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: 811-21901

 

ALPINE GLOBAL DYNAMIC DIVIDEND FUND

(Exact name of registrant as specified in charter)

 

2500 Westchester Avenue, Suite 215, Purchase, New York 10577

(Address of principal executive offices) (Zip code)

 

Alpine Woods Capital Investors, LLC

2500 Westchester Avenue, Suite 215

Purchase, New York 10577

(Name and address of agent for service)

 

Copies of information to:

 

Rose F. DiMartino, Esq.		Sarah E. Cogan, Esq.
Willkie Farr & Gallagher LLP		Simpson Thacher & Bartlett LLP
787 Seventh Avenue		425 Lexington Ave
New York, NY 10019-6099		New York, NY 10174

 

Registrant’s telephone number, including area code: 914-251-0880

 

Date of fiscal year end: October 31, 2015

 

Date of reporting period: January 31, 2015

Item 1. Schedule of Investments.

 

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
January 31, 2015 (Unaudited)

 

				Security
Shares				Description		Value
Common Stocks-103.3%
Aerospace & Defense-1.1%
	7,000			Raytheon Co.		$	700,350
	6,700			United Technologies Corp.			769,026
							1,469,376
Air Freight & Logistics-1.0%
	8,500			FedEx Corp. (a)			1,437,435
Airlines-0.7%
	28,400			Japan Airlines Co., Ltd.			961,499
Auto Components-2.1%
	6,500			BorgWarner, Inc.			351,065
	11,900			Delphi Automotive PLC			817,887
	311,000			GKN PLC			1,717,600
							2,886,552
Automobiles-0.6%
	14,000			Thor Industries, Inc.			788,900
Banks-4.3%
	137,633			Banco Bilbao Vizcaya Argentaria SA			1,175,709
	85,100			Bangkok Bank PCL-NVDR			494,717
	28,200			Hana Financial Group, Inc.			824,307
	76,000			Mitsubishi UFJ Financial Group, Inc.			403,884
	132,500			Regions Financial Corp.			1,152,750
	47,500			Standard Chartered PLC			633,407
	9,600			Sumitomo Mitsui Financial Group, Inc.			322,146
	17,900			Wells Fargo & Co. (a)			929,368
							5,936,288
Beverages-2.5%
	14,700			Anheuser-Busch InBev NV-ADR (a)			1,794,429
	55,600			Diageo PLC			1,645,794
							3,440,223
Capital Markets-3.2%
	53,000			Daiwa Securities Group, Inc.			385,086
	111,000			Fortress Investment Group LLC-Class A			792,540
	16,500			HFF, Inc.-Class A			560,505
	13,500			Lazard, Ltd.-Class A			618,300
	56,336			Mediobanca SpA			487,994
	56,744			Och-Ziff Capital Management Group LLC-Class A (a)			629,291
	21,600			Schroders PLC			938,641
							4,412,357
Chemicals-1.7%
	90,000			Clariant AG (b)			1,445,964
	15,000			Symrise AG			981,793
							2,427,757
Commercial Services & Supplies-2.5%
	40,400			ISS A/S (b)			1,193,632
	40,400			KAR Auction Services, Inc.			1,378,044
	52,000			RR Donnelley & Sons Co.			856,440
							3,428,116

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
January 31, 2015 (Unaudited)

 

