: 811-22004

 

Voya Asia Pacific 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 Asia Pacific High Dividend Equity Income Fund

 

The schedules are not audited.

 

   

 

  

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

  

 

Shares         Value   Percentage
of Net
Assets
 
COMMON STOCK: 94.3%          
       Australia: 20.9%          
69,388      Australia & New Zealand Banking Group Ltd.  $1,361,717    1.0 
150,529      BHP Billiton Ltd.   2,001,599    1.5 
242,511      Coca-Cola Amatil Ltd.   1,582,008    1.2 
343,735      Goodman Group   1,514,215    1.1 
528,141      Incitec Pivot Ltd.   1,438,500    1.1 
445,532      Insurance Australia Group Ltd.   1,779,847    1.3 
854,614      Metcash Ltd.   909,980    0.7 
68,017      National Australia Bank Ltd.   1,442,357    1.1 
1,098,531      Nine Entertainment Co. Holdings Ltd.   1,316,297    1.0 
41,184      Rio Tinto Ltd.   1,371,344    1.0 
267,562      Santos Ltd.   774,941    0.6 
1,591,369      Sigma Pharmaceuticals Ltd.   1,000,696    0.7 
150,529   @  South32 Ltd. - AUD   129,578    0.1 
177,776   @  Spark Infrastructure Group   240,437    0.2 
1,386,649      Spark Infrastructure Group - Stapled Security   1,900,732    1.4 
543,187      Stockland   1,567,331    1.2 
188,745      Suncorp Group Ltd   1,822,754    1.4 
12,034   @  Transurban Group   90,250    0.1 
216,610      Transurban Group - Stapled Security   1,623,337    1.2 
152,403      Treasury Wine Estates Ltd.   830,075    0.6 
740,913      Vicinity Centres   1,449,243    1.1 
75,578      Westpac Banking Corp.   1,752,879    1.3 
           27,900,117    20.9 
                  
       China: 25.3%          
250,000      Beijing Enterprises Holdings Ltd.   1,561,769    1.2 
450,000      BOC Hong Kong Holdings Ltd.   1,379,267    1.0 
4,498,000      China BlueChemical Ltd.   1,221,916    0.9 
4,218,960      China Construction Bank   2,906,086    2.2 
742,000      China Life Insurance Co., Ltd.   2,563,900    1.9 
329,000      China Merchants Bank Co., Ltd.   773,019    0.6 
664,000      China Overseas Land & Investment Ltd.   2,199,145    1.7 
2,163,800      China Petroleum & Chemical Corp.   1,337,941    1.0 
2,992,000      China Resources Cement Holdings Ltd.   973,473    0.7 
588,000      China Resources Land Ltd.   1,585,835    1.2 
642,000      China Resources Power Holdings Co.   1,207,313    0.9 
1,148,000      China Unicom Hong Kong Ltd.   1,425,196    1.1 
1,422,000      COSCO Pacific Ltd.   1,750,360    1.3 
3,680,000      Datang International Power Generation Co., Ltd.   1,184,058    0.9 
Shares         Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)          
       China: (continued)          
151,500   Hengan International Group Co., Ltd.  $1,528,065    1.2 
5,566,379      Industrial & Commercial Bank of China   3,372,194    2.5 
574,000      Jiangsu Expressway Co. Ltd.   745,784    0.6 
3,323,500      Parkson Retail Group Ltd.   426,955    0.3 
1,758,000      PetroChina Co., Ltd.   1,245,636    0.9 
545,000      Shanghai Industrial Holdings Ltd.   1,424,575    1.1 
684,600      Shanghai Pharmaceuticals Holding Co. Ltd.   1,501,561    1.1 
805,500      Shimao Property Holdings Ltd.   1,343,525    1.0 
           33,657,573    25.3 
                  
       Hong Kong: 7.9%          
711,334      AIA Group Ltd.   4,247,245    3.2 
13,570,000      Emperor Watch & Jewellery Ltd.   346,147    0.2 
701,000      Hang Lung Properties Ltd.   1,642,951    1.2 
4,076,000      Hutchison Telecommunications Hong Kong Holdings Ltd.   1,419,628    1.1 
351,000      MTR Corp.   1,629,726    1.2 
319,100      Television Broadcasts Ltd.   1,283,506    1.0 
           10,569,203    7.9 
                  
