Lazard Global Investment Funds plc
Annual Report and Audited Financial Statements
For the financial year ended 31 March 2016
Contents
Directors’ Report............................................................................................................. 5
Investment Manager’s Reports..................................................................................... 10
Custodian’s Report....................................................................................................... 22
Depositary’s Report....................................................................................................... 23
Independent Auditors’ Report....................................................................................... 24
Statement of Comprehensive Income.......................................................................... 26
Statement of Financial Position.................................................................................... 29
Statement of Changes in Net Assets attributable to Redeemable
Participating Shareholders............................................................................................ 32
Notes to the Financial Statements................................................................................ 35
Portfolios of Investments.............................................................................................. 82
Statements of Major Changes in Investments (unaudited)......................................... 114
Appendix 1: UCITS V Remuneration Policy (unaudited)............................................. 124
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Directors and Other Information..................................................................................... 4
3
Directors and Other Information
Registered Office
Directors
6th Floor
2 Grand Canal Square
Dublin 2
Ireland
Michael Allen (British)**
Gavin Caldwell (Irish)*
John Donohoe (Irish)*/**
Andreas Huebner (German)
Daniel Morrissey (Irish)*/**
William Smith (British)
LAZARD GLOBAL INVESTMENT FUNDS PLC
Manager
4
Lazard Fund Managers (Ireland) Limited
6th Floor
2 Grand Canal Square
Dublin 2
Ireland
Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York
NY 10112-6300
USA
Custodian (until 17 March 2016) and Depositary
(from 18 March 2016)
* Independent Directors
** Members of the Audit Committee
All Directors are Non-Executive
Secretary
Wilton Secretarial Limited
6th Floor
2 Grand Canal Square
Dublin 2
Ireland
Independent Auditors
State Street Custodial Services (Ireland) Limited
78 Sir John Rogerson’s Quay
Dublin 2
Ireland
PricewaterhouseCoopers
Chartered Accountants and Registered Auditors
One Spencer Dock
North Wall Quay
Dublin 1
Ireland
Administrator, Registrar and Transfer Agent
Legal Advisers as to Irish Law
State Street Fund Services (Ireland) Limited
78 Sir John Rogerson’s Quay
Dublin 2
Ireland
William Fry
2 Grand Canal Square
Dublin 2
Ireland
Distributors
Legal Advisers as to English Law
Lazard Asset Management Limited
50 Stratton Street
London W1J 8LL
United Kingdom
MacFarlanes LLP
20 Cursitor Street
London EC4A 1LT
United Kingdom
Lazard Asset Management (Deutschland) GmbH
Neue Mainzer Strasse 75
60311 Frankfurt am Main
Germany
Authorised Representative in Switzerland
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
NY 10112-6300
USA
Lazard Asset Management Schweiz AG
Usteristrasse 9
CH-8001 Zurich
Switzerland
ACOLIN Fund Services AG
Stadelhoferstrasse 18
CH-8001 Zürich
Switzerland
Currency Manager
State Street Bank Europe Limited
50 Stratton Street
London W1J 8LL
United Kingdom
Paying Agent in Switzerland
NPB Neue Privat Bank AG
Limmatquai 1/am Bellevue
P.O. Box
CH-8022 Zürich
Switzerland
Lazard Global Investment Funds plc
Year ended 31 March 2016
Directors’ Report
The Board of Directors (the “Directors”) present their annual report together with the audited financial statements for the financial
year ended 31 March 2016. Lazard Global Investment Funds plc (the “Company”) is an open ended investment company with
variable capital structured as an umbrella fund with segregated liability between sub-funds (individually referred to as the “Fund” and
collectively as the “Funds”), which at the year-end had 9 Funds (31 March 2015: 7 Funds) in existence.
Statement of Directors’ Responsibilities
Irish law requires the Directors to prepare financial statements for each financial year that gives a true and fair view of the Company’s
assets, liabilities and financial position as at the end of the financial year and of the profit or loss of the Company for the financial year.
Under that law the Directors have prepared the financial statements in accordance with Generally Accepted Accounting Practice in
Ireland (accounting standards issued by the Financial Reporting Council and promulgated by the Institute of Chartered Accountants
in Ireland and Irish law) including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the United
Kingdom and Republic of Ireland” (“FRS102”).
Under Irish law, the Directors shall not approve the financial statements unless they are satisfied that they give a true and fair view
of the Company’s assets, liabilities and financial position as at the end of the financial year and the profit or loss of the Company for
the financial year.
In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and then apply them consistently;
• make judgements and estimates that are reasonable and prudent;
•state whether the financial statements have been prepared in accordance with applicable accounting standards and identify the
standards in question, subject to any material departures from those standards being disclosed and explained in the notes to the
financial statements; and
•prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue
in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to:
• correctly record and explain the transactions of the Company;
•enable, at any time, the assets, liabilities, financial position and profit or loss of the Company to be determined with reasonable
accuracy; and
•enable the Directors to ensure that the financial statements comply with the Irish Companies Act 2014 and enable those
financial statements to be audited.
The Directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention
and detection of fraud and other irregularities.
The measures taken by the Directors to ensure compliance with the Company’s obligation to keep adequate accounting records
are through the appointment of an experienced administrator, State Street Fund Services (Ireland) Limited, (the "Administrator"),
and through such appointment, the use of appropriate systems and procedures. The accounting records are held at the office of the
Administrator. Under the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations,
2011 (as amended), (the "UCITS Regulations") and the Central Bank’s (Supervision and Enforcement) Act 2013 (section 48(1))
UCITS Regulations 2015, (the "Central Bank UCITS Regulations"), the Directors are required to entrust the assets of the Company
to the depositary for safe-keeping. In carrying out this duty, the Company has delegated custody of the Company’s assets to State
Street Custodial Services (Ireland) Limited, (the "Depositary"). Both the Adminstrator and the Depositary are regulated by and under
the supervision of the Central Bank of Ireland (the “Central Bank”).
Audited annual reports and unaudited interim reports are available on www.lazardassetmanagement.com. The Directors are responsible
for the maintenance and integrity of the financial statements published on this website. Information published on the internet is
accessible in many countries with different legal requirements. Legislation in the Republic of Ireland governing the preparation and
dissemination of financial statements may differ from legislation in other jurisdictions.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
The Directors are responsible for preparing the Directors’ report and the financial statements in accordance with Irish law.
5
Directors’ Report
(continued)
Connected Party Transactions
LAZARD GLOBAL INVESTMENT FUNDS PLC
In accordance with the Central Bank UCITS Regulation 41(1), any transaction carried out with the Company by its promoter,
manager, depositary, investment adviser and/or associated or group companies of these entities (“connected parties”) must be carried
out as if negotiated at arm’s length. Such transactions must be in the best interests of the shareholders. In addition to those transactions,
there are also transactions carried out by connected parties on behalf of the Company to which the Directors have no direct access
and in respect of which the Directors must rely upon assurances from its delegates that the connected parties carrying out those
transactions do carry them out on a similar basis.
6
Shareholders should have regard to the governance structure of the Company as more particularly described in the Corporate
Governance Statement section of this Directors’ Report and the roles and responsibilities of the Company’s respective delegates subject
to the overall supervision of the Board. Further, shareholders should refer to the Prospectus which identifies many of the connected
party transactions and the general nature of the contractual arrangements with the principal connected parties but it is not exhaustive
of all connected party transactions. Shareholders should also refer to the provisions of the Prospectus dealing with conflicts of interest.
Therefore, having regard to confirmations from the Company’s management and its relevant delegates, the Directors of the Company
are satisfied that:
(i) there are arrangements (as evidenced by written procedures documented by Lazard Fund Managers (Ireland) Limited (the
“Manager”)) in place to ensure that the obligations described above are applied to all transactions with connected parties;
and
(ii) transactions with connected parties entered into during the year complied with these obligations, as attested by the
Manager through regular updates to the Directors.
Details of fees paid to related parties and certain connected parties are set out in Note 3 and Note 11 to the financial statements.
However, shareholders should understand that not all “connected parties” are related parties as such latter expression is defined by
Section 33 of FRS 102.
Principal Activities
The investment objectives of each Fund within the Company are set out in the Prospectus. The Company is authorised by the Central
Bank as a UCITS pursuant to the UCITS Regulations and the Central Bank UCITS Regulations.
Review of Business and Future Developments
The Investment Manager’s Reports contain a review of the factors which contributed to the performance for the year. The Directors
do not anticipate any changes in the structure of the Company or investment objectives of any of the Funds in the immediate future.
The Lazard Emerging Markets Corporate Debt Fund has been approved by the Central Bank, this Fund has not yet launched.
Lazard Emerging Markets Allocation Fund was fully redeemed on 10 November 2015, Lazard European Alternative Fund launched
on 28 September 2015, Lazard Emerging Market Debt Unrestricted Blend Fund launched on 8 December 2015 and Lazard US
Fundamental Alternative Fund launched on 4 January 2016. Lazard Diversified Return Fund was approved by the Central Bank on
20 November 2015 but is not yet launched. Please refer to Notes 14 and 15 for further information.
Risk Management Objectives and Policies
Information in relation to the Company’s risk management objectives and policies are included in Note 9 to the financial statements.
Results and Dividends
The results and distributions for the year are set out in the Statement of Comprehensive Income on pages 26, 27 and 28. Please see
Notes 13 and 15 for details of any distributions paid and payable during the year ended 31 March 2016.
Significant Events During the Year And Since The Year End
Please see Notes 14 and 15 for details of any significant events during the year or since the year end.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Directors’ Report
(continued)
Directors
The names of the persons who were Directors of the Company during the year ended 31 March 2016 are set out below:
* Independent Directors (see Corporate Governance Statement below)
** Member of the Audit Committee
All Directors served for the entire year.
All Directors of the Company are also Directors of the Manager.
Directors’ and Secretary’s Interests
Michael Allen, Andreas Hübner and William Smith are full time executives of the Lazard Group, as well as Directors of the Company.
Michael Allen, Andreas Hübner and William Smith are not entitled to any Directors’ fees from the Company. Some of the Directors
of the Company hold indirectly through employee benefit schemes a non material amount of shares in the Company at the financial
year ended 31 March 2016 and 31 March 2015.
Directors’ fees payable by the Company are disclosed in Note 3 to the financial statements.
Transactions Involving Directors
As contemplated by the Corporate Governance Code issued by the Irish Funds (see below), Letters of Appointment have been entered
into between the Company and each of the Directors, all terminable after three months notice.
Daniel Morrissey is a Director of the Company and is also a partner of William Fry (the Company’s legal advisers as to Irish Law).
The partners of William Fry own Wilton Secretarial Limited (the “Secretary”). Accordingly, Daniel Morrissey had a beneficial interest
under the Irish Companies Act 2014 in legal and secretarial fees paid to William Fry and the Secretary and amounts of USD 129,585
were paid for the year ended 31 March 2016 (31 March 2015: USD 367,226).
John Donohoe is a Director of the Company and is also a founder and group CEO of Carne Global Financial Services Limited who
provide directors support to John Donohoe and MLRO services to the Manager and the Company. There were payments made to
Carne Global Financial Services Limited for directors support and MLRO services of USD 38,166 for the year ended 31 March 2016
(31 March 2015: USD 46,519).
All of the Directors are also directors of the Manager and have an interest in fees paid by the Company to the Manager.
The Directors are not aware of any other contracts or arrangements of any significance in relation to the business of the Company,
other than what is disclosed above in the Directors’ and Secretary’s Interests section.
UK Reporting Status
An application has been submitted and approved by the HRMC for offshore fund reporting status. This is relevant to UK tax payers only.
Corporate Governance Statement
Although there is no specific statutory corporate governance code applicable to Irish collective investment schemes, the Company is
subject to corporate governance practices imposed by:
•The Irish Companies Act 2014 which is available for inspection at the registered office of the Company and may also be
obtained at www.irishstatutebook.ie.
•The Constitution (formerly known as the memorandum and articles of association) which is available for inspection at the
registered office of the Company at 2 Grand Canal Square, Dublin 2, Ireland and at the Companies Registration Office in
Ireland.
•The Central Bank in their Central Bank UCITS Regulations which can be obtained from the Central Bank’s website at:
www.centralbank.ie and which are available for inspection at the registered office of the Company.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Michael Allen** (British)
Gavin Caldwell* (Irish)
John Donohoe*/** (Irish)
Andreas Huebner (German)
Daniel Morrissey*/** (Irish)
William Smith (British)
7
Directors’ Report
(continued)
Corporate Governance Statement (continued)
LAZARD GLOBAL INVESTMENT FUNDS PLC
A corporate governance code (the “IF Code”) was issued by the Irish Funds in December 2011 that may be adopted on a voluntary basis
by Irish authorised collective investment schemes. The IF Code may be inspected on/obtained from www.irishfunds.ie. In December
2012, the Directors adopted the IF Code having regard for certain other key pillars of governance within the collective investment fund
governance structure, including:
8
•the role of the Promoter unique within the collective investment fund structure (which is, or a related company of which is,
normally the investment manager of the collective investment fund), as recognised by the Central Bank, in supporting the
corporate governance culture of the Company; and
•
the uniqueness of the independent segregation of duties as between the Investment Manager, the Administrator (with
responsibility for the calculation of the net asset value, amongst other duties) and the independent Depositary (with
responsibility for safeguarding the assets of the Company and overseeing how the Company is managed, amongst other duties),
such segregation of duties/functions being achieved through delegation of respective responsibilities to and appointment of
suitably qualified regulated third party entities which are subject to regulatory supervision.
The Company has no employees and the Directors are all non-executive. Consistent with the regulatory framework applicable
to investment fund companies such as the Company (and in contrast to normal operating companies with a full time executive
management and employees), the Company, consequently, operates under the delegated model whereby it has delegated management
(including investment management), administration and distribution functions to third parties without abrogating the Directors’
overall responsibility. The Directors have in place mechanisms for monitoring the exercise of such delegated functions, which are
always subject to the supervision and direction of the Directors.
These delegations of functions and the appointment of regulated third party entities are detailed in the Company’s Prospectus. In
summary, they are:
1. The Company has appointed the Manager as its Manager pursuant to the Management Agreement. Under the terms of the
Management Agreement, the Manager has responsibility for the management and administration of the Company’s affairs and the
distribution of the shares of the Funds. The Manager is regulated by and under the supervision of the Central Bank;
2. The Manager has delegated the performance of the investment management functions in respect of the Company and of its Funds
to Lazard Asset Management LLC (the “Investment Manager”). The Investment Manager has direct responsibility for the decisions
relating to the day-to-day running of the Funds which it manages and is accountable to the Directors of the Company for the
investment performance of the Funds. The Investment Manager has internal controls and risk management processes in place to
ensure that all applicable risks pertaining to the management of the Funds are identified, monitored and managed at all times and
appropriate reporting is made to the Directors on a regular basis. The Investment Manager is regulated by and under the supervision
of the regulator of its operating jurisdiction, namely the Securities and Exchange Commission of the United States;
3. The Manager has delegated its responsibility as Administrator, Registrar and Transfer Agent to the Administrator. This entity has
responsibility for the day-to-day administration of the Company and the Funds including the calculation of the net asset values. The
Administrator is regulated by and under the supervision of the Central Bank;
4. The Manager has delegated the distribution responsibility for the Funds of the Company to the entities described in the Prospectus.
These entities are regulated by and subject to the supervision of the regulators of their respective operating jurisdictions.
5. The Company also has appointed the Depositary as depositary of its assets. This entity has responsibility for the safekeeping of such
assets in accordance with the UCITS Regulations and for exercising independent oversight over how the Company is managed. The
Depositary is regulated by and under the supervision of the Central Bank.
The Directors receive reports on a regular (and at least quarterly) basis from each of its delegate service providers and the Depositary
which enable them to assess the performance of the delegate service providers and the Depositary (as the case may be).
Financial Reporting Process – description of main features
The Directors are ultimately responsible for overseeing the establishment and maintenance of adequate internal control and risk
management systems of the Company in relation to the financial reporting process. As the Company has no employees and all directors
serve in a non executive capacity, all functions relating to the Company’s financial reporting process, including the preparation of the
Company’s financial statements, have been outsourced to the Administrator.
The Manager has appointed the Administrator to maintain the accounting records of the Company independently of the Investment
Manager and the Depositary and through this appointment the Directors have procedures in place to ensure that all relevant accounting
records are properly maintained and are readily available, including production of annual and half yearly financial statements.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Directors’ Report
(continued)
Corporate Governance Statement (continued)
Financial Reporting Process – description of main features (continued)
The Directors are responsible for assessing the risk of irregularities whether caused by fraud or error in financial reporting and for
ensuring that processes are in place for the timely identification of internal and external matters with a potential effect on financial
reporting. The appointment of an administrator (which is regulated by the Central Bank) independent of the investment manager to
the Company is intended to mitigate though not eliminate the risk of fraud or irregularities which may impact the financial statements
of the Company.
During the year of these financial statements, the Directors were responsible for the review and approval of the annual financial
statements as set out in the Statement of Directors’ Responsibilities. The statutory financial statements are required to be audited by
independent auditors who report annually to the Directors on their findings. The Directors monitor and evaluate the independent
auditor’s performance, qualifications and independence. As part of their review procedures, the Directors receive presentations from
relevant parties including consideration of Irish accounting standards and their impact on the annual financial statements, and
presentations and reports on the audit process. The Directors evaluate and discuss significant accounting and reporting issues as the
need arises.
An Audit Committee, currently consisting of Daniel Morrissey, John Donohoe and Michael Allen, all non-executive Directors, has
also been formed and is charged with oversight of the Company’s audit and financial control functions.
The audited annual financial statements of the Company are required to be approved by the Directors and filed with the Central Bank.
Composition of the Board of Directors
For the appointment and replacement of Directors, the Company is governed by its Constitution and Irish statute comprising the Irish
Companies Act 2014 as applicable to investment funds. The Constitution may be amended by special resolution of the shareholders.
The Constitution does not provide for retirement of Directors by rotation. However, the Directors may be removed by the shareholders
by ordinary resolution in accordance with the procedures established under the Irish Companies Act 2014. A Director may also be
removed upon notice from the Company in accordance with the Letter of Appointment between him and the Company.
The Directors are responsible for managing the business affairs of the Company in accordance with the Constitution. There are
currently six directors (refer to page 7 for details), all of whom are non-executive. Each of William Smith, Michael Allen and Andreas
Huebner are full time executives of the Lazard Group. Each of Gavin Caldwell, John Donohoe and Daniel Morrissey are regarded as
independent directors having regard to the terms of the IF Code on Independence and Independent Directors although firms in which
John Donohoe and Daniel Morrissey have an interest are in receipt of professional fees from the Company. Consequently, neither
John Donohoe nor Daniel Morrissey meet the requirements of paragraph 4.1 of the IF Code which requirements are required to be
met by one Director and which requirements are met by Gavin Caldwell. All related party transactions during the year are detailed in
the notes to the financial statements.
The Directors meet at least quarterly. Other than the Audit Committee, there are no permanent sub-committees of the Directors.
Independent Auditors
The independent auditors, PricewaterhouseCoopers have indicated their willingness to remain in office in accordance with Section
383 of the Irish Companies Act 2014.
On behalf on the Board of Directors
Director: Director:
Date: 29 June 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Subject to the supervision of the Directors and the Manager, the appointment of the Administrator is intended to manage rather than
eliminate the risk of failure to achieve the Company’s financial reporting objectives and can only provide reasonable and not absolute
assurance against material misstatement or loss.
9
Investment Manager’s Reports
Lazard Emerging Markets Bond Fund
Investment Review
Over the twelve months ending 31 March 2016, the Lazard Emerging Markets Bond Fund (the "Fund") returned 3.88% in US dollar
terms, against the JP Morgan EMBI Global Diversified Index return of 4.19%.1
LAZARD GLOBAL INVESTMENT FUNDS PLC
Market Review
10
Despite serious challenges for emerging markets countries, external emerging markets debt held up well during the twelve months due
in large part to its attractive carry. The J.P. Morgan EMBI Global Diversified Index returned 4.19%, although index spreads widened
about 40 basis points during the period largely due to prolonged commodity price weakness. The high yield portion of the index
significantly outperformed the investment grade portion, despite its greater sensitivity to commodity prices. For example, Ukraine
returned over 100% during the period due to a very creditor-friendly outcome to its debt restructuring, and Argentina gained nearly
20%, benefitting from investor optimism following Mauricio Macri’s presidential win.
Portfolio Review
What Detracted from Returns:
•The largest detractor from performance was an underweight position in Ukraine, which we held during the early part of
the reporting period, reflecting our concern that increased conflict with Russia would weigh on Ukrainian growth, therefore
lowering the recovery value for its creditors in the event of a restructuring. We subsequently adjusted this position to an
overweight following the announcement that Ukraine had reached a restructuring agreement with its creditors.
What Contributed to Returns:
•Bottom-up security selection drove relative returns and key contributors included overweight positions in Argentina and
Slovenia. We are encouraged by the early reform momentum of Argentina’s newly elected president, Mauricio Macri, and we
believe he will continue to deliver on his economic adjustment plans, which should reinvigorate growth and reduce inflation,
further restoring investor confidence.
•Slovenia has an attractive spread relative to other high quality credits and we continue to believe it should perform well based
on its strong fundamentals and the European Central Bank’s continuing monetary stimulus.
Outlook
Argentina and Slovenia remain among the Fund’s highest expected return and highest conviction positions. In addition, we recently
began adding to the Fund’s overweight position in Brazil. While Brazil faces numerous challenges, including the country’s deepest
recession in decades and double-digit inflation, valuations have become very attractive as Brazilian spreads have reached levels not seen
since the depths of the global financial crisis. Brazil has very low levels of external debt and its current account has been improving
for the past several months.
In Eastern Europe, Poland remains among the Fund’s key underweight positions as we favour Hungary due to its more attractive
valuations and improving fundamentals. The Fund’s other key underweight positions continue to be China, Lebanon, and Malaysia.
As has been the case for the past six months, the Fund continues to hold no exposure to corporates. We prefer sovereign debt due to
its better valuations, stronger fundamentals, and better liquidity relative to corporates.
All data contained herein are sourced by Lazard Asset Management LLC unless otherwise noted as at 31 March 2016.
1 Source: Morningstar Direct, Cumulative Growth, Bid Price to Bid Price, Gross dividend reinvested, Net of Fees in US Dollar
terms, Institutional Share Class to 31 March 2016.
Fund Manager: Denise Simon, Arif Joshi and team.
Figures refer to past performance and past performance is not a reliable indicator of future results.
Lazard Asset Management LLC
March 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
Investment Manager’s Reports
(continued)
Lazard Emerging Markets Local Debt Fund
Investment Review
Over the twelve months ending 31 March 2016, the Lazard Emerging Markets Local Debt Fund (the "Fund") returned -3.02% in US
Dollar terms against the JP Morgan GBI-EM Global Diversified Index return of -1.65%.1
Emerging markets local currency debt posted disappointing returns throughout most of the twelve months but waged a staggering
comeback in January 2016. In the first nine months, local currency debt declined more than 11%, reflecting the 12% depreciation in
emerging markets currencies versus the US dollar. A number of factors contributed to the decline of local currencies, including slowing
emerging markets growth, the sharp and prolonged drop in commodity prices, and a number of China-based risks, such as slowing
growth and renminbi devaluation.
These fears reached their peak in January at which point local currency debt staged one of its largest rallies in years. A confluence of
factors helped the asset class reverse course, including dovish policy and rhetoric from global central banks, a rebound in commodity
prices, and stability in Chinese renminbi fixes. Nevertheless, we maintain a cautious outlook on local currency debt as emerging markets
growth fundamentals have yet to improve.
Portfolio Review
What Detracted from Returns:
•Gains from the Fund’s duration positioning in individual countries were more than offset by active currency positioning.
•Among the Fund’s currency positions, one of the largest detractors was a long position in the Polish zloty, held against the
euro. We held this position largely on valuation grounds, as we believed weakness in the zloty following Poland’s October
parliamentary election was overdone. However, the position underperformed due in large part to Standard & Poor’s unexpected
ratings downgrade of Poland’s foreign and local currency debt and the ratings agency’s revision of Poland’s outlook from positive
to negative.
What Contributed to Returns:
•A number of country-specific positions helped returns, including underweight duration positions in South African and
Colombian rates and overweight positions in eastern European countries, including Hungary and Poland.
•The Fund’s underweight position in South Africa was predicated on our view that South African yields would underperform
due to challenging external fundamentals as well as inflation pressures resulting from the need to raise electricity prices to return
state-owned utility companies to profitability.
Outlook
We continue to favor local rates and recently increased the Fund’s overall duration overweight to just less than half a year. We moved to
a duration overweight in Brazil as real rates are attractive and fading fears of a US recession should set the stage for Brazil’s continued
outperformance. Thailand remains the Fund’s largest duration underweight as we believe the term premium is too low, with yields
close to historical lows.
While emerging markets currency challenges persist, we continue to see attractive valuations in several currencies, notably the Mexican
peso, and a number of opportunities to earn attractive carry. Mexico is one of the few bright spots in emerging markets and should
investors refocus on monetary policy divergence between the US Federal Reserve and other major central banks, the peso would be
likely to benefit.
All data contained herein are sourced by Lazard Asset Management LLC unless otherwise noted as at 31 March 2016.
1
Source: Morningstar Direct, Cumulative Growth, Bid Price to Bid Price, Gross dividend reinvested, Net of Fees in US Dollar
terms, Institutional Share Class to 31 March 2016.
Fund Manager: Denise Simon, Arif Joshi and team.
Figures refer to past performance and past performance is not a reliable indicator of future results.
Lazard Asset Management LLC
March 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Market Review
11
Investment Manager’s Reports
(continued)
Lazard Emerging Markets Total Return Debt Fund
Investment Review
Over the twelve months ending 31 March 2016, the Lazard Emerging Markets Total Return Debt Fund (the "Fund") returned -2.89%
in US Dollar terms.1
LAZARD GLOBAL INVESTMENT FUNDS PLC
Market Review
12
Dispersion was a key theme in emerging markets debt over the twelve months. Despite the challenges faced by emerging markets,
external emerging markets debt held up well, returning 4.19% over the period. However local currency debt lost 1.65%, reflecting an
11% decline in the first nine months followed by a rebound in January. This nine-month streak of under-performance was attributed to
the 12% depreciation in emerging markets currencies versus the US dollar. A number of factors weighed on local currencies, including
slowing emerging markets growth and commodity price weakness. These fears peaked in January, whereupon local currency debt staged
one of its largest rallies in years, driven by dovish central bank policy and rhetoric, better commodity prices, and more stable Chinese
renminbi fixes.
We maintain a cautious outlook on local currency debt as emerging markets growth fundamentals have yet to improve.
Within external debt, country returns diverged sharply. For example, Ukraine returned over 100% during the twelve months due to a
creditor-friendly outcome to its debt restructuring, while Belize declined more than 25% after US banks severed ties with Belize’s local
banks, prompting a credit warning from Moody’s.
Portfolio Review
What Detracted from Returns:
•A tactical move into local currency debt in summer detracted from absolute returns. This decision was based on the view that
significant negative news was already priced into valuations, and improving current accounts in certain emerging markets
would drive local currency outperformance. These considerations were overwhelmed by China-related concerns, including the
country’s slowing economy, the reason for the renminbi devaluation, and the potential for Chinese policy error.
What Contributed to Returns
•The Fund’s net long exposure was focused on hard currency debt, which helped performance.
•The Fund’s absolute performance benefited from positions in dollar-denominated European sovereign debt, notably in Hungary
and Slovenia. These countries have relatively low risk compared to other emerging markets and we believe that the credit spreads
of European Union members should converge over time.
•Positions in high quality sovereign credits, such as Panama, Mexico, Indonesia, and Colombia also added to returns.
Outlook
We believe duration-sensitive emerging markets debt should perform well in an environment of low growth, low inflation, and general
central bank dovishness. We continue to focus on three primary themes within hard currency debt. Firstly, we favour European
sovereign debt, which should benefit from European Central Bank stimulus in the near term and spread convergence among countries
supported by the European Union in the longer term. Secondly, we favour other high quality countries with attractive carry profiles.
Thirdly, we favour a small number of higher yielding event-driven credits, including Cote d’Ivoire.
Although the Fund has no net currency exposure, we maintain a long position in the Indian rupee versus the Thai baht and Taiwan
dollar and a long position in the Polish zloty versus the euro. Should the emerging markets rally continue, we may trim the Fund’s
overall risk profile in order to preserve recent gains.
All data contained herein are sourced by Lazard Asset Management LLC unless otherwise noted as at 31 March 2016.
1 Source: Morningstar Direct, Cumulative Growth, Bid Price to Bid Price, Gross dividend reinvested, Net of Fees in US Dollar
terms, Institutional Share Class to 31 March 2016.
Fund Manager: Denise Simon, Arif Joshi and team.
Figures refer to past performance and past performance is not a reliable indicator of future results.
Lazard Asset Management LLC
March 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
Investment Manager’s Reports
(continued)
Lazard Emerging Markets Allocation Fund
Investment Review
From 31 March 2015 to 10 November 2015 (the date of its liquidation), the Lazard Emerging Markets Allocation Fund (the "Fund")
returned -7.66% in US Dollar terms against the MSCI Emerging Markets Index returned -12.91%.1
The Portfolio was managed using a combination of the Investment Manager’s emerging market equity and fixed income strategies.
The Investment Manager considered a market forecast based on four categories pertinent to allocation decisions among the strategies:
Economy, Valuation, Liquidity, and Sentiment.
Changes made to the market forecast during the period reflected consideration of many factors, including: the monetary policies
of central banks around the globe; global macro data readings (particularly Purchasing Managers Indices, which give up-to-date
readings of economic activity) in China, the United States, the euro zone, and Japan; fiscal policy in developed and emerging markets;
geopolitical events and risks; and equity and fixed income valuations, along with other data.
Portfolio Review
What Detracted from Returns:
•Our higher-than-index position in Indonesian equities detracted from returns as weak oil prices weighed on the market. Our
exposure to Argentinian equities was also detrimental to performance.
•Our selection of stocks in the energy and telecommunication services sectors cost some performance, as did our choice of stocks
in Brazil and South Korea.
•The exposure to the local currencies of Zambia, Uganda, Mexico, Russia, Colombia, Malaysia and Indonesia held back returns.
•Our holdings of local currency bonds in Brazil and Indonesia were detrimental.
What Contributed to Returns:
•Our higher-than-index exposure to Russian equities added value. Following steep falls at the end of the previous year, they
rebounded during the first six months of 2015.
•We held a lower-than-index position in Malaysian stocks. This was beneficial since Malaysian stocks were affected by
unfavourable policy developments.
•Our selection of stocks in the consumer staples, industrials and information technology sectors boosted the Fund’s relative
return. The choice of stocks in Taiwan, China, Russia and Malaysia was also helpful.
•Our exposures to local currencies of Serbia, Dominican Republic and Egypt made a positive contribution to returns, as did our
holdings of local currency Polish bonds.
Outlook
This fund closed on 10th November 2015.
All data contained herein are sourced by Lazard Asset Management LLC unless otherwise noted as at 31 March 2016.
1
Source: Morningstar Direct, Cumulative Growth, Bid Price to Bid Price, Gross dividend reinvested, Net of Fees in US Dollar
terms, Institutional Share Class to 31 March 2016.
Fund Manager: Denise Simon, Arif Joshi and team.
Figures refer to past performance and past performance is not a reliable indicator of future results.
Lazard Asset Management LLC
March 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Market Review
13
Investment Manager’s Reports
(continued)
Lazard Emerging Markets Debt Blend Fund
Investment Review
LAZARD GLOBAL INVESTMENT FUNDS PLC
For the twelve months ended 31 March 2016, the Lazard Emerging Markets Debt Blend Fund (the "Fund") returned -2.4% in
US dollar terms against the return of 1.3% for the 50% J.P. Morgan EMBI Global Diversified/50% J.P. Morgan GBI-EM Global
Diversified Index.1
14
Market Review
Wide variation in performance was a key theme in emerging markets debt during the twelve month period. Despite the challenges
faced by emerging economies, external debt held up well, returning 4.19% during this time frame. Conversely, local currency debt lost
1.65%, reflecting an 11% decline in the first nine months followed by a rebound in January.
This streak of underperformance was attributed to the 12% depreciation in emerging markets currencies versus the US dollar. A
number of factors weighed on local currencies, including slowing emerging markets growth and commodity price weakness. Fears
peaked in January. Thereafter local currency debt staged one of its largest rallies in years, driven by dovish global central bank policy
and rhetoric, a firming in commodity prices, and more stable Chinese exchange rate fixes.
Within external debt held in hard currencies such as dollars and euros, country returns diverged sharply. Ukraine returned over 100%
during the twelve months due to a creditor-friendly outcome to its debt restructuring, while Belize declined more than 25% after US
banks severed ties with Belize’s local banks, prompting a credit warning from Moody’s.
Portfolio Review
What Detracted from Returns:
•Overweight exposure to local currency debt in the summer of 2015 detracted from performance as local debt underperformed
hard currency debt.
•Improving external balances in some emerging markets appeared to suggest local currency would outperform, however this was
outweighed by China-related concerns, including China’s slowing economy, the renminbi devaluation, and the potential for
Chinese policy error. We subsequently reduced the Fund’s local currency exposure due to a lack of near-term catalysts.
What Contributed to Returns:
•The Fund’s absolute performance benefited from positions in dollar-denominated European sovereign debt, including Hungary
and Slovenia. These countries have relatively low risk compared to other emerging markets and we believe the prices of the debt
of European Union member countries should converge over time.
•Positions in high quality sovereign credits, such as Panama, Mexico, Indonesia, and Colombia, were also beneficial to returns.
Outlook
Despite the recent emerging markets debt rally, our macroeconomic views remain largely unchanged. We continue to believe we are in
a low growth, low interest rate environment. Accordingly, we favour hard currency debt due to its greater sensitivity to interest rates.
We maintain a negative outlook on local currencies as we believe the recent rally is unsustainable given the lack of fundamental
improvement in emerging markets growth and our view that commodity prices are vulnerable to further weakness given continued
supply-demand imbalances.
While a dovish US central bank and recent dollar weakness are near-term positives, we believe that the recent strength in currencies
simply reflects a bear market rally that is on unstable ground.
All data contained herein are sourced by Lazard Asset Management LLC unless otherwise noted as at 31 March 2016.
1 Source: Morningstar Direct, Cumulative Growth, Bid Price to Bid Price, Gross dividend reinvested, Net of Fees in US Dollar
terms, Institutional Share Class to 31 March 2016.
Fund Manager: Denise Simon, Arif Joshi and team.
Figures refer to past performance and past performance is not a reliable indicator of future results.
Lazard Asset Management LLC
March 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
Investment Manager’s Reports
(continued)
Lazard Emerging Markets Debt Unrestricted Blend Fund
Investment Review
Market Review
Emerging market debt had a difficult start in 2016. Three weeks into 2016, external debt was down by 2% while local currency debt
had sold off by 4%. But the asset class as a whole then bounced back sharply, returning over 7% from its January nadir, while local
debt returned an astounding 15%.
A number of factors helped emerging markets debt reverse course, including a rebound in commodity prices and stability in Chinese
renminbi exchange rate fixes. While these factors undoubtedly helped improve investors’ appetite for risk, the largest driver of the rally
has been the dovish actions and rhetoric of central banks across the globe.
It is notable, however, that emerging markets growth fundamentals have not improved since the start of the year and, in some cases,
have deteriorated. Thus, we are concerned about the sustainability of the recent rally and have maintained a cautious approach to
segments of the asset class that are more heavily dependent on emerging markets growth, such as local currency debt.
Portfolio Review
What Detracted from Returns:
•Nearly all of the strategy’s underperformance can be attributed to the portfolio’s bias towards hard currency debt. Local currency
debt outperformed hard currency debt by nearly 6% in the beginning of 2016. We believe the rally in local debt was driven more
by risk appetite, which was fueled by central bank dovishness and less by improving fundamentals. Thus, we slightly increased
the strategy’s overall underweight in local debt, ending the year with an allocation of 62% external debt and 38% local debt.
What Contributed to Returns:
•Within the strategy’s local debt exposure, duration positioning contributed positively to performance but was partially offset by
currency positions. An overweight duration position in Brazil was beneficial as Brazil was the best-performing country in local
rates, boosted by the increased likelihood that President Dilma Rousseff will not finish her term in office.
•Within the strategy’s external debt allocation, a modest underweight position in investment-grade countries which lagged in
the rally, including China and Poland, helped returns.
Outlook
Despite the recent emerging markets debt rally, our macroeconomic views remain largely unchanged. We continue to believe we are
in a low growth, low interest rate environment. Accordingly, we favour hard currency debt due to its greater sensitivity to interest
rates. We maintain a negative outlook on local currencies as we believe the recent rally is unsustainable given the lack of fundamental
improvements in emerging markets growth and our view that commodity prices are vulnerable to further weakness given continued
supply-demand imbalances. While a dovish US central bank and recent dollar weakness are near-term positives, we believe that the
recent strength in currencies simply reflects a bear market rally that is on unstable ground.
All data contained herein are sourced by Lazard Asset Management LLC unless otherwise noted as at 31 March 2016.
1
Source: Morningstar Direct, Cumulative Growth, Bid Price to Bid Price, Gross dividend reinvested, Net of Fees in US Dollar
terms, Institutional Share Class to 31 March 2016.
Fund Manager: Denise Simon, Arif Joshi and team.
Figures refer to past performance and past performance is not a reliable indicator of future results.
Lazard Asset Management LLC
March 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
For the period from its inception on 8 December 2015 to 31 March 2016, the Lazard Emerging Markets Debt Blend Unrestricted
Fund (the "Fund") returned 6.4% in US dollar terms, against the return of 7.4% for the 50% J.P. Morgan EMBI Global Diversified/50%
J.P. Morgan GBI-EM Global Diversified Index.1
15
Investment Manager’s Reports
(continued)
Lazard Opportunities Fund
Investment Review
Over the twelve months ending 31 March 2016, the Lazard Opportunities Fund (the "Fund") returned -6.2% in Sterling terms.1
LAZARD GLOBAL INVESTMENT FUNDS PLC
Market Review
16
It was an extraordinarily volatile year in markets. Global equities came under pressure in the third quarter of 2015 and many indices had
their worst quarter since 2011. Worries about a possible Greek exit from the euro were quickly followed by increasing concerns over
a slowing China and the timing of interest rate rises by the US Federal Reserve. Commodities were weaker due to global oversupply
and lower demand from China.
The speed and widespread nature of the equity market sell-off that began the first quarter of 2016 caught investors by surprise in what
was, at one point, the worst start to the year for most major US equity indices since the 1930s. Equally startling was the steady climb
of broad equity markets from the third week in February to the end of March, leaving the S&P 500 Index close to its high of the
year. Commodities, including metals, mining, and energy, had driven the market lower through the first six weeks of the year however,
subsequently drove the market just as forcefully up, triggering rallies in early cyclicals and industrials. Credit spreads reflected risk-off
concerns globally as the market focused on lower global growth and trade and worried about deflation rather than inflation.
Portfolio Review
What Detracted from Returns:
•Although relatively small in the portfolio, commodity and natural resource related exposure was a drag on performance in 2015.
•Performance in 2015 and the first quarter of 2016 was affected by falls in debt prices and an overall reduction in risk appetite
that affected the credit component of many convertibles. Convertibles cheapened relative to fair value as the market was slow
to incorporate the full value of increased equity volatility.
•Generally weak corporate guidance on fourth quarter 2015 earnings announcements made for an environment in which
investors were risk averse and contributed to the repricing of balanced credits.
What Contributed to Returns:
•Company specific events uncorrelated with macro forces continued to allow for value capture in the third and fourth quarters
of 2015.
•In addition to special situations and events, the portfolio benefitted from a higher level of market volatility.
•Macro hedges and interest rate hedges positively offset period of investor risk aversion in markets throughout 2015.
Outlook
Concerns about a US recession or steep near-term drop in China’s growth rate have dissipated. Improving economic data in the United
States and a dovish Fed appear to provide support for the recent market rally.
Market direction going forward is likely to be dictated by upcoming first quarter earnings results and guidance. With valuations now
at levels last seen in 2011 and parts of 2009, and an increase in corporate special situation activity, we believe the portfolio remains
well-positioned.
All data contained herein are sourced by Lazard Asset Management unless otherwise noted as at 31 March 2016.
1
Source: Lazard Asset Management, Net of Fees, in Sterling terms, Institutional Share Class to 31 March 2016.
Fund Manager: Sean Reynolds and team.
Figures refer to past performance and past performance is not a reliable indicator of future results.
Lazard Asset Management LLC
March 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
Investment Manager’s Reports
(continued)
Lazard Global Hexagon Equity Fund
Investment Review
Over the past 12 months, the Lazard Global Hexagon Equity Fund (the "Fund") returned -6.5% in U.S. Dollar terms, outperforming
the HFRX Equity Hedge Index’s return of -7.2%.1
Global markets were predominantly driven by macroeconomic factors and momentum during the period. Equities in both developed
and emerging markets posted negative returns with the MSCI World Index returning -7.3%. With the Federal Reserve’s first rate
hike in December and generally benign economic data for the US, the S&P 500 was the top performing region, returning -1.2%.
Meanwhile, the MSCI Europe Index declined over 15%, as European stocks were adversely impacted by the region’s slow, ambiguous
path to economic recovery, the terrorist attacks in Paris and Brussels and uncertainty over surrounding “Brexit.” In spite of the double
digit rally in March, the MSCI Emerging Markets Index posted a loss of 20.1% for the period with investors remaining concerned
about the impact of lower oil prices; China’s slowing economic growth, and US dollar strength. In Japan, foreign capital outflows
reflected growing skepticism on the effectiveness of Abenomics even after the Bank of Japan’s decision to adopt a negative interest rate
policy. Japanese equity prices were weak and usually volatile with the TOPIX returning -15.4%.
Portfolio Review
What Detracted from Returns:
•Spikes in volatility combined with momentum- and macro-driven markets have created a challenging environment for alpha
generation and value investing
•Long exposure to oil-related stocks with inadequate short exposure as a downside buffer. Although the portfolio's exposure to
oil was small relative to the total net exposure, the beta of some of the individual names was high
•Long exposure to European financials was detrimental
•Long exposure to Health Care names had a negative impact on returns
What Contributed to Returns:
•Strong stock selection and positive alpha generation in Europe, Japan and emerging markets
•Long exposure to European companies that are compounders and/or are eurodollar beneficiaries with limited/no exposure to
oil or emerging markets
•Long exposure to Brazil after its equity market was, in our view, oversold due to the convergence of various negative factors: low
commodity prices, rising inflation, a strong US dollar, political scandal/presidential impeachment and the Zika virus
Outlook
After a volatile and turbulent first quarter, we are encouraged by signs implying that value investing may be gradually returning to the
forefront. After what has been one of the best five-year rallies for US equities, we anticipate that corporate margins may come under
pressure in the coming months. In spite of encouraging employment and consumption data, we believe that there are few signs of a
near-term lift-off for the US economy.
In emerging markets, our current view is that selectivity is the key – whether it is at the country or security level. While there are
some oversold companies with attractive asymmetrical risk/reward characteristics, we think that investor sentiment towards emerging
markets is still tepid. Concerns about China have tempered slightly following the recent rebound, but in our view, the growing pains transitioning from an investment-led to a consumption-driven economy - are not likely to subside anytime soon. We believe that each
emerging market country faces different factors and dynamics and that it would be unwise to treat them as one collective group. With
commodity prices expected to trade within a new lower range in the short- and medium-term, we anticipate that emerging market
countries that are net commodity importers will likely be better positioned than net commodity producers/exporters.
To a certain extent, we believe that this is also the case in Europe. Although there is more cohesiveness than across emerging markets,
European countries are not necessarily proceeding along the same trajectory, for example, Spain’s GDP growth for 2016 is projected
to be over 2% while Germany is expected to grow at approximately half that rate after selling government debt at negative yield for
the first time. In Europe, we expect that the markets will be choppy over the next couple of quarters, and we intend to focus on stock
picking, particularly on compounders that, in our view, have strong company-specific fundamentals and are better equipped to weather
volatility.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Market Review
17
Investment Manager’s Reports
(continued)
Lazard Global Hexagon Equity Fund (continued)
Outlook (continued)
LAZARD GLOBAL INVESTMENT FUNDS PLC
In Japan, we believe that the economy is at a critical juncture as the government and central bank attempt to resolve the country’s
many problems by enacting significant structural and policy changes. Instead of viewing the Bank of Japan’s decision to adopt negative
interest rates in late January as a positive development, it appears that the market has interpreted the move as a signal that Governor
Kuroda has limited policy options. With the yen making recent highs against the dollar, we are not convinced that the opportunities
in the Japanese equity market are compelling enough to warrant the numerous, near-term, downside risks.
18
All data contained herein are sourced by Lazard Asset Management unless otherwise noted as at 31 March 2016.
1
Source: Lazard Asset Management, Net of Fees, in U.S. Dollar terms, Institutional Share Class to 31 March 2016.
Fund Manager: Jean-Daniel Malan and team.
Figures refer to past performance and past performance
Lazard Asset Management LLC
March 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
Investment Manager’s Reports
(continued)
Lazard European Alternative Fund
Investment Review:
Since its launch on 28 September 2015 until 31 March 2016, the Lazard European Alternative Fund (the "Fund") in Euro terms,
returned -0.01% against -2.1% for the MSCI European TR Net Index.1
European equities followed a volatile trajectory over the 6 months under review, as Q4 saw the market rally more than 10% by start
of December, followed by a precipitous fall (more than 20%) by mid-February and a subsequent recovery to end up down just 2.1%
by the end of March as reported above. European banks were the worst performing sector over that period, losing more than 20%, as
their negative earnings momentum worsened due to the implementation by the ECB implementing of a negative interest rates policy.
The automotive sector on the contrary outperformed and ended up 8% over that period, supported by recovering car sales in Europe.
Portfolio Review
What detracted returns
•On the long side, we lost money in Hikma, the UK listed pharmaceutical company as they unexpectedly revised the terms
of an acquisition. We also lost money in ING as the bank sector was under heavy pressure.
•On the short side, we lost money in an oil services company and an industrial company.
What contributed to returns
•From a portfolio construction point of view, our low exposure to the market served us well in these volatile times.
Similarly, our index hedges were particularly helpful to preserve capital over the December-February period.
•On the long side, we made money in NN group, the Dutch insurer spun off from ING, as our view that it was
overcapitalised was confirmed by the publication of strong solvency ratios. We also made money in Renault, the French
car maker, which benefited from buoyant European markets.
•On the short side, we made money in a cement company, a car maker and a chemical company.
Outlook:
In our view, the current environment is characterised by the US Federal Reserve’s attempt to normalise its monetary policy. Quantitative
easing and zero interest rate policies have been a very significant support for asset prices over the past few years, and it would be logical
to expect a less favourable liquidity environment to be a headwind. On a more positive note, there are encouraging signs in terms of
economic growth both in Europe and in the US and even signs of stabilisation in some emerging markets, but growth nonetheless
remain subpar on a global level. Given the many contradictory trends equity markets are facing, we believe they will continue to evolve
in a lateral pattern with significant volatility.
All data contained herein are sourced by Lazard Asset Management LLC unless otherwise noted as at 31 March 2016.
1
Source: Lazard Asset Management LLC Cumulative Growth, Net of fees, in Euro terms, Institutional Accumulating Share
Class to 31 March 2016.
Fund Manager: Leopold Arminjon
Figures refer to past performance and past performance is note a reliable indicator of future results.
Lazard Asset Management LLC
March 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Market Review:
19
Investment Manager’s Reports
(continued)
Lazard US Fundamental Alternative Fund
Investment Review
Since its launch on 4 January 2016 until 31 March 2016 the Lazard US Fundamental Alternative Fund (the "Fund") in US Dollar
terms returned -3.8% against the return of 2.7% for the S&P 500 Index return and -2.0% for the HFRX Equity Hedge Index. 1
LAZARD GLOBAL INVESTMENT FUNDS PLC
Market Review
20
The S&P 500 Index rose by 1.4% during the first quarter. The modest gains masked a particularly volatile quarter as markets were
down as much as 10% intra-quarter on the back of concerns about the Chinese economy, commodity price declines, and a series of
disappointing corporate earnings announcements. However, markets rallied in the latter half of the quarter as the Federal Reserve
lowered its forecast for 2016 interest rate increases, while positive US economic data and a rebound in oil prices also encouraged
investors. Fourth quarter annualized US GDP growth was revised upward to 1.4%, surpassing consensus expectations. Employment
data were generally strong, as the unemployment rate fell to a post-crisis low of 4.9%, and the economy added more jobs than expected
in two of the last three months, capping the largest two-year private payroll gain since 1999.
Portfolio Review
What Detracted from Returns:
•The portfolio was hurt by a long position in industrial equipment rental provider United Rentals, as shares fell after the company
reported quarterly earnings below expectations and management issued disappointing guidance, driven by lower rental rates. We
sold our position after the announcement in January.
•A long position in medical device maker Natus Medical also detracted from performance, as shares fell amid scepticism that the
company would meet management’s 2016 earnings guidance.
•The portfolio was also hurt by its long position in consumer financial services provider, OneMain, as shares fell amid continued
concerns about the company’s funding costs in a rising rate environment, as well as its subprime loan exposure. We sold our
position in February, as a reassessment of our scenarios resulted in the risk-adjusted upside no longer being favourable.
What Contributed to Returns:
•A long position in clothing and apparel maker Deckers contributed to performance, as shares rose after the company reported
quarterly earnings. While sales fell amid unfavorable weather, investors were encouraged that management’s guidance was
conservative and that the company’s growth prospects for 2016 seemed realistic.
•A long position in professional services provider Aon also helped returns, as shares rose after management issued encouraging
guidance, citing margin expansion stemming from various investments over the last few years.
•The portfolio also benefited from a short position in Texas bank Cullen/Frost, as shares fell after the company’s quarterly results
included an increase in credit costs. We covered our position after the announcement in January, as the stock approached our
target valuation.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Investment Manager’s Reports
(continued)
Lazard US Fundamental Alternative Fund (continued)
Outlook
We continue to believe that US equities, while expensive relative to history, present good investment opportunities, especially in the
sustained low interest rate environment we expect over the next 2 to 3 years. In spite of our moderate expectations for real GDP growth,
we expect moderate revenue growth, sustained positive operating leverage and mid- to high-single digit earnings growth for the US
equity market. This environment should also be one in which fundamental research is rewarded as share price dispersion increases.
All data contained herein are sourced by Lazard Asset Management LLC unless otherwise noted as at 31 March 2016.
1
Source: Morningstar Direct, Cumulative Growth, Bid Price to Bid Price, Gross Dividend Reinvested, Net of Fees, in US
Dollar terms, Institutional Accumulating Share Class to 31 March 2016.
Fund Managers: Martin Flood, Dimitri Batsev, Jerry Lui and team.
Figures refer to past performance and past performance is note a reliable indicator of future results.
Lazard Asset Management LLC
March 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Despite the continuing volatility in markets, our outlook on the US economy remains positive. While global uncertainties pose some
risks, we believe the United States is relatively well insulated and that there is underestimated potential for a strengthening recovery
as the long overhang of the crisis recedes and the middle class participates more fully.
21
Custodian's Report
Custodian’s Report to the Shareholders of Lazard Global Investment
Funds plc
We have enquired into the conduct of Lazard Global Investment Funds plc (the “Company”) for the period from 1 April 2015 to 17
March 2016 in our capacity as Custodian to the Company.
LAZARD GLOBAL INVESTMENT FUNDS PLC
This report including the opinion has been prepared for and solely for circulation to the Shareholders in the Company in accordance
with the Central Bank’s UCITS Notice 4 and for no other purpose. We do not, in giving this opinion, accept or assume responsibility
for any other purpose or to any other person to whom this report is shown.
22
Responsibilities of the Custodian
Our duties and responsibilities are outlined in the Central Bank’s UCITS Notice 4. One of those duties is to enquire into the conduct
of the Company in each annual accounting year and report thereon to the Shareholders.
Our report shall state whether, in our opinion, the Company has been managed in that year in accordance with the provisions of the
Company’s Constitution and the UCITS Regulations. It is the overall responsibility of the Company to comply with these provisions.
If the Company has not so complied, we as Custodian must state why this is the case and outline the steps which we have taken to
rectify the situation.
Basis of Custodian Opinion
The Custodian conducts such reviews as it, in its reasonable opinion, considers necessary in order to comply with its duties as outlined
in UCITS Notice 4 and to ensure that, in all material respects, the Company has been managed:
i) in accordance with the limitations imposed on its investment and borrowing powers by the provisions of its
constitutional documentation and the appropriate regulations; and
ii) otherwise in accordance with the Company’s constitutional documentation and the appropriate regulations.
Opinion
In our opinion, the Company has been managed during the period, in all material respects:
i) in accordance with the limitations imposed on the investment and borrowing powers of the Company by the Constitution
and by the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011
(the “Regulations”) (as amended); and
ii) otherwise in accordance with the provisions of the Constitution and the Regulations.
State Street Custodial Services (Ireland) Limited
78 Sir John Rogerson’s Quay
Dublin 2
Ireland
Date: 29 June 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
Depositary's Report
Report of the Depositary to the Shareholders
We have enquired into the conduct of Lazard Global Investment Funds plc (“the Company”) for the period from 18 March 2016 to
31 March 2016, in our capacity as Depositary to the Company.
Responsibilities of the Depositary
Our duties and responsibilities are outlined in Regulation 34, (1), (3) and (4) in Part 5 of the UCITS Regulations. One of those duties
is to enquire into the conduct of the Company in each annual accounting period and report thereon to the shareholders.
Our report shall state whether, in our opinion, the Company has been managed in that period in accordance with the provisions of the
Company’s Constitution and the UCITS Regulations. It is the overall responsibility of the Company to comply with these provisions.
If the Company has not so complied, we as Depositary must state why this is the case and outline the steps which we have taken to
rectify the situation.
Basis of Depositary Opinion
The Depositary conducts such reviews as it, in its reasonable opinion, considers necessary in order to comply with its duties as outlined
in Regulation 34, (1), (3) and (4) in Part 5 of the UCITS Regulations and to ensure that, in all material respects, the Company has been
managed (i) in accordance with the limitations imposed on its investment and borrowing powers by the provisions of the Company’s
Constitution and the UCITS Regulations and (ii) otherwise in accordance with the Company’s constitutional documentation and the
appropriate regulations.
Opinion
In our opinion, the Company has been managed during the period, in all material respects:
(i) in accordance with the limitations imposed on the investment and borrowing powers of the Company by the
Constitution, the UCITS Regulations and the Central Bank (Supervision and Enforcement) Act 2013 (Section 48(1))
(Undertakings for Collective Investment in Transferable Securities) Regulations 2015 (‘the Central Bank UCITS
Regulations’); and
(ii) otherwise in accordance with the provisions of the Constitution, the UCITS Regulations and the Central Bank UCITS
Regulations.
State Street Custodial Services (Ireland) Limited
78 Sir John Rogerson’s Quay
Dublin 2
Ireland
Date: 29 June 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
This report including the opinion has been prepared for and solely for the shareholders in the Company in accordance with Regulation
34, (1), (3) and (4) in Part 5 of the European Communities (Undertakings for Collective Investment in Transferable Securities)
Regulations 2011, as amended, (‘the UCITS Regulations’), and for no other purpose. We do not, in giving this opinion, accept or
assume responsibility for any other purpose or to any other person to whom this report is shown.
23
Independent Auditors’ Report
Independent auditors’ report to the members of Lazard Global
Investment Funds plc
Report on the financial statements
Our opinion
LAZARD GLOBAL INVESTMENT FUNDS PLC
In our opinion, Lazard Global Investment Funds plc’s financial statements (the “financial statements”):
24
• give a true and fair view of the company’s and funds’ assets, liabilities and financial position as at 31 March 2016 and of their
results for the year then ended;
• have been properly prepared in accordance with Generally Accepted Accounting Practice in Ireland; and
• have been properly prepared in accordance with the requirements of the Companies Act 2014 and the European Communities
(Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (as amended).
What we have audited
The financial statements comprise:
• the statement of financial position as at 31 March 2016;
• the statement of comprehensive income for the year then ended;
• the statement of changes in net assets attributable to redeemable participating shareholders for the year then ended;
• the portfolio of investments for each of the funds as at 31 March 2016; and
• the notes to the financial statements for the company and for each of its funds which include a summary of significant accounting
policies and other explanatory information.
The financial reporting framework that has been applied in the preparation of the financial statements is Irish law and accounting
standards issued by the Financial Reporting Council and promulgated by the Institute of Chartered Accountants in Ireland (Generally
Accepted Accounting Practice in Ireland).
In applying the financial reporting framework, the directors have made a number of subjective judgements, for example in respect of
significant accounting estimates. In making such estimates, they have made assumptions and considered future events.
Matters on which we are required to report by the Companies Act 2014
• We have obtained all the information and explanations which we consider necessary for the purposes of our audit.
• In our opinion the accounting records of the company were sufficient to permit the financial statements to be readily and properly
audited.
• The financial statements are in agreement with the accounting records.
• In our opinion the information given in the Directors' Report is consistent with the financial statements.
Matter on which we are required to report by exception
Directors’ remuneration and transactions
Under the Companies Act 2014 we are required to report to you if, in our opinion, the disclosures of directors' remuneration and
transactions specified by sections 305 to 312 of that Act have not been made. We have no exceptions to report arising from this
responsibility.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Independent Auditors’ Report
(continued)
Independent auditors’ report to the members of Lazard Global
Investment Funds plc (continued)
Responsibilities for the financial statements and the audit
As explained more fully in the Statement of Directors’ Responsibilities set out on page 5, the directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with Irish law and International
Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards
for Auditors.
