UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-07540 |
Global High Income Fund Inc. | ||
(Exact name of registrant as specified in charter) | ||
1285 Avenue of the Americas, New York, New York
10019-6028 | ||
(Address of principal executive offices) (Zip code) |
Mark F. Kemper, Esq.
UBS Global Asset
Management
1285 Avenue of the Americas
New York, NY 10019-6028
(Name
and address of agent for service)
Copy to:
Jack W. Murphy,
Esq.
Dechert LLP
1900 K Street,
N.W.
Washington, DC 20006
Registrants telephone number, including area code: 212-821 3000
Date of fiscal year end: October 31
Date of reporting period: April 30, 2013
Item 1. Reports to Stockholders.
Closed-end funds | Semiannual Report |
Global High Income Fund
Inc.
Semiannual
Report
April 30,
2013
Global High Income Fund
Inc.:
Managed distribution
policykey points to note
Global High Income Fund
Inc.
June 14, 2013
Dear
shareholder,
We present you with the
semiannual report for Global High Income Fund Inc. (the Fund) for the six
months ended April 30, 2013.
Performance
During the six months ended April 30, 2013, the Fund
returned 4.87% on a net asset value (NAV) basis, and 5.34% on a market price
basis. In comparison, the Funds benchmark, the Global High Income Fund Index
(the Index), returned 4.99%. Over the same period, the median for the Funds
Lipper Emerging Markets Debt Funds peer group returned 4.52% on a NAV basis and
5.38% on a market price basis. (For more performance information, including a
description of the Index, please refer to Performance at a glance on page
4.)
The Fund did not use structural leverage during the reporting period. This means the Fund did not have preferred stock outstanding or borrow from banks for investment purposes, as some of its peers may have done. Leverage magnifies returns on both the upside and on the downside, and creates a wider range of returns within the Funds peer group.
The Fund traded at a discount to its NAV during the reporting period. On the last trading day of the preceding fiscal year, October 31, 2012, the Fund traded at a discount of 5.3%. At the close of the current fiscal period, April 30, 2013, the Fund traded at a discount of 5.0%. As of the same dates, the Lipper peer group medians reported discounts of 5.1% and 3.4%, respectively.
Global High Income
Fund
Inc.
Investment
goals:
Primarily, high level
of
current income; secondarily,
capital appreciation
Portfolio
management:
Portfolio management
team,
including Uwe Schillhorn
UBS Global Asset
Management (Americas)
Inc.
Commencement:
October 8, 1993
NYSE symbol:
GHI
Distribution
payments:
Monthly
A fund trades at a premium when the market price at which its shares trade is more than its NAV per share. Alternatively, a fund trades at a discount when the market price at which its shares trade is less than its NAV per share. The market price is the price the market is willing to pay for shares of a fund at a given time, and may be influenced by a range of factors, including supply and demand and market conditions. NAV per share is determined by dividing the value of the Funds securities, cash and other assets, less all liabilities, by the total number of common shares outstanding.
Q. |
How did emerging markets debt perform over the reporting period? |
A. | While the emerging markets debt asset class experienced periods of volatility during the reporting period, it ultimately generated positive results. The asset class rallied during the first two months of the period, driven by an improving economic backdrop in the US and indications that Chinas economy was stabilizing. Investor sentiment was also lifted by further monetary policy accommodation by the Federal Reserve Board (Fed) and European Central Bank (ECB). After a strong start, the asset class weakened over much of the next three months. This turnaround was triggered by a number of factors, including signs of moderating global growth, fears of contagion from Europe, rising US Treasury yields and falling commodity prices. However, the reporting period ended on a positive note, as investor risk appetite returned and US Treasury yields declined. |
1 |
Global High Income Fund Inc.
During the six months ended
April 30, 2013, US dollar-denominated emerging markets debt, as measured by the
JP Morgan Emerging Markets Bond Index Global (EMBI Global), posted a return of
2.97%. Local market investments (emerging markets debt denominated in the
currency of the issuer) returned 7.02%, as measured by the JP Morgan Government
Bond Index-Emerging Markets Global Diversified (GBI-EM Global Diversified). A
portion of local markets relative outperformance was driven by weaker
performance of US dollar-denominated debt due to increasing industry yields and
strong investor demand for local debt, as investors looked to generate
incremental yield.
Q. | The Fund modestly underperformed its benchmark on a NAV basis during the reporting period. What factors negatively impacted its performance? |
A. | The following strategies
detracted from performance during the reporting period.
|
Q. | What factors positively impacted the Funds performance during the period? |
A. | The following strategies
were positive contributors to performance during the reporting period.
|
Q. | Were there any significant adjustments to the Funds positioning during the reporting period? |
A. | Several adjustments were made to the portfolio during the reporting period. We reduced the Funds allocation to US dollar-denominated debt by paring our exposure to Argentina, even though the Fund maintains an overweight position. Conversely, we added to the Funds allocation to Venezuelan US dollar-denominated debt, as we found it to be attractively valued. From a currency perspective, we reduced our exposure to the Taiwan dollar and South Korean won. Elsewhere, we actively participated in the new issuance market, as it has become more active in recent weeks. |
2 |
Global High Income Fund Inc.
Q. | What derivative instruments did the Fund utilize over the reporting period and what impact did they have on performance? |
A. |
Currency forwards and currency options to manage the Funds overall currency exposure were among the most commonly utilized instruments. (A currency forward is an agreement between two parties to exchange a certain amount in currencies at a certain rate at a future date.) During this period, the usage of these derivatives was rewarded and added to performance. The Fund also used credit default swaps (a type of credit derivative) and structured notes to adjust the Funds exposure to the debt of certain emerging markets countries, such as Argentina. Whereas credit default swaps were generally used to adjust the Funds US dollar-denominated debt exposure, structured notes were employed almost exclusively to gain access to various local markets. The Funds overall management of its US dollar-denominated assets, including derivatives, modestly contributed to performance. |
Q. | What is your outlook for the emerging markets debt asset class? | |
A. | Since the end of the reporting period, investor risk aversion increased and volatility in emerging markets has become more elevated. The trigger for the bond sell-off was hints from the Fed that it might start tapering its quantitative easing program as early as the summer of 2013. While the overall message from the Fed was presumably a positive one in noting the continued improvement in US economic growth projections, global markets did not respond kindly to the notion that the end of the extreme monetary policy accommodation might arrive sooner than previously anticipated. Many emerging market countries are experiencing growth well above the levels of major developed markets, although emerging market countries are not immune to global developments. Growth rates in emerging markets should be lower than were expected at the end of 2012, based on lower exports into developed markets. However, advantages in terms of growth and relatively low fiscal deficits are favorable for debt dynamics in emerging markets on a longer-term horizon. While volatility may stay elevated in the near term due to market uncertainty and investor risk aversion, we continue to have a positive long-term outlook for emerging markets investments. Solid fundamental data, stable reserves, a stronger fiscal situation and lower indebtedness are signs of such strengths, especially for sovereigns, quasi-sovereigns and in currencies. |
We thank you for your continued support and welcome any comments or questions you may have. For additional information regarding your fund, please contact your financial advisor, or visit us at www.ubs.com/globalam-us.
Sincerely,
Mark E. Carver | Uwe Schillhorn, CFA |
President | Portfolio Management Team Member |
Global High Income Fund Inc. | Global High Income Fund Inc. |
Managing Director | Managing Director |
UBS Global Asset Management | UBS Global Asset Management |
(Americas) Inc. | (Americas) Inc. |
This letter is intended to assist shareholders in understanding how the Fund performed during the six months ended April 30, 2013. The views and opinions in the letter were current as of June 14, 2013.They are not guarantees of future performance or investment results and should not be taken as investment advice. Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Funds future investment intent. We encourage you to consult your financial advisor regarding your personal investment program.
3 |
Global High Income Fund Inc.
Performance at a glance
(unaudited)
Average annual total
returns for periods ended 04/30/13
Net asset value returns | 6 months | 1 year | 5 years | 10 years | ||||||||
Global High Income Fund Inc. | 4.87 | % | 11.10 | % | 8.11 | % | 10.27 | % | ||||
Lipper Emerging Markets Debt Funds median | 4.52 | 11.11 | 9.47 | 10.71 | ||||||||
Market price returns | ||||||||||||
Global High Income Fund Inc. | 5.34 | % | 6.83 | % | 5.60 | % | 9.16 | % | ||||
Lipper Emerging Markets Debt Funds median | 5.38 | 12.67 | 12.11 | 10.98 | ||||||||
Index returns | ||||||||||||
Global High Income Fund Index1 | 4.99 | % | 11.01 | % | 9.61 | % | 10.57 | % | ||||
J.P. Morgan Emerging Markets Bond | ||||||||||||
Index Global (EMBI Global)2 | 2.97 | 11.60 | 10.21 | 10.29 |
Past performance does not predict future performance. The return and value of an investment will fluctuate so that an investors shares, when sold, may be worth more or less than their original cost. The Funds net asset value (NAV) returns assume, for illustration only, that dividends and other distributions, if any, were reinvested at the NAV on the payable dates. The Funds market price returns assume that all dividends and other distributions, if any, were reinvested at prices obtained under the Funds Dividend Reinvestment Plan. Returns for the period of less than one year have not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund dividends and other distributions, if any, or on the sale of Fund shares.
1 | The Global High Income Fund Index is an unmanaged index compiled by UBS Global Asset Management (Americas) Inc. constructed as follows: from the Funds inception until 12/31/93: 100% J.P. Morgan Emerging Markets Bond Index (EMBI); from 01/01/94 to 11/05/06: 100% J.P. Morgan Emerging Markets Bond Index Global (EMBI Global); from 11/06/06 to 03/31/08: 70% J.P. Morgan Emerging Markets Bond Index Global (EMBI Global) and 30% J.P. Morgan Government Bond Index-Emerging Markets Diversified (GBI-EM Diversified); from 04/01/08 to 05/31/08: 50% J.P. Morgan Emerging Markets Bond Index Global (EMBI Global) and 50% J.P. Morgan Government Bond Index-Emerging Markets Diversified (GBI-EM Diversified); from 06/01/08 to Present: 50% J.P. Morgan Emerging Markets Bond Index Global (EMBI Global) and 50% J.P. Morgan Government Bond Index-Emerging Markets Global Diversified (GBI-EM Global Diversified). Investors should note that indices do not reflect the deduction of fees and expenses. |
2 | The J.P. Morgan Emerging Markets Bond Index Global (EMBI Global) is an unmanaged index which is designed to track total returns for US dollar-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans and Eurobonds. Investors should note that indices do not reflect the deduction of fees and expenses. |
Lipper peer group data calculated by Lipper Inc.; used with permission. The Lipper median is the return of the fund that places in the middle of the peer group. Lipper classifies the Fund in its Emerging Market Debt Funds category, which includes both leveraged and non-leveraged closed-end funds that seek either current income or total return by investing primarily in emerging market debt securities.
Performance information reflects the deduction of the Funds fees and expenses, as indicated in the Statement of operations included in its shareholder reports, such as investment advisory and administration fees, custody fees, exchange listing fees, etc. It does not reflect any transaction charges that a shareholder may incur when (s)he buys or sells shares (e.g., a shareholders brokerage commissions).
Further information regarding the Fund, including a discussion of principal objectives, principal investment strategies and principal risks, may be found in the fund overview located at http://www.ubs.com/closedendfundsinfo. You may also request copies of the fund overview by calling the Closed-End Funds Desk at 888-793 8637.
4 |
Global High Income Fund Inc.
Portfolio statistics
(unaudited)
Characteristics1 | 04/30/13 | 10/31/12 | 04/30/12 | ||||||
Net asset value | $13.62 | $13.45 | $13.16 | ||||||
Market price | $12.94 | $12.74 | $13.04 | ||||||
12-month dividends/distributions | $0.9457 | $0.9889 | $1.0600 | ||||||
Monthly dividend/distribution at period-end | $0.0785 | $0.0792 | $0.0867 | ||||||
Net assets (mm) | $294.0 | $290.4 | $284.2 | ||||||
Weighted average maturity (yrs.) | 10.7 | 11.2 | 11.5 | ||||||
Modified duration (yrs.)2 | 6.9 | 7.2 | 7.0 | ||||||
Currency exposure3 | 04/30/13 | 10/31/12 | 04/30/12 | ||||||
US dollar denominated | 30.0 | % | 36.4 | % | 44.9 | % | |||
Foreign denominated | 70.0 | 63.6 | 55.1 | ||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
Top ten
countries (bond holdings)4 |
04/30/13 | 10/31/12 | 04/30/12 | ||||||||||
Brazil | 13.4 | % | Brazil | 12.1 | % | Brazil | 11.8 | % | |||||
Russia | 7.3 | Russia | 7.7 | South Africa | 6.9 | ||||||||
Turkey | 6.3 | Indonesia | 7.2 | Turkey | 5.5 | ||||||||
Indonesia | 5.9 | Turkey | 6.1 | Indonesia | 5.5 | ||||||||
Mexico | 5.8 | Mexico | 5.5 | Russia | 5.4 | ||||||||
Venezuela | 5.3 | Venezuela | 5.3 | Mexico | 5.4 | ||||||||
India | 4.6 | India | 5.0 | Venezuela | 5.3 | ||||||||
South Africa | 4.2 | South Africa | 4.9 | Malaysia | 4.7 | ||||||||
Malaysia | 4.0 | Peru | 3.4 | Peru | 3.2 | ||||||||
Sri Lanka | 3.5 | Poland | 2.8 | China | 3.0 | ||||||||
60.3 | % | 60.0 | % | 56.7 | % |
Credit quality5 | 04/30/13 | 10/31/12 | 04/30/12 | ||||||
AA | 0.8 | % | 2.6 | % | 3.4 | % | |||
A | 9.5 | 7.9 | 12.2 | ||||||
BBB | 18.6 | 19.6 | 19.7 | ||||||
BB | 11.3 | 13.8 | 12.7 | ||||||
B | 11.1 | 10.4 | 10.3 | ||||||
Non-rated | 46.2 | 39.7 | 37.0 | ||||||
Cash equivalents | 0.3 | 3.8 | 4.6 | ||||||
Other assets less liabilities | 2.2 | 2.2 | 0.1 | ||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
1 | Prices and other characteristics will vary over time. |
2 | Duration is a measure of price sensitivity of a fixed income investment or portfolio (expressed as % change in price) to a 1 percentage point (i.e., 100 basis points) change in interest rates, accounting for optionality in bonds such as prepayment risk and call/put features. |
3 | Exposure represents a percentage of market value as of dates indicated. |
4 | Weightings represent percentage of net assets as of the dates indicated. The Funds portfolio is actively managed and its composition will vary over time. |
5 | Weightings represent percentages of net assets as of the dates indicated. The Funds portfolio is actively managed and its composition will vary over time. Credit quality ratings shown are based on those assigned by Standard & Poors, a division of The McGraw-Hill Companies, Inc. (S&P), to individual portfolio holdings. S&P is an independent ratings agency. While S&P may provide a credit rating for a bond issuer (e.g., a specific company or country); certain issues, such as some sovereign debt, may not be covered or rated and therefore are reflected as non-rated for the purposes of this table. |
5 |
Global High Income Fund Inc.
