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: 3/31/2015

 

 

Item 1. Schedule of Investments.

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments

March 31, 2015 (unaudited)

         
Description  Shares   Value 
Common Stocks — 96.7%          
Australia — 3.2%          
Asaleo Care, Ltd.   592,645   $852,169 
DUET Group   562,671    1,090,560 
Transurban Group   153,743    1,113,473 
         3,056,202 
Austria — 1.0%          
UNIQA Insurance Group AG   100,515    908,786 
Belgium — 1.5%          
bpost SA   51,568    1,447,294 
Brazil — 4.3%          
Ambev SA   164,600    951,534 
Banco do Brasil SA   175,717    1,261,355 
Cia Hering   46,400    238,430 
Direcional Engenharia SA   170,200    332,769 
Grendene SA   127,900    655,219 
Natura Cosmeticos SA   74,600    628,766 
         4,068,073 
Cambodia — 0.7%          
NagaCorp, Ltd.   1,034,000    684,585 
Canada — 0.9%          
Alaris Royalty Corp.   34,000    886,408 
China — 5.3%          
Agricultural Bank of China, Ltd., Class H   4,174,000    2,062,712 
China Construction Bank Corp., Class H   2,035,180    1,688,641 
China Shenhua Energy Co., Ltd., Class H   300,500    767,310 
Industrial and Commercial Bank of China, Ltd., Class H   680,440    501,409 
         5,020,072 
Finland — 1.0%          
Sampo Oyj, A Shares   18,966    958,363 
France — 9.8%          
AXA SA   111,802    2,819,274 
Eutelsat Communications SA   22,903    758,308 
Gaztransport Et Technigaz SA   11,070    653,238 
Rexel SA   86,331    1,628,617 
Societe Television Francaise 1   78,693    1,391,582 
Total SA   39,585    1,969,407 
         9,220,426 
Germany — 2.3%          
Allianz SE   4,534    787,836 
RTL Group SA   14,780    1,421,271 
         2,209,107 
Hong Kong — 0.9%          
BOC Hong Kong Holdings, Ltd.   239,500    851,989 

 

Description  Shares   Value 
India — 1.0%          
Indiabulls Housing Finance, Ltd.   103,199   $915,395 
Israel — 4.0%          
Bezeq The Israeli Telecommunication Corp., Ltd.   1,316,056    2,452,138 
Teva Pharmaceutical Industries, Ltd. Sponsored ADR   21,619    1,346,864 
         3,799,002 
Italy — 3.5%          
Eni SpA   68,699    1,189,038 
Mediolanum SpA   157,556    1,272,346 
Snam SpA   162,935    789,217 
         3,250,601 
Japan — 2.7%          
Canon, Inc.   29,300    1,036,160 
Japan Tobacco, Inc.   34,100    1,077,420 
Yumeshin Holdings Co., Ltd.   55,100    411,939 
         2,525,519 
Macau — 4.2%          
MGM China Holdings, Ltd.   296,400    558,509 
Sands China, Ltd.   462,400    1,913,104 
Wynn Macau, Ltd.   684,800    1,477,149 
         3,948,762 
Mexico — 0.6%          
Fibra Uno Administracion SA de CV REIT   219,400    581,097 
Russia — 1.3%          
Mobile TeleSystems OJSC Sponsored ADR   120,680    1,218,868 
South Africa — 1.7%          
Vodacom Group, Ltd.   144,047    1,575,985 
Sweden — 2.0%          
Swedbank AB, A Shares   77,220    1,845,645 
Switzerland — 1.2%          
Cembra Money Bank AG   18,932    1,160,047 
Taiwan — 5.8%          
Radiant Opto-Electronics Corp.   375,660    1,167,708 
Siliconware Precision Industries Co.   1,252,000    2,062,652 
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR   96,085    2,256,076 
         5,486,436 
Turkey — 0.5%          
Tofas Turk Otomobil Fabrikasi AS   72,676    439,587 
United Kingdom — 6.4%          
Infinis Energy PLC   486,966    1,357,357 
Royal Dutch Shell PLC, A Shares   35,701    1,066,137 
St James’s Place PLC   67,291    931,103 

