Voya Global Advantage and Premium Opportunity Fund (the “Fund”)* is a diversified closed-end fund with the primary investment objective of providing a high level of income. Capital appreciation is a secondary investment objective. The Fund seeks to achieve its investment objectives by:
Under normal market conditions, the Fund will invest at least 80% of its managed assets in a diversified portfolio of common stocks across a broad range of countries, industries and market sectors. Equity securities held by the Fund may be denominated in both U.S. dollars and non-U.S. currencies. The Fund may invest up to 20% of its managed assets in securities issued by companies located in emerging markets when the Sub-Adviser believes they present attractive investment opportunities.
The extent of call option writing activity depends upon market conditions and the Sub-Adviser’s ongoing assessment of the attractiveness of writing call options on selected indices and/or ETFs. Call options will be written (sold) usually at-the money, out-of-the-money or near-the-money and can be written both in exchange-listed option markets and over-the-counter markets with major international banks, broker-dealers and financial institutions.
The Fund writes call options that are generally short-term (between 10 days and three months until expiration). The Fund typically maintains its call positions until expiration, but it retains the option to buy back the call options and sell new call options.
Additionally, in order to reduce volatility of net asset value (“NAV”) returns, the Fund generally employs a policy to hedge major foreign currencies using foreign currency forwards or zero-cost collars.
In addition to the intended strategy of selling index call options, the Fund may invest in other derivative instruments such as futures for investment, hedging and risk-management purposes to gain or reduce exposure to securities, security markets and market indices consistent with its investment objectives and strategies. Such
| PORTFOLIO MANAGERS’ REPORT | VOYA GLOBAL ADVANTAGE
AND PREMIUM OPPORTUNITY FUND |
derivative instruments are acquired to enable the Fund to make market directional tactical decisions to enhance returns, to protect against a decline in its assets or as a substitute for the purchase or sale of equity securities.
Performance: Based on net asset value (“NAV”), the Fund provided a total return 2.07% for the six-month period ended August 31, 2019.(1) This NAV return reflects a decrease in the Fund’s NAV from $11.43 on February 28, 2019 to $11.19 on August 31, 2019, after taking into account quarterly distributions. Based on its share price as of August 31, 2019, the Fund provided a total return of 5.87% for the period.(1) This share price return reflects an increase in the Fund’s share price from $10.35 on February 28, 2019 to $10.51 on August 31, 2019, after taking into account quarterly distributions. The Fund’s reference index, the MSCI World IndexSM returned 3.72% for the six-month reporting period. During the period, the Fund made quarterly distributions totaling $0.45 per share.(2) As of August 31, 2019, the Fund had 18,304,966 shares outstanding.
Portfolio Specifics: March 1, 2019 — May 6, 2019: The Fund investment process combines fundamental and behavioral alpha sources. We seek to be adaptive to market circumstances, use big data and innovative technologies and tailor made to what we think works best for developed markets equity. The portfolio construction seeks optimal exposure to alpha sources while applying rigorous risk management.
The Fund is well diversified over regions and sectors, with overweight in materials, financials and consumer discretionary, and the main underweights in utilities, communication services and real estate. Europe and developed Asia remain overweight positions while North America is underweight.
During the period, we introduced U.S. beverage company Coca Cola, S&P Global (financials) and CBS (media) to the portfolio. We financed these acquisitions by selling Twenty-first Century Fox and Deutsche Telekom
Equity Portfolio: The strategy performed well from an absolute perspective but lagged in relative terms. Sector allocation added somewhat to relative performance through the underweights in the utilities and health care sectors. This was partly offset by the negative effect of our overweights in the materials and consumer staples sectors. By region the allocation effect was negative in North America and Asia-Pacific.
Stock selection in heath care, IT and communication services was the main to performance. At a stock level, the U.S. pharmaceutical company Biogen (-29.5%) fell sharply after the company announced it will stop developing a Phase 3 trial drug to treat Alzheimer’s disease. The U.S. energy company ConocoPhillips also lagged and the underweights in both Amazon and Facebook detracted. On the positive side, stock selection in financials and real estate contributed positively. Microsoft (+15.1%) added the most to relative performance followed by Discover Financial Services.
Option Portfolio: The Fund generates premiums and seeks gains by writing (selling) call options on a variety of market indices on a portion of the value of the equity portfolio, and by implementing an equity market directional strategy on the same market indices via futures.
During the period, the Fund sold short-maturity options on the S&P 500® Index, the Euro Stoxx 50 Index, the Nikkei 225 Index and the FTSE 100 Index®. The strike prices of the traded options were typically slightly out-of-the the money, and the expiration dates ranged between six and seven weeks. We maintained the coverage ratio at approximately 50% during the period.
During the period all regional markets were up in USD. As could be expected, in this rising market, the option portfolio had a negative contribution to overall return. The futures overlay strategy had a somewhat negative contribution. The Fund continued its policy of hedging currencies back to the U.S. dollar in order to reduce volatility of NAV returns.
For a period after May 6, 2019, until on or about May 20, 2019, VIM worked to transition the Fund’s portfolio in accordance with the investment strategy.
May 21, 2019 — August 31, 2019: Equity Portfolio: For the period, the Fund’s equity portfolio underperformed its reference index. In terms of the portfolio’s performance for the portion of the period since the transition, through August 31, 2019, the core model underperformed while low beta and dividend yield was a tailwind. The portfolio’s stock specific exposures further drove underperformance. On the sector level, stock selection within the information technology and financial sectors had the largest negative impact on returns. By contrast, stock selection was strongest within the energy and materials sectors. At the individual stock level, key detractors included an underweight position in Apple Inc. and overweight positions in Royal Dutch Shell Plc Class A and Legal & General Group plc. Among the key contributors were out-of-benchmark positions in Royal Gold, Inc. and Booz Allen Hamilton Holding Corporation and an overweight position in Tyson Foods, Inc. Class A.
Option Portfolio: For the period, the Fund’s covered-call strategy had a negative impact on relative returns. The Fund implemented this strategy by typically writing call options on regional indices, the selection and allocation of which result from an optimization intended to track the benchmark of the portfolio closely. The strike prices of the options written were typically out of the money or near the money, with expiration dates around six weeks at inception.
The Fund’s covered-call strategy seeks to generate premiums and retain some potential for upside appreciation. The strategy detracted from returns during the period as the positive performance of the equity markets on balance resulted in losses on the short call options.
5
VOYA GLOBAL ADVANTAGE
AND PREMIUM OPPORTUNITY FUND | PORTFOLIO MANAGERS’ REPORT |
The Fund continued its policy of hedging currencies back to the U.S. dollar in order to reduce volatility of NAV returns. This had a positive impact during the period.
Outlook and Current Strategy: Global equity markets declined over August as trade tensions between the United States and China escalated and economic data deteriorated, particularly in the manufacturing sector. Concerns over the global growth outlook caused long-dated interest rates to fall. As a result, long-term U.S. Treasury bonds were the best performing major asset class during the month. In our view, investors’ appetite for bonds seems to reflect expectations of economic deceleration, raising concerns about the potential for recession.
Despite sluggish capital spending, discouraging news flow and the melancholy market mood, U.S. consumers remained resilient, buoyed by a favorable job environment, rising wages and high confidence. Consumer demand is propping up U.S. growth: the Congressional Budget Office’s has revised its estimate of trend growth up to 2.1%.
Earnings growth on the S&P 500® clocked in at 4.9% year-over-year. Although this is down substantially from more than 20% a year ago, we believe that it is actually a reassuring sign: earnings growth was expected to be negative at the start of the quarter, so the beat came as welcome relief in the face of heightening trade conflict, soft manufacturing prints and wavering business confidence. What’s more, in our opinion margins have held up remarkably well.
We think margins will continue to hold up better than most anticipate as rates are likely to remain low and labor costs, although increasing, should be held to manageable levels. Still, given the mature stage of the business cycle and growth headwinds, we are not expecting the double-digit earnings growth of the past few years. In our view, the majority of gains from here are likely to come from earnings multiple expansion.
| * | | The Board of Trustees (the “Board”) of the Fund has approved changes to the Fund’s sub-advisory relationship. The Board approved the reallocation of the Fund’s assets from NNIP Advisors B.V. to Voya Investment Management Co. LLC (“VIM”), effective May 6, 2019, following the termination of NNIP Advisors B.V.’s sub-advisory agreement. In connection with these approvals, the investment strategies and portfolio managers of the Fund were changed effective May 6, 2019.
In conjunction with the strategy and sub-adviser changes, effective May 6, 2019, Paul Zemsky, Vincent Costa, Peg DiOrio, and Steve Wetter were added as portfolio managers of the Fund and Jeffrey Meys, Tjeerd van Cappelle and Willem van Dommelen were removed as portfolio managers of the Fund. |
| | | For a period after May 6, 2019, until on or about May 20, 2019, VIM worked to transition the Fund’s portfolio in accordance with the investment strategy. |
| (1) | | Total returns shown include, if applicable, the effect of fee waivers and/or expense reimbursements by the investment adviser. Had all fees and expenses been considered, the total returns would have been lower. |
| (2) | | The final tax composition of dividends and distributions will not be determined until after the Fund’s tax year-end. |
The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.
Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Fund holdings are subject to change daily. The outlook for this Fund may differ from that presented for other Voya mutual funds. This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements. The Fund’s performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.
6
STATEMENT OF ASSETS AND LIABILITIES AS OF AUGUST 31, 2019 (UNAUDITED)
ASSETS: | | | | |
| Investments in securities at fair value* | | $ | 203,033,555 | |
| Cash | | | 2,740,431 | |
| Cash pledged as collateral for OTC derivatives (Note 2) | | | 400,000 | |
| Foreign currencies at value** | | | 62,860 | |
| Receivables: | | | | |
| Investment securities sold | | | 554,991 | |
| Dividends | | | 670,298 | |
| Foreign tax reclaims | | | 195,680 | |
| Unrealized appreciation on forward foreign currency contracts | | | 621,684 | |
| Prepaid expenses | | | 80 | |
| Other assets | | | 11,322 | |
| Total assets | | | 208,290,901 | |
LIABILITIES: | | | | |
| Payable for investment securities purchased | | | 1,365,906 | |
| Unrealized depreciation on forward foreign currency contracts | | | 319,646 | |
| Payable for investment management fees | | | 146,529 | |
| Payable to trustees under the deferred compensation plan (Note 6) | | | 11,322 | |
| Payable for trustee fees | | | 1,041 | |
| Other accrued expenses and liabilities | | | 100,241 | |
| Written options, at fair valueˆ | | | 1,577,998 | |
| Total liabilities | | | 3,522,683 | |
NET ASSETS | | $ | 204,768,218 | |
| | | | | |
NET ASSETS WERE COMPRISED OF: | | | | |
| Paid-in capital | | $ | 189,674,481 | |
| Total distributable earnings | | | 15,093,737 | |
NET ASSETS | | $ | 204,768,218 | |
| | | | | |
| | | | | |
| | | | | |
* Cost of investments in securities | | $ | 201,042,471 | |
** Cost of foreign currencies | | $ | 64,597 | |
ˆ Premiums received on written options | | $ | 1,574,807 | |
| | | | | |
| Net assets | | $ | 204,768,218 | |
| Shares authorized | | | unlimited | |
| Par value | | $ | 0.010 | |
| Shares outstanding | | | 18,304,966 | |
| Net asset value | | $ | 11.19 | |
See Accompanying Notes to Financial Statements
7
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED AUGUST 31, 2019 (UNAUDITED)
INVESTMENT INCOME: | | | | |
| Dividends, net of foreign taxes withheld* | | $ | 4,201,935 | |
| Interest | | | 3,268 | |
| Total investment income | | | 4,205,203 | |
EXPENSES: | | | | |
| Investment management fees | | | 889,671 | |
| Transfer agent fees | | | 11,460 | |
| Shareholder reporting expense | | | 27,600 | |
| Professional fees | | | 28,520 | |
| Custody and accounting expense | | | 65,557 | |
| Trustee fees | | | 4,164 | |
| Miscellaneous expense | | | 6,487 | |
| Total expenses | | | 1,033,459 | |
| Net investment income | | | 3,171,744 | |
| | | | | |
REALIZED AND UNREALIZED GAIN (LOSS): | | | | |
| Net realized gain (loss) on: | | | | |
| Investments | | | 19,203,259 | |
| Forward foreign currency contracts | | | 2,231,480 | |
| Foreign currency related transactions | | | (154,545 | ) |
| Futures | | | (1,075,380 | ) |
| Written options | | | (2,285,231 | ) |
| Net realized gain | | | 17,919,583 | |
| Net change in unrealized appreciation (depreciation) on: | | | | |
| Investments | | | (19,361,217 | ) |
| Forward foreign currency contracts | | | 231,691 | |
| Foreign currency related transactions | | | (10,098 | ) |
| Futures | | | 866,889 | |
| Written options | | | 1,012,548 | |
| Net change in unrealized appreciation (depreciation) | | | (17,260,187 | ) |
| Net realized and unrealized gain | | | 659,396 | |
Increase in net assets resulting from operations | | $ | 3,831,140 | |
| | | | | |
| | | | | |
| * Foreign taxes withheld | | $ | 211,122 | |
See Accompanying Notes to Financial Statements
8
STATEMENTS OF CHANGES IN NET ASSETS
| | Six Months Ended
August 31,
2019
(Unaudited) | | Year Ended
February 28,
2019 |
|---|
FROM OPERATIONS: | | | | | | | | | | |
| Net investment income | | | $ | 3,171,744 | | | | $ | 3,757,909 | |
| Net realized gain | | | | 17,919,583 | | | | | 13,227,581 | |
| Net change in unrealized appreciation (depreciation) | | | | (17,260,187 | ) | | | | (13,261,173 | ) |
| Increase in net assets resulting from operations | | | | 3,831,140 | | | | | 3,724,317 | |
| | | | | | | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | | | | | | | |
| Total distributions (excluding return of capital): | | | | (8,237,235 | ) | | | | (16,474,469 | ) |
| Total distributions | | | | (8,237,235 | ) | | | | (16,474,469 | ) |
| Net decrease in net assets | | | | (4,406,095 | ) | | | | (12,750,152 | ) |
| | | | | | | | |
NET ASSETS: | | | | | | | | | | |
| Beginning of year or period | | | | 209,174,313 | | | | | 221,924,465 | |
| End of year or period | | | $ | 204,768,218 | | | | $ | 209,174,313 | |
See Accompanying Notes to Financial Statements
9
Selected data for a share of beneficial interest outstanding throughout each year or period.
