Global High income Fund, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-07540

 

 

Global High Income Fund Inc.

 

 

(Exact name of registrant as specified in charter)

1285 Avenue of the Americas, New York, New York 10019-6028

 

 

(Address of principal executive offices) (Zip code)

Mark F. Kemper, Esq.

UBS Asset Management

1285 Avenue of the Americas

New York, NY 10019-6028

(Name and address of agent for service)

Copy to:

Jack W. Murphy, Esq.

Dechert LLP

1900 K Street, N.W.

Washington, DC 20006

Registrant’s telephone number, including area code: 212-821 3000

Date of fiscal year end: October 31

Date of reporting period: January 31, 2016

Item 1.  Schedule of Investments

Global High Income Fund Inc.

 

Industry diversification (unaudited)

As a percentage of net assets

As of January 31, 2016

 

 

  

Bonds

   

Corporate bonds

   

Banks

      4.64 % 

Building products

      0.12   

Capital markets

      0.64   

Chemicals

      0.39   

Construction & engineering

      0.11   

Construction materials

      0.09   

Consumer finance

      0.23   

Diversified financial services

      3.14   

Electric utilities

      1.37   

Electrical equipment

      1.11   

Food & staples retailing

      0.11   

Food products

      0.11   

Hotels, restaurants & leisure

      0.11   

Independent power and renewable electricity producers

      0.22   

Marine

      0.26   

Metals & mining

      0.43   

Multiline retail

      0.10   

Oil, gas & consumable fuels

      7.43   

Road & rail

      1.08   

Transportation infrastructure

      0.52   

Wireless telecommunication services

      0.11   
  

 

 

  

Total corporate bonds

      22.32 % 

Non-US government obligations

      73.07   

Supranational bond

      0.07   
  

 

 

  

Total bonds

      95.46 % 

Short-term investment

      2.21   
  

 

 

  

Total investments

      97.67 % 

Cash and other assets, less liabilities

      2.33   
  

 

 

  

Net assets

      100.00 % 
  

 

 

  

    

 

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds: 95.46%

      

Corporate bonds: 22.32%

      

Azerbaijan: 0.09%

      

State Oil Co. of the Azerbaijan
Republic,

      

6.950%, due 03/18/30

    $ 200,000       $ 163,700   
     

 

 

  

Brazil: 0.58%

      

Caixa Economica Federal,

      

2.375%, due 11/06/171

      200,000         186,060   

Petrobras Global Finance BV,

      

4.875%, due 03/17/20

      420,000         312,955   

5.375%, due 01/27/21

      670,000         504,175   

5.750%, due 01/20/20

      125,000         97,606   
     

 

 

  
        1,100,796   
     

 

 

  

Chile: 1.03%

      

Colbun SA,

      

4.500%, due 07/10/242

      200,000         193,678   

Corp. Nacional del Cobre de Chile,

      

4.500%, due 09/16/251

      840,000         802,889   

Empresa Electrica Angamos SA,

      

4.875%, due 05/25/291

      250,000         216,250   

Empresa Electrica Guacolda SA,

      

4.560%, due 04/30/251

      300,000         268,125   

Empresa Nacional de
Telecomunicaciones SA,

      

4.875%, due 10/30/242

      210,000         202,755   

Empresa Nacional del Petroleo,

      

4.750%, due 12/06/212

      250,000         250,000   
     

 

 

  
        1,933,697   
     

 

 

  

China: 2.90%

      

BOC Aviation Pte Ltd.,

      

3.000%, due 03/30/201

      425,000         425,443   

Charming Light Investments Ltd.,

      

3.750%, due 09/03/19

      200,000         202,748   

5.000%, due 09/03/24

      200,000         205,217   

China Cinda Finance 2014 Ltd.,

      

4.000%, due 05/14/192

      200,000         204,690   

5.625%, due 05/14/242

      450,000         472,644   

CNOOC Curtis Funding No 1 Pty Ltd.,

      

4.500%, due 10/03/231

      235,000         243,392   

CNOOC Finance 2015 USA LLC,

      

3.500%, due 05/05/25

      950,000         919,524   

Dianjian Haixing Ltd.,

      

4.050%, due 10/21/193,4

      200,000         203,250   

Golden Eagle Retail Group Ltd.,

      

4.625%, due 05/21/232

      250,000         186,311   

Huarong Finance II Co. Ltd.,

      

5.500%, due 01/16/25

      500,000         522,711   

King Power Capital Ltd.,

      

5.625%, due 11/03/24

      200,000         211,963   

Prosperous Ray Ltd.,

      

4.625%, due 11/12/232

      200,000         214,076   

Sinochem Overseas Capital Co., Ltd.,

      

4.500%, due 11/12/201

      200,000         212,000   

4.500%, due 11/12/202

      265,000         280,900   

Sinopec Group Overseas
Development 2014 Ltd.,

      

4.375%, due 04/10/241

      710,000         747,250   

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Corporate bonds — (continued)

      

China — (concluded)

      

Three Gorges Finance I Cayman
Islands Ltd.,

      

3.700%, due 06/10/251

    $ 200,000       $ 208,387   
     

 

 

  
        5,460,506   
     

 

 

  

Colombia: 0.22%

      

Bancolombia SA,

      

5.125%, due 09/11/22

      210,000         200,550   

Ecopetrol SA,

      

7.375%, due 09/18/43

      285,000         217,669   
     

 

 

  
        418,219   
     

 

 

  

Croatia: 0.23%

      

Agrokor DD,

      

8.875%, due 02/01/201

      200,000         209,750   

Hrvatska Elektroprivreda,

      

5.875%, due 10/23/221

      225,000         228,938   
     

 

 

  
        438,688   
     

 

 

  

Ecuador: 0.20%

      

EP PetroEcuador via Noble
Sovereign Funding I Ltd.,

      

6.224%, due 09/24/192,3

      473,684         367,697   
     

 

 

  

India: 1.12%

      

Canara Bank/London,

      

6.365%, due 11/28/213

      650,000         652,606   

ICICI Bank Ltd.,

      

6.375%, due 04/30/222,3

      1,450,000         1,462,470   
     

 

 

  
        2,115,076   
     

 

 

  

Indonesia: 1.32%

      

Majapahit Holding BV,

      

7.250%, due 06/28/171

      100,000         105,895   

Pelabuhan Indonesia II PT,

      

4.250%, due 05/05/251

      550,000         488,125   

Pertamina Persero PT,

      

4.300%, due 05/20/231

      200,000         180,750   

5.625%, due 05/20/431

      200,000         155,725   

6.000%, due 05/03/421

      1,700,000         1,386,061   

6.500%, due 05/27/412

      200,000         173,250   
     

 

