Lazard Emerging Markets B

A globally diversified emerging market fund.

  • 213.63p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 258.06p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 3.75% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 1.50%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.58%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 2.30%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 30 March 2020, 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 £771m
Yield 2.30%
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

  • 15/16 -0.11%
  • 16/17 0.39%
  • 17/18 -0.53%
  • 18/19 -0.41%
  • 19/20 -0.45%

Bestinvest MRI

  • 3 years -0.46%
  • 5 years -0.22%
  • Career -0.02%
  • 3 years 8.90%
  • 5 years 25.10%
  • Career 78.50%

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 19 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.02%. During the worst period of relative performance (from August 2008 - February 2020) there was a decline of 22% relative to the index. The worst absolute loss has been 40%.

Periods of worst performance

Absolute -40.00% (May 2008 - November 2008)
Relative -22.00% (August 2008 - February 2020)

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.

Allocation

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Top 10 holdings

Data accurate as at 31 January 2020

5.1% Samsung Electronics Co
4.9% China Construction Bank
3.5% Sk Hynix Inc
3.1% Sberbank Of Russia
3% China Mobile Ltd
2.9% Banco Do Brasil
2.4% America Movil Sab De Cv
2.3% Taiwan Semiconductor Manufacturing
2.2% Cnooc
2.1% Otp Bank
Source: Trustnet

Sector breakdown

Financials 28.00%
Information Technology 20.00%
Communications 13.00%
Energy 10.00%
Materials 7.00%
Consumer Staples 6.00%
Industrials 6.00%
Consumer Discretionary 6.00%
Money Market 3.00%
Health Care 2.00%

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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