N-Q 1 c88264_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 811-21511

 

Lazard Global Total Return and 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)

 

Mark R. Anderson, Esq.
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112
(Name and address of agent for service)

 

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

 

Date of fiscal year end: 12/31

 

Date of reporting period: 3/31/2017

 

Item 1. Schedule of Investments.

 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments

March 31, 2017 (unaudited)

 

Description  Shares   Fair
Value		 
Common Stocks  |  96.3%          
Brazil  |  2.0%          
Ambev SA   298,500   $1,739,168 
Cielo SA   176,400    1,595,185 
         3,334,353 
Canada  |  3.3%          
Canadian National Railway Co.   36,800    2,716,312 
National Bank of Canada   64,700    2,716,734 
         5,433,046 
China  |  1.5%          
Tencent Holdings, Ltd.   84,600    2,428,436 
Denmark  |  1.8%          
Carlsberg A/S, Class B   19,527    1,801,750 
Novo Nordisk A/S, Class B   33,166    1,140,226 
         2,941,976 
Finland  |  1.2%          
Sampo Oyj, A Shares   39,966    1,897,631 
Germany  |  3.3%          
Continental AG   13,829    3,031,695 
Symrise AG   36,415    2,421,754 
         5,453,449 
Hong Kong  |  1.4%          
AIA Group, Ltd.   359,600    2,266,625 
Ireland  |  1.9%          
Shire PLC   54,636    3,178,926 
Israel  |  0.2%          
Israel Discount Bank, Ltd., Class A (a)   119,541    280,679 
Japan  |  5.3%          
AEON Financial Service Co., Ltd.   96,200    1,819,027 
Daiwa House Industry Co., Ltd.   98,900    2,846,563 
Recruit Holdings Co., Ltd.   34,200    1,747,545 
Ryohin Keikaku Co., Ltd.   10,600    2,324,651 
         8,737,786 
Netherlands  |  1.6%          
Wolters Kluwer NV   61,932    2,573,662 
South Africa  |  0.7%          
Sanlam, Ltd.   228,696    1,147,988 
Sweden  |  2.6%          
Assa Abloy AB, Class B   128,529    2,637,619 
Hexagon AB, B Shares   39,500    1,586,964 
         4,224,583 
Switzerland  |  0.8%          
Julius Baer Group, Ltd.   27,300    1,362,905 
Description  Shares   Fair
Value		 
Taiwan  |  1.3%          
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR   65,200   $2,141,168 
United Kingdom  |  10.1%          
Ashtead Group PLC   94,091    1,947,692 
British American Tobacco PLC   27,012    1,790,623 
Coca-Cola European Partners PLC   34,845    1,313,308 
Compass Group PLC   112,652    2,122,534 
ConvaTec Group PLC   250,862    876,346 
Diageo PLC   85,462    2,448,061 
Prudential PLC   91,789    1,941,656 
RELX NV   138,707    2,577,007 
Unilever PLC   32,499    1,604,078 
         16,621,305 
United States  |  57.3%          
Accenture PLC, Class A   25,800    3,092,904 
Alphabet, Inc., Class A (a)   5,125    4,344,975 
Alphabet, Inc., Class C (a)   2,000    1,659,120 
Aon PLC   21,100    2,504,359 
Apple, Inc.   36,800    5,286,688 
Applied Materials, Inc.   68,985    2,683,516 
AutoZone, Inc. (a)   2,800    2,024,540 
Bank of America Corp.   103,600    2,443,924 
Biogen, Inc. (a)   5,590    1,528,418 
Cisco Systems, Inc.   84,700    2,862,860 
Comerica, Inc.   22,800    1,563,624 
Commerce Bancshares, Inc.   22,485    1,262,758 
Crown Holdings, Inc. (a)   31,055    1,644,362 
Eaton Corp. PLC   24,600    1,824,090 
eBay, Inc. (a)   26,300    882,891 
EOG Resources, Inc.   14,600    1,424,230 
Fidelity National Information Services, Inc.   26,100    2,078,082 
Five Below, Inc. (a)   39,480    1,709,879 
Honeywell International, Inc.   22,400    2,797,088 
Intercontinental Exchange, Inc.   47,100    2,819,877 
Johnson Controls International PLC   52,200    2,198,664 
Kellogg Co.   15,700    1,139,977 
Medtronic PLC   15,960    1,285,738 
Microsoft Corp.   56,575    3,726,029 
Molson Coors Brewing Co., Class B   23,900    2,287,469 
Monsanto Co.   15,300    1,731,960 
Motorola Solutions, Inc.   20,320    1,751,990 
PPG Industries, Inc.   14,885    1,564,116 
Quintiles IMS Holdings, Inc. (a)   27,300    2,198,469 
Red Hat, Inc. (a)   13,855    1,198,457 
Rockwell Automation, Inc.   16,110    2,508,488 
S&P Global, Inc.   18,400    2,405,616 