 

  
        2,489,806   
     

 

 

  

Kazakhstan: 0.45%

      

Kazakhstan Temir Zholy Finance
BV,

      

6.950%, due 07/10/421

      500,000         417,250   

KazMunayGas National Co. JSC,

      

9.125%, due 07/02/182

      400,000         426,600   
     

 

 

  
        843,850   
     

 

 

  

Malaysia: 0.71%

      

Malayan Banking Bhd,

      

3.250%, due 09/20/222,3

      800,000         803,279   

Petronas Capital Ltd.,

      

3.500%, due 03/18/251

      530,000         523,544   
     

 

 

  
        1,326,823   
     

 

 

  

Mexico: 3.97%

      

Cemex SAB de CV,

      

5.700%, due 01/11/252

      200,000         166,500   

Comision Federal de Electricidad,

      

4.875%, due 01/15/242

      850,000         839,375   

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Corporate bonds — (continued)

      

Mexico — (concluded)

      

Elementia SAB de CV,

      

5.500%, due 01/15/251

    $ 250,000       $ 229,400   

Petroleos Mexicanos,

      

4.875%, due 01/18/24

      785,000         706,500   

5.500%, due 01/21/21

      3,000,000         2,952,000   

5.500%, due 06/27/44

      300,000         225,480   

5.625%, due 01/23/461

      150,000         115,500   

5.625%, due 01/23/462

      1,415,000         1,089,550   

6.375%, due 01/23/45

      360,000         301,518   

6.500%, due 06/02/41

      145,000         122,728   

6.875%, due 08/04/261

      720,000         727,795   
     

 

 

  
        7,476,346   
     

 

 

  

Morocco: 0.39%

      

OCP SA,

      

4.500%, due 10/22/251

      350,000         316,312   

6.875%, due 04/25/441

      250,000         235,000   

6.875%, due 04/25/442

      200,000         188,000   
     

 

 

  
        739,312   
     

 

 

  

Nigeria: 0.20%

      

First Bank of Nigeria Ltd. Via FBN
Finance Co. BV,

      

8.000%, due 07/23/211,3

      500,000         377,500   
     

 

 

  

Panama: 0.52%

      

Autoridad del Canal de Panama,

      

4.950%, due 07/29/351

      950,000         976,125   
     

 

 

  

Peru: 0.62%

      

Corp. Financiera de Desarrollo SA,

      

4.750%, due 07/15/252

      750,000         730,050   

Intercorp Peru Ltd.,

      

5.875%, due 02/12/251

      215,000         205,325   

Lima Metro Line 2 Finance Ltd.,

      

5.875%, due 07/05/341

      250,000         237,500   
     

 

 

  
        1,172,875   
     

 

 

  

Philippines: 1.12%

      

Power Sector Assets & Liabilities
Management Corp.,

      

9.625%, due 05/15/28

      1,400,000         2,100,000   
     

 

 

  

Russia: 2.26%

      

RSHB Capital SA for OJSC
Russian Agricultural Bank,

      

5.298%, due 12/27/172

      1,000,000         995,000   

6.000%, due 06/03/212,3

      550,000         522,500   

8.700%, due 03/17/16

    RUB  10,000,000         131,643   

Sberbank of Russia,

      

4.950%, due 02/07/172

    $ 700,000         706,125   

VEB Finance Ltd.,

      

5.375%, due 02/13/172

      500,000         500,625   

6.025%, due 07/05/221

      200,000         187,000   

6.025%, due 07/05/222

      200,000         188,117   

6.800%, due 11/22/252

      450,000         430,313   

6.902%, due 07/09/201

      200,000         198,500   

6.902%, due 07/09/202

      400,000         397,000   
     

 

 

  
        4,256,823   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Corporate bonds — (concluded)

      

South Africa: 1.22%

      

Eskom Holdings SOC Ltd.,

      

6.750%, due 08/06/232

    $ 500,000       $ 430,000   

7.125%, due 02/11/251

      570,000         492,195   

Transnet SOC Ltd.,

      

9.500%, due 05/13/211

    ZAR  12,660,000         725,286   

10.000%, due 03/30/29

      12,000,000         656,821   
     

 

 

  
        2,304,302   
     

 

 

  

Sri Lanka: 0.84%

      

Bank of Ceylon,

      

6.875%, due 05/03/172

    $ 300,000         304,500   

National Savings Bank,

      

8.875%, due 09/18/181

      900,000         921,375   

8.875%, due 09/18/182

      350,000         358,313   
     

 

 

  
        1,584,188   
     

 

 

  

Thailand: 0.11%

      

Krung Thai Bank PCL,

      

5.200%, due 12/26/242,3

      200,000         206,612   
     

 

 

  

Trinidad and Tobago: 0.09%

      

Petroleum Co. of Trinidad &
Tobago Ltd.,

      

9.750%, due 08/14/192

      165,000         165,825   
     

 

 

  

Turkey: 1.36%

      

Export Credit Bank of Turkey,

      

5.375%, due 11/04/161

      250,000         254,375   

5.875%, due 04/24/191

      200,000         206,500   

Turkiye Halk Bankasi AS,

      

3.875%, due 02/05/202

      300,000         282,750   

4.875%, due 07/19/171

      800,000         813,000   

Turkiye Vakiflar Bankasi TAO,

      

3.750%, due 04/15/182

      600,000         591,000   

5.750%, due 04/24/172

      400,000         411,500   
     

 

 

  
        2,559,125   
     

 

 

  

Venezuela: 0.77%

      

Petroleos de Venezuela SA,

      

5.250%, due 04/12/172

      530,000         206,700   

6.000%, due 05/16/242

      1,700,000         504,900   

6.000%, due 11/15/262

      700,000         205,730   

8.500%, due 11/02/171

      302,682         125,462   

8.500%, due 11/02/172

      293,348         121,593   

9.000%, due 11/17/212

      405,000         133,609   

9.750%, due 05/17/352

      435,000         145,290   
     

 

 

  
        1,443,284   
     

 

 

  

Total corporate bonds

      

(cost $46,917,868)

         42,021,175   
     

 

 

  

Non-US government obligations: 73.07%

      

Angola: 0.21%

      

Republic of Angola,

      

9.500%, due 11/12/251

      220,000         182,600   

Republic of Angola Via Northern
Lights III BV,

      

7.000%, due 08/16/192

      234,375         218,848   
     

 

 

  
        401,448   
     

 

 

  

Argentina: 0.83%

      

Republic of Argentina,

      