 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2015 (unaudited)

         
Description  Shares   Value 
UBM PLC   94,841   $744,074 
Vodafone Group PLC   607,123    1,984,103 
         6,082,774 
United States — 30.9%          
Artisan Partners Asset Management, Inc., Class A   30,224    1,373,983 
Blackstone Mortgage Trust, Inc., Class A   83,859    2,379,080 
CBL & Associates Properties, Inc.   22,865    452,727 
CenturyLink, Inc.   35,533    1,227,665 
Cisco Systems, Inc.   107,447    2,957,479 
ConocoPhillips   37,500    2,334,750 
Intel Corp.   30,852    964,742 
International Business Machines Corp.   6,150    987,075 
International Paper Co.   24,157    1,340,472 
Kinder Morgan, Inc.   20,300    853,818 
Lexington Realty Trust REIT   49,365    485,258 
Maxim Integrated Products, Inc.   70,025    2,437,570 
Medical Properties Trust, Inc. REIT   41,785    615,911 
Microsoft Corp.   16,889    686,622 
PacWest Bancorp   33,528    1,572,128 
Pattern Energy Group, Inc.   62,777    1,777,844 
People’s United Financial, Inc.   55,470    843,144 
Pfizer, Inc.   42,842    1,490,473 
TAL International Group, Inc.   21,000    855,330 
The Williams Cos., Inc.   19,891    1,006,286 
Tronox, Ltd., Class A   59,675    1,213,193 
United Bankshares, Inc.   36,034    1,354,158 
Veritiv Corp. (a)   1    44 
         29,209,752 
Total Common Stocks
(Identified cost $95,706,993)		        91,350,775 
Preferred Stocks — 2.3%          
United States — 2.3%          
Capital One Financial Corp., Series B   39,496    996,879 
JPMorgan Chase & Co., Series P   23,179    571,362 
Regions Financial Corp., Series A   23,599    594,931 
Total Preferred Stocks
(Identified cost $1,987,324)		        2,163,172 

 

Description  Principal
Amount
(000) (b)		   Value 
Foreign Government Obligations  — 12.5%          
Brazil — 0.6%          
Brazil NTN-B:          
6.00%, 08/15/16   273   $221,364 

 

Description  Principal
Amount
(000) (b)		   Value 
6.00%, 08/15/18   460   $371,062 
         592,426 
Colombia — 0.1%          
Republic of Colombia,
12.00%, 10/22/15		   188,000    74,815 
Hungary — 1.8%          
Hungary Government Bond,
7.50%, 11/12/20		   385,810    1,716,895 
Indonesia — 0.8%          
Indonesia Government Bond,
7.875%, 04/15/19		   9,937,000    778,240 
Israel — 0.9%          
Israel Government Bond - Galil,
5.00%, 04/30/15		   2,560    848,643 
Mexico — 3.0%          
Mexican Bonos,
4.75%, 06/14/18		   25,300    1,659,500 
Mexican Udibonos,
2.50%, 12/10/20		   17,748    1,166,558 
         2,826,058 
Romania — 1.4%          
Romania Government Bonds:          
5.85%, 04/26/23   4,180    1,213,276 
5.80%, 07/26/27   380    114,316 
         1,327,592 
Serbia — 0.9%          
Serbia Treasury Bonds:          
10.00%, 02/06/19   17,500    157,351 
10.00%, 03/20/21   33,930    297,112 
10.00%, 06/05/21   42,530    366,387 
         820,850 
South Africa — 1.5%          
Republic of South Africa:          
10.50%, 12/21/26   6,880    684,302 
8.25%, 03/31/32   9,110    750,049 
         1,434,351 
Uganda — 1.0%          
Uganda Government Bond,
12.875%, 05/19/16		   742,700    239,850 
Uganda Treasury Bills:          
0.00%, 05/28/15   587,300    193,260 
0.00%, 09/03/15   688,000    219,404 
0.00%, 09/17/15   324,000    102,273 
0.00%, 10/29/15   528,900    164,832 
         919,619 

 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2015 (unaudited)

