Lazard Funds |
May 1, 2019 |
Before you invest, you may want to review the Portfolios Prospectus, which contains more information about the Portfolio and its risks. The Portfolios Prospectus and Statement of Additional Information (SAI), both dated May 1, 2019 (as revised or supplemented), are incorporated by reference into this Summary Prospectus. You can find the Portfolios Prospectus, SAI and other information about the Portfolio online at https://www.lazardassetmanagement.com/us/en_us/funds/list/mutual-funds/42. You can also get this information at no cost by calling (800) 823-6300 or by sending an e-mail request to Contact.US@Lazard.com.
Lazard Developing Markets Equity Portfolio | Institutional Shares | Open Shares | R6 Shares | ||
LDMIX | LDMOX | RLDMX |
Important Information on Paperless
Delivery
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities
and Exchange Commission, paper copies of the Funds shareholder reports like this one will no longer
be sent by mail, unless you specifically request paper copies of the reports from the Fund or from your
financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available
on a website, and you will be notified by mail each time a report is posted and provided with a website
link to access the report.
If you already elected to receive shareholder reports electronically, you
will not be affected by this change and you need not take any action. Shareholders who hold accounts
directly with the Fund may elect to receive shareholder reports and other communications from the Fund
electronically by signing up for paperless delivery at www.icsdelivery.com/lazardassetmanagement. If
you own these shares through a financial intermediary, you may contact your financial intermediary.
You
may elect to receive all future reports in paper free of charge. You can inform the Fund that you wish
to continue receiving paper copies of your shareholder reports by following the instructions included
with this disclosure and visiting www.fundreports.com. If you own these shares through a financial intermediary,
you may contact your financial intermediary or follow instructions included with this disclosure to elect
to continue to receive paper copies of your shareholder reports. Your election to receive reports in
paper will apply to all funds held with the fund complex or your financial intermediary.
Investment Objective
The Portfolio seeks long-term capital appreciation.
Fees and Expenses
This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio, a series of The Lazard Funds, Inc. (the Fund). Investors transacting in Institutional or R6 shares through a financial intermediary acting as a broker in an agency capacity may be required to pay a commission directly to the broker.
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| Institutional Shares |
| Open Shares |
| R6 Shares |
|
Annual Portfolio Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) |
|
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| ||||
Management Fees |
| 1.00% |
| 1.00% |
| 1.00% |
|
Distribution and Service (12b-1) Fees |
| None |
| .25% |
| None |
|
Other Expenses |
| .14% |
| .26% |
| .14% | * |
Total Annual Portfolio Operating Expenses |
| 1.14% |
| 1.51% |
| 1.14% |
|
* Other Expenses are based on estimated amounts for the current fiscal year, using Other Expenses for Institutional Shares from the last fiscal year.
Example
This Example is intended to help you compare the cost of investing in the Portfolio with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Portfolio for the time periods indicated and then hold or redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Portfolios operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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| 1 year | 3 years | 5 years | 10 years |
Institutional Shares | $ 116 | $ 362 | $ 628 | $ 1,386 | |||
Open Shares | $ 154 | $ 477 | $ 824 | $ 1,802 | |||
R6 Shares | $ 116 | $ 362 | $ 628 | $ 1,386 | |||
Portfolio Turnover
The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Portfolio shares are held in a taxable account. These costs, which are not reflected in annual portfolio operating expenses or in the Example, affect the Portfolios performance. During the most recent fiscal year, the Portfolios portfolio turnover rate was 63% of the average value of its portfolio.
Principal Investment Strategies
The Portfolio invests primarily in equity securities, principally common stocks, of non-US companies whose principal activities are located in emerging market countries (also known as developing markets).
Emerging market countries include all countries represented by the MSCI Emerging Markets Index, which currently includes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.
