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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: May 31, 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.

 

 
 

 

  PORTFOLIO OF INVESTMENTS
Voya Natural Resources Equity Income Fund as of May 31, 2015 (Unaudited)

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: 99.4%
      Energy: 84.2%          
62,372     Anadarko Petroleum Corp.  $5,214,923    2.5 
18,350     Apache Corp.   1,098,064    0.5 
48,564     Atwood Oceanics, Inc.   1,494,314    0.7 
25,497     Baker Hughes, Inc.   1,643,537    0.8 
82,404  @  Baytex Energy Corp.   1,404,164    0.7 
52,941  @  C&J Energy Services Ltd.   795,703    0.4 
14,799     Cabot Oil & Gas Corp.   502,574    0.2 
53,829  @  Cameron International Corp.   2,763,043    1.4 
107,775     Canadian Natural Resources Ltd.   3,323,781    1.6 
36,244  @  Carrizo Oil & Gas, Inc.   1,817,999    0.9 
27,932     Cenovus Energy, Inc.   460,599    0.2 
6,503  @  Cheniere Energy, Inc.   493,122    0.2 
128,261     Chevron Corp.   13,210,883    6.4 
171,540  @  Cloud Peak Energy, Inc.   989,786    0.5 
27,102  @  Concho Resources, Inc.   3,260,371    1.6 
115,264     ConocoPhillips   7,340,011    3.6 
73,456     Consol Energy, Inc.   2,045,015    1.0 
66,863     Devon Energy Corp.   4,360,805    2.1 
26,025  @  Dril-Quip, Inc.   1,966,969    1.0 
48,972     EnCana Corp.   619,986    0.3 
27,414     Ensco PLC   644,229    0.3 
73,533     EOG Resources, Inc.   6,521,642    3.2 
34,708     EQT Corp.   2,952,610    1.4 
156,017     ExxonMobil Corp.   13,292,648    6.5 
17,828     FMC Technologies, Inc.   745,032    0.4 
25,456     Frank's International N.V.   504,538    0.3 
131,145     Halliburton Co.   5,953,983    2.9 
50,724     Hess Corp.   3,424,884    1.7 
29,617     HollyFrontier Corp.   1,233,548    0.6 
156,206     Kinder Morgan, Inc.   6,480,987    3.2 
95,187  @  Laredo Petroleum, Inc.   1,296,447    0.6 
21,308     Marathon Oil Corp.   579,365    0.3 
45,771     Marathon Petroleum Corp.   4,735,468    2.3 
38,911     National Oilwell Varco, Inc.   1,914,032    0.9 
46,876     Noble Corp. PLC   785,173    0.4 
11,677     Noble Energy, Inc.   511,219    0.3 
81,382     Nordic American Tankers Ltd.   1,050,642    0.5 
108,605     Occidental Petroleum Corp.   8,491,825    4.1 
31,003     Oceaneering International, Inc.   1,574,952    0.8 
66,617     Patterson-UTI Energy, Inc.   1,345,663    0.7 
152,134  @  Penn West Petroleum Ltd.   298,183    0.1 
62,249     Phillips 66   4,925,141    2.4 
7,001     Pioneer Natural Resources Co.   1,034,958    0.5 
54,349     Plains GP Holdings L.P.   1,519,598    0.7 
99,795     QEP Resources, Inc.   1,879,140    0.9 
83,872     Rowan Companies PLC   1,801,571    0.9 

 

Shares        Value   Percentage
of Net
Assets		 
COMMON STOCK: (continued)
      Energy: (continued)          
24,842     Royal Dutch Shell PLC - Class A ADR  $1,483,564    0.7 
162,603     Schlumberger Ltd.   14,759,474    7.2 
70,534     Spectra Energy Corp.   2,480,681    1.2 
118,962     Suncor Energy, Inc.   3,477,259    1.7 
26,369     Superior Energy Services   608,860    0.3 
15,527     Tidewater, Inc.   381,033    0.2 
31,811     Total S.A. ADR   1,606,137    0.8 
113,804     TransCanada Corp.   4,935,679    2.4 
33,254  @  Unit Corp.   1,048,499    0.5 
84,768     Valero Energy Corp.   5,021,656    2.5 
68,342  @  Whiting Petroleum Corp.   2,254,603    1.1 
47,574     Williams Cos., Inc.   2,431,031    1.2 
135,569  @  WPX Energy, Inc.   1,747,484    0.9 
          172,539,087    84.2 
                 
