Edgar Filing: GLOBAL HIGH INCOME FUND INC

Global High Income Fund

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-07540

Global High Income Fund Inc.

(Exact name of registrant as specified in charter)

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

(Address of principal executive offices) (Zip code)

Mark F. Kemper, Esq.

UBS Global Asset Management

1285 Avenue of the Americas

New York, NY 10019-6028

(Name and address of agent for service)

Copy to:

Jack W. Murphy, Esq.

Dechert LLP

1900 K Street, N.W.

Washington, DC 20006

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

Date of fiscal year end: October 31

Date of reporting period: July 31, 2014

Item 1. Schedule of Investments

Global High Income Fund Inc.

Industry diversification (unaudited)

As a percentage of net assets

As of July 31, 2014



Bonds
Corporate bonds
Banks	8.26	%
Building products	0.04
Capital markets	0.74
Chemicals	0.11
Construction materials	0.15
Diversified financial services	3.79
Electric utilities	1.96
Electrical equipment	1.19
Energy equipment & services	0.09
Food & staples retailing	0.09
Metals & mining	0.18
Oil, gas & consumable fuels	5.65
Road & rail	1.38
Specialty retail	0.14

Total corporate bonds	23.77	%
Non-US government obligations	66.66
Structured notes	1.47

Total bonds	91.90	%
Short-term investment	6.75

Total investments	98.65	%
Cash and other assets, less liabilities	1.35

Net assets	100.00	%

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)


	Face amount		Value
Bonds: 91.90%
Corporate bonds: 23.77%
Azerbaijan: 0.61%
International Bank of
Azerbaijan OJSC Via
Rubrika Finance Co., Ltd.,
7.200%, due 10/31/16	$	1,500,000	$	1,537,500

Brazil: 2.31%
Banco do Brasil SA,
5.875%, due 01/26/22¹		1,900,000		1,941,230
Caixa Economica Federal,
2.375%, due 11/06/17¹		200,000		192,940
Centrais Eletricas Brasileiras SA,
5.750%, due 10/27/21¹		500,000		505,000
5.750%, due 10/27/21²		2,200,000		2,222,000
Petrobras Global Finance BV,
2.374%, due 01/15/19³		470,000		468,825
3.112%, due 03/17/20³		450,000		457,043

				5,787,038

China: 0.20%
China Lesso Group Holdings Ltd.,
7.875%, due 05/13/16²		99,567		103,052
China Shanshui Cement Group Ltd.,
10.500%, due 04/27/17²		360,000		389,700

				492,752

Croatia: 0.09%
Agrokor DD,
8.875%, due 02/01/20¹		200,000		221,850

Czech Republic: 0.21%
EP Energy AS,
5.875%, due 11/01/19¹	EUR	350,000		532,608

Hungary: 0.13%
Magyar Export-Import Bank Zrt,
5.500%, due 02/12/18²	$	300,000		320,601

India: 0.97%
Canara Bank/London,
6.365%, due 11/28/21³		650,000		665,190
ICICI Bank Ltd.,
6.375%, due 04/30/22^2,3		1,700,000		1,759,500

				2,424,690

Indonesia: 1.22%
Majapahit Holding BV,
7.250%, due 06/28/17¹		100,000		113,000
Pertamina Persero PT,
4.300%, due 05/20/23¹		200,000		190,300
5.625%, due 05/20/43¹		200,000		188,566
6.000%, due 05/03/42¹		1,700,000		1,672,375
6.450%, due 05/30/44¹		650,000		677,625
6.500%, due 05/27/41²		200,000		210,000

				3,051,866

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)


	Face amount		Value
Bonds — (continued)
Corporate bonds — (continued)
Kazakhstan: 0.96%
Development Bank of
Kazakhstan JSC,
5.500%, due 12/20/15¹	$	264,000	$	274,560
Kazakhstan Temir Zholy Finance BV,
6.950%, due 07/10/42¹		750,000		838,125
6.950%, due 07/10/42²		350,000		391,125
KazMunayGas National Co. JSC,
4.400%, due 04/30/23²		200,000		199,250
5.750%, due 04/30/43¹		700,000		687,610

				2,390,670

Malaysia: 1.17%
Malayan Banking Bhd,
3.250%, due 09/20/22^2,3		2,900,000		2,922,350

Mexico: 1.13%
Comision Federal de Electricidad,
4.875%, due 01/15/24²		1,450,000		1,532,501
5.750%, due 02/14/42¹		500,000		524,570
Petroleos Mexicanos,
6.625%, due 06/15/35		650,000		764,530

