SCHEDULE: First Trust Entities Disclose 12.52% Stake in Lazard Fund

First Trust Portfolios, First Trust Advisors, and The Charger Corporation jointly report a 12.52% beneficial ownership in Lazard Global Total Return and Income Fund, Inc.

Summary

• First Trust Portfolios L.P., First Trust Advisors L.P., and The Charger Corporation have jointly filed an amendment (Amendment No. 16) to their Schedule 13G.
• They collectively beneficially own 1,629,189 shares of Common stock in Lazard Global Total Return and Income Fund, Inc.
• This ownership represents 12.52% of the class of securities.
• The reporting persons have shared dispositive power over all 1,629,189 shares but hold no sole or shared voting power.
• The shares are primarily held by unit investment trusts sponsored by First Trust Portfolios L.P., and other investment vehicles managed by First Trust Advisors L.P.
• The reporting persons disclaim beneficial ownership of these shares, certifying they are held in the ordinary course of business and not for the purpose of changing or influencing control of the issuer.

Sentiment

Score: 6

Explanation: The filing is largely neutral as it's a regulatory disclosure of ownership. However, a significant institutional stake (12.52%) can be viewed as a positive signal of confidence in the issuer, even if passive, contributing to a slightly positive sentiment.

Positives

• Increased transparency regarding a significant institutional ownership stake in Lazard Global Total Return and Income Fund, Inc.
• The reporting entities certify that the shares were acquired and are held in the ordinary course of business, not for the purpose of changing or influencing control, indicating a passive investment.

Negatives

• No direct negatives are presented in this Schedule 13G filing, which is a disclosure of ownership rather than a performance report.

Risks

• The reporting persons disclaim beneficial ownership of the shares, indicating that the ultimate control and economic interest lie with the underlying unit holders or clients of the investment vehicles.
• The voting power for the shares held by unit investment trusts is generally exercised by the trustee, not the reporting persons, and is typically voted in proportion to other owners, which could limit the reporting persons' influence.

Future Outlook

The filing is a disclosure of current beneficial ownership and does not contain forward-looking statements or guidance regarding the issuer's future performance or the reporting persons' future investment intentions beyond the certification that shares are held in the ordinary course of business.

Management Comments

• "We certify that, to the best of our knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities."
• "Each of First Trust Portfolios L.P., First Trust Advisors L.P. and The Charger Corporation disclaims beneficial ownership of the shares of the issuer identified in this filing."

Industry Context

This Schedule 13G filing indicates a significant passive institutional ownership stake in Lazard Global Total Return and Income Fund, Inc. by entities within the First Trust group. Such disclosures are standard for institutional investors holding more than 5% of a company's shares, providing transparency to the market about major shareholders without implying an activist intent, which would typically be disclosed in a Schedule 13D.

Comparison to Industry Standards

• NA This filing is a disclosure of beneficial ownership, not a performance report, and therefore does not lend itself to a comparison of results against industry benchmarks or specific comparable companies/projects.

Related Party Transactions

• The Charger Corporation is the General Partner of both First Trust Portfolios L.P. and First Trust Advisors L.P., establishing a clear related-party relationship among the reporting entities.
• First Trust Portfolios L.P. acts as sponsor of unit investment trusts, and First Trust Advisors L.P. acts as portfolio supervisor for these trusts, which hold the reported shares.

Stakeholder Impact

• Shareholders: Provides transparency regarding a significant institutional holder, potentially offering a degree of stability or validation for the issuer's stock.
• Management: Awareness of a large, passive institutional holder, which typically does not seek to influence control.

Next Steps

• The reporting persons will continue to file amendments to Schedule 13G as required by changes in their beneficial ownership percentage.

Key Dates

Recommendation

This Schedule 13G filing primarily serves as a regulatory disclosure of a significant passive ownership stake by First Trust entities in Lazard Global Total Return and Income Fund, Inc. While the 12.52% ownership is substantial, the filing explicitly states that the shares are held in the ordinary course of business and not for the purpose of influencing control. This indicates a long-term, passive investment rather than an activist position. As such, the filing itself does not present new fundamental information about the issuer's operational performance or strategic direction that would warrant a 'buy' or 'sell' recommendation. It merely confirms a significant institutional presence. Therefore, a 'hold' recommendation is appropriate, as existing investment theses should remain unchanged based solely on this ownership disclosure.

Keywords

Lazard Global Total Return and Income Fund, First Trust Portfolios, First Trust Advisors, The Charger Corporation, Schedule 13G, Beneficial Ownership, Investment Fund, Common Stock, SEC Filing, Institutional Ownership