UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT INVESTMENT COMPANIES
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 Road, Suite 100, Scottsdale, AZ | 85258 |
(Address of principal executive offices) | (Zip code) |
The Corporation Trust Company, 1209 Orange Street, Wilmington, DE 19801
(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: March 1, 2017 to August 31, 2017
Item 1. Reports to Stockholders.
The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1):
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| | This report is intended for existing current holders. It is not a prospectus. This information should be read carefully. | | |
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President and Chief Executive Officer
Voya Family of Funds
October 1, 2017
| | Index | | | | Description | | |
| | Bloomberg Barclays High Yield Bond — 2% Issuer Constrained Composite Index | | | | An index that includes all fixed-income securities having a maximum quality rating of Ba1, a minimum amount outstanding of $150 million, and at least one year to maturity. | | |
| | Bloomberg Barclays U.S. Aggregate Bond Index | | | | An index of publicly issued investment grade U.S. Government, mortgage-backed, asset-backed and corporate debt securities. | | |
| | Bloomberg Barclays U.S. Corporate Investment Grade Bond Index | | | | An index consisting of publicly issued, fixed rate, nonconvertible, investment grade debt securities. | | |
| | Bloomberg Barclays Long-Term U.S. Treasury Index | | | | This index measures the performance of U.S. Treasury bill with long-term maturity. The credit level for this index is investment grade. The rebalance scheme is monthly. | | |
| | MSCI Europe ex UK® Index | | | | A free float-adjusted market capitalization index that is designed to measure developed market equity performance in Europe, excluding the UK. | | |
| | MSCI Japan® Index | | | | A free float-adjusted market capitalization index that is designed to measure developed market equity performance in Japan. | | |
| | MSCI UK® Index | | | | A free float-adjusted market capitalization index that is designed to measure developed market equity performance in the UK. | | |
| | MSCI World IndexSM | | | | An index that measures the performance of over 1,400 securities listed on exchanges in the U.S., Europe, Canada, Australia, New Zealand and the Far East. | | |
| | S&P 500® Index | | | | An index that measures the performance of securities of approximately 500 large-capitalization companies whose securities are traded on major U.S. stock markets. | | |
| | S&P North American Natural Resources Sector Index | | | | An index and a market-capitalization-weighted index of 112 stocks designed to measure the performance of companies in the natural resources sector, which includes energy, precious metals, timber and other sub-sectors. | | |
Voya Natural Resources Equity Income Fund | Portfolio Managers’ Report |
| Geographic Diversification as of August 31, 2017 (as a percentage of net assets) | | |||
| | | | | |
| United States | | | 76.6% | |
| Canada | | | 20.9% | |
| United Kingdom | | | 1.2% | |
| Netherlands | | | 0.7% | |
| Assets in Excess of Other Liabilities* | | | 0.6% | |
| Net Assets | | | 100.0% | |
| * Includes short-term investments. | | |||
| Portfolio holdings are subject to change daily. | |
| Top Ten Holdings as of August 31, 2017 (as a percentage of net assets) | | |||
| | | | | |
| Exxon Mobil Corp. | | | 7.8% | |
| Chevron Corp. | | | 7.2% | |
| Schlumberger Ltd. | | | 6.2% | |
| Enbridge, Inc. | | | 4.0% | |
| Suncor Energy, Inc. | | | 3.4% | |
| TransCanada Corp. | | | 3.3% | |
| ConocoPhillips | | | 3.0% | |
| Canadian Natural Resources Ltd. | | | 2.8% | |
| Valero Energy Corp. | | | 2.4% | |
| EOG Resources, Inc. | | | 2.4% | |
| Portfolio holdings are subject to change daily. | |
Portfolio Managers’ Report | Voya Natural Resources Equity Income Fund |
| ASSETS: | | | |||||
| Investments in securities at fair value* | | | | $ | 136,932,421 | | |
| Short-term investments at fair value** | | | | | 1,333,000 | | |
| Cash | | | | | 1,670 | | |
| Foreign currencies at value*** | | | | | 22,468 | | |
| Receivables: | | | |||||
| Dividends | | | | | 479,640 | | |
| Foreign tax reclaims | | | | | 5,243 | | |
| Prepaid expenses | | | | | 1,212 | | |
| Other assets | | | | | 9,173 | | |
| Total assets | | | | | 138,784,827 | | |
| LIABILITIES: | | | |||||
| Payable for investment management fees | | | | | 128,563 | | |
| Payable to trustees under the deferred compensation plan (Note 6) | | | | | 9,173 | | |
| Payable for trustee fees | | | | | 723 | | |
