An Update of the Emerging Markets Debt Strategies
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
An Update of the Emerging Markets Debt Strategies
Third Quarter 2018
Featuring:
Arif T. Joshi, CFA
Managing Director,
Portfolio Manager/Analyst
This presentation and all research and materials enclosed are property of Lazard Asset Management LLC.
Information 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.
Please see Appendix for additional important information about risks.
For Financial Professional Use Only. Not for Public Distribution.Q3 Market Review
Emerging Markets Debt
Spread Yield
Return
Current Level Q3 Change Current Level Q3 Change
JPM EMBI GD 2.30% 335 bps -34 bps 6.41% -0.13%
Investment Grade 1.97% 170 bps -31 bps 4.79% -0.10%
High Yield 2.65% 526 bps -36 bps 8.29% -0.15%
JPM GBI-EM GD -1.82% - - 6.62% +0.03%
Local FX -2.05% - - - -
JPM CEMBI BD 1.30% 286 bps -16 bps 5.85% +0.06%
Investment Grade 1.14% 176 bps -20 bps 4.78% +0.02%
High Yield 1.54% 453 bps -3 bps 7.49% +0.18%
Market Overview
The blended asset class is posted a slightly positive return during Q3, as gains in external debt offset losses in local debt.
The blended index yield is near its post-global financial crisis high at over 6.5%
The broad USD was roughly flat during Q3 but appreciated over 2% against EM currencies. On a nominal basis, EM
currencies have reached their lowest level in over 15 years
Brent crude prices ended Q3 over $80 per barrel and have risen nearly 25% YTD
US yield curve continued to flatten. The 2s10s spread is less than 25 bps, its flattest level in over a decade
Information and opinions are subject to change. 2 Lazard Asset Management
As of 30 September 2018.Lazard Emerging Markets Debt
Performance Overview
Annualized Performance
Annualized
Since Inception
Q3 2018 YTD 1-Year 3-Year 5-Year (Oct 2011)
Lazard EMD – Blend -0.13% -6.77% -5.89% 5.42% 1.16% 3.06%
50% JP Morgan EMBI Global Diversified
0.25% -5.55% -4.60% 5.68% 1.86% 2.94%
50% JP Morgan GBI-EM Global Diversified
Excess Returns (bps) -38 -122 -129 -26 -70 +12
Since Inception
Q3 2018 YTD 1-Year 3-Year 5-Year (Dec 2010)
Lazard EMD – Total Return -0.07% -6.35% -4.92% 3.34% 1.56% 2.81%
Up Market Capture - - - 59% 83% 99%1
Down Market Capture - 114% 107% - - -
EMD Blend Attribution EMD – Total Return Attribution
Relative to 50% JPM EMBI Gl Diversified/50% JPM GBI-EM Gl Diversified (bps) Absolute (bps)
Since Since
Q3 2018 YTD 1-Year 3-Year 5-Year Inception Q3 2018 YTD 1-Year 3-Year 5-Year Inception
Overall Allocation – HC vs LC 0 67 63 13 38 53 Sovereign Credit 77 -307 -188 375 250 261
Sovereign Hard Currency -1 -123 -94 5 -62 -32 Corporate Credit 29 -4 3 67 -3 19
Country selection 2 -84 -53 26 -31 -4 Local Markets -90 -330 -268 -64 -52 24
Security selection -3 -39 -41 -21 -31 -28 Portfolio Hedges -23 6 -39 -44 -39 -23
Corporates -2 3 4 7 -26 -5 TOTAL -7 -635 -492 +334 +156 +281
Local Securities -35 -69 -102 -51 -20 -4
Rates -1 22 17 16 5 1
F/X -34 -91 -119 -67 -25 -5
TOTAL -38 -122 -129 -26 -70 +12
As of 30 September 2018
Capture rate is calculated against the blended 50% JP Morgan EMBI Global Diversified / 50% JP Morgan GBI-EM Global Diversified Index. Blended index performance since inception of
the total return strategy (December 2010) is 0.58%.
Performance is presented gross of all fees. Gross of fee performance is presented as supplementary information, as performance excludes transaction costs. Please refer to the attached 3 Lazard Asset Management
disclosures for important additional details of these composites. The performance quoted represents past performance. Past performance is not a reliable indicator of future results.
