Stars are Aligning for Energy Stocks: How Active Can HelpIt's been a very healthy start to 2026 for energy stocks, and for good reason. A number of factors are coming together to boost their appeal, with data center energy demand and deregulation adding to their case. Of course, while one could simply invest in passive ETFs to get exposure therein, active ETFs may have more to offer.See more: [Active Tech ETF TTEQ Signaling a Buy to End 2025]The active natural resources ETF TURF, for example, offers more th ...

Summary of Lazard Asset Management Conference Call Company Overview - **Company**: Lazard Asset Management - **AUM**: Approximately $265 billion [1] Key Points and Arguments Leadership Transition - **New CEO**: Chris Hogbin appointed as CEO of Lazard Asset Management in December [1] - **Experience**: Chris brings 30 years of global investment leadership, previously serving as global head of investments at AllianceBernstein [1] Strategic Vision - **Lazard 2030**: The vision set by group CEO Peter Orszag is a key attraction for Chris Hogbin [3] - **Strengths**: Lazard has strong investment and distribution capabilities, but there are areas for improvement [3][4] Priorities for Growth 1. **Delivering Investment Performance**: - Two-thirds of AUM is outperforming its stated benchmark, but there is room for improvement [7] - Appointment of a Chief Investment Officer, Eric Van Nostrand, to oversee portfolio managers and enhance performance [8][9] 2. **Growing the Business**: - Transition year with $8.5 billion of net inflows, excluding a significant client termination [11] - January saw nearly $3 billion in net inflows, indicating positive momentum [11] 3. **Capitalizing on Growth**: - Focus on improving margins without adding costs [12] - Need for operating leverage as the business grows [12] Strategic Business Mix - **Protect and Grow**: Focus on systematic equities, global listed infrastructure, and emerging markets [13] - **Invest and Enhance**: Investment in the investment team and new product development, including a move from 0 to $1 billion in active ETFs [14] - **White Space Opportunities**: - Expansion in public markets, private markets, and wealth management [15][16] M&A Considerations - Organic growth is preferred, but selective M&A may be necessary for expansion [17][20] - Focus on partnerships rather than large acquisitions in private markets [20] Institutional Investor Sentiment - Increasing skepticism among asset owners regarding U.S. market valuations, leading to diversification into international markets [25] - Two-thirds of managed assets are non-dollar denominated, indicating strong international exposure [26] Active ETF Business - Growth from 0 to 7 active ETFs with $1 billion AUM, indicating strong demand for successful strategies [35][36] - Future plans include expanding into Europe and innovating new ETFs [37] Margin Improvement - Current margins are below industry average, with no structural limitations to improvement [42][44] - Focus on growing existing products and rationalizing underperforming strategies [45][46] Distribution and Sales Strategy - Impressive distribution team performance with record gross sales of $55 billion [55] - Need for increased front-line personnel to enhance intermediary relationships [55][57] Wealth Management Opportunities - Wealth business in France is profitable and has growth potential; U.S. wealth business offers unique high-net-worth services [71][72] AI Integration - AI will be leveraged in investment processes, client experience, and operational efficiency [75][76] - Aim to automate routine tasks to allow analysts more time for strategic thinking [76] Closing Remarks - Confidence in Lazard's strengths and long-term growth vectors, contributing to the Lazard 2030 ambitions [78]

Lazard (NYSE:LAZ) 2026 Conference February 10, 2026 09:40 AM ET Company ParticipantsPeter R. Orszag - CEOModeratorGet started. Next up, and for the first time, I think, after taking his seat, we have very delighted to sort of welcome Peter Orszag, CEO and Chairman, Lazard. So Peter, first of all, thank you so much for being here.Peter R. OrszagGreat to be with you.ModeratorMaybe just to kick it off, Peter, like I've, I've talked about you as not your typical investment banking CEO. You have an amazing sort ...

The floodgates aren’t closing anytime soon. Active management has become one of the dominant growth engines in the ETF market, and that was highlighted by a record number of fund launches last year. Issuers brought nearly 1,000 active ETFs to market, shattering the prior record of 584 in 2024, according to Morningstar. The surge came with casualties, however: A record 146 active ETFs shut down. Still, despite shorter lifespans than passive funds, asset managers show no signs of pulling back, betting that ...

