Global High Income Fund

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 Global 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, 2015

Item 1. Schedule of Investments

Global High Income Fund Inc.

 

 

Industry diversification (unaudited)

As a percentage of net assets

As of January 31, 2015

 

 

  

Bonds

   

Corporate bonds

   

Airlines

      0.25 % 

Automobiles

      0.09   

Banks

      8.39   

Capital markets

      1.34   

Chemicals

      0.13   

Construction & engineering

      0.15   

Construction materials

      0.47   

Diversified financial services

      3.78   

Electric utilities

      2.31   

Electrical equipment

      0.97   

Energy equipment & services

      0.06   

Food & staples retailing

      0.10   

Food products

      0.31   

Independent power producers & energy traders

      0.11   

Metals & mining

      0.36   

Multiline retail

      0.10   

Oil, gas & consumable fuels

      5.09   

Real estate management & development

      0.12   

Road & rail

      1.44   

Specialty retail

      0.12   
  

 

 

  

Total corporate bonds

      25.69   

Non-US government obligations

      68.78   

Structured notes

      3.60   
  

 

 

  

Total bonds

      98.07   

Short-term investment

      0.38   
  

 

 

  

Total investments

      98.45   

Cash and other assets, less liabilities

      1.55   
  

 

 

  

Net assets

      100.00 % 
  

 

 

  
 

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — 98.07%

      

Corporate bonds — 25.69%

      

Azerbaijan — 0.90%

      

International Bank of Azerbaijan OJSC Via Rubrika Finance Co., Ltd.,

      

7.200%, due 10/31/16

    $ 2,000,000       $ 1,995,000   
     

 

 

  

Brazil — 2.80%

      

Banco do Brasil SA,

      

5.875%, due 01/26/221

      1,900,000         1,869,695   

Caixa Economica Federal,

      

2.375%, due 11/06/171

      200,000         191,480   

Centrais Eletricas Brasileiras SA,

      

5.750%, due 10/27/211

      500,000         447,500   

5.750%, due 10/27/212

      2,200,000         1,969,000   

Marfrig Holding Europe BV,

      

8.375%, due 05/09/182

      250,000         235,500   

Minerva Luxembourg SA,

      

7.750%, due 01/31/232

      250,000         238,125   

Petrobras Global Finance BV,

      

2.393%, due 01/15/193

      470,000         396,116   

3.123%, due 03/17/203

      450,000         377,438   

7.250%, due 03/17/44

      545,000         466,683   
     

 

 

  
        6,191,537   
     

 

 

  

Chile — 0.11%

      

Empresa Electrica Angamos SA,

      

4.875%, due 05/25/291

      250,000         250,725   
     

 

 

  

China — 1.05%

      

China Shanshui Cement Group Ltd.,

      

10.500%, due 04/27/172

      360,000         370,800   

CNOOC Curtis Funding No 1 Pty Ltd.,

      

4.500%, due 10/03/231

      235,000         254,576   

Golden Eagle Retail Group Ltd.,

      

4.625%, due 05/21/232

      250,000         211,465   

Prosperous Ray Ltd.,

      

4.625%, due 11/12/232

      200,000         215,790   

Sinochem Overseas Capital Co., Ltd.,

      

4.500%, due 11/12/201

      200,000         212,115   

4.500%, due 11/12/202

      265,000         281,053   

Sinopec Group Overseas Development 2014 Ltd.,

      

4.375%, due 04/10/241

      710,000         768,932   
     

 

 

  
        2,314,731   
     

 

 

  

Croatia — 0.10%

      

Agrokor DD,

      

8.875%, due 02/01/201

      200,000         216,516   
     

 

 

  

Ecuador — 0.23%

      

EP PetroEcuador via Noble Sovereign Funding I Ltd.,

      

5.885%, due 09/24/192,3

      600,000         516,000   
     

 

 

  

Hungary — 0.44%

      

Magyar Export-Import Bank Zrt,

      

4.000%, due 01/30/201

      650,000         656,796   

5.500%, due 02/12/182

      300,000         318,099   
     

 

 

  
        974,895   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Corporate bonds — (continued)

      

India — 1.29%

      

ABJA Investment Co. Pte Ltd.,

      

5.950%, due 07/31/242

    $ 225,000       $ 229,219   

Canara Bank/London,

      

6.365%, due 11/28/213

      650,000         664,969   

ICICI Bank Ltd.,

      

6.375%, due 04/30/222,3

      1,700,000         1,738,250   

Vedanta Resources PLC,

      

9.500%, due 07/18/182

      210,000         204,750   
     

 

 

  
        2,837,188   
     

 

 

  

Indonesia — 1.40%

      

Indo Energy Finance II BV,

      

6.375%, due 01/24/232

      250,000         163,750   

Majapahit Holding BV,

      

7.250%, due 06/28/171

      100,000         110,000   

MPM Global Pte Ltd.,

      

6.750%, due 09/19/192

      200,000         200,489   

Pertamina Persero PT,

      

4.300%, due 05/20/231

      200,000         198,500   

5.625%, due 05/20/431

      200,000         196,676   

6.000%, due 05/03/421

      1,700,000         1,741,106   

6.500%, due 05/27/412

      200,000         215,750   

Theta Capital Pte Ltd.,

      

