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: 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 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 May 31, 2017 (Unaudited)

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: 93.2%          
      Belgium: 0.4%      
76,500     Ageas  $3,090,322    0.4 
                 
      Canada: 3.1%      
73,547     Canadian Imperial Bank of Commerce - XTSE   5,750,479    0.7 
647,521     Cenovus Energy, Inc.   5,776,088    0.8 
452,914     Shaw Communications, Inc. - Class B   9,676,202    1.2 
64,581     TransCanada Corp.   2,998,019    0.4 
          24,200,788    3.1 
                 
      France: 12.0%      
217,693     BNP Paribas   15,369,298    1.9 
164,794     Casino Guichard Perrachon S.A.   10,159,777    1.3 
174,031     Cie de Saint-Gobain   9,727,171    1.2 
242,794  @  Eutelsat Communications   6,249,749    0.8 
426,000     Orange SA   7,484,961    1.0 
834,790     Engie SA   12,758,252    1.6 
102,397     Sanofi   10,142,858    1.3 
243,200     Total S.A.   12,847,842    1.6 
117,925     Vinci S.A.   10,314,566    1.3 
          95,054,474    12.0 
                 
      Germany: 1.2%      
522,367     Deutsche Bank AG   9,164,393    1.2 
                 
      Italy: 3.6%      
811,761     Assicurazioni Generali S.p.A.   12,825,010    1.6 
375,887     ENI S.p.A.   5,974,777    0.8 
531,892  @  UniCredit SpA   9,318,647    1.2 
          28,118,434    3.6 
                 
      Japan: 7.7%      
103,700     Canon, Inc.   3,564,290    0.4 
436,100     Itochu Corp.   6,189,742    0.8 
198,400     Japan Airlines Co. Ltd.   5,815,997    0.7 
1,937,800     Mitsubishi UFJ Financial Group, Inc.   12,024,633    1.5 
439,500     Mitsui & Co., Ltd.   5,931,688    0.8 
46,400     Murata Manufacturing Co., Ltd.   6,422,983    0.8 
968,800     Nissan Motor Co., Ltd.   9,286,980    1.2 
334,400     Sumitomo Mitsui Financial Group, Inc.   11,974,683    1.5 
          61,210,996    7.7 
                 
      Luxembourg: 0.8%      
287,444  @  ArcelorMittal   6,233,620    0.8 
                 
      Netherlands: 2.0%      
589,367     Royal Dutch Shell PLC   16,024,487    2.0 
                 
      Singapore: 1.3%          
2,418,800     Singapore Telecommunications Ltd.   6,570,244    0.8 
219,200     United Overseas Bank Ltd.   3,638,600    0.5 
          10,208,844    1.3 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)          
      Spain: 2.0%      
156,700     ACS Actividades de Construccion y Servicios S.A.  $6,270,843    0.8 
836,943     Telefonica S.A.   9,331,843    1.2 
          15,602,686    2.0 
                 
      Sweden: 1.6%      
867,200     Telefonaktiebolaget LM Ericsson   6,321,007    0.8 
392,101     Volvo AB - B Shares   6,404,368    0.8 
          12,725,375    1.6 
                 
      Switzerland: 4.2%      
440,566     Credit Suisse Group AG   6,016,551    0.8 
121,587     Novartis AG   9,950,102    1.2 
36,681     Roche Holding AG   10,070,732    1.3 
23,111     Zurich Insurance Group AG   6,800,270    0.9 
          32,837,655    4.2 
                 
      Taiwan: 0.9%      
197,567     Taiwan Semiconductor Manufacturing Co., Ltd. ADR   6,985,969    0.9 
                 
      United Kingdom: 8.4%      
2,330,813     Barclays PLC   6,308,916    0.8 
1,137,092     HSBC Holdings PLC (GBP)   9,901,114    1.3 
126,113     Imperial Brands PLC   5,901,074    0.7 
1,847,637     J Sainsbury PLC   6,693,175    0.8 
1,984,800     Kingfisher PLC   8,301,762    1.1 
241,023     Rio Tinto PLC   9,624,916    1.2 
330,950     SSE PLC   6,427,978    0.8 
4,437,054     Vodafone Group PLC   13,250,643    1.7 
          66,409,578    8.4 
                 
