UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06312
The Lazard Funds, Inc.
(Exact name of registrant as specified in charter)
30 Rockefeller Plaza
New York, New York 10112
(Address of principal executive offices) (Zip code)
Mark R. Anderson, Esq.
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 632-6000
Date of fiscal year end: 12/31
Date of reporting period: 12/31/21
ITEM 1. REPORTS TO STOCKHOLDERS.
Lazard Funds
Annual Report
December 31, 2021
Equity Funds
Lazard Developing Markets Equity Portfolio
Lazard Emerging Markets Core Equity Portfolio
Lazard Emerging Markets Equity Advantage
Lazard Emerging Markets Equity Portfolio
Lazard Emerging Markets Strategic Equity
Lazard Equity Franchise Portfolio
Lazard Global Equity Select Portfolio
Lazard Global Listed Infrastructure Portfolio
Lazard Global Strategic Equity Portfolio
Lazard International Equity Advantage Portfolio
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Lazard International Equity Portfolio
Lazard International Equity Select Portfolio
Lazard International Equity Value Portfolio
Lazard International Quality Growth Portfolio
Lazard International Small Cap Equity Portfolio
Lazard International Strategic Equity Portfolio
Lazard Managed Equity Volatility Portfolio
Lazard US Equity Concentrated Portfolio
Lazard US Equity Focus Portfolio
Lazard US Small-Mid Cap Equity Portfolio
Lazard US Sustainable Equity Portfolio
Lazard US Systematic Small Cap Equity Portfolio |
The Lazard Funds, Inc. Table of Contents
Please consider a Portfolio’s investment objective, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. (the “Fund”), you may obtain a prospectus or a Portfolio’s summary prospectus by calling 800-823-6300, or online, at www.lazardassetmanagement.com. Read the prospectus or the Portfolio’s summary prospectus carefully before you invest. The prospectus and a Portfolio’s summary prospectus contain the investment objective, risks, charges, expenses and other information about the Portfolio, which are not detailed in this report.
Distributed by Lazard Asset Management Securities LLC.
Annual Report 1
The Lazard Funds, Inc. A Message from Lazard (unaudited)
Dear Shareholder:
The year 2021 proved to be an especially challenging one for global financial markets, as the pandemic entered its second year and new risk factors emerged.
Despite the emergence of several highly effective vaccines in late 2020, anxiety about COVID-19 continued to hang over global financial markets for much of 2021. The uneven nature of the worldwide vaccine rollout, shortages of a wide variety of items, and the emergence of more infectious strains were stark reminders that the virus remained a serious, persistent threat to global public health and the world economy.
Yet, it was the specter of surging global inflation that was also front and center in the minds of investors throughout the year. Traders were concerned that the sharp rise in consumer prices would force monetary policymakers, especially those at the US Federal Reserve (the “Fed”), the world’s most influential central bank, to raise interest rates to contain inflation, potentially hindering a fragile global economic recovery and undercutting a major source of support for riskier assets. Against a backdrop of persistently high inflation and a wave of new COVID-19 cases sweeping across parts of the world, the Fed announced in the closing weeks of December that it would pull back on its massive stimulus program. The news forced markets to prepare to enter 2022 with less Fed support than they have had since the start of the pandemic.
Despite all the challenges and uncertainty, global equity markets generally advanced in 2021, in large part due to solid corporate earnings, especially in the United States and Europe, with data indicating that earnings recoveries were underway for companies in both regions. Global bond markets, including those for sovereign debt and local currency emerging markets, faced headwinds amid the backdrop of rising interest rates and US dollar strength. Among the bright spots were inflation-linked bonds, which were supported by higher inflation expectations,
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and high yield bonds, which benefited from coupon income and stable or tighter credit spreads.
The year 2021 continued a trend of extraordinary shifts in market conditions. However, whatever the investment landscape, we remain confident that fundamental analyses will be crucial drivers of performance going forward. We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities.
Sincerely,
Lazard Asset Management
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The Lazard Funds, Inc. Investment Overviews (unaudited)
Market Overviews
Global Markets
For the year ended December 31, global equity markets rose sharply, as measured by the MSCI All Country World Index (“MSCI ACWI”), as risk appetites proved resilient enough to fuel a rally that was able to overcome heightened uncertainty.
Despite the discovery of a vaccine last November, coronavirus disease 2019 (“COVID-19”) risk lingered and remained a persistent source of anxiety for investors. The emergence of the rapidly spreading, highly infectious Delta and Omicron variants of COVID-19 in the second half of the year sparked waves of infections around the world and rattled markets, with traders fearing the imposition of economically punishing lockdowns in order to contain the outbreaks. However, in the case of the Omicron variant, which emerged in late November, these fears eased considerably, as scientific data suggested that this variant may cause less severe illness than the Delta and earlier variants.
The specter of surging global inflation was top of mind for investors for much of 2021 amid supply-chain bottlenecks, labor shortages, and sharp increases in shipping costs and oil prices. With consumer prices remaining stubbornly high, all eyes were on the stimulus policy path of the US Federal Reserve (the “Fed”). The announcement by the world’s most influential central bank in the final weeks of the year that it would accelerate the tapering of its bond purchases and likely raise interest rates three times in 2022 received a mixed reaction from financial markets. While traders were heartened by signs that the Fed took the threat of inflation seriously, they also worried that a rapid increase in interest rates could slow global economic growth and undercut the appeal of stocks, which have benefited greatly from the massive stimulus programs. Two other key central banks, the Bank of England and the European Central Bank, announced that they, too, were taking a more hawkish turn in order to contain higher prices.
Negative developments in China during the year compounded market anxiety. China’s economic slowdown and increased
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regulatory scrutiny of domestic companies, coupled with the financial woes of the country’s debt-laden real estate sector, weighed heavily on the world’s second largest economy.
Despite mounting uncertainty, consistently strong profits, especially for US and European companies, provided momentum for a stock market rally. In all four quarterly corporate earnings seasons in 2021, the percentage of companies in both the S&P 500 Index, which is widely used to represent the performance of large capitalization US companies, and the STOXX Europe 600 Index, generally considered representative of European stock market performance, exceeded expectations, beating their long-term historical averages. Encouragingly, data indicated that an earnings recovery was underway for companies on both sides of the Atlantic. Japanese companies also reported upbeat corporate earnings throughout the year. Against this backdrop, the MSCI ACWI, which covers both developed and developing markets, climbed 18.5% in 2021 (in US dollar terms).
Stock markets in the developed world advanced in 2021, while those in the developing world retreated. In the US, the S&P 500 Index outperformed the MSCI ACWI by a wide margin, as bullish sentiment about corporate earnings and the country’s improving economic outlook drove the US stock market higher. For the year, the S&P 500 Index posted seventy all-time highs for 2021, the most in the post-World War II era since 1954. In Europe, the STOXX Europe 600 Index gained, but underperformed the MSCI ACWI, as solid corporate earnings were overshadowed by anxiety about another wave of COVID-19 infections that swept across the continent. In Japan, the MSCI Japan Index climbed but trailed the MSCI ACWI, as the country’s COVID-19 outbreaks and sluggish personal consumption proved to be obstacles. Despite these headwinds, strong corporate earnings, especially from manufacturers, made significant positive contributions to performance. Meanwhile, in the developing world, China’s stock market, as measured by the MSCI China Index, fell due to concerns about the country’s dimming economic outlook. The country’s increased regulatory scrutiny wiped out $1 trillion in stock market value of China-based companies.
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Emerging Markets Equities
Latin America was the worst performing emerging markets region in 2021, with Brazil’s stock market falling sharply on concerns about the country’s economic outlook and political risk stemming from upcoming elections. Emerging Asia also underperformed the MSCI Emerging Markets Index (the “MSCI EM Index”), a broad measure of emerging markets stock performance, as a result of the concerns in China. Chinese stocks account for over one-third of the MSCI EM Index, so the decline in Chinese stock market had an outsize impact on the broader market index. The region encompassing emerging Europe, the Middle East, and Africa (EMEA) outperformed the broader market index, with Russia’s stock market jumping, thanks to a strong rebound in the price of oil, the country’s chief export. Russia’s stock market faltered late in the year on sanctions risk stemming from the country’s potential military conflict with Ukraine.
Energy was the best performing emerging markets sector in the MSCI EM Index, as a recovery in the price of oil lifted shares of oil producers. Consumer discretionary was the worst performing sector in the MSCI EM Index, as Chinese private education companies fell sharply after the government banned for-private tutoring.
International Equities
International stocks, as measured by the MSCI EAFE Index, once again underperformed the US market, despite beginning 2021 with much cheaper valuations and experiencing faster earnings growth throughout the year, especially in Europe.This was due, in significant part, to the overwhelming outperformance of the expensive growth stocks that dominated the very concentrated S&P 500 benchmark. Energy was the best performing international sector in 2021. Oil producers saw their stock price climb in sympathy with the rebound in oil prices. Communication services was the worst performing sector, due in part to several gaming companies experiencing sharp losses in the second half of the year.
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US Equities
Energy was the best performing sector in the S&P 500 in 2021. Oil producers saw their stock price climb in sympathy with the rebound in oil prices, as investors bet that the re-opening of economies will increase demand. Utilities was the worst performing sector, as heightened risk appetites led investors to rotate out of defensive stocks and into economically sensitive ones.
Within the small-mid cap universe, the Russell 2500 Index returned 18.19% in 2021 with value stocks outperforming growth stocks by the widest margin since 2000. Small-mid cap stocks outpaced the market at the beginning of the year as the economy benefitted from reopening, but have since lagged versus larger cap stocks. Within the Russell 2500, financials were a large driver of performance, up over 30% for the year amid hopes for higher interest rates; with inflation remaining stubbornly high, the Fed announced that it would accelerate the pull back of its bond purchases and likely raise interest rates in 2022, satisfying investors who believed the central bank could move towards tighter monetary policy without derailing economic growth. Energy was also a notable gainer, up 82% this year, as oil and gas prices were driven higher by stronger demand and weak supply.
Global Infrastructure
Listed infrastructure indices, as measured by the MSCI World Core Infrastructure® (USD Hedged) Index, moved sharply higher over the year, particularly in the final month of the year. The strongest performing areas of infrastructure in 2021 were regulated water utilities and North American freight railroads. The poorest performing areas were Japanese passenger railways and satellites. In an inflationary environment, infrastructure does play a key role in our clients’ portfolios but understanding the nuance of infrastructure assets is crucially important. The majority of infrastructure assets listed on public markets do not have either monopoly-like positions or guaranteed inflation protection in regulatory arrangements.
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Portfolio Performance
Lazard Developing Markets Equity Portfolio
For the year ended December 31, 2021, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of -10.14%, while Open Shares posted a total return of -10.37%, as compared with the -2.54% return for the MSCI Emerging Markets Index.
Silicon Motion, a Taiwanese fabless semiconductor and memory controller company, outperformed because of strong demand for controllers in a tight market. ICICI Bank, an Indian banking group, outperformed as a result of strong growth in its retail segment and further improvements in its asset quality. Mphasis, an Indian information technology services provider, did well as demand for digital services accelerated during the pandemic as clients moved to meet customer needs in new channels.
In contrast, Tencent Music, a Chinese music streaming platform, fell on concerns that monetization would be delayed as a result of increasing regulation and competition. Tencent Holdings, a Chinese gaming, and social media company, underperformed on concerns that increasing regulations in the gaming space would reduce growth and profitability.
Lazard Emerging Markets Core Equity Portfolio
For the year ended December 31, 2021, the Lazard Emerging Markets Core Equity Portfolio’s Institutional Shares posted a total return of -11.21%, while Open Shares posted a total return of -11.53% and R6 Shares posted a total return of -11.19%, as compared with the -2.54% return for the MSCI Emerging Markets Index.
Shares in several technology, property, gaming, and private education companies fell as various international authorities introduced new regulations throughout the year. New Oriental Education, a Chinese provider of private educational services, declined sharply during the period after regulators in China took aim at the education industry, mandating that online education
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systems serving high school students and below furnish their services at cost, and forced the company to convert to a non-profit enterprise. Chinese data center service company VNET Group underperformed because of investor concerns about its outlook due to internet regulations in China. The company’s American Depositary Receipt (ADR) shares also weakened after US regulators suggested the possible delisting of Chinese ADR stocks from US equity markets. Korean gaming company NCSoft moved lower after increased regulatory scrutiny and the underperformance of the launch of its anticipated game Blade & Soul II. Stock selection in the financials and healthcare sectors and in China and Taiwan detracted from performance.
Hindalco Industries, an Indian producer and marketer of aluminum and copper, outperformed on news that its US-based subsidiary Novelis, reported better-than-expected quarterly earnings and announced plans to raise millions in capital to refinance higher-cost bonds. Russia-based energy company Lukoil benefited from a spike in both oil and gas prices. The Portfolio’s less-than-benchmark exposure to Chinese e-commerce company Pinduoduo boosted relative performance, as the company’s shares fell more than 65% in 2021. Stock selection in the materials and energy sectors and in Indonesia contributed to relative performance.
Lazard Emerging Markets Equity Advantage Portfolio
For the year ended December 31, 2021, the Lazard Emerging Markets Equity Advantage Portfolio’s Institutional Shares posted a total return of 0.96%, while Open Shares posted a total return of 0.63%, as compared with the -2.54% return for the MSCI Emerging Markets Index.
The Portfolio enjoyed a particularly strong year in terms of relative performance. Wan Hai Lines, a Taiwan shipping concern, outperformed, thanks to the ongoing dislocation in the global supply chain, which increased shipping rates in 2021. Growing global demand for outsourced information technology (IT) support boosted the stock prices of India-based service providers Wipro and Infosys.
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In contrast, New Oriental Education, a Chinese provider of private educational services, fell sharply after the Chinese government mandated that online education systems serving high school students and below furnish their services at cost, effectively eliminating the company’s viability as an ongoing for-profit commercial enterprise. China-based e-commerce retailer Vipshop faltered after a large hedge fund, which held a significant position in the company, was forced into liquidation. Shares came under additional pressure after China’s Ministry of Industry and Information Technology cited the company in August and again in October for illegally acquiring users’ address books and locations and for displaying pop-up windows. The Portfolio closed its position in this security in October.
Lazard Emerging Markets Equity Portfolio
For the year ended December 31, 2021, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of 5.38%, while Open Shares posted a total return of 5.13% and R6 Shares posted a total return of 5.44%, as compared with the -2.54% return for the MSCI Emerging Markets Index.
Stock selection in the consumer discretionary, communication services, energy, and materials sectors boosted relative performance, as did stock selection in China and Korea. Lower-than-benchmark exposure to the consumer discretionary sector and to China contributed positively, as did higher-than-benchmark exposure to the energy and financials sectors and to Russia and Mexico. Shares of Taiwanese integrated circuits maker Novatek Microelectronics rebounded on bullish sentiment about the company’s outlook for 2022. Shares of Russian energy company Lukoil gained because of a spike in both oil and gas prices. Shares of America Movil rose based on news that the Mexican telecom services company successfully executed its divestment of non-core assets and improved shareholder returns.
Security selection in the financials and real estate sectors hurt relative performance, as did a lower-than-benchmark exposure to Taiwan and Saudi Arabia. Shares of Chinese property management company A-Living fell because of an ongoing share-price overhang
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as a result of cash flow issues for its parent company, Agile Group. Shares of Ping An Insurance declined after the China-based insurer disclosed an ongoing regulatory probe into its past real estate transactions. The stock price of Brazil-based lender Banco do Brasil fell as a result of worries about both the country’s upcoming elections and the lowering of GDP growth forecasts.
Lazard Emerging Markets Strategic Equity Portfolio
For the year ended December 31, 2021, the Lazard Emerging Markets Strategic Equity Portfolio’s Institutional Shares posted a total return of -5.54%, while Open Shares posted a total return of -5.75%, as compared with the -2.54% return for the MSCI Emerging Markets Index.
China-based online auto retailer Autohome declined due to increasing regulatory risk from Chinese government regulators. Sands China, a China-based company that engages in the development and operation of gaming resorts in Macao, weakened amid concerns around the pandemic and increased government regulation. China-based air conditioner manufacturer Gree Electric Appliances fell on lower-than-expected sales figures. Stock selection in the financials, communication services, and consumer staples sector undercut relative performance as did stock selection in India and Brazil.
Shares of South Africa-based miner Anglo American traded higher, thanks to rising metal prices. Russian oil and gas company Lukoil outperformed partially due to rising oil prices. India-based IT solutions provider Tata Consultancy Service gained on strong demand and acceleration in cloud adoption. Stock selection in the information technology, materials, and consumer discretionary sectors lifted relative performance, as did stock selection in China and Korea.
Lazard Equity Franchise Portfolio
For the year ended December 31, 2021, the Lazard Equity Franchise Portfolio’s Institutional Shares posted a total return of 22.76%, while Open Shares posted a total return of 22.36%, as compared with the 21.82% return for the MSCI World® Index.
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US-based tax preparer H&R Block was the top contributor for the year, with strong first quarter results driving momentum across the business throughout the year. US-based pharmacy and health insurance giant CVS Health traded higher, as a result of guidance that a 10% dividend increase and a $10 million buyback would occur in 2022, both of which highlighted the company’s expectation for strong continued cash generation. UK-based International Gaming Technology (IGT) rose after paying down debt and reducing leverage.
In contrast, Germany-based dialysis provider Fresenius fell because of issues relating to higher patient mortality due to COVID-19, and concerns about margin pressure stemming from higher staffing costs. Luxembourg-based satellite infrastructure company SES also detracted from relative performance, despite no changes to near term forecasts and strong projections for recurring free cash flow generation.
Lazard Global Equity Select Portfolio
For the year ended December 31, 2021, the Lazard Global Equity Select Portfolio’s Institutional Shares posted a total return of 19.75%, while Open Shares posted a total return of 19.37%, as compared with the 18.54% return for the MSCI ACWI.
Stock selection in the health care sector contributed to performance. Shares of IQVIA rose after the US-based health information technology and clinical research company reported strong quarterly earnings and raised its guidance throughout the year. Investors also reacted positively when IQVIA announced the purchase of the remaining stake in its clinical laboratory joint venture with Quest Diagnostics in the second quarter. Stock selection in the industrials sector also contributed to performance. Shares of Japanese consulting company BayCurrent rose, as the consulting company delivered strong organic growth as corporations continue to digitalize their businesses. The company has seen strong growth in consultant hiring and pricing driven by historical under-investment in information technology in Japan, demographic trends, work from home and government policy.
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In contrast, stock selection in the utilities sector detracted from performance. Shares of China Gas, which reported much lower-than-expected profit and guidance, driven by fewer residential connections due to tighter local government budgets for connection subsidies in the second half of the year, detracted from performance. The Portfolio initially purchased the company in early 2020 based on the prospect that it would benefit from China’s move towards a greater penetration of gas in the country’s energy mix while it shifted away from coal to reduce pollution. The Portfolio closed its position in December 2021, as the likelihood of this prospect diminished. Less-than-benchmark exposure to the energy sector also detracted from performance, as energy was the top performing sector in the benchmark.
Lazard Global Listed Infrastructure Portfolio
For the year ended December 31, 2021, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of 19.87%, while Open Shares posted a total return of 19.56%, as compared with the 19.70% return for the MSCI World Core Infrastructure® (USD Hedged) Index and 21.82% return for the MSCI World Index.
UK-based utility provider National Grid delivered consecutive months of strong performance after the release of robust results for the first half of 2021. Spain-based infrastructure giant Ferrovial rose sharply in December 2021 after traffic volume recovered at its key asset, the 407-ETR toll road in Ontario, Canada, which enabled resumption of dividends in the fourth quarter of 2021. Italian gas infrastructure company Snam saw its stock price climb, thanks to strong financial results, particularly for the second quarter of 2021.
In contrast, US-based electric utility Pinnacle West detracted after some harsher-than-expected regulatory decisions towards the end of its general rate case (a state-mandated process that investor-owned electric and gas companies go through to request funding for distribution and generation costs) reduced its authorized return on equity to 8.7%, which was lower than expected by the market. Luxembourg-based satellite operator SES detracted after it fell in the final quarter of 2021, despite no changes to near term
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forecasts and strong projections for recurring free cash flow generation.
Lazard Global Strategic Equity Portfolio
For the year ended December 31, 2021, the Lazard Global Strategic Equity Portfolio’s Institutional Shares posted a total return of 16.13%, while Open Shares posted a total return of 15.90%, as compared with the 18.54% return for the MSCI ACWI.
Shares of BayCurrent Consulting traded higher after the Japanese IT consulting company delivered strong organic growth as corporations continue to digitalize their businesses. Shares of US contract health care research company IQVIA rose after the company reported strong quarterly earnings and raised its guidance throughout the year. US-based chipmaker Applied Materials climbed on increased demand for chips.
In contrast, shares of Siemens Gamesa Renewable Energy fell on news of operational issues in its onshore wind turbine business. Chinese e-commerce giant Alibaba fell on concerns about a slowing Chinese economy and increased Chinese government regulation.
Lazard International Equity Advantage Portfolio
For the year ended December 31, 2021, the Lazard International Equity Advantage Portfolio’s Institutional Shares posted a total return of 13.94%, while Open Shares posted a total return of 13.75%, as compared with the 11.26% return for the MSCI EAFE Index.
Denmark-based Novo Nordisk, the world’s leading drug maker for diabetes and obesity treatment with over a 30% market share, gained on bullish sentiment about the company’s outlook, as it continued to build out its drug pipeline moving beyond various forms of insulin into heart treatment. France-based building materials supplier Saint-Gobain climbed due to the surge in home improvement projects, notably in Europe, coming out of the pandemic. Japanese chip-making equipment maker Tokyo Electron advanced, thanks to a growing demand stemming from greater semiconductor use in everything from smartphones to automobiles.
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In contrast, Nintendo traded lower as investors were disappointed that the Japanese gaming company did not release any new titles in the first half of 2021 against a backdrop of reasonably strong performance across the rest of the gaming industry. Australian iron ore producer Fortescue Metals, a major supplier to the China construction industry, receded on the Chinese government curtailing real estate speculation and news of financial difficulties with debt-laden Evergrande, the largest real estate developer in China.
Lazard International Equity Portfolio
For the year ended December 31, 2021, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of 6.00%, while Open Shares posted a total return of 5.76%, and R6 Shares posted a total return of 6.03%, as compared with the 11.26% return for the MSCI EAFE Index.
A key drag on performance was the Portfolio’s holdings of companies its management team views as having attractive long-term prospects, but which remain vulnerable to uncertainties around economic re-openings. Performance also suffered from the Portfolio’s exposure to Chinese companies particularly vulnerable to the changes in the regulatory and economic environment. Lastly, the Portfolio suffered from not owning some high-quality companies which could not be justified on valuation grounds.
Although the MSCI EAFE Index does not include exposure to Chinese companies, the Portfolio held Autohome during the year, a Chinese security. Autohome, an online auto retailer, suffered significantly during the year, as a result of uncertainty regarding new car sales in China due to ongoing semiconductor shortages and pressure on the original equipment manufacturer from raw material inflation. The stock was also hurt by the continued increased regulatory oversight of the Chinese government on various industries. Also during the year, shares of Vestas, a Danish wind power company, fell significantly as higher costs for logistics-related functions, warranties, and raw materials affected earnings.
In contrast, the stock of Bank Leumi, an Israeli bank, was a positive contributor to relative performance during the year because of
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strong credit results and loan growth momentum driven by demand in the Israeli construction and real estate markets. Hitachi, a Japanese conglomerate that contributed positively to relative returns, benefitted from management initiatives and reported higher-than-expected earnings. RELX, a UK-based professional publisher that also has businesses in risk assessment and mitigation, a legal platform, and an events business, also contributed positively to relative performance for the year.
Lazard International Equity Select Portfolio
For the year ended December 31, 2021, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of 3.24%, while Open Shares posted a total return of 3.03%, as compared with the 7.82% return for the MSCI ACWI ex-US.
The Portfolio management team continues to view certain holdings as having attractive long-term prospects, despite recent underperformance and vulnerabilities due to uncertainties around slow economic re-openings. Examples include medical device maker Medtronic, food services company Compass Group, and low-cost airline Ryanair.
Performance also suffered from the Portfolio’s exposure to Chinese companies hurt by the Chinese government’s increased regulatory oversight of various industries. For example, Autohome, an online auto retailer, suffered significantly during the year, as a result of uncertainty regarding new car sales in China due to ongoing semiconductor shortages and pressure on the original equipment manufacturer from raw material inflation. Shares on China-based insurer Ping An Insurance were hurt by a slowing Chinese economy and the China’s “zero Covid” policy, which have hindered sales agents’ ability to hold face-to-face meetings with clients to sell life insurance policies. Additionally, the China-based insurer suffered loses when it disclosed an ongoing regulatory probe into its past real estate transactions. Lastly, the Portfolio also suffered on a relative basis from not owning some high-quality companies which could not be justified on valuation grounds.
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In contrast, Ireland-domiciled professional services company Accenture experienced significant gains after reporting impressive fourth quarter performance. Additionally, Aon experienced gains as it abandoned proposed plans to acquire its competitor Willis Towers Watson because this proposed acquisition was plagued by litigation from the US Department of Justice. RELX, a UK-based professional publisher that also has businesses in risk assessment and mitigation, a legal platform, and an events business, also contributed positively to relative performance for the year.
Lazard International Equity Value Portfolio
For the year ended December 31, 2021, the Lazard International Equity Value Portfolio’s Institutional Shares posted a total return of 7.57%, while Open Shares posted a total return of 7.42%, as compared with the 11.26% return for the MSCI EAFE Index.
Stock selection in the consumer staples sector contributed positively to performance in the period. Arca Continental, a Mexico-listed Coca-Cola bottler, performed well as a result of solid performance results and continued strong growth during the year. Stock selection in the industrials sector also contributed positively to relative performance in the period. Hitachi, a Japanese conglomerate that contributed positively to relative returns, benefitted from management initiatives and reported higher-than-expected earnings. Stock selection in Japan also contributed positively to relative performance in the period. Sony, the Japan-listed electronics giant, experienced gains because of both strong performance results and announcements that it would acquire several game developers.
Stock selection in the consumer discretionary sector detracted from performance during the period. Vipshop faltered after a large hedge fund, which held a significant position in the company, was forced into liquidation. Shares came under additional pressure after China’s Ministry of Industry and Information Technology cited the company in August and again in October for illegally acquiring users’ address books and locations and for displaying pop-up windows. Negative stock selection impact in Asia ex-Japan detracted from relative performance during the period. SJM
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Holdings Limited, a Macao-based casino and resorts operator, underperformed as a result of continued COVID-19 related mobility and congregation restrictions and because of uncertainty surrounding Macao’s gaming license renewal process.
Lazard International Quality Growth Portfolio
For the year ended December 31, 2021, the Lazard International Quality Growth Portfolio’s Institutional Shares posted a total return of 9.99%, while Open Shares posted a total return of 9.69%, as compared with the 7.82% return for the MSCI ACW ex-US Index.
Japanese animation company Toei traded higher after raising its full-year guidance for operating profit by 31% and net income by 34% despite having to postpone some film releases into next year. Netherlands-based semiconductor equipment maker ASML saw its stock price rise due to strong quarterly results and better-than-expected orders, driven by solid demand for the company’s extreme ultraviolet lithography systems. Shares of Switzerland-based investment manager Partners Group advanced after reporting a strong investment pipeline on both the buy side (investing in new companies) and sell side (raising funds for investment), and its shares also benefited from improved market conditions.
In contrast, Chinese e-commerce giant Alibaba fell as investors were still grappling with the Chinese government’s heightened intervention in internet platforms, education, and fintech companies and the accompanying heightened regulatory risk. Shares of LG Household and Health Care retreated after the South Korea-based cosmetics company reported results that were moderately below expectations, mostly due to higher marketing costs and a fall in offline cosmetics revenue in China, a key market. Shares of the London Stock Exchange receded after the UK-based exchange operator announced higher spending as the result of its recent acquisition of Refinitiv.
Lazard International Small Cap Equity Portfolio
For the year ended December 31, 2021, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of 11.83%, while Open Shares posted a total return of
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11.61%, as compared with the 10.10% return for the MSCI EAFE Small Cap® Index.
Stock selection in the financials sector contributed to performance. Positive performance from several Canadian stocks and strong performance from Dutch semiconductor equipment maker ASML also contributed positively to Portfolio performance, along with the Portfolio’s holding of Swiss banking group Swissquote and professional services company JTC.
Stock selection in the communication services sector detracted. Weak performance from the Portfolio holding of German software developer TeamViewer, information and advisory services provider Karnov, and Sweden-based independent creator, publisher and distributor of digital games Stillfront also detracted from Portfolio performance.
Lazard International Strategic Equity Portfolio
For the year ended December 31, 2021, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of 5.99%, while Open Shares posted a total return of 5.67%, and R6 Shares posted a total return of 5.93%, as compared with the 11.26% return for the MSCI EAFE Index.
The largest detractors were the stocks of Chinese companies particularly vulnerable to China’s intensifying regulatory oversight, including Macao-based casino operator Sands China, video game company Nexon, e-commerce giant Alibaba, and online auto retailer Autohome. Significant detractors also included companies in which the ongoing coronavirus pandemic restricted consumer demand and behavior, including Canadian flight training provider CAE, French jet maker Safran, Irish air carrier Ryanair, UK-based events organizer Informa, US-based medical devices maker Medtronic, and Brazilian apparel retailer Lojas Renner.
Among the top contributors, National Bank, based in Montreal, performed very strongly. In the energy sector, shares of Suncor rose sharply after the Canadian oil sands producer reported very strong results and cash flows. Shares of French alcoholic beverage
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company Pernod Ricard and UK-based Coca-Cola bottler Coca-Cola Europacific Partners benefited from domestic re-openings. Shares of UK-based insurance broker Aon and UK-based information services company RELX climbed as a result of strong performance and attractive valuations. Shares of Japanese consulting company BayCurrent and Ireland-domiciled professional services company Accenture advanced, due to a strong trend toward digitalization of tasks that had been traditionally performed in an office.
Lazard Managed Equity Volatility Portfolio
For the year ended December 31, 2021, the Lazard Managed Equity Volatility Portfolio’s Institutional Shares posted a total return of 19.00%, while Open Shares posted a total return of 18.62%, as compared with the 21.82% return for the MSCI World Index.
Stock selection in communication services and financials detracted from performance, as did underweight exposure to the consumer staples and utilities sectors. Overweight exposure to the real estate sector and underweight exposure to consumer discretionary sector contributed positively to performance. Regionally, stock selection was strongest in Continental Europe and Japan, and weakest in the UK and the US.
US-based consumer products company Clorox retreated after second quarter sales dropped by 9%, as consumer demand for cleaning supplies declined. The company projected more declines in the 2022 fiscal year and outlined guidance for earnings below analysts’ expectations. The Portfolio closed its position in August. UK-based miner Rio Tinto retreated along with the decline in commodity prices halfway through the year, notably iron ore. In addition, Rio Tinto’s $2.4 billion lithium project in Serbia encountered heavy resistance and has been paused. Japanese home improvement retailer DCM fell following the COVID-19 surge in Japan in early 2021. For the first quarter, the company reported an 8% decline in home improvement sales and 20% quarterly decline in housekeeping sales, disappointing investors.
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In contrast, Denmark-based drugmaker Novo Nordisk, the world’s leading drugmaker for diabetes and obesity treatment, rose on strong financial results throughout 2021 and the initial substantial US demand for its obesity drug, Wegovy, which enabled the company to raise its outlook for the full year. Shares received another boost when the company announced a share buyback program. Shares of Public Storage climbed after the US-based self-storage company reported strong quarterly earnings, as move-in rates moved higher, renewal rates remained robust, and marketing costs decreased helping to reduce expenses and increase margins and profits. Shares received another boost on positive sentiment about the company’s acquisition of ezStorage, one of the highest quality self-storage companies in the US, for $1.8 billion. Shares of Zoetis traded higher after the US-based animal-health company upgraded its 2021 revenue forecast after a stellar first quarter, and for the third quarter its profit and revenue rose even further, driven by its pet care, parasiticides and dermatology products.
Lazard US Equity Concentrated Portfolio
For the year ended December 31, 2021, the Lazard US Equity Concentrated Portfolio’s Institutional Shares posted a total return of 26.02%, while Open Shares posted a total return of 25.72% and R6 Shares posted a total return of 26.06%, as compared with the 28.71% return for the S&P 500 Index.
A position in fintech and payments company Fiserv fell due to increased competitive pressures as well as mixed quarterly earnings. Shares also lagged due to pandemic-driven uncertainties, as the anticipated increase in consumer spending was hampered by concerns of pandemic-induced slowdowns. Medical device maker Medtronic saw its stock price fall following the announcement of several pipeline setbacks in the latter part of the year, and as some investors were concerned that the new coronavirus variants may threaten elective surgery activity. Shares of hospital supply company Baxter fell due to pandemic-related headwinds, including higher inflation and new product pipeline delays. The Portfolio closed its position in December, as we saw opportunities with better risk-reward profiles elsewhere.
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Alphabet, the parent company of internet search giant Google, saw its stock price climb after reporting strong quarterly results throughout the year. Revenues generally beat investor expectations, driven by Google Search and YouTube, reflecting growth that is well above historical levels, as online-enabled commerce activity increased across various industries. The cloud business also reported accelerated revenue growth and improved margins. Shares of Public Storage climbed after the self-storage provider reported strong results, driven by strong performance across various metrics and improved pricing power. Shares received another boost on positive sentiment about the company’s acquisition of ezStorage, one of the highest quality self-storage portfolios in the US, for $1.8 billion. Shares of Lowe’s advanced after the home improvement retailer reported quarterly earnings above expectations, driven by strong gross margins and expense management.
Lazard US Equity Focus Portfolio
For the year ended December 31, 2021, the Lazard US Equity Focus Portfolio’s Institutional Shares posted a total return of 27.36%, while Open Shares posted a total return of 26.96% and R6 Shares posted a total return of 27.34%, as compared with the 28.71% return for the S&P 500 Index.
Stock selection in the health care sector detracted from performance. Shares of medical device maker Medtronic fell following the announcement of several pipeline setbacks, and as some investors were concerned that the new coronavirus variants may threaten elective surgery activity. Stock selection in the information technology sector also hurt returns. Shares of payment company Visa lagged along with those of peers as a result of increased competitive pressure from fintech companies.
Stock selection in the communication services sector contributed to performance. Shares of Google parent Alphabet rose after the company reported strong quarterly results throughout the year. Revenues generally beat investor expectations, driven by Google Search and YouTube, reflecting growth that is well above historical levels, as online-enabled commerce activity is elevated across
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various industries. The cloud business also reported accelerated revenue growth and improved margins. Stock selection and an overweight position in the financials sector also helped returns. Shares of Bank of America rose amid expectations for a rising interest rate environment.
Lazard US Small-Mid Cap Equity Portfolio
For the year ended December 31, 2021, the Lazard US Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 19.91%, while Open Shares posted a total return of 19.59%, and R6 Shares posted a total return of 19.95%, as compared with the 18.18% return for the Russell 2500® Index.
Stock selection and a less-than-benchmark exposure to the health care sector contributed to relative performance. Shares of contract research organization ICON rose as the company’s earnings reports in the second half of the year provided validation that scale benefits will accrue as a result of the acquisition of PRA Health Sciences. Stock selection in the energy sector also contributed to relative performance. Magnolia Oil & Gas reported strong earnings and guidance throughout the year, helped by the performance of its Giddings Field unit and cost control measures.
In contrast, stock selection in the financials sector detracted from relative performance. Shares of Metromile fell amid volatility in the pay-per-mile insurance segment. The Portfolio exited the position in May. Stock selection in the consumer discretionary sector also detracted from relative performance. Shares of casual dining restaurant operator Brinker fell, as the rise of COVID-19 variants throughout the year and inflation threatened the pace of recovery for the restaurant industry.
Lazard US Sustainable Equity Portfolio
For the year ended December 31, 2021, the Lazard US Sustainable Equity Portfolio’s Institutional Shares posted a total return of 29.01%, while Open Shares posted a total return of 28.75%, as compared with the 28.71% return for the S&P 500 Index for the period.
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Stock selection in the industrials sector contributed to performance. Shares of Waste Management rose after the company reported solid results, with its core business approaching its pre-pandemic earnings trajectory. The company also benefited from higher commodity prices fueling its recycling business, and management raised guidance due to the synergies from its acquisition of peer Advanced Disposal (ADSW) coming sooner than anticipated. Stock selection in the information technology sector also helped returns. Shares of consulting firm Accenture rose after the company reported quarterly results above expectations and management raised guidance several times during the year, citing strong demand for its services.
In contrast, stock selection in the materials sector detracted from performance. Shares of Ball underperformed on concerns over higher input costs for materials and freight transport. Less-than-benchmark exposure to the energy sector also hurt returns.
Lazard US Systematic Small Cap Equity Portfolio
Since inception on October 29, 2021 through December 31, 2021, the Lazard US Systematic Small Cap Equity Portfolio’s Institutional Shares posted a total return of 2.83%, while Open Shares posted a total return of 2.80%, as compared with the -2.03% return for the Russell 2000 Index for the period.
Stock selection across nearly every sector was positive for the quarter. Attribution from stock selection in the health care and industrials sectors contributed the most to performance.
In contrast, the utilities sector had negative attribution. Sector allocation to the real estate and financials sectors also provided negative attribution.
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The Lazard Funds, Inc. Performance Overviews (unaudited)
Please see the “Notes to the Performance Overviews” for important information about the calculation of total returns, performance information generally, performance differences between Institutional Shares,Open Shares and R6 Shares, and the indexes shown below.
Lazard Developing Markets Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Developing Markets Equity Portfolio and the MSCI Emerging Markets® Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Ten year |
|||||
| Institutional | –10.14% | 9.03% | 4.53% | ||||
| Open | –10.37% | 8.69% | 4.19% | ||||
| MSCI Emerging Markets Index | –2.54% | 9.87% | 5.49% |
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Lazard Emerging Markets Core Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Core Equity Portfolio and the MSCI Emerging Markets Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Since Inception |
† | ||||
| Institutional | -11.21% | 6.80% | 2.78% | ||||
| Open | -11.53% | 6.41% | 2.41% | ||||
| R6 | -11.19% | N/A | -0.05% | ||||
| MSCI Emerging Markets Index | -2.54% | 9.87% | 4.56% (Institutional and Open Shares) 4.02% (R6 Shares) |
| † | The inception date for the Institutional and Open Shares was October 31, 2013 and for the R6 Shares was April 6, 2018. |
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Lazard Emerging Markets Equity Advantage Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Equity Advantage Portfolio and the MSCI Emerging Markets Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Since Inception |
† | ||||
| Institutional | 0.96% | 11.25% | 6.72% | ||||
| Open | 0.63% | 10.93% | 6.40% | ||||
| MSCI Emerging Markets Index | –2.54% | 9.87% | 5.62% |
| † | The inception date for the Portfolio was May 29, 2015. |
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Lazard Emerging Markets Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Equity Portfolio and the MSCI Emerging Markets Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Ten year | Since Inception |
† | |||||
| Institutional | 5.38% | 5.45% | 3.85% | 6.35% | |||||
| Open | 5.13% | 5.19% | 3.58% | 6.05% | |||||
| R6 | 5.44% | 5.46% | N/A | 3.26% | |||||
| MSCI Emerging Markets Index | -2.54% | 9.87% | 5.49 | 5.75% (Institutional Shares) 6.27% (Open Shares) 6.13% (R6 Shares) |
| † | The inception date for the Institutional Shares was July 15, 1994, for the Open Shares was January 8, 1997 and for the R6 Shares was January 19, 2015. |
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Lazard Emerging Markets Strategic Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Strategic Equity Portfolio and the MSCI Emerging Markets Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Ten year |
|||||
| Institutional | –5.54% | 7.65% | 4.29% | ||||
| Open | –5.75% | 7.34% | 4.02% | ||||
| MSCI Emerging Markets Index | –2.54% | 9.87% | 5.49% |
Lazard Equity Franchise Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Equity Franchise Portfolio and the MSCI World® Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Since Inception |
† | |||
| Institutional | 22.76% | 9.90% | |||
| Open | 22.36% | 9.61% | |||
| MSCI World Index | 21.82% | 13.86% |
| † | The inception date for the Portfolio was September 29, 2017. |
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Lazard Global Equity Select Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Equity Select Portfolio and the MSCI ACWI®
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Since Inception |
† | ||||
| Institutional | 19.75% | 15.72% | 10.49% | ||||
| Open | 19.37% | 15.38% | 10.18% | ||||
| MSCI ACWI | 18.54% | 14.40% | 10.04% |
| † | The inception date for the Portfolio was December 31, 2013. |
Lazard Global Listed Infrastructure Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Listed Infrastructure Portfolio, the MSCI World Core Infrastructure (Hedged) Index and the MSCI World Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Ten year |
|||||
| Institutional | 19.87% | 10.24% | 13.11% | ||||
| Open | 19.56% | 9.96% | 12.80% | ||||
| MSCI World Index | 21.82% | 15.03% | 12.70% | ||||
| MSCI World Core Infrastructure (Hedged) Index | 19.70% | 11.35% | 11.34% |
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Lazard Global Strategic Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Strategic Equity Portfolio and the MSCI ACWI
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Since Inception |
† | ||||
| Institutional | 16.13% | 15.51% | 9.96% | ||||
| Open | 15.90% | 15.18% | 9.64% | ||||
| MSCI ACWI | 18.54% | 14.40% | 9.95% |
| † | The inception date for the Portfolio was August 29, 2014. |
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Lazard International Equity Advantage Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Advantage Portfolio and the MSCI EAFE® Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Since Inception |
† | ||||
| Institutional | 13.94% | 8.09% | 4.79% | ||||
| Open | 13.75% | 7.80% | 4.51% | ||||
| MSCI EAFE Index | 11.26% | 9.55% | 5.87% |
| † | The inception date for the Portfolio was May 29, 2015. |
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Lazard International Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Portfolio and the MSCI EAFE Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Ten year | Since Inception |
† | |||||
| Institutional | 6.00% | 8.19% | 7.43% | 6.04% | |||||
| Open | 5.76% | 7.91% | 7.15% | 5.00% | |||||
| R6 | 6.03% | 8.20% | N/A | 4.69% | |||||
| MSCI EAFE Index | 11.26% | 9.55% | 8.03% | 5.68% (Institutional Shares) 5.38% (Open Shares) 6.24% (R6 Shares) |
| † | The inception date for the Institutional Shares was October 29, 1991, for the Open Shares was January 23, 1997 and for the R6 Shares was April 1, 2015. |
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Lazard International Equity Select Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Select Portfolio, the MSCI ACWI ex-US and the MSCI EAFE/ACWI ex-US Linked Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Ten year |
|||||
| Institutional | 3.24% | 8.00% | 6.53% | ||||
| Open | 3.03% | 7.70% | 6.18% | ||||
| MSCI ACWI ex-US | 7.82% | 9.61% | 7.28% | ||||
| MSCI EAFE/ACWI ex-US Linked Index | 7.82% | 9.61% | 7.28% |
Lazard International Equity Value Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Value Portfolio and the MSCI EAFE Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Since Inception |
† | |||
| Institutional | 7.57% | 2.48% | |||
| Open | 7.42% | 2.26% | |||
| MSCI EAFE Index | 11.26% | 10.98% |
| † | The inception date for the Portfolio was October 31, 2018. |
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Lazard International Quality Growth Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Quality Growth Portfolio and the MSCI ACWI ex-US
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Since Inception |
† | |||
| Institutional | 9.99% | 21.04% | |||
| Open | 9.69% | 20.70% | |||
| MSCI ACWI ex-US | 7.82% | 13.18% |
| † | The inception date for the Portfolio was December 31, 2018. |
Lazard International Small Cap Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Small Cap Equity Portfolio and the MSCI EAFE Small Cap® Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Ten year |
|||||
| Institutional | 11.83% | 10.41% | 10.26% | ||||
| Open | 11.61% | 10.15% | 9.96% | ||||
| MSCI EAFE Small Cap Index | 10.10% | 11.04% | 10.80% |
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Lazard International Strategic Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Strategic Equity Portfolio and the MSCI EAFE Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Ten year | Since Inception |
† | |||||
| Institutional | 5.99% | 10.31% | 8.89% | 6.70% | |||||
| Open | 5.67% | 10.01% | 8.62% | 5.57% | |||||
| R6 | 5.93% | 10.30% | N/A | 6.22% | |||||
| MSCI EAFE Index | 11.26% | 9.55% | 8.03% | 5.29% (Institutional Shares) 4.53% (Open Shares) 7.09% (R6 Shares) |
| † | The inception date for the Institutional Shares was October 31, 2005, for the Open Shares was February 3, 2006 and for the R6 Shares was January 19, 2015. |
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Lazard Managed Equity Volatility Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Managed Equity Volatility Portfolio and the MSCI World Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Since Inception |
† | ||||
| Institutional | 19.00% | 8.97% | 7.34% | ||||
| Open | 18.62% | 8.65% | 7.03% | ||||
| MSCI World Index | 21.82% | 15.03% | 11.46% |
| † | The inception date for the Portfolio was May 29, 2015. |
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Lazard US Equity Concentrated Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Equity Concentrated Portfolio, the S&P 500 Index and the Russell 1000 Value/S&P 500 Linked Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Ten year | Since Inception |
† | |||||
| Institutional | 26.02% | 14.44% | 15.04% | 9.79% | |||||
| Open | 25.72% | 14.13% | 14.69% | 9.47% | |||||
| R6 | 26.06% | 14.44% | N/A | 14.09% | |||||
| S&P 500 Index | 28.71% | 18.47% | 16.55% | 10.94% (Institutional and Open Shares) 18.64% (R6 Shares) |
|||||
| Russell 1000 Value/S&P 500 Linked Index | 28.70% | 18.47% | 16.34% | 10.30% (Institutional and Open Shares) N/A (R6 Shares) |
| † | The inception date for the Institutional and Open Shares was September 30, 2005 and for the R6 Shares was November 15, 2016. |
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Lazard US Equity Focus Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Equity Select Portfolio and the S&P 500 Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Ten year | Since Inception |
† | |||||
| Institutional | 27.36% | 17.63% | 14.81% | 9.51% | |||||
| Open | 26.96% | 17.28% | 14.48% | 9.19% | |||||
| R6 | 27.34% | 17.63% | N/A | 13.52% | |||||
| S&P 500 Index | 28.71% | 18.47% | 16.55% | 10.59% (Institutional and Open Shares) 15.14% (R6 Shares) |
| † | The inception date for the Institutional and Open Shares was December 30, 2004 and for the R6 Shares was May 19, 2014. |
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Lazard US Small-Mid Cap Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Small-Mid Cap Equity Portfolio and the Russell 2500 Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Five year | Ten year | Since Inception |
† | |||||
| Institutional | 19.91% | 10.45% | 12.56% | 10.89% | |||||
| Open | 19.59% | 10.10% | 12.20% | 8.68% | |||||
| R6 | 19.95% | N/A | N/A | 13.21% | |||||
| Russell 2500 Index | 18.18% | 13.75% | 14.15% | 11.38% (Institutional Shares) 10.21% (Open Shares) 19.34% (R6 Shares) |
| † | The inception date for the Institutional Shares was October 30, 1991, for the Open Shares was January 30, 1997 and for the R6 Shares was January 8, 2020. |
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Lazard US Sustainable Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Sustainable Equity Portfolio and the S&P 500 Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One year | Since Inceptionx |
† | |||
| Institutional | 29.01% | 35.70% | |||
| Open | 28.75% | 35.30% | |||
| S&P 500 Index | 28.71% | 35.21% |
| † | The inception date for the Institutional Shares and Open Shares was June 30, 2020. |
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Lazard US Systematic Small Cap Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Systematic Small Cap Equity Portfolio and the Russell 2000 Index
Average Annual Total Returns
Periods Ended December 31, 2021
| Since Inception |
† | ||
| Institutional | 2.83% | ||
| Open | 2.80% | ||
| Russell 2000 Index | –2.03% |
| † | The inception date for the Institutional Shares and Open Shares was October 29, 2021. |
| Notes to Performance Overviews: |
Information About Portfolio Performance Shown Above
Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s administrator (“State Street”), or DST Asset Manager Solutions, Inc., the Fund’s transfer agent and dividend disbursement agent (“DST”); without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
Performance results do not include adjustments made for financial reporting purposes in accordance with US Generally Accepted Accounting Principles (“GAAP”), if any, and also exclude one-time adjustments related to the receipt of settlement proceeds by the Lazard International Equity, Lazard International Small Cap Equity and Lazard Developing Markets Equity Portfolios from a class action lawsuit. For the Lazard Developing Markets Equity Portfolio, these proceeds impacted the total return of Open Shares but did not impact that of Institutional Shares; amounts may differ from amounts reported in the financial highlights.
The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of an investment in a Portfolio will fluctuate, so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated, there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graphs and tables above do not reflect the deduction of taxes that a shareholder would pay on a Portfolio’s distributions or the redemption of Portfolio shares.
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The performance of Institutional Shares, Open Shares and R6 Shares of a Portfolio, as applicable, may vary, primarily based on the differences in fees borne by shareholders investing in different classes of a Portfolio.
Information About Index Performance Shown Above
The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The indices are unmanaged, have no fees or costs and are not available for investment.
The MSCI Emerging Markets Index is a free-float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The MSCI Emerging Markets Index consists of 27 emerging markets country indices.
The MSCI World Index is a free-float-adjusted market capitalization index that is designed to measure global developed markets equity performance. The MSCI World Index consists of 23 developed markets country indices.
The MSCI ACWI is a free-float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 50 country indices comprising 23 developed and 27 emerging markets country indices.
The MSCI World Core Infrastructure (Hedged) Index (the “Infrastructure Index”) captures large and mid-cap securities across the 23 developed market countries. The Infrastructure Index is designed to represent the performance of listed companies within the developed markets that are engaged in core industrial infrastructure activities. However, note that the Lazard Global Listed Infrastructure Portfolio invests in a range of companies globally, and is not limited to investing in developed markets countries.
The MSCI EAFE Index is a free-float-adjusted market capitalization index that is designed to measure developed markets equity performance, excluding the United States and Canada. The MSCI EAFE Index consists of 21 developed markets country indices.
The MSCI ACWI ex-US is a free-float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. The MSCI ACWI ex-US consists of 49 country indices comprising 22 developed and 27 emerging markets country indices.
The MSCI EAFE/ACWI ex-US Linked Index is an unmanaged index created by the Investment Manager which links the performance of the MSCI EAFE Index for all periods through June 30, 2010 (when the Lazard International Equity Select Portfolio’s benchmark index changed) and the MSCI ACWI ex-US for all periods thereafter.
The MSCI EAFE Small Cap Index targets all companies with market capitalizations below that of the companies in the MSCI EAFE Index and up to 99% coverage of the free-float-adjusted market capitalization in each market (subject to minimum investability criteria and a universal minimum size range). The MSCI EAFE Small Cap Index consists of 21 developed markets country indices.
The S&P 500 Index is a market capitalization-weighted index of 500 companies in leading industries of the US economy.
The Russell 1000 Value/S&P 500 Linked Index is an unmanaged index created by the Investment Manager which links the performance of the Russell 1000® Value Index for
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all periods through May 30, 2012 (when the Lazard US Equity Concentrated Portfolio’s investment strategy changed) and the S&P 500 Index for all periods thereafter.
The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index measures the performance of the large-cap segment of the US equity universe. It includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership.
The Russell 2000 Index measures the performance of the small-cap segment of the US equity universe. The Russell 2000 Index is a subset of the Russell 3000 Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
The Russell 2500 Index measures the performance of the small-to mid-cap segment of the US equity universe, commonly referred to as “smid” cap. The Russell 2500 Index is a subset of the Russell 3000® Index. The Russell 3000 Index measures the performance of the largest 3000 US companies, representing approximately 98% of the investable US equity market. The Russell 2500 Index includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership.
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The Lazard Funds, Inc.
Information About Your Portfolio’s Expenses (unaudited)
Expense Example
As a shareholder in a Portfolio, you incur ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2021 through December 31, 2021 and held for the entire period.
Actual Expenses
For each share class of the Portfolios, the first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each share class of the Portfolios, the second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
Annual Report 45
| Ending | Annualized | |||||||||
| Beginning | Account | Expenses Paid | Expense Ratio | |||||||
| Account Value | Value | During Period* | During Period | |||||||
| Portfolio | 7/1/21 | 12/31/21 | 7/1/21 - 12/31/21 | 7/1/21 - 12/31/21 | ||||||
| Developing Markets Equity | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 875.30 | $5.39 | 1.14% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.46 | $5.80 | 1.14% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 874.00 | $6.61 | 1.40% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,018.15 | $7.12 | 1.40% | |||||
| Emerging Markets Core Equity | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 857.80 | $5.53 | 1.18% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.26 | $6.01 | 1.18% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 856.00 | $7.02 | 1.50% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,017.64 | $7.63 | 1.50% | |||||
| R6 Shares | ||||||||||
| Actual | $1,000.00 | $ | 857.40 | $5.52 | 1.18% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.26 | $6.01 | 1.18% | |||||
| Emerging Markets Equity Advantage | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 909.90 | $4.33 | 0.90% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.67 | $4.58 | 0.90% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 908.20 | $5.53 | 1.15% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.41 | $5.85 | 1.15% | |||||
46 Annual Report
| Ending | Annualized | |||||||||
| Beginning | Account | Expenses Paid | Expense Ratio | |||||||
| Account Value | Value | During Period* | During Period | |||||||
| Portfolio | 7/1/21 | 12/31/21 | 7/1/21 - 12/31/21 | 7/1/21 - 12/31/21 | ||||||
| Emerging Markets Equity | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 951.00 | $5.07 | 1.03% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.01 | $5.24 | 1.03% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 950.10 | $6.29 | 1.28% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,018.75 | $6.51 | 1.28% | |||||
| R6 Shares | ||||||||||
| Actual | $1,000.00 | $ | 951.50 | $4.92 | 1.00% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.16 | $5.09 | 1.00% | |||||
| Emerging Markets Strategic Equity | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 902.10 | $5.51 | 1.15% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.41 | $5.85 | 1.15% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 901.50 | $6.71 | 1.40% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,018.15 | $7.12 | 1.40% | |||||
| Equity Franchise | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,050.00 | $4.91 | 0.95% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.42 | $4.84 | 0.95% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,047.40 | $6.19 | 1.20% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.16 | $6.11 | 1.20% | |||||
Annual Report 47
| Ending | Annualized | |||||||||
| Beginning | Account | Expenses Paid | Expense Ratio | |||||||
| Account Value | Value | During Period* | During Period | |||||||
| Portfolio | 7/1/21 | 12/31/21 | 7/1/21 - 12/31/21 | 7/1/21 - 12/31/21 | ||||||
| Global Equity Select | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,066.80 | $4.32 | 0.83% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.02 | $4.23 | 0.83% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,065.20 | $5.99 | 1.15% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.41 | $5.85 | 1.15% | |||||
| Global Listed Infrastructure | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,104.10 | $5.09 | 0.96% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.37 | $4.89 | 0.96% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,102.60 | $6.41 | 1.21% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.11 | $6.16 | 1.21% | |||||
| Global Strategic Equity | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,052.00 | $4.91 | 0.95% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.42 | $4.84 | 0.95% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,048.20 | $8.78 | 1.70% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,016.64 | $8.64 | 1.70% | |||||
| International Equity Advantage | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,018.10 | $4.58 | 0.90% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.67 | $4.58 | 0.90% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,017.30 | $5.85 | 1.15% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.41 | $5.85 | 1.15% | |||||
48 Annual Report
| Ending | Annualized | |||||||||
| Beginning | Account | Expenses Paid | Expense Ratio | |||||||
| Account Value | Value | During Period* | During Period | |||||||
| Portfolio | 7/1/21 | 12/31/21 | 7/1/21 - 12/31/21 | 7/1/21 - 12/31/21 | ||||||
| International Equity | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,005.20 | $4.09 | 0.81% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.12 | $4.13 | 0.81% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,004.10 | $5.35 | 1.06% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.86 | $5.40 | 1.06% | |||||
| R6 Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,005.40 | $4.09 | 0.81% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.12 | $4.13 | 0.81% | |||||
| International Equity Select | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 985.40 | $4.25 | 0.85% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.92 | $4.33 | 0.85% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 984.40 | $5.75 | 1.15% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.41 | $5.85 | 1.15% | |||||
| International Equity Value | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 983.30 | $4.75 | 0.95% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.42 | $4.84 | 0.95% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 981.90 | $5.99 | 1.20% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.16 | $6.11 | 1.20% | |||||
Annual Report 49
| Ending | Annualized | |||||||||
| Beginning | Account | Expenses Paid | Expense Ratio | |||||||
| Account Value | Value | During Period* | During Period | |||||||
| Portfolio | 7/1/21 | 12/31/21 | 7/1/21 - 12/31/21 | 7/1/21 - 12/31/21 | ||||||
| International Quality Growth | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 996.40 | $4.28 | 0.85% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.92 | $4.33 | 0.85% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 994.90 | $5.53 | 1.10% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.66 | $5.60 | 1.10% | |||||
| International Small Cap Equity | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 999.10 | $5.49 | 1.09% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.71 | $5.55 | 1.09% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 998.50 | $6.80 | 1.35% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,018.40 | $6.87 | 1.35% | |||||
| International Strategic Equity | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 986.10 | $4.05 | 0.81% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.12 | $4.13 | 0.81% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 984.90 | $5.30 | 1.06% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.86 | $5.40 | 1.06% | |||||
| R6 Shares | ||||||||||
| Actual | $1,000.00 | $ | 985.60 | $4.05 | 0.81% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.12 | $4.13 | 0.81% | |||||
50 Annual Report
| Ending | Annualized | |||||||||
| Beginning | Account | Expenses Paid | Expense Ratio | |||||||
| Account Value | Value | During Period* | During Period | |||||||
| Portfolio | 7/1/21 | 12/31/21 | 7/1/21 - 12/31/21 | 7/1/21 - 12/31/21 | ||||||
| Managed Equity Volatility | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,082.50 | $3.94 | 0.75% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.42 | $3.82 | 0.75% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,081.50 | $5.25 | 1.00% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.16 | $5.09 | 1.00% | |||||
| US Equity Concentrated | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,087.90 | $4.00 | 0.76% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.37 | $3.87 | 0.76% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,086.90 | $5.37 | 1.02% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.06 | $5.19 | 1.02% | |||||
| R6 Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,088.00 | $4.00 | 0.76% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.37 | $3.87 | 0.76% | |||||
| US Equity Focus | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,090.80 | $3.69 | 0.70% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.68 | $3.57 | 0.70% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,089.00 | $5.00 | 0.95% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.42 | $4.84 | 0.95% | |||||
| R6 Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,090.70 | $3.69 | 0.70% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.68 | $3.57 | 0.70% | |||||
Annual Report 51
| Ending | Annualized | |||||||||
| Beginning | Account | Expenses Paid | Expense Ratio | |||||||
| Account Value | Value | During Period* | During Period | |||||||
| Portfolio | 7/1/21 | 12/31/21 | 7/1/21 - 12/31/21 | 7/1/21 - 12/31/21 | ||||||
| US Small-Mid Cap Equity | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,025.00 | $4.64 | 0.91% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.62 | $4.63 | 0.91% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,023.60 | $6.07 | 1.19% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.21 | $6.06 | 1.19% | |||||
| R6 Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,025.30 | $4.65 | 0.91% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.62 | $4.63 | 0.91% | |||||
| US Sustainable Equity | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,125.00 | $4.02 | 0.75% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.42 | $3.82 | 0.75% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,123.70 | $5.30 | 0.99% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.21 | $5.04 | 0.99% | |||||
| US Systematic Small Cap Equity† | ||||||||||
| Institutional Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,028.30 | $1.53 | 0.90% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,006.85 | $1.51 | 0.90% | |||||
| Open Shares | ||||||||||
| Actual | $1,000.00 | $ | 1,028.00 | $1.95 | 1.15% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,006.43 | $1.93 | 1.15% | |||||
| * | Expenses are equal to the annualized expense ratio, net of expenses waivers and reimbursements, of each share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
| † | The Portfolio commenced operations on October 29, 2021. |
52 Annual Report
The Lazard Funds, Inc.
Portfolio Holdings Presented by Asset Class/Sector December 31, 2021
| Lazard | ||||||||||||||||
| Lazard | Lazard | Emerging | Lazard | |||||||||||||
| Developing | Emerging | Markets | Emerging | |||||||||||||
| Markets | Markets | Equity | Markets | |||||||||||||
| Equity | Core Equity | Advantage | Equity | |||||||||||||
| Asset Class/Sector* | Portfolio | Portfolio | Portfolio | Portfolio† | ||||||||||||
| Equity | ||||||||||||||||
| Communication Services | 6.5 | % | 12.3 | % | 10.5 | % | 7.5 | % | ||||||||
| Consumer Discretionary | 17.5 | 16.9 | 13.7 | 8.5 | ||||||||||||
| Consumer Staples | 2.5 | 4.5 | 4.3 | 6.9 | ||||||||||||
| Energy | 2.7 | 5.2 | 6.0 | 9.9 | ||||||||||||
| Financials | 25.6 | 16.7 | 18.9 | 27.4 | ||||||||||||
| Health Care | 0.8 | 2.2 | 5.0 | 2.3 | ||||||||||||
| Industrials | 9.7 | 4.4 | 4.7 | 3.1 | ||||||||||||
| Information Technology | 27.6 | 26.0 | 24.7 | 21.8 | ||||||||||||
| Materials | 4.3 | 9.7 | 7.7 | 7.7 | ||||||||||||
| Real Estate | — | — | 0.8 | 1.9 | ||||||||||||
| Utilities | — | — | 2.6 | 0.6 | ||||||||||||
| Short-Term Investments | 2.8 | 2.1 | 1.1 | 2.4 | ||||||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0. | % | 100.0 | % | ||||||||
| Lazard | ||||||||||||||||
| Emerging | Lazard | Lazard | Lazard | |||||||||||||
| Markets | Equity | Global | Global Listed | |||||||||||||
| Strategic Equity | Franchise | Equity Select | Infrastructure | |||||||||||||
| Asset Class/Sector* | Portfolio | Portfolio | Portfolio | Portfolio | ||||||||||||
| Equity | ||||||||||||||||
| Communication Services | 11.8 | % | 10.2 | % | 7.0 | % | 4.0 | % | ||||||||
| Consumer Discretionary | 15.6 | 17.5 | 15.7 | — | ||||||||||||
| Consumer Staples | 6.4 | 2.0 | 11.3 | — | ||||||||||||
| Energy | 5.6 | — | — | — | ||||||||||||
| Financials | 21.3 | — | 15.0 | — | ||||||||||||
| Health Care | 2.7 | 25.3 | 13.9 | — | ||||||||||||
| Industrials | 2.6 | 21.4 | 15.1 | 32.4 | ||||||||||||
| Information Technology | 20.8 | 10.2 | 20.2 | — | ||||||||||||
| Materials | 8.2 | — | 0.9 | — | ||||||||||||
| Real Estate | 0.9 | — | — | — | ||||||||||||
| Utilities | 2.0 | 7.1 | — | 55.2 | ||||||||||||
| Short-Term Investments | 2.1 | 6.3 | 0.9 | 8.4 | ||||||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| * | Represents percentage of total investments. |
| † | Equity sector breakdown is based upon the underlying holdings of exchange-traded funds held by the Portfolio. |
Annual Report 53
| Lazard | Lazard | |||||||||||||||
| Global | International | Lazard | Lazard | |||||||||||||
| Strategic | Equity | International | International | |||||||||||||
| Equity | Advantage | Equity | Equity Select | |||||||||||||
| Asset Class/Sector* | Portfolio | Portfolio | Portfolio | Portfolio | ||||||||||||
| Equity | ||||||||||||||||
| Communication Services | 11.6 | % | 4.8 | % | 4.4 | % | 5.9 | % | ||||||||
| Consumer Discretionary | 6.7 | 12.3 | 12.6 | 12.8 | ||||||||||||
| Consumer Staples | 3.0 | 8.6 | 9.1 | 6.7 | ||||||||||||
| Energy | — | 3.7 | 4.6 | 6.3 | ||||||||||||
| Financials | 13.0 | 17.0 | 13.3 | 14.2 | ||||||||||||
| Health Care | 19.9 | 14.0 | 10.5 | 7.6 | ||||||||||||
| Industrials | 10.9 | 16.1 | 18.7 | 19.2 | ||||||||||||
| Information Technology | 29.1 | 11.3 | 6.8 | 8.1 | ||||||||||||
| Materials | 4.5 | 6.1 | 6.5 | 6.0 | ||||||||||||
| Real Estate | — | 2.5 | 3.9 | 1.1 | ||||||||||||
| Utilities | 0.9 | 3.0 | 6.3 | 7.3 | ||||||||||||
| Short-Term Investments | 0.4 | 0.6 | 3.3 | 4.8 | ||||||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| Lazard | Lazard | |||||||||||||||
| Lazard | Lazard | International | International | |||||||||||||
| International | International | Small Cap | Strategic | |||||||||||||
| Equity Value | Quality Growth | Equity | Equity | |||||||||||||
| Asset Class/Sector* | Portfolio | Portfolio | Portfolio | Portfolio | ||||||||||||
| Equity | ||||||||||||||||
| Communication Services | 5.9 | % | 8.4 | % | 3.6 | % | 3.8 | % | ||||||||
| Consumer Discretionary | 20.3 | 13.4 | 13.8 | 15.5 | ||||||||||||
| Consumer Staples | 10.6 | 12.3 | 7.0 | 9.6 | ||||||||||||
| Energy | 4.6 | — | 1.6 | 1.8 | ||||||||||||
| Financials | 25.8 | 20.8 | 13.4 | 18.5 | ||||||||||||
| Health Care | 4.5 | 9.0 | 7.5 | 7.1 | ||||||||||||
| Industrials | 17.2 | 18.4 | 21.5 | 20.2 | ||||||||||||
| Information Technology | 1.4 | 16.0 | 11.0 | 7.9 | ||||||||||||
| Materials | 5.4 | — | 6.1 | 5.7 | ||||||||||||
| Real Estate | — | — | 11.6 | 3.1 | ||||||||||||
| Utilities | 4.3 | — | 2.5 | 5.1 | ||||||||||||
| Short-Term Investments | — | 1.7 | 0.4 | 1.7 | ||||||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| * | Represents percentage of total investments. |
54 Annual Report
| Lazard | ||||||||||||||||
| Managed | Lazard | Lazard | Lazard US | |||||||||||||
| Equity | US Equity | US Equity | Small-Mid | |||||||||||||
| Volatility | Concentrated | Focus | Cap Equity | |||||||||||||
| Asset Class/Sector* | Portfolio | Portfolio | Portfolio | Portfolio | ||||||||||||
| Equity | ||||||||||||||||
| Communication Services | 10.6 | % | 7.7 | % | 7.2 | % | 4.5 | % | ||||||||
| Consumer Discretionary | 8.2 | 12.3 | 18.2 | 11.9 | ||||||||||||
| Consumer Staples | 17.3 | 6.8 | 2.7 | 3.7 | ||||||||||||
| Energy | 1.3 | — | — | 4.3 | ||||||||||||
| Financials | 7.8 | 9.1 | 18.1 | 13.0 | ||||||||||||
| Health Care | 18.5 | 9.2 | 18.3 | 12.5 | ||||||||||||
| Industrials | 7.5 | 14.8 | 11.9 | 18.2 | ||||||||||||
| Information Technology | 12.7 | 25.3 | 21.5 | 14.8 | ||||||||||||
| Materials | 2.3 | 3.6 | — | 7.0 | ||||||||||||
| Real Estate | 6.4 | 10.2 | — | 8.3 | ||||||||||||
| Utilities | 6.8 | — | — | 1.8 | ||||||||||||
| Short-Term Investments | 0.6 | 1.0 | 2.1 | — | ||||||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| Lazard US | ||||||||||||||||
| Lazard US | Systematic | |||||||||||||||
| Sustainable | Small Cap | |||||||||||||||
| Equity | Equity | |||||||||||||||
| Asset Class/Sector* | Portfolio | Portfolio | ||||||||||||||
| Equity | ||||||||||||||||
| Communication Services | 1.3 | % | 3.5 | % | ||||||||||||
| Consumer Discretionary | 10.6 | 12.1 | ||||||||||||||
| Consumer Staples | 4.0 | 5.7 | ||||||||||||||
| Energy | — | 1.4 | ||||||||||||||
| Financials | 10.7 | 9.1 | ||||||||||||||
| Health Care | 23.2 | 16.3 | ||||||||||||||
| Industrials | 12.2 | 17.6 | ||||||||||||||
| Information Technology | 28.8 | 17.7 | ||||||||||||||
| Materials | 4.1 | 7.1 | ||||||||||||||
| Real Estate | 2.5 | 5.1 | ||||||||||||||
| Utilities | — | 1.3 | ||||||||||||||
| Short-Term Investments | 2.6 | 3.1 | ||||||||||||||
| Total Investments | 100.0 | % | 100.0 | % | ||||||||||||
| * | Represents percentage of total investments. |
Annual Report 55
The Lazard Funds, Inc. Portfolios of Investments
December 31, 2021
The accompanying notes are an integral part of these financial statements.
56 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Developing Markets Equity Portfolio (continued) | ||||||||
| Hungary | 0.8% | ||||||||
| Richter Gedeon Nyrt. | 48,092 | $ | 1,293,497 | |||||
| India | 11.5% | ||||||||
| Bajaj Finance, Ltd. | 20,678 | 1,941,164 | ||||||
| HDFC Bank, Ltd. ADR | 48,379 | 3,148,022 | ||||||
| ICICI Bank, Ltd. Sponsored ADR | 286,076 | 5,661,444 | ||||||
| Motherson Sumi Systems, Ltd. | 440,465 | 1,323,381 | ||||||
| Mphasis, Ltd. | 28,003 | 1,278,529 | ||||||
| Reliance Industries, Ltd. | 86,250 | 2,746,104 | ||||||
| UPL, Ltd. | 199,022 | 1,991,256 | ||||||
| 18,089,900 | ||||||||
| Indonesia | 3.6% | ||||||||
| PT Bank Central Asia Tbk | 4,653,500 | 2,358,222 | ||||||
| PT Bank Rakyat Indonesia (Persero) Tbk | 11,639,249 | 3,355,003 | ||||||
| 5,713,225 | ||||||||
| Mexico | 2.8% | ||||||||
| Grupo Financiero Banorte SAB de CV, Class O | 674,557 | 4,382,290 | ||||||
| Peru | 0.7% | ||||||||
| Credicorp, Ltd. | 9,061 | 1,106,076 | ||||||
| Philippines | 2.5% | ||||||||
| BDO Unibank, Inc. | 855,675 | 2,025,262 | ||||||
| International Container Terminal Services, Inc. | 476,429 | 1,868,414 | ||||||
| 3,893,676 | ||||||||
| Poland | 0.7% | ||||||||
| InPost SA | 96,930 | 1,170,868 | ||||||
| Russia | 4.9% | ||||||||
| Fix Price Group, Ltd. GDR | 201,160 | 1,516,623 | ||||||
| Novatek PJSC Sponsored GDR | 6,562 | 1,531,915 | ||||||
| Sberbank of Russia PJSC (‡) | 767,827 | 2,997,121 | ||||||
| VK Co, Ltd. GDR (*) | 32,462 | 375,769 | ||||||
| Yandex NV Class A (*) | 21,788 | 1,318,174 | ||||||
| 7,739,602 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 57
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Developing Markets Equity Portfolio (continued) | ||||||||
| South Africa | 4.7% | ||||||||
| Capitec Bank Holdings, Ltd. | 26,721 | $ | 3,420,222 | |||||
| Standard Bank Group, Ltd. | 306,768 | 2,694,952 | ||||||
| The Foschini Group, Ltd. (*) | 160,765 | 1,250,226 | ||||||
| 7,365,400 | ||||||||
| South Korea | 12.7% | ||||||||
| CJ Logistics Corp. (*) | 14,083 | 1,484,959 | ||||||
| NAVER Corp. | 3,369 | 1,069,551 | ||||||
| Samsung Electronics Co., Ltd. | 151,325 | 9,934,508 | ||||||
| SK Hynix, Inc. | 45,690 | 4,999,023 | ||||||
| WONIK IPS Co., Ltd. | 71,843 | 2,535,892 | ||||||
| 20,023,933 | ||||||||
| Taiwan | 16.3% | ||||||||
| ASE Technology Holding Co., Ltd. | 993,289 | 3,807,861 | ||||||
| Bizlink Holding, Inc. | 246,000 | 2,313,839 | ||||||
| Chroma ATE, Inc. | 304,000 | 2,193,039 | ||||||
| Hiwin Technologies Corp. | 137,844 | 1,523,300 | ||||||
| Lotes Co., Ltd. | 66,000 | 1,808,107 | ||||||
| MediaTek, Inc. | 44,000 | 1,881,203 | ||||||
| RichWave Technology Corp. | 214,000 | 2,108,365 | ||||||
| Silicon Motion Technology Corp. ADR | 38,616 | 3,669,679 | ||||||
| Taiwan Semiconductor Manufacturing Co., Ltd. | 286,000 | 6,332,828 | ||||||
| 25,638,221 | ||||||||
| United States | 1.4% | ||||||||
| JS Global Lifestyle Co., Ltd. | 1,341,500 | 2,261,392 | ||||||
| Zambia | 2.2% | ||||||||
| First Quantum Minerals, Ltd. | 144,249 | 3,451,850 | ||||||
| Total Common Stocks (Cost $116,097,825) | 153,512,228 | |||||||
| Short-Term Investments | 2.8% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $4,388,096) | 4,388,096 | 4,388,096 | ||||||
The accompanying notes are an integral part of these financial statements.
58 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Developing Markets Equity Portfolio (concluded) | ||||||||
| Total Investments | 100.2% (Cost $120,485,921) | $ | 157,900,324 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.2)% | (287,493 | ) | ||||||
| Net Assets | 100.0% | $ | 157,612,831 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 59
The accompanying notes are an integral part of these financial statements.
60 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Core Equity Portfolio (continued) | ||||||||
| Shenzhou International Group Holdings, Ltd. | 120,191 | $ | 2,310,721 | |||||
| Tencent Holdings, Ltd. | 153,900 | 9,028,271 | ||||||
| Tencent Music Entertainment Group ADR (*) | 49,452 | 338,746 | ||||||
| Wuxi Biologics Cayman, Inc. (*) | 118,000 | 1,402,595 | ||||||
| Wuxi Lead Intelligent Equipment Co., Ltd., Class A | 162,600 | 1,896,942 | ||||||
| XPeng, Inc., Class A | 70,400 | 1,770,637 | ||||||
| Yum China Holdings, Inc. | 28,035 | 1,397,265 | ||||||
| Zai Lab, Ltd. ADR (*) | 5,039 | 316,701 | ||||||
| 42,858,517 | ||||||||
| Hong Kong | 1.4% | ||||||||
| Techtronic Industries Co., Ltd. | 116,000 | 2,309,059 | ||||||
| India | 15.7% | ||||||||
| HDFC Bank, Ltd. ADR | 73,948 | 4,811,796 | ||||||
| Hindalco Industries, Ltd. | 387,530 | 2,479,662 | ||||||
| ICICI Bank, Ltd. Sponsored ADR | 62,447 | 1,235,826 | ||||||
| Infosys, Ltd. Sponsored ADR | 139,997 | 3,543,324 | ||||||
| Larsen & Toubro, Ltd. | 68,578 | 1,740,142 | ||||||
| Maruti Suzuki India, Ltd. | 13,118 | 1,309,683 | ||||||
| Motherson Sumi Systems, Ltd. | 380,607 | 1,143,538 | ||||||
| Reliance Industries, Ltd. | 81,861 | 2,606,363 | ||||||
| Star Health & Allied Insurance Co., Ltd. | 178,896 | 1,895,557 | ||||||
| UPL, Ltd. | 280,336 | 2,804,819 | ||||||
| WNS Holdings, Ltd. ADR (*) | 14,995 | 1,322,859 | ||||||
| 24,893,569 | ||||||||
| Indonesia | 2.1% | ||||||||
| PT Bank Mandiri (Persero) Tbk | 2,960,500 | 1,458,835 | ||||||
| PT Telkom Indonesia (Persero) Tbk ADR | 64,996 | 1,884,234 | ||||||
| 3,343,069 | ||||||||
| Mexico | 4.7% | ||||||||
| Arca Continental SAB de CV | 270,745 | 1,725,850 | ||||||
| Cemex SAB de CV Sponsored ADR (*) | 382,565 | 2,593,791 | ||||||
| Grupo Aeroportuario del Pacifico SAB de CV ADR | 13,797 | 1,896,673 | ||||||
| Grupo Financiero Banorte SAB de CV, Class O | 198,300 | 1,288,265 | ||||||
| 7,504,579 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 61
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Core Equity Portfolio (continued) | ||||||||
| Philippines | 1.0% | ||||||||
| BDO Unibank, Inc. | 647,221 | $ | 1,531,881 | |||||
| Poland | 1.7% | ||||||||
| CD Projekt SA | 11,117 | 529,443 | ||||||
| KGHM Polska Miedz SA | 61,436 | 2,126,415 | ||||||
| 2,655,858 | ||||||||
| Russia | 5.3% | ||||||||
| Fix Price Group, Ltd. GDR | 88,682 | 668,608 | ||||||
| LUKOIL PJSC Sponsored ADR | 47,836 | 4,269,154 | ||||||
| LUKOIL PJSC Sponsored ADR (United States) | 761 | 68,338 | ||||||
| Sberbank of Russia PJSC Sponsored ADR | 53,682 | 845,491 | ||||||
| Sberbank of Russia PJSC Sponsored ADR (London) | 89,516 | 1,432,758 | ||||||
| Yandex NV, Class A (*) | 18,410 | 1,113,805 | ||||||
| 8,398,154 | ||||||||
| South Africa | 1.4% | ||||||||
| Anglo American PLC | 44,734 | 1,831,091 | ||||||
| Naspers, Ltd., N Shares | 2,451 | 380,325 | ||||||
| 2,211,416 | ||||||||
| South Korea | 12.1% | ||||||||
| DB Insurance Co., Ltd. | 18,594 | 842,187 | ||||||
| LG Chem, Ltd. | 2,352 | 1,213,511 | ||||||
| NAVER Corp. | 4,155 | 1,319,081 | ||||||
| NCSoft Corp. | 2,025 | 1,093,380 | ||||||
| Orion Corp. | 10,385 | 903,648 | ||||||
| Samsung Electronics Co., Ltd. | 149,252 | 9,798,416 | ||||||
| Samsung SDI Co., Ltd. | 2,933 | 1,606,505 | ||||||
| SK Hynix, Inc. | 21,928 | 2,399,181 | ||||||
| 19,175,909 | ||||||||
| Taiwan | 15.9% | ||||||||
| Accton Technology Corp. | 102,000 | 958,672 | ||||||
| Eclat Textile Co., Ltd. | 66,789 | 1,520,596 | ||||||
| Feng TAY Enterprise Co., Ltd. | 60,000 | 500,905 | ||||||
| Micro-Star International Co., Ltd. | 239,000 | 1,382,552 | ||||||
| Nien Made Enterprise Co., Ltd. | 82,000 | 1,222,755 | ||||||
The accompanying notes are an integral part of these financial statements.
62 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Core Equity Portfolio (concluded) | ||||||||
| Realtek Semiconductor Corp. | 59,000 | $ | 1,237,137 | |||||
| Sea, Ltd. ADR (*) | 5,286 | 1,182,531 | ||||||
| Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR | 143,631 | 17,280,246 | ||||||
| 25,285,394 | ||||||||
| Thailand | 1.0% | ||||||||
| Home Product Center Public Co. Ltd. (‡) | 3,545,400 | 1,538,940 | ||||||
| United Kingdom | 1.4% | ||||||||
| Unilever PLC Sponsored ADR | 40,314 | 2,168,490 | ||||||
| Total Common Stocks (Cost $117,737,207) | 156,104,750 | |||||||
| Short-Term Investments | 2.1% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $3,388,723) | 3,388,723 | 3,388,723 | ||||||
| Total Investments | 100.5% (Cost $121,125,930) | $ | 159,493,473 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.5)% | (785,825 | ) | ||||||
| Net Assets | 100.0% | $ | 158,707,648 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 63
The accompanying notes are an integral part of these financial statements.
64 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| CITIC, Ltd. | 125,000 | $ | 123,544 | |||||
| Contemporary Amperex Technology Co., Ltd., Class A | 1,600 | 147,564 | ||||||
| COSCO SHIPPING Holdings Co., Ltd., Class H (*) | 167,300 | 324,840 | ||||||
| CSPC Pharmaceutical Group, Ltd. | 369,840 | 401,863 | ||||||
| Daan Gene Co., Ltd., Class A | 56,880 | 179,119 | ||||||
| East Money Information Co., Ltd. Class A | 32,095 | 186,835 | ||||||
| GD Power Development Co., Ltd. Class A | 234,500 | 116,521 | ||||||
| GF Securities Co., Ltd., Class H | 70,200 | 133,758 | ||||||
| Gigadevice Semiconductor Beijing, Inc., Class A | 5,800 | 159,759 | ||||||
| Haidilao International Holding, Ltd. | 51,000 | 115,223 | ||||||
| Haier Smart Home Co., Ltd. Class H | 50,400 | 213,000 | ||||||
| Industrial & Commercial Bank of China, Ltd., Class H | 701,000 | 395,730 | ||||||
| Inner Mongolia Yili Industrial Group Co., Ltd. Class A | 35,800 | 232,707 | ||||||
| JD.com, Inc. ADR (*) | 10,397 | 728,518 | ||||||
| Jiangsu Hengli Hydraulic Co., Ltd., Class A | 13,300 | 170,950 | ||||||
| Lenovo Group, Ltd. | 426,000 | 489,557 | ||||||
| Li Auto, Inc. ADR (*) | 3,892 | 124,933 | ||||||
| Li Ning Co., Ltd. | 53,000 | 580,001 | ||||||
| Lufax Holding, Ltd. ADR (*) | 15,483 | 87,169 | ||||||
| Meituan, Class B (*) | 27,600 | 797,913 | ||||||
| Metallurgical Corp. of China, Ltd., Class H | 439,000 | 112,045 | ||||||
| NetEase, Inc. ADR | 6,086 | 619,433 | ||||||
| New China Life Insurance Co., Ltd., Class H | 120,600 | 322,554 | ||||||
| NIO, Inc. ADR (*) | 6,466 | 204,843 | ||||||
| Oppein Home Group, Inc., Class A | 15,200 | 351,681 | ||||||
| PetroChina Co., Ltd., Class H | 1,140,000 | 507,716 | ||||||
| Pharmaron Beijing Co., Ltd., Class H | 9,500 | 146,565 | ||||||
| Pinduoduo, Inc. ADR (*) | 2,792 | 162,774 | ||||||
| Shanghai Bairun Investment Holding Group Co., Ltd., Class A | 9,940 | 93,323 | ||||||
| Shanxi Taigang Stainless Steel Co., Ltd. Class A | 98,500 | 108,786 | ||||||
| Shenyang Xingqi Pharmaceutical Co., Ltd. Class A | 6,200 | 133,035 | ||||||
| Shenzhen Inovance Technology Co., Ltd., Class A | 10,600 | 114,070 | ||||||
| Shenzhen Mindray Bio-Medical Electronics Co., Ltd., Class A | 2,200 | 131,439 | ||||||
| Silergy Corp. | 2,000 | 361,363 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 65
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| Sunny Optical Technology Group Co., Ltd. | 8,000 | $ | 253,030 | |||||
| Tencent Holdings, Ltd. | 46,300 | 2,716,108 | ||||||
| The People’s Insurance Co. Group of China, Ltd., Class H | 421,000 | 127,427 | ||||||
| Weibo Corp. Sponsored ADR (*) | 1,549 | 47,988 | ||||||
| WuXi AppTec Co., Ltd., Class H | 9,200 | 159,289 | ||||||
| Wuxi Biologics Cayman, Inc. (*) | 31,500 | 374,421 | ||||||
| Yadea Group Holdings, Ltd. | 96,000 | 187,215 | ||||||
| Yuexiu Property Co., Ltd. | 168,400 | 148,378 | ||||||
| Yum China Holdings, Inc. | 5,648 | 281,496 | ||||||
| Zhejiang Orient Gene Biotech Co., Ltd., Class A | 4,889 | 177,036 | ||||||
| Zhongsheng Group Holdings, Ltd. | 34,000 | 265,342 | ||||||
| Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H | 112,600 | 70,955 | ||||||
| 23,124,943 | ||||||||
| Colombia | 0.2% | ||||||||
| Bancolombia SA Sponsored ADR | 3,538 | 111,765 | ||||||
| Greece | 0.5% | ||||||||
| Hellenic Telecommunications Organization SA | 14,167 | 262,205 | ||||||
| National Bank of Greece SA (*) | 21,329 | 71,185 | ||||||
| 333,390 | ||||||||
| Hong Kong | 0.2% | ||||||||
| Sino Biopharmaceutical, Ltd. | 229,000 | 160,464 | ||||||
| Hungary | 0.5% | ||||||||
| MOL Hungarian Oil & Gas PLC | 28,664 | 222,483 | ||||||
| Richter Gedeon Nyrt. | 4,789 | 128,806 | ||||||
| 351,289 | ||||||||
| India | 10.8% | ||||||||
| Axis Bank, Ltd. GDR (*) | 1,771 | 81,633 | ||||||
| Dr Reddy’s Laboratories, Ltd. ADR | 4,992 | 326,527 | ||||||
| GAIL India, Ltd. GDR | 20,519 | 224,130 | ||||||
| HDFC Bank, Ltd. ADR | 15,539 | 1,011,123 | ||||||
| ICICI Bank, Ltd. Sponsored ADR | 67,245 | 1,330,778 | ||||||
| Infosys, Ltd. Sponsored ADR | 61,411 | 1,554,312 | ||||||
The accompanying notes are an integral part of these financial statements.
66 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| Larsen & Toubro, Ltd. GDR | 18,672 | $ | 474,533 | |||||
| Reliance Industries, Ltd. Sponsored GDR (#) | 12,635 | 805,270 | ||||||
| State Bank of India GDR | 5,175 | 318,188 | ||||||
| Tata Motors, Ltd. Sponsored ADR (*) | 8,598 | 275,910 | ||||||
| Wipro, Ltd. ADR | 61,429 | 599,547 | ||||||
| WNS Holdings, Ltd. ADR (*) | 5,546 | 489,268 | ||||||
| 7,491,219 | ||||||||
| Indonesia | 1.5% | ||||||||
| Japfa Comfeed Indonesia Tbk PT | 876,100 | 105,710 | ||||||
| Kalbe Farma Tbk PT | 1,725,000 | 195,462 | ||||||
| PT Astra International Tbk | 1,084,300 | 433,179 | ||||||
| PT Telkom Indonesia (Persero) Tbk ADR | 10,252 | 297,205 | ||||||
| 1,031,556 | ||||||||
| Malaysia | 1.6% | ||||||||
| Frontken Corp. Bhd | 186,550 | 179,017 | ||||||
| Hong Leong Financial Group Bhd | 34,300 | 142,778 | ||||||
| Inari Amertron Berhad | 344,100 | 329,401 | ||||||
| Petronas Chemicals Group Bhd | 224,500 | 480,734 | ||||||
| 1,131,930 | ||||||||
| Mexico | 3.1% | ||||||||
| America Movil SAB de CV, Series L | 365,900 | 387,603 | ||||||
| Arca Continental SAB de CV | 48,300 | 307,886 | ||||||
| Coca-Cola Femsa SAB de CV Sponsored ADR | 5,578 | 305,618 | ||||||
| Gruma SAB de CV, Class B | 14,385 | 184,433 | ||||||
| Grupo Mexico SAB de CV, Series B | 66,600 | 290,431 | ||||||
| Kimberly-Clark de Mexico SAB de CV, Series A | 88,300 | 133,730 | ||||||
| Qualitas Controladora SAB de CV | 23,200 | 117,714 | ||||||
| Wal-Mart de Mexico SAB de CV | 119,400 | 443,708 | ||||||
| 2,171,123 | ||||||||
| Philippines | 0.5% | ||||||||
| BDO Unibank, Inc. | 50,970 | 120,639 | ||||||
| International Container Terminal Services, Inc. | 63,080 | 247,381 | ||||||
| 368,020 | ||||||||
| Poland | 0.7% | ||||||||
| Orange Polska SA (*) | 70,403 | 147,225 | ||||||
| Polski Koncern Naftowy ORLEN SA | 6,111 | 112,658 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 67
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| Polskie Gornictwo Naftowe i Gazownictwo SA | 139,083 | $ | 217,323 | |||||
| 477,206 | ||||||||
| Russia | 3.3% | ||||||||
| Gazprom PJSC Sponsored ADR | 58,819 | 541,633 | ||||||
| LUKOIL PJSC Sponsored ADR | 2,763 | 246,586 | ||||||
| MMC Norilsk Nickel PJSC ADR | 3,494 | 107,770 | ||||||
| PhosAgro PJSC GDR | 8,655 | 186,597 | ||||||
| Ros Agro PLC GDR | 12,024 | 182,963 | ||||||
| Rosneft Oil Co. PJSC GDR | 44,126 | 354,917 | ||||||
| Sberbank of Russia PJSC Sponsored ADR | 23,912 | 382,726 | ||||||
| Severstal PJSC GDR | 10,312 | 221,192 | ||||||
| Yandex NV Class A (*) | 1,544 | 93,412 | ||||||
| 2,317,796 | ||||||||
| Saudi Arabia | 3.2% | ||||||||
| Al Rajhi Bank | 21,131 | 795,730 | ||||||
| Arriyadh Development Co. | 26,820 | 181,463 | ||||||
| Bank Al-Jazira | 27,866 | 143,149 | ||||||
| Dr Sulaiman Al Habib Medical Services Group Co. | 1,801 | 77,436 | ||||||
| Leejam Sports Co. JSC | 4,494 | 130,118 | ||||||
| National Gas & Industrialization Co. | 10,301 | 148,677 | ||||||
| SABIC Agri-Nutrients Co. | 5,999 | 281,956 | ||||||
| Saudi Basic Industries Corp. | 16,289 | 502,812 | ||||||
| 2,261,341 | ||||||||
| South Africa | 2.6% | ||||||||
| Absa Group, Ltd. | 14,170 | 135,620 | ||||||
| Anglo American Platinum, Ltd. | 1,045 | 119,016 | ||||||
| Impala Platinum Holdings, Ltd. | 9,583 | 135,349 | ||||||
| MTN Group, Ltd. (*) | 18,084 | 193,304 | ||||||
| MultiChoice Group, Ltd. | 25,747 | 197,063 | ||||||
| Naspers, Ltd., N Shares | 2,076 | 322,136 | ||||||
| Northam Platinum Holdings, Ltd. (*) | 8,161 | 107,249 | ||||||
| Sasol, Ltd. (*) | 9,955 | 162,853 | ||||||
| Shoprite Holdings, Ltd. | 10,018 | 131,244 | ||||||
| Sibanye Stillwater, Ltd. | 29,983 | 92,653 | ||||||
| Vodacom Group, Ltd. | 21,817 | 184,003 | ||||||
| 1,780,490 | ||||||||
The accompanying notes are an integral part of these financial statements.
68 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| South Korea | 13.6% | ||||||||
| AfreecaTV Co., Ltd. | 1,554 | $ | 264,403 | |||||
| BNK Financial Group, Inc. | 19,064 | 134,335 | ||||||
| DGB Financial Group, Inc. | 23,412 | 184,684 | ||||||
| Hana Financial Group, Inc. | 16,980 | 597,954 | ||||||
| Hankook Tire & Technology Co., Ltd. | 4,691 | 155,878 | ||||||
| HMM Co., Ltd. (*) | 3,645 | 82,420 | ||||||
| Kakao Corp. (*) | 2,503 | 236,076 | ||||||
| KB Financial Group, Inc. | 10,216 | 470,911 | ||||||
| Kia Corp. | 8,596 | 590,144 | ||||||
| Korea Electric Power Corp. (*) | 7,958 | 147,398 | ||||||
| Korea Electric Terminal Co., Ltd. | 1,767 | 113,146 | ||||||
| Korean Reinsurance Co. | 38,187 | 297,080 | ||||||
| KT Corp. (*) | 22,909 | 588,922 | ||||||
| KT&G Corp. (*) | 1,528 | 101,612 | ||||||
| Kumho Petrochemical Co., Ltd. | 694 | 96,605 | ||||||
| LG Chem, Ltd. | 288 | 148,593 | ||||||
| LG Electronics, Inc. (*) | 1,423 | 164,556 | ||||||
| LG Innotek Co., Ltd. | 662 | 202,497 | ||||||
| NAVER Corp. | 453 | 143,813 | ||||||
| Osstem Implant Co., Ltd. (*) | 1,628 | 194,805 | ||||||
| POSCO | 1,072 | 246,087 | ||||||
| Samsung Electro-Mechanics Co., Ltd. | 2,079 | 345,073 | ||||||
| Samsung Electronics Co., Ltd. GDR | 2,066 | 3,391,244 | ||||||
| Samsung Securities Co., Ltd. | 4,548 | 171,413 | ||||||
| SK Hynix, Inc. (*) | 3,767 | 412,154 | ||||||
| 9,481,803 | ||||||||
| Taiwan | 16.0% | ||||||||
| Cathay Financial Holding Co., Ltd. | 343,000 | 772,898 | ||||||
| Chailease Holding Co., Ltd. | 16,000 | 151,908 | ||||||
| China Airlines, Ltd. (*) | 173,000 | 171,514 | ||||||
| Delta Electronics, Inc. | 76,000 | 755,502 | ||||||
| Evergreen Marine Corp. Taiwan, Ltd. | 46,000 | 235,704 | ||||||
| Formosa Plastics Corp. | 104,000 | 390,159 | ||||||
| Fubon Financial Holding Co., Ltd. | 39,000 | 107,532 | ||||||
| Global Unichip Corp. | 8,000 | 168,723 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 69
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| International Games System Co., Ltd. | 4,000 | $ | 114,619 | |||||
| MediaTek, Inc. | 13,000 | 555,810 | ||||||
| Nan Ya Plastics Corp. | 58,000 | 178,660 | ||||||
| Nan Ya Printed Circuit Board Corp. | 16,000 | 328,173 | ||||||
| Novatek Microelectronics Corp. | 7,000 | 135,797 | ||||||
| Pegavision Corp. | 7,000 | 107,740 | ||||||
| Realtek Semiconductor Corp. | 8,000 | 167,747 | ||||||
| Silicon Motion Technology Corp. ADR | 1,237 | 117,552 | ||||||
| SinoPac Financial Holdings Co., Ltd. | 370,000 | 215,736 | ||||||
| Taiwan Semiconductor Manufacturing Co., Ltd. | 220,000 | 4,871,406 | ||||||
| Unimicron Technology Corp. | 37,000 | 307,353 | ||||||
| United Microelectronics Corp. | 125,000 | 292,040 | ||||||
| Vanguard International Semiconductor Corp. | 67,000 | 382,703 | ||||||
| Voltronic Power Technology Corp. | 2,000 | 111,853 | ||||||
| Wan Hai Lines, Ltd. | 20,400 | 146,503 | ||||||
| Yuanta Financial Holding Co., Ltd. | 353,000 | 322,352 | ||||||
| 11,109,984 | ||||||||
| Thailand | 2.9% | ||||||||
| Chularat Hospital Public Co., Ltd. NVDR | 1,959,100 | 214,452 | ||||||
| Com7 Public Co., Ltd. NVDR | 144,000 | 352,196 | ||||||
| Hana Microelectronics Public Co., Ltd. NVDR | 77,600 | 204,726 | ||||||
| Kasikornbank Public Co., Ltd. NVDR | 58,500 | 248,366 | ||||||
| KCE Electronics Public Co., Ltd. NVDR | 73,500 | 193,437 | ||||||
| Krung Thai Bank Public Co., Ltd. NVDR | 344,200 | 135,084 | ||||||
| Mega Lifesciences Public Co., Ltd. (‡) | 162,848 | 246,186 | ||||||
| PTT Global Chemical Public Co., Ltd. (‡) | 68,500 | 120,472 | ||||||
| Sri Trang Agro-Industry Public Co., Ltd. (‡) | 139,000 | 128,993 | ||||||
| The Siam Commercial Bank Public Co., Ltd. NVDR | 43,000 | 161,938 | ||||||
| 2,005,850 | ||||||||
| Turkey | 0.8% | ||||||||
| Coca-Cola Icecek AS | 11,026 | 72,278 | ||||||
| Ford Otomotiv Sanayi AS | 6,647 | 119,640 | ||||||
| Kardemir Karabuk Demir Celik Sanayi ve Ticaret Class D (*) | 163,311 | 113,771 | ||||||
| Turkcell Iletisim Hizmetleri AS | 95,937 | 130,753 | ||||||
| Turkiye Garanti Bankasi AS | 111,754 | 95,215 | ||||||
| 531,657 | ||||||||
The accompanying notes are an integral part of these financial statements.
70 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (concluded) | ||||||||
| United States | 0.2% | ||||||||
| JBS SA | 20,100 | $ | 136,960 | |||||
| Total Common Stocks (Cost $67,950,419) | 67,633,078 | |||||||
| Preferred Stocks | 1.1% | ||||||||
| Brazil | 1.1% | ||||||||
| Cia Energetica de Minas Gerais | 88,400 | 213,971 | ||||||
| Petroleo Brasileiro SA | 102,939 | 522,363 | ||||||
| Total Preferred Stocks (Cost $719,638) | 736,334 | |||||||
| Short-Term Investments | 1.1% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $766,155) | 766,155 | 766,155 | ||||||
| Total Investments | 99.5% (Cost $69,436,212) | $ | 69,135,567 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.5% | 381,734 | |||||||
| Net Assets | 100.0% | $ | 69,517,301 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 71
The accompanying notes are an integral part of these financial statements.
72 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Portfolio (continued) | ||||||||
| Hong Kong | 1.1% | ||||||||
| ASM Pacific Technology, Ltd. | 3,776,800 | $ | 40,714,304 | |||||
| Hungary | 1.6% | ||||||||
| OTP Bank Nyrt. (*) | 1,144,553 | 58,481,047 | ||||||
| India | 6.3% | ||||||||
| Axis Bank, Ltd. (*) | 3,308,964 | 30,027,522 | ||||||
| Bajaj Auto, Ltd. | 519,700 | 22,718,425 | ||||||
| Bharat Petroleum Corp., Ltd. | 4,992,079 | 25,889,184 | ||||||
| Coal India, Ltd. | 11,080,601 | 21,748,522 | ||||||
| Hero MotoCorp, Ltd. | 683,133 | 22,580,179 | ||||||
| Indus Towers, Ltd. | 12,343,004 | 41,052,482 | ||||||
| Petronet LNG, Ltd. | 8,713,037 | 25,353,917 | ||||||
| UPL, Ltd. | 4,157,126 | 41,592,890 | ||||||
| 230,963,121 | ||||||||
| Indonesia | 5.1% | ||||||||
| PT Astra International Tbk | 90,393,900 | 36,112,464 | ||||||
| PT Bank Mandiri (Persero) Tbk | 136,612,742 | 67,318,162 | ||||||
| PT Telkom Indonesia (Persero) Tbk ADR | 2,915,777 | 84,528,375 | ||||||
| 187,959,001 | ||||||||
| Mexico | 4.9% | ||||||||
| America Movil SAB de CV, Class L Sponsored ADR | 2,815,802 | 59,441,580 | ||||||
| Grupo Financiero Banorte SAB de CV, Class O | 7,726,437 | 50,195,143 | ||||||
| Grupo Mexico SAB de CV, Series B | 9,854,542 | 42,973,899 | ||||||
| Kimberly-Clark de Mexico SAB de CV, Series A | 17,016,695 | 25,771,664 | ||||||
| 178,382,286 | ||||||||
| Portugal | 1.7% | ||||||||
| Galp Energia SGPS SA | 6,417,788 | 62,232,850 | ||||||
| Russia | 6.7% | ||||||||
| Gazprom PJSC Sponsored ADR | 4,608,733 | 42,439,347 | ||||||
| LUKOIL PJSC Sponsored ADR | 668,146 | 59,629,118 | ||||||
| Mobile TeleSystems PJSC Sponsored ADR | 6,304,611 | 50,121,658 | ||||||
| Sberbank of Russia PJSC (‡) | 13,797,099 | 53,855,334 | ||||||
| X5 Retail Group NV GDR | 1,509,976 | 39,878,573 | ||||||
| 245,924,030 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 73
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Portfolio (continued) | ||||||||
| South Africa | 6.5% | ||||||||
| Anglo American PLC | 889,791 | $ | 36,421,708 | |||||
| Life Healthcare Group Holdings, Ltd. | 22,160,589 | 33,422,406 | ||||||
| Nedbank Group, Ltd. | 4,954,334 | 54,425,132 | ||||||
| Sanlam, Ltd. | 6,491,122 | 24,178,820 | ||||||
| Standard Bank Group, Ltd. | 3,317,308 | 29,142,497 | ||||||
| The Bidvest Group, Ltd. | 3,033,396 | 36,069,836 | ||||||
| Vodacom Group, Ltd. | 2,695,093 | 22,730,244 | ||||||
| 236,390,643 | ||||||||
| South Korea | 14.0% | ||||||||
| Coway Co., Ltd. | 731,337 | 45,478,791 | ||||||
| Hyundai Mobis Co., Ltd. | 206,324 | 43,823,389 | ||||||
| KB Financial Group, Inc. | 1,374,835 | 63,373,556 | ||||||
| KT&G Corp. | 592,588 | 39,407,077 | ||||||
| Samsung Electronics Co., Ltd. | 2,048,492 | 134,483,797 | ||||||
| Shinhan Financial Group Co., Ltd. | 1,688,031 | 52,050,296 | ||||||
| SK Hynix, Inc. | 1,209,066 | 132,286,028 | ||||||
| 510,902,934 | ||||||||
| Taiwan | 10.4% | ||||||||
| ASE Technology Holding Co., Ltd. | 16,530,000 | 63,369,211 | ||||||
| Globalwafers Co., Ltd. | 866,000 | 27,691,293 | ||||||
| Hon Hai Precision Industry Co., Ltd. | 15,032,425 | 56,356,158 | ||||||
| Novatek Microelectronics Corp. | 3,834,000 | 74,378,130 | ||||||
| Quanta Computer, Inc. | 19,484,000 | 66,580,842 | ||||||
| Taiwan Semiconductor Manufacturing Co., Ltd. | 1,601,913 | 35,470,769 | ||||||
| Wiwynn Corp. | 1,367,000 | 54,929,556 | ||||||
| 378,775,959 | ||||||||
| Thailand | 1.9% | ||||||||
| Kasikornbank Public Co., Ltd. | 8,448,754 | 35,791,002 | ||||||
| The Siam Cement Public Co., Ltd. (‡) | 2,815,700 | 32,535,854 | ||||||
| 68,326,856 | ||||||||
| United Kingdom | 1.6% | ||||||||
| Unilever PLC | 1,095,474 | 58,663,249 | ||||||
| Total Common Stocks (Cost $2,882,505,385) | 3,370,220,643 | |||||||
The accompanying notes are an integral part of these financial statements.
74 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Portfolio (concluded) | ||||||||
| Exchange-Traded Funds | 5.0% | ||||||||
| iShares Core MSCI Emerging Markets ETF | 1,508,616 | $ | 90,305,754 | |||||
| Vanguard FTSE Emerging Markets ETF | 1,843,009 | 91,155,225 | ||||||
| Total
Exchange-Traded Funds (Cost $147,595,039) | 181,460,979 | |||||||
| Short-Term Investments | 2.4% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $85,902,251) | 85,902,251 | 85,902,251 | ||||||
| Total Investments | 99.6% (Cost $3,116,002,675) | $ | 3,637,583,873 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.4% | 15,334,107 | |||||||
| Net Assets | 100.0% | $ | 3,652,917,980 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 75
The accompanying notes are an integral part of these financial statements.
76 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Strategic Equity Portfolio (continued) | ||||||||
| France | 0.8% | ||||||||
| Pernod Ricard SA Sponsored ADR | 10,359 | $ | 502,204 | |||||
| Greece | 0.6% | ||||||||
| OPAP SA | 25,777 | 365,731 | ||||||
| Hong Kong | 1.6% | ||||||||
| Techtronic Industries Co., Ltd. | 47,782 | 951,133 | ||||||
| India | 12.4% | ||||||||
| HDFC Bank, Ltd. | 97,399 | 1,930,806 | ||||||
| Hero MotoCorp, Ltd. | 19,448 | 642,831 | ||||||
| ITC, Ltd. | 226,795 | 664,900 | ||||||
| Reliance Industries, Ltd. | 48,499 | 1,544,154 | ||||||
| SBI Cards & Payment Services, Ltd. (*) | 37,090 | 462,891 | ||||||
| Tata Consultancy Services, Ltd. | 31,834 | 1,601,164 | ||||||
| UPL, Ltd. | 62,463 | 624,955 | ||||||
| 7,471,701 | ||||||||
| Indonesia | 3.2% | ||||||||
| PT Astra International Tbk | 1,016,500 | 406,093 | ||||||
| PT Bank Central Asia Tbk | 1,780,300 | 902,190 | ||||||
| PT Telkom Indonesia (Persero) Tbk ADR | 21,008 | 609,022 | ||||||
| 1,917,305 | ||||||||
| Macau | 0.6% | ||||||||
| Sands China, Ltd. (*) | 142,000 | 330,781 | ||||||
| Mexico | 4.2% | ||||||||
| America Movil SAB de CV, Class L Sponsored ADR | 36,016 | 760,298 | ||||||
| Grupo Financiero Banorte SAB de CV, Class O | 91,777 | 596,233 | ||||||
| Grupo Mexico SAB de CV, Series B | 167,699 | 731,305 | ||||||
| Kimberly-Clark de Mexico SAB de CV, Series A | 286,674 | 434,166 | ||||||
| 2,522,002 | ||||||||
| Russia | 5.7% | ||||||||
| Fix Price Group, Ltd. GDR | 70,222 | 529,431 | ||||||
| LUKOIL PJSC Sponsored ADR | 13,510 | 1,205,709 | ||||||
| Mobile TeleSystems PJSC Sponsored ADR | 59,164 | 470,354 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 77
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Strategic Equity Portfolio (continued) | ||||||||
| Sberbank of Russia PJSC (‡) | 213,889 | $ | 834,890 | |||||
| Yandex NV Class A (*) | 6,101 | 369,110 | ||||||
| 3,409,494 | ||||||||
| South Africa | 4.6% | ||||||||
| Anglo American PLC | 31,670 | 1,296,344 | ||||||
| Capitec Bank Holdings, Ltd. | 4,389 | 561,781 | ||||||
| The Foschini Group, Ltd. (*) | 53,685 | 417,494 | ||||||
| Vodacom Group, Ltd. | 55,623 | 469,121 | ||||||
| 2,744,740 | ||||||||
| South Korea | 12.8% | ||||||||
| Coway Co., Ltd. | 11,476 | 713,645 | ||||||
| Hyundai Mobis Co., Ltd. | 3,131 | 665,027 | ||||||
| NAVER Corp. | 2,336 | 741,606 | ||||||
| NCSoft Corp. | 796 | 429,793 | ||||||
| Samsung Electronics Co., Ltd. | 34,493 | 2,264,470 | ||||||
| Shinhan Financial Group Co., Ltd. | 38,276 | 1,180,237 | ||||||
| SK Hynix, Inc. | 15,479 | 1,693,585 | ||||||
| 7,688,363 | ||||||||
| Taiwan | 13.8% | ||||||||
| CTBC Financial Holding Co., Ltd. | 1,365,000 | 1,278,457 | ||||||
| Globalwafers Co., Ltd. | 21,000 | 671,498 | ||||||
| Hon Hai Precision Industry Co., Ltd. | 324,136 | 1,215,177 | ||||||
| Novatek Microelectronics Corp. | 57,000 | 1,105,778 | ||||||
| Quanta Computer, Inc. | 243,000 | 830,381 | ||||||
| Taiwan Semiconductor Manufacturing Co., Ltd. | 144,387 | 3,197,126 | ||||||
| 8,298,417 | ||||||||
| Thailand | 1.0% | ||||||||
| CP ALL Public Co., Ltd. | 325,100 | 574,192 | ||||||
| Siam Makro Public Co., Ltd. (‡) | 21,473 | 26,998 | ||||||
| 601,190 | ||||||||
| United Kingdom | 1.5% | ||||||||
| Unilever PLC | 17,164 | 919,142 | ||||||
| Total Common Stocks (Cost $56,582,831) | 58,805,861 | |||||||
The accompanying notes are an integral part of these financial statements.
78 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Strategic Equity Portfolio (concluded) | ||||||||
| Preferred Stocks | 0.6% | ||||||||
| Brazil | 0.6% | ||||||||
| Banco Bradesco SA (Cost $472,103) | 108,100 | $ | 372,894 | |||||
| Short-Term Investments | 2.1% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $1,290,001) | 1,290,001 | 1,290,001 | ||||||
| Total Investments | 100.4% (Cost $58,344,935) | $ | 60,468,756 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.4)% | (250,956 | ) | ||||||
| Net Assets | 100.0% | $ | 60, 217, 800 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 79
The accompanying notes are an integral part of these financial statements.
80 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Equity Franchise Portfolio (concluded) | ||||||||
| McKesson Corp. | 17,687 | $ | 4,396,458 | |||||
| MEDNAX, Inc. (*) | 92,255 | 2,510,259 | ||||||
| Medtronic PLC | 40,877 | 4,228,726 | ||||||
| Nielsen Holdings PLC | 314,838 | 6,457,327 | ||||||
| Omnicom Group, Inc. | 89,160 | 6,532,753 | ||||||
| Stericycle, Inc. (*) | 51,910 | 3,095,912 | ||||||
| Tapestry, Inc. | 97,757 | 3,968,934 | ||||||
| Visa, Inc., Class A | 20,161 | 4,369,090 | ||||||
| 65,890,031 | ||||||||
| Total
Common Stocks (Cost $83,368,057) | 98,648,187 | |||||||
| Short-Term Investments | 6.3% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $6,669,043) | 6,669,043 | 6,669,043 | ||||||
| Total Investments | 99.8%
(Cost $90,037,100) | $ | 105,317,230 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.2% | 204,341 | |||||||
| Net Assets | 100.0% | $ | 105,521,571 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 81
The accompanying notes are an integral part of these financial statements.
82 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Equity Select Portfolio (continued) | ||||||||
| Japan | 3.4% | ||||||||
| BayCurrent Consulting, Inc. | 4,000 | $ | 1,541,086 | |||||
| Nintendo Co., Ltd. | 2,400 | 1,119,451 | ||||||
| Shimano, Inc. | 4,400 | 1,169,342 | ||||||
| 3,829,879 | ||||||||
| Netherlands | 2.6% | ||||||||
| Wolters Kluwer NV | 24,423 | 2,870,570 | ||||||
| South Korea | 0.7% | ||||||||
| LG Household & Health Care, Ltd. (*) | 862 | 795,234 | ||||||
| Spain | 0.8% | ||||||||
| Industria de Diseno Textil SA | 28,122 | 911,389 | ||||||
| Sweden | 2.3% | ||||||||
| Assa Abloy AB, Class B | 26,428 | 802,828 | ||||||
| Hexagon AB, B Shares | 111,847 | 1,760,869 | ||||||
| 2,563,697 | ||||||||
| Switzerland | 4.3% | ||||||||
| ABB, Ltd. | 43,434 | 1,654,891 | ||||||
| Partners Group Holding AG | 1,051 | 1,732,592 | ||||||
| The Swatch Group AG | 4,781 | 1,456,510 | ||||||
| 4,843,993 | ||||||||
| Taiwan | 2.1% | ||||||||
| Taiwan Semiconductor Manufacturing Co., Ltd. | ||||||||
| Sponsored ADR | 19,201 | 2,310,072 | ||||||
| United Kingdom | 7.3% | ||||||||
| Coca-Cola Europacific Partners PLC | 20,720 | 1,158,870 | ||||||
| Diageo PLC | 42,941 | 2,340,839 | ||||||
| Prudential PLC | 39,418 | 679,726 | ||||||
| RELX PLC | 62,959 | 2,036,975 | ||||||
| Unilever PLC | 36,108 | 1,934,465 | ||||||
| 8,150,875 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 83
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Equity Select Portfolio (continued) | ||||||||
| United States | 56.8% | ||||||||
| Accenture PLC, Class A | 8,237 | $ | 3,414,648 | |||||
| Alphabet, Inc., Class A (*) | 1,550 | 4,490,412 | ||||||
| Amphenol Corp., Class A | 14,848 | 1,298,606 | ||||||
| Aon PLC, Class A | 10,430 | 3,134,841 | ||||||
| Avery Dennison Corp. | 4,560 | 987,559 | ||||||
| Boston Scientific Corp. (*) | 28,698 | 1,219,091 | ||||||
| BRP, Inc. | 10,777 | 943,983 | ||||||
| Deere & Co. | 2,839 | 973,465 | ||||||
| Dollar General Corp. | 7,963 | 1,877,914 | ||||||
| Honeywell International, Inc. | 4,132 | 861,563 | ||||||
| Intercontinental Exchange, Inc. | 16,719 | 2,286,658 | ||||||
| IQVIA Holdings, Inc. (*) | 13,179 | 3,718,323 | ||||||
| Johnson & Johnson | 12,617 | 2,158,390 | ||||||
| Lowe’s Cos., Inc. | 8,654 | 2,236,886 | ||||||
| McDonald’s Corp. | 6,655 | 1,784,006 | ||||||
| Microsoft Corp. | 13,340 | 4,486,509 | ||||||
| Motorola Solutions, Inc. | 9,067 | 2,463,504 | ||||||
| NIKE, Inc., Class B | 10,209 | 1,701,534 | ||||||
| PTC, Inc. (*) | 11,320 | 1,371,418 | ||||||
| Rockwell Automation, Inc. | 4,461 | 1,556,220 | ||||||
| S&P Global, Inc. | 4,405 | 2,078,852 | ||||||
| Texas Instruments, Inc. | 9,419 | 1,775,199 | ||||||
| The Charles Schwab Corp. | 22,169 | 1,864,413 | ||||||
| The Coca-Cola Co. | 37,000 | 2,190,770 | ||||||
| The Procter & Gamble Co. | 10,898 | 1,782,695 | ||||||
| Thermo Fisher Scientific, Inc. | 5,759 | 3,842,635 | ||||||
| TopBuild Corp. (*) | 3,293 | 908,572 | ||||||
| Visa, Inc., Class A | 8,826 | 1,912,682 | ||||||
| Warner Music Group Corp., Class A | 17,294 | 746,755 | ||||||
| Zoetis, Inc. | 13,118 | 3,201,185 | ||||||
| 63,269,288 | ||||||||
| Total
Common Stocks (Cost $68,788,494) | 110,122,036 | |||||||
The accompanying notes are an integral part of these financial statements.
84 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Equity Select Portfolio (concluded) | ||||||||
| Short-Term Investments | 0.9% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $960,483) | 960,483 | $ | 960,483 | |||||
| Total Investments | 99.6%
(Cost $69,748,977) | $ | 111,082,519 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.4% | 403,467 | |||||||
| Net Assets | 100.0% | $ | 111,485,986 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 85
The accompanying notes are an integral part of these financial statements.
86 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Listed Infrastructure Portfolio (continued) | ||||||||
| United Kingdom | 18.3% | ||||||||
| National Grid PLC | 44,435,550 | $ | 641,138,096 | |||||
| Pennon Group PLC | 3,748,135 | 59,347,419 | ||||||
| Severn Trent PLC | 8,570,194 | 342,265,985 | ||||||
| United Utilities Group PLC | 23,503,583 | 346,925,659 | ||||||
| 1,389,677,159 | ||||||||
| United States | 19.6% | ||||||||
| Ameren Corp. | 1,840,900 | 163,858,509 | ||||||
| Consolidated Edison, Inc. | 4,336,455 | 369,986,341 | ||||||
| CSX Corp. | 8,034,881 | 302,111,526 | ||||||
| Norfolk Southern Corp. | 619,019 | 184,288,146 | ||||||
| NorthWestern Corp. | 1,650,672 | 94,352,412 | ||||||
| Pinnacle West Capital Corp. | 5,350,404 | 377,685,018 | ||||||
| 1,492,281,952 | ||||||||
| Total Common Stocks (Cost $6,044,977,300) | 6,996,428,287 | |||||||
| Short-Term Investments | 8.4% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $635,937,413) | 635,937,413 | 635,937,413 | ||||||
| Total Investments | 100.3% (Cost $6,680,914,713) (») | $ | 7,632,365,700 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.3)% | (23,477,972 | ) | ||||||
| Net Assets | 100.0% | $ | 7,608,887,728 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 87
Lazard Global Listed Infrastructure Portfolio (concluded)
Forward Currency Contracts open at December 31, 2021:
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||
| AUD | 253,196,990 | USD | 183,113,329 | SCB | 03/24/22 | $ | 1,137,925 | $ | — | |||||||||||
| USD | 8,729,352 | AUD | 12,261,497 | BNP | 03/24/22 | — | 193,330 | |||||||||||||
| USD | 119,678,388 | AUD | 168,234,120 | CIT | 03/24/22 | — | 2,745,451 | |||||||||||||
| USD | 73,708,681 | AUD | 103,583,804 | HSB | 03/24/22 | — | 1,669,173 | |||||||||||||
| USD | 141,783,266 | AUD | 199,296,149 | MSC | 03/24/22 | — | 3,244,388 | |||||||||||||
| USD | 145,613,963 | AUD | 204,626,078 | SCB | 03/24/22 | — | 3,292,276 | |||||||||||||
| USD | 130,655,177 | AUD | 183,700,548 | SSB | 03/24/22 | — | 3,023,569 | |||||||||||||
| USD | 6,185,159 | CAD | 7,936,858 | BNP | 03/24/22 | — | 88,141 | |||||||||||||
| USD | 1,741,250 | CAD | 2,234,353 | HSB | 03/24/22 | — | 24,785 | |||||||||||||
| USD | 12,911,147 | CAD | 16,568,294 | MSC | 03/24/22 | — | 184,449 | |||||||||||||
| USD | 19,706,199 | CAD | 25,288,670 | SCB | 03/24/22 | — | 281,990 | |||||||||||||
| USD | 8,430,989 | CHF | 7,766,416 | BNP | 03/24/22 | — | 110,143 | |||||||||||||
| USD | 10,138,554 | CHF | 9,316,226 | BNP | 03/24/22 | — | 106,984 | |||||||||||||
| USD | 33,833,052 | CHF | 31,170,222 | HSB | 03/24/22 | — | 446,462 | |||||||||||||
| USD | 36,637,149 | CHF | 33,744,646 | SCB | 03/24/22 | — | 473,594 | |||||||||||||
| USD | 45,156,827 | CHF | 41,595,760 | SSB | 03/24/22 | — | 588,193 | |||||||||||||
| USD | 351,036,297 | EUR | 311,045,214 | BNP | 03/24/22 | — | 3,676,261 | |||||||||||||
| USD | 243,112,145 | EUR | 215,416,097 | CAN | 03/24/22 | — | 2,546,015 | |||||||||||||
| USD | 404,063,868 | EUR | 357,965,120 | CIT | 03/24/22 | — | 4,155,637 | |||||||||||||
| USD | 392,636,311 | EUR | 347,834,528 | HSB | 03/24/22 | — | 4,030,378 | |||||||||||||
| USD | 387,296,227 | EUR | 343,204,717 | MEL | 03/24/22 | — | 4,090,676 | |||||||||||||
| USD | 550,788,871 | EUR | 487,948,432 | RBC | 03/24/22 | — | 5,662,181 | |||||||||||||
| USD | 627,350,776 | EUR | 555,925,471 | SSB | 03/24/22 | — | 6,620,547 | |||||||||||||
| USD | 169,902,237 | GBP | 128,608,104 | CAN | 03/24/22 | — | 4,115,022 | |||||||||||||
| USD | 226,281,281 | GBP | 171,244,886 | HSB | 03/24/22 | — | 5,427,025 | |||||||||||||
| USD | 233,567,863 | GBP | 176,771,258 | MSC | 03/24/22 | — | 5,618,074 | |||||||||||||
| USD | 361,708,073 | GBP | 273,732,397 | RBC | 03/24/22 | — | 8,674,197 | |||||||||||||
| USD | 382,041,805 | GBP | 289,115,687 | SSB | 03/24/22 | — | 9,155,312 | |||||||||||||
| USD | 89,660,856 | HKD | 699,287,435 | BNP | 03/24/22 | — | 32,212 | |||||||||||||
| USD | 87,252,741 | HKD | 680,580,106 | HSB | 03/24/22 | — | 40,859 | |||||||||||||
| USD | 38,243,102 | HKD | 298,311,611 | MSC | 03/24/22 | — | 19,395 | |||||||||||||
| USD | 9,684,613 | HKD | 75,539,980 | SCB | 03/24/22 | — | 4,411 | |||||||||||||
| USD | 80,836,405 | HKD | 630,588,624 | SSB | 03/24/22 | — | 45,112 | |||||||||||||
| Total gross unrealized appreciation/depreciation on Forward Currency Contracts | $ | 1,137,925 | $ | 80,386,242 | ||||||||||||||||
The accompanying notes are an integral part of these financial statements.
88 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 89
| Description | Shares | Fair Value | ||||||
| Lazard Global Strategic Equity Portfolio (continued) | ||||||||
| Japan | 3.8% | ||||||||
| BayCurrent Consulting, Inc. | 400 | $ | 154,109 | |||||
| Digital Garage, Inc. | 3,200 | 136,192 | ||||||
| TechnoPro Holdings, Inc. | 6,300 | 191,157 | ||||||
| Z Holdings Corp. | 33,800 | 196,140 | ||||||
| 677,598 | ||||||||
| Netherlands | 4.2% | ||||||||
| Koninklijke DSM NV | 1,321 | 296,602 | ||||||
| Universal Music Group NV | 15,917 | 448,773 | ||||||
| 745,375 | ||||||||
| Portugal | 0.9% | ||||||||
| Energias de Portugal SA | 29,604 | 162,388 | ||||||
| South Korea | 3.0% | ||||||||
| Osstem Implant Co., Ltd. (*) | 2,749 | 328,942 | ||||||
| SK Hynix, Inc. | 1,760 | 192,565 | ||||||
| 521,507 | ||||||||
| Spain | 1.2% | ||||||||
| Siemens Gamesa Renewable Energy SA (*) | 8,939 | 212,011 | ||||||
| Switzerland | 2.4% | ||||||||
| ABB, Ltd. | 9,319 | 355,066 | ||||||
| Idorsia, Ltd. (*) | 3,155 | 64,274 | ||||||
| 419,340 | ||||||||
| Taiwan | 2.1% | ||||||||
| Taiwan Semiconductor Manufacturing Co., Ltd. | 17,000 | 376,427 | ||||||
| United Kingdom | 7.0% | ||||||||
| Informa PLC (*) | 23,465 | 163,382 | ||||||
| ITV PLC (*) | 138,875 | 207,129 | ||||||
| Linde PLC (*) | 862 | 300,280 | ||||||
| RELX PLC | 15,595 | 504,560 | ||||||
| THG PLC (*) | 19,398 | 60,200 | ||||||
| 1,235,551 | ||||||||
The accompanying notes are an integral part of these financial statements.
90 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Strategic Equity Portfolio (continued) | ||||||||
| United States | 55.7% | ||||||||
| Accenture PLC, Class A | 846 | $ | 350,709 | |||||
| Adaptive Biotechnologies Corp. (*) | 1,952 | 54,773 | ||||||
| Adobe, Inc. (*) | 678 | 384,467 | ||||||
| Alphabet, Inc., Class A (*) | 297 | 860,421 | ||||||
| Amphenol Corp., Class A | 3,504 | 306,460 | ||||||
| Analog Devices, Inc. | 1,963 | 345,036 | ||||||
| Aon PLC, Class A | 1,414 | 424,992 | ||||||
| Applied Materials, Inc. | 2,538 | 399,380 | ||||||
| Bank of America Corp. | 6,499 | 289,140 | ||||||
| Boston Scientific Corp. (*) | 5,975 | 253,818 | ||||||
| CyberArk Software, Ltd. (*) | 932 | 161,497 | ||||||
| Danaher Corp. | 1,270 | 417,843 | ||||||
| Dollar General Corp. | 1,334 | 314,597 | ||||||
| Fidelity National Information Services, Inc. | 1,620 | 176,823 | ||||||
| Intercontinental Exchange, Inc. | 3,658 | 500,305 | ||||||
| Intuit, Inc. | 608 | 391,078 | ||||||
| IQVIA Holdings, Inc. (*) | 2,133 | 601,805 | ||||||
| Microsoft Corp. | 2,882 | 969,274 | ||||||
| S&P Global, Inc. | 1,073 | 506,381 | ||||||
| Synopsys, Inc. (*) | 1,135 | 418,247 | ||||||
| The Coca-Cola Co. | 4,202 | 248,800 | ||||||
| Thermo Fisher Scientific, Inc. | 691 | 461,063 | ||||||
| UnitedHealth Group, Inc. | 910 | 456,947 | ||||||
| Visa, Inc., Class A | 1,449 | 314,013 | ||||||
| Zoetis, Inc. | 1,038 | 253,303 | ||||||
| 9,861,172 | ||||||||
| Total Common Stocks (Cost $15,323,591) | 17,705,184 | |||||||
| Short-Term Investments | 0.4% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $72,523) | 72,523 | 72,523 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 91
| Description | Shares | Fair Value | ||||||
| Lazard Global Strategic Equity Portfolio (concluded) | ||||||||
| Total Investments | 100.4% (Cost $15,396,114) | $ | 17,777,707 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.4)% | (65,794 | ) | ||||||
| Net Assets | 100.0% | $ | 17,711,913 | ||||||
The accompanying notes are an integral part of these financial statements.
