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: 811-21901

 

ALPINE GLOBAL DYNAMIC DIVIDEND FUND

(Exact name of registrant as specified in charter)

 

2500 Westchester Avenue, Suite 215, Purchase, New York 10577

(Address of principal executive offices) (Zip code)

 

Alpine Woods Capital Investors, LLC

2500 Westchester Avenue, Suite 215

Purchase, New York 10577

(Name and address of agent for service)

 

Copies of information to:

 

 Rose F. DiMartino, Esq.   Sarah E. Cogan, Esq.
 Willkie Farr & Gallagher LLP   Simpson Thacher & Bartlett LLP
 787 Seventh Avenue   425 Lexington Ave
 New York, NY 10019-6099   New York, NY 10174

 

Registrant’s telephone number, including area code: 914-251-0880

 

Date of fiscal year end: October 31, 2015

 

Date of reporting period: July 31, 2015

 

Item 1. Schedule of Investments.

 

Schedule of Portfolio Investments Alpine Global Dynamic Dividend Fund
July 31, 2015 (Unaudited)  
         
Shares   Security
Description
  Value
           
Common Stocks-102.3%    
           
Aerospace & Defense-0.5%    
 7,000   Raytheon Co.  $763,630 
           
Air Freight & Logistics-2.3%    
 7,700   FedEx Corp. (a)   1,319,934 
 250,000   Royal Mail PLC   1,971,584 
         3,291,518 
           
Airlines-0.7%    
 28,400   Japan Airlines Co., Ltd.   1,072,433 
           
Auto Components-1.4%    
 8,100   Delphi Automotive PLC   632,448 
 144,500   GKN PLC   718,722 
 12,800   Magna International, Inc.   695,808 
         2,046,978 
           
Automobiles-1.1%    
 49,000   Ford Motor Co.   726,670 
 16,500   Thor Industries, Inc.   922,020 
         1,648,690 
           
Banks-4.1%    
 100,000   Banco Bilbao Vizcaya Argentaria SA   1,011,928 
 85,100   Bangkok Bank PCL-NVDR   400,811 
 28,200   Hana Financial Group, Inc.   702,500 
 76,000   Mitsubishi UFJ Financial Group, Inc.   551,902 
 105,000   Regions Financial Corp. (a)   1,090,950 
 47,500   Standard Chartered PLC   727,097 
 9,600   Sumitomo Mitsui Financial Group, Inc.   429,438 
 17,900   Wells Fargo & Co. (a)   1,035,873 
         5,950,499 
           
Beverages-1.2%    
 14,700   Anheuser-Busch InBev NV-SP ADR (a)   1,757,385 
           
Biotechnology-0.3%    
 3,700   Gilead Sciences, Inc.   436,082 
           
Capital Markets-4.4%    
 53,000   Daiwa Securities Group, Inc.   412,120 
 101,300   Fortress Investment Group LLC-Class A   692,892 
 149,099   Intermediate Capital Group PLC   1,358,625 
 13,500   Lazard, Ltd.-Class A   748,035 
 56,336   Mediobanca SpA   613,452 
 56,744   Och-Ziff Capital Management Group LLC-Class A (a)   657,663 
 42,000   OM Asset Management PLC   742,140 
 21,600   Schroders PLC   1,066,932 
         6,291,859 
           
Chemicals-1.8%    
 79,000   Clariant AG (b)   1,576,239 
 15,000   Symrise AG   997,157 
         2,573,396 

 

The accompanying notes are an integral part of these financial statements.

 
Schedule of Portfolio Investments Alpine Global Dynamic Dividend Fund
July 31, 2015 (Unaudited)  
   
Commercial Services & Supplies-2.6%    
 24,900   ISS A/S   857,502 
 36,700   KAR Auction Services, Inc. (a)   1,428,731 
 84,500   RR Donnelley & Sons Co. (a)   1,482,975 
         3,769,208 
           
Communications Equipment-2.5%    
 38,000   Cisco Systems, Inc. (a)   1,079,960 
 14,000   Ei Towers SpA   898,699 
 148,000   Nokia OYJ   1,045,139 
 9,500   QUALCOMM, Inc. (a)   611,705 
         3,635,503 
           
Construction & Engineering-2.0%    
 295,000   Abengoa SA-B Shares   663,195 
 575,500   China Railway Construction Corp., Ltd.-Class H   749,784 
 22,900   Vinci SA   1,468,756 
         2,881,735 
           