       India: 8.4%          
335,192      GAIL India Ltd.   1,839,408    1.4 
458,985      ICICI Bank Ltd.   1,896,203    1.4 
303,909      ITC Ltd.   1,561,085    1.2 
789,507      NTPC Ltd.   1,552,590    1.2 
627,310      Punjab National Bank   1,363,711    1.0 
114,011      Reliance Industries Ltd.   1,652,953    1.2 
375,400      Tata Steel Ltd.   1,294,509    1.0 
           11,160,459    8.4 
                  
       Indonesia: 1.5%          
1,204,800      Indo Tambangraya Megah PT   588,499    0.5 
3,837,000      Indofood Sukses Makmur Tbk PT   1,349,544    1.0 
           1,938,043    1.5 
                  
       Macau: 1.2%          
465,252      Sands China Ltd.   1,567,436    1.2 
                  
       Malaysia: 3.2%          
1,635,613      Berjaya Sports Toto BHD   1,185,283    0.9 
1,990,800      IJM Corp. Bhd   1,590,130    1.2 
757,500      Malayan Banking BHD   1,478,025    1.1 
           4,253,438    3.2 
                  
       Singapore: 1.2%          
1,139,500      First Resources Ltd.   1,605,025    1.2 

   

 

  

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

 

Shares         Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)          
       South Korea: 12.8%          
183,652      DGB Financial Group, Inc.  $1,647,909    1.2 
83,680      Hite Jinro Co. Ltd.   1,743,893    1.3 
50,561      Hyundai Marine & Fire Insurance Co., Ltd.   1,479,183    1.1 
49,111      KB Financial Group, Inc.   1,493,968    1.1 
58,923      KT Corp.   1,532,407    1.2 
35,185      LG Display Co., Ltd.   775,075    0.6 
7,887      POSCO   1,153,110    0.9 
3,494      Samsung Electronics Co., Ltd.   3,867,659    2.9 
43,652      Shinhan Financial Group Co., Ltd.   1,567,253    1.2 
15,694      SK Innovation Co. Ltd.   1,725,390    1.3 
           16,985,847    12.8 
                  
       Taiwan: 9.8%          
1,070,000      Cathay Financial Holding Co., Ltd.   1,496,624    1.1 
432,000      Cheng Uei Precision Industry Co., Ltd.   562,003    0.4 
2,467,319      CTBC Financial Holding Co. Ltd.   1,292,085    1.0 
121,827      MediaTek, Inc.   970,842    0.7 
704,000      Powertech Technology, Inc.   1,519,248    1.1 
777,000      Quanta Computer, Inc.   1,213,958    0.9 
274,000      Radiant Opto-Electronics Corp.   715,182    0.5 
987,167      Taiwan Semiconductor Manufacturing Co., Ltd.   4,224,193    3.2 
270,000      Tong Hsing Electronic Industries Ltd.   641,956    0.5 
166,000      TPK Holding Co. Ltd.   470,709    0.4 
           13,106,800    9.8 
                  
       Thailand: 0.9%          
175,900      PTT PCL-Foreign   1,254,570    0.9 
                  
       United Kingdom: 1.2%          
206,400      HSBC Holdings PLC   1,645,797    1.2 
                  
    Total Common Stock          
    (Cost $162,414,530)   125,644,308    94.3 
                  
PREFERRED STOCK: 2.3%          
       South Korea: 2.3%          
4,238      Hyundai Motor Co.   405,810    0.3 
10,406      Hyundai Motor Co.- Series 2   1,000,855    0.7 
1,811      Samsung Electronics Co., Ltd.   1,712,221    1.3 
                  
    Total Preferred Stock          
    (Cost $2,368,427)   3,118,886    2.3 
                  
RIGHTS: 0.0%          
       Australia: 0.0%          
177,775   @  Spark Infrastructure Group - RTS   8,691    0.0 
Shares         Value   Percentage
of Net
Assets
 
RIGHTS: (continued)          
12,033   @  Transurban Group - RTS  $5,222    0.0 
                  
    Total Rights          
    (Cost $–)   13,913    0.0 
                  
    Total Investments in Securities
(Cost $164,782,957)
  $128,777,107    96.6 
    Assets in Excess of Other Liabilities   4,473,570    3.4 
    Net Assets  $133,250,677    100.0 

 

@ Non-income producing security.

 

  Cost for federal income tax purposes is $165,109,598.
   
