Lazard World
Dividend & Income
Fund, Inc.
Third Quarter Report
S E P T E M B E R 3 0 , 2 0 1 2
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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, 2012. LOR 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.”
For the quarter- and year-to-date periods ended September 30, 2012, the Fund’s net asset value (“NAV”) performance exceeded its benchmark, the Morgan Stanley Capital International (MSCI®) All Country World Index (ACWI®) (the “Index”). We are pleased with LOR’s favorable NAV performance over the one-, three-, and five-year periods, as well as since inception. We believe that 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, 2012)
For the third quarter of 2012, the Fund’s NAV returned 9.1%, outperforming the Index return of 6.8%. Similarly, the year-to-date NAV return of 16.7% exceeded the Index gain of 12.9%. The Fund’s NAV performance has outperformed the Index for the one-, three-, and five-year periods, as well as returning, on an annualized basis, 6.1% since inception versus 4.5% for the Index. Shares of LOR ended the third quarter of 2012 with a market price of $12.16, representing an 11.0% discount to the Fund’s NAV of $13.66.
The Fund’s net assets were $94.0 million as of September 30, 2012, with total leveraged assets of $129.5 million, representing a 27.4% leverage rate. This leverage rate is higher than that at the end of the last quarter (23.6%), but below the maximum permitted leverage rate of 33⅓%.
Within the world equity portfolio, stock selection within the financials, consumer discretionary, industrials, and utilities sectors helped performance during the third quarter. Stock selection within Brazil, and a lower-than-Index exposure to Japan, also added value. However, stock selection in the energy sector detracted from performance.
Performance for the smaller, short duration1 emerging market currency and debt portion of the Fund was strong in third quarter, and has performed well for the year-to-date period. It has contributed positively to performance since inception.
As of September 30, 2012, 72.1% of the Fund’s total leveraged assets consisted of world equities, and 27.9% consisted of emerging market currency and debt instruments.
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 (December 31, 2011). The current monthly distribution rate per share of $0.06635 represents a distribution yield of 6.6% based on the Fund’s $12.16 market price as of the close of trading on the NYSE on September 30, 2012. It is currently estimated that $0.17063 of the $0.59715 distributed per share year-to-date through September 30, 2012 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
(72.1%
of total leveraged assets)
The Fund’s world equity portfolio is typically invested in 60 to 90 securities 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 Insurance Group, a Swiss insurance-based financial services provider active in North America, Europe, Asia-Pacific, Latin America, and other markets; and Kumba Iron Ore, an iron ore mining company based in South Africa.
As of September 30, 2012, 34.7% of these stocks were based in North America, 28.9% were based in Continental Europe (not including the United Kingdom), 12.9% were from Asia (not including Japan), 9.3% were based in Africa and the Middle East, 8.3% were from the United Kingdom, 3.6% were based in Latin America, and 2.3% were from Japan. The world equity portfolio is similarly well diversified across a number of industry sectors. The top two sectors, by weight, at September 30, 2012, were financials (28.5%), which includes banks, insurance companies, and financial services companies, and telecom services (11.3%), which include companies specializing in communications or telecommunication equipment production. Other sectors in the portfolio include consumer discretionary, consumer staples, energy, health care, industrials, information technology, materials, and utilities. The average dividend yield on the securities held in the world equity portfolio was approximately 4.9% as of September 30, 2012.
World Equity Markets Review
After
falling sharply in the second quarter on concerns over the European sovereign
crisis and slowdowns in the United States and China, global markets rebounded
in the third quarter as sentiment on the U.S. economic outlook improved. More
importantly, the European Central Bank (ECB) announced it would begin
purchasing sovereign debt in the secondary market, alongside the European
Stability Mechanism (ESM), for countries which agreed to certain conditions, an
action that was perceived to greatly reduce the risk of an uncontrolled
break-up of the euro area. Stocks essentially regained the ground they had lost
in the second quarter and, while valuations are clearly less compelling than
they were at the low prices of the summer, they remain broadly quite attractive
in our view. Investor sentiment on the macroeconomic outlook continues to
gyrate from one quarter to the next, as it has since the financial crisis
began, and the slow, halting recovery which typically follows financial crises
commenced. We expect this environment to remain for the foreseeable future, and
believe it creates opportunities for the investor that is able to maintain
focus on individual company fundamentals amid the rapidly changing macro
prognostication.
What Helped and What Hurt LOR
Stock
selection within the financials, consumer discretionary, industrials, and
utilities sectors helped performance during the third quarter. Stock selection
within Brazil, and a lower-than-Index exposure to Japan, also added value. The
portfolio was helped by its position in Italian toll road operator Atlantia,
which rebounded on the ECB’s announcement of the Outright Monetary Transactions
program. Investors were also heartened as Atlantia sold €750 million of
bonds during September. Shares of Banco do Brasil also contributed to returns.
The stock largely rallied as investors moved toward more economically-sensitive
assets and as the Brazilian market outperformed. We believe the bank’s growing
franchise and loan portfolio place it in a strong position relative to peers.
Shares of fertilizer producer Israel Chemicals also helped performance, as the
stock rose due to lessened company-specific regulatory concerns.
In contrast, stock selection in the energy sector detracted from performance. The Fund’s position in smartphone maker HTC also detracted from performance. In our view, the company failed to build critical scale after the product launch for its flagship phone, disappointing the market. We sold the position
2
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Lazard World Dividend & Income Fund, Inc. |
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Investment Overview (continued) |
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during the third quarter. Shares of Mack-Cali Realty, a real estate investment trust (REIT) primarily based in the northeastern United States, also detracted from performance as suburban office REITs have been out of favor. However, we find the company’s valuation and dividend yield attractive at current levels. Shares of Chinese construction machinery equipment maker Zoomlion Heavy Industry Science and Technology also hurt returns. The company declined due to investor concern of slowing demand.
Emerging Market Currency and Debt Portfolio
(27.9%
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, 2012, this portfolio consisted of forward currency contracts (65.9%) and sovereign debt obligations (34.1%). The average duration of the emerging market currency and debt portfolio decreased from approximately 10 months to approximately 9 months during the third quarter, while the average yield declined from 7.8%2 as of the end of June 2012 to 6.8% on September 30, 2012.
Emerging Market Currency and Debt Market Review
Emerging
local markets performed well during the third quarter. After subdued yet positive
performance in August, markets rallied in September following decisive actions
by policymakers from the ECB and the U.S. Federal Reserve. We believe that
several of the steps recently undertaken are risk-mitigating actions, including
the ECB’s announcement of Outright Monetary Transactions, support for the ESM,
and open-ended quantitative easing (QE3) in the United States. This may rein in
the panic-driven market mentality and prompt investors to take note that
emerging market fundamentals and currency valuations are not only generally
more compelling than those of the developed markets, but are also widening the
gap with time.
What Helped and What Hurt LOR
Ghana’s
currency rebound, high carry, and massive fixed-income capital gains (i.e.,
1000 basis point yield curve compression) significantly contributed to the
portfolio’s strong performance in the third quarter. Other frontier markets,
such as Nigeria and Uruguay, were also among the top contributors, as a result
of high carry and favorable currency performance. Russia’s high carry and the
continued rebound in the ruble (following May’s dislocation) were strongly
additive, while active currency management also added value. Country selection
in Asia, namely a significant weight in top performer India, was also among the
top contributors owing to the government’s reform announcements. Elsewhere in
Asia, large exposures to solid gainers (i.e., Malaysia, Thailand, and China)
relative to the laggards (i.e., Indonesia, Hong Kong, Singapore, and the Philippines)
added alpha. Active management in South Africa involving a currency reduction
and profit-taking on nominal bonds and a subsequent reinvestment into
inflation-linked paper during the middle of the quarter resulted in substantial
outperformance relative to the money market’s muted result. Inflation-linked
bonds in Turkey and Brazil, as well as nominal bonds in Mexico and Hungary,
added value.
Conversely, Romania detracted from performance, as a referendum aimed at impeaching the president weighed on Romania’s currency prior to the referendum’s defeat. Subsequently, the International Monetary Fund’s disbursement review concluded favorably and facilitated a rebound in the Romanian leu. A small exposure to Indonesia, a laggard during the quarter, modestly hurt performance. Little or no exposure to solid gainers, such as Chile, Argentina, Peru, and the Czech Republic, limited the upside from those markets.
