Lazard's October AUM Declines 4.8% Sequentially on Weaker Markets

Core Viewpoint - Lazard, Inc. reported a preliminary asset under management (AUM) balance of $235.8 billion for October 2024, marking a 4.8% decrease from $247.7 billion as of September 30, 2024 [1] AUM Breakdown - The decline in AUM was attributed to market depreciation of $4.4 billion, net outflows of $3.3 billion, and foreign exchange depreciation of $4.2 billion [2] - In October, Lazard's equity assets decreased by 4.9% to $182.1 billion, while fixed-income assets fell by 5% to $45.5 billion; other assets saw a slight increase to $8.2 billion [2] Revenue and Cost Management - The company's heavy reliance on financial advisory fees for revenue and ongoing net outflows are expected to impact top-line growth in the near future; however, cost-management efforts are anticipated to support the bottom line [3] Price Performance - Over the past six months, Lazard's shares increased by 42%, outperforming the industry growth of 16.4%; the company currently holds a Zacks Rank 3 (Hold) [5] Performance of Other Asset Managers - Franklin Resources, Inc. reported a preliminary AUM of $1.63 trillion as of October 31, 2024, reflecting a 2.9% decrease from the previous month, driven by negative market conditions and long-term net outflows of $18.5 billion [6] - Cohen & Steers, Inc. reported a preliminary AUM of $89.7 billion as of October 31, 2024, which is a 2.2% decline from the prior month, influenced by market depreciation and distributions, partially offset by net inflows [6][7]