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

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS 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)

 

Registrant’s telephone number, including area code:     (212) 632-6000

 

Date of fiscal year end:      12/31

 

Date of reporting period:     9/30/2013

 
Item 1. Schedule of Investments.

 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments

September 30, 2013 (unaudited)

 

Description  Shares   Value 
Common Stocks — 99.0%          
           
Australia — 1.8%          
DUET Group   456,124   $927,629 
Transurban Group   153,743    975,303 
         1,902,932 
           
Belgium — 1.1%          
           
bpost SA   57,880    1,107,204 
           
Brazil — 4.9%          
           
Banco do Brasil SA   175,717    2,049,490 
BB Seguridade Participacoes SA   158,400    1,558,771 
Cia Hering   46,400    704,280 
Direcional Engenharia SA   125,300    680,124 
         4,992,665 
           
Cambodia — 0.3%          
           
NagaCorp, Ltd.   308,000    260,112 
           
China — 4.5%          
           
Agricultural Bank of China, Ltd., Class H   4,640,000    2,135,767 
China Construction Bank Corp., Class H   2,282,180    1,759,620 
Industrial and Commercial Bank of China,
Ltd., Class H		   1,036,440    722,952 
         4,618,339 
           
Finland — 1.1%          
           
Sampo Oyj, A Shares   26,654    1,145,230 
           
France — 5.4%          
           
AXA SA   73,034    1,692,020 
Rexel SA   42,161    1,072,305 
Total SA   27,541    1,598,219 
Valeo SA   13,906    1,187,460 
         5,550,004 
           
Germany — 4.2%          
           
Allianz SE   7,412    1,165,175 
Bayerische Motoren Werke AG   11,382    1,223,691 
RTL Group SA   19,260    1,954,453 
         4,343,319 
           
Guernsey — 1.2%          
           
Resolution, Ltd.   239,710    1,233,276 
           
Indonesia — 0.3%          
           
PT Bank Pembangunan Daerah Jawa Barat
dan Banten Tbk		   4,280,500    332,681 
           
Israel — 1.1%          
           
Bezeq The Israeli Telecommunication Corp.,
Ltd.		   630,330    1,159,047 
           
Italy — 6.2%          
           
Atlantia SpA   166,746    3,390,504 

 

Description  Shares   Value 
Eni SpA   129,868   $2,977,979 
         6,368,483 
           
Japan — 1.7%          
           
Mizuho Financial Group, Inc.   797,300    1,727,706 
           
Macau — 3.9%          
           
Sands China, Ltd.   272,000    1,683,364 
Wynn Macau, Ltd.   678,000    2,312,188 
         3,995,552 
           
Mexico — 0.4%          
           
Fibra Uno Administracion SA de CV REIT   154,100    427,235 
           
Norway — 1.5%          
           
Orkla ASA   83,828    610,596 
Seadrill, Ltd.   21,700    978,236 
         1,588,832 
           
Russia — 5.1%          
           
Globaltrans Investment PLC Sponsored GDR   95,851    1,389,840 
Mobile TeleSystems OJSC Sponsored ADR   120,680    2,686,337 
Sberbank of Russia GDR (a), (b)   96,808    1,166,536 
         5,242,713 
           
South Africa — 4.7%          
           
AVI, Ltd.   69,309    413,152 
Kumba Iron Ore, Ltd.   13,647    630,682 
Life Healthcare Group Holdings Pte, Ltd.   333,986    1,188,881 
MTN Group, Ltd.   33,660    657,091 
Vodacom Group, Ltd.   158,533    1,965,034 
         4,854,840 
           
Spain — 2.3%          
           
Red Electrica Corporacion SA   41,943    2,387,161 
           
Sweden — 2.1%          
           
Electrolux AB, Series B   53,390    1,386,527 
Swedbank AB, A Shares   34,245    797,684 
         2,184,211 
           
Switzerland — 2.5%          
           
Swiss Re AG   16,658    1,377,806 
Transocean, Ltd.   10,600    471,700 
Zurich Insurance Group AG   2,691    693,021 
         2,542,527 
           
Taiwan — 2.4%          
           
Radiant Opto-Electronics Corp.   331,660    1,183,418 
Siliconware Precision Industries Co.   1,108,000    1,294,734 
         2,478,152 
           