				2,821,601

Morocco: 0.11%
OCP SA,
6.875%, due 04/25/44¹		250,000		265,000

Netherlands: 0.64%
FBN Finance Co. BV,
8.000%, due 07/23/21^1,3		1,600,000		1,601,600

Peru: 0.17%
Fondo MIVIVIENDA SA,
3.500%, due 01/31/23¹		450,000		429,570

Philippines: 1.19%
Power Sector Assets & Liabilities
Management Corp.,
9.625%, due 05/15/28		2,000,000		2,967,500

Russia: 3.65%
Evraz Group SA,
6.500%, due 04/22/20²		250,000		222,500
Metalloinvest Finance Ltd.,
5.625%, due 04/17/20²		250,000		227,500
RSHB Capital SA for OJSC
Russian Agricultural Bank,
5.298%, due 12/27/17²		1,000,000		964,145
8.700%, due 03/17/16	RUB	10,000,000		264,302
TMK OAO Via TMK Capital SA,
6.750%, due 04/03/20²	$	250,000		228,750
Sberbank of Russia,
5.717%, due 06/16/21²		580,000		570,355
6.125%, due 02/07/22²		700,000		700,000

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)


	Face amount		Value
Bonds — (continued)
Corporate bonds — (continued)
VEB Finance Ltd.,
5.375%, due 02/13/17²	$	2,550,000	$	2,511,750
5.942%, due 11/21/23¹		500,000		453,750
6.025%, due 07/05/22¹		200,000		183,750
6.025%, due 07/05/22²		1,400,000		1,286,250
6.800%, due 11/22/25¹		1,000,000		942,500
6.902%, due 07/09/20¹		200,000		197,500
6.902%, due 07/09/20²		400,000		395,000

				9,148,052

Singapore: 0.36%
Oversea-Chinese Banking Corp., Ltd.,
3.150%, due 03/11/23^2,3		900,000		902,701

South Africa: 1.03%
Edcon Pty Ltd.,
9.500%, due 03/01/18¹		350,000		341,251
Transnet SOC Ltd.,
9.500%, due 05/13/21¹	ZAR	12,660,000		1,173,013
10.000%, due 03/30/29		12,000,000		1,063,415

				2,577,679

Sri Lanka: 0.78%
National Savings Bank,
8.875%, due 09/18/18¹	$	900,000		1,027,125
8.875%, due 09/18/18²		800,000		913,000

				1,940,125

Turkey: 2.87%
Export Credit Bank of Turkey,
5.375%, due 11/04/16¹		700,000		735,000
5.875%, due 04/24/19¹		400,000		427,000
TC Ziraat Bankasi AS,
4.250%, due 07/03/19^1,4		900,000		893,250
Turkiye Halk Bankasi AS,
3.875%, due 02/05/20²		1,900,000		1,805,000
4.875%, due 07/19/17¹		800,000		824,000
Turkiye Vakiflar Bankasi Tao,
3.750%, due 04/15/18²		1,300,000		1,272,375
5.000%, due 10/31/18²		800,000		816,248
5.750%, due 04/24/17²		400,000		420,500

				7,193,373

Ukraine: 0.47%
Nak Naftogaz Ukraine,
9.500%, due 09/30/14		1,220,000		1,186,450

United Arab Emirates: 0.74%
IPIC GMTN Ltd.,
5.500%, due 03/01/22²		1,620,000		1,854,900

Venezuela: 2.76%
Petroleos de Venezuela SA,
5.250%, due 04/12/17²		530,000		446,589
6.000%, due 11/15/26²		2,360,000		1,454,940
8.500%, due 11/02/17¹		720,000		671,760
8.500%, due 11/02/17²		610,000		569,130
9.000%, due 11/17/21²		2,860,000		2,428,140
9.750%, due 05/17/35²		1,650,000		1,332,375

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)


	Face amount		Value
Bonds — (continued)
Corporate bonds — (concluded)
			$	6,902,934

Total corporate bonds
(cost $59,035,482)				59,473,410

Non-US government obligations: 66.66%
Albania: 1.02%
Republic of Albania,
7.500%, due 11/04/15	EUR	1,800,000		2,555,920

Argentina: 0.41%
Republic of Argentina,
0.000%, due 12/15/35⁵	$	520,000		48,100
0.000%, due 12/15/35⁵		501,737		45,658
7.000%, due 10/03/15		165,000		155,158
Series 1, 8.750%, due 06/02/17		872,897		772,514

