Lazard Reports December 2023 Assets Under Management
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Insights
Lazard's report of preliminary assets under management (AUM) at approximately $246.7 billion as of December 31, 2023, reflects a significant uptick from the prior month. The increase in AUM can be attributed to a combination of market appreciation, foreign exchange gains and net inflows. Market appreciation, which accounts for $8.5 billion, suggests a positive performance of underlying investments. Additionally, the $2.0 billion in foreign exchange appreciation indicates a favorable currency impact, which is noteworthy given the recent volatility in currency markets.
Net inflows of $0.2 billion, though modest, are a critical indicator of investor confidence and the firm's ability to attract new capital. When evaluating the implications for stakeholders, the increase in AUM is generally seen as a positive signal, often correlating with potential increases in management fee revenue. However, it is essential to monitor whether these inflows are sustainable or if they represent a short-term trend.
The reported increase in AUM for Lazard is a reflection of broader market trends, including equity and fixed income performance. The equity component, which stands at $190.1 billion, has shown a substantial increase, suggesting that Lazard's equity-focused strategies may be well-aligned with the current market conditions. It is important to analyze the sectors and geographies contributing to this growth to understand the potential risks and opportunities.
The fixed income and other categories have also seen growth, which may indicate a diversified investment approach. Investors and analysts should consider the potential impact of changing interest rates and economic conditions on these asset classes. Long-term sustainability of AUM growth will depend on Lazard's ability to adapt to market shifts and maintain performance across its various investment strategies.
The report from Lazard comes at a time when global financial markets are navigating through a complex economic landscape, marked by inflationary pressures and geopolitical uncertainties. The noted foreign exchange appreciation is particularly interesting, as it could be reflective of currency market dynamics and central bank policies. These factors could influence investor sentiment and capital flows across borders.
In the long term, the health of the economy will play a pivotal role in asset management firms' AUM. Economic expansion typically supports asset prices, while contraction can lead to market corrections. Stakeholders should consider macroeconomic indicators and policy decisions that could affect market valuations and, consequently, asset management performance.
LAZARD, INC.
ASSETS UNDER MANAGEMENT (“AUM”)
(unaudited)
($ in millions)
|
|
As of: |
|
|
December 31, |
November 30, |
|
|
20231 |
2023 |
|
Equity |
|
|
|
Fixed Income |
|
48,107 |
46,491 |
Other |
|
8,406 |
8,047 |
Total AUM |
|
|
|
(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
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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/20240111528898/en/
Investors:
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.
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