Consumer Finance-0.7%    
 19,000   Discover Financial Services   1,060,390 
           
Containers & Packaging-1.2%    
 93,000   DS Smith PLC   581,660 
 16,898   Packaging Corp. of America   1,196,210 
         1,777,870 
           
Diversified Financial Services-2.3%    
 104,100   Cerved Information Solutions SpA (b)   839,167 
 19,500   Citigroup, Inc. (a)   1,139,970 
 21,500   Eurazeo SA   1,397,145 
         3,376,282 
          
Diversified Telecommunication Services-1.0%    
 19,000   BT Group PLC-SP ADR   1,372,940 
           
Electric Utilities-1.9%    
 23,500   Eversource Energy (a)   1,168,420 
 67,500   SSE PLC   1,596,983 
         2,765,403 
          
Electronic Equipment, Instruments & Components-1.1%    
 26,500   TE Connectivity, Ltd. (a)   1,614,380 
           
Energy Equipment & Services-0.5%    
 8,500   Schlumberger, Ltd.   703,970 
           
Food & Staples Retailing-1.4%    
 18,500   CVS Health Corp.   2,080,695 
           
Food Products-3.6%    
 33,200   Mondelez International, Inc.-Class A (a)   1,498,316 
 22,500   Nestle SA   1,704,439 
 14,285   Nomad Foods, Ltd. (b)   296,414 
 22,500   Pinnacle Foods, Inc. (a)   1,011,375 
 8,500   The Kraft Heinz Co.   675,495 
         5,186,039 
           
Gas Utilities-0.7%    
 218,000   Infraestructura Energetica Nova SAB de CV   1,060,742 
           
Health Care Equipment & Supplies-1.2%    
 22,500   Medtronic PLC (a)   1,763,775 

 

The accompanying notes are an integral part of these financial statements.

 
Schedule of Portfolio Investments Alpine Global Dynamic Dividend Fund
July 31, 2015 (Unaudited)  
   
Health Care Providers & Services-4.0%    
 7,100   Anthem, Inc.   1,095,317 
 6,900   HCA Holdings, Inc. (a)(b)   641,769 
 7,100   Humana, Inc. (a)   1,292,839 
 6,300   McKesson Corp. (a)   1,389,591 
 6,300   UnitedHealth Group, Inc.   764,820 
 4,000   Universal Health Services, Inc.-Class B   580,920 
         5,765,256 
          
Hotels, Restaurants & Leisure-1.7%    
 15,500   Carnival Corp.   825,995 
 7,500   McDonald’s Corp.   748,950 
 9,000   Royal Caribbean Cruises, Ltd.   808,650 
         2,383,595 
          
Household Durables-1.3%    
 22,500   Lennar Corp.-Class A   1,193,400 
 16,000   Ryland Group, Inc.   727,520 
         1,920,920 
          
Household Products-1.3%    
 10,000   Colgate-Palmolive Co. (a)   680,200 
 10,100   Energizer Holdings, Inc.   388,951 
 28,500   Svenska Cellulosa AB SCA-B Shares   811,383 
         1,880,534 
          
Independent Power Producers & Energy Traders-1.1%    
 29,220   Abengoa Yield PLC   741,604 
 35,208   Pattern Energy Group, Inc.   860,131 
         1,601,735 
          
Industrial Conglomerates-0.5%    
 46,000   CK Hutchison Holdings, Ltd.   682,972 
           
Insurance-4.9%    
 4,500   Allianz SE   736,871 
 317,625   Direct Line Insurance Group PLC   1,814,935 
 42,000   Montpelier Re Holdings, Ltd.   1,791,300 
 9,900   Prudential Financial, Inc.   874,764 
 6,000   Zurich Insurance Group AG (b)   1,827,383 
         7,045,253 
           
IT Services-1.6%    
 15,000   Accenture PLC-Class A (a)   1,546,650 
 11,000   Computer Sciences Corp.   719,730 
         2,266,380 
           
Life Sciences Tools & Services-1.2%    
 12,500   Thermo Fisher Scientific, Inc. (a)   1,744,125 
           
Machinery-1.8%    
 573,650   CRRC Corp., Ltd.-Class H   724,434 
 11,500   Snap-on, Inc. (a)   1,895,200 
         2,619,634 

 

The accompanying notes are an integral part of these financial statements.