0.000%, PO, due 12/15/355

      501,737         54,188   

0.000%, due 12/15/355

      520,000         56,160   

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Argentina — (concluded)

      

Republic of Argentina — (concluded)

      

8.280%, due 12/31/336

    $ 1,051,528       $ 1,182,969   

Series 1,

      

8.750%, due 06/02/176

      237,897         268,824   
     

 

 

  
        1,562,141   
     

 

 

  

Armenia: 0.10%

      

Republic of Armenia,

      

6.000%, due 09/30/202

      200,000         192,000   
     

 

 

  

Azerbaijan: 0.09%

      

Republic of Azerbaijan
International Bond,

      

4.750%, due 03/18/242

      200,000         176,000   
     

 

 

  

Belarus: 0.08%

      

Republic of Belarus,

      

8.950%, due 01/26/182

      150,000         154,125   
     

 

 

  

Bolivia: 0.12%

      

Plurinational State of Bolivia,

      

5.950%, due 08/22/232

      200,000         218,500   
     

 

 

  

Brazil: 7.99%

      

Banco Nacional de
Desenvolvimento Economico e
Social,

      

5.750%, due 09/26/232

      400,000         339,600   

Federative Republic of Brazil,

      

4.250%, due 01/07/25

      750,000         627,375   

5.000%, due 01/27/45

      640,000         444,800   

5.625%, due 01/07/41

      1,150,000         868,250   

6.000%, due 08/15/507

    BRL 460,000         267,447   

8.041%, due 07/01/168

      11,061,000         2,616,145   

15.285%, due 01/01/198

      8,600,000         1,413,706   

Notas do Tesouro Nacional,
Series B,

      

6.000%, due 05/15/457

      1,600,000         938,096   

Series F,

      

10.000%, due 01/01/17

      12,895,000         3,110,666   

10.000%, due 01/01/19

      2,140,000         472,468   

10.000%, due 01/01/21

      9,628,000         1,971,997   

10.000%, due 01/01/25

      5,780,000         1,058,655   

State of Minas Gerais,

      

5.333%, due 02/15/281

    $ 1,200,000         906,000   
     

 

 

  
        15,035,205   
     

 

 

  

Colombia: 3.19%

      

Republic of Colombia,

      

2.625%, due 03/15/23

      360,000         314,460   

4.375%, due 07/12/21

      350,000         350,000   

4.375%, due 03/21/23

    COP 395,000,000         98,386   

4.500%, due 01/28/26

    $ 675,000         635,512   

6.000%, due 04/28/28

    COP  1,844,000,000         429,415   

6.125%, due 01/18/41

    $ 150,000         139,312   

7.375%, due 09/18/37

      450,000         472,500   

8.125%, due 05/21/24

      250,000         296,250   

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Colombia — (concluded)

      

Republic of Colombia — (concluded)

      

9.850%, due 06/28/27

    COP 1,106,000,000       $ 374,204   

Series B,

      

6.000%, due 04/28/28

      11,102,000,000         2,585,337   

7.000%, due 05/04/22

      1,100,000,000         310,745   
     

 

 

  
        6,006,121   
     

 

 

  

Costa Rica: 1.02%

      

Banco Nacional de Costa Rica,

      

4.875%, due 11/01/182

    $ 400,000         394,000   

6.250%, due 11/01/231

      300,000         288,000   

Republic of Costa Rica,

      

4.250%, due 01/26/232

      240,000         211,800   

7.000%, due 04/04/441

      200,000         168,000   

7.000%, due 04/04/442

      675,000         567,000   

7.158%, due 03/12/451

      350,000         294,000   
     

 

 

  
        1,922,800   
     

 

 

  

Dominican Republic: 1.38%

      

Republic of Dominica,

      

5.500%, due 01/27/251

      1,035,000         970,313   

6.850%, due 01/27/452

      110,000         99,275   

6.875%, due 01/29/261

      960,000         973,440   

7.500%, due 05/06/211

      200,000         211,000   

9.040%, due 01/23/182

      327,893         346,337   
     

 

 

  
        2,600,365   
     

 

 

  

Ecuador: 0.11%

      

Republic of Ecuador,

      

7.950%, due 06/20/241

      300,000         207,750   
     

 

 

  

Egypt: 0.20%

      

Egypt Government International

      

Bond,

      

5.750%, due 04/29/202

      150,000         148,688   

5.875%, due 06/11/252

      275,000         228,250   
     

 

 

  
        376,938   
     

 

 

  

El Salvador: 0.43%

      

Republic of El Salvador,

      

6.375%, due 01/18/272

      315,000         249,244   

7.750%, due 01/24/232

      320,000         298,800   

8.250%, due 04/10/322

      300,000         261,000   
     

 

 

  
        809,044   
     

 

 

  

Ethiopia: 0.11%

      

Republic of Ethiopia,

      

6.625%, due 12/11/241

      250,000         214,688   
     

 

 

  

Gabon: 0.32%

      

Gabonese Republic,

      

6.375%, due 12/12/241

      350,000         266,000   

6.375%, due 12/12/242

      240,000         182,400   

6.950%, due 06/16/251

      205,000         155,287   
     

 

 

  
        603,687   
     

 

 

  

Georgia: 0.11%

      

Republic of Georgia,

      

6.875%, due 04/12/212

      200,000         207,000   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Ghana: 0.33%

      

Republic of Ghana,

      

7.875%, due 08/07/232

    $ 200,000       $ 143,750   

8.500%, due 10/04/172

      515,000         468,650   
     

 

 

  
        612,400   
     

 

 

  

Guatemala: 0.12%

      

Republic of Guatemala,

      

5.750%, due 06/06/222

      210,000         216,563   
     

 

 

  

Honduras: 0.12%

      

Republic of Honduras,

      

8.750%, due 12/16/201

      200,000         216,000   
     

 

 

  

Hungary: 2.94%

      

Government of Hungary,

      

5.375%, due 02/21/23

      550,000         601,562   

5.375%, due 03/25/24

      800,000         881,000   

5.500%, due 06/24/25

    HUF  371,850,000         1,538,341   

5.750%, due 11/22/23

    $ 1,120,000         1,255,800   

6.500%, due 06/24/19

    HUF 90,000,000         359,826   

6.750%, due 02/24/17

      70,000,000         257,954   

7.500%, due 11/12/20

      150,000,000         645,283   
     

 

 

  
        5,539,766   
     

 

 

  

Indonesia: 7.75%

      

Indonesia Treasury Bond,

      

