WTR.L Regulatory News (WTR)

Lazard World Trust Fund

Unaudited Half-Yearly Report

September 30th, 2018

Financial Highlights for the six months ended September 30th, 2018

The dividend policy is to pay 6% of the Net Asset Value at the start of each financial year, paid in four equal instalments.

Note: The rate of exchange used to calculate the figures that appear above is the rate of exchange as at September 30th, 2018: US$ 1.3034 per £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

• On September 20th, 2018, shareholders voted against the continuation of Lazard World Trust Fund (the 'Fund'). Whilst the going concern basis has been applied throughout these half-yearly accounts, the basis of accounting will change if and when shareholders vote in favour of a managed wind-up of the Fund at an Extraordinary General Meeting yet to be held for that purpose as disclosed in the Stock Exchange announcement released on November 8th, 2018.

• On September 20th, 2018 shareholders approved the Fund's dividend policy of 6% of the Net Asset Value ('NAV') calculated at the start of each financial year, which for the financial year to March 31st, 2018 amounted to 23.34 pence per share, payable in four equal instalments over the course of the year.

• The first Interim Dividend of 5.835 pence per share was paid on September 7th, 2018. The second Interim Dividend of 5.835 pence per share was paid on December 17th, 2018 to shareholders who appear on the register on November 16th, 2018, with an ex-dividend date of November 15th, 2018.

• 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.

• The NAV per Share, as defined above, 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 available at the Registered Office of the Fund and are posted to each registered Shareholder.

• 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 on the Luxembourg

Stock Exchange.

Regulatory Disclosure

Related Party Transactions

During the six months to September 30th, 2018 no new transactions with related parties were undertaken. Full details of the Fund's existing related party transactions can be found in Note 9 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; hedging risk, which may increase the risk of significantly larger losses on short positions than long positions; discount volatility - the Fund's share price may fall disproportionately to the Fund's NAV; 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 page 15 under the heading 'Principal Risks and Uncertainties' in the Annual Report including audited financial statements for the year ended March 31st, 2018.

Directors' Responsibility Statement

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

• the unaudited financial half-yearly report, which has 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, 2018 and for the financial period then ended;

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

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

• the unaudited half-yearly report includes 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 including audited financial statements that could have a material effect on the financial position or performance of the Fund.

On behalf of the Board

Philip R. McLoughlin

Chairman

December 21st, 2018

Investment Objective

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 (USA) Index (the 'Index'), although Lazard Asset Management LLC (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.

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 actively seeks 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 and holding companies and comparable quoted companies that typically trade at a discount to their intrinsic value.

Dividend Policy

The Fund pays dividends four times a year that in aggregate amounts to a total annual dividend equivalent to 6% of the Net Asset Value at the start of each financial year. For the financial year ended March 31st, 2019, this will amount to a total dividend payment of 23.34 pence per share.

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 of Directors has authorised the Manager to use gearing of up to 15% of the Fund's Net Asset Value. The Board of Directors 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 1st, 2018 to September 30th, 2018

Market Review

Non-US equity markets fluctuated as a result of trade and political concerns during the third quarter and fell in absolute terms, with emerging markets underperforming their developed peers. The gap between US and non-US equity performance continues to widen. The market is concerned with a number of recent geopolitical developments, including the potential for new global trade barriers, political uncertainty and upheaval and currency fluctuations, all of which are reflected in current equity market share price volatility. One risk that has particularly continued to unsettle global investors in the third quarter centered on global trade. In mid-September, the Trump administration imposed 10% duties on US$ 200 billion worth of Chinese imports, extending tariffs to more than half of all Chinese imports (representing more than 7,000 products from finished automobiles to basic commodities) into the United States. China responded by introducing tariffs on an additional US$ 60 billion of American imports.

Fund Performance Review (all figures in US dollars)

For the half year period ended September 30th, 2018, the Fund's net asset value (NAV) per share fell 4.9%, compared with a loss of 1.9% for the MSCI All World ex-US Index. The Fund's share price, as traded on the London Stock Exchange, decreased by 3.2% over the six-month period.

Investments in Asia, and particularly in China faired poorly over the period and Emerging Asia investments, which represented nearly 32% of our assets, the Fund saw on average a decline of 8%. Similarly tensions in Turkey resulted in us, the Manager, disposing of the Fund's position in Sabanci (-33%), which avoided further falls.

Discounts of many of the Fund's holdings widened, which provided further headwind for performance. The best performers in the portfolio were Softbank (+35.3%), Macau Property Opportunities (+16.8%), HarbourVest Global Private Equity (16.8%) and JPEL (+11.1%).

