UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number: 811-21786

 

Voya Global Advantage and Premium Opportunity Fund

(Exact name of registrant as specified in charter)

 

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

(Address of principal executive offices) (Zip code)

 

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

(Name and address of agent for service)

 

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

 

Date of fiscal year end: February 28

 

Date of reporting period: November 30, 2018

 

 

 

   

 

 

Item 1. Schedule of Investments

 

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

 

Voya Global Advantage and Premium Opportunity Fund

 

The schedules are not audited.

 

   

 

 

Voya Global Advantage and Premium Opportunity Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2018 (Unaudited)

 

Shares         Value   Percentage
of Net
Assets
 
COMMON STOCK: 95.3%         
        Australia: 4.4%          
 848,715      Charter Hall Group  $4,348,976    2.1 
 89,344      Crown Resorts Ltd.   767,195    0.4 
 58,065      Rio Tinto Ltd.   3,127,176    1.5 
 420,544      South32 Ltd. - AUD   950,325    0.4 
            9,193,672    4.4 
                   
        Austria: 2.7%          
 48,041      Erste Group Bank AG   1,901,524    0.9 
 73,722      OMV AG   3,733,984    1.8 
            5,635,508    2.7 
                   
        Canada: 5.1%          
 20,926      Bank of Nova Scotia   1,138,712    0.6 
 12,242      Canadian Pacific Railway Ltd.   2,589,188    1.2 
 68,915      Lundin Mining Corp.   300,318    0.1 
 8,161      Magna International, Inc.   407,298    0.2 
 7,923      Methanex Corp.   439,010    0.2 
 50,738      National Bank Of Canada   2,314,171    1.1 
 108,594      Suncor Energy, Inc.   3,501,424    1.7 
            10,690,121    5.1 
                   
        Finland: 0.5%          
 29,976   (1)  DNA Oyj   554,339    0.2 
 7,188      Neste Oyj   562,741    0.3 
            1,117,080    0.5 
                   
        France: 0.8%          
 17,361      AXA S.A.   422,781    0.2 
 4,615      LVMH Moet Hennessy Louis Vuitton SE   1,320,990    0.6 
            1,743,771    0.8 
                   
        Germany: 1.8%          
 4,904      BASF SE   358,617    0.2 
 146,896      Deutsche Telekom AG   2,582,952    1.2 
 28,733      Evonik Industries AG   776,003    0.4 
            3,717,572    1.8 
                   
        Hong Kong: 1.9%          
 316,051      CLP Holdings Ltd.   3,488,924    1.7 
 194,356      Hang Lung Properties Ltd.   394,599    0.2 
            3,883,523    1.9 
                   
        Italy: 0.5%          
 180,821      Enel S.p.A.   983,681    0.5 
                   
        Japan: 6.6%          
 56,400      Bandai Namco Holdings, Inc.   2,373,209    1.1 
 109,700      Itochu Corp.   1,952,631    0.9 
 11,600      Japan Airlines Co. Ltd.   418,854    0.2 
 57,200      KDDI Corp.   1,344,012    0.7 
 16,100      NGK Spark Plug Co., Ltd.   331,406    0.2 
 3,500      Nippon Shokubai Co., Ltd.   233,936    0.1 
 72,800      Nippon Telegraph & Telephone Corp.   3,003,077    1.4 

 

Shares         Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)         
        Japan: (continued)          
 75,800      Resona Holdings, Inc.  $403,042    0.2 
 4,900      SoftBank Group Corp.   413,656    0.2 
 27,400      Sumitomo Corp.   421,558    0.2 
 28,800      Sumitomo Electric Industries Ltd.   405,337    0.2 
 68,300      Sumitomo Mitsui Financial Group, Inc.   2,514,452    1.2 
            13,815,170    6.6 
                   
        Netherlands: 6.6%          
 14,326   (2)  ABN AMRO Group NV   365,481    0.2 
 91,720      ASR Nederland NV   3,963,197    1.9 
 209,923      Koninklijke Ahold Delhaize NV   5,409,785    2.6 
 44,815      Koninklijke DSM NV   3,979,633    1.9 
            13,718,096    6.6 
                   