92 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 93
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| Denmark | 4.2% | ||||||||
| AP Moller-Maersk A/S, Class B | 7 | $ | 25,123 | |||||
| Demant A/S (*) | 139 | 7,051 | ||||||
| Novo Nordisk A/S, Class B | 785 | 87,759 | ||||||
| Pandora A/S | 52 | 6,472 | ||||||
| 126,405 | ||||||||
| Finland | 0.9% | ||||||||
| Nokia oyj. Sponsored ADR (*) | 3,465 | 21,552 | ||||||
| Nordea Bank Abp | 208 | 2,533 | ||||||
| QT Group Oyj (*) | 19 | 2,855 | ||||||
| 26,940 | ||||||||
| France | 11.1% | ||||||||
| Airbus SE (*) | 172 | 21,967 | ||||||
| Arkema SA | 93 | 13,117 | ||||||
| BioMerieux | 46 | 6,539 | ||||||
| BNP Paribas SA | 232 | 16,030 | ||||||
| Cie de Saint-Gobain | 892 | 62,744 | ||||||
| Cie Generale des Etablissements Michelin SCA | 215 | 35,242 | ||||||
| Credit Agricole SA | 332 | 4,742 | ||||||
| Eiffage SA | 27 | 2,785 | ||||||
| Electricite de France SA | 2,529 | 29,720 | ||||||
| Kering SA | 54 | 43,329 | ||||||
| L’Oreal SA | 66 | 31,287 | ||||||
| La Francaise des Jeux SAEM | 381 | 16,880 | ||||||
| Nexity SA | 53 | 2,492 | ||||||
| Sanofi | 193 | 19,391 | ||||||
| Sartorius Stedim Biotech | 7 | 3,834 | ||||||
| Societe Generale SA | 206 | 7,074 | ||||||
| Vinci SA | 138 | 14,622 | ||||||
| 331,795 | ||||||||
| Germany | 10.4% | ||||||||
| Allianz SE | 327 | 77,309 | ||||||
| Bayerische Motoren Werke AG | 111 | 11,186 | ||||||
The accompanying notes are an integral part of these financial statements.
94 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| Covestro AG | 402 | $ | 24,805 | |||||
| Daimler AG | 249 | 19,121 | ||||||
| Daimler Truck Holding AG (*) | 124 | 4,558 | ||||||
| Deutsche Bank AG (*) | 1,814 | 22,769 | ||||||
| Deutsche Post AG | 1,009 | 64,946 | ||||||
| Deutsche Telekom AG | 203 | 3,773 | ||||||
| Hapag-Lloyd AG | 37 | 11,637 | ||||||
| Merck KGaA | 65 | 16,805 | ||||||
| Nemetschek SE | 99 | 12,700 | ||||||
| SAP SE | 288 | 41,132 | ||||||
| 310,741 | ||||||||
| Hong Kong | 1.4% | ||||||||
| Jardine Matheson Holdings, Ltd. | 300 | 16,515 | ||||||
| Kerry Properties, Ltd. | 1,500 | 3,907 | ||||||
| Swire Pacific, Ltd., Class A | 1,000 | 5,690 | ||||||
| Xinyi Glass Holdings, Ltd. | 6,000 | 15,024 | ||||||
| 41,136 | ||||||||
| Israel | 0.5% | ||||||||
| Bank Hapoalim BM | 371 | 3,820 | ||||||
| Bank Leumi Le-Israel BM | 788 | 8,467 | ||||||
| Perion Network, Ltd. (*) | 131 | 3,151 | ||||||
| 15,438 | ||||||||
| Italy | 2.9% | ||||||||
| De’ Longhi SpA | 71 | 2,537 | ||||||
| Enel SpA | 1,959 | 15,601 | ||||||
| Eni SpA | 724 | 10,008 | ||||||
| Reply SpA | 60 | 12,112 | ||||||
| UniCredit SpA | 2,949 | 45,396 | ||||||
| 85,654 | ||||||||
| Japan | 22.8% | ||||||||
| AGC, Inc. | 400 | 19,093 | ||||||
| Ajinomoto Co., Inc. | 200 | 6,081 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 95
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| Asahi Kasei Corp. | 600 | $ | 5,639 | |||||
| Canon, Inc. | 500 | 12,176 | ||||||
| Dai-ichi Life Holdings, Inc. | 1,800 | 36,366 | ||||||
| Daikin Industries, Ltd. | 100 | 22,685 | ||||||
| Daiwa House Industry Co., Ltd. | 300 | 8,628 | ||||||
| DCM Holdings Co., Ltd. | 600 | 5,555 | ||||||
| EDION Corp. | 600 | 5,597 | ||||||
| Electric Power Development Co., Ltd. | 1,000 | 13,275 | ||||||
| ENEOS Holdings, Inc. | 3,600 | 13,476 | ||||||
| Honda Motor Co., Ltd. | 300 | 8,425 | ||||||
| Iida Group Holdings Co., Ltd. | 1,100 | 25,521 | ||||||
| Japan Post Bank Co., Ltd. | 900 | 8,255 | ||||||
| Japan Post Holdings Co., Ltd. | 2,500 | 19,513 | ||||||
| Japan Tobacco, Inc. | 2,500 | 50,406 | ||||||
| KDDI Corp. | 1,000 | 29,229 | ||||||
| Ki-Star Real Estate Co., Ltd. | 100 | 7,764 | ||||||
| Kubota Corp. | 400 | 8,881 | ||||||
| Kureha Corp. | 100 | 7,147 | ||||||
| Lawson, Inc. | 200 | 9,464 | ||||||
| Macnica Fuji Electronics Holdings, Inc. | 100 | 2,393 | ||||||
| McDonald’s Holdings Co. Japan, Ltd. | 500 | 22,125 | ||||||
| Mitsubishi Electric Corp. | 4,600 | 58,331 | ||||||
| Murata Manufacturing Co., Ltd. | 100 | 7,940 | ||||||
| NEC Corp. | 100 | 4,617 | ||||||
| NH Foods, Ltd. | 100 | 3,599 | ||||||
| Nintendo Co., Ltd. ADR | 482 | 28,134 | ||||||
| Nippon Telegraph & Telephone Corp. | 200 | 5,468 | ||||||
| Nishi-Nippon Financial Holdings, Inc. | 500 | 3,234 | ||||||
| Nisshinbo Holdings, Inc. | 1,400 | 10,630 | ||||||
| NTT Data Corp. | 200 | 4,288 | ||||||
| Okamura Corp. | 500 | 5,577 | ||||||
| Olympus Corp. | 100 | 2,297 | ||||||
| ORIX Corp. | 1,000 | 20,410 | ||||||
| Panasonic Corp. | 4,100 | 45,094 | ||||||
| Shimano, Inc. ADR | 409 | 10,937 | ||||||
| Shin-Etsu Chemical Co., Ltd. | 33 | 5,715 | ||||||
The accompanying notes are an integral part of these financial statements.
96 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| SKY Perfect JSAT Holdings, Inc. | 1,600 | $ | 5,842 | |||||
| Softbank Corp. | 2,500 | 31,613 | ||||||
| Sumitomo Chemical Co., Ltd. | 3,400 | 16,022 | ||||||
| Sumitomo Mitsui Financial Group, Inc. | 100 | 3,418 | ||||||
| Tokyo Electron, Ltd. | 100 | 57,246 | ||||||
| ZOZO, Inc. | 100 | 3,114 | ||||||
| 681,220 | ||||||||
| Luxembourg | 0.2% | ||||||||
| Eurofins Scientific SE | 57 | 7,057 | ||||||
| Netherlands | 8.1% | ||||||||
| Adyen NV (*) | 7 | 18,313 | ||||||
| ASML Holding NV | 100 | 79,737 | ||||||
| Koninklijke Ahold Delhaize NV | 237 | 8,121 | ||||||
| NN Group NV | 380 | 20,538 | ||||||
| Royal Dutch Shell PLC, A Shares | 3,328 | 73,023 | ||||||
| Wolters Kluwer NV | 360 | 42,313 | ||||||
| 242,045 | ||||||||
| New Zealand | 0.1% | ||||||||
| Fisher & Paykel Healthcare Corp., Ltd., Class C | 129 | 2,893 | ||||||
| Russia | 0.6% | ||||||||
| Coca-Cola HBC AG | 536 | 18,479 | ||||||
| Singapore | 0.8% | ||||||||
| DBS Group Holdings, Ltd. | 700 | 16,948 | ||||||
| STMicroelectronics NV | 166 | 8,137 | ||||||
| 25,085 | ||||||||
| South Africa | 0.7% | ||||||||
| Anglo American PLC | 540 | 22,104 | ||||||
| Spain | 1.8% | ||||||||
| Banco Bilbao Vizcaya Argentaria SA | 1,608 | 9,547 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 97
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| Banco de Sabadell SA (*) | 9,104 | $ | 6,036 | |||||
| Iberdrola SA | 2,759 | 32,331 | ||||||
| Laboratorios Farmaceuticos Rovi SA | 52 | 4,361 | ||||||
| 52,275 | ||||||||
| Sweden | 2.6% | ||||||||
| Getinge AB, B Shares | 83 | 3,605 | ||||||
| Husqvarna AB, B Shares | 388 | 6,178 | ||||||
| Investor AB B Shares | 210 | 5,252 | ||||||
| Lundin Energy AB | 163 | 5,845 | ||||||
| Skandinaviska Enskilda Banken AB, Class A | 820 | 11,360 | ||||||
| SSAB AB B Shares (*) | 1,686 | 8,454 | ||||||
| Swedish Match AB | 740 | 5,880 | ||||||
| Telefonaktiebolaget LM Ericsson, B Shares | 1,890 | 20,759 | ||||||
| Thule Group AB | 96 | 5,803 | ||||||
| Volvo AB, Class B | 166 | 3,827 | ||||||
| 76,963 | ||||||||
| Switzerland | 7.5% | ||||||||
| Logitech International SA | 138 | 11,550 | ||||||
| Nestle SA | 114 | 15,936 | ||||||
| Novartis AG | 134 | 11,768 | ||||||
| Partners Group Holding AG | 9 | 14,837 | ||||||
| Roche Holding AG | 247 | 102,390 | ||||||
| Sensirion Holding AG (*) | 43 | 6,242 | ||||||
| Sonova Holding AG | 24 | 9,374 | ||||||
| Swissquote Group Holding SA | 17 | 3,731 | ||||||
| UBS Group AG | 2,732 | 49,034 | ||||||
| 224,862 | ||||||||
| Taiwan | 0.1% | ||||||||
| Sea, Ltd. ADR (*) | 17 | 3,803 | ||||||
The accompanying notes are an integral part of these financial statements.
98 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| United Kingdom | 10.8% | ||||||||
| Barclays PLC | 10,948 | $ | 27,828 | |||||
| BP PLC Sponsored ADR | 333 | 8,868 | ||||||
| Computacenter PLC | 87 | 3,429 | ||||||
| Experian PLC | 118 | 5,789 | ||||||
| GlaxoSmithKline PLC | 3,357 | 72,995 | ||||||
| Halfords Group PLC | 585 | 2,737 | ||||||
| HSBC Holdings PLC | 1,265 | 7,655 | ||||||
| IMI PLC | 142 | 3,328 | ||||||
| Imperial Brands PLC | 2,255 | 49,311 | ||||||
| Investec PLC | 673 | 3,657 | ||||||
| J Sainsbury PLC | 1,995 | 7,438 | ||||||
| Natwest Group PLC | 4,651 | 14,172 | ||||||
| Next PLC | 147 | 16,173 | ||||||
| RELX PLC | 52 | 1,695 | ||||||
| Safestore Holdings PLC REIT | 409 | 7,792 | ||||||
| Standard Chartered PLC | 3,609 | 21,812 | ||||||
| Unilever PLC | 747 | 40,002 | ||||||
| Virgin Money UK PLC (*) | 1,115 | 2,674 | ||||||
| Vodafone Group PLC | 16,371 | 24,417 | ||||||
| 321,772 | ||||||||
| United States | 2.7% | ||||||||
| International Game Technology PLC | 336 | 9,714 | ||||||
| James Hardie Industries PLC | 315 | 12,679 | ||||||
| Schneider Electric SE | 106 | 20,781 | ||||||
| Spotify Technology SA (*) | 38 | 8,893 | ||||||
| Stellantis NV | 1,572 | 29,617 | ||||||
| 81,684 | ||||||||
| Total Common Stocks (Cost $2,655,541) | 2,998,160 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 99
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (concluded) | ||||||||
| Preferred Stocks | 0.1% | ||||||||
| Germany | 0.1% | ||||||||
| Draegerwerk AG & Co. KGaA (Cost $2,884) | 37 | $ | 2,328 | |||||
| Short-Term Investments | 0.6% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $17,595) | 17,595 | 17,595 | ||||||
| Total Investments | 100.9% (Cost $2,676,020) | $ | 3,018,083 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.9)% | (27,954 | ) | ||||||
| Net Assets | 100.0% | $ | 2,990,129 | ||||||
The accompanying notes are an integral part of these financial statements.
100 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 101
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Portfolio (continued) | ||||||||
| Continental AG (*) | 217,131 | $ | 22,987,730 | |||||
| Infineon Technologies AG | 508,405 | 23,574,256 | ||||||
| Merck KGaA | 135,650 | 35,070,032 | ||||||
| MTU Aero Engines AG | 146,460 | 29,777,673 | ||||||
| ProSiebenSat.1 Media SE | 773,705 | 12,352,464 | ||||||
| Vonovia SE | 406,658 | 22,454,215 | ||||||
| 159,703,154 | ||||||||
| India | 1.0% | ||||||||
| Reliance Industries, Ltd. | 558,807 | 17,791,795 | ||||||
| Ireland | 1.3% | ||||||||
| Ryanair Holdings PLC Sponsored ADR (*) | 220,616 | 22,575,635 | ||||||
| Israel | 1.7% | ||||||||
| Bank Leumi Le-Israel BM | 2,859,618 | 30,727,128 | ||||||
| Italy | 1.7% | ||||||||
| Enel SpA | 3,745,379 | 29,828,069 | ||||||
| Japan | 14.8% | ||||||||
| Asics Corp. | 549,400 | 12,180,778 | ||||||
| Bandai Namco Holdings, Inc. | 227,500 | 17,790,061 | ||||||
| Daikin Industries, Ltd. | 94,500 | 21,437,698 | ||||||
| Daiwa House Industry Co., Ltd. | 842,781 | 24,238,613 | ||||||
| Disco Corp. | 55,800 | 17,053,859 | ||||||
| Fujitsu, Ltd. | 140,878 | 24,137,703 | ||||||
| Hitachi, Ltd. | 421,700 | 22,842,219 | ||||||
| Makita Corp. | 504,900 | 21,436,010 | ||||||
| MatsukiyoCocokara & Co. | 595,200 | 21,981,801 | ||||||
| Nexon Co., Ltd. | 874,482 | 16,864,129 | ||||||
| Shimano, Inc. | 93,100 | 24,742,213 | ||||||
| Suzuki Motor Corp. | 469,900 | 18,095,020 | ||||||
| Yamaha Corp. | 391,300 | 19,290,209 | ||||||
| 262,090,313 | ||||||||
The accompanying notes are an integral part of these financial statements.
102 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Portfolio (continued) | ||||||||
| Mexico | 0.9% | ||||||||
| Arca Continental SAB de CV | 2,377,312 | $ | 15,154,051 | |||||
| Netherlands | 6.5% | ||||||||
| Akzo Nobel NV | 239,435 | 26,356,899 | ||||||
| JDE Peet’s NV | 275,270 | 8,481,779 | ||||||
| Koninklijke DSM NV | 149,673 | 33,605,779 | ||||||
| Universal Music Group NV | 667,534 | 18,820,844 | ||||||
| Wolters Kluwer NV | 232,865 | 27,369,905 | ||||||
| 114,635,206 | ||||||||
| Norway | 2.0% | ||||||||
| Equinor ASA | 619,885 | 16,355,132 | ||||||
| Telenor ASA | 1,248,147 | 19,639,726 | ||||||
| 35,994,858 | ||||||||
| Portugal | 0.9% | ||||||||
| Galp Energia SGPS SA | 1,726,875 | 16,745,388 | ||||||
| Singapore | 1.3% | ||||||||
| DBS Group Holdings, Ltd. | 936,120 | 22,664,634 | ||||||
| South Africa | 1.4% | ||||||||
| Anglo American PLC | 611,933 | 25,048,180 | ||||||
| South Korea | 1.9% | ||||||||
| Osstem Implant Co., Ltd. (*) | 108,108 | 12,936,070 | ||||||
| SK Hynix, Inc. | 197,768 | 21,638,143 | ||||||
| 34,574,213 | ||||||||
| Spain | 1.4% | ||||||||
| Industria de Diseno Textil SA | 762,487 | 24,710,990 | ||||||
| Sweden | 1.4% | ||||||||
| Sandvik AB | 885,438 | 24,738,989 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 103
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Portfolio (continued) | ||||||||
| Switzerland | 3.8% | ||||||||
| ABB, Ltd. | 1,012,278 | $ | 38,569,093 | |||||
| Novartis AG | 333,857 | 29,318,084 | ||||||
| 67,887,177 | ||||||||
| United Kingdom | 13.5% | ||||||||
| 3i Group PLC | 1,291,818 | 25,274,273 | ||||||
| Barclays PLC | 9,928,045 | 25,234,947 | ||||||
| Compass Group PLC (*) | 969,472 | 21,596,219 | ||||||
| Petershill Partners PLC | 2,865,778 | 10,647,185 | ||||||
| Prudential PLC | 1,060,792 | 18,292,359 | ||||||
| RELX PLC | 1,832,048 | 59,709,492 | ||||||
| Smith & Nephew PLC | 991,743 | 17,358,880 | ||||||
| Tesco PLC | 9,091,669 | 35,645,137 | ||||||
| Unilever PLC | 494,184 | 26,475,614 | ||||||
| 240,234,106 | ||||||||
| United States | 7.0% | ||||||||
| Aon PLC, Class A | 140,754 | 42,305,022 | ||||||
| BRP, Inc. | 159,967 | 14,011,893 | ||||||
| Ferguson PLC | 144,177 | 25,611,719 | ||||||
| Medtronic PLC | 416,615 | 43,098,822 | ||||||
| 125,027,456 | ||||||||
| Total Common Stocks (Cost $1,351,572,664) | 1,694,125,106 | |||||||
| Preferred Stocks | 1.3% | ||||||||
| Germany | 1.3% | ||||||||
| Volkswagen AG (Cost $19,033,306) | 118,454 | 23,938,298 | ||||||
The accompanying notes are an integral part of these financial statements.
104 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Portfolio (concluded) | ||||||||
| Short-Term Investments | 3.3% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $59,248,348) | 59,248,348 | $ | 59,248,348 | |||||
| Total Investments | 100.0% (Cost $1,429,854,318) | $ | 1,777,311,752 | ||||||
| Liabilities in Excess of Cash and Other Assets | 0.0% | (818,057 | ) | ||||||
| Net Assets | 100.0% | $ | 1,776,493,695 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 105
The accompanying notes are an integral part of these financial statements.
106 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Select Portfolio (continued) | ||||||||
| Safran SA | 9,792 | $ | 1,202,641 | |||||
| Sanofi | 20,080 | 2,017,511 | ||||||
| 8,617,692 | ||||||||
| Germany | 4.4% | ||||||||
| adidas AG | 2,399 | 691,874 | ||||||
| Continental AG (*) | 8,946 | 947,116 | ||||||
| Infineon Technologies AG | 14,430 | 669,105 | ||||||
| Merck KGaA | 5,173 | 1,337,393 | ||||||
| 3,645,488 | ||||||||
| India | 3.6% | ||||||||
| ICICI Bank, Ltd. Sponsored ADR | 85,930 | 1,700,555 | ||||||
| Reliance Industries, Ltd. | 39,340 | 1,252,542 | ||||||
| 2,953,097 | ||||||||
| Indonesia | 1.9% | ||||||||
| PT Bank Mandiri (Persero) Tbk | 1,878,600 | 925,711 | ||||||
| PT Telkom Indonesia (Persero) Tbk ADR | 22,255 | 645,172 | ||||||
| 1,570,883 | ||||||||
| Ireland | 1.0% | ||||||||
| Ryanair Holdings PLC Sponsored ADR (*) | 7,979 | 816,491 | ||||||
| Italy | 1.4% | ||||||||
| Enel SpA | 150,212 | 1,196,283 | ||||||
| Japan | 8.1% | ||||||||
| Bandai Namco Holdings, Inc. | 11,100 | 867,999 | ||||||
| Daikin Industries, Ltd. | 2,900 | 657,876 | ||||||
| Fujitsu, Ltd. | 5,100 | 873,822 | ||||||
| Hitachi, Ltd. | 15,800 | 855,838 | ||||||
| Makita Corp. | 32,300 | 1,371,327 | ||||||
| Shimano, Inc. | 5,700 | 1,514,829 | ||||||
| Suzuki Motor Corp. | 15,000 | 577,624 | ||||||
| 6,719,315 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 107
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Select Portfolio (continued) | ||||||||
| Mexico | 1.5% | ||||||||
| Grupo Financiero Banorte SAB de CV, Class O | 193,000 | $ | 1,253,833 | |||||
| Netherlands | 6.2% | ||||||||
| Akzo Nobel NV | 11,307 | 1,244,670 | ||||||
| Koninklijke DSM NV | 6,700 | 1,504,338 | ||||||
| Universal Music Group NV | 41,398 | 1,167,199 | ||||||
| Wolters Kluwer NV | 10,245 | 1,204,151 | ||||||
| 5,120,358 | ||||||||
| Norway | 1.9% | ||||||||
| Equinor ASA | 30,019 | 792,025 | ||||||
| Telenor ASA | 52,727 | 829,665 | ||||||
| 1,621,690 | ||||||||
| Singapore | 1.2% | ||||||||
| DBS Group Holdings, Ltd. | 40,500 | 980,556 | ||||||
| South Africa | 1.7% | ||||||||
| Anglo American PLC | 19,005 | 777,929 | ||||||
| Mr Price Group, Ltd. | 48,640 | 609,008 | ||||||
| 1,386,937 | ||||||||
| South Korea | 3.3% | ||||||||
| KB Financial Group, Inc. | 17,892 | 824,739 | ||||||
| LG Household & Health Care, Ltd. (*) | 598 | 551,682 | ||||||
| SK Hynix, Inc. | 12,721 | 1,391,827 | ||||||
| 2,768,248 | ||||||||
| Spain | 1.2% | ||||||||
| Industria de Diseno Textil SA | 29,929 | 969,951 | ||||||
The accompanying notes are an integral part of these financial statements.
108 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Select Portfolio (continued) | ||||||||
| Sweden | 1.5% | ||||||||
| Sandvik AB | 43,694 | $ | 1,220,803 | |||||
| Switzerland | 4.9% | ||||||||
| ABB, Ltd. | 45,583 | 1,736,771 | ||||||
| Cie Financiere Richemont SA, Class A | 5,672 | 846,961 | ||||||
| Novartis AG | 17,320 | 1,520,978 | ||||||
| 4,104,710 | ||||||||
| Taiwan | 2.1% | ||||||||
| Taiwan Semiconductor Manufacturing Co., Ltd. | 80,000 | 1,771,421 | ||||||
| United Kingdom | 11.8% | ||||||||
| Barclays PLC | 323,580 | 822,471 | ||||||
| BP PLC | 454,618 | 2,022,467 | ||||||
| Compass Group PLC (*) | 51,859 | 1,155,225 | ||||||
| Prudential PLC | 34,739 | 599,041 | ||||||
| RELX PLC | 74,622 | 2,432,055 | ||||||
| Tesco PLC | 406,850 | 1,595,111 | ||||||
| Unilever PLC | 21,035 | 1,126,938 | ||||||
| 9,753,308 | ||||||||
| United States | 8.7% | ||||||||
| Accenture PLC, Class A | 4,716 | 1,955,018 | ||||||
| Aon PLC, Class A | 5,878 | 1,766,691 | ||||||
| Clarivate PLC (*) | 28,961 | 681,163 | ||||||
| Ferguson PLC | 8,191 | 1,455,056 | ||||||
| Medtronic PLC | 13,253 | 1,371,023 | ||||||
| 7,228,951 | ||||||||
| Total Common Stocks (Cost $64,931,562) | 77,609,864 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 109
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Select Portfolio (concluded) | ||||||||
| Preferred Stocks | 1.2% | ||||||||
| Germany | 1.2% | ||||||||
| Volkswagen AG (Cost $818,302) | 4,915 | $ | 993,270 | |||||
| Short-Term Investments | 4.8% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $3,963,861) | 3,963,861 | 3,963,861 | ||||||
| Total Investments | 99.5% (Cost $69,713,725) | $ | 82,566,995 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.5% | 380,614 | |||||||
| Net Assets | 100.0% | $ | 82,947,609 | ||||||
The accompanying notes are an integral part of these financial statements.
110 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 111
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Value Portfolio (continued) | ||||||||
| Macau | 2.4% | ||||||||
| SJM Holdings, Ltd. (*) | 106,306 | $ | 71,585 | |||||
| Mexico | 5.2% | ||||||||
| Arca Continental SAB de CV | 9,937 | 63,343 | ||||||
| Fomento Economico Mexicano SAB de CV Sponsored ADR | 1,194 | 92,786 | ||||||
| 156,129 | ||||||||
| Netherlands | 3.6% | ||||||||
| Akzo Nobel NV | 973 | 107,107 | ||||||
| Russia | 2.1% | ||||||||
| Coca-Cola HBC AG | 1,850 | 63,781 | ||||||
| South Korea | 6.0% | ||||||||
| Kangwon Land, Inc. (*) | 4,066 | 82,022 | ||||||
| SK Square Co., Ltd. (*) | 742 | 41,446 | ||||||
| SK Telecom Co., Ltd. | 1,147 | 55,842 | ||||||
| 179,310 | ||||||||
| Spain | 2.7% | ||||||||
| Banco Santander SA | 24,375 | 81,357 | ||||||
| United Kingdom | 15.1% | ||||||||
| 3i Group PLC | 4,204 | 82,251 | ||||||
| Barclays PLC | 44,583 | 113,320 | ||||||
| BP PLC | 30,768 | 136,878 | ||||||
| Prudential PLC | 4,315 | 74,408 | ||||||
| WH Smith PLC (*) | 2,324 | 46,383 | ||||||
| 453,240 | ||||||||
| United States | 2.8% | ||||||||
| Stellantis NV | 4,398 | 83,360 | ||||||
The accompanying notes are an integral part of these financial statements.
112 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Value Portfolio (concluded) | ||||||||
| Total Common Stocks (Cost $2,848,345) | $ | 3,008,802 | ||||||
| Total Investments | 100.3% (Cost $2,848,345) | $ | 3,008,802 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.3)% | (10,124 | ) | ||||||
| Net Assets | 100.0% | $ | 2,998,678 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 113
The accompanying notes are an integral part of these financial statements.
114 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Quality Growth Portfolio (continued) | ||||||||
| India | 3.0% | ||||||||
| HDFC Bank, Ltd. ADR | 28,531 | $ | 1,856,512 | |||||
| Israel | 1.8% | ||||||||
| Check Point Software Technologies, Ltd. (*) | 9,787 | 1,140,773 | ||||||
| Japan | 6.6% | ||||||||
| Pigeon Corp. | 19,500 | 372,630 | ||||||
| Shimano, Inc. | 3,200 | 850,431 | ||||||
| SMS Co., Ltd. | 36,000 | 1,411,902 | ||||||
| Toei Animation Co., Ltd. | 9,300 | 922,470 | ||||||
| Workman Co., Ltd. | 11,900 | 569,017 | ||||||
| 4,126,450 | ||||||||
| Netherlands | 9.5% | ||||||||
| ASML Holding NV | 4,151 | 3,309,894 | ||||||
| Universal Music Group NV | 46,121 | 1,300,362 | ||||||
| Wolters Kluwer NV | 11,604 | 1,363,882 | ||||||
| 5,974,138 | ||||||||
| Norway | 1.6% | ||||||||
| Gjensidige Forsikring ASA | 40,891 | 993,191 | ||||||
| South Africa | 2.2% | ||||||||
| Clicks Group, Ltd. | 69,826 | 1,381,547 | ||||||
| South Korea | 1.2% | ||||||||
| LG Household & Health Care, Ltd. (*) | 848 | 782,318 | ||||||
| Spain | 1.9% | ||||||||
| Industria de Diseno Textil SA | 37,317 | 1,209,385 | ||||||
| Sweden | 5.2% | ||||||||
| Assa Abloy AB, Class B | 54,184 | 1,645,998 | ||||||
| Hexagon AB, B Shares | 103,646 | 1,631,757 | ||||||
| 3,277,755 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 115
| Description | Shares | Fair Value | ||||||
| Lazard International Quality Growth Portfolio (continued) | ||||||||
| Switzerland | 4.1% | ||||||||
| Partners Group Holding AG | 1,569 | $ | 2,586,523 | |||||
| Taiwan | 3.8% | ||||||||
| Taiwan Semiconductor Manufacturing Co., Ltd.Sponsored ADR | 19,739 | 2,374,799 | ||||||
| United Kingdom | 16.7% | ||||||||
| Dechra Pharmaceuticals PLC | 19,291 | 1,390,320 | ||||||
| Diageo PLC | 32,985 | 1,798,109 | ||||||
| Intertek Group PLC | 17,673 | 1,343,916 | ||||||
| London Stock Exchange Group PLC | 12,214 | 1,143,206 | ||||||
| Prudential PLC | 59,848 | 1,032,022 | ||||||
| RELX PLC | 68,621 | 2,220,163 | ||||||
| Unilever PLC | 29,489 | 1,579,153 | ||||||
| 10,506,889 | ||||||||
| United States | 5.3% | ||||||||
| Aon PLC, Class A | 7,277 | 2,187,175 | ||||||
| BRP, Inc. | 13,392 | 1,173,037 | ||||||
| 3,360,212 | ||||||||
| Total Common Stocks (Cost $58,299,469) | 61,768,718 | |||||||
| Short-Term Investments | 1.7% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $1,047,573) | 1,047,573 | 1,047,573 | ||||||
The accompanying notes are an integral part of these financial statements.
116 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Quality Growth Portfolio (concluded) | ||||||||
| Total Investments | 100.0% (Cost $59,347,042) | $ | 62,816,291 | ||||||
| Liabilities in Excess of Cash and Other Assets | 0.0% | (15,085 | ) | ||||||
| Net Assets l 100.0% | $ | 62,801,206 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 117
The accompanying notes are an integral part of these financial statements.
118 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Small Cap Equity Portfolio (continued) | ||||||||
| France | 1.3% | ||||||||
| Gaztransport Et Technigaz SA | 3,591 | $ | 335,921 | |||||
| Germany | 14.3% | ||||||||
| Aroundtown SA | 39,194 | 237,392 | ||||||
| Bike24 Holding AG | 9,587 | 167,966 | ||||||
| Cherry AG | 6,049 | 171,411 | ||||||
| CompuGroup Medical SE & Co. KgaA | 3,059 | 247,523 | ||||||
| Covestro AG | 7,134 | 440,203 | ||||||
| CTS Eventim AG & Co. KGaA (*) | 3,451 | 253,212 | ||||||
| Dermapharm Holding SE | 5,242 | 532,878 | ||||||
| FlatexDEGIRO AG (*) | 17,415 | 401,025 | ||||||
| Friedrich Vorwerk Group SE | 2,498 | 80,928 | ||||||
| JOST Werke AG | 5,883 | 331,522 | ||||||
| LEG Immobilien SE | 2,322 | 324,361 | ||||||
| Sirius Real Estate, Ltd. | 181,317 | 347,068 | ||||||
| Stabilus SA | 3,296 | 242,131 | ||||||
| 3,777,620 | ||||||||
| Greece | 1.3% | ||||||||
| JUMBO SA | 13,659 | 195,840 | ||||||
| Terna Energy SA | 10,208 | 157,916 | ||||||
| 353,756 | ||||||||
| Ireland | 1.0% | ||||||||
| Dalata Hotel Group PLC (*) | 63,384 | 267,941 | ||||||
| Israel | 1.0% | ||||||||
| Strauss Group, Ltd. | 8,736 | 272,219 | ||||||
| Italy | 6.2% | ||||||||
| Ariston Holding NV | 20,984 | 242,247 | ||||||
| Banca Generali SpA | 6,604 | 289,296 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 119
| Description | Shares | Fair Value | ||||||
| Lazard International Small Cap Equity Portfolio (continued) | ||||||||
| Italgas SpA | 59,449 | $ | 407,741 | |||||
| Stevanato Group SpA | 13,736 | 308,373 | ||||||
| Tinexta Spa | 9,101 | 392,242 | ||||||
| 1,639,899 | ||||||||
| Japan | 23.5% | ||||||||
| Ariake Japan Co., Ltd. | 4,600 | 249,553 | ||||||
| ARTERIA Networks Corp. | 18,400 | 247,156 | ||||||
| Bell System24 Holdings, Inc. | 22,500 | 244,722 | ||||||
| Daiseki Co., Ltd. | 7,720 | 342,986 | ||||||
| Digital Garage, Inc. | 5,500 | 234,080 | ||||||
| DTS Corp. | 10,100 | 221,641 | ||||||
| GMO internet, Inc. | 7,300 | 171,222 | ||||||
| Hulic Co., Ltd. | 28,800 | 273,436 | ||||||
| Industrial & Infrastructure Fund Investment Corp. REIT | 134 | 258,704 | ||||||
| JAFCO Group Co., ltd. | 4,900 | 282,037 | ||||||
| MatsukiyoCocokara & Co. | 6,800 | 251,136 | ||||||
| Nippon Shinyaku Co., Ltd. | 3,500 | 243,248 | ||||||
| Open House Co., Ltd. | 5,200 | 272,541 | ||||||
| Pigeon Corp. | 13,300 | 254,153 | ||||||
| Relo Group, Inc. | 13,700 | 247,639 | ||||||
| Roland Corp. | 7,100 | 242,594 | ||||||
| Rorze Corp. | 2,400 | 257,169 | ||||||
| Ryohin Keikaku Co., Ltd. | 14,900 | 227,223 | ||||||
| Seria Co., Ltd. | 8,500 | 246,433 | ||||||
| TechnoPro Holdings, Inc. | 11,035 | 334,829 | ||||||
| Trend Micro, Inc. | 5,300 | 293,180 | ||||||
| Trusco Nakayama Corp. | 10,600 | 251,684 | ||||||
| USS Co., Ltd. | 16,100 | 251,401 | ||||||
| Zenkoku Hosho Co., Ltd. | 7,642 | 332,885 | ||||||
| 6,231,652 | ||||||||
The accompanying notes are an integral part of these financial statements.
120 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Small Cap Equity Portfolio (continued) | ||||||||
| Jersey | 2.0% | ||||||||
| JTC PLC | 42,342 | $ | 524,932 | |||||
| Netherlands | 5.7% | ||||||||
| Aalberts NV | 7,108 | 467,683 | ||||||
| Arcadis NV | 10,056 | 485,840 | ||||||
| ASM International NV | 700 | 307,390 | ||||||
| Van Lanschot Kempen NV | 9,772 | 244,276 | ||||||
| 1,505,189 | ||||||||
| New Zealand | 1.0% | ||||||||
| Freightways, Ltd. | 31,362 | 275,901 | ||||||
| Norway | 1.4% | ||||||||
| Crayon Group Holding ASA (*) | 18,080 | 374,894 | ||||||
| Singapore | 0.8% | ||||||||
| XP Power, Ltd. | 3,202 | 221,202 | ||||||
| Spain | 2.6% | ||||||||
| Bankinter SA | 86,062 | 436,380 | ||||||
| Linea Directa Aseguradora SA Cia de Seguros y Reaseguros | 135,944 | 247,414 | ||||||
| 683,794 | ||||||||
| Sweden | 3.9% | ||||||||
| Byggfakta Group Nordic Holdco AB | 32,435 | 233,128 | ||||||
| Lindab International AB | 10,642 | 378,414 | ||||||
| Nordnet AB publ | 6,638 | 127,484 | ||||||
| Synsam AB | 35,003 | 298,270 | ||||||
| 1,037,296 | ||||||||
| United Kingdom | 15.1% | ||||||||
| Ascential PLC (*) | 30,036 | 163,355 | ||||||
| Auto Trader Group PLC | 29,367 | 293,548 | ||||||
| Britvic PLC | 18,386 | 228,895 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 121
| Description | Shares | Fair Value | ||||||
| Lazard International Small Cap Equity Portfolio (concluded) | ||||||||
| Bytes Technology Group PLC | 26,432 | $ | 202,673 | |||||
| ConvaTec Group PLC | 96,839 | 252,966 | ||||||
| Electrocomponents PLC | 21,383 | 348,065 | ||||||
| Genuit Group. PLC | 45,591 | 361,173 | ||||||
| JD Sports Fashion PLC (*) | 131,142 | 385,312 | ||||||
| Jet2 PLC (*) | 18,486 | 277,836 | ||||||
| Life Science REIT PLC | 196,650 | 269,503 | ||||||
| Marlowe PLC (*) | 15,745 | 217,060 | ||||||
| Pennon Group PLC | 5,790 | 91,678 | ||||||
| Smart Metering Systems PLC | 21,253 | 241,666 | ||||||
| Synthomer PLC | 73,506 | 397,433 | ||||||
| Weir Group PLC | 11,351 | 261,871 | ||||||
| 3,993,034 | ||||||||
| United States | 1.1% | ||||||||
| BRP, Inc. | 3,208 | 280,996 | ||||||
| Total Common Stocks (Cost $21,861,275) | 26,384,581 | |||||||
| Short-Term Investments | 0.4% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $104,224) | 104,224 | 104,224 | ||||||
| Total Investments | 99.9% (Cost $21,965,499) | $ | 26,488,805 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.1% | 21,893 | |||||||
| Net Assets | 100.0% | $ | 26,510,698 | ||||||
The accompanying notes are an integral part of these financial statements.
122 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 123
| Description | Shares | Fair Value | ||||||
| Lazard International Strategic Equity Portfolio (continued) | ||||||||
| Germany | 6.4% | ||||||||
| adidas AG | 307,175 | $ | 88,589,575 | |||||
| Continental AG (*) | 974,455 | 103,165,872 | ||||||
| Infineon Technologies AG | 2,531,694 | 117,392,241 | ||||||
| Vonovia SE | 1,738,547 | 95,996,408 | ||||||
| 405,144,096 | ||||||||
| India | 1.1% | ||||||||
| Housing Development Finance Corp., Ltd. | 2,063,552 | 71,481,224 | ||||||
| Ireland | 1.5% | ||||||||
| Ryanair Holdings PLC Sponsored ADR (*) | 914,353 | 93,565,742 | ||||||
| Israel | 2.7% | ||||||||
| Bank Leumi Le-Israel BM | 15,539,792 | 166,977,960 | ||||||
| Italy | 1.4% | ||||||||
| Enel SpA | 11,325,022 | 90,192,083 | ||||||
| Japan | 12.5% | ||||||||
| BayCurrent Consulting, Inc. | 197,200 | 75,975,526 | ||||||
| Daikin Industries, Ltd. | 593,400 | 134,615,131 | ||||||
| Demae-Can Co., Ltd. (*) | 3,138,300 | 25,014,211 | ||||||
| Kobe Bussan Co., Ltd. | 1,807,400 | 69,925,975 | ||||||
| Makita Corp. | 3,673,491 | 155,961,554 | ||||||
| Shimano, Inc. | 457,800 | 121,664,716 | ||||||
| Suzuki Motor Corp. | 1,850,072 | 71,243,008 | ||||||
| Tokyo Electron, Ltd. | 118,400 | 67,778,685 | ||||||
| Yamaha Corp. | 1,299,272 | 64,051,185 | ||||||
| 786,229,991 | ||||||||
| Mexico | 1.2% | ||||||||
| Arca Continental SAB de CV | 11,808,700 | 75,273,938 | ||||||
The accompanying notes are an integral part of these financial statements.
124 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Strategic Equity Portfolio (continued) | ||||||||
| Netherlands | 3.9% | ||||||||
| Akzo Nobel NV | 1,064,938 | $ | 117,227,906 | |||||
| Universal Music Group NV | 4,482,399 | 126,379,377 | ||||||
| 243,607,283 | ||||||||
| South Korea | 0.4% | ||||||||
| NHN KCP Corp. (*) | 1,105,279 | 28,210,322 | ||||||
| Spain | 4.4% | ||||||||
| Bankinter SA | 12,002,661 | 60,859,881 | ||||||
| Industria de Diseno Textil SA | 3,777,328 | 122,417,188 | ||||||
| Linea Directa Aseguradora SA Cia de Seguros y Reaseguros | 12,002,661 | 21,844,485 | ||||||
| Siemens Gamesa Renewable Energy SA (*) | 2,992,256 | 70,968,987 | ||||||
| 276,090,541 | ||||||||
| Sweden | 1.8% | ||||||||
| Hexagon AB, B Shares | 4,631,543 | 72,916,951 | ||||||
| Volvo Car AB, Class B | 4,616,718 | 39,350,570 | ||||||
| 112,267,521 | ||||||||
| Switzerland | 4.9% | ||||||||
| ABB, Ltd. | 4,708,436 | 179,397,463 | ||||||
| Idorsia, Ltd. (*) | 910,834 | 18,555,504 | ||||||
| Julius Baer Group, Ltd. | 1,668,068 | 111,469,623 | ||||||
| 309,422,590 | ||||||||
| Taiwan | 0.8% | ||||||||
| Taiwan Semiconductor Manufacturing Co., Ltd. | 2,354,000 | 52,124,048 | ||||||
| United Kingdom | 15.0% | ||||||||
| Coca-Cola European Partners PLC | 2,984,603 | 166,282,859 | ||||||
| Compass Group PLC (*) | 4,746,569 | 105,735,848 | ||||||
| Informa PLC (*) | 15,768,784 | 109,794,618 | ||||||
| Linde PLC (*) | 367,009 | 127,848,435 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 125
| Description | Shares | Fair Value | ||||||
| Lazard International Strategic Equity Portfolio (continued) | ||||||||
| Petershill Partners PLC | 10,489,785 | $ | 38,972,553 | |||||
| Prudential PLC | 3,704,108 | 63,873,855 | ||||||
| RELX PLC | 8,055,272 | 262,534,717 | ||||||
| Smith & Nephew PLC | 2,307,517 | 40,389,406 | ||||||
| THG PLC (*) | 9,837,200 | 30,528,824 | ||||||
| 945,961,115 | ||||||||
| United States | 9.1% | ||||||||
| Accenture PLC, Class A | 387,280 | 160,546,924 | ||||||
| Aon PLC, Class A | 726,956 | 218,493,895 | ||||||
| BRP, Inc. | 692,402 | 60,649,150 | ||||||
| Medtronic PLC | 1,277,596 | 132,167,306 | ||||||
| 571,857,275 | ||||||||
| Total Common Stocks (Cost $4,662,209,733) | 6,074,932,328 | |||||||
| Preferred Stocks | 1.7% | ||||||||
| Brazil | 0.5% | ||||||||
| Banco Bradesco SA (Cost $43,280,455) | 9,104,040 | 31,404,625 | ||||||
| Germany | 1.2% | ||||||||
| Volkswagen AG (Cost $64,862,512) | 373,981 | 75,577,596 | ||||||
| Total Preferred Stocks (Cost $108,142,967) | 106,982,221 | |||||||
| Short-Term Investments | 1.7% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $105,564,286) | 105,564,286 | 105,564,286 | ||||||
The accompanying notes are an integral part of these financial statements.
126 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Strategic Equity Portfolio (concluded) | ||||||||
| Total Investments | 99.8% (Cost $4,875,916,986) | $ | 6,287,478,835 | ||||||
| Cash and Other Assets in Excess of Liabilities l 0.2% | 11,414,115 | |||||||
| Net Assets | 100.0% | $ | 6,298,892,950 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 127
The accompanying notes are an integral part of these financial statements.
128 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| La Francaise des Jeux SAEM | 1,703 | $ | 75,453 | |||||
| Orange SA | 17,656 | 189,150 | ||||||
| 435,232 | ||||||||
| Israel | 0.5% | ||||||||
| Bank Leumi Le-Israel BM | 8,074 | 86,757 | ||||||
| Bezeq The Israeli Telecommunication Corp., Ltd. (*) | 40,017 | 66,178 | ||||||
| 152,935 | ||||||||
| Japan | 11.5% | ||||||||
| Advance Residence Investment Corp. REIT | 27 | 89,340 | ||||||
| Ajinomoto Co., Inc. | 2,400 | 72,968 | ||||||
| Chubu Electric Power Co., Inc. | 8,200 | 86,577 | ||||||
| Daito Trust Construction Co., Ltd. | 600 | 68,547 | ||||||
| Daiwa House Industry Co., Ltd. | 4,200 | 120,793 | ||||||
| Daiwa Securities Living Investments Corp. REIT | 94 | 96,783 | ||||||
| DCM Holdings Co., Ltd. | 8,500 | 78,702 | ||||||
| Electric Power Development Co., Ltd. | 18,000 | 238,958 | ||||||
| FUJIFILM Holdings Corp. | 1,800 | 133,432 | ||||||
| Japan Post Bank Co., Ltd. | 38,200 | 350,372 | ||||||
| Japan Post Holdings Co., Ltd. | 30,600 | 238,835 | ||||||
| Japan Real Estate Investment Corp. | 23 | 130,570 | ||||||
| KDDI Corp. | 12,000 | 350,747 | ||||||
| Kyushu Electric Power Co., Inc. | 15,000 | 111,934 | ||||||
| Lawson, Inc. | 1,900 | 89,911 | ||||||
| McDonald’s Holdings Co. Japan, Ltd. | 7,500 | 331,877 | ||||||
| Nippon Express Co., Ltd. (‡) | 2,500 | 150,178 | ||||||
| Nippon Telegraph & Telephone Corp. | 3,800 | 103,899 | ||||||
| Osaka Gas Co., Ltd. | 11,300 | 187,117 | ||||||
| Rengo Co., Ltd. | 10,700 | 80,930 | ||||||
| The Hachijuni Bank, Ltd. | 21,700 | 74,087 | ||||||
| Tohoku Electric Power Co., Inc. | 19,200 | 136,496 | ||||||
| Tokyo Gas Co., Ltd. | 11,700 | 210,298 | ||||||
| Yamazaki Baking Co., Ltd. | 4,600 | 61,106 | ||||||
| 3,594,457 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 129
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| Netherlands | 1.7% | ||||||||
| ASML Holding NV | 102 | $ | 81,332 | |||||
| Flow Traders | 1,452 | 53,259 | ||||||
| Royal Dutch Shell PLC, A Shares | 4,881 | 107,098 | ||||||
| Wolters Kluwer NV | 2,511 | 295,132 | ||||||
| 536,821 | ||||||||
| New Zealand | 0.5% | ||||||||
| Fisher & Paykel Healthcare Corp., Ltd. | 3,398 | 76,201 | ||||||
| Mainfreight, Ltd. | 1,119 | 72,012 | ||||||
| 148,213 | ||||||||
| Norway | 0.8% | ||||||||
| Orkla ASA | 18,620 | 186,692 | ||||||
| Telenor ASA | 4,173 | 65,663 | ||||||
| 252,355 | ||||||||
| South Africa | 0.2% | ||||||||
| Anglo American PLC | 1,609 | 65,861 | ||||||
| Spain | 0.1% | ||||||||
| Corporacion Financiera Alba SA | 428 | 24,976 | ||||||
| Sweden | 1.0% | ||||||||
| Axfood AB | 5,462 | 157,039 | ||||||
| Telefonaktiebolaget LM Ericsson, B Shares | 13,637 | 149,786 | ||||||
| 306,825 | ||||||||
| Switzerland | 3.7% | ||||||||
| PSP Swiss Property AG | 1,484 | 184,735 | ||||||
| Roche Holding AG | 1,435 | 594,858 | ||||||
| Swisscom AG | 526 | 296,739 | ||||||
| Tecan Group AG | 140 | 85,131 | ||||||
| 1,161,463 | ||||||||
The accompanying notes are an integral part of these financial statements.
130 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| United Kingdom | 3.4% | ||||||||
| AstraZeneca PLC Sponsored ADR | 1,213 | $ | 70,657 | |||||
| BP PLC | 14,609 | 64,991 | ||||||
| Genus PLC | 1,150 | 76,724 | ||||||
| GlaxoSmithKline PLC | 6,339 | 137,836 | ||||||
| Howden Joinery Group PLC | 6,512 | 79,242 | ||||||
| HSBC Holdings PLC (*) | 24,729 | 149,638 | ||||||
| Imperial Brands PLC | 4,320 | 94,467 | ||||||
| J Sainsbury PLC | 40,689 | 151,707 | ||||||
| National Grid PLC | 9,505 | 137,143 | ||||||
| Rightmove PLC | 7,578 | 81,373 | ||||||
| 1,043,778 | ||||||||
| United States | 64.6% | ||||||||
| Accenture PLC, Class A | 467 | 193,595 | ||||||
| Activision Blizzard, Inc. | 1,461 | 97,200 | ||||||
| Acushnet Holdings Corp. | 1,391 | 73,834 | ||||||
| Adobe, Inc. (*) | 213 | 120,784 | ||||||
| Agilent Technologies, Inc. | 624 | 99,622 | ||||||
| Akamai Technologies, Inc. (*) | 606 | 70,926 | ||||||
| Alphabet, Inc., Class C (*) | 70 | 202,551 | ||||||
| Amdocs, Ltd. | 1,067 | 79,854 | ||||||
| AMERCO | 159 | 115,471 | ||||||
| Ameren Corp. | 1,081 | 96,220 | ||||||
| American Electric Power Co., Inc. | 1,705 | 151,694 | ||||||
| AmerisourceBergen Corp. | 776 | 103,123 | ||||||
| Amgen, Inc. | 400 | 89,988 | ||||||
| AMN Healthcare Services, Inc. (*) | 1,140 | 139,456 | ||||||
| Aon PLC, Class A | 732 | 220,010 | ||||||
| Automatic Data Processing, Inc. | 482 | 118,852 | ||||||
| AutoZone, Inc. (*) | 71 | 148,844 | ||||||
| Becton, Dickinson & Co. | 482 | 121,213 | ||||||
| Bio-Rad Laboratories, Inc., Class A (*) | 125 | 94,446 | ||||||
| BJ’s Wholesale Club Holdings, Inc. (*) | 1,217 | 81,502 | ||||||
| Booz Allen Hamilton Holding Corp. | 2,549 | 216,130 | ||||||
| Bristol-Myers Squibb Co. | 1,440 | 89,784 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 131
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| Cable One, Inc. | 36 | $ | 63,484 | |||||
| Cadence Design Systems, Inc. (*) | 808 | 150,571 | ||||||
| Caterpillar, Inc. | 358 | 74,013 | ||||||
| Cboe Global Markets, Inc. | 1,366 | 178,126 | ||||||
| Cerner Corp. | 1,022 | 94,913 | ||||||
| CF Industries Holdings, Inc. | 1,340 | 94,845 | ||||||
| Charter Communications, Inc., Class A (*) | 213 | 138,870 | ||||||
| Chemed Corp. | 203 | 107,395 | ||||||
| Chubb, Ltd. | 489 | 94,529 | ||||||
| Church & Dwight Co., Inc. | 988 | 101,270 | ||||||
| Cigna Corp. | 316 | 72,563 | ||||||
| Cirrus Logic, Inc. (*) | 914 | 84,106 | ||||||
| Citrix Systems, Inc. | 925 | 87,496 | ||||||
| Cognizant Technology Solutions Corp., Class A | 964 | 85,526 | ||||||
| Colgate-Palmolive Co. | 5,903 | 503,762 | ||||||
| Comcast Corp., Class A | 2,772 | 139,515 | ||||||
| Corteva, Inc. | 2,933 | 138,672 | ||||||
| CorVel Corp. (*) | 378 | 78,624 | ||||||
| Costco Wholesale Corp. | 305 | 173,148 | ||||||
| Coterra Energy, Inc. | 12,974 | 246,506 | ||||||
| Crown Castle International Corp. REIT | 505 | 105,414 | ||||||
| CVS Health Corp. | 1,277 | 131,735 | ||||||
| Deere & Co. | 182 | 62,406 | ||||||
| DocuSign, Inc. (*) | 641 | 97,631 | ||||||
| Dolby Laboratories, Inc., Class A | 1,292 | 123,024 | ||||||
| Dollar General Corp. | 997 | 235,122 | ||||||
| Domino’s Pizza, Inc. | 195 | 110,044 | ||||||
| DTE Energy Co. | 637 | 76,147 | ||||||
| Electronic Arts, Inc. | 534 | 70,435 | ||||||
| Eli Lilly & Co. | 985 | 272,077 | ||||||
| Evergy, Inc. | 2,009 | 137,837 | ||||||
| Exlservice Holdings, Inc. (*) | 783 | 113,355 | ||||||
| Extra Space Storage, Inc. REIT | 701 | 158,938 | ||||||
| FactSet Research Systems, Inc. | 254 | 123,447 | ||||||
| Flowers Foods, Inc. | 7,604 | 208,882 | ||||||
| FOX Corp., Class B | 1,956 | 67,032 | ||||||
The accompanying notes are an integral part of these financial statements.
132 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| General Mills, Inc. | 2,911 | $ | 196,143 | |||||
| Gilead Sciences, Inc. | 2,281 | 165,623 | ||||||
| Grand Canyon Education, Inc. (*) | 949 | 81,339 | ||||||
| Haemonetics Corp. (*) | 1,051 | 55,745 | ||||||
| Home Depot, Inc. | 170 | 70,552 | ||||||
| Hormel Foods Corp. | 1,450 | 70,774 | ||||||
| IDEXX Laboratories, Inc. (*) | 231 | 152,104 | ||||||
| Incyte Corp. (*) | 1,080 | 79,272 | ||||||
| Ingles Markets, Inc., Class A | 1,080 | 93,247 | ||||||
| Intel Corp. | 5,784 | 297,876 | ||||||
| Intercontinental Exchange, Inc. | 1,484 | 202,967 | ||||||
| Jack Henry & Associates, Inc. | 890 | 148,621 | ||||||
| John Wiley & Sons, Inc., Class A | 1,875 | 107,381 | ||||||
| Johnson & Johnson | 2,284 | 390,724 | ||||||
| Kellogg Co. | 1,435 | 92,443 | ||||||
| Keysight Technologies, Inc. (*) | 1,113 | 229,846 | ||||||
| KLA Corp. | 227 | 97,635 | ||||||
| Laureate Education, Inc., Class A | 6,597 | 80,747 | ||||||
| Life Storage, Inc. REIT | 1,084 | 166,047 | ||||||
| Lockheed Martin Corp. | 515 | 183,036 | ||||||
| Markel Corp. (*) | 61 | 75,274 | ||||||
| Match Group, Inc. (*) | 704 | 93,104 | ||||||
| Matson, Inc. | 1,056 | 95,072 | ||||||
| McDonald’s Corp. | 1,390 | 372,617 | ||||||
| Merck & Co., Inc. | 1,012 | 77,560 | ||||||
| Mettler-Toledo International, Inc. (*) | 43 | 72,980 | ||||||
| Microsoft Corp. | 734 | 246,859 | ||||||
| Monolithic Power Systems, Inc. | 217 | 107,053 | ||||||
| Motorola Solutions, Inc. | 730 | 198,341 | ||||||
| Neurocrine Biosciences, Inc. (*) | 1,078 | 91,813 | ||||||
| New Jersey Resources Corp. | 1,940 | 79,656 | ||||||
| NewMarket Corp. | 196 | 67,173 | ||||||
| Northrop Grumman Corp. | 236 | 91,349 | ||||||
| Omnicom Group, Inc. | 1,633 | 119,650 | ||||||
| Oracle Corp. | 641 | 55,902 | ||||||
| OSI Systems, Inc. (*) | 744 | 69,341 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 133
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| Paychex, Inc. | 1,287 | $ | 175,675 | |||||
| PepsiCo, Inc. | 1,935 | 336,129 | ||||||
| Portland General Electric Co. | 1,450 | 76,734 | ||||||
| Premier, Inc., Class A | 2,115 | 87,075 | ||||||
| Public Storage REIT | 692 | 259,195 | ||||||
| QUALCOMM, Inc. | 514 | 93,995 | ||||||
| Quest Diagnostics, Inc. | 503 | 87,024 | ||||||
| Quidel Corp. (*) | 637 | 85,989 | ||||||
| Republic Services, Inc. | 3,320 | 462,974 | ||||||
| ResMed, Inc. | 507 | 132,063 | ||||||
| Ross Stores, Inc. | 640 | 73,139 | ||||||
| S&P Global, Inc. | 259 | 122,230 | ||||||
| SBA Communications Corp. REIT | 514 | 199,956 | ||||||
| Service Corp. International | 4,305 | 305,612 | ||||||
| Sirius XM Holdings, Inc. | 12,119 | 76,956 | ||||||
| SLM Corp. | 3,972 | 78,129 | ||||||
| Southwest Gas Holdings, Inc. (*) | 1,692 | 118,525 | ||||||
| Synopsys, Inc. (*) | 510 | 187,935 | ||||||
| Target Corp. | 352 | 81,467 | ||||||
| Texas Instruments, Inc. | 378 | 71,242 | ||||||
| The Hartford Financial Services Group, Inc. | 1,321 | 91,202 | ||||||
| The Hershey Co. | 1,826 | 353,276 | ||||||
| The Interpublic Group of Cos., Inc. | 2,417 | 90,517 | ||||||
| The J.M. Smucker Co. | 568 | 77,146 | ||||||
| The Kroger Co. | 1,852 | 83,822 | ||||||
| The New York Times Co. Class A | 1,443 | 69,697 | ||||||
| The Procter & Gamble Co. | 3,103 | 507,589 | ||||||
| The TJX Cos., Inc. | 1,058 | 80,323 | ||||||
| Thermo Fisher Scientific, Inc. | 442 | 294,920 | ||||||
| Tractor Supply Co. | 445 | 106,177 | ||||||
| Tyler Technologies, Inc. (*) | 167 | 89,838 | ||||||
| Tyson Foods, Inc., Class A | 1,298 | 113,134 | ||||||
| United Therapeutics Corp. (*) | 658 | 142,181 | ||||||
| UnitedHealth Group, Inc. | 209 | 104,947 | ||||||
| Verizon Communications, Inc. | 9,055 | 470,498 | ||||||
| Vertex Pharmaceuticals, Inc. (*) | 818 | 179,633 | ||||||
The accompanying notes are an integral part of these financial statements.
134 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (concluded) | ||||||||
| Virtu Financial, Inc., Class A | 5,281 | $ | 152,251 | |||||
| Visa, Inc., Class A | 441 | 95,569 | ||||||
| Vista Outdoor, Inc. (*) | 2,320 | 106,882 | ||||||
| VMware, Inc., Class A | 589 | 68,253 | ||||||
| Walmart, Inc. | 2,846 | 411,788 | ||||||
| Washington Federal, Inc. | 2,086 | 69,631 | ||||||
| Watts Water Technologies, Inc., Class A | 638 | 123,880 | ||||||
| WD-40 Co. | 693 | 169,535 | ||||||
| WEC Energy Group, Inc. | 1,264 | 122,696 | ||||||
| ZipRecruiter, Inc., Class A (*) | 3,000 | 74,820 | ||||||
| Zoetis, Inc. | 1,401 | 341,886 | ||||||
| 20,106,560 | ||||||||
| Total Common Stocks (Cost $28,246,721) | 31,388,194 | |||||||
| Short-Term Investments | 0.7% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $202,828) | 202,828 | 202,828 | ||||||
| Total Investments | 101.5% (Cost $28,449,549) | $ | 31,591,022 | ||||||
| Liabilities in Excess of Cash and Other Assets | (1.5)% | (463,446 | ) | ||||||
| Net Assets | 100.0% | $ | 31,127,576 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 135
The accompanying notes are an integral part of these financial statements.
136 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Equity Concentrated Portfolio (continued) | ||||||||
| Interactive Media & Services | 7.1% | ||||||||
| Alphabet, Inc., Class A (*) | 48,626 | $ | 140,871,467 | |||||
| IT Services | 12.8% | ||||||||
| Fiserv, Inc. (*) | 1,369,298 | 142,119,439 | ||||||
| LiveRamp Holdings, Inc. (*) | 583,158 | 27,962,426 | ||||||
| VeriSign, Inc. (*) | 126,700 | 32,158,994 | ||||||
| Visa, Inc., Class A | 241,028 | 52,233,178 | ||||||
| 254,474,037 | ||||||||
| Life Sciences Tools & Services | 2.0% | ||||||||
| Sotera Health Co. (*) | 1,701,198 | 40,063,213 | ||||||
| Machinery | 3.1% | ||||||||
| Otis Worldwide Corp. | 693,667 | 60,397,586 | ||||||
| Multiline Retail | 5.0% | ||||||||
| Dollar Tree, Inc. (*) | 699,664 | 98,316,785 | ||||||
| Professional Services | 2.4% | ||||||||
| Verisk Analytics, Inc., Class A | 211,282 | 48,326,532 | ||||||
| Road & Rail | 1.9% | ||||||||
| Norfolk Southern Corp. | 124,999 | 37,213,452 | ||||||
| Semiconductors & Semiconductor Equipment | 11.1% | ||||||||
| Analog Devices, Inc. | 720,929 | 126,717,691 | ||||||
| Skyworks Solutions, Inc. | 604,873 | 93,839,997 | ||||||
| 220,557,688 | ||||||||
| Specialty Retail | 3.2% | ||||||||
| Lowe’s Cos., Inc. | 243,003 | 62,811,415 | ||||||
| Total Common Stocks (Cost $1,252,932,663) | 1,961,069,374 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 137
| Description | Shares | Fair Value | ||||||
| Lazard US Equity Concentrated Portfolio (concluded) | ||||||||
| Short-Term Investments | 1.0% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $20,160,204) | 20,160,204 | $ | 20,160,204 | |||||
| Total Investments | 100.0% (Cost $1,273,092,867) | $ | 1,981,229,578 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.0% | 372,677 | |||||||
| Net Assets l 100.0% | $ | 1,981,602,255 | ||||||
The accompanying notes are an integral part of these financial statements.
138 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 139
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard US Equity Focus Portfolio (continued) | ||||||||
| Industrial Conglomerates | 3.4% | ||||||||
| Honeywell International, Inc. | 13,262 | $ | 2,765,260 | |||||
| Insurance | 4.2% | ||||||||
| Marsh & McLennan Cos., Inc. | 19,569 | 3,401,484 | ||||||
| Interactive Media & Services | 7.2% | ||||||||
| Alphabet, Inc., Class A (*) | 2,000 | 5,794,080 | ||||||
| Internet & Direct Marketing Retail | 4.2% | ||||||||
| Amazon.com, Inc. (*) | 999 | 3,331,006 | ||||||
| IT Services | 4.6% | ||||||||
| Visa, Inc., Class A | 17,135 | 3,713,326 | ||||||
| Life Sciences Tools & Services | 7.2% | ||||||||
| Danaher Corp. | 10,984 | 3,613,846 | ||||||
| IQVIA Holdings, Inc. (*) | 7,712 | 2,175,863 | ||||||
| 5,789,709 | ||||||||
| Multiline Retail | 3.5% | ||||||||
| Dollar General Corp. | 11,841 | 2,792,463 | ||||||
| Pharmaceuticals | 4.9% | ||||||||
| Johnson & Johnson | 23,119 | 3,954,967 | ||||||
| Road & Rail | 4.2% | ||||||||
| Norfolk Southern Corp. | 11,289 | 3,360,848 | ||||||
| Semiconductors & Semiconductor Equipment | 4.5% | ||||||||
| Analog Devices, Inc. | 20,559 | 3,613,655 | ||||||
| Software | 9.4% | ||||||||
| Microsoft Corp. | 17,848 | 6,002,639 | ||||||
| salesforce.com, Inc. (*) | 5,983 | 1,520,460 | ||||||
| 7,523,099 | ||||||||
The accompanying notes are an integral part of these financial statements.
140 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard US Equity Focus Portfolio (concluded) | ||||||||
| Specialty Retail | 3.8% | ||||||||
| Lowe’s Cos., Inc. | 11,853 | $ | 3,063,763 | |||||
| Total Common Stocks (Cost $48,914,127) | 78,633,244 | |||||||
| Short-Term Investments | 2.1% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $1,705,866) | 1,705,866 | 1,705,866 | ||||||
| Total Investments | 99.9% (Cost $50,619,993) | $ | 80,339,110 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.1% | 49,799 | |||||||
| Net Assets l 100.0% | $ | 80,388,909 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 141
The accompanying notes are an integral part of these financial statements.
142 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard US Small-Mid Cap Equity Portfolio (continued) | ||||||||
| Chemicals | 2.0% | ||||||||
| Ashland Global Holdings, Inc. | 9,676 | $ | 1,041,718 | |||||
| Ingevity Corp. (*) | 14,853 | 1,064,960 | ||||||
| 2,106,678 | ||||||||
| Communications Equipment | 2.7% | ||||||||
| Ciena Corp. (*) | 21,989 | 1,692,494 | ||||||
| F5, Inc. (*) | 4,944 | 1,209,846 | ||||||
| 2,902,340 | ||||||||
| Construction & Engineering | 0.7% | ||||||||
| Valmont Industries, Inc. | 2,802 | 701,901 | ||||||
| Construction Materials | 1.1% | ||||||||
| Eagle Materials, Inc. | 6,792 | 1,130,596 | ||||||
| Containers & Packaging | 2.3% | ||||||||
| Avery Dennison Corp. | 5,106 | 1,105,806 | ||||||
| Graphic Packaging Holding Co. | 71,139 | 1,387,211 | ||||||
| 2,493,017 | ||||||||
| Electrical Equipment | 4.2% | ||||||||
| Array Technologies, Inc. (*) | 55,840 | 876,130 | ||||||
| Atkore, Inc. (*) | 11,349 | 1,261,895 | ||||||
| EnerSys | 12,504 | 988,566 | ||||||
| GrafTech International, Ltd. | 108,531 | 1,283,922 | ||||||
| 4,410,513 | ||||||||
| Energy Equipment & Services | 2.1% | ||||||||
| Cactus, Inc., Class A | 33,328 | 1,270,797 | ||||||
| Liberty Oilfield Services, Inc., Class A (*) | 96,450 | 935,565 | ||||||
| 2,206,362 | ||||||||
| Entertainment | 1.3% | ||||||||
| Take-Two Interactive Software, Inc. (*) | 7,547 | 1,341,253 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 143
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard US Small-Mid Cap Equity Portfolio (continued) | ||||||||
| Equity Real Estate Investment Trusts (REITs) | 8.1% | ||||||||
| Alexandria Real Estate Equities, Inc. | 6,690 | $ | 1,491,602 | |||||
| Brixmor Property Group, Inc. | 55,439 | 1,408,705 | ||||||
| Camden Property Trust | 7,564 | 1,351,536 | ||||||
| Hudson Pacific Properties, Inc. | 53,753 | 1,328,237 | ||||||
| PS Business Parks, Inc. | 9,685 | 1,783,686 | ||||||
| Summit Hotel Properties, Inc. (*) | 125,679 | 1,226,627 | ||||||
| 8,590,393 | ||||||||
| Food & Staples Retailing | 1.5% | ||||||||
| US Foods Holding Corp. (*) | 46,651 | 1,624,854 | ||||||
| Food Products | 2.1% | ||||||||
| Hostess Brands, Inc. (*) | 45,949 | 938,279 | ||||||
| Utz Brands, Inc. | 79,430 | 1,266,908 | ||||||
| 2,205,187 | ||||||||
| Gas Utilities | 1.8% | ||||||||
| New Jersey Resources Corp. | 45,592 | 1,872,008 | ||||||
| Health Care Equipment & Supplies | 1.6% | ||||||||
| Ortho Clinical Diagnostics Holdings PLC | 81,500 | 1,743,285 | ||||||
| Health Care Providers & Services | 1.1% | ||||||||
| Henry Schein, Inc. (*) | 15,499 | 1,201,638 | ||||||
| Health Care Technology | 0.8% | ||||||||
| Certara, Inc. (*) | 30,336 | 862,149 | ||||||
| Hotels, Restaurants & Leisure | 2.9% | ||||||||
| Brinker International, Inc. (*) | 31,072 | 1,136,925 | ||||||
| Wyndham Hotels & Resorts, Inc. | 21,308 | 1,910,262 | ||||||
| 3,047,187 | ||||||||
| Household Durables | 1.3% | ||||||||
| Leggett & Platt, Inc. | 32,381 | 1,332,802 | ||||||
The accompanying notes are an integral part of these financial statements.
144 Annual Report
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| Description | Shares | Value | ||||||
| Lazard US Small-Mid Cap Equity Portfolio (continued) | ||||||||
| Insurance | 2.9% | ||||||||
| Brown & Brown, Inc. | 24,025 | $ | 1,688,477 | |||||
| Reinsurance Group of America, Inc. | 12,557 | 1,374,866 | ||||||
| 3,063,343 | ||||||||
| Interactive Media & Services | 3.1% | ||||||||
| Cars.com, Inc. (*) | 77,726 | 1,250,611 | ||||||
| MediaAlpha, Inc., Class A (*) | 37,502 | 579,031 | ||||||
| Ziff Davis, Inc. (*) | 13,244 | 1,468,230 | ||||||
| 3,297,872 | ||||||||
| IT Services | 4.3% | ||||||||
| Amdocs, Ltd. | 18,123 | 1,356,325 | ||||||
| LiveRamp Holdings, Inc. (*) | 24,524 | 1,175,926 | ||||||
| Remitly Global, Inc. | 31,286 | 645,117 | ||||||
| SolarWinds Corp. | 47,210 | 669,910 | ||||||
| Squarespace, Inc., Class A (*) | 23,718 | 699,681 | ||||||
| 4,546,959 | ||||||||
| Leisure Products | 2.6% | ||||||||
| Brunswick Corp. | 9,614 | 968,418 | ||||||
| Hasbro, Inc. | 18,102 | 1,842,422 | ||||||
| 2,810,840 | ||||||||
| Life Sciences Tools & Services | 4.6% | ||||||||
| Adaptive Biotechnologies Corp. (*) | 39,980 | 1,121,839 | ||||||
| ICON PLC (*) | 5,587 | 1,730,294 | ||||||
| Sotera Health Co. (*) | 55,170 | 1,299,253 | ||||||
| Stevanato Group SpA | 33,698 | 756,520 | ||||||
| 4,907,906 | ||||||||
| Machinery | 3.3% | ||||||||
| Altra Industrial Motion Corp. | 12,151 | 626,627 | ||||||
| Columbus McKinnon Corp. | 28,787 | 1,331,687 | ||||||
| Gates Industrial Corp. PLC (*) | 95,646 | 1,521,728 | ||||||
| 3,480,042 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 145
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard US Small-Mid Cap Equity Portfolio (continued) | ||||||||
| Multiline Retail | 1.2% | ||||||||
| Kohl’s Corp. | 26,157 | $ | 1,291,894 | |||||
| Oil, Gas & Consumable Fuels | 2.1% | ||||||||
| Antero Resources Corp. (*) | 60,723 | 1,062,653 | ||||||
| Magnolia Oil & Gas Corp., Class A | 63,861 | 1,205,057 | ||||||
| 2,267,710 | ||||||||
| Paper & Forest Products | 1.5% | ||||||||
| Neenah, Inc. | 33,657 | 1,557,646 | ||||||
| Pharmaceuticals | 1.1% | ||||||||
| Catalent, Inc. (*) | 8,995 | 1,151,630 | ||||||
| Professional Services | 1.9% | ||||||||
| Leidos Holdings, Inc. | 11,757 | 1,045,197 | ||||||
| Sterling Check Corp. | 47,582 | 975,907 | ||||||
| 2,021,104 | ||||||||
| Semiconductors & Semiconductor Equipment | 2.5% | ||||||||
| CMC Materials, Inc. | 4,748 | 910,144 | ||||||
| MKS Instruments, Inc. | 10,172 | 1,771,657 | ||||||
| 2,681,801 | ||||||||
| Software | 4.9% | ||||||||
| CyberArk Software, Ltd. (*) | 4,257 | 737,653 | ||||||
| Dolby Laboratories, Inc., Class A | 16,515 | 1,572,558 | ||||||
| N-Able, Inc. (*) | 91,871 | 1,019,768 | ||||||
| Pegasystems, Inc. | 9,473 | 1,059,271 | ||||||
| PTC, Inc. (*) | 6,487 | 785,900 | ||||||
| 5,175,150 | ||||||||
| Specialty Retail | 2.2% | ||||||||
| Leslie’s, Inc. (*) | 66,454 | 1,572,302 | ||||||
| Urban Outfitters, Inc. (*) | 25,437 | 746,830 | ||||||
| 2,319,132 | ||||||||
The accompanying notes are an integral part of these financial statements.
146 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard US Small-Mid Cap Equity Portfolio (concluded) | ||||||||
| Textiles, Apparel & Luxury Goods | 0.9% | ||||||||
| Tapestry, Inc. | 24,220 | $ | 983,332 | |||||
| Total Common Stocks (Cost $80,618,091) | 103,497,038 | |||||||
| Total Investments | 97.6% (Cost $80,618,091) | $ | 103,497,038 | ||||||
| Cash and Other Assets in Excess of Liabilities | 2.4% | 2,535,412 | |||||||
| Net Assets | 100.0% | $ | 106,032,450 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 147
The accompanying notes are an integral part of these financial statements.
148 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard US Sustainable Equity Portfolio (continued) | ||||||||
| Entertainment | 1.3% | ||||||||
| The Walt Disney Co. (*) | 1,306 | $ | 202,286 | |||||
| Equity Real Estate Investment Trusts (REITs) | 2.5% | ||||||||
| Prologis, Inc. REIT | 2,296 | 386,555 | ||||||
| Food & Staples Retailing | 1.5% | ||||||||
| Sysco Corp. | 2,973 | 233,529 | ||||||
| Food Products | 0.3% | ||||||||
| Oatly Group AB ADR | 4,886 | 38,893 | ||||||
| Health Care Equipment & Supplies | 4.4% | ||||||||
| Boston Scientific Corp. (*) | 5,511 | 234,107 | ||||||
| Medtronic PLC | 4,194 | 433,870 | ||||||
| 667,977 | ||||||||
| Health Care Providers & Services | 5.4% | ||||||||
| Humana, Inc. | 446 | 206,882 | ||||||
| Laboratory Corp. of America Holdings (*) | 765 | 240,371 | ||||||
| UnitedHealth Group, Inc. | 768 | 385,643 | ||||||
| 832,896 | ||||||||
| Hotels, Restaurants & Leisure | 1.8% | ||||||||
| Starbucks Corp. | 2,377 | 278,038 | ||||||
| Household Products | 2.3% | ||||||||
| The Procter & Gamble Co. | 2,121 | 346,953 | ||||||
| IT Services | 6.8% | ||||||||
| Accenture PLC, Class A | 1,409 | 584,101 | ||||||
| Visa, Inc., Class A | 2,153 | 466,577 | ||||||
| 1,050,678 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 149
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard US Sustainable Equity Portfolio (continued) | ||||||||
| Life Sciences Tools & Services | 8.3% | ||||||||
| Agilent Technologies, Inc. | 1,406 | $ | 224,468 | |||||
| Danaher Corp. | 1,360 | 447,454 | ||||||
| IQVIA Holdings, Inc. (*) | 988 | 278,754 | ||||||
| Thermo Fisher Scientific, Inc. | 494 | 329,616 | ||||||
| 1,280,292 | ||||||||
| Machinery | 3.3% | ||||||||
| Deere & Co. | 791 | 271,226 | ||||||
| Watts Water Technologies, Inc., Class A | 696 | 135,143 | ||||||
| Xylem, Inc. | 860 | 103,131 | ||||||
| 509,500 | ||||||||
| Multiline Retail | 2.6% | ||||||||
| Dollar General Corp. | 1,677 | 395,487 | ||||||
| Pharmaceuticals | 4.6% | ||||||||
| Johnson & Johnson | 2,126 | 363,695 | ||||||
| Zoetis, Inc. | 1,431 | 349,207 | ||||||
| 712,902 | ||||||||
| Road & Rail | 2.4% | ||||||||
| Norfolk Southern Corp. | 1,233 | 367,076 | ||||||
| Semiconductors & Semiconductor Equipment | 5.6% | ||||||||
| Analog Devices, Inc. | 2,176 | 382,476 | ||||||
| Applied Materials, Inc. | 1,281 | 201,578 | ||||||
| Texas Instruments, Inc. | 1,433 | 270,077 | ||||||
| 854,131 | ||||||||
| Software | 14.4% | ||||||||
| Adobe, Inc. (*) | 273 | 154,807 | ||||||
| Intuit, Inc. | 420 | 270,152 | ||||||
| Microsoft Corp. | 3,977 | 1,337,545 | ||||||
| Palo Alto Networks, Inc. (*) | 247 | 137,520 | ||||||
| salesforce.com, Inc. (*) | 1,212 | 308,006 | ||||||
| 2,208,030 | ||||||||
The accompanying notes are an integral part of these financial statements.
150 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard US Sustainable Equity Portfolio (concluded) | ||||||||
| Specialty Retail | 5.4% | ||||||||
| Home Depot, Inc. | 1,581 | $ | 656,131 | |||||
| Ross Stores, Inc. | 1,479 | 169,020 | ||||||
| 825,151 | ||||||||
| Total Common Stocks (Cost $10,169,570) | 15,009,726 | |||||||
| Short-Term Investments | 2.6% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $393,320) | 393,320 | 393,320 | ||||||
| Total Investments | 100.4% (Cost $10,562,890) | $ | 15,403,046 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.4)% | (60,783 | ) | ||||||
| Net Assets l 100.0% | $ | 15,342,263 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 151
The accompanying notes are an integral part of these financial statements.
152 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Great Western Bancorp, Inc. | 224 | $ | 7,607 | |||||
| Guaranty Bancshares, Inc. | 89 | 3,345 | ||||||
| Hancock Whitney Corp. | 150 | 7,503 | ||||||
| Hilltop Holdings, Inc. | 330 | 11,596 | ||||||
| Macatawa Bank Corp. | 373 | 3,290 | ||||||
| Meta Financial Group, Inc. | 164 | 9,784 | ||||||
| Metrocity Bankshares, Inc. | 161 | 4,432 | ||||||
| Metropolitan Bank Holding Corp. (*) | 126 | 13,423 | ||||||
| National Bank Holdings Corp. Class A | 188 | 8,261 | ||||||
| PacWest Bancorp | 160 | 7,227 | ||||||
| PCB Bancorp | 338 | 7,423 | ||||||
| Peoples Financial Services Corp. | 72 | 3,794 | ||||||
| Popular, Inc. | 86 | 7,055 | ||||||
| Red River Bancshares, Inc. | 60 | 3,210 | ||||||
| ServisFirst Bancshares, Inc. | 114 | 9,683 | ||||||
| South Plains Financial, Inc. | 99 | 2,753 | ||||||
| The First Bancorp, Inc. | 66 | 2,072 | ||||||
| Umpqua Holdings Corp. | 432 | 8,312 | ||||||
| United Bankshares, Inc. | 197 | 7,147 | ||||||
| United Community Banks, Inc. | 170 | 6,110 | ||||||
| Washington Trust Bancorp, Inc. | 141 | 7,948 | ||||||
| West BanCorp, Inc. | 97 | 3,014 | ||||||
| Western Alliance Bancorp | 104 | 11,196 | ||||||
| 254,912 | ||||||||
| Beverages | 0.3% | ||||||||
| Coca-Cola Consolidated, Inc. | 10 | 6,192 | ||||||
| National Beverage Corp. | 160 | 7,253 | ||||||
| 13,445 | ||||||||
| Biotechnology | 8.3% | ||||||||
| ACADIA Pharmaceuticals, Inc. (*) | 429 | 10,013 | ||||||
| ADMA Biologics, Inc. (*) | 5,931 | 8,363 | ||||||
| Alector, Inc. (*) | 366 | 7,558 | ||||||
| Amicus Therapeutics, Inc. (*) | 785 | 9,067 | ||||||
| AnaptysBio, Inc. (*) | 252 | 8,757 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 153
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Biohaven Pharmaceutical Holding Co., Ltd. (*) | 74 | $ | 10,198 | |||||
| Bluebird Bio, Inc. (*) | 806 | 8,052 | ||||||
| CareDx, Inc. (*) | 388 | 17,646 | ||||||
| Celularity, Inc. (*) | 1,505 | 7,706 | ||||||
| ChemoCentryx, Inc. (*) | 238 | 8,666 | ||||||
| Eagle Pharmaceuticals, Inc. (*) | 248 | 12,628 | ||||||
| Exelixis, Inc. (*) | 177 | 3,236 | ||||||
| FibroGen, Inc. (*) | 659 | 9,292 | ||||||
| Fortress Biotech, Inc. (*) | 3,447 | 8,617 | ||||||
| Global Blood Therapeutics, Inc. (*) | 259 | 7,581 | ||||||
| Halozyme Therapeutics, Inc. (*) | 319 | 12,827 | ||||||
| Insmed, Inc. (*) | 294 | 8,008 | ||||||
| iTeos Therapeutics, Inc. (*) | 452 | 21,045 | ||||||
| Kymera Therapeutics, Inc. (*) | 148 | 9,396 | ||||||
| Lineage Cell Therapeutics, Inc. (*) | 3,753 | 9,195 | ||||||
| MEI Pharma, Inc. (*) | 2,952 | 7,882 | ||||||
| Myovant Sciences, Ltd. (*) | 412 | 6,415 | ||||||
| Natera, Inc. (*) | 67 | 6,257 | ||||||
| Oyster Point Pharma, Inc. (*) | 660 | 12,052 | ||||||
| Prothena Corp. PLC (*) | 158 | 7,805 | ||||||
| PTC Therapeutics, Inc. (*) | 224 | 8,922 | ||||||
| Sarepta Therapeutics, Inc. (*) | 75 | 6,754 | ||||||
| Selecta Biosciences, Inc. (*) | 2,521 | 8,218 | ||||||
| Seres Therapeutics, Inc. (*) | 1,188 | 9,896 | ||||||
| Surface Oncology, Inc. (*) | 1,490 | 7,122 | ||||||
| Syndax Pharmaceuticals, Inc. (*) | 521 | 11,405 | ||||||
| Travere Therapeutics, Inc. (*) | 608 | 18,872 | ||||||
| Twist Bioscience Corp. (*) | 76 | 5,882 | ||||||
| United Therapeutics Corp. (*) | 44 | 9,507 | ||||||
| Vanda Pharmaceuticals, Inc. (*) | 16 | 251 | ||||||
| Veracyte, Inc. (*) | 192 | 7,910 | ||||||
| Vericel Corp. (*) | 216 | 8,489 | ||||||
| 341,490 | ||||||||
The accompanying notes are an integral part of these financial statements.
154 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Building Products | 2.8% | ||||||||
| A O Smith Corp. | 112 | $ | 9,615 | |||||
| Apogee Enterprises, Inc. | 84 | 4,045 | ||||||
| Builders FirstSource, Inc. (*) | 243 | 20,828 | ||||||
| CSW Industrials, Inc. | 89 | 10,757 | ||||||
| Insteel Industries, Inc. | 430 | 17,118 | ||||||
| Owens Corning | 131 | 11,855 | ||||||
| Quanex Building Products Corp. | 546 | 13,530 | ||||||
| Simpson Manufacturing Co., Inc. | 60 | 8,344 | ||||||
| UFP Industries, Inc. | 185 | 17,022 | ||||||
| 113,114 | ||||||||
| Capital Markets | 1.1% | ||||||||
| Artisan Partners Asset Management, Inc., Class A | 69 | 3,287 | ||||||
| Cboe Global Markets, Inc. | 52 | 6,781 | ||||||
| CI Financial Corp. | 59 | 1,233 | ||||||
| Janus Henderson Group PLC | 178 | 7,465 | ||||||
| Open Lending Corp. Class A (*) | 283 | 6,362 | ||||||
| Oppenheimer Holdings, Inc. Class A | 141 | 6,538 | ||||||
| PennantPark Floating Rate Capital, Ltd. | 628 | 8,020 | ||||||
| Value Line, Inc. | 90 | 4,214 | ||||||
| 43,900 | ||||||||
| Chemicals | 3.9% | ||||||||
| AdvanSix, Inc. | 489 | 23,105 | ||||||
| CF Industries Holdings, Inc. | 205 | 14,510 | ||||||
| Hawkins, Inc. | 435 | 17,161 | ||||||
| Huntsman Corp. | 262 | 9,139 | ||||||
| Ingevity Corp. (*) | 110 | 7,887 | ||||||
| Kraton Corp. (*) | 190 | 8,801 | ||||||
| Olin Corp. | 367 | 21,110 | ||||||
| Orion Engineered Carbons SA (*) | 669 | 12,283 | ||||||
| Stepan Co. | 47 | 5,842 | ||||||
| The Chemours Co. | 281 | 9,430 | ||||||
| Tredegar Corp. | 464 | 5,484 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 155
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Valhi, Inc. | 87 | $ | 2,501 | |||||
| Valvoline, Inc. | 255 | 9,509 | ||||||
| Westlake Chemical Corp. | 116 | 11,267 | ||||||
| 158,029 | ||||||||
| Commercial Services & Supplies | 1.0% | ||||||||
| Brady Corp. Class A | 182 | 9,810 | ||||||
| MillerKnoll, Inc. | 171 | 6,701 | ||||||
| NL Industries, Inc. | 130 | 962 | ||||||
| Tetra Tech, Inc. | 73 | 12,395 | ||||||
| VSE Corp. | 158 | 9,629 | ||||||
| 39,497 | ||||||||
| Communications Equipment | 1.4% | ||||||||
| Clearfield, Inc. (*) | 336 | 28,365 | ||||||
| Digi International, Inc. (*) | 389 | 9,558 | ||||||
| Ituran Location and Control, Ltd. | 508 | 13,548 | ||||||
| Juniper Networks, Inc. | 133 | 4,750 | ||||||
| 56,221 | ||||||||
| Construction & Engineering | 0.7% | ||||||||
| Argan, Inc. | 167 | 6,461 | ||||||
| IES Holdings, Inc. (*) | 262 | 13,268 | ||||||
| Sterling Construction Co., Inc. (*) | 342 | 8,994 | ||||||
| 28,723 | ||||||||
| Construction Materials | 1.2% | ||||||||
| Eagle Materials, Inc. | 141 | 23,471 | ||||||
| Forterra, Inc. (*) | 329 | 7,824 | ||||||
| Summit Materials, Inc. Class A (*) | 248 | 9,955 | ||||||
| United States Lime & Minerals, Inc. | 73 | 9,418 | ||||||
| 50,668 | ||||||||
The accompanying notes are an integral part of these financial statements.
156 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Consumer Finance | 0.6% | ||||||||
| Navient Corp. | 572 | $ | 12,138 | |||||
| OneMain Holdings, Inc. | 217 | 10,858 | ||||||
| 22,996 | ||||||||
| Containers & Packaging | 0.4% | ||||||||
| Greif, Inc. Class A | 284 | 17,145 | ||||||
| Distributors | 0.2% | ||||||||
| Funko, Inc. Class A (*) | 463 | 8,704 | ||||||
| Diversified Consumer Services | 0.2% | ||||||||
| Service Corp. International | 126 | 8,945 | ||||||
| Diversified Telecommunication Services | 0.2% | ||||||||
| Ooma, Inc. (*) | 389 | 7,951 | ||||||
| Electric Utilities | 0.2% | ||||||||
| Hawaiian Electric Industries, Inc. | 225 | 9,337 | ||||||
| Electrical Equipment | 1.5% | ||||||||
| Allied Motion Technologies, Inc. | 179 | 6,532 | ||||||
| Atkore, Inc. (*) | 173 | 19,236 | ||||||
| Encore Wire Corp. | 64 | 9,158 | ||||||
| GrafTech International, Ltd. | 1,087 | 12,859 | ||||||
| nVent Electric PLC | 345 | 13,110 | ||||||
| 60,895 | ||||||||
| Electronic Equipment, Instruments & Components | 1.7% | ||||||||
| Arrow Electronics, Inc. (*) | 67 | 8,996 | ||||||
| Belden, Inc. | 198 | 13,015 | ||||||
| Kimball Electronics, Inc. (*) | 530 | 11,533 | ||||||
| National Instruments Corp. | 203 | 8,865 | ||||||
| ScanSource, Inc. (*) | 244 | 8,560 | ||||||
| TD SYNNEX Corp. | 81 | 9,263 | ||||||
| Vishay Intertechnology, Inc. | 450 | 9,841 | ||||||
| 70,073 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 157
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Energy Equipment & Services | 0.2% | ||||||||
| Cactus, Inc., Class A | 245 | $ | 9,342 | |||||
| Entertainment | 0.5% | ||||||||
| Liberty Media Corp-Liberty Braves Class C (*) | 325 | 9,132 | ||||||
| Sciplay Corp. Class A (*) | 691 | 9,522 | ||||||
| 18,654 | ||||||||
| Equity Real Estate Investment Trusts (REITs) | 4.4% | ||||||||
| American Assets Trust, Inc. | 197 | 7,393 | ||||||
| Brixmor Property Group, Inc. REIT | 325 | 8,258 | ||||||
| CorePoint Lodging, Inc. (*) | 534 | 8,384 | ||||||
| CTO Realty Growth, Inc. | 140 | 8,599 | ||||||
| Douglas Emmett, Inc. | 241 | 8,074 | ||||||
| EastGroup Properties, Inc. REIT | 34 | 7,747 | ||||||
| Federal Realty Investment Trust REIT | 60 | 8,179 | ||||||
| Global Medical REIT, Inc. | 482 | 8,555 | ||||||
| Healthcare Trust of America, Inc., Class A REIT | 188 | 6,277 | ||||||
| Industrial Logistics Properties Trust | 326 | 8,166 | ||||||
| JBG SMITH Properties | 283 | 8,125 | ||||||
| Kimco Realty Corp. REIT | 323 | 7,962 | ||||||
| Kite Realty Group Trust | 289 | 6,294 | ||||||
| Life Storage, Inc. REIT | 80 | 12,254 | ||||||
| MGM Growth Properties LLC, Class A REIT | 202 | 8,252 | ||||||
| National Storage Affiliates Trust | 154 | 10,657 | ||||||
| Plymouth Industrial REIT, Inc. | 381 | 12,192 | ||||||
| Postal Realty Trust, Inc. Class A | 356 | 7,049 | ||||||
| PotlatchDeltic Corp. | 103 | 6,203 | ||||||
| Terreno Realty Corp. | 83 | 7,079 | ||||||
| UMH Properties, Inc. | 382 | 10,440 | ||||||
| Universal Health Realty Income Trust | 99 | 5,888 | ||||||
| 182,027 | ||||||||
| Food & Staples Retailing | 1.3% | ||||||||
| Albertsons Cos., Inc. Class A | 437 | 13,193 | ||||||
| HF Foods Group, Inc. (*) | 1,022 | 8,646 | ||||||
The accompanying notes are an integral part of these financial statements.
158 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Ingles Markets, Inc. Class A | 263 | $ | 22,707 | |||||
| United Natural Foods, Inc. (*) | 173 | 8,491 | ||||||
| 53,037 | ||||||||
| Food Products | 2.5% | ||||||||
| Adecoagro SA (*) | 1,507 | 11,574 | ||||||
| Calavo Growers, Inc. | 206 | 8,734 | ||||||
| Flowers Foods, Inc. | 256 | 7,032 | ||||||
| Ingredion, Inc. | 95 | 9,181 | ||||||
| Landec Corp. (*) | 902 | 10,012 | ||||||
| Mission Produce, Inc. (*) | 609 | 9,561 | ||||||
| Pilgrim’s Pride Corp. (*) | 340 | 9,588 | ||||||
| Post Holdings, Inc. (*) | 89 | 10,033 | ||||||
| Sanderson Farms, Inc. | 95 | 18,153 | ||||||
| Seaboard Corp. | 1 | 3,935 | ||||||
| Seneca Foods Corp. Class A (*) | 69 | 3,309 | ||||||
| 101,112 | ||||||||
| Gas Utilities | 0.6% | ||||||||
| Chesapeake Utilities Corp. | 71 | 10,353 | ||||||
| UGI Corp. | 307 | 14,094 | ||||||
| 24,447 | ||||||||
| Health Care Equipment & Supplies | 5.1% | ||||||||
| AngioDynamics, Inc. (*) | 315 | 8,688 | ||||||
| Apollo Endosurgery, Inc. (*) | 939 | 7,916 | ||||||
| Apyx Medical Corp. (*) | 478 | 6,128 | ||||||
| Axogen, Inc. (*) | 368 | 3,448 | ||||||
| Axonics, Inc. (*) | 135 | 7,560 | ||||||
| Cerus Corp. (*) | 1,218 | 8,295 | ||||||
| Co-Diagnostics, Inc. (*) | 1,264 | 11,287 | ||||||
| Cutera, Inc. (*) | 222 | 9,173 | ||||||
| Envista Holdings Corp. (*) | 211 | 9,508 | ||||||
| Globus Medical, Inc., Class A (*) | 98 | 7,076 | ||||||
| Inari Medical, Inc. (*) | 99 | 9,036 | ||||||
| Inmode, Ltd. (*) | 212 | 14,963 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 159
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| iRadimed Corp. (*) | 215 | $ | 9,935 | |||||
| LeMaitre Vascular, Inc. | 169 | 8,489 | ||||||
| Masimo Corp. (*) | 35 | 10,247 | ||||||
| Meridian Bioscience, Inc. (*) | 556 | 11,342 | ||||||
| Nevro Corp. (*) | 59 | 4,783 | ||||||
| NuVasive, Inc. (*) | 162 | 8,502 | ||||||
| OraSure Technologies, Inc. (*) | 824 | 7,161 | ||||||
| Orthofix Medical, Inc. (*) | 269 | 8,363 | ||||||
| Quidel Corp. (*) | 64 | 8,639 | ||||||
| Sanara Medtech, Inc. (*) | 127 | 3,863 | ||||||
| Shockwave Medical, Inc. (*) | 41 | 7,311 | ||||||
| Tactile Systems Technology, Inc. (*) | 236 | 4,491 | ||||||
| Tandem Diabetes Care, Inc. (*) | 78 | 11,741 | ||||||
| 207,945 | ||||||||
| Health Care Providers & Services | 1.4% | ||||||||
| Cross Country Healthcare, Inc. (*) | 879 | 24,401 | ||||||
| National HealthCare Corp. | 123 | 8,357 | ||||||
| Select Medical Holdings Corp. | 231 | 6,791 | ||||||
| Triple-S Management Corp. (*) | 495 | 17,662 | ||||||
| 57,211 | ||||||||
| Health Care Technology | 0.7% | ||||||||
| Computer Programs and Systems, Inc. (*) | 237 | 6,944 | ||||||
| HealthStream, Inc. (*) | 138 | 3,638 | ||||||
| NextGen Healthcare, Inc. (*) | 545 | 9,695 | ||||||
| Omnicell, Inc. (*) | 47 | 8,481 | ||||||
| 28,758 | ||||||||
| Hotels, Restaurants & Leisure | 1.3% | ||||||||
| Century Casinos, Inc. (*) | 799 | 9,732 | ||||||
| Jack in the Box, Inc. | 113 | 9,885 | ||||||
| RCI Hospitality Holdings, Inc. | 127 | 9,891 | ||||||
The accompanying notes are an integral part of these financial statements.
160 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Ruth’s Hospitality Group, Inc. (*) | 403 | $ | 8,020 | |||||
| The Wendy’s Co. | 347 | 8,276 | ||||||
| Wyndham Hotels & Resorts, Inc. | 99 | 8,875 | ||||||
| 54,679 | ||||||||
| Household Durables | 2.0% | ||||||||
| Bassett Furniture Industries, Inc. | 265 | 4,444 | ||||||
| Century Communities, Inc. | 129 | 10,551 | ||||||
| Ethan Allen Interiors, Inc. | 300 | 7,887 | ||||||
| Legacy Housing Corp. (*) | 479 | 12,679 | ||||||
| M/I Homes, Inc. (*) | 245 | 15,234 | ||||||
| Meritage Homes Corp. (*) | 125 | 15,258 | ||||||
| Tri Pointe Homes, Inc. (*) | 560 | 15,618 | ||||||
| 81,671 | ||||||||
| Household Products | 0.4% | ||||||||
| Central Garden & Pet Co., Class A (*) | 164 | 7,848 | ||||||
| Energizer Holdings, Inc. | 153 | 6,135 | ||||||
| Oil-Dri Corp. of America | 70 | 2,291 | ||||||
| 16,274 | ||||||||
| Independent Power & Renewable Electricity Producers | 0.4% | ||||||||
| Azure Power Global, Ltd. (*) | 490 | 8,893 | ||||||
| TransAlta Corp. | 846 | 9,408 | ||||||
| 18,301 | ||||||||
| Insurance | 0.8% | ||||||||
| Investors Title Co. | 34 | 6,703 | ||||||
| Stewart Information Services Corp. | 217 | 17,301 | ||||||
| The Hanover Insurance Group, Inc. | 58 | 7,602 | ||||||
| 31,606 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 161
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Interactive Media & Services | 0.7% | ||||||||
| Cargurus, Inc. (*) | 365 | $ | 12,279 | |||||
| QuinStreet, Inc. (*) | 437 | 7,949 | ||||||
| Yelp, Inc. (*) | 234 | 8,480 | ||||||
| 28,708 | ||||||||
| Internet & Direct Marketing Retail | 0.5% | ||||||||
| Betterware de Mexico S.A.B. de C.V. | 149 | 3,123 | ||||||
| Liquidity Services, Inc. (*) | 829 | 18,304 | ||||||
| 21,427 | ||||||||
| IT Services | 2.4% | ||||||||
| CSG Systems International, Inc. | 243 | 14,002 | ||||||
| EVERTEC, Inc. | 244 | 12,195 | ||||||
| Exlservice Holdings, Inc. (*) | 87 | 12,595 | ||||||
| Grid Dynamics Holdings, Inc. (*) | 243 | 9,227 | ||||||
| I3 Verticals, Inc. Class A (*) | 474 | 10,803 | ||||||
| Information Services Group, Inc. | 1,973 | 15,034 | ||||||
| Perficient, Inc. (*) | 70 | 9,050 | ||||||
| Remitly Global, Inc. | 297 | 6,124 | ||||||
| TTEC Holdings, Inc. | 122 | 11,047 | ||||||
| 100,077 | ||||||||
| Leisure Products | 1.3% | ||||||||
| Malibu Boats, Inc. Class A (*) | 174 | 11,959 | ||||||
| Marine Products Corp. | 319 | 3,987 | ||||||
| MasterCraft Boat Holdings, Inc. (*) | 314 | 8,896 | ||||||
| Smith & Wesson Brands, Inc. | 589 | 10,484 | ||||||
| Vista Outdoor, Inc. (*) | 436 | 20,087 | ||||||
| 55,413 | ||||||||
| Life Sciences Tools & Services | 0.3% | ||||||||
| Bruker Corp. | 149 | 12,503 | ||||||
The accompanying notes are an integral part of these financial statements.
162 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Machinery | 2.4% | ||||||||
| AGCO Corp. | 91 | $ | 10,558 | |||||
| Allison Transmission Holdings, Inc. | 375 | 13,631 | ||||||
| Donaldson Co., Inc. | 153 | 9,067 | ||||||
| EnPro Industries, Inc. | 87 | 9,576 | ||||||
| Franklin Electric Co., Inc. | 99 | 9,362 | ||||||
| Gates Industrial Corp. PLC (*) | 541 | 8,607 | ||||||
| Hillenbrand, Inc. | 270 | 14,037 | ||||||
| Mueller Industries, Inc. | 253 | 15,018 | ||||||
| Pentair PLC | 128 | 9,348 | ||||||
| 99,204 | ||||||||
| Marine | 2.7% | ||||||||
| Costamare, Inc. | 667 | 8,438 | ||||||
| Diana Shipping, Inc. | 2,152 | 8,371 | ||||||
| Eagle Bulk Shipping, Inc. | 384 | 17,472 | ||||||
| Genco Shipping & Trading, Ltd. | 570 | 9,120 | ||||||
| Global Ship Lease, Inc. Class A | 357 | 8,179 | ||||||
| Grindrod Shipping Holdings, Ltd. | 992 | 17,886 | ||||||
| Matson, Inc. | 144 | 12,964 | ||||||
| Star Bulk Carriers Corp. | 434 | 9,839 | ||||||
| ZIM Integrated Shipping Services, Ltd. | 326 | 19,188 | ||||||
| 111,457 | ||||||||
| Media | 2.1% | ||||||||
| Altice USA, Inc., Class A (*) | 525 | 8,495 | ||||||
| Entravision Communications Corp., Class A | 3,246 | 22,008 | ||||||
| Nexstar Media Group, Inc., Class A | 88 | 13,286 | ||||||
| Scholastic Corp. | 240 | 9,590 | ||||||
| The EW Scripps Co. Class A | 518 | 10,023 | ||||||
| Thryv Holdings, Inc. (*) | 258 | 10,612 | ||||||
| WideOpenWest, Inc. (*) | 471 | 10,136 | ||||||
| 84,150 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 163
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Multiline Retail | 0.4% | ||||||||
| Franchise Group, Inc. | 210 | $ | 10,953 | |||||
| Kohl’s Corp. | 140 | 6,915 | ||||||
| 17,868 | ||||||||
| Oil, Gas & Consumable Fuels | 1.2% | ||||||||
| Antero Midstream Corp. | 953 | 9,225 | ||||||
| Brigham Minerals, Inc. Class A | 388 | 8,183 | ||||||
| Enerplus Corp. | 888 | 9,395 | ||||||
| Flex LNG, Ltd. (*) | 221 | 5,191 | ||||||
| Sabine Royalty Trust | 96 | 4,001 | ||||||
| San Juan Basin Royalty Trust | 1,499 | 9,129 | ||||||
| World Fuel Services Corp. | 146 | 3,865 | ||||||
| 48,989 | ||||||||
| Paper & Forest Products | 1.7% | ||||||||
| Louisiana-Pacific Corp. | 249 | 19,509 | ||||||
| Mercer International, Inc. | 848 | 10,168 | ||||||
| Resolute Forest Products, Inc. | 1,626 | 24,829 | ||||||
| Verso Corp. Class A | 599 | 16,185 | ||||||
| 70,691 | ||||||||
| Personal Products | 1.1% | ||||||||
| BellRing Brands, Inc. Class A (*) | 315 | 8,987 | ||||||
| Herbalife Nutrition, Ltd. (*) | 104 | 4,257 | ||||||
| Inter Parfums, Inc. | 102 | 10,904 | ||||||
| Medifast, Inc. | 44 | 9,215 | ||||||
| USANA Health Sciences, Inc. (*) | 97 | 9,816 | ||||||
| 43,179 | ||||||||
| Pharmaceuticals | 0.9% | ||||||||
| Atea Pharmaceuticals, Inc. (*) | 799 | 7,143 | ||||||
| BioDelivery Sciences International, Inc. (*) | 1,934 | 5,995 | ||||||
| Corcept Therapeutics, Inc. (*) | 335 | 6,633 | ||||||
| Phibro Animal Health Corp., Class A | 369 | 7,535 | ||||||
| Supernus Pharmaceuticals, Inc. (*) | 274 | 7,990 | ||||||
| 35,296 | ||||||||
The accompanying notes are an integral part of these financial statements.
164 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Professional Services | 3.1% | ||||||||
| CBIZ, Inc. (*) | 234 | $ | 9,154 | |||||
| CRA International, Inc. | 241 | 22,500 | ||||||
| FTI Consulting, Inc. (*) | 103 | 15,802 | ||||||
| HireQuest, Inc. | 276 | 5,564 | ||||||
| HireRight Holdings Corp. | 499 | 7,984 | ||||||
| Kelly Services, Inc. Class A | 542 | 9,089 | ||||||
| Kforce, Inc. | 241 | 18,128 | ||||||
| ManpowerGroup, Inc. | 82 | 7,981 | ||||||
| Resources Connection, Inc. | 911 | 16,252 | ||||||
| Science Applications International Corp. | 86 | 7,189 | ||||||
| TriNet Group, Inc. (*) | 84 | 8,002 | ||||||
| 127,645 | ||||||||
| Real Estate Management & Development | 0.8% | ||||||||
| Douglas Elliman, Inc. | 304 | 3,496 | ||||||
| Forestar Group, Inc. (*) | 282 | 6,134 | ||||||
| FRP Holdings, Inc. (*) | 124 | 7,167 | ||||||
| Jones Lang LaSalle, Inc. (*) | 24 | 6,464 | ||||||
| The RMR Group, Inc. Class A | 241 | 8,358 | ||||||
| 31,619 | ||||||||
| Road & Rail | 0.5% | ||||||||
| AMERCO | 20 | 14,524 | ||||||
| PAM Transportation Services, Inc. (*) | 73 | 5,184 | ||||||
| 19,708 | ||||||||
| Semiconductors & Semiconductor Equipment | 3.2% | ||||||||
| Alpha & Omega Semiconductor, Ltd. (*) | 229 | 13,868 | ||||||
| Axcelis Technologies, Inc. (*) | 377 | 28,109 | ||||||
| Diodes, Inc. (*) | 96 | 10,542 | ||||||
| Kulicke & Soffa Industries, Inc. | 111 | 6,720 | ||||||
| Nova, Ltd. (*) | 95 | 13,918 | ||||||
| Onto Innovation, Inc. (*) | 100 | 10,123 | ||||||
| Semtech Corp. (*) | 100 | 8,893 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 165
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| SMART Global Holdings, Inc. (*) | 177 | $ | 12,565 | |||||
| Ultra Clean Holdings, Inc. (*) | 448 | 25,697 | ||||||
| 130,435 | ||||||||
| Software | 9.0% | ||||||||
| A10 Networks, Inc. | 654 | 10,843 | ||||||
| Absolute Software Corp. | 539 | 5,072 | ||||||
| Alarm.com Holdings, Inc. (*) | 81 | 6,870 | ||||||
| Allot, Ltd. (*) | 762 | 9,053 | ||||||
| American Software, Inc. Class A | 529 | 13,844 | ||||||
| Anaplan, Inc. (*) | 210 | 9,628 | ||||||
| AvidXchange Holdings, Inc. | 516 | 7,771 | ||||||
| Blackbaud, Inc. (*) | 115 | 9,083 | ||||||
| Blackline, Inc. (*) | 69 | 7,144 | ||||||
| Box, Inc., Class A (*) | 337 | 8,826 | ||||||
| Cerence, Inc. (*) | 116 | 8,890 | ||||||
| ChannelAdvisor Corp. (*) | 477 | 11,772 | ||||||
| Datto Holding Corp. (*) | 494 | 13,017 | ||||||
| Digital Turbine, Inc. (*) | 134 | 8,173 | ||||||
| Docebo, Inc. (*) | 167 | 11,249 | ||||||
| Dolby Laboratories, Inc., Class A | 141 | 13,426 | ||||||
| Domo, Inc. Class B (*) | 88 | 4,365 | ||||||
| Envestnet, Inc. (*) | 108 | 8,569 | ||||||
| Hut 8 Mining Corp. (*) | 636 | 4,993 | ||||||
| InterDigital, Inc. | 90 | 6,447 | ||||||
| Jamf Holding Corp. (*) | 281 | 10,681 | ||||||
| JFrog, Ltd. (*) | 222 | 6,593 | ||||||
| Magic Software Enterprises, Ltd. | 581 | 12,160 | ||||||
| Mimecast, Ltd. (*) | 142 | 11,299 | ||||||
| nCino, Inc. (*) | 177 | 9,710 | ||||||
| PagerDuty, Inc. (*) | 261 | 9,070 | ||||||
| Progress Software Corp. | 252 | 12,164 | ||||||
| Q2 Holdings, Inc. (*) | 108 | 8,579 | ||||||
| Qualys, Inc. (*) | 65 | 8,919 | ||||||
| Rapid7, Inc. (*) | 152 | 17,889 | ||||||
| SEMrush Holdings, Inc. Class A | 467 | 9,737 | ||||||
The accompanying notes are an integral part of these financial statements.
166 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Smartsheet, Inc. Class A (*) | 128 | $ | 9,914 | |||||
| Sprout Social, Inc. Class A (*) | 127 | 11,518 | ||||||
| SPS Commerce, Inc. (*) | 121 | 17,224 | ||||||
| Tenable Holdings, Inc. (*) | 278 | 15,309 | ||||||
| The Descartes Systems Group, Inc. (*) | 137 | 11,327 | ||||||
| Veritone, Inc. (*) | 344 | 7,733 | ||||||
| 368,861 | ||||||||
| Specialty Retail | 3.6% | ||||||||
| America’s Car-Mart, Inc. (*) | 86 | 8,806 | ||||||
| Arhaus, Inc. | 821 | 10,878 | ||||||
| Boot Barn Holdings, Inc. (*) | 80 | 9,844 | ||||||
| Floor & Decor Holdings, Inc., Class A (*) | 74 | 9,621 | ||||||
| Group 1 Automotive, Inc. | 49 | 9,566 | ||||||
| MarineMax, Inc. (*) | 242 | 14,288 | ||||||
| Murphy USA, Inc. | 58 | 11,556 | ||||||
| OneWater Marine, Inc. Class A | 307 | 18,718 | ||||||
| Penske Automotive Group, Inc. | 90 | 9,650 | ||||||
| Rent-A-Center, Inc. | 205 | 9,848 | ||||||
| Sleep Number Corp. (*) | 147 | 11,260 | ||||||
| The Cato Corp. Class A | 810 | 13,899 | ||||||
| Zumiez, Inc. (*) | 183 | 8,782 | ||||||
| 146,716 | ||||||||
| Technology Hardware, Storage & Peripherals | 0.3% | ||||||||
| Super Micro Computer, Inc. (*) | 309 | 13,581 | ||||||
| Textiles, Apparel & Luxury Goods | 1.8% | ||||||||
| Crocs, Inc. (*) | 138 | 17,694 | ||||||
| Deckers Outdoor Corp. (*) | 20 | 7,326 | ||||||
| Movado Group, Inc. | 472 | 19,744 | ||||||
| Superior Group of Cos., Inc. | 442 | 9,698 | ||||||
| Unifi, Inc. (*) | 549 | 12,709 | ||||||
| Vera Bradley, Inc. (*) | 672 | 5,719 | ||||||
| 72,890 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 167
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Thrifts & Mortgage Finance | 0.6% | ||||||||
| Bridgewater Bancshares, Inc. (*) | 531 | $ | 9,393 | |||||
| Walker & Dunlop, Inc. | 61 | 9,204 | ||||||
| WSFS Financial Corp. | 143 | 7,167 | ||||||
| 25,764 | ||||||||
| Tobacco | 0.3% | ||||||||
| Universal Corp. | 95 | 5,217 | ||||||
| Vector Group, Ltd. | 608 | 6,980 | ||||||
| 12,197 | ||||||||
| Trading Companies & Distributors | 2.0% | ||||||||
| BlueLinx Holdings, Inc. (*) | 139 | 13,311 | ||||||
| Boise Cascade Co. | 202 | 14,382 | ||||||
| GMS, Inc. (*) | 260 | 15,628 | ||||||
| Textainer Group Holdings, Ltd. | 289 | 10,320 | ||||||
| Titan Machinery, Inc. (*) | 465 | 15,666 | ||||||
| Triton International, Ltd. | 225 | 13,552 | ||||||
| 82,859 | ||||||||
| Water Utilities | 0.0% | ||||||||
| Global Water Resources, Inc. | 111 | 1,898 | ||||||
| Wireless Telecommunication Services | 0.2% | ||||||||
| Shenandoah Telecommunications Co. | 304 | 7,752 | ||||||
| Total Common Stocks (Cost $3,990,326) | 4,052,353 | |||||||
The accompanying notes are an integral part of these financial statements.
168 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (concluded) | ||||||||
| Rights | 0.0% | ||||||||
| Biotechnology | 0.0% | ||||||||
| Adamas Pharmaceuticals, Inc. CVR | ||||||||
| Expires 2024 (¢) | 1,139 | $ | 0 | |||||
| Expires 2025 (¢) | 1,139 | 0 | ||||||
| Total Rights (Cost $137) | 0 | |||||||
| Short-Term Investments | 3.2% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $130,048) | 130,048 | 130,048 | ||||||
| Total Investments | 102.0% (Cost $4,120,511) | $ | 4,182,401 | ||||||
| Liabilities in Excess of Cash and Other Assets | (2.0)% | (80,040 | ) | ||||||
| Net Assets | 100.0% | $ | 4,102,361 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 169
The Lazard Funds, Inc. Notes to Portfolios of Investments
December 31, 2021
| (*) | Non-income producing security. |
| (‡) | Security valued using Level 2 inputs, based on reference to a similar security which was trading on an active market, under GAAP hierarchy - see Note 9 in the Notes to Financial Statements. |
| (#) | Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2021, these securities amounted to 1.2% of net assets of Lazard Emerging Markets Equity Advantage Portfolio. |
| (^) | Refer to Note 5 in the Notes to Financial Statements for further details related to holdings of 5% voting securities of portfolio companies. |
| (») | The portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts. |
| (¢) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
Security Abbreviations:
| ADR | — | American Depositary Receipt | ||
| CVR | — | Contingent Value Rights | ||
| GDR | — | Global Depositary Receipt | ||
| NVDR | — | Non-Voting Depositary Receipt | ||
| PJSC | — | Public Joint Stock Company | ||
| REIT | — | Real Estate Investment Trust |
Currency Abbreviations:
| AUD | — | Australian Dollar | ||
| CAD | — | Canadian Dollar | ||
| CHF | — | Swiss Franc | ||
| EUR | — | Euro |
| GBP | — | British Pound Sterling | ||
| HKD | — | Hong-Kong Dollar | ||
| USD | — | United States Dollar |
Counterparty Abbreviations:
| BNP | — | BNP Paribas SA | ||
| CAN | — | Canadian Imperial Bank of Commerce | ||
| CIT | — | Citibank NA | ||
| HSB | — | HSBC Bank USA NA |
| MEL | — | The Bank of New York Mellon Corp. | ||
| MSC | — | Morgan Stanley & Co. | ||
| RBC | — | Royal Bank of Canada | ||
| SCB | — | Standard Chartered Bank | ||
| SSB | — | State Street Bank and Trust Co. |
The accompanying notes are an integral part of these financial statements.
170 Annual Report
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Annual Report 171
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country:
| Industry† | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio |
|||||||||||||
| Common & Preferred Stocks | |||||||||||||||||
| Aerospace & Defense | — | % | — | % | — | % | — | % | |||||||||
| Air Freight & Logistics | 1.8 | — | — | — | |||||||||||||
| Airlines | — | — | 0.2 | — | |||||||||||||
| Auto Components | 3.4 | 0.7 | 0.4 | 2.1 | |||||||||||||
| Automobiles | 0.8 | 1.9 | 3.3 | 2.2 | |||||||||||||
| Banks | 23.2 | 12.2 | 13.9 | 22.0 | |||||||||||||
| Beverages | 2.5 | 1.8 | 1.3 | — | |||||||||||||
| Biotechnology | — | 1.2 | 0.7 | — | |||||||||||||
| Building Products | — | — | 0.3 | — | |||||||||||||
| Capital Markets | — | 0.8 | 1.2 | — | |||||||||||||
| Chemicals | 1.3 | 2.5 | 3.7 | 1.1 | |||||||||||||
| Commercial Services & Suppliers | — | — | 0.3 | — | |||||||||||||
| Communications Equipment | — | 0.6 | — | — | |||||||||||||
| Construction & Engineering | — | 1.1 | 1.2 | — | |||||||||||||
| Construction Materials | — | 1.6 | 0.3 | 2.2 | |||||||||||||
| Consumer Finance | 1.2 | — | 0.4 | — | |||||||||||||
| Containers & Packaging | — | — | — | — | |||||||||||||
| Diversified Consumer Services | — | — | — | — | |||||||||||||
| Diversified Financial Services | — | — | 0.7 | — | |||||||||||||
| Diversified Telecommunication Services | — | 1.2 | 2.0 | 3.4 | |||||||||||||
| Electric Utilities | — | — | 0.5 | — | |||||||||||||
| Electrical Equipment | 2.2 | — | 0.5 | — | |||||||||||||
| Electronic Equipment, Instruments & Components | 4.0 | 2.2 | 4.2 | 2.1 | |||||||||||||
| Entertainment | — | 4.0 | 1.1 | — | |||||||||||||
| Food & Staples Retailing | — | — | 0.8 | 1.1 | |||||||||||||
| Food Products | — | 1.3 | 1.8 | 0.8 | |||||||||||||
| Gas Utilities | — | — | 0.8 | — | |||||||||||||
| Health Care Equipment & Supplies | — | — | 0.6 | — | |||||||||||||
| Health Care Providers & Services | — | — | 0.4 | 2.2 | |||||||||||||
| Hotels, Restaurants & Leisure | 2.3 | 0.9 | 0.8 | 0.9 | |||||||||||||
| Household Durables | 1.4 | 1.4 | 1.1 | 2.2 | |||||||||||||
| Household Products | — | — | 0.2 | 0.7 | |||||||||||||
| Independent Power & Renewable Electricity Producers | — | — | 1.3 | 0.7 | |||||||||||||
| Industrial Conglomerates | — | — | 0.2 | 1.0 | |||||||||||||
| Insurance | 1.2 | 3.7 | 2.5 | 3.8 | |||||||||||||
| Interactive Media & Services | 6.5 | 7.2 | 5.8 | — | |||||||||||||
| Internet & Direct Marketing Retail | 4.2 | 6.3 | 5.5 | — | |||||||||||||
| IT Services | 1.2 | 3.1 | 3.8 | — | |||||||||||||
The accompanying notes are an integral part of these financial statements.
