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, 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 November 30, 2016 (Unaudited)

 

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: 97.5%          
      Australia: 8.7%          
31,909     Australia & New Zealand Banking Group Ltd.  $668,243    1.2 
42,582     Coca-Cola Amatil Ltd.   301,728    0.5 
136,511     Incitec Pivot Ltd.   316,702    0.6 
70,381     Insurance Australia Group Ltd.   289,774    0.5 
141,820  @  Metcash Ltd.   216,234    0.4 
211,582     Nine Entertainment Co. Holdings Ltd.   144,143    0.3 
28,345     QBE Insurance Group Ltd.   233,612    0.4 
11,684     Rio Tinto Ltd.   494,141    0.9 
47,892     Santos Ltd.   141,018    0.3 
164,491     Sigma Pharmaceuticals Ltd.   149,561    0.3 
145,606     Spark Infrastructure Group   241,664    0.4 
81,462     Stockland   259,913    0.5 
32,214     Suncorp Group Ltd.   296,854    0.5 
116,603     Vicinity Centres   250,916    0.5 
32,845     Westpac Banking Corp.   759,429    1.4 
          4,763,932    8.7 
                 
      Austria: 0.4%          
7,732     Erste Bank der Oesterreichischen Sparkassen AG   214,260    0.4 
                 
      Belgium: 0.5%          
3,623     Ageas   135,067    0.3 
4,417  @  Ontex Group NV   119,862    0.2 
          254,929    0.5 
                 
      China: 12.9%          
7,615  @  Alibaba Group Holding Ltd. ADR   715,962    1.3 
45,500     Beijing Enterprises Holdings Ltd.   210,289    0.4 
838,000     China BlueChemical Ltd.   191,455    0.3 
980,380     China Construction Bank   730,930    1.3 
61,000     China Mobile Ltd.   666,179    1.2 
116,000     China Overseas Land & Investment Ltd.   334,087    0.6 
1     China Overseas Property Holdings Ltd.   –    – 
397,400     China Petroleum & Chemical Corp.   284,967    0.5 
160,000     China Resources Power Holdings Co.   263,041    0.5 
195,030     China State Construction International Holdings Ltd.   314,600    0.6 
280,000     China Unicom Hong Kong Ltd.   339,397    0.6 
296,000     COSCO Pacific Ltd.   309,487    0.6 
670,000     Datang International Power Generation Co., Ltd.   180,079    0.3 
35,500     Hengan International Group Co., Ltd.   279,607    0.5 
Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)          
      China: (continued)          
886,123     Industrial & Commercial Bank of China  $541,496    1.0 
418,000     Lenovo Group Ltd.   258,566    0.5 
604,500     Parkson Retail Group Ltd.   62,337    0.1 
366,000     PetroChina Co., Ltd.   249,712    0.5 
100,000     Shanghai Industrial Holdings Ltd.   281,462    0.5 
115,000     Shanghai Pharmaceuticals Holding Co. Ltd.   287,464    0.5 
206,500     Shimao Property Holdings Ltd.   269,597    0.5 
298,000     Zhejiang Expressway Co., Ltd.   318,205    0.6 
          7,088,919    12.9 
                 
      Denmark: 0.5%          
201     AP Moller - Maersk A/S - Class B   265,524    0.5 
                 
      Finland: 0.2%          
31,188     Nokia OYJ - Finland   133,853    0.2 
                 
      France: 8.6%          
26,686     AXA S.A.   627,187    1.1 
7,186     BNP Paribas   416,491    0.8 
15,931     Carrefour S.A.   372,813    0.7 
3,938     Casino Guichard Perrachon S.A.   178,965    0.3 
8,072     Cie de Saint-Gobain   349,647    0.6 
5,773     Eutelsat Communications   103,781    0.2 
29,082     Orange SA   423,501    0.8 
44,104     Engie SA   543,038    1.0 
2,572     Danone   161,097    0.3 
1,012     LVMH Moet Hennessy Louis Vuitton SE   183,795    0.3 
5,327     Sanofi   429,337    0.8 
10,297     Total S.A.   490,938    0.9 
6,610     Vinci S.A.   428,095    0.8 
          4,708,685    8.6 
                 
      Germany: 5.7%          
2,483     Bayer AG   233,833    0.4 
4,678     Daimler AG   310,711    0.6 
4,621  @  Deutsche Boerse AG   373,439    0.7 
21,311     Deutsche Post AG   665,015    1.2 
24,557     Deutsche Telekom AG   386,460    0.7 
1,865     Linde AG   313,315    0.6 
2,807     Muenchener Rueckversicherungs-Gesellschaft AG   511,391    0.9 
4,574     ProSiebenSat.1 Media SE   156,541    0.3 
2,154     SAP SE   179,890    0.3 
          3,130,595    5.7 
                 
