Lazard Global Total Return and Income Fund Declares Monthly Distribution and Issues Estimated Sources of the Distribution Announced in June
MWN-AI** Summary
Lazard Global Total Return and Income Fund, Inc. (NYSE: LGI) recently announced its monthly distribution of $0.14646 per share on outstanding common stock, aligning with its Managed Distribution Policy approved by the Board of Directors. This distribution is set to be payable on August 22, 2025, to shareholders on record as of August 11, 2025, coinciding with the ex-dividend date.
The announcement also detailed the sources of this distribution, comprising various components that offer insights into the Fund's financial health. The breakdown includes net investment income contributing approximately $0.04055 (28%), net realized short-term capital gains of $0.00375 (3%), net realized long-term capital gains at $0.04170 (28%), and a significant return of capital aspect totaling $0.06046 (41%). Collectively, these make up the total distribution, with $1.02522 representing cumulative fiscal year distributions to date as of June 30, 2025.
Lazard has emphasized that a portion of the distributions may represent a return of capital, which does not necessarily indicate the Fund's investment performance and should not be mistaken for income. As of June 30, 2025, the average annual total return relative to net asset value (NAV) stands at 10.76%, with an annualized distribution rate of 9.84% as a percentage of NAV.
With approximately $248.4 billion in client assets under management, Lazard Asset Management (LAM) continues to focus on total return objectives through a diversified portfolio that includes U.S. and international equity securities, as well as emerging market debts. For those needing further information, LAM provides detailed data on its website, ensuring stakeholders remain informed about the Fund's investment performance and distribution policies.
MWN-AI** Analysis
Lazard Global Total Return and Income Fund (NYSE: LGI) has recently declared a monthly distribution of $0.14646 per share, following its Managed Distribution Policy. This distribution is indicative of the fund’s commitment to providing consistent income to shareholders. However, investors should conduct thorough analysis before making investment decisions based on this announcement.
The sources for the current distribution reveal a blend of income components: 28% stemming from net investment income, 31% from net realized capital gains (both short- and long-term), and a significant 41% from return of capital. This heavy reliance on return of capital is a crucial point for consideration: while it can provide immediate cash flow, it indicates that the fund is returning a portion of the shareholder's original investment rather than purely earnings. This distinction is vital, as it does not reflect the underlying investment performance and could manifest as a red flag for some investors.
Additionally, the fund’s average annual total return over five years stands at 10.76%, which is an attractive figure relative to many comparable funds, while the annualized distribution rate at 9.84% shows a strong yield in relation to NAV. However, the cumulative total return (NAV) for the fiscal year is noted at 6.82%, reflecting less robust performance compared to prior years.
As such, investors should weigh these factors against their overall investment strategy and risk tolerance. Monitoring the ongoing performance metrics, particularly how the fund navigates market fluctuations, will be critical for those considering an investment in LGI. Given the mixed indicators, potential investors should approach with caution, focusing on long-term stability and evaluating the portfolio's asset allocation and geographical exposure for risk diversification.
**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 August 22, 2025, to shareholders of record on August 11, 2025. The ex-dividend date is August 11, 2025.
The Fund will pay a previously declared distribution today, July 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 | $0.04055 | 28% | $0.10426 | 10% |
Net Realized Short-Term Capital Gains | $0.00375 | 3% | $0.02625 | 3% |
Net Realized Long-Term Capital Gains | $0.04170 | 28% | $0.29188 | 28% |
Return of Capital | $0.06046 | 41% | $0.60283 | 59% |
Total | $0.14646 | 100% | $1.02522 | 100% |
Average annual total return (in relation to NAV) for the 5-year period ending on June 30, 2025 | 10.76% |
Annualized current distribution rate expressed as a percentage of NAV as of June 30, 2025 | 9.84% |
Cumulative total return (in relation to NAV) for the fiscal year through June 30, 2025 | 6.82% |
Cumulative fiscal year distributions as a percentage of NAV as of June 30, 2025 | 4.92% |
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 June 30, 2025, 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 June 30, 2025, LAM and affiliated asset management companies in the Lazard Group managed $248.4 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/20250722304656/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**
What factors led to the Lazard Global Total Return and Income Fund LGI's decision to confirm a monthly distribution of $0.14646 per share for August 2025, and how does this align with its Managed Distribution Policy?
How does the return of capital in the Lazard Global Total Return and Income Fund LGI's distribution affect shareholders' perceptions of yield and income versus actual investment performance?
Could you provide insights into the portfolio’s performance metrics, such as the average annual total return for the Lazard Global Total Return and Income Fund LGI over the past five years, and how they could impact future distributions?
What specific strategies does Lazard Global Total Return and Income Fund LGI employ to achieve its investment objective of total return, particularly in emerging markets and currency investments?
**MWN-AI FAQ is based on asking OpenAI questions about Lazard Global Total Return and Income Fund (NYSE: LGI).
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