The Lazard Global Small Cap Fund seeks to achieve total returns (including income and capital appreciation and before the deduction of fees and taxes) that exceed those of the MSCI World Small Cap Accumulation Index by 3% per annum over rolling three-year periods. The investment strategy of the Fund is to provide investors with access to investments in global small companies in any geographical location.
The portfolio performed roughly in line with the MSCI World Small Cap Index in the period, net of fees and in Australian dollar terms. Stock selection was slightly positive on a regional basis and slightly negative on a sector basis. US stock selection was particularly strong in the period, while Japan proved to be more challenging. On a sector basis, positive stock selection in healthcare was a notable contributor after detracting from performance earlier in the year. Allocation meanwhile was slightly negative on a regional basis and slightly positive on a sector basis.
Helped
Hostess Brands, a US-listed baker and distributor of sweet baked goods, performed well in the period. The share price rose sharply following an offer from S.J. Smucker to purchase the company. The portfolio no longer holds the shares.
Array Technologies, a US-listed manufacturer of ground mounting systems used in solar energy projects, performed well after our early August purchase. The share price rose after the release of better-than-expected quarterly results that demonstrated robust order development, strong pricing power, and improved profitability. The portfolio continues to hold the shares.
Hurt
ZoomInfo Technologies, a US-listed provider of business-to-business (B2B) contact data, intelligence, and analytics for sales, marketing, operations, and recruiting teams, performed poorly in the period. The share price fell after the release of weaker-than-expected quarterly results and somewhat cautious guidance from corporate management for the rest of the year. Although cyclical headwinds should abate in the medium-term, some investors remain concerned about near-term growth dynamics. The portfolio continues to hold the shares.
CAB Payments, a UK-listed provider of B2B cross-border payment and foreign exchange services to international development organizations (e.g., the United Nations), banks, and central banks, and other “blue-chip” customers, performed poorly in the period. Following the company’s July initial public offering (IPO), the shares broke below the price when they were issued and continued to weaken despite the release of better-than-expected quarterly results and an optimistic outlook from corporate management. The portfolio continues to hold the shares.
What is Lazard Global Small Cap W Lazard Global Small Cap W is an Managed Funds investment product that is benchmarked against Developed -World Index and sits inside the Foreign Equity - World Mid/Small Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Lazard Global Small Cap W has Assets Under Management of 285.28 M with a management fee of 1.02%, a performance fee of 0.00% and a buy/sell spread fee of 0.6%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Lazard Global Small Cap W has returned -1.43% in the last month. The previous three years have returned -1.22% annualised and 14% each year since inception, which is when the Lazard Global Small Cap W first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Lazard Global Small Cap W first started, the Sharpe ratio is NA with an annualised volatility of 14%. The maximum drawdown of the investment product in the last 12 months is -4.82% and -50.36% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Lazard Global Small Cap W has a 12-month excess return when compared to the Foreign Equity - World Mid/Small Index of -3.94% and -0.6% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Lazard Global Small Cap W has produced Alpha over the Foreign Equity - World Mid/Small Index of NA% in the last 12 months and NA% since inception.
What are similar investment products?
For a full list of investment products in the Foreign Equity - World Mid/Small Index category, you can click here for the Peer Investment Report.
What level of diversification will Lazard Global Small Cap W provide?
Lazard Global Small Cap W has a correlation coefficient of 0.97 and a beta of 0.9 when compared to the Foreign Equity - World Mid/Small Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Lazard Global Small Cap W and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Lazard Global Small Cap W with the Developed -World Index?
For a full quantitative report on Lazard Global Small Cap W compared to the Developed -World Index, you can click here.
Can I sort and compare the Lazard Global Small Cap W to do my own analysis?
To sort and compare the Lazard Global Small Cap W financial metrics, please refer to the table above.
Has the Lazard Global Small Cap W been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Lazard Global Small Cap W?
