Investment Overview (continued)

Message from the Portfolio Managers

World Equity Portfolio
(68.3% of total leveraged assets)

The Fund’s equity portfolio is invested primarily in 60 to 90 world equity securities, consisting primarily of the highest dividend-yielding stocks selected from the current holdings of other accounts managed by the Investment Manager. The equity portfolio is broadly diversified in both developed and emerging market countries and across the capitalization spectrum. As of March 31, 2006, examples included Barclays PLC, which provides commercial and investment banking, insurance, financial and asset management services, and operates branches in more than 60 countries worldwide; National Grid PLC, which owns, operates, and develops electricity and gas networks throughout the U.K. and in the northeastern United States; Taiwan Semiconductor Manufacturing Company, which engages in the design, manufacturing, sale, packaging, and testing of integrated circuits and other semiconductor devices; and Statoil, Norway’s largest oil and gas company, which is one of the largest net sellers of crude oil in the world and a major supplier of natural gas to the European continent.

Companies held in the world equity portfolio are based in both developed-market and emerging-market regions around the world. As of March 31, 2006, 31.5% of these companies were based in North America, 19.7% were in continental Europe (not including the U.K.), 17.0% were in the U.K., 10.7% were in Asia, 11.7% were in Australia and New Zealand, 4.7% were in Latin America, and 4.7% were in Africa and the Middle East. The world equity portfolio is similarly well diversified across a number of industry sectors. The top two sectors, by weight, at March 31, 2006, were financials (28.2%), which includes banks, insurance companies, and financial services companies, and telecommunications services (20.0%), a sector that encompasses those industries that provide voice, data, and video communications services. Other sectors include consumer discretionary, consumer staples, energy, health care, information technology, utilities and industrials. The average dividend yield on the world equity portfolio was 5.3% as of the end of the first quarter of 2006.

World Equity Market Review

A sharp rally in global stocks marked the first quarter of 2006, including a mid-quarter sell-off before the mid-March bounce-back. The mid-quarter sell-off was attributed to concerns over the sustainability of global growth and worries that the monetary tightening around the world (particularly in Japan, where rates have essentially been at zero for many years) would lead to a global reduction in investor risk tolerance. However, a continuation of strong profit growth, coupled with robust merger and acquisition activity (particularly in Europe), aided the overall rally in the global markets. In fact, the first quarter witnessed over $800 billion worth of global merger and acquisition activity. The largest deal was AT&T’s $67 billion offer for BellSouth. Subsequently, the telecom services sector outpaced the overall U.S. market. In addition, Europe’s utility sector saw significant merger activity when Germany’s E.ON offered 29 billion euros for Spain’s Endesa. From a sector perspective, energy, which had dominated index performance in 2005, performed modestly better than the global broad market, as oil prices failed to surpass last year’s records. Telecom services, 2005’s worst performing sector, performed well in the first quarter of 2006, driven by gains in U.S. telecoms. The materials sector was the best performer, while technology, health care, and consumer staples lagged. The Japanese market, which had soared during the second half of 2005 on expectations that its economy was finally emerging from a long malaise, lagged the global broad market, as the Central Bank of Japan halted its policy of flooding the economy with funds to fight deflation, and the Livedoor securities fraud weighed on the market. On the positive side, economic reports from Japan continue to be strong, U.S. stocks had their best performance in five quarters and, in Europe, takeover speculation helped stocks advance in the face

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Lazard World Dividend & Income Fund, Inc.

Investment Overview (continued)

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of forecasts for slower earnings growth and the European Central Bank’s second interest-rate increase in three months.

Global small caps continued to perform well and have now had positive absolute local-currency performance in eleven out of the last twelve quarters. European small caps led performance, while Japanese small caps were flat for the quarter, having declined sharply in January due to after effects of the Livedoor securities fraud. Emerging markets equities concluded the first quarter with very solid returns, aided by the heightened interest in the asset class. Eastern European equities posted the best performance. Latin American and Asian markets lagged, but still generated positive returns.

What Helped and What Hurt LOR

During the first quarter of 2006, materials stocks rose sharply. The Fund’s Brazilian iron- and steel-producer holdings, such as Cia Siderurgica Nacional (CSN), Gerdau, and Caemi Mineracao did substantially better than did the broad market, due to the continued robust global demand for commodities. Financials also benefited portfolio performance, as the shares of Norwegian bank, Den norske Bank (DnB NOR), rose. High oil prices have helped support the Norwegian economy, driving loan growth and rising fee income for DnB. Financial services company Bradford & Bingley (UK) also performed well during the quarter on news it may be bought by a larger rival. The stock was subsequently sold from the portfolio, in March, after it rose significantly. Energy contributed to performance as this sector performed well on the continued rise in the price of oil during the first quarter. Of the world equity portfolio’s oil stocks, Statoil (Norway), in particular, performed very well.

Conversely, telecommunications detracted from performance, as Telecom New Zealand declined due to fears that the potential increased regulation regarding broadband pricing would hurt company profits. In addition, the New Zealand dollar fell sharply versus all major world currencies during the first quarter. However Telecom New Zealand trades at an attractive valuation and has a trailing 9% dividend yield.

