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, 2016

  

 

 

 

 

  

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, 2016 (Unaudited)

 

Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: 97.3%         
      Australia: 7.9%          
30,175     Australia & New Zealand Banking Group Ltd.  $554,054    1.0 
42,582     Coca-Cola Amatil Ltd.   273,796    0.5 
96,500     Incitec Pivot Ltd.   239,962    0.4 
81,535     Insurance Australia Group Ltd.   345,597    0.6 
141,820  @  Metcash Ltd.   209,728    0.4 
211,582     Nine Entertainment Co. Holdings Ltd.   185,636    0.3 
12,472     Rio Tinto Ltd.   403,445    0.7 
47,892     Santos Ltd.   155,668    0.3 
164,491     Sigma Pharmaceuticals Ltd.   146,016    0.2 
28,027  @  South32 Ltd.   31,515    0.0 
182,403     Spark Infrastructure Group   302,924    0.5 
81,462     Stockland   266,388    0.5 
35,142     Suncorp Group Ltd.   329,040    0.6 
18,277     Treasury Wine Estates Ltd.   136,395    0.2 
116,603     Vicinity Centres   274,330    0.5 
31,187     Westpac Banking Corp.   689,607    1.2 
          4,544,101    7.9 
                 
      Austria: 0.2%          
4,902     Erste Bank der Oesterreichischen Sparkassen AG   131,133    0.2 
                 
      Belgium: 0.3%          
3,623     Ageas   146,360    0.3 
                 
      China: 11.0%          
6,181  @  Alibaba Group Holding Ltd. ADR   506,842    0.9 
45,500     Beijing Enterprises Holdings Ltd.   236,787    0.4 
81,500     BOC Hong Kong Holdings Ltd.   250,933    0.4 
838,000     China BlueChemical Ltd.   185,399    0.3 
944,380     China Construction Bank   611,567    1.1 
176,000     China Life Insurance Co., Ltd.   393,637    0.7 
60,000     China Merchants Bank Co., Ltd.   122,784    0.2 
35,000     China Mobile Ltd.   398,528    0.7 
108,000     China Overseas Land & Investment Ltd.   324,746    0.6 
397,400     China Petroleum & Chemical Corp.   270,185    0.5 
138,000     China Resources Power Holdings Co.   216,722    0.4 
210,000     China Unicom Hong Kong Ltd.   227,086    0.4 
258,000     COSCO Pacific Ltd.   260,721    0.4 
670,000     Datang International Power Generation Co., Ltd.   179,308    0.3 
27,500     Hengan International Group Co., Ltd.   248,734    0.4 
Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)         
      China: (continued)          
884,383     Industrial & Commercial Bank of China  $470,586    0.8 
152,000     Jiangsu Expressway Co. Ltd.   207,948    0.4 
202,000     Lenovo Group Ltd.   123,928    0.2 
604,500     Parkson Retail Group Ltd.   56,814    0.1 
320,000     PetroChina Co., Ltd.   219,067    0.4 
123,000     Shanghai Industrial Holdings Ltd.   277,233    0.5 
140,400     Shanghai Pharmaceuticals Holding Co. Ltd.   303,032    0.5 
165,500     Shimao Property Holdings Ltd.   209,440    0.4 
          6,302,027    11.0 
                 
      Denmark: 0.4%          
79     AP Moller - Maersk A/S - Class B   101,588    0.2 
24,636     TDC A/S   123,370    0.2 
          224,958    0.4 
                 
