Lazard International Quality Growth Portfolio Q4 2024 Commentary

2025-03-20 06:50:00 ET

Summary

• International markets faced currency headwinds, with the MSCI EAFE Index seeing significant quarterly declines due to a stronger dollar post-US election.
• Lazard International Quality Growth Portfolio outperformed benchmarks, driven by strong stock selection in emerging markets and Ireland, and lack of exposure to underperforming materials sectors.
• Positive contributors included Taiwan Semiconductor Manufacturing and Ireland-based global insurance broker, while Japanese stocks like Shimano and SMS detracted from returns.
• We remain committed to investing in high-quality companies with sustainable competitive advantages, focusing on fundamentals and long-term potential amidst varying economic scenarios.

Market Overview

• International markets fell slightly in the fourth quarter in local terms.
• However, significant currency headwinds drove US dollar ( USDOLLAR , DXY ) returns in Europe, Australasia, and the Far East (EAFE) down about 8%.
• Driven by a weaker yen, Japan outperformed by 4.5% (in USD terms) 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.

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