N-CSR/A 1 c105187_ncsra.htm

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: 12/31/22

 

 

Brief Explanatory Note: The Registrant is filing this amendment to its Form N-CSR for the period ended December 31, 2022, originally filed with the Securities and Exchange Commission on February 27, 2023 (Accession Number 0000930413-23-000682), for the purpose of deleting the word “(unaudited)” from the Notes to the Financial Statements on page 264.

 

 

ITEM 1. REPORTS TO STOCKHOLDERS.

 

 

Lazard Funds

 

Annual Report

 

December 31, 2022

 

Equity Funds

 

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 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

 

 

2   A Message from Lazard (unaudited)
4   Investment Overviews (unaudited)
25   Performance Overviews (unaudited)
45   Information About Your Portfolio’s Expenses (unaudited)
53   Portfolio Holdings Presented by Asset Class/Sector
56   Portfolios of Investments
56   Lazard Developing Markets Equity Portfolio
60   Lazard Emerging Markets Core Equity Portfolio
65   Lazard Emerging Markets Equity Advantage Portfolio
75   Lazard Emerging Markets Equity Portfolio
79   Lazard Emerging Markets Strategic Equity Portfolio
83   Lazard Equity Franchise Portfolio
85   Lazard Global Equity Select Portfolio
89   Lazard Global Listed Infrastructure Portfolio
92   Lazard Global Strategic Equity Portfolio
96   Lazard International Equity Advantage Portfolio
104   Lazard International Equity Portfolio
108   Lazard International Equity Select Portfolio
112   Lazard International Quality Growth Portfolio
115   Lazard International Small Cap Equity Portfolio
120   Lazard International Strategic Equity Portfolio
124   Lazard Managed Equity Volatility Portfolio
131   Lazard US Equity Concentrated Portfolio
134   Lazard US Equity Focus Portfolio
137   Lazard US Small-Mid Cap Equity Portfolio
142   Lazard US Sustainable Equity Portfolio
146   Lazard US Systematic Small Cap Equity Portfolio
163   Notes to Portfolios of Investments
174   Statements of Assets and Liabilities
180   Statements of Operations
186   Statements of Changes in Net Assets
214   Financial Highlights
264   Notes to Financial Statements
314   Report of Independent Registered Public Accounting Firm
317   Board of Directors and Officers Information (unaudited)
320   Tax and Other Information (unaudited)

 

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 2022 saw some momentous events, including a lingering pandemic in its third year, the largest land war in Europe since World War II, and the rise of the most powerful Chinese leader in generations, whose ideology-driven policies pivoted China away from market reforms. From the perspective of global financial markets, however, 2022 can be summed up in less than 10 words: surging inflation and central bank actions to contain it.

 

Long-simmering concerns about inflation stemming from the renormalization of the global economy came to a boil in 2022. A European energy crisis triggered by Russia’s invasion of Ukraine and supply chain disruptions, made worse by COVID-driven lockdowns of major manufacturing hubs in China, turbocharged already-accelerating price growth. With global inflation reaching levels not seen in decades, central banks were forced to abandon their ultra-low interest rate policies and pivot to monetary tightening policies. At the forefront of these efforts was the US Federal Reserve (the “Fed”), the world’s most influential central bank, which pursued an aggressive rate-hiking campaign starting in March 2022 that would ultimately result in seven increases to its short-term interest rate during the year. The Fed’s actions rippled across global financial markets, stoking anxiety that these actions might tip the US economy into a recession while leading to a significant appreciation of the US dollar, which caused economic turmoil in the rest of the world.

 

At least 40 central banks from around the world raised rates in 2022, including the European Central Bank (the “ECB”), which lifted its benchmark rate four times, and the Bank of England (the “BoE”), which did so eight times. The Bank of Japan (the “BoJ”) was one of the few major central banks to swim against this global tide by maintaining an ultra-loose monetary policy; yet, by doing so, the Japanese yen depreciated significantly against the US dollar, which contributed to a weakening of Japan’s economy. With inflation in Japan rising, however, the BoJ took a small step away from this easy-money policy stance by letting a benchmark interest rate rise in the closing days of the year.

 

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The global rate-hiking cycle began to yield results late in the year as key data indicators suggested that global inflation may have peaked. While prominent central banks such the Fed, the ECB, and the BoE tempered their rate increases in December, they also made clear that their fight against high inflation was not over yet, with more interest rate increases likely to occur in 2023.

 

Against this backdrop, global equity and bond markets tumbled in 2022, losing more than US$30 trillion in total value. The challenging market conditions in 2022 are a reminder of the importance of active portfolio management. Turbulent markets are likely to differentiate winners from losers. We remain confident that fundamental analysis and bottom-up security selection 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

 

The Lazard Funds, Inc. Investment Overviews (unaudited)

 

 

Market Overviews

 

Global Markets

A multi-year rally in global equity markets that was fueled by a low-interest rate environment ended in 2022, sending stock prices plummeting amid concerns about soaring inflation and the response of central banks to contain it.

 

Financial markets found themselves mired in uncertainty throughout the year. The renormalization of the global economy as pandemic-driven restrictions loosened was uneven, and supply chain bottlenecks and a European energy crisis triggered by Russia’s invasion of Ukraine combined to produce the worst inflation in decades. As a result, central banks abandoned their ultra-low interest rate policies and pivoted to monetary tightening policies. Markets were intently focused on the US Federal Reserve (the “Fed”), the world’s most influential central bank, as it pursued an aggressive rate-hiking campaign starting in March that would ultimately result in seven increases to its short-term interest rate during 2022, ending at its highest level in 15 years. Markets were volatile throughout most of 2022 as investors attempted to predict the path of the Fed’s interest rate policy, with stocks coming under increasing pressure when it became clear that the Fed, through its pronouncements and its actions, was determined to rein in soaring price growth even if it meant tipping the US economy into a recession. The steady drumbeat of rate hikes from the Fed led to a sell-off in the US government bond market in 2022, driving up the yield on the benchmark 10-year US Treasury note by 237 basis points, the largest yearly climb since at least 1953. The 10-year Treasury bond yield ended the year at 3.88%, which put significant pressure on stocks by undercutting their appeal.

 

The Fed’s actions were part of a larger wave of monetary tightening prescribed by at least 40 central banks around the world during the year. In Europe, where the protracted Russia-Ukraine conflict led to soaring energy prices that resulted in rampant inflation, the European Central Bank (ECB) raised its benchmark rate four times while the Bank of England (“BoE”) did so eight times.

 

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Encouraging data during the last three months of 2022 suggesting that worldwide inflation may finally have peaked sparked a two-month rally in global stock markets starting in October on hopes that central banks would soon tap the brakes on their rate-hiking campaigns. These hopes were dashed in December when the Fed affirmed its hawkish stance, despite downshifting to a 50-basis point rate hike after four consecutive 75-basis point hikes in earlier months. The Fed’s warning was quickly echoed by the ECB and the BoE after they implemented their own 50-basis point rate increases. The warning from these major central banks that they were committed to crushing stubbornly high inflation at a time when economies were already slowing or in recession unnerved investors and drove global stock markets downward in December. Notably, even the Bank of Japan, one of the last remaining holdouts among major central banks, moved to let a benchmark interest rate rise, a small but significant move suggesting that Japan’s central bank might be moving away from its dovish stance amid increasing domestic price pressure.

 

Against this backdrop, global equity markets, as measured by the MSCI All Country World Index, recorded its worst annual performance since 2008. The index lost about one-fifth of its value in 2022, the equivalent of US$18 trillion. The MSCI World Index, which measures developed markets, receded 18.1% while the MSCI Emerging Markets Index fell 20.1%. Notably, the S&P 500 Index—the bellwether of the US stock market—ended the year down 18.1%, also its worst yearly performance since 2008, having lost about $8.2 trillion in value.

 

In terms of the MSCI All Country World Index, energy was the best-performing sector in the 12-month period, as shares of energies companies surged on bullish sentiment about the demand outlook for oil. Communication services was the worst-performing sector, as rising interest rates led investors to sell off technology stocks with high valuations and low dividend payments.

 

Emerging Markets Equities

The area encompassing emerging Europe, the Middle East, and Africa (“EMEA”) was the worst-performing region in 2022. In March, MSCI removed Russian stocks from its emerging markets

 

Annual Report  5

 

 

 

indices after deeming them as “uninvestable” and wrote to zero the value of its Russia index after the country’s stock market was determined to not be operating under normal rules. Emerging Asia underperformed, with China’s stock market plummeting on bearish sentiment about the country’s economic outlook amid COVID-driven lockdowns, a beleaguered real estate sector, and news that Xi Jinping had secured an unprecedented third term as the country’s president. Stock markets in Korea and Taiwan both tumbled on concerns about the demand outlook for semiconductor chips, the flagship industry for both countries. The steep drops recorded by Chinese, Korean, and Taiwanese stocks, which, in the aggregate, account for about 58% of the MSCI Emerging Markets Index, had an outsize impact on the benchmark’s overall performance. Latin America was the best-performing region, with the stock markets of commodities-exporting countries such as Brazil and Chile outperforming thanks to the increase in raw materials prices.

 

Information technology was the worst-performing sector, as the Chinese government’s crackdown on the country’s technology companies led to a steep sell-off of sector stocks. Utilities was the best-performing sector, as mounting global economic uncertainty led investors to rotate to defensive stocks.

 

International Equities

International markets rallied sharply in the fourth quarter of 2022, reducing some of the significant year-to-date drawdown. This reversal was due mainly to two factors. First, signs of peaking inflation became evident and reduced investor expectations for significant future rate hikes by central banks. Second, the end of COVID lockdowns in China raised expectations for a pickup in global growth as the China economy reopened. The very strong returns in the fourth quarter were led by lower-quality stocks, as is normally the case in a strong absolute return period, and this extended the lead for low quality compared to high quality for the full year. Foreign currency strength added to already strong local market performance for international benchmarks as peaking inflation data drove dollar weakness. As a result, despite fears of significant macroeconomic headwinds to international markets,

 

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international benchmarks outperformed the US not only in local terms, but also in dollars for the fourth quarter and the full year for the first time since 2017.

 

US Equities

US equity markets sold off during the year as several factors, including supply chain bottlenecks, rising energy prices, a tight labor market, and sustained consumer demand, combined to drive US inflation to its highest level in 40 years. As a result, the Fed reversed its ultra-low interest rate policy and embarked on an aggressive rate-hiking campaign, resulting in its benchmark rate ending December at its highest level in 15 years. Stocks were volatile throughout the year as investors grappled with two competing sentiments—relief that the Fed was taking aggressive actions to rein in rising prices and concerns that these same actions could slow economic growth. Investors were encouraged towards the end of the year that domestic inflation was showing signs of moderating, with November marking the fifth consecutive month of declines.

 

Global Infrastructure

Listed infrastructure indices, as measured by the MSCI World Core Infrastructure® (USD) Index, fell in 2022. The strongest performing areas of infrastructure in 2022 were regulated water utilities and North American freight railroads. The poorest performing areas were Japanese passenger railways and satellites. In an inflationary environment, infrastructure plays a key role in portfolio performance but understanding the nuances of infrastructure assets can prove difficult. The majority of infrastructure assets listed on public markets do not have either monopoly-like positions or guaranteed inflation protection in regulatory arrangements.

 

Portfolio Performance

 

Lazard Developing Markets Equity Portfolio

For the year ended December 31, 2022, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of -22.61%, while Open Shares posted a total return of -22.81%, as compared with the -20.09% return for the MSCI Emerging Markets Index.

 

Annual Report  7

 

 

 

Stock selection in the information technology sector detracted from relative performance for the period. Shares of GoerTek faltered on news that consumer electronics giant Apple suddenly stopped its high-end AirPods orders to the China-based electronic supplier due a to quality control issue. The fall in the stock price of Korea-based chipmaker Samsung Electronics was attributed to concerns that inventory adjustments were having a significant effect on memory pricing.

 

In contrast, stock selection in the financials sector contributed to relative performance. Shares of Banorte climbed after the Mexico-based lender reported better-than-expected results. Shares received another boost from bullish sentiment about the company’s financial discipline. The rise in the stock price of China-based online travel agency Trip.com was attributed to news that the Chinese government was easing its COVD-19 restrictions and lifting lockdowns in major cities. Shares of HDFC traded higher after ethe India-based lender reported broad-based loan growth and improvement in its incremental market share in deposits.

 

Lazard Emerging Markets Core Equity Portfolio

For the year ended December 31, 2022, the Lazard Emerging Markets Core Equity Portfolio’s Institutional Shares posted a total return of -21.63%, while Open Shares posted a total return of -21.80% and R6 Shares posted a total return of -21.58%, as compared with the -20.09% return for the MSCI Emerging Markets Index.

 

Stock selection in certain geographies detracted from relative performance. Overweight exposure to Russian stocks, including those for energy company Lukoil and lender Sberbank, detracted when their valuations fell to zero following their removal from the MSCI Emerging Markets Index.

 

In contrast, stock selection in other regions contributed to relative performance. Shares of Thailand-based petroleum exploration and production company PTT Exploration gained in sympathy with the rally in crude oil futures prices. Shares of HDFC Bank traded higher after the India-based lender reported broad-based loan growth and on news that its incremental market share in deposits

 

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was expanding. The rise in the stock price of United Arab Emirate-based ports operator Abu Dhabi Ports was attributed to increased shipping volume and positive investor sentiment for the industry as it recovered from supply chain disruptions.

