Download - City of Naples 3.31.15 FINAL
City of Naples General Employees’, Police, & Firefighters’ Retirement System
Lazard International Equity Select Plus ADR (ACW ex-US)
This presentation and all research and materials enclosed are property of Lazard Asset Management LLC. © 2015 Lazard Asset Management LLCInformation and opinions presented have been obtained or derived from sources believed by Lazard to be reliable. Lazard makes no representation as to their accuracy or completeness. All opinions expressed herein are as of the date of this presentation and are subject to change. This material is for informational purposes only. It is not intended to, and does not constitute financial advice, fund management services, an offer of financial products or to enter into any contract or investment agreement in respect of any product offered by Lazard Asset Management and shall not be considered as an offer or solicitation with respect to any product, security, or service in any jurisdiction or in any circumstances in which such offer or solicitation is unlawful or unauthorized or otherwise restricted or prohibited.Please refer to the Important Information section for additional information about risks.
April 30, 2015
Michael PowersManaging Director, Portfolio Manager/Analyst
1 Lazard Asset Management
Table of Contents
I. Firm Overview, Investment Process, Philosophy and Objectives
II. Market Overview & Portfolio Review
III. Outlook
IV. Emerging Markets Equity Portfolio
V. Summary
VI. Appendix
− Biographies− Disclosures
TABTAB
3 Lazard Asset Management
Lazard Asset Management
1 As of 31 December 2014. Includes those of Lazard Asset Management LLC (New York) and its affiliates, but do not include those of Lazard Frères Gestion (Paris) or other asset management businesses of Lazard Ltd.
NORTH AMERICABostonChicagoMontrealNew YorkRadnorSan FranciscoToronto
EUROPEDublin
FrankfurtHamburg
LondonMilan
Zurich
Hong KongSeoul SingaporeSydneyTokyoASIA PACIFIC
DubaiManama
MIDDLE EAST
1848 700+ 300+ 14 $178.4Lazard Founded Employees1 Investment Personnel Countries Billion AUM1
4 Lazard Asset Management4 Lazard Asset Management
Assets Under Management
1 As of 31 December 2014. Assets under management include those of Lazard Asset Management LLC (New York) and its affiliates, but do not include those of Lazard Frères Gestion(Paris) or other asset management businesses of Lazard Ltd.
2 Other represents clients invested in hedge funds, mutual funds, and other investment vehicles for which client type is not reported.
By Client Type By Investment Mandate
Global Equity17.3%
International Equity19.5%
Emerging Markets Equity
27.2%European
Equity2.8%
Asia-Pacific Equity4.7%
US Equity10.4%
Fixed Income13.4%
Balanced/ GTAA2.3%
Alternatives2.2% Other²
0.2%
Corporate40.2%
Insurance1.7%
Public/ Government
25.0%
Labor/Taft-Hartley4.5%
Endowments & Foundations
3.7%
Individual6.5%
Other²18.4%
Total Firm Assets Under Management1: US$178.4 billionTotal Firm Assets Under Management1: US$178.4 billion
5 Lazard Asset Management5 Lazard Asset Management
Global/International EquityAssets Under Management
As of 31 December 2014
Global Thematic Equity$15.6
Global Equity $11.5
Global Listed Infrastructure$7.0
International Equity $34.7
Emerging Markets Equity$48.5
European Equity $3.1
UK Equity $2.1
Australian Equity $3.6
Japanese Equity$4.2 Korean Equity
$0.3
Asian Equity $0.2
Lazard Global/International Equity Assets (in US$ billions)
Total Global/International Equity Assets:$130.7 billion; 73% of Total Firm AssetsTotal Global/International Equity Assets:$130.7 billion; 73% of Total Firm Assets
6 Lazard Asset Management
Local Focus, Global LeverageIntegrated Knowledge on a Global Scale
7 Lazard Asset Management7 Lazard Asset Management
Regional ExpertiseLazard Equity Investment Resources
As of 31 December 2014.1 Due to the nature of their activities, these individuals appear among both equity and fixed income resources.2 Due to the nature of their responsibilities, these individuals have been assigned more than one primary regional focus.
Multi-regional (Global / EAFE)Eduardo AbreuLee Ann AlexandrakisNigel BarrettMichael BennettDavid Bliss Nicholas BrattIrene ChengAdrian CheungBertrand CliquetKun DengJames Donald²Laurent DouilletYury Dubrovsky1
Beatrix Eisenblaetter
Robert FaillaSara FischerMartin FloodLouis Florentin-Lee Steven FockensMichael FryGautam GargChristopher HartungRupert Hope Peter HunsbergerTaras IvanenkoJai JacobRobin JonesPeter Kashanek
Edward KeatingTjeert KeijzerJohn King Kipp KjeldgaardAntony KnepChristopher KomosaWerner KraemerAndrew Lacey² Alex Lai Matthew LandyJay LeuppMark Little
Jean-Daniel Malan Stephen MarraKevin MatthewsThomas McManusNeil Millar Paul MoghtaderAndrei MorosanuJonathan MorrisJohn MulquineyDennis NevelingAndrew Norris Hubert Parzecki
Michael Per Christopher Pope Michael Powers Ragavan RamsubramaniJohn ReinsbergJessica RennieGiuseppe Ricotta Anthony RohrlachDavid RoncoEdward RosenfeldPatrick Ryan Guillaume SamamaCraig Scholl
Ulrich SchweigerJohn SciarraStephen ScottVictoire SpahnJeremy TaylorRonald Temple² Tycho van WijkYann VasseurKyle WaldhauerBarnaby WilsonSteve WrefordMing Zhong
USDmitri BatsevFrank Bianco1
Christopher BlakeDaniel BreslinRhett BrownGary BuesserZoe Chen1
James DalyMichael DeBernardisMartin FloodSarah GeorgeMiriam KimStephen (Kelly) KnybelEugene KrishnanAndrew Lacey2
Jerry Liu
Bret MillerAdam MitchellSritharan Nadesan1
Prateek Pant1David PizzimentiChristian ReddySean Reynolds1
Henry (Ross) SeidenChristopher Sferruzzo1
Nicholas SordoniFrank SustersicRonald Temple2
Richard TutinoChristopher WhitneyDouglas Workman1
EuropeAaron BarnfatherPatricia BiggersChristian BockrisJelena BoskovicElias ChrysostomouAlan CliffordNathan CockrellAlan CustisGiles Edwards
Marina Erskine-LeacockAlistair GodrichCiprian MarinDaniel RozierGuillaume SamamaPaul Selvey-ClintonLaura Somers-EdgarLloyd WhitworthJason WilliamsSusanne WillumsenBarnaby Wilson
Asia-PacificThurl AbrahamsMatthew BillsAaron BinstedNeal DoyingTimothy GriffenPhillip HofflinTakako HoshinoAndrew Il-Kweon DongKaitlyn (Aekyung) KimSe Hoon Kim
Ario KishidaJake (Jaeyub) MyungTakayuki NatsumeRob OsbornWarryn RobertsonKay (Kiseok) SeongPhilippe TisonGun WooShuichi YoshimuraTim Zhao
Emerging MarketsSleiman (Sam) Aboul HosnFadi Al SaidJagdish BathijaGeorg BenesSudip BiswasThomas BoyleMyung Hwan (Paul) Choi
Rohit ChopraElizabeth ChungMyla CruzJames Donald²Lada EmelianovaDonald FloydPeter Gillespie
Mostafa HassanXe (Harry) HeRobert HortonAlex InghamMark LienJohn MarianoErik McKee
Jacob (Ryan) MimsWalid MouradTalal NoueihedKevin O'HarePaul RogersStephen Russell
Rahwa SenayAnmol SethyMonika ShresthaAshish Shrivastava
Manish SinghaiSookyum WooBen WulfsohnVernon Yu
8 Lazard Asset Management8 Lazard Asset Management
Sector ExpertiseLazard Equity Investment Resources
As of 31 December 2014.
