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: May 31, 2018

 

 

 

 

 

 

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.

 

 

 

  

Voya International High Dividend Equity Income Fund PORTFOLIO OF INVESTMENTS
as of May 31, 2018 (Unaudited)

 

Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: 96.7%
      Australia: 7.6%
59,639      Aurizon Holdings Ltd.  $193,529    0.3 
19,799      Australia & New Zealand Banking Group Ltd.   406,904    0.7 
60,619      Charter Hall Group   291,264    0.5 
38,680      Coca-Cola Amatil Ltd.   259,422    0.5 
4,564      Commonwealth Bank of Australia   238,663    0.4 
88,582      Metcash Ltd.   193,537    0.3 
157,440      Nine Entertainment Co. Holdings Ltd.   286,122    0.5 
36,701      QBE Insurance Group Ltd.   262,114    0.5 
9,199      Rio Tinto Ltd.   574,314    1.0 
67,059   (1) Santos Ltd.   296,016    0.5 
92,320      Scentre Group   291,550    0.5 
273,238      Sigma Healthcare Ltd.   161,887    0.3 
149,115      Spark Infrastructure Group   247,881    0.4 
28,628      Suncorp Group Ltd.   289,948    0.5 
18,107      Westpac Banking Corp.   382,714    0.7 
           4,375,865    7.6 
                  
       Austria: 0.8%          
10,319      Erste Group Bank AG   427,347    0.8 
                  
       Belgium: 0.2%          
2,681      Ageas   135,632    0.2 
                  
       China: 11.9%          
397,000      Bank of China Ltd. - H Shares   207,310    0.4 
70,500      Beijing Enterprises Holdings Ltd.   387,685    0.7 
739,381      China Construction Bank - H Shares   744,201    1.3 
160,000      China Life Insurance Co., Ltd. - H Shares   445,864    0.8 
65,000      China Mobile Ltd.   581,906    1.0 
112,000      China Overseas Land & Investment Ltd.   372,151    0.6 
78,726      China Resources Gas Group Ltd.   297,806    0.5 
108,000      China Resources Land Ltd.   394,762    0.7 
291,030      China State Construction International Holdings Ltd.   358,549    0.6 
289,000      CNOOC Ltd.   487,614    0.9 
354,000      COSCO Shipping Ports, Ltd.   340,249    0.6 
44,500      Hengan International Group Co., Ltd.   422,885    0.7 
581,123      Industrial & Commercial Bank of China - H Shares   479,995    0.8 
550,000      Lenovo Group Ltd.   290,422    0.5 
686,000      PetroChina Co., Ltd. - H Shares   565,544    1.0 

 

Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)          
       China: (continued)          
149,300      Shanghai Pharmaceuticals Holding Co. Ltd. - H Shares  $459,408    0.8 
           6,836,351    11.9 
                  
       France: 8.4%          
11,253      Alstom SA   532,357    0.9 
2,875      Capgemini SE   379,158    0.7 
3,592      Cie Generale des Etablissements Michelin SCA   464,383    0.8 
8,225      Danone   629,841    1.1 
34,276      Engie SA   540,695    0.9 
22,839      Orange SA   393,075    0.7 
20,464      Total SA   1,244,079    2.2 
6,687      Vinci SA   657,682    1.1 
           4,841,270    8.4 
                  
       Germany: 6.0%          
2,566      Deutsche Boerse AG   342,763    0.6 
11,715      Deutsche Post AG   444,311    0.8 
21,089      Deutsche Telekom AG   326,693    0.6 
1,775      LEG Immobilien AG   194,558    0.3 
583   (1)  Linde AG   133,223    0.2 
2,914      Muenchener Rueckversicherungs-Gesellschaft AG   599,000    1.0 
4,501      SAP SE   507,022    0.9 
6,931      Siemens AG   903,308    1.6 
           3,450,878    6.0 
                  
       Hong Kong: 2.7%          
67,440      AIA Group Ltd.   615,559    1.1 
25,000      CK Hutchison Holdings Ltd.   281,506    0.5 
42,493      CLP Holdings Ltd.   446,160    0.8 
433      Link REIT   3,815    0.0 
60,000      Television Broadcasts Ltd.   203,840    0.3 
           1,550,880    2.7 
                  
       India: 4.1%          
94,423      Coal India Ltd.   414,185    0.7 
6,807      Hero Motocorp Ltd.   357,309    0.6 
96,449      ICICI Bank Ltd.   407,650    0.7 
11,411      Infosys Ltd. ADR   207,566    0.3 
99,673      ITC Ltd.   400,821    0.7 
158,147      NTPC Ltd.   392,569    0.7 
18,028      Tech Mahindra Ltd.   190,215    0.4 
           2,370,315    4.1 
                  