Description  Principal
Amount
(000) (b)		   Value 
Uruguay — 0.3%          
Republica Orient Uruguay,
5.00%, 09/14/18		   6,576   $261,315 
Zambia — 0.2%          
Zambia Treasury Bill,
0.00%, 06/15/15		   1,600    202,252 
Total Foreign Government Obligations
(Identified cost $13,107,771)		        11,803,056 

 

Description  Shares   Value 
Short-Term Investment — 3.4%          
State Street Institutional Treasury Money Market Fund
(Identified cost $3,222,207)		   3,222,207   $3,222,207 
Total Investments — 114.9%
(Identified cost $114,024,295) (c), (d)		      $108,539,210 
Liabilities in Excess of Cash and Other Assets — (14.9)%       (14,084,751)
Net Assets — 100.0%      $94,454,459 
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2015 (unaudited)

Forward Currency Purchase Contracts open at March 31, 2015:
Currency  Counterparty  Expiration
Date		  Foreign Currency
Amount		   US $ Cost
on Origination
Date		   US $
Current
Value		   Unrealized
Appreciation		   Unrealized
Depreciation		 
BRL  SCB  04/24/15   1,552,362   $483,000   $483,754   $754   $— 
BRL  SCB  04/24/15   2,426,090    740,000    756,029    16,029    — 
CLP  HSB  04/27/15   465,066,250    745,000    743,214    —    1,786 
CLP  SCB  06/09/15   423,294,250    677,000    673,669    —    3,331 
CLP  UBS  04/17/15   463,344,350    731,000    741,055    10,055    — 
CNH  BRC  04/02/15   701,922    113,000    113,105    105    — 
CNH  BRC  05/04/15   701,922    112,686    112,678    —    8 
CNH  HSB  04/02/15   3,764,231    598,000    606,552    8,552    — 
CNH  HSB  04/17/15   5,892,120    936,000    947,768    11,768    — 
CNH  HSB  05/04/15   3,764,231    604,278    604,263    —    15 
CNY  HSB  09/10/15   9,176,194    1,454,000    1,457,072    3,072    — 
COP  HSB  04/09/15   1,203,175,000    475,000    462,558    —    12,442 
COP  SCB  04/24/15   2,267,598,000    852,000    870,102    18,102    — 
DOP  CIT  04/09/15   21,267,180    467,000    474,513    7,513    — 
EGP  BNP  04/06/15   1,062,600    138,721    139,060    339    — 
EGP  BNP  04/20/15   1,174,025    151,000    152,854    1,854    — 
EGP  BNP  06/10/15   869,685    111,000    111,189    189    — 
EGP  CIT  05/11/15   2,166,600    276,000    279,989    3,989    — 
EGP  CIT  05/18/15   1,528,800    195,000    197,105    2,105    — 
EGP  JPM  04/14/15   1,046,250    135,000    136,518    1,518    — 
EUR  JPM  06/10/15   278,000    319,241    299,198    —    20,043 
IDR  JPM  04/13/15   6,809,250,000    525,000    519,378    —    5,622 
IDR  JPM  05/11/15   11,115,440,000    863,000    842,580    —    20,420 
ILS  JPM  05/04/15   1,871,829    467,000    470,376    3,376    — 
INR  HSB  04/13/15   25,124,640    390,043    400,736    10,693    — 
INR  HSB  04/23/15   47,061,168    749,000    749,089    89    — 
INR  SCB  05/27/15   39,224,080    623,000    619,982    —    3,018 
INR  SCB  06/23/15   38,750,880    607,000    609,029    2,029    — 
KRW  CIT  04/13/15   852,220,440    774,000    767,868    —    6,132 
KRW  CIT  05/26/15   601,663,360    542,000    541,358    —    642 
KRW  SCB  04/13/15   535,280,400    486,000    482,299    —    3,701 
KWD  BNP  08/06/15   173,514    605,000    575,389    —    29,611 
KWD  CIT  08/18/15   7,616    26,028    25,249    —    779 
KWD  CIT  08/18/15   141,763    494,000    469,989    —    24,011 
KZT  CIT  06/11/15   31,760,660    167,426    155,594    —    11,832 
KZT  CIT  06/12/15   59,783,000    315,145    292,426    —    22,719 
KZT  HSB  04/28/15   45,425,000    230,000    239,559    9,559    — 
KZT  JPM  05/18/15   35,512,000    184,000    181,420    —    2,580 
MYR  CIT  04/27/15   986,154    269,000    265,672    —    3,328 
MYR  SCB  06/05/15   3,437,544    918,270    923,085    4,815    — 
PHP  HSB  04/13/15   37,967,030    853,000    848,729    —    4,271 
PHP  HSB  04/30/15   41,571,350    925,000    928,419    3,419    — 
PLN  JPM  05/04/15   1,817,833    490,425    479,186    —    11,239 
PLN  JPM  05/04/15   3,613,609    972,544    952,557    —    19,987 
PLN  JPM  06/08/15   1,832,402    489,084    482,469    —    6,615 
RON  JPM  05/22/15   1,917,505    488,000    466,678    —    21,322 
RSD  CIT  08/27/15   9,962,900    93,901    85,394    —    8,507 
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2015 (unaudited)