ConsumerAaron BinstedChristopher BlakeThomas BoyleRohit ChopraElizabeth ChungNathan CockrellMyla CruzMarina Erskine-LeacockRobert HortonStephen (Kelly) KnybelJerry LiuJake (Jaeyub) MyungDennis NevelingRob OsbornSookyum (Celine) WooShuichi Yoshimura
FinancialsNigel BarrettDmitri BatsevDaniel BreslinAdrian CheungElias ChrysostomouGuatam GargPhillip HofflinKaitlyn (Aekyung) KimMiriam KimAnthony KnepJay LeuppMark LienJonathan MorrisDavid RoncoStephen RussellGuillaume SamamaRahwa SenayMonika ShresthaRonald TempleVernon Yu
Health CareThurl AbrahamsJelena BoskovicRhett BrownJohn MarianoHenry (Ross) SeidenNicholas Sordoni
IndustrialsMatthew BillsMyung Hwan (Paul) ChoiMichael DeBernardisLada EmelianovaPeter GillespieSe Hoon KimKevin MatthewsErik McKeeAndrei MorosanuDavid PizzimentiRagavan RamsubramaniDaniel RozierKay (Kiseok) SeongVictoire SpahnPhilippe Tison
PowerGeorg BenesBertrand CliquetJames DonaldAlistair GodrichAndrew Il-Kweon DongXe (Harry) HePeter HunsbergerEugene KrishnanMatthew LandyNeil MillarJacob (Ryan) MimsJohn MulquineyWarryn RobertsonAnthony RohrlachBen Wulfsohn
Technology, Media, Telecom
Sudip BiswasLaurent DouilletGiles EdwardsDonald FloydAlex InghamArio KishidaBret MillerTakayuki NatsumeKevin O'HarePaul RogersManish SinghaiJeremy TaylorChristopher WhitneyGun WooTim Zhao
9 Lazard Asset Management
JoinedLazard
Years in Industry
Michael G. FryManaging Director,Portfolio Manager/Analyst
2005 34
Michael BennettManaging Director,Portfolio Manager/Analyst 1992 29
Kevin J. Matthews, CFAManaging Director, Portfolio Manager/Analyst
2001 14
Michael PowersManaging Director,Portfolio Manager/Analyst 1990 25
Portfolio ManagementLazard International Equity SelectPortfolio Management Team
Team membership is current as of the date of this document. Personnel data are calculated as of year-end 2014; YTD 2015 experience/tenure is not reflected
Investment Resources
As of 31 March 2015
Years in Industry
Years at Lazard
Years in Industry
Years at Lazard
Thurl Abrahams 17 11 Robert Horton 22 4Eduardo Abreu 10 7 Peter Hunsberger 26 23Lee Ann Alexandrakis 19 16 Robin Jones 13 11Aaron Barnfather 21 7 Mark Lien 25 6Nigel Barrett 26 8 Mark Little 23 17Ardra Belitz 21 19 Jean-Daniel Malan 17 13Georg Benes 14 14 John Mariano 17 4Patricia Biggers 23 11 Erik McKee 19 15Aaron Binsted 13 13 Neil Millar 9 8Jelena Boskovic 8 5 Andrei Morosanu 16 15Thomas Boyle 18 5 Jonathan Morris 26 6Rhett Brown 19 10 Dennis Neveling 9 8Paul Choi 15 2 Kevin O'Hare 24 13Rohit Chopra 19 16 Rob Osborn 30 15Elias Chrysostomou 13 5 David Pizzimenti 28 13Elizabeth Chung 21 5 Ganesh Ramachandran 18 17Alan Clifford 26 13 John Reinsberg 34 22Bertrand Cliquet 16 11 Warryn Robertson 23 13Nathan Cockrell 20 8 Paul Rogers 30 3Myla Cruz 7 7 Edward Rosenfeld 19 13Alan Custis 28 11 Daniel Rozier 4 3Kun Deng 21 18 Stephen Russell 18 3James Donald 32 19 Guillaume Samama 5 4Neal Doying 26 9 John Sciarra 9 8Giles Edwards 7 7 Paul Selvey-Clinton 9 0Lada Emelianova 17 5 Rahwa Senay 17 6Marina Erskine-Leacock 14 11 Monika Shrestha 18 11Robert Failla 22 12 Manish Singhai 22 2Louis Florentin-Lee 19 11 Victoire Spahn 8 4Donald Floyd 20 4 Jeremy Taylor 19 11Steven Fockens 24 3 Philippe Tison 32 15Peter Gillespie 23 8 Christopher Whitney 17 16Alistair Godrich 7 7 Lloyd Whitworth 24 5Timothy Griffen 29 10 Barnaby Wilson 17 15Mostafa Hassan 20 9 Sookyum (Celine) Woo 11 4Phillip Hofflin 20 16 Ben Wulfsohn 24 13
10 Lazard Asset Management
Investment Philosophy, Objectives and Process
Our Investment Philosophy Focus on those companies that are financially
productive and inexpensively valued
Add value through stock selection and portfolio management
Our Investment Objectives Outperform relevant benchmark over a full market
cycle
Participate in rising markets; preserve capital in falling markets
Outperform our investment competitors
Seek consistent results
Our Investment Process
PortfolioConstruction
IdeaSourcing
FundamentalAnalysis
Extensive Company Research
Risk/Reward Analysis
PortfolioConstruction
IdeaSourcing
FundamentalAnalysis
Extensive Company Research
Risk/Reward Analysis
Lazard’s investment process for research and portfolio construction is presented here as sequential steps; in practice the process is neither static, nor sequential, but ongoing.
Lazard's investment process is presented here in sequential steps for illustrative purposes only. In practice, the process is not sequential and will, as needed, weigh certain criteria over others.
TABTAB
12 Lazard Asset Management
Market Summary
Information and opinions as of 31 March 2015 and are subject to change. The indices listed above are unmanaged and have no fees. It is not possible to invest in an index. The performance quoted represents past performance. Past performance is not a reliable indicator of future results.Source: Lazard, MSCI
Outlook• Company earnings yet to catch up with international market rally
• Markets being helped by easy monetary policy, lower commodity prices, and weak currencies
• Mitigated macro uncertainty by avoiding large directional bets and focusing on relative value ideas
1Q2015• International markets trounced US even in $ terms• Signs of economic life emerged in Europe and Japan• Cyclicals ex-commodities led the way• EM continued to lag in cheap sectors, countries
• MSCI EAFE +4.9% (Local: +10.8%)• MSCI ACW ex-US +3.5% (Local: +8.9%)
13 Lazard Asset Management
Market Summary
Information and opinions as of 31 December 2014 and are subject to change. The indices listed above are unmanaged and have no fees. It is not possible to invest in an index. The performance quoted represents past performance. Past performance is not a reliable indicator of future results.Source: Lazard, MSCI
Outlook• Company earnings yet to catch up with 2013/2014 price moves
• Financially productive companies should prevail
• Relatively low exposure to riskier areas
• Market weakness could provide new value opportunities
• Mitigated macro uncertainty by avoiding large directional bets and focusing on relative value ideas
2014• After a strong 2013, International markets continued higher despite risks• However, local gains turned to $ losses due to very weak 2H currencies• EM rebounded from its February lows but weak currencies also turned gains to losses
• MSCI EAFE -4.9% (Local: +5.9%)• MSCI ACWI ex-US -3.9% (Local: +6.0%)
• US at record levels
14 Lazard Asset Management
Market Performance (Local Currency) – 2015Q1
MSCI ACWI ex-US Sector Performance MSCI Country Performance1
As of 31 March 2015. All data is shown in local currency.1 The performance shown is that of various MSCI country indices, but is not representative of all the countries that make up the MSCI ACWI.The performance quoted represents past performance. Past performance is not a reliable indicator of future results.For illustrative purposes only. This information is not representative of any product or strategy managed by Lazard. The index is unmanaged and has no fees. One cannot invest directly in an index. Source: MSCI
1.9
1.9
7.1
7.7
7.9
8.9
9.6
10.2
10.5
12.6
15.2
-15 -10 -5 0 5 10 15 20 25
Utilities
Energy
Telecom Services
Materials
Financials
MSCI ACWI ex-US
Consumer Staples
Industrials
Information Technology
Consumer Discretionary
Health Care
%Return %Return
-20.41.21.52.42.42.62.74.04.54.95.36.0
8.18.99.910.210.410.811.311.612.0
15.515.715.916.216.718.018.219.420.420.922.0
30.9
-30 -20 -10 0 10 20 30 40
GreeceUSASingaporeNew ZealandSwitzerlandBrazilCanadaUnited KingdomIndiaMSCI Emerging MarketsSouth KoreaHong KongChinaMSCI ACWI ex-USNorwayJapanAustraliaMSCI EAFEIsraelMSCI EuropeSpainFinlandRussiaSwedenAustriaIrelandFranceNetherlandsBelgiumItalyPortugalGermanyDenmark
15 Lazard Asset Management
2.21.1
-0.3-1.4 -1.7
-3.4 -3.4-4.2 -4.6 -4.9 -5.3
-7.0 -7.6-8.4
-9.6
-11.3 -11.6
-16.9
-20
-15
-10
-5
0
5
Sw
iss
Fran
c
Taiw
anes
e D
olla
r
Japa
nese
Yen
MS
CI E
M C
urre
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Inde
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Sou
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n W
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Mex
ican
Pes
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Sin
gapo
re D
olla
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New
Zea
land
Dol
lar
Sou
th A
frica
n R
and
Brit
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Pou
nd
MS
CI E
AFE
Cur
renc
y In
dex
Aus
tralia
n D
olla
r
Nor
weg
ian
Kro
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Can
adia
n D
olla
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Swed
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Kro
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Eur
o
Dan
ish
Kro
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Bra
zilia
n R
eal
Foreign Currencies – 2015Q1
As of 31 March 2015Currencies presented constitute Bloomberg’s “Major Currencies” and versus USD.The MSCI EAFE Currency Index and the MSCI EM Currency Index sets the weights of each currency equal to the relevant weight in the MSCI EAFE Index and MSCI EM Index, respectively.The indices listed are unmanaged and have no fees. It is not possible to invest in an index. The performance quoted represents past performance. Past performance is not a reliable indicator of future results.Source: Bloomberg