| | Per Share Operating Performance | | Ratios and Supplemental Data | |
|---|
| | | | Income (loss) from investment operations | | | | Less distributions | | | | | | | | | | | | | | Ratios to average net assets | |
|---|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|---|
| | Net asset value, beginning of year or period | | Net investment income gain (loss) | | Net realized and unrealized gain (loss) | | Total from investment operations | | From net investment income | | From net realized gains | | From return of capital | | Total distributions | | Net asset value, end of year or period | | Market value, end of year or period | | Total investment return at net asset value(1) | | Total investment return at market value(2) | | Net assets, end of year or period (000’s) | | Gross expenses prior to expense waiver/ recoupment(3) | | Net expenses after expense waiver/ recoupment(3),(4) | | Net investment income (loos)(3),(4) | | Portfolio turnover rate | |
| Year or period ended | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | ($) | | (%) | | (%) | | ($000’s) | | (%) | | (%) | | (%) | | (%) | |
08-31-19+ | | | 11.43 | | | | 0.17 | • | | | 0.04 | | | | 0.21 | | | | 0.45 | | | | — | | | | — | | | | 0.45 | | | | 11.19 | | | | 10.51 | | | | 2.07 | | | | 5.87 | | | | 204,768 | | | | 0.99 | | | | 0.99 | | | | 3.02 | | | | 106 | | |
| 02-28-19 | | | 12.12 | | | | 0.21 | | | | 0.00 | | | | 0.21 | | | | 0.41 | | | | 0.49 | | | | — | | | | 0.90 | | | | 11.43 | | | | 10.35 | | | | 2.43 | | | | 0.46 | | | | 209,174 | | | | 0.99 | | | | 0.99 | | | | 1.76 | | | | 70 | | |
| 02-28-18 | | | 11.62 | | | | 0.19 | • | | | 1.21 | | | | 1.40 | | | | 0.04 | | | | 0.78 | | | | 0.08 | | | | 0.90 | | | | 12.12 | | | | 11.19 | | | | 13.07 | | | | 16.75 | | | | 221,924 | | | | 0.99 | | | | 0.99 | | | | 1.55 | | | | 92 | | |
| 02-28-17 | | | 10.71 | | | | 0.18 | | | | 1.80 | | | | 1.98 | | | | 0.42 | | | | 0.16 | | | | 0.49 | | | | 1.07 | | | | 11.62 | | | | 10.39 | | | | 20.77 | | | | 21.11 | | | | 213,271 | | | | 1.00 | | | | 1.00 | | | | 1.59 | | | | 98 | | |
| 02-29-16 | | | 12.93 | | | | 0.17 | | | | (1.27 | ) | | | (1.10 | ) | | | 0.39 | | | | 0.73 | | | | — | | | | 1.12 | | | | 10.71 | | | | 9.55 | | | | (8.48 | )(5) | | | (10.96 | ) | | | 196,576 | | | | 1.00 | | | | 1.00 | | | | 1.36 | | | | 117 | | |
| 02-28-15 | | | 13.09 | | | | 0.17 | | | | 0.79 | | | | 0.96 | | | | 0.59 | | | | — | | | | 0.53 | | | | 1.12 | | | | 12.93 | | | | 11.85 | | | | 8.72 | | | | 9.52 | | | | 237,394 | | | | 0.95 | | | | 0.97 | | | | 1.32 | | | | 17 | | |
| 02-28-14 | | | 12.92 | | | | 0.19 | | | | 1.10 | | | | 1.29 | | | | 0.27 | | | | — | | | | 0.85 | | | | 1.12 | | | | 13.09 | | | | 11.91 | | | | 10.94 | | | | 3.14 | | | | 240,301 | | | | 0.99 | | | | 1.00 | | | | 1.43 | | | | 11 | | |
| 02-28-13 | | | 12.66 | | | | 0.21 | | | | 1.23 | | | | 1.44 | | | | 0.44 | | | | 0.54 | | | | 0.20 | | | | 1.18 | | | | 12.92 | | | | 12.64 | | | | 12.85 | | | | 17.49 | | | | 237,034 | | | | 1.07 | | | | 1.00 | | | | 1.68 | | | | 234 | | |
| 02-29-12 | | | 13.76 | | | | 0.22 | • | | | 0.00 | * | | | 0.22 | | | | 1.32 | | | | — | | | | — | | | | 1.32 | | | | 12.66 | | | | 11.90 | | | | 2.43 | | | | (3.44 | ) | | | 232,156 | | | | 1.00 | | | | 1.00 | | | | 1.76 | | | | 135 | | |
| 02-28-11 | | | 13.37 | | | | 0.20 | | | | 1.57 | | | | 1.77 | | | | 1.38 | | | | — | | | | — | | | | 1.38 | | | | 13.76 | | | | 13.72 | | | | 14.05 | | | | 6.32 | | | | 251,545 | | | | 0.98 | | | | 0.99 | † | | | 1.48 | † | | | 164 | | |
| 02-28-10 | | | 11.29 | | | | 0.21 | • | | | 3.64 | | | | 3.85 | | | | — | | | | — | | | | 1.77 | | | | 1.77 | | | | 13.37 | | | | 14.30 | | | | 35.81 | | | | 57.38 | | | | 242,426 | | | | 1.01 | | | | 1.00 | † | | | 1.61 | † | | | 141 | | |
(1) | Total investment return at net asset value has been calculated assuming a purchase at net asset value at the beginning of each period and a sale at net asset value at the end of each period and assumes reinvestment of dividends, capital gain distributions and return of capital distributions/allocations, if any, in accordance with the provisions of the dividend reinvestment plan. Total investment return at net asset value is not annualized for periods less than one year. |
(2) | Total investment return at market value measures the change in the market value of your investment assuming reinvestment of dividends, capital gain distributions and return of capital distributions/allocations, if any, in accordance with the provisions of the Fund’s dividend reinvestment plan. Total investment return at market value is not annualized for periods less than one year. |
(3) | Annualized for periods less than one year. |
(4) | The Investment Adviser has entered into a written expense limitation agreement with the Fund under which it will limit the |
| expenses of the Fund (excluding interest, taxes, investment-related costs, leverage expenses, extraordinary expenses and acquired fund fees and expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred. |
(5) | Excluding amounts related to a foreign currency settlement recorded in the fiscal year ended February 29, 2016, total return would have been (8.65)%. |
| + | Unaudited. |
• | Calculated using average number of shares outstanding throughout the year or period. |
| * | Amount is less than $0.005 or 0.005% or more than $(0.005) or (0.005)%. |
† | Impact of waiving the advisory fee for the ING Institutional Prime Money Market Fund holding has less than 0.005% impact on the expense ratio and net investment income or loss ratio. |
See Accompanying Notes to Financial Statements
10
NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2019 (UNAUDITED)
NOTE 1 — ORGANIZATION
Voya Global Advantage and Premium Opportunity Fund (the “Fund”) is a diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund is organized as a Delaware statutory trust.
Voya Investments, LLC (“Voya Investments” or the “Investment Adviser”), an Arizona limited liability company, serves as the Investment Adviser to the Fund. The Investment Adviser has engaged Voya Investment Management Co. LLC (“Voya IM” or the “Sub-Adviser”), a Delaware limited liability company, to serve as the Sub-Adviser to the Fund. Prior to May 6, 2019, Voya IM provided certain consulting services for the Investment Adviser and NNIP Advisors B.V. (“NNIP Advisors”), a subsidiary of NN Group N.V. (“NN Group”), domiciled in The Hague, The Netherlands, served as a sub-adviser to the Fund.
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES
The following significant accounting policies are consistently followed by the Fund in the preparation of its financial statements. The Fund is considered an investment company under U.S. generally accepted accounting principles (“GAAP”) and follows the accounting and reporting guidance applicable to investment companies.
A. Security Valuation. The Fund is open for business every day the New York Stock Exchange (“NYSE”) opens for regular trading (each such day, a “Business Day”). The net asset value (“NAV”) per share of the Fund is determined each Business Day as of the close of the regular trading session (“Market Close”), as determined by the Consolidated Tape Association (“CTA”), the central distributor of transaction prices for exchange-traded securities (normally 4:00 p.m. Eastern time unless otherwise designated by the CTA). The data reflected on the consolidated tape provided by the CTA is generated by various market centers, including all securities exchanges, electronic communications networks, and third-market broker-dealers. The NAV per share of the Fund is calculated by taking the value of the Fund’s assets, subtracting the Fund’s liabilities, and dividing by the number of shares that are outstanding. On days when the Fund is closed for business, Fund shares will not be priced and the Fund does not transact purchase and redemption orders. To the extent the Fund’s assets are traded in other markets on days when the Fund does not price its shares, the value of the Fund’s assets will likely change and you will not be able to purchase or redeem shares of the Fund.
Assets for which market quotations are readily available are valued at market value. A security listed or traded on an
exchange is valued at its last sales price or official closing price as of the close of the regular trading session on the exchange where the security is principally traded or, if such price is not available, at the last sale price as of the Market Close for such security provided by the CTA. Bank loans are valued at the average of the averages of the bid and ask prices provided to an independent loan pricing service by brokers. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Investments in open-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in registered investment companies that trade on an exchange are valued at the last sales price or official closing price as of the close of the regular trading session on the exchange where the security is principally traded.
When a market quotation is not readily available or is deemed unreliable, the Fund will determine a fair value for the relevant asset in accordance with procedures adopted by the Fund’s Board of Trustees (“Board”). Such procedures provide, for example, that: (a) Exchange-traded securities are valued at the mean of the closing bid and ask; (b) Debt obligations are valued using an evaluated price provided by an independent pricing service. Evaluated prices provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect factors such as institution-size trading in similar groups of securities, developments related to specific securities, benchmark yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data; (c) Securities traded in the over-the-counter (“OTC”) market are valued based on prices provided by independent pricing services or market makers; (d) Options not listed on an exchange are valued by an independent source using an industry accepted model, such as Black-Scholes; (e) Centrally cleared swap agreements are valued using a price provided by the central counterparty clearinghouse; (f) OTC swap agreements are valued using a price provided by an independent pricing service; (g) Forward foreign currency exchange contracts are valued utilizing current and forward rates obtained from an independent pricing service. Such prices from the third party pricing service are for specific settlement periods and the Fund’s forward foreign currency exchange contracts are valued at an interpolated rate between the closest preceding and subsequent period reported by the independent pricing service; and (h) Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by brokers.
11
NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2019 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
Foreign securities’ (including forward foreign currency exchange contracts) prices are converted into U.S. dollar amounts using the applicable exchange rates as of Market Close. If market quotations are available and believed to be reliable for foreign exchange-traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before Market Close, closing market quotations may become unreliable. An independent pricing service determines the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of Market Close. Foreign securities’ prices meeting the approved degree of certainty that the price is not reflective of current value will be valued by the independent pricing service using pricing models designed to estimate likely changes in the values of those securities between the times in which the trading in those securities is substantially completed and Market Close. Multiple factors may be considered by the independent pricing service in determining the value of such securities and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures.
All other assets for which market quotations are not readily available or became unreliable (or if the above fair valuation methods are unavailable or determined to be unreliable) are valued at fair value as determined in good faith by or under the supervision of the Board following procedures approved by the Board. The Board has delegated to the Investment Adviser responsibility for overseeing the implementation of the Fund’s valuation procedures; a “Pricing Committee” comprised of employees of the Investment Adviser or its affiliates has responsibility for applying the fair valuation methods set forth in the procedures and, if a fair valuation cannot be determined pursuant to the fair valuation methods, determining the fair value of assets held by the Fund. Issuer specific events, transaction price, position size, nature and duration of restrictions on disposition of the security, market trends, bid/ask quotes of brokers and other market data may be reviewed in the course of making a good faith determination of a security’s fair value. Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer’s assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of fair valuation, the values used to determine the Fund’s NAV may materially differ from the value received upon actual sale of those investments. Thus, fair valuation may have an unintended dilutive or accretive effect on the value of shareholders’ investments in the Fund.
Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as “Level 1,” inputs other than quoted prices for an asset or liability that are observable are classified as “Level 2” and significant unobservable inputs, including the Sub-Adviser’s or Pricing Committee’s judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as “Level 3.” The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Short-term securities of sufficient credit quality are generally considered to be Level 2 securities under applicable accounting rules. A table summarizing the Fund’s investments under these levels of classification is included within the Portfolio of Investments.
GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in or out of the Level 3 category during the period. The beginning of period timing recognition is used for the transfers between levels of the Fund’s assets and liabilities. A reconciliation of Level 3 investments is presented only when the Fund has a significant amount of Level 3 investments.
B. Securities Transactions and Revenue Recognition. Securities transactions are recorded on the trade date. Realized gains or losses on sales of investments are calculated on the identified cost basis. Interest income is recorded on the accrual basis. Premium amortization and discount accretion are determined using the effective yield method. Dividend income is recorded on the ex-dividend date, or in the case of some foreign dividends, when the information becomes available to the Fund.
C. Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:
| (1) | | Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at Market Close. |
| | | |
| (2) | | Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions. |
Although the net assets and the market values are presented at the foreign exchange rates at Market Close, the Fund does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from
12
NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2019 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses from investments. For securities, which are subject to foreign withholding tax upon disposition, liabilities are recorded on the Statement of Assets and Liabilities for the estimated tax withholding based on the securities’ current market value. Upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.
Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities, resulting from changes in the exchange rate. Foreign security and currency transactions may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, revaluation of currencies and future adverse political and economic developments which could cause securities and their markets to be less liquid and prices more volatile than those of comparable U.S. companies and U.S. government securities. The foregoing risks are even greater with respect to securities of issuers in emerging markets.
D. Distributions to Shareholders. The Fund intends to make quarterly distributions from its cash available for distribution, which consists of the Fund’s dividends and interest income after payment of Fund expenses, net option premiums and net realized and unrealized gains on investments. Such quarterly distributions may also consist of return of capital. At least annually, the Fund intends to distribute all or substantially all of its net realized capital gains. Distributions are recorded on the ex-dividend date. Distributions are determined annually in accordance with federal tax regulations, which may differ from GAAP for investment companies.
The tax treatment and characterization of the Fund’s distributions may vary significantly from time to time depending on whether the Fund has gains or losses on the call options written on its portfolio versus gains or losses on the equity securities in the portfolio. Each quarter, the Fund will provide disclosures with distribution payments made that estimate the percentages of that distribution that represent net investment income, other income or capital gains, and return of capital, if any. The final composition of
the tax characteristics of the distributions cannot be determined with certainty until after the end of the Fund’s tax year, and will be reported to shareholders at that time. A significant portion of the Fund’s distributions may constitute a return of capital. The amount of quarterly distributions will vary, depending on a number of factors. As portfolio and market conditions change, the rate of dividends on the common shares will change. There can be no assurance that the Fund will be able to declare a dividend in each period.
E. Federal Income Taxes. It is the policy of the Fund to comply with the requirements of subchapter M of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its net investment income and any net realized capital gains to its shareholders. Therefore, a federal income tax or excise tax provision is not required. Management has considered the sustainability of the Fund’s tax positions taken on federal income tax returns for all open tax years in making this determination. The Fund may utilize equalization accounting for tax purposes, whereby a portion of redemption payments are treated as distributions of income or gain.
F. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
G. Risk Exposures and the Use of Derivative Instruments. The Fund’s investment objectives permit the Fund to enter into various types of derivatives contracts, including, but not limited to, forward foreign currency exchange contracts, futures and purchased and written options. In doing so, the Fund will employ strategies in differing combinations to permit it to increase or decrease the level of risk, or change the level or types of exposure to risk factors. This may allow the Fund to pursue its objectives more quickly and efficiently, than if it were to make direct purchases or sales of securities capable of affecting a similar response to market or credit factors.
In pursuit of its investment objectives, the Fund may seek to increase or decrease its exposure to the following market or credit risk factors:
Credit Risk. The price of a bond or other debt instrument is likely to fall if the issuer’s actual or perceived financial health deteriorates, whether because of broad economic or issuer-specific reasons. In certain cases, the issuer could
13
NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2019 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
be late in paying interest or principal, or could fail to pay its financial obligations altogether.