6.125%, due 11/14/202

      250,000         253,750   
     

 

 

  
        3,080,021   
     

 

 

  

Kazakhstan — 0.90%

      

Development Bank of Kazakhstan JSC,

      

5.500%, due 12/20/151

      264,000         267,300   

Kazakhstan Temir Zholy Finance BV,

      

6.950%, due 07/10/421

      750,000         667,500   

6.950%, due 07/10/422

      350,000         311,500   

KazMunayGas National Co. JSC,

      

4.400%, due 04/30/232

      200,000         174,250   

5.750%, due 04/30/431

      700,000         563,784   
     

 

 

  
        1,984,334   
     

 

 

  

Malaysia — 1.02%

      

Malayan Banking Bhd,

      

3.250%, due 09/20/222,3

      2,250,000         2,256,778   
     

 

 

  

Mexico — 2.04%

      

Cemex SAB de CV,

      

5.700%, due 01/11/251

      300,000         274,500   

Comision Federal de Electricidad,

      

4.875%, due 01/15/242

      1,450,000         1,529,909   

5.750%, due 02/14/421

      500,000         548,750   

Elementia SAB de CV,

      

5.500%, due 01/15/251

      250,000         239,063   

Empresas ICA SAB de CV,

      

8.875%, due 05/29/242

      490,000         336,875   

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Corporate bonds — (continued)

      

Mexico — (concluded)

      

Petroleos Mexicanos,

      

5.625%, due 01/23/461

    $ 150,000       $ 152,925   

6.625%, due 06/15/35

      650,000         745,745   

7.190%, due 09/12/24

      MXN 10,000,000         689,523   
     

 

 

  
        4,517,290   
     

 

 

  

Morocco — 0.13%

      

OCP SA,

      

6.875%, due 04/25/441

    $ 250,000         280,625   
     

 

 

  

Nigeria — 0.56%

      

FBN Finance Co. BV,

      

8.000%, due 07/23/211,3

      1,600,000         1,228,000   
     

 

 

  

Panama — 0.25%

      

Avianca Holdings SA,

      

8.375%, due 05/10/202

      550,000         558,250   
     

 

 

  

Peru — 0.37%

      

Fondo MIVIVIENDA SA,

      

3.500%, due 01/31/231

      450,000         439,101   

InRetail Consumer,

      

5.250%, due 10/10/211

      230,000         231,150   

Union Andina de Cementos SAA,

      

5.875%, due 10/30/211

      150,000         148,500   
     

 

 

  
        818,751   
     

 

 

  

Philippines — 0.97%

      

Power Sector Assets & Liabilities Management Corp.,

      

9.625%, due 05/15/28

      1,400,000         2,149,000   
     

 

 

  

Russia — 3.56%

      

Evraz Group SA,

      

6.500%, due 04/22/202

      250,000         181,250   

Metalloinvest Finance Ltd.,

      

5.625%, due 04/17/202

      250,000         190,000   

RSHB Capital SA for OJSC Russian Agricultural Bank,

      

5.298%, due 12/27/172

      1,000,000         834,690   

6.000%, due 06/03/212,3

      550,000         363,000   

8.700%, due 03/17/16

      RUB 10,000,000         129,914   

Sberbank of Russia,

      

5.717%, due 06/16/212

    $ 830,000         679,986   

6.125%, due 02/07/222

      700,000         581,000   

TMK OAO Via TMK Capital SA,

      

6.750%, due 04/03/202

      250,000         139,951   

VEB Finance Ltd.,

      

5.375%, due 02/13/172

      2,550,000         2,263,125   

5.942%, due 11/21/231

      500,000         333,040   

6.025%, due 07/05/221

      200,000         132,000   

6.025%, due 07/05/222

      1,400,000         924,000   

6.800%, due 11/22/251

      1,000,000         670,150   

6.902%, due 07/09/201

      200,000         147,200   

6.902%, due 07/09/202

      400,000         294,400   
     

 

 

  
        7,863,706   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Corporate bonds — (continued)

      

Singapore — 0.25%

      

Oversea-Chinese Banking Corp., Ltd.,

      

3.150%, due 03/11/232,3

    $ 550,000       $ 559,630   
     

 

 

  

South Africa — 1.23%

      

Eskom Holdings SOC Ltd.,

      

6.750%, due 08/06/232

      500,000         507,500   

Transnet SOC Ltd.,

      

9.500%, due 05/13/211

      ZAR 12,660,000         1,133,203   

10.000%, due 03/30/29

      12,000,000         1,067,068   
     

 

 

  
        2,707,771   
     

 

 

  

Sri Lanka — 1.08%

      

Bank of Ceylon,

      

5.325%, due 04/16/182

    $ 300,000         299,250   

National Savings Bank,

      

8.875%, due 09/18/181

      900,000         991,125   

8.875%, due 09/18/182

      1,000,000         1,101,500   
     

 

 

  
        2,391,875   
     

 

 

  

Turkey — 2.77%

      

Export Credit Bank of Turkey,

      

5.375%, due 11/04/161

      700,000         729,869   

5.875%, due 04/24/191

      400,000         426,356   

Turkiye Halk Bankasi AS,

      

3.875%, due 02/05/202

      1,700,000         1,628,770   

4.875%, due 07/19/171

      800,000         819,000   

Turkiye Vakiflar Bankasi Tao,

      

