WTR.L Regulatory News (WTR)

Lazard World Trust Fund

Unaudited Half-Yearly Report

September 30th, 2016

Financial Highlights for the six months ended September 30th, 2016

Note: Rate of exchange used to calculate the figures that appear above is the rate of exchange as at September 30th, 2016: US$1.2961 to every £1.

Corporate Information

Directors

Philip R. McLoughlin* (Chairman)

Duncan Budge *†

James Cave *††

Tony Morrongiello*†

Howard Myles**†

* Member of the Audit Committee

** Chairman of the Audit Committee

† Member of the Nominations Committee

†† Chairman of the Nominations Committee

General Information

• NAV stands for Net Asset Value and represents shareholders' funds expressed as an amount per individual share. Shareholders' funds are the total value of the Fund's assets at current market value less its liabilities.

• During the period under review the Fund changed its name to Lazard World Trust Fund (previously The World Trust Fund).

• During the period under review the Fund changed its benchmark to MSCI All Country World Index (ex US) from MSCI All Country World Index.

• During the period under review the Fund undertook a Tender Offer of 10% of the shares in issue and on September 29th, acquired 4,042,602 shares at a price of 322.1776 pence per share.

• The Net Asset Value per Share is expressed in US Dollars ("US$") and, since October 30th, 2009 the Fund's shares are traded in Pounds Sterling ("£"). For information purposes only the Fund's Net Asset Value per Share since October 30th, 2009 is also reported in its Pounds Sterling equivalent.

• Unaudited half-yearly reports and audited annual reports are made available at the Registered Office of the Fund and are posted to each registered Shareholder.

• The Annual General Meeting of Shareholders is held in Luxembourg each year at 3 p.m. on the third Tuesday in August or, if any such day is not a business day for banks in Luxembourg, on the following business day. Notices of General Meetings, including their agenda, time and place and containing details of attendance, quorum and majority requirements under Luxembourg law, will be sent to the registered address of Shareholders not less than 21 days before the date of the Meeting.

• Annual Reports (including audited accounts) will be mailed to Shareholders not less than 21 days before the day fixed for the Annual General Meeting at which they are to be considered.

• The Shares of the Fund are listed on the main market of the London Stock Exchange and the Luxembourg Stock Exchange.

• An interim dividend of 5.1p per share has been declared in respect of the year to March 31st, 2017, which is payable on January 16th, 2017, to shareholders who appear on the register on December 16th, 2016. Including the final dividend for the year to March 31st, 2016 the total dividend paid or payable during the financial year to March 31st, 2017 is 10.5p per share or 3.6% of the Fund's share price as at September 30th, 2016 (290.5p).

Regulatory Disclosure

Related Party Transactions

During the six months to September 30th, 2016 no new transactions with related parties were undertaken. Full details of the Fund's existing related party transactions can be found in Note 14 below.

Principal Risks and Uncertainties

Key risks faced by the Fund relate to poor investment and strategic decisions resulting in poor fund performance; a change in circumstances of the Manager resulting in the Manager's inability to carry out its duties, gearing risk which may exaggerate any fall in the value of the Fund's assets; discount volatility - the Fund's share price may fall disproportionately to the Fund's Net Asset Value; reputational - failure to keep current and potential investors informed of the Fund's performance and development could lower investor confidence. A detailed explanation of the Risks and Uncertainties facing the Fund can be found on pages 15 under the heading 'Principal risks and uncertainties' in the Report and Accounts for the year ended March 31st, 2016.

