Edgar Filing: Voya Emerging Markets High Dividend Equity Fund

Fair Value

Liability Derivatives

Instrument Type

Equity contracts

Written options

Total Liability Derivatives

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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

Voya 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, 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, 2014

Item 1. Schedule of Investments

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

Voya Emerging Markets High Dividend Equity Fund

The schedules are not audited.

	PORTFOLIO OF INVESTMENTS
Voya Emerging Markets High Dividend Equity Fund	as of November 30, 2014 (Unaudited)

Shares				Value		Percentage of Net Assets
COMMON STOCK: 90.2%
			Brazil: 5.3%
	547,825		BM&F Bovespa S.A.	$	2,243,405		0.9
	430,712		Cia Energetica de Minas Gerais ADR		2,377,530		1.0
	171,315		Cia Hering		1,630,747		0.7
	236,199		Petroleo Brasileiro SA ADR		2,411,592		1.0
	133,585		Totvs S.A.		1,872,619		0.8
	164,745	@	Tractebel Energia S.A.		2,221,223		0.9
					12,757,116		5.3

			Chile: 2.6%
	129,578		Banco Santander Chile ADR		2,832,575		1.2
	10,431,463		Enersis SA		3,496,899		1.4
					6,329,474		2.6

			China: 19.6%
	743,500		BOC Hong Kong Holdings Ltd.		2,622,686		1.1
	2,176,000		China BlueChemical Ltd.		786,985		0.3
	5,510,000		China Communications Services Corp., Ltd.		2,681,111		1.1
	6,380,000		China Construction Bank		4,825,753		2.0
	378,000		China Life Insurance Co., Ltd.		1,335,087		0.6
	53,549		China Mobile Ltd. ADR		3,305,045		1.4
	3,671,200		China Petroleum & Chemical Corp.		2,971,772		1.2
	1,126,000		China Resources Power Holdings Co.		3,283,917		1.4
	7,276,000		China Shanshui Cement Group Ltd.		2,767,275		1.2
	481,000		China Shineway Pharmaceutical Group Ltd.		816,739		0.4
	1,975,000		CNOOC Ltd.		2,853,844		1.2
	1,160,000		COSCO Pacific Ltd.		1,572,369		0.7
	2,386,000		Harbin Electric Co. Ltd.		1,490,334		0.6
	7,200,768		Industrial and Commercial Bank of China Ltd.		4,866,949		2.0
	2,174,000		Jiangsu Expressway Co. Ltd.		2,463,149		1.0
	4,704,500		Parkson Retail Group Ltd.		1,290,414		0.5
	878,000		Shanghai Industrial Holdings Ltd.		2,702,051		1.1
	417,000		Shanghai Pharmaceuticals Holding Co. Ltd.		991,742		0.4
	872,000		Wumart Stores, Inc.		818,563		0.3
	2,255,000		Zhejiang Expressway Co., Ltd.		2,523,890		1.1
					46,969,675		19.6

			Czech Republic: 1.9%
	77,946		CEZ AS		2,168,007		0.9
	10,657		Komercni Banka AS		2,368,404		1.0
					4,536,411		1.9

			Egypt: 0.3%
	245,707	@	Global Telecom Holding GDR		716,407		0.3

			Greece: 0.7%
	736,559		National Bank of Greece SA		1,747,985		0.7

			Hong Kong: 3.5%
	582,228		AIA Group Ltd.		3,356,985		1.4
	34,950,000		Emperor Watch & Jewellery Ltd.		1,596,787		0.7
	1,146,000		Hang Lung Properties Ltd.		3,438,637		1.4
					8,392,409		3.5

			Hungary: 0.7%
	1,189,307		Magyar Telekom Telecommunications PLC		1,635,824		0.7

			India: 5.9%
	118,557		Bank of Baroda		2,068,557		0.9
	535,299		Coal India Ltd.		3,067,900		1.3
	1,299,495		NTPC Ltd.		2,983,101		1.2
	491,845		Oil & Natural Gas Corp., Ltd.		3,012,985		1.3
	102,808		Punjab National Bank		1,771,476		0.7
	156,678		Tata Steel Ltd.		1,192,285		0.5
					14,096,304		5.9