Forward Currency Purchase Contracts open at March 31, 2015 (concluded):
Currency  Counterparty  Expiration
Date		  Foreign Currency
Amount		   US $ Cost
on Origination
Date		   US $
Current
Value		   Unrealized
Appreciation		   Unrealized
Depreciation		 
THB  BRC  05/22/15   15,382,200   $466,269   $471,719   $5,450   $— 
THB  SCB  04/23/15   15,950,340    485,108    489,734    4,626    — 
TRY  CIT  06/22/15   1,216,448    458,000    458,367    367    — 
TRY  JPM  04/24/15   601,703    227,000    230,103    3,103    — 
TRY  JPM  04/24/15   1,244,795    470,000    476,034    6,034    — 
TRY  JPM  04/24/15   1,306,897    549,000    499,783    —    49,217 
TRY  JPM  04/24/15   1,315,502    524,000    503,074    —    20,926 
TRY  JPM  05/12/15   2,520,474    992,000    959,381    —    32,619 
UGX  BRC  07/08/15   1,760,293,000    586,178    571,614    —    14,564 
UGX  CIT  05/29/15   545,195,000    185,000    179,689    —    5,311 
UGX  CIT  08/24/15   742,840,000    245,000    237,735    —    7,265 
UYU  CIT  04/20/15   8,367,680    331,000    321,381    —    9,619 
ZAR  JPM  04/07/15   5,611,068    487,000    462,235    —    24,765 
ZAR  JPM  04/07/15   5,814,966    471,000    479,032    8,032    — 
ZAR  JPM  04/07/15   8,475,430    698,000    698,198    198    — 
ZAR  JPM  05/18/15   6,425,226    538,000    525,774    —    12,226 
ZMW  BRC  02/23/16   2,121,840    252,000    238,729    —    13,271 
ZMW  CIT  09/08/15   4,082,712    536,000    497,203    —    38,797 
ZMW  SCB  04/13/15   60,147    7,912    7,836    —    76 
Total Forward Currency Purchase Contracts     $32,369,259   $32,044,376   $147,734   $472,617 
                        