 
Schedule of Portfolio Investments Alpine Global Dynamic Dividend Fund
July 31, 2015 (Unaudited)  
   
Media-4.0%    
 19,100   CBS Corp.-Class B   1,021,277 
 12,000   Comcast Corp.-Class A (a)   748,920 
 214,000   ITV PLC   938,081 
 12,500   The Walt Disney Co. (a)   1,500,000 
 9,000   Time Warner, Inc.   792,360 
 32,600   WPP PLC   748,374 
         5,749,012 
           
Multi-Utilities-0.8%    
 35,400   CMS Energy Corp. (a)   1,212,804 
           
Multiline Retail-1.5%    
 9,500   Dollar General Corp.   763,515 
 160,200   Marks & Spencer Group PLC   1,360,960 
         2,124,475 
           
Oil, Gas & Consumable Fuels-5.2%    
 6,300   Chevron Corp.   557,424 
 32,800   Enbridge, Inc. (a)   1,428,768 
 8,200   EOG Resources, Inc.   632,958 
 11,800   Exxon Mobil Corp.   934,678 
 17,400   Occidental Petroleum Corp. (a)   1,221,480 
 14,500   Phillips 66 (a)   1,152,750 
 30,143   The Williams Cos., Inc. (a)   1,581,905 
         7,509,963 
           
Personal Products-0.7%    
 10,100   Edgewell Personal Care Co.   966,671 
           
Pharmaceuticals-6.4%    
 42,000   AstraZeneca PLC-SP ADR   1,419,180 
 7,800   Bayer AG   1,150,461 
 11,500   Merck & Co., Inc.   678,040 
 23,000   Novartis AG-SP ADR (a)   2,386,250 
 6,500   Roche Holding AG   1,877,419 
 25,500   Teva Pharmaceutical Industries, Ltd.-SP ADR (a)   1,760,010 
         9,271,360 
          
Real Estate Investment Trusts-5.5%    
 13,423   American Tower Corp. (a)   1,276,662 
 125,663   Fibra Uno Administracion SA de CV   301,903 
 140   Nippon Building Fund, Inc.   625,812 
 112,500   NorthStar Realty Finance Corp.   1,800,000 
 466,666   Prologis Property Mexico SA de CV (b)   787,503 
 106,184   Scentre Group   307,356 
 29,000   Starwood Waypoint Residential Trust   709,920 
 40,000   The Geo Group, Inc.   1,510,000 
 85,220   Westfield Corp.   624,784 
         7,943,940 
           
Real Estate Management & Development-1.8%    
 65,000   BR Malls Participacoes SA   243,943 
 129,500   BR Properties SA   429,278 
 46,000   Cheung Kong Property Holdings, Ltd. (b)   383,319 
 54,500   Mitsui Fudosan Co., Ltd.   1,551,646 
         2,608,186 

 

The accompanying notes are an integral part of these financial statements.

 
Schedule of Portfolio Investments Alpine Global Dynamic Dividend Fund
July 31, 2015 (Unaudited)  
   
Road & Rail-3.0%    
 9,800   Canadian Pacific Railway, Ltd. (a)   1,576,330 
 12,000   Kansas City Southern   1,190,280 
 1,122,928   Rumo Logistica Operadora Multimodal SA (b)   298,446 
 13,900   Ryder System, Inc. (a)   1,258,228 
         4,323,284 
           
Semiconductors & Semiconductor Equipment-2.8%    
 46,900   Applied Materials, Inc.   814,184 
 10,300   Avago Technologies, Ltd. (a)   1,288,942 
 13,500   Broadcom Corp.-Class A   683,235 
 23,500   Intel Corp.   680,325 
 19,500   SK Hynix, Inc.   618,254 
         4,084,940 
           
Specialty Retail-2.4%    
 260,000   Pets at Home Group PLC   1,173,425 
 93,596   Stein Mart, Inc. (a)   953,743 
 20,100   TJX Cos., Inc. (a)   1,403,382 
         3,530,550 
           
Technology, Hardware, Storage & Peripherals-4.0%    
 22,000   Apple, Inc. (a)   2,668,600 
 51,300   EMC Corp. (a)   1,379,457 
 1,000   Samsung Electronics Co., Ltd.   1,012,691 
 8,500   Western Digital Corp.   731,510 
         5,792,258 
           
Textiles, Apparel & Luxury Goods-1.2%    
 10,000   Carter’s, Inc. (a)   1,014,100 
 10,000   VF Corp.   770,900 
         1,785,000 
           
