LAZARD ASSET MANAGEMENT
Lazard World
Dividend & Income
Fund, Inc.
Third Quarter Report
S E P T E M B E R 3 0 , 2 0 1 0
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Lazard World Dividend & Income Fund, Inc. |
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Investment Overview |
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Dear Stockholders,
We are pleased to present this report for Lazard World Dividend & Income Fund, Inc. (“LOR” or the “Fund”), for the quarter ended September 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 September 30, 2010, the Fund’s third quarter, and year-to-date, net asset value (“NAV”) performance was significantly ahead of its benchmark, the Morgan Stanley Capital International (MSCI®) All Country World Index (ACWI®) (the “Index”). We are also pleased with LOR‘s favorable NAV performance since inception. We believe that LOR’s investment thesis remains sound and 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 September 30, 2010)
For the third quarter of 2010, the Fund’s NAV increased by 18.2%, outperforming the Index gain of 14.3%. Similarly, the year-to-date NAV gain of 7.3% is ahead of the Index gain of 3.6%. The Fund’s longer-term NAV performance is similarly favorable, and the since-inception annualized NAV return of 5.4% is comfortably ahead of the Index return of 3.7% for the same period. Shares of LOR ended the third quarter of 2010 with a market price of $12.85, representing a 3.5% discount to the Fund’s NAV of $13.31.
The Fund’s net assets were $91.5 million as of September 30, 2010, with total leveraged assets of $121.8 million, representing a 24.9% leverage rate. This leverage rate was a decrease from the 27.7% level at the end of the second quarter.
During the third quarter, the Fund’s world equity portfolio benefited from an overweight exposure to the telecom services sector, and from stock selection within the energy, financials, consumer staples, industrials, and materials sectors. Conversely, performance was hurt by an underweight exposure to the materials sector, and from stock selection in the retailing industry within the consumer discretionary sector. The smaller, short-duration1 emerging market currency and debt portion of the Fund, which rebounded in September, has added value for the year-to-date, and remains a positive contributor to performance for the Fund since inception.
As of September 30, 2010, 74.3% of the Fund’s total leveraged assets consisted of world equities and 24.9% consisted of emerging market currency and debt instruments, while the remaining 0.8% consisted of cash and other net assets.
Declaration of Distributions
Pursuant to LOR’s Level Distribution Policy, the Fund declares, monthly, a distribution equal to 6.5% (on an annualized basis) of the Fund’s NAV on the last business day of the previous year. The current distribution rate per share of $0.07063 is based on the Fund’s NAV of $13.04 on December 31, 2009 and is equal to, on an annualized basis, 6.6% of the Fund’s $12.85 market price as of the close of trading on the NYSE on September 30, 2010. It was estimated that $0.1462 of the $0.6357 distributed per share as of September 30, 2010 may represent a return of capital.
Additional Information
Please note that, available on www.LazardNet.com, are frequent updates on the Fund’s performance, press releases, distribution information, and a monthly fact sheet that provides information about the Fund’s 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.
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Lazard World Dividend & Income Fund, Inc. |
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Investment Overview (continued) |
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Message from the Portfolio Managers
World Equity Portfolio
(74.3% of total
leveraged assets)
The Fund’s world equity portfolio is typically invested in 60 to 90 securities, consisting primarily of the highest 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, a global manufacturer and marketer of paper based products.
As of September 30, 2010, 35.2% of the Fund’s world equity portfolio investments were based in North America, 24.0% were based in Continental Europe (not including the United Kingdom), 18.2% were based in Asia, 9.2% were based in the United Kingdom, 6.7% were based in Latin America, and 6.7% were based in Africa and the Middle East. The world equity portfolio is similarly diversified across a number of industry sectors. The top two sectors, by weight, at September 30, 2010, were financials (25.6%), which includes banks, insurance companies, and financial services companies, and telecommunication services (13.8%). Other sectors in the portfolio include consumer staples, consumer discretionary, energy, health care, industrials, information technology, materials, and utilities. The average dividend yield on the securities held in the world equity portfolio was approximately 5.3% as of September 30, 2010.
World Equity Markets Review
Global stock markets
rebounded strongly during the third quarter. The Index returned double digits
on a U.S. dollar basis, which brought the year-to-date total return into
positive territory. This was largely driven by a series of very strong
quarterly earnings results. The Index performed particularly well in September,
partly fueled by a calmer market environment, as fears of a sovereign default
in Europe and a double-dip recession lessened. The market also benefited from cash-rich
companies—many of which are in the information technology sector—engaging in
merger activities, instituting and raising dividends, and implementing share
buybacks.
On a more cautious note, concerns about Ireland’s economy and its banking system increased as the country’s second quarter GDP declined by 1.2% versus the first three months of the year. The U.S. economy remained fragile, as the unemployment rate continued to stagnate and home sales remained weak. The U.S. Federal Reserve announced, late in September, that it was prepared to provide additional support to the economy, if needed, and noted that inflation was somewhat below the desired level. This boosted speculation that it would buy more Treasuries later this year.
Asian markets, with the exception of Japan, performed strongly in the third quarter as investors became more optimistic of a global recovery. Japanese stocks were hurt by worries about the rising yen, which could endanger the recovery of its export-led economy. In response to the yen’s increase, the government intervened in the currency markets for the first time in six years, attempting to depreciate the currency. Emerging markets stocks continued to be strong.
Each sector in the Index rose during the third quarter. Telecom services performed well as the market continued to invest in smartphone adoption and looked for dividend yield. More cyclical sectors, such as materials and consumer discretionary, also performed well. Sectors that experienced the lowest returns included traditionally defensive sectors such as health care and utilities, while information technology also experienced lower returns due to concerns over the strength of IT spending going forward.
In currency markets, the U.S. dollar weakened against most other major currencies, including the euro and Japanese yen, as it was weighed down by the prospect
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Lazard World Dividend & Income Fund, Inc. |
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Investment Overview (continued) |
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of additional asset purchases by the U.S. Federal Reserve. In contrast, the euro strengthened against most other currencies this quarter, as parts of Northern Europe exhibited economic strength.
What Helped and What Hurt LOR
An overweight
position, and stock selection, in the telecom services sector both contributed
to returns. Verizon, one of the top stock contributors, rose after reporting
strong earnings driven by share growth in wireless despite a launch of a
competitor’s product, and improved margins.
Within financials, the outperformance was broad-based, led by Banco do Brasil, Prudential, Banco Santander, and Sampo Oyj. The results of the European financial stress tests and the delay in implementing Basel III were also factors that helped lift financial stocks. At the stock level, Prudential, for example, rose after reporting impressive organic growth in the annuity, asset management, and international insurance businesses.
Stock selection in the retailing industry within the consumer discretionary sector detracted from performance during the quarter. Retail clothing line Esprit Holdings declined, as it was hit by concerns over European consumer weakness. Mattel, the world’s largest toy maker, also failed to perform as well as the rest of the consumer discretionary sector. Investors were disappointed by its second-quarter earning results, in which legal expenses and severance charges increased more than expected.
Emerging Market Currency and Debt Portfolio
(24.9% 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 September 30, 2010, this portfolio consisted of forward currency contracts (79.5%) and sovereign debt obligations (20.5%). The average duration of the emerging market currency and debt portfolio remained at approximately 4 months during the quarter, with an average yield of 5.1%2 as of September 30, 2010.
Emerging Market Currency and Debt Market Review
Emerging
markets’ economic trends continued to outperform during the third quarter, and
the record pace of inflows prompted policymakers to take action. While the
tightening cycle, interrupted by the risk aversion bout in the second quarter,
resumed for countries like India, Chile, and others, emerging markets also had to
deal increasingly with large capital inflows generated by their attractive
yields and growth prospects. The flow of funds out of developed markets into
emerging markets was further exacerbated by headlines of further quantitative
easing by the Fed.
Global policy action appeared increasingly uncoordinated and fraught with tension, as the United States increased pressure on China to allow the renminbi to appreciate faster, and the Bank of Japan, after a six-year gap, unilaterally intervened (unsuccessfully) to weaken the yen. With intervention in the currency market proceeding at a frenetic pace, the Brazilian finance minister summed up the situation towards the end of the quarter by talking about a “currency war.”
What Helped and What Hurt LOR
Exposure to emerging
markets countries characterized by strong, domestic demand-oriented growth,
including Poland, Brazil, and Turkey, helped performance. Similarly, the Fund,
through exposure to India and the Philippines, benefited from this theme. In
the Philippines, resilient inflows from its overseas work-force continue to
support a robust domestic consumption dynamic, impressive economic growth, and
a favorable balance of payments outlook. The record emerging markets fund flows
since the beginning of the year were directed toward emerging market countries
with index representation and deep, liquid capital markets. The highest
yielding ones were amongst the biggest beneficiaries of the rotation of global
investment flows into emerging markets, most notably Brazil, South Africa,
Turkey, and Indonesia. Reduced exposure to Malaysia and Indonesia and a lack of
exposure to Taiwan also helped performance. Mexico’s
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Lazard World Dividend & Income Fund, Inc. |
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Investment Overview (continued) |
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inclusion in the Citibank World Government Bond Index (WGBI), coupled with its central bank’s less interventionist foreign currency exchange stance buoyed the peso, which aided performance. And in South Korea, the current account surplus, foreign inflows, improving economic data, as well as correlated appreciation with the Chinese renminbi’s increased flexibility, generated won “catch-up” gains. Finally, exposure to frontier and less liquid markets in Zambia, Ghana, and Romania were noteworthy contributors during the third quarter.
