Lazard Global Total Return and Income Fund Declares Monthly Distribution and Issues Estimated Sources of the Distribution Announced in December
MWN-AI** Summary
Lazard Global Total Return and Income Fund, Inc. (NYSE: LGI) recently announced a monthly distribution of $0.14646 per share, aligned with its Managed Distribution Policy authorized by its Board of Directors. This distribution is slated for payment on February 21, 2025, to shareholders on record as of February 10, 2025, with the ex-dividend date also set for February 10, 2025.
On January 22, 2025, the Fund made a previously declared distribution, bringing attention to its sources for current distributions and cumulative amounts for the fiscal year to date. Notably, the current distribution will be comprised entirely of a return of capital, as the Fund reported no net investment income or realized capital gains - both short-term and long-term. This means that while shareholders will receive their distributions, these do not originate from income generated by the Fund's investments.
For the fiscal year so far, the Fund has cumulatively distributed $0.14646 per share, with the total reflecting a 100% return of capital. Investors should note that while the return of capital may not directly signify the Fund's investment performance, it represents a portion of the capital initially invested by shareholders being returned to them.
As of December 31, 2024, Lazard's Fund is geared toward achieving total returns through a balanced investment approach, including U.S. and non-U.S. equities, debt obligations, and investments in emerging markets. The Fund's investment manager, Lazard Asset Management, oversees a substantial portfolio, managing approximately $226.3 billion in client assets as of the same date. For more detailed financial performance metrics and information about the Fund, stakeholders are encouraged to consult Lazard’s website.
MWN-AI** Analysis
The Lazard Global Total Return and Income Fund (NYSE: LGI) has recently declared its monthly distribution of $0.14646 per share, scheduled for payment on February 21, 2025. A key observation is that this distribution is being sourced entirely from a return of capital, which raises critical considerations for investors regarding the sustainability and future performance of the Fund.
Historically, a return of capital can signal that the Fund is returning some of the principal investment back to shareholders rather than generating sustainable income through investment performance. Notably, for the fiscal year, all distributions have been attributed to return of capital, indicating that the Fund is currently not producing net investment income or net realized capital gains. This reliance on return of capital can result in potential risks as it does not reflect ongoing profitability or investment success.
From a performance perspective, the Fund reported a five-year annualized total return of 7.66% and a current distribution rate of 10.20% relative to its NAV as of December 31, 2024. While these figures are appealing, investors should exercise caution. The cumulative total return for the fiscal year was 6.51%, further emphasizing a disparity between total returns and distributions made, where 8.67% of cumulative fiscal year distributions were derived from NAV.
Given these dynamics, potential investors should closely evaluate their investment strategies. It may be prudent to approach LGI with caution, particularly for those seeking sustainable yield. Investors could consider diversifying their portfolios or looking for funds that demonstrate consistent net investment income generation. Always remember, while the current distribution rate appears attractive, understanding the underlying funding sources is crucial for making informed investment decisions.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Lazard Global Total Return and Income Fund, Inc. (the "Fund") (NYSE:LGI) is confirming today, pursuant to its Managed Distribution Policy, as previously authorized by its Board of Directors, a monthly distribution of $0.14646 per share on the Fund’s outstanding common stock. The distribution is payable on February 21, 2025 to shareholders of record on February 10, 2025. The ex-dividend date is February 10, 2025.
The Fund will pay a previously declared distribution today, January 22, 2025. The following table sets forth the estimated amounts of the current distribution and the cumulative distributions paid, including today’s distribution, from the following sources: net investment income, net realized capital gains (short-term and long-term), and return of capital. All amounts are expressed per share of common stock and are based on accounting principles generally accepted in the US, which may differ from federal income tax regulations.
Current Distribution | % of the Current Distribution | Total Cumulative Distributions for the Fiscal Year to Date | % of the Total Cumulative Distributions for the Fiscal Year to Date | |
Net Income | $0.00000 | 0% | $0.00000 | 0% |
Net Realized Short-Term Capital Gains | $0.00000 | 0% | $0.00000 | 0% |
Net Realized Long-Term Capital Gains | $0.00000 | 0% | $0.00000 | 0% |
Return of Capital | $0.14646 | 100% | $0.14646 | 100% |
Total | $0.14646 | 100% | $0.14646 | 100% |
| Average annual total return (in relation to NAV) for the 5-year period ending on December 31, 2024 | 7.66% |
| Annualized current distribution rate expressed as a percentage of NAV as of December 31, 2024 | 10.20% |
| Cumulative total return (in relation to NAV) for the fiscal year through December 31, 2024 | 6.51% |
| Cumulative fiscal year distributions as a percentage of NAV as of December 31, 2024 | 8.67% |
You should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's Managed Distribution Policy.
The Fund estimates that it has distributed more than its net investment income and net realized capital gains; therefore, a portion of your distribution may be return of capital. A return of capital may occur, for example, when some or all of the money that you invested in the Fund is paid back to you. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income".
The amounts and sources of distributions reported above are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund provides financial intermediary firms the information necessary to produce the Form 1099-DIV, and then the relevant financial intermediary firm will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes. If you have any questions, or need additional information, please call us at 1-800-823-6300.
Portfolio data as of December 31, 2024, including performance, asset allocation, top 10 holdings, sector weightings, regional exposure, and other Fund characteristics have been posted on Lazard Asset Management's ("LAM") website, www.LazardAssetManagement.com .
The Fund's investment objective is total return, consisting of capital appreciation and current income. The Fund's net assets are invested in a portfolio of approximately 60 to 80 US and non-US equity securities, including American Depository Receipts, generally of companies with market capitalizations greater than $2 billion, and may include investments in emerging markets. The Fund also invests in emerging market currencies (primarily by entry into forward currency contracts), or instruments whose value is derived from the performance of an underlying emerging market currency, and also may invest in debt obligations, including government, government agency and corporate obligations and structured notes denominated in emerging market currencies.
An indirect subsidiary of Lazard, Inc. (NYSE: LAZ), LAM, the Fund's investment manager, offers a range of equity, fixed-income, and alternative investment products worldwide. As of December 31, 2024, LAM and affiliated asset management companies in the Lazard Group managed $226.3 billion worth of client assets. For more information about LAM, please go to www.LazardAssetManagement.com . Follow LAM at @LazardAsset.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250122215385/en/
Media contact:
Aziz Nayani, +1 212 632 6042
aziz.nayani@lazard.com
Investor contact:
Ben Wulfsohn, +1 800 823 6300
ben.wulfsohn@lazard.com
FAQ**
How does the distribution policy of Lazard Global Total Return and Income Fund (LGI) impact its overall investment strategy and performance?
Can you explain the rationale behind the reliance on return of capital in the distribution process of Lazard Global Total Return and Income Fund (LGI)?
What factors contribute to the average annual total return of 7.66% for the Lazard Global Total Return and Income Fund (LGI) over the past five years?
How does Lazard Global Total Return and Income Fund (LGI) manage risks associated with investments in emerging markets and currencies?
**MWN-AI FAQ is based on asking OpenAI questions about Lazard Global Total Return and Income Fund (NYSE: LGI).
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