Industry diversification (unaudited) As a percentage of net assets As of April 30, 2013 |
||
Bonds | ||
Corporate bonds | ||
Building products | 0.07 | % |
Capital markets | 0.15 | |
Commercial banks | 7.19 | |
Construction materials | 0.14 | |
Distributors | 0.11 | |
Diversified financial services | 1.34 | |
Electric utilities | 2.50 | |
Food products | 0.08 | |
Industrial conglomerates | 0.12 | |
Machinery | 0.39 | |
Metals & mining | 0.84 | |
Oil, gas & consumable fuels | 4.75 | |
Paper & forest products | 0.19 | |
Road & rail | 0.93 | |
Specialty retail | 0.23 | |
Total corporate bonds | 19.03 | |
Non-US government obligations | 70.66 | |
Convertible bond | 1.20 | |
Structured notes | 6.43 | |
Total bonds | 97.32 | |
Short-term investment | 0.25 | |
Options purchased | 0.25 | |
Total investments | 97.82 | |
Cash and other assets, less liabilities | 2.18 | |
Net assets | 100.00 | % |
6 |
Global High Income Fund
Inc.
Portfolio of investmentsApril 30,
2013
(unaudited)
Face | |||||
amount | Value | ||||
Bonds97.32% | |||||
Corporate bonds19.03% | |||||
Argentina0.10% | |||||
WPE International | |||||
Cooperatief UA, | |||||
10.375%, due 09/30/201 | $ | 300,000 | $ | 288,000 | |
Brazil2.72% | |||||
Banco do Brasil SA, | |||||
5.875%, due 01/26/222 | 1,900,000 | 2,073,375 | |||
Banco do Nordeste do Brasil SA, | |||||
4.375%, due 05/03/191 | 300,000 | 308,850 | |||
Braskem America Finance Co., | |||||
7.125%, due 07/22/411 | 300,000 | 318,750 | |||
Caixa Economica Federal, | |||||
2.375%, due 11/06/172 | 200,000 | 194,500 | |||
Centrais Eletricas Brasileiras SA, | |||||
5.750%, due 10/27/211 | 2,200,000 | 2,392,500 | |||
5.750%, due 10/27/212 | 500,000 | 543,750 | |||
Odebrecht Finance Ltd., | |||||
7.125%, due 06/26/421 | 300,000 | 343,500 | |||
State of Minas Gerais, | |||||
5.333%, due 02/15/282 | 1,600,000 | 1,811,200 | |||
7,986,425 | |||||
China0.60% | |||||
China Automation Group Ltd., | |||||
7.750%, due 04/20/16 | 1,150,000 | 1,138,500 | |||
China Liansu Group | |||||
Holdings Ltd., | |||||
7.875%, due 05/13/161 | 200,000 | 213,000 | |||
China Shanshui Cement | |||||
Group Ltd., | |||||
10.500%, due 04/27/171 | 360,000 | 407,700 | |||
1,759,200 | |||||
Croatia0.08% | |||||
Agrokor DD, | |||||
8.875%, due 02/01/202 | 200,000 | 223,400 | |||
Czech Republic0.17% | |||||
EP Energy AS, | |||||
5.875%, due 11/01/192 | EUR | 350,000 | 505,463 | ||
Indonesia0.74% | |||||
Majapahit Holding BV, | |||||
7.250%, due 06/28/172 | $ | 100,000 | 116,870 | ||
Pertamina Persero PT, | |||||
6.000%, due 05/03/422 | 1,700,000 | 1,836,000 | |||
6.500%, due 05/27/411 | 200,000 | 226,750 | |||
2,179,620 | |||||
Kazakhstan0.90% | |||||
Alliance Bank JSC, | |||||
10.500%, due 03/25/171 | 350,000 | 337,750 | |||
Development Bank of | |||||
Kazakhstan JSC, | |||||
5.500%, due 12/20/152 | 264,000 | 283,140 | |||
Kazakhstan Temir Zholy | |||||
Finance BV, | |||||
6.950%, due 07/10/421 | 350,000 | 418,250 | |||
6.950%, due 07/10/422 | 750,000 | 896,250 | |||
KazMunayGas National Co., | |||||
5.750%, due 04/30/432 | 700,000 | 712,492 | |||
2,647,882 | |||||
Malaysia1.52% | |||||
Malayan Banking Bhd, | |||||
3.250%, due 09/20/221,3 | 4,400,000 | 4,469,960 | |||
Mexico1.25% | |||||
Comision Federal de Electricidad, | |||||
5.750%, due 02/14/422 | 500,000 | 558,750 | |||
Grupo Papelero Scribe SA, | |||||
8.875%, due 04/07/201 | 550,000 | 544,500 | |||
Pemex Project Funding | |||||
Master Trust, | |||||
6.625%, due 06/15/35 | 2,050,000 | 2,578,445 | |||
3,681,695 | |||||
Mongolia0.13% | |||||
Mongolian Mining Corp., | |||||
8.875%, due 03/29/171 | 360,000 | 368,100 | |||
Peru0.49% | |||||
Banco de Credito del Peru, | |||||
5.375%, due 09/16/201 | 900,000 | 992,250 | |||
El Fondo MIVIVIENDA SA, | |||||
3.500%, due 01/31/232 | 450,000 | 445,500 | |||
1,437,750 | |||||
Philippines1.27% | |||||
Power Sector Assets & Liabilities | |||||
Management Corp. | |||||
9.625%, due 05/15/28 | 2,360,000 | 3,728,800 | |||
Russia3.15% | |||||
RSHB Capital SA for OJSC Russian | |||||
Agricultural Bank, | |||||
7.125%, due 01/14/142 | 300,000 | 311,250 | |||
9.000%, due 06/11/142 | 550,000 | 593,313 | |||
SB Capital SA, | |||||
5.180%, due 06/28/191 | 2,550,000 | 2,808,187 | |||
5.717%, due 06/16/211 | 330,000 | 365,310 | |||
VEB Finance Ltd., | |||||
6.025%, due 07/05/222 | 200,000 | 226,750 | |||
6.800%, due 11/22/251 | 900,000 | 1,077,750 | |||
6.800%, due 11/22/252 | 1,000,000 | 1,197,500 | |||
6.902%, due 07/09/202 | 200,000 | 237,250 | |||
Vnesheconombank, Series 6 | |||||
7.900%, due 10/13/203 | RUB | 75,000,000 | 2,437,830 | ||
9,255,140 |
7 |
Global High Income Fund
Inc.
Portfolio of investmentsApril 30,
2013
(unaudited)
Face | |||||
amount | Value | ||||
Bonds(continued) | |||||
Corporate bonds(concluded) | |||||
Singapore1.16% | |||||
DBS Bank Ltd., | |||||
3.625%, due 09/21/221,3 | $ | 200,000 | $ | 210,280 | |
Oversea-Chinese Banking | |||||
Corp. Ltd., | |||||
3.150%, due 03/11/231,3 | 1,500,000 | 1,541,298 | |||
3.750%, due 11/15/223 | 700,000 | 740,600 | |||
United Overseas Bank Ltd., | |||||
2.875%, due 10/17/221,3 | 900,000 | 917,834 | |||
3,410,012 | |||||
South Africa0.71% | |||||
Edcon Pty Ltd., | |||||
9.500%, due 03/01/181 | 300,000 | 309,750 | |||
9.500%, due 03/01/182 | 350,000 | 361,375 | |||
Transnet Ltd., Series 2 | |||||
10.000%, due 03/30/29 | ZAR | 12,000,000 | 1,429,958 | ||
2,101,083 | |||||
Turkey0.70% | |||||
Export Credit Bank of Turkey, | |||||
5.375%, due 11/04/162 | $ | 700,000 | 759,500 | ||
5.875%, due 04/24/192 | 400,000 | 453,500 | |||
Turkiye Halk Bankasi AS, | |||||
4.875%, due 07/19/172 | 800,000 | 855,000 | |||
2,068,000 | |||||
Ukraine1.00% | |||||
Biz Finance PLC, | |||||
11.000%, due 02/03/144 | UAH | 15,000,000 | 1,685,185 | ||
NAK Naftogaz Ukraine, | |||||
9.500%, due 09/30/14 | $ | 1,220,000 | 1,259,650 | ||
2,944,835 | |||||
United Arab Emirates0.65% | |||||
IPIC GMTN Ltd., | |||||
5.500%, due 03/01/221 | 1,620,000 | 1,909,170 | |||
Venezuela1.69% | |||||
Petroleos de Venezuela SA, | |||||
5.250%, due 04/12/171 | 530,000 | 458,450 | |||
5.375%, due 04/12/271 | 1,150,000 | 802,125 | |||
8.500%, due 11/02/171 | 780,000 | 754,650 | |||
8.500%, due 11/02/172 | 1,500,000 | 1,451,250 | |||
9.000%, due 11/17/211 | 120,000 | 113,400 | |||
9.750%, due 05/17/351 | 1,500,000 | 1,402,500 | |||
4,982,375 | |||||
Total corporate bonds | |||||
(cost $52,713,762) | 55,946,910 | ||||
Non-US government obligations70.66% | |||||
Albania0.85% | |||||
Republic of Albania, | |||||
7.500%, due 11/04/15 | EUR | 1,800,000 | 2,485,100 | ||
Argentina2.20% | |||||
Republic of Argentina, | |||||
6.055%, due 12/15/355 | 2,200,000 | 83,024 | |||
6.266%, due 12/15/355 | $ | 15,601,737 | 513,957 | ||
6.266%, due 12/15/355 | 14,290,000 | 466,649 | |||
Series VII, 7.000%, | |||||
due 09/12/13 | 675,000 | 677,887 | |||
7.000%, due 10/03/15 | 1,000,000 | 866,222 | |||
Series X, 7.000%, | |||||
due 04/17/17 | 1,150,000 | 932,969 | |||
7.820%, due 12/31/33 | EUR | 362,896 | 270,023 | ||
8.280%, due 12/31/33 | $ | 1,434,289 | 813,959 | ||
Series NY, 8.280%, | |||||
due 12/31/33 | 355,550 | 209,774 | |||
Series 1, 8.750%, | |||||
due 06/02/17 | 2,072,897 | 1,627,224 | |||
6,461,688 | |||||
Belarus1.67% | |||||
Republic of Belarus, | |||||
8.750%, due 08/03/151 | 4,550,000 | 4,737,687 | |||
8.950%, due 01/26/181 | 150,000 | 162,188 | |||
4,899,875 | |||||
Brazil10.65% | |||||
Federal Republic of Brazil, | |||||
5.625%, due 01/07/41 | 750,000 | 943,500 | |||
6.000%, due 08/15/506 | BRL | 1,340,000 | 1,958,933 | ||
Letras do Tesouro Nacional, | |||||
7.593%, due 04/01/147 | 12,650,000 | 5,866,927 | |||
Notas do Tesouro Nacional, | |||||
Series B, | |||||
6.000%, due 08/15/166 | 4,100,000 | 5,080,446 | |||
6.000%, due 05/15/456 | 9,250,000 | 13,507,500 | |||
Series F, | |||||
10.000%, due 01/01/17 | 1,280,000 | 658,490 | |||
10.000%, due 01/01/21 | 6,428,000 | 3,299,222 | |||
31,315,018 | |||||
Chile1.12% | |||||
Bonos de la Tesoreria | |||||
de la Republica, | |||||
3.000%, due 07/01/176 | CLP | 1,307,929,410 | 2,836,781 | ||
Bonos del Banco Central de | |||||
Chile en Pesos, | |||||
6.000%, due 02/01/21 | 140,000,000 | 313,034 | |||
6.000%, due 03/01/22 | 70,000,000 | 157,550 | |||
3,307,365 | |||||
China0.19% | |||||
China Government Bond, | |||||
2.480%, due 12/01/20 | CNY | 3,500,000 | 562,044 |
8 |
Global High Income Fund
Inc.
Portfolio of investmentsApril 30,
2013
(unaudited)
Face | |||||
amount | Value | ||||
Bonds(continued) | |||||
Non-US government obligations(continued) | |||||
Colombia2.24% | |||||
Republic of Colombia, | |||||
4.375%, due 07/12/21 | $ | 1,000,000 | $ | 1,145,000 | |
4.375%, due 03/21/23 | COP | 395,000,000 | 219,184 | ||
6.125%, due 01/18/41 | $ | 150,000 | 201,750 | ||
7.375%, due 09/18/37 | 575,000 | 871,125 | |||
7.750%, due 04/14/21 | COP | 1,530,000,000 | 1,045,929 | ||
8.125%, due 05/21/24 | $ | 250,000 | 368,750 | ||
9.850%, due 06/28/27 | COP | 3,200,000,000 | 2,730,141 | ||
6,581,879 | |||||
Croatia0.19% | |||||
Republic of Croatia, | |||||
6.250%, due 04/27/172 | $ | 500,000 | 548,750 | ||
Dominican Republic0.21% | |||||
Republic of Dominica, | |||||
7.500%, due 05/06/212 | 550,000 | 627,000 | |||
El Salvador0.39% | |||||
Republic of El Salvador, | |||||
7.750%, due 01/24/231 | 320,000 | 388,800 | |||
8.250%, due 04/10/321 | 615,000 | 767,213 | |||
1,156,013 | |||||
Hungary2.32% | |||||
Hungarian Development Bank, | |||||
5.875%, due 05/31/16 | EUR | 1,200,000 | 1,641,578 | ||
Hungary Government Bond, | |||||
5.375%, due 02/21/23 | $ | 550,000 | 566,500 | ||
6.000%, due 11/24/23 | HUF | 200,000,000 | 916,663 | ||
6.500%, due 06/24/19 | 90,000,000 | 425,146 | |||
6.750%, due 02/24/17 | 70,000,000 | 328,158 | |||
7.500%, due 11/12/20 | 380,000,000 | 1,901,433 | |||
7.625%, due 03/29/41 | $ | 900,000 | 1,055,250 | ||
6,834,728 | |||||
Indonesia5.13% | |||||
Indonesia Treasury Bond, | |||||
9.500%, due 07/15/23 | IDR | 29,400,000,000 | 3,900,849 | ||
11.750%, due 08/15/23 | 4,600,000,000 | 688,167 | |||
12.000%, due 09/15/26 | 12,215,000,000 | 1,919,096 | |||
Republic of Indonesia, | |||||
4.875%, due 05/05/212 | $ | 1,080,000 | 1,223,100 | ||
5.875%, due 03/13/201 | 740,000 | 880,600 | |||
6.625%, due 02/17/371 | 920,000 | 1,200,600 | |||
7.750%, due 01/17/381 | 3,135,000 | 4,639,799 | |||
8.500%, due 10/12/351 | 400,000 | 622,000 | |||
15,074,211 | |||||
Latvia0.10% | |||||
Republic of Latvia, | |||||
5.250%, due 02/22/171 | 250,000 | 281,453 | |||
Lithuania0.42% | |||||
Republic of Lithuania, | |||||
6.125%, due 03/09/211 | 450,000 | 552,267 | |||
6.125%, due 03/09/212 | 250,000 | 306,815 | |||
6.625%, due 02/01/222 | 300,000 | 382,374 | |||
1,241,456 | |||||
Malaysia2.43% | |||||
Malaysia Government Bond, | |||||
3.197%, due 10/15/15 | MYR | 10,300,000 | 3,398,577 | ||
3.580%, due 09/28/18 | 2,600,000 | 867,592 | |||
3.892%, due 03/15/27 | 1,400,000 | 474,528 | |||
4.262%, due 09/15/16 | 5,100,000 | 1,740,789 | |||
4.392%, due 04/15/26 | 1,900,000 | 674,601 | |||
7,156,087 | |||||
Mexico4.52% | |||||
Mexican Bonos, | |||||
Series M, | |||||
6.500%, due 06/10/21 | MXN | 10,700,000 | 1,004,090 | ||
10.000%, due 11/20/36 | 2,000,000 | 268,795 | |||
Mexican Udibonos, | |||||
2.500%, due 12/10/206 | 15,905,901 | 1,454,421 | |||
4.000%, due 11/15/406 | 43,741,227 | 5,141,016 | |||
United Mexican States, | |||||
4.750%, due 03/08/44 | $ | 1,100,000 | 1,215,500 | ||
6.050%, due 01/11/40 | 2,030,000 | 2,669,450 | |||
Series A, | |||||
6.750%, due 09/27/34 | 450,000 | 630,000 | |||
7.500%, due 04/08/33 | 600,000 | 895,500 | |||
13,278,772 | |||||
Mongolia1.30% | |||||
Development Bank of | |||||
Mongolia LLC, | |||||
5.750%, due 03/21/171 | 1,500,000 | 1,545,000 | |||
Mongolia Government | |||||
International Bond, | |||||
4.125%, due 01/05/182 | 300,000 | 291,750 | |||
5.125%, due 12/05/222 | 2,100,000 | 1,984,500 | |||
3,821,250 | |||||
Montenegro0.72% | |||||
Republic of Montenegro, | |||||
7.875%, due 09/14/15 | EUR | 1,550,000 | 2,114,799 | ||
Nigeria 2.66% | |||||
Nigeria Treasury Bills, | |||||
10.995%, due 03/06/147 | NGN | 100,000,000 | 572,420 | ||
11.053%, due 01/09/147 | 33,000,000 | 193,659 | |||
11.054%, due 01/23/147 | 33,000,000 | 192,863 | |||
11.275%, due 11/21/137 | 180,000,000 | 1,068,847 | |||
11.450%, due 09/26/137 | 150,000,000 | 902,504 | |||
11.456%, due 04/10/147 | 225,000,000 | 1,275,467 | |||
12.802%, due 09/05/137 | 135,000,000 | 818,494 | |||
14.864%, due 11/07/137 | 144,500,000 | 859,089 | |||
Republic of Nigeria, | |||||
15.100%, due 04/27/17 | 280,000,000 | 1,936,864 | |||
7,820,207 |
9 |
Global High Income Fund
Inc.