 

Lazard Emerging Markets Equity Advantage Portfolio

For the year ended December 31, 2022, the Lazard Emerging Markets Equity Advantage Portfolio’s Institutional Shares posted a total return of -21.01%, while Open Shares posted a total return of -21.21%, as compared with the -20.09% return for the MSCI Emerging Markets Index.

 

Lack of exposure to Brazil-based Itau Unibanco, a large benchmark name which rose over 30% in 2022, in favor of Asian banks, detracted from relative performance. Shares of Wipro suffered from concerns that the information technology outsourcing company’s earnings outlook had weakened because higher employee expenses and a bleaker economic climate would likely reduce information technology spending from its clients.

 

In contrast, the rise in the stock price of India-based lender ICICI Bank, attributed in part to the country’s solid economic growth, contributed to relative performance. Shares of the lender also benefited from positive sentiment about the company’s strong loan growth and margin expansion due to higher interest rates. Shares of HDFC Bank also climbed on positive sentiment about the India-based lender’s aggressive growth path, which saw the opening of over 700 branches in India in 2022. Shares received another boost from the company’s strong growth in interest and fee income. Bank of China rebounded in the fourth quarter of 2022, as the lender benefited from favorable government action on revitalizing the troubled real estate sector and COVID reopening to boost economic growth.

 

Lazard Emerging Markets Equity Portfolio

For the year ended December 31, 2022, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of -14.86%, while Open Shares posted a total return of -15.09% and R6 Shares posted a total return of -14.86%, as compared with the -20.09% return for the MSCI Emerging Markets Index.

 

Annual Report  9

 

 

 

Security selection in the energy and financials sectors and above-benchmark exposure in China, Brazil, Indonesia, and South Africa boosted relative performance. BB Seguridade, a Brazilian insurance company, reported positive earnings and an improving outlook with higher interest rates and a normalization of pandemic-related loss ratios. Shares of energy companies Petróleo Brasileiro S.A (Petrobras), based in Brazil and Galp, based in Portugal with global assets in Latin America and Africa, both jumped along with the rally in crude oil futures.

 

Security selection in the communication services sector and in Russia detracted from relative performance. A lower-than-benchmark exposure to India also undercut relative performance. Shares of Korea-based chipmakers Samsung Electronics and SK Hynix fell as part of a larger decline by semiconductor-related stocks on worries about a demand downcycle amid Chinese COVID-related lockdowns and rising concerns about a potential recession brought about by rising interest rates. These led to a sell-off in semiconductor-related stocks, including Samsung Electronics and SK Hynix in Korea.

 

Lazard Emerging Markets Strategic Equity Portfolio

For the year ended December 31, 2022, the Lazard Emerging Markets Strategic Equity Portfolio’s Institutional Shares posted a total return of -19.04%, while Open Shares posted a total return of -19.24%, as compared with the -20.09% return for the MSCI Emerging Markets Index.

 

Among top contributors to relative performance, the rise in the stock price China-based online travel agency Trip.com was attributed to news that the Chinese government was easing its COVID restrictions and lifting lockdowns in major cities. Shares of HDFC Bank traded higher after the India-based lender reported broad-based loan growth and on news that its incremental market share in deposits was expanding. Shares of BB Seguridade also gained after the Brazil-based insurer reported solid quarterly earnings and an improving outlook, with higher interest rates and a normalization of pandemic-related loss ratios.

 

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Among top detractors from relative performance, shares of Taiwan-based chipmakers SK Hynix and MediaTek retreated as part of larger declines in semiconductors-related stocks due to worries about a demand downcycle stemming from China’s COVID-driven lockdowns and a global recession brought about by rising interest rates.

 

Lazard Equity Franchise Portfolio

For the year ended December 31, 2022, the Lazard Equity Franchise Portfolio’s Institutional Shares posted a total return of -5.21%, while Open Shares posted a total return of -5.45%, as compared with the -18.14% return for the MSCI World® Index.

 

Among top contributors to relative performance, shares of H&R Block advanced after the US-based tax services company reported better-than-expected results for its fiscal year 2022 fourth-quarter, and guided future earnings significantly above consensus expectations. US-based television and internet ratings measurement company Nielsen saw its stock price climb on news of a takeover offer, and major shareholder Windacre’s agreement with the private equity bidders for an offer price of $28 per share. Shares of McKesson traded higher after the US-based drug distributor reported higher earnings from sales of COVID vaccines and personal protection equipment.

 

Among top detractors from relative performance, shares of Germany-based dialysis company Fresenius fell on news that the US Supreme Court found in favor of a small health fund that had reduced the amount it paid for dialysis services, in apparent contravention of the Medicare Secondary Payer Act of 1980. Shares of Intel fell after the US-based chipmaker reported disappointing earnings due to a weaker PC market, weak demand and market share loss in the data center segment, and a further delay to the launch of its Sapphire Rapids product for the data center market.

 

Lazard Global Equity Select Portfolio

For the year ended December 31, 2022, the Lazard Global Equity Select Portfolio’s Institutional Shares posted a total return of -17.28%, while Open Shares posted a total return of -17.50%, as compared with the -18.36% return for the MSCI ACWI.

 

Annual Report  11

 

 

 

Stock selection in the information technology sector contributed to relative performance. Motorola Solutions, a leader in mission-critical communication devices, systems, and services for public safety and commercial verticals, saw its stock price climb on news that it was servicing a record-high backlog and on strength in the face of semiconductor and inflationary pressures. Stock selection in the consumer discretionary sector also boosted relative performance. Shares of US-based discount retailer Dollar General performed well as sales and earnings were strong during the year, bolstered by changes in consumer spending habits favoring lower-cost items amid an inflationary environment.

 

In contrast, lack of exposure to the energy sector detracted from relative performance. Stock selection in the healthcare sector also detracted from relative performance. The fall in the stock price of US-based animal health company Zoetis was attributed to foreign exchange headwinds and supply chain constraints.

 

Lazard Global Listed Infrastructure Portfolio

For the year ended December 31, 2022, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of -1.30%, while Open Shares posted a total return of -1.55%, as compared with the -4.13% return for the MSCI World Core Infrastructure® (USD) Index and -18.14% return for the MSCI World Index.

 

Among top contributors to relative performance, shares of Italian toll road company Atlantia climbed after the Italy-based toll road operator became a €58 billion acquisition target (at a price of €23 per share) from private equity company Blackstone and the Benetton family. Shares of Consolidated Edison also rose after the US-based utility company reported solid quarterly earnings results and sold its unregulated Clean Energy assets. Shares received another boost from investors rotating to defensive stocks amid heightened economic uncertainty. Shares of Pinnacle West advanced as part of larger gains made by most US regulated utilities, as a result of the Russia-Ukraine conflict. Shares were bolstered in November after the company reported higher-than-expected results in the third quarter of 2022 due to warmer weather and raised its full year guidance.

 

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Among top detractors from relative performance, shares of Ferrovial faltered after the Spain-based infrastructure company reported that its key asset, H407 in Ontario, Canada, saw a 34% decline in the second quarter of 2022. Shares came under additional pressure in December after Ferrovial announced a number of asset transactions that hurt performance. Shares of Hera slid on concerns that the Italy-based energy company would either be unable to pass rising gas prices to customers or at least suffer substantial working capital pressures, though results have not validated this concern.

 

Lazard Global Strategic Equity Portfolio

For the year ended December 31, 2022, the Lazard Global Strategic Equity Portfolio’s Institutional Shares posted a total return of -19.01%, while Open Shares posted a total return of -19.22%, as compared with the -18.36% return for the MSCI ACWI.

 

Stock selection in the healthcare, industrials, and financials detracted from relative performance. Shares of Adobe traded lower after the US-based design software company announced the acquisition of Figma, a cloud-based collaboration tool. The move was interpreted as a signal of potential competitive disruption to Adobe’s core market, particularly given the high price tag Adobe agreed to pay. Shares came under additional pressure due to a moderation in growth rate following a strong demand environment in 2020–21. Shares in Intuit faltered after the US-based financial software provider reported slowing topline growth in 2022 after enjoying strong demand in prior years. Investors were also concerned about the company’s exposure to small businesses in a weakening macro environment. Shares of US-based semiconductor equipment maker Applied Materials fell as part of a larger decline in semiconductor-related stocks due to concerns about a demand downcycle. This was the pattern in general for the semiconductor sector, which was one of the worst performing sectors in 2022.

 

Stock selection in the communication services, information technology, and consumer discretionary sectors boosted relative performance. Shares of UnitedHealth gained on positive

 

Annual Report  13

 

 

 

sentiment about the US-based health insurer’s upside potential, with Optum Health, the company’s health services business that brings together physician services and data and analytics, continuing to deliver strong results and serving as a good illustration of management’s strategic vision. Shares of Aon gained after the UK-based professional services company reported healthy earning growth at a reasonable valuation amid a volatile and inflationary environment. Shares of Helmerich & Payne climbed after the US-based oil services provider delivered strong results through the course of the year, thanks to a high oil price environment that provided a more favorable demand environment for equipment and services. A lack of investment in the sector created a tight supply environment resulting in very favorable pricing dynamics for Helmerich & Payne as a result.

 

Lazard International Equity Advantage Portfolio

For the year ended December 31, 2022, the Lazard International Equity Advantage Portfolio’s Institutional Shares posted a total return of -13.45%, while Open Shares posted a total return of -13.75%, as compared with the -14.45% return for the MSCI EAFE Index.

 

Among top contributors to relative performance, oil company Shell benefited from the surge in oil prices following the Ukraine invasion and led the big 5 oil companies in committing to carbon neutrality by 2050. Shares of Novo Nordisk traded higher on optimism that the Danish pharmaceutical company’s new treatment drugs will re-accelerate revenue growth. Japan Post, which generates 75% of its earnings from its finance operations, benefited from the favorable period for finance companies driven by higher global interest rates.

 

In contrast, detracting from relative performance, Deutsche Post gave back most of its relative gain from the COVID period as its struggled with weak advertising revenue, slowing newspaper sales and higher employee expenses. Nemetschek, the German building and infrastructure design firm, was adversely impacted by higher interest rates and slowing construction, along with recessionary concerns.

 

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Lazard International Equity Portfolio

For the year ended December 31, 2022, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of -14.83%, while Open Shares posted a total return of -15.05%, and R6 Shares posted a total return of -14.82%, as compared with the -14.45% return for the MSCI EAFE Index.

 

Stock selection in the healthcare sector detracted from relative performance for the period. Shares of Olympus fell after the Japanese medical devices company reported second-quarter results that indicated cost inflation was running slightly higher than what management expected and operating profit guidance was revised down by 1%. Shares of Icon fell on concerns about the Ireland-based clinical research organization’s financial leverage in the aftermath of its acquisition of rival PRA Health Sciences, and its exposure to potentially weaker biotechnology funding. Shares of Roche declined on negative news relating to the Swiss pharmaceutical company’s Alzheimer’s drug (Gantenerumab) trial. Lower-than-index exposure to the financials sector also detracted, as did higher-than-index exposure to the industrials sector.

 

In contrast, stock selection in the consumer staples sector contributed to relative performance. Shares of MatsukiyoCocokara traded higher after the Japan-listed pharmacy operator reported first-quarter results indicating that operating profit beat consensus estimates. Shares received another boost after management affirmed its outlook and a share buyback was announced. Elsewhere in the sector, the rise in the stock price of Mexican bottler Arca Continental was attributed to strong fundamentals throughout the year against the backdrop of a solid Mexican economy that was helped by companies shifting production closer to the end consumer markets in North America. Management signed a long-term agreement with Coca-Cola to cement and strengthen the strategic relationship. Lower-than-index exposure to the information technology sector contributed, as did higher-than-index exposure to the energy sector.

 

Annual Report  15

 

 

 

Lazard International Equity Select Portfolio

For the year ended December 31, 2022, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of -15.55%, while Open Shares posted a total return of -15.76%, as compared with the -16.00% return for the MSCI ACWI ex-US.

 

Stock selection in, and an overweight position to, the outperforming energy sector positively contributed to relative returns. Shares of Canada-based energy company Suncor advanced along with the rise in oil prices. Shares received another boost on news that an activist investor had built a stake in the company to unlock value in Suncor’s portfolio. Elsewhere, shares of BP rose after the UK-based integrated oil and gas company announced a 10% dividend increase and a $3.5 billion share buyback. Stock selection in the financials sector was also a significant driver of relative performance during the period, anchored by contributors Mexico-based Grupo Banorte, Indonesia-based Bank Mandiri and India-based ICICI Bank.

 

In contrast, stock selection in the utilities sector hurt relative returns. Shares of China Longyuan Power, the largest wind power producer in China and Asia, saw its stock price fell as part of a broad-based decline in Hong Kong stocks due to concerns about the impact of COVID restrictions in China. Shares were weighed down further by concerns that slightly weaker wind speeds in China during the first half of 2022 would hurt quarterly results, which ultimately were not heavily affected. In the materials sector, shares of Dutch multinational chemical company Royal DSM traded down as higher interest rates and a further rise in raw materials impacted valuations. Shares of Germany-based housing company Vonovia came under pressure as yields rose over the course of the year. Higher interest costs limited the ability of the company to invest in the asset base to drive rent increases across the property portfolio and put downward pressure on real estate values in general.

 

Lazard International Quality Growth Portfolio

For the year ended December 31, 2022, the Lazard International Quality Growth Portfolio’s Institutional Shares posted a total return of -20.10%, while Open Shares posted a total return of -20.31%, as compared with the -16.00% return for the MSCI ACW ex-US Index.

