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, 2016

 

Date of reporting period: July 31, 2016

Item 1. Schedule of Investments.

 

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
July 31, 2016 (Unaudited)

 

Shares					Security Description		Value
Common Stocks-97.4%
Aerospace & Defense-1.8%
	15,000				B/E Aerospace, Inc.		$	717,525
	11,000				Orbital ATK, Inc.			958,320
	4,500				Raytheon Co.			627,885
								2,303,730
Air Freight & Logistics-1.0%
	8,000				FedEx Corp.			1,295,200
Airlines-1.4%
	32,500				Delta Air Lines, Inc.			1,259,375
	16,900				Japan Airlines Co., Ltd.			529,352
								1,788,727
Auto Components-0.9%
	8,100				Delphi Automotive PLC			549,342
	155,000				GKN PLC			593,660
								1,143,002
Banks-6.6%
	97,000				Banco Bilbao Vizcaya Argentaria SA			566,631
	85,100				Bangkok Bank PCL-NVDR			416,582
	78,000				Bank of America Corp.			1,130,220
	19,500				Citigroup, Inc.			854,295
	51,000				Citizens Financial Group, Inc.			1,138,830
	134,782				FinecoBank Banca Fineco SpA			800,144
	28,200				Hana Financial Group, Inc.			693,577
	76,000				Mitsubishi UFJ Financial Group, Inc.			388,808
	146,000				Regions Financial Corp.			1,338,820
	9,600				Sumitomo Mitsui Financial Group, Inc.			311,234
	17,900				Wells Fargo & Co.			858,663
								8,497,804
Beverages-1.2%
	12,000				Anheuser-Busch InBev NV-SP ADR			1,553,280
Biotechnology-0.4%
	6,700				Gilead Sciences, Inc.			532,449
Capital Markets-3.5%
	15,000				Amundi SA (a)			655,623
	37,500				Azimut Holding SpA			589,466
	53,000				Daiwa Securities Group, Inc.			304,022
	11,500				Evercore Partners, Inc.-Class A			582,705
	101,300				Fortress Investment Group LLC-Class A			502,448
	88,000				Mediobanca SpA			616,376
	42,500				OM Asset Management PLC			595,000
	10,000				State Street Corp.			657,800
								4,503,440
Chemicals-1.9%
	52,500				Clariant AG (b)			913,821
	11,500				Johnson Matthey PLC			498,596
	14,000				Symrise AG			986,703
								2,399,120
Commercial Services & Supplies-0.7%
	24,500				ISS A/S			944,864

 

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

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
July 31, 2016 (Unaudited)

 

Shares				Security Description		Value
Communications Equipment-3.3%
	22,300			Cisco Systems, Inc.			680,819
	14,000			Ei Towers SpA (b)			755,366
	20,200			Harris Corp.			1,749,724
	179,500			Nokia OYJ			1,031,501
							4,217,410
Computers & Peripherals-0.5%
	25,000			NetApp, Inc.			658,750
Construction & Engineering-3.1%
	36,203			Bouygues SA			1,070,968
	728,000			China Railway Construction Corp., Ltd.-Class H			872,654
	65,784			Ferrovial SA			1,361,714
	8,300			Vinci SA			629,979
							3,935,315
Consumer Finance-1.1%
	24,500			Discover Financial Services			1,392,580
Diversified Financial Services-0.6%
	86,789			Cerved Information Solutions SpA			727,726
Electric Utilities-1.5%
	56,470			Energisa SA			362,255
	12,500			NextEra Energy, Inc.			1,603,625
							1,965,880
Electronic Equipment, Instruments & Components-1.0%
	20,500			TE Connectivity, Ltd.			1,235,740
Energy Equipment & Services-0.5%
	7,500			Schlumberger, Ltd.			603,900
Food & Staples Retailing-1.9%
	20,000			CVS Health Corp.			1,854,400
	14,200			Seven & i Holdings Co., Ltd.			598,840
							2,453,240
Food Products-3.8%
	59,000			BRF SA-ADR			984,120
	19,700			Mondelez International, Inc.-Class A			866,406
	17,000			Nestle SA			1,362,876
	35,000			Nomad Foods, Ltd. (b)			309,750
	15,500			The Kraft Heinz Co.			1,339,045
							4,862,197
Health Care Equipment & Supplies-1.9%
	15,600			Medtronic PLC			1,367,028
	7,900			Zimmer Biomet Holdings, Inc.			1,036,006
							2,403,034
Health Care Providers & Services-2.7%
	7,800			HCA Holdings, Inc. (b)			601,614
	7,000			McKesson Corp.			1,361,920
	5,300			UnitedHealth Group, Inc.			758,960
	5,700			Universal Health Services, Inc.-Class B			738,321
							3,460,815