Financial Data and Key Metrics Changes - Firm-wide revenue for 2025 was $3 billion, an increase of 5% from 2024, with fourth-quarter revenue at $892 million, up 10% year-over-year [11][4] - Financial advisory revenue reached $1.8 billion for the year, with fourth-quarter revenue at $542 million, up 7% from the previous year [11][6] - Asset management revenue was $1.2 billion for 2025, with fourth-quarter revenue at $339 million, up 18% year-over-year [12][8] - Average revenue per Managing Director (MD) increased to $8.9 million, up $2.5 million since 2023 [7][18] - The adjusted effective tax rate for 2025 was 22.7% [15] Business Line Data and Key Metrics Changes - In financial advisory, record revenue was reported in EMEA and the Private Capital Advisory group, with strong performance in restructuring and liability management [6][11] - Asset management AUM (Assets Under Management) was $254 billion as of December 31, 2025, a 12% increase year-over-year [13][8] - Gross inflows in asset management exceeded $50 billion, supported by a focus on sales and distribution [8][9] Market Data and Key Metrics Changes - The current level of won but not yet funded mandates is $13 billion, higher than the previous year, indicating strong client demand [6][9] - The firm anticipates positive net flows in 2026, driven by a diversified investment platform and strong client engagement [9][24] Company Strategy and Development Direction - The company is focused on executing its Lazard 2030 long-term growth strategy, with expectations for substantial growth in both financial advisory and asset management [4][5] - There is a strategic emphasis on enhancing advisory revenue from private capital, aiming to increase its share from approximately 40% to 50% over time [19][30] - The company plans to expand its presence in North America and continue investing in Europe and the Middle East, with new offices opened in Denmark and the UAE [20][24] Management's Comments on Operating Environment and Future Outlook - Management expects M&A activity to accelerate in 2026, despite ongoing geopolitical uncertainties [21][56] - The company sees a significant opportunity for restructuring and liability management due to the widening performance gap among companies [21][92] - The integration of AI into operations is viewed as a key driver for enhancing client outcomes and operational efficiency [24][25] Other Important Information - The company returned $393 million to shareholders in 2025, including dividends and share repurchases [16] - The compensation ratio for 2025 was 65.5%, a slight improvement from 65.9% in the previous year [15] Q&A Session Summary Question: Advisory trends and revenue mix - The revenue mix for the year was approximately 60% M&A and 40% non-M&A, with expectations for the non-M&A component to rise over time [30][31] Question: CFO transition - The transition to the new CFO is viewed as normal and smooth, with the outgoing CFO serving as a senior advisor during the transition [36][37] Question: Private equity activity and M&A outlook - Management anticipates heightened private equity activity in 2026, driven by LPs seeking returns and narrowing bid-ask spreads [45][46] Question: Asset management fee rates and unfunded mandates - The exit rate for the quarter was modestly higher than the average, with a healthy mix of asset classes in the $13 billion of won but not yet funded mandates [48][51] Question: Geopolitical tensions and corporate discussions - There has been no impact on corporate discussions from geopolitical tensions, and the regulatory environment is seen as accommodating for deals [55][56] Question: Incremental comp leverage and operating efficiency - Additional operating leverage is expected in 2026, with a focus on increasing productivity and creating efficiencies across corporate functions [61][62]

LAZARD JANUARY 2026 Investor Presentation Safe Harbor This presentation contains certain statements, estimates and forecasts with respect to future performance and events. These statements, estimates and forecasts are "forward- looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as "may," "might," "will," "should," "could," ...

Core Insights - Small-cap ETFs are experiencing renewed investor interest after a period of outflows, indicating potential investment opportunities ahead [1][2] - The shift in investor sentiment is attributed to favorable monetary and fiscal conditions for smaller companies, with historical data showing small-caps outperform large-caps by 6% in the year following Federal Reserve rate cuts [3] - Valuation metrics indicate that small-caps are trading at a 12% discount to their pre-pandemic five-year average and are 36% below large-caps on a relative basis, suggesting a buying opportunity [4] Investment Themes - Active ETFs have seen significant growth, collecting a record $580 billion in 2025, while active mutual funds faced $640 billion in outflows [5] - Over the past decade, active ETFs have gained $1.2 trillion in assets, contrasting with active mutual funds that lost nearly $4 trillion [5] - In 2025, 47% of active fixed income managers outperformed their benchmarks, compared to only 32% of active equity managers, highlighting the stronger performance of fixed income [6] Diversification Trends - The case for diversification has strengthened, as multiple asset classes delivered positive returns in 2025, marking the first time since 2019 that stocks, bonds, and commodities all outperformed cash [7] - A notable 76% of countries in the MSCI ACWI index outperformed the U.S., the highest percentage since 2009, indicating a shift in global investment dynamics [7] - The SPDR Bridgewater All Weather ETF (ALLW) is highlighted as a diversification option, with significant trading volume exceeding $10 million in 12 of the last 13 days [8]

