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: 6/30/21
ITEM 1. REPORTS TO STOCKHOLDERS.
Lazard Funds
Semi-Annual Report
June 30, 2021
Equity Funds
Lazard Developing Markets Equity Portfolio | Lazard International Equity Portfolio | |
Lazard Emerging Markets Core Equity Portfolio | Lazard International Equity Select Portfolio | |
Lazard Emerging Markets Equity Advantage Portfolio | Lazard International Equity Value Portfolio | |
Lazard Emerging Markets Equity Portfolio | Lazard International Quality Growth Portfolio | |
Lazard Emerging Markets Strategic Equity Portfolio | Lazard International Small Cap Equity Portfolio | |
Lazard Equity Franchise Portfolio | Lazard International Strategic Equity Portfolio | |
Lazard Global Equity Select Portfolio | Lazard Managed Equity Volatility Portfolio | |
Lazard Global Listed Infrastructure Portfolio | Lazard US Equity Concentrated Portfolio | |
Lazard Global Strategic Equity Portfolio | Lazard US Equity Focus Portfolio | |
Lazard International Equity Advantage Portfolio | Lazard US Small-Mid Cap Equity Portfolio | |
Lazard International Equity Concentrated Portfolio | Lazard US Sustainable Equity Portfolio |
The Lazard Funds, Inc. Table of Contents
Please consider a Portfolio’s investment objective, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. (the “Fund”), you may obtain a prospectus or a Portfolio’s summary prospectus by calling 800-823-6300, or online, at www.lazardassetmanagement.com. Read the prospectus or the Portfolio’s summary prospectus carefully before you invest. The prospectus and a Portfolio’s summary prospectus contain the investment objective, risks, charges, expenses and other information about the Portfolio, which are not detailed in this report.
Distributed by Lazard Asset Management Securities LLC.
Semi-Annual Report | 1 |
The Lazard Funds, Inc. A Message from Lazard (unaudited)
Dear Shareholder,
Progress in the long battle against COVID-19 brightened the economic outlook in many parts of the world in the first six months of 2021, and that was reflected in the global equity markets. The MSCI World Index returned a healthy 13% as vaccination rates rose, many economies reopened, and recovery took hold, especially in the United States where vaccination accelerated dramatically.
Yet, this ride up was far from smooth. During the first half of 2021, investor sentiment seemed to alternate, often from day-to-day, between growing optimism over the economic rebound and worry over the downside risks that could derail the recovery, from uneven vaccine distribution to outbreaks of the virus in Europe and Asia and the emergence of more virus strains.
Increasingly, investors also became concerned with an “upside risk” that could result from faster economic growth: inflation. Amid supply-chain bottlenecks, surging commodity prices, and sharp increases in China’s producer prices, inflation moved front and center in the second quarter. The key concern was that the huge fiscal stimulus in the United States, in particular, could drive inflation higher, forcing the Federal Reserve (the “Fed”) and other central banks to retreat from their easy monetary policy before economic recovery is fully realized. In fact, the US Consumer Price Index (CPI) to date in 2021 jumped to an annualized 5% in May—the highest rate in more than a decade and well above the Fed’s 2% target for inflation.
However, the Fed has maintained that recent higher inflation is temporary and due to the global economy restarting. At their meeting in June, the Federal Open Market Committee moved up its own median estimate for the timing of their next interest rate increase to 2023 from 2024, a signal that the economy is recovering more quickly than the central bank had expected, but also that it is not currently overheating, which would warrant action sooner. In sum, the Fed seemed to relieve many investors’ concerns over inflation, for now.
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In this tug-of-war market environment, the equity bulls won out as many companies reported higher earnings, brighter outlooks, or both. Although stock markets in both developed and emerging markets generally gained, developed markets generally performed better than emerging markets as vaccination rates and economic reopening advanced more quickly in developed markets. In the United States, the S&P 500 Index hit a series of new highs thanks in part to exceptionally strong corporate earnings.
We remain optimistic for the second half of 2021. The Fed expects US real gross domestic product (“GDP”) growth to reach a staggering 7% for the year (after nearly -3.5% in 2020), and vaccination rates should continue to climb, helping to boost growth, particularly in the emerging markets. Still, like the past six months, the journey is likely to be bumpy. Inflation, economic data, and the path of recovery itself may seem volatile at times. As of the end of the semi-annual period, a highly infectious COVID-19 strain has become dominant around the world, a sobering reminder that we are still fighting the pandemic.
In the push-pull of the financial markets, we believe fundamental analysis and stock selection are crucial to staying on track. We value your continued confidence in us, and, as always, we will strive for long-term patterns of performance that are consistent with your expectations.
Sincerely,
Lazard Asset Management LLC
Semi-Annual Report | 3 |
The Lazard Funds, Inc. Performance Overviews (unaudited)
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 June 30, 2021
One year | Five year | Ten year | ||||||||||
Institutional Shares** | 37.96% | 12.94% | 2.92% | |||||||||
Open Shares** | 37.67% | 12.57% | 2.58% | |||||||||
MSCI Emerging Markets Index | 40.90% | 13.03% | 4.28% |
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Lazard Emerging Markets Core Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Core Equity Portfolio and the MSCI Emerging Markets Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Years | Since Inception | † | |||||||||
Institutional Shares | 36.10% | 10.44% | 5.04% | |||||||||
Open Shares | 35.73% | 10.05% | 4.67% | |||||||||
R6 Shares | 36.17% | N/A | 4.81% | |||||||||
MSCI Emerging Markets Index | 40.90% | 13.03% | 6.20% (Institutional and Open Shares) 7.87% (R6 Shares) |
† | The inception date for the Institutional and Open Shares was October 31, 2013 and for the R6 Shares was April 6, 2018. |
Semi-Annual Report | 5 |
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 June 30, 2021
One Year | Five Years | Since Inception | † | |||||||||
Institutional Shares** | 44.93% | 13.92% | 8.97% | |||||||||
Open Shares** | 44.51% | 13.59% | 8.65% | |||||||||
MSCI Emerging Markets Index | 40.90% | 13.03% | 7.81% |
† | The inception date for the Portfolio was May 29, 2015. |
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Lazard Emerging Markets Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Equity Portfolio and the MSCI Emerging Markets Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Years | Ten Years | Since Inception | † | ||||||||||||
Institutional Shares** | 40.87% | 7.72% | 2.38% | 6.67% | ||||||||||||
Open Shares** | 40.54% | 7.44% | 2.11% | 6.40% | ||||||||||||
R6 Shares** | 40.87% | 7.72% | N/A | 4.32% | ||||||||||||
MSCI Emerging Markets Index | 40.90% | 13.03% | 4.28% | 6.25% (Institutional Shares) 6.82% (Open Shares) 8.25% (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. |
Semi-Annual Report | 7 |
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 June 30, 2021
One Year | Five Years | Ten Years | ||||||||||
Institutional Shares** | 36.64% | 10.75% | 2.91% | |||||||||
Open Shares** | 36.19% | 10.40% | 2.62% | |||||||||
MSCI Emerging Markets Index | 40.90% | 13.03% | 4.28% |
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 June 30, 2021
One Year | Since Inception | † | ||||||
Institutional Shares** | 49.58% | 9.87% | ||||||
Open Shares** | 49.27% | 9.61% | ||||||
MSCI World Index | 39.04% | 13.56% |
† | The inception date for the Portfolio was September 29, 2017. |
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Lazard Global Equity Select Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Equity Select Portfolio and the MSCI ACWI®*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Years | Since Inception | † | |||||||||
Institutional Shares** | 37.55% | 14.66% | 10.28% | |||||||||
Open Shares** | 37.16% | 14.33% | 9.97% | |||||||||
MSCI ACWI | 39.26% | 14.61% | 9.94% |
† | The inception date for the Portfolio was December 31, 2013. |
Lazard Global Listed Infrastructure Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Listed Infrastructure Portfolio, the MSCI World Core Infrastructure (Hedged) Index and the MSCI World Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Years | Ten Years | ||||||||||
Institutional Shares** | 12.17% | 9.29% | 11.15% | |||||||||
Open Shares** | 11.95% | 9.03% | 10.84% | |||||||||
MSCI World Index | 39.04% | 14.83% | 10.65% | |||||||||
MSCI World Core Infrastructure (USD Hedged) Index | 16.10% | 9.69% | 10.27% |
Semi-Annual Report | 9 |
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 June 30, 2021
One Year | Five Years | Since Inception | † | |||||||||
Institutional Shares** | 38.14% | 14.48% | 9.91% | |||||||||
Open Shares** | 38.47% | 14.19% | 9.63% | |||||||||
MSCI ACWI | 39.26% | 14.61% | 9.84% |
† | The inception date for the Portfolio was August 29, 2014. |
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Lazard International Equity Advantage Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Advantage Portfolio and the MSCI EAFE® Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Years | Since Inception | † | |||||||||
Institutional Shares** | 34.08% | 8.84% | 4.89% | |||||||||
Open Shares** | 33.78% | 8.53% | 4.60% | |||||||||
MSCI EAFE Index | 32.35% | 10.28% | 5.98% |
† | The inception date for the Portfolio was May 29, 2015. |
Lazard International Equity Concentrated Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Concentrated Portfolio and the MSCI ACWI ex-US*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Years | Since Inception | † | |||||||||
Institutional Shares** | 29.88% | 6.37% | 2.85% | |||||||||
Open Shares** | 29.76% | 6.11% | 2.61% | |||||||||
MSCI ACWI ex-US | 35.72% | 11.08% | 5.53% |
† | The inception date for the Portfolio was August 29, 2014. |
Semi-Annual Report | 11 |
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 June 30, 2021
One Year | Five Years | Ten Years | Since Inception | † | ||||||||||||
Institutional Shares** | 30.45% | 7.67% | 5.90% | 6.12% | ||||||||||||
Open Shares** | 30.09% | 7.39% | 5.61% | 5.09% | ||||||||||||
R6 Shares** | 30.44% | 7.68% | N/A | 4.99% | ||||||||||||
MSCI EAFE Index | 32.35% | 10.28% | 5.89% | 5.70% (Institutional Shares) 5.40% (Open Shares) 5.38% (R6 Shares) |
† | The inception date for the Institutional Shares was October 29, 1991, for the Open Shares was January 23, 1997 and for the R6 Shares was April 1, 2015. |
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Lazard International Equity Select Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Select Portfolio, the MSCI ACWI ex-US and the MSCI EAFE/ACWI ex-US Linked Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Years | Ten Years | ||||||||||
Institutional Shares** | 29.12% | 7.79% | 5.24% | |||||||||
Open Shares** | 28.80% | 7.47% | 4.91% | |||||||||
MSCI ACWI ex-US | 35.72% | 11.08% | 5.45% | |||||||||
MSCI EAFE/ACWI ex-US Linked Index | 35.72% | 11.08% | 5.45% |
Lazard International Equity Value Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Value Portfolio and the MSCI EAFE Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Since Inception | † | ||||||
Institutional Shares** | 36.70% | 3.61% | ||||||
Open Shares** | 36.51% | 3.40% | ||||||
MSCI EAFE Index | 32.35% | 12.24% |
† | The inception date for the Portfolio was October 31, 2018. |
Semi-Annual Report | 13 |
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 June 30, 2021
One Year | Since Inception | † | ||||||
Institutional Shares** | 41.51% | 25.98% | ||||||
Open Shares** | 41.22% | 25.63% | ||||||
MSCI ACWI ex-US | 35.72% | 16.59% |
† | 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 June 30, 2021
One Year | Five Years | Ten Years | ||||||||||
Institutional Shares** | 40.44% | 10.04% | 8.31% | |||||||||
Open Shares** | 40.16% | 9.77% | 8.01% | |||||||||
MSCI EAFE Small Cap Index | 40.98% | 12.03% | 8.38% |
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Lazard International Strategic Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Strategic Equity Portfolio and the MSCI EAFE Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Years | Ten Years | Since Inception | † | ||||||||||||
Institutional Shares** | 34.42% | 9.79% | 7.29% | 7.02% | ||||||||||||
Open Shares** | 34.02% | 9.51% | 7.01% | 5.87% | ||||||||||||
R6 Shares** | 34.37% | 9.80% | N/A | 6.97% | ||||||||||||
MSCI EAFE Index | 32.35% | 10.28% | 5.89% | 5.32% (Institutional Shares) 4.53% (Open Shares) 7.29% (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. |
Semi-Annual Report | 15 |
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 June 30, 2021
One Year | Five Years | Since Inception | † | |||||||||
Institutional Shares** | 19.97% | 7.48% | 6.58% | |||||||||
Open Shares** | 19.61% | 7.17% | 6.26% | |||||||||
MSCI World Index | 39.04% | 14.83% | 11.09% |
† | The inception date for the Portfolio was May 29, 2015. |
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Lazard US Equity Concentrated Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Equity Concentrated Portfolio, the S&P 500 Index and the Russell 1000 Value/S&P 500 Linked Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Years | Ten Years | Since Inception | † | ||||||||||||
Institutional Shares** | 36.28% | 13.60% | 13.40% | 9.53% | ||||||||||||
Open Shares** | 35.89% | 13.29% | 13.05% | 9.21% | ||||||||||||
R6 Shares** | 36.26% | N/A | N/A | 13.65% | ||||||||||||
S&P 500 Index | 40.79% | 17.65% | 14.84% | 10.52% (Institutional and Open Shares) 18.02% (R6 Shares) | ||||||||||||
Russell 1000 Value/S&P 500 Linked Index | 40.79% | 17.65% | 14.45% | 9.87% (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. |
Semi-Annual Report | 17 |
Lazard US Equity Focus Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Equity Select Portfolio and the S&P 500 Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Years | Ten Years | Since Inception | † | ||||||||||||
Institutional Shares** | 43.50% | 17.63% | 13.41% | 9.23% | ||||||||||||
Open Shares** | 43.13% | 17.30% | 13.08% | 8.92% | ||||||||||||
R6 Shares** | 43.47% | 17.64% | N/A | 13.15% | ||||||||||||
S&P 500 Index | 40.79% | 17.65% | 14.84% | 10.19% (Institutional and Open Shares) 14.51% (R6 Shares) |
† | The inception date for the Institutional and Open Shares was December 30, 2004 and for the R6 Shares was May 19, 2014. |
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Lazard US Small-Mid Cap Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Small-Mid Cap Equity Portfolio and the Russell 2500 Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Years | Ten Years | Since Inception | † | ||||||||||||
Institutional Shares** | 49.78% | 13.25% | 10.46% | 10.99% | ||||||||||||
Open Shares** | 49.37% | 12.91% | 10.12% | 8.76% | ||||||||||||
R6 Shares** | 49.91% | N/A | N/A | 16.13% | ||||||||||||
Russell 2500 Index | 57.79% | 16.35% | 12.86% | 11.54% (Institutional Shares) 10.39% (Open Shares) 25.87% (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. |
Semi-Annual Report | 19 |
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 June 30, 2021
One Year | Since Inception | † | ||||||
Institutional Shares** | 40.69% | 40.69% | ||||||
Open Shares** | 40.34% | 40.34% | ||||||
S&P 500 Index | 40.79% | 40.79% |
† | The inception date for the Institutional Shares and Open Shares was June 30, 2020. |
Notes to Performance Overviews:
* | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s administrator (“State Street”), or DST Asset Manager Solutions, Inc., the Fund’s transfer agent and dividend disbursement agent (“DST”); without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
Performance results do not include adjustments made for financial reporting purposes in accordance with US Generally Accepted Accounting Principles (“GAAP”), if any, and also exclude one-time adjustments related to reimbursed custodian out-of-pocket expenses (Note 3 in the Notes to Financial Statements) for Lazard International Small Cap Equity and Lazard US Small-Mid Cap Equity Portfolios and settlement proceeds received from class action lawsuits by the Lazard International Equity and Lazard International Small Cap Equity Portfolios, as well as by the Lazard Developing Markets Equity Portfolio. 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 the 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 |
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periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares. | |
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 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 the Portfolio. |
The MSCI Emerging Markets Index is a free-float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The MSCI Emerging Markets Index consists of 27 emerging markets country indices. | |
The MSCI World Index is a free-float-adjusted market capitalization index that is designed to measure global developed markets equity performance. The MSCI World Index consists of 23 developed markets country indices. | |
The MSCI ACWI is a free-float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 50 country indices comprising 23 developed and 27 emerging markets country indices. | |
The MSCI World Core Infrastructure (Hedged) Index (the “Infrastructure Index”) captures large and mid-cap securities across the 23 developed market countries. The Infrastructure Index is designed to represent the performance of listed companies within the developed markets that are engaged in core industrial infrastructure activities. Note that Lazard Global Listed Infrastructure Portfolio invests in a range of companies globally, not specifically developed markets countries. | |
The MSCI EAFE Index is a free-float-adjusted market capitalization index that is designed to measure developed markets equity performance, excluding the United States and Canada. The MSCI EAFE Index consists of 21 developed markets country indices. | |
The MSCI ACWI ex-US is a free-float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. The MSCI ACWI ex-US consists of 49 country indices comprising 22 developed and 27 emerging markets country indices. | |
The MSCI EAFE/ACWI ex-US Linked Index is an unmanaged index created by the Investment Manager which links the performance of the MSCI EAFE Index for all periods through June 30, 2010 (when Lazard International Equity Select Portfolio’s benchmark index changed) and the MSCI ACWI ex-US for all periods thereafter. | |
The MSCI EAFE Small Cap Index targets all companies with market capitalizations below that of the companies in the MSCI EAFE Index and up to 99% coverage of the free-float-adjusted market capitalization in each market (subject to minimum investability criteria and a universal minimum size range). The MSCI EAFE Small Cap Index consists of 21 developed markets country indices. | |
The S&P 500 Index is a market capitalization-weighted index of 500 companies in leading industries of the US economy. |
Semi-Annual Report | 21 |
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 Lazard US Equity Concentrated Portfolio’s investment strategy changed) and the S&P 500 Index for all periods thereafter. | |
The Russell 1000 Value Index measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values. The Russell 1000 Index measures the performance of the large-cap segment of the US equity universe. It includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. | |
The Russell 2500 Index measures the performance of the small-to mid-cap segment of the US equity universe, commonly referred to as “smid” cap. The Russell 2500 Index is a subset of the Russell 3000® Index. The Russell 3000 Index measures the performance of the largest 3000 US companies, representing approximately 98% of the investable US equity market. The Russell 2500 Index includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership. |
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The Lazard Funds, Inc.
Information About Your Portfolio’s Expenses (unaudited)
Expense Example
As a shareholder in a Portfolio, you incur ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from January 1, 2021 through June 30, 2021 and held for the entire period.
Actual Expenses
For each share class of the Portfolios, the first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each share class of the Portfolios, the second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
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Portfolio | Beginning Account Value 1/1/21 | Ending Account Value 6/30/21 | Expenses Paid During Period* 1/1/21 - 6/30/21 | Annualized Expense Ratio During Period 1/1/21 - 6/30/21 | ||||||||||||||||
Developing Markets Equity | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,026.60 | $ | 5.78 | 1.15 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | 1.15 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,025.60 | $ | 7.03 | 1.40 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,017.85 | $ | 7.00 | 1.40 | % | ||||||||||||
Emerging Markets Core Equity | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,035.10 | $ | 5.80 | 1.15 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | 1.15 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,033.60 | $ | 7.56 | 1.50 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,017.36 | $ | 7.50 | 1.50 | % | ||||||||||||
R6 Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,035.80 | $ | 5.80 | 1.15 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | 1.15 | % | ||||||||||||
Emerging Markets Equity Advantage | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,109.50 | $ | 5.07 | 0.97 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.98 | $ | 4.86 | 0.97 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,108.00 | $ | 6.79 | 1.30 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.35 | $ | 6.51 | 1.30 | % |
24 Semi-Annual Report
Portfolio | Beginning Account Value 1/1/21 | Ending Account Value 6/30/21 | Expenses Paid During Period* 1/1/21 - 6/30/21 | Annualized Expense Ratio During Period 1/1/21 - 6/30/21 | ||||||||||||||||
Emerging Markets Equity | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,108.70 | $ | 5.75 | 1.10 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.34 | $ | 5.51 | 1.10 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,107.10 | $ | 7.05 | 1.35 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.10 | $ | 6.76 | 1.35 | % | ||||||||||||
R6 Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,108.60 | $ | 5.75 | 1.10 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.34 | $ | 5.51 | 1.10 | % | ||||||||||||
Emerging Markets Strategic Equity | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,047.10 | $ | 6.09 | 1.20 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.84 | $ | 6.01 | 1.20 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,045.50 | $ | 7.35 | 1.45 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,017.60 | $ | 7.25 | 1.45 | % | ||||||||||||
Equity Franchise | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,169.10 | $ | 5.11 | 0.95 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.08 | $ | 4.76 | 0.95 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,168.10 | $ | 6.45 | 1.20 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.84 | $ | 6.01 | 1.20 | % |
Semi-Annual Report 25
Portfolio | Beginning Account Value 1/1/21 | Ending Account Value 6/30/21 | Expenses Paid During Period* 1/1/21 - 6/30/21 | Annualized Expense Ratio During Period 1/1/21 - 6/30/21 | ||||||||||||||||
Global Equity Select | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,122.50 | $ | 4.47 | 0.85 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.58 | $ | 4.26 | 0.85 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,120.60 | $ | 6.05 | 1.15 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | 1.15 | % | ||||||||||||
Global Listed Infrastructure | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,085.70 | $ | 4.91 | 0.95 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.08 | $ | 4.76 | 0.95 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,084.30 | $ | 6.25 | 1.21 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.79 | $ | 6.06 | 1.21 | % | ||||||||||||
Global Strategic Equity | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,104.00 | $ | 4.96 | 0.95 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.08 | $ | 4.76 | 0.95 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,105.70 | $ | 3.24 | 0.62 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.72 | $ | 3.11 | 0.62 | % | ||||||||||||
International Equity Advantage | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,119.20 | $ | 4.73 | 0.90 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.33 | $ | 4.51 | 0.90 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,118.20 | $ | 6.04 | 1.15 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | 1.15 | % |
26 Semi-Annual Report
Portfolio | Beginning Account Value 1/1/21 | Ending Account Value 6/30/21 | Expenses Paid During Period* 1/1/21 - 6/30/21 | Annualized Expense Ratio During Period 1/1/21 - 6/30/21 | ||||||||||||||||
International Equity Concentrated | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,057.90 | $ | 4.64 | 0.91 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.28 | $ | 4.56 | 0.91 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,057.80 | $ | 5.92 | 1.16 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.04 | $ | 5.81 | 1.16 | % | ||||||||||||
International Equity | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,054.40 | $ | 4.18 | 0.82 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.73 | $ | 4.11 | 0.82 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,053.30 | $ | 5.50 | 1.08 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.44 | $ | 5.41 | 1.08 | % | ||||||||||||
R6 Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,054.50 | $ | 4.08 | 0.80 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.83 | $ | 4.01 | 0.80 | % | ||||||||||||
International Equity Select | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,047.70 | $ | 4.52 | 0.89 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.38 | $ | 4.46 | 0.89 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,046.60 | $ | 5.84 | 1.15 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.09 | $ | 5.76 | 1.15 | % |
Semi-Annual Report 27
Portfolio | Beginning Account Value 1/1/21 | Ending Account Value 6/30/21 | Expenses Paid During Period* 1/1/21 - 6/30/21 | Annualized Expense Ratio During Period 1/1/21 - 6/30/21 | ||||||||||||||||
International Equity Value | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,094.00 | $ | 4.93 | 0.95 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.08 | $ | 4.76 | 0.95 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,094.00 | $ | 6.23 | 1.20 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.84 | $ | 6.01 | 1.20 | % | ||||||||||||
International Quality Growth | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,103.90 | $ | 4.43 | 0.85 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.58 | $ | 4.26 | 0.85 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,102.50 | $ | 5.73 | 1.10 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.34 | $ | 5.51 | 1.10 | % | ||||||||||||
International Small Cap Equity | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,119.30 | $ | 5.99 | 1.14 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.14 | $ | 5.71 | 1.14 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,117.80 | $ | 7.30 | 1.39 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,017.90 | $ | 6.95 | 1.39 | % |
28 Semi-Annual Report
Portfolio | Beginning Account Value 1/1/21 | Ending Account Value 6/30/21 | Expenses Paid During Period* 1/1/21 - 6/30/21 | Annualized Expense Ratio During Period 1/1/21 - 6/30/21 | ||||||||||||||||
International Strategic Equity | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,074.90 | $ | 4.12 | 0.80 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.83 | $ | 4.01 | 0.80 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,073.00 | $ | 5.40 | 1.05 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.59 | $ | 5.26 | 1.05 | % | ||||||||||||
R6 Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,074.80 | $ | 4.12 | 0.80 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.83 | $ | 4.01 | 0.80 | % | ||||||||||||
Managed Equity Volatility | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,099.30 | $ | 3.90 | 0.75 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | 0.75 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,096.80 | $ | 5.20 | 1.00 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.84 | $ | 5.01 | 1.00 | % | ||||||||||||
Portfolio | Beginning | |||||||||||||||||||
US Equity Concentrated | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,158.40 | $ | 4.01 | 0.75 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | 0.75 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,156.70 | $ | 5.45 | 1.02 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.74 | $ | 5.11 | 1.02 | % | ||||||||||||
R6 Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,158.70 | $ | 4.01 | 0.75 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | 0.75 | % |
Semi-Annual Report 29
Portfolio | Beginning Account Value 1/1/21 | Ending Account Value 6/30/21 | Expenses Paid During Period* 1/1/21 - 6/30/21 | Annualized Expense Ratio During Period 1/1/21 - 6/30/21 | ||||||||||||||||
US Equity Focus | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,167.50 | $ | 3.76 | 0.70 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 | 0.70 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,165.80 | $ | 5.10 | 0.95 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.08 | $ | 4.76 | 0.95 | % | ||||||||||||
R6 Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,167.40 | $ | 3.76 | 0.70 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.51 | 0.70 | % | ||||||||||||
US Small-Mid Cap Equity | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,170.60 | $ | 5.17 | 0.96 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.03 | $ | 4.81 | 0.96 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,169.06 | $ | 6.72 | 1.25 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.60 | $ | 6.26 | 1.25 | % | ||||||||||||
R6 Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,170.60 | $ | 5.17 | 0.96 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.03 | $ | 4.81 | 0.96 | % | ||||||||||||
US Sustainable Equity | ||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,146.70 | $ | 3.99 | 0.75 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | 0.75 | % | ||||||||||||
Open Shares | ||||||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,145.80 | $ | 5.32 | 1.00 | % | ||||||||||||
Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.84 | $ | 5.01 | 1.00 | % |
* | 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 181/365 (to reflect one-half year period). |
30 Semi-Annual Report
The Lazard Funds, Inc.
Portfolio Holdings Presented by Asset Class/Sector June 30, 2021 (unaudited)
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 | 13.7 | % | 15.5 | % | 10.7 | % | 6.6 | % | ||||||||||||
Consumer Discretionary | 16.7 | 17.0 | 17.0 | 6.8 | ||||||||||||||||
Consumer Staples | 0.9 | 5.6 | 4.3 | 7.1 | ||||||||||||||||
Energy | 2.2 | 4.4 | 5.3 | 10.0 | ||||||||||||||||
Financials | 24.9 | 14.3 | 17.5 | 28.2 | ||||||||||||||||
Health Care | 0.6 | 1.4 | 5.7 | 2.8 | ||||||||||||||||
Industrials | 10.3 | 3.9 | 5.5 | 4.5 | ||||||||||||||||
Information Technology | 24.7 | 27.2 | 21.3 | 19.9 | ||||||||||||||||
Materials | 4.7 | 9.7 | 9.0 | 9.2 | ||||||||||||||||
Real Estate | — | — | 0.8 | 1.0 | ||||||||||||||||
Utilities | 0.6 | 0.5 | 2.0 | 1.4 | ||||||||||||||||
Short-Term Investments | 0.7 | 0.5 | 0.9 | 2.5 | ||||||||||||||||
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 Emerging Global Listed Infrastructure Portfolio | ||||||||||||||||
Equity | ||||||||||||||||||||
Communication Services | 13.3 | % | 9.1 | % | 7.5 | % | 3.5 | % | ||||||||||||
Consumer Discretionary | 18.9 | 18.2 | 15.9 | — | ||||||||||||||||
Consumer Staples | 6.7 | — | 11.9 | — | ||||||||||||||||
Energy | 5.7 | — | — | — | ||||||||||||||||
Financials | 21.0 | — | 15.6 | — | ||||||||||||||||
Health Care | 2.4 | 25.3 | 12.5 | — | ||||||||||||||||
Industrials | 2.1 | 21.5 | 14.6 | 31.3 | ||||||||||||||||
Information Technology | 17.8 | 6.2 | 17.9 | — | ||||||||||||||||
Materials | 8.4 | — | 1.0 | — | ||||||||||||||||
Real Estate | 1.1 | — | — | — | ||||||||||||||||
Utilities | 1.5 | 17.2 | 1.1 | 54.9 | ||||||||||||||||
Short-Term Investments | 1.1 | 2.5 | 2.0 | 10.3 | ||||||||||||||||
Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
* | Represents percentage of total investments. |
† | Equity sector breakdown is based upon the underlying holdings of exchange-traded funds held by the Portfolio. |
Semi-Annual Report 31
Asset Class/Sector* | Lazard Global Strategic Equity Portfolio | Lazard International Equity Advantage Portfolio | Lazard International Equity Concentrated Portfolio | Lazard International Equity Portfolio | ||||||||||||||||
Equity | ||||||||||||||||||||
Communication Services | 12.2 | % | 5.3 | % | 5.9 | % | 6.9 | % | ||||||||||||
Consumer Discretionary | 11.7 | 13.3 | 11.7 | 10.9 | ||||||||||||||||
Consumer Staples | 2.3 | 9.4 | 8.9 | 8.5 | ||||||||||||||||
Energy | — | 2.7 | 3.5 | 4.4 | ||||||||||||||||
Financials | 16.6 | 16.8 | 9.3 | 13.9 | ||||||||||||||||
Health Care | 15.2 | 14.0 | 7.3 | 8.6 | ||||||||||||||||
Industrials | 10.5 | 15.7 | 16.3 | 22.4 | ||||||||||||||||
Information Technology | 23.6 | 8.6 | 9.8 | 5.5 | ||||||||||||||||
Materials | 4.0 | 7.4 | 8.3 | 6.4 | ||||||||||||||||
Real Estate | — | 2.8 | 5.4 | 3.3 | ||||||||||||||||
Utilities | 3.1 | 3.3 | 8.8 | 6.0 | ||||||||||||||||
Short-Term Investments | 0.8 | 0.7 | 4.8 | 3.2 | ||||||||||||||||
Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
Asset Class/Sector* | Lazard International Equity Select Portfolio | Lazard International Equity Value Portfolio | Lazard International Quality Growth Portfolio | Lazard International Small Cap Equity Portfolio | ||||||||||||||||
Equity | ||||||||||||||||||||
Communication Services | 8.4 | % | 5.9 | % | 9.4 | % | 4.8 | % | ||||||||||||
Consumer Discretionary | 13.1 | 30.0 | 14.3 | 11.2 | ||||||||||||||||
Consumer Staples | 6.3 | 13.7 | 12.9 | 7.4 | ||||||||||||||||
Energy | 6.1 | 3.8 | — | 1.6 | ||||||||||||||||
Financials | 16.2 | 19.9 | 21.7 | 13.9 | ||||||||||||||||
Health Care | 7.5 | 3.6 | 8.9 | 6.3 | ||||||||||||||||
Industrials | 18.6 | 12.1 | 16.0 | 21.2 | ||||||||||||||||
Information Technology | 7.1 | — | 15.2 | 13.5 | ||||||||||||||||
Materials | 6.7 | 7.6 | — | 6.6 | ||||||||||||||||
Real Estate | 1.7 | — | — | 8.6 | ||||||||||||||||
Utilities | 7.0 | 2.8 | — | 3.0 | ||||||||||||||||
Short-Term Investments | 1.3 | 0.6 | 1.6 | 1.9 | ||||||||||||||||
Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
* | Represents percentage of total investments. |
32 Semi-Annual Report
Asset Class/Sector* | Lazard International Strategic Equity Portfolio | Lazard Managed Equity Volatility Portfolio | Lazard US Equity Concentrated Portfolio | Lazard US Equity Focus Portfolio | ||||||||||||||||
Equity | ||||||||||||||||||||
Communication Services | 6.8 | % | 7.2 | % | 9.0 | % | 8.6 | % | ||||||||||||
Consumer Discretionary | 15.1 | 7.8 | 14.0 | 15.2 | ||||||||||||||||
Consumer Staples | 9.8 | 18.9 | 3.1 | 2.6 | ||||||||||||||||
Energy | 1.7 | 0.7 | — | — | ||||||||||||||||
Financials | 17.5 | 7.7 | 8.6 | 18.5 | ||||||||||||||||
Health Care | 6.8 | 17.8 | 13.1 | 17.2 | ||||||||||||||||
Industrials | 21.5 | 9.5 | 11.3 | 12.0 | ||||||||||||||||
Information Technology | 5.2 | 9.4 | 27.1 | 23.9 | ||||||||||||||||
Materials | 5.1 | 3.3 | 3.3 | — | ||||||||||||||||
Real Estate | 2.5 | 6.4 | 10.1 | — | ||||||||||||||||
Utilities | 5.5 | 7.8 | — | — | ||||||||||||||||
Short-Term Investments | 2.5 | 3.5 | 0.4 | 2.0 | ||||||||||||||||
Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||||||
Asset Class/Sector* | Lazard US Small-Mid Cap Equity Portfolio | Lazard US Sustainable Equity Portfolio |
| |||||||||||||||||
Equity | ||||||||||||||||||||
Communication Services | 2.2 | % | 1.7 | % | ||||||||||||||||
Consumer Discretionary | 11.6 | 10.6 | ||||||||||||||||||
Consumer Staples | 2.6 | 4.3 | ||||||||||||||||||
Energy | 4.2 | — | ||||||||||||||||||
Financials | 14.8 | 11.2 | ||||||||||||||||||
Health Care | 13.5 | 23.6 | ||||||||||||||||||
Industrials | 17.0 | 12.2 | ||||||||||||||||||
Information Technology | 16.6 | 28.6 | ||||||||||||||||||
Materials | 8.1 | 3.9 | ||||||||||||||||||
Real Estate | 7.8 | 2.3 | ||||||||||||||||||
Utilities | 1.6 | — | ||||||||||||||||||
Short-Term Investments | — | 1.6 | ||||||||||||||||||
Total Investments | 100.0 | % | 100.0 | % |
* | Represents percentage of total investments. |
Semi-Annual Report 33
The Lazard Funds, Inc. Portfolios of Investments
June 30, 2021 (unaudited)
The accompanying notes are an integral part of these financial statements.
34 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Developing Markets Equity Portfolio (continued) | ||||||||
Hong Kong | 1.4% | ||||||||
China Gas Holdings, Ltd. | 437,800 | $ | 1,335,922 | |||||
Techtronic Industries Co., Ltd. | 93,502 | 1,636,398 | ||||||
2,972,320 | ||||||||
India | 10.6% | ||||||||
Bajaj Finance, Ltd. (*) | 25,666 | 2,079,135 | ||||||
HDFC Bank, Ltd. ADR (*) | 60,049 | 4,390,783 | ||||||
ICICI Bank, Ltd. Sponsored ADR (*) | 422,252 | 7,220,509 | ||||||
Motherson Sumi Systems, Ltd. (*) | 546,711 | 1,782,464 | ||||||
Mphasis, Ltd. | 71,518 | 2,055,286 | ||||||
Reliance Industries, Ltd. | 107,055 | 3,044,473 | ||||||
UPL, Ltd. | 247,028 | 2,637,755 | ||||||
23,210,405 | ||||||||
Indonesia | 2.6% | ||||||||
PT Bank Central Asia Tbk | 1,155,100 | 2,399,887 | ||||||
PT Bank Rakyat Indonesia (Persero) Tbk | 11,744,000 | 3,191,128 | ||||||
5,591,015 | ||||||||
Macau | 1.5% | ||||||||
SJM Holdings, Ltd. (*) | 2,932,000 | 3,198,732 | ||||||
Mexico | 2.5% | ||||||||
Grupo Financiero Banorte SAB de CV, Class O | 837,357 | 5,408,753 | ||||||
Peru | 0.6% | ||||||||
Credicorp, Ltd. (*) | 11,247 | 1,362,124 | ||||||
Philippines | 2.0% | ||||||||
BDO Unibank, Inc. | 1,062,085 | 2,462,920 | ||||||
International Container Terminal Services, Inc. | 591,329 | 1,979,651 | ||||||
4,442,571 | ||||||||
Poland | 1.1% | ||||||||
InPost SA | 120,309 | 2,417,097 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 35
Description | Shares | Fair Value | ||||||
Lazard Developing Markets Equity Portfolio (continued) | ||||||||
Russia | 6.3% | ||||||||
Fix Price Group, Ltd. GDR | 169,075 | $ | 1,479,473 | |||||
Mail.Ru Group, Ltd. GDR (*) | 107,865 | 2,445,504 | ||||||
Novatek PJSC Sponsored GDR | 8,145 | 1,787,206 | ||||||
Sberbank of Russia PJSC (‡) | 1,287,470 | 5,364,502 | ||||||
Yandex NV Class A (*) | 39,132 | 2,768,589 | ||||||
13,845,274 | ||||||||
South Africa | 4.5% | ||||||||
Capitec Bank Holdings, Ltd. | 41,772 | 4,935,153 | ||||||
Standard Bank Group, Ltd. | 380,765 | 3,403,655 | ||||||
The Foschini Group, Ltd. (*) | 142,713 | 1,589,999 | ||||||
9,928,807 | ||||||||
South Korea | 14.0% | ||||||||
CJ Logistics Corp. (*) | 17,480 | 2,747,540 | ||||||
NCSoft Corp. | 3,725 | 2,711,275 | ||||||
Samsung Biologics Co., Ltd. (*) | 1,820 | 1,358,522 | ||||||
Samsung Electronics Co., Ltd. | 187,827 | 13,462,565 | ||||||
SK Hynix, Inc. | 56,711 | 6,423,592 | ||||||
WONIK IPS Co., Ltd. | 89,172 | 3,929,019 | ||||||
30,632,513 | ||||||||
Taiwan | 15.1% | ||||||||
Airtac International Group | 57,000 | 2,199,687 | ||||||
ASE Technology Holding Co., Ltd. | 1,140,289 | 4,583,665 | ||||||
Bizlink Holding, Inc. | 305,000 | 2,837,379 | ||||||
Chroma ATE, Inc. | 379,000 | 2,604,881 | ||||||
Hiwin Technologies Corp. | 346,742 | 4,915,679 | ||||||
MediaTek, Inc. | 55,000 | 1,898,968 | ||||||
RichWave Technology Corp. | 188,000 | 3,272,371 | ||||||
Silicon Motion Technology Corp. ADR | 47,931 | 3,072,377 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 354,000 | 7,559,623 | ||||||
32,944,630 |
The accompanying notes are an integral part of these financial statements.
36 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Developing Markets Equity Portfolio (concluded) | ||||||||
Total Common Stocks (Cost $153,872,402) | $ | 213,231,418 | ||||||
Preferred Stocks | 2.0% | ||||||||
Brazil | 2.0% | ||||||||
Banco Bradesco SA ADR (Cost $3,265,782) | 850,248 | 4,361,772 | ||||||
Short-Term Investments | 0.7% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $1,514,776) | 1,514,776 | 1,514,776 | ||||||
Total Investments | 100.4% (Cost $158,652,960) | $ | 219,107,966 | ||||||
Liabilities in Excess of Cash and Other Assets | (0.4)% | (844,787 | ) | ||||||
Net Assets | 100.0% | $ | 218,263,179 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 37
The accompanying notes are an integral part of these financial statements.
38 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Core Equity Portfolio (continued) | ||||||||
New Oriental Education & Technology Group, Inc. Sponsored ADR (*) | 143,531 | $ | 1,175,519 | |||||
PICC Property & Casualty Co., Ltd., Class H | 1,239,770 | 1,084,461 | ||||||
Ping An Insurance (Group) Co. of China, Ltd., Class H | 324,000 | 3,163,192 | ||||||
Prosus NV | 7,504 | 734,234 | ||||||
Shenzhou International Group Holdings, Ltd. | 125,891 | 3,179,756 | ||||||
Tencent Holdings, Ltd. | 221,800 | 16,683,605 | ||||||
Tencent Music Entertainment Group ADR (*) | 51,817 | 802,127 | ||||||
Wuliangye Yibin Co., Ltd., Class A (*) | 59,500 | 2,744,501 | ||||||
Wuxi Biologics Cayman, Inc. (*) | 123,500 | 2,263,606 | ||||||
Wuxi Lead Intelligent Equipment Co., Ltd., Class A | 170,200 | 1,582,367 | ||||||
65,361,115 | ||||||||
Hong Kong | 1.7% | ||||||||
China Gas Holdings, Ltd. | 313,600 | 956,932 | ||||||
Techtronic Industries Co., Ltd. | 131,500 | 2,301,409 | ||||||
3,258,341 | ||||||||
India | 10.1% | ||||||||
HDFC Bank, Ltd. ADR (*) | 77,484 | 5,665,630 | ||||||
Hindalco Industries, Ltd. | 564,400 | 2,828,069 | ||||||
Infosys, Ltd. Sponsored ADR | 146,688 | 3,108,319 | ||||||
Maruti Suzuki India, Ltd. | 13,745 | 1,391,179 | ||||||
Motherson Sumi Systems, Ltd. (*) | 398,798 | 1,300,218 | ||||||
Reliance Industries, Ltd. | 85,771 | 2,439,190 | ||||||
UPL, Ltd. | 260,936 | 2,786,264 | ||||||
19,518,869 | ||||||||
Indonesia | 1.1% | ||||||||
PT Bank Mandiri (Persero) Tbk | 3,102,100 | 1,259,705 | ||||||
PT Telkom Indonesia (Persero) Tbk Sponsored ADR | 38,489 | 834,057 | ||||||
2,093,762 | ||||||||
Mexico | 3.1% | ||||||||
Arca Continental SAB de CV | 283,845 | 1,646,341 | ||||||
Cemex SAB de CV Sponsored ADR (*) | 167,366 | 1,405,874 | ||||||
Grupo Aeroportuario del Pacifico SAB de CV ADR | 14,459 | 1,545,523 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 39
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Core Equity Portfolio (continued) | ||||||||
Grupo Financiero Banorte SAB de CV, Class O | 207,700 | $ | 1,341,600 | |||||
5,939,338 | ||||||||
Philippines | 0.8% | ||||||||
BDO Unibank, Inc. | 678,161 | 1,572,620 | ||||||
Poland | 1.9% | ||||||||
CD Projekt SA | 11,650 | 565,381 | ||||||
KGHM Polska Miedz SA | 64,372 | 3,166,363 | ||||||
3,731,744 | ||||||||
Russia | 5.3% | ||||||||
Fix Price Group, Ltd. GDR | 92,919 | 813,078 | ||||||
LUKOIL PJSC Sponsored ADR | 50,919 | 4,728,837 | ||||||
Sberbank of Russia PJSC Sponsored ADR | 53,682 | 895,952 | ||||||
Sberbank of Russia PJSC Sponsored ADR (London) | 146,254 | 2,426,656 | ||||||
Yandex NV Class A (*) | 19,289 | 1,364,697 | ||||||
10,229,220 | ||||||||
South Africa | 2.2% | ||||||||
Mondi PLC | 107,167 | 2,823,618 | ||||||
Naspers, Ltd., N Shares | 7,128 | 1,497,405 | ||||||
4,321,023 | ||||||||
South Korea | 14.3% | ||||||||
DB Insurance Co., Ltd. | 19,481 | 948,076 | ||||||
LG Chem, Ltd. | 2,466 | 1,861,658 | ||||||
NAVER Corp. | 4,354 | 1,614,547 | ||||||
NCSoft Corp. | 3,332 | 2,425,227 | ||||||
Orion Corp. | 10,881 | 1,145,133 | ||||||
Samsung Electronics Co., Ltd. | 197,890 | 14,183,834 | ||||||
Samsung SDI Co., Ltd. | 3,076 | 1,903,898 | ||||||
SK Hynix, Inc. | 33,102 | 3,749,427 | ||||||
27,831,800 |
The accompanying notes are an integral part of these financial statements.
40 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Core Equity Portfolio (continued) | ||||||||
Taiwan | 13.0% | ||||||||
Accton Technology Corp. | 109,000 | $ | 1,293,966 | |||||
Micro-Star International Co., Ltd. | 268,000 | 1,513,190 | ||||||
Realtek Semiconductor Corp. | 62,000 | 1,123,732 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR | 177,442 | 21,321,431 | ||||||
25,252,319 | ||||||||
United Kingdom | 2.2% | ||||||||
Anglo American PLC | 43,371 | 1,728,286 | ||||||
Unilever PLC Sponsored ADR | 42,240 | 2,471,040 | ||||||
4,199,326 | ||||||||
United States | 1.0% | ||||||||
Yum China Holdings, Inc. | 29,375 | 1,946,094 | ||||||
Total Common Stocks | ||||||||
(Cost $121,043,535) | 191,619,409 | |||||||
Preferred Stocks | 0.7% | ||||||||
Brazil | 0.7% | ||||||||
Itau Unibanco Holding SA Sponsored ADR (Cost $1,335,306) | 214,054 | 1,286,465 | ||||||
Short-Term Investments | 0.5% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $1,017,133) | 1,017,133 | 1,017,133 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 41
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Core Equity Portfolio (concluded) | ||||||||
Total Investments | 100.0% (Cost $123,395,974) | $ | 193,923,007 | ||||||
Cash and Other Assets in Excess of Liabilities | 0.0% | 13,626 | |||||||
Net Assets | 100.0% | $ | 193,936,633 |
The accompanying notes are an integral part of these financial statements.
42 Semi-Annual Report
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 43
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
China Merchants Bank Co., Ltd., Class H | 44,000 | $ | 375,449 | |||||
China Petroleum & Chemical Corp., Class H | 698,000 | 353,997 | ||||||
China Resources Cement Holdings, Ltd. | 128,000 | 121,666 | ||||||
China Resources Power Holdings Co., Ltd. | 112,000 | 152,907 | ||||||
China Yongda Automobiles Services Holdings, Ltd. | 72,000 | 128,898 | ||||||
Chongqing Brewery Co., Ltd., Class A (*) | 10,800 | 330,868 | ||||||
COSCO SHIPPING Holdings Co., Ltd., Class H (*) | 131,000 | 330,057 | ||||||
Country Garden Services Holdings Co., Ltd. | 12,000 | 129,678 | ||||||
CSPC Pharmaceutical Group, Ltd. | 177,840 | 257,460 | ||||||
Daan Gene Co., Ltd., Class A | 59,680 | 196,213 | ||||||
ENN Energy Holdings, Ltd. | 5,900 | 112,315 | ||||||
Focus Media Information Technology Co., Ltd., Class A | 48,000 | 69,919 | ||||||
Gigadevice Semiconductor Beijing, Inc., Class A | 5,800 | 168,569 | ||||||
Guangdong Baolihua New Energy Stock Co., Ltd., Class A | 121,200 | 95,860 | ||||||
Guangdong Hybribio Biotech Co., Ltd., Class A | 27,531 | 140,673 | ||||||
Haitian International Holdings, Ltd. | 34,000 | 114,073 | ||||||
Industrial & Commercial Bank of China, Ltd., Class H | 434,000 | 254,631 | ||||||
Intco Medical Technology Co., Ltd., Class A | 9,200 | 177,811 | ||||||
JD.com, Inc. ADR (*) | 7,036 | 561,543 | ||||||
Jiangsu Hengli Hydraulic Co., Ltd., Class A | 13,300 | 176,993 | ||||||
KE Holdings, Inc. ADR | 5,807 | 276,878 | ||||||
Kingfa Sci & Tech Co., Ltd., Class A | 39,400 | 127,234 | ||||||
KWG Living Group Holdings, Ltd. | 108,000 | 138,547 | ||||||
Lenovo Group, Ltd. | 242,000 | 278,333 | ||||||
Li Ning Co., Ltd. | 59,500 | 726,536 | ||||||
Meituan, Class B (*) | 24,400 | 1,007,758 | ||||||
NetDragon Websoft Holdings, Ltd. | 48,000 | 127,970 | ||||||
NetEase, Inc. ADR | 2,183 | 251,591 | ||||||
New China Life Insurance Co., Ltd., Class H | 42,800 | 146,079 | ||||||
New Oriental Education & Technology Group, Inc. Sponsored ADR (*) | 10,309 | 84,431 | ||||||
NIO, Inc. ADR (*) | 6,587 | 350,428 | ||||||
Oppein Home Group, Inc., Class A | 5,400 | 118,665 | ||||||
PetroChina Co., Ltd., Class H | 752,000 | 368,059 | ||||||
Pharmaron Beijing Co., Ltd., Class H | 9,500 | 253,293 | ||||||
Pinduoduo, Inc. ADR (*) | 2,792 | 354,640 |
The accompanying notes are an integral part of these financial statements.