 

 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2017 (unaudited)

 

Description  Shares  
Fair
Value		 
Schlumberger, Ltd.   38,900   $3,038,090 
Snap-on, Inc.   9,500    1,602,365 
The Charles Schwab Corp.   57,800    2,358,818 
The Coca-Cola Co.   53,200    2,257,808 
Thermo Fisher Scientific, Inc.   14,900    2,288,640 
United Technologies Corp.   22,060    2,475,353 
Vantiv, Inc., Class A (a)   38,900    2,494,268 
Visa, Inc., Class A   27,710    2,462,588 
Welbilt, Inc. (a)   74,400    1,460,472 
Zoetis, Inc.   55,810    2,978,580 
         93,852,140 
           
Total Common Stocks
(Cost $142,619,280)		        157,876,658 

 

Description  Principal
Amount
(000) (b)		   Fair
Value		 
Foreign Government Obligations  |  14.8%          
Brazil  |  2.6%          
Brazil NTN-B:          
6.00%, 08/15/26   470   $470,286 
6.00%, 05/15/35   810    840,617 
Brazil NTN-F:          
10.00%, 01/01/21   2,739    879,878 
10.00%, 01/01/27   6,330    2,018,208 
         4,208,989 
Indonesia  |  1.2%          
Indonesia Government Bonds:          
8.25%, 07/15/21   10,321,000    810,518 
8.375%, 09/15/26   13,313,000    1,083,243 
         1,893,761 
Malaysia  |  1.5%          
Malaysia Government Bonds:          
3.314%, 10/31/17   4,740    1,071,065 
4.24%, 02/07/18   6,300    1,433,869 
         2,504,934 
Mexico  |  1.7%          
Mexican Bonos:          
6.50%, 06/10/21   39,180    2,062,539 
5.75%, 03/05/26   13,620    666,075 
         2,728,614 
Romania  |  0.9%          
Romania Government Bond,
5.85%, 04/26/23		   5,550    1,489,504 
Russia  |  2.2%          
Russia Government Bonds - OFZ:
7.50%, 08/18/21		   110,100    1,930,220 
Description  Principal
Amount
(000) (b)		   Fair
Value		 
7.05%, 01/19/28   104,580   $1,745,865 
         3,676,085 
Turkey  |  2.0%          
Turkey Government Bonds:          
10.50%, 01/15/20   6,600    1,801,428 
8.50%, 09/14/22   5,770    1,436,765 
         3,238,193 
Uganda  |  0.8%          
Uganda Government Bonds:          
16.375%, 09/05/19   1,594,900    453,468 
18.375%, 02/18/21   1,736,200    512,820 
16.50%, 05/13/21   1,097,100    307,853 
         1,274,141 
Uruguay  |  1.9%          
Republica Orient Uruguay,
5.00%, 09/14/18		   92,157    3,196,161 
           
Total Foreign Government Obligations
(Cost $23,641,386)		        24,210,382 

 

Description  Shares   Fair
Value		 
Short-Term Investment  |  2.6%          
State Street Institutional Treasury Money Market Fund, Premier Class, 0.53% (7 day yield)
(Cost $4,189,309)		   4,189,309   $4,189,309 
           
Total Investments  |  113.7%
(Cost $170,449,975) (c), (d)		       $186,276,349 
           
Liabilities in Excess of Cash and
Other Assets  |  (13.7)%		        (22,414,947)
           
Net Assets  |  100.0%       $163,861,402 


 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2017 (unaudited)

Forward Currency Contracts open at March 31, 2017:

 