This report, including the opinions, has been prepared for and only for the company’s members as a body in accordance with section
391 of the Companies Act 2014 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by
our prior consent in writing.
What an audit of financial statements involves
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland). An audit involves obtaining
evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial
statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of:
•
whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and
adequately disclosed;
• the reasonableness of significant accounting estimates made by the directors; and
• the overall presentation of the financial statements.
We primarily focus our work in these areas by assessing the directors’ judgements against available evidence, forming our own
judgements, and evaluating the disclosures in the financial statements.
We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide
a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive
procedures or a combination of both.
In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the
audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent
with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements
or inconsistencies we consider the implications for our report.
Jonathan O’Connell
for and on behalf of PricewaterhouseCoopers
Chartered Accountants and Statutory Audit Firm
Dublin, Ireland
29 June 2016
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Our responsibilities and those of the Directors
25
Financial Statements
Statement of Comprehensive Income
Lazard Emerging
Lazard Emerging Lazard Emerging Markets
Lazard Emerging
Markets Bond Fund Markets Local Debt Fund
Total Return Debt Fund Markets Allocation Fund*
31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015
Note
USD
USD
USD
USD
USD
USD
USD
USD
LAZARD GLOBAL INVESTMENT FUNDS PLC
Investment Income
26
Bond Income
2
947,832
980,000
16,332,604
32,222,614
32,540,920
55,683,521
30,498
54,388
Dividend Income
2
–
–
–
–
–
–
408,873
483,412
–
–
7,998
4,872
23,290
49,790
–
175
(384,540) (44,854,247) (87,876,814) (44,147,196) (287,305,988)
(3,968,617)
(1,829,550)
(5,051,271)
1,624,006
(2,069,557)
2,079,490 (236,623,948)
(1,905,240)
(3,361,132)
(8,482,605) (13,226,593)
(164,529)
(290,960)
Bank Interest
Net realised gains/(losses) on investments and
foreign currency
2
(335,016)
Net movement in unrealised gains/(losses) on
investments and foreign currency
2
201,197
(21,878)
20,405,098
814,013
573,582
(8,108,547) (59,571,786)
Management Fees
(105,438)
(109,518)
(1,866,359)
(3,860,856)
Performance Fees
–
–
–
–
–
(649,837)
–
–
Administration, Transfer Agency and Depositary Fees
(43,131)
(61,760)
(620,698)
(1,097,990)
(1,254,435)
(1,878,044)
(148,999)
(279,742)
Legal Fees
(10,692)
(3,921)
(46,941)
(91,468)
(155,321)
(194,316)
(13,518)
(3,410)
Audit Fees
(13,055)
(12,887)
(15,575)
(13,943)
(15,206)
(16,132)
(5,591)
(12,820)
Total Investment Income/(Expense)
Expenses
13,662,476
3
Directors Fees
Organisational Fees
Currency Manager's Fees
(3,922,458)
(452)
(120)
(6,166)
(4,408)
(18,149)
(8,007)
(972)
(351)
(12,905)
(19,998)
(15,526)
(19,998)
(34,331)
(19,998)
(13,559)
(9,001)
3
Tax Reporting Fees
(342)
(392)
(553)
(1,927)
(347,802)
(508,920)
(3,598)
(5,661)
(57,243)
(45,348)
(72,393)
(67,413)
(127,587)
(126,971)
(42,894)
(43,265)
Dividend Expense
–
–
–
–
–
–
–
–
Other Expenses
(22,085)
(3,049)
(46,979)
1,598
(82,470)
22,933
(28,420)
(16,747)
Total Expenses
(265,343)
(256,993)
(2,691,190)
(5,156,405) (10,517,906) (16,605,885)
(422,080)
(661,957)
Reimbursement from Manager
115,106
89,215
65,448
–
110,761
88,003
Net Investment Income/(Expense)
663,776
(8,438,416) (253,229,833)
(2,216,559)
(3,935,086)
(2,878,664) (14,712,919) (10,714,488)
(67,578)
(56,170)
–
405,804 (10,734,289) (64,728,191)
–
Finance Costs
Distributions
13
–
–
(2,783,485)
Bank Interest
2
(23)
(131)
–
(23)
(131)
(2,783,485)
Total Finance Costs
Profit/(loss) for the financial year before tax
Withholding Tax
663,753
4
Capital gains tax
–
–
–
(817)
–
(2,878,664) (14,712,919) (10,714,488)
(68,395)
(56,170)
405,673 (13,517,774) (67,606,855) (23,151,335) (263,944,321)
(2,284,954)
(3,991,256)
(326)
–
(426,091)
(614,514)
(93,066)
(72,049)
(51,757)
(57,564)
–
–
(101,692)
(541,994)
–
(179,488)
(4,484)
(10,094)
Profit/(loss) for the financial year after tax
663,427
405,673 (14,045,557) (68,763,363) (23,244,401) (264,195,858)
(2,341,195)
(4,058,914)
Net movement in net assets attributable to
holders of redeemable participating shares
from operations
663,427
405,673 (14,045,557) (68,763,363) (23,244,401) (264,195,858)
(2,341,195)
(4,058,914)
Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the Statement
of Comprehensive Income.
The accompanying notes are an integral part of the financial statements.
* Lazard Emerging Markets Allocation Fund was fully redeemed on 10 November 2015.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Financial Statements (continued)
Statement of Comprehensive Income
Lazard
Emerging
Market Debt
Lazard Emerging Markets
Unrestricted
Debt Blend Fund Blend Fund***
Lazard Opportunities
Fund
Lazard Global Hexagon
Equity Fund
31/03/2016
31/03/2015
31/03/2016
31/03/2016
31/03/2015
31/03/2016
31/03/2015
USD
USD
USD
GBP
GBP
USD
USD
Note
Bond Income
2
94,933,083
88,034,157
8,445,762
435,106
619,937
–
–
Dividend Income
2
–
–
–
112,781
242,803
2,330,816
3,073,209
12,672
6,290
–
–
–
–
–
Bank Interest
Net realised gains/(losses) on investments and
foreign currency
2
(216,658,863)
(191,272,507)
(1,988,179)
(3,328,590)
2,431,566
(1,604,893)
(26,433,364)
Net movement in unrealised gains/(losses) on
investments and foreign currency
2
69,552,486
(61,643,150)
24,686,418
2,311,726
(3,268,318)
2,141,486
(3,779,540)
(52,160,622)
(164,875,210)
31,144,001
(468,977)
25,988
2,867,409
(27,139,695)
Management Fees
(11,634,479)
(10,881,893)
(429,086)
(182,967)
(245,837)
(1,047,472)
(1,289,381)
Performance Fees
–
–
–
(38,365)
(25,780)
(373,036)
(105,401)
(2,205,982)
(2,014,299)
(223,746)
(109,669)
(111,214)
(220,951)
(291,818)
Legal Fees
(282,834)
(195,057)
(9,188)
(10,407)
(11,979)
(32,585)
(39,067)
Audit Fees
(15,005)
(15,030)
(10,381)
(8,785)
(8,300)
(15,777)
(12,291)
Total Investment Income/(Expense)
Expenses
3
Administration, Transfer Agency and Depositary Fees
Directors Fees
(38,793)
(26,561)
(566)
(551)
–
(2,516)
(2,335)
Organisational Fees
(10,028)
(10,001)
–
–
–
(12,034)
(12,001)
(168,757)
(149,851)
(22,180)
(4,154)
(22,478)
(52,106)
(70,547)
(131,773)
(84,587)
(29,460)
(27,773)
(7,224)
(43,671)
(38,499)
Currency Manager's Fees
3
Tax Reporting Fees
–
–
–
(1,004)
(690)
(1,105,325)
(1,451,213)
Other Expenses
Dividend Expense
(44,933)
(49,302)
(924)
5,903
(9,692)
(16,079)
(9,780)
Total Expenses
(14,532,584)
(13,426,581)
(725,531)
(377,772)
(443,194)
(2,921,552)
(3,322,333)
–
–
–
3,667
–
20,996
28,161
(66,693,206)
(178,301,791)
30,418,470
(843,082)
(417,206)
(33,147)
(30,433,867)
Reimbursement from Manager
Net Investment Income/(Expense)
Finance Costs
Distributions
13
(979,310)
–
–
–
–
–
–
Bank Interest
2
–
–
(1,785)
(615)
(1,422)
(501,536)
(172,451)
(979,310)
–
(1,785)
(615)
(1,422)
(501,536)
(172,451)
(67,672,516)
(178,301,791)
30,416,685
(843,697)
(418,628)
(534,683)
(30,606,318)
(1,253,954)
(867,153)
(191,998)
(21,357)
(57,577)
(254,895)
(374,515)
(142,797)
(628,405)
(13,685)
–
–
–
(25,934)
Profit/(loss) for the financial year after tax
(69,069,267)
(179,797,349)
30,211,002
(865,054)
(476,205)
(789,578)
(31,006,767)
Net movement in net assets attributable to
holders of redeemable participating shares
from operations
(69,069,267)
(179,797,349)
30,211,002
(865,054)
(476,205)
(789,578)
(31,006,767)
Total Finance Costs
Profit/(loss) for the financial year before tax
Withholding Tax
Capital gains tax
4
Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the Statement
of Comprehensive Income.
The accompanying notes are an integral part of the financial statements.
*** Lazard Emerging Market Debt Unrestricted Blend Fund launched on 8 December 2015.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Investment Income
27
Financial Statements (continued)
Statement of Comprehensive Income
Note
Lazard
European
Alternative Fund**
Lazard
US Fundamental
Alternative Fund****
31/03/2016
31/03/2016
31/03/2016
31/03/2015
EUR
USD
USD
USD
Lazard Global Investment Funds plc Total
LAZARD GLOBAL INVESTMENT FUNDS PLC
Investment Income
28
Bond Income
2
1,367,119
–
155,391,158
177,971,898
Dividend Income
2
462,850
42,413
3,461,689
3,947,189
–
–
43,960
61,127
Bank Interest
Net realised gains/(losses) on investments and
foreign currency
2
1,992,796
(409,546)
(316,770,801)
(591,273,439)
Net movement in unrealised gains/(losses) on
investments and foreign currency
2
821,740
341,156
137,322,334
(81,513,506)
4,644,505
(25,977)
(20,551,660)
(490,806,730)
Management Fees
(715,638)
(11,519)
(24,805,136)
(30,054,649)
Performance Fees
(203,651)
–
(655,143)
(796,707)
Administration, Transfer Agency and Depositary Fees
(136,072)
1,769
(5,030,870)
(5,802,548)
Legal Fees
(3,930)
(18,868)
(589,908)
(546,508)
Audit Fees
(8,130)
(9,303)
(122,048)
(96,454)
Directors Fees
(2,614)
(525)
(71,848)
(41,782)
Organisational Fees
(7,115)
(4,682)
(110,908)
(90,997)
(5,645)
(564)
(608,363)
(773,456)
Tax Reporting Fees
(27,320)
(15,931)
(592,778)
(417,704)
Dividend Expense
(569,911)
(34,334)
(1,769,396)
(1,452,323)
Other Expenses
(8,619)
(4,882)
(247,407)
(69,938)
Total Expenses
(1,688,645)
(98,839)
(34,603,805)
(40,143,067)
–
43,546
361,364
205,379
2,955,860
(81,270)
(54,794,101)
(530,744,418)
(13,649,322)
Total Investment Income/(Expense)
Expenses
Currency Manager's Fees
3
3
Reimbursement from Manager
Net Investment Income/(Expense)
Finance Costs
Distributions
13
–
–
(18,543,292)
Bank Interest
2
(11,037)
(402)
(517,653)
(174,869)
(11,037)
(402)
(19,060,945)
(13,824,191)
2,944,823
(81,672)
(73,855,046)
(544,568,609)
(24,038)
–
(2,330,659)
(2,078,412)
–
–
(262,658)
(1,385,915)
Profit/(loss) for the financial year after tax
2,920,785
(81,672)
(76,448,363)
(548,032,936)
Net movement in net assets attributable to
holders of redeemable participating shares
from operations
2,920,785
(81,672)
(76,448,363)
(548,032,936)
Total Finance Costs
Profit/(loss) for the financial year before tax
Withholding Tax
4
Capital gains tax
Gains and losses arose solely from continuing operations. There were no gains or losses other than those dealt with in the Statement
of Comprehensive Income.
The accompanying notes are an integral part of the financial statements.
The GBP and EUR Funds are translated in the total column at the average exchange rate as disclosed in Note 7.
** Lazard European Alternative Fund launched on 28 September 2015.
**** Lazard US Fundamental Alternative Fund launched on 4 January 2016.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Financial Statements (continued)
Statement of Financial Position
Lazard Emerging
Lazard Emerging Lazard Emerging Markets
Lazard Emerging
Markets Bond Fund Markets Local Debt Fund
Total Return Debt Fund Markets Allocation Fund*
31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015
Note
USD
USD
USD
USD
USD
USD
USD
USD
Financial assets at fair value through profit or loss
2
16,430,956
–
29,797,385
Cash at Bank
Broker Cash held as collateral for financial
derivative instruments
Margin Cash
8
201,944
53,123
2,169,543
13,516,282
5,520,883
64,360,977
64,731
710,568
8
–
–
1,500,000
6,090,000
7,985,000
37,525,000
–
290,000
–
–
–
–
–
–
–
–
Subscriptions Receivable
–
–
–
39,246
1,669,402
899,539
–
–
Investments Sold Receivable
–
–
4,940,353
–
73,121,068
11,164,970
–
301,078
80,229
Investment Income Receivable
15,925,733 249,458,561 225,389,149 616,254,331 945,389,831
250,612
235,670
4,162,327
4,608,197
6,662,310
10,106,223
139
Other Assets
31,770
31,478
–
15,530
4,213
34,331
–
40,201
Total Assets
16,915,282
16,246,004 262,230,784 249,658,404 711,217,207 1,069,480,871
64,870
31,219,461
Liabilities
Financial liabilities at fair value through profit or loss: 2
Broker Cash due to counterparties for financial
8
derivative instruments
Margin Cash
Redemptions Payable
Investments Purchased Payable
(439)
(6,704)
(2,302,672)
–
–
–
–
–
–
–
–
–
–
(10,167)
– (77,992,742)
(8,117,246)
–
(30,400)
(2,255,489)
(64,870)
(145,232)
(1,487,715) (93,905,339) (28,379,970)
(64,870)
(445,767)
16,191,201 254,584,827 248,170,689 617,311,868 1,041,100,901
–
30,773,694
–
–
(4,926,031)
Expenses Payable
(60,215)
(48,099)
(417,254)
Total Liabilities
(60,654)
(54,803)
(7,645,957)
Net Asset attributable to redeemable
participating shareholders
16,854,628
(981,590) (10,241,361) (16,811,190)
–
(495,958)
–
(233,368)
–
–
–
–
–
–
–
(4,722,170)
(1,196,045)
–
(36,767)
–
(949,066)
The accompanying notes are an integral part of the financial statements.
* Lazard Emerging Markets Allocation Fund was fully redeemed on 10 November 2015.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Assets
29
Financial Statements (continued)
Statement of Financial Position
Lazard
Emerging
Market Debt
Lazard Emerging Markets
Unrestricted
Debt Blend Fund Blend Fund***
Lazard Opportunities
Fund
Lazard Global Hexagon
Equity Fund
31/03/2016
31/03/2015
31/03/2016
31/03/2016
31/03/2015
31/03/2016
31/03/2015
USD
USD
USD
GBP
GBP
USD
USD
Note
LAZARD GLOBAL INVESTMENT FUNDS PLC
Assets
30
Financial assets at fair value through profit or loss
2
1,297,009,854
1,610,345,055
463,749,861
16,524,955
34,198,005
60,603,099
155,133,475
Cash at Bank
Broker Cash held as collateral for financial
derivative instruments
Margin Cash
8
6,281,514
13,024,722
4,289,791
781,893
3,170,572
11,173,473
2,136,352
8
3,040,000
–
–
–
1,109,465
–
196,564
–
–
–
842,223
–
–
–
387,507
4,961,910
11,088,176
3,371,503
–
–
–
Subscriptions Receivable
Investments Sold Receivable
Investment Income Receivable
596,824
4,130,716
570,664
440,201
250,778
30,873
110,825
18,225,505
23,131,507
6,599,528
121,658
233,187
104,485
441,149
Other Assets
109,135
27,686
15,067
23,832
125
64,022
43,165
Total Assets
1,325,650,339
1,655,621,596
486,313,087
22,106,265
38,962,132
71,975,952
158,061,530
(1,723,134)
(3,008,497)
(796,263)
(136,300)
(3,193,420)
(3,359,119)
(9,205,226)
–
–
–
–
–
–
(43,965)
Liabilities
Financial liabilities at fair value through profit or loss: 2
Broker Cash due to counterparties for financial
8
derivative instruments
Margin Cash
Redemptions Payable
–
–
–
–
–
(198,549)
–
(609,143)
(800,605)
(26,935)
(3,371,503)
(1,131,842)
(325,506)
(30,348)
(4,880,806)
Investments Purchased Payable
(1,248,246)
–
(7,401,846)
(1,224,843)
(189,086)
(2,272,921)
Expenses Payable
(1,574,214)
(2,396,943)
(346,596)
(72,071)
(103,153)
(159,422)
(409,989)
Total Liabilities
(5,154,737)
(6,206,045)
(8,571,640)
(4,804,717)
(4,617,501)
(6,315,517)
(14,570,334)
1,320,495,602
1,649,415,551
477,741,447
17,301,548
34,344,631
65,660,435
143,491,196
Net Asset attributable to redeemable
participating shareholders
The accompanying notes are an integral part of the financial statements.
*** Lazard Emerging Market Debt Unrestricted Blend Fund launched on 8 December 2015.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Financial Statements (continued)
Statement of Financial Position
Note
Lazard
European
Alternative Fund**
Lazard
US Fundamental
Alternative Fund****
31/03/2016
31/03/2016
31/03/2016
31/03/2015
EUR
USD
USD
USD
Lazard Global Investment Funds plc Total
Financial assets at fair value through profit or loss
2
245,278,298
12,345,826
3,019,110,810
3,023,740,316
Cash at Bank
Broker Cash held as collateral for financial
derivative instruments
Margin Cash
8
36,008,785
1,551,129
73,410,651
98,508,737
45,748,565
8
Subscriptions Receivable
Investments Sold Receivable
–
–
12,525,000
6,736,125
750,000
9,636,682
–
8,385,603
–
27,546,764
5,900,695
312,169
1,357,868
81,606,083
16,079,869
2,480,403
13,161
39,019,470
38,949,141
Other Assets
240,285
152,911
685,189
192,577
Total Assets
299,441,668
16,170,895
3,263,540,649
3,229,119,900
(3,333,078)
(655,515)
(23,072,618)
(34,987,207)
–
–
–
(43,965)
(1,517,067)
(465,397)
(2,392,720)
–
(157,720)
–
(10,709,345)
(3,754,151)
(6,871,991)
(28,520)
(103,461,754)
(13,309,150)
(329,497)
(113,511)
(4,164,214)
(5,904,841)
Total Liabilities
(12,209,353)
(1,262,943)
(143,800,651)
(57,999,314)
Net Asset attributable to redeemable
participating shareholders
287,232,315
14,907,952
3,119,739,998
3,171,120,586
Investment Income Receivable
Liabilities
Financial liabilities at fair value through profit or loss: 2
Broker Cash due to counterparties for financial
8
derivative instruments
Margin Cash
Redemptions Payable
Investments Purchased Payable
Expenses Payable
The accompanying notes are an integral part of the financial statements.
The GBP and EUR Funds are translated in the total column at the year end exchange rate as disclosed in Note 7.
** Lazard European Alternative Fund launched on 28 September 2015.
**** Lazard US Fundamental Alternative Fund launched on 4 January 2016.
On behalf of the Board of Directors
Director: Daniel Morrissey
Lazard Global Investment Funds plc
Director: John Donohoe
Date: 29 June 2016
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Assets
31
Financial Statements (continued)
Statement of Changes in Net Assets attributable to Redeemable
Participating Shareholders
Lazard Emerging
Markets Bond Fund
LAZARD GLOBAL INVESTMENT FUNDS PLC
Note
32
Net assets attributable to redeemable
participating shareholders at beginning
of year
Lazard Emerging Lazard Emerging Markets
Markets Local Debt Fund
Total Return Debt Fund
Lazard Emerging
Markets Allocation Fund*
31/03/2016
31/03/2015
31/03/2016
31/03/2015
31/03/2016
31/03/2015
31/03/2016
31/03/2015
USD
USD
USD
USD
USD
USD
USD
USD
16,191,201
16,785,528
248,170,689
470,976,589 1,041,100,901 1,266,540,880
30,773,694
25,547,333
114,506,995
219,538,164
525,701,193
577,498
10,276,263
(94,121,140) (374,673,347) (481,806,135) (486,945,314)
(29,009,997)
(990,988)
–
–
–
(23,244,401) (264,195,858)
(2,341,195)
(4,058,914)
–
–
–
617,311,868 1,041,100,901
–
30,773,694
Proceeds from redeemable particpating
shares issues
5
–
–
Payments for redeemable participating
shares redeemed
5
–
(1,000,000)
Anti-Dilution Levy
2
–
–
73,840
1,092,646
663,427
405,673
(14,045,557)
(68,763,363)
–
–
–
–
16,854,628
16,191,201
254,584,827
248,170,689
Net movement in net asset attributable to
holders of redeemable participating shares
from operations
Foreign currency translation adjustment
Net assets attributable to redeemable
participating shareholders at end of year
81,060,450
201,053
–
The accompanying notes are an integral part of the financial statements.
* Lazard Emerging Markets Allocation Fund was fully redeemed on 10 November 2015.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Financial Statements (continued)
Statement of Changes in Net Assets attributable to Redeemable
Participating Shareholders
Lazard Global Hexagon
Equity Fund
31/03/2016
31/03/2015
31/03/2016
31/03/2016
31/03/2015
31/03/2016
31/03/2015
USD
USD
USD
GBP
GBP
USD
USD
1,649,415,551
853,886,743
–
34,344,631
36,385,431
143,491,196
95,665,044
Note
Net assets attributable to redeemable
participating shareholders at beginning
of year
Lazard Opportunities
Fund
Proceeds from redeemable particpating
shares issues
5
634,213,016
1,400,893,967
673,662,731
3,371,503
20,055,840
13,011,389
105,110,581
Payments for redeemable participating
shares redeemed
5
(894,063,698)
(426,490,659)
(226,132,286)
(19,549,532)
(21,620,435)
(90,052,572)
(26,277,662)
Anti-Dilution Levy
2
–
922,849
–
–
–
–
–
(69,069,267)
(179,797,349)
30,211,002
(865,054)
(476,205)
(789,578)
(31,006,767)
–
–
–
–
–
–
–
1,320,495,602
1,649,415,551
477,741,447
17,301,548
34,344,631
65,660,435
143,491,196
Net movement in net asset attributable to
holders of redeemable participating shares
from operations
Foreign currency translation adjustment
Net assets attributable to redeemable
participating shareholders at end of year
The accompanying notes are an integral part of the financial statements.
*** Lazard Emerging Market Debt Unrestricted Blend Fund launched on 8 December 2015.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Lazard Emerging Markets
Debt Blend Fund
Lazard
Emerging
Market Debt
Unrestricted
Blend Fund***
33
Financial Statements (continued)
Statement of Changes in Net Assets attributable to Redeemable
Participating Shareholders
Lazard
European
Alternative Fund**
Lazard
US Fundamental
Alternative Fund****
31/03/2016
31/03/2016
31/03/2016
31/03/2015
EUR
USD
USD
USD
–
–
3,171,120,586
2,785,292,258
LAZARD GLOBAL INVESTMENT FUNDS PLC
Note
34
Net assets attributable to redeemable
participating shareholders at beginning
of year
Lazard Global Investment Funds plc Total
Proceeds from redeemable particpating
shares issues
5
312,339,178
14,993,964
1,890,068,882
2,294,270,591
Payments for redeemable participating
shares redeemed
5
(28,027,648)
(4,340)
(1,875,445,436)
(1,356,032,243)
Anti-Dilution Levy
2
–
–
274,893
2,015,495
2,920,785
(81,672)
(76,448,363)
(548,032,936)
–
–
10,169,436
(6,392,579)
287,232,315
14,907,952
3,119,739,998
3,171,120,586
Net movement in net asset attributable to
holders of redeemable participating shares
from operations
Foreign currency translation adjustment
Net assets attributable to redeemable
participating shareholders at end of year
The accompanying notes are an integral part of the financial statements.
The GBP and EUR Funds are translated in the total column at the average exchange rate as disclosed in Note 7.
** Lazard European Alternative Fund launched on 28 September 2015.
**** Lazard US Fundamental Alternative Fund launched on 4 January 2016.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements
1. General
The Company currently has nine Funds in existence. As at 31 March 2016, Lazard Emerging Markets Bond Fund, Lazard Emerging
Markets Local Debt Fund, Lazard Emerging Markets Total Return Debt Fund, Lazard Emerging Markets Debt Blend Fund,
Lazard Emerging Market Debt Unrestricted Blend Fund (launched 8 December 2015), Lazard Opportunities Fund, Lazard Global
Hexagon Equity Fund, Lazard European Alternative Fund (launched 28 September 2015) and Lazard US Fundamental Alternative
Fund (launched 4 January 2016) were funded. The investment objectives of each Fund within the Company are set out in the
Prospectus and relevant supplements for the Funds.
2. Significant Accounting Policies
The significant accounting policies and estimation techniques adopted by the Company in the preparation of the financial statements
are set out below. All references to net assets throughout the financial statements refer to net assets attributable to holders of
Redeemable Participating Shares unless otherwise stated.
Statement of compliance
The financial statements for the financial year ended 31 March 2016 have been prepared in accordance with FRS 102 and Irish statute
comprising the Irish Companies Act 2014 and the UCITS Regulations.
Effective 1 April 2015, the Company transitioned to FRS 102 as discussed below.
Basis of preparation
The financial statements are prepared under the historical cost convention as modified by the revaluation of financial assets and
financial liabilities held at fair value through profit or loss.
The financial statements have been prepared on a going concern basis and in accordance with accounting standards generally accepted
in Ireland and the provisions of the Irish Companies Act, 2014 and the UCITS Regulations. Accounting standards generally accepted
in Ireland in preparing financial statements giving a true and fair view are those accounting standards issued by the Financial Reporting
Council and promulgated by the Institute of Chartered Accountants in Ireland (Generally Accepted Accounting Practice in Ireland).
The financial statements of Lazard Emerging Markets Allocation Fund have not been prepared on a going concern basis of accounting
as this Fund was fully redeemed during the financial year ended 31 March 2016.
The Company has availed of the exemption available to open-ended investment funds under FRS 102, Section 7 “Statement of
Cash Flows” not to prepare a cash flow statement on the basis that substantially all of the Company’s investments are highly liquid
and carried at fair value, and the Company provides a statement of changes in net assets attributable to redeemable participating
shareholders.
Transition to FRS 102
The Directors of the Company have adopted the accounting standards generally accepted in Ireland, including FRS 102, for its annual
financial statements effective 1 April 2015. Accordingly, these are the Company’s first annual financial statements which have been
prepared in accordance with FRS 102. Other than those listed below, the Company has consistently applied the accounting policies
used in the preparation of its opening FRS 102 Statement of Financial Position at 1 April 2015 throughout all periods presented, as
if these policies had always been in effect.
This note discloses the impact of transition to FRS 102 on the Company’s reported financial position and financial performance,
including the nature and effect of significant changes in accounting policies from those used in the Company’s financial statements
for the year ended 31 March 2015 prepared under previous Irish GAAP.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Lazard Global Investment Funds plc (the “Company”) was incorporated on 3 February 2009 as an open-ended investment company
with variable capital, with segregated liability between its Funds and structured as an umbrella fund organised under the laws of
Ireland. The Company qualifies and is authorised in Ireland by the Central Bank of Ireland (the “Central Bank”) as an Undertaking
for Collective Investment in Transferable Securities under the European Communities (Undertakings for Collective Investment
in Transferable Securities) Regulations, 2011 (as amended), (the "UCITS Regulations") and the Central Bank’s (Supervision and
Enforcement) Act 2013 (section 48(1)) UCITS Regulations 2015, (the "Central Bank UCITS Regulations"). The Company is
structured as an umbrella fund in that the share capital of the Company may be divided into different classes of Shares with one or
more classes representing a separate Fund of the Company.
35
Notes to the Financial Statements (continued)
2. Significant Accounting Policies (continued)
Valuation of Financial Instruments at Fair Value through Profit or Loss
LAZARD GLOBAL INVESTMENT FUNDS PLC
Under FRS 102, in accounting for all of its financial instruments, an entity is required to apply either (a) the full requirements of
Sections 11 “Basic Financial Instruments” and Section 12 “Other Financial Instruments Issues” of FRS 102, (b) the recognition and
measurement provisions of International Accounting Standards 39 “Financial Instruments: Recognition and Measurement” (“IAS 39”)
as adopted for use in the European Union and the disclosure requirements of Sections 11 and 12 of FRS 102, or (c) the recognition
and measurement provisions of International Financial Reporting Standards 9 “Financial Instruments” and the disclosure requirements
of Sections 11 and 12 of FRS 102. The Company has elected to apply the recognition and measurement provisions of IAS 39 and the
disclosure requirements of Sections 11 and 12 of FRS 102.
36
As a result of the above, the Company changed its fair valuation input to utilise mid market price for both financial assets and financial
liabilities; the use of mid market price for the valuation of financial assets and financial liabilities is allowed under FRS 102, provided
it is within the bid ask spread.
Where the mid price is not within the bid ask spread, management will determine the point within the bid ask spread which is most
representative of fair value. Under previous Irish GAAP the accrued market price used for financial assets held by the Company was
the current bid price, the quoted market price for financial liabilities was the current ask price. The Company’s prior year end Statement
of Financial Position, as at 31 March 2015, has been restated within these Financial Statements to recognise the fair value of the
Company’s financial assets at fair value through profit or loss using mid market prices. The Company’s Statement of Comprehensive
Income for the year ended 31 March 2015 has also been restated to reflect the use of mid market prices.
The following tables summarise the respective restatements reflected on the Statement of Financial Position as of 31 March 2015 and
the Statement of Comprehensive Income for the year ended 31 March 2015.
Statement of Financial Position
Financial assets at fair value through profit or loss (at bid market prices)
Adjustment from bid market prices to mid market prices
Financial assets at fair value through profit or loss (at mid market prices)
Statement of Comprehensive Income
Net gain (loss) on investment activities (at bid market prices)
Movement in adjustment from bid market prices to mid market prices
Net gain (loss) on investment activities (at mid market prices)
As at
31 March 2015
USD
3,016,099,737
7,640,579
3,023,740,316
For the year ended
31 March 2015
USD
(675,551,246)
2,764,301
(672,786,945)
Foreign Exchange Translation
(a) Functional and presentation currency: Items included in the Company’s financial statements are measured using the currency of the
primary economic environment in which it operates (the “functional currency”). This is USD except for Lazard Opportunities Fund
which is GBP and Lazard European Alternative Fund which is EUR. The Company has adopted the functional currency of each Fund
as the presentation currency for these financial statements. The functional currency has been adopted as the presentation currency at
Fund level and at Company level, USD is the presentational currency.
For the purpose of combining the financial statements of each Fund to arrive at the consolidated figures, the financial assets and
financial liabilities in the financial statements have been translated to USD at the exchange rate at 31 March 2016. The amounts in
the Statement of Comprehensive Income and in the Statement of Changes in Net Assets attributable to Redeemable Participating
Shareholders have been translated to USD using an average rate for the year as an approximation for actual. This has no effect on the
net asset value per share attributable to the individual Fund. All exchange rates are disclosed in Note 7.
The foreign currency translation adjustment of USD 10,169,436 (2015: (USD 6,392,579)) included in the “Statement of Changes
in Net Assets attributable to Redeemable Participating Shareholders” reflects the movement in exchange rates for the year. This is a
notional amount which has no impact on the results of the individual Funds.
(b) Assets and liabilities other than those denominated in the functional currency of each Fund are translated into the functional
currency at the exchange rate ruling at the year end. Transactions in foreign currencies are translated into the functional currency at
the exchange rates ruling at the dates of the transactions. The resulting gain or loss arising on translation of securities and other assets
and liabilities is included in net movement in unrealised gains and losses on investments/currency. Forward currency contracts which
are outstanding at the year end are valued at year end forward rates. The resulting unrealised gain or loss is included in net movement
in unrealised gains and losses on investments/currency. Realised gains and losses arising between the transaction and settlement dates
on purchases or sales of securities denominated in the non-base currencies and on settled forward currency contracts are included in
net realised gains and losses on investments/currency.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
2. Significant Accounting Policies (continued)
Accounting estimates and judgements
The preparation of the financial statements, in accordance with accounting standards generally accepted in Ireland, requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the year. Actual
results could differ from those estimates.
The Company’s management has made an assessment of the Company’s ability to continue as a going concern and is satisfied that
the Company has the resources to continue in business for the foreseeable future. Furthermore, the management is not aware of any
material uncertainties that may cast significant doubt upon the Company’s ability to continue as a going concern. Therefore, the
financial statements continue to be prepared on a going concern basis.
The financial statements of Lazard Emerging Markets Allocation Fund have not been prepared on a going concern basis of accounting
as this Fund was fully redeemed during the financial year ended 31 March 2016.
Financial instruments
(i) Classification
The Company classifies its financial instruments as financial assets or financial liabilities at fair value through profit or loss. These
financial assets and financial liabilities are classified as held for trading or designated by the Directors at fair value through profit or
loss at inception. Financial assets and financial liabilities designated at fair value through profit or loss at inception are those that are
managed and their performance evaluated on a fair value basis in accordance with the Company’s documented investment strategy.
The Company’s policy is for the Investment Manager and the Directors to evaluate the information about these financial assets and
liabilities on a fair value basis together with other related financial information.
(ii) Recognition and Derecognition
Regular-way purchases and sales of investments are recognised on trade date – the date on which the Company commits to purchase or
sell the asset. Investments are initially recognised at fair value, and transaction costs for all financial assets carried at fair value through
profit or loss are expensed immediately. Investments are derecognised when the rights to receive cash flows from the investments have
expired or the Company has transferred substantially all risks and rewards of ownership.
(iii) Measurement
Financial assets and financial liabilities at fair value through profit or loss are initially recognised at fair value. Subsequent to initial
recognition, all financial assets and financial liabilities at fair value through profit or loss are measured at fair value. Gains and losses
arising from changes in the fair value of the financial assets or financial liabilities at fair value through profit or loss category are
presented in the Statement of Comprehensive Income in the year in which they arise.
(iv) Fair Value Estimation
Securities listed on a recognised stock exchange or traded on any other organised market are valued at the current mid price on the
stock exchange or market which constitutes the principal market for such securities. If for specific assets the current mid price does not,
in the opinion of the Directors, reflect their fair value or are not available, the price of the most recent transaction provides evidence
of the current fair value as long as there has not been a significant change in economic circumstances since the time of the transaction.
The fair value of financial instruments that are not traded in an active market is determined by using valuation techniques. The
Company uses a variety of methods and makes assumptions that are based on market conditions existing at each Statement of Financial
Position date. Valuation techniques used include the use of comparable recent arm’s length transactions, discounted cash flow analysis,
option pricing models and other valuation techniques commonly used by market participants. Unlisted securities and thinly traded
securities are valued in good faith by the Directors based on quotations received from third parties including relevant brokers, however
no securities were valued in this manner as at 31 March 2016 and 31 March 2015.
Investments in open-ended collective investment schemes are valued at fair value at the latest available unaudited Net Asset Value for
the shares or units obtained from the relevant Administrator. The change in the daily Net Asset Value of these shares is recognised as
net gain/(loss) on investments and foreign currency in the Statement of Comprehensive Income.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Going concern
37
Notes to the Financial Statements (continued)
2. Significant Accounting Policies (continued)
Financial instruments (continued)
(iv) Fair Value Estimation (continued)
Each of the Funds may employ investment techniques and financial derivative instruments for efficient portfolio management and/
or investment purposes subject to the conditions and within the limits laid down by the Prospectus and the Central Bank and these
are as follows:
LAZARD GLOBAL INVESTMENT FUNDS PLC
Futures Contracts
38
Initial margin deposits are made upon entering into futures contracts and are generally made in cash or cash equivalents. The fair value
of futures contracts is based upon their current quoted daily settlement prices on the relevant exchange as of the Statement of Financial
Position date. Changes in the value of open futures contracts are recognised as unrealised gains or losses on futures contracts until the
contracts are terminated, at which time realised gains and losses are recognised. For each relevant Fund, gains or losses on open futures
contracts are shown in the Portfolio of Investments of each relevant Fund and as appropriate, on the Statement of Financial Position
as financial assets or liabilities at fair value through profit or loss.
Forward foreign currency exchange contracts
The unrealised appreciation or depreciation on open forward foreign exchange contracts is calculated by reference to the difference
between the contracted rate and the forward rate to close out the contract as at the year end. Unrealised appreciation or depreciation
on forward contracts is reported in the Statement of Financial Position and the Statement of Comprehensive Income. Realised gains
and losses are reported with all other foreign currency gains and losses in the Statement of Comprehensive Income.
Contracts for Difference
Open Contracts for Difference (“CFDs”) are carried at the net amount due to/from the counterparty under the terms of the agreement,
including unrealised gains and losses from changes in fair value of the notional equities, and are recorded as derivative assets/liabilities
at fair value on the Statement of Financial Position. Realised and unrealised gains and losses are recognised in the Statement of
Comprehensive Income. When the Funds hold long CFDs they receive the dividends relating to the underlying equity and pays
interest to the third party. When the CFDs are sold short, the Funds pay the dividends relating to the underlying equity and receive
interest on the contract value. The contracts are valued based on the market value of the underlying security.
Options
The premium on purchased put options exercised is subtracted from the proceeds of the sale of the underlying security or foreign
currency in determining the realised gain or loss. The premium on purchased call options exercised is included in determining initial fair
value of the securities or foreign currency purchased. Premiums paid from the purchase of options which expire unexercised are treated
as realised losses. The premium on written call options exercised is added to the proceeds from the sale of the underlying security or
foreign currency in determining the realised gain or loss. The premium on written put options exercised is included in determining
initial fair value of securities or foreign currencies purchased. Premiums received from written options which expire unexercised are
treated as realised gains. The over-the-counter options (“OTC”) are valued at close of business daily at the price provided by the
counterparty and this valuation is then validated by a Bloomberg valuation and a valuation sourced from the Investment Manager.
Should no counterparty valuation be received, then the Bloomberg valuation would apply, (provided it is in line with the Investment
Manager). Exchange traded options are valued at settlement price.
Credit default swaps
Credit default swaps involve, to varying degrees, elements of credit and counterparty risk in excess of the amount recognised in the
Statement of Financial Position. Valuation of the credit default swap is an estimate of a credit default event happening at a particular
point in time. Notional principal amounts are used to express the extent of involvement in these transactions, but the amounts
potentially subject to credit risk are much smaller. The fair values of credit default swaps are calculated using standard net present value
methodologies whereby all future cashflows of the fixed side of the swap are discounted to their present value using the appropriate
interest rate and whereby all future cashflows of the default side of the swap are discounted to their present value based on the cost
of default to the default payer. This cost is determined by the recovery rate, notional amount of the contract, and default probability
among other factors.
The credit default contracts are marked-to-market daily based upon quotations from the counterparty, (the primary source), and the
change, if any, is recorded as an unrealised gain or loss. The counterparty prices are validated by a Bloomberg valuation, (independent
of the counterparty inputs), and a valuation is sourced from the Investment Manager. If a counterparty valuation has not been received
or is incorrect, then the Bloomberg valuation is applied (provided it is in line with the Investment Manager). Payments received or
made as a result of a credit event or termination of the contract are recognised, net of a proportional amount of the upfront payment,
as realised gains or losses.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
2. Significant Accounting Policies (continued)
Financial instruments (continued)
(iv) Fair Value Estimation (continued)
The fair value of interest rate swaps is calculated using standard net present value methodologies whereby all future cash flows of the
interest rate swaps are discounted to their present value using the appropriate interest rate. Interest rate swap contracts are marked-tomarket daily based upon quotations from the counterparty, (the primary source), and the change, if any, is recorded as an unrealised
gain or loss. The counterparty prices are validated by a Bloomberg valuation, (independent of counterparty inputs), and a valuation is
sourced from the Investment Manager. If a counterparty valuation has not been received or is incorrect, then the Bloomberg valuation
is applied (provided it is in line with the Investment Manager). Payments received or made are recorded as realised gains or losses.
Total return swaps
A total return swap is an agreement in which one party makes payments based on a set rate, either fixed or variable, while the other
party makes payments based on the return of an underlying asset. The total return swap may be applied to any underlying asset but is
most commonly used with equity indices, single stocks, bonds and defined portfolios of loans and mortgages. The fair value of the swap
is reported as an asset or liability as appropriate on the Statement of Financial Position and movements in the fair value are recorded
in the Statement of Comprehensive Income as part of net gain/(loss) on financial assets and financial liabilities at fair value through
profit or loss and foreign currencies.
The fair value of the total return swap that is held on Lazard Opportunities Fund is based on a valuation received from the counterparty.
This valuation is based on the gain or loss of all the underlying securities, mostly convertible bonds and common stocks. The gain/
loss of these securities make up the overall fair value on the swap. Post the year end, the underlying securities in the total return swap
will be priced based on market prices which make up the overall fair value of the swap, this valuation is subsequently compared to
the counterparty prices as part of an overall reconciliation to the counterparty position which is shared with the Investment Manager.
Realised and unrealised gains and losses on investments
Realised gains and losses are calculated based on a FIFO basis. Realised and unrealised gains and losses arising from changes in
the fair value of financial assets and financial liabilities at fair value through profit or loss category are included in the Statement of
Comprehensive Income in the year in which they arise.
Interest income and expense
Interest income and expense are recognised in the Statement of Comprehensive Income for all debt instruments using the effective
interest method. The effective interest method is a method of calculating the amortised cost of a financial asset or financial liability
and of allocating the interest income or interest expense over the relevant year. Bond interest income is reported gross of irrecoverable
withholding tax, which is disclosed separately in the Statement of Comprehensive Income, and net of any tax credits.
The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts throughout the expected life of
the financial instrument, or a shorter period where appropriate, to the net carrying amount of the financial asset or financial liability.
Dividend income
Dividend income is recognised through profit and loss on an ex-dividend basis. Dividend income is shown gross of any non-recoverable
withholding taxes, which are disclosed separately in the Statement of Comprehensive Income.
Expenses
Expenses are accounted for on an accruals basis.
Offsetting financial instruments
Financial assets and financial liabilities are offset and the net amount reported in the Statement of Financial Position where there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle
the liability simultaneously.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Interest rate swaps
39
Notes to the Financial Statements (continued)
2. Significant Accounting Policies (continued)
Distributions
Distributions, if declared, will only be paid out of a Fund’s net investment income return.
LAZARD GLOBAL INVESTMENT FUNDS PLC
Distributions with an ex date during the financial year are included as a finance cost in the Statement of Comprehensive Income.
Dividends will not be paid in respect of any class of share which is an accumulating class. Income and profits, if any, attributable to
an accumulating share class will be accumulated, reinvested in the relevant Fund on behalf of the Shareholders of that class and will
be reflected in the Net Asset Value of the relevant accumulating share class. Please see Note 13 for details of any distributions paid
during the year ended 31 March 2016.
40
Equalisation
Income equalisation arrangements apply to each Fund. The arrangements are intended to ensure that the income per Share which is
distributed in respect of the distribution period is not affected by changes in the number of Shares in issue during the period. The
arrangements have no effect on the Net Asset Value of any Share Class. The calculation of equalisation is based on total accumulated
undistributed net income.
Anti-Dilution Levy
The anti-dilution levy is paid to the Funds and is used to defray the cost related to the associated purchase or sale of securities within
the Funds as a result of shareholder transactions. Anti-dilution levies are included in the movement in net assets resulting from share
transactions in the Statement of Changes in Net Assets attributable to Redeemable Participating Shareholders.
Transaction costs
Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial
liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the financial
instrument. When a financial asset or financial liability is recognised initially, an entity shall measure it at its fair value through profit or
loss plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction
costs on the purchase and sale of fixed income securities, money market instruments, forward foreign exchange currency contracts and
swaps are included in the purchase and sale price of the investment and are not separately identifiable. Transaction costs on purchases
and sales of equities, futures contracts, options contracts and collective investment schemes are included in net gains/(losses) on financial
instruments at fair value through profit or loss in the Statement of Comprehensive Income for each Fund.
Depositary transaction costs include transaction costs paid to the depositary and the sub-custodian. Purchases and sales transaction
costs include identifiable brokerage charges, commissions, transaction related taxes and other market charges. Depositary transaction
costs are included in depositary fees as disclosed in Note 3. These costs are separately identifiable transaction costs and the total costs
incurred by each Fund during the year are disclosed in Note 3.
3. Fees
Management Fees
The Manager has responsibility for the management and administration of the Company’s affairs and the distribution of the Shares,
subject to the overall supervision and control of the Directors.
The Manager is entitled to a charge per annum of the Net Asset Value attributable respectively to each of the following Share classes.
AUD Hedged Management Class
EURO Hedged Institutional Accumulating Class
Lazard
Emerging
Markets
Bond
Fund %
-
Lazard
Lazard
Lazard
Emerging
Lazard Emerging
Markets
Emerging Markets
Lazard Emerging
Debt
Markets
Total Emerging Markets
Lazard
Debt Unrestricted
Local
Return Markets
Blend
Blend Opportunities
Debt
Debt Allocation
Fund %
Fund %
Fund % Fund %
Fund % Fund %
-
Lazard
Global
Lazard Lazard US
Hexagon European Fundamental
Equity Alternative Alternative
Fund %
Fund %
Fund %
-
0.65
0.75
0.75
-
0.80
-
1.50
-
-
-
EURO Hedged Institutional Accumulating B Class
EURO Hedged Institutional Accumulating EA Class
-
-
1.75
-
-
-
-
-
-
-
-
-
-
-
-
-
0.50
1.00
-
0.50
EURO Hedged Institutional Accumulating L Class
-
-
-
-
-
-
-
0.50
-
-
EURO Hedged Institutional Distributing Class
-
-
0.75
-
-
-
-
-
-
-
EURO Hedged Institutional Distributing B Class
-
-
1.75
-
-
-
-
-
-
-
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
3. Fees (continued)
Management Fees (continued)
Lazard
Global
Lazard Lazard US
Hexagon European Fundamental
Equity Alternative Alternative
Fund %
Fund %
Fund %
-
EURO Hedged Accumulating X Class
-
-
-
-
-
-
-
-
-
-
EURO Institutional Accumulating Class
-
-
-
-
-
-
-
-
1.00
-
EURO Institutional Accumulating EA Class
-
-
-
-
-
-
-
-
0.75
-
EURO Institutional Accumulating K Class
-
-
-
-
0.50
0.40
-
-
-
-
EURO Institutional Accumulating LP Class
-
-
-
-
-
-
-
-
1.25
-
EURO Institutional Distributing K Class
-
-
-
-
0.50
-
-
-
-
-
EURO Institutional Distributing LP Class
-
-
-
-
-
-
-
-
1.25
-
EURO Retail Distributing P Class
-
-
-
-
-
-
-
-
2.50
-
CHF Hedged Institutional Accumulating Class
-
-
0.75
-
0.80
0.80
-
-
-
-
CHF Hedged Institutional Accumulating L Class
-
-
-
-
-
-
-
0.50
-
-
GBP Hedged Institutional Accumulating Class
-
-
0.75
-
-
-
-
-
-
-
GBP Hedged Institutional Distributing Class
-
0.75
-
1.00
-
-
-
-
-
-
GBP Hedged Institutional Accumulating EA Class
-
-
-
-
-
-
0.50
1.00
-
-
GBP Hedged Retail Accumulating Class
-
-
1.25
-
-
-
-
-
-
-
GBP Hedged Retail Distributing C Class
-
-
-
0.75
-
-
-
-
-
-
GBP Institutional Accumulating Class
-
-
-
-
-
0.80
1.50
-
-
-
GBP Institutional Accumulating K Class
-
-
-
-
-
0.40
-
-
-
-
USD Hedged Institutional Accumulating Class
-
-
-
-
-
-
1.50
-
1.00
-
USD Hedged Institutional Accumulating EA Class
-
-
-
-
-
-
0.50
-
0.75
-
USD Hedged Institutional Accumulating LP Class
-
-
-
-
-
-
-
-
1.25
-
0.65
0.75
0.75
1.00
0.80
0.80
-
1.50
-
0.75
USD Institutional Accumulating B Class
-
-
1.75
-
-
-
-
-
-
-
USD Institutional Accumulating EA Class
-
-
-
-
-
-
-
1.00
-
0.50
USD Institutional Accumulating L Class
-
-
-
-
-
-
-
0.50
-
-
USD Institutional Distributing Class
-
0.75
-
1.00
-
-
-
-
-
-
USD Retail Accumulating Class
-
-
1.25
-
-
-
-
-
-
-
USD X Class
-
-
-
-
-
-
-
-
-
-
USD Accumulating X Class
-
-
-
-
-
-
-
-
-
-
USD Management Class
-
-
-
-
-
-
-
-
-
-
USD Hedged Management Class
-
-
-
-
-
-
-
-
-
-
YEN Hedged Institutional Accumulating Class
-
-
0.75
-
-
-
1.50
-
-
-
USD Institutional Accumulating Class
See Note 14 for information on the launch and termination dates of the above share classes.
Investors are only permitted to hold units in the X share class where Lazard or an Affiliate are appointed as the Investment Manager to
carry out investment management or advisory services on their behalf. Shareholders in the class will be subject to a fee with regard to their
investment in the Fund based on the Investment Management Agreement between themselves and the Investment Manager or a Lazard
Affiliate. Shares in the USD Management Class , USD Hedged Management Class and AUD Hedged Management Class are available
only to other Funds managed or advised by a Lazard Affiliate or to such other persons as the Manager may determine from time to time.
The Manager has delegated the performance of the investment management function in respect of the Funds to the Investment
Manager. The Manager will be responsible for discharging the fees and expenses of the Investment Manager, the Promoter and
the Distributor out of its fee. For the year ended 31 March 2016, management fees of USD 24,805,136 (31 March 2015: USD
30,054,649) were charged of which USD 1,880,464 (31 March 2015: USD 4,538,453) remained payable at the year end.
Performance Fees
The Manager is entitled to receive a performance fee in respect of Lazard Emerging Markets Total Return Debt Fund, Lazard
Opportunities Fund, Lazard Global Hexagon Equity Fund, Lazard European Alternative Fund and Lazard US Fundamental
Alternative Fund. Below is a description of how this fee is calculated for each Fund.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
EURO Hedged Retail Accumulating Class
Lazard
Emerging
Markets
Bond
Fund %
-
Lazard
Lazard
Lazard
Emerging
Lazard Emerging
Markets
Emerging Markets
Lazard Emerging
Debt
Markets
Total Emerging Markets
Lazard
Debt Unrestricted
Local
Return Markets
Blend
Blend Opportunities
Debt
Debt Allocation
Fund %
Fund %
Fund % Fund %
Fund % Fund %
1.25
-
41
Notes to the Financial Statements (continued)
3. Fees (continued)
Performance Fees (continued)
Lazard Emerging Markets Total Return Debt Fund
LAZARD GLOBAL INVESTMENT FUNDS PLC
The Manager is entitled to receive a monthly performance fee in respect of each of the Share classes (the “Performance Fee”) excluding
the B Classes, the X Classes and the USD Management Class, equal to 20% of the Net Gain, if any, during the relevant Performance
Period. A Performance Fee in respect of each relevant Share class shall accrue and become due and payable only in the event that both
of the conditions below are met:
42
• the Ending NAV per Share for any Performance Period during the year has exceeded the Hurdle NAV per Share; and
• the Ending NAV per Share for the applicable Performance Periods exceeds the High Water Mark.
Performance Period
A Performance Period will end on the last Business Day of each calendar month and will begin on the earlier of (i) the end of the
last Business Day of the previous month or (ii) the last Business Day that a Performance Fee was payable or, for a Share class’ initial
Performance Period, the first Business Day following closure of that Share class’ Initial Offer Period.
Ending NAV per Share
With respect to each relevant Share class, the Ending NAV per Share is the Net Asset Value per Share of the relevant class, prior to
the accrual of any applicable Performance Fee and deduction of any applicable dividend, as at the last Valuation Point for the current
Performance Period.
Net Gain
With respect to each relevant Share class, the “Net Gain per Share” is the difference between the Ending NAV per Share and the
higher of (1) the Hurdle NAV per Share and (2) the High Water Mark. “Net Gain” is the Net Gain per Share multiplied by the closing
number of Shares of the relevant class in issue for the relevant Performance Period.
Hurdle NAV per Share
The Hurdle NAV per Share is calculated with respect to each Share class using an annualised hurdle rate of 5% (the “Hurdle Rate”).
For the calendar year in which a Share class is first issued, the Hurdle NAV per Share of the relevant Share class will be calculated
by multiplying the Initial Offer Price per Share of that class by a pro rata portion of Hurdle Rate for the remainder of the year (i.e.,
5% divided by 365 and multiplied by the number of days following the closure of the Initial Offer Period for the relevant Share class
until the end of the relevant calendar year) and adding the result to the Initial Offer Price per Share of the relevant class. For each
subsequent year following the year in which the relevant Share class first issued, the Hurdle NAV per Share will be calculated with
respect to that Share class by multiplying the Net Asset Value per Share of the relevant class on the last Valuation Point of the prior
calendar year by the Hurdle Rate (i.e. 5% as defined above) and adding the result to such Net Asset Value per Share. In each case, the
Hurdle NAV per Share will be adjusted for any dividends paid during the relevant calendar year.
High Water Mark
The High Water Mark is the greater of: (i) the highest Net Asset Value per Share of the relevant Share class (after deduction of any
applicable Performance Fee and any applicable dividend) on the last Valuation Point for any previous Performance Period for which
a Performance Fee was payable; or (ii) the Initial Offer Price per Share of the relevant class. The High Water Mark will be adjusted
for any appropriate dividend paid.
General
For each Share class, the Performance Fee will be calculated by taking the Net Gain per Share of the relevant class for the applicable
Performance Period, and multiplying this by the closing number of Shares of the relevant class in issue and multiplying the resultant
figure by 20%. Any Performance Fee accrued in respect of Shares redeemed during a Performance Period shall be realized and become
payable at the point of redemption. The Performance Fee will be accrued daily and payable as of the end of the relevant Performance
Period. The Performance Fee shall be calculated independently by the Administrator and verified by the Depositary. The Performance
Fee will be divided between Manager and the Investment Manager in such proportions as shall be agreed between the Manager and
the Investment Manager from time to time. For the year ended 31 March 2016, performance fees of USD Nil (31 March 2015: USD
649,837) were charged and USD Nil (31 March 2015: USD Nil) were payable at the year end.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
3. Fees (continued)
Performance Fees (continued)
Lazard Opportunities Fund
Lazard Global Hexagon Equity Fund
The Manager is entitled to receive a monthly performance fee in respect of the USD Institutional Accumulating Class, the Euro
Hedged Institutional Accumulating Class, the GBP Hedged Institutional Accumulating Class and the CHF Hedged Institutional
Accumulating Class, equal to 20% of the Net Gain, if any, in excess of the relevant Share class high water mark during the corresponding
Performance Period. The Manager is also entitled to receive a monthly performance fee in respect of each of the L Classes and the
EA Classes, equal to 10% of the Net Gain, if any, in excess of the relevant Share class high water mark during the corresponding
Performance Period. No performance fee will be charged to the assets of the X Classes.
Lazard Opportunities Fund and Lazard Global Hexagon Equity Fund
Performance Period
The performance fee will be calculated for each Performance Period which will begin as of the date of the Fund’s commencement and
end on the last Valuation Point of the first following month, and on each successive last Valuation Point of each month thereafter (or
the date of the dissolution of the Fund).
Net Gain
The “Net Gain” is the difference between the Net Asset Value of the relevant share class (before deduction of any performance fee)
as at the last Valuation Point for the relevant Performance Period and the relevant share class high water mark recorded at the end of
the previous Performance Period (or the initial Net Asset Value, in the case of the first Performance Period), adjusted for subscriptions
and redemptions.
High Water Mark
A performance fee will be payable in respect of a particular share class only to the extent that gains in the relevant share class Net Asset
Value (before deduction of any performance fee) as at the end of the relevant Performance Period exceeds the highest Net Asset Value
achieved by that share class at the end of a previous Performance Period (commonly referred to as a “high water mark”).
General
The performance fee will be accrued weekly and payable as of the end of the relevant Performance Period. Any performance fee
accrued in respect of shares redeemed during a Performance Period will be realised and become payable at the point of redemption.
The performance fee will be calculated independently by the Administrator and verified by the Depositary. For Lazard Opportunities
Fund, for the year ended 31 March 2016, performance fees of GBP 38,365 (31 March 2015: GBP 25,780) were charged and GBP
Nil (31 March 2015: GBP Nil) were payable at the year end. For Lazard Global Hexagon Equity Fund, for the year ended 31 March
2016, performance fees of USD 373,036 (31 March 2015: USD 105,401) were charged and USD Nil (31 March 2015: USD 1,977)
were payable at the year end.
Lazard European Alternative Fund
The Manager is entitled to receive a performance fee, accrued daily and payable annually, in respect of each of the Share classes (the
“Performance Fee”) excluding the EA Classes, the Management Class and the X Class, equal to 20% of the Net Gain, if any, during
the relevant Performance Period. The Manager is also entitled to receive a performance fee, accrued daily and payable annually, in
respect of each of the EA Classes equal to 10% of the Net Gain, if any, during the relevant Performance Period. No Performance Fee
shall be charged to the assets of the Management Classes and the X Class.