			Indonesia: 1.2%
	5,333,300		Indofood Sukses Makmur Tbk PT		2,929,413		1.2

			Malaysia: 4.0%
	1,711,900		AirAsia BHD		1,305,197		0.5
	1,281,921		Berjaya Sports Toto BHD		1,318,872		0.6
	1,573,500		IJM Corp. Bhd		3,153,978		1.3
	1,647,300		IOI Corp. Bhd		2,347,372		1.0
	502,000		Malayan Banking BHD		1,402,914		0.6
					9,528,333		4.0

			Mexico: 2.1%
	1,268,689		Grupo Financiero Santander Mexico SAB de CV		2,903,300		1.2
	74,050		Southern Copper Corp.		2,217,797		0.9
					5,121,097		2.1

			Panama: 0.6%
	13,552		Copa Holdings S.A.		1,516,604		0.6

			Poland: 3.7%
	296,800		Energa SA		2,075,567		0.9
	95,676		PKP Cargo SA		2,207,768		0.9

	PORTFOLIO OF INVESTMENTS
Voya Emerging Markets High Dividend Equity Fund	as of November 30, 2014 (Unaudited) (Continued)

Shares				Value		Percentage of Net Assets
COMMON STOCK: (continued)
			Poland: (continued)
	207,861		Powszechna Kasa Oszczednosci Bank Polski S.A.	$	2,317,619		1.0
	15,301		Powszechny Zaklad Ubezpieczen SA		2,174,971		0.9
					8,775,925		3.7

			Qatar: 1.2%
	73,098		Commercial Bank of Qatar		1,463,194		0.6
	25,982		Industries Qatar QSC		1,359,247		0.6
					2,822,441		1.2

			Russia: 5.2%
	269,241		CTC Media, Inc.		1,604,676		0.7
	499,078		Gazprom OAO ADR		2,917,111		1.2
	6,995		Lukoil OAO ADR		325,603		0.1
	52,203		Lukoil OAO		2,391,077		1.0
	168,828		Mobile Telesystems OJSC ADR		2,063,078		0.8
	154,970		Phosagro OAO GDR		1,720,167		0.7
	172,096		Severstal		1,563,759		0.7
					12,585,471		5.2

			Singapore: 1.0%
	1,596,000		First Resources Ltd.		2,373,967		1.0

			South Africa: 6.1%
	115,933		Barclays Africa Group Ltd.		1,863,940		0.8
	166,491		The Foschini Group Ltd.		2,189,719		0.9
	783,290		Growthpoint Properties Ltd.		1,959,973		0.8
	169,341		MTN Group Ltd.		3,334,381		1.4
	904,505		PPC Ltd.		2,088,372		0.9
	253,058		Standard Bank Group Ltd.		3,106,740		1.3
					14,543,125		6.1

			South Korea: 11.4%
	136,502		Hite Jinro Co. Ltd.		3,106,128		1.3
	130,520		Hyundai Marine & Fire Insurance Co., Ltd.		3,134,751		1.3
	9,049		Hyundai Motor Co.		1,453,774		0.6
	71,340		Kangwon Land, Inc.		2,101,203		0.9
	83,120		KB Financial Group, Inc.		2,912,951		1.2
	89,765		KT Corp.		2,645,777		1.1
	7,344		POSCO		2,005,526		0.8
	4,269		Samsung Electronics Co., Ltd.		4,945,965		2.1
	72,070		Shinhan Financial Group Co., Ltd.		3,222,839		1.3
	23,586		SK Innovation Co. Ltd.		1,818,934		0.8
					27,347,848		11.4

			Taiwan: 9.1%
	695,959		Cheng Uei Precision Industry Co., Ltd.		1,160,168		0.5
	4,624,371		CTBC Financial Holding Co. Ltd		3,140,171		1.3
	192,583		MediaTek, Inc.		2,889,087		1.2
	4,047,466		Mega Financial Holdings Co., Ltd.		3,288,310		1.3
	139,000		Phison Electronics Corp.		929,334		0.4
	1,271,700		Powertech Technology, Inc.		2,124,399		0.9
	950,000		Quanta Computer, Inc.		2,362,068		1.0
	1,290,000		Taiwan Semiconductor Manufacturing Co., Ltd.		5,935,809		2.5
					21,829,346		9.1