Currency
Purchased		  Quantity   Currency
Sold		  Quantity   Counterparty  Settlement
Date		  Unrealized
Appreciation		   Unrealized
Depreciation		 
ARS   13,537,900   USD   864,765   BNP  04/03/17  $15,033   $— 
ARS   14,199,270   USD   859,000   BNP  05/02/17   53,266    — 
ARS   13,537,900   USD   879,536   CIT  04/03/17   263    — 
ARS   20,364,530   USD   1,284,828   CIT  05/02/17   23,540    — 
ARS   9,363,640   USD   572,000   CIT  05/24/17   23,367    — 
ARS   14,758,410   USD   879,000   CIT  09/29/17   4,846    — 
BRL   493,443   USD   155,000   CIT  04/20/17   2,029    — 
CLP   1,079,739,600   USD   1,633,000   HSB  04/24/17   1,619    — 
CNY   1,914,336   USD   276,000   HSB  04/06/17   1,742    — 
CNY   5,311,475   USD   767,000   HSB  04/06/17   3,617    — 
CNY   7,033,360   USD   1,013,000   HSB  05/12/17   5,166    — 
CNY   10,725,872   USD   1,552,000   HSB  05/26/17   —    546 
CNY   7,500,317   USD   1,083,000   HSB  06/06/17   1,205    — 
COP   1,227,023,000   USD   413,000   BNP  04/28/17   12,367    — 
COP   1,680,454,000   USD   566,000   BNP  04/28/17   16,557    — 
COP   2,396,485,000   USD   805,000   BNP  04/28/17   25,780    — 
COP   5,422,445,600   USD   1,807,000   SCB  04/12/17   76,890    — 
CZK   17,384,592   EUR   647,000   BNP  06/28/17   905    — 
CZK   21,060,000   EUR   780,000   CIT  05/03/17   2,750    — 
CZK   81,202,455   EUR   3,043,000   CIT  02/27/18   —    1,669 
DOP   38,626,840   USD   812,000   CIT  04/27/17   23,724    — 
EGP   3,257,800   USD   182,000   CIT  05/30/17   —    3,021 
EGP   9,003,150   USD   513,000   CIT  06/08/17   —    18,769 
EGP   15,100,800   USD   858,000   CIT  06/12/17   —    29,340 
EUR   796,000   HUF   246,760,000   BNP  05/02/17   —    3,553 
EUR   295,000   RON   1,335,377   JPM  08/01/17   2,926    — 
EUR   80,778   RSD   10,072,560   CIT  05/15/17   —    363 
EUR   1,612,000   RSD   201,322,680   CIT  05/15/17   —    9,961 
EUR   1,059,171   USD   1,152,900   CIT  05/15/17   —    20,872 
GHS   1,904,175   USD   403,000   BRC  07/17/17   11,104    — 
GHS   1,638,000   USD   364,000   CIT  04/06/17   16,480    — 
GHS   1,388,820   USD   293,000   JPM  06/09/17   16,775    — 
GHS   2,447,690   USD   511,000   SCB  05/08/17   45,880    — 
HUF   242,130,420   EUR   774,000   BNP  05/02/17   11,034    — 
HUF   695,971,540   USD   2,398,000   BNP  05/02/17   10,076    — 
HUF   309,642,225   USD   1,069,650   BNP  08/29/17   6,476    — 
IDR   9,446,280,000   USD   669,000   CIT  05/02/17   37,784    — 
IDR   9,711,520,500   USD   726,000   CIT  05/02/17   630    — 
IDR   7,183,120,000   USD   508,000   HSB  05/09/17   29,029    — 
INR   136,500,440   USD   2,077,000   HSB  05/23/17   11,190    — 
INR   81,352,875   USD   1,203,000   JPM  04/10/17   48,844    — 
INR   50,489,600   USD   736,000   JPM  04/17/17   40,161    — 
KES   90,393,600   USD   856,000   BRC  05/30/17   12,823    — 
KRW   1,382,439,240   USD   1,197,000   JPM  04/13/17   39,362    — 
KRW   906,533,500   USD   782,000   SCB  04/13/17   28,743    — 
KZT   239,810,000   USD   754,950   CIT  04/27/17   3,532    — 
 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2017 (unaudited)

Forward Currency Contracts open at March 31, 2017 (continued):

 