Emerging Market Currency and Debt Portfolio (31.5% of total leveraged assets)

The Fund also seeks enhanced income through investing in high-yielding, short-duration¹ (typically, under one-year) emerging market forward currency contracts and local currency debt instruments. As of March 31, 2006, this portfolio consisted primarily of forward currency contracts (79.2%), and a smaller allocation to sovereign debt obligations (16.4%) and structured notes (4.4%) . The average duration of the emerging market currency and debt portfolio was approximately 5.3 months, with an average yield of 8.1% .

At the end of the first quarter of 2006, the Fund’s emerging market currency and debt holdings were highly diversified across 31 countries within Eastern Europe (15.8%), Asia (26.6%), Latin America (19.1%), the Middle East (9.4%), Africa (17.1%), and the commonwealth of Independent States and Baltic countries (12.0%) .

Emerging Market Currency and Debt Market Review

2006 was off to a solid start in emerging markets. Currencies have generally been appreciating, while external debt spreads are near record levels of tightness, and the multi-year emerging-markets equities bull-market run has continued unabated. There is increasing investor confidence in the current environment of strong global expansion alongside controlled inflation.

Accelerating global growth, historically low VIX levels (volatility index used to measure the markets’ levels of satisfaction or anxiety), ongoing soundness of emerging markets fundamentals, record portfolio inflows, and tightening monetary policy biases in place among many emerging markets central banks are all supportive factors for this portfolio’s performance year-to-date. During this global expansionary period, faster export growth from emerging markets has been noted. Many of these mar-

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Lazard World Dividend & Income Fund, Inc.

Investment Overview (continued)

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kets are net commodity exporters. Thus, high prices and a strong Asian growth profile are supportive factors for continued trade surpluses. Many emerging markets continue to post current account surpluses and are benefiting from increased capital (especially equity and overseas worker remittance) inflows. These factors have been associated with local currency appreciation pressures across most of our holdings. Emerging market policymakers are keen to support strengthening domestic demand, in its contributory role, together with net exports, toward sustained growth in gross domestic product. While both currency strength and higher interest rates have a role to play in tightening monetary conditions, locally, there appears to be increasing policymaker tolerance (or even explicit support) for appreciating exchange rates as an alternative or complement to higher official monetary policy rates.

What Helped and Hurt LOR

In keeping with the Fund’s thesis on the risk/return attributes of a diversified local currency market portfolio, it is interesting to note that each of the top five countries contributing to first quarter returns were sourced from a different region of the emerging world. The top contributor was the portfolio’s bullish exposure to Brazil. This country’s trade surplus has gone from strength to strength. The Romanian currency market was also a strong contributor to portfolio returns. Exposure to the Russian ruble was positive, as the Central Bank of Russia permitted a material appreciation of the real effective exchange rate during the first quarter to counter domestic inflationary pressure. The Indonesian currency market contributed to performance, as the high-carry rupiah rallied sharply. Indonesia’s policy rate is the highest in Asia, and the market is gaining confidence in its central bank policy and investment climate. And, continued strong performance from the Turkish lira and local debt helped the portfolio during the quarter.

Detracting from the portfolio’s performance was its position in the Icelandic currency market, as the krona weakened sharply in an environment of thin liquidity. The Tanzanian shilling hurt portfolio performance due to the country’s strong import-related demand for U.S. dollars. Finally, constrained position sizes or lack of exposure to the highest returning markets, such as the Czech Republic, Hungary, Indonesia, and the Philippines, limited portfolio upside.

 

Please consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. For more complete information about the Fund, you may obtain the prospectus by calling 800-828-5548. Read the prospectus carefully before you invest. The prospectus contains investment objectives, risks, charges, expenses and other information about the Fund, which may not be detailed in this report.

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Lazard World Dividend & Income Fund, Inc.

Investment Overview (continued)

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Notes to Investment Overview:

1

A measure of the average cash weighted term-to-maturity of the investment holdings. Duration is a measure of the price sensitivity of a bond to interest rate movements. Duration for a forward currency contract is equal to its term-to-maturity.

All returns are for the period ended March 31, 2006 and reflect reinvestment of all dividends and distributions. Past performance is not indicative, nor a guarantee, of future results.

The performance data of the index and other market data have been prepared from sources and data that the Investment

Manager believes to be reliable, but no representation is made as to their accuracy. The index is unmanaged, has no fees or costs and is not available for investment.

The views of the Fund’s management and the portfolio holdings described in this report are as of March 31, 2006; these views and portfolio holdings may have changed subsequent to this date. Nothing herein should be construed as a recommendation to buy, sell, or hold a particular investment. There is no assurance that the portfolio holdings discussed herein will remain in the Fund at the time you receive this report, or that portfolio holdings sold will have not been repurchased. The specific portfolio holdings may in aggregate represent only a small percentage of the Fund’s holdings. It should not be assumed that investments identified and discussed were, or will be, profitable, or that the investment decisions we make in the future will be profitable, or equal the performance of the investments discussed herein.

The views and opinions expressed are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendations for, any person. There can be no guarantee as to the accuracy of the outlooks for markets, sectors and securities as discussed herein. You should read the Fund’s prospectus for a more detailed discussion of the Fund’s investment objective, strategies, risks and fees.