        Norway: 0.6%          
 33,225      Equinor ASA   778,292    0.4 
 20,114      Telenor ASA   390,165    0.2 
            1,168,457    0.6 
                   
        Singapore: 2.1%          
 243,300      United Overseas Bank Ltd.   4,467,337    2.1 
                   
        Spain: 0.3%          
 10,930      ACS Actividades de Construccion y Servicios SA   420,154    0.2 
 19,819      Merlin Properties Socimi SA   250,596    0.1 
            670,750    0.3 
                   
        Sweden: 0.9%          
 17,539      Atlas Copco AB - B Shares   398,068    0.2 
 64,229      Boliden AB   1,441,870    0.7 
            1,839,938    0.9 
                   
        Switzerland: 2.5%          
 2,124      Partners Group   1,396,142    0.6 
 13,524      Roche Holding AG   3,510,616    1.7 
 1,361      Zurich Insurance Group AG   427,797    0.2 
            5,334,555    2.5 
                   
        United Kingdom: 4.4%          
 114,677      Barratt Developments PLC   678,049    0.3 
 9,990      Berkeley Group Holdings PLC   411,732    0.2 
 5,080      Delphi Technologies PLC   365,252    0.2 
 127,917      GlaxoSmithKline PLC   2,651,696    1.3 
 19,065      Imperial Brands PLC   587,659    0.3 
 55,426      International Consolidated Airlines Group SA   444,383    0.2 
 118,122      Legal & General Group PLC   369,921    0.2 
 13,977      Persimmon PLC   339,718    0.2 
 26,679      Rio Tinto PLC   1,219,280    0.6 

 

   

 

 

Voya Global Advantage and Premium Opportunity Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2018 (Unaudited)(Continued)

 

Shares       Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)          
        United Kingdom: (continued)          
 168,067      Tate & Lyle PLC  $1,540,431    0.7 
 296,283      Taylor Wimpey PLC   508,191    0.2 
            9,116,312    4.4 
                   
        United States: 53.6%          
 47,264      AbbVie, Inc.   4,455,577    2.1 
 9,290      Aflac, Inc.   424,925    0.2 
 5,173   (1)  Alphabet, Inc. - Class A   5,740,219    2.8 
 1,669   (1)  Alphabet, Inc. - Class C   1,826,604    0.9 
 7,170      Ameriprise Financial, Inc.   930,307    0.5 
 2,190      Anthem, Inc.   635,253    0.3 
 29,099   (3)  Apollo Global Management LLC   820,301    0.4 
 12,754      Apple, Inc.   2,277,609    1.1 
 90,387      Archer-Daniels-Midland Co.   4,159,610    2.0 
 60,983      Bank of America Corp.   1,731,917    0.8 
 24,959      Caterpillar, Inc.   3,386,187    1.6 
 8,532      CIT Group, Inc.   396,141    0.2 
 23,435      Citigroup, Inc.   1,518,354    0.7 
 11,207      Comcast Corp. – Class A   437,185    0.2 
 89,353      ConocoPhillips   5,913,381    2.8 
 2,033      Costco Wholesale Corp.   470,192    0.2 
 28,718      Cummins, Inc.   4,338,141    2.1 
 14,192      CVS Health Corp.   1,138,225    0.6 
 25,994      Deluxe Corp.   1,308,798    0.6 
 35,603      Discover Financial Services   2,538,494    1.2 
 57,575      Eaton Corp. PLC   4,429,820    2.1 
 11,230      Exelon Corp.   520,960    0.3 
 5,279   (1)  F5 Networks, Inc.   907,830    0.4 
 31,162      Fidelity National Financial, Inc.   1,047,043    0.5 
 8,291      Garmin Ltd.   552,678    0.3 
 3,305      HCA Healthcare, Inc.   475,887    0.2 
 3,582      Humana, Inc.   1,180,162    0.6 
 102,935      Intel Corp.   5,075,725    2.4 
 64,084      Keurig Dr Pepper, Inc.   1,730,268    0.8 
 22,371      Keycorp   410,284    0.2 
 36,092      KLA-Tencor Corp.   3,557,227    1.7 
 4,035      Lam Research Corp.   633,334    0.3 
 4,765      Lear Corp.   649,231    0.3 
 5,867      Lincoln National Corp.   369,445    0.2 
 10,430      Mastercard, Inc. - Class A   2,097,160    1.0 
 8,162   (1)  Micron Technology, Inc.   314,727    0.2 
 99,197      Microsoft Corp.   10,999,955    5.3 
 2,559      Norfolk Southern Corp.   436,924    0.2 
 19,864      Occidental Petroleum Corp.   1,395,843    0.7 
 82,242      Pfizer, Inc.   3,802,048    1.8 
 29,488      PNC Financial Services Group, Inc.   4,003,881    1.9 
 48,066      Principal Financial Group, Inc.   2,370,615    1.1 
 19,691      Prudential Financial, Inc.   1,846,228    0.9 
 9,470      Public Service Enterprise Group, Inc.   529,373    0.3 
 3,474      PVH Corp.   383,912    0.2 