Communications Equipment-1.9%
	47,300			Cisco Systems, Inc.			1,247,064
	21,500			QUALCOMM, Inc. (a)			1,342,890
							2,589,954
Construction & Engineering-2.7%
	295,000			Abengoa SA-B Shares			871,599
	1,318,000			China Railway Construction Corp., Ltd.-Class H			1,507,300
	26,900			Vinci SA			1,413,169
							3,792,068
Containers & Packaging-1.3%
	370,000			DS Smith PLC			1,759,787
Diversified Financial Services-1.9%
	39,400			Bank of America Corp. (a)			596,910
	153,100			Cerved Information Solutions SpA (b)			826,864
	25,800			Citigroup, Inc.			1,211,310
							2,635,084
Electric Utilities-1.0%
	25,200			Northeast Utilities			1,400,616
Electronic Equipment, Instruments & Components-1.7%
	20,000			Park Electrochemical Corp.			434,200
	29,000			TE Connectivity, Ltd. (a)			1,925,310
							2,359,510
Energy Equipment & Services-1.0%
	31,691			Canadian Energy Services & Technology Corp.			133,927
	12,000			Halliburton Co.			479,880
	8,600			Schlumberger, Ltd.			708,554
							1,322,361
Food & Staples Retailing-1.7%
	4,000			Costco Wholesale Corp.			571,960
	24,100			Walgreens Boots Alliance, Inc. (a)			1,777,375
							2,349,335
Food Products-5.3%
	45,000			Dean Foods Co.			815,400
	35,600			Mondelez International, Inc.-Class A			1,254,544
	22,500			Nestle SA			1,718,347
	77,474			Pilgrim’s Pride Corp. (a)			2,103,419
	39,800			Pinnacle Foods, Inc.			1,431,606
							7,323,316
Gas Utilities-0.5%
	138,000			Infraestructura Energetica Nova SAB de CV			655,223
Health Care Equipment & Supplies-1.2%
	23,001			Medtronic PLC (a)			1,642,257
Health Care Providers & Services-3.4%
	9,500			HCA Holdings, Inc. (a)(b)			672,600
	8,600			Humana, Inc.			1,259,384
	9,400			McKesson Corp. (a)			1,998,910
	7,500			UnitedHealth Group, Inc.			796,875
							4,727,769

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
January 31, 2015 (Unaudited)

 

Hotels, Restaurants & Leisure-0.9%
	5,500			Las Vegas Sands Corp.			299,035
	7,500			McDonald’s Corp.			693,300
	12,000			Melco Crown Entertainment, Ltd.-ADR			288,000
							1,280,335
Household Durables-1.4%
	21,000			Lennar Corp.-Class A			943,110
	24,500			Ryland Group, Inc.			983,675
							1,926,785
Household Products-2.0%
	10,000			Colgate-Palmolive Co. (a)			675,200
	11,200			Energizer Holdings, Inc.			1,433,712
	6,700			The Clorox Co.			714,957
							2,823,869
Independent Power Producers & Energy Traders-1.1%
	28,818			Abengoa Yield PLC			948,689
	20,215			Pattern Energy Group, Inc.			590,682
							1,539,371
Industrial Conglomerates-0.5%
	6,300			Siemens AG			665,512
Insurance-2.1%
	4,500			Allianz SE			742,011
	50,000			BB Seguridade Participacoes SA			547,843
	11,600			Prudential Financial, Inc.			880,208
	2,400			Zurich Insurance Group AG (b)			795,788
							2,965,850
Internet & Catalog Retail-0.8%
	14,500			HSN, Inc.			1,122,880
Internet Software & Services-0.5%
	3,175			Equinix, Inc.			688,531
IT Services-2.0%
	20,500			Accenture PLC-Class A (a)			1,722,615
	6,500			International Business Machines Corp. (a)			996,515
							2,719,130
Life Sciences Tools & Services-1.3%
	13,900			Thermo Fisher Scientific, Inc. (a)			1,740,419
Machinery-3.2%
	1,063,500			China CNR Corp., Ltd.-Class H (b)(c)(d)			1,356,449
	12,200			Snap-on, Inc. (a)			1,619,062
	129,500			Volvo AB-B Shares			1,516,087
							4,491,598
Media-4.1%
	12,100			CBS Corp.-Class B			663,201
	12,000			Comcast Corp.-Class A (a)			637,740
	298,700			ITV PLC			988,553
	17,400			The Walt Disney Co. (a)			1,582,704
	5,000			Time Warner Cable, Inc.			680,650
	54,000			WPP PLC			1,187,491
							5,740,339
Multi-Utilities-1.1%
	38,700			CMS Energy Corp. (a)			1,460,151