44 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
Ping An Insurance (Group) Co. of China, Ltd., Class H | 76,000 | $ | 741,983 | |||||
Sany Heavy Industry Co., Ltd., Class A | 29,300 | 131,852 | ||||||
Shanghai Bairun Investment Holding Group Co., Ltd., Class A | 9,940 | 145,890 | ||||||
Shanghai Liangxin Electrical Co., Ltd., Class A | 50,180 | 175,097 | ||||||
Shenzhen Overseas Chinese Town Co., Ltd., Class A | 85,800 | 98,822 | ||||||
Shenzhou International Group Holdings, Ltd. | 7,100 | 179,332 | ||||||
Shijiazhuang Yiling Pharmaceutical Co., Ltd., Class A (*) | 34,300 | 154,810 | ||||||
Sinotruk Hong Kong, Ltd. | 49,500 | 106,088 | ||||||
Sungrow Power Supply Co., Ltd., Class A | 11,900 | 212,021 | ||||||
Tencent Holdings, Ltd. | 47,300 | 3,557,865 | ||||||
The People’s Insurance Co. Group of China, Ltd., Class H | 421,000 | 140,439 | ||||||
Tian Di Science & Technology Co., Ltd., Class A | 455,600 | 275,052 | ||||||
Tianneng Power International, Ltd. | 58,000 | 101,444 | ||||||
Topsports International Holdings, Ltd. | 86,000 | 140,897 | ||||||
Vipshop Holdings, Ltd. ADR (*) | 10,089 | 202,587 | ||||||
Weibo Corp. Sponsored ADR (*) | 1,549 | 81,508 | ||||||
Wuxi Biologics Cayman, Inc. (*) | 17,000 | 311,589 | ||||||
Yadea Group Holdings, Ltd. | 98,000 | 210,792 | ||||||
Yuexiu Property Co., Ltd. | 168,400 | 177,419 | ||||||
Zhende Medical Co., Ltd.,Class A (*) | 17,339 | 117,879 | ||||||
Zhongsheng Group Holdings, Ltd. | 13,000 | 108,165 | ||||||
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H | 112,600 | 117,908 | ||||||
26,724,116 | ||||||||
Greece | 0.6% | ||||||||
Hellenic Telecommunications Organization SA | 20,179 | 338,716 | ||||||
National Bank of Greece SA (*) | 43,279 | 123,296 | ||||||
462,012 | ||||||||
Hong Kong | 0.6% | ||||||||
Kingboard Holdings, Ltd. | 23,000 | 127,674 | ||||||
Kingboard Laminates Holdings, Ltd. | 82,000 | 183,728 | ||||||
PAX Global Technology, Ltd. | 125,000 | 143,772 | ||||||
455,174 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 45
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
Hungary | 0.6% | ||||||||
MOL Hungarian Oil & Gas PLC (*) | 22,532 | $ | 179,310 | |||||
Richter Gedeon Nyrt. | 10,061 | 267,872 | ||||||
447,182 | ||||||||
India | 7.8% | ||||||||
Axis Bank, Ltd. GDR (*) | 1,771 | 89,061 | ||||||
Dr Reddy’s Laboratories, Ltd. ADR | 5,808 | 426,946 | ||||||
GAIL India, Ltd. GDR | 20,902 | 246,748 | ||||||
HDFC Bank, Ltd. ADR (*) | 8,166 | 597,098 | ||||||
ICICI Bank, Ltd. Sponsored ADR (*) | 30,324 | 518,540 | ||||||
Infosys, Ltd. Sponsored ADR | 52,325 | 1,108,767 | ||||||
Reliance Industries, Ltd. Sponsored GDR (#) | 9,420 | 533,243 | ||||||
State Bank of India GDR | 5,271 | 294,480 | ||||||
Tata Motors, Ltd. Sponsored ADR (*) | 17,272 | 393,456 | ||||||
Vedanta, Ltd. ADR | 29,138 | 413,760 | ||||||
Wipro, Ltd. ADR | 89,118 | 696,012 | ||||||
WNS Holdings, Ltd. ADR (*) | 6,168 | 492,638 | ||||||
5,810,749 | ||||||||
Indonesia | 1.2% | ||||||||
Japfa Comfeed Indonesia Tbk PT | 876,100 | 104,531 | ||||||
Kalbe Farma Tbk PT | 1,310,300 | 126,512 | ||||||
PT Bank Central Asia Tbk | 76,700 | 159,355 | ||||||
PT Telkom Indonesia (Persero) Tbk Sponsored ADR | 16,383 | 355,020 | ||||||
Vale Indonesia Tbk PT | 326,100 | 103,685 | ||||||
849,103 | ||||||||
Malaysia | 1.7% | ||||||||
Frontken Corp. Bhd | 186,550 | 129,349 | ||||||
Hartalega Holdings Berhad | 76,000 | 134,525 | ||||||
Hong Leong Financial Group Bhd | 34,300 | 147,049 | ||||||
Inari Amertron Berhad | 350,500 | 268,201 | ||||||
Petronas Chemicals Group Bhd | 68,000 | 132,085 | ||||||
Public Bank Berhad | 369,000 | 365,351 | ||||||
UWC BHD | 85,200 | 104,860 | ||||||
1,281,420 | ||||||||
The accompanying notes are an integral part of these financial statements.
46 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
Mexico | 2.2% | ||||||||
Arca Continental SAB de CV | 60,300 | $ | 349,748 | |||||
Gruma SAB de CV, Class B | 14,385 | 160,787 | ||||||
Grupo Mexico SAB de CV, Series B | 67,800 | 318,899 | ||||||
Kimberly-Clark de Mexico SAB de CV, Series A | 142,600 | 253,023 | ||||||
Qualitas Controladora SAB de CV | 36,600 | 170,588 | ||||||
Wal-Mart de Mexico SAB de CV | 121,600 | 396,936 | ||||||
1,649,981 | ||||||||
Philippines | 0.5% | ||||||||
International Container Terminal Services, Inc. | 59,700 | 199,864 | ||||||
Metropolitan Bank & Trust Co. | 167,000 | 166,584 | ||||||
366,448 | ||||||||
Poland | 1.8% | ||||||||
KGHM Polska Miedz SA | 4,409 | 216,872 | ||||||
Orange Polska SA (*) | 88,943 | 156,645 | ||||||
Polski Koncern Naftowy ORLEN SA | 6,111 | 123,105 | ||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 361,769 | 633,249 | ||||||
Powszechna Kasa Oszczednosci Bank Polski SA (*) | 19,260 | 191,158 | ||||||
1,321,029 | ||||||||
Russia | 2.7% | ||||||||
Gazprom PJSC Sponsored ADR | 26,617 | 203,490 | ||||||
LUKOIL PJSC Sponsored ADR | 5,436 | 504,840 | ||||||
MMC Norilsk Nickel PJSC ADR | 3,494 | 119,106 | ||||||
PhosAgro PJSC GDR | 5,109 | 103,430 | ||||||
Polymetal International PLC | 5,843 | 125,840 | ||||||
Ros Agro PLC GDR | 12,248 | 168,573 | ||||||
Rosneft Oil Co. PJSC GDR | 36,065 | 279,840 | ||||||
RusHydro PJSC ADR | 89,493 | 101,537 | ||||||
Sberbank of Russia PJSC Sponsored ADR (London) | 18,419 | 305,609 | ||||||
Yandex NV Class A (*) | 1,544 | 109,238 | ||||||
2,021,503 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 47
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
Saudi Arabia | 2.7% | ||||||||
Al Rajhi Bank | 18,920 | $ | 559,989 | |||||
Dr Sulaiman Al Habib Medical Services Group Co. | 6,544 | 285,150 | ||||||
Jarir Marketing Co. | 8,475 | 477,265 | ||||||
Mobile Telecommunications Co. Saudi Arabia (*) | 58,362 | 226,261 | ||||||
Saudi Basic Industries Corp. | 4,435 | 144,036 | ||||||
Saudi Industrial Services Co. | 21,656 | 271,656 | ||||||
1,964,357 | ||||||||
South Africa | 2.2% | ||||||||
Anglo American Platinum, Ltd. | 735 | 84,936 | ||||||
Impala Platinum Holdings, Ltd. | 9,583 | 158,369 | ||||||
Mr Price Group, Ltd. | 11,304 | 166,571 | ||||||
Naspers, Ltd., N Shares | 2,115 | 444,306 | ||||||
Northam Platinum, Ltd. (*) | 7,751 | 117,767 | ||||||
Sasol, Ltd. (*) | 9,955 | 152,217 | ||||||
Sibanye Stillwater, Ltd. | 29,983 | 125,454 | ||||||
Vodacom Group, Ltd. | 40,372 | 364,002 | ||||||
1,613,622 | ||||||||
South Korea | 14.9% | ||||||||
AfreecaTV Co., Ltd. | 2,279 | 240,855 | ||||||
BNK Financial Group, Inc. | 19,064 | 130,842 | ||||||
Celltrion, Inc. (*) | 407 | 97,057 | ||||||
CJ Corp. | 1,477 | 140,525 | ||||||
DB HiTek Co., Ltd. | 3,103 | 172,015 | ||||||
DGB Financial Group, Inc. | 23,849 | 196,984 | ||||||
Doosan Bobcat, Inc. (*) | 2,858 | 122,134 | ||||||
Hana Financial Group, Inc. | 21,925 | 895,694 | ||||||
Hankook Tire & Technology Co., Ltd. | 4,691 | 215,405 | ||||||
HMM Co., Ltd. (*) | 3,645 | 142,129 | ||||||
Hyundai Glovis Co., Ltd. | 794 | 147,393 | ||||||
Hyundai Mobis Co., Ltd. | 499 | 129,417 | ||||||
KB Financial Group, Inc. | 3,298 | 163,156 | ||||||
Kia Corp. | 6,053 | 481,724 | ||||||
Korea Electric Power Corp. | 7,958 | 175,630 | ||||||
Korea Electric Terminal Co., Ltd. | 1,767 | 158,509 |
The accompanying notes are an integral part of these financial statements.
48 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
Korean Reinsurance Co. | 38,899 | $ | 340,078 | |||||
KT Corp. | 20,455 | 577,681 | ||||||
KT&G Corp. | 4,804 | 360,003 | ||||||
Kumho Petrochemical Co., Ltd. | 694 | 135,007 | ||||||
Kyung Dong Navien Co., Ltd. | 2,165 | 134,781 | ||||||
LG Chem, Ltd. | 160 | 120,789 | ||||||
LG Electronics, Inc. | 925 | 134,234 | ||||||
LG Household & Health Care, Ltd. | 167 | 261,320 | ||||||
LG Innotek Co., Ltd. | 662 | 131,131 | ||||||
LOTTE Fine Chemical Co., Ltd. | 2,017 | 118,243 | ||||||
Osstem Implant Co., Ltd. | 1,658 | 167,420 | ||||||
POSCO | 724 | 222,802 | ||||||
Samsung Electro-Mechanics Co., Ltd. | 625 | 98,062 | ||||||
Samsung Electronics Co., Ltd. GDR | 2,109 | 3,763,862 | ||||||
Samsung Securities Co., Ltd. | 3,673 | 146,642 | ||||||
Seegene, Inc. | 1,366 | 100,274 | ||||||
SK Hynix, Inc. | 3,837 | 434,613 | ||||||
SK Telecom Co., Ltd. | 673 | 191,286 | ||||||
11,047,697 | ||||||||
Taiwan | 15.5% | ||||||||
Adimmune Corp. (*) | 76,000 | 146,253 | ||||||
Asia Cement Corp. | 188,000 | 342,221 | ||||||
China General Plastics Corp. | 131,000 | 177,321 | ||||||
China Life Insurance Co., Ltd. | 129,000 | 122,088 | ||||||
Delta Electronics, Inc. | 78,000 | 846,881 | ||||||
Evergreen Marine Corp. Taiwan, Ltd. (*) | 47,000 | 332,244 | ||||||
Feng TAY Enterprise Co., Ltd. | 15,000 | 131,746 | ||||||
Formosa Plastics Corp. | 106,000 | 390,677 | ||||||
Gigabyte Technology Co., Ltd. | 59,000 | 227,636 | ||||||
Greatek Electronics, Inc. | 71,000 | 200,800 | ||||||
International Games System Co., Ltd. | 5,000 | 150,655 | ||||||
MediaTek, Inc. | 10,000 | 345,267 | ||||||
Micro-Star International Co., Ltd. | 20,000 | 112,925 | ||||||
Nan Ya Plastics Corp. | 45,000 | 134,099 | ||||||
Nan Ya Printed Circuit Board Corp. | 16,000 | 223,670 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 49
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
Nantex Industry Co., Ltd. | 25,000 | $ | 128,643 | |||||
Nien Made Enterprise Co., Ltd. | 15,000 | 222,657 | ||||||
Novatek Microelectronics Corp. | 23,000 | 411,916 | ||||||
Pegavision Corp. | 7,000 | 151,745 | ||||||
Realtek Semiconductor Corp. | 8,000 | 144,998 | ||||||
Shin Foong Specialty & Applied Materials Co., Ltd. | 11,000 | 114,096 | ||||||
Silicon Motion Technology Corp. ADR | 2,105 | 134,930 | ||||||
Taiwan Hon Chuan Enterprise Co., Ltd. | 46,000 | 126,959 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 199,000 | 4,249,619 | ||||||
Tung Ho Steel Enterprise Corp. | 83,000 | 156,389 | ||||||
Unimicron Technology Corp. | 22,000 | 101,951 | ||||||
United Microelectronics Corp. | 127,000 | 242,035 | ||||||
Wan Hai Lines, Ltd. | 34,000 | 391,494 | ||||||
Yuanta Financial Holding Co., Ltd. | 1,078,000 | 1,038,826 | ||||||
11,500,741 | ||||||||
Thailand | 2.2% | ||||||||
Chularat Hospital Public Co., Ltd. NVDR | 1,995,600 | 248,030 | ||||||
Com7 Public Co., Ltd. NVDR | 80,300 | 175,154 | ||||||
Hana Microelectronics Public Co., Ltd. NVDR | 108,900 | 242,473 | ||||||
Kasikornbank Public Co., Ltd. NVDR | 59,600 | 219,691 | ||||||
KCE Electronics Public Co., Ltd. NVDR | 74,900 | 180,235 | ||||||
PTT Exploration & Production Public Co., Ltd. | 74,800 | 274,228 | ||||||
SCG Packaging Public Co., Ltd. NVDR | 106,300 | 205,886 | ||||||
Sri Trang Agro-Industry Public Co., Ltd. (‡) | 85,100 | 107,537 | ||||||
1,653,234 | ||||||||
Turkey | 0.9% | ||||||||
Anadolu Efes Biracilik Ve Malt Sanayii AS | 50,402 | 128,843 | ||||||
BIM Birlesik Magazalar AS | 14,587 | 104,141 | ||||||
Coca-Cola Icecek AS | 11,026 | 98,478 | ||||||
Ford Otomotiv Sanayi AS | 6,647 | 129,881 | ||||||
Turkcell Iletisim Hizmetleri AS | 95,937 | 177,821 | ||||||
639,164 |
The accompanying notes are an integral part of these financial statements.
50 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Emerging Markets Equity Advantage Portfolio (concluded) | ||||||||
United States | 1.0% | ||||||||
Yum China Holdings, Inc. | 11,143 | $ | 738,224 | |||||
Total Common Stocks (Cost $66,593,934) | ||||||||
73,046,164 | ||||||||
Preferred Stocks | 0.2% | ||||||||
Brazil | 0.2% | ||||||||
Cia Energetica de Minas Gerais (Cost $136,482) | 51,100 | 124,622 | ||||||
Warrants | 0.0% | ||||||||
Malaysia | 0.0% | ||||||||
Frontken Corp. Bhd (Expires 05/03/26) (*) (Cost $0) | 56,050 | 3,780 | ||||||
Short-Term Investments | 0.9% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $702,754) | 702,754 | 702,754 | ||||||
Total Investments | 99.7% (Cost $67,433,170) | $ | 73,877,320 | ||||||
Cash and Other Assets in Excess of Liabilities | 0.3% | 186,954 | |||||||
Net Assets | 100.0% | $ | 74,064,274 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 51
The accompanying notes are an integral part of these financial statements.
52 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard Emerging Markets Equity Portfolio (continued) | ||||||||
Hungary | 2.4% | ||||||||
OTP Bank Nyrt. (*) | 1,848,287 | $ | 99,527,911 | |||||
India | 9.1% | ||||||||
Axis Bank, Ltd. (*) | 5,590,301 | 56,378,276 | ||||||
Bajaj Auto, Ltd. | 485,589 | 27,010,458 | ||||||
Bharat Petroleum Corp., Ltd. | 4,651,465 | 29,312,215 | ||||||
Coal India, Ltd. | 14,928,696 | 29,483,091 | ||||||
Hero MotoCorp, Ltd. | 588,742 | 23,006,805 | ||||||
Indus Towers, Ltd. | 10,669,794 | 34,316,239 | ||||||
Infosys, Ltd. Sponsored ADR | 1,004,560 | 21,286,626 | ||||||
Oil and Natural Gas Corp., Ltd. | 20,280,411 | 32,268,105 | ||||||
Power Grid Corp. of India, Ltd. | 8,205,557 | 25,660,042 | ||||||
Tata Consultancy Services, Ltd. | 659,498 | 29,714,814 | ||||||
UPL, Ltd. | 6,958,510 | 74,302,694 | ||||||
382,739,365 | ||||||||
Indonesia | 3.5% | ||||||||
PT Astra International Tbk | 80,759,200 | 27,513,824 | ||||||
PT Bank Mandiri (Persero) Tbk | 152,205,742 | 61,807,942 | ||||||
PT Telkom Indonesia (Persero) Tbk Sponsored ADR | 2,622,648 | 56,832,782 | ||||||
146,154,548 | ||||||||
Mexico | 5.2% | ||||||||
America Movil SAB de CV, Class L Sponsored ADR | 5,584,199 | 83,762,985 | ||||||
Grupo Financiero Banorte SAB de CV, Class O | 8,608,237 | 55,603,321 | ||||||
Grupo Mexico SAB de CV, Series B | 10,979,642 | 51,642,983 | ||||||
Kimberly-Clark de Mexico SAB de CV, Series A | 15,996,595 | 28,383,644 | ||||||
219,392,933 | ||||||||
Portugal | 1.0% | ||||||||
Galp Energia SGPS SA | 3,749,445 | 40,796,624 | ||||||
Russia | 10.2% | ||||||||
ALROSA PAO (*),(‡) | 28,391,760 | 52,093,286 | ||||||
Gazprom PJSC Sponsored ADR | 6,629,499 | 50,683,296 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 53
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard Emerging Markets Equity Portfolio (continued) | ||||||||
LUKOIL PJSC Sponsored ADR | 1,239,442 | $ | 115,106,726 | |||||
Magnit PJSC Sponsored GDR | 536,532 | 7,786,319 | ||||||
Mobile TeleSystems PJSC Sponsored ADR | 7,272,739 | 67,345,563 | ||||||
Sberbank of Russia PJSC (‡) | 24,789,457 | 103,290,255 | ||||||
X5 Retail Group NV GDR | 929,244 | 32,600,080 | ||||||
428,905,525 | ||||||||
South Africa | 6.5% | ||||||||
Life Healthcare Group Holdings, Ltd. (*) | 24,689,968 | 39,280,437 | ||||||
Mondi PLC | 1,165,550 | 30,709,721 | ||||||
Nedbank Group, Ltd. (*) | 5,519,815 | 66,064,556 | ||||||
Sanlam, Ltd. | 7,232,010 | 31,086,733 | ||||||
Standard Bank Group, Ltd. | 3,695,943 | 33,038,002 | ||||||
The Bidvest Group, Ltd. | 3,379,626 | 45,059,788 | ||||||
Vodacom Group, Ltd. | 3,002,707 | 27,072,978 | ||||||
272,312,215 | ||||||||
South Korea | 14.9% | ||||||||
Coway Co., Ltd. | 814,809 | 56,947,106 | ||||||
Hyundai Mobis Co., Ltd. | 229,872 | 59,617,693 | ||||||
KB Financial Group, Inc. | 1,531,755 | 75,777,849 | ||||||
KT&G Corp. | 660,225 | 49,476,018 | ||||||
Samsung Electronics Co., Ltd. | 2,282,304 | 163,584,925 | ||||||
Shinhan Financial Group Co., Ltd. | 1,880,701 | 67,735,907 | ||||||
SK Hynix, Inc. | 1,347,065 | 152,580,554 | ||||||
625,720,052 | ||||||||
Taiwan | 8.7% | ||||||||
ASE Technology Holding Co., Ltd. | 15,903,000 | 63,925,922 | ||||||
Globalwafers Co., Ltd. | 1,509,000 | 49,815,154 | ||||||
Hon Hai Precision Industry Co., Ltd. | 16,747,425 | 67,320,291 | ||||||
Novatek Microelectronics Corp. | 4,273,000 | 76,526,765 | ||||||
Quanta Computer, Inc. | 9,277,000 | 29,133,692 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 1,784,913 | 38,116,581 | ||||||
Wiwynn Corp. | 1,148,000 | 41,078,726 | ||||||
365,917,131 |
The accompanying notes are an integral part of these financial statements.
54 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard Emerging Markets Equity Portfolio (concluded) | ||||||||
Thailand | 2.3% | ||||||||
Kasikornbank Public Co., Ltd. | 9,412,954 | $ | 34,853,743 | |||||
The Siam Cement Public Co., Ltd. | 4,534,500 | 61,686,178 | ||||||
96,539,921 | ||||||||
United Kingdom | 2.9% | ||||||||
Anglo American PLC | 1,224,214 | 48,783,574 | ||||||
Unilever PLC | 1,220,510 | 71,435,580 | ||||||
120,219,154 | ||||||||
Total Common Stocks (Cost $3,013,032,659) | 3,930,594,701 | |||||||
Exchange-Traded Funds | 5.1% | ||||||||
iShares Core MSCI Emerging Markets ETF | 1,607,992 | 107,719,384 | ||||||
Vanguard FTSE Emerging Markets ETF | 1,987,076 | 107,918,097 | ||||||
Total Exchange-Traded Funds (Cost $160,340,541) | 215,637,481 | |||||||
Short-Term Investments | 2.5% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $104,299,399) | 104,299,399 | 104,299,399 | ||||||
Total Investments | 101.2% (Cost $3,277,672,599) | $ | 4,250,531,581 | ||||||
Liabilities in Excess of Cash and Other Assets | (1.2)% | (49,141,112 | ) | ||||||
Net Assets | 100.0% | $ | 4,201,390,469 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 55
The accompanying notes are an integral part of these financial statements.
56 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard Emerging Markets Strategic Equity Portfolio (continued) | ||||||||
Greece | 0.6% | ||||||||
OPAP SA | 29,260 | $ | 441,154 | |||||
Hong Kong | 2.3% | ||||||||
Sands China, Ltd. (*) | 227,200 | 956,908 | ||||||
Techtronic Industries Co., Ltd. | 45,782 | 801,241 | ||||||
1,758,149 | ||||||||
Hungary | 0.2% | ||||||||
OTP Bank Nyrt. (*) | 2,558 | 137,745 | ||||||
India | 12.6% | ||||||||
Axis Bank, Ltd. (*) | 115,461 | 1,164,426 | ||||||
HDFC Bank, Ltd. | 102,611 | 2,069,480 | ||||||
Hero MotoCorp, Ltd. | 22,392 | 875,032 | ||||||
ITC, Ltd. | 250,622 | 683,753 | ||||||
Reliance Industries, Ltd. | 67,094 | 1,908,046 | ||||||
Tata Consultancy Services, Ltd. | 45,818 | 2,064,409 | ||||||
UPL, Ltd. | 89,893 | 959,874 | ||||||
9,725,020 | ||||||||
Indonesia | 2.3% | ||||||||
PT Astra International Tbk | 1,164,500 | 396,733 | ||||||
PT Bank Central Asia Tbk | 411,300 | 854,535 | ||||||
PT Telkom Indonesia (Persero) Tbk Sponsored ADR | 24,209 | 524,609 | ||||||
1,775,877 | ||||||||
Mexico | 3.6% | ||||||||
America Movil SAB de CV, Class L Sponsored ADR | 41,682 | 625,230 | ||||||
Grupo Financiero Banorte SAB de CV, Class O | 105,677 | 682,601 | ||||||
Grupo Mexico SAB de CV, Series B | 193,399 | 909,657 | ||||||
Kimberly-Clark de Mexico SAB de CV, Series A | 328,874 | 583,539 | ||||||
2,801,027 | ||||||||
Russia | 6.5% | ||||||||
Fix Price Group, Ltd. GDR | 69,717 | 610,051 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 57
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard Emerging Markets Strategic Equity Portfolio (continued) | ||||||||
LUKOIL PJSC Sponsored ADR | 21,365 | $ | 1,984,163 | |||||
Mobile TeleSystems PJSC Sponsored ADR | 67,719 | 627,078 | ||||||
Sberbank of Russia PJSC (‡) | 251,631 | 1,048,471 | ||||||
Yandex NV Class A (*) | 10,978 | 776,694 | ||||||
5,046,457 | ||||||||
South Africa | 3.5% | ||||||||
Capitec Bank Holdings, Ltd. | 5,076 | 599,704 | ||||||
Clicks Group, Ltd. | 11,844 | 203,836 | ||||||
Mondi PLC | 45,141 | 1,189,368 | ||||||
The Foschini Group, Ltd. (*) | 11,868 | 132,224 | ||||||
Vodacom Group, Ltd. | 64,514 | 581,670 | ||||||
2,706,802 | ||||||||
South Korea | 12.0% | ||||||||
Coway Co., Ltd. | 13,225 | 924,297 | ||||||
Hyundai Mobis Co., Ltd. | 3,631 | 941,706 | ||||||
NAVER Corp. | 2,709 | 1,004,549 | ||||||
NCSoft Corp. | 924 | 672,542 | ||||||
Samsung Electronics Co., Ltd. | 39,907 | 2,860,348 | ||||||
Shinhan Financial Group Co., Ltd. | 30,718 | 1,106,349 | ||||||
SK Hynix, Inc. | 15,600 | 1,766,995 | ||||||
9,276,786 | ||||||||
Taiwan | 11.3% | ||||||||
CTBC Financial Holding Co., Ltd. | 1,917,000 | 1,558,813 | ||||||
Globalwafers Co., Ltd. | 42,000 | 1,386,505 | ||||||
Hon Hai Precision Industry Co., Ltd. | 292,136 | 1,174,311 | ||||||
Novatek Microelectronics Corp. | 55,000 | 985,016 | ||||||
Taiwan Semiconductor Manufacturing Co., Ltd. | 167,387 | 3,574,527 | ||||||
8,679,172 | ||||||||
Thailand | 1.3% | ||||||||
CP ALL Public Co., Ltd. (‡) | 314,900 | 589,516 | ||||||
The Siam Cement Public Co., Ltd. | 31,500 | 428,518 | ||||||
1,018,034 |
The accompanying notes are an integral part of these financial statements.
58 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard Emerging Markets Strategic Equity Portfolio (concluded) | ||||||||
United Kingdom | 3.8% | ||||||||
Anglo American PLC | 44,582 | $ | 1,776,544 | |||||
Unilever PLC | 19,674 | 1,151,505 | ||||||
2,928,049 | ||||||||
United States | 1.6% | ||||||||
Yum China Holdings, Inc. | 18,934 | 1,254,378 | ||||||
Total Common Stocks (Cost $67,796,592) | 76,902,748 | |||||||
Short-Term Investments | 1.1% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $839,365) | 839,365 | 839,365 | ||||||
Total Investments | 100.7% (Cost $68,635,957) | $ | 77,742,113 | ||||||
Liabilities in Excess of Cash and Other Assets | (0.7)% | (563,919 | ) | ||||||
Net Assets | 100.0% | $ | 77,178,194 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 59
The accompanying notes are an integral part of these financial statements.
60 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard Equity Franchise Portfolio (concluded) | ||||||||
CVS Health Corp. | 77,946 | $ | 6,503,814 | |||||
Dollar Tree, Inc. (*) | 30,841 | 3,068,680 | ||||||
H&R Block, Inc. | 271,190 | 6,367,541 | ||||||
Henry Schein, Inc. (*) | 13,510 | 1,002,307 | ||||||
International Game Technology PLC (*) | 219,307 | 5,254,596 | ||||||
McKesson Corp. | 33,463 | 6,399,464 | ||||||
MEDNAX, Inc. (*) | 88,755 | 2,675,963 | ||||||
Medtronic PLC | 25,789 | 3,201,189 | ||||||
Nielsen Holdings PLC | 253,182 | 6,246,000 | ||||||
Omnicom Group, Inc. | 70,957 | 5,675,850 | ||||||
Stericycle, Inc. (*) | 26,792 | 1,916,968 | ||||||
Tapestry, Inc. (*) | 44,123 | 1,918,468 | ||||||
58,528,052 | ||||||||
Total Common Stocks (Cost $81,528,654) | 100,750,650 | |||||||
Short-Term Investments | 2.5% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $2,626,710) | 2,626,710 | 2,626,710 | ||||||
Total Investments | 99.9% (Cost $84,155,364) | $ | 103,377,360 | ||||||
Cash and Other Assets in Excess of Liabilities | 0.1% | 62,334 | |||||||
Net Assets | 100.0% | $ | 103,439,694 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 61
The accompanying notes are an integral part of these financial statements.
62 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Global Equity Select Portfolio (continued) | ||||||||
India | 1.5% | ||||||||
HDFC Bank, Ltd. ADR (*) | 21,927 | $ | 1,603,302 | |||||
Japan | 4.3% | ||||||||
BayCurrent Consulting, Inc. | 6,100 | 2,191,949 | ||||||
Nintendo Co., Ltd. | 2,300 | 1,338,232 | ||||||
Shimano, Inc. | 4,300 | 1,019,631 | ||||||
4,549,812 | ||||||||
�� | ||||||||
Netherlands | 4.2% | ||||||||
NXP Semiconductors NV | 7,465 | 1,535,700 | ||||||
Wolters Kluwer NV | 29,080 | 2,922,760 | ||||||
4,458,460 | ||||||||
South Korea | 1.3% | ||||||||
LG Household & Health Care, Ltd. | 881 | 1,378,579 | ||||||
Spain | 0.9% | ||||||||
Industria de Diseno Textil SA | 28,955 | 1,020,282 | ||||||
Sweden | 2.4% | ||||||||
Assa Abloy AB, Class B | 26,950 | 811,974 | ||||||
Hexagon AB Class B | 114,900 | 1,703,394 | ||||||
2,515,368 | ||||||||
Switzerland | 4.5% | ||||||||
ABB, Ltd. | 44,394 | 1,506,932 | ||||||
Partners Group Holding AG | 1,073 | 1,626,095 | ||||||
The Swatch Group AG | 4,825 | 1,656,064 | ||||||
4,789,091 | ||||||||
Taiwan | 2.2% | ||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR | 19,652 | 2,361,384 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 63
Description | Shares | Fair Value | ||||||
Lazard Global Equity Select Portfolio (continued) | ||||||||
United Kingdom | 8.8% | ||||||||
Coca-Cola Europacific Partners PLC | 21,313 | $ | 1,264,287 | |||||
Diageo PLC | 43,990 | 2,108,155 | ||||||
Prudential PLC | 56,751 | 1,076,784 | ||||||
RELX PLC | 64,735 | 1,726,709 | ||||||
Rio Tinto PLC | 12,799 | 1,053,701 | ||||||
Unilever PLC | 36,925 | 2,159,705 | ||||||
9,389,341 | ||||||||
United States | 47.4% | ||||||||
Accenture PLC, Class A | 8,450 | 2,490,975 | ||||||
Alphabet, Inc., Class A (*) | 1,588 | 3,877,563 | ||||||
Aon PLC, Class A | 10,651 | 2,543,033 | ||||||
Boston Scientific Corp. (*) | 29,174 | 1,247,480 | ||||||
Dollar General Corp. | 8,174 | 1,768,772 | ||||||
Honeywell International, Inc. | 4,261 | 934,650 | ||||||
Intercontinental Exchange, Inc. | 17,101 | 2,029,889 | ||||||
IQVIA Holdings, Inc. (*) | 13,487 | 3,268,170 | ||||||
Johnson & Johnson | 12,935 | 2,130,912 | ||||||
Lowe’s Cos., Inc. | 8,915 | 1,729,243 | ||||||
McDonald’s Corp. | 6,835 | 1,578,817 | ||||||
Microsoft Corp. | 13,665 | 3,701,848 | ||||||
Motorola Solutions, Inc. | 9,268 | 2,009,766 | ||||||
PTC, Inc. (*) | 11,662 | 1,647,374 | ||||||
Rockwell Automation, Inc. | 4,544 | 1,299,675 | ||||||
S&P Global, Inc. | 4,530 | 1,859,338 | ||||||
Texas Instruments, Inc. | 9,665 | 1,858,579 | ||||||
The Charles Schwab Corp. | 22,616 | 1,646,671 | ||||||
The Coca-Cola Co. | 37,909 | 2,051,256 | ||||||
The Procter & Gamble Co. | 11,136 | 1,502,580 | ||||||
Thermo Fisher Scientific, Inc. | 6,669 | 3,364,310 | ||||||
TopBuild Corp. (*) | 3,392 | 670,870 | ||||||
Visa, Inc., Class A | 9,096 | 2,126,827 | ||||||
Warner Music Group Corp., Class A | 17,870 | 644,035 | ||||||
Zoetis, Inc. | 13,524 | 2,520,333 | ||||||
50,502,966 |
The accompanying notes are an integral part of these financial statements.
64 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Global Equity Select Portfolio (concluded) | ||||||||
Total Common Stocks (Cost $70,503,556) | 105,147,594 | |||||||
Preferred Stocks | 1.0% | ||||||||
Brazil | 1.0% | ||||||||
Banco Bradesco SA ADR (Cost $975,809) | 213,730 | 1,096,435 | ||||||
Short-Term Investments | 2.0% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $2,115,265) | 2,115,265 | 2,115,265 | ||||||
Total Investments | 101.7% (Cost $73,594,630) | $ | 108,359,294 | ||||||
Liabilities in Excess of Cash and Other Assets | (1.7)% | (1,775,468 | ) | ||||||
Net Assets | 100.0% | $ | 106,583,826 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 65
The accompanying notes are an integral part of these financial statements.
66 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Global Listed Infrastructure Portfolio (continued) | ||||||||
Spain | 8.2% | ||||||||
Ferrovial SA | 23,804,271 | $ | 698,785,650 | |||||
United Kingdom | 20.7% | ||||||||
National Grid PLC | 53,619,067 | 682,696,401 | ||||||
Pennon Group PLC (^) | 21,423,608 | 336,724,575 | ||||||
Severn Trent PLC | 10,512,794 | 363,634,282 | ||||||
United Utilities Group PLC | 27,714,883 | 373,759,317 | ||||||
1,756,814,575 | ||||||||
United States | 14.0% | ||||||||
Ameren Corp. | 2,060,500 | 164,922,420 | ||||||
Consolidated Edison, Inc. | 5,067,255 | 363,423,528 | ||||||
CSX Corp. | 12,930,933 | 414,824,331 | ||||||
Norfolk Southern Corp. | 289,219 | 76,761,615 | ||||||
Pinnacle West Capital Corp. | 2,013,000 | 165,005,610 | ||||||
1,184,937,504 | ||||||||
Total Common Stocks (Cost $6,810,996,401) | 7,463,059,028 | |||||||
Short-Term Investments | 10.1% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $855,339,114) | 855,339,114 | 855,339,114 | ||||||
Total Investments | 98.0% (Cost $7,666,335,515) (») | $ | 8,318,398,142 | ||||||
Cash and Other Assets in Excess of Liabilities | 2.0% | ||||||||
167,681,069 | ||||||||
Net Assets | 100.0% | $ | 8,486,079,211 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 67
Lazard Global Listed Infrastructure Portfolio (concluded)
Forward Currency Contracts open at June 30, 2021:
Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||
USD | 159,368,935 | AUD | 210,827,222 | BNP | 09/22/21 | $ | 1,205,369 | $ | — | ||||||||||||
USD | 127,206,865 | AUD | 168,234,120 | CIT | 09/22/21 | 996,843 | — | ||||||||||||||
USD | 132,255,444 | AUD | 174,975,780 | HSB | 09/22/21 | 987,796 | — | ||||||||||||||
USD | 80,104,247 | AUD | 105,964,727 | MSC | 09/22/21 | 609,014 | — | ||||||||||||||
USD | 28,586,991 | AUD | 38,009,814 | SCB | 09/22/21 | 71,851 | — | ||||||||||||||
USD | 126,005,216 | AUD | 166,616,264 | SCB | 09/22/21 | 1,008,916 | — | ||||||||||||||
USD | 138,886,615 | AUD | 183,700,548 | SSB | 09/22/21 | 1,073,607 | — | ||||||||||||||
USD | 6,427,506 | CAD | 7,936,858 | BNP | 09/22/21 | 24,955 | — | ||||||||||||||
USD | 16,625,021 | CAD | 20,528,991 | HSB | 09/22/21 | 64,575 | — | ||||||||||||||
USD | 13,417,620 | CAD | 16,568,294 | MSC | 09/22/21 | 52,212 | — | ||||||||||||||
USD | 13,433,458 | CAD | 16,590,656 | RBC | 09/22/21 | 50,011 | — | ||||||||||||||
USD | 20,478,148 | CAD | 25,288,670 | SCB | 09/22/21 | 78,137 | — | ||||||||||||||
USD | 377,741,395 | EUR | 311,045,214 | BNP | 09/22/21 | 8,303,662 | — | ||||||||||||||
USD | 491,207,558 | EUR | 404,418,865 | CAN | 09/22/21 | 10,867,138 | — | ||||||||||||||
USD | 434,766,537 | EUR | 357,965,120 | CIT | 09/22/21 | 9,600,623 | — | ||||||||||||||
USD | 422,448,860 | EUR | 347,834,528 | HSB | 09/22/21 | 9,315,355 | — | ||||||||||||||
USD | 416,801,536 | EUR | 343,204,717 | MEL | 09/22/21 | 9,166,997 | — | ||||||||||||||
USD | 440,659,192 | EUR | 362,801,007 | RBC | 09/22/21 | 9,749,550 | — | ||||||||||||||
USD | 866,796,780 | EUR | 713,736,078 | SSB | 09/22/21 | 19,071,026 | — | ||||||||||||||
USD | 421,334,885 | GBP | 302,563,560 | CAN | 09/22/21 | 2,722,324 | — | ||||||||||||||
USD | 398,040,406 | GBP | 285,808,948 | HSB | 09/22/21 | 2,608,729 | — | ||||||||||||||
USD | 246,215,847 | GBP | 176,771,258 | MSC | 09/22/21 | 1,643,536 | — | ||||||||||||||
USD | 381,219,719 | GBP | 273,732,397 | RBC | 09/22/21 | 2,496,584 | — | ||||||||||||||
USD | 320,159,611 | GBP | 229,862,497 | SSB | 09/22/21 | 2,132,786 | — | ||||||||||||||
USD | 90,073,804 | HKD | 699,287,435 | BNP | 09/24/21 | — | 4,972 | ||||||||||||||
USD | 87,664,647 | HKD | 680,580,106 | HSB | 09/24/21 | — | 4,342 | ||||||||||||||
USD | 38,424,095 | HKD | 298,311,611 | MSC | 09/24/21 | — | 2,942 | ||||||||||||||
USD | 29,905,066 | HKD | 232,160,503 | SCB | 09/24/21 | — | 711 | ||||||||||||||
USD | 81,222,170 | HKD | 630,588,624 | SSB | 09/24/21 | — | 7,161 | ||||||||||||||
Total gross unrealized appreciation/depreciation on Forward Currency Contracts | $ | 93,901,596 | $ | 20,128 |
The accompanying notes are an integral part of these financial statements.
68 Semi-Annual Report
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 69
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard Global Strategic Equity Portfolio (continued) | ||||||||
India | 1.5% | ||||||||
HDFC Bank, Ltd. ADR (*) | 3,524 | $ | 257,675 | |||||
Israel | 0.7% | ||||||||
CyberArk Software, Ltd. (*) | 932 | 121,412 | ||||||
Italy | 1.2% | ||||||||
Enel SpA | 21,453 | 199,326 | ||||||
Japan | 5.4% | ||||||||
BayCurrent Consulting, Inc. | 800 | 287,469 | ||||||
Digital Garage, Inc. | 3,200 | 143,938 | ||||||
Nintendo Co., Ltd. | 400 | 232,736 | ||||||
TechnoPro Holdings, Inc. | 6,300 | 149,109 | ||||||
Z Holdings Corp. | 21,600 | 108,307 | ||||||
921,559 | ||||||||
Netherlands | 1.4% | ||||||||
Koninklijke DSM NV | 1,321 | 246,618 | ||||||
Poland | 1.0% | ||||||||
InPost SA | 8,620 | 173,182 | ||||||
Portugal | 0.9% | ||||||||
Energias de Portugal SA | 29,604 | 157,033 | ||||||
South Korea | 1.2% | ||||||||
SK Hynix, Inc. | 1,760 | 199,353 | ||||||
Spain | 1.7% | ||||||||
Siemens Gamesa Renewable Energy SA (*) | 8,939 | 298,436 | ||||||
Switzerland | 2.9% | ||||||||
ABB, Ltd. | 6,977 | 236,831 | ||||||
Idorsia, Ltd. (*) | 3,155 | 86,767 | ||||||
Partners Group Holding AG | 113 | 171,248 | ||||||
494,846 |
The accompanying notes are an integral part of these financial statements.
70 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard Global Strategic Equity Portfolio (continued) | ||||||||
United Kingdom | 8.6% | ||||||||
Informa PLC (*) | 23,465 | $ | 163,110 | |||||
ITV PLC (*) | 168,253 | 292,815 | ||||||
Linde PLC (*) | 711 | 205,435 | ||||||
RELX PLC | 15,595 | 415,973 | ||||||
Rio Tinto PLC | 3,004 | 247,310 | ||||||
THG PLC | 19,398 | 163,661 | ||||||
1,488,304 | ||||||||
United States | 51.3% | ||||||||
Accenture PLC, Class A | 846 | 249,392 | ||||||
Adaptive Biotechnologies Corp. (*) | 1,952 | 79,759 | ||||||
Adobe, Inc. (*) | 678 | 397,064 | ||||||
Alphabet, Inc., Class A (*) | 297 | 725,212 | ||||||
American Express Co. | 2,158 | 356,566 | ||||||
Amphenol Corp., Class A | 3,504 | 239,709 | ||||||
Analog Devices, Inc. | 1,963 | 337,950 | ||||||
Aon PLC, Class A | 1,414 | 337,607 | ||||||
Applied Materials, Inc. | 2,166 | 308,438 | ||||||
Bank of America Corp. | 8,320 | 343,034 | ||||||
Danaher Corp. | 1,270 | 340,817 | ||||||
Dollar General Corp. | 1,334 | 288,664 | ||||||
Fidelity National Information Services, Inc. | 1,620 | 229,505 | ||||||
Intercontinental Exchange, Inc. | 3,658 | 434,205 | ||||||
Intuit, Inc. | 608 | 298,023 | ||||||
IQVIA Holdings, Inc. (*) | 2,133 | 516,869 | ||||||
Las Vegas Sands Corp. (*) | 3,609 | 190,158 | ||||||
Medtronic PLC | 1,986 | 246,522 | ||||||
MetroMile, Inc. (*) | 11,548 | 105,664 | ||||||
Microsoft Corp. | 2,882 | 780,734 | ||||||
S&P Global, Inc. | 1,073 | 440,413 | ||||||
Synopsys, Inc. (*) | 1,135 | 313,022 | ||||||
The Coca-Cola Co. | 4,202 | 227,370 | ||||||
Thermo Fisher Scientific, Inc. | 691 | 348,589 | ||||||
UnitedHealth Group, Inc. | 637 | 255,080 | ||||||
Visa, Inc., Class A | 1,098 | 256,734 | ||||||
Zoetis, Inc. | 1,038 | 193,442 | ||||||
8,840,542 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 71
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard Global Strategic Equity Portfolio (concluded) | ||||||||
Total Common Stocks (Cost $15,391,674) | $ | 16,904,745 | ||||||
Preferred Stocks | 1.4% | ||||||||
Germany | 1.4% | ||||||||
Volkswagen AG (Cost $254,476) | 1,016 | 254,788 | ||||||
Short-Term Investments | 0.9% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $149,179) | 149,179 | 149,179 | ||||||
Total Investments | 100.4% (Cost $15,795,329) | $ | 17,308,712 | ||||||
Liabilities in Excess of Cash and Other Assets | (0.4)% | (75,619 | ) | ||||||
Net Assets | 100.0% | $ | 17,233,093 |
The accompanying notes are an integral part of these financial statements.
72 Semi-Annual Report
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 73
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Equity Advantage Portfolio (continued) | ||||||||
Pandora A/S | 27 | $ | 3,638 | |||||
107,168 | ||||||||
Finland | 1.9% | ||||||||
Nordea Bank Abp | 2,484 | 27,639 | ||||||
Valmet Oyj | 645 | 28,143 | ||||||
55,782 | ||||||||
France | 10.3% | ||||||||
Air Liquide SA | 71 | 12,441 | ||||||
Amundi SA | 35 | 3,084 | ||||||
Cie de Saint-Gobain | 892 | 58,812 | ||||||
Cie Generale des Etablissements Michelin SCA | 240 | 38,305 | ||||||
Eiffage SA | 27 | 2,748 | ||||||
Electricite de France SA | 1,770 | 24,167 | ||||||
Hermes International | 17 | 24,787 | ||||||
L’Oreal SA | 86 | 38,348 | ||||||
La Francaise des Jeux SAEM | 443 | 26,051 | ||||||
Nexity SA | 53 | 2,651 | ||||||
Orange SA | 372 | 4,242 | ||||||
Sartorius Stedim Biotech | 41 | 19,396 | ||||||
Schneider Electric SE | 230 | 36,205 | ||||||
Societe Generale SA | 206 | 6,066 | ||||||
297,303 | ||||||||
Germany | 10.2% | ||||||||
Allianz SE | 295 | 73,554 | ||||||
Daimler AG | 766 | 68,427 | ||||||
Deutsche Bank AG (*) | 1,814 | 23,630 | ||||||
Deutsche Post AG | 1,097 | 74,641 | ||||||
Draegerwerk AG & Co. KGaA (Preference Shares) | 37 | 3,502 | ||||||
Hapag-Lloyd AG | 20 | 4,604 | ||||||
HelloFresh SE (*) | 31 | 3,014 | ||||||
Muenchener Rueckversicherungs AG | 30 | 8,218 | ||||||
SAP SE | 267 | 37,673 | ||||||
297,263 |
The accompanying notes are an integral part of these financial statements.
74 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Equity Advantage Portfolio (continued) | ||||||||
Hong Kong | 2.4% | ||||||||
CK Hutchison Holdings, Ltd. | 2,000 | $ | 15,584 | |||||
Hongkong Land Holdings, Ltd. | 2,200 | 10,480 | ||||||
Jardine Matheson Holdings, Ltd. | 100 | 6,397 | ||||||
Sun Hung Kai Properties, Ltd. | 1,500 | 22,353 | ||||||
WH Group, Ltd. | 18,000 | 16,182 | ||||||
70,996 | ||||||||
Israel | 0.3% | ||||||||
Bank Hapoalim BM (*) | 371 | 2,978 | ||||||
Bank Leumi Le-Israel BM (*) | 788 | 5,986 | ||||||
8,964 | ||||||||
Italy | 2.1% | ||||||||
Banco BPM SpA | 1,486 | 4,776 | ||||||
Buzzi Unicem SpA | 513 | 13,645 | ||||||
De’ Longhi SpA | 71 | 3,099 | ||||||
Enel SpA | 2,813 | 26,136 | ||||||
Reply SpA | 60 | 9,861 | ||||||
UniCredit SpA | 300 | 3,536 | ||||||
61,053 | ||||||||
Japan | 22.9% | ||||||||
AGC, Inc. | 500 | 20,988 | ||||||
Ajinomoto Co., Inc. | 300 | 7,787 | ||||||
Chugai Pharmaceutical Co., Ltd. | 100 | 3,939 | ||||||
Credit Saison Co., Ltd. | 400 | 4,853 | ||||||
Dai Nippon Printing Co., Ltd. | 500 | 10,567 | ||||||
Dai-ichi Life Holdings, Inc. | 2,100 | 38,434 | ||||||
Daikin Industries, Ltd. | 100 | 18,615 | ||||||
DCM Holdings Co., Ltd. | 900 | 8,569 | ||||||
EDION Corp. | 600 | 5,859 | ||||||
Electric Power Development Co., Ltd. | 1,000 | 14,270 | ||||||
ENEOS Holdings, Inc. | 1,100 | 4,605 | ||||||
GMO internet, Inc. | 300 | 8,172 | ||||||
Hitachi Zosen Corp. | 1,200 | 7,765 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 75
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Equity Advantage Portfolio (continued) | ||||||||
Honda Motor Co., Ltd. | 400 | $ | 12,824 | |||||
Iida Group Holdings Co., Ltd. | 100 | 2,573 | ||||||
ITOCHU Corp. | 500 | 14,372 | ||||||
Japan Petroleum Exploration Co., Ltd. | 200 | 3,600 | ||||||
Japan Post Bank Co., Ltd. | 900 | 7,539 | ||||||
Japan Tobacco, Inc. | 900 | 16,998 | ||||||
KDDI Corp. | 500 | 15,590 | ||||||
Kubota Corp. | 400 | 8,090 | ||||||
Kureha Corp. | 100 | 5,778 | ||||||
Macnica Fuji Electronics Holdings, Inc. | 100 | 2,403 | ||||||
Mitsubishi Electric Corp. | 900 | 13,040 | ||||||
Mitsubishi Estate Co., Ltd. | 200 | 3,233 | ||||||
Mizuho Financial Group, Inc. | 600 | 8,454 | ||||||
Murata Manufacturing Co., Ltd. | 300 | 22,893 | ||||||
Nintendo Co., Ltd. ADR | 431 | 31,260 | ||||||
Nippon Telegraph & Telephone Corp. | 200 | 5,210 | ||||||
Nishi-Nippon Financial Holdings, Inc. | 500 | 2,836 | ||||||
Nitto Denko Corp. | 100 | 7,458 | ||||||
Nitto Denko Corp. ADR | 321 | 11,944 | ||||||
Nomura Real Estate Holdings, Inc. | 500 | 12,680 | ||||||
NTT Data Corp. | 400 | 6,240 | ||||||
Okamura Corp. | 300 | 4,049 | ||||||
Ono Pharmaceutical Co., Ltd. | 300 | 6,659 | ||||||
ORIX Corp. | 1,000 | 16,827 | ||||||
Panasonic Corp. | 400 | 4,626 | ||||||
Sekisui House, Ltd. | 1,800 | 36,904 | ||||||
Seven & I Holdings Co., Ltd. | 300 | 14,301 | ||||||
Shimano, Inc. ADR | 409 | 9,734 | ||||||
Shimizu Corp. | 800 | 6,126 | ||||||
Shin-Etsu Chemical Co., Ltd. | 33 | 5,516 | ||||||
SKY Perfect JSAT Holdings, Inc. | 700 | 2,551 | ||||||
Softbank Corp. | 3,600 | 47,091 | ||||||
SoftBank Group Corp. ADR | 327 | 11,402 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 100 | 3,442 | ||||||
Sumitomo Rubber Industries, Ltd. | 400 | 5,518 | ||||||
Suntory Beverage & Food, Ltd. | 300 | 11,259 |
The accompanying notes are an integral part of these financial statements.
