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 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: July 31, 2015

Item 1. Schedule of Investments

Global High Income Fund Inc.

 

Industry diversification (unaudited)

As a percentage of net assets

As of July 31, 2015

 

 

  

Bonds

   

Corporate bonds

   

Airlines

      0.17 % 

Automobiles

      0.09   

Banks

      6.19   

Building products

      0.12   

Capital markets

      1.52   

Chemicals

      0.39   

Construction & engineering

      0.30   

Construction materials

      0.16   

Consumer finance

      0.20   

Diversified financial services

      3.60   

Electric utilities

      1.98   

Electrical equipment

      1.03   

Food & staples retailing

      0.10   

Food products

      0.22   

Independent power and renewable electricity producers

      0.21   

Marine

      0.25   

Metals & mining

      0.10   

Multiline retail

      0.10   

Oil, gas & consumable fuels

      6.81   

Real estate management & development

      0.12   

Road & rail

      1.24   

Wireless telecommunication services

      0.10   
  

 

 

  

Total corporate bonds

      25.00 % 

Non-US government obligations

      65.26   

Structured note

      0.85   

Supranational bond

      0.07   
  

 

 

  

Total bonds

      91.18 % 

Short-term investment

      6.75   
  

 

 

  

Total investments

      97.93 % 

Cash and other assets, less liabilities

      2.07   
  

 

 

  

Net assets

      100.00 % 
  

 

 

  
 

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds: 91.18%

      

Corporate bonds: 25.00%

      

Azerbaijan: 0.68%

      

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

      

7.200%, due 10/31/16

    $ 1,000,000       $ 1,006,250   

State Oil Co. of the Azerbaijan Republic,

      

6.950%, due 03/18/30

      400,000         410,072   
     

 

 

  
        1,416,322   
     

 

 

  

Brazil: 2.07%

      

Banco do Brasil SA,

      

5.875%, due 01/26/221

      1,050,000         1,003,800   

Banco Nacional de Desenvolvimento Economico e Social,

      

5.750%, due 09/26/232

      400,000         395,500   

Caixa Economica Federal,

      

2.375%, due 11/06/171

      200,000         191,700   

Centrais Eletricas Brasileiras SA,

      

5.750%, due 10/27/212

      1,530,000         1,357,110   

Minerva Luxembourg SA,

      

7.750%, due 01/31/232

      250,000         249,925   

Petrobras Global Finance BV,

      

2.429%, due 01/15/193

      470,000         424,175   

3.163%, due 03/17/203

      450,000         406,710   

7.250%, due 03/17/44

      325,000         285,142   
     

 

 

  
        4,314,062   
     

 

 

  

Chile: 0.58%

      

Colbun SA,

      

4.500%, due 07/10/242

      200,000         198,760   

Empresa Electrica Angamos SA,

      

4.875%, due 05/25/291

      250,000         247,500   

Empresa Electrica Guacolda SA,

      

4.560%, due 04/30/251

      300,000         289,875   

Empresa Nacional de Telecomunicaciones SA,

      

4.875%, due 10/30/242

      210,000         214,200   

Empresa Nacional del Petroleo,

      

4.750%, due 12/06/212

      250,000         259,062   
     

 

 

  
        1,209,397   
     

 

 

  

China: 1.97%

      

BOC Aviation Pte Ltd.,

      

3.000%, due 03/30/201

      425,000         418,936   

Charming Light Investments Ltd.,

      

3.750%, due 09/03/19

      200,000         200,649   

5.000%, due 09/03/24

      200,000         201,050   

China Cinda Finance 2014 Ltd.,

      

4.000%, due 05/14/192

      200,000         202,841   

5.625%, due 05/14/242

      450,000         473,103   

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Corporate bonds — (continued)

      

China — (concluded)

      

CNOOC Curtis Funding No 1 Pty Ltd.,

      

4.500%, due 10/03/231

    $ 235,000       $ 246,459   

Golden Eagle Retail Group Ltd.,

      

4.625%, due 05/21/232

      250,000         208,141   

Huarong Finance II Co. Ltd.,

      

5.500%, due 01/16/25

      500,000         519,507   

Prosperous Ray Ltd.,

      

4.625%, due 11/12/232

      200,000         209,623   

Sinochem Overseas Capital Co., Ltd.,

      

4.500%, due 11/12/201

      200,000         211,610   

4.500%, due 11/12/202

      265,000         280,383   

Sinopec Group Overseas Development 2014 Ltd.,

      

4.375%, due 04/10/241

      710,000         739,004   

Three Gorges Finance I Cayman Islands Ltd.,

      

3.700%, due 06/10/251

      200,000         202,411   
     

 

 

  
        4,113,717   
     

 

 

  

Colombia: 0.34%

      

Bancolombia SA,

      

5.125%, due 09/11/22

      210,000         208,740   

Ecopetrol SA,

      

7.375%, due 09/18/43

      480,000         501,254   
     

 

 

  
        709,994   
     

 

 

  

Croatia: 0.20%

      

Agrokor DD,

      

8.875%, due 02/01/201

      200,000         216,250   

Hrvatska Elektroprivreda,

      

6.000%, due 11/09/172

      200,000         209,000   
     

 

 

  
        425,250   
     

 

 

  

Ecuador: 0.22%

      

EP PetroEcuador via Noble Sovereign Funding I Ltd.,

      

5.912%, due 09/24/192,3

      536,842         459,000   
     

 

 

  

Hungary: 0.47%

      

Magyar Export-Import Bank Zrt,

      