Portfolio of investmentsApril 30,
2013
(unaudited)
Face | |||||
amount | Value | ||||
Bonds(continued) | |||||
Non-US government obligations(continued) | |||||
Pakistan0.29% | |||||
Islamic Republic of Pakistan, | |||||
6.875%, due 06/01/171 | $ | 250,000 | $ | 231,250 | |
7.875%, due 03/31/361 | 830,000 | 610,050 | |||
841,300 | |||||
Peru2.66% | |||||
Peru Government Bond, | |||||
Series 7, 8.200%, | |||||
due 08/12/26 | PEN | 1,442,000 | 759,427 | ||
Republic of Peru, | |||||
5.625%, due 11/18/50 | $ | 1,750,000 | 2,231,250 | ||
6.900%, due 08/12/371 | PEN | 1,750,000 | 835,292 | ||
6.950%, due 08/12/312 | 1,750,000 | 825,707 | |||
7.840%, due 08/12/201 | 6,700,000 | 3,171,097 | |||
7,822,773 | |||||
Philippines1.11% | |||||
Republic of the Philippines, | |||||
9.125%, due 09/04/16 | PHP | 110,000,000 | 3,257,970 | ||
Poland3.40% | |||||
Government of Poland, | |||||
4.000%, due 10/25/23 | PLN | 5,200,000 | 1,748,747 | ||
5.000%, due 03/23/22 | $ | 650,000 | 756,672 | ||
5.500%, due 10/25/19 | PLN | 6,000,000 | 2,178,110 | ||
5.750%, due 09/23/22 | 14,000,000 | 5,307,693 | |||
9,991,222 | |||||
Romania0.47% | |||||
Romanian Government | |||||
International Bond, | |||||
4.375%, due 08/22/232 | $ | 200,000 | 207,000 | ||
5.750%, due 01/27/16 | RON | 2,200,000 | 684,117 | ||
6.750%, due 02/07/221 | $ | 100,000 | 122,750 | ||
6.750%, due 02/07/222 | 300,000 | 368,250 | |||
1,382,117 | |||||
Russia4.16% | |||||
Russian Federation, | |||||
5.625%, due 04/04/421 | 200,000 | 238,250 | |||
5.625%, due 04/04/422 | 1,000,000 | 1,191,250 | |||
7.000%, due 01/25/23 | RUB | 25,100,000 | 840,178 | ||
7.500%, due 03/31/301,8 | $ | 34,270 | 43,129 | ||
7.500%, due 03/31/302,8 | 1,306,424 | 1,640,890 | |||
7.600%, due 04/14/21 | RUB | 155,000,000 | 5,383,367 | ||
8.150%, due 02/03/27 | 79,700,000 | 2,894,412 | |||
12,231,476 | |||||
South Africa3.53% | |||||
Republic of South Africa, | |||||
4.665%, due 01/17/24 | $ | 1,810,000 | 2,018,150 | ||
5.500%, due 03/09/20 | 100,000 | 117,500 | |||
6.750%, due 03/31/21 | ZAR | 18,000,000 | 2,097,863 | ||
7.000%, due 02/28/31 | 30,000,000 | 3,228,147 | |||
7.750%, due 02/28/23 | 23,650,000 | 2,917,407 | |||
10,379,067 | |||||
Sri Lanka1.97% | |||||
Republic of Sri Lanka, | |||||
5.875%, due 07/25/221 | 400,000 | 423,000 | |||
6.250%, due 10/04/201 | 1,700,000 | 1,853,000 | |||
6.250%, due 10/04/202 | 550,000 | 599,500 | |||
6.250%, due 07/27/211 | 1,100,000 | 1,190,750 | |||
6.250%, due 07/27/212 | 1,000,000 | 1,082,500 | |||
7.400%, due 01/22/151 | 600,000 | 639,720 | |||
5,788,470 | |||||
Thailand3.42% | |||||
Thailand Government Bond, | |||||
1.200%, due 07/14/211,6 | THB | 156,329,160 | 5,448,367 | ||
3.580%, due 12/17/27 | 58,000,000 | 1,975,139 | |||
3.775%, due 06/25/32 | 78,000,000 | 2,635,053 | |||
10,058,559 | |||||
Turkey5.55% | |||||
Government of Turkey, | |||||
10.500%, due 01/15/20 | TRY | 12,100,000 | 8,389,655 | ||
Republic of Turkey, | |||||
5.125%, due 03/25/22 | $ | 1,450,000 | 1,654,812 | ||
5.625%, due 03/30/21 | 1,000,000 | 1,175,000 | |||
6.000%, due 01/14/41 | 900,000 | 1,082,250 | |||
6.250%, due 09/26/22 | 1,300,000 | 1,603,875 | |||
6.750%, due 05/30/40 | 750,000 | 981,563 | |||
6.875%, due 03/17/36 | 250,000 | 328,125 | |||
7.250%, due 03/05/38 | 250,000 | 344,063 | |||
7.500%, due 11/07/19 | 200,000 | 255,500 | |||
8.000%, due 02/14/34 | 350,000 | 510,125 | |||
16,324,968 | |||||
Ukraine0.81% | |||||
Financing of Infrastructural Projects | |||||
State Enterprise, | |||||
8.375%, due 11/03/172 | 1,150,000 | 1,170,125 | |||
Government of Ukraine, | |||||
7.500%, due 04/17/232 | 400,000 | 385,500 | |||
7.800%, due 11/28/221 | 250,000 | 248,438 | |||
9.250%, due 07/24/172 | 550,000 | 587,125 | |||
2,391,188 | |||||
Uruguay0.07% | |||||
Oriental Republic of Uruguay, | |||||
6.875%, due 09/28/25 | 150,000 | 204,000 | |||
Venezuela3.61% | |||||
Republic of Venezuela, | |||||
6.000%, due 12/09/201 | 500,000 | 416,250 | |||
7.000%, due 03/31/381 | 3,250,000 | 2,583,750 | |||
7.650%, due 04/21/25 | 2,850,000 | 2,472,375 | |||
7.750%, due 10/13/191 | 150,000 | 140,250 | |||
8.250%, due 10/13/241 | 2,000,000 | 1,800,000 | |||
9.250%, due 09/15/27 | 500,000 | 491,250 | |||
9.250%, due 05/07/281 | 280,000 | 268,100 | |||
9.375%, due 01/13/34 | 2,550,000 | 2,441,625 | |||
10,613,600 |
10 |
Global High Income Fund
Inc.
Portfolio of investmentsApril 30,
2013
(unaudited)
Face | |||||
amount | Value | ||||
Bonds(concluded) | |||||
Non-US government obligations(concluded) | |||||
Vietnam0.17% | |||||
Socialist Republic of Vietnam, | |||||
6.750%, due 01/29/201 | $ | 200,000 | $ | 236,750 | |
6.875%, due 01/15/161 | 250,000 | 277,500 | |||
514,250 | |||||
Zambia0.13% | |||||
Republic of Zambia, | |||||
5.375%, due 09/20/222 | 400,000 | 393,000 | |||
Total Non-US government obligations | |||||
(cost $186,120,288) | 207,761,655 | ||||
Convertible bond 1.20% | |||||
China1.20% | |||||
China Petroleum & | |||||
Chemical Corp., | |||||
10.063%, due 04/24/147 | |||||
(cost $3,264,360) | HKD | 23,000,000 | 3,541,813 | ||
Structured notes6.43% | |||||
Ghana0.34% | |||||
Citigroup Funding Inc., | |||||
23.000%, due 08/23/172,7 | |||||
(linked to Ghana | |||||
Government Bonds, | |||||
23.000%, due 08/23/17) | $ | 1,750,000 | 996,215 | ||
India4.57% | |||||
Standard Chartered Bank, | |||||
7.830%, due 04/13/182 | |||||
(linked to Indian | |||||
Government Bonds, | |||||
7.830%, due 04/13/18) | 2,496,960 | 2,510,031 | |||
8.130%, due 09/23/222 | |||||
(linked to Indian | |||||
Government Bonds, | |||||
8.130%, due 09/23/22) | 5,918,535 | 5,936,012 | |||
8.130%, due 09/23/222 | |||||
(linked to Indian | |||||
Government Bonds, | |||||
8.130%, due 09/23/22) | 3,235,610 | 3,203,481 | |||
8.130%, due 09/23/222 | |||||
(linked to Indian | |||||
Government Bonds, | |||||
8.130%, due 09/23/22) | 1,792,460 | 1,790,293 | |||
13,439,817 | |||||
Sri Lanka1.52% | |||||
Citigroup Funding Inc, | |||||
5.800%, due 07/20/172 | |||||
(linked to Sri Lanka | |||||
Government Bonds, | |||||
5.800%, due 07/20/17) | LKR | 110,000,000 | 707,680 | ||
8.000%, due 06/20/172 | |||||
(linked to Sri Lanka | |||||
Government Bonds, | |||||
8.000%, due 06/20/17) | 240,000,000 | 1,698,632 | |||
8.500%, due 02/06/182 | |||||
(linked to Sri Lanka | |||||
Government Bonds, | |||||
8.500%, due 02/06/18) | 80,000,000 | 554,793 | |||
8.500%, due 04/01/182 | |||||
(linked to Sri Lanka | |||||
Government Bonds, | |||||
8.500%, due 04/01/18) | 218,000,000 | 1,511,810 | |||
4,472,915 | |||||
Total structured notes | |||||
(cost $18,713,632) | 18,908,947 | ||||
Total bonds | |||||
(cost $260,812,042) | 286,159,325 | ||||
Shares | |||||
Short-term investment0.25% | |||||
Investment company0.25% | |||||
UBS Cash Management Prime | |||||
Relationship Fund9 | |||||
(cost $745,439) | 745,439 | 745,439 | |||
Face amount | |||||
covered by | |||||
contracts | |||||
Options Purchased*0.25% | |||||
Call Options0.03% | |||||
Foreign Exchange Option, | |||||
Buy USD/CZK, strike @ CZK | |||||
19.8500, expires July 2013 | $ | 1,910,000 | 23,696 | ||
Foreign Exchange Option, | |||||
Buy USD/SAR, strike @ SAR | |||||
3.7468, expires July 2013 | 10,587,500 | 12,075 | |||
Foreign Exchange Option, | |||||
Buy USD/THB, strike @ | |||||
THB 29.7500, expires | |||||
October 2013 | 1,700,000 | 25,339 | |||
Foreign Exchange Option, | |||||
Buy USD/THB, strike @ | |||||
THB 30.0000, expires | |||||
October 2013 | 1,020,000 | 15,637 | |||
76,747 |
11 |
Global High Income Fund
Inc.
Portfolio of investmentsApril 30,
2013
(unaudited)
Face amount | |||||
covered by | |||||
contracts | Value | ||||
Options Purchased*(continued) | |||||
Put Options0.22% | |||||
Foreign Exchange Option, Buy | |||||
EUR/BRL, strike @ BRL 2.5700, | |||||
expires May 2013 | EUR | 2,040,000 | $ | 502 | |
Foreign Exchange Option, Buy | |||||
EUR/BRL, strike @ BRL 2.4000, | |||||
expires June 2013 | 1,360,000 | 41 | |||
Foreign Exchange Option, Buy | |||||
EUR/BRL, strike @ BRL 2.5200, | |||||
expires June 2013 | 1,360,000 | 2,058 | |||
Foreign Exchange Option, Buy | |||||
EUR/BRL, strike @ BRL 2.5400, | |||||
expires June 2013 | 1,350,000 | 4,327 | |||
Foreign Exchange Option, Buy | |||||
EUR/BRL, strike @ BRL 2.6500, | |||||
expires July 2013 | 1,020,000 | 22,235 | |||
Foreign Exchange Option, Buy | |||||
EUR/BRL, strike @ BRL 2.6400, | |||||
expires July 2013 | 1,020,000 | 19,954 | |||
Foreign Exchange Option, Buy | |||||
EUR/BRL, strike @ BRL 2.5000, | |||||
expires September 2013 | 3,400,000 | 19,635 | |||
Foreign Exchange Option, Buy | |||||
EUR/BRL, strike @ BRL 2.5000, | |||||
expires September 2013 | 1,680,000 | 9,572 | |||
Foreign Exchange Option, Buy | |||||
EUR/MXN, strike @ MXN | |||||
15.8800, expires May 2013 | 2,610,000 | 10,862 | |||
Foreign Exchange Option, Buy | |||||
EUR/MXN, strike @ MXN | |||||
15.9800, expires May 2013 | 2,400,000 | 14,539 | |||
Foreign Exchange Option, Buy | |||||
EUR/MXN, strike @ MXN | |||||
15.8500, expires May 2013 | 1,020,000 | 3,992 | |||
Foreign Exchange Option, Buy | |||||
EUR/MXN, strike @ MXN | |||||
16.0000, expires July 2013 | 820,000 | 12,890 | |||
Foreign Exchange Option, Buy | |||||
EUR/MXN, strike @ MXN | |||||
16.0000, expires July 2013 | 1,020,000 | 16,034 | |||
Foreign Exchange Option, Buy | |||||
EUR/PLN, strike @ PLN 4.0000, | |||||
expires October 2013 | 3,400,000 | 12,213 | |||
Foreign Exchange Option, Buy | |||||
EUR/PLN, strike @ PLN 4.0000, | |||||
expires January 2014 | 3,000,000 | 18,256 | |||
Foreign Exchange Option, | |||||
Buy EUR/RUB, strike @ RUB | |||||
40.8000, expires July 2013 | 1,680,000 | 18,634 | |||
Foreign Exchange Option, Buy | |||||
EUR/TRY, strike @ TRY 2.3300, | |||||
expires June 2013 | 3,400,000 | 12,554 | |||
Foreign Exchange Option, | |||||
Buy EUR/ZAR, strike @ ZAR | |||||
11.8000, expires June 2013 | EUR | 1,360,000 | 22,412 | ||
Foreign Exchange Option, | |||||
Buy EUR/ZAR, strike @ ZAR | |||||
11.5000, expires July 2013 | 1,010,000 | 9,193 | |||
Foreign Exchange Option, | |||||
Buy EUR/ZAR, strike @ ZAR | |||||
12.0000, expires July 2013 | 1,020,000 | 31,907 | |||
Foreign Exchange Option, | |||||
Buy EUR/ZAR, strike @ | |||||
ZAR 11.5000, expires | |||||
October 2013 | 1,910,000 | 35,086 | |||
Foreign Exchange Option, Buy | |||||
GBP/BRL, strike @ BRL 2.9000, | |||||
expires June 2013 | GBP | 1,450,000 | 157 | ||
Foreign Exchange Option, Buy | |||||
GBP/BRL, strike @ BRL 2.9000, | |||||
expires September 2013 | 2,410,000 | 4,171 | |||
Foreign Exchange Option, | |||||
Buy GBP/MXN, strike @ | |||||
MXN 18.8000, expires | |||||
September 2013 | 1,910,000 | 50,289 | |||
Foreign Exchange Option, | |||||
Buy GBP/RUB, strike @ | |||||
RUB 45.9000, expires | |||||
September 2013 | 3,900,000 | 16,034 | |||
Foreign Exchange Option, | |||||
Buy GBP/ZAR, strike @ | |||||
ZAR 13.2000, expires | |||||
September 2013 | 2,920,000 | 22,429 | |||
Foreign Exchange Option, | |||||
Buy GBP/ZAR, strike @ | |||||
ZAR 13.2000, expires | |||||
September 2013 | 1,820,000 | 13,980 | |||
Foreign Exchange Option, Buy | |||||
USD/BRL, strike @ BRL 1.9000, | |||||
expires April 2014 | $ | 9,860,000 | 64,473 | ||
Foreign Exchange Option, | |||||
Buy USD/CLP, strike @ CLP | |||||
465.0000, expires May 2013 | 6,000,000 | 3,321 | |||
Foreign Exchange Option, Buy | |||||
USD/MXN, strike @ MXN | |||||
12.0000, expires July 2013 | 1,360,000 | 10,872 | |||
Foreign Exchange Option, | |||||
Buy USD/MXN, strike @ | |||||
MXN 12.0000, expires | |||||
October 2013 | 3,370,000 | 46,066 | |||
Foreign Exchange Option, | |||||
Buy USD/RUB, strike @ RUB | |||||
30.4000, expires May 2013 | 2,430,000 | 4,551 | |||
Foreign Exchange Option, | |||||
Buy USD/RUB, strike @ RUB | |||||
31.0000, expires June 2013 | 1,500,000 | 11,459 |
12 |
Global High Income Fund
Inc.