| Other accrued expenses and liabilities | | | | | 95,161 | | |
| Written options, at fair value^ | | | | | 874,238 | | |
| Total liabilities | | | | | 1,107,858 | | |
| NET ASSETS | | | | $ | 137,676,969 | | |
| NET ASSETS WERE COMPRISED OF: | | | |||||
| Paid-in capital | | | | $ | 212,263,097 | | |
| Distributions in excess of net investment income or accumulated net investment loss | | | | | (46,726) | | |
| Accumulated net realized loss | | | | | (50,297,363) | | |
| Net unrealized depreciation | | | | | (24,242,039) | | |
| NET ASSETS | | | | $ | 137,676,969 | | |
| * Cost of investments in securities | | | | $ | 160,984,844 | | |
| ** Cost of short-term investments | | | | $ | 1,333,000 | | |
| *** Cost of foreign currencies | | | | $ | 27,496 | | |
| ^ Premiums received on written options | | | | $ | 688,775 | | |
| Net assets | | | | $ | 137,676,969 | | |
| Shares authorized | | | | | unlimited | | |
| Par value | | | | $ | 0.010 | | |
| Shares outstanding | | | | | 22,596,983 | | |
| Net asset value | | | | $ | 6.09 | | |
| INVESTMENT INCOME: | | | |||||
| Dividends, net of foreign taxes withheld* | | | | $ | 1,983,711 | | |
| Total investment income | | | | | 1,983,711 | | |
| EXPENSES: | | | |||||
| Investment management fees | | | | | 802,356 | | |
| Transfer agent fees | | | | | 8,826 | | |
| Shareholder reporting expense | | | | | 27,600 | | |
| Professional fees | | | | | 26,496 | | |
| Custody and accounting expense | | | | | 13,800 | | |
| Trustee fees | | | | | 2,170 | | |
| Miscellaneous expense | | | | | 17,851 | | |
| Interest expense | | | | | 1,241 | | |
| Total expenses | | | | | 900,340 | | |
| Net investment income | | | | | 1,083,371 | | |
| REALIZED AND UNREALIZED GAIN (LOSS): | | | |||||
| Net realized gain (loss) on: | | | |||||
| Investments | | | | | 568,799 | | |
| Foreign currency related transactions | | | | | 570 | | |
| Written options | | | | | 3,674,067 | | |
| Net realized gain | | | | | 4,243,436 | | |
| Net change in unrealized appreciation (depreciation) on: | | | |||||
| Investments | | | | | (15,910,057) | | |
| Foreign currency related transactions | | | | | 2,617 | | |
| Written options | | | | | (455,761) | | |
| Net change in unrealized appreciation (depreciation) | | | | | (16,363,201) | | |
| Net realized and unrealized loss | | | | | (12,119,765) | | |
| Decrease in net assets resulting from operations | | | | $ | (11,036,394) | | |
| * Foreign taxes withheld | | | | $ | 72,731 | | |
| | | Six Months Ended August 31, 2017 | | | Year Ended February 28, 2017 | | ||||||
FROM OPERATIONS: | | | | ||||||||||
Net investment income | | | | $ | 1,083,371 | | | | | $ | 1,679,417 | | |
Net realized gain (loss) | | | | | 4,243,436 | | | | | | (3,604,306) | | |
Net change in unrealized appreciation (depreciation) | | | | | (16,363,201) | | | | | | 39,961,849 | | |
Increase (decrease) in net assets resulting from operations | | | | | (11,036,394) | | | | | | 38,036,960 | | |
FROM DISTRIBUTIONS TO SHAREHOLDERS: | | | | ||||||||||
Net investment income | | | | | (1,436,654) | | | | | | (1,792,500) | | |
Return of capital | | | | | (5,884,769) | | | | | | (15,607,830) | | |
Total distributions | | | | | (7,321,423) | | | | | | (17,400,330) | | |
FROM CAPITAL SHARE TRANSACTIONS: | | | | ||||||||||
Cost of shares repurchased, net of commissions | | | | | — | | | | | | (1,014,390) | | |
Net decrease in net assets resulting from capital share transactions | | | | | — | | | | | | (1,014,390) | | |
Net increase (decrease) in net assets | | | | | (18,357,817) | | | | | | 19,622,240 | | |
NET ASSETS: | | | | ||||||||||
Beginning of year or period | | | | | 156,034,786 | | | | | | 136,412,546 | | |
End of year or period | | | | $ | 137,676,969 | | | | | $ | 156,034,786 | | |
Undistributed (distributions in excess of) net investment income or accumulated net investment loss at end of year or period | | | | $ | (46,726) | | | | | $ | 306,557 | | |
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| | | Per Share Operating Performance | | | Ratios and Supplemental Data | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | | | | | | | Income (loss) from investment operations | | | | | | | | | Less Distributions | | | | | | Ratios to average net assets | | | | | | | | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| | | Net asset value, beginning of year or period | | | Net investment income gain (loss) | | | Net realized and unrealized gain (loss) | | | Total from investment operations | | | From net investment income | | | From net realized gains | | | From return of capital | | | Total distributions | | | Net asset value, end of year or period | | | Market value, end of year or period | | | Total investment return at net asset value(1) | | | Total investment return at market value(2) | | | Net assets, end of year or period (000’s) | | | Gross expenses prior to expense waiver/recoupment(3) | | | Net expenses after expense waiver/recoupment(3)(4) | | | Net investment income (loss)(3)(4) | | | Portfolio turnover rate | | |||||||||||||||||||||||||||||||||||||||||||||||||||