Russian non-deliverable currency forward exposure hurt performance during the third quarter, owing to ruble depreciation on the back of September’s rapid rise in U.S. dollar demand locally. We had previously reduced exposure to Russia into second quarter’s strength, but took the opportunity offered by the weakness in September to increase our position, given the hefty current account surplus, incipient privatizations, and impressive central bank reserve coverage. A lack of exposure to solid gains realized in Thailand, South Africa, Colombia, and Singapore resulted in missed upsides in those markets.
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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. |
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2 |
The quoted yield does not account for the implicit cost of borrowing on the forward currency contracts, which would reduce the yield shown. |
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All
returns reflect reinvestment of all dividends and distributions. Past
performance is not indicative, or a guarantee, of future results. |
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The views of the Fund’s Investment Manager and the securities described in this report are as of September 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 Fund’s 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. |
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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. |
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Lazard World Dividend & Income Fund, Inc. |
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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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Average Annual Total Returns* |
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Periods Ended September 30, 2010 |
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(unaudited) |
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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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30.66 |
% |
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6.81 |
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4.71 |
% |
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Net Asset Value |
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13.94 |
% |
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4.29 |
% |
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5.41 |
% |
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MSCI ACWI Index |
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8.42 |
% |
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2.39 |
% |
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3.74 |
% |
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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 investor’s shares in the Fund, when sold, may be worth more or less than their original cost. The returns do not reflect the deduction of taxes that a stockholder would pay on the Fund’s distributions or on the sale of Fund shares. |
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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 Fund’s inception date was June 28, 2005. |
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5
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Lazard World Dividend & Income Fund, Inc. |
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Investment Overview (concluded) |
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Ten Largest Equity Holdings |
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September 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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$3,676,530 |
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4.0 |
% |
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Royal Dutch Shell PLC, A Shares |
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3,085,553 |
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3.4 |
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Vivendi |
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2,423,905 |
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2.6 |
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Philippine Long Distance Telephone Co. Sponsored ADR |
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2,412,358 |
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2.6 |
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Total SA |
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2,398,306 |
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2.6 |
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Reynolds American, Inc. |
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2,375,600 |
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2.6 |
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Altria Group, Inc. |
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2,315,528 |
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2.5 |
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Sampo Oyj, A Shares |
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2,266,424 |
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2.5 |
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Redecard SA |
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2,263,519 |
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2.5 |
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Taiwan Semiconductor Manufacturing Co., Ltd. |
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2,227,626 |
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2.4 |
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6
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Lazard World Dividend & Income Fund, Inc. |
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Portfolio of Investments |
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September 30, 2010 (unaudited) |
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Description |
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Shares |
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Value |
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Common Stocks—96.7% |
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Australia—3.8% |
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National Australia Bank, Ltd. |
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26,700 |
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$ |
653,946 |
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TABCORP Holdings, Ltd. |
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144,277 |
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976,156 |
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Telstra Corp., Ltd. |
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315,269 |
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798,375 |
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Transurban Group |
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218,260 |
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1,048,467 |
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Total Australia |
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3,476,944 |
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Brazil—6.6% |
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Banco do Brasil SA |
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63,117 |
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1,198,552 |
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Cielo SA (b) |
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169,200 |
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1,473,000 |
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Redecard SA (b) |
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145,900 |
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2,263,519 |
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Souza Cruz SA |
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22,480 |
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1,123,469 |
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Total Brazil |
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6,058,540 |
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Canada—0.7% |
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Cenovus Energy, Inc. |
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22,500 |
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647,325 |
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China—1.5% |
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China
Construction Bank Corp. |
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1,074,000 |
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941,274 |
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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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418,665 |
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Total China |
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1,359,939 |
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Cyprus—0.8% |
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Bank of Cyprus Public Co., Ltd. |
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149,300 |
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753,073 |
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Egypt—1.2% |
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Orascom Construction Industries |
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25,310 |
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1,110,608 |
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Finland—2.5% |
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Sampo Oyj, A Shares |
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83,923 |
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2,266,424 |
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France—5.9% |
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AXA SA |
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32,530 |
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568,744 |
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Total SA |
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46,535 |
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2,398,306 |
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Vivendi |
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88,680 |
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2,423,905 |
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Total France |
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5,390,955 |
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Germany—1.8% |
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Allianz SE |
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7,315 |
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826,694 |
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E.ON AG |
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28,200 |
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831,536 |
