Form N-Q Lazard World Dividend & For: Mar 31

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: 3/31/2016

Item 1. Schedule of Investments.

 

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments

March 31, 2016 (unaudited)

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2016 (unaudited)

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2016 (unaudited)

Forward Currency Purchase Contracts open at March 31, 2016:

Currency		Counterparty		Settlement Date		Quantity		Cost on Origination Date^			Unrealized Appreciation		Unrealized Depreciation
CLP		SCB		04/08/16		243,099,600		352,472		$	10,311	$	—
CLP		SCB		05/23/16		256,690,000		380,000			1,523		—
CNH		HSB		04/14/16		4,673,978		728,000			—		5,176
CNY		SCB		04/29/16		7,004,220		1,070,000			11,896		—
COP		CIT		05/18/16		1,146,240,000		360,000			20,901		—
COP		SCB		04/22/16		1,126,755,000		365,000			10,349		—
DOP		CIT		04/04/16		43,045,000		930,904			5,515		—
DOP		CIT		04/11/16		7,787,700		168,128			1,336		—
DOP		CIT		05/09/16		7,269,150		157,991			72		—
DOP		CIT		06/02/16		12,800,000		275,955			1,275		—
DOP		CIT		06/30/16		10,975,140		228,554			8,142		—
DOP		CIT		07/01/16		43,045,000		936,372			—		8,202
EGP		BNP		11/30/16		3,233,750		325,000			—		3,041
EGP		BNP		02/24/17		3,658,950		346,000			4,924		—
EUR		JPM		04/04/16		938,259		3,021,193	TRY		—		3,605
EUR		JPM		05/02/16		317,000		1,351,402	PLN		—		1,005
EUR		JPM		05/20/16		593,000		2,524,400	PLN		—		388
HUF		CIT		04/13/16		198,699,990		724,000			—		3,828
HUF		CIT		04/13/16		334,757,786		1,233,766			—		20,464
HUF		JPM		06/01/16		108,096,450		342,999	EUR		492		—
HUF		JPM		06/30/16		182,788,410		580,999	EUR		—		1,075
IDR		CIT		03/22/17		5,609,990,000		401,000			—		3,991
IDR		JPM		05/24/16		626,838,000		47,202			—		289
INR		JPM		04/25/16		45,158,640		664,000			15,299		—
INR		JPM		04/25/16		73,859,280		1,108,000			3,029		—
INR		JPM		07/13/16		45,474,240		672,000			2,555		—
JPY		SCB		04/19/16		58,957,280		522,629			1,474		—
JPY		SCB		04/19/16		59,220,480		528,000			—		1,557
KRW		CIT		04/04/16		850,468,000		692,000			51,676		—
KRW		CIT		04/07/16		438,470,600		361,000			22,382		—
KRW		CIT		06/03/16		850,468,000		743,436			—		917
KRW		HSB		05/18/16		434,980,000		364,000			15,924		—
KZT		CIT		04/04/16		59,415,000		169,757			2,413		—
KZT		CIT		06/06/16		64,496,000		232,000			—		48,822
KZT		JPM		06/06/16		64,496,000		232,000			—		48,822
MYR		JPM		05/23/16		810,000		200,000			6,809		—
MYR		JPM		06/14/16		2,190,734		543,000			15,378		—
PHP		CIT		06/14/16		9,312,330		201,000			429		—
PHP		HSB		04/25/16		29,360,320		632,902			3,908		—
PHP		HSB		06/14/16		9,461,830		203,000			1,662		—
PHP		HSB		06/14/16		9,626,800		205,000			3,231		—
PHP		SCB		05/04/16		27,956,885		589,000			17,076		—
PLN		CIT		05/20/16		5,484,931		1,445,000			23,990		—
PLN		JPM		05/02/16		2,225,405		510,999	EUR		14,201		—
RUB		BNP		05/24/16		52,827,200		685,000			90,736		—
RUB		CIT		04/28/16		20,631,725		268,799			36,096		—

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2016 (unaudited)

Forward Currency Purchase Contracts open at March 31, 2016 (concluded):

