Lazard World Trust Fund : Fact Sheet - 31st December 2016

Lazard World Trust Fund (previously known as 'The World Trust Fund')

Fact Sheet - 31 December 2016

Société d'Investissement à Capital Fixe

Registered office: 49, avenue J.F. Kennedy, L-1855 Luxembourg

Grand Duchy of Luxembourg, R.C.S. Luxembourg No. B 37.154

Commentary

International equities rose in the month of December, continuing their higher trend since the US presidential election in November, which was interpreted as positive for US and global growth. Another US rate hike added further support to the US dollar. The rejection of constitutional reform in Italy in early December, and the election of a Green Party candidate in Austria who supports European Federalism, helped both markets generate positive performance. The Japanese market remained strong in local currency while rotating into riskier investments, but this was offset somewhat in US dollar terms by further weakness in the Japanese yen. The strengthening US dollar also put pressure on emerging market stocks. Helping the Fund's performance included investments in VinaCapital Vietnam Opportunity Fund (+8%), Tetragon Financial Group (+9.9%) and JPEL Private Equity (+13.3%) while detracting from performance included Fidelity China Special Situations (-6.8%) and Morgan Stanley China A Share Fund (-7.7%).

Latest Investment Management Actions

During the month the Fund successfully tendered 66% of its holding in Tetragon Financial Group, which had been a Top 10 holding.

Fund Description

The Fund seeks to achieve long-term capital appreciation by investing primarily in a diversified portfolio of companies whose shares trade at a discount to the underlying net asset value. The Fund may also sell short stock indices, stocks, and shares of exchange-traded funds or closed-end funds, not exceeding 100% of the Fund's net assets.

At a -13.6% traded discount, investors can own the Fund's underlying discounts, which trade at a further -25.7% discount. Combined, the double discount of the Fund is an astonishing -35.8%, which implies that every dollar invested in the Fund actually buys $1.55 worth of assets.

Lazard Asset Management LLC was appointed as Manager of Lazard World Trust Fund at the inception of the Fund, 1 July 1991.

Kun Deng is a Managing Director of Lazard Asset Management, responsible for the firm's Discounted Assets strategies in global, international, and emerging markets.

He has been advising Lazard World Trust Fund since 1997. Kun has the CFA charter.

Lazard Asset Management is known for its global perspective on investing and years of experience with global, regional, and domestic portfolios. With more than 300 investment personnel worldwide, and over US$ 180 billion in assets under management, we have offices located throughout the world in Bahrain, Boston, Frankfurt, Hong Kong, London, Madrid, Milan, Montreal, New York, San Francisco, Seoul, Sydney, Tokyo, Toronto, and Zurich.

Performance as of December 31, 2016

Performance	MTD	YTD	1-Year	3-Year	5-Year	10-Year	Annualized since inception**
Lazard World Trust Fund Price * (GBP)	2.3%	20.6%	20.6%	10.6%	12.6%	3.3%	6.7%
Lazard World Trust Fund NAV (GBP)	2.3%	17.8%	17.8%	11.4%	13.0%	3.7%	7.4%
Lazard World Trust Fund Price (US$)	0.8%	0.8%	0.8%	0.2%	7.5%	-1.4%	5.4%
Lazard World Trust Fund NAV (US$)	1.1%	-1.3%	-1.3%	1.0%	7.9%%	-1.0%	6.2%
MSCI AC World Ex USA	2.6%	4.5%	4.5%	-1.8%	5.0%	1.0%	n/a

Source: Lazard Asset Management/MSCI

* As at 1 November 2009 the currency in which the shares of the Fund are traded changed from US dollars to pound sterling. Past performance data up toand including 31 October 2009 has been re-calculated using exchange rates provided by Bloomberg. Past performance data from 1 November 2009is calculated using exchange rates provided by State Street Bank. The Fund's base currency for valuation and performance fee calculation purposes remains as US$.

** Inception date 1 July 2009

The base currency of the Fund is in US dollars and the GBP quoted figure is a sterling rate equivalent.

Lazard World Trust Fund Annual NAV Performance (%)

	2015	2014	2013	2012	2011	2010	2009	2008	2007	2006	2005	2004
Lazard World Trust Fund NAV (Net)*	0.7	3.5	18.9	19.4	-12.8	17.0	48.2	-61.9	7.6	20.2	28.7	25.6
MSCI AC World Ex USA Index	-5.7	-3.9	15.3	16.8	-13.7	11.2	41.5	-45.5	16.7	26.7	16.6	20.9

Source: Lazard Asset Management/FactSet

* The pre-2015 values relate to the fully Diluted NAV. The final subscription date for the exercise of warrants was 31 March 2014 and no additional warrant offers have been made since that date.

