Renowned Fund Drops Dollar

[Arklatex]

In a surprise move, Lazard Asset Management’s “The World Trust Fund” has dumped the USD as its primary currency in favor of Sterling. Typically these funds trade in the USD, but the fund’s board apparently felt pressure from shareholders and investors to change its primary currency from the USD to the pound. One can imagine it is because the recent slide of the USD from 89 to 75 in recent months impacts the real return of the fund’s performance.

In the filing, the fund stated:

“In response to comments from a number of shareholders and potential investors in the Fund about the liquidity of the Fund’s shares, the Board, having consulted with the Fund’s brokers, Arbuthnot Securities, believes that having a larger number of shares in issue with a lower share price than at present and changing the currency in which the shares are traded from US dollars to Sterling, should assist in improving the marketability and liquidity of the Fund’s shares and support the attraction and retention of a diverse shareholder base.”

http://www.libertygrotto.com/blog/?p=1605

 

[torchbearer]

educate me on british currency, isn't the sterling an actual coin?

 

[tmosley]

No, the "pound sterling" is just paper, sadly. The UK would be much better off otherwise.

 

[Arklatex]

it use to be based on a pound of sterling silver, now it's just paper.

 

[Trigonx]

wait..... why did they go to the pound. It has the same fate as the dollar if not worse. Isn't the Canadian and Australian dollar doing quite well in respect to other currencies?

 

[LibForestPaul]

wait..... why did they go to the pound. It has the same fate as the dollar if not worse. Isn't the Canadian and Australian dollar doing quite well in respect to other currencies?

to prop it up?

 

[hugolp]

wait..... why did they go to the pound. It has the same fate as the dollar if not worse. Isn't the Canadian and Australian dollar doing quite well in respect to other currencies?

My thoughs exactly. Why the sterling? UK is falling down a cliff with big big deficit spending.

 

[Cowlesy]

wait..... why did they go to the pound. It has the same fate as the dollar if not worse. Isn't the Canadian and Australian dollar doing quite well in respect to other currencies?

Yeah, seems like a bizarre move.

 

[tmosley]

From the frying pan into the fire, as they say.

 

[bill50]

Lazard is an Illuminus. They know what's going to happen with markets in the future.