Year or period ended | | | ($) | | | ($) | | | ($) | | | ($) | | | ($) | | | ($) | | | ($) | | | ($) | | | ($) | | | ($) | | | (%) | | | (%) | | | ($000’s) | | | (%) | | | (%) | | | (%) | | | (%) | | |||||||||||||||||||||||||||||||||||||||||||||||||||
08-31-17 | | | | | 6.91 | | | | | | 0.05• | | | | | | (0.55) | | | | | | (0.50) | | | | | | 0.06 | | | | | | — | | | | | | 0.26 | | | | | | 0.32 | | | | | | 6.09 | | | | | | 6.03 | | | | | | (7.22) | | | | | | 0.28 | | | | | | 137,677 | | | | | | 1.23 | | | | | | 1.23 | | | | | | 1.49 | | | | | | 22 | | |
02-28-17 | | | | | 5.99 | | | | | | 0.07 | | | | | | 1.62 | | | | | | 1.69 | | | | | | 0.08 | | | | | | — | | | | | | 0.69 | | | | | | 0.77 | | | | | | 6.91 | | | | | | 6.33 | | | | | | 30.36 | | | | | | 38.89 | | | | | | 156,035 | | | | | | 1.22 | | | | | | 1.22 | | | | | | 1.07 | | | | | | 41 | | |
02-29-16 | | | | | 9.33 | | | | | | 0.11 | | | | | | (2.54) | | | | | | (2.43) | | | | | | 0.12 | | | | | | — | | | | | | 0.79 | | | | | | 0.91 | | | | | | 5.99 | | | | | | 5.15 | | | | | | (26.56) | | | | | | (34.47) | | | | | | 136,413 | | | | | | 1.25 | | | | | | 1.25 | | | | | | 1.45 | | | | | | 72 | | |
02-28-15 | | | | | 11.59 | | | | | | 0.12 | | | | | | (1.37) | | | | | | (1.25) | | | | | | 1.01 | | | | | | — | | | | | | — | | | | | | 1.01 | | | | | | 9.33 | | | | | | 8.99 | | | | | | (10.78) | | | | | | (1.83) | | | | | | 212,330 | | | | | | 1.19 | | | | | | 1.19 | | | | | | 1.05 | | | | | | 96 | | |
02-28-14 | | | | | 11.69 | | | | | | 0.10 | | | | | | 0.86 | | | | | | 0.96 | | | | | | 0.10 | | | | | | — | | | | | | 0.96 | | | | | | 1.06 | | | | | | 11.59 | | | | | | 10.15 | | | | | | 9.90 | | | | | | 4.57 | | | | | | 263,882 | | | | | | 1.20 | | | | | | 1.20 | | | | | | 0.86 | | | | | | 19 | | |
02-28-13 | | | | | 13.12 | | | | | | 0.10• | | | | | | (0.31) | | | | | | (0.21) | | | | | | 0.09 | | | | | | — | | | | | | 1.13 | | | | | | 1.22 | | | | | | 11.69 | | | | | | 10.76 | | | | | | (0.97) | | | | | | (4.32) | | | | | | 266,047 | | | | | | 1.18 | | | | | | 1.18 | | | | | | 0.83 | | | | | | 30 | | |
02-29-12 | | | | | 15.34 | | | | | | 0.06 | | | | | | (0.86) | | | | | | (0.80) | | | | | | 1.01 | | | | | | — | | | | | | 0.41 | | | | | | 1.42 | | | | | | 13.12 | | | | | | 12.50 | | | | | | (5.00) | | | | | | (14.51) | | | | | | 298,725 | | | | | | 1.22 | | | | | | 1.22 | | | | | | 0.44 | | | | | | 28 | | |
02-28-11 | | | | | 15.86 | | | | | | 0.12 | | | | | | 0.83 | | | | | | 0.95 | | | | | | 0.12 | | | | | | — | | | | | | 1.35 | | | | | | 1.47 | | | | | | 15.34 | | | | | | 16.24 | | | | | | 6.59 | | | | | | 7.36 | | | | | | 347,952 | | | | | | 1.20 | | | | | | 1.20† | | | | | | 0.80† | | | | | | 30 | | |
02-28-10 | | | | | 15.18 | | | | | | 0.13• | | | | | | 2.20 | | | | | | 2.33 | | | | | | 0.15 | | | | | | 0.86 | | | | | | 0.64 | | | | | | 1.65 | | | | | | 15.86 | | | | | | 16.67 | | | | | | 15.85 | | | | | | 46.00 | | | | | | 357,347 | | | | | | 1.20 | | | | | | 1.20† | | | | | | 0.80† | | | | | | 28 | | |
02-28-09 | | | | | 18.92 | | | | | | 0.10• | | | | | | (2.14) | | | | | | (2.04) | | | | | | 0.13 | | | | | | 1.57 | | | | | | — | | | | | | 1.70 | | | | | | 15.18 | | | | | | 12.66 | | | | | | (9.88) | | | | | | (17.28) | | | | | | 341,856 | | | | | | 1.18 | | | | | | 1.18† | | | | | | 0.59† | | | | | | 85 | | |
02-29-08 | | | | | 19.18 | | | | | | 0.17 | | | | | | 1.27 | | | | | | 1.44 | | | | | | 0.12 | | | | | | — | | | | | | 1.58 | | | | | | 1.70 | | | | | | 18.92 | | | | | | 17.19 | | | | | | 8.20 | | | | | | 0.51 | | | | | | 429,235 | | | | | | 1.17 | | | | | | 1.17 | | | | | | 0.86 | | | | | | 57 | | |
| | | Number of Contracts | | | Premiums Received | | ||||||
Balance at 02/28/2017 | | | | | 1,298,597 | | | | | $ | 593,329 | | |
Options Written | | | | | 7,653,812 | | | | | | 4,048,626 | | |
Options Expired | | | | | (6,596,639) | | | | | | (3,601,228) | | |
Options Terminated in Closing Purchase Transactions | | | | | (851,713) | | | | | | (351,952) | | |
Balance at 08/31/2017 | | | | | 1,504,057 | | | | | $ | 688,775 | | |
|
| | | Shares repurchased | | | Net increase (decrease) in shares outstanding | | | Shares repurchased, net of commissions | | | Net increase (decrease) | | ||||||||||||