Currency		Counterparty		Settlement Date		Quantity		Cost on Origination Date^			Unrealized Appreciation		Unrealized Depreciation
RUB		CIT		04/28/16		52,640,920		659,000		$	118,927	$	—
RUB		JPM		06/14/16		30,612,841		427,614			19,708		—
THB		CIT		05/23/16		12,864,900		370,000			—		4,731
THB		CIT		09/12/16		6,552,700		185,000			739		—
THB		CIT		09/12/16		12,198,240		344,000			1,764		—
THB		SCB		09/12/16		25,521,310		718,000			5,412		—
TRY		JPM		04/04/16		3,021,194		932,999	EUR		9,589		—
TRY		JPM		05/02/16		3,156,764		971,999	EUR		3,543		—
UGX		BRC		06/06/16		1,324,800,000		384,000			—		785
UYU		CIT		04/14/16		8,796,600		270,000			6,032		—
UYU		HSB		04/11/16		11,168,340		345,000			5,853		—
UYU		HSB		04/14/16		5,787,900		177,000			4,621		—
UYU		JPM		05/17/16		9,136,400		280,000			3,027		—
ZAR		BRC		05/23/16		6,298,830		410,000			12,546		—
ZAR		CIT		04/18/16		3,972,625		247,000			21,342		—
ZAR		JPM		04/18/16		5,164,656		336,000			12,861		—
ZAR		JPM		04/18/16		5,917,566		347,999	EUR		3,560		—
ZAR		JPM		04/18/16		5,928,946		382,000			18,487		—
ZMW		BRC		04/25/16		2,596,653		225,894			6,866		—
ZMW		BRC		04/25/16		4,494,000		388,754			14,082		—
Total Forward Currency Purchase Contracts										$	673,963	$	156,698

 

Forward Currency Sale Contracts open at March 31, 2016:

Currency		Counterparty		Settlement Date		Quantity		Cost on Origination Date^			Unrealized Appreciation		Unrealized Depreciation
BRL		CIT		09/21/16		1,506,843		351,000		$	—	$	48,286
BRL		UBS		01/20/17		4,006,090		869,000			—		158,885
CNH		SCB		04/14/16		4,673,978		706,146			—		16,678
DOP		CIT		04/04/16		43,045,000		951,271			14,852		—
EGP		BNP		04/11/16		510,300		63,000			5,849		—
EGP		BNP		04/11/16		861,600		106,370			9,875		—
EGP		BNP		05/09/16		1,568,930		187,000			14,859		—
EGP		BNP		05/09/16		2,584,750		309,551			25,955		—
EUR		JPM		06/30/16		1,172,288		1,311,510			—		26,044
HUF		JPM		04/13/16		104,300,520		376,000			—		2,029
HUF		JPM		04/13/16		230,457,266		786,396			—		48,878
JPY		CIT		04/07/16		40,932,454		361,000			—		2,740
JPY		SCB		04/19/16		118,177,760		1,005,768			—		44,779
KRW		CIT		04/04/16		850,468,000		744,718			1,042		—
KZT		CIT		04/04/16		59,415,000		170,000			—		2,170
KZT		CIT		06/06/16		128,992,000		339,453			—		26,903
MXN		JPM		05/23/16		8,414,425		478,000			—		6,875
RON		JPM		06/29/16		4,913,974		1,232,515			—		19,935
RUB		CIT		04/28/16		3,062,700		41,000			—		4,261
RUB		JPM		04/28/16		2,751,600		40,000			—		663
UGX		CIT		06/06/16		754,943,000		217,000			—		1,376
ZAR		CIT		04/18/16		5,192,633		339,000			—		11,750

Lazard World Dividend & Income Fund, Inc.

Portfolio of Investments (concluded)

March 31, 2016 (unaudited)

Forward Currency Sale Contracts open at March 31, 2016 (concluded):

Currency		Counterparty		Settlement Date		Quantity		Cost on Origination Date^			Unrealized Appreciation		Unrealized Depreciation
ZAR		CIT		04/18/16		17,146,104		1,072,000		$	—	$	86,180
ZAR		JPM		04/18/16		2,476,065		158,000			—		9,253
ZAR		JPM		04/18/16		6,379,737		398,336			—		32,601
Total Forward Currency Sale Contracts											72,432		550,286
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts										$	746,395	$	706,984

 

^ In USD unless otherwise indicated.

