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, 2018

 

 

 

   

 

 

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, 2018 (Unaudited)

 

Shares             Value     Percentage
of Net
Assets		  
COMMON STOCK: 97.5%                
            Australia: 1.7%                
  64,789         AGL Energy Ltd.   $ 893,876       0.3  
  152,907         BHP Billiton Ltd.     3,397,492       1.2  
  12,494         CIMIC Group Ltd.     372,203       0.2  
                  4,663,571       1.7  
                             
            Canada: 2.6%                
  370,877         Lundin Mining Corp.     1,616,210       0.6  
  124,840         Teck Resources Ltd.     2,528,465       0.9  
  83,683         TELUS Corp.     3,003,682       1.1  
                  7,148,357       2.6  
                             
            China: 4.7%                
  372,500         Beijing Enterprises Holdings Ltd.     2,194,024       0.8  
  1,510,000         China Communications Services Corp., Ltd. - H Shares     1,264,700       0.5  
  1,498,000         China Railway Construction Corp. Ltd. - H Shares     1,924,194       0.7  
  4,472,000         China Telecom Corp., Ltd. - H Shares     2,424,956       0.9  
  912,000         CITIC Ltd.     1,468,120       0.5  
  642,000         Jiangsu Expressway Co. Ltd. - H Shares     865,863       0.3  
  3,228,000         Sinopec Shanghai Petrochemical Co. Ltd. - H Shares     1,471,888       0.5  
  1,488,000         Zhejiang Expressway Co., Ltd. - H Shares     1,252,890       0.5  
                  12,866,635       4.7  
                             
            Denmark: 0.4%                
  14,527         DSV A/S     1,112,553       0.4  
                             
            France: 6.2%                
  33,022         Air Liquide SA     3,996,478       1.5  
  13,447         Alstom SA     590,417       0.2  
  25,115         Arkema SA     2,383,895       0.9  
  68,471         Edenred     2,616,666       0.9  
  225,167         Orange SA     3,870,679       1.4  
  49,554         Schneider Electric SE     3,612,037       1.3  
                  17,070,172       6.2  
                             
            Germany: 4.4%                
  54,866         BASF SE     4,012,207       1.4  
  38,490     (1)   Covestro AG     2,229,466       0.8  
  119,762         Deutsche Lufthansa AG     2,930,002       1.1  
  171,645         Deutsche Telekom AG     3,018,127       1.1  
                  12,189,802       4.4  
                             
            Hong Kong: 0.2%                
  269,000         NWS Holdings Ltd.     567,139       0.2  
                             
            Indonesia: 0.1%                
  1,533,400         Telekomunikasi Indonesia Persero Tbk PT     396,807       0.1  

 

Shares             Value     Percentage
of Net
Assets		  
COMMON STOCK: (continued)                
            Italy: 1.4%                
  706,946         Enel S.p.A.   $ 3,845,845       1.4  
                             
            Japan: 13.1%                
  17,400         Central Japan Railway Co.     3,582,889       1.3  
  109,200         Hitachi Ltd.     3,180,067       1.1  
  71,200         JSR Corp.     1,143,002       0.4  
  200,500         Kajima Corp.     2,778,566       1.0  
  85,400         Kamigumi Co., Ltd.     1,922,921       0.7  
  172,600         Marubeni Corp.     1,289,808       0.5  
  137,500         Mitsubishi Corp.     3,716,129       1.3  
  93,200         Nippon Electric Glass Co., Ltd.     2,510,179       0.9  
  83,300         Nippon Telegraph & Telephone Corp.     3,436,212       1.2  
  126,200         NTT DoCoMo, Inc.     2,927,787       1.1  
  71,900         Obayashi Corp.     718,357       0.3  
  62,500         Omron Corp.     2,758,615       1.0  
  41,900         Shin-Etsu Chemical Co., Ltd.     3,741,716       1.4  
  56,700         Taisei Corp.     2,495,892       0.9  
                  36,202,140       13.1  
                             
            Malaysia: 0.9%                
  2,158,800         AirAsia Group Bhd     1,593,235       0.6  
  284,000         Tenaga Nasional BHD     969,136       0.3  
                  2,562,371       0.9  
                             
            Mexico: 0.3%                
  1,679,500     (2)   Cemex SA de CV     863,112       0.3  
                             
            Netherlands: 1.1%                
  34,016         Koninklijke DSM NV     3,020,667       1.1  
                             