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Lazard World Dividend & Income Fund, Inc.

Investment Overview (continued)

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Comparison of Changes in Value of $10,000 Investment in
LOR and MSCI ACWI Index* (unaudited)

Total Return Information* (unaudited)
For the period ended March 31, 2006
	Since
	Inception**
Market Price	4.94	%
Net Asset Value	18.76
MSCI ACWI Index	19.15

*	All returns reflect reinvestment of all dividends and distributions. The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, nor a guarantee, of future results; the investment return, market price and net asset value of the Fund will fluctuate, so that an investor’s shares in the Fund, when sold, may be worth more or less than their original cost. The returns do not reflect the deduction of taxes that a stockholder would pay on the Fund’s distributions or on the sale of Fund shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The index is unmanaged, has no fees or costs and is not available for investment. The MSCI ACWI Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global developed and emerging markets.
	Returns for period of less than one year are not annualized.
**	The Fund’s inception date was June 28, 2005.

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Lazard World Dividend & Income Fund, Inc.

Investment Overview (concluded)

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Ten Largest Equity Holdings
March 31, 2006 (unaudited)
					Percentage of
Security			Value		Net Assets
Statoil ASA		$	5,048,371		3.48	%
Verizon Communications, Inc.			4,553,822		3.14
Citizens Communications Co.			4,437,488		3.06
Bank of America Corp.			4,353,624		3.00
Enel SpA			4,100,099		2.83
Telecom Corp. of New Zealand, Ltd.			4,050,390		2.80
Bristol-Myers Squibb Co.			3,932,678		2.71
Eni SpA			3,727,958		2.57
National Grid PLC			3,293,555		2.27
Souza Cruz SA			3,090,220		2.13

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Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments
March 31, 2006 (unaudited)

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Description	Shares			Value
Common Stocks—96.6%
Australia—8.7%
Amcor, Ltd. (b)	410,900		$	2,168,143
Australia and New Zealand Banking
Group, Ltd.	111,500			2,106,885
BlueScope Steel, Ltd.	323,275			1,655,071
Coca-Cola Amatil, Ltd.	223,100			1,150,159
National Australia Bank, Ltd.	79,000			2,123,677
Telstra Corp., Ltd.	766,500			2,044,108
Westpac Banking Corp. (b)	82,100			1,394,456
Total Australia				12,642,499
Belgium—0.9%
Belgacom SA	40,297			1,286,919
Brazil—3.1%
Companhia Siderurgica Nacional SA
Sponsored ADR (b)	46,400			1,457,888
Souza Cruz SA (b)	203,200			3,090,220
Total Brazil				4,548,108
France—1.3%
Total SA	7,400			1,949,527
Greece—1.7%
OPAP SA	64,600			2,465,661
Hong Kong—1.2%
Pacific Basin Shipping, Ltd.	3,882,000			1,788,456
Hungary—1.3%
Magyar Telekom Telecommunications
Sponsored ADR (b)	86,800			1,891,372
Indonesia—1.7%
PT Bank Mandiri	13,629,500			2,534,814
Israel—1.8%
Bank Hapoalim BM	549,200			2,545,532
Description	Shares			Value
Italy—9.0%
Enel SpA	485,400		$	4,100,099
Eni SpA	131,200			3,727,958
Lottomatica SpA	53,200			2,253,299
Mediaset SpA	110,186			1,296,080
Telecom Italia SpA	560,400			1,632,689
Total Italy				13,010,125
Japan—0.5%
Nissan Motor Co., Ltd.	63,900			757,117
Mexico—2.8%
Grupo Mexico SA de CV	801,100			2,265,062
Kimberly-Clark de Mexico SA de CV	503,200			1,718,869
Total Mexico				3,983,931
Morocco—1.7%
Maroc Telecom	167,200			2,428,044
Netherlands—1.1%
Royal Dutch Shell PLC, A Shares	53,000			1,656,042
New Zealand—2.8%
Telecom Corp. of New Zealand, Ltd.	1,196,200			4,050,390
Norway—4.6%
DnB NOR ASA	116,900			1,571,943
Statoil ASA	175,300			5,048,371
Total Norway				6,620,314
Singapore—1.0%
United Overseas Bank, Ltd.	146,000			1,407,533
South Africa—1.2%
Sanlam, Ltd.	634,140			1,697,349
South Korea—1.4%
KT Corp. Sponsored ADR (b)	91,900			1,957,470
Spain—0.5%
Gestevision Telecinco SA	28,800			718,306

See Notes to Portfolio of Investments.