Year or period ended | | | # | | | # | | | ($) | | | ($) | | ||||||||||||
8/31/2017 | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |
2/28/2017 | | | | | (169,065) | | | | | | (169,065) | | | | | | (1,014,390) | | | | | | (1,014,390) | | |
| Tax Year Ended December 31, 2016 | | ||||||
| Ordinary Income | | | Return of Capital | | |||
| $1,792,500 | | | | $ | 15,607,830 | | |
| Late Year Ordinary Losses Deferred | | | Post- October Capital Losses Deferred | | | Unrealized Appreciation/ (Depreciation) | | | Capital Loss Carryforwards | | |||||||||||||||
| Amount | | | Character | | | Expiration | | ||||||||||||||||||
| $(26,046) | | | $(1,801,838) | | | $(1,186,830) | | | | $ | (26,287,867) | | | | | | Short-term | | | | | | 2017 | | |
| | | | | | | | | | | | (5,692,716) | | | | | | Short-term | | | | | | 2018 | | |
| | | | | | | | | | | | (14,435,138) | | | | | | Short-term | | | | | | None | | |
| | | | | | | | | | | | (7,276,304) | | | | | | Long-term | | | | | | None | | |
| | | | | | | | | | | $ | (53,692,025) | | | | | | | | | | | | | | |
|
| Gross Unrealized Appreciation | | | | $ | 7,561,930 | | |
| Gross Unrealized Depreciation | | | | | (31,963,832) | | |
| Net Unrealized Depreciation | | | | $ | (24,401,902) | | |
|
| Per Share Amount | | | Declaration Date | | | Payable Date | | | Record Date | | |||||||||
| $0.162 | | | | | 9/15/2017 | | | | | | 10/16/2017 | | | | | | 10/4/2017 | | |
Voya Natural Resources Equity | SUMMARY PORTFOLIO OF INVESTMENTS |
Income Fund | as of August 31, 2017 (Unaudited) |
| Shares | | | Value | | | Percentage of Net Assets | | ||||||||||||
| COMMON STOCK:99.4% | | ||||||||||||||||||
| | | | | | | Canada: 20.9% | | ||||||||||||
| | | 34,029 | | | | Agnico-Eagle Mines Ltd. | | | | $ | 1,744,326 | | | | | | 1.3 | | |
| | | 137,763 | | | | Barrick Gold Corp. | | | | | 2,478,356 | | | | | | 1.8 | | |
| | | 126,245 | | | | Canadian Natural Resources Ltd. | | | | | 3,890,871 | | | | | | 2.8 | | |
| | | 119,939 | | | | Crescent Point Energy Corp. | | | | | 823,981 | | | | | | 0.6 | | |
| | | 136,635 | | | | Enbridge, Inc. | | | | | 5,464,034 | | | | | | 4.0 | | |
| | | 263,371 | @ | | Kinross Gold Corp. | | | | | 1,200,972 | | | | | | 0.9 | | | |
| | | 30,711 | | | | Pembina Pipeline Corp. | | | | | 989,815 | | | | | | 0.7 | | |
| | | 150,875 | | | | Suncor Energy, Inc. | | | | | 4,726,914 | | | | | | 3.4 | | |
| | | 68,018 | | | | Teck Cominco Ltd. - Class B | | | | | 1,695,689 | | | | | | 1.2 | | |
| | | 88,467 | | | | TransCanada Corp. | | | | | 4,494,123 | | | | | | 3.3 | | |
| | | 104,222 | | | | Other Securities | | | | | 1,309,362 | | | | | | 0.9 | | |
| | | | | | | | | | | | 28,818,443 | | | | | | 20.9 | | |
| | | | | | | Netherlands: 0.7% | | ||||||||||||
| | | 18,448 | | | | Royal Dutch Shell PLC - Class A ADR | | | | | 1,017,961 | | | | | | 0.7 | | |
| | | | | | | United Kingdom: 1.2% | | ||||||||||||
| | | 65,648 | @ | | TechnipFMC PLC | | | | | 1,695,688 | | | | | | 1.2 | | | |
| | | | | | | United States: 76.6% | | ||||||||||||
| | | 36,095 | | | | Anadarko Petroleum Corp. | | | | | 1,477,368 | | | | | | 1.1 | | |
| | | 19,908 | | | | Andeavor | | | | | 1,993,786 | | | | | | 1.4 | | |
| | | 15,202 | | | | Avery Dennison Corp. | | | | | 1,432,941 | | | | | | 1.0 | | |
| | | 28,979 | @ | | Berry Plastics Group, Inc. | | | | | 1,629,779 | | | | | | 1.2 | | | |
| | | 74,522 | @ | | Carrizo Oil & Gas, Inc. | | | | | 1,001,576 | | | | | | 0.7 | | | |
| | | 92,476 | | | | Chevron Corp. | | | | | 9,952,267 | | | | | | 7.2 | | |
| | | 18,049 | | | | Compass Minerals International, Inc. | | | | | 1,205,673 | | | | | | 0.9 | | |
| | | 21,922 | @ | | Concho Resources, Inc./ Midland TX | | | | | 2,432,684 | | | | | | 1.8 | | | |
| | | 95,991 | | | | ConocoPhillips | | | | | 4,190,967 | | | | | | 3.0 | | |
| | | 29,013 | @ | | Crown Holdings, Inc. | | | | | 1,712,637 | | | | | | 1.2 | | | |
| | | 14,623 | @ | | Diamondback Energy, Inc. | | | | | 1,327,622 | | | | | | 1.0 | | | |
| | | 22,767 | @ | | Dril-Quip, Inc. | | | | | 854,901 | | | | | | 0.6 | | | |
| | | 38,560 | | | | EOG Resources, Inc. | | | | | 3,277,214 | | | | | | 2.4 | | |
| | | 32,023 | | | | EQT Corp. | | | | | 1,996,314 | | | | | | 1.5 | | |
| | | 140,179 | | | | Exxon Mobil Corp. | | | | | 10,699,863 | | | | | | 7.8 | | |
| | | 18,330 | | | | Greif, Inc. - Class A | | | | | 1,108,049 | | | | | | 0.8 | | |
| | | 71,586 | | | | Halliburton Co. | | | | | 2,789,706 | | | | | | 2.0 | | |
| | | 16,708 | | | | International Paper Co. | | | | | 900,060 | | | | | | 0.7 | | |