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Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Lazard Global Small Cap W. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - August 31, 2023 The Lazard Global Small Cap Equity Fund performed roughly in line the MSCI Global Small Cap Index in the period. On a regional basis, stock selection and allocation both contributed marginally to relative performance. On a sector basis, stock selection detracted modestly while allocation contributed moderately.
Shares of Array Technologies (industrials), a US-listed manufacturer of mounting systems used in solar energy projects, performed well during the month after the release of a well-received quarterly results that demonstrated better-than-expected profitability development. The portfolio continues to hold the shares.
Shares of Hostess (consumer staples), a US-listed baked goods manufacturer, performed well amid press speculation regarding possible bids for the company from industry peers. The portfolio continues to hold the shares.
Shares of AbCellera (healthcare), a US-listed contract research organization that offers antibody discovery services, fell after the release of lower-than-expected quarterly earnings. Concerns over the industry-wide demand outlook for research and development (R&D) also hurt the stock amid a softer economic environment. The portfolio continues to hold the shares.
Shares of ZoomInfo Technology (communication services), a US-listed sales and marketing data provider, fell after the release of lower-thanexpected quarterly earnings and a more cautious near-term outlook from corporate management. The portfolio continued to hold the shares.
Performance Commentary - July 31, 2023 The Lazard Global Small Cap Equity Fund rose on an absolute basis, but modestly underperformed the MSCI Global Small Cap Index (net of fees) in the period. Stock selection was roughly neutral while allocation detracted.
Shares of Helen of Troy (consumer discretionary), a US-listed personal care and household products manufacturer, performed well during the month after the release of better-than-expected quarterly results. Continued investor optimism on the corporate management’s outlook for the company also boosted the stock price. The portfolio continues to hold the shares.
Shares of Comerica (financials), a US-listed bank, continued to perform well after the release of better-than-feared quarterly results. The portfolio continues to hold the shares.
Shares of Trisura (financials), a Canada-listed property and casualty insurer, fell amid increased industry-wide concerns regarding counterparty exposure following fraud allegations against a competitor’s reinsurer. The portfolio continues to hold the shares.
Shares of SeSa (information technology), an Italy-listed value-added information technology solutions provider, gave back in July the gains it posted in June amid investor concerns over the company’s cash flow as it continues to invest heavily in mergers and acquisitions and capital expenditures. Worries overshadowed the release of quarterly results that were in line with analysts’ expectations. The portfolio continues to hold the shares.
Performance Commentary - June 30, 2023 The portfolio underperformed the MSCI World Small Cap Index (net of fees, in Australian dollar terms) in the period as positive allocation was more than offset by negative stock selection. Stock selection in healthcare accounted for largest portion of negative attribution. Several holdings in this sector faced idiosyncratic challenges in the quarter that detracted from relative performance. For the most part, we continue to believe in the investment theses that underpin these holdings and maintained or added to these positions.
Helen of Troy, a US-listed personal care and household products manufacturer, performed well during the period. The share price bounced back strongly in the second quarter following a challenging performance in the first quarter. Better-than-feared quarterly results, clarity on executive succession plans, and a more-optimistic-than-expected outlook for next year from corporate management all worked to improve investor sentiment. The portfolio continues to hold the shares.
Stevanato, a US-listed manufacturer of drug containment (e.g., vials) and delivery (e.g., syringes) systems, performed well in the period. The share price continued to rise after reporting quarterly results that were in line with market expectations and a strong orderbook. The stock was also boosted by investor optimism on the demand potential for obesity and Type II diabetes-related drugs (e.g., glucagon-like peptide-1 known as GLP-1) and delivery systems (e.g., auto and pen injectors). The portfolio continues to hold the shares.
Catalent, a US-listed contract development and manufacturing organization (CDMO) serving the pharmaceutical industry, performed poorly in the period. The share price fell following the announcement of further operational issues at three facilities, the unexpected departure of the company’s chief financial officer, a dropped takeover bid from an industry peer, and the delayed release of quarterly results. The portfolio no longer holds the shares.