Directors' Responsibility Statement

In accordance with Rule 4.2.7R and 4.2.8R of the Disclosure and Transparency Rules of the United Kingdom Financial Conduct Authority, the Directors confirm that, to the best of their knowledge:

a) the financial statements, which have been prepared in accordance with the applicable set of accounting standards (being the legal and regulatory requirements in Luxembourg relating to investment funds) give a true and fair view of the assets, liabilities, financial position and profit or loss of the Fund as at September 30th, 2016 and for the financial period then ended;

b) the Manager's Review includes a fair review of the development and performance of the business and the position of the Fund;

c) the Directors' Statement of Principal Risks and Uncertainties shown above is a fair review for the remainder of the financial year; and

d) the financial statements include a fair review of any related party transactions that have materially affected the financial position or the performance of the Fund and any changes to the related party transactions described in the last Annual Report that could have a material effect on the financial position or performance of the Fund.

On behalf of the Board

Philip R. McLoughlin

Chairman

November 29th, 2016

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 Country World (ex US) Index, although Lazard Asset Management LLC (the 'Manager') seeks to achieve the highest possible long term risk-adjusted returns and the allocation of the Fund's assets will normally diverge substantially from the Index.

Investment Policy

Asset Allocation

The Fund invests in closed-end funds, investment trusts, holding companies and other comparable companies whose shares are listed or traded on international exchanges and are generally at a discount to their underlying Net Asset Value. The Fund seeks actively to encourage boards and management teams to take steps to enhance shareholder value and seeks to take a constructive and active role to help reduce the discount at which the shares of portfolio companies trade.

Risk Diversification

The Fund seeks to provide broad exposure to equity markets through holding a diversified portfolio of closed-end investment companies, holding companies and comparable quoted companies that typically trade at a discount to their intrinsic value.

Gearing and Hedging

The Fund may use gearing (the ability to borrow), and the level of gearing may vary from time to time. The Board has authorised the Manager to use gearing of up to 15% of the Fund's Net Asset Value. The Board has the power to increase the amount of gearing that the Manager is authorised to use up to 25% of the Fund's Net Asset Value. Shareholders should note that gearing increases the scale of any profits or losses.

The Fund is permitted to seek to hedge long positions by selling short stock indices, stocks, and shares of exchange traded funds or closed-end funds up to 100% of the Fund's Net Asset Value. The Fund may also hedge its currency exposure against the US Dollar. Shareholders should note that the use of such techniques involves risks, including potentially significantly larger losses on short positions than long positions.

Manager's Review

For the six months from April 1, 2016 to September 30, 2016

Market Review

Equity markets gained over the six-month period, but not without significant volatility. A slow but steady market rally early in the year, including a strong recovery in emerging markets, was suddenly derailed by the Brexit vote, the outcome of which caught global markets by surprise. Accommodative monetary policies around the world, including the U.S. Fed holding off on rate increases, calmed investors. Financial markets slowly recovered in the weeks following the Brexit vote.

Commodity prices recovered, helping a general recovery in emerging market currencies and equities. After years of outflows, investors poured money into the emerging markets seeking to access improving corporate earnings and economic growth. In addition, interest rates in those countries are generally higher and valuations are more attractive than developed markets.

Developed equity markets have been lacklustre, having been dominated by political events and the election cycles particularly in the United States and Europe. Investor concerns seem to have heightened over government debt levels and slow economic recoveries in most developed nations. The general failure thus far of negative interest rate policies to stimulate demand and economic growth, particularly in Europe, have further added to investor fears. Geopolitical and humanitarian crises still loom large in the European region, which has increased pressure on the very future of the European Union's (EU) existence. Forthcoming elections in major European nations, along with key referendums like that on Brexit and the Italian referendum, may prove to be key determinants in the future and strength of the EU.

Fund Performance Review (all figures in US dollars)

Lazard World Trust Fund's net asset value (NAV) 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. The Fund's share price, as traded on the London Stock Exchange, was up 8.6% (dividends reinvested).

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.

Fund Data/Information

*Converted into US dollars using foreign exchange rates as determined by the Administrator.

The Portfolio

Top Five Contributors to Returns (NAV)

Top Five Detractors from Returns (NAV)

Top Ten Country Weights as of September 30th, 2016

Regional and country allocations are the result of our bottom-up stock selection process, which is focused on identifying companies that trade at compelling discounts and owning assets that are undervalued.