76 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Equity Advantage Portfolio (continued) | ||||||||
T&D Holdings, Inc. | 500 | $ | 6,497 | |||||
Taiheiyo Cement Corp. | 800 | 17,543 | ||||||
The 77 Bank, Ltd. | 200 | 2,185 | ||||||
The Okinawa Electric Power Co., Inc. | 400 | 4,972 | ||||||
Tohoku Electric Power Co., Inc. | 700 | 5,481 | ||||||
Tokyo Electron, Ltd. | 100 | 43,054 | ||||||
Toray Industries, Inc. | 2,300 | 15,250 | ||||||
Toyota Motor Corp. | 100 | 8,730 | ||||||
Yamaha Corp. | 100 | 5,425 | ||||||
664,580 | ||||||||
Malta | 0.4% | ||||||||
Kindred Group PLC | 801 | 12,559 | ||||||
Netherlands | 6.6% | ||||||||
ASML Holding NV | 100 | 68,850 | ||||||
Koninklijke Ahold Delhaize NV | 605 | 17,988 | ||||||
NN Group NV | 380 | 17,911 | ||||||
Royal Dutch Shell PLC, A Shares | 2,234 | 44,893 | ||||||
Signify NV | 80 | 5,061 | ||||||
Wolters Kluwer NV | 360 | 36,183 | ||||||
190,886 | ||||||||
Norway | 0.2% | ||||||||
Yara International ASA | 85 | 4,477 | ||||||
Singapore | 1.0% | ||||||||
BW LPG, Ltd. | 389 | 2,513 | ||||||
DBS Group Holdings, Ltd. | 700 | 15,534 | ||||||
Oversea-Chinese Banking Corp., Ltd. | 900 | 8,004 | ||||||
Singapore Airlines, Ltd. (*) | 700 | 2,529 | ||||||
28,580 | ||||||||
South Africa | 0.1% | ||||||||
Investec PLC | 673 | 2,687 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 77
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Equity Advantage Portfolio (continued) | ||||||||
Spain | 1.0% | ||||||||
Banco Bilbao Vizcaya Argentaria SA | 1,215 | $ | 7,559 | |||||
Iberdrola SA | 1,747 | 21,288 | ||||||
28,847 | ||||||||
Sweden | 3.6% | ||||||||
Electrolux AB, Series B | 197 | 5,465 | ||||||
Evolution AB | 89 | 14,070 | ||||||
Getinge AB, B Shares | 376 | 14,187 | ||||||
Husqvarna AB, B Shares | 1,389 | 18,465 | ||||||
Lundin Energy AB | 49 | 1,738 | ||||||
Nibe Industrier AB Class B | 681 | 7,168 | ||||||
Skandinaviska Enskilda Banken AB, Class A | 820 | 10,586 | ||||||
Swedish Match AB | 740 | 6,311 | ||||||
Telefonaktiebolaget LM Ericsson, B Shares | 1,335 | 16,788 | ||||||
Thule Group AB | 96 | 4,257 | ||||||
Volvo AB, Class B | 166 | 3,996 | ||||||
103,031 | ||||||||
Switzerland | 9.7% | ||||||||
Coca-Cola HBC AG | 262 | 9,475 | ||||||
Credit Suisse Group AG | 1,053 | 11,021 | ||||||
Geberit AG | 39 | 29,265 | ||||||
Logitech International SA | 138 | 16,725 | ||||||
Lonza Group AG | 16 | 11,342 | ||||||
Nestle SA | 40 | 4,982 | ||||||
Novartis AG | 375 | 34,179 | ||||||
Partners Group Holding AG | 9 | 13,639 | ||||||
Roche Holding AG | 247 | 93,087 | ||||||
Sonova Holding AG | 109 | 41,017 | ||||||
UBS Group AG | 1,062 | 16,261 | ||||||
280,993 | ||||||||
United Kingdom | 12.9% | ||||||||
AstraZeneca PLC | 54 | 6,480 | ||||||
Barclays PLC | 12,154 | 28,826 | ||||||
British American Tobacco PLC | 370 | 14,423 |
The accompanying notes are an integral part of these financial statements.
78 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Equity Advantage Portfolio (concluded) | ||||||||
Computacenter PLC | 167 | $ | 5,945 | |||||
Dunelm Group PLC | 227 | 4,459 | ||||||
GlaxoSmithKline PLC | 1,015 | 19,939 | ||||||
Halfords Group PLC (*) | 585 | 3,496 | ||||||
IMI PLC | 142 | 3,379 | ||||||
Imperial Brands PLC | 1,866 | 40,211 | ||||||
Natwest Group PLC | 14,411 | 40,493 | ||||||
Next PLC (*) | 63 | 6,857 | ||||||
RELX PLC | 153 | 4,065 | ||||||
Rio Tinto PLC | 604 | 49,725 | ||||||
Rio Tinto, Ltd. | 129 | 12,253 | ||||||
Standard Chartered PLC | 5,578 | 35,540 | ||||||
Unilever PLC | 1,207 | 70,645 | ||||||
Vodafone Group PLC | 16,371 | 27,535 | ||||||
374,271 | ||||||||
United States | 2.0% | ||||||||
ICON PLC (*) | 104 | 21,498 | ||||||
Stellantis NV | 1,811 | 35,640 | ||||||
57,138 | ||||||||
Total Common Stocks (Cost $2,478,295) | 2,913,364 | |||||||
Short-Term Investments | 0.7% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $21,128) | 21,128 | 21,128 | ||||||
Total Investments | 101.2% (Cost $2,499,423) | $ | 2,934,492 | ||||||
Liabilities in Excess of Cash and Other Assets | (1.2)% | (33,474 | ) | ||||||
Net Assets | 100.0% | $ | 2,901,018 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 79
The accompanying notes are an integral part of these financial statements.
80 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard International Equity Concentrated Portfolio (continued) | ||||||||
Luxembourg | 2.9% | ||||||||
ArcelorMittal SA | 2,255 | $ | 69,224 | |||||
Mexico | 6.7% | ||||||||
Arca Continental SAB de CV | 27,096 | 157,161 | ||||||
Russia | 1.7% | ||||||||
Fix Price Group, Ltd. GDR | 4,564 | 39,937 | ||||||
South Korea | 5.4% | ||||||||
Samsung Electronics Co., Ltd. | 1,779 | 127,511 | ||||||
United Kingdom | 11.7% | ||||||||
Anglo American PLC | 1,659 | 66,109 | ||||||
Coca-Cola Europacific Partners PLC | 893 | 52,973 | ||||||
Prudential PLC | 3,258 | 61,817 | ||||||
RELX PLC | 3,617 | 96,091 | ||||||
276,990 | ||||||||
United States | 6.1% | ||||||||
Aon PLC, Class A | 361 | 86,192 | ||||||
Medtronic PLC | 461 | 57,224 | ||||||
143,416 | ||||||||
Total Common Stocks (Cost $1,822,714) | 2,085,046 | |||||||
Preferred Stocks | 6.8% | ||||||||
Brazil | 3.0% | ||||||||
Banco Bradesco SA ADR | 13,906 | 71,338 | ||||||
Germany | 3.8% | ||||||||
Volkswagen AG | 354 | 88,774 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 81
Description | Shares | Fair Value | ||||||
Lazard International Equity Concentrated Portfolio (concluded) | ||||||||
Total Preferred Stocks (Cost $112,423) | $ | 160,112 | ||||||
Short-Term Investments | 4.8% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $114,684) | 114,684 | 114,684 | ||||||
Total Investments | 99.8% (Cost $2,049,821) | $ | 2,359,842 | ||||||
Cash and Other Assets in Excess of Liabilities | 0.2% | 4,870 | |||||||
Net Assets | 100.0% | $ | 2,364,712 |
The accompanying notes are an integral part of these financial statements.
82 Semi-Annual Report
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 83
Description | Shares | Fair Value | ||||||
Lazard International Equity Portfolio (continued) | ||||||||
Continental AG (*) | 276,506 | $ | 40,661,067 | |||||
Infineon Technologies AG | 803,207 | 32,209,296 | ||||||
Merck KGaA | 214,311 | 41,141,262 | ||||||
MTU Aero Engines AG | 212,136 | 52,560,954 | ||||||
ProSiebenSat.1 Media SE | 1,417,249 | 28,197,178 | ||||||
Vonovia SE | 418,488 | 27,080,737 | ||||||
249,361,851 | ||||||||
Hong Kong | 0.9% | ||||||||
ESR Cayman, Ltd. (*) | 7,886,000 | 26,611,677 | ||||||
India | 0.9% | ||||||||
Reliance Industries, Ltd. | 882,841 | 25,106,588 | ||||||
Ireland | 1.3% | ||||||||
Ryanair Holdings PLC Sponsored ADR (*) | 348,541 | 37,715,622 | ||||||
Israel | 1.2% | ||||||||
Bank Leumi Le-Israel BM (*) | 4,517,795 | 34,319,655 | ||||||
Italy | 2.0% | ||||||||
Enel SpA | 5,917,175 | 54,978,183 | ||||||
Japan | 16.4% | ||||||||
Asics Corp. | 867,800 | 21,951,585 | ||||||
Daikin Industries, Ltd. | 146,500 | 27,271,116 | ||||||
Daiwa House Industry Co., Ltd. | 1,331,681 | 39,962,090 | ||||||
Fujitsu, Ltd. | 220,778 | 41,352,624 | ||||||
Hitachi, Ltd. | 1,550,500 | 88,736,432 | ||||||
Makita Corp. | 797,500 | 37,532,468 | ||||||
Matsumotokiyoshi Holdings Co., Ltd. | 657,100 | 29,003,647 | ||||||
Nexon Co., Ltd. | 1,117,482 | 24,912,853 | ||||||
Ryohin Keikaku Co., Ltd. | 1,376,500 | 28,746,234 | ||||||
Shimano, Inc. | 125,400 | 29,735,279 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 1,022,000 | 35,171,861 | ||||||
Suzuki Motor Corp. | 742,300 | 31,396,862 |
The accompanying notes are an integral part of these financial statements.
84 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard International Equity Portfolio (continued) | ||||||||
Yamaha Corp. | 448,200 | $ | 24,316,564 | |||||
460,089,615 | ||||||||
Mexico | 0.8% | ||||||||
Arca Continental SAB de CV | 3,756,012 | 21,785,397 | ||||||
Netherlands | 5.1% | ||||||||
Akzo Nobel NV | 378,272 | 46,745,217 | ||||||
JDE Peet’s NV (*) | 434,891 | 15,780,796 | ||||||
Koninklijke DSM NV | 236,461 | 44,144,966 | ||||||
Wolters Kluwer NV | 367,894 | 36,976,136 | ||||||
143,647,115 | ||||||||
Norway | 2.4% | ||||||||
Equinor ASA | 1,544,405 | 32,688,984 | ||||||
Telenor ASA | 1,971,899 | 33,273,146 | ||||||
65,962,130 | ||||||||
Portugal | 0.9% | ||||||||
Galp Energia SGPS SA | 2,287,118 | 24,885,468 | ||||||
Singapore | 1.2% | ||||||||
DBS Group Holdings, Ltd. | 1,478,820 | 32,816,450 | ||||||
South Korea | 1.4% | ||||||||
Samsung Electronics Co., Ltd. | 543,671 | 38,967,806 | ||||||
Spain | 3.0% | ||||||||
Banco Santander SA | 10,847,647 | 41,358,580 | ||||||
Industria de Diseno Textil SA | 1,204,622 | 42,447,035 | ||||||
83,805,615 | ||||||||
Sweden | 1.3% | ||||||||
Sandvik AB | 1,398,869 | 35,738,531 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 85
Description | Shares | Fair Value | ||||||
Lazard International Equity Portfolio (continued) | ||||||||
Switzerland | 3.6% | ||||||||
ABB, Ltd. | 1,599,256 | $ | 54,285,927 | |||||
Novartis AG | 527,446 | 48,073,956 | ||||||
102,359,883 | ||||||||
United Kingdom | 10.9% | ||||||||
3i Group PLC | 1,602,312 | 26,044,527 | ||||||
Anglo American PLC | 966,768 | 38,524,635 | ||||||
Barclays PLC | 13,953,266 | 33,093,342 | ||||||
Informa PLC (*) | 1,256,521 | 8,734,344 | ||||||
Prudential PLC | 2,100,832 | 39,860,854 | ||||||
RELX PLC | 2,894,380 | 76,893,615 | ||||||
Tesco PLC | 12,451,493 | 38,437,224 | ||||||
Unilever PLC | 780,740 | 45,664,672 | ||||||
307,253,213 | ||||||||
United States | 6.4% | ||||||||
Aon PLC, Class A | 222,372 | 53,093,539 | ||||||
Ferguson PLC | 329,848 | 45,914,478 | ||||||
Medtronic PLC | 658,193 | 81,701,497 | ||||||
180,709,514 | ||||||||
Total Common Stocks (Cost $2,110,776,040) | 2,655,022,118 | |||||||
Preferred Stocks | 2.1% | ||||||||
Germany | 2.1% | ||||||||
Volkswagen AG (Cost $40,074,557) | 238,330 | 59,767,330 | ||||||
Short-Term Investments | 3.2% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $89,705,320) | 89,705,320 | 89,705,320 |
The accompanying notes are an integral part of these financial statements.
86 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard International Equity Portfolio (concluded) | ||||||||
Total Investments | 99.8% (Cost $2,240,555,917) | $ | 2,804,494,768 | ||||||
Cash and Other Assets in Excess of Liabilities | 0.2% | 5,292,261 | |||||||
Net Assets | 100.0% | $ | 2,809,787,029 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 87
The accompanying notes are an integral part of these financial statements.
88 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard International Equity Select Portfolio (continued) | ||||||||
Sanofi | 19,734 | $ | 2,067,840 | |||||
Vivendi SE | 42,899 | 1,441,328 | ||||||
9,895,781 | ||||||||
Germany | 3.9% | ||||||||
Adidas AG | 2,536 | 944,328 | ||||||
Continental AG (*) | 6,293 | 925,405 | ||||||
Knorr-Bremse AG | 4,477 | 515,230 | ||||||
Merck KGaA | 5,405 | 1,037,597 | ||||||
3,422,560 | ||||||||
Hong Kong | 1.7% | ||||||||
ESR Cayman, Ltd. (*) | 205,600 | 693,807 | ||||||
Sands China, Ltd. (*) | 198,800 | 837,294 | ||||||
1,531,101 | ||||||||
India | 3.1% | ||||||||
ICICI Bank, Ltd. Sponsored ADR (*) | 90,385 | 1,545,584 | ||||||
Reliance Industries, Ltd. | 41,444 | 1,178,601 | ||||||
2,724,185 | ||||||||
Indonesia | 1.5% | ||||||||
PT Bank Mandiri (Persero) Tbk | 1,988,800 | 807,615 | ||||||
PT Telkom Indonesia (Persero) Tbk Sponsored ADR | 23,398 | 507,035 | ||||||
1,314,650 | ||||||||
Ireland | 1.0% | ||||||||
Ryanair Holdings PLC Sponsored ADR (*) | 8,407 | 909,721 | ||||||
Italy | 1.7% | ||||||||
Enel SpA | 157,914 | 1,467,225 | ||||||
Japan | 11.2% | ||||||||
Daiwa House Industry Co., Ltd. | 27,200 | 816,238 | ||||||
Fujitsu, Ltd. | 5,400 | 1,011,442 | ||||||
Hitachi, Ltd. | 32,800 | 1,877,172 | ||||||
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 89
Description | Shares | Fair Value | ||||||
Lazard International Equity Select Portfolio (continued) | ||||||||
Makita Corp. | 24,800 | $ | 1,167,154 | |||||
Nintendo Co., Ltd. | 1,800 | 1,047,312 | ||||||
Ryohin Keikaku Co., Ltd. | 44,100 | 920,966 | ||||||
Shimano, Inc. | 5,200 | 1,233,042 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 29,976 | 1,031,616 | ||||||
Suzuki Motor Corp. | 15,800 | 668,288 | ||||||
9,773,230 | ||||||||
Mexico | 1.5% | ||||||||
Grupo Financiero Banorte SAB de CV, Class O | 204,200 | 1,318,992 | ||||||
Netherlands | 4.3% | ||||||||
Akzo Nobel NV | 11,066 | 1,367,488 | ||||||
Koninklijke DSM NV | 7,064 | 1,318,780 | ||||||
Wolters Kluwer NV | 10,744 | 1,079,854 | ||||||
3,766,122 | ||||||||
Norway | 2.0% | ||||||||
Equinor ASA | 40,464 | 856,464 | ||||||
Telenor ASA | 55,682 | 939,559 | ||||||
1,796,023 | ||||||||
Singapore | 1.1% | ||||||||
DBS Group Holdings, Ltd. | 42,300 | 938,678 | ||||||
South Africa | 0.9% | ||||||||
Mr Price Group, Ltd. | 51,135 | 753,503 | ||||||
South Korea | 5.0% | ||||||||
KB Financial Group, Inc. | 13,783 | 681,862 | ||||||
LG Household & Health Care, Ltd. | 635 | 993,641 | ||||||
Samsung Electronics Co., Ltd. | 37,595 | 2,694,635 | ||||||
4,370,138 | ||||||||
Spain | 1.3% | ||||||||
Industria de Diseno Textil SA | 31,494 | 1,109,748 |
The accompanying notes are an integral part of these financial statements.
90 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard International Equity Select Portfolio (continued) | ||||||||
Sweden | 2.5% | ||||||||
Hexagon AB, B Shares | 71,491 | $ | 1,059,855 | |||||
Sandvik AB | 43,332 | 1,107,053 | ||||||
2,166,908 | ||||||||
Switzerland | 5.2% | ||||||||
ABB, Ltd. | 64,743 | 2,197,668 | ||||||
Cie Financiere Richemont SA, Class A | 6,060 | 733,697 | ||||||
Novartis AG | 18,160 | 1,655,189 | ||||||
4,586,554 | ||||||||
United Kingdom | 10.5% | ||||||||
Allfunds Group PLC | 25,071 | 436,442 | ||||||
Anglo American PLC | 20,036 | 798,412 | ||||||
Barclays PLC | 339,584 | 805,401 | ||||||
BP PLC | 373,094 | 1,630,608 | ||||||
Prudential PLC | 56,488 | 1,071,794 | ||||||
RELX PLC | 78,603 | 2,088,208 | ||||||
Tesco PLC | 330,737 | 1,020,971 | ||||||
Unilever PLC | 22,034 | 1,288,746 | ||||||
9,140,582 | ||||||||
United States | 7.1% | ||||||||
Accenture PLC, Class A | 4,947 | 1,458,326 | ||||||
Aon PLC, Class A | 7,458 | 1,780,672 | ||||||
Ferguson PLC | 8,618 | 1,199,616 | ||||||
Medtronic PLC | 13,935 | 1,729,752 | ||||||
6,168,366 | ||||||||
Total Common Stocks (Cost $66,838,202) | 83,210,731 | |||||||
Preferred Stocks | 3.3% | ||||||||
Brazil | 1.5% | ||||||||
Banco Bradesco SA ADR | 250,520 | 1,285,167 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 91
Description | Shares | Fair Value | ||||||
Lazard International Equity Select Portfolio (concluded) | ||||||||
Germany | 1.8% | ||||||||
Volkswagen AG | 6,509 | $ | 1,632,298 | |||||
Total Preferred Stocks (Cost $2,239,577) | 2,917,465 | |||||||
Short-Term Investments | 1.3% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $1,112,612) | 1,112,612 | $ | 1,112,612 | |||||
Total Investments | 99.8% (Cost $70,190,391) | $ | 87,240,808 | ||||||
Cash and Other Assets in Excess of Liabilities | 0.2% | 178,049 | |||||||
Net Assets | 100.0% | $ | 87,418,857 |
The accompanying notes are an integral part of these financial statements.
92 Semi-Annual Report
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 93
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Equity Value Portfolio (continued) | ||||||||
Mexico | 6.2% | ||||||||
Arca Continental SAB de CV | 15,537 | $ | 90,117 | |||||
Fomento Economico Mexicano SAB de CV Sponsored ADR | 1,250 | 105,637 | ||||||
195,754 | ||||||||
Netherlands | 4.1% | ||||||||
Akzo Nobel NV | 1,058 | 130,743 | ||||||
South Korea | 6.8% | ||||||||
Kangwon Land, Inc. (*) | 4,283 | 102,320 | ||||||
SK Telecom Co., Ltd. | 398 | 113,123 | ||||||
215,443 | ||||||||
Spain | 1.9% | ||||||||
Banco Santander SA | 16,010 | 61,041 | ||||||
Switzerland | 9.6% | ||||||||
Coca-Cola HBC AG | 3,595 | 130,015 | ||||||
Glencore PLC | 11,555 | 49,483 | ||||||
The Swatch Group AG | 364 | 124,934 | ||||||
304,432 | ||||||||
United Kingdom | 10.1% | ||||||||
Barclays PLC | 43,930 | 104,190 | ||||||
BP PLC | 27,748 | 121,273 | ||||||
Prudential PLC | 5,085 | 96,482 | ||||||
321,945 | ||||||||
United States | 4.0% | ||||||||
Stellantis NV | 6,501 | 127,534 | ||||||
Total Common Stocks (Cost $2,795,608) | 3,206,741 |
The accompanying notes are an integral part of these financial statements.
94 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Equity Value Portfolio (concluded) | ||||||||
Short-Term Investments | 0.6% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $20,496) | 20,496 | $ | 20,496 | |||||
Total Investments | 101.3% (Cost $2,816,104) | $ | 3,227,237 | ||||||
Liabilities in Excess of Cash and Other Assets | (1.3)% | (40,331 | ) | ||||||
Net Assets l 100.0% | $ | 3,186,906 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 95
The accompanying notes are an integral part of these financial statements.
96 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Quality Growth Portfolio (continued) | ||||||||
India | 3.3% | ||||||||
HDFC Bank, Ltd. ADR (*) | 13,297 | $ | 972,277 | |||||
Israel | 1.8% | ||||||||
Check Point Software Technologies, Ltd. (*) | 4,561 | 529,669 | ||||||
Japan | 8.6% | ||||||||
Pigeon Corp. | 9,000 | 252,661 | ||||||
Shimano, Inc. | 1,600 | 379,398 | ||||||
SMS Co., Ltd. | 16,800 | 503,067 | ||||||
Toei Animation Co., Ltd. | 8,100 | 960,482 | ||||||
Workman Co., Ltd. | 5,600 | 392,236 | ||||||
2,487,844 | ||||||||
Netherlands | 6.5% | ||||||||
ASML Holding NV | 1,935 | 1,332,250 | ||||||
Wolters Kluwer NV | 5,408 | 543,545 | ||||||
1,875,795 | ||||||||
Norway | 1.4% | ||||||||
Gjensidige Forsikring ASA | 19,057 | 420,150 | ||||||
South Africa | 1.9% | ||||||||
Clicks Group, Ltd. | 32,544 | 560,084 | ||||||
South Korea | 2.1% | ||||||||
LG Household & Health Care, Ltd. | 395 | 618,092 | ||||||
Spain | 1.2% | ||||||||
Industria de Diseno Textil SA | 10,062 | 354,553 | ||||||
Sweden | 5.1% | ||||||||
Assa Abloy AB, Class B | 25,252 | 760,815 | ||||||
Hexagon AB, B Shares | 48,306 | 716,137 | ||||||
1,476,952 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 97
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Quality Growth Portfolio (continued) | ||||||||
Switzerland | 3.8% | ||||||||
Partners Group Holding AG | 731 | $ | 1,107,806 | |||||
Taiwan | 3.8% | ||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR | 9,200 | 1,105,472 | ||||||
United Kingdom | 15.6% | ||||||||
Dechra Pharmaceuticals PLC | 8,992 | 544,003 | ||||||
Diageo PLC | 15,373 | 736,728 | ||||||
Intertek Group PLC | 5,861 | 448,592 | ||||||
London Stock Exchange Group PLC | 5,663 | 624,617 | ||||||
Prudential PLC | 27,812 | 527,700 | ||||||
RELX PLC | 31,982 | 853,072 | ||||||
Unilever PLC | 13,784 | 806,768 | ||||||
4,541,480 | ||||||||
United States | 2.8% | ||||||||
Aon PLC, Class A | 3,390 | 809,396 | ||||||
Total Common Stocks (Cost $23,767,117) | 28,041,196 | |||||||
Preferred Stocks | 2.1% | ||||||||
Brazil | 2.1% | ||||||||
Banco Bradesco SA ADR (Cost $506,245) | 117,727 | 603,939 | ||||||
Short-Term Investments | 1.6% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $474,055) | 474,055 | 474,055 |
The accompanying notes are an integral part of these financial statements.
98 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Quality Growth Portfolio (concluded) | ||||||||
Total Investments | 100.1% (Cost $24,747,417) | $ | 29,119,190 | ||||||
Liabilities in Excess of Cash and Other Assets | (0.1)% | (40,137 | ) | ||||||
Net Assets | 100.0% | $ | 29,079,053 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 99
The accompanying notes are an integral part of these financial statements.
100 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Small Cap Equity Portfolio (continued) | ||||||||
Germany | 13.6% | ||||||||
Aroundtown SA | 62,407 | $ | 486,218 | |||||
Bike24 Holding AG | 16,634 | 381,260 | ||||||
Cherry AG | 9,632 | 361,822 | ||||||
CompuGroup Medical SE & Co. KgaA | 3,840 | 300,948 | ||||||
Covestro AG | 9,513 | 614,485 | ||||||
Dermapharm Holding SE | 9,246 | 737,231 | ||||||
FlatexDEGIRO AG (*) | 6,933 | 933,195 | ||||||
Friedrich Vorwerk Group SE | 5,190 | 297,219 | ||||||
JOST Werke AG | 9,367 | 558,916 | ||||||
LEG Immobilien SE | 2,848 | 410,331 | ||||||
PATRIZIA AG | 4,868 | 126,985 | ||||||
Teamviewer AG (*) | 8,438 | 317,867 | ||||||
5,526,477 | ||||||||
Greece | 1.2% | ||||||||
JUMBO SA | 15,985 | 269,094 | ||||||
Terna Energy SA | 16,255 | 229,382 | ||||||
498,476 | ||||||||
Hong Kong | 0.9% | ||||||||
ESR Cayman, Ltd. (*) | 104,200 | 351,628 | ||||||
Ireland | 1.0% | ||||||||
Dalata Hotel Group PLC (*) | 88,764 | 403,752 | ||||||
Israel | 1.0% | ||||||||
Strauss Group, Ltd. | 13,910 | 389,407 | ||||||
Italy | 3.6% | ||||||||
Banca Generali SpA (*) | 10,515 | 449,698 | ||||||
Italgas SpA | 66,134 | 432,906 | ||||||
Tinexta Spa | 14,491 | 565,841 | ||||||
1,448,445 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 101
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Small Cap Equity Portfolio (continued) | ||||||||
Japan | 23.5% | ||||||||
Ariake Japan Co., Ltd. | 7,300 | $ | 451,226 | |||||
ARTERIA Networks Corp. | 24,300 | 394,915 | ||||||
Bell System24 Holdings, Inc. | 25,700 | 404,224 | ||||||
Broadleaf Co., Ltd. | 45,200 | 210,278 | ||||||
Daiseki Co., Ltd. | 11,800 | 529,853 | ||||||
Digital Garage, Inc. | 8,800 | 395,829 | ||||||
DTS Corp. | 16,100 | 383,207 | ||||||
GMO internet, Inc. | 11,600 | 316,000 | ||||||
Industrial & Infrastructure Fund Investment Corp. REIT | 215 | 410,145 | ||||||
JAFCO Group Co., ltd. | 7,900 | 491,262 | ||||||
Matsumotokiyoshi Holdings Co., Ltd. | 10,800 | 476,700 | ||||||
Nippon Shinyaku Co., Ltd. | 5,400 | 428,134 | ||||||
Open House Co., Ltd. | 9,700 | 455,963 | ||||||
Pigeon Corp. | 12,900 | 362,148 | ||||||
Relo Group, Inc. | 18,300 | 418,185 | ||||||
Roland Corp. | 11,300 | 572,472 | ||||||
Sanwa Holdings Corp. | 28,500 | 349,731 | ||||||
Seria Co., Ltd. | 11,300 | 417,187 | ||||||
TechnoPro Holdings, Inc. | 18,735 | 443,423 | ||||||
Trend Micro, Inc. | 7,600 | 398,216 | ||||||
Trusco Nakayama Corp. | 14,800 | 376,679 | ||||||
USS Co., Ltd. | 22,200 | 387,103 | ||||||
Zenkoku Hosho Co., Ltd. | 10,742 | 461,571 | ||||||
9,534,451 | ||||||||
Jersey | 1.6% | ||||||||
JTC PLC | 77,585 | 659,510 | ||||||
Luxembourg | 1.0% | ||||||||
Stabilus SA | 5,249 | 426,621 | ||||||
Netherlands | 6.9% | ||||||||
Aalberts NV | 9,854 | 529,680 | ||||||
Arcadis NV | 16,013 | 655,822 | ||||||
ASM International NV | 3,055 | 1,004,490 |
The accompanying notes are an integral part of these financial statements.
102 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Small Cap Equity Portfolio (continued) | ||||||||
Meltwater Holding BV | 40,294 | $ | 215,076 | |||||
Van Lanschot Kempen NV | 15,559 | 395,662 | ||||||
2,800,730 | ||||||||
New Zealand | 1.1% | ||||||||
Freightways, Ltd. | 49,938 | 439,819 | ||||||
Norway | 0.9% | ||||||||
Crayon Group Holding ASA (*) | 24,197 | 353,896 | ||||||
Russia | 0.2% | ||||||||
Fix Price Group, Ltd. GDR | 10,314 | 90,252 | ||||||
Singapore | 1.0% | ||||||||
XP Power, Ltd. | 5,103 | 393,903 | ||||||
Spain | 1.5% | ||||||||
Bankinter SA | 93,901 | 471,560 | ||||||
Linea Directa Aseguradora SA Cia de Seguros y Reaseguros (*) | 57,457 | 120,403 | ||||||
591,963 | ||||||||
Sweden | 3.5% | ||||||||
Getinge AB, B Shares | 11,988 | 452,314 | ||||||
Lindab International AB | 16,946 | 395,576 | ||||||
Nordnet AB publ | 10,571 | 178,478 | ||||||
Stillfront Group AB (*) | 40,859 | 392,807 | ||||||
1,419,175 | ||||||||
Switzerland | 1.2% | ||||||||
Swissquote Group Holding SA | 3,166 | 478,604 | ||||||
United Kingdom | 16.4% | ||||||||
Ascential PLC (*) | 47,826 | 275,600 | ||||||
Auto Trader Group PLC (*) | 54,096 | 474,410 | ||||||
Bellway PLC | 7,513 | 337,328 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 103
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard International Small Cap Equity Portfolio (concluded) | ||||||||
Britvic PLC | 29,275 | $ | 379,818 | |||||
Bytes Technology Group PLC | 42,087 | 269,763 | ||||||
Dechra Pharmaceuticals PLC | 5,239 | 316,952 | ||||||
Electrocomponents PLC | 34,047 | 485,326 | ||||||
GB Group PLC | 17,188 | 196,309 | ||||||
ITV PLC (*) | 222,177 | 386,661 | ||||||
JD Sports Fashion PLC | 38,440 | 489,488 | ||||||
Jet2 PLC (*) | 22,961 | 376,160 | ||||||
Pennon Group PLC | 35,549 | 558,740 | ||||||
Genuit Group PLC | 66,165 | 560,771 | ||||||
Smart Metering Systems PLC | 33,842 | 407,113 | ||||||
Synthomer PLC | 97,407 | 662,547 | ||||||
The Weir Group PLC (*) | 18,073 | 463,495 | ||||||
6,640,481 | ||||||||
United States | 0.9% | ||||||||
Nexteer Automotive Group, Ltd. | 274,000 | 381,129 | ||||||
Total Common Stocks (Cost $29,613,470) | 39,733,378 | |||||||
Short-Term Investments | 1.9% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $770,781) | 770,781 | 770,781 | ||||||
Total Investments | 99.8% (Cost $30,384,251) | $ | 40,504,159 | ||||||
Cash and Other Assets in Excess of Liabilities | 0.2% | 80,776 | |||||||
Net Assets | 100.0% | $ | 40,584,935 |
The accompanying notes are an integral part of these financial statements.
104 Semi-Annual Report
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 105
Description | Shares | Fair Value | ||||||
Lazard International Strategic Equity Portfolio (continued) | ||||||||
Germany | 2.1% | ||||||||
Infineon Technologies AG | 1,722,834 | $ | 69,087,135 | |||||
Vonovia SE | 1,030,374 | 66,676,433 | ||||||
135,763,568 | ||||||||
Hong Kong | 2.8% | ||||||||
ESR Cayman, Ltd. (*) | 29,220,400 | 98,605,612 | ||||||
Sands China, Ltd. (*) | 19,929,600 | 83,938,368 | ||||||
182,543,980 | ||||||||
India | 1.1% | ||||||||
Housing Development Finance Corp., Ltd. | 2,063,552 | 68,848,333 | ||||||
Ireland | 1.2% | ||||||||
Ryanair Holdings PLC Sponsored ADR (*) | 700,000 | 75,747,000 | ||||||
Israel | 1.8% | ||||||||
Bank Leumi Le-Israel BM (*) | 15,539,792 | 118,048,805 | ||||||
Italy | 1.9% | ||||||||
Enel SpA | 13,593,316 | 126,299,428 | ||||||
Japan | 13.5% | ||||||||
BayCurrent Consulting, Inc. | 251,800 | 90,480,796 | ||||||
Daikin Industries, Ltd. | 726,000 | 135,145,599 | ||||||
FANUC Corp. | 335,400 | 80,848,279 | ||||||
Kobe Bussan Co., Ltd. | 1,057,700 | 33,312,718 | ||||||
Makita Corp. | 3,292,891 | 154,972,196 | ||||||
Nexon Co., Ltd. | 3,014,635 | 67,207,487 | ||||||
Nintendo Co., Ltd. | 158,550 | 92,250,733 | ||||||
Shimano, Inc. | 425,000 | 100,777,460 | ||||||
Suzuki Motor Corp. | 1,850,072 | 78,251,993 | ||||||
Yamaha Corp. | 911,572 | 49,456,268 | ||||||
882,703,529 |
The accompanying notes are an integral part of these financial statements.
106 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard International Strategic Equity Portfolio (continued) | ||||||||
Mexico | 1.0% | ||||||||
Arca Continental SAB de CV | 11,808,700 | $ | 68,492,119 | |||||
Netherlands | 2.0% | ||||||||
Akzo Nobel NV | 597,471 | 73,832,881 | ||||||
JDE Peet’s NV (*) | 1,507,297 | 54,694,960 | ||||||
128,527,841 | ||||||||
Poland | 0.6% | ||||||||
InPost SA | 2,042,272 | 41,030,752 | ||||||
Portugal | 0.7% | ||||||||
Energias de Portugal SA | 8,383,287 | 44,468,614 | ||||||
South Korea | 1.0% | ||||||||
NHN KCP Corp. (*) | 657,905 | 33,946,243 | ||||||
SK Hynix, Inc. | 301,286 | 34,126,330 | ||||||
68,072,573 | ||||||||
Spain | 4.9% | ||||||||
Bankinter SA | 12,002,661 | 60,276,045 | ||||||
Industria de Diseno Textil SA | 3,777,328 | 133,100,983 | ||||||
Linea Directa Aseguradora SA Cia de Seguros y Reaseguros (*) | 12,002,661 | 25,151,907 | ||||||
Siemens Gamesa Renewable Energy SA (*) | 2,992,256 | 99,898,805 | ||||||
318,427,740 | ||||||||
Sweden | 1.0% | ||||||||
Hexagon AB, B Shares | 4,631,543 | 68,662,674 | ||||||
Switzerland | 5.3% | ||||||||
ABB, Ltd. | 4,708,436 | 159,825,452 | ||||||
Idorsia, Ltd. (*) | 910,834 | 25,049,413 | ||||||
Julius Baer Group, Ltd. | 1,668,068 | 108,792,689 | ||||||
The Swatch Group AG | 155,339 | 53,316,322 | ||||||
346,983,876 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 107
Description | Shares | Fair Value | ||||||
Lazard International Strategic Equity Portfolio (continued) | ||||||||
United Kingdom | 16.7% | ||||||||
Allfunds Group PLC | 2,014,790 | 35,073,935 | ||||||
Coca-Cola Europacific Partners PLC | 2,984,603 | 175,354,691 | ||||||
Compass Group PLC (*) | 3,147,969 | 66,394,033 | ||||||
Informa PLC (*) | 15,768,784 | 109,612,167 | ||||||
InterContinental Hotels Group PLC (*) | 749,652 | 49,967,877 | ||||||
Linde PLC (*) | 236,382 | 68,299,627 | ||||||
Prudential PLC | 6,407,396 | 121,572,918 | ||||||
RELX PLC | 8,055,272 | 214,000,574 | ||||||
Rio Tinto PLC | 2,285,122 | 188,126,852 | ||||||
Tesco PLC | 11,951,478 | 36,893,699 | ||||||
THG PLC | 3,604,591 | 30,411,928 | ||||||
1,095,708,301 | ||||||||
United States | 6.8% | ||||||||
Accenture PLC, Class A | 387,280 | 114,166,271 | ||||||
Aon PLC, Class A | 726,956 | 173,568,015 | ||||||
Medtronic PLC | 1,277,596 | 158,587,991 | ||||||
446,322,277 | ||||||||
Total Common Stocks (Cost $4,523,965,194) | 6,093,034,428 | |||||||
Preferred Stocks | 4.0% | ||||||||
Brazil | 0.7% | ||||||||
Banco Bradesco SA | 9,104,040 | 47,096,174 | ||||||
Germany | 3.3% | ||||||||
Volkswagen AG | 862,745 | 216,355,326 | ||||||
Total Preferred Stocks (Cost $193,870,250) | 263,451,500 |
The accompanying notes are an integral part of these financial statements.
108 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard International Strategic Equity Portfolio (concluded) | ||||||||
Short-Term Investments | 2.4% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $159,743,189) | 159,743,189 | $ | 159,743,189 | |||||
Total Investments | 99.5% (Cost $4,877,578,633) | $ | 6,516,229,117 | ||||||
Cash and Other Assets in Excess of Liabilities l 0.5% | 32,020,898 | |||||||
Net Assets | 100.0% | $ | 6,548,250,015 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 109
The accompanying notes are an integral part of these financial statements.
110 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
France | 1.6% | ||||||||
Cie Generale des Etablissements Michelin SCA | 442 | $ | 70,544 | |||||
La Francaise des Jeux SAEM (a) | 1,574 | 92,562 | ||||||
Orange SA | 16,335 | 186,279 | ||||||
Sartorius Stedim Biotech | 169 | 79,948 | ||||||
429,333 | ||||||||
Germany | 0.3% | ||||||||
Merck KGaA | 359 | 68,917 | ||||||
Hong Kong | 1.0% | ||||||||
CLP Holdings, Ltd. | 10,500 | 103,783 | ||||||
Hysan Development Co., Ltd. | 17,000 | 67,766 | ||||||
Sun Hung Kai Properties, Ltd. | 7,500 | 111,761 | ||||||
283,310 | ||||||||
Israel | 0.2% | ||||||||
Bezeq The Israeli Telecommunication Corp., Ltd. (*) | 57,777 | 62,941 | ||||||
Japan | 13.3% | ||||||||
Advance Residence Investment Corp. REIT | 25 | 83,250 | ||||||
Ajinomoto Co., Inc. | 9,000 | 233,594 | ||||||
Benesse Holdings, Inc. | 2,800 | 69,618 | ||||||
Dai-ichi Life Holdings, Inc. | 3,200 | 58,566 | ||||||
Daito Trust Construction Co., Ltd. | 1,400 | 153,056 | ||||||
Daiwa Securities Living Investments Corp. REIT | 88 | 95,699 | ||||||
DCM Holdings Co., Ltd. | 7,900 | 75,220 | ||||||
Electric Power Development Co., Ltd. | 12,300 | 175,522 | ||||||
FUJIFILM Holdings Corp. | 1,100 | 81,543 | ||||||
ITOCHU Corp. | 3,800 | 109,230 | ||||||
Iwatani Corp. | 1,100 | 65,921 | ||||||
Japan Logistics Fund, Inc. REIT | 41 | 123,281 | ||||||
Japan Post Bank Co., Ltd. | 35,200 | 294,838 | ||||||
Japan Post Holdings Co., Ltd. | 12,500 | 102,826 | ||||||
Japan Real Estate Investment Corp. | 21 | 129,085 | ||||||
K’s Holdings Corp. | 6,200 | 71,252 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 111
Description | Shares | Fair Value | ||||||
Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
KDDI Corp. | 2,100 | $ | 65,476 | |||||
Kyudenko Corp. | 2,000 | 64,016 | ||||||
McDonald’s Holdings Co. Japan, Ltd. | 4,900 | 216,145 | ||||||
Mizuho Financial Group, Inc. | 12,900 | 181,769 | ||||||
Nippon Telegraph & Telephone Corp. | 2,500 | 65,121 | ||||||
Osaka Gas Co., Ltd. | 7,000 | 129,700 | ||||||
Rengo Co., Ltd. | 6,600 | 54,942 | ||||||
Sankyo Co., Ltd. | 2,300 | 58,785 | ||||||
Shimizu Corp. | 12,300 | 94,186 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 1,600 | 50,642 | ||||||
Sumitomo Osaka Cement Co., Ltd. | 2,400 | 65,222 | ||||||
Teijin, Ltd. | 4,400 | 66,842 | ||||||
The Hachijuni Bank, Ltd. | 19,700 | 63,464 | ||||||
The Kansai Electric Power Co., Inc. | 10,700 | 101,702 | ||||||
Tohoku Electric Power Co., Inc. | 25,500 | 199,666 | ||||||
Tokyo Gas Co., Ltd. | 9,400 | 176,673 | ||||||
Unicharm Corp. | 2,000 | 80,451 | ||||||
3,657,303 | ||||||||
Netherlands | 2.3% | ||||||||
ASML Holding NV | 96 | 66,096 | ||||||
Flow Traders (a) | 2,670 | 114,850 | ||||||
Koninklijke Ahold Delhaize NV | 6,098 | 181,306 | ||||||
Royal Dutch Shell PLC, A Shares | 3,238 | 65,069 | ||||||
Wolters Kluwer NV | 1,941 | 195,085 | ||||||
622,406 | ||||||||
New Zealand | 0.3% | ||||||||
Fisher & Paykel Healthcare Corp., Ltd., Class C | 3,178 | 69,126 | ||||||
Norway | 1.7% | ||||||||
Orkla ASA | 21,532 | 219,341 | ||||||
Telenor ASA | 10,475 | 176,751 | ||||||
Yara International ASA | 1,356 | 71,424 | ||||||
467,516 |
The accompanying notes are an integral part of these financial statements.
112 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
Singapore | 0.3% | ||||||||
Singapore Exchange, Ltd. | 9,300 | $ | 77,419 | |||||
Spain | 0.4% | ||||||||
Corporacion Financiera Alba SA | 395 | 21,541 | ||||||
Iberdrola SA | 7,320 | 89,197 | ||||||
110,738 | ||||||||
Sweden | 1.4% | ||||||||
Axfood AB | 8,017 | 221,749 | ||||||
Swedish Match AB | 9,692 | 82,665 | ||||||
Telefonaktiebolaget LM Ericsson, B Shares | 7,216 | 90,742 | ||||||
395,156 | ||||||||
Switzerland | 2.8% | ||||||||
Roche Holding AG | 1,120 | 422,095 | ||||||
Swisscom AG | 490 | 279,787 | ||||||
Tecan Group AG | �� | 131 | 64,941 | |||||
766,823 | ||||||||
United Kingdom | 4.0% | ||||||||
Genus PLC | 773 | 53,054 | ||||||
GlaxoSmithKline PLC | 3,983 | 78,245 | ||||||
HSBC Holdings PLC (*) | 30,003 | 173,141 | ||||||
Imperial Brands PLC | 3,994 | 86,069 | ||||||
J Sainsbury PLC | 49,402 | 185,860 | ||||||
National Grid PLC | 8,698 | 110,746 | ||||||
Rio Tinto PLC | 3,622 | 298,188 | ||||||
Rio Tinto, Ltd. | 517 | 49,106 | ||||||
Standard Chartered PLC | 11,091 | 70,666 | ||||||
1,105,075 | ||||||||
United States | 57.4% | ||||||||
3M Co. | 362 | 71,904 | ||||||
Accenture PLC, Class A | 432 | 127,349 | ||||||
Activision Blizzard, Inc. | 1,564 | 149,268 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 113
Description | Shares | Fair Value | ||||||
Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
Adobe, Inc. (*) | 199 | $ | 116,542 | |||||
Agilent Technologies, Inc. | 571 | 84,400 | ||||||
Alleghany Corp. (*) | 124 | 82,717 | ||||||
Alphabet, Inc., Class C (*) | 26 | 65,164 | ||||||
Altria Group, Inc. | 1,754 | 83,631 | ||||||
Amdocs, Ltd. | 984 | 76,122 | ||||||
AMERCO | 147 | 86,642 | ||||||
Ameren Corp. | 646 | 51,706 | ||||||
American Electric Power Co., Inc. | 1,220 | 103,200 | ||||||
American Tower Corp. REIT | 341 | 92,118 | ||||||
American Water Works Co., Inc. | 521 | 80,302 | ||||||
Amgen, Inc. | 366 | 89,213 | ||||||
AMN Healthcare Services, Inc. (*) | 694 | 67,304 | ||||||
Aon PLC, Class A | 677 | 161,641 | ||||||
Automatic Data Processing, Inc. | 1,149 | 228,214 | ||||||
AutoZone, Inc. (*) | 50 | 74,611 | ||||||
Avery Dennison Corp. | 363 | 76,317 | ||||||
Badger Meter, Inc. | 666 | 65,348 | ||||||
Bio-Rad Laboratories, Inc. Class A (*) | 125 | 80,536 | ||||||
Booz Allen Hamilton Holding Corp. | 2,358 | 200,854 | ||||||
Bristol-Myers Squibb Co. | 1,304 | 87,133 | ||||||
Cabot Oil & Gas Corp. | 3,914 | 68,338 | ||||||
Campbell Soup Co. | 1,292 | 58,902 | ||||||
Cboe Global Markets, Inc. | 1,203 | 143,217 | ||||||
CDW Corp. | 435 | 75,973 | ||||||
Centene Corp. (*) | 942 | 68,700 | ||||||
Charter Communications, Inc., Class A (*) | 78 | 56,273 | ||||||
Chemed Corp. | 275 | 130,487 | ||||||
Chubb, Ltd. | 443 | 70,410 | ||||||
Colgate-Palmolive Co. | 4,587 | 373,152 | ||||||
Comcast Corp., Class A | 915 | 52,173 | ||||||
Costco Wholesale Corp. | 285 | 112,766 | ||||||
Crown Castle International Corp., REIT | 681 | 132,863 | ||||||
CVS Health Corp. | 2,244 | 187,239 | ||||||
Deckers Outdoor Corp. (*) | 188 | 72,205 | ||||||
Deere & Co. | 168 | 59,255 |
The accompanying notes are an integral part of these financial statements.
114 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
Dolby Laboratories, Inc., Class A | 1,195 | $ | 117,457 | |||||
Dollar General Corp. | 1,524 | 329,778 | ||||||
Dominion Energy, Inc. | 838 | 61,652 | ||||||
Domino’s Pizza, Inc. | 432 | 201,524 | ||||||
DTE Energy Co. | 480 | 62,208 | ||||||
Eli Lilly & Co. | 918 | 210,699 | ||||||
Evergy, Inc. | 1,170 | 70,703 | ||||||
Exlservice Holdings, Inc. (*) | 744 | 79,057 | ||||||
Extra Space Storage, Inc. REIT | 642 | 105,172 | ||||||
FTI Consulting, Inc. (*) | 477 | 65,163 | ||||||
Generac Holdings, Inc. (*) | 200 | 83,030 | ||||||
General Mills, Inc. | 1,594 | 97,122 | ||||||
Graco, Inc. | 1,510 | 114,307 | ||||||
Hormel Foods Corp. | 3,167 | 151,224 | ||||||
Humana, Inc. | 154 | 68,179 | ||||||
Huntington Ingalls Industries, Inc. | 346 | 72,920 | ||||||
IDEXX Laboratories, Inc. (*) | 214 | 135,152 | ||||||
Intel Corp. | 924 | 51,873 | ||||||
Intuit, Inc. | 170 | 83,329 | ||||||
Jack Henry & Associates, Inc. | 814 | 133,097 | ||||||
Johnson & Johnson | 2,105 | 346,778 | ||||||
Kellogg Co. | 4,047 | 260,344 | ||||||
Keysight Technologies, Inc. (*) | 1,041 | 160,741 | ||||||
Kimberly-Clark Corp. | 1,172 | 156,790 | ||||||
Life Storage, Inc. REIT | 811 | 87,061 | ||||||
Lockheed Martin Corp. | 668 | 252,738 | ||||||
Martin Marietta Materials, Inc. | 179 | 62,974 | ||||||
Matson, Inc. | 974 | 62,336 | ||||||
McDonald’s Corp. | 897 | 207,198 | ||||||
MDU Resources Group, Inc. | 3,225 | 101,072 | ||||||
Merck & Co., Inc. | 3,522 | 273,906 | ||||||
Mettler-Toledo International, Inc. (*) | 58 | 80,350 | ||||||
Microsoft Corp. | 679 | 183,941 | ||||||
Monolithic Power Systems, Inc. | 191 | 71,329 | ||||||
Moody’s Corp. | 207 | 75,011 | ||||||
Motorola Solutions, Inc. | 320 | 69,392 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 115
Description | Shares | Fair Value | ||||||
Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
MYR Group, Inc. (*) | 923 | $ | 83,919 | |||||
Newmont Corp. | 830 | 52,605 | ||||||
Northrop Grumman Corp. | 473 | 171,902 | ||||||
O’Reilly Automotive, Inc. (*) | 111 | 62,849 | ||||||
Oracle Corp. | 2,640 | 205,498 | ||||||
Organon & Co. (*) | 352 | 10,652 | ||||||
Paychex, Inc. | 1,190 | 127,687 | ||||||
PepsiCo, Inc. | 1,610 | 238,554 | ||||||
Philip Morris International, Inc. | 1,397 | 138,457 | ||||||
Portland General Electric Co. | 1,302 | 59,996 | ||||||
Premier, Inc., Class A | 1,958 | 68,119 | ||||||
Public Storage REIT | 810 | 243,559 | ||||||
Quest Diagnostics, Inc. | 683 | 90,136 | ||||||
Quidel Corp. (*) | 589 | 75,463 | ||||||
Realty Income Corp. REIT | 943 | 62,936 | ||||||
Republic Services, Inc. | 3,065 | 337,181 | ||||||
ResMed, Inc. | 467 | 115,125 | ||||||
S&P Global, Inc. | 239 | 98,098 | ||||||
SBA Communications Corp. REIT | 241 | 76,807 | ||||||
Service Corp. International | 3,988 | 213,717 | ||||||
Southwest Gas Holdings, Inc. | 3,092 | 204,659 | ||||||
Stepan Co. | 503 | 60,496 | ||||||
STERIS PLC | 451 | 93,041 | ||||||
Synopsys, Inc. (*) | 477 | 131,552 | ||||||
Target Corp. | 545 | 131,748 | ||||||
Texas Instruments, Inc. | 340 | 65,382 | ||||||
The Allstate Corp. | 463 | 60,394 | ||||||
The Clorox Co. | 1,484 | 266,986 | ||||||
The Hartford Financial Services Group, Inc. | 1,208 | 74,860 | ||||||
The Hershey Co. | 1,702 | 296,454 | ||||||
The Home Depot, Inc. | 275 | 87,695 | ||||||
The J.M. Smucker Co. | 510 | 66,081 | ||||||
The Kroger Co. | 3,307 | 126,691 | ||||||
The Procter & Gamble Co. | 2,871 | 387,384 | ||||||
Thermo Fisher Scientific, Inc. | 409 | 206,328 | ||||||
Tractor Supply Co. | 569 | 105,868 |
The accompanying notes are an integral part of these financial statements.