Thailand — 2.0%          
           
Dynasty Ceramic Public Co. Ltd. (b)   412,700    735,551 
Krung Thai Bank Public Co. Ltd. (b)   1,408,400    864,491 
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

September 30, 2013 (unaudited)

 

Description  Shares   Value 
Tisco Financial Group Public Co. Ltd. (b)   383,400   $462,703 
         2,062,745 
           
Turkey — 1.8%          
           
Tofas Turk Otomobil Fabrikasi AS   164,674    1,002,693 
Tupras-Turkiye Petrol Rafinerileri AS   41,169    870,234 
         1,872,927 
           
United Kingdom — 9.7%          
           
Direct Line Insurance Group PLC   552,225    1,906,003 
Ladbrokes PLC   263,583    722,001 
Rexam PLC   84,204    656,507 
Royal Dutch Shell PLC, A Shares   89,248    2,943,622 
Vodafone Group PLC   1,070,789    3,744,363 
         9,972,496 
           
United States — 26.8%          
           
Apple, Inc.   3,565    1,699,614 
Aviv REIT, Inc.   23,432    534,250 
Blackstone Mortgage Trust, Inc., Class A   63,800    1,607,122 
CenturyLink, Inc.   108,695    3,410,849 
Cisco Systems, Inc.   50,500    1,182,710 
ConocoPhillips   16,560    1,151,085 
EPR Properties REIT   10,330    503,484 
Harsco Corp.   20,730    516,177 
Hasbro, Inc.   27,079    1,276,504 
Intel Corp.   97,330    2,230,803 
Lexington Realty Trust REIT   70,355    790,087 
Medical Properties Trust, Inc. REIT   44,300    539,131 
Microsoft Corp.   28,400    946,004 
National CineMedia, Inc.   36,600    690,276 
NRG Yield, Inc., Class A   18,445    558,699 
Pattern Energy Group, Inc.   45,900    1,074,060 
People’s United Financial, Inc.   71,515    1,028,386 
Pfizer, Inc.   61,800    1,774,278 
Qualcomm, Inc.   7,800    525,408 
Republic Services, Inc.   21,500    717,240 
Southern Copper Corp.   55,180    1,503,103 
STAG Industrial, Inc. REIT   45,600    917,472 
Sysco Corp.   24,620    783,655 
The Blackstone Group LP   30,500    759,145 
Wynn Resorts, Ltd.   5,400    853,254 
         27,572,796 
           
Total Common Stocks
(Identified cost $94,388,482)		        101,923,185 
           
Preferred Stocks — 1.9%          
           
United States — 1.9%          
           
Capital One Financial Corp., Series B   54,666    1,196,639 

 

Description  Shares   Value 
City National Corp., Series C   389   $7,761 
JPMorgan Chase & Co., Series P   23,893    508,921 
Regions Financial Corp., Series A   13,399    302,281 
           
Total Preferred Stocks
(Identified cost $2,151,445)		        2,015,602 

 

Description  Principal
Amount
(000) (c)		   Value 
Foreign Government Obligations — 9.5%          
           
Brazil — 2.6%          
           
Brazil NTN-B:          
6.00%, 05/15/15   915   $1,005,804 
6.00%, 08/15/16   273    294,312 
6.00%, 08/15/18   460    497,453 
Brazil NTN-F,          
10.00%, 01/01/23   2,044    861,885 
         2,659,454 
           
Colombia — 0.1%          
           
Republic of Colombia,
12.00%, 10/22/15		  
 		  
 		  
188,000		  
 		  
 		  
 		  
112,625		  
 
           
Mexico — 1.7%          
           
Mexican Bonos:          
7.00%, 06/19/14   7,070    552,463 
9.50%, 12/18/14   9,000    734,334 
7.75%, 12/14/17   5,510    469,916 
         1,756,713 
           
Romania — 0.9%          
           
Romania Government Bonds:          
5.80%, 10/26/15   1,670    523,368 
5.90%, 07/26/17   1,100    350,647 
         874,015 
           
Russia — 1.8%          
           
Russia Government Bonds - OFZ:          
6.90%, 08/03/16   7,438    232,484 
7.50%, 02/27/19   6,590    209,741 
7.60%, 04/14/21   15,289    486,724 
7.60%, 07/20/22   8,548    271,070 
7.00%, 01/25/23   11,700    356,581 
8.15%, 02/03/27   10,700    345,753 
         1,902,353 
           