				1,021,430

Belarus: 1.91%
Republic of Belarus,
8.750%, due 08/03/15²		4,550,000		4,618,250
8.950%, due 01/26/18²		150,000		159,000

				4,777,250

Brazil: 9.03%
Federative Republic of Brazil,
5.000%, due 01/27/45		800,000		770,000
6.000%, due 08/15/50⁶	BRL	1,000,000		1,071,188
Notas do Tesouro Nacional,
Series B,
6.000%, due 08/15/16⁶		4,100,000		4,498,149
6.000%, due 08/15/22⁶		2,720,000		2,960,891
6.000%, due 05/15/45⁶		7,950,000		8,530,225
Series F,
10.000%, due 01/01/17		1,280,000		545,709
10.000%, due 01/01/21		6,428,000		2,609,724
State of Minas Gerais,
5.333%, due 02/15/28¹	$	1,600,000		1,600,000

				22,585,886

China: 0.21%
China Government Bond,
2.480%, due 12/01/20	CNY	3,500,000		532,219

Colombia: 3.54%
Republic of Colombia,
2.625%, due 03/15/23	$	580,000		543,750
4.375%, due 07/12/21		350,000		374,500
4.375%, due 03/21/23	COP	395,000,000		188,329
6.000%, due 04/28/28		484,000,000		233,573
6.125%, due 01/18/41	$	150,000		180,750
7.375%, due 09/18/37		575,000		782,000
7.750%, due 04/14/21	COP	2,530,000,000		1,509,737
8.125%, due 05/21/24	$	250,000		336,875
9.850%, due 06/28/27	COP	5,051,000,000		3,464,631
12.000%, due 10/22/15		2,130,000,000		1,235,652

				8,849,797

Costa Rica: 0.54%
Banco Nacional de Costa Rica,
4.875%, due 11/01/18²	$	600,000		615,000
6.250%, due 11/01/23¹		500,000		517,500

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)


	Face amount		Value
Bonds — (continued)
Non-US government obligations — (continued)
Republic of Costa Rica,
7.000%, due 04/04/44¹	$	200,000	$	213,000

				1,345,500

Dominican Republic: 0.09%
Republic of Dominica,
7.500%, due 05/06/21¹		200,000		231,062

Ecuador: 0.13%
Republic of Ecuador,
7.950%, due 06/20/24¹		300,000		310,349

El Salvador: 0.43%
Republic of El Salvador,
7.750%, due 01/24/23²		320,000		360,800
8.250%, due 04/10/32²		615,000		718,062

				1,078,862

Gabon: 0.24%
Gabonese Republic,
6.375%, due 12/12/24¹		550,000		594,000

Ghana: 0.48%
Republic of Ghana,
7.875%, due 08/07/23²		700,000		678,125
8.500%, due 10/04/17²		500,000		527,500

				1,205,625

Honduras: 0.09%
Republic of Honduras,
8.750%, due 12/16/20¹		200,000		218,056

Hungary: 2.22%
Government of Hungary,
5.375%, due 02/21/23		550,000		586,108
5.750%, due 11/22/23		800,000		870,224
6.500%, due 06/24/19	HUF	90,000,000		431,910
6.750%, due 02/24/17		70,000,000		326,990
7.500%, due 11/12/20		150,000,000		764,218
7.625%, due 03/29/41	$	900,000		1,144,422
Magyar Fejlesztesi Bank Rt,
5.875%, due 05/31/16	EUR	1,000,000		1,433,944

				5,557,816

Indonesia: 6.84%
Indonesia Treasury Bond,
8.375%, due 03/15/34	IDR	1,210,000,000		101,782
9.000%, due 03/15/29		66,350,000,000		5,986,002
9.500%, due 07/15/23		29,400,000,000		2,747,919
11.750%, due 08/15/23		4,600,000,000		486,853
12.000%, due 09/15/26		12,215,000,000		1,349,263
Republic of Indonesia,
3.375%, due 04/15/23²	$	300,000		283,875
3.750%, due 04/25/22²		430,000		422,475
4.875%, due 05/05/21¹		1,080,000		1,142,100
5.875%, due 03/13/20²		1,000,000		1,118,750
6.625%, due 02/17/37²		920,000		1,061,450
7.750%, due 01/17/38²		1,235,000		1,596,237
8.500%, due 10/12/35²		400,000		552,500
11.625%, due 03/04/19²		200,000		271,000

				17,120,206

Iraq: 0.12%
Republic of Iraq,
5.800%, due 01/15/28²		350,000		309,750

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)