| | | 55,458 | | | | KapStone Paper and Packaging Corp. | | | | | 1,240,596 | | | | | | 0.9 | | |
| | | 161,625 | | | | Kinder Morgan, Inc. | | | | | 3,124,211 | | | | | | 2.3 | | |
| Shares | | | Value | | | Percentage of Net Assets | | ||||||||||||
| COMMON STOCK: (continued) | | ||||||||||||||||||
| | | | | | | United States (continued) | | ||||||||||||
| | | 73,466 | @ | | Laredo Petroleum, Inc. | | | | $ | 912,448 | | | | | | 0.7 | | | |
| | | 101,366 | | | | Marathon Oil Corp. | | | | | 1,127,190 | | | | | | 0.8 | | |
| | | 58,426 | | | | Marathon Petroleum Corp. | | | | | 3,064,444 | | | | | | 2.2 | | |
| | | 4,071 | | | | Martin Marietta Materials, Inc. | | | | | 863,011 | | | | | | 0.6 | | |
| | | 63,923 | | | | Newmont Mining Corp. | | | | | 2,450,808 | | | | | | 1.8 | | |
| | | 58,938 | | | | Noble Energy, Inc. | | | | | 1,400,956 | | | | | | 1.0 | | |
| | | 49,151 | | | | Occidental Petroleum Corp. | | | | | 2,934,315 | | | | | | 2.1 | | |
| | | 17,256 | | | | Packaging Corp. of America | | | | | 1,939,747 | | | | | | 1.4 | | |
| | | 39,386 | | | | PBF Energy, Inc. | | | | | 932,661 | | | | | | 0.7 | | |
| | | 22,407 | @ | | PDC Energy, Inc. | | | | | 881,267 | | | | | | 0.6 | | | |
| | | 25,552 | | | | Phillips 66 | | | | | 2,141,513 | | | | | | 1.6 | | |
| | | 14,548 | | | | Pioneer Natural Resources Co. | | | | | 1,886,148 | | | | | | 1.4 | | |
| | | 158,266 | @ | | QEP Resources, Inc. | | | | | 1,194,908 | | | | | | 0.9 | | | |
| | | 133,800 | | | | Schlumberger Ltd. | | | | | 8,497,638 | | | | | | 6.2 | | |
| | | 33,340 | @ | | Summit Materials, Inc. | | | | | 984,864 | | | | | | 0.7 | | | |
| | | 29,934 | | | | US Silica Holdings, Inc. | | | | | 814,504 | | | | | | 0.6 | | |
| | | 48,616 | | | | Valero Energy Corp. | | | | | 3,310,750 | | | | | | 2.4 | | |
| | | 61,414 | | | | Williams Cos., Inc. | | | | | 1,825,838 | | | | | | 1.3 | | |
| | | 822,114 | | | | Other Securities(a) | | | | | 13,889,105 | | | | | | 10.1 | | |
| | | | | | | | | | | | 105,400,329 | | | | | | 76.6 | | |
| | | | | | | Total Common Stock (Cost $160,984,844) | | | | | 136,932,421 | | | | | | 99.4 | | |
| SHORT-TERM INVESTMENTS:1.0% | | ||||||||||||||||||
| | | | | | | Mutual Funds: 1.0% | | ||||||||||||
| | | 1,333,000 | | | | BlackRock Liquidity Funds, FedFund, Institutional Class, 0.910%†† (Cost $1,333,000) | | | | | 1,333,000 | | | | | | 1.0 | | |
| | | | | | | Total Short-Term Investments (Cost $1,333,000) | | | | | 1,333,000 | | | | | | 1.0 | | |
| | | | | | | Total Investments in Securities (Cost $162,317,844) | | | | $ | 138,265,421 | | | | | | 100.4 | | |
| | | | | | | Liabilities in Excess of Other Assets | | | | | (588,452) | | | | | | (0.4) | | |
| | | | | | | Net Assets | | | | $ | 137,676,969 | | | | | | 100.0 | | |
|
Voya Natural Resources Equity | SUMMARY PORTFOLIO OF INVESTMENTS |
Income Fund | as of August 31, 2017 (Unaudited) (continued) |
Industry Diversification | | | Percentage of Net Assets | | |||
Oil & Gas Exploration & Production | | | | | 23.9% | | |
Integrated Oil & Gas | | | | | 21.6 | | |
Oil & Gas Storage & Transportation | | | | | 12.5 | | |
Oil & Gas Equipment & Services | | | | | 11.7 | | |
Oil & Gas Refining & Marketing | | | | | 9.2 | | |
Industry Diversification | | | Percentage of Net Assets | | |||
Gold | | | | | 6.8 | | |
Metal & Glass Containers | | | | | 3.5 | | |
Paper Packaging | | | | | 3.4 | | |
Construction Materials | | | | | 2.2 | | |
Diversified Metals & Mining | | | | | 2.1 | | |
Paper Products | | | | | 0.9 | | |
Forest Products | | | | | 0.5 | | |
Aluminum | | | | | 0.4 | | |
Copper | | | | | 0.4 | | |
Oil & Gas Drilling | | | | | 0.3 | | |
Assets in Excess of Other Liabilities* | | | | | 0.6 | | |
Net Assets | | | | | 100.0% | | |
|
| | | Quoted Prices in Active Markets for Identical Investments (Level 1) | | | Significant Other Observable Inputs (Level 2) | | | Significant Unobservable Inputs (Level 3) | | | Fair Value at August 31, 2017 | | ||||||||||||
Asset Table | | | | | | ||||||||||||||||||||
Investments, at fair value | | | | | | ||||||||||||||||||||
Common Stock* | | | | $ | 136,932,421 | | | | | $ | — | | | | | $ | — | | | | | $ | 136,932,421 | | |
Short-Term Investments | | | | | 1,333,000 | | | | | | — | | | | | | — | | | | | | 1,333,000 | | |
Total Investments, at fair value | | | | $ | 138,265,421 | | | | | $ | — | | | | | $ | — | | | | | $ | 138,265,421 | | |
Liabilities Table | | | | | | ||||||||||||||||||||
Other Financial Instruments+ | | | | | | ||||||||||||||||||||
Written Options | | | | $ | — | | | | | $ | (874,238) | | | | | $ | — | | | | | $ | (874,238) | | |
Total Liabilities | | | | $ | — | | | | | $ | (874,238) | | | | | $ | — | | | | | $ | (874,238) | | |
