Lazard Retirement Emerging Markets Equity Portfolio Q4 2024 Commentary

2025-02-25 21:21:00 ET

Summary

• In the fourth quarter, the Emerging Markets Equity Portfolio retreated in absolute terms and underperformed its benchmark, the MSCI Emerging Markets Index.
• Higher-than-index exposures to the financials sector and to Hungary contributed.
• Stock selection in the information technology and communication services sectors, as did stock selection in the South Africa and India.

Market Overview

Equity markets in the developing world, as measured by the MSCI Emerging Markets Index, tumbled 8.0% in the fourth quarter amid a slew of risk factors, including a second unpredictable Trump administration that brings with it the threat of higher US tariffs and the possibility of faster US economic growth, as well as challenges in heavyweight emerging economies such as China. The US dollar strengthened considerably in the fourth quarter, and the US stock market rose sharply until late in the year, when investors engaged in profit-taking. Notably, November saw a significant sell-off of emerging markets equities, as investors rotated towards the US stock market....

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