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: 811-21553

 

Voya Global Equity Dividend and Premium Opportunity 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: February 29, 2024

 

 

 

 

 

  

Item 1. Reports to Stockholders.

 

(a)            The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1):

 

 

Annual Report

 

February 29, 2024

 

Voya Global Equity Dividend and Premium Opportunity Fund

  

  

 

 

 

 

As permitted by regulations adopted by the U.S. Securities and Exchange Commission, paper copies of the fund’s annual and semi-annual shareholder reports, like this annual report, are not sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Voya funds’ website (www.voyainvestments.com/literature), and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-992-0180 or by sending an e-mail request to Voyaim_literature@voya.com.
You may elect to receive all future reports in paper free of charge. If you received this document in the mail, please follow the instructions to elect to continue receiving paper copies of your shareholder reports. If you received this document through a financial intermediary, you can contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with us, you can call 1-800-992-0180 or send an email request to Voyaim_literature@voya.com to let a fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the Voya funds complex if you invest directly with the funds.

 

This report is submitted for general information to shareholders of the Voya mutual funds. It is not authorized for distribution to prospective shareholders unless accompanied or preceded by a prospectus which includes details regarding the fund’s investment objectives, risks, charges, expenses and other information. This information should be read carefully.

 

E-Delivery Sign-up – details inside

 

INVESTMENT MANAGEMENT

voyainvestments.com
 

 

 

TABLE OF CONTENTS

 

 

Principal Investment Strategies and Portfolio Managers’ Commentary 2
Report of Independent Registered Public Accounting Firm 6
Statement of Assets and Liabilities 7
Statement of Operations 8
Statements of Changes in Net Assets 9
Financial Highlights 10
Notes to Financial Statements 11
Portfolio of Investments 20
Tax Information 27
Shareholder Meeting Information 28
Trustee and Officer Information 29
Advisory and Sub-Advisory Contract Approval Discussion 34
Principal Risks 38
Additional Information 43

 

 

 

 

 

     

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PROXY VOTING INFORMATION

 

A description of the policies and procedures that the Fund uses to determine how to vote proxies related to portfolio securities is available: (1) without charge, upon request, by calling Shareholder Services toll-free at (800) 992-0180; (2) on the Fund’s website at www.voyainvestments.com; and (3) on the U.S. Securities and Exchange Commission’s (“SEC’s”) website at www.sec.gov. Information regarding how the Fund voted proxies related to portfolio securities during the most recent 12-month period ended June 30 is available without charge on the Fund’s website at www.voyainvestments.com and on the SEC’s website at www.sec.gov.

 

QUARTERLY PORTFOLIO HOLDINGS

 

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form NPORT-P. The Fund’s Forms NPORT-P are available on the SEC’s website at www.sec.gov. The Fund’s complete schedule of portfolio holdings is available at: www.voyainvestments.com and without charge upon request from the Fund by calling Shareholder Services toll-free at (800) 992-0180.  

 

 

  Benchmark Descriptions

 

Index Description
MSCI World Value IndexSM The index captures large and mid cap securities exhibiting overall value style characteristics across 23 Developed Markets countries.

1

 

Voya Global Equity Dividend Principal Investment Strategies and
and Premium Opportunity Fund Portfolio Managers’ Commentary

  

       
  Geographic Diversification
as of February 29, 2024

(as a percentage of net assets)
 
  United States 66.4%  
  Japan 6.9%  
  United Kingdom 4.2%  
  Australia 2.3%  
  France 2.2%  
  Canada 2.2%  
  Spain 1.9%  
  Netherlands 1.8%  
  Hong Kong 1.5%  
  Italy 1.4%  
  Countries between 0.1% - 1.3%^ 6.7%  
  Assets in Excess of Other Liabilities* 2.5%  
  Net Assets 100.0%  
       
 

*         Includes short-term investments and exchange-traded funds.

^        Includes 12 countries, which each 0.1% - 1.3% of net assets.

Portfolio holdings are subject to change daily. 

 
       

Voya Global Equity Dividend and Premium Opportunity Fund (the “Fund”) is a diversified closed-end fund. The primary investment objective of the Fund is to seek to provide investors with a high level of income from a portfolio of global common stocks with historically attractive dividend yields and premiums from call option writing. Under normal market conditions, the Fund will invest at least 80% of its managed assets in a portfolio of common stocks of dividend paying companies located throughout the world, including the U.S. The Fund’s secondary investment objective is capital appreciation.

 

Portfolio Management*: The Fund is managed by Vincent Costa, CFA, Susanna Jacob, Justin Montminy, CFA, and Steve Wetter, Portfolio Managers, Voya Investment Management Co. LLC — the Sub-Adviser.

 

Equity Portfolio Construction: The Fund seeks to invest in a portfolio of equity securities included in the MSCI World Value Index SM (the “Index”) and will select securities based upon quantitative analysis. The Sub-Adviser creates a target universe that consists of dividend paying securities by screening for companies that exhibit stable dividend yields within each industry sector. Once the Sub-Adviser creates this target universe, the Sub-Adviser seeks to identify the most attractive securities within various geographic regions and sectors by ranking each security relative to other securities within its region or sector, as applicable, using proprietary fundamental sector-specific models. The Sub-Adviser then uses optimization techniques to seek to achieve the portfolio’s target dividend yield, which is expected to be higher than the Index in aggregate, manage target beta, determine active weights, and neutralize region and sector exposures in order to create a portfolio that the Sub-Adviser believes will provide the potential for maximum total return consistent with maintaining lower volatility than the Index. Under certain market conditions, the Fund will likely earn a lower level of total return than it would in the absence of its strategy of maintaining a relatively lower level of volatility. 

 

     
  Top Ten Holdings
as of February 29, 2024

(as a percentage of net assets)
  Johnson & Johnson 1.8%
  Merck & Co., Inc. 1.8%
  AbbVie, Inc. 1.7%
  Chevron Corp. 1.4%
  Procter & Gamble Co. 1.3%
  PepsiCo, Inc. 1.2%
  Cisco Systems, Inc. 1.2%
  Verizon Communications, Inc. 1.1%
  Amgen, Inc. 1.0%
  Cigna Group 1.0%
     
Portfolio holdings are subject to change daily.
     

In evaluating investments for the Fund, the Sub-Adviser normally expects to take into account environmental, social, and governance (“ESG”) factors, to determine whether any or all of those factors might have a material effect on the value, risks, or prospects of a company. The Sub-Adviser intends to rely primarily on factors identified through its proprietary empirical research as material to a particular company or the industry in which it operates and on third-party evaluations of a company’s ESG standing. The Sub-Adviser may give environmental, social, and governance factors equal consideration or may focus on one or more of those factors as the Sub-Adviser considers appropriate. The Sub-Adviser may consider specific ESG metrics or a company’s progress or lack of progress toward meeting ESG targets. ESG factors will be only one consideration in the Sub-Adviser’s evaluation of any potential investment, and the effect, if any, of ESG factors on the Sub-Adviser’s decision whether to invest in any case will vary depending on the judgment of the Sub-Adviser. 

 

 

The Fund’s Integrated Option Strategy: The Fund’s option strategy is designed to seek gains and lower volatility of total returns over a market cycle by primarily selling call options on selected indices and/or on individual securities and/or exchange traded funds (“ETFs”). 

 

The Fund’s call option writing is determined based on stock outlook, market opportunities and option price volatility. The Fund seeks to sell call options that are generally short-term (between 10 days and three months until expiration) and at-the money, out-of-the-money, or near-the-money. The underlying value of such calls will generally represent 35% to 75% of the value of the Fund’s portfolio. The Fund typically maintains its call positions until expiration, but it retains the option to buy back the call options and sell new call options. Call options can be written both in exchange-listed option markets and over-the-counter markets with major international banks, broker dealers and financial institutions.

2

 

Principal Investment Strategies and Voya Global Equity Dividend
Portfolio Managers’ Commentary and Premium Opportunity Fund

 

The Fund may seek to partially hedge the foreign currency risk inherent in its international equity holdings. The Fund may hedge currency exposure by selling the international currencies forward. The Fund may also hedge currencies by buying out-of-the-money puts on international currencies versus the U.S. dollar and financing them by writing out-of-the-money foreign exchange (“FX”) calls.

 

The Fund may also invest in other derivative instruments, such as futures, for investment, hedging and risk-management purposes to gain or reduce exposure to securities, security markets, market indices consistent with its investment objectives and strategies. Such derivative instruments are acquired to enable the Fund to make market directional tactical decisions to enhance returns, to protect against a decline in its assets or as a substitute for the purchase or sale of equity securities.

 

Additionally, the Fund retains the ability to partially hedge against significant market declines by buying out-of-the-money put options on regional or country indices, such as the S&P 500® Index, the FTSE 100, the Nikkei, the Euro Stoxx 50 or any other broad-based global or regional securities index with an active derivatives market.

 

Performance: Based on net asset value (“NAV”), the Fund provided a total return of 8.45% for the year ended February 29, 2024.(1) This NAV return reflects an decrease in the Fund’s NAV from $5.97 on February 28, 2023 to $5.89 on February 29, 2024, after taking into account monthly distributions. Based on its share price as of February 29, 2024, the Fund provided a total return of 4.79% for the year.(1) This share price return reflects a decrease in the Fund’s share price from $5.35 on February 28, 2023 to $5.10 on February 29, 2024, after taking into account monthly distributions. The Index returned 12.69% for the reporting period. During the year, the Fund made monthly distributions totaling $0.48 per share, which were characterized as $0.30 per share from return of capital and $0.18 per share from net investment income(2). As of February 29, 2024, the Fund had 78,868,514 shares outstanding.

 

Portfolio Specifics: Equity Portfolio: The strategy underperformed the reference Index during the reporting period. In terms of portfolio performance attribution, size factor was the largest detractor while the core model and the higher dividend yield contributed. Within the core model, the sentiment indicator contributed the most.

 

Regionally, stock selection in Europe contributed to results, while selection in North America detracted.

 

At the sector level, stock selection was strongest among the energy, materials and health care sectors. At the individual stock level, key contributors included exposure to non-benchmark stocks Sage Group plc and NVIDIA Corp. and not owning Exxon Mobil Corp.

 

Conversely, stock selection was negative in information technology, consumer staples and consumer discretionary sectors. Among the key detractors were not owning Toyota Motor Corp., Intel Corp. and Broadcom Inc.