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Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (continued)
March 31, 2006 (unaudited)

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Description	Shares			Value
Taiwan—4.7%
Chunghwa Telecom Co., Ltd.
Sponsored ADR (b)	100,900		$	1,976,631
Delta Electronics, Inc.	773,000			1,798,284
Fubon Financial Holding Co., Ltd.	1,625,000			1,376,949
Taiwan Semiconductor
Manufacturing Co., Ltd.	825,000			1,632,002
Total Taiwan				6,783,866
United Kingdom—15.5%
Barclays PLC	123,100			1,438,079
Diageo PLC	91,900			1,445,009
Dignity PLC	172,734			1,403,701
Gallaher Group PLC	91,500			1,333,176
HSBC Holdings PLC	76,300			1,277,141
Kelda Group PLC	108,900			1,489,418
Lloyds TSB Group PLC	247,144			2,359,905
National Grid PLC	331,667			3,293,555
Provident Financial PLC	95,500			1,170,315
Royal & Sun Alliance Insurance
Group PLC	628,065			1,500,663
Royal Bank of Scotland Group PLC	54,984			1,786,328
Scottish and Southern Energy PLC	88,600			1,739,672
Scottish Power PLC	113,105			1,141,805
Tomkins PLC	196,161			1,144,095
Total United Kingdom				22,522,862
United States—28.1%
Altria Group, Inc. (b)	26,500			1,877,790
Bank of America Corp. (b)	95,600			4,353,624
Brandywine Realty Trust (b)	70,200			2,229,552
Bristol-Myers Squibb Co. (b)	159,800			3,932,678
Centerplate, Inc. (b)	90,800			1,171,320
Citigroup, Inc. (b)	58,100			2,744,063
Citizens Communications Co. (b)	334,400			4,437,488
Du Pont (E.I.) de Nemours & Co. (b)	72,500			3,060,225
Ferrellgas Partners LP (b)	30,200			641,448
Health Care Property Investors, Inc. (b)	76,000			2,158,400
JPMorgan Chase & Co. (b)	56,300			2,344,332
Description	Shares			Value
KeySpan Corp. (b)	52,500		$	2,145,675
Pfizer, Inc. (b)	96,300			2,399,796
The Southern Co. (b)	61,300			2,008,801
US Shipping Partners LP (b)	30,700			712,240
Verizon Communications, Inc. (b)	133,700			4,553,822
Total United States				40,771,254
Total Common Stocks
(Identified cost $130,282,435)				140,017,491
Preferred Stock—1.5%
Brazil—1.5%
Telemar Norte Leste SA
(Identified cost $1,964,346) (b)	81,400			2,129,690
	Principal
	Amount
Description	(000) (c)			Value
Foreign Government
Obligations—7.8%
Costa Rica—0.5%
Costa Rican Treasury Bill,
0.00%, 10/11/06	386,550			711,035
Egypt—3.7%
Egypt Treasury Bills:
0.00%, 07/18/06	4,875			826,736
0.00%, 09/05/06	6,950			1,165,568
0.00%, 09/12/06	1,450			242,798
0.00%, 09/26/06	7,900			1,318,568
0.00%, 10/17/06	10,925			1,814,719
Total Egypt				5,368,389
Israel—0.2%
Israel Government Bond,
6.00%, 01/31/10	1,340			283,406

See Notes to Portfolio of Investments.

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Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (continued)
March 31, 2006 (unaudited)

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	Principal
	Amount
Description	(000) (c)			Value
Turkey—3.4%
Turkey Government Bonds:
0.00%, 09/27/06	5,380		$	3,754,844
0.00%, 03/07/07	837			552,264
0.00%, 05/09/07	552			357,112
0.00%, 09/05/07	497			306,238
Total Turkey				4,970,458
Total Foreign Government
Obligations
(Identified cost $10,921,601)				11,333,288
Structured Notes—1.6%
Brazil—1.3%
Citibank Brazil Inflation-Linked Bond
NTN-B:
9.75%, 05/18/09 (d)	557			551,799
9.60%, 08/17/10 (d)	698			671,050
8.45%, 05/18/15 (d)	659			647,273
Total Brazil				1,870,122
Zambia—0.3%
Smith Barney ZMK Linked Deposit,
13.00%, 09/29/06	1,304,500			401,385
Total Structured Notes
(Identified cost $2,292,795)				2,271,507
	Principal
	Amount
Description	(000)			Value
Repurchase Agreement—0.2%
State Street Bank and Trust Co.,
4.23%, 04/03/06
(Dated 03/31/06, collateralized by
$310,000 United States Treasury
Note, 2.50%, 10/31/06, with a
value of $309,067)
Proceeds of $299,105
(Identified cost $299,000) (b)	$299		$	299,000
Total Investments—107.7%
(Identified cost $145,760,177) (a)			$	156,050,976
Liabilities in Excess of Cash
and Other Assets—(7.7)%				(11,162,316	)
Net Assets—100.0%			$	144,888,660

See Notes to Portfolio of Investments.

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Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (continued)
March 31, 2006 (unaudited)

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Forward Currency Contracts open at March 31, 2006:

Forward Currency Purchase Contracts		Expiration Date		Foreign Currency		U.S. $ Cost on Origination Date			U.S. $ Current Value			Unrealized Appreciation			Unrealized Depreciation
ARS		04/03/06		1,416,933		$	459,000		$	459,838		$	838		$	—
ARS		04/12/06		2,735,000			887,180			887,483			303			—
ARS		04/18/06		1,139,786			371,000			369,820			—			1,180
ARS		04/28/06		1,003,145			325,000			325,441			441			—
ARS		05/03/06		1,411,785			458,000			457,874			—			126
BRL		04/06/06		4,126,500			1,750,000			1,897,957			147,957			—
BRL		04/10/06		656,880			280,000			301,796			21,796			—
BRL		09/01/06		5,505,701			2,459,000			2,436,079			—			22,921
BRL		12/20/06		1,114,775			430,000			481,207			51,207			—
BWP		05/03/06		1,977,479			360,000			358,116			—			1,884
BWP		06/09/06		2,011,928			363,000			361,988			—			1,012
BWP		06/19/06		1,880,854			341,000			337,815			—			3,185
CLP		04/20/06		162,180,750			303,000			308,788			5,788			—
CLP		06/19/06		220,357,000			417,889			419,340			1,451			—
COP		05/02/06		830,192,500			365,000			361,769			—			3,231
COP		05/12/06		780,864,000			332,000			340,225			8,225			—
COP		05/18/06		523,488,000			228,000			228,066			66			—
COP		05/24/06		3,419,010,000			1,512,000			1,489,425			—			22,575
COP		06/09/06		469,040,000			208,000			204,228			—			3,772
COP		06/21/06		500,232,000			221,538			217,696			—			3,842
CSD		04/20/06		24,472,340			338,858			338,646			—			212
CSD		06/09/06		19,093,746			260,630			260,380			—			250
CSD		05/11/06		25,113,240			337,000			345,349			8,349			—
EUR		05/08/06		392,337			469,000			475,882			6,882			—
GHC		04/10/06		1,153,820,000			124,000			126,064			2,064			—
GHC		04/13/06		1,057,584,000			114,905			115,520			615			—
GHC		09/07/06		4,953,273,000			527,000			526,446			—			554
GHC		09/18/06		1,047,358,000			111,599			111,049			—			550
IDR		04/11/06		3,349,090,000			358,000			368,558			10,558			—
IDR		04/20/06		16,872,800,000			1,834,000			1,856,806			22,806			—
IDR		06/27/06		3,018,210,000			327,000			332,146			5,146			—
ILS		05/31/06		3,345,300			708,000			715,871			7,871			—
ILS		06/19/06		5,448,384			1,152,000			1,165,766			13,766			—
ILS		09/29/06		1,630,658			356,000			348,561			—			7,439
INR		04/03/06		55,296,570			1,239,000			1,240,550			1,550			—
INR		04/10/06		16,490,900			370,000			369,786			—			214
INR		04/17/06		7,792,000			174,513			174,640			127			—
INR		05/03/06		56,338,740			1,257,000			1,261,348			4,348			—
INR		06/05/06		15,843,650			355,000			354,028			—			972
ISK		04/06/06		26,734,295			419,000			374,294			—			44,706
ISK		04/06/06		26,281,604			367,000			367,956			956			—
ISK		04/10/06		16,775,163			265,000			234,705			—			30,295
ISK		04/10/06		20,723,000			308,272			289,940			—			18,332
KRW		04/06/06		1,759,502,000			1,815,792			1,811,091			—			4,701
KRW		05/08/06		80,543,200			83,000			82,967			—			33
KRW		05/08/06		256,524,200			262,000			264,243			2,243			—
MXN		04/07/06		3,831,654			361,000			351,556			—			9,444
MXN		03/30/07		4,133,238			366,000			369,981			3,981			—
MYR		05/16/06		1,264,374			342,000			344,037			2,037			—
MYR		06/12/06		1,381,219			373,000			376,316			3,316			—
MYR		07/31/06		1,530,165			413,000			417,858			4,858			—

See Notes to Portfolio of Investments.

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Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (continued)
March 31, 2006 (unaudited)

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Forward Currency Contracts open at March 31, 2006 (continued):