 

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The International Quality Growth Portfolio focuses on high-quality stocks; therefore, relative performance was hurt in 2022 when low-quality stocks led the market. The fall in the stock price of global private equity firm Partners Group was attributed to the more challenging market environment amid higher interest rates. Shares of UK-based animal pharmaceutical and pet health company Dechra reported fiscal year 2022 results that were in line with management expectations. Despite this, the stock underperformed as the market sold off higher valued growth stocks. Shares of Netherlands-based semiconductor equipment manufacturer ASML faltered as part of larger declines in the technology sector amid fears of a cyclical slowdown. Shares came under additional pressure after the company reported a slight decline in net bookings versus the previous quarter; however, operating margin came in slightly ahead of consensus.

 

Among top contributors to relative performance, shares of HDFC rose after the India-based lender reported better-than-expected net interest income, driven by loan growth. Shares also advanced as part of larger gains made by India’s stock market. Shares of Dollarama rose after the Canada-based discount retailer reported better-than-expected sales and margin growth and increased its full-year outlook. Lastly, shares of Danish biotech company Genmab rose as investors reacted positively to quarterly sales of Darzalex, its cancer treatment which is becoming the standard of care for multiple myeloma.

 

Lazard International Small Cap Equity Portfolio

For the year ended December 31, 2022, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of -26.32%, while Open Shares posted a total return of -26.49%, as compared with the -21.39% return for the MSCI EAFE Small Cap® Index.

 

Detracting from relative performance, shares of Dermapharm, a Germany-listed Contract Development and Manufacturing Organization (CDMO) serving the pharmaceutical industry, performed poorly in 2022 as benefits from its COVID-19 vaccine operations faded. Shares of Lindab International, a Sweden-listed

 

Annual Report  17

 

 

 

manufacturer of steel products serving construction and indoor climate customers also performed poorly in 2022 with mixed results, rising input costs, and demand uncertainty.

 

Contributing to relative performance, shares of Bankinter, a Spain-listed bank, performed well in 2022 with strong results and a favorable rate environment for the industry. Shares of MatsukiyoCocokara, a Japan-listed pharmacy operator, also performed well in 2022, with strong results that demonstrated continued benefits from the merger of Matsumotokiyoshi and Cocokara Fine. Shares of Gaztransport & Technigaz, a France-listed engineering company serving the LNG (Liquified Natural Gas) transport industry, also demonstrated strong performance in 2022, with strong results and continued demand tailwinds in the energy complex.

 

Lazard International Strategic Equity Portfolio

For the year ended December 31, 2022, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of -16.88%, while Open Shares posted a total return of -17.04%, and R6 Shares posted a total return of -16.87%, as compared with the -14.45% return for the MSCI EAFE Index.

 

Stock selection in the real estate, information technology, and healthcare sectors detracted from relative performance. Shares of Ireland-domiciled professional services company Accenture tumbled early in 2022 due to the most dramatic rotation from growth to value since 1999. Shares of Germany-based housing company Vonovia came under pressure as yields rose over the course of the year. Higher interest cost limited the ability of the company to invest in the asset base to drive rent increases across the property portfolio and put downward pressure on real estate values in general.

 

Stock selection in consumer staples, communication services, and industrials boosted relative performance. Shares of Canada-based energy company Suncor advanced in accordance with the rise in oil prices. Shares received another boost on news that an activist

 

18  Annual Report

 

 

 

investor had built a stake in the company to unlock value in the portfolio. Shares of Mexico-based bottler Arca Continental climbed, based on the strength of the Mexican economy and aided by companies shifting production closer to the end consumer market in North America. Shares were bolstered by news that management signed a long-term agreement with Coca-Cola to cement and strengthen the strategic relationship. Shares of Aon gained after the UK-based professional services company reported healthy earning growth at a reasonable valuation amid a volatile and inflationary environment.

 

Lazard Managed Equity Volatility Portfolio

For the year ended December 31, 2022, the Lazard Managed Equity Volatility Portfolio’s Institutional Shares posted a total return of -6.72%, while Open Shares posted a total return of -6.96%, as compared with the -18.14% return for the MSCI World Index.

 

Stock selection in the communication services and consumer discretionary sectors contributed to relative performance for the period, while the Portfolio’s underweighting of information technology stocks and overweighting consumer staples stocks contributed most to relative performance. Regionally, stock selection was strongest in the US and Japan, and weakest in Norway and Singapore. Stocks that provided the largest contribution to excess return included Gilead Sciences, which reported significant growth during 2022, especially in the fourth quarter. Gilead markets several single-tablet regimens for HIV and its next-generation products with better long-term safety profiles are booting the company’s market share. Coterra Energy helped relative performance, as the company’s real estate in the lowest-cost oil and natural gas basins amplified returns and boosted product and geographic diversification. The firm is one of the few oil and gas producers that can consistently generate excess returns on invested capital at midcycle commodity prices. Shares of Merck advanced after the drugmaker reported solid global revenue growth throughout the year.

 

Annual Report  19

 

 

 

In contrast, the fall in the stock price of US-based animal health company Zoetis was attributed to foreign exchange headwinds and supply chain constraints. Lower-margin emerging market sales will make up an increasing portion of company sales, potentially creating a headwind to the company’s margins. Alphabet’s share price declined significantly, with disappointing quarterly updates from the Google parent. The results underscored growing pressure from IT budgets to digital advertisement spending and chips for industrial machinery. There is little revenue diversification within Alphabet, as it remains heavily dependent on Google and the state of the search advertising space. Shares of Verizon fell steadily through the year after the telecommunications company reported lower-than-expected earnings as it dealt with higher expenses prompted by inflationary pressures on labor, utility, and logistics costs.

 

Lazard US Equity Concentrated Portfolio

For the year ended December 31, 2022, the Lazard US Equity Concentrated Portfolio’s Institutional Shares posted a total return of -19.89%, while Open Shares posted a total return of -20.07% and R6 Shares posted a total return of -19.89%, as compared with the -18.11% return for the S&P 500 Index.

 

Stock selection in the technology and REIT sectors detracted from relative performance. Alphabet, the parent company of internet search giant Google, saw its stock price fall after reporting disappointing quarterly results that included guidance for lower revenues and higher expenses. Despite solid demand trends for chipmaker Skyworks, shares of the company declined due to supply chain shortages and Chinese lockdowns, which impacted the company’s business during the year. Shares of cell tower operator Crown Castle fell along with those of REIT peers amid rising interest rates and weaker tower leasing activity.

 

In contract, stock selection in the food services and social media industries contributed to relative performance. Shares of Sysco advanced after the food services supplier reported strong quarterly

 

20  Annual Report

 

 

 

results, helped by the company’s transformation initiatives, which drove market share to record levels. Sysco also exhibited strong pricing power and an ability to pass product inflation on to the consumer while still achieving gross margin expansion. Following weakness earlier in the year, shares of Meta rebounded after the social media company announced aggressive cost cutting measures after the Portfolio initiated its position in November. Shares of Fiserv traded higher after the payments processor reported broadly strong results throughout the year, rebounding from consumer-spending-related headwinds during the pandemic.

 

Lazard US Equity Focus Portfolio

For the year ended December 31, 2022, the Lazard US Equity Focus Portfolio’s Institutional Shares posted a total return of -16.94%, while Open Shares posted a total return of -17.18% and R6 Shares posted a total return of -17.00%, as compared with the -18.11% return for the S&P 500 Index.

 

Stock selection in the information technology and consumer discretionary sectors boosted relative performance. Shares of Analog Devices climbed after the chipmaker reported broadly solid quarterly results as supply chain constraints eased, and management raised guidance toward the end of the year, citing a stabilizing bookings environment. Shares of McDonald’s advanced after the fast-food giant reported multiple quarters of stronger-than-expected same-store sales growth in the US, driven by continued benefits from its growth strategy emphasizing digital, drive-thru, and delivery.

 

Stock selection in the health care sector undercut relative performance. Shares of Medtronic fell after the medical device maker reported several disappointing operational and revenue shortcomings during the year, and management lowered guidance later in the year, citing weaker than expected procedure and supply chain recoveries. Lack of exposure to the energy sector provided to be detrimental to relative performance, as the sector was the best performer in the index during the period.

 

Annual Report  21

 

 

 

Lazard US Small-Mid Cap Equity Portfolio

For the year ended December 31, 2022, the Lazard US Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of -15.23%, while Open Shares posted a total return of -15.49%, and R6 Shares posted a total return of -15.01%, as compared with the -18.37% return for the Russell 2500® Index.

 

Stock selection in the industrials sector contributed to relative performance. Shares of Altra gained on news that the power transmission and motion control products maker agreed to be acquired by Regal Rexnord in an all-cash deal that represented a 54% premium to share price. The Portfolio subsequently exited its position during the period. Stock selection and overweighting of the energy sector also contributed to relative performance. Antero Resources, a natural gas-focused exploration and production company, saw its stock price benefit from higher prices for natural gas and natural gas liquids such as propane and ethane through most of 2022 as the company had outsized exposure to these markets. Shares received another boost when Antero was also able to return cash to shareholders earlier than expected in 2022.

 

Stock selection in the communication services sector detracted from relative performance. Shares of video game developer Take-Two Interactive fell, as investors were concerned about in-game consumer spending and changes in the company’s game release schedule. Stock selection in the real estate sector also detracted from relative performance. Shares of West-Coast focused office and studio real estate investment trust Hudson Pacific fell amid a challenging environment with unexpected large tenant move-outs creating occupancy pressure.

 

Lazard US Sustainable Equity Portfolio

For the year ended December 31, 2022, the Lazard US Sustainable Equity Portfolio’s Institutional Shares posted a total return of -18.07%, while Open Shares posted a total return of -18.32%, as compared with the -18.11% return for the S&P 500 Index for the period.

 

22  Annual Report

 

 

 

Stock selection in the information technology sector boosted relative performance. Shares of Analog Devices traded higher after the chipmaker reported broadly solid quarterly results, due to easing supply chain disruptions, and management raised guidance toward the end of 2022, citing a stabilizing bookings environment. Shares of US-based discount retailer Dollar General performed well since sales and earnings were strong during the year, bolstered by changes in consumer spending habits that favored the purchase of lower priced items in an inflationary environment. The Portfolio sold its position in June.

 

Stock selection in the materials sector undercut relative performance. Shares of Ball faltered after the beverage packaging maker announced in the third quarter that it would be delaying several growth projects amid industry headwinds. Lack of exposure to the energy sector proved to be detrimental to relative performance, as the sector was the best performer in the index for the year.

 

Lazard US Systematic Small Cap Equity Portfolio

For the year ended December 31, 2022, the Lazard US Systematic Small Cap Equity Portfolio’s Institutional Shares posted a total return of -16.33%, while Open Shares posted a total return of -16.51%, as compared with the -20.44% return for the Russell 2000 Index for the period.

 

Stock selection in the healthcare and the industrials sectors were significant contributors to relative performance. Overweight exposure to the industrials sector also boosted relative performance. The rise in the stock price of biopharmaceutical company Catalyst Pharmaceuticals was attributed to an increase in new patients for its flagship offering of a Lambert-Eaton myasthenic syndrome (LEMS) drug. The company has beaten operating metrics, maintained a healthy pipeline for organic growth, and has generated cash on its balance sheet to continue its business development initiatives. Shares of SIGA Technologies traded higher on news that the commercial-stage pharmaceutical company continued to see demand for its flagship smallpox vaccine, TPOXX. Shares

 

Annual Report  23

 

 

 

received a further boost from news that the company made strides towards its international expansion, most notably with an approval from Health Canada and significant revenue growth in Canada. ADMA Biologics, a biopharmaceutical company, saw its stock price climb, thanks to the ongoing achievement of goals and increased projections from its three commercialized products in the plasma-driven immunoglobulin (IG) space.

 

Underweight exposures to the energy and financials sectors detracted from relative performance. Stock detractors came from a variety of sectors. From the healthcare sector, Cano Health, an operator of primary care centers for seniors and underserved communities in US markets, saw its stock price fall after its anticipated acquisition by CVS Health was not announced. Shares also came under pressure when Cano missed estimates on both earnings and revenue. From the information technology sector, mobile application technology company AppLovin saw its stock price fall after a merger target, Unity Software, rejected its unsolicited bid, fueling investor concerns about a weaker mobile games market and overall negative trends in the apps business.

 

24  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 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, 2022

 

   One
year
  Five
year
  Ten
year
 
Institutional  -22.61%  -3.32%  0.29%  
Open  -22.81%  -3.59%  -0.04%  
MSCI Emerging Markets Index  -20.09%  -1.40%  1.44%  

 

Annual Report  25

   

 

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, 2022

 

   One
year
  Five
year
  Since
Inception
Institutional  -21.63%  -4.95%  -0.22%  
Open  -21.80%  -5.27%  -0.56%  
R6  -21.58%  N/A  -5.04%  
MSCI Emerging Markets Index  -20.09%  -1.40%  1.54%  
         (Institutional
and Open
Shares) -1.61%
(R6 Shares)
 

 

The inception date for the Institutional and Open Shares was October 31, 2013 and for the R6 Shares was April 6, 2018.

 

26  Annual Report

   

 

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, 2022

 

   One
year
  Five
year
  Since
Inception
Institutional  -21.01%  -1.13%  2.57%  
Open  -21.21%  -1.41%  2.28%  
MSCI Emerging Markets Index  -20.09%  -1.40%  1.81%  

 

The inception date for the Portfolio was May 29, 2015.

