LONDON (Alliance News) - Lazard World Trust Fund said Friday it revised it dividend policy in order to increase its distribution in a push to "enhance demand" for its shares.
The investment fund said it would pay out 6% of its net asset value - as calculated at the start of each financial year - as a dividend paid in quarterly instalments across the year.
"The revised policy is part of the board's strategy to enhance demand for the fund's shares," Lazard World Trust said in a statement. "The board believes that the increase in the level of dividend should broaden the appeal of the fund to potential new investors and is therefore in the best interest of the fund and its existing shareholders."
Should net income and revenue reserves be insufficient to cover the payments, the payments will be paid out of capital reserves.
The new dividend policy will be effective from the current year ending March 2019. The first such payment will be for the quarter ended June.
With regard to the year ended March 2018, Lazard World Trust declared a second interim dividend of 6.4925 pence per share. For the year, Lazard World Trust paid out 12.985p per share in dividends which is equivalent to 3.5% of its net asset value at the end of March 2017.
Shares in Lazard World Trust were 0.3% higher at 360.00 pence on Friday.