Trading Companies & Distributors-0.5%    
 44,500   Ashtead Group PLC   682,078 
           
Transportation Infrastructure-0.9%    
 259,000   Adani Ports & Special Economic Zone, Ltd.   1,314,426 
           
Water Utilities-0.4%    
 11,800   American Water Works Co., Inc. (a)   612,538 
           
Wireless Telecommunication Services-1.3%    
 49,000   Vodafone Group PLC-SP ADR (a)   1,851,220 
    Total Common Stocks (Cost $134,074,219)   148,154,511 
           
Equity-Linked Structured Notes-1.7%    
     
Machinery-0.7%    
 247,248   Melrose Industries PLC   992,426 
           
Multi-Utilities-1.0%    
 65,500   Veolia Environnement SA-Morgan Stanley BV   1,462,087 
     Total Equity-Linked Structured Notes (Cost $2,493,827)   2,454,513 

 

Principal
Amount
        
           
Convertible Bonds-0.0% (c)     
           
Household Durables-0.0% (c)     
$154,733   PDG Realty SA Empreendimentos e Participacoes-Series 8, 0.000%, 9/19/16 (Brazilian Real) (d)   452 
     Total Convertible Bonds (Cost $55,510)   452 
           
Total Investments (Cost $136,623,556)-104.0%   150,609,476 
           
Liabilities in Excess of Other Assets-(4.0)%   (5,844,706)
           
TOTAL NET ASSETS 100.0%  $144,764,770 

 

The accompanying notes are an integral part of these financial statements.

 
Schedule of Portfolio Investments Alpine Global Dynamic Dividend Fund
July 31, 2015 (Unaudited)  
   

Percentages are stated as a percent of net assets.

(a) All or a portion of the security has been designated as collateral for the line of credit.

(b) Non-income producing security.

(c) Less than 0.05% of Net Assets.

(d) Represents a zero-coupon bond.

AB-Aktiebolag is the Swedish equivalent of a corporation.

AG-Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by shareholders.

A/S-Aktieselskab is the Danish term for a stock-based corporation.

BV-Besloten Vennootschap is the Dutch equivalent of a private limited liability company.

NV-Naamloze Vennootschap is the Dutch term for a public limited liability corporation.

NVDR-Non-Voting Depositary Receipts

PCL-Public Company Limited

PLC-Public Limited Company

SA-Generally designates corporations in various countries, mostly those employing the civil law.

SA de CV-Sociedad Anonima de Capital Variable is the Spanish equivalent to Variable Capital Company.

SAB de CV-Sociedad Anonima Bursátil de Capital Variable is the Spanish equivalent to Variable Capital Company.

SCA-Societe en Commandite par actions is the French equivalent of a limited partnership.

SE-SE Regulation. A European Company which can operate on a Europe-wide basis and be governed by Community law directly applicable in all Member States.

SP ADR-Sponsored American Depositary Receipt

SpA-Societa’ Per Azioni is an Italian shared company.

 

The accompanying notes are an integral part of these financial statements.

 

Alpine Global Dynamic Dividend Fund

Notes to Schedule of Portfolio Investments

July 31, 2015 (Unaudited)

 

1. Organization:

 

Alpine Global Dynamic Dividend Fund (the “Fund”) is a diversified, closed-end management investment company. The Fund was organized as a Delaware Statutory Trust on May 11, 2006, and had no operating history prior to July 26, 2006. The Board of Trustees (the “Board”) authorized an unlimited number of shares with no par value. The Fund’s primary investment objective is to seek high current dividend income, more than 50% of which qualifies for the reduced Federal income tax rates created by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The Fund also focuses on longterm growth of capital as a secondary investment objective.

 

2. Significant Accounting Policies:

 

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require management to make estimates and assumptions that affect amounts reported herein. Actual results could differ from those estimates. Changes in the economic environment, financial markets and any other parameters used in determining these estimates could cause actual results to differ.