Currency Abbreviations:
BRL	— Brazilian Real
CLP	— Chilean Peso
CNH	— Yuan Renminbi
CNY	— Chinese Renminbi
COP	— Colombian Peso
DOP	— Dominican Republic Peso
EGP	— Egyptian Pound
EUR	— Euro
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
PHP	— Philippine Peso
PLN	— Polish Zloty
RON	— New Romanian Leu
RUB	— Russian Ruble
THB	— Thai Baht
TRY	— New Turkish Lira
UGX	— Ugandan Shilling
UYU	— Uruguayan Peso
ZAR	— South African Rand
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.

Notes to Portfolio of Investments

March 31, 2016 (unaudited)

 

(a) Security valued using Level 2 inputs, based on reference to a similar security which was trading on an active market, under accounting principles generally accepted in the United States of America hierarchy.

(b) Principal amount denominated in respective country’s currency.

(c) For federal income tax purposes, the aggregate cost was $91,628,652, aggregate gross unrealized appreciation was $2,524,635, aggregate gross unrealized depreciation was $11,494,149 and the net unrealized depreciation was $8,969,514.

(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
NTN-F	- Brazil Sovereign “Nota do Tesouro Nacional” Series F
NVDR	- Non-Voting Depository Receipt
PJSC	- Public Joint Stock Company
REIT	- Real Estate Investment Trust

 

Portfolio holdings by industry* (as a percentage of net assets):

Banks		14.2	%
Beverages		0.8
Capital Markets		2.6
Commercial Services & Suppliers		0.9
Communications Equipment		3.8
Consumer Finance		1.1
Containers & Packaging		1.8
Diversified Telecommunications Services		5.8
Electrical Equipment		3.2
Electronic Equipment, Instruments & Components		1.1
Gas Utilities		1.8
Health Care Providers & Services		1.4
Hotels, Restaurants & Leisure		1.2
Household Products		3.2
Independent Power Producers & Energy Traders		1.6
Insurance		3.5
Media		7.6
Multi-Utilities		1.0
Oil, Gas & Consumable Fuels		6.9
Personal Products		1.3
Pharmaceuticals		3.7
Professional Services		0.8
Real Estate Investment Trusts (REITs)		10.1
Real Estate Management & Development		0.7
Semiconductors & Semiconductor Equipment		7.5
Technology Hardware, Storage & Peripherals		2.1
Textiles, Apparel & Luxury Goods		0.8
Transportation Infrastructure		0.8
Wireless Telecommunication Services		4.5
Subtotal		95.8
Foreign Government Obligations		11.8
Short-Term Investment		2.5
Total Investments		110.1	%

 

*	Industry classifications may be different than those used for compliance monitoring purposes.

 

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to notes to the financial statements.

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 27, 2016

 

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 27, 2016

 

By:	/s/ Christopher Snively
	Christopher Snively
	Chief Financial Officer

 

Date: May 27, 2016

Exhibit 99.Cert

 

Rule 30a-2(a) CERTIFICATIONS

 

I, Charles L. Carroll, certify that:

 

1. I have reviewed this report on Form N-Q of Lazard World Dividend & Income Fund, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the Registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

5. The Registrant’s other certifying officer(s) and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

 

	By:	/s/ Charles L. Carroll
		Charles L. Carroll
		Chief Executive Officer
	Date:	May 27, 2016

Rule 30a-2(a) CERTIFICATIONS

 

I, Christopher Snively, certify that:

 

1. I have reviewed this report on Form N-Q of Lazard World Dividend & Income Fund, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the Registrant as of the end of the fiscal quarter for which the report is filed;

 

4. The Registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the Registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

 

(d) Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

5. The Registrant’s other certifying officer(s) and I have disclosed to the Registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize, and report financial information; and

 

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

 

	By:	/s/ Christopher Snively
		Christopher Snively
		Chief Financial Officer
	Date:	May 27, 2016

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