4.000%, due 01/30/201

      650,000         654,206   

5.500%, due 02/12/182

      300,000         318,678   
     

 

 

  
        972,884   
     

 

 

  

India: 1.38%

      

Canara Bank/London,

      

6.365%, due 11/28/213

      650,000         658,216   

Delhi International Airport Pvt Ltd.,

      

6.125%, due 02/03/22

      230,000         235,750   

ICICI Bank Ltd.,

      

6.375%, due 04/30/222,3

      1,700,000         1,757,817   

Vedanta Resources PLC,

      

9.500%, due 07/18/182

      210,000         217,885   
     

 

 

  
        2,869,668   
     

 

 

  

Indonesia: 1.60%

      

Indo Energy Finance II BV,

      

6.375%, due 01/24/232

      250,000         152,125   

Majapahit Holding BV,

      

7.250%, due 06/28/171

      100,000         109,158   

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Corporate bonds — (continued)

      

Indonesia — (concluded)

      

MPM Global Pte Ltd.,

      

6.750%, due 09/19/192

    $ 200,000       $ 186,000   

Pelabuhan Indonesia II PT,

      

4.250%, due 05/05/251

      550,000         513,563   

Pertamina Persero PT,

      

4.300%, due 05/20/231

      200,000         191,920   

5.625%, due 05/20/431

      200,000         176,253   

6.000%, due 05/03/421

      1,700,000         1,572,500   

6.500%, due 05/27/412

      200,000         197,500   

Theta Capital Pte Ltd.,

      

6.125%, due 11/14/202

      250,000         250,331   
     

 

 

  
        3,349,350   
     

 

 

  

Kazakhstan: 0.99%

      

Development Bank of Kazakhstan JSC,

      

5.500%, due 12/20/151

      264,000         269,280   

Kazakhstan Temir Zholy Finance BV,

      

6.950%, due 07/10/421

      500,000         452,500   

KazMunayGas National Co. JSC,

      

4.400%, due 04/30/232

      620,000         561,100   

5.750%, due 04/30/431

      280,000         222,250   

9.125%, due 07/02/182

      500,000         565,625   
     

 

 

  
        2,070,755   
     

 

 

  

Malaysia: 0.64%

      

Malayan Banking Bhd,

      

3.250%, due 09/20/222,3

      800,000         805,428   

Petronas Capital Ltd.,

      

3.500%, due 03/18/251

      530,000         520,460   
     

 

 

  
        1,325,888   
     

 

 

  

Mexico: 2.40%

      

Cemex SAB de CV,

      

5.700%, due 01/11/252

      200,000         193,500   

Comision Federal de Electricidad,

      

4.875%, due 01/15/242

      850,000         884,000   

Elementia SAB de CV,

      

5.500%, due 01/15/251

      250,000         252,500   

Empresas ICA SAB de CV,

      

8.875%, due 05/29/242

      290,000         189,950   

Petroleos Mexicanos,

      

5.625%, due 01/23/461

      150,000         140,152   

5.625%, due 01/23/462

      2,200,000         2,055,566   

6.625%, due 06/15/35

      650,000         695,500   

7.190%, due 09/12/24

    MXN 10,000,000         597,741   
     

 

 

  
        5,008,909   
     

 

 

  

Morocco: 0.39%

      

OCP SA,

      

4.500%, due 10/22/251

    $ 350,000         335,563   

6.875%, due 04/25/441

      250,000         261,562   

6.875%, due 04/25/442

      200,000         209,250   
     

 

 

  
        806,375   
     

 

 

  

Nigeria: 0.40%

      

FBN Finance Co. BV,

      

8.000%, due 07/23/211,3

      945,000         824,513   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Corporate bonds — (continued)

      

Panama: 0.17%

      

Avianca Holdings SA,

      

8.375%, due 05/10/202

    $ 350,000       $ 351,313   
     

 

 

  

Peru: 0.50%

      

Fondo MIVIVIENDA SA,

      

3.500%, due 01/31/231

      450,000         430,312   

Intercorp Peru Ltd.,

      

5.875%, due 02/12/251

      215,000         214,463   

Lima Metro Line 2 Finance Ltd.,

      

5.875%, due 07/05/341

      250,000         253,750   

Union Andina de Cementos SAA,

      

5.875%, due 10/30/211

      150,000         153,000   
     

 

 

  
        1,051,525   
     

 

 

  

Philippines: 1.03%

      

Power Sector Assets & Liabilities Management Corp.,

      

9.625%, due 05/15/28

      1,400,000         2,142,000   
     

 

 

  

Russia: 2.56%

      

RSHB Capital SA for OJSC Russian Agricultural Bank,

      

5.298%, due 12/27/172

      1,000,000         991,250   

6.000%, due 06/03/212,3

      550,000         499,813   

8.700%, due 03/17/16

    RUB 10,000,000         158,163   

Sberbank of Russia,

      

4.950%, due 02/07/172

    $ 700,000         708,750   

5.717%, due 06/16/21

      500,000         481,250   

5.717%, due 06/16/212

      130,000         125,125   

VEB Finance Ltd.,

      

5.375%, due 02/13/172

      1,590,000         1,611,862   

6.025%, due 07/05/221

      200,000         182,750   

6.902%, due 07/09/201

      200,000         196,000   

6.902%, due 07/09/202

      400,000         392,000   
     

 

 

  
        5,346,963   
     

 

 

  

Singapore: 0.09%

      

Pratama Agung Pte Ltd.,

      

6.250%, due 02/24/20

      200,000         193,647   
     

 

 

  

South Africa: 1.42%

      

Eskom Holdings SOC Ltd.,

      