Description | | | Counterparty | | | Put/Call | | | Expiration Date | | | Exercise Price | | | Number of Contracts | | | Notional Amount | | | Premiums Received | | | Fair Value | ||||||||||||||
Energy Select Sector SPDR® Fund | | | Citibank N.A. | | | Call | | | 09/29/17 | | | | | 63.57 USD | | | | | | 617,779 | | | | | | 38,901,543 | | | | | $ | 361,895 | | | | | $ | (277,552) |
Materials Select Sector SPDR® Fund | | | Goldman Sachs International | | | Call | | | 09/15/17 | | | | | 54.780 USD | | | | | | 161,981 | | | | | | 8,920,294 | | | | | | 53,421 | | | | | | (96,529) |
SPDR S&P Oil & Gas Exploration & Production ETF | | | Goldman Sachs International | | | Call | | | 09/15/17 | | | | | 30.930 USD | | | | | | 488,798 | | | | | | 14,742,148 | | | | | | 178,411 | | | | | | (162,873) |
VanEck Vectors Gold Miners ETF | | | UBS AG | | | Call | | | 09/15/17 | | | | | 23.390 USD | | | | | | 235,499 | | | | | | 5,821,535 | | | | | | 95,048 | | | | | | (337,284) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 688,775 | | | | | $ | (874,238) |
|
USD – United States Dollar
Voya Natural Resources Equity | SUMMARY PORTFOLIO OF INVESTMENTS |
Income Fund | as of August 31, 2017 (Unaudited) (continued) |
Derivatives not accounted for as hedging instruments | | | Location on Statement of Assets and Liabilities | | | Fair Value | | |||
Liability Derivatives | | | | |||||||
Equity contracts | | | Written options, at fair value | | | | $ | 874,238 | | |
Total Liability Derivatives | | | | | | | $ | 874,238 | | |
|
| | | Amount of Realized Gain or (Loss) on Derivatives Recognized in Income | | |||
Derivatives not accounted for as hedging instruments | | | Written options | | |||
Equity contracts | | | | $ | 3,674,067 | | |
Total | | | | $ | 3,674,067 | | |
|
| | | Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income | | |||
Derivatives not accounted for as hedging instruments | | | Written options | | |||
Equity contracts | | | | $ | (455,761) | | |
Total | | | | $ | (455,761) | | |
|
Liabilities: | | | Citibank N.A. | | | Goldman Sachs International | | | UBS AG | | | Totals | | ||||||||||||
Written options | | | | $ | 277,552 | | | | | $ | 259,402 | | | | | $ | 337,284 | | | | | $ | 874,238 | | |
Total Liabilities | | | | $ | 277,552 | | | | | $ | 259,402 | | | | | $ | 337,284 | | | | | $ | 874,238 | | |
Net OTC derivative instruments by counterparty, at fair value | | | | $ | (277,552) | | | | | $ | (259,402) | | | | | $ | (337,284) | | | | | $ | (874,238) | | |
Total collateral pledged by the Fund/(Received from counterparty) | | | | $ | — | | | | | $ | — | | | | | $ | — | | | | | $ | — | | |
Net Exposure(1) | | | | $ | (277,552) | | | | | $ | (259,402) | | | | | $ | (337,284) | | | | | $ | (874,238) | | |
|
| Supplemental Call Option Statistics as of August 31, 2017: | | | |||||
| % of Total Net Assets against which calls written | | | 49.67% | | |||
| Average Days to Expiration at time written | | | | | 32 | | |
| Average Call Moneyness* at time written | | | | | OTM | | |
| Premiums received for calls | | | | $ | 688,775 | | |
| Value of calls | | | | $ | (874,238) | | |
| Class II Trustees | | | | | | Proposal | | | Shares voted for | | | Shares voted against or withheld | | | Shares abstained | | | Broker non-vote | | | Total Shares Voted | | ||||||||||||||||||
| | | | Voya Natural Resources Equity Income Fund | | | | | | | | ||||||||||||||||||||||||||||||
| | | | Martin J. Gavin | | | | | 1* | | | | | | 19,456,667.000 | | | | | | 749,176.000 | | | | | | 0.000 | | | | | | 0.000 | | | | | | 20,205,843.000 | | |
| | | | Patrick W. Kenny | | | | | 1* | | | | | | 15,518,713.000 | | | | | | 4,687,130.000 | | | | | | 0.000 | | | | | | 0.000 | | | | | | 20,205,843.000 | | |
| | | | Shaun P. Mathews | | | | | 1* | | | | | | 15,608,137.000 | | | | | | 4,597,706.000 | | | | | | 0.000 | | | | | | 0.000 | | | | | | 20,205,843.000 | | |
| | | | Roger B. Vincent | | | | | 1* | | | | | | 19,393,382.000 | | | | | | 812,461.000 | | | | | | 0.000 | | | | | | 0.000 | | | | | | 20,205,843.000 | | |
| Declaration Date | | | Ex Date | | | Record Date | | | Payable Date | |
| March 15, 2017 | | | April 3, 2017 | | | April 5, 2017 | | | April 17, 2017 | |
| June 15, 2017 | | | July 3, 2017 | | | July 6, 2017 | | | July 17, 2017 | |
| September 15, 2017 | | | October 3, 2017 | | | October 4, 2017 | | | October 16, 2017 | |
| December 15, 2017 | | | December 28, 2017 | | | December 29, 2017 | | | January 16, 2018 | |
Voya Investments, LLC
7337 East Doubletree Ranch Road, Suite 100
Scottsdale, Arizona 85258
Computershare, Inc.
