LGI: A Double-Digit Yield From Global Equity Exposure

2025-03-15 03:34:33 ET

Summary

• Lazard Global Total Return and Income Fund offers a high dividend yield of 11.3%, making it attractive for income-focused investors, despite limited price growth since inception.
• The fund's strategy includes global equities, emerging market currencies, and leverage, with significant exposure to tech, industrials, and financials sectors.
• LGI trades at a discount to NAV, but its reliance on net realized gains makes it vulnerable during market downturns and interest rate hikes.
• Ideal for income-seeking investors bullish on tech, LGI's variable payouts align with market momentum, though net investment income needs improvement for resilience.

Overview

Lazard Global Total Return and Income Fund ( LGI ) operates as a closed end fund that aims to generate attractive total returns through its blended portfolio of global equities and income-oriented investments. The fund has a public inception dating back to 2004, which means we have over two decades worth of performance data to reference. LGI is unique because it puts an emphasis on income but still exposes investors to a wide range of sectors from its large-cap equity holdings. This allows the fund to partake in bullish market momentum, while simultaneously being more resilient during market declines by delivering consistent income....

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