Lazard Reports Sequential Rise in January AUM on Net Inflows

Earlier this week, Lazard Ltd LAZ reported 7.1% rise in assets under management (AUM) as of Jan 31, 2019, from the previous month. Preliminary month-end AUM came in at $230 billion, up from the December 2018 figure of $214.7 billion.

January AUM displayed $12.7 billion market appreciation and net inflows of $0.7 billion. Notably, positive foreign exchange impact of $1.8 billion was another favorable factor.

Lazard’s equity AUM at the end of January climbed 7.6% from the prior month to $190.4 billion. Fixed income AUM inched up 5.5% sequentially to $34.7 billion. Further, other assets increased 1.4% to $4.9 billion.

Lazard is well positioned to grow organically, driven by strength in its Financial Advisory and Asset Management segments. Further, with operations at a global level, the company has potential to outperform its peers. Nonetheless, absence of continued growth in equity markets and stringent regulations remain headwinds.

Shares of the company have lost around 23% over the past six months compared with the 10.7% decline recorded by the industry.

Lazard currently carries a Zacks Rank #5 (Strong Sell).

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

Competitive Landscape

Among other investment managers, Cohen & Steers CNS reported preliminary AUM of $60 billion as of Jan 31, 2019, up 9.5% from the prior-month level. Market appreciation of $5 billion and net inflows of $427 million, partly offset by distributions of $200 million, drove this upswing.

Invesco Ltd.’s IVZ AUM as of Jan 31, 2019, came in at $930.6 billion, up nearly 4.8% from the previous month. Favorable market returns, higher money market AUM and reinvested distributions were primary reasons behind the rise in total AUM. Moreover, foreign exchange boosted the month’s AUM by $4.9 billion. However, these were partially offset by net long-term outflows and non-management fee earning AUM outflows.

Franklin Resources BEN announced preliminary AUM by its subsidiaries of $678.3 billion for January 2019. Results display 4.4% rise from $649.9 billion recorded as of Dec 31, 2018. Net market gains, partially offset by net outflows, led to this upside. However, the figure dipped 12% from the previous year.

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Invesco Ltd. (IVZ) : Free Stock Analysis Report
 
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Lazard Ltd (LAZ) : Free Stock Analysis Report
 
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