Portfolio Hedging

During the period, the Fund established three short positions designed as a hedge against downside market risks.

• 5% short position in a S&P 500 ETF to hedge the Fund's exposure to the U.S. market. The position was closed prior to the end of

the period and generated a positive return.

• 9% short position in a FTSE Europe ETF to hedge the Fund's exposure to Europe, which over the period detracted from returns.

• 5% short position in the Japanese yen to hedge the Fund's yen exposure, and solidify the over 18% rally in the yen (vs. USD) for

2016 YTD. Over the period this position detracted from returns.

Corporate Governance Initiatives and Restructuring

The following initiatives occurred over the period:

• Restructuring: JPMorgan Private Equity announced it will sell down the assets in the portfolio in an orderly fashion starting in

2017 and conduct significant tender offers annually.

• Distributions: Fondul Proprietatea resumed a buyback program that will ultimately repurchase 5.4% of outstanding shares.

Tetragon Financial announced a US$ 100 million share repurchase through a modified Dutch auction. China Merchants paid a

special dividend of 7%.

Discounts & Tender

The Fund traded at an average discount of 13.8% during the period, ranging from a high of 18.2% to a low of 10.5%. At the end of the period, the Fund's discount was 13.3%.

Both the Board and the Manager actively monitor the Fund's discount. On September 20th, 2016 shareholders approved a Board proposal authorizing the Fund to tender for 10% of outstanding shares, at a discount of 2% to NAV, intended to help narrow the Fund's discount.

Outlook and Update

In our view, global equity markets will continue to be volatile. We also believe that the U.S. equity markets will remain focused on potential tightening of monetary conditions. In Europe the unknowns surrounding major elections, particularly in Germany and France, and the referendums, especially in the UK and Italy, will dominate the macro picture and most likely equity volatility. We are also watching closely the continuation of the immigration problem, potential banking reforms and the limited options the European Central Bank (ECB) has to stimulate growth and prevent a banking crisis. Positive developments in Japan, related to both corporate governance and economic reforms, should prove to be beneficial over the long term. The emerging markets, with continued corporate earnings, economic growth, and favourable valuations presently look to us like very attractive opportunities for long term investors. The Fund maintains substantial exposures to the emerging markets, not only driven by our positive view on the macro and fundamental environment, but also due to the wide discounts the opportunities there present. The results of the recent US elections have not changed our view.

Lazard World Trust Fund is a unique vehicle looking for investment opportunities on a global basis, with the ability to hedge equity and currency exposures. At a discount of 13.3% investors can gain exposure to the Fund's underlying investments, which trade at a further 29.9% discount. Combined, the effective discount of the Fund is 40%, which implies that every dollar invested in the Fund actually buys US$ 1.64 worth of assets.

Kun Deng, CFA

Lazard Asset Management LLC

Manager

November 29th, 2016

Statement of Net Assets (in US$)

The accompanying notes are an integral part of the financial statements.

The accompanying notes are an integral part of the financial statements.

* Result of Operations is the sum of Net Investment Income, Total Net Realised Gain/(Loss) and Total Change in Unrealised Gain/(Loss).

The accompanying notes are an integral part of the financial statements.

Notes to the Financial Statements September 30th, 2016

Note 1 - General

Lazard World Trust Fund (the "Fund"), previously known as The World Trust Fund, is an investment company with limited liability organised as a 'société anonyme' under the laws of the Grand Duchy of Luxembourg and is governed by part II of the Luxembourg Law of December 17th, 2010 as amended on Undertakings for Collective Investment, the amended Law of August 10th, 1915 on commercial companies and the Law of July 12th, 2013 on Alternative Investment Fund Managers ("AIFM").