Lazard Asset Management LLC (the Investment Manager) employs a relative growth investment philosophy that is based on value creation through the process of bottom-up stock selection. The Investment Managers approach consists of an analytical framework, accounting validation, fundamental analysis and portfolio construction parameters. The Investment Managers selection process focuses on growth and considers the sustainability of growth and the trade off between valuation and growth.
Under normal circumstances, the Portfolio invests at least 80% of its assets in equity securities of companies whose principal business activities are located in emerging market countries. In addition to common stocks, such equity securities also may include American Depositary Receipts (ADRs), Global Depositary Receipts and European Depositary Receipts.
Principal Investment Risks
The value of your investment in the Portfolio will fluctuate, which means you could lose money.
Market Risk. Market risks, including political, regulatory, market and economic developments, and developments that impact specific economic sectors, industries or segments of a market, can affect the value of the Portfolios investments. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Portfolio.
Issuer Risk. The value of a security may decline for a number of reasons which directly relate to the issuer, such as management performance, financial leverage and reduced demand for the issuers goods or services, as well as the historical and prospective earnings of the issuer and the value of its assets or factors unrelated to the issuers value, such as investor perception.
Non-US Securities Risk. The Portfolios performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity.
Summary Prospectus
2
Emerging Market Risk. Emerging market countries generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile. These market conditions may continue or worsen. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.
Foreign Currency Risk. Investments denominated in currencies other than US dollars may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. The Portfolios investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. The Investment Manager does not intend to actively hedge the Portfolios foreign currency exposure.
Depositary Receipts Risk. ADRs and similar depositary receipts typically will be subject to certain of the risks associated with direct investments in the securities of non-US companies, because their values depend on the performance of the underlying non-US securities. However, currency fluctuations will impact investments in depositary receipts differently than direct investments in non-US dollar-denominated non-US securities, because a depositary receipt will not appreciate in value solely as a result of appreciation in the currency in which the underlying non-US dollar security is denominated.
Small and Mid Cap Companies Risk. Small and mid cap companies carry additional risks because their earnings tend to be less predictable, their share prices more volatile and their securities less liquid than larger, more established companies. The shares of small and mid cap companies tend to trade less frequently than those of larger companies, which can have an adverse effect on the pricing of these securities and on the ability to sell these securities when the Investment Manager deems it appropriate.
Large Cap Companies Risk. Investments in large cap companies may underperform other segments of the market when such other segments are in favor or because such companies may be less responsive to competitive challenges and opportunities and may be unable to attain high growth rates during periods of economic expansion.
Growth Investing Risk. The Portfolio invests in securities believed by the Investment Manager to have the potential for growth, but that may not realize such perceived potential for extended periods of time or may never realize such perceived growth potential. Such securities may be more volatile than other securities because they can be more sensitive to investor perceptions of the issuing companys growth potential. The securities in which the Portfolio invests may respond differently to market and other developments than other types of securities.
Securities Selection Risk. Securities and other investments selected by the Investment Manager for the Portfolio may not perform to expectations. This could result in the Portfolios underperformance compared to other funds with similar investment objectives or strategies.
Performance Bar Chart and Table
Year-by-Year
Total Returns for Institutional Shares
As
of 12/31
The accompanying bar chart and table provide some indication of the risks of investing in Lazard Developing Markets Equity Portfolio by showing the Portfolios year-by-year performance and its average annual performance compared to that of a broad measure of market performance. The bar chart shows how the performance of the Portfolios Institutional Shares has varied from year to year over the past 10 calendar years. Updated performance information is available at www.lazardassetmanagement.com or by calling (800) 823-6300. The Portfolios past performance (before and after taxes) is not necessarily an indication of how the Portfolio will perform in the future.