172 Annual Report
| Lazard Emerging Markets Strategic Equity Portfolio | Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | Lazard Global Listed Infrastructure Portfolio | Lazard Global Strategic Equity Portfolio |
|||||||||||||||
| — | % | — | % | 0.8 | % | — | % | — | % | ||||||||||
| — | — | — | — | — | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| 1.1 | — | — | — | 1.4 | |||||||||||||||
| 1.8 | — | — | — | — | |||||||||||||||
| 17.7 | — | 3.4 | — | 2.9 | |||||||||||||||
| 0.8 | 2.0 | 7.2 | — | 3.0 | |||||||||||||||
| — | — | — | — | 2.0 | |||||||||||||||
| — | — | 0.7 | — | — | |||||||||||||||
| 0.8 | — | 7.1 | — | 6.6 | |||||||||||||||
| 1.0 | — | — | — | 3.4 | |||||||||||||||
| — | 6.9 | — | — | — | |||||||||||||||
| — | 1.2 | 2.2 | — | — | |||||||||||||||
| — | 5.2 | — | 13.3 | — | |||||||||||||||
| 1.0 | — | — | — | — | |||||||||||||||
| 0.8 | — | — | — | — | |||||||||||||||
| — | — | 0.9 | — | — | |||||||||||||||
| — | 5.9 | — | — | — | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| 1.0 | — | — | — | — | |||||||||||||||
| — | — | — | 14.0 | 0.9 | |||||||||||||||
| — | — | 3.8 | — | 4.7 | |||||||||||||||
| 2.0 | — | 2.7 | — | 1.7 | |||||||||||||||
| 2.3 | — | 1.7 | — | 2.5 | |||||||||||||||
| 1.0 | — | — | — | — | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| 2.0 | 3.0 | — | 10.6 | — | |||||||||||||||
| — | 4.0 | 1.1 | — | 3.3 | |||||||||||||||
| 1.8 | 21.2 | — | — | 2.6 | |||||||||||||||
| 3.7 | 6.9 | 1.6 | — | — | |||||||||||||||
| 2.4 | — | 0.8 | — | — | |||||||||||||||
| 0.7 | — | 1.6 | — | — | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| — | — | 0.8 | — | — | |||||||||||||||
| 2.1 | — | 4.4 | — | 3.6 | |||||||||||||||
| 5.7 | — | 5.3 | — | 7.0 | |||||||||||||||
| 3.8 | — | 0.8 | — | 1.4 | |||||||||||||||
| 2.7 | 9.1 | 4.8 | — | 5.5 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 173
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country (continued):
| Industry† | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio |
|||||||||||||
| Leisure Products | — | % | — | % | — | % | — | % | |||||||||
| Life Sciences Tools & Services | — | 1.0 | 1.0 | — | |||||||||||||
| Machinery | 2.8 | 1.5 | 0.5 | 0.7 | |||||||||||||
| Marine | — | — | 1.1 | — | |||||||||||||
| Media | — | — | 0.3 | — | |||||||||||||
| Metals & Mining | 2.2 | 4.1 | 3.7 | 3.2 | |||||||||||||
| Multiline Retail | 1.0 | 1.2 | — | — | |||||||||||||
| Multi-Utilities | — | — | — | — | |||||||||||||
| Oil, Gas & Consumable Fuels | 2.7 | 5.2 | 6.0 | 9.3 | |||||||||||||
| Paper & Forest Products | 0.9 | 1.6 | — | 0.7 | |||||||||||||
| Personal Products | — | 1.4 | — | 2.8 | |||||||||||||
| Pharmaceuticals | 0.8 | — | 2.3 | — | |||||||||||||
| Professional Services | — | — | — | — | |||||||||||||
| Real Estate Management & Development | — | — | 0.8 | 1.8 | |||||||||||||
| Road & Rail | 1.7 | 0.7 | — | — | |||||||||||||
| Semiconductors & Semiconductor Equipment | 16.1 | 13.2 | 11.0 | 10.2 | |||||||||||||
| Software | — | — | — | — | |||||||||||||
| Specialty Retail | 3.8 | 1.9 | 1.4 | 0.7 | |||||||||||||
| Technology Hardware, Storage & Peripherals | 6.3 | 7.0 | 5.6 | 8.3 | |||||||||||||
| Textiles, Apparel & Luxury Goods | 0.7 | 2.7 | 1.1 | — | |||||||||||||
| Tobacco | — | — | 0.1 | 1.1 | |||||||||||||
| Trading Companies & Distributors | — | — | — | — | |||||||||||||
| Transportation Infrastructure | 1.2 | 1.2 | 0.4 | 1.3 | |||||||||||||
| Water Utilities | — | — | — | — | |||||||||||||
| Wireless Telecommunication Services | — | — | 1.3 | 3.6 | |||||||||||||
| Subtotal | 97.4 | 98.4 | 98.4 | 92.2 | |||||||||||||
| Exchange Traded Funds | — | — | — | 5.0 | |||||||||||||
| Short-Term Investments | 2.8 | 2.1 | 1.1 | 2.4 | |||||||||||||
| Total Investments | 100.2 | % | 100.5 | % | 99.5 | % | 99.6 | % | |||||||||
| † | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
174 Annual Report
| Lazard Emerging Markets Strategic Equity Portfolio | Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | Lazard Global Listed Infrastructure Portfolio | Lazard Global Strategic Equity Portfolio |
|||||||||||||||
| — | % | — | % | 1.9 | % | — | % | — | % | ||||||||||
| — | — | 6.8 | — | 8.7 | |||||||||||||||
| 2.6 | — | 0.9 | — | — | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| — | 10.1 | — | 4.0 | 2.1 | |||||||||||||||
| 4.6 | — | — | — | 1.1 | |||||||||||||||
| 0.9 | — | 2.9 | — | 2.4 | |||||||||||||||
| — | 4.0 | — | 21.0 | — | |||||||||||||||
| 5.6 | — | — | — | — | |||||||||||||||
| 1.6 | — | — | — | — | |||||||||||||||
| 2.8 | — | 2.4 | — | — | |||||||||||||||
| 1.0 | — | 6.0 | — | 3.5 | |||||||||||||||
| — | 6.1 | 5.8 | — | 4.8 | |||||||||||||||
| 0.9 | — | — | — | — | |||||||||||||||
| — | — | 1.0 | 6.4 | — | |||||||||||||||
| 11.1 | — | 5.1 | — | 8.8 | |||||||||||||||
| — | — | 5.2 | — | 13.1 | |||||||||||||||
| 0.7 | 1.0 | 2.8 | — | — | |||||||||||||||
| 5.1 | — | — | — | — | |||||||||||||||
| 1.3 | 3.8 | 4.9 | — | 1.5 | |||||||||||||||
| 1.1 | — | — | — | — | |||||||||||||||
| — | — | 1.3 | — | 1.5 | |||||||||||||||
| — | 3.1 | — | 12.8 | — | |||||||||||||||
| — | — | — | 9.8 | — | |||||||||||||||
| 2.8 | — | — | — | — | |||||||||||||||
| 98.3 | 93.5 | 98.7 | 91.9 | 100.0 | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| 2.1 | 6.3 | 0.9 | 8.4 | 0.4 | |||||||||||||||
| 100.4 | % | 99.8 | % | 99.6 | % | 100.3 | % | 100.4 | % | ||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 175
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country (continued):
| Industry† | Lazard International Equity Advantage Portfolio | Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | Lazard International Equity Value Portfolio |
|||||||||||||
| Common & Preferred Stocks | |||||||||||||||||
| Aerospace & Defense | 0.7 | % | 2.5 | % | 1.4 | % | 6.2 | % | |||||||||
| Air Freight & Logistics | 2.2 | — | — | — | |||||||||||||
| Airlines | — | 1.3 | 1.0 | — | |||||||||||||
| Auto Components | 1.2 | 1.3 | 1.1 | 2.8 | |||||||||||||
| Automobiles | 2.3 | 2.4 | 1.9 | 2.8 | |||||||||||||
| Banks | 7.5 | 5.9 | 8.8 | 14.6 | |||||||||||||
| Beverages | 0.6 | 3.9 | 2.7 | 7.3 | |||||||||||||
| Biotechnology | 0.9 | — | — | — | |||||||||||||
| Building Products | 4.0 | 1.2 | 0.8 | 2.4 | |||||||||||||
| Capital Markets | 3.4 | 3.2 | — | 5.4 | |||||||||||||
| Chemicals | 2.4 | 5.1 | 5.1 | 3.6 | |||||||||||||
| Commercial Services & Suppliers | 0.2 | — | — | — | |||||||||||||
| Communications Equipment | 1.4 | — | — | — | |||||||||||||
| Construction & Engineering | 0.6 | — | — | — | |||||||||||||
| Construction Materials | 0.4 | — | — | — | |||||||||||||
| Consumer Finance | — | — | — | — | |||||||||||||
| Containers & Packaging | — | — | — | — | |||||||||||||
| Distributors | — | — | — | — | |||||||||||||
| Diversified Consumer Services | — | — | — | — | |||||||||||||
| Diversified Financial Services | 1.2 | — | — | — | |||||||||||||
| Diversified Telecommunication Services | 0.3 | 1.1 | 1.8 | — | |||||||||||||
| Electric Utilities | 2.6 | 1.7 | 1.4 | — | |||||||||||||
| Electrical Equipment | 2.6 | 3.4 | 4.7 | — | |||||||||||||
| Electronic Equipment, Instruments & Components | 0.7 | — | — | — | |||||||||||||
| Entertainment | 1.4 | 2.0 | 1.4 | 4.1 | |||||||||||||
| Equity Real Estate Investment Trusts (REITs) | 1.8 | — | — | — | |||||||||||||
| Food & Staples Retailing | 1.1 | 3.2 | 1.9 | 3.3 | |||||||||||||
| Food Products | 1.1 | 0.5 | — | — | |||||||||||||
| Gas Utilities | — | 1.2 | 1.6 | — | |||||||||||||
| Health Care Equipment & Supplies | 1.1 | 4.1 | 1.7 | — | |||||||||||||
| Health Care Providers & Services | 1.1 | — | — | — | |||||||||||||
| Health Care Technology | — | — | — | — | |||||||||||||
| Hotels, Restaurants & Leisure | 2.2 | 1.2 | 1.4 | 5.1 | |||||||||||||
| Household Durables | 2.7 | — | — | 4.3 | |||||||||||||
| Household Products | — | — | — | — | |||||||||||||
| Independent Power & Renewable Electricity Producers | 0.4 | 1.0 | 1.6 | — | |||||||||||||
| Industrial Conglomerates | 0.9 | 1.3 | 1.0 | 3.8 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
176 Annual Report
| Lazard International Quality Growth Portfolio | Lazard International Small Cap Equity Portfolio | Lazard International Strategic Equity Portfolio | Lazard Managed Equity Volatility Portfolio | Lazard US Equity Concentrated Portfolio |
|||||||||||||||
| — | % | — | % | 3.6 | % | 0.9 | % | — | % | ||||||||||
| — | 1.0 | — | 0.2 | — | |||||||||||||||
| — | 1.1 | 1.5 | — | — | |||||||||||||||
| — | 2.2 | 1.6 | 0.3 | — | |||||||||||||||
| — | — | 3.0 | — | — | |||||||||||||||
| 6.5 | 3.1 | 7.1 | 2.1 | — | |||||||||||||||
| 5.8 | 3.1 | 8.5 | 1.1 | — | |||||||||||||||
| 2.8 | — | 1.5 | 3.1 | — | |||||||||||||||
| 2.6 | 2.8 | 2.1 | — | 2.5 | |||||||||||||||
| 5.9 | 7.1 | 3.6 | 2.7 | 9.1 | |||||||||||||||
| — | 4.1 | 3.9 | 1.0 | — | |||||||||||||||
| — | 3.0 | — | 1.5 | 4.9 | |||||||||||||||
| — | — | — | 1.1 | — | |||||||||||||||
| — | 1.8 | — | — | — | |||||||||||||||
| — | — | — | — | 3.6 | |||||||||||||||
| — | — | — | 0.2 | — | |||||||||||||||
| — | — | — | 0.3 | — | |||||||||||||||
| — | — | — | — | 4.2 | |||||||||||||||
| — | — | — | 1.5 | — | |||||||||||||||
| — | 1.3 | — | 0.1 | — | |||||||||||||||
| — | 0.9 | — | 4.1 | — | |||||||||||||||
| — | — | 1.4 | 2.8 | — | |||||||||||||||
| 2.3 | 0.8 | 5.2 | — | — | |||||||||||||||
| 2.6 | — | 1.2 | 1.0 | 1.3 | |||||||||||||||
| 3.5 | 1.0 | 2.0 | 0.5 | 0.6 | |||||||||||||||
| — | 3.0 | — | 5.3 | 10.2 | |||||||||||||||
| 2.2 | 1.0 | 1.1 | 7.4 | 6.8 | |||||||||||||||
| — | 2.0 | — | 4.6 | — | |||||||||||||||
| — | 1.5 | — | 1.9 | — | |||||||||||||||
| 3.9 | 1.9 | 2.7 | 2.0 | 7.2 | |||||||||||||||
| — | 0.6 | — | 2.9 | — | |||||||||||||||
| — | 0.9 | — | 0.3 | — | |||||||||||||||
| — | 1.0 | 1.7 | 2.9 | — | |||||||||||||||
| — | 1.9 | — | — | — | |||||||||||||||
| 0.6 | 1.0 | — | 4.1 | — | |||||||||||||||
| — | 0.6 | 1.4 | 0.8 | — | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 177
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country (continued):
| Industry† | Lazard International Equity Advantage Portfolio | Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | Lazard International Equity Value Portfolio |
|||||||||||||
| Insurance | 5.1 | % | 4.2 | % | 5.3 | % | 5.9 | % | |||||||||
| Interactive Media & Services | — | 0.6 | 2.7 | — | |||||||||||||
| Internet & Direct Marketing Retail | 0.1 | 0.7 | 1.0 | — | |||||||||||||
| IT Services | 1.4 | 3.3 | 3.4 | — | |||||||||||||
| Leisure Products | 0.6 | 4.3 | 2.9 | 3.8 | |||||||||||||
| Life Sciences Tools & Services | 0.4 | — | — | — | |||||||||||||
| Machinery | 1.2 | 2.6 | 3.1 | 4.8 | |||||||||||||
| Marine | 2.0 | — | — | — | |||||||||||||
| Media | 0.3 | 0.7 | — | — | |||||||||||||
| Metals & Mining | 3.3 | 1.4 | 0.9 | 1.9 | |||||||||||||
| Multiline Retail | 0.5 | — | 0.7 | — | |||||||||||||
| Multi-Utilities | — | 2.4 | 2.1 | 4.3 | |||||||||||||
| Oil, Gas & Consumable Fuels | 3.7 | 4.6 | 6.3 | 4.6 | |||||||||||||
| Personal Products | 2.4 | 1.5 | 2.0 | — | |||||||||||||
| Pharmaceuticals | 10.5 | 6.4 | 5.9 | 4.5 | |||||||||||||
| Professional Services | 1.9 | 4.9 | 5.2 | — | |||||||||||||
| Real Estate Management & Development | 0.7 | 3.9 | 1.1 | — | |||||||||||||
| Road & Rail | — | — | — | — | |||||||||||||
| Semiconductors & Semiconductor Equipment | 4.9 | 3.5 | 4.6 | 1.4 | |||||||||||||
| Software | 2.2 | — | — | — | |||||||||||||
| Specialty Retail | 1.2 | 1.4 | 1.9 | 1.5 | |||||||||||||
| Technology Hardware, Storage & Peripherals | 0.8 | — | — | — | |||||||||||||
| Textiles, Apparel & Luxury Goods | 1.7 | 1.4 | 1.9 | — | |||||||||||||
| Thrifts & Mortgage Finance | — | — | — | — | |||||||||||||
| Tobacco | 3.5 | — | — | — | |||||||||||||
| Trading Companies & Distributors | — | 1.4 | 1.8 | — | |||||||||||||
| Water Utilities | — | — | 0.6 | — | |||||||||||||
| Wireless Telecommunication Services | 2.9 | — | — | 1.9 | |||||||||||||
| Subtotal | 100.3 | 96.7 | 94.7 | 100.3 | |||||||||||||
| Short-Term Investments | 0.6 | 3.3 | 4.8 | — | |||||||||||||
| Total Investments | 100.9 | % | 100.0 | % | 99.5 | % | 100.3 | % | |||||||||
| † | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
178 Annual Report
| Lazard International Quality Growth Portfolio | Lazard International Small Cap Equity Portfolio | Lazard International Strategic Equity Portfolio | Lazard Managed Equity Volatility Portfolio | Lazard US Equity Concentrated Portfolio |
|||||||||||||||
| 8.4 | % | 2.0 | % | 6.6 | % | 2.6 | % | — | % | ||||||||||
| 4.9 | 1.1 | — | 1.5 | 7.1 | |||||||||||||||
| 1.9 | 0.6 | 1.4 | — | — | |||||||||||||||
| — | 3.3 | 3.0 | 3.5 | 12.8 | |||||||||||||||
| 3.2 | 2.0 | 3.9 | 0.6 | — | |||||||||||||||
| — | 1.2 | — | 2.1 | 2.0 | |||||||||||||||
| — | 4.9 | 2.5 | 0.8 | 3.1 | |||||||||||||||
| — | — | — | 0.3 | — | |||||||||||||||
| — | 0.6 | 1.7 | 3.6 | — | |||||||||||||||
| — | 2.0 | 1.8 | 1.1 | — | |||||||||||||||
| 2.0 | 1.8 | 0.5 | 1.0 | 5.0 | |||||||||||||||
| — | — | 2.3 | 1.4 | — | |||||||||||||||
| — | 1.6 | 1.8 | 1.3 | — | |||||||||||||||
| 3.8 | — | — | — | — | |||||||||||||||
| 2.2 | 2.9 | 2.8 | 8.3 | — | |||||||||||||||
| 10.1 | 3.7 | 5.4 | 2.7 | 2.4 | |||||||||||||||
| — | 8.6 | 3.1 | 1.2 | — | |||||||||||||||
| — | — | — | 0.9 | 1.9 | |||||||||||||||
| 9.1 | 2.1 | 3.8 | 2.9 | 11.1 | |||||||||||||||
| 4.4 | 4.9 | — | 3.9 | — | |||||||||||||||
| 2.8 | 4.3 | 1.9 | 1.8 | 3.2 | |||||||||||||||
| — | 0.6 | — | 0.4 | — | |||||||||||||||
| 3.4 | — | 1.4 | 0.3 | — | |||||||||||||||
| — | — | 1.1 | 0.2 | — | |||||||||||||||
| — | — | — | 0.3 | — | |||||||||||||||
| 3.4 | 2.3 | — | 0.3 | — | |||||||||||||||
| — | 0.3 | — | — | — | |||||||||||||||
| — | — | — | 1.1 | — | |||||||||||||||
| 98.3 | 99.5 | 98.1 | 100.8 | 99.0 | |||||||||||||||
| 1.7 | 0.4 | 1.7 | 0.7 | 1.0 | |||||||||||||||
| 100.0 | % | 99.9 | % | 99.8 | % | 101.5 | % | 100.0 | % | ||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 179
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country (concluded):
| Industry† | Lazard US Equity Focus Portfolio | Lazard US Small- Mid Cap Equity Portfolio | Lazard US Sustainable Equity Portfolio | Lazard US Systematic Small Cap Equity Portfolio |
|||||||||||||
| Common & Preferred Stocks | |||||||||||||||||
| Aerospace & Defense | — | % | 2.1 | % | — | % | 0.7 | % | |||||||||
| Air Freight & Logistics | — | — | — | 0.6 | |||||||||||||
| Airlines | — | 1.2 | — | — | |||||||||||||
| Auto Components | 1.1 | 0.5 | 0.9 | 0.4 | |||||||||||||
| Automobiles | — | — | — | 0.5 | |||||||||||||
| Banks | 5.3 | 8.4 | 6.1 | 6.2 | |||||||||||||
| Beverages | — | — | — | 0.3 | |||||||||||||
| Biotechnology | — | 2.9 | 0.5 | 8.3 | |||||||||||||
| Building Products | — | 4.4 | — | 2.8 | |||||||||||||
| Capital Markets | 4.5 | 1.4 | 4.6 | 1.1 | |||||||||||||
| Chemicals | — | 2.0 | 1.9 | 3.9 | |||||||||||||
| Commercial Services & Suppliers | 4.3 | — | 3.4 | 1.0 | |||||||||||||
| Communications Equipment | 3.0 | 2.7 | 2.1 | 1.4 | |||||||||||||
| Construction & Engineering | — | 0.7 | — | 0.7 | |||||||||||||
| Construction Materials | — | 1.1 | — | 1.2 | |||||||||||||
| Consumer Finance | 4.0 | — | — | 0.6 | |||||||||||||
| Containers & Packaging | — | 2.3 | 2.3 | 0.4 | |||||||||||||
| Distributors | — | — | — | 0.2 | |||||||||||||
| Diversified Consumer Services | — | — | — | 0.2 | |||||||||||||
| Diversified Telecommunication Services | — | — | — | 0.2 | |||||||||||||
| Electric Utilities | — | — | — | 0.2 | |||||||||||||
| Electrical Equipment | — | 4.2 | 3.1 | 1.5 | |||||||||||||
| Electronic Equipment, Instruments & Components | — | — | — | 1.7 | |||||||||||||
| Energy Equipment & Services | — | 2.1 | — | 0.2 | |||||||||||||
| Entertainment | — | 1.3 | 1.3 | 0.5 | |||||||||||||
| Equity Real Estate Investment Trusts (REITs) | — | 8.1 | 2.5 | 4.4 | |||||||||||||
| Food & Staples Retailing | 2.7 | 1.5 | 1.5 | 1.3 | |||||||||||||
| Food Products | — | 2.1 | 0.3 | 2.5 | |||||||||||||
| Gas Utilities | — | 1.8 | — | 0.6 | |||||||||||||
| Health Care Equipment & Supplies | 4.6 | 1.6 | 4.4 | 5.1 | |||||||||||||
| Health Care Providers & Services | 1.5 | 1.1 | 5.4 | 1.4 | |||||||||||||
| Health Care Technology | — | 0.8 | — | 0.7 | |||||||||||||
| Hotels, Restaurants & Leisure | 5.7 | 2.9 | 1.8 | 1.3 | |||||||||||||
| Household Durables | — | 1.3 | — | 2.0 | |||||||||||||
| Household Products | — | — | 2.3 | 0.4 | |||||||||||||
| Independent Power & Renewable Electricity Producers | — | — | — | 0.4 | |||||||||||||
| Industrial Conglomerates | 3.4 | — | — | — | |||||||||||||
The accompanying notes are an integral part of these financial statements.
180 Annual Report
| Industry† | Lazard US Equity Focus Portfolio | Lazard US Small- Mid Cap Equity Portfolio | Lazard US Sustainable Equity Portfolio | Lazard US Systematic Small Cap Equity Portfolio |
|||||||||||||
| Insurance | 4.2 | % | 2.9 | % | — | % | 0.8 | % | |||||||||
| Interactive Media & Services | 7.2 | 3.1 | — | 0.7 | |||||||||||||
| Internet & Direct Marketing Retail | 4.2 | — | — | 0.5 | |||||||||||||
| IT Services | 4.6 | 4.3 | 6.8 | 2.4 | |||||||||||||
| Leisure Products | — | 2.6 | — | 1.4 | |||||||||||||
| Life Sciences Tools & Services | 7.2 | 4.6 | 8.3 | 0.3 | |||||||||||||
| Machinery | — | 3.3 | 3.3 | 2.4 | |||||||||||||
| Marine | — | — | — | 2.7 | |||||||||||||
| Media | — | — | — | 2.1 | |||||||||||||
| Multiline Retail | 3.5 | 1.2 | 2.6 | 0.4 | |||||||||||||
| Oil, Gas & Consumable Fuels | — | 2.1 | — | 1.2 | |||||||||||||
| Paper & Forest Products | — | 1.5 | — | 1.7 | |||||||||||||
| Personal Products | — | — | — | 1.1 | |||||||||||||
| Pharmaceuticals | 4.9 | 1.1 | 4.6 | 0.9 | |||||||||||||
| Professional Services | — | 1.9 | — | 3.1 | |||||||||||||
| Real Estate Management & Development | — | — | — | 0.8 | |||||||||||||
| Road & Rail | 4.2 | — | 2.4 | 0.5 | |||||||||||||
| Semiconductors & Semiconductor Equipment | 4.5 | 2.5 | 5.6 | 3.2 | |||||||||||||
| Software | 9.4 | 4.9 | 14.4 | 9.0 | |||||||||||||
| Specialty Retail | 3.8 | 2.2 | 5.4 | 3.6 | |||||||||||||
| Technology Hardware, Storage & Peripherals | — | — | — | 0.3 | |||||||||||||
| Textiles, Apparel & Luxury Goods | — | 0.9 | — | 1.8 | |||||||||||||
| Thrifts & Mortgage Finance | — | — | — | 0.6 | |||||||||||||
| Tobacco | — | — | — | 0.3 | |||||||||||||
| Trading Companies & Distributors | — | — | — | 2.0 | |||||||||||||
| Wireless Telecommunication Services | — | — | — | 0.1 | |||||||||||||
| Subtotal | 97.8 | 97.6 | 97.8 | 98.8 | |||||||||||||
| Short-Term Investments | 2.1 | — | 2.6 | 3.2 | |||||||||||||
| Total Investments | 99.9 | % | 97.6 | % | 100.4 | % | 102.0 | % | |||||||||
| † | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
Annual Report 181
The Lazard Funds, Inc. Statements of Assets and Liabilities
| December 31, 2021 | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio |
|||||||||
| ASSETS | |||||||||||
| Investments in securities, at fair value | $ | 157,900,324 | $ | 159,493,473 | |||||||
| Cash | — | 1,742 | |||||||||
| Foreign currency, at fair value | 1,158 | 1,643,376 | |||||||||
| Receivables for: | |||||||||||
| Capital stock sold | 286,924 | 1,846,845 | |||||||||
| Dividends | 94,680 | 349,425 | |||||||||
| Investments sold | 12,392 | 305,811 | |||||||||
| Total assets | 158,295,478 | 163,640,672 | |||||||||
| LIABILITIES | |||||||||||
| Payables for: | |||||||||||
| Management fees | 132,109 | 137,184 | |||||||||
| Foreign capital gains taxes | 393,629 | 275,190 | |||||||||
| Accrued custodian fees | 49,278 | 48,453 | |||||||||
| Accrued distribution fees | 2,041 | 448 | |||||||||
| Accrued professional services | 28,715 | 25,769 | |||||||||
| Accrued directors’ fees | 543 | 247 | |||||||||
| Capital stock redeemed | 3,969 | 1,697,088 | |||||||||
| Investments purchased | 66,777 | 2,741,324 | |||||||||
| Other accrued expenses and payables | 5,586 | 7,321 | |||||||||
| Total liabilities | 682,647 | 4,933,024 | |||||||||
| Net assets | $ | 157,612,831 | $ | 158,707,648 | |||||||
| NET ASSETS | |||||||||||
| Paid in capital | $ | 234,722,920 | $ | 137,834,301 | |||||||
| Distributable earnings (Accumulated loss) | (77,110,089 | ) | 20,873,347 | ||||||||
| Net assets | $ | 157,612,831 | $ | 158,707,648 | |||||||
| Institutional Shares | |||||||||||
| Net assets | $ | 148,419,472 | $ | 156,283,961 | |||||||
| Shares of capital stock outstanding* | 9,637,932 | 13,520,650 | |||||||||
| Net asset value, offering and redemption price per share | $ | 15.40 | $ | 11.56 | |||||||
| Open Shares | |||||||||||
| Net assets | $ | 9,193,359 | $ | 2,112,857 | |||||||
| Shares of capital stock outstanding* | 600,534 | 183,190 | |||||||||
| Net asset value, offering and redemption price per share | $ | 15.31 | $ | 11.53 | |||||||
| R6 Shares | |||||||||||
| Net assets | — | $ | 310,830 | ||||||||
| Shares of capital stock outstanding* | — | 26,865 | |||||||||
| Net asset value, offering and redemption price per share | — | $ | 11.57 | ||||||||
| Cost of investments in securities | $ | 120,485,921 | $ | 121,125,930 | |||||||
| Cost of foreign currency | $ | 1,152 | $ | 1,643,223 | |||||||
| * | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
The accompanying notes are an integral part of these financial statements.
182 Annual Report
| Lazard Emerging Markets Equity Advantage Portfolio |
Lazard Emerging Markets Equity Portfolio |
Lazard Emerging Markets Strategic Equity Portfolio |
Lazard Equity Franchise Portfolio |
Lazard Global Equity Select Portfolio | ||||||||||||||||||||
| $ | 69,135,567 | $ | 3,637,583,873 | $ | 60,468,756 | $ | 105,317,230 | $ | 111,082,519 | |||||||||||||||
| — | — | — | — | — | ||||||||||||||||||||
| 5,043 | 2,076,876 | 5,471 | 18 | 44 | ||||||||||||||||||||
| 24,503 | 19,144,391 | 5,730 | 48 | 412,920 | ||||||||||||||||||||
| 80,979 | 6,741,864 | 130,433 | 328,177 | 108,990 | ||||||||||||||||||||
| 359,064 | 1,960,945 | — | — | — | ||||||||||||||||||||
| 69,605,156 | 3,667,507,949 | 60,610,390 | 105,645,473 | 111,604,473 | ||||||||||||||||||||
| 4,967 | 3,123,699 | 86,981 | 62,303 | 59,744 | ||||||||||||||||||||
| — | 2,513,185 | 32,075 | — | — | ||||||||||||||||||||
| 54,889 | 780,694 | 28,454 | 18,271 | 24,188 | ||||||||||||||||||||
| 284 | 93,322 | 713 | 18 | 329 | ||||||||||||||||||||
| 23,587 | 68,360 | 56,673 | 23,630 | 24,271 | ||||||||||||||||||||
| — | 4,186 | 174 | — | — | ||||||||||||||||||||
| — | 7,752,691 | 183,748 | 15,399 | 5,430 | ||||||||||||||||||||
| 87 | — | — | — | — | ||||||||||||||||||||
| 4,041 | 253,832 | 3,772 | 4,281 | 4,525 | ||||||||||||||||||||
| 87,855 | 14,589,969 | 392,590 | 123,902 | 118,487 | ||||||||||||||||||||
| $ | 69,517,301 | $ | 3,652,917,980 | $ | 60,217,800 | $ | 105,521,571 | $ | 111,485,986 | |||||||||||||||
| $ | 69,804,623 | $ | 4,157,256,525 | $ | 103,344,541 | $ | 88,809,075 | $ | 70,397,247 | |||||||||||||||
| (287,322 | ) | (504,338,545 | ) | (43,126,741 | ) | 16,712,496 | 41,088,739 | |||||||||||||||||
| $ | 69,517,301 | $ | 3,652,917,980 | $ | 60,217,800 | $ | 105,521,571 | $ | 111,485,986 | |||||||||||||||
| $ | 68,537,874 | $ | 3,271,175,380 | $ | 57,268,944 | $ | 105,428,684 | $ | 109,942,674 | |||||||||||||||
| 5,322,452 | 180,498,233 | 4,450,374 | 9,780,445 | 5,857,479 | ||||||||||||||||||||
| $ | 12.88 | $ | 18.12 | $ | 12.87 | $ | 10.78 | $ | 18.77 | |||||||||||||||
| $ | 979,427 | $ | 371,862,670 | $ | 2,948,856 | $ | 92,887 | $ | 1,543,312 | |||||||||||||||
| 76,021 | 19,885,383 | 228,303 | 8,621 | 82,179 | ||||||||||||||||||||
| $ | 12.88 | $ | 18.70 | $ | 12.92 | $ | 10.77 | $ | 18.78 | |||||||||||||||
| — | $ | 9,879,930 | — | — | — | |||||||||||||||||||
| — | 544,810 | — | — | — | ||||||||||||||||||||
| — | $ | 18.13 | — | — | — | |||||||||||||||||||
| $ | 69,436,212 | $ | 3,116,002,675 | $ | 58,344,935 | $ | 90,037,100 | $ | 69,748,977 | |||||||||||||||
| $ | 5,014 | $ | 2,076,841 | $ | 5,471 | $ | 18 | $ | 44 | |||||||||||||||
Annual Report 183
| December 31, 2021 | Lazard Global Listed Infrastructure Portfolio |
Lazard Global Strategic Equity Portfolio | |||||||||
| ASSETS | |||||||||||
| Investments in securities, at fair value | $ | 7,075,834,378 | $ | 17,777,707 | |||||||
| Non-controlled affiliated issuers, at fair value (Note 5) | 556,531,322 | — | |||||||||
| Cash | — | 1,365 | |||||||||
| Foreign currency, at fair value | 372,988 | 34 | |||||||||
| Receivables for: | |||||||||||
| Dividends | 25,138,740 | 12,400 | |||||||||
| Capital stock sold | 22,781,830 | — | |||||||||
| Investments sold | 16,798,992 | — | |||||||||
| Tax reclaims (Note 2(b)) | 2,876,326 | — | |||||||||
| Amount due from Investment Manager (Note 3) | — | — | |||||||||
| Gross unrealized appreciation on forward currency contracts | 1,137,925 | — | |||||||||
| Total assets | 7,701,472,501 | 17,791,506 | |||||||||
| LIABILITIES | |||||||||||
| Due to custodian | — | — | |||||||||
| Foreign currency due to custodian | — | — | |||||||||
| Payables for: | |||||||||||
| Management fees | 5,676,149 | 6,449 | |||||||||
| Accrued custodian fees | 562,115 | 16,629 | |||||||||
| Accrued professional services | 129,509 | 23,487 | |||||||||
| Accrued distribution fees | 65,164 | 42 | |||||||||
| Accrued directors’ fees | 729 | — | |||||||||
| Foreign capital gains taxes | — | — | |||||||||
| Capital stock redeemed | 4,016,254 | 30,067 | |||||||||
| Investments purchased | 1,492,335 | — | |||||||||
| Gross unrealized depreciation on forward currency contracts | 80,386,242 | — | |||||||||
| Other accrued expenses and payables | 256,276 | 2,919 | |||||||||
| Total liabilities | 92,584,773 | 79,593 | |||||||||
| Net assets | $ | 7,608,887,728 | $ | 17,711,913 | |||||||
| NET ASSETS | |||||||||||
| Paid in capital | $ | 6,562,734,947 | $ | 15,338,434 | |||||||
| Distributable earnings (Accumulated loss) | 1,046,152,781 | 2,373,479 | |||||||||
| Net assets | $ | 7,608,887,728 | $ | 17,711,913 | |||||||
| Institutional Shares | |||||||||||
| Net assets | $ | 7,308,516,099 | $ | 17,501,757 | |||||||
| Shares of capital stock outstanding* | 442,920,557 | 1,297,363 | |||||||||
| Net asset value, offering and redemption price per share | $ | 16.50 | $ | 13.49 | |||||||
| Open Shares | |||||||||||
| Net assets | $ | 300,371,629 | $ | 210,156 | |||||||
| Shares of capital stock outstanding* | 18,194,277 | 15,713 | |||||||||
| Net asset value, offering and redemption price per share | $ | 16.51 | $ | 13.38 | † | ||||||
| R6 Shares | |||||||||||
| Net assets | — | — | |||||||||
| Shares of capital stock outstanding* | — | — | |||||||||
| Net asset value, offering and redemption price per share | — | — | |||||||||
| Cost of investments in securities | $ | 5,829,126,942 | $ | 15,396,114 | |||||||
| Cost of non-controlled affiliated issuers | $ | 851,787,771 | $ | — | |||||||
| Cost of foreign currency | $ | 370,150 | $ | 34 | |||||||
| * | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
| † | Shares values are rounded for presentation purposes. |
The accompanying notes are an integral part of these financial statements.
184 Annual Report
| Lazard International Equity Advantage Portfolio |
Lazard International Equity Portfolio |
Lazard International Equity Select Portfolio |
Lazard International Equity Value Portfolio |
Lazard International Quality Growth Portfolio |
||||||||||||||||||||
| $ | 3,018,083 | $ | 1,777,311,752 | $ | 82,566,995 | $ | 3,008,802 | $ | 62,816,291 | |||||||||||||||
| — | — | — | — | — | ||||||||||||||||||||
| — | — | — | — | — | ||||||||||||||||||||
| 1,572 | 1,004,577 | 130 | 7,148 | 28 | ||||||||||||||||||||
| 11,697 | 8,383,572 | 213,414 | 17,124 | 58,074 | ||||||||||||||||||||
| — | 1,765,184 | 382,655 | 11 | — | ||||||||||||||||||||
| — | 3,096,363 | — | 14,902 | — | ||||||||||||||||||||
| — | 271,956 | — | — | — | ||||||||||||||||||||
| 4,317 | — | — | 4,237 | — | ||||||||||||||||||||
| — | — | — | — | — | ||||||||||||||||||||
| 3,035,669 | 1,791,833,404 | 83,163,194 | 3,052,224 | 62,874,393 | ||||||||||||||||||||
| — | — | — | 7,695 | — | ||||||||||||||||||||
| — | 725,144 | — | — | — | ||||||||||||||||||||
| — | 1,166,236 | 45,570 | — | 31,298 | ||||||||||||||||||||
| 19,107 | 243,219 | 34,645 | 12,405 | 14,799 | ||||||||||||||||||||
| 23,501 | 46,905 | 23,624 | 23,501 | 23,501 | ||||||||||||||||||||
| 27 | 23,122 | 812 | 13 | 71 | ||||||||||||||||||||
| — | 9,037 | — | — | — | ||||||||||||||||||||
| — | 313,372 | 33,324 | — | — | ||||||||||||||||||||
| — | 8,538,635 | 72,061 | — | — | ||||||||||||||||||||
| — | 4,158,338 | — | 7,083 | — | ||||||||||||||||||||
| — | — | — | — | — | ||||||||||||||||||||
| 2,905 | 115,701 | 5,549 | 2,849 | 3,518 | ||||||||||||||||||||
| 45,540 | 15,339,709 | 215,585 | 53,546 | 73,187 | ||||||||||||||||||||
| $ | 2,990,129 | $ | 1,776,493,695 | $ | 82,947,609 | $ | 2,998,678 | $ | 62,801,206 | |||||||||||||||
| $ | 2,638,531 | $ | 1,389,291,773 | $ | 70,024,031 | $ | 3,499,936 | $ | 59,391,008 | |||||||||||||||
| 351,598 | 387,201,922 | 12,923,578 | (501,258 | ) | 3,410,198 | |||||||||||||||||||
| $ | 2,990,129 | $ | 1,776,493,695 | $ | 82,947,609 | $ | 2,998,678 | $ | 62,801,206 | |||||||||||||||
| $ | 2,854,940 | $ | 1,567,011,064 | $ | 78,781,920 | $ | 2,957,103 | $ | 62,468,105 | |||||||||||||||
| 255,051 | 87,137,715 | 6,846,470 | 307,590 | 3,718,473 | ||||||||||||||||||||
| $ | 11.19 | $ | 17.98 | $ | 11.51 | $ | 9.61 | $ | 16.80 | |||||||||||||||
| $ | 135,189 | $ | 93,296,015 | $ | 4,165,689 | $ | 41,575 | $ | 333,101 | |||||||||||||||
| 12,075 | 5,114,581 | 360,195 | 4,322 | 19,946 | ||||||||||||||||||||
| $ | 11.20 | $ | 18.24 | $ | 11.57 | $ | 9.62 | $ | 16.70 | |||||||||||||||
| — | $ | 116,186,616 | — | — | — | |||||||||||||||||||
| — | 6,472,435 | — | — | — | ||||||||||||||||||||
| — | $ | 17.95 | — | — | — | |||||||||||||||||||
| $ | 2,676,020 | $ | 1,429,854,318 | $ | 69,713,725 | $ | 2,848,345 | $ | 59,347,042 | |||||||||||||||
| $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
| $ | 1,566 | $ | 1,002,797 | $ | 129 | $ | 7,148 | $ | 27 | |||||||||||||||
Annual Report 185
| December 31, 2021 | Lazard International Small Cap Equity Portfolio | Lazard International Strategic Equity Portfolio |
|||||||||
| ASSETS | |||||||||||
| Investments in securities, at fair value | $ | 26,488,805 | $ | 6,287,478,835 | |||||||
| Cash | — | — | |||||||||
| Foreign currency, at fair value | 10,146 | 385,468 | |||||||||
| Receivables for: | |||||||||||
| Dividends | 123,763 | 15,263,896 | |||||||||
| Capital stock sold | 1,686 | 6,011,705 | |||||||||
| Investments sold | 47,796 | — | |||||||||
| Amount due from Investment Manager (Note 3) | — | — | |||||||||
| Total assets | 26,672,196 | 6,309,139,904 | |||||||||
| LIABILITIES | |||||||||||
| Due to custodian | 21,176 | — | |||||||||
| Foreign currency due to custodian | 22,959 | — | |||||||||
| Payables for: | |||||||||||
| Management fees | 25,771 | 3,989,773 | |||||||||
| Foreign capital gains taxes | — | 1,829,370 | |||||||||
| Accrued custodian fees | 26,706 | 541,498 | |||||||||
| Accrued distribution fees | 2,767 | 111,270 | |||||||||
| Accrued professional services | 24,685 | 66,838 | |||||||||
| Accrued directors’ fees | 113 | — | |||||||||
| Capital stock redeemed | 2,075 | 3,510,936 | |||||||||
| Investments purchased | 31,177 | — | |||||||||
| Other accrued expenses and payables | 4,069 | 197,269 | |||||||||
| Total liabilities | 161,498 | 10,246,954 | |||||||||
| Net assets | $ | 26,510,698 | $ | 6,298,892,950 | |||||||
| NET ASSETS | |||||||||||
| Paid in capital | $ | 21,663,726 | $ | 4,948,414,162 | |||||||
| Distributable earnings (Accumulated loss) | 4,846,972 | 1,350,478,788 | |||||||||
| Net assets | $ | 26,510,698 | $ | 6,298,892,950 | |||||||
| Institutional Shares | |||||||||||
| Net assets | $ | 14,541,730 | $ | 5,713,405,108 | |||||||
| Shares of capital stock outstanding* | 1,322,884 | 349,026,972 | |||||||||
| Net asset value, offering and redemption price per share | $ | 10.99 | $ | 16.37 | |||||||
| Open Shares | |||||||||||
| Net assets | $ | 11,968,968 | $ | 460,862,363 | |||||||
| Shares of capital stock outstanding* | 1,085,347 | 27,877,105 | |||||||||
| Net asset value, offering and redemption price per share | $ | 11.03 | $ | 16.53 | |||||||
| R6 Shares | |||||||||||
| Net assets | — | $ | 124,625,479 | ||||||||
| Shares of capital stock outstanding* | — | 7,606,148 | |||||||||
| Net asset value, offering and redemption price per share | — | $ | 16.38 | ||||||||
| Cost of investments in securities | $ | 21,965,499 | $ | 4,875,916,986 | |||||||
| Cost of foreign currency | $ | 10,182 | $ | 377,192 | |||||||
| * | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
The accompanying notes are an integral part of these financial statements.
186 Annual Report
| Lazard Managed Equity Volatility Portfolio |
Lazard US Equity Concentrated Portfolio |
Lazard US Equity Focus Portfolio |
Lazard US Small-Mid Cap Equity Portfolio |
Lazard US Sustainable Equity Portfolio |
||||||||||||||||||||
| $ | 31,591,022 | $ | 1,981,229,578 | $ | 80,339,110 | $ | 103,497,038 | $ | 15,403,046 | |||||||||||||||
| — | — | 16,100 | 2,500,872 | — | ||||||||||||||||||||
| 4,189 | — | — | — | — | ||||||||||||||||||||
| 55,489 | 886,506 | 25,861 | 80,610 | 4,773 | ||||||||||||||||||||
| 45,225 | 1,367,762 | 90,045 | 166,831 | 50 | ||||||||||||||||||||
| 1 | — | — | — | 37,846 | ||||||||||||||||||||
| — | — | — | — | 2,077 | ||||||||||||||||||||
| 31,695,926 | 1,983,483,846 | 80,471,116 | 106,245,351 | 15,447,792 | ||||||||||||||||||||
| — | — | — | — | — | ||||||||||||||||||||
| — | — | — | — | — | ||||||||||||||||||||
| 12,073 | 1,153,603 | 33,657 | 67,099 | — | ||||||||||||||||||||
| — | — | — | — | — | ||||||||||||||||||||
| 21,118 | 98,472 | 19,203 | 27,794 | 13,035 | ||||||||||||||||||||
| 23 | 8,195 | 321 | 2,335 | 116 | ||||||||||||||||||||
| 23,745 | 36,934 | 23,598 | 23,580 | 13,269 | ||||||||||||||||||||
| — | — | — | — | — | ||||||||||||||||||||
| 508,155 | 525,202 | — | 86,253 | — | ||||||||||||||||||||
| — | — | — | — | 74,167 | ||||||||||||||||||||
| 3,236 | 59,185 | 5,428 | 5,840 | 4,942 | ||||||||||||||||||||
| 568,350 | 1,881,591 | 82,207 | 212,901 | 105,529 | ||||||||||||||||||||
| $ | 31,127,576 | $ | 1,981,602,255 | $ | 80,388,909 | $ | 106,032,450 | $ | 15,342,263 | |||||||||||||||
| $ | 27,763,185 | $ | 1,245,400,326 | $ | 50,420,000 | $ | 81,654,046 | $ | 10,466,275 | |||||||||||||||
| 3,364,391 | 736,201,929 | 29,968,909 | 24,378,404 | 4,875,988 | ||||||||||||||||||||
| $ | 31,127,576 | $ | 1,981,602,255 | $ | 80,388,909 | $ | 106,032,450 | $ | 15,342,263 | |||||||||||||||
| $ | 31,040,337 | $ | 1,943,232,437 | $ | 42,754,737 | $ | 94,516,931 | $ | 14,687,305 | |||||||||||||||
| 2,357,213 | 98,646,155 | 2,660,294 | 6,312,789 | 952,893 | ||||||||||||||||||||
| $ | 13.17 | $ | 19.70 | $ | 16.07 | $ | 14.97 | $ | 15.41 | |||||||||||||||
| $ | 87,239 | $ | 35,649,381 | $ | 1,568,567 | $ | 10,797,628 | $ | 654,958 | |||||||||||||||
| 6,629 | 1,793,445 | 97,056 | 796,285 | 42,453 | ||||||||||||||||||||
| $ | 13.16 | $ | 19.88 | $ | 16.16 | $ | 13.56 | $ | 15.43 | |||||||||||||||
| — | $ | 2,720,437 | $ | 36,065,605 | $ | 717,891 | — | |||||||||||||||||
| — | 137,684 | 2,242,997 | 47,929 | — | ||||||||||||||||||||
| — | $ | 19.76 | $ | 16.08 | $ | 14.98 | — | |||||||||||||||||
| $ | 28,449,549 | $ | 1,273,092,867 | $ | 50,619,993 | $ | 80,618,091 | $ | 10,562,890 | |||||||||||||||
| $ | 4,170 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Annual Report 187
| December 31, 2021 | Lazard US Systematic Small Cap Equity Portfolio |
|||||
| ASSETS | ||||||
| Investments in securities, at fair value | $ | 4,182,401 | ||||
| Cash | 9,226 | |||||
| Receivables for: | ||||||
| Amount due from Investment Manager (Note 3) | 31,448 | |||||
| Dividends | 2,213 | |||||
| Deferred offering costs (Note 2(f)) | 111,132 | |||||
| Total assets | 4,336,420 | |||||
| LIABILITIES | ||||||
| Payables for: | ||||||
| Offering costs (Note 2(f)) | 133,431 | |||||
| Accrued professional services | 19,000 | |||||
| Accrued custodian fees | 7,000 | |||||
| Accrued distribution fees | 22 | |||||
| Investments purchased | 68,685 | |||||
| Other accrued expenses and payables | 5,921 | |||||
| Total liabilities | 234,059 | |||||
| Net assets | $ | 4,102,361 | ||||
| NET ASSETS | ||||||
| Paid in capital | $ | 4,028,878 | ||||
| Distributable earnings (Accumulated loss) | 73,483 | |||||
| Net assets | $ | 4,102,361 | ||||
| Institutional Shares | ||||||
| Net assets | $ | 3,982,596 | ||||
| Shares of capital stock outstanding* | 388,111 | |||||
| Net asset value, offering and redemption price per share | $ | 10.26 | ||||
| Open Shares | ||||||
| Net assets | $ | 119,765 | ||||
| Shares of capital stock outstanding* | 11,650 | |||||
| Net asset value, offering and redemption price per share | $ | 10.28 | ||||
| Cost of investments in securities | $ | 4,120,511 | ||||
| * | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
The accompanying notes are an integral part of these financial statements.
188 Annual Report
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Annual Report 189
The Lazard Funds, Inc. Statements of Operations
| For the Year Ended December 31, 2021 | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio |
|||||||||
| Investment Income (Loss) | |||||||||||
| Income | |||||||||||
| Dividends | $ | 2,842,577 | $ | 3,124,031 | |||||||
| Non-cash income | — | 372,643 | |||||||||
| Total investment income* | 2,842,577 | 3,496,674 | |||||||||
| Expenses | |||||||||||
| Management fees (Note 3) | 1,990,185 | 1,932,718 | |||||||||
| Custodian fees | 125,974 | 141,597 | |||||||||
| Distribution fees (Open Shares) | 25,073 | 5,706 | |||||||||
| Administration fees | 44,877 | 47,160 | |||||||||
| Shareholders’ services | 19,002 | 16,338 | |||||||||
| Directors’ fees and expenses | 14,675 | 14,186 | |||||||||
| Registration fees | 29,409 | 30,413 | |||||||||
| Professional services | 48,680 | 61,018 | |||||||||
| Shareholders’ reports | 4,084 | 3,577 | |||||||||
| Amortization of offering costs (Note 2(f)) | — | 1,127 | |||||||||
| Other^ | 9,403 | 8,841 | |||||||||
| Total gross expenses | 2,311,362 | 2,262,681 | |||||||||
| Management fees waived and expenses reimbursed | (4,606 | ) | (5,187 | ) | |||||||
| Total net expenses | 2,306,756 | 2,257,494 | |||||||||
| Net investment income (loss) | 535,821 | 1,239,180 | |||||||||
| Net Realized and Unrealized Gain (Loss) | |||||||||||
| Net realized gain (loss) on: | |||||||||||
| Investments** | 2,276,071 | 9,849,069 | |||||||||
| Foreign currency transactions | (41,994 | ) | (116,375 | ) | |||||||
| Total net realized gain (loss) | 2,234,077 | 9,732,694 | |||||||||
| Net change in unrealized appreciation (depreciation) on: | |||||||||||
| Investments† | (23,291,498 | ) | (31,670,831 | ) | |||||||
| Foreign currency translations | (1,274 | ) | (2,380 | ) | |||||||
| Total net change in unrealized appreciation (depreciation) | (23,292,772 | ) | (31,673,211 | ) | |||||||
| Net realized and unrealized gain (loss) | (21,058,695 | ) | (21,940,517 | ) | |||||||
| Net increase (decrease) in net assets resulting from operations | $ | (20,522,874 | ) | $ | (20,701,337 | ) | |||||
| * | Net of foreign withholding taxes of | $ | 443,018 | $ | 471,817 | ||||||
| ** | Net of foreign capital gains taxes of | $ | 302,248 | $ | 25,896 | ||||||
| † | Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of | $ | (332,518 | ) | $ | (145,633 | ) | ||||
| ^ | Includes interest on line of credit of | $ | 717 | $ | 1,010 | ||||||
The accompanying notes are an integral part of these financial statements.
190 Annual Report
| Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio | Lazard Emerging Markets Strategic Equity Portfolio | Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | |||||||||||||||
| $ | 1,762,773 | $ | 165,860,647 | $ | 1,664,637 | $ | 2,040,952 | $ | 1,415,139 | ||||||||||
| — | — | 125,948 | 237,210 | — | |||||||||||||||
| 1,762,773 | 165,860,647 | 1,790,585 | 2,278,162 | 1,415,139 | |||||||||||||||
| 479,053 | 41,519,237 | 713,433 | 813,349 | 687,523 | |||||||||||||||
| 140,609 | 1,729,596 | 86,138 | 47,937 | 57,401 | |||||||||||||||
| 3,653 | 1,021,659 | 8,784 | 332 | 3,425 | |||||||||||||||
| 27,818 | 440,155 | 28,918 | 32,709 | 33,222 | |||||||||||||||
| 11,468 | 208,046 | 15,731 | 12,269 | 13,263 | |||||||||||||||
| 7,156 | 206,913 | 7,637 | 9,503 | 9,764 | |||||||||||||||
| 37,288 | 66,464 | 30,342 | 32,606 | 34,365 | |||||||||||||||
| 45,036 | 49,363 | 67,638 | 45,656 | 45,738 | |||||||||||||||
| 5,341 | — | — | 3,440 | 6,755 | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| 4,680 | 29,924 | 5,214 | 4,412 | 4,705 | |||||||||||||||
| 762,102 | 45,271,357 | 963,835 | 1,002,213 | 896,161 | |||||||||||||||
| (174,474 | ) | (3,185 | ) | (113,990 | ) | (34,978 | ) | (3,473 | ) | ||||||||||
| 587,628 | 45,268,172 | 849,845 | 967,235 | 892,688 | |||||||||||||||
| 1,175,145 | 120,592,475 | 940,740 | 1,310,927 | 522,451 | |||||||||||||||
| 3,814,624 | 458,524,873 | 10,054,743 | 17,446,224 | 3,097,992 | |||||||||||||||
| (80,625 | ) | (2,235,848 | ) | (91,255 | ) | (6,668 | ) | (4,324 | ) | ||||||||||
| 3,733,999 | 456,289,025 | 9,963,488 | 17,439,556 | 3,093,668 | |||||||||||||||
| (6,314,928 | ) | (330,798,664 | ) | (14,184,055 | ) | 1,978,263 | 15,159,139 | ||||||||||||
| (1,576 | ) | (32,340 | ) | 1,324 | (1,691 | ) | (1,692 | ) | |||||||||||
| (6,316,504 | ) | (330,831,004 | ) | (14,182,731 | ) | 1,976,572 | 15,157,447 | ||||||||||||
| (2,582,505 | ) | 125,458,021 | (4,219,243 | ) | 19,416,128 | 18,251,115 | |||||||||||||
| $ | (1,407,360 | ) | $ | 246,050,496 | $ | (3,278,503 | ) | $ | 20,727,055 | $ | 18,773,566 | ||||||||
| $ | 215,111 | $ | 24,015,808 | $ | 248,423 | $ | 120,367 | $ | 76,408 | ||||||||||
| $ | — | $ | 10,084,618 | $ | 275,757 | $ | — | $ | — | ||||||||||
| $ | — | $ | 1,761,733 | $ | 82,807 | $ | — | $ | — | ||||||||||
| $ | 572 | $ | 1,072 | $ | 1,100 | $ | 10 | $ | — | ||||||||||
Annual Report 191
| For the Year Ended December 31, 2021 | Lazard Global Listed Infrastructure Portfolio | Lazard Global Strategic Equity Portfolio |
|||||||||
| Investment Income (Loss) | |||||||||||
| Income | |||||||||||
| Dividends# | |||||||||||
| Unaffiliated issuers | $ | 196,791,283 | $ | 105,187 | |||||||
| Non-controlled affiliated issuers (Note 5) | 142,909,826 | — | |||||||||
| Non-cash income | 43,207,254 | 302,586 | |||||||||
| Total investment income* | 382,908,363 | 407,773 | |||||||||
| Expenses | |||||||||||
| Management fees (Note 3) | 71,573,295 | 104,741 | |||||||||
| Custodian fees | 1,340,661 | 43,595 | |||||||||
| Professional services | 749,564 | 41,986 | |||||||||
| Administration fees | 741,207 | 21,746 | |||||||||
| Distribution fees (Open Shares) | 734,790 | 529 | |||||||||
| Shareholders’ services | 485,537 | 8,860 | |||||||||
| Directors’ fees and expenses | 393,558 | 5,005 | |||||||||
| Shareholders’ reports | 355,363 | 4,069 | |||||||||
| Registration fees | 158,526 | 33,801 | |||||||||
| Other^ | 193,581 | 3,150 | |||||||||
| Total gross expenses | 76,726,082 | 267,482 | |||||||||
| Management fees waived and expenses reimbursed | — | (134,131 | ) | ||||||||
| Total net expenses | 76,726,082 | 133,351 | |||||||||
| Net investment income (loss) | 306,182,281 | 274,422 | |||||||||
| Net Realized and Unrealized Gain (Loss) | |||||||||||
| Net realized gain (loss) on: | |||||||||||
| Investments** | 256,723,104 | 448,541 | |||||||||
| Non-controlled affiliated issuers (Note 5) | (18,856,964 | ) | — | ||||||||
| Foreign currency transactions | (815,547 | ) | 1,996 | ||||||||
| Forward currency contracts | 325,748,503 | — | |||||||||
| Total net realized gain (loss) | 562,799,096 | 450,537 | |||||||||
| Net change in unrealized appreciation (depreciation) on: | |||||||||||
| Investments† | 634,101,636 | 1,113,010 | |||||||||
| Non-controlled affiliated issuers (Note 5) | (45,741,160 | ) | — | ||||||||
| Foreign currency translations | (354,644 | ) | (563 | ) | |||||||
| Forward currency contracts | (23,107,715 | ) | — | ||||||||
| Total net change in unrealized appreciation (depreciation) | 564,898,117 | 1,112,447 | |||||||||
| Net realized and unrealized gain (loss) | 1,127,697,213 | 1,562,984 | |||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 1,433,879,494 | $ | 1,837,406 | |||||||
| * | Net of foreign withholding taxes of | $ | (8,842,436 | ) | $ | 56,172 | |||||
| ** | Net of foreign capital gains taxes of | $ | — | $ | — | ||||||
| † | Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of | $ | — | $ | — | ||||||
| ^ | Includes interest on line of credit of | $ | — | $ | 24 | ||||||
| # | Dividend income for Lazard Global Listed Infrastructure Portfolio includes $20,893,921 of refunds received as a result of European Union dividend withholding tax reclaim filings. The amount of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $12,051,485. Refer to Note 2(b) in the Notes to Financial Statements for further information. | ||||||||||
The accompanying notes are an integral part of these financial statements.
192 Annual Report
| Lazard International Equity Advantage Portfolio | Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | Lazard International Equity Value Portfolio | Lazard International Quality Growth Portfolio | |||||||||||||||
| $ | 91,781 | $ | 76,606,517 | $ | 2,011,010 | $ | 70,899 | $ | 387,074 | ||||||||||
| — | — | — | — | — | |||||||||||||||
| 6,812 | 25,401,939 | 1,054,650 | 60,269 | 25,745 | |||||||||||||||
| 98,593 | 102,008,456 | 3,065,660 | 131,168 | 412,819 | |||||||||||||||
| 18,640 | 19,022,446 | 576,700 | 24,442 | 239,965 | |||||||||||||||
| 51,511 | 605,835 | 83,096 | 35,756 | 46,690 | |||||||||||||||
| 30,356 | 309,586 | 34,689 | 37,662 | 39,854 | |||||||||||||||
| 20,359 | 301,409 | 31,090 | 20,382 | 23,999 | |||||||||||||||
| 327 | 295,759 | 7,664 | 111 | 842 | |||||||||||||||
| 9,057 | 114,729 | 12,988 | 8,711 | 9,643 | |||||||||||||||
| 5,084 | 148,502 | 9,506 | 4,940 | 6,247 | |||||||||||||||
| 2,301 | 47,504 | 7,372 | 2,070 | — | |||||||||||||||
| 33,622 | 82,177 | 14,470 | 21,809 | 29,848 | |||||||||||||||
| 32 | 55,428 | 5,389 | 23 | 4,677 | |||||||||||||||
| 171,289 | 20,983,375 | 782,964 | 155,906 | 401,765 | |||||||||||||||
| (145,121 | ) | (16,669 | ) | (3,382 | ) | (126,745 | ) | (128,729 | ) | ||||||||||
| 26,168 | 20,966,706 | 779,582 | 29,161 | 273,036 | |||||||||||||||
| 72,425 | 81,041,750 | 2,286,078 | 102,007 | 139,783 | |||||||||||||||
| 363,757 | 390,110,348 | 4,425,352 | 331,454 | 1,132,874 | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| (438 | ) | (904,137 | ) | (19,542 | ) | (1,770 | ) | (18,273 | ) | ||||||||||
| — | — | — | — | — | |||||||||||||||
| 363,319 | 389,206,211 | 4,405,810 | 329,684 | 1,114,601 | |||||||||||||||
| (74,233 | ) | (306,584,875 | ) | (3,717,004 | ) | (224,293 | ) | 1,030,661 | |||||||||||
| — | — | — | — | — | |||||||||||||||
| (275 | ) | (338,118 | ) | (10,106 | ) | (965 | ) | (312 | ) | ||||||||||
| — | — | — | — | — | |||||||||||||||
| (74,508 | ) | (306,922,993 | ) | (3,727,110 | ) | (225,258 | ) | 1,030,349 | |||||||||||
| 288,811 | 82,283,218 | 678,700 | 104,426 | 2,144,950 | |||||||||||||||
| $ | 361,236 | $ | 163,324,968 | $ | 2,964,778 | $ | 206,433 | $ | 2,284,733 | ||||||||||
| $ | 9,503 | $ | (139,178 | ) | $ | 374,066 | $ | 8,527 | $ | 51,155 | |||||||||
| $ | — | $ | 109,751 | $ | — | $ | — | $ | — | ||||||||||
| $ | — | $ | (313,372 | ) | $ | (33,324 | ) | $ | — | $ | — | ||||||||
| $ | — | $ | 2,257 | $ | 174 | $ | — | $ | 4 | ||||||||||
| # | Dividend income for Lazard International Equity Portfolio includes $7,834,493 of refunds received as a result of European Union dividend withholding tax reclaim filings. The amount of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $7,695,315. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
Annual Report 193
| For the Year Ended December 31, 2021 | Lazard International Small Cap Equity Portfolio | Lazard International Strategic Equity Portfolio |
|||||||||
| Investment Income (Loss) | |||||||||||
| Income | |||||||||||
| Dividends# | $ | 874,314 | $ | 171,048,989 | |||||||
| Non-cash income | — | 82,783,363 | |||||||||
| Total investment income* | 874,314 | 253,832,352 | |||||||||
| Expenses | |||||||||||
| Management fees (Note 3) | 268,579 | 48,112,815 | |||||||||
| Custodian fees | 79,755 | 1,372,685 | |||||||||
| Distribution fees (Open Shares) | 33,090 | 1,289,155 | |||||||||
| Administration fees | 24,476 | 621,204 | |||||||||
| Professional services | 20,333 | 555,320 | |||||||||
| Directors’ fees and expenses | 6,929 | 313,542 | |||||||||
| Shareholders’ services | 9,890 | 282,731 | |||||||||
| Registration fees | 30,093 | 167,968 | |||||||||
| Shareholders’ reports | 1,681 | 33,893 | |||||||||
| Amortization of offering costs (Note 2(f)) | — | — | |||||||||
| Other^ | 5,447 | 166,655 | |||||||||
| Total gross expenses | 480,273 | 52,915,968 | |||||||||
| Management fees waived and expenses reimbursed | (45,841 | ) | (4,745 | ) | |||||||
| Total net expenses | 434,432 | 52,911,223 | |||||||||
| Net investment income (loss) | 439,882 | 200,921,129 | |||||||||
| Net Realized and Unrealized Gain (Loss) | |||||||||||
| Net realized gain (loss) on: | |||||||||||
| Investments** | 9,127,933 | 243,770,355 | |||||||||
| Foreign currency transactions | (20,077 | ) | (524,928 | ) | |||||||
| Total net realized gain (loss) | 9,107,856 | 243,245,427 | |||||||||
| Net change in unrealized appreciation (depreciation) on: | |||||||||||
| Investments† | (4,935,631 | ) | (100,057,604 | ) | |||||||
| Foreign currency translations | (4,470 | ) | (692,468 | ) | |||||||
| Total net change in unrealized appreciation (depreciation) | (4,940,101 | ) | (100,750,072 | ) | |||||||
| Net realized and unrealized gain (loss) | 4,167,755 | 142,495,355 | |||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 4,607,637 | $ | 343,416,484 | |||||||
| * | Net of foreign withholding taxes of | $ | 66,298 | $ | (7,630,935 | ) | |||||
| ** | Net of foreign capital gains taxes of | $ | 8,681 | $ | 13,560 | ||||||
| † | Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of | $ | 8,994 | $ | 167,964 | ||||||
| ^ | Includes interest on line of credit of | $ | 187 | $ | — | ||||||
| # | Dividend income for Lazard International Small Cap Equity Portfolio and Lazard International Strategic Equity Portfolio includes $61,281 and $21,085,000, respectively, of refunds received as a result of European Union dividend withholding tax reclaim filings. The amounts of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $127,579 and $13,454,065, respectively. Refer to Note 2(b) in the Notes to Financial Statements for further information. | ||||||||||
The accompanying notes are an integral part of these financial statements.
194 Annual Report
| Lazard Managed Equity Volatility Portfolio | Lazard US Equity Concentrated Portfolio | Lazard US Equity Focus Portfolio | Lazard US Small-Mid Cap Equity Portfolio | Lazard US Sustainable Equity Portfolio | |||||||||||||||
| $ | 666,580 | $ | 22,207,776 | $ | 870,036 | $ | 1,115,446 | $ | 160,173 | ||||||||||
| — | — | — | — | — | |||||||||||||||
| 666,580 | 22,207,776 | 870,036 | 1,115,446 | 160,173 | |||||||||||||||
| 168,221 | 13,644,306 | 388,332 | 851,316 | 81,262 | |||||||||||||||
| 56,236 | 235,497 | 44,877 | 65,294 | 32,881 | |||||||||||||||
| 202 | 90,030 | 3,640 | 29,518 | 1,017 | |||||||||||||||
| 23,505 | 242,920 | 31,827 | 37,189 | 21,694 | |||||||||||||||
| 37,487 | 163,951 | 15,928 | 40,869 | 26,629 | |||||||||||||||
| 5,788 | 100,058 | 6,221 | 10,164 | 5,610 | |||||||||||||||
| 9,814 | 100,200 | 12,240 | 15,202 | 7,510 | |||||||||||||||
| 32,991 | 77,682 | 31,775 | 39,343 | 34,167 | |||||||||||||||
| 3,113 | 129,393 | 5,180 | 4,137 | 8,211 | |||||||||||||||
| — | — | — | 10,707 | 65,721 | |||||||||||||||
| 3,958 | 50,791 | 5,399 | 5,058 | 829 | |||||||||||||||
| 341,315 | 14,834,828 | 545,419 | 1,108,797 | 285,531 | |||||||||||||||
| (129,981 | ) | (2,912 | ) | (46,799 | ) | (12,586 | ) | (182,936 | ) | ||||||||||
| 211,334 | 14,831,916 | 498,620 | 1,096,211 | 102,595 | |||||||||||||||
| 455,246 | 7,375,860 | 371,416 | 19,235 | 57,578 | |||||||||||||||
| 2,838,546 | 298,140,654 | 2,732,490 | 22,249,252 | 259,323 | |||||||||||||||
| (1,285 | ) | — | — | — | — | ||||||||||||||
| 2,837,261 | 298,140,654 | 2,732,490 | 22,249,252 | 259,323 | |||||||||||||||
| 1,447,818 | 140,441,179 | 13,333,759 | (2,365,273 | ) | 3,120,821 | ||||||||||||||
| (1,226 | ) | — | — | — | — | ||||||||||||||
| 1,446,592 | 140,441,179 | 13,333,759 | (2,365,273 | ) | 3,120,821 | ||||||||||||||
| 4,283,853 | 438,581,833 | 16,066,249 | 19,883,979 | 3,380,144 | |||||||||||||||
| $ | 4,739,099 | $ | 445,957,693 | $ | 16,437,665 | $ | 19,903,214 | $ | 3,437,722 | ||||||||||
| $ | 42,904 | $ | — | $ | — | $ | — | $ | — | ||||||||||
| $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
| $ | 505 | $ | 1,063 | $ | 9 | $ | — | $ | — | ||||||||||
Annual Report 195
| For the Year Ended December 31, 2021 | Lazard US Systematic Small Cap Equity Portfolio (a) | |||||
| Investment Income (Loss) | ||||||
| Income | ||||||
| Dividends | $ | 13,504 | ||||
| Non-cash income | 766 | |||||
| Total investment income* | 14,270 | |||||
| Expenses | ||||||
| Amortization of offering costs (Note 2(f)) | 22,299 | |||||
| Professional services | 21,500 | |||||
| Custodian fees | 7,000 | |||||
| Management fees (Note 3) | 4,357 | |||||
| Shareholders’ reports | 4,203 | |||||
| Administration fees | 3,446 | |||||
| Shareholders’ services | 3,100 | |||||
| Registration fees | 3,025 | |||||
| Directors’ fees and expenses | 879 | |||||
| Organization expenses (Note 2(f)) | 660 | |||||
| Distribution fees (Open Shares) | 48 | |||||
| Total gross expenses | 70,517 | |||||
| Management fees waived and expenses reimbursed | (64,867 | ) | ||||
| Total net expenses | 5,650 | |||||
| Net investment income (loss) | 8,620 | |||||
| Net Realized and Unrealized Gain (Loss) | ||||||
| Net realized gain (loss) on Investments | 11,440 | |||||
| Total net realized gain (loss) | 11,440 | |||||
| Net change in unrealized appreciation (depreciation) on investments | 61,890 | |||||
| Total net change in unrealized appreciation (depreciation) | 61,890 | |||||
| Net realized and unrealized gain (loss) | 73,330 | |||||
| Net increase (decrease) in net assets resulting from operations | $ | 81,950 | ||||
| * | Net of foreign withholding taxes of | $ | 247 | |||
| (a) | From the Portfolio’s commencement of operations on October 29, 2021 |
The accompanying notes are an integral part of these financial statements.
196 Annual Report
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Annual Report 197
The Lazard Funds, Inc. Statements of Changes in Net Assets
| Lazard | |||||||||
| Developing Markets Equity Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 535,821 | $ | 575,171 | |||||
| Net realized gain (loss) | 2,234,077 | 930,466 | |||||||
| Net change in unrealized appreciation (depreciation) | (23,292,772 | ) | 19,662,599 | ||||||
| Net increase (decrease) in net assets resulting from operations | (20,522,874 | ) | 21,168,236 | ||||||
| Distributions to shareholders (Note 2(e)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (1,516,068 | ) | (500,286 | ) | |||||
| Open Shares | (70,702 | ) | (23,947 | ) | |||||
| R6 Shares | — | — | |||||||
| Net decrease in net assets resulting from distributions | (1,586,770 | ) | (524,233 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 52,260,422 | 33,579,728 | |||||||
| Open Shares | 4,865,685 | 3,336,260 | |||||||
| R6 Shares | — | — | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 1,208,264 | 389,550 | |||||||
| Open Shares | 62,092 | 21,686 | |||||||
| R6 Shares | — | — | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (74,730,015 | ) | (88,565,915 | ) | |||||
| Open Shares | (4,547,349 | ) | (4,209,453 | ) | |||||
| R6 Shares | — | — | |||||||
| Net increase (decrease) in net assets from capital stock transactions | (20,880,901 | ) | (55,448,144 | ) | |||||
| Total increase (decrease) in net assets | (42,990,545 | ) | (34,804,141 | ) | |||||
| Net assets at beginning of period | 200,603,376 | 235,407,517 | |||||||
| Net assets at end of period | $ | 157,612,831 | $ | 200,603,376 | |||||
The accompanying notes are an integral part of these financial statements.
198 Annual Report
| Lazard Emerging | Lazard Emerging | |||||||||||||||
| Markets Core Equity Portfolio | Markets Equity Advantage Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| $ | 1,239,180 | $ | 1,250,970 | $ | 1,175,145 | $ | 158,883 | |||||||||
| 9,732,694 | (15,263,829 | ) | 3,733,999 | 861,107 | ||||||||||||
| (31,673,211 | ) | 36,380,293 | (6,316,504 | ) | 4,663,904 | |||||||||||
| (20,701,337 | ) | 22,367,434 | (1,407,360 | ) | 5,683,894 | |||||||||||
| (1,210,128 | ) | (1,248,908 | ) | (5,115,729 | ) | (250,704 | ) | |||||||||
| (9,228 | ) | (6,940 | ) | (118,907 | ) | (6,176 | ) | |||||||||
| (3,617 | ) | (3,206 | ) | — | — | |||||||||||
| (1,222,973 | ) | (1,259,054 | ) | (5,234,636 | ) | (256,880 | ) | |||||||||
| 50,845,441 | 53,105,750 | 47,141,565 | 17,937,030 | |||||||||||||
| 2,306,794 | 1,691,273 | 4,665,435 | 608,209 | |||||||||||||
| 36,357 | 62,330 | — | — | |||||||||||||
| 1,162,680 | 1,200,626 | 5,115,729 | 250,704 | |||||||||||||
| 8,896 | 6,902 | 118,907 | 6,176 | |||||||||||||
| 3,617 | 3,206 | — | — | |||||||||||||
| (83,623,051 | ) | (62,957,718 | ) | (4,956,704 | ) | (4,770,498 | ) | |||||||||
| (2,488,441 | ) | (1,705,658 | ) | (4,699,211 | ) | (1,037,074 | ) | |||||||||
| (211,190 | ) | (158,910 | ) | — | — | |||||||||||
| (31,958,897 | ) | (8,752,199 | ) | 47,385,721 | 12,994,547 | |||||||||||
| (53,883,207 | ) | 12,356,181 | 40,743,725 | 18,421,561 | ||||||||||||
| 212,590,855 | 200,234,674 | 28,773,576 | 10,352,015 | |||||||||||||
| $ | 158,707,648 | $ | 212,590,855 | $ | 69,517,301 | $ | 28,773,576 | |||||||||
Annual Report 199
| Lazard | |||||||||
| Developing Markets Equity Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 11,013,865 | 15,534,848 | |||||||
| Shares sold | 2,988,029 | 2,536,944 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 78,503 | 27,818 | |||||||
| Shares redeemed | (4,442,465 | ) | (7,085,745 | ) | |||||
| Net increase (decrease) | (1,375,933 | ) | (4,520,983 | ) | |||||
| Shares outstanding at end of period | 9,637,932 | 11,013,865 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 575,985 | 643,853 | |||||||
| Shares sold | 295,291 | 242,484 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 4,053 | 1,556 | |||||||
| Shares redeemed | (274,795 | ) | (311,908 | ) | |||||
| Net increase (decrease) | 24,549 | (67,868 | ) | ||||||
| Shares outstanding at end of period | 600,534 | 575,985 | |||||||
| R6 Shares | |||||||||
| Shares outstanding at beginning of period | — | — | |||||||
| Shares sold | — | — | |||||||
| Shares issued to shareholders from reinvestment of distributions | — | — | |||||||
| Shares redeemed | — | — | |||||||
| Net increase (decrease) | — | — | |||||||
| Shares outstanding at end of period | — | — | |||||||
The accompanying notes are an integral part of these financial statements.
200 Annual Report
| Lazard Emerging | Lazard Emerging | |||||||||||||||
| Markets Core Equity Portfolio | Markets Equity Advantage Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| 15,971,095 | 16,728,969 | 2,022,986 | 775,852 | |||||||||||||
| 3,931,923 | 5,299,853 | 3,256,474 | 1,609,818 | |||||||||||||
| 100,591 | 95,867 | 397,695 | 19,017 | |||||||||||||
| (6,482,959 | ) | (6,153,594 | ) | (354,703 | ) | (381,701 | ) | |||||||||
| (2,450,445 | ) | (757,874 | ) | 3,299,466 | 1,247,134 | |||||||||||
| 13,520,650 | 15,971,095 | 5,322,452 | 2,022,986 | |||||||||||||
| 194,354 | 206,183 | 63,491 | 98,083 | |||||||||||||
| 176,646 | 152,220 | 329,650 | 58,240 | |||||||||||||
| 768 | 559 | 9,268 | 469 | |||||||||||||
| (188,578 | ) | (164,608 | ) | (326,388 | ) | (93,301 | ) | |||||||||
| (11,164 | ) | (11,829 | ) | 12,530 | (34,592 | ) | ||||||||||
| 183,190 | 194,354 | 76,021 | 63,491 | |||||||||||||
| 41,454 | 50,582 | — | — | |||||||||||||
| 2,728 | 5,652 | — | — | |||||||||||||
| 313 | 255 | — | — | |||||||||||||
| (17,630 | ) | (15,035 | ) | — | — | |||||||||||
| (14,589 | ) | (9,128 | ) | — | — | |||||||||||
| 26,865 | 41,454 | — | — | |||||||||||||
Annual Report 201
| Lazard Emerging | |||||||||
| Markets Equity Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 120,592,475 | $ | 119,586,487 | |||||
| Net realized gain (loss) | 456,289,025 | (426,812,130 | ) | ||||||
| Net change in unrealized appreciation (depreciation) | (330,831,004 | ) | (347,937,082 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | 246,050,496 | (655,162,725 | ) | ||||||
| Distributions to shareholders (Note 2(e)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (159,751,886 | ) | (92,081,985 | ) | |||||
| Open Shares | (16,684,053 | ) | (8,363,930 | ) | |||||
| R6 Shares | (689,358 | ) | (1,004,977 | ) | |||||
| Net decrease in net assets resulting from distributions | (177,125,297 | ) | (101,450,892 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 956,710,099 | 846,924,581 | |||||||
| Open Shares | 68,488,391 | 40,640,285 | |||||||
| R6 Shares | 3,700,364 | 14,719,078 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 151,053,474 | 88,030,506 | |||||||
| Open Shares | 16,468,567 | 8,264,600 | |||||||
| R6 Shares | 299,282 | 847,221 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (1,822,322,913 | ) | (3,083,569,274 | ) | |||||
| Open Shares | (141,191,852 | ) | (453,247,114 | ) | |||||
| R6 Shares | (18,710,896 | ) | (135,610,119 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | (785,505,484 | ) | (2,673,000,236 | ) | |||||
| Total increase (decrease) in net assets | (716,580,285 | ) | (3,429,613,853 | ) | |||||
| Net assets at beginning of period | 4,369,498,265 | 7,799,112,118 | |||||||
| Net assets at end of period | $ | 3,652,917,980 | $ | 4,369,498,265 | |||||
The accompanying notes are an integral part of these financial statements.
202 Annual Report
| Lazard Emerging Markets | ||||||||||||||||
| Strategic Equity Portfolio | Lazard Equity Franchise Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| $ | 940,740 | $ | 903,767 | $ | 1,310,927 | $ | 616,928 | |||||||||
| 9,963,488 | (2,308,597 | ) | 17,439,556 | (1,412,138 | ) | |||||||||||
| (14,182,731 | ) | 7,730,722 | 1,976,572 | 12,204,242 | ||||||||||||
| (3,278,503 | ) | 6,325,892 | 20,727,055 | 11,409,032 | ||||||||||||
| (721,332 | ) | (902,733 | ) | (14,253,601 | ) | (1,012,397 | ) | |||||||||
| (29,982 | ) | (38,967 | ) | (15,148 | ) | (1,121 | ) | |||||||||
| — | — | — | — | |||||||||||||
| (751,314 | ) | (941,700 | ) | (14,268,749 | ) | (1,013,518 | ) | |||||||||
| 8,602,187 | 13,037,212 | 8,142,721 | 66,915,810 | |||||||||||||
| 999,414 | 447,062 | 89,499 | 33,698 | |||||||||||||
| — | — | — | — | |||||||||||||
| 707,559 | 889,530 | 14,253,601 | 1,012,397 | |||||||||||||
| 29,167 | 38,190 | 15,148 | 1,121 | |||||||||||||
| — | — | — | — | |||||||||||||
| (22,613,433 | ) | (41,254,117 | ) | (15,135,877 | ) | (26,514,732 | ) | |||||||||
| (1,902,152 | ) | (2,493,332 | ) | (151,272 | ) | (183,641 | ) | |||||||||
| — | — | — | — | |||||||||||||
| (14,177,258 | ) | (29,335,455 | ) | 7,213,820 | 41,264,653 | |||||||||||
| (18,207,075 | ) | (23,951,263 | ) | 13,672,126 | 51,660,167 | |||||||||||
| 78,424,875 | 102,376,138 | 91,849,445 | 40,189,278 | |||||||||||||
| $ | 60,217,800 | $ | 78,424,875 | $ | 105,521,571 | $ | 91,849,445 | |||||||||
Annual Report 203
| Lazard Emerging | |||||||||
| Markets Equity Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 217,598,338 | 359,649,575 | |||||||
| Shares sold | 50,172,346 | 55,904,093 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 8,290,244 | 5,536,608 | |||||||
| Shares redeemed | (95,562,695 | ) | (203,491,938 | ) | |||||
| Net increase (decrease) | (37,100,105 | ) | (142,051,237 | ) | |||||
| Shares outstanding at end of period | 180,498,233 | 217,598,338 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 22,707,741 | 50,941,578 | |||||||
| Shares sold | 3,539,036 | 2,571,349 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 876,315 | 509,353 | |||||||
| Shares redeemed | (7,237,709 | ) | (31,314,539 | ) | |||||
| Net increase (decrease) | (2,822,358 | ) | (28,233,837 | ) | |||||
| Shares outstanding at end of period | 19,885,383 | 22,707,741 | |||||||
| R6 Shares | |||||||||
| Shares outstanding at beginning of period | 1,310,139 | 9,977,898 | |||||||
| Shares sold | 196,315 | 1,007,773 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 16,436 | 54,837 | |||||||
| Shares redeemed | (978,080 | ) | (9,730,369 | ) | |||||
| Net increase (decrease) | (765,329 | ) | (8,667,759 | ) | |||||
| Shares outstanding at end of period | 544,810 | 1,310,139 | |||||||
The accompanying notes are an integral part of these financial statements.
204 Annual Report
| Lazard Emerging Markets | ||||||||||||||||
| Strategic Equity Portfolio | Lazard Equity Franchise Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| 5,390,573 | 7,913,478 | 9,016,463 | 3,919,193 | |||||||||||||
| 616,289 | 1,164,850 | 719,088 | 8,314,466 | |||||||||||||
| 55,484 | 67,134 | 1,336,289 | 102,163 | |||||||||||||
| (1,611,972 | ) | (3,754,889 | ) | (1,291,395 | ) | (3,319,359 | ) | |||||||||
| (940,199 | ) | (2,522,905 | ) | 763,982 | 5,097,270 | |||||||||||
| 4,450,374 | 5,390,573 | 9,780,445 | 9,016,463 | |||||||||||||
| 290,075 | 488,799 | 12,708 | 30,624 | |||||||||||||
| 70,220 | 37,429 | 7,463 | 4,284 | |||||||||||||
| 2,278 | 2,871 | 1,421 | 113 | |||||||||||||
| (134,270 | ) | (239,024 | ) | (12,971 | ) | (22,313 | ) | |||||||||
| (61,772 | ) | (198,724 | ) | (4,087 | ) | (17,916 | ) | |||||||||
| 228,303 | 290,075 | 8,621 | 12,708 | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
Annual Report 205
| Lazard Global Equity Select Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 522,451 | $ | 317,684 | |||||
| Net realized gain (loss) | 3,093,668 | 9,730,399 | |||||||
| Net change in unrealized appreciation (depreciation) | 15,157,447 | 8,086,380 | |||||||
| Net increase (decrease) in net assets resulting from operations | 18,773,566 | 18,134,463 | |||||||
| Distributions to shareholders (Note 2(e)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (4,303,883 | ) | (3,043,294 | ) | |||||
| Open Shares | (58,304 | ) | (35,091 | ) | |||||
| Return of capital | |||||||||
| Institutional Shares | — | — | |||||||
| Open Shares | — | — | |||||||
| Net decrease in net assets resulting from distributions | (4,362,187 | ) | (3,078,385 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 15,911,457 | 57,343,908 | |||||||
| Open Shares | 421,016 | 414,176 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 4,260,522 | 3,031,617 | |||||||
| Open Shares | 58,304 | 35,091 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (16,880,543 | ) | (64,939,018 | ) | |||||
| Open Shares | (271,978 | ) | (355,466 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | 3,498,778 | (4,469,692 | ) | ||||||
| Total increase (decrease) in net assets | 17,910,157 | 10,586,386 | |||||||
| Net assets at beginning of period | 93,575,829 | 82,989,443 | |||||||
| Net assets at end of period | $ | 111,485,986 | $ | 93,575,829 | |||||
The accompanying notes are an integral part of these financial statements.
206 Annual Report
| Lazard Global | Lazard Global | |||||||||||||||
| Listed Infrastructure Portfolio | Strategic Equity Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| $ | 306,182,281 | $ | 136,832,780 | $ | 274,422 | $ | 7,620 | |||||||||
| 562,799,096 | (241,911,502 | ) | 450,537 | 174,646 | ||||||||||||
| 564,898,117 | (320,607,336 | ) | 1,112,447 | 562,865 | ||||||||||||
| 1,433,879,494 | (425,686,058 | ) | 1,837,406 | 745,131 | ||||||||||||
| (445,280,768 | ) | (146,650,767 | ) | (723,599 | ) | (123,283 | ) | |||||||||
| (17,469,224 | ) | (7,331,111 | ) | (8,321 | ) | (5,397 | ) | |||||||||
| — | (34,264,854 | ) | — | — | ||||||||||||
| — | (1,712,909 | ) | — | — | ||||||||||||
| (462,749,992 | ) | (189,959,641 | ) | (731,920 | ) | (128,680 | ) | |||||||||
| 2,105,406,878 | 2,811,013,767 | 13,182,269 | 253,851 | |||||||||||||
| 45,133,550 | 97,410,328 | 39,814 | 23,248 | |||||||||||||
| 367,039,859 | 137,048,805 | 723,599 | 123,283 | |||||||||||||
| 17,173,844 | 8,929,119 | 8,321 | 5,397 | |||||||||||||
| (3,390,031,626 | ) | (2,357,774,296 | ) | (1,562,222 | ) | (77,247 | ) | |||||||||
| (104,401,284 | ) | (209,443,477 | ) | (45,662 | ) | (13,133 | ) | |||||||||
| (959,678,779 | ) | 487,184,246 | 12,346,119 | 315,399 | ||||||||||||
| 11,450,723 | (128,461,453 | ) | 13,451,605 | 931,850 | ||||||||||||
| 7,597,437,005 | 7,725,898,458 | 4,260,308 | 3,328,458 | |||||||||||||
| $ | 7,608,887,728 | $ | 7,597,437,005 | $ | 17,711,913 | $ | 4,260,308 | |||||||||
Annual Report 207
| Lazard Global Equity Select Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 5,662,503 | 5,634,353 | |||||||
| Shares sold | 893,399 | 4,228,592 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 230,274 | 188,886 | |||||||
| Shares redeemed | (928,697 | ) | (4,389,328 | ) | |||||
| Net increase (decrease) | 194,976 | 28,150 | |||||||
| Shares outstanding at end of period | 5,857,479 | 5,662,503 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 70,899 | 64,021 | |||||||
| Shares sold | 22,810 | 28,090 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 3,150 | 2,185 | |||||||
| Shares redeemed | (14,680 | ) | (23,397 | ) | |||||
| Net increase (decrease) | 11,280 | 6,878 | |||||||
| Shares outstanding at end of period | 82,179 | 70,899 | |||||||
| * | Shares and shares transactions were adjusted to reflect 1:5 reverse stock split effective November 17, 2020. |
The accompanying notes are an integral part of these financial statements.
208 Annual Report
| Lazard Global | Lazard Global | |||||||||||||||
| Listed Infrastructure Portfolio | Strategic Equity Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| 497,500,386 | 461,276,357 | 336,354 | 309,023 | * | ||||||||||||
| 135,453,262 | 194,182,619 | 1,024,819 | 24,511 | * | ||||||||||||
| 22,720,015 | 10,363,887 | 54,298 | 10,552 | * | ||||||||||||
| (212,753,106 | ) | (168,322,477 | ) | (118,108 | ) | (7,732 | )* | |||||||||
| (54,579,829 | ) | 36,224,029 | 961,009 | 27,331 | * | |||||||||||
| 442,920,557 | 497,500,386 | 1,297,363 | 336,354 | * | ||||||||||||
| 20,993,761 | 28,396,647 | 15,347 | 14,046 | * | ||||||||||||
| 2,904,083 | 6,691,684 | 3,136 | 2,123 | * | ||||||||||||
| 1,061,731 | 677,742 | 630 | 466 | * | ||||||||||||
| (6,765,298 | ) | (14,772,312 | ) | (3,400 | ) | (1,288 | )* | |||||||||
| (2,799,484 | ) | (7,402,886 | ) | 366 | 1,301 | * | ||||||||||
| 18,194,277 | 20,993,761 | 15,713 | 15,347 | |||||||||||||
Annual Report 209
| Lazard International | |||||||||
| Equity Advantage Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 72,425 | $ | 50,787 | |||||
| Net realized gain (loss) | 363,319 | (134,244 | ) | ||||||
| Net change in unrealized appreciation (depreciation) | (74,508 | ) | 211,107 | ||||||
| Net increase (decrease) in net assets resulting from operations | 361,236 | 127,650 | |||||||
| Distributions to shareholders (Note 2(e)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (136,304 | ) | (48,006 | ) | |||||
| Open Shares | (6,138 | ) | (2,025 | ) | |||||
| R6 Shares | — | — | |||||||
| Net decrease in net assets resulting from distributions | (142,442 | ) | (50,031 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 40,901 | — | |||||||
| Open Shares | 5 | — | |||||||
| R6 Shares | — | — | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 136,304 | 48,006 | |||||||
| Open Shares | 6,138 | 2,025 | |||||||
| R6 Shares | — | — | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (3,098 | ) | (57,767 | ) | |||||
| Open Shares | (5 | ) | — | ||||||
| R6 Shares | — | — | |||||||
| Net increase (decrease) in net assets from capital stock transactions | 180,245 | (7,736 | ) | ||||||
| Total increase (decrease) in net assets | 399,039 | 69,883 | |||||||
| Net assets at beginning of period | 2,591,090 | 2,521,207 | |||||||
| Net assets at end of period | $ | 2,990,129 | $ | 2,591,090 | |||||
The accompanying notes are an integral part of these financial statements.
210 Annual Report
| Lazard International | Lazard International | |||||||||||||||
| Equity Portfolio | Equity Select Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| $ | 81,041,750 | $ | 31,982,942 | $ | 2,286,078 | $ | 937,142 | |||||||||
| 389,206,211 | (22,368,369 | ) | 4,405,810 | (1,780,411 | ) | |||||||||||
| (306,922,993 | ) | 259,570,688 | (3,727,110 | ) | 7,062,981 | |||||||||||
| 163,324,968 | 269,185,261 | 2,964,778 | 6,219,712 | |||||||||||||
| (253,995,902 | ) | (28,031,055 | ) | (2,615,190 | ) | (898,108 | ) | |||||||||
| (15,297,137 | ) | (2,010,258 | ) | (123,856 | ) | (20,139 | ) | |||||||||
| (17,839,297 | ) | (1,244,237 | ) | — | — | |||||||||||
| (287,132,336 | ) | (31,285,550 | ) | (2,739,046 | ) | (918,247 | ) | |||||||||
| 383,144,673 | 829,447,085 | 18,472,160 | 23,196,482 | |||||||||||||
| 21,198,302 | 52,835,440 | 3,372,556 | 1,529,531 | |||||||||||||
| 42,310,511 | 55,056,018 | — | — | |||||||||||||
| 213,278,530 | 25,025,241 | 2,516,085 | 874,186 | |||||||||||||
| 11,284,238 | 1,799,295 | 122,927 | 19,885 | |||||||||||||
| 17,766,875 | 1,241,734 | — | — | |||||||||||||
| (1,737,109,035 | ) | (749,116,212 | ) | (34,552,279 | ) | (30,557,726 | ) | |||||||||
| (51,535,133 | ) | (206,597,466 | ) | (2,198,410 | ) | (1,462,806 | ) | |||||||||
| (62,688,011 | ) | (44,843,974 | ) | — | — | |||||||||||
| (1,162,349,050 | ) | (35,152,839 | ) | (12,266,961 | ) | (6,400,448 | ) | |||||||||
| (1,286,156,418 | ) | 202,746,872 | (12,041,229 | ) | (1,098,983 | ) | ||||||||||
| 3,062,650,113 | 2,859,903,241 | 94,988,838 | 96,087,821 | |||||||||||||
| $ | 1,776,493,695 | $ | 3,062,650,113 | $ | 82,947,609 | $ | 94,988,838 | |||||||||
Annual Report 211
| Lazard International | |||||||||
| Equity Advantage Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 239,526 | 241,125 | |||||||
| Shares sold | 3,462 | — | |||||||
| Shares issued to shareholders from reinvestment of distributions | 12,333 | 4,784 | |||||||
| Shares redeemed | (270 | ) | (6,383 | ) | |||||
| Net increase (decrease) | 15,525 | (1,599 | ) | ||||||
| Shares outstanding at end of period | 255,051 | 239,526 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 11,520 | 11,318 | |||||||
| Shares sold | — | # | — | ||||||
| Shares issued to shareholders from reinvestment of distributions | 555 | 202 | |||||||
| Shares redeemed | — | # | — | ||||||
| Net increase (decrease) | 555 | 202 | |||||||
| Shares outstanding at end of period | 12,075 | 11,520 | |||||||
| R6 Shares | |||||||||
| Shares outstanding at beginning of period | — | — | |||||||
| Shares sold | — | — | |||||||
| Shares issued to shareholders from reinvestment of distributions | — | — | |||||||
| Shares redeemed | — | — | |||||||
| Net increase (decrease) | — | — | |||||||
| Shares outstanding at end of period | — | — | |||||||
| # | Shares values are less than 1 |
The accompanying notes are an integral part of these financial statements.
212 Annual Report
| Lazard International | Lazard International | |||||||||||||||
| Equity Portfolio | Equity Select Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| 140,490,643 | 134,082,503 | 7,993,045 | 8,707,246 | |||||||||||||
| 18,535,338 | 50,874,540 | 1,557,162 | 2,451,854 | |||||||||||||
| 11,911,077 | 1,327,534 | 221,097 | 77,913 | |||||||||||||
| (83,799,343 | ) | (45,793,934 | ) | (2,924,834 | ) | (3,243,968 | ) | |||||||||
| (53,352,928 | ) | 6,408,140 | (1,146,575 | ) | (714,201 | ) | ||||||||||
| 87,137,715 | 140,490,643 | 6,846,470 | 7,993,045 | |||||||||||||
| 5,960,372 | 13,658,790 | 247,615 | 231,629 | |||||||||||||
| 1,039,570 | 3,165,143 | 286,138 | 156,101 | |||||||||||||
| 621,271 | 95,416 | 10,745 | 1,763 | |||||||||||||
| (2,506,632 | ) | (10,958,977 | ) | (184,303 | ) | (141,878 | ) | |||||||||
| (845,791 | ) | (7,698,418 | ) | 112,580 | 15,986 | |||||||||||
| 5,114,581 | 5,960,372 | 360,195 | 247,615 | |||||||||||||
| 6,473,822 | 5,788,801 | — | — | |||||||||||||
| 2,031,145 | 3,191,487 | — | — | |||||||||||||
| 995,068 | 65,933 | — | — | |||||||||||||
| (3,027,600 | ) | (2,572,399 | ) | — | — | |||||||||||
| (1,387 | ) | 685,021 | — | — | ||||||||||||
| 6,472,435 | 6,473,822 | — | — | |||||||||||||
Annual Report 213
| Lazard | |||||||||
| International Equity Value Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 102,007 | $ | 47,772 | |||||
| Net realized gain (loss) | 329,684 | 10,261 | |||||||
| Net change in unrealized appreciation (depreciation) | (225,258 | ) | (296,859 | ) | |||||
| Net increase from payments by affiliates | — | 88,959 | |||||||
| Net increase (decrease) in net assets resulting from operations | 206,433 | (149,867 | ) | ||||||
| Distributions to shareholders (Note 2(e)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (135,040 | ) | (58,054 | ) | |||||
| Open Shares | (1,822 | ) | (741 | ) | |||||
| Net decrease in net assets resulting from distributions | (136,862 | ) | (58,795 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 216,550 | 2,686,850 | |||||||
| Open Shares | 2,783 | 9,981 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 135,040 | 58,054 | |||||||
| Open Shares | 1,790 | 680 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (173,491 | ) | (12,992,331 | ) | |||||
| Open Shares | (4,462 | ) | (77,178 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | 178,210 | (10,313,944 | ) | ||||||
| Total increase (decrease) in net assets | 247,781 | (10,522,606 | ) | ||||||
| Net assets at beginning of period | 2,750,897 | 13,273,503 | |||||||
| Net assets at end of period | $ | 2,998,678 | $ | 2,750,897 | |||||
The accompanying notes are an integral part of these financial statements.
214 Annual Report
| Lazard | Lazard | |||||||||||||||
| International Quality Growth Portfolio | International Small Cap Equity Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| $ | 139,783 | $ | 13,507 | $ | 439,882 | $ | 216,390 | |||||||||
| 1,114,601 | 89,062 | 9,107,856 | 547,329 | |||||||||||||
| 1,030,349 | 1,555,029 | (4,940,101 | ) | 2,270,963 | ||||||||||||
| — | — | — | — | |||||||||||||
| 2,284,733 | 1,657,598 | 4,607,637 | 3,034,682 | |||||||||||||
| (1,250,451 | ) | (84,866 | ) | (4,264,944 | ) | (729,812 | ) | |||||||||
| (6,304 | ) | (2,354 | ) | (3,483,346 | ) | (274,269 | ) | |||||||||
| (1,256,755 | ) | (87,220 | ) | (7,748,290 | ) | (1,004,081 | ) | |||||||||
| 50,450,611 | 5,094,900 | 4,617,643 | 6,686,012 | |||||||||||||
| 94,898 | 265,673 | 1,560,153 | 1,357,370 | |||||||||||||
| 1,250,451 | 84,866 | 4,244,754 | 728,414 | |||||||||||||
| 6,304 | 2,354 | 3,417,384 | 269,502 | |||||||||||||
| (713,404 | ) | (208,991 | ) | (22,623,777 | ) | (17,662,848 | ) | |||||||||
| (79,883 | ) | (12,636 | ) | (3,519,994 | ) | (8,911,562 | ) | |||||||||
| 51,008,977 | 5,226,166 | (12,303,837 | ) | (17,533,112 | ) | |||||||||||
| 52,036,955 | 6,796,544 | (15,444,490 | ) | (15,502,511 | ) | |||||||||||
| 10,764,251 | 3,967,707 | 41,955,188 | 57,457,699 | |||||||||||||
| $ | 62,801,206 | $ | 10,764,251 | $ | 26,510,698 | $ | 41,955,188 | |||||||||
Annual Report 215
| Lazard | |||||||||
| International Equity Value Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 289,650 | 1,319,964 | |||||||
| Shares sold | 21,167 | 273,087 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 14,158 | 6,508 | |||||||
| Shares redeemed | (17,385 | ) | (1,309,909 | ) | |||||
| Net increase (decrease) | 17,940 | (1,030,314 | ) | ||||||
| Shares outstanding at end of period | 307,590 | 289,650 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 4,300 | 14,189 | |||||||
| Shares sold | 278 | 1,262 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 188 | 76 | |||||||
| Shares redeemed | (444 | ) | (11,227 | ) | |||||
| Net increase (decrease) | 22 | (9,889 | ) | ||||||
| Shares outstanding at end of period | 4,322 | 4,300 | |||||||
The accompanying notes are an integral part of these financial statements.
216 Annual Report
| Lazard | Lazard | |||||||||||||||
| International Quality Growth Portfolio | International Small Cap Equity Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| 671,884 | 311,939 | 2,175,223 | 3,090,617 | |||||||||||||
| 3,014,033 | 370,047 | 315,085 | 589,232 | |||||||||||||
| 75,374 | 5,572 | 387,502 | 63,230 | |||||||||||||
| (42,818 | ) | (15,674 | ) | (1,554,926 | ) | (1,567,856 | ) | |||||||||
| 3,046,589 | 359,945 | (852,339 | ) | (915,394 | ) | |||||||||||
| 3,718,473 | 671,884 | 1,322,884 | 2,175,223 | |||||||||||||
| 18,777 | 771 | 931,724 | 1,622,591 | |||||||||||||
| 5,628 | 18,836 | 109,245 | 121,575 | |||||||||||||
| 382 | 155 | 312,163 | 23,374 | |||||||||||||
| (4,841 | ) | (985 | ) | (267,785 | ) | (835,816 | ) | |||||||||
| 1,169 | 18,006 | 153,623 | (690,867 | ) | ||||||||||||
| 19,946 | 18,777 | 1,085,347 | 931,724 | |||||||||||||
Annual Report 217
| Lazard | |||||||||
| International Strategic Equity Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 200,921,129 | $ | 61,471,034 | |||||
| Net realized gain (loss) | 243,245,427 | (40,723,514 | ) | ||||||
| Net change in unrealized appreciation (depreciation) | (100,750,072 | ) | 413,060,145 | ||||||
| Net increase (decrease) in net assets resulting from operations | 343,416,484 | 433,807,665 | |||||||
| Distributions to shareholders (Note 2(e)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (371,347,485 | ) | (53,074,159 | ) | |||||
| Open Shares | (30,723,600 | ) | (4,116,579 | ) | |||||
| R6 Shares | (7,937,887 | ) | (1,190,335 | ) | |||||
| Return of capital | |||||||||
| Institutional Shares | (101,625,202 | ) | — | ||||||
| Open Shares | (8,228,846 | ) | — | ||||||
| R6 Shares | (2,172,377 | ) | — | ||||||
| Net decrease in net assets resulting from distributions | (522,035,397 | ) | (58,381,073 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 1,150,537,246 | 867,984,229 | |||||||
| Open Shares | 67,454,415 | 109,837,899 | |||||||
| R6 Shares | 7,162,815 | 6,884,808 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 448,404,862 | 49,928,530 | |||||||
| Open Shares | 36,546,493 | 3,877,654 | |||||||
| R6 Shares | 9,942,857 | 1,163,760 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (990,293,303 | ) | (1,489,992,288 | ) | |||||
| Open Shares | (168,625,826 | ) | (288,996,541 | ) | |||||
| R6 Shares | (8,192,483 | ) | (18,963,448 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | 552,937,076 | (758,275,397 | ) | ||||||
| Total increase (decrease) in net assets | 374,318,163 | (382,848,805 | ) | ||||||
| Net assets at beginning of period | 5,924,574,787 | 6,307,423,592 | |||||||
| Net assets at end of period | $ | 6,298,892,950 | $ | 5,924,574,787 | |||||
The accompanying notes are an integral part of these financial statements.
218 Annual Report
| Lazard | Lazard | |||||||||||||||
| Managed Equity Volatility Portfolio | US Equity Concentrated Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| $ | 455,246 | $ | 556,115 | $ | 7,375,860 | $ | 11,826,884 | |||||||||
| 2,837,261 | (1,486,977 | ) | 298,140,654 | 44,140,640 | ||||||||||||
| 1,446,592 | (960,609 | ) | 140,441,179 | 276,752,935 | ||||||||||||
| 4,739,099 | (1,891,471 | ) | 445,957,693 | 332,720,459 | ||||||||||||
| (1,898,603 | ) | (562,392 | ) | (262,821,100 | ) | (31,466,690 | ) | |||||||||
| (5,036 | ) | (1,918 | ) | (4,727,403 | ) | (474,468 | ) | |||||||||
| — | — | (363,056 | ) | (35,269 | ) | |||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| (1,903,639 | ) | (564,310 | ) | (267,911,559 | ) | (31,976,427 | ) | |||||||||
| 7,970,630 | 3,728,503 | 321,688,811 | 832,814,325 | |||||||||||||
| 955 | 7,770 | 5,568,105 | 7,487,780 | |||||||||||||
| — | — | 6,623 | 39,699 | |||||||||||||
| 1,682,281 | 527,907 | 244,348,427 | 29,424,137 | |||||||||||||
| 5,036 | 1,918 | 4,618,990 | 465,481 | |||||||||||||
| — | — | 362,958 | 35,269 | |||||||||||||
| (7,176,588 | ) | (10,447,520 | ) | (733,616,650 | ) | (496,523,782 | ) | |||||||||
| (3,910 | ) | (134,993 | ) | (12,293,864 | ) | (21,891,108 | ) | |||||||||
| — | — | (29,538 | ) | (133,537 | ) | |||||||||||
| 2,478,404 | (6,316,415 | ) | (169,346,138 | ) | 351,718,264 | |||||||||||
| 5,313,864 | (8,772,196 | ) | 8,699,996 | 652,462,296 | ||||||||||||
| 25,813,712 | 34,585,908 | 1,972,902,259 | 1,320,439,963 | |||||||||||||
| $ | 31,127,576 | $ | 25,813,712 | $ | 1,981,602,255 | $ | 1,972,902,259 | |||||||||
Annual Report 219
| Lazard | |||||||||
| International Strategic Equity Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 313,114,237 | 357,911,733 | |||||||
| Shares sold | 64,623,204 | 63,824,929 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 27,801,571 | 3,094,195 | |||||||
| Shares redeemed | (56,512,040 | ) | (111,716,620 | ) | |||||
| Net increase (decrease) | 35,912,735 | (44,797,496 | ) | ||||||
| Shares outstanding at end of period | 349,026,972 | 313,114,237 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 31,509,845 | 43,939,513 | |||||||
| Shares sold | 3,784,216 | 8,170,528 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 2,243,494 | 239,698 | |||||||
| Shares redeemed | (9,660,450 | ) | (20,839,894 | ) | |||||
| Net increase (decrease) | (3,632,740 | ) | (12,429,668 | ) | |||||
| Shares outstanding at end of period | 27,877,105 | 31,509,845 | |||||||
| R6 Shares | |||||||||
| Shares outstanding at beginning of period | 7,044,138 | 7,802,421 | |||||||
| Shares sold | 405,424 | 482,711 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 616,082 | 72,070 | |||||||
| Shares redeemed | (459,496 | ) | (1,313,064 | ) | |||||
| Net increase (decrease) | 562,010 | (758,283 | ) | ||||||
| Shares outstanding at end of period | 7,606,148 | 7,044,138 | |||||||
The accompanying notes are an integral part of these financial statements.
220 Annual Report
| Lazard | Lazard | |||||||||||||||
| Managed Equity Volatility Portfolio | US Equity Concentrated Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| 2,184,318 | 2,714,105 | 107,284,843 | 75,485,283 | |||||||||||||
| 614,142 | 339,588 | 15,965,414 | 61,909,549 | |||||||||||||
| 129,002 | 45,732 | 12,544,478 | 1,653,980 | |||||||||||||
| (570,249 | ) | (915,107 | ) | (37,148,580 | ) | (31,763,969 | ) | |||||||||
| 172,895 | (529,787 | ) | (8,638,688 | ) | 31,799,560 | |||||||||||
| 2,357,213 | 2,184,318 | 98,646,155 | 107,284,843 | |||||||||||||
| 6,488 | 18,298 | 1,888,783 | 2,759,073 | |||||||||||||
| 73 | 693 | 272,288 | 471,205 | |||||||||||||
| 387 | 167 | 234,873 | 25,961 | |||||||||||||
| (319 | ) | (12,670 | ) | (602,499 | ) | (1,367,456 | ) | |||||||||
| 141 | (11,810 | ) | (95,338 | ) | (870,290 | ) | ||||||||||
| 6,629 | 6,488 | 1,793,445 | 1,888,783 | |||||||||||||
| — | — | 120,303 | 123,837 | |||||||||||||
| — | — | 325 | 2,646 | |||||||||||||
| — | — | 18,578 | 1,978 | |||||||||||||
| — | — | (1,522 | ) | (8,158 | ) | |||||||||||
| — | — | 17,381 | (3,534 | ) | ||||||||||||
| — | — | 137,684 | 120,303 | |||||||||||||
Annual Report 221
| Lazard | |||||||||
| US Equity Focus Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Increase in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 371,416 | $ | 378,730 | |||||
| Net realized gain (loss) | 2,732,490 | 3,423,426 | |||||||
| Net change in unrealized appreciation (depreciation) | 13,333,759 | 4,304,928 | |||||||
| Net increase (decrease) in net assets resulting from operations | 16,437,665 | 8,107,084 | |||||||
| Distributions to shareholders (Note 2(e)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (2,341,356 | ) | (1,576,592 | ) | |||||
| Open Shares | (83,281 | ) | (62,169 | ) | |||||
| R6 Shares | (2,019,972 | ) | (978,148 | ) | |||||
| Net decrease in net assets resulting from distributions | (4,444,609 | ) | (2,616,909 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 5,400,355 | 1,198,572 | |||||||
| Open Shares | 16,560 | 49,836 | |||||||
| R6 Shares | 16,666,565 | 11,195,761 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 2,316,382 | 1,575,875 | |||||||
| Open Shares | 82,695 | 61,322 | |||||||
| R6 Shares | 2,018,035 | 978,148 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (2,454,548 | ) | (7,184,723 | ) | |||||
| Open Shares | (75,448 | ) | (68,642 | ) | |||||
| R6 Shares | (8,682,494 | ) | (4,575,266 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | 15,288,102 | 3,230,883 | |||||||
| Total increase (decrease) in net assets | 27,281,158 | 8,721,058 | |||||||
| Net assets at beginning of period | 53,107,751 | 44,386,693 | |||||||
| Net assets at end of period | $ | 80,388,909 | $ | 53,107,751 | |||||
| (a) | The Portfolio commenced operations on June 30, 2020 |
The accompanying notes are an integral part of these financial statements.
222 Annual Report
| Lazard | Lazard | |||||||||||||||
| US Small-Mid Cap Equity Portfolio | US Sustainable Equity Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020(a) | |||||||||||||
| $ | 19,235 | $ | 302,781 | $ | 57,578 | $ | 30,063 | |||||||||
| 22,249,252 | (4,631,410 | ) | 259,323 | 61,946 | ||||||||||||
| (2,365,273 | ) | 9,989,695 | 3,120,821 | 1,719,335 | ||||||||||||
| 19,903,214 | 5,661,066 | 3,437,722 | 1,811,344 | |||||||||||||
| (13,165,718 | ) | (689,524 | ) | (299,354 | ) | (62,973 | ) | |||||||||
| (1,602,028 | ) | (79,756 | ) | (10,422 | ) | (393 | ) | |||||||||
| (99,135 | ) | (4,077 | ) | — | — | |||||||||||
| (14,866,881 | ) | (773,357 | ) | (309,776 | ) | (63,366 | ) | |||||||||
| 24,647,589 | 41,076,855 | 12,000 | 9,704,139 | |||||||||||||
| 1,109,317 | 1,508,700 | 467,727 | 105,500 | |||||||||||||
| 151,641 | 710,287 | — | — | |||||||||||||
| 12,992,400 | 684,306 | 299,354 | 62,973 | |||||||||||||
| 1,540,062 | 73,301 | 10,422 | 393 | |||||||||||||
| 99,135 | 4,077 | — | — | |||||||||||||
| (39,607,630 | ) | (62,404,831 | ) | (147,812 | ) | (3,004 | ) | |||||||||
| (3,317,566 | ) | (5,586,777 | ) | (45,353 | ) | — | ||||||||||
| (251,244 | ) | (75,526 | ) | — | — | |||||||||||
| (2,636,296 | ) | (24,009,608 | ) | 596,338 | 9,870,001 | |||||||||||
| 2,400,037 | (19,121,899 | ) | 3,724,284 | 11,617,979 | ||||||||||||
| 103,632,413 | 122,754,312 | 11,617,979 | — | |||||||||||||
| $ | 106,032,450 | $ | 103,632,413 | $ | 15,342,263 | $ | 11,617,979 | |||||||||
Annual Report 223
| Lazard | |||||||||
| US Equity Focus Portfolio | |||||||||
| Year Ended | Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2021 | 2020 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 2,323,580 | 2,714,562 | |||||||
| Shares sold | 356,108 | 100,582 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 146,606 | 122,119 | |||||||
| Shares redeemed | (166,000 | ) | (613,683 | ) | |||||
| Net increase (decrease) | 336,714 | (390,982 | ) | ||||||
| Shares outstanding at end of period | 2,660,294 | 2,323,580 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 95,597 | 92,372 | |||||||
| Shares sold | 1,083 | 4,311 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 5,208 | 4,733 | |||||||
| Shares redeemed | (4,832 | ) | (5,819 | ) | |||||
| Net increase (decrease) | 1,459 | 3,225 | |||||||
| Shares outstanding at end of period | 97,056 | 95,597 | |||||||
| R6 Shares† | |||||||||
| Shares outstanding at beginning of period | 1,550,718 | 881,361 | |||||||
| Shares sold | 1,137,911 | 1,003,398 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 127,643 | 75,523 | |||||||
| Shares redeemed | (573,275 | ) | (409,564 | ) | |||||
| Net increase (decrease) | 692,279 | 669,357 | |||||||
| Shares outstanding at end of period | 2,242,997 | 1,550,718 | |||||||
| † | The inception date for the US Small-Mid Cap Equity R6 Shares was January 8, 2020. |
| (a) | The Portfolio commenced operations on June 30, 2020 |
The accompanying notes are an integral part of these financial statements.
224 Annual Report
| Lazard | Lazard | |||||||||||||||
| US Small-Mid Cap Equity Portfolio | US Sustainable Equity Portfolio | |||||||||||||||
| Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2021 | 2020 | 2021 | 2020(a) | |||||||||||||
| 6,377,893 | 7,925,745 | 942,026 | — | |||||||||||||
| 1,504,750 | 3,732,653 | 780 | 937,041 | |||||||||||||
| 882,683 | 56,694 | 19,972 | 5,235 | |||||||||||||
| (2,452,537 | ) | (5,337,199 | ) | (9,885 | ) | (250 | ) | |||||||||
| (65,104 | ) | (1,547,852 | ) | 10,867 | 942,026 | |||||||||||
| 6,312,789 | 6,377,893 | 952,893 | 942,026 | |||||||||||||
| 827,420 | 1,164,098 | 10,495 | — | |||||||||||||
| 75,218 | 138,148 | 34,512 | 10,462 | |||||||||||||
| 115,620 | 6,598 | 695 | 33 | |||||||||||||
| (221,973 | ) | (481,424 | ) | (3,249 | ) | — | ||||||||||
| (31,135 | ) | (336,678 | ) | 31,958 | 10,495 | |||||||||||
| 796,285 | 827,420 | 42,453 | 10,495 | |||||||||||||
| 47,409 | — | — | — | |||||||||||||
| 9,060 | 53,236 | — | — | |||||||||||||
| 6,731 | 338 | — | — | |||||||||||||
| (15,271 | ) | (6,165 | ) | — | — | |||||||||||
| 520 | 47,409 | — | — | |||||||||||||
| 47,929 | 47,409 | — | — | |||||||||||||
Annual Report 225
| Lazard | ||||||
| US Systematic | ||||||
| Small Cap Equity | ||||||
| Year Ended December 31, 2021 (a) | Portfolio | |||||
| Increase in Net Assets | ||||||
| Operations | ||||||
| Net investment income (loss) | $ | 8,620 | ||||
| Net realized gain (loss) | 11,440 | |||||
| Net change in unrealized appreciation (depreciation) | 61,890 | |||||
| Net increase (decrease) in net assets resulting from operations | 81,950 | |||||
| Distributions to shareholders (Note 2(e)) | ||||||
| Net investment income and net realized gains | ||||||
| Institutional Shares | (8,515 | ) | ||||
| Net decrease in net assets resulting from distributions | (8,515 | ) | ||||
| Capital stock transactions | ||||||
| Net proceeds from sales | ||||||
| Institutional Shares | 3,903,086 | |||||
| Open Shares | 117,325 | |||||
| Net proceeds from reinvestment of distributions | ||||||
| Institutional Shares | 8,515 | |||||
| Net increase (decrease) in net assets from capital stock transactions | 4,028,926 | |||||
| Total increase (decrease) in net assets | 4,102,361 | |||||
| Net assets at beginning of period | — | |||||
| Net assets at end of period | $ | 4,102,361 | ||||
| Shares issued and redeemed | ||||||
| Institutional Shares | ||||||
| Shares outstanding at beginning of period | — | |||||
| Shares sold | 387,263 | |||||
| Shares issued to shareholders from reinvestment of distributions | 848 | |||||
| Net increase (decrease) | 388,111 | |||||
| Shares outstanding at end of period | 388,111 | |||||
| Open Shares | ||||||
| Shares outstanding at beginning of period | — | |||||
| Shares sold | 11,650 | |||||
| Net increase (decrease) | 11,650 | |||||
| Shares outstanding at end of period | 11,650 | |||||
| (a) | The Portfolio commenced operations on October 29, 2021 |
The accompanying notes are an integral part of these financial statements.
226 Annual Report
The Lazard Funds, Inc. Financial Highlights
LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 17.31 | $ | 14.55 | $ | 11.42 | $ | 14.48 | $ | 10.28 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.05 | 0.04 | 0.08 | 0.11 | 0.03 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (1.81 | ) | 2.76 | 3.13 | (3.08 | ) | 4.20 | ||||||||||||||
| Total from investment operations | (1.76 | ) | 2.80 | 3.21 | (2.97 | ) | 4.23 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.15 | ) | (0.04 | ) | (0.08 | ) | (0.09 | ) | (0.03 | ) | |||||||||||
| Total distributions | (0.15 | ) | (0.04 | ) | (0.08 | ) | (0.09 | ) | (0.03 | ) | |||||||||||
| Net asset value, end of period | $ | 15.40 | $ | 17.31 | $ | 14.55 | $ | 11.42 | $ | 14.48 | |||||||||||
| Total Return (b) | –10.14 | % | 19.33 | % | 28.17 | % | –20.58 | % | 41.15 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 148,419 | $ | 190,689 | $ | 226,067 | $ | 215,120 | $ | 268,730 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.15 | % | 1.17 | % | 1.16 | % | 1.14 | % | 1.18 | % | |||||||||||
| Gross expenses | 1.15 | % | 1.21 | % | 1.16 | % | 1.14 | % | 1.18 | % | |||||||||||
| Net investment income (loss) | 0.28 | % | 0.33 | % | 0.63 | % | 0.83 | % | 0.24 | % | |||||||||||
| Portfolio turnover rate | 39 | % | 57 | % | 55 | % | 63 | % | 46 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 227
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $17.21 | $14.51 | $11.36 | $14.45 | $10.28 | ||||||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | — | (c) | 0.01 | 0.05 | 0.06 | (0.02 | ) | ||||||||||||||
| Net realized and unrealized gain (loss) | (1.78 | ) | 2.73 | 3.11 | (3.06 | ) | 4.19 | ||||||||||||||
| Total from investment operations | (1.78 | ) | 2.74 | 3.16 | (3.00 | ) | 4.17 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.12 | ) | (0.04 | ) | (0.01 | ) | (0.09 | ) | — | ||||||||||||
| Total distributions | (0.12 | ) | (0.04 | ) | (0.01 | ) | (0.09 | ) | — | ||||||||||||
| Net asset value, end of period | $15.31 | $17.21 | $14.51 | $11.36 | $14.45 | ||||||||||||||||
| Total Return (b) | –10.37 | % | 18.97 | % | 27.79 | % | –20.83 | %# | 40.56 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $9,193 | $9,914 | $9,341 | $7,263 | $12,569 | ||||||||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.40 | % | 1.44 | % | 1.46 | % | 1.51 | % | 1.58 | % | |||||||||||
| Gross expenses | 1.45 | % | 1.53 | % | 1.55 | % | 1.51 | % | 1.58 | % | |||||||||||
| Net investment income (loss) | — | %(d) | 0.04 | % | 0.36 | % | 0.42 | % | –0.17 | % | |||||||||||
| Portfolio turnover rate | 39 | % | 57 | % | 55 | % | 63 | % | 46 | % | |||||||||||
| # | The Portfolio received settlement proceeds from a foreign exchange trading class action lawsuit. The proceeds from the settlement represented a realized gain and were recorded in the period received. There was a 0.07% impact on the total return of the Portfolio’s Open Shares. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
| (c) | Amount is less than $0.01 per share. |
| (d) | Amount is less than 0.005%. |
The accompanying notes are an integral part of these financial statements.
