N-Q 1 c82879_nq.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

 

Investment Company Act file number 811-21751

 

Lazard World Dividend & Income Fund, Inc.

(Exact name of Registrant as specified in charter)

 

30 Rockefeller Plaza

New York, New York 10112

(Address of principal executive offices) (Zip code)

 

Nathan A. Paul, Esq.

Lazard Asset Management LLC

30 Rockefeller Plaza

New York, New York 10112

(Name and address of agent for service)

 

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

 

Date of fiscal year end: 12/31

 

Date of reporting period: 9/30/2015

 

Item 1. Schedule of Investments.

 

Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments
September 30, 2015 (unaudited)

 

Description  Shares   Value 
Common Stocks — 100.8%          
Australia — 3.2%          
Asaleo Care, Ltd.   720,749   $908,027 
DUET Group   562,671    854,430 
Spotless Group Holdings, Ltd.   430,548    655,132 
         2,417,589 
Austria — 1.1%          
UNIQA Insurance Group AG   100,515    870,533 
Brazil — 3.2%          
Ambev SA   164,600    806,289 
Banco do Brasil SA   175,717    673,704 
Grendene SA   127,900    568,767 
Natura Cosmeticos SA   74,600    366,931 
         2,415,691 
Canada — 1.2%          
Alaris Royalty Corp.   45,900    927,287 
China — 5.8%          
Agricultural Bank of China, Ltd., Class H   4,174,000    1,580,991 
China Construction Bank Corp., Class H   2,035,180    1,363,260 
China Shenhua Energy Co., Ltd., Class H   300,500    463,048 
Huaneng Power International, Inc. Class H   528,000    574,284 
Industrial & Commercial Bank of China, Ltd., Class H   680,440    394,491 
         4,376,074 
France — 8.2%          
AXA SA   56,873    1,380,714 
Rexel SA   55,726    685,267 
Societe Television Francaise 1   54,258    763,118 
Total SA   39,585    1,784,693 
Vivendi SA   69,348    1,641,810 
         6,255,602 
Germany — 1.7%          
RTL Group SA   14,780    1,272,291 
Hong Kong — 0.9%          
BOC Hong Kong Holdings, Ltd.   239,500    706,916 
Ireland — 1.0%          
Seagate Technology PLC   17,271    773,741 
Israel — 2.9%          
Bezeq The Israeli Telecommunication Corp., Ltd.   1,140,481    2,181,605 
Italy — 2.5%          
Eni SpA   68,699    1,080,934 
Snam SpA   162,935    838,498 
         1,919,432 
Description  Shares   Value 
Japan — 0.8%          
Yumeshin Holdings Co., Ltd.   103,600   $615,378 
Macau — 1.8%          
Sands China, Ltd.   462,400    1,403,368 
Mexico — 1.1%          
Fibra Uno Administracion SA de CV REIT   394,200    814,055 
Norway — 1.5%          
Telenor ASA   62,128    1,162,178 
Russia — 1.1%          
Mobile TeleSystems PJSC Sponsored ADR   120,680    871,310 
South Africa — 1.9%          
Vodacom Group, Ltd.   144,047    1,431,653 
Sweden — 1.8%          
Swedbank AB, A Shares   60,167    1,330,748 
Switzerland — 1.4%          
Cembra Money Bank AG   18,093    1,070,570 
Taiwan — 8.6%          
Chicony Electronics Co., Ltd.   267,330    618,298 
Hon Hai Precision Industry Co., Ltd.   313,950    821,202 
Radiant Opto-Electronics Corp.   284,660    887,933 
Siliconware Precision Industries Co., Ltd.   1,773,000    2,201,054 
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR   96,085    1,993,764 
         6,522,251 
Thailand — 1.6%          
Krung Thai Bank Public Co. Ltd. NVDR   1,473,800    695,148 
Pruksa Real Estate Public Co. Ltd. (a)   660,600    523,275 
         1,218,423 
United Kingdom — 8.1%          
Amec Foster Wheeler PLC   58,245    632,898 
Anglo American PLC   116,298    972,912 
Infinis Energy PLC   434,507    884,932 
Pearson PLC   53,965    922,320 
Pennon Group PLC   34,681    408,534 
UBM PLC   139,580    1,027,804 
Vodafone Group PLC   417,422    1,319,904 
        6,169,304 
United States — 39.4%          
Artisan Partners Asset Management, Inc., Class A   30,224    1,064,792 
Blackstone Mortgage Trust, Inc., Class A   83,859    2,301,091 
CBL & Associates Properties, Inc. REIT   44,185    607,544 
Cisco Systems, Inc.   88,092    2,312,415 
ConocoPhillips   47,886    2,296,613 
Eaton Corp. PLC   14,400    738,720 