			Thailand: 1.4%
	285,400		PTT PCL		3,326,378		1.4

			Turkey: 2.7%
	2,066,554		Emlak Konut Gayrimenkul Yatirim Ortakligi AS		2,624,183		1.1
	1,224,008		Turk Telekomunikasyon AS		3,912,862		1.6
					6,537,045		2.7

		Total Common Stock
		(Cost $227,002,102)			216,418,598		90.2

PREFERRED STOCK: 8.1%
			Brazil: 5.4%
	312,502		Gerdau SA		1,306,442		0.5
	186,541		Itau Unibanco Holding S.A.		2,816,452		1.2
	819,125		Randon Participacoes SA		1,788,594		0.8
	166,531		Telefonica Brasil SA		3,421,462		1.4
	462,235		Vale SA		3,577,481		1.5
					12,910,431		5.4

			Russia: 0.5%
	1,202,255		Sberbank of Russia		1,255,005		0.5

			South Korea: 2.2%
	17,367		Hyundai Motor Co. - Series 2		2,073,287		0.9
	3,392		Samsung Electronics Co., Ltd.		3,219,930		1.3
					5,293,217		2.2

		Total Preferred Stock
		(Cost $23,019,120)			19,458,653		8.1

		Total Long-Term Investments
		(Cost $250,021,222)			235,877,251		98.3

	PORTFOLIO OF INVESTMENTS
Voya Emerging Markets High Dividend Equity Fund	as of November 30, 2014 (Unaudited) (Continued)

Value

Percentage
of Net
Assets

SHORT-TERM INVESTMENTS: 1.9%

Mutual Funds: 1.9%

4,531,148

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.030%††

(Cost $4,531,148)

4,531,148

1.9

Total Short-Term Investments

(Cost $4,531,148)

4,531,148

1.9

Total Investments in Securities
(Cost $254,552,370)

240,408,399

100.2

Liabilities in Excess of Other Assets

(551,643

)

(0.2

)

Net Assets

239,856,756

100.0

††	Rate shown is the 7-day yield as of November 30, 2014.
@	Non-income producing security

ADR	American Depositary Receipt
GDR	Global Depositary Receipt

Cost for federal income tax purposes is $256,969,351.

Net unrealized depreciation consists of:

Gross Unrealized Appreciation	$	18,682,971
Gross Unrealized Depreciation		(35,243,923	)

Net Unrealized Depreciation	$	(16,560,952	)

Sector Diversification	Percentage of Net Assets
Financials		30.3	%
Information Technology		10.7
Energy		10.5
Telecommunication Services		9.8
Industrials		9.2
Materials		8.0
Utilities		7.7
Consumer Discretionary		6.5
Consumer Staples		4.8
Health Care		0.8
Short-Term Investments		1.9
Liabilities in Excess of Other Assets		(0.2	)
Net Assets		100.0	%

	PORTFOLIO OF INVESTMENTS
Voya Emerging Markets High Dividend Equity Fund	as of November 30, 2014 (Unaudited) (Continued)

Fair Value Measurements
The following is a summary of the fair valuations according to the inputs used as of November 30, 2014 in valuing the assets and liabilities:⁽¹⁾