            Singapore: 1.1%                
  117,500         Keppel Corp., Ltd.     521,497       0.2  
  2,697,200         Yangzijiang Shipbuilding Holdings Ltd.     2,456,420       0.9  
                  2,977,917       1.1  
                             
            South Korea: 2.5%                
  7,878         Lotte Chemical Corp.     1,921,238       0.7  
  11,674         Korean Air Lines Co. Ltd.     333,095       0.1  
  3         KT Corp.     82       0.0  
  8,217         SK Holdings Co. Ltd.     2,069,204       0.8  
  9,542         SK Telecom Co., Ltd.     2,469,772       0.9  
                  6,793,391       2.5  
                             
            Spain: 0.3%                
  23,529         ACS Actividades de Construccion y Servicios SA     904,465       0.3  
                             
            Sweden: 2.8%                
  21,061         Boliden AB     472,796       0.2  
  191,135         Sandvik AB     2,838,565       1.0  
  96,158         SKF AB - B Shares     1,521,618       0.5  
  215,891         Volvo AB - B Shares     3,012,409       1.1  
                  7,845,388       2.8  

 

   

 

 

Voya Infrastructure, Industrials and Materials Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2018 (Unaudited) (Continued)

 

Shares             Value     Percentage
of Net
Assets		  
COMMON STOCK: (continued)                
            Switzerland: 0.3%                
  3,665     (2)   Garrett Motion, Inc.   $ 42,147       0.0  
  1,334         Swisscom AG     640,766       0.3  
                  682,913       0.3  
                             
            Taiwan: 1.2%                
  5,112,000         AU Optronics Corp.     2,096,178       0.8  
  137,000         General Interface Solution Holding Ltd.     462,334       0.2  
  260,000         Zhen Ding Technology Holding Ltd.     664,279       0.2  
                  3,222,791       1.2  
                             
            Turkey: 0.5%                
  399,491     (2)   Turk Hava Yollari     1,302,671       0.5  
                             
            United Kingdom: 6.1%                
  139,619         Anglo American PLC     2,812,569       1.0  
  105,261         Ashtead Group PLC     2,373,415       0.9  
  1,650,628         Centrica PLC     2,907,836       1.0  
  190,997         CNH Industrial NV     1,871,768       0.7  
  42,766         Intertek Group PLC     2,568,530       0.9  
  454,637         Royal Mail PLC     1,859,990       0.7  
  103,653         TechnipFMC PLC     2,393,348       0.9  
                  16,787,456       6.1  
                             
            United States: 45.6%                
  242,704         AES Corp.     3,759,485       1.4  
  8,035         Air Products & Chemicals, Inc.     1,292,590       0.5  
  2,877         Albemarle Corp.     277,113       0.1  
  53,274         Ameren Corp.     3,655,662       1.3  
  45,800         American Electric Power Co., Inc.     3,560,492       1.3  
  42,630         Ametek, Inc.     3,130,321       1.1  
  22,862         Amphenol Corp.     2,010,484       0.7  
  105,729         AT&T, Inc.     3,302,974       1.2  
  9,764         Boeing Co.     3,385,765       1.2  
  11,736         CDW Corp.     1,087,693       0.4  
  30,839         Centerpoint Energy, Inc.     863,800       0.3  
  66,586         Chemours Co.     1,896,369       0.7  
  180,299         Cisco Systems, Inc.     8,630,913       3.1  
  61,775     (2)   Copart, Inc.     3,161,645       1.1  
  38,339         CSX Corp.     2,784,562       1.0  
  34,427         DTE Energy Co.     4,122,289       1.5  
  44,706         Eaton Corp. PLC     3,439,680       1.2  
  92,706         Exelon Corp.     4,300,631       1.6  
  6,840         General Dynamics Corp.     1,264,648       0.5  
  85,398         Halliburton Co.     2,684,059       1.0  
  73,120     (2)   HD Supply Holdings, Inc.     2,917,488       1.1  
  12,489         Helmerich & Payne, Inc.     756,833       0.3  
  36,658         Honeywell International, Inc.     5,379,562       2.0  
  34,804         Ingersoll-Rand PLC - Class A     3,602,910       1.3  
  29,826         Kansas City Southern     3,073,569       1.1  
  81,048         Kinder Morgan, Inc.     1,383,489       0.5  
  15,789         L3 Technologies, Inc.     2,893,966       1.0  
  15,075         Lockheed Martin Corp.     4,528,982       1.6  
  35,151         Manpowergroup, Inc.     2,853,558       1.0  
  28,709         NextEra Energy, Inc.     5,216,712       1.9  
  57,291         Nucor Corp.     3,460,949       1.3  