(%)
16 Lazard Asset Management
-29.3-14.6
-6.0-1.9-1.8-1.0-0.6
1.22.22.32.53.13.13.53.53.64.34.74.74.94.95.25.45.96.06.87.38.18.38.910.2
15.818.6
-40 -30 -20 -10 0 10 20 30 40
GreeceBrazilCanadaSingaporeNew ZealandUnited KingdomSpainUSAMSCI Emerging MarketsNorwayFinlandAustraliaAustriaMSCI EuropeMSCI ACWI ex-USIrelandSouth KoreaFranceSwitzerlandMSCI EAFENetherlandsSwedenIndiaBelgiumHong KongItalyPortugalChinaGermanyIsraelJapanDenmarkRussia
Market Performance (US Dollar) – 2015Q1
MSCI ACWI ex-US Sector Performance MSCI Country Performance1
As of 31 March 20151 The performance shown is that of various MSCI country indices, but is not representative of all the countries that make up the MSCI ACWI.All performance presented in USDThe performance quoted represents past performance. Past performance is not a reliable indicator of future results.For illustrative purposes only. This information is not representative of any product or strategy managed by Lazard. The index is unmanaged and has no fees. One cannot invest directly in an index. Source: MSCI
-4.6
-4.1
1.5
1.6
2.1
3.5
3.9
4.6
7.2
7.7
10.3
-10 0 10 20
Utilities
Energy
Materials
Telecom Services
Financials
MSCI ACWI ex-US
Consumer Staples
Industrials
Consumer Discretionary
Information Technology
Health Care
%Return %Return
17 Lazard Asset Management
Market Performance (Local Currency) – 2014
MSCI ACWI ex-US Sector Performance MSCI Country Performance1
As of 31 December 2014. All data is shown in local currency1 The performance shown is that of various MSCI country indices, but is not representative of all the countries that make up the MSCI ACWI.The performance quoted represents past performance. Past performance is not a reliable indicator of future results.For illustrative purposes only. This information is not representative of any product or strategy managed by Lazard. The index is unmanaged and has no fees. One cannot invest directly in an index. Source: MSCI
-9.5
-3.6
4.7
6.0
6.3
6.8
7.5
7.9
13.7
14.0
19.1
-20 -10 0 10 20 30
Energy
Materials
Industrials
MSCI ACWI ex-US
Telecom Services
Financials
Consumer Discretionary
Consumer Staples
Utilities
Information Technology
Health Care
%Return %Return
-31.6-29.7
-20.0-12.8
-7.4-3.7-3.2
0.52.12.63.04.75.15.25.65.96.08.08.08.69.59.910.711.612.712.713.013.1
16.518.620.7
26.437.6
-40 -30 -20 -10 0 10 20 30 40 50
GreecePortugalAustriaRussiaSouth KoreaNorwayBrazilUnited KingdomGermanyFranceItalyMSCI EuropeHong KongMSCI Emerging MarketsAustraliaMSCI EAFEMSCI ACWI ex-USChinaSingaporeSpainJapanNetherlandsCanadaSwitzerlandSwedenUSANew ZealandFinlandIrelandBelgiumDenmarkIndiaIsrael
18 Lazard Asset Management
-3.8 -4.3 -4.7 -5.1-5.8 -5.9
-8.3 -8.6-9.3
-9.9 -10.2-11.1 -11.6 -11.8 -12.0 -12.1
-17.5-18.5
-20
-18
-16
-14
-12
-10
-8
-6
-4
-2
0
Sou
th K
orea
n W
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MS
CI E
M C
urre
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Inde
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Sin
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New
Zea
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Dol
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Taiw
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e D
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Brit
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Pou
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Aus
tralia
n D
olla
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Can
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n D
olla
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Sou
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frica
n R
and
MS
CI E
AFE
Cur
renc
y In
dex
Sw
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Fran
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Bra
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n R
eal
Mex
ican
Pes
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Dan
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Kro
ne
Eur
o
Japa
nese
Yen
Swed
ish
Kro
na
Nor
weg
ian
Kro
ne
Foreign Currencies – 2014
As of 31 December 2014Currencies presented constitute Bloomberg’s “Major Currencies.”The MSCI EAFE Currency Index and the MSCI EM Currency Index sets the weights of each currency equal to the relevant weight in the MSCI EAFE Index and MSCI EM Index, respectively.The indices listed are unmanaged and have no fees. It is not possible to invest in an index. The performance quoted represents past performance. Past performance is not a reliable indicator of future results.Source: Bloomberg
(%)
19 Lazard Asset Management
Market Performance (US Dollar) – 2014
MSCI ACWI ex-US Sector Performance MSCI Country Performance1
As of 31 December 20141 The performance shown is that of various MSCI country indices, but is not representative of all the countries that make up the MSCI ACWI.All performance presented in USDThe performance quoted represents past performance. Past performance is not a reliable indicator of future results.For illustrative purposes only. This information is not representative of any product or strategy managed by Lazard. The index is unmanaged and has no fees. One cannot invest directly in an index. Source: MSCI
-19.3
-13.1
-6.0
-3.9
-3.2
-3.1
-2.4
-1.9
3.5
4.9
7.2
-30 -20 -10 0 10 20
Energy
Materials
Industrials
MSCI ACWI ex-US
Telecom Services
Consumer Discretionary
Financials
Consumer Staples
Utilities
Information Technology
Health Care
%Return %Return
-46.3-40.0-38.2
-29.8-22.0
-14.0-11.1-10.4
-9.9-9.5-7.5-6.2-5.4-4.9-4.7-4.0-3.9-3.5-3.4-2.2-0.7-0.1
1.52.33.04.15.16.27.38.0
12.722.823.9
-60 -40 -20 0 20 40
RussiaGreecePortugalAustriaNorwayBrazilSouth KoreaGermanyFranceItalySwedenMSCI EuropeUnited KingdomMSCI EAFESpainJapanMSCI ACWI ex-USNetherlandsAustraliaMSCI Emerging MarketsFinlandSwitzerlandCanadaIrelandSingaporeBelgiumHong KongDenmarkNew ZealandChinaUSAIsraelIndia
20 Lazard Asset Management
City of Naples General Employees’ Retirement SystemPerformance Summary
Reporting Currency: US Dollar1 The benchmark is now a linked index consisting of the MSCI EAFE Index from inception through 3 April 2007 and the MSCI ACWI ex-US thereafter.Performance is presented gross of fees unless indicated otherwise. The performance quoted represents past performance. Past performance is not a reliable indicator of future results.
Annualized
2015Q1 1 Year 3 Year 5 Year 10 Year
Since Inception
(30 Nov 00)
City of Naples General Employees’ Retirement System 4.22 -2.09 6.93 6.68 5.85 5.23
Linked Index¹ 3.49 -1.02 6.40 4.81 5.22 4.51
Excess Returns (bps) +73 -107 +53 +187 +63 +72
Lazard Emerging Markets Equity Portfolio (Net) -1.92 -5.60 -0.92 1.68 9.20 12.01
MSCI Emerging Markets Index 2.24 0.44 0.31 1.75 8.48 10.54
Market Value % of Portfolio
Equity $ 1,834,991 75.9%
Lazard Emerging Markets Equity Portfolio $ 508,492 21.0%
Cash and Equivalents $ 75,832 3.1%
Total Portfolio $ 2,419,314 100.0%
Performance as of 31 March 2015 (%)
Portfolio Composition as of 31 March 2015
21 Lazard Asset Management
City of Naples Police Officers’ Retirement System Performance Summary
Annualized
2015Q1 1 Year 3 Year 5 Year 10 Year
Since Inception
(30 Nov 00)
City of Naples Police Officers’ Retirement System 4.21 -2.04 6.88 6.66 5.83 5.31
Linked Index¹ 3.49 -1.02 6.40 4.81 5.22 4.51
Excess Returns (bps) +72 -102 +48 +185 +61 +80
Lazard Emerging Markets Equity Portfolio (Net) -1.92 -5.60 -0.92 1.68 9.20 12.01
MSCI Emerging Markets Index 2.24 0.44 0.31 1.75 8.48 10.54
Market Value % of Portfolio
Equity $ 1,525,424 75.5%
Lazard Emerging Markets Equity Portfolio $ 425,171 21.1%
Cash and Equivalents $ 68,558 3.4%
Total Portfolio $ 2,019,154 100.0%
Performance as of 31 March 2015 (%)
Portfolio Composition as of 31 March 2015
Reporting Currency: US Dollar1 The benchmark is now a linked index consisting of the MSCI EAFE Index from inception through 3 April 2007 and the MSCI ACWI ex-US thereafter.Performance is presented gross of fees unless indicated otherwise. The performance quoted represents past performance. Past performance is not a reliable indicator of future results.
22 Lazard Asset Management
City of Naples Firefighters’ Retirement SystemPerformance Summary
Annualized
2015Q1 1 Year 3 Year 5 Year 10 Year
Since Inception
(30 Nov 00)
City of Naples Firefighters’ Retirement System 4.19 -2.05 6.92 6.69 5.80 5.31
Linked Index¹ 3.49 -1.02 6.40 4.81 5.22 4.51
Excess Returns (bps) +70 -103 +52 +188 +58 +80
Lazard Emerging Markets Equity Portfolio (Net) -1.92 -5.60 -0.92 1.68 9.20 12.01
MSCI Emerging Markets Index 2.24 0.44 0.31 1.75 8.48 10.54
Market Value % of Portfolio
Equity $ 1,680,743 75.8%
Lazard Emerging Markets Equity Portfolio $ 468,220 21.1%
Cash and Equivalents $ 68,845 3.1%
Total Portfolio $ 2,217,807 100.0%
Performance as of 31 March 2015 (%)
Portfolio Composition as of 31 March 2015
Reporting Currency: US Dollar1 The benchmark is now a linked index consisting of the MSCI EAFE Index from inception through 3 April 2007 and the MSCI ACWI ex-US thereafter.Performance is presented gross of fees unless indicated otherwise. The performance quoted represents past performance. Past performance is not a reliable indicator of future results.