       Indonesia: 0.4%          
407,600      Semen Indonesia Persero Tbk PT   245,671    0.4 
                  
       Ireland: 1.8%          
34,884      AIB Group PLC   190,610    0.3 
13,168      CRH PLC   485,869    0.9 
8,676      Smurfit Kappa Group PLC   354,967    0.6 
           1,031,446    1.8 

 

 

 

Voya International High Dividend Equity Income Fund PORTFOLIO OF INVESTMENTS
as of May 31, 2018 (Unaudited) (Continued)

 

Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)
      Italy: 1.3%
71,100      Enel S.p.A.  $390,751    0.7 
77,410      Intesa Sanpaolo SpA   228,447    0.4 
3,935      Prysmian SpA   110,106    0.2 
           729,304    1.3 
                  
       Luxembourg: 0.8%          
9,541      APERAM SA   442,616    0.8 
                  
       Macau: 0.7%          
290,000      SJM Holdings Ltd.   414,208    0.7 
                  
       Malaysia: 1.1%          
247,800      CIMB Group Holdings Bhd   367,089    0.7 
562,200      IJM Corp. Bhd   239,212    0.4 
           606,301    1.1 
                  
       Netherlands: 3.9%          
13,934   (2)  ABN AMRO Group NV   361,437    0.6 
6,112   (1)  ASR Nederland NV   258,432    0.5 
27,429      Koninklijke Ahold Delhaize NV   630,120    1.1 
27,257      Royal Dutch Shell PLC - Class B   973,516    1.7 
           2,223,505    3.9 
                  
       New Zealand: 0.6%          
78,934      Fletcher Building Ltd.   363,878    0.6 
                  
       Norway: 0.9%          
37,648      Norsk Hydro ASA   236,925    0.4 
7,257      Yara International ASA   299,561    0.5 
           536,486    0.9 
                  
       Singapore: 0.5%          
228,900      First Resources Ltd.   278,342    0.5 
                  
       South Korea: 5.8%          
8,490      Hana Financial Group, Inc.   327,213    0.6 
14,425      Hite Jinro Co. Ltd.   269,323    0.5 
9,910      Kangwon Land, Inc.   246,696    0.4 
11,039      KT Corp.   276,373    0.5 
10,692      LG Display Co., Ltd.   220,034    0.4 
1,047      POSCO   331,406    0.6 
17,400      Samsung Electronics Co., Ltd.   817,062    1.4 
1,648      Samsung Fire & Marine Insurance Co. Ltd.   382,699    0.6 
10,788      Shinhan Financial Group Co., Ltd.   440,337    0.8 
           3,311,143    5.8 
                  
       Spain: 2.6%          
12,536      ACS Actividades de Construccion y Servicios SA   522,199    0.9 
20,838      Banco Bilbao Vizcaya Argentaria SA   143,109    0.2 
27,078      Banco Santander SA   147,260    0.3 
9,956      Ebro Foods SA   242,057    0.4 
23,673      Merlin Properties Socimi SA   327,012    0.6 

 

Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)
       Spain: (continued)          
19,675     Prosegur Cia de Seguridad SA  $135,150    0.2 
           1,516,787    2.6 
                  
       Sweden: 0.8%          
44,016      Svenska Handelsbanken AB   482,206    0.8 
                  
       Switzerland: 4.0%          
10,680      Nestle SA   807,221    1.4 
3,392      Roche Holding AG   727,285    1.3 
57      SGS SA   147,658    0.2 
27,567      UBS Group AG   416,135    0.7 
728      Zurich Insurance Group AG   215,752    0.4 
           2,314,051    4.0 
                  
       Taiwan: 4.5%          
28,000      Catcher Technology Co., Ltd.   324,587    0.6 
226,000      Cathay Financial Holding Co., Ltd.   402,865    0.7 
596,782      CTBC Financial Holding Co. Ltd.   428,242    0.8 
98,000      HON HAI Precision Industry Co., Ltd.   279,599    0.5 
203,000      Quanta Computer, Inc.   358,264    0.6 
102,691      Taiwan Semiconductor Manufacturing Co., Ltd.   766,742    1.3 
           2,560,299    4.5 
                  