228 Annual Report
LAZARD EMERGING MARKETS CORE EQUITY PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.12 | $ | 11.79 | $ | 9.89 | $ | 12.30 | $ | 8.83 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.08 | 0.08 | 0.20 | 0.16 | 0.11 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (1.55 | ) | 1.33 | 1.93 | (2.39 | ) | 3.45 | ||||||||||||||
| Total from investment operations | (1.47 | ) | 1.41 | 2.13 | (2.23 | ) | 3.56 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.09 | ) | (0.08 | ) | (0.23 | ) | (0.18 | ) | (0.09 | ) | |||||||||||
| Total distributions | (0.09 | ) | (0.08 | ) | (0.23 | ) | (0.18 | ) | (0.09 | ) | |||||||||||
| Net asset value, end of period | $ | 11.56 | $ | 13.12 | $ | 11.79 | $ | 9.89 | $ | 12.30 | |||||||||||
| Total Return (b) | –11.21 | % | 11.98 | % | 21.59 | % | –18.12 | % | 40.35 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 156,284 | $ | 209,503 | $ | 197,213 | $ | 207,955 | $ | 230,343 | |||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 1.16 | % | 1.20 | % | 1.18 | % | 1.18 | % | 1.20 | % | |||||||||||
| Gross expenses | 1.16 | % | 1.20 | % | 1.18 | % | 1.18 | % | 1.20 | % | |||||||||||
| Net investment income (loss) | 0.64 | % | 0.70 | % | 1.83 | % | 1.44 | % | 0.98 | % | |||||||||||
| Portfolio turnover rate | 31 | % | 23 | % | 19 | % | 30 | % | 15 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 229
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $13.09 | $11.76 | $9.87 | $12.27 | $8.81 | ||||||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.04 | 0.04 | 0.16 | 0.11 | 0.06 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (1.55 | ) | 1.33 | 1.92 | (2.37 | ) | 3.45 | ||||||||||||||
| Total from investment operations | (1.51 | ) | 1.37 | 2.08 | (2.26 | ) | 3.51 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.05 | ) | (0.04 | ) | (0.19 | ) | (0.14 | ) | (0.05 | ) | |||||||||||
| Total distributions | (0.05 | ) | (0.04 | ) | (0.19 | ) | (0.14 | ) | (0.05 | ) | |||||||||||
| Net asset value, end of period | $11.53 | $13.09 | $11.76 | $9.87 | $12.27 | ||||||||||||||||
| Total Return (b) | –11.53 | % | 11.66 | % | 21.08 | % | –18.43 | % | 39.80 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $2,113 | $2,544 | $2,425 | $1,853 | $1,828 | ||||||||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 1.50 | % | 1.50 | % | 1.55 | % | 1.58 | % | 1.60 | % | |||||||||||
| Gross expenses | 1.55 | % | 1.62 | % | 1.90 | % | 2.00 | % | 2.45 | % | |||||||||||
| Net investment income (loss) | 0.34 | % | 0.35 | % | 1.48 | % | 1.00 | % | 0.56 | % | |||||||||||
| Portfolio turnover rate | 31 | % | 23 | % | 19 | % | 30 | % | 15 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
230 Annual Report
| Selected data for a share of capital stock outstanding | Year Ended | For the Period 4/6/18* to | |||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |||||||||||||
| R6 Shares | |||||||||||||||||
| Net asset value, beginning of period | $13.13 | $11.80 | $ 9.89 | $12.21 | |||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||
| Net investment income (loss) (a) | 0.09 | 0.07 | 0.20 | 0.14 | |||||||||||||
| Net realized and unrealized gain (loss) | (1.56 | ) | 1.34 | 1.94 | (2.28 | ) | |||||||||||
| Total from investment operations | (1.47 | ) | 1.41 | 2.14 | (2.14 | ) | |||||||||||
| Less distributions from: | |||||||||||||||||
| Net investment income | (0.09 | ) | (0.08 | ) | (0.23 | ) | (0.18 | ) | |||||||||
| Total distributions | (0.09 | ) | (0.08 | ) | (0.23 | ) | (0.18 | ) | |||||||||
| Net asset value, end of period | $11.57 | $13.13 | $11.80 | $ 9.89 | |||||||||||||
| Total Return (b) | –11.19 | % | 11.97 | % | 21.69 | % | –17.52 | % | |||||||||
| Ratios and Supplemental Data: | |||||||||||||||||
| Net assets, end of period (in thousands) | $ 311 | $ 544 | $ 597 | $ 494 | |||||||||||||
| Ratios to average net assets (c): | |||||||||||||||||
| Net expenses | 1.16 | % | 1.20 | % | 1.18 | % | 1.16 | % | |||||||||
| Gross expenses | 1.91 | % | 1.87 | % | 3.23 | % | 7.68 | % | |||||||||
| Net investment income (loss) | 0.66 | % | 0.63 | % | 1.80 | % | 1.71 | % | |||||||||
| Portfolio turnover rate | 31 | % | 23 | % | 19 | % | 30 | % | |||||||||
| * | The inception date for the R6 Shares was April 6, 2018. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (c) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
Annual Report 231
LAZARD EMERGING MARKETS EQUITY ADVANTAGE PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.79 | $ | 11.84 | $10.03 | $12.27 | $ | 8.71 | |||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.27 | 0.10 | 0.24 | 0.19 | 0.12 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (0.15 | ) | 1.97 | 1.80 | (2.19 | ) | 3.58 | ||||||||||||||
| Total from investment operations | 0.12 | 2.07 | 2.04 | (2.00 | ) | 3.70 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.22 | ) | (0.10 | ) | (0.23 | ) | (0.22 | ) | (0.13 | ) | |||||||||||
| Net realized gains | (0.81 | ) | (0.02 | ) | — | — | (b) | — | |||||||||||||
| Return of capital | — | — | — | (0.02 | ) | (0.01 | ) | ||||||||||||||
| Total distributions | (1.03 | ) | (0.12 | ) | (0.23 | ) | (0.24 | ) | (0.14 | ) | |||||||||||
| Net asset value, end of period | $ | 12.88 | $ | 13.79 | $11.84 | $10.03 | $ | 12.27 | |||||||||||||
| Total Return (c) | 0.96 | % | 17.50 | % | 20.34 | % | –16.23 | % | 42.52 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 68,538 | $ | 27,898 | $9,190 | $3,107 | $ | 4,191 | |||||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.93 | % | 1.10 | % | 1.10 | % | 1.10 | % | 1.10 | % | |||||||||||
| Gross expenses | 1.21 | % | 1.97 | % | 3.19 | % | 5.60 | % | 6.29 | % | |||||||||||
| Net investment income (loss) | 1.90 | % | 0.87 | % | 2.15 | % | 1.59 | % | 1.15 | % | |||||||||||
| Portfolio turnover rate | 88 | % | 91 | % | 59 | % | 61 | % | 52 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
232 Annual Report
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $13.79 | $ | 11.85 | $ | 10.04 | $12.27 | $ | 8.71 | |||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.12 | 0.09 | 0.21 | 0.16 | 0.08 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (0.04 | ) | 1.93 | 1.79 | (2.18 | ) | 3.58 | ||||||||||||||
| Total from investment operations | 0.08 | 2.02 | 2.00 | (2.02 | ) | 3.66 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.18 | ) | (0.06 | ) | (0.19 | ) | (0.19 | ) | (0.09 | ) | |||||||||||
| Net realized gains | (0.81 | ) | (0.02 | ) | — | — | (b) | — | |||||||||||||
| Return of capital | — | — | — | (0.02 | ) | (0.01 | ) | ||||||||||||||
| Total distributions | (0.99 | ) | (0.08 | ) | (0.19 | ) | (0.21 | ) | (0.10 | ) | |||||||||||
| Net asset value, end of period | $12.88 | $ | 13.79 | $ | 11.85 | $10.04 | $ | 12.27 | |||||||||||||
| Total Return (c) | 0.63 | % | 17.10 | % | 19.97 | % | –16.40 | % | 42.09 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ 979 | $ | 876 | $ | 1,162 | $ 476 | $ | 356 | |||||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.25 | % | 1.35 | % | 1.38 | % | 1.40 | % | 1.40 | % | |||||||||||
| Gross expenses | 1.75 | % | 2.68 | % | 4.32 | % | 8.09 | % | 12.17 | % | |||||||||||
| Net investment income (loss) | 0.80 | % | 0.76 | % | 1.87 | % | 1.35 | % | 0.72 | % | |||||||||||
| Portfolio turnover rate | 88 | % | 91 | % | 59 | % | 61 | % | 52 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Amount is less than $0.01 per share. |
| (c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 233
LAZARD EMERGING MARKETS EQUITY PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 18.03 | $ | 18.48 | $ | 16.06 | $ | 20.02 | $ | 15.96 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.56 | 0.37 | 0.42 | 0.39 | 0.33 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.42 | (0.44 | ) | 2.45 | (4.01 | ) | 4.13 | ||||||||||||||
| Total from investment operations | 0.98 | (0.07 | ) | 2.87 | (3.62 | ) | 4.46 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.89 | ) | (0.38 | ) | (0.45 | ) | (0.34 | ) | (0.40 | ) | |||||||||||
| Total distributions | (0.89 | ) | (0.38 | ) | (0.45 | ) | (0.34 | ) | (0.40 | ) | |||||||||||
| Net asset value, end of period | $ | 18.12 | $ | 18.03 | $ | 18.48 | $ | 16.06 | $ | 20.02 | |||||||||||
| Total Return (b) | 5.44 | % | –0.10 | % | 18.04 | % | –18.09 | % | 28.02 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 3,271,175 | $ | 3,923,878 | $ | 6,645,429 | $ | 7,573,861 | $ | 11,285,358 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.07 | % | 1.09 | % | 1.08 | % | 1.07 | % | 1.08 | % | |||||||||||
| Gross expenses | 1.07 | % | 1.09 | % | 1.08 | % | 1.07 | % | 1.08 | % | |||||||||||
| Net investment income (loss) | 2.93 | % | 2.36 | % | 2.42 | % | 2.12 | % | 1.82 | % | |||||||||||
| Portfolio turnover rate | 34 | % | 39 | % | 20 | % | 16 | % | 14 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
234 Annual Report
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 18.58 | $ | 19.03 | $ | 16.53 | $ | 20.60 | $ | 16.41 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.53 | 0.34 | 0.39 | 0.35 | 0.29 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.43 | (0.45 | ) | 2.52 | (4.12 | ) | 4.25 | ||||||||||||||
| Total from investment operations | 0.96 | (0.11 | ) | 2.91 | (3.77 | ) | 4.54 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.84 | ) | (0.34 | ) | (0.41 | ) | (0.30 | ) | (0.35 | ) | |||||||||||
| Total distributions | (0.84 | ) | (0.34 | ) | (0.41 | ) | (0.30 | ) | (0.35 | ) | |||||||||||
| Net asset value, end of period | $ | 18.70 | $ | 18.58 | $ | 19.03 | $ | 16.53 | $ | 20.60 | |||||||||||
| Total Return (b) | 5.19 | % | –0.34 | % | 17.73 | % | –18.32 | % | 27.73 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 371,863 | $ | 421,990 | $ | 969,347 | $ | 1,004,569 | $ | 1,515,715 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.32 | % | 1.34 | % | 1.34 | % | 1.32 | % | 1.34 | % | |||||||||||
| Gross expenses | 1.32 | % | 1.34 | % | 1.34 | % | 1.32 | % | 1.34 | % | |||||||||||
| Net investment income (loss) | 2.68 | % | 2.08 | % | 2.19 | % | 1.85 | % | 1.55 | % | |||||||||||
| Portfolio turnover rate | 34 | % | 39 | % | 20 | % | 16 | % | 14 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 235
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout the period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 18.04 | $ | 18.47 | $ | 16.06 | $ | 20.02 | $ | 15.96 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.54 | 0.40 | 0.40 | 0.40 | 0.35 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.44 | (0.45 | ) | 2.46 | (4.02 | ) | 4.11 | ||||||||||||||
| Total from investment operations | 0.98 | (0.05 | ) | 2.86 | (3.62 | ) | 4.46 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.89 | ) | (0.38 | ) | (0.45 | ) | (0.34 | ) | (0.40 | ) | |||||||||||
| Total distributions | (0.89 | ) | (0.38 | ) | (0.45 | ) | (0.34 | ) | (0.40 | ) | |||||||||||
| Net asset value, end of period | $ | 18.13 | $ | 18.04 | $ | 18.47 | $ | 16.06 | $ | 20.02 | |||||||||||
| Total Return (b) | 5.44 | % | 0.01 | % | 17.98 | % | –18.09 | % | 28.02 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 9,880 | $ | 23,631 | $ | 184,337 | $ | 232,507 | $ | 372,568 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.06 | % | 1.08 | % | 1.08 | % | 1.07 | % | 1.08 | % | |||||||||||
| Gross expenses | 1.08 | % | 1.09 | % | 1.08 | % | 1.07 | % | 1.08 | % | |||||||||||
| Net investment income (loss) | 2.83 | % | 2.52 | % | 2.30 | % | 2.15 | % | 1.91 | % | |||||||||||
| Portfolio turnover rate | 34 | % | 39 | % | 20 | % | 16 | % | 14 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
236 Annual Report
LAZARD EMERGING MARKETS STRATEGIC EQUITY PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.80 | $ | 12.18 | $ | 10.02 | $ | 12.93 | $ | 9.60 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.19 | 0.13 | 0.13 | 0.17 | 0.10 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (0.96 | ) | 1.66 | 2.29 | (2.89 | ) | 3.35 | ||||||||||||||
| Total from investment operations | (0.77 | ) | 1.79 | 2.42 | (2.72 | ) | 3.45 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.16 | ) | (0.17 | ) | (0.26 | ) | (0.19 | ) | (0.12 | ) | |||||||||||
| Total distributions | (0.16 | ) | (0.17 | ) | (0.26 | ) | (0.19 | ) | (0.12 | ) | |||||||||||
| Net asset value, end of period | $ | 12.87 | $ | 13.80 | $ | 12.18 | $ | 10.02 | $ | 12.93 | |||||||||||
| Total Return (b) | –5.54 | % | 14.74 | % | 24.21 | % | –21.05 | % | 35.98 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 57,269 | $ | 74,406 | $ | 96,399 | $ | 291,404 | $ | 385,492 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.18 | % | 1.22 | % | 1.26 | % | 1.15 | % | 1.21 | % | |||||||||||
| Gross expenses | 1.33 | % | 1.46 | % | 1.26 | % | 1.15 | % | 1.21 | % | |||||||||||
| Net investment income (loss) | 1.33 | % | 1.18 | % | 1.16 | % | 1.39 | % | 0.90 | % | |||||||||||
| Portfolio turnover rate | 95 | % | 53 | % | 56 | % | 61 | % | 57 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 237
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.85 | $ | 12.23 | $ | 10.03 | $ | 12.95 | $ | 9.62 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.14 | 0.10 | 0.14 | 0.12 | 0.06 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (0.94 | ) | 1.65 | 2.29 | (2.89 | ) | 3.34 | ||||||||||||||
| Total from investment operations | (0.80 | ) | 1.75 | 2.43 | (2.77 | ) | 3.40 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.13 | ) | (0.13 | ) | (0.23 | ) | (0.15 | ) | (0.07 | ) | |||||||||||
| Total distributions | (0.13 | ) | (0.13 | ) | (0.23 | ) | (0.15 | ) | (0.07 | ) | |||||||||||
| Redemption fees | — | — | — | — | — | (c) | |||||||||||||||
| Net asset value, end of period | $ | 12.92 | $ | 13.85 | $ | 12.23 | $ | 10.03 | $ | 12.95 | |||||||||||
| Total Return (b) | –5.75 | % | 14.39 | % | 24.21 | % | –21.39 | % | 35.38 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 2,949 | $ | 4,019 | $ | 5,977 | $ | 6,200 | $ | 9,728 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.43 | % | 1.48 | % | 1.52 | % | 1.53 | % | 1.60 | % | |||||||||||
| Gross expenses | 1.71 | % | 1.83 | % | 1.77 | % | 1.53 | % | 1.61 | % | |||||||||||
| Net investment income (loss) | 1.01 | % | 0.88 | % | 1.27 | % | 1.01 | % | 0.50 | % | |||||||||||
| Portfolio turnover rate | 95 | % | 53 | % | 56 | % | 61 | % | 57 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
| (c) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
238 Annual Report
LAZARD EQUITY FRANCHISE PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | For the Period 9/29/17* to |
|||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.17 | $ | 10.17 | $ | 8.84 | $ | 10.38 | $ | 10.00 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.15 | 0.10 | 0.19 | 0.20 | 0.03 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.14 | 0.02 | 1.73 | (0.75 | ) | 0.40 | |||||||||||||||
| Total from investment operations | 2.29 | 0.12 | 1.92 | (0.55 | ) | 0.43 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.15 | ) | (0.07 | ) | (0.15 | ) | (0.21 | ) | (0.03 | ) | |||||||||||
| Net realized gains | (1.53 | ) | (0.05 | ) | (0.44 | ) | (0.78 | ) | (0.02 | ) | |||||||||||
| Total distributions | (1.68 | ) | (0.12 | ) | (0.59 | ) | (0.99 | ) | (0.05 | ) | |||||||||||
| Net asset value, end of period | $ | 10.78 | $ | 10.17 | $ | 10.17 | $ | 8.84 | $ | 10.38 | |||||||||||
| Total Return (b) | 22.76 | % | 1.15 | % | 21.70 | % | –5.10 | % | 4.25 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 105,429 | $ | 91,720 | $ | 39,878 | $ | 8,341 | $ | 5,566 | |||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | |||||||||||
| Gross expenses | 0.98 | % | 1.11 | % | 1.36 | % | 3.42 | % | 3.21 | % | |||||||||||
| Net investment income (loss) | 1.29 | % | 1.09 | % | 1.95 | % | 1.94 | % | 1.26 | % | |||||||||||
| Portfolio turnover rate | 73 | % | 79 | % | 95 | % | 97 | % | 10 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 239
| Selected data for a share of capital stock outstanding | Year Ended | For the Period 9/29/17* to |
|||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.17 | $ | 10.17 | $ | 8.84 | $ | 10.38 | $ | 10.00 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.12 | 0.09 | 0.16 | 0.19 | 0.03 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.13 | — | (d) | 1.73 | (0.77 | ) | 0.39 | ||||||||||||||
| Total from investment operations | 2.25 | 0.09 | 1.89 | (0.58 | ) | 0.42 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.12 | ) | (0.04 | ) | (0.12 | ) | (0.18 | ) | (0.02 | ) | |||||||||||
| Net realized gains | (1.53 | ) | (0.05 | ) | (0.44 | ) | (0.78 | ) | (0.02 | ) | |||||||||||
| Total distributions | (1.65 | ) | (0.09 | ) | (0.56 | ) | (0.96 | ) | (0.04 | ) | |||||||||||
| Net asset value, end of period | $ | 10.77 | $ | 10.17 | $ | 10.17 | $ | 8.84 | $ | 10.38 | |||||||||||
| Total Return (b) | 22.36 | % | 0.90 | % | 21.40 | % | –5.34 | % | 4.18 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 93 | $ | 129 | $ | 312 | $ | 190 | $ | 111 | |||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 1.20 | % | 1.20 | % | 1.18 | % | 1.20 | % | 1.20 | % | |||||||||||
| Gross expenses | 4.45 | % | 3.64 | % | 5.78 | % | 10.19 | % | 23.62 | % | |||||||||||
| Net investment income (loss) | 1.05 | % | 1.00 | % | 1.64 | % | 1.75 | % | 1.14 | % | |||||||||||
| Portfolio turnover rate | 73 | % | 79 | % | 95 | % | 97 | % | 10 | % | |||||||||||
| * | The Portfolio commenced operations on September 29, 2017. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (c) | Annualized for a period of less than one year except for non-recurring expenses. |
| (d) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
240 Annual Report
LAZARD GLOBAL EQUITY SELECT PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 16.32 | $ | 14.56 | $ | 11.72 | $ | 13.04 | $ | 10.53 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.09 | 0.07 | 0.11 | 0.09 | 0.07 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 3.11 | 2.24 | 2.84 | (1.02 | ) | 2.93 | |||||||||||||||
| Total from investment operations | 3.20 | 2.31 | 2.95 | (0.93 | ) | 3.00 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.09 | ) | (0.05 | ) | (0.10 | ) | (0.06 | ) | (0.10 | ) | |||||||||||
| Net realized gains | (0.66 | ) | (0.50 | ) | — | (0.32 | ) | (0.39 | ) | ||||||||||||
| Return of capital | — | — | (0.01 | ) | (0.01 | ) | — | ||||||||||||||
| Total distributions | (0.75 | ) | (0.55 | ) | (0.11 | ) | (0.39 | ) | (0.49 | ) | |||||||||||
| Net asset value, end of period | $ | 18.77 | $ | 16.32 | $ | 14.56 | $ | 11.72 | $ | 13.04 | |||||||||||
| Total Return (b) | 19.75 | % | 15.97 | % | 25.20 | % | –7.12 | % | 28.52 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 109,943 | $ | 92,418 | $ | 82,057 | $ | 65,382 | $ | 58,201 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.84 | % | 0.90 | % | 1.01 | % | 1.05 | % | 1.05 | % | |||||||||||
| Gross expenses | 0.84 | % | 0.95 | % | 1.08 | % | 1.08 | % | 1.30 | % | |||||||||||
| Net investment income (loss) | 0.50 | % | 0.46 | % | 0.85 | % | 0.70 | % | 0.60 | % | |||||||||||
| Portfolio turnover rate | 22 | % | 90 | % | 25 | % | 34 | % | 34 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 241
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 16.33 | $ | 14.57 | $ | 11.73 | $ | 13.04 | $ | 10.54 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.03 | 0.05 | 0.08 | 0.05 | 0.04 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 3.11 | 2.22 | 2.83 | (1.01 | ) | 2.91 | |||||||||||||||
| Total from investment operations | 3.14 | 2.27 | 2.91 | (0.96 | ) | 2.95 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.03 | ) | (0.01 | ) | (0.07 | ) | (0.02 | ) | (0.06 | ) | |||||||||||
| Net realized gains | (0.66 | ) | (0.50 | ) | — | (0.32 | ) | (0.39 | ) | ||||||||||||
| Return of capital | — | — | — | (c) | (0.01 | ) | — | ||||||||||||||
| Total distributions | (0.69 | ) | (0.51 | ) | (0.07 | ) | (0.35 | ) | (0.45 | ) | |||||||||||
| Net asset value, end of period | $ | 18.78 | $ | 16.33 | $ | 14.57 | $ | 11.73 | $ | 13.04 | |||||||||||
| Total Return (b) | 19.37 | % | 15.67 | % | 24.82 | % | –7.33 | % | 28.01 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 1,543 | $ | 1,158 | $ | 933 | $ | 763 | $ | 711 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.15 | % | 1.15 | % | 1.30 | % | 1.35 | % | 1.35 | % | |||||||||||
| Gross expenses | 1.40 | % | 1.74 | % | 2.36 | % | 2.80 | % | 3.70 | % | |||||||||||
| Net investment income (loss) | 0.18 | % | 0.35 | % | 0.56 | % | 0.41 | % | 0.32 | % | |||||||||||
| Portfolio turnover rate | 22 | % | 90 | % | 25 | % | 34 | % | 34 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
| (c) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
242 Annual Report
LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.65 | $ | 15.78 | $ | 13.51 | $ | 15.99 | $ | 14.17 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.61 | * | 0.27 | 0.40 | 0.41 | 0.39 | |||||||||||||||
| Net realized and unrealized gain (loss) | 2.27 | (1.02 | ) | 2.57 | (0.96 | ) | 2.54 | ||||||||||||||
| Total from investment operations | 2.88 | (0.75 | ) | 2.97 | (0.55 | ) | 2.93 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.72 | ) | (0.04 | ) | (0.70 | ) | (0.72 | ) | (0.29 | ) | |||||||||||
| Net realized gains | (0.31 | ) | (0.27 | ) | — | (1.21 | ) | (0.82 | ) | ||||||||||||
| Return of capital | — | (0.07 | ) | — | — | — | |||||||||||||||
| Total distributions | (1.03 | ) | (0.38 | ) | (0.70 | ) | (1.93 | ) | (1.11 | ) | |||||||||||
| Net asset value, end of period | $ | 16.50 | $ | 14.65 | $ | 15.78 | $ | 13.51 | $ | 15.99 | |||||||||||
| Total Return (b) | 19.87 | %* | –4.48 | % | 22.26 | % | –3.68 | % | 20.73 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 7,308,516 | $ | 7,289,680 | $ | 7,277,512 | $ | 4,924,359 | $ | 4,778,042 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.96 | % | 0.96 | % | 0.95 | % | 0.95 | % | 0.95 | % | |||||||||||
| Gross expenses | 0.96 | % | 0.96 | % | 0.95 | % | 0.95 | % | 0.95 | % | |||||||||||
| Net investment income (loss) | 3.86 | %* | 1.87 | % | 2.63 | % | 2.65 | % | 2.44 | % | |||||||||||
| Portfolio turnover rate | 28 | % | 42 | % | 33 | % | 49 | % | 33 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 243
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.66 | $ | 15.79 | $ | 13.52 | $ | 16.01 | $ | 14.20 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.55 | * | 0.23 | 0.36 | 0.37 | 0.35 | |||||||||||||||
| Net realized and unrealized gain (loss) | 2.29 | (1.01 | ) | 2.57 | (0.97 | ) | 2.55 | ||||||||||||||
| Total from investment operations | 2.84 | (0.78 | ) | 2.93 | (0.60 | ) | 2.90 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.68 | ) | (0.03 | ) | (0.66 | ) | (0.68 | ) | (0.27 | ) | |||||||||||
| Net realized gains | (0.31 | ) | (0.25 | ) | — | (1.21 | ) | (0.82 | ) | ||||||||||||
| Return of capital | — | (0.07 | ) | — | — | — | |||||||||||||||
| Total distributions | (0.99 | ) | (0.35 | ) | (0.66 | ) | (1.89 | ) | (1.09 | ) | |||||||||||
| Net asset value, end of period | $ | 16.51 | $ | 14.66 | $ | 15.79 | $ | 13.52 | $ | 16.01 | |||||||||||
| Total Return (b) | 19.56 | %* | –4.68 | % | 21.94 | % | –3.98 | % | 20.47 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 300,372 | $ | 307,757 | $ | 448,387 | $ | 426,749 | $ | 633,243 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.21 | % | 1.21 | % | 1.20 | % | 1.20 | % | 1.21 | % | |||||||||||
| Gross expenses | 1.21 | % | 1.21 | % | 1.20 | % | 1.20 | % | 1.21 | % | |||||||||||
| Net investment income (loss) | 3.50 | %* | 1.57 | % | 2.39 | % | 2.36 | % | 2.16 | % | |||||||||||
| Portfolio turnover rate | 28 | % | 42 | % | 33 | % | 49 | % | 33 | % | |||||||||||
| * | Includes $0.04 of refunds received as a result of European Union dividend withholding tax reclaims filings. There was a 0.29% impact on the total return of the Portfolio. There was a 0.26% impact on the net investment income (loss) ratio of the Portfolio. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. |
The accompanying notes are an integral part of these financial statements.
244 Annual Report
LAZARD GLOBAL STRATEGIC EQUITY PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20* | 12/31/19* | 12/31/18* | 12/31/17* | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 12.12 | $ | 10.30 | $ | 8.20 | $ | 11.55 | $ | 47.95 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.26 | 0.02 | 0.10 | 0.05 | 0.40 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 1.69 | 2.17 | 2.30 | (0.90 | ) | 11.20 | |||||||||||||||
| Total from investment operations | 1.95 | 2.19 | 2.40 | (0.85 | ) | 11.60 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.22 | ) | (0.01 | ) | (0.10 | ) | (0.05 | ) | (1.00 | ) | |||||||||||
| Net realized gains | (0.36 | ) | (0.36 | ) | (0.20 | ) | (2.45 | ) | (47.00 | ) | |||||||||||
| Total distributions | (0.58 | ) | (0.37 | ) | (0.30 | ) | (2.50 | ) | (48.00 | ) | |||||||||||
| Net asset value, end of period | $ | 13.49 | $ | 12.12 | $ | 10.30 | $ | 8.20 | $ | 11.55 | |||||||||||
| Total Return (b) | 16.13 | % | 21.48 | % | 29.19 | % | –9.16 | % | 24.20 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 17,502 | $ | 4,076 | $ | 3,185 | $ | 2,505 | $ | 2,750 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.95 | % | 0.97 | % | 1.00 | % | 1.05 | % | 1.10 | % | |||||||||||
| Gross expenses | 1.88 | % | 5.74 | % | 6.07 | % | 6.41 | % | 2.06 | % | |||||||||||
| Net investment income (loss) | 1.97 | % | 0.23 | % | 1.01 | % | 0.60 | % | 0.76 | % | |||||||||||
| Portfolio turnover rate | 40 | % | 59 | % | 49 | % | 46 | % | 65 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 245
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20* | 12/31/19* | 12/31/18* | 12/31/17* | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 12.02 | $ | 10.25 | $ | 8.15 | $ | 11.50 | $ | 47.95 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.19 | — | (c) | 0.05 | 0.05 | 0.15 | |||||||||||||||
| Net realized and unrealized gain (loss) | 1.72 | 2.13 | 2.30 | (0.95 | ) | 11.25 | |||||||||||||||
| Total from investment operations | 1.91 | 2.13 | 2.35 | (0.90 | ) | 11.40 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.19 | ) | — | (c) | (0.05 | ) | — | (c) | (0.85 | ) | |||||||||||
| Net realized gains | (0.36 | ) | (0.36 | ) | (0.20 | ) | (2.45 | ) | (47.00 | ) | |||||||||||
| Total distributions | (0.55 | ) | (0.36 | ) | (0.25 | ) | (2.45 | ) | (47.85 | ) | |||||||||||
| Net asset value, end of period | $ | 13.38 | $ | 12.02 | $ | 10.25 | $ | 8.15 | $ | 11.50 | |||||||||||
| Total Return (b) | 15.90 | % | 20.96 | % | 29.01 | % | –9.39 | % | 23.72 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 210 | $ | 184 | $ | 144 | $ | 131 | $ | 149 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.20 | % | 1.22 | % | 1.29 | % | 1.35 | % | 1.41 | % | |||||||||||
| Gross expenses | 4.09 | % | 8.76 | % | 13.26 | % | 14.05 | % | 12.33 | % | |||||||||||
| Net investment income (loss) | 1.47 | % | –0.01 | % | 0.72 | % | 0.29 | % | 0.34 | % | |||||||||||
| Portfolio turnover rate | 40 | % | 59 | % | 49 | % | 46 | % | 65 | % | |||||||||||
| * | On December 17, 2020, the Fund effected a 1:5 reverse share split. All per share data prior to December 17, 2020 has been adjusted to reflect the reverse share split. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
| (c) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
246 Annual Report
LAZARD INTERNATIONAL EQUITY ADVANTAGE PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.32 | $ | 9.99 | $ | 8.70 | $ | 10.92 | $ | 8.91 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.29 | 0.20 | 0.22 | 0.24 | 0.19 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 1.15 | 0.33 | 1.29 | (2.01 | ) | 2.03 | |||||||||||||||
| Total from investment operations | 1.44 | 0.53 | 1.51 | (1.77 | ) | 2.22 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.29 | ) | (0.20 | ) | (0.22 | ) | (0.33 | ) | (0.21 | ) | |||||||||||
| Net realized gains | (0.28 | ) | — | — | (0.12 | ) | — | ||||||||||||||
| Total distributions | (0.57 | ) | (0.20 | ) | (0.22 | ) | (0.45 | ) | (0.21 | ) | |||||||||||
| Net asset value, end of period | $ | 11.19 | $ | 10.32 | $ | 9.99 | $ | 8.70 | $ | 10.92 | |||||||||||
| Total Return (b) | 13.94 | % | 5.41 | % | 17.37 | % | –16.26 | % | 24.98 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 2,855 | $ | 2,472 | $ | 2,408 | $ | 2,051 | $ | 2,508 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | |||||||||||
| Gross expenses | 5.81 | % | 8.57 | % | 8.40 | % | 7.60 | % | 8.91 | % | |||||||||||
| Net investment income (loss) | 2.54 | % | 2.24 | % | 2.30 | % | 2.29 | % | 1.89 | % | |||||||||||
| Portfolio turnover rate | 99 | % | 109 | % | 66 | % | 72 | % | 88 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 247
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.32 | $ | 9.99 | $ | 8.70 | $ | 10.92 | $ | 8.91 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.26 | 0.18 | 0.19 | 0.21 | 0.16 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 1.16 | 0.33 | 1.29 | (2.01 | ) | 2.03 | |||||||||||||||
| Total from investment operations | 1.42 | 0.51 | 1.48 | (1.80 | ) | 2.19 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.26 | ) | (0.18 | ) | (0.19 | ) | (0.30 | ) | (0.18 | ) | |||||||||||
| Net realized gains | (0.28 | ) | — | — | (0.12 | ) | — | ||||||||||||||
| Total distributions | (0.54 | ) | (0.18 | ) | (0.19 | ) | (0.42 | ) | (0.18 | ) | |||||||||||
| Net asset value, end of period | $ | 11.20 | $ | 10.32 | $ | 9.99 | $ | 8.70 | $ | 10.92 | |||||||||||
| Total Return (b) | 13.75 | % | 5.14 | % | 17.03 | % | –16.52 | % | 24.60 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 135 | $ | 119 | $ | 113 | $ | 97 | $ | 116 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.15 | % | 1.15 | % | 1.18 | % | 1.20 | % | 1.20 | % | |||||||||||
| Gross expenses | 9.38 | % | 12.55 | % | 17.72 | % | 17.67 | % | 20.85 | % | |||||||||||
| Net investment income (loss) | 2.29 | % | 1.99 | % | 2.02 | % | 1.99 | % | 1.58 | % | |||||||||||
| Portfolio turnover rate | 99 | % | 109 | % | 66 | % | 72 | % | 88 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
248 Annual Report
LAZARD INTERNATIONAL EQUITY PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 20.02 | $ | 18.61 | $ | 15.68 | $ | 19.61 | $ | 16.20 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.67 | * | 0.21 | 0.37 | 0.37 | 0.26 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.49 | 1.41 | 2.95 | (3.06 | ) | 3.43 | |||||||||||||||
| Total from investment operations | 1.16 | 1.62 | 3.32 | (2.69 | ) | 3.69 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (1.07 | ) | (0.21 | ) | (0.39 | ) | (0.42 | ) | (0.28 | ) | |||||||||||
| Net realized gains | (2.13 | ) | — | — | (0.82 | ) | — | ||||||||||||||
| Total distributions | (3.20 | ) | (0.21 | ) | (0.39 | ) | (1.24 | ) | (0.28 | ) | |||||||||||
| Net asset value, end of period | $ | 17.98 | $ | 20.02 | $ | 18.61 | $ | 15.68 | $ | 19.61 | |||||||||||
| Total Return (b) | 6.00 | %* | 8.76 | % | 21.19 | % | –13.61 | %# | 22.81 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 1,567,011 | $ | 2,812,450 | $ | 2,495,021 | $ | 2,102,735 | $ | 2,835,262 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.82 | % | 0.82 | % | 0.82 | % | 0.81 | % | 0.81 | % | |||||||||||
| Gross expenses | 0.82 | % | 0.82 | % | 0.82 | % | 0.81 | % | 0.81 | % | |||||||||||
| Net investment income (loss) | 3.21 | %* | 1.21 | % | 2.13 | % | 1.94 | % | 1.44 | % | |||||||||||
| Portfolio turnover rate | 34 | % | 38 | % | 37 | % | 36 | % | 31 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 249
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 20.26 | $ | 18.84 | $ | 15.87 | $ | 19.83 | $ | 16.38 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.63 | * | 0.17 | 0.33 | 0.32 | 0.30 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.50 | 1.41 | 2.98 | (3.08 | ) | 3.38 | |||||||||||||||
| Total from investment operations | 1.13 | 1.58 | 3.31 | (2.76 | ) | 3.68 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (1.02 | ) | (0.16 | ) | (0.34 | ) | (0.38 | ) | (0.23 | ) | |||||||||||
| Net realized gains | (2.13 | ) | — | — | (0.82 | ) | — | ||||||||||||||
| Total distributions | (3.15 | ) | (0.16 | ) | (0.34 | ) | (1.20 | ) | (0.23 | ) | |||||||||||
| Net asset value, end of period | $ | 18.24 | $ | 20.26 | $ | 18.84 | $ | 15.87 | $ | 19.83 | |||||||||||
| Total Return (b) | 5.76 | %* | 8.43 | % | 20.89 | % | –13.83 | %# | 22.50 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 93,296 | $ | 120,781 | $ | 257,308 | $ | 227,483 | $ | 275,014 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.07 | % | 1.08 | % | 1.07 | % | 1.06 | % | 1.06 | % | |||||||||||
| Gross expenses | 1.07 | % | 1.08 | % | 1.07 | % | 1.06 | % | 1.06 | % | |||||||||||
| Net investment income (loss) | 2.98 | %* | 0.97 | % | 1.84 | % | 1.67 | % | 1.69 | % | |||||||||||
| Portfolio turnover rate | 34 | % | 38 | % | 37 | % | 36 | % | 31 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
250 Annual Report
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout the period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 19.99 | $ | 18.58 | $ | 15.66 | $ | 19.59 | $ | 16.18 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.67 | * | 0.21 | 0.38 | 0.36 | 0.31 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.50 | 1.41 | 2.93 | (3.05 | ) | 3.38 | |||||||||||||||
| Total from investment operations | 1.17 | 1.62 | 3.31 | (2.69 | ) | 3.69 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (1.08 | ) | (0.21 | ) | (0.39 | ) | (0.42 | ) | (0.28 | ) | |||||||||||
| Net realized gains | (2.13 | ) | — | — | (0.82 | ) | — | ||||||||||||||
| Total distributions | (3.21 | ) | (0.21 | ) | (0.39 | ) | (1.24 | ) | (0.28 | ) | |||||||||||
| Net asset value, end of period | $ | 17.95 | $ | 19.99 | $ | 18.58 | $ | 15.66 | $ | 19.59 | |||||||||||
| Total Return (b) | 6.03 | %* | 8.79 | % | 21.17 | % | –13.62 | %# | 22.85 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 116,187 | $ | 129,419 | $ | 107,574 | $ | 106,516 | $ | 693,744 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.80 | % | 0.81 | % | 0.80 | % | 0.80 | % | 0.80 | % | |||||||||||
| Gross expenses | 0.82 | % | 0.83 | % | 0.82 | % | 0.81 | % | 0.81 | % | |||||||||||
| Net investment income (loss) | 3.20 | %* | 1.21 | % | 2.19 | % | 1.84 | % | 1.68 | % | |||||||||||
| Portfolio turnover rate | 34 | % | 38 | % | 37 | % | 36 | % | 31 | % | |||||||||||
| # | The Portfolio received settlement proceeds from a foreign exchange trading class action lawsuit. The proceeds from the settlement represent a realized gain and were recorded in the period received. There was a 0.16%, 0.16% and 0.33% impact on the total return of the Portfolio’s Institutional, Open and R6 Shares, respectively. |
| * | Includes $0.07 of refunds as a result of European Union dividend withholding tax reclaims filings. There was a 0.42% impact to the Institutional and R6 Share Class and a 0.40% impact to the Open Class on the total return of the Portfolio. There was a 0.31% impact on the net investment income (loss) ratio of the Portfolio. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 251
LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 11.53 | $ | 10.75 | $ | 9.13 | $ | 11.02 | $ | 8.65 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.31 | 0.11 | 0.23 | 0.18 | 0.13 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.06 | 0.78 | 1.62 | (1.82 | ) | 2.31 | |||||||||||||||
| Total from investment operations | 0.37 | 0.89 | 1.85 | (1.64 | ) | 2.44 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.32 | ) | (0.11 | ) | (0.23 | ) | (0.25 | ) | (0.07 | ) | |||||||||||
| Net realized gains | (0.07 | ) | — | — | — | — | |||||||||||||||
| Total distributions | (0.39 | ) | (0.11 | ) | (0.23 | ) | (0.25 | ) | (0.07 | ) | |||||||||||
| Net asset value, end of period | $ | 11.51 | $ | 11.53 | $ | 10.75 | $ | 9.13 | $ | 11.02 | |||||||||||
| Total Return (b) | 3.24 | % | 8.33 | % | 20.32 | % | –14.90 | % | 28.31 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 78,782 | $ | 92,121 | $ | 93,586 | $ | 74,582 | $ | 53,929 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.87 | % | 0.90 | % | 0.97 | % | 1.05 | % | 1.05 | % | |||||||||||
| Gross expenses | 0.87 | % | 0.95 | % | 0.99 | % | 1.05 | % | 1.31 | % | |||||||||||
| Net investment income (loss) | 2.60 | % | 1.10 | % | 2.29 | % | 1.73 | % | 1.27 | % | |||||||||||
| Portfolio turnover rate | 35 | % | 34 | % | 42 | % | 32 | % | 30 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
252 Annual Report
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 11.58 | $ | 10.80 | $ | 9.17 | $ | 11.03 | $ | 8.66 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.24 | 0.08 | 0.19 | 0.15 | 0.10 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.11 | 0.78 | 1.64 | (1.82 | ) | 2.31 | |||||||||||||||
| Total from investment operations | 0.35 | 0.86 | 1.83 | (1.67 | ) | 2.41 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.29 | ) | (0.08 | ) | (0.20 | ) | (0.19 | ) | (0.04 | ) | |||||||||||
| Net realized gains | (0.07 | ) | — | — | — | — | |||||||||||||||
| Total distributions | (0.36 | ) | (0.08 | ) | (0.20 | ) | (0.19 | ) | (0.04 | ) | |||||||||||
| Net asset value, end of period | $ | 11.57 | $ | 11.58 | $ | 10.80 | $ | 9.17 | $ | 11.03 | |||||||||||
| Total Return (b) | 3.03 | % | 8.02 | % | 19.97 | % | –15.16 | % | 27.89 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 4,166 | $ | 2,868 | $ | 2,502 | $ | 1,502 | $ | 2,831 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.15 | % | 1.15 | % | 1.28 | % | 1.35 | % | 1.35 | % | |||||||||||
| Gross expenses | 1.26 | % | 1.38 | % | 1.74 | % | 1.83 | % | 2.07 | % | |||||||||||
| Net investment income (loss) | 2.03 | % | 0.80 | % | 1.87 | % | 1.42 | % | 1.01 | % | |||||||||||
| Portfolio turnover rate | 35 | % | 34 | % | 42 | % | 32 | % | 30 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 253
LAZARD INTERNATIONAL EQUITY VALUE PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | For the Period 10/31/18* to |
|||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.36 | $ | 9.95 | $ | 9.14 | $ | 10.00 | |||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.34 | 0.15 | 0.28 | 0.01 | |||||||||||||||||
| Net realized and unrealized gain (loss) | 0.36 | (0.54 | ) | 1.01 | (0.86 | ) | |||||||||||||||
| Total from investment operations | 0.70 | (0.39 | ) | 1.29 | (0.85 | ) | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.45 | ) | (0.20 | ) | (0.48 | ) | (0.01 | ) | |||||||||||||
| Total distributions | (0.45 | ) | (0.20 | ) | (0.48 | ) | (0.01 | ) | |||||||||||||
| Net asset value, end of period | $ | 9.61 | $ | 9.36 | $ | 9.95 | $ | 9.14 | |||||||||||||
| Total Return (b)(c) | 7.57 | % | –3.81 | % | 14.14 | % | –8.49 | % | |||||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 2,957 | $ | 2,711 | $ | 13,132 | $ | 22,945 | |||||||||||||
| Ratios to average net assets (d): | |||||||||||||||||||||
| Net expenses | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | |||||||||||||
| Gross expenses | 4.96 | % | 6.59 | % | 2.01 | % | 1.34 | % | |||||||||||||
| Net investment income (loss) | 3.34 | % | 1.75 | % | 2.87 | % | 0.72 | % | |||||||||||||
| Portfolio turnover rate | 70 | % | 86 | % | 104 | % | 37 | % | |||||||||||||
The accompanying notes are an integral part of these financial statements.
254 Annual Report
| Selected data for a share of capital stock outstanding | Year Ended | For the Period 10/31/18* to |
|||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.36 | $ | 9.95 | $ | 9.13 | $ | 10.00 | |||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.30 | 0.15 | 0.21 | — | (e) | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.39 | (0.56 | ) | 1.06 | (0.86 | ) | |||||||||||||||
| Total from investment operations | 0.69 | (0.41 | ) | 1.27 | (0.86 | ) | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.43 | ) | (0.18 | ) | (0.45 | ) | (0.01 | ) | |||||||||||||
| Total distributions | (0.43 | ) | (0.18 | ) | (0.45 | ) | (0.01 | ) | |||||||||||||
| Net asset value, end of period | $ | 9.62 | $ | 9.36 | $ | 9.95 | $ | 9.13 | |||||||||||||
| Total Return (b)(c) | 7.42 | % | –4.06 | % | 13.98 | % | –8.63 | % | |||||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 42 | $ | 40 | $ | 141 | $ | 38 | |||||||||||||
| Ratios to average net assets (d): | |||||||||||||||||||||
| Net expenses | 1.20 | % | 1.21 | % | 1.13 | % | 1.20 | % | |||||||||||||
| Gross expenses | 14.79 | % | 14.84 | % | 15.82 | % | 7.91 | % | |||||||||||||
| Net investment income (loss) | 3.03 | % | 1.71 | % | 2.15 | % | 0.03 | % | |||||||||||||
| Portfolio turnover rate | 70 | % | 86 | % | 104 | % | 37 | % | |||||||||||||
| * | The Portfolio commenced operations on October 31, 2018. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (c) | In 2020, the Portfolio’s total return includes a payment by an affiliate of 2.83% for Institutional Shares and 2.71% for Open Shares. Excluding this voluntary reimbursement payment, total return would have been –6.64% for Institutional Shares and –6.77% for Open Shares. |
| (d) | Annualized for a period of less than one year except for non-recurring expenses. |
| (e) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
Annual Report 255
LAZARD INTERNATIONAL QUALITY GROWTH PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | For the Period 12/31/18* to |
|||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 15.59 | $ | 12.69 | $ | 9.98 | $ | 10.00 | |||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.07 | 0.03 | 0.08 | — | |||||||||||||||||
| Net realized and unrealized gain (loss) | 1.48 | 3.01 | 2.95 | (0.02 | ) | ||||||||||||||||
| Total from investment operations | 1.55 | 3.04 | 3.03 | (0.02 | ) | ||||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.03 | ) | (0.01 | ) | (0.27 | ) | — | ||||||||||||||
| Net realized gains | (0.31 | ) | (0.13 | ) | (0.05 | ) | — | ||||||||||||||
| Total distributions | (0.34 | ) | (0.14 | ) | (0.32 | ) | — | ||||||||||||||
| Net asset value, end of period | $ | 16.80 | $ | 15.59 | $ | 12.69 | $ | 9.98 | |||||||||||||
| Total Return (b) | 9.99 | % | 23.95 | % | 30.32 | % | –0.20 | % | |||||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 62,468 | $ | 10,473 | $ | 3,958 | $ | 149 | |||||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 0.85 | % | 0.85 | % | 0.85 | % | 0.00 | % | |||||||||||||
| Gross expenses | 1.24 | % | 3.58 | % | 8.16 | % | 8.45 | % | |||||||||||||
| Net investment income (loss) | 0.44 | % | 0.24 | % | 0.65 | % | 0.00 | % | |||||||||||||
| Portfolio turnover rate | 7 | % | 12 | % | 20 | % | 0 | % | |||||||||||||
The accompanying notes are an integral part of these financial statements.
256 Annual Report
| Selected data for a share of capital stock outstanding | Year Ended | For the Period 10/31/18* to |
|||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | |||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 15.51 | $ | 12.65 | $ | 10.00 | $ | 10.00 | |||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.03 | (0.02 | ) | 0.07 | — | ||||||||||||||||
| Net realized and unrealized gain (loss) | 1.47 | 3.01 | 2.90 | — | (d) | ||||||||||||||||
| Total from investment operations | 1.50 | 2.99 | 2.97 | — | (d) | ||||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | — | — | (0.27 | ) | — | ||||||||||||||||
| Net realized gains | (0.31 | ) | (0.13 | ) | (0.05 | ) | — | ||||||||||||||
| Total distributions | (0.31 | ) | (0.13 | ) | (0.32 | ) | — | ||||||||||||||
| Net asset value, end of period | $ | 16.70 | $ | 15.51 | $ | 12.65 | $ | 10.00 | |||||||||||||
| Total Return (b) | 9.69 | % | 23.63 | % | 29.66 | % | 0.00 | % | |||||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 333 | $ | 291 | $ | 10 | $ | 1 | |||||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 1.10 | % | 1.10 | % | 1.10 | % | 0.00 | % | |||||||||||||
| Gross expenses | 2.76 | % | 9.57 | % | 142.50 | % | 0.40 | % | |||||||||||||
| Net investment income (loss) | 0.18 | % | –0.15 | % | 0.60 | % | 0.00 | % | |||||||||||||
| Portfolio turnover rate | 7 | % | 12 | % | 20 | % | 0 | % | |||||||||||||
| * | The Portfolio commenced operations on December 31, 2018. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (c) | Annualized for a period of less than one year except for non-recurring expenses. |
| (d) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
Annual Report 257
LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.50 | $ | 12.19 | $ | 9.95 | $ | 13.79 | $ | 10.10 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.20 | * | 0.06 | 0.13 | 0.12 | 0.10 | |||||||||||||||
| Net realized and unrealized gain (loss) | 1.33 | 1.53 | 2.42 | (3.51 | ) | 3.59 | |||||||||||||||
| Total from investment operations | 1.53 | 1.59 | 2.55 | (3.39 | ) | 3.69 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.56 | ) | (0.28 | ) | (0.05 | ) | (0.27 | ) | — | ||||||||||||
| Net realized gains | (3.48 | ) | — | (0.26 | ) | (0.18 | ) | — | |||||||||||||
| Total distributions | (4.04 | ) | (0.28 | ) | (0.31 | ) | (0.45 | ) | — | ||||||||||||
| Net asset value, end of period | $ | 10.99 | $ | 13.50 | $ | 12.19 | $ | 9.95 | $ | 13.79 | |||||||||||
| Total Return (b) | 11.83 | %* | 13.44 | % | 26.01 | % | –24.88 | %# | 36.53 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 14,542 | $ | 29,374 | $ | 37,677 | $ | 35,121 | $ | 41,267 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.12 | % | 1.15 | % | 1.14 | % | 1.08 | % | 1.09 | % | |||||||||||
| Gross expenses | 1.24 | % | 1.29 | % | 1.15 | % | 1.08 | % | 1.09 | % | |||||||||||
| Net investment income (loss) | 1.34 | %* | 0.57 | % | 1.14 | % | 0.96 | % | 0.85 | % | |||||||||||
| Portfolio turnover rate | 47 | % | 50 | % | 37 | % | 59 | % | 35 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
258 Annual Report
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.50 | $ | 12.19 | $ | 9.97 | $ | 13.82 | $ | 10.15 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.15 | * | 0.04 | 0.10 | 0.11 | 0.07 | |||||||||||||||
| Net realized and unrealized gain (loss) | 1.35 | 1.52 | 2.43 | (3.54 | ) | 3.60 | |||||||||||||||
| Total from investment operations | 1.50 | 1.56 | 2.53 | (3.43 | ) | 3.67 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.49 | ) | (0.25 | ) | (0.05 | ) | (0.24 | ) | — | ||||||||||||
| Net realized gains | (3.48 | ) | — | (0.26 | ) | (0.18 | ) | — | |||||||||||||
| Total distributions | (3.97 | ) | (0.25 | ) | (0.31 | ) | (0.42 | ) | — | ||||||||||||
| Net asset value, end of period | $ | 11.03 | $ | 13.50 | $ | 12.19 | $ | 9.97 | $ | 13.82 | |||||||||||
| Total Return (b) | 11.61 | %* | 13.15 | % | 25.76 | % | –25.09 | %# | 36.16 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 11,969 | $ | 12,581 | $ | 19,780 | $ | 20,265 | $ | 42,362 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.37 | % | 1.40 | % | 1.39 | % | 1.34 | % | 1.34 | % | |||||||||||
| Gross expenses | 1.51 | % | 1.56 | % | 1.43 | % | 1.34 | % | 1.34 | % | |||||||||||
| Net investment income (loss) | 1.05 | %* | 0.33 | % | 0.86 | % | 0.83 | % | 0.61 | % | |||||||||||
| Portfolio turnover rate | 47 | % | 50 | % | 37 | % | 59 | % | 35 | % | |||||||||||
| # | The Portfolio received settlement proceeds from a foreign exchange trading class action lawsuit. The proceeds from the settlement represented a realized gain and were recorded in the period received. There was a 0.46% and 0.53% impact on the total return of the Portfolio’s Institutional and Open Shares, respectively. |
| * | Includes $0.03 of refunds received as a result of European Union dividend withholding tax reclaims filings. There was a 0.31% impact on the total return of the Portfolio. There was a 0.17% impact on the net investment income (loss) ratio of the Portfolio. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 259
LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 16.83 | $ | 15.38 | $ | 12.89 | $ | 15.70 | $ | 12.44 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.56 | * | 0.17 | 0.24 | 0.21 | 0.17 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.42 | 1.45 | 2.53 | (1.85 | ) | 3.29 | |||||||||||||||
| Total from investment operations | 0.98 | 1.62 | 2.77 | (1.64 | ) | 3.46 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.62 | ) | (0.17 | ) | (0.28 | ) | (0.21 | ) | (0.20 | ) | |||||||||||
| Net realized gains | (0.51 | ) | — | — | (0.96 | ) | — | ||||||||||||||
| Return of capital | (0.31 | ) | — | — | — | — | |||||||||||||||
| Total distributions | (1.44 | ) | (0.17 | ) | (0.28 | ) | (1.17 | ) | (0.20 | ) | |||||||||||
| Net asset value, end of period | $ | 16.37 | $ | 16.83 | $ | 15.38 | $ | 12.89 | $ | 15.70 | |||||||||||
| Total Return (c) | 5.99 | %* | 10.58 | % | 21.55 | % | –10.35 | % | 27.85 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 5,713,405 | $ | 5,270,611 | $ | 5,505,271 | $ | 4,630,334 | $ | 5,911,184 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.80 | % | 0.81 | % | 0.80 | % | 0.80 | % | 0.80 | % | |||||||||||
| Gross expenses | 0.80 | % | 0.81 | % | 0.80 | % | 0.80 | % | 0.80 | % | |||||||||||
| Net investment income (loss) | 3.15 | %* | 1.18 | % | 1.66 | % | 1.36 | % | 1.20 | % | |||||||||||
| Portfolio turnover rate | 31 | % | 37 | % | 36 | % | 40 | % | 44 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
260 Annual Report
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 16.99 | $ | 15.52 | $ | 13.01 | $ | 15.83 | $ | 12.55 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.52 | * | 0.14 | 0.21 | 0.17 | 0.14 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.42 | 1.46 | 2.55 | (1.86 | ) | 3.30 | |||||||||||||||
| Total from investment operations | 0.94 | 1.60 | 2.76 | (1.69 | ) | 3.44 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.60 | ) | (0.13 | ) | (0.25 | ) | (0.17 | ) | (0.16 | ) | |||||||||||
| Net realized gains | (0.51 | ) | — | — | (0.96 | ) | — | ||||||||||||||
| Return of capital | (0.29 | ) | — | — | — | — | |||||||||||||||
| Total distributions | (1.40 | ) | (0.13 | ) | (0.25 | ) | (1.13 | ) | (0.16 | ) | |||||||||||
| Net asset value, end of period | $ | 16.53 | $ | 16.99 | $ | 15.52 | $ | 13.01 | $ | 15.83 | |||||||||||
| Total Return (b) | 5.67 | %* | 10.34 | % | 21.21 | % | –10.55 | % | 27.44 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 460,862 | $ | 535,285 | $ | 682,035 | $ | 832,548 | $ | 1,216,861 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.06 | % | 1.06 | % | 1.06 | % | 1.05 | % | 1.06 | % | |||||||||||
| Gross expenses | 1.06 | % | 1.06 | % | 1.06 | % | 1.05 | % | 1.06 | % | |||||||||||
| Net investment income (loss) | 2.88 | %* | 0.94 | % | 1.47 | % | 1.10 | % | 0.97 | % | |||||||||||
| Portfolio turnover rate | 31 | % | 37 | % | 36 | % | 40 | % | 44 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 261
| Selected data for a share of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout the period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 16.85 | $ | 15.39 | $ | 12.90 | $ | 15.71 | $ | 12.45 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.56 | * | 0.17 | 0.23 | 0.21 | 0.16 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.41 | 1.46 | 2.54 | (1.85 | ) | 3.30 | |||||||||||||||
| Total from investment operations | 0.97 | 1.63 | 2.77 | (1.64 | ) | 3.46 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.62 | ) | (0.17 | ) | (0.28 | ) | (0.21 | ) | (0.20 | ) | |||||||||||
| Net realized gains | (0.51 | ) | — | — | (0.96 | ) | — | ||||||||||||||
| Return of capital | (0.31 | ) | — | — | — | — | |||||||||||||||
| Total distributions | (1.44 | ) | (0.17 | ) | (0.28 | ) | (1.17 | ) | (0.20 | ) | |||||||||||
| Net asset value, end of period | $ | 16.38 | $ | 16.85 | $ | 15.39 | $ | 12.90 | $ | 15.71 | |||||||||||
| Total Return (b) | 5.93 | %* | 10.64 | % | 21.54 | % | –10.35 | % | 27.82 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 124,625 | $ | 118,678 | $ | 120,118 | $ | 97,394 | $ | 110,383 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.80 | % | 0.81 | % | 0.80 | % | 0.80 | % | 0.80 | % | |||||||||||
| Gross expenses | 0.81 | % | 0.82 | % | 0.81 | % | 0.81 | % | 0.82 | % | |||||||||||
| Net investment income (loss) | 3.16 | %* | 1.16 | % | 1.61 | % | 1.34 | % | 1.15 | % | |||||||||||
| Portfolio turnover rate | 31 | % | 37 | % | 36 | % | 40 | % | 44 | % | |||||||||||
| * | Includes $0.06 of refunds received as a result of European Union dividend withholding tax reclaims filings. There was a 0.39% impact to the Institutional Share Class and R6 Share Class and a 0.38% impact to the Open Share Class on the total return of the Portfolio. There was a 0.33% impact on the net investment income (loss) ratio of the Portfolio. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
262 Annual Report
LAZARD MANAGED EQUITY VOLATILITY PORTFOLIO
| Selected data for a share of capital stock outstanding |
Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 11.78 | $ | 12.66 | $ | 10.55 | $ | 11.57 | $ | 9.99 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.21 | 0.21 | 0.21 | 0.19 | 0.19 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.01 | (0.87 | ) | 2.08 | (1.03 | ) | 1.87 | ||||||||||||||
| Total from investment operations | 2.22 | (0.66 | ) | 2.29 | (0.84 | ) | 2.06 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.39 | ) | (0.09 | ) | (0.18 | ) | (0.16 | ) | (0.17 | ) | |||||||||||
| Net realized gains | (0.44 | ) | (0.13 | ) | — | (b) | (0.02 | ) | (0.31 | ) | |||||||||||
| Total distributions | (0.83 | ) | (0.22 | ) | (0.18 | ) | (0.18 | ) | (0.48 | ) | |||||||||||
| Net asset value, end of period | $ | 13.17 | $ | 11.78 | $ | 12.66 | $ | 10.55 | $ | 11.57 | |||||||||||
| Total Return (c) | 19.00 | % | –5.18 | % | 21.69 | % | –7.21 | % | 20.57 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 31,040 | $ | 25,737 | $ | 34,354 | $ | 20,709 | $ | 4,180 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | |||||||||||
| Gross expenses | 1.20 | % | 1.23 | % | 1.36 | % | 1.64 | % | 6.51 | % | |||||||||||
| Net investment income (loss) | 1.62 | % | 1.83 | % | 1.72 | % | 1.66 | % | 1.71 | % | |||||||||||
| Portfolio turnover rate | 110 | % | 138 | % | 103 | % | 122 | % | 87 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 263
| Selected data for a share of capital stock outstanding |
Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 11.78 | $ | 12.65 | $ | 10.54 | $ | 11.56 | $ | 9.99 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.18 | 0.19 | 0.17 | 0.15 | 0.16 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.00 | (0.87 | ) | 2.08 | (1.02 | ) | 1.85 | ||||||||||||||
| Total from investment operations | 2.18 | (0.68 | ) | 2.25 | (0.87 | ) | 2.01 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.36 | ) | (0.06 | ) | (0.14 | ) | (0.13 | ) | (0.13 | ) | |||||||||||
| Net realized gains | (0.44 | ) | (0.13 | ) | — | (b) | (0.02 | ) | (0.31 | ) | |||||||||||
| Total distributions | (0.80 | ) | (0.19 | ) | (0.14 | ) | (0.15 | ) | (0.44 | ) | |||||||||||
| Net asset value, end of period | $ | 13.16 | $ | 11.78 | $ | 12.65 | $ | 10.54 | $ | 11.56 | |||||||||||
| Total Return (c) | 18.62 | % | –5.34 | % | 21.36 | % | –7.50 | % | 20.11 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 87 | $ | 76 | $ | 231 | $ | 183 | $ | 315 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.00 | % | 1.00 | % | 1.03 | % | 1.05 | % | 1.05 | % | |||||||||||
| Gross expenses | 6.85 | % | 4.39 | % | 5.81 | % | 5.86 | % | 12.07 | % | |||||||||||
| Net investment income (loss) | 1.39 | % | 1.63 | % | 1.46 | % | 1.28 | % | 1.42 | % | |||||||||||
| Portfolio turnover rate | 110 | % | 138 | % | 103 | % | 122 | % | 87 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Amount is less than $0.01 per share. |
| (c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
264 Annual Report
LAZARD US EQUITY CONCENTRATED PORTFOLIO
| Selected data for a share of capital stock outstanding |
Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 18.05 | $ | 16.84 | $ | 12.89 | $ | 15.31 | $ | 14.16 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.08 | 0.12 | 0.13 | 0.18 | 0.14 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 4.55 | 1.39 | 3.96 | (1.11 | ) | 2.05 | |||||||||||||||
| Total from investment operations | 4.63 | 1.51 | 4.09 | (0.93 | ) | 2.19 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.08 | ) | (0.11 | ) | (0.14 | ) | (0.20 | ) | (0.14 | ) | |||||||||||
| Net realized gains | (2.90 | ) | (0.19 | ) | — | (1.29 | ) | (0.90 | ) | ||||||||||||
| Total distributions | (2.98 | ) | (0.30 | ) | (0.14 | ) | (1.49 | ) | (1.04 | ) | |||||||||||
| Net asset value, end of period | $ | 19.70 | $ | 18.05 | $ | 16.84 | $ | 12.89 | $ | 15.31 | |||||||||||
| Total Return (b) | 26.02 | % | 8.98 | % | 31.72 | % | –6.07 | % | 15.49 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 1,943,232 | $ | 1,936,367 | $ | 1,271,509 | $ | 1,040,851 | $ | 1,508,581 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.76 | % | 0.76 | % | 0.76 | % | 0.75 | % | 0.75 | % | |||||||||||
| Gross expenses | 0.76 | % | 0.76 | % | 0.76 | % | 0.75 | % | 0.75 | % | |||||||||||
| Net investment income (loss) | 0.38 | % | 0.72 | % | 0.85 | % | 1.14 | % | 0.90 | % | |||||||||||
| Portfolio turnover rate | 32 | % | 43 | % | 33 | % | 69 | % | 86 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 265
| Selected data for a share of capital stock outstanding |
Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 18.19 | $ | 16.98 | $ | 12.99 | $ | 15.42 | $ | 14.25 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.03 | 0.08 | 0.09 | 0.13 | 0.10 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 4.58 | 1.38 | 3.99 | (1.11 | ) | 2.07 | |||||||||||||||
| Total from investment operations | 4.61 | 1.46 | 4.08 | (0.98 | ) | 2.17 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.02 | ) | (0.06 | ) | (0.09 | ) | (0.16 | ) | (0.10 | ) | |||||||||||
| Net realized gains | (2.90 | ) | (0.19 | ) | — | (1.29 | ) | (0.90 | ) | ||||||||||||
| Total distributions | (2.92 | ) | (0.25 | ) | (0.09 | ) | (1.45 | ) | (1.00 | ) | |||||||||||
| Net asset value, end of period | $ | 19.88 | $ | 18.19 | $ | 16.98 | $ | 12.99 | $ | 15.42 | |||||||||||
| Total Return (b) | 25.72 | % | 8.63 | % | 31.42 | % | –6.35 | % | 15.22 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 35,649 | $ | 34,358 | $ | 46,840 | $ | 50,981 | $ | 87,603 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.02 | % | 1.02 | % | 1.04 | % | 1.03 | % | 1.03 | % | |||||||||||
| Gross expenses | 1.02 | % | 1.02 | % | 1.04 | % | 1.03 | % | 1.03 | % | |||||||||||
| Net investment income (loss) | 0.13 | % | 0.47 | % | 0.55 | % | 0.85 | % | 0.62 | % | |||||||||||
| Portfolio turnover rate | 32 | % | 43 | % | 33 | % | 69 | % | 86 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
266 Annual Report
| Selected data for a share of capital stock outstanding |
Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 18.09 | $ | 16.89 | $ | 12.92 | $ | 15.34 | $ | 14.18 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.08 | 0.12 | 0.13 | 0.17 | 0.14 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 4.56 | 1.38 | 3.98 | (1.10 | ) | 2.06 | |||||||||||||||
| Total from investment operations | 4.64 | 1.50 | 4.11 | (0.93 | ) | 2.20 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.07 | ) | (0.11 | ) | (0.14 | ) | (0.20 | ) | (0.14 | ) | |||||||||||
| Net realized gains | (2.90 | ) | (0.19 | ) | — | (1.29 | ) | (0.90 | ) | ||||||||||||
| Total distributions | (2.97 | ) | (0.30 | ) | (0.14 | ) | (1.49 | ) | (1.04 | ) | |||||||||||
| Net asset value, end of period | $ | 19.76 | $ | 18.09 | $ | 16.89 | $ | 12.92 | $ | 15.34 | |||||||||||
| Total Return (b) | 26.06 | % | 8.90 | % | 31.79 | % | –6.08 | % | 15.52 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 2,720 | $ | 2,177 | $ | 2,091 | $ | 1,900 | $ | 361 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.76 | % | 0.76 | % | 0.76 | % | 0.75 | % | 0.75 | % | |||||||||||
| Gross expenses | 0.87 | % | 0.92 | % | 1.20 | % | 2.16 | % | 8.34 | % | |||||||||||
| Net investment income (loss) | 0.40 | % | 0.73 | % | 0.83 | % | 1.15 | % | 0.91 | % | |||||||||||
| Portfolio turnover rate | 32 | % | 43 | % | 33 | % | 69 | % | 86 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 267
LAZARD US EQUITY FOCUS PORTFOLIO
| Selected data for a share of capital stock outstanding |
Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.37 | $ | 12.03 | $ | 10.23 | $ | 12.43 | $ | 11.63 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.08 | 0.11 | 0.13 | 0.14 | 0.14 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 3.54 | 1.94 | 3.11 | (0.55 | ) | 1.94 | |||||||||||||||
| Total from investment operations | 3.62 | 2.05 | 3.24 | (0.41 | ) | 2.08 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.05 | ) | (0.10 | ) | (0.23 | ) | (0.29 | ) | (0.21 | ) | |||||||||||
| Net realized gains | (0.87 | ) | (0.61 | ) | (1.21 | ) | (1.50 | ) | (1.07 | ) | |||||||||||
| Total distributions | (0.92 | ) | (0.71 | ) | (1.44 | ) | (1.79 | ) | (1.28 | ) | |||||||||||
| Net asset value, end of period | $ | 16.07 | $ | 13.37 | $ | 12.03 | $ | 10.23 | $ | 12.43 | |||||||||||
| Total Return (b) | 27.36 | % | 17.29 | % | 31.67 | % | –3.12 | % | 18.17 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 42,755 | $ | 31,075 | $ | 32,661 | $ | 60,629 | $ | 72,958 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.70 | % | 0.70 | % | 0.75 | % | 0.75 | % | 0.75 | % | |||||||||||
| Gross expenses | 0.76 | % | 1.26 | % | 0.92 | % | 0.92 | % | 0.95 | % | |||||||||||
| Net investment income (loss) | 0.54 | % | 0.91 | % | 1.07 | % | 1.10 | % | 1.10 | % | |||||||||||
| Portfolio turnover rate | 27 | % | 54 | % | 45 | % | 62 | % | 74 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
268 Annual Report
| Selected data for a share of capital stock outstanding |
Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.45 | $ | 12.09 | $ | 10.28 | $ | 12.48 | $ | 11.68 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.04 | 0.08 | 0.10 | 0.10 | 0.10 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 3.55 | 1.96 | 3.11 | (0.54 | ) | 1.94 | |||||||||||||||
| Total from investment operations | 3.59 | 2.04 | 3.21 | (0.44 | ) | 2.04 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.01 | ) | (0.07 | ) | (0.19 | ) | (0.26 | ) | (0.17 | ) | |||||||||||
| Net realized gains | (0.87 | ) | (0.61 | ) | (1.21 | ) | (1.50 | ) | (1.07 | ) | |||||||||||
| Total distributions | (0.88 | ) | (0.68 | ) | (1.40 | ) | (1.76 | ) | (1.24 | ) | |||||||||||
| Net asset value, end of period | $ | 16.16 | $ | 13.45 | $ | 12.09 | $ | 10.28 | $ | 12.48 | |||||||||||
| Total Return (b) | 26.96 | % | 17.08 | % | 31.25 | % | –3.40 | % | 17.75 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 1,569 | $ | 1,285 | $ | 1,117 | $ | 881 | $ | 1,013 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.95 | % | 0.95 | % | 1.03 | % | 1.05 | % | 1.05 | % | |||||||||||
| Gross expenses | 1.22 | % | 1.79 | % | 2.14 | % | 2.33 | % | 2.30 | % | |||||||||||
| Net investment income (loss) | 0.29 | % | 0.67 | % | 0.79 | % | 0.80 | % | 0.79 | % | |||||||||||
| Portfolio turnover rate | 27 | % | 54 | % | 45 | % | 62 | % | 74 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 269
| Selected data for a share of capital stock outstanding |
Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.38 | $ | 12.04 | $ | 10.23 | $ | 12.43 | $ | 11.63 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.08 | 0.11 | 0.13 | 0.14 | 0.14 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 3.54 | 1.94 | 3.12 | (0.55 | ) | 1.94 | |||||||||||||||
| Total from investment operations | 3.62 | 2.05 | 3.25 | (0.41 | ) | 2.08 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.05 | ) | (0.10 | ) | (0.23 | ) | (0.29 | ) | (0.21 | ) | |||||||||||
| Net realized gains | (0.87 | ) | (0.61 | ) | (1.21 | ) | (1.50 | ) | (1.07 | ) | |||||||||||
| Total distributions | (0.92 | ) | (0.71 | ) | (1.44 | ) | (1.79 | ) | (1.28 | ) | |||||||||||
| Net asset value, end of period | $ | 16.08 | $ | 13.38 | $ | 12.04 | $ | 10.23 | $ | 12.43 | |||||||||||
| Total Return (b) | 27.34 | % | 17.28 | % | 31.76 | % | –3.13 | % | 18.16 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 36,066 | $ | 20,747 | $ | 10,609 | $ | 10,056 | $ | 11,394 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.70 | % | 0.70 | % | 0.74 | % | 0.75 | % | 0.75 | % | |||||||||||
| Gross expenses | 0.76 | % | 1.27 | % | 1.00 | % | 1.01 | % | 1.05 | % | |||||||||||
| Net investment income (loss) | 0.52 | % | 0.91 | % | 1.09 | % | 1.10 | % | 1.12 | % | |||||||||||
| Portfolio turnover rate | 27 | % | 54 | % | 45 | % | 62 | % | 74 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
270 Annual Report
LAZARD US SMALL-MID CAP EQUITY PORTFOLIO
| Selected data for a share of capital stock outstanding |
Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.42 | $ | 13.64 | $ | 10.83 | $ | 14.65 | $ | 14.50 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.01 | 0.04 | 0.06 | 0.05 | 0.06 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.81 | 0.82 | 3.19 | (2.00 | ) | 1.95 | |||||||||||||||
| Total from investment operations | 2.82 | 0.86 | 3.25 | (1.95 | ) | 2.01 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.03 | ) | (0.02 | ) | (0.03 | ) | (0.04 | ) | (0.09 | ) | |||||||||||
| Net realized gains | (2.24 | ) | (0.06 | ) | (0.41 | ) | (1.83 | ) | (1.77 | ) | |||||||||||
| Total distributions | (2.27 | ) | (0.08 | ) | (0.44 | ) | (1.87 | ) | (1.86 | ) | |||||||||||
| Net asset value, end of period | $ | 14.97 | $ | 14.42 | $ | 13.64 | $ | 10.83 | $ | 14.65 | |||||||||||
| Total Return (b) | 19.91 | % | 6.44 | % | 30.00 | % | –13.27 | % | 14.12 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 94,517 | $ | 91,984 | $ | 108,112 | $ | 113,677 | $ | 176,975 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.94 | % | 0.98 | % | 0.92 | % | 0.87 | % | 0.87 | % | |||||||||||
| Gross expenses | 0.94 | % | 0.98 | % | 0.92 | % | 0.87 | % | 0.87 | % | |||||||||||
| Net investment income (loss) | 0.05 | % | 0.31 | % | 0.46 | % | 0.35 | % | 0.39 | % | |||||||||||
| Portfolio turnover rate | 66 | % | 80 | % | 90 | % | 81 | % | 79 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 271
| Selected data for a share of capital stock outstanding |
Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.25 | $ | 12.58 | $ | 10.03 | $ | 13.72 | $ | 13.68 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | (0.04 | ) | — | (c) | 0.01 | 0.01 | 0.01 | ||||||||||||||
| Net realized and unrealized gain (loss) | 2.59 | 0.75 | 2.95 | (1.87 | ) | 1.84 | |||||||||||||||
| Total from investment operations | 2.55 | 0.75 | 2.96 | (1.86 | ) | 1.85 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | — | (c) | (0.02 | ) | — | — | (c) | (0.04 | ) | ||||||||||||
| Net realized gains | (2.24 | ) | (0.06 | ) | (0.41 | ) | (1.83 | ) | (1.77 | ) | |||||||||||
| Total distributions | (2.24 | ) | (0.08 | ) | (0.41 | ) | (1.83 | ) | (1.81 | ) | |||||||||||
| Net asset value, end of period | $ | 13.56 | $ | 13.25 | $ | 12.58 | $ | 10.03 | $ | 13.72 | |||||||||||
| Total Return (b) | 19.59 | % | 6.10 | % | 29.51 | % | –13.49 | % | 13.82 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 10,798 | $ | 10,965 | $ | 14,643 | $ | 13,726 | $ | 25,973 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.22 | % | 1.28 | % | 1.25 | % | 1.18 | % | 1.17 | % | |||||||||||
| Gross expenses | 1.22 | % | 1.28 | % | 1.25 | % | 1.18 | % | 1.17 | % | |||||||||||
| Net investment income (loss) | –0.24 | % | — | %(d) | 0.11 | % | 0.04 | % | 0.09 | % | |||||||||||
| Portfolio turnover rate | 66 | % | 80 | % | 90 | % | 81 | % | 79 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
272 Annual Report
| Selected data for a share of capital stock outstanding |
Year Ended | For the Period 1/8/20* |
|||||||||||||||||||
| throughout each period | 12/31/21 | to 12/31/20 | |||||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.42 | $ | 13.62 | |||||||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.01 | 0.04 | |||||||||||||||||||
| Net realized and unrealized gain (loss) | 2.82 | 0.84 | |||||||||||||||||||
| Total from investment operations | 2.83 | 0.88 | |||||||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.03 | ) | (0.02 | ) | |||||||||||||||||
| Net realized gains | (2.24 | ) | (0.06 | ) | |||||||||||||||||
| Total distributions | (2.27 | ) | (0.08 | ) | |||||||||||||||||
| Net asset value, end of period | $ | 14.98 | $ | 14.42 | |||||||||||||||||
| Total Return (b) | 19.95 | % | 6.59 | % | |||||||||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 718 | $ | 684 | |||||||||||||||||
| Ratios to average net assets (e): | |||||||||||||||||||||
| Net expenses | 0.94 | % | 0.96 | % | |||||||||||||||||
| Gross expenses | 2.53 | % | 1.65 | % | |||||||||||||||||
| Net investment income (loss) | 0.05 | % | 0.34 | % | |||||||||||||||||
| Portfolio turnover rate | 66 | % | 80 | % | |||||||||||||||||
| * | The inception date for the R6 shares was January 8, 2020. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (c) | Amount is less than $0.01 per share. |
| (d) | Amount is less than 0.005% |
| (e) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
Annual Report 273
LAZARD US SUSTAINABLE EQUITY PORTFOLIO
| Selected data for a share of capital stock outstanding |
Year Ended | For the Period 6/30/20 |
|||||||||||||||||||
| throughout each period | 12/31/21 | to 12/31/20* | |||||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 12.20 | $ | 10.00 | |||||||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.06 | 0.04 | |||||||||||||||||||
| Net realized and unrealized gain (loss) | 3.47 | 2.23 | |||||||||||||||||||
| Total from investment operations | 3.53 | 2.27 | |||||||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.08 | ) | (0.04 | ) | |||||||||||||||||
| Net realized gains | (0.24 | ) | (0.03 | ) | |||||||||||||||||
| Total distributions | (0.32 | ) | (0.07 | ) | |||||||||||||||||
| Net asset value, end of period | $ | 15.41 | $ | 12.20 | |||||||||||||||||
| Total Return (b) | 29.01 | % | 22.69 | % | |||||||||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 14,687 | $ | 11,490 | |||||||||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 0.75 | % | 0.75 | % | |||||||||||||||||
| Gross expenses | 2.08 | % | 2.49 | % | |||||||||||||||||
| Net investment income (loss) | 0.43 | % | 0.65 | % | |||||||||||||||||
| Portfolio turnover rate | 8 | % | 5 | % | |||||||||||||||||
The accompanying notes are an integral part of these financial statements.
274 Annual Report
| Selected data for a share of capital stock outstanding |
Year Ended | For the Period 6/30/20 |
|||||||||||||||||||
| throughout each period | 12/31/21 | to 12/31/20* | |||||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 12.21 | $ | 10.00 | |||||||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.02 | 0.02 | |||||||||||||||||||
| Net realized and unrealized gain (loss) | 3.48 | 2.23 | |||||||||||||||||||
| Total from investment operations | 3.50 | 2.25 | |||||||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.04 | ) | (0.01 | ) | |||||||||||||||||
| Net realized gains | (0.24 | ) | (0.03 | ) | |||||||||||||||||
| Total distributions | (0.28 | ) | (0.04 | ) | |||||||||||||||||
| Net asset value, end of period | $ | 15.43 | $ | 12.21 | |||||||||||||||||
| Total Return (b) | 28.75 | % | 22.48 | % | |||||||||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 655 | $ | 128 | |||||||||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 1.00 | % | 1.00 | % | |||||||||||||||||
| Gross expenses | 3.15 | % | 5.31 | % | |||||||||||||||||
| Net investment income (loss) | 0.17 | % | 0.43 | % | |||||||||||||||||
| Portfolio turnover rate | 8 | % | 5 | % | |||||||||||||||||
| * | The Portfolio commenced operations on June 30, 2020. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (c) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
Annual Report 275
LAZARD US SYSTEMATIC SMALL CAP EQUITY PORTFOLIO
| Selected data for a share of capital stock outstanding |
For the Period 10/29/21* |
||||||||||||||||||||
| throughout each period | to 12/31/21 | ||||||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.00 | |||||||||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.02 | ||||||||||||||||||||
| Net realized and unrealized gain (loss) | 0.26 | ||||||||||||||||||||
| Total from investment operations | 0.28 | ||||||||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.02 | ) | |||||||||||||||||||
| Total distributions | (0.02 | ) | |||||||||||||||||||
| Net asset value, end of period | $ | 10.26 | |||||||||||||||||||
| Total Return (b) | 2.83 | % | |||||||||||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 3,983 | |||||||||||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 0.90 | % | |||||||||||||||||||
| Gross expenses | 5.13 | % | |||||||||||||||||||
| Net investment income (loss) | 1.39 | % | |||||||||||||||||||
| Portfolio turnover rate | 22 | % | |||||||||||||||||||
The accompanying notes are an integral part of these financial statements.
276 Annual Report
| Selected data for a share of capital stock outstanding |
For the Period 10/29/21* |
||||||||||||||||||||
| throughout each period | to 12/31/21 | ||||||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.00 | |||||||||||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.02 | ||||||||||||||||||||
| Net realized and unrealized gain (loss) | 0.26 | ||||||||||||||||||||
| Total from investment operations | 0.28 | ||||||||||||||||||||
| Net asset value, end of period | $ | 10.28 | |||||||||||||||||||
| Total Return (b) | 2.80 | % | |||||||||||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 120 | |||||||||||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 1.15 | % | |||||||||||||||||||
| Gross expenses | 13.16 | % | |||||||||||||||||||
| Net investment income (loss) | 1.14 | % | |||||||||||||||||||
| Portfolio turnover rate | 22 | % | |||||||||||||||||||
| * | The Portfolio commenced operations on October 29, 2021. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (c) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
Annual Report 277
The Lazard Funds, Inc. Notes to Financial Statements
December 31, 2021 (unaudited)
1. Organization
The Lazard Funds, Inc. was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of December 31, 2021, the Fund was comprised of thirty no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of the Lazard Developing Markets Equity Portfolio (“Developing Markets Equity”), Lazard Emerging Markets Core Equity Portfolio (“Emerging Markets Core Equity”), Lazard Emerging Markets Equity Advantage Portfolio (“Emerging Markets Equity Advantage”), Lazard Emerging Markets Equity Portfolio (“Emerging Markets Equity”), Lazard Emerging Markets Strategic Equity Portfolio (“Emerging Markets Strategic Equity”, which was formerly the Lazard Emerging Markets Equity Blend Portfolio), Lazard Equity Franchise Portfolio (“Equity Franchise”), Lazard Global Equity Select Portfolio (“Global Equity Select”), Lazard Global Listed Infrastructure Portfolio (“Global Listed Infrastructure”), Lazard Global Strategic Equity Portfolio (“Global Strategic Equity”), Lazard International Equity Advantage Portfolio (“International Equity Advantage”), Lazard International Equity Portfolio (“International Equity”), Lazard International Equity Select Portfolio (“International Equity Select”), Lazard International Equity Value Portfolio (“International Equity Value”), Lazard International Small Cap Equity Portfolio (“International Small Cap Equity”), Lazard International Quality Growth Portfolio (“International Quality Growth”), Lazard International Strategic Equity Portfolio (“International Strategic Equity”), Lazard Managed Equity Volatility Portfolio (“Managed Equity Volatility”), Lazard US Equity Concentrated Portfolio (“US Equity Concentrated”), Lazard US Equity Focus Portfolio (“US Equity Focus”), Lazard US Small-Mid Cap Equity Portfolio (“US Small-Mid Cap Equity”), Lazard US Sustainable Equity Portfolio (“US Sustainable Equity”), and Lazard US Systematic Small Cap Equity Portfolio (“US Systematic Small Cap Equity,” which commenced operations on October 29, 2021). The financial statements of the other eight Portfolios are presented separately.
278 Annual Report
The Portfolios, other than Equity Franchise, International Equity Value, US Equity Concentrated and US Equity Focus, are operated as “diversified” funds, as defined in the 1940 Act.
Each Portfolio currently offers Institutional Shares and Open Shares, and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum investment requirements; eligibility requirements for R6 Shares; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Portfolios’ prospectus).
2. Significant Accounting Policies
The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in accordance with Accounting Standards Codification Topic 946.The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:
(a) Valuation of Investments—Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants, are valued at the last reported sales price (for US listed equity securities) or the closing price (for non-US listed equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the Nasdaq, the Nasdaq Official Closing Price. If there is no available closing price for a non-US listed equity security, the last reported sales price is used. If there are no reported sales of a security on the valuation date, the security is valued at the most recent quoted bid price on such date reported by such principal exchange or market. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s net asset value (“NAV”) per share.
Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trading on certain non-US securities exchanges or markets, such as those in Europe and Asia, ordinarily may be
Annual Report 279
completed before the close of business on each business day in New York (i.e., a day on which the New York Stock Exchange (the “NYSE”) is open). In addition, securities trading in a particular non-US country or countries, may not take place on all business days in New York and on which the NAV of a Portfolio is calculated.
If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when a Portfolio’s NAV is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Fund’s Board of Directors (the “Board”). The fair value of non-US equity securities may be determined with the assistance of an independent pricing service using correlations between the movement of prices of such securities and indices of US securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. Certain non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of the Portfolio’s assets on days when Portfolio shareholders may not be able to buy or sell Portfolio shares.
The Valuation Committee of the Investment Manager, which is subject to the oversight of the Board, may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio management team also will be considered.
The effect of using fair value pricing is that the NAV of a Portfolio will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology
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to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.
(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income is recorded on the ex-dividend date except for certain dividends from non-US securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by a Portfolio. Interest income, if any, is accrued daily.
A Portfolio may be subject to taxes imposed by non-US countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized and/or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income earned or capital gains (realized and/or unrealized) from the applicable portfolio securities.
As a result of several court cases in certain countries across the European Union, some Portfolios have filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative proceedings by the local jurisdictions’ tax authorities within the European Union, as well as a number of related judicial proceedings. Uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these claims, and the potential timing of payment, and accordingly no amounts are reflected in the financial statements until a positive decision has been awarded, at which time the amount will be recorded within dividend income on the Statement of Operations. Such amounts, if and when recorded, could result in an increase in a Portfolio’s NAV per share.
(c) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Fund are maintained in US dollars. Portfolio securities and other assets and liabilities denominated in
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a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.
The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments.
A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Daily fluctuations in the value of forward currency contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, the Portfolio records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed. Net realized gain (loss) on foreign currency transactions and forward currency contracts represent net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency translations reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.
During the year ended December 31, 2021, the Global Listed Infrastructure Portfolio traded in forward currency contracts.
(d) Federal Income Taxes—The Fund’s policy is for each Portfolio to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute all of its taxable income, including any
282 Annual Report
net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.
At December 31, 2021, the following Portfolios had unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains with no expiration date as follows:
| Portfolio | Short-Term | Long-Term | ||||||
| Developing Markets Equity | $ | 61,027,132 | $ | 51,531,574 | ||||
| Emerging Markets Core Equity | 6,876,277 | 9,280,949 | ||||||
| Emerging Markets Equity | 178,253,778 | 818,167,769 | ||||||
| Emerging Markets Strategic Equity | 9,706,202 | 34,953,494 | ||||||
| International Equity Value | 600,038 | — | ||||||
During the year ended December 31, 2021, the following Portfolios utilized realized capital loss carryovers from previous years as follows:
| Portfolio | Amounts | |||
| Developing Markets Equity | $ | 1,462,501 | ||
| Emerging Markets Core Equity | 9,749,820 | |||
| Emerging Markets Equity | 462,868,679 | |||
| Emerging Markets Strategic Equity | 9,813,141 | |||
| International Equity Advantage | 274,902 | |||
| International Equity | 63,023,310 | |||
| International Equity Select | 3,555,561 | |||
| International Equity Value | 300,441 | |||
| International Small Cap Equity | 1,090,853 | |||
| International Strategic Equity | 68,613,914 | |||
| Managed Equity Volatility | 1,476,429 | |||
| US Small-Mid Cap Equity | 4,100,216 | |||
Under current tax law, post-October capital losses or certain late-year ordinary losses, as defined by the Code, within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the tax year ended December 31, 2021, the following Portfolios elected to defer such losses as follows:
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| Post-October | Late-Year | |||||||
| Capital Loss | Ordinary Loss | |||||||
| Portfolio | Deferral | Deferral | ||||||
| Developing Markets Equity | $ | — | $ | 126,847 | ||||
| Emerging Markets Equity | — | 356,726 | ||||||
| Emerging Markets Strategic Equity | — | 13,726 | ||||||
| Global Equity Select | 3,363 | 1,312 | ||||||
| International Quality Growth | — | 6,730 | ||||||
| International Small Cap Equity | — | 19,273 | ||||||
| International Strategic Equity | 14,948,987 | 7,408,056 | ||||||
For federal income tax purposes, the aggregate cost, aggregate gross unrealized appreciation, aggregate gross unrealized depreciation and the net unrealized appreciation (depreciation) were as follows:
| Aggregate | Aggregate | Net | ||||||||||||||
| Gross | Gross | Unrealized | ||||||||||||||
| Aggregate | Unrealized | Unrealized | Appreciation | |||||||||||||
| Portfolio | Cost | Appreciation | Depreciation | (Depreciation) | ||||||||||||
| Developing Markets Equity | $ | 121,927,065 | $ | 45,289,031 | $ | 9,315,772 | $ | 35,973,259 | ||||||||
| Emerging Markets Core Equity | 122,171,391 | 47,761,839 | 10,439,757 | 37,322,082 | ||||||||||||
| Emerging Markets Equity Advantage | 69,697,219 | 5,980,918 | 6,542,657 | (561,739 | ) | |||||||||||
| Emerging Markets Equity | 3,142,642,395 | 779,297,160 | 284,355,682 | 494,941,478 | ||||||||||||
| Emerging Markets Strategic Equity | 58,882,664 | 8,072,464 | 6,486,372 | 1,586,092 | ||||||||||||
| Equity Franchise | 91,646,460 | 15,389,092 | 1,718,322 | 13,670,770 | ||||||||||||
| Global Equity Select | 69,983,784 | 42,896,563 | 1,797,828 | 41,098,735 | ||||||||||||
| Global Listed Infrastructure | 6,754,177,468 | 1,262,480,644 | 384,487,440 | 877,993,204 | ||||||||||||
| Global Strategic Equity | 15,400,029 | 3,236,230 | 858,552 | 2,377,678 | ||||||||||||
| International Equity Advantage | 2,684,905 | 425,614 | 92,436 | 333,178 | ||||||||||||
| International Equity | 1,440,711,570 | 394,996,660 | 58,124,522 | 336,872,138 | ||||||||||||
| International Equity Select | 69,859,752 | 16,258,692 | 3,551,449 | 12,707,243 | ||||||||||||
| International Equity Value | 2,866,282 | 306,930 | 164,410 | 142,520 | ||||||||||||
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| Aggregate | Aggregate | Net | ||||||||||||||
| Gross | Gross | Unrealized | ||||||||||||||
| Aggregate | Unrealized | Unrealized | Appreciation | |||||||||||||
| Portfolio | Cost | Appreciation | Depreciation | (Depreciation) | ||||||||||||
| International Quality Growth | $ | 59,347,043 | $ | 6,016,828 | $ | 2,547,580 | $ | 3,469,248 | ||||||||
| International Small Cap Equity | 22,448,833 | 5,059,506 | 1,019,574 | 4,039,932 | ||||||||||||
| International Strategic Equity | 4,912,984,100 | 1,537,011,571 | 162,516,836 | 1,374,494,735 | ||||||||||||
| Managed Equity Volatility | 28,593,318 | 3,752,396 | 754,692 | 2,997,704 | ||||||||||||
| US Equity Concentrated | 1,275,081,080 | 707,145,217 | 996,719 | 706,148,498 | ||||||||||||
| US Equity Focus | 50,711,038 | 29,939,034 | 310,962 | 29,628,072 | ||||||||||||
| US Small-Mid Cap Equity | 81,467,169 | 26,192,597 | 4,162,728 | 22,029,869 | ||||||||||||
| US Sustainable Equity | 10,572,220 | 4,857,047 | 26,221 | 4,830,826 | ||||||||||||
| US Systematic Small Cap Equity Portfolio | 4,120,385 | 237,575 | 175,559 | 62,016 | ||||||||||||
Management has analyzed the Portfolios’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. Each Portfolio files a US federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
(e) Dividends and Distributions—For each Portfolio, income dividends are normally declared each business day and paid monthly during any particular year, except that the Global Listed Infrastructure Portfolio’s dividends from net investment income (if any), will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders, but may be distributed more frequently. Differences in per share
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distributions, by class, are generally due to differences in class specific expenses.
The Global Strategic Equity, US Equity Concentrated, International Equity, International Small Cap Equity, US Small-Mid Cap Equity, Emerging Markets Equity Advantage, and Equity Franchise Portfolios, intend, on their 2021 tax returns, to elect to treat as a distribution of investment company taxable income and net capital gain the portion of redemption proceeds paid to redeeming shareholders that represents the redeeming shareholders’ portion of the Portfolios’ undistributed investment company taxable income and net capital gain. This practice, which involves the use of equalization accounting, will have the effect of reducing the amount of income and gains that the Portfolios would otherwise be required to distribute as dividends to shareholders in order for the Portfolios to avoid federal income and excise taxes. This practice reduces the amount of distributions required to be made to non-redeeming shareholders and defers the recognition of taxable income by such shareholders. However, since the amount of any undistributed income will be reflected in the value of the Portfolios’ shares, the total return on a shareholder’s investment is not affected by the Portfolios’ use of equalization.
Real estate investment trust (“REIT”) distributions received by a Portfolio are generally comprised of ordinary income, long-term capital gains and a return of REIT capital. However, as the actual character of such distributions received are not known until after the calendar year end, distributions made by a Portfolio during the year are subject to re-characterization that may result in some portion of the distributions being reclassified as a return of capital distribution to Portfolio shareholders.
Income and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency translations, wash sales, passive foreign investment companies, expiring capital loss carryovers, certain expenses, foreign capital gains taxes, non-deductible organization expenses, REIT basis adjustments, distributions in
286 Annual Report
excess of current earnings, equalization accounting (as described above), non-REIT non-taxable dividend adjustment to income, distributions redesignations, adjustments in relation to merger, return of capital distributions, receivable from tax reclaim and distributions from real estate investment trusts and partnerships.
The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:
| Distributable | ||||||||
| Earnings | ||||||||
| Paid in | (Accumulated | |||||||
| Portfolio | Capital | Loss) | ||||||
| Developing Markets Equity | $ | (39,615 | ) | $ | 39,615 | |||
| Emerging Markets Core Equity | (1 | ) | 1 | |||||
| Emerging Markets Equity Advantage | 208,964 | (208,964 | ) | |||||
| Emerging Markets Equity | (425,749 | ) | 425,749 | |||||
| Emerging Markets Strategic Equity | (145,577 | ) | 145,577 | |||||
| Equity Franchise | 694,375 | (694,375 | ) | |||||
| Global Equity Select | (13,702 | ) | 13,702 | |||||
| Global Strategic Equity | 41,173 | (41,173 | ) | |||||
| International Equity Advantage | (1 | ) | 1 | |||||
| International Equity | 85,544,358 | (85,544,358 | ) | |||||
| International Quality Growth | (1 | ) | 1 | |||||
| International Strategic Equity | (112,067,056 | ) | 112,067,056 | |||||
| Managed Equity Volatility | (3 | ) | 3 | |||||
| US Equity Concentrated | 29,043,910 | (29,043,910 | ) | |||||
| US Small-Mid Cap Equity | 934,031 | (934,031 | ) | |||||
| US Sustainable Equity | 1 | (1 | ) | |||||
| US Systematic Small Cap Equity Portfolio | (48 | ) | 48 | |||||
The tax character of dividends and distributions paid during the years ended December 31, were as follows:
| Ordinary Income | Long-Term Capital Gain | |||||||||||||||
| Portfolio | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Developing Markets Equity | $ | 1,586,770 | $ | 524,233 | $ | — | $ | — | ||||||||
| Emerging Markets Core Equity | 1,222,973 | 1,259,054 | — | — | ||||||||||||
| Emerging Markets Equity Advantage | 3,005,745 | 191,129 | 2,228,891 | 65,751 | ||||||||||||
| Emerging Markets Equity | 177,125,297 | 101,450,892 | — | — | ||||||||||||
| Emerging Markets Strategic Equity | 751,314 | 941,700 | — | — | ||||||||||||
| Equity Franchise | 9,587,732 | 1,013,518 | 4,681,017 | — | ||||||||||||
| Global Equity Select | 2,605,796 | 898,618 | 1,756,391 | 2,179,767 | ||||||||||||
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| Ordinary Income | Long-Term Capital Gain | |||||||||||||||
| Portfolio | 2021 | 2020 | 2021 | 2020 | ||||||||||||
| Global Listed Infrastructure* | $ | 352,046,276 | $ | 20,285,474 | $ | 110,703,716 | $ | 133,696,404 | ||||||||
| Global Strategic Equity | 311,725 | 24,300 | 420,195 | 104,380 | ||||||||||||
| International Equity Advantage | 72,246 | 50,031 | 70,196 | — | ||||||||||||
| International Equity | 97,589,556 | 31,285,550 | 189,542,780 | — | ||||||||||||
| International Equity Select | 2,266,536 | 918,247 | 472,510 | — | ||||||||||||
| International Equity Value | 136,862 | 58,795 | — | — | ||||||||||||
| International Quality Growth | 525,975 | 5,697 | 730,780 | 81,523 | ||||||||||||
| International Small Cap Equity | 1,373,820 | 1,004,081 | 6,374,470 | — | ||||||||||||
| International Strategic Equity* | 225,230,543 | 58,381,073 | 184,778,429 | — | ||||||||||||
| Managed Equity Volatility | 1,074,482 | 190,666 | 829,157 | 373,644 | ||||||||||||
| US Equity Concentrated | 25,162,588 | 11,158,479 | 242,748,971 | 20,817,948 | ||||||||||||
| US Equity Focus | 2,212,803 | 450,250 | 2,231,806 | 2,166,659 | ||||||||||||
| US Small-Mid Cap Equity | 897,074 | 170,438 | 13,969,807 | 602,919 | ||||||||||||
| US Sustainable Equity | 270,923 | 63,342 | 38,853 | 24 | ||||||||||||
| US Systematic Small Cap Equity | 8,515 | — | — | — | ||||||||||||
| * | Global Listed Infrastructure and International Strategic Equity Portfolios had return of capital distributions of $0 and $112,026,425 in 2021 and $35,977,763 and $0 in 2020, respectively. |
At December 31, 2021, the components of distributable earnings (accumulated loss), on a tax basis, were as follows:
| Undistributed | Undistributed | Net Unrealized | ||||||||||
| Ordinary Income | Long-Term | Appreciation | ||||||||||
| (Deferred | Capital Gain | (Depreciation) | ||||||||||
| Ordinary | (Deferred | Including | ||||||||||
| Portfolio | Losses) | Capital Losses) | Foreign Currency | |||||||||
| Developing Markets Equity | $ | (126,847 | ) | $ | (112,558,706 | ) | $ | 35,575,464 | ||||
| Emerging Markets Core Equity | 27,835 | (16,157,226 | ) | 37,002,738 | ||||||||
| Emerging Markets Equity Advantage | — | 274,665 | (561,987 | ) | ||||||||
| Emerging Markets Equity | (356,726 | ) | (996,421,547 | ) | 492,439,728 | |||||||
| Emerging Markets Strategic Equity | (13,726 | ) | (44,659,696 | ) | 1,546,681 | |||||||
| Equity Franchise | 1,716,651 | 1,342,416 | 13,653,429 | |||||||||
| Global Equity Select | (1,312 | ) | (3,363 | ) | 41,093,414 | |||||||
| Global Listed Infrastructure | 78,621,183 | 68,322,063 | 899,209,535 | |||||||||
| Global Strategic Equity | 101 | 19,473 | 2,353,905 | |||||||||
| International Equity Advantage | 5,581 | 12,710 | 333,307 | |||||||||
| International Equity | 2,207,587 | 48,291,586 | 336,702,749 | |||||||||
| International Equity Select | — | 247,167 | 12,676,411 | |||||||||
| International Equity Value | 1,256 | (600,038 | ) | 97,524 | ||||||||
| International Quality Growth | (6,730 | ) | — | 3,416,928 | ||||||||
| International Small Cap Equity | (19,273 | ) | 826,115 | 4,040,130 | ||||||||
| International Strategic Equity | (7,408,056 | ) | (14,948,987 | ) | 1,372,835,831 | |||||||
288 Annual Report
| Undistributed | Undistributed | Net Unrealized | ||||||||||
| Ordinary Income | Long-Term | Appreciation | ||||||||||
| (Deferred | Capital Gain | (Depreciation) | ||||||||||
| Ordinary | (Deferred | Including | ||||||||||
| Portfolio | Losses) | Capital Losses) | Foreign Currency | |||||||||
| Managed Equity Volatility | $ | 136,234 | $ | 229,615 | $ | 2,998,542 | ||||||
| US Equity Concentrated | 3,855,923 | 26,197,508 | 706,148,498 | |||||||||
| US Equity Focus | — | 340,837 | 29,628,072 | |||||||||
| US Small-Mid Cap Equity | — | 2,348,535 | 22,029,869 | |||||||||
| US Sustainable Equity | 673 | 67,838 | 4,807,477 | |||||||||
| US Systematic Small Cap Equity | 11,115 | 352 | 62,016 | |||||||||
(f) Offering and Organizational Costs—Costs incurred by the Fund in connection with the offering of shares of a new Portfolio or share class of a Portfolio are deferred and amortized on a straight line basis over a twelve-month period from the date of commencement of operations of the Portfolio or share class. Organizational costs are expensed as incurred.
(g) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., and Lazard Global Total Return and Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Open Shares. Each Portfolio’s income, expenses (other than class specific expenses) and realized and unrealized gains and losses are allocated proportionally each day between the classes based upon the relative net assets of each class.
(h) Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates.
Annual Report 289
(i) Net Asset Value—The NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. The NAV per share of a class is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.
3. Investment Management, Administration, Custody, Distribution and Transfer Agency Agreements
The Fund, on behalf of the Portfolios, has entered into a management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager manages the investment operations of each Portfolio and the assets of each Portfolio including the purchase, retention and disposition thereof, in accordance with the Portfolio’s investment objectives, policies, and restrictions, and provides the Portfolios with administrative, operational and compliance assistance services. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:
| Portfolio | Annual Rate | |||||
| Developing Markets Equity | 1.00 | % | ||||
| Emerging Markets Core Equity | 1.00 | |||||
| Emerging Markets Equity Advantage (a) | 0.75 | |||||
| Emerging Markets Equity | 1.00 | |||||
| Emerging Markets Strategic Equity | 1.00 | |||||
| Equity Franchise | 0.80 | |||||
| Global Equity Select | 0.65 | |||||
| Global Listed Infrastructure | 0.90 | |||||
| Global Strategic Equity | 0.75 | |||||
| International Equity Advantage | 0.65 | |||||
| International Equity | 0.75 | |||||
| International Equity Select | 0.65 | |||||
| International Equity Value | 0.80 | |||||
| International Quality Growth | 0.75 | |||||
| International Small Cap Equity | 0.75 | |||||
| International Strategic Equity | 0.75 | |||||
290 Annual Report
| Portfolio | Annual Rate | |||||
| Managed Equity Volatility | 0.60 | % | ||||
| US Equity Concentrated | 0.70 | |||||
| US Equity Focus | 0.55 | |||||
| US Small-Mid Cap Equity | 0.75 | |||||
| US Sustainable Equity | 0.60 | |||||
| US Systematic Small Cap Equity | 0.70 | |||||
| (a) | From January 1, 2021 to March 31, 2021, the annual rate was 0.85%. |
The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse a Portfolio until April 30, 2022 (or such other date as indicated below) if the aggregate direct expenses of the Portfolio, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” (as defined in Form N-1A), fees and expenses related to filing foreign tax reclaims and extraordinary expenses, exceed an applicable percentage of the value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name in the table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expenses.
| Institutional | Open | R6 | ||||||||||
| Portfolio | Shares | Shares | Shares | |||||||||
| Developing Markets Equity | 1.15 | % | 1.40 | % | N/A | % | ||||||
| Emerging Markets Core Equity | 1.25 | 1.50 | 1.20 | |||||||||
| Emerging Markets Equity Advantage (a) | 0.90 | 1.15 | N/A | |||||||||
| Emerging Markets Equity | 1.20 | 1.45 | 1.15 | |||||||||
| Emerging Markets Strategic Equity (b) | 1.15 | 1.40 | N/A | |||||||||
| Equity Franchise | 0.95 | 1.20 | N/A | |||||||||
| Global Equity Select | 0.90 | 1.15 | N/A | |||||||||
| Global Listed Infrastructure (c) | 1.20 | 1.45 | N/A | |||||||||
| Global Strategic Equity | 0.95 | 1.20 | N/A | |||||||||
| International Equity Advantage | 0.90 | 1.15 | N/A | |||||||||
| International Equity | 0.85 | 1.10 | 0.80 | |||||||||
| International Equity Select (d) | 0.90 | 1.15 | N/A | |||||||||
| International Equity Value | 0.95 | 1.20 | N/A | |||||||||
| International Quality Growth (h) | 0.85 | 1.10 | N/A | |||||||||
| International Small Cap Equity | 1.13 | 1.38 | N/A | |||||||||
| International Strategic Equity | 1.05 | 1.30 | 1.00 | |||||||||
| Managed Equity Volatility | 0.75 | 1.00 | N/A | |||||||||
| US Equity Concentrated (e) | 0.90 | 1.15 | 0.85 | |||||||||
| US Equity Focus | 0.70 | 0.95 | 0.70 | |||||||||
| US Small-Mid Cap Equity | 1.15 | 1.40 | 1.10 | |||||||||
| US Sustainable Equity (f) | 0.75 | 1.00 | N/A | |||||||||
| US Systematic Small Cap Equity (g) | 0.90 | 1.15 | N/A | |||||||||
Annual Report 291
| (a) | From January 1, 2021 to March 31, 2021, annual rates were 1.10% and 1.35%, respectively. |
| (b) | From January 1, 2021 to June 23, 2021, annual rates were 1.20%, 1.45% and 1.15%, respectively. |
| (c) | This agreement will continue in effect until April 30, 2031. |
| (d) | This agreement will continue in effect until April 30, 2022 and from April 30, 2022 until April 30, 2031 at levels of 1.15%, 1.40% and 1.10%, respectively. |
| (e) | This agreement will continue in effect until April 30, 2022 and from April 30, 2022 until April 30, 2031 at levels of 1.10%, 1.35% and 1.05%, respectively. |
| (f) | This agreement will continue in effect until June 30, 2022. |
| (g) | This agreement will continue in effect until October 29, 2023. |
| (h) | This agreement will continue in effect until April 30, 2022 for Institutional Shares and until April 30, 2031 for Open Shares. |
In addition, until April 30, 2022, to the extent the “Total Annual Fund Operating Expenses” (as used in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Fund Operating Expenses of the Portfolio’s Institutional Shares (in each case, not including management fees, custodial fees or other expenses related to the management of the Portfolio’s assets), the Investment Manager will bear the expenses of the R6 Shares in the amount of such excess.
During the year ended December 31, 2021, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:
| Institutional Shares | Open Shares | ||||||||||||||||
| Management | Expenses | Management | Expenses | ||||||||||||||
| Portfolio | Fees Waived | Reimbursed | Fees Waived | Reimbursed | |||||||||||||
| Developing Markets Equity | $ | — | $ | — | $ | 4,606 | $ | — | |||||||||
| Emerging Markets Core Equity | — | — | 1,194 | — | |||||||||||||
| Emerging Markets Equity Advantage | 167,193 | — | 7,281 | — | |||||||||||||
| Emerging Markets Strategic Equity | 104,219 | — | 9,771 | — | |||||||||||||
| Equity Franchise | 30,657 | — | 1,062 | 3,259 | |||||||||||||
| Global Equity Select | — | — | 3,473 | — | |||||||||||||
| Global Strategic Equity | 103,154 | 24,871 | 1,587 | 4,519 | |||||||||||||
| International Equity Advantage | 17,790 | 116,562 | 850 | 9,919 | |||||||||||||
| International Equity Select | — | — | 3,382 | — | |||||||||||||
| International Equity Value | 24,087 | 96,627 | 355 | 5,676 | |||||||||||||
| International Quality Growth | 123,150 | — | 2,527 | 3,052 | |||||||||||||
| International Small Cap Equity | 27,985 | — | 17,856 | — | |||||||||||||
| Managed Equity Volatility | 125,256 | — | 485 | 4,240 | |||||||||||||
| US Equity Focus | 23,504 | — | 3,915 | — | |||||||||||||
| US Sustainable Equity | 78,821 | 95,355 | 2,441 | 6,319 | |||||||||||||
| US Systematic Small Cap Equity | 4,222 | 57,195 | 135 | 3,315 | |||||||||||||
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| R6 Shares | |||||||||
| Management | Expenses | ||||||||
| Portfolio | Fees Waived | Reimbursed | |||||||
| Emerging Markets Core Equity | $ | 3,993 | $ | — | |||||
| Emerging Markets Equity | 3,185 | — | |||||||
| International Equity | 16,669 | — | |||||||
| International Strategic Equity | 4,745 | — | |||||||
| US Equity Concentrated | 2,912 | — | |||||||
| US Equity Focus | 19,380 | — | |||||||
| US Small-Mid Cap Equity | 5,923 | 6,663 | |||||||
The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.
State Street serves as the Fund’s custodian and provides the Fund with certain administrative services.
The Fund has a distribution agreement with Lazard Asset Management Securities LLC (the “Distributor”), a wholly-owned subsidiary of the Investment Manager, to serve as the distributor for shares of each Portfolio. The Distributor bears, amongst other expenses, the cost of preparing and distributing materials used by the Distributor in connection with its offering Portfolio shares and other advertising and promotional expenses.
Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net assets of its Open Shares, for certain distribution activities and providing services to holders of the Portfolio’s Open Shares. The Distributor may make payments to third parties such as financial institutions, securities dealers and other industry professionals in respect of these services.
DST is the Fund’s transfer agent and dividend disbursing agent.
4. Directors’ Compensation
Certain Directors of the Fund are officers of the Investment Manager. For 2021, the annual compensation for, each Director who was not an affiliated person of the Investment Manager or any of its affiliates, that was paid by all of the funds in the Lazard
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Fund Complex was, as applicable: (1) an annual retainer of $237,000, (2) an additional annual fee of $33,700 to the lead Independent Director, and (3) an additional annual fee of $23,500 to the Audit Committee Chair. Effective January 2022, the annual compensation for each Director who is not an affiliated person of the Investment Manager or any of its affiliates is comprised of: (1) an annual retainer of $245,000, (2) an additional annual fee of $35,000 to the lead Independent Director, and (3) an additional annual fee of $25,000 to the Audit Committee Chair. The Independent Directors (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund) also may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors are also reimbursed for travel and other out-of-pocket expenses for attending Board and Committee meetings. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees and expenses are allocated among the active Portfolios in the Lazard Fund Complex at a rate of $5,000 per active portfolio with the remainder allocated among the active portfolios on the basis of relative net assets. The Statements of Operations show the Independent Directors’ fees and expenses paid by each Portfolio.
5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2021 were as follows:
| Portfolio | Purchases | Sales | ||||||
| Developing Markets Equity | $ | 74,973,701 | $ | 100,355,871 | ||||
| Emerging Markets Core Equity | 58,642,974 | 92,483,471 | ||||||
| Emerging Markets Equity Advantage | 95,473,242 | 52,904,857 | ||||||
| Emerging Markets Equity | 1,374,400,510 | 2,237,853,926 | ||||||
| Emerging Markets Strategic Equity | 65,752,374 | 78,725,231 | ||||||
| Equity Franchise | 69,903,107 | 77,137,830 | ||||||
| Global Equity Select | 22,767,672 | 22,616,780 | ||||||
| Global Listed Infrastructure | 1,974,090,962 | 2,319,718,097 | ||||||
| Global Strategic Equity | 16,936,203 | 5,294,139 | ||||||
| International Equity Advantage | 2,910,468 | 2,812,403 | ||||||
| International Equity | 826,558,529 | 2,241,292,439 | ||||||
| International Equity Select | 29,898,227 | 45,820,526 | ||||||
| International Equity Value | 2,258,762 | 2,115,988 | ||||||
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| Portfolio | Purchases | Sales | ||||||
| International Quality Growth | $ | 51,608,990 | $ | 2,290,461 | ||||
| International Small Cap Equity | 16,246,778 | 35,127,305 | ||||||
| International Strategic Equity | 2,022,854,531 | 1,900,888,695 | ||||||
| Managed Equity Volatility | 31,654,324 | 30,194,170 | ||||||
| US Equity Concentrated | 607,246,705 | 1,007,524,654 | ||||||
| US Equity Focus | 28,732,453 | 18,628,649 | ||||||
| US Small-Mid Cap Equity | 71,516,102 | 90,091,129 | ||||||
| US Sustainable Equity | 1,326,908 | 1,077,303 | ||||||
| US Systematic Small Cap Equity | 4,756,569 | 778,312 | ||||||
For the year ended December 31, 2021, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.
At December 31, 2021, the Investment Manager owned 19.00%, 91.00%, 86.20%, 32.4%, 51.6% and 75.20% of the outstanding shares of the Global Strategic Equity, International Equity Advantage, International Equity Value, International Quality Growth, and US Sustainable Equity and US Systematic Small Cap Equity Portfolio, respectively.
Holdings of 5% Voting Securities of Portfolio Companies
The 1940 Act defines “affiliated persons” to include a portfolio company in which a Portfolio owns 5% or more of the outstanding voting securities. Investments in “affiliated persons” for the Global Listed Infrastructure Portfolio for the year ended December 31, 2021 were as follows:
| Value at | Purchase | Sales | Realized | |||||||||||||
| Issue | December 31, 2020 | cost | proceeds | gain (loss) | ||||||||||||
| Global Listed Infrastructure | ||||||||||||||||
| Atlas Arteria Ltd | $ | 245,363,263 | $ | 4,645,171 | $ | (1,457,799 | ) | $ | (267,548 | ) | ||||||
| Eutelsat# Communications SA | 129,664,643 | 2,974,011 | (292,855 | ) | 24,856 | |||||||||||
| SES SA | 194,564,135 | 2,412,030 | (2,139,832 | ) | (401,289 | ) | ||||||||||
| Pennon Group Plc* | 279,091,668 | 4,286,530 | (178,634,100 | ) | (18,212,983 | ) | ||||||||||
| Total Securities | $ | 848,683,709 | $ | 14,317,742 | $ | (182,524,586 | ) | $ | (18,856,964 | ) | ||||||
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| Change in unrealized | Shares at | Values at | ||||||||||||||
| appreciation | Dividend | December 31, | December 31, | |||||||||||||
| Issue | (depreciation) | income | 2021 | 2021 | ||||||||||||
| Atlas Arteria Ltd | $ | 1,596,985 | $ | 10,416,584 | 49,611,421 | $ | 249,880,072 | |||||||||
| Eutelsat# Communications SA | 10,562,565 | 12,312,889 | 11,681,887 | 142,933,220 | ||||||||||||
| SES SA | (30,717,014 | ) | 8,421,914 | 20,619,089 | 163,718,030 | |||||||||||
| Pennon Group Plc* | (27,183,696 | ) | 111,758,439 | — | * | — | * | |||||||||
| Total Securities | $ | (45,741,160 | ) | $ | 142,909,826 | 81,912,397 | $ | 556,531,322 | ||||||||
| # | This security is deemed to meet the criteria of an affiliated company at the reporting date. |
| * | This security was deemed to no longer meet the criteria of an affiliated company at the reporting date and is therefore excluded from non-controlled affiliated issuers, at fair value on the Statement of Assets and Liabilities. Dividend income, realized gain/loss, and change in unrealized appreciation (depreciation) earned during the period is reported within the respective non-controlled affiliated issuers financial statement categories on the Statement of Operations. |
6. Line of Credit
The Fund has a $100 million committed line of credit pursuant to an Amended and Restated Loan Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at 1.00% plus the “Applicable Rate,” which is the higher of (a) the Federal Funds Rate plus 10 basis points and (b) the Overnight Bank Funding Rate (OBFR) plus 10 basis points, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the year ended December 31, 2021, the following Portfolios had borrowings under the Agreement as follows:
| Weighted | Number | ||||||||||||||||
| Average | Maximum | Average | of Days | ||||||||||||||
| Daily Loan | Daily Loan | Interest | Borrowings | ||||||||||||||
| Portfolio | Balance* | Outstanding | Rate | were Outstanding | |||||||||||||
| Developing Markets Equity | $ | 1,671,931 | $ | 2,495,000 | 1.19 | % | 13 | ||||||||||
| Emerging Markets Core Equity | 1,730,042 | 8,300,000 | 1.19 | 24 | |||||||||||||
| Emerging Markets Equity Advantage | 657,941 | 3,300,000 | 1.18 | 39 | |||||||||||||
| Emerging Markets Equity | 6,839,200 | 12,976,000 | 1.18 | 5 | |||||||||||||
| Emerging Markets Strategic Equity | 1,217,889 | 10,340,000 | 1.20 | 27 | |||||||||||||
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| Weighted | Number | ||||||||||||||||
| Average | Maximum | Average | of Days | ||||||||||||||
| Daily Loan | Daily Loan | Interest | Borrowings | ||||||||||||||
| Portfolio | Balance* | Outstanding | Rate | were Outstanding | |||||||||||||
| Equity Franchise | $ | 301,000 | $ | 301,000 | 1.17 | 1 | |||||||||||
| Global Equity Select | 157,500 | 157,500 | 1.18 | 4 | |||||||||||||
| Global Strategic Equity | 730,000 | 730,000 | 1.19 | 1 | |||||||||||||
| International Equity | 15,725,000 | 26,920,000 | 1.19 | 12 | |||||||||||||
| International Equity Select | 1,736,667 | 4,510,000 | 1.20 | 3 | |||||||||||||
| International Quality Growth | 115,000 | 115,000 | 1.20 | 1 | |||||||||||||
| International Small Cap Equity | 635,285 | 1,223,100 | 1.18 | 13 | |||||||||||||
| Managed Equity Volatility | 506,125 | 916,000 | 1.20 | 8 | |||||||||||||
| US Equity Concentrated | 22,252,914 | 30,970,100 | 1.18 | 7 | |||||||||||||
| US Equity Focus | 265,000 | 265,000 | 1.20 | 1 | |||||||||||||
| * | For days borrowings were outstanding. |
Management believes that the fair value of the liabilities under the Agreement is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with the Applicable Rate. A Portfolio’s outstanding balance under the Agreement, if any, would be categorized as Level 2.
7. Investment Risks
Not all risks described below apply to all Portfolios, or may not apply to the same degree for one or more Portfolios compared to one or more other Portfolios. In addition, not all risks applicable to an investment in a Portfolio are described below. Please see the current summary prospectus for the relevant Portfolio(s) or a current Portfolio prospectus for further information regarding a Portfolio’s investment strategy and related risks.
(a) Market Risk—Portfolio may incur losses due to declines in one or more markets in which it invests. These declines may be the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s). To the extent that such developments impact specific industries, market sectors, countries or geographic regions, a Portfolio’s investments in such industries, market sectors, countries and/or geographic regions can be expected to be particularly affected, especially if such investments are a significant portion of its investment portfolio. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets
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may negatively affect many issuers, which could adversely affect a Portfolio. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers worldwide. As a result, local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions or other events could have a significant negative impact on global economic and market conditions. The coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses taken by many governments or voluntarily imposed by private parties, including closing borders, restricting travel and imposing prolonged quarantines or similar restrictions, as well as the closure of, or operational changes to, many retail and other businesses, has had negative impacts, and in many cases severe negative impacts, on markets worldwide. It is not known how long the effects of such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may be expected to impact a Portfolio and its investments.
(b) Non-US Securities Risk—A Portfolio’s 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.
(c) 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 and less liquid than more developed markets. These market conditions may continue or worsen. Investments in
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these countries may be subject to political, economic, legal, market and currency risks. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.
(d) 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. A Portfolio’s investments denominated in such currencies (particularly currencies of emerging markets countries), as well as any investments in currencies themselves, could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of currencies. Irrespective of any foreign currency exposure hedging, a Portfolio may experience a decline in the value of its portfolio securities, in US dollar terms, due solely to fluctuations in currency exchange rates.
(e) Forward Currency Contracts and Currency Hedging Risk—Forward currency contracts, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since forward currency contracts, like most derivative instruments, have a leverage component that provides investment exposure in excess of the amount invested. Forward currency contracts are subject to the risks of the creditworthiness of and default by the counterparty and consequently may lose all of a portion of their value due solely to the creditworthiness of or default by the counterparty. Forward currency contracts also may be illiquid. Changes in liquidity may result in significant, rapid and unpredictable changes in the value of such contracts. Forward currency contracts are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related currencies. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Forward currency contracts incur costs, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging
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activities. Successful use of forward currency contracts, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to accurately predict movements in currency exchange rates and, for hedging transactions, there may be imperfect correlations between movements in exchange rates that could cause a Portfolio to incur significant losses. Use of forward currency contracts, even if entered into for hedging purposes, may cause a Portfolio to experience losses greater than if the Portfolio had not engaged in such transactions.
(f) Country Risk—Implementation of certain Portfolios’ investment strategies may, during certain periods, result in the investment of a significant portion of such Portfolios’ assets in a particular country, such as China or Japan, and a Portfolio would be expected to be affected by political, regulatory, market, economic and social developments affecting that country.
Specific risks associated with investments in China include exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations (including currency blockage), trading halts, imposition of tariffs, limitations on repatriation and differing legal standards. Certain Portfolios may invest in eligible renminbi-denominated class A shares of equity securities that are listed and traded on certain Chinese stock exchanges (“China A-Shares”) through Hong Kong Stock Connect Program (“Stock Connect”). While Stock Connect is not subject to individual investment quotas, daily and aggregate investment quotas apply to all Stock Connect participants, which may restrict or preclude a Portfolio’s ability to invest in China A-Shares (although the Portfolio would be permitted to sell China A-Shares regardless of the quota balance). Stock Connect is also subject to trading, clearance, settlement and operational risks.
Over the last few decades, Japan’s economic growth rate had remained relatively low compared to that of its Asian neighbors and other major developed economies mainly due to deflation. Japan has few natural resources and limited land area and is reliant on imports for its commodity needs. Fluctuations or shortages in relevant commodity markets could have a negative
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impact on Japan’s economy. The Japanese economy also can be adversely affected by trade tariffs, other protectionist measures, competition from emerging economies, and the economic conditions of its trading partners. Japan has a growing economic relationship with China and other Southeast Asian countries, and economic, political or social instability in those countries could have an adverse effect on Japan’s economy. The Japanese yen has fluctuated widely at times, and any increase in the yen’s value may cause a decline in Japan’s exports.
(g) Sector Risk—Implementation of certain Portfolios’ investment strategies may, during certain periods, result in the investment of a significant portion of such Portfolios’ assets in a particular market sector, and a Portfolio would be expected to be affected by developments in that sector.
(h) Franchise Companies Risk—Changes in the worldwide economy, consumer spending, competition, demographics and consumer preferences, government regulation and economic conditions may adversely affect franchise companies individually or across an industry and may negatively impact a Portfolio to a greater extent than if the Portfolio’s assets were invested more broadly in a number of types of companies.
(i) Infrastructure Companies Risk—Securities and instruments of infrastructure companies, which consist of utilities, pipelines, toll roads, airports, railroads, ports, telecommunications and other infrastructure companies, are more susceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Infrastructure companies also may be affected by or subject to, among other factors, regulation by various
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government authorities, including rate regulation and service interruption due to environmental, operational or other mishaps.
(j) Sustainable Investing Risk—A Portfolio’s performance is dependent upon, among other things, the success of its investment strategy as implemented by the Investment Manager (i.e., the performance of the investments purchased pursuant to the investment strategy). A Portfolio’s investment strategy which focuses on investing in companies that satisfy the criteria for being considered a Sustainable Company (as described in the Prospectus), which may cause the Investment Manager to forgo investments for the Portfolio that the Investment Manager otherwise believes may be attractive but that are not considered to be Sustainable Companies.
(k) Other Equity Securities Risk—Investments in rights and warrants involve certain risks, including the possible lack of a liquid market for resale, price fluctuations and the failure of the price of the underlying security to reach a level at which the right or warrant can be prudently exercised, in which case the right or warrant may expire without being exercised and result in a loss of a Portfolio’s entire investment.
(l) 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.
(m) REIT Risk—REITs are subject to similar risks as an investment in a realty-related company. Consequently, investments in REITs could lead to investment results that may be significantly different from investments in broader securities markets. The risks related to investments in realty-related companies include, but are not limited to: adverse changes in general economic and local market conditions; adverse developments in employment; changes in supply or demand for similar or competing properties; unfavorable
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changes in applicable taxes, governmental regulations and interest rates; operating or development expenses; and lack of available financing. Due to certain special considerations that apply to REITs, investments in REITs may carry additional risks not necessarily present in investments in other securities. REIT securities (including those trading on national exchanges) typically have trading volumes that are less than those of securities of other types of companies, which may affect a Portfolio’s ability to trade or liquidate those securities. An investment in a REIT may be adversely affected if the REIT fails to comply with applicable laws and regulations, including failing to qualify as a REIT under the Code. Failure to qualify with any of these requirements could jeopardize a company’s status as a REIT. A Portfolio generally will have no control over the operations and policies of a REIT, including qualification as a REIT.
(n) ETF Risk—Shares of exchange-traded funds (“ETFs”) may trade at prices that vary from their net asset values, sometimes significantly. The shares of ETFs may trade at prices at, below or above their most recent net asset value. In addition, the performance of an ETF pursuing a passive index-based strategy may diverge from the performance of the index. A Portfolio’s investments in ETFs are subject to the risks of the ETF’s investments, as well as to the general risks of investing in ETFs. A Portfolio investing in ETFs will bear not only the Portfolio’s management fees and operating expenses, but also the Portfolio’s proportional share of the management fees and operating expenses of the ETFs in which the Portfolio invests. Although Section 12 of the 1940 Act limits the amount of a Portfolio’s assets that may be invested in one or more ETFs (subject to certain exceptions). Rule 12d1-4 under the 1940 Act allows a Portfolio to acquire the securities of another investment company, including ETFs, in excess of the limitations imposed by Section 12, subject to certain limitations and conditions.
(o) Non-Diversification Risk—The net asset value of a Portfolio that is classified as “non-diversified” may be more vulnerable to changes in the market value of a single issuer or group of issuers and may be relatively more susceptible to adverse effects from any single corporate, industry, economic, market, political or
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regulatory occurrence than if the Portfolio’s investments consisted of securities issued by a larger number of issuers.
(p) Cybersecurity Risk—The Portfolios and their service providers are susceptible to operational and information security and related risks of cybersecurity incidents. Cybersecurity attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through “hacking” or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data or causing operational disruption. Cybersecurity incidents affecting the Investment Manager, transfer agent or custodian or other service providers such as financial intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, including by impediments to a Portfolio’s investment trading; the inability of Portfolio shareholders to purchase and redeem Portfolio shares; interference with a Portfolio’s ability to calculate its NAV; violations of applicable privacy, data security or other laws; regulatory fines and penalties; reputational damage; reimbursement or other compensation or remediation costs; legal fees; or additional compliance costs. Similar adverse consequences could result from cybersecurity incidents affecting issuers of securities in which a Portfolio invests; counterparties with which a Portfolio engages in transactions; governmental and other regulatory authorities, exchange and other financial market operators; and banks, brokers, dealers, insurance companies and other financial institutions and other parties. There are inherent limitations in any cybersecurity risk management systems or business continuity plans, including the possibility that certain risks have not been identified.
8. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnification provisions. A Portfolio’s maximum exposure under these arrangements is unknown. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
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9. Fair Value Measurements
Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below:
| • | Level 1 – unadjusted quoted prices in active markets for identical assets and liabilities |
| • | Level 2 – other significant observable inputs (including unadjusted quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of assets and liabilities) |
Changes in valuation methodology or input may result in transfers into or out of the current assigned level within the hierarchy.
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.