 

Shares             Value     Percentage
of Net
Assets		  
COMMON STOCK: (continued)                
            United States: (continued)                
  11,318         Oneok, Inc.   $ 695,265       0.3  
  48,590         Owens Corning, Inc.     2,533,969       0.9  
  28,632         Packaging Corp. of America     2,800,782       1.0  
  19,001         Parker Hannifin Corp.     3,268,932       1.2  
  13,199         Roper Technologies, Inc.     3,927,890       1.4  
  22,301         Schlumberger Ltd.     1,005,775       0.4  
  72,758         Steel Dynamics, Inc.     2,561,082       0.9  
  16,485     (2)   T-Mobile US, Inc.     1,128,398       0.4  
  19,500     (2)   United Rentals, Inc.     2,284,035       0.8  
  63,878         Verizon Communications, Inc.     3,851,843       1.4  
  24,970     (2)   WABCO Holdings, Inc.     3,032,607       1.1  
  43,512         Waste Management, Inc.     4,079,250       1.5  
                  125,849,021       45.6  
                             
        Total Common Stock
(Cost $258,629,402)		     268,875,184       97.5  
                             
EXCHANGE-TRADED FUNDS: 1.9%                
  34,232         iShares Global Infrastructure ETF     1,414,466       0.5  
  54,829         iShares MSCI ACWI ETF     3,828,709       1.4  
                             
        Total Exchange-Traded Funds
(Cost $5,368,003)		     5,243,175       1.9  
                             
PREFERRED STOCK: 0.7%                
            Brazil: 0.7%                
  154,800         Telefonica Brasil SA     1,841,828       0.7  
                             
        Total Preferred Stock
(Cost $2,226,784)		     1,841,828       0.7  
                             
        Total Long-Term Investments
(Cost $266,224,189)		     275,960,187       100.1  
                             
SHORT-TERM INVESTMENTS: 0.5%                
            Mutual Funds: 0.5%                
  1,494,000     (3)   Goldman Sachs Financial Square Government Fund - Institutional Shares, 2.100%
(Cost $1,494,000)		     1,494,000       0.5  
                             
        Total Short-Term Investments
(Cost $1,494,000)		     1,494,000       0.5  
                             
        Total Investments in Securities
(Cost $267,718,189)		   $ 277,454,187       100.6  
        Liabilities in Excess of Other Assets     (1,546,861 )     (0.6 )
        Net Assets   $ 275,907,326       100.0  

 

   

 

 

Voya Infrastructure, Industrials and Materials Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2018 (Unaudited) (Continued)

 

(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.

(3)Rate shown is the 7-day yield as of November 30, 2018.

 

Industry Diversification   Percentage
of Net Assets		  
Industrials     17.2 %
Electric Utilities     6.2  
Utilities     4.3  
Materials     4.0  
Integrated Telecommunication Services     3.7  
Telecommunications     3.6  
Industrial Conglomerates     3.4  
Aerospace & Defense     3.1  
Communications Equipment     3.1  
Telecommunication Services     3.0  
Specialty Chemicals     3.0  
Electrical Components & Equipment     2.4  
Engineering&Construction     2.4  
Oil & Gas Equipment & Services     2.3  
Steel     2.2  
Commercial Services     2.1  
Chemicals     2.0  
Wireless Telecommunication Services     2.0  
Exchange-Traded Funds     1.9  
Diversified Metals & Mining     1.8  
Industrial Machinery     1.7  
Information Technology     1.7  
Electronics     1.5  
Multi-Utilities     1.5  
Diversified Chemicals     1.4  
Industrial Gases     1.5  
Transportation     1.4  
Trading Companies & Distributors     1.3  
Construction Machinery & Heavy Trucks     1.3  
Electrical Equipment     1.2  
Electronic Equipment & Instruments     1.1  
Road & Rail     1.1  
Distribution/Wholesale     1.1  
Paper Packaging     1.0  
Railroads     1.0  
Computers     1.0  
Shipbuilding     0.9  
Electronic Equipment, Instruments & Components     0.7  
Construction & Engineering     0.7  
Agricultural & Farm Machinery     0.7  
Airlines     0.6  
Oil & Gas Storage & Transportation     0.5  
Internet     0.4  
Gas     0.3  
Building Materials     0.3  
Energy     0.3  
Mining     0.2  
Auto Parts&Equipment     0.0  
Short-Term Investments     0.5  
Liabilities in Excess of Other Assets     (0.6 )
Net Assets     100.0 %

