(Video: Mimi Productions)
Lazard Asset Management has boots on the ground in 14 countries and a staff of 70 evaluating a bottom-up approach to emerging markets. The winner of the 2017 SMA Managers of the Year award in the global and international category returned 22.37% in 2016, and has an annualized return of over 11% since inception in 2004.
“We do invest in places that ... might be highly risky, but we think [that] in our process, we take that into account,” according to James Donald, managing director and portfolio manager. However, he added that the value investment tends to be relatively conservative for the emerging market world because “we don't like to pay high prices for securities.”
Emerging markets “typically have high political risk and high governance risk; protection is not as high as it would typically be in most developed countries, so emerging markets aren't for everyone,” Donald said.
--- Read The Long Game: 2017 SMA Managers of the Year for more from this year's winners.