7 Nov 2018 15:01
Lazard World Trust Fund (previously known as 'The World Trust Fund')
Fact Sheet - 28th September 2018
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
Investment Objective
At the Fund's AGM on September 20th 2018, the resolution for continuation was not passed, it is the Board's intention to consult with shareholders prior to formulating proposals to be put to all shareholders in accordance with the articles of incorporation.
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 Countries World (ex US) Index, although Lazard Asset Management LLC (the 'Manager') seeks to achieve the highest possible risk-adjusted returns. The allocation of the Fund's assets will normally diverge substantially from the Index.
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.
The new Dividend Policy put in place on July 30th 2018 is scheduled to be paying equal dividends of 5.835p per share in August 2018, November 2018, February 2019 and May 2019
Fund Data
Net Asset Value | £3.859 |
Share Price | £3.63 |
Discount | -5.9% |
Total Assets | £123.8m |
Gearing | Nil |
Yield | 6.4% |
Source: State Street Bank
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 approximately US$294 billion in assets under management, it has offices located throughout the world in Bahrain, Boston, Frankfurt, Hong Kong, London, Madrid, Milan, Montreal, New York, San Francisco, Seoul, Sydney, Tokyo, Toronto, and Zurich.
Lazard Asset Management LLC was appointed as Manager of Lazard World Trust Fund at the inception of the Fund, 1 July 1991.
Top Holdings
Top 10 holdings as at September 28th, 2018 | Weight % | Discount % |
Fidelity China Special Situations | 6.2 | -12.1 |
JPMorgan Japan Smaller Companies | 6.0 | -8.7 |
Investor AB | 5.8 | -24.9 |
VinaCapital Vietnam Opportunity | 5.8 | -18.8 |
Naspers Ltd | 5.6 | -34.9 |
JPMorgan Emerging Markets | 5.4 | -11.8 |
JPMorgan Japanese | 5.3 | -12.5 |
Fondul Proprietatea | 5.0 | -31.7 |
Morgan Stanley China A Share | 5.0 | -14.8 |
Wendel | 4.3 | -25.8 |
Net Regional Exposure
Region | % |
Asia (ex-Japan) | 38.7 |
North America | 9.8 |
Japan | 14.4 |
Europe (ex-UK) | 21.9 |
United Kingdom | 8.4 |
Latin America, Africa & Middle East | 3.4 |
Other | 3.3 |
Source: Lazard Asset Management
Performance as of September 28th, 2018
Performance |
MTD |
YTD |
1-Year |
3-Year |
5-Year |
10-Year | Annualized since inception** |
Lazard World Trust Fund Price * (£) | -2.4% | -1.9% | 3.8% | 20.0% | 13.1% | 9.6% | 7.3% |
Lazard World Trust Fund NAV (£) | 0.9% | -1.2% | 4.0% | 16.5% | 11.8% | 9.7% | 7.7% |
MSCI AC World Ex USA | 0.5% | 0.5% | 5.1% | 15.8% | 8.8% | 8.6% | N/A |
Source: Lazard Asset Management/MSCI
* As at 1 November 2009 the currency in which the shares of the Fund are traded changed from US dollars (US$) to UK 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 1991
Manager's Comment
Global equity market indices inched up in September. The United Kingdom, one of the weakest markets so far in 2018, rose during the month despite the political machinations surrounding Brexit. Driven by large technology stocks, US stocks also gained during the month, overcoming an additional interest rate hike by the US Federal Reserve to 2.25%. President Donald Trump followed up on his threat of tariffs in order to protect domestic industries and reduce the US trade deficit. Despite ongoing monetary stimulus, European markets continued to lag, driven primarily by escalating trade and political concerns, as well as higher investor risk aversion. Italy's populist coalition government published a budget raising the public deficit target to around 2.40% of GDP for the next three years, possibly threatening European cohesion. Driving the Funds returns higher were investments in First Pacific (+10.1%) , JPMorgan Japan Smaller Companies Trust (+4.2%) and Softbank Group (+8.6%) while detracting from returns were investments in Fidelity China Special Situations (-3.8%) and Naspers (-3.4%)
The Lazard World Trust Fund price, as traded on the London Stock Exchange, is currently at a discount of -5.9% to the Fund's net asset value per share. The Fund's underlying investments were priced at an average discount of -25.0% to their net asset value. Adding the two discounts together, the Fund is currently trading at an effective discount of -29.5%, which implies that every pound invested in the Fund buys £1.42 worth of assets.
Long Portfolio Composition
Closed-Ended Investment Companies | 26.3% |
Investment Trusts | 48.7% |
Corporate Equities | 24.9% |
Source: Lazard Asset Management
Portfolio Exposure
Long | 99.9% |
Short | - 0.0% |
Source: Lazard Asset Management
Lazard World Trust Fund Annual NAV Performance (%)
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | |
Lazard World Trust Fund (Fully-Diluted NAV) (£)* | 20.22 | 17.75 | 6.64 | 10.08 | 16.67 | 14.15 | -12.18 | 20.74 | 31.95 | -47.021 | 5.79 | 5.39 | 43.91 | 17.08 |
MSCI AC World Ex USA Index | 14.0 | 24.64 | -0.2 | 2.11 | 13.15 | 11.7 | -13.07 | 14.65 | 25.94 | -24.58 | 14.69 | 11.1 | 30.42 | 12.74 |
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.
Company Information as at September 28th, 2018
46,635,770 Ordinary shares in issue (including 14,542,277 Treasury shares) = Luxembourg denominator | |
32,093,493 Ordinary shares (excluding 14,542,277 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: | Link Company Matters Telephone: +44 207 954 9599
|
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
|
Company Broker: | Cenkos Securities plc Contact: Andrew Worne Telephone: +44 (20) 7397 1912 |
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 UK 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 (£) 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