 

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

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
July 31, 2016 (Unaudited)

 

Shares				Security Description		Value
Hotels, Restaurants & Leisure-1.3%
	27,000			Aramark			967,950
	12,000			Darden Restaurants, Inc.			738,720
							1,706,670
Household Durables-2.3%
	22,500			Lennar Corp.-Class A			1,053,000
	17,100			Newell Brands, Inc.			897,066
	5,400			Whirlpool Corp.			1,038,744
							2,988,810
Household Products-1.2%
	51,365			Svenska Cellulosa AB SCA-B Shares			1,527,684
Independent Power and Renewables-2.2%
	29,220			Atlantica Yield PLC			588,783
	77,000			NRG Yield, Inc.-Class A			1,322,860
	37,000			Pattern Energy Group, Inc.			901,690
							2,813,333
Industrial Conglomerates-0.4%
	46,000			CK Hutchison Holdings, Ltd.			538,358
Insurance-1.2%
	6,300			Allianz SE			903,669
	10,000			Endurance Specialty Holdings, Ltd.			676,300
							1,579,969
Internet Software & Services-0.5%
	900			Alphabet, Inc.-Class C (b)			691,911
IT Services-0.5%
	26,000			CSRA, Inc.			699,920
Life Sciences Tools & Services-1.0%
	8,400			Thermo Fisher Scientific, Inc.			1,334,256
Machinery-1.7%
	693,650			CRRC Corp., Ltd.-Class H			635,679
	9,800			Snap-on, Inc.			1,540,266
							2,175,945
Media-2.6%
	17,500			CBS Corp.-Class B			913,850
	12,000			Comcast Corp.-Class A			807,000
	102,000			ITV PLC			264,584
	202,737			NOS SGPS SA			1,357,920
							3,343,354
Metals & Mining-0.5%
	31,000			Nippon Steel & Sumitomo Metal Corp.			592,444
Multi-Utilities-2.2%
	35,400			CMS Energy Corp.			1,599,372
	53,000			Veolia Environnement SA			1,176,785
							2,776,157
Multiline Retail-1.0%
	13,500			Dollar General Corp.			1,278,990

 

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

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
July 31, 2016 (Unaudited)

 