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Total Germany |
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1,658,230 |
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Greece—0.6% |
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OPAP SA |
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32,032 |
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506,545 |
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Hong Kong—1.2% |
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Pacific Basin Shipping, Ltd. |
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1,579,000 |
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1,139,653 |
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Israel—2.8% |
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Cellcom Israel, Ltd. |
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30,200 |
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917,174 |
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Israel Chemicals, Ltd. |
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118,680 |
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1,674,110 |
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Total Israel |
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2,591,284 |
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Italy—2.4% |
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Atlantia SpA |
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36,301 |
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752,207 |
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Eni SpA |
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66,712 |
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1,439,662 |
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Total Italy |
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2,191,869 |
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Japan—2.1% |
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Daito Trust Construction Co., Ltd. |
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7,600 |
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454,289 |
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Mizuho Financial Group, Inc. |
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213,100 |
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311,430 |
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Nintendo Co., Ltd. |
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4,700 |
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1,174,437 |
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Total Japan |
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1,940,156 |
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New Zealand—1.0% |
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Telecom Corp. of New Zealand, Ltd. |
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610,853 |
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905,329 |
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Norway—1.1% |
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Orkla ASA |
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106,360 |
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980,201 |
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Philippines—2.6% |
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Philippine
Long Distance Telephone |
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40,300 |
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2,412,358 |
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Russia—1.5% |
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Mobile TeleSystems Sponsored ADR |
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63,100 |
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1,339,613 |
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Singapore—1.0% |
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DBS Group Holdings, Ltd. |
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82,000 |
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877,926 |
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South Africa—1.8% |
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|
Kumba Iron Ore, Ltd. (b) |
|
|
31,355 |
|
|
1,632,606 |
|
|
|
|
|
|
|
|
||
|
Spain—3.0% |
|
|
|
|
|
|
|
|
Banco Santander SA |
|
|
152,300 |
|
|
1,934,424 |
|
|
Bolsas y Mercados Espanoles |
|
|
30,430 |
|
|
813,495 |
|
|
|
|
|
|
|
|
||
|
Total Spain |
|
|
|
|
|
2,747,919 |
|
|
|
|
|
|
|
|
||
See Notes to Portfolio of Investments.
7
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2010 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
Shares |
|
Value |
|
||
|
|
|||||||
|
Switzerland—3.3% |
|
|
|
|
|
|
|
|
Credit Suisse Group AG |
|
|
23,300 |
|
$ |
995,878 |
|
|
Zurich Financial Services AG (b) |
|
|
8,471 |
|
|
1,985,317 |
|
|
|
|
|
|
|
|
||
|
Total Switzerland |
|
|
|
|
|
2,981,195 |
|
|
|
|
|
|
|
|
||
|
Taiwan—4.8% |
|
|
|
|
|
|
|
|
HTC Corp. |
|
|
41,000 |
|
|
930,461 |
|
|
MediaTek, Inc. |
|
|
49,000 |
|
|
688,539 |
|
|
Siliconware Precision Industries Co. |
|
|
508,000 |
|
|
533,342 |
|
|
Taiwan Semiconductor Manufacturing |
|
|
|
|
|
|
|
|
Co., Ltd. (b) |
|
|
1,122,490 |
|
|
2,227,626 |
|
|
|
|
|
|
|
|
||
|
Total Taiwan |
|
|
|
|
|
4,379,968 |
|
|
|
|
|
|
|
|
||
|
Turkey—1.7% |
|
|
|
|
|
|
|
|
Ford Otomotiv Sanayi AS |
|
|
123,795 |
|
|
1,061,186 |
|
|
Turkcell Iletisim Hizmetleri AS ADR |
|
|
32,100 |
|
|
537,996 |
|
|
|
|
|
|
|
|
||
|
Total Turkey |
|
|
|
|
|
1,599,182 |
|
|
|
|
|
|
|
|
||
|
United Kingdom—9.1% |
|
|
|
|
|
|
|
|
BAE Systems PLC |
|
|
138,000 |
|
|
742,052 |
|
|
British American Tobacco PLC |
|
|
33,600 |
|
|
1,253,314 |
|
|
Man Group PLC (b) |
|
|
414,650 |
|
|
1,427,159 |
|
|
Prudential PLC |
|
|
81,683 |
|
|
816,730 |
|
|
Royal Dutch Shell PLC, A Shares (b) |
|
|
102,000 |
|
|
3,085,553 |
|
|
Vodafone Group PLC (b) |
|
|
404,250 |
|
|
997,642 |
|
|
|
|
|
|
|
|
||
|
Total United Kingdom |
|
|
|
|
|
8,322,450 |
|
|
|
|
|
|
|
|
||
|
United States—31.9% |
|
|
|
|
|
|
|
|
Altria Group, Inc. (b) |
|
|
96,400 |
|
|
2,315,528 |
|
|
American Electric Power Co., Inc. |
|
|
28,000 |
|
|
1,014,440 |
|
|
Analog Devices, Inc. (b) |
|
|
15,300 |
|
|
480,114 |
|
|
AT&T, Inc. (b) |
|
|
128,550 |
|
|
3,676,530 |
|
|
Caterpillar, Inc. |
|
|
8,410 |
|
|
661,699 |
|
|
ConocoPhillips (b) |
|
|
16,200 |
|
|
930,366 |
|
|
Darden Restaurants, Inc. (b) |
|
|
31,700 |
|
|
1,356,126 |
|
|
Emerson Electric Co. |
|
|
12,000 |
|
|
631,920 |
|
|
Genuine Parts Co. (b) |
|
|
25,700 |
|
|
1,145,963 |
|
|
Intel Corp. |
|
|
38,200 |
|
|
734,586 |
|
|
Kimberly-Clark Corp. |
|
|
9,300 |
|
|
604,965 |
|
|
Mattel, Inc. (b) |
|
|
40,500 |
|
|
950,130 |
|
|
McDonald’s Corp. (b) |
|
|
14,600 |
|
|
1,087,846 |
|
|
Merck & Co., Inc. (b) |
|
|
36,000 |
|
|
1,325,160 |
|
|
Nucor Corp. |
|
|
9,900 |
|
|
378,180 |
|
|
NYSE Euronext (b) |
|
|
44,400 |
|
|
1,268,508 |
|
|
Pfizer, Inc. (b) |
|
|
101,100 |
|
|
1,735,887 |
|
|
Public Storage REIT |
|
|
4,400 |
|
|
426,976 |
|
|
Reynolds American, Inc. (b) |
|
|
40,000 |
|
|
2,375,600 |
|
|
Southern Copper Corp. |
|
|
27,400 |
|
|
962,288 |
|
|
Spectra Energy Corp. |
|
|
27,700 |
|
|
624,635 |
|
|
Sysco Corp. |
|
|
14,300 |
|
|
407,836 |
|
|
The Macerich Co. REIT |
|
|
30,900 |
|
|
1,327,155 |
|
|
UDR, Inc. REIT |
|
|
32,100 |
|
|
677,952 |
|
|
United Parcel Service, Inc., Class B |
|
|
9,300 |
|
|
620,217 |
|
|
Verizon Communications, Inc. (b) |
|
|
28,300 |
|
|
922,297 |
|
|
Wal-Mart Stores, Inc. |
|
|
10,900 |
|
|
583,368 |
|
|
|
|
|
|
|
|
||
|
Total United States |
|
|
|
|
|
29,226,272 |
|
|
|
|
|
|
|
|
||
|
Total Common Stocks |
|
|
|
|
|
|
|
|
(Identified cost $83,743,894) |
|
|
|
|
|
88,496,564 |
|
|
|
|
|
|
|
|
||
|
Limited Partnership Units—1.4% |
|
|
|
|
|
|
|
|
United States—1.4% |
|
|
|
|
|
|
|
|
Energy Transfer Equity LP (b) |
|
|
10,600 |
|
|
393,472 |
|
|
Enterprise GP Holdings LP (b) |
|
|
7,800 |
|
|
458,016 |
|
|
Enterprise Products Partners LP |
|
|
10,400 |
|
|
412,568 |
|
|
|
|
|
|
|
|
||
|
Total United States |
|
|
|
|
|
|
|
|
(Identified cost $916,251) |
|
|
|
|
|
1,264,056 |
|
|
|
|
|
|
|
|
||
|
Preferred Stock—0.7% |
|
|
|
|
|
|
|
|
United States—0.7% |
|
|
|
|
|
|
|
|
Bank of America Corp. |
|
|
|
|
|
|
|
|
(Identified cost $625,521) (b) |
|
|
695 |
|
|
682,837 |
|
|
|
|
|
|
|
|
||
|
Right—0.1% |
|
|
|
|
|
|
|
|
Cyprus—0.1% |
|
|
|
|
|
|
|
|
Bank of Cyprus Public Co., Ltd., |
|
|
|
|
|
|
|
|
expiring 10/21/10 |
|
|
|
|
|
|
|
|
(Identified cost $0) |
|
|
149,300 |
|
|
91,590 |
|
|
|
|
|
|
|
|
||
See Notes to Portfolio of Investments.
8
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2010 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
Principal |
|
Value |
|
||
|
|
|||||||
|
Foreign Government |
|
|
|
|
|
|
|
|
Obligations—9.4% |
|
|
|
|
|
|
|
|
Brazil—3.6% |
|
|
|
|
|
|
|
|
Brazil NTN-F: |
|
|
|
|
|
|
|
|
10.00%, 01/01/12 |
|
|
3,900 |
|
$ |
2,321,685 |
|
|
10.00%, 01/01/13 |
|
|
1,648 |
|
|
938,908 |
|
|
|
|
|
|
|
|
||
|
Total Brazil |
|
|
|
|
|
3,260,593 |
|
|
|
|
|
|
|
|
||
|
Egypt—3.3% |
|
|
|
|
|
|
|
|
Egypt Treasury Bills: |
|
|
|
|
|
|
|
|
0.00%, 10/12/10 |
|
|
2,725 |
|
|
477,705 |
|
|
0.00%, 11/09/10 |
|
|
1,125 |
|
|
195,821 |
|
|
0.00%, 11/16/10 |
|
|
625 |
|
|
108,594 |
|
|
0.00%, 11/30/10 |
|
|
900 |
|
|
155,812 |
|
|
0.00%, 12/21/10 |
|
|
3,525 |
|
|
606,946 |
|
|
0.00%, 01/11/11 |
|
|
1,025 |
|
|
175,512 |
|
|
0.00%, 02/01/11 |
|
|
2,450 |
|
|
417,120 |
|
|
0.00%, 02/08/11 |
|
|
650 |
|
|
110,451 |
|
|
0.00%, 03/29/11 |
|
|
4,800 |
|
|
804,382 |
|
|
|
|
|
|
|
|
||
|
Total Egypt |
|
|
|
|
|
3,052,343 |
|
|
|
|
|
|
|
|
||
|
Ghana—1.0% |
|
|
|
|
|
|
|
|
Ghana Government Bonds: |
|
|
|
|
|
|
|
|
14.00%, 03/07/11 |
|
|
560 |
|
|
396,048 |
|
|
16.00%, 05/02/11 |
|
|
390 |
|
|
278,774 |
|
|
13.67%, 06/15/12 |
|
|
190 |
|
|
135,098 |
|
|
15.00%, 12/10/12 |
|
|
170 |
|
|
124,810 |
|
|
|
|
|
|
|
|
||
|
Total Ghana |
|
|
|
|
|
934,730 |
|
|
|
|
|
|
|
|
||
|
Mexico—0.5% |
|
|
|
|
|
|
|
|
Mexican Bonos, |
|
|
|
|
|
|
|
|
8.00%, 12/17/15 |
|
|
5,500 |
|
|
481,012 |
|
|
|
|
|
|
|
|
||
|
Poland—0.5% |
|
|
|
|
|
|
|
|
Poland Government Bonds: |
|
|
|
|
|
|
|
|
4.75%, 04/25/12 |
|
|
933 |
|
|
322,234 |
|
|
3.00%, 08/24/16 |
|
|
260 |
|
|
89,159 |
|
|
|
|
|
|
|
|
||
|
Total Poland |
|
|
|
|
|
411,393 |
|
|
|
|
|
|
|
|
||
|
Turkey—0.5% |
|
|
|
|
|
|
|
|
Turkey Government Bond, |
|
|
|
|
|
|
|
|
10.00%, 02/15/12 |
|
|
639 |
|
|
494,159 |
|
|
|
|
|
|
|
|
||
|
Total Foreign Government |
|
|
|
|
|
|
|
|
Obligations |
|
|
|
|
|
|
|
|
(Identified cost $7,837,381) |
|
|
|
|
|
8,634,230 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Description |
|
Shares |
|
Value |
|
||
|
|
|||||||
|
Short-Term Investment—0.5% |
|
|
|
|
|
|
|
|
State Street Institutional |
|
|
|
|
|
|
|
|
Treasury Money Market Fund |
|
|
|
|
|
|
|
|
(Identified cost $440,892) |
|
|
440,892 |
|
|
440,892 |
|
|
|
|
|
|
|
|
||
|
Total Investments—108.8% |
|
|
|
|
|
|
|
|
(Identified cost $93,563,939) (a) |
|
|
|
|
$ |
99,610,169 |
|
|
Liabilities in Excess of Cash |
|
|
|
|
|
|
|
|
and Other Assets—(8.8)% |
|
|
|
|
|
(8,059,794 |
) |
|
|
|
|
|
|
|
||
|
Net Assets—100.0% |
|
|
|
|
$ |
91,550,375 |
|
|
|
|
|
|
|
|
||
See Notes to Portfolio of Investments.