      United States: 44.0%      
215,100     Abbott Laboratories   9,821,466    1.2 
95,611     AbbVie, Inc.   6,312,238    0.8 
25,943  @  Allergan plc   5,800,127    0.7 
95,100     American Electric Power Co., Inc.   6,826,278    0.9 
59,606     Amgen, Inc.   9,253,235    1.2 
103,251     Apple, Inc.   15,772,623    2.0 
175,738     Bristol-Myers Squibb Co.   9,481,065    1.2 
77,200     Bunge Ltd.   6,173,684    0.8 
66,480     Caterpillar, Inc.   7,008,986    0.9 
264,779     CenturyLink, Inc.   6,606,236    0.8 
400,039     Cisco Systems, Inc.   12,613,230    1.6 
262,700     Citigroup, Inc.   15,903,858    2.0 
14,754     Conagra Brands, Inc.   568,619    0.1 
210,900     ConocoPhillips   9,425,121    1.2 
118,925     Eli Lilly & Co.   9,462,862    1.2 
114,495     Eversource Energy   7,106,705    0.9 
114,348     Exxon Mobil Corp.   9,205,014    1.2 
212,073  @  Freeport-McMoRan, Inc.   2,436,719    0.3 
405,450     Gap, Inc.   9,122,625    1.2 
414,431     General Electric Co.   11,347,121    1.4 
146,300     Gilead Sciences, Inc.   9,493,407    1.2 
62,531     International Business Machines Corp.   9,544,107    1.2 
91,664     Intel Corp.   3,309,987    0.4 

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya Global Equity Dividend and Premium Opportunity Fund as of May 31, 2017 (Unaudited) (Continued)

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)          
      United States: (continued)      
111,900     Las Vegas Sands Corp.  $6,616,647    0.8 
268,957     Macy's, Inc.   6,320,489    0.8 
432,244     Mattel, Inc.   9,902,710    1.3 
69,275     McDonald's Corp.   10,452,905    1.3 
101,100     Merck & Co., Inc.   6,582,621    0.8 
252,347     Metlife, Inc.   12,766,235    1.6 
187,076     Microsoft Corp.   13,065,388    1.7 
248,100     Mosaic Co.   5,614,503    0.7 
382,087     Pfizer, Inc.   12,475,141    1.6 
80,604     PNC Financial Services Group, Inc.   9,567,695    1.2 
109,182     Procter & Gamble Co.   9,617,842    1.2 
118,600     Qualcomm, Inc.   6,792,222    0.9 
87,600     Schlumberger Ltd.   6,096,084    0.8 
64,339     Seagate Technology   2,803,250    0.4 
46,500     Stanley Black & Decker, Inc.   6,400,260    0.8 
101,650     Symantec Corp.   3,081,012    0.4 
139,783     Verizon Communications, Inc.   6,519,479    0.8 
109,700     VF Corp.   5,901,860    0.8 
131,600     Wal-Mart Stores, Inc.   10,343,760    1.3 
63,600     WestRock Co.   3,461,112    0.4 
          346,976,528    44.0 
                 
   Total Common Stock          
   (Cost $772,920,848)   734,844,149    93.2 
                 
RIGHTS: 0.0%          
      Switzerland: 0.0%      
440,566  @  Credit Suisse Group AG   204,692    0.0 
                 
   Total Rights          
   (Cost $–)   204,692    0.0 

 

