OMB APPROVAL

OMB Number: 3235-0578

Expires: April 30, 2013

Estimated average burden hours per response: 5.6

 

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:   811-22438

 

ING Emerging Markets High Dividend Equity 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, 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, 2012

 



 

Item 1. Schedule of Investments

 

The schedules of investments as of the close of the reporting period are set forth below for:

 

ING Emerging Markets High Dividend Equity Fund

 

The schedules are not audited.

 



 

 

 

PORTFOLIO OF INVESTMENTS

ING Emerging Markets High Dividend Equity Fund

 

as of May 31, 2012 (Unaudited)

 

Shares

 

 

 

 

 

Value

 

Percentage
of Net
Assets

 

COMMON STOCK: 98.6%

 

 

 

 

 

 

 

 

 

Belgium: 0.9%

 

 

 

 

 

82,657

 

 

 

Oriflame Cosmetics S.A.

 

$

2,491,763

 

0.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brazil: 10.9%

 

 

 

 

 

281,636

 

 

 

Banco do Brasil S.A.

 

2,750,938

 

1.0

 

431,563

 

 

 

BM&F Bovespa S.A.

 

2,064,895

 

0.8

 

248,047

 

 

 

Cia Siderurgica Nacional S.A.

 

1,604,985

 

0.6

 

199,500

 

 

 

EDP - Energias do Brasil S.A.

 

1,247,338

 

0.5

 

175,200

 

 

 

Embraer SA

 

1,229,184

 

0.5

 

200,300

 

 

 

Estacio Participacoes SA

 

2,495,743

 

0.9

 

133,800

 

 

 

Itau Unibanco Holding S.A.

 

1,931,189

 

0.7

 

213,703

 

 

 

MRV Engenharia e Participacoes SA

 

905,948

 

0.3

 

43,199

 

 

 

Oi SA ADR

 

204,331

 

0.1

 

147,616

 

 

 

Oi SA ADR

 

1,777,296

 

0.7

 

260,209

 

 

 

Petroleo Brasileiro SA ADR

 

4,917,950

 

1.8

 

477,863

 

 

 

Porto Seguro SA

 

4,143,999

 

1.5

 

220,476

 

 

 

Vale SA

 

3,979,139

 

1.5

 

 

 

 

 

 

 

29,252,935

 

10.9

 

 

 

 

 

Chile: 1.2%

 

 

 

 

 

9,225,258

 

 

 

Enersis SA

 

3,194,663

 

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

China: 18.2%

 

 

 

 

 

872,000

 

 

 

BOC Hong Kong Holdings Ltd.

 

2,392,876

 

0.9

 

7,258,000

 

@

 

China Communications Services Corp., Ltd.

 

3,612,503

 

1.4

 

2,743,000

 

 

 

China High Speed Transmission Equipment Group Co., Ltd.

 

1,126,742

 

0.4

 

1,512,800

 

 

 

China Pacific Insurance Group Co., Ltd.

 

4,476,124

 

1.7

 

3,742,000

 

 

 

China Petroleum & Chemical Corp.

 

3,335,099

 

1.2

 

3,172,000

 

 

 

China Resources Power Holdings Co.

 

5,728,324

 

2.1

 

4,676,000

 

 

 

China Shanshui Cement Group Ltd.

 

3,710,945

 

1.4

 

1,532,000

 

 

 

China Shineway Pharmaceutical Group Ltd.

 

2,346,623

 

0.9

 

1,116,000

 

#, @

 

CITIC Securities Co. Ltd.

 

2,271,780

 

0.9

 

1,810,000

 

 

 

CNOOC Ltd.

 

3,264,369

 

1.2

 

2,678,000

 

@

 

Guangzhou Automobile Group Co. Ltd.

 

2,263,751

 

0.9

 

2,610,000

 

 

 

Harbin Electric Co. Ltd

 

2,526,708

 

0.9

 

5,913,000

 

 

 

Industrial and Commercial Bank of China Ltd.

 

3,585,170

 

1.3

 

1,942,000

 

@

 

Jiangsu Expressway Co. Ltd.