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Lazard World Dividend & Income Fund, Inc. |
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Investment Overview (continued) |
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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.
The performance data of the Index and other
market data have been prepared from sources and data that the Investment
Manager believes to be reliable, but no representation is made as to their
accuracy. The Index is a free float-adjusted market capitalization weighted
index that is designed to measure the equity market performance of global
developed and emerging markets. The Index is unmanaged, has no fees or costs
and is not available for investment.
The views of the Fund’s Investment Manager and the securities described in this report are as of September 30, 2012; 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.
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)
Average
Annual Total Returns*
Periods Ended September 30, 2012
(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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15.67 |
% |
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-1.32 |
% |
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4.61 |
% |
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Net Asset Value |
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25.60 |
% |
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-0.56 |
% |
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6.14 |
% |
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MSCI ACWI Index |
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20.98 |
% |
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-2.07 |
% |
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4.53 |
% |
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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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Lazard World Dividend & Income Fund, Inc. |
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Investment Overview (concluded) |
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Ten
Largest Equity Holdings
September 30, 2012 (unaudited)
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Security |
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Value |
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Percentage of |
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Israel Chemicals, Ltd. |
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$ |
3,325,097 |
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3.5 |
% |
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CenturyLink, Inc. |
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2,941,120 |
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3.1 |
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Atlantia SpA |
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2,776,671 |
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3.0 |
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Royal Dutch Shell PLC, A Shares |
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2,611,151 |
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2.8 |
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Eni SpA |
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2,588,322 |
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2.8 |
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Southern Copper Corp. |
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2,566,005 |
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2.7 |
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Vodafone Group PLC |
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2,539,497 |
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2.7 |
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Allianz SE |
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2,349,552 |
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2.5 |
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Mobile TeleSystems OJSC Sponsored ADR |
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2,259,730 |
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2.4 |
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Darden Restaurants, Inc. |
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2,101,775 |
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2.2 |
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Lazard World Dividend & Income Fund, Inc. |
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Portfolio of Investments |
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September 30, 2012 (unaudited) |
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Description |
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Shares |
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Value |
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Common Stocks—98.4% |
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Australia—4.3% |
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DUET Group |
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534,100 |
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$ |
1,130,205 |
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Telstra Corp., Ltd. |
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175,646 |
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714,215 |
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Transurban Group |
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181,260 |
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1,128,126 |
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Westfield Group REIT |
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98,961 |
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1,042,947 |
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4,015,493 |
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Brazil—3.6% |
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Banco do Brasil SA |
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146,817 |
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1,796,060 |
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Direcional Engenharia SA |
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124,900 |
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695,583 |
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MRV Engenharia e Participacoes SA |
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88,900 |
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531,931 |
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Vale SA Sponsored ADR |
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18,800 |
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336,520 |
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3,360,094 |
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Canada—0.9% |
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Just Energy Group, Inc. |
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75,200 |
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819,680 |
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China—4.3% |
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Agricultural Bank of China, Ltd., |
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3,290,000 |
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1,285,612 |
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China Construction Bank Corp., |
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1,634,180 |
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1,133,845 |
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Dongyue Group |
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260,000 |
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115,346 |
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Industrial and Commercial Bank |
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1,036,440 |
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612,183 |
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Zoomlion Heavy Industry Science |
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778,800 |
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883,853 |
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4,030,839 |
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Denmark—0.7% |
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Pandora A/S |
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48,644 |
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662,393 |
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Egypt—1.6% |
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Orascom Construction Industries |
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31,840 |
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1,499,680 |
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Finland—2.1% |
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Sampo Oyj, A Shares |
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62,644 |
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1,948,921 |
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France—6.3% |
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AXA SA |
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85,960 |
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1,280,265 |
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Rexel SA |
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46,333 |
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932,399 |
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Sanofi SA |
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10,758 |
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917,260 |
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Total SA |
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27,541 |
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1,366,114 |
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Valeo SA |
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31,777 |
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1,470,061 |
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5,966,099 |
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Germany—3.4% |
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Allianz SE |
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19,747 |
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2,349,552 |
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Bayerische Motoren Werke AG |
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11,382 |
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832,391 |
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3,181,943 |
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Indonesia—1.6% |
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PT Bank Pembangunan Daerah Jawa |
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1,889,000 |
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217,127 |
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PT Perusahaan Gas Negara (Persero) |
