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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number: 811-21938

 

Voya Natural Resources 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, Scottsdale, AZ 85258

(Name and address of agent for service)

 

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

 

Date of fiscal year end: February 28

 

Date of reporting period: May 31, 2014

 

 
 

 

Item 1. Schedule of Investments

 

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

 

Voya Natural Resources Equity Income Fund

 

The schedules are not audited.

 

 
 

  

Voya Natural Resources Equity Income Fund PORTFOLIO OF INVESTMENTS
as of May 31, 2014 (Unaudited)

 

Shares        Value  Percentage
of Net
Assets
COMMON STOCK: 99.9%
        Energy: 86.5%          
 100,313      Anadarko Petroleum Corp.  $10,318,195    3.7 
 30,290      Apache Corp.   2,823,634    1.0 
 86,486      Baker Hughes, Inc.   6,098,993    2.2 
 54,478      Basic Energy Services, Inc.   1,481,802    0.5 
 21,212   @  Baytex Energy Corp.   886,237    0.3 
 228,083      Canadian Natural Resources Ltd.   9,276,136    3.3 
 24,610      Carrizo Oil & Gas, Inc.   1,414,091    0.5 
 31,320      Cenovus Energy, Inc.   933,023    0.3 
 151,092      Chevron Corp.   18,552,587    6.7 
 62,830      Cloud Peak Energy, Inc.   1,160,470    0.4 
 205,753      ConocoPhillips   16,447,895    5.9 
 34,416      Consol Energy, Inc.   1,520,155    0.6 
 17,940      CVR Energy, Inc.   844,256    0.3 
 39,224      Devon Energy Corp.   2,898,654    1.0 
 90,288      EnCana Corp.   2,104,613    0.8 
 76,710      Enerplus Corp.   1,740,550    0.6 
 104,804      EOG Resources, Inc.   11,088,263    4.0 
 34,130      EPL Oil & Gas, Inc.   1,293,868    0.5 
 7,906      EQT Corp.   844,993    0.3 
 227,567      ExxonMobil Corp.   22,877,310    8.2 
 166,494      Halliburton Co.   10,762,172    3.9 
 74,402      Hess Corp.   6,792,903    2.5 
 60,477      Kinder Morgan, Inc.   2,019,327    0.7 
 38,816      Laredo Petroleum, Inc.   1,074,039    0.4 
 36,638      Marathon Oil Corp.   1,343,149    0.5 
 15,897      Marathon Petroleum Corp.   1,421,033    0.5 
 38,958      Nabors Industries Ltd.   1,021,868    0.4 
 31,115      National Oilwell Varco, Inc.   2,547,385    0.9 
 49,145   @  Newfield Exploration Co.   1,792,810    0.6 
 20,119      Noble Energy, Inc.   1,449,976    0.5 
 163,680   @  Nordic American Tankers Ltd.   1,338,902    0.5 
 141,162      Occidental Petroleum Corp.   14,072,440    5.1 
 123,760      Patterson-UTI Energy, Inc.   4,095,218    1.5 
 131,917      Petroquest Energy, Inc.   807,332    0.3 
 86,827      Phillips 66   7,362,061    2.7 
 9,237      Pioneer Natural Resources Co.   1,941,248    0.7 
 126,779   @  Precision Drilling Corp.   1,643,056    0.6 
 58,896      Range Resources Corp.   5,474,383    2.0 
 26,293      Royal Dutch Shell PLC - Class A ADR   2,066,630    0.7 
 207,817      Schlumberger Ltd.   21,621,281    7.8 
 26,641      SemGroup Corp.   1,809,990    0.7 
 15,030   @  Southwestern Energy Co.   683,414    0.3 
 89,591      Spectra Energy Corp.   3,635,603    1.3 
 112,068      Statoil ASA ADR   3,418,074    1.2 
 142,625      Suncor Energy, Inc.   5,495,341    2.0 
 128,419      Superior Energy Services   4,262,227    1.5 
 26,250   @  Unit Corp.   1,667,400    0.6 
 133,148      Valero Energy Corp.   7,462,945    2.7 
 24,166      Western Refining, Inc.   991,289    0.4 
 23,258   @  Whiting Petroleum Corp.   1,671,087    0.6 
 54,594      Williams Cos., Inc.   2,563,734    0.9 
 23,910      World Fuel Services Corp.   1,108,468    0.4 
            240,022,510    86.5 
                   
        Materials: 13.4%          
 48,912      Alcoa, Inc.   665,692    0.2 
 46,990   @  Barrick Gold Corp.   757,009    0.3 
 89,918   @  Crown Holdings, Inc.   4,392,494    1.6 
 14,781      Eagle Materials, Inc.   1,285,504    0.5 
 234,578      Freeport-McMoRan Copper & Gold, Inc.   7,987,381    2.9 
 81,884      GoldCorp, Inc.   1,913,629    0.7 
 106,241      International Paper Co.   5,060,259    1.8 
 5,190      Martin Marietta Materials, Inc.   637,332    0.2 
 2,000   @  PAN American Silver Corp.   24,740    0.0 
 42,945   @  Randgold Resources Ltd. ADR   3,174,924    1.1 
 62,695      Rio Tinto PLC ADR   3,221,269    1.2 
 39,043      Rock-Tenn Co.   3,944,514    1.4 
 184,207      Teck Cominco Ltd. - Class B   4,109,658    1.5 
            37,174,405    13.4 
                   
