N-Q 1 ubssmaghi_nq.htm QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

       Investment Company Act file number: 811-07540        
     
 
Global High Income Fund Inc.
 
(Exact name of registrant as specified in charter)
 
1285 Avenue of the Americas, New York, New York 10019-6028
 
(Address of principal executive offices) (Zip code)

Mark F. Kemper, Esq.
UBS Global Asset Management
1285 Avenue of the Americas
New York, NY 10019-6028
(Name and address of agent for service)

Copy to:
Jack W. Murphy, Esq.
Dechert LLP
1900 K Street, N.W.
Washington, DC 20006


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

Date of fiscal year end: October 31

Date of reporting period: January 31, 2013


Item 1. Schedule of Investments

Global High Income Fund Inc.

Industry diversification (unaudited)
As a percentage of net assets
As of January 31, 2013
Bonds
Corporate bonds
Auto components 0.14 %
Building products 0.07
Capital markets 0.15
Commercial banks 5.93
Construction materials 0.14
Diversified financial services 2.24
Electric utilities 2.53
Food products 0.08
Machinery 0.37
Metals & mining 0.21
Oil, gas & consumable fuels 4.49
Paper & forest products 0.18
Road & rail 0.97
Specialty retail 0.22
Total corporate bonds 17.72 %
Non-US government obligations 68.28  
Convertible bond 1.21
Structured notes 9.23
Total bonds 96.44 %
Short-term investment 1.17
Options purchased 0.12
Total investments 97.73 %
Cash and other assets, less liabilities 2.27
Net assets 100.00 %


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Security description       Face
amount		       Value
Bonds — 96.44%
Corporate bonds — 17.72%
Argentina — 0.09%
WPE International Cooperatief UA,
       10.375%, due 09/30/201 $ 300,000 $ 264,000
Brazil — 2.01%
Banco do Brasil SA,
       5.875%, due 01/26/222 2,100,000 2,265,375
Banco do Nordeste do Brasil SA,
       4.375%, due 05/03/191 300,000 310,500
Caixa Economica Federal,
       2.375%, due 11/06/172 200,000 197,750
Centrais Eletricas Brasileiras SA,
       5.750%, due 10/27/211 2,400,000 2,598,000
       5.750%, due 10/27/212 500,000   541,250
Union National FIDC Trust 2006,
       Series 2007-2, due 07/01/102,3,4,5,6 BRL   1,832,665 110
       Series 3, due 07/01/102,3,4,5,6 2,075,000 125
       Series 4, due 05/01/111,3,4,5,6 3,560,082 214
  5,913,324
China — 0.58%
China Automation Group Ltd.,  
       7.750%, due 04/20/16 $ 1,150,000 1,086,750
China Liansu Group Holdings Ltd.,  
       7.875%, due 05/13/161   200,000 206,000
China Shanshui Cement Group Ltd.,
       10.500%, due 04/27/171 360,000 405,000
            1,697,750
Croatia — 0.08%  
Agrokor DD,
       8.875%, due 02/01/202 200,000 224,750
Czech Republic — 0.17%
EP Energy AS,
       5.875%, due 11/01/192 EUR 350,000 504,252
Indonesia — 0.88%
Gajah Tunggal Tbk PT,
       7.750%, due 02/06/182 $ 400,000 398,000
Majapahit Holding BV,
       7.250%, due 06/28/172 100,000 117,620
Pertamina Persero PT,
       6.000%, due 05/03/422 1,700,000 1,836,000
       6.500%, due 05/27/411 200,000 229,500
  2,581,120
Kazakhstan — 0.67%
Alliance Bank JSC,
       10.500%, due 03/25/171 350,000 332,500
Development Bank of Kazakhstan JSC,
       5.500%, due 12/20/152 264,000 284,460
Kazakhstan Temir Zholy Finance BV,
       6.950%, due 07/10/421 350,000 436,625
       6.950%, due 07/10/422 750,000 935,625
  1,989,210
Malaysia — 0.27%
Malayan Banking Bhd,
       3.250%, due 09/20/227 800,000 808,240


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Security description       Face
amount		       Value
Mexico — 1.21%
Comision Federal de Electricidad,
       5.750%, due 02/14/422 $ 500,000 $ 555,000
Grupo Papelero Scribe SA,
       8.875%, due 04/07/201 550,000 533,500
Pemex Project Funding Master Trust,
       6.625%, due 06/15/35 2,050,000 2,475,375
3,563,875
Mongolia — 0.12%            
Mongolian Mining Corp.,
       8.875%, due 03/29/171 360,000 370,800
Peru — 0.49%
Banco de Credito del Peru,
       5.375%, due 09/16/201 900,000 1,003,500
El Fondo MIVIVIENDA SA,
       3.500%, due 01/31/232 450,000 447,750
  1,451,250
Philippines — 1.24%
National Power Corp.,
       9.625%, due 05/15/28 2,360,000 3,658,000
Russia — 4.06%
RSHB Capital SA for OJSC Russian
       Agricultural Bank,
       7.125%, due 01/14/142 300,000 312,750
       7.500%, due 03/25/13 RUB   80,000,000 2,661,548
       9.000%, due 06/11/142 $ 550,000 598,125
SB Capital SA,
       5.180%, due 06/28/191 2,550,000 2,757,825
       5.717%, due 06/16/211 330,000 367,442
VEB Finance Ltd.,
       6.025%, due 07/05/222 200,000 229,500
       6.800%, due 11/22/251 900,000 1,091,250
       6.800%, due 11/22/252 1,000,000 1,212,500
       6.902%, due 07/09/202 200,000 240,750
Vnesheconombank,
       Series 6, 7.900%, due 10/13/207 RUB 75,000,000 2,494,002
  11,965,692
Singapore — 1.14%
DBS Bank Ltd.,
       3.625%, due 09/21/221,7 $ 200,000 209,340
Oversea-Chinese Banking Corp. Ltd.,
       3.150%, due 03/11/231,7 1,500,000 1,521,864
       3.750%, due 11/15/227 700,000 734,020
United Overseas Bank Ltd.,
       2.875%, due 10/17/227 900,000 908,452
  3,373,676
South Africa — 0.72%
Edcon Pty Ltd.,
       9.500%, due 03/01/181 300,000 300,000
       9.500%, due 03/01/182 350,000 350,000
Transnet Ltd.,
       Series 2, 10.000%, due 03/30/29 ZAR 12,000,000 1,464,427
  2,114,427
Turkey — 0.69%
Export Credit Bank of Turkey,
       5.375%, due 11/04/162 $ 700,000 756,000
       5.875%, due 04/24/192 400,000 448,000
Turkiye Halk Bankasi AS,
       4.875%, due 07/19/172 800,000 844,000
2,048,000


