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: 3/31/2018

 

Item 1. Schedule of Investments.

 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments

March 31, 2018 (unaudited)

 

Description  Shares    Fair
Value
 
Common Stocks | 96.4%          
Belgium | 1.4%          
Anheuser-Busch InBev SA/NV   23,900   $2,626,671 
Brazil | 0.7%          
Cielo SA   211,680    1,326,586 
Canada | 3.8%          
CAE, Inc.   83,400    1,552,320 
Canadian National Railway Co.   36,800    2,689,555 
National Bank of Canada   64,700    3,045,297 
         7,287,172 
China | 2.3%          
Alibaba Group Holding, Ltd. Sponsored ADR (*)   8,815    1,617,905 
Tencent Holdings, Ltd.   52,700    2,805,285 
         4,423,190 
Finland | 1.3%          
Sampo Oyj, A Shares   42,166    2,351,774 
France | 1.2%          
Ubisoft Entertainment SA (*)   27,700    2,339,892 
Germany | 2.5%          
Continental AG   9,854    2,721,921 
Symrise AG   23,915    1,925,643 
         4,647,564 
Hong Kong | 1.6%          
AIA Group, Ltd.   359,600    3,069,860 
Ireland | 1.4%          
Shire PLC   54,636    2,723,563 
Israel | 1.0%          
Israel Discount Bank, Ltd., Class A (*)   662,300    1,904,714 
Japan | 6.2%          
Daiwa House Industry Co., Ltd.   74,700    2,875,215 
Kao Corp.   29,000    2,186,465 
Ryohin Keikaku Co., Ltd.   8,600    2,864,097 
TechnoPro Holdings, Inc.   35,200    2,137,524 
Yamaha Corp.   40,400    1,766,538 
         11,829,839 
Netherlands | 2.0%          
Wolters Kluwer NV   71,582    3,812,224 
Singapore | 1.4%          
Oversea-Chinese Banking Corp., Ltd.   261,900    2,579,766 
South Africa | 0.9%          
Sanlam, Ltd.   228,696    1,650,517 
Sweden | 2.9%          
Assa Abloy AB, Class B   81,229    1,763,630 
Description  Shares    Fair
Value
Hexagon AB, B Shares   39,500   $2,366,494 
Nordea Bank AB   135,600    1,448,637 
         5,578,761 
Switzerland | 0.9%          
Julius Baer Group, Ltd.   27,300    1,680,998 
Taiwan | 1.1%          
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR   47,550    2,080,788 
United Kingdom | 12.7%          
Ashtead Group PLC   94,091    2,565,717 
British American Tobacco PLC   27,012    1,568,078 
Coca-Cola European Partners PLC   51,845    2,159,863 
Compass Group PLC   108,319    2,213,411 
Diageo PLC   85,462    2,891,187 
Prudential PLC   91,789    2,294,480 
RELX NV   158,507    3,288,388 
Rio Tinto PLC   29,100    1,477,460 
RSA Insurance Group PLC   218,200    1,930,302 
Unilever PLC   68,899    3,828,492 
         24,217,378 
United States | 51.1%          
Accenture PLC, Class A   20,490    3,145,215 
Alphabet, Inc., Class A (*)   4,228    4,385,028 
Aon PLC   26,850    3,767,860 
Apple, Inc.   19,575    3,284,293 
Applied Materials, Inc.   22,830    1,269,576 
AutoZone, Inc. (*)   2,665    1,728,759 
Biogen, Inc. (*)   12,570    3,441,917 
Cisco Systems, Inc.   54,750    2,348,228 
Citigroup, Inc.   42,295    2,854,913 
Comerica, Inc.   22,800    2,187,204 
Crown Holdings, Inc. (*)   31,055    1,576,041 
DXC Technology Co.   17,735    1,782,900 
Eaton Corp. PLC   19,620    1,567,834 
eBay, Inc. (*)   47,900    1,927,496 
Five Below, Inc. (*)   25,945    1,902,806 
Honeywell International, Inc.   22,400    3,237,024 
Intercontinental Exchange, Inc.   47,100    3,415,692 
IQVIA Holdings, Inc. (*)   33,280    3,265,101 
Johnson & Johnson   25,130    3,220,410 
Johnson Controls International PLC   39,325    1,385,813 
Microsoft Corp.   44,325    4,045,543 
Molson Coors Brewing Co., Class B   23,900    1,800,387 
Motorola Solutions, Inc.   20,320    2,139,696 
Rockwell Automation, Inc.   11,410    1,987,622 
S&P Global, Inc.   14,800    2,827,688 


