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: 9/30/2017

 

Item 1. Schedule of Investments.

 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments

September 30, 2017 (unaudited)

 

Description  Shares   Fair
Value		 
Common Stocks  |  96.8%          
Australia  |  0.9%          
Link Administration Holdings, Ltd.   281,700   $1,670,197 
Brazil  |  1.9%          
Ambev SA   298,500    1,982,994 
Cielo SA   211,680    1,469,058 
            3,452,052 
Canada  |  4.2%          
CAE, Inc.   83,400    1,459,124 
Canadian National Railway Co.   36,800    3,048,995 
National Bank of Canada   64,700    3,113,793 
            7,621,912 
China  |  3.0%          
Alibaba Group Holding, Ltd. Sponsored ADR (a)   13,895    2,399,806 
Tencent Holdings, Ltd.   68,500    2,961,402 
            5,361,208 
Denmark  |  1.2%          
Carlsberg A/S, Class B   19,527    2,139,107 
Finland  |  1.0%          
Sampo Oyj, A Shares   32,466    1,717,216 
France  |  1.1%          
Ubisoft Entertainment SA (a)   27,700    1,902,177 
Germany  |  2.9%          
Continental AG   9,854    2,501,097 
Symrise AG   36,415    2,767,219 
            5,268,316 
Hong Kong  |  1.5%          
AIA Group, Ltd.   359,600    2,666,901 
Ireland  |  1.6%          
Shire PLC   54,636    2,783,370 
Israel  |  0.8%          
Israel Discount Bank, Ltd., Class A (a)   572,600    1,443,819 
Japan  |  7.2%          
AEON Financial Service Co., Ltd.   96,200    2,017,746 
Daiwa House Industry Co., Ltd.   74,700    2,580,906 
Kao Corp.   29,000    1,709,926 
Ryohin Keikaku Co., Ltd.   10,600    3,123,994 
TechnoPro Holdings, Inc.   44,400    2,103,638 
Yamaha Corp.   40,400    1,490,646 
            13,026,856 
Netherlands  |  1.6%          
Wolters Kluwer NV   61,932    2,861,929 
Description  Shares   Fair
Value		 
South Africa  |  0.6%          
Sanlam, Ltd.   228,696   $1,144,497 
Sweden  |  3.1%          
Assa Abloy AB, Class B   81,229    1,858,719 
Hexagon AB, B Shares   39,500    1,962,566 
Nordea Bank AB   135,600    1,841,937 
            5,663,222 
Switzerland  |  0.9%          
Julius Baer Group, Ltd.   27,300    1,618,116 
Taiwan  |  1.0%          
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR   47,550    1,785,503 
United Kingdom  |  10.9%          
Ashtead Group PLC   94,091    2,271,177 
British American Tobacco PLC   27,012    1,688,811 
Coca-Cola European Partners PLC   51,845    2,157,789 
Compass Group PLC   108,319    2,299,703 
ConvaTec Group PLC   85,459    313,754 
Diageo PLC   85,462    2,809,517 
Prudential PLC   91,789    2,197,846 
RELX NV   138,707    2,953,944 
Rio Tinto PLC   29,100    1,354,586 
Unilever PLC   27,499    1,591,696 
            19,638,823 
United States  |  51.4%          
Accenture PLC, Class A   21,690    2,929,668 
Alphabet, Inc., Class A (a)   4,528    4,409,004 
Aon PLC   21,100    3,082,710 
Apple, Inc.   21,675    3,340,551 
Applied Materials, Inc.   22,830    1,189,215 
AutoZone, Inc. (a)   2,800    1,666,308 
Biogen, Inc. (a)   7,325    2,293,604 
Cisco Systems, Inc.   54,750    1,841,243 
Citigroup, Inc.   42,295    3,076,538 
Comerica, Inc.   22,800    1,738,728 
Commerce Bancshares, Inc.   22,485    1,298,958 
Crown Holdings, Inc. (a)   31,055    1,854,605 
DXC Technology Co.   17,735    1,523,082 
Eaton Corp. PLC   19,620    1,506,620 
eBay, Inc. (a)   26,300    1,011,498 
Five Below, Inc. (a)   25,945    1,423,862 
Honeywell International, Inc.   22,400    3,174,976 
Intercontinental Exchange, Inc.   47,100    3,235,770 
Johnson Controls International PLC   39,325    1,584,404 
Medtronic PLC   26,490    2,060,127 
Microsoft Corp.   48,125    3,584,831 
 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments (continued)

