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, 2017

 

 
   

 

 

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, 2017 (Unaudited)

  

Shares           Value     Percentage
of Net
Assets
 
COMMON STOCK: 96.4%    
        Australia: 7.8%                
31,909       Australia & New Zealand Banking Group Ltd.   $ 663,166       1.1  
72,350       Charter Hall Group     305,347       0.5  
38,078       Coca-Cola Amatil Ltd.     264,271       0.4  
64,892       Insurance Australia Group Ltd.     306,770       0.5  
141,820   @   Metcash Ltd.     216,084       0.4  
245,211       Nine Entertainment Co. Holdings Ltd.     236,746       0.4  
23,573       QBE Insurance Group Ltd.     226,226       0.4  
10,923       Rio Tinto Ltd.     508,568       0.9  
82,187   @   Santos Ltd.     205,840       0.3  
92,320       Scentre Group     291,723       0.5  
229,789       Sigma Healthcare Ltd.     139,042       0.2  
162,708       Spark Infrastructure Group     326,206       0.6  
28,628       Suncorp Group Ltd.     294,538       0.5  
29,181       Westpac Banking Corp.     661,159       1.1  
              4,645,686       7.8  
                         
        Austria: 0.5%                
7,732   @   Erste Group Bank AG     280,816       0.5  
                         
        Belgium: 0.5%                
3,623       Ageas     146,356       0.2  
4,417       Ontex Group NV     159,539       0.3  
              305,895       0.5  
                         
        China: 13.3%                
5,979   @   Alibaba Group Holding Ltd. ADR     732,188       1.3  
59,000       Beijing Enterprises Holdings Ltd.     279,546       0.5  
678,000       China BlueChemical Ltd.     171,910       0.3  
930,380       China Construction Bank     767,963       1.3  
68,500       China Mobile Ltd.     759,179       1.3  
104,000       China Overseas Land & Investment Ltd.     312,129       0.5  
1       China Overseas Property Holdings Ltd.            
545,400       China Petroleum & Chemical Corp.     446,768       0.7  
136,000       China Resources Land Ltd.     399,296       0.7  
160,000       China Resources Power Holdings Co.     329,858       0.5  
175,030       China State Construction International Holdings Ltd.     303,515       0.5  
220,000   @   China Unicom Hong Kong Ltd.     315,897       0.5  
286,000       COSCO Pacific Ltd.     333,882       0.6  
39,000       Hengan International Group Co., Ltd.     273,467       0.5  
811,123       Industrial & Commercial Bank of China     541,583       0.9  
418,000       Lenovo Group Ltd.     273,311       0.5  
604,500       Parkson Retail Group Ltd.     88,360       0.1  
416,000       PetroChina Co., Ltd.     276,637       0.5  
Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)
      China: (continued)          
102,000     Shanghai Industrial Holdings Ltd.  $318,458    0.5 
115,000     Shanghai Pharmaceuticals Holding Co. Ltd.   332,507    0.6 
186,000     Shimao Property Holdings Ltd.   317,103    0.5 
264,000     Zhejiang Expressway Co., Ltd.   309,443    0.5 
          7,883,000    13.3 
                 
      Denmark: 0.4%          
5,649     Novo Nordisk A/S   239,825    0.4 
                 
      Finland: 0.3%          
31,188     Nokia OYJ - Finland   197,454    0.3 
                 
      France: 8.5%          
26,686     AXA S.A.   712,578    1.2 
7,186     BNP Paribas   507,337    0.9 
1,516     Cap Gemini SA   156,976    0.3 
15,931     Carrefour S.A.   416,071    0.7 
5,939     Cie de Saint-Gobain   331,951    0.6 
5,773  @  Eutelsat Communications   148,603    0.2 
29,082     Orange SA   510,980    0.9 
44,104     Engie SA   674,050    1.1 
2,572     Danone   191,176    0.3 
2,769     Sanofi   274,281    0.5 
11,602     Total S.A.   612,914    1.0 
5,622     Vinci S.A.   491,740    0.8 
          5,028,657    8.5 
                 
      Germany: 5.7%          
2,483     Bayer AG   329,925    0.6 
4,678     Daimler AG   340,181    0.6 
4,621     Deutsche Boerse AG   480,938    0.8 
11,238     Deutsche Post AG   410,935    0.7 
24,557     Deutsche Telekom AG   489,591    0.8 
5,922     Evonik Industries AG   204,246    0.3 
2,377     LEG Immobilien AG   224,350    0.4 
583     Linde AG   111,557    0.2 
3,159     Muenchener Rueckversicherungs-Gesellschaft AG   623,782    1.0 
4,574     ProSiebenSat.1 Media SE   194,362    0.3 
          3,409,867    5.7 
                 
