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: 811-21786

 

Voya Global Advantage and Premium Opportunity 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, 2016

 

 

 

 

 

 

Item 1. Schedule of Investments

 

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

 

Voya Global Advantage and Premium Opportunity Fund

 

The schedules are not audited.

 

 

 

 

Voya Global Advantage and Premium Opportunity Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2016 (Unaudited)

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: 96.3%     
      Australia: 3.6%          
686,969     Fortescue Metals Group Ltd.  $2,939,527    1.4 
557,163     Harvey Norman Holdings Ltd.   1,953,835    0.9 
22,394     Rio Tinto Ltd.   947,089    0.5 
516,946     Scentre Group   1,616,811    0.8 
          7,457,262    3.6 
                 
      Austria: 2.0%          
32,561     Lenzing AG   4,184,996    2.0 
                 
      Canada: 3.5%          
5,787     Canadian Imperial Bank of Commerce   456,567    0.2 
56,498     National Bank Of Canada   2,116,414    1.0 
97,270     Toronto-Dominion Bank   4,603,182    2.3 
          7,176,163    3.5 
                 
      China: 0.7%          
48,472  @  Yum China Holdings, Inc.   1,363,032    0.7 
                 
      Denmark: 0.5%          
33,287     Danske Bank A/S   968,874    0.5 
                 
      Finland: 1.1%          
16,730     Neste Oyj   687,286    0.3 
66,468     UPM-Kymmene OYJ   1,519,197    0.8 
          2,206,483    1.1 
                 
      France: 2.7%          
5,225     Cie Generale des Etablissements Michelin   557,858    0.3 
89,328     Total S.A.   4,258,962    2.1 
10,946     Vinci S.A.   708,915    0.3 
          5,525,735    2.7 
                 
      Germany: 4.4%          
132,011     Deutsche Post AG   4,119,435    2.0 
10,271     Muenchener Rueckversicherungs-Gesellschaft AG   1,871,212    0.9 
27,875     Siemens AG   3,142,176    1.5 
          9,132,823    4.4 
                 
      Hong Kong: 3.3%          
381,551     CLP Holdings Ltd.   3,722,287    1.8 
343,000     Wharf Holdings Ltd.   2,538,648    1.2 
159,000     Yue Yuen Industrial Holdings   571,382    0.3 
          6,832,317    3.3 
                 
      Italy: 0.2%          
111,280     Enel S.p.A.   449,311    0.2 
                 
      Japan: 6.9%          
109,000     Asahi Glass Co., Ltd.   715,806    0.3 
32,700     Astellas Pharma, Inc.   455,942    0.2 
8,200     East Japan Railway Co.   707,288    0.3 
Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)       
      Japan: (continued)          
128,700     Hitachi Chemical Co., Ltd.  $2,873,954    1.4 
89,200     Itochu Corp.   1,232,144    0.6 
77,000     Kajima Corp.   543,428    0.3 
174,500     Mitsubishi Tanabe Pharma Corp.   3,308,665    1.6 
89,800     Nippon Telegraph & Telephone Corp.   3,604,675    1.8 
8,600     Tokyo Electron Ltd.   797,898    0.4 
          14,239,800    6.9 
                 
      Netherlands: 1.4%          
77,269  @  ASR Nederland NV   1,614,782    0.8 
39,484     ING Groep NV   536,481    0.3 
35,636     Koninklijke Ahold Delhaize NV   701,777    0.3 
          2,853,040    1.4 
                 
      Portugal: 0.4%          
267,110     EDP - Energias de Portugal SA   771,680    0.4 
                 
      Singapore: 1.6%          
223,700     United Overseas Bank Ltd.   3,172,961    1.6 
                 
      Switzerland: 4.4%          
24,097     Actelion Ltd. - Reg   4,654,743    2.3 
7,172  @  Partners Group   3,485,498    1.7 
9,577     Swiss Re Ltd.   880,919    0.4 
          9,021,160    4.4 
                 