      Finland: 0.3%          
31,188     Nokia OYJ - Finland   178,270    0.3 
                 
      France: 9.0%          
26,686     AXA S.A.   670,550    1.2 
11,346     BNP Paribas   628,757    1.1 
15,931     Carrefour S.A.   431,780    0.7 
4,616     Casino Guichard Perrachon S.A.   274,672    0.5 
8,072     Cie de Saint-Gobain   360,653    0.6 
5,773     Eutelsat Communications   115,159    0.2 
29,082     Orange SA   506,030    0.9 
44,104     Engie SA   679,903    1.2 
2,572     Danone   180,688    0.3 
8,595     Metropole Television SA   157,807    0.3 
6,716     Sanofi   552,001    0.9 
6,901     Total S.A.   334,692    0.6 
3,782     Vinci S.A.   284,822    0.5 
          5,177,514    9.0 
                 
      Germany: 5.2%          
1,063     Adidas AG   136,083    0.2 
3,875     Bayer AG   369,040    0.6 
6,523     Daimler AG   445,919    0.8 
21,311     Deutsche Post AG   622,028    1.1 
15,977     Deutsche Telekom AG   283,999    0.5 
1,865     Linde AG   279,362    0.5 
2,807     Muenchener Rueckversicherungs-Gesellschaft AG   527,723    0.9 
3,940     SAP SE   319,097    0.6 
          2,983,251    5.2 
                 
      Hong Kong: 3.3%          
129,540     AIA Group Ltd.   760,673    1.3 
32,193     CLP Holdings Ltd.   303,463    0.5 
2,470,000  @  Emperor Watch & Jewellery Ltd.   46,910    0.1 

 

 

 

  

Voya International High Dividend Equity Income Fund PORTFOLIO OF INVESTMENTS
as of May 31, 2016 (Unaudited) (Continued)

 

Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)         
      Hong Kong: (continued)          
840,000     Hutchison Telecommunications Hong Kong Holdings Ltd.  $277,777    0.5 
433     Link REIT   2,657    0.0 
63,000     MTR Corp.   298,660    0.5 
57,400     Television Broadcasts Ltd.   195,027    0.4 
          1,885,167    3.3 
                 
      India: 5.1%          
55,564     Coal India Ltd.   240,566    0.4 
49,457     GAIL India Ltd.   272,109    0.5 
20,291     HCL Technologies Ltd.   222,962    0.4 
6,770     Hero Motocorp Ltd.   311,515    0.6 
83,697     ICICI Bank Ltd.   301,750    0.5 
27,463     Indiabulls Housing Finance Ltd.   292,960    0.5 
55,399     ITC Ltd.   288,801    0.5 
157,921     NTPC Ltd.   335,808    0.6 
113,600     Punjab National Bank   133,195    0.2 
17,727     Reliance Industries Ltd.   252,066    0.4 
56,610     Tata Steel Ltd.   281,046    0.5 
          2,932,778    5.1 
                 
      Indonesia: 0.2%          
220,200     Indo Tambangraya Megah PT   141,145    0.2 
                 
      Ireland: 1.1%          
21,655     CRH PLC - Dublin   658,553    1.1 
                 
      Italy: 2.6%          
13,387     Assicurazioni Generali S.p.A.   194,034    0.4 
128,914     Enel S.p.A.   584,538    1.0 
9,922     ENI S.p.A.   151,320    0.3 
139,438     Intesa Sanpaolo SpA - ISP   357,834    0.6 
7,911     Prysmian S.p.A.   193,620    0.3 
          1,481,346    2.6 
                 
      Macau: 0.4%          
64,235     Sands China Ltd.   245,841    0.4 
                 
      Malaysia: 1.2%          
256,728     Berjaya Sports Toto BHD   189,639    0.3 
232,000     CIMB Group Holdings BHD   246,523    0.4 
292,900     IJM Corp. BHD   247,571    0.5 
          683,733    1.2 
                 
      Netherlands: 2.3%          
6,500  #,@  ABN AMRO Group NV   132,364    0.2 
6,302     Koninklijke DSM NV   375,135    0.7 
33,232     Royal Dutch Shell PLC - Class B   797,783    1.4 
          1,305,282    2.3 
                 