Source: Lazard, JP MorganPortfolio Positioning Summary
EMD Blend and Total Return
EMD Blend EMD Total Return
Expected Alpha (12M) 3.5% -
Expected Return (12M) 10.8% 10.4%
Excess Yield +1.97% 7.92%
Portfolio YTM 8.48% 7.92%
Benchmark YTM 6.51% -
Active Duration +0.1 yrs 6.6 yrs
Portfolio Duration 6.0 yrs 6.6 yrs
Benchmark Duration 5.9 yrs -
Risk Budget Usage 94% 95%
Hard Currency 60% 74%
Local Currency 34% 21%
EMD Blend Asset Allocation
120%
Hard Currency Local Currency Local FX
7% 5% 6% 7% 7%
100% 4% 8% 7% 7% 3%
80%
50% 50% 50% 50% 50% 50%
63% 59% 50% 50%
60%
40%
20% 37% 37% 45% 45% 50% 50% 50% 50% 50% 50%
0%
Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18
4 Lazard Asset Management
As of 30 September 2018. For illustrative purposes only, this should not be considered a recommendation or solicitation to purchase or sell any security. Allocations and security selection are
subject to change. The performance quoted represents past performance. Past performance is not a reliable indicator of future results. Expected returns do not represent a promise or
guarantee of future returns and are subject to change.Portfolio Positioning: Key Country and Currency Positions
Emerging Markets Debt – Blend
Key HC Sovereign and Quasi Sovereign Key Local DV01 Positions
(Relative to Benchmark – %) (Relative to Benchmark – bps)
Egypt 2.79
South Africa 10
Angola 1.97
Brazil 8
Dominican Repb. 1.74
Chile 6
Ghana 1.48 Mexico 5
Venezuela 1.21 Peru 4
Malaysia -1.30 Colombia -3
Chile -1.38 Romania -6
Philippines -1.39 Hungary -10
Mexico -1.82 Poland -13
China -2.24 Thailand -16
-20 -15 -10 -5 0 5 10 15
-3.00 -2.00 -1.00 0.00 1.00 2.00 3.00 4.00
Key HC Corporate Country Positions Key Local Currency Positions
(Relative to Benchmark – %) (Relative to Benchmark – %)
Colombia 1.72
Brazil 0.84 Mexico 0.96
Brazil 0.71
Turkey 0.52
Chile 0.52
Czech 0.75
Hungary -1.03
Guatemala 0.48
Philippines 1.99
Indonesia 1.45
Malaysia -0.38
India 0.47 Taiwan -2.05
Chile 0.96
Argentina 0.47
Frontier* 1.42
0.00 0.20 0.40 0.60 0.80 1.00 -3.00 -2.00 -1.00 0.00 1.00 2.00 3.00
As of 30 September 2018
* Frontier includes Nigerian naira, Ghanaian Cedi, Argentine Peso, and Dominican peso
The allocations and specific securities are based upon a portfolio that represents the proposed investment for a fully discretionary account. 5 Lazard Asset Management
For illustrative purposes only, this should not be considered a recommendation or solicitation to purchase or sell any security. Allocations and security selection are subject to change.
Source: Lazard, JP MorganPortfolio Positioning: Key Investment Themes
Emerging Markets Debt – Total Return
Long EMFX Bottom-up Sovereign Credit
(MV %) (MV %)
Indonesia 4.5 Egypt 4.7
Poland 4.1 Ghana 4.1
Brazil 2.8 Dominican Repb. 3.4
Frontier* 2.1 Angola 3.3
Colombia 2.1 Kenya 2.8
Singapore 2.0 Ukraine 2.7
Mexico 1.8 Venezuela 2.5
Turkey 1.0 Mozambique 2.0
EUR 0.7 Nigeria 1.9
India -0.6 Argentina 1.8
Hungary -0.8 Mexico -20.0
-4.0 -2.0 0.0 2.0 4.0 6.0 -25.0 -20.0 -15.0 -10.0 -5.0 0.0 5.0 10.0
Bottom-up Local Rates Investment Grade Sovereigns
(DV01 bps)
Portfolio
25
MV Weight 26%
20
YTM 4.44%
15 Duration (years) 9.23
10 Corporate Exposure
5 Portfolio
MV Weight 20%
0
South Africa Brazil YTW 6.96%
Duration (years) 3.62
As of 30 September 2018
* Frontier positions include Ghana, Uruguay, and Nigeria.
The allocations and specific securities are based upon a portfolio that represents the proposed investment for a fully discretionary account.
6 Lazard Asset Management
For illustrative purposes only, this should not be considered a recommendation or solicitation to purchase or sell any security. Allocations and security selection are subject to change.