Macau and JPEL returned cash to investors (valued at NAV) which helped narrow the discount on both investments.

Historical Performance (*Annualised)

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.

Fund Data/Information

The Portfolio

The Fund has a concentrated portfolio of 30 (long) holdings, with the top 10 holdings exceeding 54% of assets.

Top Five Contributors to Returns (NAV)

SoftBank performed strongly in Q3 2018. The company is seeking to list its domestic Japanese wireless business division, SoftBank Mobile, which could be the largest listing ever at a US$ 30 billion-IPO. HarbourVest Global Private Equity continued to generate strong NAV returns and experienced discount compression leading to strong performance. Investor AB saw steady growth in their unquoted holdings through their Patricia Industries vehicle. It also experienced and strong results from listed investments, including Macau Property Opportunities Fund, which has as its objective to divest 20% of its NAV during the period as it continues to deliver upon its objective to divest assets, maximize returns and then return proceeds to investors. This provided a significant uplift on our investment. India Fund announced its adoption of a managed distribution policy which resulted in the price performing well in the third quarter of 2018, allowing us to exit, realising a good gain.

Top Five Detractors from Returns (NAV)

The continued tensions in US-China trade saw many of our holdings exposed to the Chinese market suffer both in NAV and share price terms over the period. Fidelity China Special Situations which maintains considerable investments in the small/mid-cap market and technology space was a considerable underperformer. China's A share market underperformed the broader China equity market and thus the Fund's holding in Morgan Stanley China A Share hurt returns over the period. Naspers, which owns approximately 1/3 of Tech giant Tencent, fell mainly as a reflection of the 20% decline in the shares of Tencent. That said, shares of Naspers outperformed those of Tencent and thus the discount of Naspers narrowed over the period. China Merchants China Direct Investments delivered strong NAV results relative to the China equity market but it was sentiment that weighed on its shares and caused the discount to widen more than 700 basis points which accounted for nearly half of the stock's performance over the period. GP Investments was negatively impacted by declines in the Brazilian Real as well as declines in its listed and unlisted holdings.

Top Ten Country Weights as of September 28th, 2018

Portfolio Hedging

Although the Fund is able to hedge (details are laid out in the Investment Policy section), hedging was not used during

the period.

Corporate Governance Initiatives and Restructuring

The Fund holds investments trading at substantial discounts. The management team continues to interact with the boards and managements of portfolio companies to encourage corporate governance initiatives and restructuring measures designed to unlock value. The following events occurred during the period.

•Tender offers: Altaba (26% of shares could be tendered for a mixture of cash and shares in its principal holding,

Alibaba, at levels above the then current market price); Atlantis Japan (5% tender at 96% of NAV).

• Significant distributions to shareholders from Macau Property Opportunities with a 20% capital distribution

following a significant disposal of a key asset.

• Discount control mechanisms through enhanced dividend distributions were put in place by the boards of both

JPMorgan Japan Smaller and India Fund

Discounts

The Fund's discount to NAV narrowed by 170 basis points to end the period at 5.9%. It traded at an average discount of 3.9%, ranging from a discount of 8.1% to 0.0%.

The Fund's share price, as traded on the London Stock Exchange, trades at a discount of 5.9% to the Fund's NAV per share. The Fund's "internal" discount, which looks at the average discount of the portfolio underlying investments, were priced at an average discount of 25.0% to their own NAV. Adding the two discounts together, the Fund is trading at an effective "double" discount of 29.5%, which implies that every dollar invested in the Fund buys $1.42 worth of assets.

Outlook

The outlook for the Fund is now in question following the failed continuation vote at the 2018 Annual

General Meeting in September.

An Extraordinary General Meeting ('EGM') is due to be held, as required by Luxembourg regulations, in order to change the Fund's investment policy to permit the disposal of the Fund's assets. We will continue to manage the Fund according to the stated objectives until further notice from the Board of Directors based on the outcome of the EGM. We believe there is still great value available to investors in select closed end funds and holding companies, especially those focused on the emerging markets. Discounts on such investments continue to trade at historically attractive levels, well in excess of 20%. Valuations of emerging market equities versus their developed peers, now trade 28.9% cheaper which is a full standard deviation from the historical mean. Combining compelling discounts with attractive underlying valuations has been a hallmark of the Fund since inception in 1991, and investors should note that such opportunities still persist.

We continue to believe specialized closed end funds and holding companies remain an ideal way to invest in global equities. In particular, the emerging markets present a very attractive long term opportunity as discounts are as compelling as they are today. The opportunity to generate alpha or risk adjusted returns, by investing in closed end funds and holding companies continues to be substantial.

