Lazard Global Total Return and Income Fund Declares Monthly Distribution and Issues Estimated Sources of the Distribution Announced in December

Rhea-AI Summary

Lazard Global Total Return and Income Fund, Inc. (LGI) has confirmed a monthly distribution of $0.10459 per share on its outstanding common stock, payable on February 22, 2024. The distribution consists of a 100% return of capital. The average annual total return for the 5-year period ending on December 31, 2023, was 11.59%. The annualized current distribution rate expressed as a percentage of NAV as of December 31, 2023, was 6.25%. The cumulative total return for the fiscal year through December 31, 2023, was 19.68%, with cumulative fiscal year distributions as a percentage of NAV as of December 31, 2023, at 2.60%.

Insights

Financial Analyst

The announcement from Lazard Global Total Return and Income Fund regarding its monthly distribution is a significant indicator of the Fund's current cash flow positioning and capital allocation strategy. The distribution is entirely categorized as a return of capital, which implies that the Fund is not deriving this payout from its net income or realized capital gains. This could suggest that the Fund's investments have not yielded sufficient income or gains, or alternatively, it may be part of a strategic approach to provide steady distributions to investors.

From a financial analysis standpoint, the annualized current distribution rate of 6.25% relative to the Net Asset Value (NAV) as of the end of the last fiscal year is a critical figure. It provides investors with insight into the yield they can expect from holding shares in the Fund. However, a distribution rate that exceeds the Fund's income can be unsustainable in the long term unless supported by capital appreciation. Furthermore, the average annual total return of 11.59% over the past five years, juxtaposed with the cumulative total return of 19.68% for the last fiscal year, indicates robust performance, although investors should be cautious about the sustainability of such returns.

Tax Advisor

For shareholders, the nature of the distribution is paramount for tax implications. Since the distribution is classified as a return of capital, it is not immediately taxable as income. Instead, it reduces the cost basis of the investment, which could potentially increase capital gains tax liability when shares are sold. The discrepancy between accounting principles and federal income tax regulations mentioned in the announcement is crucial. Investors should consult with their tax advisors to understand the personal tax consequences of these distributions, especially since the entire distribution is categorized as a return of capital, which is not common for income-focused funds.

Market Research Analyst

Investors and market analysts often scrutinize distribution policies as they reflect a fund's operational health and market strategy. The cumulative fiscal year distributions as a percentage of NAV standing at 2.60% may be compared to industry benchmarks to evaluate the Fund's performance. An entirely return of capital distribution could be perceived as a red flag, prompting a deeper look into the Fund's portfolio performance and management efficiency. Additionally, the market will likely monitor future distributions to assess whether the Fund's strategy shifts towards generating and distributing income from its actual earnings or continues with the return of capital approach.

NEW YORK--(BUSINESS WIRE)-- Lazard Global Total Return and Income Fund, Inc. (the "Fund") (NYSE:LGI) is confirming today, pursuant to its Managed Distribution Policy, as previously authorized by its Board of Directors, a monthly distribution of $0.10459 per share on the Fund’s outstanding common stock. The distribution is payable on February 22, 2024 to shareholders of record on February 13, 2024. The ex-dividend date is February 12, 2024.

The Fund will pay a previously declared distribution today, January 22, 2024. The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid for the year to date from the following sources: net investment income, net realized capital gains (short-term and long-term), and return of capital. All amounts are expressed per share of common stock and are based on accounting principles generally accepted in the US, which may differ from federal income tax regulations.

	Current Distribution		% of the Current Distribution		Total Cumulative Distributions for the Fiscal Year to Date		% of the Total Cumulative Distributions for the Fiscal Year to Date
Net Income	$0.00000		0%		$0.00000		0%
Net Realized Short-Term Capital Gains	$0.00000		0%		$0.00000		0%
Net Realized Long-Term Capital Gains	$0.00000		0%		$0.00000		0%
Return of Capital	$0.10459		100%		$0.10459		100%
Total	$0.10459		100%		$0.10459		100%

Average annual total return (in relation to NAV) for the 5-year period ending on December 31, 2023	11.59%
Annualized current distribution rate expressed as a percentage of NAV as of December 31, 2023	6.25%
Cumulative total return (in relation to NAV) for the fiscal year through December 31, 2023	19.68%
Cumulative fiscal year distributions as a percentage of NAV as of December 31, 2023	2.60%

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 December 31, 2023, 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 $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 Ltd (NYSE: LAZ), LAM, the Fund's investment manager, offers a range of equity, fixed-income, and alternative investment products worldwide. As of December 31, 2023, LAM and affiliated asset management companies in the Lazard Group managed $246.7 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/20240122664083/en/

Media contact:

Zoe Butt, +44 20 7448 2802

zoe.butt@lazard.com



Investor contact:

Ben Wulfsohn, +1 800 823 6300

ben.wulfsohn@lazard.com

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

FAQ

What is the monthly distribution per share for Lazard Global Total Return and Income Fund, Inc. (LGI)?

The monthly distribution per share for LGI is $0.10459.

When is the distribution payable for LGI?

The distribution is payable on February 22, 2024.

What is the average annual total return for LGI for the 5-year period ending on December 31, 2023?

The average annual total return for LGI for the 5-year period ending on December 31, 2023, was 11.59%.

What is the cumulative total return for LGI for the fiscal year through December 31, 2023?

The cumulative total return for LGI for the fiscal year through December 31, 2023, was 19.68%.

What is the annualized current distribution rate for LGI as a percentage of NAV as of December 31, 2023?

The annualized current distribution rate for LGI as a percentage of NAV as of December 31, 2023, was 6.25%.