23 Lazard Asset Management
Lazard International Equity Select ADRCapitalization Exposure History – 10 Years
As of 31 March 2015Please note that cash is not illustrated above. Cash is not viewed as a strategic asset.The allocations mentioned are based upon a portfolio that represents the proposed investment for a fully discretionary account. Allocations and security selection are subject to change. Source: Lazard
Historical Portfolio by Market Capitalization
(%)
0
10
20
30
40
Mar
-05
Jun-
05
Sep
-05
Dec
-05
Mar
-06
Jun-
06
Sep
-06
Dec
-06
Mar
-07
Jun-
07
Sep
-07
Dec
-07
Mar
-08
Jun-
08
Sep
-08
Dec
-08
Mar
-09
Jun-
09
Sep
-09
Dec
-09
Mar
-10
Jun-
10
Sep
-10
Dec
-10
Mar
-11
Jun-
11
Sep
-11
Dec
-11
Mar
-12
Jun-
12
Sep
-12
Dec
-12
Mar
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Jun-
13
Sep
-13
Dec
-13
Mar
-14
Jun-
14
Sep
-14
Dec
-14
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-15
$0-15 billion
24 Lazard Asset Management
AshteadAtlantiaBayerBG GroupBHP Billiton BNP Paribas Carlsberg Daiwa House InformaJapan Tobacco
KBCKDDI Komatsu KPNMediolanumNovartis PearsonRed ElectricaRogers
Royal Dutch ShellSignet SMFGSoftBankSumitomo Mitsui Trust ValeoVinciWolseleyWolters Kluwer
Lazard International Equity Select ADRIdentifying and Exploiting Market Inefficiencies
Mispricing
Compounders
International Equity
Select ADR
RestructuringActelionAnheuser-Busch InBevAssa AbloyAssociated British FoodsBMWBritish American TobaccoContinentalDaikinMakita Novo Nordisk NXP Semiconductors
PrudentialRichemontRyanairRyohin KeikakuSampoSands China Seven & I ShireSwatch Swedbank
Anglo AmericanFreseniusLloydsRexam
SonyTeva Pharmaceutical Unilever
As of 31 March 2015 Allocations and securities mentioned are based upon a portfolio which represents the proposed investments for a fully discretionary account. The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the portfolio or that securities sold have not been repurchased. The securities mentioned may not represent the entire portfolio.
25 Lazard Asset Management
Lazard International Equity Select ADR Purchases and Sales – 2015Q1
As of 31 March 2015Securities mentioned are based upon a portfolio which represents the proposed investments for a fully discretionary account and are subject to change. The securities identified are not necessarily held by Lazard Asset Management and should not be considered a recommendation or solicitation to purchase or sell these securities. It should not be assumed that any of the referenced securities were or will prove to be profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the account’s portfolio or that securities sold have not been repurchased. The securities discussed may not represent the account’s entire portfolio.
Sales
• Airbus
• Rolls-Royce
Purchases
• Continental
• KBC
• Pearson
• Sony
• VINCI
26 Lazard Asset Management
Portfolio DirectionSector and Regional Active Weights
As of 31 March 20151 Represents the Portfolio re-weighted excluding the Lazard Emerging Markets Equity Portfolio and cash. Cash is 3.2% of the representative portfolio.The allocations mentioned are based upon a portfolio that represents the proposed investment for a fully discretionary account. Allocations are subject to change. Source: Lazard, MSCI
Region31 Dec2014
31 Mar2015
YTD Change in Weight
Continental Europe 0.3 2.1 1.8
Japan 0.4 0.6 0.2
Middle East 2.1 2.3 0.2
Asia ex-Japan -6.8 -6.9 -0.1
North America -5.2 -5.7 -0.5
United Kingdom 5.8 4.9 -0.9
Emerging Markets 0.6 -0.6 -1.2
Cash & Equivalents 2.9 3.2 0.3
Sector131 Dec2014
31 Mar2015
YTD Change in Weight
Consumer Discretionary -0.7 1.4 2.1
Consumer Staples 3.3 4.4 1.1
Health Care 7.5 8.3 0.8
Financials -5.7 -4.9 0.8
Utilities -2.7 -2.1 0.6
Information Technology -3.6 -3.9 -0.3
Materials -3.7 -4.1 -0.4
Energy -2.4 -2.8 -0.4
Telecom Services 3.1 2.4 -0.7
Industrials 4.9 1.2 -3.7
International Equity Select Plus ADR (ACW ex-US) vs. MSCI ACWI ex-US
27 Lazard Asset Management
City of Naples General Employees’ Retirement SystemHoldings by Sector
As of 31 March 20151 Represents the Portfolio re-weighted excluding the Lazard Emerging Markets Equity Portfolio and cash. Cash is 3.1% of the portfolio.Allocations and security selection are subject to change. The information provided in this material should not be considered a recommendation or solicitation to purchase or sell any security. There is no assurance that any securities referenced herein will remain in the account’s portfolio or that securities sold have not been repurchased. The securities discussed may not represent the account’s entire portfolio. It should not be assumed that any of the referenced securities were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. Please note that cash is not viewed as a strategic asset class.Source: Lazard, MSCI
4.9
3.6
5.1
7.5
4.7
13.1
12.7
11.0
11.4
26.0
1.0
1.5
2.4
3.4
7.3
13.3
14.2
15.7
19.9
21.4
0 5 10 15 20 25 30
InformationTechnology
Utilities
Energy
Materials
Telecom Services
ConsumerDiscretionary
Industrials
ConsumerStaples
Health Care
Financials
(%)% of Portfolio¹% of MSCI EAFE Index
% of Portfolio
% of MSCI ACWI ex-US
Emerging Markets 21.0 21.5Lazard Emerging Markets Equity Portfolio (Instl)
% of Portfolio¹
% of MSCI EAFE Index
% of Portfolio¹
% of MSCI EAFE Index
Consumer Health Care 19.9 11.4Discretionary 13.3 13.1 Actelion BMW Bayer Continental Fresenius Informa Novartis Pearson Novo Nordisk Richemont Shire Ryohin Keikaku Teva Pharmaceutical Sands China Industrials 14.2 12.7Sony Ashtead Swatch Assa AbloyValeo Atlantia Wolters Kluwer Daikin Consumer Staples 15.7 11.0 Komatsu Anheuser-Busch InBev Makita Associated British Foods Ryanair British American Tobacco Vinci Carlsberg Wolseley Japan Tobacco InformationSeven & I Technology 1.0 4.9Unilever NXP Semiconductors Energy 2.4 5.1 Materials 3.4 7.5BG Group Anglo American Royal Dutch Shell BHP Financials 21.4 26.0 Rexam BNP Paribas Telecom Services 7.3 4.7Daiwa House KDDI KBC KPNLloyds Rogers Mediolanum Softbank Prudential Utilities 1.5 3.6Sampo Red Electrica SMFG Total Portfolio 100.0 100.0Sumitomo Mitsui TrustSwedbank
28 Lazard Asset Management
City of Naples General Employees’ Retirement SystemHoldings by Country
As of 31 March 2015The information provided in this material should not be considered a recommendation or solicitation to purchase or sell any security. There is no assurance that any securities referenced herein will remain in the account’s portfolio or that securities sold have not been repurchased. The securities discussed may not represent the account’s entire portfolio. It should not be assumed that any of the referenced securities were or will prove to be profitable, or that the investment decisions we make in the future will be profitable. Please note that cash is not viewed as a strategic asset class.Source: Lazard, MSCI
0.0
8.6
21.5
6.8
15.9
0.4
14.2
32.5
3.1
1.8
21.0
0.5
16.8
2.8
18.3
35.8
0 25 50
Cash & Equivalents
Asia Pacific ex-Japan
Emerging Markets
North America
Japan
Middle East
United Kingdom
Continental Europe
% of Portfolio% of MSCI ACWI ex-US
% of Portfolio
% of MSCI ACWI ex-US
% of Portfolio
% of MSCI ACWI ex-US
% of Portfolio
% of MSCI ACWI ex-US
Australia 1.0 5.2 Japan 16.8 15.9 United Kingdom 18.3 14.2BHP Daikin Anglo American Austria 0.0 0.1 Daiwa House Ashtead Belgium 4.4 0.9 Japan Tobacco Associated British Foods Anheuser-Busch InBev KDDI BG Group KBC Komatsu British American Tobacco Canada 0.5 6.8 Makita Informa Rogers Ryohin Keikaku Lloyds Denmark 2.7 1.2 Seven & I Pearson Carlsberg SMFG PrudentialNovo Nordisk Softbank Rexam Finland 1.5 0.6 Sony Royal Dutch Shell Sampo Sumitomo Mitsui Trust ShireFrance 3.8 7.0 Netherlands 3.2 2.0 Unilever BNP Paribas KPN Wolseley Valeo NXP Semiconductors Total Developed 75.8 78.5Vinci Wolters Kluwer Emerging Markets 21.0 21.5Germany 5.6 6.8 New Zealand 0.0 0.1 Lazard Emerging Markets Equity Portfolio (Instl)Bayer Norway 0.0 0.5 Cash & Equivalents 3.1 0.0BMW Portugal 0.0 0.1 Total Portfolio 100.0 100.0Continental Singapore 0.0 1.0Fresenius Spain 1.1 2.6Hong Kong 0.7 2.3 Red Electrica Sands China Sweden 3.6 2.2Ireland 1.0 0.2 Assa Abloy Ryanair SwedbankIsrael 2.8 0.4 Switzerland 6.3 6.6Teva Pharmaceutical Actelion Italy 2.5 1.7 Novartis Atlantia RichemontMediolanum Swatch
TABTAB
30 Lazard Asset Management
Outlook• Modest growth re-appearing in Europe helped by weaker euro & commodities
• Positive structural change in Japan
• Geo-political risks remain: Russia, Middle East, Greece, etc.
• DM multiples may be vulnerable to earnings disappointment or external events
• EM valuations are attractive but ROE’s are declining
• Wide global valuation gap between high ROE and low ROE creates challenges and opportunities
• Central banks outside the U.S. remain accommodative
• Corporate balance sheets are in great shape (cash redeployment)
As of 31 March 2015 and subject to change.