Forward Currency Purchase Contracts		Expiration Date		Foreign Currency		U.S. $ Cost on Origination Date				U.S. $ Current Value			Unrealized Appreciation			Unrealized Depreciation
MYR		08/07/06		1,360,836		$		367,000		$	371,743		$	4,743		$	—
MYR		08/14/06		3,000,051				813,000			819,809			6,809			—
MYR		11/13/06		1,921,000				522,153			527,244			5,091			—
NGN		08/10/06		88,536,640				674,000			680,177			6,177			—
PEN		04/12/06		1,067,850				315,000			317,067			2,067			—
PEN		04/17/06		1,067,850				315,000			316,973			1,973			—
PEN		04/24/06		1,193,000				356,322			353,974			—			2,348
PHP		04/03/06		4,904,920				94,000			95,856			1,856			—
PHP		06/15/06		115,505,080				2,252,000			2,247,028			—			4,972
PHP		06/30/06		5,488,030				107,000			106,676			—			324
PLN		04/21/06		7,066,847				2,235,000			2,175,049			—			59,951
PLN		04/21/06		1,292,533				397,000			397,819			819			—
PLN		05/31/06		1,730,000				547,087			533,015			—			14,072
PLN		06/13/06		4,005,000				1,236,111			1,234,425			—			1,686
RON		04/10/06		131,000				44,679			44,992			313			—
RON		04/20/06		5,891,000				2,007,223			2,021,557			14,334			—
RON		04/25/06		2,195,000				758,230			752,918			—			5,312
RON		05/09/06		1,471,000				501,278			504,134			2,856			—
RON		05/30/06		782,000				268,429			267,723			—			706
RUB		02/01/07		120,623,940				4,282,000			4,343,181			61,181			—
RUB		02/26/07		1,958,400				68,000			70,484			2,484			—
RUB		09/19/08		16,102,170				549,000			567,050			18,050			—
SGD		04/17/06		1,289,297				794,000			797,261			3,261			—
SGD		05/08/06		568,725				353,000			351,962			—			1,038
SGD		06/06/06		3,264,000				2,023,396			2,022,357			—			1,039
SGD		07/13/06		784,247				483,000			486,673			3,673			—
SGD		08/23/06		344,000				212,692			213,851			1,159			—
SGD		08/28/06		92,308				57,000			57,396			396			—
SIT		05/15/06		320,640,300				1,602,000			1,622,791			20,791			—
SKK		04/10/06		39,798,000				1,272,132			1,283,879			11,747			—
SKK		04/28/06		40,926,012				1,308,000			1,321,220			13,220			—
THB		04/11/06		2,315,360				58,000			59,520			1,520			—
THB		04/21/06		39,921,100				1,021,000			1,026,104			5,104			—
TRY		04/04/06		678,001				504,090			503,458			—			632
TRY		04/04/06		678,001				504,090			503,458			—			632
TRY		04/21/06		106,460				79,000			78,758			—			242
TWD		04/24/06		15,101,000				467,089			466,541			—			548
TZS		05/08/06		785,345,000				655,000			638,111			—			16,889
TZS		06/05/06		206,056,000				167,370			166,604			—			766
TZS		06/22/06		170,833,100				142,000			137,715			—			4,285
TZS		06/23/06		162,287,000				135,009			130,803			—			4,206
TZS		07/05/06		121,188,000				100,654			97,465			—			3,189
TZS		08/09/06		192,030,000				155,421			153,432			—			1,989
TZS		08/16/06		227,695,000				186,082			181,691			—			4,391
TZS		10/13/06		507,482,000				412,973			400,173			—			12,800
TZS		10/26/06		264,557,500				215,000			207,929			—			7,071
TZS		10/26/06		314,160,000				255,000			246,914			—			8,086
TZS		12/15/06		269,059,000				210,805			208,823			—			1,982
TZS		12/20/06		442,308,000				348,000			342,857			—			5,143
UAH		05/19/06		1,218,709				239,000			239,184			184			—
UAH		06/09/06		1,044,523				206,000			204,006			—			1,994
UAH		06/09/06		958,800				188,000			187,264			—			736

See Notes to Portfolio of Investments.

12

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Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (concluded)
March 31, 2006 (unaudited)

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Forward Currency Contracts open at March 31, 2006 (concluded):

								U.S. $ Cost			U.S. $
Forward Currency		Expiration		Foreign				on Origination			Current			Unrealized			Unrealized
Purchase Contracts		Date		Currency				Date			Value			Appreciation			Depreciation
UAH		06/19/06		836,640			$	166,000		$	163,037		$	—		$	2,963
UAH		08/01/06		1,301,000				258,002			251,542			—			6,460
UAH		08/07/06		7,822,080				1,552,000			1,510,837			—			41,163
UAH		08/10/06		824,580				162,000			159,188			—			2,812
UAH		09/11/06		1,246,560				245,000			239,367			—			5,633
Total Forward Currency Purchase Contracts							$	63,306,493		$	63,428,356		$	529,353		$	407,490
								U.S. $ Cost			U.S. $
Forward Currency		Expiration		Foreign				on Origination			Current			Unrealized			Unrealized
Sale Contracts		Date		Currency				Date			Value			Appreciation			Depreciation
ARS		04/03/06		1,416,933			$	460,417		$	459,838		$	579		$	—
BRL		04/10/06		1,483,949				675,751			681,784			—			6,033
BRL		04/24/06		1,420,083				659,430			649,947			9,483			—
BRL		12/28/06		1,100,274				476,000			474,132			1,868			—
EUR		05/08/06		1,970,000				2,378,086			2,389,492			—			11,406
EUR		04/20/06		278,000				338,858			336,827			2,031			—
EUR		06/09/06		213,000				260,630			258,864			1,766			—
INR		04/03/06		55,296,570				1,238,445			1,240,550			—			2,105
ISK		04/06/06		26,734,295				376,730			374,294			2,436			—
ISK		04/10/06		18,360,510				259,000			256,886			2,114			—
ISK		04/10/06		19,137,653				269,518			267,759			1,759			—
PEN		04/12/06		1,067,850				311,554			317,067			—			5,513
PEN		04/17/06		1,067,850				311,463			316,973			—			5,510
PHP		04/03/06		4,904,920				95,706			95,856			—			150
SKK		04/10/06		9,768,737				319,000			315,138			3,862			—
SKK		04/10/06		11,094,703				357,000			357,914			—			914
SKK		04/28/06		8,135,905				263,000			262,652			348			—
TRY		04/04/06		678,001				502,000			503,458			—			1,458
TRY		04/21/06		480,348				360,000			355,354			4,646			—
TRY		07/05/06		647,112				472,000			471,406			594			—
TRY		07/05/06		647,112				472,000			471,406			594			—
TRY		02/09/07		754,000				525,179			527,990			—			2,811
Total Forward Currency Sale Contracts							$	11,381,767		$	11,385,587			32,080			35,900
Gross unrealized appreciation/depreciation on Forward Currency Contracts													$	561,433		$	443,390

See Notes to Portfolio of Investments.