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
January 31, 2015 (Unaudited)

 

Multiline Retail-1.1%
	3,500			Kering			706,171
	122,200			Marks & Spencer Group PLC			888,288
							1,594,459
Office Electronics-0.6%
	64,000			Xerox Corp.			842,880
Oil, Gas & Consumable Fuels-6.5%
	9,800			Chevron Corp.			1,004,794
	32,800			Enbridge, Inc. (a)			1,588,504
	15,400			Exxon Mobil Corp.			1,346,268
	3,900			Marathon Petroleum Corp.			361,101
	10,400			Occidental Petroleum Corp.			832,000
	13,500			Phillips 66			949,320
	108,500			Scorpio Tankers, Inc.			853,895
	30,000			The Williams Cos., Inc. (a)			1,315,800
	14,300			Total SA			734,027
							8,985,709
Paper & Forest Products-0.3%
	16,000			Svenska Cellulosa AB SCA-B Shares			385,666
Pharmaceuticals-5.8%
	5,400			Bayer AG			777,769
	11,500			Merck & Co., Inc.			693,220
	23,000			Novartis AG-ADR (a)			2,240,200
	6,600			Roche Holding AG			1,778,815
	15,000			Sanofi-ADR (a)			691,350
	32,700			Teva Pharmaceutical Industries, Ltd.-ADR (a)			1,859,322
							8,040,676
Real Estate Investment Trusts-6.2%
	14,000			American Tower Corp.			1,357,300
	20,500			Corrections Corp. of America			806,060
	125,663			Fibra Uno Administracion SA de CV			378,930
	140			Nippon Building Fund, Inc.			688,870
	10,947			Outfront Media, Inc.			310,347
	466,666			Prologis Property Mexico SA de CV (b)			907,523
	106,184			Scentre Group (b)			311,998
	48,400			Starwood Waypoint Residential Trust			1,173,216
	21,000			The Geo Group, Inc.			913,920
	103,000			Two Harbors Investment Corp. (a)			1,062,960
	85,220			Westfield Corp.			650,072
							8,561,196
Real Estate Management & Development-2.2%
	73,000			BR Malls Participacoes SA			414,344
	129,500			BR Properties SA			430,018
	46,000			Cheung Kong Holdings, Ltd.			877,808
	54,500			Mitsui Fudosan Co., Ltd.			1,377,847
							3,100,017
Road & Rail-2.5%
	390,000			All America Latina Logistica SA			559,583
	9,800			Canadian Pacific Railway, Ltd. (a)			1,711,766
	14,500			Ryder System, Inc.			1,200,455
							3,471,804
Semiconductors & Semiconductor Equipment-2.5%
	50,500			Applied Materials, Inc.			1,153,420
	23,000			Avago Technologies, Ltd. (a)			2,366,240
							3,519,660

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
January 31, 2015 (Unaudited)

 

Specialty Retail-2.9%
	21,400			Penske Automotive Group, Inc.			1,034,690
	477,800			Pets at Home Group PLC			1,551,328
	21,800			TJX Cos., Inc. (a)			1,437,492
							4,023,510
Technology, Hardware, Storage & Peripherals-3.1%
	24,800			Apple, Inc. (a)			2,905,568
	54,500			EMC Corp. (a)			1,413,185
							4,318,753
Textiles, Apparel & Luxury Goods-1.0%
	16,700			Carter’s, Inc.			1,360,883
Trading Companies & Distributors-1.2%
	99,000			Ashtead Group PLC			1,610,978
Transportation Infrastructure-1.2%
	311,500			Adani Ports & Special Economic Zone, Ltd.			1,701,357
Water Utilities-0.5%
	12,900			American Water Works Co., Inc. (a)			724,206
Wireless Telecommunication Services-1.4%
	56,500			Vodafone Group PLC-SP ADR (a)			1,984,845
				Total Common Stocks (Cost $131,989,909)			143,137,152
Equity-Linked Structured Notes-0.9%
Multi-Utilities-0.9%
	72,500			Veolia Environnement SA-Morgan Stanley BV			1,328,136
				Total Equity-Linked Structured Notes (Cost $1,421,789)			1,328,136
Principal Amount
Convertible Bonds-0.0% (e)
Household Durables-0.0% (e)
$	154,733			PDG Realty SA Empreendimentos e Participacoes-Series 8, 0.000%, 9/19/16 (Brazilian Real) (f)			577
				Total Convertible Bonds (Cost $55,510)			577
Total Investments (Cost $133,467,208)-104.2%							144,465,865
Liabilities in Excess of Other Assets-(4.2)%							(5,855,918	)
TOTAL NET ASSETS 100.0%						$	138,609,947

