MTUAF - Lazard International Equity Select Portfolio Q4 2024 Commentary
2025-03-20 05:35:00 ET
Summary
- International markets faced currency headwinds, with Japan outperforming due to a weaker Yen. Banks excelled, while semiconductors lagged.
- Lazard International Equity Select Portfolio underperformed due to pharmaceutical and beverage stocks, and currency impacts on banks.
- Positive contributors included Compass, MTU Aero Engines, Recruit, and Taiwan Semiconductor Manufacturing, driven by strong earnings and growth prospects.
- Outlook for 2025 emphasizes fundamentals and valuations, with potential M&A activity and balanced portfolio positioning for diverse alpha sources.
Market Overview
- International markets fell slightly in the quarter in local terms
- But significant currency headwinds drove US dollar ( USDOLLAR , DXY ) EAFE returns down about 8%
- Driven by a weaker Yen, Japan outperformed by 4.5% (in USD) for both the quarter and year
- Semiconductors were among the worst performers while banks were among the top performers for both the quarter and year
- Momentum outperformed in both the quarter and the year and was driven predominantly by low quality in Japan