 

1,850,547

 

0.7

 

4,129,000

 

 

 

Lonking Holdings Ltd

 

1,277,320

 

0.5

 

3,292,500

 

 

 

Parkson Retail Group Ltd.

 

3,263,087

 

1.2

 

2,503,000

 

 

 

Zhejiang Expressway Co., Ltd.

 

1,718,332

 

0.6

 

 

 

 

 

 

 

48,750,300

 

18.2

 

 

 

 

 

Colombia: 0.4%

 

 

 

 

 

82,800

 

 

 

Petrominerales Ltd.

 

1,106,298

 

0.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Czech Republic: 1.4%

 

 

 

 

 

63,676

 

 

 

CEZ A/S

 

2,250,457

 

0.8

 

10,500

 

 

 

Komercni Banka AS

 

1,574,302

 

0.6

 

 

 

 

 

 

 

3,824,759

 

1.4

 

 

 

 

 

Hong Kong: 6.6%

 

 

 

 

 

110,700

 

 

 

China Mobile Ltd. ADR

 

5,615,811

 

2.1

 

1,329,000

 

 

 

Chow Sang Sang Holdings International Ltd.

 

2,764,359

 

1.0

 

4,444,500

 

 

 

Comba Telecom Systems Holdings Ltd.

 

2,004,388

 

0.7

 

199,500

 

 

 

Hang Seng Bank Ltd.

 

2,576,876

 

1.0

 

663,500

 

 

 

Link Real Estate Investment Trust

 

2,548,730

 

1.0

 

4,868,000

 

 

 

Pacific Basin Shipping Ltd.

 

2,165,699

 

0.8

 

 

 

 

 

 

 

17,675,863

 

6.6

 

 

 

 

 

Hungary: 0.5%

 

 

 

 

 

8,599

 

 

 

Richter Gedeon Nyrt

 

1,265,734

 

0.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

India: 3.2%

 

 

 

 

 

799,373

 

 

 

NTPC Ltd.

 

2,084,230

 

0.8

 

769,760

 

 

 

Oil & Natural Gas Corp., Ltd.

 

3,462,456

 

1.3

 

472,509

 

 

 

Oriental Bank Of Commerce

 

1,922,093

 

0.7

 

83,076

 

 

 

Punjab National Bank

 

1,114,780

 

0.4

 

 

 

 

 

 

 

8,583,559

 

3.2

 

 

 

 

 

Indonesia: 5.0%

 

 

 

 

 

891,500

 

 

 

Indo Tambangraya Megah PT

 

3,191,896

 

1.2

 

7,262,500

 

 

 

Indofood Sukses Makmur Tbk PT

 

3,640,181

 

1.3

 

6,396,500

 

 

 

Perusahaan Gas Negara PT

 

2,509,497

 

0.9

 

5,142,000

 

 

 

Telekomunikasi Indonesia Tbk PT

 

4,249,306

 

1.6

 

 

 

 

 

 

 

13,590,880

 

5.0

 

 

 

 

 

Malaysia: 4.0%

 

 

 

 

 

1,295,600

 

 

 

Berjaya Sports Toto BHD

 

1,702,334

 

0.6

 

1,583,400

 

 

 

CIMB Group Holdings Bhd

 

3,739,888

 

1.4

 

2,274,800

 

 

 

IOI Corp. Bhd

 

3,759,365

 

1.4

 

343,600

 

 

 

Public Bank BHD

 

1,492,584

 

0.6

 

 

 

 

 

 

 

10,694,171

 

4.0

 

 



 

 

 

PORTFOLIO OF INVESTMENTS

ING Emerging Markets High Dividend Equity Fund

 

as of May 31, 2012 (Unaudited) (continued)

 

Shares

 

 

 

 

 

Value

 

Percentage
of Net
Assets

 

 

 

 

 

Mexico: 1.4%

 

 

 

 

 

3,155,144

 

 

 

America Movil SAB de CV

 

$

3,693,776

 

1.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Poland: 3.6%

 

 

 

 

 

636,229

 

 

 

PGE SA

 