      Hong Kong: 2.7%          
97,040     AIA Group Ltd.   686,612    1.2 
28,993     CLP Holdings Ltd.   317,044    0.5 
1,770,000  @  Emperor Watch & Jewellery Ltd.   77,144    0.1 
1,050,000     Hutchison Telecommunications Hong Kong Holdings Ltd.   319,175    0.5 
433     Link REIT   3,415    0.0 
60,000     Television Broadcasts Ltd.   225,985    0.4 
          1,629,375    2.7 

 

   

 

  

Voya International High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS

as of May 31, 2017 (Unaudited) (Continued)

 

Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)
      India: 2.9%          
69,289     Coal India Ltd.  $281,980    0.5 
47,109     GAIL India Ltd.   302,316    0.5 
65,462     ICICI Bank Ltd.   332,032    0.6 
120,114     NTPC Ltd.   298,278    0.5 
83,896  @  Punjab National Bank   195,793    0.3 
42,425     Tata Steel Ltd.   331,915    0.5 
          1,742,314    2.9 
                 
      Indonesia: 1.2%          
606,700     Bank Negara Indonesia Persero Tbk PT   298,054    0.5 
151,100     Indo Tambangraya Megah PT   172,275    0.3 
355,100     Semen Indonesia Persero Tbk PT   251,594    0.4 
          721,923    1.2 
                 
      Italy: 2.2%          
128,914     Enel S.p.A.   690,131    1.1 
9,922     ENI S.p.A.   157,711    0.3 
77,410     Intesa Sanpaolo SpA - ISP   221,993    0.4 
7,911     Prysmian S.p.A.   220,279    0.4 
          1,290,114    2.2 
                 
      Malaysia: 1.5%          
439,128     Berjaya Sports Toto BHD   256,500    0.4 
227,700     CIMB Group Holdings Bhd   340,516    0.6 
399,100     IJM Corp. Bhd   324,490    0.5 
          921,506    1.5 
                 
      Netherlands: 2.8%          
13,934  #  ABN AMRO Group NV   359,831    0.6 
1,900     Koninklijke DSM NV   141,580    0.2 
18,127     Koninklijke Ahold Delhaize NV   400,088    0.7 
27,257     Royal Dutch Shell PLC - Class B   754,536    1.3 
          1,656,035    2.8 
                 
      Norway: 0.4%          
15,385     Statoil ASA   268,283    0.4 
                 
      Singapore: 0.5%          
210,000     First Resources Ltd.   298,219    0.5 
                 
      South Korea: 5.8%          
28,507     DGB Financial Group, Inc.   292,599    0.5 
17,333     Hite Jinro Co. Ltd.   374,546    0.6 
7,211     Kangwon Land, Inc.   233,373    0.4 
7,795     Korea Electric Power Corp.   298,189    0.5 
11,039     KT Corp.   320,873    0.6 
9,005     LG Display Co., Ltd.   261,771    0.5 
1,227     POSCO   309,553    0.5 
337     Samsung Electronics Co., Ltd.   671,204    1.1 
1,349     Samsung Fire & Marine Insurance Co. Ltd.   352,143    0.6 
Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)
      South Korea: (continued)          
7,186     Shinhan Financial Group Co., Ltd.  $316,900    0.5 
          3,431,151    5.8 
                 
      Spain: 3.1%          
15,314     Abertis Infraestructuras S.A.   280,500    0.5 
12,536     ACS Actividades de Construccion y Servicios S.A.   501,667    0.8 
27,078     Banco Santander SA   176,307    0.3 
20,838     Banco Bilbao Vizcaya Argentaria S.A.   170,549    0.3 
9,956     Ebro Foods SA   235,279    0.4 
19,675     Prosegur Cia de Seguridad SA   131,986    0.2 
33,178     Telefonica S.A.   369,932    0.6 
          1,866,220    3.1 
                 
      Sweden: 2.2%          
3,188     Svenska Cellulosa AB SCA   112,453    0.2 
44,016     Svenska Handelsbanken AB   619,065    1.0 
13,062     Telefonaktiebolaget LM Ericsson   95,209    0.2 
58,809     Telia Co. AB   268,927    0.5 
11,775     Volvo AB - B Shares   192,327    0.3 
          1,287,981    2.2 
                 
      Switzerland: 6.1%          
8,760     Credit Suisse Group AG   119,630    0.2 
7,336     LafargeHolcim Ltd.-CHF   441,412    0.7 
6,114     Julius Baer Group Ltd.   317,028    0.5 
4,169     Nestle S.A.   355,956    0.6 
9,351     Novartis AG   765,241    1.3 
2,955     Roche Holding AG   811,292    1.4 
57     SGS S.A.   135,885    0.2 
28,198     UBS Group AG   449,434    0.8 
728     Zurich Insurance Group AG   214,210    0.4 
          3,610,088    6.1 
                 
