Lazard Emerging Markets Opportunities ETF (EMKT)

Overview

EMKT specializes in investing in equity securities of companies primarily engaged in emerging market economies, which are defined according to the MSCI Emerging Markets universe. The fund predominantly targets common stocks, though it also includes preferred and convertible securities, as well as depositary receipts as part of its investment strategy. EMKT aims to identify companies that seem undervalued based on their earnings, cash flows, or asset values, presenting an attractive investment opportunity.

The fund's investment universe is broad, allowing participation across various market capitalizations. However, depending on prevailing market conditions, there may be a tendency to focus more heavily on larger companies. Additionally, its portfolio may undergo shifts in sectoral or regional concentration, influenced by a bottom-up stock selection approach rather than a predetermined top-down allocation. In normal market conditions, the fund commits at least 80% of its net assets to securities associated with emerging markets. Notably, EMKT has converted from the Lazard Emerging Markets Core Equity portfolio, managing assets totaling $123.8 million.

Products and Services

• Common Stocks - EMKT primarily invests in common stocks of companies located in emerging markets. The focus is on selecting stocks that are considered undervalued in comparison to their earnings potential, which can lead to significant returns for investors.
• Preferred and Convertible Securities - In addition to common stocks, EMKT includes preferred stocks and convertible bonds in its investment strategy. These instruments provide fixed income features while also offering potential equity upside through conversion rights.
• Depositary Receipts - The fund may also invest in depositary receipts that represent shares of foreign companies. This allows investors to gain exposure to international markets while trading on domestic exchanges.
• Sector and Regional Focus - The fund's investments may experience fluctuations in sector and regional exposure based on a thorough bottom-up analysis of potential investments, rather than a fixed top-down allocation, which can enhance growth opportunities in specific areas.
• Emerging Market Focus - Under standard conditions, EMKT commits a minimum of 80% of its net assets to securities that are linked to emerging markets, allowing investors to benefit from the growth potential of these developing economies.