A Performance Fee in respect of each relevant Share class shall accrue and become due and payable only in the event that both of the
conditions below are met:
• the Ending NAV per Share for any Performance Period during the year has exceeded the Hurdle NAV per Share; and
• the Ending NAV per Share for the applicable Performance Periods exceeds the High Water Mark.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
The Manager is entitled to receive a monthly performance fee in respect of each share class in the Fund, with the exception of the
EA classes, equal to 20% of the Net Gain, if any, in excess of the relevant shares class high water mark during the corresponding
Performance Period. In the case of the EA classes, the Manager is entitled to receive a monthly performance fee equal to 10% of the
Net Gain, if any, in excess of the relevant shares class high water mark during the corresponding Performance Period.
43
Notes to the Financial Statements (continued)
3. Fees (continued)
Performance Fees (continued)
Lazard US Fundamental Alternative Fund
LAZARD GLOBAL INVESTMENT FUNDS PLC
The Manager is entitled to receive a performance fee, accrued daily and payable annually, in respect of each of the Share classes (the
“Performance Fee”) excluding the EA Classes, the Management Class and the X Class, equal to 15% of the Net Gain, if any, during
the relevant Performance Period. The Manager is also entitled to receive a performance fee, accrued daily and payable annually, in
respect of each of the EA Classes equal to 10% of the Net Gain, if any, during the relevant Performance Period. No Performance Fee
shall be charged to the assets of the Management Class and the X Class.
44
A Performance Fee in respect of each relevant Share class shall accrue and become due and payable only in the event that both of the
conditions below are met:
• the Ending NAV per Share for any Performance Period during the year has exceeded the Hurdle NAV per Share; and
• the Ending NAV per Share for the applicable Performance Periods exceeds the High Water Mark.
Lazard European Alternative Fund and Lazard US Fundamental Alternative Fund
Performance Period
The first Performance Period for each relevant Share class shall commence as of the first Business Day following the closure of the
Initial Offer Period for that class and end on the last Valuation Point of the then current calendar year. Each subsequent Performance
Period shall commence immediately on the end of the prior Performance Period and end on the last Valuation Point of the next
following calendar year.
Ending NAV per Share
With respect to the Shares of each relevant class, the Ending NAV per Share is the NAV per Share of the relevant class, prior to the
accrual of any applicable Performance Fee and deduction of any applicable dividend, as at the last Valuation Point for the relevant
Performance Period.
Net Gain
With respect to the Shares of each relevant class, the Net Gain per Share is the difference between the Ending NAV per Share and the
higher of (1) the Hurdle NAV per Share and (2) the High Water Mark. “Net Gain” is the Net Gain per Share multiplied by the average
number of Shares of the relevant class in issue during the period commencing on the date on which the then current Performance
Period began and ending on the accrual date. The average number of Shares may be adjusted to take account of redemptions during
the relevant period.
Hurdle NAV per Share
The Hurdle NAV per Share is calculated by applying the prevailing 3 month Euribor rate (provided such rate is not a negative number
and subject to a cap of 5%) as at the date of accrual of the Performance Fee (the “Hurdle Rate”) to the opening Net Asset Value per
Share of the then current Performance Period of the relevant class (the “Opening NAV per Share”) or, where the current Performance
Period is the first Performance Period for the relevant class, to the Initial Offer Price per Share of the relevant Shares. Where the 3
month Euribor rate prevailing at the relevant time is a negative number, the Hurdle NAV per Share shall be the Opening NAV per
Share or the Initial Offer Price per Share of the relevant class as the case may be.
High Water Mark
The High Water Mark is the greater of: (i) the highest NAV per Share of the relevant Share class (after deduction of any applicable
Performance Fee and any applicable dividend) on the last Valuation Point for any previous Performance Period for which a Performance
Fee was payable; or (ii) the Initial Offer Price per Share of the relevant Share class. The High Water Mark will be adjusted for any
appropriate dividend paid.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
3. Fees (continued)
Performance Fees (continued)
Lazard European Alternative Fund and Lazard US Fundamental Alternative Fund (continued)
For each Share class (excluding the EA Classes, the Management Classes and the X Class) the Performance Fee will be calculated by
taking the Net Gain for the relevant Share class for the applicable Performance Period and multiplying this by the average number of
Shares of the relevant class in issue and multiplying the resultant figure by 20% and 15% for Lazard European Alternative Fund and
Lazard US Fundamental Alternative Fund respectively. For each of the EA Classes the Performance Fee will be calculated by taking
the Net Gain for the relevant EA Class for the applicable Performance Period and multiplying the resultant figure by 10%. Each Share
shall bear its pro-rata share of the Performance Fee, if any, payable in respect of the relevant class. The Performance Fee will be accrued
daily and, provided the relevant Shares have not been redeemed, will be payable as of the end of the relevant Performance Period.
Any Performance Fee accrued in respect of Shares redeemed during a Performance Period shall be realised and become payable at the
point of redemption. The Performance Fee shall be calculated independently by the Administrator and verified by the Depositary. For
Lazard European Alternative Fund, for the year ended 31 March 2016, performance fees of EUR 203,651 were charged and EUR
32,374 were payable at the year end. For Lazard US Fundamental Alternative Fund, for the year ended 31 March 2016, performance
fees of USD Nil were charged and USD Nil were payable at the year end.
There is no performance fee charged in relation to any of Lazard Emerging Markets Bond Fund, Lazard Emerging Markets Local
Debt Fund, Lazard Emerging Markets Allocation Fund, Lazard Emerging Markets Debt Blend Fund and Lazard Emerging Market
Debt Unrestricted Blend Fund.
Reimbursement from Manager
Each class of Shares of each Fund shall bear its attributable portion of the other expenses of the Company, (as set out in detail under
the heading “Other Expenses” in the section of the Prospectus entitled “Fees and Expenses”), subject to an overall cap on expenses
of 0.23% per annum of the Net Asset Value of the Funds with respect to Lazard Emerging Markets Bond Fund, Lazard Emerging
Markets Local Debt Fund, Lazard Emerging Markets Total Return Debt Fund, Lazard Emerging Markets Debt Blend Fund and
Lazard Emerging Market Debt Unrestricted Blend Fund. In the case of Lazard Emerging Markets Allocation Fund, Lazard Global
Hexagon Equity Fund, Lazard European Alternative Fund and Lazard US Fundamental Alternative Fund, the cap is 0.30% and in
the case of Lazard Opportunities Fund, the cap is 0.55%. As at the 31 March 2016, the above caps on expenses are in effect on all
of the Funds except for Lazard Emerging Markets Total Return Debt Fund, Lazard Emerging Markets Debt Blend Fund, Lazard
Emerging Market Debt Unrestricted Blend Fund and Lazard European Alternative Fund. The Manager will be responsible for any
such expenses in excess of this limit with the exception of the expenses of acquiring and disposing of Investments (including brokerage
expenses, custodial and sub-custodial transaction charges, stamp duties and other relevant taxes). For Lazard European Alternative
Fund and Lazard US Fundamental Alternative Fund, the expenses of acquiring and disposing of investments are included in the cap.
For the avoidance of doubt, the Manager will not be responsible for the costs of hedging the currency exposure for the benefit of any
particular Share class of the Fund, which costs shall be attributable exclusively to the relevant Share class. For the year ended 31 March
2016, reimbursement from the Manager was USD 361,364 (31 March 2015: USD 205,379) of which USD 221,410 (31 March 2015:
USD 45,407) remained receivable at the year end.
Administration, Transfer Agency and Depositary Fees
The Administrator is entitled to an annual fee payable by the Funds of up to 0.10% of the Funds Net Asset Value. Such fees shall
accrue daily and be payable monthly in arrears. The Administrator shall also be entitled to recover from the Funds its reasonable outof-pocket expenses.
Shareholder and transfer agency services fees which shall be charged at normal commercial rates subject to a minimum monthly fee of
USD 750 for each Share class that has issued in the Funds (exclusive of transaction charges, which shall be at normal commercial rates).
State Street Custodial Services (Ireland) Limited acted as the Custodian to the Company from 1 April 2015 to 17 March 2016 when
State Street Custodial Services (Ireland) Limited was then appointed as the Depositary with effect from 18 March 2016.
Up to 17 March 2016, the Custodian was entitled to be paid by the Funds an annual fee for the performance of its trustee functions
of up to 0.02% of the Funds’ Net Asset Value. Since 18 March 2016, the fee being paid to the Depositary has now changed to 0.04%.
Such fees shall accrue daily and be paid by the Fund monthly in arrears.
The Depositary is also entitled to charge the Funds transaction costs, which shall be at normal commercial rates, and to be reimbursed
by the Funds for the fees and transactions charges of any sub-custodian (which shall also be at normal commercial rates), together with
its reasonable, out-of-pocket expenses and those of any sub custodians.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
General
45
Notes to the Financial Statements (continued)
3. Fees (continued)
Administration, Transfer Agency and Depositary Fees (continued)
For the year ended 31 March 2016, administration, transfer agency and custody/depositary fees of USD 5,030,870 (31 March 2015:
USD 5,802,548) were charged of which USD 1,181,650 (31 March 2015: USD 832,811) remained payable at the year end.
LAZARD GLOBAL INVESTMENT FUNDS PLC
For six months from the date of launch of each Fund, fees payable to State Street for provision of Administration and Depositary
services shall be subject to a cap of 18.5 basis points. Custodial fees related to safekeeping and related transaction costs are excluded
from this cap, as are all relevant out of pocket expenses, whether payable to the Depositary, Administrator or other third party.
46
Currency Manager’s Fees
The Funds shall pay the Currency Manager an annual fee, calculated and accrued daily and payable quarterly in arrears, not in excess
of 0.06% per annum of the Net Asset Value of each hedged Share class in issue, such fee to accrue solely to the hedged Share class
in respect of which it is incurred. The foregoing fee is subject to the Currency Manager being entitled to a minimum annual service
fee, calculated and accrued daily and payable quarterly in arrears, of US$75,000 charged pro rata to all relevant hedged Share classes
in issue per Fund. For the year ended 31 March 2016, currency manager's fees of USD 608,363 (31 March 2015: USD 773,456) were
charged of which USD 131,793 (31 March 2015: USD 177,121) remained payable at the year end.
Directors’ Fees
Directors’ fees charged over the year were USD 71,848 (2015: USD 41,782), of which USD 27,495 (2015: USD 21,583) were
outstanding at 31 March 2016. The Company paid USD 38,166 (31 March 2015: USD 46,519) to Carne Global Financial Services
Limited in respect of Director support service fees for John Donohoe.
Auditors’ Fees
Fees and expenses paid to the statutory auditors, PricewaterhouseCoopers (Ireland), in respect of the financial year, entirely relate to
the audit of the financial statements of the Company. There were no fees and expenses paid in respect of other assurance, tax advisory
or non-audit services provided by the auditors for the years ended 31 March 2016 or 31 March 2015.
Auditors’ remuneration for the year was USD 91,370 (2015: USD 84,090), of which USD 112,364 was outstanding at 31 March 2016
(2015: USD 82,270). These fees include out of pocket audit expenses and are exclusive of VAT.
Transaction Costs
As disclosed in Note 2, transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of the
financial asset or financial liability. Under purchases and sales transaction costs detailed below are the transaction costs on the purchase
and sales of equities, futures contracts, options contracts and collective investment schemes. Commission/brokerage costs on the
purchase and sale of fixed income securities, money market instruments, contracts for difference, forward foreign exchange currency
contracts and swaps, transaction costs on these instruments cannot be separately identified. They are included in the purchase and sale
price of the investment, and therefore not disclosed separately in this note.
The following tables show the transaction costs for the year ended 31 March 2016 and 31 March 2015:
31 March 2016
Lazard
Lazard
Lazard Emerging
Lazard
Lazard Emerging Markets
Lazard
Lazard
Emerging
Lazard Emerging
Emerging Markets
Global
US
Total Emerging Markets Markets Debt
Lazard
Lazard Hexagon European Fundamental
Markets
Local
Debt Unrestricted
Return Markets
Bond
Debt
Blend
Equity Alternative
Alternative
Debt Allocation
Blend Opportunities
Fund
Fund
Fund*
Fund
Fund
Fund
Fund****
Fund
Fund ***
Fund **
USD
USD
USD
USD
USD
USD
GBP
USD
EUR
USD
Custody transaction costs
Purchases and sales transaction costs
13,666 153,940
-
Total
USD
171,704
94,647
69,204
22,577
40,919
26,031
7,848
365
622,238
-
55,124
41,431
23,501
33,075
506,293
549,648
501
1,282,417
-
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
3. Fees (continued)
Transaction Costs (continued)
31 March 2015
Custody transaction costs
Purchases and sales transaction costs
Lazard
Emerging
Markets
Allocation
Fund
USD
Lazard
Emerging
Markets Debt
Blend Fund
USD
Lazard
Opportunities
Fund
Lazard
Global
Hexagon
Equity
Fund
GBP
USD
USD
Total
11,462
181,406
223,703
174,257
118,586
25,855
28,633
779,670
-
-
-
37,453
157,483
12,946
1,021,852
1,237,629
* Lazard Emerging Markets Allocation Fund was fully redeemed on 10 November 2015.
** Lazard European Alternative Fund launched on 28 September 2015.
*** Lazard Emerging Market Debt Unrestricted Blend Fund launched on 8 December 2015.
**** Lazard US Fundamental Alternative Fund launched on 4 January 2016.
4. Taxation
Under current law and practice, the Company qualifies as an investment undertaking as defined in Section 739B of the Taxes
Consolidation Act, 1997, as amended. On that basis the Company will not be liable to taxation in respect of its income and gains,
other than on the occurrence of a chargeable event. Generally a chargeable event arises on any distribution, redemption, repurchase,
cancellation, transfer of shares or on the ending of a ‘relevant period’, a ‘relevant period’ being an eight year period beginning with the
acquisition of the shares by the shareholders and each subsequent period of eight years beginning immediately after the preceding
relevant period.
A chargeable event does not include:
a) any transactions in relation to shares held in a recognised clearing system as designated by order of the Revenue
Commissioners of Ireland: or
b) an exchange of shares representing a Fund for another Fund: or
c) an exchange of shares arising on a qualifying amalgamation or reconstruction of a Fund with another Fund: or
d) certain exchanges of shares between spouses and former spouses.
A chargeable event will not occur in respect of shareholders who are neither resident nor ordinarily resident in Ireland and who have
provided the Company with a relevant declaration to that effect.
In the absence of an appropriate declaration, the Company will be liable to Irish Tax on the occurrence of a chargeable event. There
were no chargeable events during the period under review.
Capital gains, dividends and interest received may be subject to withholding taxes imposed by the country of origin and such taxes may
not be recoverable by a Fund or its shareholders.
5. Capital and Reserves
The Company has a variable share capital.
Management Shares
The authorised share capital of the Company was two Subscriber Shares of par value of £1.00 each. The two Subscriber Shares are
held by the Manager and the Promoter. The subscriber shares do not form part of the net asset value of the Company.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Lazard
Lazard
Lazard
Emerging
Emerging
Emerging Markets Total
Markets Bond Markets Local
Return Debt
Fund
Debt Fund
Fund
USD
USD
USD
47
Notes to the Financial Statements (continued)
5. Capital and Reserves (continued)
Redeemable Participating Shares
LAZARD GLOBAL INVESTMENT FUNDS PLC
The Company also has an authorised share capital of 5,000,000,000,000 shares of no par value which are available for issue as fully paid
Participating Shares in each of the Company’s Funds (“Redeemable Participating Shares”). They may be redeemed by the Company at
the request of the shareholder. The value of shares issued and redeemed during the year is set out in the Statement of Changes in Net
Assets attributable to Redeemable Participating Shareholders. Each Fund issues redeemable participating shares, which are redeemable
at the holder’s option and are classified as financial liabilities. Redeemable participating shares can be put back to the Fund at any time
for cash equal to a proportionate share of the Fund’s net asset value. The redeemable participating share is carried at the redemption
amount that is payable at the Statement of Financial Position date if the holder exercises the right to put the share back to the Fund.
48
The activity on redeemable participating shares for the year ended 31 March 2016 and 31 March 2015 is as follows:
Lazard Emerging Markets Bond Fund
Shares
Beginning of year
31/03/2016
31/03/2015
Value of Share
Transactions
USD
Value of Share
Transactions
USD
130,685
Shares
138,736
Subscriptions during the year
- USD Institutional Accumulating Class
-
-
-
- EURO Hedged Institutional Accumulating Class
-
-
-
-
130,685
-
138,736
-
- USD Institutional Accumulating Class
-
-
(8,051)
(1,000,000)
- EURO Hedged Institutional Accumulating Class
-
-
-
-
-
-
(8,051)
(1,000,000)
Redemptions during the year
End of year
130,685
Lazard Emerging Markets Local Debt Fund
Beginning of year
Shares
130,685
31/03/2016
31/03/2015
Value of Share
Transactions
USD
Value of Share
Transactions
USD
2,765,899
Shares
4,594,266
Subscriptions during the year
- USD Institutional Accumulating Class
995,332
86,556,995
2,110,154
- USD Institutional Distributing Class
337,906
27,950,000
-
-
-
-
8,000
1,008,802
- EURO Hedged Institutional Accumulating Class
- GBP Hedged Institutional Distributing Class
218,529,362
-
-
-
-
1,333,238
114,506,995
2,118,154
219,538,164
(372,601,860)
Redemptions during the year
- USD Institutional Accumulating Class
(808,846)
(69,273,226)
(3,929,447)
- USD Institutional Distributing Class
(337,906)
(24,428,373)
-
-
(685)
(64,123)
(5,000)
(479,689)
- EURO Hedged Institutional Accumulating Class
- GBP Hedged Institutional Distributing Class
End of year
(2,905)
(355,418)
(12,074)
(1,591,798)
(1,150,342)
(94,121,140)
(3,946,521)
(374,673,347)
2,948,795
Lazard Emerging Markets Total Return Debt Fund
Beginning of year
Shares
2,765,899
31/03/2016
31/03/2015
Value of Share
Transactions
USD
Value of Share
Transactions
USD
9,672,949
Shares
9,314,932
Subscriptions during the year
- USD Institutional Accumulating Class
46,919
5,021,374
580,741
-
-
15,289
1,876,073
- USD Institutional Accumulating B Class
54,410
5,321,919
373,681
39,329,982
- USD Retail Accumulating Class
26,285
2,718,577
138,423
14,965,203
-
-
-
-
397,805
44,564,431
915,080
136,902,942
2,244,741
- USD Management Class - USD X Class - EURO Hedged Institutional Accumulating Class
- EURO Hedged Institutional Accumulating B Class
- EURO Hedged Retail Accumulating Class
- EURO Hedged Institutional Distributing Class
- EURO Hedged Institutional Distributing B Class
Lazard Global Investment Funds plc
65,723,712
700
80,531
16,820
4,924
554,046
36,840
5,222,270
31,250
3,061,654
582,104
75,486,916
5,071
542,136
1,148,478
144,376,430
Year ended 31 March 2016
Notes to the Financial Statements (continued)
5. Capital and Reserves (continued)
Lazard Emerging Markets Total Return Debt Fund
(continued)
Shares
- GBP Hedged Institutional Accumulating Class
31/03/2016
31/03/2015
Value of Share
Transactions
USD
Shares
Value of Share
Transactions
USD
-
-
1,940
348,975
320
49,811
1,830
317,735
244,979
16,611,331
178,278
15,279,193
-
-
-
-
25,097
2,534,640
237,613
23,627,021
837,760
81,060,450
4,227,117
525,701,193
(797,921)
(84,180,935)
(1,283,837)
(143,945,404)
(51,372)
(5,893,797)
(4,070)
(489,000)
(551,400)
(54,417,799)
(30,000)
(3,166,538)
(87,351)
(8,825,044)
(17,597)
(1,842,876)
-
-
(2,662)
(243,810)
(1,241,161)
(140,667,902)
(768,260)
(112,730,601)
(181,135,978)
- GBP Hedged Retail Accumulating Class
- AUD Hedged Management Class
- YEN Hedged Institutional Accumulating Class
- CHF Hedged Institutional Accumulating Class Redemptions during the year
- USD Institutional Accumulating Class
- USD Management Class - USD Institutional Accumulating B Class
- USD Retail Accumulating Class
- USD X Class - EURO Hedged Institutional Accumulating Class
- EURO Hedged Institutional Accumulating B Class
(216,514)
(24,688,155)
(1,384,560)
- EURO Hedged Retail Accumulating Class
(103,184)
(11,566,426)
(25,950)
(3,330,063)
- EURO Hedged Institutional Distributing Class
(267,747)
(26,829,066)
(30,050)
(3,688,162)
- EURO Hedged Institutional Distributing B Class
(1,007,866)
(101,613,859)
(274,374)
(30,945,539)
- GBP Hedged Institutional Accumulating Class
(1,863)
(280,942)
(7,081)
(1,320,951)
- GBP Hedged Retail Accumulating Class
(1,922)
(281,327)
-
-
(24,656)
(1,633,914)
(1,372)
(116,694)
- AUD Hedged Management Class
- YEN Hedged Institutional Accumulating Class
- CHF Hedged Institutional Accumulating Class End of year
-
-
-
-
(223,423)
(20,926,969)
(39,287)
(3,989,698)
(4,576,380)
(481,806,135)
(3,869,100)
(486,945,314)
5,934,329
Lazard Emerging Markets Allocation Fund
Shares
Beginning of year
9,672,949
31/03/2016
31/03/2015
Value of Share
Transactions
USD
Value of Share
Transactions
USD
275,976
Shares
218,532
Subscriptions during the year
- USD Institutional Accumulating Class
-
-
378
- USD Institutional Distributing Class
58
4,980
248
24,343
- GBP Hedged Institutional Distributing Class
88
12,190
6,999
1,163,943
- GBP Hedged Retail Distributing C Class
44,196
4,216
560,328
56,392
9,043,781
4,362
577,498
64,017
10,276,263
-
Redemptions during the year
- USD Institutional Accumulating Class
(141,983)
(13,627,573)
-
- USD Institutional Distributing Class
(39,249)
(3,188,917)
-
-
- GBP Hedged Institutional Distributing Class
(39,229)
(4,810,496)
(5,842)
(887,296)
- GBP Hedged Retail Distributing C Class
(59,877)
(7,383,011)
(731)
(103,692)
(280,338)
(29,009,997)
(6,573)
(990,988)
End of year
-
Lazard Emerging Markets Debt Blend Fund
Beginning of year
Shares
275,976
31/03/2016
31/03/2015
Value of Share
Transactions
USD
Value of Share
Transactions
USD
16,527,366
Shares
8,276,173
Subscriptions during the year
- USD Institutional Accumulating Class
4,481,296
400,342,523
5,763,650
-
-
30,000
3,000,000
782
72,219
1,311,300
157,759,851
- USD Management Class - EURO Hedged Institutional Accumulating Class
Lazard Global Investment Funds plc
561,516,734
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Redeemable Participating Shares (continued)
49
Notes to the Financial Statements (continued)
5. Capital and Reserves (continued)
Redeemable Participating Shares (continued)
31/03/2016
31/03/2015
Shares
Value of Share
Transactions
USD
Shares
Value of Share
Transactions
USD
432,348
54,253,613
4,390,014
601,376,955
6,658
709,696
264,394
33,454,181
1,311,239
143,061,118
-
-
61,098
6,072,017
421,530
43,786,246
Lazard Emerging Markets Debt Blend Fund
(continued)
- EURO Institutional Accumulating K Class
- EURO Institutional Distributing K Class
LAZARD GLOBAL INVESTMENT FUNDS PLC
- EURO Hedged Accumulating X Class
50
- CHF Hedged Institutional Accumulating Class
- GBP Institutional Accumulating Class 196,000
29,701,830
-
-
6,489,421
634,213,016
12,180,888
1,400,893,967
(2,713,554)
(236,873,235)
(2,553,389)
(247,421,375)
(30,000)
(2,785,101)
-
-
- EURO Hedged Institutional Accumulating Class
(1,177,421)
(113,829,928)
(225,906)
(26,976,405)
- EURO Institutional Accumulating K Class
Redemptions during the year
- USD Institutional Accumulating Class
- USD Management Class (3,499,744)
(419,695,501)
(1,075,704)
(143,088,029)
- EURO Institutional Distributing K Class
(194,393)
(19,821,034)
(74,696)
(9,004,850)
- EURO Hedged Accumulating X Class
(722,500)
(71,264,501)
-
-
-
-
-
-
(196,000)
(29,794,398)
-
-
(8,533,612)
(894,063,698)
(3,929,695)
(426,490,659)
- CHF Hedged Institutional Accumulating Class
- GBP Institutional Accumulating Class End of year
14,483,175
16,527,366
31/03/2016
Lazard Emerging Markets Unrestricted Debt
Blend Fund
Shares
Beginning of year
Value of Share
Transactions
USD
-
Subscriptions during the year
- EURO Institutional Accumulating K Class
3,111,874
340,188,016
- EURO Hedged Accumulating X Class
1,298,207
141,980,084
- GBP Institutional Accumulating Class
251,768
38,149,230
- GBP Institutional Accumulating K Class
570,000
80,854,504
- CHF Hedged Institutional Accumulating Class
20,000
2,012,072
- USD Institutional Accumulating Class
45,810
4,580,990
658,978
65,897,835
5,956,637
673,662,731
(2,080,539)
(226,132,286)
- USD Accumulating X Class
Redemptions during the year
- EURO Institutional Accumulating K Class
- EURO Hedged Accumulating X Class
-
-
- GBP Institutional Accumulating Class
-
-
- GBP Institutional Accumulating K Class
-
-
- CHF Hedged Institutional Accumulating Class
-
-
- USD Institutional Accumulating Class
-
-
- USD Accumulating X Class
-
-
(2,080,539)
(226,132,286)
End of year
3,876,098
Lazard Opportunities Fund
Beginning of year
Shares
31/03/2016
31/03/2015
Value of Share
Transactions
GBP
Value of Share
Transactions
GBP
37,448,811
Shares
40,006,207
Subscriptions during the year
- USD Hedged Institutional Accumulating Class
4,768,988
3,371,503
1,540,578
1,012,659
- USD Hedged Institutional Accumulating EA Class
-
-
13,818,519
8,888,415
- EURO Hedged Institutional Accumulating Class
-
-
256,351
227,787
- EURO Hedged Institutional Accumulating EA Class
-
-
5,514,345
4,638,464
- GBP Hedged Institutional Accumulating EA Class
-
-
1,817,359
2,008,000
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
5. Capital and Reserves (continued)
31/03/2016
31/03/2015
Shares
Value of Share
Transactions
GBP
Value of Share
Transactions
GBP
- GBP Institutional Accumulating Class
-
-
-
-
- YEN Hedged Institutional Accumulating Class
-
-
5,674,710
3,280,515
4,768,988
3,371,503
28,621,862
20,055,840
Lazard Opportunities Fund (continued)
Shares
Redemptions during the year
- USD Hedged Institutional Accumulating Class
- USD Hedged Institutional Accumulating EA Class
-
-
(16,324,996)
(10,584,600)
(5,961,736)
(4,280,029)
(6,382,830)
(4,185,016)
(98,050)
(74,030)
(635,673)
(524,278)
(735,944)
(579,101)
(7,631,604)
(6,109,199)
- EURO Hedged Institutional Accumulating Class
- EURO Hedged Institutional Accumulating EA Class
- GBP Hedged Institutional Accumulating EA Class
- GBP Institutional Accumulating Class
- YEN Hedged Institutional Accumulating Class
End of year
-
-
-
-
(10,562,034)
(11,244,869)
(204,155)
(217,342)
(5,674,710)
(3,371,503)
-
-
(23,032,474)
(19,549,532)
(31,179,258)
(21,620,435)
19,185,325
Lazard Global Hexagon Equity Fund
Beginning of year
Shares
37,448,811
31/03/2016
31/03/2015
Value of Share
Transactions
USD
Value of Share
Transactions
USD
1,330,907
Shares
705,614
Subscriptions during the year
- USD Institutional Accumulating Class
23,132
2,338,896
39,005
- USD Institutional Accumulating EA Class
27,538
2,800,000
37,572
3,818,592
3,780,000
- USD Institutional Accumulating L Class
2,419
249,244
56,944
5,624,439
- EURO Hedged Institutional Accumulating EA Class
40,707
4,653,833
599,953
78,626,458
- EURO Hedged Institutional Accumulating L Class
25,726
2,877,260
103,603
13,082,434
851
92,156
1,610
178,658
-
-
-
-
120,373
13,011,389
838,687
105,110,581
(15,286)
(1,418,712)
(12,350)
(1,219,395)
(501)
(49,010)
-
-
(78,355)
(7,968,549)
(92)
(9,173)
- CHF Hedged Institutional Accumulating L Class
- GBP Hedged Institutional Accumulating EA Class
Redemptions during the year
- USD Institutional Accumulating Class
- USD Institutional Accumulating EA Class
- USD Institutional Accumulating L Class
- EURO Hedged Institutional Accumulating EA Class
(456,118)
(49,277,945)
(133,275)
(16,370,930)
- EURO Hedged Institutional Accumulating L Class
(273,340)
(30,538,956)
(59,718)
(7,724,616)
(7,515)
(799,400)
(5,959)
(625,467)
-
-
(2,000)
(328,081)
(831,115)
(90,052,572)
(213,394)
(26,277,662)
- CHF Hedged Institutional Accumulating L Class
- GBP Hedged Institutional Accumulating EA Class
End of year
620,165
1,330,907
31/03/2016
Lazard European Alternative Fund
Shares
Beginning of year
Value of Share
Transactions
EUR
-
Subscriptions during the year
- EURO Institutional Accumulating Class
- EURO Institutional Accumulating EA Class*
923,123
91,388,750
1,391,032
139,179,104
565,436
56,873,841
34,330
3,454,331
- EURO Institutional Accumulating LP Class
- EURO Institutional Distributing LP Class
- EURO Retail Distributing P Class
420
42,000
- USD Hedged Institutional Accumulating Class
10,000
925,540
- USD Hedged Institutional Accumulating EA Class*
60,000
5,355,230
* These EA share classes are now closed to new investors.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Redeemable Participating Shares (continued)
51
Notes to the Financial Statements (continued)
5. Capital and Reserves (continued)
Redeemable Participating Shares (continued)
31/03/2016
Lazard European Alternative Fund (continued)
Shares
- USD Hedged Institutional Accumulating LP Class
2,568
231,326
167,128
14,889,056
3,154,037
312,339,178
- EURO Institutional Accumulating Class
(11,608)
(1,152,144)
- EURO Institutional Accumulating EA Class*
(16,200)
(1,624,095)
- EURO Institutional Accumulating LP Class
(243,703)
(24,518,272)
(1)
(100)
LAZARD GLOBAL INVESTMENT FUNDS PLC
- USD Hedged Management Class
52
Value of Share
Transactions
EUR
Redemptions during the year
- EURO Institutional Distributing LP Class
- EURO Retail Distributing P Class
-
-
- USD Hedged Institutional Accumulating Class
-
-
(7,876)
(733,037)
- USD Hedged Institutional Accumulating EA Class*
- USD Hedged Institutional Accumulating LP Class
-
-
- USD Hedged Management Class
-
-
(279,388)
(28,027,648)
End of year
2,874,649
31/03/2016
Lazard US Fundamental Alternative Fund
Shares
Beginning of year
Value of Share
Transactions
USD
-
Subscriptions during the year
- EURO Hedged Institutional Accumulating EA Class
53,750
- USD Institutional Accumulating Class
- USD Institutional Accumulating EA Class
- USD Management Class
5,879,978
1,000
100,000
61,596
6,113,986
29,000
2,900,000
145,346
14,993,964
Redemptions during the year
- EURO Hedged Institutional Accumulating EA Class
-
-
- USD Institutional Accumulating Class
-
-
(45)
(4,340)
- USD Institutional Accumulating EA Class
- USD Management Class
End of year
-
-
(45)
(4,340)
145,301
See Note 14 for information on the launch and termination dates of the above share classes.
6. Net Asset Value
The net asset value per share of any class of shares in a portfolio is determined by dividing the value of net assets of the Fund by the
total number of Redeemable Participating Shares in issue at 31 March 2016, 31 March 2015 and 31 March 2014. The net asset value
and net asset value per share in the following tables are stated in the currency of the relevant class.
Lazard Emerging Markets Bond Fund USD Institutional Accumulating Class
Lazard Emerging Markets Bond
Fund - EURO Hedged Institutional
Accumulating Class
Number of
Redeemable
Participating
Net Asset
Net Asset
shares in
Value per
Value at 31 issue at 31 Share at 31
March 2016 March 2016 March 2016
Number of
Redeemable Net Asset
Participating Value per
Net Asset
shares in Share at
Value at 31 issue at 31 31 March
March 2015 March 2015
2015
Number of
Redeemable
Participating Net Asset
Net Asset
shares in Value per
Value at 31 issue at 31 Share at 31
March 2014 March 2014 March 2014
$16,185,043
126,042
$128.41
$15,580,143
126,042
$123.61
$16,027,049
134,093
$119.52
€ 587,587
4,643
€ 126.55
€ 568,956
4,643
€ 122.54
€ 550,321
4,643
€ 118.53
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
6. Net Asset Value (continued)
Lazard Emerging Markets Local Debt
Fund - USD Institutional Accumulating
Class
Lazard Emerging Markets Local Debt
Fund - USD Institutional Distributing
Class
Lazard Emerging Markets Local Debt
Fund - EURO Hedged Institutional
Accumulating Class
Lazard Emerging Markets Local Debt
Fund - GBP Hedged Institutional
Distributing Class
Lazard Emerging Markets Total
Return Debt Fund - USD Institutional
Accumulating Class
Lazard Emerging Markets Total Return
Debt Fund - USD Management Class
Lazard Emerging Markets Total
Return Debt Fund - USD Institutional
Accumulating B Class
Lazard Emerging Markets Total Return
Debt Fund - USD Retail Accumulating
Class
Lazard Emerging Markets Total Return
Debt Fund - USD X Class
Number of
Redeemable Net Asset
Participating Value per
Net Asset
shares in Share at
Value at 31 issue at 31 31 March
March 2015 March 2015
2015
Number of
Redeemable
Participating Net Asset
Net Asset
shares in Value per
Value at 31 issue at 31 Share at 31
March 2014 March 2014 March 2014
$208,690,840
2,350,443
$88.79
$198,123,998
2,163,957
$91.56
$409,928,001
3,983,250
$102.91
$45,002,374
589,400
$76.35
$48,715,971
589,400
$82.65
$57,533,231
589,400
$97.61
€ 686,284
8,000
€ 85.79
€ 775,182
8,685
€ 89.25
€ 572,315
5,685
€ 100.67
£76,225
952
£80.08
£335,584
3,857
£87.01
£1,635,465
15,931
£102.66
$62,753,923
591,417
$106.11
$146,680,008
1,342,419
$109.27
$228,026,438
2,045,515
$111.48
-
-
-
$6,035,432
51,372
$117.49
$4,772,686
40,153
$118.86
$37,272,343
367,691
$101.37
$91,170,035
864,681
$105.44
$56,557,129
521,000
$108.55
$6,949,699
69,200
$100.43
$13,539,324
130,266
$103.94
$1,005,286
9,440
$106.49
-
-
-
-
-
-
$259,820
2,662
$97.62
1,342,650
€ 104.13
€ 236,050,764
2,186,006
€ 107.98
€ 225,130,055
2,039,186
€ 110.40
275,072
€ 100.95
€ 51,868,670
490,886
€ 105.66
€ 202,605,040
1,858,626
€ 109.01
20,331
€ 100.22
€ 12,377,226
118,591
€ 104.37
€ 11,549,343
107,701
€ 107.24
1,862,674
€ 89.63
€ 203,094,550
2,099,171
€ 96.75
€ 158,094,635
1,547,117
€ 102.19
682,651
€ 94.40
€ 171,380,057
1,685,446
€ 101.68
€ 87,162,996
811,342
€ 107.43
3,612
£104.51
£589,390
5,475
£107.66
£1,163,117
10,616
£109.57
565
£100.72
£226,105
2,167
£104.33
£35,985
337
£106.69
Lazard Emerging Markets Total Return
Debt Fund - EURO Hedged Institutional
€ 139,809,112
Accumulating Class
Lazard Emerging Markets Total Return
Debt Fund - EURO Hedged Institutional
€ 27,768,800
Accumulating B Class
Lazard Emerging Markets Total Return
Debt Fund - EURO Hedged Retail
€ 2,037,495
Accumulating Class
Lazard Emerging Markets Total Return
Debt Fund - EURO Hedged Institutional
€ 166,944,159
Distributing Class
Lazard Emerging Markets Total Return
Debt Fund - EURO Hedged Institutional
€ 64,444,009
Distributing B Class
Lazard Emerging Markets Total Return
Debt Fund - GBP Hedged Institutional
£377,425
Accumulating Class
Lazard Emerging Markets Total Return
Debt Fund - GBP Hedged Retail
£56,913
Accumulating Class
Lazard Emerging Markets Total Return
Debt Fund - AUD Hedged Management AUD $54,772,983
Class
Lazard Emerging Markets Total Return
Debt Fund - YEN Hedged Institutional
¥1,192,927,564
Accumulating Class
Lazard Emerging Markets Total Return
Debt Fund - CHF Hedged Institutional
Accumulating Class Lazard Emerging Markets Allocation
Fund - USD Institutional Accumulating
Class
Lazard Emerging Markets Allocation
Fund - USD Institutional Distributing
Class
Lazard Emerging Markets Allocation
Fund - GBP Hedged Institutional
Distributing Class
Lazard Emerging Markets Allocation
Fund - GBP Hedged Retail Distributing
C Class
Lazard Emerging Markets Debt Blend
Fund - USD Institutional Accumulating
$1,024,168,890
Class
593,466
AUD $92.29 AUD $36,315,042
373,143 AUD $97.32 AUD $19,648,274
196,237 AUD $100.13
125,000
¥9,543.42 ¥1,234,934,352
125,000 ¥9,879.47 ¥1,260,497,284
125,000 ¥10,083.98
-
- CHF 19,154,966
198,326 CHF 96.58
-
-
$14,759,967
141,983
-
-
$3,465,705
-
-
11,589,563
Lazard Global Investment Funds plc
-
-
-
$103.96
$15,770,457
141,605
$111.37
39,191
$88.43
$3,708,498
38,943
$95.23
£3,491,380
39,141
£89.20
£3,639,971
37,984
£95.83
-
£4,961,306
55,661
£89.13
-
-
-
$88.37
$889,625,096
9,821,821
$90.58
$636,304,865
6,611,560
$96.24
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Number of
Redeemable
Participating
Net Asset
Net Asset
shares in
Value per
Value at 31 issue at 31 Share at 31
March 2016 March 2016 March 2016
53
Notes to the Financial Statements (continued)
6. Net Asset Value (continued)
Number of
Redeemable
Participating
Net Asset
Net Asset
shares in
Value per
Value at 31 issue at 31 Share at 31
March 2016 March 2016 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Lazard Emerging Markets Debt Blend
Fund - USD Management Class
54
Number of
Redeemable Net Asset
Participating Value per
Net Asset
shares in Share at
Value at 31 issue at 31 31 March
March 2015 March 2015
2015
Number of
Redeemable
Participating Net Asset
Net Asset
shares in Value per
Value at 31 issue at 31 Share at 31
March 2014 March 2014 March 2014
-
-
-
$2,980,173
30,000
$99.34
-
-
-
€ 135,643,245
1,573,368
€ 86.21
€ 244,748,231
2,750,007
€ 89.00
€ 157,868,272
1,664,613
€ 94.84
€ 27,541,497
246,914
€ 111.54
€ 400,837,532
3,314,310
€ 120.94
-
-
-
€ 190,519
1,963
€ 97.06
€ 20,974,273
189,698
€ 110.57
-
-
-
€ 56,597,874
588,739
€ 96.13
-
-
-
-
-
-
CHF 43,722,677
482,628
421,530 CHF 94.30
-
-
-
€ 105,461,740
1,031,335
€ 102.26
-
-
-
-
-
-
€ 137,234,805
1,298,207
€ 105.71
-
-
-
-
-
-
£28,266,289
251,768
£112.27
-
-
-
-
-
-
£60,347,532
570,000
£105.87
-
-
-
-
-
-
CHF 2,119,970
20,000
CHF 106.00
-
-
-
-
-
-
$4,874,962
45,810
$106.42
-
-
-
-
-
-
$66,723,156
658,978
$101.25
-
-
-
-
-
-
-
-
-
-
-
-
$16,113,116
14,784,418
$1.09
$1,497,084
1,473,953
$1.02
$7,954,816
7,435,689
$1.07
-
-
-
Lazard Opportunities Fund - EURO
Hedged Institutional Accumulating Class
€ 926,205
935,046
€ 0.99
€ 1,094,034
1,033,096
€ 1.06
€ 1,430,844
1,315,857
€ 1.09
Lazard Opportunities Fund - EURO
Hedged Institutional Accumulating EA
Class
€ 996,576
982,159
€ 1.01
€ 3,392,780
3,156,618
€ 1.07
€ 4,189,420
3,835,362
€ 1.09
Lazard Opportunities Fund - GBP
Institutional Accumulating Class
£192,035
190,671
£1.01
£204,359
190,671
£1.07
£433,203
394,827
£1.10
£11,187,681
10,834,508
£1.03
£23,288,513
21,396,542
£1.09
£21,592,163
19,579,183
£1.10
¥537,226,526
5,674,710
¥94.67
¥573,008,805
5,674,710
¥100.98
-
-
-
Lazard Global Hexagon Equity Fund USD Institutional Accumulating Class
$3,316,573
35,501
$93.42
$2,758,844
27,655
$99.76
$98,617
1,000
$98.62
Lazard Global Hexagon Equity Fund USD Institutional Accumulating EA Class
$6,216,260
64,609
$96.21
$3,828,844
37,572
$101.91
-
-
-
$96,030
1,002
$95.87
$7,776,163
76,938
$101.07
$1,988,870
20,086
$99.02
€ 49,194,221
519,053
€ 94.78
€ 93,855,794
929,544
€ 100.97
€ 42,690,781
429,495
€ 99.40
Lazard Emerging Markets Debt Blend
Fund - EURO Hedged Institutional
Accumulating Class
Lazard Emerging Markets Debt Blend
Fund - EURO Institutional Accumulating
K Class
Lazard Emerging Markets Debt Blend
Fund - EURO Institutional Distributing
K Class Lazard Emerging Markets Debt Blend
Fund - EURO Hedged Accumulating
X Class
Lazard Emerging Markets Debt Blend
Fund - CHF Hedged Institutional
Accumulating Class Lazard Emerging Market Unrestricted
Debt Blend Fund - EURO Institutional
Accumulating K Class
Lazard Emerging Market Unrestricted
Debt Blend Fund - EURO Hedged
Accumulating X Class
Lazard Emerging Market Unrestricted
Debt Blend Fund - GBP Institutional
Accumulating Class
Lazard Emerging Market Unrestricted
Debt Blend Fund - GBP Institutional
Accumulating K Class
Lazard Emerging Market Unrestricted Debt
Blend Fund - CHF Hedged Institutional
Accumulating Class
Lazard Emerging Market Unrestricted
Debt Blend Fund - USD Institutional
Accumulating Class
Lazard Emerging Market Unrestricted
Debt Blend Fund - USD Accumulating
X Class
Lazard Opportunities Fund - USD
Hedged Institutional Accumulating Class Lazard Opportunities Fund - USD
Hedged Institutional Accumulating EA
Class
Lazard Opportunities Fund - GBP
Hedged Institutional Accumulating EA
Class
Lazard Opportunities Fund - YEN
Hedged Institutional Accumulating Class
Lazard Global Hexagon Equity Fund USD Institutional Accumulating L Class
Lazard Global Hexagon Equity Fund EURO Hedged Institutional Accumulating
EA Class
Lazard Global Investment Funds plc
CHF 90.59 CHF 39,750,488
Year ended 31 March 2016
Notes to the Financial Statements (continued)
6. Net Asset Value (continued)
Lazard Global Hexagon Equity Fund EURO Hedged Institutional Accumulating
L Class
Lazard Global Hexagon Equity Fund CHF Hedged Institutional Accumulating
L Class
Lazard Global Hexagon Equity Fund GBP Hedged Institutional Accumulating
EA Class Lazard European Alternative Fund EURO Institutional Accumulating Class
Lazard European Alternative Fund EURO Institutional Accumulating EA
Class*
Lazard European Alternative Fund EURO Institutional Accumulating LP
Class
Lazard European Alternative Fund EURO Institutional Distributing LP Class
Lazard European Alternative Fund EURO Retail Distributing P Class
Lazard European Alternative Fund - USD
Hedged Institutional Accumulating Class
Lazard European Alternative Fund USD Hedged Institutional Accumulating
EA Class*
Lazard European Alternative Fund USD Hedged Institutional Accumulating
LP Class
Lazard European Alternative Fund - USD
Hedged Management Class
Lazard US Fundamental Alternative
Fund - EURO Hedged Institutional
Accumulating EA Class
Lazard US Fundamental Alternative
Fund - USD Institutional Accumulating
Class
Lazard US Fundamental Alternative
Fund - USD Institutional Accumulating
EA Class
Lazard US Fundamental Alternative
Fund - USD Management Class
Number of
Redeemable Net Asset
Participating Value per
Net Asset
shares in Share at
Value at 31 issue at 31 31 March
March 2015 March 2015
2015
€ 291,580
3,063
€ 95.18
€ 24,999,196
247,614
-
-
-
CHF 697,489
-
-
-
-
-
€ 91,143,089
911,515
€ 99.99
-
€ 139,404,374
1,374,832
€ 101.40
€ 32,613,891
321,733
€ 3,465,977
Number of
Redeemable
Participating Net Asset
Net Asset
shares in Value per
Value at 31 issue at 31 Share at 31
March 2014 March 2014 March 2014
€ 100.96
€ 20,164,674
203,729
€ 98.98
6,954 CHF 100.31
CHF 988,001
10,000
CHF 98.80
-
£200,574
2,000
£100.29
-
-
-
-
-
-
-
-
-
-
-
€ 101.37
-
-
-
-
-
-
34,329
€ 100.96
-
-
-
-
-
-
€ 42,144
420
€ 100.34
-
-
-
-
-
-
$1,005,762
10,000
$100.58
-
-
-
-
-
-
$5,307,185
52,124
$101.82
-
-
-
-
-
-
$259,199
2,568
$100.92
-
-
-
-
-
-
$16,860,247
167,128
$100.88
-
-
-
-
-
-
€ 5,345,088
53,750
€ 99.44
-
-
-
-
-
-
$96,216
1,000
$96.22
-
-
-
-
-
-
$5,925,437
61,551
$96.27
-
-
-
-
-
-
$2,795,301
29,000
$96.39
-
-
-
-
-
-
* These EA share classes are now closed to new investors.
See Note 14 for information on the launch and termination dates of the above share classes.
The GBP Institutional Accumulating Class on Lazard Emerging Markets Debt Blend Fund launched on 1 October 2015 and
terminated on 10 December 2015 so therefore there is no Net Asset Value as at 31 March 2016 and it is not shown in the above table.
The information disclosed above in respect of Lazard Opportunities Fund and Lazard Global Hexagon Equity Fund, which are weekly
dealing Funds, is as at 24 March 2016, 27 March 2015 and 28 March 2014.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Number of
Redeemable
Participating
Net Asset
Net Asset
shares in
Value per
Value at 31 issue at 31 Share at 31
March 2016 March 2016 March 2016
55
Notes to the Financial Statements (continued)
7. Exchange Rates
The financial statements are prepared in U.S. Dollars (except for financial statements of Lazard Opportunities Fund which are
prepared in GBP and Lazard European Alternative Fund which are prepared in EUR). The following year end exchange rates have
been used to translate assets and liabilities in other currencies to U.S. Dollars:
LAZARD GLOBAL INVESTMENT FUNDS PLC
Exchange Rates against US Dollar
56
31 March 2016
31 March 2015
Argentine Peso
14.5550
-
Armenian Dram
-
470.3837
Australian Dollar
1.3000
1.3090
Brazilian Real
3.5440
3.1961
British Pound
0.6957
0.6736
Canadian Dollar
1.2935
1.2665
668.8600
623.4000
Chilean Peso
Chinese Yuan
Colombian Peso
Costa Rican Colon
6.4676
6.1996
3,003.2700
2,597.7250
-
533.2200
Czech Koruna
23.7362
25.6574
Danish Krone
6.5380
6.9560
-
44.7050
Dominican Peso
Egyptian Pound
-
7.6301
0.8775
0.9311
Ghanaian Cedi
-
3.8300
Hong Kong Dollar
-
7.7531
Hungarian Forint
275.7054
279.1900
Euro
Indian Rupee
Indonesian Rupiah
66.2225
62.5813
13,260.0000
13,075.0000
Israeli Shekel
-
3.9767
Japanese Yen
112.3950
119.9250
Kazakhstani Tenge
-
185.8050
Kenyan Shilling
-
92.4000
1,143.6000
1,109.4500
Korean Won
Malaysian Ringgit
Mexican Peso
3.9015
3.7035
17.1378
15.2343
New Romanian Leu
3.9220
4.1101
New Russian Ruble
66.8600
58.1273
New Taiwan Dollar
32.1840
31.2900
New Zealand Dollar
-
1.3335
199.0200
199.0500
Norwegian Krone
8.2713
8.0591
Peruvian Nouveau Sol
3.3297
3.0985
46.0450
44.7000
Nigerian Naira
Philippine Peso
Polish Zloty
Serbian Dinar
Singapore Dollar
3.7219
3.7915
107.7100
111.9000
1.3466
1.3717
South African Rand
14.7080
12.1163
South Korean Won
1,143.6000
-
Sri Lankan Rupee
-
133.1750
Swedish Krona
8.1067
8.6241
Swiss Franc
0.9577
0.9713
Thailand Baht
35.1800
32.5400
Turkish Lira
2.8157
2.5965
Ugandan Shilling
-
2,985.0000
Uruguayan Peso
-
25.6700
Zambian Kwacha
-
7.6400
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
7. Exchange Rates (continued)
Exchange Rates against GBP Pound
31 March 2016
31 March 2015
Australian Dollar
1.8684
1.9432
Canadian Dollar
1.8591
1.8801
Danish Krone
9.3970
-
Euro
1.2613
1.3822
Hong Kong Dollar
Japanese Yen
Singapore Dollar
11.1485
11.5094
161.5453
178.0288
1.9355
-
South African Rand
21.1398
17.9866
Swedish Krona
11.6518
12.8024
1.4373
1.4845
US Dollar
The following average exchange rates have been used to translate Statement of Comprehensive Income and Statement of Changes in
Net Assets attributable to Redeemable Participating Shareholders balances in other currencies to GBP:
Average Exchange Rates
against GBP Pound
US Dollar
31 March 2016
31 March 2015
1.5074
1.6098
The following year end exchange rates have been used to translate assets and liabilities in other currencies to EUR:
Exchange Rates against EUR
31 March 2016
British Pound
0.7928
Danish Krone
7.4503
Norwegian Krone
9.4255
Swedish Krona
9.2380
Swiss Franc
1.0913
US Dollar
1.1396
The following average exchange rates have been used to translate the Statement of Comprehensive Income and Statement of Changes
in Net Assets attributable to Redeemable Participating Shareholders balances in other currencies to EUR:
Average Exchange Rates
against EUR
US Dollar
31 March 2016
1.1040
8. Cash and Cash Equivalents
Cash and cash equivalents as at 31 March 2016 and 31 March 2015 comprises current deposits with banks. The Depositary may
utilise one or more sub-custodians for holding cash of the Funds. Substantially all of the cash, bank overdrafts and deposits, including
overnight deposits are held with the Depositary’s global sub-custodian, State Street Bank and Trust Company. Cash collateral is held
with Bank of America Corporation, Barclays Bank Plc, JP Morgan Chase and Company and Morgan Stanley and is subject to the
counterparty risk of those entities. Cash is also deposited by or on behalf of the Funds for initial margin purposes with brokers for
options, open futures contracts and contracts for difference, this cash is held with Deutsche Bank AG, JP Morgan Chase and Company,
Merrill Lynch International and Morgan Stanley at the year end. (See Note 9, Counterparty/Issuer Risk and Credit Risk).
9. Risk Management Policies and Procedures
The Funds’ investment activities expose them to the various types of risk which are associated with the financial instruments and
markets in which they invest. The following information is not intended to be a comprehensive summary of all risks and investors
should refer to the Prospectus and Supplements for a more detailed discussion of the risks inherent in investing in the Funds.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
The following year end exchange rates have been used to translate assets and liabilities in other currencies to GBP:
57
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
LAZARD GLOBAL INVESTMENT FUNDS PLC
The Directors review reports from the Investment Manager on a quarterly basis and more frequently as required in relation to the
Funds’ performance and risk profile. The Investment Manager is also responsible for ensuring that the Funds are managed within the
terms of the Funds’ investment guidelines and limits set out in the Prospectus’ and Supplements as well as the Investment Manager’s
own internal investment guidelines and limits. The Directors delegate to the Manager who in turn delegates to the Investment
Manager responsibility for the monitoring and managing of risk for the Funds.
58
There is a Risk Management Team responsible for overseeing the risk management process of the Investment Manager. The Head of
Risk, reports into the Oversight Committee. The Oversight Committee is the central management body for the Investment Manager’s
investment platform. It reviews and monitors all Funds to ensure that they remain consistent with their stated goals and objectives
in terms of product characteristics, performance and risk, meaning that the Funds are managed in line with client expectations and
their legal and constitutional regulations. There have been no material updates in the risk management process since 31 March 2015.
The following paragraphs outline procedures undertaken to manage the market, credit and liquidity risks of the Funds. These are
consistent with the risks that existed at 31 March 2015.
Market Risk
Market risk arises mainly from uncertainty about future values of financial instruments held specifically from price, currency and
interest rate movements. It represents the potential loss the Funds might suffer through holding market positions in the face of
market movements.
The global exposure will be calculated using an advanced risk measurement approach. The investment management team will use
value-at-risk as an integral part of their ongoing monitoring and management of the Funds' market risk.
Each Fund’s global exposure will be calculated daily by way of an absolute value-at-risk (“VaR”) model using the Bloomberg Alpha
Portfolio Analytics and Risk application. Bloomberg Alpha is used for all the required calculations and reporting for VaR. VaR is a
category of risk measures which, unlike market risk metrics such as the Greeks, duration and convexity, can be applied to all asset
types and can cover all sources of market risk. VaR summarizes the maximum expected loss over a target horizon with a given level
of confidence. VaR is a useful measure in that it can summarize the maximum loss in a single monetary value or a percentage of the
overall portfolio. The Investment Manager will also be using Algorithmics system for VaR calculations and risk analyses. Analytics
from Algorithmics are also used in Bloomberg Alpha. The VaR model will use the following quantitative standards:
• The confidence level should be 99%;
• The holding period should be 1 trading day; and
• The historical observation period should not be less than 1 year; however, a shorter observation period may be used if justified,
for example, as a result of significant recent changes in price volatility.
There are three popular approaches for calculating VaR, namely Historical Simulation, analytical Variance-Covariance method and
Monte Carlo Simulation. The investment management team uses the simple yet powerful approach of the historical simulation
method which assumes that historical return distribution is a good representation of future returns. The Investment Manager believes
that this method is one of the more reliable methods as it requires making the minimum number of assumptions. It also incorporates
the volatilities and correlations explicitly by using the real market returns. As the VaR reports generated by Bloomberg Alpha are
based on 99% confidence interval and 1 day holding period, the 20% 20-day limit is scaled down according to appropriate factors. The
absolute 1-day 99% VaR limit is 20% / sqrt(20) = 4.47%.
In case the VaR for certain holdings does not get calculated by the system due to data errors or modelling limitation, the Risk
Management Team will assess the VaR impact of those holdings and incorporate that figure as an add-on to the VaR. This approach
may ignore possible diversification benefits, and will provide a conservative VaR level for the portfolio.
Stress testing will be performed on a monthly and as required basis. Back testing results will be recorded daily and results analysed
quarterly or semi-annually. The data in the VaR model is updated on a daily basis and contains one year’s market data.
Bloomberg Alpha is used for stress testing to evaluate the market risk inherent in the portfolio under abnormal market conditions. The
risk methodology used in stress tests is similar to the one used in calculating VaR. The portfolio Profit and Loss (P&L) or % return
is generated by calculating a projected portfolio market value, based on a change in Risk Factors. To generate the market value, a “Full
Valuation Methodology” is used to theoretically value every security within the Fund or the sensitivities to rates and spreads are used
to assess the impact of larger market moves.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Market Risk (continued)
Since VaR cannot incorporate all possible scenarios, stress testing helps capture sudden and dramatic changes in the portfolio’s value
given atypical market circumstances. Stress testing is utilised monthly and on an ad hoc basis. Daily monitoring of the sensitivities to
interest rates, FX and credit spreads gives a better picture of how the portfolio might react to sudden market moves.
• the models are based on historical data and cannot take account of the fact that future market price movements, correlations
between markets and levels of market liquidity in conditions of market stress may bear no relation to historical patterns;
• the market price risk information is a relative estimate of risk rather than a precise and accurate number;
• the market price information represents a hypothetical outcome and is not intended to be predictive (in the case of probabilitybased methods, such as VaR, profits and losses are almost certain to exceed the reported amount with a frequency depending on
the confidence interval chosen); and
• future market conditions could vary significantly from those experienced in the past.
The tables below for 31 March 2016 and 31 March 2015 detail the lowest, the highest and the average utilisation of the daily VaR
limit calculated during the year and the VaR limit of each of the Funds.