Currency
Purchased		  Quantity   Currency
Sold		  Quantity   Counterparty  Settlement
Date		  Unrealized
Appreciation		   Unrealized
Depreciation		 
KZT   267,600,000   USD   800,000   CIT  04/27/17  $46,378   $— 
KZT   524,000,000   USD   1,600,000   SCB  05/15/17   48,414    — 
KZT   254,787,600   USD   804,000   SCB  05/31/17   —    5,941 
MXN   1,896,028   USD   99,000   JPM  04/27/17   1,911    — 
MYR   5,707,464   USD   1,282,000   JPM  04/07/17   7,514    — 
PEN   2,103,438   USD   635,000   BNP  04/03/17   12,510    — 
PEN   469,686   USD   144,965   CIT  04/03/17   —    379 
PEN   2,103,438   USD   648,429   CIT  04/03/17   —    918 
PEN   1,324,191   USD   404,000   CIT  05/05/17   2,429    — 
PEN   2,576,370   USD   785,000   SCB  04/21/17   6,793    — 
PEN   5,902,443   USD   1,783,000   SCB  05/17/17   26,532    — 
PHP   55,752,270   USD   1,099,000   HSB  06/14/17   8,591    — 
PHP   59,497,560   USD   1,189,000   SCB  04/03/17   —    3,199 
PHP   586,980   USD   11,704   SCB  04/11/17   —    10 
PHP   65,593,990   USD   1,309,000   SCB  04/11/17   —    2,126 
PLN   2,661,504   USD   653,442   CIT  05/19/17   17,388    — 
PLN   3,231,709   USD   793,000   JPM  05/19/17   21,550    — 
PLN   3,931,078   USD   965,120   JPM  05/19/17   25,705    — 
RON   3,978,566   USD   1,012,950   CIT  04/13/17   —    80,732 
RON   4,457,577   USD   1,044,541   CIT  08/01/17   2,341    — 
RSD   211,395,240   EUR   1,689,000   CIT  05/15/17   14,362    — 
THB   54,639,000   USD   1,560,000   SCB  04/10/17   29,977    — 
TRY   657,461   USD   178,000   CIT  05/08/17   1,097    — 
TRY   2,396,743   USD   655,000   CIT  05/08/17   —    2,111 
TRY   2,359,999   USD   651,789   HSB  05/02/17   —    7,809 
TRY   2,076,589   USD   572,000   JPM  05/08/17   —    6,323 
TRY   4,221,811   USD   1,129,000   JPM  05/08/17   21,050    — 
UGX   1,405,584,000   USD   387,000   SCB  04/10/17   1,210    — 
USD   879,536   ARS   13,537,900   BNP  04/03/17   —    263 
USD   873,977   ARS   13,537,900   CIT  04/03/17   —    5,822 
USD   781,614   CAD   1,039,816   CIT  05/23/17   —    816 
USD   1,049,120   CNY   7,225,811   HSB  04/06/17   760    — 
USD   193,341   EGP   3,257,800   CIT  05/30/17   14,362    — 
USD   1,585,550   EUR   1,489,181   CIT  05/15/17   —    6,066 
USD   367,850   GHS   1,638,000   CIT  04/06/17   —    12,630 
USD   562,687   GHS   2,447,690   CIT  05/08/17   5,807    — 
USD   305,907   GHS   1,388,820   CIT  06/09/17   —    3,868 
USD   407,362   GHS   1,904,175   CIT  07/17/17   —    6,741 
USD   1,135,927   HUF   309,642,225   BNP  08/29/17   59,801    — 
USD   866,669   KES   90,393,600   CIT  05/30/17   —    2,153 
USD   788,000   KZT   252,160,000   CIT  05/15/17   —    5,252 
USD   648,429   PEN   2,103,438   BNP  04/03/17   918    — 
USD   791,000   PEN   2,573,123   CIT  04/03/17   —    1,096 
USD   144,519   PEN   469,686   CIT  05/05/17   360    — 
USD   11,702   PHP   586,980   SCB  04/03/17   4    — 
USD   1,172,000   PHP   58,910,580   SCB  04/03/17   —    2,102 
 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments (concluded)

March 31, 2017 (unaudited)

Forward Currency Contracts open at March 31, 2017 (concluded):

 

Currency
Purchased		  Quantity   Currency
Sold		  Quantity   Counterparty  Settlement
Date		  Unrealized
Appreciation		   Unrealized
Depreciation		   
USD   1,571,220   RON   6,576,340   CIT  11/09/17  $24,502   $—   
USD   1,006,340   RON   3,978,566   JPM  04/13/17   74,121    —   
USD   1,513,000   RUB   89,925,155   CIT  06/13/17   —    59,036   
USD   708,000   TRY   2,664,416   JPM  05/08/17   —    17,805   
USD   1,800,631   TRY   6,634,066   JPM  05/08/17   —    6,533   
USD   853,000   ZAR   11,258,747   CIT  04/28/17   17,278    —   
USD   863,000   ZAR   11,047,522   CIT  04/28/17   42,957    —   
ZAR   10,130,960   USD   800,000   HSB  04/26/17   —    47,730   
ZAR   20,410,314   USD   1,605,847   HSB  04/28/17   —    90,816   
Total gross unrealized appreciation/depreciation on Forward Currency Contracts $ 1,204,137     $ 466,371    