Portfolio of
investmentsApril 30, 2013
(unaudited)
Face
amount covered by contracts |
Value | ||||
Options Purchased*(concluded) | |||||
Put Options(concluded) | |||||
Foreign Exchange Option, | |||||
Buy USD/SAR, strike @ SAR | |||||
3.7468, expires July 2013 | $ | 10,587,500 | $ | 1,793 | |
Foreign Exchange Option, | |||||
Buy USD/ZAR, strike @ ZAR | |||||
9.0000, expires June 2013 | 2,040,000 | 34,035 | |||
Foreign Exchange Option, | |||||
Buy USD/ZAR, strike @ ZAR | |||||
8.5000, expires July 2013 | 3,000,000 | 11,957 | |||
Foreign Exchange Option, | |||||
Buy USD/ZAR, strike @ ZAR | |||||
8.4000, expires August 2013 | 5,050,000 | 16,856 | |||
Foreign Exchange Option, | |||||
Buy USD/ZAR, strike @ | |||||
ZAR 9.0000, expires | |||||
September 2013 | 1,870,000 | 45,995 | |||
655,334 | |||||
Total options purchased | |||||
(cost $1,367,234) | 732,081 | ||||
Total investments 97.82% | |||||
(cost $262,924,715) | 287,636,845 | ||||
Cash and other assets, | |||||
less liabilities 2.18% | 6,408,319 | ||||
Net assets 100.00% | $ | 294,045,164 |
13 |
Global High Income Fund
Inc.
Portfolio of
investmentsApril 30, 2013
(unaudited)
Notes to portfolio of
investments
Aggregate cost for federal
income tax purposes was substantially the same as for book purposes; and net
unrealized appreciation consisted of:
Gross unrealized appreciation | $ | 31,036,493 | |
Gross unrealized depreciation | (6,324,363 | ) | |
Net unrealized appreciation of investments | $ | 24,712,130 |
For a listing of defined portfolio acronyms, counterparty abbreviations and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to page 21. Portfolio footnotes begin on page 20.
Forward foreign currency contracts
Counterparty | Contracts to deliver |
In exchange for | Maturity date |
Unrealized appreciation/ (depreciation) | ||||||||
BB | ARS | 1,754,000 | USD | 324,514 | 06/11/13 | $ | (1,273 | ) | ||||
BB | CLP | 1,918,500,000 | USD | 3,999,792 | 06/14/13 | (48,592 | ) | |||||
BB | COP | 2,863,660,000 | USD | 1,573,872 | 06/14/13 | 10,182 | ||||||
BB | EUR | 1,130,000 | USD | 1,478,962 | 07/11/13 | (9,911 | ) | |||||
BB | INR | 267,360,000 | USD | 4,807,768 | 06/14/13 | (112,819 | ) | |||||
BB | PEN | 5,150,000 | USD | 1,984,586 | 06/14/13 | 41,685 | ||||||
BB | SGD | 1,771,000 | USD | 1,425,134 | 05/29/13 | (12,721 | ) | |||||
BB | SGD | 315,000 | USD | 257,416 | 07/08/13 | 1,662 | ||||||
BB | USD | 317,117 | ARS | 1,760,000 | 06/11/13 | 9,784 | ||||||
BB | USD | 11,481,617 | CNY | 72,139,000 | 06/14/13 | 193,920 | ||||||
BB | USD | 2,619,305 | HUF | 606,500,000 | 06/14/13 | 36,831 | ||||||
BB | USD | 6,082,912 | KRW | 6,634,024,300 | 06/14/13 | (68,884 | ) | |||||
BB | USD | 3,707,355 | RUB | 115,667,999 | 06/14/13 | (20,685 | ) | |||||
BB | USD | 256,031 | SGD | 315,000 | 07/08/13 | (277 | ) | |||||
BB | USD | 2,292,185 | ZAR | 20,990,000 | 06/14/13 | 33,146 | ||||||
CSI | BRL | 31,838,994 | USD | 16,023,651 | 06/14/13 | 194,905 | ||||||
CSI | CLP | 489,311,000 | USD | 1,026,993 | 05/29/13 | (7,827 | ) | |||||
CSI | IDR | 12,500,000,000 | USD | 1,273,561 | 06/14/13 | (5,189 | ) | |||||
CSI | INR | 188,830,000 | USD | 3,414,894 | 06/14/13 | (60,399 | ) | |||||
CSI | USD | 158,559 | ARS | 880,000 | 06/11/13 | 4,892 | ||||||
CSI | USD | 324,214 | ARS | 1,754,000 | 06/14/13 | 584 | ||||||
CSI | USD | 1,020,000 | CLP | 489,311,000 | 05/29/13 | 14,820 | ||||||
CSI | USD | 3,894,183 | HUF | 902,087,499 | 06/14/13 | 56,463 | ||||||
CSI | USD | 6,131,753 | IDR | 60,060,516,958 | 06/14/13 | 12,439 | ||||||
CSI | USD | 2,946,409 | INR | 162,630,000 | 06/14/13 | 46,691 | ||||||
CSI | USD | 1,985,996 | RUB | 62,400,000 | 06/14/13 | 2,870 | ||||||
DB | EUR | 2,392,000 | USD | 3,143,853 | 05/29/13 | (6,847 | ) | |||||
DB | GBP | 2,375,188 | SGD | 4,464,000 | 05/29/13 | (64,532 | ) | |||||
DB | GBP | 471,000 | USD | 728,166 | 05/29/13 | (3,324 | ) | |||||
DB | MXN | 11,730,000 | USD | 963,252 | 05/29/13 | (562 | ) | |||||
DB | MXN | 48,220,000 | USD | 3,864,432 | 06/14/13 | (92,395 | ) | |||||
DB | PLN | 18,540,000 | USD | 5,674,410 | 06/14/13 | (174,075 | ) | |||||
DB | THB | 33,950,000 | USD | 1,156,335 | 06/14/13 | 2,519 | ||||||
DB | UAH | 2,238,000 | USD | 226,404 | 02/03/14 | (12,785 | ) | |||||
DB | UAH | 3,861,000 | USD | 422,660 | 02/03/14 | 10,010 | ||||||
DB | USD | 949,951 | MXN | 11,730,000 | 05/29/13 | 13,863 | ||||||
DB | USD | 5,146,675 | THB | 153,338,590 | 06/14/13 | 64,651 | ||||||
DB | USD | 2,969,212 | TRY | 5,420,000 | 06/14/13 | 40,236 | ||||||
DB | USD | 5,932,754 | TWD | 175,490,872 | 06/14/13 | 16,950 |
14 |
Global High Income Fund
Inc.
Portfolio of
investmentsApril 30, 2013
(unaudited)
Forward foreign currency contracts (concluded)
Counterparty | Contracts to deliver |
In exchange for | Maturity date |
Unrealized appreciation/ (depreciation) | ||||||||
DB | USD | 5,625,766 | ZAR | 51,860,000 | 06/14/13 | $ | 119,430 | |||||
GSI | BRL | 2,200,000 | USD | 1,077,111 | 06/14/13 | (16,618 | ) | |||||
GSI | PHP | 8,950,000 | USD | 220,443 | 06/14/13 | 3,398 | ||||||
GSI | RON | 1,400,000 | USD | 410,196 | 06/14/13 | (13,980 | ) | |||||
GSI | TRY | 5,720,000 | USD | 3,114,959 | 06/14/13 | (61,063 | ) | |||||
GSI | UAH | 2,238,000 | USD | 226,289 | 02/03/14 | (12,900 | ) | |||||
GSI | USD | 158,559 | ARS | 880,000 | 06/11/13 | 4,892 | ||||||
GSI | USD | 14,086,251 | MXN | 179,545,000 | 06/14/13 | 646,816 | ||||||
GSI | USD | 11,034,923 | MYR | 34,500,687 | 06/14/13 | 268,125 | ||||||
GSI | USD | 5,458,257 | PLN | 17,515,000 | 06/14/13 | 66,890 | ||||||
GSI | USD | 6,430,284 | TRY | 11,679,324 | 06/14/13 | 54,646 | ||||||
JPMCB | MXN | 14,350,000 | USD | 1,174,112 | 06/14/13 | (3,417 | ) | |||||
JPMCB | USD | 317,143 | ARS | 1,776,000 | 06/11/13 | 12,730 | ||||||
JPMCB | USD | 594,619 | RON | 2,000,000 | 06/14/13 | 11,347 | ||||||
RBS | USD | 475,837 | ARS | 2,652,000 | 06/11/13 | 16,743 | ||||||
SSB | EUR | 7,980,000 | USD | 10,399,935 | 07/11/13 | (114,406 | ) | |||||
Net unrealized appreciation on forward foreign currency contracts | $ | 1,088,639 |
Futures contracts
Expiration date |
Cost/ (proceeds) |
Value | Unrealized appreciation/ (depreciation) | ||||||||||
US Treasury futures buy contracts: | |||||||||||||
5 Year US Treasury Notes, 65 contracts (USD) | June 2013 | $ | 8,055,714 | $ | 8,101,641 | $ | 45,927 | ||||||
10 Year US Treasury Notes, 70 contracts (USD) | June 2013 | 9,202,669 | 9,335,156 | 132,487 | |||||||||
US Treasury futures sell contracts: | |||||||||||||
US Long Bond, 45 contracts (USD) | June 2013 | (6,506,639 | ) | (6,676,875 | ) | (170,236 | ) | ||||||
Net unrealized appreciation on futures contracts | $ | 8,178 |
Options written
Expiration date |
Premiums received |
Value | ||||||
Call options | ||||||||
Foreign Exchange Option, Sell EUR/BRL, EUR 2,040,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.7700 | July 2013 | $ | 25,400 | $ | (22,909 | ) | ||
Foreign Exchange Option, Sell USD/BRL, USD 2,410,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.0300 | June 2013 | 20,292 | (17,973 | ) | ||||
Foreign Exchange Option, Sell USD/BRL, USD 1,350,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.0300 | June 2013 | 11,813 | (10,346 | ) | ||||
Foreign Exchange Option, Sell USD/BRL, USD 1,960,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.0800 | February 2014 | 74,294 | (76,910 | ) | ||||
Foreign Exchange Option, Sell USD/BRL, USD 4,080,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.2500 | April 2014 | 98,868 | (93,208 | ) | ||||
Foreign Exchange Option, Sell USD/CLP, USD 1,020,000 | ||||||||
face amount covered by contracts, strike @ CLP 472.3000 | May 2013 | 9,160 | (4,640 | ) | ||||
Foreign Exchange Option, Sell USD/CLP, USD 1,020,000 | ||||||||
face amount covered by contracts, strike @ CLP 474.0000 | June 2013 | 14,362 | (10,487 | ) | ||||
Foreign Exchange Option, Sell USD/CZK, USD 1,910,000 | ||||||||
face amount covered by contracts, strike @ CZK 20.5000 | July 2013 | 16,808 | (10,795 | ) | ||||
Foreign Exchange Option, Sell USD/THB, USD 1,020,000 | ||||||||
face amount covered by contracts, strike @ THB 32.0000 | October 2013 | 3,427 | (3,427 | ) | ||||
Foreign Exchange Option, Sell USD/THB, USD 1,700,000 | ||||||||
face amount covered by contracts, strike @ THB 31.0000 | October 2013 | 10,982 | (9,193 | ) |
15 |
Global High Income Fund
Inc.