Envista, a US-listed leading manufacturer of dental implants, orthodonture products (brackets & wires, clear aligners), consumable products, and equipment, performed poorly in the period. The share price fell after the release of weaker-than-expected quarterly results due to demand headwinds in emerging markets and soft equipment volumes. The portfolio continues to hold the shares.
Performance Commentary - May 31, 2023 The portfolio underperformed the MSCI Global Small Cap Index in the period (in Australian dollar terms, net of fees) as allocation’s positive impact was more than offset by stock selection. Shares of Crayon (information technology), a Norway-listed value add software reseller, performed well during the month after the release of strong quarterly results that demonstrated robust growth, higher profitability, and improved free cashflow.
The portfolio continues to hold the shares. Shares of CyberArk Software (information technology), a US-listed security software solutions provider, performed well after the release of better-than-expected quarterly results, an optimistic outlook from corporate management, and a well-received capital markets day led by the company’s new chief executive officer (CEO). The portfolio continues to hold the shares. Shares of Ingevity (materials), a US-listed manufacturer of carbon-based products used in automotive emissions reduction systems and food, water, and beverage purification processes, fell in the month following the release of quarterly earnings that included a worse -than-expected outlook from corporate management due to rising input costs and increased recession concerns.
The portfolio continues to hold the shares. Shares of Envista (health care), a US-listed dental products manufacturer, fell after the release of mixed set of quarterly results and heightened concerns among some investors regarding demand durability in the face of slower economic growth. The portfolio continued to hold the shares.
Performance Commentary - April 30, 2023 Global small cap equities fell marginally in the month. Stocks in more defensive sectors such as healthcare, consumer staples and communication services outperformed on a relative basis. On the other hand, stocks in the information technology sector, and to a lesser degree, the materials sector, lagged. On a geographic basis, the United Kingdom outperformed significantly while the United States trailed.
Performance Commentary - March 31, 2023 The portfolio rose in absolute terms but underperformed the MSCI World Small Cap Index somewhat in the quarter on a net of fees basis.
Allocation impact was positive on regional basis and negative on a sector basis. Stock selection detracted from relative performance in the quarter.
JD Sports Fashion (consumer discretionary), a UK-listed branded sports apparel and footwear retailer, contributed positively to relative performance in the period. The shares rose after a well-received capital markets day led by the company’s new chief executive officer (CEO), and the release of strong results that demonstrated robust demand during the key holiday season. The portfolio continues to hold the shares.
Dream Industrial REIT (real estate), a Canada-listed industrial real estate investment trust, contributed positively to relative performance in the period. The shares rose after the release of solid quarterly results that reflected strong rental rate increases. The portfolio continues to hold the shares.
Commerce Bancshares (financials) and East West Bancorp (financials), two US-listed regional banks, detracted from relative performance in the period. The share prices of both companies fell alongside those of other banks following the failures of Silicon Valley and Signature. The portfolio continues to hold Commerce Bancshares shares, but it no longer owns a stake in East West Bank.
Performance Commentary - February 28, 2023 Lazard Global Small Cap Equity Fund slightly outperformed the MSCI Global Small Cap Index on a net of fees basis in February. On a sector basis, stock selection was the primary contributor to positive attribution in the period. Shares of Catalent (health care), a US-listed contract development and manufacturing organization (CDMO) for the pharmaceutical industry, rose in the period after press speculation regarding a potential bid for the company by Danaher, the release of better-than-expected quarterly results, and an optimistic outlook from corporate management. The portfolio continues to hold the shares. Shares of Atkore (industrials), a US-listed manufacturer of electrical conduits, cables, and installation accessories for the construction industry, performed well in the period as the company released strong quarterly results and a more-optimistic-than-expected outlook. The portfolio continues to hold the shares. Shares of AbCellera (health care), a Canada-based contract research organization (CRO) for the development of therapeutic antibodies, fell in the period following the release of a mixed set of quarterly results. The portfolio continues to hold the shares. Shares of Leslie’s (consumer discretionary), a US-listed pool and spa retailer, gave back some of their very strong January gains in February following the release of a mixed set of quarterly results. The portfolio continues to hold the shares.
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