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Security description       Face
amount		       Value
Ukraine — 0.95%
Biz Finance PLC,
       11.000%, due 02/03/143 UAH 15,000,000 $ 1,547,246
NAK Naftogaz Ukraine,
       9.500%, due 09/30/14 $ 1,220,000 1,253,550
2,800,796
United Arab Emirates — 0.63%
IPIC GMTN Ltd.,
       5.500%, due 03/01/221 1,620,000 1,867,050
Venezuela — 1.72%
Petroleos de Venezuela SA,
       5.250%, due 04/12/171 530,000 461,100
       5.375%, due 04/12/27 1,150,000 822,250
       8.500%, due 11/02/171 780,000 766,350
       8.500%, due 11/02/172 1,500,000 1,473,750
       9.000%, due 11/17/211 120,000 114,000
       9.750%, due 05/17/351 1,500,000 1,421,250
5,058,700
 
Total corporate bonds
       (cost $53,529,780) 52,254,912
Non-US government obligations — 68.28%
Albania — 0.86%
Republic of Albania,
       7.500%, due 11/04/15 EUR 1,800,000 2,522,078
Argentina — 2.46%
Republic of Argentina,
       4.191%, due 12/15/358 2,200,000 129,721
       4.383%, due 12/15/358 $ 15,601,737 813,565
       4.383%, due 12/15/358 14,290,000 745,163
       Series VII, 7.000%, due 09/12/13 675,000 660,750
       7.000%, due 10/03/15 1,000,000 855,972
       Series X, 7.000%, due 04/17/17 1,150,000 912,174
       7.820%, due 12/31/33 EUR 358,647 281,225
       8.280%, due 12/31/33 $ 1,659,097 1,016,197
       Series NY, 8.280%, due 12/31/33 355,550 224,885
       Series 1, 8.750%, due 06/02/17 2,072,897 1,632,406
  7,272,058
Belarus — 1.03%
Republic of Belarus,
       8.750%, due 08/03/151 2,750,000 2,887,500
       8.950%, due 01/26/181 150,000 159,750
  3,047,250
Brazil — 10.68%
Federal Republic of Brazil,
       5.625%, due 01/07/41 1,570,000 1,903,625
       6.000%, due 08/15/509 BRL 3,006,370 2,087,871
Letras do Tesouro Nacional,
       7.185%, due 04/01/1310 4,750,000 2,360,185
       7.272%, due 04/01/1410 3,750,000 1,732,958
Notas do Tesouro Nacional,
       Series B,
       6.000%, due 08/15/169 9,198,595 5,101,963
       6.000%, due 05/15/459 20,752,928 14,263,957
       Series F,
       10.000%, due 01/01/17 1,280,000 668,215
       10.000%, due 01/01/21 6,428,000 3,331,960
  31,450,734
Chile — 1.44%
Bonos de la Tesoreria de la Republica,
       3.000%, due 07/01/179 CLP   1,300,029,780 2,788,038


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Security description       Face
amount		       Value
Bonos de la Tesoreria de la Republica en pesos,
       6.000%, due 01/01/20 CLP 245,000,000 $ 532,993
       6.000%, due 01/01/22 215,000,000 470,283
Bonos del Banco Central de Chile en Pesos,
       6.000%, due 02/01/21 140,000,000 305,059
       6.000%, due 03/01/22 70,000,000 153,197
  4,249,570
China — 0.19%
China Government Bond,
       2.480%, due 12/01/20 CNY 3,500,000 547,895
Colombia — 2.43%
Republic of Colombia,
       4.375%, due 07/12/21 $ 1,500,000 1,680,000
       4.375%, due 03/21/23 COP 395,000,000 227,759
       6.125%, due 01/18/41 $ 150,000 191,625
       7.375%, due 09/18/37 575,000 833,750
       7.750%, due 04/14/21 COP 1,530,000,000 1,079,344
       8.125%, due 05/21/24 $ 250,000 365,000
       9.850%, due 06/28/27 COP 3,200,000,000 2,794,316
  7,171,794
Croatia — 0.19%
Republic of Croatia,
       6.250%, due 04/27/172 $ 500,000 547,500
Dominican Republic — 0.21%
Republic of Dominica,
       7.500%, due 05/06/212 550,000 627,000
El Salvador — 0.39%
Republic of El Salvador,
       7.750%, due 01/24/231 320,000 390,400
       8.250%, due 04/10/321 615,000 768,750
  1,159,150
Hungary — 1.94%
Hungarian Development Bank,
       5.875%, due 05/31/16 EUR 1,200,000 1,661,947
Hungary Government Bond,
       6.000%, due 11/24/23 HUF 200,000,000 907,411
       6.500%, due 06/24/19 90,000,000 429,477
       6.750%, due 02/24/17 70,000,000 337,168
       7.500%, due 11/12/20 380,000,000 1,922,582
       7.625%, due 03/29/41 $ 400,000 465,600
  5,724,185
Indonesia — 5.05%
Indonesia Treasury Bond,
       9.500%, due 07/15/23 IDR 29,400,000,000 3,856,109
       11.750%, due 08/15/23 4,600,000,000 685,985
       12.000%, due 09/15/26   12,215,000,000 1,912,513
Republic of Indonesia,
       4.875%, due 05/05/212 $ 1,080,000 1,217,700
       5.875%, due 03/13/201 740,000 879,675
       6.625%, due 02/17/371 920,000 1,178,750
       7.750%, due 01/17/381 3,135,000 4,533,994
       8.500%, due 10/12/351 400,000 614,000
  14,878,726
Latvia — 0.09%
Republic of Latvia,
       5.250%, due 02/22/171 250,000 277,923
Lithuania — 0.41%
Republic of Lithuania,
       6.125%, due 03/09/211 450,000 540,693
       6.125%, due 03/09/212 250,000 300,385
       6.625%, due 02/01/222 300,000 373,008
1,214,086


