HEAD-TO-HEAD: Lazard versus T Rowe Price

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Source: FE Fundinfo. Three-year cumulative returns in US dollars.

Performance

The Lazard strategy has generated positive returns, including the years as a separately managed account (SMA) in four out of the past five calendar years on a discrete basis, the strongest of which was 2019, with the fund returning 33.9%, according to McDermott. Its sole year of underperformance came in 2018, when the fund fell 7.57%.

It has generated a 60.72% three-year cumulative return, according to FE Fundinfo, underperforming its S&P 500 benchmark (77.71%) and its sector average (65.95%). Its annualised volatility of 21.96% during the same period is slightly higher than both the index (21.25%) and the peer average (20.23%),

The T Rowe fund has returned over 205% during the past five years, producing positive returns each year on a discrete basis. The strongest performance was in 2020 and 2017, with returns of 37.70% and 34.6% respectively, according to FE Fundinfo.

It has achieved a 90.62% three-year cumulative return, with annualised volatility of 21.45%, FE Fundinfo data shows.

“The fund has had a long and consistent track record, with the vast majority of performance driven by stock selection,” said McDermott.

“This has come across different sectors, showing the strength of the analyst resource, which means that the fund has not been reliant on any one sector to drive performance,” he added.

“The fund has done well in a variety of markets, but has underperformed when value stocks have outperformed. Telecoms, media and technology companies have traditionally formed the largest sector weighting in the portfolio, followed by consumer product. Therefore, it is no surprise to see the FAANGs dominating the top 10 holdings,” he said.

Discrete calendar year performance

Source: FE Fundinfo. Annual returns in US dollars. *31 Dec 2020 – 10 November 2021

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