 

Shares       Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)        
        United States: (continued)          
 16,826      Royal Caribbean Cruises Ltd.  $1,902,516    0.9 
 35,464      Seagate Technology   1,528,144    0.7 
 9,615      Steel Dynamics, Inc.   338,448    0.2 
 5,203      Tractor Supply Co.   494,961    0.2 
 67,985      Twenty-First Century Fox, Inc. - Class B   3,333,305    1.6 
 15,432      UnitedHealth Group, Inc.   4,341,947    2.1 
 11,065      Unum Group   397,344    0.2 
 8,029      Verizon Communications, Inc.   484,149    0.2 
 59,244      VF Corp.   4,815,945    2.3 
            111,804,739    53.6 
                   
     Total Common Stock
(Cost $180,768,489)
   198,900,282    95.3 
                   
SHORT-TERM INVESTMENTS: 3.1%
        Mutual Funds: 3.1%          
 6,477,271   (4)  BlackRock Liquidity Funds, FedFund, Institutional Class, 2.110%
(Cost $6,477,271)
   6,477,271    3.1 
                   
     Total Short-Term Investments
(Cost $6,477,271)
   6,477,271    3.1 
                   
     Total Investments in Securities
(Cost $187,245,760)
  $205,377,553    98.4 
     Assets in Excess of Other Liabilities   3,313,804    1.6 
     Net Assets  $208,691,357    100.0 

 

(1) Non-income producing security.
(2) 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.
(3) Security is a Master Limited Partnership.
(4) Rate shown is the 7-day yield as of November 30, 2018.

 

Sector Diversification  Percentage
of Net Assets
 
Financials   18.4%
Information Technology   13.1 
Health Care   10.7 
Industrials   9.7 
Communication Services   9.6 
Consumer Discretionary   8.0 
Energy   7.7 
Consumer Staples   6.6 
Materials   6.3 
Utilities   2.8 
Real Estate   2.4 
Short-Term Investments   3.1 
Assets in Excess of Other Liabilities   1.6 
Net Assets   100.0%

 

   

 

 

Voya Global Advantage and Premium Opportunity Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2018 (Unaudited)(Continued)

 

Fair Value Measurements

The following is a summary of the fair valuations according to the inputs used as of November 30, 2018 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
November 30,
2018
 