     Total Common Stock           
     (Cost $231,165,910) 277,196,915    99.9  

 

SHORT-TERM INVESTMENTS: 0.9%            
   Mutual Funds: 0.9%          
 2,590,000     BlackRock Liquidity Funds, TempFund, Institutional Class, 0.030%††        
        (Cost $2,590,000)   2,590,000    0.9 
                   
     Total Short-Term Investments          
     (Cost $2,590,000)   2,590,000    0.9 
                   
     Total Investments in Securities
(Cost $233,755,910)		  $279,786,915    100.8 
     Liabilities in Excess of Other Assets   (2,197,246)    (0.8)
     Net Assets  $277,589,669    100.0 

 

†† Rate shown is the 7-day yield as of May 31, 2014.
@ Non-income producing security
   
 ADR American Depositary Receipt

 

 
 

 

Voya Natural Resources Equity Income
Fund		 PORTFOLIO OF INVESTMENTS
as of May 31, 2014 (Unaudited) (Continued)

  

Cost for federal income tax purposes is $233,769,990.

 

Net unrealized appreciation consists of:

 

Gross Unrealized Appreciation  $50,942,246 
Gross Unrealized Depreciation   (4,925,321)
      
Net Unrealized Appreciation  $46,016,925 

 

Fair Value Measurements

The following is a summary of the fair valuations according to the inputs used as of May 31, 2014 in valuing the assets and liabilities:

 

   Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)		   Significant
Other
Observable
Inputs 
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Fair Value
at
May 31, 2014		 
Asset Table                    
Investments, at fair value                    
Common Stock*  $277,196,915   $–   $–   $277,196,915 
Short-Term Investments   2,590,000    –    –    2,590,000 
Total Investments, at fair value  $279,786,915   $–   $–   $279,786,915 
Liabilities Table                    
Other Financial Instruments+                    
Written Options  $–   $(1,226,723)  $–   $(1,226,723)
Total Liabilities  $–   $(1,226,723)  $–   $(1,226,723)

 

+ 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.
* For further breakdown of Common Stock by sector, please refer to the Portfolio of Investments.

 

Voya Natural Resources Equity Income Fund Written OTC Options on May 31, 2014:

 

 Number of
Contracts		   Counterparty  Description  Exercise
Price		   Expiration
Date		  Premiums
Received		   Fair Value 
Options on Indices
 1,212,099   Goldman Sachs & Co.  Call on Energy Select Sector SPDR® Fund   95.270   USD   06/20/14  $713,199   $(1,031,359)
 372,758   Goldman Sachs & Co.  Call on Market Vectors Gold Miners ETF   23.890   USD   06/20/14   179,856    (51,886)
 301,879   JPMorgan Chase & Co.  Call on Materials Select Sector SPDR® Fund   48.860   USD   06/20/14   69,402    (143,478)
        Total Written OTC Options  $962,457   $(1,226,723)

 

 
 

 

Voya Natural Resources Equity Income
Fund		 PORTFOLIO OF INVESTMENTS
as of May 31, 2014 (Unaudited) (Continued)

 

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

 

The fair value of derivative instruments as of May 31, 2014 was as follows:

 

Derivatives not accounted for as hedging instruments

 

    Fair Value
Liability Derivatives  Instrument Type   
       
Equity contracts  Written options  $1,226,723 
Total Liability Derivatives     $1,226,723 

  

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 at May 31, 2014:

 

   Goldman Sachs & Co.   JPMorgan Chase & Co.   Totals 
Liabilities:            
Written options  $1,083,245   $143,478   $1,226,723 
Total Liabilities  $1,083,245   $143,478   $1,226,723 
                
Net OTC derivative instruments by counterparty, at fair value  $(1,083,245)  $(143,478)   (1,226,723)
                
Total collateral pledged by the Fund/(Received from counterparty)  $-   $-   $- 
                
Net Exposure(1)  $(1,083,245)  $(143,478)  $(1,226,723)

 

(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 Natural Resources Equity Income Fund  
   
By /s/ Shaun P. Mathews  
  Shaun P. Mathews  
  President and Chief Executive Officer  
     
Date: July 24, 2014  

 

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

 

By /s/ Shaun P. Mathews  
  Shaun P. Mathews  
  President and Chief Executive Officer  
     
Date: July 24, 2014  
     
By /s/ Todd Modic  
  Todd Modic  
  Senior Vice President and Chief Financial Officer  
     
Date: July 24, 2014