      Taiwan: 3.5%          
22,000     Catcher Technology Co., Ltd.   232,537    0.4 
286,000     Cathay Financial Holding Co., Ltd.   447,912    0.8 
508,782     CTBC Financial Holding Co. Ltd.   323,710    0.5 
27,612     MediaTek, Inc.   211,020    0.4 
107,000     Quanta Computer, Inc.   244,701    0.4 
91,926     Taiwan Semiconductor Manufacturing Co., Ltd.   623,182    1.0 
          2,083,062    3.5 
                 
      United Kingdom: 12.5%          
2,628     AstraZeneca PLC   177,567    0.3 
59,342     Aviva PLC   402,612    0.7 
128,389     Barclays PLC   347,516    0.6 
22,852     BP PLC   138,061    0.2 
8,905     Diageo PLC   267,671    0.5 
6,663     easyJet PLC   121,434    0.2 

 

   

 

  

Voya International High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS

as of May 31, 2017 (Unaudited) (Continued)

 

Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)
      United Kingdom: (continued)          
39,003     GlaxoSmithKline PLC  $853,739    1.4 
30,006     HSBC Holdings PLC (GBP)   261,274    0.4 
37,200     HSBC Holdings PLC (HKD)   323,590    0.6 
131,035     J Sainsbury PLC   474,682    0.8 
97,541     Kingfisher PLC   407,982    0.7 
15,177     Land Securities Group PLC   209,448    0.4 
149,108     Lloyds Banking Group Plc   135,724    0.2 
33,231     Marks & Spencer Group PLC   164,069    0.3 
36,353  @  Mitie Group PLC   113,444    0.2 
17,791     Prudential PLC   399,164    0.7 
6,560     Rio Tinto PLC   261,964    0.4 
13,237     Rolls-Royce Holdings PLC   148,144    0.3 
15,592     Sage Group PLC   144,872    0.2 
21,615     SSE PLC   419,824    0.7 
5,045     Smiths Group PLC   104,352    0.2 
12,035     Tate & Lyle PLC   114,395    0.2 
21,839     UBM PLC   203,477    0.3 
2,575     Unilever PLC   143,552    0.2 
206,515     Vodafone Group PLC   616,728    1.0 
2,332     Whitbread PLC   128,937    0.2 
15,615     WPP PLC   351,376    0.6 
          7,435,598    12.5 
                 
      United States: 12.0%          
21,284     Cisco Systems, Inc.   671,084    1.1 
16,659     Coach, Inc.   769,812    1.3 
15,257     Coca-Cola Co.   693,736    1.2 
3,408     Cummins, Inc.   537,442    0.9 
7,471     Deere & Co.   914,899    1.5 
11,556     Dow Chemical Co.   716,010    1.2 
11,726     Hartford Financial Services Group, Inc.   579,147    1.0 
23,408     Pfizer, Inc.   764,271    1.3 
13,998     Plains GP Holdings L.P.   373,327    0.6 
5,663     Schlumberger Ltd.   394,088    0.7 
14,392     Wells Fargo & Co.   736,007    1.2 
          7,149,823    12.0 
                 
   Total Common Stock          
   (Cost $58,121,682)   57,382,892    96.4 
                 
PREFERRED STOCK: 1.3%
      South Korea: 1.3%          
1,839     Hyundai Motor Co.   174,263    0.3 
3,382     Hyundai Motor Co.- Series 2   343,208    0.6 
164     Samsung Electronics Co., Ltd. - Pref   255,503    0.4 
          772,974    1.3 
                 
      United Kingdom: 0.0%          
939,827  @  Rolls-Royce Holdings PLC - C Shares   1,211    0.0 
                 
   Total Preferred Stock          
   (Cost $531,311)   774,185    1.3 
Shares        Value   Percentage
of Net
Assets
 
RIGHTS: 0.0%
      Switzerland: 0.0%          
8,760  @  Credit Suisse Group AG  $4,070    0.0 
                 
   Total Rights          
   (Cost $–)   4,070    0.0 
                 
   Total Long-Term Investments          
   (Cost $58,652,993)   58,161,147    97.7 
                 
SHORT-TERM INVESTMENTS: 1.8%
      Mutual Funds: 1.8%          
1,056,476     BlackRock Liquidity Funds, FedFund, Institutional Class, 0.680%††          
      (Cost $1,056,476)   1,056,476    1.8 
                 
   Total Short-Term Investments          
   (Cost $1,056,476)   1,056,476    1.8 
                 
   Total Investments in Securities
(Cost $59,709,469)
  $59,217,623    99.5 
   Assets in Excess of Other Liabilities   270,222    0.5 
   Net Assets  $59,487,845    100.0 

  

†† Rate shown is the 7-day yield as of May 31, 2017.
# 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 $59,757,880.
   
