UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number: 811-22004

 

Voya Asia Pacific High Dividend Equity Income Fund

(Exact name of registrant as specified in charter)

 

7337 East Doubletree Ranch Rd., Suite 100, Scottsdale, AZ 85258

(Address of principal executive offices) (Zip code)

 

Huey P. Falgout, Jr., 7337 East Doubletree Ranch Road, Suite 100, Scottsdale, AZ 85258

(Name and address of agent for service)

 

Registrant's telephone number, including area code: 1-800-992-0180

 

Date of fiscal year end: February 28

 

Date of reporting period: November 30, 2015

 

 

Item 1. Schedule of Investments

 

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

 

Voya Asia Pacific High Dividend Equity Income Fund

 

The schedules are not audited.

 

  

Voya Asia Pacific High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS as of November 30, 2015 (Unaudited)

  

 

  

Voya Asia Pacific High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS as of November 30, 2015 (Unaudited) (Continued)

 

  

Voya Asia Pacific High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS as of November 30, 2015 (Unaudited) (Continued)

 

Fair Value Measurements

The following is a summary of the fair valuations according to the inputs used as of November 30, 2015 in valuing the assets and liabilities:⁽¹⁾

 

		Quoted Prices in Active Markets for Identical Investments (Level 1)				Significant Other Observable Inputs# (Level 2)				Significant Unobservable Inputs (Level 3)				Fair Value at November 30, 2015
Asset Table
Investments, at fair value
Common Stock
Australia		$	–			$	27,900,117			$	–			$	27,900,117
China			–				31,907,213				1,750,360				33,657,573
Hong Kong			–				10,569,203				–				10,569,203
India			–				11,160,459				–				11,160,459
Indonesia			–				1,938,043				–				1,938,043
Macau			–				1,567,436				–				1,567,436
Malaysia			1,185,283				3,068,155				–				4,253,438
Singapore			–				1,605,025				–				1,605,025
South Korea			–				16,985,847				–				16,985,847
Taiwan			–				13,106,800				–				13,106,800
Thailand			–				1,254,570				–				1,254,570
United Kingdom			–				1,645,797				–				1,645,797
Total Common Stock			1,185,283				122,708,665				1,750,360				125,644,308
Preferred Stock			–				3,118,886				–				3,118,886
Rights			5,222				8,691				–				13,913
Total Investments, at fair value		$	1,190,505			$	125,836,242			$	1,750,360			$	128,777,107
Liabilities Table
Other Financial Instruments+
Written Options		$	–			$	(103,838	)		$	–			$	(103,838	)
Total Liabilities		$	–			$	(103,838	)		$	–			$	(103,838	)

   

(1)	For the period ended November 30, 2015, as a result of the fair value pricing procedures for international equities utilized by the Fund, certain securities have transferred in and out of Level 1 and Level 2 measurements during the year. The Fund's policy is to recognize transfers between levels at the beginning of the reporting period. At November 30, 2015, securities valued at $2,409,920 were transferred from Level 2 to Level 1 within the fair value hierarchy. In addition, securities valued at $2,049,415 were transferred from Level 2 to Level 3 due to significant unobservable inputs.
+	Other Financial Instruments are derivatives not reflected in the portfolio of investments and may include open forward foreign currency contracts, futures, centrally cleared swaps, OTC swaps and written options. Forward foreign currency contracts, futures and centrally cleared swaps are valued at the unrealized gain (loss) on the instrument.  OTC swaps and written options are valued at the fair value of the instrument.
#	The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a portion of the Fund's investments are categorized as Level 2 investments.

 

The following table presents additional information about valuation techniques and inputs used for investments that are measured at fair value and categorized within Level 3 at November 30, 2015.

 

Investments, at fair value

Fair Value at November 30, 2015

Valuation Technique(s)

Unobservable Inputs

Input Values

Common Stock

$

1,750,360

Proxy Pricing

Base price

5.68

%

 

The following is a reconciliation of the fair valuations using significant unobservable inputs (Level 3) for the Fund's assets and liabilities during the period ended November 30, 2015:

 

		Beginning Balance												Accrued Discounts/				Total Realized				*Net Change in Unrealized Appreciation/				Transfers Into				Transfers Out of				Ending Balance
		2/28/2015				Purchases				Sales				(Premiums)				Gain/(Loss)				(Depreciation)				Level 3				Level 3				11/30/2015
Asset Table
Investments, at fair value
Common Stock		$	-			$	-			$	-			$	-			$	-			$	(299,055	)		$	2,049,415			$	-			$	1,750,360
Total Investments, at value		$	-			$	-			$	-			$	-			$	-			$	(299,055	)		$	2,049,415			$	-			$	1,750,360

 

* As of November 30, 2015  net change in unrealized appreciation (depreciation) on Level 3 securities still held at period end and included in the change in net assets was $(299,055).

 

 

At November 30, 2015, the following over-the-counter written options were outstanding for Voya Asia Pacific High Dividend Equity Income Fund:

 

Number of Contracts				Counterparty		Description		Exercise Price			Expiration Date		Premiums Received				Fair Value
Options on Indices
	3,500			Deutsche Bank AG		Call on S&P/ASX 200 Index			5,159.475 AUD		12/03/15		$	262,638			$	(97,249	)
	2,700			Deutsche Bank AG		Call on Hang Seng Index			22,789.390 HKD		12/03/15			157,103				(5,588	)
	32,700,000			Deutsche Bank AG		Call on Korea Stock Exchange KOSPI 200 Index			251.646 KRW		12/03/15			97,761				(861	)
	22,800			Deutsche Bank AG		Call on Taiwan Stock Exchange Weighted Index			8,842.577 TWD		12/03/15			98,342				(140	)
				Total Written OTC Options									$	615,844			$	(103,838	)

 

  

Voya Asia Pacific High Dividend Equity Income Fund

PORTFOLIO OF INVESTMENTS as of November 30, 2015 (Unaudited) (Continued)

 

A summary of derivative instruments by primary risk exposure is outlined in the following tables.

 

The fair value of derivative instruments as of November 30, 2015 was as follows:

 

		Instrument Type		Fair Value
Derivatives not accounted for as hedging instruments
Liability Derivatives
Equity contracts		Written options		$	103,838
Total Liability Derivatives				$	103,838

 

The following is a summary by counterparty of the fair value of OTC derivative instruments subject to Master Netting Agreements and collateral pledged (received), if any, at November 30, 2015:

 

		Deutsche Bank AG
Liabilities:
Written options		$	103,838
Total Liabilities		$	103,838
Net OTC derivative instruments by counterparty, at fair value		$	(103,838	)
Total collateral pledged by the Fund/(Received from counterparty)		$	-
Net Exposure(1)		$	(103,838	)

 

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

 

  

Item 2. Controls and Procedures.

 

(a)

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

 

(b)

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

 

Item 3. Exhibits.

 

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

 

 

SIGNATURES

 

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

 

(Registrant): Voya Asia Pacific High Dividend Equity Income Fund

 

By	/s/ Shaun P. Mathews
	Shaun P. Mathews
	President and Chief Executive Officer
Date:	January 22, 2016

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By	/s/ Shaun P. Mathews
	Shaun P. Mathews
	President and Chief Executive Officer
Date:	January 22, 2016
By	/s/ Todd Modic
	Todd Modic
	Senior Vice President and Chief Financial Officer
Date:	January 22, 2016