 

Annual Report  27

   

 

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, 2022

 

   One
year
  Five
year
  Ten
year
  Since
Inception
Institutional  -14.86%  -2.81%  0.15%  5.52%  
Open  -15.09%  -3.06%  -0.11%  5.14%  
R6  -14.86%  -2.80%  N/A  0.78%  
MSCI Emerging Markets Index  -20.09%  -1.40%  1.44%  4.72%  
          (Institutional
Shares)
5.11%
(Open Shares)
2.41%
(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.

 

28  Annual Report

   

 

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, 2022

 

   One
year
  Five
year
  Ten
year
 
Institutional  -19.04%  -2.96%  0.42%  
Open  -19.24%  -3.20%  0.15%  
MSCI Emerging Markets Index  -20.09%  -1.40%  1.44%  

 

 

 

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, 2022

 

   One
year
  Five
year
  Since
Inception
Institutional  -5.21%  6.33%  6.86%  
Open  -5.45%  6.05%  6.57%  
MSCI World Index  -18.14%  6.14%  6.92%  

 

The inception date for the Portfolio was September 29, 2017.

 

Annual Report  29

   

 

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, 2022

 

   One
year
  Five
year
  Since
Inception
Institutional  -17.28%  5.96%  7.00%  
Open  -17.50%  5.67%  6.69%  
MSCI ACWI  -18.36%  5.23%  6.45%  

 

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 (USD) Index and the MSCI World Index

 

 

Average Annual Total Returns

Periods Ended December 31, 2022

 

   One
year
  Five
year
  Ten
year
 
Institutional  -1.30%  5.87%  11.10%  
Open  -1.55%  5.61%  10.82%  
MSCI World Index  -18.14%  6.14%  8.85%  
MSCI World Core Infrastructure (USD Hedged) Index  -4.13%  7.37%  9.74%  

 

30  Annual Report

   

 

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, 2022

 

   One
year
  Five
year
  Since
Inception
Institutional  -19.01%  6.05%  6.00%  
Open  -19.22%  5.77%  5.70%  
MSCI ACWI  -18.36%  5.23%  6.09%  

 

The inception date for the Portfolio was August 29, 2014.

 

Annual Report  31

   

 

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, 2022

 

   One
year
  Five
year
  Since
Inception
Institutional  -13.45%  0.43%  2.19%  
Open  -13.75%  0.15%  1.90%  
MSCI EAFE Index  -14.45%  1.54%  2.93%  

 

The inception date for the Portfolio was May 29, 2015.

 

32  Annual Report

   

 

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, 2022

 

   One
year
  Five
year
  Ten
year
  Since
Inception
Institutional  -14.83%  0.55%  3.58%  5.29%  
Open  -15.05%  0.30%  3.31%  4.15%  
R6  -14.82%  0.56%  N/A  1.94%  
MSCI EAFE Index  -14.45%  1.54%  4.67%  4.96%  
          (Institutional
Shares)
4.53%
(Open Share)
3.31%
(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.

 

Annual Report  33

   

 

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, 2022

 

   One
year
  Five
year
  Ten
year
 
Institutional  -15.55%  -0.66%  2.72%  
Open  -15.76%  -0.93%  2.39%  
MSCI ACWI ex-US  -16.00%  0.88%  3.80%  
MSCI EAFE/ACWI ex-US Linked Index  -16.00%  0.88%  3.80%  

 

34  Annual Report

   

 

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, 2022

 

    One
year
  Since
Inception
Institutional   -20.10%   9.10%  
Open   -20.31%   8.80%  
MSCI ACWI ex-US   -16.00%   5.05%  
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, 2022

 

    One
year
  Five
year
  Ten
year
 
Institutional   -26.32%   -2.42%   4.81%  
Open   -26.49%   -2.65%   4.53%  
MSCI EAFE Small Cap Index   -21.39%   -0.05%   6.21%  

 

Annual Report  35

 

 

 

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, 2022

 

    One
year
  Five
year
  Ten
year
  Since
Inception
Institutional   -16.88%   1.20%   4.54%   5.16%  
Open   -17.04%   0.96%   4.28%   4.08%  
R6   -16.87%   1.20%   N/A   3.00%  
MSCI EAFE Index   -14.45%   1.54%   4.67%   4.03%
(Institutional
Shares)
3.30%
(Open Shares)
4.11%
(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.

 

36  Annual Report

 

 

 

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, 2022

 

    One
year
  Five
year
  Since
Inception
Institutional   -6.72%   3.51%   5.38%  
Open   -6.96%   3.24%   5.07%  
MSCI World Index   -18.14%   6.14%   7.02%  
The inception date for the Portfolio was May 29, 2015.

 

Annual Report  37

 

 

 

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, 2022

 

    One
year
  Five
year
  Ten
year
  Since
Inception
Institutional   -19.89%   6.36%   10.78%   7.80%  
Open   -20.07%   6.08%   10.45%   7.49%  
R6   -19.89%   6.36%   N/A   7.70%  
S&P 500 Index   -18.11%   9.42%   12.56%   9.00%
(Institutional
and Open
Shares)
11.68%
(R6 Shares)
 
Russell 1000 Value/S&P 500 Linked Index   -18.11%   9.43%   12.56%   8.41%
(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.

 

38  Annual Report

 

 

 

Lazard US Equity Focus Portfolio

 

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Equity Focus Portfolio and the S&P 500 Index

 

 

Average Annual Total Returns

Periods Ended December 31, 2022

 

    One
year
  Five
year
  Ten
year
  Since
Inception
Institutional   -16.94%   9.62%   11.18%   7.84%  
Open   -17.18%   9.31%   10.87%   7.53%  
R6   -17.00%   9.61%   N/A   9.47%  
S&P 500 Index   -18.11%   9.42%   12.56%   8.76%
(Institutional
and
Open Shares)
10.68%
(R6 Shares)
 
The inception date for the Institutional and Open Shares was December 30, 2004 and for the R6 Shares was May 19, 2014.

 

Annual Report  39

 

 

 

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, 2022

 

    One
year
  Five
year
  Ten
year
  Since
Inception
Institutional   -15.23%   4.06%   9.13%   9.94%  
Open   -15.49%   3.74%   8.80%   7.63%  
R6   -15.01%   N/A   N/A   2.83%  
Russell 2500 Index   -18.37%   5.89%   10.03%   10.27%
(Institutional
Shares)
8.95%
(Open Shares)
5.06%
(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.

 

40  Annual Report

 

 

 

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, 2022

 

    One
year
  Since
Inception
Institutional   -18.07%   10.94%  
Open   -18.32%   10.63%  
S&P 500 Index   -18.11%   10.64%  
The inception date for the Institutional Shares and Open Shares was June 30, 2020.

 

Annual Report  41

 

 

 

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, 2022

 

    One
year
  Since
Inception
Institutional   -16.33%   -12.04%  
Open   -16.51%   -12.22%  
Russell 2000 Index   -20.44%   -19.22%  
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 SS&C Global Investor and Distribution Solutions, the Fund’s transfer agent and dividend disbursement agent (“SS&C GIDS”); 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.

 

42  Annual Report

 

 

 

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 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 47 country indices comprising 23 developed and 24 emerging 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 46 country indices comprising 22 developed and 24 emerging markets country indices.

 

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 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 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 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 24 emerging markets country indices.

 

The MSCI World Core Infrastructure (USD) 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 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 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.

 

Annual Report  43

 

 

 

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 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 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.

 

The S&P 500 Index is a market capitalization-weighted index of 500 companies in leading industries of the US economy.

 

44  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, 2022 through December 31, 2022 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

 

 

 

Portfolio  Beginning
Account Value
7/1/22
  Ending
Account
Value
12/31/22
  Expenses Paid
During Period*
7/1/22 - 12/31/22
  Annualized
Expense Ratio
During Period
7/1/22 - 12/31/22
             
Developing Markets Equity                
Institutional Shares                
Actual      $1,000.00              $952.70                 $5.66                    1.15%         
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.41   $5.85    1.15%
Open Shares                    
Actual  $1,000.00   $951.50   $6.89    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   $1,000.00   $6.05    1.20%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.16   $6.11    1.20%
Open Shares                    
Actual  $1,000.00   $998.50   $7.30    1.45%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,017.90   $7.38    1.45%
R6 Shares                    
Actual  $1,000.00   $1,000.40   $5.80    1.15%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.41   $5.85    1.15%
                     
Emerging Markets Equity Advantage                    
Institutional Shares                    
Actual  $1,000.00   $958.00   $4.49    0.91%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.62   $4.63    0.91%
Open Shares                    
Actual  $1,000.00   $957.40   $5.72    1.16%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.36   $5.90    1.16%

 

46  Annual Report

 

 

 

Portfolio  Beginning
Account Value
7/1/22
  Ending
Account
Value
12/31/22
  Expenses Paid
During Period*
7/1/22 - 12/31/22
  Annualized
Expense Ratio
During Period
7/1/22 - 12/31/22
                 
Emerging Markets Equity                
Institutional Shares                    
Actual  $1,000.00   $1,002.40            $5.25                       1.04%           
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.96   $5.30    1.04%
Open Shares                    
Actual  $1,000.00   $1,002.40   $6.51    1.29%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,018.70   $6.56    1.29%
R6 Shares                    
Actual  $1,000.00   $1,001.10   $5.20    1.03%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.01   $5.24    1.03%
                     
Emerging Markets Strategic Equity                    
Institutional Shares                    
Actual  $1,000.00   $984.90   $5.50    1.10%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.66   $5.60    1.10%
Open Shares                    
Actual  $1,000.00   $983.40   $6.75    1.35%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,018.40   $6.87    1.35%
                     
Equity Franchise                    
Institutional Shares                    
Actual  $1,000.00   $1,021.80   $4.84    0.95%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.42   $4.84    0.95%
Open Shares                    
Actual  $1,000.00   $1,019.30   $6.11    1.20%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.16   $6.11    1.20%

 

Annual Report  47

 

 

 

Portfolio  Beginning
Account Value
7/1/22
  Ending
Account
Value
12/31/22
  Expenses Paid
During Period*
7/1/22 - 12/31/22
  Annualized
Expense Ratio
During Period
7/1/22 - 12/31/22
             
Global Equity Select                
Institutional Shares                    
Actual  $1,000.00   $1,039.20              $4.52                     0.88%          
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.77   $4.48    0.88%
Open Shares                    
Actual  $1,000.00   $1,038.50   $5.91    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   $991.10   $4.82    0.96%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.37   $4.89    0.96%
Open Shares                    
Actual  $1,000.00   $989.80   $6.07    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   $1,045.60   $4.64    0.90%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.67   $4.58    0.90%
Open Shares                    
Actual  $1,000.00   $1,045.30   $5.93    1.15%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.41   $5.85    1.15%
                     
International Equity Advantage                    
Institutional Shares                    
Actual  $1,000.00   $1,058.40   $4.15    0.80%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,021.17   $4.08    0.80%
Open Shares                    
Actual  $1,000.00   $1,056.90   $5.44    1.05%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.91   $5.35    1.05%

 

48  Annual Report

 

 

 

Portfolio  Beginning
Account Value
7/1/22
  Ending
Account
Value
12/31/22
  Expenses Paid
During Period*
7/1/22 - 12/31/22
  Annualized
Expense Ratio
During Period
7/1/22 - 12/31/22
                
International Equity                
Institutional Shares                    
Actual  $1,000.00   $1,030.60            $4.15                       0.81%        
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,021.12   $4.13    0.81%
Open Shares                    
Actual  $1,000.00   $1,028.90   $5.42    1.06%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.86   $5.40    1.06%
R6 Shares                    
Actual  $1,000.00   $1,030.30   $4.09    0.80%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,021.17   $4.08    0.80%
                     
International Equity Select                    
Institutional Shares                    
Actual  $1,000.00   $1,017.90   $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   $1,016.30   $5.84    1.15%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.41   $5.85    1.15%
                     
International Quality Growth                    
Institutional Shares                    
Actual  $1,000.00   $1,038.90   $4.37    0.85%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.92   $4.33    0.85%
Open Shares                    
Actual  $1,000.00   $1,037.30   $5.65    1.10%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.66   $5.60    1.10%

 

Annual Report  49

 

 

 

Portfolio  Beginning
Account Value
7/1/22
  Ending
Account
Value
12/31/22
  Expenses Paid
During Period*
7/1/22 - 12/31/22
  Annualized
Expense Ratio
During Period
7/1/22 - 12/31/22
                 
International Small Cap Equity                
Institutional Shares                    
Actual  $1,000.00   $1,025.00            $5.82                     1.14%         
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.46   $5.80    1.14%
Open Shares                    
Actual  $1,000.00   $1,023.70   $7.09    1.39%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,018.20   $7.07    1.39%
                     
International Strategic Equity                    
Institutional Shares                    
Actual  $1,000.00   $1,027.80   $4.14    0.81%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,021.12   $4.13    0.81%
Open Shares                    
Actual  $1,000.00   $1,026.40   $5.47    1.07%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.81   $5.45    1.07%
R6 Shares                    
Actual  $1,000.00   $1,027.70   $4.14    0.81%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,021.12   $4.13    0.81%
                     
Managed Equity Volatility                    
Institutional Shares                    
Actual  $1,000.00   $1,038.40   $3.85    0.75%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,021.42   $3.82    0.75%
Open Shares                    
Actual  $1,000.00   $1,036.70   $5.13    1.00%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.16   $5.09    1.00%

 

50  Annual Report

 

 

 

Portfolio  Beginning
Account Value
7/1/22
  Ending
Account
Value
12/31/22
  Expenses Paid
During Period*
7/1/22 - 12/31/22
  Annualized
Expense Ratio
During Period
7/1/22 - 12/31/22
                