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Security description       Face
amount		       Value
Malaysia — 2.37%
Malaysia Government Bond,
       3.197%, due 10/15/15 MYR 10,300,000 $ 3,322,554
       3.580%, due 09/28/18 2,600,000 846,025
       3.892%, due 03/15/27 1,400,000 458,481
       4.262%, due 09/15/16 5,100,000 1,702,435
       4.392%, due 04/15/26 1,900,000 657,080
  6,986,575
Mexico — 4.25%
Mexican Bonos,
       Series M,
       6.500%, due 06/10/21 MXN 10,700,000 926,845
       10.000%, due 11/20/36 2,000,000 234,838
Mexican Udibonos,
       2.500%, due 12/10/209 15,657,197 1,329,787
       4.000%, due 11/15/409 43,057,291 4,415,128
United Mexican States,
       4.750%, due 03/08/44 $ 1,500,000 1,575,000
       6.050%, due 01/11/40 2,030,000 2,552,725
       Series A,
       6.750%, due 09/27/34 450,000 616,500
       7.500%, due 04/08/33 600,000 882,000
  12,532,823
Mongolia — 1.32%
Development Bank of Mongolia LLC,
       5.750%, due 03/21/171 1,500,000 1,552,500
Mongolia Government International Bond,
       4.125%, due 01/05/182 300,000 296,250
       5.125%, due 12/05/222 2,100,000 2,042,250
  3,891,000
Montenegro — 0.75%
Republic of Montenegro,
       7.875%, due 09/14/15 EUR 1,550,000 2,219,690
Nigeria — 1.34%
Nigeria Treasury Bills,
       12.872%, due 09/05/1310 NGN   135,000,000 807,312
       12.681%, due 04/25/1310 65,000,000 402,340
       13.297%, due 03/21/1310 250,000,000 1,567,229
       14.944%, due 11/07/1310 144,500,000 846,182
Republic of Nigeria,
       16.325%, due 04/04/132,10 51,000,000 317,761
  3,940,824
Pakistan — 0.28%
Islamic Republic of Pakistan,
       6.875%, due 06/01/171 $ 250,000 224,375
       7.875%, due 03/31/361 830,000 610,050
  834,425
Peru — 2.68%
Peru Government Bond,
       Series 7, 8.200%, due 08/12/26 PEN 1,442,000 788,056
Republic of Peru,
       5.625%, due 11/18/50 $ 1,750,000 2,091,250
       6.900%, due 08/12/371 PEN 1,750,000 874,433
       6.950%, due 08/12/312 1,750,000 859,733
       7.840%, due 08/12/201 6,700,000 3,284,379
  7,897,851


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Security description       Face
amount		       Value
Philippines — 1.09%
Republic of the Philippines,
       9.125%, due 09/04/16 PHP 110,000,000 $ 3,218,405
Poland — 3.34%
Government of Poland,
       4.000%, due 10/25/23 PLN 5,200,000 1,698,596
       5.000%, due 03/23/22 $ 650,000 745,778
       5.500%, due 10/25/19 PLN 6,000,000 2,168,769
       5.750%, due 09/23/22 14,000,000 5,218,976
  9,832,119
Romania — 0.66%
Romanian Government International Bond,
       5.750%, due 01/27/16 RON 2,200,000 682,497
       6.750%, due 02/07/221 $ 600,000 715,500
       6.750%, due 02/07/222 450,000 536,625
  1,934,622
Russia — 3.37%
Russian Federation,
       5.625%, due 04/04/421 200,000 233,500
       5.625%, due 04/04/422 1,000,000 1,167,500
       7.500%, due 03/31/301,11 35,650 44,429
       7.500%, due 03/31/302,11 1,630,281 2,031,738
       7.600%, due 04/14/21 RUB   155,000,000 5,531,288
       8.150%, due 02/03/27 25,000,000 924,630
  9,933,085
South Africa — 4.35%
Republic of South Africa,
       2.500%, due 01/31/179 ZAR 10,964,971 1,356,281
       2.750%, due 01/31/229 14,816,201 1,929,729
       4.665%, due 01/17/24 $ 1,810,000 1,948,013
       5.500%, due 03/09/20 100,000 114,750
       5.500%, due 12/07/239 ZAR 5,623,551 919,728
       6.750%, due 03/31/21 18,000,000 2,042,382
       7.750%, due 02/28/23 7,000,000 832,069
       8.000%, due 12/21/18 30,000,000 3,678,058
  12,821,010
Sri Lanka — 1.82%
Republic of Sri Lanka,
       6.250%, due 10/04/201 $ 1,700,000 1,850,875
       6.250%, due 10/04/202 550,000 598,813
       6.250%, due 07/27/211 1,100,000 1,190,750
       6.250%, due 07/27/212 1,000,000 1,082,500
       7.400%, due 01/22/151 600,000 649,500
  5,372,438
Thailand — 2.64%
Thailand Government Bond,
       1.200%, due 07/14/219 THB 155,216,880 5,325,651
       2.800%, due 10/10/17 74,900,000 2,470,048
  7,795,699
Turkey — 5.50%
Government of Turkey,
       10.500%, due 01/15/20 TRY 12,100,000 8,393,461
Republic of Turkey,
       5.125%, due 03/25/22 $ 1,450,000 1,631,250
       5.625%, due 03/30/21 1,000,000 1,163,750
       6.000%, due 01/14/41 900,000 1,064,250
       6.250%, due 09/26/22 1,300,000 1,581,125
       6.750%, due 05/30/40 750,000 968,438
       6.875%, due 03/17/36 250,000 323,125
       7.250%, due 03/05/38 250,000 339,687
       7.500%, due 11/07/19 200,000 254,000
       8.000%, due 02/14/34 350,000 505,313
  16,224,399