 

A. Valuation of Securities:

 

The net asset value (“NAV”) of shares of the Fund is calculated by dividing the value of the Fund’s net assets by the number of outstanding shares. NAV is determined each day the New York Stock Exchange (“NYSE”) is open as of the close of regular trading (normally, 4:00 p.m., Eastern Time). In computing NAV, portfolio securities of the Fund are valued at their current market values determined on the basis of market quotations or if market quotations are not readily available or determined to be unreliable, through procedures and/or guidelines established by the Board. In computing the Fund’s NAV, equity securities that are traded on a securities exchange in the United States, except for those listed on NASDAQ Global Market, NASDAQ Global Select Market and NASDAQ Capital Market exchanges (collectively, “NASDAQ”) and option securities are valued at the last reported sale price as of the time of valuation. Securities traded on NASDAQ will be valued at the NASDAQ Official Closing Prices (“NOCP”). If, on a particular day, an exchange traded or NASDAQ security does not trade, then the mean between the most recent quoted bid and asked prices will be used. For equity investments traded on more than one exchange, the last reported sale price on the exchange where the stock is primarily traded is used. Equity-linked structured notes are valued by referencing the last reported sale or settlement price of the underlying security on the day of valuation. Foreign exchange adjustments are applied to the last reported price to convert the underlying security’s trading currency to the equity-linked structured note’s settlement currency. These investments are categorized as Level 2 of the fair value hierarchy. Each option security traded on a securities exchange in the United States is valued at the last current reported sales price as of the time of valuation if the last current reported sales price falls within the consolidated bid/ask quote. If the last current reported sale price does not fall within the consolidated bid/ask quote, the security is valued at the mid-point of the consolidated bid/ask quote for the option security. Forward currency contracts are valued based on third-party vendor quotations. Each security traded in the over-the-counter market and quoted on the NASDAQ National Market System is valued at the NOCP, as determined by NASDAQ, or lacking an NOCP, the last current reported sale price as of the time of valuation by NASDAQ, or lacking any current reported sale on NASDAQ at the time of valuation, at the mean between the most recent bid and asked quotations. Each over-the-counter option that is not traded through the Options Clearing Corporation is valued by the counterparty, or if the counterparty’s price is not readily available, then by using the Black-Scholes method. Debt and short-term securities are valued based on an evaluated bid price as furnished by pricing services approved by the Board, which may be based on market transactions for comparable securities and various relationships between securities that are generally recognized by institutional traders, a computerized matrix system, or appraisals derived from information concerning the securities or similar securities received from recognized dealers in those securities. Each other security traded over-the-counter is valued at the mean between the most recent bid and asked quotations.

 

Securities that are principally traded in a foreign market are valued at the last current sale price at the time of valuation or lacking any current or reported sale, at the time of valuation, at the mean between the most recent bid and asked quotations as of the close of the appropriate exchange or other designated time. Trading in securities on European and Far Eastern securities exchanges and over-the-counter markets is normally completed at various times before the close of business on each day on which the NYSE is open. Trading of these securities may not take place on every NYSE business day. In addition, trading may take place in various foreign markets on Saturdays or on other days when the NYSE is not open and on which the Fund’s NAV is not calculated.

 

When market quotations are not readily available or when the valuation methods mentioned above are not reflective of a fair value of the security, the security is valued at fair value following procedures and/or guidelines approved by the Board. The Fund may also use fair value pricing, if the value of a security it holds is, pursuant to the Board guidelines, materially affected by events occurring before the Fund’s NAV is calculated but after the close of the primary market or market transactions for

 

comparable securities and various relationships between securities that are generally recognized by institutional traders, a computerized matrix system, or appraisals derived from information concerning the securities or similar securities received from recognized dealers in those securities. The Board has approved the use of a third-party pricing vendor’s proprietary fair value pricing model to assist in determining current valuation for foreign equities and OTC derivatives traded in markets that close prior to the NYSE. When fair value pricing is employed, the value of the portfolio security used to calculate the Fund’s NAV may differ from quoted or official closing prices. The Fund may also fair value a security if the Fund or Adviser believes that the market price is stale. Other types of securities that the Fund may hold for which fair value pricing might be required include illiquid securities including restricted securities and private placements for which there is no public market.

 

Fair Value Measurement:

 

In accordance with GAAP, the Fund uses a three-tier hierarchy to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability that are developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entities’ own assumptions about the assumptions market participants would use in pricing the asset or liability that are developed based on the best information available.

 

Level 1   -   Unadjusted quoted prices in active markets/exchanges for identical investments.

 

Level 2   -   Other significant observable inputs (including quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, etc.).

 

Level 3   -   Significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments).

 

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example, the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

 

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement falls, is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

 

Various inputs are used in determining the value of the Fund’s investments as of the reporting period end. The designated input levels are not necessarily an indication of the risk or liquidity associated with these investments. These inputs are categorized in the following hierarchy under GAAP.

