UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF
REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-21751
Lazard World Dividend & Income Fund, Inc.
(Exact name of registrant as specified in charter)
30 Rockefeller Plaza
New York, New York 10112
(Address of principal executive
offices) (Zip code)
Nathan A. Paul, Esq.
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112
(Name and address of agent for service)
Registrants telephone number, including area code: (212) 632-6000
Date of fiscal year end: 12/31
Date of reporting period: 6/30/10
ITEM 1. REPORTS TO STOCKHOLDERS.
Lazard Asset Management
Lazard World
Dividend & Income
Fund, Inc.
Semi-Annual Report
J U N E 3 0 , 2 0 1 0
LAZARD
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Lazard World Dividend & Income Fund, Inc. |
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Table of Contents |
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Statements of |
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Lazard World Dividend & Income Fund, Inc. |
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Dear Stockholders,
We are pleased to present this semi-annual report for Lazard World Dividend & Income Fund, Inc. (LOR or the Fund), for the period ended June 30, 2010. The Fund is a diversified, closed-end management investment company that began trading on the New York Stock Exchange (NYSE) on June 28, 2005. Its ticker symbol is LOR.
As of June 30, 2010, the Funds net asset value (NAV) performance for the second quarter of 2010 lagged its benchmark, the Morgan Stanley Capital International (MSCI®) All Country World Index (ACWI®) (the Index). However, we are pleased with LORs favorable NAV performance since inception. We believe that, since inception, the Fund has provided investors with an attractive yield and diversification, backed by the extensive experience, commitment, and professional management of Lazard Asset Management LLC (the Investment Manager or Lazard).
Portfolio Update (as of June 30, 2010)
For the second quarter of 2010, the Funds NAV decreased by 13.5%, underperforming the Index loss of 12.1%. Similarly, the year-to-date NAV loss of 9.2% lagged the Index loss of 9.4%. However, for the one-year period ended June 30, the Fund gained 15.4%, significantly ahead of the Index return of 11.8%. The Funds since-inception annualized NAV return of 2.2% is comfortably ahead of the Index return of 1.2% for the same period. Shares of LOR ended the first half of 2010 with a market price of $10.15, representing a 11.4% discount to the Funds NAV of $11.45.
The Funds net assets were $78.8 million as of June 30, 2010, with total leveraged assets of $108.9 million, representing a 27.7% leverage rate. This leverage rate was an increase from the level at the end of the first quarter of 25.8%, though still below the Funds historical level since inception (of approximately 30%).
We believe that LORs investment thesis remains sound, as demonstrated by the Funds favorable relative performance since inception.
During the second quarter, the Funds world equity portfolio benefited from stock selection in the consumer staples and information technology sectors and from an overweight exposure to the telecom services
sector. Conversely, performance was hurt by stock selection in the consumer discretionary, energy, and industrials sectors. The smaller, short-duration1 emerging market currency and debt portion of the Fund detracted from performance during the quarter, but has been a positive contributor to performance for the Fund since inception.
As of June 30, 2010, 71.9% of the Funds total leveraged assets consisted of world equities and 23.9% consisted of emerging market currency and debt instruments, while the remaining 4.2% consisted of cash and other net assets.
Declaration of Distributions
Pursuant to LORs Level Distribution Policy, the Fund declares, monthly, a distribution equal to 6.5% (on an annualized basis) of the Funds NAV on the last business day of the previous year. The current distribution rate per share of $0.07063 is based on the Funds NAV of $13.04 on December 31, 2009 and is equal to, on an annualized basis, 8.4% of the Funds $10.15 market price as of the close of trading on the NYSE on June 30, 2010. It is currently estimated that $0.02538 of the $0.42378 distributed per share as of June 30th may represent a return of capital.
Additional Information
Please note that available on www.LazardNet.com are frequent updates on the Funds performance, press releases, distribution information, and a monthly fact sheet that provides information about the Funds major holdings, sector weightings, regional exposures, and other characteristics, including the notices required by Section 19(a) of the Investment Company Act of 1940, as amended. You may also reach Lazard by phone at 1-800-823-6300.
On behalf of Lazard, we thank you for your investment in Lazard World Dividend & Income Fund, Inc. and look forward to continuing to serve your investment needs in the future.
Message from the Portfolio Managers
World Equity
Portfolio
(71.9% of total leveraged assets)
The Funds world equity portfolio is typically invested in 60 to 90 securities, consisting primarily of the high-
2
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Lazard World Dividend & Income Fund, Inc. |
Investment Overview (continued) |
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est dividend-yielding stocks selected from the current holdings of other accounts managed by the Investment Manager. The portfolio is broadly diversified in both developed and emerging market countries and across the capitalization spectrum. Examples include Pfizer, a research-based, global pharmaceutical company that is based in the United States; Zurich Financial Services, a Swiss insurance-based financial services provider active in North America, Europe, Asia-Pacific, Latin America and other markets; and Kimberly-Clark de Mexico, a Mexican manufacturer and marketer of paper based products.
As of June 30, 2010, 35.1% of the Funds world equity portfolio investments were based in North America, 22.4% were based in Continental Europe (not including the United Kingdom), 14.4% were based in Asia, 8.8% were based in the United Kingdom, 7.3% were based in Latin America, 7.2% were based in Africa and the Middle East, and 4.8% were based in Australia and New Zealand. The world equity portfolio is similarly well diversified across a number of industry sectors. The top two sectors, by weight, at June 30, 2010, were financials (24.5%), which includes banks, insurance companies, and financial services companies, and consumer discretionary (12.4%), a sector comprised of automobiles and components, consumer durables and apparel, consumer services, media, and retailing companies. Other sectors in the portfolio include consumer staples, telecommunication services, energy, health care, industrials, information technology, materials, and utilities. The average dividend yield on the securities held in the world equity portfolio was approximately 5.8% as of June 30, 2010.
World Equity Markets Review
Global stocks were volatile in the
second quarter, falling sharply from mid-April to late May as European
sovereign debt fears intensified. Uncertainty over growth prospects in the
United States and China also weighed on stocks. European marketsparticularly
those with strained governmental finances, such as Greece, Italy, and
Spainwere weak during the quarter, as the large bailout package did little to
calm investors fears. Additionally, austerity measures by several European
governments led to concerns that the economic recovery could be held back. In
the United States, stocks rallied earlier in the quarter on the back of strong
corporate earnings announcements, but
failed to maintain the positive momentum, as the U.S. recovery appeared to have hit a soft patch, with housing, consumer confidence, and retail sales data coming in below expectations. A series of recent events, including ongoing financial reform legislation and the oil spill in the Gulf of Mexico, also hinted at more aggressive governmental influence on business, further hurting investor sentiment.
Asian markets finished the first half of the year with mixed performance, as investors were wary of an economic and real estate slowdown in China and political tensions in Korea. Japanese stocks were also hurt by concerns of a global economic slowdown, while strong yen appreciation versus the U.S. dollar and euro weighed on export-oriented Japanese companies.
By sector, economically defensive groups such as tele-com services, consumer staples, and utilities outperformed in the second quarter, while the materials sector, particularly commodity producers, lagged over concerns about weaker Chinese growth. The energy sector notably underperformed due to slowing demand and the oil spill in the Gulf of Mexico.
What Helped and What Hurt LOR
The Fund benefited from strong stock
selection in the consumer staples sector in the second quarter, driven by U.S.
tobacco makers Altria Group and Reynolds American. The companies sales proved
resilient in the face of higher U.S. taxes and a recent Supreme Court ruling that
materially reduced their litigation risk. Mexican paper-product maker
Kimberly-Clark de Mexico also rose strongly, as it generated strong profit
growth despite input cost increases and pressure on consumer spending.
Stock selection in information technology also helped performance over the quarter. Shares of Taiwan Semiconductor Manufacturing and Brazilian credit card processor Cielo performed well. Additionally, some large technology companies in the Index that the Fund did not own, such as Microsoft and Nokia, declined, which also added to the Funds relative returns.
The Fund was negatively impacted by stock selection in the energy sector, where a number of holdings were hurt by the Gulf of Mexico oil spill. We sold our position in BP soon after the incident, as we felt ongoing liability and regulatory risk were not adequately
3
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Lazard World Dividend & Income Fund, Inc. |
Investment Overview (continued) |
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addressed in the companys stock price. Diamond Offshore Drilling, an operator of deepwater drilling rigs, was hurt by the moratorium on drilling in the Gulf of Mexico, which removed a substantial portion of the global demand for their rigs. This position was sold as well, but not before it detracted from returns. Other large, integrated oil holdings, such as Royal Dutch Shell and Total, were also weak due to their exposure to deepwater drilling activity.
Stock selection in the consumer discretionary sector also hurt performance, as Esprit fell on concerns that the weaker euro would reduce profits in its large European operations; however, we added to the position during the second quarter due to the companys high yield, strong cash generation abilities, and debt-free balance sheet. Weakness in Greek gaming and lottery operator OPAP also detracted from returns.
Emerging Market
Currency and Debt Portfolio
(23.9% of total leveraged assets)
The Fund also seeks enhanced income through investing in primarily high-yielding, short-duration emerging market forward currency contracts and local currency debt instruments. As of June 30, 2010, this portfolio consisted of forward currency contracts (76.6%) and sovereign debt obligations (23.4%). The average duration of the emerging market currency and debt portfolio decreased from approximately 8 months to approximately 4 months during the quarter, with an average yield of 5.4%2 as of quarter end.
Emerging Market Currency and Debt Market
Review
The second quarter of 2010 was characterized by a rapid reversal of previous
quarters favorable market trends. Volatility spiked higher, investors risk
appetite tumbled, macro-economic indicators rolled over following the bounce in
the first quarter, and global equity markets suffered substantial losses, while
global bond yields generally rallied.
In China, policymakers continue to seek a cooling of the countrys rapid pace of loan-fueled investment growth through targeted regulatory measures. Chinese first-half GDP grew at a blistering 11.1% year-over-year, aided by the continuation of credit-fuelled expansion, while fixed asset investments rose 25% year-over-year and CPI approached the politically sensitive 3% threshold. Thus far, Chinese policymakers have been relying largely on administrative credit
controls to tighten conditions, and during June announced greater renminbi flexibility as an additional monetary tool, with the intention of promoting consumption-oriented stimulus. In emerging local currency and debt markets, many currencies weakened on the flight to quality U.S. dollar bid, in a correlated relationship with global equity markets and generalized fear over the deteriorating global economic outlook. During the second quarter, the market moderated its view on emerging markets policies, resulting in capital gains on emerging markets local bond positions in Latin America and Europe. Within Asia, monetary policy decisions were on hold or continued to tighten, as growth and inflation indicators prompted ongoing normalization there and most regional currencies outperformed. This backdrop provided scope for significant return differentiation by region, whereby European currencies underperformed though rates rallied, while select Latin American and Asian markets experienced intra-regional, idiosyncratic country attribution.
What Helped and What Hurt LOR
Sizeable exposure to Indonesia and Malaysia, the top-performing Asian local
markets during the quarter (and indeed year to date), contributed most to
performance. Asias strong regional growth profile, policy credibility, and
these two countries central bank tolerance of currency strength, in
particular, buoyed our positions. Malaysias ringgit has appreciated by more
than 5% versus the U.S. dollar and Chinese renminbi on a year-to-date basis,
and it appreciated notably in June too, as the Peoples Bank of China announced
a more flexible renminbi policy. In Indonesia, the resilient domestic economy,
stable rupiah guidance from the central bank, and well-balanced policy
framework prompted Moodys to raise its country credit outlook to positive.
Beyond Asia, positions in Turkey, Brazil, and Ghana rounded out the positive contributions during the quarter. Turkish exposure management and security selection contributed favorably, in contrast to the quarterly loss in the currency market. Sizeable positions in Brazils high-yielding currency and local debt positions added value, as did Ghanaian frontier market exposure in FX and local government bonds.
Conversely, South Korea was the largest detractor during the second quarter, as the won weakened sharply, exhibiting elevated sensitivity to global equity market
4
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Lazard World Dividend & Income Fund, Inc. |
Investment Overview (continued) |
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distress and uncertainty regarding the Chinese (and indeed global) economic outlook. Additionally, the newly announced regulatory changes governing banks forward exposures, and the renewed political tension with North Korea stressed the won. Emerging European exposures were also a detractor in the second quarter, following a substantial positive attribution during the first quarter.
Certain African exposures (specifically Zambia, Uganda, and Kenya) were negatively impacted by fears over slowing Chinese growth (given investment and trade linkages), contagion from the Eurozone debt crisis, and the low domestic interest rate environment. These factors prompted domestic market participants to preemptively hoard U.S. dollars, fueling depreciatory pressures on regional currencies.
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Notes to Investment Overview: |
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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. |
2 |
The quoted yield does not account for the implicit cost of borrowing on the forward currency contracts, which would reduce the yield shown. |
All
returns reflect reinvestment of all dividends and distributions. Past
performance is not indicative, or 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 a free float-adjusted
market capitalization weighted index that is designed to measure the equity
market performance of global developed and emerging markets. The Index is
unmanaged, has no fees or costs and is not available for investment.
The views of the Funds Investment Manager and the securities described in this report are as of June 30, 2010; 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 security. There is no assurance that the securities discussed herein will remain in the Fund at the time you receive this report, or that securities sold will not have been repurchased. The specific securities discussed may, in aggregate, represent only a small percentage of the Funds holdings. It should not be assumed that securities identified and discussed were, or will be, profitable, or that the investment decisions made in the future will be profitable, or equal the investment performance of the securities 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.