Shares				Security Description		Value
Oil, Gas & Consumable Fuels-6.0%
	11,600			Anadarko Petroleum Corp.			632,548
	34,500			BP PLC-SP ADR			1,186,800
	5,900			Chevron Corp.			604,632
	25,000			Enbridge, Inc.			1,028,250
	7,300			EOG Resources, Inc.			596,410
	6,600			Exxon Mobil Corp.			587,070
	58,500			Kinder Morgan, Inc.			1,189,305
	20,500			Marathon Petroleum Corp.			807,495
	22,000			SemGroup Corp.-Class A			637,120
	6,500			Tesoro Corp.			494,975
							7,764,605
Paper & Forest Products-1.3%
	73,000			Stora Enso OYJ-R Shares			662,706
	48,000			UPM-Kymmene OYJ			989,028
							1,651,734
Personal Products-0.7%
	20,000			Unilever NV			926,487
Pharmaceuticals-3.5%
	30,500			AstraZeneca PLC-SP ADR			1,041,270
	16,400			Novartis AG-SP ADR			1,365,464
	25,000			Pfizer, Inc.			922,250
	22,300			Teva Pharmaceutical Industries, Ltd.-SP ADR			1,193,050
							4,522,034
Real Estate Investment Trusts-5.9%
	13,423			American Tower Corp.			1,553,981
	22,500			Colony Starwood Homes			737,100
	1,350			LaSalle Logiport REIT (b)			1,411,721
	56,250			NorthStar Realty Finance Corp.			753,750
	466,666			Prologis Property Mexico SA de CV			734,221
	40,000			The Geo Group, Inc.			1,384,400
	85,220			Westfield Corp.			691,668
	11,000			Weyerhaeuser Co.			359,920
							7,626,761
Real Estate Management & Development-0.9%
	54,500			Mitsui Fudosan Co., Ltd.			1,203,663
Road & Rail-5.1%
	563,000			Asciano, Ltd.			3,906,287
	4,200			Canadian Pacific Railway, Ltd.			629,076
	475,000			Cosan Logistica SA (b)			668,024
	6,500			Kansas City Southern			624,715
	419,000			Rumo Logistica Operadora Multimodal SA (b)			790,859
							6,618,961
Semiconductors & Semiconductor Equipment-3.2%
	35,000			Applied Materials, Inc.			920,150
	8,200			Broadcom, Ltd.			1,328,236
	23,000			Intel Corp.			801,780
	34,500			SK Hynix, Inc.			1,059,501
							4,109,667
Software-0.6%
	12,500			Microsoft Corp.			708,500

 

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

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
July 31, 2016 (Unaudited)

 

Shares				Security Description		Value
Specialty Retail-3.2%
	12,600			Dick’s Sporting Goods, Inc.			646,254
	11,500			Foot Locker, Inc.			685,630
	11,300			The Home Depot, Inc.			1,562,112
	14,800			TJX Cos., Inc.			1,209,456
							4,103,452
Technology, Hardware, Storage & Peripherals-5.1%
	19,000			Apple, Inc.			1,979,990
	67,000			EMC Corp.			1,894,760
	1,250			Samsung Electronics Co., Ltd.			1,717,404
	19,500			Western Digital Corp.			926,445
							6,518,599
Textiles, Apparel & Luxury Goods-0.2%
	98,832			ANTA Sports Products, Ltd.			220,125
Tobacco-0.5%
	18,500			Swedish Match AB			674,752
Transportation Infrastructure-0.2%
	69,444			Enav SpA (a)(b)			276,237
Wireless Telecommunication Services-1.1%
	482,000			Vodafone Group PLC			1,464,306
				Total Common Stocks (Cost $118,921,319)			125,315,887
Equity-Linked Structured Notes-0.6%
Capital Markets-0.6%
	103,500			Intermediate Capital Group PLC-Morgan Stanley BV			784,879
				Total Equity-Linked Structured Notes (Cost $775,207)			784,879

 

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)(e)			477
				Total Convertible Bonds (Cost $55,510)			477
Short-Term Investments-2.7%
	3,430,000			State Street Eurodollar Time Deposit, 0.01%			3,430,000
				Total Short-Term Investments (Cost $3,430,000)			3,430,000
Total Investments (Cost $123,182,036) (f) -100.7%							129,531,243
Liabilities in Excess of Other Assets-(0.7)%							(845,440	)
TOTAL NET ASSETS 100.0%						$	128,685,803

 

Percentages are stated as a percent of net assets.

(a) Restricted under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. These securities have been determined to be liquid under guidelines established by the Board of Trustees. Liquid securities restricted under Rule 144A comprised 0.7% of the Fund’s net assets.

(b) Non-income producing security.

(c) Amount is less than 0.05%.

(d) Represents a zero-coupon bond.

 

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

Schedule of Portfolio Investments	Alpine Global Dynamic Dividend Fund
July 31, 2016 (Unaudited)

 

(e) Security fair valued in accordance with procedures approved by the Board of Trustees. These securities comprised 0.0% of the Fund’s net assets.