Equity Risk. Stock prices may be volatile or have reduced liquidity in response to real or perceived impacts of factors including, but not limited to, economic conditions, changes in market interest rates, and political events. Stock markets tend to be cyclical, with periods when stock prices generally rise and periods when stock prices generally decline. Any given stock market segment may remain out of favor with investors for a short or long period of time, and stocks as an asset class may underperform bonds or other asset classes during some periods. Additionally, legislative, regulatory or tax policies or developments in these areas may adversely impact the investment techniques available to a manager, add to costs and impair the ability of the Fund to achieve its investment objectives.
Foreign Exchange Rate Risk. To the extent that the Fund invests directly in foreign (non-U.S.) currencies or in securities denominated in, or that trade in, foreign (non-U.S.) currencies, it is subject to the risk that those foreign (non-U.S.) currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged by the Fund through foreign currency exchange transactions.
Currency rates may fluctuate significantly over short periods of time. Currency rates may be affected by changes in market interest rates, intervention (or the failure to intervene) by U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, by the imposition of currency controls, or other political or economic developments in the United States or abroad.
Interest Rate Risk. Changes in short-term market interest rates will directly affect the yield on Common Shares. If short-term market interest rates fall, the yield on Common Shares will also fall. To the extent that the interest rate spreads on loans in the Fund’s portfolio experience a general decline, the yield on the Common Shares will fall and the value of the Fund’s assets may decrease, which will cause the Fund’s NAV to decrease. Conversely, when short-term market interest rates rise, because of the lag between changes in such short-term rates and the resetting of the floating rates on assets in the Fund’s portfolio, the impact of rising rates will be delayed to the extent of such lag. In the case of inverse securities, the interest rate paid by such securities generally will decrease when the market rate of interest to which the inverse security is indexed increases. With respect to investments in fixed rate instruments, a rise in market interest rates
generally causes values of such instruments to fall. The values of fixed rate instruments with longer maturities or duration are more sensitive to changes in market interest rates.
As of the date of this report, the United States experiences a low interest rate environment, which may increase the Fund’s exposure to risks associated with rising market interest rates. Rising market interest rates could have unpredictable effects on the markets and may expose fixed-income and related markets to heightened volatility which could reduce liquidity for certain investments, adversely affect values, and increase costs. If dealer capacity in fixed-income and related markets is insufficient for market conditions, it may further inhibit liquidity and increase volatility in the fixed-income and related markets. Further, recent and potential changes in government policy may affect interest rates.
Risks of Investing in Derivatives. The Fund’s use of derivatives can result in losses due to unanticipated changes in the market or credit risk factors and the overall market. In instances where the Fund is using derivatives to decrease, or hedge, exposures to market or credit risk factors for securities held by the Fund, there are also risks that those derivatives may not perform as expected resulting in losses for the combined or hedged positions.
Derivative instruments are subject to a number of risks, including the risk of changes in the market price of the underlying securities, credit risk with respect to the counterparty, risk of loss due to changes in market interest rates and liquidity and volatility risk. The amounts required to purchase certain derivatives may be small relative to the magnitude of exposure assumed by the Fund. Therefore, the purchase of certain derivatives may have an economic leveraging effect on the Fund and exaggerate any increase or decrease in the NAV. Derivatives may not perform as expected, so the Fund may not realize the intended benefits. When used for hedging purposes, the change in value of a derivative may not correlate as expected with the currency, security or other risk being hedged. When used as an alternative or substitute for direct cash investments, the return provided by the derivative may not provide the same return as direct cash investment. In addition, given their complexity, derivatives expose the Fund to the risk of improper valuation.
Generally, derivatives are sophisticated financial instruments whose performance is derived, at least in part, from the performance of an underlying asset or assets. Derivatives include, among other things, swap agreements, options, forwards and futures. Investments in derivatives are generally negotiated OTC with a single counterparty and as a result are subject to credit risks related to the counterparty’s ability or willingness to
14
NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2019 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
perform its obligations; any deterioration in the counterparty’s creditworthiness could adversely affect the value of the derivative. In addition, derivatives and their underlying securities may experience periods of illiquidity which could cause the Fund to hold a security it might otherwise sell, or to sell a security it otherwise might hold at inopportune times or at an unanticipated price. A manager might imperfectly judge the direction of the market. For instance, if a derivative is used as a hedge to offset investment risk in another security, the hedge might not correlate to the market’s movements and may have unexpected or undesired results such as a loss or a reduction in gains.
Counterparty Credit Risk and Credit Related Contingent Features. Certain derivative positions are subject to counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. The Fund’s derivative counterparties are financial institutions who are subject to market conditions that may weaken their financial position. The Fund intends to enter into financial transactions with counterparties that it believes to be creditworthy at the time of the transaction. To reduce this risk, the Fund generally enters into master netting arrangements, established within the Fund’s International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreements (“Master Agreements”). These agreements are with select counterparties and they govern transactions, including certain OTC derivative and forward foreign currency contracts, entered into by the Fund and the counterparty. The Master Agreements maintain provisions for general obligations, representations, agreements, collateral, and events of default or termination. The occurrence of a specified event of termination may give a counterparty the right to terminate all of its contracts and affect settlement of all outstanding transactions under the applicable Master Agreement.
The Fund may also enter into collateral agreements with certain counterparties to further mitigate counterparty credit risk associated with OTC derivative and forward foreign currency contracts. Subject to established minimum levels, collateral is generally determined based on the net aggregate unrealized gain or loss on contracts with a certain counterparty. Collateral pledged to the Fund is held in a segregated account by a third-party agent and can be in the form of cash or debt securities issued by the U.S. government or related agencies.
As of August 31, 2019, the maximum amount of loss the Fund would incur if the counterparties to its derivative transactions failed to perform would be $621,684 which represents the gross payments to be received by the Fund on open forward foreign currency contracts were they to be
unwound as of August 31, 2019. As of August 31, 2019, the Fund had not received any cash collateral for its open OTC derivative transactions.
The Fund’s master agreements with derivative counterparties have credit related contingent features that if triggered would allow its derivatives counterparties to close out and demand payment or additional collateral to cover their exposure from the Fund. Credit related contingent features are established between the Fund and its derivatives counterparties to reduce the risk that the Fund will not fulfill its payment obligations to its counterparties. These triggering features include, but are not limited to, a percentage decrease in the Fund’s net assets and or a percentage decrease in the Fund’s NAV, which could cause the Fund to accelerate payment of any net liability owed to the counterparty. The contingent features are established within the Fund’s Master Agreements.
As of August 31, 2019, the Fund had a liability position of $1,897,644 on open forward foreign currency contracts and written options with credit related contingent features. If a contingent feature would have been triggered as of August 31, 2019, the Fund could have been required to pay this amount in cash to its counterparties. As of August 31, 2019, the Fund had pledged $400,000 in cash collateral for its open OTC derivatives transactions. There were no credit events during the period ended August 31, 2019 that triggered any credit related contingent features.
H. Forward Foreign Currency Contracts and Futures Contracts. The Fund may enter into forward foreign currency contracts primarily to hedge against foreign currency exchange rate risks on its non-U.S. dollar denominated investment securities. When entering into a forward foreign currency contract, the Fund agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. These contracts are valued daily and the Fund’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in the statement of assets and liabilities. Realized and unrealized gains and losses on forward foreign currency contracts are included on the Statement of Operations. These instruments involve market and/or credit risk in excess of the amount recognized in the statement of assets and liabilities. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movement in currency and securities values and interest rates.
During the period ended August 31, 2019, the Fund used forward foreign currency contracts to hedge its investments
15
NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2019 (UNAUDITED) (CONTINUED)
NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)
in non-U.S. dollar denominated equity securities in an attempt to decrease the volatility of the Fund’s NAV.
During the period ended August 31, 2019, the Fund had average contract amounts on forward foreign currency contracts to buy and sell of $1,983,374 and $74,185,944, respectively. Please refer to the table within the Portfolio of Investments for open forward foreign currency contracts at August 31, 2019.
The Fund may enter into futures contracts involving foreign currency, interest rates, securities and securities indices. A futures contract obligates the seller of the contract to deliver and the purchaser of the contract to take delivery of the type of foreign currency, financial instrument or security called for in the contract at a specified future time for a specified price. Upon entering into such a contract, the Fund is required to deposit and maintain as collateral such initial margin as required by the exchange on which the contract is traded. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount equal to the daily fluctuations in the value of the contract. Such receipts or payments are known as variation margin and are recorded as unrealized gains or losses by the Fund. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed.
Futures contracts are exposed to the market risk factor of the underlying financial instrument. During the period ended August 31, 2019, the Fund had purchased and sold futures contracts on various equity indices to enable the Fund to make market directional tactical decisions to enhance returns, to protect against a decline in its assets or as a substitute for the purchase or sale of equity securities. Additional associated risks of entering into futures contracts include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund’s securities. With futures, there is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.
During the period ended August 31, 2019, the Fund had average notional values on futures contracts purchased and sold of $765,801 and $18,640,114, respectively. There were no open futures contracts at August 31, 2019.
I. Options Contracts. The Fund may purchase put and call options and may write (sell) put options and covered
call options. The premium received by the Fund upon the writing of a put or call option is included in the Statement of Assets and Liabilities as a liability which is subsequently marked-to-market until it is exercised or closed, or it expires. The Fund will realize a gain or loss upon the expiration or closing of the option contract. When an option is exercised, the proceeds on sales of the underlying security for a written call option or purchased put option or the purchase cost of the security for a written put option or a purchased call option is adjusted by the amount of premium received or paid. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. Risks may also arise from an illiquid secondary market or from the inability of counterparties to meet the terms of the contract.
The Fund generates premiums and seeks gains by writing call options on indices on a portion of the value of the equity portfolio. During the period ended August 31, 2019, the Fund had an average notional amount of $102,815,850 on written equity options.
J. Indemnifications. In the normal course of business, the Fund may enter into contracts that provide certain indemnifications. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, management considers the risk of loss from such claims remote.
NOTE 3 — INVESTMENT TRANSACTIONS
The cost of purchases and the proceeds from sales of investments for the period ended August 31, 2019, excluding short-term securities, were $217,596,459 and $213,402,121, respectively.
NOTE 4 — INVESTMENT MANAGEMENT FEES
The Fund has entered into an investment management agreement (“Management Agreement”) with the Investment Adviser. The Investment Adviser has overall responsibility for the management of the Fund. The Investment Adviser oversees all investment management and portfolio management services for the Fund and assists in managing and supervising all aspects of the general day-to-day business activities and operations of the Fund, including custodial, transfer agency, dividend disbursing, accounting, auditing, compliance and related services. This Management Agreement compensates the Investment Adviser with a management fee, payable monthly, based on an annual rate of 0.85% of the Fund’s average daily managed assets. For purposes of the Management Agreement, managed assets are defined as
16
NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2019 (UNAUDITED) (CONTINUED)
NOTE 4 — INVESTMENT MANAGEMENT FEES
(continued)
the Fund’s average daily gross asset value, minus the sum of the Fund’s accrued and unpaid dividends on any outstanding preferred shares and accrued liabilities (other than liabilities for the principal amount of any borrowings incurred, commercial paper or notes issued by the Fund and the liquidation preference of any outstanding preferred shares). As of August 31, 2019 there were no preferred shares outstanding.
Prior to May 6, 2019, the Investment Adviser had entered into a consulting agreement with Voya IM (the “Consultant”). For its services, the Consultant received a consultancy fee from the Investment Adviser. No fee was paid by the Fund directly to the Consultant. These services include, among other things, furnishing statistical and other factual information; providing advice with respect to potential investment strategies that may be employed for the Fund, including, but not limited to, potential options strategies; developing economic models of the anticipated investment performance and yield for the Fund; and providing advice to the Investment Adviser and/or sub-advisers with respect to the Fund’s level and/or managed distribution policy.
The Investment Adviser has entered into a sub-advisory agreement with Voya IM. Voya IM provides investment advice for the Fund and is paid by the Investment Adviser based on the average daily managed assets of the Fund. Subject to policies as the Board or the Investment Adviser may determine, Voya IM manages the Fund’s assets in accordance with the Fund’s investment objectives, policies and limitations.
Prior to May 6, 2019, the Investment Adviser had entered into sub-advisory agreements with NNIP Advisors and Voya IM. Subject to policies as the Board or the Investment Adviser may determine, NNIP Advisors managed all of the Fund’s assets in accordance with the Fund’s investment objectives, policies and limitations. NNIP Advisors provided investment advice for the Fund and was paid by the Investment Adviser based on the average daily managed assets of the Fund. However, the Investment Adviser may have allocated all or some of the Fund’s assets to Voya IM for management, and may have changed the allocation of the Fund’s assets among the two sub-advisers in its discretion, to pursue the Fund’s investment objective. Each sub-adviser would have made investment decisions solely for the assets it was allocated to manage.
NOTE 5 — EXPENSE LIMITATION AGREEMENT
The Investment Adviser has entered into a written expense limitation agreement (“Expense Limitation Agreement”) with the Fund under which it will limit the expenses of the Fund, excluding interest, taxes, investment-related costs, leverage expenses, extraordinary expenses, and acquired fund fees and expenses to 1.00% of average daily managed assets.
The Investment Adviser may at a later date recoup from the Fund for fees waived and/or other expenses reimbursed by the Investment Adviser during the previous 36 months, but only if, after such recoupment, the Fund’s expense ratio does not exceed the percentage described above. Waived and reimbursed fees net of any recoupment by the Investment Adviser of such waived and reimbursed fees are reflected on the accompanying Statement of Operations. Amounts payable by the Investment Adviser are reflected on the accompanying Statement of Assets and Liabilities.
As of August 31, 2019, there are no amounts of waived and/or reimbursed fees that are subject to possible recoupment by the Investment Adviser.
The Expense Limitation Agreement is contractual through March 1, 2020 and shall renew automatically for one-year terms. Termination or modification of this obligation requires approval by the Board.
NOTE 6 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
The Fund has adopted a deferred compensation plan (the “DC Plan”), which allows eligible independent trustees, as described in the DC Plan, to defer the receipt of all or a portion of the trustees’ fees that they are entitled to receive from the Fund. For purposes of determining the amount owed to the trustee under the DC Plan, the amounts deferred are invested in shares of the “notional” funds selected by the trustee (the “Notional Funds”). The Fund purchases shares of the Notional Funds, which are all advised by Voya Investments, in amounts equal to the trustees’ deferred fees, resulting in a Fund asset equal to the deferred compensation liability. Such assets, if applicable, are included as a component of “Other assets” on the accompanying Statement of Assets and Liabilities. Deferral of trustees’ fees under the DC Plan will not affect net assets of the Fund, and will not materially affect the Fund’s assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the DC Plan.
17
NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2019 (UNAUDITED) (CONTINUED)
NOTE 7 — CAPITAL SHARES
For the period ended August 31, 2019 and year ended February 28, 2019, the Fund had no capital shares activity.