	Face amount		Value
Bonds — (continued)
Non-US government obligations — (continued)
Kenya: 0.44%
Republic of Kenya,
5.875%, due 06/24/19¹	$	600,000	$	616,500
6.875%, due 06/24/24¹		450,000		478,125

				1,094,625

Latvia: 0.11%
Republic of Latvia,
5.250%, due 02/22/17²		250,000		271,342

Lithuania: 0.47%
Republic of Lithuania,
6.125%, due 03/09/21¹		250,000		292,813
6.125%, due 03/09/21²		450,000		527,062
6.625%, due 02/01/22¹		300,000		362,249

				1,182,124

Malaysia: 2.77%
Government of Malaysia,
3.197%, due 10/15/15	MYR	4,100,000		1,284,136
3.580%, due 09/28/18		2,600,000		813,151
3.741%, due 02/27/15		450,000		141,336
3.835%, due 08/12/15		450,000		141,864
4.012%, due 09/15/17		9,200,000		2,917,675
4.262%, due 09/15/16		5,100,000		1,625,019

				6,923,181

Mexico: 3.60%
Mexican Bonos,
Series M,
7.750%, due 11/13/42	MXN	4,800,000		403,785
10.000%, due 11/20/36		2,000,000		208,142
Mexican Udibonos,
Series S,
2.500%, due 12/10/20⁶		16,454,538		1,294,559
4.000%, due 11/15/40⁶		34,451,688		2,931,834
United Mexican States,
4.750%, due 03/08/44	$	1,100,000		1,119,250
5.550%, due 01/21/45		800,000		912,000
6.050%, due 01/11/40		1,600,000		1,948,000
6.750%, due 09/27/34		150,000		195,000

				9,012,570

Mongolia: 1.25%
Development Bank of Mongolia LLC,
5.750%, due 03/21/17²		1,500,000		1,417,500
Mongolia Government International Bond,
4.125%, due 01/05/18¹		300,000		277,125
5.125%, due 12/05/22¹		1,650,000		1,419,000

				3,113,625

Montenegro: 0.87%
Republic of Montenegro,
7.875%, due 09/14/15	EUR	1,550,000		2,185,427

Nigeria: 1.58%
Nigeria Treasury Bills,
11.648%, due 04/23/15⁷	NGN	117,000,000		670,280
12.323%, due 04/09/15⁷		170,000,000		977,909
Republic of Nigeria,
5.125%, due 07/12/18²	$	200,000		208,000
6.375%, due 07/12/23²		200,000		216,500

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)


	Face amount		Value
Bonds — (continued)
Non-US government obligations — (continued)
15.100%, due 04/27/17	NGN	280,000,000	$	1,886,616

				3,959,305

Pakistan: 0.08%
Islamic Republic of Pakistan,
7.125%, due 03/31/16²	$	100,000		103,500
7.875%, due 03/31/36²		100,000		92,250

				195,750

Peru: 2.41%
Peruvian Government International Bond,
6.950%, due 08/12/31²	PEN	860,000		335,802
Republic of Peru,
5.625%, due 11/18/50	$	850,000		952,756
6.900%, due 08/12/37²	PEN	1,250,000		469,407
6.950%, due 08/12/31¹		1,750,000		683,318
7.840%, due 08/12/20²		7,150,000		2,951,970
8.200%, due 08/12/26		1,442,000		633,220

				6,026,473

Philippines: 1.44%
Republic of the Philippines,
3.900%, due 11/26/22	PHP	20,000,000		457,682
4.950%, due 01/15/21		128,000,000		3,142,594

				3,600,276

Poland: 3.90%
Republic of Poland,
4.750%, due 04/25/17	PLN	16,500,000		5,594,919
5.000%, due 04/25/16		5,300,000		1,771,253
5.000%, due 03/23/22	$	200,000		222,042
5.500%, due 10/25/19	PLN	6,000,000		2,162,676

				9,750,890

Romania: 1.24%
Government of Romania,
4.375%, due 08/22/23¹	$	200,000		205,000
5.750%, due 01/27/16	RON	3,150,000		997,802
5.900%, due 07/26/17		3,050,000		1,000,432
6.125%, due 01/22/44¹	$	800,000		909,000

				3,112,234

Russia: 3.81%
Russian Federation,
5.625%, due 04/04/42¹		1,000,000		983,750
5.625%, due 04/04/42²		200,000		196,750
7.000%, due 01/25/23	RUB	25,100,000		610,640
7.050%, due 01/19/28		55,000,000		1,280,419
7.500%, due 03/31/30^1,8	$	548,000		619,788
7.500%, due 03/31/30^2,8		31,510		35,638
7.600%, due 04/14/21	RUB	155,000,000		4,027,357
8.150%, due 02/03/27		69,500,000		1,786,899

