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: 811-22144

 

Voya Infrastructure, Industrials and Materials 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, 2017

 

 

 

 

 

Item 1. Schedule of Investments

 

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

 

Voya Infrastructure, Industrials and Materials Fund

 

The schedules are not audited.

 

 

 

 

Voya Infrastructure, Industrials and Materials Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2017 (Unaudited)

 

Shares         Value   Percentage
of Net
Assets
 
COMMON STOCK: 99.3%          
       Australia: 2.6%          
410,098      BHP Billiton Ltd.  $8,554,730    2.6 
                  
       China: 3.0%          
100,559      China Mobile Ltd-SPON ADR   5,112,420    1.6 
3,763,500      China Railway Construction Corp. Ltd.   4,468,193    1.4 
           9,580,613    3.0 
                  
       Denmark: 1.9%          
3,381      AP Moller - Maersk A/S - Class B   6,095,746    1.9 
                  
       France: 9.4%          
43,069      Air Liquide SA   5,378,193    1.7 
112,243      Alstom SA   4,628,861    1.4 
31,757   (1)  Arkema SA   3,885,712    1.2 
262,527      Orange SA   4,517,898    1.4 
73,257      Schneider Electric SE   6,295,737    1.9 
320,189      Suez   5,899,006    1.8 
           30,605,407    9.4 
                  
       Germany: 5.8%          
68,836      BASF SE   7,718,795    2.4 
214,472      Deutsche Telekom AG   3,830,144    1.2 
53,444   (1)  Siemens AG   7,265,012    2.2 
           18,813,951    5.8 
                  
       India: 2.5%          
220,642      Larsen & Toubro Ltd.   4,165,789    1.3 
1,267,724      Power Grid Corp. of India Ltd.   4,056,437    1.2 
           8,222,226    2.5 
                  
       Indonesia: 0.8%          
1,114,600      United Tractors Tbk PT   2,760,543    0.8 
                  
       Italy: 2.0%          
995,890      Enel S.p.A.   6,470,307    2.0 
                  
       Japan: 14.4%          
673,000      Hitachi Ltd.   5,042,577    1.5 
211,400      LIXIL Group Corp.   5,581,211    1.7 
271,600      JSR Corp.   5,223,281    1.6 
238,500      Komatsu Ltd.   7,475,708    2.3 
278,300      Mitsubishi Corp.   6,999,432    2.2 
126,200      NTT DoCoMo, Inc.   3,258,741    1.0 
91,500      Omron Corp.   5,423,091    1.7 
72,800      Shin-Etsu Chemical Co., Ltd.   7,670,967    2.4 
           46,675,008    14.4 
                  
       Netherlands: 3.8%          
46,817      Airbus SE   4,871,833    1.5 
37,186      Koninklijke DSM NV   3,478,084    1.1 
101,210   (2)  Philips Lighting NV   3,829,604    1.2 
           12,179,521    3.8 
                  
       Singapore: 1.4%          
16,230      Broadcom Ltd.   4,510,966    1.4 
Shares         Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)          
       South Korea: 0.9%          
11,354      SK Telecom Co., Ltd.  $2,764,711    0.9 
                  
       Spain: 1.4%          
206,143      Gas Natural SDG S.A.   4,611,142    1.4 
                  
       Sweden: 2.7%          
159,578      SKF AB - B Shares   3,612,979    1.1 
265,145      Volvo AB - B Shares   5,053,688    1.6 
           8,666,667    2.7 
                  
       Taiwan: 1.5%          
123,963      Taiwan Semiconductor Manufacturing Co., Ltd. ADR   4,908,935    1.5 
                  