South Africa — 0.7%          
           
Republic of South Africa,
8.25%, 09/15/17		   6,400    668,860 
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

September 30, 2013 (unaudited)

 

Description  Principal
Amount
(000) (c)		   Value 
Turkey — 1.7%          
           
Turkey Government Bonds:          
4.50%, 02/11/15   1,349   $691,672 
4.00%, 04/29/15   2,026    1,034,183 
         1,725,855 
           
Uruguay — 0.0%          
           
Uruguay Monetary Regulation Bill,
0.00%, 01/31/14		   900    39,833 
           
Total Foreign Government Obligations
(Identified cost $10,076,337)		        9,739,708 

 

Description  Shares   Value 
Short-Term Investment — 2.6%          
           
State Street Institutional Treasury Money
Market Fund
(Identified cost $2,706,099)		   2,706,099   $2,706,099 
           
Total Investments — 113.0%
(Identified cost $109,322,363) (d), (e)		       $116,384,594 
           
Liabilities in Excess of Cash and
Other Assets — (13.0)%		        (13,412,813)
           
Net Assets — 100.0%       $102,971,781 
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

September 30, 2013 (unaudited)

 

Forward Currency Purchase Contracts open at September 30, 2013:

 

Currency  Counterparty  Expiration
Date		  Foreign Currency
Amount		  U.S. $ Cost
on Origination
Date		  U.S. $
Current
Value		  Unrealized
Appreciation		  Unrealized
Depreciation
 BRL    UBS    10/02/13    1,489,815   $670,786   $672,208   $1,422   $— 
 CLP    BNP    10/16/13    224,972,000    440,000    444,880    4,880    — 
 CLP    BNP    11/08/13    230,137,600    448,000    453,661    5,661    — 
 CLP    UBS    10/10/13    294,579,300    591,465    582,992    —    8,473 
 CNY    HSB    10/21/13    1,246,582    202,000    203,530    1,530    — 
 CNY    SCB    10/21/13    4,736,944    765,876    773,404    7,528    — 
 COP    BNP    12/02/13    425,100,000    221,032    221,835    803    — 
 COP    CIT    10/03/13    425,100,000    218,000    222,980    4,980    — 
 COP    CIT    10/16/13    1,821,636,800    944,000    954,490    10,490    — 
 COP    HSB    10/08/13    765,107,200    401,084    401,161    77    — 
 COP    UBS    11/05/13    902,662,600    462,098    472,193    10,095    — 
 CZK    BNP    10/07/13    9,837,440    499,685    518,118    18,433    — 
 CZK    BNP    11/22/13    14,774,337    769,486    778,309    8,823    — 
 CZK    JPM    10/07/13    9,543,896    484,774    502,657    17,883    — 
 EUR    BRC    10/01/13    376,652    507,915    509,554    1,639    — 
 EUR    BRC    11/25/13    542,273    734,857    733,719    —    1,138 
 EUR    CIT    11/06/13    400,035    526,488    541,234    14,746    — 
 EUR    JPM    11/06/13    40,000    53,396    54,118    722    — 
 EUR    JPM    11/06/13    84,741    113,500    114,652    1,152    — 
 GHS    CIT    11/25/13    337,000    150,850    150,519    —    331 
 GHS    SCB    11/19/13    1,737,000    811,682    778,128    —    33,554 
 HUF    BRC    10/01/13    112,860,000    501,676    513,375    11,699    — 
 HUF    BRC    10/31/13    115,315,200    518,947    523,444    4,497    — 
 HUF    JPM    10/10/13    105,199,200    457,065    478,250    21,185    — 
 HUF    JPM    10/10/13    192,397,220    858,991    874,665    15,674    — 
 HUF    JPM    10/15/13    168,200,980    755,591    764,389    8,798    — 
 IDR    BRC    10/03/13    3,709,072,500    325,500    320,243    —    5,257 
 IDR    BRC    10/17/13    5,784,040,500    502,086    498,165    —    3,921 
 IDR    JPM    10/03/13    2,074,968,000    184,000    179,154    —    4,846 
 INR    HSB    10/31/13    22,766,400    360,000    360,706    706    — 
 INR    JPM    02/10/14    54,104,300    961,000    836,284    —    124,716 
 INR    SCB    10/15/13    22,413,435    349,500    356,765    7,265    — 
 KRW    CIT    10/23/13    925,902,480    852,000    860,393    8,393    — 
 KRW    HSB    10/10/13    719,743,350    654,000    669,384    15,384    — 
 KZT    CIT    01/06/14    43,187,880    280,113    275,665    —    4,448 
 KZT    CIT    03/17/14    63,292,260    404,941    398,193    —    6,748 
 KZT    HSB    10/30/13    79,207,200    513,000    512,883    —    117 
 KZT    HSB    06/16/14    51,424,800    324,140    318,035    —    6,105 
 KZT    HSB    06/16/14    79,207,200    498,849    489,855    —    8,994 
 KZT    UBS    02/28/14    52,830,750    340,844    333,539    —    7,305 
 MXN    CIT    10/21/13    1,940,727    149,956    148,030    —    1,926 
 MXN    UBS    10/21/13    5,117,921    393,000    390,371    —    2,629 
 MYR    CIT    10/18/13    848,622    268,000    260,077    —    7,923 
 MYR    JPM    10/18/13    3,359,745    1,025,000    1,029,660    4,660    — 
 MYR    JPM    11/06/13    767,968    233,000    235,064    2,064    — 
 NGN    BRC    06/18/14    20,851,000    116,000    120,720    4,720    — 
 NGN    CIT    10/23/13    135,053,600    824,000    831,720    7,720    — 
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