				9,541,241

South Africa: 3.05%
Republic of South Africa,
5.500%, due 03/09/20	$	100,000		108,625
5.875%, due 09/16/25		1,500,000		1,657,500
6.250%, due 03/31/36	ZAR	13,900,000		967,634
7.000%, due 02/28/31		14,000,000		1,106,709
7.750%, due 02/28/23		20,950,000		1,911,934
10.500%, due 12/21/26		11,050,000		1,202,258
13.500%, due 09/15/15		6,800,000		679,106

				7,633,766

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)


	Face amount		Value
Bonds — (continued)
Non-US government obligations — (concluded)
Sri Lanka: 0.90%
Republic of Sri Lanka,
6.250%, due 10/04/20¹	$	550,000	$	583,000
6.250%, due 10/04/20²		1,000,000		1,060,000
7.400%, due 01/22/15²		600,000		613,500

				2,256,500

Thailand: 2.94%
Government of Thailand,
1.200%, due 07/14/21^2,6	THB	161,146,050		4,876,815
3.775%, due 06/25/32		10,000,000		304,296
3.875%, due 03/07/18		2,100,000		67,579
3.875%, due 06/13/19		62,100,000		2,000,342
5.125%, due 03/13/18		3,400,000		113,931

				7,362,963

Turkey: 5.33%
Republic of Turkey,
5.125%, due 03/25/22	$	1,450,000		1,531,563
5.625%, due 03/30/21		1,000,000		1,090,000
6.250%, due 09/26/22		600,000		678,000
6.750%, due 05/30/40		500,000		590,000
6.875%, due 03/17/36		250,000		298,125
7.100%, due 03/08/23	TRY	3,250,000		1,355,057
7.250%, due 03/05/38	$	250,000		312,187
7.500%, due 11/07/19		200,000		236,250
8.000%, due 02/14/34		350,000		464,625
8.500%, due 09/14/22	TRY	1,500,000		682,326
10.500%, due 01/15/20		12,100,000		6,084,990

				13,323,123

Ukraine: 0.44%
Financing of Infrastructural Projects State Enterprise, 8.375%, due 11/03/17¹	$	1,150,000		1,098,066

Uruguay: 0.08%
Republic of Uruguay,
4.500%, due 08/14/24		116,000		122,670
6.875%, due 09/28/25		60,000		73,746

				196,416

Venezuela: 2.25%
Republic of Venezuela,
7.650%, due 04/21/25		2,850,000		2,136,343
7.750%, due 10/13/19²		215,000		181,765
7.750%, due 10/13/19²		150,000		126,812
8.250%, due 10/13/24²		2,000,000		1,564,382
9.250%, due 05/07/28²		280,000		227,979
9.375%, due 01/13/34		1,700,000		1,379,552

				5,616,833

Zambia: 0.40%
Republic of Zambia,
5.375%, due 09/20/22¹		400,000		381,000
8.500%, due 04/14/24¹		550,000		622,875

				1,003,875

Total Non-US government obligations (cost $166,146,029)				166,754,333

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)


	Face amount		Value
Bonds — (concluded)
Structured notes: 1.47%
Bangladesh: 0.81%
Standard Chartered Bank,
11.700%, due 06/05/18¹
(linked to People’s Republic of Bangladesh Bonds,
11.700%, due 06/05/18)	$	1,985,909	$	2,032,145

Ghana: 0.19%
Citigroup Funding, Inc.,
23.000%, due 08/23/17¹
(linked to Republic of Ghana,
23.000%, due 08/23/17)		1,750,000		474,006

Vietnam: 0.47%
Citigroup Funding, Inc.,
9.400%, due 07/03/15¹
(linked to Socialist Republic of Vietnam Bonds,
9.400%, due 07/03/15)	VND	24,000,000,000		1,178,147

Total structured notes (cost $4,085,260)				3,684,298

Total bonds (cost $229,266,771)				229,912,041

	Shares
Short-term investment: 6.75%
Investment company: 6.75%
UBS Cash Management Prime Relationship Fund⁹ (cost $16,875,974)		16,875,974		16,875,974

Total investments: 98.65% (cost $246,142,745)¹⁰				246,788,015
Cash and other assets, less liabilities— 1.35%				3,383,806