 

 
Currency Abbreviations:
   
ARS — Argentinian Peso
BRL — Brazilian Real
CAD — Canadian Dollar
CLP — Chilean Peso
CNY — Chinese Renminbi
COP — Colombian Peso
CZK — Czech Koruna
DOP — Dominican Republic Peso
EGP — Egyptian Pound
EUR — Euro
GHS — Ghanaian Cedi
HUF — Hungarian Forint
IDR — Indonesian Rupiah
INR — Indian Rupee
KES — Kenyan Shilling
KRW — South Korean Won
KZT — Kazakhstan Tenge
MXN — Mexican New Peso
MYR — Malaysian Ringgit
PEN — Peruvian New Sol
PHP — Philippine Peso
PLN — Polish Zloty
RON — New Romanian Leu
RSD — Serbian Dinar
RUB — Russian Ruble
THB — Thai Baht
TRY — New Turkish Lira
UGX — Ugandan Shilling
USD — United States Dollar
ZAR — South African Rand
Counterparty Abbreviations:
   
BNP — BNP Paribas SA
BRC — Barclays Bank PLC
CIT — Citibank NA
HSB — HSBC Bank USA NA
JPM — JPMorgan Chase Bank NA
SCB — Standard Chartered Bank


 

Lazard Global Total Return and Income Fund, Inc.

Notes to Portfolio of Investments

March 31, 2017 (unaudited)

 

(a) Non-income producing security

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

(c) For federal income tax purposes, the aggregate cost was $170,449,975, aggregate gross unrealized appreciation was $17,251,012, aggregate gross unrealized depreciation was $1,424,638 and the net unrealized appreciation was $15,826,374.

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

 

Security Abbreviations:

ADR - American Depositary Receipt
NTN-B - Brazil Sovereign “Nota do Tesouro Nacional” Series B
NTN-F - Brazil Sovereign “Nota do Tesouro Nacional” Series F

 

Portfolio holdings by industry* (as a percentage of net assets):
Aerospace & Defense   1.5%
Auto Components   1.8 
Banks   5.0 
Beverages   7.2 
Biotechnology   2.9 
Building Products   2.9 
Capital Markets   5.5 
Chemicals   3.5 
Communications Equipment   2.8 
Consumer Finance   1.1 
Containers & Packaging   1.0 
Electrical Equipment   2.6 
Electronic Equipment, Instruments & Components   1.0 
Energy Equipment & Services   1.9 
Food Products   0.7 
Health Care Equipment & Supplies   1.3 
Hotels, Restaurants & Leisure   1.3 
Industrial Conglomerates   1.7 
Insurance   6.0 
Internet Software & Services   5.7 
IT Services   7.2 
Life Sciences Tools & Services   2.7 
Machinery   1.9 
Multiline Retail   1.4 
Oil, Gas & Consumable Fuels   0.9 
Personal Products   1.0 
Pharmaceuticals   2.5 
Professional Services   4.2 
Real Estate Management & Development   1.7 
Road & Rail   1.7 
Semiconductors & Semiconductor Equipment   2.9 
Software   3.0 
Specialty Retail   2.3 
Technology Hardware, Storage & Peripherals   3.2 
Tobacco   1.1 
Trading Companies & Distributors   1.2 
Subtotal   96.3 
Foreign Government Obligations   14.8 
Short-Term Investment   2.6 
Total Investments   113.7%
 
* Industry classifications may be different than those used for compliance monitoring purposes.

 

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

 

Item 2. Controls and Procedures.

 

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

 

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

 

Item 3. Exhibits.

 

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

 

SIGNATURES

 

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

 

Lazard Global Total Return and Income Fund, Inc.

 

By: /s/ Nathan A. Paul
  Nathan A. Paul
  Chief Executive Officer

 

Date: May 8, 2017

 

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/ Nathan A. Paul
  Nathan A. Paul
  Chief Executive Officer

 

Date: May 8, 2017

 

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

 

Date: May 8, 2017