116 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Managed Equity Volatility Portfolio (concluded) | ||||||||
Tyler Technologies, Inc. (*) | 154 | $ | 69,665 | |||||
Tyson Foods, Inc., Class A | 820 | 60,483 | ||||||
United Therapeutics Corp. (*) | 764 | 137,069 | ||||||
UnitedHealth Group, Inc. | 192 | 76,884 | ||||||
Verizon Communications, Inc. | 6,508 | 364,643 | ||||||
Vertex Pharmaceuticals, Inc. (*) | 297 | 59,884 | ||||||
Viatris, Inc. | 2,852 | 40,755 | ||||||
Walmart, Inc. | 2,268 | 319,833 | ||||||
Waste Management, Inc. | 570 | 79,863 | ||||||
Waters Corp. (*) | 312 | 107,830 | ||||||
Watts Water Technologies, Inc., Class A | 590 | 86,087 | ||||||
WD-40 Co. | 329 | 84,319 | ||||||
WEC Energy Group, Inc. | 1,178 | 104,783 | ||||||
Werner Enterprises, Inc. | 1,201 | 53,469 | ||||||
West Pharmaceutical Services, Inc. | 337 | 121,017 | ||||||
White Mountains Insurance Group, Ltd. | 54 | 61,994 | ||||||
Zoetis, Inc. | 1,310 | 244,132 | ||||||
15,781,385 | ||||||||
Total Common Stocks (Cost $24,292,792) | 26,523,544 | |||||||
Short-Term Investments | 3.5% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $966,225) | 966,225 | 966,225 | ||||||
Total Investments | 100.0% (Cost $25,259,017) | $ | 27,489,769 | ||||||
Cash and Other Assets in Excess of Liabilities | 0.0% | 755 | |||||||
Net Assets | 100.0% | $ | 27,490,524 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 117
The accompanying notes are an integral part of these financial statements.
118 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard US Equity Concentrated Portfolio (continued) | ||||||||
Health Care Equipment & Supplies | 10.9% | ||||||||
Baxter International, Inc. | 708,971 | $ | 57,072,166 | |||||
Medtronic PLC | 1,261,878 | 156,636,916 | ||||||
213,709,082 | ||||||||
Hotels, Restaurants & Leisure | 5.7% | ||||||||
McDonald’s Corp. | 316,695 | 73,153,378 | ||||||
Starbucks Corp. | 340,590 | 38,081,368 | ||||||
111,234,746 | ||||||||
Interactive Media & Services | 8.3% | ||||||||
Alphabet, Inc., Class A (*) | 66,789 | 163,084,712 | ||||||
IT Services | 12.9% | ||||||||
Fiserv, Inc. (*) | 1,285,557 | 137,413,188 | ||||||
LiveRamp Holdings, Inc. (*) | 625,903 | 29,323,555 | ||||||
VeriSign, Inc. (*) | 111,336 | 25,350,094 | ||||||
Visa, Inc., Class A | 258,696 | 60,488,299 | ||||||
252,575,136 | ||||||||
Life Sciences Tools & Services | 2.2% | ||||||||
Sotera Health Co. | 1,825,894 | 44,241,412 | ||||||
Multiline Retail | 3.0% | ||||||||
Dollar Tree, Inc. (*) | 597,996 | 59,500,602 | ||||||
Professional Services | 2.0% | ||||||||
Verisk Analytics, Inc., Class A | 226,769 | 39,621,080 | ||||||
Road & Rail | 1.8% | ||||||||
Norfolk Southern Corp. | 134,162 | 35,607,936 | ||||||
Semiconductors & Semiconductor Equipment | 10.9% | ||||||||
Analog Devices, Inc. | 773,773 | 133,212,760 | ||||||
Skyworks Solutions, Inc. | 416,655 | 79,893,596 | ||||||
213,106,356 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 119
�� | Fair | |||||||
Description | Shares | Value | ||||||
Lazard US Equity Concentrated Portfolio (concluded) | ||||||||
Specialty Retail | 2.9% | ||||||||
Lowe’s Cos., Inc. | 290,314 | $ | 56,312,207 | |||||
Total Common Stocks (Cost $1,255,548,759) | 1,954,865,765 | |||||||
Short-Term Investments | 0.4% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $7,501,644) | 7,501,644 | 7,501,644 | ||||||
Total Investments | 100.0% (Cost $1,263,050,403) | $ | 1,962,367,409 | ||||||
Cash and Other Assets in Excess of Liabilities | 0.0% | 755,309 | |||||||
Net Assets | 100.0% | $ | 1,963,122,718 |
The accompanying notes are an integral part of these financial statements.
120 Semi-Annual Report
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 121
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard US Equity Focus Portfolio (continued) | ||||||||
Industrial Conglomerates | 4.0% | ||||||||
Honeywell International, Inc. | 13,368 | $ | 2,932,271 | |||||
Insurance | 3.8% | ||||||||
Marsh & McLennan Cos., Inc. | 19,722 | 2,774,491 | ||||||
Interactive Media & Services | 8.6% | ||||||||
Alphabet, Inc., Class A (*) | 2,591 | 6,326,678 | ||||||
IT Services | 5.5% | ||||||||
Visa, Inc., Class A | 17,267 | 4,037,370 | ||||||
Life Sciences Tools & Services | 2.5% | ||||||||
IQVIA Holdings, Inc. (*) | 7,782 | 1,885,734 | ||||||
Multiline Retail | 3.5% | ||||||||
Dollar General Corp. | 11,940 | 2,583,697 | ||||||
Pharmaceuticals | 5.2% | ||||||||
Johnson & Johnson | 23,322 | 3,842,066 | ||||||
Road & Rail | 4.1% | ||||||||
Norfolk Southern Corp. | 11,369 | 3,017,446 | ||||||
Semiconductors & Semiconductor Equipment | 4.8% | ||||||||
Analog Devices, Inc. | 20,700 | 3,563,712 | ||||||
Software | 11.1% | ||||||||
Adobe, Inc. (*) | 2,020 | 1,182,993 | ||||||
Microsoft Corp. | 21,306 | 5,771,796 | ||||||
salesforce.com, Inc. (*) | 5,227 | 1,276,799 | ||||||
8,231,588 | ||||||||
Specialty Retail | 4.4% | ||||||||
Lowe’s Cos., Inc. | 16,823 | 3,263,157 |
The accompanying notes are an integral part of these financial statements.
122 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard US Equity Focus Portfolio (concluded) | ||||||||
Total Common Stocks (Cost $48,051,628) | 72,615,171 | |||||||
Short-Term Investments | 2.0% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $1,452,047) | 1,452,047 | 1,452,047 | ||||||
Total Investments | 100.2% (Cost $49,503,675) | $ | 74,067,218 | ||||||
Liabilities in Excess of Cash and Other Assets | (0.2)% | (120,938 | ) | ||||||
Net Assets | 100.0% | $ | 73,946,280 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 123
The accompanying notes are an integral part of these financial statements.
124 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard US Small-Mid Cap Equity Portfolio (continued) | ||||||||
Chemicals | 2.3% | ||||||||
Ashland Global Holdings, Inc. | 10,843 | $ | 948,762 | |||||
Ingevity Corp. (*) | 21,891 | 1,781,052 | ||||||
2,729,814 | ||||||||
Communications Equipment | 2.9% | ||||||||
Ciena Corp. (*) | 27,716 | 1,576,763 | ||||||
F5 Networks, Inc. (*) | 9,420 | 1,758,337 | ||||||
3,335,100 | ||||||||
Construction & Engineering | 0.8% | ||||||||
Valmont Industries, Inc. | 3,931 | 927,913 | ||||||
Construction Materials | 1.2% | ||||||||
Eagle Materials, Inc. | 9,753 | 1,385,999 | ||||||
Containers & Packaging | 2.2% | ||||||||
Avery Dennison Corp. | 5,610 | 1,179,446 | ||||||
Graphic Packaging Holding Co. | 78,254 | 1,419,528 | ||||||
2,598,974 | ||||||||
Diversified Financial Services | 1.2% | ||||||||
Landcadia Holdings III, Inc. Class A (*) | 109,457 | 1,357,267 | ||||||
Electrical Equipment | 1.9% | ||||||||
Atkore, Inc. (*) | 12,594 | 894,174 | ||||||
EnerSys | 13,751 | 1,343,885 | ||||||
2,238,059 | ||||||||
Energy Equipment & Services | 2.4% | ||||||||
Cactus, Inc., Class A | 37,521 | 1,377,771 | ||||||
Liberty Oilfield Services, Inc., Class A (*) | 97,994 | 1,387,595 | ||||||
2,765,366 | ||||||||
Equity Real Estate Investment Trusts (REITs) | 7.6% | ||||||||
Alexandria Real Estate Equities, Inc. | 7,435 | 1,352,724 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 125
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard US Small-Mid Cap Equity Portfolio (continued) | ||||||||
Brixmor Property Group, Inc. | 71,004 | $ | 1,625,282 | |||||
Camden Property Trust | 8,372 | 1,110,713 | ||||||
Hudson Pacific Properties, Inc. | 60,486 | 1,682,721 | ||||||
PS Business Parks, Inc. | 12,290 | 1,819,903 | ||||||
Summit Hotel Properties, Inc. (*) | 138,952 | 1,296,422 | ||||||
8,887,765 | ||||||||
Food & Staples Retailing | 1.6% | ||||||||
US Foods Holding Corp. (*) | 46,945 | 1,800,810 | ||||||
Food Products | 1.0% | ||||||||
Hostess Brands, Inc. (*) | 74,956 | 1,213,538 | ||||||
Gas Utilities | 1.5% | ||||||||
New Jersey Resources Corp. | 44,791 | 1,772,380 | ||||||
Health Care Equipment & Supplies | 1.3% | ||||||||
Ortho Clinical Diagnostics Holdings PLC | 69,364 | 1,485,083 | ||||||
Health Care Providers & Services | 2.2% | ||||||||
ATI Physical Therapy, Inc. (*) | 144,066 | 1,374,390 | ||||||
Henry Schein, Inc. (*) | 16,213 | 1,202,842 | ||||||
2,577,232 | ||||||||
Hotels, Restaurants & Leisure | 3.0% | ||||||||
Brinker International, Inc. (*) | 28,466 | 1,760,622 | ||||||
Wyndham Hotels & Resorts, Inc. | 23,839 | 1,723,321 | ||||||
3,483,943 | ||||||||
Household Durables | 0.9% | ||||||||
Leggett & Platt, Inc. | 21,154 | 1,095,989 | ||||||
Industrial Conglomerates | 1.4% | ||||||||
Carlisle Cos., Inc. | 8,671 | 1,659,456 |
The accompanying notes are an integral part of these financial statements.
126 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard US Small-Mid Cap Equity Portfolio (continued) | ||||||||
Insurance | 4.4% | ||||||||
Arch Capital Group, Ltd. (*) | 45,029 | $ | 1,753,429 | |||||
Brown & Brown, Inc. | 37,939 | 2,016,079 | ||||||
Reinsurance Group of America, Inc. | 11,515 | 1,312,710 | ||||||
5,082,218 | ||||||||
Interactive Media & Services | 2.1% | ||||||||
Cars.com, Inc. (*) | 114,113 | 1,635,239 | ||||||
MediaAlpha, Inc., Class A | 19,623 | 826,129 | ||||||
2,461,368 | ||||||||
IT Services | 2.3% | ||||||||
Amdocs, Ltd. | 14,139 | 1,093,793 | ||||||
LiveRamp Holdings, Inc. (*) | 22,964 | 1,075,863 | ||||||
Squarespace, Inc. Class A (*) | 9,284 | 551,563 | ||||||
2,721,219 | ||||||||
Leisure Products | 2.4% | ||||||||
Brunswick Corp. | 10,627 | 1,058,662 | ||||||
Hasbro, Inc. | 18,362 | 1,735,576 | ||||||
2,794,238 | ||||||||
Life Sciences Tools & Services | 5.6% | ||||||||
Adaptive Biotechnologies Corp. (*) | 41,014 | 1,675,832 | ||||||
Charles River Laboratories International, Inc. (*) | 3,919 | 1,449,717 | ||||||
ICON PLC (*) | 6,085 | 1,257,830 | ||||||
Maravai LifeSciences Holdings, Inc., Class A | 22,157 | 924,612 | ||||||
Sotera Health Co. | 49,949 | 1,210,264 | ||||||
6,518,255 | ||||||||
Machinery | 4.1% | ||||||||
Altra Industrial Motion Corp. | 18,032 | 1,172,441 | ||||||
Columbus McKinnon Corp. | 21,976 | 1,060,122 | ||||||
Gates Industrial Corp. PLC (*) | 105,780 | 1,911,445 | ||||||
Kennametal, Inc. | 18,110 | 650,511 | ||||||
4,794,519 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 127
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard US Small-Mid Cap Equity Portfolio (continued) | ||||||||
Metals & Mining | 1.0% | ||||||||
Schnitzer Steel Industries, Inc., Class A | 22,766 | $ | 1,116,672 | |||||
Multiline Retail | 1.4% | ||||||||
Kohl’s Corp. | 28,812 | 1,587,829 | ||||||
Oil, Gas & Consumable Fuels | 1.7% | ||||||||
Magnolia Oil & Gas Corp., Class A (*) | 128,584 | 2,009,768 | ||||||
Paper & Forest Products | 1.2% | ||||||||
Neenah, Inc. | 27,754 | 1,392,418 | ||||||
Pharmaceuticals | 1.3% | ||||||||
Catalent, Inc. (*) | 13,539 | 1,463,837 | ||||||
Professional Services | 0.9% | ||||||||
Leidos Holdings, Inc. | 10,193 | 1,030,512 | ||||||
Semiconductors & Semiconductor Equipment | 2.4% | ||||||||
CMC Materials, Inc. | 6,406 | 965,641 | ||||||
MKS Instruments, Inc. | 10,216 | 1,817,937 | ||||||
2,783,578 | ||||||||
Software | 8.6% | ||||||||
CyberArk Software, Ltd. (*) | 10,003 | 1,303,091 | ||||||
Datto Holding Corp. | 48,808 | 1,358,815 | ||||||
Dolby Laboratories, Inc., Class A | 12,511 | 1,229,706 | ||||||
j2 Global, Inc. (*) | 10,702 | 1,472,060 | ||||||
Pegasystems, Inc. | 13,688 | 1,905,233 | ||||||
PTC, Inc. (*) | 7,198 | 1,016,789 | ||||||
SentinelONE, Inc. Class A (*) | 11,102 | 471,835 | ||||||
SolarWinds Corp. (*) | 77,265 | 1,305,006 | ||||||
10,062,535 | ||||||||
Specialty Retail | 1.9% | ||||||||
Designer Brands, Inc., Class A (*) | 34,703 | 574,334 |
The accompanying notes are an integral part of these financial statements.
128 Semi-Annual Report
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard US Small-Mid Cap Equity Portfolio (concluded) | ||||||||
Floor & Decor Holdings, Inc., Class A (*) | 6,991 | $ | 738,949 | |||||
Leslie’s, Inc. | 34,092 | 937,189 | ||||||
2,250,472 | ||||||||
Textiles, Apparel & Luxury Goods | 0.9% | ||||||||
Tapestry, Inc. (*) | 24,064 | 1,046,303 | ||||||
Trading Companies & Distributors | 0.8% | ||||||||
Air Lease Corp. | 22,533 | 940,527 | ||||||
Total Common Stocks (Cost $84,807,973) | 113,785,398 | |||||||
Total Investments | 97.6% (Cost $84,807,973) | 113,785,398 | |||||||
Cash and Other Assets in Excess of Liabilities | 2.4% | 2,826,169 | |||||||
Net Assets | 100.0% | $ | 116,611,567 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 129
The accompanying notes are an integral part of these financial statements.
130 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard US Sustainable Equity Portfolio (continued) | ||||||||
Equity Real Estate Investment Trusts (REITs) | 2.3% | ||||||||
Prologis, Inc., REIT | 2,640 | $ | 315,559 | |||||
Food & Staples Retailing | 1.4% | ||||||||
Sysco Corp. | 2,472 | 192,198 | ||||||
Food Products | 0.8% | ||||||||
Oatly Group AB ADR | 2,894 | 70,787 | ||||||
Vital Farms, Inc. | 1,594 | 31,816 | ||||||
102,603 | ||||||||
Health Care Equipment & Supplies | 8.6% | ||||||||
Boston Scientific Corp. (*) | 5,519 | 235,992 | ||||||
Danaher Corp. | 1,532 | 411,128 | ||||||
Medtronic PLC | 4,200 | 521,346 | ||||||
1,168,466 | ||||||||
Health Care Providers & Services | 5.1% | ||||||||
Humana, Inc. | 395 | 174,874 | ||||||
Laboratory Corp. of America Holdings (*) | 768 | 211,853 | ||||||
UnitedHealth Group, Inc. | 767 | 307,138 | ||||||
693,865 | ||||||||
Hotels, Restaurants & Leisure | 2.0% | ||||||||
Starbucks Corp. | 2,371 | 265,102 | ||||||
Household Products | 2.1% | ||||||||
The Procter & Gamble Co. | 2,121 | 286,187 | ||||||
IT Services | 6.9% | ||||||||
Accenture PLC, Class A | 1,556 | 458,693 | ||||||
Visa, Inc., Class A | 2,073 | 484,709 | ||||||
943,402 | ||||||||
Life Sciences Tools & Services | 5.3% | ||||||||
Agilent Technologies, Inc. | 1,404 | 207,525 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 131
Description | Shares | Fair Value | ||||||
Lazard US Sustainable Equity Portfolio (continued) | ||||||||
IQVIA Holdings, Inc. (*) | 990 | $ | 239,897 | |||||
Maravai LifeSciences Holdings, Inc., Class A | 626 | 26,123 | ||||||
Thermo Fisher Scientific, Inc. | 494 | 249,208 | ||||||
722,753 | ||||||||
Machinery | 3.7% | ||||||||
Deere & Co. | 863 | 304,389 | ||||||
Watts Water Technologies, Inc., Class A | 695 | 101,407 | ||||||
Xylem, Inc. | 863 | 103,526 | ||||||
509,322 | ||||||||
Multiline Retail | 2.7% | ||||||||
Dollar General Corp. | 1,678 | 363,102 | ||||||
Pharmaceuticals | 4.5% | ||||||||
Johnson & Johnson | 2,122 | 349,578 | ||||||
Zoetis, Inc. | 1,432 | 266,868 | ||||||
616,446 | ||||||||
Road & Rail | 2.3% | ||||||||
Norfolk Southern Corp. | 1,187 | 315,042 | ||||||
Semiconductors & Semiconductor Equipment | 6.1% | ||||||||
Analog Devices, Inc. | 2,170 | 373,587 | ||||||
Applied Materials, Inc. | 1,280 | 182,272 | ||||||
Texas Instruments, Inc. | 1,432 | 275,374 | ||||||
831,233 | ||||||||
Software | 13.5% | ||||||||
Adobe, Inc. (*) | 272 | 159,294 | ||||||
Intuit, Inc. | 493 | 241,654 | ||||||
Microsoft Corp. | 3,977 | 1,077,369 | ||||||
Palo Alto Networks, Inc. (*) | 249 | 92,391 | ||||||
salesforce.com, Inc. (*) | 1,088 | 265,766 | ||||||
1,836,474 |
The accompanying notes are an integral part of these financial statements.
132 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard US Sustainable Equity Portfolio (concluded) | ||||||||
Specialty Retail | 5.0% | ||||||||
Ross Stores, Inc. | 1,486 | $ | 184,264 | |||||
The Home Depot, Inc. | 1,573 | 501,614 | ||||||
685,878 | ||||||||
Total Common Stocks (Cost $10,095,556) | 13,363,985 | |||||||
Short-Term Investments | 1.6% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $221,014) | 221,014 | 221,014 | ||||||
Total Investments | 99.9% (Cost $10,316,570) | $ | 13,584,999 | ||||||
Cash and Other Assets in Excess of Liabilities | 0.1% | 10,103 | |||||||
Net Assets | 100.0% | $ | 13,595,102 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 133
The Lazard Funds, Inc. Notes to Portfolios of Investments
June 30, 2021 (unaudited)
(*) | Non-income producing security. |
(‡) | Security valued using Level 2 inputs, based on reference to a similar security which was trading on an active market, under GAAP hierarchy, see Note 9 in the Notes to Financial Statements. |
(#) | Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At June 30, 2021 these securities accounted for 0.7% of the net assets for the Lazard Emerging Markets Equity Advantage Portfolio and 3.5% of the net assets of Lazard International Equity Concentrated Portfolio. |
(^) | Refer to Note 5 in the Notes to Financial Statements for further details related to holdings of 5% voting securities of portfolio companies. |
(») | The portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts. |
Security Abbreviations: | ||
ADR | — | American Depositary Receipt |
GDR | — | Global Depositary Receipt |
NVDR | — | Non-Voting Depositary Receipt |
PJSC | — | Public Joint Stock Company |
REIT | — | Real Estate Investment Trust |
Currency Abbreviations: | |||||
AUD | — | Australian Dollar | GBP | — | British Pound Sterling |
CAD | — | Canadian Dollar | HKD | — | Hong- Kong Dollar |
EUR | — | Euro | USD | — | United State Dollar |
Counterparty Abbreviations: | |||||
BNP | — | BNP Paribas SA | MSC | — | Morgan Stanley & Co. |
CAN | — | Canadian Imperial Bank of Commerce | RBC | — | Royal Bank of Canada |
CIT | — | Citibank NA | SCB | — | Standard Chartered Bank |
HSB | — | HSBC Bank USA NA | SSB | — | State Street Bank and Trust Co. |
MEL | — | The Bank of New York Mellon Corp. |
The accompanying notes are an integral part of these financial statements.
134 Semi-Annual Report
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Semi-Annual Report 135
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country:
Industry† | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio | |||||||||||||
Common & Preferred Stocks | |||||||||||||||||
Aerospace & Defense | — | % | — | % | — | % | — | % | |||||||||
Air Freight & Logistics | 1.1 | — | 0.2 | — | |||||||||||||
Airlines | — | 0.5 | — | — | |||||||||||||
Auto Components | 2.6 | 0.7 | 0.7 | 1.4 | |||||||||||||
Automobiles | — | 0.7 | 2.5 | 1.8 | |||||||||||||
Banks | 22.1 | 10.4 | 12.7 | 23.7 | |||||||||||||
Beverages | 0.9 | 3.0 | 1.4 | — | |||||||||||||
Biotechnology | — | — | 1.1 | — | |||||||||||||
Building Products | 0.7 | — | 0.2 | — | |||||||||||||
Capital Markets | — | 1.2 | 0.7 | — | |||||||||||||
Chemicals | 1.2 | 2.4 | 3.0 | 1.8 | |||||||||||||
Commercial Services & Suppliers | — | — | 0.4 | 1.1 | |||||||||||||
Communications Equipment | 0.4 | 0.7 | — | — | |||||||||||||
Construction & Engineering | — | — | — | — | |||||||||||||
Construction Materials | 0.3 | 1.9 | 0.8 | 2.7 | |||||||||||||
Consumer Finance | 1.0 | — | 0.3 | — | |||||||||||||
Containers & Packaging | — | — | 0.5 | — | |||||||||||||
Diversified Consumer Services | 0.7 | 0.6 | 0.1 | — | |||||||||||||
Diversified Financial Services | — | — | 1.4 | — | |||||||||||||
Diversified Telecommunication Services | — | 0.9 | 2.1 | 2.2 | |||||||||||||
Electric Utilities | — | — | 0.5 | 0.6 | |||||||||||||
Electrical Equipment | 1.3 | — | 0.7 | — | |||||||||||||
Electronic Equipment, Instruments & Components | 1.2 | 1.8 | 3.4 | 2.4 | |||||||||||||
Entertainment | 3.8 | 4.4 | 0.7 | — | |||||||||||||
Food & Staples Retailing | — | — | 0.7 | 1.0 | |||||||||||||
Food Products | — | 1.3 | 1.0 | 0.7 | |||||||||||||
Gas Utilities | 0.6 | 0.5 | 0.5 | — | |||||||||||||
Health Care Equipment & Supplies | — | — | 1.2 | — | |||||||||||||
Health Care Providers & Services | — | — | 0.7 | 2.7 | |||||||||||||
Hotels, Restaurants & Leisure | 2.0 | 1.0 | 1.1 | 0.7 | |||||||||||||
Household Durables | — | 0.5 | 0.6 | 1.4 | |||||||||||||
Household Products | — | — | 0.3 | 0.7 | |||||||||||||
Independent Power & Renewable Electricity Producers | — | — | 0.7 | 0.7 | |||||||||||||
Industrial Conglomerates | — | — | 0.2 | 1.1 | |||||||||||||
Insurance | 1.9 | 2.7 | 2.4 | 3.3 | |||||||||||||
Interactive Media & Services | 10.0 | 10.2 | 6.5 | — | |||||||||||||
Internet & Direct Marketing Retail | 7.3 | 9.0 | 8.3 | — | |||||||||||||
IT Services | 2.1 | 3.1 | 3.1 | 1.2 |
The accompanying notes are an integral part of these financial statements.
136 Semi-Annual Report
Lazard Emerging Markets Strategic Equity Portfolio | Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | Lazard Global Listed Infrastructure Portfolio | Lazard Global Strategic Equity Portfolio | |||||||||||||||
— | % | — | % | 1.0 | % | — | % | — | % | ||||||||||
— | — | — | — | 1.0 | |||||||||||||||
— | — | — | — | — | |||||||||||||||
1.2 | — | — | — | 1.5 | |||||||||||||||
1.6 | — | — | — | 1.5 | |||||||||||||||
17.5 | — | 4.1 | — | 3.5 | |||||||||||||||
1.2 | — | 7.3 | — | 2.4 | |||||||||||||||
— | — | — | — | 2.2 | |||||||||||||||
— | — | 0.8 | — | — | |||||||||||||||
1.2 | — | 6.7 | — | 7.0 | |||||||||||||||
1.2 | — | — | — | 2.6 | |||||||||||||||
— | 1.8 | — | — | — | |||||||||||||||
— | 3.1 | 1.9 | — | — | |||||||||||||||
— | 6.4 | — | 12.8 | — | |||||||||||||||
2.1 | — | — | — | — | |||||||||||||||
— | — | — | — | 2.1 | |||||||||||||||
— | — | — | — | — | |||||||||||||||
— | 6.1 | — | — | — | |||||||||||||||
— | — | — | — | — | |||||||||||||||
0.7 | — | — | — | — | |||||||||||||||
— | 3.2 | — | 12.2 | 3.1 | |||||||||||||||
— | — | 3.5 | — | 3.1 | |||||||||||||||
1.5 | — | 1.6 | — | 1.4 | |||||||||||||||
2.4 | — | 1.9 | — | 3.3 | |||||||||||||||
1.0 | — | — | — | — | |||||||||||||||
— | — | — | — | — | |||||||||||||||
1.5 | 3.1 | 1.1 | 10.5 | — | |||||||||||||||
— | 4.1 | 1.2 | — | 3.4 | |||||||||||||||
1.3 | 21.2 | — | — | 1.5 | |||||||||||||||
3.4 | 5.1 | 2.5 | — | 1.1 | |||||||||||||||
2.5 | — | 0.6 | — | — | |||||||||||||||
0.8 | — | 1.4 | — | — | |||||||||||||||
— | — | — | — | — | |||||||||||||||
— | — | 0.9 | — | — | |||||||||||||||
2.5 | — | 5.1 | — | 4.1 | |||||||||||||||
7.9 | — | 5.8 | — | 6.2 | |||||||||||||||
6.6 | — | 1.9 | — | 3.0 | |||||||||||||||
2.7 | 3.1 | 4.3 | — | 5.1 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 137
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country:
Industry† | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio | |||||||||||||
Leisure Products | — | % | — | % | — | % | — | % | |||||||||
Life Sciences Tools & Services | 0.6 | 1.4 | 0.8 | — | |||||||||||||
Machinery | 4.0 | 1.2 | 1.6 | 0.6 | |||||||||||||
Marine | — | — | 1.6 | — | |||||||||||||
Media | — | — | 0.1 | — | |||||||||||||
Metals & Mining | 1.9 | 4.0 | 4.5 | 3.6 | |||||||||||||
Multiline Retail | 1.6 | 1.6 | — | — | |||||||||||||
Multi-Utilities | — | — | — | — | |||||||||||||
Oil, Gas & Consumable Fuels | 2.2 | 4.4 | 5.3 | 9.6 | |||||||||||||
Paper & Forest Products | 1.3 | 1.5 | 0.2 | 0.7 | |||||||||||||
Personal Products | — | 1.3 | 0.4 | 3.2 | |||||||||||||
Pharmaceuticals | — | — | 1.9 | — | |||||||||||||
Professional Services | — | — | — | — | |||||||||||||
Real Estate Management & Development | — | — | 0.8 | 1.0 | |||||||||||||
Road & Rail | 2.3 | 0.7 | — | — | |||||||||||||
Semiconductors & Semiconductor Equipment | 14.1 | 13.5 | 8.8 | 10.0 | |||||||||||||
Software | 0.8 | — | — | — | |||||||||||||
Specialty Retail | 1.9 | 1.2 | 1.8 | 1.1 | |||||||||||||
Technology Hardware, Storage & Peripherals | 6.2 | 8.1 | 5.9 | 5.6 | |||||||||||||
Textiles, Apparel & Luxury Goods | 0.7 | 1.6 | 1.8 | — | |||||||||||||
Tobacco | — | — | 0.5 | 1.2 | |||||||||||||
Trading Companies & Distributors | — | — | — | — | |||||||||||||
Transportation Infrastructure | 0.9 | 1.5 | 0.6 | 1.6 | |||||||||||||
Water Utilities | — | — | 0.2 | — | |||||||||||||
Wireless Telecommunication Services | — | — | 1.3 | 4.2 | |||||||||||||
Subtotal | 99.7 | 99.5 | 98.8 | 93.6 | |||||||||||||
Short-Term Investments | 0.7 | 0.5 | 0.9 | 2.5 | |||||||||||||
Total Investments | 100.4 | % | 100.0 | % | 99.7 | % | 96.1 | % |
† | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
138 Semi-Annual Report
Lazard Emerging Markets Strategic Equity Portfolio | Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | Lazard Global Listed Infrastructure Portfolio | Lazard Global Strategic Equity Portfolio | ||||||||||||||||
— | % | — | % | 1.8 | % | — | % | — | % | |||||||||||
— | — | 6.2 | — | 5.5 | ||||||||||||||||
2.1 | — | — | — | — | ||||||||||||||||
— | — | — | — | — | ||||||||||||||||
— | 9.1 | — | 3.4 | 2.6 | ||||||||||||||||
3.5 | — | 1.0 | — | 1.4 | ||||||||||||||||
1.6 | 3.0 | 2.8 | — | 2.8 | ||||||||||||||||
— | 7.9 | — | 18.4 | — | ||||||||||||||||
5.8 | — | — | — | — | ||||||||||||||||
1.5 | — | — | — | — | ||||||||||||||||
2.9 | — | 3.3 | — | — | ||||||||||||||||
1.2 | — | 5.3 | — | 2.7 | ||||||||||||||||
— | 9.2 | 6.4 | — | 4.9 | ||||||||||||||||
1.1 | — | — | — | — | ||||||||||||||||
— | — | 0.9 | 5.8 | — | ||||||||||||||||
10.0 | — | 5.4 | — | 6.1 | ||||||||||||||||
— | — | 5.0 | — | 11.1 | ||||||||||||||||
0.2 | — | 2.6 | — | — | ||||||||||||||||
3.7 | — | — | — | — | ||||||||||||||||
1.9 | 4.0 | 4.0 | — | 1.9 | ||||||||||||||||
0.9 | — | — | — | — | ||||||||||||||||
— | — | 1.4 | — | 1.4 | ||||||||||||||||
— | 4.0 | — | 12.2 | — | ||||||||||||||||
— | 3.0 | — | 12.6 | — | ||||||||||||||||
2.4 | — | — | — | — | ||||||||||||||||
99.6 | 97.4 | 99.7 | 87.9 | 99.5 | ||||||||||||||||
1.1 | 2.5 | 2.0 | 10.1 | 0.9 | ||||||||||||||||
100.7 | % | 99.9 | % | 101.7 | % | 98.0 | % | 100.4 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 139
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country (continued):
Industry† | Lazard International Equity Advantage Portfolio | Lazard International Equity Concentrated Portfolio | Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | |||||||||||||
Common & Preferred Stocks | |||||||||||||||||
Aerospace & Defense | — | % | 4.1 | % | 2.9 | % | 1.6 | % | |||||||||
Air Freight & Logistics | 2.6 | — | — | — | |||||||||||||
Airlines | 0.1 | — | 1.3 | 1.0 | |||||||||||||
Auto Components | 1.5 | — | 1.4 | 1.1 | |||||||||||||
Automobiles | 4.3 | 3.7 | 3.2 | 2.6 | |||||||||||||
Banks | 7.7 | 3.0 | 7.7 | 9.6 | |||||||||||||
Beverages | 0.7 | 8.9 | 3.8 | 2.5 | |||||||||||||
Biotechnology | 1.1 | — | — | — | |||||||||||||
Building Products | 4.6 | — | 1.0 | — | |||||||||||||
Capital Markets | 2.4 | — | 2.1 | 0.5 | |||||||||||||
Chemicals | 2.2 | 2.5 | 5.0 | 4.4 | |||||||||||||
Commercial Services & Suppliers | 0.6 | — | — | — | |||||||||||||
Communications Equipment | 0.6 | — | — | — | |||||||||||||
Construction & Engineering | 0.3 | — | — | — | |||||||||||||
Construction Materials | 1.1 | — | — | — | |||||||||||||
Consumer Finance | 0.2 | — | — | — | |||||||||||||
Containers & Packaging | — | — | — | — | |||||||||||||
Diversified Consumer Services | — | — | — | — | |||||||||||||
Diversified Financial Services | 0.6 | — | — | — | |||||||||||||
Diversified Telecommunication Services | 0.3 | — | 1.2 | 1.7 | |||||||||||||
Electric Utilities | 2.8 | — | 2.0 | 1.7 | |||||||||||||
Electrical Equipment | 1.9 | — | 4.2 | 4.3 | |||||||||||||
Electronic Equipment, Instruments & Components | 1.0 | — | — | 1.2 | |||||||||||||
Entertainment | 1.1 | — | 3.2 | 2.8 | |||||||||||||
Equity Real Estate Investment Trusts (REITs) | 1.1 | — | — | — | |||||||||||||
Food & Staples Retailing | 1.1 | — | 2.4 | 1.2 | |||||||||||||
Food Products | 1.2 | — | 0.6 | — | |||||||||||||
Gas Utilities | — | — | 1.1 | 1.6 | |||||||||||||
Health Care Equipment & Supplies | 2.7 | 2.4 | 2.9 | 2.0 | |||||||||||||
Health Care Providers & Services | — | — | — | — | |||||||||||||
Health Care Technology | — | — | — | — | |||||||||||||
Hotels, Restaurants & Leisure | 1.9 | — | — | 1.0 | |||||||||||||
Household Durables | 2.4 | — | — | — | |||||||||||||
Household Products | — | — | — | — | |||||||||||||
Independent Power & Renewable Electricity Producers | 0.5 | 3.9 | 0.7 | 1.2 | |||||||||||||
Industrial Conglomerates | 0.8 | 3.4 | 3.2 | 2.1 | |||||||||||||
Insurance | 6.1 | 6.3 | 4.0 | 6.1 |
The accompanying notes are an integral part of these financial statements.
140 Semi-Annual Report
Lazard International Equity Value Portfolio | Lazard International Quality Growth Portfolio | Lazard International Small Cap Equity Portfolio | Lazard International Strategic Equity Portfolio | Lazard Managed Equity Volatility Portfolio | |||||||||||||||
3.0 | % | — | % | — | % | 4.1 | % | 1.8 | % | ||||||||||
— | — | 1.1 | 0.6 | — | |||||||||||||||
— | — | 0.9 | 1.2 | — | |||||||||||||||
5.6 | — | 1.8 | — | 0.3 | |||||||||||||||
4.0 | — | — | 4.5 | — | |||||||||||||||
12.8 | 7.5 | 3.5 | 6.5 | 3.0 | |||||||||||||||
10.2 | 5.2 | 3.2 | 7.9 | 0.9 | |||||||||||||||
— | 2.9 | — | 1.6 | 1.7 | |||||||||||||||
— | 2.6 | 3.2 | 2.1 | — | |||||||||||||||
1.3 | 5.9 | 7.9 | 3.4 | 1.9 | |||||||||||||||
6.2 | — | 4.1 | 2.2 | 0.7 | |||||||||||||||
— | — | 2.3 | — | 1.5 | |||||||||||||||
— | — | — | — | 0.6 | |||||||||||||||
— | — | 1.6 | — | 0.9 | |||||||||||||||
— | — | — | — | 0.5 | |||||||||||||||
— | — | — | — | — | |||||||||||||||
— | — | — | — | 0.5 | |||||||||||||||
— | — | — | — | 1.0 | |||||||||||||||
— | — | 1.1 | — | 0.1 | |||||||||||||||
— | — | 1.0 | — | 4.5 | |||||||||||||||
— | — | — | 2.6 | 3.2 | |||||||||||||||
— | 2.1 | 1.0 | 4.6 | 0.3 | |||||||||||||||
— | 2.4 | 0.7 | 1.0 | 1.1 | |||||||||||||||
2.4 | 3.3 | 1.0 | 4.6 | 0.5 | |||||||||||||||
— | — | 2.3 | — | 5.2 | |||||||||||||||
3.7 | 1.9 | 1.2 | 1.1 | 6.5 | |||||||||||||||
— | — | 2.1 | 0.8 | 5.3 | |||||||||||||||
— | — | 1.1 | — | 1.9 | |||||||||||||||
— | 4.1 | 1.1 | 2.4 | 2.8 | |||||||||||||||
— | — | 0.8 | — | 2.8 | |||||||||||||||
— | — | 0.7 | — | — | |||||||||||||||
6.5 | — | 1.0 | 3.1 | 2.6 | |||||||||||||||
3.2 | — | 2.0 | — | — | |||||||||||||||
— | 0.9 | 0.9 | — | 4.9 | |||||||||||||||
— | — | 0.6 | 0.9 | 0.6 | |||||||||||||||
6.2 | — | — | — | 0.3 | |||||||||||||||
6.1 | 8.2 | 1.4 | 6.5 | 2.7 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 141
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country (continued):
Industry† | Lazard International Equity Advantage Portfolio | Lazard International Equity Concentrated Portfolio | Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | |||||||||||||
Interactive Media & Services | — | % | 5.9 | % | 1.2 | % | 3.9 | % | |||||||||
Internet & Direct Marketing Retail | 0.1 | — | — | 0.7 | |||||||||||||
IT Services | 1.0 | 4.4 | 3.0 | 2.8 | |||||||||||||
Leisure Products | 0.7 | — | 1.9 | 1.4 | |||||||||||||
Life Sciences Tools & Services | 1.8 | — | — | — | |||||||||||||
Machinery | 2.1 | — | 4.1 | 4.5 | |||||||||||||
Marine | 1.0 | — | — | — | |||||||||||||
Media | 0.5 | — | 1.3 | — | |||||||||||||
Metals & Mining | 4.2 | 5.7 | 1.4 | 2.3 | |||||||||||||
Multiline Retail | 0.2 | 7.9 | 1.0 | 2.2 | |||||||||||||
Multi-Utilities | — | 4.9 | 2.3 | 2.0 | |||||||||||||
Oil, Gas & Consumable Fuels | 2.8 | 3.5 | 4.4 | 6.1 | |||||||||||||
Personal Products | 3.8 | — | 1.6 | 2.6 | |||||||||||||
Pharmaceuticals | 8.5 | 4.9 | 5.7 | 5.4 | |||||||||||||
Professional Services | 1.4 | 4.1 | 4.1 | 3.6 | |||||||||||||
Real Estate Management & Development | 1.8 | 5.3 | 3.3 | 1.7 | |||||||||||||
Road & Rail | — | — | — | — | |||||||||||||
Semiconductors & Semiconductor Equipment | 3.9 | — | 1.1 | — | |||||||||||||
Software | 1.7 | — | — | — | |||||||||||||
Specialty Retail | 1.2 | — | 1.5 | 2.1 | |||||||||||||
Technology Hardware, Storage & Peripherals | 0.6 | 5.4 | 1.4 | 3.1 | |||||||||||||
Textiles, Apparel & Luxury Goods | 1.0 | — | 1.8 | 1.9 | |||||||||||||
Thrifts & Mortgage Finance | — | — | — | — | |||||||||||||
Tobacco | 2.7 | — | — | — | |||||||||||||
Trading Companies & Distributors | 0.5 | 4.8 | 1.6 | 1.4 | |||||||||||||
Water Utilities | — | — | — | 0.6 | |||||||||||||
Wireless Telecommunication Services | 3.5 | — | — | — | |||||||||||||
Subtotal | 100.5 | 95.0 | 96.6 | 98.5 | |||||||||||||
Short-Term Investments | 0.7 | 4.8 | 3.2 | 1.3 | |||||||||||||
Total Investments | 101.2 | % | 99.8 | % | 99.8 | % | 99.8 | % |
† | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
142 Semi-Annual Report
Lazard International Equity Value Portfolio | Lazard International Quality Growth Portfolio | Lazard International Small Cap Equity Portfolio | Lazard International Strategic Equity Portfolio | Lazard Managed Equity Volatility Portfolio | ||||||||||||||||
— | % | 6.1 | % | 1.2 | % | 0.4 | % | 0.2 | % | |||||||||||
2.4 | 3.6 | 0.9 | 1.4 | — | ||||||||||||||||
— | — | 3.7 | 2.6 | 2.8 | ||||||||||||||||
2.0 | 3.0 | 1.4 | 2.3 | 0.2 | ||||||||||||||||
— | — | — | — | 2.6 | ||||||||||||||||
3.1 | — | 4.9 | 4.2 | 0.9 | ||||||||||||||||
— | — | — | — | 0.2 | ||||||||||||||||
— | — | 1.6 | 1.7 | 1.3 | ||||||||||||||||
1.6 | — | 2.5 | 2.9 | 1.6 | ||||||||||||||||
2.8 | 1.9 | 1.2 | 0.9 | 1.7 | ||||||||||||||||
2.8 | — | — | 2.0 | 1.8 | ||||||||||||||||
3.8 | — | 1.6 | 1.6 | 0.7 | ||||||||||||||||
— | 4.9 | — | — | — | ||||||||||||||||
3.6 | 1.9 | 3.6 | 2.8 | 8.0 | ||||||||||||||||
— | 8.1 | 4.0 | 4.6 | 2.6 | ||||||||||||||||
— | — | 6.3 | 2.5 | 1.2 | ||||||||||||||||
— | — | — | — | 0.5 | ||||||||||||||||
— | 8.4 | 2.5 | 1.6 | 0.9 | ||||||||||||||||
— | 4.4 | 5.7 | — | 3.7 | ||||||||||||||||
— | 2.6 | 2.8 | 2.0 | 1.7 | ||||||||||||||||
— | — | 0.9 | — | 0.3 | ||||||||||||||||
3.9 | 3.3 | — | 0.8 | 0.3 | ||||||||||||||||
— | — | — | 1.1 | — | ||||||||||||||||
— | — | — | — | 1.4 | ||||||||||||||||
— | 3.3 | 2.1 | — | 0.4 | ||||||||||||||||
— | — | 1.4 | — | 0.3 | ||||||||||||||||
3.5 | — | — | — | 0.6 | ||||||||||||||||
100.7 | 98.5 | 97.9 | 97.1 | 96.5 | ||||||||||||||||
0.6 | 1.6 | 1.9 | 2.4 | 3.5 | ||||||||||||||||
101.3 | % | 100.1 | % | 99.8 | % | 99.5 | % | 100 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 143
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country (concluded):
Industry† | Lazard US Equity Concentrated Portfolio | Lazard US Equity Focus Portfolio | Lazard US Small- Mid Cap Equity Portfolio | Lazard US Sustainable Equity Portfolio | ||||||||||||
Common & Preferred Stocks | ||||||||||||||||
Aerospace & Defense | — | % | — | % | 2.1 | % | — | % | ||||||||
Air Freight & Logistics | — | — | 0.8 | — | ||||||||||||
Airlines | — | — | 0.8 | — | ||||||||||||
Auto Components | — | 1.2 | 0.8 | 1.0 | ||||||||||||
Banks | — | 6.0 | 7.8 | 6.7 | ||||||||||||
Biotechnology | — | — | 2.9 | — | ||||||||||||
Building Products | 3.1 | — | 2.9 | — | ||||||||||||
Capital Markets | 8.5 | 4.3 | 1.1 | 4.5 | ||||||||||||
Chemicals | — | — | 2.3 | 1.7 | ||||||||||||
Commercial Services & Suppliers | 4.4 | 3.9 | — | 3.3 | ||||||||||||
Communications Equipment | — | 2.5 | 2.9 | 2.0 | ||||||||||||
Construction & Engineering | — | — | 0.8 | — | ||||||||||||
Construction Materials | 3.3 | — | 1.2 | — | ||||||||||||
Consumer Finance | — | 4.5 | — | — | ||||||||||||
Containers & Packaging | — | — | 2.2 | 2.2 | ||||||||||||
Distributors | 2.4 | — | — | — | ||||||||||||
Diversified Financial Services | — | — | 1.2 | — | ||||||||||||
Electrical Equipment | — | — | 1.9 | 2.9 | ||||||||||||
Electronic Equipment, Instruments & Components | 3.4 | — | — | — | ||||||||||||
Energy Equipment & Services | — | — | 2.4 | — | ||||||||||||
Entertainment | 0.7 | — | — | 1.7 | ||||||||||||
Equity Real Estate Investment Trusts (REITs) | 10.1 | — | 7.6 | 2.3 | ||||||||||||
Food & Staples Retailing | 3.1 | 2.6 | 1.6 | 1.4 | ||||||||||||
Food Products | — | — | 1.0 | 0.8 | ||||||||||||
Gas Utilities | — | — | 1.5 | — | ||||||||||||
Health Care Equipment & Supplies | 10.9 | 9.5 | 1.3 | 8.6 | ||||||||||||
Health Care Providers & Services | — | — | 2.2 | 5.1 | ||||||||||||
Hotels, Restaurants & Leisure | 5.7 | 6.2 | 3.0 | 2.0 | ||||||||||||
Household Durables | — | — | 0.9 | — | ||||||||||||
Household Products | — | — | — | 2.1 | ||||||||||||
Industrial Conglomerates | — | 4.0 | 1.4 | — | ||||||||||||
Insurance | — | 3.8 | 4.4 | — | ||||||||||||
Interactive Media & Services | 8.3 | 8.6 | 2.1 | — | ||||||||||||
IT Services | 12.9 | 5.5 | 2.3 | 6.9 | ||||||||||||
Leisure Products | — | — | 2.4 | — | ||||||||||||
Life Sciences Tools & Services | 2.2 | 2.5 | 5.6 | 5.3 | ||||||||||||
Machinery | — | — | 4.1 | 3.7 | ||||||||||||
Metals & Mining | — | — | 1.0 | — | ||||||||||||
Multiline Retail | 3.0 | 3.5 | 1.4 | 2.7 |
The accompanying notes are an integral part of these financial statements.