5
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Lazard World Dividend & Income Fund, Inc. |
Investment Overview (continued) |
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Comparison of Changes in Value of $10,000
Investment in
LOR and MSCI ACWI Index* (unaudited)
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Value
at |
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LOR at Market Price |
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$ 9,882 |
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LOR at Net Asset Value |
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11,162 |
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MSCI ACWI Index |
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10,610 |
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Average Annual Total Returns* |
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One |
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Five |
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Since |
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Market Price |
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22.44 |
% |
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0.26 |
% |
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0.24 |
% |
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Net Asset Value |
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15.39 |
% |
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2.22 |
% |
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2.22 |
% |
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MSCI ACWI Index |
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11.76 |
% |
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1.16 |
% |
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1.19 |
% |
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* |
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, or a guarantee, of future results; the investment return, market price and net asset value of the Fund will fluctuate, so that an investors 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 Funds distributions or on the sale of Fund shares. |
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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 a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of global developed and emerging markets. The Index is unmanaged, has no fees or costs and is not available for investment. |
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** |
The Funds inception date was June 28, 2005. |
6
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Lazard World Dividend & Income Fund, Inc. |
Investment Overview (concluded) |
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Ten Largest Equity Holdings |
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June 30, 2010 (unaudited) |
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Security |
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Value |
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Percentage of |
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AT&T, Inc. |
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$ |
2,548,417 |
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3.2 |
% |
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Royal Dutch Shell PLC, A Shares |
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2,296,359 |
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2.9 |
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Taiwan Semiconductor Manufacturing Co., Ltd. |
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2,117,016 |
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2.7 |
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Total SA |
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2,103,505 |
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2.7 |
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Reynolds American, Inc. |
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2,084,800 |
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2.6 |
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Redecard SA |
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2,061,191 |
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2.6 |
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McDonalds Corp. |
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1,976,100 |
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2.5 |
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Kumba Iron Ore, Ltd. |
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1,975,138 |
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2.5 |
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Verizon Communications, Inc. |
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1,972,608 |
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2.5 |
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Altria Group, Inc. |
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1,931,856 |
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2.5 |
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Portfolio Holdings Presented by Sector |
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June 30, 2010 (unaudited) |
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Sector |
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Percentage of |
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Consumer Discretionary |
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10.8 |
% |
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Consumer Staples |
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7.7 |
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Emerging Markets Debt Obligations |
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9.1 |
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Energy |
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8.9 |
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Financials |
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21.3 |
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Health Care |
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2.6 |
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Industrials |
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6.9 |
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Information Technology |
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9.0 |
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Materials |
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5.0 |
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Telecommunication Services |
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10.6 |
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Utilities |
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4.3 |
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Short-Term Investment |
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3.8 |
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Total Investments |
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100.0 |
% |
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7
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Lazard World Dividend & Income Fund, Inc. |
June 30, 2010 (unaudited) |
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Description |
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Shares |
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Value |
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Common Stocks96.1% |
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Australia3.7% |
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National Australia Bank, Ltd. |
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26,700 |
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$ |
523,212 |
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TABCORP Holdings, Ltd. |
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144,277 |
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768,748 |
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Telstra Corp., Ltd. |
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315,269 |
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862,478 |
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Transurban Group |
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218,260 |
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778,974 |
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Total Australia |
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2,933,412 |
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Brazil6.1% |
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Banco do Brasil SA |
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37,000 |
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505,291 |
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Cielo SA (b) |
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169,200 |
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1,424,842 |
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Redecard SA (b) |
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145,900 |
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2,061,191 |
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Souza Cruz SA |
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22,480 |
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846,892 |
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Total Brazil |
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4,838,216 |
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China1.6% |
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China Construction Bank Corp. |
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1,074,000 |
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874,438 |
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Industrial and Commercial |
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Bank of China, Ltd., Class H |
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562,000 |
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413,548 |
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Total China |
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1,287,986 |
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Cyprus0.8% |
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Bank of Cyprus Public Co., Ltd. |
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149,300 |
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602,486 |
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Egypt0.7% |
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Orascom Construction Industries |
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13,520 |
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541,132 |
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Finland2.3% |
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Sampo Oyj, A Shares |
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83,923 |
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|
1,782,600 |
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France4.8% |
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AXA SA |
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32,530 |
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|
506,987 |
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Total SA |
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46,535 |
|
|
2,103,505 |
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Vivendi |
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55,180 |
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|
1,134,623 |
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Total France |
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3,745,115 |
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Germany1.9% |
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Allianz SE |
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7,315 |
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732,160 |
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E.ON AG |
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28,200 |
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764,863 |
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Total Germany |
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1,497,023 |
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Greece0.5% |
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OPAP SA |
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32,032 |
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399,929 |
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Hong Kong3.1% |
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Esprit Holdings, Ltd. |
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261,606 |
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1,429,495 |
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Pacific Basin Shipping, Ltd. |
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1,579,000 |