3,324,640

 

1.2

 

3,031,181

 

 

 

Polskie Gornictwo Naftowe I Gazownictwo SA

 

3,299,198

 

1.2

 

37,429

 

 

 

Powszechny Zaklad Ubezpieczen SA

 

3,133,163

 

1.2

 

 

 

 

 

 

 

9,757,001

 

3.6

 

 

 

 

 

Qatar: 1.4%

 

 

 

 

 

197,031

 

 

 

Commercial Bank of Qatar

 

3,820,395

 

1.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Russia: 4.3%

 

 

 

 

 

233,400

 

 

 

CTC Media, Inc.

 

2,072,592

 

0.8

 

669,018

 

 

 

Gazprom OAO ADR

 

5,863,943

 

2.2

 

216,649

 

 

 

Mobile Telesystems OJSC ADR

 

3,605,039

 

1.3

 

 

 

 

 

 

 

11,541,574

 

4.3

 

 

 

 

 

Singapore: 1.4%

 

 

 

 

 

282,000

 

 

 

United Overseas Bank Ltd.

 

3,855,805

 

1.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

South Africa: 8.5%

 

 

 

 

 

297,976

 

@

 

Adcock Ingram Holdings Ltd.

 

2,005,786

 

0.7

 

287,444

 

 

 

Gold Fields Ltd.

 

3,836,770

 

1.4

 

247,562

 

 

 

Impala Platinum Holdings Ltd.

 

3,915,023

 

1.5

 

290,057

 

 

 

MTN Group Ltd.

 

4,601,956

 

1.7

 

653,328

 

 

 

Sanlam Ltd.

 

2,577,647

 

1.0

 

50,508

 

 

 

Sasol Ltd.

 

2,153,655

 

0.8

 

273,053

 

 

 

Standard Bank Group Ltd.

 

3,674,092

 

1.4

 

 

 

 

 

 

 

22,764,929

 

8.5

 

 

 

 

 

South Korea: 10.3%

 

 

 

 

 

168,122

 

 

 

Hite Jinro Co. Ltd.

 

2,920,932

 

1.1

 

67,120

 

 

 

Hyundai Development Co.

 

1,335,902

 

0.5

 

169,840

 

 

 

Hyundai Securities Co.

 

1,170,252

 

0.4

 

114,710

 

 

 

Kangwon Land, Inc.

 

2,449,401

 

0.9

 

102,617

 

 

 

KB Financial Group, Inc.

 

3,199,830

 

1.2

 

61,618

 

 

 

KT&G Corp.

 

4,103,516

 

1.5

 

25,128

 

 

 

Posco

 

7,668,404

 

2.9

 

117,210

 

 

 

Woongjin Coway Co., Ltd.

 

3,504,807

 

1.3

 

138,540

 

 

 

Woori Finance Holdings Co., Ltd.

 

1,288,938

 

0.5

 

 

 

 

 

 

 

27,641,982

 

10.3

 

 

 

 

 

Taiwan: 12.3%

 

 

 

 

 

225,000

 

 

 

Catcher Technology Co., Ltd.

 

1,426,606

 

0.5

 

1,304,000

 

 

 

Cheng Uei Precision Industry Co., Ltd.

 

2,730,371

 

1.0

 

6,535,000

 

 

 

Chinatrust Financial Holding Co., Ltd.

 

3,639,242

 

1.4

 

1,274,000

 

 

 

E Ink Holdings, Inc.

 

1,348,681

 

0.5

 

527,000

 

 

 

Giant Manufacturing Co., Ltd.

 

2,476,871

 

0.9

 

243,750

 

 

 

HTC Corp.

 

3,504,166

 

1.3

 

153,000

 

 

 

Largan Precision Co. Ltd.

 

2,886,422

 

1.1

 

513,000

 

 

 

Novatek Microelectronics Corp., Ltd.

 

1,520,678

 

0.6

 

1,556,700

 

 

 

Powertech Technology, Inc.

 

3,012,891

 

1.1

 

595,000

 

 

 

Quanta Computer, Inc.

