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: 811-21553

 

Voya Global Equity Dividend and Premium Opportunity 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, 2018

  

 

 

 

 

 

Item 1. Schedule of Investments

 

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

 

Voya Global Equity Dividend and Premium Opportunity Fund

 

The schedules are not audited.

 

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya Global Equity Dividend and Premium Opportunity Fund as of November 30, 2018 (Unaudited)

 

Shares         Value   Percentage
of Net
Assets
 
COMMON STOCK: 93.9%
        Canada: 2.0%          
 73,547      Canadian Imperial Bank of Commerce - XTSE  $6,172,047    0.9 
 425,114      Shaw Communications, Inc. - Class B   8,002,184    1.1 
            14,174,231    2.0 
                   
        France: 11.0%          
 200,493      BNP Paribas   10,084,480    1.5 
 386,931      Cie de Saint-Gobain   14,381,109    2.1 
 114,700      Danone   8,564,172    1.2 
 748,790      Engie SA   10,554,774    1.5 
 341,200      Orange SA   5,865,316    0.8 
 93,097      Sanofi   8,440,243    1.2 
 188,700      Total SA   10,495,498    1.5 
 95,025      Vinci SA   8,291,903    1.2 
            76,677,495    11.0 
                   
        Germany: 1.9%          
 33,100      Continental AG   5,001,770    0.7 
 144,122      Daimler AG   8,148,610    1.2 
            13,150,380    1.9 
                   
        Ireland: 1.2%          
 88,500      Medtronic PLC   8,631,405    1.2 
                   
        Italy: 1.4%          
 310,987      ENI S.p.A.   5,017,903    0.7 
 361,887      UniCredit SpA   4,671,123    0.7 
            9,689,026    1.4 
                   
        Japan: 5.8%          
 145,900      Japan Airlines Co. Ltd.   5,268,172    0.8 
 1,928,200      Mitsubishi UFJ Financial Group, Inc.   10,549,972    1.5 
 32,800      Murata Manufacturing Co., Ltd.   5,026,595    0.7 
 968,800      Nissan Motor Co., Ltd.   8,494,955    1.2 
 300,300      Sumitomo Mitsui Financial Group, Inc.   11,055,491    1.6 
            40,395,185    5.8 
                   
        Netherlands: 3.4%          
 179,444      ArcelorMittal   4,104,019    0.6 
 343,667      Royal Dutch Shell PLC - Class A   10,395,198    1.5 
 161,500      Unilever NV   8,962,374    1.3 
            23,461,591    3.4 
                   
        Singapore: 1.2%          
 2,418,800      Singapore Telecommunications Ltd.   5,439,469    0.8 
 149,500      United Overseas Bank Ltd.   2,745,034    0.4 
            8,184,503    1.2 
                   
        South Korea: 0.6%          
 113,217      Samsung Electronics Co., Ltd.   4,242,373    0.6 
Shares        Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)
      Spain: 2.1%          
149,400     ACS Actividades de Construccion y Servicios SA  $5,743,002    0.8 
977,843     Telefonica S.A.   8,797,112    1.3 
          14,540,114    2.1 
                 
      Switzerland: 5.6%          
2,120,200     Glencore PLC   7,903,501    1.1 
107,200     Nestle SA   9,145,553    1.3 
45,181     Roche Holding AG   11,728,273    1.7 
757,000     UBS Group AG   10,261,351    1.5 
          39,038,678    5.6 
                 
      United Kingdom: 7.6%          
2,330,813     Barclays PLC   4,839,836    0.7 
2,196,600     Kingfisher PLC   6,996,551    1.0 
550,200     Prudential PLC   10,846,501    1.5 
330,950     SSE PLC   4,639,769    0.7 
1,490,800     Standard Chartered PLC   11,629,596    1.7 
6,418,354     Vodafone Group PLC   13,867,678    2.0 
          52,819,931    7.6 
                 