Focus on stocks as macro, political, regulatory risks are difficult to quantifyFocus on stocks as macro, political, regulatory risks are difficult to quantify
31 Lazard Asset Management
Relative Value MSCI Regions
As of 31 March 20151 Forward Price/Earnings is defined as Price/Earnings FY1 and Forward Return on Equity as Return on Equity NTM.The figures above represent expected returns. Expected returns do not represent a promise or guarantee of future results and are subject to change. Source: Lazard, MSCI, I/B/E/S Consensus
Forward P/E1 Forward ROE (%)1 Dividend Yield (%)
EAFE 16.6 10.5 2.9
US 18.0 14.5 2.0
United Kingdom 15.7 12.0 3.8
Continental Europe 17.0 11.1 2.8
Asia 16.7 9.2 2.4
Japan 17.1 8.7 1.7
Emerging Markets 12.2 12.3 2.6
We believe the portfolio is well positioned where we see attractive relative value
32 Lazard Asset Management
Global Valuation
As of 31 March 2015Source: Source: Barclays Research, DataStream, MSCIPlease note that the MSCI World index is used to represent Global
0
5
10
15
20
25
30
35
40
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
Global PE Average
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
1975 1980 1985 1990 1995 2000 2005 2010 2015
Global PB Average
Valuations are in line with long-term averages
33 Lazard Asset Management
As of 14 April 2015Estimated or forecasted data are not a promise or guarantee of future results and are subject to change. Annual percentages of constant price GDP are year-on-year changes; the base year is country-specific.Source: IMF World Economic Outlook
Pockets of Global Growth
Japan: 1.0%US: 3.1%
Russia: -3.8%
China: 6.8%
India: 7.5%
Brazil: -1.0%
Euro Area: 1.5%
UK: 2.7%
Australia: 2.8%
Indonesia: 5.2%
Turkey: 3.1%
2015 Expected GDP Growth
S. Africa: 2.0%
34 Lazard Asset Management
Europe
Information and opinions as of 31 March 2015 and are subject to change.Mention of these securities should not be considered a recommendation or solicitation to purchase or sell the securities. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the portfolio or that securities sold have not been repurchased. The securities mentioned may not represent the entire portfolio.Source: ISI, Bloomberg, Markit
QE is devaluing currency but stimulating activity Weak euro is a boost to exporters, consumers and driving investment flows Improved manufacturing driven by Spain, Italy, Germany Bank lending has picked up UK valuation, growth, dividend yield remains attractive Important elections to come in U.K. and Spain Greece solution likely to be sensible Forward earnings need to justify higher share prices, valuations
Manufacturing PMI
30
35
40
45
50
55
60
Apr‐12
May‐12
Jun‐12
Jul‐1
2
Aug‐12
Sep‐12
Oct‐12
Nov
‐12
Dec‐12
Jan‐13
Feb‐13
Mar‐13
Apr‐13
May‐13
Jun‐13
Jul‐1
3
Aug‐13
Sep‐13
Oct‐13
Nov
‐13
Dec‐13
Jan‐14
Feb‐14
Mar‐14
Apr‐14
May‐14
Jun‐14
Jul‐1
4
Aug‐14
Sep‐14
Oct‐14
Nov
‐14
Dec‐14
Jan‐15
Feb‐15
Mar‐15
Spain Greece Germany UK France Expansion/Contraction
35 Lazard Asset Management
European Data has Turned Positive
As of 31 March 2015Source: Bloomberg, CitiThe Citi Economic Surprise Indices measure data surprises relative to market expectations. A positive reading means that data releases have been stronger than expected and a negative reading means that data releases have been worse than expected.
‐100
‐80
‐60
‐40
‐20
0
20
40
60
80
Mar‐14 Apr‐14 May‐14 Jun‐14 Jul‐14 Aug‐14 Sep‐14 Oct‐14 Nov‐14 Dec‐14 Jan‐15 Feb‐15 Mar‐15
Citigroup Economic Surprise Index ‐ Europe Citigroup Economic Surprise Index ‐ US
Europe
US
36 Lazard Asset Management
Japan
Information and opinions are as of 31 March 2015 and are subject to change.Mention of these securities should not be considered a recommendation or solicitation to purchase or sell the securities. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the portfolio or that securities sold have not been repurchased. The securities mentioned may not represent the entire portfolio.Source: Bloomberg, Japan Ministry of Finance (as of 31 Dec 2014)
Higher corporate profits aided by weak yen has led to wage increases Economic growth could benefit from resulting increase in spending Shareholder return is the new focus GPIF change in board structure and asset allocation mix Nikkei 400 Stewardship Code Corporate Governance Code New budget includes significant corporate tax cut Valuations are cheap vs history, and approaching non-US peers
70
90
110
130
150
170
0
5000
10000
15000
20000
Mar‐90
Dec‐90
Sep‐91
Jun‐92
Mar‐93
Dec‐93
Sep‐94
Jun‐95
Mar‐96
Dec‐96
Sep‐97
Jun‐98
Mar‐99
Dec‐99
Sep‐00
Jun‐01
Mar‐02
Dec‐02
Sep‐03
Jun‐04
Mar‐05
Dec‐05
Sep‐06
Jun‐07
Mar‐08
Dec‐08
Sep‐09
Jun‐10
Mar‐11
Dec‐11
Sep‐12
Jun‐13
Mar‐14
Dec‐14
Corp. Current Profits (JPY millions, s.a.) JPY per USD (rhs)
37 Lazard Asset Management
Improved Corporate Governance & Structural Reform Boosting ROE
As of 31 March 2015Source: Mizuho, LazardThe index listed above is unmanaged and has no fees. It is not possible to invest directly in an index. Not intended to represent any product or strategy managed by Lazard. Past performance is not a reliable indicator of future results
ROE approaching 25-year highROE approaching 25-year high
‐1.0%
1.0%
3.0%
5.0%
7.0%
9.0%
11.0%
13.0%
¥0
¥5
¥10
¥15
¥20
¥25
¥30
¥35
FY19
84
FY19
86
FY19
88
FY19
90
FY19
92
FY19
94
FY19
96
FY19
98
FY20
00
FY20
02
FY20
04
FY20
06
FY20
08
FY20
10
FY20
12
FY20
14
Billions
Net profit ROE (rhs)
TOPIX Index ex-Financials
38 Lazard Asset Management
Emerging Markets
Note: * Total return includes reinvested dividends. † Devaluation or other sharp currency drop.Source: Lazard, MSCIInformation and opinions are as of 31 March 2015 and are subject to change.Mention of these securities should not be considered a recommendation or solicitation to purchase or sell the securities. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the portfolio or that securities sold have not been repurchased. The securities mentioned may not represent the entire portfolio.
Headwinds are dominating the short term Slower growth / lower commodity prices Capex cycle driving ROEs lower Strong US$ Geo-politics
Tailwinds are the long-term opportunity Valuations at significant discount to DM Economic growth higher than DM Monetary / fiscal tools in place
2150
998
464
215
100
Mexicanpeso †
Thaibaht †
Russian crisis
Brazilianreal †
Turkishlira †
Argentinepeso †
Brazilian election turmoil
2nd Gulf War
Global credit crisis
Eurozone crisis
"Whateverit takes"
Tapertantrum
Ukrainecrisis
June fourthincident
Fall ofthe "Wall"
Kuwait invaded
Mexicanprivatizations NAFTA
Russianprivatizations GATT
'87 '90 '93 '96 '99 '02 '05 '08 '11 '14
MSCI Emerging Markets TR* index(USD 100=Dec. 87)
as of10 ‐Apr
2015
Annualized USD TR* since: Dec ‐ 11 .................. + 6.7 %Dec ‐ 09 .................. + 3.6 %Dec ‐ 07 .................. + 0.1 %Dec ‐ 02 ................ + 13.9 %Dec ‐ 98 ................ + 10.7 %
39 Lazard Asset Management
1
1.05
1.1
1.15
1.2
1.25
1.3
1.35
1.4
1.45
1.5
1.55
1.6
1.65
Mar‐05
Jun‐05
Sep‐05
Dec‐05
Mar‐06
Jun‐06
Sep‐06
Dec‐06
Mar‐07
Jun‐07
Sep‐07
Dec‐07
Mar‐08
Jun‐08
Sep‐08
Dec‐08
Mar‐09
Jun‐09
Sep‐09
Dec‐09
Mar‐10
Jun‐10
Sep‐10
Dec‐10
Mar‐11
Jun‐11
Sep‐11
Dec‐11
Mar‐12
Jun‐12
Sep‐12
Dec‐12
Mar‐13
Jun‐13
Sep‐13
Dec‐13
Mar‐14
Jun‐14
Sep‐14
Dec‐14
Mar‐15
US Dollar per Euro
US Dollar per Euro
Ten-year USD/EUR
As of 31 March 2015Source: Bloomberg
Euro has rebounded from low levels over the last 10 yearsEuro has rebounded from low levels over the last 10 years
40 Lazard Asset Management
Oil: A series of shocks
As of 31 March 2015Source: Factset, Bloomberg, Bureau of Labor StatisticsOil price is Brent Crude Oil Spot price in Feb 2015 US Dollars, inflation adjusted using the US CPI Urban Consumers Seasonally Adjusted Base Year 1982-84=100
Reversion to the mean
As of 31 Mar 2015
‐1 sd
Average
+1 sd
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
Dec‐70
Dec‐71
Dec‐72
Dec‐73
Dec‐74
Dec‐75
Dec‐76
Dec‐77
Dec‐78
Dec‐79
Dec‐80
Dec‐81
Dec‐82
Dec‐83
Dec‐84
Dec‐85
Dec‐86
Dec‐87
Dec‐88
Dec‐89
Dec‐90
Dec‐91
Dec‐92
Dec‐93
Dec‐94
Dec‐95
Dec‐96
Dec‐97
Dec‐98
Dec‐99
Dec‐00
Dec‐01
Dec‐02
Dec‐03
Dec‐04
Dec‐05
Dec‐06
Dec‐07
Dec‐08
Dec‐09
Dec‐10
Dec‐11
Dec‐12
Dec‐13
Dec‐14
Inflation Adjusted Brent ($/bbl)
+233%1 m
+161%18 m
-58%23 months
-70%9 m
+140%4 m
-50%5 m
-58%7 m
Demand (collapse)shock
1st Gulf War
Oil embargo -Supply driven
shock
Supply driven shock
-58%23 m
Supply driven shock Supply (pick-up)
shock
+116%19 m
-71%7 m
41 Lazard Asset Management
“Good” “Bad”
EU
US
Korea
Japan
India
China
OPEC
Norway
Chile
Australia
Canada
Indonesia
Brazil
Russia
Lower Commodity PricesNet Tailwind for Global Growth:
MSCI data as of 31 March 2015Source: Cornerstone Macro
19.4%
51.6%
2.4%
0.8%
7.7%
1.6%
0.1%
0.4%
0.8%
0.3%
3.3%
2.5%
0.1%
0.2%
Weight in MSCI ACWI Weight in MSCI ACWI
~85% of ACWI countries benefit from weaker prices~85% of ACWI countries benefit from weaker prices
42 Lazard Asset Management
3 Year Rolling Style Returns
+5
‐5
‐50
‐40
‐30
‐20
‐10
‐
10
20
30
40
50
Dec‐92
Dec‐94
Dec‐96
Dec‐98
Dec‐00
Dec‐02
Dec‐04
Dec‐06
Dec‐08
Dec‐10
Dec‐12
Dec‐14
Style factors have become less significantStyle factors have become less significant
Value Outperforms
Growth Outperforms
Value vs Growth
As of 31 March 2015Value is defined by S&P Developed ex-United States BMI Value Growth is defined by S&P Developed ex-United States BMI GrowthFor illustrative purposes only. The information is not representative of any product or strategy managed by Lazard. The indices are unmanaged have no fees. One cannot invest directly in an index.