Share Repurchase Program
Effective April 1, 2019, pursuant to an open-market share repurchase program, the Fund may purchase, over the period ending March 31, 2020, up to 10% of its stock in open-market transactions. Previously, pursuant to an open-market share repurchase program effective April 1, 2018, the Fund may have purchased, over the period ended March 31, 2019, up to 10% of its stock in open-market transactions. The amount and timing of the repurchases will be at the discretion of the Fund’s management, subject to market conditions and investment considerations. There is no assurance that the Fund will purchase shares at any particular discount level or in any particular amounts. Any repurchases made under this program would be made on a national securities exchange at the prevailing market price, subject to exchange requirements and volume, timing and other limitations under federal securities laws. The share repurchase program seeks to enhance shareholder value by purchasing shares trading at a discount from their NAV per share.
For the period ended August 31, 2019 and the year ended February 28, 2019, the Fund had no repurchases.
NOTE 8 — FEDERAL INCOME TAXES
The amount of distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from GAAP for investment companies. These book/tax differences may be either temporary or permanent. Permanent differences are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences are not reclassified. Key differences include the treatment of short-term capital gains, foreign currency transactions, income from passive foreign investment companies (PFICs), and wash sale deferrals. Distributions in excess of net investment income and/or net realized capital gains for tax purposes are reported as return of capital.
Dividends paid by the Fund from net investment income and distributions of net realized short-term capital gains are, for federal income tax purposes, taxable as ordinary income to shareholders.
The Fund has a tax year-end of December 31. The amounts shown below are estimated as of August 31, 2019.
The tax composition of dividends and distributions to shareholders was as follows:
Six Months Ended
August 31, 2019 | | Year Ended
Feburary 28, 2019 |
|---|
Ordinary
Income | | Long-term
Capital Gain | | Ordinary
Income | | Long-term
Capital Gain |
|---|
| $6,537,881 | | $1,699,354 | | $7,474,163 | | $9,000,306 |
The tax-basis components of distributable earnings as of August 31, 2019 were:
Undistributed
Long-term
Capital Gains | | Unrealized
Appreciation/
(Depreciation) |
|---|
| $13,093,180 | | $2,306,857 |
At August 31, 2019, the Fund did not have any capital loss carryovers for U.S. federal income tax purposes.
The Fund’s major tax jurisdictions are U.S. federal and Arizona state.
As of August 31, 2019, no provision for income tax is required in the Fund’s financial statements as a result of tax positions taken on federal and state income tax returns for open tax years. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state department of revenue. Generally, the earliest tax year that remains subject to examination by these jurisdictions is 2014.
NOTE 9 — OTHER ACCOUNTING PRONOUNCEMENTS
The Fund has made a change in accounting principle and adopted the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Update 2017-08 (“ASU 2017-08”), Premium Amortization on Purchased Callable Debt Securities. ASU 2017-08 shortens the amortization period for certain callable debt securities held at a premium; specifically, requiring the premium to be amortized to the earliest call date. Prior to ASU 2017-08, premiums on callable debt securities were generally amortized to maturity date. ASU 2017-08 is intended to more closely align the amortization period with the expectations incorporated into the market pricing on the underlying security. ASU 2017-08 does not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity date. Upon evaluation, the Fund has concluded that the change in accounting principle does not materially impact the financial statement amounts.
Also, in August 2018, the FASB issued Accounting Standards Update 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement
18
NOTES TO FINANCIAL STATEMENTS AS OF AUGUST 31, 2019 (UNAUDITED) (CONTINUED)
NOTE 9 — OTHER ACCOUNTING PRONOUNCEMENTS (continued)
(“ASU 2018-13”). The update provides guidance that eliminates, adds and modifies certain disclosure requirements for fair value measurements. ASU 2018-13 will be effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. At this time, the Fund has elected to early adopt the amendments that allow for removal of disclosure requirements related to transfers between Level 1 and Level 2 of the fair value hierarchy and the timing of transfers between levels of the fair value hierarchy. These changes did not have a material impact on the Fund’s financial statements. The Fund plans to adopt the amendments that require additional fair value measurement disclosures for annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Fund is currently evaluating the impact of these changes on the financial statements.
NOTE 10 — SUBSEQUENT EVENTS
Dividends: Subsequent to August 31, 2019, the Fund made a distribution of:
Per Share
Amount | | Declaration
Date | | Payable
Date | | Record
Date |
|---|
| $0.197 | | 9/19/2019 | | 10/15/2019 | | 10/2/2019 |
Each quarter, the Fund will provide disclosures with distribution payments made that estimate the percentages of that distribution that represent net investment income, capital gains, and return of capital, if any. A significant portion of the quarterly distribution payments made by the Fund may constitute a return of capital.
Policy adoption: On September 12, 2019, the Board approved the adoption of a Managed Distribution Policy for this Fund.
Auditor Change: On September 12, 2019, KPMG LLP (“KPMG”) was dismissed as the independent registered public accounting firm to the Fund. The decision to change independent registered public accounting firms was recommended by the Audit Committee of the Board of Trustees of the Fund and was approved by the Board of Trustees of the Fund.
KPMG’s reports on the Fund’s financial statements for the fiscal years ended February 28, 2019 and February 28, 2018 contained no adverse opinion or disclaimer of opinion nor were they qualified or modified as to uncertainty, audit scope or accounting principle.
During the fiscal years ended February 28, 2019 and February 28, 2018 and during the subsequent interim period through September 12, 2019: (i) there were no disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of KPMG, would have caused KPMG to make reference to the subject matter of the disagreements in connection with its reports on the Fund’s financial statements for such periods; and (ii) there were no “reportable events” of the kind described in Item 304(a)(1)(v) of Regulation S-K under the Securities Exchange Act of 1934, as amended.
On September 12, 2019, the Audit Committee of the Board of Trustees and the Board of Trustees approved the selection of Ernst & Young LLP (“EY”) as the Fund’s independent registered public accounting firm for the fiscal year ending February 29, 2020. During the Fund’s fiscal years ended February 28, 2019 and February 28, 2018, and the subsequent interim period through September 12, 2019, neither the Fund, nor anyone on its behalf, consulted with EY on items which: (i) concerned the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on the Fund’s financial statements; or (ii) concerned the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K) or reportable events (as described in paragraph (a)(1)(v) of said Item 304).
The Fund has evaluated events occurring after the Statement of Assets and Liabilities date (“subsequent events”) to determine whether any subsequent events necessitated adjustment to or disclosure in the financial statements. Other than the above, no such subsequent events were identified.
19
VOYA GLOBAL ADVANTAGE AND
PREMIUM OPPORTUNITY FUND | SUMMARY PORTFOLIO OF INVESTMENTS
AS OF AUGUST 31, 2019 (UNAUDITED) |
| Shares | | | | | | | | | Value | | | | Percentage
of Net
Assets | |
|---|
| | | | | | | | | | | | | | | |
COMMON STOCK: 97.0% | | | | |
| | | Australia: 3.1% |
| 927,811 | | | | | | Other Securities | | $ | 6,306,184 | | | | 3.1 | |
| | | | | | | | | | | | | | | |
| | Belgium: 0.3% |
| 8,142 | | | | | | Other Securities | | | 608,530 | | | | 0.3 | |
| | | | | | | | | | | | | | | |
| | Canada: 4.6% |
| 13,833 | | | | | | Waste Connections, Inc. | | | 1,271,253 | | | | 0.7 | |
| 206,658 | | | | | | Other Securities | | | 8,026,537 | | | | 3.9 | |
| | | | | | | | | | 9,297,790 | | | | 4.6 | |
| | | | | | | | | | | | | | | |
| | China: 0.4% |
| 265,500 | | | | | | Other Securities | | | 892,936 | | | | 0.4 | |
| | | | | | | | | | | | | | | |
| | Denmark: 0.7% |
| 28,776 | | | | | | Novo Nordisk A/S | | | 1,499,298 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| | Finland: 0.6% |
| 30,766 | | | | | | Other Securities | | | 1,132,058 | | | | 0.6 | |
| | | | | | | | | | | | | | | |
| | France: 1.8% |
| 149,002 | | | | | | Other Securities | | | 3,612,266 | | | | 1.8 | |
| | | | | | | | | | | | | | | |
| | Germany: 1.5% |
| 191,425 | | | | | | Other Securities | | | 2,946,452 | | | | 1.5 | |
| | | | | | | | | | | | | | | |
| | Guernsey: 0.5% |
| 16,441 | | | | | | Other Securities | | | 1,064,390 | | | | 0.5 | |
| | | | | | | | | | | | | | | |
| | Hong Kong: 1.3% |
| 514,400 | | | | | | Other Securities | | | 2,617,606 | | | | 1.3 | |
| | | | | | | | | | | | | | | |
| | Israel: 0.3% |
| 85,898 | | | | | | Other Securities | | | 585,297 | | | | 0.3 | |
| | | | | | | | | | | | | | | |
| | Italy: 1.1% |
| 288,272 | | | | | | Other Securities | | | 2,321,334 | | | | 1.1 | |
| | | | | | | | | | | | | | | |
| | Japan: 7.7% |
| 651,797 | | | | | | Other Securities | | | 15,838,363 | | | | 7.7 | |
| | | | | | | | | | | | | | | |
| | Netherlands: 3.3% |
| 31,308 | | | | (1) | | ABN AMRO Bank NV | | | 555,253 | | | | 0.3 | |
| 47,017 | | | | | | Koninklijke Ahold Delhaize NV | | | 1,101,388 | | | | 0.5 | |
| 68,990 | | | | | | Koninklijke KPN NV | | | 218,512 | | | | 0.1 | |
| 73,211 | | | | | | Royal Dutch Shell PLC — Class A | | | 2,034,031 | | | | 1.0 | |
| 125,699 | | | | | | Other Securities | | | 2,756,216 | | | | 1.4 | |
| | | | | | | | | | 6,665,400 | | | | 3.3 | |
| | | | | | | | | | | | | | | |
| | New Zealand: 0.1% |
| 83,214 | | | | | | Other Securities | | | 231,663 | | | | 0.1 | |
| | | | | | | | | | | | | | | |
| | Norway: 0.7% |
| 87,616 | | | | | | Other Securities | | | 1,474,446 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| | Singapore: 0.7% |
| 654,000 | | | | | | Other Securities | | | 1,479,883 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| | Spain: 1.5% |
| 5,162 | | | | (1) | | Aena SME SA | | | 932,034 | | | | 0.4 | |
| 49,942 | | | | | | Ferrovial SA — FERE | | | 1,421,528 | | | | 0.7 | |
| Shares | | | | | | | | | Value | | | | Percentage
of Net
Assets | |
|---|
| | | | | | | | | | | | | | | |
COMMON STOCK: (continued) | | | | |
| | Spain: (continued) |
| 53,431 | | | | | | Other Securities | | $ | 796,791 | | | | 0.4 | |
| | | | | | | | | | 3,150,353 | | | | 1.5 | |
| | | | | | | | | | | | | | | |
| | Switzerland: 2.5% |
| 14,295 | | | | | | Nestle SA | | | 1,606,392 | | | | 0.8 | |
| 7,630 | | | | | | Roche Holding AG | | | 2,084,976 | | | | 1.0 | |
| 4,098 | | | | | | Zurich Insurance Group AG | | | 1,460,349 | | | | 0.7 | |
| | | | | | | | | | 5,151,717 | | | | 2.5 | |
| | | | | | | | | | | | | | | |
| | United Kingdom: 4.7% |
| 77,769 | | | | (1) | | Auto Trader Group PLC | | | 504,151 | | | | 0.2 | |
| 75,801 | | | | | | GlaxoSmithKline PLC | | | 1,579,641 | | | | 0.8 | |
| 2,361,163 | | | | | | Other Securities | | | 7,517,572 | | | | 3.7 | |
| | | | | | | | | | 9,601,364 | | | | 4.7 | |
| | | | | | | | | | | | | | | |
| | United States: 59.6% |
| 19,375 | | | | | | AbbVie, Inc. | | | 1,273,712 | | | | 0.6 | |
| 25,885 | | | | | | Aflac, Inc. | | | 1,298,909 | | | | 0.6 | |
| 6,937 | | | | | | Air Products & Chemicals, Inc. | | | 1,567,207 | | | | 0.8 | |
| 30,582 | | | | | | Altria Group, Inc. | | | 1,337,657 | | | | 0.7 | |
| 6,400 | | | | | | Amgen, Inc. | | | 1,335,168 | | | | 0.7 | |
| 61,934 | | | | | | AT&T, Inc. | | | 2,183,793 | | | | 1.1 | |
| 48,458 | | | | | | Bank of America Corp. | | | 1,333,080 | | | | 0.7 | |
| 18,979 | | | | | | Booz Allen Hamilton Holding Corp. | | | 1,433,104 | | | | 0.7 | |
| 27,153 | | | | | | Bristol-Myers Squibb Co. | | | 1,305,245 | | | | 0.6 | |
| 16,562 | | | | | | Chevron Corp. | | | 1,949,679 | | | | 1.0 | |
| 44,004 | | | | | | Cisco Systems, Inc. | | | 2,059,827 | | | | 1.0 | |
| 12,880 | | | | | | Eli Lilly & Co. | | | 1,455,054 | | | | 0.7 | |
| 21,070 | | | | | | Exxon Mobil Corp. | | | 1,442,874 | | | | 0.7 | |
| 24,217 | | | | | | General Mills, Inc. | | | 1,302,875 | | | | 0.6 | |
| 8,912 | | | | | | Hershey Co. | | | 1,412,374 | | | | 0.7 | |
| 10,272 | | | | | | Honeywell International, Inc. | | | 1,690,977 | | | | 0.8 | |
| 37,482 | | | | | | Intel Corp. | | | 1,777,022 | | | | 0.9 | |
| 12,547 | | | | | | International Business Machines Corp. | | | 1,700,495 | | | | 0.8 | |
| 21,246 | | | | | | Johnson & Johnson | | | 2,727,137 | | | | 1.3 | |
| 14,625 | | | | | �� | JPMorgan Chase & Co. | | | 1,606,702 | | | | 0.8 | |
| 6,891 | | | | | | McDonald’s Corp. | | | 1,502,031 | | | | 0.7 | |
| 26,325 | | | | | | Merck & Co., Inc. | | | 2,276,323 | | | | 1.1 | |
| 33,781 | | | | | | Microsoft Corp. | | | 4,657,049 | | | | 2.3 | |
| 33,959 | | | | | | Oracle Corp. | | | 1,767,905 | | | | 0.9 | |
| 15,347 | | | | | | Paychex, Inc. | | | 1,253,850 | | | | 0.6 | |
| 15,154 | | | | | | PepsiCo, Inc. | | | 2,072,006 | | | | 1.0 | |
| 54,361 | | | | | | Pfizer, Inc. | | | 1,932,534 | | | | 0.9 | |
| 20,353 | | | | | | Philip Morris International, Inc. | | | 1,467,248 | | | | 0.7 | |
| 18,383 | | | | | | Procter & Gamble Co. | | | 2,210,188 | | | | 1.1 | |
| 12,547 | | | | | | Quest Diagnostics, Inc. | | | 1,284,436 | | | | 0.6 | |
| 14,602 | | | | | | Republic Services, Inc. | | | 1,303,228 | | | | 0.6 | |
| 11,652 | | | | | | Royal Gold, Inc. | | | 1,554,144 | | | | 0.8 | |
| 14,849 | | | | | | Starbucks Corp. | | | 1,433,819 | | | | 0.7 | |
See Accompanying Notes to Financial Statements
20
VOYA GLOBAL ADVANTAGE AND
PREMIUM OPPORTUNITY FUND | SUMMARY PORTFOLIO OF INVESTMENTS
AS OF AUGUST 31, 2019 (UNAUDITED) (CONTINUED) |
| Shares | | | | | | | | | Value | | | | Percentage
of Net
Assets | |
|---|
| |
COMMON STOCK: (continued) |
| | United States: (continued) |
| 15,076 | | | | | | Texas Instruments, Inc. | | $ | 1,865,655 | | | | 0.9 | |
| 9,590 | | | | | | Total System Services, Inc. | | | 1,287,170 | | | | 0.6 | |
| 16,530 | | | | | | Tyson Foods, Inc. | | | 1,537,951 | | | | 0.8 | |
| 12,765 | | | | | | Waste Management, Inc. | | | 1,523,503 | | | | 0.7 | |
| 34,278 | | | | | | Wells Fargo & Co. | | | 1,596,326 | | | | 0.8 | |
| 57,204 | | | | | | Western Union Co. | | | 1,265,352 | | | | 0.6 | |
| 11,676 | | | | | | Yum! Brands, Inc. | | | 1,363,523 | | | | 0.7 | |
| 1,384,177 | | | | (2) | | Other Securities | | | 54,739,503 | | | | 26.7 | |
| | | | | | | | | | 122,086,635 | | | | 59.6 | |
| |
| | | | | | | Total Common Stock
(Cost $196,584,020) | | | 198,563,965 | | | | 97.0 | |
| |
EXCHANGE-TRADED FUNDS: 2.2% |
| 23,375 | | | | | | iShares MSCI EAFE ETF | | | 1,477,534 | | | | 0.7 | |
| 10,231 | | | | | | SPDR S&P 500 ETF Trust | | | 2,992,056 | | | | 1.5 | |
| | | | | | | Total Exchange-Traded Funds
(Cost $4,458,451) | | | 4,469,590 | | | | 2.2 | |
| | | | | | | Total Investments in Securities
(Cost $201,042,471) | | $ | 203,033,555 | | | | 99.2 | |
| | | | | | | Assets in Excess of Other Liabilities | | | 1,734,663 | | | | 0.8 | |
| | | | | | | Net Assets | | $ | 204,768,218 | | | | 100.0 | |
“Other Securities” represents issues not identified as the top 50 holdings in terms of market value and issues or issuers not exceeding 1% of net assets individually or in aggregate respectively as of August 31, 2019.
