Lazard International Equity Select ADR – SMA 3Q14 Factsheet Performance (%; gross of fees; through 30 September 2014) Annualized 3 Months YTD 1 Year 3 Years 5 Years 10 Years Lazard International Equity Select ADR – SMA -5.91 -2.29 6.76 16.29 8.55 7.30 MSCI EAFE Index -5.88 -1.38 4.25 13.65 6.56 6.32 Performance is preliminary, presented gross of fees, and reported in US dollars. Please refer to “GIPS® Composite Information” for the most recent final performance and additional information, including net-of-fees results. The performance quoted represents past performance. Past performance is not a reliable indicator of future results. Strategy Description Lazard International Equity Select ADR seeks to generate strong relative returns over a full market cycle by investing in companies with strong and/or improving financial productivity at attractive valuations. The strategy typically invests in 40–60 US-listed securities of non-US developed-market companies with a market capitalization generally of $5 billion or greater. The benchmark is the MSCI EAFE Index. Allocations (%)2 Investment Characteristics1 Lazard MSCI EAFE Index Lazard MSCI EAFE Lazard Index Underweight/Overweight 52 901 Continental Europe 42.7 45.1 Weighted Average Market Cap ($B) 66.6 60.9 United Kingdom 27.3 21.3 Forward Price/Earnings 14.8 14.8 Japan 19.3 21.0 Forward Return on Equity (%) 14.6 11.2 Middle East 2.9 0.6 Assets Under Management ($B)* 4.0 N/A Number of Securities * As of 30 June 2014. AUM is indicative of total assets in the International Equity Select strategy and includes International Equity Select and International Equity Select ADR assets. Asia-Pacific ex-Japan 2.3 12.1 North America 1.5 0.0 Cash & Equivalents 4.0 0.0 -10 -5 0 5 10 -6 -3 0 3 6 Sector Top Ten Holdings (%)2 Lazard SF22999 Region Financials 19.9 Industrials 17.3 25.7 12.5 Health Care 15.9 11.2 Novartis (ADR) 4.9 Anheuser-Busch InBev 4.1 Consumer Staples 13.5 10.9 Prudential (ADR) 3.4 Consumer Discretionary 11.3 11.6 Bayer 3.4 Telecom Services 5.8 4.9 Novo Nordisk (ADR) 3.3 Energy 4.9 6.9 Teva Pharmaceutical Industries (ADR) 2.9 Materials 3.5 7.7 British American Tobacco (ADR) 2.8 Information Technology 2.8 4.7 SMFG 2.6 Utilities 1.1 3.9 Lloyds Banking Group (ADR) 2.5 Cash & Equivalents 4.0 0.0 Royal Dutch Shell (ADR) 2.4 Holdings (%)2 Equity Cash and Equivalents 96.0 4.0 Japan Daikin Industries (ADR) Daiwa House Industry (ADR) KDDI (ADR) Komatsu (ADR) LIXIL Makita Group (ADR) Ryohin Keikaku Seven & I Holdings (ADR) Softbank (ADR) Sumitomo Mitsui Financial Group (ADR) Sumitomo Mitsui Trust Holdings (ADR) 19.3 Australia BHP (ADR) 1.6 Belgium Anheuser-Busch InBev 4.1 Canada Rogers Communications 1.5 Denmark Carlsberg (ADR) Novo Nordisk (ADR) 4.2 1.8 Netherlands NXP Semiconductors 1.0 Finland Sampo (ADR) 5.0 Spain Red Electrica (ADR) 1.1 France Airbus Group (ADR) BNP Paribas (ADR) Valeo (ADR) 4.1 Germany Bayer (ADR) Bayerische Motoren Werke (ADR) Fresenius SE (ADR) SAP (ADR) 9.1 Sweden Assa Abloy (ADR) Swedbank (ADR) Switzerland Compagnie Financiere Richemont (ADR) Novartis (ADR) Swatch Group (ADR) 7.0 Hong Kong Sands China (ADR) 0.6 Ireland Ryanair Holdings (ADR) 1.5 Israel Teva Pharmaceutical Industries (ADR) 2.9 Italy Atlantia (ADR) ENI (ADR) Mediolanum (ADR) 3.9 United Kingdom Ashtead Group (ADR) Associated British Foods (ADR) BG Group (ADR) British American Tobacco (ADR) HSBC Holdings (ADR) Informa (ADR) Ladbroke Group (ADR) Lloyds Banking Group (ADR) Prudential (ADR) Rexam (ADR) Rolls Royce (ADR) Royal Dutch Shell (ADR) Signet Jewelers Unilever (ADR) Wolseley (ADR) 27.3 Notes 1 Investment characteristics are based upon a portfolio that represents the proposed investment for a fully discretionary account. “Forward” figures represent expected returns. Expected returns do not represent a promise or guarantee of future results and are subject to change. Forward Price/Earnings is defined as Price/Earnings FY1 and Forward Return on Equity as Return on Equity NTM. Source: Lazard, MSCI, IBES 2 The allocations and specific securities mentioned are based upon a portfolio that represents the proposed investment for a fully discretionary account. Allocations and security selection are subject to change. The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the portfolio or that securities sold have not been repurchased. The securities mentioned may not represent the entire portfolio. Source: Lazard, MSCI GIPS Composite Information Composite Name Benchmark Reporting Date Composite Inception Date Reporting Currency period market values. Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Composite returns are shown before the deduction of taxes and custody fees (except for mutual funds which includes all fees). The composite and benchmark returns are reported net of foreign withholding taxes on dividends, interest and capital gains. The composite returns presented represent past performance and is not a reliable indicator of future results, which may vary. Lazard’s International Equity Select ADR – SMA product invests in a relatively small number of securities. Should any individual security held in this portfolio decline in value or underperform relative to the market, it may have a greater impact on the account’s performance than if the account held a larger number of securities. An account invested using this strategy may experience more volatility. As of January 1, 2007, this composite was renamed International Equity Select ADR – SMA from International Equity Select SMA. Lazard International Equity Select ADR – SMA MSCI EAFE Index 30 June 2014 1 January 1994 US Dollar Composite Description The composite returns represent the total returns of all fully discretionary, fee-paying, separately managed account (SMA) portfolios with an International Equity Select ADR – SMA investment mandate and a minimum of $25,000 in assets under management. Performance presented prior to January 1, 2006, represents the historical track record of Lazard’s existing International Equity Select GIPS compliant composite. This prior performance is considered supplemental for this separately managed account composite and also excludes accounts that Lazard historically considered to be non-discretionary. Historical and prospective net of fee composite performance returns are calculated using a 3.0% total fee assumption and is presented before taxes. Actual SMA composite results from January 1, 2006 and forward contain all accounts with bundled fees. Gross of fee results from January 1, 2006 and forward are presented supplemental to compliant net of fee results, as no trading costs are included. Lazard’s International Equity Select ADR – SMA strategy seeks to generate strong relative returns over a market cycle by investing in companies with strong and/or improving financial productivity at attractive valuations. The strategy typically invests in securities of non-US companies with a market capitalization generally of $5 billion or greater. There is no emerging markets exposure. The product may invest in issuers’ US denominated equity securities and ordinary shares, but only if these issuers have US denominated equity securities. Fee Schedule The standard fee schedule for direct contracted relationships for Lazard’s International Equity Select ADR – SMA accounts is 0.75%. All-inclusive SMA fee schedules for each plan sponsor vary and are available through the plan sponsor. A complete list and description of all Lazard composites is available upon request. Benchmark Information The MSCI Europe, Australasia, Far East Index (EAFE) is an arithmetic, market value-weighted average return net of dividends taxation which is derived from over 900 securities listed on the stock exchanges of countries in Europe, Australasia and the Far East. GIPS Compliance and Verification Status Lazard Asset Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Lazard Asset Management has been independently verified for the period of January 1, 1993 through December 31, 2013. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. Verification does not ensure the accuracy of any specific composite presentation. Lazard Asset Management is the “Firm” to which the GIPS Standards apply (Frankfurt office included in Firm definition as of January 1, 2003). GIPS is a registered trademark of CFA Institute. CFA Institute has not been involved in the preparation or review of this presentation. The composite creation date is January 2006. Calculation of Performance Returns Lazard’s account inclusion policy is the first full month or the end of the month in which the account is fully invested. The International Equity Select ADR – SMA composite includes accounts that invest in US denominated equity securities of non-US companies. Previously, the International Equity Select ADR – SMA composite included accounts that invested in issuers’ ordinary shares, without regard to whether these issuers have US denominated securities. The returns of the individual portfolios within the composite are time-weighted, use trade date accounting, are based upon monthly portfolio valuations and include the reinvestment of all