Lazard Global Total Return and Income Fund Announces Increased Monthly Distribution
Lazard Global Total Return and Income Fund (NYSE: LGI) has announced an increase in its monthly distribution to shareholders as per its Managed Distribution Policy.
Starting with the distribution payable on July 22, 2024, shareholders of record on July 11, 2024, will receive a monthly distribution equal to 10% of the Fund’s net asset value per share on an annualized basis, or $0.14941 per share. The Fund clarified that part of this distribution might be a return of capital, not necessarily indicative of investment performance.
Portfolio data as of May 31, 2024, is available on Lazard Asset Management's website. The Fund aims for total returns via capital appreciation and current income, investing in a diversified portfolio of 60-80 US and non-US equity securities and other instruments, including emerging market currencies and debt obligations.
Lazard Asset Management manages $245 billion in client assets as of May 31, 2024.
- Increased monthly distribution to shareholders starting July 2024
- Annualized distribution equal to 10% of the Fund’s net asset value per share
- Diversified portfolio of 60-80 US and non-US equity securities
- Fund managed $245 billion in client assets as of May 31, 2024
- A portion of the distribution may be a return of capital, not indicative of investment performance
Insights
The announcement of an increased monthly distribution by the Lazard Global Total Return and Income Fund, Inc. (LGI) is significant for investors, particularly in the context of income generation. The new distribution rate, set at an
However, it is important to understand that a substantial portion of this distribution may be classified as a return of capital rather than income or realized gains. This means the fund is partially returning investors' initial capital rather than purely generating income from its investments. While this might be appealing in the short term, it does raise concerns about the sustainability of such distributions over the long term. Investors should consider the potential implications on the fund's NAV and future performance.
It's essential for retail investors to recognize the difference between return of capital and yield. A high distribution rate may seem appealing, but it could potentially signal that the fund is not generating sufficient income and gains to sustain its payout. In the long run, this could affect the fund's ability to maintain its NAV and could result in NAV erosion if not managed correctly.
In summary, while the increased distribution offers immediate appeal, investors should approach with caution, evaluating both the short-term benefits and potential long-term impacts.
In the broader market context, the Lazard Global Total Return and Income Fund's decision to raise its monthly distribution aligns with a trend among funds seeking to attract income-focused investors. Given the current low-interest-rate environment, many investors have been shifting towards equity income funds to achieve better returns than traditional fixed income assets.
This move can be seen as a strategic effort to enhance the fund's competitiveness and appeal. However, investors should be wary of over-reliance on such strategies, as they may mask underlying performance issues. The fund's diverse investment strategy, including exposure to emerging markets and both equity and debt instruments, is a strength, but it also adds a layer of complexity and risk that investors should consider.
The fund's performance and ability to sustain its distribution will heavily depend on its investment outcomes and the broader economic environment. Diversification into emerging markets adds growth potential but also introduces currency and political risks. Investors should weigh these factors against the attractive distribution rate.
Overall, this announcement is a mixed bag of opportunities and risks. While it appeals to yield-seeking investors, the sustainability and potential long-term impact on the fund's NAV need careful consideration.
You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's Managed Distribution Policy.
The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of your distribution may be return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income".
The amounts and sources of distributions reported above are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund provides financial intermediary firms the information necessary to produce the Form 1099-DIV, and then the relevant financial intermediary firm will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. If you have any questions, or need additional information, please call us at 1-800-823-6300.
Portfolio data as of May 31, 2024, including performance, asset allocation, top 10 holdings, sector weightings, regional exposure, and other Fund characteristics have been posted on Lazard Asset Management's ("LAM") website, www.LazardAssetManagement.com.
The Fund's investment objective is total return, consisting of capital appreciation and current income. The Fund's net assets are invested in a portfolio of approximately 60 to 80 US and non-US equity securities, including American Depository Receipts, generally of companies with market capitalizations greater than
An indirect subsidiary of Lazard, Inc. (NYSE: LAZ), LAM, the Fund's investment manager, offers a range of equity, fixed-income, and alternative investment products worldwide. As of May 31, 2024, LAM and affiliated asset management companies in the Lazard Group managed
View source version on businesswire.com: https://www.businesswire.com/news/home/20240628442296/en/
Media contact:
Aziz Nayani, +1 212 632 6042
aziz.nayani@lazard.com
Investor contact:
Ben Wulfsohn, +1 800 823 6300
ben.wulfsohn@lazard.com
Source: Lazard Global Total Return and Income Fund, Inc.
FAQ
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