 
Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (continued)
September 30, 2015 (unaudited)

 

 

Description  Shares   Value 
International Business Machines Corp.   6,150   $891,566 
International Paper Co.   24,157    912,893 
Kinder Morgan, Inc.   87,221    2,414,277 
Kohl’s Corp.   21,984    1,018,079 
LaSalle Hotel Properties REIT   50,231    1,426,058 
Lexington Realty Trust REIT   84,936    687,982 
Maxim Integrated Products, Inc.   48,641    1,624,609 
Medical Properties Trust, Inc. REIT   41,785    462,142 
PacWest Bancorp   66,551    2,849,048 
Pattern Energy Group, Inc.   42,977    820,431 
People’s United Financial, Inc.   91,070    1,432,531 
Pfizer, Inc.   42,842    1,345,667 
QUALCOMM, Inc.   19,488    1,047,090 
The Procter & Gamble Co.   19,776    1,422,686 
Tronox, Ltd., Class A   8,475    37,036 
Verizon Communications, Inc.   17,540    763,165 
Viacom, Inc., Class B   21,429    924,661 
WP Glimcher, Inc. REIT   51,400    599,324 
        30,000,420 
Total Common Stocks
(Identified cost $95,562,855)		       76,726,419 
Preferred Stocks — 1.6%          
United States — 1.6%          
Capital One Financial Corp., Series B   19,596    485,197 
JPMorgan Chase & Co., Series P   14,279    343,838 
Regions Financial Corp., Series A   16,084    409,177 
Total Preferred Stocks
(Identified cost $1,122,644)		       1,238,212 
Description  Principal
Amount
(000) (b)		   Value 
Foreign Government Obligations — 10.9%          
Brazil — 0.6%          
Brazil NTN-B:          
6.00%, 08/15/16   273   $184,809 
6.00%, 08/15/18   460    302,215 
        487,024 
Colombia — 0.1%          
Republic of Colombia,
12.00%, 10/22/15		   188,000    61,067 
Hungary — 2.5%          
Hungary Government Bonds:          
4.00%, 04/25/18   198,000    751,397 
7.50%, 11/12/20   257,210    1,138,294 
        1,889,691 
Indonesia — 0.8%          
Indonesia Government Bond,
7.875%, 04/15/19		   9,937,000    649,466 
Description  Principal
Amount
(000) (b)		   Value 
Mexico — 3.4%          
Mexican Bonos:          
4.75%, 06/14/18   8,700   $ 516,544 
6.50%, 06/10/21   15,800    978,692 
Mexican Udibonos,
2.50%, 12/10/20		   17,788    1,066,538 
        2,561,774 
Romania — 0.6%          
Romania Government Bonds:          
5.85%, 04/26/23   1,150    337,651 
5.80%, 07/26/27   380    111,501 
        449,152 
Serbia — 1.0%          
Serbia Treasury Bonds:          
10.00%, 03/20/21   33,930    350,311 
10.00%, 06/05/21   42,530    440,471 
        790,782 
South Africa — 0.9%          
Republic of South Africa:          
8.00%, 12/21/18   1,849    134,821 
7.25%, 01/15/20   7,480    526,859 
        661,680 
Uganda — 0.4%          
Uganda Government Bond,
12.875%, 05/19/16		   742,700    192,337 
Uganda Treasury Bill,
0.00%, 10/29/15		   528,900    141,930 
        334,267 
Uruguay — 0.3%          
Republica Orient Uruguay,
5.00%, 09/14/18		   6,883    230,593 
Zambia — 0.3%          
Zambia Government Bond,
11.00%, 05/26/20		   4,320    233,318 
Total Foreign Government Obligations
(Identified cost $9,602,306)		       8,348,814 