For the year ended 31 March 2016
Portfolio
Lazard Emerging Markets Bond Fund
Min
VaR
14.32%
Max
VaR
25.12%
Average
VaR
18.62%
VaR
Limit
4.47%
Lazard Emerging Markets Local Debt Fund
29.31%
38.35%
35.64%
4.47%
4.70%
22.15%
13.01%
4.47%
23.92%
43.35%
31.41%
4.47%
20.13%
37.14%
25.16%
4.47%
Lazard Emerging Markets Total Return Debt Fund
Lazard Emerging Markets Allocation Fund
(VaR until 10-11-2015)
Lazard Emerging Markets Debt Blend Fund
Lazard Emerging Markets Debt Unrestricted Blend Fund
(VaR since 08-12-2015)
12.53%
30.57%
25.78%
4.47%
Lazard Opportunities Fund
12.36%
89.67%
23.11%
4.47%
Lazard Global Hexagon Equity Fund
Lazard European Alternative Fund
(VaR since 28-09-2015)
Lazard US Fundamental Alternative Fund
(VaR since 12-01-2016)
11.23%
40.41%
27.76%
4.47%
4.60%
17.30%
11.27%
4.47%
14.09%
23.27%
18.51%
4.47%
Portfolio
Lazard Emerging Markets Bond Fund
Min
VaR
12.75%
Max
VaR
25.50%
Average
VaR
17.67%
VaR
Limit
4.47%
Lazard Emerging Markets Local Debt Fund
20.36%
36.91%
28.86%
4.47%
6.71%
20.58%
11.86%
4.47%
Lazard Emerging Markets Allocation Fund
20.13%
31.77%
25.06%
4.47%
Lazard Emerging Markets Debt Blend Fund
13.65%
24.61%
18.57%
4.47%
Lazard Opportunities Fund
Lazard Global Hexagon Equity Fund
(VaR since 12-01-2013)
4.92%
10.51%
94.41%
64.21%
21.03%
29.53%
4.47%
4.47%
For the year ended 31 March 2015
Lazard Emerging Markets Total Return Debt Fund
The average level of leverage figures provided below are calculated as the sum of the absolute value of notionals of the derivatives used
as is required by the UCITS Regulations. This figure does not take into account any netting and hedging arrangements that the Funds
may have in place at any time even though these netting and hedging arrangements are used for risk reduction purposes. As these
netting and hedging arrangements, if taken into account, may reduce the level of leverage, this calculation may not provide an accurate
measure of the Funds’ actual leverage position.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Some limitations of VaR are:
59
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Market Risk (continued)
Below is the daily average level of leverage for each Fund during the one year period ending 31 March 2016 and 31 March 2015.
Level of leverage
Fund Name
Average
31 March 2016
Average
31 March 2015
99%
133%
98%
158%
LAZARD GLOBAL INVESTMENT FUNDS PLC
Lazard Emerging Markets Bond Fund
Lazard Emerging Markets Local Debt Fund
60
156%
196%
Lazard Emerging Markets Allocation Fund
Lazard Emerging Markets Total Return Debt Fund
113%*
126%
Lazard Emerging Markets Debt Blend Fund
100%
107%
Lazard Emerging Markets Debt Unrestricted Blend Fund
* closed 10-11-2015
101%*
-
Lazard Opportunities Fund
314%
381%
Lazard Global Hexagon Equity Fund
359%
380%
Lazard European Alternative Fund
84%*
-
* inception 28-09-2015
140%*
-
* inception 04-01-2016
Lazard US Fundamental Alternative Fund
* inception 08-12-2015
(i) Market Price Risk
Market price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to
the individual financial instrument or its issuer, or factors affecting similar financial instruments traded in the market. The Funds are
exposed to market price risk arising from its investments in securities. By diversifying the portfolio, the risk that a price change of a
particular investment will have a material impact on the Funds is minimised. The Investment Manager manages the Funds’ market risk
on a daily basis in accordance with the respective Fund’s investment objective, policies and core philosophy. The core philosophy of total
performance measurement entails the active management of return, risk and cost. Relative-to-benchmark risk is controlled through
the construction of diversified portfolios where exposures to certain market features (such as capitalisation or industry) are limited. As
at 31 March 2016 and 31 March 2015 all of the securities (excluding derivatives) were designated at fair value through profit or loss.
Refer to the Portfolio of Investments on pages 82 to 113 for details of the fair value of the securities held on each Fund.
(ii) Foreign Currency Risk
The Funds may invest in securities denominated in currencies other than its functional currency (or, indeed, the currency of the investor).
Furthermore, the Funds may invest in forward foreign currency exchange contracts in currencies for the purpose of implementing
investment views as well as hedging. Consequently, the Funds are exposed to risks that the exchange rate of its reporting currency
relative to other currencies may change in a manner that has an adverse effect on the value of the portion of a Fund's assets that are
denominated in currencies other than its own currency. Currencies may also move in such a way as to cause losses on currency forward
foreign currency exchange contracts.
For portfolios in which currency risk is hedged out, the currency risk is managed by regular rebalancing of the forward foreign currency
exchange contracts to maintain zero (or close to zero) currency exposure. For those portfolios for which currency exposure is a critical
source of return, exposures are managed relative to the appropriate benchmark. For other portfolios, there is no explicit currencymanagement policy.
The tables immediately below provide the exposure to different currencies as at 31 March 2016 and 31 March 2015:
Lazard Emerging Markets Bond Fund
Euro
2016 Net Monetary Assets
USD
20,318
2015 Net Monetary Assets
USD
(6,383)
Lazard Emerging Markets Bond Fund
Euro
20,318
Lazard Emerging Markets Local Debt Fund
Argentine Peso
2016 Net Monetary Assets
USD
54,600
(6,383)
Lazard Emerging Markets Local Debt Fund
Argentine Peso
2015 Net Monetary Assets
USD
-
Brazilian Real
33,696,460
Brazilian Real
British Pound
1,401
British Pound
(19,115)
Chilean Peso
958,203
Chilean Peso
1,047,635
945,028
Chinese Yuan
Chinese Yuan
Colombian Peso
Lazard Global Investment Funds plc
17,224,606
Colombian Peso
25,625,414
968,209
19,216,041
Year ended 31 March 2016
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Market Risk (continued)
(ii) Foreign Currency Risk (continued)
2016 Net Monetary Assets
USD
49,115
Hungarian Forint
16,198,986
Indian Rupee
2,375,746
Lazard Emerging Markets Local Debt Fund
(continued)
Euro
2015 Net Monetary Assets
USD
(12,274)
Hungarian Forint
17,656,197
Indian Rupee
(24,278)
Indonesian Rupiah
27,785,042
Indonesian Rupiah
23,897,776
Malaysian Ringgit
20,742,868
Malaysian Ringgit
19,287,809
Mexican Peso
22,887,788
Mexican Peso
17,631,859
New Romanian Leu
5,536,168
New Romanian Leu
5,661,273
New Russian Ruble
18,381,030
New Russian Ruble
10,530,350
New Taiwan Dollar
10,219
New Taiwan Dollar
Nigerian Naira
79,770
Nigerian Naira
1,400,916
1,861,419
Peruvian Nouveau Sol
3,500,096
Peruvian Nouveau Sol
Philippine Peso
1,513,286
Philippine Peso
Polish Zloty
22,432,862
Serbian Dinar
320
Singapore Dollar
-
-
1,862,296
Polish Zloty
20,735,841
Serbian Dinar
-
Singapore Dollar
11,516
South African Rand
23,812,679
South African Rand
26,153,269
Thailand Baht
14,849,857
Thailand Baht
16,330,495
Turkish Lira
22,874,460
Turkish Lira
21,178,857
255,910,590
Lazard Emerging Markets Total Return Debt Fund
Australian Dollar
2016 Net Monetary Assets
USD
1,378,849
231,001,505
Lazard Emerging Markets Total Return Debt Fund
Australian Dollar
2015 Net Monetary Assets
USD
(909,579)
Brazilian Real
12,361,053
Brazilian Real
19,174,735
British Pound
6,948
British Pound
(15,876)
Canadian Dollar
(28,084)
790,927
Canadian Dollar
78,222
Chilean Peso
-
Chilean Peso
Colombian Peso
-
Colombian Peso
Euro
Indian Rupee
Indonesian Rupiah
Japanese Yen
Malaysian Ringgit
Mexican Peso
12,816,328
227,522
(1,123)
(831)
239,512
Euro
(7,822,418)
Indian Rupee
390,154
Indonesian Rupiah
302,654
Japanese Yen
83,041
-
Malaysian Ringgit
(2,771)
-
Mexican Peso
422,507
New Romanian Leu
216
New Romanian Leu
206
New Russian Ruble
(130,985)
New Russian Ruble
-
New Taiwan Dollar
(391,356)
New Taiwan Dollar
Nigerian Naira
(45,912)
Nigerian Naira
Polish Zloty
633,719
Polish Zloty
Serbian Dinar
Singapore Dollar
South African Rand
Swiss Frank
Thailand Baht
Turkish Lira
1,359
63,149
6
(50,965)
-
27
388,814
Serbian Dinar
2,099
Singapore Dollar
(436,378)
South African Rand
961,996
Swiss Frank
260,339
-
Thailand Baht
151,184
Turkish Lira
26,946,199
13,953,089
Lazard Emerging Markets
Allocation Fund
Brazilian Real
British Pound
Canadian Dollar
Chilean Peso
Lazard Global Investment Funds plc
2015 Net
2015 Net 2015 Net NonMonetary Assets Monetary Assets Financial Assets
USD
USD
USD
162,302
1,102,190
1,264,492
(170,146)
121,933
(48,213)
242
53,223
53,465
1,887
-
1,887
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Lazard Emerging Markets Local Debt Fund
(continued)
Euro
61
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Market Risk (continued)
(ii) Foreign Currency Risk (continued)
LAZARD GLOBAL INVESTMENT FUNDS PLC
2015 Net
2015 Net 2015 Net NonLazard Emerging Markets
Monetary Assets Monetary Assets Financial Assets
USD
USD
Allocation Fund (continued)
USD
Chinese Yuan
1,670
1,670
62
Colombian Peso
1,434
-
Dominican Peso
971
-
971
Egyptian Pound
1,192
-
1,192
Euro
4,477
-
4,477
Hong Kong Dollar
9,599
3,137,195
3,146,794
Hungarian Forint
141,238
173,504
314,742
551
-
551
Indonesian Rupiah
102,948
831,613
934,561
Israeli Shekel
100,079
-
100,079
Japanese Yen
1,944
-
1,944
(8,432)
-
(8,432)
1,969,361
Indian Rupee
Kazakhstani Tenge
Korean Won
12,827
1,956,534
Kuwaiti Dinar
(2,572)
-
(2,572)
Malaysian Ringgit
43,107
125,129
168,236
1,058,687
Mexican Peso
429,357
629,330
New Romanian Leu
164,363
-
164,363
New Taiwan Dollar
(11,365)
2,106,859
2,095,494
Philippine Peso
Polish Zloty
(121)
-
(121)
(3,120)
109,998
106,878
Serbian Dinar
133,256
-
133,256
South African Rand
178,611
392,970
571,581
Swedish Krona
Thailand Baht
2016 Net Monetary Assets
USD
57,777,375
Chilean Peso
Colombian Peso
Euro
Hungarian Forint
Indian Rupia
Indonesian Rupiah
Kenyan Shilling
458,325
25,435,393
6,337,515
36,697,185
23,062
62,522,122
-
189
58,961
59,150
3,180
125,336
128,516
(5,121)
792,321
787,200
Ugandan Shilling
Uruguayan Peso
149,608
-
149,608
67,185
-
67,185
Zambian Kwacha
21,775
-
21,775
1,533,115
11,717,096
13,250,211
Turkish Lira
Lazard Emerging Markets Debt Blend Fund
Brazilian Real
1,434
Lazard Emerging Markets Debt Blend Fund
Brazilian Real
Chilean Peso
2015 Net Monetary Assets
USD
73,396,364
663,245
Colombian Peso
48,788,000
Euro
(2,740,951)
Hungarian Forint
35,718,630
Indian Rupia
Indonesian Rupiah
Kenyan Shilling
65,788,611
1
Malaysian Ringgit
45,365,362
Malaysian Ringgit
71,849,112
Mexican Peso
57,094,145
Mexican Peso
78,703,606
New Romanian Leu
6,849,776
New Romanian Leu
12,195,683
New Russian Ruble
45,363,373
New Russian Ruble
34,812,634
Nigerian Naira
-
Nigerian Naira
6,290,775
4,276,253
Peruvian Nouveau Sol
5,019,530
Peruvian Nouveau Sol
Philippine Peso
2,925,121
Philippine Peso
3,525,146
Polish Zloty
49,572,297
Polish Zloty
74,836,299
South African Rand
45,297,158
South African Rand
69,679,969
Swiss Frank
1,482,756
Swiss Frank
Thailand Baht
27,135,767
Thailand Baht
41,854,280
Turkish Lira
Turkish Lira
517,210,542
Lazard Global Investment Funds plc
537,248
53,096,474
71,428,829
702,845,928
Year ended 31 March 2016
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Market Risk (continued)
(ii) Foreign Currency Risk (continued)
2016 Net Monetary Assets
USD
20,400,664
British Pound
15,088
Chilean Peso
142,885
Colombian Peso
9,018,853
Euro
4,364,067
Hungarian Forint
12,554,894
Indian Rupee
7,099
Indonesian Rupiah
21,787,894
Malaysian Ringgit
16,511,279
Mexican Peso
20,225,898
New Romanian Leu
3,048,245
New Russian Ruble
15,654,931
Peruvian Nouveau Sol
1,900,013
Philippine Peso
857,759
Polish Zloty
17,816,791
South African Rand
15,966,375
Swiss Franc
71,763
Thailand Baht
9,385,366
Turkish Lira
15,383,576
185,113,440
Lazard Opportunities Fund
Australian Dollar
Canadian Dollar
Danish Krone
Euro
Hong Kong Dollar
Japanese Yen
Singapore Dollar
Swedish Krona
US Dollar
South African Rand
Lazard Global Hexagon
Equity Fund
Australian Dollar
2016 Net
2016 Net 2016 Net NonMonetary Assets Monetary Assets Financial Assets
GBP
GBP
GBP
255,888
-
255,888
66
-
66
132,800
83,758
216,558
-
-
-
896,745
-
896,745
-
-
-
(268)
-
(268)
1,291,284
150,550
1,441,834
112,036
-
112,036
2,688,551
234,308
2,922,859
2016 Net
2016 Net 2016 Net NonMonetary Assets Monetary Assets Financial Assets
USD
USD
USD
(175,609)
1,031,745
856,136
Lazard Opportunities Fund
Australian Dollar
Canadian Dollar
Danish Krone
Euro
Hong Kong Dollar
Japanese Yen
Swedish Krona
Singapore Dollar
US Dollar
South African Rand
Lazard Global Hexagon
Equity Fund
Australian Dollar
2015 Net 2015 Net Non2015 Net
Monetary Assets Monetary Assets Financial Assets
GBP
GBP
GBP
(168,806)
207,597
38,791
261,144
96,263
-
-
357,407
-
510,241
164,763
675,004
(12,063)
50,127
38,064
1,969,384
209,222
2,178,606
3,033
113,716
116,749
3
-
3
5,441,350
3,913,341
9,354,691
179,218
-
179,218
8,183,504
4,755,029
12,938,533
2015 Net 2015 Net Non2015 Net
Monetary Assets Monetary Assets Financial Assets
USD
USD
USD
(675,350)
7,082,423
6,407,073
Brazilian Real
(253,311)
-
(253,311)
Brazilian Real
559,282
4,986,372
British Pound
(698,032)
-
(698,032)
British Pound
949,038
-
949,038
-
-
-
95,309
5,196,227
5,291,536
(125,199)
Canadian Dollar
Canadian Dollar
5,545,654
Czech Koruna
(46,905)
-
(46,905)
Czech Koruna
(125,199)
-
Danish Krone
(405,565)
2,383,964
1,978,399
Danish Krone
1,050
-
1,050
Euro
(821,335)
12,677,537
11,856,202
(3,382,758)
15,190,293
11,807,535
Euro
Hong Kong Dollar
-
-
-
Hong Kong Dollar
(2,255)
3,709,628
3,707,373
Israeli Shekel
-
-
-
Israeli Shekel
(20,407)
1,585,251
1,564,844
Japanese Yen
Japanese Yen
12,370,124
(18,900)
-
(18,900)
(46,397)
12,416,521
Malaysian Ringgit
162
-
162
Malaysian Ringgit
-
-
-
Norwegian Krone
(12,091)
604,503
592,412
Norwegian Krone
3
-
3
-
-
-
30,620
3,806,497
3,837,117
Philippine Peso
Lazard Global Investment Funds plc
Philippine Peso
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Lazard Emerging Markets Debt Unrestricted
Blend Fund
Brazilian Real
63
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Market Risk (continued)
(ii) Foreign Currency Risk (continued)
LAZARD GLOBAL INVESTMENT FUNDS PLC
Lazard Global Hexagon
Equity Fund (continued)
64
2016 Net
2016 Net 2016 Net NonMonetary Assets Monetary Assets Financial Assets
USD
USD
USD
Lazard Global Hexagon
Equity Fund (continued)
Singapore Dollar
(21,386)
-
(21,386)
Singapore Dollar
South African Rand
(58,946)
986,551
927,605
South African Rand
Swedish Krona
(46,509)
-
(46,509)
Swedish Krona
13,636
676,082
689,718
Swiss Frank
Swiss Frank
Thailand Baht
-
-
-
Thailand Baht
Turkish Lira
-
-
-
Turkish Lira
(2,544,791)
18,360,382
15,815,591
2015 Net 2015 Net Non2015 Net
Monetary Assets Monetary Assets Financial Assets
USD
USD
USD
-
-
-
185,811
7,355,828
7,541,639
(341,962)
-
(341,962)
68,164
5,214,606
5,282,770
(521,397)
2,691,601
2,170,204
-
3,833,950
3,833,950
(3,226,448)
73,069,197
69,842,749
2016 Net
2016 Net 2016 Net NonLazard European Alternative Monetary Assets Monetary Assets Monetary Assets
EUR
EUR
Fund
EUR
British Pound
(1,465,994)
–
(1,465,994)
Danish Krone
439,612
10,126,906
10,566,518
Norwegian Krone
135,895
–
135,895
86,405
4,367,423
4,453,828
Swedish Krona
Swiss Franc
(68,408)
–
(68,408)
(614,336)
2,833,451
2,219,115
(1,486,826)
17,327,780
15,840,954
US Dollar
Lazard US Fundamental
Alternative Fund
2016 Net Monetary Assets
USD
Canadian Dollar
Euro
(784)
178,885
178,101
(iii) Interest Rate Risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
prevailing interest rates. The Funds are exposed to interest rate risk through investments in securities with fixed and floating rates of
interest, held within the Funds and their respective cash balances. The Investment Manager manages the Funds’ interest rate risk on a
daily basis in accordance with the respective Fund’s investment objective, policies and core philosophy.
The interest rate profile of the financial assets and liabilities of the Funds at 31 March 2016 and 31 March 2015 was as follows:
2016
Lazard Emerging Markets Bond Fund
Financial assets at fair value through profit or loss
Up to 1 year
1 - 5 years
Over 5 years
Non-Interest
Bearing
Total
USD
USD
USD
USD
USD
16,632,900
222,107
2,294,586
14,096,503
19,704
Financial liabilities at fair value through profit or loss
-
-
-
(439)
(439)
Other net receivables
-
-
-
222,167
222,167
222,107
2,294,586
14,096,503
241,432
16,854,628
Up to 1 year
USD
1 - 5 years
USD
Over 5 years
USD
Non-Interest
Bearing
USD
Total
USD
Total Net Assets
Lazard Emerging Markets Local Debt Fund
5,005,391
92,439,446
152,050,618
2,132,649
251,628,104
Financial liabilities at fair value through profit or loss
Financial assets at fair value through profit or loss
-
-
-
(2,302,672)
(2,302,672)
Other net receivables
-
-
-
5,259,395
5,259,395
5,005,391
92,439,446
152,050,618
5,089,372
254,584,827
Total Net Assets
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Market Risk (continued)
(iii) Interest Rate Risk (continued)
Lazard Emerging Markets Total Return Debt Fund
Financial assets at fair value through profit or loss
Up to 1 year
USD
1 - 5 years
USD
Over 5 years
USD
Non-Interest
Bearing
USD
Total
USD
7,193,938
53,054,917
543,075,074
18,451,285
621,775,214
Financial liabilities at fair value through profit or loss
-
-
(5,546,421)
(4,694,940)
(10,241,361)
Other net receivables
-
-
-
5,778,015
5,778,015
7,193,938
53,054,917
537,528,653
19,534,360
617,311,868
Up to 1 year
USD
1 - 5 years
USD
Over 5 years
USD
Non-Interest
Bearing
USD
Total
USD
Total Net Assets
Lazard Emerging Markets Debt Blend Fund
9,817,284
302,231,818
981,278,399
9,963,867
1,303,291,368
Financial liabilities at fair value through profit or loss
Financial assets at fair value through profit or loss
-
-
-
(1,723,134)
(1,723,134)
Other net receivables
-
-
-
18,927,368
18,927,368
9,817,284
302,231,818
981,278,399
27,168,101
1,320,495,602
Up to 1 year
USD
1 - 5 years
USD
Over 5 years
USD
Non-Interest
Bearing
USD
Total
USD
468,039,652
Total Net Assets
Lazard Emerging Markets Debt Unrestricted Blend Fund
6,299,326
100,010,824
356,552,136
5,177,366
Financial liabilities at fair value through profit or loss
Financial assets at fair value through profit or loss
-
-
-
(796,263)
(796,263)
Other net receivables
-
-
-
10,498,058
10,498,058
6,299,326
100,010,824
356,552,136
14,879,161
477,741,447
Up to 1 year
GBP
1 - 5 years
GBP
Over 5 years
GBP
Non-Interest
Bearing
GBP
Total
GBP
Total Net Assets
Lazard Opportunities Fund
10,453,400
2,481,213
1,263,049
3,109,186
17,306,848
Financial liabilities at fair value through profit or loss
Financial assets at fair value through profit or loss
-
-
-
(136,300)
(136,300)
Other net receivables
-
-
-
131,000
131,000
10,453,400
2,481,213
1,263,049
3,103,886
17,301,548
Up to 1 year
USD
1 - 5 years
USD
Over 5 years
USD
Non-Interest
Bearing
USD
Total
USD
Total Net Assets
Lazard Global Hexagon Equity Fund
43,145,975
-
-
28,630,597
71,776,572
Financial liabilities at fair value through profit or loss
Financial assets at fair value through profit or loss
-
-
-
(3,359,119)
(3,359,119)
Other net payables
-
-
-
(2,757,018)
(2,757,018)
43,145,975
-
-
22,514,460
65,660,435
Lazard European Alternative Fund
Up to 1 year
EUR
1 - 5 years
EUR
Over 5 years
EUR
Non-Interest
Bearing
EUR
Total
EUR
Financial assets at fair value through profit or loss
Total Net Assets
210,348,699
-
-
70,938,384
281,287,083
Financial liabilities at fair value through profit or loss
-
-
-
(3,333,078)
(3,333,078)
Other net receivables
-
-
-
9,278,310
9,278,310
210,348,699
-
-
76,883,616
287,232,315
Total Net Assets
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
2016 (continued)
65
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Market Risk (continued)
(iii) Interest Rate Risk (continued)
2016 (continued)
Lazard US Fundamental Alternative Fund
LAZARD GLOBAL INVESTMENT FUNDS PLC
Financial assets at fair value through profit or loss
66
Up to 1 year
USD
1 - 5 years
USD
Over 5 years
USD
Non-Interest
Bearing
USD
Total
USD
13,896,955
12,912,743
-
-
984,212
Financial liabilities at fair value through profit or loss
-
-
-
(655,515)
(655,515)
Other net receivables
-
-
-
1,666,512
1,666,512
12,912,743
-
-
1,995,209
14,907,952
Up to 1 year
1 - 5 years
Over 5 years
Non-Interest
Bearing
Total
USD
USD
USD
USD
USD
15,978,856
Total Net Assets
2015
Lazard Emerging Markets Bond Fund
72,498
1,791,938
14,114,099
321
Financial liabilities at fair value through profit or loss
Financial assets at fair value through profit or loss
-
-
-
(6,704)
(6,704)
Other net receivables
-
-
-
219,049
219,049
72,498
1,791,938
14,114,099
212,666
16,191,201
Up to 1 year
USD
1 - 5 years
USD
Over 5 years
USD
Non-Interest
Bearing
USD
Total
USD
238,905,431
Total Net Assets
2015 (continued)
Lazard Emerging Markets Local Debt Fund
17,800,761
101,933,898
118,458,673
712,099
Financial liabilities at fair value through profit or loss
Financial assets at fair value through profit or loss
-
-
-
(981,590)
(981,590)
Other net receivables
-
-
-
10,246,848
10,246,848
17,800,761
101,933,898
118,458,673
9,977,357
248,170,689
Lazard Emerging Markets Total Return Debt Fund
Up to 1 year
USD
1 - 5 years
USD
Over 5 years
USD
Non-Interest
Bearing
USD
Total
USD
Financial assets at fair value through profit or loss
Total Net Assets
187,478,627
153,736,692
662,930,554
5,604,935
1,009,750,808
Financial liabilities at fair value through profit or loss
-
-
-
(16,811,190)
(16,811,190)
Other net receivables
-
-
-
48,161,283
48,161,283
Total Net Assets
187,478,627
153,736,692
662,930,554
36,955,028
1,041,100,901
Lazard Emerging Markets Allocation Fund
Up to 1 year
USD
1 - 5 years
USD
Over 5 years
USD
Non-Interest
Bearing
USD
Total
USD
2,242,882
613,786
720,019
26,931,266
30,507,953
Financial liabilities at fair value through profit or loss
Financial assets at fair value through profit or loss
-
-
-
(233,368)
(233,368)
Other net receivables
-
-
-
499,109
499,109
2,242,882
613,786
720,019
27,197,007
30,773,694
Up to 1 year
USD
1 - 5 years
USD
Over 5 years
USD
Non-Interest
Bearing
USD
Total
USD
Total Net Assets
Lazard Emerging Markets Debt Blend Fund
72,235,290
438,955,748
1,111,346,028
832,711
1,623,369,777
Financial liabilities at fair value through profit or loss
Financial assets at fair value through profit or loss
-
-
-
(3,008,497)
(3,008,497)
Other net receivables
-
-
-
29,054,271
29,054,271
72,235,290
438,955,748
1,111,346,028
26,878,485
1,649,415,551
Total Net Assets
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Market Risk (continued)
Financial assets at fair value through profit or loss
Up to 1 year
GBP
1 - 5 years
GBP
Over 5 years
GBP
Non-Interest
Bearing
GBP
Total
GBP
21,955,829
6,363,556
3,668,076
5,381,116
37,368,577
Financial liabilities at fair value through profit or loss
-
-
-
(3,193,420)
(3,193,420)
Other net receivables
-
-
-
169,474
169,474
21,955,829
6,363,556
3,668,076
2,357,170
34,344,631
Up to 1 year
USD
1 - 5 years
USD
Over 5 years
USD
Non-Interest
Bearing
USD
Total
USD
157,269,827
Total Net Assets
Lazard Global Hexagon Equity Fund
53,175,886
-
-
104,093,941
Financial liabilities at fair value through profit or loss
Financial assets at fair value through profit or loss
-
-
-
(9,205,226)
(9,205,226)
Other net payables
-
-
-
(4,573,405)
(4,573,405)
53,175,886
-
-
90,315,310
143,491,196
Total Net Assets
Credit Risk
Credit risk is the risk that the counterparty or issuer to a financial instrument will fail to discharge an obligation or commitment that
it has entered into with a Fund. The Funds’ main credit risk concentrations arise from trading equity and debt securities, collective
investment schemes and financial derivative instruments ("FDIs") in addition to cash balances held at the Depositary. Refer to the
Portfolio of Investments on pages 82 to 113 for details of the monetary values relating to the above.
All transactions involving transferable securities are settled upon delivery using approved brokers. The risk of default is considered
minimal, as delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase once the
securities have been received by the broker. The trade will fail if either party fails to meet their obligations.
The tables below detail the Portfolio of Investments by rating category for the Funds which invest in fixed-income securities and
money market instruments as at 31 March 2016 and 31 March 2015:
2016
Portfolio by rating category*
Lazard Emerging Markets Lazard Emerging Markets Lazard Emerging Markets Lazard Emerging Markets
Bond Fund
Local Debt Fund
Total Return Debt Fund
Debt Blend Fund
% of Investments
% of Investments
% of Investments
% of Investments
As at 31 March 2016
As at 31 March 2016
As at 31 March 2016
As at 31 March 2016
Lazard Emerging Markets
Debt Unrestricted
Blend Fund
% of Investments
As at 31 March 2016
A rating
7.36
27.58
25.20
15.09
15.18
B rating
79.66
72.42
73.54
83.37
76.40
C rating
7.52
-
0.54
1.04
3.95
No rating
5.46
-
0.72
0.50
4.47
100.00
100.00
100.00
100.00
100.00
Lazard
Opportunities Fund
% of Investments
Portfolio by rating category*
As at 31 March 2016
A rating
75.89
B rating
7.11
C rating
0.15
No rating
16.85
100.00
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
2015 (continued)
Lazard Opportunities Fund
67
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Credit Risk (continued)
Lazard Emerging Markets
Bond Fund
% of Investments
Lazard Emerging Markets
Local Debt Fund
% of Investments
Lazard Emerging Markets
Total Return Debt Fund
% of Investments
Lazard Emerging Markets
Allocation Fund
% of Investments
As at 31 March 2015
As at 31 March 2015
As at 31 March 2015
As at 31 March 2015
A rating
16.52
23.00
10.08
18.01
B rating
71.63
56.01
68.50
25.08
C rating
5.10
-
0.81
-
No rating
6.75
20.99
20.61
56.91
100.00
100.00
100.00
100.00
Lazard Emerging Markets
Debt Blend Fund
% of Investments
Lazard
Opportunities Fund
% of Investments
As at 31 March 2015
As at 31 March 2015
A rating
18.87
40.71
B rating
66.84
11.36
C rating
0.58
4.81
No rating
13.71
43.12
100.00
100.00
2015
LAZARD GLOBAL INVESTMENT FUNDS PLC
Portfolio by rating category*
68
Portfolio by rating category*
Lazard Global Hexagon Equity Fund, Lazard European Alternative Fund and Lazard US Fundamental Alternative Fund are not
included in the above tables as those Funds comprise solely of securities that do not have a credit rating.
Substantially all of the cash and securities held by the Funds are held via the Depositary except for the financial derivative instruments
that are held with counterparties as disclosed on the Portfolio of Investments. State Street Bank and Trust Company act as the Global
Sub-Custodian for the Depositary.
While cash held by the global sub-custodian and the Depositary is identifiable as belonging to the Funds, the Funds will be exposed
to the credit risk of the financial institution where cash is deposited. In the event of insolvency of the financial institution, the Funds
will be treated as a general creditor of the financial institution in relation to cash holdings of the Funds.
In circumstances such as the insolvency of a sub-custodian or registrar, or retro-active application of legislation, the Funds may not, in
all cases, be able to establish title to investments made and may suffer losses as a result. The Funds may find it impossible to enforce
their rights against third parties. In addition, as the Funds may invest in markets where custodial and/or settlement systems are not fully
developed, there is a transaction and custody risk involved in dealing in such markets. In certain circumstances, a Fund may not be able
to recover some of its assets. Such circumstances may include any acts or omissions or the liquidation, bankruptcy or insolvency of a
sub-custodian, retroactive application of legislation and fraud or improper registration of title. The costs borne by a Fund in investing
and holding investments in such markets will generally be higher than in organised securities markets.
The Funds’ securities are always separately identified on the accounting records of State Street Bank and Trust Company, therefore
the rights, with respect to those securities, are preserved. Thus in the event of insolvency or bankruptcy of the Depositary, the Funds’
assets are segregated and protected and this further reduces counterparty risk.
Bankruptcy or insolvency by the Depositary may cause the Funds’ rights with respect to the cash and the securities held by the
Depositary to be delayed or limited. The Funds monitor their risk by monitoring the credit quality and financial position of the
Depositary that the Funds use. The long term credit rating of the parent company of the Depositary and Global Sub-Custodian, State
Street Corporation, is A2 (31 March 2015: A1). The Depositary has a general lien in the normal course of business over the assets of
the Funds.
The extent of the Funds’ exposure to credit risk in respect of the financial statements approximates the carrying value as recorded in
the Statement of Financial Position on pages 29, 30 and 31. There were no past due or impaired assets as of 31 March 2016 and 31
March 2015.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Counterparty/Issuer Risk
• Approved broker selection - the trading system only permits trading with approved brokers. New brokers are added, subject to
a formal review process that includes a review of the broker’s creditworthiness, financial strength, ability to enter into legally
enforceable arrangements and standing in the financial community.
• Broker monitoring - performed through a variety of ongoing activities, including the assessment of certain regulatory filings
and financial statements.
• Measurement and monitoring of counterparty or issuer trade exposure - a daily review of outstanding positions is performed.
A Fund is exposed to a credit risk on the over the counter (“OTC”) counterparties with whom it trades, that these counterparties may
not perform their obligations and that settlement of transactions may not occur. All OTC counterparties must meet the following
criteria as set out in the UCITS Regulations namely:
(i) A credit institution in accordance with Central Bank UCITS Regulations, or
(ii) Have a minimum credit rating of A2 or equivalent, or in the opinion of the Investment Manager, an implied credit minimum
rating of A2 or equivalent.
Exposures to individual counterparties are limited to 10% of Net Asset Value in the case of (i) above and 5% of Net Asset Value in
the case of (ii) above.
The Lazard Opportunities Fund holds a total return swap which can contain (but not exclusively) global convertible and corporate
securities (equity and debt, including fixed and/or floating rate investment grade, high-yield and distressed corporate fixed income
securities); exchange-traded funds (“ETFs”); global equities, government securities, exchange traded notes (“ETNs”); interest rates; global
foreign currencies, 144A securities and Regulation S securities, contracts for differences on equity securities and equity indices. The
risk factors associated with this Fund and the total return swap are included in the prospectus supplement. Deutsche Bank AG acts as
counterparty to the total return swap. On a daily basis, margin is posted between the Fund’s cash account and the counterparty to ensure
that the Fund’s risk exposure to the counterparty (caused by any profit and loss on the swap) is reduced to the extent required by the
Central Bank or the UCITS Regulations.
Cash collateral is held with Bank of America Corporation, Barclays Bank Plc, JP Morgan Chase and Company and Morgan Stanley.
Counterparty cash received by a Fund as collateral for financial derivative instrument transactions is recorded as an asset on the Statement
of Financial Position within “Broker cash held as collateral for financial derivative instrument transactions” and a related liability to repay
the collateral is disclosed within “Broker cash due to counterparties for financial derivative instrument transactions”. Non cash collateral
does not form part of the Net Asset Value of the Fund and is recorded at the base of each relevant Portfolio of Investments for reference
purposes only (please refer to page 106 on the Portfolio of Investments for Lazard Opportunities Fund, page 109 on the Portfolio of
Investments for Lazard Global Hexagon Equity Fund, page 111 on the Portfolio of Investments for Lazard European Alternative Fund
and page 113 on the Portfolio of Investments for Lazard US Fundamental Alternative Fund).
Cash is also deposited by or on behalf of the Funds for initial margin purposes with brokers for options, open futures contracts and
contracts for difference, this cash is held with Deutsche Bank AG, JP Morgan Chase and Company, Merrill Lynch International and
Morgan Stanley at the year end and is subject to the credit risk of Deutsche Bank AG, JP Morgan Chase and Company, Merrill Lynch
International and Morgan Stanley respectively.
Investments pledged by the Funds as collateral are recognised at fair value in the relevant Fund’s Portfolio of Investments and such
investments are referenced accordingly at the base of the Portfolio of Investments. See the following for details of OTC counterparty
exposure for the Funds as at 31 March 2016 and 31 March 2015.
2016
Client cash held
at broker USD
1,500,000
Non-cash
collateral USD
-
Net exposure
USD***
(391,889)
Lazard Emerging Markets Total Return Debt Fund
3,160,000
-
(1,853,468)
Lazard Emerging Markets Total Return Debt Fund
510,000
-
Lazard Emerging Markets Total Return Debt Fund
4,315,000
-
Fund name
Lazard Emerging Markets Local Debt Fund
Lazard Global Investment Funds plc
Counterparty
Credit Rating*
JP Morgan Chase and Company
A3
Bank of America Corporation
A1
(474,303)
Barclays Bank Plc
A2
1,322,737
JP Morgan Chase and Company
A3
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
The Funds are exposed to a credit risk to parties with whom they trade and will bear the risk of settlement default. Counterparty/issuer
risk is monitored and managed by a formal counterparty or issuer exposure management program within the Investment Manager.
The Investment Manager’s approved list of counterparties is generally limited to the most highly rated and recognised dealers in their
sectors. The Investment Manager performs ongoing monitoring of this list. Counterparty/issuer risk is monitored on an ongoing basis
in the following manner:
69
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Counterparty/Issuer Risk (continued)
2016
Lazard Emerging Markets Debt Blend Fund
Client cash held
at broker USD
1,000,000
Non-cash
collateral USD
-
Net exposure
USD***
(85,451)
Barclays Bank Plc
A2
Lazard Emerging Markets Debt Blend Fund
2,040,000
-
78,421
JP Morgan Chase and Company
A3
Lazard Global Hexagon Equity Fund
-
8,543,542
(2,038,150)
JP Morgan Chase and Company
A3
Lazard US Fundamental Alternative Fund
-
3,825,745
149,813
Morgan Stanley
A3
Lazard Opportunities Fund
Client cash held
at broker GBP
-
Non-cash
collateral GBP
7,625,755
Net exposure
GBP***
147,804
Lazard European Alternative Fund
Client cash held
at broker EUR
-
Non-cash
collateral EUR
31,031,629
Net exposure
EUR***
703,685
Client cash held
at broker USD
6,090,000
Non-cash
collateral USD
-
Net exposure
USD***
6,581
2,720,000
-
(613,963)
Lazard Emerging Markets Total Return Debt Fund
2,050,000
-
(3,451,286)
Barclays Bank Plc
A3
Lazard Emerging Markets Total Return Debt Fund
32,755,000
-
(998,485)
JP Morgan Chase and Company
A3
Lazard Emerging Markets Allocation Fund
290,000
-
678
JP Morgan Chase and Company
A3
Lazard Global Hexagon Equity Fund
196,564
25,204,485
(3,477,948)
JP Morgan Chase and Company
A3
Client cash held
at broker GBP
1,109,465
Non-cash
collateral GBP
16,928,425
Net exposure
GBP***
(2,427,648)
LAZARD GLOBAL INVESTMENT FUNDS PLC
Fund name
70
Counterparty
Credit Rating*
Counterparty
Deutsche Bank AG
A2
Counterparty
Merrill Lynch International
A1
2015
Fund name
Lazard Emerging Markets Local Debt Fund
Lazard Emerging Markets Total Return Debt Fund
Lazard Opportunities Fund
Counterparty
JP Morgan Chase and Company
Bank of America Corporation
Counterparty
Deutsche Bank AG
Credit Rating*
A3
Baa2
Credit Rating
A3
* Moody’s credit rating.
** Please see the base of the relevant Portfolio of Investments for the counterparty details relating to all of the derivative contracts
held on the Funds at the year end.
*** The net exposure represents the unrealised of the mark-to-market value with the counterparty as at year end.
The Funds have an ISDA agreement and Credit Support Annex in place with all the counterparties. The Portfolio of Investments
includes details of the open forward foreign currency exchange contracts and the counterparties as at the year end.
Liquidity Risk
The Funds’ assets comprise mainly realisable securities which can be readily sold. The main liability of the Funds is the redemption
of any shares that investors wish to sell. Shareholders have the right to require the Funds to redeem their shares in the Funds on any
business day subject to restrictions set out in the prospectus (Lazard Opportunities Fund and Lazard Global Hexagon Equity Fund are
weekly dealing Funds). If total requests for redemption and/or switching on any dealing day for any Fund exceed 10% of the Net Asset
Value of that Fund, each redemption or switching request in respect of Shares in such Fund may, at the discretion of the Directors,
be reduced pro rata so that the total number of Shares of such Fund for redemption or switching on that dealing day shall not exceed
10% of the Net Asset Value of that Fund. Any redemption or switching request so reduced shall be carried forward to the next dealing
day and effected to subsequent redemption or switching requests on the following dealing day(s). The Funds have the ability to borrow
in the short term to ensure settlement. No such borrowings have arisen during the years ended 31 March 2016 and 31 March 2015.
The Funds’ financial liabilities due for payment within one month relate in the most part, to security purchases awaiting settlements,
redemptions of redeemable participating shares and payment of expenses and bank overdraft interest. Details of these amounts where
relevant, can be found in the Statement of Financial Position. There are no financial liabilities that fall due over 1 month except for the
financial derivative instruments which are outlined on the Portfolios of Investments at 31 March 2016 or at 31 March 2015.
Concentration Risk
The Funds may be exposed to concentration risk when a shareholder holds a significant portion of the issued share capital of the Funds.
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Fair Value Measurement
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to
access at the valuation date. An active market for the asset or liability is a market in which transactions for the asset or liability occur
with sufficient frequency and volume to provide pricing information on an ongoing basis.
Level 2 inputs are inputs other than quoted prices in active markets included within level 1 that are observable for the asset or
liability, either directly or indirectly. Fair value is determined through the use of models or other valuation methodologies. Level 2
inputs include the following:
a) Quoted prices for similar assets or liabilities in active markets.
b) Q uoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few
transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among
market makers, or in which little information is released publicly.
c) Inputs other than quoted prices that are observable for the asset or liability (e.g. interest rate and yield curves observable at
commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks and default rates).
d) Inputs that are derived principally from or corroborated by observable market data by correlation or other means.
Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the Company’s own assumptions about how
market participants would be expected to value the asset or liability. Unobservable inputs are developed based on the best information
available in the circumstances, other than market data obtained from sources independent of the Company and might include the
Company’s own data.
An investment is always categorised as level 1, 2 or 3 in its entirety. In certain cases, the fair value measurement for an investment may
use a number of different inputs that fall into different levels of the fair value hierarchy. In such cases, an investment’s level within
the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The assessment of the
significance of a particular input to the fair value measurement requires judgment and is specific to the investment.
The following tables provide a breakdown of the financial instruments of each Fund by valuation category at 31 March 2016 and
31 March 2015:
2016
Lazard Emerging Markets Bond Fund
Assets
Level 1
USD
Level 2
USD
Total
USD
16,411,252
Financial assets at fair value through profit or loss:
Investments at fair value:
Transferable Securities
Unrealised gain on forward foreign currency exchange contracts
Total assets
-
16,411,252
-
19,704
19,704
-
16,430,956
16,430,956
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange contracts
Total liabilities
Lazard Global Investment Funds plc
-
(439)
(439)
-
(439)
(439)
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
The Company has early adopted the Amendments to FRS 102, “Fair Value Hierarchy Disclosures”, which are effective for accounting
periods beginning on or after 1 January 2017. These amendments require the Company to categorise its fair value measurements into
the following levels consistent with the fair value hierarchy set out in International Financial Reporting Standards as adopted for use
in the European Union. These amendments did not have any impact on the Funds' financial position or performance.
71
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Fair Value Measurement (continued)
2015
Lazard Emerging Markets Bond Fund
Assets
Level 1
USD
Level 2
USD
Total
USD
15,925,412
Financial assets at fair value through profit or loss:
LAZARD GLOBAL INVESTMENT FUNDS PLC
Investments at fair value:
72
Transferable Securities
Unrealised gain on forward foreign currency exchange contracts
Total assets
-
15,925,412
-
321
321
-
15,925,733
15,925,733
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange contracts
Total liabilities
-
(6,704)
(6,704)
-
(6,704)
(6,704)
Level 1
USD
Level 2
USD
Total
USD
247,325,912
2016
Lazard Emerging Markets Local Debt Fund
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
Transferable Securities
Unrealised gain on forward foreign currency exchange contracts
Total assets
-
247,325,912
-
2,132,649
2,132,649
-
249,458,561
249,458,561
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange contracts
Total liabilities
-
(2,302,672)
(2,302,672)
-
(2,302,672)
(2,302,672)
Level 1
USD
Level 2
USD
Total
USD
224,677,050
2015
Lazard Emerging Markets Local Debt Fund
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
Transferable Securities
Unrealised gain on forward foreign currency exchange contracts
Total assets
-
224,677,050
-
712,099
712,099
-
225,389,149
225,389,149
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange contracts
Total liabilities
Lazard Global Investment Funds plc
-
(981,590)
(981,590)
-
(981,590)
(981,590)
Year ended 31 March 2016
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Fair Value Measurement (continued)
2016
Lazard Emerging Markets Total Return Debt Fund
Assets
Level 1
USD
Level 2
USD
Total
USD
592,477,541
Financial assets at fair value through profit or loss:
-
592,477,541
Options purchased at fair value
Transferable Securities
-
988,821
988,821
Unrealised gain on forward foreign currency exchange contracts
-
17,462,464
17,462,464
Credit Default Swaps at fair value
Total assets
-
5,325,505
5,325,505
-
616,254,331
616,254,331
Liabilities
Financial liabilities at fair value through profit or loss:
Options written at fair value
-
(433,415)
(433,415)
Unrealised loss on forward foreign currency exchange contracts
-
(4,261,525)
(4,261,525)
Credit Default Swaps at fair value
Total liabilities
-
(5,546,421)
(5,546,421)
-
(10,241,361)
(10,241,361)
Level 1
USD
Level 2
USD
Total
USD
939,784,896
2015
Lazard Emerging Markets Total Return Debt Fund
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
Transferable Securities
-
939,784,896
-
5,604,935
5,604,935
-
945,389,831
945,389,831
Unrealised loss on forward foreign currency exchange contracts
-
(10,699,532)
(10,699,532)
Credit Default Swaps at fair value
-
(6,111,658)
(6,111,658)
-
(16,811,190)
(16,811,190)
Level 1
USD
Level 2
USD
Total
USD
Unrealised gain on forward foreign currency exchange contracts
Total assets
Liabilities
Financial liabilities at fair value through profit or loss:
Total liabilities
2015
Lazard Emerging Markets Allocation Fund
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
17,842,919
2,866,122
20,709,041
Collective Investment Schemes
Transferable Securities
-
9,007,250
9,007,250
Unrealised gain on forward foreign currency exchange contracts
-
81,094
81,094
17,842,919
11,954,466
29,797,385
Total assets
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange contracts
Total liabilities
Lazard Global Investment Funds plc
-
(233,368)
(233,368)
-
(233,368)
(233,368)
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Investments at fair value:
73
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Fair Value Measurement (continued)
2016
Lazard Emerging Markets Debt Blend Fund
Assets
Level 1
USD
Level 2
USD
Total
USD
1,287,045,987
Financial assets at fair value through profit or loss:
LAZARD GLOBAL INVESTMENT FUNDS PLC
Investments at fair value:
74
Transferable Securities
Unrealised gain on forward foreign currency exchange contracts
Total assets
-
1,287,045,987
-
9,963,867
9,963,867
-
1,297,009,854
1,297,009,854
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange contracts
Total liabilities
-
(1,723,134)
(1,723,134)
-
(1,723,134)
(1,723,134)
Level 1
USD
Level 2
USD
Total
USD
1,609,512,344
2015
Lazard Emerging Markets Debt Blend Fund
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
Transferable Securities
Unrealised gain on forward foreign currency exchange contracts
Total assets
-
1,609,512,344
-
832,711
832,711
-
1,610,345,055
1,610,345,055
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange contracts
Total liabilities
-
(3,008,497)
(3,008,497)
-
(3,008,497)
(3,008,497)
Level 1
USD
Level 2
USD
Total
USD
458,572,495
2016
Lazard Emerging Markets Debt Unrestricted Blend Fund
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
Transferable Securities
Unrealised gain on forward foreign currency exchange contracts
Total assets
-
458,572,495
-
5,177,366
5,177,366
-
463,749,861
463,749,861
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange contracts
Total liabilities
-
(796,263)
(796,263)
-
(796,263)
(796,263)
Level 1
GBP
Level 2
GBP
Total
GBP
234,309
16,059,141
16,293,450
7,183
-
7,183
2016
Lazard Opportunities Fund
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
Transferable Securities
Options purchased at fair value
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Fair Value Measurement (continued)
Lazard Opportunities Fund (continued)
Level 1
GBP
Level 2
GBP
Total
GBP
Equity swap at fair value
-
153,496
153,496
Unrealised gain on forward foreign currency exchange contracts
-
70,826
70,826
241,492
16,283,463
16,524,955
(11,193)
-
(11,193)
(1,682)
-
(1,682)
-
(123,425)
(123,425)
(12,875)
(123,425)
(136,300)
Level 1
GBP
Level 2
GBP
Total
GBP
4,853,084
28,816,889
33,669,973
81,810
-
81,810
-
446,222
446,222
4,934,894
29,263,111
34,198,005
Total assets
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on open future contracts
Options written at fair value
Unrealised loss on forward foreign currency exchange contracts
Total liabilities
2015
Lazard Opportunities Fund
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
Transferable Securities
Options purchased at fair value
Unrealised gain on forward foreign currency exchange contracts
Total assets
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on open future contracts
(7,319)
-
(7,319)
(65,854)
-
(65,854)
Equity swap at fair value
-
(2,436,285)
(2,436,285)
Unrealised loss on forward foreign currency exchange contracts
-
(683,962)
(683,962)
(73,173)
(3,120,247)
(3,193,420)
Level 1
USD
Level 2
USD
Total
USD
Options written at fair value
Total liabilities
2016
Lazard Global Hexagon Equity Fund
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
26,340,355
31,972,502
58,312,857
Investment Funds
Transferable Securities
-
629,797
629,797
Options purchased at fair value
-
41,434
41,434
Unrealised gain on forward foreign currency exchange contracts
-
1,360,026
1,360,026
Unrealised gain on contracts for difference
Total assets
-
258,985
258,985
26,340,355
34,262,744
60,603,099
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange contracts
-
(1,020,550)
(1,020,550)
Unrealised loss on contracts for difference
-
(2,338,569)
(2,338,569)
-
(3,359,119)
(3,359,119)
Total liabilities
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
2015 (continued)
75
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Fair Value Measurement (continued)
2015
Lazard Global Hexagon Equity Fund
Assets
Level 1
USD
Level 2
USD
Total
USD
149,173,920
Financial assets at fair value through profit or loss:
LAZARD GLOBAL INVESTMENT FUNDS PLC
Investments at fair value:
76
98,134,388
51,039,532
Unrealised gain on forward foreign currency exchange contracts
Transferable Securities
-
3,423,989
3,423,989
Unrealised gain on contracts for difference
-
2,535,566
2,535,566
98,134,388
56,999,087
155,133,475
USD
USD
USD
Total assets
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange contracts
-
(3,191,712)
(3,191,712)
Unrealised loss on contracts for difference
-
(6,013,514)
(6,013,514)
-
(9,205,226)
(9,205,226)
Level 1
EUR
Level 2
EUR
Total
EUR
241,855,876
Total liabilities
2016
Lazard European Alternative Fund
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
67,515,962
174,339,914
Unrealised gain on open future contracts
Transferable Securities
-
340,550
340,550
Unrealised gain on contracts for difference
-
3,081,872
3,081,872
67,515,962
177,762,336
245,278,298
Total assets
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on open future contracts
Unrealised loss on forward foreign currency exchange contracts
Unrealised loss on contracts for difference
Total liabilities
(51,412)
-
(51,412)
-
(614,341)
(614,341)
-
(2,667,325)
(2,667,325)
(51,412)
(3,281,666)
(3,333,078)
Level 1
USD
Level 2
USD
Total
USD
11,361,614
2016
Lazard US Fundamental Alternative Fund
Assets
Financial assets at fair value through profit or loss:
Investments at fair value:
-
11,361,614
Unrealised gain on forward foreign currency exchange contracts
Transferable Securities
-
183,174
183,174
Unrealised gain on contracts for difference
-
801,038
801,038
-
12,345,826
12,345,826
Total assets
Liabilities
Financial liabilities at fair value through profit or loss:
Unrealised loss on forward foreign currency exchange contracts
-
(4,290)
(4,290)
Unrealised loss on contracts for difference
-
(651,225)
(651,225)
-
(655,515)
(655,515)
Total liabilities
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
9. Risk Management Policies And Procedures (continued)
Fair Value Measurement (continued)
Investments, whose values are based on quoted market prices in active markets, and therefore classified within level 1, include active
listed equities and exchange traded derivatives. The Funds do not adjust the quoted price for these instruments.
There is a level 3 security held but fair valued at zero on Lazard Opportunities Fund as at 31 March 2016. There were no other level
3 securities held on the Funds during the year ended 31 March 2016 and none held at level 3 during the year ended 31 March 2015.
There were no movements of financial instruments between levels during the years ended 31 March 2016 or 31 March 2015.
10. Soft Commission Arrangements
In relation to Lazard Global Hexagon Equity Fund, Lazard European Alternative Fund and Lazard US Fundamental Alternative
Fund, the Investment Manager for the Company, in accordance with common market practice for investment managers, entered into
dealing arrangements with brokers whereby part of the dealing commissions paid to them is used to discharge the cost of investment
related services supplied to them by the broker or by third parties. These services may be either market research or be related to the
execution of trades on behalf of clients.
The Investment Manager places business with these counterparties including transactions relating to the the investments of Lazard
Global Hexagon Equity Fund, Lazard European Alternative Fund and Lazard US Fundamental Alternative Fund. The Investment
Manager will endeavour at all times to obtain best execution on all transactions for all clients including these Funds, and is satisfied
that these arrangements are of benefit to these Funds. For the other Funds, there were no soft commission arrangements during the
years ended 31 March 2016 or 31 March 2015.
11. Related Party Transactions
The authorised share capital of the Company was two Subscriber Shares of par value of £1.00 each. The two Subscriber Shares are
held by the Manager and the Promoter. All material related party transactions with the Manager and Directors are included in Note
3 to the financial statements.
Michael Allen, Andreas Hübner and William Smith are full time executives of the Lazard Group as well as Directors of the Company.
Michael Allen, Andreas Hübner and William Smith are not entitled to any Directors’ fees. The Company’s Directors are also Directors
of the Manager.
Daniel Morrissey is a Director of the Company and is also a partner of William Fry (the Company’s legal advisers as to Irish Law).
The partners of William Fry own Wilton Secretarial Limited (the “Secretary”). Accordingly, Daniel Morrissey had a beneficial interest
under the Irish Companies Act 2014 in legal and secretarial fees paid to William Fry and the Secretary and amounts of USD 129,585
were paid for the year ended 31 March 2016 (31 March 2015: USD 367,226).
John Donohoe is a Director of the Company and is also a founder and group CEO of Carne Global Financial Services Limited who
provide directors support to John Donohoe and MLRO services to the Manager and the Company. There were payments made to
Carne Global Financial Services Limited for directors support and MLRO services of USD 38,166 for the year ended 31 March 2016
(31 March 2015: USD 46,519).
As at 31 March 2016, the following entities held investments in the Company:
2016
Investor Name
Fund Name
Value
Currency
% of NAV
of each Fund
LLTD1 S.A.R.L
Lazard Emerging Markets Bond Fund
11,454,089
USD
67.96
LLTD1 S.A.R.L
Lazard Emerging Markets Bond Fund
253,106
EUR
1.71
Lazard Asset Management Limited
Lazard Emerging Markets Total Return Debt Fund
9,183
USD
0.00
Lazard & Co Services Limited
Lazard Emerging Markets Total Return Debt Fund
183,724
USD
0.03
Lazard Group LLC
Lazard Emerging Markets Total Return Debt Fund
1,084,441
USD
0.18
Lazard Japan Asset Management KK
Lazard Opportunities Fund
4,768,987
USD
19.18
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Financial instruments that do not have quoted market prices but are valued based on market prices, dealer quotations or alternative
pricing sources supported by observable inputs are classified within level 2, these include bonds and over-the-counter derivatives.
77
Notes to the Financial Statements (continued)
LAZARD GLOBAL INVESTMENT FUNDS PLC
11. Related Party Transactions (continued)
78
Lazard Asset Management Limited
Lazard Global Hexagon Equity Fund
1,875,093
USD
2.86
Lazard Asset Management Pacific Co
Lazard Global Hexagon Equity Fund
93,422
USD
0.14
Lazard & Co Services Limited
Lazard Global Hexagon Equity Fund
31,566
USD
0.05
Lazard Group LLC
Lazard Global Hexagon Equity Fund
1,214,994
USD
1.85
Lazard Asset Management LLC
Lazard European Alternative Fund
96,991
EUR
0.03
Lazard Asset Management LLC
Lazard European Alternative Fund
15,031,493
USD
4.59
Lazard Asset Management LLC
Lazard US Fundamental Alternative Fund
2,891,517
USD
19.40
Investor Name
Fund Name
Value
Currency
% of NAV
of each Fund
LLTD1 S.A.R.L
Lazard Emerging Markets Bond Fund
11,289,218
USD
69.72
Lazard Group LLC
Lazard Emerging Markets Total Return Debt Fund
2,582,476
USD
0.25
Lazard Asset Management LLC
Lazard Emerging Markets Allocation Fund
14,720,679
USD
47.84
Lazard Japan Asset Management KK
Lazard Opportunities Fund
573,045,296
JPY
9.37
Lazard Asset Management Pacific Co
Lazard Global Hexagon Equity Fund
99,760
USD
0.07
Lazard Group LLC
Lazard Global Hexagon Equity Fund
2,552,098
USD
1.78
2015
12. Cross-Investments
Lazard Emerging Markets Allocation Fund was fully redeemed during the financial year ended 31 March 2016 and therefore held
no cross-investments at the year end. As at 31 March 2015, Lazard Emerging Markets Allocation Fund held 51,372 shares in Lazard
Emerging Markets Total Return Debt Fund and 30,000 shares in Lazard Emerging Markets Debt Blend Fund. As a result of the
cross-investment by Lazard Emerging Markets Allocation Fund into the two respective Funds, it was the USD management class on
each Fund that was being invested into, so therefore there were no fees charged to the assets attributable to this class.