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3,085,000 |
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1,329,741 |
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1,546,868 |
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Israel—3.5% |
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Israel Chemicals, Ltd. |
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274,268 |
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3,325,097 |
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Italy—5.7% |
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Atlantia SpA |
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178,870 |
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2,776,671 |
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Eni SpA |
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118,342 |
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2,588,322 |
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5,364,993 |
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Japan—2.3% |
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Daito Trust Construction Co., Ltd. |
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11,200 |
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1,126,602 |
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Mizuho Financial Group, Inc. |
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613,600 |
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998,554 |
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2,125,156 |
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Norway—0.7% |
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Orkla ASA |
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85,891 |
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652,327 |
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Russia—5.0% |
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Mobile TeleSystems OJSC Sponsored |
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128,980 |
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2,259,730 |
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Oriflame Cosmetics SA SDR |
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31,960 |
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1,094,234 |
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Sberbank of Russia GDR (a), (b), (c) |
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113,600 |
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1,329,120 |
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4,683,084 |
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See Notes to Portfolio of Investments.
7
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Lazard World Dividend & Income Fund, Inc. |
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Portfolio of Investments (continued) |
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September 30, 2012 (unaudited) |
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Description |
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Shares |
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Value |
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South Africa—4.1% |
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Kumba Iron Ore, Ltd. |
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13,647 |
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$ |
824,625 |
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Lewis Group, Ltd. |
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22,638 |
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194,502 |
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Life Healthcare Group Holdings Pte, |
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197,790 |
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754,516 |
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MTN Group, Ltd. |
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51,100 |
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983,627 |
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Vodacom Group, Ltd. |
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92,800 |
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1,138,397 |
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3,895,667 |
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Spain—1.1% |
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Red Electrica Corporacion SA |
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21,760 |
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1,031,683 |
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Switzerland—1.6% |
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Zurich Insurance Group AG |
|
|
6,005 |
|
|
1,495,344 |
|
|
|
|
|
|
|
|
||
|
Taiwan—2.3% |
|
|
|
|
|
|
|
|
Siliconware Precision Industries Co. |
|
|
696,000 |
|
|
775,220 |
|
|
Taiwan Semiconductor Manufacturing |
|
|
448,290 |
|
|
1,373,307 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
2,148,527 |
|
|
|
|
|
|
|
|
||
|
Thailand—0.3% |
|
|
|
|
|
|
|
|
Tisco Financial Group Public Co., Ltd. |
|
|
198,000 |
|
|
295,906 |
|
|
|
|
|
|
|
|
||
|
Turkey—2.2% |
|
|
|
|
|
|
|
|
Tofas Turk Otomobil Fabrikasi AS |
|
|
187,600 |
|
|
947,786 |
|
|
Tupras-Turkiye Petrol Rafinerileri AS |
|
|
48,775 |
|
|
1,112,686 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
2,060,472 |
|
|
|
|
|
|
|
|
||
|
United Kingdom—8.2% |
|
|
|
|
|
|
|
|
Aviva PLC |
|
|
158,460 |
|
|
815,493 |
|
|
BAE Systems PLC |
|
|
162,456 |
|
|
852,847 |
|
|
Man Group PLC |
|
|
699,499 |
|
|
930,185 |
|
|
Royal Dutch Shell PLC, A Shares (a) |
|
|
75,537 |
|
|
2,611,151 |
|
|
Vodafone Group PLC |
|
|
894,816 |
|
|
2,539,497 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
7,749,173 |
|
|
|
|
|
|
|
|
||
|
United States—32.6% |
|
|
|
|
|
|
|
|
Ameriprise Financial, Inc. |
|
|
8,400 |
|
|
476,196 |
|
|
Baxter International, Inc. |
|
|
15,300 |
|
|
921,978 |
|
|
CenturyLink, Inc. (a) |
|
|
72,800 |
|
|
2,941,120 |
|
|
Cisco Systems, Inc. (a) |
|
|
71,800 |
|
|
1,370,662 |
|
|
Cliffs Natural Resources, Inc. |
|
|
8,790 |
|
|
343,953 |
|
|
ConocoPhillips |
|
|
16,560 |
|
|
946,901 |
|
|
Darden Restaurants, Inc. (a) |
|
|
37,700 |
|
|
2,101,775 |
|
|
Dow Chemical Co. |
|
|
18,600 |
|
|
538,656 |
|
|
Duke Realty Corp. REIT (a) |
|
|
81,400 |
|
|
1,196,580 |
|
|
E.l. du Pont de Nemours & Co. |
|
|
9,130 |
|
|
458,965 |
|
|
Entertainment Properties Trust REIT |
|
|
10,400 |
|
|
462,072 |
|
|
Fifth Third Bancorp |
|
|
38,300 |
|
|
594,033 |
|
|
Freeport-McMoRan Copper & Gold, |
|
|
12,900 |
|
|
510,582 |
|
|
General Electric Co. |
|
|
24,100 |
|
|
547,311 |
|
|
H.J. Heinz Co. |
|
|
10,900 |
|
|
609,855 |
|
|
Harsco Corp. (a) |
|
|
53,230 |
|
|
1,092,812 |
|
|
Honeywell International, Inc. |
|
|
7,700 |
|
|
460,075 |
|
|
Intel Corp. (a) |
|
|
31,130 |
|
|
706,028 |
|
|
Johnson & Johnson (a) |
|
|
13,000 |
|
|
895,830 |
|
|
Mack-Cali Realty Corp. REIT (a) |
|
|
40,300 |
|
|
1,071,980 |
|
|
Medical Properties Trust, Inc. REIT |
|
|
44,300 |
|
|
462,935 |
|
|
Merck & Co., Inc. (a) |
|
|
42,500 |
|
|
1,916,750 |
|
|
Molson Coors Brewing Co., |
|
|
27,300 |
|
|
1,229,865 |
|
|
Pfizer, Inc. (a) |
|
|
52,200 |
|
|
1,297,170 |
|
|
Southern Copper Corp. (a) |
|
|
74,680 |
|
|
2,566,005 |
|
|
Sysco Corp. (a) |
|
|
64,900 |
|
|
2,029,423 |
|
|
Texas Instruments, Inc. |
|
|
22,300 |
|
|
614,365 |
|
|
The Carlyle Group L.P. |
|
|
38,400 |
|
|
1,007,616 |
|
|
The Macerich Co. REIT (a) |
|
|
22,300 |
|
|
1,276,229 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
30,647,722 |
|
|
|
|
|
|
|
|
||
|
Total Common Stocks |
|
|
|
|
|
92,507,161 |
|
|
|
|
|
|
|
|
||
|
Preferred Stock—1.0% |
|
|
|
|
|
|
|
|
United States—1.0% |
|
|
|
|
|
|
|
|
Capital One Financial Corp., |
|
|
37,205 |
|
|
930,869 |
|
|
|
|
|
|
|
|
||
See Notes to Portfolio of Investments.
8
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2012 (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
Principal |
|
Value |
|
||
|
Foreign Government |
|
|
|
|
|
|
|
|
Brazil—3.3% |
|
|
|
|
|
|
|
|
Brazil NTN-B, |
|
|
|
|
|
|
|
|
6.00%, 05/15/15 |
|
|
2,330 |
|
$ |
2,768,733 |
|
|
6.00%, 08/15/16 |
|
|
273 |
|
|
326,481 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
3,095,214 |
|
|
|
|
|
|
|
|
||
|
Colombia—0.1% |
|
|
|
|
|
|
|
|
Republic of Colombia, |
|
|
188,000 |
|
|
128,629 |
|
|
|
|
|
|
|
|
||
|
Ghana—1.3% |
|
|
|
|
|
|
|
|
Ghana Government Bonds: |
|
|
|
|
|
|
|
|
24.00%, 05/25/15 |
|
|
850 |
|
|
510,080 |
|
|
26.00%, 06/05/17 |
|
|
1,000 |
|
|
675,976 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
1,186,056 |
|
|
|
|
|
|
|
|
||
|
Hungary—1.5% |
|
|
|
|
|
|
|
|
Hungary Government Bonds: |
|
|
|
|
|
|
|
|
7.75%, 08/24/15 |
|
|
53,180 |
|
|
245,021 |
|
|
5.50%, 02/12/16 |
|
|
47,000 |
|
|
204,283 |
|
|
Hungary Treasury Bills: |
|
|
|
|
|
|
|
|
0.00%, 10/03/12 |
|
|
100,500 |
|
|
452,943 |
|
|
0.00%, 12/19/12 |
|
|
66,500 |
|
|
295,375 |
|
|
0.00%, 04/17/13 |
|
|
50,500 |
|
|
219,781 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
1,417,403 |
|
|
|
|
|
|
|
|
||
|
Mexico—3.4% |
|
|
|
|
|
|
|
|
Mexican Bonos: |
|
|
|
|
|
|
|
|
7.00%, 06/19/14 |
|
|
13,170 |
|
|
1,062,868 |
|
|
9.50%, 12/18/14 |
|
|
9,000 |
|
|
769,201 |
|
|
Mexican Cetes: |
|
|
|
|
|
|
|
|
0.00%, 02/21/13 |
|
|
61,300 |
|
|
467,850 |
|
|
0.00%, 03/21/13 |
|
|
72,000 |
|
|
547,227 |
|
|
Mexican Udibonos, |
|
|
4,181 |
|
|
376,532 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
3,223,678 |
|
|
|
|
|
|
|
|
||
|
Poland—0.6% |
|
|
|
|
|
|
|
|
Poland Government Bond, |
|
|
1,775 |
|
|
578,581 |
|
|
|
|
|
|
|
|
||
|
South Africa—0.6% |
|
|
|
|
|
|
|
|
Republic of South Africa, |
|
|
3,075 |
|
|
531,429 |
|
|
|
|
|
|
|
|
||
|
Turkey—2.1% |
|
|
|
|
|
|
|
|
Turkey Government Bonds: |
|
|
|
|
|
|
|
|
0.00%, 03/20/13 |
|
|
1,169 |
|
|
629,982 |
|
|
10.00%, 12/04/13 |
|
|
310 |
|
|
177,488 |
|
|
3.00%, 07/21/21 |
|
|
1,518 |
|
|
887,017 |
|
|
3.00%, 02/23/22 |
|
|
391 |
|
|
229,963 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
1,924,450 |
|
|
|
|
|
|
|
|
||
|
Uruguay—1.1% |
|
|
|
|
|
|
|
|
Uruguay Monetary Regulation Bills: |
|
|
|
|
|
|
|
|
0.00%, 11/05/12 |
|
|
3,500 |
|
|
165,286 |
|
|
0.00%, 12/07/12 |
|
|
2,000 |
|
|
93,724 |
|
|
0.00%, 05/09/13 |
|
|
1,350 |
|
|
60,667 |
|
|
0.00%, 06/27/13 |
|
|
2,880 |
|
|
127,869 |
|
|
0.00%, 07/05/13 |
|
|
11,150 |
|
|
494,560 |
|
|
0.00%, 08/15/13 |
|
|
3,000 |
|
|
131,072 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
1,073,178 |
|
|
|
|
|
|
|
|
||
|
Total Foreign Government |
|
|
|
|
|
13,158,618 |
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Description |
|
Shares |
|
Value |
|
||
|
Short-Term Investment—0.4% |
|
|
|
|
|
|
|
|
State Street Institutional Treasury |
|
|
416,262 |
|
$ |
416,262 |
|
|
|
|
|
|
|
|
||
|
Total Investments—113.8% |
|
|
|
|
$ |
107,012,910 |
|
|
Liabilities in Excess of Cash |
|
|
|
|
|
(12,996,773 |
) |
|
|
|
|
|
|
|
||
|
Net Assets—100.0% |
|
|
|
|
$ |
94,016,137 |
|
|
|
|
|
|
|
|
||
See Notes to Portfolio of Investments.