  Net unrealized depreciation consists of:

 

Gross Unrealized Appreciation  $6,041,951 
Gross Unrealized Depreciation   (6,582,208)
Net Unrealized Depreciation  $(540,257)

   

Sector Diversification  Percentage
of Net Assets
 
Financials   26.4%
Industrials   10.9 
Consumer Staples   8.5 
Information Technology   8.1 
Health Care   8.0 
Consumer Discretionary   7.2 
Energy   6.8 
Telecommunication Services   6.7 
Utilities   6.0 
Materials   5.6 
Real Estate   3.5 
Short-Term Investments   1.8 
Assets in Excess of Other Liabilities   0.5 
Net Assets   100.0%

 

   

 

 

Voya International High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS

as of May 31, 2017 (Unaudited) (Continued)

    

Fair Value Measurements

 

The following is a summary of the fair valuations according to the inputs used as of May 31, 2017 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, 2017
 
Asset Table                    
Investments, at fair value                    
Common Stock                    
Australia  $   $4,645,686   $   $4,645,686 
Austria       280,816        280,816 
Belgium       305,895        305,895 
China   732,188    7,150,812        7,883,000 
Denmark       239,825        239,825 
Finland       197,454        197,454 
France       5,028,657        5,028,657 
Germany       3,409,867        3,409,867 
Hong Kong   225,985    1,403,390        1,629,375 
India       1,742,314        1,742,314 
Indonesia       721,923        721,923 
Italy       1,290,114        1,290,114 
Malaysia   256,500    665,006        921,506 
Netherlands       1,656,035        1,656,035 
Norway       268,283        268,283 
Singapore       298,219        298,219 
South Korea       3,431,151        3,431,151 
Spain       1,866,220        1,866,220 
Sweden       1,287,981        1,287,981 
Switzerland       3,610,088        3,610,088 
Taiwan       2,083,062        2,083,062 
United Kingdom   113,444    7,322,154        7,435,598 
United States   7,149,823            7,149,823 
Total Common Stock   8,477,940    48,904,952        57,382,892 
Preferred Stock       774,185        774,185 
Rights   4,070            4,070 
Short-Term Investments   1,056,476            1,056,476 
Total Investments, at fair value  $9,538,486   $49,679,137   $   $59,217,623 
Liabilities Table                    
Other Financial Instruments+                    
Written Options  $   $(222,860)  $   $(222,860)
Total Liabilities  $   $(222,860)  $   $(222,860)

     

+ 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, 2017, 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     5,834.200     AUD   06/01/17   $ 30,713     $ (59 )
  1,420     Morgan Stanley & Co. International PLC   Call on EURO STOXX 50® Index     3,587.580     EUR   06/01/17     57,496       (1,917 )
  590     Societe Generale   Call on FTSE 100 Index     7,359.850     GBP   06/01/17     45,853       (122,608 )

 

   

 

  

Voya International High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS

as of May 31, 2017 (Unaudited) (Continued)

 

Number of
Contracts
    Counterparty   Description   Exercise
Price
    Expiration
Date
  Premiums
Received
    Fair Value  
  700     Morgan Stanley & Co. International PLC   Call on Hang Seng Index     25,024.000     HKD   06/01/17   $ 22,250     $ (56,550 )
  7,400,000     Societe Generale   Call on Korea Stock Exchange KOSPI 200 Index     299.870     KRW   06/01/17     24,432       (32,106 )
  5,000     Societe Generale   Call on Taiwan Stock Exchange Weighted Index     9,988.210     TWD   06/01/17     11,238       (9,620 )
            Total Written OTC Options   $ 191,982     $ (222,860 )

    

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

   

   

 

  

Voya International High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS

as of May 31, 2017 (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 May 31, 2017 was as follows:

 

        Fair Value  
Derivatives not accounted for as hedging instruments        
             
Liability Derivatives   Instrument Type        
         
Equity contracts  Written options  $222,860 
Total Liability Derivatives     $222,860 

 

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, 2017:

 

   Morgan Stanley & Co. International PLC   Societe Generale   Totals 
Liabilities:               
Written options  $58,526   $164,334   $222,860 
Total Liabilities  $58,526   $164,334   $222,860 
                
Net OTC derivative instruments by counterparty, at fair value  $(58,526)  $(164,334)   (222,860)
                
Total collateral pledged by the Fund/(Received from counterparty)  $-   $110,000   $110,000 
                
Net Exposure(1)  $(58,526)  $(54,334)  $(112,860)

 

(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, 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: July 27, 2017  

 

By /s/ Todd Modic  
  Todd Modic  
  Senior Vice President and Chief Financial Officer  

 

Date: July 27, 2017