The following footnotes apply to either the individual securities noted or one or more of the securities aggregated and listed as a single line item.
| (1) | | Securities with purchases pursuant to Rule 144A or section 4(a)(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. |
| (2) | | The grouping contains non-income producing securities. |
| Sector Diversification | | | | Percentage
of Net Assets |
|---|
| Information Technology | | | | | 19.2 | % |
| Financials | | | | | 15.5 | |
| Industrials | | | | | 11.8 | |
| Health Care | | | | | 10.6 | |
| Consumer Staples | | | | | 10.4 | |
| Consumer Discretionary | | | | | 7.9 | |
| Communication Services | | | | | 6.6 | |
| Utilities | | | | | 5.2 | |
| Energy | | | | | 4.3 | |
| Materials | | | | | 3.3 | |
| Real Estate | | | | | 2.2 | |
| Exchange-Traded Funds | | | | | 2.2 | |
| Assets in Excess of Other Liabilities | | | | | 0.8 | |
Net Assets | | | | | 100.0 | % |
Fair Value Measurementsˆ
The following is a summary of the fair valuations according to the inputs used as of August 31, 2019 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
August 31, 2019 |
|---|
Asset Table | | | | | | | | | | | | | | | | | | |
Investments, at fair value | | | | | | | | | | | | | | | | | | |
| Common Stock | | | | | | | | | | | | | | | | | | |
| Australia | | | | $ | — | | | $ | 6,306,184 | | | $ | — | | | $ | 6,306,184 | |
| Belgium | | | | | — | | | | 608,530 | | | | — | | | | 608,530 | |
| Canada | | | | | 9,297,790 | | | | — | | | | — | | | | 9,297,790 | |
| China | | | | | — | | | | 892,936 | | | | — | | | | 892,936 | |
| Denmark | | | | | — | | | | 1,499,298 | | | | — | | | | 1,499,298 | |
| Finland | | | | | — | | | | 1,132,058 | | | | — | | | | 1,132,058 | |
| France | | | | | — | | | | 3,612,266 | | | | — | | | | 3,612,266 | |
| Germany | | | | | — | | | | 2,946,452 | | | | — | | | | 2,946,452 | |
| Guernsey | | | | | 1,064,390 | | | | — | | | | — | | | | 1,064,390 | |
| Hong Kong | | | | | — | | | | 2,617,606 | | | | — | | | | 2,617,606 | |
| Israel | | | | | — | | | | 585,297 | | | | — | | | | 585,297 | |
| Italy | | | | | — | | | | 2,321,334 | | | | — | | | | 2,321,334 | |
| Japan | | | | | — | | | | 15,838,363 | | | | — | | | | 15,838,363 | |
| Netherlands | | | | | — | | | | 6,665,400 | | | | — | | | | 6,665,400 | |
| New Zealand | | | | | — | | | | 231,663 | | | | — | | | | 231,663 | |
| Norway | | | | | — | | | | 1,474,446 | | | | — | | | | 1,474,446 | |
| Singapore | | | | | — | | | | 1,479,883 | | | | — | | | | 1,479,883 | |
| Spain | | | | | — | | | | 3,150,353 | | | | — | | | | 3,150,353 | |
| Switzerland | | | | | — | | | | 5,151,717 | | | | — | | | | 5,151,717 | |
See Accompanying Notes to Financial Statements
21
VOYA GLOBAL ADVANTAGE AND
PREMIUM OPPORTUNITY FUND | SUMMARY PORTFOLIO OF INVESTMENTS
AS OF AUGUST 31, 2019 (UNAUDITED) (CONTINUED) |
| | | | Quoted Prices
in Active Markets
for Identical
Investments
(Level 1) | | Significant
Other
Observable
Inputs#
(Level 2) | | Significant
Unobservable
Inputs
(Level 3) | | Fair Value
at
August 31, 2019 |
|---|
| Common Stock (continued) | | | | | | | | | | | | | | | | | | |
| United Kingdom | | | | $ | — | | | | $ | 9,601,364 | | | | $ | — | | | | $ | 9,601,364 | |
| United States | | | | | 122,086,635 | | | | | — | | | | | — | | | | | 122,086,635 | |
| Total Common Stock | | | | | 132,448,815 | | | | | 66,115,150 | | | | | — | | | | | 198,563,965 | |
| Exchange-Traded Funds | | | | | 4,469,590 | | | | | — | | | | | — | | | | | 4,469,590 | |
| Total Investments, at fair value | | | | $ | 136,918,405 | | | | $ | 66,115,150 | | | | $ | — | | | | $ | 203,033,555 | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | | | |
| Forward Foreign Currency Contracts | | | | | — | | | | | 621,684 | | | | | — | | | | | 621,684 | |
| Total Assets | | | | $ | 136,918,405 | | | | $ | 66,736,834 | | | | $ | — | | | | $ | 203,655,239 | |
Liabilities Table | | | | | | | | | | | | | | | | | | | | | |
Other Financial Instruments+ | | | | | | | | | | | | | | | | | | | | |
| Forward Foreign Currency Contracts | | | | $ | — | | | | $ | (319,646 | ) | | | $ | — | | | | $ | (319,646 | ) |
| Written Options | | | | | — | | | | | (1,577,998 | ) | | | | — | | | | | (1,577,998 | ) |
| Total Liabilities | | | | $ | — | | | | $ | (1,897,644 | ) | | | $ | — | | | | $ | (1,897,644 | ) |
| ˆ | | See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information. |
| + | | Other Financial Instruments 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. |
At August 31, 2019, the following forward foreign currency contracts were outstanding for Voya Global Advantage and Premium Opportunity Fund:
| Currency Purchased | | | | Currency Sold | | | Counterparty | | Settlement
Date | | Unrealized
Appreciation
(Depreciation) | |
|---|
| USD | 12,938,928 | | | | GBP | 10,600,000 | | | Citibank N.A. | | 10/04/19 | | $ | 23,439 | |
| USD | 16,284,668 | | | | JPY | 1,760,000,000 | | | Citibank N.A. | | 10/04/19 | | | (319,646 | ) |
| USD | 6,684,131 | | | | AUD | 9,700,000 | | | State Street Bank and Trust Co. | | 10/04/19 | | | 145,540 | |
| USD | 19,175,735 | | | | EUR | 17,100,000 | | | State Street Bank and Trust Co. | | 10/04/19 | | | 337,327 | |
| USD | 8,218,381 | | | | CAD | 10,800,000 | | | State Street Bank and Trust Co. | | 10/04/19 | | | 102,718 | |
| USD | 5,078,310 | | | | CHF | 5,000,000 | | | State Street Bank and Trust Co. | | 10/04/19 | | | 12,556 | |
| USD | 13,281 | | | | EUR | 11,989 | | | The Bank of New York Mellon | | 09/03/19 | | | 104 | |
| | | | | | | | | | | | | | $ | 302,038 | |
At August 31, 2019, the following OTC written equity options were outstanding for Voya Global Advantage and Premium Opportunity Fund:
| Description | | | | Counterparty | | Put/Call | | Expiration
Date | | | Exercise
Price | | | | Number of
Contracts | | | | Notional
Amount | | | Premiums
Received | | | Fair Value | |
|---|
| EURO STOXX 50® Index | | | | BNP Paribas | | Call | | 09/13/19 | | | EUR 3,409.880 | | | | 1,037 | | | | EUR 3,553,550 | | | $ | 60,676 | | | $ | (58,737 | ) |
|---|
| EURO STOXX 50® Index | | | | Morgan Stanley & Co.
International PLC | | Call | | 09/13/19 | | | EUR 3,362.370 | | | | 2,013 | | | | EUR 6,898,068 | | | | 110,750 | | | | (184,463 | ) |
| FTSE 100 Index | | | | Morgan Stanley & Co.
International PLC | | Call | | 09/13/19 | | | GBP 7,188.320 | | | | 969 | | | | GBP 6,983,757 | | | | 92,146 | | | | (96,164 | ) |
| FTSE 100 Index | | | | Societe Generale | | Call | | 09/13/19 | | | GBP 7,481.130 | | | | 486 | | | | GBP 3,502,689 | | | | 36,302 | | | | (1,522 | ) |
| Nikkei 225 Index | | | | Morgan Stanley & Co.
International PLC | | Call | | 09/27/19 | | | JPY 20,567.800 | | | | 57,454 | | | | JPY 1,189,548,874 | | | | 171,671 | | | | (183,569 | ) |
| S&P 500® Index | | | | Barclays Bank PLC | | Call | | 09/13/19 | | | USD 2,961.370 | | | | 3,854 | | | | USD 11,278,577 | | | | 168,936 | | | | (66,312 | ) |
| S&P 500® Index | | | | Barclays Bank PLC | | Call | | 09/27/19 | | | USD 2,917.570 | | | | 7,547 | | | | USD 22,085,994 | | | | 379,335 | | | | (432,240 | ) |
| S&P 500® Index | | | | Barclays Bank PLC | | Call | | 10/11/19 | | | USD 2,955.720 | | | | 11,721 | | | | USD 34,301,038 | | | | 554,991 | | | | (554,991 | ) |
| | | | | | | | | | | | | | | | | | | | | | | $ | 1,574,807 | | | $ | (1,577,998 | ) |
Currency Abbreviations
AUD — Australian Dollar
CAD — Canadian Dollar
CHF — Swiss Franc
EUR — EU Euro
GBP — British Pound
JPY — Japanese Yen
USD — United States Dollar
See Accompanying Notes to Financial Statements
22
VOYA GLOBAL ADVANTAGE AND
PREMIUM OPPORTUNITY FUND | SUMMARY PORTFOLIO OF INVESTMENTS
AS OF AUGUST 31, 2019 (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 August 31, 2019 was as follows:
Derivatives not accounted for as
hedging instruments | | | | Location on Statement
of Assets and Liabilities | | Fair Value | |
|---|
Asset Derivatives | | | | | | | | |
| Foreign exchange contracts | | | | Unrealized appreciation on forward foreign currency contracts | | $ | 621,684 | |
Total Asset Derivatives | | | | | | $ | 621,684 | |
Liability Derivatives | | | | | | | | |
| Foreign exchange contracts | | | | Unrealized depreciation on forward foreign currency contracts | | $ | 319,646 | |
| Equity contracts | | | | Written options, at fair value | | | 1,577,998 | |
Total Liability Derivatives | | | | | | $ | 1,897,644 | |
The effect of derivative instruments on the Fund’s Statement of Operations for the period ended August 31, 2019 was as follows:
| | | | Amount of Realized Gain or (Loss) on
Derivatives Recognized in Income |
|---|
Derivatives not accounted for as
hedging instruments | | | | Forward foreign
currency contracts | | Futures | | Written options | | Total |
|---|
| Equity contracts | | | | | $ | — | | | | $ | (1,075,380 | ) | | | $ | — | | | | $ | (1,075,380 | ) |
| Foreign exchange contracts | | | | | | 2,231,480 | | | | | — | | | | | (2,285,231 | ) | | | | (53,751 | ) |
| Total | | | | | $ | 2,231,480 | | | | $ | (1,075,380 | ) | | | $ | (2,285,231 | ) | | | $ | (1,129,131 | ) |
| | | | Change in Unrealized Appreciation or (Depreciation) on
Derivatives Recognized in Income |
|---|
Derivatives not accounted for as
hedging instruments | | | | Forward foreign
currency contracts | | Futures | | Written options | | Total |
|---|
| Equity contracts | | | | | $ | — | | | | $ | 866,889 | | | | $ | 1,012,548 | | | | $ | 1,879,437 | |
| Foreign exchange contracts | | | | | | 231,691 | | | | | — | | | | | — | | | | | 231,691 | |
Total | | | | | $ | 231,691 | | | | $ | 866,889 | | | | $ | 1,012,548 | | | | $ | 2,111,128 | |
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 August 31, 2019:
| | | Barclays
Bank PLC | | BNP
Paribas | | Citibank
N.A. | | Morgan
Stanley & Co.