At an Extraordinary General Meeting held on May 9th, 2016 the Fund changed its name to Lazard Wold Trust Fund. The Fund was incorporated in Luxembourg on June 20th, 1991 for an unlimited duration. The Fund's Articles of Incorporation (the "Articles") have been published in the 'Mémorial C, Recueil des Sociétés et Associations'.

The Fund's investment objective is to achieve long-term capital appreciation, by investing primarily in companies whose shares trade at a discount to their underlying Net Asset Value ("NAV"). The Fund measures its performance against the MSCI All Countries ("AC") World Index, although the Manager seeks to achieve the highest possible risk-adjusted returns and the allocation of the Fund's assets will normally diverge substantially from the Index, in particular in relation to its weighting in the US markets. The Fund invests in a diversified portfolio of investment companies, including closed-end funds, investment trusts, holding companies and similarly traded companies, thereby spreading investment risk and reducing stock specific risk.

The currency in which the Fund's Shares are traded was changed from US$ to £ on October 30th, 2009.

The equivalent NAV per share in £ represents the NAV per share in US$ converted with the exchange rate at September 30th, 2016 (Note 2).

The Fund has appointed Lazard Asset Management LLC (the "Manager") as its non-EU AIFM within the meaning of 1(48) of the AIFM Law dated July 12th, 2013. Pursuant to the Management Agreement, the Manager is responsible on a day- to-day basis under the supervision of the Board of Directors of the Fund for providing investment management and risk management services in respect of the Fund in accordance with the investment objectives of the Fund.

The Directors consider that the Company has adequate resources to enable it to continue in operational existence for the foreseeable future. Accordingly, the Directors believe that it is appropriate to adopt the going concern basis in preparing the Company's financial statements.

Note 2 - Significant Accounting Policies

a) Presentation of Accounts

The financial statements are presented in accordance with generally accepted accounting principles and with the legal and regulatory requirements relating to the preparation of the financial statements as prescribed by the Luxembourg authorities for Luxembourg investment companies. The Fund keeps its books and records in US$.

b) Valuation

1) The NAV per share is calculated in accordance with Article 22 of the Articles on each Valuation Date (as defined in the Articles).

The NAV per share is determined by dividing the Net Assets of the Fund, being the value of its assets less liabilities, by the number of Shares then in issue.

2) In calculating the NAV per Share, income and expenditure are treated as accruing from day to day and the

Articles provide, inter alia, that:

(i)securities which are quoted or dealt in on any stock exchange or other regulated market are valued at the settlement or closing price on the last full business day on which such exchange or market is open for trading preceding the applicable Valuation Date;

(ii) if securities are quoted, listed, traded or dealt on more than one stock exchange or regulated market, the Board of Directors of the Fund (the "Board") may select for the purposes of valuation the stock exchange or regulated market which they consider provides the fairest criterion of value for the relevant securities; and

(iii) if securities are not quoted or dealt on any stock exchange or regulated market or if, with respect to securities quoted or dealt on any stock exchange or dealt on any regulated market, the price as determined pursuant to paragraph (i) above is not representative of the fair market value of the relevant securities,

the value of such securities will be determined by reference to their reasonably foreseeable sales price determined prudently and in good faith by the Board.

3) Investments in securities are recorded at cost on trade date basis. Realised gains or losses on securities sold are computed on an average cost basis.

4)The value of cash in hand or on deposit, bills and notes payable on presentation, accounts due, prepaid expenses and dividends and interest declared and fallen due but not yet received generally consists of the nominal value of such assets. However, in the event that it seems improbable that such value can be realised, the value is determined by deducting a sum which the Board considers appropriate to reflect the realisable value of such asset.

5) Foreign currencies: monetary assets and liabilities denominated in foreign currencies in the Statement of Net Assets are translated into US$ at the rates of exchange ruling at the end of the year. Transactions in foreign currencies are recorded in US$ based on the exchange rates applicable at the date of the transactions.