September 30, 2013 (unaudited)

 

Forward Currency Purchase Contracts open at September 30, 2013 (concluded):

 

Currency  Counterparty  Expiration
Date		  Foreign Currency
Amount		  U.S. $ Cost
on Origination
Date		  U.S. $
Current
Value		  Unrealized
Appreciation		  Unrealized
Depreciation
 NGN    JPM    06/17/14    23,400,000   $130,000   $135,513   $5,513   $— 
 NGN    SCB    10/31/13    23,572,000    141,065    144,773    3,708    — 
 NGN    SCB    10/31/13    46,469,800    278,013    285,406    7,393    — 
 NGN    SCB    12/18/13    103,802,600    610,604    626,548    15,944    — 
 NGN    SCB    03/20/14    85,737,200    493,452    507,741    14,289    — 
 PEN    BNP    10/18/13    1,327,253    477,000    475,653    —    1,347 
 PEN    BNP    10/24/13    1,054,809    382,385    377,743    —    4,642 
 PEN    BNP    11/04/13    833,585    293,000    298,124    5,124    — 
 PEN    BNP    11/22/13    1,591,269    570,000    567,941    —    2,059 
 PEN    UBS    10/21/13    893,106    316,985    319,950    2,965    — 
 PHP    JPM    10/16/13    31,190,220    719,000    716,456    —    2,544 
 PHP    JPM    12/12/13    34,646,170    793,000    795,720    2,720    — 
 PHP    SCB    01/13/14    21,689,080    497,000    497,981    981    — 
 PLN    BNP    10/22/13    1,454,181    460,169    465,103    4,934    — 
 PLN    BRC    10/21/13    2,612,172    822,000    835,523    13,523    — 
 PLN    JPM    11/05/13    1,600,369    495,739    511,433    15,694    — 
 RON    JPM    10/04/13    2,529,653    752,895    768,127    15,232    — 
 RON    JPM    11/12/13    2,537,717    743,000    768,582    25,582    — 
 RSD    BRC    12/09/13    77,822,550    897,038    905,306    8,268    — 
 RSD    CIT    10/16/13    33,269,680    389,986    391,672    1,686    — 
 RUB    BNP    12/09/13    16,735,950    506,000    510,440    4,440    — 
 RUB    UBS    12/13/13    16,238,600    490,000    494,886    4,886    — 
 SGD    HSB    10/23/13    968,517    769,000    772,027    3,027    — 
 THB    BNP    10/18/13    7,851,090    246,000    250,751    4,751    — 
 THB    SCB    10/21/13    24,238,127    763,214    773,986    10,772    — 
 TRY    JPM    10/21/13    694,639    345,077    342,670    —    2,407 
 TWD    JPM    10/16/13    14,930,000    503,711    505,060    1,349    — 
 UGX    BRC    10/11/13    909,568,000    351,456    355,879    4,423    — 
 UGX    CIT    10/25/13    647,722,000    253,412    252,531    —    881 
 UYU    CIT    10/28/13    4,515,000    208,835    203,752    —    5,083 
 UYU    HSB    10/21/13    3,000,000    136,986    135,611    —    1,375 
 UYU    JPM    10/07/13    11,948,000    528,194    541,925    13,731    — 
 UYU    JPM    11/25/13    5,336,100    242,000    239,194    —    2,806 
 VND    CIT    10/16/13    1,392,000,000    64,000    65,805    1,805    — 
 ZAR    JPM    10/28/13    9,140,823    914,000    907,040    —    6,960 
 ZMW    BRC    11/07/13    3,072,000    549,061    571,591    22,530    — 
 ZMW    BRC    12/26/13    1,521,800    269,823    279,143    9,320    — 
 ZMW    JPM    04/08/14    400,000    67,522    71,043    3,521    — 
 ZMW    SCB    11/29/13    2,513,875    455,000    464,676    9,676    — 
 ZMW    SCB    12/19/13    789,746    137,228    145,149    7,921    — 
Total Forward Currency Purchase Contracts   $40,731,023   $40,941,825   $469,337   $258,535 