# of Contracts        Value   Percentage
of Net
Assets		 
PURCHASED OPTIONS: 0.1%          
      Options on Currencies: 0.1% 
10,500,000  @  Call USD vs. Put EUR, Strike @ 1.004, Exp. 06/20/17 Counterparty: Morgan Stanley & Co. International PLC   12    0.0 
6,000,000  @  Call USD vs. Put EUR, Strike @ 1.031, Exp. 07/20/17 Counterparty: Societe Generale   515    0.0 
8,200,000  @  Call USD vs. Put EUR, Strike @ 1.097, Exp. 08/21/17 Counterparty: BNP Paribas S.A.   33,360    0.0 
24,000,000  @  Call USD vs. Put GBP, Strike @ 1.191, Exp. 06/20/17 Counterparty: Royal Bank of Scotland PLC   4,354    0.0 
28,000,000  @  Call USD vs. Put GBP, Strike @ 1.262, Exp. 08/21/17 Counterparty: BNP Paribas S.A.   215,551    0.1 

# of Contracts        Value   Percentage
of Net
Assets		 
PURCHASED OPTIONS: (continued)          
      Options on Currencies: (continued) 
27,000,000  @  Call USD vs. Put GBP, Strike @ 1.234, Exp. 07/20/17 Counterparty: Societe Generale  $58,944    0.0 
16,000,000  @  Call USD vs. Put JPY, Strike @ 113.050, Exp. 07/20/17 Counterparty: Societe Generale   60,464    0.0 
14,500,000  @  Call USD vs. Put JPY, Strike @ 117.250, Exp. 06/20/17 Counterparty: Barclays Bank PLC   195    0.0 
17,000,000  @  Call USD vs. Put JPY, Strike @ 114.540, Exp. 08/21/17 Counterparty: BNP Paribas S.A.   57,436    0.0 
          430,831    0.1 
                 
   Total Purchased Options          
   (Cost $638,475)   430,831    0.1 
              
   Total Long-Term Investments          
   (Cost $773,559,323)   735,479,672    93.3 

 

Shares       Value   Percentage
of Net
Assets		 
SHORT-TERM INVESTMENTS: 5.6%          
      Mutual Funds: 5.6% 
44,382,926     BlackRock Liquidity Funds, FedFund, Institutional Class, 0.680%††          
      (Cost $44,382,926)   44,382,926    5.6 
                 
   Total Short-Term Investments          
   (Cost $44,382,926)   44,382,926    5.6 
              
   Total Investments in Securities
(Cost $817,942,249)		  $779,862,598    98.9 
   Assets in Excess of Other Liabilities   8,957,097    1.1 
   Net Assets  $788,819,695    100.0 

 

†† Rate shown is the 7-day yield as of May 31, 2017.
@ Non-income producing security.
ADR American Depositary Receipt
   
  Cost for federal income tax purposes is $818,278,275.
   
  Net unrealized depreciation consists of:

 

Gross Unrealized Appreciation  $75,813,293 
Gross Unrealized Depreciation   (114,228,970)
      
Net Unrealized Depreciation  $(38,415,677)

 

Sector Diversification  Percentage
of Net Assets		 
Financials   19.1%
Health Care   13.7 
Information Technology   11.5 
Consumer Discretionary   10.5 
Industrials   9.5 
Energy   8.8 
Telecommunication Services   6.3 
Consumer Staples   6.2 
Utilities   4.2 
Materials   3.4 
Purchased Options   0.1 
Short-Term Investments   5.6 
Assets in Excess of Other Liabilities   1.1 
Net Assets   100.0%