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The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2021:
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| Developing Markets Equity Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Brazil | $ | 3,022,265 | $ | 2,685,950 | $ | — | $ | 5,708,215 | ||||||||||
| China | 9,494,523 | 31,553,717 | — | 41,048,240 | ||||||||||||||
| Colombia | 3,122,924 | — | — | 3,122,924 | ||||||||||||||
| Hong Kong | — | 1,502,919 | — | 1,502,919 | ||||||||||||||
| Hungary | — | 1,293,497 | — | 1,293,497 | ||||||||||||||
| India | 8,809,466 | 9,280,434 | — | 18,089,900 | ||||||||||||||
| Indonesia | — | 5,713,225 | — | 5,713,225 | ||||||||||||||
| Mexico | 4,382,290 | — | — | 4,382,290 | ||||||||||||||
| Peru | 1,106,076 | — | — | 1,106,076 | ||||||||||||||
| Philippines | — | 3,893,676 | — | 3,893,676 | ||||||||||||||
| Poland | — | 1,170,868 | — | 1,170,868 | ||||||||||||||
| Russia | 1,318,174 | 6,421,428 | — | 7,739,602 | ||||||||||||||
| South Africa | — | 7,365,400 | — | 7,365,400 | ||||||||||||||
| South Korea | — | 20,023,933 | — | 20,023,933 | ||||||||||||||
| Taiwan | 3,669,679 | 21,968,542 | — | 25,638,221 | ||||||||||||||
| United States | — | 2,261,392 | — | 2,261,392 | ||||||||||||||
| Zambia | 3,451,850 | — | — | 3,451,850 | ||||||||||||||
| Short-Term Investments | 4,388,096 | — | — | 4,388,096 | ||||||||||||||
| Total | $ | 42,765,343 | $ | 115,134,981 | $ | — | $ | 157,900,324 | ||||||||||
306 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| Emerging Markets Core Equity Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Argentina | $ | 1,376,716 | $ | — | $ | — | $ | 1,376,716 | ||||||||||
| Austria | — | 2,520,237 | — | 2,520,237 | ||||||||||||||
| Brazil | 766,084 | 6,228,081 | — | 6,994,165 | ||||||||||||||
| Canada | 1,338,797 | — | — | 1,338,797 | ||||||||||||||
| China | 10,724,718 | 32,133,799 | — | 42,858,517 | ||||||||||||||
| Hong Kong | — | 2,309,059 | — | 2,309,059 | ||||||||||||||
| India | 12,809,362 | 12,084,207 | — | 24,893,569 | ||||||||||||||
| Indonesia | 1,884,234 | 1,458,835 | — | 3,343,069 | ||||||||||||||
| Mexico | 7,504,579 | — | — | 7,504,579 | ||||||||||||||
| Philippines | — | 1,531,881 | — | 1,531,881 | ||||||||||||||
| Poland | — | 2,655,858 | — | 2,655,858 | ||||||||||||||
| Russia | 2,027,634 | 6,370,520 | — | 8,398,154 | ||||||||||||||
| South Africa | — | 2,211,416 | — | 2,211,416 | ||||||||||||||
| South Korea | — | 19,175,909 | — | 19,175,909 | ||||||||||||||
| Taiwan | 18,462,777 | 6,822,617 | — | 25,285,394 | ||||||||||||||
| Thailand | — | 1,538,940 | — | 1,538,940 | ||||||||||||||
| United Kingdom | 2,168,490 | — | — | 2,168,490 | ||||||||||||||
| Short-Term Investments | 3,388,723 | — | — | 3,388,723 | ||||||||||||||
| Total | $ | 62,452,114 | $ | 97,041,359 | $ | — | $ | 159,493,473 | ||||||||||
Annual Report 307
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| Emerging Markets Equity Advantage Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Brazil | $ | — | $ | 1,254,292 | $ | — | $ | 1,254,292 | ||||||||||
| China | 4,773,868 | 18,351,075 | — | 23,124,943 | ||||||||||||||
| Colombia | 111,765 | — | — | 111,765 | ||||||||||||||
| Greece | — | 333,390 | — | 333,390 | ||||||||||||||
| Hong Kong | — | 160,464 | — | 160,464 | ||||||||||||||
| Hungary | — | 351,289 | — | 351,289 | ||||||||||||||
| India | 5,587,465 | 1,903,754 | — | 7,491,219 | ||||||||||||||
| Indonesia | 297,205 | 734,351 | — | 1,031,556 | ||||||||||||||
| Malaysia | — | 1,131,930 | — | 1,131,930 | ||||||||||||||
| Mexico | 2,171,123 | — | — | 2,171,123 | ||||||||||||||
| Philippines | — | 368,020 | — | 368,020 | ||||||||||||||
| Poland | — | 477,206 | — | 477,206 | ||||||||||||||
| Russia | 93,412 | 2,224,384 | — | 2,317,796 | ||||||||||||||
| Saudi Arabia | — | 2,261,341 | — | 2,261,341 | ||||||||||||||
| South Africa | — | 1,780,490 | — | 1,780,490 | ||||||||||||||
| South Korea | — | 9,481,803 | — | 9,481,803 | ||||||||||||||
| Taiwan | 117,552 | 10,992,432 | — | 11,109,984 | ||||||||||||||
| Thailand | — | 2,005,850 | — | 2,005,850 | ||||||||||||||
| Turkey | — | 531,657 | — | 531,657 | ||||||||||||||
| United States | — | 136,960 | — | 136,960 | ||||||||||||||
| Preferred Stocks* | ||||||||||||||||||
| Brazil | — | 736,334 | — | 736,334 | ||||||||||||||
| Short-Term Investments | 766,155 | — | — | 766,155 | ||||||||||||||
| Total | $ | 13,918,545 | $ | 55,217,022 | $ | — | $ | 69,135,567 | ||||||||||
308 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| Emerging Markets Equity Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Austria | $ | — | $ | 25,778,819 | $ | — | $ | 25,778,819 | ||||||||||
| Brazil | 108,225,859 | 214,605,562 | — | 322,831,421 | ||||||||||||||
| China | — | 680,357,717 | — | 680,357,717 | ||||||||||||||
| Egypt | — | 51,293,171 | — | 51,293,171 | ||||||||||||||
| Greece | — | 32,243,235 | — | 32,243,235 | ||||||||||||||
| Hong Kong | — | 40,714,304 | — | 40,714,304 | ||||||||||||||
| Hungary | — | 58,481,047 | — | 58,481,047 | ||||||||||||||
| India | — | 230,963,121 | — | 230,963,121 | ||||||||||||||
| Indonesia | 84,528,375 | 103,430,626 | — | 187,959,001 | ||||||||||||||
| Mexico | 178,382,286 | — | — | 178,382,286 | ||||||||||||||
| Portugal | — | 62,232,850 | — | 62,232,850 | ||||||||||||||
| Russia | 50,121,658 | 195,802,372 | — | 245,924,030 | ||||||||||||||
| South Africa | — | 236,390,643 | — | 236,390,643 | ||||||||||||||
| South Korea | — | 510,902,934 | — | 510,902,934 | ||||||||||||||
| Taiwan | — | 378,775,959 | — | 378,775,959 | ||||||||||||||
| Thailand | — | 68,326,856 | — | 68,326,856 | ||||||||||||||
| United Kingdom | — | 58,663,249 | — | 58,663,249 | ||||||||||||||
| Exchange-Traded Funds | 181,460,979 | — | — | 181,460,979 | ||||||||||||||
| Short-Term Investments | 85,902,251 | — | — | 85,902,251 | ||||||||||||||
| Total | $ | 688,621,408 | $ | 2,948,962,465 | $ | — | $ | 3,637,583,873 | ||||||||||
Annual Report 309
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| Emerging Markets Strategic Equity Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Austria | $ | — | $ | 962,557 | $ | — | $ | 962,557 | ||||||||||
| Brazil | 1,391,297 | 1,339,565 | — | 2,730,862 | ||||||||||||||
| China | 5,567,673 | 11,260,083 | — | 16,827,756 | ||||||||||||||
| Egypt | — | 562,483 | — | 562,483 | ||||||||||||||
| France | 502,204 | — | — | 502,204 | ||||||||||||||
| Greece | — | 365,731 | — | 365,731 | ||||||||||||||
| Hong Kong | — | 951,133 | — | 951,133 | ||||||||||||||
| India | — | 7,471,701 | — | 7,471,701 | ||||||||||||||
| Indonesia | 609,022 | 1,308,283 | — | 1,917,305 | ||||||||||||||
| Macau | — | 330,781 | — | 330,781 | ||||||||||||||
| Mexico | 2,522,002 | — | — | 2,522,002 | ||||||||||||||
| Russia | 839,464 | 2,570,030 | — | 3,409,494 | ||||||||||||||
| South Africa | — | 2,744,740 | — | 2,744,740 | ||||||||||||||
| South Korea | — | 7,688,363 | — | 7,688,363 | ||||||||||||||
| Taiwan | — | 8,298,417 | — | 8,298,417 | ||||||||||||||
| Thailand | 574,192 | 26,998 | — | 601,190 | ||||||||||||||
| United Kingdom | — | 919,142 | — | 919,142 | ||||||||||||||
| Preferred Stocks* | ||||||||||||||||||
| Brazil | — | 372,894 | — | 372,894 | ||||||||||||||
| Short-Term Investments | 1,290,001 | — | — | 1,290,001 | ||||||||||||||
| Total | $ | 13,295,855 | $ | 47,172,901 | $ | — | $ | 60,468,756 | ||||||||||
| Equity Franchise Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Belgium | $ | — | $ | 2,141,479 | $ | — | $ | 2,141,479 | ||||||||||
| France | — | 2,272,073 | — | 2,272,073 | ||||||||||||||
| Germany | — | 5,015,341 | — | 5,015,341 | ||||||||||||||
| Italy | — | 6,510,697 | — | 6,510,697 | ||||||||||||||
| Japan | — | 5,281,549 | — | 5,281,549 | ||||||||||||||
| Luxembourg | — | 4,154,358 | — | 4,154,358 | ||||||||||||||
| Spain | — | 3,173,925 | — | 3,173,925 | ||||||||||||||
| United Kingdom | — | 4,208,734 | — | 4,208,734 | ||||||||||||||
| United States | 65,890,031 | — | — | 65,890,031 | ||||||||||||||
| Short-Term Investments | 6,669,043 | — | — | 6,669,043 | ||||||||||||||
| Total | $ | 72,559,074 | $ | 32,758,156 | $ | — | $ | 105,317,230 | ||||||||||
310 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| Global Equity Select Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Brazil | $ | 708,812 | $ | — | $ | — | $ | 708,812 | ||||||||||
| Canada | 6,443,839 | — | — | 6,443,839 | ||||||||||||||
| China | 2,496,480 | 1,385,801 | — | 3,882,281 | ||||||||||||||
| Denmark | — | 1,063,979 | — | 1,063,979 | ||||||||||||||
| France | — | 3,839,639 | — | 3,839,639 | ||||||||||||||
| Germany | — | 2,164,010 | — | 2,164,010 | ||||||||||||||
| Hong Kong | — | 1,096,687 | — | 1,096,687 | ||||||||||||||
| India | 1,377,792 | — | — | 1,377,792 | ||||||||||||||
| Japan | — | 3,829,879 | — | 3,829,879 | ||||||||||||||
| Netherlands | — | 2,870,570 | — | 2,870,570 | ||||||||||||||
| South Korea | — | 795,234 | — | 795,234 | ||||||||||||||
| Spain | — | 911,389 | — | 911,389 | ||||||||||||||
| Sweden | — | 2,563,697 | — | 2,563,697 | ||||||||||||||
| Switzerland | — | 4,843,993 | — | 4,843,993 | ||||||||||||||
| Taiwan | 2,310,072 | — | — | 2,310,072 | ||||||||||||||
| United Kingdom | 1,158,870 | 6,992,005 | — | 8,150,875 | ||||||||||||||
| United States | 63,269,288 | — | — | 63,269,288 | ||||||||||||||
| Short-Term Investments | 960,483 | — | — | 960,483 | ||||||||||||||
| Total | $ | 78,725,636 | $ | 32,356,883 | $ | — | $ | 111,082,519 | ||||||||||
| Global Listed Infrastructure Portfolio | ||||||||||||||||||
| Assets: | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Australia | $ | — | $ | 465,024,107 | $ | — | $ | 465,024,107 | ||||||||||
| Canada | 41,791,315 | — | — | 41,791,315 | ||||||||||||||
| France | — | 514,512,250 | — | 514,512,250 | ||||||||||||||
| Hong Kong | — | 320,322,531 | — | 320,322,531 | ||||||||||||||
| Italy | — | 1,761,711,786 | — | 1,761,711,786 | ||||||||||||||
| Luxembourg | — | 163,718,030 | — | 163,718,030 | ||||||||||||||
| Portugal | — | 61,128,554 | — | 61,128,554 | ||||||||||||||
| Spain | — | 640,570,331 | — | 640,570,331 | ||||||||||||||
| Switzerland | — | 145,690,272 | — | 145,690,272 | ||||||||||||||
| United Kingdom | — | 1,389,677,159 | — | 1,389,677,159 | ||||||||||||||
| United States | 1,492,281,952 | — | — | 1,492,281,952 | ||||||||||||||
| Short-Term Investments | 635,937,413 | — | — | 635,937,413 | ||||||||||||||
| Other Financial Instruments† | ||||||||||||||||||
| Forward Currency Contracts | — | 1,137,925 | — | 1,137,925 | ||||||||||||||
| Total | $ | 2,170,010,680 | $ | 5,463,492,945 | $ | — | $ | 7,633,503,625 | ||||||||||
| Liabilities: | ||||||||||||||||||
| Other Financial Instruments† | ||||||||||||||||||
| Forward Currency Contracts | $ | — | $ | (80,386,242 | ) | $ | — | $ | (80,386,242 | ) | ||||||||
Annual Report 311
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| Global Strategic Equity Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Australia | $ | — | $ | 198,057 | $ | — | $ | 198,057 | ||||||||||
| Brazil | — | 105,173 | — | 105,173 | ||||||||||||||
| Canada | 414,626 | — | — | 414,626 | ||||||||||||||
| China | 182,937 | 187,722 | — | 370,659 | ||||||||||||||
| Denmark | — | 283,482 | — | 283,482 | ||||||||||||||
| France | — | 542,642 | — | 542,642 | ||||||||||||||
| Germany | — | 1,138,159 | — | 1,138,159 | ||||||||||||||
| Hong Kong | — | 211,710 | — | 211,710 | ||||||||||||||
| India | 229,307 | — | — | 229,307 | ||||||||||||||
| Japan | — | 677,598 | — | 677,598 | ||||||||||||||
| Netherlands | — | 745,375 | — | 745,375 | ||||||||||||||
| Portugal | — | 162,388 | — | 162,388 | ||||||||||||||
| South Korea | — | 521,507 | — | 521,507 | ||||||||||||||
| Spain | — | 212,011 | — | 212,011 | ||||||||||||||
| Switzerland | — | 419,340 | — | 419,340 | ||||||||||||||
| Taiwan | — | 376,427 | — | 376,427 | ||||||||||||||
| United Kingdom | — | 1,235,551 | — | 1,235,551 | ||||||||||||||
| United States | 9,861,172 | — | — | 9,861,172 | ||||||||||||||
| Short-Term Investments | 72,523 | — | — | 72,523 | ||||||||||||||
| Total | $ | 10,760,565 | $ | 7,017,142 | $ | — | $ | 17,777,707 | ||||||||||
312 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| International Equity Advantage Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Australia | $ | — | $ | 242,130 | $ | — | $ | 242,130 | ||||||||||
| Austria | — | 3,029 | — | 3,029 | ||||||||||||||
| Belgium | — | 8,851 | — | 8,851 | ||||||||||||||
| China | — | 45,799 | — | 45,799 | ||||||||||||||
| Denmark | — | 126,405 | — | 126,405 | ||||||||||||||
| Finland | 21,552 | 5,388 | — | 26,940 | ||||||||||||||
| France | — | 331,795 | — | 331,795 | ||||||||||||||
| Germany | 4,558 | 306,183 | — | 310,741 | ||||||||||||||
| Hong Kong | — | 41,136 | — | 41,136 | ||||||||||||||
| Israel | 3,151 | 12,287 | — | 15,438 | ||||||||||||||
| Italy | — | 85,654 | — | 85,654 | ||||||||||||||
| Japan | 39,071 | 642,149 | — | 681,220 | ||||||||||||||
| Luxembourg | — | 7,057 | — | 7,057 | ||||||||||||||
| Netherlands | — | 242,045 | — | 242,045 | ||||||||||||||
| New Zealand | — | 2,893 | — | 2,893 | ||||||||||||||
| Russia | — | 18,479 | — | 18,479 | ||||||||||||||
| Singapore | — | 25,085 | — | 25,085 | ||||||||||||||
| South Africa | — | 22,104 | — | 22,104 | ||||||||||||||
| Spain | — | 52,275 | — | 52,275 | ||||||||||||||
| Sweden | — | 76,963 | — | 76,963 | ||||||||||||||
| Switzerland | — | 224,862 | — | 224,862 | ||||||||||||||
| Taiwan | 3,803 | — | — | 3,803 | ||||||||||||||
| United Kingdom | 8,868 | 312,904 | — | 321,772 | ||||||||||||||
| United States | 18,607 | 63,077 | — | 81,684 | ||||||||||||||
| Preferred Stocks* | ||||||||||||||||||
| Germany | — | 2,328 | — | 2,328 | ||||||||||||||
| Short-Term Investments | 17,595 | — | — | 17,595 | ||||||||||||||
| Total | $ | 117,205 | $ | 2,900,878 | $ | — | $ | 3,018,083 | ||||||||||
Annual Report 313
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 |
||||||||||||||
| International Equity Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Canada | $ | 66,394,125 | $ | — | $ | — | $ | 66,394,125 | ||||||||||
| China | 21,553,920 | 61,114,639 | — | 82,668,559 | ||||||||||||||
| Denmark | — | 49,677,911 | — | 49,677,911 | ||||||||||||||
| Finland | — | 40,679,283 | — | 40,679,283 | ||||||||||||||
| France | — | 184,573,886 | — | 184,573,886 | ||||||||||||||
| Germany | — | 159,703,154 | — | 159,703,154 | ||||||||||||||
| India | — | 17,791,795 | — | 17,791,795 | ||||||||||||||
| Ireland | 22,575,635 | — | — | 22,575,635 | ||||||||||||||
| Israel | — | 30,727,128 | — | 30,727,128 | ||||||||||||||
| Italy | — | 29,828,069 | — | 29,828,069 | ||||||||||||||
| Japan | — | 262,090,313 | — | 262,090,313 | ||||||||||||||
| Mexico | 15,154,051 | — | — | 15,154,051 | ||||||||||||||
| Netherlands | — | 114,635,206 | — | 114,635,206 | ||||||||||||||
| Norway | — | 35,994,858 | — | 35,994,858 | ||||||||||||||
| Portugal | — | 16,745,388 | — | 16,745,388 | ||||||||||||||
| Singapore | — | 22,664,634 | — | 22,664,634 | ||||||||||||||
| South Africa | — | 25,048,180 | — | 25,048,180 | ||||||||||||||
| South Korea | — | 34,574,213 | — | 34,574,213 | ||||||||||||||
| Spain | — | 24,710,990 | — | 24,710,990 | ||||||||||||||
| Sweden | — | 24,738,989 | — | 24,738,989 | ||||||||||||||
| Switzerland | — | 67,887,177 | — | 67,887,177 | ||||||||||||||
| United Kingdom | — | 240,234,106 | — | 240,234,106 | ||||||||||||||
| United States | 99,415,737 | 25,611,719 | — | 125,027,456 | ||||||||||||||
| Preferred Stocks* | ||||||||||||||||||
| Germany | — | 23,938,298 | — | 23,938,298 | ||||||||||||||
| Short-Term Investments | 59,248,348 | — | — | 59,248,348 | ||||||||||||||
| Total | $ | 284,341,816 | $ | 1,492,969,936 | $ | — | $ | 1,777,311,752 | ||||||||||
314 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 |
||||||||||||||
| International Equity Select Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Brazil | $ | 816,310 | $ | 1,047,181 | $ | — | $ | 1,863,491 | ||||||||||
| Canada | 1,145,975 | — | — | 1,145,975 | ||||||||||||||
| China | 463,750 | 7,072,609 | — | 7,536,359 | ||||||||||||||
| Denmark | — | 2,260,262 | — | 2,260,262 | ||||||||||||||
| Finland | — | 1,103,762 | — | 1,103,762 | ||||||||||||||
| France | — | 8,617,692 | — | 8,617,692 | ||||||||||||||
| Germany | — | 3,645,488 | — | 3,645,488 | ||||||||||||||
| India | 1,700,555 | 1,252,542 | — | 2,953,097 | ||||||||||||||
| Indonesia | 645,172 | 925,711 | — | 1,570,883 | ||||||||||||||
| Ireland | 816,491 | — | — | 816,491 | ||||||||||||||
| Italy | — | 1,196,283 | — | 1,196,283 | ||||||||||||||
| Japan | — | 6,719,315 | — | 6,719,315 | ||||||||||||||
| Mexico | 1,253,833 | — | — | 1,253,833 | ||||||||||||||
| Netherlands | — | 5,120,358 | — | 5,120,358 | ||||||||||||||
| Norway | — | 1,621,690 | — | 1,621,690 | ||||||||||||||
| Singapore | — | 980,556 | — | 980,556 | ||||||||||||||
| South Africa | — | 1,386,937 | — | 1,386,937 | ||||||||||||||
| South Korea | — | 2,768,248 | — | 2,768,248 | ||||||||||||||
| Spain | — | 969,951 | — | 969,951 | ||||||||||||||
| Sweden | — | 1,220,803 | — | 1,220,803 | ||||||||||||||
| Switzerland | — | 4,104,710 | — | 4,104,710 | ||||||||||||||
| Taiwan | — | 1,771,421 | — | 1,771,421 | ||||||||||||||
| United Kingdom | — | 9,753,308 | — | 9,753,308 | ||||||||||||||
| United States | 5,773,895 | 1,455,056 | — | 7,228,951 | ||||||||||||||
| Preferred Stocks* | ||||||||||||||||||
| Germany | — | 993,270 | — | 993,270 | ||||||||||||||
| Short-Term Investments | 3,963,861 | — | — | 3,963,861 | ||||||||||||||
| Total | $ | 16,579,842 | $ | 65,987,153 | $ | — | $ | 82,566,995 | ||||||||||
Annual Report 315
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| International Equity Value Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Australia | $ | — | $ | 55,817 | $ | — | $ | 55,817 | ||||||||||
| Canada | 81,232 | — | — | 81,232 | ||||||||||||||
| France | — | 718,260 | — | 718,260 | ||||||||||||||
| Germany | 59,996 | 198,423 | — | 258,419 | ||||||||||||||
| Italy | — | 128,985 | — | 128,985 | ||||||||||||||
| Japan | 127,917 | 442,303 | — | 570,220 | ||||||||||||||
| Macau | — | 71,585 | — | 71,585 | ||||||||||||||
| Mexico | 156,129 | — | — | 156,129 | ||||||||||||||
| Netherlands | — | 107,107 | — | 107,107 | ||||||||||||||
| Russia | — | 63,781 | — | 63,781 | ||||||||||||||
| South Korea | 41,446 | 137,864 | — | 179,310 | ||||||||||||||
| Spain | — | 81,357 | — | 81,357 | ||||||||||||||
| United Kingdom | — | 453,240 | — | 453,240 | ||||||||||||||
| United States | — | 83,360 | — | 83,360 | ||||||||||||||
| Total | $ | 466,720 | $ | 2,542,082 | $ | — | $ | 3,008,802 | ||||||||||
| International Quality Growth Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Brazil | $ | 863,899 | $ | — | $ | — | $ | 863,899 | ||||||||||
| Canada | 4,756,016 | — | — | 4,756,016 | ||||||||||||||
| China | 1,178,159 | 1,748,164 | — | 2,926,323 | ||||||||||||||
| Denmark | — | 4,238,518 | — | 4,238,518 | ||||||||||||||
| France | — | 5,396,783 | — | 5,396,783 | ||||||||||||||
| Germany | — | 2,925,877 | — | 2,925,877 | ||||||||||||||
| Hong Kong | — | 1,090,810 | — | 1,090,810 | ||||||||||||||
| India | 1,856,512 | — | — | 1,856,512 | ||||||||||||||
| Israel | 1,140,773 | — | — | 1,140,773 | ||||||||||||||
| Japan | — | 4,126,450 | — | 4,126,450 | ||||||||||||||
| Netherlands | — | 5,974,138 | — | 5,974,138 | ||||||||||||||
| Norway | — | 993,191 | — | 993,191 | ||||||||||||||
| South Africa | — | 1,381,547 | — | 1,381,547 | ||||||||||||||
| South Korea | — | 782,318 | — | 782,318 | ||||||||||||||
| Spain | — | 1,209,385 | — | 1,209,385 | ||||||||||||||
| Sweden | — | 3,277,755 | — | 3,277,755 | ||||||||||||||
| Switzerland | — | 2,586,523 | — | 2,586,523 | ||||||||||||||
| Taiwan | 2,374,799 | — | — | 2,374,799 | ||||||||||||||
| United Kingdom | — | 10,506,889 | — | 10,506,889 | ||||||||||||||
| United States | 3,360,212 | — | — | 3,360,212 | ||||||||||||||
| Short-Term Investments | 1,047,573 | — | — | 1,047,573 | ||||||||||||||
| Total | $ | 16,577,943 | $ | 46,238,348 | $ | — | $ | 62,816,291 | ||||||||||
316 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| International Small Cap Equity Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Australia | $ | — | $ | 1,111,678 | $ | — | $ | 1,111,678 | ||||||||||
| Austria | — | 391,431 | — | 391,431 | ||||||||||||||
| Belgium | — | 502,522 | — | 502,522 | ||||||||||||||
| Canada | 983,299 | — | — | 983,299 | ||||||||||||||
| China | — | 487,622 | — | 487,622 | ||||||||||||||
| Denmark | — | 380,058 | — | 380,058 | ||||||||||||||
| Finland | — | 751,725 | — | 751,725 | ||||||||||||||
| France | — | 335,921 | — | 335,921 | ||||||||||||||
| Germany | — | 3,777,620 | — | 3,777,620 | ||||||||||||||
| Greece | — | 353,756 | — | 353,756 | ||||||||||||||
| Ireland | — | 267,941 | — | 267,941 | ||||||||||||||
| Israel | — | 272,219 | — | 272,219 | ||||||||||||||
| Italy | 550,620 | 1,089,279 | — | 1,639,899 | ||||||||||||||
| Japan | — | 6,231,652 | — | 6,231,652 | ||||||||||||||
| Jersey | — | 524,932 | — | 524,932 | ||||||||||||||
| Netherlands | — | 1,505,189 | — | 1,505,189 | ||||||||||||||
| New Zealand | — | 275,901 | — | 275,901 | ||||||||||||||
| Norway | — | 374,894 | — | 374,894 | ||||||||||||||
| Singapore | — | 221,202 | — | 221,202 | ||||||||||||||
| Spain | — | 683,794 | — | 683,794 | ||||||||||||||
| Sweden | 298,270 | 739,026 | — | 1,037,296 | ||||||||||||||
| United Kingdom | 269,503 | 3,723,531 | — | 3,993,034 | ||||||||||||||
| United States | 280,996 | — | — | 280,996 | ||||||||||||||
| Short-Term Investments | 104,224 | — | — | 104,224 | ||||||||||||||
| Total | $ | 2,486,912 | $ | 24,001,893 | $ | — | $ | 26,488,805 | ||||||||||
Annual Report 317
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| International Strategic Equity Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Australia | $ | — | $ | 113,921,796 | $ | — | $ | 113,921,796 | ||||||||||
| Brazil | — | 31,498,575 | — | 31,498,575 | ||||||||||||||
| Canada | 490,474,166 | — | — | 490,474,166 | ||||||||||||||
| China | 36,040,530 | 305,986,606 | — | 342,027,136 | ||||||||||||||
| Denmark | — | 230,641,710 | — | 230,641,710 | ||||||||||||||
| Finland | — | 111,995,343 | — | 111,995,343 | ||||||||||||||
| France | — | 525,967,873 | — | 525,967,873 | ||||||||||||||
| Germany | — | 405,144,096 | — | 405,144,096 | ||||||||||||||
| India | — | 71,481,224 | — | 71,481,224 | ||||||||||||||
| Ireland | 93,565,742 | — | — | 93,565,742 | ||||||||||||||
| Israel | — | 166,977,960 | — | 166,977,960 | ||||||||||||||
| Italy | — | 90,192,083 | — | 90,192,083 | ||||||||||||||
| Japan | — | 786,229,991 | — | 786,229,991 | ||||||||||||||
| Mexico | 75,273,938 | — | — | 75,273,938 | ||||||||||||||
| Netherlands | — | 243,607,283 | — | 243,607,283 | ||||||||||||||
| South Korea | — | 28,210,322 | — | 28,210,322 | ||||||||||||||
| Spain | — | 276,090,541 | — | 276,090,541 | ||||||||||||||
| Sweden | 39,350,570 | 72,916,951 | — | 112,267,521 | ||||||||||||||
| Switzerland | — | 309,422,590 | — | 309,422,590 | ||||||||||||||
| Taiwan | — | 52,124,048 | — | 52,124,048 | ||||||||||||||
| United Kingdom | — | 945,961,115 | — | 945,961,115 | ||||||||||||||
| United States | 571,857,275 | — | — | 571,857,275 | ||||||||||||||
| Preferred Stocks* | ||||||||||||||||||
| Brazil | — | 31,404,625 | — | 31,404,625 | ||||||||||||||
| Germany | — | 75,577,596 | — | 75,577,596 | ||||||||||||||
| Short-Term Investments | 105,564,286 | — | — | 105,564,286 | ||||||||||||||
| Total | $ | 1,412,126,507 | $ | 4,875,352,328 | $ | — | $ | 6,287,478,835 | ||||||||||
318 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||||
| Managed Equity Volatility Portfolio | ||||||||||||||||||
| Common Stocks* | ||||||||||||||||||
| Australia | $ | — | $ | 683,337 | $ | — | $ | 683,337 | ||||||||||
| Belgium | — | 421,880 | — | 421,880 | ||||||||||||||
| Canada | 1,830,671 | — | — | 1,830,671 | ||||||||||||||
| China | 77,719 | — | — | 77,719 | ||||||||||||||
| Denmark | — | 545,111 | — | 545,111 | ||||||||||||||
| France | — | 435,232 | — | 435,232 | ||||||||||||||
| Israel | — | 152,935 | — | 152,935 | ||||||||||||||
| Japan | — | 3,594,457 | — | 3,594,457 | ||||||||||||||
| Netherlands | — | 536,821 | — | 536,821 | ||||||||||||||
| New Zealand | — | 148,213 | — | 148,213 | ||||||||||||||
| Norway | — | 252,355 | — | 252,355 | ||||||||||||||
| South Africa | — | 65,861 | — | 65,861 | ||||||||||||||
| Spain | — | 24,976 | — | 24,976 | ||||||||||||||
| Sweden | — | 306,825 | — | 306,825 | ||||||||||||||
| Switzerland | — | 1,161,463 | — | 1,161,463 | ||||||||||||||
| United Kingdom | 70,657 | 973,121 | — | 1,043,778 | ||||||||||||||
| United States | 20,106,560 | — | — | 20,106,560 | ||||||||||||||
| Short-Term Investments | 202,828 | — | — | 202,828 | ||||||||||||||
| Total | $ | 22,288,435 | $ | 9,302,587 | $ | — | $ | 31,591,022 | ||||||||||
| US Equity Concentrated Portfolio | ||||||||||||||||||
| Common Stocks* | $ | 1,961,069,374 | $ | — | $ | — | $ | 1,961,069,374 | ||||||||||
| Short-Term Investments | 20,160,204 | — | — | 20,160,204 | ||||||||||||||
| Total | $ | 1,981,229,578 | $ | — | $ | — | $ | 1,981,229,578 | ||||||||||
| US Equity Focus Portfolio | ||||||||||||||||||
| Common Stocks* | $ | 78,633,244 | $ | — | $ | — | $ | 78,633,244 | ||||||||||
| Short-Term Investments | 1,705,866 | — | — | 1,705,866 | ||||||||||||||
| Total | $ | 80,339,110 | $ | — | $ | — | $ | 80,339,110 | ||||||||||
| US Small-Mid Cap Equity Portfolio | ||||||||||||||||||
| Common Stocks* | $ | 103,497,038 | $ | — | $ | — | $ | 103,497,038 | ||||||||||
| US Sustainable Equity Portfolio | ||||||||||||||||||
| Common Stocks* | $ | 15,009,726 | $ | — | $ | — | $ | 15,009,726 | ||||||||||
| Short-Term Investments | 393,320 | — | — | 393,320 | ||||||||||||||
| Total | $ | 15,403,046 | $ | — | $ | — | $ | 15,403,046 | ||||||||||
| US Systematic Small Cap Equity Portfolio | ||||||||||||||||||
| Common Stocks* | $ | 4,052,353 | $ | — | $ | — | $ | 4,052,353 | ||||||||||
| Rights* | — | — | — | — | ||||||||||||||
| Short-Term Investments | 130,048 | — | — | 130,048 | ||||||||||||||
| Total | $ | 4,182,401 | $ | — | $ | — | $ | 4,182,401 | ||||||||||
Annual Report 319
| * | Please refer to Portfolios of Investments and Notes to Portfolios of Investments for portfolio holdings by country and industry. |
| † | Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation). |
Certain equity securities to which footnote (‡) in the Notes to Portfolios of Investments applies are included in Level 2 and were valued based on reference to similar securities that were trading on active markets.
10. Derivative Instruments
The Global Listed Infrastructure Portfolio used derivative instruments, including forward currency contracts.
The Global Listed Infrastructure Portfolio uses forward currency contracts primarily for hedging purposes.
During the year ended December 31, 2021, the approximate average monthly notional exposure for derivative instruments was as follows:
| Forward currency contracts: | |||
| Average amounts purchased | $ | 234,900,000 | # |
| Average amounts sold | $ | 6,003,100,000 |
| # | Represents average monthly notional exposure for the eight months the derivative instrument was open during the period. |
The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2021:
| Assets – Derivative Financial Instruments | Total | |||||
| Forward currency contracts | Unrealized appreciation on forward currency contracts | $ | 1,137,925 | |||
| Liabilities – Derivative Financial Instruments | Total | |||||
| Forward currency contracts | Unrealized depreciation on forward currency contracts | $ | 80,386,242 | |||
The effect of derivative instruments on the Statement of Operations for the period ended December 31, 2021 was:
| Net Realized Gain (Loss) from: | Total | |||
| Forward currency contracts | $ | 325,748,503 | ||
| Net Change in Unrealized Appreciation (Depreciation) on: | Total | |||
| Forward currency contracts | $ | (23,107,715 | ) | |
320 Annual Report
None of the other presented portfolios traded in derivative instruments during the year ended December 31, 2021.
As of December 31, 2021, the Global Listed Infrastructure Portfolio held derivative instruments that are eligible for offset in its Statement of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through a single payment in the event of default on, or termination of, any one contract.
The required information for the affected Portfolio is presented in the below table, as of December 31, 2021:
Global Listed Infrastructure Portfolio
| Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | ||||||||||||
| Forward Currency Contracts | $ | 1,137,925 | $ | — | $ | 1,137,925 | |||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||||
| Standard Chartered Bank | $ | 1,137,925 | $ | (1,137,925 | ) | $ | — | $ | — | |||||||||||
| Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | ||||||||||||
| Forward Currency Contracts | $ | 80,386,242 | $ | — | $ | 80,386,242 | |||||||||
Annual Report 321
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amounts of Derivative Liabilities | ||||||||||||||||
| BNP Paribas SA | $ | 4,207,071 | $ | — | $ | — | $ | 4,207,071 | ||||||||||||
| Canadian Imperial Bank of Commerce | 6,661,037 | — | — | 6,661,037 | ||||||||||||||||
| Citibank NA | 6,901,088 | — | — | 6,901,088 | ||||||||||||||||
| HSBC Bank USA NA | 11,638,682 | — | — | 11,638,682 | ||||||||||||||||
| Morgan Stanley & Co. | 9,066,306 | — | — | 9,066,306 | ||||||||||||||||
| Royal Bank of Canada | 14,336,378 | — | — | 14,336,378 | ||||||||||||||||
| Standard Chartered Bank | 4,052,271 | (1,137,925 | ) | — | 2,914,346 | |||||||||||||||
| State Street Bank and Trust Co. | 19,432,733 | — | — | 19,432,733 | ||||||||||||||||
| The Bank of New York Mellon Corp. | 4,090,676 | — | — | 4,090,676 | ||||||||||||||||
| Total | $ | 80,386,242 | $ | (1,137,925 | ) | $ | — | $ | 79,248,317 | |||||||||||
11. Accounting Pronouncements
On March 12, 2020, the Financial Accounting Standards Board concluded its reference rate reform project with the issuance of Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”). ASU No. 2020-04 provides elective temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank offered reference rates as of the end of 2021. ASU No. 2020-04 is effective for certain reference rate-related contract modifications that have occurred since March 12, 2020 and that will continue to occur, through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU No. 2020-04.
12. Subsequent Events
Management has evaluated subsequent events potentially affecting the Portfolios through the issuance of the financial statements and has determined that there were no subsequent events that required adjustment or disclosure.
322 Annual Report
The Lazard Funds, Inc.
Report of Independent Registered Public Accounting Firm
To the Board of Directors of The Lazard Funds, Inc. and Shareholders of Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Strategic Equity Portfolio (formerly known as Lazard Emerging Markets Equity Blend Portfolio), Lazard Equity Franchise Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Global Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Value Portfolio, Lazard International Quality Growth Portfolio, Lazard International Small Cap Equity Portfolio, Lazard International Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio, Lazard US Equity Concentrated Portfolio, Lazard US Equity Focus Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard US Sustainable Equity Portfolio and Lazard US Systematic Small Cap Equity Portfolio:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Strategic Equity Portfolio, Lazard Equity Franchise Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Global Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Equity Value Portfolio, Lazard International Quality Growth Portfolio, Lazard International Small Cap Equity Portfolio, Lazard International Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio, Lazard US Equity Concentrated Portfolio, Lazard US Equity Focus Portfolio, Lazard US Small-Mid Cap Equity Portfolio, Lazard US Sustainable Equity Portfolio and Lazard US Systematic Small Cap Equity Portfolio, (collectively the “Portfolios”), twenty-two of the portfolios constituting The Lazard Funds, Inc. (the “Fund”), including the portfolios of investments, as of December 31, 2021, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights
Annual Report 323
for each of the five years in the period then ended for the Portfolios except for Lazard Equity Franchise Portfolio, Lazard International Equity Value Portfolio, Lazard International Quality Growth Portfolio, Lazard US Sustainable Equity Portfolio and Lazard US Systematic Small Cap Equity Portfolio where the financial statements and periods audited are included in the table below, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Portfolios as of December 31, 2021, and the results of their operations for the year then ended (or for the period listed in the table below), the changes in their net assets for each of the two years in the period then ended (or for the period listed in the table below), and the financial highlights for each of the five years in the period then ended (or for the period listed in the table below), in conformity with accounting principles generally accepted in the United States of America.
| Portfolio Name | Statements of Operations |
Statements of Changes in Net Assets |
Financial Highlights |
| Lazard Equity Franchise Portfolio | For the year ended December 31, 2021 | For the years ended December 31, 2021 and 2020 | For the years ended December 31, 2021, 2020, 2019, 2018, and the period from September 29, 2017 (commencement of operations) through December 31, 2017 |
| Lazard International Equity Value Portfolio | For the year ended December 31, 2021 | For the years ended December 31, 2021 and 2020 | For the years ended December 31, 2021, 2020, 2019, and the period from October 31, 2018 (commencement of operations) through December 31, 2018 |
| Lazard International Quality Growth Portfolio | For the year ended December 31, 2021 | For the years ended December 31, 2020 and 2021 | For the years ended December 31, 2021, 2020, 2019, and for the period from December 31, 2018 (commencement of operations) through December 31, 2018 |
| Lazard US Sustainable Equity Portfolio | For the year ended December 31, 2021 | For the years ended December 31, 2021 and the period from June 30, 2020 (commencement of operations) through December 31, 2020 | |
| Lazard US Systematic Small Cap Equity Portfolio | For the period from October 29, 2021 (commencement of operations) through December 31, 2021 | ||
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is
324 Annual Report
to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolios’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
New York, New York
February 25, 2022
We have served as the auditor of one or more of the investment companies in the Lazard Fund Complex since 2004.
Annual Report 325
The Lazard Funds, Inc.
Board of Directors and Officers Information (unaudited)
| Name (Year of Birth) Address(1) |
Position(s) with the Fund (Since) and Term(2) |
Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Independent Directors: | ||||
| Franci J. Blassberg (1953) | Director (August 2014) |
Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present) Cornell Law School, Adjunct Professor (2013 – present) The Buchmann Faculty of Law, Tel Aviv University, Visiting Professor (2019) University of California, Berkeley School of Law, Adjunct Professor (Spring 2017) | ||
| Kenneth S. Davidson (1945) | Director (August 1995) |
Davidson Capital Management Corporation, an investment manager, President (1978 – present) | ||
| Nancy A. Eckl (1962) | Director (April 2007) |
College Retirement Equities Fund (eight accounts), Trustee (2007 – present) TIAA-CREF Funds (68 funds) and TIAA-CREF Life Funds (11 funds), Trustee (2007 – present) TIAA Separate Account VA-1, Member of the Management Committee (2007 – present) | ||
| Trevor W. Morrison (1971) | Director (April 2014) |
New York University School of Law, Dean and Eric M. and Laurie B. Roth Professor of Law (2013 – present) | ||
| Richard Reiss, Jr. (1944) | Director (May 1991) |
Georgica Advisors LLC, an investment manager, Chairman (1997 – present) Osprey Technology Acquisition Corp, a special purpose acquisition company, Director (2019 – present) Resource America, Inc., a real estate asset management company, Director (2016 – 2018) |
326 Annual Report
| Name (Year of Birth) Address(1) |
Position(s) with the Fund (Since) and Term(2) |
Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Robert M. Solmson (1947) | Director (September 2004) |
Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, Co-Managing Partner and Managing Director (2008 – present) | ||
| Interested Directors(3): | ||||
| Ashish Bhutani (1960) | Director (July 2005) |
Investment Manager, Chief Executive Officer (2004 – present) Lazard Ltd, Vice Chairman and Director (2010 – present) | ||
| Nathan A. Paul (1973) | Director (October 2017), Chief Executive Officer and President (February 2017) |
Investment Manager, Chief Business Officer (April 2017 – present) and Managing Director (2003 – present) Investment Manager, General Counsel (2002 – April 2017) |
| (1) | The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
| (2) | Each Director serves as a Director for each of the funds in the Lazard Fund Complex comprised of, as of January 31, 2022, 35 active investment portfolios. Each Director serves an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation. |
| (3) | Messrs. Bhutani and Paul are “interested persons” (as defined in the 1940 Act) of the Fund because of their positions with the Investment Manager (“Interested Directors”). |
The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.lazardassetmanagement.com.
Annual Report 327
| Name (Year of Birth) Address(1) |
Position(s) with the Fund (Since) and Term(2) |
Principal Occupation(s) During the Past Five Years | ||
| Officers(3): | ||||
| Mark R. Anderson (1970) | Vice Presideint and Secretary (February 2017) |
Managing Director (since February 2017), General Counsel (since April 2017) and Chief Compliance Officer (since September 2014) of the Investment Manager | ||
| Nargis Hilal (1984) | Chief Compliance Officer (July 2020) |
Director and Counsel of the Investment Manager (since January 2021, previously Senior Vice President) Chief Compliance Officer of KLS Diversified Asset Management LP (March 2016 – August 2017) | ||
| Christopher Snively (1984) | Chief Financial Officer (March 2016) and Treasurer (September 2019) |
Director of the Investment Manager (since January 2021, previously Senior Vice President) | ||
| Shari L. Soloway (1981) | Assistant Secretary (November 2015) |
Head of Legal, North America and Director of the Investment Manager (since January 2020, previously Senior Vice President) | ||
| Jessica A. Falzone (1989) | Assistant Secretary (January 2019) |
Vice President, Legal and Compliance, of the Investment Manager (since March 2018) Associate at Schulte Roth & Zabel LLP (October 2014 – March 2018) | ||
| Christina Kennedy (1990) | Assistant Treasurer (May 2020) |
Vice President of the Investment Manager (since July 2019) Senior Fund Accountant, Gates Capital Management Inc. (July 2016 – July 2019) | ||
| Cesar A. Trelles (1975) | Assistant Treasurer (December 2004) |
Vice President of the Investment Manager |
| (1) | The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
| (2) | Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex. |
| (3) | In addition to Nathan A. Paul, Chief Executive Officer and President (since February 2017, previously Vice President and Secretary), whose information is included in the Interested Directors section above. |
328 Annual Report
The Lazard Funds, Inc. Tax and Other Information (unaudited)
Tax Information
Year Ended December 31, 2021
The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2021:
Of the dividends paid by the Portfolios, the corresponding percentage shown below is qualified dividend income.
| Portfolio | Percentage | |||
| Developing Markets Equity | 100.00 | % | ||
| Emerging Markets Core Equity | 100.00 | |||
| Emerging Markets Equity Advantage | 37.59 | |||
| Emerging Markets Equity | 100.00 | |||
| Emerging Markets Strategic Equity | 100.00 | |||
| Equity Franchise | 21.69 | |||
| Global Equity Select | 73.81 | |||
| Global Listed Infrastructure | 82.53 | |||
| Global Strategic Equity | 100.00 | |||
| International Equity Advantage | 100.00 | |||
| International Equity | 100.00 | |||
| International Equity Select | 100.00 | |||
| International Equity Value | 100.00 | |||
| International Quality Growth | 78.33 | |||
| International Small Cap Equity | 76.71 | |||
| International Strategic Equity | 100.00 | |||
| Managed Equity Volatility | 84.49 | |||
| US Equity Concentrated | 57.58 | |||
| US Equity Focus | 38.18 | |||
| US Small-Mid Cap Equity | 100.00 | |||
| US Sustainable Equity | 66.93 | |||
| US Systematic Small Cap Equity Portfolio | 64.45 |
Annual Report 329
Of the dividends paid by the Portfolios, the corresponding percentage represents the amount of each dividend that qualifies for the dividends received deduction available to corporate shareholders.
| Portfolio | Percentage | |||
| Developing Markets Equity | 0.00 | % | ||
| Emerging Markets Core Equity | 0.89 | |||
| Emerging Markets Equity Advantage | 0.13 | |||
| Emerging Markets Equity | 0.00 | |||
| Emerging Markets Strategic Equity | 0.57 | |||
| Equity Franchise | 8.52 | |||
| Global Equity Select | 22.91 | |||
| Global Listed Infrastructure | 7.57 | |||
| Global Strategic Equity | 15.66 | |||
| International Equity Advantage | 0.00 | |||
| International Equity | 0.00 | |||
| International Equity Select | 0.00 | |||
| International Equity Value | 0.00 | |||
| International Quality Growth | 0.00 | |||
| International Small Cap Equity | 0.00 | |||
| International Strategic Equity | 0.00 | |||
| Managed Equity Volatility | 43.31 | |||
| US Equity Concentrated | 47.25 | |||
| US Equity Focus | 34.53 | |||
| US Small-Mid Cap Equity | 100.00 | |||
| US Sustainable Equity | 59.82 | |||
| US Systematic Small Cap Equity Portfolio | 44.48 | |||
Pursuant to Section 871 of the Code, the Portfolios have no designated qualified short-term gains for purposes of exempting withholding of tax on such distributions to US nonresident shareholders.
330 Annual Report
The Portfolios intend to pass through to shareholders foreign source income and foreign taxes paid, or up to the maximum amount allowable, as a foreign tax credit.
| Portfolio | Foreign Source Income | Foreign Tax Paid/Credit | ||||||
| Developing Markets Equity | $ | 3,285,368 | $ | 745,235 | ||||
| Emerging Markets Core Equity | 3,954,428 | 497,343 | ||||||
| Emerging Markets Equity Advantage | 1,973,795 | 215,088 | ||||||
| Emerging Markets Equity | 183,453,167 | 34,095,898 | ||||||
| Emerging Markets Strategic Equity | 2,066,598 | 524,180 | ||||||
| Equity Franchise | — | — | ||||||
| Global Equity Select | — | — | ||||||
| Global Listed Infrastructure | — | — | ||||||
| Global Strategic Equity Portfolio | — | — | ||||||
| International Equity Advantage Portfolio | 107,360 | 9,190 | ||||||
| International Equity Portfolio | — | — | ||||||
| International Equity Select Portfolio | 3,439,622 | 374,066 | ||||||
| International Equity Value Portfolio | 139,722 | 8,527 | ||||||
| International Quality Growth Portfolio | 464,007 | 51,155 | ||||||
| International Small Cap Equity Portfolio | 940,735 | 74,979 | ||||||
| International Strategic Equity Portfolio | — | — | ||||||
| Managed Equity Volatility Portfolio | — | — | ||||||
| US Equity Concentrated Portfolio | — | — | ||||||
| US Equity Focus Portfolio | — | — | ||||||
| US Small-Mid Cap Equity Portfolio | — | — | ||||||
| US Sustainable Equity | — | — | ||||||
| US Systematic Small Cap Equity Portfolio | — | — | ||||||
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Of the dividends paid by the Portfolios, the corresponding amount represents the long-term capital gains paid to shareholders.
| Portfolio | Long-Term Capital Gains | |||
| Developing Markets Equity | $ | — | ||
| Emerging Markets Core Equity | — | |||
| Emerging Markets Equity Advantage | 2,263,669 | |||
| Emerging Markets Equity | — | |||
| Emerging Markets Strategic Equity | — | |||
| Equity Franchise | 5,375,391 | |||
| Global Equity Select | 1,756,391 | |||
| Global Listed Infrastructure | 110,703,716 | |||
| Global Strategic Equity Portfolio | 420,195 | |||
| International Equity Advantage Portfolio | 70,196 | |||
| International Equity Portfolio | 275,087,138 | |||
| International Equity Select Portfolio | 462,986 | |||
| International Equity Value Portfolio | — | |||
| International Quality Growth Portfolio | 730,780 | |||
| International Small Cap Equity Portfolio | 6,374,470 | |||
| International Strategic Equity Portfolio | 184,778,429 | |||
| Managed Equity Volatility Portfolio | 829,157 | |||
| US Equity Concentrated Portfolio | 242,748,971 | |||
| US Equity Focus Portfolio | 2,231,806 | |||
| US Small-Mid Cap Equity Portfolio | 14,883,096 | |||
| US Sustainable Equity | 38,853 | |||
| US Systematic Small Cap Equity Portfolio | — | |||
332 Annual Report
Proxy Voting
A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the Securities and Exchange Commission (the “SEC”) website at https://www.sec.gov.
The Fund’s proxy voting record for the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SEC’s website at https://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.
Schedule of Portfolio Holdings
The Fund files the complete schedule of each Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.
Board Consideration of Management Agreement
Lazard US Systematic Small Cap Equity Portfolio
At a meeting of the Board held on September 13, 2021, the Board considered the approval of the Management Agreement between the Fund, on behalf of the Lazard US Systematic Small Cap Equity Portfolio (the “Systematic Portfolio”) and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel, who advised the Board on relevant legal standards and met with the Independent Directors in executive sessions separate from representatives of the Investment Manager.
Representatives of the Investment Manager discussed with the Board the Investment Manager’s written materials provided in advance of the meeting. Certain information was provided by reference to information prepared by the Investment Manager in connection with the Board’s consideration of renewal of the Management Agreement between the Fund, on behalf of its existing Portfolios, and the Investment Manager in June 2021.
Annual Report 333
Services Provided
The Investment Manager’s materials addressed, among other matters, the nature, extent and quality of services that the Investment Manager would provide to the Systematic Portfolio, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds complex of 34 active funds comprised approximately $27 billion of the approximately $277 billion of total assets under the management of the Investment Manager and its global affiliates as of June 30, 2021). The Board also had received a presentation at a prior Board meeting on the Investment Manager’s US Systematic Small Cap Equity investment strategy, including the specific strategies that would be employed for the Systematic Portfolio.
The Board considered the various services to be provided by the Investment Manager including the Investment Manager’s research, portfolio management and trading capabilities and oversight of day-to-day operations, including supervision of fund accounting and administration-related services and assistance in meeting legal and regulatory requirements, as well as regular reporting to, and support of, the Board. The Investment Manager’s representatives stated that the Investment Manager believes that the Systematic Portfolio and its shareholders will be able to obtain significant benefits as a result of the resources and support of the Investment Manager’s global research, portfolio management, trading, operations, risk management, technology and legal and compliance infrastructure. The Board also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience; the Fund’s distribution channels and the relationships with various intermediaries; and marketing and shareholder servicing activities on behalf of the Fund’s Portfolios, which would include the Systematic Portfolio.The Board accepted the assertion of representatives of the Investment Manager that the Systematic Portfolio would be expected to benefit from the services and infrastructure provided by the Investment Manager and that such services and infrastructure would be greater than those typically provided to a $27 billion fund complex not managed by a large, global firm such as the Investment Manager.
334 Annual Report
Comparative Fee, Expense Ratio and Performance Information
Strategic Insight Advisory Fee and Expense Ratio Comparisons. The Board reviewed information prepared by Strategic Insight, an independent provider of investment company data, including, among other information, the Systematic Portfolio’s proposed contractual advisory fee (i.e., without giving effect to any fee waivers) and net expense ratio (i.e., after giving effect to the Systematic Portfolio’s expense limitation agreed to by the Investment Manager) compared to those of a group of funds not advised by the Investment Manager selected by Strategic Insight as comparable, for expense comparison purposes, to the Systematic Portfolio in terms of relevant criteria as appropriate, with certain exclusions as specified by Strategic Insight (the “Expense Peer Group”1). The results of the Strategic Insight comparisons showed that the advisory fee and net expense ratio of the Systematic Portfolio were below the medians of the Expense Peer Group.
Other Accounts Advisory Fee Comparison. The Board also considered fees paid to the Investment Manager by one pooled investment vehicle that utilized the same investment strategy as the Systematic Portfolio (the “Systematic Account”). The Board discussed the fee to be paid to the Investment Manager by the Systematic Portfolio compared to the fees paid to the Investment Manager by the Systematic Account. Representatives of the Investment Manager discussed the nature of the Systematic Account and the significant differences in services provided by the Investment Manager to the Systematic Account as compared to the services to be provided to the Systematic Portfolio. The Board considered the relevance of the fee information provided for the Systematic Account, in light of the Investment Manager’s discussion of the significant differences in services provided, to evaluate the fees to be paid to the Investment Manager by the Systematic Portfolio.
| 1 | The Strategic Insight materials outlined the process for constructing the Expense Peer Group. Representatives of the Investment Manager and independent legal counsel had previously discussed with the Board in further detail the methodology used by Strategic Insight in constructing the Expense Peer Group, including how the methodology could affect the results of the comparisons. |
Annual Report 335
Performance. The Board considered the performance of the Systematic Account compared to the Russell 2000 Index for various periods commencing in 2015, which showed that the performance of the Systematic Account (gross of fees) was above the Index in almost all of the periods shown, including in the one-, three- and five-year periods ended June 30, 2021 as well as the since inception (August 1, 2015) period.
Investment Manager Profitability and Economies of Scale
Representatives of the Investment Manager noted that because the Systematic Portfolio is newly formed, has not commenced operations and the eventual aggregate amount of the Systematic Portfolio’s assets was uncertain, specific information concerning the cost of services to be provided to the Systematic Portfolio and the estimated profitability percentage of the Management Agreement with the Fund, on behalf of the Systematic Portfolio, to the Investment Manager and its affiliates from their relationships with the Systematic Portfolio and economies of scale would be subject to a number of assumptions and would be speculative and not meaningful. The Investment Manager representatives stated that they did not expect the Investment Manager to realize any current profits on the Systematic Portfolio initially, noting the Investment Manager’s agreement to waive its fees and/or reimburse expenses of the Systematic Portfolio for at least two years following the Systematic Portfolio’s commencement of operations to maintain the expense ratio reflected in the Strategic Insight materials. The Board determined to revisit this issue no later than when it next reviewed the advisory fee in connection with the renewal of the Management Agreement with the Fund, on behalf of the Systematic Portfolio. Representatives of the Investment Manager reviewed with the Board information provided on the Investment Manager’s brokerage and soft dollar practices. The Investment Manager’s representatives stated that neither the Investment Manager nor its affiliates were expected to receive any significant benefits from the Investment Manager acting as investment manager to the Systematic Portfolio other than the benefit of soft dollar commissions in connection with managing the Systematic
336 Annual Report
Portfolio. The representatives of the Investment Manager stated that the Investment Manager intends to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Systematic Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Systematic Portfolio’s Open Shares.
Conclusions and Determinations
At the conclusion of these discussions, the Board expressed the opinion that it had been furnished with such information as may reasonably be necessary to make an informed business decision with respect to the evaluation of the Management Agreement with the Fund, on behalf of the Systematic Portfolio. Based on its discussions and considerations as described above, with the assistance of independent legal counsel and in the exercise of its business judgment, the Board made the following conclusions and determinations.
| • | The Board concluded that the nature, extent and quality of the services to be provided by the Investment Manager are adequate and appropriate, noting the benefits of the significant services and infrastructure associated with an approximately $277 billion global asset management business. |
| • | The Board concluded that the fee to be paid to the Investment Manager was appropriate under the circumstances and in light of the factors and the totality of the services to be provided as discussed above. |
| • | The Board recognized that economies of scale may be realized, particularly as the assets of the Systematic Portfolio increase |
Annual Report 337
and determined that it would continue to consider potential material economies of scale.
In evaluating the Management Agreement with the Fund, on behalf of the Systematic Portfolio, the Board relied on the information described above as well as other information provided by the Investment Manager. The Board also relied on its previous knowledge, gained through meetings and other interactions with the Investment Manager, of the Investment Manager and the services provided to the Fund by the Investment Manager. The Board considered these conclusions and determinations in their totality and determined to approve the Management Agreement with the Fund, on behalf of the Systematic Portfolio. In deciding whether to vote to approve the Management Agreement with the Fund, on behalf of the Systematic Portfolio, each Director may have accorded different weights to different factors so that each Director may have had a different basis for his or her decision.
338 Annual Report
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The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
www.lazardassetmanagement.com
Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Custodian
State Street Bank and Trust Company
One Iron Street
Boston, Massachusetts 02210-1641
Transfer Agent and Dividend Disbursing Agent
DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169-0953
Telephone: 617-483-7000
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015
Legal Counsel
Proskauer Rose LLP
Eleven Times Square
New York, New York 10036-8299
www.proskauer.com
Annual Report 345
Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com. LZDPS020 |
 |
Lazard Funds
Annual Report
December 31, 2021
Fixed Income Funds
Lazard Emerging Markets Debt Portfolio
Lazard Global Fixed Income Portfolio
Lazard US Corporate Income Portfolio
Lazard US Short Duration Fixed Income Portfolio
The Lazard Funds, Inc. Table of Contents
Please consider a Portfolio’s investment objective, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. (the “Fund”), you may obtain a prospectus or a Portfolio’s summary prospectus by calling 800-823-6300, or online, at www.lazardassetmanagement.com. Read the prospectus or the Portfolio’s summary prospectus carefully before you invest. The prospectus and the Portfolio’s summary prospectus contain the investment objective, risks, charges, expenses and other information about the Portfolio, which are not detailed in this report.
Distributed by Lazard Asset Management Securities LLC.
Annual Report 1
The Lazard Funds, Inc. A Message from Lazard (unaudited)
Dear Shareholder:
The year 2021 proved to be an especially challenging one for global financial markets, as the pandemic entered its second year and new risk factors emerged.
Despite the emergence of several highly effective vaccines in late 2020, anxiety about COVID-19 continued to hang over global financial markets for much of 2021. The uneven nature of the worldwide vaccine rollout, shortages of a wide variety of items, and the emergence of more infectious strains were stark reminders that the virus remained a serious, persistent threat to global public health and the world economy.
Yet, it was the specter of surging global inflation that was also front and center in the minds of investors throughout the year. Traders were concerned that the sharp rise in consumer prices would force monetary policymakers, especially those at the US Federal Reserve (the “Fed”), the world’s most influential central bank, to raise interest rates to contain inflation, potentially hindering a fragile global economic recovery and undercutting a major source of support for riskier assets. Against a backdrop of persistently high inflation and a wave of new COVID-19 cases sweeping across parts of the world, the Fed announced in the closing weeks of December that it would pull back on its massive stimulus program. The news forced markets to prepare to enter 2022 with less Fed support than they have had since the start of the pandemic.
Despite all the challenges and uncertainty, global equity markets generally advanced in 2021, in large part due to solid corporate earnings, especially in the United States and Europe, with data indicating that earnings recoveries were underway for companies in both regions. Global bond markets, including those for sovereign debt and local currency emerging markets, faced headwinds amid the backdrop of rising interest rates and US dollar strength. Among the bright spots were inflation-linked bonds, which were supported by higher inflation expectations, and high yield bonds, which benefited from coupon income and stable or tighter credit spreads.
2 Annual Report
The year 2021 continued a trend of extraordinary shifts in market conditions. However, whatever the investment landscape, we remain confident that fundamental analyses will be crucial drivers of performance going forward. We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities.
Sincerely,
Lazard Asset Management
Annual Report 3
The Lazard Funds, Inc. Investment Overviews (unaudited)
MARKET OVERVIEWS
Global Fixed Income
For the year that ended December 31, 2021, global bond prices, with the exception of high yield, fell, as traders grappled with heightened uncertainty and shifting market dynamics.
Despite the discovery of a vaccine, coronavirus risk lingered and remained a persistent source of anxiety for investors. The emergence of the rapidly spreading, highly infectious Delta and Omicron variants in the second half of the year sparked waves of infections around the world and rattled markets, with traders fearing the imposition of economically punishing lockdowns in order to contain the outbreaks. However, in the case of the Omicron variant, which emerged in late November, these fears eased considerably, as scientific data suggested that this strain was significantly milder and less lethal than the Delta variant and earlier versions of the virus.
The specter of surging global inflation was at the top of mind for investors for much of 2021 amid supply-chain bottlenecks, labor shortages, and sharp increases in shipping costs and oil prices. With consumer prices remaining stubbornly high, the stimulus policy path of the Fed became an area of interest for investors. The announcement by the world’s most influential central bank in the final weeks of the year that it would accelerate the tapering of its bond purchases and likely raise interest rates three times in 2022 received a mixed reaction from financial markets. While traders were heartened by signs that the Fed took the threat of inflation seriously, they also worried that a rapid increase in interest rates could slow global economic growth. Two other key central banks, the Bank of England and the European Central Bank, announced that they, too, were taking a more hawkish turn in order to contain higher prices.
Negative developments in China during the year compounded market anxiety. China’s economic slowdown, regulatory risk stemming from a crackdown on domestic sectors, and the financial woes of the country’s debt-laden real estate sector weighed heavily on the world’s second largest economy.
4 Annual Report
Global rate markets came under pressure as interest rates moved higher and central banks looked to remove the ultra-accommodative policy enacted in response to the pandemic emergency. Interest rate sensitive global investment grade corporate bonds underperformed global high yield securities while investment grade corporate credit spreads remained stable. Emerging market debt came under pressure, especially local currency debt. Nonetheless, the new issue market continued to be robust as issuers continued to bolster balance sheets, refinance, and extend their maturity profiles. The US dollar was strong versus most global currencies in both developed and emerging markets. For example, versus the US dollar, the Japanese yen was among the worst performing currencies, losing 10.3%, and among the few winners, the Chinese renminbi appreciated 2.7%. As the year came to an end, the US yield curve continued to shift higher and steepened on the long end as the prospects for the Fed to raise interest rates and to start shrinking its balance sheet came into focus.
Emerging Markets Debt
Emerging markets debt fell 5.32% in 2021 (measured in US dollar terms), as hard currency debt lost 1.80% and local currency debt declined 8.75%. The negative return in hard currency debt marked only the fourth negative calendar year for the asset class in the last two decades. Sovereign credit spreads peaked at nearly 400 basis points (“bps”) in November but partially retraced and ended the year at 369 bps, around 15 bps wider than the start of 2021. The yield on the JP Morgan GBI EM Global Diversified Index (the “GBI EM Index”) improved significantly and currently stands at 5.29%, around 75 bps higher than at the start of 2021 and close to the highest levels since mid-2019. Local debt’s 8.75% loss was the worst calendar year performance since 2015 and third worst since the inception of the index in 2002. Throughout the year, local currencies were hit by the double impact of rising yields and weaker currencies. Tighter monetary policies helped drive the GBI EM Index yield to 5.72%, more than 150 bps higher than the end of 2020. Despite the increase in nominal yields, emerging markets currencies struggled to find an anchor of stability and fell 6% versus the US dollar.
Annual Report 5
US Fixed Income
The performance of the sub-asset classes of the US bond market diverged in 2021, as traders assessed the impacts of an improving domestic economic outlook, inflationary pressures exerting themselves, and possible changes in the Fed’s stimulus policy path.
US High Yield
US high yield bonds posted positive returns for the year, supported by tighter credit spreads, which offset higher interest rates, and coupon income. As the year concluded, intense scrutiny was given to the Fed’s trajectory for removing the emergency measures that had been in place since the start of the pandemic, the prospect that inflation would persist, and the slowing economy.
The ICE BofAML BB-B US Cash Pay Non-Distressed High Yield® Index (“Cash Pay Index”) finished the year up 4.59%. The option-adjusted spread (“OAS”) continued to tighten and finished 2021 54 bps tighter at 264 bps. Lower-quality credit outperformed higher quality with the ICE BofA CCC & Lower Cash Pay High Yield Index up 10.26%, ICE BofA B Cash Pay High Yield Index gaining 4.83%, and the ICE BofA BB Cash Pay High Yield Index rising 4.51%.
High yield issuances continued to break records, totaling $483.0 billion, which eclipsed the previous yearly high of $449.9 billion set in 2020. Refinancing (60%) was the leading use of proceeds, as companies continued to take advantage of the tight spreads and lower interest rates, followed by acquisition financing (20%), and general corporate purposes (16%).
High yield fund flows were negative, marked by overall outflows of $13.6 billion for the year. However, these outflows were dominated by mutual funds, as exchange traded funds (“ETFs”) actually had a net yearly inflow of $842 million into ETFs according to JPMorgan.
Defaults fell to a total of $4.1 billion in bonds, bringing the US high yield bond default rate to a record low of 0.29%, which is below 2007’s previous record low point of 0.38% per JPMorgan.
6 Annual Report
US Short Duration Fixed Income
At the beginning of the year, it was thought that inflation would be “transitory,” the result of temporary bottlenecks in supply chains that would normalize as the global economy recovered from shutdowns associated with the pandemic. However, the Fed signaled a relatively hawkish shift in monetary policy when Chair Jerome Powell, speaking before Congress in early December, suggested retiring the word “transitory” in reference to inflation and indicated that the Fed was ready to focus on price stability after months of attending mainly to its other goal, maximum employment. Market participants seized on the Fed’s relatively “hawkish pivot,” and moved up their forecasts for the timing and number of rate hikes. Consequently, the short end of the US yield curve came under pressure rates rose, and bond prices generally fell in anticipation of rate hikes and an overall tightening of monetary policy.
PORTFOLIO PERFORMANCE
Lazard Emerging Markets Debt Portfolio
For the year ended December 31, 2021, the Lazard Emerging Markets Debt Portfolio’s Institutional Shares posted a total return of -5.86%, while Open Shares posted a total return of -6.07% and R6 Shares posted a total return of -5.73%, as compared with the -5.32% return for the Global Diversified Index.
Sovereign credit selection was the main detractor from relative performance. Ukrainian government bonds were one of our largest active risk positions. Despite stronger fundamentals and renewed support from the International Monetary Fund, these bonds underperformed due to the conflict with Russia. Small exposure to distressed countries where bonds continued to drop despite a lack of significant developments (e.g. Venezuela and Lebanon) also detracted from performance.
In contrast, in local debt, the Portfolio benefited from an underweight duration to countries with low yields such as Poland and Thailand. The Portfolio’s overweight exposure to South Africa was also beneficial to performance. South Africa was the portfolio’s largest local rates positions throughout the year and was one of
Annual Report 7
the top performers in the index. The Portfolio’s out-of-index position in corporate credit also contributed to relative performance as corporate debt instruments outperformed sovereign debt instruments by nearly 3% during the year.
The Portfolio management team uses currency forwards and interest rates swaps, both opportunistically, for direct currency and rates exposure, and defensively, for hedging purposes. For the year, the use of derivatives detracted from the Portfolio’s performance.
Lazard Global Fixed Income Portfolio
For the year ended December 31, 2021, the Lazard Global Fixed Income Portfolio’s Institutional Shares posted a total return of -7.95%, while Open Shares posted a total return of -8.13%, as compared with the -4.71% return for the Bloomberg Barclays Global Aggregate® Index.
In country allocation, overweight exposure to US, Canada, Australia, New Zealand, Singapore, Latin America, and Eastern European government bonds detracted, as rates normalized to higher levels. In currency positioning, exposures to Japanese yen, Thai baht, Mexican peso, Australian dollar, and Euro proxies helped performance as the US dollar strengthened.
In contrast, underweights to bonds in the Eurozone, United Kingdom, Japan, South Korea, and Russia helped performance as their interest rates rose. Underweights to government securities in favor of corporate securities helped performance due to higher yields and tightening credit spreads. The Portfolio was aided by a tactical overweight position in the Canadian dollar, as Bank of Canada began tightening monetary policy and commodity prices improved.
Lazard US Corporate Income Portfolio
For the year ended December 31, 2021, the Lazard US Corporate Income Portfolio’s Institutional Shares posted a total return of 2.86%, while Open Shares posted a total return of 2.55% and R6 Shares posted a total return of 2.80%, as compared with the 4.59% return for the “Cash Pay Index”.
8 Annual Report
Relative underperformance versus the benchmark index was driven by the Portfolio’s higher credit quality and underweight exposure to the energy sector, which had an outsized return as oil prices rebounded. Additionally, overweight exposure to the media sector and underweight exposure to basic industrials were headwinds to performance. Among negative contributors, Diamond Sports (DSPORT) 5.375% due 2026 suffered from a decrease in subscribers and a condensed sports season due to the pandemic. Bausch Health (BHCNN) 5% due 2029 moved lower after the healthcare company spun off an asset which will leave the existing company with higher debt levels than previously guided.
In contrast, overweight exposure to the consumer goods, leisure, and services sectors buoyed relative performance as the economy re-opened and travel increased. At a security level, Precision Drilling (PDCN) 5.25% due 2024 performed well, as the oil field servicer benefitted from recovery in oil prices. Additionally, Meredith Corporation (MDP) 6.875% due 2026 benefitted after its Local Media Group segment was acquired by Gray Television.
The Portfolio maintains an overweight to BBB credit, and an underweight to BB and B credit as compared to the Cash Pay Index. The Portfolio’s OAS of 233 bps continues to be lower than the Cash Pay Index’s 264 bp OAS. The Portfolio finished the year with an effective yield of 3.43% versus 3.89% for the Cash Pay Index. The Portfolio’s effective duration as of December 31, 2021 of 3.83 years remains below the Cash Pay Index’s 4.06 years.
Lazard US Short Duration Fixed Income Portfolio
For the year ended December 31, 2021, the Lazard US Short Duration Fixed Income Portfolio’s Institutional Shares posted a total return of -0.39%, while Open Shares posted a total return of -0.50%, as compared with the -0.55% return for the ICE BofAML 1-3 Year US Treasury® Index.
Relative performance was helped by an overweight exposure to US corporate credit and consumer asset-backed securities (ABS). Also, an underweight exposure to 2-3 year securities and an overall
Annual Report 9
lower duration than the benchmark helped relative performance as yields moved higher.
Overall, absolute performance was hurt by rising rates as the market adjusted to the prospects of a tighter monetary policy.
The Portfolio continues to maintain a shorter duration relative to the index, as it underweights the 2-3 year part of the curve. We continue to favor yield from US corporate bonds, especially the consumer sector. Consequently, the Portfolio maintains an overweight exposure to US corporates and an underweight exposure to US Treasuries relative to the index.
10 Annual Report
The Lazard Funds, Inc. Performance Overviews (unaudited)
Please see the “Notes to the Performance Overviews” for important information about the calculation of total returns, performance information generally, performance differences between Institutional Shares, Open Shares and R6 Shares, and the indexes shown below.
Lazard Emerging Markets Debt Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Debt Portfolio, the JPMorgan EMBI Global Diversified® Index, the JPMorgan GBI-EM Global Diversified® Index and the Global Diversified Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One Year |
Five Years |
Ten Years |
Since Inception† |
|||
| Institutional Shares | –5.86% | 3.14% | 2.28% | 2.25% | ||
| Open Shares | –6.07% | 2.91% | 2.03% | 1.99% | ||
| R6 Shares | –5.73% | 3.25% | N/A | 2.41% | ||
| JP Morgan EMBI Global Diversified Index | –1.80% | 4.65% | 5.28% | 5.58% (Institutional and Open Shares) 3.92% (R6 Shares) |
||
| JP Morgan GBI-EM Global Diversified Index | –8.75% | 2.82% | 0.74% | 0.53% (Institutional and Open Shares) 1.98% (R6 Shares) |
||
| Global Diversified Index | –5.32% | 3.78% | 3.05% | 3.09% (Institutional and Open Shares) 3.00% (R6 Shares) |
| † | The inception date for the Institutional and Open Shares was February 28, 2011 and for the R6 Shares was July 28, 2016. |
Annual Report 11
Lazard Global Fixed Income Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Fixed Income Portfolio and the Bloomberg Barclays Global Aggregate® Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One Year |
Five Years |
Since Inception |
† | |
| Institutional Shares | –7.95% | 2.69% | 0.88% | |
| Open Shares | –8.13% | 2.43% | 0.59% | |
| Bloomberg Global Aggregate Index | –4.71% | 3.36% | 1.73% |
| † | The inception date for the Portfolio was March 30, 2012. |
12 Annual Report
Lazard US Corporate Income Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Corporate Income Portfolio and Cash Pay Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One Year |
Five Years |
Ten Years |
Since Inception |
† | |
| Institutional Shares | 2.86% | 4.58% | 5.32% | 4.39% | |
| Open Shares | 2.55% | 4.30% | 5.03% | 3.92% | |
| R6 Shares | 2.80% | 4.12% | N/A | 4.26% | |
| Cash Pay Index | 4.59% | 6.08% | 6.56% | 6.42% (Institutional Shares) 6.38% (Open Shares) 6.25% (R6 Shares) |
| † | The inception date for the Institutional Shares was January 2, 1998, for the Open Shares was February 24, 1998 and for the R6 Shares was November 3, 2016. |
Annual Report 13
Lazard US Short Duration Fixed Income Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Short Duration Fixed Income Portfolio and the ICE BofAML 1-3 Year US Treasury® Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One Year |
Five Years |
Since Inception |
† | |
| Institutional Shares | –0.39% | 1.35% | 0.94% | |
| Open Shares | –0.50% | 1.10% | 0.78% | |
| ICE BofAML 1-3 Year US Treasury Index | –0.55% | 1.61% | 1.09% |
| † | The inception date for the Portfolio was February 28, 2011. |
Notes to Performance Overviews:
Information About Portfolio Performance Shown Above
Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of a Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager“), State Street Bank and Trust Company, the Fund’s administrator (“State Street“), or DST Asset Manager Solutions, Inc., the Fund’s transfer agent and dividend disbursing agent (“DST“); without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
Performance results do not include adjustments made for financial reporting purposes in accordance with US Generally Accepted Accounting Principles (“GAAP“), if any, and also exclude one-time adjustments related to the receipt of settlement proceeds by the US Corporate Income Portfolio from a class action lawsuit which impacted the total return of R6 Shares but did not impact that of Institutional or Open; amounts may differ from amounts reported in the financial highlights.
The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of an investment in a Portfolio will fluctuate, so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graphs and tables above do not reflect the deduction of taxes that a shareholder would pay on a Portfolio’s distributions or the redemption of Portfolio shares.
14 Annual Report
The performance of Institutional Shares, Open Shares and R6 Shares, as applicable, may vary, primarily based on the differences in fees borne by shareholders investing in different classes of a Portfolio.
Information About Index Performance Shown Above
The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The indices are unmanaged, have no fees or costs and are not available for investment.
The Bloomberg Global Aggregate Index provides a broad-based measure of global investment-grade fixed-income debt markets, including government related debt, corporate debt, securitized debt and global Treasury.
The JPMorgan Emerging Markets Bond index (“EMBI”) Global Diversified Index is an unmanaged index of debt instruments of emerging countries. The JPMorgan Government Bond Index-Emerging Markets (“GBI-EM”) Global Diversified Index is a comprehensive Emerging Markets index that consists of regularly traded, liquid, fixed-rate, domestic currency government bonds to which international investors can gain exposure. These indices limit the weights of those index countries with larger debt stocks by only including specified portions of these countries' eligible current face amounts of debt outstanding. The same countries are covered in both indices.
The Global Diversified Index is an unmanaged index created by the Investment Manager and is a 50/50 blend of the JPMorgan EMBI Global Diversified Index and the JPMorgan GBI-EM Global Diversified Index.
The government-related debt, corporate debt, and securitized debt provides a broad-based measure of global investment-grade fixed-income debt markets, including government-related debt, corporate debt and securitized debt.
The Cash Pay Index is The ICE Bank of America Merrill Lynch High Yield (“BofAML“) BB-B US Cash Pay Non-Distressed High Yield® Index. It is constructed to mirror the BB-B non-distressed sector of the public high yield corporate debt market and is a subset of the ICE BofAML High Yield Cash Pay® Index.
The ICE BofAML 1-3 Year US Treasury Index tracks the performance of the direct sovereign debt of the US government having a maturity of at least one year and less than three years.
Annual Report 15
Information About Your Portfolio’s Expenses (unaudited)
Expense Example
As a shareholder in a Portfolio, you incur ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2021 through December 31, 2021 and held for the entire period.
Actual Expenses
For each share class of the Portfolios, the first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each share class of the Portfolios, the second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
16 Annual Report
| Portfolio | Beginning Account Value 7/1/21 | Ending Account Value 12/31/21 | Expenses Paid During Period* 7/1/21 - 12/31/21 | Annualized Expense Ratio During Period 7/1/21 - 12/31/21 |
|||||||
| Emerging Markets Debt | |||||||||||
| Institutional Shares | |||||||||||
| Actual | $1,000.00 | $ | 957.00 | $4.19 | 0.85% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.92 | $4.33 | 0.85% | ||||||
| Open Shares | |||||||||||
| Actual | $1,000.00 | $ | 956.00 | $5.18 | 1.05% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.91 | $5.35 | 1.05% | ||||||
| R6 Shares | |||||||||||
| Actual | $1,000.00 | $ | 958.00 | $3.95 | 0.80% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.17 | $4.08 | 0.80% | ||||||
| Global Fixed Income | |||||||||||
| Institutional Shares | |||||||||||
| Actual | $1,000.00 | $ | 946.10 | $3.43 | 0.70% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.68 | $3.57 | 0.70% | ||||||
| Open Shares | |||||||||||
| Actual | $1,000.00 | $ | 948.40 | $4.67 | 0.95% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.42 | $4.84 | 0.95% | ||||||
| US Corporate Income | |||||||||||
| Institutional Shares | |||||||||||
| Actual | $1,000.00 | $ | 1,009.70 | $2.79 | 0.55% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,022.43 | $2.80 | 0.55% | ||||||
| Open Shares | |||||||||||
| Actual | $1,000.00 | $ | 1,008.00 | $4.05 | 0.80% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.17 | $4.08 | 0.80% | ||||||
| R6 Shares | |||||||||||
| Actual | $1,000.00 | $ | 1,009.30 | $2.79 | 0.55% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,022.43 | $2.80 | 0.55% | ||||||
Annual Report 17
| Portfolio | Beginning Account Value 7/1/21 | Ending Account Value 12/31/21 | Expenses Paid During Period* 7/1/21 - 12/31/21 | Annualized Expense Ratio During Period 7/1/21 - 12/31/21 |
|||||||
| US Short Duration Fixed Income | |||||||||||
| Institutional Shares | |||||||||||
| Actual | $1,000.00 | $ | 996.00 | $1.61 | 0.32% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,023.59 | $1.63 | 0.32% | ||||||
| Open Shares | |||||||||||
| Actual | $1,000.00 | $ | 997.00 | $1.46 | 0.29% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,023.74 | $1.48 | 0.29% | ||||||
| * | Expenses are equal to the annualized expense ratio, net of expenses waivers and reimbursements, of each share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
18 Annual Report
The Lazard Funds, Inc. Portfolio Holdings Presented by Asset Class/Credit Rating and Region December 31, 2021
| Asset Class/S&P Credit Rating* | Lazard Global Fixed Income Portfolio | Lazard US Corporate Income Portfolio | Lazard US Short Duration Fixed Income Portfolio | ||||||||||
| Fixed Income | |||||||||||||
| AAA | 24.5 | % | — | % | 88.0 | % | |||||||
| AA+ | 4.7 | — | — | ||||||||||
| AA | 0.6 | — | — | ||||||||||
| AA- | 6.8 | — | — | ||||||||||
| A+ | 9.8 | — | — | ||||||||||
| A | 4.3 | — | — | ||||||||||
| A- | 9.4 | — | 3.5 | ||||||||||
| BBB+ | 10.2 | — | 7.5 | ||||||||||
| BBB | 5.6 | 1.8 | — | ||||||||||
| BBB- | 2.2 | 6.6 | — | ||||||||||
| BB+ | 2.8 | 17.3 | — | ||||||||||
| BB | 2.6 | 19.4 | — | ||||||||||
| BB- | — | 15.6 | — | ||||||||||
| B+ | 1.8 | 13.9 | — | ||||||||||
| B | — | 7.8 | — | ||||||||||
| B- | — | 2.8 | — | ||||||||||
| CCC+ | — | 1.7 | — | ||||||||||
| CCC | — | 0.5 | — | ||||||||||
| CCC- | — | 0.2 | — | ||||||||||
| Not Applicable | 14.2 | 9.6 | 0.5 | ||||||||||
| Short- Term Investments | 0.5 | 2.8 | 0.5 | ||||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | |||||||
| Asset Class/Region* | Lazard Emerging Markets Debt Portfolio | ||||||||||||
| Fixed Income | |||||||||||||
| Africa | 11.8 | % | |||||||||||
| Asia | 31.7 | ||||||||||||
| Europe | 18.9 | ||||||||||||
| North America | 12.4 | ||||||||||||
| South America | 18.0 | ||||||||||||
| Short- Term Investments | 7.2 | ||||||||||||
| Total Investments | 100.0 | % | |||||||||||
| * | Represents percentage of total investments. |
Annual Report 19
The
Lazard Funds, Inc. Portfolios of Investments December 31, 2021
The accompanying notes are an integral part of these financial statements.
20 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
| Azerbaijan | 1.0% | ||||||||||
| Republic of Azerbaijan, 3.500%, 09/01/32 | USD | 200 | $ | 202,038 | ||||||
| Bahamas | 0.5% | ||||||||||
| Commonwealth of Bahamas, 8.950%, 10/15/32 | USD | 100 | 91,000 | |||||||
| Bahrain | 1.2% | ||||||||||
| Bahrain Government International Bonds, 6.750%, 09/20/29 | USD | 230 | 247,940 | |||||||
| Barbados | 0.1% | ||||||||||
| Barbados Government International Bonds, 6.500%, 10/01/29 (#) | USD | 10 | 9,993 | |||||||
| Brazil | 5.3% | ||||||||||
| Brazil Letras do Tesouro Nacional, 0.000%, 01/01/24 | BRL | 2,600 | 378,511 | |||||||
| Brazil NTN-F: | ||||||||||
| 10.000%, 01/01/25 | BRL | 690 | 121,844 | |||||||
| 10.000%, 01/01/27 | BRL | 940 | 164,483 | |||||||
| 10.000%, 01/01/31 | BRL | 650 | 111,572 | |||||||
| Federal Republic of Brazil: | ||||||||||
| 3.875%, 06/12/30 | USD | 190 | 184,395 | |||||||
| 4.750%, 01/14/50 | USD | 135 | 120,175 | |||||||
| 1,080,980 | ||||||||||
| Chile | 1.2% | ||||||||||
| Bonos de la Tesoreria de la Republica en pesos: | ||||||||||
| 4.500%, 03/01/26 | CLP | 45,000 | 50,774 | |||||||
| 2.300%, 10/01/28 | CLP | 25,000 | 24,171 | |||||||
| 5.000%, 10/01/28 | CLP | 110,000 | 124,690 | |||||||
| 2.800%, 10/01/33 | CLP | 25,000 | 22,246 | |||||||
| 6.000%, 01/01/43 | CLP | 10,000 | 11,938 | |||||||
| 233,819 | ||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 21
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
| China | 5.7% | ||||||||||
| China Development Bank: | ||||||||||
| 1.860%, 04/09/23 | CNY | 1,100 | $ | 171,184 | ||||||
| 3.500%, 08/13/26 | CNY | 1,440 | 232,039 | |||||||
| 3.450%, 09/20/29 | CNY | 390 | 62,621 | |||||||
| China Government Bonds: | ||||||||||
| 3.120%, 12/05/26 | CNY | 2,470 | 396,421 | |||||||
| 2.680%, 05/21/30 | CNY | 1,360 | 210,022 | |||||||
| 3.810%, 09/14/50 | CNY | 460 | 77,072 | |||||||
| 1,149,359 | ||||||||||
| Colombia | 3.0% | ||||||||||
| Colombian Titulos De Tesoreria: | ||||||||||
| 6.250%, 11/26/25 | COP | 301,300 | 71,251 | |||||||
| 7.500%, 08/26/26 | COP | 757,000 | 184,616 | |||||||
| 5.750%, 11/03/27 | COP | 375,000 | 83,222 | |||||||
| 6.000%, 04/28/28 | COP | 217,800 | 48,330 | |||||||
| 7.000%, 06/30/32 | COP | 240,000 | 53,709 | |||||||
| Republic of Colombia: | ||||||||||
| 4.500%, 01/28/26 | USD | 20 | 20,923 | |||||||
| 3.875%, 04/25/27 | USD | 65 | 65,479 | |||||||
| 4.500%, 03/15/29 | USD | 35 | 35,729 | |||||||
| 3.000%, 01/30/30 | USD | 50 | 45,650 | |||||||
| 608,909 | ||||||||||
| Costa Rica | 0.4% | ||||||||||
| Republic of Costa Rica: | ||||||||||
| 4.250%, 01/26/23 | USD | 25 | 25,325 | |||||||
| 4.375%, 04/30/25 | USD | 25 | 25,481 | |||||||
| 7.000%, 04/04/44 | USD | 35 | 34,252 | |||||||
| 85,058 | ||||||||||
| Czech Republic | 1.1% | ||||||||||
| Czech Republic: | ||||||||||
| 2.400%, 09/17/25 | CZK | 1,300 | 57,428 | |||||||
| 2.500%, 08/25/28 | CZK | 810 | 35,692 | |||||||
| 1.200%, 03/13/31 | CZK | 1,890 | 74,333 | |||||||
| 2.000%, 10/13/33 | CZK | 480 | 20,130 | |||||||
| 4.200%, 12/04/36 | CZK | 600 | 32,270 | |||||||
| 219,853 | ||||||||||
The accompanying notes are an integral part of these financial statements.
22 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
| Dominican Republic | 1.3% | ||||||||||
| Dominican Republic: | ||||||||||
| 5.500%, 01/27/25 | USD | 40 | $ | 43,200 | ||||||
| 5.950%, 01/25/27 | USD | 10 | 11,125 | |||||||
| 4.500%, 01/30/30 (#) | USD | 120 | 122,160 | |||||||
| 7.450%, 04/30/44 | USD | 15 | 17,726 | |||||||
| 6.850%, 01/27/45 | USD | 20 | 22,016 | |||||||
| 6.400%, 06/05/49 | USD | 50 | 52,494 | |||||||
| 268,721 | ||||||||||
| Ecuador | 1.2% | ||||||||||
| Ecuador Government International Bonds: | ||||||||||
| 0.000%, 07/31/30 | USD | 356 | 198,359 | |||||||
| 5.000%, 07/31/30 (Ø) | USD | 60 | 49,417 | |||||||
| 247,776 | ||||||||||
| Egypt | 1.3% | ||||||||||
| Arab Republic of Egypt, 5.577%, 02/21/23 | USD | 200 | 206,960 | |||||||
| Egypt Government Bonds, 14.369%, 10/20/25 | EGP | 750 | 47,554 | |||||||
| 254,514 | ||||||||||
| El Salvador | 0.3% | ||||||||||
| Republic of El Salvador: | ||||||||||
| 5.875%, 01/30/25 | USD | 25 | 15,419 | |||||||
| 7.650%, 06/15/35 | USD | 35 | 19,760 | |||||||
| 7.625%, 02/01/41 | USD | 15 | 8,262 | |||||||
| 7.125%, 01/20/50 | USD | 20 | 10,891 | |||||||
| 54,332 | ||||||||||
| Gabon | 1.0% | ||||||||||
| Gabon Government International Bond, 7.000%, 11/24/31 (#) | USD | 200 | 195,500 | |||||||
| Guatemala | 0.3% | ||||||||||
| Republic of Guatemala: | ||||||||||
| 4.875%, 02/13/28 | USD | 25 | 26,810 | |||||||
| 5.375%, 04/24/32 (#) | USD | 10 | 11,136 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 23
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
| 5.375%, 04/24/32 | USD | 10 | $ | 11,136 | ||||||
| 6.125%, 06/01/50 (#) | USD | 15 | 17,201 | |||||||
| 66,283 | ||||||||||
| Hungary | 2.1% | ||||||||||
| Hungary Government Bonds: | ||||||||||
| 3.000%, 10/27/27 | HUF | 34,330 | 98,165 | |||||||
| 2.250%, 04/20/33 | HUF | 18,510 | 46,111 | |||||||
| 3.000%, 04/25/41 | HUF | 3,940 | 9,578 | |||||||
| Hungary Government International Bond: | ||||||||||
| 2.125%, 09/22/31 (#) | USD | 50 | 49,017 | |||||||
| 7.625%, 03/29/41 | USD | 68 | 111,265 | |||||||
| 3.125%, 09/21/51 (#) | USD | 110 | 108,302 | |||||||
| 422,438 | ||||||||||
| Indonesia | 7.3% | ||||||||||
| Indonesia Government International Bonds: | ||||||||||
| 2.150%, 07/28/31 | USD | 395 | 392,038 | |||||||
| 3.050%, 03/12/51 | USD | 50 | 49,438 | |||||||
| 3.350%, 03/12/71 | USD | 60 | 58,050 | |||||||
| Indonesia Treasury Bonds: | ||||||||||
| 8.375%, 09/15/26 | IDR | 4,849,000 | 383,939 | |||||||
| 9.000%, 03/15/29 | IDR | 818,000 | 66,376 | |||||||
| 8.250%, 05/15/29 | IDR | 1,545,000 | 120,922 | |||||||
| 7.000%, 09/15/30 | IDR | 1,032,000 | 75,087 | |||||||
| 6.500%, 02/15/31 | IDR | 770,000 | 54,404 | |||||||
| 8.750%, 05/15/31 | IDR | 1,150,000 | 93,194 | |||||||
| 8.375%, 03/15/34 | IDR | 912,000 | 71,763 | |||||||
| 8.250%, 05/15/36 | IDR | 648,000 | 50,353 | |||||||
| 8.375%, 04/15/39 | IDR | 920,000 | 72,716 | |||||||
| 1,488,280 | ||||||||||
| Ivory Coast | 1.0% | ||||||||||
| Ivory Coast, 6.125%, 06/15/33 | USD | 200 | 210,600 | |||||||
The accompanying notes are an integral part of these financial statements.
24 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
| Jamaica | 0.4% | ||||||||||
| Government of Jamaica: | ||||||||||
| 6.750%, 04/28/28 | USD | 25 | $ | 28,677 | ||||||
| 8.000%, 03/15/39 | USD | 15 | 20,782 | |||||||
| 7.875%, 07/28/45 | USD | 20 | 27,735 | |||||||
| 77,194 | ||||||||||
| Kazakhstan | 1.4% | ||||||||||
| Republic of Kazakhstan, 6.500%, 07/21/45 | USD | 200 | 286,720 | |||||||
| Kenya | 1.3% | ||||||||||
| Republic of Kenya, 8.000%, 05/22/32 | USD | 250 | 272,200 | |||||||
| Lebanon | 0.7% | ||||||||||
| Lebanese Republic: | ||||||||||
| 6.375%, 03/09/20 («) | USD | 97 | 10,064 | |||||||
| 8.250%, 04/12/21 («) | USD | 170 | 17,637 | |||||||
| 6.100%, 10/04/22 («) | USD | 201 | 20,100 | |||||||
| 6.000%, 01/27/23 («) | USD | 191 | 19,100 | |||||||
| 6.650%, 04/22/24 («) | USD | 87 | 8,700 | |||||||
| 6.250%, 11/04/24 («) | USD | 116 | 11,600 | |||||||
| 6.200%, 02/26/25 («) | USD | 37 | 3,700 | |||||||
| 6.600%, 11/27/26 («) | USD | 104 | 10,400 | |||||||
| 6.850%, 03/23/27 («) | USD | 114 | 11,400 | |||||||
| 6.750%, 11/29/27 («) | USD | 41 | 4,100 | |||||||
| 6.650%, 02/26/30 («) | USD | 99 | 9,900 | |||||||
| 7.000%, 03/23/32 («) | USD | 49 | 5,145 | |||||||
| 7.050%, 11/02/35 («) | USD | 60 | 6,300 | |||||||
| 7.250%, 03/23/37 («) | USD | 44 | 4,620 | |||||||
| 142,766 | ||||||||||
| Malaysia | 4.9% | ||||||||||
| Malaysia Government Bonds: | ||||||||||
| 3.882%, 03/10/22 | MYR | 1,064 | 256,370 | |||||||
| 3.906%, 07/15/26 | MYR | 260 | 64,395 | |||||||
| 3.899%, 11/16/27 | MYR | 1,487 | 368,220 | |||||||
| 4.498%, 04/15/30 | MYR | 350 | 89,130 | |||||||
| 3.844%, 04/15/33 | MYR | 330 | 78,931 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 25
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
| 3.828%, 07/05/34 | MYR | 20 | $ | 4,758 | ||||||
| 4.893%, 06/08/38 | MYR | 330 | 86,806 | |||||||
| Malaysia Treasury Bill, 0.000%, 05/10/22 | MYR | 216 | 51,520 | |||||||
| 1,000,130 | ||||||||||
| Mexico | 7.0% | ||||||||||
| Mexican Bonos: | ||||||||||
| 8.000%, 09/05/24 | MXN | 5,760 | 286,190 | |||||||
| 5.750%, 03/05/26 | MXN | 6,280 | 289,072 | |||||||
| 7.500%, 06/03/27 | MXN | 930 | 45,598 | |||||||
| 8.500%, 05/31/29 | MXN | 5,138 | 265,832 | |||||||
| 10.000%, 11/20/36 | MXN | 1,600 | 93,954 | |||||||
| 7.750%, 11/13/42 | MXN | 2,260 | 107,461 | |||||||
| Mexico Government International Bonds: | ||||||||||
| 3.900%, 04/27/25 | USD | 45 | 48,173 | |||||||
| 2.659%, 05/24/31 | USD | 25 | 24,364 | |||||||
| 4.280%, 08/14/41 | USD | 45 | 46,668 | |||||||
| United Mexican States: | ||||||||||
| 4.125%, 01/21/26 | USD | 55 | 60,400 | |||||||
| 4.500%, 04/22/29 | USD | 45 | 50,212 | |||||||
| 4.500%, 01/31/50 | USD | 15 | 15,922 | |||||||
| 5.000%, 04/27/51 | USD | 40 | 45,545 | |||||||
| 5.750%, 10/12/10 | USD | 44 | 50,581 | |||||||
| 1,429,972 | ||||||||||
| Mongolia | 0.2% | ||||||||||
| Mongolia International Bonds, 4.450%, 07/07/31 (#) | USD | 50 | 47,250 | |||||||
| Oman | 1.2% | ||||||||||
| Oman Government International Bonds, 4.750%, 06/15/26 | USD | 245 | 251,566 | |||||||
| Pakistan | 1.0% | ||||||||||
| Islamic Republic of Pakistan SR, 6.000%, 04/08/26 (#) | USD | 200 | 199,750 | |||||||
The accompanying notes are an integral part of these financial statements.
26 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
| Panama | 1.8% | ||||||||||
| Republic of Panama: | ||||||||||
| 3.160%, 01/23/30 | USD | 130 | $ | 134,696 | ||||||
| 4.500%, 04/16/50 | USD | 30 | 33,025 | |||||||
| 4.500%, 04/01/56 | USD | 75 | 82,678 | |||||||
| 3.870%, 07/23/60 | USD | 105 | 104,757 | |||||||
| 355,156 | ||||||||||
| Paraguay | 0.6% | ||||||||||
| Republic of Paraguay: | ||||||||||
| 5.000%, 04/15/26 | USD | 35 | 38,845 | |||||||
| 4.700%, 03/27/27 | USD | 35 | 38,846 | |||||||
| 6.100%, 08/11/44 | USD | 40 | 49,120 | |||||||
| 126,811 | ||||||||||
| Peru | 2.4% | ||||||||||
| Republic of Peru: | ||||||||||
| 5.940%, 02/12/29 | PEN | 80 | 20,415 | |||||||
| 2.844%, 06/20/30 | USD | 100 | 101,519 | |||||||
| 2.783%, 01/23/31 | USD | 155 | 153,915 | |||||||
| 6.950%, 08/12/31 | PEN | 175 | 47,051 | |||||||
| 6.900%, 08/12/37 | PEN | 290 | 73,954 | |||||||
| 5.350%, 08/12/40 | PEN | 55 | 11,606 | |||||||
| 3.300%, 03/11/41 | USD | 85 | 84,867 | |||||||
| 493,327 | ||||||||||
| Poland | 0.9% | ||||||||||
| Republic of Poland Government Bonds: | ||||||||||
| 2.500%, 07/25/26 | PLN | 190 | 44,416 | |||||||
| 2.750%, 04/25/28 | PLN | 440 | 102,905 | |||||||
| 1.250%, 10/25/30 | PLN | 220 | 44,923 | |||||||
| 192,244 | ||||||||||
| Qatar | 1.5% | ||||||||||
| Qatar Government International Bond, 6.400%, 01/20/40 | USD | 200 | 293,938 | |||||||
| Romania | 2.0% | ||||||||||
| Romanian Government Bonds: | ||||||||||
| 4.750%, 02/24/25 | RON | 320 | 73,746 | |||||||
| 4.850%, 04/22/26 | RON | 130 | 29,883 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 27
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
| 5.800%, 07/26/27 | RON | 210 | $ | 50,331 | ||||||
| 4.150%, 01/26/28 | RON | 350 | 77,353 | |||||||
| Romanian Government International Bonds: | ||||||||||
| 4.375%, 08/22/23 | USD | 48 | 50,414 | |||||||
| 3.000%, 02/14/31 | USD | 24 | 24,319 | |||||||
| 5.125%, 06/15/48 | USD | 28 | 32,998 | |||||||
| 4.000%, 02/14/51 (#) | USD | 62 | 61,839 | |||||||
| 400,883 | ||||||||||
| Russia | 6.3% | ||||||||||
| Russia Government Bonds - OFZ: | ||||||||||
| 7.750%, 09/16/26 | RUB | 10,640 | 138,481 | |||||||
| 7.950%, 10/07/26 | RUB | 13,190 | 172,708 | |||||||
| 6.700%, 03/14/29 | RUB | 31,100 | 376,250 | |||||||
| 8.500%, 09/17/31 | RUB | 7,040 | 94,816 | |||||||
| 7.700%, 03/23/33 | RUB | 3,820 | 48,779 | |||||||
| Russian Foreign Bond - Eurobond, 4.375%, 03/21/29 | USD | 400 | 440,000 | |||||||
| 1,271,034 | ||||||||||
| Saudi Arabia | 2.0% | ||||||||||
| Saudi Government International Bond, 2.250%, 02/02/33 | USD | 415 | 405,014 | |||||||
| South Africa | 6.2% | ||||||||||
| Republic of South Africa: | ||||||||||
| 10.500%, 12/21/26 | ZAR | 420 | 29,176 | |||||||
| 4.850%, 09/30/29 | USD | 10 | 10,327 | |||||||
| 8.000%, 01/31/30 | ZAR | 5,320 | 308,524 | |||||||
| 5.875%, 06/22/30 | USD | 75 | 83,405 | |||||||
| 8.250%, 03/31/32 | ZAR | 1,980 | 111,829 | |||||||
| 8.500%, 01/31/37 | ZAR | 6,840 | 364,130 | |||||||
| 5.650%, 09/27/47 | USD | 30 | 28,740 | |||||||
| 8.750%, 02/28/48 | ZAR | 1,445 | 75,727 | |||||||
| 6.300%, 06/22/48 | USD | 90 | 93,487 | |||||||
| 5.750%, 09/30/49 | USD | 35 | 33,563 | |||||||
| Republic of South Africa Government Bonds, 8.875%, 02/28/35 | ZAR | 1,020 | 57,507 | |||||||
The accompanying notes are an integral part of these financial statements.
28 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
| Republic of South Africa Government International Bonds, 4.850%, 09/27/27 | USD | 60 | $ | 63,060 | ||||||
| 1,259,475 | ||||||||||
| Sri Lanka | 0.3% | ||||||||||
| Republic of Sri Lanka: | ||||||||||
| 6.125%, 06/03/25 | USD | 10 | 5,192 | |||||||
| 6.825%, 07/18/26 | USD | 5 | 2,520 | |||||||
| 6.200%, 05/11/27 | USD | 50 | 25,072 | |||||||
| 6.750%, 04/18/28 | USD | 35 | 17,561 | |||||||
| 50,345 | ||||||||||
| Suriname | 0.0% | ||||||||||
| Republic of Suriname, 9.250%, 10/26/26 | USD | 10 | 7,355 | |||||||
| Thailand | 1.7% | ||||||||||
| Thailand Government Bonds: | ||||||||||
| 3.650%, 06/20/31 | THB | 1,440 | 49,630 | |||||||
| 3.775%, 06/25/32 | THB | 2,590 | 90,519 | |||||||
| 3.400%, 06/17/36 | THB | 3,390 | 112,634 | |||||||
| 3.300%, 06/17/38 | THB | 2,690 | 88,235 | |||||||
| 341,018 | ||||||||||
| Turkey | 2.1% | ||||||||||
| Republic of Turkey: | ||||||||||
| 6.250%, 09/26/22 | USD | 55 | 55,088 | |||||||
| 7.375%, 02/05/25 | USD | 95 | 95,333 | |||||||
| 4.875%, 10/09/26 | USD | 65 | 58,837 | |||||||
| 6.000%, 03/25/27 | USD | 60 | 56,355 | |||||||
| 5.750%, 05/11/47 | USD | 95 | 76,831 | |||||||
| Turkey Government Bonds: | ||||||||||
| 8.000%, 03/12/25 | TRY | 600 | 30,206 | |||||||
| 12.600%, 10/01/25 | TRY | 670 | 37,212 | |||||||
| 10.500%, 08/11/27 | TRY | 410 | 18,410 | |||||||
| 428,272 | ||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 29
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
| Ukraine | 2.1% | ||||||||||
| Ukraine Government Bonds: | ||||||||||
| 7.750%, 09/01/26 | USD | 100 | $ | 94,750 | ||||||
| 9.750%, 11/01/28 | USD | 200 | 200,937 | |||||||
| 0.000%, 05/31/40 (§) | USD | 137 | 124,182 | |||||||
| 419,869 | ||||||||||
| Uruguay | 1.4% | ||||||||||
| Republica Orient Uruguay: | ||||||||||
| 4.375%, 10/27/27 | USD | 30 | 33,596 | |||||||
| 4.375%, 01/23/31 | USD | 60 | 69,068 | |||||||
| 5.100%, 06/18/50 | USD | 85 | 112,561 | |||||||
| 4.975%, 04/20/55 | USD | 60 | 78,574 | |||||||
| 293,799 | ||||||||||
| Uzbekistan | 0.9% | ||||||||||
| Republic of Uzbekistan International Bond, 3.900%, 10/19/31 (#) | USD | 200 | 191,500 | |||||||
| Venezuela | 0.3% | ||||||||||
| Republic of Venezuela: | ||||||||||
| 8.250%, 10/13/24 («) | USD | 1,038 | 62,280 | |||||||
| 7.000%, 03/31/38 («) | USD | 58 | 3,480 | |||||||
| 65,760 | ||||||||||
| Zambia | 0.8% | ||||||||||
| Republic of Zambia, 8.500%, 04/14/24 | USD | 200 | 156,938 | |||||||
| Total Foreign Government Obligations (Cost $18,824,034) | 17,666,648 | |||||||||
| Quasi Government Bonds | 0.2% | ||||||||||
| Mexico | 0.1% | ||||||||||
| Petroleos Mexicanos, 6.750%, 09/21/47 | USD | 16 | 14,120 | |||||||
The accompanying notes are an integral part of these financial statements.
30 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
| Venezuela | 0.1% | ||||||||||
| Petroleos de Venezuela SA: | ||||||||||
| 12.750%, 02/17/22 («) | USD | 273 | $ | 8,873 | ||||||
| 6.000%, 11/15/26 («) | USD | 124 | 4,650 | |||||||
| 5.500%, 04/12/37 («) | USD | 100 | 3,750 | |||||||
| 17,273 | ||||||||||
| Total Quasi Government Bonds (Cost $257,463) | 31,393 | |||||||||
| Supranational Bonds | 0.1% | ||||||||||
| International Finance Corp., 8.000%, 10/09/23 (Cost $14,213) | IDR | 200,000 | 14,811 | |||||||
| Description | Shares | Fair Value | ||||||||
| Short-Term Investments | 7.0% | ||||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $1,425,840) |
1,425,840 | $ | 1,425,840 | |||||||
| Total Investments | 97.9% (Cost $21,263,843) (») |
$ | 19,877,021 | ||||||||
| Cash and Other Assets in Excess of Liabilities | 2.1% | 419,054 | |||||||||
| Net Assets | 100.0% | $ | 20,296,075 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 31
Lazard Emerging Markets Debt Portfolio (continued)
Forward Currency Contracts open at December 31, 2021:
| Currency Purchased |
Quantity | Currency Sold |
Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||
| BRL | 793,608 | USD | 141,433 | UBS | 02/02/22 | $ | 77 | $ | — | |||||||||
| COP | 40,310,000 | USD | 10,000 | SCB | 02/09/22 | — | 128 | |||||||||||
| CZK | 3,531,189 | USD | 161,348 | BOA | 01/20/22 | 27 | — | |||||||||||
| CZK | 3,531,189 | USD | 161,311 | BRC | 01/20/22 | 64 | — | |||||||||||
| CZK | 5,296,784 | USD | 242,078 | CIT | 01/20/22 | — | 15 | |||||||||||
| EUR | 36,700 | HUF | 13,481,745 | BOA | 01/20/22 | 308 | — | |||||||||||
| EUR | 60,000 | HUF | 21,961,800 | CIT | 01/20/22 | 748 | — | |||||||||||
| EUR | 66,700 | PLN | 311,949 | BOA | 01/20/22 | — | 1,382 | |||||||||||
| EUR | 122,640 | PLN | 567,075 | BOA | 01/20/22 | — | 930 | |||||||||||
| EUR | 57,360 | PLN | 265,399 | BRC | 01/20/22 | — | 478 | |||||||||||
| EUR | 60,000 | PLN | 277,362 | CIT | 01/20/22 | — | 437 | |||||||||||
| EUR | 26,604 | USD | 30,000 | SCB | 01/20/22 | 298 | — | |||||||||||
| HUF | 65,960,400 | USD | 211,868 | BOA | 01/20/22 | — | 8,886 | |||||||||||
| HUF | 1,029,900 | USD | 3,145 | BRC | 01/20/22 | 25 | — | |||||||||||
| HUF | 65,960,400 | USD | 211,632 | BRC | 01/20/22 | — | 8,650 | |||||||||||
| HUF | 65,960,400 | USD | 211,746 | SCB | 01/20/22 | — | 8,764 | |||||||||||
| IDR | 142,470,000 | USD | 10,000 | SCB | 01/11/22 | — | 9 | |||||||||||
| IDR | 301,058,816 | USD | 20,892 | SCB | 01/11/22 | 220 | — | |||||||||||
| IDR | 132,151,184 | USD | 9,225 | UBS | 01/11/22 | 42 | — | |||||||||||
| INR | 1,170,234 | USD | 15,600 | BRC | 02/09/22 | 83 | — | |||||||||||
| INR | 3,127,042 | USD | 41,680 | BRC | 02/09/22 | 226 | — | |||||||||||
| INR | 3,204,854 | USD | 42,720 | JPM | 02/09/22 | 229 | — | |||||||||||
| INR | 7,557,500 | USD | 100,000 | SCB | 02/02/22 | 1,358 | — | |||||||||||
| MXN | 207,065 | USD | 10,000 | BOA | 01/20/22 | 86 | — | |||||||||||
| MXN | 294,447 | USD | 13,727 | BOA | 01/20/22 | 616 | — | |||||||||||
| MXN | 425,491 | USD | 20,629 | BOA | 01/20/22 | 96 | — | |||||||||||
| MXN | 4,098,514 | USD | 198,600 | SCB | 01/20/22 | 1,035 | — | |||||||||||
| MYR | 1,101,905 | USD | 259,103 | SCB | 03/23/22 | 4,521 | — | |||||||||||
| PEN | 263,026 | USD | 65,299 | BRC | 01/18/22 | 559 | — | |||||||||||
| PLN | 416,096 | USD | 104,513 | BOA | 01/20/22 | — | 1,347 | |||||||||||
| PLN | 416,096 | USD | 104,498 | BRC | 01/20/22 | — | 1,332 | |||||||||||
| PLN | 1,493,679 | USD | 375,263 | CIT | 01/20/22 | — | 4,922 | |||||||||||
| PLN | 416,096 | USD | 104,442 | SCB | 01/20/22 | — | 1,276 | |||||||||||
| PLN | 1,418,996 | USD | 356,675 | UBS | 01/20/22 | — | 4,851 | |||||||||||
| RON | 284,186 | USD | 66,087 | BRC | 01/20/22 | — | 789 | |||||||||||
| RON | 441,972 | USD | 100,448 | BRC | 01/20/22 | 1,104 | — | |||||||||||
| RUB | 3,146,184 | USD | 41,825 | BOA | 01/24/22 | — | 53 | |||||||||||
The accompanying notes are an integral part of these financial statements.
32 Annual Report
Lazard Emerging Markets Debt Portfolio (continued)
Forward Currency Contracts open at December 31, 2021:
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||
| THB | 18,794,554 | USD | 570,119 | CIT | 02/24/22 | $ | — | $ | 7,637 | |||||||||
| THB | 327,860 | USD | 10,000 | SCB | 02/24/22 | — | 188 | |||||||||||
| TRY | 328,776 | USD | 23,294 | BRC | 01/24/22 | 1,120 | — | |||||||||||
| UAH | 1,461,111 | USD | 52,710 | BRC | 02/18/22 | — | 22 | |||||||||||
| USD | 40,000 | BRL | 225,200 | BRC | 02/02/22 | — | 156 | |||||||||||
| USD | 10,000 | BRL | 57,385 | SCB | 02/02/22 | — | 232 | |||||||||||
| USD | 36,127 | BRL | 204,288 | SSB | 02/02/22 | — | 300 | |||||||||||
| USD | 10,000 | CLP | 8,470,600 | BOA | 01/24/22 | 84 | — | |||||||||||
| USD | 37,056 | CLP | 29,711,211 | BOA | 01/24/22 | 2,276 | — | |||||||||||
| USD | 60,000 | CNY | 384,109 | BRC | 01/20/22 | — | 197 | |||||||||||
| USD | 10,000 | CNY | 63,639 | SCB | 01/20/22 | 27 | — | |||||||||||
| USD | 101,887 | CNY | 654,614 | SCB | 01/20/22 | — | 702 | |||||||||||
| USD | 53,530 | COP | 211,663,924 | BRC | 02/09/22 | 1,694 | — | |||||||||||
| USD | 58,689 | CZK | 1,282,297 | BOA | 01/20/22 | 88 | — | |||||||||||
| USD | 20,028 | CZK | 451,678 | BRC | 01/20/22 | — | 613 | |||||||||||
| USD | 20,000 | CZK | 438,132 | SCB | 01/20/22 | — | 23 | |||||||||||
| USD | 776,833 | EUR | 668,991 | BRC | 01/20/22 | 14,945 | — | |||||||||||
| USD | 26,700 | HUF | 8,650,800 | BOA | 01/20/22 | 79 | — | |||||||||||
| USD | 36,560 | HUF | 11,905,764 | BOA | 01/20/22 | — | 78 | |||||||||||
| USD | 43,440 | HUF | 14,148,495 | BRC | 01/20/22 | — | 100 | |||||||||||
| USD | 10,000 | HUF | 3,252,180 | SCB | 01/20/22 | — | 8 | |||||||||||
| USD | 40,000 | IDR | 575,680,000 | BOA | 01/11/22 | — | 370 | |||||||||||
| USD | 20,861 | IDR | 301,058,816 | SCB | 01/25/22 | — | 231 | |||||||||||
| USD | 46,502 | MXN | 971,179 | BOA | 01/20/22 | — | 803 | |||||||||||
| USD | 82,864 | MXN | 1,791,179 | BOA | 01/20/22 | — | 4,383 | |||||||||||
| USD | 80,000 | MXN | 1,641,824 | SCB | 01/20/22 | 28 | — | |||||||||||
| USD | 173,124 | MXN | 3,745,614 | UBS | 01/20/22 | — | 9,322 | |||||||||||
| USD | 200,000 | MYR | 849,800 | BOA | 03/23/22 | — | 3,310 | |||||||||||
| USD | 10,000 | PEN | 39,930 | BRC | 01/18/22 | 2 | — | |||||||||||
| USD | 36,560 | PLN | 151,927 | BOA | 01/20/22 | — | 1,109 | |||||||||||
| USD | 44,851 | PLN | 186,495 | BOA | 01/20/22 | — | 1,388 | |||||||||||
| USD | 43,440 | PLN | 180,638 | BRC | 01/20/22 | — | 1,347 | |||||||||||
| USD | 10,000 | PLN | 41,507 | SCB | 01/20/22 | — | 291 | |||||||||||
| USD | 20,000 | PLN | 80,705 | SCB | 01/20/22 | — | 10 | |||||||||||
| USD | 64,200 | RON | 283,664 | BRC | 01/20/22 | — | 978 | |||||||||||
| USD | 100,059 | RON | 441,972 | BRC | 02/28/22 | — | 1,094 | |||||||||||
| USD | 30,000 | RON | 132,311 | SCB | 01/20/22 | — | 401 | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 33
Lazard Emerging Markets Debt Portfolio (concluded)
Forward Currency Contracts open at December 31, 2021:
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||
| USD | 35,800 | RON | 158,308 | UBS | 01/20/22 | $ | — | $ | 575 | |||||||||
| USD | 40,000 | RUB | 2,989,000 | BOA | 01/24/22 | 315 | — | |||||||||||
| USD | 35,850 | UAH | 981,573 | BOA | 02/18/22 | 455 | — | |||||||||||
| USD | 24,150 | UAH | 660,382 | CIT | 02/18/22 | 337 | — | |||||||||||
| USD | 118,643 | ZAR | 1,797,360 | BOA | 01/20/22 | 6,103 | — | |||||||||||
| USD | 36,096 | ZAR | 576,751 | BRC | 01/20/22 | — | 17 | |||||||||||
| USD | 118,841 | ZAR | 1,797,360 | BRC | 01/20/22 | 6,301 | — | |||||||||||
| USD | 20,000 | ZAR | 319,406 | SCB | 01/20/22 | 1 | — | |||||||||||
| USD | 20,000 | ZAR | 319,871 | SCB | 01/20/22 | — | 28 | |||||||||||
| USD | 118,594 | ZAR | 1,797,360 | SCB | 01/20/22 | 6,054 | — | |||||||||||
| UYU | 439,830 | USD | 9,809 | HSB | 03/07/22 | — | 63 | |||||||||||
| ZAR | 806,367 | USD | 50,000 | BRC | 01/20/22 | 490 | — | |||||||||||
| ZAR | 3,931,232 | USD | 241,965 | BRC | 01/20/22 | 4,185 | — | |||||||||||
| Total gross unrealized appreciation/depreciation on Forward Currency Contracts | $ | 56,306 | $ | 80,225 | ||||||||||||||
The accompanying notes are an integral part of these financial statements.
34 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 35
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Fixed Income Portfolio (continued) | ||||||||||
| Apple, Inc., 3.000%, 06/20/27 | USD | 80 | $ | 85,709 | ||||||
| Ball Corp., 4.875%, 03/15/26 | USD | 50 | 55,075 | |||||||
| Bank of America Corp.: | ||||||||||
| 1.486% (SOFR + 1.460%), 05/19/24 (§) | USD | 60 | 60,434 | |||||||
| 1.978% (CDOR 3 Month + 0.600%), 09/15/27 (§) | CAD | 125 | 97,675 | |||||||
| Citigroup, Inc., 1.281% (SOFR + 0.528%), 11/03/25 (§) | USD | 90 | 89,758 | |||||||
| Clean Harbors, Inc., 4.875%, 07/15/27 | USD | 45 | 46,350 | |||||||
| Constellation Brands, Inc., 4.250%, 05/01/23 | USD | 40 | 41,684 | |||||||
| DaVita, Inc., 4.625%, 06/01/30 | USD | 40 | 40,950 | |||||||
| Dell International LLC, 5.300%, 10/01/29 | USD | 75 | 87,915 | |||||||
| John Deere Financial, Inc., 2.410%, 01/14/25 | CAD | 125 | 100,708 | |||||||
| Johnson Controls International PLC, 1.750%, 09/15/30 | USD | 50 | 47,852 | |||||||
| JPMorgan Chase & Co., 3.540% (USD LIBOR 3 Month + 1.380%), 05/01/28 (§) | USD | 100 | 108,603 | |||||||
| Kimberly-Clark Corp., 3.200%, 04/25/29 | USD | 55 | 59,451 | |||||||
| McDonald’s Corp., 3.125%, 03/04/25 | CAD | 110 | 90,465 | |||||||
| Microsoft Corp., 3.500%, 11/15/42 | USD | 35 | 40,225 | |||||||
| Morgan Stanley, 3.625%, 01/20/27 | USD | 80 | 86,733 | |||||||
| Mueller Water Products, Inc., 4.000%, 06/15/29 (#) | USD | 50 | 50,500 | |||||||
The accompanying notes are an integral part of these financial statements.
36 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Fixed Income Portfolio (continued) | ||||||||||
| PepsiCo, Inc., 2.875%, 10/15/49 | USD | 45 | $ | 47,183 | ||||||
| Pfizer, Inc., 2.625%, 04/01/30 | USD | 90 | 94,821 | |||||||
| Prologis LP REIT, 1.250%, 10/15/30 | USD | 105 | 97,647 | |||||||
| Schneider Electric SE, 2.950%, 09/27/22 | USD | 100 | 101,755 | |||||||
| Service Corp. International, 4.625%, 12/15/27 | USD | 60 | 62,625 | |||||||
| Starbucks Corp., 4.450%, 08/15/49 | USD | 35 | 43,081 | |||||||
| The Goldman Sachs Group, Inc., 1.992% (SOFR + 1.090%), 01/27/32 (§) | USD | 85 | 81,496 | |||||||
| The Home Depot, Inc., 5.875%, 12/16/36 | USD | 60 | 84,985 | |||||||
| The Procter & Gamble Co., 1.200%, 10/29/30 | USD | 45 | 42,558 | |||||||
| Toyota Motor Credit Corp., 2.150%, 02/13/30 | USD | 85 | 85,177 | |||||||
| United Rentals North America, Inc., 4.875%, 01/15/28 | USD | 60 | 63,052 | |||||||
| Verizon Communications, Inc., 3.875%, 02/08/29 | USD | 100 | 110,817 | |||||||
| Visa, Inc., 0.750%, 08/15/27 | USD | 45 | 43,138 | |||||||
| 2,438,027 | ||||||||||
| Total Corporate Bonds (Cost $3,031,703) | 3,032,145 | |||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 37
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Fixed Income Portfolio (continued) | ||||||||||
| Foreign Government Obligations | 49.0% | ||||||||||
| Australia | 2.1% | ||||||||||
| New South Wales Treasury Corp., 1.250%, 11/20/30 | AUD | 130 | $ | 89,150 | ||||||
| Queensland Treasury Corp., 1.250%, 03/10/31 | AUD | 130 | 89,082 | |||||||
| 178,232 | ||||||||||
| Bahamas | 1.3% | ||||||||||
| Bahamas Government International Bonds, 6.950%, 11/20/29 | USD | 5 | 4,314 | |||||||
| Commonwealth of Bahamas, 6.950%, 11/20/29 | USD | 118 | 101,797 | |||||||
| 106,111 | ||||||||||
| Bermuda | 2.5% | ||||||||||
| Government of Bermuda, 3.717%, 01/25/27 | USD | 200 | 213,537 | |||||||
| Canada | 5.2% | ||||||||||
| City of Vancouver, 2.900%, 11/20/25 | CAD | 90 | 74,790 | |||||||
| Export Development Canada, 1.650%, 07/31/24 | CAD | 120 | 95,795 | |||||||
| Province of British Columbia Canada, 3.200%, 06/18/44 | CAD | 50 | 44,968 | |||||||
| Province of Quebec: | ||||||||||
| 2.500%, 04/20/26 | USD | 85 | 89,047 | |||||||
| 1.850%, 02/13/27 | CAD | 170 | 136,272 | |||||||
| 440,872 | ||||||||||
| Chile | 3.2% | ||||||||||
| Bonos de la Tesoreria de la Republica en pesos, 2.300%, 10/01/28 | CLP | 165,000 | 159,528 | |||||||
| Republic of Chile, 0.830%, 07/02/31 | EUR | 100 | 113,657 | |||||||
| 273,185 | ||||||||||
The accompanying notes are an integral part of these financial statements.
38 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Fixed Income Portfolio (continued) | ||||||||||
| Colombia | 0.9% | ||||||||||
| Republic of Colombia, 9.850%, 06/28/27 | COP | 288,000 | $ | 78,266 | ||||||
| Czech Republic | 3.1% | ||||||||||
| Czech Republic: | ||||||||||
| 1.000%, 06/26/26 | CZK | 2,080 | 86,020 | |||||||
| 2.000%, 10/13/33 | CZK | 4,180 | 175,301 | |||||||
| 261,321 | ||||||||||
| Hungary | 3.2% | ||||||||||
| Hungary Government Bonds: | ||||||||||
| 2.750%, 12/22/26 | HUF | 25,370 | 72,677 | |||||||
| 3.000%, 10/27/27 | HUF | 25,210 | 72,086 | |||||||
| 2.250%, 04/20/33 | HUF | 28,620 | 71,297 | |||||||
| Hungary Government International Bond, 1.750%, 06/05/35 | EUR | 45 | 53,218 | |||||||
| 269,278 | ||||||||||
| Italy | 1.4% | ||||||||||
| Italy Buoni Poliennali Del Tesoro, 1.450%, 03/01/36 | EUR | 108 | 123,056 | |||||||
| Japan | 2.3% | ||||||||||
| Japan International Cooperation Agency, 1.750%, 04/28/31 | USD | 200 | 199,333 | |||||||
| Mexico | 1.4% | ||||||||||
| Mexican Bonos, 7.500%, 06/03/27 | MXN | 1,630 | 79,918 | |||||||
| United Mexican States, 6.750%, 02/06/24 | GBP | 25 | 37,578 | |||||||
| 117,496 | ||||||||||
| Morocco | 1.2% | ||||||||||
| Morocco Government International Bond, 1.500%, 11/27/31 | EUR | 100 | 104,443 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 39
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Fixed Income Portfolio (continued) | ||||||||||
| New Zealand | 5.3% | ||||||||||
| Housing New Zealand, Ltd. MTN, 3.420%, 10/18/28 | NZD | 120 | $ | 84,827 | ||||||
| New Zealand Local Government Funding Agency Bonds: | ||||||||||
| 2.250%, 04/15/24 | NZD | 250 | 171,265 | |||||||
| 1.500%, 04/20/29 | NZD | 240 | 149,720 | |||||||
| 2.000%, 04/15/37 | NZD | 80 | 46,246 | |||||||
| 452,058 | ||||||||||
| Norway | 2.7% | ||||||||||
| Oslo Kommune: | ||||||||||
| 2.300%, 03/14/24 | NOK | 1,000 | 114,817 | |||||||
| 2.350%, 09/04/24 | NOK | 1,000 | 114,786 | |||||||
| 229,603 | ||||||||||
| Panama | 2.1% | ||||||||||
| Republic of Panama, 8.875%, 09/30/27 | USD | 130 | 175,078 | |||||||
| Peru | 1.6% | ||||||||||
| Peru Government Bonds: | ||||||||||
| 6.150%, 08/12/32 (#) | PEN | 365 | 91,881 | |||||||
| 3.000%, 01/15/34 | USD | 45 | 44,775 | |||||||
| 136,656 | ||||||||||
| Romania | 3.3% | ||||||||||
| Romanian Government Bonds: | ||||||||||
| 4.750%, 02/24/25 | RON | 695 | 160,166 | |||||||
| 3.650%, 09/24/31 | RON | 360 | 72,942 | |||||||
| 3.875%, 10/29/35 | EUR | 35 | 43,258 | |||||||
| 276,366 | ||||||||||
The accompanying notes are an integral part of these financial statements.
40 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Fixed Income Portfolio (continued) | ||||||||||
| Singapore | 1.1% | ||||||||||
| Singapore Government Bond, 3.375%, 09/01/33 | SGD | 110 | $ | 94,134 | ||||||
| Spain | 1.4% | ||||||||||
| Spain Government Bond, 1.000%, 07/30/42 | EUR | 110 | 121,934 | |||||||
| Thailand | 1.0% | ||||||||||
| Thailand Government Bonds, 1.585%, 12/17/35 | THB | 3,110 | 84,732 | |||||||
| United Kingdom | 2.7% | ||||||||||
| United Kingdom Gilt: | ||||||||||
| 0.875%, 07/31/33 | GBP | 65 | 86,421 | |||||||
| 1.750%, 09/07/37 | GBP | 65 | 95,351 | |||||||
| 1.500%, 07/22/47 | GBP | 32 | 46,433 | |||||||
| 228,205 | ||||||||||
| Total Foreign
Government Obligations (Cost $4,474,947) | 4,163,896 | |||||||||
| Quasi Government Bonds | 1.5% | ||||||||||
| Germany | 1.5% | ||||||||||
| Kreditanstalt fuer Wiederaufbau, 1.750%, 09/14/29 (Cost $132,925) | USD | 130 | 132,078 | |||||||
| Supranational Bonds | 10.1% | ||||||||||
| Asian Development Bank, 2.125%, 03/19/25 | USD | 60 | 62,101 | |||||||
| European Investment Bank, 1.000%, 01/28/28 | CAD | 130 | 98,692 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 41
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Fixed Income Portfolio (continued) | ||||||||||
| Inter-American Development Bank, 7.875%, 03/14/23 | IDR | 1,840,000 | $ | 133,838 | ||||||
| International Bank for Reconstruction & Development: | ||||||||||
| 1.900%, 01/16/25 | CAD | 160 | 128,441 | |||||||
| 2.900%, 11/26/25 | AUD | 110 | 84,041 | |||||||
| 1.250%, 03/16/26 | NOK | 810 | 90,005 | |||||||
| 1.125%, 09/13/28 | USD | 45 | 43,914 | |||||||
| International Finance Corp.: | ||||||||||
| 2.125%, 04/07/26 | USD | 120 | 124,393 | |||||||
| 1.500%, 04/15/35 | AUD | 142 | 92,726 | |||||||
| Total Supranational
Bonds (Cost $870,888) | 858,151 | |||||||||
| US Municipal Bonds | 1.2% | ||||||||||
| California | 1.2% | ||||||||||
| State of California: | ||||||||||
| 4.500%, 04/01/33 | USD | 45 | 52,198 | |||||||
| 7.550%, 04/01/39 | USD | 30 | 50,066 | |||||||
| 102,264 | ||||||||||
| Total US Municipal
Bonds (Cost $96,067) | 102,264 | |||||||||
| US Treasury Securities | 1.0% | ||||||||||
| U.S. Treasury Bond, 1.750%, 08/15/41 (Cost $82,645) | USD | 85 | 82,410 | |||||||
The accompanying notes are an integral part of these financial statements.
42 Annual Report
| Description | Shares | Fair Value | ||||||||
| Lazard Global Fixed Income Portfolio (continued) | ||||||||||
| Short-Term Investments | 0.5% | ||||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $43,650) |
43,650 | $ | 43,650 | |||||||
| Total Investments | 98.9% (Cost $8,732,825) (») |
$ | 8,414,594 | ||||||||
| Cash and Other Assets in Excess of Liabilities | 1.1% | 90,934 | |||||||||
| Net Assets | 100.0% | $ | 8,505,528 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 43
Lazard Global Fixed Income Portfolio (continued)
Forward Currency Contracts open at December 31, 2021:
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date |
Unrealized Appreciation |
Unrealized Depreciation | |||||||||||
| AUD | 73,699 | USD | 53,889 | HSB | 01/20/22 | $ | — | $ | 267 | |||||||||
| CAD | 22,831 | USD | 18,500 | HSB | 01/20/22 | — | 451 | |||||||||||
| CAD | 77,692 | USD | 62,848 | HSB | 01/20/22 | — | 1,430 | |||||||||||
| CAD | 47,350 | USD | 37,323 | JPM | 01/20/22 | 109 | — | |||||||||||
| CAD | 53,036 | USD | 42,898 | JPM | 01/20/22 | — | 971 | |||||||||||
| CAD | 71,763 | USD | 57,818 | JPM | 01/20/22 | — | 1,088 | |||||||||||
| CHF | 20,804 | USD | 22,591 | HSB | 01/20/22 | 249 | — | |||||||||||
| CHF | 61,997 | USD | 67,318 | JPM | 01/20/22 | 749 | — | |||||||||||
| CLP | 10,213,305 | USD | 12,300 | CIT | 01/13/22 | — | 325 | |||||||||||
| CLP | 34,227,294 | USD | 40,776 | CIT | 01/13/22 | — | 646 | |||||||||||
| CNH | 2,378,693 | USD | 367,258 | HSB | 01/20/22 | 6,572 | — | |||||||||||
| CNH | 214,099 | USD | 33,300 | HSB | 06/02/22 | 57 | — | |||||||||||
| CNH | 1,789,642 | USD | 276,848 | HSB | 06/02/22 | 1,977 | — | |||||||||||
| EUR | 43,544 | USD | 50,677 | CIT | 01/20/22 | — | 1,087 | |||||||||||
| EUR | 62,290 | USD | 71,000 | CIT | 01/20/22 | — | 60 | |||||||||||
| EUR | 975,264 | USD | 1,135,034 | HSB | 01/20/22 | — | 24,344 | |||||||||||
| EUR | 16,686 | USD | 18,899 | JPM | 01/20/22 | 104 | — | |||||||||||
| EUR | 100,146 | USD | 116,554 | MSC | 01/20/22 | — | 2,502 | |||||||||||
| INR | 3,498,117 | USD | 46,776 | JPM | 01/28/22 | 164 | — | |||||||||||
| JPY | 37,770,641 | USD | 330,755 | CIT | 01/20/22 | — | 2,365 | |||||||||||
| JPY | 95,801,358 | USD | 838,935 | HSB | 01/20/22 | — | 6,008 | |||||||||||
| JPY | 9,313,280 | USD | 81,558 | JPM | 01/20/22 | — | 586 | |||||||||||
| KRW | 118,308,720 | USD | 100,774 | JPM | 01/28/22 | — | 1,306 | |||||||||||
| MXN | 199,973 | USD | 9,688 | JPM | 01/20/22 | 53 | — | |||||||||||
| PLN | 276,910 | USD | 69,910 | HSB | 01/20/22 | — | 1,253 | |||||||||||
| PLN | 301,628 | USD | 75,791 | JPM | 01/20/22 | — | 1,006 | |||||||||||
| RON | 96,063 | USD | 22,000 | HSB | 01/20/22 | 73 | — | |||||||||||
| RUB | 1,899,971 | USD | 26,178 | JPM | 01/20/22 | — | 930 | |||||||||||
| SEK | 418,428 | USD | 48,605 | JPM | 01/20/22 | — | 2,294 | |||||||||||
| USD | 93,665 | AUD | 126,128 | CIT | 01/20/22 | 1,897 | — | |||||||||||
| USD | 155,712 | AUD | 209,710 | HSB | 01/20/22 | 3,131 | — | |||||||||||
| USD | 66,252 | AUD | 89,222 | MSC | 01/20/22 | 1,336 | — | |||||||||||
| USD | 194,034 | CAD | 239,796 | CIT | 01/20/22 | 4,467 | — | |||||||||||
| USD | 331,301 | CAD | 409,552 | HSB | 01/20/22 | 7,536 | — | |||||||||||
| USD | 328,345 | CAD | 405,894 | JPM | 01/20/22 | 7,472 | — | |||||||||||
| USD | 22,000 | CLP | 17,497,480 | CIT | 01/13/22 | 1,485 | — | |||||||||||
The accompanying notes are an integral part of these financial statements.