13

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Lazard World Dividend & Income Fund, Inc.
Notes to Portfolio of Investments
March 31, 2006 (unaudited)

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(a)	For federal income tax purposes, the aggregate cost was $145,760,177, aggregate gross unrealized appreciation was $12,488,963, aggregate gross unrealized depreciation was $2,198,164 and the net unrealized appreciation was $10,290,799.
(b)	Segregated security for forward currency contracts.
(c)	Principal amount denominated in respective country’s currency unless otherwise specified.
(d)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” Principal amount denominated in U.S. dollar.

Security Abbreviations:

ADR — American Depositary Receipt

NTN-B — Brazil Sovereign “Nota do Tesouro Nacional”

Currency Abbreviations:
ARS		— Argentine Peso		NGN		— Nigerian Naira
BRL		— Brazilian Real		PEN		— Peruvian New Sol
BWP		— Botswana Pula		PHP		— Philippine Peso
CLP		— Chilean Peso		PLN		— Polish Zloty
COP		— Colombian Peso		RON		— Romanian Leu
CSD		— Serbian Dinar		RUB		— Russian Ruble
EUR		— Euro		SGD		— Singapore Dollar
GHC		— Ghanaian Cedi		SIT		— Slovenian Tolar
IDR		— Indonesian Rupiah		SKK		— Slovenska Koruna
ILS		— Israeli Shekel		THB		— Thai Baht
INR		— Indian Rupee		TRY		— New Turkish Lira
ISK		— Iceland Krona		TWD		— New Taiwan Dollar
KRW		— South Korean Won		TZS		— Tanzanian Shilling
MXN		— Mexican Peso		UAH		— Ukranian Hryvnia
MYR		— Malaysian Ringgit		ZMK		— Zambian Kwacha

 

14

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Lazard World Dividend & Income Fund, Inc.
Notes to Portfolio of Investments (concluded)
March 31, 2006 (unaudited)

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Portfolio holdings by industry (as percentage of net assets):
Industry
Alcohol & Tobacco		5.4	%
Automotive		0.5
Banking		14.5
Chemicals		2.1
Commercial Services		0.8
Drugs		4.4
Electric		8.5
Energy Integrated		8.5
Financial Services		9.2
Food & Beverages		0.8
Forest & Paper Products		2.7
Gas Utilities		1.9
Health Services		2.0
Insurance		1.0
Leisure & Entertainment		4.6
Manufacturing		0.8
Metals & Mining		3.7
Real Estate		3.0
Semiconductors & Components		2.4
Telecommunications		19.6
Transportation		1.7
Subtotal		98.1
Foreign Government Obligations		7.8
Structured Notes		1.6
Repurchase Agreement		0.2
Total Investments		107.7	%

 

15

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Lazard World Dividend & Income Fund, Inc.

Dividend Reinvestment Plan
(unaudited)

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Unless you elect to receive distributions in cash (i.e., opt-out), all dividends, including any capital gain distributions, on your Common Stock will be automatically reinvested by the Plan Agent in additional Common Stock under the Fund’s Dividend Reinvestment Plan (the “Plan”). You may elect not to participate in the Plan by contacting Computershare Shareholder Services, Inc., as dividend disbursing agent (the “Plan Agent”). If you do not participate, you will receive all distributions in cash, paid by check mailed directly to you by the Plan Agent.

Under the Plan, the number of shares of Common Stock you will receive will be determined on the dividend or distribution payment date, as follows:

(1)	If the Common Stock is trading at or above net asset value at the time of valuation, the Fund will issue new shares at a price equal to the greater of (i) net asset value per Common Share on that date or (ii) 95% of the Common Stock’s market price on that date.
(2)	If the Common Stock is trading below net asset value at the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase Common Stock in the open market, on the NYSE or elsewhere, for the participants’ accounts. It is possible that the market price for the Common Stock may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in Common Stock issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase Common Stock in the open market within 30 days of the valuation date. Interest will not be paid on any uninvested cash payments.

You may withdraw from the Plan at any time by giving written notice to the Plan Agent. If you withdraw or the Plan is terminated, you will receive whole shares in your account under the Plan and you will receive a cash payment for any fraction of a share in your account. If you wish, the Plan Agent will sell your shares and send you the proceeds, minus an initial $15 service fee plus $0.12 per share being liquidated (for processing and brokerage expenses).

The Plan Agent maintains all stockholders’ accounts in the Plan and gives written confirmation of all transactions in the accounts, including information you may need for tax records. Shares of Common Stock in your account will be held by the Plan Agent in non-certificated form. Any proxy you receive will include all Common Stock you have received under the Plan.

There is no brokerage charge for reinvestment of your dividends or distributions in newly-issued shares of Common Stock. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases.

Automatically reinvesting dividends and distributions does not mean that you do not have to pay income taxes due upon receiving dividends and distributions.

If you hold your Common Stock with a brokerage firm that does not participate in the Plan, you will not be able to participate in the Plan and any dividend reinvestment may be effected on different terms than those described above. Consult your financial advisor for more information.