US Equity Concentrated                
Institutional Shares                    
Actual  $1,000.00   $989.40            $3.96                      0.79%         
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,021.22   $4.02    0.79%
Open Shares                    
Actual  $1,000.00   $988.80   $5.26    1.05%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.91   $5.35    1.05%
R6 Shares                    
Actual  $1,000.00   $989.40   $3.91    0.78%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,021.27   $3.97    0.78%
                     
US Equity Focus                    
Institutional Shares                    
Actual  $1,000.00   $1,014.20   $3.55    0.70%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,021.68   $3.57    0.70%
Open Shares                    
Actual  $1,000.00   $1,013.10   $4.82    0.95%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.42   $4.84    0.95%
R6 Shares                    
Actual  $1,000.00   $1,014.20   $3.55    0.70%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,021.68   $3.57    0.70%
                     
US Small-Mid Cap Equity                    
Institutional Shares                    
Actual  $1,000.00   $1,050.60   $5.43    1.05%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.91   $5.35    1.05%
Open Shares                    
Actual  $1,000.00   $1,049.40   $6.72    1.30%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,018.65   $6.61    1.30%
R6 Shares                    
Actual  $1,000.00   $1,051.40   $4.86    0.94%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.47   $4.79    0.94%

 

Annual Report  51

 

 

 

Portfolio  Beginning
Account Value
7/1/22
  Ending
Account
Value
12/31/22
  Expenses Paid
During Period*
7/1/22 - 12/31/22
  Annualized
Expense Ratio
During Period
7/1/22 - 12/31/22
                 
US Sustainable Equity                
Institutional Shares                    
Actual  $1,000.00   $1,043.40            $3.86                     0.75%         
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,021.42   $3.82    0.75%
Open Shares                    
Actual  $1,000.00   $1,042.50   $5.15    1.00%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.16   $5.09    1.00%
                     
US Systematic Small Cap Equity                    
Institutional Shares                    
Actual  $1,000.00   $1,054.60   $4.66    0.90%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,020.67   $4.58    0.90%
Open Shares                    
Actual  $1,000.00   $1,053.10   $6.00    1.16%
Hypothetical (5% Return Before Expenses)  $1,000.00   $1,019.36   $5.90    1.16%

 

* 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).

 

52  Annual Report

 

The Lazard Funds, Inc.

Portfolio Holdings Presented by Sector December 31, 2022

 

Asset Class/Sector*  Lazard
Developing
Markets
Equity
Portfolio
  Lazard
Emerging
Markets Core
Equity
Portfolio
  Lazard
Emerging
Markets
Equity
Advantage
Portfolio
  Lazard
Emerging
Markets
Equity
Portfolio
                 
Equity                
Communication Services      8.6%     9.7%     10.2%   5.4%        
Consumer Discretionary   19.9    15.6    13.9    10.2 
Consumer Staples   3.1    5.9    5.4    7.5 
Energy   3.5    7.3    4.6    9.9 
Financials   22.2    20.7    21.2    26.3 
Health Care   2.1    2.0    3.9    4.0 
Industrials   13.2    9.6    5.8    3.5 
Information Technology   22.9    20.0    19.5    20.1 
Marine Services           0.3     
Materials   3.7    7.9    7.8    7.3 
Real Estate           2.3    2.3 
Utilities       1.0    2.7    1.8 
Short-Term Investments   0.8    0.3    2.4    1.7 
Total Investments   100.0%   100.0%   100.0%   100.0%
                     
Asset Class/Sector*  Lazard
Emerging
Markets
Strategic Equity
Portfolio
  Lazard
Equity
Franchise
Portfolio
  Lazard
Global
Equity Select
Portfolio
  Lazard
Global Listed
Infrastructure
Portfolio
                 
Equity                    
Communication Services   6.9%        12.2%          6.7%       2.8
Consumer Discretionary   17.1    19.8    14.7     
Consumer Staples   7.6    1.0    13.4     
Energy   5.4             
Financials   26.6        16.1     
Health Care   3.5    25.4    12.0     
Industrials   2.9    17.3    16.2    43.1 
Information Technology   19.4    14.2    19.4     
Materials   7.6        0.9     
Real Estate   1.1             
Utilities   1.3    4.0        48.6 
Short-Term Investments   0.6    6.1    0.6    5.5 
Total Investments   100.0%   100.0%   100.0%   100.0%

 

* Represents percentage of total investments.

 

Annual Report  53

 

 

 

Asset Class/Sector*  Lazard
Global
Strategic
Equity
Portfolio
  Lazard
International
Equity
Advantage
Portfolio
  Lazard
International
Equity
Portfolio
  Lazard
International
Equity Select
Portfolio
                 
Equity                
Communication Services   8.7%      3.7%        2.7%        5.1%       
Consumer Discretionary   4.2    11.3    13.0    11.1 
Consumer Staples   8.6    10.6    11.3    6.1 
Energy   1.3    5.1    6.4    7.3 
Financials   17.6    18.3    15.4    15.7 
Health Care   23.2    13.9    11.4    9.7 
Industrials   10.7    15.5    20.7    22.0 
Information Technology   19.3    8.1    5.1    8.5 
Materials   1.9    7.1    6.7    6.3 
Real Estate       2.4    1.9    1.7 
Utilities   1.6    3.3    5.4    5.3 
Short-Term Investments   2.9    0.7        1.2 
Total Investments   100.0%   100.0%   100.0%   100.0%
                     
Asset Class/Sector*  Lazard
International
Quality Growth
Portfolio
  Lazard
International
Small Cap
Equity
Portfolio
  Lazard
International
Strategic
Equity
Portfolio
  Lazard
Managed
Equity
Volatility
Portfolio
                     
Equity                    
Communication Services   8.0%   3.0%   3.7%   8.9%
Consumer Discretionary   13.8    11.4    8.5    9.2 
Consumer Staples   11.7    6.6    11.9    19.7 
Energy       3.0    2.2    1.4 
Financials   20.3    13.1    19.8    9.3 
Health Care   11.4    5.7    11.2    19.2 
Industrials   18.2    25.7    21.0    7.9 
Information Technology   16.6    11.0    8.0    8.3 
Materials       6.3    4.1    0.6 
Real Estate       8.7    2.0    4.8 
Utilities       3.3    4.8    10.7 
Short-Term Investments       2.2    2.8     
Total Investments   100.0%   100.0%   100.0%   100.0%

 

* Represents percentage of total investments.

 

54  Annual Report

 

 

 

Asset Class/Sector*  Lazard
US Equity
Concentrated
Portfolio
  Lazard
US Equity
Focus
Portfolio
  Lazard US
Small-Mid
Cap Equity
Portfolio
  Lazard US
Sustainable
Equity
Portfolio
                 
Equity                
Communication Services   13.0%         5.5%   4.3%     1.0%    
Consumer Discretionary   14.0    14.2    10.5    4.8 
Consumer Staples   4.6    4.5    3.3    6.2 
Energy           5.2     
Financials   6.0    19.0    15.7    12.5 
Health Care   11.7    16.5    13.3    24.5 
Industrials   15.1    11.3    17.6    12.7 
Information Technology   25.7    22.0    14.7    27.0 
Materials   3.3        6.9    3.8 
Real Estate   6.2    2.3    6.1    2.4 
Utilities           2.4     
Short-Term Investments   0.4    4.7        5.1 
Total Investments   100.0%   100.0%   100.0%   100.0%

 

Asset Class/Sector*  Lazard US
Systematic
Small Cap
Equity
Portfolio
    
Equity     
Communication Services   3.8%    
Consumer Discretionary   12.7 
Consumer Staples   4.3 
Energy   2.5 
Financials   5.4 
Health Care   15.3 
Industrials   23.9 
Information Technology   20.5 
Materials   5.7 
Real Estate   4.9 
Utilities   0.3 
Short-Term Investments   0.7 
Total Investments   100.0%

 

* Represents percentage of total investments.

 

Annual Report  55

 

The Lazard Funds, Inc. Portfolios of Investments
December 31, 2022

 

         
       Fair 
Description  Shares   Value 
         
Lazard Developing Markets Equity Portfolio          
           
Common Stocks  |  97.9%          
           
Brazil  |  4.2%          
Dexco SA   476,408   $610,414 
Pagseguro Digital Ltd., Class A (*)   69,524    607,640 
Petro Rio SA (*)   153,400    1,085,892 
Rumo SA   305,444    1,075,634 
Vamos Locacao de Caminhoes Maquinas e Equipamentos SA   293,800    702,875 
         4,082,455 
           
China  |  36.6%          
Airtac International Group   27,765    840,368 
Alibaba Group Holding Ltd. ADR (*)   38,127    3,358,607 
Autohome, Inc. ADR   37,231    1,139,269 
Baidu, Inc., Class A (*)   66,700    958,701 
China Tourism Group Duty Free Corp. Ltd., Class A   93,900    2,919,794 
Chow Tai Seng Jewellery Co. Ltd., Class A   529,250    1,068,502 
JD.com, Inc., Class A   79,909    2,246,269 
Jiangsu King’s Luck Brewery JSC Ltd., Class A   123,800    906,119 
Minth Group Ltd.   656,000    1,767,905 
Ping An Insurance (Group) Co. of China Ltd., Class H   263,500    1,739,150 
Shanghai Liangxin Electrical Co. Ltd., Class A   812,392    1,712,677 
Tencent Holdings Ltd.   124,800    5,304,275 
Topsports International Holdings Ltd.   1,005,000    788,580 
Trip.com Group Ltd. ADR (*)   56,317    1,937,305 
Weibo Corp. ADR (*)   38,883    743,443 
Wuliangye Yibin Co. Ltd., Class A   82,600    2,138,727 
Xiaomi Corp., Class B (*)   493,000    686,133 
Yadea Group Holdings Ltd.   848,000    1,412,395 
Zhongsheng Group Holdings Ltd.   348,500    1,776,379 
ZTO Express Cayman, Inc. ADR   83,594    2,246,171 
         35,690,769 

 

The accompanying notes are an integral part of these financial statements.

 

56  Annual Report

 

 

 

         
       Fair 
Description  Shares   Value 
         
Lazard Developing Markets Equity Portfolio (continued)          
           
Colombia  |  0.6%          
Bancolombia SA ADR   21,122   $602,822 
           
Hong Kong  |  1.1%          
Techtronic Industries Co. Ltd.   93,502    1,041,146 
           
Hungary  |  2.1%          
Richter Gedeon Nyrt.   92,852    2,062,876 
           
India  |  12.6%          
Bajaj Finance Ltd.   17,055    1,349,851 
HDFC Bank Ltd. ADR   47,513    3,250,364 
ICICI Bank Ltd. ADR   143,870    3,149,314 
Mphasis Ltd.   23,096    550,927 
Reliance Industries Ltd.   71,137    2,182,208 
UPL Ltd.   205,069    1,775,457 
         12,258,121 
           
Indonesia  |  4.1%          
PT Bank Central Asia Tbk   3,218,400    1,764,488 
PT Bank Rakyat Indonesia (Persero) Tbk   7,073,549    2,242,394 
         4,006,882 
           
Mexico  |  2.7%          
Grupo Financiero Banorte SAB de CV, Class O   366,757    2,633,257 
           
Peru  |  0.7%          
Credicorp Ltd.   4,961    673,009 
           
Philippines  |  2.6%          
BDO Unibank, Inc.   846,842    1,598,664 
International Container Terminal Services, Inc.   270,829    974,744 
         2,573,408 
           
Poland  |  1.7%          
InPost SA (*)   197,279    1,667,346 

 

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  |  3.0%          
Capitec Bank Holdings Ltd.   5,917   $647,231 
Foschini Group Ltd.   115,883    691,140 
Standard Bank Group Ltd.   160,094    1,581,075 
         2,919,446 
           
South Korea  |  8.6%          
CJ Logistics Corp. (*)   7,943    592,008 
Samsung Electronics Co. Ltd.   124,811    5,503,927 
SK Hynix, Inc.   37,688    2,268,511 
         8,364,446 
           
Taiwan  |  14.7%          
ASE Technology Holding Co. Ltd.   417,289    1,273,713 
Bizlink Holding, Inc.   165,000    1,268,712 
Chroma ATE, Inc.   251,000    1,476,598 
Hiwin Technologies Corp.   118,714    704,334 
Lotes Co. Ltd.   63,000    1,691,786 
MediaTek, Inc.   62,000    1,259,349 
RichWave Technology Corp.   177,000    647,096 
Sercomm Corp.   324,000    805,744 
Silicon Motion Technology Corp. ADR   17,718    1,151,493 
Taiwan Semiconductor Manufacturing Co. Ltd.   276,000    4,022,603 
         14,301,428 
           
United States  |  1.3%          
JS Global Lifestyle Co. Ltd.   1,131,500    1,271,631 
           
Zambia  |  1.3%          
First Quantum Minerals Ltd.   59,163    1,236,131 
           
Total Common Stocks
(Cost $87,833,020)
        95,385,173 

 

 

The accompanying notes are an integral part of these financial statements.