International PLC | | Societe
Generale | | State Street
Bank and
Trust Co. | | The Bank of
New York
Mellon | | Totals |
|---|
| Assets: | | | | | |
|---|
| Forward foreign currency contracts | | | | $ | — | | | $ | — | | | $ | 23,439 | | | $ | — | | | $ | — | | | $ | 598,141 | | | $ | 104 | | | $ | 621,684 | |
Total Assets | | | | $ | — | | | $ | — | | | $ | 23,439 | | | $ | — | | | $ | — | | | $ | 598,141 | | | $ | 104 | | | $ | 621,684 | |
Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Forward foreign currency contracts | | | | $ | — | | | $ | — | | | $ | 319,646 | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 319,646 | |
| Written options | | | | | 1,053,543 | | | | 58,737 | | | | — | | | | 464,196 | | | | 1,522 | | | | — | | | | — | | | | 1,577,998 | |
Total Liabilities | | | | $ | 1,053,543 | | | $ | 58,737 | | | $ | 319,646 | | | $ | 464,196 | | | $ | 1,522 | | | $ | — | | | $ | — | | | $ | 1,897,644 | |
Net OTC derivative instruments by
counterparty, at fair value | | | | $ | (1,053,543 | ) | | $ | (58,737 | ) | | $ | (296,207 | ) | | $ | (464,196 | ) | | $ | (1,522 | ) | | $ | 598,141 | | | $ | 104 | | | $ | (1,275,960 | ) |
Total collateral pledged by the Fund/ (Received from counterparty) | | | | $ | — | | | $ | — | | | $ | — | | | $ | 400,000 | | | $ | — | | | $ | — | | | $ | — | | | $ | 400,000 | |
Net Exposure(1) | | | | $ | (1,053,543 | ) | | $ | (58,737 | ) | | $ | (296,207 | ) | | $ | (64,196 | ) | | $ | (1,522 | ) | | $ | 598,141 | | | $ | 104 | | | $ | (875,960 | ) |
(1) | | Positive net exposure represents amounts due from each respective counterparty. Negative exposure represents amounts due from the Fund. Please refer to Note 2 for additional details regarding counterparty credit risk and credit related contingent features. |
At August 31, 2019, the aggregate cost of securities and other investments and the composition of unrealized appreciation and depreciation of securities and other investments at period end were:
| | Cost for federal income tax purposes was $199,508,076. |
| Net unrealized appreciation consisted of: | | | | | | |
| Gross Unrealized Appreciation | | | | $ | 13,187,561 | |
| Gross Unrealized Depreciation | | | | | (10,880,704 | ) |
| Net Unrealized Appreciation | | | | $ | 2,306,857 | |
See Accompanying Notes to Financial Statements
23
SHAREHOLDER MEETING INFORMATION (UNAUDITED)
Proposal:
| 1 | | At this meeting, a proposal was submitted to elect four members of the Board of Trustees to represent the interests of the holders of the Fund, with all four individuals to serve as Class II Trustees, for a term of three-years, and until the election and qualification of their successors. |
An annual shareholder meeting of Voya Global Advantage and Premium Opportunity Fund was held July 9, 2019, at the offices of Voya Investment Management, 7337 East Doubletree Ranch Road, Suite 100, Scottsdale, AZ 85258.
| | | | | | Proposal | | Shares voted for | | Shares voted
against or
withheld | | Shares
abstained | | Broker
non-vote | | Total Shares
Voted |
|---|
| Class II Trustees | | | | Voya Global Advantage and Premium Opportunity Fund | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | John V. Boyer | | | 1 | * | | | 16,232,744.318 | | | | 539,828.000 | | | | 0.000 | | | | 0.000 | | | | 16,772,572.318 | |
| | | | | Patricia W. Chadwick | | | 1 | * | | | 16,212,992.318 | | | | 559,580.000 | | | | 0.000 | | | | 0.000 | | | | 16,772,572.318 | |
| | | | | Sheryl K. Pressler | | | 1 | * | | | 16,222,700.318 | | | | 549,872.000 | | | | 0.000 | | | | 0.000 | | | | 16,772,572.318 | |
| | | | | Christopher P. Sullivan | | | 1 | * | | | 16,252,781.318 | | | | 519,791.000 | | | | 0.000 | | | | 0.000 | | | | 16,772,572.318 | |
After the July 9, 2019 annual shareholder meeting, the following Trustees continued on as Trustees of the Trust: Colleen D. Baldwin, Martin J. Gavin, Russell H. Jones, Joseph E. Obermeyer, Roger B. Vincent and Dina Santoro.
24
ADDITIONAL INFORMATION (UNAUDITED)
During the period, there were no material changes in the Fund’s investment objective or policies or in the principal risk factors associated with investment in the Fund. Effective May 21, 2019, the Fund transitioned to a dividend focused quantitative strategy in selecting equity investments for the Fund. Effective May 6, 2019, Paul Zemsky, Vincent Costa, Peg DiOrio, and Steve Wetter were added as portfolio managers of the Fund and Jeffrey Meys, Tjeerd van Cappelle and Willem van Dommelen were removed as portfolio managers of the Fund.
The Fund may lend portfolio securities in an amount equal to up to 33 1/3% of its managed assets to broker dealers or other institutional borrowers, in exchange for cash collateral and fees. The Fund may use the cash collateral in connection with the Fund’s investment program as approved by the Investment Adviser, including generating cash to cover collateral posting requirements. Although the Fund has no current intention to do so, it may use the cash collateral to generate additional income. The use of cash collateral in connection with the Fund’s investment program may have a leveraging effect on the Fund, which would increase the volatility of the Fund and could reduce its returns and/or cause a loss.
The Fund intends to engage in lending portfolio securities only when such lending is secured by cash or other permissible collateral in an amount at least equal to the market value of the securities loaned. The Fund will maintain cash, cash equivalents or liquid securities holdings in an amount sufficient to cover its repayment obligation with respect to the collateral, marked to market on a daily basis.
Securities lending involves the risks of delay in recovery or even loss of rights in the securities loaned if the borrower of the securities fails financially. Loans will be made only to organizations whose credit quality or claims paying ability is considered by the sub-advisers to be at least investment grade. The financial condition of the borrower will be monitored by the Investment Adviser on an ongoing basis. The Fund will not lend portfolio securities subject to a written American style covered call option contract. The Fund may lend portfolio securities subject to a written European style covered call option contract as long as the lending period is less than or equal to the term of the covered call option contract.
The Fund was granted exemptive relief by the SEC (the “Order”) which, under the 1940 Act, would permit the Fund, subject to Board approval, to include realized long-term capital gains as a part of its regular distributions to Common Shareholders more frequently than would otherwise be permitted by the 1940 Act (generally once per taxable year) (“Managed Distribution Policy”). On September 12, 2019, the Board approved the adoption of a Managed Distribution Policy for this Fund.
Dividend Reinvestment Plan
Unless the registered owner of Common Shares elects to receive cash by contacting Computershare Shareowner Services LLC (the “Plan Agent”), all dividends declared on Common Shares of the Fund will be automatically reinvested by the Plan Agent for shareholders in additional Common Shares of the Fund through the Fund’s Dividend Reinvestment Plan (the “Plan”). Shareholders who elect not to participate in the Plan will receive all dividends and other distributions in cash paid by check mailed directly to the shareholder of record (or, if the Common Shares are held in street or other nominee name, then to such nominee) by the Plan Agent. Participation in the Plan is completely voluntary and may be terminated or resumed at any time without penalty by notice if received and processed by the Plan Agent prior to the dividend record date; otherwise such termination or resumption will be effective with respect to any subsequently declared dividend or other distribution. Some brokers may automatically elect to receive cash on your behalf and may re-invest that cash in additional Common Shares of the Fund for you. If you wish for all dividends declared on your Common Shares of the Fund to be automatically reinvested pursuant to the Plan, please contact your broker.
The Plan Agent will open an account for each Common Shareholder under the Plan in the same name in which such Common Shareholder’s Common Shares are registered. Whenever the Fund declares a dividend or other distribution (together, a “Dividend”) payable in cash, non-participants in the Plan will receive cash and participants in the Plan will receive the equivalent in Common Shares. The Common Shares will be acquired by the Plan Agent for the participants’ accounts, depending upon the circumstances described below, either (i) through receipt of additional unissued but authorized Common Shares from the Fund (“Newly Issued Common Shares”) or (ii) by purchase of outstanding Common Shares on the open market (“Open-Market Purchases”) on the NYSE or elsewhere. Open-market purchases and sales are usually made through a broker affiliated with the Plan Agent.
If, on the payment date for any Dividend, the closing market price plus estimated brokerage commissions per Common Share is equal to or greater than the NAV per Common Share, the Plan Agent will invest the Dividend amount in Newly Issued Common Shares on behalf of the participants. The number of Newly Issued Common Shares to be credited to each participant’s account will be determined by dividing the dollar amount of the Dividend by the NAV per Common Share on the payment date; provided that, if the NAV is less than or equal to 95% of the closing market value on the payment date, the dollar amount of the Dividend will be divided by 95% of the closing market price per Common Share on the payment date. If,
25
ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED)
on the payment date for any Dividend, the NAV per Common Share is greater than the closing market value plus estimated brokerage commissions, the Plan Agent will invest the Dividend amount in Common Shares acquired on behalf of the participants in Open-Market Purchases. In the event of a market discount on the payment date for any Dividend, the Plan Agent will have until the last business day before the next date on which the Common Shares trade on an “ex-dividend” basis or 30 days after the payment date for such Dividend, whichever is sooner (the “Last Purchase Date”), to invest the Dividend amount in Common Shares acquired in Open-Market Purchases.
The Fund pays quarterly Dividends. Therefore, the period during which Open-Market Purchases can be made will exist only from the payment date of each Dividend through the date before the next “ex-dividend” date, which typically will be approximately ten days.
If, before the Plan Agent has completed its Open-Market Purchases, the market price per common share exceeds the NAV per Common Share, the average per Common Share purchase price paid by the Plan Administrator may exceed the NAV of the Common Shares, resulting in the acquisition of fewer Common Shares than if the Dividend had been paid in Newly Issued Common Shares on the Dividend payment date. Because of the foregoing difficulty with respect to Open-Market Purchases, the Plan provides that if the Plan Agent is unable to invest the full Dividend amount in Open-Market Purchases during the purchase period or if the market discount shifts to a market premium during the purchase period, the Plan Agent will cease making Open-Market Purchases and will invest the un-invested portion of the Dividend amount in Newly Issued Common Shares at the NAV per common share at the close of business on the Last Purchase Date provided that, if the NAV is less than or equal to 95% of the then current market price per Common Share, the dollar amount of the Dividend will be divided by 95% of the market price on the payment date.
The Plan Agent maintains all shareholders’ accounts in the Plan and furnishes written confirmation of all transactions in the accounts, including information needed by shareholders for tax records. Common Shares in the account of each Plan participant will be held by the Plan Agent on behalf of the Plan participant, and each shareholder proxy will include those shares purchased or received pursuant to the Plan. The Plan Agent will forward all proxy solicitation materials to participants and vote proxies for shares held under the Plan in accordance with the instructions of the participants.
In the case of shareholders such as banks, brokers or nominees which hold shares for others who are the beneficial owners, the Plan Agent will administer the Plan on the basis of the number of Common Shares certified
from time to time by the record shareholder’s name and held for the account of beneficial owners who participate in the Plan.
There will be no brokerage charges with respect to Common Shares issued directly by the Fund. However, each participant will pay a pro rata share of brokerage commissions incurred in connection with Open-Market Purchases. The automatic reinvestment of Dividends will not relieve participants of any federal, state or local income tax that may be payable (or required to be withheld) on such Dividends. Participants that request a partial or full sale of shares through the Plan Agent are subject to a $15.00 sales fee and a $0.10 per share brokerage commission on purchases or sales, and may be subject to certain other service charges.
The Fund reserves the right to amend or terminate the Plan. There is no direct service charge to participants with regard to purchases in the Plan; however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants.
All questions concerning the Plan or a request to terminate participation should be directed to the Fund’s Shareholder Service Department at (800) 992-0180.
KEY FINANCIAL DATES — CALENDAR 2019 DISTRIBUTIONS:
| Declaration Date | | | | Ex Date | | Record Date | | Payable Date |
|---|
| 20-Mar-19 | | | | | 1-Apr-19 | | | | 2-Apr-19 | | | | 15-Apr-19 | |
| 17-Jun-19 | | | | | 1-Jul-19 | | | | 2-Jul-19 | | | | 15-Jul-19 | |
| 16-Sep-19 | | | | | 1-Oct-19 | | | | 2-Oct-19 | | | | 15-Oct-19 | |
| 16-Dec-19 | | | | | 30-Dec-19 | | | | 31-Dec-19 | | | | 15-Jan-20 | |
Record date will be two business days after each Ex-Dividend Date. These dates are subject to change.
Stock Data
The Fund’s common shares are traded on the NYSE (Symbol: IGA).
Repurchase of Securities by Closed-End Companies
In accordance with Section 23(c) of the 1940 Act, and Rule 23c-1 under the 1940 Act, the Fund may from time to time purchase shares of beneficial interest of the Fund in the open market, in privately negotiated transactions and/or purchase shares to correct erroneous transactions.
Number of Shareholders
The number of record holders of common stock as of August 31, 2019 was 12, which does not include approximately 7,286 beneficial owners of shares held in the name of brokers of other nominees.
26
ADDITIONAL INFORMATION (UNAUDITED) (CONTINUED)
Certifications
In accordance with Section 303A.12 (a) of the New York Stock Exchange Listed Company Manual, the Fund’s CEO submitted the Annual CEO Certification on August 1, 2019 certifying that he was not aware, as of that date, of any violation by the Fund of the NYSE’s Corporate governance listing standards. In addition, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and related SEC rules, the Fund’s principal executive and financial officers have made quarterly certifications, included in filings with the SEC on Form N-CSR, relating to, among other things, the Fund’s disclosure controls and procedures and internal controls over financial reporting.
27
Investment Adviser
Voya Investments, LLC
7337 East Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
Transfer Agent
Computershare, Inc.
480 Washington Boulevard
Jersey City, New Jersey 07310-1900
Custodian
The Bank of New York Mellon
225 Liberty Street
New York, New York 10286
Legal Counsel
Ropes & Gray LLP
Prudential Tower
800 Boylston Street
Boston, Massachusetts 02199
Toll-Free Shareholder Information
Call us from 9:00 a.m. to 7:00 p.m. Eastern time on any business day for account or other information at (800) 992-0180.
RETIREMENT | INVESTMENTS | INSURANCE
voyainvestments.com | 
163318 (0819-102419) |
Item 2. Code of Ethics.
Not required for semi-annual filing.
Item 3. Audit Committee Financial Expert.
Not required for semi-annual filing.
Item 4. Principal Accountant Fees and Services.
Not required for semi-annual filing.
Item 5. Audit Committee of Listed Registrants.
Not required for semi-annual filing.
Item 6. Schedule of Investments.