9
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2012 (unaudited) |
|
|
Forward Currency Purchase Contracts open at September 30, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency |
|
Counterparty |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
BRL |
|
BRC |
|
10/02/12 |
|
|
367,195 |
|
$ |
180,484 |
|
$ |
181,129 |
|
$ |
645 |
|
$ |
— |
|
|
BRL |
|
BRC |
|
10/02/12 |
|
|
986,980 |
|
|
488,000 |
|
|
486,857 |
|
|
— |
|
|
1,143 |
|
|
BRL |
|
BRC |
|
10/02/12 |
|
|
1,025,156 |
|
|
506,000 |
|
|
505,688 |
|
|
— |
|
|
312 |
|
|
CLP |
|
UBS |
|
10/11/12 |
|
|
220,223,600 |
|
|
436,000 |
|
|
463,617 |
|
|
27,617 |
|
|
— |
|
|
CNY |
|
BRC |
|
10/15/12 |
|
|
2,121,401 |
|
|
334,000 |
|
|
337,394 |
|
|
3,394 |
|
|
— |
|
|
CNY |
|
JPM |
|
11/26/12 |
|
|
6,435,858 |
|
|
1,014,000 |
|
|
1,019,816 |
|
|
5,816 |
|
|
— |
|
|
CNY |
|
RBC |
|
10/11/12 |
|
|
6,768,515 |
|
|
1,067,471 |
|
|
1,076,856 |
|
|
9,385 |
|
|
— |
|
|
COP |
|
BNP |
|
10/22/12 |
|
|
930,961,900 |
|
|
517,000 |
|
|
515,694 |
|
|
— |
|
|
1,306 |
|
|
COP |
|
CIT |
|
10/09/12 |
|
|
547,543,750 |
|
|
299,000 |
|
|
303,905 |
|
|
4,905 |
|
|
— |
|
|
CZK |
|
JPM |
|
10/02/12 |
|
|
9,561,888 |
|
|
464,915 |
|
|
488,803 |
|
|
23,888 |
|
|
— |
|
|
DOP |
|
CIT |
|
10/15/12 |
|
|
4,078,800 |
|
|
103,475 |
|
|
103,499 |
|
|
24 |
|
|
— |
|
|
DOP |
|
CIT |
|
10/16/12 |
|
|
7,474,950 |
|
|
189,267 |
|
|
189,645 |
|
|
378 |
|
|
— |
|
|
EUR |
|
BNP |
|
10/12/12 |
|
|
804,423 |
|
|
1,037,035 |
|
|
1,033,824 |
|
|
— |
|
|
3,211 |
|
|
EUR |
|
BRC |
|
10/29/12 |
|
|
337,688 |
|
|
435,000 |
|
|
434,060 |
|
|
— |
|
|
940 |
|
|
EUR |
|
CIT |
|
10/29/12 |
|
|
680,476 |
|
|
837,721 |
|
|
874,677 |
|
|
36,956 |
|
|
— |
|
|
EUR |
|
ING |
|
11/20/12 |
|
|
287,617 |
|
|
362,115 |
|
|
369,785 |
|
|
7,670 |
|
|
— |
|
|
EUR |
|
JPM |
|
10/02/12 |
|
|
383,780 |
|
|
480,877 |
|
|
493,177 |
|
|
12,300 |
|
|
— |
|
|
EUR |
|
JPM |
|
11/26/12 |
|
|
570,279 |
|
|
751,000 |
|
|
733,244 |
|
|
— |
|
|
17,756 |
|
|
EUR |
|
JPM |
|
11/26/12 |
|
|
1,018,138 |
|
|
1,268,661 |
|
|
1,309,086 |
|
|
40,425 |
|
|
— |
|
|
EUR |
|
UBS |
|
12/03/12 |
|
|
267,453 |
|
|
345,421 |
|
|
343,907 |
|
|
— |
|
|
1,514 |
|
|
GHS |
|
CIT |
|
10/04/12 |
|
|
156,000 |
|
|
79,592 |
|
|
82,147 |
|
|
2,555 |
|
|
— |
|
|
GHS |
|
SCB |
|
10/15/12 |
|
|
297,000 |
|
|
156,645 |
|
|
155,430 |
|
|
— |
|
|
1,215 |
|
|
HUF |
|
CIT |
|
10/12/12 |
|
|
59,771,806 |
|
|
268,682 |
|
|
269,016 |
|
|
334 |
|
|
— |
|
|
HUF |
|
CIT |
|
12/10/12 |
|
|
54,201,300 |
|
|
239,849 |
|
|
242,119 |
|
|
2,270 |
|
|
— |
|
|
HUF |
|
JPM |
|
10/09/12 |
|
|
47,424,720 |
|
|
212,897 |
|
|
213,533 |
|
|
636 |
|
|
— |
|
|
HUF |
|
UBS |
|
11/05/12 |
|
|
124,524,320 |
|
|
544,000 |
|
|
558,612 |
|
|
14,612 |
|
|
— |
|
|
IDR |
|
BRC |
|
10/03/12 |
|
|
2,251,500,000 |
|
|
237,000 |
|
|
235,238 |
|
|
— |
|
|
1,762 |
|
|
IDR |
|
BRC |
|
10/29/12 |
|
|
4,514,125,000 |
|
|
469,000 |
|
|
470,134 |
|
|
1,134 |
|
|
— |
|
|
IDR |
|
JPM |
|
10/03/12 |
|
|
2,131,360,000 |
|
|
224,000 |
|
|
222,685 |
|
|
— |
|
|
1,315 |
|
|
IDR |
|
JPM |
|
10/24/12 |
|
|
2,794,440,000 |
|
|
292,000 |
|
|
291,212 |
|
|
— |
|
|
788 |
|
|
IDR |
|
JPM |
|
11/05/12 |
|
|
1,951,541,000 |
|
|
202,274 |
|
|
203,053 |
|
|
779 |
|
|
— |
|
|
IDR |
|
JPM |
|
01/03/13 |
|
|
4,382,860,000 |
|
|
451,841 |
|
|
452,334 |
|
|
493 |
|
|
— |
|
|
ILS |
|
BNP |
|
10/12/12 |
|
|
1,914,236 |
|
|
481,000 |
|
|
488,378 |
|
|
7,378 |
|
|
— |
|
|
ILS |
|
CIT |
|
10/10/12 |
|
|
1,811,571 |
|
|
452,000 |
|
|
462,226 |
|
|
10,226 |
|
|
— |
|
|
ILS |
|
CIT |
|
10/24/12 |
|
|
1,800,359 |
|
|
460,000 |
|
|
459,077 |
|
|
— |
|
|
923 |
|
|
ILS |
|
CIT |
|
11/13/12 |
|
|
1,817,589 |
|
|
454,000 |
|
|
463,038 |
|
|
9,038 |
|
|
— |
|
See Notes to Portfolio of Investments.
