Lazard Asset Management’s new Global Equity ‘Franchise’ Fund ‘Recommended’ by Researcher
Lazard Asset Management’s new global equity fund, the Lazard Global Equity Franchise Fund has received a ‘recommended’ status from independent research house Zenith Investment Partners, following its inaugural review.
Since its inception in October 2013, the Fund has returned 24.60% annualised (net of fees) versus the MSCI World return of 19.67% over the same period.[1]
The Fund invests in listed companies, globally, that the team consider have an ‘economic’ franchise’, meaning companies which they believe possess a combination of predictable earnings and large competitive advantages. The Fund invests in 25-50 companies.
It aims to be a lower risk global equity option by only investing in companies that the team believes have reliable or forecastable earnings. It does not generally invest in banks, resources or tobacco stocks. The team believes that revenues of banks and resources are inherently more unpredictable and therefore the antithesis of an economic franchise.
Sydney-based Warryn Robertson, who is one of the Portfolio Manager/Analysts for the Fund said: “We seek to reduce uncertainty in equity markets by only investing in companies that have historically shown higher earnings certainty. This predictability means they should be easier to forecast and therefore less likely to have the negative events that diminish shareholder value.”
Susan Roberts, Chief Executive Officer of Lazard Asset Management Pacific Co said: “This Fund is intended for Australian investors who wish to allocate to global equities but do so through what we believe is a lower risk option. The exclusion of banks and resources stocks makes this Fund particularly appealing from a diversification point of view.”
This Fund will be managed by the same team of portfolio managers and analysts that already run the highly successful Lazard Global Listed Infrastructure Equity Fund which has a strong ten-year track record.
The team, including Bertrand Cliquet, Matthew Landy, John Mulquiney, Warryn Robertson and Anthony Rohrlach are located in London, New York and Sydney and draw on the experience and expertise of over 250 Lazard investment professionals worldwide.
Lazard Asset Management offers a range of equity, fixed-income, and alternative investment products worldwide. As of 30 September 2015, Lazard Asset Management and its affiliated asset management companies in the Lazard Group managed A$234 billion of client assets.[2]
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