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Security description       Face
amount		       Value
Ukraine — 0.59%
Financing of Infrastructural Projects State Enterprise,
       8.375%, due 11/03/172 $ 1,150,000 $ 1,127,000
Government of Ukraine,
       9.250%, due 07/24/172 550,000 598,125
  1,725,125
Uruguay — 0.07%
Oriental Republic of Uruguay,
       6.875%, due 09/28/25 150,000 201,750
Venezuela — 4.18%
Republic of Venezuela,
       6.000%, due 12/09/201 500,000 431,250
       7.000%, due 03/31/381 3,250,000 2,632,500
       7.650%, due 04/21/25 2,850,000 2,572,125
       7.750%, due 10/13/191 150,000 145,500
       8.250%, due 10/13/241 3,400,000 3,213,000
       9.250%, due 09/15/27 500,000 506,250
       9.250%, due 05/07/281 280,000 275,800
       9.375%, due 01/13/34 2,550,000 2,556,375
  12,332,800
Vietnam — 0.17%
Socialist Republic of Vietnam,
       6.750%, due 01/29/201 200,000 229,500
       6.875%, due 01/15/161 250,000 275,000
  504,500
Zambia — 0.14%
Republic of Zambia,
       5.375%, due 09/20/222 400,000 407,500
Total Non-US government obligations
       (cost $179,298,654) 201,296,589
Convertible bond — 1.21%
China — 1.21%
China Petroleum & Chemical Corp.,
       8.064%, due 04/24/1410
       (cost $3,264,360) HKD   23,000,000 3,558,811
Structured notes — 9.23%
Ghana — 1.03%
Citigroup Funding Inc,
       14.990%, due 03/14/131,10
       (linked to Ghana Government Bonds,
       14.990%, due 03/14/13) $ 900,000 599,019
       14.990%, due 03/13/131,10
       (linked to Ghana Government Bonds,
       14.990%, due 03/13/13) 900,000 602,698
       14.990%, due 03/14/131,10
       (linked to Ghana Government Bonds,
       14.990%, due 03/14/13) 1,100,000 733,537
       23.000%, due 08/23/172,10
       (linked to Ghana Government Bonds,
       23.000%, due 08/23/17) 1,750,000 1,128,618
3,063,872


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Security description       Face
amount		       Value
India — 4.59%
Standard Chartered Bank,
       7.830%, due 04/13/182
       (linked to Indian Government Bonds,
       7.830%, due 04/13/18) $ 2,496,960 $ 2,517,230
       8.130%, due 09/23/222
       (linked to Indian Government Bonds,
       8.130%, due 09/23/22) 5,918,535 5,979,175
       8.130%, due 09/23/222
       (linked to Indian Government Bonds,
       8.130%, due 09/23/22) 3,235,610 3,226,650
       8.130%, due 09/23/222
       (linked to Indian Government Bonds,
       8.130%, due 09/23/22) 1,792,460 1,803,164
  13,526,219
Nigeria — 0.98%
Credit Suisse International,
       15.644%, due 02/21/132,10
       (linked to Nigeria Treasury Bill,
       15.644%, due 02/21/13) NGN   103,000,000 650,686
HSBC Bank PLC,
       15.665%, due 03/30/132,10
       (linked to Nigeria Treasury Bill,
       15.655%, due 03/30/13) $ 1,898,735 1,872,533
Republic of Nigeria,
       16.288%, due 03/07/132,10
       (linked to Nigeria Treasury Bill,
       16.288%, due 03/07/13) NGN 58,000,000 364,649
  2,887,868
Serbia — 1.10%
Citigroup Funding Inc.,
       13.000%, due 02/25/132,10
       (linked to Serbian Treasury Bill,
       13.000%, due 02/25/13) $ 2,850,000 3,246,720
Sri Lanka — 1.53%
Citigroup Funding Inc.,
       5.800%, due 07/20/172
       (linked to Sri Lanka Government Bonds,
       5.800%, due 07/20/17) LKR 110,000,000 715,788
       8.000%, due 06/20/172
       (linked to Sri Lanka Government Bonds,
       8.000%, due 06/20/17) 240,000,000 1,707,732
       8.500%, due 02/06/182
       (linked to Sri Lanka Government Bonds,
       8.500%, due 02/06/18) 80,000,000 558,177
       8.500%, due 04/01/182
       (linked to Sri Lanka Government Bonds,
       8.500%, due 04/01/18) 218,000,000 1,521,031
  4,502,728
Total structured notes (cost $27,277,493) 27,227,407
Total bonds (cost $263,370,287) 284,337,719


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Security description       Shares       Value
Short-term investment — 1.17%    
Investment company — 1.17%
UBS Cash Management Prime Relationship Fund12
       (cost $3,439,241) 3,439,241 $ 3,439,241
 
Face amount
covered by
contracts
Options Purchased* — 0.12%
Call Options — 0.04%
Foreign Exchange Option, Buy USD/MYR,
       strike @ MYR 3.22,
       expires March 2013 $ 2,430,000 5,054
Foreign Exchange Option, Buy USD/MYR,
       strike @ MYR 3.09,
       expires April 2013 2,290,000 42,562
Foreign Exchange Option, Buy USD/RUB,
       strike @ RUB 31.01,
       expires March 2013 2,750,000 15,151
Foreign Exchange Option, Buy USD/RUB,
       strike @ RUB 31.03,
       expires March 2013 1,380,000 7,186
Foreign Exchange Option, Buy USD/SAR,
       strike @ SAR 3.75,
       expires July 2013 10,587,500 19,268
Foreign Exchange Option, Buy USD/TRY,
       strike @ TRY 1.87,
       expires February 2013 2,310,000 0
Foreign Exchange Option, Buy USD/TRY,
       strike @ TRY 1.80,
       expires March 2013 2,300,000 8,533
Foreign Exchange Option, Buy USD/TRY,
       strike @ TRY 1.81,
       expires March 2013 1,380,000 3,961
101,715
Put Options — 0.08%
Foreign Exchange Option, Buy USD/CLP,
       strike @ CLP 469.00,
       expires February 2013 2,780,000 10,654
Foreign Exchange Option, Buy USD/CLP,
       strike @ CLP 468.00,
       expires February 2013 2,780,000 8,528
Foreign Exchange Option, Buy USD/CLP,
       strike @ CLP 468.00,
       expires February 2013 1,390,000 4,264
Foreign Exchange Option, Buy USD/KRW,
       strike @ KRW 1,080.00,
       expires February 2013 3,660,000 111
Foreign Exchange Option, Buy USD/KRW,
       strike @ KRW 1,088.00,
       expires February 2013 3,290,000 3,456
Foreign Exchange Option, Buy USD/KRW,
       strike @ KRW 1,059.00,
       expires February 2013 3,470,000 27
Foreign Exchange Option, Buy USD/KRW,
       strike @ KRW 1,059.00,
       expires February 2013 3,630,000 55
Foreign Exchange Option, Buy USD/KRW,
       strike @ KRW 1,060.00,
       expires February 2013 3,480,000 124