 

Option Portfolio: The Fund's covered call strategy seeks to generate premiums and retain some potential for upside appreciation. This strategy detracted from returns during the period as the positive performance of the equity markets resulted in losses on the short call options. The Fund implemented this strategy by typically writing call options on regional indices, the selection and allocation of which resulted from an optimization intended to track closely the Fund's reference index. The strike prices of the options written were typically out-of-the-money or near-the-money, with maturities of around six weeks at inception.

 

Current Strategy and Outlook: After a strong year for capital markets, many investors entered 2024 with an upbeat outlook. We are generally optimistic about the year ahead but in our opinion, we see a few factors that could limit the upside potential for stocks.

 

We believe the progress on inflation and the resilience of American consumers and corporations is encouraging, and U.S. companies appear, in our view, to be on sound financial footing. We expect disinflation to continue, as core personal consumption expenditures inflation has trended sharply lower, and supply chain issues have eased considerably. However, we also foresee weaker wage growth and consumer spending as the lagging impact of tighter monetary policy filters into the U.S. labor market. Despite our slowing growth outlook and expectation of modestly higher unemployment, we are not forecasting a significant deterioration in the jobs market.

 

In our view, obstacles to the upside potential in U.S. equities this year include slower economic growth, expensive valuations and optimistic forecasts of rate cuts. Even with these challenges, we believe that current macroeconomic conditions present opportunities for investors to benefit from divergences in global policy and business cycles.

3

 

Voya Global Equity Dividend Principal Investment Strategies and
and Premium Opportunity Fund Portfolio Managers’ Commentary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

* Effective March 1, 2024, Peg DiOrio was removed as one of the portfolio managers to the Fund. In addition, effective December 31, 2023, Paul Zemsky retired from Voya Investment Management Co. LLC and is no longer one of the portfolio managers to the Fund. Lastly, effective September 30, 2023, Susanna Jacob was added as a portfolio manager to the Fund.

 

(1) Total returns shown include, if applicable, the effect of fee waivers and/or expense reimbursements by the investment adviser. Had all fees and expenses been considered, the total returns would have been lower.

 

(2) The final tax composition of dividends and distributions will not be determined until after the Fund’s tax year-end.

 

The views expressed in this commentary are informed opinions. They should not be considered promises or advice. The views expressed reflect those of the portfolio managers, only through the end of the period as stated on the cover. The portfolio managers’ views are subject to change at any time based on market and other conditions.

 

Portfolio holdings and characteristics are subject to change and may not be representative of current holdings and characteristics. Fund holdings are subject to change daily. The outlook for this Fund may differ from that presented for other Voya mutual funds. This report contains statements that may be “forward-looking” statements. Actual results may differ materially from those projected in the “forward-looking” statements. The Fund’s performance returns shown reflect applicable fee waivers and/or expense limits in effect during this period. Absent such fee waivers/expense limitations, if any, performance would have been lower. Performance for the different classes of shares will vary based on differences in fees associated with each class. An index has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in an index.

4

 

Principal Investment Strategies and Voya Global Equity Dividend
Portfolio Managers’ Commentary and Premium Opportunity Fund

 

 

Average Annual Total Returns for the Periods Ended February 29, 2024
  1 Year 5 Year 10 Year
Voya Global Equity Dividend and Premium Opportunity Fund at Market Value 4.79% 4.15% 4.34%
MSCI World Value IndexSM 12.69% 7.39% 6.08%

  

Based on a $10,000 initial investment, the graph and table above illustrate the total return of Voya Global Equity Dividend and Premium Opportunity Fund against the reference index indicated. The reference index is unmanaged and has no cash in its portfolio and imposes no sales charges. An investor cannot invest directly in a reference index.

 

The performance shown includes, if applicable, the effect of fee waivers and/or expense reimbursements by the Investment Adviser and/or other service providers, which have the effect of increasing total net return. Had all fees and expenses been considered, the total net returns would have been lower.

Performance data represents past performance and is no assurance of future results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. The Fund’s current performance may be lower or higher than the performance data shown. Please log on to www.voyainvestments.com or call (800) 992-0180 to get performance through the most recent month end.

 

Fund holdings are subject to change daily.

 

The Fund’s performance prior to May 6, 2019 reflects returns achieved by a different sub-adviser and pursuant to a different investment objective and principal investment strategies. If the Fund’s current sub-adviser, objective and strategies had been in place for the prior period, the performance information shown would have been different.



5

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

To the Shareholders and Board of Trustees of Voya Global Equity Dividend and Premium Opportunity Fund

 

Opinion on the Financial Statements

 

We have audited the accompanying statement of assets and liabilities of Voya Global Equity Dividend and Premium Opportunity Fund (the “Fund”), including the portfolio of investments, as of February 29, 2024, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Fund at February 29, 2024, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and its financial highlights for each of the five years in the period then ended, in conformity with U.S. generally accepted accounting principles.

 

The financial highlights for each of the years in the five-year period ended February 28, 2019, were audited by another independent registered public accounting firm whose report, dated April 26, 2019, expressed an unqualified opinion on those financial highlights.

 

Basis for Opinion

 

These financial statements are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

 

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of the Fund’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

 

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of February 29, 2024, by correspondence with the custodian, brokers and others; when replies were not received from brokers and others, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

 

 

We have served as the auditor of one or more Voya investment companies since 2019.

Boston, Massachusetts

April 26, 2024

6

 

STATEMENT OF ASSETS AND LIABILITIES as of February 29, 2024

 

  

ASSETS:    
Investments in securities at fair value*  $456,889,524 
Short-term investments at fair value†   3,756,000 
Cash pledged as collateral for OTC derivatives (Note 2)   5,430,000 
Foreign currencies at value‡   21,219 
Receivables:     
Investment securities and currencies sold   20,089 
Dividends   1,026,476 
Interest   2,117 
Foreign tax reclaims   546,265 
Unrealized appreciation on forward foreign currency contracts   1,649,560 
Prepaid expenses   3,423 
Other assets   35,328 
Total assets   469,380,001 
LIABILITIES:     
Payable for investment securities and currencies purchased   20,110 
Payable for fund shares redeemed   100 
Payable for investment management fees   308,037 
Payable to custodian due to bank overdraft   206,990 
Payable to trustees under the deferred compensation plan (Note 6)   35,328 
Payable for trustee fees   1,148 
Other accrued expenses and liabilities   221,473 
Written options, at fair value^   4,313,969 
Total liabilities   5,107,155 
NET ASSETS  $464,272,846 
NET ASSETS WERE COMPRISED OF:     
Paid-in capital  $484,245,851 
Total distributable loss   (19,973,005)
NET ASSETS  $464,272,846 
* Cost of investments in securities  $406,930,156 
Cost of short-term investments  $3,756,000 
Cost of foreign currencies  $21,215 
^ Premiums received on written options  $2,726,035 
        
Net assets  $464,272,846 
Shares authorized   unlimited 
Par value  $0.010 
Shares outstanding   78,868,514 
Net asset value  $5.89 

 

See Accompanying Notes to Financial Statements 

7

 

STATEMENT OF OPERATIONS for the year ended February 29, 2024

 

  

INVESTMENT INCOME:    
Dividends, net of foreign taxes withheld*  $17,025,009 
Interest   58,442 
Other   2,836 
Total investment income   17,086,287 
EXPENSES:     
Investment management fees   3,901,595 
Transfer agent fees   22,951 
Shareholder reporting expense   271,190 
Registration fees   2,306 
Professional fees   129,761 
Custody and accounting expense   95,504 
Trustee fees   11,477 
Miscellaneous expense   98,385 
Total expenses   4,533,169 
Net investment income   12,553,118 
REALIZED AND UNREALIZED GAIN (LOSS):     
Net realized gain (loss) on:     
Investments   4,085,091 
Forward foreign currency contracts   786,248 
Foreign currency related transactions   211,857 
Written options   (10,053,002)
Net realized loss   (4,969,806)
Net change in unrealized appreciation (depreciation) on:     
Investments   25,735,855 
Forward foreign currency contracts   1,109,143 
Foreign currency related transactions   (8,965)
Written options   (3,941,286)
Net change in unrealized appreciation (depreciation)   22,894,747 
Net realized and unrealized gain   17,924,941 
Increase in net assets resulting from operations  $30,478,059 
*  Foreign taxes withheld  $691,371 

 

See Accompanying Notes to Financial Statements 

8

 

STATEMENTS OF CHANGES IN NET ASSETS

 

 

   Year Ended   Year Ended 
  February 29, 2024   February 28, 2023 
FROM OPERATIONS:    
Net investment income  $12,553,118   $11,931,243 
Net realized gain (loss)   (4,969,806)   16,704,410 
Net change in unrealized appreciation (depreciation)   22,894,747    (21,706,257)
Increase in net assets resulting from operations   30,478,059    6,929,396 
           
FROM DISTRIBUTIONS TO SHAREHOLDERS:          
Total distributions (excluding return of capital)   (14,676,082)   (18,455,453)
Return of capital   (23,385,851)   (20,012,674)
Total distributions   (38,061,933)   (38,468,127)
           
FROM CAPITAL SHARE TRANSACTIONS:          
Cost of shares repurchased   (4,373,276)   (5,342,366)
Net decrease in net assets resulting from capital share transactions   (4,373,276)   (5,342,366)
Net decrease in net assets   (11,957,150)   (36,881,097)
           
NET ASSETS:          
Beginning of year or period   476,229,996    513,111,093 
End of year or period  $464,272,846   $476,229,996 

 

See Accompanying Notes to Financial Statements

9

 

FINANCIAL HIGHLIGHTS

 

 

Selected data for a share of beneficial interest outstanding throughout each year or period.