Portfolio of
investmentsApril 30, 2013
(unaudited)
Options written (concluded)
Expiration date |
Premiums received |
Value | ||||||
Put options | ||||||||
Foreign Exchange Option, Sell EUR/BRL, EUR 2,700,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.4400 | June 2013 | $ | 7,687 | $ | (777 | ) | ||
Foreign Exchange Option, Sell EUR/BRL, EUR 1,020,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.5600 | July 2013 | 11,684 | (7,466 | ) | ||||
Foreign Exchange Option, Sell EUR/BRL, EUR 1,020,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.5500 | July 2013 | 9,825 | (6,636 | ) | ||||
Foreign Exchange Option, Sell EUR/BRL, EUR 3,400,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.4000 | September 2013 | 15,630 | (5,425 | ) | ||||
Foreign Exchange Option, Sell EUR/BRL, EUR 1,680,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.4000 | September 2013 | 8,054 | (2,612 | ) | ||||
Foreign Exchange Option, Sell EUR/MXN, EUR 1,020,000 | ||||||||
face amount covered by contracts, strike @ MXN 15.5000 | May 2013 | 3,111 | (582 | ) | ||||
Foreign Exchange Option, Sell EUR/MXN, EUR 820,000 | ||||||||
face amount covered by contracts, strike @ MXN 15.5000 | July 2013 | 7,702 | (3,521 | ) | ||||
Foreign Exchange Option, Sell EUR/MXN, EUR 1,020,000 | ||||||||
face amount covered by contracts, strike @ MXN 15.5000 | July 2013 | 7,125 | (4,380 | ) | ||||
Foreign Exchange Option, Sell EUR/PLN, EUR 3,400,000 | ||||||||
face amount covered by contracts, strike @ PLN 3.9000 | October 2013 | 5,687 | (3,904 | ) | ||||
Foreign Exchange Option, Sell EUR/PLN, EUR 3,000,000 | ||||||||
face amount covered by contracts, strike @ PLN 3.9000 | January 2014 | 12,506 | (7,790 | ) | ||||
Foreign Exchange Option, Sell EUR/RUB, EUR 1,680,000 | ||||||||
face amount covered by contracts, strike @ RUB 40.0000 | July 2013 | 6,670 | (6,804 | ) | ||||
Foreign Exchange Option, Sell EUR/TRY, EUR 4,260,000 | ||||||||
face amount covered by contracts, strike @ TRY 2.2800 | June 2013 | 6,703 | (2,881 | ) | ||||
Foreign Exchange Option, Sell EUR/ZAR, EUR 1,360,000 | ||||||||
face amount covered by contracts, strike @ ZAR 11.2000 | June 2013 | 7,272 | (3,083 | ) | ||||
Foreign Exchange Option, Sell EUR/ZAR, EUR 1,010,000 | ||||||||
face amount covered by contracts, strike @ ZAR 11.0000 | July 2013 | 4,611 | (2,153 | ) | ||||
Foreign Exchange Option, Sell EUR/ZAR, EUR 2,040,000 | ||||||||
face amount covered by contracts, strike @ ZAR 11.4000 | July 2013 | 10,928 | (15,526 | ) | ||||
Foreign Exchange Option, Sell EUR/ZAR, EUR 1,910,000 | ||||||||
face amount covered by contracts, strike @ ZAR 11.0000 | October 2013 | 19,768 | (14,619 | ) | ||||
Foreign Exchange Option, Sell GBP/BRL, GBP 1,450,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.8000 | June 2013 | 13,154 | (3 | ) | ||||
Foreign Exchange Option, Sell GBP/BRL, GBP 2,410,000 | ||||||||
face amount covered by contracts, strike @ BRL 2.7500 | September 2013 | 23,984 | (272 | ) | ||||
Foreign Exchange Option, Sell GBP/MXN, GBP 2,870,000 | ||||||||
face amount covered by contracts, strike @ MXN 17.9000 | September 2013 | 31,688 | (20,153 | ) | ||||
Foreign Exchange Option, Sell GBP/RUB, GBP 3,900,000 | ||||||||
face amount covered by contracts, strike @ RUB 44.2000 | September 2013 | 31,451 | (6,731 | ) | ||||
Foreign Exchange Option, Sell GBP/ZAR, GBP 4,740,000 | ||||||||
face amount covered by contracts, strike @ ZAR 12.7500 | September 2013 | 58,297 | (15,086 | ) | ||||
Foreign Exchange Option, Sell USD/BRL, USD 9,860,000 | ||||||||
face amount covered by contracts, strike @ BRL 1.8000 | April 2014 | 26,166 | (20,188 | ) | ||||
Foreign Exchange Option, Sell USD/MXN, USD 6,740,000 | ||||||||
face amount covered by contracts, strike @ MXN 11.5000 | October 2013 | 31,354 | (25,640 | ) | ||||
Foreign Exchange Option, Sell USD/ZAR, USD 1,360,000 | ||||||||
face amount covered by contracts, strike @ ZAR 8.6500 | June 2013 | 4,529 | (5,979 | ) | ||||
Foreign Exchange Option, Sell USD/ZAR, USD 3,740,000 | ||||||||
face amount covered by contracts, strike @ ZAR 8.4000 | September 2013 | 18,737 | (20,379 | ) | ||||
Total options written | $ | 669,729 | $ | (462,478 | ) |
16 |
Global High Income Fund
Inc.
Portfolio of
investmentsApril 30, 2013
(unaudited)
Foreign exchange written option activity for the period ended April 30, 2013 was as follows:
Premiums received | |||
Foreign exchange options outstanding at October 31, 2012 | $ | 43,987 | |
Foreign exchange options written | 2,254,343 | ||
Foreign exchange options terminated in closing purchase transactions | (1,624,254 | ) | |
Foreign exchange options expired prior to exercise | (4,347 | ) | |
Foreign exchange options outstanding at April 30, 2013 | $ | 669,729 |
Currency swap agreements4
Counterparty | Pay contracts |
Receive contracts |
Termination date |
Pay rate10 |
Receive rate10 |
Upfront payments |
Value | Unrealized appreciation/ (depreciation) | ||||||||||||||
6 month | ||||||||||||||||||||||
BB | INR | 308,000,000 | USD | 5,966,670 | 12/05/16 | 4.500% | USD LIBOR | | $ | 444,005 | $ | 444,005 | ||||||||||
6 month | ||||||||||||||||||||||
BB | PHP | 85,653,500 | USD | 2,085,803 | 12/18/15 | 1.300 | USD LIBOR | | (16,822 | ) | (16,822 | ) | ||||||||||
6 month | ||||||||||||||||||||||
CITI | USD | 3,206,107 | COP | 6,300,000,000 | 06/11/13 | USD LIBOR | 5.250% | | 316,172 | 316,172 | ||||||||||||
| $ | 743,355 | $ | 743,355 |
Interest rate swap agreements
Counterparty | Notional amount |
Termination date |
Payments made by the Fund10 |
Payments received by the Fund10 |
Upfront payments |
Value | Unrealized appreciation/ (depreciation) | ||||||||||||
BB | KRW | 3,250,000,000 | 08/19/16 | 3.530% | 3 month CD KSDA | | $ | (84,800 | ) | $ | (84,800 | ) | |||||||
BB | MYR | 10,700,000 | 08/23/22 | 3 month KLIBOR | 3.880% | | 14,570 | 14,570 | |||||||||||
CITI | KRW | 2,900,000,000 | 08/26/16 | 3.410 | 3 month CD KSDA | | (66,634 | ) | (66,634 | ) | |||||||||
CITI | MYR | 1,950,000 | 08/24/15 | 3 month KLIBOR | 3.505 | | 5,166 | 5,166 | |||||||||||
CITI | MYR | 14,550,000 | 08/23/22 | 3 month KLIBOR | 3.860 | | 15,869 | 15,869 | |||||||||||
DB | MYR | 7,650,000 | 08/24/15 | 3 month KLIBOR | 3.500 | | 19,960 | 19,960 | |||||||||||
DB | MYR | 20,450,000 | 08/23/22 | 3 month KLIBOR | 3.860 | | 22,305 | 22,305 | |||||||||||
DB | TWD | 85,000,000 | 08/22/16 | 1.325 | 3 month TWCPBA | | (29,842 | ) | (29,842 | ) | |||||||||
GSI | TWD | 85,500,000 | 08/26/16 | 1.280 | 3 month TWCPBA | | (25,907 | ) | (25,907 | ) | |||||||||
MLI | MXN | 7,200,000 | 11/16/28 | 28 day MXIBTIIE | 8.830 | | 201,461 | 201,461 | |||||||||||
MLI | MXN | 7,000,000 | 11/21/28 | 28 day MXIBTIIE | 8.610 | | 181,986 | 181,986 | |||||||||||
| $ | 254,134 | $ | 254,134 |
17 |
Global High Income Fund
Inc.
Portfolio of
investmentsApril 30, 2013
(unaudited)
Credit default swaps on credit indicesbuy protection11
Counterparty | Referenced Index12 |
Notional amount |
Termination date |
Payments made by the Fund10 |
Upfront payments received |
Value | Unrealized depreciation | |||||||||||||||
BB | CDX.EM Series 18 Index | USD 2,350,000 | 12/20/17 | 5.000 | % | $ | 282,470 | $ | (289,015 | ) | $ | (6,545 | ) | |||||||||
DB | CDX.EM Series 17 Index | USD 1,900,000 | 06/20/17 | 5.000 | 207,100 | (213,096 | ) | (5,996 | ) | |||||||||||||
GSI | CDX.EM Series 18 Index | USD 4,050,000 | 12/20/17 | 5.000 | 470,775 | (498,089 | ) | (27,314 | ) | |||||||||||||
MLI | CDX.EM Series 18 Index | USD 1,100,000 | 12/20/17 | 5.000 | 128,700 | (135,284 | ) | (6,584 | ) | |||||||||||||
$ | 1,089,045 | $ | (1,135,484 | ) | $ | (46,439 | ) |
Credit default swaps on sovereign issuessell protection13
Counterparty | Referenced Obligation12 |
Notional amount |
Termination date |
Payments received by the Fund10 |
Upfront payments (made)/ received |
Value | Unrealized appreciation |
Credit spread14 | |||||||||||||||||
BB | Federation of Russia | ||||||||||||||||||||||||
bond, 2.250%, | |||||||||||||||||||||||||
due 03/31/30 | USD | 2,900,000 | 12/20/22 | 1.000 | % | $ | 277,973 | $ | (204,734 | ) | $ | 73,239 | 1.853 | % | |||||||||||
BB | Federal Republic of | ||||||||||||||||||||||||
Brazil bond, 12.250%, | |||||||||||||||||||||||||
due 03/06/30 | USD | 180,000 | 06/20/22 | 1.000 | 14,775 | (6,673 | ) | 8,102 | 1.466 | ||||||||||||||||
CITI | Republic of Korea bond, | ||||||||||||||||||||||||
4.875%, due 09/22/14 | USD | 2,860,000 | 06/20/18 | 1.000 | (25,725 | ) | 45,324 | 19,599 | 0.708 | ||||||||||||||||
CSI | United Mexican | ||||||||||||||||||||||||
States bond, 7.500%, | |||||||||||||||||||||||||
due 04/08/33 | USD | 1,000,000 | 02/20/14 | 4.170 | | 40,791 | 40,791 | 0.184 | |||||||||||||||||
DB | Federal Republic of | ||||||||||||||||||||||||
Brazil bond, 12.250%, | |||||||||||||||||||||||||
due 03/06/30 | USD | 800,000 | 06/20/22 | 1.000 | 64,908 | (29,657 | ) | 35,251 | 1.466 | ||||||||||||||||
$ | 331,931 | $ | (154,949 | ) | $ | 176,982 |
18 |
Global High Income Fund
Inc.
Portfolio of
investmentsApril 30, 2013
(unaudited)
The following is a summary of the fair valuations according to the inputs used as of April 30, 2013 in valuing the Funds investments:
Description | Unadjusted quoted prices in active markets for identical investments (Level 1) |
Other
significant observable inputs (Level 2) |
Unobservable inputs (Level 3) |
Total | ||||||||||
Corporate bonds | $ | | $ | 55,946,910 | $ | $ | 55,946,910 | |||||||
Non-US government obligations | | 207,761,655 | | 207,761,655 | ||||||||||
Convertible bond | | 3,541,813 | | 3,541,813 | ||||||||||
Structured notes | | 18,908,947 | | 18,908,947 | ||||||||||
Short-term investment | | 745,439 | | 745,439 | ||||||||||
Options purchased | | 732,081 | | 732,081 | ||||||||||
Forward foreign currency contracts, net | | 1,088,639 | | 1,088,639 | ||||||||||
Futures contracts, net | 8,178 | | | 8,178 | ||||||||||
Options written | | (462,478 | ) | | (462,478 | ) | ||||||||
Swap agreements, net | | (292,944 | ) | | (292,944 | ) | ||||||||
Total | $ | 8,178 | $ | 287,970,062 | $ | $ | 287,978,240 |
Level 3 rollforward disclosure
The following is a rollforward of the Funds investments that were valued using unobservable inputs for the period:
Corporate bonds | |||
Assets | |||
Beginning balance | $ | 440 | |
Purchases | | ||
Issuances | | ||
Sales | 0 | ||
Accrued discounts (premiums) | | ||
Total realized gain (loss) | (4,243,962 | ) | |
Change in net unrealized appreciation/depreciation | 4,243,522 | ||
Transfers into Level 3 | | ||
Transfers out of Level 3 | | ||
Ending balance | $ | |
19 |
Global
High Income Fund Inc.
Portfolio of investmentsApril 30, 2013
(unaudited)
Portfolio footnotes
* |
Non-income producing security. | |
1 | Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At April 30, 2013, the value of these securities amounted to $60,855,864 or 20.70% of net assets. | |
2 | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At April 30, 2013, the value of these securities amounted to $49,371,461 or 16.79% of net assets. | |
3 | Variable or floating rate security The interest rate shown is the current rate as of April 30, 2013 and changes periodically. | |
4 | Security is illiquid. At April 30, 2013, the value of this security and other illiquid derivative instruments amounted to $2,462,184 or 0.84% of net assets. | |
5 | Security pays, when required, a floating rate that is determined annually based on the Argentina GDP. | |
6 | Debt security whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The interest rate paid by the securities is fixed, while the principal value rises or falls based on changes in an index. Thus, if inflation occurs, the principal and interest payments on the securities are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the securities principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the securities generally pay lower interest rates than typical government securities from the issuer's country. Only if inflation occurs will securities offer a higher real yield than a conventional security of the same maturity. | |
7 | Rate shown reflects annualized yield at April 30, 2013 on zero coupon bond. | |
8 | Step bond Coupon rate increases in increments to maturity. Rate disclosed is as of April 30, 2013. Maturity date disclosed is the ultimate maturity date. | |
9 | The table below details the Funds investment in a fund advised by the same advisor as the Fund. The advisor does not earn a management fee from the affiliated UBS Relationship Fund. |
Security description | Value 10/31/12 |
Purchases during the six months ended 04/30/13 |
Sales during the six months ended 04/30/13 |
Value 04/30/13 |
Income earned from affiliate for the six months ended 04/30/13 | |||||
UBS Cash Management Prime Relationship Fund | $11,067,701 | $38,580,343 | $48,902,605 | $745,439 | $5,888 |
10 |
Payments made or received are based on the notional amount. | |
11 | If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the underlying securities comprising the referenced index. | |
12 | Payments from/to the counterparty will be received/made upon the occurrence of bankruptcy and/or restructuring event with respect to the referenced index/obligation. | |
13 | If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation. | |
14 | Credit spreads, represented in absolute terms, utilized in determining the market value as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default or other credit event occurring for the credit derivative. The credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entitys credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as Defaulted indicates a credit event has occurred for the referenced entity. |
20 |
Global
High Income Fund Inc.
Portfolio of investmentsApril 30, 2013
(unaudited)
Portfolio acronyms | ||||||
CD KSDA | Korean Securities Dealer Association 91-day | KLIBOR | Korea Interbank Offered Rate | |||
Certificate of Deposit Rate | LIBOR | London Interbank Offered Rate | ||||
GDP | Gross Domestic Product | MXIBTIIE | Mexico Interbank TIIE 28 Day Rate | |||
JSC | Joint stock company | OJSC | Open joint stock company | |||
TWCPBA | Taiwan Secondary Markets Bills Rate | |||||
Counterparty abbreviations | ||||||
BB | Barclays Bank PLC | JPMCB | JPMorgan Chase Bank | |||
CITI | Citibank NA | MLI | Merrill Lynch International | |||
CSI | Credit Suisse International | RBS | Royal Bank of Scotland PLC | |||
DB | Deutsche Bank AG | SSB | State Street Bank & Trust | |||
GSI | Goldman Sachs International | |||||
Currency abbreviations | ||||||
ARS | Argentine Peso | MYR | Malaysian Ringgit | |||
BRL | Brazilian Real | NGN | Nigerian Naira | |||
CLP | Chilean Peso | PEN | Peru Nuevo Sol | |||
CNY | Chinese Yuan | PHP | Philippine Peso | |||
COP | Colombian Peso | PLN | Polish Zloty | |||
CZK | Czech Koruna | RON | Romanian Leu | |||
EUR | Euro | RUB | Russian Ruble | |||
GBP | Great Britain Pound | SAR | Saudi Arabian Riyal | |||
HKD | Hong Kong Dollar | SGD | Singapore Dollar | |||
HUF | Hungarian Forint | THB | Thai Baht | |||
IDR | Indonesian Rupiah | TRY | Turkish Lira | |||
INR | Indian Rupee | TWD | New Taiwan Dollar | |||
KRW | Korean Won | UAH | Ukrainian Hryvna | |||
LKR | Sri Lanka Rupee | USD | United States Dollar | |||
MXN | Mexican Peso | ZAR | South African Rand |
See accompanying notes to financial statements | 21 |
Global
High Income Fund Inc.