8.375%, due 03/15/24

    IDR 6,300,000,000         457,183   

8.375%, due 09/15/26

      3,370,000,000         245,211   

8.375%, due 03/15/34

      7,610,000,000         531,062   

9.000%, due 03/15/29

      49,950,000,000         3,678,432   

9.500%, due 07/15/23

      29,400,000,000         2,257,024   

11.750%, due 08/15/23

      4,600,000,000         394,047   

12.000%, due 09/15/26

      12,215,000,000         1,095,138   

Republic of Indonesia,

      

3.375%, due 04/15/232

    $ 300,000         283,875   

3.750%, due 04/25/222

      430,000         419,250   

4.750%, due 01/08/262

      470,000         478,562   

4.875%, due 05/05/211

      1,080,000         1,134,000   

5.875%, due 03/13/202

      1,000,000         1,097,500   

5.950%, due 01/08/462

      270,000         279,787   

6.625%, due 02/17/372

      920,000         985,550   

6.875%, due 01/17/182

      205,000         223,194   

7.750%, due 01/17/382

      232,000         275,790   

8.500%, due 10/12/352

      400,000         505,500   

11.625%, due 03/04/192

      200,000         251,250   
     

 

 

  
        14,592,355   
     

 

 

  

Ivory Coast: 0.62%

      

Republic of Ivory Coast,

      

5.750%, due 12/31/322,9

      1,000,000         866,250   

6.375%, due 03/03/281

      350,000         307,563   
     

 

 

  
        1,173,813   
     

 

 

  

Jamaica: 0.11%

      

People’s Republic of Jamaica,

      

6.750%, due 04/28/28

      200,000         198,250   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Kazakhstan: 0.51%

      

Republic of Kazakhstan,

      

4.875%, due 10/14/441

    $ 250,000       $ 206,250   

5.125%, due 07/21/252

      765,000         759,263   
     

 

 

  
        965,513   
     

 

 

  

Kenya: 0.66%

      

Republic of Kenya,

      

5.875%, due 06/24/191

      900,000         849,375   

6.875%, due 06/24/242

      450,000         399,937   
     

 

 

  
        1,249,312   
     

 

 

  

Lebanon: 0.15%

      

Lebanese Republic,

      

6.200%, due 02/26/25

      165,000         158,400   

6.650%, due 02/26/302

      125,000         119,531   
     

 

 

  
        277,931   
     

 

 

  

Lithuania: 0.19%

      

Republic of Lithuania,

      

6.625%, due 02/01/221

      300,000         362,250   
     

 

 

  

Malaysia: 4.75%

      

1MDB Global Investments Ltd.,

      

4.400%, due 03/09/232

      400,000         351,500   

Government of Malaysia,

      

3.580%, due 09/28/18

    MYR 2,600,000         631,699   

3.955%, due 09/15/25

      1,950,000         471,881   

4.012%, due 09/15/17

      9,200,000         2,258,980   

4.048%, due 09/30/21

      2,650,000         648,775   

4.181%, due 07/15/24

      5,500,000         1,343,835   

4.262%, due 09/15/16

      3,100,000         753,941   

4.498%, due 04/15/30

      10,050,000         2,478,922   
     

 

 

  
        8,939,533   
     

 

 

  

Mexico: 4.63%

      

Mexican Bonos,

      

10.000%, due 12/05/24

    MXN  11,680,000         826,706   

10.000%, due 11/20/36

      2,000,000         149,634   

Series M,

      

6.500%, due 06/09/22

      7,200,000         416,235   

7.750%, due 11/13/42

      4,800,000         292,743   

Mexican Udibonos,

      

Series S,

      

2.500%, due 12/10/207

      17,311,462         949,158   

4.000%, due 11/15/407

      27,319,652         1,548,049   

United Mexican States,

      

4.000%, due 10/02/23

    $ 1,930,000         1,947,370   

4.125%, due 01/21/26

      500,000         500,500   

4.600%, due 01/23/46

      200,000         177,000   

5.550%, due 01/21/45

      800,000         804,000   

6.050%, due 01/11/40

      1,030,000         1,102,100   
     

 

 

  
        8,713,495   
     

 

 

  

Mongolia: 0.73%

      

Development Bank of Mongolia
LLC,

      

5.750%, due 03/21/172

      1,300,000         1,212,250   

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Mongolia — (concluded)

      

Mongolia Government
International Bond,

      

5.125%, due 12/05/221

    $ 230,000       $ 170,200   
     

 

 

  
        1,382,450   
     

 

 

  

Namibia: 0.10%

      

Republic of Namibia,

      

5.250%, due 10/29/251

      200,000         185,500   
     

 

 

  

Nigeria: 0.10%

      

Republic of Nigeria,

      

6.375%, due 07/12/232

      200,000         178,250   
     

 

 

  

Pakistan: 0.22%

      

Islamic Republic of Pakistan,

      

6.875%, due 06/01/172

      200,000         204,500   

8.250%, due 04/15/242

      200,000         201,611   
     

 

 

  
        406,111   
     

 

 

  

Panama: 0.35%

      

Republic of Panama,

      

3.750%, due 03/16/25

      200,000         197,000   

4.000%, due 09/22/24

      200,000         199,000   

4.300%, due 04/29/53

      300,000         255,750   
     

 

 

  
        651,750   
     

 

 

  

Paraguay: 0.18%

      

Republic of Paraguay,

      

4.625%, due 01/25/231

      350,000         343,875   
     

 

 

  

Peru: 1.26%

      

Fondo MIVIVIENDA SA,

      

3.500%, due 01/31/231

      450,000         417,375   

Republic of Peru,

      

5.625%, due 11/18/50

      500,000         515,000   

5.700%, due 08/12/241

    PEN 3,900,000         1,005,436   

8.200%, due 08/12/26

      1,442,000         431,193   
     

 

 

  
        2,369,004   
     

 

 

  

Philippines: 0.40%

      

Republic of the Philippines,

      

3.900%, due 11/26/22

    PHP 5,000,000         99,160   

3.950%, due 01/20/40

    $ 200,000         213,250   

4.950%, due 01/15/21

    PHP  10,000,000         210,913   

6.250%, due 01/14/36

      10,000,000         226,784   
     

 

 

  
        750,107   
     

 

 

  

Poland: 4.29%

      

Republic of Poland,

      

2.500%, due 07/25/18

    PLN  5,395,000         1,350,648   

3.250%, due 07/25/25

      5,650,000         1,417,395   

4.000%, due 10/25/23

      2,600,000         689,214   

5.000%, due 04/25/16

      5,300,000         1,309,457   

5.000%, due 03/23/22

    $ 200,000         221,000   

5.500%, due 10/25/19

    PLN 6,000,000         1,659,247   

5.750%, due 10/25/21

      4,950,000         1,426,205   
     

 

