Mid Wynd’s board has decided that, in the wake of personnel changes at Artemis, it intends to appoint Lazard Asset Management LLC as its alternative investment fund manager (AIFM) and Lazard Asset Management Limited as its investment manager. In conjunction with the appointment of Lazard, the company intends to appoint a third-party company secretary and administrator.
Consultancy firm Barnett Waddingham assisted the board in a review of the investment management arrangements. The board invited proposals from a number of experienced fund management groups before selecting Lazard.
Lazard
Lazard is a global investment firm, currently managing approximately £160bn of assets for professional and institutional clients which include charities, foundations, family offices, high-net worth individuals, and trusts.
Lazard’s Global Quality Growth strategy – which aims to invest in some of the best businesses in the world, companies which the team believe have sustainable competitive advantages that can generate consistently high returns on capital and that can reinvest in their business to drive future growth.– was considered to align well with the company’s ethos – investing at the right valuations, in companies which have potential to compound investors’ capital at attractive and sustainable rates. The investment objective and policy of the company will not change. The strategy is supported by Lazard’s extensive fundamental research team of global sector specialists, with more than 300 investment personnel and offices in 24 cities across 17 countries.
Over the ten-year period to end March 2023, the Lazard Global Quality Growth strategy delivered an annualised gross return of 11.10% compared to the MSCI World All Countries World Index return of 8.06%.
Management team
Lazard uses a team-based approach to portfolio management which it feels allows it to deliver robust and consistent performance over time. The Lazard team have worked together on this strategy for over 10 years. The principal portfolio managers for the company are expected to be:
Louis Florentin-Lee
Managing director and global equity portfolio manager/analyst, and co-manager of the Lazard Global Quality Growth strategy. Louis was formerly the co-portfolio manager/analyst for the Lazard European Explorer Fund between 2004 and 2010. Louis began working in the investment industry in 1996.
Barnaby Wilson
Managing director and global equity portfolio manager/analyst, and co-manager of the Lazard Global Quality Growth strategy. Barnaby began working in the investment industry in 1998.
Management fee change
The headline level of the investment management fee is lower and whilst there will be separate charges for company secretarial/administration services the company’s ongoing charges figure is expected to reduce under the new arrangements.
Lazard will receive an annual management fee of 0.40% of the market cap up to £250m; 0.38% on the next £250m; and 0.32% above £500m. Lazard will waive its fee for the first three months under the new investment management agreement. The investment management agreement shall be terminable by either party serving six months’ notice.
Timing
Subject to completion of contract and relevant FCA notifications, it is expected that Lazard be appointed as the company’s alternative investment fund manager with effect from Q4 2023.
MWY : Lazard takes on Mid Wynd