(f) See Note 2 for the cost of investments for federal tax purposes.

AB-Aktiebolag is the Swedish equivalent of a corporation.

ADR-American Depositary Receipt

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.

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

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, 2016 (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 long-term growth of capital as a secondary investment objective.

 

The Fund is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification Topic (“ASC”) 946 Financial Services - Investment Companies.

 

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 fair 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. 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 of the option, 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.

 

For securities valued by the Fund, valuation techniques are used 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 Board of Trustees adopted procedures which utilize fair value procedures when any assets for which reliable market quotations are not readily available or for which the Fund’s pricing service does not provide a valuation or provides a valuation that in the judgment of the Adviser does not represent fair value. The Board of Trustees has established a Valuation Committee which is responsible for (1) monitoring the valuation of Fund securities and other investments; and (2) as required, when the Board of Trustees is not in session, reviewing and approving the fair value of illiquid and other holdings after consideration of all relevant factors, which determinations are reported to the Board of Trustees.

 

Fair Value Measurement:

 

In accordance with FASB ASC, “Fair Value Measurement” (“ASC 820”), defines fair value as the value that the Fund would receive to sell an investment or pay to transfer a liability in a timely transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. ASC 820 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 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 ASC 820.

 

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, 2016:

	Valuation Inputs
Investments in Securities at Value*			Level 1			Level 2				Level 3				Total Value
Common Stocks
Aerospace & Defense		$	2,303,730			$	—			$	—			$	2,303,730
Air Freight & Logistics			1,295,200				—				—				1,295,200
Airlines			1,788,727				—				—				1,788,727
Auto Components			1,143,002				—				—				1,143,002
Banks			8,081,222				416,582				—				8,497,804
Beverages			1,553,280				—				—				1,553,280
Biotechnology			532,449				—				—				532,449
Capital Markets			4,503,440				—				—				4,503,440
Chemicals			2,399,120				—				—				2,399,120
Commercial Services & Supplies			944,864				—				—				944,864
Communications Equipment			4,217,410				—				—				4,217,410
Computers & Peripherals			658,750				—				—				658,750
Construction & Engineering			3,935,315				—				—				3,935,315
Consumer Finance			1,392,580				—				—				1,392,580
Diversified Financial Services			727,726				—				—				727,726
Electric Utilities			1,965,880				—				—				1,965,880
Electronic Equipment, Instruments & Components			1,235,740				—				—				1,235,740
Energy Equipment & Services			603,900				—				—				603,900
Food & Staples Retailing			2,453,240				—				—				2,453,240
Food Products			4,862,197				—				—				4,862,197
Health Care Equipment & Supplies			2,403,034				—				—				2,403,034
Health Care Providers & Services			3,460,815				—				—				3,460,815
Hotels, Restaurants & Leisure			1,706,670				—				—				1,706,670
Household Durables			2,988,810				—				—				2,988,810
Household Products			1,527,684				—				—				1,527,684
Independent Power and Renewables			2,813,333				—				—				2,813,333
Industrial Conglomerates			538,358				—				—				538,358
Insurance			1,579,969				—				—				1,579,969
Internet Software & Services			691,911				—				—				691,911
IT Services			699,920				—				—				699,920
Life Sciences Tools & Services			1,334,256				—				—				1,334,256
Machinery			2,175,945				—				—				2,175,945
Media			3,343,354				—				—				3,343,354
Metals & Mining			592,444				—				—				592,444
Multi-Utilities			2,776,157				—				—				2,776,157
Multiline Retail			1,278,990				—				—				1,278,990
Oil, Gas & Consumable Fuels			7,764,605				—				—				7,764,605
Paper & Forest Products			1,651,734				—				—				1,651,734
Personal Products			926,487				—				—				926,487
Pharmaceuticals			4,522,034				—				—				4,522,034
Real Estate Investment Trusts			7,626,761				—				—				7,626,761
Real Estate Management & Development			1,203,663				—				—				1,203,663
Road & Rail			6,618,961				—				—				6,618,961
Semiconductors & Semiconductor Equipment			4,109,667				—				—				4,109,667
Software			708,500				—				—				708,500
Specialty Retail			4,103,452				—				—				4,103,452
Technology, Hardware, Storage & Peripherals			6,518,599				—				—				6,518,599
Textiles, Apparel & Luxury Goods			220,125				—				—				220,125
Tobacco			674,752				—				—				674,752
Transportation Infrastructure			276,237				—				—				276,237
Wireless Telecommunication Services			1,464,306				—				—				1,464,306
Equity-Linked Structured Notes			—				784,879				—				784,879
Convertible Bonds			—				477				—				477
Short-Term Investments			—				3,430,000				—				3,430,000
Total		$	124,899,305			$	4,631,938			$	—			$	129,531,243