3.750%, due 04/15/182

      1,300,000         1,277,250   

5.000%, due 10/31/182

      800,000         817,600   

5.750%, due 04/24/172

      400,000         416,500   
     

 

 

  
        6,115,345   
     

 

 

  

United Arab Emirates — 0.60%

      

IPIC GMTN Ltd.,

      

5.500%, due 03/01/222

      1,126,000         1,323,050   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Corporate bonds — (concluded)

      

Venezuela — 1.64%

      

Petroleos de Venezuela SA,

      

5.250%, due 04/12/172

    $ 530,000       $ 198,975   

6.000%, due 05/16/242

      1,700,000         529,550   

6.000%, due 11/15/262

      2,360,000         722,986   

8.500%, due 11/02/171

      454,000         257,918   

8.500%, due 11/02/172

      610,000         346,541   

9.000%, due 11/17/212

      2,860,000         998,855   

9.750%, due 05/17/352

      1,650,000         577,500   
     

 

 

  
        3,632,325   
     

 

 

  

Total corporate bonds
(cost — $64,605,188)

         56,763,343   
     

 

 

  

Non-US government obligations: 68.78%

      

Albania — 0.95%

      

Republic of Albania,

      

7.500%, due 11/04/15

      EUR 1,800,000         2,100,247   
     

 

 

  

Angola — 0.11%

      

Republic of Angola Via Northern Lights III BV,

      

7.000%, due 08/16/192

    $ 250,000         241,875   
     

 

 

  

Argentina — 0.48%

      

Republic of Argentina,

      

0.000%, due 12/15/354

      520,000         38,740   

0.000%, due 12/15/354

      501,737         35,122   

7.000%, due 10/03/15

      165,000         162,355   

Series 1,

      

8.750%, due 06/02/175

      872,897         813,976   
     

 

 

  
        1,050,193   
     

 

 

  

Belarus — 1.95%

      

Republic of Belarus,

      

8.750%, due 08/03/152

      4,550,000         4,186,000   

8.950%, due 01/26/182

      150,000         120,000   
     

 

 

  
        4,306,000   
     

 

 

  

Brazil — 9.09%

      

Federative Republic of Brazil,

      

5.000%, due 01/27/45

      800,000         772,000   

6.000%, due 08/15/506

      BRL 1,000,000         943,351   

11.748%, due 07/01/167

      12,661,000         3,985,896   

Notas do Tesouro Nacional, Series B,

      

6.000%, due 05/15/456

      7,089,000         6,701,049   

Series F,

      

10.000%, due 01/01/17

      1,280,000         458,292   

10.000%, due 01/01/19

      7,522,000         2,630,744   

10.000%, due 01/01/21

      6,428,000         2,203,358   

10.000%, due 01/01/25

      2,469,000         822,888   

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

  

Brazil — (concluded)

      

State of Minas Gerais,

      

5.333%, due 02/15/281

    $ 1,600,000       $ 1,579,280   
     

 

 

  
        20,096,858   
     

 

 

  

China — 0.24%

      

China Government Bond,

      

2.480%, due 12/01/20

    CNY  3,500,000         530,946   
     

 

 

  

Colombia — 3.86%

      

Republic of Colombia,

      

2.625%, due 03/15/23

    $ 580,000         544,330   

4.375%, due 07/12/21

      350,000         371,000   

4.375%, due 03/21/23

    COP  395,000,000         148,701   

6.000%, due 04/28/28

      1,844,000,000         685,764   

Series B,

      

6.000%, due 04/28/28

      8,202,000,000         3,050,237   

6.125%, due 01/18/41

    $ 150,000         183,750   

7.375%, due 09/18/37

      575,000         779,125   

8.125%, due 05/21/24

      250,000         332,500   

9.850%, due 06/28/27

    COP  2,796,000,000         1,523,396   

12.000%, due 10/22/15

      2,130,000,000         916,563   
     

 

 

  
        8,535,366   
     

 

 

  

Costa Rica — 0.58%

      

Banco Nacional de Costa Rica,

      

4.875%, due 11/01/182

    $ 600,000         597,000   

6.250%, due 11/01/231

      500,000         496,250   

Republic of Costa Rica,

      

7.000%, due 04/04/441

      200,000         194,500   
     

 

 

  
        1,287,750   
     

 

 

  

Cote d’Ivoire — 0.34%

      

Republic of Cote d’Ivoire,

      

5.750%, due 12/31/322,8

      800,000         748,000   
     

 

 

  

Dominican Republic — 0.60%

      

Republic of Dominica,

      

5.500%, due 01/27/251

      485,000         489,850   

6.850%, due 01/27/451

      590,000         606,225   

7.500%, due 05/06/211

      200,000         224,500   
     

 

 

  
        1,320,575   
     

 

 

  

Ecuador — 0.12%

      

Republic of Ecuador,

      

7.950%, due 06/20/241

      300,000         264,750   
     

 

 

  

El Salvador — 0.49%

      

Republic of El Salvador,

      

7.750%, due 01/24/232

      320,000         363,600   

8.250%, due 04/10/322

      615,000         712,631   
     

 

 

  
        1,076,231   
     

 

 

  