9
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2010 (unaudited) |
|
|
Forward Currency Purchase Contracts open at September 30, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
||||||||||||
|
ARS |
|
10/14/10 |
|
|
890,400 |
|
$ |
224,000 |
|
$ |
224,271 |
|
$ |
271 |
|
$ |
— |
|
|
ARS |
|
10/15/10 |
|
|
890,400 |
|
|
224,000 |
|
|
224,219 |
|
|
219 |
|
|
— |
|
|
ARS |
|
11/15/10 |
|
|
884,756 |
|
|
220,500 |
|
|
221,218 |
|
|
718 |
|
|
— |
|
|
ARS |
|
11/22/10 |
|
|
934,563 |
|
|
233,000 |
|
|
233,302 |
|
|
302 |
|
|
— |
|
|
ARS |
|
12/10/10 |
|
|
857,964 |
|
|
213,000 |
|
|
213,253 |
|
|
253 |
|
|
— |
|
|
ARS |
|
12/16/10 |
|
|
948,930 |
|
|
235,000 |
|
|
235,448 |
|
|
448 |
|
|
— |
|
|
BRL |
|
10/04/10 |
|
|
1,678,212 |
|
|
984,577 |
|
|
991,851 |
|
|
7,274 |
|
|
— |
|
|
CLP |
|
10/18/10 |
|
|
114,485,000 |
|
|
231,564 |
|
|
236,589 |
|
|
5,025 |
|
|
— |
|
|
CLP |
|
11/16/10 |
|
|
114,485,000 |
|
|
231,400 |
|
|
236,313 |
|
|
4,913 |
|
|
— |
|
|
CNY |
|
03/17/11 |
|
|
7,825,873 |
|
|
1,177,000 |
|
|
1,173,834 |
|
|
— |
|
|
3,166 |
|
|
CNY |
|
05/27/11 |
|
|
434,165 |
|
|
63,689 |
|
|
65,253 |
|
|
1,564 |
|
|
— |
|
|
CNY |
|
07/29/11 |
|
|
3,368,736 |
|
|
504,000 |
|
|
507,358 |
|
|
3,358 |
|
|
— |
|
|
CNY |
|
07/29/11 |
|
|
2,526,930 |
|
|
378,000 |
|
|
380,575 |
|
|
2,575 |
|
|
— |
|
|
CNY |
|
07/29/11 |
|
|
274,577 |
|
|
41,000 |
|
|
41,353 |
|
|
353 |
|
|
— |
|
|
EUR |
|
10/01/10 |
|
|
702,051 |
|
|
865,745 |
|
|
957,071 |
|
|
91,326 |
|
|
— |
|
|
EUR |
|
10/01/10 |
|
|
99,000 |
|
|
124,673 |
|
|
134,962 |
|
|
10,289 |
|
|
— |
|
|
EUR |
|
10/01/10 |
|
|
54,000 |
|
|
68,120 |
|
|
73,616 |
|
|
5,496 |
|
|
— |
|
|
EUR |
|
10/04/10 |
|
|
96,265 |
|
|
131,200 |
|
|
131,234 |
|
|
34 |
|
|
— |
|
|
EUR |
|
10/19/10 |
|
|
184,938 |
|
|
231,774 |
|
|
252,089 |
|
|
20,315 |
|
|
— |
|
|
EUR |
|
12/09/10 |
|
|
1,796,000 |
|
|
2,666,342 |
|
|
2,447,156 |
|
|
— |
|
|
219,186 |
|
|
EUR |
|
01/03/11 |
|
|
251,695 |
|
|
342,000 |
|
|
342,885 |
|
|
885 |
|
|
— |
|
|
GHC |
|
10/12/10 |
|
|
176,000 |
|
|
119,160 |
|
|
123,039 |
|
|
3,879 |
|
|
— |
|
|
GHC |
|
10/18/10 |
|
|
269,000 |
|
|
186,741 |
|
|
187,697 |
|
|
956 |
|
|
— |
|
|
GHC |
|
10/29/10 |
|
|
313,000 |
|
|
218,118 |
|
|
217,641 |
|
|
— |
|
|
477 |
|
|
GHC |
|
11/03/10 |
|
|
406,000 |
|
|
278,750 |
|
|
281,897 |
|
|
3,147 |
|
|
— |
|
|
GHC |
|
10/11/11 |
|
|
159,796 |
|
|
73,639 |
|
|
99,973 |
|
|
26,334 |
|
|
— |
|
|
HUF |
|
12/09/10 |
|
|
129,665,510 |
|
|
659,748 |
|
|
634,355 |
|
|
— |
|
|
25,393 |
|
|
HUF |
|
12/09/10 |
|
|
372,226,690 |
|
|
1,646,490 |
|
|
1,821,023 |
|
|
174,533 |
|
|
— |
|
|
IDR |
|
11/08/10 |
|
|
3,610,000,000 |
|
|
380,000 |
|
|
402,128 |
|
|
22,128 |
|
|
— |
|
|
IDR |
|
11/08/10 |
|
|
2,015,846,000 |
|
|
219,114 |
|
|
224,551 |
|
|
5,437 |
|
|
— |
|
|
ILS |
|
10/01/10 |
|
|
6,027,000 |
|
|
1,577,336 |
|
|
1,654,678 |
|
|
77,342 |
|
|
— |
|
|
ILS |
|
10/07/10 |
|
|
1,400,429 |
|
|
369,000 |
|
|
384,457 |
|
|
15,457 |
|
|
— |
|
|
ILS |
|
10/07/10 |
|
|
2,148,326 |
|
|
583,000 |
|
|
589,775 |
|
|
6,775 |
|
|
— |
|
|
ILS |
|
10/27/10 |
|
|
1,436,666 |
|
|
385,000 |
|
|
394,248 |
|
|
9,248 |
|
|
— |
|
|
INR |
|
10/04/10 |
|
|
14,038,050 |
|
|
299,000 |
|
|
312,408 |
|
|
13,408 |
|
|
— |
|
|
INR |
|
10/06/10 |
|
|
19,142,900 |
|
|
406,000 |
|
|
425,858 |
|
|
19,858 |
|
|
— |
|
See Notes to Portfolio of Investments.
10
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2010 (unaudited) |
|
|
Forward Currency Purchase Contracts open at September 30, 2010 (continued):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
||||||||||||
|
INR |
|
10/25/10 |
|
|
13,262,210 |
|
$ |
289,000 |
|
$ |
294,017 |
|
$ |
5,017 |
|
$ |
— |
|
|
INR |
|
10/26/10 |
|
|
18,900,180 |
|
|
394,000 |
|
|
418,933 |
|
|
24,933 |
|
|
— |
|
|
INR |
|
10/28/10 |
|
|
24,382,160 |
|
|
538,000 |
|
|
540,248 |
|
|
2,248 |
|
|
— |
|
|
INR |
|
11/04/10 |
|
|
14,845,000 |
|
|
327,487 |
|
|
328,511 |
|
|
1,024 |
|
|
— |
|
|
INR |
|
11/12/10 |
|
|
19,059,400 |
|
|
409,000 |
|
|
421,205 |
|
|
12,205 |
|
|
— |
|
|
INR |
|
11/24/10 |
|
|
7,850,140 |
|
|
166,000 |
|
|
173,135 |
|
|
7,135 |
|
|
— |
|
|
INR |
|
01/12/11 |
|
|
16,892,480 |
|
|
352,000 |
|
|
369,639 |
|
|
17,639 |
|
|
— |
|
|
JPY |
|
10/21/10 |
|
|
36,927,024 |
|
|
437,000 |
|
|
442,410 |
|
|
5,410 |
|
|
— |
|
|
KES |
|
10/12/10 |
|
|
23,125,000 |
|
|
290,333 |
|
|
286,378 |
|
|
— |
|
|
3,955 |
|
|
KES |
|
10/12/10 |
|
|
10,890,000 |
|
|
134,287 |
|
|
134,861 |
|
|
574 |
|
|
— |
|
|
KES |
|
10/21/10 |
|
|
24,553,000 |
|
|
304,250 |
|
|
304,062 |
|
|
— |
|
|
188 |
|
|
KES |
|
10/29/10 |
|
|
13,094,000 |
|
|
161,874 |
|
|
162,155 |
|
|
281 |
|
|
— |
|
|
KRW |
|
10/04/10 |
|
|
495,187,500 |
|
|
417,000 |
|
|
434,280 |
|
|
17,280 |
|
|
— |
|
|
KRW |
|
10/08/10 |
|
|
315,955,800 |
|
|
257,000 |
|
|
277,050 |
|
|
20,050 |
|
|
— |
|
|
KRW |
|
10/25/10 |
|
|
643,356,000 |
|
|
540,000 |
|
|
563,755 |
|
|
23,755 |
|
|
— |
|
|
KRW |
|
11/19/10 |
|
|
1,215,007,200 |
|
|
1,058,000 |
|
|
1,063,557 |
|
|
5,557 |
|
|
— |
|
|
KRW |
|
11/19/10 |
|
|
483,700,500 |
|
|
423,000 |
|
|
423,407 |
|
|
407 |
|
|
— |
|
|
KRW |
|
11/30/10 |
|
|
314,087,400 |
|
|
261,000 |
|
|
274,804 |
|
|
13,804 |
|
|
— |
|
|
KZT |
|
10/01/10 |
|
|
29,707,800 |
|
|
201,000 |
|
|
201,136 |
|
|
136 |
|
|
— |
|
|
KZT |
|
10/18/10 |
|
|
23,919,300 |
|
|
162,000 |
|
|
161,939 |
|
|
— |
|
|
61 |
|
|
KZT |
|
11/02/10 |
|
|
37,958,900 |
|
|
257,000 |
|
|
256,980 |
|
|
— |
|
|
20 |
|
|
KZT |
|
11/02/10 |
|
|
39,354,700 |
|
|
266,000 |
|
|
266,429 |
|
|
429 |
|
|
— |
|
|
KZT |
|
12/10/10 |
|
|
11,411,400 |
|
|
77,000 |
|
|
77,247 |
|
|
247 |
|
|
— |
|
|
KZT |
|
12/10/10 |
|
|
22,792,000 |
|
|
154,000 |
|
|
154,285 |
|
|
285 |
|
|
— |
|
|
KZT |
|
12/10/10 |
|
|
11,407,550 |
|
|
77,000 |
|
|
77,221 |
|
|
221 |
|
|
— |
|
|
KZT |
|
12/15/10 |
|
|
9,768,000 |
|
|
66,000 |
|
|
66,121 |
|
|
121 |
|
|
— |
|
|
KZT |
|
12/15/10 |
|
|
9,768,000 |
|
|
66,000 |
|
|
66,121 |
|
|
121 |
|
|
— |
|
|
KZT |
|
12/20/10 |
|
|
8,282,400 |
|
|
56,000 |
|
|
56,064 |
|
|
64 |
|
|
— |
|
|
KZT |
|
12/20/10 |
|
|
33,869,100 |
|
|
229,000 |
|
|
229,263 |
|
|
263 |
|
|
— |
|
|
KZT |
|
12/20/10 |
|
|
9,909,300 |
|
|
67,000 |
|
|
67,077 |
|
|
77 |
|
|
— |
|
|
KZT |
|
01/28/11 |
|
|
25,284,000 |
|
|
171,475 |
|
|
171,124 |
|
|
— |
|
|
351 |
|
|
KZT |
|
01/31/11 |
|
|
22,792,000 |
|
|
154,627 |
|
|
154,256 |
|
|
— |
|
|
371 |
|
|
KZT |
|
01/31/11 |
|
|
10,064,000 |
|
|
68,277 |
|
|
68,113 |
|
|
— |
|
|
164 |
|
|
KZT |
|
02/07/11 |
|
|
23,110,400 |
|
|
157,000 |
|
|
156,407 |
|
|
— |
|
|
593 |
|
|
KZT |
|
02/10/11 |
|
|
23,110,400 |
|
|
157,000 |
|
|
156,405 |
|
|
— |
|
|
595 |
|
|
KZT |
|
03/29/11 |
|
|
21,135,400 |
|
|
143,388 |
|
|
143,010 |
|
|
— |
|
|
378 |
|
See Notes to Portfolio of Investments.