144 Semi-Annual Report
Industry† | Lazard US Equity Concentrated Portfolio | Lazard US Equity Focus Portfolio | Lazard US Small- Mid Cap Equity Portfolio | Lazard US Sustainable Equity Portfolio | ||||||||||||
Oil, Gas & Consumable Fuels | — | % | — | % | 1.7 | % | — | % | ||||||||
Paper & Forest Products | — | — | 1.2 | — | ||||||||||||
Pharmaceuticals | — | 5.2 | 1.3 | 4.5 | ||||||||||||
Professional Services | 2.0 | — | 0.9 | — | ||||||||||||
Road & Rail | 1.8 | 4.1 | — | 2.3 | ||||||||||||
Semiconductors & Semiconductor Equipment | 10.9 | 4.8 | 2.4 | 6.1 | ||||||||||||
Software | — | 11.1 | 8.6 | 13.5 | ||||||||||||
Specialty Retail | 2.9 | 4.4 | 1.9 | 5.0 | ||||||||||||
Textiles, Apparel & Luxury Goods | — | — | 0.9 | — | ||||||||||||
Trading Companies & Distributors | — | — | 0.8 | — | ||||||||||||
Subtotal | 99.6 | 98.2 | 97.6 | 98.3 | ||||||||||||
Short-Term Investments | 0.4 | 2.0 | — | 1.6 | ||||||||||||
Total Investments | 100.0 | % | 100.2 | % | 97.6 | % | 99.9 | % |
† | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 145
The Lazard Funds, Inc. Statements of Assets and Liabilities (unaudited)
June 30, 2021 | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | | |||||||
ASSETS | ||||||||||
Investments in securities, at fair value | $ | 219,107,966 | $ | 193,923,007 | ||||||
Foreign currency, at fair value | 226 | 141,103 | ||||||||
Receivables for: | ||||||||||
Dividends | 174,938 | 543,474 | ||||||||
Investments sold | — | — | ||||||||
Capital stock sold | 176,075 | 97,693 | ||||||||
Prepaid expenses | — | 1,127 | ||||||||
Total assets | 219,459,205 | 194,706,404 | ||||||||
LIABILITIES | ||||||||||
Due to custodian | — | — | ||||||||
Payables for: | ||||||||||
Foreign capital gains taxes | 357,568 | 229,348 | ||||||||
Management fees | 181,092 | 160,856 | ||||||||
Accrued custodian fees | 86,094 | 60,939 | ||||||||
Accrued professional services | 31,660 | 22,091 | ||||||||
Accrued directors’ fees | 4,670 | 4,021 | ||||||||
Accrued distribution fees | 2,096 | 490 | ||||||||
Investments purchased | 423,915 | 39 | ||||||||
Capital stock redeemed | 72,186 | 256,359 | ||||||||
Other accrued expenses and payables | 36,745 | 35,628 | ||||||||
Total liabilities | 1,196,026 | 769,771 | ||||||||
Net assets | $ | 218,263,179 | $ | 193,936,633 | ||||||
NET ASSETS | ||||||||||
Paid in capital | $ | 268,333,587 | $ | 143,804,873 | ||||||
Distributable earnings (Accumulated loss) | (50,070,408 | ) | 50,131,760 | |||||||
Net assets | $ | 218,263,179 | $ | 193,936,633 | ||||||
Institutional Shares | ||||||||||
Net assets | $ | 208,232,872 | $ | 190,999,811 | ||||||
Shares of capital stock outstanding* | 11,715,786 | 14,060,818 | ||||||||
Net asset value, offering and redemption price per share | $ | 17.77 | $ | 13.58 | ||||||
Open Shares | ||||||||||
Net assets | $ | 10,030,307 | $ | 2,388,331 | ||||||
Shares of capital stock outstanding* | 568,354 | 176,500 | ||||||||
Net asset value, offering and redemption price per share | $ | 17.65 | $ | 13.53 | ||||||
R6 Shares | ||||||||||
Net assets | — | $ | 548,491 | |||||||
Shares of capital stock outstanding* | — | 40,343 | ||||||||
Net asset value, offering and redemption price per share | — | $ | 13.60 | |||||||
Cost of investments in securities | $ | 158,652,960 | $ | 123,395,974 | ||||||
Cost of foreign currency | $ | 226 | $ | 141,135 |
* | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
The accompanying notes are an integral part of these financial statements.
146 Semi-Annual Report
Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio | Lazard Emerging Markets Strategic Equity Portfolio | Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | |||||||||||||||
$ | 73,877,320 | $ | 4,250,531,581 | $ | 77,742,113 | $ | 103,377,360 | $ | 108,359,294 | ||||||||||
82,104 | 6,065,883 | 8,165 | 19 | 33,934 | |||||||||||||||
192,850 | 19,970,234 | 216,097 | 445,978 | 105,501 | |||||||||||||||
— | 9,399,323 | 1,890,809 | 8 | — | |||||||||||||||
5,813 | 1,748,223 | 61,667 | — | 88,971 | |||||||||||||||
15,349 | — | — | — | — | |||||||||||||||
74,173,436 | 4,287,715,244 | 79,918,851 | 103,823,365 | 108,587,700 | |||||||||||||||
— | 4,599,510 | — | — | — | |||||||||||||||
— | 4,742,682 | 119,274 | — | — | |||||||||||||||
35,405 | 3,580,624 | 48,156 | 67,915 | 58,242 | |||||||||||||||
48,065 | 1,364,118 | 79,889 | 28,455 | 36,794 | |||||||||||||||
19,886 | 168,590 | 39,121 | 24,384 | 25,982 | |||||||||||||||
1,401 | 126,911 | 3,447 | 1,662 | 2,275 | |||||||||||||||
246 | 100,544 | 782 | 27 | 278 | |||||||||||||||
18 | 43,018,671 | 2,418,301 | 248,256 | 8 | |||||||||||||||
46 | 27,574,481 | 1,835 | — | 1,863,193 | |||||||||||||||
4,095 | 1,048,644 | 29,852 | 12,972 | 17,102 | |||||||||||||||
109,162 | 86,324,775 | 2,740,657 | 383,671 | 2,003,874 | |||||||||||||||
$ | 74,064,274 | $ | 4,201,390,469 | $ | 77,178,194 | $ | 103,439,694 | $ | 106,583,826 | ||||||||||
$ | 62,208,085 | $ | 4,323,677,638 | $ | 112,721,428 | $ | 76,772,048 | $ | 68,185,223 | ||||||||||
11,856,189 | (122,287,169 | ) | (35,543,234 | ) | 26,667,646 | 38,398,603 | |||||||||||||
$ | 74,064,274 | $ | 4,201,390,469 | $ | 77,178,194 | $ | 103,439,694 | $ | 106,583,826 | ||||||||||
$ | 73,045,951 | $ | 3,767,681,899 | $ | 73,807,402 | $ | 103,277,442 | $ | 105,195,910 | ||||||||||
4,774,847 | 188,485,294 | 5,108,498 | 8,683,332 | 5,741,557 | |||||||||||||||
$ | 15.30 | $ | 19.99 | $ | 14.45 | $ | 11.89 | $ | 18.32 | ||||||||||
$ | 1,018,323 | $ | 419,009,904 | $ | 3,370,792 | $ | 162,252 | $ | 1,387,916 | ||||||||||
66,658 | 20,366,766 | 232,740 | 13,662 | 75,823 | |||||||||||||||
$ | 15.28 | $ | 20.57 | $ | 14.48 | $ | 11.88 | $ | 18.30 | ||||||||||
— | $ | 14,698,666 | — | — | — | ||||||||||||||
— | 735,035 | — | — | — | |||||||||||||||
— | $ | 20.00 | — | — | — | ||||||||||||||
$ | 67,433,170 | $ | 3,277,672,599 | $ | 68,635,957 | $ | 84,155,364 | $ | 73,594,630 | ||||||||||
$ | 82,113 | $ | 6,065,878 | $ | 8,175 | $ | 19 | $ | 34,085 |
Semi-Annual Report 147
June 30, 2021 | Lazard Global Listed Infrastructure Portfolio | Lazard Global Strategic Equity Portfolio | | |||||||
ASSETS | ||||||||||
Investments in securities, at fair value | $ | 7,590,762,136 | $ | 17,308,712 | ||||||
Non-controlled affiliated issuers, at fair value (Note 5) | 727,636,006 | — | ||||||||
Foreign currency, at fair value | 15,263,926 | 2,321 | ||||||||
Receivables for: | ||||||||||
Dividends | 50,334,052 | 14,335 | ||||||||
Capital stock sold | 16,767,616 | — | ||||||||
Tax reclaims (Note 2b) | 2,876,326 | — | ||||||||
Amount due from Investment Manager (Note 3) | — | 1,604 | ||||||||
Investments sold | — | — | ||||||||
Gross unrealized appreciation on forward currency contracts | 93,901,596 | — | ||||||||
Prepaid expenses | — | — | ||||||||
Total assets | 8,497,541,658 | 17,326,972 | ||||||||
LIABILITIES | ||||||||||
Payables for: | ||||||||||
Management fees | 6,328,994 | — | ||||||||
Accrued custodian fees | 745,302 | 27,966 | ||||||||
Accrued directors’ fees | 93,431 | 1,747 | ||||||||
Accrued distribution fees | 64,716 | 44 | ||||||||
Accrued professional services | 54,103 | 26,415 | ||||||||
Accrued registration fees | 21,921 | 8,770 | ||||||||
Capital stock redeemed | 3,836,303 | 26,085 | ||||||||
Investments purchased | 1,146 | — | ||||||||
Gross unrealized depreciation on forward currency contracts | 20,128 | — | ||||||||
Other accrued expenses and payables | 296,403 | 2,852 | ||||||||
Total liabilities | 11,462,447 | 93,879 | ||||||||
Net assets | $ | 8,486,079,211 | $ | 17,233,093 | ||||||
NET ASSETS | ||||||||||
Paid in capital | $ | 7,771,342,803 | $ | 14,970,826 | ||||||
Distributable earnings (Accumulated loss) | 714,736,408 | 2,262,267 | ||||||||
Net assets | $ | 8,486,079,211 | $ | 17,233,093 | ||||||
Institutional Shares | ||||||||||
Net assets | $ | 8,187,494,818 | $ | 17,004,796 | ||||||
Shares of capital stock outstanding* | 516,271,305 | 1,270,859 | ||||||||
Net asset value, offering and redemption price per share | $ | 15.86 | $ | 13.38 | ||||||
Open Shares | ||||||||||
Net assets | $ | 298,584,393 | $ | 228,297 | ||||||
Shares of capital stock outstanding* | 18,819,629 | 17,181 | ||||||||
Net asset value, offering and redemption price per share | $ | 15.87 | $ | 13.29 | ||||||
R6 Shares | ||||||||||
Net assets | — | — | ||||||||
Shares of capital stock outstanding* | — | — | ||||||||
Net asset value, offering and redemption price per share | — | — | ||||||||
Cost of investments in securities | $ | 6,823,067,289 | $ | 15,795,329 | ||||||
Cost of non-controlled affiliated issuers | $ | 843,268,226 | $ | — | ||||||
Cost of foreign currency | $ | 15,349,538 | $ | 2,332 |
* | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
The accompanying notes are an integral part of these financial statements.
148 Semi-Annual Report
Lazard International Equity Advantage Portfolio | Lazard International Equity Concentrated Portfolio | Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | Lazard International Equity Value Portfolio | |||||||||||||||
$ | 2,934,492 | $ | 2,359,842 | $ | 2,804,494,768 | $ | 87,240,808 | $ | 3,227,237 | ||||||||||
— | — | — | — | — | |||||||||||||||
1,936 | 1 | 2,440,196 | 92,245 | 2,481 | |||||||||||||||
9,766 | 69,861 | 10,753,039 | 299,904 | 15,546 | |||||||||||||||
— | — | 3,056,708 | 124,735 | — | |||||||||||||||
— | — | 5,373,618 | — | — | |||||||||||||||
11,327 | 12,701 | — | — | 8,794 | |||||||||||||||
72,125 | 3 | — | 291,708 | 18,187 | |||||||||||||||
— | — | — | — | — | |||||||||||||||
11,498 | — | — | — | — | |||||||||||||||
3,041,144 | 2,442,408 | 2,826,118,329 | 88,049,400 | 3,272,245 | |||||||||||||||
— | — | 1,753,118 | 47,558 | — | |||||||||||||||
33,653 | 33,465 | 388,872 | 42,348 | 21,543 | |||||||||||||||
1,326 | 2,980 | 31,145 | 2,343 | 1,678 | |||||||||||||||
27 | 84 | 26,611 | 509 | 14 | |||||||||||||||
31,076 | 26,596 | 24,258 | 34,607 | 26,952 | |||||||||||||||
— | 10,728 | 22,470 | 532 | 14,259 | |||||||||||||||
— | — | 522,135 | 48,882 | — | |||||||||||||||
71,164 | — | 13,231,808 | 431,922 | 20,561 | |||||||||||||||
— | — | — | — | — | |||||||||||||||
2,880 | 3,843 | 330,883 | 21,842 | 332 | |||||||||||||||
140,126 | 77,696 | 16,331,300 | 630,543 | 85,339 | |||||||||||||||
$ | 2,901,018 | $ | 2,364,712 | $ | 2,809,787,029 | $ | 87,418,857 | $ | 3,186,906 | ||||||||||
$ | 2,459,072 | $ | 11,808,284 | $ | 2,064,632,324 | $ | 70,423,805 | $ | 3,496,811 | ||||||||||
441,946 | (9,443,572 | ) | 745,154,705 | 16,995,052 | (309,905 | ) | |||||||||||||
$ | 2,901,018 | $ | 2,364,712 | $ | 2,809,787,029 | $ | 87,418,857 | $ | 3,186,906 | ||||||||||
$ | 2,768,069 | $ | 1,970,940 | $ | 2,574,140,109 | $ | 84,947,487 | $ | 3,140,978 | ||||||||||
239,598 | 186,034 | 121,949,843 | 7,033,593 | 306,607 | |||||||||||||||
$ | 11.55 | $ | 10.59 | $ | 21.11 | $ | 12.08 | $ | 10.24 | ||||||||||
$ | 132,949 | $ | 393,772 | $ | 121,149,491 | $ | 2,471,370 | $ | 45,928 | ||||||||||
11,520 | 37,078 | 5,677,101 | 203,888 | 4,486 | |||||||||||||||
$ | 11.54 | $ | 10.62 | $ | 21.34 | $ | 12.12 | $ | 10.24 | ||||||||||
— | — | $ | 114,497,429 | — | — | ||||||||||||||
— | — | 5,431,343 | — | — | |||||||||||||||
— | — | $ | 21.08 | — | — | ||||||||||||||
$ | 2,499,423 | $ | 2,049,821 | $ | 2,240,555,917 | $ | 70,190,391 | $ | 2,816,104 | ||||||||||
— | — | — | — | — | |||||||||||||||
$ | 1,943 | $ | 1 | $ | 2,441,495 | $ | 92,661 | $ | 2,493 |
Semi-Annual Report 149
June 30, 2021 | Lazard International Quality Growth Portfolio | Lazard International Small Cap Equity Portfolio | | |||||||
ASSETS | ||||||||||
Investments in securities, at fair value | $ | 29,119,190 | $ | 40,504,159 | ||||||
Cash | — | — | ||||||||
Foreign currency, at fair value | 2,800 | 13,516 | ||||||||
Receivables for: | ||||||||||
Investments sold | 7 | 21,936 | ||||||||
Dividends | 27,772 | 210,785 | ||||||||
Capital stock sold | 25 | 39,492 | ||||||||
Prepaid expenses | — | — | ||||||||
Total assets | 29,149,794 | 40,789,888 | ||||||||
LIABILITIES | ||||||||||
Payables for: | ||||||||||
Management fees | 7,163 | 20,734 | ||||||||
Foreign capital gains taxes | — | — | ||||||||
Accrued custodian fees | 22,078 | 44,339 | ||||||||
Accrued shareholders’ reports | 4,710 | 5,140 | ||||||||
Accrued distribution fees | 67 | 3,015 | ||||||||
Accrued directors’ fees | 1,559 | 2,182 | ||||||||
Accrued registration fees | 8,363 | 5,805 | ||||||||
Accrued professional services | 25,212 | 41,224 | ||||||||
Investments purchased | — | 39,941 | ||||||||
Capital stock redeemed | — | 32,438 | ||||||||
Other accrued expenses and payables | 1,589 | 10,135 | ||||||||
Total liabilities | 70,741 | 204,953 | ||||||||
Net assets | $ | 29,079,053 | $ | 40,584,935 | ||||||
NET ASSETS | ||||||||||
Paid in capital | $ | 24,133,121 | $ | 28,111,079 | ||||||
Distributable earnings (Accumulated loss) | 4,945,932 | 12,473,856 | ||||||||
Net assets | $ | 29,079,053 | $ | 40,584,935 | ||||||
Institutional Shares | ||||||||||
Net assets | $ | 28,746,667 | $ | 27,198,602 | ||||||
Shares of capital stock outstanding* | 1,670,234 | 1,799,592 | ||||||||
Net asset value, offering and redemption price per share | $ | 17.21 | $ | 15.11 | ||||||
Open Shares | ||||||||||
Net assets | $ | 332,386 | $ | 13,386,333 | ||||||
Shares of capital stock outstanding* | 19,438 | 886,831 | ||||||||
Net asset value, offering and redemption price per share | $ | 17.10 | $ | 15.09 | ||||||
R6 Shares | ||||||||||
Net assets | — | — | ||||||||
Shares of capital stock outstanding* | — | — | ||||||||
Net asset value, offering and redemption price per share | — | — | ||||||||
Cost of investments in securities | $ | 24,747,417 | $ | 30,384,251 | ||||||
Cost of foreign currency | $ | 2,814 | $ | 13,587 |
* | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
The accompanying notes are an integral part of these financial statements.
150 Semi-Annual Report
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 | |||||||||||||||
$ | 6,516,229,117 | $ | 27,489,769 | $ | 1,962,367,409 | $ | 74,067,218 | $ | 113,785,398 | ||||||||||
— | — | — | — | 180,455 | |||||||||||||||
12,830,256 | 13,501 | — | — | — | |||||||||||||||
22,597,887 | — | — | — | 3,282,130 | |||||||||||||||
18,294,094 | 57,508 | 1,048,324 | 22,152 | 80,349 | |||||||||||||||
6,236,022 | 4,975 | 2,023,881 | 1,812 | 8,241 | |||||||||||||||
— | 12,466 | — | — | — | |||||||||||||||
6,576,187,376 | 27,578,219 | 1,965,439,614 | 74,091,182 | 117,336,573 | |||||||||||||||
4,112,854 | 1,856 | 1,115,637 | 24,820 | 74,667 | |||||||||||||||
1,678,376 | — | — | — | — | |||||||||||||||
593,452 | 38,768 | 144,294 | 27,709 | 33,093 | |||||||||||||||
204,257 | 275 | — | 159 | 5,912 | |||||||||||||||
116,741 | 22 | 8,002 | 295 | 2,567 | |||||||||||||||
71,534 | 2,143 | 12,769 | 3,735 | 2,984 | |||||||||||||||
9,213 | — | 28,934 | 10,830 | 14,466 | |||||||||||||||
1,382 | 28,758 | 37,531 | 73,021 | 30,938 | |||||||||||||||
16,668,482 | 5 | — | — | 388,570 | |||||||||||||||
4,304,655 | 12,421 | 950,161 | — | 160,904 | |||||||||||||||
176,415 | 3,447 | 19,568 | 4,333 | 10,905 | |||||||||||||||
27,937,361 | 87,695 | 2,316,896 | 144,902 | 725,006 | |||||||||||||||
$ | 6,548,250,015 | $ | 27,490,524 | $ | 1,963,122,718 | $ | 73,946,280 | $ | 116,611,567 | ||||||||||
$ | 4,690,916,618 | $ | 24,556,370 | $ | 1,096,253,615 | $ | 46,137,619 | $ | 79,059,892 | ||||||||||
1,857,333,397 | 2,934,154 | 866,869,103 | 27,808,661 | 37,551,675 | |||||||||||||||
$ | 6,548,250,015 | $ | 27,490,524 | $ | 1,963,122,718 | $ | 73,946,280 | $ | 116,611,567 | ||||||||||
$ | 5,904,700,088 | $ | 27,409,083 | $ | 1,924,455,200 | $ | 37,906,079 | $ | 103,573,086 | ||||||||||
326,397,292 | 2,117,321 | 92,055,430 | 2,428,012 | 6,134,675 | |||||||||||||||
$ | 18.09 | $ | 12.95 | $ | 20.91 | $ | 15.61 | $ | 16.88 | ||||||||||
$ | 516,630,798 | $ | 81,441 | $ | 36,142,946 | $ | 1,473,640 | $ | 12,221,848 | ||||||||||
28,333,489 | 6,303 | 1,717,594 | 94,006 | 788,966 | |||||||||||||||
$ | 18.23 | $ | 12.92 | $ | 21.04 | $ | 15.68 | $ | 15.49 | ||||||||||
$ | 126,919,129 | — | $ | 2,524,572 | $ | 34,566,561 | $ | 816,633 | |||||||||||
7,009,576 | — | 120,459 | 2,213,164 | 48,366 | |||||||||||||||
$ | 18.11 | — | $ | 20.96 | $ | 15.62 | $ | 16.88 | |||||||||||
$ | 4,877,578,633 | $ | 25,259,017 | $ | 1,263,050,403 | $ | 49,503,675 | $ | 84,807,973 | ||||||||||
$ | 12,879,806 | $ | 13,558 | — | — | — |
Semi-Annual Report 151
June 30, 2021 | Lazard US Sustainable Equity Portfolio | |||
ASSETS | ||||
Investments in securities, at fair value | $ | 13,584,999 | ||
Receivables for: | ||||
Investments sold | 15,099 | |||
Amount due from Investment Manager (Note 3) | 11,469 | |||
Dividends | 4,696 | |||
Prepaid expenses | 27,188 | |||
Total assets | 13,643,451 | |||
LIABILITIES | ||||
Payables for: | ||||
Accrued professional services | 25,370 | |||
Accrued custodian fees | 20,205 | |||
Accrued directors’ fees | 1,103 | |||
Accrued distribution fees | 78 | |||
Other accrued expenses and payables | 1,593 | |||
Total liabilities | 48,349 | |||
Net assets | $ | 13,595,102 | ||
NET ASSETS | ||||
Paid in capital | $ | 10,107,777 | ||
Distributable earnings (Accumulated loss) | 3,487,325 | |||
Net assets | $ | 13,595,102 | ||
Institutional Shares | ||||
Net assets | $ | 13,182,344 | ||
Shares of capital stock outstanding* | 942,026 | |||
Net asset value, offering and redemption price per share | $ | 13.99 | ||
Open Shares | ||||
Net assets | $ | 412,758 | ||
Shares of capital stock outstanding* | 29,505 | |||
Net asset value, offering and redemption price per share | $ | 13.99 | ||
Cost of investments in securities | $ | 10,316,570 |
* | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
The accompanying notes are an integral part of these financial statements.
152 Semi-Annual Report
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Semi-Annual Report 153
The Lazard Funds, Inc. Statements of Operations (unaudited)
For the Six Months Ended June 30, 2021 | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | |||||||||
Investment Income (Loss) | |||||||||||
Income | |||||||||||
Dividends* | $ | 1,645,590 | $ | 1,986,027 | |||||||
Expenses | |||||||||||
Management fees (Note 3) | 1,088,414 | 1,027,323 | |||||||||
Custodian fees | 65,093 | 51,552 | |||||||||
Distribution fees (Open Shares) | 12,724 | 2,930 | |||||||||
Shareholders’ reports | 15,170 | 11,254 | |||||||||
Administration fees | 24,435 | 25,150 | |||||||||
Professional services | 23,879 | 30,010 | |||||||||
Directors’ fees and expenses | 7,430 | 6,594 | |||||||||
Shareholders’ services | 10,911 | 8,954 | |||||||||
Registration fees | 18,661 | 16,802 | |||||||||
Other^ | 4,983 | 9,066 | |||||||||
Total gross expenses | 1,271,700 | 1,189,635 | |||||||||
Management fees waived and expenses reimbursed | (7,543 | ) | (1,958 | ) | |||||||
Total net expenses | 1,264,157 | 1,187,677 | |||||||||
Net investment income (loss) | 381,433 | 798,350 | |||||||||
Net Realized and Unrealized Gain (Loss) | |||||||||||
Net realized gain (loss) on: | |||||||||||
Investments** | 4,816,187 | 6,058,874 | |||||||||
Foreign currency transactions | (12,722 | ) | (56,888 | ) | |||||||
Total net realized gain (loss) | 4,803,465 | 6,001,986 | |||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||
Investments† | (214,834 | ) | 534,501 | ||||||||
Foreign currency translations | (412 | ) | (733 | ) | |||||||
Total net change in unrealized appreciation (depreciation) | (215,246 | ) | 533,768 | ||||||||
Net realized and unrealized gain (loss) | 4,588,219 | 6,535,754 | |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 4,969,652 | $ | 7,334,104 | |||||||
* | Net of foreign withholding taxes of | $ | 262,794 | $ | 298,645 | ||||||
** | Net of foreign capital gains taxes of | $ | 79,316 | $ | 25,062 | ||||||
† | Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of | $ | (296,457 | ) | $ | (99,791 | ) | ||||
^ | Includes interest on line of credit of | $ | — | $ | 1,010 |
The accompanying notes are an integral part of these financial statements.
154 Semi-Annual Report
Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio | Lazard Emerging Markets Strategic Equity Portfolio | Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | ||||||||||||||||||||
$ | 708,934 | $ | 75,793,097 | $ | 795,630 | $ | 1,455,043 | $ | 738,646 | |||||||||||||||
215,035 | 21,785,650 | 391,653 | 400,178 | 328,665 | ||||||||||||||||||||
46,695 | 946,786 | 56,820 | 23,782 | 26,434 | ||||||||||||||||||||
2,367 | 526,646 | 4,883 | 169 | 1,548 | ||||||||||||||||||||
2,848 | 356,271 | 13,274 | 2,543 | 3,536 | ||||||||||||||||||||
14,247 | 228,744 | 15,725 | 17,082 | 17,150 | ||||||||||||||||||||
17,847 | 182,505 | 37,679 | 22,267 | 22,726 | ||||||||||||||||||||
2,706 | 165,447 | 4,380 | 3,623 | 4,355 | ||||||||||||||||||||
5,339 | 142,481 | 8,555 | 6,082 | 6,316 | ||||||||||||||||||||
17,759 | 23,133 | 18,928 | 16,284 | 18,285 | ||||||||||||||||||||
3,450 | 110,507 | 6,927 | 3,782 | 4,435 | ||||||||||||||||||||
328,293 | 24,468,170 | 558,824 | 495,792 | 433,450 | ||||||||||||||||||||
(59,225 | ) | (1,220 | ) | (84,084 | ) | (19,943 | ) | (1,927 | ) | |||||||||||||||
269,068 | 24,466,950 | 474,740 | 475,849 | 431,523 | ||||||||||||||||||||
439,866 | 51,326,147 | 320,890 | 979,194 | 307,123 | ||||||||||||||||||||
4,473,777 | 282,656,157 | 10,747,617 | 8,827,691 | 2,838,030 | ||||||||||||||||||||
(50,002 | ) | (980,366 | ) | (78,131 | ) | (2,481 | ) | 1,738 | ||||||||||||||||
4,423,775 | 281,675,791 | 10,669,486 | 8,825,210 | 2,839,768 | ||||||||||||||||||||
429,867 | 118,249,623 | (7,288,919 | ) | 5,920,129 | 8,590,261 | |||||||||||||||||||
(957 | ) | 150,763 | (2,190 | ) | (5,452 | ) | (2,207 | ) | ||||||||||||||||
428,910 | 118,400,386 | (7,291,109 | ) | 5,914,677 | 8,588,054 | |||||||||||||||||||
4,852,685 | 400,076,177 | 3,378,377 | 14,739,887 | 11,427,822 | ||||||||||||||||||||
$ | 5,292,551 | $ | 451,402,324 | $ | 3,699,267 | $ | 15,719,081 | $ | 11,734,945 | |||||||||||||||
$ | 88,956 | $ | 12,345,289 | $ | 132,555 | $ | 120,099 | $ | 47,642 | |||||||||||||||
$ | — | $ | 2,633,438 | $ | 132,893 | $ | — | $ | — | |||||||||||||||
$ | — | $ | (467,764 | ) | $ | (4,392 | ) | $ | — | $ | — | |||||||||||||
$ | 512 | $ | 341 | $ | 386 | $ | 10 | $ | — |
Semi-Annual Report 155
For the Six Months Ended June 30, 2021 | Lazard Global Listed Infrastructure Portfolio | Lazard Global Strategic Equity Portfolio | |||||||||
Investment Income (Loss) | |||||||||||
Income | |||||||||||
Dividends# | |||||||||||
Unaffiliated issuers | $ | 148,463,320 | $ | 70,868 | |||||||
Non-controlled affiliated issuers (Note 5) | 15,249,352 | — | |||||||||
Non-cash dividends | 12,283,236 | — | |||||||||
Total investment income* | 175,995,908 | 70,868 | |||||||||
Expenses | |||||||||||
Management fees (Note 3) | 35,730,485 | 38,370 | |||||||||
Custodian fees | 566,529 | 24,180 | |||||||||
Administration fees | 370,585 | 11,469 | |||||||||
Distribution fees (Open Shares) | 363,665 | 243 | |||||||||
Professional services | 311,584 | 23,151 | |||||||||
Shareholders’ services | 250,600 | 4,633 | |||||||||
Shareholders’ reports | 243,973 | 2,687 | |||||||||
Directors’ fees and expenses | 189,825 | 2,575 | |||||||||
Registration fees | 81,509 | 20,049 | |||||||||
Other^ | 124,443 | 48 | |||||||||
Total gross expenses | 38,233,198 | 127,405 | |||||||||
Management fees waived and expenses reimbursed | — | (79,080 | ) | ||||||||
Total net expenses | 38,233,198 | 48,325 | |||||||||
Net investment income (loss) | 137,762,710 | 22,543 | |||||||||
Net Realized and Unrealized Gain (Loss) | |||||||||||
Net realized gain (loss) on: | |||||||||||
Investments** | 131,124,950 | 682,583 | |||||||||
Foreign currency transactions | (575,786 | ) | 3,506 | ||||||||
Forward currency contracts | (42,632,768 | ) | — | ||||||||
Total net realized gain (loss) | 87,916,396 | 686,089 | |||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||
Investments† | 280,355,176 | 244,800 | |||||||||
Non-controlled affiliated issuers | 8,616,940 | — | |||||||||
Foreign currency translations | (1,360,043 | ) | (331 | ) | |||||||
Forward currency contracts | 150,022,070 | — | |||||||||
Total net change in unrealized appreciation (depreciation) | 437,634,143 | 244,469 | |||||||||
Net realized and unrealized gain (loss) | 525,550,539 | 930,558 | |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 663,313,249 | $ | 953,101 | |||||||
*# | Net of foreign withholding taxes of | $ | (9,580,231 | ) | $ | 5,948 | |||||
** | Net of foreign capital gains taxes of | $ | — | $ | — | ||||||
† | Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of | $ | — | $ | — | ||||||
^ | Includes interest on line of credit of | $ | — | $ | 24 |
# | Dividend income for Lazard Global Listed Infrastructure Portfolio includes $20,893,921 of refunds received as a result of European Union dividend withholding tax reclaim filings. The amount of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $11,313,690. Refer to Note 2b in the Notes to Financial Statements for further information. |
The accompanying notes are an integral part of these financial statements.
156 Semi-Annual Report
Lazard International Equity Advantage Portfolio | Lazard International Equity Concentrated Portfolio | Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | Lazard International Equity Value Portfolio | ||||||||||||||||||||
$ | 54,858 | $ | 77,930 | $ | 57,525,500 | $ | 1,481,447 | $ | 47,074 | |||||||||||||||
— | — | — | — | — | ||||||||||||||||||||
— | — | — | — | 5,929 | ||||||||||||||||||||
54,858 | 77,930 | 57,525,500 | 1,481,447 | 53,003 | ||||||||||||||||||||
8,964 | 34,734 | 10,763,411 | 292,090 | 12,114 | ||||||||||||||||||||
26,601 | 24,764 | 314,097 | 35,302 | 18,170 | ||||||||||||||||||||
11,002 | 11,372 | 167,993 | 16,447 | 11,019 | ||||||||||||||||||||
158 | 481 | 151,810 | 3,481 | 55 | ||||||||||||||||||||
16,608 | 22,740 | 122,454 | 21,599 | 19,781 | ||||||||||||||||||||
4,488 | 4,797 | 77,643 | 7,127 | 4,547 | ||||||||||||||||||||
2,530 | 3,623 | 154,852 | 8,816 | 2,451 | ||||||||||||||||||||
2,553 | 4,489 | 67,125 | 4,681 | 2,754 | ||||||||||||||||||||
18,896 | 19,937 | 50,633 | 8,907 | 11,008 | ||||||||||||||||||||
13 | 347 | 71,237 | 6,031 | 7 | ||||||||||||||||||||
91,813 | 127,284 | 11,941,255 | 404,481 | 81,906 | ||||||||||||||||||||
(79,230 | ) | (87,379 | ) | (12,460 | ) | (2,108 | ) | (67,459 | ) | |||||||||||||||
12,583 | 39,905 | 11,928,795 | 402,373 | 14,447 | ||||||||||||||||||||
42,275 | 38,025 | 45,596,705 | 1,079,074 | 38,556 | ||||||||||||||||||||
248,486 | 2,419,585 | 193,369,830 | 2,719,967 | 198,164 | ||||||||||||||||||||
(68 | ) | 7,462 | (234,028 | ) | 3,248 | (1,725 | ) | |||||||||||||||||
— | — | — | — | — | ||||||||||||||||||||
248,418 | 2,427,047 | 193,135,802 | 2,723,215 | 196,439 | ||||||||||||||||||||
18,774 | (1,917,831 | ) | (89,808,098 | ) | 502,836 | 26,383 | ||||||||||||||||||
— | — | — | — | — | ||||||||||||||||||||
(324 | ) | (2,342 | ) | (323,352 | ) | (7,919 | ) | (454 | ) | |||||||||||||||
— | — | — | — | — | ||||||||||||||||||||
18,450 | (1,920,173 | ) | (90,131,450 | ) | 494,917 | 25,929 | ||||||||||||||||||
266,868 | 506,874 | 103,004,352 | 3,218,132 | 222,368 | ||||||||||||||||||||
$ | 309,143 | $ | 544,899 | $ | 148,601,057 | $ | 4,297,206 | $ | 260,924 | |||||||||||||||
$ | 5,920 | $ | 11,010 | $ | (1,465,218 | ) | $ | 155,570 | $ | 6,270 | ||||||||||||||
$ | — | $ | — | $ | 13,498 | $ | — | $ | — | |||||||||||||||
$ | — | $ | — | $ | (18,012 | ) | $ | (10,631 | ) | $ | — | |||||||||||||
$ | — | $ | 215 | $ | 2,257 | $ | 174 | $ | — |
# | Dividend income for Lazard International Equity Portfolio includes $6,423,761 of refunds received as a result of European Union dividend withholding tax reclaim filings. The amount of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $4,958,543. Refer to Note 2b in the Notes to Financial Statements for further information. |
Semi-Annual Report 157
For the Six Months Ended June 30, 2021 | Lazard International Quality Growth Portfolio | Lazard International Small Cap Equity Portfolio | ||||||||||
Investment Income (Loss) | ||||||||||||
Income | ||||||||||||
Dividends*# | $ | 189,673 | $ | 403,013 | ||||||||
Expenses | ||||||||||||
Management fees (Note 3) | 91,241 | 150,937 | ||||||||||
Distribution fees (Open Shares) | 405 | 16,309 | ||||||||||
Custodian fees | 21,693 | 38,844 | ||||||||||
Administration fees | 12,350 | 13,345 | ||||||||||
Professional services | 20,330 | 20,378 | ||||||||||
Shareholders’ reports | 3,605 | 5,705 | ||||||||||
Directors’ fees and expenses | 2,847 | 3,854 | ||||||||||
Shareholders’ services | 4,136 | 6,170 | ||||||||||
Registration fees | 15,835 | 15,895 | ||||||||||
Amortization of offering costs (Note 2(f)) | — | — | ||||||||||
Other^ | 2,742 | 3,068 | ||||||||||
Total gross expenses | 175,184 | 274,505 | ||||||||||
Management fees waived and expenses reimbursed | (71,327 | ) | (28,475 | ) | ||||||||
Total net expenses | 103,857 | 246,030 | ||||||||||
Net investment income (loss) | 85,816 | 156,983 | ||||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) on: | ||||||||||||
Investments** | 545,518 | 3,682,301 | ||||||||||
Foreign currency transactions | (319 | ) | (9,927 | ) | ||||||||
Total net realized gain (loss) | 545,199 | 3,672,374 | ||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||
Investments† | 1,933,185 | 660,971 | ||||||||||
Foreign currency translations | (487 | ) | (4,097 | ) | ||||||||
Total net change in unrealized appreciation (depreciation) | 1,932,698 | 656,874 | ||||||||||
Net realized and unrealized gain (loss) | 2,477,897 | 4,329,248 | ||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 2,563,713 | $ | 4,486,231 | ||||||||
*# | Net of foreign withholding taxes of | $ | 23,641 | $ | 41,233 | |||||||
** | Net of foreign capital gains taxes of | $ | — | $ | 8,681 | |||||||
† | Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of | $ | — | $ | 8,994 | |||||||
^ | Includes interest on line of credit of | $ | 4 | $ | 167 |
# | Dividend income for Lazard International Small Cap Equity Portfolio includes $61,281 of refunds received as a result of European Union dividend withholding tax reclaim filings. The amount of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $102,514. Refer to Note 2b in the Notes to Financial Statements for further information. |
The accompanying notes are an integral part of these financial statements.
158 Semi-Annual Report
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 | ||||||||||||||||||||
$ | 117,209,121 | $ | 358,102 | $ | 11,292,150 | $ | 409,954 | $ | 504,021 | |||||||||||||||
23,228,982 | 78,214 | 6,706,509 | 173,455 | 426,846 | ||||||||||||||||||||
644,138 | 96 | 43,791 | 1,708 | 14,938 | ||||||||||||||||||||
484,446 | 28,702 | 109,960 | 20,318 | 23,584 | ||||||||||||||||||||
302,235 | 12,459 | 120,513 | 16,251 | 21,256 | ||||||||||||||||||||
202,762 | 20,364 | 80,644 | 42,185 | 23,675 | ||||||||||||||||||||
168,049 | 3,268 | 37,366 | 4,200 | 7,146 | ||||||||||||||||||||
141,839 | 3,129 | 35,210 | 3,662 | 5,117 | ||||||||||||||||||||
129,085 | 4,763 | 52,919 | 6,233 | 8,210 | ||||||||||||||||||||
46,753 | 16,482 | 58,349 | 20,899 | 30,246 | ||||||||||||||||||||
— | — | — | — | 10,707 | ||||||||||||||||||||
89,987 | 3,223 | 32,284 | 3,482 | 5,370 | ||||||||||||||||||||
25,438,276 | 170,700 | 7,277,545 | 292,393 | 577,095 | ||||||||||||||||||||
(2,542 | ) | (72,261 | ) | (1,516 | ) | (69,677 | ) | (11,644 | ) | |||||||||||||||
25,435,734 | 98,439 | 7,276,029 | 222,716 | 565,451 | ||||||||||||||||||||
91,773,387 | 259,663 | 4,016,121 | 187,238 | (61,430 | ) | |||||||||||||||||||
221,636,923 | 1,611,145 | 144,031,803 | 1,467,385 | 13,603,798 | ||||||||||||||||||||
279,997 | (1,207 | ) | — | — | — | |||||||||||||||||||
221,916,920 | 1,609,938 | 144,031,803 | 1,467,385 | 13,603,798 | ||||||||||||||||||||
127,182,025 | 537,096 | 131,621,474 | 8,178,185 | 3,733,205 | ||||||||||||||||||||
(569,580 | ) | (1,471 | ) | — | — | — | ||||||||||||||||||
126,612,445 | 535,625 | 131,621,474 | 8,178,185 | 3,733,205 | ||||||||||||||||||||
348,529,365 | 2,145,563 | 275,653,277 | 9,645,570 | 17,337,003 | ||||||||||||||||||||
$ | 440,302,752 | $ | 2,405,226 | $ | 279,669,398 | $ | 9,832,808 | $ | 17,275,573 | |||||||||||||||
$ | (12,496,710 | ) | $ | 25,519 | $ | — | $ | — | $ | — | ||||||||||||||
$ | 13,560 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
$ | 318,958 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
$ | — | $ | 411 | $ | 851 | $ | 9 | $ | — |
# | Dividend income for Lazard International Strategic Equity Portfolio includes $20,466,835 of refunds received as a result of European Union dividend withholding tax reclaim filings. The amount of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $7,970,125. Refer to Note 2b in the Notes to Financial Statements for further information. |
Semi-Annual Report 159
For the Six Months Ended June 30, 2021 | Lazard US Sustainable Equity Portfolio | |||||
Investment Income (Loss) | ||||||
Income | ||||||
Dividends | $ | 78,976 | ||||
Expenses | ||||||
Amortization of offering costs (Note 2(f)) | 65,721 | |||||
Management fees (Note 3) | 37,592 | |||||
Professional services | 25,371 | |||||
Custodian fees | 16,882 | |||||
Administration fees | 9,670 | |||||
Registration fees | 7,407 | |||||
Directors’ fees and expenses | 2,460 | |||||
Shareholders’ reports | 2,027 | |||||
Shareholders’ services | 492 | |||||
Distribution fees (Open Shares) | 395 | |||||
Other | 773 | |||||
Total gross expenses | 168,790 | |||||
Management fees waived and expenses reimbursed | (121,339 | ) | ||||
Total net expenses | 47,451 | |||||
Net investment income (loss) | 31,525 | |||||
Net Realized and Unrealized Gain (Loss) | ||||||
Net realized gain (loss) on Investments | 158,663 | |||||
Total net realized gain (loss) | 158,663 | |||||
Net change in unrealized appreciation (depreciation) on Investments | 1,549,094 | |||||
Total net change in unrealized appreciation (depreciation) | 1,549,094 | |||||
Net realized and unrealized gain (loss) | 1,707,757 | |||||
Net increase (decrease) in net assets resulting from operations | $ | 1,739,282 |
The accompanying notes are an integral part of these financial statements.
160 Semi-Annual Report
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Semi-Annual Report 161
The Lazard Funds, Inc. Statements of Changes in Net Assets (unaudited)
Lazard Developing Markets Equity Portfolio | |||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | ||||||||
Increase (Decrease) in Net Assets | |||||||||
Operations | |||||||||
Net investment income (loss) | $ | 381,433 | $ | 575,171 | |||||
Net realized gain (loss) | 4,803,465 | 930,466 | |||||||
Net change in unrealized appreciation (depreciation) | (215,246 | ) | 19,662,599 | ||||||
Net increase (decrease) in net assets resulting from operations | 4,969,652 | 21,168,236 | |||||||
Distributions to shareholders (Note 2(e)) | |||||||||
Net investment income and net realized gains | |||||||||
Institutional Shares | — | (500,286 | ) | ||||||
Open Shares | — | (23,947 | ) | ||||||
R6 Shares | — | — | |||||||
Net decrease in net assets resulting from distributions | — | (524,233 | ) | ||||||
Capital stock transactions | |||||||||
Net proceeds from sales | |||||||||
Institutional Shares | 36,310,959 | 33,579,728 | |||||||
Open Shares | 1,562,859 | 3,336,260 | |||||||
R6 Shares | — | — | |||||||
Net proceeds from reinvestment of distributions | |||||||||
Institutional Shares | — | 389,550 | |||||||
Open Shares | — | 21,686 | |||||||
R6 Shares | — | — | |||||||
Cost of shares redeemed | |||||||||
Institutional Shares | (23,473,541 | ) | (88,565,915 | ) | |||||
Open Shares | (1,710,126 | ) | (4,209,453 | ) | |||||
R6 Shares | — | — | |||||||
Net increase (decrease) in net assets from capital stock transactions | 12,690,151 | (55,448,144 | ) | ||||||
Total increase (decrease) in net assets | 17,659,803 | (34,804,141 | ) | ||||||
Net assets at beginning of period | 200,603,376 | 235,407,517 | |||||||
Net assets at end of period | $ | 218,263,179 | $ | 200,603,376 |
The accompanying notes are an integral part of these financial statements.
162 Semi-Annual Report
Lazard Emerging Markets Core Equity Portfolio | Lazard Emerging Markets Equity Advantage Portfolio | |||||||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||||||
$ | 798,350 | $ | 1,250,970 | $ | 439,866 | $ | 158,883 | |||||||||
6,001,986 | (15,263,829 | ) | 4,423,775 | 861,107 | ||||||||||||
533,768 | 36,380,293 | 428,910 | 4,663,904 | |||||||||||||
7,334,104 | 22,367,434 | 5,292,551 | 5,683,894 | |||||||||||||
— | (1,248,908 | ) | — | (250,704 | ) | |||||||||||
— | (6,940 | ) | — | (6,176 | ) | |||||||||||
— | (3,206 | ) | — | — | ||||||||||||
— | (1,259,054 | ) | — | (256,880 | ) | |||||||||||
23,619,855 | 53,105,750 | 42,734,075 | 17,937,030 | |||||||||||||
1,164,909 | 1,691,273 | 3,691,541 | 608,209 | |||||||||||||
30,359 | 62,330 | — | — | |||||||||||||
— | 1,200,626 | — | 250,704 | |||||||||||||
— | 6,902 | — | 6,176 | |||||||||||||
— | 3,206 | — | — | |||||||||||||
(49,339,165 | ) | (62,957,718 | ) | (2,659,432 | ) | (4,770,498 | ) | |||||||||
(1,418,521 | ) | (1,705,658 | ) | (3,768,037 | ) | (1,037,074 | ) | |||||||||
(45,763 | ) | (158,910 | ) | — | — | |||||||||||
(25,988,326 | ) | (8,752,199 | ) | 39,998,147 | 12,994,547 | |||||||||||
(18,654,222 | ) | 12,356,181 | 45,290,698 | 18,421,561 | ||||||||||||
212,590,855 | 200,234,674 | 28,773,576 | 10,352,015 | |||||||||||||
$ | 193,936,633 | $ | 212,590,855 | $ | 74,064,274 | $ | 28,773,576 |
Semi-Annual Report 163
Lazard Developing Markets Equity Portfolio | |||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | ||||||||
Shares issued and redeemed | |||||||||
Institutional Shares | |||||||||
Shares outstanding at beginning of period | 11,013,865 | 15,534,848 | |||||||
Shares sold | 1,994,275 | 2,536,944 | |||||||
Shares issued to shareholders from reinvestment of distributions | — | 27,818 | |||||||
Shares redeemed | (1,292,354 | ) | (7,085,745 | ) | |||||
Net increase (decrease) | 701,921 | (4,520,983 | ) | ||||||
Shares outstanding at end of period | 11,715,786 | 11,013,865 | |||||||
Open Shares | |||||||||
Shares outstanding at beginning of period | 575,985 | 643,853 | |||||||
Shares sold | 87,335 | 242,484 | |||||||
Shares issued to shareholders from reinvestment of distributions | — | 1,556 | |||||||
Shares redeemed | (94,966 | ) | (311,908 | ) | |||||
Net increase (decrease) | (7,631 | ) | (67,868 | ) | |||||
Shares outstanding at end of period | 568,354 | 575,985 | |||||||
R6 Shares | |||||||||
Shares outstanding at beginning of period | — | — | |||||||
Shares sold | — | — | |||||||
Shares issued to shareholders from reinvestment of distributions | — | — | |||||||
Shares redeemed | — | — | |||||||
Net increase (decrease) | — | — | |||||||
Shares outstanding at end of period | — | — |
The accompanying notes are an integral part of these financial statements.
164 Semi-Annual Report
Lazard Emerging Markets Core Equity Portfolio | Lazard Emerging Markets Equity Advantage Portfolio | |||||||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||||||
15,971,095 | 16,728,969 | 2,022,986 | 775,852 | |||||||||||||
1,723,301 | 5,299,853 | 2,933,085 | 1,609,818 | |||||||||||||
— | 95,867 | — | 19,017 | |||||||||||||
(3,633,578 | ) | (6,153,594 | ) | (181,224 | ) | (381,701 | ) | |||||||||
(1,910,277 | ) | (757,874 | ) | 2,751,861 | 1,247,134 | |||||||||||
14,060,818 | 15,971,095 | 4,774,847 | 2,022,986 | |||||||||||||
194,354 | 206,183 | 63,491 | 98,083 | |||||||||||||
85,295 | 152,220 | 257,982 | 58,240 | |||||||||||||
— | 559 | — | 469 | |||||||||||||
(103,149 | ) | (164,608 | ) | (254,815 | ) | (93,301 | ) | |||||||||
(17,854 | ) | (11,829 | ) | 3,167 | (34,592 | ) | ||||||||||
176,500 | 194,354 | 66,658 | 63,491 | |||||||||||||
41,454 | 50,582 | — | — | |||||||||||||
2,236 | 5,652 | — | — | |||||||||||||
— | 255 | — | — | |||||||||||||
(3,347 | ) | (15,035 | ) | — | — | |||||||||||
(1,111 | ) | (9,128 | ) | — | — | |||||||||||
40,343 | 41,454 | — | — |
Semi-Annual Report 165
Lazard Emerging Markets Equity Portfolio | |||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | ||||||||
Increase (Decrease) in Net Assets | |||||||||
Operations | |||||||||
Net investment income (loss) | $ | 51,326,147 | $ | 119,586,487 | |||||
Net realized gain (loss) | 281,675,791 | (426,812,130 | ) | ||||||
Net change in unrealized appreciation (depreciation) | 118,400,386 | (347,937,082 | ) | ||||||
Net increase (decrease) in net assets resulting from operations | 451,402,324 | (655,162,725 | ) | ||||||
Distributions to shareholders (Note 2(e)) | |||||||||
Net investment income and net realized gains | |||||||||
Institutional Shares | — | (92,081,985 | ) | ||||||
Open Shares | — | (8,363,930 | ) | ||||||
R6 Shares | — | (1,004,977 | ) | ||||||
Net decrease in net assets resulting from distributions | — | (101,450,892 | ) | ||||||
Capital stock transactions | |||||||||
Net proceeds from sales | |||||||||
Institutional Shares | 453,755,284 | 846,924,581 | |||||||
Open Shares | 37,644,137 | 40,640,285 | |||||||
R6 Shares | 1,030,589 | 14,719,078 | |||||||
Net proceeds from reinvestment of distributions | |||||||||
Institutional Shares | — | 88,030,506 | |||||||
Open Shares | — | 8,264,600 | |||||||
R6 Shares | — | 847,221 | |||||||
Cost of shares redeemed | |||||||||
Institutional Shares | (1,015,555,658 | ) | (3,083,569,274 | ) | |||||
Open Shares | (84,060,625 | ) | (453,247,114 | ) | |||||
R6 Shares | (12,323,847 | ) | (135,610,119 | ) | |||||
Net increase (decrease) in net assets from capital stock transactions | (619,510,120 | ) | (2,673,000,236 | ) | |||||
Total increase (decrease) in net assets | (168,107,796 | ) | (3,429,613,853 | ) | |||||
Net assets at beginning of period | 4,369,498,265 | 7,799,112,118 | |||||||
Net assets at end of period | $ | 4,201,390,469 | $ | 4,369,498,265 |
The accompanying notes are an integral part of these financial statements.