       United Kingdom: 1.3%          
322,104      CNH Industrial NV   4,182,447    1.3 
                  
       United States: 43.9%          
23,020      Albemarle Corp.   3,092,046    1.0 
80,416      Ameren Corp.   5,143,407    1.6 
51,130      American Electric Power Co., Inc.   3,969,222    1.2 
105,729      AT&T, Inc.   3,846,421    1.2 
58,743      Deere & Co.   8,803,226    2.7 
123,211      DowDuPont, Inc.   8,866,264    2.7 
38,370      DTE Energy Co.   4,434,421    1.4 
187,529      Exelon Corp.   7,821,835    2.4 
38,122      General Dynamics Corp.   7,897,354    2.5 
78,635      Halliburton Co.   3,285,370    1.0 
44,255      Honeywell International, Inc.   6,902,010    2.1 
44,643      Hubbell, Inc.   5,615,643    1.7 
29,270      L3 Technologies, Inc.   5,812,729    1.8 
45,076      Lincoln Electric Holdings, Inc.   4,108,227    1.3 
15,075      Lockheed Martin Corp.   4,810,734    1.5 
40,643      NextEra Energy, Inc.   6,423,220    2.0 
73,960      Nucor Corp.   4,252,700    1.3 
44,030      Packaging Corp. of America   5,221,958    1.6 
25,428      Parker Hannifin Corp.   4,767,496    1.5 
24,996      Roper Technologies, Inc.   6,679,181    2.1 
42,657      Schlumberger Ltd.   2,680,992    0.8 
129,414      Steel Dynamics, Inc.   4,982,439    1.5 
119,131      Timken Co.   5,944,637    1.8 
46,261      Valero Energy Corp.   3,960,867    1.2 
63,878      Verizon Communications, Inc.   3,250,751    1.0 
37,550      Vulcan Materials Co.   4,718,157    1.5 
32,124   (1)  WABCO Holdings, Inc.   4,800,932    1.5 
           142,092,239    43.9 
                  
    Total Common Stock            
    (Cost $242,846,276)   321,695,159    99.3 

 

 

 

 

Voya Infrastructure, Industrials and Materials Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2017 (Unaudited) (Continued)

 

Shares         Value   Percentage
of Net
Assets
 
SHORT-TERM INVESTMENTS: 1.4%          
       Mutual Funds: 1.4%          
4,387,000   (3)  BlackRock Liquidity Funds, FedFund, Institutional Class, 0.960%        
       (Cost $4,387,000)  $4,387,000    1.4 
                  
    Total Short-Term Investments          
    (Cost $4,387,000)   4,387,000    1.4 
                  
    Total Investments in Securities
(Cost $247,233,276)
  $326,082,159    100.7 
    Liabilities in Excess of Other Assets   (2,226,540)   (0.7)
    Net Assets  $323,855,619    100.0 

 

ADR American Depositary Receipt
(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) Rate shown is the 7-day yield as of November 30, 2017.

 

Industry Diversification  Percentage
of Net Assets
 
Electric Utilities   8.8%
Aerospace & Defense   7.3 
Industrial Conglomerates   6.4 
Specialty Chemicals   6.1 
Construction Machinery & Heavy Trucks   5.3 
Agricultural & Farm Machinery   4.0 
Industrial Machinery   3.9 
Integrated Telecommunication Services   3.8 
Wireless Telecommunication Services   3.5 
Industrials   3.3 
Multi-Utilities   3.2 
Electrical Components & Equipment   3.1 
Semiconductors   2.9 
Steel   2.8 
Chemicals   2.7 
Construction & Engineering   2.7 
Diversified Metals & Mining   2.6 
Diversified Chemicals   2.4 
Trading Companies & Distributors   2.2 
Marine   1.9 
Oil & Gas Equipment & Services   1.8 
Electrical Compo&Equip   1.7 
Building Products   1.7 
Electronics   1.7 
Industrial Gases   1.7 
Paper Packaging   1.6 
Utilities   1.6 
Electronic Equipment & Instruments   1.5 
Construction Materials   1.5 
Gas Utilities   1.4 
Oil & Gas Refining & Marketing   1.2 
Materials   1.2 
Telecommunication Services   1.0 
Coal & Consumable Fuels   0.8 
Short-Term Investments   1.4 
Liabilities in Excess of Other Assets   (0.7)
Net Assets   100.0%

 

 

 

Voya Infrastructure, Industrials and Materials Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2017 (Unaudited) (Continued)

 

Fair Value Measurements

The following is a summary of the fair valuations according to the inputs used as of November 30, 2017 in valuing the assets and liabilities:(1)

 

   Quoted Prices
in Active Markets
for Identical
Investments
(Level 1)
   Significant
Other
Observable
Inputs#
(Level 2)
   Significant
Unobservable
Inputs
(Level 3)
   Fair Value
at
November 30,
2017
 
Asset Table                    
Investments, at fair value                    
Common Stock                    
Australia  $   $8,554,730   $   $8,554,730 
China   5,112,420    4,468,193        9,580,613 
Denmark       6,095,746        6,095,746 
France   3,885,712    26,719,695        30,605,407 
Germany       18,813,951        18,813,951 
India       8,222,226        8,222,226 
Indonesia   2,760,543            2,760,543 
Italy       6,470,307        6,470,307 
Japan       46,675,008        46,675,008 
Netherlands       12,179,521        12,179,521 
Singapore   4,510,966            4,510,966 
South Korea       2,764,711        2,764,711 
Spain       4,611,142        4,611,142 
Sweden       8,666,667        8,666,667 
Taiwan   4,908,935            4,908,935 
United Kingdom       4,182,447        4,182,447 
United States   142,092,239            142,092,239 
Total Common Stock   163,270,815    158,424,344        321,695,159 
Short-Term Investments   4,387,000            4,387,000 
Total Investments, at fair value  $167,657,815   $158,424,344   $   $326,082,159 
Liabilities Table                    
Other Financial Instruments+                    
Written Options  $   $(1,480,057)  $   $(1,480,057)
Total Liabilities  $   $(1,480,057)  $   $(1,480,057)