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya Global Equity Dividend and Premium Opportunity Fund 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                    
Belgium  $–   $3,090,322   $–   $3,090,322 
Canada   24,200,788    –    –    24,200,788 
France   –    95,054,474    –    95,054,474 
Germany   –    9,164,393    –    9,164,393 
Italy   –    28,118,434    –    28,118,434 
Japan   –    61,210,996    –    61,210,996 
Luxembourg   6,233,620    –    –    6,233,620 
Netherlands   –    16,024,487    –    16,024,487 
Singapore   –    10,208,844    –    10,208,844 
Spain   –    15,602,686    –    15,602,686 
Sweden   –    12,725,375    –    12,725,375 
Switzerland   –    32,837,655    –    32,837,655 
Taiwan   6,985,969    –    –    6,985,969 
United Kingdom   –    66,409,578    –    66,409,578 
United States   346,976,528    –    –    346,976,528 
Total Common Stock   384,396,905    350,447,244    –    734,844,149 
Rights   204,692    –    –    204,692 
Purchased Options   –    430,831    –    430,831 
Short-Term Investments   44,382,926    –    –    44,382,926 
Total Investments, at fair value  $428,984,523   $350,878,075   $–   $779,862,598 
Other Financial Instruments+                    
Futures   46,965    –    –    46,965 
Total Assets  $429,031,488   $350,878,075   $–   $779,909,563 
Liabilities Table                    
Other Financial Instruments+                    
Forward Foreign Currency Contracts  $–   $(4,494)  $–   $(4,494)
Futures   (364,332)   –    –    (364,332)
Written Options   –    (7,461,823)   –    (7,461,823)
Total Liabilities  $(364,332)  $(7,466,317)  $–   $(7,830,649)

 

+ 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.

 

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya Global Equity Dividend and Premium Opportunity Fund as of May 31, 2017 (Unaudited) (Continued)

 

At May 31, 2017, the following forward foreign currency contracts were outstanding for Voya Global Equity Dividend and Premium Opportunity Fund:

 

Currency Purchased   Currency Sold   Counterparty  Settlement
Date		  Unrealized
Appreciation
(Depreciation)		 
USD 907,709   JPY 101,026,498   Morgan Stanley & Co. International PLC  06/01/17  $(4,494)
                $(4,494)

 

At May 31, 2017, the following futures contracts were outstanding for Voya Global Equity Dividend and Premium Opportunity Fund:

 

Contract Description  Number
of Contracts		   Expiration
Date		  Notional
Value		   Unrealized
Appreciation/
(Depreciation)		 
Long Contracts                  
EURO STOXX 50® Index   386   06/16/17  $15,406,351   $46,965 
Nikkei 225 Index   64   06/08/17   5,681,986    (27,894)
           $21,088,337   $19,071 
Short Contracts                  
FTSE 100 Index   (63)  06/16/17   (6,094,391)   (213,101)
S&P 500 E-Mini   (153)  06/16/17   (18,444,915)   (123,337)
           $(24,539,306)  $(336,438)
                   

 

At May 31, 2017, the following over-the-counter written options were outstanding for Voya Global Equity Dividend and Premium Opportunity Fund: 

 