Forward Currency Sale Contracts open at March 31, 2015:
Currency  Counterparty  Expiration
Date		  Foreign Currency
Amount		   US $ Cost
on Origination
Date		   US $
Current
Value		   Unrealized
Appreciation		   Unrealized
Depreciation		 
BRL  CIT  04/24/15   1,580,535   $495,000   $492,533   $2,467   $— 
BRL  CIT  04/24/15   2,345,036    724,000    730,771    —    6,771 
BRL  CIT  02/18/16   704,363    225,000    201,162    23,838    — 
CNH  BRC  04/02/15   701,922    113,104    113,105    —    1 
CNH  HSB  04/02/15   3,764,231    606,547    606,552    —    5 
COP  HSB  04/09/15   1,880,508,000    732,001    722,957    9,044    — 
EUR  CIT  08/27/15   78,104    93,902    84,167    9,735    — 
EUR  JPM  05/04/15   437,000    490,425    470,081    20,344    — 
EUR  JPM  05/22/15   887,245    969,000    954,641    14,359    — 
EUR  JPM  05/22/15   1,371,000    1,464,804    1,475,143    —    10,339 
EUR  JPM  06/08/15   440,000    489,084    473,536    15,548    — 
EUR  JPM  06/23/15   429,000    466,403    461,803    4,600    — 
EUR  JPM  06/23/15   1,371,000    1,465,448    1,475,831    —    10,383 
HUF  JPM  04/27/15   469,453,490    1,699,041    1,679,068    19,973    — 
IDR  SCB  04/13/15   6,610,000,000    500,000    504,180    —    4,180 
ILS  CIT  05/04/15   1,792,504    508,512    450,443    58,069    — 
ILS  JPM  05/04/15   471,270    117,000    118,427    —    1,427 
ILS  JPM  05/04/15   1,311,914    323,000    329,674    —    6,674 
ILS  JPM  05/04/15   1,993,100    494,227    500,851    —    6,624 
JPY  CIT  06/11/15   141,664,452    1,180,000    1,182,313    —    2,313 
JPY  HSB  05/18/15   49,333,691    407,000    411,592    —    4,592 
JPY  SCB  04/23/15   87,372,216    738,565    728,708    9,857    — 
KWD  CIT  08/06/15   173,514    592,805    575,390    17,415    — 
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2015 (unaudited)

Forward Currency Sale Contracts open at March 31, 2015 (concluded):
Currency  Counterparty  Expiration
Date		  Foreign Currency
Amount		   US $ Cost
on Origination
Date		   US $
Current
Value		   Unrealized
Appreciation		   Unrealized
Depreciation		 
KWD  CIT  08/18/15   149,379   $510,000   $495,238   $14,762   $— 
KZT  JPM  04/28/15   45,425,000    209,332    239,560    —    30,228 
MXN  BRC  06/19/15   5,977,098    383,000    389,919    —    6,919 
RON  JPM  05/22/15   2,471,105    631,334    601,412    29,922    — 
RON  JPM  06/10/15   1,228,454    319,241    298,884    20,357    — 
RON  JPM  06/10/15   4,231,547    1,164,000    1,029,538    134,462    — 
TRY  JPM  04/24/15   2,663,034    1,028,000    1,018,396    9,604    — 
UGX  BRC  07/08/15   490,032,000    166,000    159,126    6,874    — 
UGX  BRC  07/08/15   1,270,261,000    431,768    412,488    19,280    — 
UGX  CIT  04/23/15   469,046,000    156,871    156,067    804    — 
UGX  JPM  04/20/15   351,640,000    118,000    117,123    877    — 
ZAR  BNP  04/07/15   5,501,141    453,000    453,179    —    179 
ZAR  JPM  04/07/15   2,907,267    242,000    239,498    2,502    — 
ZAR  JPM  04/07/15   7,026,165    593,681    578,809    14,872    — 
ZAR  JPM  04/07/15   8,535,025    691,000    703,108    —    12,108 
ZAR  JPM  04/07/15   8,998,838    757,000    741,316    15,684    — 
Total Forward Currency Sale Contracts     $22,749,095   $22,376,589    475,249    102,743 
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts   $622,983   $575,360 
            
Currency Abbreviations:    
BRL — Brazilian Real KWD — Kuwaiti Dinar
CLP — Chilean Peso KZT — Kazakhstan Tenge
CNH — Yuan Renminbi MXN — Mexican New Peso
CNY — Chinese Renminbi MYR — Malaysian Ringgit
COP — Colombian Peso PHP — Philippine Peso
DOP — Dominican Republic Peso PLN — Polish Zloty
EGP — Egyptian Pound RON — New Romanian Leu
EUR — Euro RSD — Serbian Dinar
HUF — Hungarian Forint THB — Thai Baht
IDR — Indonesian Rupiah TRY — New Turkish Lira
ILS — Israeli Shekel UGX — Ugandan Shilling
INR — Indian Rupee UYU — Uruguayan Peso
JPY — Japanese Yen ZAR — South African Rand
KRW — South Korean Won ZMW — Zambian Kwacha
     

 