6.750%, due 08/06/232

      500,000         501,875   

7.125%, due 02/11/251

      570,000         575,985   

Transnet SOC Ltd.,

      

9.500%, due 05/13/211

    ZAR 12,660,000         984,688   

10.000%, due 03/30/29

      12,000,000         890,762   
     

 

 

  
        2,953,310   
     

 

 

  

Sri Lanka: 1.03%

      

Bank of Ceylon,

      

6.875%, due 05/03/172

    $ 300,000         311,250   

National Savings Bank,

      

8.875%, due 09/18/181

      900,000         977,912   

8.875%, due 09/18/182

      800,000         869,256   
     

 

 

  
        2,158,418   
     

 

 

  

Thailand: 0.10%

      

Krung Thai Bank PCL,

      

5.200%, due 12/26/242,3

      200,000         205,573   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Corporate bonds — (concluded)

      

Trinidad and Tobago: 0.09%

      

Petroleum Co. of Trinidad & Tobago Ltd.,

      

9.750%, due 08/14/192

    $ 165,000       $ 189,338   
     

 

 

  

Turkey: 1.68%

      

Export Credit Bank of Turkey,

      

5.375%, due 11/04/161

      700,000         722,750   

5.875%, due 04/24/191

      400,000         422,500   

Turkiye Halk Bankasi AS,

      

3.875%, due 02/05/202

      300,000         288,000   

4.875%, due 07/19/171

      800,000         822,000   

Turkiye Vakiflar Bankasi TAO,

      

3.750%, due 04/15/182

      850,000         840,437   

5.750%, due 04/24/172

      400,000         416,000   
     

 

 

  
        3,511,687   
     

 

 

  

United Arab Emirates: 0.49%

      

IPIC GMTN Ltd.,

      

5.500%, due 03/01/222

      900,000         1,029,375   
     

 

 

  

Venezuela: 1.51%

      

Petroleos de Venezuela SA,

      

5.250%, due 04/12/172

      530,000         255,619   

6.000%, due 05/16/242

      1,700,000         564,825   

6.000%, due 11/15/262

      2,160,000         698,760   

8.500%, due 11/02/171

      454,000         307,585   

8.500%, due 11/02/172

      610,000         413,275   

9.000%, due 11/17/212

      1,805,000         719,744   

9.750%, due 05/17/352

      495,000         198,000   
     

 

 

  
        3,157,808   
     

 

 

  

Total corporate bonds
(cost $55,527,402)

         52,167,041   
     

 

 

  

Non-US government obligations: 65.26%

      

Albania: 0.95%

      

Republic of Albania,

      

7.500%, due 11/04/15

    EUR 1,800,000         1,990,553   
     

 

 

  

Angola: 0.12%

      

Republic of Angola Via Northern Lights III BV,

      

7.000%, due 08/16/192

    $ 250,000         247,938   
     

 

 

  

Argentina: 0.52%

      

Republic of Argentina,

      

0.000%, due 12/15/354

      501,737         41,142   

0.000%, due 12/15/354

      520,000         43,160   

7.000%, due 10/03/15

      165,000         163,955   

Series 1,

      

8.750%, due 06/02/175

      872,897         835,799   
     

 

 

  
        1,084,056   
     

 

 

  

Armenia: 0.09%

      

Republic of Armenia,

      

6.000%, due 09/30/202

      200,000         196,750   
     

 

 

  

Belarus: 1.17%

      

Republic of Belarus,

      

8.750%, due 08/03/152

      2,300,000         2,297,738   

8.950%, due 01/26/182

      150,000         150,562   
     

 

 

  
        2,448,300   
     

 

 

  

Bolivia: 0.10%

      

Plurinational State of Bolivia,

      

5.950%, due 08/22/232

      200,000         209,000   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Brazil: 6.36%

      

Federative Republic of Brazil,

      

0.000%, due 07/01/166

    BRL 12,661,000       $ 3,280,775   

4.250%, due 01/07/25

    $ 550,000         518,375   

5.000%, due 01/27/45

      1,040,000         871,000   

6.000%, due 08/15/507

    BRL 1,000,000         768,764   

Notas do Tesouro Nacional,

      

Series B,

      

6.000%, due 05/15/457

      1,600,000         1,200,394   

Series F,

      

10.000%, due 01/01/17

      12,895,000         3,610,331   

10.000%, due 01/01/19

      2,140,000         580,182   

10.000%, due 01/01/21

      3,928,000         1,029,151   

10.000%, due 01/01/25

      1,230,000         305,080   

State of Minas Gerais,

      

5.333%, due 02/15/281

    $ 1,200,000         1,113,000   
     

 

 

  
        13,277,052   
     

 

 

  

Colombia: 3.07%

      

Republic of Colombia,

      

2.625%, due 03/15/23

    $ 580,000         532,150   

4.375%, due 07/12/21

      350,000         365,313   

4.375%, due 03/21/23

    COP 395,000,000         121,877   

6.000%, due 04/28/28

      1,844,000,000         547,847   

6.125%, due 01/18/41

    $ 150,000         162,000   

7.375%, due 09/18/37

      575,000         707,250   

8.125%, due 05/21/24

      250,000         319,687   

9.850%, due 06/28/27

    COP 1,106,000,000         470,365   

12.000%, due 10/22/15

      2,130,000,000         749,834   

Series B,

      

6.000%, due 04/28/28

      8,202,000,000         2,436,791   
     

 

 

  
        6,413,114   
     

 

 

  

Costa Rica: 1.00%

      

Banco Nacional de Costa Rica,

      