 

    Per Share Operating Performance   Ratios and Supplemental Data
        Income
(loss) from
investment operations
      Less Distributions                               Ratios to average
net assets
   
                                       
Year or
period ended
  ($)   ($)   ($)   ($)   ($)   ($)   ($)   ($)   ($)   ($)   ($)   (%)   (%)   ($000's)   (%)   (%)   (%)   (%)
02-29-24   5.97   0.16   0.24   0.40   0.18     0.30   0.48     5.89   5.10   8.45   4.79   464,273   0.99   0.99   2.73   69
02-28-23   6.36   0.15   (0.06)   0.09   0.23     0.25   0.48     5.97   5.35   2.45   (1.04)   476,230   0.96   0.94   2.43   77
02-28-22   6.01   0.12   0.69   0.81   0.16     0.32   0.48   0.02   6.36   5.90   14.60   16.80   513,111   1.01   0.99   1.90   64
02-28-21   6.26   0.12   0.11   0.23   0.06     0.42   0.48     6.01   5.47   5.65   9.44   571,059   0.97   0.97   2.01   74
02-29-20   7.02   0.18   (0.31)   (0.13)   0.18     0.45   0.63     6.26   5.50   (1.69)   (7.57)   607,858   1.01   1.00   2.52   122
02-28-19   8.03   0.14   (0.42)   (0.28)   0.17   0.11   0.45   0.73     7.02   6.56   (2.91)   (3.63)   681,558   1.25   1.20   1.88   39
02-28-18   8.01   0.15   0.60   0.75   0.30     0.43   0.73     8.03   7.56   10.28   14.08   779,108   1.23   1.20   1.87   33
02-28-17   7.52   0.19   1.18   1.37   0.62     0.26   0.88     8.01   7.29   20.78   26.97   777,289   1.23   1.20   2.39   31
02-29-16   9.31   0.18   (1.06)   (0.88)   0.77     0.14   0.91     7.52   6.51   (8.90)(5)   (13.92)   733,729   1.23   1.20   2.10   29
02-28-15   10.05   0.22   (0.05)   0.17   0.91       0.91     9.31   8.53   2.47   3.92   908,601   1.22   1.20   2.23   31

 

 

(1)Total investment return at net asset value has been calculated assuming a purchase at net asset value at the beginning of each period and a sale at net asset value at the end of each period and assumes reinvestment of dividends, capital gain distributions and return of capital distributions/allocations, if any, in accordance with the provisions of the dividend reinvestment plan. Total investment return at net asset value is not annualized for periods less than one year.

(2)Total investment return at market value measures the change in the market value of your investment assuming reinvestment of dividends, capital gain distributions and return of capital distributions/allocations, if any, in accordance with the provisions of the Fund’s dividend reinvestment plan. Total investment return at market value is not annualized for periods less than one year.

(3)Annualized for periods less than one year.

(4)The Investment Adviser has entered into a written expense limitation agreement with the Fund under which it will limit the expenses of the Fund (excluding interest, taxes, investment-related costs, leverage expenses, extraordinary expenses and acquired fund fees and expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.

(5)Excluding amounts related to a foreign currency settlement recorded in the fiscal year ended February 29, 2016, total return would have been (9.51)%.

Calculated using average number of shares outstanding throughout the year or period.

 

See Accompanying Notes to Financial Statements

10

 

NOTES TO FINANCIAL STATEMENTS as of February 29, 2024

 

 

NOTE 1 — ORGANIZATION

 

Voya Global Equity Dividend and Premium Opportunity Fund (the “Fund”) is a diversified, closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Fund is organized as a Delaware statutory trust.

 

Voya Investments, LLC (“Voya Investments” or the “Investment Adviser”), an Arizona limited liability company, serves as the Investment Adviser to the Fund. The Investment Adviser has engaged Voya Investment Management Co. LLC (“Voya IM” or the “Sub-Adviser”), a Delaware limited liability Company, to serve as the Sub-Adviser to the Fund.

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES

 

The following significant accounting policies are consistently followed by the Fund in the preparation of its financial statements. The Fund is considered an investment company under U.S. generally accepted accounting principles (“GAAP”) and follows the accounting and reporting guidance applicable to investment companies.

 

A. Security Valuation. The Fund is open for business every day the New York Stock Exchange (“NYSE”) opens for regular trading (each such day, a “Business Day”). The net asset value (“NAV”) per share of the Fund is determined each Business Day as of the close of the regular trading session (“Market Close”), as determined by the Consolidated Tape Association (“CTA”), the central distributor of transaction prices for exchange-traded securities (normally 4:00 p.m. Eastern Time unless otherwise designated by the CTA). The NAV per share of the Fund is calculated by taking the value of the Fund’s assets, subtracting the Fund’s liabilities, and dividing by the number of shares that are outstanding. On days when the Fund is closed for business, Fund shares will not be priced and the Fund does not transact purchase and redemption orders. To the extent the Fund’s assets are traded in other markets on days when the Fund does not price its shares, the value of the Fund’s assets will likely change and you will not be able to purchase or redeem shares of the Fund.

 

Portfolio securities for which market quotations are readily available are valued at market value. Investments in open-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. The prospectuses of the open-end registered investment companies in which the Fund may invest explain the circumstances under which they will use fair value pricing and the effects of using fair value pricing. Foreign securities’ prices are converted into U.S. dollar amounts using the applicable exchange rates as of Market Close.

 

When a market quotation for a portfolio security is not readily

available or is deemed unreliable (for example when trading has been halted or there are unexpected market closures or other material events that would suggest that the market quotation is unreliable) and for purposes of determining the value of other Fund assets, the asset is priced at its fair value. The Board has designated the Investment Adviser, as the valuation designee, to make fair value determinations in good faith. In determining the fair value of the Fund’s assets, the Investment Adviser, pursuant to its fair valuation policy, may consider inputs from pricing service providers, broker-dealers, or the Fund’s sub-adviser(s). Issuer specific events, transaction price, position size, nature and duration of restrictions on disposition of the security, market trends, bid/ask quotes of brokers and other market data may be reviewed in the course of making a good faith determination of an asset’s fair value. Because trading hours for certain foreign securities end before Market Close, closing market quotations may become unreliable. The prices of foreign securities will generally be adjusted based on inputs from an independent pricing service that are intended to reflect valuation changes through the NYSE close. Because of the inherent uncertainties of fair valuation, the values used to determine the Fund’s NAV may materially differ from the value received upon actual sale of those investments. Thus, fair valuation may have an unintended dilutive or accretive effect on the value of shareholders’ investments in the Fund.

 

The Fund’s financial instruments are valued at the close of the NYSE and are reported at fair value, which GAAP defines as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

 

Various valuation techniques and inputs are used to determine the fair value of financial instruments. GAAP establishes the following fair value hierarchy that categorizes the inputs used to measure fair value:

 

Level 1 – quoted prices (unadjusted) in active markets for identical financial instruments that the fund can access at the reporting date.

 

Level 2 – inputs other than Level 1 quoted prices that are observable, either directly or indirectly (including, but not limited to, quoted prices for similar financial instruments in active markets, quoted prices for identical or similar financial instruments in inactive markets, interest rates and yield curves, implied volatilities, and credit spreads).

 

Level 3 – unobservable inputs (including the fund’s own assumptions in determining fair value).

 

Observable inputs are developed using market data, such


11 

 

NOTES TO FINANCIAL STATEMENTS as of February 29, 2024 (continued)

 

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)

 

as publicly available information about actual events or transactions, and reflect the assumptions that market participants would use to price the financial instrument. Unobservable inputs are those for which market data are not available and are developed using the best information available about the assumptions that market participants would use to price the financial instrument. GAAP requires valuation techniques to maximize the use of relevant observable inputs and minimize the use of unobservable inputs. When multiple inputs are used to derive fair value, the financial instrument is assigned to the level within the fair value hierarchy based on the lowest-level input that is significant to the fair value of the financial instrument. Input levels are not necessarily an indication of the risk or liquidity associated with financial instruments at that level but rather the degree of judgment used in determining those values.

 

A table summarizing the Fund’s investments under these levels of classification is included within the Portfolio of Investments.

 

Each investment asset or liability of the Fund is assigned a level at measurement date based on the significance and source of the inputs to its valuation. Quoted prices in active markets for identical securities are classified as “Level 1,” inputs other than quoted prices for an asset or liability that are observable are classified as “Level 2” and significant unobservable inputs, including the Sub-Adviser’s or Pricing Committee’s judgment about the assumptions that a market participant would use in pricing an asset or liability are classified as “Level 3.” The inputs used for valuing securities are not necessarily an indication of the risks associated with investing in those securities. Short-term securities of sufficient credit quality are generally considered to be Level 2 securities under applicable accounting rules. A table summarizing the Fund’s investments under these levels of classification is included within the Portfolio of Investments.

 

GAAP requires a reconciliation of the beginning to ending balances for reported fair values that presents changes attributable to total realized and unrealized gains or losses, purchases and sales, and transfers in or out of the Level 3 category during the period. A reconciliation of Level 3 investments is presented only when the Fund has a significant amount of Level 3 investments.

 

B. Securities Transactions and Revenue Recognition. Securities transactions are recorded on the trade date. Realized gains or losses on sales of investments are calculated on the identified cost basis. Interest income is recorded on the accrual basis. Premium amortization and

discount accretion are determined using the effective yield method. Dividend income is recorded on the ex-dividend date or in the case of certain foreign dividends, when the information becomes available to the Fund.

 

C. Foreign Currency Translation. The books and records of the Fund are maintained in U.S. dollars. Any foreign currency amounts are translated into U.S. dollars on the following basis:

 

(1)Market value of investment securities, other assets and liabilities — at the exchange rates prevailing at Market Close.

 

(2)Purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.

 

Although the net assets and the market values are presented at the foreign exchange rates at Market Close, the Fund does not isolate the portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gains or losses from investments. For securities, which are subject to foreign withholding tax upon disposition, liabilities are recorded on the Statement of Assets and Liabilities for the estimated tax withholding based on the securities’ current market value. Upon disposition, realized gains or losses on such securities are recorded net of foreign withholding tax.

 

Reported net realized foreign exchange gains or losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities other than investments in securities, resulting from changes in the exchange rate. Foreign security and currency transactions may involve certain considerations and risks not typically associated with investing in U.S. companies and U.S. government securities. These risks include, but are not limited to, revaluation of currencies and future adverse political and economic developments which could cause securities and their markets to be less liquid and prices more volatile than those of comparable U.S. companies and U.S. government securities. The foregoing risks are even greater with respect to securities of issuers in emerging markets.


12 

 

NOTES TO FINANCIAL STATEMENTS as of February 29, 2024 (continued)

 

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)

 

D. Distributions to Shareholders. The Fund intends to make monthly distributions from its cash available for distribution, which consists of the Fund’s dividends and interest income after payment of Fund expenses, net option premiums and net realized and unrealized gains on investments. Such monthly distributions may also consist of return of capital. At least annually, the Fund intends to distribute all or substantially all of its net realized capital gains. Distributions are recorded on the ex-dividend date. Distributions are determined annually in accordance with federal tax regulations, which may differ from GAAP for investment companies.