 

  
        8,073,166   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Romania: 1.64%

      

Government of Romania,

      

4.375%, due 08/22/231

    $ 450,000       $ 472,500   

4.750%, due 02/24/25

    RON 4,050,000         1,057,370   

5.900%, due 07/26/17

      5,200,000         1,324,017   

6.125%, due 01/22/441

    $ 200,000         235,800   
     

 

 

  
        3,089,687   
     

 

 

  

Russia: 2.75%

      

Russian Federation,

      

3.500%, due 01/16/192

      1,000,000         999,750   

5.000%, due 04/29/202

      500,000         518,750   

5.625%, due 04/04/421

      400,000         379,000   

5.625%, due 04/04/422

      200,000         189,500   

7.000%, due 01/25/23

    RUB 90,100,000         1,014,033   

7.000%, due 08/16/23

      13,900,000         154,712   

7.050%, due 01/19/28

      55,000,000         584,675   

7.600%, due 04/14/21

      87,500,000         1,046,042   

8.150%, due 02/03/27

      25,500,000         298,124   
     

 

 

  
        5,184,586   
     

 

 

  

Senegal: 0.11%

      

Republic of Senegal,

      

8.750%, due 05/13/212

    $ 200,000         209,750   
     

 

 

  

South Africa: 4.55%

      

Republic of South Africa,

      

5.500%, due 03/09/20

      100,000         103,600   

5.875%, due 09/16/25

      900,000         939,150   

6.250%, due 03/31/36

    ZAR 17,700,000         776,136   

6.750%, due 03/31/21

      39,000,000         2,242,986   

7.000%, due 02/28/31

      23,600,000         1,184,765   

7.750%, due 02/28/23

      37,600,000         2,208,294   

8.750%, due 02/28/48

      3,800,000         213,112   

10.500%, due 12/21/26

      11,050,000         757,141   

13.500%, due 09/15/16

      2,266,666         147,540   
     

 

 

  
        8,572,724   
     

 

 

  

South Korea: 0.32%

      

Korea Development Bank,

      

2.500%, due 01/13/21

    $ 600,000         607,750   
     

 

 

  

Sri Lanka: 1.12%

      

Republic of Sri Lanka,

      

5.875%, due 07/25/222

      700,000         631,750   

6.250%, due 10/04/201

      550,000         526,625   

6.250%, due 10/04/202

      1,000,000         957,500   
     

 

 

  
        2,115,875   
     

 

 

  

Thailand: 4.47%

      

Government of Thailand,

      

1.200%, due 07/14/212,7

    THB  112,506,318         2,972,261   

2.800%, due 10/10/17

      15,700,000         448,369   

3.775%, due 06/25/32

      10,000,000         309,470   

3.850%, due 12/12/25

      50,500,000         1,596,879   

3.875%, due 06/13/19

      52,100,000         1,567,587   

4.125%, due 11/18/16

      16,470,000         470,487   

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Thailand — (concluded)

      

Government of Thailand — (concluded)

      

4.675%, due 06/29/44

    THB  19,150,000       $ 652,718   

4.875%, due 06/22/29

      11,650,000         405,409   
     

 

 

  
        8,423,180   
     

 

 

  

Turkey: 8.33%

      

Republic of Turkey,

      

4.250%, due 04/14/26

    $ 1,530,000         1,461,150   

5.125%, due 03/25/22

      1,450,000         1,503,650   

5.625%, due 03/30/21

      1,000,000         1,066,000   

5.750%, due 03/22/24

      900,000         960,300   

6.250%, due 09/26/22

      230,000         252,770   

6.750%, due 04/03/18

      250,000         268,625   

6.750%, due 05/30/40

      200,000         224,700   

6.875%, due 03/17/36

      250,000         282,187   

7.100%, due 03/08/23

    TRY 2,300,000         643,169   

7.500%, due 11/07/19

    $ 200,000         225,700   

8.000%, due 02/14/34

      350,000         441,437   

8.000%, due 03/12/25

    TRY 4,910,000         1,414,557   

8.500%, due 09/14/22

      850,000         259,406   

8.800%, due 11/14/18

      4,250,000         1,371,803   

9.000%, due 07/24/24

      3,890,000         1,206,906   

10.500%, due 01/15/20

      12,100,000         4,093,372   
     

 

 

  
        15,675,732   
     

 

 

  

Ukraine: 1.24%

      

Ukraine Government International Bond,

      

7.750%, due 09/01/192

    $ 365,000         345,837   

7.750%, due 09/01/201

      407,000         381,563   

7.750%, due 09/01/211

      215,000         199,413   

7.750%, due 09/01/212

      200,000         185,900   

7.750%, due 09/01/221

      215,000         197,800   

7.750%, due 09/01/231

      215,000         196,402   

7.750%, due 09/01/241

      115,000         104,650   

7.750%, due 09/01/251

      215,000         195,112   

7.750%, due 09/01/261

      215,000         194,467   

7.750%, due 09/01/271

      215,000         193,930   

7.750%, due 09/01/272

      145,000         129,413   
     

 

 

  
        2,324,487   
     

 

 

  

United Kingdom: 0.09%

      

Ukreximbank Via Biz Finance
PLC,

      

9.750%, due 01/22/252

      200,000         170,750   
     

 

 

  

Uruguay: 0.44%

      

Republic of Uruguay,

      

4.375%, due 10/27/27

      780,000         764,400   

6.875%, due 09/28/25

      60,000         69,809   
     

 

 

  
        834,209   
     

 

 

  

Venezuela: 0.91%

      

Republic of Venezuela,

      

7.650%, due 04/21/252

      1,375,000         453,750   

7.750%, due 10/13/192

      365,000         123,187   

8.250%, due 10/13/242

      2,000,000         670,000   

9.250%, due 05/07/282

      562,000         193,890   

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (concluded)

      

Non-US government obligations — (concluded)

      

Venezuela — (concluded)

      

Republic of Venezuela — (concluded)

      

9.375%, due 01/13/34

    $ 800,000       $ 274,000   
     

 

 

  
        1,714,827   
     

 

 

  

Vietnam: 0.16%

      

Socialist Republic of Vietnam,

      

4.800%, due 11/19/241

      200,000         192,000   

6.750%, due 01/29/202

      100,000         109,375   
     

 

 

  
        301,375   
     

 

 

  

Zambia: 0.14%

      

Republic of Zambia,

      

5.375%, due 09/20/221

      400,000         264,000   
     

 

 

  

