New perspectives from 175 years’ experience

The Lazard Group turns 175 this year. Its unique asset management approach is exemplified by its flexible bond fund and its new Article 9 green bond portfolio.

Luxembourg’s institutional investors have access to the expertise of Lazard Asset Management and Lazard Frères Gestion via the Brussels office of Lazard Fund Managers, which is headed by Bram Op de Beeck. “Our approach is based on commitment to active fund management driven by fundamental analysis, which delivers performance across all asset classes,” he said. It is an approach that actively seeks to respond to market events. “Investment strategies are adapted in real time to meet the challenges of often swiftly-changing investment environments,” he added. “Lazard is proud to have advised generations of clients through major changes in global markets.”

Indeed, it has been 175 years since the Lazard Group was founded in the US by a family of French émigrés, and has since acquired deep institutional knowledge of managing during crises. Now headquartered in New York, the group has 3,000 employees worldwide, of which more than 1,000 work to manage around $200bn in assets. The group’s other specialisation is financial advisory, notably regarding M&A and strategy, sovereigns, restructuring, capital markets and more.

“Our other key focal point is that we are truly a fundamental house, with more than 250 global analysts in equities, fixed income and alternative management.”

The Brussels office serves B2B relationships in Luxembourg and Belgium. Mr Op de Beeck says the Lazard Credit pportunities Fund has been of particular interest to this market given its strong returns during the market turbulence of recent years. There is also excitement for the Lazard Global Green Bond Opportunities Fund, which is classified as an article 9 impact fund under the SFDR.

“The bond fund is an absolute return fund, with a flexible and unconstrained fixed income portfolio,” explained Eléonore Bunel, head of fixed income and managing director at Lazard Frères Gestion, Paris. She has been the lead portfolio manager of this fund since 2018. “We work to generate performance in any market cycle using an unconstrained approach featuring significant tactical leeway,” she said.

“The fund’s reactivity is based on the use of interest rate and credit derivates, and high levels of liquidity, as well as variable hedging

1848 and credit risk duration,” she added. Investments are made in everything from sovereign debt and investment grade paper, through to high yield and emerging debt securities, all hedged by index futures contracts.

This proved to be a fruitful strategy last year. When many in the market were wrong-footed by persistent inflation and sharply rising interest rates, Ms Bunel and her team mapped out a path that resulted in a 5.4% return in 2022. “We believed since spring 2021 that rates would rise, as inflation was not temporary and central banks were probably late,” she said.

“This is an example of our approach using our own research, which gives us greater capacity to

1 Service

Lazard is an asset management company and a strategic/financial advisory firm.

175 Years

The group has its roots in New Orleans, being founded 175 years ago by French émigrés: Alexandre, Lazare and Simon Lazard.

3,000

They moved into banking in 1850 and asset management in 1970, with the group now employing 3,000 people.

26 Countries

A publicly listed firm, it has offices in 41 cities in 26 countries, including Brussels.

deviate from market consensus,” she said. Moreover, this has not been a one-off approach, with the Lazard Credit Opportunities Fund delivering a 36% cumulative net growth since Ms Bunel started managing the portfolio in 2018.

Her team launched the Lazard Global Green Bond Opportunities fund last September and they have registered it as an impact Article 9 product with the French regulator, the AMF. “We use the same principles and research here as with our flagship fund. For instance, even if we see a chemicals company making progress on ESG, we will avoid it now, as we are currently negative on this sector,” she said.

1970

Development of asset management in the New York branch.

1995

Creation of Lazard Frères Gestion in Paris.

2005

Lazard is listed on the New York Stock Exchange. Lazard Asset Management and Lazard Frères Gestion became subsidiaries of Lazard Ltd.

Eléonore Bunel, Head of Fixed Income, Managing Director, Lazard Frères Gestion, Paris, is the portfolio manager of the Lazard Credit Opportunities Fund, a “flexible and unconstrained fixed income portfolio”. She is one of around 250 analysts in the group, with each conducting original market analysis and research.

2017

Lazard Asset Management and Lazard Frères Gestion manage over $200 billion worldwide.

2022

Launch of the first sustainable “Article 9” SFDR funds by Lazard Frères Gestion.