The Fund reserves the right to amend or terminate the Plan if, in the judgment of the Board of Directors, the change is warranted. There is no direct service charge to participants in the Plan (other than the service charge when you direct the Plan Agent to sell your Common Stock held in a dividend reinvestment account); however, the Fund reserves the right to amend the Plan to include a service charge payable by the participants. Additional information about the Plan may be obtained from the Plan Agent at P.O. Box 43010, Providence, Rhode Island 02940-3010.

16

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Lazard World Dividend & Income Fund, Inc.

Board of Directors and Officers Information
(unaudited)

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		Position(s)		Principal Occupation(s) During Past 5 Years
Name (Age)		with the Fund		and Other Directorships Held
Board of Directors:
Class I — Directors with Term Expiring in 2007
Independent Director:
Robert M. Solmson (58)		Director		Director, Lazard Alternative Strategies Fund, LLC; Director,
				Colonial Williamsburg Co.; Former Chief Executive Officer and
				Chairman, RFS Hotel Investors, Inc.; Former Director, Morgan
				Keegan, Inc.; Former Director, Independent Bank, Memphis.
Interested Director:
Charles Carroll (45)		Chief Executive Officer,		Deputy Chairman and Head of Global Marketing of the
		President and Director		Investment Manager.
Class II — Directors with Term Expiring in 2008
Independent Directors:
Kenneth S. Davidson (61)		Director		President, Davidson Capital Management Corporation; Trustee,
				The Juilliard School; Chairman of the Board, Bridgehampton
				Chamber Music Festival; Trustee, American Friends of the
				National Gallery/London; President, Aquiline Advisors LLC.
Lester Z. Lieberman (75)		Director		Private Investor; Chairman, Healthcare Foundation of New Jersey;
				Director, Cives Steel Co.; Director, Northside Power Transmission
				Co.; Advisory Trustee, New Jersey Medical School; Director, Public
				Health Research Institute; Trustee Emeritus, Clarkson University;
				Council of Trustees, New Jersey Performing Arts Center.
Class III — Directors with Term Expiring in 2009
Independent Directors:
John J. Burke (77)		Director		Lawyer and Private Investor; Director, Lazard Alternative
				Strategies Fund, LLC; Director, Pacific Steel & Recycling; Director,
				Sletten Construction Company; Trustee Emeritus, The University
				of Montana Foundation.
Richard Reiss, Jr. (62)		Director		Chairman, Georgica Advisors LLC, an investment manager;
				Director, Lazard Alternative Strategies Fund, LLC; Director,
				O’Charley’s, Inc., a restaurant chain.
Interested Director:
Ashish Bhutani (46)		Director		Chief Executive Officer of the Investment Manager; from 2001 to
				December 2002, Co-Chief Executive Officer North America of
				Dresdner Kleinwort Wasserstein and member of its Global
				Corporate and Markets Board and the Global Executive
				Committee; from 1995 to 2001, Chief Executive Officer of
				Wasserstein Perella Securities; and from 1989 to 2001, Deputy
				Chairman of Wasserstein Perella Group.

17

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Lazard World Dividend & Income Fund, Inc.

Board of Directors and Officers Information (concluded)
(unaudited)

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		Position(s)
Name (Age)		with the Fund		Principal Occupation(s) During Past 5 Years
Officers:
Nathan A. Paul (33)		Vice President		Managing Director and General Counsel of the Investment
		and Secretary		Manager.
Brian D. Simon (43)		Chief Compliance		Director and Chief Compliance Officer of the Investment
		Officer and		Manager; Vice President, Law & Regulations at J. & W. Seligman
		Assistant Secretary		& Co., from July 1999 to October 2002.
Stephen St. Clair (47)		Treasurer		Vice President of the Investment Manager.
David A. Kurzweil (31)		Assistant Secretary		Vice President of the Investment Manager; Associate at
				Kirkpatrick & Lockhart LLP, a law firm, from August 1999 to
				January 2003.
Cesar A. Trelles (31)		Assistant Treasurer		Fund Administration Manager of the Investment Manager;
				Manager for Mutual Fund Finance Group at UBS Global Asset
				Management, from August 1998 to August 2004.

18

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Lazard World Dividend & Income Fund, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-828-5548
http://www.LazardNet.com

Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300

Custodian
State Street Bank and Trust Company
One Lincoln Street
Boston, Massachusetts 02111

Transfer Agent and Registrar
Computershare Trust Company, N.A.
P.O. Box 43010
Providence, Rhode Island 02940-3010

Dividend Disbursing Agent
Computershare Shareholder Services, Inc.
P.O. Box 43010
Providence, Rhode Island 02940-3010

Independent Registered Public Accounting Firm
Deloitte & Touche LLP
Two World Financial Center
New York, New York 10281-1414

Legal Counsel
Stroock & Stroock & Lavan LLP
180 Maiden Lane
New York, New York 10038-4982
http://www.stroock.com

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Lazard Asset Management LLC
30 Rockefeller Plaza
New York, NY 10112-6300
www.LazardNet.com

This report is intended only for the information of stockholders or those who have received the current prospectus covering shares of Common Stock of Lazard World Dividend & Income Fund, Inc. which contains information about management fees and other costs.

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