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Investors searching for global diversification and high income opportunities may find interest in the Lazard Global Total Return and Income Fund Inc. Based on recent projections from the Congressional Budget Office, diversifying across nations and currencies has become crucial due to anticipated fiscal deficits that could weaken the U.S. dollar. Central banks worldwide have taken notice, with record gold purchases in 2022 and 2023 indicating a shift in investment strategies.

The Lazard Global Total Return and Income Fund offers a 7.56% yield, outperforming major American indices such as the S&P 500. However, compared to its peers, the fund falls short in yield, impacting its appeal to income-focused investors. Despite its lower yield, the fund’s global focus allows it to capitalize on investment opportunities worldwide, offering a diverse portfolio beyond a single country.

Analyzing the fund’s performance since March 2024 reveals a 2.15% gain, underperforming the S&P 500 and MSCI World Index, albeit marginally. With a focus on total return through capital appreciation and income, the fund targets a portfolio of 60-80 US and non-US equity securities, including emerging markets. Questions about asset allocation, currency exposure, and industry sector diversification remain, highlighting potential considerations for investors seeking international exposure.

As investments in foreign assets continue to shift, the fund has adjusted its largest positions, emphasizing a move from US to foreign companies. However, American mega-cap technology companies’ strong performance has impacted this shift, influencing the fund’s global exposure. Despite recent changes, the fund’s turnover remains comparatively lower than its peers, potentially minimizing trading costs and improving investment returns.

Implementing leverage to enhance total returns, the fund’s current leverage ratio of 31.40% exceeds that of its peers, signaling potential risk levels despite remaining below a critical threshold. Through monthly distributions and recent increases, the fund aims to provide investors with a consistent income stream, although past distribution fluctuations may deter some risk-averse investors.

Trading at a 9.41% discount to net asset value, the Lazard Global Total Return and Income Fund presents a favorable buying opportunity for investors seeking exposure beyond the US market. With considerations for income yield, leverage, and asset allocation, investors should weigh the fund’s potential against its peers before making investment decisions. Overall, the fund’s discounted valuation, global focus, and consistent distributions make it a promising option for those with a diversified investment strategy.