11
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2010 (unaudited) |
|
|
Forward Currency Purchase Contracts open at September 30, 2010 (continued):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
||||||||||||
|
KZT |
|
04/01/11 |
|
|
30,704,000 |
|
$ |
208,375 |
|
$ |
207,752 |
|
$ |
— |
|
$ |
623 |
|
|
MXN |
|
10/04/10 |
|
|
9,932,555 |
|
|
775,000 |
|
|
788,195 |
|
|
13,195 |
|
|
— |
|
|
MXN |
|
10/20/10 |
|
|
7,795,224 |
|
|
604,000 |
|
|
617,841 |
|
|
13,841 |
|
|
— |
|
|
MXN |
|
10/25/10 |
|
|
6,687,564 |
|
|
526,000 |
|
|
529,849 |
|
|
3,849 |
|
|
— |
|
|
MXN |
|
11/01/10 |
|
|
9,327,789 |
|
|
747,000 |
|
|
738,642 |
|
|
— |
|
|
8,358 |
|
|
MXN |
|
03/09/11 |
|
|
4,043,843 |
|
|
305,000 |
|
|
316,147 |
|
|
11,147 |
|
|
— |
|
|
MYR |
|
10/06/10 |
|
|
1,221,000 |
|
|
375,658 |
|
|
395,476 |
|
|
19,818 |
|
|
— |
|
|
MYR |
|
10/06/10 |
|
|
98,828 |
|
|
31,000 |
|
|
32,010 |
|
|
1,010 |
|
|
— |
|
|
MYR |
|
10/06/10 |
|
|
1,769,272 |
|
|
573,787 |
|
|
573,059 |
|
|
— |
|
|
728 |
|
|
MYR |
|
10/25/10 |
|
|
692,747 |
|
|
221,000 |
|
|
224,091 |
|
|
3,091 |
|
|
— |
|
|
MYR |
|
11/03/10 |
|
|
1,284,178 |
|
|
406,000 |
|
|
415,156 |
|
|
9,156 |
|
|
— |
|
|
PEN |
|
11/24/10 |
|
|
839,489 |
|
|
301,000 |
|
|
301,145 |
|
|
145 |
|
|
— |
|
|
PEN |
|
12/24/10 |
|
|
839,248 |
|
|
301,000 |
|
|
301,065 |
|
|
65 |
|
|
— |
|
|
PEN |
|
03/24/11 |
|
|
840,091 |
|
|
301,000 |
|
|
301,141 |
|
|
141 |
|
|
— |
|
|
PHP |
|
10/04/10 |
|
|
21,797,750 |
|
|
475,000 |
|
|
496,702 |
|
|
21,702 |
|
|
— |
|
|
PHP |
|
10/04/10 |
|
|
9,884,160 |
|
|
216,000 |
|
|
225,229 |
|
|
9,229 |
|
|
— |
|
|
PHP |
|
10/20/10 |
|
|
22,837,020 |
|
|
514,000 |
|
|
519,519 |
|
|
5,519 |
|
|
— |
|
|
PHP |
|
10/27/10 |
|
|
12,154,760 |
|
|
277,000 |
|
|
276,307 |
|
|
— |
|
|
693 |
|
|
PHP |
|
10/28/10 |
|
|
17,806,080 |
|
|
384,000 |
|
|
404,734 |
|
|
20,734 |
|
|
— |
|
|
PHP |
|
11/04/10 |
|
|
16,374,700 |
|
|
373,000 |
|
|
371,928 |
|
|
— |
|
|
1,072 |
|
|
PHP |
|
11/30/10 |
|
|
13,707,540 |
|
|
301,000 |
|
|
310,582 |
|
|
9,582 |
|
|
— |
|
|
PHP |
|
12/06/10 |
|
|
16,412,000 |
|
|
373,000 |
|
|
371,649 |
|
|
— |
|
|
1,351 |
|
|
PHP |
|
01/28/11 |
|
|
20,621,650 |
|
|
443,000 |
|
|
464,281 |
|
|
21,281 |
|
|
— |
|
|
PLN |
|
10/07/10 |
|
|
1,493,195 |
|
|
472,530 |
|
|
513,568 |
|
|
41,038 |
|
|
— |
|
|
PLN |
|
10/18/10 |
|
|
2,537,985 |
|
|
830,914 |
|
|
872,205 |
|
|
41,291 |
|
|
— |
|
|
PLN |
|
10/18/10 |
|
|
1,583,619 |
|
|
518,463 |
|
|
544,227 |
|
|
25,764 |
|
|
— |
|
|
PLN |
|
10/27/10 |
|
|
1,513,301 |
|
|
513,105 |
|
|
519,717 |
|
|
6,612 |
|
|
— |
|
|
RON |
|
10/13/10 |
|
|
1,463,000 |
|
|
434,195 |
|
|
466,940 |
|
|
32,745 |
|
|
— |
|
|
RON |
|
10/19/10 |
|
|
791,350 |
|
|
275,415 |
|
|
252,375 |
|
|
— |
|
|
23,040 |
|
|
RON |
|
10/21/10 |
|
|
1,493,000 |
|
|
459,682 |
|
|
476,020 |
|
|
16,338 |
|
|
— |
|
|
RSD |
|
10/04/10 |
|
|
10,233,000 |
|
|
123,210 |
|
|
130,787 |
|
|
7,577 |
|
|
— |
|
|
RSD |
|
10/12/10 |
|
|
18,412,600 |
|
|
231,367 |
|
|
234,810 |
|
|
3,443 |
|
|
— |
|
|
RSD |
|
10/18/10 |
|
|
10,392,900 |
|
|
128,339 |
|
|
132,318 |
|
|
3,979 |
|
|
— |
|
|
RSD |
|
10/18/10 |
|
|
10,383,100 |
|
|
128,202 |
|
|
132,193 |
|
|
3,991 |
|
|
— |
|
|
RSD |
|
10/19/10 |
|
|
11,209,500 |
|
|
137,170 |
|
|
142,675 |
|
|
5,505 |
|
|
— |
|
|
RSD |
|
10/21/10 |
|
|
12,792,000 |
|
|
158,779 |
|
|
162,727 |
|
|
3,948 |
|
|
— |
|
See Notes to Portfolio of Investments.