Complete schedule of investments filed herein.
| Voya Global Advantage and Premium Opportunity Fund | PORTFOLIO OF INVESTMENTS
as of August 31, 2019 (Unaudited) |
| Shares | | | | | | | Value | | | Percentage
of Net
Assets | |
| COMMON STOCK: 97.0% | |
| | | | | | Australia: 3.1% |
| | 73,139 | | | | | AGL Energy Ltd. | | $ | 932,367 | | | | 0.5 | |
| | 233,716 | | | | | Aurizon Holdings Ltd. | | | 929,193 | | | | 0.5 | |
| | 40,772 | | | | | BHP Group Ltd. | | | 1,000,847 | | | | 0.5 | |
| | 35,825 | | | | | Coca-Cola Amatil Ltd. | | | 262,095 | | | | 0.1 | |
| | 31,734 | | | | | Computershare Ltd. | | | 328,801 | | | | 0.2 | |
| | 49,391 | | | | | Crown Resorts Ltd. | | | 399,721 | | | | 0.2 | |
| | 3,343 | | | | | Macquarie Group Ltd. | | | 278,698 | | | | 0.1 | |
| | 33,991 | | | | | Newcrest Mining Ltd. | | | 849,561 | | | | 0.4 | |
| | 12,862 | | | | | Sonic Healthcare Ltd. | | | 254,608 | | | | 0.1 | |
| | 325,843 | | | | | South32 Ltd. - AUD | | | 575,782 | | | | 0.3 | |
| | 87,195 | | | | | Sydney Airport | | | 494,511 | | | | 0.2 | |
| | | | | | | | | | 6,306,184 | | | | 3.1 | |
| | | | | | | | | | | | | | | |
| | | | | | | Belgium: 0.3% | | | | | | | | |
| | 8,142 | | | | | UCB S.A. | | | 608,530 | | | | 0.3 | |
| | | | | | | | | | | | | | | |
| | | | | | | Canada: 4.6% | | | | | | | | |
| | 12,465 | | | | | Bank of Nova Scotia | | | 662,853 | | | | 0.3 | |
| | 25,544 | | | | | BCE, Inc. | | | 1,208,707 | | | | 0.6 | |
| | 15,218 | | | | | Canadian Imperial Bank of Commerce - XTSE | | | 1,178,784 | | | | 0.6 | |
| | 25,594 | | | | | CI Financial Corp. | | | 366,782 | | | | 0.2 | |
| | 16,426 | | | | | Empire Co. Ltd. | | | 453,152 | | | | 0.2 | |
| | 22,342 | | | | | Great-West Lifeco, Inc. | | | 476,240 | | | | 0.3 | |
| | 6,060 | | | | | iA Financial Corp., Inc. | | | 252,022 | | | | 0.1 | |
| | 5,265 | | | | | Kirkland Lake Gold Ltd. | | | 256,013 | | | | 0.1 | |
| | 22,997 | | | | | National Bank Of Canada | | | 1,079,895 | | | | 0.5 | |
| | 19,714 | | | | | Open Text Corp. | | | 771,295 | | | | 0.4 | |
| | 3,895 | | | | | Rogers Communications, Inc. | | | 192,819 | | | | 0.1 | |
| | 31,138 | | | | | TELUS Corp. | | | 1,127,975 | | | | 0.6 | |
| | 13,833 | | | | | Waste Connections, Inc. | | | 1,271,253 | | | | 0.6 | |
| | | | | | | | | | 9,297,790 | | | | 4.6 | |
| | | | | | | | | | | | | | | |
| | | | | | | China: 0.4% | | | | | | | | |
| | 265,500 | | | | | BOC Hong Kong Holdings Ltd. | | | 892,936 | | | | 0.4 | |
| | | | | | | | | | | | | | | |
| | | | | | | Denmark: 0.7% | | | | | | | | |
| | 28,776 | | | | | Novo Nordisk A/S | | | 1,499,298 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| | | | | | | Finland: 0.6% | | | | | | | | |
| | 2,163 | | | | | Nordea Bank Abp | | | 13,528 | | | | 0.0 | |
| | 6,973 | | | | | Orion Oyj | | | 259,150 | | | | 0.2 | |
| | 21,630 | | | | | Sampo OYJ | | | 859,380 | | | | 0.4 | |
| | | | | | | | | | 1,132,058 | | | | 0.6 | |
| | | | | | | | | | | | | | | |
| | | | | | | France: 1.8% | | | | | | | | |
| | 17,346 | | | | | Alstom SA | | | 741,650 | | | | 0.4 | |
| | 9,900 | | | | | Edenred | | | 482,070 | | | | 0.2 | |
| | 2,401 | | | | | Eiffage SA | | | 248,799 | | | | 0.1 | |
| | 26,884 | | | | | Getlink SE | | | 378,290 | | | | 0.2 | |
| | 68,314 | | | | | Orange SA | | | 1,037,919 | | | | 0.5 | |
| | 2,903 | | | | | Societe BIC S.A. | | | 185,502 | | | | 0.1 | |
| | 21,254 | | | | | Societe Generale | | | 538,036 | | | | 0.3 | |
| | | | | | | | | | 3,612,266 | | | | 1.8 | |
| | | | | | | | | | | | | | | |
| | | | | | | Germany: 1.5% | | | | | | | | |
| | 1,923 | | | | | Allianz SE | | | 424,412 | | | | 0.2 | |
| | 17,083 | | | | | Deutsche Lufthansa AG | | | 263,305 | | | | 0.1 | |
| | 31,311 | | | | | Deutsche Post AG | | | 1,027,486 | | | | 0.5 | |
| | 7,463 | | | | | SAP SE | | | 890,910 | | | | 0.5 | |
| | 133,645 | | | | | Telefonica Deutschland Holding AG | | | 340,339 | | | | 0.2 | |
| | | | | | | | | | 2,946,452 | | | | 1.5 | |
| | | | | | | | | | | | | | | |
| | | | | | | Guernsey: 0.5% | | | | | | | | |
| | 16,441 | | | | | Amdocs Ltd. | | | 1,064,390 | | | | 0.5 | |
| | | | | | | | | | | | | | | |
| | | | | | | Hong Kong: 1.3% | | | | | | | | |
| | 127,500 | | | | | CK Hutchison Holdings Ltd. | | | 1,108,336 | | | | 0.6 | |
| | 255,000 | | | | | HKT Trust / HKT Ltd. | | | 398,345 | | | | 0.2 | |
| | 4,900 | | | | | Jardine Matheson Holdings Ltd. | | | 266,450 | | | | 0.1 | |
| | 127,000 | | | | | Power Assets Holdings Ltd. | | | 844,475 | | | | 0.4 | |
| | | | | | | | | | 2,617,606 | | | | 1.3 | |
| | | | | | | | | | | | | | | |
| | | | | | | Israel: 0.3% | | | | | | | | |
| | 85,898 | | | | | Bank Leumi Le-Israel BM | | | 585,297 | | | | 0.3 | |
| | | | | | | | | | | | | | | |
| | | | | | | Italy: 1.1% | | | | | | | | |
| | 65,572 | | | | | Assicurazioni Generali S.p.A. | | | 1,191,929 | | | | 0.6 | |
| | 222,700 | | | | | Snam SpA | | | 1,129,405 | | | | 0.5 | |
| | | | | | | | | | 2,321,334 | | | | 1.1 | |
| | | | | | | | | | | | | | | |
| | | | | | | Japan: 7.7% | | | | | | | | |
| | 8,700 | | | | | Alfresa Holdings Corp. | | | 196,777 | | | | 0.1 | |
| | 33,900 | | | | | Canon, Inc. | | | 878,877 | | | | 0.4 | |
| | 4,400 | | | | | Central Japan Railway Co. | | | 869,989 | | | | 0.4 | |
| | 24,900 | | | | | Fuji Film Holdings Corp. | | | 1,064,983 | | | | 0.5 | |
| | 30,406 | | | | | Japan Airlines Co. Ltd. | | | 949,020 | | | | 0.5 | |
| | 85,900 | | | | | Japan Post Holdings Co. Ltd. | | | 780,582 | | | | 0.4 | |
| | 14,000 | | | | | Kamigumi Co., Ltd. | | | 327,855 | | | | 0.2 | |
| | 9,400 | | | | | Konami Holdings Corp. | | | 425,963 | | | | 0.2 | |
| | 4,300 | | | | | Kyocera Corp. | | | 255,215 | | | | 0.1 | |
| | 24,400 | | | | | Kyushu Railway Co. | | | 731,635 | | | | 0.4 | |
| | 10,016 | | | | | Medipal Holdings Corp. | | | 212,606 | | | | 0.1 | |
| | 5,900 | | | | | MEIJI Holdings Co., Ltd. | | | 409,598 | | | | 0.2 | |
| | 10,729 | | | | | Mitsubishi Corp. | | | 260,941 | | | | 0.1 | |
| | 70,900 | | | | | Mitsui & Co., Ltd. | | | 1,109,167 | | | | 0.5 | |
| | 9,800 | | | | | MS&AD Insurance Group Holdings, Inc. | | | 311,054 | | | | 0.2 | |
| | 9,000 | | | | | Nippon Electric Glass Co., Ltd. | | | 186,473 | | | | 0.1 | |
| | 16,900 | | | | | Nippon Telegraph & Telephone Corp. | | | 810,150 | | | | 0.4 | |
| | 48,100 | | | | | NTT Docomo, Inc. | | | 1,213,365 | | | | 0.6 | |
| | 55,200 | | | | | ORIX Corp. | | | 814,481 | | | | 0.4 | |
| | 7,800 | | | | | Sankyo Co., Ltd. | | | 269,839 | | | | 0.1 | |
| | 58,500 | | | | | Sekisui House Ltd. | | | 1,037,540 | | | | 0.5 | |
| | 76,806 | | | | | Sumitomo Corp. | | | 1,151,166 | | | | 0.6 | |
| | 11,300 | | | | | Sumitomo Mitsui Financial Group, Inc. | | | 370,281 | | | | 0.2 | |
| | 15,000 | | | | | Sundrug Co., Ltd. | | | 466,281 | | | | 0.2 | |
| | 5,300 | | | | | Suzuken Co., Ltd. | | | 284,557 | | | | 0.1 | |
| | 240 | | | | | United Urban Investment Corp. | | | 449,968 | | | | 0.2 | |
| | | | | | | | | | 15,838,363 | | | | 7.7 | |
| Voya Global Advantage and Premium Opportunity Fund | PORTFOLIO OF INVESTMENTS
as of August 31, 2019 (Unaudited)
(Continued) |
| Shares | | | | | | | Value | | | Percentage
of Net
Assets | |
| | | | | | | Netherlands: 3.3% | | | | | | | | |
| | 31,308 | | | (1) | | ABN AMRO Bank NV | | | 555,253 | | | | 0.3 | |
| | 80,656 | | | | | ING Groep NV | | | 770,559 | | | | 0.4 | |
| | 47,017 | | | | | Koninklijke Ahold Delhaize NV | | | 1,101,388 | | | | 0.5 | |
| | 68,990 | | | | | Koninklijke KPN NV | | | 218,512 | | | | 0.1 | |
| | 28,353 | | | | | NN Group NV | | | 950,074 | | | | 0.5 | |
| | 73,211 | | | | | Royal Dutch Shell PLC - Class A | | | 2,034,032 | | | | 1.0 | |
| | 16,690 | | | | | Unilever NV | | | 1,035,582 | | | | 0.5 | |
| | | | | | | | | | 6,665,400 | | | | 3.3 | |
| | | | | | | | | | | | | | | |
| | | | | | | New Zealand: 0.1% | | | | | | | | |
| | 83,214 | | | | | Spark New Zealand Ltd. | | | 231,663 | | | | 0.1 | |
| | | | | | | | | | | | | | | |
| | | | | | | Norway: 0.7% | | | | | | | | |
| | 37,920 | | | | | Mowi ASA | | | 907,073 | | | | 0.4 | |
| | 39,833 | | | | | Orkla ASA | | | 364,948 | | | | 0.2 | |
| | 9,863 | | | | | Telenor ASA | | | 202,425 | | | | 0.1 | |
| | | | | | | | | | 1,474,446 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| | | | | | | Singapore: 0.7% | | | | | | | | |
| | 229,300 | | | | | ComfortDelgro Corp., Ltd. | | | 404,477 | | | | 0.2 | |
| | 64,500 | | | | | SATS Ltd. | | | 222,997 | | | | 0.1 | |
| | 74,400 | | | | | Singapore Exchange Ltd. | | | 439,209 | | | | 0.2 | |
| | 103,800 | | | | | Singapore Technologies Engineering Ltd. | | | 294,203 | | | | 0.1 | |
| | 182,000 | | | | | Yangzijiang Shipbuilding Holdings Ltd. | | | 118,997 | | | | 0.1 | |
| | | | | | | | | | 1,479,883 | | | | 0.7 | |
| | | | | | | | | | | | | | | |
| | | | | | | Spain: 1.5% | | | | | | | | |
| | 5,162 | | | (1) | | Aena SME SA | | | 932,034 | | | | 0.4 | |
| | 28,706 | | | | | Enagas | | | 625,016 | | | | 0.3 | |
| | 49,942 | | | | | Ferrovial SA - FERE | | | 1,421,528 | | | | 0.7 | |
| | 24,725 | | | | | Telefonica S.A. | | | 171,775 | | | | 0.1 | |
| | | | | | | | | | 3,150,353 | | | | 1.5 | |
| | | | | | | | | | | | | | | |
| | | | | | | Switzerland: 2.5% | | | | | | | | |
| | 14,295 | | | | | Nestle SA | | | 1,606,392 | | | | 0.8 | |
| | 7,630 | | | | | Roche Holding AG | | | 2,084,976 | | | | 1.0 | |
| | 4,098 | | | | | Zurich Insurance Group AG | | | 1,460,349 | | | | 0.7 | |
| | | | | | | | | | 5,151,717 | | | | 2.5 | |
| | | | | | | | | | | | | | | |
| | | | | | | United Kingdom: 4.7% | | | | | | | | |
| | 77,769 | | | (1) | | Auto Trader Group PLC | | | 504,150 | | | | 0.2 | |
| | 114,768 | | | | | Aviva PLC | | | 495,469 | | | | 0.2 | |
| | 170,440 | | | | | Barclays PLC | | | 283,923 | | | | 0.1 | |
| | 52,213 | | | | | Barratt Developments PLC | | | 403,065 | | | | 0.2 | |
| | 261,438 | | | | | BT Group PLC | | | 526,696 | | | | 0.3 | |
| | 38,635 | | | | | Compass Group PLC | | | 979,872 | | | | 0.5 | |
| | 144,037 | | | | | Direct Line Insurance Group PLC | | | 497,019 | | | | 0.2 | |
| | 57,543 | | | | | Evraz PLC | | | 347,565 | | | | 0.2 | |
| | 75,801 | | | | | GlaxoSmithKline PLC | | | 1,579,641 | | | | 0.8 | |
| | 360,160 | | | | | Legal & General Group PLC | | | 964,939 | | | | 0.5 | |
| | 298,854 | | | | | Marks & Spencer Group PLC | | | 701,642 | | | | 0.3 | |
| | 30,594 | | | | | Persimmon PLC | | | 710,379 | | | | 0.4 | |
| | 347,410 | | | | | Taylor Wimpey PLC | | | 618,312 | | | | 0.3 | |
| | 275,526 | | | | | Vodafone Group PLC | | | 521,299 | | | | 0.3 | |
| | 209,545 | | | | | WM Morrison Supermarkets PLC | | | 467,393 | | | | 0.2 | |
| | | | | | | | | | 9,601,364 | | | | 4.7 | |
| | | | | | | | | | | | | | | |
| | | | | | | United States: 59.6% | | | | | | | | |
| | 19,375 | | | | | AbbVie, Inc. | | | 1,273,712 | | | | 0.6 | |
| | 3,187 | | | | | Accenture PLC | | | 631,568 | | | | 0.3 | |
| | 25,885 | | | | | Aflac, Inc. | | | 1,298,909 | | | | 0.6 | |
| | 6,937 | | | | | Air Products & Chemicals, Inc. | | | 1,567,207 | | | | 0.8 | |
| | 5,142 | | | | | Allison Transmission Holdings, Inc. | | | 228,459 | | | | 0.1 | |
| | 7,925 | | | | | Allstate Corp. | | | 811,441 | | | | 0.4 | |
