Lazard World Trust Fund’s net asset value rose 5.9% on a total return basis, compared with the gain of 6.2% of the MSCI All Country World ex-USA Index during the six-month period ended 30 September 2016. The Fund’s share price, as traded on the London Stock Exchange, was up 8.6% (dividends reinvested) as the discount narrowed.
The Funds’ performance was primarily driven by investments in Asia. Chinese investments fared well, led by Naspers (+23.5%) and Fidelity China Special Situations (+17%). JPMorgan Japanese Investment Trust and Jardine Strategic both gained 10%. Frontier markets investments also performed well, with S.C. Fondul Proprietatea (Romania) up over 15% and VinaCapital Vietnam Opportunity Fund up over 22%.
Investments in Europe were the main detractors from performance. Developed European investments were hurt by discount widening of Eurazeo (-7.4%), and JP Morgan European Smaller Companies Trust (-0.7%), Also, Haci Omer Sabanci Holding, a Turkey-focused holding company, fell nearly 10%, as investor sentiment in Turkey reacted to the news of a failed military coup in that country. Some emerging markets investments detracted despite a generally positive backdrop.
Naspers, VinaCapital Vietnam Opportunity, International Biotechnology, Morgan Stanley China A Share and JPMorgan Japanese were the top five performers during the period. Marwyn Value, Eurazeo, China Fund, First Pacific and Haci Omer Sabanci holding were the funds that took most away from returns.
WTR : Lazard World Trust discount narrows