480 Washington Boulevard
Jersey City, New Jersey 07310-1900
The Bank of New York Mellon
225 Liberty Street
New York, New York 10286
Ropes & Gray LLP
Prudential Tower
800 Boylston Street
Boston, Massachusetts 02199
Item 2. Code of Ethics.
Not required for semi-annual filing.
Item 3. Audit Committee Financial Expert.
Not required for semi-annual filing.
Item 4. Principal Accountant Fees and Services.
Not required for semi-annual filing.
Item 5. Audit Committee of Listed Registrants.
Not required for semi-annual filing.
Item 6. Schedule of Investments.
Complete schedule of investments filed herein.
Voya Natural Resources Equity Income Fund | PORTFOLIO OF INVESTMENTS as of August 31, 2017 (Unaudited) |
Shares | Value | Percentage of Net Assets | ||||||||||||
COMMON STOCK: 99.4% | ||||||||||||||
Canada: 20.9% | ||||||||||||||
34,029 | Agnico-Eagle Mines Ltd. | 1,744,326 | 1.3 | |||||||||||
137,763 | Barrick Gold Corp. | 2,478,356 | 1.8 | |||||||||||
126,245 | Canadian Natural Resources Ltd. | 3,890,871 | 2.8 | |||||||||||
71,228 | Cenovus Energy, Inc. | 557,003 | 0.4 | |||||||||||
119,939 | Crescent Point Energy Corp. | 823,981 | 0.6 | |||||||||||
136,635 | Enbridge, Inc. | 5,464,034 | 4.0 | |||||||||||
4,388 | Franco-Nevada Corp. | 359,026 | 0.2 | |||||||||||
28,606 | GoldCorp, Inc. | 393,332 | 0.3 | |||||||||||
263,371 | @ | Kinross Gold Corp. | 1,200,972 | 0.9 | ||||||||||
30,711 | Pembina Pipeline Corp. | 989,815 | 0.7 | |||||||||||
150,875 | Suncor Energy, Inc. | 4,726,914 | 3.4 | |||||||||||
68,018 | Teck Cominco Ltd. - Class B | 1,695,689 | 1.2 | |||||||||||
88,467 | TransCanada Corp. | 4,494,124 | 3.3 | |||||||||||
28,818,443 | 20.9 | |||||||||||||
Netherlands: 0.7% | ||||||||||||||
18,448 | Royal Dutch Shell PLC - Class A ADR | 1,017,961 | 0.7 | |||||||||||
United Kingdom: 1.2% | ||||||||||||||
65,648 | @ | TechnipFMC PLC | 1,695,688 | 1.2 | ||||||||||
United States: 76.6% | ||||||||||||||
13,773 | Alcoa Corp. | 604,359 | 0.4 | |||||||||||
36,095 | Anadarko Petroleum Corp. | 1,477,368 | 1.1 | |||||||||||
19,908 | Andeavor | 1,993,786 | 1.4 | |||||||||||
10,818 | Apache Corp. | 420,171 | 0.3 | |||||||||||
15,202 | Avery Dennison Corp. | 1,432,941 | 1.0 | |||||||||||
21,638 | Baker Hughes a GE Co. | 733,528 | 0.5 | |||||||||||
10,063 | Ball Corp. | 402,419 | 0.3 | |||||||||||
28,979 | @ | Berry Plastics Group, Inc. | 1,629,779 | 1.2 | ||||||||||
23,009 | @ | Boise Cascade Co. | 690,270 | 0.5 | ||||||||||
74,522 | @ | Carrizo Oil & Gas, Inc. | 1,001,576 | 0.7 | ||||||||||
92,476 | Chevron Corp. | 9,952,267 | 7.2 | |||||||||||
18,049 | Compass Minerals International, Inc. | 1,205,673 | 0.9 | |||||||||||
21,922 | @ | Concho Resources, Inc./Midland TX | 2,432,684 | 1.8 | ||||||||||
95,991 | ConocoPhillips | 4,190,967 | 3.0 | |||||||||||
29,013 | @ | Crown Holdings, Inc. | 1,712,637 | 1.2 | ||||||||||
35,735 | CVR Energy, Inc. | 765,444 | 0.6 | |||||||||||
18,344 | Devon Energy Corp. | 576,002 | 0.4 | |||||||||||
14,623 | @ | Diamondback Energy, Inc. | 1,327,622 | 1.0 | ||||||||||
22,767 | @ | Dril-Quip, Inc. | 854,901 | 0.6 | ||||||||||
8,304 | Eagle Materials, Inc. | 807,564 | 0.6 | |||||||||||
38,560 | EOG Resources, Inc. | 3,277,214 | 2.4 | |||||||||||
32,023 | EQT Corp. | 1,996,314 | 1.5 | |||||||||||
140,179 | Exxon Mobil Corp. | 10,699,863 | 7.8 | |||||||||||
32,236 | @ | Forum Energy Technologies, Inc. | 373,938 | 0.3 | ||||||||||
39,859 | @ | Freeport-McMoRan, Inc. | 589,116 | 0.4 | ||||||||||
18,330 | Greif, Inc. - Class A | 1,108,049 | 0.8 | |||||||||||
57,503 | @ | Gulfport Energy Corp. | 720,513 | 0.5 | ||||||||||
71,586 | Halliburton Co. | 2,789,706 | 2.0 | |||||||||||
19,681 | Hess Corp. | 765,591 | 0.6 | |||||||||||
12,141 | HollyFrontier Corp. | 380,135 | 0.3 | |||||||||||
16,708 | International Paper Co. | 900,060 | 0.7 | |||||||||||
55,458 | KapStone Paper and Packaging Corp. | 1,240,595 | 0.9 | |||||||||||