      United Kingdom: 5.6%          
73,749     British American Tobacco PLC   4,037,051    2.0 
14,675     Diageo PLC   366,917    0.2 
93,255     Imperial Brands PLC   3,999,039    1.9 
239,864     National Grid PLC   2,726,021    1.3 
12,170     Rio Tinto PLC   459,187    0.2 
          11,588,215    5.6 
                 
      United States: 54.0%          
60,416     Aflac, Inc.   4,312,494    2.1 
20,764     AGNC Investment Corp.   387,456    0.2 
6,545  @  Alphabet, Inc. - Class A   5,078,135    2.5 
2,013  @  Alphabet, Inc. - Class C   1,525,934    0.7 
20,301     Altria Group, Inc.   1,297,843    0.6 
23,697     American Electric Power Co., Inc.   1,399,308    0.7 
3,193     Amgen, Inc.   460,015    0.2 
298,013     Annaly Capital Management, Inc.   3,045,693    1.5 
22,017     Apollo Global Management LLC   424,047    0.2 
14,101     Apple, Inc.   1,558,443    0.8 
132,780     AT&T, Inc.   5,129,291    2.5 
55,301     Bank of America Corp.   1,167,957    0.6 
64,375     Best Buy Co., Inc.   2,941,937    1.4 
39,299     CA, Inc.   1,255,996    0.6 
41,495     Cisco Systems, Inc.   1,237,381    0.6 
25,002     Citigroup, Inc.   1,409,863    0.7 
12,771     Colgate-Palmolive Co.   833,052    0.4 
51,405     Corning, Inc.   1,235,262    0.6 

 

 

 

 

Voya Global Advantage and Premium Opportunity Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2016 (Unaudited)(Continued)

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)       
      United States: (continued)          
15,399     Darden Restaurants, Inc.  $1,128,747    0.5 
16,958     Delta Air Lines, Inc.   817,036    0.4 
11,178     Deluxe Corp.   756,751    0.4 
65,828     Discover Financial Services   4,461,164    2.2 
13,944     Dr Pepper Snapple Group, Inc.   1,209,503    0.6 
149,700     Duke Realty Corp.   3,806,871    1.9 
10,248     Eli Lilly & Co.   687,846    0.3 
59,535     Foot Locker, Inc.   4,266,873    2.1 
8,469     Garmin Ltd.   441,743    0.2 
49,873     Gilead Sciences, Inc.   3,675,640    1.8 
3,470     Illinois Tool Works, Inc.   434,375    0.2 
123,480     Intel Corp.   4,284,756    2.1 
646  @  Intuitive Surgical, Inc.   415,856    0.2 
4,119     Lam Research Corp.   436,696    0.2 
38,410     Las Vegas Sands Corp.   2,407,155    1.2 
4,864     Lear Corp.   629,937    0.3 
77,248     Merck & Co., Inc.   4,726,805    2.3 
24,877  @  Michael Kors Holdings Ltd.   1,156,532    0.6 
77,510     Microsoft Corp.   4,670,753    2.3 
14,792     Morgan Stanley   611,797    0.3 
16,051     Omnicom Group, Inc.   1,395,474    0.7 
32,870     Philip Morris International, Inc.   2,901,764    1.4 
20,130     Public Service Enterprise Group, Inc.   831,570    0.4 
13,098     Qualcomm, Inc.   892,367    0.4 
20,085     Scripps Networks Interactive - Class A   1,391,087    0.7 
46,201  @  Spirit Aerosystems Holdings, Inc.   2,691,208    1.3 
3,356     Stanley Black & Decker, Inc.   398,122    0.2 
21,901     Sysco Corp.   1,166,228    0.6 
6,164     T. Rowe Price Group, Inc.   456,506    0.2 
7,907     Tesoro Corp.   643,234    0.3 
7,238     Texas Instruments, Inc.   535,105    0.3 
5,217     Time Warner, Inc.   479,025    0.2 
18,840     Torchmark Corp.   1,320,496    0.6 
8,282     Union Pacific Corp.   839,215    0.4 
23,035  @  United Rentals, Inc.   2,329,069    1.1 
25,080     UnitedHealth Group, Inc.   3,970,666    1.9 
11,296     Unum Group   477,482    0.2 
18,444     US Bancorp   915,191    0.4 
65,141     Valero Energy Corp.   4,010,080    2.0 
59,340     Visa, Inc. - Class A   4,588,169    2.2 
48,472     Yum! Brands, Inc.   3,072,640    1.5 
          111,031,641    54.0 
                 