Ethiopia — 0.20%

      

Republic of Ethiopia,

      

6.625%, due 12/11/241

      450,000         437,625   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

  

Gabon — 0.43%

      

Gabonese Republic,

      

6.375%, due 12/12/241

    $ 550,000       $ 517,000   

6.375%, due 12/12/242

      470,000         441,800   
     

 

 

  
        958,800   
     

 

 

  

Ghana — 0.78%

      

Republic of Ghana,

      

7.875%, due 08/07/232

      700,000         612,808   

8.125%, due 01/18/261

      700,000         612,577   

8.500%, due 10/04/172

      500,000         496,250   
     

 

 

  
        1,721,635   
     

 

 

  

Honduras — 0.10%

      

Republic of Honduras,

      

8.750%, due 12/16/201

      200,000         222,018   
     

 

 

  

Hungary — 2.06%

      

Government of Hungary,

      

5.375%, due 02/21/23

      550,000         618,062   

5.750%, due 11/22/23

      800,000         922,000   

6.500%, due 06/24/19

    HUF  90,000,000         384,687   

6.750%, due 02/24/17

      70,000,000         281,462   

7.500%, due 11/12/20

      150,000,000         688,587   

7.625%, due 03/29/41

    $ 310,000         458,766   

Magyar Fejlesztesi Bank Rt,

      

5.875%, due 05/31/16

    EUR  1,000,000         1,195,509   
     

 

 

  
        4,549,073   
     

 

 

  

Indonesia — 7.55%

      

Indonesia Treasury Bond,

      

8.375%, due 03/15/34

    IDR  1,210,000,000         105,168   

9.000%, due 03/15/29

      66,350,000,000         6,028,723   

9.500%, due 07/15/23

      29,400,000,000         2,669,035   

11.750%, due 08/15/23

      4,600,000,000         468,988   

12.000%, due 09/15/26

      12,215,000,000         1,323,472   

Republic of Indonesia,

      

3.375%, due 04/15/232

    $ 300,000         292,875   

3.750%, due 04/25/222

      430,000         432,687   

4.875%, due 05/05/211

      1,080,000         1,166,400   

5.875%, due 03/13/202

      1,000,000         1,123,750   

6.625%, due 02/17/372

      920,000         1,131,600   

7.750%, due 01/17/382

      785,000         1,082,319   

8.500%, due 10/12/352

      400,000         584,000   

11.625%, due 03/04/192

      200,000         267,000   
     

 

 

  
        16,676,017   
     

 

 

  

Iraq — 0.27%

      

Republic of Iraq,

      

5.800%, due 01/15/282

      750,000         600,000   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Kazakhstan — 0.28%

      

Republic of Kazakhstan,

      

3.875%, due 10/14/241

    $ 450,000       $ 406,687   

4.875%, due 10/14/441

      250,000         218,438   
     

 

 

  
        625,125   
     

 

 

  

Kenya — 1.06%

      

Republic of Kenya,

      

5.875%, due 06/24/191

      900,000         902,250   

6.875%, due 06/24/241

      735,000         764,400   

6.875%, due 06/24/242

      650,000         676,000   
     

 

 

  
        2,342,650   
     

 

 

  

Lithuania — 0.17%

      

Republic of Lithuania,

      

6.625%, due 02/01/221

      300,000         372,743   
     

 

 

  

Malaysia — 4.22%

      

Government of Malaysia,

      

3.580%, due 09/28/18

      MYR 2,600,000         713,585   

3.741%, due 02/27/15

      450,000         124,060   

3.835%, due 08/12/15

      450,000         124,330   

4.012%, due 09/15/17

      9,200,000         2,563,600   

4.181%, due 07/15/24

      5,500,000         1,560,746   

4.262%, due 09/15/16

      5,100,000         1,422,700   

4.498%, due 04/15/30

      9,810,000         2,814,967   
     

 

 

  
        9,323,988   
     

 

 

  

Mexico — 4.46%

      

Mexican Bonos,

      

Series M,

      

7.750%, due 11/13/42

      MXN 4,800,000         401,085   

10.000%, due 12/05/24

      16,580,000         1,512,053   

10.000%, due 11/20/36

      2,000,000         201,493   

Mexican Udibonos,

      

Series S,

      

2.500%, due 12/10/206

      16,907,002         1,155,344   

4.000%, due 11/15/406

      26,681,362         2,079,898   

United Mexican States,

      

4.600%, due 01/23/46

    $ 1,000,000         1,037,500   

4.750%, due 03/08/44

      1,100,000         1,190,750   

5.550%, due 01/21/45

      800,000         974,000   

6.050%, due 01/11/40

      1,030,000         1,300,375   
     

 

 

  
        9,852,498   
     

 

 

  

Mongolia — 1.38%

      

Development Bank of Mongolia LLC,

      

5.750%, due 03/21/172

      1,500,000         1,398,750   

Mongolia Government International Bond,

      

4.125%, due 01/05/181

      300,000         271,500   

5.125%, due 12/05/221

      1,650,000         1,369,500   
     

 

 

  
        3,039,750   
     

 

 

  

Montenegro — 0.53%

      

Republic of Montenegro,

      

7.875%, due 09/14/15

      EUR 1,000,000         1,171,019   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

  

Nigeria — 0.18%

      