Total Non-US government
obligations

      

(cost $170,160,380)

         137,574,138   
     

 

 

  

Supranational bond: 0.07%

      

European Investment Bank,

      

7.200%, due 07/09/191

      

(cost $151,832)

    IDR  2,090,000,000         143,061   
     

 

 

  

Total bonds

      

(cost $217,230,080)

         179,738,374   
     

 

 

  
     Shares         

Short-term investment: 2.21%

      

Investment company: 2.21%

      

JPMorgan U.S. Government

      

Money Market Fund, Capital Shares

      

(cost $4,158,507)

      4,158,507         4,158,507   
     

 

 

  

Total investments: 97.67%

      

(cost $221,388,587)

         183,896,881   

Cash and other assets, less liabilities — 2.33%

         4,377,605   
     

 

 

  

Net assets — 100.00%

       $ 188,274,486   
     

 

 

  

Notes to portfolio of investments

Aggregate cost for federal income tax purposes was substantially the same as for book purposes; and net unrealized depreciation consisted of:

 

Gross unrealized appreciation

    $ 3,188,973   

Gross unrealized depreciation

      (40,680,679 ) 
  

 

 

  

Net unrealized depreciation of investments

    $ (37,491,706 ) 
  

 

 

  

For a listing of defined portfolio acronyms, counterparty abbreviations and currency abbreviations that are used throughout the Portfolio of investments as well as the tables that follow, please refer to the end of this report.

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

Forward foreign currency contracts

 

Counterparty

    Contracts to deliver      In exchange for      Maturity
date		      Unrealized
appreciation/
(depreciation)		  

BB

    BRL      1,960,000       USD      511,042         03/16/16       $ 27,359   

BB

    IDR      1,853,933,042       USD      129,001         03/16/16         (4,475 ) 

BB

    INR      3,070,000       USD      45,475         03/16/16         575   

BB

    PEN      2,262,000       USD      660,053         03/16/16         12,262   

BB

    PHP      174,500,000       USD      3,647,575         03/16/16         (5,903 ) 

BB

    PLN      865,000       USD      213,739         03/16/16         1,887   

BB

    RUB      61,220,000       USD      860,678         03/16/16         58,969   

BB

    USD      134,237       CLP      95,469,400         03/16/16         (1,011 ) 

BB

    USD      2,688,274       COP      8,814,190,000         03/16/16         (15,327 ) 

BB

    USD      2,640,182       HUF      762,317,499         03/16/16         10,796   

BB

    USD      117,521       IDR      1,650,000,000         03/16/16         1,272   

BB

    USD      682,390       MXN      12,130,000         03/16/16         (15,609 ) 

BB

    USD      1,682,236       PHP      79,990,300         03/16/16         (7,492 ) 

BB

    USD      193,721       TRY      580,000         03/16/16         185   

CSI

    BRL      4,407,850       USD      1,129,639         03/16/16         41,881   

CSI

    CLP      363,480,000       USD      494,194         03/16/16         (13,038 ) 

CSI

    COP      825,000,000       USD      255,814         03/16/16         5,629   

CSI

    COP      2,420,000,000       USD      724,985         03/16/16         (8,892 ) 

CSI

    IDR      2,195,000,000       USD      153,550         03/16/16         (4,481 ) 

CSI

    INR      114,340,000       USD      1,684,319         03/16/16         12,050   

CSI

    MYR      310,000       USD      69,804         03/16/16         (4,572 ) 

CSI

    RUB      61,220,000       USD      860,436         03/16/16         58,727   

CSI

    TRY      470,676       USD      157,196         03/16/16         (161 ) 

CSI

    USD      510,312       MXN      8,660,000         03/16/16         (34,276 ) 

CSI

    USD      702,880       MYR      3,020,487         03/16/16         21,804   

CSI

    USD      1,824,169       PHP      87,250,000         03/16/16         2,570   

CSI

    USD      2,977,905       PLN      11,995,000         03/16/16         (40,143 ) 

CSI

    USD      1,842,513       RUB      128,737,999         03/16/16         (156,621 ) 

CSI

    ZAR      36,250,000       USD      2,170,135         03/16/16         (93,122 ) 

DB

    BRL      8,300,000       USD      2,012,121         03/16/16         (36,130 ) 

DB

    PLN      505,000       USD      130,142         03/16/16         6,460   

DB

    RON      3,342,000       USD      812,644         03/16/16         17,694   

DB

    TRY      1,575,000       USD      512,029         03/16/16         (14,526 ) 

DB

    USD      350,058       PEN      1,200,000         03/16/16         (6,403 ) 

DB

    USD      56,878       PHP      2,700,000         03/16/16         (349 ) 

DB

    USD      852,217       RUB      57,840,000         03/16/16         (94,772 ) 

DB

    USD      590,962       RUB      45,835,000         03/16/16         9,272   

DB

    USD      92,938       ZAR      1,420,000         03/16/16         (4,281 ) 

GSI

    MXN      7,060,000       USD      408,794         03/16/16         20,710   

GSI

    PLN      9,230,000       USD      2,307,067         03/16/16         46,497   

GSI

    USD      1,739,846       INR      117,410,000         03/16/16         (22,676 ) 

GSI

    USD      4,308,735       MXN      73,716,000         03/16/16         (256,603 ) 

GSI

    USD      112,929       TRY      345,000         03/16/16         2,411   

GSI

    USD      1,830,344       ZAR      28,320,000         03/16/16         (62,194 ) 

GSI

    ZAR      1,365,000       USD      87,793         03/16/16         2,569   

JPMCB

    USD      1,367,499       EUR      1,260,000         02/19/16         (2,011 ) 
                             

Net unrealized depreciation on forward foreign currency contracts

  

       $ (543,489 ) 
                 

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

Futures contracts

 

      Expiration
date		      Cost/
(proceeds)		     Value     Unrealized
appreciation/
(depreciation)		  

US Treasury futures buy contracts:

          

US Ultra Bond, 23 contracts (USD)

      March 2016       $ 3,631,452      $ 3,822,313      $ 190,861   

5 Year US Treasury Notes, 127 contracts (USD)

      March 2016         15,067,061        15,325,328        258,267   

US Treasury futures sell contracts:

          

US Long Bond, 3 contracts (USD)

      March 2016         (461,010 )      (483,094 )      (22,084 ) 

2 Year US Treasury Notes, 16 contracts (USD)

      March 2016         (3,477,478 )      (3,498,000 )      (20,522 ) 

10 Year US Treasury Notes, 140 contracts (USD)

      March 2016         (17,755,685 )      (18,140,937 )      (385,252 ) 
         