4.875%, due 11/01/182

    $ 400,000         407,000   

6.250%, due 11/01/231

      500,000         502,500   

Republic of Costa Rica,

      

7.000%, due 04/04/441

      200,000         190,750   

7.000%, due 04/04/442

      675,000         643,781   

7.158%, due 03/12/451

      350,000         334,250   
     

 

 

  
        2,078,281   
     

 

 

  

Cote d’Ivoire: 0.60%

      

Republic of Cote d’Ivoire,

      

5.750%, due 12/31/322,8

      1,000,000         922,500   

6.375%, due 03/03/281

      350,000         336,000   
     

 

 

  
        1,258,500   
     

 

 

  

Dominican Republic: 0.78%

      

Republic of Dominica,

      

5.500%, due 01/27/251

      485,000         486,819   

5.500%, due 01/27/251

      550,000         552,062   

7.500%, due 05/06/211

      200,000         223,750   

9.040%, due 01/23/182

      327,893         354,945   
     

 

 

  
        1,617,576   
     

 

 

  

Ecuador: 0.12%

      

Republic of Ecuador,

      

7.950%, due 06/20/241

      300,000         247,875   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

El Salvador: 0.46%

      

Republic of El Salvador,

      

6.375%, due 01/18/272

    $ 315,000       $ 300,037   

7.750%, due 01/24/232

      320,000         343,200   

8.250%, due 04/10/322

      300,000         323,250   
     

 

 

  
        966,487   
     

 

 

  

Ethiopia: 0.12%

      

Republic of Ethiopia,

      

6.625%, due 12/11/241

      250,000         246,875   
     

 

 

  

Gabon: 0.59%

      

Gabonese Republic,

      

6.375%, due 12/12/241

      550,000         512,875   

6.375%, due 12/12/242

      440,000         410,300   

6.950%, due 06/16/251

      205,000         198,081   

8.200%, due 12/12/172

      100,000         105,875   
     

 

 

  
        1,227,131   
     

 

 

  

Georgia: 0.10%

      

Republic of Georgia,

      

6.875%, due 04/12/212

      200,000         211,000   
     

 

 

  

Ghana: 0.35%

      

Republic of Ghana,

      

7.875%, due 08/07/232

      200,000         185,750   

8.500%, due 10/04/172

      515,000         536,887   
     

 

 

  
        722,637   
     

 

 

  

Guatemala: 0.11%

      

Republic of Guatemala,

      

5.750%, due 06/06/222

      210,000         224,700   
     

 

 

  

Honduras: 0.11%

      

Republic of Honduras,

      

8.750%, due 12/16/201

      200,000         227,750   
     

 

 

  

Hungary: 2.40%

      

Government of Hungary,

      

5.375%, due 02/21/23

      550,000         595,578   

5.500%, due 06/24/25

    HUF 181,850,000         742,863   

5.750%, due 11/22/23

    $ 1,120,000         1,243,760   

6.500%, due 06/24/19

    HUF 90,000,000         367,222   

6.750%, due 02/24/17

      70,000,000         270,300   

7.500%, due 11/12/20

      150,000,000         653,378   

Magyar Fejlesztesi Bank Rt,

      

5.875%, due 05/31/16

    EUR 1,000,000         1,141,823   
     

 

 

  
        5,014,924   
     

 

 

  

Indonesia: 6.55%

      

Indonesia Treasury Bond,

      

8.375%, due 03/15/34

    IDR 7,610,000,000         537,243   

9.000%, due 03/15/29

      56,850,000,000         4,274,435   

9.500%, due 07/15/23

      29,400,000,000         2,259,198   

11.750%, due 08/15/23

      4,600,000,000         397,006   

12.000%, due 09/15/26

      12,215,000,000         1,106,145   

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Indonesia — (concluded)

      

Republic of Indonesia,

      

3.375%, due 04/15/232

    $ 300,000       $ 284,625   

3.750%, due 04/25/222

      430,000         425,700   

4.875%, due 05/05/211

      1,080,000         1,142,100   

5.875%, due 03/13/202

      1,000,000         1,111,250   

6.625%, due 02/17/372

      920,000         1,035,000   

7.750%, due 01/17/382

      232,000         294,060   

8.500%, due 10/12/352

      400,000         537,000   

11.625%, due 03/04/192

      200,000         261,500   
     

 

 

  
        13,665,262   
     

 

 

  

Iraq: 0.19%

      

Republic of Iraq,

      

5.800%, due 01/15/282

      500,000         396,750   
     

 

 

  

Jamaica: 0.10%

      

People’s Republic of Jamaica,

      

6.750%, due 04/28/28

      200,000         200,000   
     

 

 

  

Kazakhstan: 0.29%

      

Republic of Kazakhstan,

      

3.875%, due 10/14/241

      200,000         185,000   

4.875%, due 10/14/441

      250,000         206,250   

5.125%, due 07/21/251

      210,000         208,163   
     

 

 

  
        599,413   
     

 

 

  

Kenya: 0.65%

      

Republic of Kenya,

      

5.875%, due 06/24/191

      900,000         906,750   

6.875%, due 06/24/242

      450,000         442,687   
     

 

 

  
        1,349,437   
     

 

 

  

Lebanon: 0.14%

      

Lebanese Republic,

      

6.200%, due 02/26/25

      165,000         166,443   

6.650%, due 02/26/302

      125,000         127,344   
     

 

 

  
        293,787   
     

 

 

  

Lithuania: 0.17%

      

Republic of Lithuania,

      

6.625%, due 02/01/221

      300,000         359,979   
     

 

 

  