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|
991,577 |
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Total Hong Kong |
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2,421,072 |
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|
||
|
|||||||
Ireland0.4% |
|
|
|
|
|
|
|
Willis Group Holdings PLC |
|
|
11,400 |
|
|
342,570 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
Shares |
|
Value |
|
||
|
|||||||
|
|||||||
Israel2.7% |
|
|
|
|
|
|
|
Cellcom Israel, Ltd. |
|
|
30,200 |
|
$ |
755,000 |
|
Israel Chemicals, Ltd. |
|
|
134,458 |
|
|
1,409,049 |
|
|
|
|
|
|
|
||
Total Israel |
|
|
|
|
|
2,164,049 |
|
|
|
|
|
|
|
||
|
|||||||
Italy3.4% |
|
|
|
|
|
|
|
Atlantia SpA |
|
|
36,301 |
|
|
647,660 |
|
Eni SpA |
|
|
66,712 |
|
|
1,239,181 |
|
Terna SpA |
|
|
215,600 |
|
|
778,416 |
|
|
|
|
|
|
|
||
Total Italy |
|
|
|
|
|
2,665,257 |
|
|
|
|
|
|
|
||
|
|||||||
Japan2.2% |
|
|
|
|
|
|
|
Mizuho Financial Group, Inc. |
|
|
213,100 |
|
|
354,303 |
|
Nintendo Co., Ltd. |
|
|
4,700 |
|
|
1,400,724 |
|
|
|
|
|
|
|
||
Total Japan |
|
|
|
|
|
1,755,027 |
|
|
|
|
|
|
|
||
|
|||||||
New Zealand1.0% |
|
|
|
|
|
|
|
Telecom Corp. of New Zealand, Ltd. |
|
|
610,853 |
|
|
791,880 |
|
|
|
|
|
|
|
||
|
|||||||
Norway0.9% |
|
|
|
|
|
|
|
Orkla ASA |
|
|
106,360 |
|
|
685,450 |
|
|
|
|
|
|
|
||
|
|||||||
Philippines1.5% |
|
|
|
|
|
|
|
Philippine Long Distance Telephone |
|
|
|
|
|
|
|
Co. Sponsored ADR |
|
|
23,200 |
|
|
1,182,504 |
|
|
|
|
|
|
|
||
|
|||||||
Russia0.8% |
|
|
|
|
|
|
|
Mobile TeleSystems Sponsored ADR |
|
|
31,000 |
|
|
593,960 |
|
|
|
|
|
|
|
||
|
|||||||
Singapore1.0% |
|
|
|
|
|
|
|
DBS Group Holdings, Ltd. |
|
|
82,000 |
|
|
801,658 |
|
|
|
|
|
|
|
||
|
|||||||
South Africa3.0% |
|
|
|
|
|
|
|
Kumba Iron Ore, Ltd. (b) |
|
|
47,515 |
|
|
1,975,138 |
|
Tiger Brands, Ltd. |
|
|
18,235 |
|
|
404,497 |
|
|
|
|
|
|
|
||
Total South Africa |
|
|
|
|
|
2,379,635 |
|
|
|
|
|
|
|
||
|
|||||||
South Korea0.5% |
|
|
|
|
|
|
|
Macquarie Korea Infrastructure |
|
|
|
|
|
|
|
Fund GDR |
|
|
102,050 |
|
|
380,819 |
|
|
|
|
|
|
|
||
|
|||||||
Spain2.9% |
|
|
|
|
|
|
|
Banco Popular Espanol SA |
|
|
91,655 |
|
|
471,522 |
|
Banco Santander SA |
|
|
107,700 |
|
|
1,151,066 |
|
Bolsas y Mercados Espanoles |
|
|
30,430 |
|
|
666,454 |
|
|
|
|
|
|
|
||
Total Spain |
|
|
|
|
|
2,289,042 |
|
|
|
|
|
|
|
||
|
|||||||
Switzerland3.5% |
|
|
|
|
|
|
|
Credit Suisse Group AG |
|
|
23,300 |
|
|
884,572 |
|
Zurich Financial Services AG (b) |
|
|
8,471 |
|
|
1,882,270 |
|
|
|
|
|
|
|
||
Total Switzerland |
|
|
|
|
|
2,766,842 |
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
8
|
Lazard World Dividend & Income Fund, Inc. |
Portfolio of Investments (continued) |
June 30, 2010 (unaudited) |
|
|
|
|
|
|
|
|
Description |
|
Shares |
|
Value |
|
||
|
|||||||
|
|||||||
Taiwan4.4% |
|
|
|
|
|
|
|
HTC Corp. |
|
|
60,000 |
|
$ |
802,950 |
|
Siliconware Precision Industries Co. |
|
|
508,000 |
|
|
554,142 |
|
Taiwan Semiconductor |
|
|
|
|
|
|
|
Manufacturing Co., Ltd. (b) |
|
|
1,122,490 |
|
|
2,117,016 |
|
|
|
|
|
|
|
||
Total Taiwan |
|
|
|
|
|
3,474,108 |
|
|
|
|
|
|
|
||
|
|||||||
Turkey1.0% |
|
|
|
|
|
|
|
Ford Otomotiv Sanayi AS |
|
|
123,795 |
|
|
805,311 |
|
|
|
|
|
|
|
||
|
|||||||
United Kingdom8.7% |
|
|
|
|
|
|
|
BAE Systems PLC |
|
|
138,000 |
|
|
646,393 |
|
British American Tobacco PLC |
|
|
33,600 |
|
|
1,072,561 |
|
Man Group PLC (b) |
|
|
414,650 |
|
|
1,383,408 |
|
Prudential PLC |
|
|
81,683 |
|
|
620,586 |
|
Royal Dutch Shell PLC, A Shares (b) |
|
|
90,500 |
|
|
2,296,359 |
|
Vodafone Group PLC (b) |
|
|
404,250 |
|
|
840,452 |
|
|
|
|
|
|
|
||
Total United Kingdom |
|
|
|
|
|
6,859,759 |
|
|
|
|
|
|
|
||
|
|||||||
United States32.7% |
|
|
|
|
|
|
|
Altria Group, Inc. (b) |
|
|
96,400 |
|
|
1,931,856 |
|
American Electric Power Co., Inc. |
|
|
28,000 |
|
|
904,400 |
|
Analog Devices, Inc. (b) |
|
|
15,300 |
|
|
426,258 |
|
AT&T, Inc. (b) |
|
|
105,350 |
|
|
2,548,417 |
|
Caterpillar, Inc. |
|
|
13,400 |
|
|
804,938 |
|
ConocoPhillips (b) |
|
|
25,900 |
|
|
1,271,431 |
|
Darden Restaurants, Inc. |
|
|
20,800 |
|
|
808,080 |
|
Emerson Electric Co. |
|
|
24,700 |
|
|
1,079,143 |
|
Genuine Parts Co. (b) |
|
|
25,700 |
|
|
1,013,865 |
|
Intel Corp. |
|
|
38,200 |
|
|
742,990 |
|
Kimberly-Clark Corp. |
|
|
9,300 |
|
|
563,859 |
|
Mattel, Inc. (b) |
|
|
40,500 |
|
|
856,980 |
|
McDonalds Corp. (b) |
|
|
30,000 |
|
|
1,976,100 |
|
Medtronic, Inc. |
|
|
10,600 |
|
|
384,462 |
|
Merck & Co., Inc. (b) |
|
|
36,000 |
|
|
1,258,920 |
|
Nucor Corp. |
|
|
9,900 |
|
|
378,972 |
|
NYSE Euronext |
|
|
44,400 |
|
|
1,226,772 |
|
Pfizer, Inc. (b) |
|
|
49,000 |
|
|
698,740 |
|
Public Storage REIT |
|
|
4,400 |
|
|
386,804 |
|
Reynolds American, Inc. (b) |
|
|
40,000 |
|
|
2,084,800 |
|
Southern Copper Corp. |
|
|
27,400 |
|
|
727,196 |
|
Spectra Energy Corp. |
|
|
27,700 |
|
|
555,939 |
|
UDR, Inc. REIT |
|
|
32,100 |
|
|
614,073 |
|
Verizon Communications, Inc. (b) |
|
|
70,400 |
|
|
1,972,608 |
|
Wal-Mart Stores, Inc. |
|
|
10,900 |
|
|
523,963 |
|
|
|
|
|
|
|
||
Total United States |
|
|
|
|
|
25,741,566 |
|
|
|
|
|
|
|
||
Total Common Stocks |
|
|
|
|
|
|
|
(Identified cost $82,153,813) |
|
|
|
|
|
75,728,408 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
Shares |
|
Value |
|
||
|
|||||||
Limited Partnership Units1.4% |
|
|
|
|
|
|
|
|
|||||||
United States1.4% |
|
|
|
|
|
|
|
Energy Transfer Equity LP |
|
|
10,600 |
|
$ |
357,750 |
|
Enterprise GP Holdings LP (b) |
|
|
7,800 |
|
|
369,954 |
|
Enterprise Products Partners LP |
|
|
10,400 |
|
|
367,848 |
|
|
|
|
|
|
|
||
Total United States |
|
|
|
|
|
|
|
(Identified cost $916,251) |
|
|
|
|
|
1,095,552 |
|
|
|
|
|
|
|
||
|
|||||||
Preferred Stocks1.9% |
|
|
|
|
|
|
|
|
|||||||
Brazil1.1% |
|
|
|
|
|
|
|
Eletropaulo Metropolitana SA, |
|
|
|
|
|
|
|
B Shares |
|
|
42,700 |
|
|
850,688 |
|
|
|
|
|
|
|
||
|
|||||||
United States0.8% |
|
|
|
|
|
|
|
Bank of America Corp. |
|
|
695 |
|
|
631,060 |
|
|
|
|
|
|
|
||
Total Preferred Stocks |
|
|
|
|
|
|
|
(Identified cost $1,564,265) |
|
|
|
|
|
1,481,748 |
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
Description |
|
Principal |
|
Value |
|
||
|
|||||||
|
|||||||
Foreign Government |
|
|
|
|
|
|
|
Obligations10.4% |
|
|
|
|
|
|
|
|
|||||||
Brazil3.9% |
|
|
|
|
|
|
|
Brazil NTN-F: |
|
|
|
|
|
|
|
10.00%, 01/01/12 |
|
|
3,900 |
|
|
2,206,086 |
|
10.00%, 01/01/13 |
|
|
1,648 |
|
|
872,562 |
|
|
|
|
|
|
|
||
Total Brazil |
|
|
|
|
|
3,078,648 |
|
|
|
|
|
|
|
||
|
|||||||
Egypt3.4% |
|
|
|
|
|
|
|
Egypt Treasury Bills: |
|
|
|
|
|
|
|
0.00%, 07/13/10 |
|
|
975 |
|
|
170,798 |
|
0.00%, 08/03/10 |
|
|
5,775 |
|
|
1,005,789 |
|
0.00%, 09/28/10 |
|
|
4,650 |
|
|
797,194 |
|
0.00%, 10/12/10 |
|
|
2,725 |
|
|
465,322 |
|
0.00%, 11/30/10 |
|
|
900 |
|
|
151,537 |
|
0.00%, 02/08/11 |
|
|
650 |
|
|
107,236 |
|
|
|
|
|
|
|
||
Total Egypt |
|
|
|
|
|
2,697,876 |
|
|
|
|
|
|
|
||
|
|||||||
Ghana1.1% |
|
|
|
|
|
|
|
Ghana Government Bonds: |
|
|
|
|
|
|
|
14.00%, 03/07/11 |
|
|
560 |
|
|
383,052 |
|
16.00%, 05/02/11 |
|
|
390 |
|
|
271,725 |
|
13.67%, 06/15/12 |
|
|
190 |
|
|
128,274 |
|
15.00%, 12/10/12 |
|
|
170 |
|
|
117,827 |
|
|
|
|
|
|
|
||
Total Ghana |
|
|
|
|
|
900,878 |
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
9
|
Lazard World Dividend & Income Fund, Inc. |
Portfolio of Investments (continued) |
June 30, 2010 (unaudited) |
|
|
|
|
|
|
|
|
Description |
|
Principal |
|
Value |
|
||
|
|||||||
|
|||||||
Mexico0.6% |
|
|
|
|
|
|
|
Mexican Bonos, |
|
|
|
|
|
|
|
8.00%, 12/17/15 |
|
|
5,500 |
|
$ |
458,225 |
|
|
|
|
|
|
|
||
|
|||||||
Poland0.4% |
|
|
|
|
|
|
|
Poland Government Bonds: |
|
|
|
|
|
|
|
4.75%, 04/25/12 |
|
|
933 |
|
|
275,747 |
|
3.00%, 08/24/16 |
|
|
259 |
|
|
74,304 |
|
|
|
|
|
|
|
||
Total Poland |
|
|
|
|
|
350,051 |
|
|
|
|
|
|
|
||
|
|||||||
Romania0.4% |
|
|
|
|
|
|
|
Romania Government Bond, |
|
|
|
|
|
|
|
11.25%, 10/25/12 |
|
|
940 |
|
|
280,498 |
|
|
|
|
|
|
|
||
|
|||||||
Turkey0.6% |
|
|
|
|
|
|
|
Turkey Government Bond, |
|
|
|
|
|
|
|
10.00%, 02/15/12 |
|
|
647 |
|
|
452,366 |
|
|
|
|
|
|
|
||
Total Foreign Government |
|
|
|
|
|
|
|
Obligations |
|
|
|
|
|
|
|
(Identified cost $7,875,890) |
|
|
|
|
|
8,218,542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares |
|
Value |
|
||
|
|||||||
|
|||||||
Short-Term Investment4.3% |
|
|
|
|
|
|
|
State Street Institutional Treasury |
|
|
|
|
|
|
|
Money Market Fund |
|
|
|
|
|
|
|
(Identified cost $3,366,989) |
|
|
3,366,989 |
|
$ |
3,366,989 |
|
|
|
|
|
|
|
||
|
|||||||
Total Investments114.1% |
|
|
|
|
|
|
|
(Identified cost $95,877,208) (a) |
|
|
|
|
$ |
89,891,239 |
|
|
|||||||
Liabilities in Excess of Cash |
|
|
|
|
|
|
|
and Other Assets(14.1)% |
|
|
|
|
|
(11,111,516 |
) |
|
|
|
|
|
|
||
Net Assets100.0% |
|
|
|
|
$ |
78,779,723 |
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
10
|
Lazard World Dividend & Income Fund, Inc. |
Portfolio of Investments (continued) |
June 30, 2010 (unaudited) |
Forward Currency Purchase Contracts open at June 30, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
||||
|
|
|
|
|
|
|
|||||||||||
CLP |
|
07/12/10 |
|
53,655,000 |
|
$ |
98,000 |
|
$ |
98,280 |
|
$ |
280 |
|
$ |
|
|
CLP |
|
07/20/10 |
|
128,348,600 |
|
|
236,000 |
|
|
235,137 |
|
|
|
|
|
863 |
|
CLP |
|
08/24/10 |
|
238,362,750 |
|
|
447,000 |
|
|
436,745 |
|
|
|
|
|
10,255 |
|
CNY |
|
08/24/10 |
|
950,622 |
|
|
141,000 |
|
|
140,237 |
|
|
|
|
|
763 |
|
CNY |
|
08/24/10 |
|
350,610 |
|
|
52,000 |
|
|
51,722 |
|
|
|
|
|
278 |
|
CNY |
|
03/17/11 |
|
7,825,873 |
|
|
1,177,000 |
|
|
1,164,859 |
|
|
|
|
|
12,141 |
|
CNY |
|
05/27/11 |
|
434,165 |
|
|
63,689 |
|
|
64,852 |
|
|
1,163 |
|
|
|
|
COP |
|
07/19/10 |
|
819,513,000 |
|
|
414,000 |
|
|
431,402 |
|
|
17,402 |
|
|
|
|
CZK |
|
07/16/10 |
|
4,270,000 |
|
|
201,390 |
|
|
203,042 |
|
|
1,652 |
|
|
|
|
CZK |
|
07/28/10 |
|
10,158,305 |
|
|
486,118 |
|
|
483,008 |
|
|
|
|
|
3,110 |
|
EUR |
|
07/01/10 |
|
558,333 |
|
|
691,468 |
|
|
682,758 |
|
|
|
|
|
8,710 |
|
EUR |
|
07/01/10 |
|
557,000 |
|
|
749,581 |
|
|
681,127 |
|
|
|
|
|
68,454 |
|
EUR |
|
07/01/10 |
|
404,000 |
|
|
499,368 |
|
|
494,031 |
|
|
|
|
|
5,337 |
|
EUR |
|
07/01/10 |
|
58,400 |
|
|
72,581 |
|
|
71,414 |
|
|
|
|
|
1,167 |
|
EUR |
|
07/06/10 |
|
1,404,072 |
|
|
1,717,883 |
|
|
1,717,002 |
|
|
|
|
|
881 |
|
EUR |
|
07/06/10 |
|
305,252 |
|
|
372,331 |
|
|
373,284 |
|
|
953 |
|
|
|
|
EUR |
|
08/04/10 |
|
638,619 |
|
|
780,935 |
|
|
781,058 |
|
|
123 |
|
|
|
|
EUR |
|
10/01/10 |
|
702,051 |
|
|
865,745 |
|
|
858,936 |
|
|
|
|
|
6,809 |
|
EUR |
|
10/19/10 |
|
184,938 |
|
|
231,774 |
|
|
226,288 |
|
|
|
|
|
5,486 |
|
EUR |
|
12/09/10 |
|
1,796,000 |
|
|
2,666,342 |
|
|
2,198,169 |
|
|
|
|
|
468,173 |
|
GHC |
|
07/07/10 |
|
70,511 |
|
|
49,000 |
|
|
48,756 |
|
|
|
|
|
244 |
|
GHC |
|
07/07/10 |
|
330,000 |
|
|
225,256 |
|
|
228,183 |
|
|
2,927 |
|
|
|
|
GHC |
|
07/26/10 |
|
166,518 |
|
|
114,880 |
|
|
114,345 |
|
|
|
|
|
535 |
|
GHC |
|
07/30/10 |
|
70,462 |
|
|
48,692 |
|
|
48,315 |
|
|
|
|
|
377 |
|
GHC |
|
10/11/11 |
|
159,796 |
|
|
73,639 |
|
|
97,764 |
|
|
24,125 |
|
|
|
|
HUF |
|
07/01/10 |
|
147,939,378 |
|
|
751,870 |
|
|
633,763 |
|
|
|
|
|
118,107 |
|
HUF |
|
07/01/10 |
|
11,464,830 |
|
|
48,675 |
|
|
49,115 |
|
|
440 |
|
|
|
|
HUF |
|
07/06/10 |
|
57,398,565 |
|
|
247,160 |
|
|
245,780 |
|
|
|
|
|
1,380 |
|
HUF |
|
07/06/10 |
|
331,529,435 |
|
|
1,420,251 |
|
|
1,419,608 |
|
|
|
|
|
643 |
|
HUF |
|
08/02/10 |
|
163,185,000 |
|
|
712,548 |
|
|
696,627 |
|
|
|
|
|
15,921 |
|
HUF |
|
08/04/10 |
|
183,558,264 |
|
|
821,136 |
|
|
783,444 |
|
|
|
|
|
37,692 |
|
HUF |
|
09/03/10 |
|
115,238,623 |
|
|
518,417 |
|
|
490,400 |
|
|
|
|
|
28,017 |
|
HUF |
|
09/03/10 |
|
57,749,800 |
|
|
248,672 |
|
|
245,755 |
|
|
|
|
|
2,917 |
|
HUF |
|
12/09/10 |
|
129,665,510 |
|
|
659,748 |
|
|
547,500 |
|
|
|
|
|
112,248 |
|
HUF |
|
12/09/10 |
|
372,226,690 |
|
|
1,646,490 |
|
|
1,571,690 |
|
|
|
|
|
74,800 |
|
IDR |
|
07/19/10 |
|
5,237,783,000 |
|
|
571,000 |
|
|
576,182 |
|
|
5,182 |
|
|
|
|
IDR |
|
07/27/10 |
|
4,205,250,000 |
|
|
450,000 |
|
|
461,988 |
|
|
11,988 |
|
|
|
|
IDR |
|
07/28/10 |
|
1,795,655,000 |
|
|
197,000 |
|
|
197,238 |
|
|
238 |
|
|
|
|
IDR |
|
11/08/10 |
|
3,610,000,000 |
|
|
380,000 |
|
|
390,069 |
|
|
10,069 |
|
|
|
|
ILS |
|
07/12/10 |
|
4,060,620 |
|
|
1,046,444 |
|
|
1,044,471 |
|
|
|
|
|
1,973 |
|
ILS |
|
08/02/10 |
|
331,556 |
|
|
86,000 |
|
|
85,277 |
|
|
|
|
|
723 |
|
ILS |
|
09/01/10 |
|
1,888,976 |
|
|
487,000 |
|
|
485,787 |
|
|
|
|
|
1,213 |
|
INR |
|
07/06/10 |
|
14,523,000 |
|
|
309,000 |
|
|
312,692 |
|
|
3,692 |
|
|
|
|
INR |
|
07/12/10 |
|
17,322,780 |
|
|
366,000 |
|
|
372,691 |
|
|
6,691 |
|
|
|
|
INR |
|
07/26/10 |
|
14,442,900 |
|
|
310,000 |
|
|
310,181 |
|
|
181 |
|
|
|
|
INR |
|
08/12/10 |
|
16,973,520 |
|
|
359,000 |
|
|
363,801 |
|
|
4,801 |
|
|
|
|
INR |
|
08/25/10 |
|
11,043,200 |
|
|
238,000 |
|
|
236,380 |
|
|
|
|
|
1,620 |
|
INR |
|
08/30/10 |
|
28,244,520 |
|
|
603,000 |
|
|
604,266 |
|
|
1,266 |
|
|
|
|
The accompanying notes are an integral part of these financial statements.