 

The tax treatment and characterization of the Fund’s distributions may vary significantly from time to time depending on whether the Fund has gains or losses on the call options written in its portfolio versus gains or losses on the equity securities in the portfolio. Each month, the Fund will provide disclosures with distribution payments made that estimate the percentages of that distribution that represent net investment income, other income or capital gains, and return of capital, if any. The final composition of the tax characteristics of the distributions cannot be determined with certainty until after the end of the Fund’s tax year, and will be reported to shareholders at that time. A significant portion of the Fund’s distributions may constitute a return of capital. The amount of monthly distributions will vary, depending on a number of factors. As portfolio and market conditions change, the rate of dividends on the common shares will change. There can be no assurance that the Fund will be able to declare a dividend in each period.

 

E. Federal Income Taxes. It is the policy of the Fund to comply with the requirements of subchapter M of the Internal Revenue Code that are applicable to regulated investment companies and to distribute substantially all of its net investment income and any net realized capital gains to its shareholders. Therefore, a federal income tax or excise tax provision is not required. Management has considered the sustainability of the Fund’s tax positions taken on federal income tax returns for all open tax years in making this determination. The Fund may utilize equalization accounting for tax purposes, whereby a portion of redemption payments are treated as distributions of income or gain.

 

F.  Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent

assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

 

G. Risk Exposures and the Use of Derivative Instruments. The Fund’s investment objectives permit the Fund to enter into various types of derivatives contracts, including, but not limited to, forward foreign currency exchange contracts and purchased and written options. In doing so, the Fund will employ strategies in differing combinations to permit it to increase or decrease the level of risk, or change the level or types of exposure to risk factors. This may allow the Fund to pursue its objectives more quickly and efficiently, than if it were to make direct purchases or sales of securities capable of affecting a similar response to market or credit factors.

 

In pursuit of its investment objectives, the Fund may seek to increase or decrease its exposure to the following market or credit risk factors:

 

Credit Risk. The price of a bond or other debt instrument is likely to fall if the issuer’s actual or perceived financial health deteriorates, whether because of broad economic or issuer-specific reasons. In certain cases, the issuer could be late in paying interest or principal, or could fail to pay its financial obligations altogether.

 

Equity Risk. Stock prices may be volatile or have reduced liquidity in response to real or perceived impacts of factors including, but not limited to, economic conditions, changes in market interest rates, and political events. Stock markets tend to be cyclical, with periods when stock prices generally rise and periods when stock prices generally decline. Any given stock market segment may remain out of favor with investors for a short or long period of time, and stocks as an asset class may underperform bonds or other asset classes during some periods. Additionally, legislative, regulatory or tax policies or developments in these areas may adversely impact the investment techniques available to a manager, add to costs and impair the ability of the Fund to achieve its investment objectives.

 

Foreign Exchange Rate Risk. To the extent that the Fund invests directly in foreign (non-U.S.) currencies or in securities denominated in, or that trade in, foreign (non-U.S.) currencies, it is subject to the risk that those foreign (non-U.S.) currencies will decline in value relative to the U.S. dollar or, in the case of hedging positions, that the U.S. dollar will decline in value relative to the currency being hedged by the Fund through foreign currency exchange transactions. Currency rates may fluctuate significantly over short periods of time.

 

Currency rates may be affected by changes in market interest rates, intervention (or the failure to intervene) by


13 

 

NOTES TO FINANCIAL STATEMENTS as of February 29, 2024 (continued)

 

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)

 

U.S. or foreign governments, central banks or supranational entities such as the International Monetary Fund, by the imposition of currency controls, or other political or economic developments in the United States or abroad.

 

Interest Rate Risk. Changes in short-term market interest rates will directly affect the yield on Common Shares. If short-term market interest rates fall, the yield on Common Shares will also fall. To the extent that the interest rate spreads on loans in the Fund’s portfolio experience a general decline, the yield on the Common Shares will fall and the value of the Fund’s assets may decrease, which will cause the Fund’s NAV to decrease. Conversely, when short-term market interest rates rise, because of the lag between changes in such short-term rates and the resetting of the floating rates on assets in the Fund’s portfolio, the impact of rising rates will be delayed to the extent of such lag. In the case of inverse securities, the interest rate paid by such securities generally will decrease when the market rate of interest to which the inverse security is indexed increases. With respect to investments in fixed rate instruments, a rise in market interest rates generally causes values of such instruments to fall. The values of fixed rate instruments with longer maturities or duration are more sensitive to changes in market interest rates.

 

As of the date of this report, the United States experiences a rising interest rate environment, which may increase the Fund’s exposure to risks associated with rising market interest rates. Rising market interest rates could have unpredictable effects on the markets and may expose fixed-income and related markets to heightened volatility which could reduce liquidity for certain investments, adversely affect values, and increase costs. If dealer capacity in fixed-income and related markets is insufficient for market conditions, it may further inhibit liquidity and increase volatility in the fixed-income and related markets. Further, recent and potential changes in government policy may affect interest rates.

 

Risks of Investing in Derivatives. The Fund’s use of derivatives can result in losses due to unanticipated changes in the market or credit risk factors and the overall market. In instances where the Fund is using derivatives to decrease, or hedge, exposures to market or credit risk factors for securities held by the Fund, there are also risks that those derivatives may not perform as expected, resulting in losses for the combined or hedged positions.

 

Derivative instruments are subject to a number of risks, including the risk of changes in the market price of the underlying securities, credit risk with respect to the counterparty, risk of loss due to changes in market interest rates and liquidity and volatility risk. The amounts required

to purchase certain derivatives may be small relative to the magnitude of exposure assumed by the Fund. Therefore, the purchase of certain derivatives may have an economic leveraging effect on the Fund and exaggerate any increase or decrease in the NAV. Derivatives may not perform as expected, so the Fund may not realize the intended benefits. When used for hedging purposes, the change in value of a derivative may not correlate as expected with the currency, security or other risk being hedged. When used as an alternative or substitute for direct cash investments, the return provided by the derivative may not provide the same return as direct cash investment. In addition, given their complexity, derivatives expose the Fund to the risk of improper valuation.

 

Generally, derivatives are sophisticated financial instruments whose performance is derived, at least in part, from the performance of an underlying asset or assets. Derivatives include, among other things, swap agreements, options, forwards and futures. Investments in derivatives are generally negotiated over-the-counter (“OTC”) with a single counterparty and as a result are subject to credit risks related to the counterparty’s ability or willingness to perform its obligations; any deterioration in the counterparty’s creditworthiness could adversely affect the value of the derivative. In addition, derivatives and their underlying securities may experience periods of illiquidity which could cause the Fund to hold a security it might otherwise sell, or to sell a security it otherwise might hold at inopportune times or at an unanticipated price. A manager might imperfectly judge the direction of the market. For instance, if a derivative is used as a hedge to offset investment risk in another security, the hedge might not correlate to the market’s movements and may have unexpected or undesired results such as a loss or a reduction in gains.

 

Counterparty Credit Risk and Credit Related Contingent Features. Certain derivative positions are subject to counterparty credit risk, which is the risk that the counterparty will not fulfill its obligation to the Fund. The Fund’s derivative counterparties are financial institutions who are subject to market conditions that may weaken their financial position. The Fund intends to enter into financial transactions with counterparties that it believes to be creditworthy at the time of the transaction. To reduce this risk, the Fund generally enters into master netting arrangements, established within the Fund’s International Swap and Derivatives Association, Inc. (“ISDA”) Master Agreements (“Master Agreements”). These agreements are with select counterparties and they govern transactions, including certain OTC derivative and forward foreign currency contracts, entered into by the Fund and the counterparty. The Master Agreements maintain provisions for general obligations, representations, agreements, collateral, and events of default or termination. The occurrence of a specified event of termination may give


14 

 

NOTES TO FINANCIAL STATEMENTS as of February 29, 2024 (continued)

 

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)

 

a counterparty the right to terminate all of its contracts and affect settlement of all outstanding transactions under the applicable Master Agreement.

 

The Fund may also enter into collateral agreements with certain counterparties to further mitigate counterparty credit risk associated with OTC derivative and forward foreign currency contracts. Subject to established minimum levels, collateral is generally determined based on the net aggregate unrealized gain or loss on contracts with a certain counterparty. Collateral pledged to the Fund is held in a segregated account by a third-party agent and can be in the form of cash or debt securities issued by the U.S. government or related agencies.

 

As of February 29, 2024, the maximum amount of loss the Fund would incur if the counterparties to its derivative transactions failed to perform would be $1,649,560 which represents the gross payments to be received by the Fund on open forward foreign currency contracts were they to be unwound as of February 29, 2024. As of February 29, 2024, the Fund did not receive any cash collateral for its open OTC derivative transactions.

 

The Fund’s master agreements with derivative counterparties have credit related contingent features that if triggered would allow its derivatives counterparties to close out and demand payment or additional collateral to cover their exposure from the Fund. Credit related contingent features are established between the Fund and its derivatives counterparties to reduce the risk that the Fund will not fulfill its payment obligations to its counterparties. These triggering features include, but are not limited to, a percentage decrease in the Fund’s net assets and/or a percentage decrease in the Fund’s NAV, which could cause the Fund to accelerate payment of any net liability owed to the counterparty. The contingent features are established within the Fund’s Master Agreements.

 

Written options by the Fund do not give rise to counterparty credit risk, as written options obligate the Fund to perform and not the counterparty. As of February 29, 2024, the Fund had a liability position of $4,313,969 on written options with credit related contingent features. If a contingent feature would have been triggered as of February 29, 2024, the Fund could have been required to pay this amount in cash to its counterparties. As of February 29, 2024, the Fund had pledged $5,430,000 in cash collateral for its open OTC derivatives transactions. There were no credit events during the year ended February 29, 2024 that triggered any credit related contingent features.

H. Forward Foreign Currency Contracts and Futures Contracts. The Fund may enter into forward foreign currency contracts primarily to hedge against foreign currency exchange rate risks on its non-U.S. dollar denominated investment securities. When entering into a forward foreign currency contract, the Fund agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. These contracts are valued daily and the Fund’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in the statement of assets and liabilities. Realized and unrealized gains and losses on forward foreign currency contracts are included on the Statement of Operations. These instruments involve market and/or credit risk in excess of the amount recognized in the statement of assets and liabilities. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from movement in currency and securities values and interest rates.

 

During the year ended February 29, 2024, the Fund used forward foreign currency contracts to hedge its investments in non-U.S. dollar denominated equity securities in an attempt to decrease the volatility of the Fund’s NAV.