Malaysia: 4.33%

      

1MDB Global Investments Ltd.,

      

4.400%, due 03/09/232

      400,000         336,000   

Government of Malaysia,

      

3.580%, due 09/28/18

    MYR 2,600,000         680,901   

4.012%, due 09/15/17

      9,200,000         2,441,482   

4.048%, due 09/30/21

      2,650,000         694,708   

4.181%, due 07/15/24

      5,500,000         1,438,148   

4.262%, due 09/15/16

      3,100,000         820,359   

4.498%, due 04/15/30

      9,810,000         2,616,814   
     

 

 

  
        9,028,412   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Mexico: 3.63%

      

Mexican Bonos,

      

Series M,

      

7.750%, due 11/13/42

    MXN 4,800,000       $ 337,193   

7.500%, due 06/03/27

      7,850,000         537,335   

10.000%, due 12/05/24

      4,480,000         356,492   

10.000%, due 11/20/36

      2,000,000         172,116   

Mexican Udibonos,

      

Series S,

      

2.500%, due 12/10/207

      16,915,280         1,064,681   

Series S,

      

4.000%, due 11/15/407

      26,694,426         1,795,350   

United Mexican States,

      

4.600%, due 01/23/46

    $ 200,000         188,750   

4.750%, due 03/08/44

      1,100,000         1,069,750   

5.550%, due 01/21/45

      800,000         865,000   

6.050%, due 01/11/40

      1,030,000         1,192,225   
     

 

 

  
        7,578,892   
     

 

 

  

Mongolia: 0.70%

      

Development Bank of Mongolia LLC,

      

5.750%, due 03/21/172

      1,300,000         1,265,875   

Mongolia Government International Bond,

      

5.125%, due 12/05/221

      230,000         197,800   
     

 

 

  
        1,463,675   
     

 

 

  

Montenegro: 0.53%

      

Republic of Montenegro,

      

7.875%, due 09/14/15

    EUR 1,000,000         1,098,651   
     

 

 

  

Nigeria: 0.21%

      

Republic of Nigeria,

      

6.375%, due 07/12/232

    $ 440,000         430,650   
     

 

 

  

Pakistan: 0.30%

      

Islamic Republic of Pakistan,

      

6.875%, due 06/01/172

      200,000         208,000   

7.125%, due 03/31/162

      200,000         204,750   

8.250%, due 04/15/242

      200,000         214,025   
     

 

 

  
        626,775   
     

 

 

  

Panama: 0.13%

      

Republic of Panama,

      

4.300%, due 04/29/53

      300,000         267,000   
     

 

 

  

Paraguay: 0.27%

      

Republic of Paraguay,

      

4.625%, due 01/25/231

      350,000         354,375   

6.100%, due 08/11/441

      200,000         206,000   
     

 

 

  
        560,375   
     

 

 

  

Peru: 2.15%

      

Republic of Peru,

      

5.625%, due 11/18/50

      600,000         672,750   

5.700%, due 08/12/241

    PEN 4,800,000         1,413,268   

6.900%, due 08/12/372

      1,250,000         379,991   

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

    Face
amount		      Value  

Bonds — (continued)

      

Non-US government obligations — (continued)

      

Peru — (concluded)

      

Republic of Peru — (concluded)

      

6.950%, due 08/12/311

    PEN 2,070,000       $ 638,190   

6.950%, due 08/12/312

      2,860,000         881,751   

8.200%, due 08/12/26

      1,442,000         500,296   
     

 

 

  
        4,486,246   
     

 

 

  

Philippines: 0.38%

      

Republic of the Philippines,

      

3.900%, due 11/26/22

    PHP 5,000,000         107,686   

3.950%, due 01/20/40

    $ 200,000         205,000   

4.950%, due 01/15/21

    PHP 10,000,000         228,162   

6.250%, due 01/14/36

      10,000,000         246,168   
     

 

 

  
        787,016   
     

 

 

  

Poland: 4.60%

      

Republic of Poland,

      

3.250%, due 07/25/25

    PLN 5,700,000         1,549,718   

4.750%, due 04/25/17

      16,500,000         4,596,257   

5.000%, due 04/25/16

      5,300,000         1,438,648   

5.000%, due 03/23/22

    $ 200,000         223,686   

5.500%, due 10/25/19

    PLN 6,000,000         1,796,548   
     

 

 

  
        9,604,857   
     

 

 

  

Romania: 1.77%

      

Government of Romania,

      

4.375%, due 08/22/231

    $ 450,000         468,563   

4.750%, due 02/24/25

    RON 3,000,000         802,028   

5.750%, due 01/27/16

      3,150,000         801,235   

5.900%, due 07/26/17

      5,200,000         1,396,322   

6.125%, due 01/22/441

    $ 200,000         229,756   
     

 

 

  
        3,697,904   
     

 

 

  

Russia: 3.07%

      

Russian Federation,

      

3.500%, due 01/16/192

      1,000,000         988,750   

4.875%, due 09/16/232

      600,000         584,250   

5.000%, due 04/29/202

      500,000         510,000   

5.625%, due 04/04/421

      1,000,000         920,000   

5.625%, due 04/04/422

      200,000         184,000   

7.000%, due 01/25/23

    RUB 25,100,000         334,889   

7.050%, due 01/19/28

      55,000,000         685,898   

7.600%, due 04/14/21

      87,500,000         1,243,216   

8.150%, due 02/03/27

      69,500,000         960,821   
     

 

 

  
     6,411,824   
     

 

 

  

Senegal: 0.11%

      

Republic of Senegal,

      