   Total Common Stock          
   (Cost $182,551,219)   197,975,493    96.3 

Shares        Value   Percentage
of Net
Assets		 
SHORT-TERM INVESTMENTS: 3.6%     
      Mutual Funds: 3.6%          
7,404,375     BlackRock Liquidity Funds, FedFund, Institutional Class, 0.310%          
      (Cost $7,404,375)  $7,404,375    3.6 
                 
   Total Short-Term Investments          
   (Cost $7,404,375)   7,404,375    3.6 
                 
   Total Investments in Securities
(Cost $189,955,594)		  $205,379,868    99.9 
   Assets in Excess of Other Liabilities   146,659    0.1 
   Net Assets  $205,526,527    100.0 

 

@ Non-income producing security.
   
  Cost for federal income tax purposes is $189,956,482.
   
  Net unrealized appreciation consists of:

 

Gross Unrealized Appreciation  $20,682,912 
Gross Unrealized Depreciation   (5,259,526)
      
Net Unrealized Appreciation  $15,423,386 

  

Sector Diversification  Percentage
of Net Assets		 
Financials   18.9%
Information Technology   13.7 
Consumer Discretionary   11.6 
Health Care   10.8 
Industrials   9.3 
Consumer Staples   8.0 
Materials   6.3 
Utilities   4.8 
Energy   4.7 
Telecommunication Services   4.3 
Real Estate   3.9 
Short-Term Investments   3.6 
Assets in Excess of Other Liabilities   0.1 
Net Assets   100.0%

 

 

  

Voya Global Advantage and Premium Opportunity Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2016 (Unaudited)(Continued)

 

Fair Value Measurements

The following is a summary of the fair valuations according to the inputs used as of November 30, 2016 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,
2016		 
Asset Table                    
Investments, at fair value                    
Common Stock                    
Australia  $–   $7,457,262   $–   $7,457,262 
Austria   –    4,184,996    –    4,184,996 
Canada   7,176,163    –    –    7,176,163 
China   1,363,032    –    –    1,363,032 
Denmark   –    968,874    –    968,874 
Finland   –    2,206,483    –    2,206,483 
France   –    5,525,735    –    5,525,735 
Germany   –    9,132,823    –    9,132,823 
Hong Kong   –    6,832,317    –    6,832,317 
Italy   –    449,311    –    449,311 
Japan   –    14,239,800    –    14,239,800 
Netherlands   –    2,853,040    –    2,853,040 
Portugal   –    771,680    –    771,680 
Singapore   –    3,172,961    –    3,172,961 
Switzerland   –    9,021,160    –    9,021,160 
United Kingdom   –    11,588,215    –    11,588,215 
United States   111,031,641    –    –    111,031,641 
Total Common Stock   119,570,836    78,404,657    –    197,975,493 
Short-Term Investments   7,404,375    –    –    7,404,375 
Total Investments, at fair value  $126,975,211   $78,404,657   $–   $205,379,868 
Other Financial Instruments+                    
Forward Foreign Currency Contracts   –    299,923    –    299,923 
Futures   36,362    –    –    36,362 
Total Assets  $127,011,573   $78,704,580   $–   $205,716,153 
Liabilities Table                    
Other Financial Instruments+                    
Forward Foreign Currency Contracts  $–   $(168,179)  $–   $(168,179)
Futures   (15,354)   –    –    (15,354)
Written Options   –    (2,404,094)   –    (2,404,094)
Total Liabilities  $(15,354)  $(2,572,273)  $–   $(2,587,627)