 

During the year ended February 29, 2024, the Fund had average contract amounts on forward foreign currency contracts to buy and sell of $1,249,167 and $63,962,117, respectively. Please refer to the table within the Portfolio of Investments for open forward foreign currency contracts at February 29, 2024.

 

The Fund may enter into futures contracts involving foreign currency, interest rates, securities and securities indices. A futures contract is a commitment to buy or sell a specific amount of a financial instrument at a negotiated price on a stipulated future date. The Fund may buy and sell futures contracts. Futures contracts traded on a commodities or futures exchange will be valued at the final settlement price or official closing price on the principal exchange as reported by such principal exchange at its trading session ending at, or most recently prior to, the time when the Fund’s assets are valued.

 

Upon entering into a futures contract, the Fund is required to deposit either cash or securities (initial margin) in an amount equal to a certain percentage of the contract value. Subsequent payments (variation margin) are made or received by the Fund each day. The variation margin payments are equal to the daily changes in the contract value and are recorded as unrealized gains and losses and, if any, shown as variation margin receivable or payable on futures contracts on the Statement of Assets and Liabilities. Open futures contracts are reported on a table following


15 

 

NOTES TO FINANCIAL STATEMENTS as of February 29, 2024 (continued)

 

 

NOTE 2 — SIGNIFICANT ACCOUNTING POLICIES (continued)

 

the Fund’s Portfolio of Investments. Securities held in collateralized accounts to cover initial margin requirements on open futures contracts are footnoted in the Portfolio of Investments. Cash collateral held by the broker to cover initial margin requirements on open futures contracts are noted in the Fund’s Statement of Assets and Liabilities. The net change in unrealized appreciation and depreciation is reported in the Fund’s Statement of Operations. Realized gains (losses) are reported in the Fund’s Statement of Operations at the closing or expiration of futures contracts.

 

Futures contracts are exposed to the market risk factor of the underlying financial instrument. The Fund purchases and sells futures contracts on various equity indices to enable the Fund to make market directional tactical decisions to enhance returns, to protect against a decline in its assets or as a substitute for the purchase or sale of equity securities. Additional associated risks of entering into futures contracts include the possibility that there may be an illiquid market where the Fund is unable to liquidate the contract or enter into an offsetting position and, if used for hedging purposes, the risk that the price of the contract will correlate imperfectly with the prices of the Fund’s securities. With futures, there is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

 

The Fund did not enter into any futures contracts during the year ended February 29, 2024.

 

I. Options Contracts. The Fund may purchase put and call options and may write (sell) put options and covered call options. The premium received by the Fund upon the writing of a put or call option is included in the Statement of Assets and Liabilities as a liability which is subsequently marked-to-market until it is exercised or closed, or it expires. The Fund will realize a gain or loss upon the expiration or closing of the option contract. When an option is exercised, the proceeds on sales of the underlying security for a written call option or purchased put option or the purchase cost of the security for a written put option or a purchased call option is adjusted by the amount of premium received or paid. The risk in writing a call option is that the Fund gives up the opportunity for profit if the market price of the security increases and the option is exercised. The risk in buying an option is that the Fund pays a premium whether or not the option is exercised. Risks may also arise from an illiquid secondary market or from the inability of counterparties to meet the terms of the contract.

 

The Fund’s option strategy seeks to reduce volatility of total returns and to supplement distributions by selling call

options and the Fund may also purchase put options on equity indices.

 

During the year ended February 29, 2024, the Fund had an average notional amount on written equity options of $228,333,848. Please refer to the table within the Portfolio of Investments for open written equity options at February 29, 2024.

 

J. Indemnifications. In the normal course of business, the Fund may enter into contracts that provide certain indemnifications. The Fund’s maximum exposure under these arrangements is dependent on future claims that may be made against the Fund and, therefore, cannot be estimated; however, based on experience, management considers risk of loss from such claims remote.

 

NOTE 3 — INVESTMENT TRANSACTIONS

 

The cost of purchases and the proceeds from sales of investments for the year ended February 29, 2024, excluding short-term securities, were $314,874,543 and $354,474,098 , respectively.

 

NOTE 4 — INVESTMENT MANAGEMENT FEES

 

The Fund has entered into an investment management agreement (“Management Agreement”) with the Investment Adviser. The Investment Adviser has overall responsibility for the management of the Fund. The Investment Adviser oversees all investment management and portfolio management services for the Fund and assists in managing and supervising all aspects of the general day-to-day business activities and operations of the Fund, including custodial, transfer agency, dividend disbursing, accounting, auditing, compliance and related services. This Management Agreement compensates the Investment Adviser with a management fee, payable monthly, based on an annual rate of 0.85% of the Fund’s average daily managed assets. For purposes of the Management Agreement, managed assets are defined as the Fund’s average daily gross asset value, minus the sum of the Fund’s accrued and unpaid dividends on any outstanding preferred shares and accrued liabilities (other than liabilities for the principal amount of any borrowings incurred, commercial paper or notes issued by the Fund and the liquidation preference of any outstanding preferred shares). As of February 29, 2024, there were no preferred shares outstanding.

 

The Investment Adviser has entered into a sub-advisory agreement with Voya IM. Voya IM provides investment advice for the Fund and is paid by the Investment Adviser based on the average daily managed assets of the Fund. Subject to policies as the Board or the Investment Adviser may determine, Voya IM manages the Fund’s assets in


16 

 

NOTES TO FINANCIAL STATEMENTS as of February 29, 2024 (continued)

 

 

NOTE 4 — INVESTMENT MANAGEMENT FEES (continued)

 

accordance with the Fund’s investment objectives, policies and limitations.

 

NOTE 5 — EXPENSE LIMITATION AGREEMENT

 

The Investment Adviser has entered into a written expense limitation agreement (“Expense Limitation Agreement”) with the Fund under which it will limit the expenses of the Fund, excluding interest, taxes, investment-related costs, leverage expenses, extraordinary expenses, and acquired fund fees and expenses to 1.00% of average daily managed assets.

 

With the exception of the non-recoupable management fee waiver, the Investment Adviser may at a later date recoup from the Fund for fees waived and/or other expenses reimbursed by the Investment Adviser during the previous 36 months, but only if, after such recoupment, the Fund’s expense ratio does not exceed the percentage described above. Waived and reimbursed fees net of any recoupment by the Investment Adviser of such waived and reimbursed fees are reflected on the accompanying Statement of Operations. Amounts payable by the Investment Adviser are reflected on the accompanying Statement of Assets and Liabilities.

 

 

 

NOTE 7 — CAPITAL SHARES

 

Transactions in capital shares and dollars were as follows:

As of February 29, 2024, there are no amounts of waived and/or reimbursed fees that are subject to possible recoupment by the Investment Adviser.

 

The Expense Limitation Agreement is contractual through March 1, 2025 and shall renew automatically for one-year terms. Termination or modification of this obligation requires approval by the Board.

 

NOTE 6 — OTHER TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES

 

The Fund has adopted a deferred compensation plan (the “DC Plan”), which allows eligible independent trustees, as described in the DC Plan, to defer the receipt of all or a portion of the trustees’ fees that they are entitled to receive from the Fund. For purposes of determining the amount owed to the trustee under the DC Plan, the amounts deferred are invested in shares of the funds selected by the trustee (the “Notional Funds”). When the Fund purchases shares of the Notional Funds, which are all advised by Voya Investments, in amounts equal to the trustees’ deferred fees, this results in a Fund asset equal to the deferred compensation liability. Such assets, if applicable, are included as a component of “Other assets” on the accompanying Statement of Assets and Liabilities. Deferral of trustees’ fees under the DC Plan will not affect net assets of the Fund, and will not materially affect the Fund’s assets, liabilities or net investment income per share. Amounts will be deferred until distributed in accordance with the DC Plan.

 

   Shares
repurchased
  Net increase
(decrease) in
shares
outstanding
  Shares
repurchased
  Net increase
(decrease)
Year or period ended  #  #  ($)  ($)
2/29/2024  (883,951)  (883,951)  (4,373,276)  (4,373,276)
2/28/2023  (977,869)  (977,869)  (5,342,366)  (5,342,366)

 

Share Repurchase Program

 

Effective April 1, 2024, pursuant to an open-market share repurchase program, the Fund may purchase, over the period ending March 31, 2025, up to 10% of its stock in open-market transactions. Previously, pursuant to an open-market share repurchase program effective April 1, 2023, the Fund could have purchased, over the one year period ended March 31, 2024, up to 10% of its stock in open market transactions. The amount and timing of the repurchases will be at the discretion of the Fund’s management, subject to market conditions and investment considerations. There is no assurance that the Fund will purchase shares at any

particular discount level or in any particular amounts. Any repurchases made under this program would be made on a national securities exchange at the prevailing market price, subject to exchange requirements and volume, timing and other limitations under federal securities laws. The share repurchase program seeks to enhance shareholder value by purchasing shares trading at a discount from their NAV per share. The open-market share repurchase program does not obligate the Fund to repurchase any dollar amount or number of shares of its stock.

 

For the year ended February 29, 2024, the Fund repurchased 883,951 shares, representing approximately

 17

 

NOTES TO FINANCIAL STATEMENTS as of February 29, 2024 (continued)

 

 

NOTE 7 — CAPITAL SHARES (continued)

 

1.12% of the Fund’s outstanding shares for a net purchase price of $4,373,276 (including commissions of $22,099). Shares were repurchased at a weighted-average discount from NAV per share of 13.88% and a weighted-average price per share of $4.92.

For the year ended February 28, 2023, the Fund repurchased 977,869 shares, representing approximately 1.23% of the Fund’s outstanding shares for a net purchase price of $5,342,366 (including commissions of $24,447). Shares were repurchased at a weighted-average discount from NAV per share of 10.82% and a weighted-average price per share of $5.44.

 

NOTE 8 — FEDERAL INCOME TAXES

 

The amount of distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from GAAP for investment companies. These book/tax differences may be either temporary or permanent. Permanent differences are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences are not reclassified. Key differences include the treatment of foreign currency transactions, income from passive foreign investment companies (PFICs), and wash sale deferrals. Distributions in excess of net investment income and/or net realized capital gains for tax purposes are reported as return of capital.

 

Dividends paid by the Fund from net investment income and distributions of net realized short-term capital gains are, for federal income tax purposes, taxable as ordinary income to shareholders.