11
|
Lazard World Dividend & Income Fund, Inc. |
Portfolio of Investments (continued) |
June 30, 2010 (unaudited) |
Forward Currency Purchase Contracts open at June 30, 2010 (continued):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
||||
|
|
|
|
|
|
|
|||||||||||
INR |
|
09/24/10 |
|
6,631,230 |
|
$ |
142,515 |
|
$ |
141,479 |
|
$ |
|
|
$ |
1,036 |
|
INR |
|
10/06/10 |
|
19,142,900 |
|
|
406,000 |
|
|
407,860 |
|
|
1,860 |
|
|
|
|
KES |
|
07/06/10 |
|
47,003,060 |
|
|
586,000 |
|
|
574,961 |
|
|
|
|
|
11,039 |
|
KES |
|
07/09/10 |
|
5,566,480 |
|
|
68,000 |
|
|
68,091 |
|
|
91 |
|
|
|
|
KES |
|
07/16/10 |
|
37,648,140 |
|
|
466,000 |
|
|
460,527 |
|
|
|
|
|
5,473 |
|
KES |
|
07/21/10 |
|
25,035,600 |
|
|
310,000 |
|
|
306,245 |
|
|
|
|
|
3,755 |
|
KES |
|
07/26/10 |
|
12,731,000 |
|
|
159,476 |
|
|
155,731 |
|
|
|
|
|
3,745 |
|
KRW |
|
07/02/10 |
|
280,525,000 |
|
|
252,327 |
|
|
229,569 |
|
|
|
|
|
22,758 |
|
KRW |
|
07/02/10 |
|
239,442,800 |
|
|
211,000 |
|
|
195,949 |
|
|
|
|
|
15,051 |
|
KRW |
|
07/02/10 |
|
280,525,000 |
|
|
228,051 |
|
|
229,569 |
|
|
1,518 |
|
|
|
|
KRW |
|
07/08/10 |
|
381,575,000 |
|
|
313,666 |
|
|
312,199 |
|
|
|
|
|
1,467 |
|
KRW |
|
08/03/10 |
|
534,207,150 |
|
|
459,000 |
|
|
436,692 |
|
|
|
|
|
22,308 |
|
KRW |
|
08/25/10 |
|
197,559,000 |
|
|
162,000 |
|
|
161,379 |
|
|
|
|
|
621 |
|
KRW |
|
08/25/10 |
|
484,387,200 |
|
|
396,000 |
|
|
395,679 |
|
|
|
|
|
321 |
|
KRW |
|
09/01/10 |
|
358,162,000 |
|
|
292,222 |
|
|
292,503 |
|
|
281 |
|
|
|
|
KRW |
|
11/19/10 |
|
1,215,007,200 |
|
|
1,058,000 |
|
|
991,160 |
|
|
|
|
|
66,840 |
|
KZT |
|
09/29/10 |
|
21,135,400 |
|
|
143,000 |
|
|
142,887 |
|
|
|
|
|
113 |
|
KZT |
|
09/29/10 |
|
22,792,000 |
|
|
154,000 |
|
|
154,086 |
|
|
86 |
|
|
|
|
KZT |
|
09/30/10 |
|
21,135,400 |
|
|
143,000 |
|
|
142,882 |
|
|
|
|
|
118 |
|
KZT |
|
09/30/10 |
|
10,064,000 |
|
|
68,000 |
|
|
68,036 |
|
|
36 |
|
|
|
|
KZT |
|
10/01/10 |
|
29,707,800 |
|
|
201,000 |
|
|
200,828 |
|
|
|
|
|
172 |
|
KZT |
|
11/02/10 |
|
37,958,900 |
|
|
257,000 |
|
|
256,324 |
|
|
|
|
|
676 |
|
KZT |
|
11/02/10 |
|
39,354,700 |
|
|
266,000 |
|
|
265,749 |
|
|
|
|
|
251 |
|
KZT |
|
12/10/10 |
|
22,792,000 |
|
|
154,000 |
|
|
153,703 |
|
|
|
|
|
297 |
|
KZT |
|
12/10/10 |
|
11,407,550 |
|
|
77,000 |
|
|
76,929 |
|
|
|
|
|
71 |
|
KZT |
|
12/10/10 |
|
11,411,400 |
|
|
77,000 |
|
|
76,955 |
|
|
|
|
|
45 |
|
KZT |
|
12/15/10 |
|
9,768,000 |
|
|
66,000 |
|
|
65,861 |
|
|
|
|
|
139 |
|
KZT |
|
12/15/10 |
|
9,768,000 |
|
|
66,000 |
|
|
65,861 |
|
|
|
|
|
139 |
|
KZT |
|
12/20/10 |
|
33,869,100 |
|
|
229,000 |
|
|
228,325 |
|
|
|
|
|
675 |
|
KZT |
|
12/20/10 |
|
9,909,300 |
|
|
67,000 |
|
|
66,802 |
|
|
|
|
|
198 |
|
KZT |
|
12/20/10 |
|
8,282,400 |
|
|
56,000 |
|
|
55,835 |
|
|
|
|
|
165 |
|
MXN |
|
07/06/10 |
|
6,157,604 |
|
|
499,907 |
|
|
475,924 |
|
|
|
|
|
23,983 |
|
MXN |
|
07/06/10 |
|
4,166,668 |
|
|
337,000 |
|
|
322,044 |
|
|
|
|
|
14,956 |
|
MXN |
|
07/06/10 |
|
5,180,558 |
|
|
405,000 |
|
|
400,408 |
|
|
|
|
|
4,592 |
|
MXN |
|
07/13/10 |
|
3,088,674 |
|
|
244,000 |
|
|
238,558 |
|
|
|
|
|
5,442 |
|
MXN |
|
08/04/10 |
|
8,260,000 |
|
|
667,982 |
|
|
636,568 |
|
|
|
|
|
31,414 |
|
MXN |
|
08/25/10 |
|
3,358,656 |
|
|
252,000 |
|
|
258,260 |
|
|
6,260 |
|
|
|
|
MXN |
|
09/17/10 |
|
4,584,000 |
|
|
359,829 |
|
|
351,617 |
|
|
|
|
|
8,212 |
|
MXN |
|
09/17/10 |
|
2,823,754 |
|
|
218,000 |
|
|
216,597 |
|
|
|
|
|
1,403 |
|
MYR |
|
07/06/10 |
|
1,203,591 |
|
|
366,000 |
|
|
371,697 |
|
|
5,697 |
|
|
|
|
MYR |
|
07/06/10 |
|
1,221,000 |
|
|
369,776 |
|
|
377,074 |
|
|
7,298 |
|
|
|
|
MYR |
|
07/22/10 |
|
1,361,935 |
|
|
421,000 |
|
|
420,290 |
|
|
|
|
|
710 |
|
MYR |
|
07/26/10 |
|
1,810,930 |
|
|
563,275 |
|
|
558,746 |
|
|
|
|
|
4,529 |
|
MYR |
|
08/24/10 |
|
1,024,164 |
|
|
317,000 |
|
|
315,591 |
|
|
|
|
|
1,409 |
|
MYR |
|
08/24/10 |
|
328,511 |
|
|
102,000 |
|
|
101,229 |
|
|
|
|
|
771 |
|
MYR |
|
09/03/10 |
|
1,493,068 |
|
|
460,000 |
|
|
459,880 |
|
|
|
|
|
120 |
|
MYR |
|
10/06/10 |
|
1,221,000 |
|
|
375,658 |
|
|
375,512 |
|
|
|
|
|
146 |
|
PHP |
|
07/01/10 |
|
17,337,040 |
|
|
373,000 |
|
|
374,006 |
|
|
1,006 |
|
|
|
|
The accompanying notes are an integral part of these financial statements.
12
|
Lazard World Dividend & Income Fund, Inc. |
Portfolio of Investments (continued) |
June 30, 2010 (unaudited) |
Forward Currency Purchase Contracts open at June 30, 2010 (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||||
|
|
|
|
|
|
|
||||||||||||||
PHP |
|
07/19/10 |
|
18,192,120 |
|
$ |
404,000 |
|
$ |
391,729 |
|
$ |
|
|
$ |
12,271 |
|
|||
PHP |
|
07/28/10 |
|
17,213,350 |
|
|
360,187 |
|
|
370,292 |
|
|
10,105 |
|
|
|
|
|||
PHP |
|
08/02/10 |
|
21,361,860 |
|
|
459,000 |
|
|
459,286 |
|
|
286 |
|
|
|
|
|||
PHP |
|
08/20/10 |
|
15,265,600 |
|
|
329,000 |
|
|
327,606 |
|
|
|
|
|
1,394 |
|
|||
PHP |
|
08/31/10 |
|
18,465,480 |
|
|
396,000 |
|
|
395,827 |
|
|
|
|
|
173 |
|
|||
PHP |
|
09/28/10 |
|
13,218,930 |
|
|
283,000 |
|
|
282,651 |
|
|
|
|
|
349 |
|
|||
PLN |
|
07/06/10 |
|
432,289 |
|
|
146,626 |
|
|
127,395 |
|
|
|
|
|
19,231 |
|
|||
PLN |
|
07/06/10 |
|
649,152 |
|
|
199,776 |
|
|
191,304 |
|
|
|
|
|
8,472 |
|
|||
PLN |
|
07/06/10 |
|
183,216 |
|
|
54,059 |
|
|
53,994 |
|
|
|
|
|
65 |
|
|||
PLN |
|
07/19/10 |
|
1,070,328 |
|
|
321,150 |
|
|
315,140 |
|
|
|
|
|
6,010 |
|
|||
PLN |
|
07/19/10 |
|
233,654 |
|
|
74,038 |
|
|
68,795 |
|
|
|
|
|
5,243 |
|
|||
PLN |
|
08/16/10 |
|
4,841,118 |
|
|
1,399,673 |
|
|
1,422,719 |
|
|
23,046 |
|
|
|
|
|||
PLN |
|
09/07/10 |
|
1,640,000 |
|
|
481,440 |
|
|
481,303 |
|
|
|
|
|
137 |
|
|||
RON |
|
07/16/10 |
|
1,720,274 |
|
|
483,916 |
|
|
480,748 |
|
|
|
|
|
3,168 |
|
|||
RON |
|
07/19/10 |
|
1,911,000 |
|
|
552,560 |
|
|
533,794 |
|
|
|
|
|
18,766 |
|
|||
RON |
|
07/21/10 |
|
1,360,638 |
|
|
397,737 |
|
|
379,942 |
|
|
|
|
|
17,795 |
|
|||
RON |
|
07/27/10 |
|
1,325,712 |
|
|
392,774 |
|
|
369,836 |
|
|
|
|
|
22,938 |
|
|||
RON |
|
08/11/10 |
|
942,565 |
|
|
265,145 |
|
|
262,312 |
|
|
|
|
|
2,833 |
|
|||
RON |
|
10/19/10 |
|
791,350 |
|
|
275,415 |
|
|
217,781 |
|
|
|
|
|
57,634 |
|
|||
RSD |
|
07/07/10 |
|
12,561,000 |
|
|
149,875 |
|
|
146,219 |
|
|
|
|
|
3,656 |
|
|||
RSD |
|
07/08/10 |
|
20,746,000 |
|
|
279,088 |
|
|
241,420 |
|
|
|
|
|
37,668 |
|
|||
RSD |
|
07/20/10 |
|
5,194,000 |
|
|
61,974 |
|
|
60,208 |
|
|
|
|
|
1,766 |
|
|||
RUB |
|
07/26/10 |
|
7,557,158 |
|
|
241,000 |
|
|
241,318 |
|
|
318 |
|
|
|
|
|||
RUB |
|
08/24/10 |
|
13,746,290 |
|
|
443,000 |
|
|
438,159 |
|
|
|
|
|
4,841 |
|
|||
TRY |
|
07/06/10 |
|
1,610,781 |
|
|
1,018,000 |
|
|
1,016,517 |
|
|
|
|
|
1,483 |
|
|||
TRY |
|
07/06/10 |
|
115,734 |
|
|
73,000 |
|
|
73,036 |
|
|
36 |
|
|
|
|
|||
TRY |
|
08/03/10 |
|
1,617,093 |
|
|
1,018,000 |
|
|
1,015,984 |
|
|
|
|
|
2,016 |
|
|||
TRY |
|
08/31/10 |
|
236,970 |
|
|
149,000 |
|
|
148,227 |
|
|
|
|
|
773 |
|
|||
TWD |
|
12/22/10 |
|
13,595,830 |
|
|
439,000 |
|
|
428,435 |
|
|
|
|
|
10,565 |
|
|||
TWD |
|
12/22/10 |
|
13,566,070 |
|
|
425,535 |
|
|
427,498 |
|
|
1,963 |
|
|
|
|
|||
TWD |
|
03/22/11 |
|
13,503,640 |
|
|
439,000 |
|
|
428,273 |
|
|
|
|
|
10,727 |
|
|||
UGX |
|
07/06/10 |
|
405,751,000 |
|
|
181,139 |
|
|
177,805 |
|
|
|
|
|
3,334 |
|
|||
UGX |
|
07/16/10 |
|
821,250,000 |
|
|
365,000 |
|
|
359,357 |
|
|
|
|
|
5,643 |
|
|||
UGX |
|
07/16/10 |
|
257,721,000 |
|
|
113,910 |
|
|
112,772 |
|
|
|
|
|
1,138 |
|
|||
UGX |
|
07/20/10 |
|
421,261,000 |
|
|
185,782 |
|
|
184,225 |
|
|
|
|
|
1,557 |
|
|||
UGX |
|
08/04/10 |
|
1,027,564,000 |
|
|
457,508 |
|
|
448,359 |
|
|
|
|
|
9,149 |
|
|||
ZMK |
|
07/12/10 |
|
439,647,000 |
|
|
92,102 |
|
|
84,842 |
|
|
|
|
|
7,260 |
|
|||
ZMK |
|
07/12/10 |
|
1,525,400,000 |
|
|
290,000 |
|
|
294,366 |
|
|
4,366 |
|
|
|
|
|||
ZMK |
|
07/14/10 |
|
1,285,104,000 |
|
|
247,994 |
|
|
247,939 |
|
|
|
|
|
55 |
|
|||
ZMK |
|
07/21/10 |
|
691,245,000 |
|
|
135,858 |
|
|
133,259 |
|
|
|
|
|
2,599 |
|
|||
ZMK |
|
07/28/10 |
|
1,352,344,000 |
|
|
264,388 |
|
|
260,503 |
|
|
|
|
|
3,885 |
|
|||
ZMK |
|
08/12/10 |
|
1,417,525,000 |
|
|
284,358 |
|
|
272,506 |
|
|
|
|
|
11,852 |
|
|||
ZMK |
|
08/31/10 |
|
1,352,344,000 |
|
|
263,615 |
|
|
259,273 |
|
|
|
|
|
4,342 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Total Forward Currency Purchase Contracts |
|
$ |
53,712,389 |
|
$ |
52,323,030 |
|
$ |
157,426 |
|
|
$ |
1,546,785 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
13
|
Lazard World Dividend & Income Fund, Inc. |
Portfolio of Investments (continued) |
June 30, 2010 (unaudited) |
Forward Currency Sale Contracts open at June 30, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
||||
|
|
|
|
|
|
|
|||||||||||
BRL |
|
08/03/10 |
|
2,010,802 |
|
$ |
1,073,000 |
|
$ |
1,106,674 |
|
$ |
|
|
$ |
33,674 |
|
CNY |
|
08/24/10 |
|
1,301,232 |
|
|
190,378 |
|
|
191,960 |
|
|
|
|
|
1,582 |
|
COP |
|
07/19/10 |
|
819,513,000 |
|
|
416,684 |
|
|
431,402 |
|
|
|
|
|
14,718 |
|
EUR |
|
07/01/10 |
|
41,000 |
|
|
48,675 |
|
|
50,137 |
|
|
|
|
|
1,462 |
|
EUR |
|
07/01/10 |
|
550,923 |
|
|
751,870 |
|
|
673,696 |
|
|
78,174 |
|
|
|
|
EUR |
|
07/01/10 |
|
181,541 |
|
|
228,000 |
|
|
221,997 |
|
|
6,003 |
|
|
|
|
EUR |
|
07/01/10 |
|
702,051 |
|
|
865,278 |
|
|
858,503 |
|
|
6,775 |
|
|
|
|
EUR |
|
07/01/10 |
|
135,808 |
|
|
174,500 |
|
|
166,073 |
|
|
8,427 |
|
|
|
|
EUR |
|
07/06/10 |
|
199,000 |
|
|
247,160 |
|
|
243,352 |
|
|
3,808 |
|
|
|
|
EUR |
|
07/06/10 |
|
1,157,575 |
|
|
1,420,251 |
|
|
1,415,567 |
|
|
4,684 |