 

(1) For the period ended November 30, 2017, as a result of the fair value pricing procedures for international equities utilized by the Fund certain securities have transferred in and out of Level 1 and Level 2 measurements during the year. The Fund's policy is to recognize transfers between levels at the beginning of the reporting period. At November 30, 2017, securities valued at $3,242,293 and $3,996,702 were transferred from Level 1 to Level 2 and Level 2 to Level 1, respectively, within the fair value hierarchy.
+ Other Financial Instruments are derivatives not reflected in the Portfolio of Investments and may include open forward foreign currency contracts, futures, centrally cleared swaps, OTC swaps and written options. Forward foreign currency contracts, futures and centrally cleared swaps are valued at the unrealized gain (loss) on the instrument.  OTC swaps and written options are valued at the fair value of the instrument.
# The earlier close of the foreign markets gives rise to the possibility that significant events, including broad market moves, may have occurred in the interim and may materially affect the value of those securities. To account for this, the Fund may frequently value many of its foreign equity securities using fair value prices based on third party vendor modeling tools to the extent available. Accordingly, a portion of the Fund's investments are categorized as Level 2 investments.

 

At November 30, 2017, the following OTC written equity options were outstanding for Voya Infrastructure, Industrials and Materials Fund:

 

Description  Counterparty  Put/Call  Expiration
Date
  Exercise
Price
  Number of
Contracts
   Notional
Amount
   Premiums
Received
   Fair Value 
                                 
Industrial Select Sector SPDR® Fund  Citibank N.A.  Call  12/28/17   74.510   USD   560,999    41,800,035   $444,760   $(444,760)
iShares MSCI EAFE ETF  JPMorgan Chase Bank N.A.  Call  12/14/17   69.160   USD   639,098    44,807,161    402,249    (777,923)

 

 

 

 

Voya Infrastructure, Industrials and Materials Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2017 (Unaudited) (Continued)

 

Description  Counterparty     Expiration
Date
  Exercise
Price
   Number of
Contracts
       Premiums
Received
   Fair Value 
iShares MSCI Emerging Markets ETF  JPMorgan Chase Bank N.A.  Call  12/14/17   46.590   USD   188,882    8,707,461   $142,568   $(64,029)
Materials Select Sector SPDR® Fund  Goldman Sachs & Co.  Call  12/28/17   59.560   USD   283,747    16,899,971    193,345    (193,345)
                              $1,182,922   $(1,480,057)

 

Currency Abbreviations
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, 2017 was as follows:

 

   Instrument Type  Fair Value 
Derivatives not accounted for as hedging instruments     
         
Liability Derivatives       
         
Equity contracts  Written options  $1,480,057 
Total Liability Derivatives     $1,480,057 

 

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, 2017:

 

   Citibank N.A.   Goldman Sachs & Co.   JPMorgan Chase Bank N.A.   Totals 
Liabilities:                
Written options  $444,760   $193,345   $841,952   $1,480,057 
Total Liabilities  $444,760   $193,345   $841,952   $1,480,057 
                     
Net OTC derivative instruments by counterparty, at fair value  $(444,760)  $(193,345)  $(841,952)   (1,480,057)
                     
Total collateral pledged by the Fund/(Received from counterparty)  $-   $-   $-   $- 
                     
Net Exposure(1)  $(444,760)  $(193,345)  $(841,952)  $(1,480,057)

 

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

 

At November 30, 2017, 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 $247,022,086.

 

Net unrealized appreciation consisted of:

 

Gross Unrealized Appreciation  $80,576,069 
Gross Unrealized Depreciation   (2,798,673)
      
Net Unrealized Appreciation  $77,777,396 

 

 

 

 

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 Infrastructure, Industrials and Materials Fund

 

By /s/ Shaun P. Mathews  
  Shaun P. Mathews  
  President and Chief Executive Officer  
     
Date: January 26, 2018  

 

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

 

By /s/ Shaun P. Mathews  
  Shaun P. Mathews  
  President and Chief Executive Officer  
     
Date: January 26, 2018  
     
By /s/ Todd Modic  
  Todd Modic  
  Senior Vice President and Chief Financial Officer  
     
Date: January 26, 2018