 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2018 (unaudited)

 

           
Description  Shares    Fair
Value
 
Schlumberger, Ltd.   37,570   $2,433,785 
Snap-on, Inc.   11,850    1,748,349 
Starbucks Corp.   26,365    1,526,270 
The Charles Schwab Corp.   57,800    3,018,316 
The Coca-Cola Co.   91,645    3,980,142 
The J.M. Smucker Co.   16,700    2,070,967 
Thermo Fisher Scientific, Inc.   16,900    3,489,174 
United Technologies Corp.   17,365    2,184,864 
Visa, Inc., Class A   27,710    3,314,670 
Welbilt, Inc. (*)   74,400    1,447,080 
Worldpay, Inc., Class A (*)   49,180    4,044,563 
Zoetis, Inc.   41,910    3,499,904 
         97,253,130 
Total Common Stocks
(Cost $146,714,673)
        183,384,387 
           
Description  Principal
Amount
(000) (¢)
    Fair
Value
 
Foreign Government Obligations | 13.9%          
Brazil | 0.4%          
Brazil NTN-F,
10.00%, 01/01/21
   2,739   $869,669 
Dominican Republic | 1.0%          
Dominican Republic Bonds:          
15.95%, 06/04/21 (#)   16,800    407,131 
8.90%, 02/15/23 (#)   48,000    993,575 
10.50%, 04/07/23 (#)   20,300    427,318 
         1,828,024 
Egypt | 3.3%          
Egypt Treasury Bills:          
0.00%, 06/26/18   12,550    682,776 
0.00%, 07/03/18   26,600    1,444,546 
0.00%, 08/21/18   78,300    4,128,664 
         6,255,986 
Indonesia | 1.0%          
Indonesia Government Bonds:          
8.25%, 07/15/21   10,321,000    796,706 
8.375%, 09/15/26   13,313,000    1,072,389 
         1,869,095 
Malaysia | 2.2%          
Malaysia Government Bonds:          
3.58%, 09/28/18   9,150    2,369,341 
3.759%, 03/15/19   4,661    1,211,690 
3.654%, 10/31/19   2,470    641,597 
         4,222,628 
Description  Principal
Amount
(000) (¢)
    Fair
Value
 
Mexico | 1.5%          
Mexican Bonos:          
6.50%, 06/10/21   39,180   $2,109,748 
5.75%, 03/05/26   13,620    680,839 
         2,790,587 
Romania | 0.7%          
Romania Government Bonds:          
5.85%, 04/26/23   1,580    450,620 
5.80%, 07/26/27   3,220    931,857 
         1,382,477 
Russia | 1.1%          
Russia Government Bonds - OFZ,
7.05%, 01/19/28
   116,300    2,045,104 
South Africa | 1.1%          
Republic of South Africa,
6.75%, 03/31/21
   25,950    2,176,854 
Sri Lanka | 0.1%          
Sri Lanka Government Bonds,
9.25%, 05/01/20
   32,000    203,477 
Turkey | 1.5%          
Turkey Government Bonds:          
10.40%, 03/27/19   5,700    1,400,692 
2.00%, 10/26/22   6,007    1,451,054 
         2,851,746 

Total Foreign Government Obligations

(Cost $26,304,721)

        26,495,647 
           
Description  Shares    Fair
Value
 
Short-Term Investments | 0.7%          
State Street Institutional Treasury Money Market Fund, Premier Class, 1.51% (7 day yield)
(Cost $1,259,805)
   1,259,805   $1,259,805 
Total Investments | 111.0%
(Cost $174,279,199) (¤)
       $211,139,839 
Liabilities in Excess of Cash and Other Assets | (11.0)%        (20,867,463)
Net Assets | 100.0%       $190,272,376 


 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments (continued)

March 31, 2018 (unaudited)

 

Forward Currency Contracts open at March 31, 2018:

Currency
Purchased
  Quantity  Currency
Sold
  Quantity  Counterparty  Settlement
Date
  Unrealized
Appreciation
   Unrealized
Depreciation
 