|
|
|
|
EUR |
|
07/06/10 |
|
44,000 |
|
|
54,059 |
|
|
53,806 |
|
|
253 |
|
|
|
|
EUR |
|
07/06/10 |
|
161,000 |
|
|
199,776 |
|
|
196,883 |
|
|
2,893 |
|
|
|
|
EUR |
|
07/06/10 |
|
110,000 |
|
|
146,626 |
|
|
134,516 |
|
|
12,110 |
|
|
|
|
EUR |
|
07/07/10 |
|
121,686 |
|
|
149,875 |
|
|
148,807 |
|
|
1,068 |
|
|
|
|
EUR |
|
07/08/10 |
|
205,000 |
|
|
279,088 |
|
|
250,691 |
|
|
28,397 |
|
|
|
|
EUR |
|
07/16/10 |
|
165,848 |
|
|
201,390 |
|
|
202,820 |
|
|
|
|
|
1,430 |
|
EUR |
|
07/16/10 |
|
405,725 |
|
|
483,916 |
|
|
496,174 |
|
|
|
|
|
12,258 |
|
EUR |
|
07/19/10 |
|
58,010 |
|
|
74,038 |
|
|
70,944 |
|
|
3,094 |
|
|
|
|
EUR |
|
07/19/10 |
|
257,000 |
|
|
321,150 |
|
|
314,298 |
|
|
6,852 |
|
|
|
|
EUR |
|
07/19/10 |
|
449,912 |
|
|
552,560 |
|
|
550,219 |
|
|
2,341 |
|
|
|
|
EUR |
|
07/20/10 |
|
50,281 |
|
|
61,974 |
|
|
61,491 |
|
|
483 |
|
|
|
|
EUR |
|
07/21/10 |
|
319,924 |
|
|
397,737 |
|
|
391,254 |
|
|
6,483 |
|
|
|
|
EUR |
|
07/27/10 |
|
313,000 |
|
|
392,774 |
|
|
382,797 |
|
|
9,977 |
|
|
|
|
EUR |
|
07/28/10 |
|
394,000 |
|
|
486,118 |
|
|
481,862 |
|
|
4,256 |
|
|
|
|
EUR |
|
07/30/10 |
|
1,025,877 |
|
|
1,366,823 |
|
|
1,254,661 |
|
|
112,162 |
|
|
|
|
EUR |
|
08/02/10 |
|
569,561 |
|
|
712,548 |
|
|
696,590 |
|
|
15,958 |
|
|
|
|
EUR |
|
08/04/10 |
|
659,049 |
|
|
821,136 |
|
|
806,045 |
|
|
15,091 |
|
|
|
|
EUR |
|
08/11/10 |
|
221,000 |
|
|
265,145 |
|
|
270,303 |
|
|
|
|
|
5,158 |
|
EUR |
|
08/16/10 |
|
1,175,000 |
|
|
1,399,673 |
|
|
1,437,171 |
|
|
|
|
|
37,498 |
|
EUR |
|
08/31/10 |
|
613,900 |
|
|
756,159 |
|
|
750,939 |
|
|
5,220 |
|
|
|
|
EUR |
|
09/03/10 |
|
199,000 |
|
|
248,672 |
|
|
243,426 |
|
|
5,246 |
|
|
|
|
EUR |
|
09/03/10 |
|
415,544 |
|
|
518,417 |
|
|
508,313 |
|
|
10,104 |
|
|
|
|
EUR |
|
09/07/10 |
|
394,231 |
|
|
481,440 |
|
|
482,254 |
|
|
|
|
|
814 |
|
EUR |
|
09/24/10 |
|
1,127,976 |
|
|
1,386,001 |
|
|
1,379,979 |
|
|
6,022 |
|
|
|
|
EUR |
|
10/01/10 |
|
399,975 |
|
|
487,000 |
|
|
489,356 |
|
|
|
|
|
2,356 |
|
EUR |
|
10/19/10 |
|
170,000 |
|
|
275,415 |
|
|
208,010 |
|
|
67,405 |
|
|
|
|
EUR |
|
12/09/10 |
|
1,328,906 |
|
|
1,646,490 |
|
|
1,626,482 |
|
|
20,008 |
|
|
|
|
EUR |
|
12/09/10 |
|
472,112 |
|
|
659,748 |
|
|
577,829 |
|
|
81,919 |
|
|
|
|
HUF |
|
07/01/10 |
|
159,404,208 |
|
|
691,468 |
|
|
682,878 |
|
|
8,590 |
|
|
|
|
HUF |
|
07/06/10 |
|
388,928,000 |
|
|
1,717,883 |
|
|
1,665,388 |
|
|
52,495 |
|
|
|
|
HUF |
|
08/04/10 |
|
183,558,264 |
|
|
780,935 |
|
|
783,444 |
|
|
|
|
|
2,509 |
|
HUF |
|
12/09/10 |
|
501,892,200 |
|
|
2,666,342 |
|
|
2,119,190 |
|
|
547,152 |
|
|
|
|
IDR |
|
07/19/10 |
|
4,054,470,000 |
|
|
449,000 |
|
|
446,012 |
|
|
2,988 |
|
|
|
|
INR |
|
07/06/10 |
|
14,523,000 |
|
|
310,985 |
|
|
312,692 |
|
|
|
|
|
1,707 |
|
JPY |
|
07/21/10 |
|
56,513,310 |
|
|
620,000 |
|
|
639,373 |
|
|
|
|
|
19,373 |
|
JPY |
|
08/10/10 |
|
8,779,130 |
|
|
94,000 |
|
|
99,356 |
|
|
|
|
|
5,356 |
|
JPY |
|
08/25/10 |
|
61,308,390 |
|
|
682,000 |
|
|
694,016 |
|
|
|
|
|
12,016 |
|
JPY |
|
09/24/10 |
|
40,518,267 |
|
|
431,000 |
|
|
458,915 |
|
|
|
|
|
27,915 |
|
The accompanying notes are an integral part of these financial statements.
14
|
Lazard World Dividend & Income Fund, Inc. |
Portfolio of Investments (concluded) |
June 30, 2010 (unaudited) |
Forward Currency Sale Contracts open at June 30, 2010 (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||||
|
|
|
|
|
|
|
||||||||||||||
JPY |
|
09/24/10 |
|
68,700,902 |
|
$ |
761,972 |
|
$ |
778,116 |
|
$ |
|
|
$ |
16,144 |
|
|||
KES |
|
07/16/10 |
|
6,248,550 |
|
|
77,000 |
|
|
76,435 |
|
|
565 |
|
|
|
|
|||
KES |
|
07/16/10 |
|
15,912,260 |
|
|
196,000 |
|
|
194,645 |
|
|
1,355 |
|
|
|
|
|||
KES |
|
07/16/10 |
|
14,839,600 |
|
|
184,000 |
|
|
181,524 |
|
|
2,476 |
|
|
|
|
|||
KRW |
|
07/02/10 |
|
280,525,000 |
|
|
228,051 |
|
|
229,569 |
|
|
|
|
|
1,518 |
|
|||
KRW |
|
07/02/10 |
|
444,927,800 |
|
|
364,098 |
|
|
364,108 |
|
|
|
|
|
10 |
|
|||
KRW |
|
07/02/10 |
|
75,040,000 |
|
|
64,000 |
|
|
61,409 |
|
|
2,591 |
|
|
|
|
|||
MXN |
|
07/06/10 |
|
7,844,367 |
|
|
606,000 |
|
|
606,295 |
|
|
|
|
|
295 |
|
|||
MXN |
|
07/06/10 |
|
2,247,398 |
|
|
174,827 |
|
|
173,702 |
|
|
1,125 |
|
|
|
|
|||
MXN |
|
07/06/10 |
|
5,413,065 |
|
|
434,000 |
|
|
418,378 |
|
|
15,622 |
|
|
|
|
|||
MYR |
|
07/06/10 |
|
1,221,000 |
|
|
376,852 |
|
|
377,074 |
|
|
|
|
|
222 |
|
|||
MYR |
|
07/06/10 |
|
1,203,591 |
|
|
371,593 |
|
|
371,697 |
|
|
|
|
|
104 |
|
|||
PHP |
|
07/01/10 |
|
17,337,040 |
|
|
373,651 |
|
|
374,006 |
|
|
|
|
|
355 |
|
|||
PLN |
|
07/06/10 |
|
1,264,657 |
|
|
372,331 |
|
|
372,693 |
|
|
|
|
|
362 |
|
|||
RON |
|
10/19/10 |
|
791,350 |
|
|
231,774 |
|
|
217,781 |
|
|
13,993 |
|
|
|
|
|||
TWD |
|
12/22/10 |
|
14,605,000 |
|
|
460,000 |
|
|
460,237 |
|
|
|
|
|
237 |
|
|||
TWD |
|
12/22/10 |
|
12,556,900 |
|
|
398,000 |
|
|
395,696 |
|
|
2,304 |
|
|
|
|
|||
TWD |
|
03/22/11 |
|
13,503,640 |
|
|
425,714 |
|
|
428,273 |
|
|
|
|
|
2,559 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total Forward Currency Sale Contracts |
|
$ |
34,785,020 |
|
$ |
33,810,183 |
|
|
|
1,176,469 |
|
|
201,632 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts |
|
$ |
1,333,895 |
|
$ |
1,748,417 |
|
|||||||||||||
|
|
|
|
The accompanying notes are an integral part of these financial statements.
15
|
Lazard World Dividend & Income Fund, Inc. |
June 30, 2010 (unaudited) |
|
|
(a) |
For federal income tax purposes, the aggregate cost was $95,877,208, aggregate gross unrealized appreciation was $5,550,755, aggregate gross unrealized depreciation was $11,536,724 and the net unrealized depreciation was $5,985,969. |
(b) |
Segregated security for forward currency contracts. |
(c) |
Principal amount denominated in respective countrys currency. |
|
|
|
Security Abbreviations: |
|
|
|
||
ADR |
American Depositary Receipt |
|
GDR |
Global Depositary Receipt |
|
NTN-F |
Brazil Sovereign Nota do Tesouro Nacional Series F |
|
REIT |
Real Estate Investment Trust |
|
|
|
|
|
|
Currency Abbreviations: |
|
||||
|
|||||
BRL |
Brazilian Real |
|
KRW |
South Korean Won |
|
CLP |
Chilean Peso |
|
KZT |
Kazakhstani Tenge |
|
CNY |
Chinese Renminbi |
|
MXN |
Mexican New Peso |
|
COP |
Colombian Peso |
|
MYR |
Malaysian Ringgit |
|
CZK |
Czech Koruna |
|
PHP |
Philippine Peso |
|
EUR |
Euro |
|
PLN |
Polish Zloty |
|
GHC |
Ghanaian Cedi |
|
RON |
New Romanian Leu |
|
HUF |
Hungarian Forint |
|
RSD |
Serbian Dinar |
|
IDR |
Indonesian Rupiah |
|
RUB |
Russian Ruble |
|
ILS |
Israeli Shekel |
|
TRY |
New Turkish Lira |
|
INR |
Indian Rupee |
|
TWD |
New Taiwan Dollar |
|
JPY |
Japanese Yen |
|
UGX |
Ugandan Shilling |
|
KES |
Kenyan Shilling |
|
ZMK |
Zambian Kwacha |
|
|
|
|
|
|
Portfolio holdings by industry (as percentage of net assets): |
|||||
Agriculture |
|
|
1.8 |
% |
|
Alcohol & Tobacco |
|
|
7.5 |
|
|
Automotive |
|
|
1.0 |
|
|
Banking |
|
|
8.7 |
|
|
Commercial Services |
|
|
3.1 |
|
|
Consumer Products |
|
|
3.6 |
|
|
Construction & Engineering |
|
|
0.7 |
|
|
Electric |
|
|
4.2 |
|
|
Energy Integrated |
|
|
8.8 |
|
|
Energy Services |
|
|
1.4 |
|
|
Financial Services |
|
|
7.2 |
|
|
Food & Beverages |
|
|
0.5 |
|
|
Gas Utilities |
|
|
0.7 |
|
|
Insurance |
|
|
7.4 |
|
|
Leisure & Entertainment |
|
|
6.5 |
|
|
Manufacturing |
|
|
4.1 |
|
|
Medical Products |
|
|
0.5 |
|
|
Metals & Mining |
|
|
3.9 |
|
|
Pharmaceutical & Biotechnology |
|
|
2.5 |
|
|
Real Estate |
|
|
1.3 |
|
|
Retail |
|
|
2.5 |
|
|
Semiconductors & Components |
|
|
4.9 |
|
|
Technology Hardware |
|
|
1.0 |
|
|
Telecommunications |
|
|
12.1 |
|
|
Transportation |
|
|
3.5 |
|
|
|
|
|
|
||
Subtotal |
|
|
99.4 |
|
|
Foreign Government Obligations |
|
|
10.4 |
|
|
Short-Term Investment |
|
|
4.3 |
|
|
|
|
|
|
||
Total Investments |
|
|
114.1 |
% |
|
|
|
|
|
The accompanying notes are an integral part of these financial statements.
16
|
Lazard World Dividend & Income Fund, Inc. |
June 30, 2010 (unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
|
Investments in securities, at value (cost $95,877,208) |
|
$ |
89,891,239 |
|
Foreign currency, at value (cost $119,155) |
|
|
118,673 |
|
Receivables for: |
|
|
|
|
Investments sold |
|
|
906,660 |
|
Dividends and interest |
|
|
880,884 |
|
Gross unrealized appreciation on forward currency contracts |
|
|
1,333,895 |
|
|
|
|
||
Total assets |
|
|
93,131,351 |
|
|
|
|
||
|
|
|
|
|
LIABILITIES |
|
|
|
|
Payables for: |
|
|
|
|
Management fees |
|
|
82,595 |
|
Accrued directors fees |
|
|
670 |
|
Line of credit outstanding |
|
|
12,411,000 |
|
Gross unrealized depreciation on forward currency contracts |
|
|
1,748,417 |
|
Other accrued expenses and payables |
|
|
108,946 |
|
|
|
|
||
Total liabilities |
|
|
14,351,628 |
|
|
|
|
||
Net assets |
|
$ |
78,779,723 |
|
|
|
|
||
|
|
|
|
|
NET ASSETS |
|
|
|
|
Paid in capital (Note 2(i)) |
|
$ |
130,100,472 |
|
Distributions in excess of net investment income (Note 2(i)) |
|
|
(1,397,378 |
) |
Accumulated net realized loss |
|
|
(43,507,779 |
) |
Net unrealized depreciation on: |
|
|
|
|
Investments |
|
|
(5,985,969 |
) |
Foreign currency and forward currency contracts |
|
|
(429,623 |
) |
|
|
|
||
Net assets |
|
$ |
78,779,723 |
|
|
|
|
||
|
|
|
|
|
Shares of common stock outstanding* |
|
|
6,880,183 |
|
Net asset value per share |
|
$ |
11.45 |
|
Market value per share |
|
$ |
10.15 |
|
|
|
* $0.001 par value, 500,000,000 shares authorized for the Fund. |
The accompanying notes are an integral part of these financial statements.
