NTIOF - LGI: A Worthy Global Fund But Higher U.S. Exposure Than Some Peers

2024-07-01 15:45:08 ET

Summary

• Lazard Global Total Return and Income Fund Inc offers global diversification and high income, appealing to those seeking to reduce exposure to the US and US Dollar.
• The Fund's focus on global opportunities allows for better growth and investment opportunities worldwide.
• The Fund's high yield of 7.56% is attractive, but lower than peers. It also tends to vary with time.
• The fund's management appears to be trying to move money into foreign assets, but the strong performance of American mega-cap technology is making that hard.
• The fund appears to have fully covered its distribution for the first half of 2024, and it trades at a large discount to net asset value.

The Lazard Global Total Return and Income Fund Inc ( LGI ) is a closed-end fund, or CEF, that is designed to provide investors with both global diversification and a high level of income. The fact that this is a global fund will undoubtedly appeal to anyone who is seeking to reduce their exposure to the United States and especially the United States dollar.

Recent projections from the Congressional Budget Office reveal how important it is to diversify your portfolio across nations and currencies, as these projections point to considerable fiscal deficits going forward that seem almost certain to reduce the strength of the U.S. dollar compared to other currencies. Central banks all over the world have started to realize this, with central bank gold purchases setting a record in 2022 and almost matching that level in 2023....

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