Kun Deng, CFA

Lazard Asset Management LLC

Manager

December 21st, 2018

Statement of Net Assets (in US$)

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

Notes to the Financial Statements September 30th, 2018

Note 1 - General

Lazard World Trust Fund (the "Fund"), previously known as the 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 World 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"). At an Extraordinary General Meeting held on September 20th, 2016 the Fund adopted a new benchmark, MSCI All Countries ("AC") (ex US) Index against which it measures its performance. However 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. 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 28th, 2018 (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 have adopted 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. As of September 30th, 2018, all securities were valued at unadjusted quoted prices.

(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;

(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) These statements are presented on the going concern basis.

6) 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 28th, 2018:

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, 2018, the Fund incurred transaction fees related to purchase and sale of transferable securities for US$ 29,205.87.

The transaction costs include broker fees, settlement fees, taxes and other charges.

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.

At an Extraordinary General Meeting held on September 20th, 2016 the Fund adopted a new Amended and Restated Investment Management Agreement which was amended to reflect that the New Benchmark Index (MSCI All Country World Index (ex US)). The New Benchmark Index shall be the reference benchmark for calculating performance fees from April 1st, 2016.

The objective of the performance fee arrangements in the management agreement is to provide an incentive to the Manager by rewarding outperformance over the medium to longer term. The basis of the performance fee is therefore a rolling two year period over which the growth in the Net Asset Value of the Company must exceed the increase in the Index (the "Hurdle").

For the purposes of this amended performance-fee calculation, "Hurdle" means: (i) in respect of the Performance Period ending March 31st, 2018, the percentage increase in the Current Benchmark Index in respect of the 12 months ended March 31st, 2017 plus the percentage increase in the New Benchmark Index in respect of the 12 months ended March 31st, 2018 (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, 2018 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.

During the period ended September 30th, 2018, the Fund made the following buy-backs for treasury:

As at September 30th, 2018 the Fund's issued share capital at the period-end was 46,635,770 Ordinary Shares, of which 32,093,493 Ordinary Shares have voting rights and 14,542,277 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 the period ended September 30th, 2018, the professional fees of US$ 199,821 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;

• corporate broking fees to Cenkos Securities Plc;

• audit fees paid to Deloitte Audit Société à responsabilité limitée; and

• non-audit fees paid to Deloitte Audit Société à responsabilité limitée.

Note 8 - Depositary Fees

The Depositary Bank (State Street Bank Luxembourg S.C.A.) receives, under the terms of the Depositary Agreement, fees for its services at rates to be agreed from time to time between the Fund and the Depositary 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 aggregate of such fees shall not exceed US$ 500,000 per annum (pursuant to the resolution of the Annual General Meeting held on September 20th, 2018) 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 meetings held in Europe and United States.

The fees paid after tax to each Director for the period ended September 30th, 2018 were as follows:

The aggregate fees (including 'Administration des Contributions Directes') paid to Directors of the Fund amounted to US$ 115,941. The aggregate expense reimbursement to Directors of the Fund amounted to US$ 13,905. The fees relate to fees incurred as a result of the Board's attendance at each Board meeting. 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, 2018, the Company Secretarial fees and expenses of US$ 72,305 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 foreign 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

As of the closing date, the Fund had no open short positions.

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:

1 Percentage based on voting rights of 32,093,493.

2 Percentage based on voting rights of 46,635,770 (including 14,542,277 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.

Note 16 - Ongoing Charges

For the year ended March 31st, 2018 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 1.35%

Note 17 - 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, 2018, the Fund had no borrowings under the Agreement.

Note 18 - Other Expenses

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

Note 19 - Dividends on Ordinary Shares

Dividends declared and paid in the period:

On April 27th, 2018 the Board announced that it would pay a second dividend of 6.4925 pence per share in respect of the year to March 31st, 2018, which was paid on June 8th, 2018 to shareholders who appeared on the register on May 11th, 2018 with an ex-dividend date of May 10th, 2018. The final dividend of 6.49 pence per share was paid on June 8th, 2018.

The first quarterly dividend of 5.835 pence per share was paid in respect of the year ended March 31st, 2019 on

September 7th, 2018 to Shareholders who appear on the register on August 10th, 2018, with an ex-dividend date of

August 9th, 2018.

Note 20 - Changes in the Investment Portfolio

For the period ended September 30th, 2018, the total movements occurred in the securities portfolio are the following:

In addition, the changes in the investment portfolio during the year are available at the registered office of the Fund without any charge.

Note 21 - Subsequent Events

There were no 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.