 

The tax composition of dividends and distributions in the current period will not be determined until after the Fund's tax year-end of December 31, 2024. The composition of distributions presented below may differ from amounts presented elsewhere in this report due to differences in calculations between GAAP (book) and tax. The tax composition of dividends and distributions paid as of the Fund's most recent tax year-ends was as follows:

 

Tax Year Ended   Tax Year Ended 
December 31, 2023   December 31, 2022 
Ordinary   Return of   Ordinary   Return of 
Income   Capital   Income   Capital 
$14,688,203   $23,444,447    $18,000,577   $20,545,778 

 

The tax-basis components of distributable earnings and the capital loss carryforwards which may be used to offset future realized capital gains for federal income tax purposes as of December 31, 2023 were:

 

Unrealized               Total 
Appreciation/   Capital Loss Carryforwards       Distributable 
(Depreciation)   Amount   Character   Other   Earnings/(Loss) 
                       
$34,081,611   $(54,076,560)   Short-term   $(3,513,293)  $(32,353,600)
      (8,845,358)   Long-term           
     $(62,921,918)               

 

The Fund’s major tax jurisdictions are U.S. federal and Arizona state.

 

As of February 29, 2024, no provision for income tax is required in the Fund's financial statements as a result of tax positions taken on federal and state income tax returns for open tax years. The Fund's federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state department of revenue. Generally, the preceding four tax years remain subject to examination by these jurisdictions.

 

NOTE 9 — LONDON INTERBANK OFFERED RATE (“LIBOR”)

 

The London Interbank Offered Rate (“LIBOR”) was the offered rate for short-term Eurodollar deposits between

major international banks. The terms of investments, financings or other transactions (including certain derivatives transactions) to which the Fund may be a party have historically been tied to LIBOR. In connection with the global transition away from LIBOR led by regulators

 18

 

NOTES TO FINANCIAL STATEMENTS as of February 29, 2024 (continued)

 

 

NOTE 9 — LONDON INTERBANK OFFERED RATE (“LIBOR”) (continued)

 

and market participants, LIBOR was last published on a representative basis at the end of June 2023. Alternative reference rates to LIBOR have been established in most major currencies and markets in these new rates are continuing to develop. The transition away from LIBOR to the use of replacement rates has gone relatively smoothly on the Fund and the financial instruments in which it invests; however, longer-term impacts are still uncertain.

 

In addition, interest rates or other types of rates and indices which are classed as “benchmarks” have been the subject of ongoing national and international regulatory reform, including under the European Union regulation on indices used as benchmarks in financial instruments and financial contracts (known as the “Benchmarks Regulation”). The Benchmarks Regulation has been enacted into United Kingdom law by virtue of the European Union (Withdrawal) Act 2018 (as amended), subject to amendments made by the Benchmarks (Amendment and Transitional Provision) (EU Exit) Regulations 2019 (SI 2019/657) and other statutory instruments. Following the implementation of these reforms, the manner of administration of benchmarks has changed and may further change in the future, with the result that relevant benchmarks may perform differently than in the past, the use of benchmarks that are not compliant with the new standards by certain supervised entities may be restricted, and certain benchmarks may be eliminated entirely. Such changes could cause increased market volatility and disruptions in liquidity for instruments that rely on or are impacted by such benchmarks. Additionally, there could be other consequences which cannot be predicted.

 

NOTE 10 — MARKET DISRUPTION AND GEOPOLITICAL

 

The Fund is subject to the risk that geopolitical events will disrupt securities markets and adversely affect global economies and markets. Due to the increasing interdependence among global economies and markets, conditions in one country, market, or region might adversely impact markets, issuers and/or foreign exchange rates in other countries, including the United States. Wars, terrorism, global health crises and pandemics, and other geopolitical events that have led, and may continue to lead, to increased market volatility and may have adverse short- or long-term effects on U.S. and global economies and markets, generally. For example, the COVID-19 pandemic resulted in significant market volatility, exchange suspensions and closures, declines in global financial markets, higher default rates, supply chain disruptions, and a substantial economic downturn in economies throughout the world. The economic impacts of COVID-19 have created a unique

challenge for real estate markets. Many businesses have either partially or fully transitioned to a remote-working environment and this transition may negatively impact the occupancy rates of commercial real estate over time. Natural and environmental disasters and systemic market dislocations are also highly disruptive to economies and markets. In addition, military action by Russia in Ukraine has, and may continue to, adversely affect global energy and financial markets and therefore could affect the value of investments, including beyond those with direct exposure to Russian issuers or nearby geographic regions. The extent and duration of the military action, sanctions, and resulting market disruptions are impossible to predict and could be substantial. A number of U.S. domestic banks and foreign (non-U.S.) banks have recently experienced financial difficulties and, in some cases, failures. There can be no certainty that the actions taken by regulators to limit the effect of those financial difficulties and failures on other banks or other financial institutions or on the U.S. or foreign (non-U.S.) economies generally will be successful. It is possible that more banks or other financial institutions will experience financial difficulties or fail, which may affect adversely other U.S. or foreign (non-U.S.) financial institutions and economies. These events as well as other changes in foreign (non-U.S.) and domestic economic, social, and political conditions also could adversely affect individual issuers or related groups of issuers, securities markets, interest rates, credit ratings, inflation, investor sentiment, and other factors affecting the value of the Fund’s investments. Any of these occurrences could disrupt the operations of the Fund and of the Fund’s service providers.

 

NOTE 11 — SUBSEQUENT EVENTS

 

Dividends: Subsequent to February 29, 2024, the Fund made distributions of:

 

Per Share  Declaration  Payable  Record
Amount  Date  Date  Date
$0.040  2/15/2024  3/15/2024  3/4/2024
$0.040  3/15/2024  4/15/2024  4/2/2024

 

Each month, the Fund will provide disclosures with distribution payments made that estimate the percentages of that distribution that represent net investment income, capital gains, and return of capital, if any. A significant portion of the monthly distribution payments made by the Fund may constitute a return of capital.

 

The Fund has evaluated events occurring after the Statement of Assets and Liabilities date through the date that the financial statements were issued (“subsequent events”) to determine whether any subsequent events necessitated adjustment to or disclosure in the financial statements. Other than the above, no such subsequent events were identified.

 19

 

Voya Global Equity Dividend PORTFOLIO OF INVESTMENTS
and Premium Opportunity Fund as of February 29, 2024

 

 

Shares      Value   Percentage
of Net
Assets
 
COMMON STOCK: 97.5%          
    Australia: 2.3%          
54,666   Ampol Ltd.  $1,401,358    0.3 
304,389   Aurizon Holdings Ltd.   754,406    0.2 
194,958   Brambles Ltd.   1,914,293    0.4 
428,226   Medibank Pvt Ltd.   1,000,753    0.2 
147,221   QBE Insurance Group Ltd.   1,656,972    0.4 
968,460   Telstra Group Ltd.   2,406,349    0.5 
178,905   Transurban Group   1,576,552    0.3 
        10,710,683    2.3 
    Bermuda: 1.0%          
33,218   Axis Capital Holdings Ltd.   2,078,450    0.4 
7,007   Everest Re Group Ltd.   2,584,742    0.6 
        4,663,192    1.0 
    Brazil: 0.4%          
80,679   XP, Inc. - Class A   1,907,252    0.4 
               
    Canada: 2.2%          
38,905   Cenovus Energy, Inc.   677,967    0.2 
17,368   iA Financial Corp., Inc.   1,077,030    0.2 
30,862   Parkland Corp.   987,157    0.2 
17,690   Pembina Pipeline Corp.   615,627    0.1 
15,637   Rogers Communications, Inc. - Class B   692,008    0.2 
53,601   Suncor Energy, Inc.   1,841,664    0.4 
29,990   TELUS Corp.   523,054    0.1 
18,294   Thomson Reuters Corp.   2,887,895    0.6 
10,481   West Fraser Timber Co. Ltd.   843,484    0.2 
        10,145,886    2.2 
    Denmark: 0.6%          
94,408   Danske Bank A/S   2,777,498    0.6 
               
    Finland: 0.5%          
9,502   Elisa Oyj   427,953    0.1 
166,349   Nordea Bank Abp   2,024,552    0.4 
        2,452,505    0.5 
    France: 2.2%          
80,642   AXA SA   2,871,011    0.6 
16,163   BNP Paribas SA   970,105    0.2 
59,243   Getlink SE   1,011,486    0.2 
227,571   Orange SA   2,608,641    0.6 
14,890   Sanofi   1,419,236    0.3 
8,115   Thales SA   1,203,566    0.3 
        10,084,045    2.2 
    Germany: 1.1%          
7,492   Allianz SE   2,057,720    0.4 
31,586   Daimler Truck Holding AG   1,290,429    0.3 
7,442   Heidelberg Materials AG   722,611    0.2 
12,664 (1)   Scout24 SE   920,860    0.2 
        4,991,620    1.1 
    Hong Kong: 1.5%          
561,000   BOC Hong Kong Holdings Ltd.   1,473,865    0.3 
310,500   CK Hutchison Holdings Ltd.   1,568,361    0.3 
489,000   Hang Lung Properties Ltd.   524,851    0.1 
21,500   Jardine Matheson Holdings Ltd.   901,172    0.2 
143,100   Link REIT   709,577    0.2 
Shares      Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)          
    Hong Kong (continued)          
195,500   Power Assets Holdings Ltd.  $1,173,225    0.2 
440,000   SITC International Holdings Co. Ltd.   724,507    0.2 
        7,075,558    1.5 
    Israel: 0.2%          
103,000   Bank Leumi Le-Israel BM   863,620    0.2 
               