166 Semi-Annual Report
Lazard Emerging Markets Strategic Equity Portfolio | Lazard Equity Franchise Portfolio | |||||||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||||||
$ | 320,890 | $ | 903,767 | $ | 979,194 | $ | 616,928 | |||||||||
10,669,486 | (2,308,597 | ) | 8,825,210 | (1,412,138 | ) | |||||||||||
(7,291,109 | ) | 7,730,722 | 5,914,677 | 12,204,242 | ||||||||||||
3,699,267 | 6,325,892 | 15,719,081 | 11,409,032 | |||||||||||||
— | (902,733 | ) | — | (1,012,397 | ) | |||||||||||
— | (38,967 | ) | — | (1,121 | ) | |||||||||||
— | — | — | — | |||||||||||||
— | (941,700 | ) | — | (1,013,518 | ) | |||||||||||
5,891,792 | 13,037,212 | 7,960,207 | 66,915,810 | |||||||||||||
788,435 | 447,062 | 34,514 | 33,698 | |||||||||||||
— | — | — | — | |||||||||||||
— | 889,530 | — | 1,012,397 | |||||||||||||
— | 38,190 | — | 1,121 | |||||||||||||
— | — | — | — | |||||||||||||
(10,021,457 | ) | (41,254,117 | ) | (12,102,092 | ) | (26,514,732 | ) | |||||||||
(1,604,718 | ) | (2,493,332 | ) | (21,461 | ) | (183,641 | ) | |||||||||
— | — | — | — | |||||||||||||
(4,945,948 | ) | (29,335,455 | ) | (4,128,832 | ) | 41,264,653 | ||||||||||
(1,246,681 | ) | (23,951,263 | ) | 11,590,249 | 51,660,167 | |||||||||||
78,424,875 | 102,376,138 | 91,849,445 | 40,189,278 | |||||||||||||
$ | 77,178,194 | $ | 78,424,875 | $ | 103,439,694 | $ | 91,849,445 |
Semi-Annual Report 167
Lazard Emerging Markets Equity Portfolio | |||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | ||||||||
Shares issued and redeemed | |||||||||
Institutional Shares | |||||||||
Shares outstanding at beginning of period | 217,598,338 | 359,649,575 | |||||||
Shares sold | 23,554,335 | 55,904,093 | |||||||
Shares issued to shareholders from reinvestment of distributions | — | 5,536,608 | |||||||
Shares redeemed | (52,667,379 | ) | (203,491,938 | ) | |||||
Net increase (decrease) | (29,113,044 | ) | (142,051,237 | ) | |||||
Shares outstanding at end of period | 188,485,294 | 217,598,338 | |||||||
Open Shares | |||||||||
Shares outstanding at beginning of period | 22,707,741 | 50,941,578 | |||||||
Shares sold | 1,946,159 | 2,571,349 | |||||||
Shares issued to shareholders from reinvestment of distributions | — | 509,353 | |||||||
Shares redeemed | (4,287,134 | ) | (31,314,539 | ) | |||||
Net increase (decrease) | (2,340,975 | ) | (28,233,837 | ) | |||||
Shares outstanding at end of period | 20,366,766 | 22,707,741 | |||||||
R6 Shares | |||||||||
Shares outstanding at beginning of period | 1,310,139 | 9,977,898 | |||||||
Shares sold | 53,591 | 1,007,773 | |||||||
Shares issued to shareholders from reinvestment of distributions | — | 54,837 | |||||||
Shares redeemed | (628,695 | ) | (9,730,369 | ) | |||||
Net increase (decrease) | (575,104 | ) | (8,667,759 | ) | |||||
Shares outstanding at end of period | 735,035 | 1,310,139 |
The accompanying notes are an integral part of these financial statements.
168 Semi-Annual Report
Lazard Emerging Markets Strategic Equity Portfolio | Lazard Equity Franchise Portfolio | |||||||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||||||
5,390,573 | 7,913,478 | 9,016,463 | 3,919,193 | |||||||||||||
410,527 | 1,164,850 | 704,067 | 8,314,466 | |||||||||||||
— | 67,134 | — | 102,163 | |||||||||||||
(692,602 | ) | (3,754,889 | ) | (1,037,198 | ) | (3,319,359 | ) | |||||||||
(282,075 | ) | (2,522,905 | ) | (333,131 | ) | 5,097,270 | ||||||||||
5,108,498 | 5,390,573 | 8,683,332 | 9,016,463 | |||||||||||||
290,075 | 488,799 | 12,708 | 30,624 | |||||||||||||
54,787 | 37,429 | 2,831 | 4,284 | |||||||||||||
— | 2,871 | — | 113 | |||||||||||||
(112,122 | ) | (239,024 | ) | (1,877 | ) | (22,313 | ) | |||||||||
(57,335 | ) | (198,724 | ) | 954 | (17,916 | ) | ||||||||||
232,740 | 290,075 | 13,662 | 12,708 | |||||||||||||
— | — | — | — | |||||||||||||
— | — | — | — | |||||||||||||
— | — | — | — | |||||||||||||
— | — | — | — | |||||||||||||
— | — | — | — | |||||||||||||
— | — | — | — |
Semi-Annual Report 169
Lazard Global Equity Select Portfolio | |||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | ||||||||
Increase in Net Assets | |||||||||
Operations | |||||||||
Net investment income (loss) | $ | 307,123 | $ | 317,684 | |||||
Net realized gain (loss) | 2,839,768 | 9,730,399 | |||||||
Net change in unrealized appreciation (depreciation) | 8,588,054 | 8,086,380 | |||||||
Net increase (decrease) in net assets resulting from operations | 11,734,945 | 18,134,463 | |||||||
Distributions to shareholders (Note 2(e)) | |||||||||
Net investment income and net realized gains | |||||||||
Institutional Shares | — | (3,043,294 | ) | ||||||
Open Shares | — | (35,091 | ) | ||||||
Return of capital | |||||||||
Institutional Shares | — | — | |||||||
Open Shares | — | — | |||||||
Net decrease in net assets resulting from distributions | — | (3,078,385 | ) | ||||||
Capital stock transactions | |||||||||
Net proceeds from sales | |||||||||
Institutional Shares | 10,908,604 | 57,343,908 | |||||||
Open Shares | 133,595 | 414,176 | |||||||
Net proceeds from reinvestment of distributions | |||||||||
Institutional Shares | — | 3,031,617 | |||||||
Open Shares | — | 35,091 | |||||||
Cost of shares redeemed | |||||||||
Institutional Shares | (9,723,091 | ) | (64,939,018 | ) | |||||
Open Shares | (46,056 | ) | (355,466 | ) | |||||
Net increase (decrease) in net assets from capital stock transactions | 1,273,052 | (4,469,692 | ) | ||||||
Total increase (decrease) in net assets | 13,007,997 | 10,586,386 | |||||||
Net assets at beginning of period | 93,575,829 | 82,989,443 | |||||||
Net assets at end of period | $ | 106,583,826 | $ | 93,575,829 | |||||
Shares issued and redeemed | |||||||||
Institutional Shares | |||||||||
Shares outstanding at beginning of period | 5,662,503 | 5,634,353 | |||||||
Shares sold | 626,616 | 4,228,592 | |||||||
Shares issued to shareholders from reinvestment of distributions | — | 188,886 | |||||||
Shares redeemed | (547,562 | ) | (4,389,328 | ) | |||||
Net increase (decrease) | 79,054 | 28,150 | |||||||
Shares outstanding at end of period | 5,741,557 | 5,662,503 | |||||||
Open Shares | |||||||||
Shares outstanding at beginning of period | 70,899 | 64,021 | |||||||
Shares sold | 7,584 | 28,090 | |||||||
Shares issued to shareholders from reinvestment of distributions | — | 2,185 | |||||||
Shares redeemed | (2,660 | ) | (23,397 | ) | |||||
Net increase (decrease) | 4,924 | 6,878 | |||||||
Shares outstanding at end of period | 75,823 | 70,899 |
* | Shares and shares transactions were adjusted to reflect 1:5 reverse stock split effective November 17, 2020. |
The accompanying notes are an integral part of these financial statements.
170 Semi-Annual Report
Lazard Global Listed Infrastructure Portfolio | Lazard Global Strategic Equity Portfolio | |||||||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||||||
$ | 137,762,710 | $ | 136,832,780 | $ | 22,543 | $ | 7,620 | |||||||||
87,916,396 | (241,911,502 | ) | 686,089 | 174,646 | ||||||||||||
437,634,143 | (320,607,336 | ) | 244,469 | 562,865 | ||||||||||||
663,313,249 | (425,686,058 | ) | 953,101 | 745,131 | ||||||||||||
(23,105,445 | ) | (146,650,767 | ) | — | (123,283 | ) | ||||||||||
(494,675 | ) | (7,331,111 | ) | — | (5,397 | ) | ||||||||||
— | (34,264,854 | ) | — | — | ||||||||||||
— | (1,712,909 | ) | — | — | ||||||||||||
(23,600,120 | ) | (189,959,641 | ) | — | (128,680 | ) | ||||||||||
1,239,388,820 | 2,811,013,767 | 13,131,784 | 253,851 | |||||||||||||
28,414,378 | 97,410,328 | 38,564 | 23,248 | |||||||||||||
17,518,829 | 137,048,805 | — | 123,283 | |||||||||||||
486,615 | 8,929,119 | — | 5,397 | |||||||||||||
(976,110,993 | ) | (2,357,774,296 | ) | (1,135,535 | ) | (77,247 | ) | |||||||||
(60,768,572 | ) | (209,443,477 | ) | (15,129 | ) | (13,133 | ) | |||||||||
248,929,077 | 487,184,246 | 12,019,684 | 315,399 | |||||||||||||
888,642,206 | (128,461,453 | ) | 12,972,785 | 931,850 | ||||||||||||
7,597,437,005 | 7,725,898,458 | 4,260,308 | 3,328,458 | |||||||||||||
$ | 8,486,079,211 | $ | 7,597,437,005 | $ | 17,233,093 | $ | 4,260,308 | |||||||||
497,500,386 | 461,276,357 | 336,354 | 309,023 | * | ||||||||||||
82,345,489 | 194,182,619 | 1,021,114 | 24,511 | * | ||||||||||||
1,112,380 | 10,363,887 | — | 10,552 | * | ||||||||||||
(64,686,950 | ) | (168,322,477 | ) | (86,609 | ) | (7,732 | )* | |||||||||
18,770,919 | 36,224,029 | 934,505 | 27,331 | * | ||||||||||||
516,271,305 | 497,500,386 | 1,270,859 | 336,354 | * | ||||||||||||
20,993,761 | 28,396,647 | 15,347 | 14,046 | * | ||||||||||||
1,881,042 | 6,691,684 | 3,043 | 2,123 | * | ||||||||||||
30,426 | 677,742 | — | 466 | * | ||||||||||||
(4,085,600 | ) | (14,772,312 | ) | (1,209 | ) | (1,288 | )* | |||||||||
(2,174,132 | ) | (7,402,886 | ) | 1,834 | 1,301 | * | ||||||||||
18,819,629 | 20,993,761 | 17,181 | 15,347 |
Semi-Annual Report 171
Lazard International | ||||||||
Equity Advantage Portfolio | ||||||||
Six Months Ended | Year Ended | |||||||
June 30, 2021 | December 31, | |||||||
(unaudited) | 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 42,275 | $ | 50,787 | ||||
Net realized gain (loss) | 248,418 | (134,244 | ) | |||||
Net change in unrealized appreciation (depreciation) | 18,450 | 211,107 | ||||||
Net increase (decrease) in net assets resulting from operations | 309,143 | 127,650 | ||||||
Distributions to shareholders (Note 2(e)) | ||||||||
Net investment income and net realized gains | ||||||||
Institutional Shares | — | (48,006 | ) | |||||
Open Shares | — | (2,025 | ) | |||||
R6 Shares | — | — | ||||||
Net decrease in net assets resulting from distributions | — | (50,031 | ) | |||||
Capital stock transactions | ||||||||
Net proceeds from sales | ||||||||
Institutional Shares | 785 | — | ||||||
Open Shares | 5 | — | ||||||
R6 Shares | — | — | ||||||
Net proceeds from reinvestment of distributions | ||||||||
Institutional Shares | — | 48,006 | ||||||
Open Shares | — | 2,025 | ||||||
R6 Shares | — | — | ||||||
Cost of shares redeemed | ||||||||
Institutional Shares | — | (57,767 | ) | |||||
Open Shares | (5 | ) | — | |||||
R6 Shares | — | — | ||||||
Net increase (decrease) in net assets from capital stock transactions | 785 | (7,736 | ) | |||||
Total increase (decrease) in net assets | 309,928 | 69,883 | ||||||
Net assets at beginning of period | 2,591,090 | 2,521,207 | ||||||
Net assets at end of period | $ | 2,901,018 | $ | 2,591,090 |
The accompanying notes are an integral part of these financial statements.
172 Semi-Annual Report
Lazard International | Lazard | |||||||||||||||
Equity Concentrated Portfolio | International Equity Portfolio | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
June 30, 2021 | December 31, | June 30, 2021 | December 31, | |||||||||||||
(unaudited) | 2020 | (unaudited) | 2020 | |||||||||||||
$ | 38,025 | $ | 522,828 | $ | 45,596,705 | $ | 31,982,942 | |||||||||
2,427,047 | (9,959,746 | ) | 193,135,802 | (22,368,369 | ) | |||||||||||
(1,920,173 | ) | (7,019,673 | ) | (90,131,450 | ) | 259,570,688 | ||||||||||
544,899 | (16,456,591 | ) | 148,601,057 | 269,185,261 | ||||||||||||
— | (502,330 | ) | — | (28,031,055 | ) | |||||||||||
— | (12,425 | ) | — | (2,010,258 | ) | |||||||||||
— | — | — | (1,244,237 | ) | ||||||||||||
— | (514,755 | ) | — | (31,285,550 | ) | |||||||||||
79,393 | 21,575,394 | 231,137,334 | 829,447,085 | |||||||||||||
25,400 | 2,660 | 9,549,916 | 52,835,440 | |||||||||||||
— | — | 20,327,642 | 55,056,018 | |||||||||||||
— | 502,184 | — | 25,025,241 | |||||||||||||
— | 12,425 | — | 1,799,295 | |||||||||||||
— | — | — | 1,241,734 | |||||||||||||
(12,281,916 | ) | (89,284,855 | ) | (604,811,775 | ) | (749,116,212 | ) | |||||||||
(63,913 | ) | (21,492 | ) | (15,511,632 | ) | (206,597,466 | ) | |||||||||
— | — | (42,155,626 | ) | (44,843,974 | ) | |||||||||||
(12,241,036 | ) | (67,213,684 | ) | (401,464,141 | ) | (35,152,839 | ) | |||||||||
(11,696,137 | ) | (84,185,030 | ) | (252,863,084 | ) | 202,746,872 | ||||||||||
14,060,849 | 98,245,879 | 3,062,650,113 | 2,859,903,241 | |||||||||||||
$ | 2,364,712 | $ | 14,060,849 | $ | 2,809,787,029 | $ | 3,062,650,113 |
Semi-Annual Report 173
Lazard International | ||||||||
Equity Advantage Portfolio | ||||||||
Six Months Ended | Year Ended | |||||||
June 30, 2021 | December 31, | |||||||
(unaudited) | 2020 | |||||||
Shares issued and redeemed | ||||||||
Institutional Shares | ||||||||
Shares outstanding at beginning of period | 239,526 | 241,125 | ||||||
Shares sold | 72 | — | ||||||
Shares issued to shareholders from reinvestment of distributions | — | 4,784 | ||||||
Shares redeemed | — | (6,383 | ) | |||||
Net increase (decrease) | 72 | (1,599 | ) | |||||
Shares outstanding at end of period | 239,598 | 239,526 | ||||||
Open Shares | ||||||||
Shares outstanding at beginning of period | 11,520 | 11,318 | ||||||
Shares sold | — | — | ||||||
Shares issued to shareholders from reinvestment of distributions | — | 202 | ||||||
Shares redeemed | — | — | ||||||
Net increase (decrease) | — | 202 | ||||||
Shares outstanding at end of period | 11,520 | 11,520 | ||||||
R6 Shares | ||||||||
Shares outstanding at beginning of period | — | — | ||||||
Shares sold | — | — | ||||||
Shares issued to shareholders from reinvestment of distributions | — | — | ||||||
Shares redeemed | — | — | ||||||
Net increase (decrease) | — | — | ||||||
Shares outstanding at end of period | — | — |
The accompanying notes are an integral part of these financial statements.
174 Semi-Annual Report
Lazard International | ||||||||||||||||
Equity Concentrated Portfolio | Lazard International Equity Portfolio | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
June 30, 2021 | December 31, | June 30, 2021 | December 31, | |||||||||||||
(unaudited) | 2020 | (unaudited) | 2020 | |||||||||||||
1,364,089 | 9,493,019 | 140,490,643 | 134,082,503 | |||||||||||||
7,540 | 2,373,255 | 11,197,455 | 50,874,540 | |||||||||||||
— | 51,745 | — | 1,327,534 | |||||||||||||
(1,185,595 | ) | (10,553,930 | ) | (29,738,255 | ) | (45,793,934 | ) | |||||||||
(1,178,055 | ) | (8,128,930 | ) | (18,540,800 | ) | 6,408,140 | ||||||||||
186,034 | 1,364,089 | 121,949,843 | 140,490,643 | |||||||||||||
41,089 | 41,695 | 5,960,372 | 13,658,790 | |||||||||||||
2,402 | 272 | 456,469 | 3,165,143 | |||||||||||||
— | 1,277 | — | 95,416 | |||||||||||||
(6,413 | ) | (2,155 | ) | (739,740 | ) | (10,958,977 | ) | |||||||||
(4,011 | ) | (606 | ) | (283,271 | ) | (7,698,418 | ) | |||||||||
37,078 | 41,089 | 5,677,101 | 5,960,372 | |||||||||||||
— | — | 6,473,822 | 5,788,801 | |||||||||||||
— | — | 1,002,133 | 3,191,487 | |||||||||||||
— | — | — | 65,933 | |||||||||||||
— | — | (2,044,612 | ) | (2,572,399 | ) | |||||||||||
— | — | (1,042,479 | ) | 685,021 | ||||||||||||
— | — | 5,431,343 | 6,473,822 |
Semi-Annual Report 175
Lazard | ||||||||
International Equity Select Portfolio | ||||||||
Six Months Ended | Year Ended | |||||||
June 30, 2021 | December 31, | |||||||
(unaudited) | 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 1,079,074 | $ | 937,142 | ||||
Net realized gain (loss) | 2,723,215 | (1,780,411 | ) | |||||
Net change in unrealized appreciation (depreciation) | 494,917 | 7,062,981 | ||||||
Net increase from payments by affiliates | — | — | ||||||
Net increase (decrease) in net assets resulting from operations | 4,297,206 | 6,219,712 | ||||||
Distributions to shareholders (Note 2(e)) | ||||||||
Net investment income and net realized gains | ||||||||
Institutional Shares | — | (898,108 | ) | |||||
Open Shares | — | (20,139 | ) | |||||
Net decrease in net assets resulting from distributions | — | (918,247 | ) | |||||
Capital stock transactions | ||||||||
Net proceeds from sales | ||||||||
Institutional Shares | 8,559,925 | 23,196,482 | ||||||
Open Shares | 989,786 | 1,529,531 | ||||||
Net proceeds from reinvestment of distributions | ||||||||
Institutional Shares | — | 874,186 | ||||||
Open Shares | — | 19,885 | ||||||
Cost of shares redeemed | ||||||||
Institutional Shares | (19,893,374 | ) | (30,557,726 | ) | ||||
Open Shares | (1,523,524 | ) | (1,462,806 | ) | ||||
Net increase (decrease) in net assets from capital stock transactions | (11,867,187 | ) | (6,400,448 | ) | ||||
Total increase (decrease) in net assets | (7,569,981 | ) | (1,098,983 | ) | ||||
Net assets at beginning of period | 94,988,838 | 96,087,821 | ||||||
Net assets at end of period | $ | 87,418,857 | $ | 94,988,838 | ||||
Shares issued and redeemed | ||||||||
Institutional Shares | ||||||||
Shares outstanding at beginning of period | 7,993,045 | 8,707,246 | ||||||
Shares sold | 722,804 | 2,451,854 | ||||||
Shares issued to shareholders from reinvestment of distributions | — | 77,913 | ||||||
Shares redeemed | (1,682,256 | ) | (3,243,968 | ) | ||||
Net increase (decrease) | (959,452 | ) | (714,201 | ) | ||||
Shares outstanding at end of period | 7,033,593 | 7,993,045 | ||||||
Open Shares | ||||||||
Shares outstanding at beginning of period | 247,615 | 231,629 | ||||||
Shares sold | 83,804 | 156,101 | ||||||
Shares issued to shareholders from reinvestment of distributions | — | 1,763 | ||||||
Shares redeemed | (127,531 | ) | (141,878 | ) | ||||
Net increase (decrease) | (43,727 | ) | 15,986 | |||||
Shares outstanding at end of period | 203,888 | 247,615 |
The accompanying notes are an integral part of these financial statements.
176 Semi-Annual Report
Lazard | ||||||||||||||||
Lazard International Equity Value Portfolio | International Quality Growth Portfolio | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
June 30, 2021 | December 31, | June 30, 2021 | December 31, | |||||||||||||
(unaudited) | 2020 | (unaudited) | 2020 | |||||||||||||
$ | 38,556 | $ | 47,772 | $ | 85,816 | $ | 13,507 | |||||||||
196,439 | 10,261 | 545,199 | 89,062 | |||||||||||||
25,929 | (296,859 | ) | 1,932,698 | 1,555,029 | ||||||||||||
— | 88,959 | — | — | |||||||||||||
260,924 | (149,867 | ) | 2,563,713 | 1,657,598 | ||||||||||||
— | (58,054 | ) | — | (84,866 | ) | |||||||||||
— | (741 | ) | — | (2,354 | ) | |||||||||||
— | (58,795 | ) | — | (87,220 | ) | |||||||||||
195,241 | 2,686,850 | 16,173,065 | 5,094,900 | |||||||||||||
2,315 | 9,981 | 62,218 | 265,673 | |||||||||||||
— | 58,054 | — | 84,866 | |||||||||||||
— | 680 | — | 2,354 | |||||||||||||
(22,000 | ) | (12,992,331 | ) | (434,180 | ) | (208,991 | ) | |||||||||
(471 | ) | (77,178 | ) | (50,014 | ) | (12,636 | ) | |||||||||
175,085 | (10,313,944 | ) | 15,751,089 | 5,226,166 | ||||||||||||
436,009 | (10,522,606 | ) | 18,314,802 | 6,796,544 | ||||||||||||
2,750,897 | 13,273,503 | 10,764,251 | 3,967,707 | |||||||||||||
$ | 3,186,906 | $ | 2,750,897 | $ | 29,079,053 | $ | 10,764,251 | |||||||||
289,650 | 1,319,964 | 671,884 | 311,939 | |||||||||||||
19,101 | 273,087 | 1,024,868 | 370,047 | |||||||||||||
— | 6,508 | — | 5,572 | |||||||||||||
(2,144 | ) | (1,309,909 | ) | (26,518 | ) | (15,674 | ) | |||||||||
16,957 | (1,030,314 | ) | 998,350 | 359,945 | ||||||||||||
306,607 | 289,650 | 1,670,234 | 671,884 | |||||||||||||
4,300 | 14,189 | 18,777 | 771 | |||||||||||||
232 | 1,262 | 3,753 | 18,836 | |||||||||||||
— | 76 | — | 155 | |||||||||||||
(46 | ) | (11,227 | ) | (3,092 | ) | (985 | ) | |||||||||
186 | (9,889 | ) | 661 | 18,006 | ||||||||||||
4,486 | 4,300 | 19,438 | 18,777 |
Semi-Annual Report 177
Lazard International | ||||||||
Small Cap Equity Portfolio | ||||||||
Six Months Ended | Year Ended | |||||||
June 30, 2021 | December 31, | |||||||
(unaudited) | 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 156,983 | $ | 216,390 | ||||
Net realized gain (loss) | 3,672,374 | 547,329 | ||||||
Net change in unrealized appreciation (depreciation) | 656,874 | 2,270,963 | ||||||
Net increase (decrease) in net assets resulting from operations | 4,486,231 | 3,034,682 | ||||||
Distributions to shareholders (Note 2(e)) | ||||||||
Net investment income and net realized gains | ||||||||
Institutional Shares | — | (729,812 | ) | |||||
Open Shares | — | (274,269 | ) | |||||
R6 Shares | — | — | ||||||
Net decrease in net assets resulting from distributions | — | (1,004,081 | ) | |||||
Capital stock transactions | ||||||||
Net proceeds from sales | ||||||||
Institutional Shares | 2,442,679 | 6,686,012 | ||||||
Open Shares | 1,058,225 | 1,357,370 | ||||||
R6 Shares | — | — | ||||||
Net proceeds from reinvestment of distributions | ||||||||
Institutional Shares | — | 728,414 | ||||||
Open Shares | — | 269,502 | ||||||
R6 Shares | — | — | ||||||
Cost of shares redeemed | ||||||||
Institutional Shares | (7,653,052 | ) | (17,662,848 | ) | ||||
Open Shares | (1,704,336 | ) | (8,911,562 | ) | ||||
R6 Shares | — | — | ||||||
Net increase (decrease) in net assets from capital stock transactions | (5,856,484 | ) | (17,533,112 | ) | ||||
Total increase (decrease) in net assets | (1,370,253 | ) | (15,502,511 | ) | ||||
Net assets at beginning of period | 41,955,188 | 57,457,699 | ||||||
Net assets at end of period | $ | 40,584,935 | $ | 41,955,188 |
The accompanying notes are an integral part of these financial statements.
178 Semi-Annual Report
Lazard International | Lazard Managed | |||||||||||||||
Strategic Equity Portfolio | Equity Volatility Portfolio | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
June 30, 2021 | December 31, | June 30, 2021 | December 31, | |||||||||||||
(unaudited) | 2020 | (unaudited) | 2020 | |||||||||||||
$ | 91,773,387 | $ | 61,471,034 | $ | 259,663 | $ | 556,115 | |||||||||
221,916,920 | (40,723,514 | ) | 1,609,938 | (1,486,977 | ) | |||||||||||
126,612,445 | 413,060,145 | 535,625 | (960,609 | ) | ||||||||||||
440,302,752 | 433,807,665 | 2,405,226 | (1,891,471 | ) | ||||||||||||
— | (53,074,159 | ) | — | (562,392 | ) | |||||||||||
— | (4,116,579 | ) | — | (1,918 | ) | |||||||||||
— | (1,190,335 | ) | — | — | ||||||||||||
— | (58,381,073 | ) | — | (564,310 | ) | |||||||||||
741,565,096 | 867,984,229 | 2,717,782 | 3,728,503 | |||||||||||||
34,936,249 | 109,837,899 | 640 | 7,770 | |||||||||||||
3,822,135 | 6,884,808 | — | — | |||||||||||||
— | 49,928,530 | — | 527,907 | |||||||||||||
— | 3,877,654 | — | 1,918 | |||||||||||||
— | 1,163,760 | — | — | |||||||||||||
(501,949,619 | ) | (1,489,992,288 | ) | (3,444,050 | ) | (10,447,520 | ) | |||||||||
(90,488,292 | ) | (288,996,541 | ) | (2,786 | ) | (134,993 | ) | |||||||||
(4,513,093 | ) | (18,963,448 | ) | — | — | |||||||||||
183,372,476 | (758,275,397 | ) | (728,414 | ) | (6,316,415 | ) | ||||||||||
623,675,228 | (382,848,805 | ) | 1,676,812 | (8,772,196 | ) | |||||||||||
5,924,574,787 | 6,307,423,592 | 25,813,712 | 34,585,908 | |||||||||||||
$ | 6,548,250,015 | $ | 5,924,574,787 | $ | 27,490,524 | $ | 25,813,712 |
Semi-Annual Report 179
Lazard International | ||||||||
Small Cap Equity Portfolio | ||||||||
Six Months Ended | Year Ended | |||||||
June 30, 2021 | December 31, | |||||||
(unaudited) | 2020 | |||||||
Shares issued and redeemed | ||||||||
Institutional Shares | ||||||||
Shares outstanding at beginning of period | 2,175,223 | 3,090,617 | ||||||
Shares sold | 172,278 | 589,232 | ||||||
Shares issued to shareholders from reinvestment of distributions | — | 63,230 | ||||||
Shares redeemed | (547,909 | ) | (1,567,856 | ) | ||||
Net increase (decrease) | (375,631 | ) | (915,394 | ) | ||||
Shares outstanding at end of period | 1,799,592 | 2,175,223 | ||||||
Open Shares | ||||||||
Shares outstanding at beginning of period | 931,724 | 1,622,591 | ||||||
Shares sold | 72,096 | 121,575 | ||||||
Shares issued to shareholders from reinvestment of distributions | — | 23,374 | ||||||
Shares redeemed | (116,989 | ) | (835,816 | ) | ||||
Net increase (decrease) | (44,893 | ) | (690,867 | ) | ||||
Shares outstanding at end of period | 886,831 | 931,724 | ||||||
R6 Shares | ||||||||
Shares outstanding at beginning of period | — | — | ||||||
Shares sold | — | — | ||||||
Shares issued to shareholders from reinvestment of distributions | — | — | ||||||
Shares redeemed | — | — | ||||||
Net increase (decrease) | — | — | ||||||
Shares outstanding at end of period | — | — |
The accompanying notes are an integral part of these financial statements.
180 Semi-Annual Report
Lazard International | Lazard Managed | |||||||||||||||
Strategic Equity Portfolio | Equity Volatility Portfolio | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
June 30, 2021 | December 31, | June 30, 2021 | December 31, | |||||||||||||
(unaudited) | 2020 | (unaudited) | 2020 | |||||||||||||
313,114,237 | 357,911,733 | 2,184,318 | 2,714,105 | |||||||||||||
41,640,846 | 63,824,929 | 222,383 | 339,588 | |||||||||||||
— | 3,094,195 | — | 45,732 | |||||||||||||
(28,357,791 | ) | (111,716,620 | ) | (289,380 | ) | (915,107 | ) | |||||||||
13,283,055 | (44,797,496 | ) | (66,997 | ) | (529,787 | ) | ||||||||||
326,397,292 | 313,114,237 | 2,117,321 | 2,184,318 | |||||||||||||
31,509,845 | 43,939,513 | 6,488 | 18,298 | |||||||||||||
1,977,268 | 8,170,528 | 51 | 693 | |||||||||||||
— | 239,698 | — | 167 | |||||||||||||
(5,153,624 | ) | (20,839,894 | ) | (236 | ) | (12,670 | ) | |||||||||
(3,176,356 | ) | (12,429,668 | ) | (185 | ) | (11,810 | ) | |||||||||
28,333,489 | 31,509,845 | 6,303 | 6,488 | |||||||||||||
7,044,138 | 7,802,421 | — | — | |||||||||||||
218,270 | 482,711 | — | — | |||||||||||||
— | 72,070 | — | — | |||||||||||||
(252,832 | ) | (1,313,064 | ) | — | — | |||||||||||
(34,562 | ) | (758,283 | ) | — | — | |||||||||||
7,009,576 | 7,044,138 | — | — |
Semi-Annual Report 181
Lazard US Equity Concentrated Portfolio | ||||||||
Six Months Ended | Year Ended | |||||||
June 30, 2021 | December 31, | |||||||
(unaudited) | 2020 | |||||||
Increase in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 4,016,121 | $ | 11,826,884 | ||||
Net realized gain (loss) | 144,031,803 | 44,140,640 | ||||||
Net change in unrealized appreciation (depreciation) | 131,621,474 | 276,752,935 | ||||||
Net increase (decrease) in net assets resulting from operations | 279,669,398 | 332,720,459 | ||||||
Distributions to shareholders (Note 2(e)) | ||||||||
Net investment income and net realized gains | ||||||||
Institutional Shares | — | (31,466,690 | ) | |||||
Open Shares | — | (474,468 | ) | |||||
R6 Shares | — | (35,269 | ) | |||||
Net decrease in net assets resulting from distributions | — | (31,976,427 | ) | |||||
Capital stock transactions | ||||||||
Net proceeds from sales | ||||||||
Institutional Shares | 186,796,224 | 832,814,325 | ||||||
Open Shares | 2,846,043 | 7,487,780 | ||||||
R6 Shares | 3,026 | 39,699 | ||||||
Net proceeds from reinvestment of distributions | ||||||||
Institutional Shares | — | 29,424,137 | ||||||
Open Shares | — | 465,481 | ||||||
R6 Shares | — | 35,269 | ||||||
Cost of shares redeemed | ||||||||
Institutional Shares | (472,952,105 | ) | (496,523,782 | ) | ||||
Open Shares | (6,142,127 | ) | (21,891,108 | ) | ||||
R6 Shares | — | (133,537 | ) | |||||
Net increase (decrease) in net assets from capital stock transactions | (289,448,939 | ) | 351,718,264 | |||||
Total increase (decrease) in net assets | (9,779,541 | ) | 652,462,296 | |||||
Net assets at beginning of period | 1,972,902,259 | 1,320,439,963 | ||||||
Net assets at end of period | $ | 1,963,122,718 | $ | 1,972,902,259 |
The accompanying notes are an integral part of these financial statements.
182 Semi-Annual Report
Lazard US Equity Focus Portfolio | Lazard US Small-Mid Cap Equity Portfolio | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
June 30, 2021 | December 31, | June 30, 2021 | December 31, | |||||||||||||
(unaudited) | 2020 | (unaudited) | 2020 | |||||||||||||
$ | 187,238 | $ | 378,730 | $ | (61,430 | ) | $ | 302,781 | ||||||||
1,467,385 | 3,423,426 | 13,603,798 | (4,631,410 | ) | ||||||||||||
8,178,185 | 4,304,928 | 3,733,205 | 9,989,695 | |||||||||||||
9,832,808 | 8,107,084 | 17,275,573 | 5,661,066 | |||||||||||||
— | (1,576,592 | ) | — | (689,524 | ) | |||||||||||
— | (62,169 | ) | — | (79,756 | ) | |||||||||||
— | (978,148 | ) | — | (4,077 | ) | |||||||||||
— | (2,616,909 | ) | — | (773,357 | ) | |||||||||||
3,170,115 | 1,198,572 | 16,736,452 | 41,076,855 | |||||||||||||
6,901 | 49,836 | 820,334 | 1,508,700 | |||||||||||||
13,698,569 | 11,195,761 | 106,771 | 710,287 | |||||||||||||
— | 1,575,875 | — | 684,306 | |||||||||||||
— | 61,322 | — | 73,301 | |||||||||||||
— | 978,148 | — | 4,077 | |||||||||||||
(1,609,651 | ) | (7,184,723 | ) | (20,467,429 | ) | (62,404,831 | ) | |||||||||
(30,086 | ) | (68,642 | ) | (1,403,589 | ) | (5,586,777 | ) | |||||||||
(4,230,127 | ) | (4,575,266 | ) | (88,958 | ) | (75,526 | ) | |||||||||
11,005,721 | 3,230,883 | (4,296,419 | ) | (24,009,608 | ) | |||||||||||
20,838,529 | 8,721,058 | 12,979,154 | (19,121,899 | ) | ||||||||||||
53,107,751 | 44,386,693 | 103,632,413 | 122,754,312 | |||||||||||||
$ | 73,946,280 | $ | 53,107,751 | $ | 116,611,567 | $ | 103,632,413 |
Semi-Annual Report 183
Lazard US Equity Concentrated Portfolio | ||||||||
Six Months Ended | Year Ended | |||||||
June 30, 2021 | December 31, | |||||||
(unaudited) | 2020 | |||||||
Shares issued and redeemed | ||||||||
Institutional Shares | ||||||||
Shares outstanding at beginning of period | 107,284,843 | 75,485,283 | ||||||
Shares sold | 9,627,098 | 61,909,549 | ||||||
Shares issued to shareholders from reinvestment of distributions | — | 1,653,980 | ||||||
Shares redeemed | (24,856,511 | ) | (31,763,969 | ) | ||||
Net increase (decrease) | (15,229,413 | ) | 31,799,560 | |||||
Shares outstanding at end of period | 92,055,430 | 107,284,843 | ||||||
Open Shares | ||||||||
Shares outstanding at beginning of period | 1,888,783 | 2,759,073 | ||||||
Shares sold | 144,992 | 471,205 | ||||||
Shares issued to shareholders from reinvestment of distributions | — | 25,961 | ||||||
Shares redeemed | (316,181 | ) | (1,367,456 | ) | ||||
Net increase (decrease) | (171,189 | ) | (870,290 | ) | ||||
Shares outstanding at end of period | 1,717,594 | 1,888,783 | ||||||
R6 Shares† | ||||||||
Shares outstanding at beginning of period | 120,303 | 123,837 | ||||||
Shares sold | 156 | 2,646 | ||||||
Shares issued to shareholders from reinvestment of distributions | — | 1,978 | ||||||
Shares redeemed | — | (8,158 | ) | |||||
Net increase (decrease) | 156 | (3,534 | ) | |||||
Shares outstanding at end of period | 120,459 | 120,303 |
† | The inception date for the US Small-Mid Cap Equity R6 Shares was January 8, 2020. |
The accompanying notes are an integral part of these financial statements.
184 Semi-Annual Report
Lazard US Equity Focus Portfolio | Lazard US Small-Mid Cap Equity Portfolio | |||||||||||||||
Six Months Ended | Year Ended | Six Months Ended | Year Ended | |||||||||||||
June 30, 2021 | December 31, | June 30, 2021 | December 31, | |||||||||||||
(unaudited) | 2020 | (unaudited) | 2020 | |||||||||||||
2,323,580 | 2,714,562 | 6,377,893 | 7,925,745 | |||||||||||||
218,076 | 100,582 | 1,030,614 | 3,732,653 | |||||||||||||
— | 122,119 | — | 56,694 | |||||||||||||
(113,644 | ) | (613,683 | ) | (1,273,832 | ) | (5,337,199 | ) | |||||||||
104,432 | (390,982 | ) | (243,218 | ) | (1,547,852 | ) | ||||||||||
2,428,012 | 2,323,580 | 6,134,675 | 6,377,893 | |||||||||||||
95,597 | 92,372 | 827,420 | 1,164,098 | |||||||||||||
491 | 4,311 | 56,182 | 138,148 | |||||||||||||
— | 4,733 | — | 6,598 | |||||||||||||
(2,082 | ) | (5,819 | ) | (94,636 | ) | (481,424 | ) | |||||||||
(1,591 | ) | 3,225 | (38,454 | ) | (336,678 | ) | ||||||||||
94,006 | 95,597 | 788,966 | 827,420 | |||||||||||||
1,550,718 | 881,361 | 47,409 | — | |||||||||||||
959,257 | 1,003,398 | 6,363 | 53,236 | |||||||||||||
— | 75,523 | — | 338 | |||||||||||||
(296,811 | ) | (409,564 | ) | (5,406 | ) | (6,165 | ) | |||||||||
662,446 | 669,357 | 957 | 47,409 | |||||||||||||
2,213,164 | 1,550,718 | 48,366 | 47,409 |
Semi-Annual Report 185
Lazard US Sustainable Equity Portfolio | ||||||||
Six Months Ended | Year Ended | |||||||
June 30, 2021 | December 31, | |||||||
(unaudited) | 2020 (a) | |||||||
Increase in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 31,525 | $ | 30,063 | ||||
Net realized gain (loss) | 158,663 | 61,946 | ||||||
Net change in unrealized appreciation (depreciation) | 1,549,094 | 1,719,335 | ||||||
Net increase (decrease) in net assets resulting from operations | 1,739,282 | 1,811,344 | ||||||
Distributions to shareholders (Note 2(e)) | ||||||||
Net investment income and net realized gains | ||||||||
Institutional Shares | — | (62,973 | ) | |||||
Open Shares | — | (393 | ) | |||||
Net decrease in net assets resulting from distributions | — | (63,366 | ) | |||||
Capital stock transactions | ||||||||
Net proceeds from sales | ||||||||
Institutional Shares | — | 9,704,139 | ||||||
Open Shares | 264,507 | 105,500 | ||||||
Net proceeds from reinvestment of distributions | ||||||||
Institutional Shares | — | 62,973 | ||||||
Open Shares | — | 393 | ||||||
Cost of shares redeemed | ||||||||
Institutional Shares | — | (3,004 | ) | |||||
Open Shares | (26,666 | ) | — | |||||
Net increase (decrease) in net assets from capital stock transactions | 237,841 | 9,870,001 | ||||||
Total increase (decrease) in net assets | 1,977,123 | 11,617,979 | ||||||
Net assets at beginning of period | 11,617,979 | — | ||||||
Net assets at end of period | $ | 13,595,102 | $ | 11,617,979 | ||||
Shares issued and redeemed | ||||||||
Institutional Shares | ||||||||
Shares outstanding at beginning of period | 942,026 | — | ||||||
Shares sold | — | 937,041 | ||||||
Shares issued to shareholders from reinvestment | ||||||||
of distributions | — | 5,235 | ||||||
Shares redeemed | — | (250 | ) | |||||
Net increase (decrease) | — | 942,026 | ||||||
Shares outstanding at end of period | 942,026 | 942,026 | ||||||
Open Shares | ||||||||
Shares outstanding at beginning of period | 10,495 | — | ||||||
Shares sold | 20,984 | 10,462 | ||||||
Shares issued to shareholders from reinvestment of distributions | — | 33 | ||||||
Shares redeemed | (1,974 | ) | — | |||||
Net increase (decrease) | 19,010 | 10,495 | ||||||
Shares outstanding at end of period | 29,505 | 10,495 |
(a) | The Portfolio commenced operations on June 30, 2020 |
The accompanying notes are an integral part of these financial statements.
186 Semi-Annual Report
The Lazard Funds, Inc. Financial Highlights (unaudited)
LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.31 | $ | 14.55 | $ | 11.42 | $ | 14.48 | $ | 10.28 | $ | 9.04 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.03 | 0.04 | 0.08 | 0.11 | 0.03 | 0.05 | ^ | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.43 | 2.76 | 3.13 | (3.08 | ) | 4.20 | 1.29 | ||||||||||||||||||
Total from investment operations | 0.46 | 2.80 | 3.21 | (2.97 | ) | 4.23 | 1.34 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.04 | ) | (0.08 | ) | (0.09 | ) | (0.03 | ) | (0.10 | ) | ||||||||||||||
Total distributions | — | (0.04 | ) | (0.08 | ) | (0.09 | ) | (0.03 | ) | (0.10 | ) | ||||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 17.77 | $ | 17.31 | $ | 14.55 | $ | 11.42 | $ | 14.48 | $ | 10.28 | |||||||||||||
Total Return (c) | 2.66 | % | 19.33 | % | 28.17 | % | -20.58 | % | 41.15 | % | 14.8 | 1%^ | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 208,233 | $ | 190,689 | $ | 226,067 | $ | 215,120 | $ | 268,730 | $ | 189,035 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 1.15 | % | 1.17 | % | 1.16 | % | 1.14 | % | 1.18 | % | 1.21 | %^ | |||||||||||||
Gross expenses | 1.15 | % | 1.21 | % | 1.16 | % | 1.14 | % | 1.18 | % | 1.23 | % | |||||||||||||
Net investment income (loss) | 0.36 | % | 0.33 | % | 0.63 | % | 0.83 | % | 0.24 | % | 0.48 | %^ | |||||||||||||
Portfolio turnover rate | 15 | % | 57 | % | 55 | % | 63 | % | 46 | % | 56 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 187
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.21 | $ | 14.51 | $ | 11.36 | $ | 14.45 | $ | 10.28 | $ | 9.05 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.01 | 0.01 | 0.05 | 0.06 | (0.02 | ) | 0.01 | ^ | |||||||||||||||||
Net realized and unrealized gain (loss) | 0.43 | 2.73 | 3.11 | (3.06 | ) | 4.19 | 1.28 | ||||||||||||||||||
Total from investment operations | 0.44 | 2.74 | 3.16 | (3.00 | ) | 4.17 | 1.29 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.04 | ) | (0.01 | ) | (0.09 | ) | — | (0.06 | ) | |||||||||||||||
Total distributions | — | (0.04 | ) | (0.01 | ) | (0.09 | ) | — | (0.06 | ) | |||||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 17.65 | $ | 17.21 | $ | 14.51 | $ | 11.36 | $ | 14.45 | $ | 10.28 | |||||||||||||
Total Return (c) | 2.56 | % | 18.97 | % | 27.79 | % | -20.83 | %# | 40.56 | % | 14.31 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 10,030 | $ | 9,914 | $ | 9,341 | $ | 7,263 | $ | 12,569 | $ | 7,272 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 1.40 | % | 1.44 | % | 1.46 | % | 1.51 | % | 1.58 | % | 1.60 | %^ | |||||||||||||
Gross expenses | 1.46 | % | 1.53 | % | 1.55 | % | 1.51 | % | 1.58 | % | 1.65 | % | |||||||||||||
Net investment income (loss) | 0.10 | % | 0.04 | % | 0.36 | % | 0.42 | % | -0.17 | % | 0.06 | %^ | |||||||||||||
Portfolio turnover rate | 15 | % | 57 | % | 55 | % | 63 | % | 46 | % | 56 | % |
The accompanying notes are an integral part of these financial statements.
188 Semi-Annual Report
† | Unaudited |
^ | Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the period. The amount of the reimbursement was less than $0.005 per share. There was no impact on the total return of the Portfolio. For Institutional Shares, the impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%. For Open Shares, the net expenses and net investment income (loss) ratios of the Portfolio would be unchanged as the change to the period custodian fees was offset against the period expense waivers/reimbursements with no impact to net |
expenses or net investment income (loss). | |
# | The Portfolio received settlement proceeds from a foreign exchange trading class action lawsuit. The proceeds from the settlement represented a realized gain and were recorded in the period received. There was a 0.07% impact on the total return of the Portfolio’s Open Shares. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
(d) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 189
LAZARD EMERGING MARKETS CORE EQUITY PORTFOLIO
Selected data for a | ||||||||||||||||||||||||
share of capital stock | Six Months | |||||||||||||||||||||||
outstanding | Ended | Year Ended | ||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.12 | $ | 11.79 | $ | 9.89 | $ | 12.30 | $ | 8.83 | $ | 8.60 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | 0.05 | 0.08 | 0.20 | 0.16 | 0.11 | 0.08 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.41 | 1.33 | 1.93 | (2.39 | ) | 3.45 | 0.22 | |||||||||||||||||
Total from investment operations | 0.46 | 1.41 | 2.13 | (2.23 | ) | 3.56 | 0.30 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.08 | ) | (0.23 | ) | (0.18 | ) | (0.09 | ) | (0.07 | ) | |||||||||||||
Total distributions | — | (0.08 | ) | (0.23 | ) | (0.18 | ) | (0.09 | ) | (0.07 | ) | |||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | |||||||||||||||||
Net asset value, end of period | $ | 13.58 | $ | 13.12 | $ | 11.79 | $ | 9.89 | $ | 12.30 | $ | 8.83 | ||||||||||||
Total Return (c) | 3.51 | % | 11.98 | % | 21.59 | % | -18.12 | % | 40.35 | % | 3.47 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 191,000 | $ | 209,503 | $ | 197,213 | $ | 207,955 | $ | 230,343 | $ | 122,995 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 1.15 | % | 1.20 | % | 1.18 | % | 1.18 | % | 1.20 | % | 1.30 | % | ||||||||||||
Gross expenses | 1.15 | % | 1.20 | % | 1.18 | % | 1.18 | % | 1.20 | % | 1.31 | % | ||||||||||||
Net investment income (loss) | 0.78 | % | 0.70 | % | 1.83 | % | 1.44 | % | 0.98 | % | 0.89 | % | ||||||||||||
Portfolio turnover rate | 14 | % | 23 | % | 19 | % | 30 | % | 15 | % | 62 | % |
The accompanying notes are an integral part of these financial statements.