Performance is based on rolling 36-month difference in price index returns. The performance quoted represents past performance. Past performance is not a reliable indicator of future results. Source: S&P
TABTAB
44 Lazard Asset Management
A Broad Range of ResourcesLazard Global Emerging Markets
31 December 2014This information represents the portfolio management team, and those serving in a dedicated relationship to the team.
James Donald
Monika Shrestha
Donald Floyd
Rohit Chopra
Lada Emelianova
Ben Wulfsohn
Jai Jacob
Steven Marra
Giuseppe Ricotta
Nitin Kumar
Tom McManus
Michael Per
Rupert Hope
Erianna
Khusainova
Chris Boyatt
Christian Frei
Chris Heasman
Paul Moghtader
Taras Ivanenko
Peter Kashanek
Alex Lai
Ciprian Marin
Chris Pope
Craig Scholl
Jason Williams
Susanne Willumsen
Global Sector Analysts Emerging Markets Support Analysts
Operations Legal & Compliance Risk Management Committee Settlements Accounting
Ardra Belitz
Aristotel Kondili
Ning Sun
Andrew Raab
Ganesh Ramachandran
Steven Nelson
Kun Deng
Lee Ann Alexandrakis
Alexander Zagoreos
Ming Zhong
David Bliss
Edward Keating
J. Steuart Marshall
Stephen Russell
Paul H. Rogers
Celine Woo
J. Ryan Mims
Thomas C. Boyle
John P. Mariano
Kevin O’Hare
Myla Cruz
Robert Horton
Peter Gillespie
Georg Benes
Mark Lien
Fadi Al Said Walid Mourad
Jagdish Bathija Talal Noueihed
Sleiman (Sam) Aboul Hos
Erik Mckee
Rahwa Senay
Ben Wulfsohn
Alex Ingham
Elizabeth Chung
Developing Markets Equity Emerging Markets Equity Emerging Markets Small Cap
Emerging Markets Core/LatAm Equity
Emerging Markets Advantage
Emerging Markets Discounted Assets Asia ex-Japan Equity Middle East /
North Africa Equity
Emerging MarketsMulti Asset Emerging Markets FoHFEmerging Income Emerging Markets Debt
Denise SimonArif Joshi
George Varino
Darren MaddenAlessandra AlecciKaterina AlexandrakiFelipe PianettiSergio Valderrama RamirezKunal RambhiaPeter SangKunal RambhiaAgnese RobertsToby Crabtree
Seung-Ho AhnDilip KumarChristian MilonopolousAda ChinAnil GhaligiSean FlorentinAlyssa LandryRebecca LohseKen McLeod
Manish Singhai Vernon Yu
Paul Choi Sudip Biswas
Harry He Anmol Sethy
45 Lazard Asset Management
Institutional SharesLazard Emerging Markets Equity Portfolio Performance
As of 30 September 2013
As of 31 March 2015.All data in USDThe performance quoted represents past performance. Past performance does not guarantee future results. Performance is presented net of fees. The investment return and principal value of the Portfolio will fluctuate so that an investor's shares in the Portfolio, when redeemed, may be more or less than their original cost. Returns reflect reimbursement of expenses as described in the prospectus. For more complete information about the Lazard Funds and current performance, you may obtain a prospectus by calling 800.823.6300 or go to www.LazardNet.com. Read the prospectus carefully before you invest. The Lazard Funds are distributed by Lazard Asset Management Securities LLC. The MSCI Emerging Markets Index is comprised of emerging market securities in countries open to non-local investors. The index is unmanaged and has no fees. One cannot invest directly in an index.
Annualized Performance (%)
Annual Performance (%)
Annualized
3 Months 1 Year 3 Years 5 Years 10 YearsSince Inception
18 Jul 1994
Lazard Emerging Markets Equity Portfolio (Net) -1.92 -5.60 -0.92 1.68 9.20 7.22
MSCI Emerging Markets Index 2.24 0.44 0.31 1.75 8.48 5.68
Excess Return (bps) -416 -604 -123 -7 +72 +154
2014 2013 2012 2011 2010 2009 2008 2007 2006 2005
Lazard Emerging Markets Equity Portfolio (Net)
-4.16 -0.80 22.36 -17.75 22.81 69.82 -47.88 33.05 30.32 41.40
MSCI Emerging Markets Index -2.19 -2.60 18.22 -18.42 18.88 78.50 -53.33 39.38 32.17 34.00
Excess Return (bps) -197 +180 +414 +67 +393 -868 +545 -633 -185 +740
46 Lazard Asset Management
Helped/HurtLazard Emerging Markets Equity
As of 31 March 2015.The allocations and specific securities mentioned are based upon a portfolio that represents the proposed investment for a fully discretionary account. Allocations and security selection are subject to change. The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the portfolio or that securities sold have not been repurchased. The securities mentioned may not represent the entire portfolio.
What Helped
Shares of Mobile TeleSystems and Sberbank, a Russian telecom services company and a Russian bank, rebounded from prior weakness as oil prices bounced from their recent lows and as the market was hopeful that the signing of Minsk II ceasefire agreement would ease tensions in Ukraine.
OTP Bank, a Hungarian bank, benefited from improving returns in Hungary and Bulgaria as well as a reduction of in the special banking tax in 2016.
Shares of China Mobile, a Chinese telecom services company, gained on strong 4G net adds and expectations for falling marketing costs and capital expenditure.
Samsung Electronics, a South Korean manufacturer and distributor of electronic products, rose on the back of rising expectations for the new Galaxy S6 smartphone and a turnaround in the System LSI division.
What Hurt
Shares of Pacific Rubiales Energy, a Canadian energy company with assets primarily based in Colombia and Latin America, declined sharply on concerns that debt covenants could be eventually breached unless oil prices rebounded from the recent lows.
Punjab National Bank, an Indian bank, declined on the back of continued pressure on asset quality and lower levels of growth.
Shares of Banco do Brasil, a Brazilian bank, declined on concerns that macroeconomic weakness would lead to asset quality pressures as the economy slows down.
Shares of Turkiye Is Bankasi, a Turkish bank, declined due to macroeconomic concerns after the Turkish president publicly admonished the central bank and questioned its need to be independent.
BB Seguridade, a Brazilian insurance company, experienced profit taking on the back of a slightly lower growth outlook.
A higher-than-index exposure to Brazil detracted from returns.
Stock selection in the information technology, financials, energy, and consumer discretionary sectors and in China and India hurt performance.
2015Q1
47 Lazard Asset Management
Lazard Emerging Markets Equity PortfolioHelped/Hurt
As of 31 December 2014The allocations and specific securities mentioned are based upon a portfolio that represents the proposed investment for a fully discretionary account. Allocations and security selection are subject to change. The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the portfolio or that securities sold have not been repurchased. The securities mentioned may not represent the entire portfolio.
What Helped
Stocks prices in Axis Bank and Punjab National Bank, both Indian banks, increased on the back of strong returns and expectations that post the Modi election victory in India, the economy will rebound and improve returns.
The share price of Taiwan Semiconductor Manufacturing, a Taiwanese semiconductor company, increased as the company announced impressive sales results.
Bank Mandiri, an Indonesian bank, reported good quarterly results.
Shares of Telekommunikasi Indonesia, an Indonesian telecom company, performed well on the back of good execution and expectations for an increase in average revenues per unit and data penetration growth.
A higher-than-index exposure to Indonesia added value.
Stocks selection in the information technology and materials sectors and in India and Brazil helped performance.
What Hurt
Sberbank, a Russian bank, performed poorly as plummeting oil prices and severe weakness in the ruble resulted in significant macroeconomic concerns.
Mobile Telesystems, a Russian telecommunication services company, was negatively affected by the collapsing ruble and from investor concerns regarding the parent company Sistema’s legal battle with the government in relation to dividends earned from its subsidiary Bashneft.
Shares of Pacific Rubiales Energy, a Canadian energy company with assets primarily in Colombia and Latin America, declined given the company’s sensitivity to the recent collapse on oil prices.
Gazprom, a Russian gas company, was negatively affected by the recent decrease in oil prices and the ruble and from negative Russian sentiment following increased sanctions from the West.
Shares of MegaFon, a Russian telecommunication services company, were also negatively affected by the collapsing ruble.