 

 

  

Net unrealized appreciation on futures contracts

           $ 21,270   
         

 

 

  

Interest rate swap agreements

 

Counterparty

    Notional
amount		      Termination
date		    Payments
made by
the Fund10		      Payments received by
the  Fund10		     Upfront
payments		      Value      Unrealized
appreciation		  

MLI

    MXN      7,200,000       11/16/28      28 day MXIBTIIE         8.830 %    $     —       $ 90,397       $ 90,397   

MLI

    MXN      7,000,000       11/21/28      28 day MXIBTIIE         8.610        —         81,444         81,444   
                

 

 

     

 

 

     

 

 

  
                 $ —       $     171,841       $     171,841   
                

 

 

     

 

 

     

 

 

  

Credit default swaps on sovereign issues-buy protection11

 

Counterparty

   

Referenced obligation12

    Notional amount      Termination
date		      Payments
made
by  the
Fund10		     Upfront
payments
made		     Value     Unrealized
appreciation/
(depreciation)		  

DB

    Russian Federation bond,
2.250%, due 03/31/30		    USD  1,000,000         03/20/16         1.000 %    $ (1,123 )    $ (349 )    $ (1,472 ) 

DB

    Republic of Colombia bond,
10.375%, due 01/28/33		    USD 680,000         12/20/24         1.000        (33,468 )      110,106        76,638   
             

 

 

    

 

 

    

 

 

  
              $ (34,591 )    $ 109,757      $ 75,166   
             

 

 

    

 

 

    

 

 

  

Credit default swaps on sovereign issues-sell protection13

 

Counterparty

   

Referenced obligation12

    Notional amount      Termination
date		      Payments
received
by  the
Fund10		     Upfront
Payments
received		      Value     Unrealized
depreciation		     Credit
spread14		  

BB

    Federative Republic of
Brazil bond,
12.250%, due 03/06/30		    USD  180,000         06/20/22         1.000 %    $ 9,415       $ (36,690 )    $ (27,275 )      4.911 % 

BB

    Russian Federation bond,
2.250%, due 03/31/30		    USD  2,900,000         12/20/22         1.000        188,414         (419,879 )      (231,465 )      3.500   

DB

    Federative Republic of
Brazil bond,
12.250%, due 03/06/30		    USD 800,000        06/20/22         1.000        41,351         (163,066 )      (121,715 )      4.911   

DB

    United Mexican States bond,
7.500%, due 04/08/33		    USD 680,000         12/20/24         1.000        20,320         (71,758 )      (51,438 )      2.415   
             

 

 

     

 

 

    

 

 

    
              $ 259,500       $ (691,393 )    $ (431,893 )   
             

 

 

     

 

 

    

 

 

    

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

The following is a summary of the fair valuations according to the inputs used as of January 31, 2016 in valuing the Fund’s investments:

 

Description    Unadjusted quoted
prices in active
markets for
identical investments
(Level 1)		     Other significant
observable inputs
(Level 2)		    

Unobservable
inputs

(Level 3)

      Total  

Assets

          

Corporate bonds

    $ —      $ 42,021,175      $ —       $ 42,021,175   

Non-US government obligations

      —        137,574,138        —         137,574,138   

Supranational bond

      —        143,061        —         143,061   

Short-term investment

      —        4,158,507        —         4,158,507   

Forward foreign currency contracts

      —        361,579        —         361,579   

Futures contracts

      449,128        —        —         449,128   

Swap agreements

      —        281,947        —         281,947   

Total

    $ 449,128      $ 184,540,407      $     —       $     184,989,535   

Liabilities

          

Forward foreign currency contracts

    $ —      $ (905,068 )    $ —       $ (905,068 ) 

Futures contracts

      (427,858 )      —        —         (427,858 ) 

Swap agreements

      —        (691,742 )      —         (691,742 ) 

Total

    $ (427,858 )    $ (1,596,810 )    $ —       $ (2,024,668 ) 

During the period ended January 31, 2016, there were no transfers between Level 1 and Level 2.

Global High Income Fund Inc.

Portfolio of investments — January 31, 2016 (unaudited)

 

Portfolio footnotes

  1 

Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At January 31, 2016, the value of these securities amounted to $28,261,209 or 15.01% of net assets.

  2 

Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At January 31, 2016, the value of these securities amounted to $39,336,370 or 20.89% of net assets.

  3 

Variable or floating rate security — The interest rate shown is the current rate as of January 31, 2016 and changes periodically.

  4 

Perpetual investment. Date shown reflects the next call date.

  5 

Security pays, when required, a floating rate that is determined annually based on the Argentina GDP.

  6 

Security is in default.

  7 

Debt security whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The interest rate paid by the securities is fixed, while the principal value rises or falls based on changes in an index. Thus, if inflation occurs, the principal and interest payments on the securities are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the securities’ principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the securities generally pay lower interest rates than typical government securities from the issuer’s country. Only if inflation occurs will securities offer a higher real yield than a conventional security of the same maturity.

  8 

Rate shown reflects annualized yield at January 31, 2016 on zero coupon bond.

  9 

Step bond — Coupon rate increases in increments to maturity. Rate disclosed is as of January 31, 2016. Maturity date disclosed is the ultimate maturity date.

  10 

Payments made or received are based on the notional amount.

  11 

If the Fund is a buyer of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and deliver the referenced obligation or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation.

  12 

Payments from/to the counterparty will be received/made upon the occurrence of bankruptcy and/or restructuring event with respect to the referenced obligation.

  13 

If the Fund is a seller of protection and a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap agreement less the recovery value of the referenced obligation.

  14 

Credit spreads, represented in absolute terms, utilized in determining the market value as of period end serve as an indicator of the current status of the payment/performance risk and represent the likelihood or risk of default or other credit event occurring for the credit derivative. The credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the agreement. A credit spread identified as “Defaulted” indicates a credit event has occurred for the referenced entity.

 

Security description

    Value
10/31/15		      Purchases
during the
three months
ended
01/31/16		      Sales during
the
three months
ended
01/31/16		      Value
01/31/16		      Net income
earned from
affiliate for the
three months
ended
01/31/16		  

UBS Cash Management Prime Relationship Fund

    $ 4,289,927       $ 6,511,310       $ 10,801,237       $ —       $     250   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio acronyms

GDP    Gross Domestic Product
JSC    Joint Stock Company
MXIBTIIE    Mexico Interbank TIIE 28 Day Rate
OJSC    Open Joint Stock Company
PO    Principal only security — This security entitles the holder to receive principal payments from an underlying pool of assets or on the security itself. In the case of assetbacked securities, high prepayments return principal faster than expected and cause the yield to increase. Low prepayments return principal slower than expected and cause the yield to decrease.