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q4 2025 was $0.81, unchanged from the prior quarter, while full-year EPS increased to $3.09 from $2.93 in 2024 [4][5] - Revenue for Q4 increased by 2% sequentially to $143.8 million, and full-year revenue rose by 6.9% to $554 million [4][5] - Operating income for Q4 increased by 3% to $52.4 million, with full-year operating income up 6.3% to $195.1 million [6][5] - The effective fee rate for Q4 was stable at 59 basis points, consistent with the prior quarter [5] Business Line Data and Key Metrics Changes - Ending assets under management (AUM) in Q4 was $90.5 billion, slightly down from Q3, but average AUM was higher compared to the prior quarter [6][19] - Net inflows during Q4 were $1.2 billion, primarily from advisory and closed-end funds, offset by market depreciation and distributions [6][19] - The institutional pipeline strengthened, ending the year with $1.72 billion across 20 mandates [22] Market Data and Key Metrics Changes - U.S. REITs returned just 3.2% in 2025, ranking last among the 11 GICS sectors in the S&P 500 [20] - Natural resource equities performed well, with a return of nearly 30%, while global listed infrastructure saw returns ranging from 14% to 22% [21] - Global real estate stocks were flat in Q4, with gains in Asia-Pacific markets countered by weakness elsewhere [11] Company Strategy and Development Direction - The company aims to focus on harvesting returns on investments made in new strategies and vehicles over the past years [25] - There is an expectation for REIT earnings to accelerate above trend to roughly 8% in 2026 and 2027 due to lower supply and increasing demand [16] - The company plans to increase coverage in the RIA channel and expand its institutional presence outside the U.S. [25] Management's Comments on Operating Environment and Future Outlook - Management noted that economic activity and market returns are expected to broaden in 2026, with above-consensus global growth anticipated [14] - The company is optimistic about the return of investor interest in private real estate, driven by improving market conditions [36] - There is a belief that the combination of broadening economic growth and relative valuation attractiveness will benefit the company's asset classes in 2026 [18] Other Important Information - The company reported liquidity of $403 million at year-end, a $39 million increase from the prior quarter [8] - The effective tax rate for the quarter was 25.7%, consistent with the previous year [8] - The company celebrated its 40th anniversary in 2026, highlighting its evolution and commitment to listed markets [31][32] Q&A Session Summary Question: Signs of improving demand for private real estate - Management noted early signs of increasing interest in private real estate, with expectations for it to become a more significant contributor in 2026 [36][38] Question: Progress in the institutional channel - Management indicated a strong pipeline for the institutional channel, with improved conversations and a broader range of mandates [45][46] Question: Dynamics driving the won and unfunded pipeline - Management confirmed that the recent increase in the won and unfunded pipeline reflects broader market dynamics and improved allocator confidence [48][50] Question: Regional demand for advisory and sub-advisory - Management observed expanding demand in non-U.S. markets, with allocators from various countries showing interest [53][54] Question: Areas of demand for active ETFs - Management reported strong interest from RIAs and existing holders of open-end funds converting to active ETFs, indicating a positive trend for future growth [61][62]

