Source - RNS
RNS Number : 4291K
Lazard World Trust Fund
10 April 2018
 

Lazard World Trust Fund (previously known as 'The World Trust Fund')

Fact Sheet - 28 th February 2018

 

Société d'Investissement à Capital Fixe

Registered office: 49, avenue J.F. Kennedy, L-1855 Luxembourg

Grand Duchy of Luxembourg, R.C.S. Luxembourg No. B 37.154

 

Investment Objective

Lazard World Trust Fund (the 'Fund') seeks to achieve long-term capital appreciation by investing primarily in companies whose shares trade at a discount to their underlying Net Asset Value. The Fund measures its performance principally against the MSCI All Countries World (ex US) Index, although Lazard Asset Management LLC (the 'Manager') seeks to achieve the highest possible risk-adjusted returns. The allocation of the Fund's assets will normally diverge substantially from the Index.

 

The Fund seeks to achieve long-term capital appreciation by investing primarily in a diversified portfolio of companies whose shares trade at a discount to the underlying net asset value. The Fund may also sell short stock indices, stocks, and shares of exchange-traded funds or closed-end funds, not exceeding 100% of the Fund's net assets.

 

The Fund pays dividends twice a year that together amount to a total annual dividend equivalent to 3.5% of Net Asset Value at the start of each financial year.

 

The Final dividend for financial year ending 2018, of approximately 6.5p, is scheduled to be paid in September 2018 with 6.7p to be paid in January 2019, subject to shareholder approval.

 

Fund Data

 

Net Asset Value

£4.039

Share Price

£3.79

Discount

-6.2%

Total Assets

£147.0m

Gearing

Nil

Yield

3.5%

Source: State Street Bank

 

Kun Deng is a Managing Director of Lazard Asset Management, responsible for the firm's Discounted Assets strategies in global, international, and emerging markets.

 

He has been advising Lazard World Trust Fund since 1997. Kun has the CFA charter.

 

Lazard Asset Management is known for its global perspective on investing and years of experience with global, regional, and domestic portfolios. With more than 300 investment personnel worldwide, and approximately US$294 billion in assets under management, it has offices located throughout the world in Bahrain, Boston, Frankfurt, Hong Kong, London, Madrid, Milan, Montreal, New York, San Francisco, Seoul, Sydney, Tokyo, Toronto, and Zurich.

 

Lazard Asset Management LLC was appointed as Manager of Lazard World Trust Fund at the inception of the Fund, 1 July 1991.

 

Top Holdings

 

Top 10 holdings as February 28th, 2018

Weight %

Discount %

Fidelity China Special Situations

6.5

-12.4

Altaba

6.3

-27.8

JPMorgan Japanese

5.4

-11.0

JPMorgan Japan Smaller Companies

5.1

-13.2

VinaCapital Vietnam Opportunity

4.9

-19.2

JPMorgan Emerging Markets

4.7

-11.9

Morgan Stanley China A Share

4.7

-14.2

Investor AB

4.5

-26.1

Fondul Proprietatea

4.4

-24.5

Naspers Ltd

4.2

-35.6

 

Net Regional Exposure

 

Region

%

Asia (ex-Japan)

42.0

North America

8.5

Japan

13.8

Europe (ex-UK)

20.6

United Kingdom

7.8

Latin America, Africa & Middle East

3.9

Other

3.0

Source: Lazard Asset Management

 

Performance as of February 28th, 2018

 

 

Performance

 

 

MTD

 

 

YTD

 

 

1-Year

 

 

3-Year

 

 

5-Year

 

 

10-Year

Annualized since inception**

Lazard World Trust Fund Price * (£)

-2.8%

-0.5%

19.1%

16.8%

13.5%

6.2%

6.3%

Lazard World Trust Fund NAV (£)

-2.6%

-0.2%

14.6%

13.4%

11.9%

5.9%

7.9%

MSCI AC World Ex USA

-1.7%

-1.2%

9.9%

10.4%

8.4%

6.5%

N/A

 

Source: Lazard Asset Management/MSCI

* As at 1 November 2009 the currency in which the shares of the Fund are traded changed from US dollars (US$) to UK Sterling (£). Past performance data up to and including 31 October 2009 has been re-calculated using exchange rates provided by Bloomberg. Past performance data from 1 November 2009 is calculated using exchange rates provided by State Street Bank. The Fund's base currency for valuation and performance fee calculation purposes remains as US$.

 

** Inception date 1 July 1991

 

Manager's Comment

International equities pulled back in February from extended levels. Some inflationary US macroeconomic data and more hawkish rhetoric from the Federal Reserve resulted in rising bond yields and fears of overheating. With equities expensive by most historic standards and volatility at historic lows, the market was vulnerable to any concerns and duly saw a sharp sell-off over several days of the month. However, with growth picking up and rates still low, the extent of any falls remained limited for now. The declines were heavily influenced by automated selling and index trades, which resulted in a fairly uniform fall across sectors, regions and types of company.  Driving Fund returns higher were investments in S.C. Fondul Proprietatea (+4.9%), Macau Property Opportunities Fund (+4.8%) and Softbank (+4.6%) while detracting from performance were investments in Fidelity China Special Situations (-4.5%), First Pacific (-9.6%) and JPMorgan Japanese Investment Trust (-4.2%).

