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, Suite 100, Scottsdale, AZ 85258

(Name and address of agent for service)

 

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

 

Date of fiscal year end: February 28

 

Date of reporting period: May 31, 2016

  

 

 

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, 2016 (Unaudited)

 

 

 

Voya Natural Resources Equity Income Fund

PORTFOLIO OF INVESTMENTS as of May 31, 2016 (Unaudited) (Continued)

 

Fair Value Measurements

The following is a summary of the fair valuations according to the inputs used as of May 31, 2016 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, 2016
Asset Table
Investments, at fair value
Common Stock*		$	154,019,285			$	–			$	–			$	154,019,285
Short-Term Investments			1,997,000				–				–				1,997,000
Total Investments, at fair value		$	156,016,285			$	–			$	–			$	156,016,285
Liabilities Table
Other Financial Instruments+
Written Options		$	–			$	(877,449	)		$	–			$	(877,449	)
Total Liabilities		$	–			$	(877,449	)		$	–			$	(877,449	)

 

 

Voya Natural Resources Equity Income Fund

PORTFOLIO OF INVESTMENTS as of May 31, 2016 (Unaudited) (Continued)

 

+

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.

 

At May 31, 2016, the following over-the-counter written options were outstanding for Voya Natural Resources Equity Income Fund:

 

Number of Contracts				Counterparty		Description		Exercise Price		Expiration Date		Premiums Received				Fair Value
Options on Indices
	863,163			Goldman Sachs & Co.		Call on Energy Select Sector SPDR® Fund		67.530 USD		06/17/16		$	708,657			$	(657,202	)
	329,870			Citigroup, Inc.		Call on Materials Select Sector SPDR® Fund		47.120 USD		06/17/16			138,677				(164,453	)
	158,420			HSBC Bank PLC		Call on VanEck Vectors Gold Miners ETF		24.530 USD		06/17/16			180,979				(55,794	)
						Total Written OTC Options						$	1,028,313			$	(877,449	)

 

 

Voya Natural Resources Equity Income Fund

PORTFOLIO OF INVESTMENTS as of May 31, 2016 (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, 2016 was as follows:

 

		Instrument Type		Fair Value
Derivatives not accounted for as hedging instruments
Liability Derivatives
Equity contracts		Written options		$	877,449
Total Liability Derivatives				$	877,449

 

The following is a summary by counterparty of the fair value of OTC derivative instruments subject to Master Netting Agreements and collateral pledged (received), if any, at May 31, 2016:

 

		Citigroup, Inc.				Goldman Sachs & Co.				HSBC Bank PLC				Totals
Liabilities:
Written options		$	164,453			$	657,202			$	55,794			$	877,449
Total Liabilities		$	164,453			$	657,202			$	55,794			$	877,449
Net OTC derivative instruments by counterparty, at fair value		$	(164,453	)		$	(657,202	)		$	(55,794	)			(877,449	)
Total collateral pledged by the Fund/(Received from counterparty)		$	-			$	-			$	-			$	-
Net Exposure(1)		$	(164,453	)		$	(657,202	)		$	(55,794	)		$	(877,449	)

 

⁽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 27, 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:	July 27, 2016
By	/s/ Todd Modic
	Todd Modic
	Senior Vice President and Chief Financial Officer
Date:	July 27, 2016