Bermuda-listed Lazard Asset Management has launched an emerging markets managed volatility strategy.
The Ucits fund aims to produce “stable” equity returns with total risk well below market levels through stocks selected using a quant-based, multi-factor process.
Through a diversified portfolio, the Lazard Emerging Markets Managed Volatility Fund seeks to exceed market-cap returns annually over a market cycle, with 20% to 30% lower risk, according to the firm.
The investment process favours companies with “desirable fundamentals” such as ESG considerations and below-average risk characteristics.
Susanne Willumsen, joint portfolio manager alongside Paul Moghtader, said: “Low volatility and emerging market equities are words that are rarely grouped in the same sentence. The terms, however, are not mutually exclusive.
“We believe investors stand to benefit from a low-volatility allocation in emerging markets as it can result in more diversified economic exposures, the avoidance of market concentration risk and the diversification of holdings from a market cap-weighted benchmark,” she added.
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