ARS  12,060,580  USD  554,000  CIT  08/21/18  $2,827   $ 
ARS  21,538,800  USD  1,116,000  HSB  04/05/18       46,741 
ARS  17,211,800  USD  820,000  HSB  06/15/18   3,107     
ARS  23,737,320  USD  1,116,000  HSB  06/15/18   19,172     
ARS  47,115,000  USD  2,250,000  JPM  05/22/18   32,190     
ARS  17,849,260  USD  869,000  SCB  04/27/18   6,894     
BRL  4,942,385  USD  1,515,000  CIT  04/09/18       18,723 
BRL  3,999,275  USD  1,187,045  CIT  10/16/18   3,913     
BRL  3,029,872  USD  926,000  HSB  04/20/18       9,532 
BRL  3,290,208  USD  983,238  JPM  04/09/18   12,853     
BRL  3,363,815  USD  1,015,829  JPM  04/09/18   2,546     
CLP  586,595,520  USD  976,000  HSB  04/20/18       4,566 
CNY  24,867,075  USD  3,917,000  CIT  05/09/18   38,100     
CNY  5,863,895  USD  926,000  HSB  05/09/18   6,651     
COP  5,243,145,600  USD  1,848,000  CIT  04/12/18   28,256     
COP  4,055,643,900  USD  1,419,000  CIT  05/29/18   30,241     
COP  2,856,603,750  USD  1,001,000  SCB  05/09/18   20,715     
CZK  43,281,860  EUR  1,702,000  CIT  04/26/18   1,344     
CZK  15,015,288  USD  731,000  JPM  04/26/18       2,872 
EUR  1,696,747  USD  2,120,000  CIT  05/25/18       24,641 
GHS  2,194,020  USD  478,000  CIT  05/07/18   11,108     
GHS  1,922,210  USD  422,000  SCB  04/23/18   9,099     
GHS  2,549,780  USD  529,000  SCB  07/09/18   25,674     
HUF  696,965,475  USD  2,778,000  JPM  04/27/18       28,673 
IDR  10,524,830,000  USD  758,000  CIT  01/07/19       9,929 
IDR  31,835,040,000  USD  2,287,000  HSB  04/26/18   29,059     
IDR  2,958,460,000  USD  212,000  HSB  01/07/19       1,722 
IDR  16,817,723,000  USD  1,217,000  SCB  04/06/18   6,018     
INR  56,283,570  USD  861,000  CIT  05/08/18   770     
INR  95,129,840  USD  1,460,615  HSB  04/09/18   53     
INR  222,192,284  USD  3,443,000  SCB  04/20/18       33,278 
KRW  2,039,193,240  USD  1,907,000  SCB  04/12/18   12,877     
KZT  331,014,000  USD  1,032,000  CIT  04/06/18   4,617     
KZT  482,313,000  USD  1,490,000  CIT  04/26/18   15,549     
KZT  376,763,400  USD  1,170,000  SCB  05/25/18   1,164     
NGN  383,980,000  USD  1,052,000  CIT  06/19/18   54,751     
NGN  312,750,000  USD  834,000  HSB  12/27/18   23,948     
NGN  324,996,000  USD  876,000  JPM  09/19/18   37,834     
NGN  382,402,000  USD  1,052,000  SCB  05/21/18   60,703     
NGN  301,444,500  USD  798,000  SCB  12/27/18   28,934     
PEN  6,450,724  USD  1,973,000  HSB  05/18/18   23,537     
PEN  3,100,383  USD  947,000  SCB  04/16/18   13,587     
PHP  154,698,638  USD  3,049,000  JPM  04/12/18       87,607 
PLN  9,803,244  USD  2,889,000  JPM  04/16/18       24,928 
PLN  2,767,785  USD  813,000  SCB  04/30/18       4,147 
 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments (concluded)

March 31, 2018 (unaudited)

 

Forward Currency Contracts open at March 31, 2018 (concluded):

Currency
Purchased
  Quantity  Currency
Sold
  Quantity  Counterparty  Settlement
Date
  Unrealized
Appreciation
   Unrealized
Depreciation
 