      Materials: 15.2%          
260,460     Alcoa, Inc.   3,255,750    1.6 
21,455     Avery Dennison Corp.   1,328,279    0.6 
18,140     Ball Corp.   1,287,759    0.6 
43,596     Barrick Gold Corp.   517,049    0.3 
5,311     Bemis Co., Inc.   243,987    0.1 
15,908  @  Berry Plastics Group, Inc.   532,441    0.3 
82,618     Century Aluminum Co.   923,669    0.4 
44,559  @  Crown Holdings, Inc.   2,463,667    1.2 
39,732     Domtar Corp.   1,717,217    0.8 
41,884     Freeport-McMoRan, Inc.   823,021    0.4 
28,253     GoldCorp, Inc.   501,773    0.2 
19,253     Greif, Inc. - Class A   735,272    0.4 
78,880     International Paper Co.   4,088,350    2.0 
7,208     KapStone Paper and Packaging Corp.   194,256    0.1 
207,979  @  Lundin Mining Corp.   941,558    0.5 
3,425     Martin Marietta Materials, Inc.   510,359    0.2 
48,628     Newmont Mining Corp.   1,324,627    0.6 
32,734     Packaging Corp. of America   2,264,538    1.1 
13,381     Randgold Resources Ltd. ADR   966,510    0.5 
40,602     Rock-Tenn Co.   2,644,814    1.3 
19,212     Royal Gold, Inc.   1,244,361    0.6 
17,131     Silgan Holdings, Inc.   930,898    0.5 
128,144  @  Stillwater Mining Co   1,856,807    0.9 
          31,296,962    15.2 
                 
   Total Common Stock
(Cost $208,631,091)		   203,836,049    99.4 

 

 

 
 

 

  PORTFOLIO OF INVESTMENTS
Voya Natural Resources Equity Income Fund as of May 31, 2015 (Unaudited) (Continued)

 

 

Shares        Value   Percentage
of Net
Assets		 
SHORT-TERM INVESTMENTS: 0.6%
      Mutual Funds: 0.6%          
1,223,000    BlackRock Liquidity Funds, TempFund, Institutional Class, 0.080%††        
      (Cost $1,223,000)  $1,223,000    0.6 
                 
   Total Short-Term Investments
(Cost $1,223,000)		   1,223,000    0.6 
                  
   Total Investments in Securities
(Cost $209,854,091)		  $205,059,049    100.0 
   Liabilities in Excess of Other Assets   (102,282)   – 
   Net Assets  $204,956,767    100.0 

 

†† Rate shown is the 7-day yield as of May 31, 2015.
@ Non-income producing security.
 ADR American Depositary Receipt

 

Cost for federal income tax purposes is $210,936,059.

 

Net unrealized depreciation consists of:

 

Gross Unrealized Appreciation  $11,281,247 
Gross Unrealized Depreciation   (17,158,257)
Net Unrealized Depreciation  $(5,877,010)

 

 

Industry Diversification as of May 31, 2015
(as a percentage of net assets)
 
Oil & Gas Exploration & Production 25.0%
Integrated Oil & Gas 20.4%
Oil & Gas Equipment & Services 16.6%
Oil & Gas Storage & Transportation 9.4%
Oil & Gas Refining & Marketing 7.8%
Oil & Gas Drilling 3.5%
Paper Packaging 3.1%
Paper Products 2.9%
Metal & Glass Containers 3.0%
Gold 2.2%
Aluminum 2.0%
Coal & Consumable Fuels 1.5%
Precious Metals & Minerals 0.9%
Diversified Metals & Mining 0.9%
Construction Materials 0.2%
Assets in Excess of Other Liabilities* 0.6%
Net Assets 100.0%

 

Fair Value Measurements
The following is a summary of the fair valuations according to the inputs used as of May 31, 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
May 31, 2015		 
Asset Table                    
Investments, at fair value                    
Common Stock*  $203,836,049   $–   $–   $203,836,049 
Short-Term Investments   1,223,000    –    –    1,223,000 
Total Investments, at fair value  $205,059,049   $–   $–   $205,059,049 
Liabilities Table                    
Other Financial Instruments+                    
Written Options  $–   $(161,692)  $–   $(161,692)
Total Liabilities  $–   $(161,692)  $–   $(161,692)

 

+ 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 May 31, 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                    
 1,042,395   JPMorgan Chase & Co.  Call on Energy Select Sector SPDR® Fund   82.280   USD  06/19/15  $745,834   $(125,480)
 253,861   UBS AG  Call on Market Vectors Gold Miners ETF   21.130  USD  06/19/15   143,076    (27,306)
 306,154   UBS AG  Call on Materials Select Sector SPDR® Fund   52.540   USD  06/19/15   70,966    (8,906)
        Total Written OTC Options  $959,876   $(161,692)

 

 
 

 

  PORTFOLIO OF INVESTMENTS
Voya Natural Resources Equity Income Fund as of May 31, 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 May 31, 2015 was as follows:

 

   Instrument Type  Fair Value 
Derivatives not accounted for as hedging instruments     
         
Liability Derivatives        
         
Equity contracts  Written options  $161,692 
Total Liability Derivatives     $161,692 

 

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 May 31, 2015:

 

   JPMorgan Chase & Co.   UBS AG   Totals 
Liabilities:               
Written options  $125,480   $36,212   $161,692 
Total Liabilities  $125,480   $36,212   $161,692 
                
Net OTC derivative instruments by counterparty, at fair value  $(125,480)  $(36,212)   (161,692)
                
Total collateral pledged by the Fund/(Received from counterparty)  $-   $-   $- 
                
Net Exposure(1)  $(125,480)  $(36,212)  $(161,692)

 

(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: July 24, 2015  

 

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: July 24, 2015  
     
By /s/ Todd Modic  
  Todd Modic  
  Senior Vice President and Chief Financial Officer Date:  
     
  July 24, 2015