 

1,552,658

 

0.6

 

427,000

 

 

 

Synnex Technology International Corp.

 

953,489

 

0.4

 

1,376,000

 

 

 

Taiwan Semiconductor Manufacturing Co., Ltd.

 

3,818,647

 

1.4

 

2,712,000

 

 

 

Uni-President Enterprises Corp.

 

4,071,492

 

1.5

 

 

 

 

 

 

 

32,942,214

 

12.3

 

 

 

 

 

Thailand: 1.3%

 

 

 

 

 

355,400

 

 

 

PTT PCL

 

3,488,673

 

1.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United Kingdom: 1.3%

 

 

 

 

 

545,796

 

 

 

Eurasian Natural Resources Corp.

 

3,569,691

 

1.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States: 0.5%

 

 

 

 

 

44,776

 

 

 

Southern Copper Corp.

 

1,273,877

 

0.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Common Stock

 

 

 

 

 

 

 

 

 

(Cost $326,549,890)

 

264,780,842

 

98.6

 

SHORT-TERM INVESTMENTS: 1.1%

 

 

 

 

 

 

 

 

 

Mutual Funds: 1.1%

 

 

 

 

 

2,824,755

 

 

 

BlackRock Liquidity Funds, TempFund, Institutional Class

 

 

 

 

 

 

 

 

 

(Cost $2,824,755)

 

2,824,755

 

1.1

 

 

 

 

 

Total Short-Term Investments

 

 

 

 

 

 

 

 

 

(Cost $2,824,755)

 

2,824,755

 

1.1

 

 

 

 

 

Total Investments in Securities
(Cost $329,374,645)

 

$

267,605,597

 

99.7

 

 

 

 

 

Assets in Excess of Other Liabilities

 

780,528

 

0.3

 

 

 

 

 

Net Assets

 

$

268,386,125

 

100.0

 

 

 

 

 

 

 

 

 

 

 

 

 

#

 

Securities with purchases pursuant to Rule 144A or section 4(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 $331,321,174.

 

 

 

 

 

 

 

 

 

Net unrealized depreciation consists of:

 

 

 

 

 

 

 

 

 

Gross Unrealized Appreciation

 

$

4,024,694

 

 

 

 

 

 

 

Gross Unrealized Depreciation

 

(67,740,271)

 

 

 

 

 

 

 

Net Unrealized Depreciation

 

$

(63,715,577)

 

 

 

 



 

 

 

PORTFOLIO OF INVESTMENTS

ING Emerging Markets High Dividend Equity Fund

 

as of May 31, 2012 (Unaudited) (continued)

 

Sector Diversification

 

Percentage
of Net Assets

Consumer Discretionary

 

8.8%

Consumer Staples

 

7.7

Energy

 

12.6

Financials

 

24.4

Health Care

 

2.1

Industrials

 

4.9

Information Technology

 

9.2

Materials

 

11.1

Telecommunications

 

10.3

Utilities

 

7.5

Short-Term Investments

 

1.1

Assets in Excess of Other Liabilities

 

0.3

Net Assets

 

100.0%

 

Fair Value Measurements

 

The following is a summary of the fair valuations according to the inputs used as of May 31, 2012 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
5/31/2012

Asset Table

 

 

 

 

 

 

 

 

Investments, at value

 

 

 

 

 

 

 

 

Common Stock

 

 

 

 

 

 

 

 

Belgium

 

$

 

$

2,491,763

 

$

 

$

2,491,763

Brazil

 

29,252,935

 

 

 

29,252,935

Chile

 

3,194,663

 

 

 

3,194,663

China

 

 

48,750,300

 

 

48,750,300

Colombia

 

1,106,298

 

 

 

1,106,298

Czech Republic

 

2,250,457

 

1,574,302

 

 

3,824,759

Hong Kong

 

5,615,811

 

12,060,052

 

 

17,675,863

Hungary

 

 

1,265,734

 

 

1,265,734

India

 

 

8,583,559

 

 

8,583,559

Indonesia

 

 

13,590,880

 

 

13,590,880

Malaysia

 

 