Source: Lazard, JP MorganLazard Emerging Markets Debt Outlook and Positioning Outlook Many of the factors that drove EMD returns lower over the past six months have either stabilized or reversed course, which should support a recovery in emerging markets asset prices While risks such as heightened trade tensions are likely to persist, these are largely priced in with yields near post-global financial crisis highs With a few notable exceptions, bottom-up fundamentals in most countries are solid A prolonged period of EM stress is unlikely and contagion risks are low Key risks include a potential slowdown in global growth, trade wars and upside risks to UST yields Positioning Top-Down Asset Allocation: Neutral asset allocation in Blend and bias towards hard currency in Total Return due to risk-adjusted return expectations Duration/Yield Curve: Positioned for continued curve flattening Bottom-Up Sovereign Credit: Favor countries with solid fundamentals, favorable reform trajectories, and attractive valuations (e.g., Egypt, Angola, Ghana) Corporate Credit: Focus on short-dated HY corporates with attractive yield pickups over similar maturity sovereigns Local Rates: Favor select high yielders (Brazil, South Africa) versus eastern Europe and Asia Local FX: Favor certain high yielding currencies (Brazilian real, Mexican peso) and small frontier exposure As of 30 September 2018 The allocations and specific securities are based upon the client’s account. For illustrative purposes only, this should not be considered a recommendation or solicitation to purchase or sell 7 Lazard Asset Management any security. Allocations and security selection are subject to change. Information and opinions are subject to change.
GIPS Composite Information
Lazard Emerging Markets Debt - Blend
Benchmark: 50% JPM EMBI Global Div / 50% JPM GBI-EM Global Div Blended Index
Reporting Date: 30 June 2018
Composite Inception Date: 01 October 2011
Reporting Currency: U.S. Dollar
Composite Description
The composite returns represent the total returns of all fully discretionary portfolios with an Emerging Markets Debt - Blend investment mandate and a minimum of $40 million in assets under management. The
Emerging Markets Debt - Blend strategy seeks to outperform the 50/50 benchmark of the JP Morgan Emerging Markets Bonds Index Global Diversified (EMBI Global Diversified) and JP Morgan GBI-EM Global
Diversified by +2-4% p.a. over a market cycle, with a tracking error of 2-5%. The portfolio may hold 25-75% in either hard currency or local currency debt, depending on the outlook for each asset class. Despite
being benchmark-aware, the strategy is free to invest out of the benchmark (maximum non-benchmark exposure is 35%) to allow the investment team to exploit the full universe of evolving opportunities. Key drivers
of return for this strategy are moves in US Treasuries, credit premiums, growth, and inflation expectations within emerging market countries. The strategy may hold up to 20% in corporate securities.
Calculation of Performance Returns
Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Net returns for Lazard mutual funds included in this
composite are net of all fees. Exchange rates for composite accounts and the benchmark are normally based on the 16:00 GMT fix, with the exception of US Mutual Fund valuation exchange rates, which are based on
the 21:00 GMT fix. The composite and benchmark returns are reported net of foreign withholding taxes on dividends, interest and capital gains. The composite returns presented represent past performance and is not a
reliable indicator of future results, which may vary.
Fee Schedule
Lazard’s standard fee schedule for Emerging Markets Debt - Blend accounts is 0.80% of the first $100 million and 0.70% of the balance. (This fee schedule may be presented in non-US local currency equivalents
based on prevailing exchange rates.) Actual account fees, inclusive of performance-based fees (if applicable) are used in the construction of composite net of fee performance unless otherwise noted. A complete list and
description of all Lazard composites is available upon request.
Benchmark Information
This composite’s benchmark is the JPM EMBI Global Div / JPM GBI-EM Global Div Blended Index, consisting of a monthly rebalanced, 50% / 50% split of the JP Morgan EMBI Global Diversified Index and the JP
Morgan GBI-EM Global Diversified Index. The JP Morgan EMBI Global Diversified Index is a uniquely-weighted version of the EMBI Global Index, which tracks total returns for US dollar-denominated debt
instruments issued by emerging market sovereign and quasi-sovereign entities. The EMBI Global Diversified Index limits the weights of those index countries with larger debt stocks by only including specified
portions of these countries’ eligible current face amounts of debt outstanding. The countries covered in the EMBI Global Diversified Index are identical to those covered by the EMBI Global Index. The JP Morgan
GBI-EM Global Diversified Index is a comprehensive, global local emerging markets index, and consists of regularly traded, liquid fixed-rate, domestic currency government bonds to which international investors can
gain exposure.