 

Forward Currency Sale Contracts open at September 30, 2013:

 

Currency  Counterparty  Expiration
Date		  Foreign Currency
Amount		  U.S. $ Cost
on Origination
Date		  U.S. $
Current
Value		  Unrealized
Appreciation		  Unrealized
Depreciation
 BRL    UBS    10/02/13    1,489,815   $627,000   $672,208   $—   $45,208 
 BRL    UBS    11/04/13    1,422,955    636,000    637,039    —    1,039 
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

September 30, 2013 (unaudited)

 

Forward Currency Sale Contracts open at September 30, 2013 (concluded):

 

Currency  Counterparty  Expiration
Date		  Foreign Currency
Amount		  U.S. $ Cost
on Origination
Date		  U.S. $
Current
Value		  Unrealized
Appreciation		  Unrealized
Depreciation
 CLP    UBS    10/10/13    227,909,500   $455,000   $451,049   $3,951   $— 
 COP    BNP    10/03/13    425,100,000    222,216    222,980    —    764 
 CZK    BNP    11/22/13    10,821,888    560,000    570,095    —    10,095 
 EUR    BNP    10/07/13    380,000    499,685    514,090    —    14,405 
 EUR    BNP    10/25/13    733,000    966,860    991,696    —    24,836 
 EUR    BNP    10/25/13    945,000    1,258,159    1,278,516    —    20,357 
 EUR    BRC    10/01/13    375,000    501,676    507,319    —    5,643 
 EUR    BRC    10/31/13    384,000    518,947    519,532    —    585 
 EUR    BRC    12/09/13    664,866    897,038    899,625    —    2,587 
 EUR    CIT    10/16/13    287,502    389,986    388,960    1,026    — 
 EUR    HSB    12/23/13    814,549    1,103,714    1,102,197    1,517    — 
 EUR    JPM    10/07/13    368,000    484,774    497,855    —    13,081 
 EUR    JPM    10/15/13    562,000    755,590    760,326    —    4,736 
 EUR    JPM    11/05/13    375,000    495,739    507,362    —    11,623 
 EUR    JPM    11/06/13    1,842,931    2,446,352    2,493,427    —    47,075 
 EUR    UBS    11/29/13    197,000    262,986    266,553    —    3,567 
 EUR    UBS    11/29/13    421,032    558,531    569,681    —    11,150 
 HUF    BRC    10/01/13    112,860,000    507,915    513,374    —    5,459 
 HUF    UBS    10/21/13    6,277,880    28,000    28,517    —    517 
 IDR    BRC    10/03/13    5,784,040,500    506,040    499,397    6,643    — 
 JPY    CIT    12/18/13    47,545,407    481,000    483,942    —    2,942 
 JPY    HSB    11/25/13    88,625,936    909,357    901,904    7,453    — 
 JPY    SCB    10/28/13    88,021,442    881,360    895,612    —    14,252 
 JPY    UBS    10/28/13    23,065,788    232,000    234,693    —    2,693 
 KZT    CIT    10/10/13    41,150,040    267,000    267,215    —    215 
 KZT    HSB    10/30/13    79,207,200    513,499    512,883    616    — 
 NGN    CIT    10/23/13    13,765,750    85,000    84,776    224    — 
 RUB    BRC    10/28/13    15,688,462    487,000    482,226    4,774    — 
 TRY    BRC    02/12/14    78,512    39,274    37,937    1,337    — 
 TRY    HSB    10/21/13    694,639    344,000    342,670    1,330    — 
 TRY    JPM    12/04/13    548,967    278,000    268,724    9,276    — 
 TRY    JPM    12/04/13    650,495    319,842    318,423    1,419    — 
 TRY    JPM    04/21/14    694,639    333,528    331,333    2,195    — 
 ZAR    CIT    10/28/13    8,209,902    819,000    814,665    4,335    — 
Total Forward Currency Sale Contracts   $20,672,068   $20,868,801    46,096    242,829 
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts   $515,433   $501,364 