      Hong Kong: 2.8%          
110,040     AIA Group Ltd.   670,043    1.2 
28,993     CLP Holdings Ltd.   282,846    0.5 

 

 

 

 

Voya International High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS

as of November 30, 2016 (Unaudited) (Continued)

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)          
      Hong Kong: (continued)          
2,470,000  @  Emperor Watch & Jewellery Ltd.  $87,734    0.2 
840,000     Hutchison Telecommunications Hong Kong Holdings Ltd.   280,385    0.5 
433     Link REIT   2,978    0.0 
57,400     Television Broadcasts Ltd.   204,510    0.4 
          1,528,496    2.8 
                 
      India: 4.1%          
55,564     Coal India Ltd.   250,110    0.4 
49,457     GAIL India Ltd.   306,606    0.6 
76,866     ICICI Bank Ltd.   298,188    0.5 
80,906     ITC Ltd.   274,992    0.5 
130,806     NTPC Ltd.   311,561    0.6 
113,600  @  Punjab National Bank   228,375    0.4 
17,727     Reliance Industries Ltd.   256,087    0.5 
56,610     Tata Steel Ltd.   342,047    0.6 
          2,267,966    4.1 
                 
      Indonesia: 0.4%          
182,700     Indo Tambangraya Megah PT   215,313    0.4 
                 
      Italy: 1.9%          
128,914     Enel S.p.A.   520,511    1.0 
9,922     ENI S.p.A.   138,819    0.3 
77,410     Intesa Sanpaolo SpA - ISP   170,589    0.3 
7,911     Prysmian S.p.A.   188,941    0.3 
          1,018,860    1.9 
                 
      Malaysia: 1.4%          
358,828     Berjaya Sports Toto BHD   251,485    0.5 
263,000     CIMB Group Holdings Bhd   268,569    0.5 
351,800     IJM Corp. Bhd   254,128    0.4 
          774,182    1.4 
                 
      Netherlands: 2.5%          
13,934  #  ABN AMRO Group NV   301,082    0.6 
5,713     Koninklijke DSM NV   346,875    0.6 
27,257     Royal Dutch Shell PLC - Class B   724,823    1.3 
          1,372,780    2.5 
                 
      Norway: 0.2%          
8,197     Statoil ASA   142,116    0.2 
                 
      Singapore: 0.6%          
234,700     First Resources Ltd.   311,692    0.6 
                 
      South Korea: 5.7%          
33,332     DGB Financial Group, Inc.   272,711    0.5 
14,253     Hite Jinro Co. Ltd.   265,157    0.5 
10,399     Hyundai Marine & Fire Insurance Co., Ltd.   323,798    0.6 
7,000     Korea Electric Power Corp.   277,733    0.5 
11,039     KT Corp.   281,456    0.5 
9,005     LG Display Co., Ltd.   215,459    0.4 
Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)          
      South Korea: (continued)          
1,589     POSCO  $340,197    0.6 
552     Samsung Electronics Co., Ltd.   821,473    1.5 
8,322     Shinhan Financial Group Co., Ltd.   313,602    0.6 
          3,111,586    5.7 
                 
      Spain: 3.1%          
25,379     Abertis Infraestructuras S.A.   338,602    0.6 
12,536     ACS Actividades de Construccion y Servicios S.A.   368,640    0.7 
27,078     Banco Santander SA   123,696    0.2 
20,838     Banco Bilbao Vizcaya Argentaria S.A.   128,313    0.3 
9,956     Ebro Foods SA   201,719    0.4 
19,675     Prosegur Cia de Seguridad SA   122,226    0.2 
47,715     Telefonica S.A.   397,473    0.7 
          1,680,669    3.1 
                 
      Sweden: 2.4%          
13,062     Telefonaktiebolaget LM Ericsson   67,037    0.1 
6,653     Svenska Cellulosa AB SCA   177,262    0.3 
34,293     Svenska Handelsbanken AB   475,939    0.9 
58,809     Telia Co. AB   220,974    0.4 
33,258     Volvo AB - B Shares   355,614    0.7 
          1,296,826    2.4 
                 
      Switzerland: 6.5%          
8,760     Credit Suisse Group AG   116,518    0.2 
9,829     LafargeHolcim Ltd.   519,934    0.9 
6,114     Julius Baer Group Ltd.   269,566    0.5 
4,801     Nestle S.A.   323,101    0.6 
9,351     Novartis AG   644,488    1.2 
2,955     Roche Holding AG   657,698    1.2 
57     SGS S.A.   114,302    0.2 
28,198     UBS Group AG   448,333    0.8 
1,820     Zurich Insurance Group AG   476,842    0.9 
          3,570,782    6.5 
                 