Statement of assets and liabilitiesApril
30, 2013
(unaudited)
Assets: | ||||
Investments in securities of unaffiliated issuers, at value (cost$262,179,276) | $ | 286,891,406 | ||
Investment in affiliated issuer, at value (cost$745,439) | 745,439 | |||
Total investments, at value (cost$262,924,715) | 287,636,845 | |||
Foreign currency, at value (cost$623,476) | 621,580 | |||
Cash | 1,412,571 | |||
Interest receivable | 4,856,840 | |||
Receivable for investments sold | 1,320,577 | |||
Foreign tax reclaims receivable | 113,226 | |||
Due from broker | 3,558 | |||
Cash collateral for futures contracts | 94,350 | |||
Cash collateral for swap agreements | 1,270,000 | |||
Outstanding swap agreements, at value1 | 1,307,609 | |||
Unrealized appreciation on forward foreign currency contracts | 2,014,120 | |||
Other assets | 20,063 | |||
Total assets | 300,671,339 | |||
Liabilities: | ||||
Payable for investments purchased | 2,781,187 | |||
Outstanding swap agreements, at value1 | 1,600,553 | |||
Unrealized depreciation on forward foreign currency contracts | 925,481 | |||
Options written, at value (premiums received$669,729) | 462,478 | |||
Deferred capital gain country tax | 337,421 | |||
Payable for investment advisory and administration fees | 255,970 | |||
Directors fees payable | 4,199 | |||
Accrued expenses and other liabilities | 258,886 | |||
Total liabilities | 6,626,175 | |||
Net assets:2 | ||||
Capital stock$0.001 par value; 100,000,000 shares authorized; 21,591,836 shares issued and outstanding | $ | 280,838,723 | ||
Distributions in excess of net investment income | (8,705,191 | ) | ||
Accumulated net realized loss | (4,895,028 | ) | ||
Net unrealized appreciation | 26,806,660 | |||
Net assets | $ | 294,045,164 | ||
Net asset value per share | $ | 13.62 |
1 | Net upfront payments received by the Fund on outstanding swap agreements amounted to $1,420,976. | |
2 | The actual sources of the Funds fiscal year 2013 dividends/distributions may be net investment income, net realized capital gains, return of capital or a combination of the foregoing and may be subject to retroactive recharacterization at the end of the Funds fiscal year based on tax regulations. Shareholders will be informed of the tax characteristics of dividends/distributions after the close of the 2013 fiscal year. |
22 | See accompanying notes to financial statements |
Global
High Income Fund Inc.
Statement of
operations
For the six months ended April 30, 2013 (unaudited) | ||||||
Investment income: | ||||||
Interest income, net of foreign withholding taxes of $174,436 | $ | 10,392,709 | ||||
Affiliated interest | 5,888 | |||||
Total income | 10,398,597 | |||||
Expenses: | ||||||
Investment advisory and administration fees | 1,813,708 | |||||
Custody and accounting fees | 159,973 | |||||
Professional fees | 63,160 | |||||
Reports and notices to shareholders | 42,099 | |||||
Listing fees | 11,766 | |||||
Directors fees | 8,660 | |||||
Transfer agency fees | 8,275 | |||||
Insurance expense | 3,137 | |||||
Other expenses | 19,289 | |||||
Total expenses | 2,130,067 | |||||
Less: Fee waivers by investment advisor and administrator | (263,366 | ) | ||||
Net expenses | 1,866,701 | |||||
Net investment income | 8,531,896 | |||||
Realized and unrealized gains (losses) | ||||||
from investment activities: | ||||||
Net realized gain (loss) on: | ||||||
Investments | (3,025,329 | ) | ||||
Futures contracts | 129,723 | |||||
Options written | 321,406 | |||||
Swap agreements | (955,134 | ) | ||||
Forward foreign currency contracts | 552,090 | |||||
Foreign currency transactions | (1,669,376 | ) | ||||
Change in net unrealized appreciation/depreciation on: | ||||||
Investments | 8,988,299 | |||||
Futures contracts | (44,613 | ) | ||||
Options written | 175,051 | |||||
Swap agreements | 1,037,331 | |||||
Forward foreign currency contracts | (102,286 | ) | ||||
Translation of other assets and liabilities denominated in foreign currency | 12,430 | |||||
Net realized and unrealized gain from investment activities | 5,419,592 | |||||
Net increase in net assets resulting from operations | $ | 13,951,488 |
See accompanying notes to financial statements | 23 |
Global
High Income Fund Inc.
Statement of changes in net
assets
For the six months ended April 30, 2013 (unaudited) |
For the year ended October 31, 2012 | |||||||||||
From operations: | ||||||||||||
Net investment income | $ | 8,531,896 | $ | 17,115,420 | ||||||||
Net realized gain (loss) | (4,646,620 | ) | 7,037,450 | |||||||||
Change in net unrealized appreciation/depreciation | 10,066,212 | 6,767,688 | ||||||||||
Net increase in net assets resulting from operations | 13,951,488 | 30,920,558 | ||||||||||
Dividends and distributions to | ||||||||||||
shareholders from: | ||||||||||||
Net investment income | (10,273,396 | )1 | (15,338,633 | ) | ||||||||
Net realized gains | | (6,013,534 | ) | |||||||||
Total dividends and distributions to shareholders | (10,273,396 | ) | (21,352,167 | ) | ||||||||
Net increase in net assets | 3,678,092 | 9,568,391 | ||||||||||
Net assets: | ||||||||||||
Beginning of period | 290,367,072 | 280,798,681 | ||||||||||
End of period | $ | 294,045,164 | $ | 290,367,072 | ||||||||
Distributions in excess of net investment income | $ | (8,705,191 | )1 | $ | (6,963,691 | ) |
1 | The actual sources of the Funds fiscal year 2013 dividends/distributions may be net investment income, net realized capital gains, return of capital or a combination of the foregoing and may be subject to retroactive recharacterization at the end of the Funds fiscal year based on tax regulations. Shareholders will be informed of the tax characteristics of dividends/distributions after the close of the 2013 fiscal year. |
24 | See accompanying notes to financial statements |
Global
High Income Fund Inc.
Financial
highlights
Selected data for a share of
common stock outstanding throughout each period is presented below:
For the |
For the years ended October 31, | |||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||
Net asset value, beginning of period | $13.45 | $13.00 | $14.16 | $12.90 | $9.82 | $15.26 | ||||||||||||
Net investment income1 | 0.40 | 0.79 | 0.63 | 0.77 | 0.76 | 0.84 | ||||||||||||
Net realized and unrealized gains (losses) | 0.25 | 0.65 | (0.39 | ) | 1.55 | 3.30 | (4.28 | ) | ||||||||||
Net increase (decrease) from operations | 0.65 | 1.44 | 0.24 | 2.32 | 4.06 | (3.44 | ) | |||||||||||
Dividends from net investment income | (0.48 | )2 | (0.71 | ) | (1.37 | ) | (1.06 | ) | (0.72 | ) | (0.95 | ) | ||||||
Distributions from net realized gains | | (0.28 | ) | | | | (0.73 | ) | ||||||||||
Return of capital | | | (0.03 | ) | | (0.26 | ) | (0.32 | ) | |||||||||
Total dividends, distributions and return of capital | (0.48 | ) | (0.99 | ) | (1.40 | ) | (1.06 | ) | (0.98 | ) | (2.00 | ) | ||||||
Net asset value, end of period | $13.62 | $13.45 | $13.00 | $14.16 | $12.90 | $9.82 | ||||||||||||
Market price, end of period | $12.94 | $12.74 | $12.54 | $14.98 | $11.47 | $8.22 | ||||||||||||
Total net asset value return3 | 4.87 | % | 11.53 | % | 1.95 | % | 18.91 | % | 43.02 | % | (25.76 | )% | ||||||
Total market price return4 | 5.34 | % | 9.79 | % | (6.98 | )% | 41.52 | % | 54.20 | % | (33.99 | )% | ||||||
Ratios to average net assets: | ||||||||||||||||||
Expenses before fee waivers | 1.47 | %5 | 1.48 | % | 1.50 | % | 1.54 | % | 1.56 | % | 1.48 | % | ||||||
Expenses after fee waivers | 1.29 | %5 | 1.36 | % | 1.44 | % | 1.47 | % | 1.51 | % | 1.39 | % | ||||||
Net investment income | 5.88 | %5 | 6.10 | % | 4.64 | % | 5.76 | % | 6.71 | % | 6.01 | % | ||||||
Supplemental data: | ||||||||||||||||||
Net assets, end of period (000s) | $294,045 | $290,367 | $280,799 | $305,683 | $278,635 | $212,049 | ||||||||||||
Portfolio turnover rate | 25 | % | 52 | % | 71 | % | 84 | % | 104 | % | 83 | % |
1 | Calculated using the average shares method. | |
2 | The actual sources of the Funds fiscal year 2013 dividends/distributions may be net investment income, net realized capital gains, return of capital or a combination of the foregoing and may be subject to retroactive recharacterization at the end of the Funds fiscal year based on tax regulations. Shareholders will be informed of the tax characteristics of dividends/distributions after the close of the 2013 fiscal year. | |
3 | Total net asset value return is calculated assuming a $10,000 purchase of common stock at the current net asset value on the first day of each period reported and a sale at the current net asset value on the last day of each period reported, and assuming reinvestment of dividends and other distributions at the net asset value on the payable dates. Total net asset value return does not reflect the deduction of taxes that a shareholder would pay on Fund dividends/distributions or a sale of Fund shares. Total return based on net asset value is hypothetical as investors cannot purchase or sell Fund shares at the net asset value but only at market prices. Total net asset value return for the period of less than one year has not been annualized. | |
4 | Total market price return is calculated assuming a $10,000 purchase of common stock at the current market price on the first day of each period reported and a sale at the current market price on the last day of each period reported, and assuming reinvestment of dividends and other distributions at prices obtained under the Funds Dividend Reinvestment Plan. Total market price return does not reflect brokerage commissions or the deduction of taxes that a shareholder would pay on Fund dividends/distributions or a sale of Fund shares. Total market price return for the period of less than one year has not been annualized. | |
5 | Annualized. |
See accompanying notes to financial statements | 25 |
Global
High Income Fund Inc.
Notes to financial statements
(unaudited)
Organization and significant accounting
policies
Global High Income
Fund Inc. (the Fund) was incorporated in Maryland on February 23, 1993 and is
registered with the US Securities and Exchange Commission (SEC) as a
closed-end, non-diversified management investment company. The Funds primary
investment objective is to achieve a high level of current income. As a
secondary objective the Fund seeks capital appreciation, to the extent
consistent with its primary objective.
In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification for certain liabilities. The Funds maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) is the exclusive reference of authoritative US generally accepted accounting principles (US GAAP) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative US GAAP for SEC registrants. The Funds financial statements are prepared in accordance with US GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies:
Valuation of
investments
The Fund
calculates its net asset value based on the current market value, where
available, for its portfolio of securities. The Fund normally obtains market
values for its securities and other instruments from independent pricing sources
and broker-dealers. Independent pricing sources may use reported last sale
prices, official market closing prices, current market quotations or valuations
from computerized evaluation systems that derive values based on comparable
securities or instruments. An evaluation system incorporates parameters such as
security quality, maturity and coupon, and/or research and evaluations by its
staff, including review of broker-dealer market price quotations, if available,
in determining the valuation of the portfolio securities or instruments.
Securities and other instruments also may be valued based on appraisals derived
from information concerning the security or instrument or similar securities or
instruments received from recognized dealers in those holdings. Securities and
instruments traded in the over-the counter (OTC) market and listed on The
NASDAQ Stock Market, Inc. (NASDAQ) normally are valued at the NASDAQ Official
Closing Price. Other OTC securities are valued at the last bid price on the
valuation date available prior to valuation. Securities and instruments which
are listed on US and foreign stock exchanges normally are valued at the market
closing price, the last sale price on the day the securities are valued or,
lacking any sales on such day, at the last available bid price. In cases where
securities or instruments are traded on more than one exchange, the securities
and instruments are valued on the exchange designated as the primary market by
UBS Global Asset Management (Americas) Inc. (UBS Global AM or the Advisor),
the investment advisor of the Fund. UBS Global AM is an indirect wholly owned
asset management subsidiary of UBS AG, an internationally diversified
organization with headquarters in Zurich and Basel, Switzerland and operations
in many areas of the financial services industry. If a market value is not
readily available from an independent pricing source for a particular security
or instrument, that security or instrument is valued at fair value as determined
in good faith by or under the direction of the Funds Board of Directors (the
Board). Various factors may be reviewed in order to make a good faith
determination of a securitys or instruments fair value. These factors include,
but are not limited to, fundamental analytical data relating to the investment;
the nature and duration of restrictions on disposition of the securities or
instruments; and the evaluation of forces which influence the market in which
the securities or instruments are purchased and sold. Foreign currency exchange
rates are generally determined as of the close of the New York Stock Exchange
(NYSE).
26 |
Global High Income Fund
Inc.
Notes to financial statements
(unaudited)
Certain securities or instruments in which the Fund invests are traded in markets that close before 4:00 p.m., Eastern time. Normally, developments that occur between the close of the foreign markets and 4:00 p.m., Eastern time, will not be reflected in the Funds net asset value. However, if the Fund determines that such developments are so significant that they will materially affect the value of the Funds securities or instruments, the Fund may adjust the previous closing prices to reflect what is believed to be the fair value of these securities or instruments as of 4:00 p.m., Eastern time.
The amortized cost method of valuation, which approximates market value, generally is used to value short-term debt instruments with sixty days or less remaining to maturity, unless the Board determines that this does not represent fair value. Investments in open-end investment companies are valued at the daily closing net asset value of the respective investment company. Pursuant to the Funds use of the practical expedient within ASC Topic 820, investments in non-registered investment companies are also valued at the daily net asset value. All investments quoted in foreign currencies are valued daily in US dollars on the basis of the foreign currency exchange rates prevailing at the time such valuation is determined by the Funds custodian and accounting agent.
Futures contracts are generally valued at the settlement price established each day on the exchange on which they are traded. Forward foreign currency contracts are valued daily using forward exchange rates quoted by independent pricing services.
Swaps are marked-to-market daily based upon values from third party vendors or quotations from market makers to the extent available, and the change in value, if any, is recorded as an unrealized gain or loss on the Statement of assets and liabilities. In the event that market quotations are not readily available or deemed unreliable, the swap is valued at fair value as determined in good faith by or under the direction of the Board (or a committee designated by it).
The Board has delegated to the UBS Global Asset Management Global Valuation Committee (GVC) the responsibility for making fair value determinations with respect to the Funds portfolio holdings. The GVC is comprised of representatives of management, including members of the investment team.
The GVC provides reports to the Board at each quarterly meeting regarding any securities or instruments that have been fair valued, valued pursuant to standing instructions approved by the GVC, or where non-vendor pricing sources had been used to make fair value determinations when sufficient information exists during the prior quarter. Fair valuation determinations are subject to review at least monthly by the GVC during scheduled meetings. Pricing decisions, processes, and controls over fair value determinations are subject to internal and external reviews, including annual internal compliance reviews and periodic internal audit reviews.