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Security description       Face amount
covered by
contracts		       Value
Foreign Exchange Option, Buy USD/KRW,
       strike @ KRW 1,052.00,
       expires February 2013 $ 3,200,000 $ 109
Foreign Exchange Option, Buy USD/KRW,
       strike @ KRW 1,052.00,
       expires February 2013 3,660,000 263
Foreign Exchange Option, Buy USD/KRW,
       strike @ KRW 1,042.00,
       expires February 2013 4,800,000 143
Foreign Exchange Option, Buy USD/MXN,
       strike @ MXN 12.63,
       expires February 2013 2,190,000 479
Foreign Exchange Option, Buy USD/MXN,
       strike @ MXN 12.65,
       expires February 2013 2,780,000 1,102
Foreign Exchange Option, Buy USD/MYR,
       strike @ MYR 2.97,
       expires March 2013 2,430,000 1,580
Foreign Exchange Option, Buy USD/MYR,
       strike @ MYR 3.09,
       expires April 2013 2,290,000 22,025
Foreign Exchange Option, Buy USD/RUB,
       strike @ RUB 29.90,
       expires February 2013 3,350,000 929
Foreign Exchange Option, Buy USD/RUB,
       strike @ RUB 29.97,
       expires February 2013 3,200,000 2,213
Foreign Exchange Option, Buy USD/RUB,
       strike @ RUB 30.00,
       expires February 2013 4,590,000 21,047
Foreign Exchange Option, Buy USD/RUB,
       strike @ RUB 30.05,
       expires February 2013 3,480,000 21,279
Foreign Exchange Option, Buy USD/RUB,
       strike @ RUB 29.69,
       expires March 2013 2,750,000 12,719
Foreign Exchange Option, Buy USD/RUB,
       strike @ RUB 29.72,
       expires March 2013 1,380,000 6,870
Foreign Exchange Option, Buy USD/SAR,
       strike @ SAR 3.75,
       expires July 2013 10,587,500 7,420
Foreign Exchange Option, Buy USD/TRY,
       strike @ TRY 1.75,
       expires February 2013 3,660,000 8,424
Foreign Exchange Option, Buy USD/TRY,
       strike @ TRY 1.75,
       expires February 2013 4,590,000 12,495
Foreign Exchange Option, Buy USD/TRY,
       strike @ TRY 1.76,
       expires February 2013 3,660,000 11,751
Foreign Exchange Option, Buy USD/TRY,
       strike @ TRY 1.77,
       expires February 2013 3,680,000 20,900
Foreign Exchange Option, Buy USD/TRY,
       strike @ TRY 1.74,
       expires March 2013 2,300,000 8,142


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Security description       Face amount
covered by
contracts		       Value
Foreign Exchange Option, Buy USD/TRY,
       strike @ TRY 1.75,
       expires March 2013 $ 1,380,000 $ 5,906
Foreign Exchange Option, Buy USD/ZAR,
       strike @ ZAR 8.89,
       expires February 2013 1,170,000 6,107
Foreign Exchange Option, Buy USD/ZAR,
       strike @ ZAR 8.92,
       expires February 2013 2,930,000 19,643
Foreign Exchange Option, Buy USD/ZAR,
       strike @ ZAR 8.95,
       expires February 2013 1,840,000 15,560
Foreign Exchange Option, Buy USD/ZAR,
       strike @ ZAR 8.95,
       expires February 2013 1,340,000 11,332
  245,657
Total options purchased
       (cost $690,091) 347,372
Total investments13 — 97.73%
       (cost $267,499,619) 288,124,332
Cash and other assets,
       less liabilities — 2.27% 6,684,439
Net assets — 100.00% $ 294,808,771

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 $ 31,801,981
Gross unrealized depreciation   (11,177,268 )
Net unrealized appreciation of investments $ 20,624,713

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 — January 31, 2013 (unaudited)

Forward foreign currency contracts

Counterparty Contracts to deliver     In exchange for     Maturity
date		     Unrealized
appreciation/
(depreciation)
BB BRL 470,000 EUR 177,627 02/04/13 $ 5,161
BB COP  2,863,660,000 USD 1,582,570 03/14/13 (25,559 )
BB CZK 6,607,000 USD 345,916 02/08/13 (3,667 )
BB MXN 18,650,000 USD 1,472,039 02/06/13 5,531
BB MXN 8,890,000 USD 695,972 04/04/13 875
BB SGD 315,000 USD 257,416 07/08/13 2,908
BB USD 9,873,844 CNY 61,909,000 03/14/13 65,021
BB USD 367,997 HUF 79,732,000 04/02/13 (526 )
BB USD 6,134,884 IDR  60,060,516,958 03/14/13 7,445
BB USD 2,805,103 INR 155,980,000 03/14/13 106,059
BB   USD 220,864 MXN 2,809,500 02/06/13 56
BB USD 515,269 MXN 6,543,000 02/06/13 (773 )
BB USD 3,264,131 MXN 41,224,000 03/14/13 (33,884 )
BB USD 1,599,991 MXN 20,253,000 04/04/13 (16,435 )
BB USD 1,183,061 MXN 15,097,000 04/08/13 (3,128 )
BB USD 819,030 MXN 10,530,000 04/08/13 3,961
BB USD 7,427,790 MYR 22,790,687 03/14/13 (111,351 )
BB USD 220,871 MYR 690,000 04/30/13   (64 )
BB USD 618,115 PHP 25,250,000 03/14/13 2,498
BB USD 183,995 RUB 5,587,000 03/29/13 607
BB USD 256,031 SGD 315,000 07/08/13 (1,523 )
BB USD 6,451,240 TRY 11,679,324 03/14/13   159,321
BB USD 6,014,545 TWD 175,490,872 03/14/13 (69,665 )
CSI BRL 29,018,994 USD 13,432,232 03/14/13 (1,080,793 )
CSI CNY 11,050,000 USD 1,759,975 03/14/13 (13,991 )
CSI CZK 13,253,000 USD 700,261 02/08/13 (968 )
CSI USD 1,045,186 CZK 19,860,000 02/08/13 5,626
CSI USD 3,090,297 KRW   3,350,191,100 03/14/13 (20,440 )
CSI USD 182,037 MXN 2,341,000 04/08/13 928
CSI CLP 1,918,500,000 USD 3,993,381 03/14/13 (54,445 )
CSI EUR 295,994 BRL 798,000   02/04/13 (1,168 )
CSI PEN 5,150,000 USD 2,001,166 03/14/13 6,346
DB BRL 3,155,000 EUR 1,184,087 02/04/13 23,401
DB BRL 77,000 USD 36,684 02/04/13 (1,983 )
DB BRL 2,820,000 USD 1,369,065 03/14/13 (41,278 )
DB BRL 2,244,000 USD 1,093,141 04/04/13 (26,014 )
DB EUR 1,065,593 BRL 2,866,000 02/04/13 (7,638 )
DB INR 423,340,000 USD 7,680,715 03/14/13 (220,369 )
DB MXN 27,968,000 USD 2,200,922 04/08/13 15,032
DB PLN 9,240,000 USD 2,934,638 03/14/13 (43,798 )
DB THB 32,760,000 USD 1,062,774 03/14/13 (33,325 )
DB USD 909,931 BRL 1,869,000 04/04/13 22,199
DB USD 3,384,978 CNY 21,280,000 03/14/13 31,311
DB USD 5,246,707 HUF 1,147,087,499 03/14/13 52,457
DB USD 7,721,812 MXN 101,178,900 03/14/13 206,406
DB USD 696,027   MXN 8,953,000 04/04/13 3,996
DB USD 2,852,651 MYR 8,710,000 03/14/13 (56,501 )
DB USD 8,347,113 PLN 26,755,000 03/14/13 277,134
DB USD 3,456,149 THB 106,708,590 03/14/13 114,156
GSI KRW   3,034,351,600 USD 2,813,492 03/14/13 33,046
GSI PHP 34,200,000 USD 846,116 03/14/13 5,524
GSI RUB 5,587,000 USD 184,450 03/29/13 (151 )
GSI USD 181,774 BRL 375,000 04/04/13 5,250
GSI USD 2,866,111 KRW 3,034,351,600 03/14/13 (85,665 )
GSI USD 277,564 MYR 865,000 03/18/13 45
GSI USD 3,344,702 RUB 105,327,999 03/14/13 144,265
GSI USD 4,812,291 ZAR 43,070,000 03/14/13 (20,946 )
JPMCB RON 1,400,000 USD 419,099 03/14/13 (12,253 )
JPMCB ZAR 22,550,000 USD 2,630,014 03/14/13 121,427
MLI BRL 2,977,000 EUR 1,119,173 02/04/13 24,647
MLI EUR 1,119,154 BRL 3,015,000 02/04/13 (5,539 )
MSCI EUR 5,775,000 USD 7,704,976 04/15/13 (139,264 )
Net unrealized depreciation on forward foreign currency contracts $ (680,465 )