The following significant exchange rates have been applied for the conversion of monetary assets and liabilities denominated in foreign currencies into US$ as of September 30th, 2016:

c) Income Recognition

Dividend income is recorded on an accrual basis and interest income is accrued on a daily basis, net of any withholding taxes in the relevant country.

d) Forward Foreign Currency Contracts

The Fund may, for the purpose of hedging currency risks, enter into forward exchange contracts.

In a forward foreign exchange contract, the Fund agrees to receive or deliver a fixed quantity of one currency for another, at a pre-determined price at a future date. Purchases and sales of forward foreign exchange contracts having the same notional value, settlement date and counterparty and right to settle net are generally offset (which result in a net foreign currency position of zero with the counterparty) and any realised gains or losses are recognised on trade date plus one.

The market value of forward foreign exchange contracts is based on the price at which a new forward foreign exchange contract of the same notional value, currency and maturity could be affected at the close of business in the principal currency markets in which these currencies are traded. That change in unrealised gains and losses are included in the statement of operations.

e) Transaction Fees

For the period ended September 30th, 2016, the Fund incurred transaction fees related to purchase and sale of transferable securities for US$ 128,555.

The transaction costs include broker fees, settlement fees, taxes and other charges. That amount is included in the custodian fees caption.

Note 3 - Management and Performance Related Fees

The Manager is entitled to receive, under the terms of the Management Agreement, a fee at the rate of 0.75% per annum calculated each quarter by reference to the average weekly NAV during the relevant quarter. The fee will accrue daily and will be paid quarterly in arrears.

The Company and the Manager have entered into the Amended and Restated Investment Management Agreement which has been amended to reflect that the New Benchmark Index (MSCI All Country World Index (ex US)) shall be the reference benchmark for calculating performance fees from April 1st, 2016.

For the purposes of this amended performance-fee calculation, "Hurdle" means: (i) in respect of the Performance Period ending March 31st, 2017, the percentage increase in the Current Benchmark Index in respect of the 12 months ended March 31st, 2016 plus the percentage increase in the New Benchmark Index in respect of the 12 months ended March 31st, 2017 (pro-rated in the event that the Amended and Restated Investment Management Agreement is terminated prior to that date); and (ii) in respect of all subsequent Performance Periods, the percentage increase in the New Benchmark Index during the relevant Performance Period. "Performance Period" refers to: (i) the period of the two years preceding the end of the accounting period of the Company; or (ii) if the Amended and Restated Investment Management Agreement is terminated other than at the end of an accounting period of the Company, the period between: (a) the commencement of the penultimate accounting period of the Company; and (b) the date of termination.

Pursuant to the terms of the Amended and Restated Investment Management Agreement, the Company shall pay the Manager a performance-related fee at the rate of:

(i) 5% of the amount by which the increase in the Net Asset Value (expressed as a percentage) has exceeded the Hurdle by 5% or more but by less than 10% during the Performance Period per annum;

(ii) 10% of the amount by which the increase in the Net Asset Value (expressed as a percentage) has exceeded the Hurdle by 10% or more, but by less than 15% during the Performance Period per annum;

(iii) 15% of the amount by which the increase in the Net Asset Value (expressed as a percentage) has exceeded the Hurdle by 15% or more, but by less than 20% during the Performance Period per annum;

(iv) 20% of the amount by which the increase in the Net Asset Value (expressed as percentage) has exceeded the Hurdle by 20% or more during the Performance Period per annum;

in each case multiplied by the Net Asset Value as at the end of the relevant Performance Period and provided that the Hurdle is positive. If the Hurdle is negative, the Manager shall not be due a performance fee even if the Net Asset Value performance exceeds the Hurdle during the relevant Performance Period.

For the period ended September 30th, 2016 there was no performance fee payable by the Fund.

Out of its fees the Manager will pay its own expenses and those of any investment advisers retained by it. The Manager's contract can be terminated by either party by providing 3 months' notice.