10
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2012 (unaudited) |
|
|
Forward Currency Purchase Contracts open at September 30, 2012 (continued):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency |
|
Counterparty |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
INR |
|
BNP |
|
11/09/12 |
|
|
19,968,750 |
|
$ |
355,000 |
|
$ |
375,814 |
|
$ |
20,814 |
|
$ |
— |
|
|
INR |
|
BRC |
|
11/15/12 |
|
|
6,360,330 |
|
|
123,000 |
|
|
119,568 |
|
|
— |
|
|
3,432 |
|
|
INR |
|
JPM |
|
10/04/12 |
|
|
19,285,500 |
|
|
344,692 |
|
|
365,563 |
|
|
20,871 |
|
|
— |
|
|
INR |
|
JPM |
|
10/15/12 |
|
|
25,947,000 |
|
|
465,000 |
|
|
490,749 |
|
|
25,749 |
|
|
— |
|
|
INR |
|
JPM |
|
11/05/12 |
|
|
14,126,460 |
|
|
266,035 |
|
|
266,060 |
|
|
25 |
|
|
— |
|
|
INR |
|
RBC |
|
10/05/12 |
|
|
54,941,480 |
|
|
982,063 |
|
|
1,041,225 |
|
|
59,162 |
|
|
— |
|
|
INR |
|
SCB |
|
03/18/13 |
|
|
18,696,760 |
|
|
337,000 |
|
|
344,198 |
|
|
7,198 |
|
|
— |
|
|
KRW |
|
JPM |
|
10/17/12 |
|
|
541,527,000 |
|
|
482,000 |
|
|
486,916 |
|
|
4,916 |
|
|
— |
|
|
KRW |
|
JPM |
|
11/13/12 |
|
|
1,087,371,500 |
|
|
961,000 |
|
|
976,389 |
|
|
15,389 |
|
|
— |
|
|
KRW |
|
RBC |
|
10/24/12 |
|
|
236,008,980 |
|
|
207,000 |
|
|
212,133 |
|
|
5,133 |
|
|
— |
|
|
KZT |
|
CIT |
|
11/08/12 |
|
|
39,882,500 |
|
|
265,000 |
|
|
265,258 |
|
|
258 |
|
|
— |
|
|
KZT |
|
CIT |
|
01/25/13 |
|
|
12,601,890 |
|
|
83,000 |
|
|
83,297 |
|
|
297 |
|
|
— |
|
|
KZT |
|
HSB |
|
12/24/12 |
|
|
28,093,975 |
|
|
185,500 |
|
|
186,180 |
|
|
680 |
|
|
— |
|
|
KZT |
|
HSB |
|
01/25/13 |
|
|
28,149,625 |
|
|
185,500 |
|
|
186,066 |
|
|
566 |
|
|
— |
|
|
MXN |
|
HSB |
|
10/11/12 |
|
|
6,831,421 |
|
|
531,000 |
|
|
530,257 |
|
|
— |
|
|
743 |
|
|
MXN |
|
UBS |
|
10/03/12 |
|
|
3,665,435 |
|
|
285,137 |
|
|
284,738 |
|
|
— |
|
|
399 |
|
|
MYR |
|
BRC |
|
10/04/12 |
|
|
818,069 |
|
|
261,648 |
|
|
267,609 |
|
|
5,961 |
|
|
— |
|
|
MYR |
|
BRC |
|
10/18/12 |
|
|
1,561,668 |
|
|
506,000 |
|
|
510,322 |
|
|
4,322 |
|
|
— |
|
|
MYR |
|
CIT |
|
10/09/12 |
|
|
4,891,873 |
|
|
1,573,000 |
|
|
1,599,643 |
|
|
26,643 |
|
|
— |
|
|
NGN |
|
CIT |
|
10/04/12 |
|
|
31,343,200 |
|
|
196,386 |
|
|
199,384 |
|
|
2,998 |
|
|
— |
|
|
NGN |
|
CIT |
|
10/10/12 |
|
|
21,150,000 |
|
|
132,072 |
|
|
134,594 |
|
|
2,522 |
|
|
— |
|
|
NGN |
|
CIT |
|
10/29/12 |
|
|
21,478,500 |
|
|
129,078 |
|
|
135,401 |
|
|
6,323 |
|
|
— |
|
|
NGN |
|
CIT |
|
01/28/13 |
|
|
21,478,500 |
|
|
125,130 |
|
|
132,707 |
|
|
7,577 |
|
|
— |
|
|
NGN |
|
CIT |
|
02/11/13 |
|
|
27,004,000 |
|
|
157,000 |
|
|
166,847 |
|
|
9,847 |
|
|
— |
|
|
NGN |
|
CIT |
|
04/23/13 |
|
|
29,338,800 |
|
|
166,698 |
|
|
175,935 |
|
|
9,237 |
|
|
— |
|
|
NGN |
|
CIT |
|
07/23/13 |
|
|
20,350,000 |
|
|
110,000 |
|
|
122,032 |
|
|
12,032 |
|
|
— |
|
|
NGN |
|
SCB |
|
10/15/12 |
|
|
78,104,400 |
|
|
488,000 |
|
|
497,041 |
|
|
9,041 |
|
|
— |
|
|
NGN |
|
SCB |
|
05/02/13 |
|
|
23,572,000 |
|
|
133,553 |
|
|
141,353 |
|
|
7,800 |
|
|
— |
|
|
PEN |
|
CIT |
|
10/26/12 |
|
|
1,247,699 |
|
|
479,000 |
|
|
479,585 |
|
|
585 |
|
|
— |
|
|
PLN |
|
BRC |
|
10/25/12 |
|
|
677,357 |
|
|
213,893 |
|
|
210,834 |
|
|
— |
|
|
3,059 |
|
|
PLN |
|
CIT |
|
12/27/12 |
|
|
1,274,325 |
|
|
392,000 |
|
|
393,916 |
|
|
1,916 |
|
|
— |
|
|
RON |
|
JPM |
|
11/13/12 |
|
|
2,914,569 |
|
|
813,444 |
|
|
820,352 |
|
|
6,908 |
|
|
— |
|
|
RSD |
|
BRC |
|
11/13/12 |
|
|
58,467,735 |
|
|
631,265 |
|
|
641,305 |
|
|
10,040 |
|
|
— |
|
|
RSD |
|
BRC |
|
12/12/12 |
|
|
18,228,485 |
|
|
199,491 |
|
|
197,535 |
|
|
— |
|
|
1,956 |
|
|
RSD |
|
CIT |
|
10/09/12 |
|
|
10,085,250 |
|
|
108,008 |
|
|
112,345 |
|
|
4,337 |
|
|
— |
|
|
RSD |
|
CIT |
|
10/17/12 |
|
|
15,222,000 |
|
|
167,165 |
|
|
168,965 |
|
|
1,800 |
|
|
— |
|
See Notes to Portfolio of Investments.
11
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2012 (unaudited) |
|
|
Forward Currency Purchase Contracts open at September 30, 2012 (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency |
|
Counterparty |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
RSD |
|
CIT |
|
11/13/12 |
|
|
24,423,300 |
|
$ |
255,916 |
|
$ |
267,888 |
|
$ |
11,972 |
|
$ |
— |
|
|
RUB |
|
BRC |
|
10/09/12 |
|
|
15,067,240 |
|
|
464,000 |
|
|
482,463 |
|
|
18,463 |
|
|
— |
|
|
RUB |
|
JPM |
|
10/05/12 |
|
|
12,022,020 |
|
|
362,956 |
|
|
385,198 |
|
|
22,242 |
|
|
— |
|
|
RUB |
|
JPM |
|
10/17/12 |
|
|
15,994,700 |
|
|
521,000 |
|
|
511,509 |
|
|
— |
|
|
9,491 |
|
|
RUB |
|
UBS |
|
11/13/12 |
|
|
15,417,173 |
|
|
478,000 |
|
|
490,877 |
|
|
12,877 |
|
|
— |
|
|
RUB |
|
UBS |
|
12/04/12 |
|
|
14,224,050 |
|
|
433,000 |
|
|
451,283 |
|
|
18,283 |
|
|
— |
|
|
RUB |
|
UBS |
|
06/25/13 |
|
|
13,005,200 |
|
|
363,375 |
|
|
399,200 |
|
|
35,825 |
|
|
— |
|
|
RUB |
|
UBS |
|
07/01/13 |
|
|
13,767,255 |
|
|
384,668 |
|
|
422,183 |
|
|
37,515 |
|
|
— |
|
|
SGD |
|
HSB |
|
10/24/12 |
|
|
879,550 |
|
|
718,000 |
|
|
716,692 |
|
|
— |
|
|
1,308 |
|
|
THB |
|
HSB |
|
10/29/12 |
|
|
29,374,572 |
|
|
933,000 |
|
|
952,466 |
|
|
19,466 |
|
|
— |
|
|
THB |
|
SCB |
|
11/27/12 |
|
|
7,385,140 |
|
|
238,000 |
|
|
238,965 |
|
|
965 |
|
|
— |
|
|
THB |
|
SCB |
|
12/17/12 |
|
|
15,013,680 |
|
|
484,000 |
|
|
485,157 |
|
|
1,157 |
|
|
— |
|
|
TRY |
|
JPM |
|
10/12/12 |
|
|
398,335 |
|
|
222,000 |
|
|
221,302 |
|
|
— |
|
|
698 |
|
|
TRY |
|
JPM |
|
10/12/12 |
|
|
890,372 |
|
|
492,000 |
|
|
494,663 |
|
|
2,663 |
|
|
— |
|
|
UGX |
|
CIT |
|
10/17/12 |
|
|
2,383,904,000 |
|
|
943,000 |
|
|
929,008 |
|
|
— |
|
|
13,992 |
|
|
UGX |
|
CIT |
|