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Futures contracts

        Expiration
date		       Cost/
(proceeds)		       Value       Unrealized
appreciation/
(depreciation)
US Treasury futures buy contracts:
5 Year US Treasury Notes, 30 contracts
       (USD) March 2013 $ 3,737,381 $ 3,712,031 $        (25,350 )
10 Year US Treasury Notes, 195 contracts
       (USD) March 2013 25,829,892 25,599,844 (230,048 )
US Treasury futures sell contracts:
US Long Bond, 45 contracts (USD) March 2013 (6,672,211 ) (6,456,094 ) 216,117
Net unrealized depreciation on futures contracts $ (39,281 )

Options written

Expiration
date		       Premiums
received		       Value
Call options
Foreign Exchange Option, Sell USD/BRL, USD 2,270,000 face amount
covered by contracts, strike @ BRL 2.09 April 2013 $ 17,025 $ (9,091 )
Foreign Exchange Option, Sell USD/BRL, USD 1,840,000 face amount
covered by contracts, strike @ BRL 2.06 May 2013 16,555 (16,555 )
Foreign Exchange Option, Sell USD/HUF, USD 2,760,000 face amount
covered by contracts, strike @ HUF 225.00 March 2013 25,797 (25,358 )
Foreign Exchange Option, Sell USD/MXN, USD 1,380,000 face
amount covered by contracts, strike @ MXN 12.95 March 2013 5,851 (5,851 )
Foreign Exchange Option, Sell USD/MYR, USD 2,430,000 face
amount covered by contracts, strike @ MYR 3.12 March 2013 23,838 (23,838 )
Foreign Exchange Option, Sell USD/MYR, USD 4,120,000 face
amount covered by contracts, strike @ MYR 3.21 April 2013 10,703 (25,637 )
Put options
Foreign Exchange Option, Sell USD/CLP, USD 2,780,000 face amount
covered by contracts, strike @ CLP 463.50 February 2013 4,698 (3,307 )
Foreign Exchange Option, Sell USD/HUF, USD 2,760,000 face amount
covered by contracts, strike @ HUF 210.00 March 2013 15,686 (19,054 )
Foreign Exchange Option, Sell USD/MXN, USD 1,380,000 face
amount covered by contracts, strike @ MXN 12.50 March 2013 4,733 (4,733 )
Foreign Exchange Option, Sell USD/MYR, USD 2,430,000 face
amount covered by contracts, strike @ MYR 3.12 March 2013 23,838 (23,838 )
Foreign Exchange Option, Sell USD/MYR, USD 4,120,000 face
amount covered by contracts, strike @ MYR 2.99 April 2013 9,828 (6,021 )
Foreign Exchange Option, Sell USD/RUB, USD 4,590,000 face amount
covered by contracts, strike @ RUB 29.70 February 2013 6,610 (6,933 )
Foreign Exchange Option, Sell USD/RUB, USD 3,480,000 face amount
covered by contracts, strike @ RUB 29.75 February 2013 8,805 (8,580 )
Foreign Exchange Option, Sell USD/TRY, USD 3,680,000 face amount
covered by contracts, strike @ TRY 1.75 February 2013 4,747 (6,711 )
Foreign Exchange Option, Sell USD/ZAR, USD 1,840,000 face amount
covered by contracts, strike @ ZAR 8.79 February 2013 2,705 (3,851 )
Foreign Exchange Option, Sell USD/ZAR, USD 1,170,000 face amount
covered by contracts, strike @ ZAR 8.76 February 2013 1,849 (1,839 )
Foreign Exchange Option, Sell USD/ZAR, USD 2,930,000 face amount
covered by contracts, strike @ ZAR 8.77 February 2013 4,424 (5,076 )
Total options written $ 187,692 $ (196,273 )


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Foreign exchange written option activity for the period ended January 31, 2013 was as follows:

Premiums
received
Foreign exchange options outstanding at October 31, 2012 $     43,987
Foreign exchange options written (446,153 )
Foreign exchange options terminated in closing purchase transactions 589,858
Foreign exchange options expired prior to exercise -  
Foreign exchange options outstanding at January 31, 2013 $ 187,692

