UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number: 811-21938

 

Voya Natural Resources Equity Income Fund

(Exact name of registrant as specified in charter)

 

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

(Address of principal executive offices) (Zip code)

 

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

(Name and address of agent for service)

 

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

 

Date of fiscal year end: February 28

 

Date of reporting period: November 30, 2015

 

 

 

Item 1. Schedule of Investments

 

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

 

Voya Natural Resources Equity Income Fund

 

The schedules are not audited.

 

 

Voya Natural Resources Equity Income Fund

PORTFOLIO OF INVESTMENTS as of November 30, 2015 (Unaudited)

 

 

Voya Natural Resources Equity Income Fund

PORTFOLIO OF INVESTMENTS as of November 30, 2015 (Unaudited) (Continued)

 

Fair Value Measurements

 

The following is a summary of the fair valuations according to the inputs used as of November 30, 2015 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, 2015
Asset Table
Investments, at fair value
Common Stock*		$	166,083,956			$	–			$	–			$	166,083,956
Short-Term Investments			877,000				–				–				877,000
Total Investments, at fair value		$	166,960,956			$	–			$	–			$	166,960,956
Liabilities Table
Other Financial Instruments+
Written Options		$	–			$	(1,535,140	)		$	–			$	(1,535,140	)
Total Liabilities		$	–			$	(1,535,140	)		$	–			$	(1,535,140	)

 

 

Voya Natural Resources Equity Income Fund

PORTFOLIO OF INVESTMENTS as of November 30, 2015 (Unaudited) (Continued)

 

+

Other Financial Instruments are derivatives not reflected in the portfolio of investments and may include open forward foreign currency contracts, futures, centrally cleared swaps, OTC swaps and written options. Forward foreign currency contracts, futures and centrally cleared swaps are valued at the unrealized gain (loss) on the instrument.  OTC swaps and written options are valued at the fair value of the instrument.

*

For further breakdown of Common Stock by sector, please refer to the Portfolio of Investments.

 

At November 30, 2015, the following over-the-counter written options were outstanding for Voya Natural Resources Equity Income Fund:

 

Number of Contracts				Counterparty		Description		Exercise Price				Expiration Date		Premiums Received				Fair Value
Options on Indices
	987,444			Goldman Sachs & Co.		Call on Energy Select Sector SPDRT Fund		68.240	USD			12/18/15		$	1,105,839			$	(1,286,620	)
	308,209			Citigroup, Inc.		Call on Market VectorsT Gold Miners ETF		13.670	USD			12/18/15			159,406				(184,885	)
	272,068			HSBC Bank PLC		Call on Materials Select Sector SPDRT Fund		46.450	USD			12/18/15			90,435				(63,635	)
						Total Written OTC Options								$	1,355,680			$	(1,535,140	)

 

 

Voya Natural Resources Equity Income Fund

PORTFOLIO OF INVESTMENTS as of November 30, 2015 (Unaudited) (Continued)

 

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

 

The fair value of derivative instruments as of November 30, 2015 was as follows:

 

Derivatives not accounted for as hedging instruments		Instrument Type		Fair Value
Liability Derivatives
Equity contracts		Written options		$	1,535,140
Total Liability Derivatives				$	1,535,140

 

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, 2015:

 

		Citigroup, Inc.				Goldman Sachs & Co.				HSBC Bank PLC				Totals
Liabilities:
Written options		$	184,885			$	1,286,620			$	63,635			$	1,535,140
Total Liabilities		$	184,885			$	1,286,620			$	63,635			$	1,535,140
Net OTC derivative instruments by counterparty, at fair value		$	(184,885	)		$	(1,286,620	)		$	(63,635	)			(1,535,140	)
Total collateral pledged by the Fund/(Received from counterparty)		$	-			$	-			$	-			$	-
Net Exposure(1)		$	(184,885	)		$	(1,286,620	)		$	(63,635	)		$	(1,535,140	)

 

(1)

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

 

 

Item 2. Controls and Procedures.

 

(a)

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

 

(b)

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

 

Item 3. Exhibits.

 

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

 

 

SIGNATURES

 

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

 

(Registrant):	Voya Natural Resources Equity Income Fund
By	/s/ Shaun P. Mathews
	Shaun P. Mathews
	President and Chief Executive Officer
Date:	January 22, 2016

 

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

 

By	/s/ Shaun P. Mathews
	Shaun P. Mathews
	President and Chief Executive Officer
Date:	January 22, 2016
By	/s/ Todd Modic
	Todd Modic
	Senior Vice President and Chief Financial Officer Date:
	January 22, 2016