Republic of Nigeria,

      

5.125%, due 07/12/182

    $ 200,000       $ 193,166   

6.375%, due 07/12/232

      200,000         182,000   

15.100%, due 04/27/17

    NGN  2,500,000         13,271   
     

 

 

  
        388,437   
     

 

 

  

Pakistan — 0.18%

      

Islamic Republic of Pakistan,

      

7.125%, due 03/31/162

    $ 100,000         102,500   

7.875%, due 03/31/362

      100,000         92,000   

8.250%, due 04/15/242

      200,000         206,500   
     

 

 

  
        401,000   
     

 

 

  

Paraguay — 0.10%

      

Republic of Paraguay,

      

6.100%, due 08/11/441

      200,000         220,000   
     

 

 

  

Peru — 2.29%

      

Republic of Peru,

      

5.625%, due 11/18/50

      600,000         739,500   

5.700%, due 08/12/241

    PEN  4,800,000         1,599,295   

6.900%, due 08/12/372

      1,250,000         446,853   

6.950%, due 08/12/311

      1,750,000         642,715   

6.950%, due 08/12/312

      2,860,000         1,050,380   

8.200%, due 08/12/26

      1,442,000         578,416   
     

 

 

  
        5,057,159   
     

 

 

  

Philippines — 2.00%

      

Republic of the Philippines,

      

3.900%, due 11/26/22

    PHP  47,000,000         1,084,583   

3.950%, due 01/20/40

    $ 200,000         219,750   

4.950%, due 01/15/21

    PHP  118,000,000         2,850,112   

6.250%, due 01/14/36

      10,000,000         263,080   
     

 

 

  
        4,417,525   
     

 

 

  

Poland — 3.79%

      

Republic of Poland,

      

4.750%, due 04/25/17

    PLN  16,500,000         4,765,009   

5.000%, due 04/25/16

      5,300,000         1,490,153   

5.000%, due 03/23/22

    $ 200,000         229,448   

5.500%, due 10/25/19

    PLN  6,000,000         1,899,183   
     

 

 

  
        8,383,793   
     

 

 

  

Romania — 1.41%

      

Government of Romania,

      

4.375%, due 08/22/231

    $ 200,000         217,950   

5.750%, due 01/27/16

    RON 3,150,000         836,103   

5.900%, due 07/26/17

      5,200,000         1,451,671   

6.125%, due 01/22/441

    $ 450,000         600,188   
     

 

 

  
        3,105,912   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

  

Russia — 1.76%

      

Russian Federation,

      

5.625%, due 04/04/421

    $ 1,000,000       $ 792,500   

5.625%, due 04/04/422

      200,000         158,500   

7.000%, due 01/25/23

    RUB  25,100,000         245,659   

7.050%, due 01/19/28

      55,000,000         498,414   

7.500%, due 03/31/301,8

    $ 524,000         527,668   

7.500%, due 03/31/302,8

      30,130         30,341   

7.600%, due 04/14/21

    RUB  87,500,000         916,688   

8.150%, due 02/03/27

      69,500,000         717,599   
     

 

 

  
        3,887,369   
     

 

 

  

South Africa — 3.13%

      

Republic of South Africa,

      

5.500%, due 03/09/20

    $ 100,000         110,000   

5.875%, due 09/16/25

      1,150,000         1,335,437   

6.250%, due 03/31/36

    ZAR 13,900,000         1,014,370   

7.000%, due 02/28/31

      14,000,000         1,142,130   

7.750%, due 02/28/23

      20,950,000         1,895,197   

10.500%, due 12/21/26

      11,050,000         1,201,755   

13.500%, due 09/15/16

      2,266,666         216,459   
     

 

 

  
        6,915,348   
     

 

 

  

Sri Lanka — 1.07%

      

Republic of Sri Lanka,

      

5.875%, due 07/25/222

    $ 700,000         729,750   

6.250%, due 10/04/201

      550,000         580,938   

6.250%, due 10/04/202

      1,000,000         1,056,250   
     

 

 

  
        2,366,938   
     

 

 

  

Thailand — 3.22%

      

Government of Thailand,

      

1.200%, due 07/14/212,6

    THB  160,042,740         4,597,847   

3.775%, due 06/25/32

      10,000,000         318,441   

3.875%, due 03/07/18

      2,100,000         67,049   

3.875%, due 06/13/19

      62,100,000         2,026,285   

5.125%, due 03/13/18

      3,400,000         112,546   
     

 

 

  
        7,122,168   
     

 

 

  

Turkey — 5.40%

      

Republic of Turkey,

      

5.125%, due 03/25/22

    $ 1,450,000         1,575,062   

5.625%, due 03/30/21

      1,000,000         1,112,500   

6.250%, due 09/26/22

      230,000         267,088   

6.750%, due 05/30/40

      200,000         259,000   

6.875%, due 03/17/36

      250,000         323,437   

7.100%, due 03/08/23

    TRY  3,250,000         1,321,514   

7.500%, due 11/07/19

    $ 200,000         236,750   

8.000%, due 02/14/34

      350,000         499,187   

8.500%, due 09/14/22

    TRY  1,500,000         660,366   

10.500%, due 01/15/20

      12,100,000         5,676,410   
     

 

 

  
        11,931,314   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (concluded)

