Lazard AM unveils first Australian ETF
Lazard Asset Management has launched its first exchange-traded fund (ETF) in Australia, transforming its global listed infrastructure fund into an ETF structure.
The asset manager’s Lazard Global Listed Infrastructure Active ETF is now available on Cboe Global Markets.
It offers investors and financial advisers with access to an actively managed solution of 25 to 50 listed companies from a select subset of the global infrastructure market, providing higher revenue predictability, profitability and lower volatility.
The ETF is a unit class derived from the Lazard Global Listed Infrastructure Fund, which was established in 2005 and has $2 billion in funds under management, as of 31 May 2024.
“We are pleased to now offer this fund in an ETF structure, so Australian investors can enjoy the simplicity of investing through an exchange,” remarked Paul Cuddy, APAC chief executive of Lazard Asset Management.
The new investment vehicle was implemented by the same team that launched Lazard’s global infrastructure fund nearly two decades ago.
The ETF’s investment team includes portfolio managers and analysts Warryn Robertson, John Mulquiney, Bertrand Cliquet and Matthew Landy, alongside research analyst Anthony Rohrlach.
Commenting on the launch, Robertson said: “By investing in the equities of listed infrastructure operators, such as electricity networks, toll roads, and other essential assets and related services, investors can gain exposure to predictable long-term earnings streams.
“In our view, not all infrastructure is created equal. Our unique approach focuses on a ‘preferred’ subset providing an asset class that can deliver clear benefits: diversification, lower volatility and inflation protection.”
Lazard Asset Management’s global products range across asset classes from equity and fixed income to alternative solutions. It manages approximately US$241 billion in client assets, as at 30 April 2024.
Global X was another ETF provider to recently launch a new solution in the infrastructure space.
The firm unveiled its Global X US Infrastructure Development ETF on 5 June 2024, accessible to investors via the ASX.
The ETF provides investors with exposure to firms set to benefit from increased infrastructure activity in the US, including companies involved in the production of raw materials, heavy equipment, engineering, and construction.
“Infrastructure development, which is distinct from investing in infrastructure assets themselves, is critical for the growth and modernisation of any economy,” Evan Metcalf, Global X chief executive, said at the time.
“Within the US, recent legislative acts are directing substantial funding towards infrastructure initiatives, signalling enormous growth potential for companies in this sector.”
AUTHOR
Jasmine Siljic
Recommended for you
Grant Hackett has been promoted from CEO of Generation Life to head up the wider Generation Development Group.
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