Asset Table                    
Investments, at fair value                    
Common Stock                    
Australia  $   $9,193,672   $   $9,193,672 
Austria       5,635,508        5,635,508 
Canada   10,690,121            10,690,121 
Finland       1,117,080        1,117,080 
France       1,743,771        1,743,771 
Germany       3,717,572        3,717,572 
Hong Kong       3,883,523        3,883,523 
Italy       983,681        983,681 
Japan       13,815,170        13,815,170 
Netherlands       13,718,096        13,718,096 
Norway       1,168,457        1,168,457 
Singapore       4,467,337        4,467,337 
Spain       670,750        670,750 
Sweden       1,839,938        1,839,938 
Switzerland       5,334,555        5,334,555 
United Kingdom   365,252    8,751,060        9,116,312 
United States   111,804,739            111,804,739 
Total Common Stock   122,860,112    76,040,170        198,900,282 
Short-Term Investments   6,477,271            6,477,271 
Total Investments, at fair value  $129,337,383   $76,040,170   $   $205,377,553 
Other Financial Instruments+                    
Forward Foreign Currency Contracts       1,350        1,350 
Futures   41,898            41,898 
Total Assets  $129,379,281   $76,041,520   $   $205,420,801 
Liabilities Table                    
Other Financial Instruments+                    
Forward Foreign Currency Contracts  $   $(265,964)  $   $(265,964)
Futures   (455,275)           (455,275)
Written Options       (1,077,306)       (1,077,306)
Total Liabilities  $(455,275)  $(1,343,270)  $   $(1,798,545)

 

+ 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 November 30, 2018, 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 422,382  EUR 373,641  BNP Paribas S.A.  12/28/18  $(1,722)
USD 9,120,312  AUD 12,620,108  BNP Paribas S.A.  12/28/18   (107,638)
USD 13,996,708  JPY 1,589,248,324  BNP Paribas S.A.  12/28/18   (40,883)
USD 28,480,082  EUR 25,171,271  BNP Paribas S.A.  12/28/18   (90,762)
USD 5,263,987  CHF 5,247,210  Morgan Stanley & Co. International PLC  12/28/18   (4,086)
USD 1,160,133  NOK 9,972,430  Societe Generale  12/28/18   (1,619)
USD 4,040,015  HKD 31,600,667  Societe Generale  12/28/18   (1,778)
USD 4,360,128  SGD 6,002,973  Societe Generale  12/28/18   (17,476)
USD 339,292  JPY 38,390,436  Societe Generale  12/28/18   195 
USD 377,818  GBP 295,121  Societe Generale  12/28/18   1,155 
            $(264,614)

 

   

 

 

Voya Global Advantage and Premium Opportunity Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2018 (Unaudited)(Continued)

 

At November 30, 2018, the following futures contracts were outstanding for Voya Global Advantage and Premium Opportunity Fund:

 

Description  Number
of Contracts
   Expiration
Date
  Notional
Value
   Unrealized
Appreciation/
(Depreciation)
 
Short Contracts:                  
EURO STOXX 50® Index   (265)   12/21/18  $(9,489,251)  $(39,758)
FTSE 100 Index   (125)   12/21/18   (11,100,245)   41,898 
Nikkei 225 Index   (52)   12/13/18   (5,124,873)   (151,304)
S&P 500® E-Mini   (100)   12/21/18   (13,791,500)   (264,213)
           $(39,505,869)  $(413,377)

 