 

Percentages are stated as a percent of net assets.

(a) All or a portion of the security has been designated as collateral for the line of credit.

(b) Non-income producing security.

(c) Restricted under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. Liquid securities restricted under Rule 144A comprised 1.0% of the Fund’s net assets.

(d)Security fair valued in accordance with procedures approved by the Board of Trustees. These securities comprised 1.0% of the Fund’s net assets.

(e) Less than 0.05% of Net Assets.

(f) Represents a zero-coupon bond.

AB-Aktiebolag is the Swedish equivalent of a corporation.

ADR-American Depositary Receipt

AG-Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by shareholders.

A/S-Aktieselskab is the Danish term for a stock-based corporation.

BV-Besloten Vennootschap is the Dutch equivalent of a private limited liability company.

NV-Naamloze Vennootschap is the Dutch term for a public limited liability corporation.

NVDR-Non-Voting Depositary Receipts

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
January 31, 2015 (Unaudited)

 

PCL-Public Company Limited

PLC-Public Limited Company

SA-Generally designates corporations in various countries, mostly those employing the civil law.

SA de CV-Sociedad Anonima de Capital Variable is the Spanish equivalent to Variable Capital Company.

SAB de CV-Sociedad Anonima Bursátil de Capital Variable is the Spanish equivalent to Variable Capital Company.

SCA-Societe en Commandite par actions is the French equivalent of a limited partnership.

SE-SE Regulation. A European Company which can operate on a Europe-wide basis and be governed by Community law directly applicable in all Member States.

SP ADR-Sponsored American Depositary Receipt

SpA-Societa’ Per Azioni is an Italian shared company.

Alpine Global Dynamic Dividend Fund

Notes to Schedule of Portfolio Investments

January 31, 2015 (Unaudited)

 

1. Organization:

 

Alpine Global Dynamic Dividend Fund (the “Fund”) is a diversified, closed-end management investment company. The Fund was organized as a Delaware Statutory Trust on May 11, 2006, and had no operating history prior to July 26, 2006. The Board of Trustees (the “Board”) authorized an unlimited number of shares with no par value. The Fund’s primary investment objective is to seek high current dividend income, more than 50% of which qualifies for the reduced Federal income tax rates created by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund also focuses on longterm growth of capital as a secondary investment objective.

 

2. Significant Accounting Policies:

 

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from those estimates. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ.

 

A. Valuation of Securities:

 

