Lazard European Smaller Companies B

A pan-European smaller companies fund that adopts a value bottom up investment style.

  • 682.95p
    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.

  • -
    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).

  • 1.55%
    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.

  • 0.60%
    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 02 December 2020, fund data last updated 28 February 2003

Fund summary

Sector European Smaller Companies
Structure OEIC
Launched October, 2007
Size £212m
Yield 0.60%
Charging basis
Dividends paid Acc units only

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 1.55%

Allocation

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Investment process

The objective is long-term capital growth by investing in European smaller companies, those being companies with a market capitalisation of below €2 billion. This is approximately the bottom 5% of the MSCI Europe. The manager takes a bottom up value approach to investing, focusing on companies with high cash flows and high returns on equity. A team of analysts, spread through the world perform the individual company research and feed their "best" ideas back to fund manager for inclusion into the portfolio. If a superior idea is found by an analyst to an existing holding then it will be exchanged. Price targets are also set for each stock on an earnings multiple basis.

Manager research

Average monthly relative returns

  • 15/16 0.44%
  • 16/17 0.88%
  • 17/18 -0.46%
  • 18/19 -0.07%
  • 19/20 0.10%

Bestinvest MRI

  • 3 years -0.15%
  • 5 years 0.18%
  • Career 0.22%
  • 3 years 38.20%
  • 5 years 88.50%
  • Career 97.50%

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

Edward Rosenfeld

Rosenfeld is a Portfolio Manager/Analyst on the Global, International, and European Small Cap Equity teams. He began working in the investment industry in 1996. Prior to joining Lazard in 2001, He was an analyst with J.P. Morgan. He has an MBA from the University of Chicago and a BA from Columbia College.

Track record

Edward Rosenfeld has 7.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.22%. During the worst period of relative performance (from November 2017 - February 2020) there was a decline of 10% relative to the index. The worst absolute loss has been 27%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 98%.

Periods of worst performance

Absolute -27.00% (July 2018 - March 2020)
Relative -10.00% (November 2017 - 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 July 2020

2.2% Flatex
2.2% Karnov Group Ab (Publ)
2.1% Dermapharm Hldg Se
2.1% Royal Unibrew A/S
2% Jtc Plc
1.9% Volution Group Plc
1.8% Shurgard Self Storage Sa
1.8% Tecnoinvestimenti Spa
1.8% Jost Werke Ag
1.7% Asm International Nv
Source: Trustnet

Sector breakdown

Industrials 21.00%
Financials 15.00%
Real Estate 12.00%
Health Care 12.00%
Communications 11.00%
Information Technology 8.00%
Consumer Discretionary 6.00%
Materials 5.00%
Others 5.00%
Utilities 5.00%

Portfolio

The fund contains around 60 stocks with the top 10 accounting for 25% of the portfolio.

Constraints

There is a 5% maximum holding size at the stock level but there are no constraints on the sector or country weightings.

Key Investor Information

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