earnings as of the payment date. The composite returns are asset-weighted based upon beginning Calendar Annualized QTD YTD 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 1 YR 3 YR 5 YR 10 YR Since Inception Lazard Rate of Return (%; Gross of Fees) 3.29 3.85 22.81 22.43 -4.76 6.58 19.42 -33.20 8.99 23.54 9.71 17.16 24.41 11.36 13.29 7.93 8.04 Lazard Rate of Return (%; Net of Fees) 2.51 2.28 19.13 18.76 -7.63 3.39 15.84 -35.20 5.73 19.84 6.52 13.75 20.68 8.02 9.89 4.70 4.85 Benchmark (%; Rate of Return) 4.09 4.78 22.78 17.32 -12.14 7.75 31.78 -43.38 11.17 26.34 13.54 20.25 23.57 8.10 11.77 6.93 5.78 Composite Standard Deviation (3-yr. Ann.) 15.40 15.24 18.15 20.30 22.11 19.30 15.59 8.47 8.93 11.05 14.77 Benchmark Standard Deviation (3-yr. Ann.) 16.11 16.25 19.37 22.43 26.23 23.58 19.24 9.43 9.33 11.39 15.43 # of Portfolios 3551 3299 3666 4212 5533 7823 13006 18039 17674 828 868 Composite Dispersion (Asset Wtd. Std. Dev.) 0.36 0.43 0.34 0.30 0.35 0.61 0.62 0.56 0.71 0.67 0.42 Composite Assets (USD Millions) 1435.1 1229.9 1107.1 1060.2 1528.5 2047.2 2872.4 6332.7 6180.8 2058.9 2258.9 Total Firm Assets (USD Billions) 177.4 161.6 148.3 124.4 140.6 116.5 79.8 126.9 97.7 77.6 76.5 Lazard International Equity Select ADR – SMA Important Information Published on 24 October 2014. Equity securities will fluctuate in price; the value of your investment will thus fluctuate, and this may result in a loss. Securities in certain non-domestic countries may be less liquid, more volatile, and less subject to governmental supervision than in one’s home market. The values of these securities may be affected by changes in currency rates, application of a country’s specific tax laws, changes in government administration, and economic and monetary policy. Small- and mid-capitalization stocks may be subject to higher degrees of risk, their earnings may be less predictable, their prices more volatile, and their liquidity less than that of large-capitalization or more established companies’ securities. Certain information included herein is derived by Lazard in part from an MSCI index or indices (the ‘‘Index Data’’). However, MSCI has not reviewed this product or report, and does not endorse or express any opinion regarding this 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 liability whatsoever with respect to any Index Data or data derived therefrom. The MSCI Index Data may not be further redistributed or used as a basis for other indices or any securities or financial products. This material is for informational purposes only. It is not intended to, and does not constitute financial advice, fund management services, an offer of financial products or to enter into any contract or investment agreement in respect of any product offered by Lazard Asset Management and shall not be considered as an offer or solicitation with respect to any product, security, or service in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or unauthorized or otherwise restricted or prohibited. Australia: FOR WHOLESALE INVESTORS ONLY. Issued by Lazard Asset Management Pacific Co., ABN 13 064 523 619, AFS License 238432, Level 39 Gateway, 1 Macquarie Place, Sydney NSW 2000. Dubai: Issued and approved by Lazard Gulf Limited, Gate Village 1, Level 2, Dubai International Financial Centre, PO Box 506644, Dubai, United Arab Emirates. Registered in Dubai International Financial Centre 0467. Authorised and regulated by the Dubai Financial Services Authority to deal with Professional Clients only. Germany: Issued by Lazard Asset Management (Deutschland) GmbH, Neue Mainzer Strasse 75, D-60311 Frankfurt am Main. Japan: Issued by Lazard Japan Asset Management K.K., ATT Annex 7th Floor, 2-11-7 Akasaka, Minato-ku, Tokyo 107-0052. Korea: Issued by Lazard Korea Asset Management Co. Ltd., 10F Seoul Finance Center, 136 Sejong-daero, Jung-gu, Seoul, 100-768. United Kingdom: FOR PROFESSIONAL INVESTORS ONLY. Issued by Lazard Asset Management Ltd., 50 Stratton Street, London W1J 8LL. Registered in England Number 525667. Authorised and regulated by the Financial Conduct Authority (FCA). Singapore: Issued by Lazard Asset Management (Singapore) Pte. Ltd., 1 Raffles Place, #15-02 One Raffles Place Tower 1, Singapore 048616. Company Registration Number 201135005W. This document is for “institutional investors” or “accredited investors” as defined under the Securities and Futures Act, Chapter 289 of Singapore and may not be distributed to any other person. United States: Issued by Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, NY 10112.
© Copyright 2024