The net asset value (“NAV”) of shares of the Fund is calculated by dividing the value of the Fund’s net assets by the number of outstanding shares. NAV is determined each day the New York Stock Exchange (“NYSE”) is open as of the close of regular trading (normally, 4:00 p.m., Eastern Time). In computing NAV, portfolio securities of the Fund are valued at their current market values determined on the basis of market quotations or if market quotations are not readily available or determined to be unreliable, through procedures and/or guidelines established by the Board. In computing the Fund’s NAV, equity securities that are traded on a securities exchange in the United States, except for option securities, are valued at the last reported sale price as of the time of valuation or, lacking any current reported sale at the time of valuation, at the mean between the most recent bid and asked quotations. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity-linked structured notes are valued by referencing the last reported sale or settlement price of the underlying security on the day of valuation. Foreign exchange adjustments are applied to the last reported price to convert the underlying security’s trading currency to the equity-linked structured note’s settlement currency. These investments are categorized as Level 2 of the fair value hierarchy. Each option security traded on a securities exchange in the United States is valued at the mid-point of the consolidated bid/ask quote for the option security. Forward currency contracts are valued based on third-party vendor quotations. Each security traded in the over-the-counter market and quoted on the NASDAQ National Market System is valued at the NASDAQ Official Closing Price (“NOCP”), as determined by NASDAQ, or lacking an NOCP, the last current reported sale price as of the time of valuation by NASDAQ, or lacking any current reported sale on NASDAQ at the time of valuation, at the mean between the most recent bid and asked quotations. Each over-the-counter option that is not traded through the Options Clearing Corporation is valued by the counterparty, or if the counterparty’s price is not readily available, then by using the Black-Scholes method. Debt securities are valued based on an evaluated mean price as furnished by pricing services approved by the Board, which may be based on market transactions for comparable securities and various relationships between securities that are generally recognized by institutional traders, a computerized matrix system, or appraisals derived from information concerning the securities or similar securities received from recognized dealers in those securities. Each other security traded over-the-counter is valued at the mean between the most recent bid and asked quotations. Short-term securities with maturities of less than one year are valued at amortized cost, which approximates fair value.

 

Equity securities that are principally traded in a foreign market are valued at the last current sale price at the time of valuation or lacking any current or reported sale, at the time of valuation, at the mean between the most recent bid and asked quotations as of the close of the appropriate exchange or other designated time. Trading in securities on European and Far Eastern securities exchanges and over-the-counter markets is normally completed at various times before the close of business on each day on which the NYSE is open. Trading of these securities may not take place on every NYSE business day. In addition, trading may take place in various foreign markets on Saturdays or on other days when the NYSE is not open and on which the Fund’s NAV is not calculated.

 

When market quotations are not readily available or when the valuation methods mentioned above are not reflective of a fair value of the security, the security is valued at fair value following procedures and/or guidelines approved by the Board. The Fund may also use fair value pricing, if the value of a security it holds is, pursuant to the Board guidelines, materially affected by events occurring before the Fund’s NAV is calculated but after the close of the primary market or market transactions for comparable securities and various relationships between securities that are generally recognized by institutional traders, a computerized matrix system, or appraisals derived from information concerning the securities or similar securities received from recognized dealers in those securities. The Board has approved the use of a third-party pricing vendor’s proprietary fair value pricing model to assist in determining current valuation for foreign equities and OTC derivatives traded in markets that close prior to the NYSE. When fair value pricing is employed, the value of the portfolio security used to calculate the Fund’s NAV may differ from quoted or official closing prices. The Fund may also fair value a security if the Fund or Adviser believes that the market price is stale. Other types of securities that the Fund may hold for which fair value pricing might be required include illiquid securities including restricted securities and private placements for which there is no public market.

As of January 31, 2015, the Fund held a security that was fair valued, which comprised 1.0% of the Fund’s net assets.

 

Fair Value Measurement:

 

In accordance with GAAP, the Fund uses a three-tier hierarchy to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entities’ own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

 

Level 1 -	Unadjusted quoted prices in active markets/exchanges for identical investments.
Level 2 -	Other significant observable inputs (including quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, etc.).
Level 3 -	Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

 

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

 

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

Various inputs are used in determining the value of the Fund’s investments as of the reporting period end. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under GAAP.