Currency swap agreements
 
Counterparty   Pay
contracts		   Receive
contracts		   Termination
date		   Pay
rate14		   Receive
rate14		   Upfront
payments
made		     Value   Unrealized
appreciation/
(depreciation)
BB INR 308,000,000 USD 5,966,670 12/05/16 4.500% 6 month
USD LIBOR		 $ - $ 360,950 $          360,950 3
BB PHP 85,653,500 USD 2,085,803 12/18/15 1.300 6 month
USD LIBOR		 - (35,915 ) (35,915 )
CITI USD 3,206,107 COP 6,300,000,000 06/11/13 6 month
USD LIBOR		 5.250% - 385,403 385,403
$ - $ 710,438 $ 710,438

Interest rate swap agreements
 
Counterparty    Notional amount    Termination
date		    Payments made
by the Fund14		    Payments
received by the
Fund14		    Upfront
payments
made		    Value    Unrealized
appreciation/
(depreciation)
BB KRW 3,250,000,000 08/19/16 3.530% 3 month CD KSDA $ - $ (60,033 ) $       (60,033 )
BB MYR 10,700,000 08/23/22 3 month KLIBOR 3.880% - (71,443 ) (71,443 )
CITI KRW   2,900,000,000 08/26/16 3.410 3 month CD KSDA - (44,405 ) (44,405 )
CITI MYR 1,950,000 08/24/15 3 month KLIBOR 3.505 - 3,420 3,420
CITI MYR 14,550,000 08/23/22 3 month KLIBOR 3.860 - (100,972 ) (100,972 )
DB MYR 7,650,000 08/24/15 3 month KLIBOR 3.500 - 13,089 13,089
DB MYR 20,450,000 08/23/22 3 month KLIBOR 3.860 - (141,916 ) (141,916 )
DB TWD 85,000,000 08/22/16 1.325 3 month TWCPBA - (26,303 ) (26,303 )
GSI TWD 85,500,000 08/26/16 1.280 3 month TWCPBA - (22,410 ) (22,410 )
MLI MXN 7,200,000 11/16/28 28 day MXIBTIIE 8.830 - 152,487 152,487
MLI MXN 7,000,000 11/21/28 28 day MXIBTIIE 8.610 - 136,995 136,995
$ - $ (161,491 ) $ (161,491 )


Credit default swaps on credit indices — buy protection15
 
Counterparty   Referenced Index16    Notional amount   Termination
date		   Payments
made by the
Fund14		   Upfront
payments
received		   Value   Unrealized
depreciation
BB   CDX.EM Series 18 Index USD       2,350,000 12/20/17 5.000% $ 282,470 $ (293,764 ) $      (11,294 )
DB CDX.EM Series 17 Index USD 1,900,000 06/20/17 5.000 207,100   (223,417 )   (16,317 )
GSI CDX.EM Series 18 Index USD 4,050,000 12/20/17 5.000 470,775 (506,274 ) (35,499 )
MLI CDX.EM Series 18 Index USD 1,100,000 12/20/17 5.000 128,700 (137,507 )   (8,807 )
$ 1,089,045 $ (1,160,962 ) $ (71,917 )
 
Credit default swaps on sovereign issues — buy protection15  
 
Counterparty    Referenced Obligation16   Notional amount    Termination
date		    Payments
made by the
Fund14		    Upfront
payments
made		    Value   Unrealized
depreciation
  Republic of Venezuela    
bond, 9.250%, due
CSI 09/15/27   USD 1,450,000   12/20/17   5.000%   $168,784   $76,005     $   (92,779 )

Credit default swaps on sovereign issues — sell protection17
 
Counterparty    Referenced
Obligation16		    Notional amount    Termination
date		    Payments
received by
the Fund14		    Upfront
payments
received		    Value    Unrealized
appreciation		    Credit
spread18
BB Federation  of  Russia bond, 2.250%,
due 03/31/30		 USD 2,900,000 12/20/22 1.000% $ 277,973 $ (240,418 ) $ 37,555 2.000%
BB Federal Republic of Brazil bond, 12.250%, due 03/06/30 USD 180,000 06/20/22 1.000 14,775 (7,988 ) 6,787 1.551
CSI United Mexican States bond, 7.500%, due 04/08/33 USD  1,000,000 02/20/14 4.170 - 60,218 60,218 0.309
DB Federal Republic of Brazil bond, 12.250%,
due 03/06/30		 USD 800,000 06/20/22 1.000 64,908 (35,504 ) 29,404 1.551
$ 357,656 $ (223,692 ) $ 133,964

The following is a summary of the fair valuations according to the inputs used as of January 31, 2013 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
Corporate bonds $ – $ 52,254,463 $ 449 $ 52,254,912
Non-US government obligations – 201,296,589 – 201,296,589
Convertible bond – 3,558,811 – 3,558,811
Structured notes – 27,227,407 – 27,227,407
Short-term investment – 3,439,241 – 3,439,241
Options purchased – 347,372 – 347,372
Forward foreign currency contracts, net – (680,465 ) – (680,465 )
Futures contracts, net (39,281 ) – – (39,281 )
Options written – (196,273 ) – (196,273 )
Swap agreements, net – (759,702 ) – (759,702 )
Total $ (39,281 ) $ 286,487,443 $ 449 $ 286,448,611

Level 3 rollforward disclosure

The following is a rollforward of the Fund’s investments that were valued using unobservable inputs for the period:

      Corporate bonds
Assets
Beginning balance $       440
Purchases -
Issuances -
Sales -
Accrued discounts (premiums)   -
Total realized gain/(loss) -
Change in net unrealized appreciation/depreciation   9
Net transfers into Level 3 -
Net transfers out of Level 3 -
Ending balance $ 449

The change in net unrealized appreciation/depreciation relating to the Level 3 investments held at January 31, 2013 was $9.


Global High Income Fund Inc.