The types of securities or instruments for which such fair value pricing may be necessary include, but are not limited to: foreign securities and instruments under some circumstances, as discussed below, securities of an issuer that has entered into a restructuring; securities or instruments whose trading has been halted or suspended; fixed income securities that are in default and for which there is no current market value quotation; and securities or instruments that are restricted as to transfer or resale. The need to fair value the Funds portfolio securities and other instruments may also result from low trading volume in foreign markets or thinly traded domestic securities or instruments, and when a security is subject to a trading limit or collar on the exchange or market on which it is primarily traded reaches the limit up or limit down price and no trading has taken place at that price. Various factors may be reviewed in order to make a good faith determination of a securitys or instruments fair value. These factors include, but are not limited to, fundamental analytical data relating to the investment; the nature and duration of restrictions on disposition of securities or instruments; and the evaluation of forces which influence the market in which the securities or instruments are purchased and sold. Valuing securities and other instruments
27 |
Global High Income Fund
Inc.
Notes to financial statements
(unaudited)
at fair value involves greater reliance on judgment than valuing securities and other instruments that have readily available market quotations. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service.
US GAAP requires disclosure regarding the various inputs that are used in determining the value of the Funds investments. These inputs are summarized into the three broad levels listed below:
Level 1Unadjusted quoted prices in active markets for identical investments.
Level 2Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risk.
Level 3Unobservable inputs inclusive of the Funds own assumptions in determining the fair value of investments.
A fair value hierarchy has been included near the end of the Funds Portfolio of investments.
In January 2013, Accounting Standards Update 2013-01 (ASU 2013-01), Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, replaced Accounting Standards Update 2011-11 (ASU 2011-11), Disclosures about Offsetting Assets and Liabilities. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact, if any, on the Funds financial statements.
The provisions of ASC Topic 815 Derivatives and Hedging (ASC Topic 815) require qualitative disclosures about objectives and strategies for using derivatives, quantitative disclosures about fair value amounts of gains and losses on derivative instruments and disclosures about credit-risk related contingent features in derivative agreements. Since investment companies value their derivatives at fair value and recognize changes in fair value through the Statement of operations, they do not qualify for hedge accounting under ASC Topic 815. Accordingly, even though the Funds investments in derivatives may represent economic hedges, they are considered to be non-hedge transactions for purposes of disclosure under ASC Topic 815. ASC Topic 815 requires that (1) objectives for using derivative instruments be disclosed in terms of underlying risk and accounting designation, (2) the fair values of derivative instruments and their gains and losses be disclosed in a tabular format, and (3) information be disclosed about credit-risk contingent features of derivatives contracts. Details of this disclosure can be found below as well as in the Portfolio of investments. Swap agreements, forward foreign currency contracts, swaptions and options written entered into by the Fund may contain credit-risk related contingent features that could be triggered subject to certain circumstances. Such circumstances include agreed upon net asset value thresholds. If triggered, the derivative counterparty could request additional cash margin and/or terminate the derivative contract. The aggregate fair value of the derivative contracts that are in a net liability position that contain these triggers can be found in the Portfolio of investments. The aggregate fair value of assets that are already posted as collateral as of April 30, 2013 is reflected in the Statement of assets and liabilities. If the applicable credit-risk related contingent features were triggered as of April 30, 2013, the Fund would be required to post additional collateral or may be required to terminate the contracts and settle any amounts outstanding. The volume of derivatives that is presented in the Portfolio of investments of the Fund is consistent with the derivative activity during the period ended April 30, 2013. The Fund may be a seller of protection through credit default swap agreements which are by nature credit-risk contingent (the terms of these agreements can be found within the Portfolio of investments, with further discussion in the Notes to financial statements).
28 |
Global High Income Fund
Inc.
Notes to financial statements
(unaudited)
Disclosure of derivatives by underlying risk for the Fund as of and for the period ended April 30, 2013 is as follows:
Asset derivatives | ||||||||||||||
Interest rate risk |
Credit risk |
Foreign exchange risk |
Total | |||||||||||
Forward contracts1 | $ | | $ | | $ | 2,014,120 | $ | 2,014,120 | ||||||
Futures contracts2 | 178,414 | | | 178,414 | ||||||||||
Options purchased1 | | | 732,081 | 732,081 | ||||||||||
Swap agreements1 | 461,317 | 86,115 | 760,177 | 1,307,609 | ||||||||||
Total value | $ | 639,731 | $ | 86,115 | $ | 3,506,378 | $ | 4,232,224 |
1 Statement of assets and liabilities location: Options purchased are shown within investments in securities of unaffiliated issuers, at value, unrealized appreciation on forward foreign currency contracts and outstanding swap agreements, at value. |
2 Includes cumulative appreciation of futures contracts as reported in the futures contracts table in the Portfolio of investments, but only the unpaid variation margin, if any, is reported within the Statement of assets and liabilities within Due from broker. |
Liability derivatives | ||||||||||||||||
Interest rate risk |
Credit risk |
Foreign exchange risk |
Total | |||||||||||||
Forward contracts1 | $ | | $ | | $ | (925,481 | ) | $ | (925,481 | ) | ||||||
Futures contracts2 | (170,236 | ) | | | (170,236 | ) | ||||||||||
Options written1 | | | (462,478 | ) | (462,478 | ) | ||||||||||
Swap agreements1 | (207,183 | ) | (1,376,548 | ) | (16,822 | ) | (1,600,553 | ) | ||||||||
Total value | $ | (377,419 | ) | $ | (1,376,548 | ) | $ | (1,404,781 | ) | $ | (3,158,748 | ) |
1 Statement of assets and liabilities location: Unrealized depreciation on forward foreign currency contracts, written options, at value and outstanding swap agreements, at value. |
2 Includes cumulative depreciation of futures contracts as reported in the futures contracts table in the Portfolio of investments, but only the unpaid variation margin, if any, is reported within the Statement of assets and liabilities within Due to broker. |
29 |
Global High Income Fund
Inc.
Notes to financial statements
(unaudited)
Activities in derivative instruments during the period ended April 30, 2013 were as follows:
Interest rate risk |
Credit risk |
Foreign exchange risk |
Total | |||||||||||||
Net realized gain (loss)1 | ||||||||||||||||
Forward contracts | $ | | $ | | $ | 552,090 | $ | 552,090 | ||||||||
Futures contracts | 129,723 | | | 129,723 | ||||||||||||
Options purchased3 | | | (1,571,586 | ) | (1,571,586 | ) | ||||||||||
Options written | 3,779 | | 317,627 | 321,406 | ||||||||||||
Swap agreements | 28,993 | (963,659 | ) | (20,468 | ) | (955,134 | ) | |||||||||
Total net realized gain (loss) | $ | 162,495 | $ | (963,659 | ) | $ | (722,337 | ) | $ | (1,523,501 | ) | |||||
Change in net unrealized appreciation/depreciation2 | ||||||||||||||||
Forward contracts | $ | | $ | | $ | (102,286 | ) | $ | (102,286 | ) | ||||||
Futures contracts | (44,613 | ) | | | (44,613 | ) | ||||||||||
Options purchased3 | | | 41,003 | 41,003 | ||||||||||||
Options written | | | 175,051 | 175,051 | ||||||||||||
Swap agreements | 228,361 | 737,349 | 71,621 | 1,037,331 | ||||||||||||
Total change in net unrealized appreciation/depreciation | $ | 183,748 | $ | 737,349 | $ | 185,389 | $ | 1,109,486 |
1 Statement of operations location: Net realized gain (loss) on futures contracts, options written, swap agreements and forward foreign currency contracts. |
2 Statement of operations location: Change in net unrealized appreciation/depreciation on futures contracts, options written, swap agreements and forward foreign currency contracts. |
3 Realized and unrealized gain (loss) is included in net realized gain (loss) from investments and change in net unrealized appreciation/ depreciation on investments. |
Restricted
securities
The Fund may invest in
securities that are subject to legal or contractual restrictions on resale.
These securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered. Disposal of
these securities may involve time-consuming negotiations and expenses, and
prompt sale at an acceptable price may be difficult. Restricted securities are
identified, if any, in the Portfolio of investments and information
regarding them, is included in the Funds Portfolio
footnotes.
Investment transactions
and investment income
Investment
transactions are recorded on the trade date. Realized gains and losses from
investment and foreign exchange transactions are calculated using the identified
cost method. Interest income is recorded on an accrual basis. Discounts are
accreted and premiums are amortized as adjustments to interest income and the
identified cost of investments.
Foreign currency
translation
The Fund uses the foreign
currency exchange rates determined as of the close of regular trading on the
NYSE. For purposes of calculating the US dollar equivalent value of a non-US
dollar denominated obligation, foreign currency amounts are translated into US
dollars on the following basis: (1) market value of investment securities and
other assets and liabilitiesat the exchange rates prevailing at the end of the
Funds fiscal period; and (2) purchases and sales of investment securities and
income and expensesat the rates of exchange prevailing on the respective dates
of such transactions.
Although the net assets and the market value of the Funds portfolio are presented at the foreign exchange rates at the end of the Funds fiscal period, the Fund does not generally isolate the effect of fluctuations in foreign exchange rates from the effect of the changes in market prices of securities. However, the Fund does isolate the effect of
30 |
Global High Income Fund
Inc.
Notes to financial statements
(unaudited)
fluctuations in foreign exchange rates when determining the gain or loss upon the sale or maturity of foreign currency-denominated securities pursuant to US federal income tax regulations. Certain foreign exchange gains and losses included in realized and unrealized gains and losses are included in, or are a reduction of, ordinary income in accordance with US federal income tax regulations.
Forward foreign currency
contracts
The Fund may enter into
forward foreign currency exchange contracts (forward contracts) in connection
with planned purchases or sales of securities or to hedge the US dollar value of
portfolio securities denominated in a particular currency. The Fund may also use
forward contracts in an attempt to enhance income or gains.
The Fund has no specific limitation on the percentage of assets which may be committed to such contracts. The Fund may enter into forward contracts or maintain a net exposure to forward contracts only if (1) the consummation of the contracts would not obligate the Fund to deliver an amount of foreign currency in excess of the value of the position being hedged by such contracts or (2) the Fund identifies cash or liquid securities in an amount not less than the value of its assets committed to the consummation of the forward contracts and not covered as provided in (1) above, as marked-to-market daily.
Risks may arise upon entering into forward contracts from the potential inability of counterparties to meet the terms of their forward contracts and from unanticipated movements in the value of foreign currencies relative to the US dollar.
Fluctuations in the value of forward contracts are recorded for book purposes as unrealized gains or losses by the Fund. Realized gains and losses include net gains and losses recognized by the Fund on contracts which have been sold or matured.
Futures
contracts
The Fund may use financial
futures contracts for hedging purposes and to adjust exposure to US and foreign
fixed income markets in connection with a reallocation of the Funds assets or
to manage the average duration of the Fund. The Fund may also use futures
contracts in an attempt to enhance income or gains. However, imperfect
correlations between futures contracts and the related securities or markets, or
market disruptions, do not normally permit full control of these risks at all
times. Using financial futures contracts involves various market risks,
including interest rate risk. Risks of entering into futures contracts include
the possibility that there may be an illiquid market or that a change in the
value of the contract may not correlate with changes in the value of the
underlying securities. To the extent that market prices move in an unexpected
direction, there is a risk that the Fund will not achieve the anticipated
benefits of the futures contract or may realize a loss.
Upon entering into a financial futures contract, the Fund is required to deliver to a broker an amount of cash and/or liquid securities equal to a certain percentage of the contract amount. This amount is known as the initial margin. Subsequent payments, known as variation margin, are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying financial futures contracts. Such variation margin is recorded as part of Due to or Due from broker for financial statement purposes on a daily basis as an unrealized gain or loss on futures until the financial futures contract is closed or expires, at which time the net gain or loss is reclassified to realized gain or loss on futures.
Swap
agreements
The Fund may engage in
swap agreements, including but not limited to interest rate, currency, total
return, and credit default swap agreements. The Fund expects to enter into these
transactions to preserve a return or spread on a particular investment or to
hedge a portion of the portfolios duration, to protect against any increase in
the price of securities the Fund anticipates purchasing at a later date, to gain
exposure to certain markets in the most economical way possible or in an attempt
to enhance income or gains.
31 |
Global High Income Fund
Inc.
Notes to financial statements
(unaudited)
The Fund may enter into interest rate swap agreements with another party to receive or pay interest (e.g., an exchange of fixed rate payments for floating rate payments) to protect itself from interest rate fluctuations. This type of swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to a specified interest rate(s) for a specified amount. The payment flows are usually netted against each other, with the difference being paid by one party to the other. In addition, the Fund may enter into interest rate cap and floor transactions which involve an agreement between two parties in which one party agrees to make payments to the other when a designated market interest rate goes above (in the case of a cap) or below (in the case of a floor) a designated level on pre-determined dates or during a specified period. Interest rate swap agreements are subject to general market risk, liquidity risk, counterparty risk and interest rate risk.
The Fund may enter into currency swap agreements with another party to receive or pay amounts based on changes in currency exchange rates in order to protect itself from or take advantage of exchange rate fluctuations. The Fund utilizes currency swaps to earn income and enhance returns as well as to manage the risk profile of the Fund. This type of swap is an agreement that obligates two parties to exchange a series of cash flows at specified intervals based upon or calculated by reference to a specified currency exchange rate(s) for a specified amount. Currency swap agreements are subject to general market risk, liquidity risk, counterparty risk, foreign exchange risk and interest rate risk.
Credit default swap agreements involve commitments to make or receive payments in the event of a default or other credit event of a referenced security. As a buyer, the Fund would make periodic payments to the counterparty, and the Fund would receive payments only upon the occurrence of a credit event. If no credit event occurs, the Fund will lose its periodic stream of payments over the term of the contract. However, if a credit event does occur, the Fund typically would receive full notional value for a reference obligation that may have little or no value. As a seller, the Fund would receive periodic payments from the counterparty, and the Fund would make payments only upon the occurrence of a credit event. If no credit event occurs, the Fund will retain the periodic stream of payments it received over the term of the contract. However, if a credit event occurs, the Fund will pay full notional value for a reference obligation that may have little or no value. Credit default swaps may involve greater risks than if the Fund had invested in the reference obligation directly and are subject to general market risk, liquidity risk, counterparty risk and credit risk.
Credit default swap agreements on sovereign issues of an emerging market country involve one party making a stream of payments to another party in exchange for the right to receive a specified return in the event of a default or other credit event. If a credit event occurs and cash settlement is not elected, a variety of other obligations may be delivered in lieu of the specific referenced obligation. The ability to deliver other obligations may result in delivery of a security with a value other than had been anticipated (such as a partys right to choose the deliverable obligation with the lowest value following a credit event). The Fund may use credit default swaps on corporate issues or sovereign issues of an emerging market country to provide a measure of protection against defaults of the issuers (i.e., to reduce risk where the Fund owns or has exposure to the referenced obligation) or to take an active long or short position with respect to the likelihood of a particular issuers default.
The maximum potential amount of future payments (undiscounted) that the Fund as a seller of protection could be required to make under a credit default swap agreement would be an amount equal to the notional amount of the agreement. Notional amounts of all credit default swap agreements outstanding as of April 30, 2013 for which the Fund is the seller of protection are disclosed under the section Credit default swaps on sovereign issuessell protection in the Notes to portfolio of investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into, if any, by the Fund for the same referenced entity or entities.
32 |
Global High Income Fund
Inc.
Notes to financial statements
(unaudited)
The use of swap agreements involves investment techniques and risks different from those associated with ordinary portfolio security transactions. If UBS Global AM is incorrect in its forecast of market values, interest rates and other applicable factors, the investment performance of the Fund will be less favorable than it would have been if this investment technique was never used. Swap agreements do not involve the delivery of securities and are subject to counterparty risk. If the other party to a swap agreement defaults and fails to consummate the transaction, the Funds risk of loss will consist of the net amount of interest or other payments that the Fund is contractually entitled to receive. Therefore, the Fund would consider the creditworthiness of the counterparty to a swap agreement in evaluating potential credit risk.