       United Kingdom: 12.0%          
8,467      AstraZeneca PLC   617,716    1.1 
22,852      BP PLC   174,776    0.3 
7,844      Carnival PLC   502,617    0.9 
11,865      Diageo PLC   435,957    0.8 
29,475      GlaxoSmithKline PLC   597,157    1.0 
30,006      HSBC Holdings PLC   287,221    0.5 
11,844      Johnson Matthey PLC   552,276    1.0 
25,747      Land Securities Group PLC   317,799    0.5 
156,482      Legal & General Group PLC   560,479    1.0 
25,018      Prudential PLC   600,940    1.0 
3,344      Rio Tinto PLC   188,605    0.3 
21,132      SSE PLC   383,874    0.7 
5,045      Smiths Group PLC   117,889    0.2 
21,581      St. James's Place PLC   341,296    0.6 
21,839      UBM PLC   298,885    0.5 
12,127      Unilever PLC   668,608    1.2 
93,489      Vodafone Group PLC   238,905    0.4 
           6,885,000    12.0 
                  
       United States: 13.3%          
20,244      Cisco Systems, Inc.   864,621    1.5 
3,648      Deere & Co.   545,412    0.9 
9,261      DowDuPont, Inc.   593,723    1.0 
15,108      Exelon Corp.   625,320    1.1 
28,451      Gap, Inc.   796,059    1.4 
11,298      Halliburton Co.   561,962    1.0 
12,317      Hartford Financial Services Group, Inc.   644,549    1.1 
17,245      Intel Corp.   951,924    1.7 

 

 

 

Voya International High Dividend Equity Income Fund PORTFOLIO OF INVESTMENTS
as of May 31, 2018 (Unaudited) (Continued)

 

Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)
       United States: (continued)          
35,186     Keycorp  $684,016    1.2 
13,486      Merck & Co., Inc.   802,822    1.4 
14,241      Mondelez International, Inc.   559,244    1.0 
           7,629,652    13.3 
                  
    Total Common Stock          
    (Cost $54,824,178)   55,559,433    96.7 
                  
PREFERRED STOCK: 0.4%          
       South Korea: 0.4%          
6,100      Samsung Electronics Co., Ltd.   228,155    0.4 
                  
    Total Preferred Stock          
    (Cost $92,861)   228,155    0.4 
                  
    Total Long-Term Investments          
    (Cost $54,917,039)   55,787,588    97.1 
                  
SHORT-TERM INVESTMENTS: 2.3%          
       Mutual Funds: 2.3%          
1,296,268   (3)  BlackRock Liquidity Funds, FedFund, Institutional Class, 1.640%          
       (Cost $1,296,268)   1,296,268    2.3 
                  
    Total Short-Term Investments          
    (Cost $1,296,268)   1,296,268    2.3 
                  
    Total Investments in Securities
(Cost $56,213,307)
  $57,083,856    99.4 
    Assets in Excess of Other Liabilities   324,998    0.6 
    Net Assets  $57,408,854    100.0 

 

ADR American Depositary Receipt
(1) Non-income producing security.
(2) Securities with purchases pursuant to Rule 144A or section 4(a)(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers.
(3) Rate shown is the 7-day yield as of May 31, 2018.

 

Sector Diversification   Percentage
of Net Assets
 
Financials   24.3%
Information Technology   11.2 
Consumer Staples   10.2 
Industrials   9.4 
Materials   8.3 
Energy   8.3 
Utilities   6.5 
Consumer Discretionary   6.1 
Health Care   5.9 
Real Estate   3.7 
Telecommunication Services   3.2 
Short-Term Investments   2.3 
Assets in Excess of Other Liabilities   0.6 
Net Assets   100.0%

 

 

  

Voya International High Dividend Equity Income Fund PORTFOLIO OF INVESTMENTS
as of May 31, 2018 (Unaudited) (Continued)

 

 

Fair Value Measurements

The following is a summary of the fair valuations according to the inputs used as of May 31, 2018 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
May 31, 2018
 