Summary Prospectus
3
Best Quarter: | |
Q2 09 | 56.64% |
|
|
Worst Quarter: | |
Q3 11 | -28.53% |
Average Annual Total Returns
(for the periods ended
December 31, 2018)
After-tax returns are shown only for Institutional Shares. After-tax returns of the Portfolios other share classes will vary. After-tax returns are calculated using the historical highest individual marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investors tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts. Returns shown below for the Portfolios R6 Shares (which were not operational as of December 31, 2018) reflect the performance of the Portfolios Institutional Shares. R6 Shares would have had substantially similar returns as Institutional Shares because the share classes are invested in the same portfolio of securities, and the returns would differ only to the extent that the classes do not have the same expenses.
| Inception
| 1 Year | 5 Years | 10 Years | Life of |
Institutional Shares: | 9/30/08 |
|
|
|
|
Returns Before Taxes |
| -20.58% | 0.13% | 8.42% | 3.83% |
Returns After Taxes on Distributions |
| -20.59% | 0.09% | 7.79% | 3.23% |
Returns After Taxes on Distributions and Sale of Portfolio Shares |
| -11.95% | 0.24% | 6.90% | 3.03% |
Open Shares (Returns Before Taxes) | 9/30/08 | -20.83% | -0.23% | 8.07% | 3.49% |
R6 Shares (Returns Before Taxes) |
| -20.58% | 0.13% | 8.42% | 3.83% |
MSCI Emerging Markets Index |
| -14.58% | 1.65% | 8.02% | 4.47% |
(reflects no deduction for fees, expense or taxes) |
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Management
Investment Manager
Lazard Asset Management LLC
Portfolio Managers/Analysts
Kevin OHare, portfolio manager/analyst on the Investment Managers Developing Markets Equity team, has been with the Portfolio since September 2008.
Peter Gillespie, portfolio manager/analyst on the Investment Managers Developing Markets Equity team, has been with the Portfolio since September 2008.
Summary Prospectus
4
James M. Donald, portfolio manager/analyst on the Investment Managers Emerging Markets Equity team and Head of the Emerging Markets Group, has been with the Portfolio since September 2008.
John R. Reinsberg, portfolio manager/analyst on various of the Investment Managers Global Equity and International Equity teams, has been with the Portfolio since September 2008.
Purchase and Sale of Portfolio Shares
The initial investment minimums are:
Institutional Shares* | $ | 10,000** |
Open Shares* | $ | 2,500 |
R6 Shares | $ | 1,000,000 |
* Unless the investor is a client of a securities dealer or other institution which has made an aggregate minimum initial purchase for its clients of at least $10,000 for Institutional Shares ($100,000 until June 1, 2019) or $2,500 for Open Shares.
** $100,000 until June 1, 2019.
There is no minimum investment amount for Board members and other individuals considered to be affiliates of the Fund or the Investment Manager and their family members, discretionary accounts with the Investment Manager, affiliated and non-affiliated registered investment companies and, for R6 Shares only, certain types of employee benefit plans.
The subsequent investment minimum is $50 for Institutional Shares and Open Shares. There is no subsequent investment minimum for R6 Shares.
Open Shares investors investing directly with a Portfolio who meet the Institutional Shares minimum may request that their Open Shares be converted to Institutional Shares. Investors investing through a securities dealer or other institution should consult that firm regarding share class availability and applicable minimums.
Portfolio shares are redeemable through the Funds transfer agent, DST Asset Manager Solutions, Inc., on any business day by telephone, mail or overnight delivery. Clients of financial intermediaries may be subject to the intermediaries procedures.
Tax Information
All dividends and short-term capital gains distributions are generally taxable to you as ordinary income, and long-term capital gains are generally taxable as such, whether you receive the distribution in cash or reinvest it in additional shares.
Financial
Intermediary Compensation (Open and Institutional Shares only)
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of a Portfolio through a broker-dealer or other financial intermediary (such as a bank), the Portfolio and/or the Investment Manager and its affiliates may pay the intermediary for the sale of Portfolio shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Portfolio over another investment. Ask your salesperson or visit your financial intermediarys website for more information.
00073299 | |
Lazard Asset Management LLC 30 Rockefeller Plaza New York, NY 10112 www.lazardassetmanagement.com |