 

Description  Shares   Value 
Short-Term Investment — 6.0%          
State Street Institutional Treasury Money Market Fund
(Identified cost $4,547,452)		   4,547,452   $ 4,547,452 

 
Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (continued)
September 30, 2015 (unaudited)

 

Total Investments — 119.3%
(Identified cost $110,835,257) (c), (d)		  $90,860,897 
      
Liabilities in Excess of Cash and Other Assets — (19.3)%   (14,707,132)
      
Net Assets — 100.0%  $76,153,765 

 
Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (continued)
September 30, 2015 (unaudited)

Forward Currency Purchase Contracts open at September 30, 2015:

Currency     Counterparty       Expiration
Date		       Foreign Currency
Amount		       US $ Cost
on Origination
Date		       US $
Current
Value		       Unrealized
Appreciation		       Unrealized
Depreciation		  
CLP     BNP       10/22/15       213,412,500     $ 315,000     $ 306,051     $ —     $ 8,949  
CLP     BNP       11/24/15       735,295,050       1,071,000       1,051,174       —       19,826  
CNH     HSB       04/14/16       4,673,978       728,000       720,817       —       7,183  
CNY     HSB       11/30/15       6,622,368       1,015,000       1,037,399       22,399       —  
DOP     CIT       10/07/15       21,267,180       456,084       468,521       12,437       —  
DOP     CIT       11/06/15       21,894,000       479,501       480,953       1,452       —  
DOP     CIT       11/12/15       7,787,700       169,778       170,891       1,113       —  
DOP     CIT       12/11/15       7,269,150       158,785       158,660       —       125  
DOP     CIT       06/30/16       10,975,140       228,554       229,827       1,273       —  
EGP     BNP       10/07/15       1,469,100       177,000       186,033       9,033       —  
EGP     BNP       10/08/15       1,452,500       175,000       183,620       8,620       —  
EGP     BNP       12/14/15       1,999,870       227,000       232,247       5,247       —  
EGP     BNP       03/08/16       2,086,100       230,000       225,652       —       4,348  
EUR     CIT       10/26/15       406,323       466,268       454,188       —       12,080  
EUR     CIT       01/13/16       408,984       450,925       457,864       6,939       —  
EUR     JPM       11/04/15       290,000       324,843       324,207       —       636  
EUR     JPM       11/04/15       475,000       535,871       531,029       —       4,842  
HUF     JPM       10/13/15       21,006,268       74,644       74,861       217       —  
HUF     JPM       10/13/15       114,369,029       406,393       407,583       1,190       —  
IDR     JPM       03/24/16       11,514,360,000       816,622       737,412       —       79,210  
INR     JPM       04/25/16       73,859,280       1,108,000       1,086,380       —       21,620  
INR     JPM       07/13/16       45,474,240       672,000       660,110       —       11,890  
INR     SCB       11/13/15       18,039,140       269,000       272,889       3,889       —  
JPY     CIT       10/01/15       52,822,073       440,394       440,313       —       81  
JPY     UBS       10/01/15       43,448,347       359,048       362,176       3,128       —  
KRW     CIT       10/15/15       1,183,765,230       993,000       998,235       5,235       —  
KZT     CIT       12/02/15       58,032,000       205,933       204,011       —       1,922  
KZT     CIT       06/06/16       64,496,000       232,000       208,396       —       23,604  
KZT     JPM       10/01/15       58,032,000       234,000       213,388       —       20,612  
KZT     JPM       03/03/16       60,116,000       226,000       202,426       —       23,574  
KZT     JPM       06/06/16       64,496,000       232,000       208,396       —       23,604  
PHP     SCB       11/25/15       36,378,000       774,000       775,635       1,635       —  
PLN     JPM       11/04/15       2,953,476       782,720       776,413       —       6,307  
RUB     UBS       10/09/15       5,301,835       77,000       80,981       3,981       —  
RUB     UBS       10/09/15       52,935,680       896,000       808,542       —       87,458  
RUB     UBS       12/03/15       23,994,000       344,000       360,228       16,228       —  
TRY     JPM       10/08/15       1,275,692       462,191       420,739       —       41,452  
TRY     JPM       11/04/15       1,701,800       573,055       556,580       —       16,475  
TRY     JPM       11/04/15       2,322,619       782,106       759,621       —       22,485  
TRY     JPM       11/05/15       2,491,519       876,000       814,612       —       61,388  
TRY     JPM       12/03/15       1,136,651       371,000       368,494       —       2,506  
TRY     JPM       12/03/15       1,175,402       389,000       381,057       —       7,943  
TRY     JPM       12/03/15       1,224,653       402,000       397,024       —       4,976  
UGX     SCB       10/19/15       492,878,000       132,316       132,614       298       —  
UYU     HSB       10/05/15       20,710,998       714,000       711,392       —       2,608  
ZAR     JPM       11/04/15       5,378,393       396,000       385,905       —       10,095  
ZAR     JPM       11/04/15       10,784,678       811,000       773,812       —       37,188  
 
Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (continued)
September 30, 2015 (unaudited)

Forward Currency Purchase Contracts open at September 30, 2015 (concluded):

Currency  Counterparty   Expiration
Date		   Foreign Currency
Amount		   US $ Cost
on Origination
Date		   US $
Current
Value		   Unrealized
Appreciation		   Unrealized
Depreciation		 
ZMW   BRC    02/23/16   1,517,122   $143,395   $118,130   $—   $25,265 
ZMW   BRC    02/23/16   2,121,840    252,000    165,216    —    86,784 
Total Forward Currency Purchase Contracts    $22,655,426   $22,082,704   $104,314   $677,036 
Forward Currency Sale Contracts open at September 30, 2015:                
Currency   Counterparty     Expiration
Date		    Foreign Currency
Amount		   US $ Cost
on Origination Date		   US $
Current
Value		   Unrealized
Appreciation		   Unrealized
Depreciation		 
BRL   CIT     02/18/16     704,363   $225,000   $169,703   $55,297   $— 
BRL   CIT     09/21/16     1,506,843    351,000    342,950    8,050    — 
CLP   BNP     10/22/15     277,505,500    398,000    397,966    34    — 
CNH   SCB     04/14/16     4,673,978    706,146    720,817    —    14,671 
COP   SCB     10/23/15     144,576,000    48,048    46,712    1,336    — 
EGP   BNP     10/07/15     1,469,100    180,924    186,033    —    5,109 
EGP   CIT     10/08/15     1,452,500    178,877    183,620    —    4,743 
EUR   JPM     10/26/15     312,501    353,048    349,314    3,734    — 
EUR   JPM     10/26/15     2,407,274    2,663,855    2,690,851    —    26,996 
EUR   JPM     11/04/15     508,000    573,055    567,922    5,133    — 
EUR   JPM     11/04/15     689,000    782,106    770,272    11,834    — 
EUR   JPM     11/04/15     696,000    782,720    778,098    4,622    — 
HUF   JPM     10/13/15     212,857,920    756,075    758,571    —    2,496 
JPY   SCB     11/18/15     84,375,986    679,334    703,736    —    24,402 
JPY   UBS     10/01/15     96,270,420    779,853    802,488    —    22,635 
JPY   UBS     11/18/15     43,448,347    359,264    362,380    —    3,116 
KZT   CIT     10/01/15     58,032,000    212,961    213,388    —    427 
MXN   BRC     10/23/15     1,140,967    67,517    67,377    140    — 
MXN   JPM     10/23/15     17,884,074    1,059,000    1,056,107    2,893    — 
RON   JPM     10/08/15     1,560,747    391,437    394,697    —    3,260 
RSD   CIT     01/13/16     30,105,700    281,756    276,816    4,940    — 
RSD   CIT     01/13/16     50,673,091    450,925    465,929    —    15,004 
TRY   JPM     10/08/15     1,275,692    454,728    420,739    33,989    — 
TRY   JPM     11/04/15     996,049    324,843    325,761    —    918 
TRY   JPM     11/04/15     1,646,635    535,871    538,538    —    2,667 
TRY   JPM     11/05/15     2,491,519    863,103    814,612    48,491    — 
UGX   SCB     10/19/15     554,860,000    149,558    149,291    267    — 
UYU   CIT     10/05/15     13,871,718    477,183    476,473    710    — 
UYU   JPM     10/05/15     6,839,280    236,000    234,919    1,081    — 
ZAR   CIT     11/04/15     2,344,843    172,575    168,245    4,330    — 
ZAR   CIT     11/04/15     7,425,787    557,904    532,808    25,096    — 
ZAR   JPM     11/04/15     10,447,712    737,000    749,634    —    12,634 
Total Forward Currency Sale Contracts    $16,789,666   $16,716,767    211,977    139,078 
           