Note 4 - Taxes

As a Luxembourg investment company, under present laws the Fund is not subject to income taxes in Luxembourg. Irrecoverable taxes may be withheld at the source on dividends and interest received on investment securities.

According to the Law of December 17th, 2010 as amended, the Fund is subject to Luxembourg subscription duty ("taxe d'abonnement") at the rate of 0.05% per annum of its Net Assets, such tax being payable quarterly on the basis of the Total Net Assets of the Fund at the end of the relevant quarter.

Pursuant to the Law of December 17th, 2010 as amended, the net assets invested in other investment companies already subject to Luxembourg subscription duty are exempt from this tax.

Note 5 - Capital

At an Extraordinary General Meeting held on May 9th, 2016 shareholders approved an amendment of article 5.1 of the Articles to reflect the successive capital reductions resulting from the tender offers and capital increases resulting from the exercise of their subscription rights by warrant holders with respect to the subscription dates arisen on March 30th, 2012, September 28th, 2012, March 28th, 2013, September 30th, 2013 and March 30th, 2014 so that article 5.1 of the Articles shall now read as follows:

"The Corporation has an issued capital of ten million one hundred thirty-five thousand six hundred seventy-four United States Dollars and forty cents (U.S. $10,135,674.40) consisting of fifty million six hundred seventy-eight thousand three hundred and seventy-two (50,678,372) shares of a nominal value of twenty United States cents (U.S. $0.20) each".

On September 29th, 2016 the Fund repurchased for cancellation a total of 4,042,602 ordinary shares at a tender price of 322.1776 pence per share.

As at September 30th, 2016 the Fund's issued share capital at the year-end was 46,635,770 Ordinary Shares, of which 36,383,493 Ordinary Shares have voting rights and 10,252,277 Ordinary Shares were held in Treasury without voting rights.

Note 6 - Legal Reserve

In accordance with Luxembourg requirements, at least 5% of the annual net profit must be transferred to a legal reserve.

This requirement is satisfied when the reserve is equal to 10% of issued share capital.

The legal reserve is not available for distribution.

Note 7 - Professional Fees

For year ended March 30th, 2016, the professional fees of US$ 91,875 were incurred principally due to the following:

• legal fees paid to Stephenson Harwood LLP, and Elvinger Hoss and Prussen;

• investor advisory paid to Edison Investment Research;

• retainer fees paid to Stockdale Securities; and

• audit fees paid to Deloitte Société à responsabilité limitée.

Note 8 - Custodian Fees

The Custodian Bank (State Street Bank Luxembourg S.C.A.) receives, under the terms of the Custodian Agreement, fees for its services at rates to be agreed from time to time between the Fund and the Custodian Bank in accordance with Luxembourg practice.

Note 9 - Directors' Fees and Expenses

Each of the Directors is paid a fee for their services at such a rate as the Board had determined provided that the aggregateof such fees shall not exceed US$ 500,000 per annum (pursuant to the resolution of the Annual General Meeting held on August 18th, 2015) or such higher amount as may from time to time be determined by the Shareholders in General Meeting.

The Directors may also be paid all reasonable travelling, hotel and other expenses properly incurred by them in the course of their duties relating to the Fund and relate primarily to the Board meeting held in Europe and United States.

The aggregate fees (including 'Administration des Contributions Directes') paid to Directors of the Fund amounted to US$ 117,032. The aggregate expense reimbursement to Directors of the Fund amounted to US$ 20,430. The exchange rate that has been applied for the conversion was the prevailing spot exchange at the time when the fees or expenses were paid to Directors.

Note 10 - Company Secretarial Fees and Expenses

For the period ended September 30th, 2016, the Company Secretarial fees and expenses of US$ 84,792 include charges related to the maintenance of the Fund's website, printing fees and the administration of the Fund's Custody Share Register.

Note 11 - Commitments

As of the date of the report, the Fund was not engaged in any forward exchange contracts or currency options.

Note 12 - Securities Lending

As of the date of the report, the Fund had no securities lending facility in place.