Net assets — 100.00%			$	250,171,821

Notes to portfolio of investments

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


Gross unrealized appreciation	$	12,664,632
Gross unrealized depreciation		(12,019,362)

Net unrealized appreciation of investments	$	645,720

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, 2014 (unaudited)

Forward foreign currency contracts


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

BB	BRL	800,000	USD	350,800		09/17/14	$	2,763
BB	EUR	7,035,000	USD	9,626,103		10/10/14		203,724
BB	INR	89,824,320	USD	1,486,748		09/17/14		18,402
BB	MXN	6,350,000	USD	487,169		09/17/14		8,448
BB	PEN	3,512,000	USD	1,243,758		09/17/14		(3,254	)
BB	RUB	12,800,000	USD	358,493		09/17/14		4,308
BB	USD	2,078,911	CNY	12,830,000		09/17/14		(9,692	)
BB	USD	148,216	IDR	1,758,586,958		09/17/14		2,442
BB	USD	2,588,716	PLN	7,895,000		09/17/14		(65,835	)
BB	USD	2,757,487	RUB	96,207,999		09/17/14		(95,344	)
BB	USD	3,196,022	TRY	6,874,324		09/17/14		(19,128	)
BB	USD	4,289,772	ZAR	46,520,000		09/17/14		15,920
CSI	BRL	8,200,500	USD	3,584,448		09/17/14		16,850
CSI	INR	29,941,440	USD	496,212		09/17/14		6,764
CSI	MYR	900,000	USD	282,176		08/04/14		574
CSI	USD	154,122	CLP	86,339,400		09/17/14		(3,906	)
CSI	USD	1,683,817	COP	3,150,000,000		09/17/14		(13,652	)
CSI	USD	1,063,711	EUR	795,000		10/10/14		1,078
CSI	USD	1,243,243	MYR	3,950,000		09/17/14		(11,895	)
CSI	USD	6,004,240	MYR	19,380,487		09/17/14		37,314
DB	BRL	9,084,494	USD	3,967,378		09/17/14		15,201
DB	INR	29,941,440	USD	496,130		09/17/14		6,681
DB	USD	2,501,157	INR	149,707,200		09/17/14		(53,914	)
DB	USD	752,601	KRW	769,309,200		09/17/14		(5,899	)
DB	USD	8,638,712	MXN	113,206,000		09/17/14		(104,222	)
DB	USD	268,745	PHP	11,760,300		09/17/14		1,445
DB	USD	816,133	THB	26,638,590		09/17/14		11,686
GSI	COP	2,688,160,000	USD	1,412,591		09/17/14		(12,701	)
GSI	MXN	6,350,000	USD	487,240		09/17/14		8,519
GSI	USD	5,515,706	HUF	1,250,217,499		09/17/14		(191,747	)
GSI	USD	184,360	RON	600,000		09/17/14		(3,283	)
MSCI	IDR	2,101,000,000	USD	177,975		09/17/14		(2,017	)
Net unrealized depreciation on forward foreign currency contracts							$	(234,370	)

Futures contracts


	Expiration date		Cost/ (proceeds)			Value			Unrealized depreciation

US Treasury futures buy contracts:
US Long Bond, 20 contracts (USD)		September 2014	$	2,755,861		$	2,748,125		$	(7,736	)
5 Year US Treasury Notes, 20 contracts (USD)		September 2014		2,397,461			2,376,719			(20,742	)
10 Year US Treasury Notes, 45 contracts (USD)		September 2014		5,635,530			5,607,422			(28,108	)

US Treasury futures sell contracts:
US Ultra Bond, 15 contracts (USD)		September 2014		(2,261,763	)		(2,262,656	)		(893	)

Net unrealized depreciation on futures contracts									$	(57,479	)

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)

Foreign exchange written option activity for the period ended July 31, 2014 was as follows:


	Premiums received
Foreign exchange options outstanding at October 31, 2013	$	278,660
Foreign exchange options written		232,734
Foreign exchange options terminated in closing purchase transactions		(511,394)
Foreign exchange options expired prior to exercise		—

Foreign exchange options outstanding at July 31, 2014	$	—

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)

