Lazard Global Total Return and Income Fund: A Decent but Imperfect Way to Invest in Foreign Markets

The Lazard Global Total Return and Income Fund (NYSE:LGI) offers investors exposure to global equities with a high level of income. It is a closed-end fund that provides a decent but imperfect way to play the strength in foreign markets. The fund invests in a diversified portfolio of global equities and provides a high level of income through dividends and interest. However, investors should be aware that the fund is not perfect and should be carefully evaluated before investment.

The Lazard Global Total Return and Income Fund (NYSE:LGI) is a closed-end fund designed to provide investors with exposure to global equities, emphasizing income generation. This fund, managed by Lazard Asset Management (LAM), offers a diversified portfolio of approximately 60 to 80 US and non-US equity securities, including American Depository Receipts, with a focus on companies with market capitalizations greater than $2 billion. Additionally, the fund invests in emerging market currencies and debt obligations denominated in emerging market currencies.

On May 22, 2025, the fund declared a monthly distribution of $0.14646 per share, payable on June 24, 2025, to shareholders of record on June 10, 2025. This distribution is a combination of net investment income, net realized capital gains, and return of capital, with the latter accounting for 16% of the total distribution [1]. The fund estimates that it has distributed more than its net investment income and net realized capital gains, indicating that a portion of the distribution may be return of capital. It is essential to note that a return of capital does not necessarily reflect the fund's investment performance and should not be confused with "yield" or "income."

The fund's investment objective is to achieve total return, consisting of capital appreciation and current income. As of April 30, 2025, the fund's average annual total return from inception through April 30, 2025, was 7.13%, while the average annual total return for the 5-year period ending on April 30, 2025, was 10.42%. The annualized current distribution rate expressed as a percentage of NAV as of April 30, 2025, was 10.47%. However, the cumulative total return (in relation to NAV) for the fiscal year through April 30, 2025, was -1.25%, and the cumulative fiscal year distributions as a percentage of NAV as of April 30, 2025, were 2.49% [1].

Investors should be cautious when evaluating the fund, as it is not perfect and may not be suitable for all investment portfolios. While the fund offers exposure to global equities and income generation, it is essential to consider the fund's investment strategy, fees, and risks before making an investment decision. It is recommended that investors consult with a financial advisor to determine if the Lazard Global Total Return and Income Fund aligns with their investment objectives and risk tolerance.

References:
[1] Lazard Global Total Return and Income Fund, Inc. (2025). Retrieved from https://www.nasdaq.com/press-release/lazard-global-total-return-and-income-fund-declares-monthly-distribution-and-38