      United States: 50.1%          
50,500     Allergan PLC   7,908,300    1.1 
84,100     American Electric Power Co., Inc.   6,537,934    0.9 
47,306     Amgen, Inc.   9,851,474    1.4 
115,851     Apple, Inc.   20,688,672    3.0 
208,838     Bristol-Myers Squibb Co.   11,164,479    1.6 
92,600     Bunge Ltd.   5,284,682    0.8 
139,100     Carnival Corp.   8,386,339    1.2 
353,639     Cisco Systems, Inc.   16,928,699    2.4 
219,300     Citigroup, Inc.   14,208,447    2.0 
163,300     ConocoPhillips   10,807,194    1.6 
48,525     Eli Lilly & Co.   5,757,006    0.8 
99,895     Eversource Energy   6,826,824    1.0 
114,348     Exxon Mobil Corp.   9,090,666    1.3 
184,650     Gap, Inc.   5,039,098    0.7 
1,515,231     General Electric Co.   11,364,233    1.6 
122,400     Gilead Sciences, Inc.   8,805,456    1.3 
117,664     Intel Corp.   5,802,012    0.8 
92,331     International Business Machines Corp.   11,473,973    1.7 
152,700     Las Vegas Sands Corp.   8,389,338    1.2 
344,044  (1)  Mattel, Inc.   4,782,212    0.7 
65,975     McDonald's Corp.   12,436,947    1.8 
150,800     Merck & Co., Inc.   11,964,472    1.7 
261,347     Metlife, Inc.   11,663,917    1.7 
178,176     Microsoft Corp.   19,757,937    2.8 
317,100     Mosaic Co.   11,415,600    1.6 
222,700     Oracle Corp.   10,858,852    1.6 
257,787     Pfizer, Inc.   11,917,493    1.7 
125,000     Philip Morris International, Inc.   10,816,250    1.6 
69,104     PNC Financial Services Group, Inc.   9,382,941    1.3 
101,682     Procter & Gamble Co.   9,609,966    1.4 
198,982     Qualcomm, Inc.   11,592,691    1.7 
216,402     Schlumberger Ltd.   9,759,730    1.4 
96,083     Verizon Communications, Inc.   5,793,805    0.8 

 

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya Global Equity Dividend and Premium Opportunity Fund as of November 30, 2018 (Unaudited) (Continued)

 

Shares      Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)         
     United States: (continued)      
 135,500   Walmart, Inc.  $13,231,575    1.9 
         349,299,214    50.1 
                
  Total Common Stock
(Cost $706,699,426)
   654,304,126    93.9 

  

      Value   Percentage
of Net
Assets
 
PURCHASED OPTIONS (2): 0.1%         
 Total Purchased Options
(Cost $619,688)
  886,187    0.1 
              
  Total Long-Term Investments
(Cost $707,319,114)
   655,190,313     94.0  
          

 

Shares      Value   Percentage
of Net
Assets
 
 SHORT-TERM INVESTMENTS: 4.3%  
     Mutual Funds: 4.3%      
 29,998,560 (3)  BlackRock Liquidity Funds, FedFund, Institutional Class, 2.110%
(Cost $29,998,560)
   29,998,560    4.3 
            
  Total Short-Term Investments
(Cost $29,998,560)
   29,998,560    4.3 
                
  Total Investments in Securities
(Cost $737,317,674)
  $685,188,873    98.3 
  Assets in Excess of Other Liabilities   11,671,029    1.7 
  Net Assets  $696,859,902    100.0 

 

(1) Non-income producing security.
(2) The tables below the Portfolio of Investments detail open purchased options which are non-income producing securities.
(3) Rate shown is the 7-day yield as of November 30, 2018.

 

Sector Diversification  Percentage
of Net Assets
 
Financials   17.0%
Information Technology   15.3 
Health Care   13.7 
Consumer Discretionary   9.7 
Consumer Staples   9.5 
Energy   8.0 
Communication Services   6.8 
Industrials   6.5 
Utilities   4.1 
Materials   3.3 
Purchased Options   0.1 
Short-Term Investments   4.3 
Assets in Excess of Other Liabilities   1.7 
Net Assets   100.0%

 

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya Global Equity Dividend and Premium Opportunity Fund as of November 30, 2018 (Unaudited) (Continued)

 

Fair Value Measurements
The following is a summary of the fair valuations according to the inputs used as of November 30, 2018 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,
2018
 
Asset Table                    
Investments, at fair value                    
Common Stock                    
Canada  $14,174,231   $   $   $14,174,231 
France       76,677,495        76,677,495 
Germany       13,150,380        13,150,380 
Ireland   8,631,405            8,631,405 
Italy       9,689,026        9,689,026 
Japan       40,395,185        40,395,185 
Netherlands       23,461,591        23,461,591 
Singapore       8,184,503        8,184,503 
South Korea       4,242,373        4,242,373 
Spain       14,540,114        14,540,114 
Switzerland       39,038,678        39,038,678 
United Kingdom       52,819,931        52,819,931 
United States   349,299,214            349,299,214 
Total Common Stock   372,104,850    282,199,276        654,304,126 
Purchased Options       886,187        886,187 
Short-Term Investments   29,998,560            29,998,560 
Total Investments, at fair value  $402,103,410   $283,085,463   $   $685,188,873 
Other Financial Instruments+                    
Futures   141,478            141,478 
Total Assets  $402,244,888   $283,085,463   $   $685,330,351 
Liabilities Table                    
Other Financial Instruments+                    
Futures  $(1,522,354)  $   $   $(1,522,354)
Written Options       (3,876,798)       (3,876,798)
Total Liabilities  $(1,522,354)  $(3,876,798)  $   $(5,399,152)