10/18/12 |
|
|
179,417,000 |
|
|
71,000 |
|
|
69,899 |
|
|
— |
|
|
1,101 |
|
|
UYU |
|
CIT |
|
10/10/12 |
|
|
3,539,000 |
|
|
165,220 |
|
|
168,076 |
|
|
2,856 |
|
|
— |
|
|
ZAR |
|
BRC |
|
11/26/12 |
|
|
3,682,570 |
|
|
443,000 |
|
|
439,131 |
|
|
— |
|
|
3,869 |
|
|
ZAR |
|
CIT |
|
10/29/12 |
|
|
3,319,861 |
|
|
400,949 |
|
|
397,399 |
|
|
— |
|
|
3,550 |
|
|
ZAR |
|
CIT |
|
10/29/12 |
|
|
3,615,530 |
|
|
436,000 |
|
|
432,792 |
|
|
— |
|
|
3,208 |
|
|
ZAR |
|
CIT |
|
10/29/12 |
|
|
4,083,337 |
|
|
493,902 |
|
|
488,790 |
|
|
— |
|
|
5,112 |
|
|
ZAR |
|
CIT |
|
11/08/12 |
|
|
1,494,015 |
|
|
180,034 |
|
|
178,594 |
|
|
— |
|
|
1,440 |
|
|
ZAR |
|
JPM |
|
10/29/12 |
|
|
2,561,174 |
|
|
310,070 |
|
|
306,582 |
|
|
— |
|
|
3,488 |
|
|
ZAR |
|
JPM |
|
10/29/12 |
|
|
3,508,297 |
|
|
422,000 |
|
|
419,956 |
|
|
— |
|
|
2,044 |
|
|
ZAR |
|
JPM |
|
10/29/12 |
|
|
3,603,386 |
|
|
429,000 |
|
|
431,338 |
|
|
2,338 |
|
|
— |
|
|
ZAR |
|
JPM |
|
10/29/12 |
|
|
7,323,498 |
|
|
850,235 |
|
|
876,650 |
|
|
26,415 |
|
|
— |
|
|
ZMK |
|
CIT |
|
10/09/12 |
|
|
892,670,000 |
|
|
178,000 |
|
|
174,859 |
|
|
— |
|
|
3,141 |
|
|
ZMK |
|
CIT |
|
12/19/12 |
|
|
811,690,000 |
|
|
157,000 |
|
|
156,920 |
|
|
— |
|
|
80 |
|
|
ZMK |
|
SCB |
|
10/10/12 |
|
|
755,060,000 |
|
|
150,560 |
|
|
147,882 |
|
|
— |
|
|
2,678 |
|
|
ZMK |
|
SCB |
|
10/17/12 |
|
|
1,518,545,000 |
|
|
301,000 |
|
|
297,120 |
|
|
— |
|
|
3,880 |
|
|
ZMK |
|
SCB |
|
10/31/12 |
|
|
1,628,861,400 |
|
|
324,000 |
|
|
318,072 |
|
|
— |
|
|
5,928 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Forward Currency Purchase Contracts |
|
$ |
41,987,865 |
|
$ |
42,607,925 |
|
$ |
726,842 |
|
$ |
106,782 |
|
|||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See Notes to Portfolio of Investments.
12
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (continued) |
|
September 30, 2012 (unaudited) |
|
|
Forward Currency Sale Contracts open at September 30, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency |
|
Counterparty |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
BRL |
|
BRC |
|
10/02/12 |
|
|
2,379,331 |
|
$ |
1,153,000 |
|
$ |
1,173,674 |
|
$ |
— |
|
$ |
20,674 |
|
|
BRL |
|
BRC |
|
11/05/12 |
|
|
416,925 |
|
|
204,000 |
|
|
204,756 |
|
|
— |
|
|
756 |
|
|
CLP |
|
BNP |
|
10/11/12 |
|
|
220,223,600 |
|
|
439,480 |
|
|
463,617 |
|
|
— |
|
|
24,137 |
|
|
CZK |
|
JPM |
|
10/02/12 |
|
|
9,561,888 |
|
|
480,877 |
|
|
488,803 |
|
|
— |
|
|
7,926 |
|
|
EUR |
|
BNP |
|
10/12/12 |
|
|
112,620 |
|
|
144,000 |
|
|
144,736 |
|
|
— |
|
|
736 |
|
|
EUR |
|
BRC |
|
10/25/12 |
|
|
162,312 |
|
|
213,893 |
|
|
208,626 |
|
|
5,267 |
|
|
— |
|
|
EUR |
|
BRC |
|
11/13/12 |
|
|
495,741 |
|
|
631,265 |
|
|
637,320 |
|
|
— |
|
|
6,055 |
|
|
EUR |
|
BRC |
|
12/12/12 |
|
|
148,199 |
|
|
199,491 |
|
|
190,586 |
|
|
8,905 |
|
|
— |
|
|
EUR |
|
CIT |
|
10/09/12 |
|
|
85,000 |
|
|
108,008 |
|
|
109,237 |
|
|
— |
|
|
1,229 |
|
|
EUR |
|
CIT |
|
10/12/12 |
|
|
209,000 |
|
|
268,682 |
|
|
268,602 |
|
|
80 |
|
|
— |
|
|
EUR |
|
CIT |
|
10/17/12 |
|
|
129,000 |
|
|
167,165 |
|
|
165,796 |
|
|
1,369 |
|
|
— |
|
|
EUR |
|
CIT |
|
10/29/12 |
|
|
337,711 |
|
|
410,265 |
|
|
434,090 |
|
|
— |
|
|
23,825 |
|
|
EUR |
|
CIT |
|
11/13/12 |
|
|
198,000 |
|
|
255,916 |
|
|
254,547 |
|
|
1,369 |
|
|
— |
|
|
EUR |
|
CIT |
|
12/10/12 |
|
|
185,000 |
|
|
239,850 |
|
|
237,906 |
|
|
1,944 |
|
|
— |
|
|
EUR |
|
HSB |
|
12/04/12 |
|
|
873,259 |
|
|
1,095,066 |
|
|
1,122,902 |
|
|
— |
|
|
27,836 |
|
|
EUR |
|
ING |
|
11/20/12 |
|
|
97,462 |
|
|
121,318 |
|
|
125,305 |
|
|
— |
|
|
3,987 |
|
|
EUR |
|
ING |
|
11/20/12 |
|
|
808,554 |
|
|
994,210 |
|
|
1,039,545 |
|
|
— |
|
|
45,335 |
|
|
EUR |
|
JPM |
|
10/02/12 |
|
|
378,000 |
|
|
464,915 |
|
|
485,749 |
|
|
— |
|
|
20,834 |
|
|
EUR |
|
JPM |
|
10/09/12 |
|
|
168,000 |
|
|
212,897 |
|
|
215,903 |
|
|
— |
|
|
3,006 |
|
|
EUR |
|
JPM |
|
11/26/12 |
|
|
181,000 |
|
|
232,748 |
|
|
232,724 |
|
|
24 |
|
|
— |
|
|
EUR |
|
JPM |
|
11/26/12 |
|
|
191,678 |
|
|
246,000 |
|
|
246,453 |
|
|
— |
|
|
453 |
|
|
EUR |
|
JPM |
|
11/26/12 |
|
|
648,763 |
|
|
817,896 |
|
|
834,157 |
|
|
— |
|
|
16,261 |
|
|
EUR |
|
JPM |
|
11/26/12 |
|
|
821,447 |
|
|
1,029,528 |
|
|
1,056,188 |
|
|
— |
|
|
26,660 |
|
|
EUR |
|
UBS |
|
12/03/12 |
|
|
343,071 |
|
|
433,000 |
|
|
441,141 |
|
|
— |
|
|
8,141 |
|
|
HUF |
|
CIT |
|
12/10/12 |
|
|
56,871,375 |
|
|
255,000 |
|
|
254,047 |
|
|
953 |
|
|
— |
|
|
HUF |
|
JPM |
|
10/09/12 |
|
|
75,637,100 |
|
|
329,000 |
|
|
340,561 |
|
|
— |
|
|
11,561 |
|
|
IDR |
|
JPM |
|
10/03/12 |
|
|
4,382,860,000 |
|
|
457,024 |
|
|
457,923 |
|
|
— |
|
|
899 |
|
|
ILS |
|
BNP |
|
10/24/12 |
|
|
1,761,680 |
|
|
437,586 |
|
|
449,214 |
|
|
— |
|
|
11,628 |
|
|
INR |
|
JPM |
|
10/04/12 |
|
|
5,159,040 |
|
|
96,000 |
|
|
97,791 |
|
|
— |
|
|
1,791 |
|
|
INR |
|
JPM |
|
10/04/12 |
|
|
14,126,460 |
|
|
267,041 |
|
|
267,772 |
|
|
— |
|
|
731 |
|
|
JPY |
|
HSB |
|
11/05/12 |
|
|
15,064,110 |
|
|
191,412 |
|
|
193,084 |
|
|
— |
|
|
1,672 |
|
|
JPY |
|
SCB |
|
11/26/12 |
|
|
97,327,303 |
|
|
1,246,000 |
|
|
1,247,700 |
|
|
— |
|
|
1,700 |
|
|
MXN |
|
HSB |
|
10/11/12 |
|
|
14,891,076 |
|
|
1,098,000 |
|
|
1,155,849 |
|
|
— |
|
|
57,849 |
|
|
MXN |
|
JPM |
|
10/31/12 |
|
|
5,845,112 |
|
|
438,355 |
|
|
452,802 |
|
|
— |
|
|
14,447 |
|
|
MXN |
|
UBS |
|
10/03/12 |
|
|
3,665,435 |
|
|
274,000 |
|
|
284,738 |
|
|
— |
|
|
10,738 |
|
|
MXN |
|
UBS |
|
01/02/13 |
|
|
4,254,947 |
|
|
328,000 |
|
|
327,600 |
|
|
400 |
|
|
— |
|
See Notes to Portfolio of Investments.