  Net unrealized depreciation consists of:

 

Gross Unrealized Appreciation  $5,342,931 
Gross Unrealized Depreciation   (41,675,422)
      
Net Unrealized Depreciation  $(36,332,491)

 

Sector Diversification  Percentage
of Net Assets
 
Financials   37.4%
Information Technology   12.5 
Consumer Staples   8.4 
Industrials   7.9 
Materials   7.2 
Energy   6.4 
Utilities   6.0 
Consumer Discretionary   5.6 
Telecommunication Services   3.4 
Health Care   1.8 
Assets in Excess of Other Liabilities   3.4 
Net Assets   100.0%

   

 

  

Voya Asia Pacific High Dividend Equity Income Fund PORTFOLIO OF INVESTMENTS
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  $   $27,900,117   $   $27,900,117 
China       31,907,213    1,750,360    33,657,573 
Hong Kong       10,569,203        10,569,203 
India       11,160,459        11,160,459 
Indonesia       1,938,043        1,938,043 
Macau       1,567,436        1,567,436 
Malaysia   1,185,283    3,068,155        4,253,438 
Singapore       1,605,025        1,605,025 
South Korea       16,985,847        16,985,847 
Taiwan       13,106,800        13,106,800 
Thailand       1,254,570        1,254,570 
United Kingdom       1,645,797        1,645,797 
Total Common Stock   1,185,283    122,708,665    1,750,360    125,644,308 
Preferred Stock       3,118,886        3,118,886 
Rights   5,222    8,691        13,913 
Total Investments, at fair value  $1,190,505   $125,836,242   $1,750,360   $128,777,107 
Liabilities Table                    
Other Financial Instruments+                    
Written Options  $   $(103,838)  $   $(103,838)
Total Liabilities  $   $(103,838)  $   $(103,838)

   

(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 $2,409,920 were transferred from Level 2 to Level 1 within the fair value hierarchy. In addition, securities valued at $2,049,415 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.

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at November 30, 2015.

 

Investments, at fair value  Fair Value at November 30, 2015   Valuation Technique(s)  Unobservable Inputs  Input Values 
Common Stock  $1,750,360   Proxy Pricing  Base price   5.68%

 

The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund's assets and liabilities during the period ended November 30, 2015:

 

   Beginning
Balance
           Accrued
Discounts/
   Total
Realized
   *Net Change
in Unrealized
Appreciation/
   Transfers
Into
   Transfers
Out of
   Ending
Balance
 
   2/28/2015   Purchases   Sales   (Premiums)   Gain/(Loss)   (Depreciation)   Level 3   Level 3   11/30/2015 
Asset Table                                             
Investments, at fair value                                             
Common Stock  $-   $-   $-   $-   $-   $(299,055)  $2,049,415   $-   $1,750,360 
Total Investments, at value  $-   $-   $-   $-   $-   $(299,055)  $2,049,415   $-   $1,750,360 

 

* As of November 30, 2015  net change in unrealized appreciation (depreciation) on Level 3 securities still held at period end and included in the change in net assets was $(299,055).

 

 

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

 

Number of
Contracts
   Counterparty  Description  Exercise
Price
  Expiration
Date
  Premiums
Received
   Fair Value 
Options on Indices                 
 3,500   Deutsche Bank AG  Call on S&P/ASX 200 Index   5,159.475 AUD  12/03/15  $262,638   $(97,249)
 2,700   Deutsche Bank AG  Call on Hang Seng Index   22,789.390 HKD  12/03/15   157,103    (5,588)
 32,700,000   Deutsche Bank AG  Call on Korea Stock Exchange KOSPI 200 Index   251.646 KRW  12/03/15   97,761    (861)
 22,800   Deutsche Bank AG  Call on Taiwan Stock Exchange Weighted Index   8,842.577 TWD  12/03/15   98,342    (140)
     Total Written OTC Options  $615,844   $(103,838)

 

   

 

  

Voya Asia Pacific High Dividend Equity Income Fund PORTFOLIO OF INVESTMENTS
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  $103,838 
Total Liability Derivatives     $103,838 

 

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 
Liabilities:     
Written options  $103,838 
Total Liabilities  $103,838 
      
Net OTC derivative instruments by counterparty, at fair value  $(103,838)
      
Total collateral pledged by the Fund/(Received from counterparty)  $- 
      
Net Exposure(1)  $(103,838)

 

(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 Asia Pacific 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