Currency swap agreements¹¹

Notional Amount

Counterparty

Pay contracts

Receive contracts

Termination date

Pay
rate¹²

Receive

rate¹²

Upfront
payments

Value

Unrealized
appreciation

PHP 85,653,500

USD 2,085,803

12/18/15

1.300%

6 month USD LIBOR

—

110,431

Interest rate swap agreements


Counterparty	Notional amount		Termination date		Payments made by the Fund¹²	Payments received by the Fund¹²	Upfront payments		Value			Unrealized appreciation/ (depreciation)
BB	KRW	3,250,000,000		08/19/16	3.530%	3 month CD KSDA	$	—	$	(71,417	)	$	(71,417	)
CITI	BRL	6,749,706		01/02/17	1 Day CDI	12.280%		—		77,663			77,663
CITI	BRL	2,814,422		01/04/21	12.570	1 Day CDI		—		(88,157	)		(88,157	)
CITI	KRW	2,900,000,000		08/26/16	3.410	3 month CD KSDA		—		(56,229	)		(56,229	)
CITI	MXN	27,530,000		03/21/19	5.510	28 day MXIBTIIE		—		(42,462	)		(42,462	)
CITI	MXN	16,200,000		03/14/24	28 day MXIBTIIE	6.570		—		40,336			40,336
CITI	MYR	1,950,000		08/24/15	3 month KLIBOR	3.505		—		(1,087	)		(1,087	)
DB	MYR	7,650,000		08/24/15	3 month KLIBOR	3.500		—		(4,412	)		(4,412	)
DB	TWD	85,000,000		08/22/16	1.325	3 month TWCPBA		—		(19,842	)		(19,842	)
DB	ZAR	12,700,000		05/31/23	3 month JIBAR	7.480		—		(37,152	)		(37,152	)
GSI	KRW	3,591,000,000		01/21/19	3.380	3 month CD KSDA		—		(60,072	)		(60,072	)
GSI	TWD	85,500,000		08/26/16	1.280	3 month TWCPBA		—		(16,738	)		(16,738	)
MLI	MXN	35,610,000		03/05/19	5.530	28 day MXIBTIIE		—		(56,753	)		(56,753	)
MLI	MXN	7,200,000		11/16/28	28 day MXIBTIIE	8.830		—		119,350			119,350
MLI	MXN	7,000,000		11/21/28	28 day MXIBTIIE	8.610		—		104,464			104,464
MLI	ZAR	35,000,000		06/04/18	3 month JIBAR	6.400		—		(90,254	)		(90,254	)

							$	—	$	(202,762	)	$	(202,762	)

Credit default swap on credit indices—buy protection¹³


Counterparty	Referenced index¹⁴	Notional amount		Termination date		Payments made by the Fund¹²		Upfront payments received		Value			Unrealized depreciation
MLI	CDX.EM Series 20 Index		USD 12,000,000		12/20/18		5.000%	$	852,000	$	(1,184,997	)	$	(332,997	)

Credit default swaps on sovereign issues — buy protection¹³


Counterparty	Referenced obligation¹⁴	Notional amount		Termination date		Payments made by the Fund¹²		Upfront payments made			Value		Unrealized depreciation
DB	Federation of Russia bond, 2.250%, due 03/31/30		USD 1,000,000		03/20/16		1.000%	$	(16,785	)	$	10,427	$	(6,358	)

Credit default swaps on sovereign issues—sell protection¹⁵


Counterparty	Referenced obligation¹⁴	Notional amount		Termination date		Payments received by the Fund¹²			Upfront payments received		Value			Unrealized appreciation/ (depreciation)			Credit spread¹⁶
BB	Federal Republic of Brazil bond, 12.250%, due 03/06/30		USD 180,000		06/20/22		1.000	%	$	14,775	$	(12,332	)	$	2,443			2.020	%
BB	Federation of Russia bond, 2.250%, due 03/31/30		USD 2,900,000		12/20/22		1.000			277,973		(332,899	)		(54,926	)		2.680
DB	Federal Republic of Brazil bond, 12.250%, due 03/06/30		USD 800,000		06/20/22		1.000			64,908		(54,803	)		10,105			2.020

									$	357,656	$	(400,034	)	$	(42,378	)

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)

The following is a summary of the fair valuations according to the inputs used as of July 31, 2014 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	$	—		$	59,473,410		$	—	$	59,473,410
Non-US government obligations		—			166,754,333			—		166,754,333
Structured notes		—			3,684,298			—		3,684,298
Short-term investment		—			16,875,974			—		16,875,974
Forward foreign currency contracts		—			362,119			—		362,119
Swap agreements		—			462,671			—		462,671
Total	$	—		$	247,612,805		$	—	$	247,612,805

Liabilities
Forward foreign currency contracts	$	—		$	(596,489	)	$	—	$	(596,489	)
Futures contracts		(57,479	)		—			—		(57,479	)
Swap agreements		—			(2,129,606	)		—		(2,129,606	)
Total	$	(57,479	)	$	(2,726,095	)	$	—	$	(2,783,574	)

At July 31, 2014, there were no transfers between Level 1 and Level 2.