Issues and redemptions of shares and the related realised gains and losses for the year ended 31 March 2016 and 31 March 2015 were:
31 March 2016
Opening cost
Issue of shares
Redemption of shares
Lazard Emerging
Markets Total Return
Debt Fund
Lazard Emerging
Markets Debt
Blend Fund
USD
USD
5,676,827
3,000,000
(5,893,796)
(2,785,101)
-
-
216,969
(214,899)
Closing cost
-
-
Fair value of investments
-
-
Net realised gain in financial assets and liabilities through the Statement of Comprehensive Income
Current unrealised gain/(loss) on financial assets and liabilities through the Statement of Comprehensive Income
(fair value of investments less closing costs)
Prior unrealised gain on financial assets and liabilities through the Statement of Comprehensive Income
-
-
353,166
(22,743)
(353,166)
22,743
(136,197)
(192,156)
Lazard Emerging
Markets Total Return
Debt Fund
Lazard Emerging
Markets Debt
Blend Fund
Movement in unrealised loss on financial assets and liabilities through the Statement of Comprehensive Income
(current unrealised less prior unrealised)
Net increase in net assets from operations
(movement in unrealised gain/(loss) plus net realised gain/(loss))
31 March 2015
USD
USD
Opening cost
4,207,709
-
Issue of shares
(489,000)
-
Redemption of shares
1,876,074
3,000,000
Net realised gain in financial assets and liabilities through the Statement of Comprehensive Income
82,044
-
Closing cost
5,676,827
3,000,000
Fair value of investments
6,029,993
2,977,257
Current unrealised gain/(loss) on financial assets and liabilities through the Statement of Comprehensive Income
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
12. Cross-Investments
Lazard Emerging
Markets Total Return
Debt Fund
Lazard Emerging
Markets Debt
Blend Fund
(fair value of investments less closing costs)
353,166
(22,743)
Prior unrealised gain on financial assets and liabilities through the Statement of Comprehensive Income
562,121
-
(208,955)
(22,743)
(126,911)
(22,743)
31 March 2015
Movement in unrealised loss on financial assets and liabilities through the Statement of Comprehensive Income
(current unrealised less prior unrealised)
(movement in unrealised gain/(loss) plus net realised gain/(loss))
The impact of the above cross-investment transactions has been eliminated from the total column for the umbrella fund in the
Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Net Assets attributable to
Redeemable Participating Shareholders.
13. Distributions
During the year ended 31 March 2016, distributions were paid on the following class of shares.
Fund
Ex Date:
31 March 2015
Lazard Emerging
Markets Local
Debt Fund
Lazard Emerging
Markets Total
Return Debt Fund
Amount Distribution
USD per Share
Amount Distribution
USD per Share
Lazard Emerging
Markets Debt
Blend Fund
Amount Distribution
USD per Share
USD Institutional
Distributing Class
1,175,105
1.9937
-
-
-
-
EURO Hedged Institutional
Distributing Class
-
-
5,304,536
2.5270
-
-
EURO Hedged Institutional
Distributing B Class
-
-
3,453,970
2.0493
-
-
GBP Hedged Institutional
Distributing Class
12,596
3.2659
-
-
-
-
AUD Hedged
Management Class
-
-
749,014
2.0096
-
-
EURO Institutional
Distributing K Class
-
-
-
-
519,806
2.551
The above distributions were paid on behalf of the Shareholders of that class in the relevant Fund on 9 April 2015.
Fund
Ex Date:
30 September 2015
Lazard Emerging
Markets Local
Debt Fund
Lazard Emerging
Markets Total
Return Debt Fund
Amount Distribution
USD per Share
Amount Distribution
USD per Share
Lazard Emerging
Markets Allocation
Fund
Lazard Emerging
Markets Debt
Blend Fund
Amount Distribution
USD per Share
Amount Distribution
USD per Share
USD Institutional
Distributing Class
1,590,971
1.7157
-
-
13,010
0.3315
-
-
EURO Hedged Institutional
Distributing Class
-
-
2,948,670
1.5042
-
-
-
-
EURO Hedged Institutional
Distributing B Class
-
-
1,627,367
1.0453
-
-
-
-
GBP Hedged Institutional
Distributing Class
4,813
2.7393
-
-
17,961
0.3347
-
-
GBP Hedged Retail
Distributing Class
-
-
-
-
36,607
0.4201
-
-
AUD Hedged
Management Class
-
-
629,362
1.2735
-
-
-
-
EURO Institutional
Distributing K Class
-
-
-
-
-
-
459,504
2.710
The above distributions were paid on behalf of the Shareholders of that class in the relevant Fund on 14 October 2015.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Net increase in net assets from operations
79
Notes to the Financial Statements (continued)
13. Distributions (continued)
During the year ended 31 March 2015, distributions were paid on the following class of shares.
Lazard Emerging
Markets Local
Debt Fund
Lazard Emerging
Markets Total
Return Debt Fund
Amount Distribution
USD per Share
Amount Distribution
USD per Share
Fund
LAZARD GLOBAL INVESTMENT FUNDS PLC
Ex Date:
31 March 2014
80
USD Institutional
Distributing Class
1,370,596
2.3254
-
-
USD X Class
-
-
5,839
2.1937
EURO Hedged Institutional
Distributing Class
-
-
3,992,993
2.5799
EURO Hedged Institutional
Distributing B Class
-
-
1,637,111
2.0079
GBP Hedged Institutional
Distributing Class
63,033
3.9566
-
-
AUD Hedged
Management Class
-
-
399,406
2.0029
The above distributions were paid on behalf of the Shareholders of that class in the relevant Fund on 7 April 2014.
Lazard Emerging
Markets Local
Debt Fund
Lazard Emerging
Markets Total
Return Debt Fund
Lazard
Emerging Markets
Allocation Fund
Amount Distribution
USD per Share
Amount Distribution
USD per Share
Amount Distribution
USD per Share
Fund
Ex Date:
30 September 2014
USD Institutional
Distributing Class
1,380,453
2.3421
-
-
19,277
0.4925
USD X Class
-
-
4,671
1.7551
-
-
EURO Hedged Institutional
Distributing Class
-
-
3,191,154
1.8382
-
-
EURO Hedged Institutional
Distributing B Class
-
-
1,045,781
1.3042
-
-
GBP Hedged Retail C
Distributing Class
-
-
-
-
3,345
0.0670
GBP Hedged Institutional
Distributing Class
64,582
4.0908
-
-
33,548
0.7950
AUD Hedged
Management Class
-
-
437,533
1.6527
-
-
The above distributions were paid on behalf of the Shareholders of that class in the relevant Fund on 7 October 2014.
14. Significant Events During The Year
During the year ended 31 March 2016, the following classes were launched.
Fund Name
Share Class
Launch Date
Lazard Emerging Markets Debt Blend Fund
Euro Hedged Accumulating X Class
8 May 2015
GBP Institutional Accumulating Class
1 October 2015
Euro Hedged Accumulating X Class
8 December 2015
USD Institutional Accumulating Class
10 December 2015
Euro Institutional Accumulating K Class
10 December 2015
GBP Institutional Accumulating Class
10 December 2015
GBP Institutional Accumulating K Class
29 January 2016
CHF Hedged Institutional Accumulating Class
18 February 2016
USD Accumulating X Class
23 March 2016
Lazard Opportunities Fund
USD Hedged Institutional Accumulating Class
24 March 2016
Lazard European Alternative Fund
Euro Institutional Accumulating Class
28 September 2015
USD Hedged Management Class
28 September 2015
Lazard Emerging Markets Debt Unrestricted Blend Fund
Lazard Global Investment Funds plc
Year ended 31 March 2016
Notes to the Financial Statements (continued)
Fund Name
Lazard US Fundamental Alternative Fund
Share Class
Launch Date
Euro Institutional Accumulating EA Class
1 October 2015
USD Hedged Institutional Accumulating EA Class
1 October 2015
Euro Institutional Accumulating LP Class
9 November 2015
USD Hedged Institutional Accumulating LP Class
10 December 2015
USD Hedged Institutional Accumulating Class
4 January 2016
Euro Institutional Distributing LP Class
19 February 2016
Euro Retail Distributing P Class
21 March 2016
USD Institutional Accumulating Class
4 January 2016
USD Institutional Accumulating EA Class
4 January 2016
USD Management Class
4 January 2016
Euro Hedged Institutional Accumulating EA Class
28 January 2016
During the year ended 31 March 2016, the following classes were terminated.
Fund Name
Share Class
Termination Date
Lazard Emerging Markets Total Return Debt Fund
CHF Hedged Institutional Accumulating Class
11 September 2015
USD Management Class
10 November 2015
Lazard Emerging Markets Allocation Fund
All share classes
10 November 2015
Lazard Emerging Markets Debt Blend Fund
USD Management Class
10 November 2015
GBP Institutional Accumulating Class
10 December 2015
Lazard Opportunities Fund
YEN Hedged Institutional Accumulating Class
24 March 2016
Lazard Global Hexagon Equity Fund
CHF Hedged Institutional Accumulating L Class
10 July 2015
Euro Hedged Institutional Accumulating L Class
24 March 2016
There were no other significant events during the year.
15. Significant Events Since The Year End
Distributions will not be paid in respect of any class of Share which is an accumulating class. Income and profits, if any, attributable to
an accumulating Share class will be accumulated and reinvested in the relevant Fund on behalf of the Shareholders of that class and
will be reflected in the Net Asset Value of the relevant accumulating Share class. Distributions were declared on the below share classes
on Lazard Emerging Markets Local Debt Fund, Lazard Emerging Markets Total Return Debt Fund and Lazard Emerging Markets
Debt Blend Fund in respect of the period from 1 October 2015 to 31 March 2016. These were paid on behalf of the Shareholders of
that class in the relevant Fund on 7 April 2016 and details of these distributions are as follows:
Fund
Ex Date:
1 April 2016
Lazard Emerging
Markets Local
Debt Fund
Lazard Emerging
Markets Total
Return Debt Fund
Amount Distribution
USD per Share
Amount Distribution
USD per Share
Lazard Emerging
Markets Debt
Blend Fund
Amount Distribution
USD per Share
USD Institutional
Distributing Class
925,338
1.5700
-
-
-
-
EURO Hedged Institutional
Distributing Class
-
-
3,093,183
1.6606
-
-
EURO Hedged Institutional
Distributing B Class
-
-
850,775
1.2463
-
-
GBP Hedged Institutional
Distributing Class
2,280
2.3957
-
-
-
-
AUD Hedged
Management Class
-
-
788,395
1.7388
-
-
EURO Institutional
Distributing K Class
-
-
-
-
5,557
2.831
There were no other significant events since the year end.
16. Approval Of The Financial Statements
The financial statements were approved by the Directors on 29 June 2016.
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
14. Significant Events During The Year (continued)
81
Portfolios of Investments
Lazard Emerging Markets Bond Fund
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
% of
NAV
25,000 Colombia Government 2.625% 15/03/2023
23,313
0.14
282,000 Colombia Government 4.000% 26/02/2024
284,115
1.69
50,000 Colombia Government 4.500% 28/01/2026
51,250
0.30
20,000 Colombia Government 5.625% 26/02/2044
19,975
0.12
137,000 Colombia Government 6.125% 18/01/2041
145,220
0.86
523,873
3.11
Transferable Securities 97.37% (2015: 98.36%) (continued)
Fixed Income Securities 97.37% (2015: 98.36%) (continued)
Angola 0.27% (2015: Nil)
Colombia 3.11% (2015: 3.34%)
50,000 Angola Government 9.500% 12/11/2025
LAZARD GLOBAL INVESTMENT FUNDS PLC
Fair Value
USD
Transferable Securities 97.37% (2015: 98.36%)
Fixed Income Securities 97.37% (2015: 98.36%)
Government Bonds
82
Principal
Amount
Government Bonds
45,688
0.27
Argentina 5.32% (2015: 2.64%)
Government Bonds
402,000 Argentina Government 2.500% 31/12/2038
Argentina Government (Argentina Listed)
182,045
8.280% 31/12/2033
Argentina Government (Germany Listed)
280,408
8.280% 31/12/2033
89,000 Argentina Government 8.750% 02/06/2017
269,843
1.60
186,595
1.11
Costa Rica 1.02% (2015: 1.19%)
334,369
1.98
105,687
0.63
85,000 Costa Rica Government 4.250% 26/01/2023
77,881
0.46
896,494
5.32
60,000 Costa Rica Government 4.375% 30/04/2025
53,250
0.32
45,000 Costa Rica Government 7.000% 04/04/2044
41,175
0.24
172,306
1.02
385,000 Croatia Government 6.000% 26/01/2024
420,202
2.49
40,000 Croatia Government 6.625% 14/07/2020
44,021
0.26
464,223
2.75
175,000 Dominican Republic 5.500% 27/01/2025
175,438
1.04
300,000 Dominican Republic 5.875% 18/04/2024
309,000
1.83
20,000 Dominican Republic 6.850% 27/01/2045
19,700
0.12
Azerbaijan 0.77% (2015: 1.23%)
Government Bonds
Government Bonds
135,000 Azerbaijan Republic 4.750% 18/03/2024
129,094
0.77
Croatia 2.75% (2015: 2.34%)
Government Bonds
Belize 0.53% (2015: 0.34%)
Government Bonds
180,000 Belize Government 5.000% 20/02/2038
90,000
0.53
Dominican Republic 3.43% (2015: 1.99%)
Bolivia Nil (2015: 1.28%)
Government Bonds
Brazil 6.08% (2015: 4.78%)
Government Bonds
390,000 Brazil Government 2.625% 05/01/2023
334,425
1.98
25,000 Dominican Republic 6.875% 29/01/2026
26,593
0.16
180,000 Brazil Government 4.250% 07/01/2025
165,330
0.98
45,000 Dominican Republic 7.450% 30/04/2044
47,475
0.28
104,000 Brazil Government 4.875% 22/01/2021
105,300
0.62
578,206
3.43
75,000 Brazil Government 5.000% 27/01/2045
60,281
0.36
El Salvador Nil (2015: 0.30%)
42,000 Brazil Government 5.875% 15/01/2019
45,465
0.27
160,000 Brazil Government 6.000% 07/04/2026
162,960
0.97
101,000 Brazil Government 7.125% 20/01/2037
102,515
0.61
40,000 Brazil Government 8.875% 15/04/2024
48,700
0.29
75,000 Ecuador Government 7.950% 20/06/2024
62,719
0.37
1,024,976
6.08
100,000 Ecuador Government 10.500% 24/03/2020
90,750
0.54
153,469
0.91
107,100
0.64
66,700
0.40
88,061
0.52
76,763
0.46
212,500
1.26
Ecuador 0.91% (2015: Nil)
Government Bonds
British Virgin Islands Nil (2015: 1.38%)
Egypt 0.64% (2015: Nil)
Cayman Islands Nil (2015: 0.60%)
Government Bonds
120,000 Egypt Government 5.875% 11/06/2025
Cameroon 0.17% (2015: Nil)
Government Bonds
30,000 Cameroon Republic 9.500% 19/11/2025
Gabon 0.40% (2015: Nil)
28,425
0.17
Government Bonds
80,000 Gabon Government 6.950% 16/06/2025
Chile 1.81% (2015: 3.15%)
90,000
75,000
50,000
35,000
50,000
Corporate Bonds
Corp Nacional del Cobre de Chile 3.000%
17/07/2022
Corp Nacional del Cobre de Chile 3.750%
04/11/2020
Corp Nacional del Cobre de Chile 4.500%
16/09/2025
Corp Nacional del Cobre de Chile 5.625%
18/10/2043
Corp Nacional del Cobre de Chile 5.625%
21/09/2035
China Nil (2015: 1.30%)
Lazard Global Investment Funds plc
Ghana 0.52% (2015: Nil)
86,836
0.52
78,590
0.47
51,080
0.30
36,610
0.21
52,740
0.31
305,856
1.81
Government Bonds
90,000 Ghana Government 10.750% 14/10/2030
Guatemala 0.46% (2015: Nil)
Government Bonds
75,000 Guatemala Government 4.875% 13/02/2028
Honduras 1.26% (2015: 1.32%)
Government Bonds
200,000 Honduras Government 7.500% 15/03/2024
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Emerging Markets Bond Fund (continued)
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Principal
Amount
Fair Value
USD
% of
NAV
120,000 Petroleos Mexicanos 3.500% 30/01/2023
108,746
0.65
Indonesia 6.19% (2015: 6.22%)
40,000 Petroleos Mexicanos 4.500% 23/01/2026
37,260
0.22
Corporate Bonds
186,000 Petroleos Mexicanos 4.875% 18/01/2024
182,792
1.08
Transferable Securities 97.37% (2015: 98.36%) (continued)
Fixed Income Securities 97.37% (2015: 98.36%) (continued)
Transferable Securities 97.37% (2015: 98.36%) (continued)
Fixed Income Securities 97.37% (2015: 98.36%) (continued)
Hungary 4.35% (2015: 3.35%)
Lebanon Nil (2015: 1.66%)
Government Bonds
168,910
1.00
70,000 Hungary Government 5.375% 25/03/2024
78,400
0.47
134,000 Hungary Government 5.750% 22/11/2023
152,760
0.91
13,000 Hungary Government 6.250% 29/01/2020
14,478
0.08
132,000 Hungary Government 6.375% 29/03/2021
150,315
0.89
118,000 Hungary Government 7.625% 29/03/2041
168,298
1.00
733,161
4.35
Lithuania Nil (2015: 2.13%)
Malaysia Nil (2015: 1.27%)
Mexico 5.86% (2015: 5.88%)
Corporate Bonds
275,000 Pertamina Persero PT 4.300% 20/05/2023
269,019
1.61
10,000 Petroleos Mexicanos 5.500% 27/06/2044
8,277
0.05
85,000 Pertamina Persero PT 5.625% 20/05/2043
Perusahaan Penerbit SBSN Indonesia III
50,000
4.550% 29/03/2026
Government Bonds
75,316
0.43
56,000 Petroleos Mexicanos 6.375% 23/01/2045
52,077
0.31
0.30
53,000 Petroleos Mexicanos 6.500% 02/06/2041
49,714
0.29
59,000 Petroleos Mexicanos 6.625% 15/06/2035
56,557
0.34
8,000 Indonesia Government 3.750% 25/04/2022
8,092
40,000 Petroleos Mexicanos 6.875% 04/08/2026
43,300
0.26
50,145
0.05
40,000 Indonesia Government 4.750% 08/01/2026
41,960
0.26
122,000 Indonesia Government 4.875% 05/05/2021
131,455
0.78
80,000 Indonesia Government 5.125% 15/01/2045
79,820
0.47
52,000 Indonesia Government 5.250% 17/01/2042
52,494
0.31
45,000 Indonesia Government 5.875% 13/03/2020
50,220
0.30
149,000 Indonesia Government 5.875% 15/01/2024
168,035
1.00
7,000 Indonesia Government 6.625% 17/02/2037
8,148
0.05
10,000 Indonesia Government 6.750% 15/01/2044
12,082
0.07
70,000 Indonesia Government 8.500% 12/10/2035
95,165
0.56
1,041,951
6.19
Ivory Coast 2.92% (2015: 2.40%)
491,575
2.92
Jamaica 1.02% (2015: 1.72%)
105,000 Jamaica Government 6.750% 28/04/2028
107,888
0.64
60,000 Jamaica Government 8.000% 15/03/2039
64,650
0.38
172,538
1.02
Jordan 1.25% (2015: Nil)
210,750
1.25
Kazakhstan 2.71% (2015: 2.27%)
210,500
1.25
50,000 Kazakhstan Government 3.875% 14/10/2024
47,987
0.28
120,000 Kazakhstan Government 4.875% 14/10/2044
105,900
0.63
90,000 Kazakhstan Government 5.125% 21/07/2025
92,948
0.55
457,335
2.71
Kenya 0.65% (2015: 1.30%)
Government Bonds
115,000 Kenya Government 6.875% 24/06/2024
Latvia Nil (2015: 1.43%)
Lazard Global Investment Funds plc
0.38
1.56
24,000 Mexico Government 4.750% 08/03/2044
24,090
0.14
20,000 Mexico Government 6.050% 11/01/2040
23,525
0.14
58,000 Mexico Government 6.750% 27/09/2034
74,965
0.44
987,973
5.86
42,871
0.25
83,400
0.49
53,433
0.32
20,000 Majapahit Holding BV 7.750% 20/01/2020
22,900
0.14
33,000 Majapahit Holding BV 8.000% 07/08/2019
Republic of Angola Via Northern Lights III BV
30,625
7.000% 16/08/2019
37,745
0.22
29,921
0.18
90,566
0.54
213,103
1.26
80,000 Panama Government 3.750% 16/03/2025
82,700
0.49
80,000 Panama Government 3.875% 17/03/2028
81,120
0.48
200,000 Panama Government 4.000% 22/09/2024
210,600
1.25
30,000 Panama Government 4.300% 29/04/2053
28,650
0.17
185,000 Panama Government 6.700% 26/01/2036
236,800
1.40
7,000 Panama Government 7.125% 29/01/2026
9,091
0.05
Mongolia 0.25% (2015: Nil)
Government Bonds
55,000 Mongolia Government 5.125% 05/12/2022
Government Bonds
80,000 Morocco Government 5.500% 11/12/2042
Government Bonds
55,000 Namibia International 5.250% 29/10/2025
Netherlands 0.54% (2015: 0.24%)
Corporate Bonds
Government Bonds
Corporate Bonds
KazMunayGas National Co JSC 7.000%
200,000
05/05/2020
Government Bonds
64,170
262,500
Namibia 0.32% (2015: Nil)
Government Bonds
200,000 Jordan Government 6.125% 29/01/2026
62,000 Mexico Government 3.625% 15/03/2022
250,000 Mexico Government 4.000% 02/10/2023
Morocco 0.49% (2015: Nil)
Government Bonds
530,000 Ivory Coast Government 5.750% 31/12/2032
Government Bonds
109,106
0.65
Pakistan 1.26% (2015: 1.30%)
Government Bonds
200,000 Pakistan Government 8.250% 15/04/2024
Panama 4.87% (2015: 2.81%)
Government Bonds
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
152,000 Hungary Government 5.375% 21/02/2023
83
Portfolios of Investments (continued)
Lazard Emerging Markets Bond Fund (continued)
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Transferable Securities 97.37% (2015: 98.36%) (continued)
Fixed Income Securities 97.37% (2015: 98.36%) (continued)
Transferable Securities 97.37% (2015: 98.36%) (continued)
Fixed Income Securities 97.37% (2015: 98.36%) (continued)
Panama 4.87% (2015: 2.81%) (continued)
Slovenia 2.91% (2015: Nil)
LAZARD GLOBAL INVESTMENT FUNDS PLC
Government Bonds
84
Principal
Amount
Fair Value
USD
% of
NAV
Government Bonds
99,000 Panama Government 8.875% 30/09/2027
142,560
0.85
200,000 Slovenia Government 5.250% 18/02/2024
224,490
1.33
20,000 Panama Government 9.375% 01/04/2029
29,875
0.18
235,000 Slovenia Government 5.500% 26/10/2022
266,263
1.58
821,396
4.87
490,753
2.91
Paraguay 1.23% (2015: Nil)
South Africa 2.08% (2015: 2.78%)
Government Bonds
Government Bonds
155,000 Paraguay Republic 4.625% 25/01/2023
157,519
0.93
24,000 South Africa Government 5.375% 24/07/2044
24,060
0.14
50,000 Paraguay Republic 5.000% 15/04/2026
50,437
0.30
80,000 South Africa Government 5.500% 09/03/2020
85,120
0.51
207,956
1.23
105,000 South Africa Government 5.875% 30/05/2022
114,424
0.68
85,000 South Africa Government 5.875% 16/09/2025
92,650
0.55
30,000 South Africa Government 6.250% 08/03/2041
33,000
0.20
349,254
2.08
Peru 2.68% (2015: 2.84%)
Government Bonds
143,000 Peru Republic 4.125% 25/08/2027
150,150
0.89
59,000 Peru Republic 5.625% 18/11/2050
66,670
0.40
30,000 Peru Republic 6.550% 14/03/2037
37,500
0.22
60,000 Peru Republic 7.350% 21/07/2025
79,350
0.47
60,000 Sri Lanka Government 5.875% 25/07/2022
56,655
0.34
80,000 Peru Republic 8.750% 21/11/2033
118,800
0.70
235,000 Sri Lanka Government 6.250% 04/10/2020
233,883
1.40
452,470
2.68
40,000 Sri Lanka Government 6.850% 03/11/2025
38,450
0.22
328,988
1.96
30,384
0.18
Sri Lanka 1.96% (2015: 1.44%)
Government Bonds
Philippines 3.42% (2015: 4.19%)
Government Bonds
Tunisia 0.18% (2015: 1.26%)
40,000 Philippines Government 3.700% 01/03/2041
42,275
0.25
75,000 Philippines Government 3.950% 20/01/2040
82,453
0.49
70,000 Philippines Government 4.200% 21/01/2024
78,978
0.47
Corporate Bonds
35,000 Banque Centrale de Tunisie SA 5.750% 30/01/2025
Turkey 4.45% (2015: 6.47%)
33,000 Philippines Government 5.500% 30/03/2026
41,241
0.24
185,000 Philippines Government 7.750% 14/01/2031
281,478
1.67
30,000 Philippines Government 9.500% 02/02/2030
50,678
0.30
160,000 Turkey Government 3.250% 23/03/2023
151,200
0.90
577,103
3.42
75,000 Turkey Government 4.250% 14/04/2026
73,031
0.43
40,000 Turkey Government 4.875% 09/10/2026
40,500
0.24
240,000 Turkey Government 5.625% 30/03/2021
259,530
1.54
18,000 Turkey Government 6.000% 14/01/2041
19,507
0.12
20,000 Turkey Government 6.875% 17/03/2036
23,688
0.14
Poland Nil (2015: 2.83%)
Romania 1.67% (2015: 1.92%)
Government Bonds
Government Bonds
158,000 Romania Government 4.375% 22/08/2023
168,428
1.00
50,000 Turkey Government 7.250% 05/03/2038
61,750
0.37
40,000 Romania Government 4.875% 22/01/2024
44,130
0.26
100,000 Turkey Government 7.375% 05/02/2025
120,125
0.71
56,000 Romania Government 6.125% 22/01/2044
68,600
0.41
749,331
4.45
281,158
1.67
83,000 Ukraine Government 7.750% 01/09/2019
Ukraine 3.40% (2015: 0.39%)
Government Bonds
Russia 4.37% (2015: 5.04%)
Government Bonds
78,435
0.47
200,000 Russian Federation 4.875% 16/09/2023
209,400
1.24
321,168 Ukraine Government 7.750% 01/09/2020
302,219
1.79
239,609 Russian Federation 7.500% 31/03/2030
292,922
1.74
39,625 Ukraine Government 7.750% 01/09/2021
36,891
0.22
140,000 Russian Federation 12.750% 24/06/2028
233,625
1.39
114,625 Ukraine Government 7.750% 01/09/2022
105,742
0.63
735,947
4.37
55,000 Ukraine Government 7.750% 01/09/2025
48,950
0.29
572,237
3.40
35,000 Uruguay Government 4.125% 20/11/2045
29,969
0.18
15,000 Uruguay Government 5.100% 18/06/2050
14,025
0.08
95,000 Uruguay Government 7.875% 15/01/2033
123,144
0.73
167,138
0.99
20,163
0.12
5,154
0.03
Rwanda 0.46% (2015: 1.25%)
Uruguay 0.99% (2015: 2.19%)
Government Bonds
80,000 Rwanda Republic 6.625% 02/05/2023
77,792
0.46
Senegal 0.55% (2015: 1.21%)
Government Bonds
100,000 Senegal Government 6.250% 30/07/2024
93,000
Government Bonds
0.55
Venezuela 2.37% (2015: 1.64%)
Serbia 1.86% (2015: 1.75%)
Government Bonds
125,000 Serbia Republic 4.875% 25/02/2020
127,207
0.75
180,435 Serbia Republic 6.750% 01/11/2024
187,043
1.11
314,250
1.86
Lazard Global Investment Funds plc
Corporate Bonds
Petroleos de Venezuela SA 5.125%
26,000
28/10/2016
Petroleos de Venezuela SA 5.250%
10,000
12/04/2017
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Emerging Markets Bond Fund (continued)
Portfolio of Investments as at 31 March 2016
Fair Value
USD
% of
NAV
Maturity
Date
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
USD
% of
NAV
Transferable Securities 97.37% (2015: 98.36%) (continued)
Fixed Income Securities 97.37% (2015: 98.36%) (continued)
Financial Derivative Instruments 0.12% (2015: (0.04)%) (continued)
Open Forward Foreign Currency Exchange Contracts 0.12% (2015: (0.04)%) (continued)
Venezuela 2.37% (2015: 1.64%) (continued)
Total Financial Derivative Instruments
73,000
20,000
86,000
51,301
124,667
16,000
38,000
79,000
Corporate Bonds
Petroleos de Venezuela SA 5.375%
12/04/2027
Petroleos de Venezuela SA 5.500%
12/04/2037
Petroleos de Venezuela SA 6.000%
16/05/2024
Petroleos de Venezuela SA 6.000%
15/11/2026
Petroleos de Venezuela SA 8.500%
02/11/2017
Petroleos de Venezuela SA 9.000%
17/11/2021
Petroleos de Venezuela SA 9.750%
17/05/2035
Petroleos de Venezuela SA 12.750%
17/02/2022
Government Bonds
19,265
0.12
23,353
0.14
6,425
0.04
27,026
0.16
Total Investments (2015: 98.32%)
16,019
0.10
Other Net Assets (2015: 1.68%)
66,541
0.39
6,000
0.04
Analysis of total assets (unaudited)
Transferable securities admitted to an official stock exchange listing
82.36
14,315
0.08
Transferable securities dealt in on another regulated market
13.95
36,380
0.22
15,000 Venezuela Government 6.000% 09/12/2020
5,100
0.03
50,000 Venezuela Government 7.000% 01/12/2018
20,250
0.12
96,000 Venezuela Government 7.000% 31/03/2038
32,640
0.19
47,000 Venezuela Government 7.650% 21/04/2025
15,863
0.09
25,000 Venezuela Government 7.750% 13/10/2019
9,500
0.06
30,800 Venezuela Government 8.250% 13/10/2024
10,626
0.06
15,000 Venezuela Government 9.000% 07/05/2023
5,324
0.03
33,000 Venezuela Government 9.250% 15/09/2027
13,365
0.08
20,000 Venezuela Government 9.250% 07/05/2028
7,150
0.04
23,000 Venezuela Government 9.375% 13/01/2034
8,223
0.05
22,000 Venezuela Government 11.750% 21/10/2026
8,745
0.05
58,000 Venezuela Government 11.950% 05/08/2031
23,200
0.14
31,000 Venezuela Government 12.750% 23/08/2022
13,485
0.08
7,000 Venezuela Government 13.625% 15/08/2018
4,477
0.03
399,324
2.37
111,275
0.66
Total Fixed Income Securities
16,411,252
97.37
Total Transferable Securities
16,411,252
97.37
Total Value of Investments excluding Financial
Derivative Instruments
16,411,252
97.37
Maturity
Date
Unrealised
Gain/(Loss)
USD
% of
NAV
Net Assets
Fair Value
USD
% of
NAV
16,430,517
97.49
424,111
2.51
16,854,628
100.00
% of total assets
Over the counter financial derivative instruments
0.12
Other assets
3.57
Total Assets
100.00
The counterparty for the open forward foreign currency exchange contracts is State Street
Bank and Trust Company.
Fixed income securities are primarily classified by the country of incorporation of the
issuer for corporate fixed income securities and country of issuer for government type
fixed income securities.
Vietnam 0.66% (2015: Nil)
Government Bonds
100,000 Vietnam Government 6.750% 29/01/2020
Amount
Bought
Amount
Sold
Financial Derivative Instruments 0.12% (2015: (0.04)%)
Open Forward Foreign Currency Exchange Contracts 0.12% (2015: (0.04)%)
15/04/2015
EUR 599,808
USD 664,036
15/04/2015
USD 14,549
EUR 13,148
Unrealised gain on open forward foreign currency exchange
contracts
Unrealised loss on open forward foreign currency exchange
contracts
Net unrealised gain on open forward foreign currency
exchange contracts
Lazard Global Investment Funds plc
19,704
0.12
(439)
0.00
19,704
0.12
(439)
0.00
19,265
0.12
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Principal
Amount
85
Portfolios of Investments (continued)
Lazard Emerging Markets Local Debt Fund
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Transferable Securities 97.15% (2015: 90.53%)
Fixed Income Securities 97.15% (2015: 90.53%)
Transferable Securities 97.15% (2015: 90.53%) (continued)
Fixed Income Securities 97.15% (2015: 90.53%) (continued)
Brazil 12.79% (2015: 10.20%)
Malaysia 7.94% (2015: 7.70%) (continued)
LAZARD GLOBAL INVESTMENT FUNDS PLC
Government Bonds
Fair Value
USD
% of
NAV
Government Bonds
12,850,000 Brazil Government 10.000% 01/01/2021
3,182,010
1.25
5,940,000 Malaysia Government 3.844% 15/04/2033
1,429,619
0.56
2,370,000 Brazil Government 10.000% 01/01/2023
562,334
0.22
11,660,000 Malaysia Government 3.955% 15/09/2025
3,028,940
1.19
19,690,000 Brazil Government 10.000% 01/01/2025
4,517,982
1.77
21,085,000 Malaysia Government 4.048% 30/09/2021
5,517,823
2.17
3,565,000 Brazil Government 17.100% 15/08/2050
2,681,617
1.05
7,590,000 Malaysia Government 4.181% 15/07/2024
1,986,234
0.78
10,390,000 Brazil Treasury Bill - Zero coupon 01/07/2016
2,835,848
1.11
4,540,000 Malaysia Government 4.498% 15/04/2030
1,199,146
0.47
95,040,000 Brazil Treasury Bill - Zero coupon 01/01/2019
18,822,962
7.39
20,211,759
7.94
32,602,753
12.79
12,350,000 America Movil SAB de CV 6.000% 09/06/2019
714,910
0.28
6,641,000 Petroleos Mexicanos 7.470% 12/11/2026
329,038
0.13
13,108,000 Mexico Government 4.000% 15/11/2040
1,054,147
0.41
8,901,538 Mexico Government 6.000% 18/06/2015
550,681
0.22
Cayman Islands 0.05% (2015: 0.09%)
900,000 Odebrecht Finance Ltd 8.250% 25/04/2018
Mexico 8.70% (2015: 7.03%)
Corporate Bonds
Corporate Bonds
117,976
0.05
Government Bonds
Chile 0.37% (2015: 0.42%)
Government Bonds
520,000,000 Chile Government 5.500% 05/08/2020
805,372
0.32
27,225,000 Mexico Government 6.500% 10/06/2021
1,790,628
0.70
85,000,000 Chile Government 6.000% 01/01/2018
133,379
0.05
44,348,000 Mexico Government 7.750% 29/05/2031
2,918,949
1.15
938,751
0.37
136,343,000 Mexico Government 7.750% 13/11/2042
7,927,529
3.11
6,873,357
2.70
22,159,239
8.70
China 0.36% (2015: 0.39%)
91,708,000 Mexico Government 10.000% 20/11/2036
Government Bonds
6,000,000 China Government 3.250% 22/05/2019
919,586
0.36
Colombia 6.47% (2015: 7.22%)
Nigeria Nil (2015: 0.44%)
Peru 1.36% (2015: 0.74%)
Government Bonds
Government Bonds
18,732,000,000 Colombia Government 5.000% 21/11/2018
5,930,144
2.33
7,790,000 Peru Republic 6.900% 12/08/2037
2,258,747
0.89
18,471,000,000 Colombia Government 6.000% 28/04/2028
5,079,468
2.00
4,120,000 Peru Republic 6.950% 12/08/2031
1,208,485
0.47
14,253,000,000 Colombia Government 10.000% 24/07/2024
5,326,930
2.09
3,467,232
1.36
321,000,000 Colombia Government 11.000% 24/07/2020
120,078
0.05
16,456,620
6.47
50,000,000 Philippines Government 4.950% 15/01/2021
1,134,759
0.45
15,000,000 Philippines Government 6.250% 14/01/2036
362,824
0.14
1,497,583
0.59
Hungary 6.15% (2015: 6.79%)
Government Bonds
Philippines 0.59% (2015: 0.74%)
Government Bonds
1,111,020,000 Hungary Government 5.500% 24/06/2025
4,935,867
1.94
527,200,000 Hungary Government 6.000% 24/11/2023
2,364,584
0.93
1,519,740,000 Hungary Government 6.500% 24/06/2019
6,377,876
2.51
423,590,000 Hungary Government 7.000% 24/06/2022
1,952,404
0.77
12,000,000 Poland Government 2.500% 25/07/2018
3,298,154
1.30
15,630,731
6.15
15,760,000 Poland Government 3.250% 25/07/2025
4,423,039
1.74
21,680,000 Poland Government 5.250% 25/10/2020
6,662,614
2.62
2,145,000 Poland Government 5.500% 25/10/2019
652,220
0.25
17,965,000 Poland Government 5.750% 23/09/2022
5,811,752
2.28
20,847,779
8.19
India 0.89% (2015: Nil)
Government Bonds
150,000,000 India Government 7.720% 25/05/2025
2,271,320
0.89
Indonesia 10.85% (2015: 9.19%)
Poland 8.19% (2015: 8.21%)
Government Bonds
Romania 1.90% (2015: 2.18%)
Government Bonds
Government Bonds
7,119,000,000 Indonesia Government 6.125% 15/05/2028
452,969
0.18
1,390,000 Romania Government 3.250% 22/03/2021
365,177
0.14
24,303,000,000 Indonesia Government 7.000% 15/05/2022
1,770,536
0.70
7,910,000 Romania Government 4.750% 24/02/2025
2,235,652
0.88
2,205,000,000 Indonesia Government 8.250% 15/07/2021
172,581
0.07
7,570,000 Romania Government 5.950% 11/06/2021
2,236,846
0.88
130,857,000,000 Indonesia Government 8.375% 15/03/2024
10,263,294
4.03
4,837,675
1.90
41,191,000,000 Indonesia Government 8.375% 15/09/2026
3,258,624
1.28
55,709,000,000 Indonesia Government 8.375% 15/03/2034
4,247,496
1.67
18,423,000,000 Indonesia Government 8.750% 15/05/2031
1,469,314
0.58
74,165,000,000 Indonesia Government 9.000% 15/03/2029
5,954,398
2.34
27,589,212
10.85
Malaysia 7.94% (2015: 7.70%)
Government Bonds
27,250,000 Malaysia Government 3.654% 31/10/2019
86
Principal
Amount
Lazard Global Investment Funds plc
7,049,997
2.77
Russia 7.05% (2015: 4.16%)
Government Bonds
Russian Federal Inflation Linked Bond
47,166,750
2.500% 16/08/2023
366,808,000 Russian Federation 6.400% 27/05/2020
716,214
0.28
5,008,910
1.97
293,210,000 Russian Federation 7.000% 25/01/2023
3,968,071
1.56
67,051,000 Russian Federation 7.000% 16/08/2023
901,568
0.35
129,320,000 Russian Federation 7.050% 19/01/2028
1,682,746
0.66
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Emerging Markets Local Debt Fund (continued)
Portfolio of Investments as at 31 March 2016
Fair Value
USD
% of
NAV
Maturity
Date
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
USD
% of
NAV
Transferable Securities 97.15% (2015: 90.53%) (continued)
Fixed Income Securities 97.15% (2015: 90.53%) (continued)
Financial Derivative Instruments (0.06)% (2015: (0.11)%) (continued)
Open Forward Foreign Currency Exchange Contracts (0.06)% (2015: (0.11)%) (continued)
Russia 7.05% (2015: 4.16%) (continued)
03/05/2016
BRL 2,492,264
USD 680,482
17,153
0.01
03/05/2016
BRL 1,133,611
USD 309,518
7,802
0.00
Government Bonds
315,790,000 Russian Federation 7.500% 27/02/2019
4,534,227
1.78
18/04/2016
CLP 397,010,000
USD 580,000
12,801
0.01
80,300,000 Russian Federation 7.500% 18/08/2021
1,121,750
0.44
01/04/2016
COP 1,993,200,000
USD 651,373
12,304
0.00
2,000,000 Russian Federation 7.850% 10/03/2018
29,240
0.01
01/04/2016
COP 1,993,200,000
USD 659,487
4,191
0.00
17,962,726
7.05
18/04/2016
COP 3,055,000,000
USD 940,000
76,485
0.03
18/04/2016
EUR 2,130,000
PLN 9,079,104
(10,436)
(0.00)
15/04/2016
EUR 665,397
USD 736,323
22,185
0.01
15/04/2016
EUR 23,926
USD 26,943
331
0.00
18/04/2016
EUR 747,040
USD 829,513
22,136
0.01
1,396
0.00
South Africa 8.99% (2015: 10.22%)
Corporate Bonds
9,500,000 Transnet SOC Ltd 9.500% 13/05/2021
9,870,000
53,880,000
151,910,000
4,580,000
117,405,000
590,653
Government Bonds
South Africa Government 6.750%
31/03/2021
South Africa Government 7.250%
15/01/2020
South Africa Government 8.250%
31/03/2032
South Africa Government 8.750%
28/02/2048
South Africa Government 10.500%
21/12/2026
0.23
619,516
0.24
15/04/2016
GBP 84,836
USD 120,542
3,508,940
1.38
15/04/2016
GBP 1,515
USD 2,167
11
0.00
15/04/2016
GBP 2,674
USD 3,850
(6)
(0.00)
9,158,004
3.60
18/04/2016
HUF 36,036,785
USD 130,345
277,062
0.11
18/04/2016
IDR 17,861,282,718
USD 1,358,272
18/04/2016
IDR 5,940,217,283
8,728,318
3.43
18/04/2016
IDR 11,425,407,864
22,882,493
8.99
18/04/2016
Thailand 5.77% (2015: 6.51%)
Government Bonds
1,400,000 Thailand Government 3.580% 17/12/2027
46,833
0.02
216,270,000 Thailand Government 3.650% 17/12/2021
6,877,652
2.70
178,060,000 Thailand Government 3.850% 12/12/2025
6,036,836
2.37
51,790,000 Thailand Government 3.875% 13/06/2019
1,587,545
0.62
3,900,000 Thailand Government 4.875% 22/06/2029
148,523
0.06
14,697,389
5.77
Turkey 8.73% (2015: 8.30%)
Government Bonds
10,410,000 Turkey Government 7.100% 08/03/2023
3,216,500
1.25
17,100,000 Turkey Government 8.000% 12/03/2025
5,462,745
2.15
10,430,000 Turkey Government 9.400% 08/07/2020
3,682,004
1.45
27,270,000 Turkey Government 10.400% 27/03/2019
9,873,839
3.88
22,235,088
8.73
Total Fixed Income Securities
247,325,912
Total Transferable Securities
247,325,912
Total Value of Investments excluding Financial
Derivative Instruments
Maturity
Date
Amount
Bought
247,325,912
Amount
Sold
Unrealised
Gain/(Loss)
USD
97.15
97.15
97.15
% of
NAV
Financial Derivative Instruments (0.06)% (2015: (0.11)%)
Open Forward Foreign Currency Exchange Contracts (0.06)% (2015: (0.11)%)
315
0.00
(14,115)
(0.01)
USD 451,728
(4,694)
(0.00)
USD 856,798
3,025
0.00
IDR 7,376,942,136
USD 553,202
1,953
0.00
18/04/2016
INR 40,986,091
USD 605,676
11,649
0.00
18/04/2016
INR 40,986,091
USD 605,945
11,381
0.00
18/04/2016
INR 40,986,091
USD 605,631
11,694
0.00
18/04/2016
INR 40,986,091
USD 605,765
11,560
0.00
18/04/2016
MXN 34,459,202
USD 1,918,215
89,708
0.04
18/04/2016
MXN 34,459,201
USD 1,917,226
90,697
0.04
18/04/2016
MXN 34,459,201
USD 1,919,326
88,597
0.03
18/04/2016
MXN 23,879,880
USD 1,350,000
41,471
0.02
15/04/2016
MYR 16,793,116
USD 4,069,086
231,345
0.09
15/04/2016
MYR 724,153
USD 182,383
3,060
0.00
15/04/2016
MYR 1,817,193
USD 457,616
7,736
0.00
07/04/2016
NGN 75,600,000
USD 300,000
79,770
0.03
18/04/2016
PLN 4,733,138
EUR 1,095,000
23,015
0.01
18/04/2016
PLN 3,506,053
EUR 812,056
15,978
0.01
18/04/2016
PLN 3,506,052
EUR 812,188
15,827
0.01
18/04/2016
PLN 3,506,052
EUR 812,282
15,720
0.01
18/04/2016
PLN 3,506,052
EUR 812,182
15,834
0.01
18/04/2016
PLN 3,506,052
EUR 812,047
15,988
0.01
18/04/2016
PLN 4,836,978
USD 1,232,499
66,743
0.03
18/04/2016
PLN 1,802,188
USD 460,000
24,079
0.01
18/04/2016
PLN 5,622,234
USD 1,485,654
24,513
0.01
18/04/2016
PLN 76,911
USD 20,113
546
0.00
18/04/2016
PLN 3,486,862
USD 923,990
12,602
0.00
18/04/2016
RON 2,021,599
USD 500,123
15,427
0.01
18/04/2016
RON 2,021,599
USD 500,755
14,795
0.01
18/04/2016
RON 126,443
USD 31,657
589
0.00
18/04/2016
RON 2,170,397
USD 550,171
3,326
0.00
171,777
0.07
14/06/2016
ARS 15,190,400
USD 940,000
46,290
0.02
18/04/2016
RUB 192,694,382
USD 2,698,612
23/11/2016
ARS 4,914,000
USD 280,000
8,310
0.00
29/04/2016
RUB 25,766,265
USD 377,495
5,041
0.00
04/04/2016
BRL 7,386,414
USD 1,829,135
255,067
0.10
29/04/2016
RUB 49,379,120
USD 722,350
10,748
0.00
04/04/2016
BRL 7,386,415
USD 1,829,136
255,067
0.10
18/04/2016
THB 129,745,985
USD 3,677,347
9,477
0.00
03/05/2016
BRL 1,778,887
USD 478,298
19,648
0.01
18/04/2016
THB 47,910,437
USD 1,360,620
789
0.00
03/05/2016
BRL 1,778,887
USD 478,221
19,725
0.01
18/04/2016
TRY 971,018
USD 329,326
13,867
0.01
03/05/2016
BRL 1,778,886
USD 478,221
19,725
0.01
18/04/2016
TRY 971,018
USD 329,097
14,096
0.01
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Principal
Amount
87
Portfolios of Investments (continued)
Lazard Emerging Markets Local Debt Fund (continued)
Portfolio of Investments as at 31 March 2016
Maturity
Date
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
USD
% of
NAV
LAZARD GLOBAL INVESTMENT FUNDS PLC
Financial Derivative Instruments (0.06)% (2015: (0.11)%) (continued)
Open Forward Foreign Currency Exchange Contracts (0.06)% (2015: (0.11)%) (continued)
88
Maturity
Date
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
USD
% of
NAV
Financial Derivative Instruments (0.06)% (2015: (0.11)%) (continued)
Open Forward Foreign Currency Exchange Contracts (0.06)% (2015: (0.11)%) (continued)
18/04/2016
TRY 971,018
USD 329,214
13,979
0.01
18/04/2016
USD 371,324
RUB 25,755,023
(12,325)
(0.00)
18/04/2016
TWD 15,337,585
USD 471,897
4,715
0.00
18/04/2016
USD 1,110,091
RUB 75,464,013
(14,026)
(0.01)
18/04/2016
TWD 6,030,548
USD 185,612
1,785
0.00
18/04/2016
USD 557,901
TWD 18,333,752
(11,816)
(0.00)
18/04/2016
TWD 12,166,994
USD 374,369
3,717
0.00
18/04/2016
USD 558,020
TWD 18,333,752
(11,697)
(0.00)
04/04/2016
USD 1,835,614
BRL 7,584,024
(304,347)
(0.12)
18/04/2016
USD 557,596
TWD 18,333,751
(12,121)
(0.00)
04/04/2016
USD 239,604
BRL 908,101
(16,632)
(0.01)
18/04/2016
USD 557,088
TWD 18,333,752
(12,629)
(0.00)
04/04/2016
USD 251,477
BRL 944,044
(14,901)
(0.01)
18/04/2016
USD 791,894
ZAR 12,280,141
(40,731)
(0.02)
04/04/2016
USD 481,757
BRL 1,778,887
(20,186)
(0.01)
18/04/2016
USD 790,946
ZAR 12,280,141
(41,680)
(0.02)
04/04/2016
USD 481,692
BRL 1,778,887
(20,252)
(0.01)
18/04/2016
USD 791,200
ZAR 12,280,141
(41,425)
(0.02)
04/04/2016
USD 481,691
BRL 1,778,886
(20,252)
(0.01)
18/04/2016
ZAR 32,457,330
USD 2,124,379
76,311
0.03
03/05/2016
USD 851,528
BRL 3,144,694
(28,735)
(0.01)
03/05/2016
USD 398,472
BRL 1,471,157
(13,335)
(0.01)
05/07/2016
USD 2,258,245
BRL 9,660,774
(399,427)
(0.16)
2,132,649
0.85
05/07/2016
USD 1,045,035
BRL 4,475,363
(186,134)
(0.07)
(2,302,672)
(0.91)
05/07/2016
USD 2,497,080
BRL 10,641,306
(430,337)
(0.17)
18/04/2016
USD 1,252,711
CLP 850,403,000
(17,079)
(0.01)
(170,023)
(0.06)
18/04/2016
USD 948,970
CNH 6,200,000
(10,752)
(0.00)
01/04/2016
USD 600,000
COP 1,993,200,000
(63,677)
(0.03)
(170,023)
(0.06)
01/04/2016
USD 659,487
COP 1,993,200,000
(4,190)
(0.00)
18/04/2016
USD 1,334,998
COP 4,263,782,793
(83,683)
(0.03)
29/04/2016
USD 648,881
COP 1,993,200,000
(14,024)
(0.01)
15/04/2016
USD 16,355
EUR 14,781
(493)
(0.00)
15/04/2016
USD 2,211
GBP 1,556
(26)
(0.00)
Total Investments (2015: 90.42%)
15/04/2016
USD 15,767
GBP 11,085
(166)
(0.00)
Other Net Assets (2015: 9.58%)
15/04/2016
USD 2,104
GBP 1,454
14
0.00
18/05/2016
USD 688,702
HUF 191,438,469
(5,044)
(0.00)
18/05/2016
USD 687,441
HUF 191,438,470
(6,305)
(0.00)
Analysis of total assets (unaudited)
18/05/2016
USD 688,975
HUF 191,438,470
(4,771)
(0.00)
Transferable securities admitted to an official stock exchange listing
74.51
18/04/2016
USD 1,162,227
IDR 15,277,471,908
12,515
0.00
Transferable securities dealt in on another regulated market
19.80
18/04/2016
USD 1,163,998
IDR 15,277,471,909
14,286
0.01
Over the counter financial derivative instruments
18/04/2016
USD 2,319,161
IDR 30,554,943,816
19,737
0.01
Other assets
4.88
18/04/2016
USD 1,740,000
IDR 22,985,400,000
10,225
0.00
Total Assets
100.00
18/04/2016
USD 331,515
INR 22,368,608
(5,397)
(0.00)
18/04/2016
USD 1,109,577
INR 74,807,712
(17,163)
(0.01)
The counterparties for the open forward foreign currency exchange contracts are:
18/04/2016
USD 838,908
INR 56,592,728
(13,482)
(0.01)
Barclays Bank Plc
15/04/2016
USD 290,000
MYR 1,198,715
(16,970)
(0.01)
Citibank NA
07/04/2016
USD 330,000
NGN 73,590,000
(39,673)
(0.02)
HSBC Bank Plc
07/04/2016
USD 7,710
NGN 1,680,000
(729)
(0.00)
JP Morgan Chase and Company
24/06/2016
USD 1,250,000
NGN 278,437,500
(125,994)
(0.05)
Standard Chartered Plc
17/06/2016
USD 791,774
PEN 2,662,736
(1,385)
(0.00)
State Street Bank and Trust Company
17/06/2016
USD 168,226
PEN 566,921
(646)
(0.00)
UBS AG
18/04/2016
USD 391,053
PHP 18,340,386
(6,889)
(0.00)
18/04/2016
USD 464,927
RUB 32,926,105
(25,543)
(0.01)
18/04/2016
USD 925,073
RUB 65,540,893
(51,228)
(0.02)
18/04/2016
USD 668,482
RUB 45,537,001
(9,840)
(0.00)
18/04/2016
USD 415,976
RUB 28,323,827
(5,937)
(0.00)
18/04/2016
USD 413,989
RUB 28,283,715
(7,327)
(0.00)
18/04/2016
USD 1,078,729
RUB 73,677,174
(18,772)
(0.01)
18/04/2016
USD 533,606
RUB 36,530,639
(10,557)
(0.00)
18/04/2016
USD 534,031
RUB 36,511,712
(9,850)
(0.00)
18/04/2016
USD 320,707
RUB 21,917,119
(5,772)
(0.00)
18/04/2016
USD 1,067,932
RUB 73,089,244
(20,811)
(0.01)
18/04/2016
USD 496,499
RUB 34,422,307
(16,258)
(0.01)
Lazard Global Investment Funds plc
Unrealised gain on open forward foreign currency exchange
contracts
Unrealised loss on open forward foreign currency exchange
contracts
Net unrealised loss on open forward foreign currency
exchange contracts
Total Financial Derivative Instruments
Net Assets
Fair Value
USD
% of
NAV
247,155,889
97.09
7,428,938
2.91
254,584,827
100.00
% of total assets
0.81
Fixed income securities are primarily classified by the country of incorporation of the
issuer for corporate fixed income securities and country of issuer for government type
fixed income securities.