17
|
Lazard World Dividend & Income Fund, Inc. |
For the Six Months Ended June 30, 2010 (unaudited) |
|
|
|
|
|
INVESTMENT INCOME |
|
|
|
|
|
||||
Income: |
|
|
|
|
Dividends (net of foreign withholding taxes of $223,678) |
|
$ |
2,834,466 |
|
Interest (net of foreign withholding taxes of $3,336) |
|
|
682,453 |
|
|
|
|
||
Total investment income |
|
|
3,516,919 |
|
|
|
|
||
|
||||
Expenses: |
|
|
|
|
Management fees (Note 3) |
|
|
530,825 |
|
Custodian fees |
|
|
72,370 |
|
Professional services |
|
|
64,262 |
|
Shareholders reports |
|
|
48,120 |
|
Administration fees |
|
|
29,759 |
|
Shareholders services |
|
|
20,669 |
|
Shareholders meeting |
|
|
8,053 |
|
Directors fees and expenses |
|
|
1,458 |
|
Other |
|
|
22,384 |
|
|
|
|
||
Total gross expenses before interest expense |
|
|
797,900 |
|
Interest expense |
|
|
137,503 |
|
|
|
|
||
Total expenses |
|
|
935,403 |
|
|
|
|
||
Net investment income |
|
|
2,581,516 |
|
|
|
|
||
|
|
|
|
|
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS, FOREIGN CURRENCY |
|
|
|
|
Net realized gain on: |
|
|
|
|
Investments (net of foreign capital gains taxes of $6,800) |
|
|
1,754,806 |
|
Foreign currency and forward currency contracts |
|
|
1,068,440 |
|
|
|
|
||
Total net realized gain on investments, foreign currency and forward currency contracts |
|
|
2,823,246 |
|
|
|
|
||
Net change in unrealized appreciation or depreciation on: |
|
|
|
|
Investments |
|
|
(12,571,607 |
) |
Foreign currency and forward currency contracts |
|
|
(888,958 |
) |
|
|
|
||
|
|
|
|
|
Total net change in unrealized appreciation
or depreciation on investments, foreign currency |
|
|
(13,460,565 |
) |
|
|
|
||
Net realized and unrealized
loss on investments, foreign currency |
|
|
(10,637,319 |
) |
|
|
|
||
Net decrease in net assets resulting from operations |
|
$ |
(8,055,803 |
) |
|
|
|
The accompanying notes are an integral part of these financial statements.
18
|
Lazard World Dividend & Income Fund, Inc. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended |
|
Year
Ended |
|
||||||
|
|
|
|
||||||||
INCREASE (DECREASE) IN NET ASSETS |
|
|
|
|
|
|
|
||||
|
|||||||||||
Operations: |
|
|
|
|
|
|
|
||||
Net investment income |
|
$ |
2,581,516 |
|
$ |
5,292,324 |
|
||||
Net realized gain (loss) on investments, options, foreign currency and forward currency contracts |
|
|
2,823,246 |
|
|
(21,929,392 |
) |
||||
Net change in unrealized appreciation (depreciation) on investments, options, foreign currency and forward currency contracts |
|
|
(13,460,565 |
) |
|
44,426,580 |
|
||||
|
|
|
|
||||||||
Net increase (decrease) in net assets resulting from operations |
|
|
(8,055,803 |
) |
|
27,789,512 |
|
||||
|
|
|
|
||||||||
|
|||||||||||
Distributions to Stockholders (Note 2(i)): |
|
|
|
|
|
|
|
||||
From net investment income |
|
|
(2,915,684 |
) |
|
(3,817,418 |
) |
||||
Return of capital |
|
|
|
|
|
(1,483,075 |
) |
||||
|
|
|
|
||||||||
Net decrease in net assets resulting from distributions |
|
|
(2,915,684 |
) |
|
(5,300,493 |
) |
||||
|
|
|
|
||||||||
Total increase (decrease) in net assets |
|
|
(10,971,487 |
) |
|
22,489,019 |
|
||||
Net assets at beginning of period |
|
|
89,751,210 |
|
|
67,262,191 |
|
||||
|
|
|
|
||||||||
Net assets at end of period* |
|
$ |
78,779,723 |
|
$ |
89,751,210 |
|
||||
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||
*Includes distributions in excess of net investment income of (Note 2(i)) |
|
$ |
(1,397,378 |
) |
$ |
(1,063,210 |
) |
||||
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||
Transactions in Capital Shares: |
|
|
|
|
|
|
|
||||
Common shares outstanding at beginning of period |
|
|
6,880,183 |
|
|
6,880,183 |
|
||||
|
|
|
|
||||||||
Common shares outstanding at end of period |
|
|
6,880,183 |
|
|
6,880,183 |
|
||||
|
|
|
|
The accompanying notes are an integral part of these financial statements.
19
|
Lazard World Dividend & Income Fund, Inc. |
For the Six Months Ended June 30, 2010 (unaudited) |
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND FOREIGN CURRENCY |
|
|
|
|
|
||||
Cash flows from operating activities: |
|
|
|
|
Net decrease in net assets from operations |
|
$ |
(8,055,803 |
) |
Adjustments to reconcile net decrease in
net assets from operations to net cash provided in operating activities |
|
|
(12,456 |
) |
Accretion of bond discount and amortization of bond premium |
|
|
(229,320 |
) |
Inflation index adjustment |
|
|
(50,451 |
) |
Decrease in other accrued expenses and payables |
|
|
(56,418 |
) |
Net realized gain on investments, foreign currency and forward currency contracts |
|
|
(2,823,246 |
) |
Net change in unrealized depreciation on investments, foreign currency and forward currency contracts |
|
|
13,460,565 |
|
Purchase of long-term investments |
|
|
(31,696,030 |
) |
Proceeds from disposition of long-term investments |
|
|
34,750,557 |
|
Sale of short-term investments, net |
|
|
(2,645,592 |
) |
|
|
|
||
Net cash provided in operating activities |
|
|
2,641,806 |
|
|
|
|
||
|
||||
Cash flows from financing activities: |
|
|
|
|
Cash distribution paid (Note 2(i)) |
|
|
(2,915,684 |
) |
Gross drawdowns in line of credit balance |
|
|
1,600,000 |
|
Gross paydowns in line of credit balance |
|
|
(2,500,000 |
) |
|
|
|
||
Net cash used in financing activities |
|
|
(3,815,684 |
) |
|
|
|
||
|
||||
Effect of exchange rate changes on cash |
|
|
1,059,118 |
|
|
|
|
||
Net decrease in cash and foreign currency |
|
|
(114,760 |
) |
|
||||
Cash and foreign currency: |
|
|
|
|
Beginning balance |
|
|
233,433 |
|
|
|
|
||
Ending balance |
|
$ |
118,673 |
|
|
|
|
||
|
|
|
|
|
Supplemental disclosure of cash flow information: |
|
|
|
|
Cash paid during the period for interest |
|
$ |
(153,393 |
) |
|
|
|
The accompanying notes are an integral part of these financial statements.
20
|
Lazard World Dividend & Income Fund, Inc. |
Selected data for a share of common stock outstanding throughout each period |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months |
|
Year Ended |
|
For
the Period |
|
||||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
12/31/09 |
|
12/31/08 |
|
12/31/07 |
|
12/31/06 |
|
|
||||||||||
|
|
|
|
|
|
|
|
||||||||||||||
Net asset value, beginning of period |
|
$ |
13.04 |
|
$ |
9.78 |
|
$ |
20.21 |
|
$ |
22.83 |
|
$ |
20.00 |
|
$ |
19.06 |
(a) |
||
|
|
|
|
|
|
|
|
||||||||||||||
Income (loss) from investment operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net investment income |
|
|
0.38 |
|
|
0.78 |
|
|
1.05 |
|
|
0.98 |
|
|
1.11 |
|
|
0.26 |
|
||
Net realized and unrealized gain (loss) |
|
|
(1.55 |
) |
|
3.25 |
|
|
(9.63 |
) |
|
0.78 |
|
|
4.98 |
|
|
1.40 |
|
||
|
|
|
|
|
|
|
|
||||||||||||||
Total from investment operations |
|
|
(1.17 |
) |
|
4.03 |
|
|
(8.58 |
) |
|
1.76 |
|
|
6.09 |
|
|
1.66 |
|
||
|
|
|
|
|
|
|
|
||||||||||||||
Less distributions from (Note 2(i)): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net investment income |
|
|
(0.42 |
) |
|
(0.55 |
) |
|
(1.41 |
) |
|
(1.72 |
) |
|
(1.49 |
) |
|
(0.72 |
) |
||
Net realized gains |
|
|
|
|
|
|
|
|
(0.44 |
) |
|
(2.66 |
) |
|
(1.77 |
) |
|
|
|
||
Return of capital |
|
|
|
|
|
(0.22 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
||||||||||||||
Total distributions |
|
|
(0.42 |
) |
|
(0.77 |
) |
|
(1.85 |
) |
|
(4.38 |
) |
|
(3.26 |
) |
|
(0.72 |
) |
||
|
|
|
|
|
|
|
|
||||||||||||||
Net asset value, end of period |
|
$ |
11.45 |
|
$ |
13.04 |
|
$ |
9.78 |
|
$ |
20.21 |
|
$ |
22.83 |
|
$ |
20.00 |
|
||
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Market value, end of period |
|
$ |
10.15 |
|
$ |
11.15 |
|
$ |
8.74 |
|
$ |
19.45 |
|
$ |
23.77 |
|
$ |
17.76 |
|
||
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total Return based upon: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net asset value (b) |
|
9.18% |
|
44.18% |
|
44.82% |
|
7.76% |
|
31.79% |
|
8.77% |
|
||||||||
Market value (b) |
|
5.40% |
|
39.81% |
|
48.02% |
|
0.22% |
|
55.29% |
|
7.64% |
|
||||||||
|
|||||||||||||||||||||
Ratios and Supplemental Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net assets, end of period (in thousands) |
|
$ |
78,780 |
|
$ |
89,751 |
|
$ |
67,262 |
|
$ |
139,024 |
|
$ |
157,065 |
|
$ |
134,886 |
|
||
Ratios to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Net expenses (c) |
|
|
2.15% |
|
|
2.13% |
|
|
2.30% |
|
|
1.99% |
|
|
1.90% |
|
|
2.00% |
|
||
Gross expenses (c) |
|
|
2.15% |
|
|
2.13% |
|
|
2.30% |
|
|
2.00% |
|
|
1.90% |
|
|
2.00% |
|
||
Gross expenses excluding interest expense (c) |
|
|
1.84% |
|
|
1.86% |
|
|
1.77% |
|
|
1.65% |
|
|
1.59% |
|
|
1.79% |
|
||
Net investment income (c) |
|
|
5.94% |
|
|
7.21% |
|
|
6.62% |
|
|
4.20% |
|
|
5.04% |
|
|
2.65% |
|
||
Portfolio turnover rate |
|
|
33% |
|
|
93% |
|
|
86% |
|
|
93% |
|
|
99% |
|
|
37% |
|
|
|
|
Unaudited. |
* |
Commencement of operations. |
(a) |
Net of initial sales load, underwriting and offering costs of $0.94 per share. |
(b) |
Total return based on per share market price assumes the purchase of common shares at the closing market price on the business day immediately preceding the first day, and sales of common shares at the closing market price on the last day, of each period indicated; dividends and distributions are assumed to be reinvested in accordance with the Funds Dividend Reinvestment Plan. The total return based on net asset value, or NAV, assumes the purchase of common shares at the net asset value, beginning of period and sales of common shares at the net asset value, end of period, for each of the periods indicated; distributions are assumed to be reinvested at NAV. Past performance is not indicative, or a guarantee, of future results; the investment return, market price and net asset value of the Fund will fluctuate, so that an investors 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 Funds distributions or on the sale of Fund shares. A period of less than one year is not annualized. |
(c) |
Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
21
|
Lazard World Dividend & Income Fund, Inc. |
June 30, 2010 (unaudited) |
1. Organization
Lazard World Dividend & Income Fund, Inc. (the Fund) was incorporated in Maryland on April 6, 2005 and is registered under the Investment Company Act of 1940, as amended (the Act), as a diversified, closed-end management investment company. The Fund trades on the NYSE under the ticker symbol LOR and commenced operations on June 28, 2005. The Funds investment objective is total return through a combination of dividends, income and capital appreciation.
2. Significant Accounting Policies
The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (GAAP). The following is a summary of significant accounting policies:
(a) Valuation of InvestmentsMarket values for securities are generally based on the last reported sales price on the principal exchange or market on which the security is traded, generally as of the close of regular trading on the NYSE (normally 4:00 p.m. Eastern time) on each valuation date. Any securities not listed, for which current over-the-counter market quotations or bids are readily available, are valued at the last quoted bid price or, if available, the mean of two such prices. Securities listed on foreign exchanges are valued at the last reported sales price except as described below; securities listed on foreign exchanges that are not traded on the valuation date are valued at the last quoted bid price. Forward currency contracts are valued at the current cost of offsetting the contracts. Options on stock and stock indices traded on national securities exchanges are valued as of the close of options trading on such exchanges (which is normally 4:10 p.m. Eastern time).
Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by pricing services which are based primarily on institutional trading in similar groups of securities, or by using brokers quotations.