      

Non-US government obligations — (concluded)

      

Ukraine — 0.29%

      

Financing of Infrastructural Projects State Enterprise,

      

8.375%, due 11/03/171

    $ 1,150,000       $ 546,254   

Ukraine Government International Bond,

      

9.250%, due 07/24/172

      200,000         106,000   
     

 

 

  
        652,254   
     

 

 

  

Uruguay — 0.09%

      

Republic of Uruguay,

      

4.500%, due 08/14/24

      116,000         126,730   

6.875%, due 09/28/25

      60,000         76,950   
     

 

 

  
        203,680   
     

 

 

  

Venezuela — 1.14%

      

Republic of Venezuela,

      

7.650%, due 04/21/25

      2,850,000         919,125   

7.750%, due 10/13/192

      365,000         119,538   

8.250%, due 10/13/242

      2,000,000         655,000   

9.250%, due 05/07/282

      712,000         248,488   

9.375%, due 01/13/34

      1,700,000         582,250   
     

 

 

  
        2,524,401   
     

 

 

  

Vietnam — 0.27%

      

Socialist Republic of Vietnam,

      

4.800%, due 11/19/241

      200,000         209,000   

6.750%, due 01/29/202

      350,000         394,188   
     

 

 

  
        603,188   
     

 

 

  

Zambia — 0.16%

      

Republic of Zambia,

      

5.375%, due 09/20/221

      400,000         356,000   
     

 

 

  

Total Non-US government obligations
(cost $172,051,666)

         151,988,218   
     

 

 

  

Structured notes — 3.60%

      

Bangladesh — 0.71%

      

Standard Chartered Bank,

      

11.700%, due 06/05/181

(linked to People’s Republic of Bangladesh Bonds,

11.700% due 06/05/18)

      1,485,000         1,565,964   
     

 

 

  

Ghana — 0.24%

      

Citigroup Funding, Inc.,

      

23.000%, due 08/23/171

(linked to Republic of Ghana,

23.000%, due 08/21/17)

      GHS 1,750,000         541,460   
     

 

 

  

India — 2.65%

      

Standard Chartered Bank,

      

7.160%, due 05/20/231

(linked to Republic of India,

7.160%, due 05/20/23)

    $ 5,775,736         5,851,277   
     

 

 

  

Total structured notes
(cost $7,998,844)

         7,958,701   
     

 

 

  

Total bonds
(cost $244,655,698)

         216,710,262   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

 

    Shares      Value  

Short-term investment — 0.38%

      

Investment company — 0.38%

      

UBS Cash Management Prime Relationship Fund9
(cost $844,449)

      844,449       $ 844,449   
     

 

 

  

Total investments — 98.45%
(cost $245,500,147)10

         217,554,711   

Cash and other assets, less liabilities — 1.55%

         3,428,771   
     

 

 

  

Net assets — 100.00%

       $ 220,983,482   
     

 

 

  

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

    $ 4,586,403   

Gross unrealized depreciation

      (32,531,839 ) 
  

 

 

  

Net unrealized depreciation of investments

    $ (27,945,436 ) 
  

 

 

  

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.

Forward foreign currency contracts

 

Counterparty

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

BB

    BRL      800,000       USD      294,724         03/18/15       $ 133   

BB

    IDR      11,532,413,042       USD      913,820         03/18/15         10,025   

BB

    INR      357,500,000       USD      5,648,155         03/18/15         (72,835 ) 

BB

    MXN      5,200,000       USD      353,681         03/18/15         7,732   

BB

    PHP      69,859,700       USD      1,559,098         03/18/15         (22,399 ) 

BB

    TRY      1,190,000       USD      510,905         03/18/15         28,770   

BB

    USD      1,132,181       CLP      694,480,000         03/18/15         (40,808 ) 

BB

    USD      5,350,585       MXN      79,606,000         03/18/15         (54,498 ) 

BB

    USD      2,522,405       PLN      8,500,000         03/18/15         (231,178 ) 

CSI

    BRL      11,360,000       USD      4,168,835         03/18/15         (14,361 ) 

CSI

    CNY      4,470,000       USD      722,833         03/18/15         11,095   

CSI

    MYR      3,300,000       USD      902,749         03/18/15         (3,557 ) 

CSI

    USD      5,190,445       MYR      18,205,487         03/18/15         (190,524 ) 

DB

    BRL      7,877,850       USD      2,877,438         03/18/15         (23,494 ) 

DB

    COP      1,425,000,000       USD      613,695         03/18/15         32,128   

DB

    MYR      9,715,000       USD      2,682,220         03/18/15         14,110   

DB

    USD      2,739,760       COP      6,667,890,000         03/18/15         (18,480 ) 

DB

    USD      2,205,961       RUB      133,217,999         03/18/15         (312,770 ) 

DB

    USD      68,913       THB      2,288,590         03/18/15         864   

DB

    USD      3,438,644       ZAR      40,195,000         03/18/15         (10,417 ) 

GSI

    BRL      1,220,000       USD      448,942         03/18/15         (310 ) 

GSI

    CLP      639,660,600       USD      1,025,508         03/18/15         20,283   

GSI

    PEN      6,837,000       USD      2,267,957         03/18/15         48,853   

GSI

    TRY      1,190,000       USD      511,059         03/18/15         28,924   

GSI

    USD      4,380,731       HUF      1,088,217,499         03/18/15         (428,931 ) 