      Singapore: 0.4%          
176,800     First Resources Ltd.   207,436    0.4 
Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)         
      South Korea: 4.5%          
33,332     DGB Financial Group, Inc.  $259,095    0.5 
9,617     Hite Jinro Co. Ltd.   202,310    0.4 
9,443     Hyundai Marine & Fire Insurance Co., Ltd.   250,350    0.4 
10,558     KB Financial Group, Inc.   301,231    0.5 
11,039     KT Corp.   297,905    0.5 
6,551     LG Display Co., Ltd.   142,184    0.3 
1,443     POSCO   251,984    0.4 
593     Samsung Electronics Co., Ltd.   641,855    1.1 
7,453     Shinhan Financial Group Co., Ltd.   247,169    0.4 
          2,594,083    4.5 
                 
      Spain: 3.2%          
24,171     Abertis Infraestructuras S.A.   369,885    0.6 
24,054     Banco Santander SA   114,777    0.2 
40,887     Banco Bilbao Vizcaya Argentaria S.A.   270,726    0.5 
9,956     Ebro Foods SA   233,285    0.4 
13,695  @  Indra Sistemas S.A.   156,123    0.3 
24,293     Prosegur Cia de Seguridad SA   146,925    0.2 
53,125  @  Telefonica S.A.   554,901    1.0 
          1,846,622    3.2 
                 
      Sweden: 2.7%          
13,062     Telefonaktiebolaget LM Ericsson   100,829    0.2 
6,653     Svenska Cellulosa AB SCA   213,195    0.4 
34,293     Svenska Handelsbanken AB   439,223    0.7 
58,809     TeliaSonera AB   275,720    0.5 
47,858     Volvo AB - B Shares   533,030    0.9 
          1,561,997    2.7 
                 
      Switzerland: 6.2%          
5,483     Cie Financiere Richemont SA   323,182    0.6 
8,760     Credit Suisse Group AG   120,621    0.2 
2,769     LafargeHolcim Ltd.   124,645    0.2 
5,504     Nestle S.A.   406,744    0.7 
9,351     Novartis AG   743,147    1.3 
2,955     Roche Holding AG   776,149    1.3 
158     SGS S.A.   337,353    0.6 
28,198     UBS Group AG   435,636    0.8 
1,129     Zurich Insurance Group AG   273,243    0.5 
          3,540,720    6.2 
                 
      Taiwan: 3.1%          
25,000     Catcher Technology Co., Ltd.   189,485    0.3 
194,000     Cathay Financial Holding Co., Ltd.   223,576    0.4 
556,280     CTBC Financial Holding Co. Ltd.   291,226    0.5 
23,612     MediaTek, Inc.   159,121    0.3 
107,000     Quanta Computer, Inc.   189,903    0.3 

 

 

 

  

Voya International High Dividend Equity Income Fund PORTFOLIO OF INVESTMENTS
as of May 31, 2016 (Unaudited) (Continued)

 

Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)         
      Taiwan: (continued)          
120,363     Taiwan Semiconductor Manufacturing Co., Ltd.  $575,903    1.0 
77,000     TPK Holding Co. Ltd.   154,310    0.3 
          1,783,524    3.1 
                 