Notional
Amount/Number
of Contracts		   Counterparty  Description  Exercise
Price		  Expiration
Date		  Premiums
Received		   Fair Value 
Options on Indices                        
 2,200   Morgan Stanley & Co. International PLC  Call on EURO STOXX 50® Index   3,443.480   EUR  06/02/17  $157,965   $(261,768)
 2,000   Societe Generale  Call on EURO STOXX 50® Index   3,605.780   EUR  07/07/17   105,181    (66,912)
 2,100   Societe Generale  Call on EURO STOXX 50® Index   3,640.040   EUR  06/23/17   96,873    (27,283)
 2,900   Morgan Stanley & Co. International PLC  Call on FTSE 100 Index   7,142.890   GBP  06/02/17   318,028    (1,397,288)
 2,800   Morgan Stanley & Co. International PLC  Call on FTSE 100 Index   7,435.430   GBP  06/23/17   245,282    (478,628)
 2,800   Societe Generale  Call on FTSE 100 Index   7,532.350   GBP  07/07/17   255,834    (336,829)
 92,000   Morgan Stanley & Co. International PLC  Call on Nikkei 225 Index   18,932.310   JPY  06/02/17   246,592    (597,701)
 90,500   Morgan Stanley & Co. International PLC  Call on Nikkei 225 Index   19,880.130   JPY  07/07/17   221,259    (150,262)
 91,000   Societe Generale  Call on Nikkei 225 Index   20,098.320   JPY  06/23/17   186,652    (55,517)
 33,400   Morgan Stanley & Co. International PLC  Call on S&P 500 Index   2,372.830   USD  06/02/17   722,262    (1,309,078)
 33,800   Morgan Stanley & Co. International PLC  Call on S&P 500 Index   2,400.770   USD  07/07/17   630,691    (1,113,971)
 33,400   Societe Generale  Call on S&P 500 Index   2,402.580   USD  06/23/17   678,023    (869,134)
Options on Currencies                        
 8,200,000   BNP Paribas S.A.  Put USD vs. Call EUR   1.160   USD  08/21/17   38,540    (26,947)
 10,500,000   Morgan Stanley & Co. International PLC  Put USD vs. Call EUR   1.097    USD  06/20/17   98,490    (270,949)
 6,000,000   Societe Generale  Put USD vs. Call EUR   1.110   USD  07/20/17   42,000    (114,162)
 28,000,000   BNP Paribas S.A.  Put USD vs. Call GBP   1.350   USD  08/21/17   140,000    (74,694)
 24,000,000   Royal Bank of Scotland PLC  Put USD vs. Call GBP   1.300   USD  06/20/17   –    (127,744)
 27,000,000   Societe Generale  Put USD vs. Call GBP   1.330    USD  07/20/17   153,900    (82,642)
 14,500,000   Barclays Bank PLC  Put USD vs. Call JPY   105.250   USD  06/20/17   –    (6,165)
 17,000,000   BNP Paribas S.A.  Put USD vs. Call JPY   105.650    USD  08/21/17   85,000    (76,508)
 16,000,000   Societe Generale  Put USD vs. Call JPY   103.570    USD  07/20/17   88,000    (17,641)
            Total Written OTC Options  $4,510,572   $(7,461,823)

 

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

 

 

 

 

  PORTFOLIO OF INVESTMENTS
Voya Global Equity Dividend and Premium Opportunity Fund 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    
        
Asset Derivatives  Instrument Type     
Foreign exchange contracts  Purchased options  $430,831 
Equity contracts  Futures contracts   46,965 
Total Asset Derivatives     $477,796 
         
Liability Derivatives  Instrument Type     
Foreign exchange contracts  Forward foreign currency contracts  $4,494 
Equity Contracts  Futures contracts   364,332 
Equity Contracts  Written options   6,664,371 
Foreign exchange contracts  Written options   797,452 
Total Liability Derivatives     $7,830,649 

 

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:

 

   Barclays Bank PLC   BNP Paribas S.A.   Citibank N.A.   Goldman Sachs International   Morgan Stanley & Co. International PLC   Royal Bank of Scotland PLC   Societe Generale   Totals 
Assets:                                        
Purchased Options  $195   $306,347   $-   $-   $12   $4,354   $119,923   $430,831 
Total Assets  $195   $306,347   $-   $-   $12   $4,354   $119,923   $430,831 
                                         
Liabilities:                                        
Forward foreign currency contracts  $-   $-   $-   $-   $4,494   $-   $-   $4,494 
Written options   6,165    178,149    -    -    5,579,645    127,744    1,570,120    7,461,823 
Total Liabilities  $6,165   $178,149   $-   $-   $5,584,139   $127,744   $1,570,120   $7,466,317 
                                         
Net OTC derivative instruments by counterparty, at fair value  $(5,970)  $128,198   $-   $-   $(5,584,127)  $(123,390)  $(1,450,197)   (7,035,486)
                                         
Total collateral pledged by the Fund/(Received from counterparty)  $-   $-   $-   $-   $-   $-   $1,450,197   $1,450,197 
                                         
Net Exposure(1)(2)  $(5,970)  $128,198   $-   $-   $(5,584,127)  $(123,390)  $-   $(5,585,289)

 

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

(2) At May 31, 2017, the Fund had pledged $7,400,000 in cash collateral to Societe Generale. Excess cash collateral is not shown for financial reporting purposes.

 

 

 

 

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/ 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