September 30, 2017 (unaudited)

 

Description  Shares   Fair
Value		 
Molson Coors Brewing Co., Class B   23,900   $1,951,196 
Monsanto Co.   15,300    1,833,246 
Motorola Solutions, Inc.   20,320    1,724,558 
PPG Industries, Inc.   14,885    1,617,404 
Quintiles IMS Holdings, Inc. (a)   27,300    2,595,411 
Rockwell Automation, Inc.   16,110    2,870,963 
S&P Global, Inc.   18,400    2,876,104 
Schlumberger, Ltd.   38,900    2,713,664 
Snap-on, Inc.   9,500    1,415,595 
The Charles Schwab Corp.   57,800    2,528,172 
The Coca-Cola Co.   91,645    4,124,942 
The J.M. Smucker Co.   16,700    1,752,331 
Thermo Fisher Scientific, Inc.   14,900    2,819,080 
United Technologies Corp.   18,415    2,137,613 
Vantiv, Inc., Class A (a)   49,180    3,465,715 
Visa, Inc., Class A   27,710    2,916,200 
Welbilt, Inc. (a)   74,400    1,714,920 
Zoetis, Inc.   55,810    3,558,446 
            92,441,862 
Total Common Stocks
(Cost $146,305,587)		           174,207,083 
              
Description  Principal
Amount
(000) (b)		   Fair
Value		 
Foreign Government Obligations  |  12.6%          
Brazil  |  1.6%          
Brazil NTN-F:          
10.00%, 01/01/21   2,739   $896,365 
10.00%, 01/01/27   6,330    2,036,050 
         2,932,415 
Dominican Republic  |  0.5%          
Dominican Republic Bonds:          
15.95%, 06/04/21 (c)   16,800    419,841 
10.50%, 04/07/23 (c)   20,300    435,633 
         855,474 
Egypt  |  2.5%          
Egypt Treasury Bills:          
0.00%, 11/07/17   71,200    3,965,170 
0.00%, 01/02/18   11,800    639,464 
         4,604,634 
Indonesia  |  1.1%          
Indonesia Government Bonds:          
8.25%, 07/15/21   10,321,000    816,853 
8.375%, 09/15/26   13,313,000    1,108,016 
         1,924,869 
Description  Principal
Amount
(000) (b)		   Fair
Value		 
Malaysia  |  2.7%          
Malaysia Government Bonds:          
3.314%, 10/31/17   4,740   $1,122,744 
4.24%, 02/07/18   6,300    1,497,752 
3.58%, 09/28/18   9,150    2,175,457 
         4,795,953 
Mexico  |  1.6%          
Mexican Bonos:          
6.50%, 06/10/21   39,180    2,135,373 
5.75%, 03/05/26   13,620    696,559 
         2,831,932 
Russia  |  1.1%          
Russia Government Bonds - OFZ,
7.50%, 08/18/21		   110,100    1,914,126 
Turkey  |  0.8%          
Turkey Government Bonds,
2.00%, 10/26/22		   5,636    1,520,996 
Uruguay  |  0.7%          
Republica Orient Uruguay,
5.00%, 09/14/18		   36,202    1,267,478 
Total Foreign Government Obligations
(Cost $22,117,932)		        22,647,877 
           
Description  Shares   Fair
Value		 
Short-Term Investments  |  2.5%          
State Street Institutional Treasury Money Market Fund, Premier Class, 0.92% (7 day yield)
(Cost $4,514,936)		   4,514,936   $4,514,936 
Total Investments  |  111.9%
(Cost $172,938,455) (d)		       $201,369,896 
Liabilities in Excess of Cash and
 Other Assets  |  (11.9)%		        (21,337,833)
Net Assets  |  100.0%       $180,032,063 
 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments (continued)

September 30, 2017 (unaudited)

 

Forward Currency Contracts open at September 30, 2017:

 