      Thailand: 0.5%          
37,000     PTT PCL-Foreign   310,377    0.5 
                 
      United Kingdom: 14.5%          
2,628     AstraZeneca PLC   153,375    0.3 
59,342     Aviva PLC   386,126    0.7 
171,442     Barclays PLC   451,195    0.8 
50,238     BP PLC   259,100    0.4 
12,128     Diageo PLC   329,096    0.6 
6,663     easyJet PLC   147,803    0.3 
39,003     GlaxoSmithKline PLC   815,118    1.4 
42,134     HSBC Holdings PLC (GBP)   272,332    0.5 
38,800     HSBC Holdings PLC (HKD)   252,213    0.4 
131,035     J Sainsbury PLC   509,441    0.9 
117,541     Kingfisher PLC   623,902    1.1 
17,000     Land Securities Group PLC   286,514    0.5 
344,788     Lloyds Banking Group Plc   358,907    0.6 
76,353     Mitie Group PLC   311,694    0.5 
13,095     Rio Tinto PLC   364,928    0.6 
13,237     Rolls-Royce Holdings PLC   118,694    0.2 
939,827  @  Rolls-Royce Holdings PLC - C shares   1,361    0.0 
60,540     RSA Insurance Group PLC   428,566    0.7 
13,986     SSE PLC   309,938    0.5 
32,508     Segro PLC   205,730    0.4 
17,240     Smiths Group PLC   279,968    0.5 
14,639     Standard Chartered PLC   111,828    0.2 
54,799     Tate & Lyle PLC   499,118    0.9 
5,940     Unilever PLC   270,566    0.5 
24,569     UBM PLC   209,224    0.4 
15,615     WPP PLC   360,112    0.6 
          8,316,849    14.5 
                 
      United States: 11.7%          
11,351     AbbVie, Inc.   714,319    1.2 
15,774     AT&T, Inc.   617,552    1.1 
28,497     Cisco Systems, Inc.   827,838    1.4 
5,306     Cummins, Inc.   607,378    1.1 
11,556     Dow Chemical Co.   593,516    1.0 
10,307     JPMorgan Chase & Co.   672,738    1.2 
7,795     Kraft Heinz Co.   648,466    1.1 
5,019     McDonald's Corp.   612,619    1.1 
6,496     Occidental Petroleum Corp.   490,058    0.9 
2,523     Simon Property Group, Inc.   498,646    0.9 
7,502     Valero Energy Corp.   410,359    0.7 
          6,693,489    11.7 
                 
   Total Common Stock          
   (Cost $64,061,033)   55,876,556    97.3 
Shares        Value   Percentage
of Net
Assets
 
PREFERRED STOCK: 1.0%         
      South Korea: 1.0%          
856     Hyundai Motor Co.  $71,114    0.1 
2,271     Hyundai Motor Co.- Series 2   199,898    0.3 
363     Samsung Electronics Co., Ltd. - Pref   323,146    0.6 
                 
   Total Preferred Stock          
   (Cost $504,773)   594,158    1.0 
                 
RIGHTS: 0.0%         
      Spain: 0.0%          
24,171  @  Abertis Infraestructuras SA   18,530    0.0 
                 
   Total Rights          
   (Cost $–)   18,530    0.0 
                 
   Total Investments in Securities
(Cost $64,565,806)
  $56,489,244    98.3 
   Assets in Excess of Other Liabilities   972,249    1.7 
   Net Assets  $57,461,493    100.0 

 

 

# 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.
@ Non-income producing security.
 ADR American Depositary Receipt

 

  Cost for federal income tax purposes is $64,579,814.
   
  Net unrealized depreciation consists of:

 

Gross Unrealized Appreciation  $3,075,182 
Gross Unrealized Depreciation   (11,165,752)
      
Net Unrealized Depreciation  $(8,090,570)

 

Sector Diversification  Percentage
of Net Assets
 
Financials   28.9%
Industrials   10.3 
Consumer Staples   9.8 
Information Technology   8.5 
Consumer Discretionary   7.9 
Health Care   7.7 
Energy   7.0 
Materials   6.4 
Telecommunication Services   6.3 
Utilities   5.5 
Rights*   0.0 
Assets in Excess of Other Liabilities   1.7 
Net Assets   100.0%

 

* Amount is less than 0.05%.

