Lazard US Mid Cap Equity Portfolio Case Study Example | Topics and Well Written Essays - 2250 words

Lazard US Mid Cap Equity Portfolio - Case Study Example These kind of invest in stocks of companies with solid financial base are return patterns Income equity funds: invest in a mix of bonds and dividend paying stocks as they also target current income and capital growth Balanced funds: have long term objectives and emphasize on capital growth, and current income. Invest in bonds, stocks, and short term securities, and always ensure the right hedging against huge fluctuations in short term investment options. Bond funds: designed to meet the current income requirements of shareholder, and they invest primarily in corporate and government bonds and T-bills Money market funds: invest in securities such as commercial papers, T-bills, certificates of deposit and other stable but monetary related securities. These are currency related investments and no guarantees are made on such funds. Target date funds: These include retirement and pension funds as they are the major types in this category with the date of maturity of the fund known. These kinds of funds are made for strictly long term investments. Lazard US Mid Cap Equity Portfolio Background LZMIX, ticker for the Lazard US mid cap portfolio for institutional shares, is a fund under the hazard investment fund. The fund is a balanced fund for institutional investors that were created in 1997 for this primary reason. The fund as at the 4/30/2012, the net assets of Lazard mid cap Equity portfolio was approximately values at $105.7 million, including $58.2 million worth of shares held institutionally. Recent performance The fund has a yield rate of 0.28% with no loadings applicable to the investment. Expenses incurred in transactions are given at the rate of 0.92%. Morningstar rates the management fee as average level, showing it in line with industry charges. LZMIX turnover is quoted at 83%, while the minimum investment an investment can make is $100000. The fund performance ranges as other in the institutional investment portfolio; weighted against the Russell midcap index is just 0.57 point shy in the period of it has traded. However, in the short run, the observation is not as quite. The funds 5 year valuation gives a negative posting making against its benchmark. The one year measure is also a less value compared to the Russell index. There company funds performance is more of a cycle with high peaks and low troughs, just as the options it invests in. The year to date (2012 to date) gives a strong index value, but not the month- end value, that oscillates back to the negative, showing signs of high volatility in the investment options and maybe weakness in the fund management. Mutual Fund The Lazard US Mid cap equity portfolio is one of the funds in the Hazardnet group that hope to generate strong returns and outshine peers in the market of institutional investment and set the benchmark for the complete market cycle. The fund has a bottom-up loom to stock selection, as is shown by all portfolios held by HazardNet. They conduct the fundamental analysis before investing, with emphasis on sustainability of returns. This is ensured by though analysis of the accounting employed by the companies and the historical statistics of benefits offered, that is, high P/E, dividend yield and stability of stock. Quantitative research is done to ensure that the target company’