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts  $316,291   $816,114 
 
Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (continued)
September 30, 2015 (unaudited)

 

Currency Abbreviations: 

BRL — Brazilian Real KRW — South Korean Won Counterparty Abbreviations:
CLP — Chilean Peso KZT — Kazakhstan Tenge BNP — BNP Paribas SA
CNH — Yuan Renminbi MXN — Mexican New Peso BRC — Barclays Bank PLC
CNY — Chinese Renminbi PHP — Philippine Peso CIT — Citibank NA
COP — Colombian Peso PLN — Polish Zloty HSB — HSBC Bank USA NA
DOP — Dominican Republic Peso RON — New Romanian Leu JPM — JPMorgan Chase Bank NA
EGP — Egyptian Pound RSD — Serbian Dinar SCB — Standard Chartered Bank
EUR — Euro RUB — Russian Ruble UBS — UBS AG
HUF — Hungarian Forint TRY — New Turkish Lira    
IDR — Indonesian Rupiah UGX — Ugandan Shilling    
INR — Indian Rupee UYU — Uruguayan Peso    
JPY — Japanese Yen ZAR — South African Rand    
    ZMW — Zambian Kwacha    
 
Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (continued)
September 30, 2015 (unaudited)

 

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

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

(c) For federal income tax purposes, the aggregate cost was $110,835,257, aggregate gross unrealized appreciation was $718,182, aggregate gross unrealized depreciation was $20,692,542, and the net unrealized depreciation was $19,974,360.

(d) Lazard World Dividend & Income Fund, Inc. (the “Fund”), at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.

 

Security Abbreviations:

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

 

Portfolio holdings by industry* (as a percentage of net assets):
Alcohol & Tobacco     1.1 %  
Banking     16.4    
Chemicals     0.1    
Commercial Services     1.7    
Construction & Engineering     0.8    
Electric     4.1    
Energy Exploration & Production     3.0    
Energy Integrated     4.4    
Energy Services     4.0    
Financial Services     3.7    
Forest & Paper Products     1.2    
Gas Utilities     1.1    
Household & Personal Products     3.5    
Housing     0.7    
Insurance     2.9    
Leisure & Entertainment     8.3    
Manufacturing     1.0    
Metals & Mining     1.3    
Pharmaceutical & Biotechnology     1.8    
Real Estate     9.1    
Retail     2.1    
Semiconductors & Components     8.8    
Technology Hardware     8.5    
Telecommunications     12.3    
Water     0.5    
Subtotal     102.4    
Foreign Government Obligations     10.9    
Short-Term Investment     6.0    
Total Investments     119.3 %  

 

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

 
Lazard World Dividend & Income Fund, Inc.
Portfolio of Investments (concluded)
September 30, 2015 (unaudited)

 

Valuation of Investments:

 