 

 

  

Voya International High Dividend Equity Income Fund PORTFOLIO OF INVESTMENTS
as of May 31, 2016 (Unaudited) (Continued)

 

Fair Value Measurements

The following is a summary of the fair valuations according to the inputs used as of May 31, 2016 in valuing the assets and liabilities:

 

   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, 2016
 
Asset Table                    
Investments, at fair value                    
Common Stock                    
Australia  $   $4,544,101   $   $4,544,101 
Austria       131,133        131,133 
Belgium       146,360        146,360 
China   506,842    5,795,185        6,302,027 
Denmark       224,958        224,958 
Finland       178,270        178,270 
France       5,177,514        5,177,514 
Germany       2,983,251        2,983,251 
Hong Kong       1,885,167        1,885,167 
India       2,932,778        2,932,778 
Indonesia       141,145        141,145 
Ireland       658,553        658,553 
Italy       1,481,346        1,481,346 
Macau       245,841        245,841 
Malaysia   437,210    246,523        683,733 
Netherlands       1,305,282        1,305,282 
Singapore       207,436        207,436 
South Korea       2,594,083        2,594,083 
Spain       1,846,622        1,846,622 
Sweden       1,561,997        1,561,997 
Switzerland       3,540,720        3,540,720 
Taiwan       1,783,524        1,783,524 
Thailand       310,377        310,377 
United Kingdom       8,316,849        8,316,849 
United States   6,693,489            6,693,489 
Total Common Stock   7,637,541    48,239,015        55,876,556 
Preferred Stock       594,158        594,158 
Rights   18,530            18,530 
Total Investments, at fair value  $7,656,071   $48,833,173   $   $56,489,244 
Liabilities Table                    
Other Financial Instruments+                    
Written Options  $   $(636,978)  $   $(636,978)
Total Liabilities  $   $(636,978)  $   $(636,978)

 

+ 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.

 

At May 31, 2016, 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                     
 900   Societe Generale  Call on S&P/ASX 200 Index   5,241.840   AUD  06/02/16  $61,548   $(90,145)
 1,610   Societe Generale  Call on EURO STOXX 50® Index   2,907.340   EUR  06/02/16   135,823    (277,708)
 610   Societe Generale  Call on FTSE 100 Index   6,077.949   GBP  06/02/16   100,576    (134,425)
 800   Deutsche Bank AG  Call on Hang Seng Index   20,258.340   HKD  06/02/16   44,591    (56,881)
 9,000,000   Goldman Sachs & Co.  Call on Korea Stock Exchange KOSPI 200 Index   243.393   KRW  06/02/16   21,967    (7,788)

 

 

 

  

Voya International High Dividend Equity Income Fund PORTFOLIO OF INVESTMENTS
as of May 31, 2016 (Unaudited) (Continued)

 

Number of
Contracts
   Counterparty  Description  Exercise
Price
  Expiration
Date
  Premiums
Received
   Fair Value 
 6,400   Societe Generale  Call on Taiwan Stock Exchange Weighted Index   8,177.460   TWD  06/02/16  $22,730   $(70,031)
        Total Written OTC Options             $387,235   $(636,978)

 

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, 2016 was as follows:

 

   Instrument Type  Fair Value 
Derivatives not accounted for as hedging instruments     
         
Liability Derivatives        
         
Equity contracts  Written options  $636,978 
Total Liability Derivatives     $636,978 

 

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, 2016:

 

   Deutsche Bank AG   Goldman Sachs & Co.   Societe Generale   Totals 
Liabilities:                    
Written options  $56,881   $7,788   $572,309   $636,978 
Total Liabilities  $56,881   $7,788   $572,309   $636,978 
                     
Net OTC derivative instruments by counterparty, at fair value  $(56,881)  $(7,788)  $(572,309)   (636,978)
                     
Total collateral pledged by the Fund/(Received from counterparty)  $-   $-   $-   $- 
                     
Net Exposure(1)  $(56,881)  $(7,788)  $(572,309)  $(636,978)

 

(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: July 27, 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: July 27, 2016  
     
By /s/ Todd Modic  
Todd Modic  
  Senior Vice President and Chief Financial Officer  
     
Date: July 27, 2016