    Italy: 1.4%          
817,152   Intesa Sanpaolo SpA   2,602,148    0.6 
97,291 (1)   Poste Italiane SpA   1,141,161    0.2 
76,239   UniCredit SpA   2,553,599    0.6 
        6,296,908    1.4 
    Japan: 6.9%          
76,500   Asahi Kasei Corp.   532,285    0.1 
109,200   Central Japan Railway Co.   2,746,367    0.6 
67,300   Chubu Electric Power Co., Inc.   837,633    0.2 
48,000   Daiwa House Industry Co. Ltd.   1,385,974    0.3 
388,600   ENEOS Holdings, Inc.   1,676,649    0.4 
34,100   Japan Airlines Co. Ltd.   636,857    0.1 
88,300   Japan Post Bank Co. Ltd.   941,517    0.2 
303,300   Japan Post Holdings Co. Ltd.   2,927,204    0.6 
126,100   Japan Tobacco, Inc.   3,275,637    0.7 
18,600   NEC Corp.   1,255,449    0.3 
1,279,900   Nippon Telegraph & Telephone Corp.   1,556,571    0.3 
20,200   Nitto Denko Corp.   1,857,269    0.4 
5,300   Obic Co. Ltd.   830,002    0.2 
30,700   ORIX Corp.   645,024    0.1 
62,000   SCSK Corp.   1,143,568    0.3 
22,900   Secom Co. Ltd.   1,671,063    0.4 
29,700   Seiko Epson Corp.   480,772    0.1 
47,600   Sekisui Chemical Co. Ltd.   671,135    0.1 
112,000   Sekisui House Ltd.   2,494,877    0.5 
47,300   Sumitomo Mitsui Financial Group, Inc.   2,635,299    0.6 
47,000   Takeda Pharmaceutical Co. Ltd.   1,374,572    0.3 
35,800   USS Co. Ltd.   623,179    0.1 
        32,198,903    6.9 
    Jordan: 0.2%          
39,010   Hikma Pharmaceuticals PLC   968,114    0.2 
               
    Netherlands: 1.8%          
714,903   Koninklijke KPN NV   2,613,303    0.6 
60,368   NN Group NV   2,694,088    0.6 
18,969   Wolters Kluwer NV   2,995,585    0.6 
        8,302,976    1.8 
    New Zealand: 0.1%          
161,319   Spark New Zealand Ltd.   497,971    0.1 
               
    Norway: 0.3%          
56,055   Aker BP ASA   1,360,661    0.3 
               
    Singapore: 0.3%          
1,513,200   Genting Singapore Ltd.   1,024,028    0.2 

 

See Accompanying Notes to Financial Statements

 20

 

Voya Global Equity Dividend PORTFOLIO OF INVESTMENTS
and Premium Opportunity Fund as of February 29, 2024 (continued)

 

 

Shares      Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)          
    Singapore (continued)      
45,700   Oversea-Chinese Banking Corp. Ltd.  $441,412    0.1 
        1,465,440    0.3 
    Spain: 1.9%          
28,755   ACS Actividades de Construccion y Servicios SA   1,182,495    0.3 
7,694 (1)   Aena SME SA   1,461,782    0.3 
53,905   Industria de Diseno Textil SA   2,398,134    0.5 
66,882   Red Electrica Corp. SA   1,064,117    0.2 
90,552   Repsol SA   1,438,426    0.3 
343,497   Telefonica SA   1,409,224    0.3 
        8,954,178    1.9 
    Sweden: 0.7%          
104,197   Svenska Handelsbanken AB - Class A   1,246,178    0.3 
30,738   Swedbank AB - Class A   676,017    0.1 
480,354   Telia Co. AB   1,143,304    0.3 
        3,065,499    0.7 
    Switzerland: 1.3%          
36,760   Holcim AG   3,000,335    0.6 
23,423   Novartis AG, Reg   2,363,324    0.5 
3,387   Roche Holding AG   885,569    0.2 
        6,249,228    1.3 
    United Kingdom: 4.2%          
153,366   Amcor PLC   1,389,496    0.3 
179,268   BAE Systems PLC   2,813,927    0.6 
92,593   British American Tobacco PLC   2,751,087    0.6 
391,032   Centrica PLC   622,163    0.1 
31,838   GSK PLC   666,006    0.1 
109,539   Imperial Brands PLC   2,359,737    0.5 
161,370   Sage Group PLC   2,542,013    0.6 
57,062   Smiths Group PLC   1,161,756    0.3 
486,099   Vodafone Group PLC   426,997    0.1 
33,363   Whitbread PLC   1,393,582    0.3 
11,953   Willis Towers Watson PLC   3,258,507    0.7 
        19,385,271    4.2 
    United States: 66.4%          
44,632   AbbVie, Inc.   7,857,464    1.7 
2,859   Acuity Brands, Inc.   718,295    0.2 
20,492   AECOM   1,820,304    0.4 
39,184   Agree Realty Corp.   2,153,161    0.5 
8,207   ALLETE, Inc.   464,845    0.1 
10,246   Allison Transmission Holdings, Inc.   771,831    0.2 
81,156   Altria Group, Inc.   3,320,092    0.7 
28,031   Amdocs Ltd.   2,556,427    0.6 
38,431   American Electric Power Co., Inc.   3,273,937    0.7 
1,402   Ameriprise Financial, Inc.   571,119    0.1 
14,180   AmerisourceBergen Corp.   3,340,808    0.7 
14,541   AMETEK, Inc.   2,619,997    0.6 
16,829   Amgen, Inc.   4,608,285    1.0 
7,365   Aon PLC - Class A   2,327,266    0.5 
46,331   Apartment Income REIT Corp.   1,404,756    0.3 
18,170   AptarGroup, Inc.   2,552,158    0.6 
Shares      Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)          
    United States (continued)      
13,663   Assurant, Inc.  $2,479,151    0.5 
12,738   Atmos Energy Corp.   1,438,248    0.3 
10,424   Automatic Data Processing, Inc.   2,617,779    0.6 
4,173   AvalonBay Communities, Inc.   738,746    0.2 
49,090   Avnet, Inc.   2,287,103    0.5 
78,096   Baker Hughes Co.   2,310,861    0.5 
78,690   Bristol-Myers Squibb Co.   3,993,518    0.9 
38,518   Brixmor Property Group, Inc.   870,892    0.2 
15,761   Brown & Brown, Inc.   1,327,234    0.3 
25,777   Cardinal Health, Inc.   2,886,508    0.6 
44,038   Chevron Corp.   6,694,216    1.4 
24,763   Church & Dwight Co., Inc.   2,479,272    0.5 
13,649   Cigna Group   4,587,975    1.0 
3,279   Cintas Corp.   2,061,212    0.4 
110,683   Cisco Systems, Inc.   5,353,737    1.2 
53,986   Citigroup, Inc.   2,995,683    0.6 
15,325   CME Group, Inc.   3,376,864    0.7 
23,477   CNO Financial Group, Inc.   626,601    0.1 
24,868   Coca-Cola Co.   1,492,577    0.3 
42,309   Colgate-Palmolive Co.   3,660,575    0.8 
41,750   Commerce Bancshares, Inc.   2,172,670    0.5 
70,664   Coterra Energy, Inc.   1,821,718    0.4 
18,173   CSX Corp.   689,484    0.1 
52,727   CVS Health Corp.   3,921,307    0.8 
58,997   Dow, Inc.   3,296,752    0.7 
38,578   DT Midstream, Inc.   2,223,250    0.5 
21,457   DTE Energy Co.   2,324,866    0.5 
41,207   Edison International   2,802,900    0.6 
23,555   Electronic Arts, Inc.   3,285,451    0.7 
4,899   Elevance Health, Inc.   2,455,624    0.5 
24,109   Emerson Electric Co.   2,576,047    0.6 
12,217   EOG Resources, Inc.   1,398,358    0.3 
96,934   Equitrans Midstream Corp.   1,036,224    0.2 
46,002   Equity Residential   2,769,780    0.6 
5,202   Erie Indemnity Co. - Class A   2,116,590    0.5 
35,129   Essent Group Ltd.   1,881,861    0.4 
49,600   Evergy, Inc.   2,457,184    0.5 
21,457   Fortive Corp.   1,826,634    0.4 
50,553   Gaming and Leisure Properties, Inc.   2,299,150    0.5 
45,246   General Mills, Inc.   2,903,888    0.6 
15,237   General Motors Co.   624,412    0.1 
24,393   Genpact Ltd.   829,362    0.2 
65,716   Gentex Corp.   2,400,605    0.5 
16,846   Genuine Parts Co.   2,514,434    0.5 
49,443   Gilead Sciences, Inc.   3,564,840    0.8 
51,939   H&R Block, Inc.   2,542,414    0.5 
38,236   Hartford Financial Services Group, Inc.   3,664,538    0.8 
7,901   HF Sinclair Corp.   438,506    0.1 
5,396   Humana, Inc.   1,890,327    0.4 
4,072   Ingredion, Inc.   478,989    0.1 
16,913   International Bancshares Corp.   877,616    0.2 

 

See Accompanying Notes to Financial Statements

 21

 

Voya Global Equity Dividend PORTFOLIO OF INVESTMENTS
and Premium Opportunity Fund as of February 29, 2024 (continued)

 

 

Shares      Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)          
    United States (continued)      
20,334   Iridium Communications, Inc.  $588,669    0.1 
52,584   Johnson & Johnson   8,486,006    1.8 
12,102   JPMorgan Chase & Co.   2,251,698    0.5 
24,130   Kimberly-Clark Corp.   2,923,832    0.6 
26,758   Leidos Holdings, Inc.   3,421,278    0.7 
22,088   LKQ Corp.   1,154,982    0.3 
1,422   Lockheed Martin Corp.   608,957    0.1 
38,463   Loews Corp.   2,889,725    0.6 
17,742   Marsh & McLennan Cos., Inc.   3,588,674    0.8 
4,192   McDonald's Corp.   1,225,238    0.3 
5,125   McKesson Corp.   2,672,226    0.6 
64,184   Merck & Co., Inc.   8,160,996    1.8 
35,381   MetLife, Inc.   2,467,471    0.5 
134,792   MGIC Investment Corp.   2,681,013    0.6 
6,523   Mondelez International, Inc. - Class A   476,636    0.1 
24,783   MSC Industrial Direct Co., Inc. - Class A   2,501,596    0.5 
28,840   National Fuel Gas Co.   1,405,662    0.3 
61,705   National Retail Properties, Inc.   2,510,776    0.5 
24,274   NetApp, Inc.   2,163,299    0.5 
3,273   NewMarket Corp.   2,100,186    0.5 
70,479   NiSource, Inc.   1,836,683    0.4 
35,022   NorthWestern Corp.   1,678,254    0.4 
3,170   NVIDIA Corp.   2,507,850    0.5 
11,631   ONE Gas, Inc.   693,208    0.2 
25,096   OneMain Holdings, Inc.   1,185,284    0.3 
67,657   Patterson Cos., Inc.   1,832,828    0.4 
34,581   PepsiCo, Inc.   5,717,623    1.2 
64,522   Pfizer, Inc.   1,713,704    0.4 
48,717   Philip Morris International, Inc.   4,382,581    0.9 
26,229   Phillips 66   3,737,895    0.8 
28,413   Pinnacle West Capital Corp.   1,941,460    0.4 
9,240   PPG Industries, Inc.   1,308,384    0.3 
37,440   Procter & Gamble Co.   5,950,714    1.3 
13,715   Qualcomm, Inc.   2,164,090    0.5 
14,050   Reinsurance Group of America, Inc.   2,484,743    0.5 
8,326   Reliance Steel & Aluminum Co.   2,674,478    0.6 
168,693   Rithm Capital Corp.   1,828,632    0.4 
55,578   Rollins, Inc.   2,449,322    0.5 
16,608   Ryder System, Inc.   1,894,973    0.4 
29,334   Sempra Energy   2,070,980    0.4 
7,881   Sherwin-Williams Co.   2,616,728    0.6 
9,808   Snap-on, Inc.   2,703,673    0.6 
31,893   Sonoco Products Co.   1,807,695    0.4 
41,700   SS&C Technologies Holdings, Inc.   2,658,792    0.6 
30,094   Synchrony Financial   1,242,882    0.3 
28,175   TEGNA, Inc.   394,732    0.1 
23,420   Texas Instruments, Inc.   3,918,869    0.8 
17,757   Travelers Cos., Inc.   3,923,587    0.8 
5,937   UnitedHealth Group, Inc.   2,930,503    0.6 
55,542   Unum Group   2,746,552    0.6 
Shares      Value   Percentage
of Net
Assets
 