If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when the Funds net asset value is calculated, or when current market quotations otherwise are determined not to be readily available or reliable, such securities will be valued at their fair values as determined by, or in accordance with procedures approved by, the Board of Directors (the Board). The Valuation Committee of the Investment Manager may evaluate a variety of factors to determine the fair value of securities for which current market quotations are
determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Managers analysts will also be considered.
(b) Portfolio Securities Transactions and Investment IncomePortfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income is recorded on the ex-dividend date and interest income is accrued daily. The Fund amortizes premiums and accretes discounts on fixed-income securities using the effective yield method.
The Fund may be subject to taxes imposed by foreign countries in which it invests. Such taxes are generally based upon income earned or capital gains, realized or unrealized. The Fund accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income or capital gains (realized and unrealized) from the applicable portfolio securities.
(c) Repurchase AgreementsIn connection with transactions in repurchase agreements, the Funds custodian takes possession of the underlying collateral securities, the fair value of which, at all times, is required to be at least equal to the principal amount, plus accrued interest, of the repurchase transaction. If the seller defaults, and the fair value of the collateral declines, realization of the collateral by the Fund may be delayed or limited.
(d) LeveragingThe Fund uses leverage to invest Fund assets in currency investments, primarily using forward currency contracts and by borrowing under a credit facility with State Street Bank and Trust Company (State Street), up to a maximum of 33⅓% of the Funds total leveraged assets. If the assets of the Fund decline due to market conditions such that this 33⅓% threshold will be exceeded, leverage risk will increase.
If the Fund is able to realize a higher return on the leveraged portion of its investment portfolio than the cost of such leverage together with other related expenses, the effect of the leverage will be to cause the Fund to realize a higher net return than if the Fund were not so leveraged. There is no assurance that any leveraging strategy the Fund employs will be successful.
Using leverage is a speculative investment technique and involves certain risks. These include higher volatility of net asset value, the likelihood of more volatility in the market value of the Funds common stocks and, with respect to borrowings, the possibility either that the Funds return will fall if the interest rate on any borrowings rises, or that
22
|
Lazard World Dividend & Income Fund, Inc. |
Notes to Financial Statements (continued) |
June 30, 2010 (unaudited) |
income will fluctuate because the interest rate of borrowings varies.
If the market value of the Funds leveraged currency investments declines, the leverage will result in a greater decrease in net asset value, or less of an increase in net asset value, than if the Fund were not leveraged. Such results also will tend to have a similar effect on the market price of the Funds common stocks. To the extent that the Fund is required or elects to prepay any borrowings, the Fund may need to liquidate investments to fund such prepayments. Liquidation at times of adverse economic conditions may result in capital losses and may reduce returns.
(e) Foreign Currency Translation and Forward Currency ContractsThe accounting records of the Fund are maintained in U.S. dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into U.S. dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rates on the respective transaction dates.
The Fund does not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments. Net realized gain (loss) on foreign currency and forward currency contracts represents net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Funds accounting records and the U.S. dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.
A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of the foreign currency relative to the U.S. dollar.
The U.S. dollar value of forward currency contracts is determined using forward exchange rates provided by
quotation services. Daily fluctuations in the value of such contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, the Fund records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed.
(f) Structured InvestmentsThe Fund may invest in structured investments, whose values are linked either directly or inversely to changes in foreign currencies, interest rates, commodities, indices, or other underlying instruments. The Fund may use these investments to increase or decrease its exposure to different underlying instruments, to gain exposure to markets that might be difficult to invest in through conventional securities or for other purposes. Structured investments may be more volatile than their underlying instruments, but any loss is limited to the amount of the original investment.
(g) Options TransactionsFor hedging and investment purposes, the Fund may purchase and write (sell) put and call options that are traded on U.S. and foreign securities exchanges and over-the-counter markets.
The risk associated with purchasing an option is that the Fund pays a premium whether or not the option is exercised. Additionally, the Fund bears the risk of loss of any change in market value should the counterparty not perform under the contract. The risk involved in writing an option is that, if the option is exercised, the underlying security or other assets could then be purchased or sold by the Fund at a disadvantageous price. Put and call options purchased are accounted for in the same manner as portfolio securities and other assets. When the Fund writes an option, the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the option written.
The Fund did not trade in options during the period ended June 30, 2010.
(h) Federal Income Tax PolicyIt is the Funds policy to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its stockholders. Therefore, no provision for federal income taxes is required. The Fund files tax returns with the U.S. Internal Revenue Service and various states.
At December 31, 2009, the Fund had $15,249,090 and $29,179,195 of unused realized capital loss carryforwards, expiring in 2016 and 2017, respectively.
Under current tax law, certain capital and net foreign currency losses realized after October 31 within the taxable
23
|
Lazard World Dividend & Income Fund, Inc. |
Notes to Financial Statements (continued) |
June 30, 2010 (unaudited) |
year may be deferred and treated as occurring on the first day of the following tax year. For the tax year ended December 31, 2009, the Fund elected to defer net capital and foreign currency losses of $684,231 arising between November 1, 2009 and December 31, 2009.
Management has analyzed the Funds tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2006-2008), or expected to be taken in the Funds 2009 or 2010 tax returns.
(i) Dividends and DistributionsThe Fund intends to declare and to pay dividends monthly from net investment income. Distributions to stockholders are recorded on the ex-dividend date. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Fund, if not distributed. The Fund intends to declare and distribute these amounts, at least annually, to stockholders; however, to avoid taxation, a second distribution may be required.
Income dividends and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency transactions, wash sales and distributions from real estate investment trusts and partnerships. The book/tax differences relating to stockholder distributions may result in reclassifications among certain capital accounts.
The Fund has implemented a Level Distribution Policy to seek to maintain a stable monthly distribution, subject to oversight of the Funds Board. Under the Funds Level Distribution Policy, the Fund intends to make regular monthly distributions at a fixed rate per share. If for any monthly distribution, net investment income and net realized short-term capital gain were less than the amount of the distribution, the difference would generally be distributed from the Funds assets. In addition, in order to make such distributions, the Fund might have to sell a portion of its investment portfolio at a time when independent investment judgment might not dictate such actions.
In July 2010, the Investment Manager, on behalf of itself and the Fund, received an exemptive order from the Securities and Exchange Commission (the SEC) facilitating the implementation of a distribution policy that may include multiple long-term capital gains distributions (Managed Distribution Policy). As a result, the Fund may, subject to the determination of its Board, implement a Managed Distribution Policy.
Concurrent with the monthly distributions paid from February 2010 through June 2010, the Fund issued notices pursuant to Section 19(a) of the Act (the Section 19(a) Notices) stating that the Fund currently estimates that it has distributed more than its net investment income and realized capital gains. Based on these estimates, it is possible that some or all of the amounts distributed may represent a return of capital. The Section 19(a) Notices may also be viewed at www.LazardNet.com.
The amounts and sources of distributions shown on the Section 19(a) Notices are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the cumulative distributions for tax reporting purposes will depend upon the Funds investment experience during the year and may be subject to changes based on tax regulations. The Fund will send stockholders a Form 1099-DIV for the calendar year explaining how to report these distributions for federal income tax purposes.
(j) EstimatesThe preparation of financial statements in conformity with GAAP requires the Fund to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.
(k) Subsequent EventsManagement has performed its evaluation of subsequent events through August 30, 2010, the date these financial statements were issued, and has determined that there were no subsequent events requiring adjustment or disclosure in the financial statements.
3. Investment Management Agreement
The Fund has entered into an investment management agreement (the Management Agreement) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager regularly provides the Fund with investment research, advice and supervision and furnishes continuously an investment program for the Fund consistent with its investment objective and policies, including the purchase, retention and disposition of securities.
The Fund has agreed to pay the Investment Manager an annual investment management fee of 0.90% of the Funds average daily Total Leveraged Assets (the Funds total assets including Financial Leverage (defined below)) for the services and facilities provided by the Investment Manager, payable on a monthly basis. The fee paid to the Investment Manager will be higher when the Investment Manager uses Currency Commitments and Borrowings (Financial Lever-
24
|
Lazard World Dividend & Income Fund, Inc. |
Notes to Financial Statements (continued) |
June 30, 2010 (unaudited) |
age) to make Currency Investments, rather than by reducing the percentage of Net Assets (the Funds assets without taking into account Financial Leverage) invested in World Equity Investments for the purposes of making Currency Investments. World Equity Investments refers to investments in the Funds world equity strategy, consisting of equity securities of companies with market capitalizations of $3 billion or greater at the time of the Funds initial purchase. Currency Investments refers to investments in the Funds emerging income strategy, consisting of emerging market currencies (primarily by entering into forward currency contracts), or instruments whose value is derived from the performance of an underlying emerging market currency, but also may invest in debt obligations, including government, government agency and corporate obligations and structured notes denominated in emerging market currencies. Currency Commitments are the aggregate financial exposures created by forward currency contracts in excess of that represented in the Funds Net Assets, and Borrowings refers to the borrowings under the Funds credit facility. Assuming Financial Leverage in the amount of 33⅓% of the Funds Total Leveraged Assets, the annual fee payable to the Investment Manager would be 1.35% of Net Assets (i.e., not including amounts attributable to Financial Leverage).
The following is an example of this calculation of the Investment Managers fee, using very simple illustrations. If the Fund had assets of $1,000, it could invest $1,000 in World Equity Investments and enter into $500 in forward currency contracts (because the Fund would not have to pay money at the time it enters into the currency contracts). Similarly, the Fund could invest $1,000 in World Equity Investments, borrow $500 and invest the $500 in foreign currency denominated bonds. In either case, the Investment Managers fee would be calculated based on $1,500 of assets, because the fee is calculated based on Total Leveraged Assets (Net Assets plus Financial Leverage). In our example, the Financial Leverage is in the form of either the forward currency contracts (Currency Commitments) or investments from Borrowings. The amount of the Financial Leverage outstanding, and therefore the amount of Total Leveraged Assets on which the Investment Managers fee is based, fluctuates daily based on changes in value of the Funds portfolio holdings, including changes in value of the currency involved in the forward currency contracts and foreign currency denominated bonds acquired with the proceeds of Borrowings. However, the Investment Managers fee will be the same regardless of whether Currency Investments are made with Currency Commitments or with Borrowings (without taking into account the cost of Borrowings).
This method of calculating the Investment Managers fee is different than the way closed-end investment companies typically calculate management fees. Traditionally, closed-end investment companies calculate management fees based on Net Assets plus Borrowings (excluding Financial Leverage obtained through Currency Commitments). The Investment Managers fee is different because the Funds leverage strategy is different than the leverage strategy employed by many other closed-end investment companies. Although the Fund may employ Borrowings in making Currency Investments, the Funds leverage strategy relies primarily on Currency Commitments, rather than relying exclusively on borrowing money and/or issuing preferred stock, as is the strategy employed by most closed-end investment companies. The Investment Managers fee would be lower if its fee were calculated only on Net Assets plus Borrowings, because the Investment Manager would not earn fees on Currency Investments made with Currency Commitments (forward currency contracts). Using the example above, where the Fund has assets of $1,000 and invests $1,000 in World Equity Investments and $500 in forward currency contracts, the following table illustrates how the Investment Managers fee would be different if it did not earn management fees on these types of Currency Investments. A discussion of the most recent review and approval by the Funds Board of the Management Agreement (including the method of calculating the Investment Managers fee) is included under Other InformationBoard Consideration of Management Agreement in the Funds annual report for the year ended December 31, 2009.
|
|
|
|
|
|
|
|
|
|
|
|
Beginning assets of $1,000 |
|
Funds
management |
|
Typical |
|
||||||
World
Equity Investments |
|
|
$ |
1,000 |
|
|
|
$ |
1,000 |
|
|
Currency Commitments |
|
|
$ |
500 |
|
|
|
$ |
500 |
|
|
Assets used
to calculate |
|
|
$ |
1,500 |
|
|
|
$ |
1,000 |
|
|
Management fee (0.90%) |
|
|
$ |
13.50 |
|
|
|
$ |
9.00 |
|
|
Investment Manager Fee Conflict RiskThe fee paid to the Investment Manager for investment management services will be higher when the Fund uses Financial Leverage, whether through forward currency contracts or Borrowings, because the fee paid will be calculated on the basis of the Funds assets including this Financial Leverage. Consequently, the Investment Manager may have a financial interest for the Fund to utilize such Financial Leverage,
25
|
Lazard World Dividend & Income Fund, Inc. |
Notes to Financial Statements (continued) |
June 30, 2010 (unaudited) |
which may create a conflict of interest between the Investment Manager and the stockholders of the Fund.
The Fund has implemented procedures to monitor this potential conflict.
4. Administration Agreement
The Fund has entered into an administration agreement with State Street to provide certain administrative services. The Fund bears the cost of such services at a fixed annual rate of $42,500, plus 0.02% of average daily net assets up to $1 billion and 0.01% of average daily net assets over $1 billion.
5. Directors Compensation
Certain Directors of the Fund are officers of the Investment Manager. The Fund pays each Director who is not an affiliated person of the Investment Manager or any of its affiliates an annual aggregate fee of $60,000 ($80,000 effective July 1, 2010), plus $4,000 ($5,000 effective July 1, 2010) per meeting attended in person ($1,500 per meeting, including special Board or committee meetings, attended by telephone) for the Fund, The Lazard Funds, Inc., Lazard Retirement Series, Inc. and Lazard Global Total Return and Income Fund, Inc. (collectively, with the Fund, the Lazard Funds), each a registered management investment company advised by the Investment Manager, and reimburses them for travel and other out-of-pocket expenses for attending Board and committee meetings. These Directors also are paid $1,000 ($5,000 effective July 1, 2010) for in-person attendance at special meetings not held in conjunction with a regular Board meeting, as specifically authorized by the Board and held in connection with delegated Fund business. The Chairman of the Audit Committees of the Boards of the Lazard Funds also receives an additional annual fee of $5,000.
6. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments) for the period ended June 30, 2010 were $31,746,545 and $35,693,284, respectively.
For the period ended June 30, 2010, no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.