12
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2010 (unaudited) |
|
|
Forward Currency Purchase Contracts open at September 30, 2010 (continued):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
||||||||||||
|
RSD |
|
11/04/10 |
|
|
10,233,000 |
|
$ |
131,310 |
|
$ |
129,688 |
|
$ |
— |
|
$ |
1,622 |
|
|
RSD |
|
11/09/10 |
|
|
25,054,000 |
|
|
305,212 |
|
|
317,119 |
|
|
11,907 |
|
|
— |
|
|
RSD |
|
11/10/10 |
|
|
11,445,000 |
|
|
138,342 |
|
|
144,828 |
|
|
6,486 |
|
|
— |
|
|
RSD |
|
11/10/10 |
|
|
11,883,200 |
|
|
143,638 |
|
|
150,373 |
|
|
6,735 |
|
|
— |
|
|
RSD |
|
11/22/10 |
|
|
7,436,700 |
|
|
91,822 |
|
|
93,821 |
|
|
1,999 |
|
|
— |
|
|
RUB |
|
10/07/10 |
|
|
8,713,287 |
|
|
283,000 |
|
|
284,796 |
|
|
1,796 |
|
|
— |
|
|
RUB |
|
10/18/10 |
|
|
9,602,960 |
|
|
307,000 |
|
|
313,657 |
|
|
6,657 |
|
|
— |
|
|
RUB |
|
10/20/10 |
|
|
11,800,000 |
|
|
377,153 |
|
|
385,369 |
|
|
8,216 |
|
|
— |
|
|
RUB |
|
10/26/10 |
|
|
13,667,000 |
|
|
440,232 |
|
|
446,174 |
|
|
5,942 |
|
|
— |
|
|
RUB |
|
10/27/10 |
|
|
10,558,398 |
|
|
343,000 |
|
|
344,669 |
|
|
1,669 |
|
|
— |
|
|
RUB |
|
10/28/10 |
|
|
11,826,720 |
|
|
387,000 |
|
|
386,047 |
|
|
— |
|
|
953 |
|
|
RUB |
|
11/15/10 |
|
|
10,571,260 |
|
|
343,000 |
|
|
344,646 |
|
|
1,646 |
|
|
— |
|
|
TRY |
|
10/28/10 |
|
|
1,968,000 |
|
|
1,328,294 |
|
|
1,354,289 |
|
|
25,995 |
|
|
— |
|
|
TWD |
|
12/22/10 |
|
|
13,595,830 |
|
|
439,000 |
|
|
435,686 |
|
|
— |
|
|
3,314 |
|
|
TWD |
|
12/22/10 |
|
|
13,566,070 |
|
|
425,535 |
|
|
434,732 |
|
|
9,197 |
|
|
— |
|
|
TWD |
|
03/22/11 |
|
|
13,503,640 |
|
|
439,000 |
|
|
433,635 |
|
|
— |
|
|
5,365 |
|
|
UAH |
|
10/07/10 |
|
|
1,247,000 |
|
|
157,152 |
|
|
156,878 |
|
|
— |
|
|
274 |
|
|
UAH |
|
10/18/10 |
|
|
596,000 |
|
|
74,500 |
|
|
74,738 |
|
|
238 |
|
|
— |
|
|
UAH |
|
10/18/10 |
|
|
1,118,600 |
|
|
140,000 |
|
|
140,272 |
|
|
272 |
|
|
— |
|
|
UAH |
|
10/25/10 |
|
|
595,255 |
|
|
74,500 |
|
|
74,492 |
|
|
— |
|
|
8 |
|
|
UAH |
|
11/01/10 |
|
|
1,121,400 |
|
|
140,000 |
|
|
140,055 |
|
|
55 |
|
|
— |
|
|
UAH |
|
11/10/10 |
|
|
946,360 |
|
|
118,000 |
|
|
117,907 |
|
|
— |
|
|
93 |
|
|
UGX |
|
10/04/10 |
|
|
514,860,500 |
|
|
227,011 |
|
|
229,241 |
|
|
2,230 |
|
|
— |
|
|
UGX |
|
10/06/10 |
|
|
72,341,500 |
|
|
32,010 |
|
|
32,203 |
|
|
193 |
|
|
— |
|
|
UGX |
|
10/07/10 |
|
|
436,710,500 |
|
|
193,064 |
|
|
194,384 |
|
|
1,320 |
|
|
— |
|
|
UGX |
|
10/15/10 |
|
|
514,860,500 |
|
|
226,828 |
|
|
228,980 |
|
|
2,152 |
|
|
— |
|
|
UGX |
|
10/18/10 |
|
|
644,431,000 |
|
|
286,032 |
|
|
286,516 |
|
|
484 |
|
|
— |
|
|
UGX |
|
10/18/10 |
|
|
730,635,000 |
|
|
324,007 |
|
|
324,842 |
|
|
835 |
|
|
— |
|
|
UGX |
|
10/20/10 |
|
|
302,982,000 |
|
|
134,539 |
|
|
134,679 |
|
|
140 |
|
|
— |
|
|
UGX |
|
10/21/10 |
|
|
427,032,000 |
|
|
189,961 |
|
|
189,800 |
|
|
— |
|
|
161 |
|
|
UGX |
|
10/27/10 |
|
|
72,341,500 |
|
|
31,953 |
|
|
32,133 |
|
|
180 |
|
|
— |
|
|
UGX |
|
10/29/10 |
|
|
239,863,000 |
|
|
106,953 |
|
|
106,523 |
|
|
— |
|
|
430 |
|
|
UGX |
|
11/10/10 |
|
|
514,860,500 |
|
|
228,674 |
|
|
228,326 |
|
|
— |
|
|
348 |
|
|
UGX |
|
12/01/10 |
|
|
62,605,000 |
|
|
27,763 |
|
|
27,694 |
|
|
— |
|
|
69 |
|
|
UYU |
|
10/04/10 |
|
|
1,477,000 |
|
|
70,000 |
|
|
72,705 |
|
|
2,705 |
|
|
— |
|
|
UYU |
|
10/04/10 |
|
|
1,473,500 |
|
|
70,000 |
|
|
72,533 |
|
|
2,533 |
|
|
— |
|
See Notes to Portfolio of Investments.
13
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2010 (unaudited) |
|
|
Forward Currency Purchase Contracts open at September 30, 2010 (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
||||||||||||
|
UYU |
|
10/12/10 |
|
|
1,684,800 |
|
$ |
81,000 |
|
$ |
82,934 |
|
$ |
1,934 |
|
$ |
— |
|
|
UYU |
|
10/29/10 |
|
|
2,943,540 |
|
|
138,000 |
|
|
144,895 |
|
|
6,895 |
|
|
— |
|
|
UYU |
|
11/01/10 |
|
|
3,272,325 |
|
|
161,000 |
|
|
160,408 |
|
|
— |
|
|
592 |
|
|
UYU |
|
11/05/10 |
|
|
1,694,277 |
|
|
81,000 |
|
|
83,053 |
|
|
2,053 |
|
|
— |
|
|
UYU |
|
11/24/10 |
|
|
2,954,880 |
|
|
144,000 |
|
|
144,847 |
|
|
847 |
|
|
— |
|
|
UYU |
|
11/24/10 |
|
|
2,952,000 |
|
|
144,000 |
|
|
144,706 |
|
|
706 |
|
|
— |
|
|
UYU |
|
12/21/10 |
|
|
2,966,400 |
|
|
144,000 |
|
|
144,702 |
|
|
702 |
|
|
— |
|
|
ZMK |
|
10/04/10 |
|
|
324,292,500 |
|
|
66,128 |
|
|
66,911 |
|
|
783 |
|
|
— |
|
|
ZMK |
|
10/06/10 |
|
|
841,202,000 |
|
|
170,035 |
|
|
173,534 |
|
|
3,499 |
|
|
— |
|
|
ZMK |
|
10/13/10 |
|
|
1,418,957,000 |
|
|
289,288 |
|
|
292,547 |
|
|
3,259 |
|
|
— |
|
|
ZMK |
|
10/13/10 |
|
|
566,548,000 |
|
|
115,504 |
|
|
116,806 |
|
|
1,302 |
|
|
— |
|
|
ZMK |
|
10/26/10 |
|
|
431,219,000 |
|
|
88,269 |
|
|
88,807 |
|
|
538 |
|
|
— |
|
|
ZMK |
|
10/26/10 |
|
|
2,034,886,000 |
|
|
418,701 |
|
|
419,072 |
|
|
371 |
|
|
— |
|
|
ZMK |
|
11/04/10 |
|
|
324,556,000 |
|
|
66,815 |
|
|
66,774 |
|
|
— |
|
|
41 |
|
|
ZMK |
|
11/08/10 |
|
|
2,273,266,000 |
|
|
462,538 |
|
|
467,457 |
|
|
4,919 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Forward Currency Purchase Contracts |
|
|
|
$ |
50,869,632 |
|
$ |
51,744,128 |
|
$ |
1,178,529 |
|
$ |
304,033 |
|
|||
|
|
|
|
|
|
|
|
|
|||||||||||
See Notes to Portfolio of Investments.
14
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2010 (unaudited) |
|
|
Forward Currency Sale Contracts open at September 30, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
||||||||||||
|
BRL |
|
10/04/10 |
|
|
1,678,212 |
|
$ |
949,000 |
|
$ |
991,851 |
|
$ |
— |
|
$ |
42,851 |
|
|
BRL |
|
11/03/10 |
|
|
1,689,220 |
|
|
949,000 |
|
|
992,143 |
|
|
— |
|
|
43,143 |
|
|
BRL |
|
11/03/10 |
|
|
1,568,036 |
|
|
915,000 |
|
|
920,967 |
|
|
— |
|
|
5,967 |
|
|
EUR |
|
10/01/10 |
|
|
399,975 |
|
|
487,000 |
|
|
545,266 |
|
|
— |
|
|
58,266 |
|
|
EUR |
|
10/01/10 |
|
|
117,232 |
|
|
153,500 |
|
|
159,817 |
|
|
— |
|
|
6,317 |
|
|
EUR |
|
10/01/10 |
|
|
337,844 |
|
|
459,231 |
|
|
460,566 |
|
|
— |
|
|
1,335 |
|
|
EUR |
|
10/04/10 |
|
|
96,647 |
|
|
123,210 |
|
|
131,754 |
|
|
— |
|
|
8,544 |
|
|
EUR |
|
10/07/10 |
|
|
374,000 |
|
|
472,530 |
|
|
509,844 |
|
|
— |
|
|
37,314 |
|
|
EUR |
|
10/12/10 |
|
|
172,000 |
|
|
231,367 |
|
|
234,465 |
|
|
— |
|
|
3,098 |
|
|
EUR |
|
10/13/10 |
|
|
340,074 |
|
|
434,195 |
|
|
463,576 |
|
|
— |
|
|
29,381 |
|
|
EUR |
|
10/18/10 |
|
|
401,302 |
|
|
518,463 |
|
|
547,019 |
|
|
— |
|
|
28,556 |
|
|
EUR |
|
10/18/10 |
|
|
643,000 |
|
|
830,914 |
|
|
876,480 |
|
|
— |
|
|
45,566 |
|
|
EUR |
|
10/18/10 |
|
|
98,000 |
|
|
128,339 |
|
|
133,585 |
|
|
— |
|
|
5,246 |
|
|
EUR |
|
10/18/10 |
|
|
98,000 |
|
|
128,202 |
|
|
133,585 |
|
|
— |
|
|
5,383 |
|
|
EUR |
|
10/19/10 |
|
|
170,000 |
|
|
275,415 |
|
|
231,727 |
|
|
43,688 |
|
|
— |
|
|
EUR |
|
10/19/10 |
|
|
106,000 |
|
|
137,170 |
|
|
144,489 |
|
|
— |
|
|
7,319 |
|
|
EUR |
|
10/21/10 |
|
|
349,362 |
|
|
459,682 |
|
|
476,209 |