8.750%, due 05/13/212

    $ 200,000         223,250   
     

 

 

  

South Africa: 3.59%

      

Republic of South Africa,

      

5.500%, due 03/09/20

      100,000         108,750   

5.875%, due 09/16/25

      1,150,000         1,278,225   

6.250%, due 03/31/36

    ZAR 13,900,000         836,560   

7.000%, due 02/28/31

      17,000,000         1,155,732   

7.750%, due 02/28/23

      37,600,000         2,907,920   

10.500%, due 12/21/26

      11,050,000         1,017,060   

13.500%, due 09/15/16

      2,266,666         191,265   
     

 

 

  
     7,495,512   
     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

   Face
amount		     Value  

Bonds — (continued)

    

Non-US government obligations — (continued)

    

Sri Lanka: 1.10%

    

Republic of Sri Lanka,

    

5.875%, due 07/25/222

   $ 700,000      $ 694,750   

6.250%, due 10/04/201

     550,000        566,500   

6.250%, due 10/04/202

     1,000,000        1,030,000   
   

 

 

  
    2,291,250   
   

 

 

  

Thailand: 3.79%

    

Government of Thailand,

    

1.200%, due 07/14/212,7

   THB     112,934,962        3,082,067   

3.125%, due 12/11/15

     37,450,000        1,068,681   

3.775%, due 06/25/32

     10,000,000        291,926   

3.850%, due 12/12/25

     28,200,000        872,860   

3.875%, due 06/13/19

     52,100,000        1,581,695   

4.675%, due 06/29/44

     19,150,000        628,853   

4.875%, due 06/22/29

     11,650,000        389,926   
   

 

 

  
    7,916,008   
   

 

 

  

Turkey: 5.32%

    

Republic of Turkey,

    

5.125%, due 03/25/22

   $ 1,450,000        1,510,175   

5.625%, due 03/30/21

     1,000,000        1,072,000   

5.750%, due 03/22/24

     500,000        537,000   

6.250%, due 09/26/22

     230,000        254,265   

6.750%, due 04/03/18

     250,000        275,125   

6.750%, due 05/30/40

     200,000        228,100   

6.875%, due 03/17/36

     250,000        287,250   

7.100%, due 03/08/23

   TRY 2,300,000        727,491   

7.500%, due 11/07/19

   $ 200,000        229,600   

8.000%, due 02/14/34

     350,000        447,300   

8.500%, due 09/14/22

   TRY 1,500,000        515,319   

9.000%, due 07/24/24

     1,350,000        475,235   

10.500%, due 01/15/20

     12,100,000        4,538,974   
   

 

 

  
    11,097,834   
   

 

 

  

Ukraine: 0.37%

    

Financing of Infrastructural Projects State Enterprise,

    

8.375%, due 11/03/171

   $ 1,150,000        655,504   

Ukraine Government International Bond,

    

9.250%, due 07/24/172

     200,000        117,500   
   

 

 

  
      773,004   
   

 

 

  

Uruguay: 0.09%

    

Republic of Uruguay,

    

4.500%, due 08/14/24

     116,000        122,815   

6.875%, due 09/28/25

     60,000        73,688   
   

 

 

  
      196,503   
   

 

 

  

Venezuela: 1.30%

    

Republic of Venezuela,

    

7.650%, due 04/21/25

     2,625,000        938,437   

7.750%, due 10/13/192

     365,000        137,788   

8.250%, due 10/13/242

     2,000,000        730,000   

9.250%, due 05/07/282

     712,000        267,000   

9.375%, due 01/13/34

     1,700,000        646,000   
   

 

 

  
      2,719,225   
   

 

 

  

Vietnam: 0.15%

    

Socialist Republic of Vietnam,

    

4.800%, due 11/19/241

     200,000        199,941   

6.750%, due 01/29/202

     100,000        111,000   
   

 

 

  
      310,941   
   

 

 

  

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

 

   Face
amount		     Value  

Bonds — (concluded)

    

Non-US government obligations — (concluded)

    

Zambia: 0.16%

    

Republic of Zambia,

    

5.375%, due 09/20/221

   $ 400,000        337,600   
   

 

 

  

Total Non-US government obligations
(cost $168,300,957)

       136,178,531   
   

 

 

  

Structured note: 0.85%

    

India: 0.85%

    

Standard Chartered Bank,
7.160%, due 05/20/23
(linked to Republic of India,
7.160%, due 05/20/23)
(cost $1,789,427)

     1,843,320        1,775,366   
   

 

 

  

Supranational bond: 0.07%

    

European Investment Bank,

    

7.200%, due 07/09/191 (cost $151,178)

   IDR   2,090,000,000        144,643   
   

 

 

  

Total bonds
(cost $225,768,964)

       190,265,581   
   

 

 

  
    Shares        

Short-term investment: 6.75%

    

Investment company: 6.75%

    

UBS Cash Management Prime Relationship Fund9
(cost $14,083,121)

     14,083,121        14,083,121   
   

 

 

  

Total investments: 97.93%
(cost $239,852,085)

       204,348,702   

Cash and other assets, less liabilities — 2.07%

       4,317,306   
   

 

 

  

Net assets — 100.00%

     $ 208,666,008   
   

 

 

  

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

    $ 197,119   

Gross unrealized depreciation

      (35,700,502 ) 
  

 

 

  

Net unrealized depreciation of investments

    $ (35,503,383 ) 
  

 

 

  

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 — July 31, 2015 (unaudited)

 

Forward foreign currency contracts

 