7. Line of Credit
The Fund has a $20 million Line of Credit Agreement (the Agreement) with State Street primarily to borrow to invest Fund assets in Currency Investments. The Fund may borrow the lesser of $20 million or 33⅓% of its Total
Leveraged Assets. Interest on borrowings is payable at the higher of the Federal Funds rate or Overnight LIBOR rate plus 1.75% from January 1, 2010 to June 24, 2010 and plus 1.25% from June 25, 2010 to June 30, 2010, on an annualized basis. Under the Agreement, the Fund has also agreed to pay a 0.15% per annum fee on the unused portion of the commitment, payable quarterly in arrears, and a closing fee of 0.05% on the commitment, paid at closing. During the period ended June 30, 2010, the Fund had borrowings under the Agreement as follows:
|
|
|
|
|
|
|
|
Average
Daily |
|
Maximum
Daily |
|
Weighted
Average |
|
||
|
|
|
|||||
|
|||||||
$ 14,335,309 |
|
|
$ 14,911,000 |
|
|
1.96% |
|
*For 181 days borrowings were outstanding.
8. Foreign Securities Investment Risks
The Fund invests in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in domestic securities. Foreign investments carry special risks, such as exposure to currency fluctuations, less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity. The Funds investments in emerging market countries are exposed to additional volatility. The Funds performance will be influenced by political, social and economic factors affecting companies in emerging market countries. Emerging market countries generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries.
9. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The Funds maximum exposure under these arrangements is unknown. Management has reviewed the Funds existing contracts and expects the risk of loss to be remote.
10. Fair Value Measurements
Fair value is defined as the price that the Fund would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would
26
Lazard World Dividend & Income Fund, Inc. |
Notes to Financial Statements (continued) |
June 30, 2010 (unaudited) |
|
use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Funds own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. Each investments fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below.
|
|
· |
Level 1unadjusted quoted prices in active markets for identical investments |
|
|
· |
Level 2other significant observable inputs (including unadjusted quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
|
|
· |
Level 3significant unobservable inputs (including the Funds own assumptions in determining the fair value of investments) |
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.
The following table summarizes the valuation of the Funds investments by each fair value hierarchy level as of June 30, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
|
Unadjusted |
|
Significant |
|
Significant |
|
Balance
as of |
|
||||||||||
|
|
|
|
|
|
|||||||||||||||
|
||||||||||||||||||||
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Common Stocks* |
|
|
$ |
75,728,408 |
|
|
$ |
|
|
$ |
|
|
$ |
75,728,408 |
|
|||||
Limited Partnership Units* |
|
|
|
1,095,552 |
|
|
|
|
|
|
|
|
|
1,095,552 |
|
|||||
Preferred Stocks* |
|
|
|
1,481,748 |
|
|
|
|
|
|
|
|
|
1,481,748 |
|
|||||
Foreign Government Obligations |
|
|
|
|
|
|
|
7,717,663 |
|
|
500,879 |
|
|
8,218,542 |
|
|||||
Short-Term Investment |
|
|
|
|
|
|
|
3,366,989 |
|
|
|
|
|
3,366,989 |
|
|||||
Other Financial Instruments** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Forward Currency Contracts |
|
|
|
|
|
|
|
1,333,895 |
|
|
|
|
|
1,333,895 |
|
|||||
|
|
|
|
|
|
|
|
|||||||||||||
Total |
|
|
$ |
78,305,708 |
|
|
$ |
12,418,547 |
|
$ |
500,879 |
|
$ |
91,225,134 |
|
|||||
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Other Financial Instruments** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Forward Currency Contracts |
|
|
$ |
|
|
|
$ |
(1,748,417 |
) |
$ |
|
|
$ |
(1,748,417 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
* |
Please refer to the Notes to Portfolio of Investments, on page 16, for portfolio holdings by industry. |
** |
Other financial instruments are derivative instruments which are valued at the unrealized appreciation/depreciation on the instruments. |
Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value during the period ended June 30, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
|
Balance as of |
|
Accrued |
|
Realized |
|
Change in |
|
Purchases |
|
Sales |
|
Net |
|
Net |
|
Balance |
|
Net Change in |
|
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Foreign Government Obligations |
|
|
$ |
873,026 |
|
|
|
$ |
13,063 |
|
|
$ |
(161,002 |
) |
|
$ |
169,871 |
|
|
$ |
|
|
$ |
(394,079 |
) |
$ |
|
|
$ |
|
|
$ |
500,879 |
|
|
$ |
14,179 |
|
|
|
Supranationals |
|
|
|
348,339 |
|
|
|
|
792 |
|
|
|
(94,660 |
) |
|
|
93,152 |
|
|
|
|
|
|
(347,623 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
Total |
|
|
$ |
1,221,365 |
|
|
|
$ |
13,855 |
|
|
$ |
(255,662 |
) |
|
$ |
263,023 |
|
|
$ |
|
|
$ |
(741,702 |
) |
$ |
|
|
$ |
|
|
$ |
500,879 |
|
|
$ |
14,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
27
|
Lazard World Dividend & Income Fund, Inc. |
Notes to Financial Statements (concluded) |
June 30, 2010 (unaudited) |
Effective March 31, 2010, the Fund adopted Financial Accounting Standards Board Accounting Standards Update (ASU) 2010-06, Fair Value Measurements and Disclosures (Topic 820). The ASU amends GAAP to add new requirements for disclosures about transfers into and out of Levels 1 and 2 of the fair value hierarchy. It also clarifies existing fair value disclosure about the level of disaggregation and about inputs and valuation techniques used to measure fair value for investments that fall in either Levels 2 or 3 fair value hierarchy. There were no significant transfers into and out of Levels 1, 2, and 3 during the period ended June 30, 2010.
11. Derivative Instruments
The Fund may use derivative instruments, including forward currency contracts, to gain exposure to the local currency and interest rates of emerging markets or to hedge certain types of currency exposures.
For the period ended June 30, 2010, the cost of purchases and the proceeds from sales of forward currency contracts were $245,338,152 and $243,023,439, respectively.
The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of June 30, 2010:
|
|
|
|
|
|
|
Fair Value |
|
|
|
|
|
||
Asset Derivatives |
|
|
|
|
Foreign Exchange Risk: |
|
|
|
|
Gross
unrealized appreciation on |
|
$ |
1,333,895 |
|
|
|
|
||
|
|
|
|
|
Liability Derivatives |
|
|
|
|
Foreign Exchange Risk: |
|
|
|
|
Gross
unrealized depreciation on |
|
$ |
1,748,417 |
|
|
|
|
The effect of derivative instruments on the Statement of Operations for the six months ended June 30, 2010 was:
|
|
|
|
|
|
|
Amount |
|
|
|
|
|
||
Realized Gain (Loss) on Derivatives Recognized |
|
|
|
|
Foreign Exchange Risk: |
|
|
|
|
Net realized loss on forward currency contracts |
|
$ |
(12,059 |
) |
|
|
|
||
|
|
|
|
|
Net Change in Unrealized Appreciation (Depreciation) |
|
|
|
|
Foreign Exchange Risk: |
|
|
|
|
Net change
in unrealized appreciation on |
|
$ |
(837,345 |
) |
|
|
|
28
|
Lazard World Dividend & Income Fund, Inc. |
(unaudited) |
The Annual Meeting of Stockholders was held on April 29, 2010, to vote on the following proposal. The proposal received the required number of votes of stockholders and was adopted.
Election of the following Directors:
|
|
|
Three Class I Directors (Charles L. Carroll, Leon M. Pollack, and Robert M. Solmson), each to serve for a three-year term expiring at the 2013 Annual Meeting and/or until his successor is duly elected and qualified. |
|
|
|
|
|
|
|
|
|
Director |
|
|
For |
|
Withhold Authority |
|
|
|
|
|
|
|||
|
Charles L. Carroll |
|
5,801,651 |
|
453,314 |
|
|
|
Leon M. Pollack |
|
5,806,895 |
|
448,070 |
|
|
|
Robert M. Solmson |
|
5,805,372 |
|
449,592 |
|
29
Lazard World Dividend & Income Fund, Inc. |
(unaudited) |
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 Computershare, Inc., as dividend disbursing agent (the Plan Agent), in additional common stock under the Funds Dividend Reinvestment Plan (the Plan). You may elect not to participate in the Plan by contacting 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 stocks 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, 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.
30
|
Lazard World Dividend & Income Fund, Inc. |
(unaudited) |
|
|
|
|
|
Name (Age) |
|
Position(s) with the Fund |
|
Principal Occupation(s) During Past 5
Years |
|
|
|
|
|
Board of Directors: |
|
|
|
|
|
|
|
|
|
Class I Directors with Term Expiring in 2013 |
||||
|
|
|
|
|
Independent Directors: |
|
|
|
|
|
|
|
|
|
Leon M. Pollack (69) |
|
Director |
|
Former Managing Director, Donaldson, Lufkin & Jenrette; Trustee, Adelphi University |
|
|
|
|
|
Robert M. Solmson (62) |
|
Director |
|
President, Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments; Director, Colonial Williamsburg Co.; Former Chief Executive Officer and Chairman, RFS Hotel Investors, Inc.; Former Director, Morgan Keegan & Co., Inc.; Former Director, Independent Bank, Memphis |
|
|
|
|
|
Interested Director(3): |
|
|
|
|
|
|
|
|
|
Charles L. Carroll (49) |
|
Chief Executive Officer, |
|
Deputy Chairman and Head of Global Marketing of the Investment Manager |
|
|
|
|
|
Class II Directors with Term Expiring in 2011 |
||||
|
|
|
|
|
Independent Directors: |
|
|
|
|
|
|
|
|
|
Kenneth S. Davidson (65) |
|
Director |
|
President, Davidson Capital Management Corporation; Partner, Aquiline Holdings LLC; Trustee, The Juilliard School; Chairman of the Board, Bridge- hampton Chamber Music Festival; Trustee, American Friends of the National Gallery, London |
|
|
|
|
|
Nancy A. Eckl (47) |
|
Director |
|
Former Vice President, Trust Investments, American Beacon Advisors, Inc. (American Beacon) and Vice President of certain funds advised by American Beacon; Trustee, College Retirement Equities Fund (eight accounts); Trustee, TIAA-CREF Funds (47 funds) and TIAA-CREF Life Funds (10 funds), and Member of the Management Committee of TIAA Separate Account VA-I |
|
|
|
|
|
Lester Z. Lieberman (80) |
|
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 2012 |
||||
|
|
|
|
|
Independent Director: |
|
|
|
|
|
|
|
|
|
Richard Reiss, Jr. (66) |
|
Director |
|
Chairman, Georgica Advisors LLC, an investment manager; Director, OCharleys, Inc., a restaurant chain |
|
|
|
|
|
Interested Director(3): |
|
|
|
|
|
|
|
|
|
Ashish Bhutani (50) |
|
Director |
|
Chief Executive Officer of the Investment Manager; Vice Chairman of Lazard Ltd (since January 2010) |
|
|
(1) |
The address of each Director is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
(2) |
Each Director also serves as a Director for each of the Lazard Funds (comprised of 20 investment portfolios). All of the Independent Directors, except Mr. Lieberman, are also board members of Lazard Alternative Strategies Fund, L.L.C., a privately-offered fund registered under the Act and advised by an affiliate of the Investment Manager. |
(3) |
Messrs. Bhutani and Carroll are interested persons (as defined in the Act) of the Fund because of their positions with the Investment Manager. |
31
|
Lazard World Dividend & Income Fund, Inc. |
Board of Directors and Officers Information (concluded) |
(unaudited) |
|
|
|
|
|
Name (Age) |
|
Position(s) with the Fund |
|
Principal Occupation(s) During Past 5 Years |
|
|
|
|
|
Officers(3): |
|
|
|
|
|
|
|
|
|
Nathan A. Paul (37) |
|
Vice President |
|
Managing Director and General Counsel of the Investment Manager |
|
|
|
|
|
Stephen St. Clair (51) |
|
Treasurer |
|
Vice President of the Investment Manager |
|
|
|
|
|
Brian D. Simon (48) |
|
Chief Compliance Officer |
|
Director (since January 2006) and Chief Compliance Officer (since January 2009); and previously Senior Vice President (2002 to 2005) of the Investment Manager |
|
|
|
|
|
Tamar Goldstein (35) |
|
Assistant Secretary |
|
Vice President (since March 2009) and previously Counsel (October 2006 to February 2009) of the Investment Manager; Associate at Schulte Roth & Zabel LLP, a law firm, from May 2004 to October 2006 |
|
|
|
|
|
Cesar A. Trelles (35) |
|
Assistant Treasurer |
|
Fund Administration Manager of the Investment Manager |
|
|
(1) |
The address of each officer is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
(2) |
Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other Lazard Funds. |
(3) |
In addition to Charles L. Carroll, President, whose information is included in the Class I Interested Director section. |
32
|
Lazard World Dividend & Income Fund, Inc. |
(unaudited) |
Proxy Voting
A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SECs website at http://www.sec.gov.
The Funds proxy voting record for the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SECs web-site at http://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.
Form N-Q
The Fund files a complete schedule of its portfolio holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Funds Forms N-Q are available on the SECs website at http://www.sec.gov and may be reviewed and copied at the SECs Public Reference Room in Washington, D.C. Information on the operation of the SECs Public Reference Room may be obtained by calling 1-800-SEC-0330.
33
|
Lazard World Dividend & Income Fund, Inc. |
30 Rockefeller Plaza |
New York, New York 10112-6300 |
Telephone: 800-823-6300 |
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, 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 |
This report is intended only for the information of stockholders of common stock of Lazard World Dividend & Income Fund, Inc.
LAZARD
Lazard Asset Management LLC 30 Rockefeller Plaza www.LazardNet.com
New York, NY 10112-6300
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrants Board of Directors during the period covered by this report.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Registrants principal executive and principal financial officers have concluded, based on their evaluation of the Registrants disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrants disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrants management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrants internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrants internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certifications of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.
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.
|
|
|
Lazard World Dividend & Income Fund, Inc. |
||
|
||
By |
/s/ Charles L. Carroll |
|
|
|
|
|
Charles L. Carroll |
|
|
Chief Executive Officer |
|
|
|
|
Date |
September 1, 2010 |
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/ Charles L. Carroll |
|
|
|
|
|
Charles L. Carroll |
|
|
Chief Executive Officer |
|
|
|
|
Date |
September 1, 2010 |
|
|
|
|
By |
/s/ Stephen St. Clair |
|
|
|
|
|
Stephen St. Clair |
|
|
Chief Financial Officer |
|
|
|
|
Date |
September 1, 2010 |
|