A higher-than-index exposure to Russia significantly detracted from returns.
Stock selection in Russia hurt performance.
2014
48 Lazard Asset Management
Lazard Emerging Markets Equity PortfolioHoldings by Sector
As of 31 March 2015.Allocations and security selection are subject to change. The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the portfolio or that securities sold have not been repurchased. Please note that cash is not viewed as a strategic asset class. Source: Lazard, MSCI
0.0
2.4
3.3
7.0
6.8
8.0
9.4
8.1
7.3
19.1
28.5
4.4
0.0
0.6
4.9
5.7
8.0
8.4
9.8
9.9
20.2
28.1
0 10 20 30
Cash and Equivalents
Health Care
Utilities
Materials
Industrials
Energy
ConsumerDiscretionary
Consumer Staples
TelecomServices
InformationTechnology
Financials
(%)Lazard
MSCI Emerging Markets Index
% of Lazard
% of MSCI EM Index
Consumer Discretionary 8.4 9.4Bajaj Auto Limited.Coway Co., Ltd.Hero Motocorp LimitedHyundai Mobis Co., LtdImperial Holdings LimitedPT Astra International TbkVia Varejo SA Ctf de Deposito de Acoes Cons
of 1 Shs + 2 Pfd ShsWoolworths Holdings LimitedWynn Macau Ltd.
Consumer Staples 9.8 8.1Ambev SABritish American Tobacco Malaysia Bhd.C.P.ALL Public Co Ltd (Alien Mkt)Kimberly-Clark de Mexico SAB de CV Class AKT & G CorporationMagnit PJSCNatura Cosmeticos S.A.Oriflame Cosmetics SA Swedish DRShoprite Holdings LimitedSouza Cruz S.A.Tiger Brands Limited
Energy 8.0 8.0China Shenhua Energy Co. Ltd. Class HCNOOC LimitedEurasia Drilling Co. Ltd. Sponsored GDR
RegSGazprom OAOLukOil OAOOil & Gas Development Co. Ltd.Pacific Rubiales Energy Corp.Pakistan Petroleum LimitedPTT Exploration & Production Plc(Alien Mkt)YPF SA Class D
% of Lazard
% of MSCI EM Index
Financials 28.1 28.5Akbank TASAxis Bank LimitedBanco do Brasil S.A.BB Seguridade Participacoes SAChina Construction Bank Corporation Class HCommercial International Bank (Egypt) SAEHanwha Life Insurance Co., Ltd.Kasikornbank Public Co. Ltd.(Alien Mkt)KB Financial Group Inc.Nedbank Group LimitedOTP Bank NyrtPT Bank Mandiri (Persero) TbkPunjab National BankSanlam LimitedSberbank Russia OJSCShinhan Financial Group Co., Ltd.Standard Bank Group LimitedTurkiye Is Bankasi Anonim Sirketi Class C
Health Care 0.0 2.4Industrials 5.7 6.8
Bharat Heavy Electricals LimitedBidvest Group LimitedCCR S.A.Koc Holding A.S.Localiza Rent A Car S.A.PT United Tractors TbkWeichai Power Co., Ltd. Class H
Information Technology 20.2 19.1Baidu, Inc. Sponsored ADR Class ACielo S.A.HCL Technologies LimitedHon Hai Precision Industry Co., Ltd.NetEase, Inc. Sponsored ADRSamsung Electronics Co., Ltd.SK Hynix Inc.Taiwan Semiconductor Manufacturing Co., Ltd.Tata Consultancy Services Limited
% of Lazard
% of MSCI EM Index
Materials 4.9 7.0AC ALROSA OJSCGrupo Mexico S.A.B. de C.V. Class BHuabao International Holdings LimitedPPC Ltd.PT Semen Indonesia (Persero) TbkSiam Cement Public Co. Ltd.(Alien Mkt)Vale S.A.
Telecom Services 9.9 7.3China Mobile LimitedMegaFon OJSCMobile TeleSystems OJSCPhilippine Long Distance Telephone Co.PT Telekomunikasi Indonesia, Tbk Class BTurkcell Iletisim Hizmetleri A.S.Vodacom Group Limited
Utilities 0.6 3.3Cia Energetica de Minas Gerais Cemig CMIG
PfdCash and Equivalents 4.4 0.0Total Portfolio 100.0 100.0
49 Lazard Asset Management
Lazard Emerging Markets Equity PortfolioHoldings by Country
As of 31 March 2015.1 Other – Consists of companies that have 50% or more of their net assets and/or sales from emerging markets, but are domiciled in non-emerging market countries.The allocations and specific securities mentioned are based upon a portfolio that represents the proposed investment for a fully discretionary account. Allocations and security selection are subject to change. The securities mentioned are not necessarily held by Lazard for all client portfolios, and their mention should not be considered a recommendation or solicitation to purchase or sell these securities. It should not be assumed that any investment in these securities was, or will prove to be, profitable, or that the investment decisions we make in the future will be profitable or equal to the investment performance of securities referenced herein. There is no assurance that any securities referenced herein are currently held in the portfolio or that securities sold have not been repurchased. Please note that cash is not viewed as a strategic asset class. Source: Lazard, MSCI
0.0
0.0
14.5
17.0
68.5
4.4
1.4
15.1
23.1
55.9
0 25 50 75
Cash andEquivalents
Other¹
Latin America
Europe/MiddleEast/Africa
South/East Asia
(%)Lazard
MSCI Emerging Markets Index
% of Lazard
% of MSCI EM Index
Czech Republic 0.0 0.2Egypt 1.3 0.2
Commercial International Bank (Egypt) SAEGreece 0.0 0.3Hungary 1.3 0.2
OTP Bank NyrtPoland 0.0 1.5Qatar 0.0 0.8Russia 7.7 3.7
AC ALROSA OJSCEurasia Drilling Co. Ltd. Sponsored GDR
RegSGazprom OAOLukOil OAOMagnit PJSCMegaFon OJSCMobile TeleSystems OJSCSberbank Russia OJSC
South Africa 8.6 8.0Bidvest Group LimitedImperial Holdings LimitedNedbank Group LimitedPPC Ltd.Sanlam LimitedShoprite Holdings LimitedStandard Bank Group LimitedTiger Brands LimitedVodacom Group LimitedWoolworths Holdings Limited
Turkey 4.2 1.5Akbank TASKoc Holding A.S.Turkcell Iletisim Hizmetleri A.S.Turkiye Is Bankasi Anonim Sirketi Class C
United Arab Emirates 0.0 0.6Total Europe/Middle East/Africa
23.1 17.0
% of Lazard
% of MSCI EM Index
Argentina 1.1 0.0YPF SA Class D
Brazil 12.5 7.3Ambev SABanco do Brasil S.A.BB Seguridade Participacoes SACCR S.A.Cia Energetica de Minas Gerais Cemig CMIG
PfdCielo S.A.Localiza Rent A Car S.A.Natura Cosmeticos S.A.Souza Cruz S.A.Vale S.A.Via Varejo SA Ctf de Deposito de Acoes Cons
of 1 Shs + 2 Pfd ShsChile 0.0 1.4Colombia 0.0 0.6Mexico 1.6 4.7
Grupo Mexico S.A.B. de C.V. Class BKimberly-Clark de Mexico SAB de CV Class A
Peru 0.0 0.4Total Latin America 15.1 14.5Other 1.4 0.0
Oriflame Cosmetics SA Swedish DRPacific Rubiales Energy Corp.Wynn Macau Ltd.
Total Other 1.4 0.0China 14.7 23.1
Baidu, Inc. Sponsored ADR Class AChina Construction Bank Corporation Class HChina Mobile LimitedChina Shenhua Energy Co. Ltd. Class HCNOOC LimitedHuabao International Holdings LimitedNetEase, Inc. Sponsored ADRWeichai Power Co., Ltd. Class H
% of Lazard
% of MSCI EM Index
India 9.1 7.5Axis Bank LimitedBajaj Auto Limited.Bharat Heavy Electricals LimitedHCL Technologies LimitedHero Motocorp LimitedPunjab National BankTata Consultancy Services Limited
Indonesia 6.5 2.8PT Astra International TbkPT Bank Mandiri (Persero) TbkPT Semen Indonesia (Persero) TbkPT Telekomunikasi Indonesia, Tbk Class BPT United Tractors Tbk
Korea 14.0 15.0Coway Co., Ltd.Hanwha Life Insurance Co., Ltd.Hyundai Mobis Co., LtdKB Financial Group Inc.KT & G CorporationSamsung Electronics Co., Ltd.Shinhan Financial Group Co., Ltd.SK Hynix Inc.
Malaysia 0.8 3.5British American Tobacco Malaysia Bhd.
Pakistan 1.3 0.0Oil & Gas Development Co. Ltd.Pakistan Petroleum Limited
Philippines 1.7 1.4Philippine Long Distance Telephone Co.
Taiwan 5.2 12.8Hon Hai Precision Industry Co., Ltd.Taiwan Semiconductor Manufacturing Co., Ltd.