44 Annual Report
Lazard Global Fixed Income Portfolio (concluded)
Forward Currency Contracts open at December 31, 2021:
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date |
Unrealized Appreciation |
Unrealized Depreciation | |||||||||||
| USD | 189,305 | CLP | 151,207,189 | CIT | 01/13/22 | $ | 12,022 | $ | — | |||||||||
| USD | 65,054 | COP | 248,214,491 | HSB | 05/02/22 | 4,840 | — | |||||||||||
| USD | 19,596 | CZK | 430,458 | HSB | 01/20/22 | — | 76 | |||||||||||
| USD | 27,526 | CZK | 608,540 | JPM | 01/20/22 | — | 285 | |||||||||||
| USD | 186,482 | CZK | 4,094,200 | JPM | 01/20/22 | — | 623 | |||||||||||
| USD | 18,035 | EUR | 15,497 | HSB | 01/20/22 | 387 | — | |||||||||||
| USD | 29,321 | EUR | 25,930 | HSB | 01/20/22 | — | 210 | |||||||||||
| USD | 82,300 | EUR | 71,553 | HSB | 01/20/22 | 811 | — | |||||||||||
| USD | 31,800 | EUR | 28,028 | JPM | 01/20/22 | — | 120 | |||||||||||
| USD | 34,564 | EUR | 30,501 | JPM | 01/20/22 | — | 172 | |||||||||||
| USD | 57,400 | EUR | 49,864 | JPM | 01/20/22 | 611 | — | |||||||||||
| USD | 20,300 | GBP | 15,127 | JPM | 01/20/22 | — | 174 | |||||||||||
| USD | 23,326 | GBP | 16,988 | JPM | 01/20/22 | 332 | — | |||||||||||
| USD | 24,682 | GBP | 18,663 | JPM | 01/20/22 | — | 578 | |||||||||||
| USD | 46,656 | GBP | 34,153 | JPM | 01/20/22 | 431 | — | |||||||||||
| USD | 86,431 | HUF | 26,856,760 | HSB | 01/20/22 | 3,784 | — | |||||||||||
| USD | 122,593 | HUF | 38,077,297 | JPM | 01/20/22 | 5,416 | — | |||||||||||
| USD | 35,588 | IDR | 515,847,348 | JPM | 01/28/22 | — | 542 | |||||||||||
| USD | 45,000 | JPY | 5,116,478 | HSB | 01/20/22 | 516 | — | |||||||||||
| USD | 105,900 | JPY | 12,199,256 | HSB | 01/20/22 | — | 164 | |||||||||||
| USD | 68,500 | MXN | 1,513,367 | HSB | 01/20/22 | — | 5,215 | |||||||||||
| USD | 333,179 | NOK | 2,811,546 | JPM | 01/20/22 | 14,015 | — | |||||||||||
| USD | 82,326 | NZD | 116,322 | CIT | 01/20/22 | 2,670 | — | |||||||||||
| USD | 61,262 | NZD | 86,560 | HSB | 01/20/22 | 1,986 | — | |||||||||||
| USD | 88,040 | NZD | 130,459 | HSB | 01/20/22 | — | 1,296 | |||||||||||
| USD | 48,905 | NZD | 69,858 | HSB | 05/10/22 | 1,178 | — | |||||||||||
| USD | 103,559 | NZD | 146,307 | JPM | 01/20/22 | 3,370 | — | |||||||||||
| USD | 35,712 | NZD | 49,982 | JPM | 05/10/22 | 1,564 | — | |||||||||||
| USD | 86,149 | PEN | 346,707 | JPM | 02/03/22 | — | 597 | |||||||||||
| USD | 130,940 | PLN | 518,650 | HSB | 01/20/22 | 2,347 | — | |||||||||||
| USD | 128,084 | RON | 550,310 | HSB | 01/20/22 | 1,638 | — | |||||||||||
| USD | 8,625 | SGD | 11,641 | HSB | 01/20/22 | — | 13 | |||||||||||
| USD | 25,335 | SGD | 34,200 | JPM | 01/20/22 | — | 41 | |||||||||||
| USD | 16,760 | THB | 561,820 | HSB | 01/20/22 | — | 57 | |||||||||||
| Total gross unrealized appreciation/depreciation on Forward Currency Contracts | $ | 95,349 | $ | 59,082 | ||||||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 45
The accompanying notes are an integral part of these financial statements.
46 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| MPT Operating Partnership LP, 3.500%, 03/15/31 | $ | 500 | $ | 505,625 | ||||
| MSCI, Inc., 3.250%, 08/15/33 (#) | 1,750 | 1,769,687 | ||||||
| 3,837,187 | ||||||||
| Chemicals | 2.8% | ||||||||
| Ashland LLC, 3.375%, 09/01/31 (#) | 1,000 | 992,500 | ||||||
| CF Industries, Inc., 3.450%, 06/01/23 | 1,150 | 1,185,661 | ||||||
| Methanex Corp., 5.125%, 10/15/27 | 1,000 | 1,050,000 | ||||||
| Mosaic Global Holdings, Inc., 7.300%, 01/15/28 | 775 | 960,328 | ||||||
| NOVA Chemicals Corp., 4.250%, 05/15/29 (#) | 1,750 | 1,757,105 | ||||||
| Valvoline, Inc., 3.625%, 06/15/31 (#) | 1,500 | 1,452,450 | ||||||
| WR Grace Holdings LLC, 4.875%, 06/15/27 (#) | 1,000 | 1,027,130 | ||||||
| 8,425,174 | ||||||||
| Commercial Services & Supplies | 5.2% | ||||||||
| ACCO Brands Corp., 4.250%, 03/15/29 (#) | 2,000 | 1,985,000 | ||||||
| Aramark Services, Inc., 5.000%, 04/01/25 (#) | 2,000 | 2,040,400 | ||||||
| Ashtead Capital, Inc., 4.375%, 08/15/27 (#) | 1,900 | 1,967,830 | ||||||
| Clean Harbors, Inc., 4.875%, 07/15/27 (#) | 2,000 | 2,060,000 | ||||||
| GFL Environmental, Inc., 3.500%, 09/01/28 (#) | 1,750 | 1,723,750 | ||||||
| KAR Auction Services, Inc., 5.125%, 06/01/25 (#) | 1,800 | 1,827,000 | ||||||
| Pitney Bowes, Inc., 6.875%, 03/15/27 (#) | 2,000 | 2,077,000 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 47
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| Prime Security Services Borrower LLC, 3.375%, 08/31/27 (#) | $ | 1,500 | $ | 1,448,085 | ||||
| The ADT Security Corp.: | ||||||||
| 4.125%, 06/15/23 | 500 | 519,322 | ||||||
| 4.125%, 08/01/29 (#) | 250 | 246,250 | ||||||
| 15,894,637 | ||||||||
| Construction Materials | 0.6% | ||||||||
| James Hardie International Finance DAC, 5.000%, 01/15/28 (#) | 1,760 | 1,830,400 | ||||||
| Consumer Finance | 0.7% | ||||||||
| Ford Motor Credit Co. LLC: | ||||||||
| 2.700%, 08/10/26 | 1,000 | 1,008,750 | ||||||
| 4.125%, 08/17/27 | 1,000 | 1,079,380 | ||||||
| 2,088,130 | ||||||||
| Containers & Packaging | 2.6% | ||||||||
| Ardagh Metal Packaging Finance USA LLC, 4.000%, 09/01/29 (#) | 1,200 | 1,188,900 | ||||||
| Ardagh Packaging Finance PLC, 4.125%, 08/15/26 (#) | 1,200 | 1,227,000 | ||||||
| Ball Corp., 4.000%, 11/15/23 | 2,100 | 2,191,875 | ||||||
| Crown Americas LLC, 4.250%, 09/30/26 | 500 | 533,750 | ||||||
| Graphic Packaging International LLC, 3.500%, 03/15/28 (#) | 1,600 | 1,596,000 | ||||||
| Silgan Holdings, Inc., 4.125%, 02/01/28 | 100 | 102,125 | ||||||
| Smurfit Kappa Treasury Funding DAC, 7.500%, 11/20/25 | 750 | 920,625 | ||||||
| 7,760,275 | ||||||||
| Diversified Consumer Services | 0.7% | ||||||||
| Service Corp. International, 4.625%, 12/15/27 | 2,000 | 2,087,500 | ||||||
The accompanying notes are an integral part of these financial statements.
48 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| Diversified Financial Services | 1.2% | ||||||||
| Level 3 Financing, Inc.: | ||||||||
| 4.250%, 07/01/28 (#) | $ | 1,000 | $ | 990,000 | ||||
| 3.625%, 01/15/29 (#) | 1,000 | 950,000 | ||||||
| Suburban Propane Partners LP, 5.000%, 06/01/31 (#) | 1,750 | 1,769,688 | ||||||
| 3,709,688 | ||||||||
| Diversified Telecommunication Services | 2.3% | ||||||||
| Connect Finco SARL, 6.750%, 10/01/26 (#) | 1,500 | 1,573,125 | ||||||
| Hughes Satellite Systems Corp., 5.250%, 08/01/26 | 2,091 | 2,287,031 | ||||||
| Lumen Technologies, Inc., 4.000%, 02/15/27 (#) | 1,100 | 1,116,005 | ||||||
| Zayo Group Holdings, Inc., 4.000%, 03/01/27 (#) | 2,000 | 1,971,540 | ||||||
| 6,947,701 | ||||||||
| Electric Utilities | 0.5% | ||||||||
| NRG Energy, Inc., 3.625%, 02/15/31 (#) | 1,500 | 1,462,500 | ||||||
| Electrical Equipment | 1.6% | ||||||||
| Rackspace Technology Global, Inc., 3.500%, 02/15/28 (#) | 2,000 | 1,903,940 | ||||||
| Sensata Technologies, Inc.: | ||||||||
| 4.375%, 02/15/30 (#) | 1,100 | 1,155,000 | ||||||
| 3.750%, 02/15/31 (#) | 250 | 249,112 | ||||||
| Vistra Operations Co. LLC, 4.375%, 05/01/29 (#) | 1,500 | 1,502,445 | ||||||
| 4,810,497 | ||||||||
| Energy Equipment & Services | 0.1% | ||||||||
| DCP Midstream Operating LP, 3.250%, 02/15/32 | 250 | 251,875 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 49
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| Entertainment | 1.4% | ||||||||
| Live Nation Entertainment, Inc.: | ||||||||
| 4.875%, 11/01/24 (#) | $ | 1,550 | $ | 1,565,500 | ||||
| 3.750%, 01/15/28 (#) | 500 | 496,250 | ||||||
| Netflix, Inc., 4.375%, 11/15/26 | 500 | 553,750 | ||||||
| WMG Acquisition Corp., 3.000%, 02/15/31 (#) | 1,800 | 1,723,500 | ||||||
| 4,339,000 | ||||||||
| Equity Real Estate Investment Trusts (REITs) | 3.3% | ||||||||
| HAT Holdings I LLC, 3.375%, 06/15/26 (#) | 1,500 | 1,515,000 | ||||||
| Iron Mountain, Inc.: | ||||||||
| 4.875%, 09/15/29 (#) | 500 | 517,490 | ||||||
| 4.500%, 02/15/31 (#) | 1,250 | 1,263,362 | ||||||
| MGM Growth Properties Operating Partnership LP, 4.500%, 09/01/26 | 1,800 | 1,935,000 | ||||||
| Park Intermediate Holdings LLC, 4.875%, 05/15/29 (#) | 1,500 | 1,533,750 | ||||||
| RHP Hotel Properties LP, 4.500%, 02/15/29 (#) | 1,750 | 1,750,000 | ||||||
| VICI Properties LP, 4.250%, 12/01/26 (#) | 1,500 | 1,562,205 | ||||||
| 10,076,807 | ||||||||
| Food & Staples Retailing | 2.5% | ||||||||
| Albertsons Cos, Inc., 3.500%, 03/15/29 (#) | 1,500 | 1,502,940 | ||||||
| Kraft Heinz Foods Co., 4.250%, 03/01/31 | 2,350 | 2,672,232 | ||||||
| Performance Food Group, Inc., 4.250%, 08/01/29 (#) | 1,800 | 1,785,708 | ||||||
| US Foods, Inc., 4.625%, 06/01/30 (#) | 1,500 | 1,516,725 | ||||||
| 7,477,605 | ||||||||
The accompanying notes are an integral part of these financial statements.
50 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| Food Products | 2.4% | ||||||||
| B&G Foods, Inc., 5.250%, 04/01/25 | $ | 1,500 | $ | 1,532,070 | ||||
| Lamb Weston Holdings, Inc., 4.125%, 01/31/30 (#) | 2,000 | 2,052,380 | ||||||
| Post Holdings, Inc., 4.500%, 09/15/31 (#) | 2,000 | 1,985,000 | ||||||
| TreeHouse Foods, Inc., 4.000%, 09/01/28 | 1,750 | 1,680,000 | ||||||
| 7,249,450 | ||||||||
| Gas Utilities | 0.6% | ||||||||
| AmeriGas Partners LP, 5.625%, 05/20/24 | 1,550 | 1,675,814 | ||||||
| Health Care Equipment & Supplies | 2.3% | ||||||||
| Avantor Funding, Inc., 3.875%, 11/01/29 (#) | 1,500 | 1,516,365 | ||||||
| Hill-Rom Holdings, Inc., 4.375%, 09/15/27 (#) | 1,800 | 1,881,000 | ||||||
| Hologic, Inc., 4.625%, 02/01/28 (#) | 2,000 | 2,100,000 | ||||||
| Mozart Debt Merger Sub, Inc., 3.875%, 04/01/29 (#) | 1,500 | 1,494,705 | ||||||
| 6,992,070 | ||||||||
| Health Care Providers & Services | 5.4% | ||||||||
| Centene Corp., 3.375%, 02/15/30 | 1,500 | 1,527,585 | ||||||
| DaVita, Inc., 4.625%, 06/01/30 (#) | 2,000 | 2,047,500 | ||||||
| Encompass Health Corp.: | ||||||||
| 5.125%, 03/15/23 | 517 | 517,000 | ||||||
| 4.625%, 04/01/31 | 1,849 | 1,881,357 | ||||||
| HCA, Inc., 3.500%, 09/01/30 | 2,000 | 2,113,750 | ||||||
| Legacy LifePoint Health LLC, 4.375%, 02/15/27 (#) | 1,250 | 1,259,375 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 51
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| Molina Healthcare, Inc., 3.875%, 05/15/32 (#) | $ | 1,750 | $ | 1,760,937 | ||||
| PRA Health Sciences, Inc., 2.875%, 07/15/26 (#) | 200 | 200,250 | ||||||
| Tenet Healthcare Corp.: | ||||||||
| 4.625%, 07/15/24 | 309 | 312,863 | ||||||
| 4.875%, 01/01/26 (#) | 1,000 | 1,027,130 | ||||||
| 4.375%, 01/15/30 (#) | 1,500 | 1,519,598 | ||||||
| Teva Pharmaceutical Finance Netherlands III BV, 7.125%, 01/31/25 | 1,900 | 2,033,000 | ||||||
| 16,200,345 | ||||||||
| Hotels, Restaurants & Leisure | 7.8% | ||||||||
| 1011778 BC ULC, 3.875%, 01/15/28 (#) | 2,100 | 2,126,796 | ||||||
| Boyd Gaming Corp.: | ||||||||
| 4.750%, 12/01/27 | 850 | 867,000 | ||||||
| 4.750%, 06/15/31 (#) | 250 | 255,000 | ||||||
| Brinker International, Inc., 5.000%, 10/01/24 (#) | 2,000 | 2,130,000 | ||||||
| Cedar Fair LP, 5.375%, 04/15/27 | 1,550 | 1,588,750 | ||||||
| Golden Nugget, Inc., 6.750%, 10/15/24 (#) | 1,622 | 1,622,000 | ||||||
| Hilton Domestic Operating Co., Inc., 3.625%, 02/15/32 (#) | 2,000 | 1,989,480 | ||||||
| International Game Technology PLC, 4.125%, 04/15/26 (#) | 1,500 | 1,545,105 | ||||||
| MGM Resorts International, 4.625%, 09/01/26 | 800 | 832,000 | ||||||
| Scientific Games International, Inc., 5.000%, 10/15/25 (#) | 1,750 | 1,801,625 | ||||||
| Six Flags Entertainment Corp., 4.875%, 07/31/24 (#) | 1,850 | 1,868,500 | ||||||
| Station Casinos LLC, 4.625%, 12/01/31 (#) | 1,750 | 1,764,350 | ||||||
The accompanying notes are an integral part of these financial statements.
52 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| Travel + Leisure Co., 4.500%, 12/01/29 (#) | $ | 1,500 | $ | 1,512,728 | ||||
| Wynn Las Vegas LLC, 5.500%, 03/01/25 (#) | 2,000 | 2,060,000 | ||||||
| Yum! Brands, Inc., 4.625%, 01/31/32 | 1,500 | 1,593,930 | ||||||
| 23,557,264 | ||||||||
| Household Durables | 0.3% | ||||||||
| Tempur Sealy International, Inc., 4.000%, 04/15/29 (#) | 1,000 | 1,017,500 | ||||||
| Household Products | 1.0% | ||||||||
| Energizer Holdings, Inc., 4.750%, 06/15/28 (#) | 1,200 | 1,225,500 | ||||||
| Spectrum Brands, Inc., 5.750%, 07/15/25 | 1,800 | 1,838,250 | ||||||
| 3,063,750 | ||||||||
| Independent Power & Renewable Electricity Producers | 1.1% | ||||||||
| Calpine Corp., 4.500%, 02/15/28 (#) | 1,500 | 1,556,250 | ||||||
| NextEra Energy Operating Partners LP, 4.500%, 09/15/27 (#) | 1,750 | 1,890,000 | ||||||
| 3,446,250 | ||||||||
| Interactive Media & Services | 0.9% | ||||||||
| Twitter, Inc., 3.875%, 12/15/27 (#) | 1,250 | 1,302,663 | ||||||
| Ziff Davis, Inc., 4.625%, 10/15/30 (#) | 1,500 | 1,538,460 | ||||||
| 2,841,123 | ||||||||
| IT Services | 0.5% | ||||||||
| Block, Inc., 3.500%, 06/01/31 (#) | 1,450 | 1,486,250 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 53
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| Machinery | 2.1% | ||||||||
| Allison Transmission, Inc., 4.750%, 10/01/27 (#) | $ | 1,795 | $ | 1,869,493 | ||||
| Amsted Industries, Inc.: | ||||||||
| 5.625%, 07/01/27 (#) | 750 | 780,000 | ||||||
| 4.625%, 05/15/30 (#) | 1,000 | 1,025,000 | ||||||
| Terex Corp., 5.000%, 05/15/29 (#) | 1,000 | 1,027,500 | ||||||
| Vertiv Group Corp., 4.125%, 11/15/28 (#) | 1,750 | 1,767,500 | ||||||
| 6,469,493 | ||||||||
| Media | 10.3% | ||||||||
| AMC Networks, Inc., 4.250%, 02/15/29 | 1,000 | 993,750 | ||||||
| CCO Holdings LLC: | ||||||||
| 5.125%, 05/01/27 (#) | 500 | 515,000 | ||||||
| 4.750%, 03/01/30 (#) | 1,500 | 1,560,000 | ||||||
| Clear Channel Worldwide Holdings, Inc., 5.125%, 08/15/27 (#) | 2,000 | 2,069,520 | ||||||
| CSC Holdings LLC: | ||||||||
| 7.500%, 04/01/28 (#) | 1,690 | 1,812,525 | ||||||
| 4.500%, 11/15/31 (#) | 1,000 | 987,500 | ||||||
| DISH DBS Corp.: | ||||||||
| 5.250%, 12/01/26 (#) | 1,000 | 1,015,785 | ||||||
| 5.750%, 12/01/28 (#) | 750 | 757,500 | ||||||
| Entercom Media Corp., 6.750%, 03/31/29 (#) | 1,500 | 1,465,447 | ||||||
| GCI LLC, 4.750%, 10/15/28 (#) | 250 | 256,563 | ||||||
| Gray Escrow II, Inc., 5.375%, 11/15/31 (#) | 1,000 | 1,028,750 | ||||||
| Lamar Media Corp., 3.625%, 01/15/31 | 1,500 | 1,460,700 | ||||||
| Nexstar Media, Inc., 5.625%, 07/15/27 (#) | 1,500 | 1,581,180 | ||||||
The accompanying notes are an integral part of these financial statements.
54 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| Outfront Media Capital LLC, 5.000%, 08/15/27 (#) | $ | 2,300 | $ | 2,353,544 | ||||
| Scripps Escrow II, Inc., 3.875%, 01/15/29 (#) | 1,500 | 1,498,125 | ||||||
| Sinclair Television Group, Inc.: | ||||||||
| 5.125%, 02/15/27 (#) | 1,750 | 1,697,500 | ||||||
| 4.125%, 12/01/30 (#) | 1,000 | 947,500 | ||||||
| Sirius XM Radio, Inc.: | ||||||||
| 5.000%, 08/01/27 (#) | 1,750 | 1,818,845 | ||||||
| 3.875%, 09/01/31 (#) | 1,000 | 980,450 | ||||||
| TEGNA, Inc., 5.000%, 09/15/29 | 1,750 | 1,789,375 | ||||||
| Univision Communications, Inc., 5.125%, 02/15/25 (#) | 2,000 | 2,020,000 | ||||||
| Videotron, Ltd., 5.125%, 04/15/27 (#) | 500 | 515,000 | ||||||
| Virgin Media Secured Finance PLC, 4.500%, 08/15/30 (#) | 2,000 | 2,012,620 | ||||||
| 31,137,179 | ||||||||
| Metals & Mining | 3.0% | ||||||||
| Anglo American Capital PLC, 4.875%, 05/14/25 (#) | 1,650 | 1,798,292 | ||||||
| FMG Resources August 2006 Pty, Ltd., 4.500%, 09/15/27 (#) | 1,750 | 1,863,750 | ||||||
| Freeport-McMoRan, Inc., 4.550%, 11/14/24 | 2,200 | 2,357,300 | ||||||
| Novelis Corp., 4.750%, 01/30/30 (#) | 1,500 | 1,576,875 | ||||||
| Steel Dynamics, Inc., 5.000%, 12/15/26 | 1,550 | 1,593,332 | ||||||
| 9,189,549 | ||||||||
| Mortgage Real Estate Investment Trusts (REITs) | 0.6% | ||||||||
| Starwood Property Trust, Inc., 3.625%, 07/15/26 (#) | 1,743 | 1,734,285 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 55
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| Oil, Gas & Consumable Fuels | 6.8% | ||||||||
| Buckeye Partners LP, 4.500%, 03/01/28 (#) | $ | 1,500 | $ | 1,511,250 | ||||
| DT Midstream, Inc., 4.375%, 06/15/31 (#) | 1,350 | 1,404,000 | ||||||
| Energy Transfer LP, 5.875%, 01/15/24 | 750 | 807,204 | ||||||
| EQT Corp., 3.625%, 05/15/31 (#) | 1,750 | 1,815,625 | ||||||
| Hess Midstream Operations LP, 4.250%, 02/15/30 (#) | 1,850 | 1,836,125 | ||||||
| Holly Energy Partners LP, 5.000%, 02/01/28 (#) | 1,000 | 996,250 | ||||||
| Murphy Oil Corp., 6.875%, 08/15/24 | 670 | 683,802 | ||||||
| Occidental Petroleum Corp., 3.400%, 04/15/26 | 1,750 | 1,794,940 | ||||||
| Ovintiv Exploration, Inc., 5.625%, 07/01/24 | 1,600 | 1,761,250 | ||||||
| Range Resources Corp., 5.000%, 08/15/22 | 950 | 960,688 | ||||||
| Southwestern Energy Co.: | ||||||||
| 6.450%, 01/23/25 | 1,800 | 1,978,200 | ||||||
| 4.750%, 02/01/32 | 250 | 263,276 | ||||||
| Sunoco LP, 4.500%, 04/30/30 (#) | 2,000 | 2,049,830 | ||||||
| Tallgrass Energy Partners LP, 5.500%, 01/15/28 (#) | 1,250 | 1,239,062 | ||||||
| Targa Resources Partners LP, 4.000%, 01/15/32 (#) | 1,500 | 1,567,500 | ||||||
| 20,669,002 | ||||||||
| Pharmaceuticals | 0.5% | ||||||||
| Bausch Health Cos., Inc.: | ||||||||
| 5.000%, 02/15/29 (#) | 1,500 | 1,323,750 | ||||||
| 5.250%, 02/15/31 (#) | 100 | 87,875 | ||||||
| 1,411,625 | ||||||||
The accompanying notes are an integral part of these financial statements.
56 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| Professional Services | 1.2% | ||||||||
| IHS Markit, Ltd., 5.000%, 11/01/22 (#) | $ | 1,500 | $ | 1,542,750 | ||||
| Nielsen Finance LLC: | ||||||||
| 5.625%, 10/01/28 (#) | 1,000 | 1,032,500 | ||||||
| 5.875%, 10/01/30 (#) | 1,000 | 1,055,840 | ||||||
| 3,631,090 | ||||||||
| Software | 1.7% | ||||||||
| Clarivate Science Holdings Corp., 3.875%, 07/01/28 (#) | 1,200 | 1,206,000 | ||||||
| Crowdstrike Holdings, Inc., 3.000%, 02/15/29 | 1,500 | 1,481,250 | ||||||
| NCR Corp., 5.750%, 09/01/27 (#) | 1,000 | 1,045,000 | ||||||
| Nuance Communications, Inc., 5.625%, 12/15/26 | 1,500 | 1,547,490 | ||||||
| 5,279,740 | ||||||||
| Specialty Retail | 2.4% | ||||||||
| Asbury Automotive Group, Inc.: | ||||||||
| 4.500%, 03/01/28 | 987 | 1,006,740 | ||||||
| 5.000%, 02/15/32 (#) | 750 | 778,275 | ||||||
| Group 1 Automotive, Inc., 4.000%, 08/15/28 (#) | 1,000 | 996,250 | ||||||
| Penske Automotive Group, Inc., 3.750%, 06/15/29 | 1,750 | 1,734,687 | ||||||
| QVC, Inc., 4.750%, 02/15/27 | 1,250 | 1,285,325 | ||||||
| The Gap, Inc., 3.625%, 10/01/29 (#) | 1,500 | 1,483,650 | ||||||
| 7,284,927 | ||||||||
| Technology Hardware, Storage & Peripherals | 1.4% | ||||||||
| Seagate HDD Cayman, 4.091%, 06/01/29 | 2,083 | 2,151,885 | ||||||
| Western Digital Corp., 4.750%, 02/15/26 | 2,000 | 2,186,880 | ||||||
| 4,338,765 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 57
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (continued) | ||||||||
| Textiles, Apparel & Luxury Goods | 0.6% | ||||||||
| Hanesbrands, Inc., 4.625%, 05/15/24 (#) | $ | 1,750 | $ | 1,832,495 | ||||
| Trading Companies & Distributors | 2.8% | ||||||||
| American Builders & Contractors Supply Co., Inc., 4.000%, 01/15/28 (#) | 1,100 | 1,125,553 | ||||||
| Avis Budget Car Rental LLC, 5.750%, 07/15/27 (#) | 1,500 | 1,556,250 | ||||||
| Herc Holdings, Inc., 5.500%, 07/15/27 (#) | 1,500 | 1,560,000 | ||||||
| Standard Industries, Inc., 3.375%, 01/15/31 (#) | 2,000 | 1,926,580 | ||||||
| United Rentals North America, Inc.: | ||||||||
| 5.500%, 05/15/27 | 1,000 | 1,040,000 | ||||||
| 3.875%, 11/15/27 | 1,100 | 1,141,426 | ||||||
| 8,349,809 | ||||||||
| Wireless Telecommunication Services | 0.9% | ||||||||
| Sprint Corp., 7.125%, 06/15/24 | 500 | 561,328 | ||||||
| T-Mobile USA, Inc., 3.500%, 04/15/31 | 2,000 | 2,080,760 | ||||||
| 2,642,088 | ||||||||
| Total Corporate Bonds (Cost $262,299,959) | 267,792,185 | |||||||
The accompanying notes are an integral part of these financial statements.
58 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Corporate Income Portfolio (concluded) | ||||||||
| Exchange-Traded Funds | 7.8% | ||||||||
| Invesco Fundamental High Yield Corporate Bond ETF (Cost $23,042,937) | 1,222,805 | $ | 23,746,873 | |||||
| Short-Term Investments | 2.8% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $8,345,006) | 8,345,006 | 8,345,006 | ||||||
| Total Investments | 99.0% (Cost $293,687,902) | $ | 299,884,064 | ||||||
| Cash and Other Assets in Excess of Liabilities | 1.0% | 3,058,910 | |||||||
| Net Assets | 100.0% | $ | 302,942,974 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 59
The accompanying notes are an integral part of these financial statements.
60 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Short Duration Fixed Income Portfolio (concluded) | ||||||||
| US Government Securities | 0.6% | ||||||||
| Mortgage-Backed Securities | 0.6% | ||||||||
| Federal National Mortgage Association: Pool# FM1033, 4.500%, 01/01/27 (Cost $422,429) | $ | 407 | $ | 423,996 | ||||
| US Treasury Securities | 86.7% | ||||||||
| U.S. Treasury Notes: | ||||||||
| 1.875%, 10/31/22 | 8,785 | 8,894,469 | ||||||
| 2.000%, 11/30/22 | 14,590 | 14,801,441 | ||||||
| 0.125%, 01/31/23 | 12,940 | 12,895,519 | ||||||
| 1.625%, 04/30/23 | 27,725 | 28,124,630 | ||||||
| 0.375%, 10/31/23 | 4,050 | 4,026,111 | ||||||
| Total US Treasury Securities (Cost $68,919,430) | 68,742,170 | |||||||
| Description | Shares | Fair Value | ||||||
| Short-Term Investments | 0.5% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $414,670) | 414,670 | $ | 414,670 | |||||
| Total Investments | 99.8% (Cost $79,209,542) | $ | 79,088,386 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.2% | 181,217 | |||||||
| Net Assets | 100.0% | $ | 79,269,603 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 61
The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2021
| (§) | Variable and floating rate securities are securities for which interest rate changes are based on changes in a designated base rate. The rates shown are those in effect on December 31, 2021. |
| (¶) | Date shown is the next perpetual call date. |
| (#) | Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2021, these securities amounted to the percentage of net assets for each Portfolio was as follows: |
| Portfolio | Percentage of Net Assets |
|||||
| Emerging Markets Debt | 6.4 | % | ||||
| Global Fixed Income | 1.7 | % | ||||
| U.S. Corporate Income | 60.6 | % | ||||
| (Ø) | Step up bonds are securities which increase the interest payment rate at a specified point in time. Rate shown reflects rate in effect at December 31, 2021 which may step up at a future date. |
| («) | Issue in default. |
| (») | The portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts. |
Security Abbreviations:
| BBSW | — | Bank Bill Swap Reference Rate | |||
| CDOR | — | Canadian Dollar Offered Rate | |||
| CMT | — | Constant Maturity Treasury | |||
| EURIBOR | — | Euro Interbank Offered Rate | |||
| LIBOR | — | London Interbank Offered Rate | |||
| NTN-F | — | Brazil Sovereign “Nota do Tesouro Nacional” Series F | |||
| SOFR | — | Secured Overnight Financing Rate | |||
| SONIA | — | Sterling Overnight Index Average | |||
| Currency Abbreviations: | |||||
| AUD | — | Australian Dollar | MXN | — | Mexican New Peso |
| BRL | — | Brazilian Real | MYR | — | Malaysian Ringgit |
| CAD | — | Canadian Dollar | NOK | — | Norwegian Krone |
| CHF | — | Swiss Franc | NZD | — | New Zealand Dollar |
| CLP | — | Chilean Peso | PEN | — | Peruvian Nuevo Sol |
| CNH | — | Chinese Yuan Renminbi | IDR | — | Indonesian Rupiah |
| CNY | — | Chinese Yuan | PLN | — | Polish Zloty |
| COP | — | Colombian Peso | RON | — | New Romanian Leu |
| CZK | — | Czech Koruna | RUB | — | Russian Ruble |
| EGP | — | Egyptian pound | SEK | — | Swedish Krona |
| EUR | — | Euro | SGD | — | Singapore Dollar |
| GBP | — | British Pound Sterling | THB | — | Thai Baht |
| HUF | — | Hungarian Forint | TRY | — | New Turkish Lira |
| IDR | — | Indonesian Rupiah | UAH | — | Ukrainian Hryvnia |
| INR | — | Indian Rupee | USD | — | United States Dollar |
| JPY | — | Japanese Yen | UYU | — | Uruguyan Peso |
| KRW | — | South Korean Won | ZAR | — | South African Rand |
| Counterparty Abbreviations: | |||||
| BOA | — | Bank of America NA | MSC | — | Morgan Stanley & Co. |
| BRC | — | Barclays Bank PLC | SCB | — | Standard Chartered Bank |
| CIT | — | Citibank NA | SSB | — | State Street Bank and Trust Co. |
| HSB | — | HSBC Bank USA NA | UBS | — | UBS AG |
| JPM | — | JPMorgan Chase Bank NA | |||
The accompanying notes are an integral part of these financial statements.
62 Annual Report
Portfolio holdings by industry (as a percentage of net assets), for the Portfolio previously presented by country:
| Industry† | Lazard Emerging Markets Debt Portfolio | Lazard Global Fixed Income Portfolio | ||||||||
| Corporate & Quasi Government Bonds | ||||||||||
| Automobiles | — | % | 2.1 | % | ||||||
| Banks | 1.5 | 8.7 | ||||||||
| Beverages | — | 1.0 | ||||||||
| Building Products | — | 0.6 | ||||||||
| Capital Markets | — | 3.2 | ||||||||
| Commercial Services & Suppliers | — | 0.5 | ||||||||
| Consumer Finance | — | 0.8 | ||||||||
| Containers & Packaging | — | 0.6 | ||||||||
| Diversified Consumer Services | — | 0.7 | ||||||||
| Diversified Telecommunication Services | — | 1.3 | ||||||||
| Electrical Equipment | — | 1.2 | ||||||||
| Electronic Equipment, Instruments & Components | — | 0.1 | ||||||||
| Equity Real Estate Investment Trusts (REITs) | — | 1.1 | ||||||||
| Food & Staples Retailing | — | 1.6 | ||||||||
| Health Care Providers & Services | — | 0.5 | ||||||||
| Hotels, Restaurants & Leisure | — | 1.6 | ||||||||
| Household Products | — | 1.2 | ||||||||
| Interactive Media & Services | — | 1.1 | ||||||||
| Internet & Direct Marketing Retail | — | 0.6 | ||||||||
| IT Services | — | 0.5 | ||||||||
| Machinery | — | 1.8 | ||||||||
| Oil, Gas & Consumable Fuels | 1.3 | — | ||||||||
| Pharmaceuticals | — | 1.1 | ||||||||
| Software | — | 1.5 | ||||||||
| Specialty Retail | — | 1.0 | ||||||||
| Technology Hardware, Storage & Peripherals | — | 2.0 | ||||||||
| Trading Companies & Distributors | — | 0.7 | ||||||||
| Transportation Infrastructure | 1.0 | — | ||||||||
| Subtotal | 3.8 | 37.1 | ||||||||
| Foreign Government Obligations | 87.0 | 49.0 | ||||||||
| Supranational Bonds | 0.1 | 10.1 | ||||||||
| US Municipal Bonds | — | 1.2 | ||||||||
| US Treasury Securities | — | 1.0 | ||||||||
| Short-Term Investments | 7.0 | 0.5 | ||||||||
| Total Investments | 97.9 | % | 98.9 | % | ||||||
| † | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
Annual Report 63
The Lazard Funds, Inc. Statements of Assets and Liabilities
| December 31, 2021 | Lazard Emerging Markets Debt Portfolio | Lazard Global Fixed Income Portfolio | |||||||
| ASSETS | |||||||||
| Investments in securities, at fair value | $ | 19,877,021 | $ | 8,414,594 | |||||
| Foreign currency, at fair value | 277,843 | 15,071 | |||||||
| Receivables for: | |||||||||
| Dividends and interest | 283,810 | 80,738 | |||||||
| Capital stock sold | 5,715 | 3 | |||||||
| Amount due from Investment Manager (Note 3) | — | 10,540 | |||||||
| Gross unrealized appreciation on forward currency contracts | 56,306 | 95,349 | |||||||
| Total assets | 20,500,695 | 8,616,295 | |||||||
| LIABILITIES | |||||||||
| Due to custodian | 42 | — | |||||||
| Payables for: | |||||||||
| Management fees | 9,781 | — | |||||||
| Accrued custodian fees | 48,768 | 21,295 | |||||||
| Accrued professional services | 32,846 | 26,064 | |||||||
| Accrued distribution fees | 88 | 8 | |||||||
| Accrued registration fees | 16,011 | 39 | |||||||
| Accrued directors’ fees | — | 4 | |||||||
| Capital stock redeemed | 4,693 | 99 | |||||||
| Dividends | 4,361 | — | |||||||
| Gross unrealized depreciation on forward currency contracts | 80,225 | 59,082 | |||||||
| Other accrued expenses and payables | 7,805 | 4,176 | |||||||
| Total liabilities | 204,620 | 110,767 | |||||||
| Net assets | $ | 20,296,075 | $ | 8,505,528 | |||||
| NET ASSETS | |||||||||
| Paid in capital | $ | 61,225,907 | $ | 8,874,856 | |||||
| Distributable earnings (Accumulated loss) | (40,929,832 | ) | (369,328 | ) | |||||
| Net assets | $ | 20,296,075 | $ | 8,505,528 | |||||
The accompanying notes are an integral part of these financial statements.
64 Annual Report
| Lazard US Corporate Income Portfolio | Lazard US Short Duration Fixed Income Portfolio | ||||||
| $ | 299,884,064 | $ | 79,088,386 | ||||
| — | — | ||||||
| 3,330,421 | 229,167 | ||||||
| 18,819 | — | ||||||
| — | 13,584 | ||||||
| — | — | ||||||
| 303,233,304 | 79,331,137 | ||||||
| 9,245 | — | ||||||
| 123,104 | — | ||||||
| 43,788 | 14,926 | ||||||
| 28,159 | 25,445 | ||||||
| 761 | 6 | ||||||
| 341 | 15,511 | ||||||
| — | — | ||||||
| 49,907 | — | ||||||
| 24,288 | 3 | ||||||
| — | — | ||||||
| 10,737 | 5,643 | ||||||
| 290,330 | 61,534 | ||||||
| $ | 302,942,974 | $ | 79,269,603 | ||||
| $ | 305,322,953 | $ | 79,569,299 | ||||
| (2,379,979 | ) | (299,696 | ) | ||||
| $ | 302,942,974 | $ | 79,269,603 | ||||
Annual Report 65
| December 31, 2021 | Lazard Emerging Markets Debt Portfolio | Lazard Global Fixed Income Portfolio | |||||||
| Institutional Shares | |||||||||
| Net assets | $ | 19,910,838 | $ | 8,472,958 | |||||
| Shares of capital stock outstanding* | 1,370,241 | 999,178 | |||||||
| Net asset value, offering and redemption price per share | $ | 14.53 | $ | 8.48 | |||||
| Open Shares | |||||||||
| Net assets | $ | 384,081 | $ | 32,570 | |||||
| Shares of capital stock outstanding* | 26,157 | 3,828 | |||||||
| Net asset value, offering and redemption price per share | $ | 14.68 | $ | 8.51 | |||||
| R6 Shares | |||||||||
| Net assets | $ | 1,156 | — | ||||||
| Shares of capital stock outstanding* | 74 | † | — | ||||||
| Net asset value, offering and redemption price per share* | $ | 15.56 | — | ||||||
| Cost of investments in securities | $ | 21,263,843 | $ | 8,732,825 | |||||
| Cost of foreign currency | $ | 283,390 | $ | 15,139 | |||||
| * | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
| † | Shares values are rounded for presentation purposes. |
The accompanying notes are an integral part of these financial statements.
66 Annual Report
| Lazard US Corporate Income Portfolio | Lazard US Short Duration Fixed Income Portfolio | ||||||
| $ | 299,518,461 | $ | 79,247,171 | ||||
| 15,258,202 | 8,058,991 | ||||||
| $ | 19.63 | $ | 9.83 | ||||
| $ | 3,423,272 | $ | 22,432 | ||||
| 173,575 | 2,279 | ||||||
| $ | 19.72 | $ | 9.84 | ||||
| $ | 1,241 | — | |||||
| 63 | † | — | |||||
| $ | 19.69 | — | |||||
| $ | 293,687,902 | $ | 79,209,542 | ||||
| $ | — | $ | — | ||||
Annual Report 67
The Lazard Funds, Inc. Statements of Operations
| For the Year Ended December 31, 2021 | Lazard Emerging Markets Debt Portfolio | Lazard Global Fixed Income Portfolio | |||||||
| Investment Income (Loss) | |||||||||
| Income | |||||||||
| Interest | $ | 1,004,177 | $ | 190,592 | |||||
| Dividends | — | — | |||||||
| Total investment income* | 1,004,177 | 190,592 | |||||||
| Expenses | |||||||||
| Management fees (Note 3) | 148,747 | 45,813 | |||||||
| Custodian fees | 102,139 | 47,856 | |||||||
| Professional services | 47,055 | 41,702 | |||||||
| Administration fees | 27,656 | 23,145 | |||||||
| Registration fees | 53,275 | 36,971 | |||||||
| Shareholders’ services | 10,252 | 8,870 | |||||||
| Directors’ fees and expenses | 2,976 | 5,444 | |||||||
| Shareholders’ reports | 2,614 | 7,439 | |||||||
| Distribution fees (Open Shares) | 977 | 103 | |||||||
| Other^ | 296 | 1,718 | |||||||
| Total gross expenses | 395,987 | 219,061 | |||||||
| Management fees waived and expenses reimbursed | (214,529 | ) | (154,651 | ) | |||||
| Total net expenses | 181,458 | 64,410 | |||||||
| Net investment income (loss) | 822,719 | 126,182 | |||||||
| Net Realized and Unrealized Gain (Loss) | |||||||||
| Net realized gain (loss) on: | |||||||||
| Investments** | (36,989 | ) | 200,802 | ||||||
| Foreign currency transactions | (20,491 | ) | (6,080 | ) | |||||
| Forward currency contracts | (102,060 | ) | (208,832 | ) | |||||
| Futures contracts | (14,950 | ) | — | ||||||
| Swap agreements | (43,680 | ) | — | ||||||
| Total net realized gain (loss) | (218,170 | ) | (14,110 | ) | |||||
| Net change in unrealized appreciation (depreciation) on: | |||||||||
| Investments† | (1,813,793 | ) | (914,173 | ) | |||||
| Foreign currency translations | (21,206 | ) | (2,917 | ) | |||||
| Forward currency contracts | (67,229 | ) | 82,012 | ||||||
| Swap agreements | (5,736 | ) | — | ||||||
| Total net change in unrealized appreciation (depreciation) | (1,907,964 | ) | (835,078 | ) | |||||
| Net realized and unrealized gain (loss) | (2,126,134 | ) | (849,188 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | $ | (1,303,415 | ) | $ | (723,006 | ) | |||
| * Net of foreign withholding taxes of | $ | 15,027 | $ | 274 | |||||
| ** Net of foreign capital gains taxes of | $ | 5,693 | $ | — | |||||
| † Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of | $ | 13,803 | $ | — | |||||
| ^ Includes interest on line of credit of | $ | — | $ | 57 | |||||
The accompanying notes are an integral part of these financial statements.
68 Annual Report
| Lazard US Corporate Income Portfolio | Lazard US Short Duration Fixed Income Portfolio | ||||||
| $ | 11,884,189 | $ | 484,070 | ||||
| 800,204 | — | ||||||
| 12,684,393 | 484,070 | ||||||
| 1,666,230 | 207,303 | ||||||
| 101,537 | 32,842 | ||||||
| 64,297 | 47,804 | ||||||
| 62,869 | 32,365 | ||||||
| 37,488 | 47,948 | ||||||
| 21,488 | 12,035 | ||||||
| 18,145 | 8,544 | ||||||
| 16,647 | 9,491 | ||||||
| 9,319 | 64 | ||||||
| 14,099 | 4,646 | ||||||
| 2,012,119 | 403,042 | ||||||
| (332,904 | ) | (102,867 | ) | ||||
| 1,679,215 | 300,175 | ||||||
| 11,005,178 | 183,895 | ||||||
| 719,953 | 228,109 | ||||||
| — | — | ||||||
| — | — | ||||||
| — | — | ||||||
| — | — | ||||||
| 719,953 | 228,109 | ||||||
| (3,278,734 | ) | (745,938 | ) | ||||
| — | — | ||||||
| — | — | ||||||
| — | — | ||||||
| (3,278,734 | ) | (745,938 | ) | ||||
| (2,558,781 | ) | (517,829 | ) | ||||
| $ | 8,446,397 | $ | (333,934 | ) | |||
| $ | — | $ | — | ||||
| $ | — | $ | — | ||||
| $ | — | $ | — | ||||
| $ | — | $ | — | ||||
Annual Report 69
The Lazard Funds, Inc. Statements of Changes in Net Assets
| Lazard Emerging Markets Debt Portfolio | |||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 822,719 | $ | 1,721,818 | |||||
| Net realized gain (loss) | (218,170 | ) | (3,495,212 | ) | |||||
| Net change in unrealized appreciation (depreciation) | (1,907,964 | ) | (1,397,976 | ) | |||||
| Net increase (decrease) in net assets resulting from operations | (1,303,415 | ) | (3,171,370 | ) | |||||
| Distributions to shareholders (Note 2(g)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (266,178 | ) | — | ||||||
| Open Shares | (4,732 | ) | — | ||||||
| R6 Shares | (16 | ) | — | ||||||
| Return of capital | |||||||||
| Institutional Shares | (533,368 | ) | (1,538,228 | ) | |||||
| Open Shares | (9,482 | ) | (14,630 | ) | |||||
| R6 Shares | (33 | ) | (41 | ) | |||||
| Net decrease in net assets resulting from distributions | (813,809 | ) | (1,552,899 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 2,366,868 | 6,071,916 | |||||||
| Open Shares | 24,820 | 138,222 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 766,007 | 1,412,389 | |||||||
| Open Shares | 12,197 | 12,838 | |||||||
| R6 Shares | 49 | 41 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (3,023,406 | ) | (71,755,710 | ) | |||||
| Open Shares | (11,890 | ) | (268,240 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | 134,645 | (64,388,544 | ) | ||||||
| Total increase (decrease) in net assets | (1,982,579 | ) | (69,112,813 | ) | |||||
| Net assets at beginning of period | 22,278,654 | 91,391,467 | |||||||
| Net assets at end of period | $ | 20,296,075 | $ | 22,278,654 | |||||
The accompanying notes are an integral part of these financial statements.
70 Annual Report
| Lazard Global Fixed Income Portfolio | Lazard US Corporate Income Portfolio | |||||||||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||
| $ | 126,182 | $ | 126,368 | $ | 11,005,178 | $ | 12,080,958 | |||||||||
| (14,110 | ) | 323,617 | 719,953 | (1,161,985 | ) | |||||||||||
| (835,078 | ) | 430,612 | (3,278,734 | ) | 2,196,558 | |||||||||||
| (723,006 | ) | 880,597 | 8,446,397 | 13,115,531 | ||||||||||||
| (368,209 | ) | (309,020 | ) | (11,000,996 | ) | (12,087,050 | ) | |||||||||
| (1,362 | ) | (1,683 | ) | (127,773 | ) | (150,720 | ) | |||||||||
| — | — | (45 | ) | (47 | ) | |||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| (369,571 | ) | (310,703 | ) | (11,128,814 | ) | (12,237,817 | ) | |||||||||
| 2,233,371 | 5,232,553 | 29,161,114 | 45,657,501 | |||||||||||||
| 54,481 | 6,239 | 279,336 | 1,472,978 | |||||||||||||
| 368,163 | 308,584 | 10,709,114 | 11,769,610 | |||||||||||||
| 1,362 | 1,683 | 104,457 | 115,990 | |||||||||||||
| — | — | 45 | 47 | |||||||||||||
| (2,539,178 | ) | (3,065,810 | ) | (36,335,702 | ) | (56,900,578 | ) | |||||||||
| (66,257 | ) | (21,740 | ) | (662,564 | ) | (2,013,457 | ) | |||||||||
| 51,942 | 2,461,509 | 3,255,800 | 102,091 | |||||||||||||
| (1,040,635 | ) | 3,031,403 | 573,383 | 979,805 | ||||||||||||
| 9,546,163 | 6,514,760 | 302,369,591 | 301,389,786 | |||||||||||||
| $ | 8,505,528 | $ | 9,546,163 | $ | 302,942,974 | $ | 302,369,591 | |||||||||
Annual Report 71
| Lazard Emerging Markets Debt Portfolio | |||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 1,364,341 | 5,641,531 | * | ||||||
| Shares sold | 153,783 | 427,424 | * | ||||||
| Shares issued to shareholders from reinvestment of distributions | 50,324 | 94,410 | * | ||||||
| Shares redeemed | (198,207 | ) | (4,799,024 | )* | |||||
| Net increase (decrease) | 5,900 | (4,277,190 | )* | ||||||
| Shares outstanding at end of period | 1,370,241 | 1,364,341 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 24,524 | 32,702 | * | ||||||
| Shares sold | 1,610 | 9,412 | * | ||||||
| Shares issued to shareholders from reinvestment of distributions | 793 | 859 | * | ||||||
| Shares redeemed | (770 | ) | (18,449 | )* | |||||
| Net increase (decrease) | 1,633 | (8,178 | )* | ||||||
| Shares outstanding at end of period | 26,157 | 24,524 | |||||||
| R6 Shares | |||||||||
| Shares outstanding at beginning of period | 71 | 69 | * | ||||||
| Shares issued to shareholders from reinvestment of distributions | 3 | 2 | * | ||||||
| Net increase (decrease) | 3 | 2 | * | ||||||
| Shares outstanding at end of period | 74 | 71 | |||||||
| * | Shares and share transactions of Lazard Emerging Markets Debt Portfolio were adjusted to reflect a 1:2 reverse share split and of Lazard US Corporate Income Portfolio were adjusted to reflect a 1:4 reverse share split, effective November 17, 2020. |
The accompanying notes are an integral part of these financial statements.
72 Annual Report
| Lazard Global Fixed Income Portfolio | Lazard US Corporate Income Portfolio | |||||||||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||
| 989,793 | 710,971 | 15,080,446 | 15,103,284 | * | ||||||||||||
| 245,212 | 577,637 | 1,480,230 | 2,383,359 | * | ||||||||||||
| 41,364 | 32,641 | 544,180 | 617,982 | * | ||||||||||||
| (277,191 | ) | (331,456 | ) | (1,846,654 | ) | (3,024,179 | )* | |||||||||
| 9,385 | 278,822 | 177,756 | (22,838 | )* | ||||||||||||
| 999,178 | 989,793 | 15,258,202 | 15,080,446 | |||||||||||||
| 5,032 | 6,518 | 187,617 | 210,905 | * | ||||||||||||
| 5,704 | 684 | 14,131 | 75,398 | * | ||||||||||||
| 153 | 178 | 5,283 | 6,070 | * | ||||||||||||
| (7,061 | ) | (2,348 | ) | (33,456 | ) | (104,756 | )* | |||||||||
| (1,204 | ) | (1,486 | ) | (14,042 | ) | (23,288 | )* | |||||||||
| 3,828 | 5,032 | 173,575 | 187,617 | |||||||||||||
| — | — | 61 | 58 | * | ||||||||||||
| — | — | 2 | 3 | * | ||||||||||||
| — | — | 2 | 3 | * | ||||||||||||
| — | — | 63 | 61 | |||||||||||||
Annual Report 73
| Lazard US Short Duration Fixed Income Portfolio | |||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 183,895 | $ | 1,153,865 | |||||
| Net realized gain (loss) | 228,109 | 720,754 | |||||||
| Net change in unrealized appreciation (depreciation) | (745,938 | ) | 455,774 | ||||||
| Net increase (decrease) in net assets resulting from operations | (333,934 | ) | 2,330,393 | ||||||
| Distributions to shareholders (Note 2(g)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (183,904 | ) | (1,153,515 | ) | |||||
| Open Shares | (29 | ) | (282 | ) | |||||
| Net decrease in net assets resulting from distributions | (183,933 | ) | (1,153,797 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 6,528,316 | 25,806,667 | |||||||
| Open Shares | 4,339 | 56,978 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 167,563 | 1,072,523 | |||||||
| Open Shares | 27 | 273 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (14,676,561 | ) | (36,405,739 | ) | |||||
| Open Shares | (11,122 | ) | (43,603 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | (7,987,438 | ) | (9,512,901 | ) | |||||
| Total increase (decrease) in net assets | (8,505,305 | ) | (8,336,305 | ) | |||||
| Net assets at beginning of period | 87,774,908 | 96,111,213 | |||||||
| Net assets at end of period | $ | 79,269,603 | $ | 87,774,908 | |||||
The accompanying notes are an integral part of these financial statements.
74 Annual Report
| Lazard US Short Duration Fixed Income Portfolio | |||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 8,867,736 | 9,832,361 | |||||||
| Shares sold | 661,464 | 2,607,117 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 16,960 | 108,370 | |||||||
| Shares redeemed | (1,487,169 | ) | (3,680,112 | ) | |||||
| Net increase (decrease) | (808,745 | ) | (964,625 | ) | |||||
| Shares outstanding at end of period | 8,058,991 | 8,867,736 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 2,964 | 1,587 | |||||||
| Shares sold | 439 | 5,762 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 3 | 28 | |||||||
| Shares redeemed | (1,127 | ) | (4,413 | ) | |||||
| Net increase (decrease) | (685 | ) | 1,377 | ||||||
| Shares outstanding at end of period | 2,279 | 2,964 | |||||||
Annual Report 75
The Lazard Funds, Inc. Financial Highlights
LAZARD EMERGING MARKETS DEBT PORTFOLIO
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/21 | 12/31/20* | 12/31/19 | * | 12/31/18 | * | 12/31/17* | ||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 16.04 | $ | 16.10 | $ | 14.72 | $ | 16.86 | $ | 15.80 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.59 | 0.64 | 0.80 | 0.92 | 0.92 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (1.51 | ) | (0.18 | ) | 1.36 | (2.14 | ) | 1.06 | |||||||||||||
| Total from investment operations | (0.92 | ) | 0.46 | 2.16 | (1.22 | ) | 1.98 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.20 | ) | — | (0.38 | ) | (0.44 | ) | (0.86 | ) | ||||||||||||
| Return of capital | (0.39 | ) | (0.52 | ) | (0.40 | ) | (0.48 | ) | (0.06 | ) | |||||||||||
| Total distributions | (0.59 | ) | (0.52 | ) | (0.78 | ) | (0.92 | ) | (0.92 | ) | |||||||||||
| Net asset value, end of period | $ | 14.53 | $ | 16.04 | $ | 16.10 | $ | 14.72 | $ | 16.86 | |||||||||||
| Total Return (b) | –5.86 | % | 3.19 | % | 15.03 | % | –7.45 | % | 12.69 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 19,911 | $ | 21,880 | $ | 90,858 | $ | 143,015 | $ | 280,808 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.85 | % | 0.92 | % | 0.98 | % | 0.93 | % | 0.93 | % | |||||||||||
| Gross expenses | 1.83 | % | 1.57 | % | 1.08 | % | 0.93 | % | 0.93 | % | |||||||||||
| Net investment income (loss) | 3.88 | % | 4.24 | % | 5.15 | % | 5.78 | % | 5.52 | % | |||||||||||
| Portfolio turnover rate | 81 | % | 133 | % | 106 | % | 97 | % | 88 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
76 Annual Report
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/21 | 12/31/20* | 12/31/19 | * | 12/31/18 | * | 12/31/17 | * | |||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 16.21 | $ | 16.26 | $ | 14.86 | $ | 17.00 | $ | 15.96 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.57 | 0.61 | 0.78 | 0.94 | 0.88 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (1.54 | ) | (0.15 | ) | 1.38 | (2.20 | ) | 1.02 | |||||||||||||
| Total from investment operations | (0.97 | ) | 0.46 | 2.16 | (1.26 | ) | 1.90 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.19 | ) | — | (0.38 | ) | (0.40 | ) | (0.80 | ) | ||||||||||||
| Return of capital | (0.37 | ) | (0.51 | ) | (0.38 | ) | (0.48 | ) | (0.06 | ) | |||||||||||
| Total distributions | (0.56 | ) | (0.51 | ) | (0.76 | ) | (0.88 | ) | (0.86 | ) | |||||||||||
| Net asset value, end of period | $ | 14.68 | $ | 16.21 | $ | 16.26 | $ | 14.86 | $ | 17.00 | |||||||||||
| Total Return (b) | –6.07 | % | 3.11 | % | 14.85 | % | –7.59 | % | 12.16 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 384 | $ | 397 | $ | 532 | $ | 670 | $ | 6,520 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.05 | % | 1.02 | % | 1.18 | % | 1.20 | % | 1.22 | % | |||||||||||
| Gross expenses | 2.84 | % | 2.59 | % | 2.91 | % | 1.62 | % | 1.36 | % | |||||||||||
| Net investment income (loss) | 3.68 | % | 4.05 | % | 4.91 | % | 5.49 | % | 5.21 | % | |||||||||||
| Portfolio turnover rate | 81 | % | 133 | % | 106 | % | 97 | % | 88 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 77
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/21 | 12/31/20 | * | 12/31/19 | * | 12/31/18 | * | 12/31/17 | * | ||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 17.19 | $ | 17.28 | $ | 15.76 | $ | 17.76 | $ | 15.80 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.67 | 0.41 | 0.86 | 0.96 | 0.90 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (1.63 | ) | 0.09 | 1.50 | (2.24 | ) | 1.08 | ||||||||||||||
| Total from investment operations | (0.96 | ) | 0.50 | 2.36 | (1.28 | ) | 1.98 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.22 | ) | — | (0.40 | ) | (0.22 | ) | (0.02 | ) | ||||||||||||
| Return of capital | (0.45 | ) | (0.59 | ) | (0.44 | ) | (0.50 | ) | — | (c) | |||||||||||
| Total distributions | (0.67 | ) | (0.59 | ) | (0.84 | ) | (0.72 | ) | (0.02 | ) | |||||||||||
| Net asset value, end of period | $ | 15.56 | $ | 17.19 | $ | 17.28 | $ | 15.76 | $ | 17.76 | |||||||||||
| Total Return (b) | –5.67 | % | 3.30 | % | 15.22 | % | –7.24 | % | 12.61 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 1 | $ | 1 | $ | 1 | $ | 99,952 | $ | 1 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.80 | % | 0.86 | % | 0.93 | % | 0.90 | % | 0.90 | % | |||||||||||
| Gross expenses | 245.32 | % | 265.72 | % | 1.09 | % | 0.94 | % | 43.88 | % | |||||||||||
| Net investment income (loss) | 4.06 | % | 2.60 | % | 5.18 | % | 5.97 | % | 5.71 | % | |||||||||||
| Portfolio turnover rate | 81 | % | 133 | % | 106 | % | 97 | % | 88 | % | |||||||||||
| * | On November 17, 2020, the portfolio effected a 1:2 reverse share split. All per share data prior to November 17, 2020 has been adjusted to reflect the reverse share split. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
| (c) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
78 Annual Report
LAZARD GLOBAL FIXED INCOME PORTFOLIO
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.60 | $ | 9.08 | $ | 8.65 | $ | 9.04 | $ | 8.57 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.12 | 0.14 | 0.19 | 0.20 | 0.20 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (0.87 | ) | 0.72 | 0.43 | (0.38 | ) | 0.47 | ||||||||||||||
| Total from investment operations | (0.75 | ) | 0.86 | 0.62 | (0.18 | ) | 0.67 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.26 | ) | (0.15 | ) | (0.06 | ) | (0.10 | ) | — | ||||||||||||
| Net realized gains | (0.11 | ) | (0.19 | ) | — | — | — | ||||||||||||||
| Return of capital | — | — | (0.13 | ) | (0.11 | ) | (0.20 | ) | |||||||||||||
| Total distributions | (0.37 | ) | (0.34 | ) | (0.19 | ) | (0.21 | ) | (0.20 | ) | |||||||||||
| Net asset value, end of period | $ | 8.48 | $ | 9.60 | $ | 9.08 | $ | 8.65 | $ | 9.04 | |||||||||||
| Total Return (b) | –7.95 | % | 9.51 | % | 7.25 | % | –2.06 | % | 7.87 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 8,473 | $ | 9,498 | $ | 6,456 | $ | 5,495 | $ | 4,705 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.72 | % | |||||||||||
| Gross expenses | 2.34 | % | 2.73 | % | 3.51 | % | 3.61 | % | 4.39 | % | |||||||||||
| Net investment income (loss) | 1.38 | % | 1.53 | % | 2.14 | % | 2.33 | % | 2.23 | % | |||||||||||
| Portfolio turnover rate | 59 | % | 65 | % | 65 | % | 60 | % | 42 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 79
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.60 | $ | 9.08 | $ | 8.65 | $ | 9.04 | $ | 8.57 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.10 | 0.12 | 0.17 | 0.18 | 0.17 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (0.87 | ) | 0.71 | 0.43 | (0.39 | ) | 0.47 | ||||||||||||||
| Total from investment operations | (0.77 | ) | 0.83 | 0.60 | (0.21 | ) | 0.64 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.21 | ) | (0.12 | ) | (0.06 | ) | (0.08 | ) | — | ||||||||||||
| Net realized gains | (0.11 | ) | (0.19 | ) | — | — | — | ||||||||||||||
| Return of capital | — | — | (0.11 | ) | (0.10 | ) | (0.17 | ) | |||||||||||||
| Total distributions | (0.32 | ) | (0.31 | ) | (0.17 | ) | (0.18 | ) | (0.17 | ) | |||||||||||
| Net asset value, end of period | $ | 8.51 | $ | 9.60 | $ | 9.08 | $ | 8.65 | $ | 9.04 | |||||||||||
| Total Return (b) | –8.13 | % | 9.23 | % | 6.98 | % | –2.31 | % | 7.55 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 33 | $ | 48 | $ | 59 | $ | 33 | $ | 34 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.95 | % | 0.95 | % | 0.95 | % | 0.98 | % | 1.02 | % | |||||||||||
| Gross expenses | 12.84 | % | 10.32 | % | 27.52 | % | 38.42 | % | 42.88 | % | |||||||||||
| Net investment income (loss) | 1.12 | % | 1.31 | % | 1.88 | % | 2.08 | % | 1.95 | % | |||||||||||
| Portfolio turnover rate | 59 | % | 65 | % | 65 | % | 60 | % | 42 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
80 Annual Report
LAZARD US CORPORATE INCOME PORTFOLIO
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/21 | 12/31/20 | * | 12/31/19 | * | 12/31/18 | * | 12/31/17 | * | ||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 19.80 | $ | 19.68 | $ | 18.16 | $ | 19.56 | $ | 19.48 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.72 | 0.80 | 0.88 | 0.88 | 0.88 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (0.17 | ) | 0.13 | 1.52 | (1.40 | ) | 0.08 | ||||||||||||||
| Total from investment operations | 0.55 | 0.93 | 2.40 | (0.52 | ) | 0.96 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.72 | ) | (0.81 | ) | (0.88 | ) | (0.88 | ) | (0.88 | ) | |||||||||||
| Total distributions | (0.72 | ) | (0.81 | ) | (0.88 | ) | (0.88 | ) | (0.88 | ) | |||||||||||
| Net asset value, end of period | $ | 19.63 | $ | 19.80 | $ | 19.68 | $ | 18.16 | $ | 19.56 | |||||||||||
| Total Return (b) | 2.86 | % | 4.96 | % | 13.34 | % | –2.73 | % | 5.09 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 299,518 | $ | 298,636 | $ | 297,219 | $ | 308,285 | $ | 344,508 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | |||||||||||
| Gross expenses | 0.66 | % | 0.67 | % | 0.67 | % | 0.64 | % | 0.67 | % | |||||||||||
| Net investment income (loss) | 3.64 | % | 4.17 | % | 4.47 | % | 4.65 | % | 4.57 | % | |||||||||||
| Portfolio turnover rate | 30 | % | 26 | % | 21 | % | 16 | % | 21 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 81
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/21 | 12/31/20 | * | 12/31/19 | * | 12/31/18 | * | 12/31/17 | * | ||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 19.90 | $ | 19.76 | $ | 18.28 | $ | 19.64 | $ | 19.56 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.67 | 0.75 | 0.80 | 0.84 | 0.84 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (0.17 | ) | 0.15 | 1.48 | (1.36 | ) | 0.08 | ||||||||||||||
| Total from investment operations | 0.50 | 0.90 | 2.28 | (0.52 | ) | 0.92 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.68 | ) | (0.76 | ) | (0.80 | ) | (0.84 | ) | (0.84 | ) | |||||||||||
| Total distributions | (0.68 | ) | (0.76 | ) | (0.80 | ) | (0.84 | ) | (0.84 | ) | |||||||||||
| Net asset value, end of period | $ | 19.72 | $ | 19.90 | $ | 19.76 | $ | 18.28 | $ | 19.64 | |||||||||||
| Total Return (b) | 2.55 | % | 4.80 | % | 12.74 | % | –2.78 | % | 4.77 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 3,423 | $ | 3,733 | $ | 4,170 | $ | 4,314 | $ | 5,708 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.80 | % | 0.80 | % | 0.83 | % | 0.85 | % | 0.85 | % | |||||||||||
| Gross expenses | 1.00 | % | 1.03 | % | 1.19 | % | 1.11 | % | 1.13 | % | |||||||||||
| Net investment income (loss) | 3.39 | % | 3.94 | % | 4.18 | % | 4.34 | % | 4.28 | % | |||||||||||
| Portfolio turnover rate | 30 | % | 26 | % | 21 | % | 16 | % | 21 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
82 Annual Report
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/21 | 12/31/20 | * | 12/31/19 | * | 12/31/18 | * | 12/31/17 | * | ||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 19.88 | $ | 19.76 | $ | 18.68 | $ | 19.56 | $ | 19.48 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.73 | 0.81 | 0.92 | 0.92 | 0.88 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (0.18 | ) | 0.11 | 1.04 | (1.40 | ) | 0.08 | ||||||||||||||
| Total from investment operations | 0.55 | 0.92 | 1.96 | (0.48 | ) | 0.96 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.74 | ) | (0.80 | ) | (0.88 | ) | (0.40 | ) | (0.88 | ) | |||||||||||
| Total distributions | (0.74 | ) | (0.80 | ) | (0.88 | ) | (0.40 | ) | (0.88 | ) | |||||||||||
| Net asset value, end of period | $ | 19.69 | $ | 19.88 | $ | 19.76 | $ | 18.68 | $ | 19.56 | |||||||||||
| Total Return (b) | 2.80 | % | 4.89 | % | 10.67 | % | –2.43% | (c) | 5.09 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1,783 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | |||||||||||
| Gross expenses | 231.95 | % | 256.05 | % | 858.55 | % | 4.62 | % | 1.69 | % | |||||||||||
| Net investment income (loss) | 3.66 | % | 4.22 | % | 4.55 | % | 4.61 | % | 4.58 | % | |||||||||||
| Portfolio turnover rate | 30 | % | 26 | % | 21 | % | 16 | % | 21 | % | |||||||||||
| * | On November 17, 2020, the Portfolio effected a 1:4 reverse share split. All per share data prior to November 17, 2020 has been adjusted to reflect the reverse share split. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Not Portfolio’s returns would have been lower. |
| (c) | The Portfolio received settlement proceeds from a foreign exchange trading class action lawsuit. The proceeds from the settlement represented a realized gain and were recorded in the period received. There was a 0.62% impact on the total return of the Portfolio’s R6 Shares. |
The accompanying notes are an integral part of these financial statements.
Annual Report 83
LAZARD US SHORT DURATION FIXED INCOME PORTFOLIO
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.89 | $ | 9.77 | $ | 9.70 | $ | 9.79 | $ | 9.86 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.02 | 0.12 | 0.21 | 0.19 | 0.14 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (0.06 | ) | 0.12 | 0.07 | (0.09 | ) | (0.07 | ) | |||||||||||||
| Total from investment operations | (0.04 | ) | 0.24 | 0.28 | 0.10 | 0.07 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.02 | ) | (0.12 | ) | (0.20 | ) | (0.17 | ) | (0.11 | ) | |||||||||||
| Return of capital | — | — | (0.01 | ) | (0.02 | ) | (0.03 | ) | |||||||||||||
| Total distributions | (0.02 | ) | (0.12 | ) | (0.21 | ) | (0.19 | ) | (0.14 | ) | |||||||||||
| Net asset value, end of period | $ | 9.83 | $ | 9.89 | $ | 9.77 | $ | 9.70 | $ | 9.79 | |||||||||||
| Total Return (b) | –0.39 | % | 2.46 | % | 2.93 | % | 1.08 | % | 0.72 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 79,247 | $ | 87,746 | $ | 96,096 | $ | 116,276 | $ | 100,390 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.36 | % | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | |||||||||||
| Gross expenses | 0.48 | % | 0.47 | % | 0.45 | % | 0.43 | % | 0.43 | % | |||||||||||
| Net investment income (loss) | 0.22 | % | 1.21 | % | 2.18 | % | 2.00 | % | 1.43 | % | |||||||||||
| Portfolio turnover rate | 100 | % | 97 | % | 175 | % | 170 | % | 108 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
84 Annual Report
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.90 | $ | 9.78 | $ | 9.71 | $ | 9.79 | $ | 9.87 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.01 | 0.09 | 0.19 | 0.16 | 0.11 | ||||||||||||||||
| Net realized and unrealized gain (loss) | (0.06 | ) | 0.12 | 0.06 | (0.08 | ) | (0.08 | ) | |||||||||||||
| Total from investment operations | (0.05 | ) | 0.21 | 0.25 | 0.08 | 0.03 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.01 | ) | (0.09 | ) | (0.17 | ) | (0.14 | ) | (0.09 | ) | |||||||||||
| Return of capital | — | — | (0.01 | ) | (0.02 | ) | (0.02 | ) | |||||||||||||
| Total distributions | (0.01 | ) | (0.09 | ) | (0.18 | ) | (0.16 | ) | (0.11 | ) | |||||||||||
| Net asset value, end of period | $ | 9.84 | $ | 9.90 | $ | 9.78 | $ | 9.71 | $ | 9.79 | |||||||||||
| Total Return (b) | –0.50 | % | 2.20 | % | 2.64 | % | 0.88 | % | 0.32 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 22 | $ | 29 | $ | 16 | $ | 37 | $ | 25 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.48 | % | 0.65 | % | 0.69 | % | 0.70 | % | 0.70 | % | |||||||||||
| Gross expenses | 18.10 | % | 14.74 | % | 51.53 | % | 38.00 | % | 33.88 | % | |||||||||||
| Net investment income (loss) | 0.12 | % | 0.96 | % | 1.91 | % | 1.68 | % | 1.13 | % | |||||||||||
| Portfolio turnover rate | 100 | % | 97 | % | 175 | % | 170 | % | 108 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
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The
Lazard Funds, Inc. Notes to Financial Statements December 31, 2021
1. Organization
The Lazard Funds, Inc. was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of December 31, 2021, the Fund was comprised of thirty no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of the Lazard Emerging Markets Debt Portfolio (“Emerging Markets Debt”), the Lazard Global Fixed Income Portfolio (“Global Fixed Income”), the Lazard US Corporate Income Portfolio (“US Corporate Income”), and the Lazard US Short Duration Fixed Income Portfolio (“US Short Duration Fixed Income”). The financial statements of the other twenty-six Portfolios are presented separately.
The Portfolios, other than the Emerging Markets Debt Portfolio, are operated as “diversified” funds, as defined in the 1940 Act.
Each Portfolio currently offers Institutional Shares and Open Shares, and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum investment requirements; eligibility requirements for R6 Shares; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Fund’s prospectus).
2. Significant Accounting Policies
The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in accordance with Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:
(a) Valuation of Investments—Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by independent pricing services which are based on, among other things, trading in securities with similar characteristics, brokers’ quotations and/or a matrix system which considers such factors as other security prices, yields and maturities. Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants,
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are valued at the last reported sales price (for US listed equity securities) or the closing price (for non-US listed equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the Nasdaq, the Nasdaq Official Closing Price. Over the counter swap agreements are valued by an independent pricing service and centrally cleared swaps are valued at the last reported sale on the clearing exchange. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s net asset value (“NAV”) per share.
Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trading on certain non-US securities exchanges or markets, such as those in Europe and Asia, ordinarily may be completed before the close of business on each business day in New York (i.e., a day on which the New York Stock Exchange (the “NYSE”) is open). In addition, securities trading in a particular non-US country or countries, may not take place on all business days in New York and on which the NAV of a Portfolio is calculated.
If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when a Portfolio’s NAV is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Fund’s Board of Directors (the “Board”). Certain non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of the Portfolio’s assets on days when Portfolio shareholders may not be able to buy or sell Portfolio shares.
The Valuation Committee of the Investment Manager, which is subject to the oversight of the Board, may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial
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institutions and relevant news events. Input from the Investment Manager’s portfolio management team also will be considered.
The effect of using fair value pricing is that the NAV of a Portfolio will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.
(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Interest income is accrued daily. A Portfolio amortizes premiums and accretes discounts on fixed-income securities using the effective yield method and mortgage-backed securities using the level yield method.
A Portfolio may be subject to taxes imposed by non-US countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized and/or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income earned or capital gains (realized and/or unrealized) from the applicable portfolio securities.
(c) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Fund are maintained in US dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.
The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments.
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A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Daily fluctuations in the value of forward currency contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, the Portfolio records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed. Net realized gain (loss) on foreign currency transactions and forward currency contracts represent net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency translations reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.
During the year ended December 31, 2021, the Emerging Markets Debt and Global Fixed Income Portfolios traded in forward currency contracts.
(d) Futures Contracts—Futures contracts are purchased or sold to gain exposure to, or manage exposure from, changes in the value of equity securities or foreign currencies and changes in interest rates.
Futures contracts are exchange-traded agreements between a Portfolio and a counter-party to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, a Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash collateral pledged for futures contracts in the Statement of Assets and Liabilities.
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Securities may be deposited as initial margin. If applicable, any cash deposited and held on margin is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, a Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as receivables (or payables) for variation margin on open futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount of the contract at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
During the year ended December 31, 2021, the Emerging Markets Debt traded in futures contracts.
(e) Options Transactions—Put and call options purchased are accounted for in the same manner as portfolio securities and other assets. Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. When a Portfolio writes an option, the premium received by the Portfolio is recorded as a liability and is subsequently adjusted to the current market value of the option written. When a Portfolio writes a call option, such option is typically “covered,” meaning that it holds the underlying instrument subject to being called by the option counterparty. When the Portfolio writes a put option, cash is segregated in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash collateral in the Statement of Assets and Liabilities. If a Portfolio writes an option, it bears the market risk of an unfavorable change in the price of the security underlying the written option. The risk of loss is unlimited for uncovered written call options. For uncovered written put options, the risk of loss is limited to the difference between the strike price of the option and the premiums received upon writing the option.
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During the year ended December 31, 2021, the Emerging Markets Debt Portfolio traded in options.
(f) Swap Agreements—Interest rate swap agreements involve the exchange by a Portfolio with another party of their respective commitments to pay or receive interest with respect to the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap,” (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor,” (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the counterparty may terminate the swap transaction in whole at zero cost by a predetermined date and time prior to the maturity date, (v) spread locks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different money markets. The change in value, if any, on swap agreements is recorded as unrealized appreciation (depreciation) on swap agreements in a Portfolio’s accompanying Statement of Assets and Liabilities. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreements in a Portfolio’s accompanying Statement of Operations, in addition to any realized gain (loss) recorded upon the termination of swap agreements.
Upon entering into a centrally cleared swap, the Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is shown as cash collateral for swaps in the Statement of Assets and Liabilities. On these transactions, the Portfolio agrees to receive from or pay to the broker variation margin. Variation margin is recorded as unrealized appreciation (depreciation)
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and shown as variation margin receivable (or payable) on swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statement of Operations.
During the year ended December 31, 2021, the Emerging Markets Debt Portfolio traded in swap agreements.
(g) Federal Income Taxes—The Fund’s policy is for each Portfolio to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.
At December 31, 2021, the following Portfolios had unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains with no expiration date as follows:
| Portfolio | Short-Term | Long-Term | ||||||
| Emerging Markets Debt | $ | 18,945,566 | $ | 19,545,754 | ||||
| US Corporate Income | 4,140,402 | 4,329,460 | ||||||
| US Short Duration Fixed Income | 36,430 | 124,436 | ||||||
During the year ended December 31, 2021, the following Portfolios utilized realized capital loss carryovers from previous years as follows:
| Portfolio | Amounts | |||
| US Corporate Income | $ | 495,418 | ||
| US Short Duration Fixed Income | 239,997 | |||
Under current tax law, post-October capital losses or certain late-year ordinary losses, as defined by the Code, within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the tax year ended December 31, 2021, the following Portfolio elected to defer such losses as follows:
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| Portfolio | Post October Capital Loss Deferral | Late Year Ordinary Loss Deferral | ||||||
| Emerging Markets Debt | $ | — | $ | 22,933 | ||||
| Global Fixed Income | 12,869 | 2,811 | ||||||
| US Short Duration Fixed Income | — | 1,758 | ||||||
For federal income tax purposes, the aggregate cost, aggregate gross unrealized appreciation, aggregate gross unrealized depreciation and the net unrealized appreciation (depreciation) were as follows:
| Portfolio | Aggregate Cost | Aggregate Gross Unrealized Appreciation | Aggregate Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
| Emerging Markets Debt | $ | 22,251,816 | $ | 376,645 | $ | 2,759,866 | $ | (2,383,221 | ) | |||||||
| Global Fixed Income | 8,761,509 | 100,817 | 447,272 | (346,455 | ) | |||||||||||
| US Corporate Income | 293,796,674 | 7,542,528 | 1,455,138 | 6,087,390 | ||||||||||||
| US Short Duration Fixed Income | 79,211,244 | 61,978 | 184,836 | (122,858 | ) | |||||||||||
Management has analyzed the Portfolios’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. Each Portfolio files a US federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
(h) Dividends and Distributions—For each Portfolio, income dividends are normally declared each business day and paid monthly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders, but may be distributed more frequently. Differences in per share distributions, by class, are generally due to differences in class specific expenses.
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Income and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency and fixed-income transactions, distribution redesignations, certain fixed-income securities and expenses, derivatives, wash sales, return of capital distributions, currency straddles and paydown gain/loss.
The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:
| Portfolio | Paid in Capital | Distributable Earnings (Accumulated Loss) | ||||||
| Emerging Markets Debt | $ | (542,884 | ) | $ | 542,884 | |||
| Global Fixed Income | (70,288 | ) | 70,288 | |||||
| US Short Duration Fixed Income | (20,568 | ) | 20,568 | |||||
The tax character of dividends and distributions paid during the years ended December 31, were as follows:
| Ordinary Income | Long-Term Capital Gain | ||||||||||||||||
| Portfolio | 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Emerging Markets Debt* | $ | 270,926 | $ | — | $ | — | $ | — | |||||||||
| Global Fixed Income | 235,392 | 227,749 | 134,179 | 82,954 | |||||||||||||
| US Corporate Income | 11,128,814 | 12,265,481 | — | — | |||||||||||||
| US Short Duration Fixed Income | 163,365 | 1,153,797 | — | — | |||||||||||||
| * | Emerging Markets Debt Portfolios had return of capital distributions of $542,883 in 2021 and $1,552,899 in 2020, respectively. |
At December 31, 2021, the components of distributable earnings (accumulated loss), on a tax basis, were as follows:
| Portfolio | Undistributed Ordinary Income (Deferred Ordinary Losses) | Undistributed Long-Term Capital Gain (Deferred Capital Losses) | Net Unrealized Appreciation (Depreciation) Including Foreign Currency | |||||||||
| Emerging Markets Debt | $ | (22,933 | ) | $ | (38,491,320 | ) | $ | (2,415,579 | ) | |||
| Global Fixed Income | (2,811 | ) | (12,869 | ) | (353,648 | ) | ||||||
| US Corporate Income | 2,493 | (8,469,862 | ) | 6,087,390 | ||||||||
| US Short Duration Fixed Income | (1,758 | ) | (160,866 | ) | (137,072 | ) | ||||||
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(i) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., and Lazard Global Total Return and Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios primarily on the basis of relative net assets. The Portfolios accrue distribution and service (12b-1) fees to Open Shares. Each Portfolio’s income, expenses (other than class specific expenses) and realized and unrealized gains and losses are allocated proportionally each day between its classes based upon the relative net assets of each class.
(j) Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates.
(k) Net Asset Value—The NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. The NAV per share of a class is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.
3. Investment Management, Administration, Custody, Distribution and Transfer Agency Agreements
The Fund, on behalf of the Portfolios, has entered into a management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager manages the investment operations of each Portfolio and
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the assets of each Portfolio including the purchase, retention and disposition thereof, in accordance with the Portfolio’s investment objectives, policies, and restrictions, and provides the Portfolios with administrative, operational and compliance assistance services. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:
| Portfolio | Annual Rate | |||
| Emerging Markets Debt | 0.70 | % | ||
| Global Fixed Income | 0.50 | |||
| US Corporate Income | 0.55 | |||
| US Short Duration Fixed Income | 0.25 | |||
The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse a Portfolio until April 30, 2022 (or such other date as indicated below) if the aggregate direct expenses of each Portfolio, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Fund” (as defined in Form N-1A), fees and expenses related to filing foreign tax reclaims and extraordinary expenses, exceed an applicable percentage of the value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name in the table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expenses.
| Portfolio | Institutional Shares | Open Shares | R6 Shares | |||||||||
| Emerging Markets Debt (a) | 0.85 | % | 1.05 | % | 0.80 | % | ||||||
| Global Fixed Income | 0.70 | 0.95 | N/A | |||||||||
| US Corporate Income (b) | 0.55 | 0.80 | 0.55 | |||||||||
| US Short Duration Fixed Income (c) | 0.40 | 0.65 | N/A | |||||||||
| (a) | From April 30, 2022 until April 30, 2031, the annual rates are 1.10%, 1.35%, and 1.05%, respectively. |
| (b) | This agreement will continue in effect until April 30, 2031 for the R6 Shares. |
| (c) | This agreement will continue in effect until April 30, 2031 for Open Shares. |
In addition, until April 30, 2022, to the extent the “Total Annual Fund Operating Expenses” (as used in Form N-1A) of the R6
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Shares of a Portfolio exceed the Total Annual Fund Operating Expenses of the Portfolio’s Institutional Shares (in each case, not including management fees, custodial fees or other expenses related to the management of the Portfolio’s assets), the Investment Manager will bear the expenses of the R6 Shares in the amount of such excess. Further, the Investment Manager will bear the daily expenses incurred in excess of any income produced for the US Short Duration Fixed Income Portfolio.
During the year ended December 31, 2021, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:
| Institutional Shares | Open Shares | ||||||||||||||||
| Portfolio | Management Fees Waived | Expenses Reimbursed | Management Fees Waived | Expenses Reimbursed | |||||||||||||
| Emerging Markets Debt | $ | 146,003 | $ | 58,613 | $ | 2,736 | $ | 4,266 | |||||||||
| Global Fixed Income | 45,607 | 104,139 | 206 | 4,699 | |||||||||||||
| US Corporate Income | 322,754 | — | 7,324 | — | |||||||||||||
| US Short Duration Fixed Income | 98,416 | — | 63 | 4,388 | |||||||||||||
| R6 Shares | |||||||||
| Portfolio | Management Fees Waived | Expenses Reimbursed | |||||||
| Emerging Markets Debt | $8 | $ | 2,903 | ||||||
| US Corporate Income | 7 | 2,819 | |||||||
The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.
State Street serves as the Fund’s custodian and provides the Fund with certain administrative services.
The Fund has a distribution agreement with Lazard Asset Management Securities LLC (the “Distributor”), a wholly-owned subsidiary of the Investment Manager, to serve as the distributor for shares of each Portfolio. The Distributor bears, amongst other expenses, the cost of preparing and distributing materials used by the Distributor in connection with its offering Portfolio shares and other advertising and promotional expenses.
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Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net assets of its Open Shares, for certain distribution activities and providing services to holders of the Portfolio’s Open Shares. The Distributor may make payments to third parties such as financial institutions, securities dealers and other industry professionals in respect of these services.
DST is the Fund’s transfer agent and dividend disbursing agent.
4. Directors’ Compensation
Certain Directors of the Fund are officers of the Investment Manager. For 2021, the annual compensation for, each Director who is not an affiliated person of the Investment Manager or any of its affiliates, that was paid by all of the funds in the Lazard Fund Complex was, as applicable: (1) an annual fee of $237,000, (2) an additional annual retainer of $33,700 to the lead Independent Director, and (3) an additional annual fee of $23,500 to the Audit Committee Chair. Effective January 2022, the annual compensation for each Director who is not an affiliated person of the Investment Manager or any of its affiliates is comprised of: (1) an annual retainer of $245,000, (2) an additional annual fee of $35,000 to the lead Independent Director, and (3) an additional annual fee of $25,000 to the Audit Committee Chair. The Independent Directors (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund) also may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings or incurred in connection with work performed on behalf of Board. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees and expenses are allocated among the active portfolios in the Lazard Fund Complex at a rate of $5,000 per active portfolio with the remainder allocated among the active portfolios on the basis of relative net assets. The Statements of Operations show the Independent Directors’ fees and expenses paid by each Portfolio.
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5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2021 were as follows:
| Portfolio | Purchases | Sales | ||||||
| Emerging Markets Debt | $ | 15,987,624 | $ | 15,379,339 | ||||
| Global Fixed Income | 5,073,994 | 4,906,055 | ||||||
| US Corporate Income | 99,405,660 | 87,294,636 | ||||||
| US Short Duration Fixed Income | 3,543,575 | 17,272,992 | ||||||
| US Government and Treasury Securities | ||||||||
| Portfolio | Purchases | Sales | ||||||
| Global Fixed Income | $ | 213,936 | $ | 410,279 | ||||
| US Short Duration Fixed Income | 78,915,130 | 70,397,981 | ||||||
For the year ended December 31, 2021, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.
6. Line of Credit
The Fund has a $100 million committed line of credit pursuant to an Amended and Restated Loan Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at 1.00% plus the “Applicable Rate,” which is the higher of (a) the Federal Funds Rate plus 10 basis points and (b) the Overnight Bank Funding Rate (OBFR) plus 10 basis points, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the year ended December 31, 2021, the following Portfolios had borrowings under the Agreement as follows:
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| Portfolio | Average Daily Loan Balance | * | Maximum Daily Loan Outstanding | Weighted Average Interest Rate | Number
of Days Borrowings were Outstanding | |||||||||||
| Global Fixed Income | $ | 88,420 | $ | 285,000 | 1.18 | % | 20 | |||||||||
| * | For days borrowings were outstanding. |
Management believes that the fair value of the liabilities under the Agreement is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with the Applicable Rate. A Portfolio’s outstanding balance under the Agreement, if any, would be categorized as Level 2.
7. Investment Risks
Not all risks described below apply to all Portfolios, or may not apply to the same degree for one or more Portfolios compared to one or more other Portfolios. In addition, not all risks applicable to an investment in a Portfolio are described below. Please see the current summary prospectus for the relevant Portfolio(s) or a current Portfolio prospectus for further information regarding a Portfolio’s investment strategy and related risks.
(a) Market Risk—A Portfolio may incur losses due to declines in one or more markets in which it invests. These declines may be the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s). To the extent that such developments impact specific industries, market sectors, countries or geographic regions, a Portfolio’s investments in such industries, market sectors, countries and/or geographic regions can be expected to be particularly affected, especially if such investments are a significant portion of its investment portfolio. 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 a Portfolio. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers worldwide. As a result, local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions or other events could have a significant negative
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impact on global economic and market conditions. The coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses taken by many governments or voluntarily imposed by private parties, including closing borders, restricting travel and imposing prolonged quarantines or similar restrictions, as well as the closure of, or operational changes to, many retail and other businesses, has had negative impacts, and in many cases severe negative impacts, on markets worldwide. It is not known how long the effects of such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may be expected to impact a Portfolio and its investments.
(b) Fixed-Income and Debt Securities Risk—The market value of a debt security may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The debt securities market can be susceptible to increases in volatility and decreases in liquidity. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.
Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity and increased redemptions, and, as a result, the Portfolio may have to liquidate portfolio securities at disadvantageous prices.
A Portfolio’s investments in lower-rated, higher-yielding securities (“junk bonds”) are subject to greater credit risk than its higher-rated investments. Credit risk is the risk that the issuer will not make interest or principal payments, or will not make payments on a timely basis. Non-investment grade securities tend to be more volatile, less liquid and are considered speculative. If there is a decline, or perceived decline, in the credit quality of a debt security (or any guarantor of payment on such security), the security’s
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value could fall, potentially lowering a Portfolio’s share price. The prices of non-investment grade securities, unlike investment grade debt securities, may fluctuate unpredictably and not necessarily inversely with changes in interest rates. The market for these securities may be less liquid and therefore these securities may be harder to value or sell at an acceptable price, especially during times of market volatility or decline.
Some debt securities may give the issuer the option to call, or redeem, the securities before their maturity, and during a time of declining interest rates, a Portfolio may have to reinvest the proceeds of called or redeemed securities in an investment offering a lower yield (and the Portfolio may not fully benefit from any increase in the value of its portfolio holdings as a result of declining interest rates).
Adjustable rate securities provide a Portfolio with a certain degree of protection against rises in interest rates or inflation rates, respectively, although adjustable rate securities will participate in any declines in interest rates and inflation-linked securities can also decline in value based on changes in the relevant periodic adjustment rate. Certain adjustable rate securities, such as those with interest rates that fluctuate directly or indirectly based on multiples of a stated index, are designed to be highly sensitive to changes in interest rates and can subject the holders thereof to extreme reductions of yield and possibly loss of principal. Certain fixed-income securities may be issued at a discount from their face value (such as zero coupon securities) or purchased at a price less than their stated face amount or at a price less than their issue price plus the portion of “original issue discount” previously accrued thereon, i.e., purchased at a “market discount.” The amount of original issue discount and/or market discount on certain obligations may be significant, and accretion of market discount together with original issue discount will cause a Portfolio to realize income prior to the receipt of cash payments with respect to these securities.
(c) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests.
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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.
(d) 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 and less liquid than more developed markets. These market conditions may continue or worsen. Investments in these countries may be subject to political, economic, legal, market and currency risks. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.
(e) 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. A Portfolio’s investments denominated in such currencies (particularly currencies of emerging markets countries), as well as any investments in currencies themselves, could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. Irrespective of any foreign currency exposure hedging, a Portfolio may experience a decline in the value of its portfolio securities, in US dollar terms, due solely to fluctuations in currency exchange rates.
(f) Derivatives and Hedging Risk—Derivatives transactions, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested. Swap agreements; forward currency contracts; structured products; over-
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the-counter options on currencies and swap agreements; and other over-the-counter derivatives transactions are subject to the risks of the creditworthiness of, and default, by the counterparty and consequently may lose all or a portion of their value due solely to the creditworthiness of, or default by, the counterparty. Over-the-counter derivatives frequently may be illiquid and difficult to value. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives. These derivatives transactions, as well as the exchange-traded futures and options in which a Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related reference asset, index or rate. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Purchasing options will reduce returns by the amount of premiums paid for options that are not exercised. In fact, many derivatives may be subject to greater risks than those associated with investing directly in the underlying or other reference asset. Derivatives transactions incur costs, either explicitly or implicitly, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of derivatives, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to predict correctly movements in the direction of the relevant reference asset or market and, for hedging activities, correlation of the derivative instruments used with the investments seeking to be hedged. Use of derivatives transactions, even if entered into for hedging purposes, may cause a Portfolio to experience losses greater than if the Portfolio had not engaged in such transactions. New SEC Rule 18f-4 under the 1940 Act, with which investment companies must comply beginning in August 2022, will regulate and, in some cases limit, the use of derivatives for certain Portfolios and may require a Portfolio to alter, perhaps materially, its use of derivatives.
(g) Structured Products Risk—Structured notes and other structured products are privately negotiated debt instruments where the principal and/or interest is determined by reference to a specified asset, market or rate, or the differential performance of two assets or markets. Structured products can have risks of both fixed-
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income securities and derivatives transactions. Derivatives transactions may increase volatility or reduce returns, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested, and they are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related reference asset, market or rate. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Use of derivatives transactions may cause a Portfolio to experience losses greater than if a Portfolio had not engaged in such transactions.
(h) Mortgage-Related and Asset-Backed Securities Risk—Mortgage-related securities are complex instruments, subject to both credit and prepayment risk, and may be more volatile and less liquid, and more difficult to price accurately, than more traditional debt securities. Mortgage-related securities generally are subject to credit risks associated with the performance of the underlying mortgage properties. Prepayment risk can lead to fluctuations in value of the mortgage-related security which may be pronounced. As with other interest-bearing securities, the prices of certain mortgage-related securities are inversely affected by changes in interest rates. However, although the value of a mortgage-related security may decline when interest rates rise, the converse is not necessarily true, since during periods of declining interest rates the mortgages underlying the security are more likely to be prepaid.
The risks of asset-backed securities are similar to those of mortgage-related securities. However, asset-backed securities present certain risks that are not presented by mortgage-related securities. Primarily, these securities may provide a Portfolio with a less effective security interest in the related collateral than do mortgage-related securities.
(i) Preferred Securities Risk—There are various risks associated with investing in preferred securities. In addition, unlike common stock, participation in the growth of an issuer may be limited.
| • | Credit risk is the risk that a security held by the Portfolio will decline in price or the issuer of the security will fail to make divi- |
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dend, interest or principal payments when due because the issuer experiences a decline in its financial status.
| • | Interest rate risk is the risk that securities will decline in value because of changes in market interest rates. When market interest rates rise, the market value of such securities generally will fall. |
| • | Preferred securities may include provisions that permit the issuer, at its discretion, to defer or omit distributions for a stated period without any adverse consequences to the issuer. |
| • | Preferred securities are generally subordinated to bonds and other debt instruments in an issuer’s capital structure in terms of having priority to corporate income, claims to corporate assets and liquidation payments, and therefore will be subject to greater credit risk than more senior debt instruments. |
| • | During periods of declining interest rates, an issuer may be able to exercise an option to call, or redeem its issue at par earlier than the scheduled maturity. If this occurs during a time of lower or declining interest rates, the Portfolio may have to reinvest the proceeds in lower yielding securities (and the Portfolio may not benefit from any increase in the value of its portfolio holdings as a result of declining interest rates). |
| • | Certain preferred securities may be substantially less liquid than many other securities, such as common stocks or US government securities. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by the Portfolio or at prices approximating the value at which the Portfolio is carrying the securities on its books. |
(j) Non-Diversification Risk—A Portfolio that is classified as “non-diversified” may be more vulnerable to changes in the market value of a single issuer or group of issuers and may be relatively more susceptible to adverse effects from any single corporate, industry, economic, market, political or regulatory occurrence than if the Portfolio’s investments consisted of securities issued by a larger number of issuers.
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(k) Government Securities Risk—Not all obligations of the US government, its agencies and instrumentalities are backed by the full faith and credit of the US Treasury. Some obligations are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer. Any guarantee by the US government or its agencies or instrumentalities of a security held by a Portfolio does not apply to the market value of such security or to shares of the Portfolio itself. A security backed by the US Treasury or the full faith and credit of the United States is guaranteed only as to the timely payment of interest and principal when held to maturity.
(l) Cybersecurity Risk—The Portfolios and their service providers are susceptible to operational and information security and related risks of cybersecurity incidents. Cybersecurity attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through “hacking” or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data or causing operational disruption. Cybersecurity incidents affecting the Investment Manager, transfer agent or custodian or other service providers such as financial intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, including by impediments to a Portfolio’s investment trading; the inability of Portfolio shareholders to purchase and redeem Portfolio shares; interference with a Portfolio’s ability to calculate its NAV; violations of applicable privacy, data security or other laws; regulatory fines and penalties; reputational damage; reimbursement or other compensation or remediation costs; legal fees; or additional compliance costs. Similar adverse consequences could result from cybersecurity incidents affecting issuers of securities in which a Portfolio invests; counterparties with which a Portfolio engages in transactions; governmental and other regulatory authorities, exchange and other financial market operators; and banks, brokers, dealers, insurance companies and other financial institutions and other parties. There are inherent limitations in any cybersecurity risk management systems or business continuity plans, including the possibility that certain risks have not been identified.
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8. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnification provisions. A Portfolio’s maximum exposure under these arrangements is unknown. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
9. Fair Value Measurements
Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below:
| • | Level 1 – unadjusted quoted prices in active markets for identical assets and liabilities |
| • | Level 2 – other significant observable inputs (including unadjusted quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of assets and liabilities) |
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Changes in valuation methodology or inputs may result in transfers into or out of the current assigned level within the hierarchy.
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.
The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2021:
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | |||||||||||||
| Emerging Markets Debt Portfolio | |||||||||||||||||
| Assets: | |||||||||||||||||
| Corporate Bonds* | $ | — | $ | 738,329 | $ | — | $ | 738,329 | |||||||||
| Foreign Government Obligations* | — | 17,666,648 | — | 17,666,648 | |||||||||||||
| Quasi Government Bonds* | — | 31,393 | — | 31,393 | |||||||||||||
| Supranational Bonds | — | 14,811 | — | 14,811 | |||||||||||||
| Short-Term Investments | 1,425,840 | — | — | 1,425,840 | |||||||||||||
| Other Financial Instruments† | |||||||||||||||||
| Forward Currency Contracts | — | 56,306 | — | 56,306 | |||||||||||||
| Total | $ | 1,425,840 | $ | 18,507,487 | $ | — | $ | 19,933,327 | |||||||||
| Liabilities: | |||||||||||||||||
| Other Financial Instruments† | |||||||||||||||||
| Forward Currency Contracts | $ | — | $ | (80,225 | ) | $ | — | $ | (80,225 | ) | |||||||
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| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | |||||||||||||
| Global Fixed Income Portfolio | |||||||||||||||||
| Assets: | |||||||||||||||||
| Corporate Bonds* | $ | — | $ | 3,032,145 | $ | — | $ | 3,032,145 | |||||||||
| Foreign Government Obligations* | — | 4,163,896 | — | 4,163,896 | |||||||||||||
| Quasi Government Bonds* | — | 132,078 | — | 132,078 | |||||||||||||
| Supranational Bonds | — | 858,151 | — | 858,151 | |||||||||||||
| US Municipal Bonds | — | 102,264 | — | 102,264 | |||||||||||||
| US Treasury Securities | — | 82,410 | — | 82,410 | |||||||||||||
| Short-Term Investments | 43,650 | — | — | 43,650 | |||||||||||||
| Other Financial Instruments† | |||||||||||||||||
| Forward Currency Contracts | — | 95,349 | — | 95,349 | |||||||||||||
| Total | $ | 43,650 | $ | 8,466,293 | $ | — | $ | 8,509,943 | |||||||||
| Liabilities: | |||||||||||||||||
| Other Financial Instruments† | |||||||||||||||||
| Forward Currency Contracts | $ | — | $ | (59,082 | ) | $ | — | $ | (59,082 | ) | |||||||
| US Corporate Income Portfolio | |||||||||||||||||
| Corporate Bonds* | $ | — | $ | 267,792,185 | $ | — | $ | 267,792,185 | |||||||||
| Exchange-Traded Funds | 23,746,873 | — | — | 23,746,873 | |||||||||||||
| Short-Term Investments | 8,345,006 | — | — | 8,345,006 | |||||||||||||
| Total | $ | 32,091,879 | $ | 267,792,185 | $ | — | $ | 299,884,064 | |||||||||
| US Short Duration Fixed Income Portfolio | |||||||||||||||||
| Asset-Backed Securities | $ | — | $ | 870,387 | $ | — | $ | 870,387 | |||||||||
| Corporate Bonds* | — | 8,637,163 | — | 8,637,163 | |||||||||||||
| US Government Securities | — | 423,996 | — | 423,996 | |||||||||||||
| US Treasury Securities | — | 68,742,170 | — | 68,742,170 | |||||||||||||
| Short-Term Investments | 414,670 | — | — | 414,670 | |||||||||||||
| Total | $ | 414,670 | $ | 78,673,716 | $ | — | $ | 79,088,386 | |||||||||
| * | Please refer to Portfolios of Investments and Notes to Portfolios of Investments for portfolio holdings by country and industry. |
| † | Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation). |
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10. Derivative Instruments
Certain portfolios may use derivative instruments, including forward currency contracts, options, futures contracts, or swap agreements.
Forward currency contracts may be used for hedging purposes or to seek to increase returns.
A Portfolio may enter into futures transactions to hedge against changes in interest rates, securities prices, and/or currency exchange rates, to increase total return, or to otherwise gain access or attain exposure to certain markets or other underliers.
A Portfolio enters into swap agreements in an attempt to obtain a particular exposure when it is considered desirable to do so, possibly at a lower cost to such Portfolio than if it had invested directly in the asset that yielded the desired exposure.
During the year ended December 31, 2021, the approximate average monthly notional exposure for derivative instruments was as follows:
| Derivative Instruments | Emerging Markets Debt Portfolio | Global Fixed Income Portfolio | ||||||
| Forward currency contracts: | ||||||||
| Average amounts purchased | $ | 5,000,000 | $ | 4,500,000 | ||||
| Average amounts sold | $ | 3,200,000 | $ | 3,600,000 | ||||
| Futures: | ||||||||
| Average notional value of contracts — short | $ | 1,100,000 | * | — | ||||
| * Represents average monthly notional exposure for the one month the derivative instrument was open during the period. | ||||||||
| Interest rate swap agreements: | ||||||||
| Average notional value — receives fixed rate on centrally cleared | $ | 300,000 | * | — | ||||
| * Represents average monthly notional exposure for the eleven months the derivative instrument was open during the period. | ||||||||
| Purchased Options: | ||||||||
| Average notional amount | $ | 1,100,000 | * | — | ||||
| * | Represents average monthly notional exposure for the two months the derivative instrument was open during the period. |
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The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2021:
Emerging Markets Debt Portfolio
| Assets – Derivative Financial Instruments | Total | |||||
| Forward currency contracts | Unrealized appreciation on forward currency contracts | $ | 56,306 | |||
| Liabilities — Derivative Financial Instruments | Total | |||||
| Forward currency contracts | Unrealized depreciation on forward currency contracts | $ | 80,225 | |||
Global Fixed Income Portfolio
| Assets – Derivative Financial Instruments | Total | |||||
| Forward currency contracts | Unrealized appreciation on forward currency contracts | $ | 95,349 | |||
| Liabilities — Derivative Financial Instruments | Total | |||||
| Forward currency contracts | Unrealized depreciation on forward currency contracts | $ | 59,082 | |||
Emerging Markets Debt Portfolio
The effect of derivative instruments on the Statement of Operations for the period ended December 31, 2021 was:
| Net Realized Gain (Loss) from: | Foreign Currency Contracts | Interest Rate Contracts | Total | ||||||||||
| Forward currency contracts | $ | (102,060 | ) | $ | — | $ | (102,060 | ) | |||||
| Futures | — | (14,950 | ) | (14,950 | ) | ||||||||
| Purchased Options | (4,395 | ) | — | (4,395 | ) | ||||||||
| Swap agreements | — | (43,680 | ) | (43,680 | ) | ||||||||
| Total | $ | (106,455 | ) | $ | (58,630 | ) | $ | (165,085 | ) | ||||
| Net Change in Unrealized Appreciation (Depreciation) on: | Foreign Currency Contracts | Interest Rate Contracts | Total | ||||||||||
| Forward currency contracts | $ | (67,229 | ) | $ | — | $ | (67,229 | ) | |||||
| Swap agreements | — | (5,736 | ) | (5,736 | ) | ||||||||
| Total | $ | (67,229 | ) | $ | (5,736 | ) | $ | (72,965 | ) | ||||
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Global Fixed Income Portfolio
The effect of derivative instruments on the Statement of Operations for the period ended December 31, 2021 was:
| Net Realized Gain (Loss) from: | Total | |||
| Forward currency contracts | $ | (208,832 | ) | |
| Net Change in Unrealized Appreciation (Depreciation) on: | ||||
| Forward currency contracts | $ | 82,012 | ||
As of December 31, 2021, the Emerging Markets Debt and Global Fixed Income Portfolios held derivative instruments that are eligible for offset in their Statements of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through a single payment in the event of default on, or termination of, any one contract.
The required information for the affected Portfolios is presented in the below table, as of December 31, 2021:
Emerging Markets Debt Portfolio
| Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities |
||||||||||
| Forward Currency Contracts | $ | 56,306 | $ | — | $ | 56,306 | |||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | |||||||||||||||||||
| Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets |
|||||||||||||||
| Bank of America NA | $ | 10,533 | $ | (10,533 | ) | $ | — | $ | — | ||||||||||
| Barclays Bank PLC | 30,798 | (15,773 | ) | — | 15,025 | ||||||||||||||
| Citibank NA | 1,085 | (1,085 | ) | — | — | ||||||||||||||
| JPMorgan Chase Bank NA | 229 | — | — | 229 | |||||||||||||||
| Standard Chartered Bank | 13,542 | (12,291 | ) | — | 1,251 | ||||||||||||||
| UBS AG | 119 | (119 | ) | — | — | ||||||||||||||
| Total | $ | 56,306 | $ | (39,801 | ) | $ | — | $ | 16,505 | ||||||||||
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| Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | ||||||||||
| Forward Currency Contracts | $ | 80,225 | $ | — | $80,225 | ||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amounts of Derivative Liabilities | ||||||||||||||||
| Bank of America NA | $ | 24,039 | $ | (10,533 | ) | $ | — | $ | 13,506 | |||||||||||
| Barclays Bank PLC | 15,773 | (15,773 | ) | — | — | |||||||||||||||
| Citibank NA | 13,011 | (1,085 | ) | — | 11,926 | |||||||||||||||
| HSBC Bank USA NA | 63 | — | — | 63 | ||||||||||||||||
| Standard Chartered Bank | 12,291 | (12,291 | ) | — | — | |||||||||||||||
| State Street Bank and Trust Co. | 300 | — | — | 300 | ||||||||||||||||
| UBS AG | 14,748 | (119 | ) | — | 14,629 | |||||||||||||||
| Total | $ | 80,225 | $ | (39,801 | ) | $ | — | $ | 40,424 | |||||||||||
Global Fixed Income Portfolio
| Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | ||||||||||
| Forward Currency Contracts | $ | 95,349 | $ | — | $95,349 | ||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||||
| Citibank NA | $ | 22,541 | $ | (4,483 | ) | $ | — | $ | 18,058 | |||||||||||
| HSBC Bank USA NA | 37,082 | (37,082 | ) | — | — | |||||||||||||||
| JPMorgan Chase Bank NA | 34,390 | (11,313 | ) | — | 23,077 | |||||||||||||||
| Morgan Stanley & Co. | 1,336 | (1,336 | ) | — | — | |||||||||||||||
| Total | $ | 95,349 | $ | (54,214 | ) | $ | — | $ | 41,135 | |||||||||||
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| Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | |||||||||
| Forward Currency Contracts | $59,082 | $ — | $59,082 | |||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amounts of Derivative Liabilities | ||||||||||||||||
| Citibank NA | $ | 4,483 | $ | (4,483 | ) | $ | — | $ | — | |||||||||||
| HSBC Bank USA NA | 40,784 | (37,082 | ) | — | 3,702 | |||||||||||||||
| JPMorgan Chase Bank NA | 11,313 | (11,313 | ) | — | — | |||||||||||||||
| Morgan Stanley & Co. | 2,502 | (1,336 | ) | — | 1,166 | |||||||||||||||
| Total | $ | 59,082 | $ | (54,214 | ) | $ | — | $ | 4,868 | |||||||||||
11. Accounting Pronouncements
On March 12, 2020, the Financial Accounting Standards Board concluded its reference rate reform project with the issuance of Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”). ASU No. 2020-04 provides elective temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank offered reference rates as of the end of 2021. ASU No. 2020-04 is effective for certain reference rate- related contract modifications that have occurred since March 12, 2020 and that will continue to occur, through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU No. 2020-04.
12. Subsequent Events
Management has evaluated subsequent events potentially affecting the Portfolios through the issuance of the financial statements and has determined that there were no subsequent events that required adjustment or disclosure.
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Report of Independent Registered Public Accounting Firm
To the Board of Directors of The Lazard Funds, Inc. and Shareholders of Lazard Emerging Markets Debt Portfolio, Lazard Global Fixed Income Portfolio, Lazard US Corporate Income Portfolio and Lazard US Short Duration Fixed Income Portfolio:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Lazard Emerging Markets Debt Portfolio, Lazard Global Fixed Income Portfolio, Lazard US Corporate Income Portfolio and Lazard US Short Duration Fixed Income Portfolio, (collectively the “Portfolios”), four of the portfolios constituting The Lazard Funds, Inc. (the “Fund”), including the portfolios of investments, as of December 31, 2021, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Portfolios listed above as of December 31, 2021, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
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We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolios’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
New York, New York
February 25, 2022
We have served as the auditor of one or more of the investment companies in the Lazard Fund Complex since 2004.
Annual Report 117
Board of Directors and Officers Information (unaudited)
| Name (Year of Birth) Address(1) |
Position(s) with the Fund (Since) and Term(2) |
Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Independent Directors: | ||||
| Franci J. Blassberg (1953) | Director (August 2014) |
Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present) Cornell Law School, Adjunct Professor (2013 – present) The Buchmann Faculty of Law, Tel Aviv University, Visiting Professor (2019) University of California, Berkeley School of Law, Adjunct Professor (Spring 2017) | ||
| Kenneth S. Davidson (1945) | Director (August 1995) |
Davidson Capital Management Corporation, an investment manager, President (1978 – present) | ||
| Nancy A. Eckl (1962) | Director (April 2007) |
College Retirement Equities Fund (eight accounts), Trustee (2007 – present) TIAA-CREF Funds (68 funds) and TIAA-CREF Life Funds (11 funds), Trustee (2007 – present) TIAA Separate Account VA-1, Member of the Management Committee (2007 – present) | ||
| Trevor W. Morrison (1971) | Director (April 2014) |
New York University School of Law, Dean and Eric M. and Laurie B. Roth Professor of Law (2013 – present) | ||
| Richard Reiss, Jr. (1944) | Director (May 1991) |
Georgica Advisors LLC, an investment manager, Chairman (1997 – present) Osprey Technology Acquisition Corp, a special purpose acquisition company, Director (2019 – present) Resource America, Inc., a real estate asset management company, Director (2016 – 2018) |
118 Annual Report
| Name (Year of Birth) Address(1) |
Position(s) with the Fund (Since) and Term(2) |
Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Robert M. Solmson (1947) | Director (September 2004) |
Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, Co-Managing Partner and Managing Director (2008 – present) | ||
| Interested Directors(3): | ||||
| Ashish Bhutani (1960) | Director (July 2005) |
Investment Manager, Chief Executive Officer (2004 – present) Lazard Ltd, Vice Chairman and Director (2010 – present) | ||
| Nathan A. Paul (1973) | Director (October 2017), Chief Executive Officer and President (February 2017) |
Investment Manager, Chief Business Officer (April 2017 – present) and Managing Director (2003 – present) Investment Manager, General Counsel (2002 – April 2017) |
| (1) | The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
| (2) | Each Director serves as a Director for each of the funds in the Lazard Fund Complex comprised of, as of January 31, 2022, 35 active investment portfolios. Each Director serves an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation. |
| (3) | Messrs. Bhutani and Paul are “interested persons” (as defined in the 1940 Act) of the Fund because of their positions with the Investment Manager (“Interested Directors”). |
The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.lazardassetmanagement.com.
Annual Report 119
| Name (Year of Birth) Address(1) |
Position(s) with the Fund (Since) and Term(2) |
Principal Occupation(s) During the Past Five Years | ||
| Officers(3): | ||||
| Mark R. Anderson (1970) | Vice President and Secretary (February 2017) |
Managing Director (since February 2017), General Counsel (since April 2017) and Chief Compliance Officer (since September 2014) of the Investment Manager | ||
| Nargis Hilal (1984) | Chief Compliance Officer (July 2020) |
Director and Counsel of the Investment Manager (since January 2021, previously Senior Vice President) Chief Compliance Officer of KLS Diversified Asset Management LP (March 2016 – August 2017) | ||
| Christopher Snively (1984) | Chief Financial Officer (March 2016) and Treasurer (September 2019) |
Director of the Investment Manager (since January 2021, previously Senior Vice President) | ||
| Shari L. Soloway (1981) | Assistant Secretary (November 2015) |
Head of Legal, North America and Director of the Investment Manager (since January 2020, previously Senior Vice President) | ||
| Jessica A. Falzone (1989) | Assistant Secretary (January 2019) |
Vice President, Legal and Compliance, of the Investment Manager (since March 2018) Associate at Schulte Roth & Zabel LLP (October 2014 – March 2018) | ||
| Christina Kennedy (1990) | Assistant Treasurer (May 2020) |
Vice President of the Investment Manager (since July 2019) Senior Fund Accountant, Gates Capital Management Inc. (July 2016 – July 2019) | ||
| Cesar A. Trelles (1975) | Assistant Treasurer (December 2004) |
Vice President of the Investment Manager |
| (1) | The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
| (2) | Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex. |
| (3) | In addition to Nathan A. Paul, Chief Executive Officer and President (since February 2017, previously Vice President and Secretary), whose information is included in the Interested Directors section above. |
120 Annual Report
The Lazard Funds, Inc. Tax and Other Information (unaudited)
Tax Information
Year Ended December 31, 2021
The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2021:
Of the dividends paid by the Portfolios, none are qualified dividend income.
Of the dividends paid by the Portfolios, no dividends qualify for the dividends received deduction available to corporate shareholders.
| Portfolio | Foreign Source Income | Foreign Tax Paid/Credit | ||||||
| Emerging Markets Debt | $ | 542,402 | $ | 20,695 | ||||
| Global Fixed Income | 248,076 | 274 | ||||||
| US Corporate Income | — | — | ||||||
| US Short Duration Fixed Income | — | — | ||||||
The Portfolios intend to pass through to shareholders foreign source income and foreign taxes paid, or up to the maximum amount allowable, as a foreign tax credit.
Of the dividends paid by the Portfolios, the corresponding amount represents the long-term capital gains paid to shareholders.
| Portfolio | Long-Term Capital Gains | |||
| Emerging Markets Debt | $ | — | ||
| Global Fixed Income | 134,179 | |||
| US Corporate Income | — | |||
| US Short Duration Fixed Income | — | |||
Pursuant to Section 871 of the Code, the Portfolios have no designated qualified short-term gains for purposes of exempting withholding of tax on such distributions to US nonresident shareholders.
Proxy Voting
A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or
Annual Report 121
(2) on the Securities and Exchange Commission (the “SEC”) web-site at https://www.sec.gov.
The Fund’s proxy voting record for the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SEC’s website at https://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.
Schedule of Portfolio Holdings
The Fund files the complete schedule of each portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.
122 Annual Report
NOTES
NOTES
NOTES
NOTES
NOTES
NOTES
The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
www.lazardassetmanagement.com
Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Custodian
State Street Bank and Trust Company
One Iron Street
Boston, Massachusetts 02210-1641
Transfer Agent and Dividend Disbursing Agent
DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169-0953
Telephone: 617-483-7000
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015
Legal Counsel
Proskauer Rose LLP
Eleven Times Square
New York, New York 10036-8299
www.proskauer.com
|
Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com. LZDPS026 |
|
Lazard Funds
Annual Report
December 31, 2021
Multi-Asset Funds
Lazard Enhanced Opportunities Portfolio
Lazard Global Dynamic Multi-Asset Portfolio
Lazard Opportunistic Strategies Portfolio
Lazard Real Assets Portfolio
The Lazard Funds, Inc. Table of Contents
Please consider a Portfolio’s investment objective, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. (the “Fund”), you may obtain a prospectus or the Portfolio’s summary prospectus by calling 800-823-6300, or online, at www.lazardassetmanagement.com. Read the prospectus or the Portfolio’s summary prospectus carefully before you invest. The prospectus and a Portfolio’s summary prospectus contain the investment objective, risks, charges, expenses and other information about the Portfolio, which are not detailed in this report.
Distributed by Lazard Asset Management Securities LLC.
Annual Report 1
The Lazard Funds, Inc. A Message from Lazard (unaudited)
Dear Shareholder:
The year 2021 proved to be an especially challenging one for global financial markets, as the pandemic entered its second year and new risk factors emerged.
Despite the emergence of several highly effective vaccines in late 2020, anxiety about COVID-19 continued to hang over global financial markets for much of 2021. The uneven nature of the worldwide vaccine rollout, shortages of a wide variety of items, and the emergence of more infectious strains were stark reminders that the virus remained a serious, persistent threat to global public health and the world economy.
Yet, it was the specter of surging global inflation that was also front and center in the minds of investors throughout the year. Traders were concerned that the sharp rise in consumer prices would force monetary policymakers, especially those at the US Federal Reserve (the “Fed”), the world’s most influential central bank, to raise interest rates to contain inflation, potentially hindering a fragile global economic recovery and undercutting a major source of support for riskier assets. Against a backdrop of persistently high inflation and a wave of new COVID-19 cases sweeping across parts of the world, the Fed announced in the closing weeks of December that it would pull back on its massive stimulus program. The news forced markets to prepare to enter 2022 with less Fed support than they have had since the start of the pandemic.
Despite all the challenges and uncertainty, global equity markets generally advanced in 2021, in large part due to solid corporate earnings, especially in the United States and Europe, with data indicating that earnings recoveries were underway for companies in both regions. Global bond markets, including those for sovereign debt and local currency emerging markets, faced headwinds amid the backdrop of rising interest rates and US dollar strength. Among the bright spots were inflation-linked bonds, which were supported by higher inflation expectations, and
2 Annual Report
high yield bonds, which benefited from coupon income and stable or tighter credit spreads.
The year 2021 continued a trend of extraordinary shifts in market conditions. However, whatever the investment landscape, we remain confident that fundamental analyses will be crucial drivers of performance going forward. We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities.
Sincerely,
Lazard Asset Management LLC
Annual Report 3
Lazard Retirement Series, Inc. Investment Overviews (unaudited)
MARKET OVERVIEWS
Global Markets
For the year ended December 31, global equity markets rose sharply, as measured by the MSCI All Country World Index (“MSCI ACWI”), as risk appetites proved resilient enough to fuel a rally that was able to overcome heightened uncertainty.
Despite the discovery of a vaccine last November, coronavirus disease 2019 (“COVID-19”) risk lingered and remained a persistent source of anxiety for investors. The emergence of the rapidly spreading, highly infectious Delta and Omicron variants of COVID-19 in the second half of the year sparked waves of infections around the world and rattled markets, with traders fearing the imposition of economically punishing lockdowns in order to contain the outbreaks. However, in the case of the Omicron variant, which emerged in late November, these fears eased considerably, as scientific data suggested that this variant may cause less severe illness than the Delta and earlier variants.
The specter of surging global inflation was top of mind for investors for much of 2021 amid supply-chain bottlenecks, labor shortages, and sharp increases in shipping costs and oil prices. With consumer prices remaining stubbornly high, all eyes were on the stimulus policy path of the US Federal Reserve (the “Fed”). The announcement by the world’s most influential central bank in the final weeks of the year that it would accelerate the tapering of its bond purchases and likely raise interest rates three times in 2022 received a mixed reaction from financial markets. While traders were heartened by signs that the Fed took the threat of inflation seriously, they also worried that a rapid increase in interest rates could slow global economic growth and undercut the appeal of stocks, which have benefited greatly from the massive stimulus programs. Two other key central banks, the Bank of England and the European Central Bank, announced that they, too, were taking a more hawkish turn in order to contain higher prices.
Negative developments in China during the year compounded market anxiety. China’s economic slowdown and increased
4 Annual Report
regulatory scrutiny of domestic companies, coupled with the financial woes of the country’s debt-laden real estate sector, weighed heavily on the world’s second largest economy.
Despite mounting uncertainty, consistently strong profits, especially for US and European companies, provided momentum for a stock market rally. In all four quarterly corporate earnings seasons in 2021, the percentage of companies in both the S&P 500 Index, which is widely used to represent the performance of large capitalization US companies, and the STOXX Europe 600 Index, generally considered representative of European stock market performance, exceeded expectations, beating their long-term historical averages. Encouragingly, data indicated that an earnings recovery was underway for companies on both sides of the Atlantic. Japanese companies also reported upbeat corporate earnings throughout the year. Against this backdrop, the MSCI ACWI, which covers both developed and developing markets, climbed 18.5% in 2021 (in US dollar terms).
Stock markets in the developed world advanced in 2021, while those in the developing world retreated. In the US, the S&P 500 Index outperformed the MSCI ACWI by a wide margin, as bullish sentiment about corporate earnings and the country’s improving economic outlook drove the US stock market higher. For the year, the S&P 500 Index posted seventy all-time highs for 2021, the most in the post-World War II era since 1954. In Europe, the STOXX Europe 600 Index gained, but underperformed the MSCI ACWI, as solid corporate earnings were overshadowed by anxiety about another wave of COVID-19 infections that swept across the continent. In Japan, the MSCI Japan Index climbed but trailed the MSCI ACWI, as the country’s COVID-19 outbreaks and sluggish personal consumption proved to be obstacles. Despite these headwinds, strong corporate earnings, especially from manufacturers, made significant positive contributions to performance. Meanwhile, in the developing world, China’s stock market, as measured by the MSCI China Index, fell due to concerns about the country’s dimming economic outlook. The country’s increased regulatory scrutiny wiped out $1 trillion in stock market value of China-based companies.
Annual Report 5
Multi-Asset
Global equity markets rose sharply in 2021, thanks to strong corporate earnings, especially in the US and Europe and from the extraordinary monetary support from key central banks such as the Fed and the European Central Bank. Global interest rates were mixed during the year, increasing in the first quarter, falling in the second and remaining volatile in the third and fourth quarter. The yield on the benchmark US 10-year Treasury note ended the year at 1.51%, with a range for 2021 of 0.91% to 1.75%, with both the high and the low occurring in the first quarter. Inflationary pressure increased in the latter part of the year. Across the Atlantic, the yield on the 10-year German Bund, Europe’s principal safe haven asset, ended the year at -0.17%, with a range for 2021 of -0.57% to -0.08%.
PORTFOLIO PERFORMANCE
Lazard Enhanced Opportunities Portfolio
For the year ended December 31, 2021, the Lazard Enhanced Opportunities Portfolio’s Institutional Shares posted a total return of 7.05%, while Open Shares posted a total return of 6.78%, as compared with the 4.12% return for the ICE BofA ML US Convertible ex Mandatory® Index and the 3.65% return for the HFRX Global Hedge Fund® Index.
During the year, a supportive backdrop for credit, which was reflected by credit spread tightening throughout most of the year, helped convertible bonds and overall Portfolio performance. Volatility-sensitive convertibles, benefitted from elevated levels of market volatility at the start of the year and several spikes in realized volatility, particularly throughout the third and fourth quarters of the year. Special situation activity, whereby the Portfolio exited convertible securities via non-traditional, negotiated exits, also benefitted the Portfolio. The primary issuance market followed up a record year in 2020 with $148 billion of new issuances globally in 2021.
In contrast, declining equity market volatility, particularly throughout the end of the first quarter and second quarter of the
6 Annual Report
year (equity volatility reached year-to-date lows in June), detracted from performance. Basis cheapening, which occurs when hedges do not fully offset mark-to-market declines on long convertible bond positions, also hurt performance, mainly in the second quarter. After the historic surge in new debt issuances observed in the first quarter, investors became motivated sellers, and inflation concerns weighed on secondary valuations over this period.
Derivatives, including portfolio-level hedges, like options on index ETFs; swap agreements; forward foreign currency contracts; and both purchased and written options were a small, positive contributor to Portfolio returns.
Lazard Global Dynamic Multi-Asset Portfolio
For the year ended December 31, 2021, the Lazard Global Dynamic Multi-Asset Portfolio’s Institutional Shares posted a total return of 12.17%, while Open Shares posted a total return of 11.78%, as compared with the 21.82% return for the MSCI World Index and 13.21% return of its blended benchmark, which is a 50/50 blend of the MSCI World Index and Bloomberg Barclays Global Aggregate® Index (the “GDMA Index”).
An average overweight over the year (compared to the benchmark) to equity versus fixed income contributed positively to relative performance, as equities significantly outperformed fixed income during 2021. Stock selection in the information technology sector also boosted relative performance, as did lower-than-benchmark exposure to bonds in the Eurozone and the United Kingdom.
Stock selection in the materials sector detracted, as did higher-than-benchmark exposure to Canada, Australia, New Zealand, and Singapore within fixed income.
Derivatives, in the form of forward currency contracts, were used for foreign currency hedging purposes only. This hedging activity marginally detracted from overall performance during the year.
Annual Report 7
Lazard Opportunistic Strategies Portfolio
For the year ended December 31, 2021, the Lazard Opportunistic Strategies Portfolio’s Institutional Shares posted a total return of 12.96%, while Open Shares posted a total return of 12.55%, as compared with the 21.82% return for the MSCI World Index and 12.08% return for the Global Asset Allocation Blended Index.
The Portfolio’s investments are generally grouped by the Portfolio management team into the following three categories: trending, diversifying and contrarian. The Portfolio management team makes allocation changes based on a forward-looking assessment of capital markets using a risk/reward analysis.
Trending investments, which represented 54% of the Portfolio at the end of the period and returned 21.78%, outperformed the Global Asset Allocation Blended Index and were relatively in line with the MSCI World Index. Positions in US large cap, healthcare and industrials sectors contributed to performance, while exposure to US crude oil futures contracts through the United States Oil Fund and companies in Latin America through iShares Latin America 40 ETF detracted from performance.
Contrarian investments, which represented 21% of the Portfolio at the end of the period and returned 14.31%, outperformed the Global Asset Allocation Blended Index and underperformed the MSCI World Index. Exposure to value stocks within the segment contributed to performance, while companies domiciled in Japan contributed the least.
Diversifying investments, which represented 26% of the Portfolio at the end of the period and returned 3%, outperformed US fixed income, as represented by the Bloomberg Barclays US Aggregate Index and underperformed the Global Asset Allocation Blended Index. Exposure to US consumer staples stock contributed to performance, while positions in intermediate term treasury bonds and intermediate term corporate bonds detracted from performance.
