Lazard Emerging Markets B

A globally diversified emerging market fund.

  • 277.42p Price (Inc)
  • 335.10p Price (Acc)
  • 3.75% 0.00% Initial charge
  • 1.50% Annual management charge
  • 1.58% Ongoing charges
  • 1.90% Yield

Prices as at 06 December 2019, fund data last updated 04 September 2013

The fund aims to achieve long term capital growth by investing in global emerging market equities. It is managed by James Donald and the Lazard emerging markets team, led by Donald since 2001.

Fund summary

Sector Global Emerging Markets
Structure OEIC
Launched September, 1999
Size £820m
Yield 1.90%
Charging basis Capital
Dividends paid 31 May, 30 Nov

Charges

Standard initial charge 3.75%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.50%
Ongoing charges figure 1.58%

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Investment process

The proprietary value team-based approach is used to find undervalued stocks. Sector-relevant screens are performed to narrow down the initial universe of around 1,700 stocks with the market capitalisation of over $300 million, where return on equity (ROE) being one of the primary screen factors. Companies' earnings within this universe are normalised to enable comparison of financials of companies with different accounting practices. Financials are modelled three years ahead to determine an initial target price, then discounted for political risk (20% weight), portfolio risk (20%), corporate governance risk (40%) and macro risk (20%) and target price for each stock is set. The manager James Donald looks for a minimum of 25% upside to the fair value of a stock to be considered for the final portfolio. Stocks within the portfolio are weighted according to their upside to fair value rather than an active weight against the benchmark. The manager and his team are stock pickers and they tend to avoid companies with sub-par balance sheets or companies not reinvesting their profits.

Manager research

Average monthly relative returns

  • 14/15 -0.66%
  • 15/16 0.47%
  • 16/17 -0.43%
  • 17/18 -0.63%
  • 18/19 0.18%

Bestinvest MRI

  • 3 years -0.29%
  • 5 years -0.21%
  • Career 0.00%
  • 3 years 21.20%
  • 5 years 25.80%
  • Career 84.10%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

James Donald

Donald is a portfolio manager responsible for emerging markets equity portfolios. He has been working in the investment field since 1985. Prior to joining Lazard in 1996, he was a vice president on the emerging markets team at Mercury Asset Management. Previously, he was a vice president of marketing at the same firm. He holds the CFA designation and received a BA (Hons) degree in History from the University of Western Ontario. Donald is fluent in French and is based in New York.

Track record

James Donald has 18.6 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -00%. During the worst period of relative performance (from August 2008 - August 2018) there was a decline of 21% relative to the index. The worst absolute loss has been 40%.

Periods of worst performance

Absolute -40.00% (May 2008 - November 2008)
Relative -21.00% (August 2008 - August 2018)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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Top 10 holdings

Data accurate as at 31 August 2019

5% China Construction Bank
4.2% Samsung Electronics Co
3.1% Banco Do Brasil
3% Netease Inc
3% Sk Hynix Inc
2.9% Sberbank Of Russia
2.9% Taiwan Semiconductor Manufacturing
2.2% America Movil Sab De Cv
2% Bank Mandiri(Persero)
2% Tata Consultancy Services
Source: Trustnet

Sector breakdown

Financials 28.00%
Information Technology 20.00%
Communications 13.00%
Energy 9.00%
Materials 7.00%
Consumer Discretionary 6.00%
Consumer Staples 6.00%
Industrials 6.00%
Money Market 4.00%
Utilities 1.00%

Portfolio

70-90 stocks. The fund does not invest in companies with a market cap >$300m although typically most holdings are larger than this.

Constraints

All countries and sectors can be zero weighted. Portfolio companies must derive 50% of their net assets and /or sales from emerging markets countries.

Key Investor Information - Income

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Key Investor Information - Accumulation

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