      Taiwan: 4.0%          
25,000     Catcher Technology Co., Ltd.   181,088    0.3 
341,000     Cathay Financial Holding Co., Ltd.   499,616    0.9 
600,782     CTBC Financial Holding Co. Ltd.   329,125    0.6 
27,612     MediaTek, Inc.   191,187    0.4 
107,000     Quanta Computer, Inc.   198,788    0.4 
106,399     Taiwan Semiconductor Manufacturing Co., Ltd.   611,840    1.1 
94,000  @  TPK Holding Co. Ltd.   158,174    0.3 
          2,169,818    4.0 
                 
      Thailand: 0.3%          
14,900     PTT PCL-Foreign   146,577    0.3 

 

 

 

 

Voya International High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS

as of November 30, 2016 (Unaudited) (Continued)

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)          
      United Kingdom: 11.8%          
2,628     AstraZeneca PLC  $135,969    0.2 
59,342     Aviva PLC   331,711    0.6 
128,389     Barclays PLC   345,698    0.6 
22,852     BP PLC   132,566    0.2 
8,905     Diageo PLC   222,650    0.4 
6,663     easyJet PLC   82,499    0.2 
39,003     GlaxoSmithKline PLC   727,833    1.3 
30,006     HSBC Holdings PLC (GBP)   237,845    0.4 
42,800     HSBC Holdings PLC (HKD)   338,152    0.6 
131,035     J Sainsbury PLC   378,469    0.7 
97,541     Kingfisher PLC   429,148    0.8 
15,177     Land Securities Group PLC   184,095    0.3 
257,455     Lloyds Banking Group Plc   185,944    0.3 
63,141     Marks & Spencer Group PLC   259,113    0.5 
76,353     Mitie Group PLC   195,958    0.4 
8,060     Rio Tinto PLC   304,113    0.6 
13,237     Rolls-Royce Holdings PLC   111,893    0.2 
608,902  @  Rolls-Royce Holdings PLC - C shares   762    0.0 
12,105     SSE PLC   223,002    0.4 
11,055     Smiths Group PLC   194,985    0.4 
12,035     Tate & Lyle PLC   101,720    0.2 
21,839     UBM PLC   194,752    0.4 
5,368     Unilever PLC   213,546    0.4 
206,515     Vodafone Group PLC   498,888    0.9 
2,332     Whitbread PLC   100,969    0.2 
15,615     WPP PLC   333,021    0.6 
          6,465,301    11.8 
                 
      United States: 12.3%          
15,774     AT&T, Inc.   609,350    1.1 
21,284     Cisco Systems, Inc.   634,689    1.2 
18,451     Coach, Inc.   671,432    1.2 
15,257     Coca-Cola Co.   615,620    1.1 
5,306     Cummins, Inc.   752,285    1.4 
11,556     Dow Chemical Co.   643,900    1.2 
10,177     JPMorgan Chase & Co.   815,890    1.5 
10,252     Merck & Co., Inc.   627,320    1.1 
6,496     Occidental Petroleum Corp.   463,554    0.9 
2,523     Simon Property Group, Inc.   453,257    0.8 
7,502     Valero Energy Corp.   461,823    0.8 
          6,749,120    12.3 
                 
   Total Common Stock          
   (Cost $61,285,006)   53,382,781    97.5 
                 
PREFERRED STOCK: 1.2%          
      South Korea: 1.2%          
856     Hyundai Motor Co.   70,127    0.1 
2,271     Hyundai Motor Co.- Series 2   192,875    0.4 
Shares         Value    Percentage
of Net
Assets		 
PREFERRED STOCK: (continued)          
      South Korea: (continued)          
317     Samsung Electronics Co., Ltd. - Pref  $366,488    0.7 
                 
   Total Preferred Stock          
   (Cost $469,879)   629,490    1.2 
                 
   Total Long-Term Investments          
   (Cost $61,754,885)   54,012,271    98.7 
                 
SHORT-TERM INVESTMENTS: 1.8%
      Mutual Funds: 1.8%          
1,004,618     BlackRock Liquidity Funds, FedFund, Institutional Class, 0.310%          
      (Cost $1,004,618)   1,004,618    1.8 
                 
   Total Short-Term Investments          
   (Cost $1,004,618)   1,004,618    1.8 
                 
   Total Investments in Securities
(Cost $62,759,503)		  $55,016,889    100.5 
   Liabilities in Excess of Other Assets   (248,898)   (0.5)
   Net Assets  $54,767,991    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 $62,769,028.
  Net unrealized depreciation consists of:

 

Gross Unrealized Appreciation  $2,470,093 
Gross Unrealized Depreciation   (10,222,232)
      
Net Unrealized Depreciation  $(7,752,139)