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)

Portfolio footnotes

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, 2014, the value of these securities amounted to $34,736,257 or 13.88% of net assets.

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, 2014, the value of these securities amounted to $59,896,132 or 23.94% of net assets.

Variable or floating rate security — The interest rate shown is the current rate as of July 31, 2014 and changes periodically.

⁴

Security is being fair valued by a valuation committee under the direction of the Board of Trustees. At July 31, 2014, the value of this security amounted to $893,250 or 0.36% of net assets.

⁵

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

⁶

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

⁷

Rate shown is the discount rate at date of purchase.

⁸

Step bond — Coupon rate increases in increments to maturity. Rate disclosed is as of July 31, 2014. 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 10/31/13		Purchases during the nine months ended 07/31/14		Sales during the nine months ended 07/31/14		Value 07/31/14		Net income earned from affiliate for the nine months ended 07/31/14
UBS Cash Management Prime Relationship Fund	$	10,870,206	$	68,911,987	$	62,906,219	$	16,875,974	$	12,014

¹⁰

The Fund calculates its net asset value based on the current market value, where available, for its portfolio securities. The Fund normally obtains market values for its investments from independent pricing sources and broker-dealers. Independent pricing sources may use last reported sale prices, official market closing prices, current market quotations or valuations from computerized evaluation systems that derive values based on comparable investments. An evaluation investments 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 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 securities or instruments 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 the Board believes to be the fair value of these investments as of 4:00 p.m. Eastern Time. Investments in open-end investment companies are valued at the daily closing net asset value of the respective investment company. Pursuant to the Fund’s use of the practical expedient within ASC Topic 820, investments in non-registered investment companies are also valued at the daily net asset value.

¹¹

Illiquid investment as of July 31, 2014.

Global High Income Fund Inc.

Portfolio of investments — July 31, 2014 (unaudited)

¹²

Payments made or received are based on the notional amount.

¹³

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

¹⁴

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

¹⁵

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

¹⁶

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


Portfolio acronyms

CD KSDA		Korean Securities Dealer Association 91-day Certificate of Deposit Rate
CDI		CHESS Depositary Interest
GDP		Gross Domestic Product
GMTN		Global Medium Term Note
JIBAR		Johannesburg Interbank Agreed Rate
JSC		Joint Stock Company
KLIBOR		Korea Interbank Offered Rate
LIBOR		London Interbank Offered Rate
MXIBTIIE		Mexico Interbank TIIE 28 Day Rate
OJSC		Open Joint Stock Company
TWCPBA		Taiwan Secondary Markets Bills Rate

Counterparty abbreviations

BB		Barclays Bank PLC
CITI		CitiBank NA
CSI		Credit Suisse International
DB		Deutsche Bank AG
GSI		Goldman Sachs International
MLI		Merrill Lynch International
MSCI		Morgan Stanley & Co. International PLC

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
KRW		Korean Won
MXN		Mexican Peso
MYR		Malaysian Ringgit
NGN		Nigeria Naira
PEN		Peruvian Nuevo Sol
PHP		Philippine Peso
PLN		Polish Zloty
RON		Romanian Leu
RUB		Russian Ruble
THB		Thai Baht
TRY		Turkish Lira
TWD		Taiwan Dollar
USD		United States Dollar
VND		Vietnamese Dong
ZAR		South African Rand

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.

In January 2013, Accounting Standards Update 2013-01 (“ASU 2013-01”), “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities”, replaced Accounting Standards

Update 2011-11 (“ASU 2011-11”), “Disclosures about Offsetting Assets and Liabilities”. ASU 2013-01 is effective for fiscal years beginning on or after January 1, 2013, and interim periods within those annual periods. ASU 2011-11 was intended to enhance disclosure requirements on the offsetting of financial assets and liabilities. ASU 2013-01 limits the scope of the new balance sheet offsetting disclosures to derivatives, repurchase agreements, and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Management is currently evaluating the application of ASU 2013-01 and its impact, if any, on the Fund’s financial statements.

For more information regarding the Fund’s other significant accounting policies, please refer to the Fund’s annual report to shareholders dated October 31, 2013.

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, 2014

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, 2014

By:		/s/ Thomas Disbrow
		Thomas Disbrow
		Vice President and Treasurer

Date: September 29, 2014