Currency
Purchased		  Quantity   Currency
Sold		  Quantity   Counterparty  Settlement
Date		  Unrealized
Appreciation		   Unrealized
Depreciation		 
ARS   21,854,010   USD   1,210,078   CIT  12/22/17  $—   $502 
ARS   16,431,200   USD   920,000   HSB  11/02/17   13,521    — 
ARS   17,177,370   USD   942,000   HSB  11/29/17   20,090    — 
ARS   24,706,080   USD   1,411,574   SCB  10/23/17   —    165 
CAD   1,085,634   USD   880,000   CIT  10/16/17   —    9,836 
CAD   1,098,249   USD   902,809   CIT  10/16/17   —    22,534 
CLP   566,596,450   USD   911,000   SCB  10/25/17   —    26,141 
CNY   10,726,088   USD   1,563,000   CIT  01/17/18   44,071    — 
CNY   7,467,350   USD   1,128,169   SCB  10/10/17   —    4,042 
CNY   8,262,598   USD   1,228,000   SCB  10/23/17   14,961    — 
CNY   8,998,236   USD   1,326,000   SCB  10/23/17   27,625    — 
CNY   7,467,350   USD   1,118,369   SCB  11/10/17   3,992    — 
COP   3,728,168,000   USD   1,264,000   CIT  11/28/17   —    2,725 
COP   5,393,419,200   USD   1,839,000   SCB  10/11/17   —    4,324 
CZK   39,107,008   EUR   1,504,000   BNP  10/30/17   1,312    — 
CZK   38,906,001   EUR   1,494,000   CIT  10/30/17   3,992    — 
CZK   19,237,648   EUR   739,000   CIT  11/30/17   1,663    — 
CZK   81,202,455   EUR   3,043,000   CIT  02/27/18   103,531    — 
DOP   40,698,000   USD   850,000   CIT  10/11/17   963    — 
DOP   42,700,000   USD   875,000   CIT  01/19/18   2,465    — 
EGP   24,103,950   USD   1,266,962   CIT  02/28/18   45,253    — 
EUR   3,031,639   CZK   81,202,455   CIT  02/27/18   —    117,073 
EUR   1,068,000   RON   4,919,315   JPM  10/10/17   —    3,222 
EUR   591,089   USD   693,390   JPM  10/10/17   5,484    — 
HUF   283,639,850   EUR   911,000   BNP  11/30/17   —    1,861 
HUF   372,512,183   USD   1,451,000   BNP  10/03/17   —    38,513 
HUF   511,298,562   USD   2,020,000   CIT  11/07/17   —    78,456 
HUF   372,102,550   USD   1,415,000   CIT  11/30/17   —    582 
IDR   31,835,040,000   USD   2,287,000   HSB  04/26/18   33,383    — 
IDR   9,611,385,000   USD   717,000   SCB  11/08/17   —    5,597 
INR   146,704,239   USD   2,266,000   CIT  11/21/17   —    32,883 
INR   59,414,910   USD   899,000   CIT  12/28/17   1,715    — 
INR   85,062,027   USD   1,327,000   JPM  10/11/17   —    25,960 
KRW   1,979,929,080   USD   1,746,000   SCB  10/13/17   —    17,182 
KZT   448,228,000   USD   1,336,000   CIT  11/28/17   —    35,306 
KZT   321,596,160   USD   941,000   SCB  10/16/17   1,234    — 
KZT   169,303,050   USD   497,000   SCB  10/27/17   —    2,200 
KZT   285,520,000   USD   860,000   SCB  10/27/17   —    25,548 
KZT   344,185,800   USD   1,018,000   SCB  11/08/17   —    14,797 
KZT   290,895,000   USD   860,000   SCB  01/29/18   —    26,935 
MAD   4,548,960   USD   468,000   CIT  10/27/17   11,092    — 
MAD   3,370,965   USD   361,110   SCB  10/05/17   —    4,214 
MAD   4,763,410   USD   503,000   SCB  12/28/17   —    8,025 
MXN   35,649,329   USD   1,859,000   CIT  11/27/17   81,288    — 
PEN   3,999,222   USD   1,230,000   CIT  10/20/17   —    5,575 
PEN   1,424,902   USD   438,000   CIT  11/06/17   —    1,968 
PEN   3,314,787   USD   1,015,000   SCB  10/16/17   —    19 
 

Lazard Global Total Return and Income Fund, Inc.