10,694,171

 

 

10,694,171

Mexico

 

3,693,776

 

 

 

3,693,776

Poland

 

 

9,757,001

 

 

9,757,001

Qatar

 

 

3,820,395

 

 

3,820,395

Russia

 

11,541,574

 

 

 

11,541,574

Singapore

 

 

3,855,805

 

 

3,855,805

South Africa

 

 

22,764,929

 

 

22,764,929

South Korea

 

4,103,516

 

23,538,466

 

 

27,641,982

Taiwan

 

 

32,942,214

 

 

32,942,214

Thailand

 

 

3,488,673

 

 

3,488,673

United Kingdom

 

 

3,569,691

 

 

3,569,691

United States

 

1,273,877

 

 

 

1,273,877

Total Common Stock

 

62,032,907

 

202,747,935

 

 

264,780,842

Short-Term Investments

 

2,824,755

 

 

 

2,824,755

Total Investments, at value

 

$

64,857,662

 

$

202,747,935

 

$

 

$

267,605,597

Liabilities Table

 

 

 

 

 

 

 

 

Other Financial Instruments+

 

 

 

 

 

 

 

 

Written Options

 

$

 

$

(1,289,398)

 

$

 

$

(1,289,398)

Total Liabilities

 

$

 

$

(1,289,398)

 

$

 

$

(1,289,398)

 

+

 

Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, equity forwards, futures, swaps, and written options. Forward foreign currency contracts, equity forwards and futures are valued at the unrealized gain (loss) on the instrument. Swaps and written options are valued at the fair value of the instrument.

 



 

 

 

PORTFOLIO OF INVESTMENTS

ING Emerging Markets High Dividend Equity Fund

 

as of May 31, 2012 (Unaudited) (continued)

 

#

 

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 significant portion of the Fund’s investments are categorized as Level 2 investments.

 

 

 

 

 

There were no significant transfers between Level 1 and 2 during the period ended May 31, 2012.

 

 

 

Beginning
Balance
on
2/29/2012

 

Purchases

 

Sales

 

Accrued
Discounts/(Premiums)

 

Total
Realized
Gain (Loss)

 

Total
Unrealized
Appreciation
(Depreciation)

 

Transfers
into
Level 3

 

Transfers
Out of
Level 3

 

Ending
Balance
on
5/31/2012

Asset Table

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments, at value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

$

541,831

 

$

 

$

(271,606)

 

$

 

$

(2,422,833)

 

$

2,152,608

 

$

 

$

 

$

Total Investments, at value

 

$

541,831

 

$

 

$

(271,606)

 

$

 

$

(2,422,833)

 

$

2,152,608

 

$

 

$

 

$

 

As of May 31, 2012, total change in unrealized gain (loss) on Level 3 securities still held at period end and included in the change in net assets was $–.

 



 

ING Emerging Markets High Dividend Equity Fund Written OTC Options on May 31, 2012:

 

# of Contracts

 

Counterparty

 

Description

 

Exercise
Price

 

Expiration
Date

 

Premiums
Received

 

Fair Value

Options on Indices

 

 

 

 

 

 

 

 

 

 

 

771,000

 

Barclays Bank PLC

 

Call on iShares MSCI Emerging Markets Index Fund

 

36.540

USD

 

06/22/12

 

$

1,042,623

 

$

(1,269,008)

710,800

 

BNP Paribas Bank

 

Call on iShares MSCI Emerging Markets Index Fund

 

40.050

USD

 

06/08/12

 

766,882

 

(20,390)

 

 

 

 

Total Written OTC Options

 

$

1,809,505

 

$

(1,289,398)

 



 

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):   Ing Emerging Markets High Dividend Equity Fund

 

By

/s/ Shaun P. Mathews

 

 

Shaun P. Mathews

 

 

President and Chief Executive Officer

 

 

 

 

Date:

July 27, 2012

 

 

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, 2012

 

 

 

 

By

/s/ Todd Modic

 

 

Todd Modic

 

 

Senior Vice President and Chief Financial Officer

 

 

 

 

Date:

July 27, 2012