Counterparty

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

BB

    IDR     9,853,633,042       USD     728,334         09/16/15      $ 6,181   

BB

    INR     118,385,000       USD     1,841,853         09/16/15        11,025   

BB

    NGN     9,525,000       USD     44,929         09/16/15        (2,300 ) 

BB

    PLN     2,120,000       USD     575,003         09/16/15        13,723   

BB

    RON     1,347,000       USD     337,941         09/16/15        2,486   

BB

    TRY     95,000       USD     34,222         09/16/15        373   

BB

    USD     954,596       IDR     12,930,000,000         09/16/15        (6,982 ) 

BB

    USD     520,095       NGN     110,000,000         09/16/15        25,331   

BB

    USD     1,763,455       PHP     79,990,300         09/16/15        (19,061 ) 

BB

    USD     1,849,806       RUB     103,467,999         09/16/15        (194,028 ) 

BB

    USD     198,254       TRY     545,000         09/16/15        (4,068 ) 

CSI

    BRL     7,132,850       USD     2,232,102         09/16/15        181,600   

CSI

    CNY     3,320,000       USD     539,653         09/16/15        6,644   

CSI

    INR     9,120,000       USD     141,714         09/16/15        673   

CSI

    MXN     8,215,000       USD     526,771         09/17/15        18,655   

CSI

    USD     32,318       BRL     105,000         09/16/15        (2,133 ) 

CSI

    USD     151,047       CLP     95,469,400         09/16/15        (10,041 ) 

CSI

    USD     540,717       CNY     3,320,000         09/16/15        (7,707 ) 

CSI

    USD     1,718,713       MYR     6,455,487         09/17/15        (37,006 ) 

CSI

    USD     62,170       PEN     200,000         09/16/15        74   

CSI

    USD     2,434,412       ZAR     30,575,000         09/16/15        (36,262 ) 

DB

    BRL     700,000       USD     214,428         09/16/15        13,197   

DB

    PEN     6,637,000       USD     2,073,415         09/16/15        7,851   

DB

    USD     2,451,040       COP     6,338,390,000         09/16/15        (255,181 ) 

DB

    USD     70,938       HUF     19,800,000         09/16/15        (203 ) 

DB

    USD     181,286       INR     11,615,000         09/16/15        (1,660 ) 

DB

    USD     6,166,312       MXN     95,916,000         09/17/15        (233,693 ) 

DB

    USD     100,171       RUB     5,665,000         09/16/15        (9,516 ) 

GSI

    BRL     9,100,000       USD     2,837,543         09/16/15        221,539   

GSI

    HUF     52,750,000       USD     185,870         09/16/15        (2,577 ) 

GSI

    PLN     430,000       USD     117,413         09/16/15        3,568   

GSI

    RUB     4,315,000       USD     76,045         09/16/15        6,993   

GSI

    USD     3,688,823       BRL     12,470,000         09/16/15        (104,035 ) 

GSI

    USD     3,101,768       HUF     858,817,499         09/16/15        (33,671 ) 

GSI

    USD     155,672       IDR     2,105,000,000         09/16/15        (1,401 ) 

GSI

    USD     22,708       MXN     350,000         09/17/15        (1,060 ) 

GSI

    USD     1,351,424       NGN     283,485,000         09/16/15        54,211   

GSI

    USD     1,868,856       PLN     6,930,000         09/16/15        (34,106 ) 

GSI

    USD     3,521,337       TRY     9,914,324         09/16/15        11,183   

GSI

    ZAR     2,275,000       USD     183,506         09/16/15        5,067   

JPMCB

    EUR     4,010,000       USD     4,437,514         10/16/15        28,869   

Net unrealized depreciation on forward foreign currency contracts

  

      $ (377,448 ) 
              

 

 

  

Futures contracts

 

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

US Treasury futures buy contracts:

        

US Long Bond, 15 contracts (USD)

     September 2015      $ 2,321,986      $ 2,339,062      $ 17,076   

US Ultra Bond, 6 contracts (USD)

     September 2015        933,790        957,187        23,397   

5 Year US Treasury Notes, 16 contracts (USD)

     September 2015        1,899,524        1,917,501        17,977   

US Treasury futures sell contracts:

        

10 Year US Treasury Notes, 6 contracts (USD)

     September 2015        (761,898 )      (764,625 )      (2,727 ) 

Net unrealized appreciation on futures contracts

         $ 55,723   
       

 

 

  

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

Currency swap agreements10

 

   

Notional Amount

                                

Counterparty

  

Pay contracts

  

Receive contracts

  

Termination
date

   Pay
rate11		    

Receive

rate11

   Upfront
payments		     Value     Unrealized
appreciation		  

BB

   PHP   85,653,500   USD   2,085,803   12/18/15     1.300%      6 month LIBOR   $     —      $ 223,322      $ 223,322   
               

 

 

    

 

 

    

 

 

  

Interest rate swap agreements

 

Counterparty

   Notional
amount		   Termination
date		  

Payments

made by

the Fund11

  

Payments received by

the Fund11

   Upfront
payments		     Value     Unrealized
appreciation/
(depreciation)		  

CITI

   MYR   1,950,000   08/24/15   3 month KLIBOR   3.505%   $ —      $ (233 )    $ (233 ) 

DB

   MYR   7,650,000   08/24/15   3 month KLIBOR   3.500     —        (935 )      (935 ) 

DB

   ZAR   12,700,000   05/31/23   3 month JIBAR   7.480     —        (33,302 )      (33,302 ) 

MLI

   MXN   7,200,000   11/16/28   28 day MXIBTIIE   8.830     —        93,562        93,562   