Portfolio of Investments (concluded)

September 30, 2017 (unaudited)

 

Forward Currency Contracts open at September 30, 2017 (concluded):

 

Currency
Purchased		  Quantity   Currency
Sold		  Quantity   Counterparty  Settlement
Date		  Unrealized
Appreciation		   Unrealized
Depreciation		 
PHP   137,644,070   USD   2,686,000   JPM  11/14/17  $17,501   $— 
PLN   11,273,012   USD   3,139,000   CIT  10/18/17   —    49,778 
RON   4,179,903   EUR   915,000   JPM  10/10/17   —    6,164 
RON   5,882,422   USD   1,542,000   CIT  11/01/17   —    28,371 
RON   6,576,340   USD   1,554,249   CIT  11/09/17   137,758    — 
RSD   85,544,880   USD   862,000   CIT  10/31/17   —    15,022 
RUB   100,071,252   USD   1,748,000   SCB  10/11/17   —    12,082 
THB   89,174,960   USD   2,699,000   SCB  10/18/17   —    24,767 
TRY   6,636,252   USD   1,879,000   CIT  11/30/17   —    48,034 
USD   219,000   BRL   718,780   CIT  10/17/17   —    7,494 
USD   970,000   BRL   3,118,550   CIT  10/17/17   —    12,681 
USD   1,722,000   CAD   2,183,883   CIT  10/16/17   —    28,439 
USD   1,122,572   CNY   7,467,350   SCB  10/10/17   —    1,555 
USD   935,600   EUR   780,561   CIT  10/30/17   11,728    — 
USD   1,413,172   HUF   372,512,183   CIT  10/03/17   685    — 
USD   1,571,220   RON   6,576,340   CIT  11/09/17   —    120,788 
USD   1,025,000   RUB   59,583,250   SCB  10/11/17   —    8,580 
USD   742,000   TRY   2,653,763   SCB  11/30/17   9,817    — 
UYU   25,348,750   USD   875,000   CIT  10/17/17   —    4,985 
ZAR   11,569,689   USD   890,000   CIT  10/13/17   —    36,836 
ZAR   24,343,537   USD   1,786,000   CIT  10/31/17   3,917    — 
Total gross unrealized appreciation/depreciation on Forward Currency Contracts  $599,041   $921,761 

 

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
HUF — Hungarian Forint
IDR — Indonesian Rupiah
INR — Indian Rupee
KRW  — South Korean Won
KZT — Kazakhstan Tenge
MAD — Moroccan Dirham
MXN — Mexican New Peso
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
USD — United States Dollar
UYU — Uruguayan Peso
ZAR  — South African Rand
   
Counterparty Abbreviations:
BNP — BNP Paribas SA
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

September 30, 2017 (unaudited)

 

(a) Non-income producing security.
(b) Principal amount denominated in respective country’s currency.
(c) Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At September 30, 2017, these securities amounted to 0.5% of net assets.
(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-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   7.0 
Beverages   8.4 
Biotechnology   2.8 
Building Products   1.9 
Capital Markets   5.7 
Chemicals   3.5 
Communications Equipment   2.0 
Consumer Finance   1.1 
Containers & Packaging   1.0 
Electrical Equipment   2.4 
Electronic Equipment, Instruments & Components   1.1 
Energy Equipment & Services   1.5 
Food Products   1.0 
Health Care Equipment & Supplies   1.3 
Hotels, Restaurants & Leisure   1.3 
Industrial Conglomerates   1.8 
Insurance   6.0 
Internet Software & Services   6.0 
IT Services   7.8 
Leisure Products   0.8 
Life Sciences Tools & Services   3.0 
Machinery   1.7 
Metals & Mining   0.8 
Multiline Retail   1.7 
Personal Products   1.8 
Pharmaceuticals   2.0 
Professional Services   4.4 
Real Estate Management & Development   1.4 
Road & Rail   1.7 
Semiconductors & Semiconductor Equipment   1.7 
Software   3.0 
Specialty Retail   1.7 
Technology Hardware, Storage & Peripherals   1.9 
Tobacco   0.9 
Trading Companies & Distributors   1.3 
Subtotal   96.8 
Foreign Government Obligations   12.6 
Short-Term Investments   2.5 
Total Investments   111.9%


 

* 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:  November 17, 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:  November 17, 2017

 

By: /s/ Christopher Snively
  Christopher Snively
  Chief Financial Officer
   
Date:  November 17, 2017