GIPS Compliance and Verification Status
Lazard Asset Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Lazard Asset Management
has been independently verified for the period of January 1, 1993 through December 31, 2017. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the
composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards.
Verification does not ensure the accuracy of any specific composite presentation. Lazard Asset Management is the “Firm” to which the GIPS Standards apply (Frankfurt office included in Firm definition as of January
1, 2003). GIPS is a registered trademark of CFA Institute. CFA Institute has not been involved in the preparation or review of this presentation. The composite creation date is October 2011.
Calendar Annualized
Since
QTD YTD 2017 2016 2015 2014 2013 2012 Q4 11 1 YR 3 YR 5 YR
Inception
Lazard Rate of Return (%; Gross of Fees) -8.82 -6.65 13.35 9.92 -7.97 -1.36 -5.67 20.21 3.28 -2.43 2.93 1.37 3.20
Lazard Rate of Return (%; Net of Fees) -9.00 -7.03 12.40 9.05 -8.69 -2.16 -6.45 19.24 3.12 -3.24 2.11 0.55 2.37
Benchmark (%; Rate of Return) -7.02 -5.78 12.74 10.16 -7.14 0.71 -7.10 17.21 2.56 -1.89 3.37 1.89 3.01
8.51 7.80 8.83 8.37 9.47 N/A N/A N/A
Composite Standard Deviation (3-yr. Ann.)
7.97 7.61 8.60 8.12 9.06 N/A N/A N/A
Benchmark Standard Deviation (3-yr. Ann.)
# of Portfolios 6 6 6 6 5 6 4 2 2
0.10 0.15 0.28 0.19 0.02 0.29 0.16 N/A 0.15
Composite Dispersion (Asset Wtd. Std. Dev.)
Composite Assets (USD Millions) 2057.4 2057.4 2146.1 1462.4 840.4 2605.1 1460.2 517.0 203.6
Total Firm Assets (USD Billions) 196.8 196.8 206.6 168.0 160.1 171.4 161.6 148.3 124.4
8 Lazard Asset ManagementGIPS Composite Information
Lazard Emerging Markets Debt - Total Return
Reporting Date: 30 June 2018
Composite Inception Date: 01 December 2010
Reporting Currency: U.S. Dollar
Composite Description
The composite returns represent the total returns of all fully discretionary portfolios with an Emerging Markets Debt - Total Return investment mandate. The Emerging Markets Debt - Total Return strategy has no
benchmark and uses a "best ideas" approach. The investment team looks across the entire EMD universe - hard currency sovereign debt, hard currency quasi-sovereign debt, local currency sovereign debt, local
currency quasi-sovereign debt corporate debt, etc. - positioning the portfolio in the specific asset classes and countries in which they see value. This is in contrast to the team’s benchmark-aware approaches, in which
they are overweighting/underweighting countries. The Emerging Markets Debt - Total Return strategy is a long-biased approach, that seeks to capture upside performance and minimize negative performance. The
strategy is allowed some leverage (up to 200% maximum gross exposure) and shorting. It has typically been run with a 60-90% net exposure and 100-140% gross exposure. The team may invest throughout the EMD
asset classes, but also has the ability to allocate tactically to cash if the team has no conviction on the market.
Calculation of Performance Returns
Additional information regarding policies for valuing portfolios, calculating performance, and preparing compliant presentations are available upon request. Net returns for Lazard mutual funds included in this
composite are net of all fees. The composite returns are reported net of foreign withholding taxes on dividends, interest and capital gains. The composite returns presented represent past performance and is not a
reliable indicator of future results, which may vary.
Fee Schedule
'Lazard’s standard fee schedule for Emerging Markets Debt - Total Return accounts is 0.75% of the first $100 million and 0.70% of the balance, and a performance-based fee consisting of 20% above a 5% absolute
hurdle. (This fee schedule may be presented in non-US local currency equivalents based on prevailing exchange rates.) Actual account fees, inclusive of performance-based fees (if applicable) are used in the
construction of composite net of fee performance unless otherwise noted. A complete list and description of all Lazard composites is available upon request.
Benchmark Information
There is no benchmark for this strategy as it has an absolute return investment objective.