  

(1) For the period ended November 30, 2016, 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, 2016, securities valued at $2,451,048 were transferred from Level 1 to Level 2 within the fair value hierarchy.
+ Other Financial Instruments are derivatives not reflected in the portfolio of investments and may include open forward foreign currency contracts, futures, centrally cleared swaps, OTC swaps and written options. Forward foreign currency contracts, futures and centrally cleared swaps are valued at the unrealized gain (loss) on the instrument.  OTC swaps and written options are valued at the fair value of the instrument.
# The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a portion of the Fund's investments are categorized as Level 2 investments.

 

 

 

  

Voya Global Advantage and Premium Opportunity Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2016 (Unaudited)(Continued)

 

At November 30, 2016, the following forward foreign currency contracts were outstanding for Voya Global Advantage and Premium Opportunity Fund:

 

Counterparty  Currency  Contract Amount   Buy/Sell  Settlement Date  In Exchange For   Fair Value   Unrealized
Appreciation
(Depreciation)		 
                          
Societe Generale  British Pound   102,293   Buy  12/30/16  $127,683   $128,119   $436 
                           $436 
                              
Barclays Bank PLC  Japanese Yen   3,132,828   Sell  12/30/16  $27,739   $27,436   $303 
BNP Paribas S.A.  Japanese Yen   1,548,166,920   Sell  12/30/16   13,765,154    13,558,256    206,898 
BNP Paribas S.A.  Canadian Dollar   9,690,284   Sell  12/30/16   7,222,942    7,216,247    6,695 
BNP Paribas S.A.  Swiss Franc   8,921,845   Sell  12/30/16   8,796,070    8,795,810    260 
The Royal Bank of Scotland PLC  British Pound   9,543,603   Sell  12/30/16   11,848,259    11,953,142    (104,883)
Societe Generale  Hong Kong Sar Dollar   51,831,162   Sell  12/30/16   6,684,069    6,683,478    591 
Societe Generale  EU Euro   23,723,454   Sell  12/30/16   25,123,107    25,186,403    (63,296)
Societe Generale  Australian Dollar   10,521,156   Sell  12/30/16   7,848,190    7,763,450    84,740 
                           $131,308 

  

At November 30, 2016, the following futures contracts were outstanding for Voya Global Advantage and Premium Opportunity Fund:

 

Contract Description  Number
of Contracts		  Expiration
Date		  Notional
Value		   Unrealized
Appreciation/
(Depreciation)		 
Long Contracts                
EURO STOXX 50® Index  95  12/16/16  $3,071,921   $(13,228)
FTSE 100 Index  50  12/16/16   4,242,521    18,980 
Nikkei 225 Index  17  12/08/16   1,365,216    17,382 
S&P 500 E-Mini  9  12/16/16   989,460    (2,126)
         $9,669,118   $21,008 

  

At November 30, 2016, the following over-the-counter written options were outstanding for Voya Global Advantage and Premium Opportunity Fund:

 