GSI

    USD      166,560       RON      600,000         03/18/15         (13,795 ) 

GSI

    USD      3,096,428       TRY      7,134,324         03/18/15         (205,919 ) 

JPMCB

    EUR      4,010,000       USD      4,787,627         04/16/15         253,312   

Net unrealized depreciation on forward foreign currency contracts

  

       $ (1,188,047 ) 
                 

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

Futures contracts

 

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

US Treasury futures buy contracts:

          

US Long Bond, 20 contracts (USD)

      March 2015       $     2,814,455      $     3,025,625      $     211,170   

5 Year US Treasury Notes, 8 contracts (USD)

      March 2015         951,852        970,749        18,897   

US Treasury futures sell contracts:

          

US Ultra Bond, 5 contracts (USD)

      March 2015         (822,553 )      (894,687 )      (72,134 ) 

10 Year US Treasury Notes, 2 contracts (USD)

      March 2015         (252,275 )      (261,750 )      (9,475 ) 

Net unrealized appreciation on futures contracts

           $ 148,458   
         

 

 

  

Currency swap agreements11

 

   

Notional Amount

                                

Counterparty

  

Pay contracts

   Receive contracts  

Termination date

   Pay
rate12		    

Receive
rate12

   Upfront
payment		     Value     Unrealized
appreciation		  

BB

   PHP   85,653,500     USD      2,085,803   12/18/15     1.300%      6 month USD LIBOR   $ —      $ 146,821      $ 146,821   
               

 

 

    

 

 

    

 

 

  

Interest rate swap agreements

 

Counterparty

  

Notional

amount

   Termination
date		    

Payments
made by
the Fund12

  

Payments received by
the Fund12

   Upfront
payments		     Value     Unrealized
appreciation/
(depreciation)		  

CITI

   BRL   6,749,706     01/02/17      1 Day CDI   12.280%   $ —      $ 29,346      $ 29,346   

CITI

   BRL   2,814,422     01/04/21      12.570%   1 Day CDI     —        (87,086 )      (87,086 ) 

CITI

   MXN   27,530,000     03/21/19      5.510   28 day MXIBTIIE     —        (69,022 )      (69,022 ) 

CITI

   MXN   16,200,000     03/14/24      28 day MXIBTIIE   6.570     —        94,810        94,810   

CITI

   MYR   1,950,000     08/24/15      3 month KLIBOR   3.505     —        (1,593 )      (1,593 ) 

DB

   MYR   7,650,000     08/24/15      3 month KLIBOR   3.500     —        (6,326 )      (6,326 ) 

DB

   ZAR   12,700,000     05/31/23      3 month JIBAR   7.480     —        45,236        45,236   

MLI

   MXN   7,200,000     11/16/28      28 day MXIBTIIE   8.830     —        143,991        143,991   

MLI

   MXN   7,000,000     11/21/28      28 day MXIBTIIE   8.610     —        131,562        131,562   

MLI

   ZAR   35,000,000     06/04/18      3 month JIBAR   6.400     —        8,470        8,470   
           

 

 

    

 

 

    

 

 

  
            $ —      $ 289,388      $ 289,388   
           

 

 

    

 

 

    

 

 

  

Credit default swap on credit indices—buy protection13

 

Counterparty

  

Referenced index14

   Notional amount     Termination
date		     Payments
made
by  the
Fund12		     Upfront
payments
received		     Value     Unrealized
appreciation		  

BB

   CDX.EM Series 21 Index     USD  1,350,000        06/20/19        5.000 %    $ 136,714      $ (31,201 )    $ 105,513   

BB

   CDX.EM Series 21 Index     USD  1,700,000        06/20/19        5.000        172,977        (39,290 )      133,687   

DB

   CDX.EM Series 21 Index     USD  3,050,000        06/20/19        5.000        308,877        (70,490 )      238,387   

MLI

   CDX.EM Series 20 Index     USD  1,500,000        12/20/18        5.000        106,500        (24,501 )      81,999   
         

 

 

    

 

 

    

 

 

  
          $ 725,068      $ (165,482 )    $ 559,586   
         

 

 

    

 

 

    

 

 

  

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (unaudited)

 

Credit default swaps on sovereign issues—buy protection13

 

Counterparty

  

Referenced obligation14

   Notional amount     Termination
date		     Payments
made
by  the
Fund12		     Upfront
payments
made		     Value     Unrealized
appreciation		  

DB

   Federation of Russia bond,
7.500%, due 03/31/30		     USD  1,000,000        03/20/16        1.000 %    $ (16,785 )    $ 56,007      $ 39,222   

DB

   Republic of Colombia bond,
10.375%, due 01/28/33		     USD     680,000        12/20/24        1.000        (37,843 )      65,563        27,720   
         

 

 

    

 

 

    

 

 

  
          $ (54,628 )    $ 121,570        66,942   
         

 

 

    

 

 

    

 

 

  

Credit default swaps on sovereign issues—sell protection15

 

Counterparty

  

Referenced obligation14

   Notional amount     Termination
date		     Payments
received
by  the
Fund12		     Upfront
payments
received		     Value     Unrealized
depreciation		     Credit
spread16		  