The Fund accrues for interim payments on swap agreements on a daily basis, with the net amount recorded within unrealized appreciation/depreciation of swap agreements on the Statement of assets and liabilities. Once interim payments are settled in cash, the net amount is recorded as realized gain/loss on swap agreements, in addition to realized gain/loss recorded upon the termination of swap agreements on the Statement of operations. Fluctuations in the value of swap agreements are recorded for financial statement purposes as unrealized appreciation or depreciation on swap agreements.
Structured
notes
The Fund may invest in
structured notes whose values are based on the price movements of a referenced
security or index. The value of these structured notes will rise and fall in
response to changes in the referenced security or index. On the maturity date of
each structured note, the Fund will receive a payment from a counterparty based
on the value of the referenced security or index (notional amount multiplied by
the price of the referenced security or index) and record a realized gain or
loss.
Structured notes may present a greater degree of market risk than many types of securities and may be more volatile and less liquid than less complex securities. Structured notes are also subject to the risk that the issuer of the structured notes may fail to perform its contractual obligations.
Option
writing
The Fund may write (sell) put
and call options on foreign or US securities, indices, foreign currencies and
interest rate swaps (commonly referred to as swaptions), in order to gain
exposure to or protect against changes in the markets. When the Fund writes a
call or a put option, an amount equal to the premium received by the Fund is
included in the Funds Statement of assets and liabilities as an asset and as an
equivalent liability. The amount of the liability is subsequently
marked-to-market to reflect the current market value of the option written. If
an option which the Fund has written either expires on its stipulated expiration
date or the Fund enters into a closing purchase transaction, the Fund realizes a
gain (or loss if the cost of a closing purchase transaction exceeds the premium
received when the option was written) without regard to any unrealized gain or
loss on the underlying security or derivative instrument, and the liability
related to such option is extinguished. If a call option which the Fund has
written is exercised, the Fund recognizes a realized gain or loss (long-term or
short-term, depending on the holding period of the underlying security) from the
sale of the underlying security or derivative instrument and the proceeds from
the sale are increased by the premium originally received. If a put option which
the Fund has written is exercised, the amount of the premium originally received
reduces the cost of the security or derivative instrument which the Fund
purchases upon exercise of the option.
In writing an option, the Fund bears the market risk of an unfavorable change in the price of the derivative instrument, security, index or currency underlying the written option. Exercise of an option written by the Fund could result in the Fund selling or buying a derivative instrument, security or currency at a price different from current market value.
33 |
Global High Income Fund
Inc.
Notes to financial statements
(unaudited)
Purchased
options
The Fund may purchase put and
call options on foreign or US securities, indices, foreign currencies and
interest rate swaps (commonly referred to as swaptions), as well as exchange
listed call options on particular market segment indices to achieve temporary
exposure to a specific security, currency, industry or geographic region.
Purchasing call options tends to increase exposure to the underlying instrument.
Purchasing put options tends to decrease exposure to the underlying instrument.
The Fund pays a premium which is included in the Statement of assets and
liabilities as an investment and subsequently marked-to-market to reflect the
current value of the option. Premiums paid for purchasing options which expire
are treated as realized losses. The risk associated with purchasing put and call
options is limited to the premium paid. Premiums paid for purchasing options
which are exercised or closed are added to the amounts paid or offset against
the proceeds on the underlying futures, security or currency transaction to
determine the realized gain or loss.
Dividends and
distributions
Dividends and
distributions to shareholders are recorded on the ex-distribution date. The
amount of dividends from net investment income and distributions from net
realized capital gains and/or return of capital are determined in accordance
with income tax regulations, which may differ from US GAAP. These book/tax
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the capital accounts based on their federal tax-basis treatment;
temporary differences do not require reclassification.
Concentration of
risk
Investing in securities of
foreign issuers and currency transactions may involve certain considerations and
risks not typically associated with investments in US securities. These risks
include revaluation of currencies, adverse fluctuations in foreign currency
values and possible adverse political, social and economic developments,
including those particular to a specific industry, country or region, which
could cause the securities and their markets to be less liquid and prices more
volatile than those of comparable US companies and US government securities.
These risks are greater with respect to securities of issuers located in
emerging market countries in which the Fund invests. The ability of the issuers
of debt securities held by the Fund to meet their obligations may be affected by
economic and political developments particular to a specific industry, country,
state or region.
Investment advisor and
administrator and other transactions with related entities
The Funds Board has approved an investment advisory and
administration contract (Advisory Contract) with UBS Global AM. In accordance
with the Advisory Contract, the Fund pays UBS Global AM an investment advisory
and administration fee, which is accrued weekly and paid monthly, at the annual
rate of 1.25% of the Funds average weekly net assets. Since August 1, 2005, UBS
Global AM has contractually agreed to waive compensation otherwise payable to it
to reduce the fee it receives under the Advisory Contract so that it is paid at
the annual rate of 1.25% of the Funds average weekly net assets on assets up to
$200 million, and at the annual rate of 1.00% of the Funds average weekly net
assets on assets above $200 million. This fee reduction breakpoint continues
indefinitely unless the Board agrees to any change. Additionally, effective
August 1, 2012, through July 31, 2013, UBS Global AM has agreed voluntarily to
waive compensation otherwise payable to it to reduce the fee it receives under
the Advisory Contract so that it is paid at the following annual
rates:
Average weekly net assets | Advisory fee | ||
Up to $200 million | 1.10 | % | |
Above $200 million | 1.00 | % |
At April 30, 2013, the Fund owed UBS Global AM $255,970 which is composed of $299,390 of investment advisory and administration fees less fees waived of $43,420. For the six months ended April 30, 2013, UBS Global AM waived $263,366 of investment advisory and administration fees from the Fund.
34 |
Global High Income Fund
Inc.
Notes to financial statements
(unaudited)
Additional
information regarding compensation to affiliate of a board
member
Professor Meyer
Feldberg serves as a senior advisor to Morgan Stanley, a financial services firm
with which the Fund may conduct transactions, resulting in him being an
interested director of the Fund. The Fund has been informed that Professor
Feldbergs role at Morgan Stanley does not involve matters directly affecting
any UBS funds. Fund transactions are executed through Morgan Stanley based on
that firms ability to provide best execution of the transactions. During the
six months ended April 30, 2013, the Fund purchased and sold certain securities
(e.g., fixed income securities) in principal trades with Morgan Stanley having
an aggregate value of $1,139,718. Morgan Stanley received compensation in
connection with these trades, which may have been in the form of a mark-up or
mark-down of the price of the securities, a fee from the issuer for
maintaining a commercial paper program, or some other form of compensation.
Although the precise amount of this compensation is not generally known by UBS
Global AM, UBS Global AM believes that under normal circumstances it represents
a small portion of the total value of the transactions.
Securities
lending
The Fund may lend
securities up to 33⅓% of its total assets to qualified broker-dealers or
institutional investors. The loans are secured at all times by cash, cash
equivalents or US government securities in an amount at least equal to 102% of
the market value of the securities loaned with respect to domestic securities
and 105% of the market value of the securities loaned with respect to foreign
securities, plus accrued interest and dividends, determined on a daily basis and
adjusted accordingly.
The Fund will regain ownership of loaned securities to exercise certain beneficial rights; however, the Fund may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower fail financially. The Fund receives compensation for lending its securities from interest or dividends earned on the cash, cash equivalents or US government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. The Fund did not lend any securities during the six months ended April 30, 2013.
Capital
stock
There are 100,000,000
shares of $0.001 par value common stock authorized and 21,591,836 shares
outstanding at April 30, 2013. For the six months ended April 30, 2013 and for
the year ended October 31, 2012, there were no transactions involving common
stock.
Purchases and
sales of securities
For the
six months ended April 30, 2013, aggregate purchases and sales of portfolio
securities, excluding short-term securities, were $76,205,935 and $69,268,692,
respectively.
Federal tax
status
It is the Funds policy
to comply with all requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute substantially all of its
taxable income to its shareholders. In addition, by distributing during each
calendar year substantially all of its net investment income, net realized
capital gains and certain other amounts, if any, the Fund intends not to be
subject to a federal excise tax. Accordingly, no federal income tax provision
was required.
The tax character of distributions paid during the year ended October 31, 2012 was as follows:
Distributions paid from: | 2012 | |
Ordinary income | $ | 15,338,633 |
Net long-term capital gains | 6,013,534 | |
Total distributions paid | $ | 21,352,167 |
35 |
Global High Income Fund
Inc.
Notes to financial statements
(unaudited)
The tax character of distributions paid and components of accumulated earnings (deficit) on a tax basis for the current fiscal year will be determined after the Funds fiscal year ending October 31, 2013.
Under the Regulated Investment Company Modernization Act of 2010 (the Act), net capital losses recognized by the Fund after December 31, 2010 may be carried forward indefinitely, and retain their character as short term and/or long term losses. The Act requires that post-enactment net capital losses be used before pre-enactment net capital losses.
At October 31, 2012 the Fund had no pre-enactment capital loss carryforwards for federal income tax purposes available to offset future capital gains.
As of and during the period ended April 30, 2013, the Fund did not have any liabilities for any uncertain tax positions. The Fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of operations. During the period, the Fund did not incur any interest or penalties.
Each of the tax years in the four year period ended October 31, 2012 remains subject to examination by the Internal Revenue Service and state taxing authorities.
36 |
Global High Income Fund Inc.
General information (unaudited)
The
Fund
Global High Income Fund
Inc. (the Fund) is a non-diversified, closed-end management investment company
whose shares trade on the New York Stock Exchange (NYSE). The Funds primary
investment objective is to achieve a high level of current income. As a
secondary objective, the Fund seeks capital appreciation, to the extent
consistent with its primary objective. There can be no assurance that the Funds
investment objective will be achieved. The Funds investment advisor and
administrator is UBS Global Asset Management (Americas) Inc. (UBS Global
AM).
Shareholder
information
The Funds NYSE
trading symbol is GHI. Net asset value and market price information as well as
other information about the Fund is updated each business day on UBSs web site
at the following internet address:
http://globalam-us.ubs.com/corpweb/closedendedfunds.do.
Shareholder
meeting information
An annual
meeting of shareholders of the Fund was held on February 21, 2013. At the
meeting, the two nominees as Class III directors, namely Richard R. Burt and
Meyer Feldberg, were elected to serve as board members for three year terms and
until their successors are duly elected and qualified or until they retire,
resign or are earlier removed. The shares were voted as indicated
below:
To vote for or withhold authority in the election of: | Shares voted for |
Shares withhold authority | |||
Richard R. Burt | 18,963,223 | 956,241 | |||
Meyer Feldberg | 18,893,806 | 1,025,657 |
The following persons terms of office as directors also continued after the annual meeting given that they are in other director classes: Richard Q. Armstrong, Alan S. Bernikow, Bernard H. Garil, Barry M. Mandinach and Heather R. Higgins. The Fund is not aware of any broker non-votes. (Broker non-votes are shares held in street name for which the broker indicates that instructions have not been received from the beneficial owners or other persons entitled to vote and for which the broker does not have discretionary voting authority.)
Quarterly Form
N-Q portfolio schedule
The
Fund will file its complete schedule of portfolio holdings with the Securities
and Exchange Commission (SEC) for the first and third quarters of each fiscal
year on Form N-Q. The Funds Forms N-Q are available on the SECs Web site at
http://www.sec.gov. The Funds Forms N-Q may be reviewed and copied at the SECs
Public Reference Room in Washington, D.C. Information on the operation of the
SECs Public Reference Room may be obtained by calling 1-202-551-8090.
Additionally, you may obtain copies of Form N-Q from the Fund upon request by
calling 1 888-793 8637.
Proxy voting
policies, procedures and record
You may obtain a description of the Funds (1) proxy voting policies (2)
proxy voting procedures, and (3) information regarding how the Fund voted any
proxies related to portfolio securities during the most recent 12-month period
ended June 30 for which an SEC filing has been made, without charge, upon
request by contacting the Fund directly at 1-888-793 8637, online on UBSs Web
site: http://www.ubs.com/us/en/asset_management/individual_investors/
closed_end_funds.html or on the EDGAR Database on the SECs Web site
(http://www.sec.gov).
Dividend
reinvestment plan
The Funds
Board has established a Dividend Reinvestment Plan (the Plan) under which all
shareholders whose shares are registered in their own names, or in the name of
UBS Financial Services Inc. or its nominee, will have all dividends and other
distributions on their shares of common stock automatically reinvested in
additional shares,
37 |
Global High Income Fund Inc.
General information (unaudited)
unless such shareholders elect to receive cash. Shareholders who elect to hold their shares in the name of another broker or nominee should contact such broker or nominee to determine whether, or how, they may participate in the Plan.
The ability of such shareholders to participate in the Plan may change if their shares are transferred into the name of another broker or nominee.
A shareholder may elect not to participate in the Plan or may terminate participation in the Plan at any time without penalty, and shareholders who have previously terminated participation in the Plan may rejoin it at any time. Changes in elections must be made in writing to the Funds transfer agent and should include the shareholders name and address as they appear on that share certificate or in the transfer agents records.
An election to terminate participation in the Plan, until such election is changed, will be deemed an election by a shareholder to take all subsequent distributions in cash. An election will be effective only for distributions declared and having a record date at least ten days after the date on which the election is received.
Additional shares of common stock acquired under the Plan will be purchased in the open market, on the NYSE or otherwise, at prices that may be higher or lower than the net asset value per share at the time of the purchase. Investors should consider whether continued participation in the dividend reinvestment plan is appropriate for them when the Funds market price exceeds its net asset value; a portion of a dividend/distribution may represent a return of capital, which would be reinvested in the Fund at a premium to net asset value. The number of shares of common stock purchased with each dividend/distribution will be equal to the result obtained by dividing the amount of the dividend/distribution payable to a particular shareholder by the average price per share (including applicable brokerage commissions) that the transfer agent was able to obtain in the open market. The Fund will not issue any new shares in connection with the Plan. There currently is no charge to participants for reinvesting dividends or other distributions. The transfer agents fees for handling the reinvestment of distributions are paid by the Fund. However, each participant pays a pro rata share of brokerage commissions incurred with respect to the transfer agents open market purchases of common stock in connection with the reinvestment of distributions. The automatic reinvestment of dividends and other distributions in shares of common stock does not relieve participants of any income tax that may be payable on such distributions.
Experience under the Plan may indicate that changes are desirable. Accordingly, the Fund reserves the right to amend or terminate the Plan with respect to any dividend or other distribution if notice of the change is sent to Plan participants at least 30 days before the record date for such distribution. The Plan also may be amended or terminated by the transfer agent by at least 30 days written notice to all Plan participants. Additional information regarding the Plan may be obtained from, and all correspondence concerning the Plan should be directed to, the transfer agent at BNY Mellon Shareowner Services, P.O. Box 358035, Pittsburgh, PA 15252-8035. For further information regarding the Plan, you may also contact the transfer agent directly at 1-866-352 5528.
Distribution
policy
The Funds Board
adopted a managed distribution policy in December 1999, which was revised (1)
effective June 2005, (2) effective August 2009 and (3) effective June 2012.
Pursuant to the policy as in effect from December 1999 through early May 2005,
the Fund made regular monthly distributions at an annualized rate equal to 11%
of the Funds net asset value, as determined as of the last trading day during
the first week of that month (usually a Friday unless the NYSE is closed that
Friday). The Board approved reducing the annualized rate for distribution
pursuant to the policy from 11% to 9% effective beginning with the June 2005
monthly distribution. The Board approved a further reduction in the annualized
rate for distributions pursuant to the policy from 9% to 8% in July 2009,
effective beginning with the August 2009 monthly distribution. The Board
approved a subsequent reduction
38 |