Number of
Contracts/Notional
Amount		   Counterparty  Description  Exercise
Price		  Expiration
Date		  Premiums
Received		   Fair Value 
Options on Indices                         
 1,000   BNP Paribas S.A.  Call on EURO STOXX 50® Index   3,113.024    EUR  12/02/16  $49,876   $(2,356)
 1,000   Morgan Stanley & Co. International PLC  Call on EURO STOXX 50® Index   3,072.850    EUR  01/06/17   57,586    (64,064)
 1,000   Societe Generale  Call on EURO STOXX 50® Index   3,013.880    EUR  12/16/16   66,015    (81,834)
 600   BNP Paribas S.A.  Call on FTSE 100 Index   6,778.214    GBP  12/16/16   81,848    (69,657)
 600   Citibank N.A.  Call on FTSE 100 Index   7,080.640    GBP  12/02/16   57,524    – 
 700   Morgan Stanley & Co. International PLC  Call on FTSE 100 Index   6,844.145    GBP  01/06/17   69,396    (80,583)
 24,900   BNP Paribas S.A.  Call on Nikkei 225 Index   17,185.378    JPY  12/16/16   76,977    (251,910)
 25,200   Citibank N.A.  Call on Nikkei 225 Index   17,447.850    JPY  12/02/16   61,333    (189,928)
 25,900   Morgan Stanley & Co. International PLC  Call on Nikkei 225 Index   18,265.450    JPY  01/06/17   70,795    (93,520)
 9,700   Barclays Bank PLC  Call on S&P 500 Index   2,115.360    USD  12/16/16   275,402    (856,453)
 9,600   Barclays Bank PLC  Call on S&P 500 Index   2,151.765    USD  12/02/16   218,409    (458,398)
 9,500   Citibank N.A.  Call on S&P 500 Index   2,206.600    USD  01/06/17   230,375    (255,391)
            Total Written OTC Options  $1,315,536   $(2,404,094)

 

 

 

  

Voya Global Advantage and Premium Opportunity Fund PORTFOLIO OF INVESTMENTS
as of November 30, 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 November 30, 2016 was as follows:

 

   Fair Value 
Derivatives not accounted for as hedging instruments    
         
Asset Derivatives  Instrument Type     
Foreign exchange contracts  Forward foreign currency contracts  $299,923 
Equity contracts  Futures contracts   36,362 
Total Asset Derivatives     $336,285 
         
Liability Derivatives  Instrument Type     
Foreign exchange contracts  Forward foreign currency contracts  $168,179 
Equity contracts  Futures contracts   15,354 
Equity contracts  Written options   2,404,094 
Total Liability Derivatives     $2,587,627 

 

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, 2016:

 

   Barclays
Bank PLC		   BNP
Paribas S.A.		   Citibank N.A.   Morgan Stanley
& Co. International
PLC		   Societe
Generale		   The Royal
Bank of
Scotland PLC		   Totals 
Assets:                            
Forward foreign currency contracts  $303   $213,853   $-   $-   $85,767   $-   $299,923 
Total Assets  $303   $213,853   $-   $-   $85,767   $-   $299,923 
                                    
Liabilities:                                   
Forward foreign currency contracts  $-   $-   $-   $-   $63,296   $104,883   $168,179 
Written options   1,314,851    323,923    445,319    238,167    81,834    -    2,404,094 
Total Liabilities  $1,314,851   $323,923   $445,319   $238,167   $145,130   $104,883   $2,572,273 
                                    
Net OTC derivative instruments by counterparty, at fair value  $(1,314,548)  $(110,070)  $(445,319)  $(238,167)  $(59,363)  $(104,883)   (2,272,350)
                                    
Total collateral pledged by the Fund/(Received from counterparty)  $-   $110,070   $-   $150,000   $-   $-   $260,070 
                                    
Net Exposure(1)(2)  $(1,314,548)  $-   $(445,319)  $(88,167)  $(59,363)  $(104,883)  $(2,012,280)

 

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

(2)At November 30, 2016, the Fund had pledged $310,000 in cash collateral to BNP Paribas S.A. In addition, the Fund had received $880,000 in cash collateral from Societe Generale. Excess cash collateral is not shown for financial reporting purposes.

 

 

 

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 Global Advantage and Premium Opportunity Fund

 

By /s/ Shaun P. Mathews  
  Shaun P. Mathews  
  President and Chief Executive Officer  
     
Date: January 20, 2017  

 

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 20, 2017  
     
By /s/ Todd Modic  
  Todd Modic  
  Senior Vice President and Chief Financial Officer  
     
Date: January 20, 2017