Note 13 - Short Positions

During the six month period ended September 30th, 2016, short sales of exchange traded funds were executed and the market value of the short sales of exchange traded funds at September 30th, 2016 amounting to US$ 15,924,964. The Fund has fully collateralised with the Broker these short positions through a cash retention of US$ 17,220,675 at September 30th, 2016.

Note 14 - Beneficial Interests of the Directors and Related Parties in the Share Capital

As of the date of the report, the beneficial interests of the Directors and related parties in the Share capital of the Fund are the following:

Note 15 - Substantial Shareholdings

As of the date of the report, the Board had been informed of the following interests in the Shares of the Fund:

Notifications received prior to the Tender Offer of September 29th, 2016

1 Percentage based on voting rights of 40,467,095.

2 Percentage based on voting rights of 50,678,372 (including 10,252,277 Shares held in Treasury).

Notifications received following the Tender Offer of September 29th, 2016

1 Percentage based on voting rights of 36,383,493.

2 Percentage based on voting rights of 46,635,770 (including 10,252,277 Shares held in Treasury).

All issued Shares of the Fund are on deposit with a registered clearing house and, accordingly, with the exception of those Shareholdings of which the Board has been notified, the Board is not in a position to state the exact size of any Shareholdings in the Fund. In light of the shareholder notifications referred to above the Board believes that the number of shares in public hands is currently lower than the 25% requirement set out in the Financial Conduct Authority's Listing Rules. The Fund has notified the Financial Conduct Authority of this position and is working with the Fund's advisers to increase the shares in public hands percentage to above 25%.

Note 16 - Changes in the Investment Portfolio

The changes in the investment portfolio during the period of the report are available at the registered office of the Fund without any charge.

Note 17 - Ongoing Charges

For the period ended September 30th, 2016 the Ongoing Charges were calculated using the following formula:

Annualised Ongoing Charges / Average net assets undiluted x 100 = Ongoing Charges % where:

• the annualised ongoing charges contain the management fees, professional fees, directors' fees and expenses, depositary fees, Company Secretarial fees and expenses, central administration costs and other expenses (printing, postage, annual fees); and

• the average net assets undiluted represent the arithmetic mean of the total net assets over the period; and

• taxe d'abonnement and interest paid are not included in the ongoing charges.

Ongoing Charges 1.41%

Note 18 - Line of Credit Advanced

The Fund has an unsecured US$ 25 million Line of Credit Agreement (the "Agreement") with Citibank, N.A. Interest on borrowings is payable at the Federal Funds rate plus 1.25%, on an annualised basis. Under the Agreement, the Fund has also agreed to pay a 0.10% per annum commitment fee.

As of September 30th, 2016, the Fund had no borrowings under the Agreement.

Note 19 - Other Expenses

Other Expenses include printing fees, association fees, exchange fees, Directors' and Officers' insurance, website costs and other miscellaneous expenses.

Note 20 - Dividends on Ordinary Shares

Dividends declared and paid in the period:

On June 28th, 2016, the Board reviewed the dividend calculation and confirmed that the Fund had adequate resources to pay the proposed final dividend of 5.4 pence per share (excluding the treasury shares). The final dividend for the financial year to March 31st, 2016 of 5.4 pence was paid on September 16th, 2016 to shareholders who appeared on the register on August 19th, 2016. The Board has proposed an interim dividend, in respect of 2016/2017, of 5.1p per share which is payable on January 16th, 2017, to shareholders who appear on the register on December 16th, 2016.

Note 21 - Subsequent Events

There were no disclosable subsequent events.

National Storage Mechanism

A copy of the Half Yearly Report will be submitted shortly to the National Storage Mechanism ("NSM") and will be available for inspection at the NSM, which is situated at: www.morningstar.co.uk/uk/NSM.

ENDS

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on this announcement (or any other website) is incorporated into, or forms part of, this announcement.