 

The Fund uses valuation techniques to measure fair value that are consistent with the market approach and/or income approach, depending on the type of security and the particular circumstance. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable securities. The income approach uses valuation techniques to discount estimated future cash flows to present value.

 

The following is a summary of the inputs used to value the Fund’s assets and liabilities carried at fair value as of July 31, 2015:

 

   Valuation Inputs     
Investments in Securities at Value*  Level 1   Level 2   Level 3   Total Value 
Common Stocks                    
Consumer Discretionary  $21,189,220   $   $   $21,189,220 
Consumer Staples   11,871,324            11,871,324 
Energy   8,213,933            8,213,933 
Financials   33,875,598    400,811        34,276,409 
Health Care   18,980,598            18,980,598 
Industrials   21,400,918            21,400,918 
Information Technology   17,393,461            17,393,461 
Materials   4,351,266            4,351,266 
Telecommunication Services   3,224,160            3,224,160 
Utilities   7,253,222            7,253,222 
Equity-Linked Structured Notes       2,454,513        2,454,513 
Convertible Bonds       452        452 
Total  $147,753,700   $2,855,776   $   $150,609,476 
 
   Valuation Inputs     
Other Financial Instruments  Level 1   Level 2   Level 3   Total Value 
Assets                    
Forward Currency Contracts  $   $327,159   $   $327,159 
Total  $   $327,159   $   $327,159 

 

* For detailed industry descriptions, see accompanying Schedule of Portfolio Investments.

 

For the period ended July 31, 2015, there were no transfers between Level 1, Level 2 and Level 3. The Fund recognizes transfers as of the beginning of the period.

 

B. Federal and Other Income Taxes:

 

It is the Fund’s policy to comply with the Federal income and excise tax requirements of the Internal Revenue Code of 1986 (the “Code”), as amended, applicable to regulated investment companies and to timely distribute all of its investment company taxable income and net realized capital gains to shareholders in accordance with the timing requirements imposed by the Code. Therefore, no Federal income tax provision is required. Capital gains realized on some foreign securities are subject to foreign taxes. Dividends and interest from non-U.S. sources received by the Fund are generally subject to non-U.S. withholding taxes at rates ranging up to 30%. Such capital gains and withholding taxes, which are accrued as applicable, may be reduced or eliminated under the terms of applicable U.S. income tax treaties, and the Fund intend to undertake procedural steps to claim the benefits of such treaties. Where available, the Fund will file refund claims for foreign taxes withheld.

 

As of July 31, 2015, net unrealized appreciation/(depreciation) of investments, excluding foreign currency, based on Federal tax costs was as follows:*

 

Cost of
investments
   Gross unrealized appreciation   Gross unrealized depreciation   Net unrealized appreciation 
$136,623,556   $21,612,879   $(7,626,959)  $13,985,920 

 

* Because tax adjustments are calculated annually, the above table reflects the tax adjustments outstanding at the Fund’s previous fiscal year end. For the previous fiscal year’s Federal income tax information, please refer to the Notes to Financial Statements section in the Fund’s most recent semi-annual or annual report.

 

C. Distributions to Shareholders:

 

The Fund intends to make a level distribution each month to its shareholders of the net investment income of the Fund after payment of Fund operating expenses. The level distribution rate may be modified or eliminated by the Board from time to time. If a monthly distribution exceeds the Fund’s monthly estimated investment company taxable income (which may include net short-term capital gain) and net tax-exempt income, the excess could result in a tax-free return of capital distribution from the Fund’s assets. The determination of a tax-free return of capital is made on an annual basis as further described below. The Fund’s final distribution for each calendar year will include any remaining investment company taxable income and net tax-exempt income undistributed during the year, as well as all net capital gains, if any, realized during the year. If the total distributions made in any fiscal year exceed annual investment company taxable income, net tax-exempt income and net capital gain, such excess distributed amount would be treated as ordinary dividend income to the extent of the Fund’s current and accumulated earnings and profits. Distributions in excess of the accumulated investment company taxable income, net tax-exempt income and net capital gain would first be a tax-free return of capital to the extent of the adjusted tax basis in the shares. After such adjusted tax basis is reduced to zero, the distribution would constitute capital gain (assuming the shares are held as capital assets). Distributions to shareholders are recorded by the Fund on the ex-dividend date and are determined in accordance with income tax regulations, which may differ from GAAP.