8 Annual Report
Lazard Real Assets Portfolio
For the year ended December 31, 2021, the Lazard Real Assets Portfolio’s Institutional Shares posted a total return of 22.25%, while Open Shares posted a total return of 21.93%, as compared with the 19.32% return for the Real Assets Custom Index and the 21.82% return for the MSCI World Index.
Listed infrastructure stocks contributed to performance. Operators of electricity and gas respectively, National Grid and Consolidated Edison, were among the top contributors. By contrast, toll road operator Transurban and satellite operator SES hurt performance.
Real estate performance added value, aided by US REITs Prologis and American Tower Corporation. Meanwhile, German REIT Vonovia and Chinese REIT Logan Group detracted from returns.
The Portfolio’s commodities allocation was the strongest contributor to relative performance, primarily driven by exposure to natural gas, crude oil, corn, and soybean oil futures. Conversely, gold, silver, and soybean meal detracted. Commodity-related equities had favorable performance but a more muted contribution due to a lower weight relative to futures throughout the period.
The Portfolio used forward currency contracts for hedging purposes. The impact of these instruments added value during the period. The Portfolio used futures and total return swaps to gain commodities exposure. The combined contribution of these instruments was positive for the Portfolio during the period.
Annual Report 9
The Lazard Funds, Inc. Performance Overviews (unaudited)
Please see the “Notes to the Performance Overviews” for important information about the calculation of total returns, performance information generally, performance differences between Institutional Shares and Open Shares, and the indexes shown below.
Lazard Enhanced Opportunities Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Enhanced Opportunities Portfolio, the ICE BofAML U.S. Convertible ex Mandatory® Index and the HFRX Global Hedge Fund® Index*
Average Annual Total Returns
Periods Ended December 31, 2021
| One Year |
Five Year |
Since Inception |
† | |
| Institutional Shares | 7.05% | 5.62% | 4.26% | |
| Open Shares | 6.78% | 5.36% | 4.00% | |
| ICE BofAML U.S. Convertible ex Mandatory Index | 4.12% | 17.75% | 13.72% | |
| HFRX Global Hedge Fund Index | 3.65% | 3.52% | 2.32% |
| † | The inception date for the Portfolio was December 31, 2014. |
10 Annual Report
Lazard Global Dynamic Multi-Asset Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Dynamic Multi-Asset Portfolio, the MSCI® World Index and GDMA Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One Year |
Five Year |
Since Inception |
† | |
| Institutional Shares | 12.17% | 8.57% | 7.72% | |
| Open Shares | 11.78% | 8.26% | 7.41% | |
| MSCI World Index | 21.82% | 15.03% | 14.43% | |
| GDMA Index | 7.92% | 9.33% | 8.49% |
| † | The inception date for the Portfolio was May 27, 2016. |
Lazard Opportunistic Strategies Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Opportunistic Strategies Portfolio, MSCI World Index and Global Asset Allocation Blended Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One Year |
Five Year |
Ten Year |
||
| Institutional Shares | 12.96% | 7.91% | 6.61% | |
| Open Shares | 12.55% | 7.61% | 6.25% | |
| MSCI World Index | 21.82% | 15.03% | 12.70% | |
| Global Asset Allocation Blended Index | 12.08% | 10.78% | 8.98% |
Annual Report 11
Lazard Real Assets Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Real Assets Portfolio, MSCI World Index and Real Assets Index, Real Assets Custom Index and Real Assets Linked Custom Index
Average Annual Total Returns
Periods Ended December 31, 2021
| One Year |
Five Year |
Since Inception |
† | |
| Institutional Shares | 21.60% | 7.61% | 7.60% | |
| Open Shares | 21.28% | N/A | 7.30% | |
| MSCI World Index | 21.82% | 15.03% | 15.03% (Institutional Shares) 14.76% (Open Shares) |
|
| Real Assets Index | 23.73% | 8.11% | 8.11% (Institutional Shares) 8.10% (Open Shares) |
|
| Real Assets Custom Index | 19.32% | 8.76% | 8.76% (Institutional Shares) 8.70% (Open Shares) |
|
| Real Assets Linked Custom Index | 23.73% | 9.62% | 9.62% (Institutional Shares) 9.56 (Open Shares) |
| † | The inception date for the Institutional Shares was December 30, 2016 and for the Open Shares was January 9, 2017. |
Notes to Performance Overviews:
Information About Portfolio Performance Shown Above
Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s administrator (“State Street”), or DST Asset Manager Solutions, Inc., the Fund’s transfer agent and dividend disbursing
12 Annual Report
agent (“DST”); without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
Performance results do not include adjustments made for financial reporting purposes in accordance with US Generally Accepted Accounting Principles (“GAAP”), if any, and may differ from amounts reported in the financial highlights. For the Lazard Enhanced Opportunity Portfolio, a voluntary reimbursement by State Street increased the total return ratio by 0.11%, for year ended December 31, 2021 and 0.49% for year ended December 31, 2017.
The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of an investment in a Portfolio will fluctuate, so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated, there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graphs and tables above do not reflect the deduction of taxes that a shareholder would pay on a Portfolio’s distributions or the redemption of Portfolio shares.
The performance of Institutional Shares, Open Shares and R6 Shares, as applicable, may vary, primarily based on the differences in fees borne by shareholders investing in different classes of a Portfolio.
Information About Portfolio Performance Shown Above
The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The indices are unmanaged, have no fees or costs and are not available for investment.
The MSCI World Index is a free-float-adjusted market capitalization index that is designed to measure global developed markets equity performance. The MSCI World Index consists of 23 developed markets country indices.
The GDMA Index is a blended index constructed by the Investment Manager that is comprised of 50% MSCI World Index and 50% Bloomberg Global Aggregate® Index and is rebalanced monthly. The Bloomberg Global Aggregate Index provides a broad-based measure of global investment-grade fixed-income debt markets, including government-related debt, corporate debt, securitized debt and sovereign debt.
The Global Asset Allocation Blended Index is a blended index constructed by the Investment Manager that is comprised of 60% MSCI World Index and 40% Bloomberg Barclays US Aggregate Index and is rebalanced quarterly. The Bloomberg Barclays US Aggregate Index covers the investment-grade, US dollar-denominated, fixed-rate taxable bond market, including US Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities, with maturities of no less than one year.
The Real Assets Index is an index constructed by the Investment Manager that is comprised of 33.3% MSCI World Core Infrastructure USD Hedged Index, 33.3% MSCI ACWI IMI Core Real Estate Index, and 33.3% Bloomberg Barclays Commodity Total Return Index. The Real Assets Index was constructed by the Investment Manager for comparison to the performance of the Lazard Real Assets Portfolio pursuant to its investment strategy effective September 1, 2020. The Real Assets Index will replace the Real Assets Custom Index, which was created by the Investment Manager for comparison to the Portfolio’s performance pursuant to its investment strategy prior to September 1, 2020.
Annual Report 13
The Real Assets Custom Index is an unmanaged index created by the Investment Manager, and is comprised of 20% MSCI World Index, 20% MSCI World Core Infrastructure USD Hedged Index (the “Infrastructure Index”), 20% MSCI ACWI IMI Core Real Estate Index, 20% Bloomberg Commodity Total Return Index and 20% Bloomberg Barclays World Government Inflation-Linked 1–10 Year USD Hedged Index. The Infrastructure Index captures large and mid-cap securities across the 23 developed market countries of the MSCI World Index and is designed to represent the performance of listed companies within the developed markets that are engaged in core industrial infrastructure activities. Note that the Investment Manager invests in a range of companies globally, not specifically developed markets countries. The MSCI ACWI IMI Core Real Estate Index is a free float-adjusted market capitalization index that consists of large, mid and small-cap stocks across 23 developed markets and 27 emerging markets countries engaged in the ownership, development and management of specific core property type real estate. The index excludes companies, such as real estate services and real estate financing companies, that do not own properties. The Bloomberg Commodity Total Return index is composed of futures contracts and reflects the returns on a fully collateralized investment in the Bloomberg Commodity Indices (the “BCOM”). This combines the returns of the BCOM with the returns on cash collateral invested in 13 week (3 Month) U.S. Treasury Bills. The Bloomberg Barclays World Government Inflation-Linked Bond 1–10 Year Index measures the performance of investment grade, government inflation-linked debt from 12 different developed market countries.
The Real Assets Linked Custom Index shown in the table is an unmanaged index created by the Investment Manager, which links the performance of the Real Assets Custom Index for periods through August 31, 2020 (after which the Portfolio’s investment strategy changed) and the Real Assets Index for periods thereafter.
The ICE BofAML U.S. Convertible ex Mandatory Index measures the performance of convertible securities of all corporate sectors with a par amount of $25 million or more and a maturity of at least one year and excludes preferred equity redemption stocks and converted securities.
The HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies, including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event-driven, macro, merger arbitrage, and relative value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge fund industry.
14 Annual Report
The Lazard Funds, Inc.
Information About Your Portfolio’s Expenses (unaudited)
Expense Example
As a shareholder in a Portfolio, you incur ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2021 through December 31, 2021 and held for the entire period.
Actual Expenses
For each share class of the Portfolios, the first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each share class of the Portfolios, the second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
Annual Report 15
| Portfolio | Beginning Account Value 7/1/21 | Ending Account Value 12/31/21 | Expenses Paid During Period 7/1/21 - 12/31/21 | * |
Annualized Expense Ratio During Period 7/1/21 - 21/31/21 |
||||||
| Enhanced Opportunities† | |||||||||||
| Institutional Shares | |||||||||||
| Actual | $1,000.00 | $ | 1,027.60 | $8.69 | 1.70% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,015.43 | $8.64 | 1.70% | ||||||
| Open Shares | |||||||||||
| Actual | $1,000.00 | $ | 1,026.20 | $9.04 | 1.77% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,014.77 | $9.00 | 1.77% | ||||||
| Global Dynamic Multi-Asset | |||||||||||
| Institutional Shares | |||||||||||
| Actual | $1,000.00 | $ | 1,057.20 | $4.67 | 0.90% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.67 | $4.58 | 0.90% | ||||||
| Open Shares | |||||||||||
| Actual | $1,000.00 | $ | 1,055.50 | $5.96 | 1.15% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.41 | $5.85 | 1.15% | ||||||
| Opportunistic Strategies† | |||||||||||
| Institutional Shares | |||||||||||
| Actual | $1,000.00 | $ | 1,045.60 | $5.77 | 1.12% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.56 | $5.70 | 1.12% | ||||||
| Open Shares | |||||||||||
| Actual | $1,000.00 | $ | 1,043.20 | $7.06 | 1.37% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,018.30 | $6.97 | 1.37% | ||||||
| Real Assets | |||||||||||
| Institutional Shares | |||||||||||
| Actual | $1,000.00 | $ | 1,077.40 | $4.19 | 0.80% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.17 | $4.08 | 0.80% | ||||||
| Open Shares | |||||||||||
| Actual | $1,000.00 | $ | 1,075.00 | $5.70 | 1.09% | ||||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.71 | $5.55 | 1.09% | ||||||
| * | Expenses are equal to the annualized expense ratio, net of expenses waivers and reimbursements, of each share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
| † | The expense ratios include broker expense and dividend expense on securities sold short. |
16 Annual Report
The Lazard Funds, Inc. Portfolio Holdings
Presented by Asset Class/Sector December 31, 2021
| Lazard Enhanced Opportunities Portfolio |
|||||||||
| Asset Class/Sector | Long | ^ | Short† | ||||||
| Convertible Corporate Bonds | |||||||||
| Communication Services | 9.0 | % | — | % | |||||
| Consumer Discretionary | 12.0 | — | |||||||
| Consumer Staples | 3.1 | — | |||||||
| Energy | 0.6 | — | |||||||
| Financials | 13.0 | — | |||||||
| Health Care | 17.8 | — | |||||||
| Industrials | 5.4 | — | |||||||
| Information Technology | 13.4 | — | |||||||
| Materials | 2.9 | — | |||||||
| Real Estate | 3.5 | — | |||||||
| Utilities | 0.6 | — | |||||||
| Equity | |||||||||
| Communication Services | — | –5.7 | |||||||
| Consumer Discretionary | 0.0 | # | –11.6 | ||||||
| Consumer Staples | — | –2.8 | |||||||
| Energy | — | –0.6 | |||||||
| Financials | 0.0 | # | –5.9 | ||||||
| Health Care | 0.0 | # | –24.5 | ||||||
| Industrials | — | –6.1 | |||||||
| Information Technology | — | –13.0 | |||||||
| Materials | — | –4.1 | |||||||
| Real Estate | — | –3.8 | |||||||
| Utilities | — | –1.3 | |||||||
| US Treasury Securities | — | –20.6 | |||||||
| Short-Term Investments | 18.7 | — | |||||||
| Total Investments | 100.0 | % | –100.0 | % | |||||
| ^ | Represents percentage of total investments excluding securities sold short. |
| † | Represents percentage of total securities sold short. |
| # | Amount is less than 0.05%. |
Annual Report 17
| Asset Class/Sector* | Lazard Global Dynamic Multi-Asset Portfolio | Lazard Real Assets Portfolio | |||||||
| Equity | |||||||||
| Communication Services | 6.3 | % | 1.0 | % | |||||
| Consumer Discretionary | 10.6 | 1.3 | |||||||
| Consumer Staples | 6.2 | 0.3 | |||||||
| Energy | 2.0 | — | |||||||
| Financials | 13.3 | — | |||||||
| Health Care | 9.7 | — | |||||||
| Industrials | 8.6 | 10.6 | |||||||
| Information Technology | 18.2 | — | |||||||
| Materials | 2.4 | 1.0 | |||||||
| Real Estate | 1.9 | 36.3 | |||||||
| Utilities | 1.3 | 16.4 | |||||||
| Exchange Traded Funds | — | 4.0 | |||||||
| Sovereign Debt | 16.5 | — | |||||||
| US Municipal Bonds | 1.2 | — | |||||||
| US Treasury Securities | 0.4 | — | |||||||
| Short-Term Investments | 1.4 | 29.1 | |||||||
| Total Investments | 100.0 | % | 100.0 | % | |||||
| Lazard Opportunistic Strategies Portfolio |
|||||||||
| Asset Class/Sector | Long | ^ | Short | † | |||||
| Equity** | |||||||||
| Communication Services | 4.5 | % | — | % | |||||
| Consumer Discretionary | 6.6 | — | |||||||
| Consumer Staples | 8.5 | — | |||||||
| Energy | 1.3 | — | |||||||
| Financials | 9.4 | — | |||||||
| Health Care | 13.7 | — | |||||||
| Industrials | 11.2 | — | |||||||
| Information Technology | 18.0 | — | |||||||
| Materials | 1.9 | — | |||||||
| Real Estate | 1.5 | — | |||||||
| Utilities | 1.5 | — | |||||||
| Commodity | 2.9 | — | |||||||
| Fixed Income | 16.9 | –100.0 | |||||||
| Short-Term Investments | 2.1 | — | |||||||
| Total Investments | 100.0 | % | –100.0 | % | |||||
| * | Represents percentage of total investments. |
| ^ | Represents percentage of total investments excluding securities sold short. |
| † | Represents percentage of total securities sold short. |
| ** | Equity sector breakdown is based upon the underlying holdings of exchange- traded funds held by the Portfolio. |
18 Annual Report
The Lazard Funds, Inc. Portfolios of Investments
December
31, 2021
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Convertible Corporate Bonds | 113.5% | ||||||||||
| Australia | 0.3% | ||||||||||
| Zip Co., Ltd., 0.000%, 04/23/28 (±) | AUD | 800 | $ | 446,370 | ||||||
| Austria | 0.4% | ||||||||||
| ams AG, 2.125%, 11/03/27 (±) | EUR | 500 | 554,863 | |||||||
| Brazil | 0.7% | ||||||||||
| GOL Equity Finance SA, 3.750%, 07/15/24 (#), (±) | USD | 1,225 | 1,047,375 | |||||||
| Canada | 3.5% | ||||||||||
| Aurora Cannabis, Inc., 5.500%, 02/28/24 (±) | USD | 1,647 | 1,404,067 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 19
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| Canopy Growth Corp., 4.250%, 07/15/23 (#), (±) | CAD | 1,063 | $ | 783,626 | ||||||
| Dye & Durham, Ltd., 3.750%, 03/01/26 | CAD | 1,062 | 819,460 | |||||||
| Ivanhoe Mines, Ltd., 2.500%, 04/15/26 (±) | USD | 750 | 1,008,750 | |||||||
| Lithium Americas Corp., 1.750%, 01/15/27 (±) | USD | 359 | 345,322 | |||||||
| New Flyer Industries, Inc., 5.000%, 01/15/27 | CAD | 469 | 374,251 | |||||||
| Osisko Gold Royalties, Ltd., 4.000%, 12/31/22 | CAD | 385 | 310,584 | |||||||
| 5,046,060 | ||||||||||
| China | 2.1% | ||||||||||
| NIO, Inc., 0.000%, 02/01/26 (±) | USD | 1,858 | 1,619,247 | |||||||
| Li Auto, Inc., 0.250%, 05/01/28 (#), (±) | USD | 1,048 | 1,388,600 | |||||||
| 3,007,847 | ||||||||||
| Israel | 0.1% | ||||||||||
| Camtek, Ltd., 0.000%, 12/01/26 (±) | USD | 159 | 168,937 | |||||||
| Italy | 0.5% | ||||||||||
| Kaleyra, Inc., 6.125%, 06/01/26 (±) | USD | 717 | 737,650 | |||||||
| Netherlands | 0.5% | ||||||||||
| Pharming Group NV, 3.000%, 01/21/25 (±) | EUR | 800 | 793,165 | |||||||
| Saudi Arabia | 0.8% | ||||||||||
| Delivery Hero SE, 1.500%, 01/15/28 (±) | EUR | 1,100 | 1,207,445 | |||||||
| Singapore | 1.0% | ||||||||||
| SGX Treasury I Pte, Ltd., 0.000%, 03/01/24 (±) | EUR | 1,200 | 1,392,840 | |||||||
The accompanying notes are an integral part of these financial statements.
20 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| Taiwan | 0.6% | ||||||||||
| Sea, Ltd., 0.250%, 09/15/26 (±) | USD | 992 | $ | 917,005 | ||||||
| United Kingdom | 0.6% | ||||||||||
| Just Eat Takeaway.com NV, 1.250%, 04/30/26 (±) | EUR | 900 | 916,138 | |||||||
| United States | 102.4% | ||||||||||
| 1Life Healthcare, Inc., 3.000%, 06/15/25 (±) | USD | 1,088 | 983,334 | |||||||
| Aerie Pharmaceuticals, Inc., 1.500%, 10/01/24 (±) | USD | 805 | 684,250 | |||||||
| Affirm Holdings, Inc., 0.000%, 11/15/26 (±) | USD | 1,057 | 955,528 | |||||||
| Air Transport Services Group, Inc., 1.125%, 10/15/24 (±) | USD | 892 | 996,810 | |||||||
| Airbnb, Inc., 0.000%, 03/15/26 (±) | USD | 732 | 718,092 | |||||||
| Alphatec Holdings, Inc., 0.750%, 08/01/26 (±) | USD | 619 | 602,751 | |||||||
| Alteryx, Inc., 0.500%, 08/01/24 (±) | USD | 1,356 | 1,279,793 | |||||||
| Amyris, Inc., 1.500%, 11/15/26 (±) | USD | 1,605 | 1,352,212 | |||||||
| Apollo Commercial Real Estate Finance, Inc., 4.750%, 08/23/22 (±) | USD | 1,227 | 1,237,736 | |||||||
| Arbor Realty Trust, Inc., 4.750%, 11/01/22 (±) | USD | 1,632 | 1,797,715 | |||||||
| Array Technologies, Inc., 1.000%, 12/01/28 (±) | USD | 794 | 754,697 | |||||||
| Atlas Air Worldwide Holdings, Inc., 2.250%, 06/01/22 (±) | USD | 1,893 | 2,427,772 | |||||||
| Avadel Finance Cayman, Ltd., 4.500%, 02/01/23 (±) | USD | 1,501 | 1,596,838 | |||||||
| Avaya Holdings Corp., 2.250%, 06/15/23 (±) | USD | 1,484 | 1,570,814 | |||||||
| Avid SPV LLC, 1.250%, 03/15/26 (±) | USD | 961 | 1,503,965 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 21
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| Bentley Systems, Inc., 0.375%, 07/01/27 (±) | USD | 805 | $ | 744,625 | ||||||
| Beyond Meat, Inc., 0.000%, 03/15/27 (±) | USD | 1,010 | 705,081 | |||||||
| BioMarin Pharmaceutical, Inc., 1.250%, 05/15/27 (±) | USD | 820 | 859,442 | |||||||
| Blackline, Inc., 0.000%, 03/15/26 (±) | USD | 1,424 | 1,330,016 | |||||||
| Braemar Hotels & Resorts, Inc., 4.500%, 06/01/26 (±) | USD | 499 | 559,545 | |||||||
| Century Aluminum Co., 2.750%, 05/01/28 (±) | USD | 632 | 726,168 | |||||||
| Chegg, Inc., 0.000%, 09/01/26 (±) | USD | 1,044 | 869,130 | |||||||
| Cinemark Holdings, Inc., 4.500%, 08/15/25 (±) | USD | 1,129 | 1,618,704 | |||||||
| Coherus Biosciences, Inc., 1.500%, 04/15/26 (±) | USD | 1,303 | 1,440,629 | |||||||
| Collegium Pharmaceutical, Inc., 2.625%, 02/15/26 (±) | USD | 1,137 | 1,108,575 | |||||||
| Confluent, Inc., 0.000%, 01/15/27 (±) | USD | 1,234 | 1,343,517 | |||||||
| CSG Systems International, Inc., 4.250%, 03/15/36 (±) | USD | 1,851 | 1,965,531 | |||||||
| Cutera, Inc., 2.250%, 03/15/26 (±) | USD | 1,033 | 1,489,483 | |||||||
| Danimer Scientific, Inc., 3.250%, 12/15/26 (±) | USD | 479 | 506,830 | |||||||
| DigitalOcean Holdings, Inc., 0.000%, 12/01/26 (±) | USD | 329 | 292,613 | |||||||
| DISH Network Corp., 3.375%, 08/15/26 (±) | USD | 884 | 838,963 | |||||||
| DraftKings, Inc., 0.000%, 03/15/28 (±) | USD | 127 | 96,266 | |||||||
| Dynavax Technologies Corp., 2.500%, 05/15/26 (±) | USD | 618 | 1,001,546 | |||||||
| Encore Capital Group, Inc., 3.250%, 03/15/22 (±) | USD | 394 | 531,408 | |||||||
| Everbridge, Inc., 0.125%, 12/15/24 (±) | USD | 309 | 301,468 | |||||||
The accompanying notes are an integral part of these financial statements.
22 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| EZCORP, Inc., 2.875%, 07/01/24 (±) | USD | 1,108 | $ | 1,144,010 | ||||||
| Fastly, Inc., 0.000%, 03/15/26 (±) | USD | 1,515 | 1,246,088 | |||||||
| Fisker, Inc., 2.500%, 09/15/26 (±) | USD | 1,363 | 1,415,884 | |||||||
| Fiverr International, Ltd., 0.000%, 11/01/25 (±) | USD | 867 | 809,345 | |||||||
| Fortive Corp., 0.875%, 02/15/22 (±) | USD | 1,548 | 1,555,740 | |||||||
| fuboTV, Inc., 3.250%, 02/15/26 (±) | USD | 1,294 | 1,053,801 | |||||||
| Gossamer Bio, Inc., 5.000%, 06/01/27 (±) | USD | 844 | 827,120 | |||||||
| Groupon, Inc., 1.125%, 03/15/26 (±) | USD | 1,450 | 1,149,125 | |||||||
| Guess?, Inc., 2.000%, 04/15/24 (±) | USD | 1,249 | 1,462,111 | |||||||
| Helix Energy Solutions Group, Inc., 6.750%, 02/15/26 (±) | USD | 1,302 | 1,298,745 | |||||||
| Herbalife Nutrition, Ltd., 2.625%, 03/15/24 (±) | USD | 2,095 | 2,104,218 | |||||||
| Hope Bancorp, Inc., 2.000%, 05/15/38 (±) | USD | 2,578 | 2,519,995 | |||||||
| i3 Verticals LLC, 1.000%, 02/15/25 (±) | USD | 889 | 827,926 | |||||||
| Innoviva, Inc., 2.125%, 01/15/23 (±) | USD | 2,554 | 2,790,245 | |||||||
| Inotiv, Inc., 3.250%, 10/15/27 (±) | USD | 926 | 1,120,460 | |||||||
| Insmed, Inc., 0.750%, 06/01/28 (±) | USD | 1,395 | 1,518,457 | |||||||
| Intercept Pharmaceuticals, Inc., 3.500%, 02/15/26 (±) | USD | 1,374 | 1,495,084 | |||||||
| Ionis Pharmaceuticals, Inc., 0.000%, 04/01/26 (±) | USD | 1,053 | 931,273 | |||||||
| JetBlue Airways Corp., 0.500%, 04/01/26 (±) | USD | 429 | 402,066 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 23
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| JPMorgan Chase Bank NA, 0.000%, 12/28/23 (±) | USD | 1,300 | $ | 1,288,300 | ||||||
| Kaman Corp., 3.250%, 05/01/24 (±) | USD | 1,480 | 1,534,760 | |||||||
| Karyopharm Therapeutics, Inc., 3.000%, 10/15/25 (±) | USD | 832 | 680,160 | |||||||
| KKR Real Estate Finance Trust, Inc., 6.125%, 05/15/23 (±) | USD | 806 | 854,497 | |||||||
| LendingTree, Inc., 0.500%, 07/15/25 (±) | USD | 1,430 | 1,192,263 | |||||||
| Liberty Broadband Corp.: | ||||||||||
| 1.250%, 09/30/50 (±) | USD | 2,160 | 2,140,560 | |||||||
| 2.750%, 09/30/50 (±) | USD | 2,267 | 2,302,105 | |||||||
| Liberty Interactive LLC: | ||||||||||
| 4.000%, 11/15/29 (±) | USD | 1,218 | 919,242 | |||||||
| 3.750%, 02/15/30 (±) | USD | 1,851 | 1,414,032 | |||||||
| Liberty Media Corp.: | ||||||||||
| 2.125%, 03/31/48 (±) | USD | 2,009 | 2,083,333 | |||||||
| 2.750%, 12/01/49 (±) | USD | 1,911 | 1,971,196 | |||||||
| Ligand Pharmaceuticals, Inc., 0.750%, 05/15/23 (±) | USD | 1,121 | 1,121,701 | |||||||
| Lucid Group, Inc., 1.250%, 12/15/26 (±) | USD | 1,005 | 994,649 | |||||||
| Luminar Technologies, Inc., 1.250%, 12/15/26 (±) | USD | 337 | 358,905 | |||||||
| Magnite, Inc., 0.250%, 03/15/26 (±) | USD | 2,012 | 1,579,420 | |||||||
| Mandiant, Inc., 0.875%, 06/01/24 (±) | USD | 1,331 | 1,390,895 | |||||||
| MannKind Corp., 2.500%, 03/01/26 (±) | USD | 1,213 | 1,363,100 | |||||||
| Mesa Laboratories, Inc., 1.375%, 08/15/25 (±) | USD | 658 | 841,450 | |||||||
| MicroStrategy, Inc., 0.000%, 02/15/27 (±) | USD | 660 | 479,358 | |||||||
| Mitek Systems, Inc., 0.750%, 02/01/26 (±) | USD | 1,033 | 1,135,530 | |||||||
| MP Materials Corp., 0.250%, 04/01/26 (±) | USD | 1,297 | 1,643,947 | |||||||
The accompanying notes are an integral part of these financial statements.
24 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| NanoString Technologies, Inc., 2.625%, 03/01/25 | USD | 211 | $ | 252,013 | ||||||
| NCL Corp., Ltd., 1.125%, 02/15/27 (±) | USD | 1,831 | 1,723,520 | |||||||
| Nutanix, Inc., 0.250%, 10/01/27 (±) | USD | 1,206 | 1,103,490 | |||||||
| NuVasive, Inc.: | ||||||||||
| 1.000%, 06/01/23 (±) | USD | 2,111 | 2,121,555 | |||||||
| 0.375%, 03/15/25 (±) | USD | 621 | 598,489 | |||||||
| Omeros Corp., 5.250%, 02/15/26 (±) | USD | 1,003 | 742,783 | |||||||
| Opendoor Technologies, Inc., 0.250%, 08/15/26 (±) | USD | 1,363 | 1,419,224 | |||||||
| OSI Systems, Inc., 1.250%, 09/01/22 (±) | USD | 1,618 | 1,661,611 | |||||||
| Pacira BioSciences, Inc., 0.750%, 08/01/25 (±) | USD | 618 | 686,366 | |||||||
| PAR Technology Corp., 1.500%, 10/15/27 (±) | USD | 898 | 905,296 | |||||||
| Patrick Industries, Inc., 1.000%, 02/01/23 (±) | USD | 899 | 1,001,261 | |||||||
| Pebblebrook Hotel Trust, 1.750%, 12/15/26 (±) | USD | 1,591 | 1,759,884 | |||||||
| Peloton Interactive, Inc., 0.000%, 02/15/26 (±) | USD | 126 | 107,415 | |||||||
| PennyMac Corp.: | ||||||||||
| 5.500%, 11/01/24 (±) | USD | 1,235 | 1,239,631 | |||||||
| 5.500%, 03/15/26 (±) | USD | 1,630 | 1,597,400 | |||||||
| PetIQ, Inc., 4.000%, 06/01/26 (±) | USD | 694 | 813,563 | |||||||
| Porch Group, Inc., 0.750%, 09/15/26 (±) | USD | 1,048 | 1,004,822 | |||||||
| PRA Group, Inc., 3.500%, 06/01/23 (±) | USD | 1,831 | 2,141,126 | |||||||
| Pure Storage, Inc., 0.125%, 04/15/23 (±) | USD | 326 | 436,025 | |||||||
| Radius Global Infrastructure, Inc., 2.500%, 09/15/26 (±) | USD | 1,142 | 1,144,040 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 25
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| Rapid7, Inc., 0.250%, 03/15/27 (±) | USD | 803 | $ | 1,038,921 | ||||||
| Realogy Group LLC, 0.250%, 06/15/26 (±) | USD | 893 | 883,582 | |||||||
| Redfin Corp., 0.500%, 04/01/27 (±) | USD | 1,424 | 1,162,126 | |||||||
| Redwood Trust, Inc., 4.750%, 08/15/23 (±) | USD | 2,114 | 2,178,741 | |||||||
| Revance Therapeutics, Inc., 1.750%, 02/15/27 (±) | USD | 1,455 | 1,284,947 | |||||||
| RingCentral, Inc., 0.000%, 03/01/25 (±) | USD | 701 | 662,066 | |||||||
| Royal Caribbean Cruises, Ltd., 2.875%, 11/15/23 (±) | USD | 1,485 | 1,756,755 | |||||||
| Shift Technologies, Inc., 4.750%, 05/15/26 (±) | USD | 1,089 | 881,809 | |||||||
| SmileDirectClub, Inc., 0.000%, 02/01/26 (±) | USD | 1,272 | 496,843 | |||||||
| SoFi Technologies, Inc., 0.010%, 10/15/26 (±) | USD | 1,044 | 1,083,202 | |||||||
| Spirit Airlines, Inc., 1.000%, 05/15/26 (±) | USD | 986 | 854,902 | |||||||
| Splunk, Inc., 1.125%, 06/15/27 (±) | USD | 1,305 | 1,223,438 | |||||||
| Starwood Property Trust, Inc., 4.375%, 04/01/23 (±) | USD | 1,176 | 1,237,034 | |||||||
| Stride, Inc., 1.125%, 09/01/27 (±) | USD | 1,176 | 1,149,978 | |||||||
| Summit Hotel Properties, Inc., 1.500%, 02/15/26 (±) | USD | 1,250 | 1,310,000 | |||||||
| Sunnova Energy International, Inc., 0.250%, 12/01/26 (±) | USD | 1,256 | 1,306,303 | |||||||
| SunPower Corp., 4.000%, 01/15/23 (±) | USD | 861 | 1,004,399 | |||||||
| Tabula Rasa HealthCare, Inc., 1.750%, 02/15/26 (±) | USD | 702 | 583,573 | |||||||
| TechTarget, Inc., 0.000%, 12/15/26 (±) | USD | 617 | 616,260 | |||||||
The accompanying notes are an integral part of these financial statements.
26 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| The Beauty Health Co., 1.250%, 10/01/26 (±) | USD | 933 | $ | 992,809 | ||||||
| The Chefs’ Warehouse, Inc.: | ||||||||||
| 1.875%, 12/01/24 (±) | USD | 532 | 568,908 | |||||||
| 1.875%, 12/01/24 (#), (±) | USD | 1,938 | 2,072,449 | |||||||
| The Greenbrier Cos., Inc., 2.875%, 04/15/28 (±) | USD | 1,449 | 1,583,032 | |||||||
| The Marcus Corp., 5.000%, 09/15/25 (±) | USD | 718 | 1,318,427 | |||||||
| Two Harbors Investment Corp., 6.250%, 01/15/26 (±) | USD | 1,187 | 1,201,838 | |||||||
| Upstart Holdings, Inc., 0.250%, 08/15/26 (±) | USD | 865 | 830,400 | |||||||
| Upwork, Inc., 0.250%, 08/15/26 (±) | USD | 528 | 486,287 | |||||||
| Varex Imaging Corp., 4.000%, 06/01/25 (±) | USD | 1,307 | 2,177,789 | |||||||
| Veritone, Inc., 1.750%, 11/15/26 (±) | USD | 603 | 578,316 | |||||||
| Vishay Intertechnology, Inc., 2.250%, 06/15/25 (±) | USD | 1,547 | 1,603,156 | |||||||
| Vroom, Inc., 0.750%, 07/01/26 (±) | USD | 1,359 | 856,170 | |||||||
| Wayfair, Inc., 0.625%, 10/01/25 (±) | USD | 1,569 | 1,434,419 | |||||||
| Zogenix, Inc., 2.750%, 10/01/27 (±) | USD | 1,458 | 1,443,857 | |||||||
| 150,075,193 | ||||||||||
| Total Convertible Corporate Bonds (Cost $171,350,301) | 166,310,888 | |||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 27
| Description | Counterparty | Number of Contracts | Exercise Price | Notional Amount | Fair Value |
|||||||||||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||||||||||||
| Purchased Options | 0.0% | ||||||||||||||||||||
| Call | ||||||||||||||||||||
| Amyris, Inc., Expires 03/18/22 | MSC | 110 | $ | 10 | $ | 11,000 | $ | 1,980 | ||||||||||||
| Avaya Holdings, Corp., Expires 01/21/22 | MSC | 20 | 22.5 | 2,000 | 500 | |||||||||||||||
| Carnival Corp., Expires 01/21/22 | MSC | 8 | 30 | 800 | 8 | |||||||||||||||
| Cinemark Holdings, Inc., Expires 01/21/22 | MSC | 15 | 25 | 1,500 | 30 | |||||||||||||||
| Gol Linhas Aereas Inteligentes SA, Expires 01/21/22 | MSC | 23 | 9 | 2,300 | 115 | |||||||||||||||
| Helix Energy Solutions Group, Inc., Expires 02/18/22 | MSC | 79 | 4 | 7,900 | 1,106 | |||||||||||||||
| Norwegian Cruise Line Holdings, Ltd., Expires 02/18/22 | MSC | 120 | 27.5 | 12,000 | 2,520 | |||||||||||||||
| Norwegian Cruise Line Holdings, Ltd., Expires 01/21/22 | MSC | 76 | 32.5 | 7,600 | 76 | |||||||||||||||
| Royal Caribbean Cruises, Ltd., Expires 02/18/22 | MSC | 20 | 80 | 2,000 | 8,320 | |||||||||||||||
| Spirit Airlines, Inc., Expires 01/21/22 | MSC | 8 | 30 | 800 | 24 | |||||||||||||||
| Sunpower Corp., Expires 01/21/22 | MSC | 20 | 22 | 2,000 | 1,540 | |||||||||||||||
| Sunpower Corp., Expires 01/21/22 | MSC | 20 | 23 | 2,000 | 1,120 | |||||||||||||||
| Upstart Holdings, Inc., Expires 02/18/22 | MSC | 4 | 200 | 400 | 2,312 | |||||||||||||||
| Put | ||||||||||||||||||||
| American Airlines Group, Inc., Expires 01/20/23 | MSC | 7 | 10 | 700 | 420 | |||||||||||||||
| Cinemark Holdings, Inc., Expires 01/21/22 | MSC | 33 | 10 | 3,300 | 165 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
28 Annual Report
| Description | Counterparty | Number of Contracts | Exercise Price | Notional Amount | Fair Value |
|||||||||||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||||||||||||
| iShares Russell 2000 ETF, Expires 01/21/22 | MSC | 126 | $ | 210 | $ | 12,600 | $ | 13,860 | ||||||||||||
| Total Purchased Options (Cost $75,929) | 34,096 | |||||||||||||||||||
| Description | Shares | Fair Value |
||||||
| Short-Term Investments | 26.1% | ||||||||
| State
Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $38,250,299) | 38,250,299 | $ | 38,250,299 | |||||
| Total Investments excluding Securities Sold Short
| 139.7% (Cost $209,876,817) | $ | 204,793,016 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 29
| Description | Shares | Fair Value | ||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
| Securities Sold Short | (42.8)% | ||||||||
| Common Stocks | (34.0)% | ||||||||
| Australia | (0.1)% | ||||||||
| Zip Co., Ltd. | (22,985 | ) | $ | (72,472 | ) | |||
| Austria | (0.1)% | ||||||||
| ams AG | (8,378 | ) | (151,557 | ) | ||||
| Brazil | 0.0% | ||||||||
| Gol Linhas Aereas Inteligentes SA ADR | (8,249 | ) | (49,907 | ) | ||||
| Canada | (0.8)% | ||||||||
| Canopy Growth Corp. | (2,030 | ) | (17,717 | ) | ||||
| Dye & Durham, Ltd. | (6,012 | ) | (213,304 | ) | ||||
| Ivanhoe Mines, Ltd., Class A | (75,958 | ) | (619,698 | ) | ||||
| Lithium Americas Corp. | (5,116 | ) | (148,978 | ) | ||||
| NFI Group, Inc. | (6,101 | ) | (97,716 | ) | ||||
| Osisko Gold Royalties, Ltd. | (1,296 | ) | (15,860 | ) | ||||
| Pretium Resources, Inc. | (578 | ) | (8,144 | ) | ||||
| (1,121,417 | ) | |||||||
| China | (0.8)% | ||||||||
| Li Auto, Inc. ADR | (29,931 | ) | (960,785 | ) | ||||
| NIO, Inc. ADR | (5,650 | ) | (178,992 | ) | ||||
| (1,139,777 | ) | |||||||
| Israel | (0.1)% | ||||||||
| Camtek, Ltd. | (1,926 | ) | (88,673 | ) | ||||
| Italy | (0.1)% | ||||||||
| Kaleyra, Inc. | (13,058 | ) | (131,102 | ) | ||||
| Netherlands | 0.0% | ||||||||
| Pharming Group NV | (57,600 | ) | (50,534 | ) | ||||
| Saudi Arabia | (0.3)% | ||||||||
| Delivery Hero SE | (4,299 | ) | (479,971 | ) | ||||
The accompanying notes are an integral part of these financial statements.
30 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
| Taiwan | (0.1)% | ||||||||
| Sea, Ltd. ADR | (785 | ) | $ | (175,612 | ) | |||
| United Kingdom | (0.1)% | ||||||||
| Just Eat Takeaway.com NV | (1,668 | ) | (89,975 | ) | ||||
| United States | (31.5)% | ||||||||
| 1Life Healthcare, Inc. | (7,569 | ) | (132,987 | ) | ||||
| Aerie Pharmaceuticals, Inc. | (6,425 | ) | (45,103 | ) | ||||
| Affirm Holdings, Inc. | (2,742 | ) | (275,736 | ) | ||||
| Air Transport Services Group, Inc. | (17,357 | ) | (509,949 | ) | ||||
| Airbnb, Inc., Class A | (695 | ) | (115,711 | ) | ||||
| Alphatec Holdings, Inc. | (22,180 | ) | (253,517 | ) | ||||
| Alteryx, Inc., Class A | (849 | ) | (51,364 | ) | ||||
| Amyris, Inc. | (75,612 | ) | (409,061 | ) | ||||
| Arbor Realty Trust, Inc. REIT | (13,823 | ) | (253,237 | ) | ||||
| Array Technologies, Inc. | (25,508 | ) | (400,221 | ) | ||||
| Atlas Air Worldwide Holdings, Inc. | (23,787 | ) | (2,238,832 | ) | ||||
| Avadel Pharmaceuticals PLC ADR | (68,564 | ) | (553,997 | ) | ||||
| Avaya Holdings Corp. | (19,735 | ) | (390,753 | ) | ||||
| Avid Bioservices, Inc. | (38,642 | ) | (1,127,574 | ) | ||||
| Bentley Systems, Inc., Class B | (1,512 | ) | (73,075 | ) | ||||
| Beyond Meat, Inc. | (1,389 | ) | (90,507 | ) | ||||
| BioMarin Pharmaceutical, Inc. | (1,803 | ) | (159,295 | ) | ||||
| Blackline, Inc. | (3,866 | ) | (400,286 | ) | ||||
| Braemar Hotels & Resorts, Inc. REIT | (49,691 | ) | (253,424 | ) | ||||
| Century Aluminum Co. | (27,673 | ) | (458,265 | ) | ||||
| Charter Communications, Inc., Class A | (899 | ) | (586,121 | ) | ||||
| Chegg, Inc. | (971 | ) | (29,810 | ) | ||||
| Cinemark Holdings, Inc. | (42,978 | ) | (692,805 | ) | ||||
| Coherus Biosciences, Inc. | (49,703 | ) | (793,260 | ) | ||||
| Collegium Pharmaceutical, Inc. | (24,972 | ) | (466,477 | ) | ||||
| Confluent, Inc. Class A | (9,000 | ) | (686,160 | ) | ||||
| CSG Systems International, Inc. | (6,857 | ) | (395,100 | ) | ||||
| Cutera, Inc. | (25,832 | ) | (1,067,378 | ) | ||||
| Danimer Scientific, Inc. | (31,419 | ) | (267,690 | ) | ||||
| DigitalOcean Holdings, Inc. | (1,048 | ) | (84,186 | ) | ||||
| DISH Network Corp., Class A | (5,465 | ) | (177,285 | ) | ||||
| DraftKings, Inc., Class A | (663 | ) | (18,213 | ) | ||||
The accompanying notes are an integral part of these financial statements.
Annual Report 31
| Description | Shares | Fair Value | ||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
| Dynavax Technologies Corp. | (51,047 | ) | $ | (718,231 | ) | |||
| Encore Capital Group, Inc. | (8,604 | ) | (534,394 | ) | ||||
| Everbridge, Inc. | (1,288 | ) | (86,721 | ) | ||||
| EZCORP, Inc. Class A | (52,753 | ) | (388,790 | ) | ||||
| Fastly, Inc., Class A | (6,108 | ) | (216,529 | ) | ||||
| Fisker, Inc. | (39,041 | ) | (614,115 | ) | ||||
| Fiverr International, Ltd. | (2,323 | ) | (264,125 | ) | ||||
| fuboTV, Inc. | (10,109 | ) | (156,892 | ) | ||||
| Gossamer Bio, Inc. | (48,481 | ) | (548,320 | ) | ||||
| Groupon, Inc. | (9,444 | ) | (218,723 | ) | ||||
| Guess?, Inc. | (6,082 | ) | (144,022 | ) | ||||
| Helix Energy Solutions Group, Inc. | (119,742 | ) | (373,595 | ) | ||||
| Herbalife Nutrition, Ltd. | (9,168 | ) | (375,246 | ) | ||||
| I3 Verticals, Inc., Class A | (9,870 | ) | (224,937 | ) | ||||
| Innoviva, Inc. | (57,438 | ) | (990,806 | ) | ||||
| Inotiv, Inc. | (16,127 | ) | (678,463 | ) | ||||
| Insmed, Inc. | (32,963 | ) | (897,912 | ) | ||||
| Intercept Pharmaceuticals, Inc. | (55,780 | ) | (908,656 | ) | ||||
| Ionis Pharmaceuticals, Inc. | (6,981 | ) | (212,432 | ) | ||||
| JetBlue Airways Corp. | (5,299 | ) | (75,458 | ) | ||||
| Karyopharm Therapeutics, Inc. | (33,292 | ) | (214,068 | ) | ||||
| KKR Real Estate Finance Trust, Inc. REIT | (2,222 | ) | (46,284 | ) | ||||
| LendingTree, Inc. | (764 | ) | (93,666 | ) | ||||
| Ligand Pharmaceuticals, Inc. | (1,175 | ) | (181,491 | ) | ||||
| Lucid Group, Inc. | (13,046 | ) | (496,400 | ) | ||||
| Luminar Technologies, Inc. | (13,341 | ) | (225,596 | ) | ||||
| Magnite, Inc. | (11,689 | ) | (204,558 | ) | ||||
| Mandiant, Inc. | (27,169 | ) | (476,544 | ) | ||||
| MannKind Corp. | (177,794 | ) | (776,960 | ) | ||||
| Mesa Laboratories, Inc. | (351 | ) | (115,160 | ) | ||||
| MicroStrategy, Inc., Class A | (329 | ) | (179,137 | ) | ||||
| Mitek Systems, Inc. | (36,187 | ) | (642,319 | ) | ||||
| MP Materials Corp. | (14,926 | ) | (677,939 | ) | ||||
| NanoString Technologies, Inc. | (2,796 | ) | (118,075 | ) | ||||
| Norwegian Cruise Line Holdings, Ltd. | (30,031 | ) | (622,843 | ) | ||||
| Nutanix, Inc., Class A | (10,249 | ) | (326,533 | ) | ||||
| NuVasive, Inc. | (4,758 | ) | (249,700 | ) | ||||
| Omeros Corp. | (41,775 | ) | (268,613 | ) | ||||
| Opendoor Technologies, Inc. REIT | (48,975 | ) | (715,525 | ) | ||||
The accompanying notes are an integral part of these financial statements.
32 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
| OSI Systems, Inc. | (4,222 | ) | $ | (393,490 | ) | |||
| Pacira BioSciences, Inc. | (5,247 | ) | (315,712 | ) | ||||
| PAR Technology Corp. | (8,263 | ) | (436,039 | ) | ||||
| Patrick Industries, Inc. | (977 | ) | (78,834 | ) | ||||
| Pebblebrook Hotel Trust REIT | (4,915 | ) | (109,949 | ) | ||||
| Peloton Interactive, Inc., Class A | (63 | ) | (2,253 | ) | ||||
| PennyMac Mortgage Investment Trust REIT | (1,425 | ) | (24,695 | ) | ||||
| PetIQ, Inc. | (15,600 | ) | (354,276 | ) | ||||
| Porch Group, Inc. | (27,776 | ) | (433,028 | ) | ||||
| PRA Group, Inc. | (23,364 | ) | (1,173,106 | ) | ||||
| Pure Storage, Inc., Class A | (8,985 | ) | (292,462 | ) | ||||
| Radius Global Infrastructure, Inc. | (32,642 | ) | (525,536 | ) | ||||
| Rapid7, Inc. | (6,069 | ) | (714,261 | ) | ||||
| Realogy Holdings Corp. | (23,744 | ) | (399,137 | ) | ||||
| Redfin Corp. | (7,960 | ) | (305,584 | ) | ||||
| Redwood Trust, Inc. | (8,653 | ) | (114,133 | ) | ||||
| Revance Therapeutics, Inc. | (28,643 | ) | (467,454 | ) | ||||
| RingCentral, Inc., Class A | (638 | ) | (119,529 | ) | ||||
| Royal Caribbean Cruises, Ltd. | (11,549 | ) | (888,118 | ) | ||||
| Shift Technologies, Inc. | (91,485 | ) | (311,964 | ) | ||||
| Sirius XM Holdings, Inc. | (12,034 | ) | (76,416 | ) | ||||
| SmileDirectClub, Inc. | (69,726 | ) | (163,856 | ) | ||||
| SoFi Technologies, Inc. | (31,364 | ) | (495,865 | ) | ||||
| Spirit Airlines, Inc. | (7,715 | ) | (168,573 | ) | ||||
| Splunk, Inc. | (797 | ) | (92,229 | ) | ||||
| Starwood Property Trust, Inc. REIT | (8,318 | ) | (202,127 | ) | ||||
| Stride, Inc. | (14,716 | ) | (490,484 | ) | ||||
| Summit Hotel Properties, Inc. REIT | (64,158 | ) | (626,182 | ) | ||||
| Sunnova Energy International, Inc. | (28,938 | ) | (807,949 | ) | ||||
| SunPower Corp. | (20,883 | ) | (435,828 | ) | ||||
| Tabula Rasa HealthCare, Inc. | (3,500 | ) | (52,500 | ) | ||||
| TechTarget, Inc. | (3,031 | ) | (289,945 | ) | ||||
| The Beauty Health Co. | (8,185 | ) | (197,750 | ) | ||||
| The Chefs’ Warehouse, Inc. | (32,878 | ) | (1,094,837 | ) | ||||
| The Greenbrier Cos., Inc. | (2,456 | ) | (112,706 | ) | ||||
| The Marcus Corp. | (58,628 | ) | (1,047,096 | ) | ||||
| Upstart Holdings, Inc. | (1,798 | ) | (272,037 | ) | ||||
| Upwork, Inc. | (4,818 | ) | (164,583 | ) | ||||
| Varex Imaging Corp. | (55,651 | ) | (1,755,789 | ) | ||||
The accompanying notes are an integral part of these financial statements.
Annual Report 33
| Description | Shares | Fair Value | ||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
| Veritone, Inc. | (10,775 | ) | $ | (242,222 | ) | |||
| Vishay Intertechnology, Inc. | (7,222 | ) | (157,945 | ) | ||||
| Vroom, Inc. | (11,004 | ) | (118,733 | ) | ||||
| Wayfair, Inc., Class A | (1,596 | ) | (303,192 | ) | ||||
| Zogenix, Inc. | (42,983 | ) | (698,474 | ) | ||||
| (46,244,035 | ) | |||||||
| Total Common Stock (Proceeds $53,189,810) | (49,795,032 | ) | ||||||
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| US Treasury Securities | (8.8)% | ||||||||||
| United States | (8.8)% | ||||||||||
| U.S. Treasury Bills 0.000%, 01/25/22 | USD | (11,745,000 | ) | $ | (11,744,865 | ) | ||||
| U.S. Treasury Note 1.375%, 11/15/31 | USD | (1,200,000 | ) | (1,184,813 | ) | |||||
| (Proceeds $12,936,897) | (12,929,678 | ) | ||||||||
| Total Securities Sold Short (Proceeds $66,126,707) | (62,724,710 | ) | ||||||||
| Total Investments | 96.9% (Cost and short proceeds $143,750,110) (») | 142,068,306 | |||||||||
| Cash and Other Assets in Excess of Liabilities | 3.1% | 4,542,742 | |||||||||
| Net Assets | 100.0% | $ | 146,611,048 | ||||||||
The accompanying notes are an integral part of these financial statements.
34 Annual Report
Lazard Enhanced Opportunities Portfolio (continued)
Forward Currency Contracts open at December 31, 2021:
| Currency Purchased |
Quantity | Currency Sold |
Quantity | Counterparty | Settlement Date |
Unrealized Depreciation |
|||||||||
| USD | 1,062,995 | AUD | 1,486,000 | SSB | 03/24/22 | $ | 18,366 | ||||||||
| USD | 1,695,439 | CAD | 2,173,000 | SSB | 03/24/22 | 22,102 | |||||||||
| USD | 3,635,902 | EUR | 3,214,000 | SSB | 03/24/22 | 29,309 | |||||||||
| Total gross unrealized depreciation on Forward Currency Contracts | $ | 69,777 | |||||||||||||
Written Options open at December 31, 2021:
| Description | Counterparty | Number of Contracts | Strike Price | Expiration Date | Notional Amount | Premiums | Fair Value | |||||||||||||||||||
| Put | ||||||||||||||||||||||||||
| Amyris, Inc. | MSC | 10 | $ | 6.00 | 03/18/22 | $ | 1000 | $ | 577 | $ | (1,350 | ) | ||||||||||||||
| Carnival Corp. | MSC | 3 | 22.50 | 01/21/22 | 300 | 309 | (780 | ) | ||||||||||||||||||
| Cinemark Holdings, Inc. | MSC | 15 | 15.00 | 01/21/22 | 1500 | 1,276 | (750 | ) | ||||||||||||||||||
| Gol Linhas Aereas Inteligentes SA | MSC | 23 | 7.00 | 01/21/22 | 2300 | 1,179 | (2,645 | ) | ||||||||||||||||||
| iShares Russell 2000 ETF | MSC | 126 | 195.00 | 01/21/22 | 12600 | 5,805 | (3,402 | ) | ||||||||||||||||||
| Norwegian Cruise Line Holdings, Ltd. | MSC | 19 | 20.00 | 02/18/22 | 1900 | 1,876 | (2,489 | ) | ||||||||||||||||||
| Royal Caribbean Cruises, Ltd. | MSC | 20 | 65.00 | 02/18/22 | 2000 | 7,590 | (3,240 | ) | ||||||||||||||||||
| SunPower Corp. | MSC | 40 | 20.00 | 01/21/22 | 4000 | 5,166 | (2,720 | ) | ||||||||||||||||||
| SunPower Corp. | MSC | 52 | 23.00 | 01/21/22 | 5200 | 5,164 | (14,196 | ) | ||||||||||||||||||
| Total Written Options | 308 | $ | 28,942 | $ | (31,572 | ) | ||||||||||||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 35
Lazard Enhanced Opportunities Portfolio (continued)
Total Return Swap Agreements open at December 31, 2021:
| Currency | Counterparty | Notional Amount |
Expiration Date |
Reference Entity^ | Rate* | Unrealized Appreciation |
Unrealized Depreciation | ||||||||||||
| USD | BOA | $ 23,789 | 10/21/22 | ApolloCommercial Real Estate Finance, Inc. | 0.08 | % | $ | 3,037 | $ | — | |||||||||
| USD | BOA | 840,290 | 10/21/22–10/27/22 | Arbor Realty Trust, Inc. | 0.08 | 67,315 | — | ||||||||||||
| USD | BOA | 149,009 | 10/21/22–10/27/22 | Bentley Systems, Inc., Class B | 0.08 | 25,526 | — | ||||||||||||
| USD | BOA | 125,046 | 09/30/22 | Beyond Meat, Inc. | 0.08 | 47,636 | — | ||||||||||||
| USD | BOA | 409,192 | 09/26/22–09/30/22 | Cinemark Holdings, Inc. | 0.08 | 59,082 | — | ||||||||||||
| USD | BOA | 409,795 | 10/25/22 | CSG Systems International, Inc. | 0.08 | — | 55,313 | ||||||||||||
| USD | BOA | 253,109 | 09/30/22 | Fisker, Inc. | 0.08 | — | 18,706 | ||||||||||||
| USD | BOA | 58,394 | 09/26/22 | Gol Linhas Aereas Inteligentes SA ADR | 0.08 | 15,402 | — | ||||||||||||
| USD | BOA | 526,119 | 10/21/22–10/27/22 | Guess?, Inc. | 0.08 | — | 85,109 | ||||||||||||
| USD | BOA | 168,677 | 09/30/22–10/27/22 | Hope Bancorp, Inc. | 0.08 | — | 2,826 | ||||||||||||
| USD | BOA | 82,501 | 09/30/22 | Kaleyra, Inc. | 0.08 | 7,251 | — | ||||||||||||
| USD | BOA | 260,280 | 09/26/22–10/27/22 | KKR Real Estate Finance Trust, Inc. REIT | 0.08 | 14,047 | — | ||||||||||||
| USD | BOA | 471,194 | 09/26/22–10/27/22 | Mesa Laboratories, Inc. | 0.08 | — | 26,847 | ||||||||||||
| USD | BOA | 282,571 | 09/30/22 | MP Materials Corp. | 0.08 | — | 115,672 | ||||||||||||
| USD | BOA | 350,743 | 10/25/22 | Patrick Industries, Inc. | 0.08 | — | 5,665 | ||||||||||||
| USD | BOA | 889,931 | 09/26/22–10/21/22 | Pebblebrook Hotel Trust REIT | 0.08 | 11,515 | — | ||||||||||||
| USD | BOA | 540,020 | 10/21/22–10/27/22 | PennyMac Mortgage Investment Trust REIT | 0.08 | 69,388 | — | ||||||||||||
| USD | BOA | 140,467 | 09/26/22–10/21/22 | Redwood Trust, Inc. | 0.08 | — | 2,966 | ||||||||||||
| USD | BOA | 888,954 | 09/26/22–10/21/22 | Sirius XM holdings, Inc. | 0.08 | — | 37,874 | ||||||||||||
| USD | BOA | 141,921 | 10/21/22–10/27/22 | Starwood Property Trust, Inc. | 0.08 | 5,508 | — | ||||||||||||
The accompanying notes are an integral part of these financial statements.
36 Annual Report
Lazard Enhanced Opportunities Portfolio (concluded)
Total Return Swap Agreements open at December 31, 2021:
| Currency | Counterparty | Notional
Amount |
Expiration Date |
Reference Entity^ | Rate* | Unrealized Appreciation |
Unrealized Depreciation | ||||||||||||
| USD | BOA | $313,869 | 09/30/22 | The Beauty Health Co. | 0.08 | % | $ | 21,847 | $ | — | |||||||||
| USD | BOA | 703,515 | 9/26/22–10/21/22 | The Greenbrier Cos., Inc. | 0.08 | — | 9,340 | ||||||||||||
| USD | BOA | 311,301 | 09/26/22–10/21/22 | Two Harbors Investment Corp. | 0.08 | 35,446 | — | ||||||||||||
| USD | BOA | 151,336 | 09/26/22–11/01/22 | Vishay Intertechnology, Inc. | 0.08 | — | 14,985 | ||||||||||||
| Total gross unrealized appreciation/depreciation on Total Return Swap Agreements | $ | 383,000 | $ | 375,303 | |||||||||||||||
| ^ | The Portfolio receives depreciation of the referenced entity |
| * | The Portfolio pays appreciation and dividends, as well as financing charges at the referenced rate |
The accompanying notes are an integral part of these financial statements.
Annual Report 37
The accompanying notes are an integral part of these financial statements.
38 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Tourmaline Oil Corp. | 1,079 | $ | 34,837 | |||||
| Vermilion Energy, Inc. (*) | 1,443 | 18,138 | ||||||
| 391,950 | ||||||||
| China | 0.5% | ||||||||
| indie Semiconductor, Inc. Class A (*) | 300 | 3,597 | ||||||
| NXP Semiconductors NV | 237 | 53,984 | ||||||
| SITC International Holdings Co., Ltd. | 7,000 | 25,336 | ||||||
| 82,917 | ||||||||
| Denmark | 0.7% | ||||||||
| AP Moller-Maersk A/S, Class B | 4 | 14,356 | ||||||
| Carlsberg A/S, Class B Sponsored ADR | 1,332 | 46,247 | ||||||
| Novo Nordisk A/S, Class B | 565 | 63,164 | ||||||
| 123,767 | ||||||||
| France | 1.9% | ||||||||
| Arkema SA | 83 | 11,707 | ||||||
| BNP Paribas SA | 852 | 58,868 | ||||||
| Bureau Veritas SA ADR (*) | 488 | 32,613 | ||||||
| Cie de Saint-Gobain | 432 | 30,387 | ||||||
| Cie Generale des Etablissements Michelin SCA | 55 | 9,016 | ||||||
| Electricite de France SA | 2,285 | 26,853 | ||||||
| Hermes International | 2 | 3,492 | ||||||
| La Francaise des Jeux SAEM | 292 | 12,937 | ||||||
| Legrand SA ADR | 1,421 | 33,195 | ||||||
| LVMH Moet Hennessy Louis Vuitton SE ADR | 247 | 40,879 | ||||||
| Orange SA | 745 | 7,981 | ||||||
| Pernod Ricard SA Sponsored ADR | 782 | 37,911 | ||||||
| Societe Generale SA | 720 | 24,724 | ||||||
| 330,563 | ||||||||
| Germany | 1.1% | ||||||||
| adidas AG Sponsored ADR | 173 | 24,912 | ||||||
| Covestro AG | 283 | 17,463 | ||||||
| Deutsche Bank AG (*) | 2,118 | 26,584 | ||||||
| Deutsche Post AG | 1,243 | 80,008 | ||||||
| Merck KGaA Sponsored ADR | 850 | 44,285 | ||||||
| 193,252 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 39
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Hong Kong | 0.2% | ||||||||
| AIA Group, Ltd. Sponsored ADR | 765 | $ | 30,848 | |||||
| Orient Overseas International, Ltd. | 500 | 12,267 | ||||||
| 43,115 | ||||||||
| Israel | 0.3% | ||||||||
| Bank Hapoalim BM | 1,269 | 13,068 | ||||||
| Bank Leumi Le-Israel BM | 1,656 | 17,794 | ||||||
| Bezeq The Israeli Telecommunication Corp., Ltd. (*) | 1,668 | 2,758 | ||||||
| Perion Network, Ltd. (*) | 503 | 12,097 | ||||||
| ZIM Integrated Shipping Services, Ltd. | 202 | 11,890 | ||||||
| 57,607 | ||||||||
| Italy | 0.1% | ||||||||
| Banco BPM SpA | 3,870 | 11,602 | ||||||
| Japan | 4.1% | ||||||||
| Advance Residence Investment Corp. REIT | 4 | 13,236 | ||||||
| AGC, Inc. | 200 | 9,546 | ||||||
| Ajinomoto Co., Inc. | 100 | 3,040 | ||||||
| Chubu Electric Power Co., Inc. | 300 | 3,168 | ||||||
| CyberAgent, Inc. | 500 | 8,321 | ||||||
| Dai-ichi Life Holdings, Inc. | 1,600 | 32,325 | ||||||
| Daito Trust Construction Co., Ltd. | 55 | 6,283 | ||||||
| Daiwa House Industry Co., Ltd. | 900 | 25,884 | ||||||
| Daiwa Securities Living Investments Corp. REIT | 4 | 4,118 | ||||||
| DCM Holdings Co., Ltd. | 300 | 2,778 | ||||||
| Electric Power Development Co., Ltd. | 2,900 | 38,499 | ||||||
| ENEOS Holdings, Inc. | 9,800 | 36,684 | ||||||
| FUJIFILM Holdings Corp. | 100 | 7,413 | ||||||
| H.U. Group Holdings, Inc. | 400 | 10,136 | ||||||
| Hokkaido Electric Power Co., Inc. | 1,900 | 8,466 | ||||||
| Japan Post Bank Co., Ltd. | 4,300 | 39,440 | ||||||
| Japan Post Holdings Co., Ltd. | 5,400 | 42,147 | ||||||
| Japan Real Estate Investment Corp. REIT | 1 | 5,677 | ||||||
| KDDI Corp. | 1,000 | 29,229 | ||||||
| Kyushu Electric Power Co., Inc. | 600 | 4,477 | ||||||
| Lawson, Inc. | 100 | 4,732 | ||||||
| McDonald’s Holdings Co. Japan, Ltd. | 300 | 13,275 | ||||||
| Mitsubishi Electric Corp. | 4,800 | 60,867 | ||||||
The accompanying notes are an integral part of these financial statements.
40 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Mitsubishi UFJ Financial Group, Inc. | 2,100 | $ | 11,409 | |||||
| Mizuho Financial Group, Inc. | 2,560 | 32,561 | ||||||
| NGK Spark Plug Co., Ltd. | 600 | 10,449 | ||||||
| Nintendo Co., Ltd. ADR | 593 | 34,613 | ||||||
| Nippon Express Co., Ltd. (‡) | 100 | 6,007 | ||||||
| Nippon Telegraph & Telephone Corp. | 200 | 5,468 | ||||||
| Nissan Motor Co., Ltd. (*) | 1,900 | 9,182 | ||||||
| Nisshinbo Holdings, Inc. | 2,700 | 20,500 | ||||||
| Osaka Gas Co., Ltd. | 1,400 | 23,183 | ||||||
| Panasonic Corp. | 3,300 | 36,295 | ||||||
| Rengo Co., Ltd. | 400 | 3,025 | ||||||
| Shimano, Inc. ADR | 1,369 | 36,607 | ||||||
| Softbank Corp. | 700 | 8,852 | ||||||
| Sumitomo Chemical Co., Ltd. | 2,000 | 9,425 | ||||||
| Sumitomo Mitsui Financial Group, Inc. | 300 | 10,254 | ||||||
| Sumitomo Mitsui Trust Holdings, Inc. | 300 | 10,016 | ||||||
| Sumitomo Rubber Industries, Ltd. | 1,100 | 11,209 | ||||||
| The Hachijuni Bank, Ltd. | 900 | 3,073 | ||||||
| Tohoku Electric Power Co., Inc. | 800 | 5,687 | ||||||
| Tokyo Gas Co., Ltd. | 500 | 8,987 | ||||||
| Toyota Motor Corp. | 1,300 | 23,998 | ||||||
| Yamazaki Baking Co., Ltd. | 200 | 2,657 | ||||||
| 733,198 | ||||||||
| Malta | 0.0% | ||||||||
| Kindred Group PLC | 646 | 7,638 | ||||||
| Netherlands | 1.2% | ||||||||
| ASML Holding NV | 41 | 32,692 | ||||||
| Eurocommercial Properties NV REIT | 542 | 11,783 | ||||||
| EXOR NV | 161 | 14,331 | ||||||
| Flow Traders | 60 | 2,201 | ||||||
| Royal Dutch Shell PLC, A Shares | 2,126 | 46,648 | ||||||
| Wolters Kluwer NV | 106 | 12,459 | ||||||
| Wolters Kluwer NV Sponsored ADR | 726 | 85,770 | ||||||
| 205,884 | ||||||||
| New Zealand | 0.0% | ||||||||
| Fisher & Paykel Healthcare Corp., Ltd. | 131 | 2,938 | ||||||
| Mainfreight, Ltd. | 47 | 3,024 | ||||||
| 5,962 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 41
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Norway | 0.1% | ||||||||
| Orkla ASA | 794 | $ | 7,961 | |||||
| Telenor ASA | 174 | 2,738 | ||||||
| 10,699 | ||||||||
| South Africa | 0.1% | ||||||||
| Anglo American PLC | 626 | 25,624 | ||||||
| Spain | 0.2% | ||||||||
| Corporacion Financiera Alba SA | 19 | 1,109 | ||||||
| Industria de Diseno Textil SA ADR | 1,768 | 28,622 | ||||||
| 29,731 | ||||||||
| Sweden | 1.0% | ||||||||
| Assa Abloy AB ADR | 2,062 | 31,487 | ||||||
| Axfood AB | 230 | 6,613 | ||||||
| Epiroc AB ADR | 2,901 | 73,192 | ||||||
| Hexagon AB ADR | 3,737 | 59,306 | ||||||
| Lundin Energy AB | 249 | 8,929 | ||||||
| Telefonaktiebolaget LM Ericsson, B Shares | 574 | 6,305 | ||||||
| 185,832 | ||||||||
| Switzerland | 1.5% | ||||||||
| ABB, Ltd. Sponsored ADR | 1,394 | 53,209 | ||||||
| PSP Swiss Property AG | 63 | 7,842 | ||||||
| Roche Holding AG | 360 | 149,233 | ||||||
| Swatch Group AG ADR | 2,881 | 44,339 | ||||||
| Swisscom AG | 22 | 12,411 | ||||||
| Tecan Group AG | 6 | 3,648 | ||||||
| 270,682 | ||||||||
| United Kingdom | 2.7% | ||||||||
| AstraZeneca PLC | 82 | 9,555 | ||||||
| AstraZeneca PLC Sponsored ADR | 50 | 2,912 | ||||||
| Barclays PLC | 10,838 | 27,548 | ||||||
| BP PLC | 607 | 2,700 | ||||||
| Coca-Cola Europacific Partners PLC | 666 | 37,249 | ||||||
| Diageo PLC Sponsored ADR | 438 | 96,421 | ||||||
| Genus PLC | 45 | 3,002 | ||||||
| GlaxoSmithKline PLC | 244 | 5,306 | ||||||
| Howden Joinery Group PLC | 271 | 3,298 | ||||||
| HSBC Holdings PLC | 1,030 | 6,233 | ||||||
The accompanying notes are an integral part of these financial statements.
42 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Imperial Brands PLC | 660 | $ | 14,432 | |||||
| J Sainsbury PLC | 1,696 | 6,323 | ||||||
| Linde PLC | 42 | 14,550 | ||||||
| Lloyds Banking Group PLC | 15,528 | 10,011 | ||||||
| National Grid PLC | 389 | 5,613 | ||||||
| Natwest Group PLC | 7,589 | 23,124 | ||||||
| Prudential PLC ADR | 1,027 | 35,360 | ||||||
| RELX PLC Sponsored ADR | 2,060 | 67,177 | ||||||
| Rightmove PLC | 294 | 3,157 | ||||||
| Standard Chartered PLC | 5,243 | 31,688 | ||||||
| Unilever PLC Sponsored ADR | 1,130 | 60,783 | ||||||
| Virgin Money UK PLC (*) | 4,429 | 10,648 | ||||||
| 477,090 | ||||||||
| United States | 42.9% | ||||||||
| Accenture PLC, Class A | 350 | 145,092 | ||||||
| Activision Blizzard, Inc. | 61 | 4,058 | ||||||
| Acushnet Holdings Corp. | 58 | 3,079 | ||||||
| Adobe, Inc. (*) | 149 | 84,492 | ||||||
| Adtalem Global Education, Inc. (*) | 252 | 7,449 | ||||||
| Advanced Micro Devices, Inc. (*) | 262 | 37,702 | ||||||
| AGCO Corp. | 59 | 6,845 | ||||||
| Agilent Technologies, Inc. | 86 | 13,730 | ||||||
| Akamai Technologies, Inc. (*) | 26 | 3,043 | ||||||
| Alphabet, Inc., Class A (*) | 48 | 139,058 | ||||||
| Alphabet, Inc., Class C (*) | 49 | 141,786 | ||||||
| Amazon.com, Inc. (*) | 46 | 153,380 | ||||||
| Amdocs, Ltd. | 46 | 3,443 | ||||||
| AMERCO | 25 | 18,156 | ||||||
| Ameren Corp. | 46 | 4,094 | ||||||
| American Electric Power Co., Inc. | 72 | 6,406 | ||||||
| American Express Co. | 127 | 20,777 | ||||||
| AmerisourceBergen Corp. | 30 | 3,987 | ||||||
| Amgen, Inc. | 17 | 3,824 | ||||||
| AMN Healthcare Services, Inc. (*) | 48 | 5,872 | ||||||
| Amphenol Corp., Class A | 679 | 59,385 | ||||||
| Anthem, Inc. | 67 | 31,057 | ||||||
| Aon PLC, Class A | 364 | 109,404 | ||||||
| Apple, Inc. | 2,602 | 462,037 | ||||||
| Applied Materials, Inc. | 381 | 59,954 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 43
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Automatic Data Processing, Inc. | 63 | $ | 15,535 | |||||
| AutoZone, Inc. (*) | 18 | 37,735 | ||||||
| Avery Dennison Corp. | 145 | 31,403 | ||||||
| Bank of America Corp. | 1,000 | 44,490 | ||||||
| Becton, Dickinson & Co. | 20 | 5,030 | ||||||
| Berkshire Hathaway, Inc. Class B (*) | 37 | 11,063 | ||||||
| Bio-Rad Laboratories, Inc., Class A (*) | 5 | 3,778 | ||||||
| BJ’s Wholesale Club Holdings, Inc. (*) | 226 | 15,135 | ||||||
| Booz Allen Hamilton Holding Corp. | 108 | 9,157 | ||||||
| Boston Scientific Corp. (*) | 952 | 40,441 | ||||||
| Bristol-Myers Squibb Co. | 282 | 17,583 | ||||||
| Broadcom, Inc. | 80 | 53,233 | ||||||
| BRP, Inc. | 452 | 39,645 | ||||||
| Bruker Corp. | 136 | 11,412 | ||||||
| Brunswick Corp. | 107 | 10,778 | ||||||
| Builders FirstSource, Inc. (*) | 211 | 18,085 | ||||||
| Cable One, Inc. | 1 | 1,763 | ||||||
| Cadence Design Systems, Inc. (*) | 162 | 30,189 | ||||||
| Caterpillar, Inc. | 15 | 3,101 | ||||||
| Cboe Global Markets, Inc. | 260 | 33,904 | ||||||
| Cerner Corp. | 42 | 3,901 | ||||||
| CF Industries Holdings, Inc. | 56 | 3,964 | ||||||
| Charter Communications, Inc., Class A (*) | 70 | 45,638 | ||||||
| Chemed Corp. | 8 | 4,232 | ||||||
| Chubb, Ltd. | 20 | 3,866 | ||||||
| Church & Dwight Co., Inc. | 42 | 4,305 | ||||||
| Churchill Downs, Inc. | 40 | 9,636 | ||||||
| Cigna Corp. | 61 | 14,007 | ||||||
| Cirrus Logic, Inc. (*) | 35 | 3,221 | ||||||
| Cisco Systems, Inc. | 423 | 26,805 | ||||||
| Citigroup, Inc. | 396 | 23,914 | ||||||
| Citizens Financial Group, Inc. | 385 | 18,191 | ||||||
| Citrix Systems, Inc. | 39 | 3,689 | ||||||
| Cognizant Technology Solutions Corp., Class A | 718 | 63,701 | ||||||
| Cohen & Steers, Inc. | 150 | 13,876 | ||||||
| Colgate-Palmolive Co. | 250 | 21,335 | ||||||
| Comcast Corp., Class A | 699 | 35,181 | ||||||
| Corteva, Inc. | 556 | 26,288 | ||||||
| CorVel Corp. (*) | 16 | 3,328 | ||||||
The accompanying notes are an integral part of these financial statements.
44 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Costco Wholesale Corp. | 55 | $ | 31,223 | |||||
| Coterra Energy, Inc. | 994 | 18,886 | ||||||
| Crowdstrike Holdings, Inc., Class A (*) | 41 | 8,395 | ||||||
| Crown Castle International Corp. REIT | 19 | 3,966 | ||||||
| Cummins, Inc. | 55 | 11,998 | ||||||
| Cushman & Wakefield PLC (*) | 573 | 12,744 | ||||||
| CVS Health Corp. | 325 | 33,527 | ||||||
| D.R. Horton, Inc. | 58 | 6,290 | ||||||
| Darden Restaurants, Inc. | 71 | 10,695 | ||||||
| DaVita, Inc. (*) | 78 | 8,873 | ||||||
| Deere & Co. | 98 | 33,603 | ||||||
| Devon Energy Corp. | 739 | 32,553 | ||||||
| Diamondback Energy, Inc. | 220 | 23,727 | ||||||
| Dick’s Sporting Goods, Inc. | 72 | 8,279 | ||||||
| Discover Financial Services | 122 | 14,098 | ||||||
| DocuSign, Inc. (*) | 78 | 11,880 | ||||||
| Dolby Laboratories, Inc., Class A | 54 | 5,142 | ||||||
| Dollar General Corp. | 294 | 69,334 | ||||||
| Domino’s Pizza, Inc. | 8 | 4,515 | ||||||
| Dow, Inc. | 177 | 10,039 | ||||||
| DTE Energy Co. | 101 | 12,074 | ||||||
| Electronic Arts, Inc. | 22 | 2,902 | ||||||
| Eli Lilly & Co. | 287 | 79,275 | ||||||
| EPAM Systems, Inc. (*) | 33 | 22,059 | ||||||
| Equitable Holdings, Inc. | 234 | 7,673 | ||||||
| Evergy, Inc. | 85 | 5,832 | ||||||
| Exlservice Holdings, Inc. (*) | 32 | 4,633 | ||||||
| Expedia Group, Inc. (*) | 59 | 10,662 | ||||||
| Extra Space Storage, Inc. REIT | 28 | 6,348 | ||||||
| FactSet Research Systems, Inc. | 11 | 5,346 | ||||||
| FedEx Corp. | 38 | 9,828 | ||||||
| Fidelity National Financial, Inc. | 207 | 10,801 | ||||||
| Flagstar Bancorp, Inc. | 205 | 9,828 | ||||||
| Flowers Foods, Inc. | 322 | 8,845 | ||||||
| FNB Corp. | 883 | 10,711 | ||||||
| Fortinet, Inc. (*) | 65 | 23,361 | ||||||
| FOX Corp., Class A | 385 | 14,206 | ||||||
| FOX Corp., Class B | 1,099 | 37,663 | ||||||
| General Mills, Inc. | 123 | 8,288 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 45
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Gilead Sciences, Inc. | 96 | $ | 6,971 | |||||
| Grand Canyon Education, Inc. (*) | 39 | 3,343 | ||||||
| Haemonetics Corp. (*) | 44 | 2,334 | ||||||
| HCA Healthcare, Inc. | 184 | 47,273 | ||||||
| Home Depot, Inc. | 209 | 86,737 | ||||||
| Honeywell International, Inc. | 186 | 38,783 | ||||||
| Hormel Foods Corp. | 61 | 2,977 | ||||||
| IDEXX Laboratories, Inc. (*) | 118 | 77,698 | ||||||
| Incyte Corp. (*) | 197 | 14,460 | ||||||
| Ingles Markets, Inc. Class A | 45 | 3,885 | ||||||
| Intel Corp. | 855 | 44,032 | ||||||
| Intercontinental Exchange, Inc. | 663 | 90,678 | ||||||
| International Game Technology PLC | 325 | 9,396 | ||||||
| Intuit, Inc. | 119 | 76,543 | ||||||
| IQVIA Holdings, Inc. (*) | 423 | 119,345 | ||||||
| Jack Henry & Associates, Inc. | 38 | 6,346 | ||||||
| James Hardie Industries PLC | 446 | 17,951 | ||||||
| John Wiley & Sons, Inc. Class A | 72 | 4,123 | ||||||
| Johnson & Johnson | 709 | 121,289 | ||||||
| JPMorgan Chase & Co. | 133 | 21,061 | ||||||
| Kellogg Co. | 60 | 3,865 | ||||||
| Keysight Technologies, Inc. (*) | 103 | 21,271 | ||||||
| Kimco Realty Corp. REIT | 467 | 11,512 | ||||||
| KLA Corp. | 144 | 61,936 | ||||||
| Laboratory Corp. of America Holdings (*) | 119 | 37,391 | ||||||
| Laredo Petroleum, Inc. (*) | 170 | 10,222 | ||||||
| Laureate Education, Inc., Class A | 279 | 3,415 | ||||||
| Life Storage, Inc. REIT | 46 | 7,046 | ||||||
| Lockheed Martin Corp. | 213 | 75,702 | ||||||
| Louisiana-Pacific Corp. | 167 | 13,084 | ||||||
| Lowe’s Cos., Inc. | 348 | 89,951 | ||||||
| Magnolia Oil & Gas Corp., Class A | 501 | 9,454 | ||||||
| Manhattan Associates, Inc. (*) | 79 | 12,284 | ||||||
| Markel Corp. (*) | 3 | 3,702 | ||||||
| Match Group, Inc. (*) | 150 | 19,837 | ||||||
| Matson, Inc. | 44 | 3,961 | ||||||
| MaxLinear, Inc. (*) | 153 | 11,535 | ||||||
| McDonald’s Corp. | 314 | 84,174 | ||||||
| MDU Resources Group, Inc. | 397 | 12,243 | ||||||
The accompanying notes are an integral part of these financial statements.
46 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Medtronic PLC | 153 | $ | 15,828 | |||||
| Merck & Co., Inc. | 43 | 3,296 | ||||||
| Meta Platforms, Inc., Class A (*) | 82 | 27,581 | ||||||
| MetLife, Inc. | 414 | 25,871 | ||||||
| Mettler-Toledo International, Inc. (*) | 11 | 18,669 | ||||||
| Microsoft Corp. | 1,330 | 447,306 | ||||||
| Moderna, Inc. (*) | 22 | 5,588 | ||||||
| Monolithic Power Systems, Inc. | 9 | 4,440 | ||||||
| Moody’s Corp. | 132 | 51,557 | ||||||
| Motorola Solutions, Inc. | 380 | 103,246 | ||||||
| Netflix, Inc. (*) | 72 | 43,376 | ||||||
| Neurocrine Biosciences, Inc. (*) | 45 | 3,833 | ||||||
| New Jersey Resources Corp. | 81 | 3,326 | ||||||
| NewMarket Corp. | 8 | 2,742 | ||||||
| News Corp. Class A | 963 | 21,485 | ||||||
| NIKE, Inc., Class B | 331 | 55,168 | ||||||
| Northrop Grumman Corp. | 10 | 3,871 | ||||||
| NRG Energy, Inc. | 410 | 17,663 | ||||||
| Nucor Corp. | 299 | 34,131 | ||||||
| NVIDIA Corp. | 447 | 131,467 | ||||||
| Old Dominion Freight Line, Inc. | 128 | 45,873 | ||||||
| Omnicom Group, Inc. | 69 | 5,056 | ||||||
| Oracle Corp. | 309 | 26,948 | ||||||
| OSI Systems, Inc. (*) | 31 | 2,889 | ||||||
| Ovintiv, Inc. | 319 | 10,750 | ||||||
| Owens Corning | 100 | 9,050 | ||||||
| Paychex, Inc. | 309 | 42,178 | ||||||
| Paycom Software, Inc. (*) | 21 | 8,719 | ||||||
| PennyMac Financial Services, Inc. | 517 | 36,076 | ||||||
| PepsiCo, Inc. | 212 | 36,826 | ||||||
| Piedmont Office Realty Trust, Inc. REIT, Class A | 553 | 10,164 | ||||||
| Portland General Electric Co. | 55 | 2,911 | ||||||
| Premier, Inc., Class A | 92 | 3,788 | ||||||
| PTC, Inc. (*) | 360 | 43,614 | ||||||
| Public Storage REIT | 29 | 10,862 | ||||||
| QUALCOMM, Inc. | 431 | 78,817 | ||||||
| Quest Diagnostics, Inc. | 198 | 34,256 | ||||||
| Quidel Corp. (*) | 27 | 3,645 | ||||||
| Realty Income Corp. REIT | 223 | 15,965 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 47
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Red Rock Resorts, Inc., Class A | 180 | $ | 9,902 | |||||
| Regions Financial Corp. | 525 | 11,445 | ||||||
| Republic Services, Inc. | 366 | 51,039 | ||||||
| ResMed, Inc. | 21 | 5,470 | ||||||
| Rockwell Automation, Inc. | 146 | 50,932 | ||||||
| Roku, Inc. (*) | 24 | 5,477 | ||||||
| Ross Stores, Inc. | 118 | 13,485 | ||||||
| RPM International, Inc. | 95 | 9,595 | ||||||
| S&P Global, Inc. | 158 | 74,565 | ||||||
| SBA Communications Corp. REIT | 22 | 8,558 | ||||||
| Service Corp. International | 182 | 12,920 | ||||||
| ServiceNow, Inc. (*) | 21 | 13,631 | ||||||
| Sirius XM Holdings, Inc. | 504 | 3,200 | ||||||
| SLM Corp. | 1,282 | 25,217 | ||||||
| Southwest Gas Holdings, Inc. (*) | 72 | 5,044 | ||||||
| Starbucks Corp. | 45 | 5,264 | ||||||
| State Street Corp. | 316 | 29,388 | ||||||
| Synopsys, Inc. (*) | 329 | 121,236 | ||||||
| Target Corp. | 251 | 58,091 | ||||||
| Teradyne, Inc. | 80 | 13,082 | ||||||
| Tesla, Inc. (*) | 139 | 146,892 | ||||||
| Texas Instruments, Inc. | 320 | 60,310 | ||||||
| Texas Pacific Land Corp. | 6 | 7,493 | ||||||
| The Allstate Corp. | 77 | 9,059 | ||||||
| The Bank of New York Mellon Corp. | 182 | 10,571 | ||||||
| The Charles Schwab Corp. | 632 | 53,151 | ||||||
| The Coca-Cola Co. | 1,422 | 84,197 | ||||||
| The Hartford Financial Services Group, Inc. | 55 | 3,797 | ||||||
| The Hershey Co. | 141 | 27,279 | ||||||
| The Interpublic Group of Cos., Inc. | 93 | 3,483 | ||||||
| The J.M. Smucker Co. | 25 | 3,395 | ||||||
| The Kroger Co. | 77 | 3,485 | ||||||
| The Mosaic Co. | 329 | 12,926 | ||||||
| The New York Times Co. Class A | 61 | 2,946 | ||||||
| The Procter & Gamble Co. | 592 | 96,839 | ||||||
| The TJX Cos., Inc. | 45 | 3,416 | ||||||
| Thermo Fisher Scientific, Inc. | 190 | 126,776 | ||||||
| TopBuild Corp. (*) | 100 | 27,591 | ||||||
| Tractor Supply Co. | 130 | 31,018 | ||||||
The accompanying notes are an integral part of these financial statements.
48 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Trimble, Inc. (*) | 122 | $ | 10,637 | |||||
| Tyler Technologies, Inc. (*) | 7 | 3,766 | ||||||
| Tyson Foods, Inc., Class A | 313 | 27,281 | ||||||
| Ulta Beauty, Inc. (*) | 57 | 23,503 | ||||||
| United Parcel Service, Inc., Class B | 84 | 18,005 | ||||||
| United Therapeutics Corp. (*) | 28 | 6,050 | ||||||
| UnitedHealth Group, Inc. | 181 | 90,887 | ||||||
| Veeva Systems, Inc. Class A (*) | 47 | 12,008 | ||||||
| Verizon Communications, Inc. | 2,984 | 155,049 | ||||||
| Vertex Pharmaceuticals, Inc. (*) | 34 | 7,466 | ||||||
| Virtu Financial, Inc., Class A | 220 | 6,343 | ||||||
| Visa, Inc., Class A | 311 | 67,397 | ||||||
| Vista Outdoor, Inc. (*) | 97 | 4,469 | ||||||
| VMware, Inc., Class A | 25 | 2,897 | ||||||
| Walmart, Inc. | 566 | 81,895 | ||||||
| Warner Music Group Corp., Class A | 566 | 24,440 | ||||||
| Washington Federal, Inc. | 88 | 2,937 | ||||||
| Watts Water Technologies, Inc., Class A | 27 | 5,243 | ||||||
| WD-40 Co. | 29 | 7,095 | ||||||
| WEC Energy Group, Inc. | 52 | 5,048 | ||||||
| Westlake Chemical Corp. | 514 | 49,925 | ||||||
| Williams-Sonoma, Inc. | 78 | 13,192 | ||||||
| ZipRecruiter, Inc., Class A (*) | 100 | 2,494 | ||||||
| Zoetis, Inc. | 439 | 107,129 | ||||||
| 7,654,712 | ||||||||
| Total Common Stocks (Cost $7,740,372) | 11,056,925 | |||||||
| Preferred Stocks | 0.1% | ||||||||
| Germany | 0.1% | ||||||||
| Volkswagen AG (Cost $19,703) | 83 | 16,773 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 49
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Corporate Bonds | 12.7% | ||||||||||
| Canada | 0.5% | ||||||||||
| Canadian Imperial Bank of Commerce, 0.950%, 10/23/25 | USD | 90 | $ | 88,109 | ||||||
| Germany | 0.4% | ||||||||||
| Daimler AG, 0.750%, 09/10/30 | EUR | 65 | 76,030 | |||||||
| Netherlands | 0.7% | ||||||||||
| ING Groep NV MTN, 1.125% (SONIA + 0.905%), 12/07/28 (§) | GBP | 100 | 129,955 | |||||||
| Switzerland | 0.1% | ||||||||||
| ABB Finance USA, Inc., 4.375%, 05/08/42 | USD | 12 | 15,016 | |||||||
| United Kingdom | 0.5% | ||||||||||
| Unilever Capital Corp., 1.375%, 09/14/30 | USD | 100 | 94,817 | |||||||
| United States | 10.5% | ||||||||||
| Adobe, Inc., 2.300%, 02/01/30 | USD | 70 | 71,546 | |||||||
| Alphabet, Inc., 1.100%, 08/15/30 | USD | 75 | 70,894 | |||||||
| Amazon.com, Inc., 3.150%, 08/22/27 | USD | 70 | 75,601 | |||||||
| American Express Co., 3.300%, 05/03/27 | USD | 65 | 69,688 | |||||||
| Apple, Inc., 3.000%, 06/20/27 | USD | 70 | 74,996 | |||||||
| Ball Corp., 4.875%, 03/15/26 | USD | 35 | 38,552 | |||||||
The accompanying notes are an integral part of these financial statements.
50 Annual Report
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Bank of America Corp.: | ||||||||||
| 1.486% (SOFR + 1.460%), 05/19/24 (§) | USD | 35 | $ | 35,253 | ||||||
| 1.978% (CDOR 3 Month + 0.600%), 09/15/27 (§) | CAD | 75 | 58,605 | |||||||
| Citigroup, Inc., 1.281% (SOFR + 0.528%), 11/03/25 (§) | USD | 65 | 64,825 | |||||||
| Clean Harbors, Inc., 4.875%, 07/15/27 | USD | 35 | 36,050 | |||||||
| Constellation Brands, Inc., 4.250%, 05/01/23 | USD | 50 | 52,104 | |||||||
| DaVita, Inc., 4.625%, 06/01/30 | USD | 30 | 30,712 | |||||||
| Dell International LLC, 5.300%, 10/01/29 | USD | 75 | 87,915 | |||||||
| John Deere Financial, Inc., 2.410%, 01/14/25 | CAD | 90 | 72,510 | |||||||
| Johnson Controls International PLC, 1.750%, 09/15/30 | USD | 25 | 23,926 | |||||||
| JPMorgan Chase & Co., 3.540% (USD LIBOR 3 Month + 1.380%), 05/01/28 (§) | USD | 85 | 92,313 | |||||||
| Kimberly-Clark Corp., 3.200%, 04/25/29 | USD | 53 | 57,289 | |||||||
| McDonald’s Corp., 3.125%, 03/04/25 | CAD | 50 | 41,121 | |||||||
| Microsoft Corp., 3.500%, 11/15/42 | USD | 30 | 34,479 | |||||||
| Morgan Stanley, 3.625%, 01/20/27 | USD | 70 | 75,891 | |||||||
| Mueller Water Products, Inc., 4.000%, 06/15/29 (#) | USD | 35 | 35,350 | |||||||
| PepsiCo, Inc., 2.875%, 10/15/49 | USD | 30 | 31,455 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 51
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Pfizer,Inc., 2.625%, 04/01/30 | USD | 65 | $ | 68,482 | ||||||
| Prologis LP REIT, 1.250%, 10/15/30 | USD | 70 | 65,098 | |||||||
| Schneider Electric SE, 2.950%, 09/27/22 | USD | 50 | 50,878 | |||||||
| Service Corp. International, 4.625%, 12/15/27 | USD | 35 | 36,531 | |||||||
| Starbucks Corp., 4.450%, 08/15/49 | USD | 20 | 24,618 | |||||||
| The Goldman Sachs Group,Inc., 1.992% (SOFR + 1.090%), 01/27/32 (§) | USD | 70 | 67,114 | |||||||
| The Home Depot,Inc., 5.875%, 12/16/36 | USD | 45 | 63,738 | |||||||
| The Procter & Gamble Co., 1.200%, 10/29/30 | USD | 35 | 33,101 | |||||||
| Toyota Motor Credit Corp., 2.150%, 02/13/30 | USD | 70 | 70,146 | |||||||
| United Rentals North America,Inc., 4.875%, 01/15/28 | USD | 35 | 36,781 | |||||||
| Verizon Communications,Inc., 3.875%, 02/08/29 | USD | 84 | 93,087 | |||||||
| Visa,Inc., 0.750%, 08/15/27 | USD | 25 | 23,965 | |||||||
| 1,864,614 | ||||||||||
| Total Corporate Bonds (Cost $2,233,978) | 2,268,541 | |||||||||
| Fair | ||||||||||
| Description | Shares | Value | ||||||||
| Exchange-Traded Funds | 5.1% | ||||||||||
| iShares MSCI World ETF (Cost $566,538) | 6,723 | $ | 909,756 | |||||||
The accompanying notes are an integral part of these financial statements.
52 Annual Report
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Foreign Government Obligations | 13.5% | ||||||||||
| Australia | 0.8% | ||||||||||
| New South Wales Treasury Corp., 1.250%, 11/20/30 | AUD | 100 | $ | 68,577 | ||||||
| Queensland Treasury Corp., 1.250%, 03/10/31 | AUD | 100 | 68,524 | |||||||
| 137,101 | ||||||||||
| Bahamas | 0.4% | ||||||||||
| Commonwealth of Bahamas, 6.950%, 11/20/29 | USD | 80 | 69,015 | |||||||
| Canada | 1.6% | ||||||||||
| City of Vancouver, 2.900%, 11/20/25 | CAD | 55 | 45,705 | |||||||
| Export Development Canada, 1.650%, 07/31/24 | CAD | 90 | 71,846 | |||||||
| Province of British Columbia Canada, 3.200%, 06/18/44 | CAD | 35 | 31,477 | |||||||
| Province of Quebec: | ||||||||||
| 2.500%, 04/20/26 | USD | 55 | 57,619 | |||||||
| 1.850%, 02/13/27 | CAD | 105 | 84,168 | |||||||
| 290,815 | ||||||||||
| Chile | 1.1% | ||||||||||
| Bonos de la Tesoreria de la Republica en pesos, 2.300%, 10/01/28 | CLP | 85,000 | 82,181 | |||||||
| Republic of Chile, 0.830%, 07/02/31 | EUR | 100 | 113,657 | |||||||
| 195,838 | ||||||||||
| Colombia | 0.2% | ||||||||||
| Republic of Colombia, 9.850%, 06/28/27 | COP | 136,000 | 36,959 | |||||||
| Czech Republic | 1.0% | ||||||||||
| Czech Republic: | ||||||||||
| 1.000%, 06/26/26 | CZK | 1,400 | 57,898 | |||||||
| 2.000%, 10/13/33 | CZK | 2,800 | 117,426 | |||||||
| 175,324 | ||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 53
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Hungary | 1.0% | ||||||||||
| Hungary Government Bonds: | ||||||||||
| 2.750%, 12/22/26 | HUF | 17,990 | $ | 51,536 | ||||||
| 3.000%, 10/27/27 | HUF | 17,650 | 50,469 | |||||||
| 2.250%, 04/20/33 | HUF | 20,130 | 50,147 | |||||||
| Hungary Government International Bond, 1.750%, 06/05/35 | EUR | 25 | 29,565 | |||||||
| 181,717 | ||||||||||
| Italy | 0.5% | ||||||||||
| Italy Buoni Poliennali Del Tesoro, 1.450%, 03/01/36 | EUR | 75 | 85,456 | |||||||
| Mexico | 0.4% | ||||||||||
| Mexican Bonos, 7.500%, 06/03/27 | MXN | 1,250 | 61,287 | |||||||
| United Mexican States, 6.750%, 02/06/24 | GBP | 5 | 7,516 | |||||||
| 68,803 | ||||||||||
| New Zealand | 1.7% | ||||||||||
| Housing New Zealand, Ltd. MTN, 3.420%, 10/18/28 | NZD | 80 | 56,551 | |||||||
| New Zealand Local Government Funding Agency Bonds: | ||||||||||
| 2.250%, 04/15/24 | NZD | 175 | 119,886 | |||||||
| 1.500%, 04/20/29 | NZD | 165 | 102,932 | |||||||
| 2.000%, 04/15/37 | NZD | 55 | 31,794 | |||||||
| 311,163 | ||||||||||
| Norway | 0.6% | ||||||||||
| Oslo Kommune, 2.350%, 09/04/24 | NOK | 1,000 | 114,786 | |||||||
| Panama | 0.6% | ||||||||||
| Republic of Panama, 8.875%, 09/30/27 | USD | 85 | 114,474 | |||||||
The accompanying notes are an integral part of these financial statements.
54 Annual Report
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Peru | 0.5% | ||||||||||
| Peru Government Bonds: | ||||||||||
| 6.150%, 08/12/32 | PEN | 230 | $ | 57,897 | ||||||
| 3.000%, 01/15/34 | USD | 30 | 29,850 | |||||||
| 87,747 | ||||||||||
| Romania | 1.0% | ||||||||||
| Romanian Government Bonds: | ||||||||||
| 4.750%, 02/24/25 | RON | 435 | 100,248 | |||||||
| 3.650%, 09/24/31 | RON | 225 | 45,589 | |||||||
| 3.875%, 10/29/35 | EUR | 20 | 24,719 | |||||||
| 170,556 | ||||||||||
| Singapore | 0.4% | ||||||||||
| Singapore Government Bond, 3.375%, 09/01/33 | SGD | 75 | 64,183 | |||||||
| Spain | 0.5% | ||||||||||
| Spain Government Bond, 1.000%, 07/30/42 | EUR | 75 | 83,137 | |||||||
| Thailand | 0.3% | ||||||||||
| Thailand Government Bonds, 1.585%, 12/17/35 | THB | 2,190 | 59,667 | |||||||
| United Kingdom | 0.9% | ||||||||||
| United Kingdom Gilt: | ||||||||||
| 0.875%, 07/31/33 | GBP | 45 | 59,830 | |||||||
| 1.750%, 09/07/37 | GBP | 45 | 66,012 | |||||||
| 1.500%, 07/22/47 | GBP | 20 | 29,021 | |||||||
| 154,863 | ||||||||||
| Total Foreign Government Obligations (Cost $2,528,646) | 2,401,604 | |||||||||
| Quasi Government Bonds | 0.5% | ||||||||||
| Germany | 0.5% | ||||||||||
| Kreditanstalt fuer Wiederaufbau, 1.750%, 09/14/29 (Cost $92,003) | USD | 90 | 91,438 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 55
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Supranational Bonds | 3.0% | ||||||||||
| Asian Development Bank, 2.125%, 03/19/25 | USD | 43 | $ | 44,505 | ||||||
| European Investment Bank, 1.000%, 01/28/28 | CAD | 85 | 64,530 | |||||||
| Inter-American Development Bank, 7.875%, 03/14/23 | IDR | 1,250,000 | 90,923 | |||||||
| International Bank for Reconstruction & Development: | ||||||||||
| 1.900%, 01/16/25 | CAD | 110 | 88,304 | |||||||
| 2.900%, 11/26/25 | AUD | 75 | 57,300 | |||||||
| 1.125%, 09/13/28 | USD | 22 | 21,469 | |||||||
| International Bank for Reconstruction & Development MTN, 1.250%, 03/16/26 | NOK | 570 | 63,337 | |||||||
| International Finance Corp.: | ||||||||||
| 2.125%, 04/07/26 | USD | 40 | 41,464 | |||||||
| 1.500%, 04/15/35 | AUD | 102 | 66,606 | |||||||
| Total Supranational Bonds (Cost $536,429) | 538,438 | |||||||||
| US Municipal Bonds | 1.2% | ||||||||||
| California | 1.0% | ||||||||||
| State of California, 7.550%, 04/01/39 | USD | 105 | 175,230 | |||||||
| New York | 0.2% | ||||||||||
| New York State Urban Development Corp., Series B, 3.900%, 03/15/33 | USD | 40 | 43,953 | |||||||
| Total US Municipal Bonds (Cost $216,051) | 219,183 | |||||||||
The accompanying notes are an integral part of these financial statements.
56 Annual Report
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| US Treasury Securities | 0.4% | ||||||||||
| U.S. Treasury Bond, 1.750%, 08/15/41 (Cost $63,287) | USD | 65 | $ | 63,020 | ||||||
| Fair | ||||||||||
| Description | Shares | Value | ||||||||
| Short-Term Investments | 1.4% | ||||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $243,004) | 243,004 | $ | 243,004 | |||||||
| Total Investments | 99.9% (Cost $14,240,011) (») | $ | 17,808,682 | ||||||||
| Cash and Other Assets in Excess of Liabilities | 0.1% | 23,895 | |||||||||
| Net Assets | 100.0% | $ | 17,832,577 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 57
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Forward Currency Contracts open at December 31, 2021:
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||
| AUD | 29,408 | USD | 21,100 | HSB | 01/20/22 | $ | 297 | $ | — | ||||||||||
| CAD | 57,739 | USD | 45,400 | HSB | 01/20/22 | 245 | — | ||||||||||||
| CAD | 960,469 | USD | 776,956 | HSB | 01/20/22 | — | 17,673 | ||||||||||||
| CAD | 19,759 | USD | 15,982 | JPM | 01/20/22 | — | 362 | ||||||||||||
| CAD | 26,001 | USD | 20,949 | JPM | 01/20/22 | — | 394 | ||||||||||||
| CAD | 31,353 | USD | 24,713 | JPM | 01/20/22 | 72 | — | ||||||||||||
| CHF | 16,366 | USD | 17,800 | HSB | 01/20/22 | 168 | — | ||||||||||||
| CHF | 42,211 | USD | 45,838 | HSB | 01/20/22 | 506 | — | ||||||||||||
| CLP | 8,054,395 | USD | 9,700 | CIT | 01/13/22 | — | 257 | ||||||||||||
| CLP | 19,558,454 | USD | 23,301 | CIT | 01/13/22 | — | 369 | ||||||||||||
| CNH | 830,210 | USD | 129,900 | HSB | 01/20/22 | 574 | — | ||||||||||||
| CNH | 162,021 | USD | 25,200 | HSB | 06/02/22 | 43 | — | ||||||||||||
| CNH | 2,412,973 | USD | 373,275 | HSB | 06/02/22 | 2,666 | — | ||||||||||||
| CZK | 143,340 | USD | 6,400 | HSB | 01/20/22 | 151 | — | ||||||||||||
| EUR | 40,357 | USD | 46,000 | CIT | 01/20/22 | — | 39 | ||||||||||||
| EUR | 477,379 | USD | 555,584 | CIT | 01/20/22 | — | 11,915 | ||||||||||||
| EUR | 91,501 | USD | 106,491 | HSB | 01/20/22 | — | 2,284 | ||||||||||||
| EUR | 295,200 | USD | 334,500 | HSB | 01/20/22 | 1,692 | — | ||||||||||||
| EUR | 11,124 | USD | 12,600 | JPM | 01/20/22 | 69 | — | ||||||||||||
| EUR | 57,335 | USD | 64,616 | JPM | 03/24/22 | 768 | — | ||||||||||||
| GBP | 59,878 | USD | 79,500 | HSB | 01/20/22 | 1,546 | — | ||||||||||||
| GBP | 108,643 | USD | 149,173 | JPM | 01/20/22 | — | 2,124 | ||||||||||||
| HUF | 1,554,600 | USD | 4,800 | HSB | 01/20/22 | — | 16 | ||||||||||||
| INR | 1,717,927 | USD | 22,972 | JPM | 01/28/22 | 29 | — | ||||||||||||
| JPY | 17,878,240 | USD | 156,559 | CIT | 01/20/22 | — | 1,119 | ||||||||||||
| JPY | 23,927,551 | USD | 211,100 | HSB | 01/20/22 | — | 3,066 | ||||||||||||
| JPY | 51,626,350 | USD | 452,093 | HSB | 01/20/22 | — | 3,237 | ||||||||||||
| KRW | 20,737,850 | USD | 17,500 | JPM | 01/28/22 | — | 73 | ||||||||||||
| KRW | 57,139,887 | USD | 48,671 | JPM | 01/28/22 | — | 654 | ||||||||||||
| MXN | 25,323 | USD | 1,227 | JPM | 01/20/22 | 7 | — | ||||||||||||
| NOK | 1,010,517 | USD | 119,832 | HSB | 01/20/22 | — | 5,119 | ||||||||||||
| NZD | 14,277 | USD | 9,700 | HSB | 01/20/22 | 76 | — | ||||||||||||
| PLN | 37,660 | USD | 9,509 | JPM | 01/20/22 | — | 172 | ||||||||||||
| PLN | 169,477 | USD | 42,585 | JPM | 01/20/22 | — | 565 | ||||||||||||
| RON | 30,566 | USD | 7,000 | HSB | 01/20/22 | 23 | — | ||||||||||||
The accompanying notes are an integral part of these financial statements.
58 Annual Report
Lazard Global Dynamic Multi-Asset Portfolio (continued)
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||
| RON | 106,435 | USD | 24,300 | HSB | 01/20/22 | $ | 156 | $ | — | ||||||||||
| RUB | 735,806 | USD | 10,138 | JPM | 01/20/22 | — | 346 | ||||||||||||
| SEK | 73,204 | USD | 8,100 | HSB | 01/20/22 | 2 | — | ||||||||||||
| SEK | 191,749 | USD | 22,283 | HSB | 01/20/22 | — | 1,060 | ||||||||||||
| SGD | 15,410 | USD | 11,300 | HSB | 01/20/22 | 134 | — | ||||||||||||
| USD | 75,352 | AUD | 105,433 | HSB | 01/20/22 | — | 1,360 | ||||||||||||
| USD | 137,019 | AUD | 184,535 | HSB | 01/20/22 | 2,755 | — | ||||||||||||
| USD | 498,998 | CAD | 616,684 | CIT | 01/20/22 | 11,489 | — | ||||||||||||
| USD | 26,912 | CAD | 34,703 | CIT | 03/24/22 | — | 517 | ||||||||||||
| USD | 156,007 | CAD | 199,015 | HSB | 01/20/22 | — | 1,320 | ||||||||||||
| USD | 629,799 | CAD | 778,545 | JPM | 01/20/22 | 14,332 | — | ||||||||||||
| USD | 6,991 | CHF | 6,443 | SSB | 03/24/22 | — | 95 | ||||||||||||
| USD | 114,444 | CLP | 91,412,070 | CIT | 01/13/22 | 7,268 | — | ||||||||||||
| USD | 61,672 | CNH | 399,440 | HSB | 01/20/22 | — | 1,104 | ||||||||||||
| USD | 38,504 | COP | 146,911,407 | HSB | 05/02/22 | 2,865 | — | ||||||||||||
| USD | 49,304 | CZK | 1,110,926 | HSB | 01/20/22 | — | 1,466 | ||||||||||||
| USD | 52,875 | CZK | 1,161,482 | HSB | 01/20/22 | — | 205 | ||||||||||||
| USD | 6,338 | CZK | 140,116 | JPM | 01/20/22 | — | 65 | ||||||||||||
| USD | 54,409 | CZK | 1,194,546 | JPM | 01/20/22 | — | 182 | ||||||||||||
| USD | 11,972 | DKK | 79,017 | SSB | 03/24/22 | — | 145 | ||||||||||||
| USD | 50,515 | EUR | 43,404 | CIT | 01/20/22 | 1,083 | — | ||||||||||||
| USD | 12,296 | EUR | 10,869 | HSB | 01/20/22 | — | 83 | ||||||||||||
| USD | 23,457 | EUR | 20,744 | HSB | 01/20/22 | — | 168 | ||||||||||||
| USD | 39,600 | EUR | 34,429 | HSB | 01/20/22 | 390 | — | ||||||||||||
| USD | 64,258 | EUR | 56,873 | HSB | 01/20/22 | — | 512 | ||||||||||||
| USD | 7,500 | EUR | 6,610 | JPM | 01/20/22 | — | 28 | ||||||||||||
| USD | 23,043 | EUR | 20,334 | JPM | 01/20/22 | — | 115 | ||||||||||||
| USD | 31,400 | EUR | 27,278 | JPM | 01/20/22 | 334 | — | ||||||||||||
| USD | 50,111 | GBP | 37,773 | HSB | 01/20/22 | — | 1,015 | ||||||||||||
| USD | 129,462 | GBP | 97,745 | HSB | 01/20/22 | — | 2,836 | ||||||||||||
| USD | 12,700 | GBP | 9,464 | JPM | 01/20/22 | — | 109 | ||||||||||||
| USD | 19,996 | GBP | 14,637 | JPM | 01/20/22 | 185 | — | ||||||||||||
| USD | 20,077 | GBP | 15,181 | JPM | 01/20/22 | — | 470 | ||||||||||||
| USD | 1,931 | GBP | 1,459 | SSB | 03/24/22 | — | 43 | ||||||||||||
| USD | 43,598 | HUF | 14,206,272 | HSB | 01/20/22 | — | 120 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 59
Lazard Global Dynamic Multi-Asset Portfolio (concluded)
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||
| USD | 107,180 | HUF | 33,289,982 | JPM | 01/20/22 | $ | 4,735 | $ | — | ||||||||||
| USD | 17,663 | IDR | 256,025,212 | JPM | 01/28/22 | — | 327 | ||||||||||||
| USD | 27,600 | JPY | 3,138,106 | HSB | 01/20/22 | 316 | — | ||||||||||||
| USD | 37,200 | JPY | 4,285,291 | HSB | 01/20/22 | — | 58 | ||||||||||||
| USD | 73,249 | JPY | 8,320,373 | JPM | 03/24/22 | 868 | — | ||||||||||||
| USD | 1,572 | JPY | 178,525 | SSB | 03/24/22 | 19 | — | ||||||||||||
| USD | 16,766 | MXN | 355,224 | HSB | 01/20/22 | — | 536 | ||||||||||||
| USD | 35,000 | MXN | 773,253 | HSB | 01/20/22 | — | 2,664 | ||||||||||||
| USD | 17,761 | NOK | 159,745 | HSB | 01/20/22 | — | 373 | ||||||||||||
| USD | 286,478 | NOK | 2,417,460 | JPM | 01/20/22 | 12,051 | — | ||||||||||||
| USD | 27,927 | NZD | 41,226 | HSB | 01/20/22 | — | 304 | ||||||||||||
| USD | 89,939 | NZD | 133,273 | HSB | 01/20/22 | — | 1,324 | ||||||||||||
| USD | 93,659 | NZD | 132,336 | HSB | 01/20/22 | 3,037 | — | ||||||||||||
| USD | 20,959 | NZD | 29,939 | HSB | 05/10/22 | 505 | — | ||||||||||||
| USD | 42,016 | NZD | 59,360 | JPM | 01/20/22 | 1,367 | — | ||||||||||||
| USD | 17,856 | NZD | 24,991 | JPM | 05/10/22 | 782 | — | ||||||||||||
| USD | 39,389 | PEN | 158,498 | CIT | 02/03/22 | — | 267 | ||||||||||||
| USD | 16,479 | PEN | 67,002 | HSB | 02/03/22 | — | 285 | ||||||||||||
| USD | 45,336 | PLN | 179,550 | JPM | 01/20/22 | 819 | — | ||||||||||||
| USD | 8,093 | RON | 34,771 | HSB | 01/20/22 | 103 | — | ||||||||||||
| USD | 24,405 | RON | 107,117 | HSB | 01/20/22 | — | 208 | ||||||||||||
| USD | 58,705 | RON | 252,384 | JPM | 01/20/22 | 714 | — | ||||||||||||
| USD | 17,089 | SGD | 23,396 | HSB | 01/20/22 | — | 270 | ||||||||||||
| USD | 18,080 | SGD | 24,406 | JPM | 01/20/22 | — | 29 | ||||||||||||
| USD | 7,949 | THB | 266,474 | HSB | 01/20/22 | — | 27 | ||||||||||||
| Total gross unrealized appreciation/depreciation on Forward Currency Contracts | $ | 75,241 | $ | 69,474 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
60 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 61
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Opportunistic Strategies Portfolio (concluded) | ||||||||
| Short-Term Investments | 2.2% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $1,710,952) | 1,710,952 | $ | 1,710,952 | |||||
| Total Investments excluding
Securities Sold Short | 102.2% (Cost $64,937,679) | $ | 80,536,025 | ||||||
| Securities Sold Short | (2.1)% | ||||||||
| Exchange-Traded Funds | (2.1)% | ||||||||
| iShares 20+ Year Treasury Bond ETF (Proceeds $1,648,703) | (11,035 | ) | (1,635,277 | ) | ||||
| Total Investments | 100.1% (Cost and short proceeds $63,288,976) | $ | 78,900,748 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.1)% | (96,046 | ) | ||||||
| Net Assets | 100.0% | $ | 78,804,702 | ||||||
The accompanying notes are an integral part of these financial statements.
62 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 63
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||
| Country Garden Services Holdings Co., Ltd. | 5,000 | $ | 29,953 | |||||
| ESR Cayman, Ltd. (*) | 9,000 | 30,463 | ||||||
| Hopson Development Holdings, Ltd. | 22,960 | 47,862 | ||||||
| Logan Group Co., Ltd. | 31,000 | 23,698 | ||||||
| Longfor Group Holdings, Ltd. | 7,000 | 32,950 | ||||||
| Powerlong Real Estate Holdings, Ltd. | 65,000 | 34,037 | ||||||
| Sunac Services Holdings, Ltd. | 10,000 | 10,197 | ||||||
| Suning Universal Co., Ltd., Class A (*) | 35,900 | 26,530 | ||||||
| Yuexiu Property Co., Ltd. | 31,400 | 27,667 | ||||||
| Zhongliang Holdings Group Co., Ltd. | 54,000 | 25,268 | ||||||
| 404,830 | ||||||||
| France | 3.4% | ||||||||
| Eutelsat Communications SA | 13,045 | 159,611 | ||||||
| Gecina SA REIT | 209 | 29,233 | ||||||
| ICADE REIT | 1,103 | 79,196 | ||||||
| Nexity SA | 1,190 | 55,964 | ||||||
| Vinci SA | 8,485 | 899,018 | ||||||
| 1,223,022 | ||||||||
| Germany | 0.8% | ||||||||
| alstria office REIT-AG | 1,726 | 38,355 | ||||||
| Aroundtown SA | 3,932 | 23,816 | ||||||
| Sirius Real Estate, Ltd. | 25,131 | 48,104 | ||||||
| TAG Immobilien AG | 1,394 | 39,057 | ||||||
| Vonovia SE | 2,546 | 140,581 | ||||||
| 289,913 | ||||||||
| Hong Kong | 2.3% | ||||||||
| CK Asset Holdings, Ltd. | 10,500 | 66,215 | ||||||
| CK Infrastructure Holdings, Ltd. | 23,000 | 146,457 | ||||||
| Henderson Land Development Co., Ltd. | 29,000 | 123,520 | ||||||
| Kerry Properties, Ltd. | 16,000 | 41,671 | ||||||
| Link REIT | 3,600 | 31,714 | ||||||
| New World Development Co., Ltd. | 13,000 | 51,462 | ||||||
| Power Assets Holdings, Ltd. | 41,500 | 258,667 | ||||||
| Sun Hung Kai Properties, Ltd. | 10,000 | 121,394 | ||||||
| 841,100 | ||||||||
The accompanying notes are an integral part of these financial statements.
64 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||
| Israel | 0.5% | ||||||||
| Adgar Investment and Development, Ltd. | 7,452 | $ | 19,442 | |||||
| Azrieli Group, Ltd. | 371 | 35,373 | ||||||
| Gav-Yam Lands Corp., Ltd. | 3,802 | 46,981 | ||||||
| Israel Canada T.R, Ltd. | 6,959 | 44,886 | ||||||
| Property & Building Corp., Ltd. (*) | 173 | 24,812 | ||||||
| 171,494 | ||||||||
| Italy | 6.9% | ||||||||
| Atlantia SpA (*) | 28,430 | 564,756 | ||||||
| Hera SpA | 58,788 | 243,682 | ||||||
| Italgas SpA | 33,311 | 228,469 | ||||||
| Snam SpA | 127,614 | 767,019 | ||||||
| Terna - Rete Elettrica Nazionale | 86,217 | 695,627 | ||||||
| 2,499,553 | ||||||||
| Japan | 2.5% | ||||||||
| Advance Residence Investment Corp. REIT | 11 | 36,398 | ||||||
| Daito Trust Construction Co., Ltd. | 700 | 79,971 | ||||||
| Daiwa House Industry Co., Ltd. | 4,700 | 135,173 | ||||||
| Frontier Real Estate Investment Corp. REIT | 28 | 120,979 | ||||||
| GLP J-REIT | 52 | 89,853 | ||||||
| Hoshino Resorts REIT, Inc. REIT | 6 | 34,061 | ||||||
| Japan Real Estate Investment Corp. REIT | 11 | 62,447 | ||||||
| Katitas Co., Ltd. | 900 | 34,627 | ||||||
| Kenedix Office Investment Corp. REIT | 5 | 30,891 | ||||||
| Mitsubishi Estate Co., Ltd. | 2,400 | 33,270 | ||||||
| Mitsui Fudosan Co., Ltd. | 2,200 | 43,580 | ||||||
| Nippon Building Fund, Inc. REIT | 6 | 34,949 | ||||||
| NIPPON REIT Investment Corp. | 14 | 49,900 | ||||||
| Nomura Real Estate Holdings, Inc. | 1,400 | 32,219 | ||||||
| Open House Co., Ltd. | 900 | 47,171 | ||||||
| Orix JREIT, Inc. | 28 | 43,767 | ||||||
| 909,256 | ||||||||
| Luxembourg | 0.5% | ||||||||
| SES SA | 22,835 | 181,313 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 65
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||
| Mexico | 0.3% | ||||||||
| Corp Inmobiliaria Vesta SAB de CV | 27,400 | $ | 55,173 | |||||
| Fibra Uno Administracion SA de CV REIT | 36,800 | 38,929 | ||||||
| 94,102 | ||||||||
| Netherlands | 0.1% | ||||||||
| Eurocommercial Properties NV REIT | 2,089 | 45,415 | ||||||
| Singapore | 0.9% | ||||||||
| Keppel DC REIT | 13,000 | 23,834 | ||||||
| Keppel Pacific Oak US REIT | 34,300 | 27,443 | ||||||
| Mapletree Commercial Trust REIT | 23,400 | 34,831 | ||||||
| Mapletree Industrial Trust REIT | 42,100 | 84,704 | ||||||
| Parkway Life REIT | 12,100 | 46,062 | ||||||
| Propnex, Ltd. | 21,100 | 26,472 | ||||||
| Sasseur REIT | 83,700 | 52,501 | ||||||
| UOL Group, Ltd. | 6,200 | 32,640 | ||||||
| 328,487 | ||||||||
| South Africa | 0.5% | ||||||||
| Anglo American PLC | 2,172 | 88,906 | ||||||
| Equites Property Fund, Ltd. REIT | 22,019 | 31,774 | ||||||
| Resilient REIT, Ltd. | 11,114 | 41,678 | ||||||
| 162,358 | ||||||||
| South Korea | 0.1% | ||||||||
| Korea Real Estate Investment & Trust Co., Ltd. (*) | 13,463 | 29,491 | ||||||
| Spain | 2.2% | ||||||||
| Ferrovial SA | 25,337 | 794,626 | ||||||
| Sweden | 1.4% | ||||||||
| Atrium Ljungberg AB, B Shares | 1,752 | 38,719 | ||||||
| Castellum AB | 2,692 | 72,194 | ||||||
| Catena AB | 510 | 31,832 | ||||||
| Cibus Nordic Real Estate AB | 1,671 | 53,697 | ||||||
| Dios Fastigheter AB | 2,889 | 37,739 | ||||||
| Fabege AB | 1,735 | 28,945 | ||||||
The accompanying notes are an integral part of these financial statements.
66 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||
| Fastighets AB Balder, B Shares (*) | 511 | $ | 36,860 | |||||
| NP3 Fastigheter AB | 1,157 | 45,950 | ||||||
| Nyfosa AB | 1,990 | 34,356 | ||||||
| Sagax AB Class B | 2,346 | 79,188 | ||||||
| Sagax AB, Class D | 8,081 | 29,782 | ||||||
| Samhallsbyggnadsbolaget i Norden AB | 3,996 | 29,156 | ||||||
| 518,418 | ||||||||
| Switzerland | 0.6% | ||||||||
| Flughafen Zuerich AG (*) | 1,210 | 217,843 | ||||||
| United Arab Emirates | 0.4% | ||||||||
| Aldar Properties PJSC | 93,914 | 101,992 | ||||||
| Emaar Properties PJSC | 37,738 | 50,140 | ||||||
| 152,132 | ||||||||
| United Kingdom | 6.0% | ||||||||
| Big Yellow Group PLC REIT | 1,714 | 39,544 | ||||||
| National Grid PLC | 64,443 | 929,815 | ||||||
| Pennon Group PLC | 3,678 | 58,237 | ||||||
| Safestore Holdings PLC REIT | 3,590 | 68,394 | ||||||
| Savills PLC | 1,653 | 31,468 | ||||||
| Segro PLC REIT | 12,929 | 251,149 | ||||||
| Severn Trent PLC | 9,394 | 375,166 | ||||||
| United Utilities Group PLC | 28,366 | 418,698 | ||||||
| 2,172,471 | ||||||||
| United States | 28.4% | ||||||||
| Agree Realty Corp. REIT | 481 | 34,324 | ||||||
| Alexandria Real Estate Equities, Inc. REIT | 452 | 100,778 | ||||||
| Ameren Corp. | 2,549 | 226,887 | ||||||
| American Tower Corp. REIT | 1,759 | 514,508 | ||||||
| Apartment Investment and Management Co. REIT, Class A (*) | 5,022 | 38,770 | ||||||
| AvalonBay Communities, Inc. REIT | 637 | 160,900 | ||||||
| Boston Properties, Inc. REIT | 708 | 81,547 | ||||||
| Brixmor Property Group, Inc. REIT | 3,252 | 82,633 | ||||||
| Bunge, Ltd. | 1,223 | 114,179 | ||||||
| Camden Property Trust REIT | 833 | 148,840 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 67
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||
| CareTrust REIT, Inc. | 1,382 | $ | 31,551 | |||||
| CBRE Group, Inc., Class A (*) | 2,051 | 222,554 | ||||||
| CF Industries Holdings, Inc. | 2,700 | 191,106 | ||||||
| Consolidated Edison, Inc. | 7,265 | 619,850 | ||||||
| Crown Castle International Corp. REIT | 2,157 | 450,252 | ||||||
| CSX Corp. | 10,925 | 410,780 | ||||||
| CubeSmart REIT | 1,051 | 59,812 | ||||||
| Digital Realty Trust, Inc. REIT | 1,115 | 197,210 | ||||||
| Duke Realty Corp. REIT | 1,635 | 107,321 | ||||||
| EastGroup Properties, Inc. REIT | 383 | 87,267 | ||||||
| Equinix, Inc. REIT | 343 | 290,123 | ||||||
| Equity Lifestyle Properties, Inc. REIT | 1,257 | 110,189 | ||||||
| Equity Residential REIT | 1,422 | 128,691 | ||||||
| Essential Properties Realty Trust, Inc. REIT | 1,253 | 36,124 | ||||||
| Essex Property Trust, Inc. REIT | 194 | 68,333 | ||||||
| Extra Space Storage, Inc. REIT | 758 | 171,861 | ||||||
| Federal Realty Investment Trust REIT | 468 | 63,798 | ||||||
| First Industrial Realty Trust, Inc. REIT | 701 | 46,406 | ||||||
| Gaming and Leisure Properties, Inc. REIT | 1,341 | 65,253 | ||||||
| Healthcare Trust of America, Inc. REIT, Class A | 1,568 | 52,356 | ||||||
| Healthpeak Properties, Inc. REIT | 2,104 | 75,933 | ||||||
| Highwoods Properties, Inc. REIT | 1,149 | 51,234 | ||||||
| Hilton Worldwide Holdings, Inc. (*) | 2,515 | 392,315 | ||||||
| Hudson Pacific Properties, Inc. REIT | 1,710 | 42,254 | ||||||
| Innovative Industrial Properties, Inc. REIT | 186 | 48,901 | ||||||
| Invitation Homes, Inc., REIT | 1,715 | 77,758 | ||||||
| Iron Mountain, Inc. REIT | 1,666 | 87,182 | ||||||
| Jones Lang LaSalle, Inc. (*) | 350 | 94,269 | ||||||
| Kilroy Realty Corp. REIT | 852 | 56,624 | ||||||
| Kimco Realty Corp. REIT | 1,985 | 48,930 | ||||||
| Lamar Advertising Co. REIT, Class A | 591 | 71,688 | ||||||
| Life Storage, Inc. REIT | 540 | 82,717 | ||||||
| Medical Properties Trust, Inc. REIT | 4,409 | 104,185 | ||||||
| MGM Growth Properties LLC REIT, Class A | 1,519 | 62,051 | ||||||
| Mid-America Apartment Communities, Inc. REIT | 942 | 216,133 | ||||||
| National Retail Properties, Inc. REIT | 1,319 | 63,404 | ||||||
The accompanying notes are an integral part of these financial statements.