 

Currency Abbreviations:
BRL — Brazilian Real
CLP — Chilean Peso
CNY — Chinese Renminbi
COP — Colombian Peso
CZK — Czech Koruna
EUR — Euro
GHS — Ghanaian Cedi
HUF — Hungarian Forint
IDR — Indonesian Rupiah
INR — Indian Rupee
JPY — Japanese Yen
KRW — South Korean Won
KZT — Kazakhstan Tenge
MXN — Mexican New Peso
MYR — Malaysian Ringgit
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

September 30, 2013 (unaudited)

 

NGN — Nigerian Naira
PEN — Peruvian New Sol
PHP — Philippine Peso
PLN — Polish Zloty
RON — New Romanian Leu
RSD — Serbian Dinar
RUB — Russian Ruble
SGD — Singapore Dollar
THB — Thai Baht
TRY — New Turkish Lira
TWD — New Taiwan Dollar
UGX — Ugandan Shilling
UYU — Uruguayan Peso
VND — Vietnamese Dong
ZAR — South African Rand
ZMW — Zambian Kwacha
 
Counterparty Abbreviations:
BNP — BNP Paribas SA
BRC — Barclays Bank PLC
CIT — Citibank NA
HSB — HSBC Bank USA
JPM — JPMorgan Chase Bank
SCB — Standard Chartered Bank
UBS — UBS AG
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

September 30, 2013 (unaudited)

 

(a) Pursuant to Rule 144A under the Securities Act of 1933, the security may only be traded among “qualified institutional buyers.” At September 30, 2013, this security amounted to 1.1% of net assets of Lazard World Dividend & Income Fund, Inc. (the “Fund”), and is considered to be liquid.
(b) Security valued using Level 2 inputs, based on reference to a similar security from the same issuer which was trading on an active market, under accounting principles generally accepted in the United States of America (“GAAP”) hierarchy.
(c) Principal amount denominated in respective country’s currency.
(d) The Fund, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.
(e) For federal income tax purposes, the aggregate cost was $109,322,363, aggregate gross unrealized appreciation was $10,775,050, aggregate gross unrealized depreciation was $3,712,819, and the net unrealized appreciation was $7,062,231.

 

Security Abbreviations:

ADR — American Depositary Receipt

GDR — Global Depositary Receipt

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

NTN-F — Brazil Sovereign “Nota do Tesouro Nacional” Series F

REIT — Real Estate Investment Trust

 

Portfolio holdings by industry (as a percentage of net assets):
Apparel & Textiles   0.7%
Automotive   3.3 
Banking   10.3 
Commercial Services   2.4 
Computer Software   0.9 
Consumer Products   2.6 
Electric   3.8 
Energy   1.0 
Energy Integrated   9.3 
Energy Services   1.4 
Financial Services   5.1 
Food & Beverages   0.8 
Forest & Paper Products   0.6 
Health Services   1.1 
Housing   1.4 
Insurance   10.4 
Leisure & Entertainment   7.5 
Manufacturing   1.5 
Metals & Mining   2.1 
Pharmaceutical & Biotechnology   1.7 
Real Estate   5.2 
Semiconductors & Components   4.6 
Technology Hardware   3.3 
Telecommunications   13.2 
Transportation   6.7 
Subtotal   100.9 
Foreign Government Obligations   9.5 
Short-Term Investment   2.6 
Total Investments   113.0%
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

September 30, 2013 (unaudited)

 

Valuation of Investments:

 

Net asset value per share is determined by State Street Bank and Trust Company for the Fund on each day the New York Stock Exchange (“NYSE”) is open for business. Market values for securities listed on the NYSE, NASDAQ national market or other US or foreign exchanges or markets are generally based on the last reported sales price on the exchange or market on which the security is principally traded, generally as of the close of regular trading on the NYSE (normally 4:00 p.m. Eastern time) on each valuation date; securities not traded on the valuation date are valued at the most recent quoted bid price. The Fund values NASDAQ-traded securities at the NASDAQ Official Closing Price, which may not be the last reported sales price in certain instances. Forward currency contracts are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s net asset value.