	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, 2014
Asset Table
Investments, at fair value
Common Stock
Brazil	$	12,757,116	$	–		$	–	$	12,757,116
Chile		6,329,474		–			–		6,329,474
China		6,647,498		40,322,177			–		46,969,675
Czech Republic		–		4,536,411			–		4,536,411
Egypt		–		716,407			–		716,407
Greece		–		1,747,985			–		1,747,985
Hong Kong		–		8,392,409			–		8,392,409
Hungary		–		1,635,824			–		1,635,824
India		–		14,096,304			–		14,096,304
Indonesia		–		2,929,413			–		2,929,413
Malaysia		6,820,222		2,708,111			–		9,528,333
Mexico		5,121,097		–			–		5,121,097
Panama		1,516,604		–			–		1,516,604
Poland		–		8,775,925			–		8,775,925
Qatar		–		2,822,441			–		2,822,441
Russia		8,305,032		4,280,439			–		12,585,471
Singapore		–		2,373,967			–		2,373,967
South Africa		2,088,372		12,454,753			–		14,543,125
South Korea		–		27,347,848			–		27,347,848
Taiwan		–		21,829,346			–		21,829,346
Thailand		–		3,326,378			–		3,326,378
Turkey		–		6,537,045			–		6,537,045
Total Common Stock		49,585,415		166,833,183			–		216,418,598
Preferred Stock		12,910,431		6,548,222			–		19,458,653
Short-Term Investments		4,531,148		–			–		4,531,148
Total Investments, at fair value	$	67,026,994	$	173,381,405		$	–	$	240,408,399
Liabilities Table
Other Financial Instruments+
Written Options	$	–	$	(485,024	)	$	–	$	(485,024	)
Total Liabilities	$	–	$	(485,024	)	$	–	$	(485,024	)

(1)	For the period ended November 30, 2014, as a result of the fair value pricing procedures for international equities utilized by the Fund, certain securities have transferred in and out of Level 1 and Level 2 measurements during the year. The Fund’s policy is to recognize transfers between levels at the end of the reporting period. At November 30, 2014, securities valued at $5,269,056 and $14,814,984 were transferred from Level 1 to Level 2 and Level 2 to Level 1, respectively, within the fair value hierarchy.
+	Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, futures, centrally cleared swaps, OTC swaps and written options. Forward foreign currency contracts, futures and centrally cleared swaps are valued at the unrealized gain (loss) on the instrument. OTC swaps and written options are valued at the fair value of the instrument.
#	The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a portion of the Fund's investments are categorized as Level 2 investments.

At November 30, 2014, the following over-the-counter written options were outstanding for Voya Emerging Markets High Dividend Equity Fund:

Number of Contracts		Counterparty	Description	Exercise Price			Expiration Date	Premiums Received		Fair Value
Options on Indices
	580,200	BNP Paribas Bank	Call on iShares MSCI Emerging Markets ETF		41 .220	USD	12/05/14	$	444,433	$	(316,746	)
	576,700	BNP Paribas Bank	Call on iShares MSCI Emerging Markets ETF		41 .890	USD	12/19/14		428,315		(168,278	)
					Total Written OTC Options			$	872,748	$	(485,024	)

	PORTFOLIO OF INVESTMENTS
Voya Emerging Markets High Dividend Equity Fund	as of November 30, 2014 (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 November 30, 2014 was as follows:

Derivatives not accounted for as hedging instruments

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, 2014:

	BNP Paribas Bank
Liabilities:
Written options	$	485,024
Total Liabilities	$	485,024

Net OTC derivative instruments by counterparty, at fair value	$	(485,024	)

Total collateral pledged by the Fund/(Received from counterparty)	$	-

Net Exposure⁽¹⁾	$	(485,024	)

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

Item 2. Controls and Procedures.

(a)

Based on our evaluation conducted within 90 days of the filing date, hereof, the design and operation of the registrant’s disclosure controls and procedures are effective to ensure that material information relating to the registrant is made known to the certifying officers by others within the appropriate entities, particularly during the period in which Forms N-Q are being prepared, and the registrant’s disclosure controls and procedures allow timely preparation and review of the information for the registrant’s Form N-Q and the officer certifications of such Form N-Q.

(b)

There were no significant changes in the registrant’s internal controls over financial reporting that occurred during the registrant’s last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2 under the Act (17 CFR 270.30a-2) is attached hereto as EX-99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant): Voya Emerging Markets High Dividend Equity Fund

By	/s/ Shaun P. Mathews
	Shaun P. Mathews
	President and Chief Executive Officer

Date:	January 23, 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/ Shaun P. Mathews
	Shaun P. Mathews
	President and Chief Executive Officer

Date:	January 23, 2015

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

Date:	January 23, 2015