Counterparty Abbreviations:
BNP — BNP Paribas SA
BRC — Barclays Bank PLC
CIT — Citibank NA
HSB — HSBC Bank USA NA
JPM — JPMorgan Chase Bank NA
SCB — Standard Chartered Bank
UBS — UBS AG
 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2015 (unaudited)

(a) Non-income producing security.
(b) Principal amount denominated in respective country’s currency.
(c) For federal income tax purposes, the aggregate cost was $114,024,295, aggregate gross unrealized appreciation was $6,389,825, aggregate gross unrealized depreciation was $11,874,910, and the net unrealized depreciation was $5,485,085.
(d) Lazard World Dividend & Income Fund, Inc. (the “Fund”), at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.
   
Security Abbreviations:
ADR — American Depositary Receipt
NTN-B — Brazil Sovereign “Nota do Tesouro Nacional” Series B
OJSC — Open Joint Stock Company
REIT — Real Estate Investment Trust
 
Portfolio holdings by industry* (as a percentage of net assets):
Alcohol & Tobacco   2.1%
Automotive   0.5 
Banking   14.5 
Cable Television   0.8 
Chemicals   1.3 
Commercial Services   1.7 
Computer Software   0.7 
Construction & Engineering   1.1 
Electric   4.5 
Energy Exploration & Production   2.5 
Energy Integrated   5.3 
Energy Services   2.0 
Financial Services   5.9 
Forest & Paper Products   1.4 
Gas Utilities   0.8 
Household & Personal Products   1.6 
Housing   0.4 
Insurance   8.1 
Leisure & Entertainment   8.7 
Pharmaceutical & Biotechnology   3.0 
Real Estate   4.8 
Retail   0.9 
Semiconductors & Components   10.5 
Technology Hardware   4.2 
Telecommunications   9.0 
Transportation   2.7 
Subtotal   99.0 
Foreign Government Obligations   12.5 
Short-Term Investment   3.4 
Total Investments   114.9%
      
* Industry classifications may be different than those used for compliance monitoring purposes.
 
Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (concluded)

March 31, 2015 (unaudited)

 

Valuation of Investments:

 

Net asset value (“NAV”) per share is determined 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 NAV.

 

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.

 

The Valuation Committee of Lazard Asset Management LLC (the “Investment Manager”), which meets periodically and acts pursuant to delegated authority from the Board of Directors (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 portfolio managers/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 NAV 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 non-US 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 US securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. Non-US 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 stockholders may not be able to buy or sell Fund shares.

 

The effect of using fair value pricing is that the NAV 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’ NAVs.

 

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 accounting principles generally accepted in the United States of America 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:

 

• 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)

 

Changes in valuation technique may result in transfer into or out of the current assigned level within the hierarchy.

 

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 March 31, 2015:

 

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
March 31, 2015		 
Assets:                    
Common Stocks                    
Israel  $1,346,864   $2,452,138   $—   $3,799,002 
Taiwan   2,256,076    3,230,360    —    5,486,436 
Other   35,964,198    46,101,139    —    82,065,337 
Preferred Stocks   2,163,172    —    —    2,163,172 
Foreign Government Obligations   —    11,803,056    —    11,803,056 
Short-Term Investment   3,222,207    —    —    3,222,207 
Other Financial Instruments*
Forward Currency Contracts		   —    622,983    —    622,983 
Total  $44,952,517   $64,209,676   $—   $109,162,193 
Liabilities:                    
Other Financial Instruments*
Forward Currency Contracts		  $—   $(575,360)  $—   $(575,360)
*Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation/depreciation.

 

In connection with the periodic implementation of fair value pricing procedures with respect to non-US securities, certain equity securities can transfer 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. The Fund recognizes all transfers between levels as though they were transferred at the beginning of the reporting period. At March 31, 2015, securities valued at $5,079,284 were transferred from Level 2 to Level 1. There were no other transfers into or out of Levels 1, 2 or 3 during the period ended March 31, 2015.

 

 

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: May 28, 2015

 

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: May 28, 2015

 

By: /s/ Stephen St. Clair
  Stephen St. Clair
  Chief Financial Officer

 

Date: May 28, 2015