MLI

   MXN   7,000,000   11/21/28   28 day MXIBTIIE   8.610     —        81,891        81,891   

MLI

   ZAR   35,000,000   06/04/18   3 month JIBAR   6.400     —        (61,164 )      (61,164 ) 
           

 

 

    

 

 

    

 

 

  
            $     —      $ 79,819      $ 79,819   
           

 

 

    

 

 

    

 

 

  

Credit default swaps on credit indices-buy protection12

 

Counterparty

   

Referenced index13

    Notional amount      Termination
date		      Payments
made
by the
Fund11		     Upfront
payments
received		      Value     Unrealized
appreciation		  

BB

    CDX.EM Series 21 Index    USD     1,700,000         06/20/19         5.000 %    $ 172,977       $ (51,900 )    $ 121,077   

DB

    CDX.EM Series 21 Index    USD 3,050,000         06/20/19         5.000        308,877         (93,115 )      215,762   
             

 

 

     

 

 

    

 

 

  
              $ 481,854       $ (145,015 )    $ 336,839   
             

 

 

     

 

 

    

 

 

  

Credit default swaps on sovereign issues-buy protection12

 

Counterparty

   

Referenced obligation13

    Notional amount      Termination
date		      Payments
made
by the
Fund11		     Upfront
payments
made		     Value      Unrealized
appreciation/
(depreciation)		  

DB

    Federation of Russia bond,
2.250%, due 03/31/30		    USD     1,000,000         03/20/16         1.000 %    $ (16,785 )    $ 6,137       $     (10,648 ) 

DB

    Republic of Colombia bond,
10.375%, due 01/28/33		    USD 680,000         12/20/24         1.000        (37,843 )      68,943         31,100   
             

 

 

    

 

 

     

 

 

  
              $ (54,628 )    $ 75,080       $ 20,452   
             

 

 

    

 

 

     

 

 

  

Credit default swaps on sovereign issues-sell protection14

 

Counterparty

   

Referenced obligation13

    Notional amount      Termination
date		      Payments
received
by the
Fund11		     Upfront
payments
received		      Value     Unrealized
depreciation		     Credit
spread15		  

BB

    Federal Republic of Brazil bond,
12.250%, due 03/06/30		      USD     180,000         06/20/22         1.000 %    $ 14,775       $ (22,250 )    $ (7,475 )      3.121 % 

BB

    Federation of Russia bond,
2.250%, due 03/31/30		      USD  2,900,000         12/20/22         1.000        277,973         (444,433 )      (166,460 )      3.552   

DB

    Federal Republic of Brazil bond,
12.250%, due 03/06/30		      USD     800,000         06/20/22         1.000        64,908         (98,891 )      (33,983 )      3.121   

DB

    United Mexican States bond,
7.500%, due 04/08/33		      USD     680,000         12/20/24         1.000        22,977         (43,824 )      (20,847 )      1.820   
             

 

 

     

 

 

    

 

 

    
              $ 380,633       $ (609,398 )    $ (228,765 )   
             

 

 

     

 

 

    

 

 

    

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

The following is a summary of the fair valuations according to the inputs used as of July 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

    $ —      $ 52,167,041      $ —       $ 52,167,041   

Non-US government obligations

      —        136,178,531        —         136,178,531   

Structured note

      —        1,775,366        —         1,775,366   

Supranational bond

      —        144,643        —         144,643   

Short-term investment

      —        14,083,121        —         14,083,121   

Forward foreign currency contracts

      —        619,243        —         619,243   

Futures contracts

      58,450        —        —         58,450   

Swap agreements

      —        473,855        —         473,855   

Total

    $ 58,450      $ 205,441,800      $ —       $ 205,500,250   

    

                                  

Liabilities

                                  

Forward foreign currency contracts

    $ —      $ (996,691 )    $ —       $ (996,691 ) 

Futures contracts

      (2,727 )      —        —         (2,727 ) 

Swap agreements

      —        (850,047 )      —         (850,047 ) 

Total

    $ (2,727 )    $ (1,846,738 )    $     —       $ (1,849,465 ) 

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

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 July 31, 2015, the value of these securities amounted to $31,020,589 or 14.87% 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 July 31, 2015, the value of these securities amounted to $51,011,369 or 24.45% of net assets.

  3 

Variable or floating rate security — The interest rate shown is the current rate as of July 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 

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

  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 

Step bond — Coupon rate increases in increments to maturity. Rate disclosed is as of July 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
nine months
ended
07/31/15		      Sales
during the
nine months
ended
07/31/15		      Value
07/31/15		      Net income
earned from
affiliate for the
nine months
ended
07/31/15		  

UBS Cash Management Prime Relationship Fund

    $ 6,240,018       $ 45,978,676       $ 38,135,573       $ 14,083,121       $ 4,263   
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Global High Income Fund Inc.

Portfolio of investments — July 31, 2015 (unaudited)

 

  10 

Illiquid investment as of July 31, 2015.

  11 

Payments made or received are based on the notional amount.

  12 

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.

  13 

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.

  14 

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.

  15 

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

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
HUF    Hungarian Forint
IDR    Indonesian Rupiah
INR    Indian Rupee
MXN    Mexican Peso
MYR    Malaysian Ringgit
NGN    Nigeria Naira
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 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.

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 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.

For more information regarding the Fund’s other significant accounting policies, please refer to the Fund’s Semi-annual report to shareholders dated April 30, 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:

   September 29, 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:

   September 29, 2015

 

By:  

/s/ Thomas Disbrow

  Thomas Disbrow
  Vice President and Treasurer

Date:

   September 29, 2015