 

D. Foreign Currency Translation Transactions:

 

The Fund may invest a portion of its assets in foreign securities. In the event that the Fund executes a foreign security transaction, the Fund will generally enter into a forward foreign currency contract to settle the foreign security transaction. The books and records of the Fund are maintained in U.S. dollars. Non-U.S. dollar-denominated amounts are translated into U.S. dollars as follows, with the resultant translations gains and losses recorded in the Statement of Operations:

 

i) market value of investment securities and other assets and liabilities at the exchange rate on the valuation date.

 

ii) purchases and sales of investment securities, income and expenses at the exchange rate prevailing on the respective date of such transactions.

 

E. Risks Associated with Foreign Securities and Currencies:

 

Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of domestic issuers. Such risks include future political and economic developments and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is a possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries. Generally, when the U.S. dollar rises in value against a foreign currency, the Funds’ investments denominated in that currency will lose value because that currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value.

 

Certain countries may also impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers or industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available to the Fund or result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.

 

F. Equity-Linked Structured Notes:

 

The Fund may invest in equity-linked structured notes. Equity-linked structured notes are securities which are specially designed to combine the characteristics of one or more underlying securities and their equity derivatives in a single note form. The return and/or yield or income component may be based on the performance of the underlying equity securities, and equity index, and/or option positions. Equity-linked structured notes are typically offered in limited transactions by financial institutions in either registered or non-registered form. An investment in equity-linked structured notes creates exposure to the credit risk of the issuing financial institution, as well as to the market risk of the underlying securities. There is no guaranteed return of principal with these securities and the appreciation potential of these securities may be limited by a maximum payment or call right. In certain cases, equity-linked structured notes may be more volatile and less liquid than less complex securities or other types of fixed-income securities. Such securities may exhibit price behavior that does not correlate with other fixed-income securities.

 

G. Forward Currency Contracts:

 

The Fund is subject to foreign currency exchange rate risk in the normal course of pursuing its investment objective. The Fund may use forward currency contracts to gain exposure, to or economically hedge against, changes in the value of foreign currencies. A forward currency contract (“forward”) is an agreement between two parties to buy and sell a currency at a set price on a future date. The market value of the forward contract fluctuates with changes in forward currency exchange rates. The forward contract is marked-to-market daily and the change in market value is recorded by the Fund as unrealized appreciation or depreciation. When the forward contract is closed, a Fund records a realized gain or loss equal to the fluctuation in value during the period the forward contract was open. A Fund could be exposed to risk if a counterparty is unable to meet the terms of a forward or if the value of the currency changes unfavorably. The Fund’s forward contracts are not subject to a master netting agreement or similar agreement.

 

The following forward contracts were held as of July 31, 2015:

 

Global Dynamic Dividend Fund     
      
Description  Counterparty   Settlement
Date
  Currency  Settlement
Value
  Current
Value
   Unrealized
Gain
 
Contracts Sold:                        
Swiss Franc  State Street Bank and Trust Company  12/09/15  4,300,000 CHF  $4,632,372  $4,470,925   $161,447 
Euro  State Street Bank and Trust Company  12/09/15  5,800,000 EUR   6,512,617   6,382,757    129,860 
British Pound  State Street Bank and Trust Company  12/09/15  4,700,000 GBP   7,367,156   7,333,888    33,268 
Japanese Yen  State Street Bank and Trust Company  12/09/15  278,000,000 JPY   2,250,411   2,247,827    2,584 
                $20,435,397   $327,159 
 

Item 2 - Controls and Procedures.

 

  (a) The Registrant’s principal executive officer and principal financial officer have evaluated the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of this filing and have concluded that the Registrant’s disclosure controls and procedures were effective, as of that date.

 

  (b) There was no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) 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.

 

Separate certifications for the Registrant’s principal executive officer and principal financial officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached as Ex99.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.

 

ALPINE GLOBAL DYNAMIC DIVIDEND FUND
       
By:   /s/ Samuel A. Lieber  
    Samuel A. Lieber  
    President (Principal Executive Officer)  
       
Date:   September 25, 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/ Samuel A. Lieber  
    Samuel A. Lieber  
    President (Principal Executive Officer)  
       
Date:   September 25, 2015   

 

By:   /s/ Ronald G. Palmer, Jr.  
    Ronald G. Palmer, Jr.  
   

Chief Financial Officer
(Principal Financial Officer)

 
       
Date:   September 25, 2015