 

58  Annual Report

 

 

 

         
       Fair 
Description  Shares   Value 
         
Lazard Developing Markets Equity Portfolio (concluded)          
           
Short-Term Investments  |  0.8%          
State Street Institutional Treasury Money Market Fund, Premier Class, 3.79 % (7 day yield) (Cost $731,270)   731,270   $731,270 
           
Total Investments  |  98.7%
(Cost $88,564,290)
       $96,116,443 
           
Cash and Other Assets in Excess of Liabilities  |  1.3%        1,281,125 
           
Net Assets  |  100.0%       $97,397,568 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  59

 

 

 

         
       Fair 
Description  Shares   Value 
         
Lazard Emerging Markets Core Equity Portfolio          
           
Common Stocks  |  92.5%          
           
Brazil  |  5.8%          
Banco BTG Pactual SA   227,896   $1,032,455 
Banco do Brasil SA   118,200    775,917 
Centrais Eletricas Brasileiras SA   106,100    846,414 
Lojas Renner SA   120,858    455,263 
MercadoLibre, Inc. (*)   678    573,751 
Pet Center Comercio e Participacoes SA   179,366    210,898 
Petroleo Brasileiro SA ADR   76,653    816,354 
Rumo SA   210,658    741,841 
         5,452,893 
           
Canada  |  0.9%          
Parex Resources, Inc.   56,631    842,773 
           
China  |  26.4%          
Alibaba Group Holding Ltd. (*)   23,500    259,467 
Alibaba Group Holding Ltd. ADR (*)   26,736    2,355,174 
Bilibili, Inc. ADR (*)   10,813    256,160 
Budweiser Brewing Co. APAC Ltd.   307,600    967,656 
China Mengniu Dairy Co. Ltd.   154,000    692,693 
Industrial & Commercial Bank of China Ltd., Class H   6,001,633    3,091,342 
Innovent Biologics, Inc. (*)   97,500    418,599 
JD.com, Inc. ADR   21,530    1,208,479 
JD.com, Inc., Class A   15,726    442,063 
Meituan, Class B (*)   52,400    1,158,636 
Midea Group Co. Ltd., Class A   53,700    398,885 
NetEase, Inc.   26,900    392,109 
NetEase, Inc. ADR   8,760    636,239 
PICC Property & Casualty Co. Ltd., Class H   839,770    794,866 
Ping An Insurance (Group) Co. of China Ltd., Class H   225,000    1,485,043 
Prosus NV   12,244    840,617 
Remegen Co. Ltd., Class H (*)   53,500    397,001 
Shenzhen Inovance Technology Co. Ltd., Class A   67,200    672,092 
Shenzhou International Group Holdings Ltd.   58,091    653,689 

 

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)          
           
Tencent Holdings Ltd.   110,800   $4,709,245 
Wuxi Biologics Cayman, Inc. (*)   111,000    852,154 
Wuxi Lead Intelligent Equipment Co. Ltd., Class A   116,100    672,557 
XPeng, Inc., Class A (*)   90,700    450,830 
Yum China Holdings, Inc.   21,142    1,155,410 
         24,961,006 
           
Ghana  |  0.7%          
Kosmos Energy Ltd. (*)   95,915    610,019 
           
Hong Kong  |  0.9%          
Techtronic Industries Co. Ltd.   74,000    823,991 
           
India  |  13.2%          
HDFC Bank Ltd. ADR   41,082    2,810,420 
Hindalco Industries Ltd.   166,710    948,696 
ICICI Bank Ltd. ADR   41,821    915,462 
Infosys Ltd. ADR   93,785    1,689,068 
Larsen & Toubro Ltd.   52,677    1,324,767 
Reliance Industries Ltd.   53,275    1,634,271 
Star Health & Allied Insurance Co. Ltd. (*)   117,720    805,930 
UPL Ltd.   182,446    1,579,590 
WNS Holdings Ltd. ADR (*)   10,039    803,020 
         12,511,224 
           
Indonesia  |  2.8%          
PT Bank Mandiri (Persero) Tbk   2,089,500    1,327,882 
PT Telkom Indonesia (Persero) Tbk ADR   54,992    1,311,559 
         2,639,441 
           
Malaysia  |  0.9%          
Public Bank Berhad   870,500    852,694 
           
Mexico  |  6.4%          
Arca Continental SAB de CV   181,045    1,470,175 
Cemex SAB de CV ADR (*)   256,294    1,037,991 

 

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)          
           
Grupo Aeroportuario del Centro Norte SAB de CV   11,608   $717,839 
Grupo Aeroportuario del Pacifico SAB de CV ADR   6,713    965,396 
Grupo Financiero Banorte SAB de CV, Class O   132,800    953,483 
Wal-Mart de Mexico SAB de CV   252,400    888,416 
         6,033,300 
           
Philippines  |  1.3%          
BDO Unibank, Inc.   439,509    829,702 
PLDT, Inc.   18,535    439,332 
         1,269,034 
           
Poland  |  1.2%          
KGHM Polska Miedz SA   39,976    1,162,133 
           
Qatar  |  0.8%          
Qatar National Bank QPSC   158,469    783,333 
           
Saudi Arabia  |  0.7%          
Saudi National Bank   48,533    653,343 
           
South Africa  |  2.0%          
Anglo American PLC   31,393    1,227,864 
Bidvest Group Ltd.   54,189    682,950 
         1,910,814 
           
South Korea  |  9.9%          
DB Insurance Co. Ltd.   12,103    627,708 
KB Financial Group, Inc.   14,440    550,005 
LG Chem Ltd.   2,102    1,005,535 
LG Electronics, Inc.   7,072    488,139 
Samsung Electronics Co. Ltd.   97,147    4,283,997 
Samsung SDI Co. Ltd.   1,907    898,585 
SK Hynix, Inc.   14,273    859,119 
SM Entertainment Co. Ltd.   10,847    661,994 
         9,375,082 

 

The accompanying notes are an integral part of these financial statements.

 

62  Annual Report

 

 

 

         
       Fair 
Description  Shares   Value 
         
Lazard Emerging Markets Core Equity Portfolio (continued)          
           
Taiwan  |  11.6%          
Accton Technology Corp.   67,000   $510,630 
ASE Technology Holding Co. Ltd.   282,000    860,763 
Eclat Textile Co. Ltd.   49,789    802,027 
Feng TAY Enterprise Co. Ltd.   94,000    630,994 
Nien Made Enterprise Co. Ltd.   54,000    517,141 
Realtek Semiconductor Corp.   40,000    365,393 
Taiwan Semiconductor Manufacturing Co. Ltd. ADR   97,273    7,245,866 
         10,932,814 
           
Thailand  |  2.3%          
Home Product Center Public Co. Ltd. (‡)   2,305,800    1,031,901 
PTT Exploration & Production PCL (‡)   213,600    1,088,506 
         2,120,407 
           
United Arab Emirates  |  2.5%          
Abu Dhabi Ports Co. PJSC   1,151,076    1,799,176 
ADNOC Drilling Co. PJSC   693,449    562,486 
         2,361,662 
           
United Kingdom  |  1.2%          
Unilever PLC ADR   22,643    1,140,075 
           
United States  |  1.0%          
Tenaris SA ADR   25,885    910,117 
           
Total Common Stocks
(Cost $80,137,942)
        87,346,155 
           
Short-Term Investments  |  0.2%          
State Street Institutional Treasury Money Market Fund, Premier Class, 3.79 % (7 day yield) (Cost $232,210)   232,210    232,210 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  63

 

 

 

         
       Fair 
Description  Shares   Value 
         
Lazard Emerging Markets Core Equity Portfolio (concluded)          
           
Total Investments  |  92.7%
(Cost $80,370,152)
       $87,578,365 
           
Cash and Other Assets in Excess of Liabilities  |  7.3%        6,925,671 
           
Net Assets  |  100.0%       $94,504,036 

 

The accompanying notes are an integral part of these financial statements.

 

64  Annual Report

 

 

 

 

         
Description  Shares   Fair
Value
 
         
Lazard Emerging Markets Equity Advantage Portfolio          
           
Common Stocks  |  95.8%          
           
Brazil  |  2.3%          
Banco do Brasil SA   32,900   $215,970 
Energisa SA   16,900    141,301 
Suzano SA   14,700    136,440 
Vale SA   81,709    1,387,804 
         1,881,515 
           
Chile  |  0.7%          
Sociedad Quimica y Minera de Chile SA ADR   7,646    610,457 
           
China  |  32.5%          
360 DigiTech, Inc. ADR   8,192    166,789 
37 Interactive Entertainment Network Technology Group Co. Ltd., Class A   42,800    111,189 
Agricultural Bank of China Ltd., Class H   365,000    125,334 
AIMA Technology Group Co. Ltd.   32,100    212,275 
Alibaba Group Holding Ltd. (*)   203,000    2,241,356 
Anhui Gujing Distillery Co. Ltd.   3,000    115,123 
Baidu, Inc. ADR (*)   3,389    387,634 
Bank of China Ltd., Class H   2,748,000    999,930 
Bank of Communications Co. Ltd., Class H   367,000    210,262 
Baoshan Iron & Steel Co. Ltd., Class A   172,300    138,575 
Beijing Enterprises Holdings Ltd.   71,500    229,031 
Beijing Wantai Biological Pharmacy Enterprise Co. Ltd. Class A   6,200    112,766 
BYD Co. Ltd., Class H   12,500    307,392 
BYD Electronic International Co. Ltd.   33,500    107,758 
China CITIC Bank Corp. Ltd., Class H   763,000    338,245 
China Construction Bank Corp., Class H   459,000    287,591 
China Datang Corp. Renewable Power Co. Ltd.   490,000    145,035 
China Galaxy Securities Co. Ltd., Class H   898,500    438,651 
China Life Insurance Co. Ltd., Class H   80,000    137,368 
China Longyuan Power Group Corp. Ltd., Class H   359,000    439,184 
China Meidong Auto Holdings Ltd.   76,000    155,607 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  65

 

 

 

 

         
Description  Shares   Fair
Value
 
         
Lazard Emerging Markets Equity Advantage Portfolio (continued)          
           
China Merchants Bank Co. Ltd., Class H   92,000   $509,994 
China Pacific Insurance Group Co. Ltd., Class H   128,200    283,096 
China Petroleum & Chemical Corp., Class H   1,214,000    586,719 
China Resources Beer Holdings Co. Ltd.   16,000    111,841 
China Resources Land Ltd.   46,000    208,932 
China Resources Mixc Lifestyle Services Ltd.   28,600    145,303 
China Taiping Insurance Holdings Co. Ltd.   144,600    180,100 
China Tower Corp. Ltd., Class H   2,322,000    249,921 
Chongqing Brewery Co. Ltd., Class A   6,600    120,996 
Contemporary Amperex Technology Co. Ltd., Class A   1,600    90,594 
COSCO SHIPPING Holdings Co. Ltd., Class H   173,800    177,276 
CSPC Pharmaceutical Group Ltd.   543,840    571,447 
G-bits Network Technology Xiamen Co. Ltd., Class A   2,400    107,770 
Ganfeng Lithium Group Co. Ltd.   14,800    110,574 
GD Power Development Co. Ltd., Class A (*)   396,400    243,219 
GF Securities Co. Ltd., Class H   122,800    175,420 
Greattown Holdings Ltd. Class A (*)   164,897    74,160 
Haier Smart Home Co. Ltd. Class H   103,600    353,172 
Industrial & Commercial Bank of China Ltd., Class H   536,000    276,085 
JD Health International, Inc. (*)   22,200    203,024 
JD.com, Inc., Class A   27,654    777,363 
KE Holdings, Inc. ADR (*)   14,540    202,978 
Kingnet Network Co. Ltd. (*)   135,300    127,218 
Lenovo Group Ltd.   264,000    216,855 
Li Auto, Inc. ADR (*)   5,154    105,142 
Li Ning Co. Ltd.   18,500    158,753 
Meihua Holdings Group Co. Ltd.   128,800    188,676 
Meituan, Class B (*)   43,900    970,690 
NetEase, Inc.   43,900    639,910 
New China Life Insurance Co. Ltd., Class H   48,200    117,071 
New Oriental Education & Technology Group, Inc. ADR (*)   5,515    192,032 
NIO, Inc. ADR (*)   9,577    93,376 
People’s Insurance Co. Group of China Ltd., Class H   1,397,000    463,603 
PetroChina Co. Ltd., Class H   1,744,000    798,357 
PICC Property & Casualty Co. Ltd., Class H   440,000    416,472 

 

The accompanying notes are an integral part of these financial statements.