COMMON STOCK: (continued)          
    United States (continued)  
24,149   Valero Energy Corp.  $3,416,118    0.7 
133,182   Verizon Communications, Inc.   5,329,944    1.1 
93,410   VICI Properties, Inc.   2,795,761    0.6 
72,277   Wells Fargo & Co.   4,017,878    0.9 
118,296   Wendy's Co.   2,142,341    0.5 
7,036   Xcel Energy, Inc.   370,727    0.1 
        308,074,666    66.4   
    Total Common Stock          
    (Cost $402,665,495)   452,491,674    97.5   
           
EXCHANGE-TRADED FUNDS: 0.9%          
24,375   iShares MSCI EAFE Value ETF   1,271,156    0.3 
18,257   iShares Russell 1000 Value ETF   3,126,694    0.6 
        4,397,850    0.9 
               
    Total Exchange-Traded Funds          
    (Cost $4,264,661)   4,397,850    0.9 
    Total Long-Term Investments          
    (Cost $406,930,156)   456,889,524    98.4   
               
           
SHORT-TERM INVESTMENTS: 0.8%          
    Mutual Funds: 0.8%      
3,756,000 (2)   Goldman Sachs Financial Square Government Fund, Institutional Class, 5.190% (Cost $3,756,000)  $3,756,000    0.8 
               
    Total Short-Term Investments          
    (Cost $3,756,000)   3,756,000    0.8 
    Total Investments in Securities          
    (Cost $410,686,156)  $460,645,524    99.2   
    Assets in Excess of Other Liabilities   3,627,322    0.8 
    Net Assets  $464,272,846    100.0    

 

(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)Rate shown is the 7-day yield as of February 29, 2024.

 

See Accompanying Notes to Financial Statements

 22

 

Voya Global Equity Dividend PORTFOLIO OF INVESTMENTS
and Premium Opportunity Fund as of February 29, 2024 (continued)

 

 

   Percentage
Sector Diversification  of Net Assets
Financials   21.7%
Health Care   15.6 
Industrials   13.2 
Consumer Staples   9.1 
Energy   7.1 
Information Technology   5.9 
Utilities   5.7 
Communication Services   5.4 
Materials   5.3 
Consumer Discretionary   4.6 
Real Estate   3.9 
Exchange-Traded Funds   0.9 
Short-Term Investments   0.8 
Assets in Excess of Other Liabilities   0.8 
Net Assets   100.0%

 

Portfolio holdings are subject to change daily.

 

See Accompanying Notes to Financial Statements

 23

 

Voya Global Equity Dividend PORTFOLIO OF INVESTMENTS
and Premium Opportunity Fund as of February 29, 2024 (continued)

 

 

Fair Value Measurements^

 

The following is a summary of the fair valuations according to the inputs used as of February 29, 2024 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
February 29, 2024
 
Asset Table                    
Investments, at fair value                    
Common Stock                    
Australia  $   $10,710,683   $   $10,710,683 
Bermuda   4,663,192            4,663,192 
Brazil   1,907,252            1,907,252 
Canada   10,145,886            10,145,886 
Denmark       2,777,498        2,777,498 
Finland       2,452,505        2,452,505 
France       10,084,045        10,084,045 
Germany       4,991,620        4,991,620 
Hong Kong   901,172    6,174,386        7,075,558 
Israel       863,620        863,620 
Italy       6,296,908        6,296,908 
Japan       32,198,903        32,198,903 
Jordan       968,114        968,114 
Netherlands       8,302,976        8,302,976 
New Zealand   497,971            497,971 
Norway       1,360,661        1,360,661 
Singapore       1,465,440        1,465,440 
Spain       8,954,178        8,954,178 
Sweden       3,065,499        3,065,499 
Switzerland       6,249,228        6,249,228 
United Kingdom   4,648,003    14,737,268        19,385,271 
United States   308,074,666            308,074,666 
Total Common Stock   330,838,142    121,653,532        452,491,674 
Exchange-Traded Funds   4,397,850            4,397,850 
Short-Term Investments   3,756,000            3,756,000 
Total Investments, at fair value  $338,991,992   $121,653,532   $   $460,645,524 
Other Financial Instruments+                    
Forward Foreign Currency Contracts       1,649,560        1,649,560 
Total Assets  $338,991,992   $123,303,092   $   $462,295,084 
Liabilities Table                    
Other Financial Instruments+                    
Written Options  $   $(4,313,969)  $   $(4,313,969)
Total Liabilities  $   $(4,313,969)  $   $(4,313,969)

 

 

^See Note 2, “Significant Accounting Policies” in the Notes to Financial Statements for additional information.

#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.

+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 fair valued at the unrealized appreciation (depreciation) on the instrument. OTC swaps and written options are valued at the fair value of the instrument.

 

See Accompanying Notes to Financial Statements

 24

 

Voya Global Equity Dividend PORTFOLIO OF INVESTMENTS
and Premium Opportunity Fund as of February 29, 2024 (continued)

 

 

At February 29, 2024, the following forward foreign currency contracts were outstanding for Voya Global Equity Dividend and Premium Opportunity Fund:

 

Currency Purchased  Currency Sold  Counterparty  Settlement Date  Unrealized
Appreciation
(Depreciation)
 
USD  16,304,115   JPY  2,280,000,000   The Bank of New York Mellon  03/19/24  $1,058,888 
USD  20,054,586   EUR  18,300,000   The Bank of New York Mellon  03/19/24   263,413 
USD  5,387,016   AUD  8,000,000   The Bank of New York Mellon  03/19/24   184,473 
USD  5,092,927   CAD  6,800,000   The Bank of New York Mellon  03/19/24   81,286 
USD  8,014,740   GBP  6,300,000   The Bank of New York Mellon  03/19/24   61,500 
                    $1,649,560 

 

At February 29, 2024, the following OTC written equity options were outstanding for Voya Global Equity Dividend and Premium Opportunity Fund:

 

      Put/  Expiration  Exercise  Number of  Notional   Premiums     
Description  Counterparty  Call  Date  Price  Contracts  Amount   Received   Fair Value 
Consumer Staples                                   
Select Sector SPDR                                   
Fund  Citibank N.A.  Call  03/22/24  USD  73.840  452,743  USD  33,706,716   $335,981   $(549,317)
Financial Select Sector                                   
SPDR Fund  Citibank N.A.  Call  04/05/24  USD  40.700  1,709,678  USD  68,968,411    953,658    (920,954)
FTSE 100 Index  UBS AG  Call  03/08/24  GBP  7,711.440  5,108  GBP  38,974,142    391,333    (65,676)
Health Care Select                                   
Sector SPDR Fund  Citibank N.A.  Call  04/05/24  USD  149.340  171,784  USD  24,877,759    275,335    (74,692)
Industrial Select Sector  Royal Bank of                                
SPDR Fund  Canada  Call  03/22/24  USD  118.120  274,476  USD  33,211,596    398,347    (975,142)
Nikkei 225 Index  BNP Paribas  Call  03/08/24  JPY  36,108.580  84,470  JPY  3,308,368,069    371,381    (1,728,188)
                            $2,726,035   $(4,313,969)

 

Currency Abbreviations:
 
AUD Australian Dollar
CAD Canadian Dollar
EUR EU Euro
GBP British Pound
JPY Japanese Yen
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 February 29, 2024 was as follows:

 

   Location on Statement    
Derivatives not accounted for as hedging instruments  of Assets and Liabilities  Fair Value 
Asset Derivatives        
Foreign exchange contracts  Unrealized appreciation on forward foreign currency contracts  $1,649,560 
Total Asset Derivatives     $1,649,560 
Liability Derivatives        
Equity contracts  Written options, at fair value  $4,313,969 
Total Liability Derivatives     $4,313,969 

 

See Accompanying Notes to Financial Statements

 25

 

Voya Global Equity Dividend PORTFOLIO OF INVESTMENTS
and Premium Opportunity Fund as of February 29, 2024 (continued)

 

 

The effect of derivative instruments on the Fund's Statement of Operations for the year ended February 29, 2024 was as follows:

 

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income

 

Derivatives not accounted for as hedging instruments  Forward
foreign
currency
contracts
   Written
options
   Total 
Equity contracts  $   $(10,053,002)  $(10,053,002)
Foreign exchange contracts   786,248        786,248 
Total  $786,248   $(10,053,002)  $(9,266,754)

 

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income

 

Derivatives not accounted for as hedging instruments  Forward
foreign
currency
contracts
   Written
options
   Total 
Equity contracts  $   $(3,941,286)  $(3,941,286)
Foreign exchange contracts   1,109,143        1,109,143 
Total  $1,109,143   $(3,941,286)  $(2,832,143)

 

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 February 29, 2024:

 

   BNP Paribas   Citibank N.A.   Royal Bank of
Canada
   The Bank
of New York
Mellon
   UBS AG   Total 
Assets:                        
Forward foreign currency contracts  $   $   $   $1,649,560   $   $1,649,560 
Total Assets  $   $   $   $1,649,560   $   $1,649,560 
Liabilities:                              
Written options  $1,728,188</