68 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||
| Newmark Group, Inc., Class A | 2,236 | $ | 41,813 | |||||
| Norfolk Southern Corp. | 802 | 238,763 | ||||||
| NorthWestern Corp. | 2,271 | 129,810 | ||||||
| Office Properties Income Trust REIT | 1,384 | 34,379 | ||||||
| Omega Healthcare Investors, Inc. REIT | 1,232 | 36,455 | ||||||
| Orion Office REIT, Inc. (*) | 279 | 5,209 | ||||||
| Pennsylvania Real Estate Investment Trust (*) | 5,017 | 5,117 | ||||||
| Pinnacle West Capital Corp. | 7,429 | 524,413 | ||||||
| Preferred Apartment Communities, Inc. REIT | 2,343 | 42,315 | ||||||
| Prologis, Inc. REIT | 3,438 | 578,822 | ||||||
| PS Business Parks, Inc. REIT | 232 | 42,727 | ||||||
| Public Storage REIT | 841 | 315,005 | ||||||
| Rayonier, Inc., REIT | 1,428 | 57,634 | ||||||
| Realty Income Corp. REIT | 2,790 | 199,736 | ||||||
| Regency Centers Corp. REIT | 1,247 | 93,961 | ||||||
| SBA Communications Corp. REIT | 593 | 230,689 | ||||||
| Simon Property Group, Inc. REIT | 1,556 | 248,602 | ||||||
| SL Green Realty Corp. REIT | 818 | 58,651 | ||||||
| Spirit Realty Capital, Inc. REIT | 1,031 | 49,684 | ||||||
| STAG Industrial, Inc., REIT | 766 | 36,737 | ||||||
| STORE Capital Corp. REIT | 1,234 | 42,450 | ||||||
| Sun Communities, Inc. REIT | 413 | 86,718 | ||||||
| The Macerich Co. REIT | 1,985 | 34,301 | ||||||
| The St. Joe Co. | 1,000 | 52,050 | ||||||
| UDR, Inc. REIT | 1,635 | 98,084 | ||||||
| Urstadt Biddle Properties, Inc. REIT, Class A | 1,810 | 38,553 | ||||||
| Ventas, Inc. REIT | 1,555 | 79,492 | ||||||
| VICI Properties, Inc. REIT | 2,258 | 67,988 | ||||||
| Welltower, Inc. REIT | 1,357 | 116,390 | ||||||
| Weyerhaeuser Co. REIT | 2,257 | 92,943 | ||||||
| WP Carey, Inc. REIT | 1,298 | 106,501 | ||||||
| 10,275,773 | ||||||||
| Total Common Stocks (Cost $19,046,691) | 23,193,389 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 69
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||
| Exchange-Traded Funds | 3.8% | ||||||||
| Aberdeen Standard Physical Silver Shares ETF (Δ) | 5,500 | $ | 123,200 | |||||
| SPDR Gold Shares (Δ) | 7,330 | 1,253,137 | ||||||
| Total Exchange-Traded Funds (Cost $1,409,857) | 1,376,337 | |||||||
| Short-Term Investments | 27.8% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Δ) (Cost $10,062,374) | 10,062,374 | 10,062,374 | ||||||
| Total Investments | 95.7% (Cost $30,518,922) (») | ||||||||
| $ | 34,632,100 | |||||||
| Cash and Other Assets in Excess of Liabilities | 4.3% | 1,538,980 | |||||||
| Net Assets | 100.0% | $ | 36,171,080 | ||||||
The accompanying notes are an integral part of these financial statements.
70 Annual Report
Lazard Real Assets Portfolio (•) (continued)
Forward Currency Contracts open at December 31, 2021:
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Depreciation | ||||||||
| USD | 57,428 | AUD | 80,728 | CIT | 03/24/22 | $ | 1,317 | |||||||
| USD | 32,512 | AUD | 44,952 | HSB | 03/24/22 | 199 | ||||||||
| USD | 51,783 | AUD | 72,772 | HSB | 03/24/22 | 1,173 | ||||||||
| USD | 240,264 | AUD | 337,660 | JPM | 03/24/22 | 5,450 | ||||||||
| USD | 145,493 | AUD | 204,562 | SSB | 03/24/22 | 3,367 | ||||||||
| USD | 33,656 | CAD | 43,193 | CIT | 03/24/22 | 484 | ||||||||
| USD | 4,236 | CAD | 5,479 | HSB | 03/24/22 | 95 | ||||||||
| USD | 9,144 | CAD | 11,733 | HSB | 03/24/22 | 130 | ||||||||
| USD | 9,124 | CAD | 11,709 | JPM | 03/24/22 | 131 | ||||||||
| USD | 16,140 | CHF | 14,838 | HSB | 03/24/22 | 178 | ||||||||
| USD | 26,190 | CHF | 24,045 | HSB | 03/24/22 | 254 | ||||||||
| USD | 50,669 | CHF | 46,681 | HSB | 03/24/22 | 669 | ||||||||
| USD | 27,871 | CHF | 25,677 | JPM | 03/24/22 | 367 | ||||||||
| USD | 82,636 | CHF | 76,119 | SSB | 03/24/22 | 1,076 | ||||||||
| USD | 1,064,497 | EUR | 943,051 | CIT | 03/24/22 | 10,948 | ||||||||
| USD | 474,376 | EUR | 419,152 | HSB | 03/24/22 | 3,620 | ||||||||
| USD | 765,896 | EUR | 678,503 | HSB | 03/24/22 | 7,862 | ||||||||
| USD | 737,777 | EUR | 653,746 | JPM | 03/24/22 | 7,748 | ||||||||
| USD | 1,264,410 | EUR | 1,120,454 | SSB | 03/24/22 | 13,343 | ||||||||
| USD | 143,635 | GBP | 108,535 | HSB | 03/24/22 | 3,222 | ||||||||
| USD | 784,452 | GBP | 593,657 | HSB | 03/24/22 | 18,814 | ||||||||
| USD | 498,673 | GBP | 377,415 | JPM | 03/24/22 | 12,000 | ||||||||
| USD | 327,416 | GBP | 247,777 | SSB | 03/24/22 | 7,846 | ||||||||
| USD | 194,897 | HKD | 1,520,196 | CIT | 03/24/22 | 89 | ||||||||
| USD | 46,592 | HKD | 363,484 | HSB | 03/24/22 | 30 | ||||||||
| USD | 155,278 | HKD | 1,211,292 | SSB | 03/24/22 | 87 | ||||||||
| Total gross unrealized depreciation on Forward Currency Contracts | $ | 100,499 | ||||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 71
Lazard Real Assets Portfolio (•) (continued)
Futures Contracts open at December 31, 2021 (Δ):
| Type | Number of Contracts | Notional Amount | Expiration Date | Notional Cost | Fair Value | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||||
| Natural Gas | 26 | $ | 260,000 | 02/24/2022 | $ | 922,480 | $ | 924,820 | $ | 2,340 | $ | — | ||||||||||||
| SUGAR 11 | 2 | 224,000 | 02/28/2022 | 43,749 | 42,291 | — | 1,458 | |||||||||||||||||
| Cotton No. 2 | 1 | 50,000 | 03/09/2022 | 57,456 | 56,300 | — | 1,156 | |||||||||||||||||
| Low Sulphur Gasoil | 6 | 600 | 03/10/2022 | 369,156 | 397,800 | 28,644 | — | |||||||||||||||||
| Soyabean Oil | 1 | 60,000 | 03/14/2022 | 35,263 | 33,918 | — | 1,345 | |||||||||||||||||
| Total gross unrealized appreciation/depreciation on Futures Contracts | $ | 30,984 | $ | 3,959 | ||||||||||||||||||||
Total Return Swap Agreements open at December 31, 2021 (Δ):
| Currency | Counterparty | Notional Amount | Expiration Date | Receive | Pay | Payable | Payment Frequency | Unrealized Depreciation | |||||||||||||
| USD | GSC | $9,409,753 | 10/22/22 | Appreciation, and dividends paid, on commodities in a custom momentum basket | 0.00% | Depreciation, and dividend expense (if applicable), on commodities in a custom momentum basket | Upon Maturity(a) | $ | 192,576 |
||||||||||||
(a) For swap agreements, the net settlement will occur on the expiration date.
The accompanying notes are an integral part of these financial statements.
72 Annual Report
Lazard Real Assets Portfolio (•) (concluded)
The following table represents the commodity exposure expressed as a percentage of the notional amount of the individual commodity underlying the custom total return basket swap agreements with GSC, as of December 31, 2021:
| Commodity | Commodity Index Ticker Symbol | Commodity Exposure Expressed as a Percentage of Notional Amount | |||||
| Aluminum | BCOMAL | 5.67 | % | ||||
| Bean Oil | BCOMBO | 4.82 | |||||
| Brent Crude | BCOMCO | 12.17 | |||||
| Coffee | BCOMKC | 5.43 | |||||
| Copper | BCOMHG | 7.96 | |||||
| Corn | BCOMCN | 8.01 | |||||
| Cotton | BCOMCT | 0.78 | |||||
| Crude Oil | BCOMCL | 14.20 | |||||
| Gasoline (RBOB) | BCOMRB | 2.55 | |||||
| Gold | BCOMGC | 0.05 | |||||
| Heating Oil | BCOMHO | 4.58 | |||||
| Kansas Wheat | BCOMKW | 2.62 | |||||
| Lean Hogs | BCOMLH | 0.04 | |||||
| Live Cattle | BCOMLC | 5.43 | |||||
| Natural Gas | BCOMNG | 2.62 | |||||
| Nickel | BCOMNI | 1.15 | |||||
| Silver | BCOMSI | 2.36 | |||||
| Soy Meal | BCOMSM | 3.58 | |||||
| Soybeans | BCOMSY | 4.64 | |||||
| Sugar | BCOMSB | 4.38 | |||||
| Wheat | BCOMWH | 4.08 | |||||
| Zinc | BCOMZS | 2.88 | |||||
| Total | 100.0 | % | |||||
The accompanying notes are an integral part of these financial statements.
Annual Report 73
The Lazard Funds, Inc. Notes to Portfolios of Investments
December 31, 2021
| (‡) | Security valued using Level 2 inputs, based on reference to a similar security which was trading on an active market, under GAAP hierarchy - see Note 9 in the Notes to Financial Statements. |
| (*) | Non-income producing security. |
| (±) | Some or all of this security position has been pledged to cover collateral requirements on securities sold short. |
| (#) | Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2021, these securities amounted to 3.6 % of net assets of Lazard Enhanced Opportunities Portfolio and 0.2% of net assets of Lazard Global Dynamic Multi-Asset Portfolio. |
| (») | The portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts. |
| (§) | Variable and floating rate securities are securities for which interest rate changes are based on changes in a designated base rate. The rates shown are those in effect on December 31, 2021. |
| (•) | Lazard Real Assets Portfolio’s Portfolio of Investments and accompanying notes are presented on a consolidated basis. |
| (Δ) | The security is owned, wholly or in part, by Lazard Real Assets Portfolio, Ltd., a wholly-owned subsidiary of the Lazard Real Assets Portfolio. See Note 1 in the Notes to the Financial Statements. |
| Security Abbreviations: | ||
| ADR | — | American Depositary Receipt |
| CDOR | — | Canadian Dollar Offered Rate |
| ETF | — | Exchange-Traded Fund |
| LIBOR | — | London Interbank Offered Rate |
| PJSC | — | Public Joint Stock Company |
| REIT | — | Real Estate Investment Trust |
| SOFR | — | Secured Overnight Financing Rate |
| SONIA | — | Sterling Overnight Index Average |
| Currency Abbreviations: | |||||
| AUD | — | Australian Dollar | JPY | — | Japanese Yen |
| CAD | — | Canadian Dollar | KRW | — | South Korean Won |
| CHF | — | Swiss Franc | MXN | — | Mexican New Peso |
| CLP | — | Chilean Peso | NOK | — | Norwegian Krone |
| CNH | — | Chinese Yuan Renminbi | NZD | — | New Zealand Dollar |
| COP | — | Colombian Peso | PEN | — | Peruvian Sol |
| CZK | — | Czech Koruna | PLN | — | Polish Zloty |
| DKK | — | Danish Krone | RON | — | New Romanian Leu |
| EUR | — | Euro | RUB | — | Russian Ruble |
| GBP | — | British Pound Sterling | SEK | — | Swedish Krona |
| HKD | — | Hong Kong Dollar | SGD | — | Singapore Dollar |
| HUF | — | Hungarian Forint | THB | — | Thai Baht |
| IDR | — | Indonesian Rupiah | USD | — | United States Dollar |
| INR | — | Indian Rupee | |||
The accompanying notes are an integral part of these financial statements.
74 Annual Report
| Counterparty Abbreviations: | ||
| BOA | — | Bank of America |
| CIT | — | Citibank NA |
| GSC | — | Goldman Sachs International |
| HSB | — | HSBC Bank USA NA |
| JPM | — | JPMorgan Chase Bank NA |
| MSC | — | Morgan Stanley & Co. |
| SSB | — | State Street Bank and Trust Co. |
The accompanying notes are an integral part of these financial statements.
Annual Report 75
Portfolio holdings by industry (as a percentage of net assets), for the Portfolio previously presented by country:
| Lazard Enhanced Opportunities Portfolio |
|||||||||
| Industry† | Long | Short | |||||||
| Common Stocks and Convertible Corporate Bonds | |||||||||
| Aerospace & Defense | 1.0 | % | — | % | |||||
| Air Freight & Logistics | 2.3 | –1.9 | |||||||
| Airlines | 1.6 | –0.2 | |||||||
| Auto Components | 0.9 | –0.2 | |||||||
| Automobiles | 3.7 | –1.5 | |||||||
| Banks | 2.6 | — | |||||||
| Biotechnology | 9.2 | –4.5 | |||||||
| Chemicals | 1.3 | –0.5 | |||||||
| Consumer Finance | 5.0 | –2.1 | |||||||
| Diversified Consumer Services | 1.4 | –0.4 | |||||||
| Diversified Financial Services | 2.0 | –0.4 | |||||||
| Diversified Telecommunication Services | 0.8 | — | |||||||
| Electrical Equipments | 0.5 | –0.3 | |||||||
| Electronic Equipment, Instruments & Components | 2.8 | –0.7 | |||||||
| Energy Equipment & Services | 0.9 | –0.3 | |||||||
| Entertainment | 2.6 | –1.3 | |||||||
| Equity Real Estate Investment Trusts (REITs) | 2.5 | –0.7 | |||||||
| Food & Staples Retailing | 1.8 | –0.7 | |||||||
| Food Products | 0.5 | –0.1 | |||||||
| Health Care Equipment & Supplies | 5.7 | –2.5 | |||||||
| Health Care Providers & Services | 1.2 | –0.3 | |||||||
| Health Care Technology | 0.4 | — | |||||||
| Hotels, Restaurants & Leisure | 3.0 | –1.1 | |||||||
| Independent Power & Renewable Electricity Producers | 0.9 | –0.5 | |||||||
| Insurance | 0.1 | ||||||||
| Interactive Media & Services | 0.7 | –0.1 | |||||||
| Internet & Direct Marketing Retail | 4.5 | –1.2 | |||||||
| IT Services | 3.6 | –0.8 | |||||||
| Leisure Products | 0.1 | — | |||||||
| Life Sciences Tools & Services | 0.9 | –0.5 | |||||||
| Machinery | 2.4 | –0.1 | |||||||
| Media | 9.5 | –0.9 | |||||||
| Metals & Mining | 2.8 | –1.3 | |||||||
| Mortgage Real Estate Investment Trusts (REITs) | 7.7 | –0.4 | |||||||
| Personal Products | 2.1 | –0.4 | |||||||
| Pharmaceuticals | 7.5 | –2.6 | |||||||
| Professional Services | 0.3 | –0.1 | |||||||
| Real Estate Management & Development | 2.4 | –1.0 | |||||||
| Semiconductors & Semiconductor Equipment | 1.2 | –0.5 | |||||||
| Software | 10.7 | –3.3 | |||||||
| Specialty Retail | 2.2 | –0.4 | |||||||
| Technology Hardware, Storage & Peripherals | 0.3 | –0.2 | |||||||
| Subtotal | 113.6 | –34.0 | |||||||
The accompanying notes are an integral part of these financial statements.
76 Annual Report
| Lazard Enhanced Opportunities Portfolio |
|||||||||
| Industry† | Long | Short | |||||||
| US Treasury Securities | — | % | –8.8 | % | |||||
| Short-Term Investments | 26.1 | — | |||||||
| Total Investments | 139.7 | % | –42.8 | % | |||||
| † | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
Annual Report 77
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country:
| Industry† | Lazard Global Dynamic Multi-Asset Portfolio | Lazard Real Assets Portfolio | |||||||
| Common Stocks and Corporate & Quasi Government Bonds | |||||||||
| Aerospace & Defense | 0.6 | % | — | % | |||||
| Air Freight & Logistics | 0.6 | — | |||||||
| Auto Components | 0.2 | — | |||||||
| Automobiles | 1.9 | — | |||||||
| Banks | 6.1 | — | |||||||
| Beverages | 2.4 | — | |||||||
| Biotechnology | 0.4 | — | |||||||
| Building Products | 0.7 | — | |||||||
| Capital Markets | 3.6 | — | |||||||
| Chemicals | 0.9 | 0.5 | |||||||
| Commercial Services & Suppliers | 0.5 | — | |||||||
| Communications Equipment | 0.8 | — | |||||||
| Construction & Engineering | — | 4.7 | |||||||
| Construction Materials | 0.1 | — | |||||||
| Consumer Finance | 0.7 | — | |||||||
| Containers & Packaging | 0.4 | — | |||||||
| Diversified Consumer Services | 0.4 | — | |||||||
| Diversified Financial Services | 0.2 | — | |||||||
| Diversified Telecommunication Services | 1.6 | — | |||||||
| Electric Utilities | 0.5 | 4.5 | |||||||
| Electrical Equipment | 1.4 | — | |||||||
| Electronic Equipment, Instruments & Components | 0.9 | — | |||||||
| Entertainment | 0.6 | — | |||||||
| Equity Real Estate Investment Trusts (REITs) | 1.6 | 26.4 | |||||||
| Food & Staples Retailing | 1.3 | — | |||||||
| Food Products | 0.5 | 0.3 | |||||||
| Gas Utilities | 0.2 | 2.8 | |||||||
| Health Care Equipment & Supplies | 0.9 | — | |||||||
| Health Care Providers & Services | 2.2 | — | |||||||
| Health Care Technology | 0.1 | — | |||||||
| Hotels, Restaurants & Leisure | 1.4 | 1.1 | |||||||
| Household Durables | 0.4 | 0.1 | |||||||
| Household Products | 1.2 | — | |||||||
| Independent Power & Renewable Electricity Producers | 0.2 | — | |||||||
| Industrial Conglomerates | 0.3 | — | |||||||
| Insurance | 1.7 | — | |||||||
| Interactive Media & Services | 2.3 | — | |||||||
The accompanying notes are an integral part of these financial statements.
78 Annual Report
| Industry† | Lazard Global Dynamic Multi-Asset Portfolio | Lazard Real Assets Portfolio | |||||||
| Internet & Direct Marketing Retail | 1.3 | % | — | % | |||||
| IT Services | 2.3 | — | |||||||
| Leisure Products | 0.5 | — | |||||||
| Life Sciences Tools & Services | 1.7 | — | |||||||
| Machinery | 1.4 | — | |||||||
| Marine | 0.4 | — | |||||||
| Media | 1.2 | 0.9 | |||||||
| Metals & Mining | 0.7 | 0.4 | |||||||
| Multiline Retail | 0.7 | — | |||||||
| Multi-Utilities | 0.2 | 6.1 | |||||||
| Oil, Gas & Consumable Fuels | 1.8 | — | |||||||
| Paper & Forest Products | 0.1 | — | |||||||
| Personal Products | 0.3 | — | |||||||
| Pharmaceuticals | 3.8 | — | |||||||
| Professional Services | 1.2 | — | |||||||
| Real Estate Management & Development | 0.3 | 8.4 | |||||||
| Road & Rail | 0.6 | 1.8 | |||||||
| Semiconductors & Semiconductor Equipment | 3.6 | — | |||||||
| Software | 5.8 | — | |||||||
| Specialty Retail | 2.3 | — | |||||||
| Technology Hardware, Storage & Peripherals | 3.5 | — | |||||||
| Textiles, Apparel & Luxury Goods | 1.0 | — | |||||||
| Thrifts & Mortgage Finance | 0.3 | — | |||||||
| Tobacco | 0.1 | — | |||||||
| Trading Companies & Distributors | 0.2 | — | |||||||
| Transportation Infrastructure | — | 3.7 | |||||||
| Water Utilities | — | 2.4 | |||||||
| Wireless Telecommunication Services | 0.2 | — | |||||||
| Subtotal | 75.3 | 64.1 | |||||||
| Exchange Traded Funds | 5.1 | 3.8 | |||||||
| Foreign Government Obligations | 13.5 | — | |||||||
| Supranational | 3.0 | — | |||||||
| US Municipal Bonds | 1.2 | — | |||||||
| US Treasury Securities | 0.4 | — | |||||||
| Short-Term Investments | 1.4 | 27.8 | |||||||
| Total Investments | 99.9 | % | 95.7 | % | |||||
| † | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
Annual Report 79
The Lazard Funds, Inc. Statements of Assets and Liabilities
| December 31, 2021 | Lazard Enhanced Opportunities Portfolio | Lazard Global Dynamic Multi-Asset Portfolio | ||||||
| ASSETS | ||||||||
| Investments in securities, at fair value | $ | 204,793,016 | $ | 17,808,682 | ||||
| Cash | 614,213 | 10,416 | ||||||
| Foreign currency, at fair value | 77,066 | 5,740 | ||||||
| Receivables for: | ||||||||
| Dividends and interest | 863,590 | 88,889 | ||||||
| Investments sold | 1,508,943 | — | ||||||
| Capital stock sold | 483,318 | 246 | ||||||
| Amount due from Investment Manager (Note 3) | — | 1,279 | ||||||
| Cash collateral due from broker on options, future contracts and swap agreements | 2,875,950 | — | ||||||
| Receivable for variation margin on open futures contracts | — | — | ||||||
| Gross unrealized appreciation on: | ||||||||
| Forward currency contracts | — | 75,241 | ||||||
| Swap agreements | 383,000 | — | ||||||
| Total assets | 211,599,096 | 17,990,493 | ||||||
| LIABILITIES | ||||||||
| Securities sold short, at fair value | 62,724,710 | — | ||||||
| Payables for: | ||||||||
| Management fees | 106,852 | — | ||||||
| Accrued professional services | 27,925 | 25,499 | ||||||
| Accrued custodian fees | 96,478 | 49,851 | ||||||
| Accrued distribution fees | 136 | 47 | ||||||
| Accrued directors’ fees | — | 358 | ||||||
| Capital stock redeemed | — | — | ||||||
| Investments purchased | 1,519,513 | 10,182 | ||||||
| Dividends on securities sold short | 18,367 | — | ||||||
| Gross unrealized depreciation on: | ||||||||
| Forward currency contracts | 69,777 | 69,474 | ||||||
| Swap agreements | 375,303 | — | ||||||
| Written options, at fair value | 31,572 | — | ||||||
| Other accrued expenses and payables | 17,415 | 2,505 | ||||||
| Total liabilities | 64,988,048 | 157,916 | ||||||
| Net assets | $ | 146,611,048 | $ | 17,832,577 | ||||
The accompanying notes are an integral part of these financial statements.
80 Annual Report
| Lazard Opportunistic Strategies Portfolio | Lazard Real Assets Portfolio (a) | |||||||
| $ | 80,536,025 | $ | 34,632,100 | |||||
| — | — | |||||||
| — | 1,929 | |||||||
| 12,588 | 72,578 | |||||||
| — | 806 | |||||||
| — | — | |||||||
| — | — | |||||||
| — | 1,823,396 | |||||||
| — | 24,848 | |||||||
| — | — | |||||||
| — | — | |||||||
| 80,548,613 | 36,555,657 | |||||||
| 1,635,277 | — | |||||||
| 59,561 | 24,205 | |||||||
| 24,565 | 33,810 | |||||||
| 15,490 | 28,429 | |||||||
| 37 | 23 | |||||||
| — | — | |||||||
| 918 | — | |||||||
| — | 1,657 | |||||||
| — | — | |||||||
| — | 100,499 | |||||||
| — | 192,576 | |||||||
| — | — | |||||||
| 8,063 | 3,378 | |||||||
| 1,743,911 | 384,577 | |||||||
| $ | 78,804,702 | $ | 36,171,080 | |||||
Annual Report 81
| December 31, 2021 | Lazard Enhanced Opportunities Portfolio | Lazard Global Dynamic Multi-Asset Portfolio | ||||||
| NET ASSETS | ||||||||
| Paid in capital | $ | 148,783,640 | $ | 14,281,135 | ||||
| Distributable earnings (Accumulated loss) | (2,172,592 | ) | 3,551,442 | |||||
| Net assets | $ | 146,611,048 | $ | 17,832,577 | ||||
| Institutional Shares | ||||||||
| Net assets | $ | 145,836,194 | $ | 17,617,000 | ||||
| Shares of capital stock outstanding* | 15,584,880 | 1,746,408 | ||||||
| Net asset value, offering and redemption price per share | $ | 9.36 | $ | 10.09 | ||||
| Open Shares | ||||||||
| Net assets | $ | 774,854 | $ | 215,577 | ||||
| Shares of capital stock outstanding* | 82,674 | 21,426 | ||||||
| Net asset value, offering and redemption price per share | $ | 9.37 | $ | 10.06 | ||||
| Cost of investments in securities | $ | 209,876,817 | $ | 14,240,011 | ||||
| Proceeds received from securities sold short | $ | 66,126,707 | $ | — | ||||
| Proceeds received from written options | $ | 28,942 | $ | — | ||||
| Cost of foreign currency | $ | 76,685 | $ | 5,639 | ||||
| * | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
| (a) | Consolidated Statement of Assets and Liabilities. |
The accompanying notes are an integral part of these financial statements.
82 Annual Report
| Lazard Opportunistic Strategies Portfolio | Lazard Real Assets Portfolio (a) | |||||||
| $ | 61,961,419 | $ | 35,625,875 | |||||
| 16,843,283 | 545,205 | |||||||
| $ | 78,804,702 | $ | 36,171,080 | |||||
| $ | 78,647,399 | $ | 36,026,758 | |||||
| 6,871,003 | 3,212,708 | |||||||
| $ | 11.45 | $ | 11.21 | |||||
| $ | 157,303 | $ | 144,322 | |||||
| 13,824 | 12,859 | |||||||
| $ | 11.38 | $ | 11.22 | |||||
| $ | 64,937,679 | $ | 30,518,922 | |||||
| $ | 1,648,703 | $ | — | |||||
| $ | — | $ | — | |||||
| $ | — | $ | 1,916 | |||||
Annual Report 83
The Lazard Funds, Inc. Statements of Operations
| For the Year Ended December 31, 2021 | Lazard Enhanced Opportunities Portfolio | Lazard Global Dynamic Multi-Asset Portfolio | ||||||
| Investment Income (Loss) | ||||||||
| Income | ||||||||
| Dividends | $ | 2,659 | $ | 292,572 | ||||
| Interest | 1,619,046 | 192,058 | ||||||
| Non-cash dividends | — | — | ||||||
| Total investment income* | 1,621,705 | 484,630 | ||||||
| Expenses | ||||||||
| Management fees (Note 3) | 485,173 | 214,077 | ||||||
| Professional services | 49,229 | 42,435 | ||||||
| Custodian fees | 147,452 | 114,440 | ||||||
| Administration fees | 28,383 | 23,345 | ||||||
| Registration fees | 35,924 | 32,045 | ||||||
| Shareholders’ services | 9,949 | 9,804 | ||||||
| Directors’ fees and expenses | 7,422 | 7,369 | ||||||
| Shareholders’ reports | 20,721 | 11,102 | ||||||
| Distribution fees (Open Shares) | 1,423 | 548 | ||||||
| Other^ | 4,365 | 5,386 | ||||||
| Total gross expenses before expenses on securities sold short | 790,041 | 460,551 | ||||||
| Broker expense on securities sold short | 177,462 | — | ||||||
| Dividend expense on securities sold short | 86,499 | — | ||||||
| Total gross expenses | 1,054,002 | 460,551 | ||||||
| Management fees waived and expenses reimbursed | (149,832 | ) | (218,114 | ) | ||||
| Voluntary reimbursement by administrator | (33,105 | ) | — | |||||
| Total net expenses | 871,065 | 242,437 | ||||||
| Net investment income (loss) | 750,640 | 242,193 | ||||||
| Net Realized and Unrealized Gain (Loss) | ||||||||
| Net realized gain (loss) on: | ||||||||
| Investments | 7,333,972 | 6,178,332 | ||||||
| Securities sold short | (3,723,234 | ) | — | |||||
| Foreign currency transactions | (11,876 | ) | (55,663 | ) | ||||
| Forward currency contracts | 214,226 | (266,954 | ) | |||||
| Futures contracts | — | — | ||||||
| Written options | (8,361 | ) | — | |||||
| Swap agreements | 206,886 | — | ||||||
| Total net realized gain (loss) | 4,011,613 | 5,855,715 | ||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||
| Investments | (9,612,732 | ) | (3,811,637 | ) | ||||
| Securities sold short | 6,677,399 | — | ||||||
| Foreign currency translations | (156 | ) | (6,179 | ) | ||||
| Forward currency contracts | (72,104 | ) | 75,210 | |||||
| Futures contracts | — | — | ||||||
| Written options | (2,939 | ) | — | |||||
| Swap agreements | 7,697 | — | ||||||
| Total net change in unrealized appreciation (depreciation) | (3,002,835 | ) | (3,742,606 | ) | ||||
| Net realized and unrealized gain (loss) | 1,008,778 | 2,113,109 | ||||||
| Net increase (decrease) in net assets resulting from operations | $ | 1,759,418 | $ | 2,355,302 | ||||
| * Net of foreign withholding taxes of | $ | (11 | ) | $ | 15,416 | |||
| ^ Includes interest on line of credit of | $ | 145 | $ | 598 | ||||
| (a) | Consolidated Statement of Operations. |
The accompanying notes are an integral part of these financial statements.
84 Annual Report
| Lazard Opportunistic Strategies Portfolio | Lazard Real Assets Portfolio (a) | |||||||
| $ | 1,224,368 | $ | 679,119 | |||||
| 352 | 13 | |||||||
| — | 50,461 | |||||||
| 1,224,720 | 729,593 | |||||||
| 811,671 | 206,780 | |||||||
| 44,320 | 51,860 | |||||||
| 32,837 | 61,209 | |||||||
| 30,146 | 23,977 | |||||||
| 17,702 | 28,383 | |||||||
| 11,407 | 9,699 | |||||||
| 8,941 | 16,412 | |||||||
| 7,948 | 8,065 | |||||||
| 383 | 241 | |||||||
| 2,133 | 7,403 | |||||||
| 967,488 | 414,029 | |||||||
| 36,924 | — | |||||||
| 36,507 | — | |||||||
| 1,040,919 | 414,029 | |||||||
| (138,230 | ) | (158,941 | ) | |||||
| — | — | |||||||
| 902,689 | 255,088 | |||||||
| 322,031 | 474,505 | |||||||
| 4,548,765 | 344,794 | |||||||
| 18,169 | — | |||||||
| — | (2,780 | ) | ||||||
| — | 440,482 | |||||||
| — | 192,845 | |||||||
| — | — | |||||||
| — | 2,748,401 | |||||||
| 4,566,934 | 3,723,742 | |||||||
| 4,890,581 | 2,507,117 | |||||||
| 13,426 | — | |||||||
| — | (528 | ) | ||||||
| — | (37,524 | ) | ||||||
| — | 20,569 | |||||||
| — | — | |||||||
| — | (599,869 | ) | ||||||
| 4,904,007 | 1,889,765 | |||||||
| 9,470,941 | 5,613,507 | |||||||
| $ | 9,792,972 | $ | 6,088,012 | |||||
| $ | — | $ | 34,274 | |||||
| $ | — | $ | 27 | |||||
Annual Report 85
The Lazard Funds, Inc. Statements of Changes in Net Assets
| Lazard Enhanced Opportunities Portfolio | |||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 750,640 | $ | 288,181 | |||||
| Net realized gain (loss) | 4,011,613 | 237,649 | |||||||
| Net change in unrealized appreciation (depreciation) | (3,002,835 | ) | 1,372,416 | ||||||
| Net increase (decrease) in net assets resulting from operations | 1,759,418 | 1,898,246 | |||||||
| Distributions to shareholders (Note 2(i)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (3,894,678 | ) | (1,185,411 | ) | |||||
| Open Shares | (25,718 | ) | (9,395 | ) | |||||
| Net decrease in net assets resulting from distributions | (3,920,396 | ) | (1,194,806 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 144,578,146 | 11,095,505 | |||||||
| Open Shares | 1,339,923 | 3,369,722 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 3,833,497 | 1,185,411 | |||||||
| Open Shares | 25,718 | 9,395 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (19,956,225 | ) | (2,567,231 | ) | |||||
| Open Shares | (754,032 | ) | (3,436,893 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | 129,067,027 | 9,655,909 | |||||||
| Total increase (decrease) in net assets | 126,906,049 | 10,359,349 | |||||||
| Net assets at beginning of period | 19,704,999 | 9,345,650 | |||||||
| Net assets at end of period | $ | 146,611,048 | $ | 19,704,999 | |||||
The accompanying notes are an integral part of these financial statements.
86 Annual Report
| Lazard Global Dynamic Multi-Asset Portfolio | Lazard Opportunistic Strategies Portfolio | |||||||||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||
| $ | 242,193 | $ | 430,657 | $ | 322,031 | $ | 421,403 | |||||||||
| 5,855,715 | (167,823 | ) | 4,566,934 | 840,299 | ||||||||||||
| (3,742,606 | ) | 1,850,264 | 4,904,007 | 5,372,262 | ||||||||||||
| 2,355,302 | 2,113,098 | 9,792,972 | 6,633,964 | |||||||||||||
| (2,767,564 | ) | (1,164,138 | ) | (3,330,657 | ) | (1,635,417 | ) | |||||||||
| (33,860 | ) | (4,081 | ) | (6,195 | ) | (2,819 | ) | |||||||||
| (2,801,424 | ) | (1,168,219 | ) | (3,336,852 | ) | (1,638,236 | ) | |||||||||
| 1,620,610 | 13,573,016 | 6,166,257 | 4,433,096 | |||||||||||||
| 15,330 | 38,391 | 29,890 | 1,947 | |||||||||||||
| 2,767,530 | 1,164,138 | 3,164,811 | 1,561,574 | |||||||||||||
| 33,860 | 4,081 | 5,712 | 2,617 | |||||||||||||
| (44,259,435 | ) | (5,246,998 | ) | (15,244,058 | ) | (16,379,299 | ) | |||||||||
| (60,231 | ) | (90,981 | ) | (43,911 | ) | (62,305 | ) | |||||||||
| (39,882,336 | ) | 9,441,647 | (5,921,299 | ) | (10,442,370 | ) | ||||||||||
| (40,328,458 | ) | 10,386,526 | 534,821 | (5,446,642 | ) | |||||||||||
| 58,161,035 | 47,774,509 | 78,269,881 | 83,716,523 | |||||||||||||
| $ | 17,832,577 | $ | 58,161,035 | $ | 78,804,702 | $ | 78,269,881 | |||||||||
Annual Report 87
| Lazard Enhanced Opportunities Portfolio | |||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 2,140,850 | 1,043,282 | |||||||
| Shares sold | 15,129,383 | 1,253,802 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 409,533 | 130,284 | |||||||
| Shares redeemed | (2,094,886 | ) | (286,518 | ) | |||||
| Net increase (decrease) | 13,444,030 | 1,097,568 | |||||||
| Shares outstanding at end of period | 15,584,880 | 2,140,850 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 18,359 | 13,910 | |||||||
| Shares sold | 140,785 | 402,978 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 2,738 | 1,035 | |||||||
| Shares redeemed | (79,208 | ) | (399,564 | ) | |||||
| Net increase (decrease) | 64,315 | 4,449 | |||||||
| Shares outstanding at end of period | 82,674 | 18,359 | |||||||
The accompanying notes are an integral part of these financial statements.
88 Annual Report
| Lazard Global Dynamic Multi-Asset Portfolio | Lazard Opportunistic Strategies Portfolio | |||||||||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | Year Ended December 31, 2021 | Year Ended December 31, 2020 | |||||||||||||
| 5,427,381 | 4,403,915 | 7,380,473 | 8,460,555 | |||||||||||||
| 148,571 | 1,431,989 | 552,009 | 460,110 | |||||||||||||
| 274,538 | 110,450 | 279,824 | 148,761 | |||||||||||||
| (4,104,082 | ) | (518,973 | ) | (1,341,303 | ) | (1,688,953 | ) | |||||||||
| (3,680,973 | ) | 1,023,466 | (509,470 | ) | (1,080,082 | ) | ||||||||||
| 1,746,408 | 5,427,381 | 6,871,003 | 7,380,473 | |||||||||||||
| 22,108 | 27,210 | 14,614 | 21,180 | |||||||||||||
| 1,341 | 3,726 | 2,747 | 205 | |||||||||||||
| 3,369 | 387 | 508 | 251 | |||||||||||||
| (5,392 | ) | (9,215 | ) | (4,045 | ) | (7,022 | ) | |||||||||
| (682 | ) | (5,102 | ) | (790 | ) | (6,566 | ) | |||||||||
| 21,426 | 22,108 | 13,824 | 14,614 | |||||||||||||
Annual Report 89
| Lazard Real Assets Portfolio (a) | |||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 474,505 | $ | 344,431 | |||||
| Net realized gain (loss) | 3,723,742 | (39,763 | ) | ||||||
| Net change in unrealized appreciation (depreciation) | 1,889,765 | 538,292 | |||||||
| Net increase (decrease) in net assets resulting from operations | 6,088,012 | 842,960 | |||||||
| Distributions to shareholders (Note 2(i)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (3,880,176 | ) | (890,908 | ) | |||||
| Open Shares | (15,779 | ) | (3,741 | ) | |||||
| Net decrease in net assets resulting from distributions | (3,895,955 | ) | (894,649 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 9,676,948 | 6,113,393 | |||||||
| Open Shares | 94,863 | 1,056,495 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 3,565,581 | 890,908 | |||||||
| Open Shares | 15,779 | 3,741 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (3,364,570 | ) | (451,652 | ) | |||||
| Open Shares | (83,834 | ) | (1,066,899 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | 9,904,767 | 6,545,986 | |||||||
| Total increase (decrease) in net assets | 12,096,824 | 6,494,297 | |||||||
| Net assets at beginning of period | 24,074,256 | 17,579,959 | |||||||
| Net assets at end of period | $ | 36,171,080 | $ | 24,074,256 | |||||
The accompanying notes are an integral part of these financial statements.
90 Annual Report
| Lazard Real Assets Portfolio (a) | |||||||||
| Year Ended December 31, 2021 | Year Ended December 31, 2020 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 2,319,287 | 1,639,120 | |||||||
| Shares sold | 875,067 | 636,605 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 320,239 | 89,265 | |||||||
| Shares redeemed | (301,885 | ) | (45,703 | ) | |||||
| Net increase (decrease) | 893,421 | 680,167 | |||||||
| Shares outstanding at end of period | 3,212,708 | 2,319,287 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 11,188 | 6,050 | |||||||
| Shares sold | 8,039 | 119,887 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 1,417 | 373 | |||||||
| Shares redeemed | (7,785 | ) | (115,122 | ) | |||||
| Net increase (decrease) | 1,671 | 5,138 | |||||||
| Shares outstanding at end of period | 12,859 | 11,188 | |||||||
| (a) | Consolidated Statements of Changes in Net Assets. |
The accompanying notes are an integral part of these financial statements.
Annual Report 91
The Lazard Funds, Inc. Financial Highlights
LAZARD ENHANCED OPPORTUNITIES PORTFOLIO
| Selected data for a share | ||||||||||||||||||||
| of capital stock outstanding | Year Ended | |||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |||||||||||||||
| Institutional Shares | ||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.13 | $ | 8.84 | $ | 8.31 | $ | 8.67 | $ | 9.16 | ||||||||||
| Income (Loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss) (a) | 0.14 | # | 0.20 | 0.10 | 0.06 | 0.11 | ^ | |||||||||||||
| Net realized and unrealized gain (loss) | 0.48 | 0.69 | 0.52 | (0.20 | ) | 0.40 | ||||||||||||||
| Total from investment operations | 0.62 | 0.89 | 0.62 | (0.14 | ) | 0.51 | ||||||||||||||
| Less distributions from: | ||||||||||||||||||||
| Net investment income | (0.05 | ) | (0.22 | ) | — | (0.10 | ) | (0.17 | ) | |||||||||||
| Net realized gains | (0.34 | ) | (0.38 | ) | (0.09 | ) | (0.12 | ) | (0.83 | ) | ||||||||||
| Total distributions | (0.39 | ) | (0.60 | ) | (0.09 | ) | (0.22 | ) | (1.00 | ) | ||||||||||
| Net asset value, end of period | $ | 9.36 | $ | 9.13 | $ | 8.84 | $ | 8.31 | $ | 8.67 | ||||||||||
| Total Return (b) | 6.81 | %# | 10.11 | % | 7.44 | % | –1.66 | % | 5.56 | %^ | ||||||||||
| Ratios and Supplemental Data: | ||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 145,836 | $ | 19,537 | $ | 9,223 | $ | 16,184 | $ | 15,206 | ||||||||||
| Ratios to average net assets: | ||||||||||||||||||||
| Net expenses | 1.70 | %# | 2.23 | % | 2.71 | % | 2.36 | % | 2.78 | %^ | ||||||||||
| Gross expenses | 2.05 | % | 3.79 | % | 5.52 | % | 3.80 | % | 5.02 | %^ | ||||||||||
| Gross expenses, excluding expenses on securities sold short | 1.54 | % | 2.82 | % | 4.06 | % | 2.71 | % | 3.45 | % | ||||||||||
| Net investment income (loss) | 1.47 | %# | 2.22 | % | 1.19 | % | 0.73 | % | 1.20 | %^ | ||||||||||
| Portfolio turnover rate: | ||||||||||||||||||||
| Excluding securities sold short | 168 | % | 167 | % | 272 | % | 312 | % | 210 | % | ||||||||||
| Including securities sold short | 341 | % | 241 | % | 354 | % | 409 | % | 310 | % | ||||||||||
The accompanying notes are an integral part of these financial statements.
92 Annual Report
| Selected data for a share | ||||||||||||||||||||
| of capital stock outstanding | Year Ended | |||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |||||||||||||||
| Open Shares | ||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.13 | $ | 8.82 | $ | 8.30 | $ | 8.65 | $ | 9.15 | ||||||||||
| Income (Loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss) (a) | 0.13 | # | 0.16 | 0.10 | 0.04 | 0.10 | ^ | |||||||||||||
| Net realized and unrealized gain (loss) | 0.47 | 0.70 | 0.51 | (0.19 | ) | 0.37 | ||||||||||||||
| Total from investment operations | 0.60 | 0.86 | 0.61 | (0.15 | ) | 0.47 | ||||||||||||||
| Less distributions from: | ||||||||||||||||||||
| Net investment income | (0.02 | ) | (0.17 | ) | — | (0.08 | ) | (0.14 | ) | |||||||||||
| Net realized gains | (0.34 | ) | (0.38 | ) | (0.09 | ) | (0.12 | ) | (0.83 | ) | ||||||||||
| Total distributions | (0.36 | ) | (0.55 | ) | (0.09 | ) | (0.20 | ) | (0.97 | ) | ||||||||||
| Net asset value, end of period | $ | 9.37 | $ | 9.13 | $ | 8.82 | $ | 8.30 | $ | 8.65 | ||||||||||
| Total Return (b) | 6.55 | %# | 9.83 | % | 7.33 | % | –1.80 | % | 5.16 | %^ | ||||||||||
| Ratios and Supplemental Data: | ||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 775 | $ | 168 | $ | 123 | $ | 105 | $ | 117 | ||||||||||
| Ratios to average net assets: | ||||||||||||||||||||
| Net expenses | 1.92 | %# | 2.45 | % | 2.83 | % | 2.60 | % | 3.01 | %^ | ||||||||||
| Gross expenses | 2.99 | % | 4.94 | % | 13.76 | % | 14.49 | % | 16.40 | %^ | ||||||||||
| Gross expenses, excluding expenses on securities sold short | 2.52 | % | 3.99 | % | 12.30 | % | 13.40 | % | 14.85 | % | ||||||||||
| Net investment income (loss) | 1.42 | %# | 1.75 | % | 1.10 | % | 0.48 | % | 1.06 | %^ | ||||||||||
| Portfolio turnover rate: | ||||||||||||||||||||
| Excluding securities sold short | 168 | % | 167 | % | 272 | % | 312 | % | 210 | % | ||||||||||
| Including securities sold short | 341 | % | 241 | % | 354 | % | 409 | % | 310 | % | ||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 93
| # | A one-time voluntary reimbursement by the administrator increased the net investment income per share amount of $0.01 per share. For Institutional Shares and Open Shares, the one-time voluntary reimbursement by the administrator increased the total return ratio by 0.11%, decreased the net expense ratios by 0.07% and 0.06% respectively and increased the net investment income (loss) ratio by 0.06%. |
| ^ | A one-time voluntary reimbursement by the administrator increased the net investment income per share amount of $0.04 per share. For Institutional Shares and Open Shares, the one-time voluntary reimbursement by the administrator increased the total return ratio by 0.49%, decreased the gross expense and net expense ratios by 0.44% and increased the net investment income (loss) ratio by 0.44%. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
94 Annual Report
LAZARD GLOBAL DYNAMIC MULTI-ASSET PORTFOLIO
| Selected data for a share | ||||||||||||||||||||
| of capital stock outstanding | Year Ended | |||||||||||||||||||
| throughout the period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |||||||||||||||
| Institutional Shares | ||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.67 | $ | 10.78 | $ | 9.27 | $ | 11.49 | $ | 10.00 | ||||||||||
| Income (Loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss) (a) | 0.10 | 0.08 | 0.14 | 0.16 | 0.15 | |||||||||||||||
| Net realized and unrealized gain (loss) | 1.18 | 0.02 | 1.51 | (0.92 | ) | 1.92 | ||||||||||||||
| Total from investment operations | 1.28 | 0.10 | 1.65 | (0.76 | ) | 2.07 | ||||||||||||||
| Less distributions from: | ||||||||||||||||||||
| Net investment income | (0.16 | ) | (0.21 | ) | (0.14 | ) | (0.20 | ) | (0.14 | ) | ||||||||||
| Net realized gains | (1.70 | ) | — | — | (1.26 | ) | (0.44 | ) | ||||||||||||
| Total distributions | (1.86 | ) | (0.21 | ) | (0.14 | ) | (1.46 | ) | (0.58 | ) | ||||||||||
| Net asset value, end of period | $ | 10.09 | $ | 10.67 | $ | 10.78 | $ | 9.27 | $ | 11.49 | ||||||||||
| Total Return (b) | 12.17 | % | 1.00 | % | 17.80 | % | –6.35 | % | 20.69 | % | ||||||||||
| Ratios and Supplemental Data: | ||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 17,617 | $ | 57,925 | $ | 47,481 | $ | 42,577 | $ | 68,761 | ||||||||||
| Ratios to average net assets: | ||||||||||||||||||||
| Net expenses | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | ||||||||||
| Gross expenses | 1.70 | % | 1.32 | % | 1.45 | % | 1.34 | % | 1.42 | % | ||||||||||
| Net investment income (loss) | 0.91 | % | 0.84 | % | 1.36 | % | 1.36 | % | 1.40 | % | ||||||||||
| Portfolio turnover rate | 83 | % | 173 | % | 125 | % | 120 | % | 102 | % | ||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 95
| Selected data for a share | ||||||||||||||||||||
| of capital stock outstanding | Year Ended | |||||||||||||||||||
| throughout the period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |||||||||||||||
| Open Shares | ||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.68 | $ | 10.78 | $ | 9.27 | $ | 11.49 | $ | 10.00 | ||||||||||
| Income (Loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss) (a) | 0.08 | 0.06 | 0.11 | 0.12 | 0.12 | |||||||||||||||
| Net realized and unrealized gain (loss) | 1.16 | 0.03 | 1.51 | (0.91 | ) | 1.91 | ||||||||||||||
| Total from investment operations | 1.24 | 0.09 | 1.62 | (0.79 | ) | 2.03 | ||||||||||||||
| Less distributions from: | ||||||||||||||||||||
| Net investment income | (0.16 | ) | (0.19 | ) | (0.11 | ) | (0.17 | ) | (0.10 | ) | ||||||||||
| Net realized gains | (1.70 | ) | — | — | (1.26 | ) | (0.44 | ) | ||||||||||||
| Total distributions | (1.86 | ) | (0.19 | ) | (0.11 | ) | (1.43 | ) | (0.54 | ) | ||||||||||
| Net asset value, end of period | $ | 10.06 | $ | 10.68 | $ | 10.78 | $ | 9.27 | $ | 11.49 | ||||||||||
| Total Return (b) | 11.78 | % | 0.84 | % | 17.46 | % | -6.64 | % | 20.33 | % | ||||||||||
| Ratios and Supplemental Data: | ||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 216 | $ | 236 | $ | 293 | $ | 225 | $ | 414 | ||||||||||
| Ratios to average net assets: | ||||||||||||||||||||
| Net expenses | 1.15 | % | 1.15 | % | 1.18 | % | 1.20 | % | 1.20 | % | ||||||||||
| Gross expenses | 3.95 | % | 3.09 | % | 5.45 | % | 4.20 | % | 5.79 | % | ||||||||||
| Net investment income (loss) | 0.69 | % | 0.61 | % | 1.10 | % | 1.07 | % | 1.09 | % | ||||||||||
| Portfolio turnover rate | 83 | % | 173 | % | 125 | % | 120 | % | 102 | % | ||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
96 Annual Report
LAZARD OPPORTUNISTIC STRATEGIES PORTFOLIO
| Selected data for a share | ||||||||||||||||||||
| of capital stock outstanding | Year Ended | |||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |||||||||||||||
| Institutional Shares | ||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.58 | $ | 9.87 | $ | 8.74 | $ | 10.60 | $ | 9.70 | ||||||||||
| Income (Loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss) (a) | 0.05 | 0.05 | 0.10 | 0.14 | 0.10 | |||||||||||||||
| Net realized and unrealized gain (loss) | 1.32 | 0.88 | 1.23 | (1.48 | ) | 1.62 | ||||||||||||||
| Total from investment operations | 1.37 | 0.93 | 1.33 | (1.34 | ) | 1.72 | ||||||||||||||
| Less distributions from: | ||||||||||||||||||||
| Net investment income | (0.04 | ) | (0.05 | ) | (0.12 | ) | (0.02 | ) | (0.14 | ) | ||||||||||
| Net realized gains | (0.46 | ) | (0.17 | ) | (0.08 | ) | (0.48 | ) | (0.68 | ) | ||||||||||
| Return of capital | — | — | — | (0.02 | ) | — | ||||||||||||||
| Total distributions | (0.50 | ) | (0.22 | ) | (0.20 | ) | (0.52 | ) | (0.82 | ) | ||||||||||
| Net asset value, end of period | $ | 11.45 | $ | 10.58 | $ | 9.87 | $ | 8.74 | $ | 10.60 | ||||||||||
| Total Return (b) | 12.96 | % | 9.47 | % | 15.16 | % | –12.72 | % | 17.74 | % | ||||||||||
| Ratios and Supplemental Data: | ||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 78,647 | $ | 78,116 | $ | 83,509 | $ | 102,783 | $ | 151,767 | ||||||||||
| Ratios to average net assets: | ||||||||||||||||||||
| Net expenses | 1.11 | % | 1.04 | % | 1.22 | % | 1.02 | % | 1.05 | % | ||||||||||
| Gross expenses | 1.28 | % | 1.30 | % | 1.43 | % | 1.15 | % | 1.18 | % | ||||||||||
| Gross expenses, excluding expenses on securities sold short | 1.19 | % | 1.29 | % | 1.23 | % | 1.15 | %† | 1.15 | % | ||||||||||
| Net investment income (loss) | 0.40 | % | 0.55 | % | 1.08 | % | 1.32 | % | 0.99 | % | ||||||||||
| Portfolio turnover rate: | ||||||||||||||||||||
| Excluding securities sold short | 65 | % | 88 | % | 82 | % | 227 | % | 142 | % | ||||||||||
| Including securities sold short | 65 | % | 94 | % | 99 | % | N/A | %† | 153 | % | ||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 97
| Selected data for a share | ||||||||||||||||||||
| of capital stock outstanding | Year Ended | |||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |||||||||||||||
| Open Shares | ||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.52 | $ | 9.82 | $ | 8.69 | $ | 10.55 | $ | 9.65 | ||||||||||
| Income (Loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss) (a) | 0.02 | 0.03 | 0.07 | 0.10 | 0.05 | |||||||||||||||
| Net realized and unrealized gain (loss) | 1.31 | 0.86 | 1.23 | (1.46 | ) | 1.64 | ||||||||||||||
| Total from investment operations | 1.33 | 0.89 | 1.30 | (1.36 | ) | 1.69 | ||||||||||||||
| Less distributions from: | ||||||||||||||||||||
| Net investment income | (0.01 | ) | (0.02 | ) | (0.09 | ) | — | (0.11 | ) | |||||||||||
| Net realized gains | (0.46 | ) | (0.17 | ) | (0.08 | ) | (0.48 | ) | (0.68 | ) | ||||||||||
| Return of capital | — | — | — | (0.02 | ) | — | ||||||||||||||
| Total distributions | (0.47 | ) | (0.19 | ) | (0.17 | ) | (0.50 | ) | (0.79 | ) | ||||||||||
| Net asset value, end of period | $ | 11.38 | $ | 10.52 | $ | 9.82 | $ | 8.69 | $ | 10.55 | ||||||||||
| Total Return (b) | 12.65 | % | 9.14 | % | 14.91 | % | –13.05 | % | 17.48 | % | ||||||||||
| Ratios and Supplemental Data: | ||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 157 | $ | 154 | $ | 208 | $ | 286 | $ | 428 | ||||||||||
| Ratios to average net assets: | ||||||||||||||||||||
| Net expenses | 1.36 | % | 1.28 | % | 1.51 | % | 1.32 | % | 1.34 | % | ||||||||||
| Gross expenses | 4.06 | % | 7.75 | % | 3.78 | % | 4.22 | % | 3.87 | % | ||||||||||
| Gross expenses, excluding expenses on securities sold short | 3.97 | % | 7.74 | % | 3.58 | % | 4.22 | %† | 3.85 | % | ||||||||||
| Net investment income (loss) | 0.15 | % | 0.31 | % | 0.76 | % | 1.00 | % | 0.53 | % | ||||||||||
| Portfolio turnover rate: | ||||||||||||||||||||
| Excluding securities sold short | 65 | % | 88 | % | 82 | % | 227 | % | 142 | % | ||||||||||
| Including securities sold short | 65 | % | 94 | % | 99 | % | N/A | %† | 153 | % | ||||||||||
| † | No securities sold short during the year. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
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LAZARD REAL ASSETS PORTFOLIO^
| Selected data for a share | ||||||||||||||||||||
| of capital stock outstanding | Year Ended | |||||||||||||||||||
| throughout each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |||||||||||||||
| Institutional Shares | ||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.33 | $ | 10.69 | $ | 9.42 | $ | 10.71 | $ | 10.00 | ||||||||||
| Income (Loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss) (a) | 0.17 | 0.17 | 0.16 | 0.16 | 0.19 | |||||||||||||||
| Net realized and unrealized gain (loss) | 2.04 | (0.12 | ) | 1.35 | (0.96 | ) | 0.78 | |||||||||||||
| Total from investment operations | 2.21 | 0.05 | 1.51 | (0.80 | ) | 0.97 | ||||||||||||||
| Less distributions from: | ||||||||||||||||||||
| Net investment income | (1.26 | ) | (0.20 | ) | (0.24 | ) | (0.25 | ) | (0.13 | ) | ||||||||||
| Net realized gains | (0.07 | ) | (0.21 | ) | — | (b) | (0.24 | ) | (0.13 | ) | ||||||||||
| Total distributions | (1.33 | ) | (0.41 | ) | (0.24 | ) | (0.49 | ) | (0.26 | ) | ||||||||||
| Net asset value, end of period | $ | 11.21 | $ | 10.33 | $ | 10.69 | $ | 9.42 | $ | 10.71 | ||||||||||
| Total Return (c) | 21.60 | % | 0.61 | % | 16.07 | % | –7.47 | % | 9.80 | % | ||||||||||
| Ratios and Supplemental Data: | ||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 36,027 | $ | 23,959 | $ | 17,515 | $ | 16,164 | $ | 17,812 | ||||||||||
| Ratios to average net assets: | ||||||||||||||||||||
| Net expenses | 0.80 | % | 0.86 | % | 0.90 | % | 0.90 | % | 0.90 | % | ||||||||||
| Gross expenses | 1.29 | % | 2.13 | % | 2.20 | % | 2.04 | % | 3.13 | % | ||||||||||
| Net investment income (loss) | 1.49 | % | 1.73 | % | 1.59 | % | 1.53 | % | 1.79 | % | ||||||||||
| Portfolio turnover rate | 35 | % | 109 | % | 44 | % | 72 | % | 76 | % | ||||||||||
The accompanying notes are an integral part of these financial statements.
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| Selected data for a | ||||||||||||||||||||
| share of capital stock | For the Period | |||||||||||||||||||
| outstanding throughout | Year Ended | 1/9/17* to | ||||||||||||||||||
| each period | 12/31/21 | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |||||||||||||||
| Open Shares | ||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.34 | $ | 10.67 | $ | 9.41 | $ | 10.70 | $ | 10.03 | ||||||||||
| Income (Loss) from investment operations: | ||||||||||||||||||||
| Net investment income (loss) (a) | 0.13 | 0.17 | 0.14 | 0.14 | 0.18 | |||||||||||||||
| Net realized and unrealized gain (loss) | 2.05 | (0.14 | ) | 1.33 | (0.96 | ) | 0.74 | |||||||||||||
| Total from investment operations | 2.18 | 0.03 | 1.47 | (0.82 | ) | 0.92 | ||||||||||||||
| Less distributions from: | ||||||||||||||||||||
| Net investment income | (1.23 | ) | (0.15 | ) | (0.21 | ) | (0.23 | ) | (0.12 | ) | ||||||||||
| Net realized gains | (0.07 | ) | (0.21 | ) | — | (b) | (0.24 | ) | (0.13 | ) | ||||||||||
| Total distributions | (1.30 | ) | (0.36 | ) | (0.21 | ) | (0.47 | ) | (0.25 | ) | ||||||||||
| Net asset value, end of period | $ | 11.22 | $ | 10.34 | $ | 10.67 | $ | 9.41 | $ | 10.70 | ||||||||||
| Total Return (c) | 21.28 | % | 0.42 | % | 15.70 | % | –7.70 | % | 9.17 | % | ||||||||||
| Ratios and Supplemental Data: | ||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 144 | $ | 116 | $ | 65 | $ | 43 | $ | 135 | ||||||||||
| Ratios to average net assets (d): | ||||||||||||||||||||
| Net expenses | 1.05 | % | 1.13 | % | 1.10 | % | 1.15 | % | 1.15 | % | ||||||||||
| Gross expenses | 5.90 | % | 4.64 | % | 23.75 | % | 13.72 | % | 20.65 | % | ||||||||||
| Net investment income (loss) | 1.16 | % | 1.77 | % | 1.39 | % | 1.29 | % | 1.69 | % | ||||||||||
| Portfolio turnover rate | 35 | % | 109 | % | 44 | % | 72 | % | 76 | % | ||||||||||
| ^ | Consolidated Financial Highlights. |
| * | The inception date for the Open Shares was January 9, 2017. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Amount is less than $0.01 per share. |
| (c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (d) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
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The Lazard Funds, Inc. Notes to Financial Statements
December 31, 2021
1. Organization
The Lazard Funds, Inc. was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of December 31, 2021, the Fund was comprised of thirty no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of the Lazard Enhanced Opportunities Portfolio (“Enhanced Opportunities”), the Lazard Global Dynamic Multi-Asset Portfolio (“Global Dynamic Multi-Asset”), the Lazard Opportunistic Strategies Portfolio (“Opportunistic Strategies”) and Lazard Real Assets Portfolio (“Real Assets”). The financial statements of the other twenty-six Portfolios are presented separately.
The Global Dynamic Multi-Asset, Opportunistic Strategies, and Real Assets Portfolios are operated as “diversified” funds, as defined in the 1940 Act. The Lazard Enhanced Opportunities Portfolio is operated as a “non-diversified” fund, as defined in the 1940 Act.
Each Portfolio currently offers Institutional Shares and Open Shares. Each share class is identical except as to minimum investment requirements; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Fund’s prospectus).
Lazard Real Assets Portfolio has a wholly-owned subsidiary, Lazard Real Assets Portfolio, Ltd. (the “Subsidiary”), organized under the laws of the Cayman Islands. The Subsidiary acts as an investment vehicle for the Portfolio in order to effect certain investments on behalf of the Portfolio, consistent with its investment objective and policies as described in its prospectus. In addition to investing directly in commodity-linked instruments, the Portfolio may gain exposure to the commodities markets by investing up to 25% of its total assets in the Subsidiary. The financial statements of the Portfolio have been consolidated and include the accounts of both the Portfolio and the Subsidiary. All inter-company balances and transactions have been eliminated in consolidation. As of December 31, 2021, net assets of the Portfolio
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were $36,171,080 of which $7,055,332, or 19.51%, represented the Portfolio’s ownership of all issued shares and voting rights of the Subsidiary.
2. Significant Accounting Policies
The accompanying financial statements are presented in conformity with GAAP. The Portfolio is an investment company and therefore applies specialized accounting guidance in accordance with Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:
(a) Valuation of Investments—Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants, are valued at the last reported sales price (for US listed equity securities) or the closing price (for non-US listed equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the Nasdaq, the Nasdaq Official Closing Price. If there is no available closing price for a non-US listed equity security, the last reported sales price is used. If there are no reported sales of a security on the valuation date, the security is valued at the most recent quoted bid price on such date reported by such principal exchange or market. Futures contracts are valued at the settlement price on the exchange on which the contract is principally traded. Over the counter swap agreements are valued by an independent pricing service and centrally cleared swaps are valued at the last reported sale on the clearing exchange. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s net asset value (“NAV”) per share.
Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by independent pricing services which are based on, among other things, trading in securities with similar characteristics, brokers’ quotations and/or a matrix system which considers such factors as other security prices, yields and maturities.
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Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trading on certain non-US securities exchanges or markets, such as those in Europe and Asia, ordinarily may be completed before the close of business on each business day in New York (i.e., a day on which the New York Stock Exchange (the “NYSE”) is open). In addition, securities trading in a particular non-US country or countries, may not take place on all business days in New York and on which the NAV of a Portfolio is calculated.
If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when a Portfolio’s NAV is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Fund’s Board of Directors (the “Board”). The fair value of non-US securities may be determined with the assistance of an independent pricing service using correlations between the movement of prices of such securities and indices of US securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. Certain non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of the Portfolio’s assets on days when Portfolio shareholders may not be able to buy or sell Portfolio shares.
The Valuation Committee of the Investment Manager, which is subject to the oversight of the Board, may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio management team also will be considered.
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The effect of using fair value pricing is that the NAV of a Portfolio will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.
(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income and dividend expenses on short sales are recorded on the ex-dividend date except for certain dividends from non-US securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by a Portfolio. Interest income, if any, is accrued daily. A Portfolio amortizes premiums and accretes discounts on fixed-income securities using the effective yield method.
A Portfolio may be subject to taxes imposed by non-US countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized and/or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income earned or capital gains (realized and/or unrealized) from the applicable Portfolio securities.
(c) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Fund are maintained in US dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.
The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such
104 Annual Report
fluctuations are included in net realized and unrealized gain (loss) on investments.
A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Daily fluctuations in the value of forward currency contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, the Portfolio records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed. Net realized gain (loss) on foreign currency transactions and forward currency contracts represent net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency translations reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.
During the year ended December 31, 2021, the Enhanced Opportunities, Global Dynamic Multi-Asset and Real Assets Portfolios traded in forward currency contracts.
(d) Futures Contracts—Futures contracts are purchased or sold to gain exposure to, or manage exposure from, changes in the value of equity securities or foreign currencies and changes in interest rates.
Futures contracts are exchange-traded agreements between a Portfolio and a counter-party to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, a Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a
Annual Report 105
contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash collateral pledged for futures contracts in the Statement of Assets and Liabilities.
Securities may be deposited as initial margin. If applicable, any cash deposited and held on margin is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, a Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as receivables (or payables) for variation margin on open futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount of the contract at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
During the year ended December 31, 2021, the Real Assets Portfolio traded in futures contracts.
(e) Swap Agreements—Swap agreements on equity securities involve commitments to pay interest in exchange for a market linked return based on a notional amount. The counterparty pays out the total return of the equity security or basket of equity securities and, in return, receives a regular stream of payments, based on an agreed-upon interest rate. To the extent the total return of the security or basket of securities underlying the transaction exceeds (or falls short of) the offsetting interest rate obligation, a Portfolio will receive a payment from (or make a payment to) the counterparty.
Commodity-linked swap agreements involve commitments to pay interest in exchange for a commodity-linked return based on a notional amount. To the extent the return of the reference commodity
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or commodity index or basket of reference commodities or commodity indexes underlying the transaction exceeds (or falls short of) the offsetting interest rate obligation, a Portfolio will receive a payment from (or make a payment to) the counterparty.
Swap agreements generally are valued by an independent pricing service, and the change in value, if any, is recorded as unrealized appreciation (depreciation) on swap agreements in a Portfolio’s accompanying Statement of Assets and Liabilities. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreements in a Portfolio’s accompanying Statement of Operations, in addition to any realized gain (loss) recorded upon the termination of swap agreements.
During the year ended December 31, 2021, the Enhanced Opportunities and Real Assets Portfolios traded in swap agreements.
(f) Options Transactions—Put and call options purchased are accounted for in the same manner as portfolio securities. Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. When a Portfolio writes an option, the premium received by the Portfolio is recorded as a liability and is subsequently adjusted to the current market value of the option written. When a Portfolio writes a call option, such option is typically “covered,” meaning that it holds the underlying instrument subject to being called by the option counterparty. When the Portfolio writes a put option, cash is segregated in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash collateral in the Statement of Assets and Liabilities. If a Portfolio writes an option, it bears the market risk of an unfavorable change in the price of the security underlying the written option. The risk of loss is unlimited for uncovered written call options. For uncovered written put options, the risk of loss is limited to the difference between the strike price of the option and the premiums received upon writing the option.
During the year ended December 31, 2021, the Enhanced Opportunities Portfolio traded in options.
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(g) Short Sales—A short sale is a transaction in which a Portfolio sells securities it does not own but has borrowed in anticipation of a decline in the market price of the securities. The initial amount of a short sale is recorded as a liability which is marked-to-market daily. Fluctuations in the value of the short liability are recorded as unrealized gains or losses. A Portfolio realizes a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a long position owned). Short sales by a Portfolio involve certain risks and special considerations. Possible losses from short sales differ from losses that could be incurred from a purchase of a security because losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested. The Portfolio may have to pay a fee to borrow the particular security and is liable to the buyer for any dividends or interest payable on securities while those securities are in a short position. These dividends and interest amounts are an expense of the Portfolio. The Portfolio designates collateral consisting of cash, US government securities or other liquid assets sufficient to collateralize the market value of short positions.
Proceeds from short sales are generally retained in cash accounts or invested in securities that are cash equivalents. With regard to securities borrowed as of December 31, 2021, pursuant to short sale arrangements, a Portfolio has a right to set off any assets held (including the borrowed securities) or obligations owed to the lender (State Street), in the event of the lender’s default, against any obligations owed by the lender to the Portfolio under any agreement or collateral document. At December 31, 2021, the Enhanced Opportunities and Opportunistic Strategies Portfolios had pledged $164,118,910 and $2,120,019 of securities held long as collateral under such arrangements.
For the year ended December 31, 2021, the following Portfolios received proceeds from securities sold short and purchases to cover short positions as follows:
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| Portfolio | Proceeds from Securities Sold Short | Purchased to Cover Short Positions | ||||||
| Enhanced Opportunities | $191,035,936 | $94,507,239 | ||||||
| Opportunistic Strategies | 3,238,622 | 1,571,751 | ||||||
(h) Federal Income Taxes—The Fund’s policy is for each Portfolio to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.
At December 31, 2021, the Portfolios had no unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains.
During the year ended December 31, 2021, the following Portfolios utilized realized capital loss carryovers from previous years as follows:
| Portfolio | Amounts | |||
| Global Dynamic Multi-Asset | $896,176 | |||
Under current tax law, post-October capital losses or certain late-year ordinary losses, as defined by the Code, within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the tax year ended December 31, 2021, the following Portfolios elected to defer such losses as follows:
| Portfolio | Post-October Capital Loss Deferral | Late-Year Ordinary Loss Deferral | ||||||
| Opportunistic Strategies | $314,631 | $— | ||||||
| Real Assets | 7,593 | — | ||||||
For federal income tax purposes, the aggregate cost, aggregate gross unrealized appreciation, aggregate gross unrealized depreciation and the net unrealized appreciation (depreciation) were as follows:
Annual Report 109
| Portfolio | Aggregate Cost | Aggregate Gross Unrealized Appreciation | Aggregate Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
| Enhanced Opportunities | $146,466,306 | $ 7,829,731 | $12,267,755 | $ (4,438,024 | ) | |||||||||||
| Global Dynamic Multi-Asset | 14,307,019 | 3,831,645 | 329,492 | 3,502,153 | ||||||||||||
| Opportunistic Strategies | 63,288,976 | 15,763,154 | 151,382 | 15,611,772 | ||||||||||||
| Real Assets | 34,256,155 | 794,541 | 584,352 | 210,189 | ||||||||||||
Management has analyzed the Portfolios, tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. Each Portfolio files a US federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
(i) Dividends and Distributions—For each Portfolio, income dividends are normally declared each business day and paid annually, except that the Real Assets Portfolio’s dividends from net investment income (if any), will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders, but may be distributed more frequently. Differences in per share distributions, by class, are generally due to differences in class specific expenses.
Net income and realized gains from investments held by the Subsidiary are treated as ordinary income for tax purposes. If a net loss is realized by the Subsidiary in any taxable year, the loss will generally not be available to offset the Real Assets Portfolio’s
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ordinary income and/or capital gains for that year, or any future tax year.
The Lazard Global Dynamic Multi-Asset Portfolio used equalization during the year on its 2021 tax return, and has elected to treat as a distribution of investment company taxable income and net capital gain the portion of redemption proceeds paid to redeeming shareholders that represents the redeeming shareholders’ portion of the Portfolio’s undistributed investment company taxable income and net capital gain. This practice, which involves the use of equalization accounting, will have the effect of reducing the amount of income and gains that the Portfolio would otherwise be required to distribute as dividends to shareholders in order for the Portfolio to avoid federal income and excise taxes. This practice reduces the amount of distributions required to be made to non-redeeming shareholders and defers the recognition of taxable income by such shareholders. However, since the amount of any undistributed income will be reflected in the value of the Portfolio’s shares, the total return on a shareholder’s investment is not affected by the Portfolio’s use of equalization.
Income and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency transactions, wash sales, distributions redesignations, Treasury Inflation-Protected Securities, currency straddles, passive foreign investment company gains and losses, deemed dividends on convertible debt, equalization accounting (as described above), straddles, certain fixed-income securities, expenses, derivatives, return of capital distributions and distributions from real estate investment trusts (“REITs”).
The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:
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| Portfolio | Paid in Capital | Distributable Earnings (Accumulated Loss) | ||||||
| Enhanced Opportunities | $ | (238 | ) | $ | 238 | |||
| Global Dynamic Multi-Asset | 1,932,028 | (1,932,028 | ) | |||||
| Real Assets | 3,023,402 | (3,023,402 | ) | |||||
The tax character of dividends and distributions paid during the years ended December 31, were as follows:
| Ordinary Income | Long-Term Capital Gain | ||||||||||||||||
| Portfolio | 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Enhanced Opportunities | $3,019,452 | $1,194,806 | $ 900,944 | $ — | |||||||||||||
| Global Dynamic Multi-Asset | 2,801,424 | 1,168,219 | — | — | |||||||||||||
| Opportunistic Strategies | 1,938,153 | 378,002 | 1,398,699 | 1,260,234 | |||||||||||||
| Real Assets | 3,788,571 | 427,792 | 107,384 | 466,857 | |||||||||||||
At December 31, 2021, the components of distributable earnings (accumulated loss), on a tax basis, were as follows:
| Portfolio | Undistributed Ordinary Income (Deferred Ordinary Losses) | Undistributed Long-Term Capital Gain (Deferred Capital Loss) | Net Unrealized Appreciation (Depreciation) Including Foreign Currency | |||||||||
| Enhanced Opportunities | $ | 1,982,777 | $ | 321,553 | $ | (4,476,922 | ) | |||||
| Global Dynamic Multi-Asset | 55,668 | 29,578 | 3,466,196 | |||||||||
| Opportunistic Strategies | — | 1,235,098 | 15,608,185 | |||||||||
| Real Assets | 94,391 | 30,720 | 420,094 | |||||||||
(j) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc. and Lazard Global Total Return and Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios primarily on the basis of relative net assets. The Portfolios accrue distribution and service (12b-1) fees to Open Shares. Each Portfolio’s income, expenses (other than class specific expenses) and realized and unrealized gains and losses are allocated proportionally each day
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between its classes based upon the relative net assets of each class.
(k) Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates.
(l) Net Asset Value—The NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. The Fund values securities and other assets for which market quotations are readily available at market value. Securities and other assets for which current market quotations are not readily available are valued at fair value as determined in good faith in accordance with procedures approved by the Board.
3. Investment Management, Administration, Custody, Distribution and Transfer Agency Agreements
The Fund, on behalf of the Portfolios, has entered into a management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager manages the investment operations of each Portfolio and the assets of each Portfolio including the purchase, retention and disposition thereof, in accordance with the Portfolio’s investment objectives, policies, and restrictions, and provides the Portfolios with administrative, operational and compliance assistance services. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:
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| Portfolio | Annual Rate | |||
| Enhanced Opportunities | 0.95 | % | ||
| Global Dynamic Multi-Asset | 0.80 | |||
| Opportunistic Strategies | 1.00 | |||
| Real Assets | 0.65 | |||
The Investment Manager provides investment management and other services to the Subsidiary. The Investment Manager does not receive separate compensation from the Subsidiary for providing such services. However, the Real Assets Portfolio pays the Investment Manager based on its net assets, which include the assets of the Subsidiary.
The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse each Portfolio until April 30, 2022 if the aggregate direct expenses of a Portfolio, exclusive of taxes, brokerage, interest on borrowings, dividend and interest expenses on securities sold short, fees and expenses of “Acquired Funds” (as defined in Form N-1A), fees and expenses related to filing foreign tax reclaims and extraordinary expenses, exceed an applicable percentage of the value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name in the table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expenses.
| Portfolio | Institutional Shares | Open Shares | ||||||
| Enhanced Opportunities | 1.25 | % | 1.50 | % | ||||
| Global Dynamic Multi-Asset | 0.90 | 1.15 | ||||||
| Opportunistic Strategies | 1.02 | 1.27 | ||||||
| Real Assets | 0.80 | 1.05 | ||||||
During the year ended December 31, 2021, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:
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| Institutional Shares | Open Shares | ||||||||||||||||
| Portfolio | Management Fees Waived | Expenses Reimbursed | Management Fees Waived | Expenses Reimbursed |
|||||||||||||
| Enhanced Opportunities | $144,045 | $— | $5,409 | $ 378 | |||||||||||||
| Global Dynamic Multi-Asset | 211,993 | — | 1,752 | 4,369 | |||||||||||||
| Opportunistic Strategies | 134,092 | — | 1,534 | 2,604 | |||||||||||||
| Real Assets | 154,267 | — | 626 | 4,048 | |||||||||||||
The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.
State Street serves as the Fund’s custodian and provides the Fund with certain administrative services.
The Fund has a distribution agreement with Lazard Asset Management Securities LLC (the “Distributor”), a wholly-owned subsidiary of the Investment Manager, to serve as the distributor for shares of each Portfolio. The Distributor bears, amongst other expenses, the cost of preparing and distributing materials used by the Distributor in connection with its offering Portfolio shares and other advertising and promotional expenses.
Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net assets of its Open Shares, for certain distribution activities and providing services to holders of the Portfolio’s Open Shares. The Distributor may make payments to third parties such as financial institutions, securities dealers and other industry professionals in respect of these services.
DST is the Fund’s transfer agent and dividend disbursing agent.
4. Directors’ Compensation
Certain Directors of the Fund are officers of the Investment Manager. For 2021, the annual compensation for each Director who is not an affiliated person of the Investment Manager or any of its affiliates that was paid by all of the funds in the Lazard Fund Complex was, as applicable: (1) an annual fee of $237,000, (2) an additional annual retainer of $33,700 to the lead Independent
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Director, and (3) an additional annual fee of $23,500 to the Audit Committee Chair. Effective January 2022, the annual compensation for each Director who is not an affiliated person of the Investment Manager or any of its affiliates is comprised of: (1) an annual retainer of $245,000, (2) an additional annual fee of $35,000 to the lead Independent Director, and (3) an additional annual fee of $25,000 to the Audit Committee Chair. The Independent Directors (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund) also may be paid additional fees for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings or incurred in connection with work performed on behalf of the Board. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees and expenses are allocated among the active portfolios in the Lazard Fund Complex at a rate of $5,000 per active portfolio with the remainder allocated among the active portfolios on the basis of relative net assets. The Statements of Operations shows the Independent Directors’ compensation and expenses paid by each Portfolio.
5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments and short sales) for the year ended December 31, 2021 were as follows:
| Portfolio | Purchases | Sales | ||||||
| Enhanced Opportunities | $ | 244,162,817 | $ | 108,004,611 | ||||
| Global Dynamic Multi-Asset | 21,755,347 | 63,715,341 | ||||||
| Opportunistic Strategies | 50,833,106 | 54,965,772 | ||||||
| Real Assets | 11,712,997 | 7,155,381 | ||||||
| US Treasury Securities | |||||||||
| Portfolio | Purchases | Sales | |||||||
| Global Dynamic Multi-Asset | $ | 324,096 | $ | 508,421 | |||||
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At December 31, 2021, the Investment Manager owned 32.86% of the outstanding shares of the Global Dynamic Multi-Asset Portfolio.
For the year ended December 31, 2021, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.
6. Line of Credit
The Fund has a $100 million committed line of credit pursuant to an Amended and Restated Loan Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at 1.00% plus the “Applicable Rate,” which is the higher of (a) the Federal Funds Rate plus 10 basis points and (b) the Overnight Bank Funding Rate (OBFR) plus 10 basis points, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the year ended December 31, 2021, the following Portfolios had borrowings under the Agreement as follows:
| Portfolio | Average Daily Loan Balance* | Maximum Daily Loan Outstanding | Weighted Average Interest Rate | Number of Days Borrowings were Outstanding | ||||||||||||
| Enhanced Opportunities | $ | 622,143 | $ | 920,000 | 1.20 | % | 7 | |||||||||
| Global Dynamic Multi-Asset | 999,803 | 14,621,225 | 1.20 | 18 | ||||||||||||
| Real Assets | 1,924,333 | 2,145,200 | 1.18 | 6 | ||||||||||||
| * | For days borrowings were outstanding. |
Management believes that the fair value of the liabilities under the Agreement is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with the
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Applicable rate. A Portfolio’s outstanding balance under the Agreement, if any, would be categorized as Level 2.
7. Investment Risks
Not all risks described below apply to all Portfolios, or may not apply to the same degree for one or more Portfolios compared to one or more other Portfolios. In addition, not all risks applicable to an investment in a Portfolio are described below. Please see the current summary prospectus for the relevant Portfolio(s) or a current Portfolio prospectus for further information regarding a Portfolio’s investment strategy and related risks.
(a) Market Risk—A Portfolio may incur losses due to declines in one or more markets in which it invests. These declines may be the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s). To the extent that such developments impact specific industries, market sectors, countries or geographic regions, a Portfolio’s investments in such industries, market sectors, countries and/or geographic regions can be expected to be particularly affected, especially if such investments are a significant portion of its investment portfolio. 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 a Portfolio. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers worldwide. As a result, local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions or other events could have a significant negative impact on global economic and market conditions. The coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses taken by many governments or voluntarily imposed by private parties, including closing borders, restricting travel and imposing prolonged quarantines or similar restrictions, as well as the closure of, or operational changes to, many retail and other businesses, has had negative impacts, and in many cases severe negative impacts, on markets worldwide. It is not known how long the
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effects of such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may be expected to impact a Portfolio and its investments.
(b) Convertible Securities Risk—The market value of convertible securities may perform like that of non-convertible fixed income securities; that is, their prices move inversely with changes in interest rates (i.e., as interest rates go up, prices go down). In addition, convertible securities are subject to the risk that the issuer will not make interest or principal payments, or will not make payments on a timely basis. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security also is subject to the same types of market and issuer risks that apply to the underlying common stock.
(c) Fixed-Income and Debt Securities Risk—The market value of a debt security may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The debt securities market can be susceptible to increases in volatility and decreases in liquidity. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.
Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity and increased redemptions, and, as a result, a Portfolio may have to liquidate portfolio securities at disadvantageous prices.
A Portfolio’s investments in lower-rated, higher-yielding securities (“junk bonds”) are subject to greater credit risk than its higher rated investments. Credit risk is the risk that the issuer will not make interest or principal payments, or will not make payments on a timely basis. Non-investment grade securities tend to be more volatile, less liquid and are considered speculative. If there
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is a decline, or perceived decline, in the credit quality of a debt security (or any guarantor of payment on such security), the security’s value could fall, potentially lowering a Portfolio’s share price. The prices of non-investment grade securities, unlike investment grade debt securities, may fluctuate unpredictably and not necessarily inversely with changes in interest rates. The market for these securities may be less liquid and therefore these securities may be harder to value or sell at an acceptable price, especially during times of market volatility or decline.
Some debt securities may give the issuer the option to call, or redeem, the securities before their maturity, and, during a time of declining interest rates, a Portfolio may have to reinvest the proceeds of called or redeemed securities in an investment offering a lower yield (and the Portfolio may not fully benefit from any increase in the value of its portfolio holdings as a result of declining interest rates).
Structured notes are privately negotiated debt instruments where the principal and/or interest is determined by reference to a specified asset, market or rate, or the differential performance of two assets or markets. Structured notes can have risks of both debt securities and derivatives transactions.
Adjustable rate securities provide a Portfolio with a certain degree of protection against rises in interest rates, although adjustable rate securities will participate in any declines in interest rates. Certain adjustable rate securities, such as those with interest rates that fluctuate directly or indirectly based on multiples of a stated index, are designed to be highly sensitive to changes in interest rates and can subject the holders thereof to extreme reductions of yield and possibly loss of principal. Certain fixed-income securities may be issued at a discount from their face value (such as zero coupon securities) or purchased at a price less than their stated face amount or at a price less than their issue price plus the portion of “original issue discount” previously accrued thereon, i.e., purchased at a “market discount.” The amount of original issue discount and/or market discount on certain obligations may be significant, and accretion of market discount
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together with original issue discount will cause a Portfolio to realize income prior to the receipt of cash payments with respect to these securities.
(d) Preferred Securities Risk—There are various risks associated with investing in preferred securities. In addition, unlike common stock, participation in the growth of an issuer may be limited.
| • | Credit risk is the risk that a security held by a Portfolio will decline in price or the issuer of the security will fail to make dividend, interest or principal payments when due because the issuer experiences a decline in its financial status. |
| • | Interest rate risk is the risk that securities will decline in value because of changes in market interest rates. When market interest rates rise, the market value of such securities generally will fall. |
| • | Preferred securities may include provisions that permit the issuer, at its discretion, to defer or omit distributions for a stated period without any adverse consequences to the issuer. |
| • | Preferred securities are generally subordinated to bonds and other debt instruments in an issuer’s capital structure in terms of having priority to corporate income, claims to corporate assets and liquidation payments, and therefore will be subject to greater credit risk than more senior debt instruments. |
| • | During periods of declining interest rates, an issuer may be able to exercise an option to call, or redeem its issue at par earlier than the scheduled maturity. If this occurs during a time of lower or declining interest rates, a Portfolio may have to reinvest the proceeds in lower yielding securities (and the Portfolio may not benefit from any increase in the value of its portfolio holdings as a result of declining interest rates). |
| • | Certain preferred securities may be substantially less liquid than many other securities, such as common stocks or US government securities. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by a Portfolio or at |
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| prices approximating the value at which the Portfolio is carrying the securities on its books. |
(e) Non-US Securities Risk—A Portfolio’s 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.
(f) 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.
(g) 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. A Portfolio’s investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies.
(h) Short Position Risk—Short positions may involve substantial risks. If a short position appreciates in value during the period of a Portfolio’s investment, there will be a loss to the Portfolio that could be substantial. Short positions involve more risk than long positions because the maximum sustainable loss on a security purchased is limited to the amount paid for the security plus the transaction costs. However, a Portfolio’s potential loss on a short position is unlimited because, theoretically, there is no limit to the
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potential price increase of a security. In addition, a Portfolio’s short sales transactions are dependent on counterparties to its securities borrowing transactions and are subject to the risk of default by a counterparty, which could result in a loss of Portfolio assets used as collateral or the loss of monies owed to the Portfolio by a counterparty.
(i) Derivatives and Hedging Risk—Derivatives transactions, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested. Swap agreements; forward currency contracts; over-the-counter options on securities, indexes, currencies and structured notes; and other over-the-counter derivatives transactions are subject to the risks of the creditworthiness of, and default by, the counterparty and consequently may lose all or a portion of their value due solely to the creditworthiness of, or default by, the counterparty. Over-the-counter derivatives frequently may be illiquid and difficult to value. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives. These derivatives transactions, as well as the exchange-traded futures and options in which a Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of the related reference asset, index or rate. As such, a small investment could have a potentially large impact on a Portfolio’s performance. In fact, many derivatives may be subject to greater risks than those associated with investing directly in the underlying or other reference asset. Derivatives transactions incur costs, either explicitly or implicitly, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of derivatives, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to predict correctly movements in the direction of the relevant reference asset or market and, for hedging activities, correlation of the derivative instruments used with the investments seeking to be
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hedged. Use of derivatives transactions, even if entered into for hedging purposes, may cause a Portfolio to experience losses greater than if the Portfolio had not engaged in such transactions. The same risks, as applicable, apply to derivative transactions by the Subsidiary. New Securities and Exchange Commission (the “SEC”) Rule 18f-4 under the 1940 Act, with which investment companies must comply beginning in August 2022, will regulate and, in some cases limit, the use of derivatives for certain funds and may require a Portfolio to alter, perhaps materially, its use of derivatives.
(j) Natural Resources Risk—Investments related to natural resources may be affected by numerous factors, including events occurring in nature, inflationary pressures and domestic and international politics. For example, events occurring in nature (such as earthquakes or fires in prime natural resource areas) and political events (such as coups or military confrontations) can affect the overall supply of a natural resource and the value of companies involved in such natural resource. Political risks and other risks to which non-US companies are subject also may affect US companies if they have significant operations or investments in non-US countries. In addition, interest rates, prices of raw materials and other commodities, international economic developments, energy conservation, tax and other government regulations (both US and non-US) may affect the supply of and demand for natural resources, which can affect the profitability and value of securities issued by companies in the natural resources category. Securities of companies within specific natural resources sub-categories can perform differently than the overall market. This may be due to changes in such things as the regulatory or competitive environment or to changes in investor perceptions.
(k) Real Estate Investments Risk—A Portfolio’s investments in Real Estate Investments (as defined in the prospectus) could lose money due to the performance of real estate-related securities even if securities markets generally are experiencing positive results. The performance of Real Estate Investments may be determined to a great extent by the current status of the real estate industry in general, or by other factors that may affect the real estate industry,
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even if other industries would not be so affected. Consequently, Real Estate Investments could lead to investment results that may be significantly different from investments in other real assets categories or investments in the broader securities markets. The risks related to investments in Real Estate Investments include, but are not limited to: adverse changes in general economic and local market conditions; adverse developments in employment; changes in supply or demand for similar or competing properties; unfavorable changes in applicable taxes, governmental regulations and interest rates; operating or development expenses; and lack of available financing.
Due to certain special considerations that apply to REITs, investments in REITs may carry additional risks not necessarily present in investments in other securities. REIT securities (including those trading on national exchanges) typically have trading volumes that are less than those of securities of other types of companies which may affect a Portfolio’s ability to trade or liquidate those securities. An investment in a REIT may be adversely affected if the REIT fails to comply with applicable laws and regulations, including failing to qualify as a REIT under the Code. Failure to qualify with any of these requirements could jeopardize a company’s status as a REIT. A Portfolio generally will have no control over the operations and policies of a REIT, including qualification as a REIT.
(l) Infrastructure Companies Risk—Securities and instruments of infrastructure companies, which consist of utilities, pipelines, toll roads, airports, railroads, ports, telecommunications and other infrastructure companies, are more susceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other
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factors. Infrastructure companies also may be affected by or subject to, among other factors, regulation by various government authorities, including rate regulation and service interruption due to environmental, operational or other mishaps.
(m) Commodities-Related Investments Risk—Exposure to the commodities markets may subject a Portfolio to greater volatility than other types of investments. The values of commodities and commodity-linked derivative instruments are affected by events that may have less impact on the values of equity and fixed income securities. Investments linked to the prices of commodities are considered speculative. Because the value of a commodity-linked derivative instrument, such as a futures contract on a physical commodity, typically is based upon the price movements of the underlying reference asset, index or rate, the value of these instruments will rise or fall in response to changes in the underlying reference asset, index or rate. Prices of commodities and commodity-linked investments may fluctuate significantly over short periods for a variety of factors, including: changes in supply and demand relationships; weather; agricultural or livestock markets; agricultural or livestock disease or pestilence; trade relationships; fiscal, monetary and exchange control programs; and embargoes, tariffs, terrorism and international economic, political, military and regulatory developments.
(n) Subsidiary and Tax Status Risk—The Real Assets Portfolio invests in the Subsidiary, which is not registered as an investment company under the 1940 Act. A regulatory change in the US or the Cayman Islands, under which the Portfolio and the Subsidiary, respectively, are organized, that impacts the Subsidiary or how the Portfolio invests in the Subsidiary, such as a change in tax law, could adversely affect the Portfolio. By investing in the Subsidiary, the Portfolio is exposed to the risks associated with the Subsidiary’s investments, which generally include the risks of investing in commodity-related derivative instruments.
Income and gains from commodities or certain commodity-linked derivative instruments do not constitute “qualifying income” to the Real Assets Portfolio for purposes of qualification as a “regulated investment company” for federal income tax
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purposes. Without such qualification, the Portfolio could be subject to tax. The tax treatment of the Portfolio’s investments in the Subsidiary and commodity-linked derivative instruments could affect whether income derived from such investment is “qualifying income” under the Code, or otherwise affect the character, timing and/or amount of the Portfolio’s taxable income or any gains and distributions made by the Portfolio.
(o) Closed-End Funds and ETFs Risk—Shares of closed-end funds and ETFs in which a Portfolio may invest may trade at prices that vary from their net asset values, sometimes significantly. The shares of closed-end funds and ETFs may trade at prices at, below or above their net asset value. Shares of closed-end funds, in particular, frequently trade at persistent discounts to their net asset value. In addition, the performance of an ETF pursuing a passive index-based strategy may diverge from the performance of the index. A Portfolio’s investments in closed-end funds and ETFs are subject to the risks of the closed-end funds’ and ETFs’ investments, as well as to the general risks of investing in closed-end funds and ETFs, respectively. A Portfolio investing in closed-end funds or ETFs will bear not only the Portfolio’s management fees and operating expenses, but also the Portfolio’s proportional share of the management fees and operating expenses of the closed-end funds and/or ETFs in which the Portfolio invests. Although Section 12 of the 1940 Act limits the amount of a Portfolio’s assets that may be invested in one or more closed-end funds and/or ETFs (subject to certain exceptions), Rule 12d1-4 under the 1940 Act allows a Portfolio to acquire the securities of another investment company, including ETFs, in excess of the limitations imposed by Section 12, subject to certain limitations and conditions.
(p) Government Securities Risk—Not all obligations of the US government, its agencies and instrumentalities are backed by the full faith and credit of the US Treasury. Some obligations are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer. Any guarantee by the US government or its agencies or
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instrumentalities of a security held by a Portfolio does not apply to the market value of such security or to shares of the Portfolio itself. A security backed by the US Treasury or the full faith and credit of the United States is guaranteed only as to the timely payment of interest and principal when held to maturity.
(q) Cybersecurity Risk—The Portfolios and their service providers are susceptible to operational and information security and related risks of cybersecurity incidents. Cybersecurity attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through “hacking” or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data or causing operational disruption. Cybersecurity incidents affecting the Investment Manager, transfer agent or custodian or other service providers such as financial intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, including by impediments to a Portfolio’s investment trading; the inability of Portfolio shareholders to purchase and redeem Portfolio shares; interference with a Portfolio’s ability to calculate its NAV; violations of applicable privacy, data security or other laws; regulatory fines and penalties; reputational damage; reimbursement or other compensation or remediation costs; legal fees; or additional compliance costs. Similar adverse consequences could result from cybersecurity incidents affecting issuers of securities in which a Portfolio invests; counterparties with which a Portfolio engages in transactions; governmental and other regulatory authorities, exchange and other financial market operators; and banks, brokers, dealers, insurance companies and other financial institutions and other parties. There are inherent limitations in any cybersecurity risk management systems or business continuity plans, including the possibility that certain risks have not been identified.
(r) Non-Diversification Risk—For a Portfolio that is classified as “non-diversified” under the 1940 Act, the Portfolio’s net asset value may be more vulnerable to changes in the market value of a single issuer or group of issuers and may be relatively more
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susceptible to adverse effects from any single corporate, industry, economic, market, political or regulatory occurrence than if the Portfolio’s investments consisted of securities issued by a larger number of issuers.
8. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnification provisions. A Portfolio’s maximum exposure under these arrangements is unknown. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
9. Fair Value Measurements
Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The fair value measurement level within the fair value hierarchy for the assets and liabilities of a Portfolio is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below:
| • | Level 1 – unadjusted quoted prices in active markets for identical assets and liabilities |
| • | Level 2 – other significant observable inputs (including unadjusted quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk, etc.) |
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| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of assets and liabilities) |
Changes in valuation methodology or inputs may result in transfers into or out of the current assigned level within the hierarchy.
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.
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The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2021:
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||
| Enhanced Opportunities Portfolio | ||||||||||||||||
| Assets: | ||||||||||||||||
| Common Stocks* | ||||||||||||||||
| China | $ | — | $ | 92,982 | $ | — | $ | 92,982 | ||||||||
| Singapore | 69,702 | — | — | 69,702 | ||||||||||||
| United States | 32,192 | 2,857 | — | 35,049 | ||||||||||||
| Convertible Corporate Bonds* | — | 166,310,888 | — | 166,310,888 | ||||||||||||
| Short-Term Investments | 38,250,299 | — | — | 38,250,299 | ||||||||||||
| Purchased Options | 34,096 | — | — | 34,096 | ||||||||||||
| Other Financial Instruments† | ||||||||||||||||
| Total Return Swap Agreements | — | 383,000 | — | 383,000 | ||||||||||||
| Total | $ | 38,386,289 | $ | 166,789,727 | $ | — | $ | 205,176,016 | ||||||||
| Liabilities: | ||||||||||||||||
| Securities Sold Short Common Stocks* | ||||||||||||||||
| Australia | $ | — | $ | (72,472 | ) | $ | — | $ | (72,472 | ) | ||||||
| Austria | — | (151,557 | ) | — | (151,557 | ) | ||||||||||
| Brazil | (49,907 | ) | — | — | (49,907 | ) | ||||||||||
| Canada | (1,121,417 | ) | — | — | (1,121,417 | ) | ||||||||||
| China | (1,139,777 | ) | — | — | (1,139,777 | ) | ||||||||||
| Israel | (88,673 | ) | — | — | (88,673 | ) | ||||||||||
| Italy | (131,102 | ) | — | — | (131,102 | ) | ||||||||||
| Netherlands | — | (50,534 | ) | — | (50,534 | ) | ||||||||||
| Saudi Arabia | — | (479,971 | ) | — | (479,971 | ) | ||||||||||
| Taiwan | (175,612 | ) | — | — | (175,612 | ) | ||||||||||
| United Kingdom | — | (89,975 | ) | — | (89,975 | ) | ||||||||||
| United States | (46,244,035 | ) | — | — | (46,244,035 | ) | ||||||||||
| US Treasury Securities | — | (12,929,678 | ) | — | (12,929,678 | ) | ||||||||||
| Written Options | (31,572 | ) | — | — | (31,572 | ) | ||||||||||
| Other Financial Instruments† | ||||||||||||||||
| Forward Currency Contracts | $ | — | $ | (69,777 | ) | $ | — | $ | (69,777 | ) | ||||||
| Total Return Swap Agreements | — | (375,303 | ) | — | (375,303 | ) | ||||||||||
| Total | $ | (48,982,095 | ) | $ | (14,219,267 | ) | $ | — | $ | (63,201,362 | ) | |||||
Annual Report 131
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||
| Global Dynamic Multi-Asset Portfolio | ||||||||||||||||
| Assets: | ||||||||||||||||
| Common Stocks* | ||||||||||||||||
| Australia | $ | — | $ | 197,247 | $ | — | $ | 197,247 | ||||||||
| Belgium | — | 17,853 | — | 17,853 | ||||||||||||
| Canada | 391,950 | — | — | 391,950 | ||||||||||||
| China | 57,581 | 25,336 | — | 82,917 | ||||||||||||
| Denmark | 46,247 | 77,520 | — | 123,767 | ||||||||||||
| France | 144,598 | 185,965 | — | 330,563 | ||||||||||||
| Germany | 69,197 | 124,055 | — | 193,252 | ||||||||||||
| Hong Kong | 30,848 | 12,267 | — | 43,115 | ||||||||||||
| Israel | 23,987 | 33,620 | — | 57,607 | ||||||||||||
| Italy | — | 11,602 | — | 11,602 | ||||||||||||
| Japan | 71,220 | 661,978 | — | 733,198 | ||||||||||||
| Malta | — | 7,638 | — | 7,638 | ||||||||||||
| Netherlands | 85,770 | 120,114 | — | 205,884 | ||||||||||||
| New Zealand | — | 5,962 | — | 5,962 | ||||||||||||
| Norway | — | 10,699 | — | 10,699 | ||||||||||||
| South Africa | — | 25,624 | — | 25,624 | ||||||||||||
| Spain | 28,622 | 1,109 | — | 29,731 | ||||||||||||
| Sweden | 163,985 | 21,847 | — | 185,832 | ||||||||||||
| Switzerland | 97,548 | 173,134 | — | 270,682 | ||||||||||||
| United Kingdom | 314,452 | 162,638 | — | 477,090 | ||||||||||||
| United States | 7,636,761 | 17,951 | — | 7,654,712 | ||||||||||||
| Preferred Stocks* | ||||||||||||||||
| Germany | — | 16,773 | — | 16,773 | ||||||||||||
| Corporate Bonds* | — | 2,268,541 | — | 2,268,541 | ||||||||||||
| Exchange-Traded Funds | 909,756 | — | — | 909,756 | ||||||||||||
| Foreign Government Obligations* | — | 2,401,604 | — | 2,401,604 | ||||||||||||
| Quasi Government Bonds* | — | 91,438 | — | 91,438 | ||||||||||||
| Supranational Bonds | — | 538,438 | — | 538,438 | ||||||||||||
| US Municipal Bonds | — | 219,183 | — | 219,183 | ||||||||||||
| US Treasury Securities | — | 63,020 | — | 63,020 | ||||||||||||
| Short-Term Investments | 243,004 | — | — | 243,004 | ||||||||||||
| Other Financial Instruments† | ||||||||||||||||
| Forward Currency Contracts | — | 75,241 | — | 75,241 | ||||||||||||
| Total | $ | 10,315,526 | $ | 7,568,397 | $ | — | $ | 17,883,923 | ||||||||
| Liabilities: | ||||||||||||||||
| Other Financial Instruments† | ||||||||||||||||
| Forward Currency Contracts | $ | — | $ | (69,474 | ) | $ | — | $ | (69,474 | ) | ||||||
132 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2021 | ||||||||||||
| Opportunistic Strategies Portfolio | ||||||||||||||||
| Assets: | ||||||||||||||||
| Exchange-Traded Funds | $ | 78,825,073 | $ | — | $ | — | $ | 78,825,073 | ||||||||
| Short-Term Investments | 1,710,952 | — | — | 1,710,952 | ||||||||||||
| Total | $ | 80,536,025 | $ | — | $ | — | $ | 80,536,025 | ||||||||
| Liabilities: | ||||||||||||||||
| Securities Sold Short Exchange-Traded Fund | $ | (1,635,277 | ) | $ | — | $ | — | $ | (1,635,277 | ) | ||||||
| Real Assets Portfolio | ||||||||||||||||
| Assets: | ||||||||||||||||
| Common Stocks* | ||||||||||||||||
| Australia | $ | — | $ | 1,277,553 | $ | — | $ | 1,277,553 | ||||||||
| Belgium | — | 159,364 | — | 159,364 | ||||||||||||
| Canada | 444,875 | — | — | 444,875 | ||||||||||||
| China | — | 404,830 | — | 404,830 | ||||||||||||
| France | — | 1,223,022 | — | 1,223,022 | ||||||||||||
| Germany | — | 289,913 | — | 289,913 | ||||||||||||
| Hong Kong | — | 841,100 | — | 841,100 | ||||||||||||
| Israel | — | 171,494 | — | 171,494 | ||||||||||||
| Italy | — | 2,499,553 | — | 2,499,553 | ||||||||||||
| Japan | — | 909,256 | — | 909,256 | ||||||||||||
| Luxembourg | — | 181,313 | — | 181,313 | ||||||||||||
| Mexico | 94,102 | — | — | 94,102 | ||||||||||||
| Netherlands | — | 45,415 | — | 45,415 | ||||||||||||
| Singapore | — | 328,487 | — | 328,487 | ||||||||||||
| South Africa | — | 162,358 | — | 162,358 | ||||||||||||
| South Korea | — | 29,491 | — | 29,491 | ||||||||||||
| Spain | — | 794,626 | — | 794,626 | ||||||||||||
| Sweden | — | 518,418 | — | 518,418 | ||||||||||||
| Switzerland | — | 217,843 | — | 217,843 | ||||||||||||
| United Arab Emirates | — | 152,132 | — | 152,132 | ||||||||||||
| United Kingdom | — | 2,172,471 | — | 2,172,471 | ||||||||||||
| United States | 10,275,773 | — | — | 10,275,773 | ||||||||||||
| Exchange-Traded Funds | 1,376,337 | — | — | 1,376,337 | ||||||||||||
| Short-Term Investments | 10,062,374 | — | — | 10,062,374 | ||||||||||||
| Other Financial Instruments† | ||||||||||||||||
| Futures Contracts | 30,984 | — | — | 30,984 | ||||||||||||
| Total | $ | 22,284,445 | $ | 12,378,639 | $ | — | $ | 34,663,084 | ||||||||
| Liabilities: | ||||||||||||||||
| Other Financial Instruments† | ||||||||||||||||
| Forward Currency Contracts | $ | — | $ | (100,499 | ) | $ | — | $ | (100,499 | ) | ||||||
| Futures Contracts | (3,959 | ) | — | — | (3,959 | ) | ||||||||||
| Total Return Swap Agreements | — | (192,576 | ) | — | (192,576 | ) | ||||||||||
| Total | $ | (3,959 | ) | $ | (293,075 | ) | $ | — | $ | (297,034 | ) | |||||
| * | Please refer to Portfolios of Investments and Notes to Portfolios of Investments for portfolio holdings by country and industry. |
| † | Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation). |
Annual Report 133
Certain equity securities to which footnote (‡) in the Notes to Portfolios of Investments applies are included in Level 2 and were valued based on reference to similar securities that were trading on active markets.
10. Derivative Instruments
Certain Portfolios may use derivative instruments, including forward currency contracts, options contracts, futures contracts or swap agreements.
Forward currency contracts may be used for hedging purposes or to seek to increase returns.
A Portfolio may write or purchase a call or put option to seek to realize, through the receipt of premiums or changes in market value, a greater return than would be realized on the underlying securities alone, or to seek to protect the Portfolio from losses.
A Portfolio may enter into futures transactions to hedge against changes in interest rates, securities prices, and/or currency exchange rates, to increase total return, or to otherwise gain access or attain exposure to certain markets or other underliers.
A Portfolio enters into swap agreements in an attempt to obtain a particular exposure when it is considered desirable to do so, possibly at a lower cost to such Portfolio than if it had invested directly in the asset that yielded the desired exposure.
134 Annual Report
During the year ended December 31, 2021, the approximate average monthly notional exposure for derivative instruments was as follows:
| Derivative Instruments | Enhanced Opportunities Portfolio | Global Dynamic Multi-Asset Portfolio | Real Assets Portfolio | |||||||||
| Forward currency contracts: | ||||||||||||
| Average amounts purchased | $ | 200,000 | * | $ | 8,900,000 | $ | 600,000 | # | ||||
| Average amounts sold | $ | 2,400,000 | 8,100,000 | 7,500,000 | ||||||||
| Futures contracts: | ||||||||||||
| Average notional value of contracts – long | — | — | 1,200,000 | |||||||||
| Total return swap agreements: | ||||||||||||
| Average notional value | 8,500,000 | † | — | 8,000,000 | ||||||||
| * | Represents average monthly notional exposure for six months the derivative instrument was open during the period. |
| # | Represents average monthly notional exposure for ten months the derivative instrument was open during the period. |
| † | Represents average monthly notional exposure for four months the derivative instrument was open during the period. |
The Enhanced Opportunities Portfolio also purchased options having an average monthly notional exposure of less than $50,000. The Enhanced Opportunities Portfolio also wrote options having an average monthly notional exposure of less than $50,000.
Enhanced Opportunities Portfolio
The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2021:
| Assets – Derivative Financial Instruments | Equity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Swap agreements | ||||||||||||
| Unrealized appreciation on swap agreements | $ | 383,000 | $ | — | $ | 383,000 | ||||||
| Purchased options | ||||||||||||
| Investment in securities, at fair value | 34,096 | — | 34,096 | |||||||||
| Total | $ | 417,096 | $ | — | $ | 417,096 | ||||||
Annual Report 135
| Liabilities – Derivative Financial Instruments | Equity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | ||||||||||||
| Unrealized depreciation on forward currency contracts | $ | — | $ | 69,777 | $ | 69,777 | ||||||
| Swap agreements | ||||||||||||
| Unrealized depreciation on swap agreements | 375,303 | — | 375,303 | |||||||||
| Written options | ||||||||||||
| Written options, at fair value | 31,572 | — | 31,572 | |||||||||
| Total | $ | 406,875 | $ | 69,777 | $ | 476,652 | ||||||
Global Dynamic Multi-Asset Portfolio
The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2021:
| Assets – Derivative Financial Instruments | Total | |||||
| Forward currency contracts | Unrealized appreciation on forward currency contracts | $ | 75,241 | |||
| Liabilities – Derivative Financial Instruments | Total | |||||
| Forward currency contracts | Unrealized depreciation on forward currency contracts | $ | 69,474 | |||
Real Assets Portfolio
The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2021:
| Assets – Derivative Financial Instruments | Commodity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Futures contracts | ||||||||||||
| Variation margin on open futures contracts (a) | $ | 24,848 | $ | — | $ | 24,848 | ||||||
136 Annual Report
| Liabilities – Derivative Financial Instruments | Commodity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | ||||||||||||
| Unrealized depreciation on forward currency contracts | $ | — | $ | 100,499 | $ | 100,499 | ||||||
| Swap agreements | ||||||||||||
| Unrealized depreciation on swap agreements | 192,576 | — | 192,576 | |||||||||
| Total | $ | 192,576 | $ | 100,499 | $ | 293,075 | ||||||
| (a) | Net cumulative unrealized appreciation (depreciation) on futures contracts if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
Enhanced Opportunities Portfolio
The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2021 was:
| Net Realized Gain (Loss) from: | Equity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | $ | — | $ | 214,226 | $ | 214,226 | ||||||
| Swap agreements | 206,886 | — | 206,886 | |||||||||
| Written options | (8,361 | ) | — | (8,361 | ) | |||||||
| Purchased options* | 793 | — | 793 | |||||||||
| Total | $ | 199,318 | $ | 214,226 | $ | 413,544 | ||||||
| * | Purchased options are included under realized gain/loss on investments on Statement of Operations. |
| Net Change in Unrealized Appreciation (Depreciation) on: | Equity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | $ | — | $ | (72,104 | ) | $ | (72,104 | ) | ||||
| Purchased options* | (40,858 | ) | — | (40,858 | ) | |||||||
| Swap agreements | 7,697 | — | 7,697 | |||||||||
| Written options | (2,939 | ) | — | (2,939 | ) | |||||||
| Total | $ | (36,100 | ) | $ | (72,104 | ) | $ | (108,204 | ) | |||
| * | Purchased options are included under unrealized gain/loss on investments on Statement of Operations. |
Annual Report 137
Global Dynamic Multi-Asset Portfolio
The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2021 was:
| Net Realized Gain (Loss) from: | Total | |||
| Forward currency contracts | $ | (266,954 | ) | |
| Net Change in Unrealized Appreciation (Depreciation) on: | Total | |||
| Forward currency contracts | $ | 75,210 | ||
Real Assets Portfolio
The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2021 was:
| Net Realized Gain (Loss) from: | Commodity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | $ | — | $ | 440,482 | $ | 440,482 | ||||||
| Futures Contracts | 192,845 | — | 192,845 | |||||||||
| Swap agreements | 2,748,401 | — | 2,748,401 | |||||||||
| Total | $ | 2,941,246 | $ | 440,482 | $ | 3,381,728 | ||||||
| Net Change in Unrealized Appreciation (Depreciation) on: | Commodity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | $ | — | $ | (37,524 | ) | $ | (37,524 | ) | ||||
| Futures Contracts | 20,569 | — | 20,569 | |||||||||
| Swap agreements | (599,869 | ) | — | (599,869 | ) | |||||||
| Total | $ | (579,300 | ) | $ | (37,524 | ) | $ | (616,824 | ) | |||
As of December 31, 2021, the Enhanced Opportunities, Global Dynamic Multi-Asset, and Real Assets Portfolios held derivative instruments that are eligible for offset in their Statements of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through a single payment in the event of default on, or termination of, any one contract.
138 Annual Report
The required information for the affected Portfolios is presented in the below table, as of December 31, 2021:
Enhanced Opportunities Portfolio
| Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | ||||||||||||
| Total Return Swap Agreements | $ | 383,000 | $ | — | $383,000 | ||||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||||
| Bank of America | $ | 383,000 | $ | (375,303 | ) | $ | — | $7,697 | ||||||||||||
| Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | ||||||||||||
| Forward Currency Contracts | $ | 69,777 | $ | — | $ | 69,777 | |||||||||
| Total Return Swap Agreements | 375,303 | — | 375,303 | ||||||||||||
| Total | $ | 445,080 | $ | — | $ | 445,080 | |||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amounts of Derivative Liabilities | ||||||||||||||||
| Bank of America | $ | 375,303 | $ | (375,303 | ) | $ | — | $ | — | |||||||||||
| State Street Bank and Trust Co. | 69,777 | — | — | 69,777 | ||||||||||||||||
| Total | $ | 445,080 | $ | (375,303 | ) | $ | — | $ | 69,777 | |||||||||||
Global Dynamic Multi-Asset Portfolio
| Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | ||||||||||||
| Forward Currency Contracts | $ | 75,241 | $ | — | $ | 75,241 | |||||||||
Annual Report 139
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||||
| Citibank NA | $ | 19,840 | $ | (14,483 | ) | $ | — | $ | 5,357 | |||||||||||
| HSBC Bank USA NA | 18,250 | (18,250 | ) | — | — | |||||||||||||||
| JPMorgan Chase Bank NA | 37,132 | (6,015 | ) | — | 31,117 | |||||||||||||||
| State Street Bank and Trust Co. | 19 | (19 | ) | — | — | |||||||||||||||
| Total | $ | 75,241 | $ | (38,767 | ) | $ | — | $ | 36,474 | |||||||||||
| Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | ||||||||||||
| Forward Currency Contracts | $ | 69,474 | $ | — | $ | 69,474 | |||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amounts of Derivative Liabilities | ||||||||||||||||
| Citibank NA | $ | 14,483 | $ | (14,483 | ) | $ | — | $ | — | |||||||||||
| HSBC Bank USA NA | 48,693 | (18,250 | ) | — | 30,443 | |||||||||||||||
| JPMorgan Chase Bank NA | 6,015 | (6,015 | ) | — | — | |||||||||||||||
| State Street Bank and Trust Co. | 283 | (19 | ) | — | 264 | |||||||||||||||
| Total | $ | 69,474 | $ | (38,767 | ) | $ | — | $ | 30,707 | |||||||||||
Lazard Real Assets Portfolio
| Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | ||||||||||||
| Forward Currency Contracts | $ | 100,499 | $ | — | $ | 100,499 | |||||||||
| Total Return Swap Agreements | 192,576 | — | 192,576 | ||||||||||||
| Total | $ | 293,075 | $ | — | $ | 293,075 | |||||||||
140 Annual Report
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged (a) | Net Amounts of Derivative Liabilities | ||||||||||||||||
| Citibank NA | $ | 12,838 | $ | — | $ | — | $ | 12,838 | ||||||||||||
| Goldman Sachs International | 192,576 | — | (192,576 | ) | — | |||||||||||||||
| HSBC Bank USA NA | 36,246 | — | — | 36,246 | ||||||||||||||||
| JPMorgan Chase Bank NA | 25,696 | — | — | 25,696 | ||||||||||||||||
| State Street Bank and Trust Co. | 25,719 | — | — | 25,719 | ||||||||||||||||
| Total | $ | 293,075 | $ | — | $ | (192,576 | ) | $ | 100,499 | |||||||||||
| (a) | Collateral amounts disclosed in the table above may be adjusted due to the requirement to limit collateral amounts to avoid the effect of over-collateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein. |
11. Accounting Pronouncements
On March 12, 2020, the Financial Accounting Standards Board concluded its reference rate reform project with the issuance of Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”). ASU No. 2020-04 provides elective temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank offered reference rates as of the end of 2021. ASU No. 2020-04 is effective for certain reference rate-related contract modifications that have occurred since March 12, 2020 and that will continue to occur, through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU No. 2020-04.
12. Subsequent Events
Management has evaluated subsequent events potentially affecting the Portfolios through the issuance of the financial statements and has determined that there were no subsequent events that required adjustment or disclosure.
Annual Report 141
The Lazard Funds, Inc.
Report of Independent Registered Public Accounting Firm
To the Board of Directors of The Lazard Funds, Inc. and Shareholders of Lazard Enhanced Opportunities Portfolio, Lazard Global Dynamic Multi-Asset Portfolio, Lazard Opportunistic Strategies Portfolio and Lazard Real Assets Portfolio:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Lazard Enhanced Opportunities Portfolio, Lazard Global Dynamic Multi-Asset Portfolio and Lazard Opportunistic Strategies Portfolio, three of the portfolios constituting The Lazard Funds, Inc. (the “Fund”), including the portfolios of investments, as of December 31, 2021, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. We have also audited the accompanying consolidated statement of assets and liabilities, including the consolidated portfolio of investments, of Lazard Real Assets Portfolio (collectively, with the portfolios mentioned above, the “Portfolios”), one of the portfolios constituting the Fund, as of December 31, 2021, the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as “the financial statements and the financial highlights”). In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Portfolios listed above as of December 31, 2021, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
142 Annual Report
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolios’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of
Annual Report 143
securities owned as of December 31, 2021, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
New York, New York
February 25, 2022
We have served as the auditor of one or more of the investment companies in the Lazard Fund Complex since 2004.
144 Annual Report
The Lazard Funds, Inc.
Board of Directors and Officers Information (unaudited)
| Name (Year of Birth) Address(1) |
Position(s) with the Fund (Since) and Term(2) |
Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Independent Directors: | ||||
| Franci J. Blassberg (1953) | Director (August 2014) |
Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present) | ||
| Cornell Law School, Adjunct Professor (2013 – present) | ||||
| The Buchmann Faculty of Law, Tel Aviv University, Visiting Professor (2019) | ||||
| University of California, Berkeley School of Law, Adjunct Professor (Spring 2017) | ||||
| Kenneth S. Davidson (1945) | Director (August 1995) |
Davidson Capital Management Corporation, an investment manager, President (1978 – present) | ||
| Nancy A. Eckl (1962) | Director (April 2007) |
College Retirement Equities Fund (eight accounts), Trustee (2007 – present) | ||
| TIAA-CREF Funds (68 funds) and TIAA-CREF Life Funds (11 funds), Trustee (2007 – present) | ||||
| TIAA Separate Account VA-1, Member of the Management Committee (2007 – present) | ||||
| Trevor W. Morrison (1971) | Director (April 2014) |
New York University School of Law, Dean and Eric M. and Laurie B. Roth Professor of Law (2013 – present) | ||
| Richard Reiss, Jr. (1944) | Director (May 1991) |
Georgica Advisors LLC, an investment manager, Chairman (1997 – present) | ||
| Osprey Technology Acquisition Corp, a special purpose acquisition company, Director (2019 – present) | ||||
| Resource America, Inc., a real estate asset management company, Director (2016 – 2018) |
Annual Report 145
| Name (Year of Birth) Address(1) |
Position(s) with the Fund (Since) and Term(2) |
Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Robert M. Solmson (1947) | Director (September 2004) |
Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, Co-Managing Partner and Managing Director (2008 – present) | ||
| Interested Directors(3): | ||||
| Ashish Bhutani (1960) | Director (July 2005) |
Investment Manager, Chief Executive Officer (2004 – present) | ||
| Lazard Ltd, Vice Chairman and Director (2010 – present) | ||||
| Nathan A. Paul (1973) | Director (October 2017), Chief Executive Officer and President (February 2017) |
Investment Manager, Chief Business Officer (April 2017 – present) and Managing Director (2003 – present) | ||
| Investment Manager, General Counsel (2002 – April 2017) | ||||
| (1) | The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
| (2) | Each Director serves as a Director for each of the funds in the Lazard Fund Complex comprised of, as of January 31, 2022, 35 active investment portfolios. Each Director serves an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation. |
| (3) | Messrs. Bhutani and Paul are “interested persons” (as defined in the 1940 Act) of the Fund because of their positions with the Investment Manager (“Interested Directors”). |
The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.lazardassetmanagement.com.
146 Annual Report
| Name (Year of Birth) Address(1) |
Position(s) with the Fund (Since) and Term(2) |
Principal Occupation(s) During the Past Five Years | ||
| Officers(3): | ||||
| Mark R. Anderson (1970) | Vice President and Secretary (February 2017) |
Managing Director (since February 2017), General Counsel (since April 2017) and Chief Compliance Officer (since September 2014) of the Investment Manager | ||
| Nargis Hilal ( 1984) | Chief Compliance Officer (July 2020) |
Director and Counsel of the Investment Manager (since January 2021, previously Senior Vice President) Chief Compliance Officer of KLS Diversified Asset Management LP (March 2016 – August 2017) | ||
| Christopher Snively (1984) | Chief Financial Officer (March 2016) and Treasurer (September 2019) |
Director of the Investment Manager (since January 2021, previously Senior Vice President) | ||
| Shari L. Soloway (1981) | Assistant Secretary (November 2015) |
Head of Legal, North America and Director of the Investment Manager (since January 2020, previously Senior Vice President) | ||
| Jessica A. Falzone (1989) | Assistant Secretary (January 2019) |
Vice President, Legal and Compliance, of the Investment Manager (since March 2018) Associate at Schulte Roth & Zabel LLP (October 2014 – March 2018) | ||
| Christina Kennedy (1990) | Assistant Treasurer (May 2020) |
Vice President of the Investment Manager (since July 2019) Senior Fund Accountant, Gates Capital Management Inc. (July 2016 – July 2019) | ||
| Cesar A. Trelles (1975) | Assistant Treasurer (December 2004) |
Vice President of the Investment Manager |
| (1) | The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
| (2) | Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex. |
| (3) | In addition to Nathan A. Paul, Chief Executive Officer and President (since February 2017, previously Vice President and Secretary), whose information is included in the Interested Directors section above. |
Annual Report 147
The Lazard Funds, Inc. Tax and Other Information (unaudited)
Tax Information
Year Ended December 31, 2021
The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2021:
Of the dividends paid by the Portfolios, the corresponding percentage shown below is qualified dividend income.
| Portfolio | Percentage | |||
| Enhanced Opportunities | 0.03 | % | ||
| Global Dynamic Multi-Asset | 9.01 | |||
| Opportunistic Strategies | 47.55 | |||
| Real Assets | 11.85 | |||
Of the dividends paid by the Portfolios, the corresponding percentage represents the amount of each dividend that qualifies for the dividends received deduction available to corporate shareholders.
| Portfolio | Percentage | |||
| Enhanced Opportunities | — | % | ||
| Global Dynamic Multi-Asset | 5.02 | |||
| Opportunistic Strategies | 13.23 | |||
| Real Assets | 1.13 | |||
Pursuant to Section 871 of the Code, the Portfolios have no designated qualified short-term gains for purposes of exempting withholding of tax on such distributions to US nonresident shareholders.
The Portfolios intend to pass through to shareholders foreign source income and foreign taxes paid, or up to the maximum amount allowable, as a foreign tax credit.
| Portfolio | Foreign Source Income | Foreign Taxes Paid/Credit | ||||||
| Enhanced Opportunities | $ | — | $ | — | ||||
| Global Dynamic Multi-Asset | — | — | ||||||
| Opportunistic Strategies | 117,752 | 22,168 | ||||||
| Real Assets | 551,439 | 32,884 | ||||||
148 Annual Report
Of the dividends paid by the Portfolios, the corresponding amount represents the long-term capital gains paid to shareholders.
| Portfolio | Long-Term Capital Gains | |||
| Enhanced Opportunities | $ | 900,944 | ||
| Global Dynamic Multi-Asset | 1,640,662 | |||
| Opportunistic Strategies | 1,398,699 | |||
| Real Assets | 107,384 | |||
Proxy Voting
A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the Securities and Exchange Commission (the “SEC”) website at https://www.sec.gov.The Fund’s proxy voting record for the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SEC’s website at https://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.
Schedule of Portfolio Holdings
The Fund files the complete schedule of each Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.
Annual Report 149
NOTES
NOTES
NOTES
The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
www.lazardassetmanagement.com
Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Custodian
State Street Bank and Trust Company
One Iron Street
Boston, Massachusetts 02210-1641
Transfer Agent and Dividend Disbursing Agent
DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169-0953
Telephone: 617-483-7000
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015
Legal Counsel
Proskauer Rose LLP
Eleven Times Square
New York, New York 10036-8299
www.proskauer.com
Annual Report 153
Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com. LZDPS030 |
 |
ITEM 2. CODE OF ETHICS.
The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (the “CEO/CFO Code of Ethics”). The Registrant has posted its CEO/CFO Code of Ethics on its Internet website at https://www.lazardassetmanagement.com/codeofethics.”
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Registrant’s Board of Directors (the “Board”) has determined that Robert M. Solmson and Nancy A. Eckl, members of the Audit Committee of the Board, are audit committee financial experts as defined by the Securities and Exchange Commission (the “SEC”). Mr. Solmson and Ms. Eckl are “independent” as defined by the SEC for purposes of audit committee financial expert determinations.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $ 876,877 in 2020 and $1,044,637 in 2021 (plus expenses in each case).
(b) Audit-Related Fees. There were no fees billed in the Reporting Periods by the Auditor to the Registrant for assurance and related services that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item 4.
The aggregate fees billed in the Reporting Periods for non-audit assurance and related services provided by the Auditor to Lazard Asset Management LLC, the Registrant’s investment manager (“Lazard”) and any entity controlling, controlled by or under common control with Lazard that provides ongoing services to the Registrant (“Service Affiliates”) that were reasonably related to the performance of the annual audit of the Service Affiliate which required pre-approval by the Audit Committee were $267,330 in 2020 and $305,330 in 2021.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods by the Auditor to the Registrant for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $401,953 in 2020 and $283,701 in 2021. These Tax Services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments; and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held. Additionally, the aggregate fees billed related to European Union tax reclaim filing services rendered by the Auditor were $168,217 in 2020 and $400,704 in 2021.
The aggregate fees billed in the Reporting Periods for Tax Services provided by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $0 in 2020 and $0 in 2021.
(d) All Other Fees. There were no fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) above.
There were no fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) above, which required pre-approval by the Audit Committee.
(e) Audit Committee Pre-Approval Policies and Procedures. The Registrant’s Audit Committee has established policies and procedures (the “Policy”) for pre-approval of the Auditor’s engagements for services to the Registrant and Service Affiliates. The Policy states that the Registrant’s Audit Committee or the Chair of the Audit Committee (pursuant to delegated authority from the Audit Committee) pre-approves the Auditor’s engagements for audit and non-audit services to the Registrant and, as required, non-audit services to Service Affiliates on a case by-case basis. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor’s independence. The Audit Committee Chair must report any pre-approval decisions he or she makes at the next scheduled Audit Committee meeting. There were no services provided by the Auditor to either the Registrant or Service Affiliates that were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X during the Reporting Periods.
(f) None.
(g) Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant and Service Affiliates for the Reporting Periods were $964,547 in 2020 and $1,165,322 in 2021.
(h) Auditor Independence. The Audit Committee considered whether provision of non-audit services to Service Affiliates that were not required to be pre-approved is compatible with maintaining the Auditor’s independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board during the period covered by this report.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(2) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
The Lazard Funds, Inc.
By /s/ Nathan A. Paul
Nathan A. Paul
Chief Executive Officer
Date February 25, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /s/ Nathan A. Paul
Nathan A. Paul
Chief Executive Officer
Date February 25, 2022
By /s/ Christopher Snively
Christopher Snively
Chief Financial Officer
Date February 25, 2022