 

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

 

The following is a summary of the inputs used to value the Fund’s assets and liabilities carried at fair value as of January 31, 2015:

 

				Valuation Inputs
	Investments in Securities at Value*		Level 1				Level 2				Level 3				Total Value
	Common Stocks
	Consumer Discretionary		$	13,685,212			$	7,039,431			$	—			$	20,724,643
	Consumer Staples			12,572,602				3,749,807				—				16,322,409
	Energy			9,574,043				734,027				—				10,308,070
	Financials			15,673,643				11,937,149				—				27,610,792
	Health Care			13,594,537				2,556,584				—				16,151,121
	Industrials			10,232,161				12,797,582				—				23,029,743
	Information Technology			17,038,418				—				—				17,038,418
	Materials			—				4,187,544				—				4,187,544
	Telecommunication Services			1,984,845				—				—				1,984,845
	Utilities			5,779,567				—				—				5,779,567
	Equity-Linked Structured Notes			—				1,328,136				—				1,328,136
	Convertible Bond			—				577				—				577
	Total		$	100,135,028			$	44,330,837			$	—			$	144,465,865

 

				Valuation Inputs
	Other Financial Instruments		Level 1				Level 2				Level 3				Total Value
	Assets
	Forward Currency Contracts		$	—			$	544,260			$	—			$	544,260
	Liabilities
	Forward Currency Contracts			—				(362,865	)			—				(362,865	)
	Total		$	—			$	181,395			$	—			$	181,395

 

* For detailed industry descriptions, see accompanying Schedule of Portfolio Investments.

 

For the period ended January 31, 2015, there were no transfers between Level 1, Level 2 and Level 3. The Fund recognizes transfers as of the beginning of the year.

 

B. Federal and Other Income Taxes:

 

It is the Fund’s policy to comply with the Federal income and excise tax requirements of the Internal Revenue Code of 1986 (the “Code”), as amended, applicable to regulated investment companies and to timely distribute, all of its investment company taxable income and net realized capital gains to shareholders in accordance with the timing requirements imposed by the Code. Therefore, no Federal income tax provision is required. Capital gains realized on some foreign securities are subject to foreign taxes. Dividends and interest from non-U.S. sources received by the Fund are generally subject to non-U.S. withholding taxes at rates ranging up to 30%. Such capital gains and withholding taxes, which are accrued as applicable, may be reduced or eliminated under the terms of applicable U.S. income tax treaties, and the Fund intends to undertake procedural steps to claim the benefits of such treaties. Where available, the Fund will file refund claims for foreign taxes withheld.

 

As of January 31, 2015, net unrealized appreciation/(depreciation) of investments, excluding foreign currency, based on Federal tax costs was as follows:*

 

	Cost of investments				Gross unrealized appreciation				Gross unrealized depreciation				Net unrealized appreciation
	$	133,467,208			$	20,411,149			$	(9,412,492)			$	10,998,657

 

* Because tax adjustments are calculated annually, the above table reflects the tax adjustments outstanding at the Fund’s previous fiscal year end. For the previous fiscal year’s Federal income tax information, please refer to the Notes to Financial Statements section in the Fund’s most recent semi-annual or annual report.

 

C. Distributions to Shareholders:

 

The Fund intends to make a level distribution each month to its shareholders of the net investment income of the Fund after payment of Fund operating expenses. The level distribution rate may be modified or eliminated by the Board from time to time. If a monthly distribution exceeds the Fund’s monthly estimated investment company taxable income (which may include net short-term capital gain) and net tax-exempt income, the excess could result in a tax-free return of capital distribution from the Fund’s assets. The determination of a tax-free return of capital is made on an annual basis as further described below. The Fund’s final distribution for each calendar year will include any remaining investment company taxable income and net tax-exempt income undistributed during the year, as well as all net capital gains, if any, realized during the year. If the total distributions made in any fiscal year exceed annual investment company taxable income, net tax-exempt income and net capital gain, such excess distributed amount would be treated as ordinary dividend income to the extent of the Fund’s current and accumulated earnings and profits. Distributions in excess of the accumulated investment company taxable income, net tax-exempt income and net capital gain would first be a tax-free return of capital to the extent of the adjusted tax basis in the shares. After such adjusted tax basis is reduced to zero, the distribution would constitute capital gain (assuming the shares are held as capital assets). Distributions to shareholders are recorded by the Fund on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

 

D. Foreign Currency Translation Transactions:

 

The Fund may invest a portion of its assets in foreign securities. In the event that the Fund executes a foreign security transaction, the Fund will generally enter into a forward foreign currency contract to settle the foreign security transaction. The books and records of the Fund are maintained in U.S. dollars. Non-U.S. dollar-denominated amounts are translated into U.S. dollars as follows, with the resultant translations gains and losses recorded in the Statement of Operations:

 

i) market value of investment securities and other assets and liabilities at the exchange rate on the valuation date.

ii) purchases and sales of investment securities, income and expenses at the exchange rate prevailing on the respective date of such transactions.