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Emerging Markets Total Return Debt Fund
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Principal
Amount
Fair Value
USD
% of
NAV
5,620,000 Dominican Republic 5.500% 27/01/2025
5,634,050
0.90
4,745,000 Dominican Republic 6.850% 27/01/2045
4,673,825
0.76
910,000 Dominican Republic 7.450% 30/04/2044
960,050
0.16
3,440,000 Dominican Republic 7.500% 06/05/2021
3,749,600
0.61
15,017,525
2.43
6,171,638
1.00
2,630,000 Ghana Government 7.875% 07/08/2023
2,097,425
0.34
1,600,000 Ghana Government 8.125% 18/01/2026
1,264,000
0.20
3,361,425
0.54
1,090,000 Guatemala Government 4.875% 13/02/2028
1,115,615
0.18
1,970,000 Guatemala Government 5.750% 06/06/2022
2,157,150
0.35
3,272,765
0.53
15,326,000 Hungary Government 5.375% 21/02/2023
17,031,017
2.76
5,960,000 Hungary Government 5.375% 25/03/2024
6,675,200
1.08
5,536,000 Hungary Government 5.750% 22/11/2023
6,311,040
1.02
2,460,000 Hungary Government 6.375% 29/03/2021
2,801,325
0.45
4,360,000 Hungary Government 7.625% 29/03/2041
6,218,450
1.01
39,037,032
6.32
1470160
0.24
6,806,360
1.10
2,025,000 Indonesia Government 3.375% 15/04/2023
1,983,490
0.32
1,205,000 Indonesia Government 5.125% 15/01/2045
1,202,289
0.19
2,705,000 Indonesia Government 5.250% 17/01/2042
2,730,698
0.44
1,030,000 Indonesia Government 6.625% 17/02/2037
1,198,920
0.19
3,380,000 Indonesia Government 6.750% 15/01/2044
4,083,834
0.67
985,000 Indonesia Government 7.750% 17/01/2038
1,269,665
0.21
600,000 Indonesia Government 8.500% 12/10/2035
815,700
0.13
21,561,116
3.49
Transferable Securities 95.98% (2015: 90.27%)
Fixed Income Securities 95.98% (2015: 90.27%)
Transferable Securities 95.98% (2015: 90.27%) (continued)
Fixed Income Securities 95.98% (2015: 90.27%) (continued)
Bermuda Nil (2015: 0.32%)
Dominican Republic 2.43% (2015: 1.50%)
Brazil 8.73% (2015: 2.62%)
Government Bonds
Brazil Letras do Tesouro Nacional - Zero
36,750,000
coupon 01/01/2019
Brazil Notas do Tesouro Nacional Serie B
8,370,000
6.000% 15/08/2050
8,125,000 Brazil Government 5.000% 27/01/2045
33,160,000 Brazil Government 6.000% 07/04/2026
7,278,449
1.18
6,295,969
1.02
6,530,469
1.06
33,773,460
5.47
53,878,347
8.73
2,325,000
0.38
131,084
0.02
2,456,084
0.40
El Salvador Nil (2015: 0.76%)
Egypt 1.00% (2015: Nil)
Government Bonds
6,915,000 Egypt Government 5.875% 11/06/2025
Cayman Islands 0.40% (2015: 2.88%)
Corporate Bonds
Georgia Nil (2015: 0.82%)
3,100,000 Green Dragon Gas Ltd 10.000% 20/11/2017
1,000,000 Odebrecht Finance Ltd 8.250% 25/04/2018
Chile 2.28% (2015: 4.02%)
Corporate Bonds
Corp Nacional del Cobre de Chile 4.500%
13,180,000
16/09/2025
Government Bonds
13,464,556
2.18
596,875
0.10
14,061,431
2.28
625,000 Chile Government 3.625% 30/10/2042
China Nil (2015: 0.34%)
Government Bonds
Guatemala 0.53% (2015: 0.26%)
Government Bonds
Honduras Nil (2015: 0.52%)
Colombia 2.96% (2015: 2.55%)
Government Bonds
1,600,000 Colombia Government 2.625% 15/03/2023
1,492,000
0.24
4,085,000 Colombia Government 4.000% 26/02/2024
4,115,637
0.67
5,540,000 Colombia Government 4.500% 28/01/2026
5,678,500
0.92
800,000 Colombia Government 5.000% 15/06/2045
754,000
0.12
1,705,000 Colombia Government 5.625% 26/02/2044
1,702,869
0.28
1,845,000 Colombia Government 6.125% 18/01/2041
1,955,700
0.32
2,150,000 Colombia Government 7.375% 18/09/2037
2,558,500
0.41
18,257,206
2.96
10,210,355
1.65
Congo 1.65% (2015: 1.70%)
Government Bonds
13,702,876 Congo Republic 4.000% 30/06/2029
Ghana 0.54% (2015: Nil)
Hungary 6.32% (2015: 2.24%)
Government Bonds
India Nil (2015: 0.58%)
Indonesia 3.49% (2015: 3.81%)
Corporate Bonds
Perusahaan Listrik Negara PT 5.500%
22/11/2021
Perusahaan Penerbit SBSN Indonesia III
6,820,000
4.325% 28/05/2025
Government Bonds
1360000
Costa Rica Nil (2015: 1.02%)
Croatia 2.58% (2015: 1.49%)
Corporate Bonds
1,710,000 Hrvatska Elektroprivreda 5.875% 23/10/2022
1,757,726
0.28
Government Bonds
3,105,000 Croatia Government 5.500% 04/04/2023
3,283,885
0.53
2,430,000 Croatia Government 6.000% 26/01/2024
2,652,187
0.43
1,500,000 Croatia Government 6.250% 27/04/2017
1,560,638
0.25
2,575,000 Croatia Government 6.625% 14/07/2020
2,833,880
0.46
3,465,000 Croatia Government 6.750% 05/11/2019
3,808,711
0.63
15,897,027
2.58
Lazard Global Investment Funds plc
Ireland Nil (2015: 0.34%)
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Government Bonds
Bolivia Nil (2015: 0.51%)
89
Portfolios of Investments (continued)
Lazard Emerging Markets Total Return Debt Fund (continued)
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
LAZARD GLOBAL INVESTMENT FUNDS PLC
Fair Value
USD
Transferable Securities 95.98% (2015: 90.27%) (continued)
Fixed Income Securities 95.98% (2015: 90.27%) (continued)
Transferable Securities 95.98% (2015: 90.27%) (continued)
Fixed Income Securities 95.98% (2015: 90.27%) (continued)
Ivory Coast 2.97% (2015: 1.52%)
Netherlands 1.40% (2015: 0.63%)
Government Bonds
90
Principal
Amount
Corporate Bonds
9,487,000 Ivory Coast Government 5.750% 31/12/2032
8,799,193
1.43
10,050,000 Ivory Coast Government 6.375% 03/03/2028
9,534,938
1.54
18,334,131
2.97
3,169,838
0.51
Jamaica 0.51% (2015: 0.73%)
Government Bonds
3,085,000 Jamaica Government 6.750% 28/04/2028
% of
NAV
2115000 Majapahit Holding BV 7.750% 20/01/2020
Petrobras Global Finance BV 5.750%
1470000
20/01/2020
Petrobras Global Finance BV 6.850%
2,260,000
05/06/2115
Petrobras Global Finance BV 8.375%
226,000
10/12/2018
Republic of Angola Via Northern Lights III BV
3,176,250
7.000% 16/08/2019
2421675
0.39
1280737
0.21
1,587,650
0.26
225,435
0.04
3,103,196
0.50
8,618,693
1.40
6,052,125
0.98
9,135,000 Panama Government 3.750% 16/03/2025
9,443,306
1.54
9,040,000 Panama Government 3.875% 17/03/2028
9,166,560
1.48
1,345,000 Panama Government 4.000% 22/09/2024
1,416,285
0.23
9,135,000 Panama Government 6.700% 26/01/2036
11,692,800
1.89
840,000 Panama Government 7.125% 29/01/2026
1,090,950
0.18
Jersey Nil (2015: 0.30%)
Pakistan 0.98% (2015: Nil)
Jordan 0.25% (2015: Nil)
Government Bonds
Government Bonds
1,485,000 Jordan Government 6.125% 29/01/2026
5,680,000 Pakistan Government 8.250% 15/04/2024
1,564,819
0.25
Panama 6.43% (2015: 2.89%)
Kenya Nil (2015: 0.52%)
Government Bonds
Latvia Nil (2015: 0.49%)
Lithuania 2.68% (2015: 1.01%)
Government Bonds
8,685,000 Lithuania Government 6.625% 01/02/2022
10,505,549
1.70
3,265,000 Panama Government 8.875% 30/09/2027
4,701,600
0.76
5,085,000 Lithuania Government 7.375% 11/02/2020
6,021,810
0.98
1,465,000 Panama Government 9.375% 01/04/2029
2,188,344
0.35
16,527,359
2.68
39,699,845
6.43
400,000 Paraguay Republic 4.625% 25/01/2023
406,500
0.07
1,760,000 Paraguay Republic 5.000% 15/04/2026
1,775,400
0.29
4,725,000 Paraguay Republic 6.100% 11/08/2044
4,843,125
0.78
7,025,025
1.14
2,380,000 Peru Republic 7.350% 21/07/2025
3,147,550
0.51
11,996,000 Peru Republic 8.750% 21/11/2033
17,814,060
2.89
20,961,610
3.40
22,618,780
3.66
800,000 Russian Federation 4.500% 04/04/2022
821,200
0.13
4,800,000 Russian Federation 4.875% 16/09/2023
5,025,600
0.82
3,000,000 Russian Federation 5.625% 04/04/2042
3,045,000
0.49
8,891,800
1.44
Luxembourg 0.31% (2015: 1.87%)
Corporate Bonds
ContourGlobal Power Holdings SA 7.125%
1,975,000
01/06/2019
Paraguay 1.14% (2015: 1.35%)
Government Bonds
1,928,094
0.31
Marshall Islands Nil (2015: 0.15%)
Peru 3.40% (2015: 3.45%)
Malaysia 1.46% (2015: Nil)
Government Bonds
Corporate Bonds
8,885,000 Petronas Capital Ltd 3.500% 18/03/2025
9,039,147
1.46
Mexico 4.96% (2015: 4.71%)
Philippines Nil (2015: 2.57%)
Corporate Bonds
1,110,000 Petroleos Mexicanos 5.500% 27/06/2044
918,747
0.15
1,164,000 Petroleos Mexicanos 5.625% 23/01/2046
971,940
0.16
1,572,000 Petroleos Mexicanos 6.500% 02/06/2041
1,474,536
0.24
2,480,000 Petroleos Mexicanos 8.000% 03/05/2019
2,768,796
0.45
Government Bonds
3,555,000 Mexico Government 3.600% 30/01/2025
3,629,655
0.59
5,130,000 Mexico Government 4.000% 02/10/2023
5,386,500
0.87
4,368,000 Mexico Government 4.600% 23/01/2046
4,297,020
0.69
1,584,000 Mexico Government 4.750% 08/03/2044
1,589,940
0.26
3,585,000 Mexico Government 5.550% 21/01/2045
3,983,831
0.65
1,620,000 Mexico Government 5.625% 15/01/2017
1,673,055
0.27
3,300,000 Mexico Government 6.050% 11/01/2040
3,881,625
0.63
30,575,645
4.96
Morocco 0.72% (2015: 0.52%)
Government Bonds
4,280,000 Morocco Government 5.500% 11/12/2042
Lazard Global Investment Funds plc
4,461,900
Poland Nil (2015: 1.99%)
Portugal 3.66% (2015: 3.47%)
Government Bonds
22,281,000 Portugal Government 5.125% 15/10/2024
Romania Nil (2015: 1.50%)
Russia 1.44% (2015: Nil)
Government Bonds
0.72
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Emerging Markets Total Return Debt Fund (continued)
Principal
Amount
Fair Value
USD
% of
NAV
Principal
Amount
Transferable Securities 95.98% (2015: 90.27%) (continued)
Fixed Income Securities 95.98% (2015: 90.27%) (continued)
Transferable Securities 95.98% (2015: 90.27%) (continued)
Fixed Income Securities 95.98% (2015: 90.27%) (continued)
Rwanda 0.76% (2015: 0.75%)
United Kingdom 0.32% (2015: 0.34%)
Government Bonds
4,696,692
4,830,000 Rwanda Republic 6.625% 02/05/2023
0.76
Senegal 0.49% (2015: 0.50%)
Corporate Bonds
Genel Energy Finance Plc 7.500%
3,200,000
14/05/2019
Fair Value
USD
% of
NAV
1,984,000
0.32
32,388,529
5.25
United States 10.41% (2015: 14.29%)
Government Bonds
1,525,000 Senegal Government 6.250% 30/07/2024
1,418,250
1,505,000 Senegal Government 8.750% 13/05/2021
0.23
1,623,519
0.26
3,041,769
0.49
Serbia 1.67% (2015: 0.98%)
Government Bonds
1,110,000 Serbia Republic 4.875% 25/02/2020
1,129,601
0.18
1,985,000 Serbia Republic 5.875% 03/12/2018
2,079,665
0.34
6,350,000 Serbia Republic 7.250% 28/09/2021
7,112,000
1.15
10,321,266
1.67
Singapore Nil (2015: 1.20%)
Government Bonds
United States Treasury Note 1.250%
31/03/2021
United States Treasury Note 1.625%
32,350,000
15/02/2026
32,350,000
31,881,184
5.16
64,269,713
10.41
5,475,000 Uruguay Government 4.500% 14/08/2024
5,810,344
0.94
4,930,000 Uruguay Government 5.100% 18/06/2050
4,609,550
0.75
6,040,000 Uruguay Government 7.875% 15/01/2033
7,829,350
1.27
18,249,244
2.96
3,000,000 Vietnam Government 4.800% 19/11/2024
3,015,750
0.49
2,650,000 Vietnam Government 6.750% 29/01/2020
2,948,788
0.48
5,964,538
0.97
592,477,540
95.98
Fair Value
USD
% of
NAV
1
0.00
1
0.00
Uruguay 2.96% (2015: 2.02%)
Government Bonds
Venezuela Nil (2015: 0.51%)
Slovenia 7.29% (2015: 2.52%)
Government Bonds
10,340,000 Slovenia Government 5.250% 18/02/2024
11,606,133
1.88
1,275,000 Slovenia Government 5.500% 26/10/2022
1,444,617
0.23
27,640,000 Slovenia Government 5.850% 10/05/2023
31,930,419
5.18
44,981,169
7.29
Vietnam 0.97% (2015: Nil)
Government Bonds
South Africa Nil (2015: 2.25%)
Total Fixed Income Securities
Sri Lanka 1.48% (2015: 0.98%)
Government Bonds
670,000 Sri Lanka Government 5.125% 11/04/2019
656,398
0.11
410,000 Sri Lanka Government 5.875% 25/07/2022
387,141
0.06
2,350,000 Sri Lanka Government 6.125% 03/06/2025
2,161,987
0.35
1,470,000 Sri Lanka Government 6.250% 04/10/2020
1,463,010
0.24
410,000 Sri Lanka Government 6.250% 27/07/2021
402,415
0.07
4,175,000 Sri Lanka Government 6.850% 03/11/2025
4,013,219
0.65
9,084,170
1.48
Number of
Shares
Warrants 0.00% (2015: 0.00%)
Bermuda 0.00% (2015: 0.00%)
1,024,000 Gulf Keystone Petroleum Ltd
Thailand Nil (2015: 0.52%)
Total Warrants
Tunisia 0.24% (2015: 1.02%)
Total Transferable Securities
592,477,541
95.98
Total Value of Investments excluding Financial
Derivative Instruments
592,477,541
95.98
Maturity
Date
Unrealised
Gain/(Loss)
USD
% of
NAV
Corporate Bonds
Banque Centrale de Tunisie SA 5.750%
1,715,000
30/01/2025
1,488,834
0.24
Turkey 4.17% (2015: 4.44%)
Government Bonds
Amount
Bought
Amount
Sold
9,982,000 Turkey Government 4.875% 09/10/2026
10,106,775
1.64
5,050,000 Turkey Government 4.875% 16/04/2043
4,702,813
0.76
1,110,000 Turkey Government 6.625% 17/02/2045
1,326,450
0.21
1,250,000 Turkey Government 7.000% 05/06/2020
1,415,625
0.23
15/04/2016
AUD 1,494,917
USD 1,134,470
14,910
0.00
4,416,000 Turkey Government 7.375% 05/02/2025
5,304,720
0.86
15/04/2016
AUD 2,583,439
USD 1,919,237
67,063
0.01
2,700,000 Turkey Government 7.500% 14/07/2017
2,889,000
0.47
15/04/2016
AUD 264,250
USD 201,343
1,828
0.00
25,745,383
4.17
15/04/2016
AUD 295,700
USD 225,020
2,331
0.00
15/04/2016
AUD 353,980
USD 266,968
5,192
0.00
15/04/2016
AUD 49,602,732
USD 36,849,969
1,287,524
0.21
04/04/2016
BRL 12,298,553
USD 3,330,234
140,013
0.02
Lazard Global Investment Funds plc
Financial Derivative Instruments 2.19% (2015: (1.08)%)
Open Forward Foreign Currency Exchange Contracts 2.14% (2015: (0.49)%)
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Portfolio of Investments as at 31 March 2016
91
Portfolios of Investments (continued)
Lazard Emerging Markets Total Return Debt Fund (continued)
Portfolio of Investments as at 31 March 2016
Maturity
Date
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
USD
% of
NAV
LAZARD GLOBAL INVESTMENT FUNDS PLC
Financial Derivative Instruments 2.19% (2015: (1.08)%) (continued)
Open Forward Foreign Currency Exchange Contracts 2.14% (2015: (0.49)%) (continued)
92
Maturity
Date
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
USD
% of
NAV
Financial Derivative Instruments 2.19% (2015: (1.08)%) (continued)
Open Forward Foreign Currency Exchange Contracts 2.14% (2015: (0.49)%) (continued)
04/04/2016
BRL 12,298,553
USD 3,330,685
139,562
0.02
04/04/2016
USD 4,568,330
BRL 18,447,830
(637,040)
(0.11)
04/04/2016
BRL 12,298,554
USD 3,330,234
140,013
0.02
03/05/2016
USD 3,306,240
BRL 12,298,553
(136,372)
(0.02)
18/04/2016
CAD 4,064,668
USD 3,040,000
102,605
0.02
03/05/2016
USD 3,306,774
BRL 12,298,553
(135,839)
(0.02)
18/04/2016
CAD 7,247,342
USD 5,460,000
143,294
0.02
03/05/2016
USD 3,306,241
BRL 12,298,554
(136,372)
(0.02)
18/04/2016
CAD 8,129,955
USD 6,090,000
195,687
0.03
04/10/2016
USD 1,008,755
BRL 4,001,733
(62,560)
(0.01)
18/04/2016
EUR 10,440,000
PLN 44,500,396
(51,150)
(0.01)
04/10/2016
USD 1,301,245
BRL 5,156,832
(79,304)
(0.01)
15/04/2016
EUR 1,290,604
USD 1,433,638
37,564
0.01
01/04/2016
USD 1,669,401
EUR 1,495,410
(34,694)
(0.01)
15/04/2016
EUR 1,495,410
USD 1,670,032
34,635
0.01
15/04/2016
USD 1,647,278
EUR 1,488,668
(49,703)
(0.01)
15/04/2016
EUR 124,563
USD 139,263
2,731
0.00
15/04/2016
USD 2,888,545
EUR 2,606,614
(82,819)
(0.01)
15/04/2016
EUR 136,621,128
USD 151,183,847
4,555,029
0.75
15/04/2016
USD 3,455,222
EUR 3,122,531
(104,254)
(0.02)
15/04/2016
EUR 170,232,827
USD 188,378,285
5,675,663
0.93
15/04/2016
USD 4,288,659
EUR 3,875,720
(129,401)
(0.02)
15/04/2016
EUR 197
USD 219
5
0.00
15/04/2016
USD 4,714,419
EUR 4,221,470
(97,772)
(0.02)
15/04/2016
EUR 2,023,978
USD 2,239,718
67,481
0.01
15/04/2016
USD 50,447
EUR 45,590
(1,522)
(0.00)
15/04/2016
EUR 27,797,403
USD 30,760,384
926,782
0.16
15/04/2016
USD 706,013
EUR 638,034
(21,302)
(0.00)
15/04/2016
EUR 362,994
USD 405,399
8,390
0.00
15/04/2016
USD 1,471
GBP 1,036
(17)
(0.00)
15/04/2016
EUR 364,250
USD 404,891
10,329
0.00
15/04/2016
USD 10,137
GBP 7,134
(117)
(0.00)
01/04/2016
EUR 4,221,470
USD 4,712,638
97,940
0.02
18/04/2016
USD 7,280,139
CAD 9,650,465
(181,133)
(0.03)
15/04/2016
EUR 4,228,049
USD 4,761,164
58,527
0.01
18/04/2016
USD 7,279,042
CAD 9,650,466
(182,231)
(0.03)
15/04/2016
EUR 5,239,636
USD 5,900,301
72,530
0.01
18/04/2016
USD 1,487,254
IDR 19,594,577,525
12,657
0.00
15/04/2016
EUR 51,478
USD 57,969
713
0.00
18/04/2016
USD 745,324
IDR 9,797,288,762
8,026
0.00
15/04/2016
EUR 51,882
USD 58,275
867
0.00
18/04/2016
USD 746,460
IDR 9,797,288,763
9,161
0.00
15/04/2016
EUR 566,948
USD 636,400
9,882
0.00
18/04/2016
USD 3,337,235
INR 225,129,843
(53,630)
(0.01)
15/04/2016
EUR 63,654,030
USD 70,439,041
2,122,263
0.35
18/04/2016
USD 4,413,977
INR 297,590,331
(68,275)
(0.01)
15/04/2016
EUR 697,041
USD 787,590
6,990
0.00
18/04/2016
USD 1,318,788
15/04/2016
GBP 1,437
USD 2,068
(3)
(0.00)
(0.00)
(0.05)
GBP 370,870
USD 526,965
6,103
0.00
USD 1,243,068
USD 2,256,114
(21,471)
(243,000)
15/04/2016
25/04/2016
18/04/2016
INR 88,983,890
NGN 296,471,811
RUB 159,844,335
(124,938)
(0.02)
15/04/2016
GBP 56,316
USD 80,019
927
0.00
18/04/2016
USD 1,133,886
RUB 80,301,794
(62,295)
(0.01)
15/04/2016
GBP 7,761
USD 11,101
55
0.00
18/04/2016
USD 22,936,659
THB 808,975,966
(50,965)
(0.01)
18/04/2016
IDR 29,406,973,776
USD 2,236,272
(23,239)
(0.00)
18/04/2016
USD 7,069,191
TWD 232,647,071
(160,261)
(0.03)
18/04/2016
IDR 9,780,026,225
USD 743,728
(7,729)
(0.00)
18/04/2016
USD 7,079,516
TWD 232,647,071
(149,936)
(0.02)
18/04/2016
INR 189,247,532
USD 2,786,330
64,082
0.01
18/04/2016
USD 7,081,025
TWD 232,647,071
(148,427)
(0.02)
18/04/2016
INR 198,262,719
USD 2,929,847
56,350
0.01
18/04/2016
USD 7,075,641
TWD 232,647,072
(153,811)
(0.03)
18/04/2016
INR 198,262,719
USD 2,930,280
55,918
0.01
18/04/2016
USD 2,103,609
ZAR 32,125,017
(74,550)
(0.01)
18/04/2016
INR 198,262,719
USD 2,931,146
55,051
0.01
18/04/2016
USD 2,126,391
ZAR 32,527,834
(79,079)
(0.01)
18/04/2016
INR 198,262,720
USD 2,929,630
56,567
0.01
18/04/2016
USD 497,758
ZAR 7,718,881
(25,602)
(0.00)
18/04/2016
INR 248,084,195
USD 3,653,670
82,929
0.01
18/04/2016
USD 497,162
ZAR 7,718,882
(26,198)
(0.00)
15/04/2016
JPY 1,124,328,082
USD 10,008,636
(1,411)
(0.00)
18/04/2016
USD 497,322
ZAR 7,718,882
(26,038)
(0.00)
15/04/2016
JPY 21,528,576
USD 191,643
(25)
(0.00)
18/04/2016
ZAR 25,170,190
USD 1,580,000
126,603
0.02
15/04/2016
JPY 23,907,681
USD 212,188
605
0.00
18/04/2016
ZAR 27,675,672
USD 1,803,022
73,459
0.01
25/04/2016
NGN 296,471,811
USD 1,289,008
197,061
0.04
18/04/2016
ZAR 35,714,452
USD 2,326,978
94,554
0.02
18/04/2016
PLN 15,760,478
EUR 3,650,329
71,871
0.01
18/04/2016
PLN 15,760,478
EUR 3,650,371
71,823
0.01
17,462,464
2.83
18/04/2016
PLN 15,760,478
EUR 3,650,938
71,177
0.01
18/04/2016
PLN 15,760,478
EUR 3,650,963
71,148
0.01
(4,261,525)
(0.69)
18/04/2016
PLN 15,760,478
EUR 3,651,386
70,666
0.01
13,200,939
2.14
18/04/2016
RUB 120,073,064
USD 1,760,447
28,170
0.00
18/04/2016
RUB 120,073,065
USD 1,760,538
28,079
0.00
18/04/2016
TWD 102,924,523
USD 3,167,883
30,472
0.00
18/04/2016
TWD 110,527,294
USD 3,408,181
26,429
0.00
Fair Value
USD
% of
NAV
18/04/2016
TWD 207,656,430
USD 6,389,429
63,445
0.01
18/04/2016
TWD 261,769,511
USD 8,053,951
80,474
0.01
18/04/2016
TWD 84,726,995
USD 2,612,612
04/04/2016
USD 4,568,330
BRL 18,447,830
Lazard Global Investment Funds plc
Unrealised gain on open forward foreign currency exchange
contracts
Unrealised loss on open forward foreign currency exchange
contracts
Net unrealised gain on open forward foreign currency
exchange contracts
Notional
Amount
Options Purchased 0.16% (2015: Nil)
20,259
0.00
22,030,000
Call at 1.1 USD Put EUR Expiring April 2016
2,842
0.00
(637,040)
(0.11)
53,030,000
Call at 1.1 USD Put EUR Expiring April 2016
2,015
0.00
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Emerging Markets Total Return Debt Fund (continued)
Portfolio of Investments as at 31 March 2016
Fair Value
USD
% of
NAV
Financial Derivative Instruments 2.19% (2015: (1.08)%) (continued)
Options Purchased 0.16% (2015: Nil) (continued)
The counterparty for the options is JP Morgan Chase and Company.
The counterparties for the credit default swaps are:
Bank of America Corporation
18,150,000
Call at 1.1 USD Put EUR Expiring April 2016
2,341
0.00
Barclays Bank Plc
13,540,000
Put at 18 MXN Call USD Expiring July 2016
981,623
0.16
JP Morgan Chase and Company
988,821
0.16
* In the event of bankruptcy or modified restructuring, the Fund will pay/receive the
notional amount to the counterparty.
** These written options are covered.
(433,415)
(0.07)
(433,415)
(0.07)
Options purchased at fair value
Options Written** (0.07)% (2015: Nil)
(13,540,000)
Put at 17.5 USD Call MXN Expiring July 2016
Options written at fair value
CCY
Notional
Amount
Security
Name
Fund Fund Termination
Pays Receives
Date
Fixed income securities are primarily classified by the country of incorporation of the
issuer for corporate fixed income securities and country of issuer for government type
fixed income securities.
Fair
% of
Value
NAV
USD
Credit Default Swaps (0.04)% (2015: (0.59)%)
USD 41,300,000
USD 16,800,000
USD 10,150,000
USD 33,400,000
USD 21,150,000
Markit CDX EM 25
Series
Markit CDX EM 25
Series
Markit CDX EM 25
Series
Markit CDX EM 25
Series
South Africa
Government
*
1.00%
20/06/2021 3,785,712
0.61
*
1.00%
20/06/2021 1,539,793
0.25
*
1.00% 20/06/2021
*
1.00%
20/06/2021 (2,813,049) (0.46)
*
1.00%
20/06/2021 (1,853,468) (0.30)
Credit Default Swaps at positive fair value
Credit Default Swaps at negative fair value
Credit Default Swaps at fair value
Total Financial Derivative Instruments
Total Investments (2015: 89.19%)
Other Net Assets (2015: 10.81%)
Net Assets
Analysis of total assets (unaudited)
(879,904) (0.14)
5,325,505
0.86
(5,546,421) (0.90)
(220,916) (0.04)
13,535,429
2.19
606,012,970 98.17
11,298,898
1.83
617,311,868 100.00
% of Total assets
Transferable securities admitted to an official stock exchange listing
59.43
Transferable securities dealt in on another regulated market
23.88
Over the counter financial derivative instruments
3.34
Other assets
13.35
Total Assets
100.00
The counterparties for the open forward foreign currency exchange contracts are:
Barclays Bank Plc
Citibank NA
HSBC Bank
JP Morgan Chase and Company
Standard Chartered Plc
State Street Bank and Trust Company
UBS AG
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Notional
Amount
93
Portfolios of Investments (continued)
Lazard Emerging Markets Debt Blend Fund
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Principal
Amount
Fair Value
USD
Transferable Securities 97.47% (2015: 97.58%)
Fixed Income Securities 97.47% (2015: 97.58%)
Transferable Securities 97.47% (2015: 97.58%) (continued)
Fixed Income Securities 97.47% (2015: 97.58%) (continued)
Angola 0.38% (2015: Nil)
Congo Nil (2015: 0.53%)
% of
NAV
Government Bonds
5,028,366
LAZARD GLOBAL INVESTMENT FUNDS PLC
5,503,000 Angola Government 9.500% 12/11/2025
94
0.38
Costa Rica 0.52% (2015: 0.71%)
Government Bonds
Azerbaijan 0.45% (2015: Nil)
Government Bonds
6,007,163
6,282,000 Azerbaijan Republic 4.750% 18/03/2024
6,432,000 Costa Rica Government 5.625% 30/04/2043
4,992,840
0.38
2,081,000 Costa Rica Government 7.000% 04/04/2044
1,904,115
0.14
6,896,955
0.52
10,419,000 Croatia Government 6.000% 26/01/2024
11,371,661
0.86
2,295,000 Croatia Government 6.375% 24/03/2021
2,512,020
0.19
11,591,000 Croatia Government 6.625% 14/07/2020
12,753,058
0.97
4,617,000 Croatia Government 6.750% 05/11/2019
5,074,983
0.38
31,711,722
2.40
0.45
Croatia 2.40% (2015: 1.78%)
Bolivia Nil (2015: 0.63%)
Government Bonds
Brazil 9.22% (2015: 7.29%)
Government Bonds
16,057,000 Brazil Government 2.625% 05/01/2023
13,768,878
1.04
24,269,000 Brazil Government 4.250% 07/01/2025
22,291,077
1.69
8,243,000 Brazil Government 4.875% 22/01/2021
8,346,038
0.63
Dominican Republic 3.07% (2015: 1.47%)
Government Bonds
3,675,000 Brazil Government 5.000% 27/01/2045
2,953,781
0.22
12,792,000 Brazil Government 6.000% 07/04/2026
13,028,652
0.99
6,419,000 Dominican Republic 5.500% 27/01/2025
6,435,048
0.49
3,507,000 Brazil Government 8.250% 20/01/2034
3,923,456
0.30
8,980,000 Dominican Republic 6.850% 27/01/2045
8,845,300
0.67
19,750,000 Brazil Government 10.000% 01/01/2025
4,531,749
0.34
6,282,000 Dominican Republic 6.875% 29/01/2026
6,682,478
0.51
13,890,000 Brazil Government 17.100% 15/08/2050
10,448,150
0.79
8,148,000 Dominican Republic 7.450% 30/04/2044
8,596,140
0.65
205,610,000 Brazil Government - Zero coupon 01/01/2019
40,721,687
3.08
9,115,000 Dominican Republic 7.500% 06/05/2021
9,935,350
0.75
10,105,000 Brazil Government - Zero coupon 01/07/2019
1,875,868
0.14
40,494,316
3.07
121,889,336
9.22
2,649,000 Ecuador Government 7.950% 20/06/2024
2,215,226
0.17
3,235,000 Ecuador Government 10.500% 24/03/2020
2,935,763
0.22
5,150,989
0.39
7,090,020
0.54
1,689,000 El Salvador Government 5.875% 30/01/2025
1,465,208
0.11
1,683,000 El Salvador Government 6.375% 18/01/2027
1,447,380
0.11
945,000 El Salvador Government 7.650% 15/06/2035
828,056
0.06
3,740,644
0.28
4,500,650
0.34
5,430,975
0.41
Cameroon 0.16% (2015: Nil)
Ecuador 0.39% (2015: 1.20%)
Government Bonds
Government Bonds
2,160,300
2,280,000 Cameroon Republic 9.500% 19/11/2025
0.16
Cayman Islands 0.10% (2015: 1.18%)
Egypt 0.54% (2015: Nil)
Corporate Bonds
EP PetroEcuador via Noble Sovereign
Funding I Ltd 5.957% 24/09/2019
300,000 Odebrecht Finance Ltd 8.250% 25/04/2018
Government Bonds
1,433,158
1,255,805
0.10
39,324
0.00
1,295,129
0.10
Chile 0.75% (2015: 2.39%)
Corporate Bonds
Corp Nacional del Cobre de Chile 3.000%
3,323,000
17/07/2022
Corp Nacional del Cobre de Chile 3.875%
3,026,000
03/11/2021
Corp Nacional del Cobre de Chile 4.500%
3,105,000
16/09/2025
Government Bonds
3,206,163
0.24
3,097,414
0.23
3,172,037
0.24
7,944,000 Egypt Government 5.875% 11/06/2025
El Salvador 0.28% (2015: 0.77%)
Government Bonds
Gabon 0.34% (2015: Nil)
Government Bonds
5,390,000 Gabon Government 6.375% 12/12/2024
293,500,000 Chile Government 5.500% 05/08/2020
454,571
0.04
9,930,185
0.75
6,807,000 Colombia Government 4.000% 26/02/2024
6,858,053
0.52
Government Bonds
2,755,000 Colombia Government 4.375% 12/07/2021
2,878,975
0.21
Ghana Government 7.875% 07/08/2023
6,858,000 Colombia Government 4.500% 28/01/2026
7,029,450
0.53
14,712,000,000 Colombia Government 6.000% 28/04/2028
4,045,755
0.31
1,852,000 Colombia Government 6.125% 18/01/2041
1,963,119
0.15
4,660,000 Colombia Government 7.375% 18/09/2037
5,545,400
0.42
2,452,000 Guatemala Government 4.875% 13/02/2028
2,509,622
0.19
5,784,000,000 Colombia Government 7.750% 14/04/2021
1,963,176
0.15
1,338,000 Guatemala Government 5.750% 06/06/2022
1,465,110
0.11
6,065,000,000 Colombia Government 9.850% 28/06/2027
2,374,352
0.18
3,974,732
0.30
40,881,000,000 Colombia Government 10.000% 24/07/2024
15,278,904
1.16
47,937,184
3.63
Georgia Nil (2015: 0.32%)
Colombia 3.63% (2015: 4.98%)
Government Bonds
Ghana 0.41% (2015: Nil)
Lazard Global Investment Funds plc
Guatemala 0.30% (2015: 0.21%)
Government Bonds
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Emerging Markets Debt Blend Fund (continued)
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Principal
Amount
Fair Value
USD
Transferable Securities 97.47% (2015: 97.58%) (continued)
Fixed Income Securities 97.47% (2015: 97.58%) (continued)
Transferable Securities 97.47% (2015: 97.58%) (continued)
Fixed Income Securities 97.47% (2015: 97.58%) (continued)
Honduras 0.23% (2015: 0.42%)
Jamaica 1.02% (2015: 0.56%)
Government Bonds
% of
NAV
2,435,250
0.18
6,882,000 Jamaica Government 6.750% 28/04/2028
7,071,255
0.54
500,000 Honduras Government 8.750% 16/12/2020
561,250
0.05
2,421,000 Jamaica Government 7.625% 09/07/2025
2,693,363
0.20
2,996,500
0.23
3,255,000 Jamaica Government 8.000% 24/06/2019
3,531,675
0.27
100,000 Jamaica Government 8.500% 28/02/2036
107,125
0.01
13,403,418
1.02
4,674,435
0.35
1,375,938
0.10
12,235,000 Kazakhstan Government 3.875% 14/10/2024
11,742,541
0.89
145,000 Kazakhstan Government 4.875% 14/10/2044
127,963
0.01
7,057,000 Kazakhstan Government 6.500% 21/07/2045
7,374,565
0.56
20,621,007
1.56
5,847,146
0.44
Hungary 6.26% (2015: 4.37%)
Government Bonds
463,300,000 Hungary Government 2.500% 22/06/2018
1,727,863
0.13
108,580,000 Hungary Government 3.000% 26/06/2024
403,291
0.03
408,430,000 Hungary Government 3.500% 24/06/2020
1,585,936
0.12
13,888,000 Hungary Government 5.375% 21/02/2023
15,433,040
1.17
10,388,000 Hungary Government 5.375% 25/03/2024
11,634,560
0.88
4,381,320,000 Hungary Government 5.500% 24/06/2025
19,464,649
1.47
6,880,000 Hungary Government 5.750% 22/11/2023
7,843,200
0.59
363,000 Hungary Government 6.250% 29/01/2020
404,291
0.03
7,987,000 Hungary Government 6.375% 29/03/2021
9,095,196
0.69
2,038,950,000 Hungary Government 6.500% 24/06/2019
8,556,838
0.65
812,040,000 Hungary Government 7.000% 24/06/2022
3,742,841
0.28
1,940,000 Hungary Government 7.625% 29/03/2041
2,766,925
0.22
82,658,630
6.26
India Nil (2015: 0.16%)
Jersey Nil (2015: 0.23%)
Jordan 0.35% (2015: Nil)
Government Bonds
4,436,000 Jordan Government 6.125% 29/01/2026
Kazakhstan 1.56% (2015: 0.75%)
Corporate Bonds
KazMunayGas National Co JSC 9.125%
1,258,000
02/07/2018
Government Bonds
Kenya 0.44% (2015: 0.38%)
Indonesia 9.06% (2015: 7.16%)
Government Bonds
Corporate Bonds
6,163,000 Kenya Government 6.875% 24/06/2024
1,930,000 Pertamina Persero PT 4.300% 20/05/2023
1,888,023
0.14
3,271,000 Pertamina Persero PT 4.875% 03/05/2022
Perusahaan Listrik Negara PT 5.250%
2,151,000
24/10/2042
Government Bonds
3,342,962
0.25
1,933,749
0.15
3,880,000 Indonesia Government 3.375% 15/04/2023
3,800,465
0.29
3,937,000 Indonesia Government 4.125% 15/01/2025
3,964,559
0.30
4,947,000 Lebanon Government 6.375% 09/03/2020
5,006,364
0.38
2,740,000 Indonesia Government 4.750% 08/01/2026
2,874,260
0.22
2,014,000 Lebanon Government 8.250% 12/04/2021
2,192,238
0.17
5,473,000 Indonesia Government 5.125% 15/01/2045
5,460,686
0.41
7,198,602
0.55
1,045,000 Indonesia Government 5.250% 17/01/2042
1,054,927
0.08
4,790,000 Indonesia Government 5.875% 13/03/2020
5,345,638
0.40
4,538,000 Indonesia Government 5.875% 15/01/2024
5,117,730
0.39
10,705,000 Indonesia Government 7.750% 17/01/2038
13,798,745
1.04
242,577,000,000 Indonesia Government 7.875% 15/04/2019
18,491,191
1.40
241,137,000,000 Indonesia Government 8.375% 15/03/2024
18,912,706
1.43
66,569,000,000 Indonesia Government 8.375% 15/09/2026
5,266,281
0.40
47,947,000 Malaysia Government 3.654% 31/10/2019
12,404,632
0.94
39,497,000,000 Indonesia Government 8.375% 15/03/2034
3,011,423
0.23
20,983,000 Malaysia Government 3.795% 30/09/2022
5,407,768
0.41
137,084,000,000 Indonesia Government 8.750% 15/05/2031
10,933,043
0.83
24,560,000 Malaysia Government 3.955% 15/09/2025
6,379,997
0.48
60,193,000,000 Indonesia Government 9.000% 15/03/2029
4,832,644
0.37
78,209,000 Malaysia Government 4.048% 30/09/2021
20,466,843
1.55
44,659,240
3.38
2,156,000 Petroleos Mexicanos 3.500% 18/07/2018
2,190,496
0.17
7,803,000 Petroleos Mexicanos 5.500% 27/06/2044
6,458,543
0.49
846,000 Petroleos Mexicanos 5.625% 23/01/2046
706,409
0.05
7,223,000 Petroleos Mexicanos 6.375% 23/01/2045
6,717,029
0.51
581,000 Petroleos Mexicanos 6.875% 04/08/2026
628,933
0.04
6,744,000 Petroleos Mexicanos 8.000% 03/05/2019
7,529,339
0.57
2,292,424
0.17
Lebanon 0.55% (2015: Nil)
Perusahaan Penerbit SBSN Indonesia III
5,281,000
4.325% 28/05/2025
Perusahaan Penerbit SBSN Indonesia III
4,331,000
4.550% 29/03/2026
5,270,438
0.40
4,343,560
0.33
119,643,030
9.06
Iraq Nil (2015: 0.32%)
Ivory Coast 2.46% (2015: 2.54%)
Government Bonds
35,094,000 Ivory Coast Government 5.750% 31/12/2032
Latvia Nil (2015: 0.66%)
32,549,685
2.46
Government Bonds
Lithuania Nil (2015: 0.93%)
Luxembourg Nil (2015: 0.76%)
Malaysia 3.38% (2015: 4.28%)
Government Bonds
Mexico 7.27% (2015: 7.60%)
Corporate Bonds
Government Bonds
37,076,132 Mexico Government 4.000% 13/06/2019
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Government Bonds
2,292,000 Honduras Government 7.500% 15/03/2024
95
Portfolios of Investments (continued)
Lazard Emerging Markets Debt Blend Fund (continued)
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
LAZARD GLOBAL INVESTMENT FUNDS PLC
Fair Value
USD
Transferable Securities 97.47% (2015: 97.58%) (continued)
Fixed Income Securities 97.47% (2015: 97.58%) (continued)
Transferable Securities 97.47% (2015: 97.58%) (continued)
Fixed Income Securities 97.47% (2015: 97.58%) (continued)
Mexico 7.27% (2015: 7.60%) (continued)
Paraguay 1.18% (2015: 0.75%) (continued)
Government Bonds (continued)
96
Principal
Amount
% of
NAV
Government Bonds (continued)
3,108,000 Mexico Government 4.000% 02/10/2023
3,263,400
0.25
28,484,923 Mexico Government 4.000% 15/11/2040
1,762,180
0.13
1,447,000 Mexico Government 4.600% 23/01/2046
1,423,486
0.11
2,926,000 Paraguay Republic 6.100% 11/08/2044
2,999,150
0.23
15,586,194
1.18
Peru 1.47% (2015: 2.01%)
1,258,000 Mexico Government 4.750% 08/03/2044
1,262,718
0.10
Government Bonds
584,133,000 Mexico Government 5.000% 11/12/2019
33,963,835
2.57
10,250,000 Peru Republic 4.125% 25/08/2027
10,762,500
0.82
1,742,000 Mexico Government 5.625% 15/01/2017
1,799,051
0.14
3,183,000 Peru Republic 5.625% 18/11/2050
3,596,806
0.27
5,718,000 Mexico Government 5.950% 19/03/2019
6,389,865
0.48
17,163,000 Peru Republic 6.900% 12/08/2037
4,976,492
0.38
780,000 Mexico Government 6.050% 11/01/2040
917,475
0.07
19,335,798
1.47
653,000 Mexico Government 6.750% 27/09/2034
844,003
0.06
Philippines 1.96% (2015: 1.62%)
Government Bonds
59,196,000 Mexico Government 7.750% 13/11/2042
3,896,232
0.30
151,287,000 Mexico Government 10.000% 05/12/2024
11,338,701
0.86
134,281,000 Philippines Government 3.625% 09/09/2025
2,919,953
0.22
33,167,000 Mexico Government 10.000% 20/11/2036
2,667,294
0.20
6,220,000 Philippines Government 3.700% 01/03/2041
6,573,763
0.50
96,051,413
7.27
1,420,000 Philippines Government 4.200% 21/01/2024
1,602,115
0.13
2,045,000 Philippines Government 5.500% 30/03/2026
2,555,739
0.19
2,281,000 Philippines Government 6.375% 23/10/2034
3,228,756
0.24
1,985,000 Philippines Government 9.500% 02/02/2030
3,353,161
0.25
3,429,000 Philippines Government 10.625% 16/03/2025
5,620,131
0.43
25,853,618
1.96
6,045,000 Poland Government 1.500% 25/04/2020
1,599,970
0.12
2,853,000 Poland Government 2.500% 25/07/2018
784,136
0.06
31,378,000 Poland Government 3.250% 25/07/2025
8,806,225
0.67
6,343,000 Poland Government 4.750% 25/10/2016
1,736,720
0.13
11,065,000 Poland Government 5.250% 25/10/2020
3,400,453
0.26
15,090,000 Poland Government 5.500% 25/10/2019
4,588,343
0.35
85,167,000 Poland Government 5.750% 23/09/2022
27,551,876
2.09
48,467,723
3.68
23,435,000 Romania Government 4.750% 24/02/2025
6,623,579
0.50
1,100,000 Romania Government 4.875% 22/01/2024
1,213,575
0.09
2,774,000 Romania Government 6.125% 22/01/2044
3,398,150
0.26
5,244,000 Romania Government 6.750% 07/02/2022
6,229,872
0.47
17,465,176
1.32
28,000,000 Russian Federation 4.875% 16/09/2023
29,316,000
2.22
4,000,000 Russian Federation 5.000% 29/04/2020
4,208,000
0.32
6,600,000 Russian Federation 5.625% 04/04/2042
6,699,000
0.51
1,012,492,000 Russian Federation 7.000% 16/08/2023
13,613,974
1.03
389,900,000 Russian Federation 7.050% 19/01/2028
5,073,482
0.38
586,528,000 Russian Federation 7.400% 14/06/2017
8,561,984
0.65
1,060,130,000 Russian Federation 7.500% 27/02/2019
15,221,729
1.15
512,455 Russian Federation 7.500% 31/03/2030
626,475
0.05
187,695,000 Russian Federation 7.600% 14/04/2021
2,655,691
0.20
2,192,738
0.17
88,169,073
6.68
6,241,836
0.47
Morocco 0.32% (2015: 0.33%)
Government Bonds
4,165,639
4,069,000 Morocco Government 4.250% 11/12/2022
0.32
Namibia 0.18% (2015: Nil)
Government Bonds
Poland 3.68% (2015: 5.99%)
2,434,579
2,506,000 Namibia Government 5.250% 29/10/2025
0.18
Netherlands 0.15% (2015: 0.12%)
Corporate Bonds
Republic of Angola Via Northern Lights III
2,018,625
BV 7.000% 16/08/2019
1,972,197
0.15
Nigeria 0.11% (2015: 0.36%)
Government Bonds
1,456,990
1,468,000 Nigeria Government 5.125% 12/07/2018
0.11
Government Bonds
Romania 1.32% (2015: 1.62%)
Government Bonds
Pakistan 0.91% (2015: Nil)
Government Bonds
2,298,000 Pakistan Government 7.250% 15/04/2019
2,417,910
0.19
6,009,000 Pakistan Government 8.250% 15/04/2024
6,402,680
0.48
2,984,000 Pakistan Government 8.250% 30/09/2025
3,180,273
0.24
12,000,863
0.91
Panama 3.40% (2015: 2.04%)
Russia 6.68% (2015: 4.16%)
Government Bonds
Government Bonds
6,092,000 Panama Government 3.750% 16/03/2025
6,297,605
0.48
6,349,000 Panama Government 3.875% 17/03/2028
6,437,886
0.49
2,200,000 Panama Government 4.000% 22/09/2024
2,316,600
0.17
2,619,000 Panama Government 5.200% 30/01/2020
2,897,269
0.22
10,204,000 Panama Government 6.700% 26/01/2036
13,061,120
0.99
2,454,000 Panama Government 7.125% 29/01/2026
3,187,133
0.24
4,056,000 Panama Government 8.875% 30/09/2027
5,840,640
0.44
3,248,000 Panama Government 9.375% 01/04/2029
4,851,700
0.37
44,889,953
3.40
Paraguay 1.18% (2015: 0.75%)
Government Bonds
8,455,000 Paraguay Republic 4.625% 25/01/2023
8,592,394
0.65
3,960,000 Paraguay Republic 5.000% 15/04/2026
3,994,650
0.30
Lazard Global Investment Funds plc
1,314,000 Russian Federation 12.750% 24/06/2028
Rwanda 0.47% (2015: 0.50%)
Government Bonds
6,419,000 Rwanda Republic 6.625% 02/05/2023
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Emerging Markets Debt Blend Fund (continued)
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Principal
Amount
Fair Value
USD
Transferable Securities 97.47% (2015: 97.58%) (continued)
Fixed Income Securities 97.47% (2015: 97.58%) (continued)
Transferable Securities 97.47% (2015: 97.58%) (continued)
Fixed Income Securities 97.47% (2015: 97.58%) (continued)
Senegal 0.47% (2015: 0.40%)
Turkey 5.47% (2015: 7.65%)
Government Bonds
% of
NAV
0.47
400,000 Akbank TAS 7.500% 05/02/2018
132,165
0.01
3,354,000 Turkey Government 4.250% 14/04/2026
3,265,958
0.24
3,090,000 Turkey Government 4.875% 09/10/2026
3,128,625
0.24
Government Bonds
Serbia 1.44% (2015: 0.78%)
Government Bonds
4,660,000 Serbia Republic 4.875% 25/02/2020
4,742,290
0.36
4,842,000 Turkey Government 6.000% 14/01/2041
5,247,518
0.40
7,801,000 Serbia Republic 5.875% 03/12/2018
8,173,030
0.62
49,306,945 Turkey Government 6.300% 14/02/2018
16,504,527
1.25
5,483,000 Serbia Republic 7.250% 28/09/2021
6,140,960
0.46
4,191,000 Turkey Government 6.875% 17/03/2036
4,963,716
0.38
19,056,280
1.44
1,970,000 Turkey Government 7.000% 11/03/2019
2,180,297
0.17
5,848,000 Turkey Government 7.375% 05/02/2025
7,024,910
0.53
4,252,000 Turkey Government 7.500% 07/11/2019
4,860,568
0.37
77,556,000 Turkey Government 8.000% 12/03/2025
24,775,943
1.88
72,084,227
5.47
Singapore Nil (2015: 0.15%)
Slovenia 3.31% (2015: 1.01%)
Government Bonds
3,050,000 Slovenia Republic 4.125% 18/02/2019
3,222,248
0.24
Uruguay 0.72% (2015: 1.21%)
Government Bonds
9,469,000 Slovenia Republic 5.250% 18/02/2024
10,628,479
0.80
10,598,000 Slovenia Republic 5.500% 26/10/2022
12,007,884
0.91
6,219,000 Uruguay Government 4.375% 27/10/2027
6,358,928
0.48
15,496,000 Slovenia Republic 5.850% 10/05/2023
17,901,367
1.36
2,470,000 Uruguay Government 7.625% 21/03/2036
3,186,299
0.24
43,759,978
3.31
9,545,227
0.72
South Africa 4.24% (2015: 6.30%)
Vietnam 0.59% (2015: 0.26%)
Corporate Bonds
Government Bonds
1,216,000 Eskom Holdings SOC Ltd 5.750% 26/01/2021
19,820,000 Transnet SOC Ltd 9.500% 13/05/2021
1,124,800
0.09
4,032,000 Vietnam Government 4.800% 19/11/2024
4,053,168
0.31
1,232,288
0.09
3,346,000 Vietnam Government 6.750% 29/01/2020
3,723,261
0.28
7,776,429
0.59
1,531,132
0.12
Total Fixed Income Securities 97.47% (2015: 97.58%)
1,287,045,987
97.47
Total Transferable Securities 97.47% (2015: 97.58%)
1,287,045,987
97.47
Total Value of Investments excluding Financial
Derivative Instruments 97.47% (2015: 97.58%)
1,287,045,987
97.47
Government Bonds
1,860,000 South Africa Government 4.665% 17/01/2024
1,884,180
0.14
2,562,000 South Africa Government 5.375% 24/07/2044
2,568,405
0.19
6,012,000 South Africa Government 5.500% 09/03/2020
6,396,768
0.48
175,000 South Africa Government 6.250% 08/03/2041
192,499
0.02
69,790,000 South Africa Government 6.750% 31/03/2021
4,380,550
0.33
5,734,000 South Africa Government 8.250% 15/09/2017
391,008
0.04
144,403,000 South Africa Government 8.250% 31/03/2032
8,705,439
0.66
155,200,000 South Africa Government 6.500% 28/02/2041
7,313,808
0.55
293,821,000 South Africa Government 10.500% 21/12/2026
21,843,730
1.65
1 South Africa Government 13.500% 15/09/2016
-
0.00
56,033,475
4.24
Zambia 0.12% (2015: 0.25%)
Government Bonds
2,012,000 Zambia Government 5.375% 20/09/2022
Maturity
Date
Sri Lanka 1.43% (2015: 1.66%)
Government Bonds
4,174,000 Sri Lanka Government 6.125% 03/06/2025
3,840,056
0.30
15,585,000 Sri Lanka Government 6.850% 03/11/2025
14,981,081
1.13
18,821,137
1.43
Tanzania 0.11% (2015: Nil)
Government Bonds
1,398,444
1,377,778 Tanzania Government 6.538% 09/03/2020
0.11
Thailand 2.03% (2015: 3.19%)
Government Bonds
79,269,000 Thailand Government 3.625% 16/06/2023
2,566,752
0.20
543,151,000 Thailand Government 3.850% 12/12/2025
18,414,656
1.39
190,893,000 Thailand Government 3.875% 13/06/2019
5,851,541
0.44
26,832,949
2.03
Tunisia 0.19% (2015: 0.64%)
Corporate Bonds
Banque Centrale de Tunisie SA 5.750%
2,833,000
30/01/2025
Lazard Global Investment Funds plc
2,459,398
0.19
Amount
Bought
Amount
Sold
Gain/(Loss)
USD
% of
NAV
Financial Derivative Instruments 0.62% (2015: (0.13)%)
Open Forward Foreign Currency Exchange Contracts 0.62% (2015: (0.13)%)
04/04/2016
BRL 707,136
USD 192,000
7,530
0.00
04/04/2016
BRL 4,604,424
USD 1,246,967
52,250
0.00
04/04/2016
BRL 4,604,424
USD 1,246,798
52,419
0.00
04/04/2016
BRL 4,604,425
USD 1,246,798
52,419
0.00
03/05/2016
BRL 15,910,212
USD 4,344,085
109,503
0.01
03/05/2016
BRL 7,236,788
USD 1,975,915
49,808
0.00
15/04/2016
CHF 879,995
USD 885,554
33,787
0.00
15/04/2016
CHF 42,361,804
USD 42,787,108
1,468,791
0.11
15/04/2016
CHF 1,095,961
USD 1,131,808
13,156
0.00
18/04/2016
COP 12,093,750,000
USD 3,750,000
273,933
0.03
18/04/2016
COP 9,058,505,364
USD 2,836,234
177,787
0.01
15/04/2016
EUR 2,699,830
USD 2,977,162
100,462
0.01
15/04/2016
EUR 131,460,714
USD 145,473,375
4,382,978
0.34
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Corporate Bonds
6,165,900
6,630,000 Senegal Government 6.250% 30/07/2024
97
Portfolios of Investments (continued)
Lazard Emerging Markets Debt Blend Fund (continued)
Portfolio of Investments as at 31 March 2016
Maturity
Date
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
USD
% of
NAV
LAZARD GLOBAL INVESTMENT FUNDS PLC
Financial Derivative Instruments 0.62% (2015: (0.13)%) (continued)
Open Forward Foreign Currency Exchange Contracts 0.62% (2015: (0.13)%) (continued)
98
Maturity
Date
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
USD
% of
NAV
Financial Derivative Instruments 0.62% (2015: (0.13)%) (continued)
Open Forward Foreign Currency Exchange Contracts 0.62% (2015: (0.13)%) (continued)
15/04/2016
EUR 55,322,337
USD 61,219,256
1,844,480
0.15
18/04/2016
USD 285,000
TRY 825,716
(6,839)
(0.00)
15/04/2016
EUR 1,180,409
USD 1,311,230
34,356
0.00
18/04/2016
USD 87,000
ZAR 1,338,965
(3,785)
(0.00)
15/04/2016
EUR 3,413,191
USD 3,843,560
47,247
0.00
18/04/2016
ZAR 5,299,418
USD 341,145
18,169
0.00
18/05/2016
HUF 123,522,278
USD 440,000
7,627
0.00
18/04/2016
ZAR 21,252,000
USD 1,369,250
71,691
0.01
18/04/2016
IDR 9,605,274,000
USD 725,200
(2,352)
(0.00)
18/04/2016
INR 216,418,308
USD 3,198,143
61,511
0.00
18/04/2016
INR 216,418,308
USD 3,199,561
60,092
0.00
9,963,867
0.75
18/04/2016
INR 216,418,308
USD 3,197,906
61,747
0.00
(1,723,134)
(0.13)
18/04/2016
INR 216,418,308
USD 3,198,615
61,038
0.00
18/04/2016
MXN 1,056,631
USD 58,834
2,736
0.00
8,240,733
0.62
18/04/2016
MXN 31,145,940
USD 1,732,884
81,977
0.01
18/04/2016
MXN 31,145,940
USD 1,734,783
80,078
0.01
8,240,733
0.62
18/04/2016
MXN 31,145,940
USD 1,733,778
81,083
0.01
17/06/2016
PEN 452,599
USD 133,000
1,817
0.00
1,295,286,720
98.09
18/04/2016
RON 15,435,424
USD 3,818,570
117,789
0.01
18/04/2016
RON 15,435,423
USD 3,823,394
112,965
0.01
18/04/2016
RUB 19,608,000
USD 285,000
7,082
0.00
18/04/2016
THB 146,933,800
USD 4,164,495
10,733
0.00
18/04/2016
THB 233,564,350
USD 6,610,000
26,896
0.00
18/04/2016
TRY 5,676,986
USD 1,925,381
81,072
0.01
18/04/2016
TRY 5,676,986
USD 1,924,728
81,725
0.01
18/04/2016
TRY 5,676,985
USD 1,924,043
82,410
0.01
04/04/2016
USD 3,595,763
BRL 14,520,409
(501,418)
(0.05)
03/05/2016
USD 1,237,815
BRL 4,604,425
(51,056)
(0.00)
03/05/2016
USD 1,237,815
BRL 4,604,424
(51,056)
(0.00)
03/05/2016
USD 1,238,015
BRL 4,604,424
(50,856)
(0.00)
03/05/2016
USD 2,072,052
BRL 7,650,017
(69,341)
(0.01)
03/05/2016
USD 4,427,948
BRL 16,352,410
(149,421)
(0.01)
15/04/2016
USD 959,685
CHF 950,179
(32,978)
(0.00)
18/04/2016
USD 325,000
COP 1,001,000,000
(8,061)
(0.00)
01/04/2016
USD 13,194
EUR 11,824
(281)
(0.00)
04/04/2016
USD 38
EUR 34
05/04/2016
USD 22,160
EUR 19,505
15/04/2016
USD 1,391,856
15/04/2016
USD 3,270,850
18/05/2016
(1)
(0.00)
(67)
(0.00)
EUR 1,257,839
(41,996)
(0.00)
EUR 2,955,912
(98,691)
(0.01)
USD 3,051,153
HUF 849,685,049
(27,986)
(0.00)
18/05/2016
USD 3,056,751
HUF 849,685,048
(22,389)
(0.00)
18/05/2016
USD 3,057,961
HUF 849,685,049
(21,178)
(0.00)
18/04/2016
USD 3,814,096
IDR 50,136,286,385
41,070
0.00
18/04/2016
USD 3,819,908
46,882
0.00
18/04/2016
USD 7,610,821
64,771
0.00
18/04/2016
USD 892,763
IDR 50,136,286,385
IDR
100,272,572,770
INR 60,238,267
(14,535)
(0.00)
18/04/2016
USD 2,259,164
INR 152,403,224
(36,305)
(0.00)
18/04/2016
USD 2,988,073
INR 201,455,858
(46,219)
(0.00)
18/04/2016
USD 6,670,000
INR 451,092,100
(124,268)
(0.01)
18/04/2016
USD 260,000
MXN 4,566,549
(6,091)
(0.00)
17/06/2016
USD 497,668
PEN 1,677,142
(1,908)
(0.00)
17/06/2016
USD 2,342,332
PEN 7,877,261
(4,096)
(0.00)
18/04/2016
USD 262,000
RON 1,046,585
(4,901)
(0.00)
18/04/2016
USD 2,310,000
RON 9,166,196
(27,573)
(0.00)
18/04/2016
USD 1,919,913
RUB 135,968,230
(105,479)
(0.01)
18/04/2016
USD 3,820,087
RUB 270,650,880
(211,547)
(0.03)
18/04/2016
USD 202,000
THB 7,124,944
(460)
(0.00)
Lazard Global Investment Funds plc
Unrealised gain on open forward foreign currency exchange
contracts
Unrealised loss on open forward foreign currency exchange
contracts
Net unrealised gain on open forward foreign currency
exchange contracts
Total Financial Derivative Instruments
Total Investments
Other Net Assets
Net Assets
25,208,882
1.91
1,320,495,602
100.00
Analysis of total assets (unaudited)
% of total assets
Transferable securities admitted to an official stock exchange listing
78.47
Transferable securities dealt in on another regulated market
18.61
Over the counter financial derivative instruments
0.75
Other assets
2.17
Total Assets
100.00
The counterparties for the open forward foreign currency exchange contracts are:
Barclays Bank Plc
HSBC Bank Plc
JP Morgan Chase and Company
Standard Chartered Plc
State Street Bank and Trust Company
UBS AG
Fixed income securities are primarily classified by the country of incorporation of the
issuer for corporate fixed income securities and country of issuer for government type
fixed income securities.