|
|
— |
|
|
16,527 |
|
|
EUR |
|
10/21/10 |
|
|
120,736 |
|
|
158,779 |
|
|
164,573 |
|
|
— |
|
|
5,794 |
|
|
EUR |
|
10/27/10 |
|
|
380,000 |
|
|
513,105 |
|
|
517,948 |
|
|
— |
|
|
4,843 |
|
|
EUR |
|
10/29/10 |
|
|
1,049,694 |
|
|
1,366,701 |
|
|
1,430,733 |
|
|
— |
|
|
64,032 |
|
|
EUR |
|
11/04/10 |
|
|
95,618 |
|
|
131,310 |
|
|
130,321 |
|
|
989 |
|
|
— |
|
|
EUR |
|
11/09/10 |
|
|
235,404 |
|
|
305,212 |
|
|
320,828 |
|
|
— |
|
|
15,616 |
|
|
EUR |
|
11/10/10 |
|
|
112,000 |
|
|
143,638 |
|
|
152,642 |
|
|
— |
|
|
9,004 |
|
|
EUR |
|
11/10/10 |
|
|
107,263 |
|
|
138,342 |
|
|
146,187 |
|
|
— |
|
|
7,845 |
|
|
EUR |
|
11/22/10 |
|
|
69,730 |
|
|
91,822 |
|
|
95,024 |
|
|
— |
|
|
3,202 |
|
|
EUR |
|
11/30/10 |
|
|
973,792 |
|
|
1,238,663 |
|
|
1,326,943 |
|
|
— |
|
|
88,280 |
|
|
EUR |
|
12/09/10 |
|
|
472,112 |
|
|
659,748 |
|
|
643,280 |
|
|
16,468 |
|
|
— |
|
|
EUR |
|
12/09/10 |
|
|
1,328,906 |
|
|
1,646,490 |
|
|
1,810,714 |
|
|
— |
|
|
164,224 |
|
|
EUR |
|
12/14/10 |
|
|
770,758 |
|
|
979,634 |
|
|
1,050,164 |
|
|
— |
|
|
70,530 |
|
|
EUR |
|
12/15/10 |
|
|
266,559 |
|
|
343,000 |
|
|
363,186 |
|
|
— |
|
|
20,186 |
|
|
EUR |
|
12/24/10 |
|
|
1,127,976 |
|
|
1,513,180 |
|
|
1,536,759 |
|
|
— |
|
|
23,579 |
|
|
HUF |
|
12/09/10 |
|
|
501,892,200 |
|
|
2,666,342 |
|
|
2,455,379 |
|
|
210,963 |
|
|
— |
|
|
ILS |
|
10/01/10 |
|
|
1,262,403 |
|
|
340,000 |
|
|
346,585 |
|
|
— |
|
|
6,585 |
|
|
ILS |
|
10/01/10 |
|
|
4,764,597 |
|
|
1,293,234 |
|
|
1,308,093 |
|
|
— |
|
|
14,859 |
|
|
INR |
|
10/04/10 |
|
|
14,038,050 |
|
|
310,920 |
|
|
312,408 |
|
|
— |
|
|
1,488 |
|
|
INR |
|
10/06/10 |
|
|
21,951,210 |
|
|
489,000 |
|
|
488,333 |
|
|
667 |
|
|
— |
|
|
JPY |
|
10/21/10 |
|
|
86,324,746 |
|
|
997,000 |
|
|
1,034,226 |
|
|
— |
|
|
37,226 |
|
See Notes to Portfolio of Investments.
15
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (concluded) |
|
September 30, 2010 (unaudited) |
|
|
Forward Currency Sale Contracts open at September 30, 2010 (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency |
|
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
|
||||||||||||
|
JPY |
|
|
11/10/10 |
|
|
9,708,354 |
|
$ |
114,000 |
|
$ |
116,333 |
|
$ |
— |
|
$ |
2,333 |
|
|
JPY |
|
|
11/24/10 |
|
|
54,784,000 |
|
|
643,707 |
|
|
656,562 |
|
|
— |
|
|
12,855 |
|
|
JPY |
|
|
12/24/10 |
|
|
78,967,633 |
|
|
926,279 |
|
|
946,792 |
|
|
— |
|
|
20,513 |
|
|
KRW |
|
|
10/04/10 |
|
|
495,187,500 |
|
|
433,918 |
|
|
434,280 |
|
|
— |
|
|
362 |
|
|
KRW |
|
|
11/19/10 |
|
|
373,965,000 |
|
|
321,000 |
|
|
327,350 |
|
|
— |
|
|
6,350 |
|
|
KZT |
|
|
10/01/10 |
|
|
29,707,800 |
|
|
201,409 |
|
|
201,136 |
|
|
273 |
|
|
— |
|
|
MXN |
|
|
10/04/10 |
|
|
9,932,555 |
|
|
796,836 |
|
|
788,195 |
|
|
8,641 |
|
|
— |
|
|
MYR |
|
|
10/06/10 |
|
|
490,487 |
|
|
153,000 |
|
|
158,867 |
|
|
— |
|
|
5,867 |
|
|
MYR |
|
|
10/06/10 |
|
|
1,345,617 |
|
|
434,000 |
|
|
435,839 |
|
|
— |
|
|
1,839 |
|
|
MYR |
|
|
11/03/10 |
|
|
416,901 |
|
|
134,000 |
|
|
134,778 |
|
|
— |
|
|
778 |
|
|
PHP |
|
|
10/04/10 |
|
|
31,681,910 |
|
|
722,836 |
|
|
721,930 |
|
|
906 |
|
|
— |
|
|
RON |
|
|
10/19/10 |
|
|
791,350 |
|
|
231,774 |
|
|
252,375 |
|
|
— |
|
|
20,601 |
|
|
RSD |
|
|
10/04/10 |
|
|
10,233,000 |
|
|
131,200 |
|
|
130,787 |
|
|
413 |
|
|
— |
|
|
TWD |
|
|
12/22/10 |
|
|
14,605,000 |
|
|
460,000 |
|
|
468,025 |
|
|
— |
|
|
8,025 |
|
|
TWD |
|
|
12/22/10 |
|
|
12,556,900 |
|
|
398,000 |
|
|
402,393 |
|
|
— |
|
|
4,393 |
|
|
TWD |
|
|
03/22/11 |
|
|
13,503,640 |
|
|
425,714 |
|
|
433,634 |
|
|
— |
|
|
7,920 |
|
|
UGX |
|
|
10/04/10 |
|
|
514,860,500 |
|
|
229,337 |
|
|
229,241 |
|
|
96 |
|
|
— |
|
|
UGX |
|
|
10/06/10 |
|
|
72,341,500 |
|
|
32,223 |
|
|
32,203 |
|
|
20 |
|
|
— |
|
|
UYU |
|
|
10/04/10 |
|
|
2,950,500 |
|
|
145,524 |
|
|
145,238 |
|
|
286 |
|
|
— |
|
|
ZMK |
|
|
10/04/10 |
|
|
324,292,500 |
|
|
66,864 |
|
|
66,911 |
|
|
— |
|
|
47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Forward Currency Sale Contracts |
|
|
|
|
$ |
29,979,959 |
|
$ |
30,670,538 |
|
|
283,410 |
|
|
973,989 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts |
|
|
|
|
|
|
|
$ |
1,461,939 |
|
$ |
1,278,022 |
|
||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
See Notes to Portfolio of Investments.
16
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Notes to Portfolio of Investments |
|
September 30, 2010 (unaudited) |
|
|
|
|
|
|
(a) |
For federal income tax purposes, the aggregate cost was $93,563,939, aggregate gross unrealized appreciation was $12,109,072, aggregate gross unrealized depreciation was $6,062,842 and the net unrealized appreciation was $6,046,230. |
|
|
|
|
(b) |
Segregated security for forward currency contracts. |
|
|
|
|
(c) |
Principal amount denominated in respective country’s currency. |
|
|
|
Security Abbreviations: |
|
ADR — American Depositary Receipt |
|
NTN-F — Brazil Sovereign “Nota do Tesouro Nacional” Series F |
|
REIT — Real Estate Investment Trust |
|
|
|
|
|
|
|
|
Currency Abbreviations: |
|||||
|
ARS |
— |
Argentine Peso |
MXN |
— |
Mexican New Peso |
|
BRL |
— |
Brazilian Real |
MYR |
— |
Malaysian Ringgit |
|
CLP |
— |
Chilean Peso |
PEN |
— |
Peruvian New Sol |
|
CNY |
— |
Chinese Renminbi |
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 |
UAH |
— |
Ukrainian Hryvnia |
|
KES |
— |
Kenyan Shilling |
UGX |
— |
Ugandan Shilling |
|
KRW |
— |
South Korean Won |
UYU |
— |
Uruguayan Peso |
|
KZT |
— |
Kazakhstani Tenge |
ZMK |
— |
Zambian Kwacha |
|
|
|
|
|
|
Portfolio holdings by industry (as percentage of net assets): |
|
|
|
|
|
|||
|
Agriculture |
|
1.8 |
% |
|
Alcohol & Tobacco |
|
7.7 |
|
|
Automotive |
|
1.2 |
|
|
Banking |
|
9.3 |
|
|
Commercial Services |
|
2.9 |
|
|
Construction & Engineering |
|
1.2 |
|
|
Consumer Products |
|
3.0 |
|
|
Electric |
|
2.0 |
|
|
Energy Exploration & Production |
|
0.7 |
|
|
Energy Integrated |
|
8.6 |
|
|
Energy Services |
|
1.4 |
|
|
Financial Services |
|
6.6 |
|
|
Food & Beverages |
|
0.4 |
|
|
Gas Utilities |
|
0.7 |
|
|
Housing |
|
0.5 |
|
|
Insurance |
|
7.1 |
|
|
Leisure & Entertainment |
|
6.9 |
|
|
Manufacturing |
|
3.3 |
|
|
Metals & Mining |
|
3.3 |
|
|
Pharmaceutical & Biotechnology |
|
3.3 |
|
|
Real Estate |
|
2.7 |
|
|
Retail |
|
0.6 |
|
|
Semiconductors & Components |
|
5.1 |
|
|
Technology Hardware |
|
1.0 |
|
|
Telecommunications |
|
13.7 |
|
|
Transportation |
|
3.9 |
|
|
|
|
||
|
Subtotal |
|
98.9 |
|
|
Foreign Government Obligations |
|
9.4 |
|
|
Short-Term Investment |
|
0.5 |
|
|
|
|
||
|
Total Investments |
|
108.8 |
% |
|
|
|
17
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Notes to Portfolio of Investments (continued) |
|
September 30, 2010 (unaudited) |
|
|
Valuation of Investments:
Market 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.