  

Sector Diversification  Percentage
of Net Assets		 
Financials   25.0%
Industrials   11.5 
Information Technology   8.7 
Consumer Staples   8.6 
Energy   7.5 
Telecommunication Services   7.4 
Consumer Discretionary   7.1 
Health Care   7.0 
Materials   6.9 
Utilities   5.8 
Real Estate   3.2 
Short-Term Investments   1.8 
Liabilities in Excess of Other Assets   (0.5)
Net Assets   100.0%

 

 

 

 

Voya International High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS

as of November 30, 2016 (Unaudited) (Continued)

 

Fair Value Measurements

The following is a summary of the fair valuations according to the inputs used as of November 30, 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
November 30,
2016		 
Asset Table                    
Investments, at fair value                    
Common Stock                    
Australia  $–   $4,763,932   $–   $4,763,932 
Austria   –    214,260    –    214,260 
Belgium   –    254,929    –    254,929 
China   715,962    6,372,957    –    7,088,919 
Denmark   –    265,524    –    265,524 
Finland   –    133,853    –    133,853 
France   –    4,708,685    –    4,708,685 
Germany   373,439    2,757,156    –    3,130,595 
Hong Kong   –    1,528,496    –    1,528,496 
India   –    2,267,966    –    2,267,966 
Indonesia   –    215,313    –    215,313 
Italy   –    1,018,860    –    1,018,860 
Malaysia   251,485    522,697    –    774,182 
Netherlands   –    1,372,780    –    1,372,780 
Norway   –    142,116    –    142,116 
Singapore   –    311,692    –    311,692 
South Korea   –    3,111,586    –    3,111,586 
Spain   –    1,680,669    –    1,680,669 
Sweden   –    1,296,826    –    1,296,826 
Switzerland   –    3,570,782    –    3,570,782 
Taiwan   –    2,169,818    –    2,169,818 
Thailand   –    146,577    –    146,577 
United Kingdom   –    6,465,301    –    6,465,301 
United States   6,749,120    –    –    6,749,120 
Total Common Stock   8,090,006    45,292,775    –    53,382,781 
Preferred Stock   –    629,490    –    629,490 
Short-Term Investments   1,004,618    –    –    1,004,618 
Total Investments, at fair value  $9,094,624   $45,922,265   $–   $55,016,889 
Liabilities Table                    
Other Financial Instruments+                    
Written Options  $–   $(368,991)  $–   $(368,991)
Total Liabilities  $–   $(368,991)  $–   $(368,991)

 

+ 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.

 

 

 

 

Voya International High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS

as of November 30, 2016 (Unaudited) (Continued)

 

  At November 30, 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                        
 800   Morgan Stanley & Co. International PLC  Call on S&P/ASX 200 Index   5,168.563   AUD  12/01/16  $52,324   $(160,364)
 1,610   Goldman Sachs International  Call on EURO STOXX 50® Index   2,972.930   EUR  12/01/16   119,896    (133,641)
 630   Morgan Stanley & Co. International PLC  Call on FTSE 100 Index   6,773.767   GBP  12/01/16   95,080    (22,483)
 700   Goldman Sachs International  Call on Hang Seng Index   22,675.650   HKD  12/01/16   40,479    (14,029)
 8,300,000   Merrill Lynch International  Call on Korea Stock Exchange KOSPI 200 Index   253.397   KRW  12/01/16   27,012    (9,013)
 5,400   Morgan Stanley & Co. International PLC  Call on Taiwan Stock Exchange Weighted Index   9,066.828   TWD  12/01/16  $24,745   $(29,461)
        Total Written OTC Options  $359,536   $(368,991)

 

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, 2016 was as follows:

 

    Fair Value 
Derivatives not accounted for as hedging instruments       
        
Liability Derivatives  Instrument Type    
         
Equity contracts  Written options  $368,991 
Total Liability Derivatives     $368,991 

  

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, 2016:

  

   Goldman Sachs International   Merrill Lynch International   Morgan Stanley & Co. International PLC   Totals 
Liabilities:                    
Written options  $147,670   $9,013   $212,308   $368,991 
Total Liabilities  $147,670   $9,013   $212,308   $368,991 
                     
Net OTC derivative instruments by counterparty, at fair value  $(147,670)  $(9,013)  $(212,308)   (368,991)
                     
Total collateral pledged by the Fund/(Received from counterparty)  $-   $-   $-   $- 
                     
Net Exposure(1)  $(147,670)  $(9,013)  $(212,308)  $(368,991)

  

(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 20, 2017  

 

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 20, 2017  
     
By /s/ Todd Modic  
  Todd Modic  
  Senior Vice President and Chief Financial Officer  
     
Date: January 20, 2017