190 Semi-Annual Report
Selected data for a | ||||||||||||||||||||||||
share of capital stock | Six Months | |||||||||||||||||||||||
outstanding | Ended | Year Ended | ||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Open Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.09 | $ | 11.76 | $ | 9.87 | $ | 12.27 | $ | 8.81 | $ | 8.58 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | 0.03 | 0.04 | 0.16 | 0.11 | 0.06 | 0.07 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.41 | 1.33 | 1.92 | (2.37 | ) | 3.45 | 0.20 | |||||||||||||||||
Total from investment operations | 0.44 | 1.37 | 2.08 | (2.26 | ) | 3.51 | 0.27 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.04 | ) | (0.19 | ) | (0.14 | ) | (0.05 | ) | (0.04 | ) | |||||||||||||
Total distributions | — | (0.04 | ) | (0.19 | ) | (0.14 | ) | (0.05 | ) | (0.04 | ) | |||||||||||||
Net asset value, end of period | $ | 13.53 | $ | 13.09 | $ | 11.76 | $ | 9.87 | $ | 12.27 | $ | 8.81 | ||||||||||||
Total Return (c) | 3.36 | % | 11.66 | % | 21.08 | % | -18.43 | % | 39.80 | % | 3.17 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 2,388 | $ | 2,544 | $ | 2,425 | $ | 1,853 | $ | 1,828 | $ | 729 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 1.50 | % | 1.50 | % | 1.55 | % | 1.58 | % | 1.60 | % | 1.60 | % | ||||||||||||
Gross expenses | 1.54 | % | 1.62 | % | 1.90 | % | 2.00 | % | 2.45 | % | 2.14 | % | ||||||||||||
Net investment income (loss) | 0.49 | % | 0.35 | % | 1.48 | % | 1.00 | % | 0.56 | % | 0.85 | % | ||||||||||||
Portfolio turnover rate | 14 | % | 23 | % | 19 | % | 30 | % | 15 | % | 62 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 191
Selected data for a share | Six Months | For the Period | |||||||||||||||||||
of capital stock outstanding | Ended | Year Ended | 4/6/18* to | ||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | |||||||||||||||||
R6 Shares | |||||||||||||||||||||
Net asset value, beginning of period | $ | 13.13 | $ | 11.80 | $ | 9.89 | $ | 12.21 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||
Net investment income (loss) (a) | 0.05 | 0.07 | 0.20 | 0.14 | |||||||||||||||||
Net realized and unrealized gain (loss) | 0.42 | 1.34 | 1.94 | (2.28 | ) | ||||||||||||||||
Total from investment operations | 0.47 | 1.41 | 2.14 | (2.14 | ) | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | — | (0.08 | ) | (0.23 | ) | (0.18 | ) | ||||||||||||||
Total distributions | — | (0.08 | ) | (0.23 | ) | (0.18 | ) | ||||||||||||||
Net asset value, end of period | $ | 13.60 | $ | 13.13 | $ | 11.80 | $ | 9.89 | |||||||||||||
Total Return (c) | 3.58 | % | 11.97 | % | 21.69 | % | -17.52 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 548 | $ | 544 | $ | 597 | $ | 494 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||
Net expenses | 1.15 | % | 1.20 | % | 1.18 | % | 1.16 | % | |||||||||||||
Gross expenses | 1.68 | % | 1.87 | % | 3.23 | % | 7.68 | % | |||||||||||||
Net investment income (loss) | 0.80 | % | 0.63 | % | 1.80 | % | 1.71 | % | |||||||||||||
Portfolio turnover rate | 14 | % | 23 | % | 19 | % | 30 | % |
† | Unaudited |
* | The inception date for the R6 Shares was April 6, 2018. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
192 Semi-Annual Report
LAZARD EMERGING MARKETS EQUITY ADVANTAGE PORTFOLIO
Selected data for a | ||||||||||||||||||||||||
share of capital stock | Six Months | |||||||||||||||||||||||
outstanding | Ended | Year Ended | ||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.79 | $ | 11.84 | $ | 10.03 | $ | 12.27 | $ | 8.71 | $ | 8.06 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | 0.12 | 0.10 | 0.24 | 0.19 | 0.12 | 0.12 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 1.39 | 1.97 | 1.80 | (2.19 | ) | 3.58 | 0.67 | |||||||||||||||||
Total from investment operations | 1.51 | 2.07 | 2.04 | (2.00 | ) | 3.70 | 0.79 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.10 | ) | (0.23 | ) | (0.22 | ) | (0.13 | ) | (0.13 | ) | |||||||||||||
Net realized gains | — | (0.02 | ) | — | — | (b) | — | — | ||||||||||||||||
Return of capital | — | — | — | (0.02 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||||
Total distributions | — | (0.12 | ) | (0.23 | ) | (0.24 | ) | (0.14 | ) | (0.14 | ) | |||||||||||||
Net asset value, end of period | $ | 15.30 | $ | 13.79 | $ | 11.84 | $ | 10.03 | $ | 12.27 | $ | 8.71 | ||||||||||||
Total Return (c) | 10.95 | % | 17.50 | % | 20.34 | % | -16.23 | % | 42.52 | % | 9.83 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 73,046 | $ | 27,898 | $ | 9,190 | $ | 3,107 | $ | 4,191 | $ | 2,896 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 0.97 | % | 1.10 | % | 1.10 | % | 1.10 | % | 1.10 | % | 1.10 | % | ||||||||||||
Gross expenses | 1.18 | % | 1.97 | % | 3.19 | % | 5.60 | % | 6.29 | % | 9.57 | % | ||||||||||||
Net investment income (loss) | 1.66 | % | 0.87 | % | 2.15 | % | 1.59 | % | 1.15 | % | 1.41 | % | ||||||||||||
Portfolio turnover rate | 48 | % | 91 | % | 59 | % | 61 | % | 52 | % | 57 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 193
Selected data for a | ||||||||||||||||||||||||
share of capital stock | Six Months | |||||||||||||||||||||||
outstanding | Ended | Year Ended | ||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Open Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.79 | $ | 11.85 | $ | 10.04 | $ | 12.27 | $ | 8.71 | $ | 8.06 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | 0.02 | 0.09 | 0.21 | 0.16 | 0.08 | 0.09 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 1.47 | 1.93 | 1.79 | (2.18 | ) | 3.58 | 0.68 | |||||||||||||||||
Total from investment operations | 1.49 | 2.02 | 2.00 | (2.02 | ) | 3.66 | 0.77 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.06 | ) | (0.19 | ) | (0.19 | ) | (0.09 | ) | (0.11 | ) | |||||||||||||
Net realized gains | — | (0.02 | ) | — | — | (b) | — | — | ||||||||||||||||
Return of capital | — | — | — | (0.02 | ) | (0.01 | ) | (0.01 | ) | |||||||||||||||
Total distributions | — | (0.08 | ) | (0.19 | ) | (0.21 | ) | (0.10 | ) | (0.12 | ) | |||||||||||||
Net asset value, end of period | $ | 15.28 | $ | 13.79 | $ | 11.85 | $ | 10.04 | $ | 12.27 | $ | 8.71 | ||||||||||||
Total Return (c) | 10.80 | % | 17.10 | % | 19.97 | % | -16.40 | % | 42.09 | % | 9.51 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,018 | $ | 876 | $ | 1,162 | $ | 476 | $ | 356 | $ | 120 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 1.30 | % | 1.35 | % | 1.38 | % | 1.40 | % | 1.40 | % | 1.40 | % | ||||||||||||
Gross expenses | 1.79 | % | 2.68 | % | 4.32 | % | 8.09 | % | 12.17 | % | 20.02 | % | ||||||||||||
Net investment income (loss) | 0.25 | % | 0.76 | % | 1.87 | % | 1.35 | % | 0.72 | % | 1.06 | % | ||||||||||||
Portfolio turnover rate | 48 | % | 91 | % | 59 | % | 61 | % | 52 | % | 57 | % |
† | Unaudited |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
194 Semi-Annual Report
LAZARD EMERGING MARKETS EQUITY PORTFOLIO
Selected data for a | ||||||||||||||||||||||||
share of capital stock | Six Months | |||||||||||||||||||||||
outstanding | Ended | Year Ended | ||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 18.03 | $ | 18.48 | $ | 16.06 | $ | 20.02 | $ | 15.96 | $ | 13.44 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | 0.23 | 0.37 | 0.42 | 0.39 | 0.33 | 0.24 | ^ | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.73 | (0.44 | ) | 2.45 | (4.01 | ) | 4.13 | 2.52 | ||||||||||||||||
Total from investment operations | 1.96 | (0.07 | ) | 2.87 | (3.62 | ) | 4.46 | 2.76 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.38 | ) | (0.45 | ) | (0.34 | ) | (0.40 | ) | (0.24 | ) | |||||||||||||
Total distributions | — | (0.38 | ) | (0.45 | ) | (0.34 | ) | (0.40 | ) | (0.24 | ) | |||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | |||||||||||||||||
Net asset value, end of period | $ | 19.99 | $ | 18.03 | $ | 18.48 | $ | 16.06 | $ | 20.02 | $ | 15.96 | ||||||||||||
Total Return (c) | 10.87 | % | -0.10 | % | 18.04 | % | -18.09 | % | 28.02 | % | 20.52 | %^ | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 3,767,682 | $ | 3,923,878 | $ | 6,645,429 | $ | 7,573,861 | $ | 11,285,358 | $ | 9,311,693 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 1.10 | % | 1.09 | % | 1.08 | % | 1.07 | % | 1.08 | % | 1.09 | %^ | ||||||||||||
Gross expenses | 1.10 | % | 1.09 | % | 1.08 | % | 1.07 | % | 1.08 | % | 1.09 | % | ||||||||||||
Net investment income (loss) | 2.38 | % | 2.36 | % | 2.42 | % | 2.12 | % | 1.82 | % | 1.59 | %^ | ||||||||||||
Portfolio turnover rate | 19 | % | 39 | % | 20 | % | 16 | % | 14 | % | 12 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 195
Selected data for a | ||||||||||||||||||||||||
share of capital stock | Six Months | |||||||||||||||||||||||
outstanding | Ended | Year Ended | ||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Open Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 18.58 | $ | 19.03 | $ | 16.53 | $ | 20.60 | $ | 16.41 | $ | 13.82 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | 0.21 | 0.34 | 0.39 | 0.35 | 0.29 | 0.21 | ^ | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.78 | (0.45 | ) | 2.52 | (4.12 | ) | 4.25 | 2.58 | ||||||||||||||||
Total from investment operations | 1.99 | (0.11 | ) | 2.91 | (3.77 | ) | 4.54 | 2.79 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.34 | ) | (0.41 | ) | (0.30 | ) | (0.35 | ) | (0.20 | ) | |||||||||||||
Total distributions | — | (0.34 | ) | (0.41 | ) | (0.30 | ) | (0.35 | ) | (0.20 | ) | |||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | |||||||||||||||||
Net asset value, end of period | $ | 20.57 | $ | 18.58 | $ | 19.03 | $ | 16.53 | $ | 20.60 | $ | 16.41 | ||||||||||||
Total Return (c) | 10.71 | % | -0.34 | % | 17.73 | % | -18.32 | % | 27.73 | % | 20.17 | %^ | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 419,010 | $ | 421,990 | $ | 969,347 | $ | 1,004,569 | $ | 1,515,715 | $ | 1,287,552 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 1.35 | % | 1.34 | % | 1.34 | % | 1.32 | % | 1.34 | % | 1.35 | %^ | ||||||||||||
Gross expenses | 1.35 | % | 1.34 | % | 1.34 | % | 1.32 | % | 1.34 | % | 1.35 | % | ||||||||||||
Net investment income (loss) | 2.14 | % | 2.08 | % | 2.19 | % | 1.85 | % | 1.55 | % | 1.35 | %^ | ||||||||||||
Portfolio turnover rate | 19 | % | 39 | % | 20 | % | 16 | % | 14 | % | 12 | % |
The accompanying notes are an integral part of these financial statements.
196 Semi-Annual Report
Selected data for a | ||||||||||||||||||||||||
share of capital stock | Six Months | |||||||||||||||||||||||
outstanding | Ended | Year Ended | ||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
R6 Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 18.04 | $ | 18.47 | $ | 16.06 | $ | 20.02 | $ | 15.96 | $ | 13.44 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | 0.23 | 0.40 | 0.40 | 0.40 | 0.35 | 0.23 | ^ | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.73 | (0.45 | ) | 2.46 | (4.02 | ) | 4.11 | 2.53 | ||||||||||||||||
Total from investment operations | 1.96 | (0.05 | ) | 2.86 | (3.62 | ) | 4.46 | 2.76 | ||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.38 | ) | (0.45 | ) | (0.34 | ) | (0.40 | ) | (0.24 | ) | |||||||||||||
Total distributions | — | (0.38 | ) | (0.45 | ) | (0.34 | ) | (0.40 | ) | (0.24 | ) | |||||||||||||
Net asset value, end of period | $ | 20.00 | $ | 18.04 | $ | 18.47 | $ | 16.06 | $ | 20.02 | $ | 15.96 | ||||||||||||
Total Return (c) | 10.86 | % | 0.01 | % | 17.98 | % | -18.09 | % | 28.02 | % | 20.52 | %^ | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 14,699 | $ | 23,631 | $ | 184,337 | $ | 232,507 | $ | 372,568 | $ | 197,959 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 1.10 | % | 1.08 | % | 1.08 | % | 1.07 | % | 1.08 | % | 1.09 | %^ | ||||||||||||
Gross expenses | 1.11 | % | 1.09 | % | 1.08 | % | 1.07 | % | 1.08 | % | 1.10 | % | ||||||||||||
Net investment income (loss) | 2.41 | % | 2.52 | % | 2.30 | % | 2.15 | % | 1.91 | % | 1.54 | %^ | ||||||||||||
Portfolio turnover rate | 19 | % | 39 | % | 20 | % | 16 | % | 14 | % | 12 | % |
† | Unaudited |
^ | Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the period. |
The amount of the reimbursement was less than $0.005 per share. There was no impact on the total return of the Portfolio. The impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%. | |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 197
LAZARD EMERGING MARKETS STRATEGIC EQUITY PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.80 | $ | 12.18 | $ | 10.02 | $ | 12.93 | $ | 9.60 | $ | 8.53 | |||||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) (a) | 0.06 | 0.13 | 0.13 | 0.17 | 0.10 | 0.08 | ^ | ||||||||||||||||||||
Net realized and unrealized gain (loss) | 0.59 | 1.66 | 2.29 | (2.89 | ) | 3.35 | 1.04 | ||||||||||||||||||||
Total from investment operations | 0.65 | 1.79 | 2.42 | (2.72 | ) | 3.45 | 1.12 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | — | (0.17 | ) | (0.26 | ) | (0.19 | ) | (0.12 | ) | (0.05 | ) | ||||||||||||||||
Total distributions | — | (0.17 | ) | (0.26 | ) | (0.19 | ) | (0.12 | ) | (0.05 | ) | ||||||||||||||||
Redemption fees | — | — | — | — | — | — | (b | ) | |||||||||||||||||||
Net asset value, end of period | $ | 14.45 | $ | 13.80 | $ | 12.18 | $ | 10.02 | $ | 12.93 | $ | 9.60 | |||||||||||||||
Total Return (c) | 4.71 | % | 14.74 | % | 24.21 | % | -21.05 | % | 35.98 | % | 13.12 | % | ^ | ||||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 73,807 | $ | 74,406 | $ | 96,399 | $ | 291,404 | $ | 385,492 | $ | 282,473 | |||||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||||
Net expenses | 1.20 | % | 1.22 | % | 1.26 | % | 1.15 | % | 1.21 | % | 1.25 | % | ^ | ||||||||||||||
Gross expenses | 1.41 | % | 1.46 | % | 1.26 | % | 1.15 | % | 1.21 | % | 1.26 | % | |||||||||||||||
Net investment income (loss) | 0.83 | % | 1.18 | % | 1.16 | % | 1.39 | % | 0.90 | % | 0.88 | % | ^ | ||||||||||||||
Portfolio turnover rate | 78 | % | 53 | % | 56 | % | 61 | % | 57 | % | 47 | % |
The accompanying notes are an integral part of these financial statements.
198 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||||
Open Shares | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.85 | $ | 12.23 | $ | 10.03 | $ | 12.95 | $ | 9.62 | $ | 8.55 | |||||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) (a) | 0.04 | 0.10 | 0.14 | 0.12 | 0.06 | 0.05 | ^ | ||||||||||||||||||||
Net realized and unrealized gain (loss) | 0.59 | 1.65 | 2.29 | (2.89 | ) | 3.34 | 1.04 | ||||||||||||||||||||
Total from investment operations | 0.63 | 1.75 | 2.43 | (2.77 | ) | 3.40 | 1.09 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | — | (0.13 | ) | (0.23 | ) | (0.15 | ) | (0.07 | ) | (0.02 | ) | ||||||||||||||||
Return of capital | — | — | — | — | — | — | (b | ) | |||||||||||||||||||
Total distributions | — | (0.13 | ) | (0.23 | ) | (0.15 | ) | (0.07 | ) | (0.02 | ) | ||||||||||||||||
Redemption fees | — | — | — | — | — | — | (b | ) | |||||||||||||||||||
Net asset value, end of period | $ | 14.48 | $ | 13.85 | $ | 12.23 | $ | 10.03 | $ | 12.95 | $ | 9.62 | |||||||||||||||
Total Return (c) | 4.55 | % | 14.39 | % | 24.21 | % | -21.39 | % | 35.38 | % | 12.74 | % | ^ | ||||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 3,371 | $ | 4,019 | $ | 5,977 | $ | 6,200 | $ | 9,728 | $ | 6,804 | |||||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||||
Net expenses | 1.45 | % | 1.48 | % | 1.52 | % | 1.53 | % | 1.60 | % | 1.60 | % | ^ | ||||||||||||||
Gross expenses | 1.77 | % | 1.83 | % | 1.77 | % | 1.53 | % | 1.61 | % | 1.89 | % | |||||||||||||||
Net investment income (loss) | 0.53 | % | 0.88 | % | 1.27 | % | 1.01 | % | 0.50 | % | 0.54 | % | ^ | ||||||||||||||
Portfolio turnover rate | 78 | % | 53 | % | 56 | % | 61 | % | 57 | % | 47 | % |
† | Unaudited |
^ | Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the period. The amount of the reimbursement was less than $0.005 per share. There was no impact on the total return of the Portfolio. The impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 199
LAZARD EQUITY FRANCHISE PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | For the Period 9/29/17* to | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |||||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.17 | $ | 10.17 | $ | 8.84 | $ | 10.38 | $ | 10.00 | ||||||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) (a) | 0.11 | 0.10 | 0.19 | 0.20 | 0.03 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | 1.61 | 0.02 | 1.73 | (0.75 | ) | 0.40 | ||||||||||||||||||||
Total from investment operations | 1.72 | 0.12 | 1.92 | (0.55 | ) | 0.43 | ||||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | — | (0.07 | ) | (0.15 | ) | (0.21 | ) | (0.03 | ) | |||||||||||||||||
Net realized gains | — | (0.05 | ) | (0.44 | ) | (0.78 | ) | (0.02 | ) | |||||||||||||||||
Total distributions | — | (0.12 | ) | (0.59 | ) | (0.99 | ) | (0.05 | ) | |||||||||||||||||
Net asset value, end of period | $ | 11.89 | $ | 10.17 | $ | 10.17 | $ | 8.84 | $ | 10.38 | ||||||||||||||||
Total Return (b) | 16.91 | % | 1.15 | % | 21.70 | % | -5.10 | % | 4.25 | % | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 103,277 | $ | 91,720 | $ | 39,878 | $ | 8,341 | $ | 5,566 | ||||||||||||||||
Ratios to average net assets (c): | ||||||||||||||||||||||||||
Net expenses | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||||||||
Gross expenses | 0.99 | % | 1.11 | % | 1.36 | % | 3.42 | % | 3.21 | % | ||||||||||||||||
Net investment income (loss) | 1.96 | % | 1.09 | % | 1.95 | % | 1.94 | % | 1.26 | % | ||||||||||||||||
Portfolio turnover rate | 36 | % | 79 | % | 95 | % | 97 | % | 10 | % |
The accompanying notes are an integral part of these financial statements.
200 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | For the Period 9/29/17* to | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | |||||||||||||||||||||
Open Shares | ||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.17 | $ | 10.17 | $ | 8.84 | $ | 10.38 | $ | 10.00 | ||||||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) (a) | 0.10 | 0.09 | 0.16 | 0.19 | 0.03 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | 1.61 | — | (d) | 1.73 | (0.77 | ) | 0.39 | |||||||||||||||||||
Total from investment operations | 1.71 | 0.09 | 1.89 | (0.58 | ) | 0.42 | ||||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | — | (0.04 | ) | (0.12 | ) | (0.18 | ) | (0.02 | ) | |||||||||||||||||
Net realized gains | — | (0.05 | ) | (0.44 | ) | (0.78 | ) | (0.02 | ) | |||||||||||||||||
Total distributions | — | (0.09 | ) | (0.56 | ) | (0.96 | ) | (0.04 | ) | |||||||||||||||||
Net asset value, end of period | $ | 11.88 | $ | 10.17 | $ | 10.17 | $ | 8.84 | $ | 10.38 | ||||||||||||||||
Total Return (b) | 16.81 | % | 0.90 | % | 21.40 | % | -5.34 | % | 4.18 | % | ||||||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 162 | $ | 129 | $ | 312 | $ | 190 | $ | 111 | ||||||||||||||||
Ratios to average net assets (c): | ||||||||||||||||||||||||||
Net expenses | 1.20 | % | 1.20 | % | 1.18 | % | 1.20 | % | 1.20 | % | ||||||||||||||||
Gross expenses | 4.57 | % | 3.64 | % | 5.78 | % | 10.19 | % | 23.62 | % | ||||||||||||||||
Net investment income (loss) | 1.76 | % | 1.00 | % | 1.64 | % | 1.75 | % | 1.14 | % | ||||||||||||||||
Portfolio turnover rate | 36 | % | 79 | % | 95 | % | 97 | % | 10 | % |
† | Unaudited |
* | The Portfolio commenced operations on September 29, 2017. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(c) | Annualized for a period of less than one year except for non-recurring expenses. |
(d) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 201
LAZARD GLOBAL EQUITY SELECT PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.32 | $ | 14.56 | $ | 11.72 | $ | 13.04 | $ | 10.53 | $ | 10.33 | |||||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) (a) | 0.05 | 0.07 | 0.11 | 0.09 | 0.07 | 0.09 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | 1.95 | 2.24 | 2.84 | (1.02 | ) | 2.93 | 0.18 | ||||||||||||||||||||
Total from investment operations | 2.00 | 2.31 | 2.95 | (0.93 | ) | 3.00 | 0.27 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | — | (0.05 | ) | (0.10 | ) | (0.06 | ) | (0.10 | ) | (0.07 | ) | ||||||||||||||||
Net realized gains | — | (0.50 | ) | — | (0.32 | ) | (0.39 | ) | — | ||||||||||||||||||
Return of capital | — | — | (0.01 | ) | (0.01 | ) | — | — | |||||||||||||||||||
Total distributions | — | (0.55 | ) | (0.11 | ) | (0.39 | ) | (0.49 | ) | (0.07 | ) | ||||||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||||
Net asset value, end of period | $ | 18.32 | $ | 16.32 | $ | 14.56 | $ | 11.72 | $ | 13.04 | $ | 10.53 | |||||||||||||||
Total Return (c) | 12.25 | % | 15.97 | % | 25.20 | % | -7.12 | % | 28.52 | % | 2.66 | % | |||||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 105,196 | $ | 92,418 | $ | 82,057 | $ | 65,382 | $ | 58,201 | $ | 31,197 | |||||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||||
Net expenses | 0.85 | % | 0.90 | % | 1.01 | % | 1.05 | % | 1.05 | % | 1.07 | % | |||||||||||||||
Gross expenses | 0.85 | % | 0.95 | % | 1.08 | % | 1.08 | % | 1.30 | % | 1.75 | % | |||||||||||||||
Net investment income (loss) | 0.61 | % | 0.46 | % | 0.85 | % | 0.70 | % | 0.60 | % | 0.86 | % | |||||||||||||||
Portfolio turnover rate | 12 | % | 90 | % | 25 | % | 34 | % | 34 | % | 40 | % |
The accompanying notes are an integral part of these financial statements.
202 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||||
Open Shares | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.33 | $ | 14.57 | $ | 11.73 | $ | 13.04 | $ | 10.54 | $ | 10.34 | |||||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) (a) | 0.03 | 0.05 | 0.08 | 0.05 | 0.04 | 0.06 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | 1.94 | 2.22 | 2.83 | (1.01 | ) | 2.91 | 0.18 | ||||||||||||||||||||
Total from investment operations | 1.97 | 2.27 | 2.91 | (0.96 | ) | 2.95 | 0.24 | ||||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | — | (0.01 | ) | (0.07 | ) | (0.02 | ) | (0.06 | ) | (0.04 | ) | ||||||||||||||||
Net realized gains | — | (0.50 | ) | — | (0.32 | ) | (0.39 | ) | — | ||||||||||||||||||
Return of capital | — | — | — | (b) | (0.01 | ) | — | — | |||||||||||||||||||
Total distributions | — | (0.51 | ) | (0.07 | ) | (0.35 | ) | (0.45 | ) | (0.04 | ) | ||||||||||||||||
Net asset value, end of period | $ | 18.30 | $ | 16.33 | $ | 14.57 | $ | 11.73 | $ | 13.04 | $ | 10.54 | |||||||||||||||
Total Return (c) | 12.06 | % | 15.67 | % | 24.82 | % | -7.33 | % | 28.01 | % | 2.35 | % | |||||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,388 | $ | 1,158 | $ | 933 | $ | 763 | $ | 711 | $ | 515 | |||||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||||
Net expenses | 1.15 | % | 1.15 | % | 1.30 | % | 1.35 | % | 1.35 | % | 1.37 | % | |||||||||||||||
Gross expenses | 1.46 | % | 1.74 | % | 2.36 | % | 2.80 | % | 3.70 | % | 5.38 | % | |||||||||||||||
Net investment income (loss) | 0.30 | % | 0.35 | % | 0.56 | % | 0.41 | % | 0.32 | % | 0.56 | % | |||||||||||||||
Portfolio turnover rate | 12 | % | 90 | % | 25 | % | 34 | % | �� | 34 | % | 40 | % |
† | Unaudited |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 203
LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.65 | $ | 15.78 | $ | 13.51 | $ | 15.99 | $ | 14.17 | $ | 13.42 | |||||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) (a) | 0.26 | * | 0.27 | 0.40 | 0.41 | 0.39 | 0.31 | ^ | |||||||||||||||||||
Net realized and unrealized gain (loss) | 1.00 | (1.02 | ) | 2.57 | (0.96 | ) | 2.54 | 0.92 | |||||||||||||||||||
Total from investment operations | 1.26 | (0.75 | ) | 2.97 | (0.55 | ) | 2.93 | 1.23 | |||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.05 | ) | (0.04 | ) | (0.70 | ) | (0.72 | ) | (0.29 | ) | (0.34 | ) | |||||||||||||||
Net realized gains | — | (0.27 | ) | — | (1.21 | ) | (0.82 | ) | (0.14 | ) | |||||||||||||||||
Return of capital | — | (0.07 | ) | — | — | — | — | ||||||||||||||||||||
Total distributions | (0.05 | ) | (0.38 | ) | (0.70 | ) | (1.93 | ) | (1.11 | ) | (0.48 | ) | |||||||||||||||
Redemption fees | — | — | — | — | — | — | (b | ) | |||||||||||||||||||
Net asset value, end of period | $ | 15.86 | $ | 14.65 | $ | 15.78 | $ | 13.51 | $ | 15.99 | $ | 14.17 | |||||||||||||||
Total Return (c) | 8.57 | %* | –4.48 | % | 22.26 | % | –3.68 | % | 20.73 | % | 9.30 | % | ^ | ||||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 8,187,495 | $ | 7,289,680 | $ | 7,277,512 | $ | 4,924,359 | $ | 4,778,042 | $ | 2,931,161 | |||||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||||
Net expenses | 0.95 | % | 0.96 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.96 | % | ^ | ||||||||||||||
Gross expenses | 0.95 | % | 0.96 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.96 | % | |||||||||||||||
Net investment income (loss) | 3.48 | %* | 1.87 | % | 2.63 | % | 2.65 | % | 2.44 | % | 2.29 | % | ^ | ||||||||||||||
Portfolio turnover rate | 9 | % | 42 | % | 33 | % | 49 | % | 33 | % | 35 | % |
The accompanying notes are an integral part of these financial statements.
204 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||||
Open Shares | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.66 | $ | 15.79 | $ | 13.52 | $ | 16.01 | $ | 14.20 | $ | 13.45 | |||||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) (a) | 0.24 | * | 0.23 | 0.36 | 0.37 | 0.35 | 0.29 | ^ | |||||||||||||||||||
Net realized and unrealized gain (loss) | 1.00 | (1.01 | ) | 2.57 | (0.97 | ) | 2.55 | 0.91 | |||||||||||||||||||
Total from investment operations | 1.24 | (0.78 | ) | 2.93 | (0.60 | ) | 2.90 | 1.20 | |||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | (0.03 | ) | (0.03 | ) | (0.66 | ) | (0.68 | ) | (0.27 | ) | (0.31 | ) | |||||||||||||||
Net realized gains | — | (0.25 | ) | — | (1.21 | ) | (0.82 | ) | (0.14 | ) | |||||||||||||||||
Return of capital | — | (0.07 | ) | — | — | — | — | ||||||||||||||||||||
Total distributions | (0.03 | ) | (0.35 | ) | (0.66 | ) | (1.89 | ) | (1.09 | ) | (0.45 | ) | |||||||||||||||
Redemption fees | — | — | — | — | — | — | (b | ) | |||||||||||||||||||
Net asset value, end of period | $ | 15.87 | $ | 14.66 | $ | 15.79 | $ | 13.52 | $ | 16.01 | $ | 14.20 | |||||||||||||||
Total Return (c) | 8.43 | %* | –4.68 | % | 21.94 | % | –3.98 | % | 20.47 | % | 9.01 | % | ^ | ||||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 298,584 | $ | 307,757 | $ | 448,387 | $ | 426,749 | $ | 633,243 | $ | 462,613 | |||||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||||
Net expenses | 1.21 | % | 1.21 | % | 1.20 | % | 1.20 | % | 1.21 | % | 1.22 | % | ^ | ||||||||||||||
Gross expenses | 1.21 | % | 1.21 | % | 1.20 | % | 1.20 | % | 1.21 | % | 1.22 | % | |||||||||||||||
Net investment income (loss) | 3.14 | %* | 1.57 | % | 2.39 | % | 2.36 | % | 2.16 | % | 2.09 | % | ^ | ||||||||||||||
Portfolio turnover rate | 9 | % | 42 | % | 33 | % | 49 | % | 33 | % | 35 | % |
† | Unaudited. |
^ | Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the period. The amount of the reimbursement was less than $0.005 per share. There was no impact on the total return of the Portfolio. The impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%. |
* | Includes $0.04 of refunds received as a result European Union dividend withholding tax reclaims filings. There was a 0.27% impact on the total return of the Portfolio. There was a 0.53% impact to the Institutional Share Class and a 0.52% impact to the Open Share Class on the net investment income (loss) ratio of the Portfolio. Refer to Note 2b in the Notes to Financial Statements for further information. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Return for a period of less than one year is not annualized. |
(d) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 205
LAZARD GLOBAL STRATEGIC EQUITY PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20* | 12/31/19* | 12/31/18* | 12/31/17* | 12/31/16* | |||||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 12.12 | $ | 10.30 | $ | 8.20 | $ | 11.55 | $ | 47.95 | $ | 48.35 | |||||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) (a) | 0.03 | 0.02 | 0.10 | 0.05 | 0.40 | 0.35 | |||||||||||||||||||||
Net realized and unrealized gain (loss) | 1.23 | 2.17 | 2.30 | (0.90 | ) | 11.20 | (0.40 | ) | |||||||||||||||||||
Total from investment operations | 1.26 | 2.19 | 2.40 | (0.85 | ) | 11.60 | (0.05 | ) | |||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | — | (0.01 | ) | (0.10 | ) | (0.05 | ) | (1.00 | ) | (0.35 | ) | ||||||||||||||||
Net realized gains | — | (0.36 | ) | (0.20 | ) | (2.45 | ) | (47.00 | ) | — | |||||||||||||||||
Total distributions | — | (0.37 | ) | (0.30 | ) | (2.50 | ) | (48.00 | ) | (0.35 | ) | ||||||||||||||||
Net asset value, end of period | $ | 13.38 | $ | 12.12 | $ | 10.30 | $ | 8.20 | $ | 11.55 | $ | 47.95 | |||||||||||||||
Total Return (b) | 10.40 | % | 21.48 | % | 29.19 | % | –9.16 | % | 24.20 | % | –0.15 | % | |||||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 17,005 | $ | 4,076 | $ | 3,185 | $ | 2,505 | $ | 2,750 | $ | 19,816 | |||||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||||
Net expenses | 0.95 | % | 0.97 | % | 1.00 | % | 1.05 | % | 1.10 | % | 1.10 | % | |||||||||||||||
Gross expenses | 2.44 | % | 5.74 | % | 6.07 | % | 6.41 | % | 2.06 | % | 2.03 | % | |||||||||||||||
Net investment income (loss) | 0.44 | % | 0.23 | % | 1.01 | % | 0.60 | % | 0.76 | % | 0.76 | % | |||||||||||||||
Portfolio turnover rate | 26 | % | 59 | % | 49 | % | 46 | % | 65 | % | 67 | % | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
206 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20* | 12/31/19* | 12/31/18* | 12/31/17* | 12/31/16* | |||||||||||||||||||||
Open Shares | |||||||||||||||||||||||||||
Net asset value, beginning of period | $ | 12.02 | $ | 10.25 | $ | 8.15 | $ | 11.50 | $ | 47.95 | $ | 48.35 | |||||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) (a) | 0.04 | — | (d) | 0.05 | 0.05 | 0.15 | 0.20 | ||||||||||||||||||||
Net realized and unrealized gain (loss) | 1.23 | 2.13 | 2.30 | (0.95 | ) | 11.25 | (0.40 | ) | |||||||||||||||||||
Total from investment operations | 1.27 | 2.13 | 2.35 | (0.90 | ) | 11.40 | (0.20 | ) | |||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||||
Net investment income | — | — | (d) | (0.05 | ) | — | (d) | (0.85 | ) | (0.20 | ) | ||||||||||||||||
Net realized gains | — | (0.36 | ) | (0.20 | ) | (2.45 | ) | (47.00 | ) | — | |||||||||||||||||
Total distributions | — | (0.36 | ) | (0.25 | ) | (2.45 | ) | (47.85 | ) | (0.20 | ) | ||||||||||||||||
Net asset value, end of period | $ | 13.29 | $ | 12.02 | $ | 10.25 | $ | 8.15 | $ | 11.50 | $ | 47.95 | |||||||||||||||
Total Return (b) | 10.57 | % | 20.96 | % | 29.01 | % | –9.39 | % | 23.72 | % | –0.45 | % | |||||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 228 | $ | 184 | $ | 144 | $ | 131 | $ | 149 | $ | 114 | |||||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||||
Net expenses | 0.62 | % | 1.22 | % | 1.29 | % | 1.35 | % | 1.41 | % | 1.40 | % | |||||||||||||||
Gross expenses | 4.99 | % | 8.76 | % | 13.26 | % | 14.05 | % | 12.33 | % | 13.31 | % | |||||||||||||||
Net investment income (loss) | 0.63 | % | –0.01 | % | 0.72 | % | 0.29 | % | 0.34 | % | 0.39 | % | |||||||||||||||
Portfolio turnover rate | 26 | % | 59 | % | 49 | % | 46 | % | 65 | % | 67 | % |
† | Unaudited. |
* | On December 17, 2020, the Fund effected a 1:5 reverse share split. All per share data prior to December 17, 2020 has been adjusted to reflect the reverse share split. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(c) | Annualized for a period of less than one year. |
(d) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 207
LAZARD INTERNATIONAL EQUITY ADVANTAGE PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.32 | $ | 9.99 | $ | 8.70 | $ | 10.92 | $ | 8.91 | $ | 9.21 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.17 | 0.20 | 0.22 | 0.24 | 0.19 | 0.18 | |||||||||||||||||||
Net realized and unrealized gain (loss) | 1.06 | 0.33 | 1.29 | (2.01 | ) | 2.03 | (0.28 | ) | |||||||||||||||||
Total from investment operations | 1.23 | 0.53 | 1.51 | (1.77 | ) | 2.22 | (0.10 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.20 | ) | (0.22 | ) | (0.33 | ) | (0.21 | ) | (0.20 | ) | ||||||||||||||
Net realized gains | — | — | — | (0.12 | ) | — | — | ||||||||||||||||||
Total distributions | — | (0.20 | ) | (0.22 | ) | (0.45 | ) | (0.21 | ) | (0.20 | ) | ||||||||||||||
Net asset value, end of period | $ | 11.55 | $ | 10.32 | $ | 9.99 | $ | 8.70 | $ | 10.92 | $ | 8.91 | |||||||||||||
Total Return (b) | 11.92 | % | 5.41 | % | 17.37 | % | –16.26 | % | 24.98 | % | –1.13 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 2,768 | $ | 2,472 | $ | 2,408 | $ | 2,051 | $ | 2,508 | $ | 1,969 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | |||||||||||||
Gross expenses | 6.49 | % | 8.57 | % | 8.40 | % | 7.60 | % | 8.91 | % | 13.12 | % | |||||||||||||
Net investment income (loss) | 3.08 | % | 2.24 | % | 2.30 | % | 2.29 | % | 1.89 | % | 2.08 | % | |||||||||||||
Portfolio turnover rate | 52 | % | 109 | % | 66 | % | 72 | % | 88 | % | 92 | % |
The accompanying notes are an integral part of these financial statements.
208 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.32 | $ | 9.99 | $ | 8.70 | $ | 10.92 | $ | 8.91 | $ | 9.21 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.16 | 0.18 | 0.19 | 0.21 | 0.16 | 0.15 | |||||||||||||||||||
Net realized and unrealized gain (loss) | 1.06 | 0.33 | 1.29 | (2.01 | ) | 2.03 | (0.28 | ) | |||||||||||||||||
Total from investment operations | 1.22 | 0.51 | 1.48 | (1.80 | ) | 2.19 | (0.13 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.18 | ) | (0.19 | ) | (0.30 | ) | (0.18 | ) | (0.17 | ) | ||||||||||||||
Net realized gains | — | — | — | (0.12 | ) | — | — | ||||||||||||||||||
Total distributions | — | (0.18 | ) | (0.19 | ) | (0.42 | ) | (0.18 | ) | (0.17 | ) | ||||||||||||||
Net asset value, end of period | $ | 11.54 | $ | 10.32 | $ | 9.99 | $ | 8.70 | $ | 10.92 | $ | 8.91 | |||||||||||||
Total Return (b) | 11.82 | % | 5.14 | % | 17.03 | % | –16.52 | % | 24.60 | % | –1.42 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 133 | $ | 119 | $ | 113 | $ | 97 | $ | 116 | $ | 93 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 1.15 | % | 1.15 | % | 1.18 | % | 1.20 | % | 1.20 | % | 1.20 | % | |||||||||||||
Gross expenses | 10.09 | % | 12.55 | % | 17.72 | % | 17.67 | % | 20.85 | % | 25.85 | % | |||||||||||||
Net investment income (loss) | 2.82 | % | 1.99 | % | 2.02 | % | 1.99 | % | 1.58 | % | 1.74 | % | |||||||||||||
Portfolio turnover rate | 52 | % | 109 | % | 66 | % | 72 | % | 88 | % | 92 | % |
† | Unaudited. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(c) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 209
LAZARD INTERNATIONAL EQUITY CONCENTRATED PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.01 | $ | 10.30 | $ | 8.34 | $ | 10.43 | $ | 8.54 | $ | 8.27 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.04 | 0.09 | 0.19 | 0.14 | 0.13 | 0.14 | |||||||||||||||||||
Net realized and unrealized gain (loss) | 0.54 | (0.05 | ) | 1.94 | (1.84 | ) | 1.86 | 0.25 | |||||||||||||||||
Total from investment operations | 0.58 | 0.04 | 2.13 | (1.70 | ) | 1.99 | 0.39 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.33 | ) | (0.17 | ) | (0.17 | ) | (0.10 | ) | (0.12 | ) | ||||||||||||||
Net realized gains | — | — | — | (0.22 | ) | — | — | ||||||||||||||||||
Total distributions | — | (0.33 | ) | (0.17 | ) | (0.39 | ) | (0.10 | ) | (0.12 | ) | ||||||||||||||
Net asset value, end of period | $ | 10.59 | $ | 10.01 | $ | 10.30 | $ | 8.34 | $ | 10.43 | $ | 8.54 | |||||||||||||
Total Return (b) | 5.79 | % | 0.47 | % | 25.56 | % | –16.20 | % | 23.29 | % | 4.74 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,971 | $ | 13,648 | $ | 97,815 | $ | 49,105 | $ | 69,440 | $ | 15,473 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 0.91 | % | 0.94 | % | 0.95 | % | 1.00 | % | 1.05 | % | 1.05 | % | |||||||||||||
Gross expenses | 2.82 | % | 1.17 | % | 1.05 | % | 1.13 | % | 1.34 | % | 2.29 | % | |||||||||||||
Net investment income (loss) | 0.86 | % | 0.95 | % | 2.00 | % | 1.45 | % | 1.35 | % | 1.64 | % | |||||||||||||
Portfolio turnover rate | 37 | % | 93 | % | 72 | % | 76 | % | 81 | % | 92 | % |
The accompanying notes are an integral part of these financial statements.
210 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.04 | $ | 10.32 | $ | 8.35 | $ | 10.45 | $ | 8.56 | $ | 8.29 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.06 | 0.07 | 0.18 | 0.09 | 0.10 | 0.11 | |||||||||||||||||||
Net realized and unrealized gain (loss) | 0.52 | (0.05 | ) | 1.93 | (1.82 | ) | 1.86 | 0.26 | |||||||||||||||||
Total from investment operations | 0.58 | 0.02 | 2.11 | (1.73 | ) | 1.96 | 0.37 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.30 | ) | (0.14 | ) | (0.15 | ) | (0.07 | ) | (0.10 | ) | ||||||||||||||
Net realized gains | — | — | — | (0.22 | ) | — | — | ||||||||||||||||||
Total distributions | — | (0.30 | ) | (0.14 | ) | (0.37 | ) | (0.07 | ) | (0.10 | ) | ||||||||||||||
Net asset value, end of period | $ | 10.62 | $ | 10.04 | $ | 10.32 | $ | 8.35 | $ | 10.45 | $ | 8.56 | |||||||||||||
Total Return (b) | 5.78 | % | 0.33 | % | 25.28 | % | –16.47 | % | 22.87 | % | 4.41 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 394 | $ | 413 | $ | 430 | $ | 399 | $ | 220 | $ | 114 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 1.16 | % | 1.02 | % | 1.24 | % | 1.29 | % | 1.35 | % | 1.35 | % | |||||||||||||
Gross expenses | 5.42 | % | 2.54 | % | 3.67 | % | 5.24 | % | 8.15 | % | 11.98 | % | |||||||||||||
Net investment income (loss) | 1.23 | % | 0.76 | % | 1.87 | % | 0.96 | % | 1.04 | % | 1.32 | % | |||||||||||||
Portfolio turnover rate | 37 | % | 93 | % | 72 | % | 76 | % | 81 | % | 92 | % |
† | Unaudited. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(c) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 211
LAZARD INTERNATIONAL EQUITY PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 20.02 | $ | 18.61 | $ | 15.68 | $ | 19.61 | $ | 16.20 | $ | 17.08 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.33 | * | 0.21 | 0.37 | 0.37 | 0.26 | 0.27^ | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.76 | 1.41 | 2.95 | (3.06 | ) | 3.43 | (0.98 | ) | |||||||||||||||||
Total from investment operations | 1.09 | 1.62 | 3.32 | (2.69 | ) | 3.69 | (0.71 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.21 | ) | (0.39 | ) | (0.42 | ) | (0.28 | ) | (0.17 | ) | ||||||||||||||
Net realized gains | — | — | — | (0.82 | ) | — | — | ||||||||||||||||||
Total distributions | — | (0.21 | ) | (0.39 | ) | (1.24 | ) | (0.28 | ) | (0.17 | ) | ||||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 21.11 | $ | 20.02 | $ | 18.61 | $ | 15.68 | $ | 19.61 | $ | 16.20 | |||||||||||||
Total Return (c) | 5.44 | %* | 8.76 | % | 21.19 | % | –13.61 | %# | 22.81 | % | –4.18 | %^ | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 2,574,140 | $ | 2,812,450 | $ | 2,495,021 | $ | 2,102,735 | $ | 2,835,262 | $ | 1,511,516 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.82 | % | 0.82 | % | 0.82 | % | 0.81 | % | 0.81 | % | 0.82 | %^ | |||||||||||||
Gross expenses | 0.82 | % | 0.82 | % | 0.82 | % | 0.81 | % | 0.81 | % | 0.84 | % | |||||||||||||
Net investment income (loss) | 3.19 | %* | 1.21 | % | 2.13 | % | 1.94 | % | 1.44 | % | 1.62 | %^ | |||||||||||||
Portfolio turnover rate | 20 | % | 38 | % | 37 | % | 36 | % | 31 | % | 25 | % |
The accompanying notes are an integral part of these financial statements.