RUB  60,768,900  USD  1,065,000  SCB  04/16/18  $   $6,084 
RUB  98,867,463  USD  1,723,000  SCB  05/16/18       6,679 
SGD  1,837,220  USD  1,406,000  SCB  05/31/18       2,996 
THB  114,455,818  USD  3,677,000  SCB  05/16/18       11,526 
TRY  5,866,067  USD  1,353,000  SCB  11/13/18   35,806     
UAH  14,813,350  USD  503,000  SCB  07/26/18   32,811     
USD  1,064,170  ARS  21,538,800  HSB  04/05/18       5,089 
USD  2,318,000  AUD  3,026,307  SCB  06/04/18       6,566 
USD  1,205,000  BRL  3,999,275  HSB  10/16/18   14,041     
USD  961,000  CNY  6,161,932  HSB  05/09/18       19,053 
USD  1,018,000  COP  2,833,094,000  CIT  04/12/18   4,179     
USD  3,678,000  EUR  2,972,962  CIT  05/25/18   6,607     
USD  825,000  IDR  11,431,200,000  SCB  04/06/18       6,300 
USD  1,406,000  JPY  148,137,566  HSB  05/29/18   8,907     
USD  368,000  MXN  6,981,144  SCB  05/23/18       13,038 
USD  964,572  RON  3,633,255  CIT  03/15/19   5,760     
USD  615,000  TRY  2,363,045  CIT  04/05/18   16,575     
USD  908,000  TRY  3,514,868  SCB  04/05/18   17,884     
USD  946,000  TRY  3,676,582  SCB  04/05/18   14,931     
USD  1,089,221  UYU  31,680,000  HSB  04/18/18       24,964 
USD  1,877,000  ZAR  22,664,963  SCB  04/20/18       33,069 
USD  148,777  ZAR  1,756,977  SCB  05/16/18   1,233     
UYU  32,876,480  USD  1,129,000  JPM  04/18/18   27,265     
UYU  39,045,350  USD  1,345,000  JPM  04/18/18   28,225     
ZAR  9,245,687  USD  769,000  CIT  05/16/18   7,413     
ZAR  11,094,773  USD  945,000  SCB  04/20/18       9,998 
Total gross unrealized appreciation/depreciation on Forward Currency Contracts  $789,728   $442,721 

 

Currency Abbreviations:
ARS — Argentinian Peso
AUD — Australian Dollar
BRL — Brazilian Real
CLP — Chilean Peso
CNY — Chinese Renminbi
COP — Colombian Peso
CZK — Czech Koruna
EUR — Euro
GHS — Ghanaian Cedi
HUF — Hungarian Forint
IDR — Indonesian Rupiah
INR — Indian Rupee
JPY — Japanese Yen
KRW — South Korean Won
KZT — Kazakhstan Tenge
MXN — Mexican New Peso
NGN — Nigerian Naira
PEN — Peruvian New Sol
PHP — Philippine Peso
PLN — Polish Zloty
RON — New Romanian Leu
RUB — Russian Ruble
SGD — Singapore Dollar
THB — Thai Baht
TRY — New Turkish Lira
UAH — Ukranian Hryvnia
USD — United States Dollar
UYU — Uruguayan Peso
ZAR — South African Rand

 

Counterparty Abbreviations:
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, 2018 (unaudited)

 

(*) Non-income producing security.
(¢) Principal amount denominated in respective country’s currency.
(#) Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At March 31, 2018, these securities amounted to 1.0% of net assets.
(¤) 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-F - Brazil Sovereign “Nota do Tesouro Nacional” Series F

 

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

Aerospace & Defense  2.0%
Auto Components  1.4 
Banks  7.4 
Beverages  7.1 
Biotechnology  3.2 
Building Products  1.7 
Capital Markets  5.7 
Chemicals  1.0 
Communications Equipment  2.4 
Containers & Packaging  0.8 
Electrical Equipment  1.9 
Electronic Equipment, Instruments & Components  1.2 
Energy Equipment & Services  1.3 
Food Products  1.1 
Hotels, Restaurants & Leisure  2.0 
Industrial Conglomerates  1.7 
Insurance  7.9 
Internet Software & Services  5.6 
IT Services  7.2 
Leisure Products  0.9 
Life Sciences Tools & Services  3.5 
Machinery  1.7 
Metals & Mining  0.8 
Multiline Retail  1.5 
Personal Products  3.2 
Pharmaceuticals  3.5 
Professional Services  4.9 
Real Estate Management & Development  1.5 
Road & Rail  1.4 
Semiconductors & Semiconductor Equipment  1.8 
Software  3.4 
Specialty Retail  1.9 
Technology Hardware, Storage & Peripherals  1.7 
Tobacco  0.8 
Trading Companies & Distributors  1.3 
Subtotal  96.4 
Foreign Government Obligations  13.9 
Short-Term Investments  0.7 
Total Investments  111.0%

 

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 25, 2018

 

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 25, 2018

 

By: /s/ Christopher Snively
  Christopher Snively
  Chief Financial Officer
   
Date:   May 25, 2018