Counterparty abbreviations

BB    Barclays Bank PLC
CSI    Credit Suisse International
DB    Deutsche Bank AG
GSI    Goldman Sachs International
JPMCB    JPMorgan Chase Bank
MLI    Merrill Lynch International

Currency abbreviations

BRL    Brazilian Real
CLP    Chilean Peso
COP    Colombian Peso
EUR    Euro
HUF    Hungarian Forint
IDR    Indonesian Rupiah
INR    Indian Rupee
MXN    Mexican Peso
MYR    Malaysian Ringgit
PEN    Peru Nuevo Sol
PHP    Philippine Peso
PLN    Polish Zloty
RON    Romanian Lei
RUB    Russian Ruble
THB    Thai Baht
TRY    Turkish Lira
USD    United States Dollar
ZAR    South African Rand

The Fund calculates its net asset value based on the current market value, where available, for its portfolio securities. The Fund normally obtains market values for its investments from independent pricing sources and broker-dealers. Independent pricing sources may use reported last sale prices, official market closing prices, current market quotations or valuations from computerized “evaluation” systems that derive values based on comparable investments. An evaluation system incorporates parameters such as security quality, maturity and coupon, and/or research and evaluations by its staff, including review of broker dealer market price quotations, if available, in determining the valuation of the portfolio investments. Investments also maybe valued based on appraisals derived from information concerning the investments or similar investments received from recognized dealers in those holdings. Investments traded in the over-the-counter (“OTC”) market and listed on The NASDAQ Stock Market, Inc. (“NASDAQ”) normally are valued at the NASDAQ Official Closing Price. Other OTC securities are valued at the last bid price on the valuation date available prior to valuation. Investments which are listed on US and foreign stock exchanges normally are valued at the market closing price, the last sale price on the day the securities are valued or, lacking any sales on such day, at the last available bid price. In cases where investments are traded on more than one exchange, the investments are valued on the exchange designated as the primary market by UBS Asset Management (Americas) Inc. (“UBS AM”), the investment advisor of the Fund. If a market value is not readily available from an independent pricing source for a particular investment, that investment is valued at fair value as determined in good faith by or under the direction of the Fund’s Board of Directors (the “Board”). Various factors may be reviewed in order to make a good faith determination of an investment’s fair value. These factors include, but are not limited to, fundamental analytical data relating to the investment; the nature and duration of restrictions on disposition of the investments; and the evaluation of forces which influence the market in which the investments are purchased and sold. Certain investments in which the Fund invests are traded in markets that close before 4:00 p.m., Eastern time. Normally, developments that occur between the close of the foreign markets and 4:00 p.m. Eastern time will not be reflected in the Fund’s net asset value. However, if the Fund determines that such developments are so significant that they will materially affect the value of the Fund’s investments, the Fund may adjust the previous closing prices to reflect what is believed to be the fair value of these investments as of 4:00 p.m. Eastern time. Investments in open-end investment companies are valued at the daily closing net asset value of the respective investment company. Pursuant to the Fund’s use of the practical expedient within ASC Topic 820, investments in non registered investment companies are also valued at the daily net asset value.

The Fund’s Board of Directors (the “Board”) has delegated to the UBS Asset Management Global Valuation Committee (“GVC”) the responsibility for making fair value determinations with respect to the Fund’s portfolio holdings. The GVC is comprised of representatives of management.

The GVC provides reports to the Board at each quarterly meeting regarding any investments that have been fair valued, valued pursuant to standing instructions approved by the GVC, or where non-vendor pricing sources had been used to make fair value determinations when sufficient information exists during the prior quarter. Fair valuation determinations are subject to review at least monthly by the GVC during scheduled meetings. Pricing decisions, processes, and controls over fair value determinations are subject to internal and external reviews, including annual internal compliance reviews and periodic internal audit reviews of security valuations.

The types of investments for which such fair value pricing may be necessary include, but are not limited to: foreign investments under some circumstances, as discussed below, securities of an issuer that has entered into a restructuring; investments whose trading has been halted or suspended; fixed income securities that are in default and for which there is no current market value quotation; and investments that are restricted as to transfer or resale. The need to fair value the Fund’s portfolio investments may also result from low trading volume in foreign markets or thinly traded domestic investments, and when a security that is subject to a trading limit or collar on the exchange or market on which it is primarily traded reaches the “limit up” or “limit” down price and no trading has taken place at that price. Various factors may be reviewed in order to make a good faith determination of an investment’s fair value. These factors include, but are not limited to, fundamental analytical data relating to the investment; the nature and duration of restrictions on disposition of investments; and the evaluation of forces which influence the market in which the investments are purchased and sold. Valuing investments at fair value involves greater reliance on judgment than valuing investments that have readily available market quotations. Fair value determinations can also involve reliance on quantitative models employed by a fair value pricing service.

US Generally Accepted Accounting Principles (“GAAP”) requires disclosure regarding the various inputs that are used in determining the value of the Fund’s investments. These inputs are summarized into the three broad levels listed below:

Level 1 — Unadjusted quoted prices in active markets for identical investments.

Level 2 — Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risk.

Level 3 — Unobservable inputs inclusive of the Fund’s own assumptions in determining the fair value of investments.

A fair value hierarchy has been included near the end of the Fund’s Portfolio of investments.

In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-07, Fair Value Measurement (Topic 820): “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)” (“ASU 2015-07”). The modification removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the NAV per share practical expedient. ASU 2015-07 is effective for annual reporting periods beginning after December 15, 2015 and interim periods within those fiscal periods. Management is currently evaluating the implications of these changes and their impact on the financial statements and disclosures.

For more information regarding the Fund’s other significant accounting policies, please refer to the Fund’s annual report to shareholders dated October 31, 2015.

Item 2. Controls and Procedures.

 

  (a) The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (“Investment Company Act”)) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.

 

  (b) The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

 

  (a) Certifications of principal executive officer and principal financial officer of registrant pursuant to Rule 30a-2(a) under the Investment Company Act is attached hereto as Exhibit EX-99.CERT.

SIGNATURES

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

 

Global High Income Fund Inc.
By:  

/s/ Mark E. Carver

  Mark E. Carver
  President
Date:   March 31, 2016

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

 

By:  

/s/ Mark E. Carver

  Mark E. Carver
  President
Date:   March 31, 2016
By:  

/s/ Thomas Disbrow

  Thomas Disbrow
  Vice President and Treasurer

Date: March 31, 2016