At November 30, 2018, 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  Morgan Stanley & Co. International PLC  Call  12/07/18  3,233.000   EUR   1,100    3,490,443   $65,823   $(15,896)
EURO STOXX 50® Index  Societe Generale  Call  12/21/18  3,250.823   EUR   1,100    3,490,443    64,697    (25,017)
EURO STOXX 50® Index  BNP Paribas S.A.  Call  01/04/19  3,226.685   EUR   1,200    3,807,756    66,408    (48,471)
FTSE 100 Index  BNP Paribas S.A.  Call  12/07/18  7,100.000   GBP   500    3,490,120    63,071    (14,639)
FTSE 100 Index  BNP Paribas S.A.  Call  12/21/18  7,167.834   GBP   400    2,792,096    52,447    (17,443)
FTSE 100 Index  BNP Paribas S.A.  Call  01/04/19  7,140.448   GBP   500    3,490,120    60,627    (38,982)
Nikkei 225 Index  BNP Paribas S.A.  Call  12/07/18  22,974.000   JPY   12,100    270,447,826    40,964    (6,728)
Nikkei 225 Index  Societe Generale  Call  12/21/18  22,687.000   JPY   12,600    281,623,356    52,432    (27,167)
Nikkei 225 Index  BNP Paribas S.A.  Call  01/04/19  22,039.050   JPY   13,200    295,033,992    46,383    (75,111)
S&P 500®  Societe Generale  Call  12/07/18  2,828.419   USD   8,800    24,289,496    358,908    (42,888)
S&P 500®  Societe Generale  Call  12/21/18  2,765.223   USD   8,400    23,185,428    381,418    (367,662)
S&P 500®  BNP Paribas S.A.  Call  01/04/19  2,781.285   USD   8,600    23,737,462    344,716    (397,302)
                            $1,597,894   $(1,077,306)

 

Currency Abbreviations
AUD - Australian Dollar
CHF - Swiss Franc
EUR - EU Euro
GBP - British Pound
HKD - Hong Kong Sar Dollar
JPY - Japanese Yen
SGD - Singapore Dollar
USD - United States Dollar

 

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

 

The fair value of derivative instruments as of November 30, 2018 was as follows:

 

   Fair Value 
Derivatives not accounted for as hedging instruments     
         
Asset Derivatives  Instrument Type     
Foreign exchange contracts  Forward foreign currency contracts  $1,350 
Equity contracts  Futures contracts   41,898 
Total Asset Derivatives     $43,248 
         
Liability Derivatives  Instrument Type     
Foreign exchange contracts  Forward foreign currency contracts  $265,964 
Equity contracts  Futures contracts   455,275 
Equity contracts  Written options   1,077,306 
Total Liability Derivatives     $1,798,545 

 

The following is a summary by counterparty of the fair value of OTC derivative instruments subject to Master Netting Agreements and collateral pledged (received), if any, at November 30, 2018:

 

   BNP Paribas S.A.   Morgan Stanley & Co. International
PLC
   Societe Generale   Totals 
Assets:                    
Forward foreign currency contracts  $-   $-   $1,350   $1,350 
Total Assets  $-   $-   $1,350   $1,350 
                     
Liabilities:                    
Forward foreign currency contracts  $241,005   $4,086   $20,873   $265,964 
Written options   598,676    15,896    462,734    1,077,306 
Total Liabilities  $839,681   $19,982   $483,607   $1,343,270 
                     
Net OTC derivative instruments by counterparty, at fair value  $(839,681)  $(19,982)  $(482,257)   (1,341,920)
                     
Total collateral pledged by the Fund/(Received from counterparty)  $839,681   $10,000   $400,000   $1,249,681 
                     
Net Exposure(1)(2)  $-   $(9,982)  $(82,257)  $(92,239)

 

(1)Positive net exposure represents amounts due from each respective counterparty. Negative exposure represents amounts due from the Fund.
(2)At November 30, 2018, the Fund had pledged $900,000 in cash collateral to BNP Paribas S.A.. Excess cash collateral is not shown for financial reporting purposes.

 

At November 30, 2018, 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 $187,814,034.

 

Net unrealized appreciation consisted of:

 

Gross Unrealized Appreciation  $27,771,248 
Gross Unrealized Depreciation   (10,076,984)
Net Unrealized Appreciation  $17,694,264 

 

   

 

 

Item 2. Controls and Procedures.

 

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

 

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

 

Item 3. Exhibits.

 

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

 

   

 

 

SIGNATURES

 

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

 

(Registrant): Voya Global Advantage and Premium Opportunity Fund

 

By /s/ Michael Bell  
  Michael Bell  
  Chief Executive Officer  
     
Date: January 25, 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: January 25, 2019  
     
By /s/ Todd Modic  
  Todd Modic  
  Senior Vice President and Chief Financial Officer  
     
Date: January 25, 2019