 

66  Annual Report

 

 

 

 

         
Description  Shares   Fair
Value
 
         
Lazard Emerging Markets Equity Advantage Portfolio (continued)          
           
Pinduoduo, Inc. ADR (*)   7,544   $615,213 
Ping An Insurance (Group) Co. of China Ltd., Class H   42,500    280,508 
Power Construction Corp. of China Ltd. Class A   135,700    138,031 
Shandong WIT Dyne Health Co. Ltd., Class A   34,700    226,625 
Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A   3,700    167,941 
Shenzhen Salubris Pharmaceuticals Co. Ltd.   38,200    180,545 
Shenzhen YUTO Packaging Technology Co. Ltd.   31,000    147,488 
Simcere Pharmaceutical Group Ltd.   107,000    159,330 
Sunny Optical Technology Group Co. Ltd.   13,700    163,035 
Suzhou TA&A Ultra Clean Technology Co. Ltd.   16,300    130,811 
Tencent Holdings Ltd.   88,700    3,769,946 
Tencent Music Entertainment Group ADR (*)   18,066    149,586 
Tian Di Science & Technology Co. Ltd.   190,900    142,452 
Tongwei Co. Ltd. Class A   46,493    258,142 
Trip.com Group Ltd. ADR (*)   4,455    153,252 
Vipshop Holdings Ltd. ADR (*)   11,458    156,287 
Xuji Electric Co. Ltd., Class A   57,490    165,107 
Yadea Group Holdings Ltd.   72,000    119,920 
YongXing Special Materials Technology Co. Ltd.   7,800    103,466 
Yum China Holdings, Inc.   12,390    677,114 
Zhejiang Jiuzhou Pharmaceutical Co. Ltd.   25,100    152,828 
Zhongsheng Group Holdings Ltd.   53,500    272,701 
ZTO Express Cayman, Inc. ADR   8,516    228,825 
         26,214,387 
           
Colombia  |  0.3%          
Bancolombia SA ADR   8,654    246,985 
           
Czech Republic  |  0.5%          
CEZ AS   13,036    443,911 
           
Greece  |  0.5%          
Danaos Corp.   1,989    104,741 
Hellenic Telecommunications Organization SA   19,248    300,611 
         405,352 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  67

 

 

 

 

         
Description  Shares   Fair
Value
 
         
Lazard Emerging Markets Equity Advantage Portfolio (continued)          
           
Hong Kong  |  0.2%          
Orient Overseas International Ltd.   8,500   $153,281 
           
Hungary  |  0.3%          
MOL Hungarian Oil & Gas PLC   34,564    241,428 
           
India  |  12.5%          
Axis Bank Ltd. GDR   2,992    170,011 
Dr Reddy’s Laboratories Ltd. ADR   13,922    720,463 
GAIL India Ltd. GDR   31,520    222,277 
HDFC Bank Ltd. ADR   15,885    1,086,693 
ICICI Bank Ltd. ADR   78,351    1,715,103 
Infosys Ltd. ADR   109,258    1,967,737 
Larsen & Toubro Ltd. GDR   36,439    923,157 
Mahindra & Mahindra Ltd. GDR   55,128    829,676 
MakeMyTrip Ltd. (*)   4,085    112,623 
Reliance Industries Ltd. GDR (#)   14,752    908,274 
State Bank of India GDR   8,012    595,693 
Tata Steel Ltd. GDR   6,282    85,296 
Wipro Ltd. ADR   34,205    159,395 
WNS Holdings Ltd. ADR (*)   7,066    565,209 
         10,061,607 
           
Indonesia  |  3.1%          
PT Astra International Tbk   504,200    183,690 
PT Bank Mandiri (Persero) Tbk   1,327,000    843,311 
PT Bank Negara Indonesia (Persero) Tbk   237,500    140,206 
PT Bank Rakyat Indonesia (Persero) Tbk   1,620,500    513,717 
PT Kalbe Farma Tbk   1,142,100    153,342 
PT Sumber Alfaria Trijaya Tbk   1,292,000    219,942 
PT Telkom Indonesia (Persero) Tbk ADR   5,773    137,686 
PT Unilever Indonesia Tbk   1,040,300    313,748 
         2,505,642 

 

The accompanying notes are an integral part of these financial statements.

 

68  Annual Report

 

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Equity Advantage Portfolio (continued)          
           
Malaysia  |  1.4%          
CIMB Group Holdings Berhad   482,600   $635,693 
Petronas Chemicals Group Bhd   251,700    491,588 
         1,127,281 
           
Mexico  |  2.4%          
Arca Continental SAB de CV   52,600    427,138 
Coca-Cola Femsa SAB de CV ADR   10,313    700,047 
Grupo Aeroportuario del Pacifico SAB de CV, B Shares   7,600    108,872 
Grupo Bimbo SAB de CV, Series A   29,200    123,414 
Grupo Mexico SAB de CV, Series B   29,400    103,213 
Wal-Mart de Mexico SAB de CV   126,500    445,264 
         1,907,948 
           
Monaco  |  0.1%          
Costamare, Inc.   9,147    84,884 
           
Philippines  |  0.6%          
BDO Unibank, Inc.   103,758    195,874 
International Container Terminal Services, Inc.   76,900    276,772 
         472,646 
           
Poland  |  0.8%          
KGHM Polska Miedz SA   9,979    290,097 
Orange Polska SA   90,951    137,357 
Polski Koncern Naftowy ORLEN SA   14,288    208,962 
         636,416 
           
Qatar  |  0.4%          
Industries Qatar QSC   52,702    185,614 
Qatar National Bank QPSC   20,910    103,361 
         288,975 
           
Russia  |  0.0%          
PhosAgro PJSC (*), (¢)   42    0 
Severstal PJSC GDR (*), (¢)   9,589    0 
         0 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  69

 

 

 

 

         
Description  Shares   Fair
Value
 
             
Lazard Emerging Markets Equity Advantage Portfolio (continued)          
           
Saudi Arabia  |  3.0%          
Al Rajhi Bank (*)   15,066   $302,218 
Arabian Internet & Communications Services Co.   4,376    283,033 
Etihad Etisalat Co.   22,036    204,054 
Nahdi Medical Co.   5,031    224,339 
SABIC Agri-Nutrients Co.   8,581    333,788 
Saudi Arabian Oil Co.   22,533    192,609 
Saudi Basic Industries Corp.   17,518    416,792 
Saudi Electricity Co.   41,124    252,646 
Saudi Research & Media Group (*)   4,451    216,188 
         2,425,667 
           
South Africa  |  3.8%          
Absa Group Ltd.   21,529    245,744 
African Rainbow Minerals Ltd.   11,401    193,230 
Anglo American Platinum Ltd.   1,442    120,974 
FirstRand Ltd.   76,752    280,334 
Gold Fields Ltd. ADR   24,904    257,756 
Growthpoint Properties Ltd.   531,091    451,435 
Harmony Gold Mining Co. Ltd. ADR   33,213    112,924 
Impala Platinum Holdings Ltd.   8,935    111,712 
MTN Group Ltd.   20,848    156,166 
Naspers Ltd., N Shares   1,966    324,097 
Sappi Ltd. (*)   51,200    148,169 
Sasol Ltd.   7,651    121,018 
Sibanye Stillwater Ltd.   47,302    125,589 
Standard Bank Group Ltd.   12,439    122,846 
Thungela Resources Ltd.   8,209    138,780 
Vodacom Group Ltd.   16,508    118,423 
         3,029,197 
           
South Korea  |  11.5%          
BGF retail Co. Ltd.   1,495    249,330 
CJ CheilJedang Corp.   533    160,858 
DB HiTek Co. Ltd.   2,449    72,794 
DB Insurance Co. Ltd.   4,734    245,524 

 

The accompanying notes are an integral part of these financial statements.

 

70  Annual Report

 

 

 

 

         
Description  Shares   Fair
Value
 
               
Lazard Emerging Markets Equity Advantage Portfolio (continued)              
               
DGB Financial Group, Inc.   18,385   $101,994 
Hanwha Aerospace Co. Ltd.   1,974    114,276 
HL Mando Co. Ltd.   6,050    194,343 
HMM Co. Ltd.   8,781    136,938 
Hyundai Rotem Co. Ltd. (*)   7,208    160,619 
KB Financial Group, Inc.   3,394    129,274 
Kia Corp.   16,422    774,546 
Korean Reinsurance Co.   49,080    264,925 
KT Corp.   28,217    756,274 
KT&G Corp.   8,367    605,003 
LG Chem Ltd.   516    246,839 
LG Electronics, Inc.   1,526    105,331 
LG Innotek Co. Ltd.   918    185,527 
LIG Nex1 Co. Ltd.   1,572    113,873 
Meritz Financial Group, Inc. (*)   8,724    297,480 
NCSoft Corp.   767    274,261 
Samsung Electro-Mechanics Co. Ltd.   2,985    311,059 
Samsung Electronics Co. Ltd. GDR   2,515    2,789,477 
Samsung SDI Co. Ltd.   580    273,298 
SK Hynix, Inc.   3,757    226,141 
Woori Financial Group, Inc.   52,752    484,594 
         9,274,578 
           
Taiwan  |  14.2%          
Accton Technology Corp.   32,000    243,883 
Advanced Energy Solution Holding Co. Ltd.   4,000    83,579 
Advantech Co. Ltd.   20,000    215,130 
Asia Vital Components Co. Ltd.   34,000    123,785 
ASPEED Technology, Inc.   1,100    60,213 
Chailease Holding Co. Ltd.   62,500    440,871 
China Airlines Ltd.   170,000    105,011 
Chung-Hsin Electric & Machinery Manufacturing Corp.   135,000    294,992 
Delta Electronics, Inc.   102,000    950,212 
E Ink Holdings, Inc.   24,000    125,593 
Eva Airways Corp.   120,000    109,825 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  71

 

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Equity Advantage Portfolio (continued)          
           
Evergreen Marine Corp. Taiwan Ltd.   18,800   $98,069 
Faraday Technology Corp.   23,000    106,489 
Feng TAY Enterprise Co. Ltd.   23,000    154,392 
Global Unichip Corp.   12,000    249,932 
Hiwin Technologies Corp.   32,000    189,857 
Hua Nan Financial Holdings Co. Ltd.   240,000    175,232 
International Games System Co. Ltd.   20,000    281,886 
Lotes Co. Ltd.   13,000    349,099 
MediaTek, Inc.   15,000    304,681 
Nan Ya Printed Circuit Board Corp.   20,000    147,486 
Novatek Microelectronics Corp.   24,000    246,141 
Poya International Co. Ltd.   13,000    210,347 
Realtek Semiconductor Corp.   11,000    100,483 
Ruentex Development Co. Ltd.   105,500    148,353 
SinoPac Financial Holdings Co. Ltd.   660,060    357,248 
Taiwan Semiconductor Manufacturing Co. Ltd.   315,000    4,591,014 
Tong Yang Industry Co. Ltd.   159,000    222,815 
Unimicron Technology Corp.   55,000    214,420 
United Microelectronics Corp.   217,000    285,095 
Voltronic Power Technology Corp.   4,000    200,715 
Yang Ming Marine Transport Corp.   34,000    72,390 
         11,459,238 
           
Thailand  |  2.5%          
Bangkok Bank Public Co. Ltd.   67,200    291,035 
Bangkok Dusit Medical Services PCL NVDR   235,500    197,223 
Bumrungrad Hospital Public Co. Ltd. (‡)   60,600    370,931 
Central Retail Corp. Public Co. Ltd (‡)   117,100    156,370 
Chularat Hospital Public Co. Ltd. NVDR   1,702,300    180,686 
Kasikornbank Public Co. Ltd. NVDR   38,500    163,508 
Kiatnakin Phatra Bank Public Co. Ltd NVDR   59,000    125,314 
Krung Thai Bank Public Co. Ltd. NVDR   595,800    303,855 
Land & Houses Public Co. Ltd. (‡)   717,400    205,060 
         1,993,982 

 

The accompanying notes are an integral part of these financial statements.

 

72  Annual Report

 

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Equity Advantage Portfolio (continued)          
           
Turkey  |  1.0%          
Akbank TAS   204,266   $213,419 
Haci Omer Sabanci Holding AS   69,406    167,347 
Turk Hava Yollari AO (*)   38,791    291,928 
Turkiye Is Bankasi AS, C Shares   255,696    174,713 
         847,407 
           
United Arab Emirates  |  1.1%          
Abu Dhabi Islamic Bank PJSC   83,458    206,792 
Emaar Properties PJSC   178,639    284,350 
Fertiglobe PLC   113,753    130,909 
National Marine Dredging Co. (*)   37,134    247,576 
         869,627 
           
Total Common Stocks
(Cost $78,854,156)
        77,182,411 
           
Preferred Stocks  |  0.9%          
           
Brazil  |  0.9%          
Gerdau SA   22,900    126,564 
Petroleo Brasileiro SA   136,239    637,697 
           
Total Preferred Stocks
(Cost $873,499)
        764,261 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  73

 

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Equity Advantage Portfolio (concluded)          
           
Short-Term Investments  |  2.4%          
State Street Institutional Treasury Money Market Fund, Premier Class, 3.79 % (7 day yield) (Cost $1,905,055)   1,905,055   $1,905,055 
           
Total Investments  |  99.1%
(Cost $81,632,710)
       $79,851,727 
           
Cash and Other Assets in Excess of Liabilities  |  0.9%        747,662 
           
Net Assets  |  100.0%       $80,599,389 

 

The accompanying notes are an integral part of these financial statements.