| | 30,582 | | | | | Altria Group, Inc. | | | 1,337,657 | | | | 0.7 | |
| | 12,125 | | | | | Ameren Corp. | | | 935,444 | | | | 0.5 | |
| | 6,400 | | | | | Amgen, Inc. | | | 1,335,168 | | | | 0.7 | |
| | 13,442 | | | | | Amphenol Corp. | | | 1,176,713 | | | | 0.6 | |
| | 87,243 | | | | | Annaly Capital Management, Inc. | | | 724,117 | | | | 0.4 | |
| | 35,545 | | | | | Apple Hospitality REIT, Inc. | | | 566,232 | | | | 0.3 | |
| | 1,029 | | | | | Apple, Inc. | | | 214,793 | | | | 0.1 | |
| | 61,934 | | | | | AT&T, Inc. | | | 2,183,793 | | | | 1.1 | |
| | 4,809 | | | | | Avnet, Inc. | | | 201,449 | | | | 0.1 | |
| | 48,458 | | | | | Bank of America Corp. | | | 1,333,080 | | | | 0.7 | |
| | 2,066 | | | | | Boeing Co. | | | 752,210 | | | | 0.4 | |
| | 18,979 | | | | | Booz Allen Hamilton Holding Corp. | | | 1,433,104 | | | | 0.7 | |
| | 9,669 | | | | | Brinker International, Inc. | | | 367,422 | | | | 0.2 | |
| | 27,153 | | | | | Bristol-Myers Squibb Co. | | | 1,305,245 | | | | 0.6 | |
| | 9,326 | | | | | Broadridge Financial Solutions, Inc. ADR | | | 1,207,157 | | | | 0.6 | |
| | 2,089 | | | | | Camden Property Trust | | | 226,134 | | | | 0.1 | |
| | 19,855 | | | | | CDK Global, Inc. | | | 856,942 | | | | 0.4 | |
| | 2,748 | | | | | CDW Corp. | | | 317,394 | | | | 0.2 | |
| | 39,016 | | | | | Centerpoint Energy, Inc. | | | 1,080,353 | | | | 0.5 | |
| | 25,438 | | | | | CenturyLink, Inc. | | | 289,484 | | | | 0.1 | |
| | 1,309 | | | | | Chemed Corp. | | | 562,124 | | | | 0.3 | |
| | 16,562 | | | | | Chevron Corp. | | | 1,949,679 | | | | 1.0 | |
| | 31,752 | | | | | Chimera Investment Corp. | | | 605,511 | | | | 0.3 | |
| | 17,566 | | | | | Cinemark Holdings, Inc. | | | 670,319 | | | | 0.3 | |
| | 44,004 | | | | | Cisco Systems, Inc. | | | 2,059,827 | | | | 1.0 | |
| | 3,032 | | | | | Citigroup, Inc. | | | 195,109 | | | | 0.1 | |
| | 11,671 | | | | | Citrix Systems, Inc. | | | 1,085,170 | | | | 0.5 | |
| | 18,361 | | | | | CMS Energy Corp. | | | 1,157,661 | | | | 0.6 | |
| | 3,864 | | | | | Columbia Sportswear Co. | | | 362,405 | | | | 0.2 | |
| | 10,047 | | | | | Comerica, Inc. | | | 619,398 | | | | 0.3 | |
| | 10,234 | | | | | CoreCivic, Inc. | | | 173,466 | | | | 0.1 | |
| | 3,521 | | | | | CSX Corp. | | | 235,977 | | | | 0.1 | |
| | 9,854 | | | | | Darden Restaurants, Inc. | | | 1,192,137 | | | | 0.6 | |
| | 7,869 | | | | | Eaton Corp. PLC | | | 635,186 | | | | 0.3 | |
| | 12,880 | | | | | Eli Lilly & Co. | | | 1,455,054 | | | | 0.7 | |
| | 3,371 | | | | | Encompass Health Corp. | | | 204,923 | | | | 0.1 | |
| | 13,390 | | | | | Equitrans Midstream Corp. | | | 180,631 | | | | 0.1 | |
| | 1,282 | | | | | Everest Re Group Ltd. | | | 302,398 | | | | 0.2 | |
| | 16,001 | | | | | Evergy, Inc. | | | 1,040,065 | | | | 0.5 | |
| | 6,096 | | | | | Exelon Corp. | | | 288,097 | | | | 0.1 | |
| | 9,265 | | | | | Expedia Group, Inc. | | | 1,205,376 | | | | 0.6 | |
| | 21,070 | | | | | Exxon Mobil Corp. | | | 1,442,874 | | | | 0.7 | |
| | 1,542 | | | | | Federal Realty Investment Trust | | | 199,242 | | | | 0.1 | |
| | 17,623 | | | | | Flir Systems, Inc. | | | 868,285 | | | | 0.4 | |
| | 22,485 | | | | | Gaming and Leisure Properties, Inc. | | | 879,613 | | | | 0.4 | |
| | 24,217 | | | | | General Mills, Inc. | | | 1,302,875 | | | | 0.6 | |
| | 10,807 | | | | | Genuine Parts Co. | | | 975,764 | | | | 0.5 | |
| | 15,503 | | | | | Geo Group, Inc./The | | | 266,031 | | | | 0.1 | |
See Accompanying Notes to Financial Statements
| Voya Global Advantage and Premium Opportunity Fund | PORTFOLIO OF INVESTMENTS
as of August 31, 2019 (Unaudited)
(Continued) |
| Shares | | | | | | | Value | | | Percentage
of Net
Assets | |
| | 16,926 | | | | | Hartford Financial Services Group, Inc. | | | 986,447 | | | | 0.5 | |
| | 2,817 | | | | | HCA Healthcare, Inc. | | | 338,603 | | | | 0.2 | |
| | 8,912 | | | | | Hershey Co. | | | 1,412,374 | | | | 0.7 | |
| | 64,238 | | | | | Hewlett Packard Enterprise Co. | | | 887,769 | | | | 0.4 | |
| | 4,900 | | | | | Home Depot, Inc. | | | 1,116,759 | | | | 0.5 | |
| | 10,272 | | | | | Honeywell International, Inc. | | | 1,690,977 | | | | 0.8 | |
| | 13,637 | | | (2) | | IAA, Inc. | | | 666,167 | | | | 0.3 | |
| | 1,665 | | | | | Insperity, Inc. | | | 164,935 | | | | 0.1 | |
| | 37,482 | | | | | Intel Corp. | | | 1,777,022 | | | | 0.9 | |
| | 5,818 | | | | | InterDigital, Inc. | | | 286,071 | | | | 0.1 | |
| | 12,547 | | | | | International Business Machines Corp. | | | 1,700,495 | | | | 0.8 | |
| | 779 | | | | | Intuit, Inc. | | | 224,632 | | | | 0.1 | |
| | 10,028 | | | | | j2 Global, Inc. | | | 848,369 | | | | 0.4 | |
| | 24,300 | | | | | Jabil, Inc. | | | 700,083 | | | | 0.3 | |
| | 6,312 | | | | | JM Smucker Co. | | | 663,770 | | | | 0.3 | |
| | 21,246 | | | | | Johnson & Johnson | | | 2,727,137 | | | | 1.3 | |
| | 14,625 | | | | | JPMorgan Chase & Co. | | | 1,606,702 | | | | 0.8 | |
| | 38,530 | | | | | Juniper Networks, Inc. | | | 892,355 | | | | 0.4 | |
| | 13,637 | | | | | KAR Auction Services, Inc. | | | 362,199 | | | | 0.2 | |
| | 8,227 | | | | | Kimberly-Clark Corp. | | | 1,160,912 | | | | 0.6 | |
| | 11,306 | | | | | Kohl's Corp. | | | 534,322 | | | | 0.3 | |
| | 4,202 | | | | | Lamar Advertising Co. | | | 322,083 | | | | 0.2 | |
| | 1,826 | | | | | Lear Corp. | | | 204,987 | | | | 0.1 | |
| | 12,803 | | | | | LogMeIn, Inc. | | | 855,752 | | | | 0.4 | |
| | 19,842 | | | | | Maxim Integrated Products | | | 1,082,183 | | | | 0.5 | |
| | 7,704 | | | | | MAXIMUS, Inc. | | | 592,746 | | | | 0.3 | |
| | 6,891 | | | | | McDonald's Corp. | | | 1,502,031 | | | | 0.7 | |
| | 22,933 | | | | | MDU Resources Group, Inc. | | | 616,668 | | | | 0.3 | |
| | 26,325 | | | | | Merck & Co., Inc. | | | 2,276,323 | | | | 1.1 | |
| | 82,971 | | | | | MFA Financial, Inc. | | | 594,902 | | | | 0.3 | |
| | 33,781 | | | | | Microsoft Corp. | | | 4,657,049 | | | | 2.3 | |
| | 2,388 | | | | | Motorola Solutions, Inc. | | | 432,013 | | | | 0.2 | |
| | 59,160 | | | | | New Residential Investment Corp. | | | 832,381 | | | | 0.4 | |
| | 2,048 | | | | | Norfolk Southern Corp. | | | 356,454 | | | | 0.2 | |
| | 10,934 | | | | | OGE Energy Corp. | | | 468,741 | | | | 0.2 | |
| | 39,610 | | | | | Old Republic International Corp. | | | 925,290 | | | | 0.5 | |
| | 15,153 | | | | | Omnicom Group | | | 1,152,537 | | | | 0.6 | |
| | 6,859 | | | | | Oneok, Inc. | | | 488,910 | | | | 0.2 | |
| | 33,959 | | | | | Oracle Corp. | | | 1,767,906 | | | | 0.9 | |
| | 15,347 | | | | | Paychex, Inc. | | | 1,253,850 | | | | 0.6 | |
| | 15,154 | | | | | PepsiCo, Inc. | | | 2,072,006 | | | | 1.0 | |
| | 54,361 | | | | | Pfizer, Inc. | | | 1,932,534 | | | | 0.9 | |
| | 20,353 | | | | | Philip Morris International, Inc. | | | 1,467,248 | | | | 0.7 | |
| | 12,125 | | | | | Phillips 66 | | | 1,195,889 | | | | 0.6 | |
| | 4,708 | | | | | Pinnacle West Capital Corp. | | | 448,719 | | | | 0.2 | |
| | 44,921 | | | | | Plains GP Holdings L.P. | | | 984,668 | | | | 0.5 | |
| | 9,740 | | | | | Popular, Inc. | | | 512,032 | | | | 0.3 | |
| | 18,383 | | | | | Procter & Gamble Co. | | | 2,210,188 | | | | 1.1 | |
| | 12,547 | | | | | Quest Diagnostics, Inc. | | | 1,284,436 | | | | 0.6 | |
| | 14,602 | | | | | Republic Services, Inc. | | | 1,303,228 | | | | 0.6 | |
| | 23,181 | | | | | Retail Properties of America, Inc. | | | 263,336 | | | | 0.1 | |
| | 11,652 | | | | | Royal Gold, Inc. | | | 1,554,144 | | | | 0.8 | |
| | 43,270 | | | | | Sabre Corp. | | | 1,022,903 | | | | 0.5 | |
| | 19,286 | | | | | Service Corp. International | | | 892,942 | | | | 0.4 | |
| | 6,064 | | | | | Simon Property Group, Inc. | | | 903,172 | | | | 0.4 | |
| | 9,973 | | | | | Sonoco Products Co. | | | 570,456 | | | | 0.3 | |
| | 18,525 | | | | | Southern Co. | | | 1,079,266 | | | | 0.5 | |
| | 14,849 | | | | | Starbucks Corp. | | | 1,433,819 | | | | 0.7 | |
| | 24,809 | | | | | Tanger Factory Outlet Centers, Inc. | | | 350,799 | | | | 0.2 | |
| | 15,076 | | | | | Texas Instruments, Inc. | | | 1,865,655 | | | | 0.9 | |
| | 9,590 | | | | | Total System Services, Inc. | | | 1,287,170 | | | | 0.6 | |
| | 79,193 | | | | | Two Harbors Investment Corp. | | | 1,000,208 | | | | 0.5 | |
| | 16,530 | | | | | Tyson Foods, Inc. | | | 1,537,951 | | | | 0.8 | |
| | 5,873 | | | | | Valero Energy Corp. | | | 442,119 | | | | 0.2 | |
| | 21,807 | | | | | Walgreens Boots Alliance, Inc. | | | 1,116,300 | | | | 0.5 | |
| | 12,765 | | | | | Waste Management, Inc. | | | 1,523,503 | | | | 0.7 | |
| | 34,278 | | | | | Wells Fargo & Co. | | | 1,596,326 | | | | 0.8 | |
| | 57,204 | | | | | Western Union Co. | | | 1,265,352 | | | | 0.6 | |
| | 16,577 | | | | | Xerox Holdings Corp. | | | 480,567 | | | | 0.2 | |
| | 11,676 | | | | | Yum! Brands, Inc. | | | 1,363,523 | | | | 0.7 | |
| | 5,473 | | | | | Zions Bancorp NA | | | 224,886 | | | | 0.1 | |
| | | | | | | | | | 122,086,635 | | | | 59.6 | |
| | | | | | | | | | | | | | | |
| | | | | Total Common Stock
(Cost $196,584,020) | | | 198,563,965 | | | | 97.0 | |
| | | | | | | | | | | | | | | |
| EXCHANGE-TRADED FUNDS: 2.2% | | | | | | | | |
| | 23,375 | | | | | iShares MSCI EAFE ETF | | | 1,477,534 | | | | 0.7 | |
| | 10,231 | | | | | SPDR S&P 500 ETF Trust | | | 2,992,056 | | | | 1.5 | |
| | | | | | | | | | | | | | | |
| | | | | Total Exchange-Traded Funds
(Cost $4,458,451) | | | 4,469,590 | | | | 2.2 | |
| | | | | | | | | | | | | | | |
| | | | | | | Total Investments in Securities
(Cost $201,042,471) | | $ | 203,033,555 | | | | 99.2 | |
| | | | | | | Assets in Excess of Other Liabilities | | | 1,734,663 | | | | 0.8 | |
| | | | | | | Net Assets | | $ | 204,768,218 | | | | 100.0 | |
| ADR | American Depositary Receipt |
| (1) | Securities with purchases pursuant to Rule 144A or section 4(a)(2), under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. |
| (2) | Non-income producing security. |
See Accompanying Notes to Financial Statements
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. 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-CSR 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-CSR and the officer certifications of such Form N-CSR. |
| (b) | There were no significant changes in the registrant’s internal controls that occurred during the second 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 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not applicable.
Item 13. Exhibits.
| (a)(1) | The Code of Ethics is not required for the semi-annual filing. |
| (a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant is required by Rule 30a-2 under the Act (17 CFR 270.30a-2) is attached hereto as EX-99.CERT. |
| (a)(3) | Not required for semi-annual filing. |
| (b) | The officer certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.906CERT. |
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/ Michael Bell | |
| | Michael Bell | |
| | Chief Executive Officer | |
Date: November 8, 2019
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/ Michael Bell | |
| | Michael Bell | |
| | Chief Executive Officer | |
Date: November 8, 2019
| By | /s/ Todd Modic | |
| | Todd Modic | |
| | Senior Vice President and Chief Financial Officer | |
Date: November 8, 2019
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