Lazard's (LAZ) AUM Increases In November On Higher Equity

Lazard Ltd. (NYSE:LAZ) recorded slight rise in preliminary assets under management (AUM), as of Nov 30, 2019, from the prior month. Total AUM came in at $236.7 billion, up from the October 2019 figure of $235.8 billion.

November AUM displayed a $3.8-billion market appreciation. The positives were fully offset by net outflows of $1.5 billion and unfavorable foreign-exchange impact of $1.4 billion.

Lazard’s equity AUM at the end of November edged up marginally from the prior month to $194.9 billion. However, other assets declined 4.3% to $4.5 billion. Fixed income AUM decreased slightly on a sequential basis to $37.3 billion.

Our Viewpoint

Lazard is well positioned to grow organically, driven by strength in its Financial Advisory and Asset Management segments. However, absence of continued growth in equity markets and stringent regulations remain headwinds.

The stock has gained around 11.8% in the past three months against 5.6% decline recorded by the industry.

Lazard currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Among other investment managers, Invesco’s (NYSE:IVZ) preliminary month-end AUM of $1,201.9 billion for November 2019 increased marginally from the prior month. The rise was primarily driven by favorable market returns, partially offset by net long-term outflows and unfavorable impact of foreign exchange.

Cohen & Steers (NYSE:CNS) reported preliminary AUM of $71.2 billion as of Nov 30, 2019, down 1.1% from the prior-month level. Net inflows of $630 million were offset by market depreciation of $656 million and distributions of $758 million.

Franklin Resources (NYSE:BEN) announced preliminary AUM by its subsidiaries of $691.3 billion for November 2019. The results displayed a marginal decrease from $693.1 billion recorded as of Oct 31, 2019. Net outflows were partly offset by net market gains. Further, the reported figure inched up 1.2% year on year.

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