Lazard Emerging Markets Equity Portfolio

Scorecard
4 / 5 Stars
Lipper
5 5 1 4 1
Zacks Investment Research
5 (Strong Sell)
Standard & Poor's
4 / 5 Stars
TheStreet.com
E+ (Sell)

#40 in Diversified Emerging Mkts

U.S. News evaluated 202 Diversified Emerging Mkts Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

See all Lazard funds

See full Diversified Emerging Mkts rankings

See more fund rankings

Performance

The fund has returned -7.78 percent over the past year, -0.06 percent over the past three years, 17.93 percent over the past five years, and 11.89 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date -5.9%
1 Year -7.8%
3 Years (Annualized) -0.1%
5 Years (Annualized) 17.9%
10 Years (Annualized) 11.9%

See more LZEMX performance

Summary

The Lazard Emerging Markets Equity Portfolio fund has performed strongly by picking undervalued stocks of companies based in a wide swath of emerging-market countries.

As of March 05, 2014, the fund has assets totaling $13.75 billion. Its portfolio consists of common stocks in non-U.S. companies whose activities are located in emerging-market countries.

The fund had a banner 2009, primarily because of the soaring performances of emerging markets after the financial market bottomed in March 2009. In its filing in March, management says that their stock selection in financials, materials, and energy, as well as within Brazil and South Africa has added value, while some telecom holdings detracted from the fund's overall performance. The fund has returned -7.78 percent over the past year and -0.06 percent over the past three years.

This fund differs from typical emerging-market funds by underweighting China, the focus of many other emerging-market funds, and heavily overweighting South Africa and Turkey. The fund has had top-quartile returns for Morningstar's three-, five- and 10-year periods. The fund has returned 17.93 percent over the past five years and 11.89 percent over the past decade.

Investment Strategy

Normally, the fund's management invests at least 80 percent of its assets in stocks of companies it believes are undervalued, based on their earnings, cash flow, and asset values, and whose primary business activities are located in emerging-market countries. Emerging-market countries include all of those in the MSCI Emerging Markets Index.

Role in Portfolio

Morningstar calls this a specialty holding, saying, "Like all emerging-markets offerings, this fund's potential for volatility is too great for the fund to play a large part in a core portfolio."

Management

James Donald is in charge of the day-to-day management of the fund, which he has comanaged since 2001. Donald joined Lazard Asset Management as an analyst in 1996. Comanager John Reinsberg, who has worked with the fund since 1994, oversees the fund's international strategies. Reinsberg started his career at Lazard Asset Management in 1992. Erik McKee and Rohit Chopra joined as comanagers in 2007 and 2008 respectively. The managers also work with several Lazard analysts in the United States and foreign countries.

Fees

Lazard Emerging Markets Equity Portfolio has an expense ratio of 1.10 percent.

See more LZEMX fees

Risk

Just like other emerging-market funds, this fund could suffer from extreme volatility and losses. The performance of the fund can be influenced by political, economic, and social factors that affect companies in emerging-market countries. These emerging-market countries tend to have political systems that are less stable and economic systems that are less diverse and mature than those of developed countries.

See more LZEMX risk