Lazard Global Total Return and Income Fund Announces Monthly Distribution Amount

Rhea-AI Summary

Lazard Global Total Return and Income Fund, Inc. (LGI) confirms a monthly distribution of $0.10459 per share, equivalent to 7% annualized of its net asset value, payable on January 22, 2024. The Fund's investment objective is total return, consisting of capital appreciation and current income. It invests 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 $2 billion, and may include investments in emerging markets. Lazard Asset Management, the Fund's investment manager, offers a range of equity, fixed-income, and alternative investment products worldwide. As of November 30, 2023, LAM and affiliated asset management companies in the Lazard Group managed $235.9 billion worth of client assets.

Insights

Financial Analyst

The announcement of Lazard Global Total Return and Income Fund's monthly distribution is a significant indicator of the Fund's performance and strategy. The 7% annualized distribution rate is a commitment to shareholders, reflecting a stable or growing net asset value (NAV). This rate is particularly noteworthy in the context of the current interest rate environment and market volatility. Investors often seek income-generating investments during uncertain times and a fund offering a consistent distribution could be appealing.

However, the sustainability of such distributions is contingent upon the Fund's underlying portfolio performance, which comprises a mix of US and non-US equity securities, as well as emerging market currencies and debt obligations. The diversification across asset classes and geographies could mitigate risk, but it also exposes investors to currency fluctuation and emerging market volatility. The investment in structured notes denominated in emerging market currencies is particularly complex, as these instruments can be influenced by a myriad of factors including political risk, interest rate changes and economic developments.

Market Research Analyst

The Fund's strategy to invest in a range of 60 to 80 equity securities, including American Depository Receipts, targets capital appreciation alongside current income. This approach indicates a balanced strategy that aims to cater to growth-oriented investors as well as those seeking regular income. The mention of a managed distribution policy suggests a methodical approach to providing shareholder returns, which can be attractive to a certain investor demographic.

From a market perspective, the Fund's performance and the asset manager's total client assets under management, reported at $235.9 billion, are indicators of Lazard Asset Management's market position and the trust placed in them by clients. This figure, while substantial, should be evaluated alongside industry benchmarks and competitors' assets under management to fully gauge market share and competitive standing.

Economist

The Fund's investment in emerging market currencies and debt obligations is a strategic decision that reflects broader economic trends. Emerging markets can offer higher yields, but they come with increased risks, including economic instability and currency devaluation. The Fund's use of forward currency contracts as a part of its investment strategy is a hedging technique that can protect against currency risks but also adds complexity to the investment process.

Investors must consider global economic indicators, such as inflation rates, GDP growth and monetary policies, when evaluating the potential performance of such investments. The Fund's ability to navigate these challenges and capitalize on opportunities will be crucial for maintaining its distribution rate and achieving its total return objective.

NEW YORK--(BUSINESS WIRE)-- Lazard Global Total Return and Income Fund, Inc. (the "Fund") (NYSE:LGI) is confirming today, as previously authorized by its Board of Directors pursuant to a Managed Distribution Policy, a monthly distribution of $0.10459, equivalent to 7% (annualized) of the Fund's net asset value per share as of the close of markets on December 31, 2023 on the Fund's outstanding common stock. The distribution is payable on January 22, 2024 to shareholders of record on January 11, 2024. The ex-dividend date is January 10, 2024.

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 $2 billion, and may include investments in emerging markets. The Fund also invests in emerging market currencies (primarily by entry into forward currency contracts), or instruments whose value is derived from the performance of an underlying emerging market currency, and also may invest in debt obligations, including government, government agency and corporate obligations and structured notes denominated in emerging market currencies.

An indirect subsidiary of Lazard, Inc. (NYSE: LAZ), Lazard Asset Management ("LAM"), the Fund's investment manager, offers a range of equity, fixed-income, and alternative investment products worldwide. As of November 30, 2023, LAM and affiliated asset management companies in the Lazard Group managed $235.9 billion worth of client assets. For more information about LAM, please go to www.LazardAssetManagement.com. Follow LAM at @LazardAsset.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240102045296/en/

Media:

Zoe Butt, +44 20 7448 2802

zoe.butt@lazard.com



Investors:

Ben Wulfsohn, +1 800 828 5548

ben.wulfsohn@lazard.com

Source: Lazard Global Total Return and Income Fund, Inc.

FAQ

What is the monthly distribution amount confirmed by Lazard Global Total Return and Income Fund, Inc. (LGI)?

The monthly distribution amount confirmed by LGI is $0.10459 per share, equivalent to 7% annualized of its net asset value.

When is the distribution payable to shareholders of Lazard Global Total Return and Income Fund, Inc. (LGI)?

The distribution is payable on January 22, 2024.

What is the investment objective of Lazard Global Total Return and Income Fund, Inc. (LGI)?

The investment objective of LGI is total return, consisting of capital appreciation and current income.

What is the total client assets managed by Lazard Asset Management and affiliated companies in the Lazard Group as of November 30, 2023?

As of November 30, 2023, LAM and affiliated asset management companies in the Lazard Group managed $235.9 billion worth of client assets.