GIPS Compliance and Verification Status
Lazard Asset Management claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. Lazard Asset Management
has been independently verified for the period of January 1, 1993 through December 31, 2017. The verification reports are available upon request. Verification assesses whether (1) the firm has complied with all the
composite construction requirements of the GIPS standards on a firm-wide basis and (2) the firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards.
Verification does not ensure the accuracy of any specific composite presentation. Lazard Asset Management is the “Firm” to which the GIPS Standards apply (Frankfurt office included in Firm definition as of January
1, 2003). GIPS is a registered trademark of CFA Institute. CFA Institute has not been involved in the preparation or review of this presentation. The composite creation date is December 2010.
Calendar Annualized
Since
QTD YTD 2017 2016 2015 2014 2013 2012 2011 Dec 10 1 YR 3 YR 5 YR
Inception
Lazard Rate of Return (%; Gross of Fees) -6.75 -6.28 7.39 8.95 -4.08 1.25 -0.26 13.33 1.78 1.45 -2.74 2.00 1.82 2.91
Lazard Rate of Return (%; Net of Fees) -6.93 -6.55 6.63 8.00 -4.83 0.35 -1.22 11.09 0.67 1.37 -3.37 1.24 1.01 1.87
Composite Standard Deviation (3-yr. Ann.) 5.22 4.47 5.28 5.34 5.84 6.59 N/A N/A N/A
# of Portfolios 6 6 6 6 5 3 3 1 1 1
Composite Dispersion (Asset Wtd. Std. Dev.) 0.21 0.20 0.27 0.21 0.02 0.07 N/A N/A N/A N/A
Composite Assets (USD Millions) 3509.5 3509.5 3852.8 3740.6 2881.5 2562.4 1384.5 655.5 330.4 45.4
Total Firm Assets (USD Billions) 196.8 196.8 206.6 168.0 160.1 171.4 161.6 148.3 124.4 140.6
9 Lazard Asset ManagementRisk Disclosures
The strategies invest primarily in emerging market debt positions. The strategies will generally invest in debt investments denominated in emerging market currencies. As such, an investment in the strategies is subject to the general risks
associated with fixed income investing, such as interest rate risk and credit risk, as well as the risks associated with emerging market investments, including currency fluctuation, devaluation and confiscatory taxation. The strategies may
use derivative instruments that are subject to counterparty risk.
Investments in global currencies are subject to the general risks associated with fixed income investing, such as interest rate risk, as well as the risks associated with non-domestic investments, which include, but are not limited to, currency
fluctuation, devaluation and confiscatory taxation. Furthermore, certain investment techniques required to access certain emerging markets currencies, such as swaps, forwards, structured notes, and loans of portfolio securities, involve
risk that the counterparty to such instruments or transactions will become insolvent or otherwise default on its obligation to perform as agreed. In the event of such default, an investor may have limited recourse against the counterparty
and may experience delays in recovery or loss.
The strategies will invest in securities of non-US companies and which trade on non-US exchanges. These investments may be denominated or traded in both Hard and Local currencies. Investments denominated in currencies other than
US dollars involve certain considerations not typically associated with investments in US issuers or securities denominated or traded in US dollars. There may be less publicly available information about issuers in non-US countries that
may not be subject to uniform accounting, auditing and financial reporting standards and other disclosure requirements comparable to those applicable to US issuers. 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.
An investment in bonds carries risk. If interest rates rise, bond prices usually decline. The longer a bond’s maturity, the greater the impact a change in interest rates can have on its price. If you do not hold a bond until maturity, you may
experience a gain or loss when you sell. Bonds also carry the risk of default, which is the risk that the issuer is unable to make further income and principal payments. Other risks, including inflation risk, call risk, and pre-payment risk, also
apply. High yield securities (also referred to as “junk bonds”) inherently have a higher degree of market risk, default risk, and credit risk. 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 markets 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
markets countries can be extremely volatile; performance can also be influenced by political, social, and economic factors affecting companies in these countries. Derivatives transactions, including those entered into for hedging purposes,
may reduce returns or increase volatility, perhaps substantially. Forward currency contracts, and other derivatives investments are subject to the risk of default by the counterparty, can be illiquid and are subject to many of the risks of, and
can be highly sensitive to changes in the value of, the related currency or other reference asset. As such, a small investment could have a potentially large impact on performance. Use of derivatives transactions, even if entered into for
hedging purposes, may cause losses greater than if an account had not engaged in such transactions
All index data is shown for illustrative purposes only and not intended to reflect the performance of any product or strategy managed by Lazard. 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.