Thailand 2.6 2.4C.P.ALL Public Co Ltd (Alien Mkt)Kasikornbank Public Co. Ltd.(Alien Mkt)PTT Exploration & Production Plc(Alien Mkt)Siam Cement Public Co. Ltd.(Alien Mkt)
Total South/East Asia 55.9 68.5Cash and Equivalents 4.4 0.0Total Portfolio 100.0 100.0
50 Lazard Asset Management
Lazard Emerging Markets Equity PortfolioMarket Cap Exposure
As of 31 March 2015Source: Lazard, MSCI
7.6
27.6
20.8
44.1
4.3
22.9
22.1
45.6
0 20 40 60
Less than $3B
$3B to $10B
$10B to $20B
Greater than $20B
(%)
Lazard Emerging Markets Equity Portfolio MSCI Emerging Markets Index
51 Lazard Asset Management
0
5
10
15
20
25
30
0
5
10
15
20
25
30
Dec 04 Dec 05 Dec 06 Dec 07 Dec 08 Dec 09 Dec 10 Dec 11 Dec12 Dec 13 Dec 14
ROE (%)P/E
MSCI World P/E MSCI EM P/E
MSCI World ROE MSCI EM ROE
Emerging markets equities are currently at a discount to developed markets
Emerging markets equities are currently at a discount to developed markets
Valuations and Financial Productivity
MSCI World Index vs. MSCI Emerging Markets Index
As of 31 December 2014Characteristics shown are calculated on a trailing 1-year basis. Source: Lazard, MSCI
52 Lazard Asset Management
500
600
700
800
900
1,000
1,100
1,200
Mar
09
Jun
09
Sep
09
Dec
09
Mar
10
Jun
10
Sep
10
Dec
10
Mar
11
Jun
11
Sep
11
Dec
11
Mar
12
Jun
12
Sep
12
Dec
12
Mar
13
Jun
13
Sep
13
Dec
13
Mar
14
Jun
14
Sep
14
Dec
14
Mar
15
Price (USD)
QE 2
Financial Crisis Lows
Ukrainian Unrest
Bumpier Times! (Post Financial Crisis)
MSCI Emerging Markets Index: 1 March 2009 – 31 March 2015
As of 31 March 2015.Source: MSCI-Barra
2011 CorrectionQE 3 Possible
QE Tapering
QE TaperingDelayed
Middle East Unrest
53 Lazard Asset Management
Major Risks
Global economy
Chinese Credit
Severe dollar strength
Risks
All opinions expressed herein are as of 31 March 2015 and are subject to change.
Minor Risks
Geopolitics
Commodity prices
Trade friction
Select valuation risks
54 Lazard Asset Management
We believe fundamentals and valuations remain attractive in emerging markets.
Very strong global growth would not, in our opinion, be optimal for Emerging Markets.
We remain bullish on the outlook for emerging-market equities over the short, medium, and long term. We believe that valuations are not excessive in all scenarios other than for a global recession.
Outlook
All opinions expressed herein are as of 31 March 2015 and are subject to change.
TABTAB
56 Lazard Asset Management
Summary
Robust bottom-up relative value investment process Favorable trade-off between valuation and financial productivity Focus on both valuation and financial productivity helps avoid "value traps" Borderless alpha generation capability
Seeks to provide a strong pattern of performance Aims to achieve downside protection, good upside participation Seeks attractive risk adjusted returns
Complete opportunity set Use full capitalization spectrum to seek attractive ideas Strong emerging markets expertise
Current market environment suits our process Stock picking is rewarded Focus on companies with strong balance sheets, cash flows and business models
As of 31 March 2015 and is subject to change.
TABTAB
58 Lazard Asset Management
BiographiesInternational Equity Select Management Team
Michael G. Fry Managing Director, Portfolio Manager/AnalystLazard Asset Management Limited (London)Michael G. Fry is a Portfolio Manager/Analyst on various global and international equity teams. He began working in the investment field in 1981. Prior to joining Lazard in 2005, Michael was Head of Global Equity Portfolio Management, Global Head of Equity Research and Head of Australian Equities with UBS Global Asset Management, and was also previously with Armstrong Jones Fund Management, Schroder Investment Management, and Price Waterhouse in Australia. He has a BEc from Flinders University, Australia. Michael is a member of the Institute of Chartered Accountants in Australia and an associate of the Financial Services Institute of Australasia.
Michael A. BennettManaging Director, Portfolio Manager/AnalystLazard Asset Management LLC (New York)Michael Bennett is a Managing Director of Lazard Asset Management and a Portfolio Manager/Analyst on variousinternational and global equity teams. He also coordinates the activities of Lazard Asset Management's Investment Council.Michael began working in the investment field in 1986. Prior to joining Lazard in 1992, Michael was with G.E. InvestmentCorporation, Keith Lippert Associates and became a CPA while at Arthur Andersen. He has an MBA from University ofChicago and a BS in Accounting from New York University.
Kevin J. Matthews, CFAManaging Director, Portfolio Manager/Analyst Lazard Asset Management LLC (New York)Kevin Matthews is a Portfolio Manager/Analyst on the International Equity Select team. Prior to joining the International Equity Select team, he was a Research Analyst with a background in financials, automotive, aerospace, and capital goods sectors. He began working in the investment field in 2001 when he joined Lazard. Kevin has a BA in Politics and Philosophy from St. Chad’s College, Durham University.
Michael PowersManaging Director, Portfolio Manager/AnalystLazard Asset Management LLC (New York)Michael Powers is a Portfolio Manager/Analyst on the Global and International Equity Select teams. He began working in the investment field in 1990 when he joined Lazard. Michael has an MBA from Long Island University and a BA from Brown University.
59 Lazard Asset Management
BiographiesEmerging Markets Equity Management Team
James Donald, CFAManaging Director, Portfolio Manager/AnalystLazard Asset Management LLC (New York)James Donald is a Portfolio Manager/Analyst on the Emerging Markets Equity team and Head of the Emerging Markets Group.James is also a member of the International Equity Select with Emerging Markets team. He began working in the investment fieldin 1983. Prior to joining Lazard in 1996, James was a Portfolio Manager with Mercury Asset Management. He has a BA (Hons) inhistory from the University of Western Ontario.
Rohit ChopraManaging Director, Portfolio Manager/AnalystLazard Asset Management LLC (New York)Rohit Chopra is a Portfolio Manager/Analyst on the Emerging Markets Equity team, focusing on consumer andtelecommunications research and analysis. He began working in the investment field in 1996. Prior to joining the Firm in 1999,Rohit was with Financial Resources Group, Deutsche Bank and Morgan Stanley. He has a BS in Finance and InformationSystems from New York University and also studied at the London School of Economics and Political Science.
Monika Shrestha Director, Portfolio Manager/AnalystLazard Asset Management LLC (New York)Monika Shrestha is a Portfolio Manager/Analyst on the Emerging Markets Equity team, responsible for research coverage ofcompanies in the financials sector. She began working in the investment field in 1997. Prior to joining Lazard in 2003, Monikawas a principal at Waterview Advisors and a Corporate Finance Analyst with Salomon Smith Barney. She has an MBA fromHarvard Business School, a BSE in Computer Science and Engineering and a BS in Economics (with a concentration in Finance)from the University of Pennsylvania.
60 Lazard Asset Management
Emerging Markets Equity Management TeamBiographies
Lada EmelianovaSenior Vice President, Research AnalystLazard Asset Management LLC (New York)Lada Emelianova is a Research Analyst on the Emerging Markets Equity team, responsible for research coverage of companies in the materials sector. She began working in the investment field in 1998 as a senior investment analyst in the Alternative Assetsgroup at CIBC World Markets. Prior to joining Lazard in 2010, Lada was a Portfolio Manager at Newgate Capital Management responsible for their EMEA investments. She also co-managed Newgate's Global Resource Fund. Prior to Newgate, Lada was an analyst at Libra Advisors LLC, an equity long/short hedge fund. She has a MALD degree in International Business and Finance from the Fletcher School of Law and Diplomacy at Tufts University and Harvard University, as well as a MA in Natural ResourceManagement from Tufts University. She also has a MS, Summa Cum Laude, in Seismology and Geophysics from Moscow State University.
Donald FloydDirector, Research AnalystLazard Asset Management LLC (New York)Donald Floyd is a Research Analyst on the Emerging Markets Equity team, responsible for research coverage of companies in thetechnology and industrials sectors. Donald began working in the investment field in 1995. Prior to joining Lazard in 2011, heworked at Royal Bank of Scotland and Citigroup in AsiaPAC Equity Sales focusing on the technology sector with a Taiwan/China bias. Prior to that, Donald was Head of Asia Technology Research at Lehman Brothers and CLSA based in Taiwan. Previously, he worked in the industry at Teradyne and M.I.T.'s Artificial Intelligence Lab. Donald has an MBA from Babson College and a BS in Electrical Engineering from Carnegie Mellon University.
Ben Wulfsohn, CFADirector, Research AnalystLazard Asset Management LLC (New York)Ben Wulfsohn is a Research Analyst on the Emerging Markets Equity and Emerging Markets Small Cap Equity teams. He is responsible for research coverage of the emerging markets utilities, energy and health care sectors, as well as client communications. Ben began working in the investment industry in 1991. Prior to joining Lazard in 2001, Ben was Director of Marketing Support with Weiss, Peck & Greer, LLC and an Investment Consultant for Segal Advisors, Inc. He has a BSC (Hons) in Physics from the University of London, Queen Mary College.
61 Lazard Asset Management
Important Information
Equity securities will fluctuate in price; the value of your investment will thus fluctuate, and this may result in a loss. Securities in certain non-domestic countries may be less liquid, more volatile, and less subject to governmental supervision than in one’s home market. The values of these securities may be affected by changes in currency rates, application of a country’s specific tax laws, changes in government administration, and economic and monetary policy. Emerging market securities carry special risks, such as less developed or less efficient trading markets, a lack of company information, and differing auditing and legal standards. The securities markets of emerging market countries can be extremely volatile; performance can also be influenced by political, social, and economic factors affecting companies in emerging market countries.
Certain information included herein is derived by Lazard in part from an MSCI index or indices (the “Index Data”). However, MSCI has not reviewed this product or report, and does not endorse or express any opinion regarding this product or report or any analysis or other information contained herein or the author or source of any such information or analysis. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any Index Data or data derived therefrom. The MSCI Index Data may not be further redistributed or used as a basis for other indices or any securities or financial products.