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Emerging Markets Debt Unrestricted Blend Fund
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Principal
Amount
Fair Value
USD
Transferable Securities 95.98%
Fixed Income Securities 95.98%
Transferable Securities 95.98% (continued)
Fixed Income Securities 95.98% (continued)
Angola 0.24%
Colombia 3.45%
Government Bonds
% of
NAV
0.24
Argentina 4.23%
Government Bonds
1,608,000 Colombia Government 4.000% 26/02/2024
1,620,060
0.34
1,645,000 Colombia Government 4.375% 12/07/2021
1,719,025
0.36
1,722,000 Colombia Government 4.500% 28/01/2026
1,765,050
0.37
5,504,000,000 Colombia Government 6.000% 28/04/2028
1,513,583
0.32
11,180,000 Argentina Government 2.500% 31/12/2038
7,504,574
1.57
648,000 Colombia Government 6.125% 18/01/2041
686,880
0.14
2,839,000 Argentina Government 8.750% 02/06/2017
3,371,313
0.71
1,945,000 Colombia Government 7.375% 18/09/2037
2,314,550
0.48
7,751,868 Argentina Government 8.280% 31/12/2033
9,302,242
1.95
2,185,000,000 Colombia Government 7.750% 14/04/2021
741,622
0.16
20,178,129
4.23
2,291,000,000 Colombia Government 9.850% 28/06/2027
896,890
0.19
14,078,000,000 Colombia Government 10.000% 24/07/2024
5,261,525
1.09
16,519,185
3.45
Azerbaijan 0.40%
Government Bonds
1,905,806
1,993,000 Azerbaijan Republic 4.750% 18/03/2024
0.40
Costa Rica 0.25%
Government Bonds
Belarus 0.11%
Government Bonds
522,500
500,000 Belarus Government 8.950% 26/01/2018
1,203,000 Costa Rica Government 5.625% 30/04/2043
933,829
0.2
259,000 Costa Rica Government 7.000% 04/04/2044
236,985
0.05
1,170,814
0.25
3,346,000 Croatia Government 6.000% 26/01/2024
3,651,942
0.76
810,000 Croatia Government 6.375% 24/03/2021
886,594
0.18
1,899,000 Croatia Government 6.625% 14/07/2020
2,089,750
0.44
2,268,000 Croatia Government 6.750% 05/11/2019
2,492,974
0.52
9,121,260
1.90
0.11
Croatia 1.90%
Belize 0.20%
Government Bonds
Government Bonds
967,500
1,935,000 Belize Government 5.000% 20/02/2038
0.20
Brazil 8.41%
Government Bonds
Dominican Republic 2.64%
4,793,000 Brazil Government 2.625% 05/01/2023
4,109,998
0.86
7,209,000 Brazil Government 4.250% 07/01/2025
6,621,466
1.39
1,930,000 Brazil Government 4.875% 22/01/2021
1,954,125
0.41
3,161,000 Dominican Republic 5.500% 27/01/2025
3,168,902
0.66
2,000,000 Brazil Government 5.000% 27/01/2045
1,607,500
0.34
2,108,000 Dominican Republic 6.875% 29/01/2026
2,242,385
0.46
4,518,000 Brazil Government 6.000% 07/04/2026
4,601,582
0.95
2,467,000 Dominican Republic 6.850% 27/01/2045
2,429,995
0.51
5,420,000 Brazil Government 6.000% 15/08/2050
4,076,960
0.85
1,787,000 Dominican Republic 7.450% 30/04/2044
1,885,285
0.39
715,000 Brazil Government 8.250% 20/01/2034
799,906
0.17
2,724,000 Dominican Republic 7.500% 06/05/2021
2,969,160
0.62
7,480,000 Brazil Government 10.000% 01/01/2025
1,716,328
0.36
12,695,727
2.64
71,350,000 Brazil Government - Zero coupon 01/01/2019
14,131,085
2.96
556,913
0.12
40,175,863
8.41
3,000,000 Brazil Government - Zero coupon 01/07/2019
Cameroon 0.09%
Government Bonds
Ecuador 0.33%
Government Bonds
261,000 Ecuador Government 7.950% 20/06/2024
218,260
0.04
1,374,863
0.29
1,593,123
0.33
2,009,017
0.42
86,000 El Salvador Government 5.875% 30/01/2025
74,605
0.02
85,000 El Salvador Government 6.375% 18/01/2027
73,100
0.02
48,000 El Salvador Government 7.650% 15/06/2035
42,060
0.01
189,765
0.05
1,160,650
0.24
1,531,200
0.32
1,515,000 Ecuador Government 10.500% 24/03/2020
Government Bonds
450,000 Cameroon Republic 9.500% 19/11/2025
426,375
0.09
Egypt 0.42%
Government Bonds
Cayman Islands 0.08%
Corporate Bonds
EP PetroEcuador via Noble Sovereign
445,789
Funding I Ltd 6.258% 24/09/2019
2,251,000 Egypt Government 5.875% 11/06/2025
390,623
0.08
Chile 0.78%
Corporate Bonds
Corp Nacional del Cobre de Chile 3.000%
1,278,000
17/07/2022
Corp Nacional del Cobre de Chile 3.875%
1,152,000
03/11/2021
Corp Nacional del Cobre de Chile 4.500%
1,175,000
16/09/2025
Government Bonds
91,500,000 Chile Government 5.500% 05/08/2020
1,233,066
0.26
1,179,187
0.24
1,200,368
0.25
141,715
0.03
3,754,336
0.78
El Salvador 0.05%
Government Bonds
Gabon 0.24%
Government Bonds
1,390,000 Gabon Government 6.375% 12/12/2024
Ghana 0.32%
Government Bonds
1,920,000 Ghana Government 7.875% 07/08/2023
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Government Bonds
1,144,015
1,252,000 Angola Republic 9.500% 12/11/2025
99
Portfolios of Investments (continued)
Lazard Emerging Markets Debt Unrestricted Blend Fund (continued)
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Principal
Amount
Transferable Securities 95.98% (continued)
Fixed Income Securities 95.98% (continued)
Transferable Securities 95.98% (continued)
Fixed Income Securities 95.98% (continued)
Guatemala 0.16%
Jamaica 0.75%
LAZARD GLOBAL INVESTMENT FUNDS PLC
Government Bonds
100
Fair Value
USD
% of
NAV
Government Bonds
200,000 Guatemala Government 4.875% 13/02/2028
204,700
0.04
1,523,000 Jamaica Government 6.750% 28/04/2028
1,564,883
0.33
517,000 Guatemala Government 5.750% 06/06/2022
566,115
0.12
754,000 Jamaica Government 7.625% 09/07/2025
838,825
0.18
770,815
0.16
1,075,000 Jamaica Government 8.000% 24/06/2019
1,166,375
0.24
3,570,083
0.75
1,447,852
0.30
Corporate Bonds
KazMunayGas National Co JSC 9.125%
1,017,000
02/07/2018
Government Bonds
1,112,344
0.22
3,640,000 Kazakhstan Government 3.875% 14/10/2024
3,493,491
0.73
235,000 Kazakhstan Government 5.125% 21/07/2025
242,696
0.05
2,443,000 Kazakhstan Government 6.500% 21/07/2045
2,552,934
0.54
7,401,465
1.54
1,562,591
0.33
9,873,000 Malaysia Government 3.654% 31/10/2019
2,554,298
0.53
9,267,000 Malaysia Government 3.795% 30/09/2022
2,388,304
0.50
12,320,000 Malaysia Government 3.955% 15/09/2025
3,200,389
0.67
31,021,000 Malaysia Government 4.048% 30/09/2021
8,118,017
1.70
16,261,008
3.40
Honduras 0.14%
Government Bonds
Jordan 0.30%
398,000 Honduras Government 7.500% 15/03/2024
422,875
0.09
200,000 Honduras Government 8.750% 16/12/2020
224,500
0.05
647,375
0.14
Hungary 5.55%
Government Bonds
1,374,000 Jordan Government 6.125% 29/01/2026
Kazakhstan 1.54%
Government Bonds
199,920,000 Hungary Government 2.500% 22/06/2018
745,595
0.16
41,020,000 Hungary Government 3.000% 26/06/2024
152,358
0.03
230,090,000 Hungary Government 3.500% 24/06/2020
893,441
0.19
5,250,000 Hungary Government 5.375% 21/02/2023
5,834,064
1.22
2,984,000 Hungary Government 5.375% 25/03/2024
3,342,080
0.70
1,804,380,000 Hungary Government 5.500% 24/06/2025
8,016,221
1.68
1,620,000 Hungary Government 5.750% 22/11/2023
1,846,800
0.39
137,000 Hungary Government 6.250% 29/01/2020
152,584
0.03
1,788,000 Hungary Government 6.375% 29/03/2021
2,036,085
0.43
224,530,000 Hungary Government 6.500% 24/06/2019
942,282
0.20
306,710,000 Hungary Government 7.000% 24/06/2022
1,413,683
0.30
734,000 Hungary Government 7.625% 29/03/2041
1,046,868
0.22
26,422,061
5.55
Indonesia 8.79%
Corporate Bonds
Kenya 0.33%
Government Bonds
1,647,000 Kenya Government 6.875% 24/06/2024
Malaysia 3.40%
Government Bonds
590,000 Pertamina Persero PT 4.300% 20/05/2023
577,168
0.12
1,026,000 Pertamina Persero PT 4.875% 03/05/2022
Perusahaan Listrik Negara PT 5.250%
669,000
24/10/2042
Government Bonds
1,048,572
0.22
601,431
0.13
1,470,000 Indonesia Government 3.375% 15/04/2023
1,439,867
0.30
814,000 Petroleos Mexicanos 3.500% 18/07/2018
827,024
0.17
200,000 Indonesia Government 4.125% 15/01/2025
201,400
0.04
3,132,000 Petroleos Mexicanos 5.500% 27/06/2044
2,592,356
0.53
815,000 Indonesia Government 4.750% 08/01/2026
854,935
0.18
321,000 Petroleos Mexicanos 5.625% 23/01/2046
268,035
0.06
2,702,000 Indonesia Government 5.125% 15/01/2045
2,695,920
0.56
2,876,000 Petroleos Mexicanos 6.375% 23/01/2045
2,674,536
0.55
325,000 Indonesia Government 5.250% 17/01/2042
328,088
0.07
29,000 Petroleos Mexicanos 6.875% 04/08/2026
31,393
0.01
1,320,000 Indonesia Government 5.875% 13/03/2020
1,473,119
0.31
2,138,000 Petroleos Mexicanos 8.000% 03/05/2019
2,386,970
0.50
1,662,000 Indonesia Government 5.875% 15/01/2024
1,874,321
0.39
Mexico 7.11%
Corporate Bonds
Government Bonds
4,615,000 Indonesia Government 7.750% 17/01/2038
5,948,735
1.25
13,883,133 Mexico Government 4.000% 13/06/2019
858,397
0.18
60,988,000,000 Indonesia Government 7.875% 15/04/2019
4,649,001
0.97
396,000 Mexico Government 4.000% 02/10/2023
415,800
0.09
91,080,000,000 Indonesia Government 8.375% 15/03/2024
7,143,529
1.50
10,725,401 Mexico Government 4.000% 15/11/2040
663,512
0.14
14,144,000,000 Indonesia Government 8.375% 15/09/2026
1,118,933
0.23
467,000 Mexico Government 4.600% 23/01/2046
459,411
0.10
20,377,000,000 Indonesia Government 8.375% 15/03/2034
1,553,631
0.33
684,000 Mexico Government 4.750% 08/03/2044
686,565
0.14
48,410,000,000 Indonesia Government 8.750% 15/05/2031
3,860,907
0.81
190,330,000 Mexico Government 5.000% 11/12/2019
11,066,550
2.32
38,599,000,000 Indonesia Government 9.000% 15/03/2029
3,098,952
0.65
938,000 Mexico Government 5.625% 15/01/2017
968,720
0.20
0.41
1,580,000 Mexico Government 5.950% 19/03/2019
1,765,650
0.37
178,000 Mexico Government 6.050% 11/01/2040
209,373
0.04
732,000 Mexico Government 6.750% 27/09/2034
946,109
0.20
22,360,000 Mexico Government 7.750% 13/11/2042
1,471,717
0.31
69,020,000 Mexico Government 10.000% 05/12/2024
5,172,931
1.08
6,900,000 Mexico Government 10.000% 20/11/2036
554,899
0.12
34,019,948
7.11
Perusahaan Penerbit SBSN Indonesia III
1,939,000
4.325% 28/05/2025
Perusahaan Penerbit SBSN Indonesia III
1,509,000
4.550% 29/03/2026
1,935,122
1,513,376
0.32
41,917,007
8.79
Ivory Coast 2.24%
Government Bonds
Ivory Coast Government 5.750%
11,551,000
31/12/2032
10,713,553
Lazard Global Investment Funds plc
2.24
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Emerging Markets Debt Unrestricted Blend Fund (continued)
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Principal
Amount
Fair Value
USD
Transferable Securities 95.98% (continued)
Fixed Income Securities 95.98% (continued)
Transferable Securities 95.98% (continued)
Fixed Income Securities 95.98% (continued)
Morocco 0.31%
Poland 3.65%
Government Bonds
% of
NAV
0.31
Namibia 0.19%
Government Bonds
892,808
919,000 Namibia Government 5.250% 29/10/2025
0.19
Netherlands 0.13%
Corporate Bonds
Republic of Angola Via Northern Lights III BV
628,250
7.000% 16/08/2019
613,800
0.13
Pakistan 0.71%
Government Bonds
716,000 Pakistan Government 7.250% 15/04/2019
753,361
0.16
1,246,000 Pakistan Government 8.250% 15/04/2024
1,327,632
0.28
1,191,000 Pakistan Government 8.250% 30/09/2025
1,269,338
0.27
3,350,331
0.71
Panama 3.38%
Government Bonds
1,888,000 Panama Government 3.750% 16/03/2025
1,951,720
0.41
2,241,000 Panama Government 3.875% 17/03/2028
2,272,374
0.48
685,000 Panama Government 4.000% 22/09/2024
721,305
0.15
1,020,000 Panama Government 5.200% 30/01/2020
1,128,375
0.24
4,261,000 Panama Government 6.700% 26/01/2036
5,454,081
1.14
806,000 Panama Government 7.125% 29/01/2026
1,046,793
0.22
1,186,000 Panama Government 8.875% 30/09/2027
1,707,840
0.36
1,227,000 Panama Government 9.375% 01/04/2029
1,832,831
0.38
16,115,319
3.38
Paraguay 1.03%
Government Bonds
2,571,113
0.54
1,395,000 Paraguay Republic 5.000% 15/04/2026
1,407,206
0.29
947,100
0.20
4,925,419
1.03
Peru 1.47%
0.14
2,057,773
0.43
13,252,000 Poland Government 3.250% 25/07/2025
3,719,169
0.78
592,000 Poland Government 4.750% 25/10/2016
162,090
0.03
3,015,000 Poland Government 5.250% 25/10/2020
926,558
0.19
8,550,000 Poland Government 5.500% 25/10/2019
2,599,757
0.54
22,608,000 Poland Government 5.750% 23/09/2022
7,313,781
1.54
17,428,909
3.65
10,580,000 Romania Government 4.750% 24/02/2025
2,990,291
0.63
416,000 Romania Government 4.875% 22/01/2024
458,951
0.09
856,000 Romania Government 6.125% 22/01/2044
1,048,600
0.22
1,916,000 Romania Government 6.750% 07/02/2022
2,276,208
0.48
6,774,050
1.42
6,200,000 Russian Federation 4.875% 16/09/2023
6,491,401
1.36
1,500,000 Russian Federation 5.000% 29/04/2020
1,578,000
0.33
1,600,000 Russian Federation 5.625% 04/04/2042
1,624,000
0.34
412,988,000 Russian Federation 7.000% 16/08/2023
5,553,038
1.15
160,870,000 Russian Federation 7.050% 19/01/2028
2,093,283
0.44
230,552,000 Russian Federation 7.400% 14/06/2017
3,365,539
0.70
255,160,000 Russian Federation 7.500% 27/02/2019
3,663,679
0.77
883,095 Russian Federation 7.500% 31/03/2030
1,079,584
0.23
62,305,000 Russian Federation 7.600% 14/04/2021
881,551
0.18
827,700
0.17
27,157,775
5.67
2,295,836
0.48
1,832,100
0.38
1,620,000 Serbia Republic 4.875% 25/02/2020
1,648,608
0.35
2,089,000 Serbia Republic 5.875% 03/12/2018
2,188,624
0.47
1,412,000 Serbia Republic 7.250% 28/09/2021
1,581,440
0.33
5,418,672
1.15
625,000 Slovenia Government 4.125% 18/02/2019
660,297
0.14
4,266,000 Slovenia Government 5.250% 18/02/2024
4,788,372
1.00
3,517,000 Slovenia Government 5.500% 26/10/2022
3,984,877
0.83
5,227,000 Slovenia Government 5.850% 10/05/2023
6,038,361
1.26
15,471,907
3.23
Romania 1.42%
Government Bonds
Russia 5.67%
Government Bonds
496,000 Russian Federation 12.750% 24/06/2028
Government Bonds
2,361,000 Rwanda Republic 6.625% 02/05/2023
Senegal 0.38%
Government Bonds
1,970,000 Senegal Government 6.250% 30/07/2024
Government Bonds
2,983,000 Peru Republic 4.125% 25/08/2027
3,132,150
0.67
1,707,000 Peru Republic 5.625% 18/11/2050
1,928,919
0.40
6,217,000 Peru Republic 6.900% 12/08/2037
1,802,648
0.38
284,000 Peru Republic 6.950% 12/08/2031
83,303
0.02
6,947,020
1.47
Philippines 1.92%
Government Bonds
39,359,000 Philippines Government 3.625% 09/09/2025
855,865
0.18
2,078,000 Philippines Government 3.700% 01/03/2041
2,196,186
0.46
485,000 Philippines Government 4.200% 21/01/2024
547,201
0.11
865,000 Philippines Government 5.500% 30/03/2026
1,081,034
0.23
692,000 Philippines Government 6.375% 23/10/2034
979,526
0.21
760,000 Philippines Government 9.500% 02/02/2030
1,283,830
0.27
1,339,000 Philippines Government 10.625% 16/03/2025
2,194,621
0.46
9,138,263
1.92
Lazard Global Investment Funds plc
649,781
7,487,000 Poland Government 2.500% 25/07/2018
Rwanda 0.48%
2,530,000 Paraguay Republic 4.625% 25/01/2023
924,000 Paraguay Republic 6.100% 11/08/2044
2,455,000 Poland Government 1.500% 25/04/2020
Serbia 1.15%
Government Bonds
Slovenia 3.23%
Government Bonds
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Government Bonds
1,464,986
1,431,000 Morocco Government 4.250% 11/12/2022
101
Portfolios of Investments (continued)
Lazard Emerging Markets Debt Unrestricted Blend Fund (continued)
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Principal
Amount
Transferable Securities 95.98% (continued)
Fixed Income Securities 95.98% (continued)
Transferable Securities 95.98% (continued)
Fixed Income Securities 95.98% (continued)
South Africa 4.05%
Ukraine 1.17% (continued)
Corporate Bonds
LAZARD GLOBAL INVESTMENT FUNDS PLC
% of
NAV
Government Bonds (continued)
379,000 Eskom Holdings SOC Ltd 5.750% 26/01/2021
102
Fair Value
USD
6,180,000 Transnet SOC Ltd 9.500% 13/05/2021
350,575
0.07
216,000 Ukraine Government 7.750% 01/09/2022
199,260
0.04
384,235
0.08
1,653,000 Ukraine Government 7.750% 01/09/2024
1,487,700
0.31
805,000 Ukraine Government 7.750% 01/09/2025
716,450
0.15
530,000 Ukraine Government 7.750% 01/09/2027
469,713
0.10
5,709,372
1.17
Government Bonds
100,000 South Africa Government 4.665% 17/01/2024
101,300
0.02
763,000 South Africa Government 5.375% 24/07/2044
764,908
0.16
2,448,000 South Africa Government 5.500% 09/03/2020
2,604,671
0.55
Uruguay 0.71%
Government Bonds
140,000 South Africa Government 6.250% 08/03/2041
154,000
0.03
58,620,000 South Africa Government 6.500% 28/02/2041
2,762,471
0.58
2,397,000 Uruguay Government 4.375% 27/10/2027
2,450,932
0.51
32,630,000 South Africa Government 6.750% 31/03/2021
2,048,107
0.43
740,000 Uruguay Government 7.625% 21/03/2036
954,599
0.20
6,446,000 South Africa Government 8.250% 15/09/2017
439,560
0.09
3,405,531
0.71
46,727,000 South Africa Government 8.250% 31/03/2032
2,816,971
0.59
6,986,744
1.45
19,413,542
4.05
995,000 Petroleos de Venezuela SA 5.125% 28/10/2016
771,623
0.16
1,835,000 Petroleos de Venezuela SA 5.250% 12/04/2017
945,943
0.20
825,000 Petroleos de Venezuela SA 5.500% 12/04/2037
265,031
0.06
93,979,000 South Africa Government 10.500% 21/12/2026
Sri Lanka 1.05%
Government Bonds
Venezuela 1.55%
Corporate Bonds
1,576,000 Sri Lanka Government 6.125% 03/06/2025
1,449,911
0.30
1,950,000 Petroleos de Venezuela SA 6.000% 16/05/2024
612,788
0.13
3,715,000 Sri Lanka Government 6.850% 03/11/2025
3,571,044
0.75
1,520,000 Petroleos de Venezuela SA 6.000% 15/11/2026
474,620
0.10
5,020,955
1.05
300,000 Petroleos de Venezuela SA 9.000% 17/11/2021
112,500
0.02
395,000 Petroleos de Venezuela SA 9.750% 17/05/2035
345,000 Petroleos de Venezuela SA 12.750% 17/02/2022
148,797
158,873
0.03
0.03
2,760,000 Venezuela Government 6.000% 09/12/2020
938,400
0.20
585,000 Venezuela Government 7.000% 31/03/2038
198,900
0.04
1,615,000 Venezuela Government 9.000% 07/05/2023
573,325
0.12
Tanzania 0.06%
Government Bonds
306,756
302,222 Tanzania Government 6.892% 09/03/2020
Government Bonds
0.06
Thailand 1.94%
Government Bonds
29,941,000 Thailand Government 3.625% 16/06/2023
969,498
0.20
2,800,000 Venezuela Government 9.250% 15/09/2027
1,134,000
0.24
177,379,000 Thailand Government 3.850% 12/12/2025
6,013,748
1.26
425,000 Venezuela Government 11.750% 21/10/2026
168,938
0.04
74,877,000 Thailand Government 3.875% 13/06/2019
2,295,243
0.48
2,142,000 Venezuela Government 11.950% 05/08/2031
856,800
0.18
9,278,489
1.94
7,360,538
1.55
1,123,000 Vietnam Government 4.800% 19/11/2024
1,128,896
0.24
1,204,000 Vietnam Government 6.750% 29/01/2020
1,339,751
0.28
2,468,647
0.52
Total Fixed Income Securities
458,572,495
95.98
Total Transferable Securities
458,572,495
95.98
Total Value of Investments excluding Financial
Derivative Instruments
458,572,495
95.98
Maturity
Date
Unrealised
Gain/(Loss)
USD
% of
NAV
Vietnam 0.52%
Tunisia 0.10%
Government Bonds
Corporate Bonds
Banque Centrale de Tunisie SA 5.750%
562,000
30/01/2025
487,886
0.10
Turkey 5.26%
Government Bonds
1,306,000 Turkey Government 4.250% 14/04/2026
1,271,717
0.26
1,140,000 Turkey Government 4.875% 09/10/2026
1,154,250
0.24
1,328,000 Turkey Government 6.000% 14/01/2041
1,439,220
0.30
11,682,000 Turkey Government 6.300% 14/02/2018
3,910,319
0.82
2,034,000 Turkey Government 6.875% 17/03/2036
2,409,019
0.50
745,000 Turkey Government 7.000% 11/03/2019
824,529
0.17
1,812,000 Turkey Government 7.375% 05/02/2025
2,176,665
0.46
1,408,000 Turkey Government 7.500% 07/11/2019
1,609,520
0.34
31,934,000 Turkey Government 8.000% 12/03/2025
10,201,597
2.15
304,000 Turkey Government 9.000% 08/03/2017
107,102
0.02
25,103,938
5.26
Ukraine 1.17%
Government Bonds
Amount
Bought
Amount
Sold
Financial Derivative Instruments 0.92%
Open Forward Foreign Currency Exchange Contracts 0.92%
04/04/2016
BRL 1,614,939
USD 437,297
18,385
0.00
04/04/2016
BRL 1,614,939
USD 437,357
18,326
0.00
1,270,000 Ukraine Government 7.750% 01/09/2019
1,200,150
0.25
04/04/2016
BRL 1,614,940
USD 437,298
18,385
0.00
685,000 Ukraine Government 7.750% 01/09/2020
644,584
0.12
03/05/2016
BRL 2,381,728
USD 650,301
16,392
0.00
1,065,000 Ukraine Government 7.750% 01/09/2021
991,515
0.20
03/05/2016
BRL 5,236,272
USD 1,429,699
36,039
0.01
Lazard Global Investment Funds plc
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Emerging Markets Debt Unrestricted Blend Fund (continued)
Portfolio of Investments as at 31 March 2016
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
USD
% of
NAV
Financial Derivative Instruments 0.92% (continued)
Open Forward Foreign Currency Exchange Contracts 0.92% (continued)
Maturity
Date
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
USD
% of
NAV
Financial Derivative Instruments 0.92% (continued)
Open Forward Foreign Currency Exchange Contracts 0.92% (continued)
15/04/2016
CHF 2,047,533
USD 2,068,089
70,993
0.01
18/04/2016
USD 914,915
INR 61,683,552
(14,152)
(0.00)
15/04/2016
CHF 3,405
USD 3,440
118
0.00
17/06/2016
USD 133,000
PEN 452,599
(1,817)
(0.00)
15/04/2016
CHF 54,255
USD 56,030
651
0.00
17/06/2016
USD 150,702
PEN 507,867
(578)
(0.00)
18/04/2016
COP 1,001,000,000
USD 325,000
8,061
0.00
17/06/2016
USD 709,298
PEN 2,385,368
(1,240)
(0.00)
18/04/2016
COP 2,819,943,842
USD 882,929
55,346
0.01
18/04/2016
USD 740,000
RON 2,936,357
(8,833)
(0.00)
18/04/2016
COP 2,967,000,000
USD 920,000
67,205
0.01
18/04/2016
USD 1,224,558
RUB 86,759,167
(67,813)
(0.01)
15/04/2016
EUR 125,778,896
USD 139,185,920
4,193,544
0.88
18/04/2016
USD 285,000
RUB 19,608,000
(7,082)
(0.00)
05/04/2016
EUR 23,789
USD 27,027
82
0.00
18/04/2016
USD 615,442
RUB 43,585,635
(33,812)
(0.01)
15/04/2016
EUR 3,308,006
USD 3,725,112
45,791
0.01
18/04/2016
USD 374,060
THB 13,210,850
(1,336)
(0.00)
15/04/2016
EUR 9,912,996
USD 11,091,948
208,200
0.04
18/04/2016
ZAR 1,338,965
USD 87,000
3,785
0.00
18/04/2016
INR 64,280,898
USD 949,917
18,270
0.00
18/04/2016
ZAR 1,649,732
USD 106,200
5,656
0.00
18/04/2016
INR 64,280,898
USD 950,058
18,130
0.00
18/04/2016
ZAR 10,439,423
USD 672,604
35,215
0.01
18/04/2016
INR 64,280,898
USD 950,339
17,849
0.00
18/04/2016
INR 64,280,899
USD 949,847
18,340
0.00
18/04/2016
MXN 10,740,637
USD 597,583
28,270
0.01
5,177,366
1.06
18/04/2016
MXN 10,740,637
USD 598,238
27,615
0.01
(796,263)
(0.14)
18/04/2016
MXN 10,740,638
USD 597,891
27,961
0.01
04/04/2016
MXN 115,454
USD 6,664
73
0.00
4,381,103
0.92
18/04/2016
MXN 4,566,549
USD 260,000
6,091
0.00
18/04/2016
MXN 448,968
USD 24,999
1,162
0.00
4,381,103
0.92
18/04/2016
RON 1,046,585
USD 262,000
4,901
0.00
18/04/2016
RON 3,296,511
USD 815,524
25,156
0.01
Total Investments
462,953,598
96.90
18/04/2016
RON 3,296,511
USD 816,554
24,126
0.01
Other Net Assets
14,787,849
3.10
18/04/2016
RUB 36,770,192
USD 538,600
9,132
0.00
477,741,447
100.00
18/04/2016
THB 13,452,000
USD 380,000
2,248
0.00
18/04/2016
THB 60,523,600
USD 1,715,400
4,421
0.00
18/04/2016
THB 7,124,944
USD 202,000
460
0.00
18/04/2016
THB 78,090,350
USD 2,210,000
8,993
0.00
18/04/2016
TRY 1,438,400
USD 500,000
8,383
0.00
18/04/2016
TRY 1,881,388
USD 637,640
27,311
0.01
18/04/2016
TRY 1,881,388
USD 637,867
27,084
0.01
18/04/2016
TRY 1,881,388
USD 638,083
26,868
0.01
18/04/2016
TRY 825,716
USD 285,000
6,838
0.00
04/04/2016
USD 1,024,635
BRL 4,137,682
(142,882)
(0.03)
04/04/2016
USD 192,000
BRL 707,136
(7,530)
(0.00)
03/05/2016
USD 434,147
BRL 1,614,939
(17,907)
(0.00)
03/05/2016
USD 434,147
BRL 1,614,940
(17,907)
(0.00)
03/05/2016
USD 434,217
BRL 1,614,939
(17,837)
(0.00)
03/05/2016
USD 1,553,188
BRL 5,735,922
(52,412)
(0.01)
03/05/2016
USD 726,812
BRL 2,683,391
(24,323)
(0.01)
04/04/2016
USD 11,088,181
EUR 9,912,996
(208,179)
(0.04)
15/04/2016
USD 3,114,311
EUR 2,814,446
(93,968)
(0.02)
18/05/2016
USD 440,000
HUF 123,522,278
(7,627)
(0.00)
18/05/2016
USD 754,308
HUF 210,059,687
(6,919)
(0.00)
18/05/2016
USD 755,692
HUF 210,059,686
(5,535)
(0.00)
18/05/2016
USD 755,991
HUF 210,059,687
(5,236)
(0.00)
18/04/2016
USD 1,652,456
IDR 21,771,102,230
14,063
0.00
18/04/2016
USD 725,200
IDR 9,605,274,000
2,351
0.00
18/04/2016
USD 828,113
IDR 10,885,551,115
8,917
0.00
18/04/2016
USD 829,375
IDR 10,885,551,115
10,179
0.00
18/04/2016
USD 1,920,000
INR 129,849,600
(35,772)
(0.01)
18/04/2016
USD 273,354
INR 18,444,290
(4,450)
(0.00)
18/04/2016
USD 691,731
INR 46,664,179
(11,116)
(0.00)
Lazard Global Investment Funds plc
Unrealised gain on open forward foreign currency exchange
contracts
Unrealised loss on open forward foreign currency exchange
contracts
Net unrealised gain on open forward foreign currency
exchange contracts
Total Financial Derivative Instruments
Net Assets
Analysis of total assets (unaudited)
% of total assets
Transferable securities admitted to an official stock exchange listing
75.10
Transferable securities dealt in on another regulated market
19.20
Over the counter financial derivative instruments
1.06
Other assets
4.64
Total Assets
100.00
The counterparties for the open forward foreign currency exchange contracts are:
Barclays Bank Plc
Citibank NA
HSBC Bank Plc
JP Morgan Chase and Company
Standard Chartered Plc
State Street Bank and Trust Company
UBS AG
Fixed income securities are primarily classified by the country of incorporation of the
issuer for corporate fixed income securities and country of issuer for government type
fixed income securities.
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Maturity
Date
103
Portfolios of Investments (continued)
Lazard Opportunities Fund
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
GBP
% of
NAV
Transferable Securities 94.17% (2015: 98.04%)
Fixed Income Securities 92.82% (2015: 83.90%)
Principal
Amount
Fair Value
GBP
% of
NAV
3,075,000 United Kingdom Gilt 1.750% 22/01/2017*
3,108,518
17.97
3,300,000 United Kingdom Gilt 4.000% 07/09/2016*
United Kingdom Treasury Bill - Zero coupon
2,450,000
04/04/2016*
United Kingdom Treasury Bill - Zero coupon
1,436,000
18/07/2016*
United Kingdom Treasury Bill - Zero coupon
1,706,000
08/08/2016**
3,351,150
19.37
2,449,921
14.16
1,433,956
8.29
Transferable Securities 94.17% (2015: 98.04%) (continued)
Fixed Income Securities 92.82% (2015: 83.90%) (continued)
Bermuda Nil (2015: 0.61%)
Government Bonds
LAZARD GLOBAL INVESTMENT FUNDS PLC
Canada 2.45% (2015: 0.78%)
104
Convertible Bonds
313,000 Element Financial Corp 4.250% 30/06/2020
165,821
0.96
448,000 Element Financial Corp 5.125% 30/06/2019
Great Western Minerals Group Ltd 8.000%
130,000
06/04/2017
256,644
1.48
1,131
0.01
423,596
2.45
Denmark 0.37% (2015: Nil)
0.37
Convertible Bonds
10,000,000 Advantest Corp - Zero coupon 14/03/2019
63,140
0.36
10,000,000 Joyo Bank Ltd - Zero coupon 24/08/2018
63,063
0.36
130,279
0.75
64,597
0.37
86,199
0.50
101,326
0.59
154,446
0.89
30,912
0.18
30,525
0.18
66,096
0.38
15,000 Shizuoka Bank Ltd 4.875% 01/06/2020
0.07
1,957
0.01
64,223
0.37
105,253
0.61
7,094
0.04
108,000 James River Coal Co 10.000% 01/06/2018
1,428
0.01
52,000 NuVasive Inc 2.250% 15/03/2021
Powerwave Technologies Inc 2.750%
60,000
15/07/2041
Starwood Property Trust Inc 4.550%
87,000
01/03/2018
Corporate Bonds
American Axle & Manufacturing Inc 5.125%
374,000
15/02/2019
BlueLine Rental Finance Corp 7.000%
215,000
01/02/2019
600,000 JBS USA Finance Inc 5.875% 15/07/2024
PaperWorks Industries Inc 9.500%
485,000
15/08/2019
600,000 SandRidge Energy Inc 7.500% 15/03/2021
38,892
0.22
-
0.00
60,984
0.35
264,439
1.53
138,554
0.80
378,836
2.19
298,633
1.73
24,264
0.14
1,396,689
8.07
16,059,141
92.82
Fair Value
GBP
% of
NAV
-
0.00
18
0.00
83,758
0.48
13,000 Innoviva Inc 2.125% 15/01/2023
Japan 9.94% (2015: 6.29%)
9,823
0.06
75,768
0.44
60,000,000 Suzuki Motor Corp - Zero coupon 31/03/2021
389,807
2.26
40,000,000 Suzuki Motor Corp - Zero coupon 31/03/2023
Takashimaya Co Ltd - Zero coupon
10,000,000
11/12/2018
Takashimaya Co Ltd - Zero coupon
20,000,000
11/12/2020
260,577
1.51
62,908
0.36
130,305
0.75
1,719,771
9.94
12,000,000 Sony Corp - Zero coupon 30/09/2022
18,000 Alon USA Energy Inc 3.000% 15/09/2018
Alpha Natural Resources Inc 4.875%
375,000
15/12/2020
91,000 CB Dendreon Corp 5.000% 15/02/2021
248,000 FXCM Inc 2.250% 15/06/2018
Guernsey Nil (2015: 0.29%)
100,000 Shizuoka Bank Ltd - Zero coupon 25/04/2018
12,132
Convertible Bonds
64,769
France Nil (2015: 0.27%)
200,000 Joyo Bank Ltd - Zero coupon 24/04/2019
Keihan Holdings Co Ltd - Zero coupon
10,000,000
30/03/2021
Nagoya Railroad Co Ltd - Zero coupon
10,000,000
03/10/2023
Nippon Light Metal Holdings Co Ltd - Zero
15,000,000
coupon 10/12/2018
20,000,000 Park24 Co Ltd - Zero coupon 26/04/2018
Press Kogyo Co Ltd - Zero coupon
5,000,000
28/12/2018
5,000,000 Senshukai Co Ltd - Zero coupon 23/04/2019
9.84
71.18
United States 8.07% (2015: 17.54%)
Convertible Bonds
100,000 Rocket Internet SE 3.000% 22/07/2022
1,703,059
12,314,878
Total Fixed Income Securities
Number of
Shares
Transferable Securities 94.17% (2015: 98.04%) (continued)
Equities 1.35% (2015: 13.61%)
Australia Nil (2015: 0.60%)
Luxembourg Nil (2015: 0.81%)
Bermuda 0.00% (2015: 0.26%)
Mexico Nil (2015: 1.57%)
28,000 Energy XXI Ltd
Canada 0.00% (2015: 0.30%)
Singapore 0.12% (2015: 0.09%)
Convertible Bonds
200,000 Enercoal Resources Pte Ltd 6.000% 07/04/2018
1 Valeant Pharmaceuticals International Inc
20,872
0.12
Cayman Islands Nil (2015: 0.20%)
South Africa 0.69% (2015: 0.50%)
China Nil (2015: 0.04%)
Convertible Bonds
4,300,000 Aveng Ltd 7.250% 24/07/2019
118,566
0.69
France 0.48% (2015: Nil)
United Kingdom 71.18% (2015: 55.15%)
Convertible Bonds
200,000 J Sainsbury Plc 2.875% 29/12/2049
Chugoku Electric Power Co Inc - Zero coupon
75,000
19/09/2016
Lazard Global Investment Funds plc
3,172 Faurecia
193,450
1.12
74,824
0.43
Ireland Nil (2015: 0.66%)
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Opportunities Fund (continued)
Portfolio of Investments as at 31 March 2016
Number of
Shares
Fair Value
GBP
% of
NAV
Transferable Securities 94.17% (2015: 98.04%) (continued)
Equities 1.35% (2015: 13.61%) (continued)
Number of
Shares
Total Value of Investments excluding Financial
Derivative Instruments
Japan Nil (2015: 0.08%)
Fair Value
GBP
% of
NAV
16,293,450
94.17
Unrealised
Gain/(Loss)
GBP
% of
NAV
(11,193)
(0.06)
(11,193)
(0.06)
Financial Derivative Instruments 0.55% (2015: (7.76)%)
Notional
Amount
GBP
Netherlands Nil (2015: 0.37%)
Puerto Rico Nil (2015: 1.15%)
Average
Cost
Price
Financial Derivative Instruments (7.76)%
Open Futures Contracts (0.02)%
Spain Nil (2015: 0.11%)
(1,059,304)
1,412 (15) of S&P 500 eMini Index Futures
Short Futures Contracts
Sweden Nil (2015: 0.33%)
Expiring 17/06/2016
United Kingdom Nil (2015: 0.29%)
Unrealised loss on open futures contracts
United States 0.87% (2015: 9.18%)
1,622 American Homes 4 Rent
448 AmTrust Financial Services Inc
667 ANI Pharmaceuticals Inc
2,902 Exelixis Inc
17,938
0.10
8,070
0.05
15,618
0.09
8,066
0.05
Maturity
Date
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
GBP
% of
NAV
Open Forward Foreign Currency Exchange Contracts (0.31)% (2015: (0.69)%)
1,362
0.01
29/04/2016
EUR 12,312
GBP 9,759
9
0.00
16,683
0.10
29/04/2016
EUR 12,861
GBP 10,194
10
0.00
676 Iconix Brand Group Inc
3,781
0.02
29/04/2016
EUR 904,140
GBP 716,641
675
0.00
602 Merrimack Pharmaceuticals Inc
3,504
0.02
29/04/2016
EUR 989,192
GBP 784,055
739
0.00
860 PDL BioPharma Inc
1,995
0.01
15/06/2016
GBP 256,312
CAD 488,000
(6,141)
(0.04)
182 FXCM Inc
868 Greenbrier Cos Inc
22,827
0.13
15/06/2016
GBP 1,510,050
JPY 245,300,000
(11,197)
(0.06)
13,952 Solazyme Inc
19,560
0.11
01/04/2016
GBP 127,178
JPY 20,770,000
(1,392)
(0.01)
69,622 SunEdison Inc
26,175
0.16
01/04/2016
GBP 191,043
JPY 31,200,000
(2,092)
(0.01)
3,948
0.02
01/04/2016
GBP 66,292
JPY 10,612,500
598
0.00
811
0.00
15/06/2016
GBP 239,876
EUR 308,544
(5,233)
(0.03)
150,338
0.87
15/06/2016
GBP 11,087
SEK 132,000
(268)
(0.00)
29/04/2016
GBP 3,455
USD 4,875
63
0.00
15/06/2016
GBP 4,103,174
USD 5,800,000
68,732
0.41
15/06/2016
GBP 113,290
ZAR 2,570,000
(6,531)
(0.04)
01/04/2016
JPY 113,300,000
GBP 707,135
(5,784)
(0.03)
01/04/2016
JPY 51,250,000
GBP 319,865
(2,616)
(0.02)
29/04/2016
USD 1,508,966
GBP 1,069,298
(19,515)
(0.12)
15/06/2016
USD 4,679,650
GBP 3,263,354
(8,220)
(0.05)
29/04/2016
USD 4,818,188
GBP 3,406,433
(54,436)
(0.31)
70,826
0.41
(123,425)
(0.72)
(52,599)
(0.31)
1,335 SolarCity Corp
310 Trinity Industries Inc
2,232 Violin Memory Inc
Total Equities
234,114
1.35
Bermuda 0.00% (2015: Nil)
-
28,000 Gulf Keystone Petroleum Ltd
0.00
Cayman Islands Nil (2015: 0.53%)
United States 0.00% (2015: Nil)
195
0.00
195
0.00
16,293,450
94.17
16,910 Gevo Inc
Total Warrants
Total Transferable Securities
Lazard Global Investment Funds plc
Unrealised gain on open forward foreign currency exchange
contracts
Unrealised loss on open forward foreign currency exchange
contracts
Net unrealised loss on open forward foreign currency
exchange contracts
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Open Futures Contracts (0.06)% (2015: (0.02)%)
Marshall Islands Nil (2015: 0.04%)
105
Portfolios of Investments (continued)
Lazard Opportunities Fund (continued)
Portfolio of Investments as at 31 March 2016
Notional
Amount
GBP
Fair Value
GBP
% of
NAV
LAZARD GLOBAL INVESTMENT FUNDS PLC
Financial Derivative Instruments 0.55% (continued)
Options Purchased 0.04% (2015: 0.24%)
106
The counterparty for the options is Deutsche Bank AG.
800 Bunge Ltd - Call at 58 Expiring July 2016
iShares MSCI Emerging Markets UCITS ETF 1,900
Call at 32 Expiring April 2016
Jakks Pacific Inc - Put at 5 Expiring June
5,100
2016
400 LGI Homes Inc - Put at 20 Expiring May 2016
1,586
0.01
3,054
0.02
532
0.00
195
0.00
125
0.00
125
0.00
1,566
0.01
7,183
0.04
(177)
(0.00)
(271)
(0.00)
(40)
(0.00)
(177)
(0.00)
(417)
(0.00)
(35)
(0.00)
(565)
(0.01)
(1,682)
(0.01)
Fair Value
GBP
% of
NAV
153,496
0.89
200 Netsuite Inc - Call at 70 Expiring April 2016
SPDR S&P 500 ETF Trust - Put at 180
4,500
Expiring April 2016
SPDR S&P 500 ETF Trust - Put at 200
4,500
Expiring April 2016
Options purchased at fair value
Options Written*** (0.01)% (2015: (0.20)%)
(300) Bunge Ltd - Put at 48 Expiring July 2016
(300) Bunge Ltd - Put at 50 Expiring July 2016
iShares MSCI Emerging Markets UCITS ETF (1,900)
Put at 30.5 Expiring April 2016
Jakks Pacific Inc - Call at 10 Expiring June
(5,100)
2016
(400) LGI Homes Inc - Call at 25 Expiring May 2016
(200) Netsuite Inc - Put at 55 Expiring April 2016
SPDR S&P 500 ETF Trust - Put at 190
(9,000)
Expiring April 2016
Options written at fair value
CCY
The counterparty for the open forward foreign currency exchange contracts is State
Street Bank and Trust Company.
Notional
Amount
GBP
The counterparty for the open futures contracts and the total return swap is Deutsche
Bank AG.
* A portion of these securities is pledged as collateral in connection with the collateral
requirements for the total return swap held by the Fund. The amount of collateral that is
pledged is GBP 5,922,696.
** All of this security is pledged as collateral in connection with the collateral
requirements for the total return swap held by the Fund. The amount of collateral that is
pledged is GBP 1,703,059.
*** These written options are covered.
Equities are primarily classified by the country of incorporation of the entity in which
the Fund holds shares. Fixed income securities are primarily classified by the country of
incorporation of the issuer for corporate fixed income securities and country of issuer for
government type fixed income securities.
Equity Basket Total Return Swap 0.89% (2015: (7.09)%)
USD
1
Total Return Swap at positive fair value
153,496
0.89
Total Return Swap at fair value
153,496
0.89
95,205
0.55
16,388,655
94.72
Total Financial Derivative Instruments
Total Investments (2015: 90.28%)
Other Net Assets (2015: 9.72%)
Net Assets
912,893
5.28
17,301,548
100.00
Analysis of total assets (unaudited)
% of total assets
Transferable securities admitted to an official stock exchange listing
12.87
Transferable securities dealt in on another regulated market
60.83
Over the counter financial derivative instruments
1.05
Other assets
25.25
Total Assets
100.00
Lazard Global Investment Funds plc
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Global Hexagon Equity Fund
Principal
Amount
Fair Value
USD
% of
NAV
Number of
Shares
Transferable Securities 88.82% (2015: 103.96%)
Fixed Income Securities 48.71% (2015: 35.57%)
Transferable Securities 88.82% (2015: 103.96%) (continued)
Equities 40.11% (2015: 68.39%) (continued)
United States 48.71% (2015: 35.57%)
Ireland 1.59% (2015: Nil)
3,104,000
3,507,000
3,004,000
3,002,000
3,503,000
4,936,000
3,510,000
4,412,000
3,031,000
Government Bonds
United States Treasury Bill - Zero coupon
28/04/2016*
United States Treasury Bill - Zero coupon
26/05/2016*
United States Treasury Bill - Zero coupon
23/06/2016*
United States Treasury Bill - Zero coupon
21/07/2016*
United States Treasury Bill - Zero coupon
18/08/2016*
United States Treasury Bill - Zero coupon
15/09/2016
United States Treasury Bill - Zero coupon
13/10/2016
United States Treasury Bill - Zero coupon
10/11/2016*
United States Treasury Bill - Zero coupon
08/12/2016
Total Fixed Income Securities
16,700 Eaton Corp Plc
3,103,615
4.73
3,506,334
5.34
3,002,600
4.57
2,999,592
4.57
3,498,541
4,928,617
5.33
7.51
Fair Value
USD
% of
NAV
1,044,502
1.59
1,459,504
2.22
1,008,131
1.54
754,614
1.15
1,063,705
1.62
2,826,450
4.31
Israel 2.22% (2015: 3.13%)
27,283 Teva Pharmaceutical Industries Ltd - ADR
Italy 4.31% (2015: 3.17%)
43,720 Azimut Holding SpA
75,336 Davide Campari-Milano SpA
169,794 Snam SpA
3,504,802
5.34
Japan Nil (2015: 8.65%)
4,404,494
6.71
Netherlands 6.07% (2015: 2.82%)
3,023,907
4.61
21,575 ABN AMRO Group NV
442,606
0.67
31,972,502
48.71
14,133 Flow Traders
654,760
1.00
74,504 ING Groep NV
902,711
1.37
40,624 NN Group NV
1,331,273
2.03
653,678
1.00
3,985,028
6.07
604,503
0.92
986,551
1.50
676,082
1.03
7,563 Edgewell Personal Care Co
646,483
0.98
6,876 Molson Coors Brewing Co
585,457
0.89
9,068 Rockwell Automation Inc
1,031,258
1.57
5,803 United Therapeutics Corp
661,265
1.01
1,238,529
1.89
609,162
0.93
4,772,154
7.27
Total Equities
26,340,355
40.11
Total Transferable Securities
58,312,857
88.82
31,972,502
Number of
Shares
Fair Value
USD
48.71
% of
NAV
Transferable Securities 88.82% (2015: 103.96%) (continued)
Equities 40.11% (2015: 68.39%)
202,797 Ainsworth Game Technology Ltd
364,264
0.55
691,398 Spotless Group Holdings Ltd
667,481
1.02
1,031,745
1.57
2,331,221
3.55
Belgium 4.49% (2015: Nil)
11,971 KBC Groep NV
618,474
0.94
2,949,695
4.49
703,814
1.07
Bermuda 1.07% (2015: Nil)
5,675 Signet Jewelers Ltd
Canada Nil (2015: 3.62%)
China Nil (2015: 2.59%)
South Africa 1.50% (2015: 5.12%)
680,112 Nampak Ltd
Switzerland 1.03% (2015: 3.63%)
4,504 Actelion Ltd
Thailand Nil (2015: 1.88%)
Turkey Nil (2015: 2.67%)
7,361 Vertex Pharmaceuticals Inc
27,942 Zoetis Inc
Denmark 3.63% (2015: Nil)
2,383,964
3.63
Finland 0.48% (2015: 1.09%)
6,647 Sampo Oyj
128,700 Europris ASA
United States 7.27% (2015: 15.45%)
Brazil Nil (2015: 3.48%)
25,008 Carlsberg A/S
Norway 0.92% (2015: Nil)
Philippines Nil (2015: 2.65%)
Australia 1.57% (2015: 4.93%)
18,721 Anheuser-Busch InBev SA
16,345 Wolters Kluwer NV
315,860
0.48
Germany 3.96% (2015: 3.16%)
63,101 E.ON SE
21,176 LEG Immobilien AG
606,066
0.92
1,994,437
3.04
2,600,503
3.96
Greece Nil (2015: 0.35%)
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Portfolio of Investments as at 31 March 2016
107
Portfolios of Investments (continued)
Lazard Global Hexagon Equity Fund (continued)
Portfolio of Investments as at 31 March 2016
Number of
Shares
Fair Value
USD
% of
NAV
United States 0.96% (2015: Nil)
629,797
LAZARD GLOBAL INVESTMENT FUNDS PLC
23,933 iShares MSCI Brazil Capped ETF
108
Total Investment Funds
629,797
Total Investments excluding Financial Derivative
Instruments
Amount
Bought
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
USD
% of
NAV
Financial Derivative Instruments (2.59)% (2015: (2.26)%) (continued)
Open Forward Foreign Currency Exchange Contracts 0.52% (2015: 0.16%) (continued)
Investment Funds 0.96% (2015: Nil)
Maturity
Date
Maturity
Date
Amount
Sold
58,942,654
Unrealised
Gain/(Loss)
USD
0.96
0.96
89.78
% of
NAV
Financial Derivative Instruments (2.59)% (2015: (2.26)%)
Open Forward Foreign Currency Exchange Contracts 0.52% (2015: 0.16%)
18/05/2016
USD 1,235,577
DKK 8,160,407
05/04/2016
USD 297
EUR 263
(14,200)
(0.02)
(3)
18/05/2016
USD 131,352
(0.00)
EUR 119,561
(5,071)
18/05/2016
(0.01)
USD 402,635
EUR 354,572
(1,946)
(0.00)
18/05/2016
USD 1,050,920
EUR 955,965
(39,874)
(0.06)
18/05/2016
USD 1,661,572
EUR 1,494,730
(43,974)
(0.07)
18/05/2016
USD 2,763,753
EUR 2,539,829
(134,292)
(0.20)
18/05/2016
USD 2,964,800
EUR 2,648,507
(57,252)
(0.09)
18/05/2016
USD 10,380,592
EUR 9,186,934
(102,064)
(0.15)
18/05/2016
USD 4,504
GBP 3,210
(111)
(0.00)
18/05/2016
USD 364,286
GBP 252,572
1,219
0.00
18/05/2016
USD 463,899
GBP 323,006
(416)
(0.00)
18/05/2016
USD 1,461,652
JPY 165,815,628
(15,471)
(0.02)
18/05/2016
USD 342,674
NOK 2,927,138
(11,143)
(0.02)
18/05/2016
USD 583,948
NOK 4,993,560
(19,647)
(0.03)
18/05/2016
USD 15,574
SGD 21,880
(672)
(0.00)
18/05/2016
USD 1,066,901
SGD 1,487,975
(37,905)
(0.06)
18/05/2016
USD 63,472
ZAR 1,008,538
(4,505)
(0.01)
18/05/2016
USD 189,573
ZAR 2,946,181
(9,004)
(0.01)
18/05/2016
USD 580,309
ZAR 9,357,207
(50,381)
(0.08)
18/05/2016
ZAR 1,606,892
USD 103,362
4,945
0.01
18/05/2016
AUD 109,897
USD 77,829
6,538
0.01
18/05/2016
AUD 146,419
USD 104,351
8,055
0.01
03/05/2016
BRL 1,087,671
USD 300,877
3,584
0.01
03/05/2016
BRL 2,456,389
USD 668,951
18,641
0.03
03/05/2016
BRL 2,948,012
USD 810,116
15,092
0.02
18/05/2016
CHF 129,857
USD 134,098
1,763
0.00
18/05/2016
CHF 304,143
USD 307,266
10,938
0.02
18/05/2016
CHF 770,925
USD 779,917
26,650
0.04
18/05/2016
CHF 808,867
USD 830,885
15,378
0.02
18/05/2016
DKK 1,070,474
USD 159,932
4,013
0.01
18/05/2016
DKK 424,038
USD 64,233
709
0.00
18/05/2016
EUR 1,261,593
USD 1,426,088
13,439
0.02
18/05/2016
EUR 1,467,832
USD 1,658,004
16,850
0.03
18/05/2016
EUR 1,631,046
USD 1,849,817
11,272
0.02
05/04/2016
EUR 291,843
USD 325,799
6,781
0.01
29/04/2016
EUR 48,573,086
USD 54,330,454
1,062,059
1.61
18/05/2016
EUR 488,944
USD 547,008
10,896
0.02
18/05/2016
EUR 581,864
USD 657,603
6,327
0.01
29/04/2016
EUR 605,505
USD 677,269
13,246
0.02
18/05/2016
EUR 669,977
USD 744,669
19,801
0.03
18/05/2016
EUR 733,572
USD 817,964
19,070
0.03
(11,276) Airbus Group SE
11,684
0.02
18/05/2016
EUR 846,996
USD 935,819
30,637
0.05
(9,665) AO Smith Corp
(77,450)
(0.12)
18/05/2016
GBP 376,246
USD 548,563
(7,716)
(0.01)
(21,180) Assicurazioni Generali SpA
3,211
0.00
18/05/2016
GBP 725,671
USD 1,053,892
(10,754)
(0.02)
(13,320) B&G Foods Inc
6,763
0.01
18/05/2016
JPY 157,955,026
USD 1,412,001
(4,902)
(0.01)
1,847,258 Bank of Ireland
(184,697)
(0.28)
18/05/2016
JPY 7,860,602
USD 68,551
1,473
0.00
(73,417) Barratt Developments Plc
18/05/2016
NOK 1,156,537
USD 134,134
5,662
0.01
(16,969) Baxter International Inc
18/05/2016
NOK 1,612,220
USD 187,686
7,191
0.01
(7,378) Bayerische Motoren Werke AG
18/05/2016
NOK 158,381
USD 18,538
606
0.00
(3,475) Boeing Co
18/05/2016
SGD 209,165
USD 148,775
6,528
0.01
(8,634) CH Robinson Worldwide Inc
18/05/2016
SGD 636,878
USD 470,440
2,435
0.00
18/05/2016
SGD 663,812
USD 484,645
8,228
0.01
18/05/2016
USD 105,499
AUD 146,411
(6,901)
(0.01)
18/05/2016
USD 964,357
AUD 1,362,042
(81,279)
(0.12)
(5,668) Cullen Frost Bankers Inc
03/05/2016
USD 2,194,798
BRL 8,879,056
(290,628)
(0.43)
(27,403) Deutsche Lufthansa AG
18/05/2016
USD 82,999
CHF 82,619
(3,440)
(0.01)
(14,972) easyJet Plc
18/05/2016
USD 1,088,390
CHF 1,054,194
(14,542)
(0.02)
62,979 Elior Group
79,334
0.12
18/05/2016
USD 1,560,723
CHF 1,513,854
(23,121)
(0.04)
(14,549) Getinge AB
(2,855)
(0.00)
18/05/2016
USD 339,461
DKK 2,326,129
(16,789)
(0.03)
(6,234) Hannover Rueck SE
(74,562)
(0.11)
18/05/2016
USD 599,268
DKK 3,994,838
(12,547)
(0.02)
(11,260) Harley-Davidson Inc
(135,154)
(0.21)
(4,135)
(0.01)
Unrealised gain on open forward foreign currency exchange
contracts
Unrealised loss on open forward foreign currency exchange
contracts
Net unrealised gain on open forward foreign currency
exchange contracts
1,360,026
2.07
(1,020,550)
(1.55)
339,476
0.52
Nominal
Amount
Unrealised
Gain/(Loss)
USD
% of
NAV
Security
Contracts for Difference (3.17)% (2015: (2.42)%)
0.06
(0.13)
(44,992)
(0.07)
(717)
(0.00)
(28,624)
(0.04)
(90,891)
(0.14)
(4,310) Coloplast
(5,051)
(0.01)
46,446 CRH Plc
(17,566)
(0.03)
(6,347)
(0.01)
(123,568) Challenger Ltd
(13,768) ICA Gruppen AB
Lazard Global Investment Funds plc
38,053
(87,485)
5,181
0.01
(8,665)
(0.01)
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard Global Hexagon Equity Fund (continued)
Portfolio of Investments as at 31 March 2016
Security
Unrealised
Gain/(Loss)
USD
% of
NAV
Financial Derivative Instruments (2.59)% (2015: (2.26)%) (continued)
Contracts for Difference (3.17)% (2015: (2.42)%) (continued)
(6,400) IDEXX Laboratories Inc
(120,493) ITV Plc
The counterparty for the open forward foreign currency exchange contracts is State
Street Bank and Trust Company.
