Lazard Reports January 2024 Assets Under Management
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Insights
The reported preliminary assets under management (AUM) of Lazard, Inc. reflects a modest decline from the previous month, which could be indicative of broader market trends or firm-specific challenges. The reduction in AUM due to net outflows is a critical metric, as it suggests investors are withdrawing capital. This could be due to a variety of reasons such as performance issues, changes in investor risk appetite, or competitive dynamics. The foreign exchange depreciation also played a role, although this is often seen as an uncontrollable external factor. On the other hand, the market appreciation, despite being lower than the outflows, shows some resilience in the asset values managed by the firm.
For stakeholders, the short-term implications may include concerns over the firm's ability to attract and retain capital, which can impact revenue from management fees. Long-term considerations would involve analyzing the firm's strategies to mitigate outflows and currency risks. It is also essential to compare these figures with industry norms to assess Lazard's performance relative to peers.
The AUM dynamics reported by Lazard, Inc. can provide insights into investor sentiment and market conditions. The net outflows could signal a trend where investors are reallocating their investments, possibly moving towards alternative assets or competitors. This shift could be driven by various factors, including market volatility, geopolitical concerns, or sector-specific issues. The market appreciation component, while positive, was not sufficient to offset outflows, suggesting a challenging investment environment.
Analyzing the distribution of AUM across equity and fixed income can reveal investor preferences and risk tolerance. The larger proportion in equities suggests a continued appetite for potentially higher returns despite higher risk, while the fixed income segment indicates a presence of investors seeking stability. Monitoring these allocations over time can help forecast future trends in asset management.
The foreign exchange depreciation affecting Lazard's AUM is a reflection of currency market volatility, which can have a significant impact on multinational asset managers. This depreciation can erode the value of assets denominated in foreign currencies when converted back to the reporting currency. It is important to consider the broader economic context, such as inflation rates, interest rate policies and international trade relations, as these factors influence exchange rates.
Additionally, the interplay between the market appreciation and net outflows is indicative of the underlying economic conditions. While assets may appreciate due to positive market performance, investor confidence, as evidenced by net outflows, may not align with this growth. This discrepancy could be due to macroeconomic uncertainties or sector-specific issues that lead investors to reassess their portfolio allocations.
LAZARD, INC. |
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ASSETS UNDER MANAGEMENT (“AUM”) |
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(unaudited) |
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($ in millions) |
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As of: |
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January 31, |
December 31, |
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20241 |
2023 |
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Equity |
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Fixed Income |
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47,398 |
48,107 |
Other |
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8,088 |
8,406 |
Total AUM |
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(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
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/20240212603971/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
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