 

   

 

 

Voya Infrastructure, Industrials and Materials 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   $ –     $ 4,663,571     $ –     $ 4,663,571  
Canada     7,148,357       –       –       7,148,357  
China     –       12,866,635       –       12,866,635  
Denmark     –       1,112,553       –       1,112,553  
France     –       17,070,172       –       17,070,172  
Germany     –       12,189,802       –       12,189,802  
Hong Kong     –       567,139       –       567,139  
Indonesia     –       396,807       –       396,807  
Italy     –       3,845,845       –       3,845,845  
Japan     –       36,202,140       –       36,202,140  
Malaysia     –       2,562,371       –       2,562,371  
Mexico     863,112       –       –       863,112  
Netherlands     –       3,020,667       –       3,020,667  
Singapore     –       2,977,917       –       2,977,917  
South Korea     –       6,793,391       –       6,793,391  
Spain     –       904,465       –       904,465  
Sweden     –       7,845,388       –       7,845,388  
Switzerland     42,147       640,766       –       682,913  
Taiwan     –       3,222,791       –       3,222,791  
Turkey     –       1,302,671       –       1,302,671  
United Kingdom     2,393,348       14,394,108       –       16,787,456  
United States     125,849,021       –       –       125,849,021  
Total Common Stock     136,295,985       132,579,199       –       268,875,184  
Exchange-Traded Funds     5,243,175       –       –       5,243,175  
Preferred Stock     1,841,828       –       –       1,841,828  
Short-Term Investments     1,494,000       –       –       1,494,000  
Total Investments, at fair value   $ 144,874,988     $ 132,579,199     $ –     $ 277,454,187  
Liabilities Table                                
Other Financial Instruments+                                
Written Options   $ –     $ (1,865,070 )   $ –     $ (1,865,070 )
Total Liabilities   $ –     $ (1,865,070 )   $ –     $ (1,865,070 )

 

+ 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 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   BNP Paribas S.A.   Call   01/03/19     71.840     USD     384,187       27,868,925     $ 570,710     $ (745,025 )
iShares MSCI EAFE ETF   Credit Suisse AG   Call   12/20/18     62.890     USD     604,230       37,927,517       598,490       (370,736 )

 

   

 

 

Voya Infrastructure, Industrials and Materials Fund PORTFOLIO OF INVESTMENTS
as of November 30, 2018 (Unaudited) (Continued)

 

Description   Counterparty   Put/Call   Expiration
Date		   Exercise
Price		   Number of
Contracts		     Notional
Amount		     Premiums
Received		     Fair Value  
iShares MSCI Emerging Markets ETF   Citibank N.A.   Call   12/20/18     40.820     USD     372,366       8,352,879     $ 370,132     $ (407,621 )
Materials Select Sector SPDR® Fund   BNP Paribas S.A.   Call   01/03/19     54.700     USD     262,530       14,336,763       310,310       (341,688 )
                                            $ 1,849,642     $ (1,865,070 )

 

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, 2018 was as follows:

 

        Fair Value  
Derivatives not accounted for as hedging instruments            
             
Liability Derivatives   Instrument Type        
             
Equity contracts   Written options   $ 1,865,070  
Total Liability Derivatives       $ 1,865,070  

 

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.     Citibank N.A.     Credit Suisse AG     Totals  
Liabilities:                                
Written options   $ 1,086,713     $ 407,621     $ 370,736     $ 1,865,070  
Total Liabilities   $ 1,086,713     $ 407,621     $ 370,736     $ 1,865,070  
                                 
Net OTC derivative instruments by counterparty, at fair value   $ (1,086,713 )   $ (407,621 )   $ (370,736 )     (1,865,070 )
                                 
Total collateral pledged by the Fund/(Received from counterparty)   $ -     $ -     $ -     $ -  
                                 
Net Exposure(1)   $ (1,086,713 )   $ (407,621 )   $ (370,736 )   $ (1,865,070 )

 

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

 

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 $266,009,854.  

 

Net unrealized appreciation consisted of:

 

Gross Unrealized Appreciation   $ 34,045,446  
Gross Unrealized Depreciation     (24,359,761 )
         
Net Unrealized Appreciation   $ 9,685,685  

 

   

 

 

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/ 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