Lazard Reports August 2024 Assets Under Management

Rhea-AI Summary

Lazard (NYSE: LAZ) reported preliminary assets under management (AUM) of approximately $244.3 billion as of August 31, 2024. The month saw net outflows of $7.5 billion, market appreciation of $2.8 billion, and foreign exchange appreciation of $3.0 billion. Notably, gross outflows included about $7 billion from a single client restructuring its developed market assets into passive strategies.

The AUM breakdown as of August 31, 2024, was: Equity at $188,764 million, Fixed Income at $46,633 million, and Other at $8,944 million. Compared to July 31, 2024, Equity AUM decreased, while Fixed Income and Other categories saw increases.

Positive

• Foreign exchange appreciation of $3.0 billion
• Market appreciation of $2.8 billion
• Increase in Fixed Income AUM from $45,775 million to $46,633 million
• Growth in Other AUM category from $8,153 million to $8,944 million

Negative

• Net outflows of $7.5 billion
• Gross outflows of approximately $7 billion from a single client
• Decrease in total AUM from $246,104 million to $244,341 million
• Decline in Equity AUM from $192,176 million to $188,764 million

Insights

Financial Analyst

The $244.3 billion AUM reported by Lazard for August 2024 reveals a slight decrease from July's $246.1 billion. The net outflows of $7.5 billion are concerning, especially the $7 billion outflow from a single client. This highlights the risk of concentrated client bases in asset management. However, the impact was partially offset by market appreciation of $2.8 billion and foreign exchange gains of $3.0 billion. The shift towards passive strategies by the large client reflects an ongoing industry trend that Lazard must navigate. The growth in fixed income AUM from $45.8 billion to $46.6 billion is a positive sign, possibly indicating a defensive positioning by investors.

Market Research Analyst

Lazard's August AUM report reflects broader market dynamics. The $2.8 billion market appreciation suggests overall positive market performance, benefiting equity-heavy portfolios. The $3.0 billion foreign exchange appreciation indicates favorable currency movements for international holdings. However, the significant outflow to passive strategies from a major client underscores the continuing challenge active managers face from lower-cost index funds. This trend could pressure Lazard's fee structure and profitability. The increase in 'Other' AUM from $8.2 billion to $8.9 billion might indicate growing interest in alternative investments, a potential area for Lazard to expand and differentiate its offerings.

NEW YORK--(BUSINESS WIRE)-- Lazard, Inc. (NYSE: LAZ) reported today that its preliminary assets under management (“AUM”) as of August 31, 2024 totaled approximately $244.3 billion. The month’s AUM included net outflows of $7.5 billion, market appreciation of $2.8 billion and foreign exchange appreciation of $3.0 billion. Gross outflows included approximately $7 billion from one client that restructured its developed market assets into passive strategies.

LAZARD, INC.
ASSETS UNDER MANAGEMENT (“AUM”)
(unaudited)
($ in millions)

		As of:
		August 31,	July 31,
		20241	2024
Equity		$188,764	$192,176
Fixed Income		46,633	45,775
Other		8,944	8,153
Total AUM		$244,341	$246,104

(1) Preliminary – subject to adjustment

About Lazard
Founded in 1848, Lazard is one of the world's preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals. For more information, please visit www.lazard.com.

Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” or “continue,” and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our strategies, business plans and initiatives and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements.

These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A “Risk Factors,” and also discussed from time to time in our reports on Forms 10-Q and 8-K, including the following:

• A decline in general economic conditions or the global or regional financial markets;
• A decline in our revenues, for example due to a decline in overall mergers and acquisitions (M&A) activity, our share of the M&A market or our assets under management (AUM);
• Losses caused by financial or other problems experienced by third parties;
• Losses due to unidentified or unanticipated risks;
• A lack of liquidity, i.e., ready access to funds, for use in our businesses; and
• Competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels.

Although we believe the statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations and we do not intend to do so.

Lazard, Inc. is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, Lazard and its operating companies use their websites, and other social media sites to convey information about their businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of assets under management in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can link to Lazard and its operating company websites through www.lazard.com.

LAZ-CPE

View source version on businesswire.com: https://www.businesswire.com/news/home/20240912457375/en/

Investor:

Alexandra Deignan +1 212 632 6886

alexandra.deignan@lazard.com

Media:

Zoe Butt +44 20 7448 2802

zoe.butt@lazard.com

Aziz Nayani +1 212 632 6042

aziz.nayani@lazard.com

Source: Lazard, Inc.

FAQ

What was Lazard's total AUM as of August 31, 2024?

Lazard's preliminary total assets under management (AUM) as of August 31, 2024, were approximately $244.3 billion.

How much net outflow did Lazard (LAZ) experience in August 2024?

Lazard experienced net outflows of $7.5 billion in August 2024.

What was the market appreciation for Lazard's AUM in August 2024?

Lazard reported a market appreciation of $2.8 billion for its assets under management in August 2024.

How much foreign exchange appreciation did Lazard see in August 2024?

Lazard saw a foreign exchange appreciation of $3.0 billion in August 2024.

What was the main reason for Lazard's significant outflows in August 2024?

The significant outflows were mainly due to approximately $7 billion from one client that restructured its developed market assets into passive strategies.