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 Fund’s net asset value is calculated, or when current market quotations otherwise are determined not to 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 Manager’s analysts will also be considered.
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. Fair Value Measurements and Disclosures provisions of accounting principles generally accepted in the United States of America (“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.
|
|
|
|
• |
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.
18
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Notes to Portfolio of Investments (continued) |
|
September 30, 2010 (unaudited) |
|
|
The following table summarizes the valuation of the Fund’s investments by each fair value hierarchy level as of September 30, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
|
Unadjusted |
|
Significant |
|
Significant |
|
Balance as of |
|
||||
|
|
|
|
|
|
|
|||||||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks* |
|
$ |
88,496,564 |
|
$ |
— |
|
$ |
— |
|
$ |
88,496,564 |
|
|
|
Limited Partnership Units* |
|
|
1,264,056 |
|
|
— |
|
|
— |
|
|
1,264,056 |
|
|
|
Preferred Stock* |
|
|
682,837 |
|
|
— |
|
|
— |
|
|
682,837 |
|
|
|
Right* |
|
|
91,590 |
|
|
— |
|
|
— |
|
|
91,590 |
|
|
|
Foreign Government Obligations |
|
|
— |
|
|
8,113,372 |
|
|
520,858 |
|
|
8,634,230 |
|
|
|
Short-Term Investment |
|
|
— |
|
|
440,892 |
|
|
— |
|
|
440,892 |
|
|
|
Other Financial Instruments** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency Contracts |
|
|
— |
|
|
1,461,939 |
|
|
— |
|
|
1,461,939 |
|
|
|
|
|
|
|
|
|
|||||||||
|
Total |
|
$ |
90,535,047 |
|
$ |
10,016,203 |
|
$ |
520,858 |
|
$ |
101,072,108 |
|
|
|
|
|
|
|
|
|
|||||||||
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Instruments** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency Contracts |
|
$ |
— |
|
$ |
(1,278,022 |
) |
$ |
— |
|
$ |
(1,278,022 |
) |
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
||
|
* |
Please refer to the Notes to Portfolio of Investments, on page 17, 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 September 30, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
|
Balance |
|
Accrued |
|
Realized |
|
Change in |
|
Purchases |
|
Sales |
|
Net |
|
Net |
|
Balance |
|
Net Change in |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Government Obligations |
|
$ |
873,026 |
|
$ |
19,316 |
|
$ |
(161,002 |
) |
$ |
183,597 |
|
$ |
108,680 |
|
$ |
(502,759 |
) |
$ |
— |
|
$ |
— |
|
$ |
520,858 |
|
$ |
27,905 |
|
|
|
Supranationals |
|
|
348,339 |
|
|
791 |
|
|
(94,660 |
) |
|
93,153 |
|
|
— |
|
|
(347,623 |
) |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Total |
|
$ |
1,221,365 |
|
$ |
20,107 |
|
$ |
(255,662 |
) |
$ |
276,750 |
|
$ |
108,680 |
|
$ |
(850,382 |
) |
$ |
— |
|
$ |
— |
|
$ |
520,858 |
|
$ |
27,905 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
19
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Notes to Portfolio of Investments (concluded) |
|
September 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. Additionally, the ASU amends disclosures about providing purchases, sales, issuances, and settlements on a gross basis relating to Level 3 measurements. The ASU guidance is effective for fiscal years beginning after December 15, 2009, and for interim periods within those fiscal years, except for the requirement to provide the Level 3 activity of purchases, sales, issuances, and settlements on a gross basis, which will be effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. There were no significant transfers into and out of Levels 1, 2, and 3 during the period ended September 30, 2010.
20
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Dividend Reinvestment Plan |
|
(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 Fund’s 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 stock‘s market price on that date. |
|
|
|
|
(2) |
If the common stock is trading below net asset value at the time of valuation, the Plan Agent will receive the dividend or distribution in cash and will purchase common stock in the open market, on the NYSE or elsewhere, for the participants’ accounts. It is possible that the market price for the common stock may increase before the Plan Agent has completed its purchases. Therefore, the average purchase price per share paid by the Plan Agent may exceed the market price at the time of valuation, resulting in the purchase of fewer shares than if the dividend or distribution had been paid in common stock issued by the Fund. The Plan Agent will use all dividends and distributions received in cash to purchase common stock in the open market within 30 days of the valuation date. Interest will not be paid on any uninvested cash payments. |
You may withdraw from the Plan at any time by giving written notice to the Plan Agent. If you withdraw or the Plan is terminated, you will receive whole shares in your account under the Plan and you will receive a cash payment for any fraction of a share in your account. If you wish, the Plan Agent will sell your shares and send you the proceeds, minus an initial $15 service fee plus $0.12 per share being liquidated (for processing and brokerage expenses).
The Plan Agent maintains all stockholders’ accounts in the Plan and gives written confirmation of all transactions in the accounts, including information you may need for tax records. Shares of common stock in your account will be held by the Plan Agent in non-certificated form. Any proxy you receive will include all common stock you have received under the Plan.
There is no brokerage charge for reinvestment of your dividends or distributions in newly-issued shares of common stock. However, all participants will pay a pro rata share of brokerage commissions incurred by the Plan Agent when it makes open market purchases.
Automatically reinvesting dividends and distributions does not mean that you do not have to pay income taxes due upon receiving dividends and distributions.
If you hold your common stock with a brokerage firm that does not participate in the Plan, you will not be able to participate in the Plan and any dividend reinvestment may be effected on different terms than those described above. Consult your financial advisor for more information.
The Fund reserves the right to amend or terminate the Plan if, in the judgment of the Board, 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.
21
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Board of Directors and Officers Information |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Name (Age) |
|
Position(s) |
|
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 (63) |
|
Director |
|
President, Fair wood 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: |
|
|
|
|
|
|
|
|
|
|
|
Charles L. Carroll (50) |
|
Chief Executive Officer, President and Director |
|
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)(2) |
|
Director |
|
President, Davidson Capital Management Corporation; Partner, Aquiline Holdings LLC; Trustee, The Juilliard School; Chairman of the Board, Bridgehampton Chamber Music Festival; Trustee, American Friends of the National Gallery, London |
|
|
|
|
|
|
|
Nancy A. Eckl (48) |
|
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 (49 funds) and TIAA-CREF Life Funds (10 funds), and Member of the Management Committee of TIAA Separate Account VA-1 |
|
|
|
|
|
|
|
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, O’Charley’s, Inc., a restaurant chain |
|
|
|
|
|
|
|
Interested Director: |
|
|
|
|
|
|
|
|
|
|
|
Ashish Bhutani (50) |
|
Director |
|
Chief Executive Officer of the Investment Manager; Vice Chairman of Lazard Ltd (since January 2010) |
|
|
|
|
(1) |
Each Director also serves as a Director of The Lazard Funds, Inc., Lazard Retirement Series, Inc. and Lazard Global Total Return and Income Fund, Inc. (collectively, with the Fund, the “Lazard Funds”). 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 Investment Company Act of 1940 and advised by an affiliate of the Investment Manager. |
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(2) |
It is possible that Mr. Davidson could be deemed to be an affiliate of a company that has an indirect ownership interest in a broker-dealer that the Investment Manager may use to execute portfolio transactions for clients other than the Fund, and thus an “interested person” (as defined in the 1940 Act) of the Fund. However, due to the structure of Mr. Davidson’s relationship with the company and the remote nature of any deemed affiliation with the broker-dealer, Mr. Davidson is not identified as an “interested person” (as defined in the 1940 Act) of the Fund. Mr. Davidson participates in Fund Board meetings as if his status were that of an “interested person” (as defined in the 1940 Act). |
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22
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|
|
Lazard World Dividend & Income Fund, Inc. |
|
Board of Directors and Officers Information (concluded) |
|
(unaudited) |
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|
|
Name (Age) |
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Position(s) |
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Principal Occupation(s) During Past 5 Years |
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Officers(2): |
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|
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Nathan A. Paul (37) |
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Vice President |
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Managing Director and General Counsel of the Investment Manager |
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Stephen St. Clair (52) |
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Treasurer |
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Vice President of the Investment Manager |
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|
|
|
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|
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Brian D. Simon (48) |
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Chief Compliance Officer and Assistant Secretary |
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Director (since January 2006) and Chief Compliance Officer (since January 2009); and previously Senior Vice President (2002 to 2005) of the Investment Manager |
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Tamar Goldstein (35) |
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Assistant Secretary |
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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 |
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|
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Cesar A. Trelles (35) |
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Assistant Treasurer |
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Fund Administration Manager of the Investment Manager |
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|
|
|
(1) |
Each officer also serves as an officer for each of the Lazard Funds. |
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|
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(2) |
In addition to Charles L. Carroll, President, whose information is included in the Class I Interested Director section. |
23
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|
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Lazard World Dividend & Income Fund, Inc. |
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30 Rockefeller Plaza |
|
New York, New York 10112-6300 |
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Telephone: 800-823-6300 |
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http://www.LazardNet.com |
|
|
|
Investment Manager |
|
Lazard Asset Management LLC |
|
30 Rockefeller Plaza |
|
New York, New York 10112-6300 |
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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 |
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, NY 10112-6300
www.LazardNet.com
This report is intended only for the information of stockholders of Lazard World Dividend & Income Fund, Inc.