The counterparty for the contracts for difference is JP Morgan Chase and Company.
(20,389)
(0.03)
21,153
0.03
The counterparty for the options is JP Morgan Chase and Company.
(2,214) Komercni Banka AS
(46,905)
(0.07)
(7,854) Lululemon athletica Inc
(91,851)
(0.14)
(15,394) National Oilwell Varco Inc
(13,713)
(0.02)
(19,044) Patterson UTI Energy Inc
(9,850)
(0.02)
268,263 Premier Oil Plc
(313,509)
(0.48)
Abbreviations used
59,541 Prudential Plc
(138,612)
(0.21)
ADR - American Depositary Receipt
(1,215) Regeneron Pharmaceuticals Inc
(1,366) S&P 500 (SPTR)
21,118
0.03
(347,083)
(0.52)
(3,362)
(0.01)
(250,047)
(0.38)
(37,005)
(0.06)
(27,664)
(0.04)
(15,528) Sanofi
37,058 Shire Plc
5,213 Signet Jewelers Ltd
172,026 Societe Television Francaise 1
89,339 Spire Healthcare Group Plc
(240,588) Taylor Wimpey Plc
115,877 Telefonica SA
(20,851) TGS Nopec Geophysical Co ASA
(11,774) Torchmark Corp
(3,932) Under Armour Inc
(22,760) Unum Group
(4,139) Varian Medical Systems Inc
38,131
0.06
(29,500)
(0.04)
(37,735)
(0.06)
5,238
0.01
(28,585)
(0.04)
(22,310)
(0.03)
(82,698)
(0.13)
29,119
0.04
(9,535) Vestas Wind Systems A/S
(49,423)
(0.08)
(9,200) Wal-Mart Stores Inc
(19,137)
(0.03)
Unrealised gain on contracts for difference
258,985
0.39
Unrealised loss on contracts for difference
(2,338,569)
(3.56)
Net unrealised loss on contracts for difference
(2,079,584)
(3.17)
Fair Value
USD
% of
NAV
41,434
0.06
41,434
0.06
Total Financial Derivative Instruments
(1,698,674)
(2.59)
Total Investments (2015: 101.70%)
57,243,980
87.19
8,416,455
12.81
65,660,435
100.00
Notional
Amount
USD
Security
* A portion of these securities is pledged as collateral in connection with the collateral
requirements for the option and the contracts for difference held by the Fund. The
amount of collateral that is pledged is USD 8,543,542.
Equities are primarily classified by the country of incorporation of the entity in which
the Fund holds shares. Fixed income securities are primarily classified by the country of
incorporation of the issuer for corporate fixed income securities and country of issuer for
government type fixed income securities.
Option Purchased 0.06% (2015: Nil)
2,020
SPDR S&P 500 ETF Trust - Put at 2,900
Expiring April 2016
Options purchased at fair value
Other Assets (2015: (1.70)%)
Net Assets
Analysis of total assets (unaudited)
% of total assets
Transferable securities admitted to an official stock exchange listing
36.60
Transferable securities dealt in on another regulated market
44.42
Investment Funds
Over the counter financial derivative instruments
0.88
2.31
Other assets
15.79
Total Assets
100.00
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Nominal
Amount
109
Portfolios of Investments (continued)
Lazard European Alternative Fund
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
EUR
% of
NAV
Notional
Amount
EUR
Average
Cost
Price
Transferable Securities 84.20%
Fixed Income Securities 60.70%
Financial Derivative Instruments 0.03%
Open Futures Contracts (0.02)%
Germany 60.70%
(11,645,890)
4,445 (262) of Cac40 10 Euro Index Futures
LAZARD GLOBAL INVESTMENT FUNDS PLC
Government Bonds
110
26,213,906
9.13
24,835,000 Bundesrepublik Deutschland 4.000 04/07/2016*
25,114,394
8.74
30,655,000 Bundesrepublik Deutschland 6.000 20/06/2016*
31,076,506
10.82
37,907,000 German Treasury Bill - Zero coupon 27/04/2016*
37,921,783
13.20
26,600,000 German Treasury Bill - Zero coupon 18/05/2016*
26,620,881
9.27
27,345,000 German Treasury Bill - Zero coupon 27/07/2016*
27,392,444
9.54
174,339,914
60.70
174,339,914
60.70
Number of
Shares
Fair Value
EUR
% of
NAV
5,602,104
61,075 Delhaize Group
1.95
Bermuda 0.99%
2,833,451
26,035 Signet Jewelers Ltd
0.99
Denmark 3.53%
69,420 Carlsberg A/S
5,807,266
2.03
37,509 Pandora A/S
4,319,641
1.50
10,126,907
3.53
Germany 7.04%
276,082 Deutsche Telekom AG
4,353,122
1.52
135,610 GEA Group AG
5,821,737
2.02
2,891,402
1.01
63,761 OSRAM Licht AG
100,549 SAP SE
9,929 (29) of Dax Index Futures
(51,412)
(0.02)
179,430
0.06
Short Futures Contracts
Expiring 17/06/2016
(11,581,020)
2,977 (389) of Euro Stoxx 50 Index Futures
Short Futures Contracts
Expiring 17/06/2016
Unrealised gain on open future contracts
340,550
0.12
Unrealised loss on open future contracts
(51,412)
(0.02)
Net unrealised gain on open futures contracts
289,138
0.10
Amount
Bought
Amount
Sold
Unrealised
Gain/(Loss)
EUR
% of
NAV
15/04/2016
USD 3,353
EUR 3,030
(89)
(0.00)
15/04/2016
USD 17,500
EUR 15,742
(390)
(0.00)
15/04/2016
USD 23,402
EUR 21,149
(619)
(0.00)
15/04/2016
USD 24,000
EUR 21,467
(413)
(0.00)
15/04/2016
USD 121,955
EUR 110,212
(3,228)
(0.00)
15/04/2016
USD 211,875
EUR 191,467
(5,600)
(0.00)
15/04/2016
USD 391,432
EUR 353,743
(10,361)
(0.00)
15/04/2016
USD 979,187
EUR 884,867
(25,881)
(0.01)
15/04/2016
USD 5,102,832
EUR 4,611,304
(134,871)
(0.05)
15/04/2016
USD 16,378,291
EUR 14,800,659
(432,889)
(0.15)
(614,341)
(0.21)
(614,341)
(0.21)
Unrealised
Gain/(Loss)
EUR
% of
NAV
(190,220)
(0.07)
Unrealised loss on open forward foreign currency exchange
contracts
Net unrealised loss on open forward foreign currency
exchange contracts
7,151,045
2.49
20,217,306
7.04
1,336,950
0.47
4,383,388
1.52
5,720,338
1.99
45,705 Flow Traders
1,858,137
0.65
85,485 Gemalto NV
5,554,388
1.94
912,952 Aberdeen Asset Management Plc
525,206 ING Groep NV
5,584,253
1.94
5,651,654
1.96
18,648,432
6.49
Italy 1.99%
90,000 Moncler SpA
797,342 Snam SpA
Netherlands 6.49%
196,528 NN Group NV
Nominal
Amount
Security
Contracts for Difference 0.14%
(173,775) ABB Ltd
57,525
0.02
(43,280) Acciona SA
(86,438)
(0.03)
(39,668) Accor SA
(37,123)
(0.01)
78,868 Adecco SA
202,678
0.08
(327,570)
(0.11)
(49,128) Airbus Group SE
72,996
0.03
(465,872) BAE Systems Plc
4,077
0.00
(25,783) Aena SA
Sweden 1.51%
4,367,424
145,026 Saab AB
Total Investments excluding Financial Derivative
Instruments
0.06
Open Forward Foreign Currency Exchange Contracts (0.21)%
Belgium 1.95%
Total Transferable Securities
161,120
Expiring 15/04/2016
(7,198,588)
Maturity
Date
Transferable Securities 84.20% (continued)
Equities 23.50%
Total Equities
% of
NAV
Short Futures Contracts
25,390,000 Bundesrepublik Deutschland 3.750 04/01/2017
Total Fixed Income Securities
Unrealised
Gain/(Loss)
EUR
67,515,962
241,855,876
241,855,876
1.51
23.50
84.20
84.20
(26,445) Baloise Holding AG
32,826
0.01
(44,774) BASF SE
(61,135)
(0.02)
(67,609) BNP Paribas SA
237,592
0.08
115,921 British American Tobacco Plc
260,931
0.09
(312,623)
(0.10)
802,040 BT Group Plc
54,872 Cap Gemini SA
118,297 Cie de Saint-Gobain
Lazard Global Investment Funds plc
143,711
0.05
(16,411)
(0.01)
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard European Alternative Fund (continued)
Portfolio of Investments as at 31 March 2016
Security
Unrealised
Gain/(Loss)
EUR
% of
NAV
Financial Derivative Instruments 0.03% (continued)
Contracts for Difference 0.14% (continued)
The counterparty for the open futures contracts is Merrill Lynch International.
95,996
0.03
(121,424) Deutsche Post AG
49,847 Cie Generale des Etablissements Michelin
(53,989)
(0.02)
(153,848) easyJet Plc
(18,228)
(0.01)
88,350 Eiffage SA
224,443
0.08
152,628 Elior Group
163,564
0.06
16,006
0.01
(80,743) Ferrari NV
311,388 Ferrovial SA
264,175
0.09
(333,611)
(0.12)
(29,191) Hannover Rueck SE
(187,582)
(0.07)
283,243 Indra Sistemas SA
209,277
0.07
(122,514)
(0.04)
(435,637) Fiat Chrysler Automobiles NV
(191,442) Inmarsat Plc
214,502 International Consolidated Airlines Group SA
(1,460,959) ITV Plc
(64,251) KBC Groep NV
(68,734) Kone Oyj
3,414,618 Lloyds Banking Group Plc
99,360
0.03
24,214
0.01
39,760
0.01
9,371
0.00
(78,308)
(0.03)
(568,883) Nokia Oyj
43,060
0.01
(127,682) Nordex SE
142,281
0.05
(65,856)
(0.02)
91,402 Novartis AG
(102,638) Orion Oyj
195,717 Peugeot SA
108,691 Schneider Electric SE
44,052
0.02
114,997
0.04
34,788
0.01
(193,079)
(0.07)
(27,134) Smurfit Kappa Group Plc
122,897
0.04
130,905 Societe Television Francaise 1
140,291
0.05
(313,906)
(0.11)
(104,031) Smurfit Kappa Group Plc
(91,821) Technip SA
304,193 Telefonica SA
(76,326)
(0.03)
(71,415) Victrex Plc
(63,208)
(0.02)
2,123,039 Vodafone Group Plc
24,283
0.01
(111,544) Wartsila Oyj Abp
(129,198)
(0.04)
325,613 Weir Group Plc
256,721
0.09
Unrealised gain on contracts for difference
3,081,872
1.07
Unrealised loss on contracts for difference
(2,667,325)
(0.93)
414,547
0.14
89,344
0.03
Net unrealised gain on contracts for difference
Total Financial Derivative Instruments
Total Investments
241,945,220
84.23
Other Net Assets
45,287,095
15.77
287,232,315
100.00
Net Assets
The counterparty for the contracts for difference is Bank of America/Merrill Lynch
International.
Analysis of total assets (unaudited)
53.25
Transferable securities dealt in on another regulated market
27.52
Equities are primarily classified by the country of incorporation of the entity in which
the Fund holds shares. Fixed income securities are primarily classified by the country of
incorporation of the issuer for corporate fixed income securities and country of issuer for
government type fixed income securities.
1.14
Other assets
18.09
Total Assets
100.00
Lazard Global Investment Funds plc
* A portion of these securities is pledged as collateral in connection with the collateral
requirements for the contacts for difference held by the Fund. The amount of
collateral that is pledged is EUR 31,031,629.
% of total assets
Transferable securities admitted to an official stock exchange listing
Over the counter financial derivative instruments
The counterparty for the open forward foreign currency exchange contracts is State
Street Bank and Trust Company.
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Nominal
Amount
111
Portfolios of Investments (continued)
Lazard US Fundamental Alternative Fund
Portfolio of Investments as at 31 March 2016
Principal
Amount
Fair Value
USD
% of
NAV
Transferable Securities 76.21%
Fixed Income Securities 76.21%
LAZARD GLOBAL INVESTMENT FUNDS PLC
1,300,000
1,300,000
904,000
1,500,000
1,500,000
1,000,000
1,003,000
953,000
(2,573) Bed Bath & Beyond Inc
Government Bonds
United States Treasury Bill - Zero coupon
28/04/2016*
United States Treasury Bill - Zero coupon
26/05/2016*
United States Treasury Bill - Zero coupon
23/06/2016*
United States Treasury Bill - Zero coupon
21/07/2016*
United States Treasury Bill - Zero coupon
18/08/2016
United States Treasury Bill - Zero coupon
15/09/2016
United States Treasury Bill - Zero coupon
13/10/2016
United States Treasury Bill - Zero coupon
10/11/2016
United States Treasury Bill - Zero coupon
08/12/2016
Total Fixed Income Securities
Total Transferable Securities
Amount
Bought
12.82
1,299,753
8.72
1,299,394
8.72
903,275
6.06
Amount
Sold
15/04/2016
EUR 5,494,035
USD 6,079,655
15/04/2016
USD 142,179
EUR 128,489
(8,390)
(0.06)
(0.27)
(7,118) BofI Holding Inc
(19,611)
(0.13)
(1,041)
(0.01)
(2,254) BOK Financial Corp
(4,645) Brinker International Inc
9,978
0.07
5,479 Bristol-Myers Squibb Co
(3,601)
(0.02)
(3,153) Canadian National Railway Co
(25,298)
(0.17)
(3,299) Capital One Financial Corp
(5,291)
(0.04)
(2,924)
(0.02)
(16,371)
(0.11)
(3,315)
(0.02)
(6,878) CNO Financial Group Inc
(10,336)
(0.07)
(3,766) Cognex Corp
(18,871)
(0.13)
4,497 CVS Health Corp
33,838
0.23
3,397 Deckers Outdoor Corp
33,844
0.23
10.04
1,497,756
10.05
10,556 Charles Schwab Corp
998,519
6.70
1,001,294
6.72
6.38
11,361,614
76.21
11,361,614
76.21
11,361,614
Unrealised
Gain/(Loss)
USD
76.21
76.21
% of
NAV
(2,160) CH Robinson Worldwide Inc
(3,050) Demandware Inc
7,927
0.05
(3,557)
(0.02)
(7,016) Discovery Communications Inc
(13,091)
(0.09)
(2,747) Dover Corp
(10,253)
(0.07)
2,665 Eaton Corp Plc
(1,620)
(0.01)
(5,163) Eaton Vance Corp
(16,143)
(0.11)
6,346
0.04
(2,214) Express Scripts Holding Co
6,752
0.04
2,134 Extra Space Storage Inc
24,449
0.16
2,538 Facebook Inc
18,594
0.12
(1,967) DexCom Inc
(18,845) Exact Sciences Corp
(1,195) Goldman Sachs Group Inc
(3,471) Harley-Davidson Inc
11,797 Hartford Financial Services Group Inc
5,163 Honeywell International Inc
183,174
1.23
(4,290)
(0.03)
(2,217) IDEXX Laboratories Inc
(1,268) Illumina Inc
1,851 Intercontinental Exchange Inc
Unrealised gain on open forward foreign currency exchange
contracts
Unrealised loss on open forward foreign currency exchange
contracts
Net unrealised gain on open forward foreign currency
exchange contracts
Security
% of
NAV
(40,029)
1,498,090
Financial Derivative Instruments 2.20%
Open Forward Foreign Currency Exchange Contracts 1.20%
Nominal
Amount
Unrealised
Gain/(Loss)
USD
(6,336) Big Lots Inc
(2,922) Cavium Inc
950,770
183,174
1.23
(4,290)
(0.03)
178,884
1.20
Unrealised
Gain/(Loss)
USD
% of
NAV
Contracts for Difference 1.00%
Lazard Global Investment Funds plc
3,816
0.03
(32,915)
(0.22)
11,562
0.08
(9,084) KBR Inc
(4,736)
(0.03)
(3,796) Lincoln National Corp
10,937
0.07
(3,642) Linear Technology Corp
(7,916)
(0.05)
2,166 Madison Square Garden Co
27,927
0.19
1,486 McKesson Corp
(25,096)
(0.17)
21,765 MDC Partners Inc
56,160
0.38
5,408 Molson Coors Brewing Co
30,074
0.20
(5,166) National Oilwell Varco Inc
(5,259)
(0.04)
(4,043) Nordstrom Inc
(26,844)
(0.18)
0.19
(3,347) Novartis AG
(46)
(0.00)
52,693
0.35
(3,967) Novo Nordisk A/S
3,836
0.03
(2,562) Owens & Minor Inc
(4,465)
(0.03)
(11,816) Pandora Media Inc
(21,158)
(0.14)
4,548 Alaska Air Group Inc
3,776 Aon Plc
(0.01)
0.20
28,054
(4,952) B&G Foods Inc
0.33
(1,992)
0.01
30,374
(2,733) AO Smith Corp
0.36
49,659
(0.07)
3,228 Advance Auto Parts Inc
(1,910) Amgen Inc
54,125
1,560
1,752 Accenture Plc
5,634 AMC Networks Inc
(0.23)
(10,402)
(0.22)
(3,981) Amdocs Ltd
0.05
(33,457)
(1,408) Jack in the Box Inc
4,904 Natus Medical Inc
(32,176)
633 Alphabet Inc
8,164
(1,229) Netflix Inc
(2,092) ABIOMED Inc
(4,978) Baxter International Inc
112
1,912,763
11,361,614
Total Investments excluding Financial Derivative
Instruments
Maturity
Date
Security
Financial Derivative Instruments 2.20% (continued)
Contracts for Difference 1.00% (continued)
United States 76.21%
1,913,000
Nominal
Amount
5,770
0.04
(18,032)
(0.12)
53,995
0.37
933
0.01
(19,213)
(0.13)
(4,851) Paylocity Holding Corp
(2,238) PayPal Holdings Inc
(2,994) PerkinElmer Inc
12,333 Pfizer Inc
1,526 Pioneer Natural Resources Co
5,399
0.04
(10,728)
(0.07)
23,725
0.16
(7,470)
(0.05)
484
0.00
(5,881)
(0.04)
(10,904)
(0.07)
30,497
0.20
Year ended 31 March 2016
Portfolios of Investments (continued)
Lazard US Fundamental Alternative Fund (continued)
Portfolio of Investments as at 31 March 2016
Security
Unrealised
Gain/(Loss)
USD
% of
NAV
Financial Derivative Instruments 2.20% (continued)
Contracts for Difference 1.00% (continued)
The counterparty for the contracts for difference is Morgan Stanley.
(2,628) Prudential Financial Inc
5,137 Quintiles Transnational Holdings Inc
1,454 Raytheon Co
8,351 Reynolds American Inc
1,478 Rockwell Automation Inc
1,011 Schlumberger Ltd
2,384 Signature Bank
2,945 Skyworks Solutions Inc
2,595
0.02
5,352
0.04
272
0.00
22,366
0.15
733
0.00
(313)
(0.00)
(9,830)
(0.07)
4,594
0.03
2,491 Stryker Corp
20,982
0.14
1,662 SVB Financial Group
(2,023)
(0.01)
(2,902) T Rowe Price Group Inc
(8,731)
(0.06)
1,329 Thermo Fisher Scientific Inc
12,683
0.09
4,721 Tiffany & Co
40,794
0.27
(17,588)
(0.12)
(2,239) Travelers Cos Inc
(1,664) Under Armour Inc
(3,785)
(0.03)
(23,484)
(0.16)
(4,406) Unum Group
(20,068)
(0.13)
(7,041) US Bancorp
(1,093)
(0.01)
(6,487)
(0.04)
1,341 United Therapeutics Corp
(17,309) Valley National Bancorp
6,886 Vantiv Inc
28,315
0.19
(2,697) Varian Medical Systems Inc
(6,428)
(0.04)
1,852 Vertex Pharmaceuticals Inc
(12,428)
(0.08)
5,009 VF Corp
18,722
0.13
5,280 Visa Inc
9,297
0.06
(2,530) Wal-Mart Stores Inc
(2,185)
(0.01)
6,636 Wells Fargo & Co
(4,781)
(0.03)
(3,187) WhiteWave Foods Co
(157)
(0.00)
(2,289) Williams-Sonoma Inc
2,861
0.02
(2,792) Wynn Resorts Ltd
(18,067)
(0.12)
(7,849) Zeltiq Aesthetics Inc
(25,245)
(0.17)
(6,520) Zendesk Inc
(6,020)
(0.04)
8,089 Zoetis Inc
(4,080)
(0.03)
Unrealised gain on contracts for difference
801,038
5.37
Unrealised loss on contracts for difference
(651,225)
(4.37)
Net unrealised gain on contracts for difference
149,813
1.00
Total Financial Derivative Instruments
328,697
2.20
Total Investments
11,690,311
78.41
Other Net Assets
3,217,641
21.59
14,907,952
100.00
Net Assets
The counterparty for the open forward foreign currency exchange contracts is State
Street Bank and Trust Company.
Analysis of total assets (unaudited)
Transferable securities dealt in on another regulated market
Over the counter financial derivative instruments
Fixed income securities are primarily classified by the country of
incorporation of the issuer for corporate fixed income securities and country of issuer for
government type fixed income securities.
% of total assets
70.26
6.09
Other assets
23.65
Total Assets
100.00
Lazard Global Investment Funds plc
* A portion of these securities is pledged as collateral in connection with the collateral
requirements for the contracts for difference held by the Fund. The amount of collateral
that is pledged is USD 3,825,745.
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Nominal
Amount
113
Statements of Major Changes in Investments (unaudited)
Lazard Emerging Markets Bond Fund
LAZARD GLOBAL INVESTMENT FUNDS PLC
In accordance with the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011,
a statement of largest changes in the composition of the Portfolios of Investments during the reporting year is provided to ensure
that shareholders can identify changes in the investments held by the Funds. These are defined as the aggregate purchases and sales
of an investment (including maturities but excluding repurchase agreements, overnight discount notes and time deposits, which are
employed chiefly as a means of seeking to ensure efficient portfolio management) exceeding 1.00% of the total value of purchases and
sales for the year. At a minimum the largest 20 purchases and sales are listed.
114
Acquisitions
Cost
Disposals
Proceeds
USD
USD
1MDB Global Investments Ltd 4.400% 09/03/2023
954,360
1MDB Global Investments Ltd 4.400% 09/03/2023
954,150
Croatia Government 6.000% 26/01/2024
940,028
Azerbaijan Republic 4.750% 45369
898,880
Azerbaijan Republic 4.750% 45369
838,283
Kenya Government 6.875% 24/06/2024
781,240
Kazakhstan Government 5.125% 21/07/2025
836,765
Kazakhstan Government 5.125% 21/07/2025
752,208
Kenya Government 6.875% 24/06/2024
702,609
Croatia Government 6.000% 26/01/2024
741,952
Namibia Government 5.250% 29/10/2025
647,656
Lithuania Government 6.625% 01/02/2022
698,475
Nigeria Government 6.750% 28/01/2021
639,975
Banque Centrale de Tunisie International Bond 5.750% 30/01/2025
697,269
Latvia Government 5.250% 16/06/2021
565,810
Nigeria Government 6.750% 28/01/2021
636,223
Banque Centrale de Tunisie International Bond 5.750% 30/01/2025
554,580
Namibia Government 5.250% 29/10/2025
593,078
EMATUM Via Mozambique EMATUM Finance 2020 BV 6.305% 11/09/2020
530,611
Latvia Government 5.250% 16/06/2021
566,125
Slovenia Government 5.500% 26/10/2022
488,905
Senegal Government 6.250% 30/07/2024
520,085
Lithuania Government 6.625% 01/02/2022
481,312
EMATUM Via Mozambique EMATUM Finance 2020 BV 6.305% 11/09/2020
517,476
Angola Government 9.500% 12/11/2025
453,850
South Africa Government 5.500% 09/03/2020
447,932
Senegal Government 6.250% 30/07/2024
420,475
Angola Government 9.500% 12/11/2025
405,960
Zambia Government 8.500% 14/04/2024
394,914
Brazil Government 4.875% 22/01/2021
378,654
Ecuador Government 10.500% 24/03/2020
394,860
Zambia Government 8.500% 14/04/2024
374,100
Brazil Government 2.625% 05/01/2023
345,599
Poland Government 3.000% 17/03/2023
360,929
South Africa Government 5.875% 16/09/2025
343,466
Rwanda Government 6.625% 02/05/2023
304,800
Serbia Government 4.875% 25/02/2020
330,265
Ecuador Government 10.500% 24/03/2020
285,030
Ghana Government 10.750% 14/10/2030
299,063
Philippines Government 4.000% 15/01/2021
276,658
Morocco Government 5.500% 11/12/2042
287,700
South Africa Government 5.875% 16/09/2025
248,308
Republic of Angola Via Northern Lights III BV 7.000% 16/08/2019
280,725
Philippines Government 8.375% 17/06/2019
247,875
Egypt Government 5.875% 11/06/2025
273,200
Turkey Government 3.250% 23/03/2023
247,700
Pertamina Persero PT 4.300% 20/05/2023
266,063
Republic of Angola Via Northern Lights III BV 7.000% 16/08/2019
246,250
Kazakhstan Government 4.875% 14/10/2044
265,600
Indonesia Government 6.625% 17/02/2037
245,625
Paraguay Government 4.625% 25/01/2023
260,613
Lazard Global Investment Funds plc
Year ended 31 March 2016
Statements of Major Changes in Investments
(unaudited) (continued)
Lazard Emerging Markets Local Debt Fund
Cost
Disposals
Proceeds
USD
USD
Brazil Treasury Bill - Zero coupon 01/01/2019
29,825,269
Brazil Treasury Bill - Zero coupon 01/01/2019
21,562,316
Brazil Treasury Bill - Zero coupon 01/01/2017
13,433,063
Brazil Treasury Bill - Zero coupon 01/01/2017
19,396,999
Mexico Government 5.000% 11/12/2019
9,372,229
Hungary Government 6.500% 24/06/2019
11,608,806
Poland Government 2.500% 25/07/2018
8,963,956
Poland Government 5.750% 23/09/2022
10,594,949
Poland Government 5.250% 25/10/2020
8,543,169
Indonesia Treasury 7.875% 15/04/2019
9,638,007
Mexico Government 10.000% 05/12/2024
8,519,370
Thailand Government 3.875% 13/06/2019
9,248,021
South Africa Government 10.500% 21/12/2026
8,377,500
Turkey Government 6.300% 14/02/2018
8,485,830
Brazil Government 10.000% 01/01/2025
7,799,148
Colombia Government 10.000% 24/07/2024
7,198,234
Turkey Government 8.000% 12/03/2025
6,737,867
Brazil Government 10.000% 01/01/2025
7,002,352
Indonesia Government 8.375% 15/03/2024
6,075,433
Poland Government - Zero coupon 25/07/2016
6,900,907
Thailand Government 3.875% 13/06/2019
5,875,176
Poland Government 2.500% 25/07/2018
5,816,377
Colombia Government 5.000% 21/11/2018
5,802,156
Poland Government 5.500% 25/10/2019
5,591,061
Malaysia Government 4.048% 30/09/2021
5,517,706
Indonesia Treasury 9.000% 15/03/2029
5,140,363
Turkey Government 10.400% 27/03/2019
5,452,286
Malaysia Government 4.160% 15/07/2021
4,946,920
Poland Government 5.750% 23/09/2022
5,259,309
Brazil Treasury Bill - Zero coupon 01/04/2016
4,713,414
Colombia Government 10.000% 24/07/2024
5,099,374
Malaysia Government 3.654% 31/10/2019
4,312,296
Russian Federation 6.400% 27/05/2020
4,954,255
Mexico Government 5.000% 11/12/2019
4,236,479
Colombia Government 7.250% 15/06/2016
4,738,657
Thailand Government 3.650% 17/12/2021
4,207,799
Indonesia Government 7.875% 15/04/2019
4,661,628
Brazil Treasury Bill - Zero coupon 01/07/2017
4,150,231
Thailand Government 3.650% 17/12/2021
4,660,513
Colombia Government 12.000% 22/10/2015
4,121,639
Brazil Government 10.000% 01/01/2021
4,598,738
Hungary Government 5.500% 22/12/2016
3,798,256
Brazil Treasury Bill - Zero coupon 01/04/2016
4,533,387
Colombia Government 7.250% 15/06/2016
3,628,947
Poland Government - Zero coupon 25/07/2016
4,493,290
Brazil Treasury Bill - Zero coupon 01/01/2016
3,546,792
Hungary Government 5.500% 24/06/2025
4,490,998
South Africa Government 7.250% 15/01/2020
3,224,127
Poland Government 3.250% 25/07/2025
4,168,995
Brazil Treasury Bill - Zero coupon 01/01/2018
2,942,653
Russian Federation 7.000% 25/01/2023
4,059,902
Russian Federation 7.000% 25/01/2023
2,819,247
Turkey Government 9.400% 08/07/2020
3,943,559
South Africa Government 10.500% 21/12/2026
2,705,673
Brazil Treasury Bill - Zero coupon 01/07/2017
3,929,704
Romania Government 5.900% 26/07/2017
2,553,663
Hungary Government 5.500% 22/12/2016
3,900,555
Turkey Government 10.400% 27/03/2019
2,491,363
Brazil Treasury Bill - Zero coupon 01/01/2016
3,529,711
Mexico Government 10.000% 20/11/2036
2,483,914
South Africa Government 8.250% 31/03/2032
3,388,246
Romania Government 5.950% 11/06/2021
2,483,472
Thailand Government 3.850% 12/12/2025
3,325,415
Indonesia Treasury 8.375% 15/09/2026
3,108,967
Malaysia Government 3.955% 15/09/2025
3,023,128
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Acquisitions
115
Statements of Major Changes in Investments
(unaudited) (continued)
Lazard Emerging Markets Total Return Debt Fund
Acquisitions
Cost
Disposals
Cost
LAZARD GLOBAL INVESTMENT FUNDS PLC
USD
116
USD
United States Treasury Bill - Zero coupon 25/06/2015
99,997,783
United States Treasury Bill - Zero coupon 25/06/2015
99,999,929
United States Treasury Bill - Zero coupon 12/11/2015
99,988,611
United States Treasury Bill - Zero coupon 12/11/2015
99,997,561
United States Treasury Note 1.625% 31/07/2020
93,836,925
United States Treasury Note 1.625% 31/07/2020
93,128,738
United States Treasury Note 1.375% 31/08/2020
87,966,453
United States Treasury Note 1.375% 31/08/2020
86,898,973
United States Treasury Bill - Zero coupon 23/07/2015
74,996,952
United States Treasury Bill - Zero coupon 23/07/2015
75,000,063
United States Treasury Note 2.250% 15/11/2025
71,525,684
United States Treasury Note 2.250% 15/11/2025
74,131,938
United States Treasury Note 1.625% 30/11/2020
71,318,082
United States Treasury Note 1.625% 30/11/2020
72,679,210
Mexico Government 10.000% 05/12/2024
50,451,900
United States Treasury Note 1.375% 29/02/2020
56,288,630
United States Treasury Bill - Zero coupon 30/07/2015
49,998,436
United States Treasury Bill - Zero coupon 16/07/2015
50,000,292
United States Treasury Bill - Zero coupon 02/07/2015
49,998,321
United States Treasury Bill - Zero coupon 30/07/2015
50,000,243
United States Treasury Bill - Zero coupon 10/09/2015
49,997,861
United States Treasury Bill - Zero coupon 02/07/2015
50,000,094
United States Treasury Bill - Zero coupon 09/07/2015
49,997,500
United States Treasury Bill - Zero coupon 09/07/2015
50,000,010
United States Treasury Bill - Zero coupon 16/07/2015
49,996,013
United States Treasury Bill - Zero coupon 10/09/2015
50,000,001
United States Treasury Bill - Zero coupon 10/03/2016
49,985,616
United States Treasury Bill - Zero coupon 16/04/2015
49,999,833
United States Treasury Bill - Zero coupon 11/02/2016
49,985,050
United States Treasury Bill - Zero coupon 18/02/2016
49,984,986
United States Treasury Bill - Zero coupon 18/02/2016
49,983,111
United States Treasury Bill - Zero coupon 11/02/2016
49,984,705
United States Treasury Bill - Zero coupon 03/03/2016
49,975,000
United States Treasury Bill - Zero coupon 03/03/2016
49,983,834
United States Treasury Bill - Zero coupon 09/06/2016
49,963,625
United States Treasury Bill - Zero coupon 09/06/2016
49,981,826
United States Treasury Bill - Zero coupon 12/05/2016
44,968,838
Mexico Government 10.000% 05/12/2024
45,354,382
United States Treasury Bill - Zero coupon 10/12/2015
39,998,283
United States Treasury Bill - Zero coupon 12/05/2016
44,982,793
Brazil Government 6.000% 07/04/2026
32,850,286
United States Treasury Bill - Zero coupon 10/12/2015
39,999,860
United States Treasury Note 1.250% 31/03/2021
32,281,418
United States Treasury Bill - Zero coupon 15/10/2015
28,600,286
Slovenia Government 5.850% 10/05/2023
32,193,341
United States Treasury Note 1.625% 15/02/2026
31,710,392
United States Treasury Bill - Zero coupon 15/10/2015
28,599,838
Lazard Global Investment Funds plc
Year ended 31 March 2016
Statements of Major Changes in Investments
(unaudited) (continued)
Lazard Emerging Markets Allocation Fund
Cost
Disposals
Proceeds
USD
United States Treasury Note 1.250% 31/10/2015
401,939
United States Treasury Note 0.250% 30/09/2015
385,242
HDFC Bank Ltd - ADR
332,373
United States Treasury Note 0.375% 31/08/2015
300,341
United States Treasury Note 0.250% 31/12/2015
300,071
Tencent Holdings Ltd
262,391
Industrial & Commercial Bank of China Ltd
260,299
Taiwan Semiconductor Manufacturing Co Ltd - ADR
255,835
Ping An Insurance Group Co of China Ltd
251,441
Hotel Shilla Co Ltd
230,891
Naspers Ltd
222,390
Vipshop Holdings Ltd - ADR
222,087
Baidu Inc - ADR
214,488
United States Treasury Note 2.625% 29/02/2016
202,110
United States Treasury Note 2.125% 31/12/2015
201,415
United States Treasury Note 0.250% 15/10/2015
200,141
Dr Reddy's Laboratories Ltd - ADR
199,717
YPF SA - ADR
177,360
Eclat Textile Co Ltd
172,867
China Mobile Ltd - ADR
169,953
Credicorp Ltd
165,500
Mondi Plc
158,266
BDO Unibank Inc
155,521
New Oriental Education & Technology Group Inc - ADR
141,187
Grupo Financiero Banorte SAB de CV
135,995
Gruma SAB de CV
130,407
China Medical System Holdings Ltd
117,933
PICC Property & Casualty Co Ltd
116,721
Hon Hai Precision Industry Co Ltd
111,520
KEPCO Plant Service & Engineering Co Ltd
108,155
Grupo Televisa SAB - ADR
102,778
Lazard Global Investment Funds plc
USD
Lazard Global Investment Funds plc - Lazard Emerging
Markets Total Return Debt Fund
5,893,796
Lazard Global Investment Funds plc -Lazard Emerging
Markets Debt Blend Fund
2,785,101
Baidu Inc - ADR
697,860
Taiwan Semiconductor Manufacturing Co Ltd
676,649
Samsung Electronics Co Ltd
593,635
NetEase Inc - ADR
587,232
Ping An Insurance Group Co of China Ltd
532,754
Axis Bank Ltd - GDR
473,267
United States Treasury Note 0.375% 15/11/2015
450,174
China Mobile Ltd - ADR
415,239
United States Treasury Note 1.250% 31/10/2015
400,366
China Construction Bank Corp
376,631
China State Construction International Holdings Ltd
344,820
HDFC Bank Ltd - ADR
339,395
X5 Retail Group NV -GDR
305,326
United States Treasury Note 0.250% 31/12/2015
300,163
Grupo Financiero Banorte SAB de CV
292,418
Tencent Holdings Ltd
275,734
SK Hynix Inc
272,526
YPF SA - ADR
260,193
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Acquisitions
117
Statements of Major Changes in Investments
(unaudited) (continued)
Lazard Emerging Markets Debt Blend Fund
Acquisitions
Cost
Disposals
Proceeds
LAZARD GLOBAL INVESTMENT FUNDS PLC
USD
118
USD
Ivory Coast Government 5.750% 31/12/2032
60,808,413
Ivory Coast Government 5.750% 31/12/2032
67,510,328
Russian Federation 4.875% 16/09/2023
57,055,442
Brazil Treasury Bill - Zero coupon 01/01/2017
52,601,558
Brazil Treasury Bill - Zero coupon 01/01/2019
53,155,581
South Africa Government 8.250% 31/03/2032
48,031,080
Turkey Government 8.000% 12/03/2025
49,737,016
Poland Government 5.500% 25/10/2019
38,907,567
South Africa Government 10.500% 21/12/2026
44,817,223
Russian Federation 4.875% 16/09/2023
38,317,175
South Africa Government 8.250% 31/03/2032
38,508,300
Brazil Treasury Bill - Zero coupon 01/01/2019
38,140,403
South Africa Government 8.250% 15/09/2017
37,923,548
Russian Federation 7.500% 31/03/2030
36,461,815
Slovenia Government 5.850% 10/05/2023
35,108,828
South Africa Government 8.250% 15/09/2017
36,218,219
Indonesia Government 8.375% 15/03/2024
31,444,936
Turkey Government 6.875% 17/03/2036
33,981,563
Indonesia Government 7.875% 15/04/2019
31,201,968
Russian Federation 7.500% 31/03/2030
33,748,473
Ecuador Government 10.500% 24/03/2020
28,998,388
Turkey Government 6.300% 14/02/2018
33,306,118
Hungary Government 5.500% 24/06/2025
27,953,658
Lithuania Government 6.625% 01/02/2022
31,679,246
Turkey Government 6.875% 17/03/2036
27,187,579
Indonesia Government 9.000% 15/03/2029
30,701,393
Mexico Government 5.000% 11/12/2019
26,658,045
Ecuador Government 7.950% 20/06/2024
30,606,698
Thailand Government 3.850% 12/12/2025
25,909,561
Hungary Government 6.500% 24/06/2019
30,001,433
Brazil Treasury Bill - Zero coupon 01/01/2017
25,438,134
Indonesia Government 7.875% 15/04/2019
28,843,732
Brazil Government 4.250% 07/01/2025
25,213,276
Malaysia Government 3.654% 31/10/2019
28,431,699
Sri Lanka Government 6.850% 03/11/2025
24,997,225
Thailand Government 3.875% 13/06/2019
27,948,365
Mexico Government 10.000% 05/12/2024
24,902,394
Poland Government 4.750% 25/10/2016
27,602,962
Malaysia Government 3.043% 22/04/2025
24,797,584
Mexico Government 5.000% 11/12/2019
26,070,445
Lazard Global Investment Funds plc
Year ended 31 March 2016
Statements of Major Changes in Investments
(unaudited) (continued)
Lazard Emerging Markets Debt Unrestricted Blend Fund
Cost
Disposals
Proceeds
USD
USD
Brazil Treasury Bill - Zero coupon 01/01/2019
21,129,447
Brazil Treasury Bill - Zero coupon 01/01/2019
9,064,394
Mexico Government 5.000% 11/12/2019
15,510,289
Thailand Government 3.875% 13/06/2019
7,751,588
Ivory Coast Government 5.750% 31/12/2032
14,111,101
Russian Federation 4.875% 16/09/2023
7,156,000
Russian Federation 4.875% 16/09/2023
13,684,530
Poland Government 5.750% 23/09/2022
6,349,795
Poland Government 5.750% 23/09/2022
13,214,910
Indonesia Government 9.000% 15/03/2029
6,044,378
Argentina Government 8.280% 31/12/2033
12,455,020
Malaysia Government 3.654% 31/10/2019
5,340,925
Thailand Government 3.875% 13/06/2019
10,059,730
Turkey Government 6.300% 14/02/2018
5,107,623
Turkey Government 8.000% 12/03/2025
9,987,697
Poland Government 4.750% 25/10/2016
4,842,844
Argentina Government 2.500% 31/12/2038
9,415,697
Indonesia Government 7.875% 15/04/2019
4,566,121
Colombia Government 10.000% 24/07/2024
9,269,025
Colombia Government 10.000% 24/07/2024
4,545,316
Slovenia Government 5.850% 10/05/2023
9,177,207
Mexico Government 5.000% 11/12/2019
4,236,743
Brazil Government 4.250% 07/01/2025
9,065,799
Lithuania Government 6.625% 01/02/2022
4,213,916
Thailand Government 3.850% 12/12/2025
8,970,727
Petronas Capital Ltd 3.500% 18/03/2025
4,120,657
Turkey Government 6.300% 14/02/2018
8,896,432
Croatia Government 6.625% 14/07/2020
4,112,444
Indonesia Government 7.875% 15/04/2019
8,849,874
Mexico Government 6.050% 11/01/2040
3,933,836
South Africa Government 10.500% 21/12/2026
8,744,759
Ivory Coast Government 5.750% 31/12/2032
3,833,100
Indonesia Government 9.000% 15/03/2029
8,547,591
Thailand Government 3.850% 12/12/2025
3,587,491
Malaysia Government 4.048% 30/09/2021
8,509,417
Argentina Government 8.280% 31/12/2033
3,491,634
Hungary Government 5.500% 24/06/2025
7,867,437
Peru Government 4.125% 25/08/2027
3,408,021
Malaysia Government 3.654% 31/10/2019
7,548,137
Hungary Government 6.500% 24/06/2019
3,249,323
Slovenia Government 5.250% 18/02/2024
7,504,831
Slovenia Government 5.850% 10/05/2023
3,190,205
Mexico Government 10.000% 20/11/2036
3,156,156
Sri Lanka Government 6.850% 03/11/2025
3,122,081
South Africa Government 8.250% 31/03/2032
3,000,417
Russian Federation 7.500% 27/02/2019
2,917,658
Hungary Government 6.375% 29/03/2021
2,843,750
Brazil Government 4.250% 07/01/2025
2,831,150
Hungary Government 5.375% 25/03/2024
2,826,105
Mexico Government 4.600% 23/01/2046
2,785,588
Slovenia Government 5.250% 18/02/2024
2,777,681
Brazil Government 4.875% 22/01/2021
2,737,885
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Acquisitions
119
Statements of Major Changes in Investments
(unaudited) (continued)
Lazard Opportunities Fund
Acquisitions
Cost
Disposals
Proceeds
GBP
LAZARD GLOBAL INVESTMENT FUNDS PLC
SPDR S&P500 ETF Trust
120
52,109,850
GBP
SPDR S&P500 ETF Trust
52,269,597
United Kingdom Gilt 4.000% 07/09/2016
9,023,564
United Kingdom Gilt 2.000% 22/01/2016
7,757,078
United Kingdom Gilt 2.000% 22/01/2016
7,192,531
United Kingdom Gilt 4.000% 07/09/2016
5,596,731
United Kingdom Gilt 1.750% due 22/01/2017
5,564,736
United Kingdom Gilt 4.750% 07/09/2015
5,556,812
United Kingdom Gilt 4.750% 07/09/2015
5,424,786
United Kingdom Gilt 8.000% 07/12/2015
3,798,054
United Kingdom Gilt 8.000% 07/12/2015
4,413,061
United Kingdom Gilt 1.750% 22/01/2017
2,444,914
United Kingdom Treasury Bill - Zero coupon 08/02/2016
2,995,337
United Kingdom Treasury Bill - Zero coupon 29/03/2016
1,299,911
United Kingdom Treasury Bill - Zero coupon 08/08/2016
2,496,437
Affymetrix Inc 4.000% 01/07/2019
1,262,795
United Kingdom Treasury Bill - Zero coupon 04/04/2016
2,443,745
Universal Corp
1,102,376
United Kingdom Treasury Bill - Zero coupon 18/01/2016
1,598,610
United Kingdom Gilt 8.000% 07/12/2015
1,001,033
United Kingdom Treasury Bill - Zero coupon 09/11/2015
1,597,202
United Kingdom Treasury Bill - Zero coupon 08/02/2016
999,829
United Kingdom Treasury Bill - Zero coupon 18/07/2016
1,596,300
United Kingdom Treasury Bill - Zero coupon 08/08/2016
794,494
United Kingdom Treasury Bill - Zero coupon 01/09/2015
1,498,407
Valeant Pharmaceuticals International Inc
778,431
United Kingdom Treasury Bill - Zero coupon 29/03/2016
1,480,015
Frontier Communications Corp 11.125% 29/06/2018
693,563
United Kingdom Treasury Bill - Zero coupon 12/10/2015
1,449,365
NorthStar Realty Europe Corp 4.625% 15/12/2016
652,214
United Kingdom Treasury Bill - Zero coupon 25/01/2016
999,513
iShares MSCI Emerging Markets ETF
639,625
Element Financial Corp 4.250% 30/06/2020
813,501
Element Financial Corp 4.250% 30/06/2020
632,747
Valeant Pharmaceuticals International Inc
752,000
Barnes & Noble Inc 7.750% 18/08/2021
600,268
Suzuki Motor Corp - Zero coupon 31/03/2021
700,360
Cemex SAB de CV 3.720% 15/03/2020
541,413
Frontier Communications Corp 11.125% 29/06/2018
692,740
FireEye Inc 1.625% 01/06/2035
537,198
Lazard Global Investment Funds plc
Year ended 31 March 2016
Statements of Major Changes in Investments
(unaudited) (continued)
Lazard Global Hexagon Equity Fund
Cost
Disposals
Proceeds
USD
USD
United States Treasury Bill - Zero coupon 26/05/2016
17,503,531
United States Treasury Bill - Zero coupon 07/01/2016
19,247,336
United States Treasury Bill - Zero coupon 07/01/2016
17,097,762
United States Treasury Bill - Zero coupon 03/03/2016
15,492,577
United States Treasury Bill - Zero coupon 03/03/2016
16,509,684
United States Treasury Bill - Zero coupon 10/12/2015
14,006,268
United States Treasury Bill - Zero coupon 04/02/2016
15,992,493
United States Treasury Bill - Zero coupon 26/05/2016
13,998,385
United States Treasury Bill - Zero coupon 28/04/2016
15,134,148
United States Treasury Bill - Zero coupon 04/02/2016
13,596,518
United States Treasury Bill - Zero coupon 31/03/2016
14,504,437
United States Treasury Bill - Zero coupon 12/11/2015
12,505,030
Anheuser-Busch InBev SA
12,711,252
United States Treasury Bill - Zero coupon 15/10/2015
12,499,382
iShares MSCI Brazil Capped ETF
11,573,134
United States Treasury Bill - Zero coupon 28/04/2016
12,033,590
United States Treasury Bill - Zero coupon 15/10/2015
8,499,419
United States Treasury Bill - Zero coupon 31/03/2016
11,495,307
United States Treasury Bill - Zero coupon 10/12/2015
8,496,760
United States Treasury Bill - Zero coupon 23/06/2016
11,371,031
United States Treasury Bill - Zero coupon 23/06/2016
7,999,734
Anheuser-Busch InBev SA
10,476,374
United States Treasury Bill
7,997,836
United States Treasury Bill - Zero coupon 17/09/2015
9,499,196
United States Treasury Bill
7,992,405
JM Smucker Co
6,558,112
United States Treasury Bill - Zero coupon 12/11/2015
7,499,079
Kellogg Co
6,436,123
United States Treasury Bill
7,498,651
United States Treasury Bill - Zero coupon 12/11/2015
6,299,246
United States Treasury Bill
6,918,429
United States Treasury Bill - Zero coupon 25/06/2015
5,999,859
Wolters Kluwer NV
6,403,039
Novartis AG
5,884,875
United States Treasury Bill - Zero coupon 17/09/2015
4,999,621
Fresenius SE & Co KGaA
5,371,980
Novartis AG
4,573,795
United States Treasury Bill - Zero coupon 23/06/2016
5,000,921
United States Treasury Bill
4,400,167
United States Treasury Bill - Zero coupon 21/07/2016
5,000,368
Bristol-Myers Squibb Co
4,205,481
Daiwa House Industry Co Ltd
4,676,533
Union Pacific Corp
3,999,504
ING Groep NV
4,580,223
Sampo Oyj
4,569,961
United States Treasury Bill - Zero coupon 23/07/2015
4,499,673
United States Treasury Bill - Zero coupon 13/10/2016
4,493,401
Lazard Global Investment Funds plc
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Acquisitions
121
Statements of Major Changes in Investments
(unaudited) (continued)
Lazard European Alternative Fund
Acquisitions
Cost
Disposals
Cost
LAZARD GLOBAL INVESTMENT FUNDS PLC
EUR
122
EUR
German Treasury Bill - Zero coupon 27/04/2016
64,673,144
German Treasury Bill - Zero coupon 27/04/2016
26,706,659
German Treasury Bill - Zero coupon 27/07/2016
45,670,813
German Treasury Bill - Zero coupon 27/07/2016
18,232,271
German Treasury Bill - Zero coupon 18/05/2016
41,162,778
German Treasury Bill - Zero coupon 18/05/2016
14,505,695
Bundesrepublik Deutschland 6.000% 20/06/2016
35,042,880
German Treasury Bill - Zero coupon 09/12/2015
10,253,222
Bundesrepublik Deutschland 4.000% 04/07/2016
31,716,635
Bundesrepublik Deutschland 3.500% 04/01/2016
8,985,528
Bundesrepublik Deutschland 3.750% 04/01/2017
26,436,983
NN Group NV
8,981,113
German Treasury Bill - Zero coupon 09/12/2015
26,365,433
Atlantia SpA
7,908,436
Bundesrepublik Deutschland 3.500% 04/01/2016
23,586,743
Deutsche Telekom AG
6,982,808
NN Group NV
13,557,173
Novartis AG
6,824,066
SAP SE
12,598,378
Delhaize Group
6,777,773
Delhaize Group
12,524,185
Nokia Oyj
6,641,085
ING Groep NV
11,876,935
Covestro AG
6,308,238
Deutsche Telekom AG
11,398,308
Bundesrepublik Deutschland 4.000% 04/07/2016
6,184,004
Pandora A/S
9,758,455
Pandora A/S
5,935,842
Carlsberg A/S
8,868,719
ING Groep NV
5,758,349
GEA Group AG
8,088,852
KBC Groep NV
5,654,393
Atlantia SpA
7,934,137
Bayer AG
5,601,870
Nokia Oyj
7,015,029
SAP SE
5,534,104
Novartis AG
6,825,077
Assa Abloy AB
5,516,663
Saab AB
6,488,231
Credit Suisse Group AG
5,155,873
Covestro AG
6,058,535
Nokian Renkaat Oyj
5,094,091
KBC Groep NV
6,003,753
Volvo AB
5,074,042
Bayer AG
5,615,697
RELX NV
4,936,525
Telefonica Deutschland Holding AG
4,448,270
Deutsche Bank AG
4,233,732
UBS Group AG
4,156,368
ABN AMRO Group NV
3,890,667
Carlsberg A/S
3,572,799
Yara International ASA
3,359,966
Bundesrepublik Deutschland
3,284,389
Mobistar SA
3,032,260
Adecco SA
2,943,007
GrandVision NV
2,920,586
GEA Group AG
2,906,938
Lazard Global Investment Funds plc
Year ended 31 March 2016
Statements of Major Changes in Investments
(unaudited) (continued)
Lazard US Fundamental Alternative Fund
Cost
Disposals
Proceeds
USD
USD
United States Treasury Bill - Zero coupon 28/04/2016
4,009,884
United States Treasury Bill - Zero coupon 28/04/2016
2,098,415
United States Treasury Bill - Zero coupon 31/03/2016
1,949,163
United States Treasury Bill - Zero coupon 31/03/2016
599,825
United States Treasury Bill - Zero coupon 18/08/2016
1,496,605
Newfield Exploration Co
115,016
United States Treasury Bill - Zero coupon 15/09/2016
1,496,127
Gulfport Energy Corp
88,707
United States Treasury Bill - Zero coupon 26/05/2016
1,298,535
Cabot Oil & Gas Corp
69,017
United States Treasury Bill - Zero coupon 23/06/2016
1,297,881
Molson Coors Brewing Co
26,691
United States Treasury Bill - Zero coupon 10/11/2016
1,000,050
EQT Corp
11,819
United States Treasury Bill - Zero coupon 04/02/2016
999,839
United States Treasury Bill - Zero coupon 13/10/2016
997,241
United States Treasury Bill - Zero coupon 08/12/2016
950,131
United States Treasury Bill - Zero coupon 03/03/2016
949,773
United States Treasury Bill - Zero coupon 21/07/2016
901,635
Newfield Exploration Co
102,300
Gulfport Energy Corp
88,375
Cabot Oil & Gas Corp
68,000
Molson Coors Brewing Co
25,950
EQT Corp
11,708
Callon Petroleum Co
Lazard Global Investment Funds plc
Callon Petroleum Co
3,659
3,250
Year ended 31 March 2016
LAZARD GLOBAL INVESTMENT FUNDS PLC
Acquisitions
123
Appendix 1: UCITS V Remuneration Policy
(unaudited)
LAZARD GLOBAL INVESTMENT FUNDS PLC
The information below is a summary of the Remuneration Policy (the "Policy") for certain entities within the Lazard Asset
Management group (the “Group”) including Lazard Fund Managers (Ireland) Limited (the “Manager”). The Manager acts as a
UCITS management company for Lazard Global Investment Funds plc (the “Company”) and is therefore subject to the remuneration
requirements as prescribed by UCITS V (Directive 2014/91/EU). No remuneration shall be paid through vehicles or methods that
facilitate the avoidance of the requirements of any applicable regulation or code.
124
The aim of the Policy is to ensure that the Manager has a risk-focused approach to remuneration in line with the business strategy,
objectives, values and interests of the Manager and the Company it manages. The Policy may also apply to other Group entities to
which the Manager has delegated the investment management function of the Company. Such delegates will only need to apply the
Policy where they are not already subject to remuneration rules that are equally as effective as the UCITS remuneration requirements,
and where to apply the Policy to such entities is considered (in the opinion of senior management) to be proportionate in the context
of the Manager’s and the delegate’s size, internal organisation and the nature, scope and complexity of its activities.
How remuneration and benefits are calculated
In order to promote effective risk management behaviours, the Manager will:
• assess both the financial and non-financial performance of its employees;
• take into account, where relevant, the position and interests of the Company it manages;
• award bonus payments with regard to the Manager, department and individual performance;
• set salaries at levels which allow it to operate a fully flexible bonus policy; and
• set salaries and benefits taking into account market influences and market rate for the role
Discretionary bonuses are awarded in line with the Manager’s business strategy and the long term goals of that Manager and take
into account the performance of the individual, the business unit and the Manager or Group overall as well as, where relevant, the
performance of the Company and their investment risks. Bonuses are awarded in a manner which promotes sound risk management
and do not encourage excessive risk-taking. Where relevant, they are paid over a period so as to reflect the long-term performance of
the Manager or (where relevant), the Company.
Who is responsible for awarding remuneration and benefits
Compensation across the Group is generally decided at Group level, and overseen by the Group Compensation Committee. The
detail of the compensation to be paid to employees of each of the companies is overseen by the Lazard Asset Management Limited
HR function (with support from the Compliance team). Both HR and Compliance are independent from the business units within
which the employees work. Both the Group Compensation Committee and the HR function are aware of the requirement to ensure
that remuneration arrangements are structured in such a way so as to avoid conflicts of interest between employees and the Group/
companies, the clients, and any UCITS funds, and the processes in place to determine compensation across the companies are
structured with this in mind.
As the remuneration requirements came into effect from 18 March 2016 no quantitative disclosures will be provided until a full years
reporting period is completed.
Lazard Global Investment Funds plc
Year ended 31 March 2016