 

The Lazard World Trust Fund price, as traded on the London Stock Exchange, is currently at a discount of -6.2% to the Fund's net asset value per share. The Fund's underlying investments were priced at an average discount of -23.2% to their net asset value. Adding the two discounts together, the Fund is currently trading at an effective discount of -28.0%, which implies that every pound invested in the Fund buys £1.39 worth of assets.

 

Long Portfolio Composition

 

Closed-Ended Investment Companies

23.8%

Investment Trusts

47.7%

Corporate Equities

28.1%

Source: Lazard Asset Management

 

Portfolio Exposure

 

Long

99.6 %

Short

0 %

Source: Lazard Asset Management

 

Lazard World Trust Fund Annual NAV Performance (%)

 

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

Lazard World Trust Fund (Fully-Diluted NAV) (£)*

22.8

17.75

6.64

10.08

16.67

14.15

-12.18

20.74

31.95

-47.021

5.79

5.39

43.91

17.08

MSCI AC World Ex USA Index

16.2

24.64

-0.2

2.11

13.15

11.7

-13.07

14.65

25.94

-24.58

14.69

11.1

30.42

12.74

 

Source: Lazard Asset Management/FactSet

 

* The pre-2015 values relate to the fully Diluted NAV. The final subscription date for the exercise of warrants was 31 March 2014 and no additional warrant offers have been made since that date.

 

Company Information as at February 28th, 2018

 

46,635,770 Ordinary shares in issue (including 10,252,277 Treasury shares) = Luxembourg denominator

36,383,493 Ordinary shares (excluding 10,252,277  Treasury shares) = FCA denominator

Ticker:

WTR

ISIN:

LU0483266259

 

Benchmark:

 

MSCI All Countries World Index ex USA

 

Contact Details

 

Fund Manager:

Lazard Asset Management LLC

30 Rockefeller Plaza

New York

NY 10112

USA

Telephone:  +1212 632 6000

 

Company Secretary:

Link Company Matters

Telephone: +44 207 954 9599

 

Registered Office:

Société d'Investissement à Capital Fixe

49, avenue J.F. Kennedy, L-1855 Luxembourg

Grand Duchy of Luxembourg, R.C.S. Luxembourg No. B 37.154

 

Directors:

Philip McLoughlin (Chairman)

Duncan Budge

James Cave

Howard Myles

Tony Morrongiello

 

Company Broker:

Cenkos Securities plc

Contact:  Andrew Worne

Telephone:  +44 (20) 7397 1912

 

Further copies of the Factsheet are available at:

www.lazardworldtrustfund.com 

 

NMPI Status

The Company currently conducts its affairs so that its securities can be recommended by IFAs to ordinary retail investors in accordance with the FCA's rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future. The securities are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in an investment trust.

 

Important Information

This is a financial promotion and is not intended to be investment advice.

 

Securities identified in this document are not necessarily held by Lazard Asset Management for all client portfolios, and should not be considered as a recommendation or solicitation to purchase, sell or hold these securities. It should also not be assumed that any investment in these securities was, or will be, profitable.

 

Information and opinions contained within this document are derived from sources believed by Lazard to be reliable. Lazard makes no representation as to their accuracy or completeness. All opinions are as at the date of this document and are subject to change without notice.

 

Lazard World Trust Fund is an investment company incorporated in Luxembourg, whose shares are listed and traded on the London Stock Exchange.

 

Past performance is not a reliable indicator of future results. The value of investments and the income from them may go down as well as up and investors may not get back the amount originally invested.

 

Investors are reminded that although the shares of the Fund are listed in UK Sterling (£), the base currency of the Fund is US dollars. Therefore, in addition to the fluctuations in the rate of exchange between the currency in which shares are denominated (US$) and the base currencies of the underlying investments that may affect the value of your investment both positively and negatively, changes in rates of exchange between the Fund's base currency and the currency in which it is listed (£) may also have the effect of causing the value of your investment to fluctuate.

 

Certain information included herein is derived by Lazard in part from an MSCI index or indices (the "Index Data"). However, MSCI has not reviewed this product or report, and does not endorse or express any opinion regarding this product or report or any analysis or other information contained herein or the author or source of any such information or analysis. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any Index Data or data derived therefrom. The MSCI Index Data may not be further redistributed or used as a basis for other indices or any securities or financial products.

 

There is no assurance that Lazard World Trust Fund's objectives or performance targets will be achieved.

 

This financial promotion is issued and approved by:

Lazard Asset Management Limited, 50 Stratton Street, London W1J 8LL

 

Lazard Asset Management Limited is incorporated in England and Wales with registered number 525667. It is authorised and regulated by the Financial Conduct Authority

 

Listing Category: Premium - Equity Closed-ended Investment Fund 

 


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