 

+ Other Financial Instruments 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 November 30, 2018, the following futures contracts were outstanding for Voya Global Equity Dividend and Premium Opportunity Fund:

 

Description  Number
of Contracts
   Expiration
Date
  Notional
Value
   Unrealized
Appreciation/
(Depreciation)
 
Short Contracts:                  
EURO STOXX 50® Index   (886)   12/21/18  $(31,726,325)  $(132,586)
FTSE 100 Index   (418)   12/21/18   (37,119,218)   141,478 
Nikkei 225 Index   (176)   12/13/18   (17,345,725)   (509,629)
S&P 500® E-Mini   (334)   12/21/18   (46,063,610)   (880,139)
           $(132,254,878)  $(1,380,876)

 

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya Global Equity Dividend and Premium Opportunity Fund as of November 30, 2018 (Unaudited) (Continued)

 

At November 30, 2018, the following over-the-counter purchased foreign currency options were outstanding for Voya Global Equity Dividend and Premium Opportunity Fund:

 

Description  Counterparty  Expiration
Date
  Exercise
Price
  Notional
Amount
   Cost   Fair Value 
                             
Put EUR vs. Call USD  BNP Paribas S.A.  12/20/18   1.147  USD   14,250,000   $71,250   $191,056 
Put EUR vs. Call USD  Societe Generale  01/18/19   1.117  USD   15,000,000    67,500    63,028 
Put EUR vs. Call USD  BNP Paribas S.A.  02/20/19   1.113  USD   13,000,000    64,350    70,896 
Put GBP vs. Call USD  BNP Paribas S.A.  12/20/18   1.276  USD   15,000,000    94,500    199,214 
Put GBP vs. Call USD  Societe Generale  01/18/19   1.249  USD   14,500,000    101,500    161,777 
Put GBP vs. Call USD  Societe Generale  02/20/19   1.216  USD   13,000,000    116,350    118,237 
Put JPY vs. Call USD  BNP Paribas S.A.  12/20/18   114.800  USD   10,000,000    40,000    14,785 
Put JPY vs. Call USD  Morgan Stanley & Co. International PLC  02/20/19   114.950  USD   8,250,000    34,238    41,368 
Put USD vs. Call USD  Morgan Stanley & Co. International PLC  01/18/19   114.800  USD   7,500,000    30,000    25,826 
                     $619,688   $886,187 

 

At November 30, 2018, the following OTC written foreign currency options were outstanding for Voya Global Equity Dividend and Premium Opportunity Fund:  

 

Description  Counterparty  Expiration
Date
  Exercise
Price
  Notional
Amount
   Premiums
Received
   Fair Value 
                         
Put USD vs. Call EUR  BNP Paribas S.A.  12/20/18   1.215  USD   14,250,000   $71,250   $(62)
Put USD vs. Call EUR  Societe Generale  01/18/19   1.187  USD   15,000,000    67,500    (8,693)
Put USD vs. Call EUR  BNP Paribas S.A.  02/20/19   1.179  USD   13,000,000    64,350    (35,028)
Put USD vs. Call GBP  BNP Paribas S.A.  12/20/18   1.372  USD   15,000,000    94,500    (3,958)
Put USD vs. Call GBP  Societe Generale  01/18/19   1.349  USD   14,500,000    101,500    (41,976)
Put USD vs. Call GBP  Societe Generale  02/20/19   1.338  USD   13,000,000    116,350    (94,741)
Put USD vs. Call JPY  BNP Paribas S.A.  12/20/18   107.420  USD   10,000,000    40,000    (1,045)
Put USD vs. Call JPY  Morgan Stanley & Co. International PLC  01/18/19   107.370  USD   7,500,000    30,000    (5,878)
Put USD vs. Call JPY  Morgan Stanley & Co. International PLC  02/20/19   107.270  USD   8,250,000    34,238    (17,988)
                     $619,688   $(209,369)

 

At November 30, 2018, the following OTC written equity options were outstanding for Voya Global Equity Dividend and Premium Opportunity Fund:

 

Description  Counterparty  Put/Call  Expiration
Date
  Exercise
Price
  Number of
Contracts
   Notional
Amount
   Premiums
Received
   Fair Value 
         