 

Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by independent pricing services which are based primarily on institutional trading in similar groups of securities, or by using brokers’ quotations or a matrix system which considers such factors as other security prices, yields and maturities. Debt securities maturing in 60 days or less are valued at amortized cost, except where to do so would not accurately reflect their fair value, in which case such securities are valued at fair value as determined by, or in accordance with procedures approved by, the Board of Directors (the “Board”).

 

The Valuation Committee of Lazard Asset Management LLC (the “Investment Manager”), which meets periodically under the direction of the Board, may evaluate a variety of factors to determine the fair value of securities for which 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 Manager’s analysts also will be considered.

 

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 Fund’s net asset value is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Board. The fair value of foreign securities may be determined with the assistance of an independent pricing service using correlations between the movement of prices of such securities and indices of domestic securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. Foreign securities may trade on days when the Fund is not open for business, thus affecting the value of the Fund’s assets on days when Fund shareholders may not be able to buy or sell Fund shares.

 

The effect of using fair value pricing is that the net asset value of the Fund will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ net asset values.

 

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 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 Fund’s 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 investment’s 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.

 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (concluded)

September 30, 2013 (unaudited)

 

·Level 1 – unadjusted quoted prices in active markets for identical investments
·Level 2 – other significant observable inputs (including unadjusted quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
·Level 3 – significant unobservable inputs (including the Fund’s 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 Fund’s investments by each fair value hierarchy level as of September 30, 2013:

 

Description  Unadjusted Quoted
Prices in Active
Markets for
Identical
Investments
(Level 1)		  Significant Other
Observable
Inputs
(Level 2)		  Significant
Unobservable
Inputs
(Level 3)		  Balance as of
September 30, 2013		 
Assets:                 
Common Stocks                 
Russia  $4,076,177  $1,166,536  $—  $5,242,713 
Thailand   —   2,062,745   —   2,062,745 
Other   94,617,727   —   —   94,617,727 
Preferred Stocks   2,015,602   —   —   2,015,602 
Foreign Government Obligations   —   9,739,708   —   9,739,708 
Short-Term Investment   —   2,706,099   —   2,706,099 
Other Financial Instruments*                 
Forward Currency Contracts   —   515,433   —   515,433 
Total  $100,709,506  $16,190,521  $—  $116,900,027 
Liabilities:                 
Other Financial Instruments*                 
Forward Currency Contracts  $—  $(501,364) $—  $(501,364)

 

* Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation/depreciation.

 

Certain equity securities (see footnote (b)) included in Level 2 were valued based on reference to similar securities from the same issuers which were trading on active markets. The foreign government obligations included in Level 2 were valued on the basis of prices provided by independent pricing services. The forward currency contracts included in Level 2 were valued using quotations provided by an independent pricing service. The short-term investment included in Level 2 (a money market fund) was valued at the fund’s net asset value.

 

In connection with the periodic implementation of fair value pricing procedures with respect to foreign securities, certain equity securities (other than those securities described in footnote (b)) were transferred from Level 1 to Level 2 as a result of fair value pricing procedure triggers being met and would revert to Level 1 when the fair value pricing procedure triggers are no longer met. There were no other transfers into or out of Levels 1, 2 or 3 during the period ended September 30, 2013.

 
Item 2. Controls and Procedures.

 

(a)          The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q 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-Q is accumulated and communicated to the Registrant’s 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 Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940 are attached as Exhibit 99.CERT.

 

SIGNATURES

 

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

 

Lazard World Dividend & Income Fund, Inc.

 

By: /s/ Charles L. Carroll  
  Charles L. Carroll  
  Chief Executive Officer  
     
Date: November 29, 2013  

 

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

 

By: /s/ Charles L. Carroll  
  Charles L. Carroll  
  Chief Executive Officer  
     
Date: November 29, 2013  
     
By: /s/ Stephen St. Clair  
  Stephen St. Clair  
  Chief Financial Officer  
     
Date: November 29, 2013