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Lazard
Global Trend
3Q14
Factsheet
Performance
(%; gross of fees; through 30 September 2014)
Annualized
3 Months
YTD
1 Year
Since Inception
(1 December 2011)
Lazard Global Trend
-2.82
1.55
11.13
11.67
MSCI ACWI
-2.31
3.73
11.32
14.74
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 Global Trend is an actively managed, global unconstrained long-only equity strategy that focuses on investment trends. The
strategy invests in listed equity securities in both developed and emerging markets. The Lazard Global Trend investment philosophy
is based on the conviction that trends explain structural changes that take place in the microeconomic environment, or corporate ecosystem, of companies. Investable trends are seen as the drivers of earnings potential for companies that are exposed to these trends. The
Lazard Global Trend team maintains a dynamic list of trends and a proprietary trend-based stock classification system to this end. The
portfolio typically holds 100 stocks, in at least 10 and at most 30 trends. A single trend can represent no more than 20% of the portfolio. For comparative risk analysis purposes, the MSCI All Country World (NTR) Index is recommended. The investment strategy is
unconstrained and style-agnostic with respect to the active positioning of the portfolio.
Investment Characteristics1
Region
Lazard
Lazard
MSCI ACWI Underweight/Overweight
Lazard
MSCI ACWI
85
2,449
North America
53.8
54.1
Weighted Average Market Cap ($B)
85.2
88.7
Continental Europe
17.1
15.8
Assets Under Management ($M)*
87.5
N/A
Emerging Markets
11.3
10.8
United Kingdom
8.0
7.5
Japan
6.0
7.4
Asia-Pacific ex-Japan
0.0
4.2
Middle East
0.0
0.2
Cash & Equivalents
3.7
0.0
Number of Securities
* As of 30 June 2014
Trend Life Cycle (%)2,3
Lazard
Origination
18
S-Curve
47
Saturation
34
Fade-Out
2
Top Ten Trends
(%)3
Lazard
SF22544
Allocations (%)3
Next Gen IT, Big Data & Cloud Computing
13.9
Stakeholder Push for Change
10.7
Rising EM Consumer Spending
10.3
Digital Lifestyle and E-Commerce
10.3
Medicine and Medical Technology
10.0
Automation & Productivity
8.4
Energy Preservation and Sustainability
5.5
Increasingly Specialized Financial Services
4.4
Health Care & Safety
3.6
Expansion of EM Financial Services
3.5
-6
Top Ten Holdings (%)3
Lazard
Amazon.com
2.6
Unilever
2.4
Apple
2.2
Johnson & Johnson
2.2
McDonald's
2.1
EOG Resources
2.0
EMC
2.0
JPMorgan Chase
1.9
Bank of America
1.8
Honeywell International
1.8
-3
0
3
6
Lazard Global Trend
Notes
1 Investment characteristics are based upon a portfolio that represents the proposed investment for a fully discretionary account. Source: Lazard, MSCI
2 The team believes each trend evolves along a unique life cycle and trends can be in different phases in their life cycle at any point in time. They have identified four distinct phases in each
trend life cycle each of which are characterized by different trend properties, appropriate investment styles, and preferred stock characteristics. Total life cycle weight excludes cash and
equivalents.
3 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
Important Information
Published on 30 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. Emerging-market securities carry special risks, such as less developed
or less efficient trading markets, a lack of company information, and differing auditing and legal standards. The securities markets of emerging-market countries can be extremely volatile; performance can also be influenced by political, social, and economic factors affecting companies in emerging-market countries.
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.
GIPS Composite Information
Composite Name
Benchmark
Reporting Date
Composite Inception Date
Reporting Currency
Fee Schedule
Lazard Global Trend
MSCI All Country World Index (Net)
30 June 2014
1 December 2011
US Dollar
Lazard’s standard fee schedule for Global Trend accounts is 0.80% of the first $100 million of
assets and 0.60% of the balance. (This fee schedule may be presented in non-US local currency
equivalents based on prevailing exchange rates.) Actual account fees, inclusive of performancebased fees (if applicable) and all other fees/expenses are used in the construction of composite
net of fee performance unless otherwise noted. A complete list and description of all Lazard
composites is available upon request.
Composite Description
The composite returns represent the total returns of all fully discretionary, fee-paying portfolios
with a Lazard Global Trend investment mandate. Lazard’s Global Trend strategy is an activelymanaged, global unconstrained long-only equity strategy that focuses on investment trends. The
strategy invests in listed equity securities in both developed and emerging markets. Trends are
identified and validated using novel concepts from network theory that are applied to analyze the
microeconomic environment of companies. The team maintains a dynamic list of trends and a
proprietary trend-based stock classification system to this end.
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 returns of the individual portfolios within the composite are
time-weighted, 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 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 returns are reported net of foreign withholding
taxes on dividends, interest and capital gains. The composite returns presented represent past
performance which is not a reliable indicator of future results, which may vary.
Benchmark Information
The MSCI All Country World Index (ACWI) net is a free float-adjusted market capitalization index
that is designed to measure equity market performance in the global developed and emerging
markets. The Index is compiled by Morgan Stanley Capital International.
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 April 2012.
Calendar
QTD
YTD
2013
Dec 11 –
2012 Dec 11 2010
Lazard Rate of Return (%; Gross of Fees)
3.63
4.50
21.14
14.82
-3.22
Lazard Rate of Return (%; Net of Fees)
3.45
4.15
20.32
14.08
-3.30
Benchmark (%; Rate of Return)
5.04
6.18
22.80
16.13
Composite Standard Deviation (3-yr. Ann.)
—
—
Benchmark Standard Deviation (3-yr. Ann.)
—
# of Portfolios
2
Annualized
2009
2008
2007
2006
2005
2004
1 YR
3 YR
5 YR
10 YR
Since
Inception
—
—
—
—
—
—
—
25.05
—
—
—
14.12
—
—
—
—
—
—
—
24.28
—
—
—
13.36
-0.20
—
—
—
—
—
—
—
22.95
—
—
—
17.33
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2
2
1
—
—
—
—
—
—
—
Composite Dispersion (Asset Wtd. Std. Dev.)
0.27
0.04
0.19
N/A
—
—
—
—
—
—
—
Composite Assets (USD Millions)
87.5
117.0
98.1
10.0
—
—
—
—
—
—
—
Total Firm Assets (USD Billions)
177.4
161.6
148.3
124.4
—
—
—
—
—
—
—
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.