Lazard Global Equity Income fund

Andy Parsons, advice team manager at The Share Centre, explains how investors looking to diversify their income portfolio could benefit from investing in the Lazard Global Equity Income fund.

"In the past, investors considering equities as an alternative source of income have rarely looked any further than the UK shorelines. However, recently we have seen the slow but steady emergence of global equity income funds that seek to benefit from expanding and increasing global dividend pay outs.

"Drawing stocks from a global universe makes for a larger opportunity set, meaning there are more opportunities for a fund manager to add value and find yield. A global approach diversifies an investor's sector exposure and potentially provides access to some of the very best companies in the sectors and assets that a home market bias can not deliver.

"For example, the US is a market leader in the information technology arena, as well as being innovative in the automobile market along with Germany and Japan.

"The Lazard Global Equity Income fund was launched in October 2007 and is co-managed by Patrick Ryan, Andrew Lacey and Kyle Waldhauer. The underlying investments will generally have a bias towards large and mid cap and investors have the reassurance that a minimum of 90% of the stock chosen will already be held within other Lazard strategies.

On the face of it, performance against its sector peers may look fairly average, however it is classified within the IMA global sector, where the majority simply seek to achieve capital growth. A more pertinent analysis would be a comparison against other global income funds within the sector.

"The fund is currently providing a 3.7% yield and we believe it is managed by a team with the ability to deliver strong capital growth combined with a rising income yield over the long term."