 

E. Risks Associated with Foreign Securities and Currencies:

 

Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of domestic issuers. Such risks include future political and economic developments and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is a possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries. Generally, when the U.S. dollar rises in value against a foreign currency, the Fund’s investments denominated in that currency will lose value because that currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value.

 

Certain countries may also impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers or industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available to the Fund or result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.

 

F. Equity-Linked Structured Notes:

 

The Fund may invest in equity-linked structured notes. Equity-linked structured notes are securities which are specially designed to combine the characteristics of one or more underlying securities and their equity derivatives in a single note form. The return and/or yield or income component may be based on the performance of the underlying equity securities, and equity index, and/or option positions. Equity-linked structured notes are typically offered in limited transactions by financial institutions in either registered or non-registered form. An investment in equity-linked structured notes creates exposure to the credit risk of the issuing financial institution, as well as to the market risk of the underlying securities. There is no guaranteed return of principal with these securities and the appreciation potential of these securities may be limited by a maximum payment or call right. In certain cases, equity-linked structured notes may be more volatile and less liquid than less complex securities or other types of fixed-income securities. Such securities may exhibit price behavior that does not correlate with other fixed-income securities.

 

G. Forward Currency Contracts:

 

The Fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objective. The Fund may use forward currency contracts to gain exposure to, or economically hedge against, changes in the value of foreign currencies. A forward currency contract (“forward”) is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of the forward contract fluctuates with changes in forward currency exchange rates. The forward contract is marked-to-market daily and the change in market value is recorded by the Fund as unrealized appreciation or depreciation. When the forward contract is closed, a Fund records a realized gain or loss equal to the fluctuation in value during the period the forward contract was open. A Fund could be exposed to risk if a counterparty is unable to meet the terms of a forward or if the value of the currency changes unfavorably. The Fund’s forward contracts are not subject to a master netting agreement or similar agreement.

 

The following forward contracts were held as of January 31, 2015:

 

Description		Counterparty		Settlement Date		Currency			Settlement Value			Current Value				Unrealized Gain/(Loss)
Contracts Sold:
Swiss Franc		State Street Bank and Trust Company		06/25/15		3,300,000	CHF		$	3,281,296		$	3,617,843			$	(336,547	)
Euro		State Street Bank and Trust Company		06/25/15		8,600,000	EUR			10,250,254			9,732,503				517,751
British Pound		State Street Bank and Trust Company		06/25/15		3,000,000	GBP			4,540,800			4,514,291				26,509
Japanese Yen		State Street Bank and Trust Company		06/25/15		370,000,000	JPY			3,130,182			3,156,500				(26,318	)
												$	21,021,137			$	181,395

Item 2 - Controls and Procedures.

 

(a)

The Registrant’s principal executive officer and principal financial officer have evaluated the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of this filing and have concluded that the Registrant’s disclosure controls and procedures were effective, as of that date.

 

(b)

There was no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 3 – Exhibits.

 

Separate certifications for the Registrant’s principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached as Ex99.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.

 

ALPINE GLOBAL DYNAMIC DIVIDEND FUND
By:		/s/ Samuel A. Lieber
		Samuel A. Lieber
		President (Principal Executive Officer)
Date:		March 25, 2015

 

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/ Samuel A. Lieber
		Samuel A. Lieber
		President (Principal Executive Officer)
Date:		March 25, 2015

 

By:		/s/ Ronald G. Palmer, Jr.
		Ronald G. Palmer, Jr.
		Chief Financial Officer (Principal Financial Officer)
Date:		March 25, 2015