Lazard Seizes International Equity Opportunities Amid Rising Global Demand in 2025
- Lazard Asset Management is focusing on international equities, targeting sectors like European banks and semiconductor manufacturers.
- Paul Moghtader leads Lazard's international equity strategy with the successful Lazard International Dynamic Equity ETF.
- The ETF's rigorous investment approach emphasizes valuation metrics and includes significant holdings in financial and semiconductor stocks.
Lazard Capitalizes on Rising Demand for International Equities in 2025
As the financial landscape evolves in 2025, Lazard Asset Management is strategically positioning itself to meet the burgeoning demand for international equities. Portfolio managers at Lazard are currently identifying lucrative opportunities in sectors such as European and Asian banks, semiconductor manufacturers, and global gold mining companies. This shift reflects a broader trend among investors who are diversifying their portfolios to mitigate risks stemming from market volatility, geopolitical tensions, and high valuations in the U.S. market, particularly as the dollar weakens. The iShares MSCI ACWI ex US ETF, for example, has achieved an impressive return of nearly 23% this year, significantly outpacing the SPDR S&P 500 ETF, which only returns 11%.
At the helm of Lazard's international equity strategy is Paul Moghtader, managing director of the Lazard Advantage Team and a seasoned quantitative portfolio manager with nearly two decades of experience in international investments. Under his guidance, the Lazard International Dynamic Equity ETF has emerged as a key player in this space, boasting $422 million in assets and a coveted five-star Morningstar rating. With a competitive expense ratio of just 0.40%, the ETF is designed to attract both seasoned investors and those looking to explore international markets. Moghtader emphasizes the mounting interest in international exposure, driven by increasing market volatility and multifaceted risks that investors encounter today.
The investment strategy employed by Lazard is both rigorous and nuanced, utilizing a multi-faceted approach to stock selection. This includes a comprehensive analysis of valuation metrics, growth potential, quality of companies, and sentiment indicators. Specific signals, such as price-to-earnings ratios and balance sheet stability, guide their investment decisions. The ETF, trading under the ticker "IEQ," features notable holdings such as Taiwan Semiconductor Manufacturing, BNP Paribas, Novartis, Tencent Holdings, and Samsung Electronics. Moreover, the fund is overweight in financial stocks, particularly BNP Paribas and Japan Post Bank, aligning with Lazard's proprietary models that identify attractive themes, including Canadian gold miners and European financial institutions.
In addition to the successful launch of the Lazard International Dynamic Equity ETF, the company underscores its commitment to providing high-quality investment products that resonate with current market dynamics. As investors continue to seek diversification in the face of uncertainty, Lazard's proactive approach to international equities positions the firm favorably for ongoing growth in this segment. With a keen eye on emerging trends, Lazard is set to navigate the complexities of global markets, ensuring that it remains a leader in asset management.