Lazard World Trust Fund reports decent year as it introduces 6% yield – Lazard World Trust Fund says that, for the year ended March 31 2018, the total return on its net asset value was 20.9%, which compares favourably with its benchmark, the MSCI All Country World Index ex-U.S., which increased 16.5%.
A revised dividend policy, effective for the accounting year commencing April 1, 2018, has been introduced. The fund will pay a total annual dividend equivalent to 6% of NAV (calculated at the start of each financial year and payable in equal quarterly installments). For this year, the revised dividend policy will result in the payment of a total dividend of 23.34 pence per share (based on an NAV of £3.89 as at March 31st, 2018), payable in 4 equal installments, commencing with a dividend of 5.835p in relation to the quarter ended June 30th, 2018.
The manager says that its investments in emerging Asia, developed Europe, and global investment companies were the primary drivers of performance over the period. In emerging Asia, China-focused investments performed strongly, led by Naspers (+41.3%) and Fidelity China Special Situations (+38.6%). Developed Europe investments were led higher by French investment company, Eurazeo (+49.0%), and UK small cap specialist, Henderson Smaller Companies Investment Trust (+37.8%). Global investments, including small cap specialist, Herald Investment Trust (+38.3%), and private equity investment company, JPEL Private Equity (+78.4%), contributed significantly to returns.
Investments in Latin America and emerging Europe were the main detractors from performance. In Latin America, Brazil-focused private equity holding, GP Investments, fell by 8.1%, compared to local Brazilian equities which rose more than 26%. The discount on GP is among the widest in the Fund, trading at a discount of 38%, which is 11% wider than in emerging markets generally. Turkey-focused holding company, Haci Omer Sabanci (-1.7%) fell marginally, mainly due to the discount expansion of over 4%. Sabanci traded on a discount of 37.3% at the end of the period. In addition, a number of the Fund’s holdings went through corporate actions.
WTR : Lazard World Trust Fund reports decent year as it introduces 6% yield