This document reflects the views of Lazard Asset Management LLC or its affiliates (“Lazard”) based upon information believed to be reliable as of the publication date. There is no guarantee that any forecast or opinion will be realized. This
document is provided by Lazard Asset Management LLC or its affiliates (“Lazard”) for informational purposes only. Nothing herein constitutes investment advice or a recommendation relating to any security, commodity, derivative,
investment management service or investment product. Investments in securities, derivatives and commodities involve risk, will fluctuate in price, and may result in losses. Certain assets held in Lazard’s investment portfolios, in particular
alternative investment portfolios, can involve high degrees of risk and volatility when compared to other assets. Similarly, certain assets held in Lazard’s investment portfolios may trade in less liquid or efficient markets, which can affect
investment performance. Past performance does not guarantee future results. The views expressed herein are subject to change, and may differ from the views of other Lazard investment professionals.
This document is intended only for persons residing in jurisdictions where its distribution or availability is consistent with local laws and Lazard’s local regulatory authorizations. The communication you received is being issued by
Lazard Asset Management LLC and its following affiliates, subject to the noted conditions and limitations:
Australia: Issued by Lazard Asset Management Pacific Co., ABN 13 064 523 619, AFS License 238432, Level 39 Gateway, 1 Macquarie Place, Sydney NSW 2000, which is licensed by the Australian Securities and Investments
Commission to carry on a financial services business. Canada: Issued by Lazard Asset Management (Canada) Inc., 30 Rockefeller Plaza, New York, NY 10112 and 130 King Street West, Suite 1800, Toronto, Ontario M5X 1E3, a
registered portfolio manager providing services to non-individual permitted clients. Dubai: Issued and approved by Lazard Gulf Limited, Gate Village 1, Level 2, Dubai International Financial Centre, PO Box 506644, Dubai, United Arab
Emirates. Registered in Dubai. International Financial Centre 0467. Authorised and regulated by the Dubai Financial Services Authority to deal with Professional Clients only. EU Member States: Issued by Lazard Asset Management
(Deutschland) GmbH, Neue Mainzer Strasse 75, D-60311 Frankfurt am Main. Hong Kong: Issued by Lazard Asset Management (Hong Kong) Limited (AQZ743), One Harbour View Street, Central, Hong Kong. Lazard Asset Management
(Hong Kong) Limited is a corporation licensed by the Hong Kong Securities and Futures Commission to conduct Type 1 (dealing in securities) and Type 4 (advising on securities) regulated activities only on behalf of “professional investors”
as defined under the Hong Kong Securities and Futures Ordinance (Cap. 571 of the Laws of Hong Kong) and its subsidiary legislation. Japan: Issued by Lazard Japan Asset Management K.K., ATT Annex 7th Floor, 2-11-7 Akasaka,
Minato-ku, Tokyo 107-0052 (please visit www.lazardassetmanagement.com/japaninfo for additional disclosures required under the Financial Instruments and Exchange Act of Japan). Korea: Issued by Lazard Korea Asset Management Co.
Ltd., 10F Seoul Finance Center, 136 Sejong-daero, Jung-gu, Seoul, 04520. Peoples Republic of China: Issued by Lazard Asset Management. Lazard Asset Management does not carry out business in the P.R.C and is not a licensed
investment adviser with the China Securities Regulatory Commission or the China Banking Regulatory Commission. This document is for reference only and for intended recipients only. The information in this document does not constitute
any specific investment advice on China capital markets or an offer of securities or investment, tax, legal or other advice or recommendation or, an offer to sell or an invitation to apply for any product or service of Lazard Asset
Management. Singapore: Issued by Lazard Asset Management (Singapore) Pte. Ltd., 1 Raffles Place, #15-02 One Raffles Place Tower 1, Singapore 048616. Company Registration Number 201135005W. Lazard Asset Management
(Singapore) Pte. Ltd. provides services only to “institutional investors” or “accredited investors” as defined under the Securities and Futures Act, Chapter 289 of Singapore. Switzerland: Issued by Lazard Asset Management Schweiz AG,
Usteristrasse 9, CH-8001 Zurich. United Kingdom: Issued or approved by Lazard Asset Management Ltd., 50 Stratton Street, London W1J 8LL. Registered in England Number 525667. Authorised and regulated by the Financial Conduct
Authority (FCA); providing services only to persons classified as eligible counterparties or professional clients under the rules of the FCA. United States: Issued by Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, NY
10112.
10 Lazard Asset ManagementYou can also read
