18 Nov 2016 15:33
Lazard World Trust Fund (previously known as 'The World Trust Fund')
Fact Sheet - 30th September 2016
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
Commentary
The majority of developed markets posted positive gains in September on generally favorable economic news, including US industrial production and consumer spending, and UK economic confidence and spending. In the United States, the US Federal Reserve left rates unchanged, with three participants now expecting no hikes this year, up from zero in June. The record $14 billion fine levied by the United States against Deutsche Bank has raised capital concerns over Germany's largest bank and raised political tension between the two countries. In Europe, the European Central Bank also left the key policy rates unchanged. Emerging markets equities continued their strong outperformance over developed peers. Key Global investments, including HarbourVest Private Equity (+10%) and China-focused investments, like Naspers (+6%), drove Fund returns higher. Detracting from returns included investments in Philippines (First Pacific, -4%) and the United States (Tri-Continental Corp, -1%).
On 20 September 2016 the Fund held an Extraordinary General Meeting (EGM). The results of the EGM included authorization to tender up to 10% of outstanding shares and approval of the amended and restated investment management agreement, which included a change to the Fund's official benchmark to the MSCI All Country World Index ex-US. Also, the name of the Fund has been approved, and going forward will be known as the Lazard World Trust Fund.
Latest Investment Management Actions
The Fund decreased select European and North American focused investments, while increasing exposure to China through attractive and opportunistic investments. European exposure was further reduced by way of a market hedge (short ETF position), and exposure to the Japanese yen was also reduced by a short position in the currency.
Fund Description
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.
At a 13.3% traded discount, investors can own the Fund's underlying discounts, which trade at a further 29.9% discount. Combined, the double discount of the Fund is an astonishing 39.3%, which implies that every dollar invested in the Fund actually buys $1.64 worth of assets.
Lazard Asset Management LLC was appointed as Manager of Lazard World Trust Fund at the inception of the Fund, 1 July 1991.
Kun Deng is a Managing Director of Lazard Asset Management, responsible for the firm's Discounted Assets strategies in global, international, and emerging markets.
He has been advising Lazard World Trust Fund since 1997. Kun has the CFA charter.
Lazard Asset Management is known for its global perspective on investing and years of experience with global, regional, and domestic portfolios. With more than 300 investment personnel worldwide, and over US$ 180 billion in assets under management, we have 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.
Performance as of September 30th, 2016
Performance |
MTD |
YTD |
1-Year |
3-Year |
5-Year |
10-Year | Annualized since inception** |
Lazard World Trust Fund Price * (GBP) | 1.0% | 17.4% | 28.3% | 11.1% | 12.3% | 3.4% | 6.6% |
Lazard World Trust Fund NAV (GBP) | 3.1% | 14.5% | 26.6% | 11.8% | 12.9% | 4.2% | 7.3% |
Lazard World Trust Fund Price (US$) | -0.4% | 3.2% | 9.9% | 3.2% | 8.2% | -0.3% | 5.5% |
Lazard World Trust Fund NAV (US$) | 2.2% | 0.9% | 8.6% | 3.9% | 8.9% | 0.5% | 6.4% |
MSCI AC World Ex USA | 1.2% | 5.8% | 9.3% | 0.2% | 6.0% | 2.2% |
|
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 to pound 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$.
** Inception date 1 July 2009
The base currency of the Fund is in US dollars and the GBP quoted figure is a sterling rate equivalent.
Lazard World Trust Fund Annual NAV Performance (%)
| 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 |
Lazard World Trust Fund NAV (Net)* | 0.7 | 3.5 | 18.9 | 19.4 | -12.8 | 17.0 | 48.2 | -61.9 | 7.6 | 20.2 | 28.7 | 25.6 |
MSCI AC World Ex USA Index | -5.7 | -3.9 | 15.3 | 16.8 | -13.7 | 11.2 | 41.5 | -45.5 | 16.7 | 26.7 | 16.6 | 20.9 |
Source: Lazard Asset Management/FactSet
* The pre-2015 values relate to the fully Diluted NAV. The final subscription date for the exercise of warrants was 31 March 2014 and no additional warrant offers have been made since that date.
Net Regional Exposure
Region | % |
Asia (ex-Japan) | 39.2 |
North America | 16.0 |
Japan | 11.3 |
Europe (ex-UK) | 11.0 |
United Kingdom | 4.6 |
Latin America, Africa & Middle East | 3.0 |
Other | 2.5 |
Source: Lazard Asset Management
Top Holdings
Top 10 holdings as September 30, 2016 | Weight % | Discount % |
Naspers | 7.7% | -24.2% |
Harbourvest Global Private Equity | 6.1% | -24.9% |
Fidelity China Special Situations | 5.8% | -15.1% |
JPMorgan Japanese | 5.0% | -12.7% |
Tetragon Financial | 4.8% | -46.5% |
First Pacific | 4.8% | -54.8% |
JPMorgan Emerging Markets | 4.5% | -11.6% |
Vinacapital Vietnam Opportunities | 4.1% | -22.7% |
Investor AB | 4.0% | -25.5% |
JPMorgan Japan Smaller Companies | 3.8% | -12.0% |
Source: Lazard Asset Management / Morningstar (unless otherwise stated)
Portfolio Composition
Closed-Ended Investment Companies | 26.2% |
Investment Trusts | 50.0% |
Corporate Equities | 21.4% |
Source: Lazard Asset Management
Portfolio Exposure
Long | 97.6% |
Short | -10.1% |
Source: Lazard Asset Management
Fund Data
| GBP | US$ |
Market Capitalisation | 105.7m | 136.9m |
Total Assets | 122.2m | 158.3m |
Borrowings | Nil | |
Fully Diluted Net Asset Value | 3.352 | 4.345 |
Ordinary Share Market Price | 2.905 | 3.765 |
Discount/Premium | -13.3% | |
Source: State Street Bank
Company Information as at September 30th, 2016
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: | Capita Company Secretarial Services Limited Telephone: +44 1392 412122
|
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 |
The Fund has recently launched a new website on which 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 GB 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 (GBP) 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