Net asset value (“NAV”) per share for the Fund is determined on each day the New York Stock Exchange (the “NYSE”) is open for business, generally as of the close of regular session trading on the NYSE (normally 4:00 p.m. Eastern time, the “Regular Closing Time”). When trading on the NYSE is unexpectedly closed prior to the Regular Closing Time, or an earlier scheduled close (such as on certain days around holidays when the NYSE is scheduled to close before 4:00 p.m.), and remains closed through the time of the Regular Closing Time (or an earlier scheduled close), the NAV of the Fund may nonetheless be calculated as of the Regular Closing Time (or an earlier scheduled close) if, in the judgment of Lazard Asset Management LLC (the “Investment Manager”), there is sufficient trading in other markets between the unexpected close and the Regular Closing Time (or an earlier scheduled close) for securities for which the NYSE is usually considered the primary market. NAV per share is determined by dividing the value of the total assets of the Fund, less all liabilities, by the total number of Fund shares outstanding.

 

Market values for securities listed on the NYSE, NASDAQ national market or other US or foreign exchanges or markets are generally based on the last reported sales price on the exchange or market on which the security is principally traded 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 generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s NAV.

 

Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by independent pricing services which are based on, among other things, trading in securities with similar characteristics, brokers’ quotations and/or a matrix system which considers such factors as other security prices, yields and maturities.

 

The Valuation Committee of the Investment Manager, which meets periodically and acts pursuant to delegated authority from the Board of Directors (the “Board”), may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio managers/analysts also will be considered.

 

If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when the Fund’s NAV is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Board. The fair value of non-US securities may be determined with the assistance of an independent pricing service using correlations between the movement of prices of such securities and indices of US securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. Non-US securities may trade on days when the Fund is not open for business, thus affecting the value of the Fund’s assets on days when Fund stockholders may not be able to buy or sell Fund shares.

 

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

 

Fair Value Measurements:

 

Fair value is defined as the price that the Fund would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of 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)

 

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

 

The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.

 

The following table summarizes the valuation of the Fund’s investments by each fair value hierarchy level as of September 30, 2015:

 

Description  Unadjusted
Quoted Prices in
Active Markets
for Identical
Investments
(Level 1)		   Significant Other
Observable
Inputs
(Level 2)		   Significant
Unobservable
Inputs
(Level 3)		   Balance as of
September 30, 2015		 
Assets:                    
Common Stocks                    
Taiwan  $1,993,764   $4,528,487   $—   $6,522,251 
Other   35,802,504    34,401,664    —    70,204,168 
Preferred Stocks   1,238,212    —    —    1,238,212 
Foreign Government Obligations   —    8,348,814    —    8,348,814 
Short-Term Investment   4,547,452    —    —    4,547,452 
Other Financial Instruments*                    
Forward Currency Contracts   —    316,291    —    316,291 
Total  $43,581,932   $47,595,256   $—   $91,177,188 
Liabilities:                    
Other Financial Instruments*                    
Forward Currency Contracts  $—   $(816,114)  $—   $(816,114)
* Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation/depreciation.

 

The common stock to which footnote (a) applies is included in Level 2 and was valued based on reference to a similar security which was trading on an active market. In connection with the periodic implementation of fair value pricing procedures with respect to non-US securities, certain equity securities (but not securities valued based on reference to a similar security trading on an active market) can transfer from Level 1 to Level 2 as a result of fair value pricing procedure triggers being met and would revert to Level 1 when the fair value pricing procedure triggers are no longer met. The Fund recognizes all transfers between levels as though they were transferred at the beginning of the reporting period. At September 30, 2015, securities valued at $4,206,737 were transferred from Level 2 to Level 1. There were no other transfers into or out of Levels 1, 2 or 3 during the period ended September 30, 2015.

 

Item 2. Controls and Procedures.

 

(a) The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

 

(b) There were no changes to the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

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

 

SIGNATURES

 

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

 

Lazard World Dividend & Income Fund, Inc.

 

By: /s/ Charles L. Carroll
  Charles L. Carroll
  Chief Executive Officer
   
Date:  November 27, 2015

 

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

 

By: /s/ Charles L. Carroll
  Charles L. Carroll
  Chief Executive Officer
   
Date:  November 27, 2015

 

By: /s/ Stephen St. Clair
  Stephen St. Clair
  Chief Financial Officer
   
Date:  November 27, 2015