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q4 2025 was $0.81, unchanged from the prior quarter, while full-year EPS increased to $3.09 from $2.93 in 2024 [4] - Revenue for Q4 increased by 2% sequentially to $143.8 million, and full-year revenue rose by 6.9% to $554 million [5][6] - Operating income for Q4 increased by 3% to $52.4 million, and for the full year, it rose by 6.3% to $195.1 million [6] - The effective fee rate during Q4 was stable at 59 basis points, consistent with the prior quarter [5] Business Line Data and Key Metrics Changes - Ending assets under management (AUM) in Q4 was $90.5 billion, slightly down from Q3, but average AUM was higher compared to the prior quarter [6][19] - Net inflows during Q4 were $1.2 billion, primarily from advisory and closed-end funds, offset by market depreciation [6] - The institutional pipeline strengthened, ending the year with $1.72 billion across 20 mandates [22] Market Data and Key Metrics Changes - Equities finished 2025 with double-digit gains for the third consecutive year, with diversified real assets rising about 3% in Q4 [11] - Natural resource equities rose more than 6% in Q4, driven by strength in metals and mining stocks [11] - Global real estate stocks were flat overall in Q4, with significant disparities in returns by property type [11] Company Strategy and Development Direction - The company aims to focus on harvesting returns on investments made in recent years and increasing coverage in the RIA channel while maintaining presence in wirehouses [25] - The largest AUM strategy, U.S. REITs, is expected to enter a favorable return cycle, with earnings anticipated to accelerate [25][26] - The company is positioning itself to benefit from a broadening economic growth engine and relative valuation attractiveness in 2026 [18] Management's Comments on Operating Environment and Future Outlook - Management noted that economic activity and market returns are expected to broaden in 2026, with above-consensus global growth anticipated [14] - The company is optimistic about the return of investor interest in private real estate, driven by adjustments in commercial real estate prices and reduced interest rates [36][38] - The institutional channel is showing improved activity, with a strong pipeline and increased interest from allocators [45][46] Other Important Information - The company reported liquidity of $403 million at year-end, a $39 million increase from the prior quarter [8] - The effective tax rate for the quarter was 25.7%, consistent with the previous year [8] - The company launched five active ETFs with total AUM of $378 million, indicating strong market acceptance [29] Q&A Session Summary Question: Signs of improving demand for private real estate - Management noted early signs of increasing interest in private real estate, with expectations for it to become a more significant contributor in 2026 [36][38] Question: Progress in the institutional channel - Management highlighted a strong pipeline for two consecutive quarters, with improved allocator confidence and more liquidity in portfolios [45][46] Question: Dynamics driving the won and unfunded pipeline - Management indicated that the recent increase in the won and unfunded pipeline reflects broader positive dynamics in the market [48][50] Question: Demand for active ETFs - Management observed that active ETFs are gaining traction, particularly among RIAs who exclusively use ETFs, which is driving new capital into these vehicles [62]

Financial Data and Key Metrics Changes - Earnings per share (EPS) for Q4 2025 was $0.81, unchanged from the prior quarter, while full-year EPS increased to $3.09 from $2.93 in 2024 [4] - Revenue for Q4 increased by 2% sequentially to $143.8 million, and full-year revenue rose by 6.9% to $554 million [5] - Operating income for Q4 increased by 3% to $52.4 million, and for the full year, it rose by 6.3% to $195.1 million [5] - The effective tax rate was 25.7% for Q4 and 25.3% for the year, consistent with 2024 [8] Business Line Data and Key Metrics Changes - Ending assets under management (AUM) in Q4 was $90.5 billion, slightly down from Q3, but average AUM was higher compared to the prior quarter [5] - Net inflows during Q4 were $1.2 billion, primarily from advisory and closed-end funds [5] - The compensation ratio decreased to 39% for the quarter, below the guidance of 40.5% [6] Market Data and Key Metrics Changes - Natural resource equities rose more than 6% in Q4, driven by strength in metals and mining stocks [11] - Global real estate stocks were flat in Q4, with significant disparities in returns by property type [11] - Private real estate had a total return of 0.9%, marking the sixth consecutive quarter of increasing total returns [11] Company Strategy and Development Direction - The company aims to focus on harvesting returns on investments made in new strategies and vehicles over the past years [25] - There is an expectation for REIT earnings to accelerate above trend to roughly 8% in 2026 and 2027 due to lower supply and increasing demand [16] - The company plans to increase coverage in the RIA channel and grow its institutional presence outside the U.S. [25] Management's Comments on Operating Environment and Future Outlook - The management anticipates a broadening of economic activity and market returns in 2026, moving away from a historically narrow growth pattern [13] - There is a belief that the economic and market rotation is underway, with real assets expected to outperform equities [13] - The company is optimistic about the potential for natural resource equities and listed infrastructure to play a larger role in portfolios [18] Other Important Information - The company reported liquidity of $403 million at year-end, a $39 million increase from the prior quarter [8] - The company celebrated its 40th anniversary in 2026, highlighting its evolution and the importance of listed markets [31] Q&A Session Summary Question: Signs of improving demand for private real estate - Management noted early signs of increasing interest in private real estate, driven by issues in private credit markets [34] Question: Scaling of active ETFs - Active ETFs are expected to scale quickly due to established strategies and market acceptance [36] Question: Progress in the institutional channel - Conversations have improved, with a strong pipeline and increased interest from allocators [40] Question: Regional demand for advisory and sub-advisory - There is expanding demand from non-U.S. markets, with allocators from various countries showing interest [44] Question: Dynamics that could change global real estate performance - A re-acceleration in demand from global institutions and improved performance of international real estate are expected to be positive factors [46]