Portfolio of investments — January 31, 2013 (unaudited)

Portfolio footnotes

*       Non-income producing security.
1   Security exempt from registration pursuant to Regulation S under the Securities Act of 1933. Regulation S applies to securities offerings that are made outside of the United States and do not involve direct selling efforts in the United States. At January 31, 2013, the value of these securities amounted to $50,167,140 or 17.02% of net assets.
2   Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities are considered liquid, unless noted otherwise, and may be resold in transactions exempt from registration, normally to qualified institutional buyers. At January 31, 2013, the value of these securities amounted to $54,211,419 or 18.39% of net assets.
3   Security is illiquid. At January 31, 2013, the value of these securities and other illiquid derivative instruments amounted to $1,908,645 or 0.65% of net assets.
4   Security linked to closed-end fund or structured investment vehicle.
5   Security held past stated maturity date due to defaulted status. Bond is being traded based on potential future claim.
6   Security is in default.
7   Variable or floating rate security — The interest rate shown is the current rate as of January 31, 2013 and changes periodically.
8   Security pays, when required, a floating rate that is determined annually based on the Argentina GDP.
9   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.
10   Rate shown reflects annualized yield at January 31, 2013 on zero coupon bond.
11   Step bond — Coupon rate increases in increments to maturity. Rate disclosed is as of January 31, 2013. Maturity date disclosed is the ultimate maturity date.
12   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
10/31/12		    Purchases
during the
three months ended
01/31/13		    Sales
during the
three months ended
01/31/13		    Value
01/31/13		    Net income
earned from
affiliate for the
three months ended
01/31/13
UBS Cash Management Prime
Relationship Fund		 $ 11,067,701 $ 18,975,247 $ 26,603,707 $ 3,439,241 $ 4,554
 
13       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 securities and other instruments 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 securities or instruments. 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 securities or instruments. Securities and other instruments also may be valued based on appraisals derived from information concerning the security or instrument or similar securities or instruments received from recognized dealers in those holdings. Securities and instruments 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. Securities and instruments 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 securities or instruments are traded on more than one exchange, the securities or instruments are valued on the exchange designated as the primary market by UBS Global Asset Management (Americas) Inc. (“UBS Global AM” or the “Advisor”), the investment advisor of the Fund. If a market value is not readily available from an independent pricing source for a particular security or instrument, that security or instrument is valued at fair value as determined in good faith by or under the direction of the Fund’s Board. Various factors may be reviewed in order to make a good faith determination of a security’s or instrument’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 securities or instruments; and the evaluation of forces which influence the market in which the securities or instruments are purchased and sold. Certain securities or instruments 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 securities or instruments, the Fund may adjust the previous closing prices to reflect what is believed to be the fair value of these securities or instruments 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 nonregistered investment companies are also valued at the daily net asset value.
14 Payments made or received are based on the notional amount.
15 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 less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
16 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.
17 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 less the recovery value of the referenced obligation.
18 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. Credit spreads are unaudited.


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 securities or instruments that have been fair valued, valued pursuant to standing instructions approved by the GVC, or where non-vendor pricing sources had been used to make fair value determinations when sufficient information exists during the prior quarter. Fair valuation determinations are subject to review at least monthly by the GVC during scheduled meetings. Pricing decisions, processes, and controls over fair value determinations are subject to internal and external reviews, including annual internal compliance reviews and periodic internal audit reviews.

The types of securities or instruments for which such fair value pricing may be necessary include, but are not limited to: foreign securities and instruments under some circumstances, as discussed below, securities of an issuer that has entered into a restructuring; securities or instruments 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 securities or instruments that are restricted as to transfer or resale. The need to fair value a Fund’s portfolio securities and other instruments may also result from low trading volume in foreign markets or thinly traded domestic securities or instruments, and when a security 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 a security’s or instrument’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 securities or instruments; and the evaluation of forces which influence the market in which the securities or instruments are purchased and sold. Valuing securities and other instruments at fair value involves greater reliance on judgment than valuing securities and other instruments 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 May 2011, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2011-04 “Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and International Financial Reporting Standards (“IFRS”)” (“ASU 2011-04”). ASU 2011-04 includes common requirements for measurement of and disclosure about fair value between US GAAP and IFRS. ASU 2011-04 requires reporting entities to disclose the following information for fair value measurements categorized within Level 3 of the fair value hierarchy: quantitative information about the unobservable inputs used in the fair value measurement, the valuation processes used by the reporting entity and a narrative description of the sensitivity of the fair value measurement to changes in unobservable inputs and the interrelationships between those unobservable inputs. In addition, ASU 2011-04 requires reporting entities to make disclosures about amounts and reasons for all transfers in and out of Level 1 and Level 2 fair value measurements. The new disclosures have been implemented for annual and interim periods beginning after December 15, 2011. At January 31, 2013, there were no transfers between Level 1 and Level 2 for the Fund.

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, 2012.


Portfolio acronyms
GDP Gross Domestic Product
CD KSDA Korean Securities Dealer Association 91-day Certificate of Deposit 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
CSI Credit Suisse International
CITI Citibank NA
DB Deutsche Bank AG
GSI Goldman Sachs International
HSBC HSBC Bank PLC
JPMCB JPMorgan Chase Bank
MLI Merrill Lynch International
MSCI Morgan Stanley & Co. International PLC
Currency abbreviations
BRL Brazilian Real
CLP Chilean Peso
CNY Chinese Yuan
COP Colombian Peso
CZK Czech Koruna
EUR Euro
HKD Hong Kong Dollar
HUF Hungarian Forint
IDR Indonesian Rupiah
INR India Rupee
KRW Korean Won
LKR Sri Lanka Rupee
MXN Mexican Peso
MYR Malaysian Ringgit
NGN Nigerian Naira
PEN Peru Nuevo Sol
PHP Philippine Peso
PLN Polish Zloty
RON Romanian Lei
RUB Russian Ruble
SAR Saudi Arabian Riyal
SGD Singapore Dollar
THB Thai Baht
TRY Turkish Lira
TWD New Taiwan Dollar
UAH Ukrainian Hryvna
USD United States Dollar
ZAR South African Rand


Item 2. Controls and Procedures.

       (a)       The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (“Investment Company Act”)) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document.
 
(b) The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

       (a)       Certifications of principal executive officer and principal financial officer of registrant pursuant to Rule 30a-2(a) under the Investment Company Act is attached hereto as Exhibit EX-99.CERT.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Global High Income Fund Inc.

By:          /s/ Mark E. Carver
Mark E. Carver
President
 
Date:       April 1, 2013

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

By:          /s/ Mark E. Carver
Mark E. Carver
President
 
Date:       April 1, 2013

By:          /s/ Thomas Disbrow
Thomas Disbrow
Vice President and Treasurer
 
Date:       April 1, 2013