	Valuation Inputs
Other Financial Instruments		Level 1				Level 2				Level 3				Total Value
Assets
Forward Currency Contracts		$	—			$	144,755			$	—			$	144,755
Total		$	—			$	144,755			$	—			$	144,755

 

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

 

For the period ended July 31, 2016, 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 intends 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, 2016, 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
$	123,182,036			$	14,022,300			$	(7,673,093)			$	6,349,207

 

* 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 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 Fund does not isolate that

portion of its net realized and unrealized gains and losses on investments resulting from changes in foreign exchange rates from the impact arising from changes in market process. Such fluctuations are included with net realized and unrealized gain or loss from investments. Net realized foreign currency transaction gains and losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the differences between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency transactions gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates. 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) fair 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.

 

The Fund does not isolate that portion of their net realized and unrealized gains and losses on investments resulting from changes in foreign exchange rates from the impact arising from changes in market process. Such fluctuations are included with net realized and unrealized gain or loss from investments. Net realized foreign currency transaction gains and losses arise from sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the differences between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign currency transactions gains and losses arise from changes in the value of assets and liabilities, other than investments in securities, resulting from changes in the exchange rates.

 

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 Fund’s 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 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. Options:

 

The Fund may engage in option transactions and in doing so achieve similar objectives to what they would achieve through the sale or purchase of individual securities. A call option, upon payment of a premium, gives the purchaser of the option the right to buy, and the seller of the option the obligation to sell, the underlying security, index or other instrument at the exercise price. A put option gives the purchaser of the option, upon payment of a premium, the right to sell, and the seller the obligation to buy, the underlying security, index, or other instrument at the exercise price.

To seek to offset some of the risk of a potential decline in value of certain long positions, the Fund may also purchase put options on individual securities. The Fund may also seek to generate income from option premiums by writing (selling) options on a portion of the equity securities in the Fund’s portfolio.

 

When a Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When a Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, the Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost basis of the purchase. The difference between the premium and the amount received or paid on a closing purchase or sale transaction is also treated as a realized gain or loss. The cost of securities acquired through the exercise of call options is increased by premiums paid. The proceeds from securities sold through the exercise of put options are decreased by the premiums paid. Gain or loss on written options and purchased options is presented separately as net realized gain or loss on written options and net realized gain or loss on purchased options, respectively. There were no options contracts held as of July 31, 2016.

 

H. 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 currency contracts were held as of July 31, 2016:

 

Description		Counterparty		Settlement Date		Currency		Settlement Value				Current Value				Unrealized Appreciation
Contracts Sold:
Euro		State Street Bank and Trust Company		12/07/16		6,000,000 EUR		$	6,889,800			$	6,745,045			$	144,755
												$	6,745,045			$	144,755

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 23, 2016

 

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

 

By:		/s/ Samuel A. Lieber
		Samuel A. Lieber
		President (Principal Executive Officer)
Date:		September 23, 2016

 

By:		/s/ Ronald G. Palmer, Jr.
		Ronald G. Palmer, Jr.
		Chief Financial Officer (Principal Financial Officer)
Date:		September 23, 2016