161,625 | Kinder Morgan, Inc. | 3,124,211 | 2.3 | |||||||||||
73,466 | @ | Laredo Petroleum, Inc. | 912,448 | 0.7 | ||||||||||
101,366 | Marathon Oil Corp. | 1,127,190 | 0.8 | |||||||||||
58,426 | Marathon Petroleum Corp. | 3,064,444 | 2.2 | |||||||||||
4,071 | Martin Marietta Materials, Inc. | 863,011 | 0.6 | |||||||||||
11,732 | National Oilwell Varco, Inc. | 359,820 | 0.3 | |||||||||||
18,667 | @ | Newfield Exploration Co. | 487,769 | 0.4 | ||||||||||
63,923 | Newmont Mining Corp. | 2,450,808 | 1.8 | |||||||||||
58,938 | Noble Energy, Inc. | 1,400,956 | 1.0 | |||||||||||
49,151 | Occidental Petroleum Corp. | 2,934,315 | 2.1 | |||||||||||
13,133 | Oneok, Inc. | 711,283 | 0.5 | |||||||||||
17,256 | Packaging Corp. of America | 1,939,747 | 1.4 | |||||||||||
39,386 | PBF Energy, Inc. | 932,661 | 0.7 | |||||||||||
22,407 | @ | PDC Energy, Inc. | 881,267 | 0.6 | ||||||||||
25,552 | Phillips 66 | 2,141,513 | 1.6 | |||||||||||
14,548 | Pioneer Natural Resources Co. | 1,886,148 | 1.4 | |||||||||||
158,266 | @ | QEP Resources, Inc. | 1,194,908 | 0.9 | ||||||||||
32,686 | Range Resources Corp. | 567,429 | 0.4 | |||||||||||
133,800 | Schlumberger Ltd. | 8,497,638 | 6.2 | |||||||||||
31,685 | SM Energy Co. | 423,312 | 0.3 | |||||||||||
86,138 | @ | Southwestern Energy Co. | 469,452 | 0.3 | ||||||||||
33,340 | @ | Summit Materials, Inc. | 984,864 | 0.7 | ||||||||||
151,235 | Tahoe Resources, Inc. | 721,391 | 0.5 | |||||||||||
11,262 | Targa Resources Corp. | 501,947 | 0.4 | |||||||||||
29,101 | @ | Unit Corp. | 463,288 | 0.3 | ||||||||||
29,934 | US Silica Holdings, Inc. | 814,504 | 0.6 | |||||||||||
48,616 | Valero Energy Corp. | 3,310,750 | 2.4 | |||||||||||
3,229 | Vulcan Materials Co. | 391,549 | 0.3 | |||||||||||
7,267 | WestRock Co. | 413,565 | 0.3 | |||||||||||
122,875 | @ | Whiting Petroleum Corp. | 549,251 | 0.4 | ||||||||||
61,414 | Williams Cos., Inc. | 1,825,838 | 1.3 | |||||||||||
105,400,329 | 76.6 | |||||||||||||
Total Common Stock | ||||||||||||||
(Cost $160,984,844) | 136,932,421 | 99.4 | ||||||||||||
SHORT-TERM INVESTMENTS: 1.0% | ||||||||||||||
Mutual Funds: 1.0% | ||||||||||||||
1,333,000 | BlackRock Liquidity Funds, FedFund, Institutional Class, 0.910%†† | |||||||||||||
(Cost $1,333,000) | 1,333,000 | 1.0 | ||||||||||||
Total Short-Term Investments | ||||||||||||||
(Cost $1,333,000) | 1,333,000 | 1.0 | ||||||||||||
Total Investments in Securities (Cost $162,317,844) | $ | 138,265,421 | 100.4 | |||||||||||
Liabilities in Excess of Other Assets | (588,452 | ) | (0.4 | ) | ||||||||||
Net Assets | $ | 137,676,969 | 100.0 |
†† | Rate shown is the 7-day yield as of August 31, 2017. |
@ | Non-income producing security. |
ADR | American Depositary Receipt |
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. 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-CSR 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-CSR and the officer certifications of such Form N-CSR. |
(b) | There were no significant changes in the registrant’s internal controls that occurred during the second 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 12. Exhibits.
(a)(1) | The Code of Ethics is not required for the semi-annual filing. |
(a)(2) | A separate certification for each principal executive officer and principal financial officer of the registrant is required by Rule 30a-2 under the Act (17 CFR 270.30a-2) is attached hereto as EX-99.CERT. |
(a)(3) | Not required for semi-annual filing. |
(b) | The officer certifications required by Section 906 of the Sarbanes-Oxley Act of 2002 are attached hereto as EX-99.906CERT. |
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: November 8, 2017
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: November 8, 2017
By | /s/ Todd Modic | |
Todd Modic | ||
Senior Vice President and Chief Financial Officer |
Date: November 8, 2017