29 Jul 2016 15:33
Lazard World Trust Fund
Interim Management Statement
for the quarter ended 30 June 2016
Lazard World Trust Fund (the "Fund") is publishing this Interim Management Statement in accordance with the Luxembourg law of 11 January 2008 on Transparency requirements (the "Transparency law").
This Interim Management Statement has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the Transparency law. It should not be relied upon by any other party or for any other purpose.
This Interim Management Statement relates to the period from 1 April 2016 to 30 June 2015 and contains information that covers this period and the period up to the date of publication of this Interim Management Statement.
The Fund aims to achieve long-term capital appreciation by investing in companies, in the main closed-end investment companies, whose shares trade at a discount to their underlying net asset value and are listed on international exchanges. For hedging purposes 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.
Highlights:
Over the 3 month period from 1 April 2016 to 30 June 2016:
· The Fund's diluted net asset value (NAV) fell -1.5% to $4.108 in US$ terms (base currency), compared with a rise of 1% in the MSCI All Countries World Index.
· The Fund's share price rose in Sterling terms by 9.7% to 270.25 pence.
· The discount to NAV (in Sterling) at the end of the period was -12.4%.
· The Fund's underlying holdings had an average weighted discount of -28.1%.
Long Term Performance:
1-Year | 3-Year** | 5-Year** | 10-Year** | |
Share Price £ | 3.0% | 9.8% | 7.3% | 2.6% |
Share Price US$* | -12.8% | 5.1% | 3.3% | -0.8% |
Net Asset Value £* | 3.9% | 9.1% | 7.4% | 3.2% |
Net Asset Value US$ | -11.7% | 4.6% | 3.5% | -0.1% |
MSCI All Countries World US$ | -3.7% | 6.0% | 5.4% | 4.3% |
MSCI AC World Ex USA | -10.2% | 1.2% | 0.1% | 1.9% |
The MSCI All Countries World index is shown solely for the purpose of performance comparison, and in no way reflects the composition of the portfolio.
*Converted using Foreign Exchange rate used by the administrator.
** Annualized.
Top Five Holdings (%): | 30/06/16 | 31/03/16 |
Naspers | 6.5% | 5.8% |
General American Investors | 5.5% | 5.5% |
Eurazeo | 5.5% | 5.9% |
JPMorgan European Smaller Companies | 4.7% | 5.2% |
JPMorgan Japanese | 4.6% | 4.3% |
Top 5 Regional Breakdown (%) | 30/06/15 | 31/03/16 |
North America | 20.3% | 22.4% |
Asia (ex-Japan) | 29.7% | 31.5% |
Europe (ex-UK) | 21.3% | 20.8% |
United Kingdom | 6.5% | 8.9% |
Japan | 10.2% | 9.7% |
30/06/15 | 31/03/16 | |
Long Exposure | 95.9% | 101.0% |
Short Exposure | 0% | 0% |
Net Exposure | 95.9% | 101.0% |
Top 10 Country Weightings (%)
| 30/06/2016 |
United States | 20 |
China | 13.4 |
Japan | 10.2 |
United Kingdom | 6.5 |
France | 4.4 |
Sweden | 4.0 |
Hong Kong | 3.6 |
Switzerland | 3.6 |
Philippines | 3.2 |
India | 3.1 |
Leverage:
As at 30 June 2016 the Fund had no leverage.
Material Transactions and Events:
On 15 April 2016 the Fund proposed to change its name from The World Trust Fund to Lazard World Trust Fund and this was approved by shareholders on 9 May 2016. Furthermore, on 29 June 2016, the Fund proposed three initiatives:
i. New dividend policy - to pay an aggregate dividend per share each financial year, subject to Luxembourg Law, amounting to 3.5 per cent. of the net asset value per share of the Fund at the start of each financial year. For the current year ending 31 March 2017, the Board proposes to pay aggregate dividends of 10.2p per share and in relation to the year ended 31 March 2016 the Board has proposed a final dividend of 5.4p per share.
ii. Proposed Change of Benchmark - subject to shareholder approval in General Meeting, the Fund proposes to change the current benchmark (the MSCI All Countries World Index) to the MSCI All Countries (ex US) Index.
iii. Proposed Tender Offer - subject to receiving the necessary approvals the Fund proposes to purchase, by way of tender offer, up to 10 per cent. of the Fund's issued share capital at a 2 per cent. discount to net asset value per share, less the costs and expenses of the tender offer.
Documentation in relation to the proposed change of benchmark and tender offer is being prepared and will be sent to shareholders following approval of the CSSF and the UKLA.