Asset Table                    
Investments, at fair value                         
Common Stock                    
Australia  $   $4,375,865   $   $4,375,865 
Austria       427,347        427,347 
Belgium       135,632        135,632 
China       6,836,351        6,836,351 
France       4,841,270        4,841,270 
Germany       3,450,878        3,450,878 
Hong Kong       1,550,880        1,550,880 
India   207,566    2,162,749        2,370,315 
Indonesia       245,671        245,671 
Ireland   190,610    840,836        1,031,446 
Italy       729,304        729,304 
Luxembourg       442,616        442,616 
Macau       414,208        414,208 
Malaysia       606,301        606,301 
Netherlands       2,223,505        2,223,505 
New Zealand       363,878        363,878 
Norway       536,486        536,486 
Singapore       278,342        278,342 
South Korea       3,311,143        3,311,143 
Spain       1,516,787        1,516,787 
Sweden       482,206        482,206 
Switzerland       2,314,051        2,314,051 
Taiwan       2,560,299        2,560,299 
United Kingdom       6,885,000        6,885,000 
United States   7,629,652            7,629,652 
Total Common Stock   8,027,828    47,531,605        55,559,433 
Preferred Stock       228,155        228,155 
Short-Term Investments   1,296,268            1,296,268 
Total Investments, at fair value  $9,324,096   $47,759,760   $   $57,083,856 
Liabilities Table                    
Other Financial Instruments+                    
Written Options  $   $(257,695)  $   $(257,695)
Total Liabilities  $   $(257,695)  $   $(257,695)

 

(1) For the period ended May 31, 2018, 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 May 31, 2018, securities valued at $1,642,700 were transferred from Level 1 to Level 2 within the fair value hierarchy.
+ Other Financial Instruments 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.

 

 

 

 

Voya International High Dividend Equity Income Fund PORTFOLIO OF INVESTMENTS
as of May 31, 2018 (Unaudited) (Continued)

 

At May 31, 2018, the following OTC written equity options were outstanding for Voya International High Dividend Equity Income Fund:

 

Description  Counterparty  Put/Call  Expiration
Date
  Exercise
Price
  Number of
Contracts
   Notional
Amount
   Premiums
Received
   Fair Value 
         
EURO STOXX 50® Index  Morgan Stanley & International PLC  Call  06/07/18   3,485.000   EUR   1,320    4,496,778   $70,751   $(4,715)
FTSE 100 Index  Morgan Stanley & International PLC  Call  06/07/18   7,462.000   GBP   550    4,223,010    66,052    (153,797)
Hang Seng Index  Morgan Stanley & International PLC  Call  06/07/18   30,032.000   HKD   540    16,453,022    38,841    (36,402)
Korea Stock Exchange KOSPI 200 Index  Morgan Stanley & International PLC  Call  06/07/18   320.111   KRW   6,400,000    1,989,888,000    28,864    (1,224)
S&P/ASX 200 Index  Morgan Stanley & International PLC  Call  06/07/18   6,076.418   AUD   770    4,629,150    43,401    (2,806)
Taiwan Stock Exchange Weighted Index  Societe Generale  Call  06/07/18   10,492.000   TWD   4,600    50,024,816    24,022    (58,751)
                              $271,931   $(257,695)

 

Currency Abbreviations
AUD - Australian Dollar
EUR - EU Euro
GBP - British Pound
HKD - Hong Kong Sar Dollar
KRW - South Korean Won
TWD - Taiwan New Dollar

 

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

 

The fair value of derivative instruments as of May 31, 2018 was as follows:

 

     Fair Value 
Derivatives not accounted for as hedging instruments        
         
Liability Derivatives  Instrument Type     
         
Equity contracts  Written options  $257,695 
Total Liability Derivatives     $257,695 

 

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 May 31, 2018:

 

   Morgan Stanley & Co.
International PLC
   Societe Generale   Totals 
Liabilities:               
Written options  $198,944   $58,751   $257,695 
Total Liabilities  $198,944   $58,751   $257,695 
                
Net OTC derivative instruments by counterparty, at fair value  $(198,944)  $(58,751)   (257,695)
                
Total collateral pledged by the Fund/(Received from counterparty)  $198,944   $-   $198,944 
                
Net Exposure(1)  $-   $(58,751)  $(58,751)

 

(1)Positive net exposure represents amounts due from each respective counterparty. Negative exposure represents amounts due from the Fund.
(2)At May 31, 2018, the Fund had pledged $420,000 in cash collateral to Morgan Stanley & Co. International PLC. Excess cash collateral is not shown for financial reporting purposes.

 

At May 31, 2018, the aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments at period end were:

 

Cost for federal income tax purposes was $56,114,060.

 

Net unrealized appreciation consisted of:

 

Gross Unrealized Appreciation  $5,047,945 
Gross Unrealized Depreciation   (4,309,763)
Net Unrealized Appreciation  $738,182 

 

 

 

 

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/ Michael Bell  
  Michael Bell  
  Chief Executive Officer  
     
Date: July 26, 2018  

 

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/ Michael Bell  
  Michael Bell  
  Chief Executive Officer  
     
Date: July 26, 2018  
     
By /s/ Todd Modic  
  Todd Modic  
  Senior Vice President and Chief Financial Officer  
     
Date: July 26, 2018