EURO STOXX 50® Index  Morgan Stanley & Co. International PLC  Call  12/07/18   3,233.000   EUR   3,900    12,375,207   $233,372   $(56,357)
EURO STOXX 50® Index  Societe Generale  Call  12/21/18   3,250.823   EUR   3,800    12,057,894    223,500    (86,421)
EURO STOXX 50® Index  BNP Paribas S.A.  Call  01/04/19   3,226.685   EUR   3,900    12,375,207    215,824    (157,532)
FTSE 100 Index  BNP Paribas S.A.  Call  12/07/18   7,100.000   GBP   1,600    11,168,384    201,828    (46,843)
FTSE 100 Index  BNP Paribas S.A.  Call  12/21/18   7,167.834   GBP   1,500    10,470,360    196,676    (65,410)
FTSE 100 Index  BNP Paribas S.A.  Call  01/04/19   7,140.448   GBP   1,600    11,168,384    194,005    (124,744)
Nikkei 225 Index  BNP Paribas S.A.  Call  12/07/18   22,974.000   JPY   41,200    920,863,672    139,481    (22,909)
Nikkei 225 Index  Societe Generale  Call  12/21/18   22,687.000   JPY   43,200    965,565,792    179,769    (93,144)
Nikkei 225 Index  BNP Paribas S.A.  Call  01/04/19   22,039.050   JPY   44,800    1,001,327,488    157,420    (254,924)
S&P 500®  Societe Generale  Call  12/07/18   2,828.419   USD   29,800    82,253,066    1,215,393    (145,233)
S&P 500®  Societe Generale  Call  12/21/18   2,765.223   USD   28,900    79,768,913    1,312,262    (1,264,932)
S&P 500®  BNP Paribas S.A.  Call  01/04/19   2,781.285   USD  29,200    80,596,964    1,170,429    (1,348,980)
                             $5,439,959   $(3,667,429)

 

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya Global Equity Dividend and Premium Opportunity Fund as of November 30, 2018 (Unaudited) (Continued)

 

Currency Abbreviations
EUR - EU Euro
GBP - British Pound
JPY - Japanese Yen
USD - United States Dollar

 

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, 2018 was as follows:

 

   Fair Value 
Derivatives not accounted for as hedging instruments     
         
Asset Derivatives Instrument Type     
Foreign exchange contracts Purchased options  $886,187 
Equity contracts  Futures contracts   141,478 
Total Asset Derivatives     $1,027,665 
         
Liability Derivatives Instrument Type     
Equity Contracts Futures contracts  $1,522,354 
Equity Contracts Written options   3,667,429 
Foreign exchange contracts  Written options   209,369 
Total Liability Derivatives     $5,399,152 

 

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, 2018:

 

   BNP Paribas S.A.   Morgan Stanley & Co. International PLC   Societe Generale   Totals 
Assets:                    
Purchased Options  $475,951   $67,194   $343,042   $886,187 
Total Assets  $475,951   $67,194   $343,042   $886,187 
                     
Liabilities:                    
Written options  $2,061,435   $80,223   $1,735,140   $3,876,798 
Total Liabilities  $2,061,435   $80,223   $1,735,140   $3,876,798 
                     
Net OTC derivative instruments by counterparty, at fair value  $(1,585,484)  $(13,029)  $(1,392,098)   (2,990,611)
                     
Total collateral pledged by the Fund/(Received from counterparty)  $1,330,000   $13,029   $730,000   $2,073,029 
                     
Net Exposure(1)(2)  $(255,484)  $-   $(662,098)  $(917,582)

 

(1)Positive net exposure represents amounts due from each respective counterparty. Negative exposure represents amounts due from the Fund.

(2)At November 30, 2018, the Fund had pledged $170,000 in cash collateral to Morgan Stanley & Co. International PLC. Excess cash collateral is not shown for financial reporting purposes.

 

At November 30, 2018, the aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments at period end were:

 

Cost for federal income tax purposes was $738,583,678.

 

Net unrealized depreciation consisted of:

 

Gross Unrealized Appreciation  $71,628,297 
Gross Unrealized Depreciation   (123,147,298)
      
Net Unrealized Depreciation  $(51,519,001)

 

 

 

 

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 Global Equity Dividend and Premium Opportunity Fund

 

By /s/ Michael Bell  
  Michael Bell  
  Chief Executive Officer  
     
Date: January 25, 2019  

 

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/ Michael Bell  
  Michael Bell  
  Chief Executive Officer  

 

Date: January 25, 2019  

 

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

 

Date: January 25, 2019