13
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Portfolio of Investments (concluded) |
|
September 30, 2012 (unaudited) |
|
|
Forward Currency Sale Contracts open at September 30, 2012 (concluded):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency |
|
Counterparty |
|
Expiration |
|
Foreign |
|
U.S. $ Cost |
|
U.S. $ |
|
Unrealized |
|
Unrealized |
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||||||
|
RON |
|
ING |
|
10/10/12 |
|
|
1,297,068 |
|
$ |
363,681 |
|
$ |
366,745 |
|
$ |
— |
|
$ |
3,064 |
|
|
RUB |
|
BRC |
|
10/05/12 |
|
|
9,003,193 |
|
|
277,000 |
|
|
288,472 |
|
|
— |
|
|
11,472 |
|
|
RUB |
|
BRC |
|
10/05/12 |
|
|
30,064,335 |
|
|
966,000 |
|
|
963,294 |
|
|
2,706 |
|
|
— |
|
|
TRY |
|
BRC |
|
07/10/13 |
|
|
78,512 |
|
|
40,381 |
|
|
41,944 |
|
|
— |
|
|
1,563 |
|
|
TRY |
|
CIT |
|
07/10/13 |
|
|
613,301 |
|
|
315,322 |
|
|
327,643 |
|
|
— |
|
|
12,321 |
|
|
TRY |
|
JPM |
|
02/28/13 |
|
|
714,680 |
|
|
381,000 |
|
|
389,469 |
|
|
— |
|
|
8,469 |
|
|
ZAR |
|
CIT |
|
10/29/12 |
|
|
3,347,733 |
|
|
407,490 |
|
|
400,736 |
|
|
6,754 |
|
|
— |
|
|
ZAR |
|
CIT |
|
10/29/12 |
|
|
3,441,327 |
|
|
410,048 |
|
|
411,940 |
|
|
— |
|
|
1,892 |
|
|
ZAR |
|
CIT |
|
10/29/12 |
|
|
13,262,208 |
|
|
1,540,416 |
|
|
1,587,535 |
|
|
— |
|
|
47,119 |
|
|
ZAR |
|
CIT |
|
11/08/12 |
|
|
1,494,015 |
|
|
180,447 |
|
|
178,594 |
|
|
1,853 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Total Forward Currency Sale Contracts |
|
$ |
20,862,673 |
|
$ |
21,267,816 |
|
|
31,624 |
|
|
436,767 |
|
|||||||
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross unrealized appreciation/depreciation
on Forward Currency |
|
$ |
758,466 |
|
$ |
543,549 |
|
|||||||||||||
|
|
|
|
|
|||||||||||||||||
|
|
|
|
|
Currency Abbreviations: |
||
|
BRL |
— |
Brazilian Real |
|
CLP |
— |
Chilean Peso |
|
CNY |
— |
Chinese Renminbi |
|
COP |
— |
Colombian Peso |
|
CZK |
— |
Czech Koruna |
|
DOP |
— |
Dominican Republic Peso |
|
EUR |
— |
Euro |
|
GHS |
— |
Ghanaian Cedi |
|
HUF |
— |
Hungarian Forint |
|
IDR |
— |
Indonesian Rupiah |
|
ILS |
— |
Israeli Shekel |
|
INR |
— |
Indian Rupee |
|
JPY |
— |
Japanese Yen |
|
KRW |
— |
South Korean Won |
|
KZT |
— |
Kazakhstan Tenge |
|
|
|
|
|
MXN |
— |
Mexican New Peso |
|
MYR |
— |
Malaysian Ringgit |
|
NGN |
— |
Nigerian Naira |
|
PEN |
— |
Peruvian New Sol |
|
PLN |
— |
Polish Zloty |
|
RON |
— |
New Romanian Leu |
|
RSD |
— |
Serbian Dinar |
|
RUB |
— |
Russian Ruble |
|
SGD |
— |
Singapore Dollar |
|
THB |
— |
Thai Baht |
|
TRY |
— |
New Turkish Lira |
|
UGX |
— |
Ugandan Shilling |
|
UYU |
— |
Uruguayan Peso |
|
ZAR |
— |
South African Rand |
|
ZMK |
— |
Zambian Kwacha |
|
|
||
|
|
|
|
|
Counterparty Abbreviations: |
||
|
BNP |
— |
BNP Paribas SA |
|
BRC |
— |
Barclays Bank PLC |
|
CIT |
— |
Citibank NA |
|
HSB |
— |
HSBC Bank USA |
|
ING |
— |
ING Bank NV |
|
JPM |
— |
JPMorgan Chase Bank |
|
RBC |
— |
Royal Bank of Canada |
|
SCB |
— |
Standard Chartered Bank |
|
UBS |
— |
UBS AG |
See Notes to Portfolio of Investments.
14
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Notes to Portfolio of Investments |
|
September 30, 2012 (unaudited) |
|
|
|
|
|
|
(a) |
Segregated security for forward currency contracts. |
|
|
|
|
(b) |
Pursuant to Rule 144A under the Securities Act of 1933, the security may only be traded among “qualified institutional buy-ers.” At September 30, 2012, this security amounted to 1.4% of net assets of the Fund, and is considered to be liquid. |
|
|
|
|
(c) |
Security valued using Level 2 inputs under accounting principles generally accepted in the United States of America (“GAAP”) hierarchy. Security was valued based on reference to a similar security from the same issuer which was trading on an active market. |
|
|
|
|
(d) |
Principal amount denominated in respective country’s currency. |
|
|
|
|
(e) |
For federal income tax purposes, the aggregate cost was $104,826,272, aggregate gross unrealized appreciation was $7,296,812, aggregate gross unrealized depreciation was $5,110,174, and the net unrealized appreciation was $2,186,638. |
Security Abbreviations:
|
|
|
|
|
ADR |
— |
American Depositary Receipt |
|
GDR |
— |
Global Depositary Receipt |
|
NTN-B |
— |
Brazil Sovereign “Nota do Tesouro Nacional” Series B |
|
REIT |
— |
Real Estate Investment Trust |
|
SDR |
— |
Swedish Depositary Receipt |
|
|
|
|
|
Portfolio holdings by industry (as percentage of net assets): |
|
|
|
Agriculture |
3.5 |
% |
|
Alcohol & Tobacco |
1.3 |
|
|
Automotive |
3.5 |
|
|
Banking |
7.7 |
|
|
Chemicals |
1.2 |
|
|
Commercial Services |
1.0 |
|
|
Construction & Engineering |
1.6 |
|
|
Consumer Products |
1.9 |
|
|
Electric |
2.3 |
|
|
Energy Integrated |
9.2 |
|
|
Energy Services |
1.4 |
|
|
Financial Services |
4.6 |
|
|
Food & Beverages |
2.8 |
|
|
Gas Utilities |
0.9 |
|
|
Health Services |
0.8 |
|
|
Housing |
1.9 |
|
|
Insurance |
8.4 |
|
|
Leisure & Entertainment |
2.2 |
|
|
Manufacturing |
4.8 |
|
|
Medical Products |
1.0 |
|
|
Metals & Mining |
4.9 |
|
|
Pharmaceutical & Biotechnology |
5.3 |
|
|
Real Estate |
6.4 |
|
|
Retail |
0.2 |
|
|
Semiconductors & Components |
3.7 |
|
|
Technology Hardware |
1.5 |
|
|
Telecommunications |
11.2 |
|
|
Transportation |
4.2 |
|
|
|
||
|
Subtotal |
99.4 |
|
|
Foreign Government Obligations |
14.0 |
|
|
Short-Term Investment |
0.4 |
|
|
|
||
|
Total Investments |
113.8 |
% |
|
|
15
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Notes to Portfolio of Investments (continued) |
|
September 30, 2012 (unaudited) |
|
|
Valuation of Investments:
Market values for securities listed on the NYSE, NASDAQ national market or other U.S. or foreign exchanges or markets are generally based on the last reported sales price on the exchange or market on which the security is principally traded, generally as of the close of regular trading on the NYSE (normally 4:00 p.m. Eastern time) on each valuation date; securities not traded on the valuation date are valued at the most recent quoted bid price. The Fund values NASDAQ-traded securities at the NASDAQ Official Closing Price, which may not be the last reported sales price in certain instances. Forward currency contracts are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s net asset value.
Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by independent pricing services which are based primarily on institutional trading in similar groups of securities, or by using brokers’ quotations or a matrix system which considers such factors as other security prices, yields and maturities. Debt securities maturing in 60 days or less are valued at amortized cost, except where to do so would not accurately reflect their fair value, in which case such securities are valued at fair value as determined by, or in accordance with procedures approved by, the Board of Directors (the “Board”).
The Valuation Committee of the Investment Manager may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s analysts also will be considered.
If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when the Fund’s net asset value is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Board. The fair value of foreign securities may be determined with the assistance of an independent pricing service, using correlations between the movement of prices of such securities and indices of domestic securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. The effect of using fair value pricing is that the net asset value of the Fund will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ net asset values. Foreign securities may trade on days when the Fund is not open for business, thus affecting the value of the Fund’s assets on days when the Fund shareholders may not be able to buy or sell Fund shares.
Fair Value Measurements:
Fair value is defined as the price that the Fund would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs
16
|
|
|
Lazard World Dividend & Income Fund, Inc. |
|
Notes to Portfolio of Investments (continued) |
|
September 30, 2012 (unaudited) |
|
|
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.
The following table summarizes the valuation of the Fund’s investments by each fair value hierarchy level as of September 30, 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Description |
|
Unadjusted |
|
Significant |
|
Significant |
|
Balance as of |
|
||||
|
|
|
|
|
|
|||||||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Stocks*: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Russia |
|
$ |
3,353,964 |
|
$ |
1,329,120 |
|
$ |
— |
|
$ |
4,683,084 |
|
|
Other |
|
|
87,824,077 |
|
|
— |
|
|
— |
|
|
87,824,077 |
|
|
Preferred Stock* |
|
|
930,869 |
|
|
— |
|
|
— |
|
|
930,869 |
|
|
Foreign Government Obligations* |
|
|
— |
|
|
13,158,618 |
|
|
— |
|
|
13,158,618 |
|
|
Short-Term Investment |
|
|
— |
|
|
416,262 |
|
|
— |
|
|
416,262 |
|
|
Other Financial Instruments** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency Contracts |
|
|
— |
|
|
758,466 |
|
|
— |
|
|
758,466 |
|
|
|
|
|
|
|
|
||||||||
|
Total |
|
$ |
92,108,910 |
|
$ |
15,662,466 |
|
$ |
— |
|
$ |
107,771,376 |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Financial Instruments** |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward Currency Contracts |
|
$ |
— |
|
$ |
(543,549 |
) |
$ |
— |
|
$ |
(543,549 |
) |
|
|
|
|
|
|
|
||||||||
|
|
|
|
* |
Please refer to Portfolio of Investments (pages 7 through 9) and Notes to Portfolio of Investments (page 15) for portfolio holdings by country and industry. |
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|
** |
Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation/depreciation. |
17
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Lazard World Dividend & Income Fund, Inc. |
|
Notes to Portfolio of Investments (concluded) |
|
September 30, 2012 (unaudited) |
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|
The foreign government obligations included in Level 2 were valued on the basis of prices provided by independent pricing services. The forward currency contracts included in Level 2 were valued using quotations provided by an independent pricing service. The short-term investment included in Level 2 (a pooled investment fund) was valued at the fund’s net asset value.
In connection with the periodic implementation of fair value pricing procedures with respect to foreign securities, certain securities are transferred from Level 1 to Level 2 and revert to Level 1 when the fair value pricing procedure triggers are no longer met. There were no significant transfers into or out of Levels 1, 2 or 3 during the period ended September 30, 2012.
For further information regarding security characteristics see Portfolio of Investments.
18
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Lazard World Dividend & Income Fund, Inc. |
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Dividend Reinvestment Plan |
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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:
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(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. |
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(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.
19
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Lazard World Dividend & Income Fund, Inc. |
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Board of Directors and Officers Information |
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(unaudited) |
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Name (Age) |
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Position(s) |
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Principal Occupation(s) and Other Public
Company |
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Board of Directors: |
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Class I — Directors with Term Expiring in 2013 |
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Independent Directors: |
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Leon M. Pollack (71) |
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Director |
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Private Investor |
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Robert M. Solmson (65) |
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Director |
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Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present) |
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Interested Director: |
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Charles L. Carroll (52) |
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Chief Executive Officer, |
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Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present) |
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Class II — Directors with Term Expiring in 2014 |
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Independent Directors: |
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Kenneth S. Davidson (67) |
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Director |
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Davidson Capital Management Corporation, an investment manager, President (1978 – present) |
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Balestra Capital, Ltd., an investment manager and adviser, Senior Advisor (July 2012 – present) |
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Aquiline Holdings LLC, an investment manager, Partner (2006 – June 2012) |
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Nancy A. Eckl (50) |
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Director |
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College Retirement Equities Fund (eight accounts), Trustee (2007 – present) |
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TIAA-CREF Funds (57 funds) and TIAA-CREF Life Funds (10 funds), Trustee (2007 – present) |
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TIAA Separate Account VA-1, Member of the Management Committee (2007 – present) |
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American Beacon Advisors, Inc. (“American Beacon”) and certain funds advised by American Beacon, Vice President (1990 – 2006) |
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Lester Z. Lieberman (82) |
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Director |
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Private Investor |
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Class III — Directors with Term Expiring in 2015 |
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Independent Director: |
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Richard Reiss, Jr. (68) |
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Director |
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Georgica Advisors LLC, an investment manager, Chairman (1997 – present) |
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O’Charley’s, Inc., a restaurant chain, Director (1984 – present) |
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Interested Director: |
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Ashish Bhutani (52) |
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Director |
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Investment
Manager, Chief Executive Officer
(2004 – present) |
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(1) |
Each Director also serves as a Director for each 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. and Lazard Alternative Strategies 1099 Fund, closed-end registered management investment companies advised by an affiliate of the Investment Manager. |
20
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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) Held During the Past Five Years |
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Officers(2): |
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Nathan A. Paul (39) |
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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 (54) |
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Treasurer |
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Vice President of the Investment Manager |
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Brian D. Simon (50) |
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Chief Compliance Officer |
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Managing Director (since February 2011, previously Director) of the Investment Manager and Chief Compliance Officer (since January 2009) of the Investment Manager and the Fund |
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Tamar Goldstein (37) |
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Assistant Secretary |
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Senior Vice President (since February 2012, previously Vice President and Counsel) of the Investment Manager |
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Cesar A. Trelles (37) |
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Assistant Treasurer |
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Vice President (since February 2011, previously 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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|
(2) |
In addition to Charles L. Carroll, President, whose information is included in the Class I Interested Director section. |
21
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|
|
Lazard World Dividend & Income Fund, Inc. |
|
30 Rockefeller Plaza |
|
New York, New York 10112-6300 |
|
Telephone: 800-823-6300 |
|
http://www.LazardNet.com |
|
|
|
Investment Manager |
|
Lazard Asset Management LLC |
|
30 Rockefeller Plaza |
|
New York, New York 10112-6300 |
|
Telephone: 800-823-6300 |
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|
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Custodian |
|
State Street Bank and Trust Company |
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One Lincoln Street |
|
Boston, Massachusetts 02111 |
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|
|
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 |
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|
|
Independent Registered Public Accounting Firm |
|
Deloitte & Touche LLP |
|
Two World Financial Center |
|
New York, New York 10281-1414 |
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|
|
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.