Net Regional Exposure

Region	%
Asia (ex-Japan)	39.6
North America	17.0
Japan	11.4
Europe (ex-UK)	15.0
United Kingdom	7.7
Latin America, Africa & Middle East	2.7
Other	5.0

Source: Lazard Asset Management

Top Holdings

Top 10 holdings as December 31, 2016	Weight %	Discount %
Harbourvest Global Private Equity	6.8%	-20.3%
Naspers	6.8%	-30.5%
Fidelity China Special Situations	5.6%	-11.4%
JPMorgan Japanese	4.8%	-12.6%
First Pacific	4.8%	-47.6%
Vinacapital Vietnam Opportunities	4.7%	-20.5%
JPMorgan Emerging Markets	4.4%	-13.0%
JPMorgan Japan Smaller Companies	4.3%	-15.3%
General American Investors	4.0%	-18.0%
Jardine Strategic	3.7%	-48.5%

Source: Lazard Asset Management / Morningstar (unless otherwise stated)

Portfolio Composition

Closed-Ended Investment Companies	29.4%
Investment Trusts	46.4%
Corporate Equities	22.6%

Source: Lazard Asset Management

Portfolio Exposure

Source: Lazard Asset Management

Fund Data

	GBP	US$
Market Capitalisation	106.7m	131.6m
Total Assets	123.6m	152.3m
Borrowings	zero
Fully Diluted Net Asset Value	3.397	4.186
Ordinary Share Market Price	2.934	3.614
Discount/Premium	-13.6%

Source: State Street Bank

Company Information as at December 31, 2016

46,635,770 Ordinary shares in issue (including 10,252,277 Treasury shares) = Luxembourg denominator
36,383,493 Ordinary shares (excluding 10,252,277 Treasury shares) = FCA denominator
Ticker:	WTR
ISIN:	LU0483266259
Benchmark:	MSCI All Countries World Index ex USA

Contact Details

Fund Manager:	Lazard Asset Management LLC 30 Rockefeller Plaza New York NY 10112 USA Telephone: [phone]
Company Secretary:	Capita Company Secretarial Services Limited Telephone: [phone]
Registered Office:	Société d'Investissement à Capital Fixe 49, avenue J.F. Kennedy, L-1855 Luxembourg Grand Duchy of Luxembourg, R.C.S. Luxembourg No. B 37.154
Directors:	Philip McLoughlin (Chairman) Duncan Budge James Cave Howard Myles Tony Morrongiello

Furthercopies of the Factsheet areavailable at:

www.lazardworldtrustfund.com

NMPI Status

The Company currently conducts its affairs so that its securities can be recommended by IFAs to ordinary retail investors in accordance with the FCA's rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future. The securities are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are shares in an investment trust.

Important Information

This is a financial promotion and is not intended to be investment advice.

Securities identified in this document are not necessarily held by Lazard Asset Management for all client portfolios, and should not be considered as a recommendation or solicitation to purchase, sell or hold these securities. Itshould also not be assumed that any investment in these securities was, orwill be, profitable.

Information and opinions contained within this document are derived fromsources believed by Lazard to be reliable. Lazard makes no representationas to their accuracy or completeness. All opinions are as at the date of thisdocument and are subject to change without notice.

Lazard World Trust Fund is an investment company incorporated in Luxembourg,whose shares are listed and traded on the London Stock Exchange.

Past performance is not a reliable indicator of future results. The value ofinvestments and the income from them may go down as well as up andinvestors may not get back the amount originally invested.

Investors are reminded that although the shares of the Fund are listed in GBsterling, the base currency of the Fund is US dollars. Therefore, in addition to the fluctuations in the rate of exchange between the currency in whichshares are denominated (US$) and the base currencies of the underlyinginvestments that may affect the value of your investment both positively andnegatively, changes in rates of exchange between the Fund's base currencyand the currency in which it is listed (GBP) may also have the effect of causing the value of your investment to fluctuate.Certain information included herein is derived by Lazard in part from an MSCIindex or indices (the 'Index Data'). However, MSCI has not reviewed this product or report, and does not endorse or express any opinion regardingthis product or report or any analysis or other information contained herein or the author or source of any such information or analysis. MSCI makes no express or implied warranties or representations and shall have no liabilitywhatsoever with respect to any Index Data or data derived therefrom. TheMSCI Index Data may not be further redistributed or used as a basis for otherindices or any securities or financial products.

There is no assurance that Lazard World Trust Fund's objectives or performancetargets will be achieved.

This financial promotion is issued and approved by:

Lazard AssetManagement Limited, 50 Stratton Street, London W1J 8LL

Lazard Asset Management Limited is incorporated in England and Wales withregistered number 525667. It is authorised and regulated by the Financial Conduct Authority

Listing Category: Premium - Equity Closed-ended Investment Fund