BB

   Federal Republic of Brazil bond,
12.250%, due 03/06/30		     USD     180,000        06/20/22        1.000 %    $ 14,775      $ (18,412 )    $ (3,637 )      2.610 % 

BB

   Federation of Russia bond,
7.500%, due 03/31/30		     USD  2,900,000        12/20/22        1.000        277,973        (850,049 )      (572,076 )      6.280   

DB

   Federal Republic of Brazil bond,
12.250%, due 03/06/30		     USD     800,000        06/20/22        1.000        64,908        (81,830 )      (16,922 )      2.610   

DB

   United Mexican States bond,
7.500%, due 04/08/33		     USD     680,000        12/20/24        1.000        22,977        (36,334 )      (13,357 )      1.640   
         

 

 

    

 

 

    

 

 

    
          $ 380,633      $ (986,625 )      (605,992 )   
         

 

 

    

 

 

    

 

 

    

The following is a summary of the fair valuations according to the inputs used as of January 31, 2015 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

    $ —      $ 56,763,343      $  —       $ 56,763,343   

Non-US government obligations

      —        151,988,218        —         151,988,218   

Structured notes

      —        7,958,701        —         7,958,701   

Short-term investment

      —        844,449        —         844,449   

Forward foreign currency contracts

      —        456,229        —         456,229   

Futures contracts

      230,067        —        —         230,067   

Swap agreements

      —        721,806        —         721,806   

Total

    $ 230,067      $ 218,732,746      $ —       $ 218,962,813   

Liabilities

          

Forward foreign currency contracts

    $ —      $ (1,644,276 )    $ —       $ (1,644,276 ) 

Futures contracts

      (81,609 )      —        —         (81,609 ) 

Swap agreements

      —        (1,316,134 )      —         (1,316,134 ) 

Total

    $ (81,609 )    $ (2,960,410 )    $ —       $ (3,042,019 ) 

At January 31, 2015, there were no transfers between Level 1 and Level 2.

Global High Income Fund Inc.

Portfolio of investments — January 31, 2015 (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, 2015, the value of these securities amounted to $43,163,378 or 19.53% 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, 2015, the value of these securities amounted to $56,764,457 or 25.69% of net assets.

  3 

Variable or floating rate security — The interest rate shown is the current rate as of January 31, 2015 and changes periodically.

  4 

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

  5 

Security is in default.

  6 

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.

  7 

Rate shown reflects annualized yield at January 31, 2015 on zero coupon bond.

  8 

Step bond — Coupon rate increases in increments to maturity. Rate disclosed is as of January 31, 2015. Maturity date disclosed is the ultimate maturity date.

  9 

The table below details the Fund’s investment in a fund advised by the same Advisor as the Fund. The Advisor does not earn a management fee from the affiliated UBS Relationship Fund.

 

Security description

    Value
10/31/14		      Purchases
during the
three months
ended
01/31/15		      Sales
during the
three months
ended
01/31/15		      Value
01/31/15		      Net income
earned from
affiliate for the
three months
ended
01/31/15		  

UBS Cash Management Prime Relationship Fund

    $ 6,240,018       $ 11,322,320       $ 16,717,889       $ 844,449       $ 1,092   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  10 

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 last reported 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 Global Asset Management (Americas) Inc. (“UBS Global 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.

  11 

Illiquid investment as of January 31, 2015.

  12 

Payments made or received are based on the notional amount.

  13 

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 underlying securities comprising the referenced index 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 or underlying securities comprising the referenced index.

  14 

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

  15 

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.

  16 

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.

Portfolio acronyms

 

CDI    CHESS Depositary Interest
GDP    Gross Domestic Product
GMTN    Global Medium Term Note
JIBAR    Johannesburg Interbank Agreed Rate
JSC    Joint Stock Company
KLIBOR    Korea Interbank Offered Rate
LIBOR    London Interbank Offered Rate
MXIBTIIE    Mexico Interbank TIIE 28 Day Rate
OJSC    Open Joint Stock Company
Counterparty abbreviations
BB    Barclays Bank PLC
CITI    Citibank NA
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
CNY    Chinese Yuan
COP    Colombian Peso
EUR    Euro
GHS    Ghanaian Cedi
HUF    Hungarian Forint
IDR    Indonesian Rupiah
INR    Indian Rupee
MXN    Mexican Peso
MYR    Malaysian Ringgit
NGN    Nigerian Naira
PEN    Peruvian Nuevo Sol
PHP    Philippine Peso
PLN    Polish Zloty
RON    Romanian Leu
RUB    Russian Ruble
THB    Thai Baht
TRY    Turkish Lira
USD    United States Dollar
ZAR    South African Rand

Global High Income Fund Inc.

The Fund’s Board of Directors (the “Board”) has delegated to the UBS Global 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, including members of the investment team.

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.

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.

For more information regarding the Fund’s other significant accounting policies, please refer to the Fund’s annual report to shareholders dated October 31, 2014.

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: April 1, 2015

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

 

By:  

/s/ Mark E. Carver

  Mark E. Carver
  President

Date: April 1, 2015

 

By:  

/s/ Thomas Disbrow

  Thomas Disbrow
  Vice President and Treasurer

Date: April 1, 2015