 

74  Annual Report

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Equity Portfolio          
           
Common Stocks  |  98.0%          
           
Brazil  |  11.0%          
Banco do Brasil SA   6,867,126   $45,078,872 
BB Seguridade Participacoes SA   10,346,617    65,697,983 
CCR SA   16,237,417    33,258,210 
Engie Brasil Energia SA   2,979,600    21,303,441 
Petroleo Brasileiro SA ADR   5,120,889    54,537,468 
Vale SA ADR   2,272,351    38,561,796 
Vibra Energia SA   7,121,800    20,975,464 
         279,413,234 
           
China  |  25.5%          
A-Living Smart City Services Co. Ltd.   18,727,250    22,245,855 
Anhui Conch Cement Co. Ltd., Class H   9,756,451    33,830,954 
China Construction Bank Corp., Class H   141,988,224    88,964,110 
China Medical System Holdings Ltd.   15,640,000    24,610,112 
China Merchants Bank Co. Ltd., Class H   5,914,494    32,786,461 
China Shenhua Energy Co. Ltd., Class H   6,588,610    18,966,816 
China Vanke Co. Ltd., Class H   18,297,449    36,674,319 
ENN Natural Gas Co. Ltd., Class A   9,555,253    22,096,870 
Gree Electric Appliances, Inc. of Zhuhai, Class A   7,203,385    33,420,814 
Hengan International Group Co. Ltd.   9,050,500    47,961,447 
Huayu Automotive Systems Co. Ltd., Class A   12,869,648    32,091,187 
Lenovo Group Ltd.   52,488,000    43,114,769 
Midea Group Co. Ltd., Class A   3,069,799    22,802,566 
Ping An Insurance (Group) Co. of China Ltd., Class H   8,994,000    59,362,124 
Sinopharm Group Co. Ltd., Class H   21,654,414    54,915,990 
Tingyi (Cayman Islands) Holding Corp.   22,302,000    39,278,035 
Weichai Power Co. Ltd., Class H   25,461,288    33,927,022 
         647,049,451 
           
Czech Republic  |  0.1%          
CEZ AS   57,731    1,965,898 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  75

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Equity Portfolio (continued)          
           
Egypt  |  1.0%          
Commercial International Bank Egypt SAE GDR   21,653,490   $25,842,206 
           
Greece  |  1.1%          
OPAP SA   2,073,359    29,393,984 
           
Hong Kong  |  1.1%          
ASMPT Ltd.   3,838,600    27,366,307 
           
Hungary  |  2.4%          
MOL Hungarian Oil & Gas PLC   2,641,461    18,450,460 
OTP Bank Nyrt   1,561,763    42,228,610 
         60,679,070 
           
India  |  6.6%          
Axis Bank Ltd.   2,268,911    25,502,227 
Bajaj Auto Ltd.   483,215    21,080,593 
Bharat Petroleum Corp. Ltd.   6,384,169    25,459,862 
Indus Towers Ltd.   15,164,704    34,828,963 
Petronet LNG Ltd.   10,585,729    27,508,168 
UPL Ltd.   3,945,758    34,161,778 
         168,541,591 
           
Indonesia  |  4.2%          
PT Astra International Tbk   60,138,900    21,909,803 
PT Bank Mandiri (Persero) Tbk   65,714,642    41,761,799 
PT Telkom Indonesia (Persero) Tbk ADR   1,127,502    26,890,923 
PT United Tractors Tbk   9,232,700    15,459,784 
         106,022,309 
           
Mexico  |  5.0%          
America Movil SAB de CV, Class L ADR   1,465,685    26,675,467 
Grupo Financiero Banorte SAB de CV, Class O   3,765,337    27,034,526 
Grupo Mexico SAB de CV, Series B   6,266,572    21,999,651 
Kimberly-Clark de Mexico SAB de CV, Series A   18,696,695    31,729,644 
Ternium SA ADR   679,091    20,753,021 
         128,192,309 

The accompanying notes are an integral part of these financial statements.

 

76  Annual Report

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Equity Portfolio (continued)          
           
Portugal  |  2.8%          
Galp Energia SGPS SA   5,293,311   $71,626,186 
           
Russia  |  0.0%          
Mobile TeleSystems PJSC ADR (*), (¢)   4,695,624    5 
Sberbank of Russia PJSC (*), (¢)   13,596,421    13 
         18 
           
South Africa  |  7.6%          
Anglo American PLC   510,263    19,957,755 
Bidvest Group Ltd.   1,849,471    23,309,087 
Life Healthcare Group Holdings Ltd.   21,029,340    20,885,550 
Nedbank Group Ltd.   4,109,120    51,412,934 
Sanlam Ltd.   7,965,031    22,820,668 
Standard Bank Group Ltd.   3,169,024    31,297,003 
Vodacom Group Ltd.   3,183,969    22,840,710 
         192,523,707 
           
South Korea  |  13.9%          
Coway Co. Ltd.   630,264    27,986,024 
Hyundai Mobis Co. Ltd.   177,809    28,346,243 
KB Financial Group, Inc.   1,238,906    47,188,658 
Kia Corp.   414,057    19,529,057 
KT Corp.   868,886    23,287,926 
KT&G Corp.   341,929    24,724,280 
Samsung Electronics Co. Ltd.   1,765,384    77,850,058 
Shinhan Financial Group Co. Ltd.   1,454,740    40,536,710 
SK Hynix, Inc.   1,041,969    62,718,067 
         352,167,023 
           
Taiwan  |  11.6%          
ASE Technology Holding Co. Ltd.   18,490,000    56,437,999 
Globalwafers Co. Ltd.   1,446,000    20,087,371 
Hon Hai Precision Industry Co. Ltd.   7,567,425    24,585,654 
MediaTek, Inc.   1,500,000    30,468,117 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  77

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Equity Portfolio (concluded)          
           
Novatek Microelectronics Corp.   3,304,000   $33,885,385 
Quanta Computer, Inc.   16,791,000    39,480,296 
Taiwan Semiconductor Manufacturing Co. Ltd.   5,060,913    73,761,028 
Wiwynn Corp.   665,000    17,231,082 
         295,936,932 
           
Thailand  |  2.4%          
Kasikornbank Public Co. Ltd.   4,638,154    19,739,657 
PTT Exploration & Production PCL (‡)   4,497,800    22,920,794 
Siam Cement Public Co. Ltd. (‡)   1,773,500    17,512,257 
         60,172,708 
           
United Kingdom  |  1.7%          
Unilever PLC   847,062    42,506,756 
           
Total Common Stocks
(Cost $2,525,490,490)
        2,489,399,689 
           
Short-Term Investments  |  1.7%          
State Street Institutional Treasury Money Market Fund, Premier Class, 3.79 % (7 day yield) (Cost $43,692,631)   43,692,631    43,692,631 
           
Total Investments  |  99.7%
(Cost $2,569,183,121)
       $2,533,092,320 
           
Cash and Other Assets in Excess of Liabilities  |  0.3%        7,335,532 
           
Net Assets  |  100.0%       $2,540,427,852 

 

The accompanying notes are an integral part of these financial statements.

 

78  Annual Report

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Strategic Equity Portfolio          
           
Common Stocks  |  98.6%          
           
Brazil  |  7.4%          
Banco BTG Pactual SA   120,388   $545,403 
BB Seguridade Participacoes SA   81,500    517,501 
Odontoprev SA   209,760    358,472 
Petroleo Brasileiro SA ADR   88,024    937,456 
Vale SA ADR   53,590    909,422 
         3,268,254 
           
China  |  24.7%          
Alibaba Group Holding Ltd. ADR (*)   13,506    1,189,743 
Anhui Conch Cement Co. Ltd., Class H   160,000    554,808 
ANTA Sports Products Ltd.   51,200    671,264 
China Merchants Bank Co. Ltd., Class H   162,500    900,804 
China Vanke Co. Ltd., Class H   245,222    491,508 
CSPC Pharmaceutical Group Ltd.   510,000    535,889 
ENN Energy Holdings Ltd.   41,200    574,774 
JD.com, Inc. ADR   13,100    735,303 
JD.com, Inc., Class A   1,175    33,030 
Midea Group Co. Ltd., Class A   73,300    544,475 
NetEase, Inc. ADR   6,256    454,373 
Sinopharm Group Co. Ltd., Class H   270,400    685,739 
Tencent Holdings Ltd.   25,792    1,096,217 
Trip.com Group Ltd. ADR (*)   27,144    933,754 
Weichai Power Co. Ltd., Class H   484,000    644,927 
Yum China Holdings, Inc.   16,697    912,491 
         10,959,099 
           
France  |  1.6%          
Pernod Ricard SA ADR   17,462    686,780 
           
Greece  |  0.8%          
OPAP SA   25,552    362,250 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  79

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Strategic Equity Portfolio (continued)          
           
Hong Kong  |  3.9%          
AIA Group Ltd.   97,200   $1,070,853 
Techtronic Industries Co. Ltd.   57,782    643,403 
         1,714,256 
           
India  |  15.2%          
HDFC Bank Ltd.   93,005    1,830,833 
ITC Ltd.   174,063    697,703 
Reliance Industries Ltd.   47,956    1,471,104 
SBI Cards & Payment Services Ltd.   35,723    342,761 
State Bank of India   99,660    736,396 
Tata Consultancy Services Ltd.   29,740    1,171,026 
UPL Ltd.   59,498    515,125 
         6,764,948 
           
Indonesia  |  5.2%          
PT Astra International Tbk   1,181,200    430,335 
PT Bank Central Asia Tbk   1,549,100    849,294 
PT Bank Mandiri (Persero) Tbk   899,100    571,380 
PT Telkom Indonesia (Persero) Tbk ADR   20,018    477,429 
         2,328,438 
           
Macau  |  1.0%          
Sands China Ltd. (*)   136,400    451,889 
           
Mexico  |  4.3%          
America Movil SAB de CV, Class L ADR   34,497    627,845 
Grupo Financiero Banorte SAB de CV, Class O   61,577    442,113 
Grupo Mexico SAB de CV, Series B   110,499    387,922 
Kimberly-Clark de Mexico SAB de CV, Series A   272,974    463,257 
         1,921,137 
           
Russia  |  0.0%          
Mobile TeleSystems PJSC ADR (*), (¢)   45,259    0 
Sberbank of Russia PJSC (*), (¢)   213,889    0 
         0 

 

The accompanying notes are an integral part of these financial statements.

 

80  Annual Report

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Strategic Equity Portfolio (continued)          
           
Saudi Arabia  |  2.4%          
Arabian Internet & Communications Services Co.   9,912   $641,094 
Saudi National Bank   31,787    427,911 
         1,069,005 
           
South Africa  |  4.2%          
Anglo American PLC   26,249    1,026,669 
Capitec Bank Holdings Ltd.   4,222    461,824 
Vodacom Group Ltd.   53,245    381,961 
         1,870,454 
           
South Korea  |  11.0%          
Coway Co. Ltd.   10,956    486,486 
Hyundai Mobis Co. Ltd.   3,219    513,172 
Kia Corp.   7,300    344,306 
Samsung Electronics Co. Ltd.   32,904    1,451,003 
Shinhan Financial Group Co. Ltd.   42,317    1,179,174 
SK Hynix, Inc.   15,384    925,992 
         4,900,133 
           
Taiwan  |  13.5%          
ASE Technology Holding Co. Ltd.   142,000    433,434 
Chailease Holding Co. Ltd.   126,000    888,795 
CTBC Financial Holding Co. Ltd.   929,000    667,694 
Hon Hai Precision Industry Co. Ltd.   235,136    763,929 
MediaTek, Inc.   30,000    609,362 
Quanta Computer, Inc.   231,000    543,145 
Taiwan Semiconductor Manufacturing Co. Ltd.   144,387    2,104,390 
         6,010,749 
           
Thailand  |  1.4%          
CP ALL Public Co. Ltd.   310,400    611,659 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  81

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Emerging Markets Strategic Equity Portfolio (concluded)          
           
United Kingdom  |  2.0%          
Unilever PLC   17,667   $886,555 
           
Total Common Stocks
(Cost $47,696,545)
        43,805,606 
           
Preferred Stocks  |  1.0%          
           
Brazil  |  1.0%          
Banco Bradesco SA
(Cost $614,633)
   152,810    443,124 
           
Short-Term Investments  |  0.6%          
State Street Institutional Treasury Money Market Fund, Premier Class, 3.79 % (7 day yield) (Cost $276,372)   276,372    276,372 
           
Total Investments  |  100.2%
(Cost $48,587,550)
       $44,525,102 
           
Liabilities in Excess of Cash and Other Assets  |  (0.2)%        (90,278)
           
Net Assets  |  100.0%       $44,434,824 

 

The accompanying notes are an integral part of these financial statements.

 

82  Annual Report

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Equity Franchise Portfolio          
           
Common Stocks  |  91.7%          
           
Belgium  |  1.0%          
Anheuser-Busch InBev SA/NV   27,261   $1,638,882 
           
France  |  2.0%          
Vinci SA   32,555    3,251,431 
           
Germany  |  9.4%          
Fresenius Medical Care AG & Co. KGaA   245,668    8,035,349 
Knorr-Bremse AG   126,819    6,930,000 
         14,965,349 
           
Japan  |  3.7%          
Secom Co. Ltd.   104,701    5,972,711 
           
Luxembourg  |  3.9%          
SES SA   949,360    6,197,366 
           
Spain  |  3.9%          
Ferrovial SA   239,154    6,256,113 
           
United Kingdom  |  6.3%          
National Grid PLC   389,919    4,683,465 
Smith & Nephew PLC   290,578    3,882,054 
United Utilities Group PLC   126,122    1,512,386 
         10,077,905 
           
United States  |  61.5%          
Alphabet, Inc., Class C (*)   34,763    3,084,521 
Cognizant Technology Solutions Corp., Class A   167,108    9,556,906 
CVS Health Corp.   88,067    8,206,964 
DaVita, Inc. (*)   44,633    3,332,746 
DENTSPLY SIRONA, Inc.   147,614    4,700,030 
eBay, Inc.   149,935    6,217,804 
Fiserv, Inc. (*)   62,239    6,290,496 

 

The accompanying notes are an integral part of these financial statements.

 

Annual Report  83

 

 

 

         
Description  Shares   Fair
Value
 
           
Lazard Equity Franchise Portfolio (concluded)          
           
H&R Block, Inc.   156,351   $5,708,375 
International Game Technology PLC   424,669    9,631,493 
Medtronic PLC   82,485    6,410,734 
Norfolk Southern Corp.   12,995    3,202,228 
Omnicom Group, Inc.   117,892    9,616,450 
Pediatrix Medical Group, Inc. (*)   348,715    5,181,905 
Stericycle, Inc. (*)   30,185    1,505,930 
Tapestry, Inc.   248,329    9,456,368 
Visa, Inc., Class A   30,501    6,336,888