212 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 20.26 | $ | 18.84 | $ | 15.87 | $ | 19.83 | $ | 16.38 | $ | 17.23 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.31 | * | 0.17 | 0.33 | 0.32 | 0.30 | 0.13^ | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.77 | 1.41 | 2.98 | (3.08 | ) | 3.38 | (0.90 | ) | |||||||||||||||||
Total from investment operations | 1.08 | 1.58 | 3.31 | (2.76 | ) | 3.68 | (0.77 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.16 | ) | (0.34 | ) | (0.38 | ) | (0.23 | ) | (0.08 | ) | ||||||||||||||
Net realized gains | — | — | — | (0.82 | ) | — | — | ||||||||||||||||||
Total distributions | — | (0.16 | ) | (0.34 | ) | (1.20 | ) | (0.23 | ) | (0.08 | ) | ||||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 21.34 | $ | 20.26 | $ | 18.84 | $ | 15.87 | $ | 19.83 | $ | 16.38 | |||||||||||||
Total Return (c) | 5.33 | %* | 8.43 | % | 20.89 | % | –13.83 | %# | 22.50 | % | –4.46 | %^ | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 121,149 | $ | 120,781 | $ | 257,308 | $ | 227,483 | $ | 275,014 | $ | 1,073,486 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 1.08 | % | 1.08 | % | 1.07 | % | 1.06 | % | 1.06 | % | 1.07 | %^ | |||||||||||||
Gross expenses | 1.08 | % | 1.08 | % | 1.07 | % | 1.06 | % | 1.06 | % | 1.10 | % | |||||||||||||
Net investment income (loss) | 2.94 | %* | 0.97 | % | 1.84 | % | 1.67 | % | 1.69 | % | 0.80 | %^ | |||||||||||||
Portfolio turnover rate | 20 | % | 38 | % | 37 | % | 36 | % | 31 | % | 25 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 213
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
R6 Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 19.99 | $ | 18.58 | $ | 15.66 | $ | 19.59 | $ | 16.18 | $ | 17.07 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.32 | * | 0.21 | 0.38 | 0.36 | 0.31 | 0.31^ | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.77 | 1.41 | 2.93 | (3.05 | ) | 3.38 | (1.02 | ) | |||||||||||||||||
Total from investment operations | 1.09 | 1.62 | 3.31 | (2.69 | ) | 3.69 | (0.71 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.21 | ) | (0.39 | ) | (0.42 | ) | (0.28 | ) | (0.18 | ) | ||||||||||||||
Net realized gains | — | — | — | (0.82 | ) | — | — | ||||||||||||||||||
Total distributions | — | (0.21 | ) | (0.39 | ) | (1.24 | ) | (0.28 | ) | (0.18 | ) | ||||||||||||||
Net asset value, end of period | $ | 21.08 | $ | 19.99 | $ | 18.58 | $ | 15.66 | $ | 19.59 | $ | 16.18 | |||||||||||||
Total Return (c) | 5.45 | %* | 8.79 | % | 21.17 | % | –13.62 | %# | 22.85 | % | –4.17 | %^ | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 114,497 | $ | 129,419 | $ | 107,574 | $ | 106,516 | $ | 693,744 | $ | 79,119 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.80 | % | 0.81 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | %^ | |||||||||||||
Gross expenses | 0.82 | % | 0.83 | % | 0.82 | % | 0.81 | % | 0.81 | % | 0.86 | % | |||||||||||||
Net investment income (loss) | 3.14 | %* | 1.21 | % | 2.19 | % | 1.84 | % | 1.68 | % | 1.88 | %^ | |||||||||||||
Portfolio turnover rate | 20 | % | 38 | % | 37 | % | 36 | % | 31 | % | 25 | % |
† | Unaudited. |
^ | Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the period. The amount of the reimbursement was less than $0.005 per share. There was no impact on the total return of the Portfolio. There was a 0.02%, 0.03% and 0.02% impact on the net expenses and net investment income (loss) ratios of the Portfolio’s Institutional, Open and R6 Shares, respectively. |
# | The Portfolio received settlement proceeds from a foreign exchange trading class action lawsuit. The proceeds from the settlement represent a realized gain and were recorded in the period received. There was a 0.16%, 0.16% and 0.33% impact on the total return of the Portfolio’s Institutional, Open and R6 Shares, respectively. |
* | Includes $0.05 of refunds in the Institutional and Open Share Class and $0.04 refund in the R6 Share Class received as a result European Union dividend withholding tax reclaims filings. There was a 0.25% impact on the total return of the Portfolio. There was a 0.45% impact to the Institutional Share Class and a 0.46% impact to the Open and R6 Share Class on the net investment income (loss) ratio of the Portfolio. Refer to Note 2b in the Notes to Financial Statements for further information. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
214 Semi-Annual Report
LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.53 | $ | 10.75 | $ | 9.13 | $ | 11.02 | $ | 8.65 | $ | 8.80 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.14 | 0.11 | 0.23 | 0.18 | 0.13 | 0.12 | |||||||||||||||||||
Net realized and unrealized gain (loss) | 0.41 | 0.78 | 1.62 | (1.82 | ) | 2.31 | (0.17 | ) | |||||||||||||||||
Total from investment operations | 0.55 | 0.89 | 1.85 | (1.64 | ) | 2.44 | (0.05 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.11 | ) | (0.23 | ) | (0.25 | ) | (0.07 | ) | (0.10 | ) | ||||||||||||||
Total distributions | — | (0.11 | ) | (0.23 | ) | (0.25 | ) | (0.07 | ) | (0.10 | ) | ||||||||||||||
Net asset value, end of period | $ | 12.08 | $ | 11.53 | $ | 10.75 | $ | 9.13 | $ | 11.02 | $ | 8.65 | |||||||||||||
Total Return (b) | 4.77 | % | 8.33 | % | 20.32 | % | –14.90 | % | 28.31 | % | –0.63 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 84,947 | $ | 92,121 | $ | 93,586 | $ | 74,582 | $ | 53,929 | $ | 28,299 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 0.89 | % | 0.90 | % | 0.97 | % | 1.05 | % | 1.05 | % | 1.05 | % | |||||||||||||
Gross expenses | 0.89 | % | 0.95 | % | 0.99 | % | 1.05 | % | 1.31 | % | 1.79 | % | |||||||||||||
Net investment income (loss) | 2.41 | % | 1.10 | % | 2.29 | % | 1.73 | % | 1.27 | % | 1.36 | % | |||||||||||||
Portfolio turnover rate | 19 | % | 34 | % | 42 | % | 32 | % | 30 | % | 42 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 215
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.58 | $ | 10.80 | $ | 9.17 | $ | 11.03 | $ | 8.66 | $ | 8.82 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.13 | 0.08 | 0.19 | 0.15 | 0.10 | 0.10 | |||||||||||||||||||
Net realized and unrealized gain (loss) | 0.41 | 0.78 | 1.64 | (1.82 | ) | 2.31 | (0.19 | ) | |||||||||||||||||
Total from investment operations | 0.54 | 0.86 | 1.83 | (1.67 | ) | 2.41 | (0.09 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.08 | ) | (0.20 | ) | (0.19 | ) | (0.04 | ) | (0.07 | ) | ||||||||||||||
Total distributions | — | (0.08 | ) | (0.20 | ) | (0.19 | ) | (0.04 | ) | (0.07 | ) | ||||||||||||||
Net asset value, end of period | $ | 12.12 | $ | 11.58 | $ | 10.80 | $ | 9.17 | $ | 11.03 | $ | 8.66 | |||||||||||||
Total Return (b) | 4.66 | % | 8.02 | % | 19.97 | % | –15.16 | % | 27.89 | % | –1.03 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 2,471 | $ | 2,868 | $ | 2,502 | $ | 1,502 | $ | 2,831 | $ | 2,092 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 1.15 | % | 1.15 | % | 1.28 | % | 1.35 | % | 1.35 | % | 1.35 | % | |||||||||||||
Gross expenses | 1.30 | % | 1.38 | % | 1.74 | % | 1.83 | % | 2.07 | % | 2.59 | % | |||||||||||||
Net investment income (loss) | 2.17 | % | 0.80 | % | 1.87 | % | 1.42 | % | 1.01 | % | 1.13 | % | |||||||||||||
Portfolio turnover rate | 19 | % | 34 | % | 42 | % | 32 | % | 30 | % | 42 | % |
† | Unaudited. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(c) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
216 Semi-Annual Report
LAZARD INTERNATIONAL EQUITY VALUE PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | For the Period 10/31/18* to | |||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | ||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Net asset value, beginning of period | $ | 9.36 | $ | 9.95 | $ | 9.14 | $ | 10.00 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) (a) | 0.13 | 0.15 | 0.28 | 0.01 | ||||||||||||||||
Net realized and unrealized gain (loss) | 0.75 | (0.54 | ) | 1.01 | (0.86 | ) | ||||||||||||||
Total from investment operations | 0.88 | (0.39 | ) | 1.29 | (0.85 | ) | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | (0.20 | ) | (0.48 | ) | (0.01 | ) | |||||||||||||
Total distributions | — | (0.20 | ) | (0.48 | ) | (0.01 | ) | |||||||||||||
Net asset value, end of period | $ | 10.24 | $ | 9.36 | $ | 9.95 | $ | 9.14 | ||||||||||||
Total Return (b)(c) | 9.40 | % | –3.81 | % | 14.14 | % | –8.49 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 3,141 | $ | 2,711 | $ | 13,132 | $ | 22,945 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||
Net expenses | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | ||||||||||||
Gross expenses | 5.26 | % | 6.59 | % | 2.01 | % | 1.34 | % | ||||||||||||
Net investment income (loss) | 2.55 | % | 1.75 | % | 2.87 | % | 0.72 | % | ||||||||||||
Portfolio turnover rate | 30 | % | 86 | % | 104 | % | 37 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 217
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | For the Period 10/31/18* to | |||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | ||||||||||||||||
Open Shares | ||||||||||||||||||||
Net asset value, beginning of period | $ | 9.36 | $ | 9.95 | $ | 9.13 | $ | 10.00 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) (a) | 0.11 | 0.15 | 0.21 | — | (e) | |||||||||||||||
Net realized and unrealized gain (loss) | 0.77 | (0.56 | ) | 1.06 | (0.86 | ) | ||||||||||||||
Total from investment operations | 0.88 | (0.41 | ) | 1.27 | (0.86 | ) | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | (0.18 | ) | (0.45 | ) | (0.01 | ) | |||||||||||||
Total distributions | — | (0.18 | ) | (0.45 | ) | (0.01 | ) | |||||||||||||
Net asset value, end of period | $ | 10.24 | $ | 9.36 | $ | 9.95 | $ | 9.13 | ||||||||||||
Total Return (b) (c) | 9.40 | % | –4.06 | % | 13.98 | % | –8.63 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 46 | $ | 40 | $ | 141 | $ | 38 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||
Net expenses | 1.20 | % | 1.21 | % | 1.13 | % | 1.20 | % | ||||||||||||
Gross expenses | 15.58 | % | 14.84 | % | 15.82 | % | 7.91 | % | ||||||||||||
Net investment income (loss) | 2.29 | % | 1.71 | % | 2.15 | % | 0.03 | % | ||||||||||||
Portfolio turnover rate | 30 | % | 86 | % | 104 | % | 37 | % |
† | Unaudited. |
* | The Portfolio commenced operations on October 31, 2018. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(c) | In 2020, the Portfolio’s total return includes a payment by an affiliate of 2.83% fo Institutional Shares and 2.71% for Open Shares. Excluding this voluntary reimbursement payment, total return would have been –6.64% for Institutional Shares and –6.77% for Open Shares. |
(d) | Annualized for a period of less than one year except for non-recurring expenses. |
(e) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
218 Semi-Annual Report
LAZARD INTERNATIONAL QUALITY GROWTH PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | For the Period 12/31/18* to | |||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | ||||||||||||||||
Institutional Shares | ||||||||||||||||||||
Net asset value, beginning of period | $ | 15.59 | $ | 12.69 | $ | 9.98 | $ | 10.00 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) (a) | 0.06 | 0.03 | 0.08 | — | ||||||||||||||||
Net realized and unrealized gain (loss) | 1.56 | 3.01 | 2.95 | (0.02 | ) | |||||||||||||||
Total from investment operations | 1.62 | 3.04 | 3.03 | (0.02 | ) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | (0.01 | ) | (0.27 | ) | — | ||||||||||||||
Net realized gains | — | (0.13 | ) | (0.05 | ) | — | ||||||||||||||
Total distributions | — | (0.14 | ) | (0.32 | ) | — | ||||||||||||||
Net asset value, end of period | $ | 17.21 | $ | 15.59 | $ | 12.69 | $ | 9.98 | ||||||||||||
Total Return (b) | 10.39 | % | 23.95 | % | 30.32 | % | –0.20 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 28,747 | $ | 10,473 | $ | 3,958 | $ | 149 | ||||||||||||
Ratios to average net assets (c): | ||||||||||||||||||||
Net expenses | 0.85 | % | 0.85 | % | 0.85 | % | 0.00 | % | ||||||||||||
Gross expenses | 1.42 | % | 3.58 | % | 8.16 | % | 8.45 | % | ||||||||||||
Net investment income (loss) | 0.71 | % | 0.24 | % | 0.65 | % | 0.00 | % | ||||||||||||
Portfolio turnover rate | 6 | % | 12 | % | 20 | % | 0 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 219
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | For the Period 12/31/18* to | |||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | ||||||||||||||||
Open Shares | ||||||||||||||||||||
Net asset value, beginning of period | $ | 15.51 | $ | 12.65 | $ | 10.00 | $ | 10.00 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) (a) | 0.03 | (0.02 | ) | 0.07 | — | |||||||||||||||
Net realized and unrealized gain (loss) | 1.56 | 3.01 | 2.90 | — | (d) | |||||||||||||||
Total from investment operations | 1.59 | 2.99 | 2.97 | — | (d) | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | (0.27 | ) | — | |||||||||||||||
Net realized gains | — | (0.13 | ) | (0.05 | ) | — | ||||||||||||||
Total distributions | — | (0.13 | ) | (0.32 | ) | — | ||||||||||||||
Net asset value, end of period | $ | 17.10 | $ | 15.51 | $ | 12.65 | $ | 10.00 | ||||||||||||
Total Return (b) | 10.25 | % | 23.63 | % | 29.66 | % | 0.00 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 332 | $ | 291 | $ | 10 | $ | 1 | ||||||||||||
Ratios to average net assets (c): | ||||||||||||||||||||
Net expenses | 1.10 | % | 1.10 | % | 1.10 | % | 0.00 | % | ||||||||||||
Gross expenses | 2.88 | % | 9.57 | % | 142.50 | % | 0.40 | % | ||||||||||||
Net investment income (loss) | 0.38 | % | (0.15 | )% | 0.60 | % | 0.00 | % | ||||||||||||
Portfolio turnover rate | 6 | % | 12 | % | 20 | % | 0 | % |
† | Unaudited. |
* | The Portfolio commenced operations on December 31, 2018. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(c) | Annualized for a period of less than one year except for non-recurring expenses. |
(d) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
220 Semi-Annual Report
LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.50 | $ | 12.19 | $ | 9.95 | $ | 13.79 | $ | 10.10 | $ | 10.90 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.06 | * | 0.06 | 0.13 | 0.12 | 0.10 | 0.12 | ^ | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.55 | 1.53 | 2.42 | (3.51 | ) | 3.59 | (0.62 | ) | |||||||||||||||||
Total from investment operations | 1.61 | 1.59 | 2.55 | (3.39 | ) | 3.69 | (0.50 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.28 | ) | (0.05 | ) | (0.27 | ) | — | (0.30 | ) | |||||||||||||||
Net realized gains | — | — | (0.26 | ) | (0.18 | ) | — | — | |||||||||||||||||
Total distributions | — | (0.28 | ) | (0.31 | ) | (0.45 | ) | — | (0.30 | ) | |||||||||||||||
Net asset value, end of period | $ | 15.11 | $ | 13.50 | $ | 12.19 | $ | 9.95 | $ | 13.79 | $ | 10.10 | |||||||||||||
Total Return (b) | 11.93 | %* | 13.44 | % | 26.01 | % | –24.88 | %# | 36.53 | % | –4.64 | % | ^ | ||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 27,199 | $ | 29,374 | $ | 37,677 | $ | 35,121 | $ | 41,267 | $ | 37,049 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 1.14 | % | 1.15 | % | 1.14 | % | 1.08 | % | 1.09 | % | 0.96 | % | ^ | ||||||||||||
Gross expenses | 1.28 | % | 1.29 | % | 1.15 | % | 1.08 | % | 1.09 | % | 1.06 | % | |||||||||||||
Net investment income (loss) | 0.85 | %* | 0.57 | % | 1.14 | % | 0.96 | % | 0.85 | % | 1.14 | % | ^ | ||||||||||||
Portfolio turnover rate | 22 | % | 50 | % | 37 | % | 59 | % | 35 | % | 63 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 221
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.50 | $ | 12.19 | $ | 9.97 | $ | 13.82 | $ | 10.15 | $ | 10.93 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.05 | * | 0.04 | 0.10 | 0.11 | 0.07 | 0.10 | ^ | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.54 | 1.52 | 2.43 | (3.54 | ) | 3.60 | (0.63 | ) | |||||||||||||||||
Total from investment operations | 1.59 | 1.56 | 2.53 | (3.43 | ) | 3.67 | (0.53 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.25 | ) | (0.05 | ) | (0.24 | ) | — | (0.25 | ) | |||||||||||||||
Net realized gains | — | — | (0.26 | ) | (0.18 | ) | — | — | |||||||||||||||||
Total distributions | — | (0.25 | ) | (0.31 | ) | (0.42 | ) | — | (0.25 | ) | |||||||||||||||
Net asset value, end of period | $ | 15.09 | $ | 13.50 | $ | 12.19 | $ | 9.97 | $ | 13.82 | $ | 10.15 | |||||||||||||
Total Return (b) | 11.78 | %* | 13.15 | % | 25.76 | % | –25.09 | %# | 36.16 | % | –4.92 | % | ^ | ||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 13,386 | $ | 12,581 | $ | 19,780 | $ | 20,265 | $ | 42,362 | $ | 44,523 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 1.39 | % | 1.40 | % | 1.39 | % | 1.34 | % | 1.34 | % | 1.21 | % | ^ | ||||||||||||
Gross expenses | 1.55 | % | 1.56 | % | 1.43 | % | 1.34 | % | 1.34 | % | 1.30 | % | |||||||||||||
Net investment income (loss) | 0.64 | %* | 0.33 | % | 0.86 | % | 0.83 | % | 0.61 | % | 0.91 | % | ^ | ||||||||||||
Portfolio turnover rate | 22 | % | 50 | % | 37 | % | 59 | % | 35 | % | 63 | % |
† | Unaudited. |
^ | Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the period. The impact on the net investment income per share amount was $0.01 per share. There was a 0.10% and 0.09% impact on the total return of the Institutional and Open Shares classes, respectively, of the Portfolio. There was a 0.10% and 0.09% impact on the net expenses and net investment income (loss) ratios of the Portfolio’s Institutional and Open Shares, respectively. |
# | The Portfolio received settlement proceeds from a foreign exchange trading classaction lawsuit. The proceeds from the settlement represented a realized gain and were recorded in the period received. There was a 0.46% and 0.53% impact on the total return of the Portfolio’s Institutional and Open Shares, respectively. |
* | Includes $0.02 of refunds in the Institutional Share Class and $0.03 of refunds in the Open Share Class received as a result European Union dividend withholding tax reclaims filings. There was a 0.15% impact on the total return of the Portfolio. There was a 0.31% impact to the Institutional Share Class and a 0.30% impact to the Open Share Class on the net investment income (loss) ratio. Refer to Note 2b in the Notes to Financial Statements for further information. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(c) | Annualized for a period of less than one year. |
(d) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
222 Semi-Annual Report
LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.83 | $ | 15.38 | $ | 12.89 | $ | 15.70 | $ | 12.44 | $ | 13.33 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.26 | * | 0.17 | 0.24 | 0.21 | 0.17 | 0.20 | ^ | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.00 | 1.45 | 2.53 | (1.85 | ) | 3.29 | (0.89 | ) | |||||||||||||||||
Total from investment operations | 1.26 | 1.62 | 2.77 | (1.64 | ) | 3.46 | (0.69 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.17 | ) | (0.28 | ) | (0.21 | ) | (0.20 | ) | (0.20 | ) | ||||||||||||||
Net realized gains | — | — | — | (0.96 | ) | — | — | ||||||||||||||||||
Total distributions | — | (0.17 | ) | (0.28 | ) | (1.17 | ) | (0.20 | ) | (0.20 | ) | ||||||||||||||
Redemption fees | — | — | — | — | — | — | (b | ) | |||||||||||||||||
Net asset value, end of period | $ | 18.09 | $ | 16.83 | $ | 15.38 | $ | 12.89 | $ | 15.70 | $ | 12.44 | |||||||||||||
Total Return (c) | 7.49 | %* | 10.58 | % | 21.55 | % | –10.35 | % | 27.85 | % | –5.17 | % | ^ | ||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 5,904,700 | $ | 5,270,611 | $ | 5,505,271 | $ | 4,630,334 | $ | 5,911,184 | $ | 5,114,357 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.80 | % | 0.81 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.81 | % | ^ | ||||||||||||
Gross expenses | 0.80 | % | 0.81 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.81 | % | |||||||||||||
Net investment income (loss) | 2.99 | %* | 1.18 | % | 1.66 | % | 1.36 | % | 1.20 | % | 1.56 | % | ^ | ||||||||||||
Portfolio turnover rate | 13 | % | 37 | % | 36 | % | 40 | % | 44 | % | 47 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 223
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.99 | $ | 15.52 | $ | 13.01 | $ | 15.83 | $ | 12.55 | $ | 13.44 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.24 | * | 0.14 | 0.21 | 0.17 | 0.14 | 0.18 | ^ | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.00 | 1.46 | 2.55 | (1.86 | ) | 3.30 | (0.90 | ) | |||||||||||||||||
Total from investment operations | 1.24 | 1.60 | 2.76 | (1.69 | ) | 3.44 | (0.72 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.13 | ) | (0.25 | ) | (0.17 | ) | (0.16 | ) | (0.17 | ) | ||||||||||||||
Net realized gains | — | — | — | (0.96 | ) | — | — | ||||||||||||||||||
Total distributions | — | (0.13 | ) | (0.25 | ) | (1.13 | ) | (0.16 | ) | (0.17 | ) | ||||||||||||||
Redemption fees | — | — | — | — | — | — | (b | ) | |||||||||||||||||
Net asset value, end of period | $ | 18.23 | $ | 16.99 | $ | 15.52 | $ | 13.01 | $ | 15.83 | $ | 12.55 | |||||||||||||
Total Return (c) | 7.30 | %* | 10.34 | % | 21.21 | % | –10.55 | % | 27.44 | % | –5.37 | % | ^ | ||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 516,631 | $ | 535,285 | $ | 682,035 | $ | 832,548 | $ | 1,216,861 | $ | 1,591,016 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 1.05 | % | 1.06 | % | 1.06 | % | 1.05 | % | 1.06 | % | 1.06 | % | ^ | ||||||||||||
Gross expenses | 1.05 | % | 1.06 | % | 1.06 | % | 1.05 | % | 1.06 | % | 1.06 | % | |||||||||||||
Net investment income (loss) | 2.70 | %* | 0.94 | % | 1.47 | % | 1.10 | % | 0.97 | % | 1.34 | % | ^ | ||||||||||||
Portfolio turnover rate | 13 | % | 37 | % | 36 | % | 40 | % | 44 | % | 47 | % |
The accompanying notes are an integral part of these financial statements.
224 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
R6 Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.85 | $ | 15.39 | $ | 12.90 | $ | 15.71 | $ | 12.45 | $ | 13.34 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.26 | * | 0.17 | 0.23 | 0.21 | 0.16 | 0.19 | ^ | |||||||||||||||||
Net realized and unrealized gain (loss) | 1.00 | 1.46 | 2.54 | (1.85 | ) | 3.30 | (0.88 | ) | |||||||||||||||||
Total from investment operations | 1.26 | 1.63 | 2.77 | (1.64 | ) | 3.46 | (0.69 | ) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.17 | ) | (0.28 | ) | (0.21 | ) | (0.20 | ) | (0.20 | ) | ||||||||||||||
Net realized gains | — | — | — | (0.96 | ) | — | — | ||||||||||||||||||
Total distributions | — | (0.17 | ) | (0.28 | ) | (1.17 | ) | (0.20 | ) | (0.20 | ) | ||||||||||||||
Redemption fees | — | — | — | — | — | — | (b | ) | |||||||||||||||||
Net asset value, end of period | $ | 18.11 | $ | 16.85 | $ | 15.39 | $ | 12.90 | $ | 15.71 | $ | 12.45 | |||||||||||||
Total Return (c) | 7.48 | %* | 10.64 | % | 21.54 | % | –10.35 | % | 27.82 | % | –5.17 | % | ^ | ||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 126,919 | $ | 118,678 | $ | 120,118 | $ | 97,394 | $ | 110,383 | $ | 96,284 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.80 | % | 0.81 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.81 | % | ^ | ||||||||||||
Gross expenses | 0.80 | % | 0.82 | % | 0.81 | % | 0.81 | % | 0.82 | % | 0.82 | % | |||||||||||||
Net investment income (loss) | 2.98 | %* | 1.16 | % | 1.61 | % | 1.34 | % | 1.15 | % | 1.46 | % | ^ | ||||||||||||
Portfolio turnover rate | 13 | % | 37 | % | 36 | % | 40 | % | 44 | % | 47 | % |
† | Unaudited. |
^ | Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the period. The amount of the reimbursement was less than $0.005 per share. There was no impact on the total return of the Portfolio. The impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%. |
* | Includes $0.06 of refunds received as a result European Union dividend withholding tax reclaims filings. There was a 0.34% impact on the total return of the Portfolio. There was a 0.66% impact to the Institutional Share Class, 0.64% impact to the Open Share Class, and 0.65% impact to the R6 Share Class on the net investment income (loss) ratio of the Portfolio. Refer to Note 2b in the Notes to Financial Statements for further information. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 225
LAZARD MANAGED EQUITY VOLATILITY PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.78 | $ | 12.66 | $ | 10.55 | $ | 11.57 | $ | 9.99 | $ | 9.59 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.12 | 0.21 | 0.21 | 0.19 | 0.19 | 0.18 | |||||||||||||||||||
Net realized and unrealized gain (loss) | 1.05 | (0.87 | ) | 2.08 | (1.03 | ) | 1.87 | 0.44 | |||||||||||||||||
Total from investment operations | 1.17 | (0.66 | ) | 2.29 | (0.84 | ) | 2.06 | 0.62 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.09 | ) | (0.18 | ) | (0.16 | ) | (0.17 | ) | (0.22 | ) | ||||||||||||||
Net realized gains | — | (0.13 | ) | — | (b) | (0.02 | ) | (0.31 | ) | — | |||||||||||||||
Total distributions | — | (0.22 | ) | (0.18 | ) | (0.18 | ) | (0.48 | ) | (0.22 | ) | ||||||||||||||
Net asset value, end of period | $ | 12.95 | $ | 11.78 | $ | 12.66 | $ | 10.55 | $ | 11.57 | $ | 9.99 | |||||||||||||
Total Return (c) | 9.93 | % | –5.18 | % | 21.69 | % | –7.21 | % | 20.57 | % | 6.45 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 27,409 | $ | 25,737 | $ | 34,354 | $ | 20,709 | $ | 4,180 | $ | 2,431 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | |||||||||||||
Gross expenses | 1.29 | % | 1.23 | % | 1.36 | % | 1.64 | % | 6.51 | % | 10.42 | % | |||||||||||||
Net investment income (loss) | 1.99 | % | 1.83 | % | 1.72 | % | 1.66 | % | 1.71 | % | 1.82 | % | |||||||||||||
Portfolio turnover rate | 58 | % | 138 | % | 103 | % | 122 | % | 87 | % | 91 | % |
The accompanying notes are an integral part of these financial statements.
226 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 11.78 | $ | 12.65 | $ | 10.54 | $ | 11.56 | $ | 9.99 | $ | 9.59 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.11 | 0.19 | 0.17 | 0.15 | 0.16 | 0.15 | |||||||||||||||||||
Net realized and unrealized gain (loss) | 1.03 | (0.87 | ) | 2.08 | (1.02 | ) | 1.85 | 0.44 | |||||||||||||||||
Total from investment operations | 1.14 | (0.68 | ) | 2.25 | (0.87 | ) | 2.01 | 0.59 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.06 | ) | (0.14 | ) | (0.13 | ) | (0.13 | ) | (0.19 | ) | ||||||||||||||
Net realized gains | — | (0.13 | ) | — | (b) | (0.02 | ) | (0.31 | ) | — | |||||||||||||||
Total distributions | — | (0.19 | ) | (0.14 | ) | (0.15 | ) | (0.44 | ) | (0.19 | ) | ||||||||||||||
Net asset value, end of period | $ | 12.92 | $ | 11.78 | $ | 12.65 | $ | 10.54 | $ | 11.56 | $ | 9.99 | |||||||||||||
Total Return (c) | 9.68 | % | –5.34 | % | 21.36 | % | –7.50 | % | 20.11 | % | 6.14 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 81 | $ | 76 | $ | 231 | $ | 183 | $ | 315 | $ | 172 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 1.00 | % | 1.00 | % | 1.03 | % | 1.05 | % | 1.05 | % | 1.05 | % | |||||||||||||
Gross expenses | 7.09 | % | 4.39 | % | 5.81 | % | 5.86 | % | 12.07 | % | 17.27 | % | |||||||||||||
Net investment income (loss) | 1.76 | % | 1.63 | % | 1.46 | % | 1.28 | % | 1.42 | % | 1.52 | % | |||||||||||||
Portfolio turnover rate | 58 | % | 138 | % | 103 | % | 122 | % | 87 | % | 91 | % |
† | Unaudited. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 227
LAZARD US EQUITY CONCENTRATED PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 18.05 | $ | 16.84 | $ | 12.89 | $ | 15.31 | $ | 14.16 | $ | 13.83 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.04 | 0.12 | 0.13 | 0.18 | 0.14 | 0.06 | ^ | ||||||||||||||||||
Net realized and unrealized gain (loss) | 2.82 | 1.39 | 3.96 | (1.11 | ) | 2.05 | 0.97 | ||||||||||||||||||
Total from investment operations | 2.86 | 1.51 | 4.09 | (0.93 | ) | 2.19 | 1.03 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.11 | ) | (0.14 | ) | (0.20 | ) | (0.14 | ) | (0.05 | ) | ||||||||||||||
Net realized gains | — | (0.19 | ) | — | (1.29 | ) | (0.90 | ) | (0.65 | ) | |||||||||||||||
Total distributions | — | (0.30 | ) | (0.14 | ) | (1.49 | ) | (1.04 | ) | (0.70 | ) | ||||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 20.91 | $ | 18.05 | $ | 16.84 | $ | 12.89 | $ | 15.31 | $ | 14.16 | |||||||||||||
Total Return (c) | 15.84 | % | 8.98 | % | 31.72 | % | –6.07 | % | 15.49 | % | 7.37 | %^ | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,924,455 | $ | 1,936,367 | $ | 1,271,509 | $ | 1,040,851 | $ | 1,508,581 | $ | 1,230,377 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.75 | % | 0.76 | % | 0.76 | % | 0.75 | % | 0.75 | % | 0.77 | %^ | |||||||||||||
Gross expenses | 0.75 | % | 0.76 | % | 0.76 | % | 0.75 | % | 0.75 | % | 0.77 | % | |||||||||||||
Net investment income (loss) | 0.42 | % | 0.72 | % | 0.85 | % | 1.14 | % | 0.90 | % | 0.39 | %^ | |||||||||||||
Portfolio turnover rate | 11 | % | 43 | % | 33 | % | 69 | % | 86 | % | 84 | % |
The accompanying notes are an integral part of these financial statements.
228 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 18.19 | $ | 16.98 | $ | 12.99 | $ | 15.42 | $ | 14.25 | $ | 13.92 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.02 | 0.08 | 0.09 | 0.13 | 0.10 | 0.02 | ^ | ||||||||||||||||||
Net realized and unrealized gain (loss) | 2.83 | 1.38 | 3.99 | (1.11 | ) | 2.07 | 0.97 | ||||||||||||||||||
Total from investment operations | 2.85 | 1.46 | 4.08 | (0.98 | ) | 2.17 | 0.99 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.06 | ) | (0.09 | ) | (0.16 | ) | (0.10 | ) | (0.01 | ) | ||||||||||||||
Net realized gains | — | (0.19 | ) | — | (1.29 | ) | (0.90 | ) | (0.65 | ) | |||||||||||||||
Total distributions | — | (0.25 | ) | (0.09 | ) | (1.45 | ) | (1.00 | ) | (0.66 | ) | ||||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 21.04 | $ | 18.19 | $ | 16.98 | $ | 12.99 | $ | 15.42 | $ | 14.25 | |||||||||||||
Total Return (c) | 15.67 | % | 8.63 | % | 31.42 | % | –6.35 | % | 15.22 | % | 7.06%^ | ||||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 36,143 | $ | 34,358 | $ | 46,840 | $ | 50,981 | $ | 87,603 | $ | 105,619 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 1.02 | % | 1.02 | % | 1.04 | % | 1.03 | % | 1.03 | % | 1.03 | %^ | |||||||||||||
Gross expenses | 1.02 | % | 1.02 | % | 1.04 | % | 1.03 | % | 1.03 | % | 1.03 | % | |||||||||||||
Net investment income (loss) | 0.18 | % | 0.47 | % | 0.55 | % | 0.85 | % | 0.62 | % | 0.17 | %^ | |||||||||||||
Portfolio turnover rate | 11 | % | 43 | % | 33 | % | 69 | % | 86 | % | 84 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 229
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | For the Period 11/15/16* to | ||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
R6 Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 18.09 | $ | 16.89 | $ | 12.92 | $ | 15.34 | $ | 14.18 | $ | 14.77 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.04 | 0.12 | 0.13 | 0.17 | 0.14 | — | ^(b) | ||||||||||||||||||
Net realized and unrealized gain (loss) | 2.83 | 1.38 | 3.98 | (1.10 | ) | 2.06 | 0.03 | ||||||||||||||||||
Total from investment operations | 2.87 | 1.50 | 4.11 | (0.93 | ) | 2.20 | 0.03 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.11 | ) | (0.14 | ) | (0.20 | ) | (0.14 | ) | (0.03 | ) | ||||||||||||||
Net realized gains | — | (0.19 | ) | — | (1.29 | ) | (0.90 | ) | (0.59 | ) | |||||||||||||||
Total distributions | — | (0.30 | ) | (0.14 | ) | (1.49 | ) | (1.04 | ) | (0.62 | ) | ||||||||||||||
Net asset value, end of period | $ | 20.96 | $ | 18.09 | $ | 16.89 | $ | 12.92 | $ | 15.34 | $ | 14.18 | |||||||||||||
Total Return (c) | 15.87 | % | 8.90 | % | 31.79 | % | –6.08 | % | 15.52 | % | 0.17 | %^ | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 2,525 | $ | 2,177 | $ | 2,091 | $ | 1,900 | $ | 361 | $ | 140 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.75 | % | 0.76 | % | 0.76 | % | 0.75 | % | 0.75 | % | 0.77 | %^ | |||||||||||||
Gross expenses | 0.88 | % | 0.92 | % | 1.20 | % | 2.16 | % | 8.34 | % | 15.38 | % | |||||||||||||
Net investment income (loss) | 0.45 | % | 0.73 | % | 0.83 | % | 1.15 | % | 0.91 | % | 0.19 | %^ | |||||||||||||
Portfolio turnover rate | 11 | % | 43 | % | 33 | % | 69 | % | 86 | % | 84 | % |
† | Unaudited. |
* | The inception date for the R6 Shares was November 15, 2016. |
^ | Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the period. The amount of the reimbursement was less than $0.005 per share. There was no impact on the total return of the Portfolio. The impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
230 Semi-Annual Report
LAZARD US EQUITY FOCUS PORTFOLIO
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.37 | $ | 12.03 | $ | 10.23 | $ | 12.43 | $ | 11.63 | $ | 10.97 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.04 | 0.11 | 0.13 | 0.14 | 0.14 | 0.12 | |||||||||||||||||||
Net realized and unrealized gain (loss) | 2.20 | 1.94 | 3.11 | (0.55 | ) | 1.94 | 0.94 | ||||||||||||||||||
Total from investment operations | 2.24 | 2.05 | 3.24 | (0.41 | ) | 2.08 | 1.06 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.10 | ) | (0.23 | ) | (0.29 | ) | (0.21 | ) | (0.10 | ) | ||||||||||||||
Net realized gains | — | (0.61 | ) | (1.21 | ) | (1.50 | ) | (1.07 | ) | (0.30 | ) | ||||||||||||||
Total distributions | — | (0.71 | ) | (1.44 | ) | (1.79 | ) | (1.28 | ) | (0.40 | ) | ||||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 15.61 | $ | 13.37 | $ | 12.03 | $ | 10.23 | $ | 12.43 | $ | 11.63 | |||||||||||||
Total Return (c) | 16.75 | % | 17.29 | % | 31.67 | % | –3.12 | % | 18.17 | % | 9.70 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 37,906 | $ | 31,075 | $ | 32,661 | $ | 60,629 | $ | 72,958 | $ | 72,151 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.70 | % | 0.70 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | |||||||||||||
Gross expenses | 0.92 | % | 1.26 | % | 0.92 | % | 0.92 | % | 0.95 | % | 0.94 | % | |||||||||||||
Net investment income (loss) | 0.62 | % | 0.91 | % | 1.07 | % | 1.10 | % | 1.10 | % | 1.08 | % | |||||||||||||
Portfolio turnover rate | 16 | % | 54 | % | 45 | % | 62 | % | 74 | % | 68 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 231
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.45 | $ | 12.09 | $ | 10.28 | $ | 12.48 | $ | 11.68 | $ | 11.01 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.03 | 0.08 | 0.10 | 0.10 | 0.10 | 0.09 | |||||||||||||||||||
Net realized and unrealized gain (loss) | 2.20 | 1.96 | 3.11 | (0.54 | ) | 1.94 | 0.94 | ||||||||||||||||||
Total from investment operations | 2.23 | 2.04 | 3.21 | (0.44 | ) | 2.04 | 1.03 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.07 | ) | (0.19 | ) | (0.26 | ) | (0.17 | ) | (0.06 | ) | ||||||||||||||
Net realized gains | — | (0.61 | ) | (1.21 | ) | (1.50 | ) | (1.07 | ) | (0.30 | ) | ||||||||||||||
Total distributions | — | (0.68 | ) | (1.40 | ) | (1.76 | ) | (1.24 | ) | (0.36 | ) | ||||||||||||||
Net asset value, end of period | $ | 15.68 | $ | 13.45 | $ | 12.09 | $ | 10.28 | $ | 12.48 | $ | 11.68 | |||||||||||||
Total Return (c) | 16.58 | % | 17.08 | % | 31.25 | % | –3.40 | % | 17.75 | % | 9.46 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1,474 | $ | 1,285 | $ | 1,117 | $ | 881 | $ | 1,013 | $ | 1,376 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.95 | % | 0.95 | % | 1.03 | % | 1.05 | % | 1.05 | % | 1.05 | % | |||||||||||||
Gross expenses | 1.40 | % | 1.79 | % | 2.14 | % | 2.33 | % | 2.30 | % | 2.13 | % | |||||||||||||
Net investment income (loss) | 0.37 | % | 0.67 | % | 0.79 | % | 0.80 | % | 0.79 | % | 0.80 | % | |||||||||||||
Portfolio turnover rate | 16 | % | 54 | % | 45 | % | 62 | % | 74 | % | 68 | % |
The accompanying notes are an integral part of these financial statements.
232 Semi-Annual Report
Selected data for a share of capital stock outstanding | Six Months Ended | Year Ended | |||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
R6 Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.38 | $ | 12.04 | $ | 10.23 | $ | 12.43 | $ | 11.63 | $ | 10.96 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.04 | 0.11 | 0.13 | 0.14 | 0.14 | 0.14 | |||||||||||||||||||
Net realized and unrealized gain (loss) | 2.20 | 1.94 | 3.12 | (0.55 | ) | 1.94 | 0.93 | ||||||||||||||||||
Total from investment operations | 2.24 | 2.05 | 3.25 | (0.41 | ) | 2.08 | 1.07 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.10 | ) | (0.23 | ) | (0.29 | ) | (0.21 | ) | (0.10 | ) | ||||||||||||||
Net realized gains | — | (0.61 | ) | (1.21 | ) | (1.50 | ) | (1.07 | ) | (0.30 | ) | ||||||||||||||
Total distributions | — | (0.71 | ) | (1.44 | ) | (1.79 | ) | (1.28 | ) | (0.40 | ) | ||||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 15.62 | $ | 13.38 | $ | 12.04 | $ | 10.23 | $ | 12.43 | $ | 11.63 | |||||||||||||
Total Return (c) | 16.74 | % | 17.28 | % | 31.76 | % | –3.13 | % | 18.16 | % | 9.81 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 34,567 | $ | 20,747 | $ | 10,609 | $ | 10,056 | $ | 11,394 | $ | 13,297 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.70 | % | 0.70 | % | 0.74 | % | 0.75 | % | 0.75 | % | 0.74 | % | |||||||||||||
Gross expenses | 0.92 | % | 1.27 | % | 1.00 | % | 1.01 | % | 1.05 | % | 1.02 | % | |||||||||||||
Net investment income (loss) | 0.58 | % | 0.91 | % | 1.09 | % | 1.10 | % | 1.12 | % | 1.27 | % | |||||||||||||
Portfolio turnover rate | 16 | % | 54 | % | 45 | % | 62 | % | 74 | % | 68 | % |
† | Unaudited. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 233
LAZARD US SMALL-MID CAP EQUITY PORTFOLIO
Selected data for a | ||||||||||||||||||||||||
share of capital stock | Six Months | |||||||||||||||||||||||
outstanding | Ended | Year Ended | ||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 14.42 | $ | 13.64 | $ | 10.83 | $ | 14.65 | $ | 14.50 | $ | 12.86 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | (0.01 | ) | 0.04 | 0.06 | 0.05 | 0.06 | 0.11 | ^ | ||||||||||||||||
Net realized and unrealized gain (loss) | 2.47 | 0.82 | 3.19 | (2.00 | ) | 1.95 | 1.96 | |||||||||||||||||
Total from investment operations | 2.46 | 0.86 | 3.25 | (1.95 | ) | 2.01 | 2.07 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.02 | ) | (0.03 | ) | (0.04 | ) | (0.09 | ) | (0.09 | ) | |||||||||||||
Net realized gains | — | (0.06 | ) | (0.41 | ) | (1.83 | ) | (1.77 | ) | (0.34 | ) | |||||||||||||
Total distributions | — | (0.08 | ) | (0.44 | ) | (1.87 | ) | (1.86 | ) | (0.43 | ) | |||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | |||||||||||||||||
Net asset value, end of period | $ | 16.88 | $ | 14.42 | $ | 13.64 | $ | 10.83 | $ | 14.65 | $ | 14.50 | ||||||||||||
Total Return (c) | 17.06 | % | 6.44 | % | 30.00 | % | –13.27 | % | 14.12 | % | 16.28 | %^ | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 103,573 | $ | 91,984 | $ | 108,112 | $ | 113,677 | $ | 176,975 | $ | 189,593 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 0.96 | % | 0.98 | % | 0.92 | % | 0.87 | % | 0.87 | % | 0.86 | %^ | ||||||||||||
Gross expenses | 0.96 | % | 0.98 | % | 0.92 | % | 0.87 | % | 0.87 | % | 0.90 | % | ||||||||||||
Net investment income (loss) | (0.08 | )% | 0.31 | % | 0.46 | % | 0.35 | % | 0.39 | % | 0.84 | %^ | ||||||||||||
Portfolio turnover rate | 41 | % | 80 | % | 90 | % | 81 | % | 79 | % | 91 | % |
The accompanying notes are an integral part of these financial statements.
234 Semi-Annual Report
Selected data for a | ||||||||||||||||||||||||
share of capital stock | Six Months | |||||||||||||||||||||||
outstanding | Ended | Year Ended | ||||||||||||||||||||||
throughout each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Open Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 13.25 | $ | 12.58 | $ | 10.03 | $ | 13.72 | $ | 13.68 | $ | 12.16 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | (0.03 | ) | — | (b) | 0.01 | 0.01 | 0.01 | 0.06 | ^ | |||||||||||||||
Net realized and unrealized gain (loss) | 2.27 | 0.75 | 2.95 | (1.87 | ) | 1.84 | 1.85 | |||||||||||||||||
Total from investment operations | 2.24 | 0.75 | 2.96 | (1.86 | ) | 1.85 | 1.91 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.02 | ) | — | — | (b) | (0.04 | ) | (0.05 | ) | ||||||||||||||
Net realized gains | — | (0.06 | ) | (0.41 | ) | (1.83 | ) | (1.77 | ) | (0.34 | ) | |||||||||||||
Total distributions | — | (0.08 | ) | (0.41 | ) | (1.83 | ) | (1.81 | ) | (0.39 | ) | |||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | |||||||||||||||||
Net asset value, end of period | $ | 15.49 | $ | 13.25 | $ | 12.58 | $ | 10.03 | $ | 13.72 | $ | 13.68 | ||||||||||||
Total Return (c) | 16.91 | % | 6.10 | % | 29.51 | % | –13.49 | % | 13.82 | % | 15.92 | %^ | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 12,222 | $ | 10,965 | $ | 14,643 | $ | 13,726 | $ | 25,973 | $ | 30,332 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 1.25 | % | 1.28 | % | 1.25 | % | 1.18 | % | 1.17 | % | 1.16 | %^ | ||||||||||||
Gross expenses | 1.25 | % | 1.28 | % | 1.25 | % | 1.18 | % | 1.17 | % | 1.20 | % | ||||||||||||
Net investment income (loss) | (0.37 | )% | — | %(e) | 0.11 | % | 0.04 | % | 0.09 | % | 0.51 | %^ | ||||||||||||
Portfolio turnover rate | 41 | % | 80 | % | 90 | % | 81 | % | 79 | % | 91 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 235
Selected data for a | |||||||||
share of capital stock | Six Months | For the Period | |||||||
outstanding | Ended | 1/8/20* | |||||||
throughout each period | 6/30/21† | to 12/31/20 | |||||||
R6 Shares | |||||||||
Net asset value, beginning of period | $ | 14.42 | $ | 13.62 | |||||
Income (Loss) from investment operations: | |||||||||
Net investment income (loss) (a) | (0.01 | ) | 0.04 | ||||||
Net realized and unrealized gain (loss) | 2.47 | 0.84 | |||||||
Total from investment operations | 2.46 | 0.88 | |||||||
Less distributions from: | |||||||||
Net investment income | — | (0.02 | ) | ||||||
Net realized gains | — | (0.06 | ) | ||||||
Total distributions | — | (0.08 | ) | ||||||
Net asset value, end of period | $ | 16.88 | $ | 14.42 | |||||
Total Return (c) | 17.06 | % | 6.59 | % | |||||
Ratios and Supplemental Data: | |||||||||
Net assets, end of period (in thousands) | $ | 817 | $ | 684 | |||||
Ratios to average net assets (d): | |||||||||
Net expenses | 0.96 | % | 0.96 | % | |||||
Gross expenses | 3.99 | % | 1.65 | % | |||||
Net investment income (loss) | (0.07 | )% | 0.34 | % | |||||
Portfolio turnover rate | 41 | % | 80 | % |
† | Unaudited |
* | The inception date for the R6 shares was January 8, 2020. |
^ | Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the period. The impact on the net investment income per share amount was $0.01 per share. There was a 0.08% impact on the total return of the Institutional Shares class of the Portfolio. There was a 0.04% impact on the net expenses and net investment income (loss) ratios of the Portfolio. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year except for non-recurring expenses. |
(e) | Amount is less than 0.005% |
The accompanying notes are an integral part of these financial statements.
236 Semi-Annual Report
LAZARD US SUSTAINABLE EQUITY PORTFOLIO
Selected data for a | |||||||||
share of capital stock | Six Months | For the Period | |||||||
outstanding | Ended | 6/30/20* | |||||||
throughout each period | 6/30/21† | to 12/31/20 | |||||||
Institutional Shares | |||||||||
Net asset value, beginning of period | $ | 12.20 | $ | 10.00 | |||||
Income (Loss) from investment operations: | |||||||||
Net investment income (loss) (a) | 0.03 | 0.04 | |||||||
Net realized and unrealized gain (loss) | 1.76 | 2.23 | |||||||
Total from investment operations | 1.79 | 2.27 | |||||||
Less distributions from: | |||||||||
Net investment income | — | (0.04 | ) | ||||||
Net realized gains | — | (0.03 | ) | ||||||
Total distributions | — | (0.07 | ) | ||||||
Net asset value, end of period | $ | 13.99 | $ | 12.20 | |||||
Total Return (b) | 14.67 | % | 22.69 | % | |||||
Ratios and Supplemental Data: | |||||||||
Net assets, end of period (in thousands) | $ | 13,182 | $ | 11,490 | |||||
Ratios to average net assets (c): | |||||||||
Net expenses | 0.75 | % | 0.75 | % | |||||
Gross expenses | 2.68 | % | 2.49 | % | |||||
Net investment income (loss) | 0.51 | % | 0.65 | % | |||||
Portfolio turnover rate | 6 | % | 5 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 237
Selected data for a | |||||||||
share of capital stock | Six Months | For the Period | |||||||
outstanding | Ended | 6/30/20* | |||||||
throughout each period | 6/30/21† | to 12/31/20 | |||||||
Open Shares | |||||||||
Net asset value, beginning of period | $ | 12.21 | $ | 10.00 | |||||
Income (Loss) from investment operations: | |||||||||
Net investment income (loss) (a) | 0.02 | 0.02 | |||||||
Net realized and unrealized gain (loss) | 1.76 | 2.23 | |||||||
Total from investment operations | 1.78 | 2.25 | |||||||
Less distributions from: | |||||||||
Net investment income | — | (0.01 | ) | ||||||
Net realized gains | — | (0.03 | ) | ||||||
Total distributions | — | (0.04 | ) | ||||||
Net asset value, end of period | $ | 13.99 | $ | 12.21 | |||||
Total Return (b) | 14.58 | % | 22.48 | % | |||||
Ratios and Supplemental Data: | |||||||||
Net assets, end of period (in thousands) | $ | 413 | $ | 128 | |||||
Ratios to average net assets (c): | |||||||||
Net expenses | 1.00 | % | 1.00 | % | |||||
Gross expenses | 3.10 | % | 5.31 | % | |||||
Net investment income (loss) | 0.25 | % | 0.43 | % | |||||
Portfolio turnover rate | 6 | % | 5 | % |
† | Unaudited |
* | The Portfolio commenced operations on June 30, 2020. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(c) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
238 Semi-Annual Report
The Lazard Funds, Inc. Notes to Financial Statements
June 30, 2021 (unaudited)
1. Organization
The Lazard Funds, Inc. was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of June 30, 2021, the Fund was comprised of thirty no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of the Lazard Developing Markets Equity Portfolio (“Developing Markets Equity”), Lazard Emerging Markets Core Equity Portfolio (“Emerging Markets Core Equity”), Lazard Emerging Markets Equity Advantage Portfolio (“Emerging Markets Equity Advantage”), Lazard Emerging Markets Equity Portfolio (“Emerging Markets Equity”), Lazard Emerging Markets Strategic Equity Portfolio (“Emerging Markets Strategic Equity”, which was formerly the Lazard Emerging Markets Equity Blend Portfolio), Lazard Equity Franchise Portfolio (“Equity Franchise”), Lazard Global Equity Select Portfolio (“Global Equity Select”), Lazard Global Listed Infrastructure Portfolio (“Global Listed Infrastructure”), Lazard Global Strategic Equity Portfolio (“Global Strategic Equity”), Lazard International Equity Advantage Portfolio (“International Equity Advantage”), Lazard International Equity Concentrated Portfolio (“International Equity Concentrated”), Lazard International Equity Portfolio(“International Equity”), Lazard International Equity Select Portfolio (“International Equity Select”), Lazard International Equity Value Portfolio (“International Equity Value”), Lazard International Small Cap Equity Portfolio(“International Small Cap Equity”), Lazard International Strategic Equity Portfolio (“International Strategic Equity”), Lazard International Quality Growth Portfolio (“International Quality Growth”), Lazard Managed Equity Volatility Portfolio (“Managed Equity Volatility”), Lazard US Equity Concentrated Portfolio (“US Equity Concentrated”), Lazard US Equity Focus Portfolio (“US Equity Focus”), Lazard US Small-Mid Cap Equity Portfolio (“US Small-Mid Cap Equity”), and Lazard US Sustainable Equity Portfolio (“US Sustainable Equity” which commenced operations on June 30, 2020) Portfolios. The financial statements of the other eight Portfolios are presented separately.
The Portfolios, other than Equity Franchise, International Equity Concentrated, International Equity Value, US Equity Concentrated
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and US Equity Focus, are operated as “diversified” funds, as defined in the 1940 Act.
Each Portfolio currently offers Institutional Shares and Open Shares, and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum investment requirements; eligibility requirements for R6 Shares; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Portfolios’ prospectus).
2. Significant Accounting Policies
The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in accordance with Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:
(a) Valuation of Investments—Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants, are valued at the last reported sales price (for US listed equity securities) or the closing price (for non-US listed equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the NASDAQ National Market System (“NASDAQ”), the NASDAQ Official Closing Price. If there is no available closing price for a non-US listed equity security, the last reported sales price is used. If there are no reported sales of a security on the valuation date, the security is valued at the most recent quoted bid price on such date reported by such principal exchange or market. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s net asset value (“NAV”) per share.
Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trading on certain non-US securities exchanges or markets, such as those in Europe and Asia, ordinarily may be completed before the close of business on each business day in New York (i.e., a day on which the New York Stock Exchange (the
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“NYSE”) is open). In addition, securities trading in a particular non-US country or countries, may not take place on all business days in New York and on which the NAV of a Portfolio is calculated.
If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when a Portfolio’s NAV is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Fund’s Board of Directors (the “Board”). The fair value of non-US equity securities may be determined with the assistance of an independent pricing service using correlations between the movement of prices of such securities and indices of US securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. Certain non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of the Portfolio’s assets on days when Portfolio shareholders may not be able to buy or sell Portfolio shares.
The Valuation Committee of the Investment Manager, which is subject to the oversight of the Board, may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio management team also will be considered.
The effect of using fair value pricing is that the NAV of a Portfolio will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.
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(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income is recorded on the ex-dividend date except for certain dividends from non-US securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by a Portfolio. Interest income, if any, is accrued daily.
A Portfolio may be subject to taxes imposed by non-US countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized and/or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income earned or capital gains (realized and/or unrealized) from the applicable portfolio securities.
As a result of several court cases in certain countries across the European Union, some Portfolios have filed tax reclaims for previously withheld taxes on dividends earned in certain European Union countries. These filings are subject to various administrative proceedings by the local jurisdictions’ tax authorities within the European Union, as well as a number of related judicial proceedings. Uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these claims, and the potential timing of payment, and accordingly no amounts are reflected in the financial statements. Such amounts, if and when recorded, could result in an increase in a Portfolio’s NAV per share.
(c) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Fund are maintained in US dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.
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The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments.
A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Daily fluctuations in the value of forward currency contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, the Portfolio records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed. Net realized gain (loss) on foreign currency transactions and forward currency contracts represent net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency translations reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.
During the period ended June 30, 2021, the Global Listed Infrastructure Portfolio traded in forward currency contracts.
(d) Federal Income Taxes—The Fund’s policy is for each Portfolio to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.
At December 31, 2020, the following Portfolios had unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains. with no expiration date as follows:
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Portfolio | Short-Term | Long-Term | ||||||
Developing Markets Equity | $ | 52,510,008 | $ | 61,511,199 | ||||
Emerging Markets Core Equity | 6,634,677 | 19,272,369 | ||||||
Emerging Markets Equity | 213,155,187 | 1,246,135,039 | ||||||
Emerging Markets Strategic Equity | 11,817,368 | 42,655,514 | ||||||
International Equity Advantage | 142,059 | 132,843 | ||||||
International Equity Concentrated | 9,174,498 | 2,079,978 | ||||||
International Equity | 59,029,777 | 3,993,533 | ||||||
International Equity Select | 1,599,031 | 1,956,530 | ||||||
International Equity Value | 900,479 | — | ||||||
International Small Cap Equity | 1,090,853 | — | ||||||
International Strategic Equity | 68,654,545 | — | ||||||
Managed Equity Volatility | 1,476,490 | — | ||||||
US Small-Mid Cap Equity | 4,135,115 | — |
During the year ended December 31, 2020, the following Portfolios utilized realized capital loss carryovers from previous years as follows:
Portfolio | Amounts | |||
Emerging Markets Equity Advantage | $ | 184,175 | ||
Global Equity Select | 1,427,271 | |||
Global Listed Infrastructure | 9,760,289 | |||
International Equity Value Portfolio | 3,029 | |||
International Small Cap Equity Portfolio | 431,493 | |||
US Equity Concentrated Portfolio | 1,193,025 |
Under current tax law, post-October capital losses or certain late-year ordinary losses, as defined by the Code, within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the tax year ended December 31, 2020, the following Portfolios elected to defer such losses as follows:
Portfolio | Post-October Capital Loss Deferral | Late-Year Ordinary Loss Deferral | ||||||
Global Listed Infrastructure | $ | — | $ | 186,822,571 | ||||
International Equity Advantage | — | 602 | ||||||
International Quality Growth | — | 105 |
For federal income tax purposes, the aggregate cost, aggregate gross unrealized appreciation, aggregate gross unrealized depreci-
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ation and the net unrealized appreciation (depreciation) were as follows:
Portfolio | Aggregate Cost | Aggregate Gross Unrealized Appreciation | Aggregate Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Developing Markets Equity | $ | 158,652,960 | $ | 65,544,993 | $ | 5,089,987 | $ | 60,455,006 | ||||||||
Emerging Markets Core Equity | 123,395,974 | 75,085,612 | 4,558,579 | 70,527,033 | ||||||||||||
Emerging Markets Equity Advantage | 67,433,170 | 8,123,255 | 1,679,105 | 6,444,150 | ||||||||||||
Emerging Markets Equity | 3,277,672,599 | 1,094,207,800 | 121,348,818 | 972,858,982 | ||||||||||||
Emerging Markets Strategic Equity | 68,635,957 | 12,651,983 | 3,545,827 | 9,106,156 | ||||||||||||
Equity Franchise | 84,155,364 | 19,262,322 | 40,326 | 19,221,996 | ||||||||||||
Global Equity Select | 73,594,630 | 35,189,430 | 424,766 | 34,764,664 | ||||||||||||
Global Listed Infrastructure | 7,666,335,515 | 1,204,810,642 | 458,866,547 | 745,944,095 | ||||||||||||
Global Strategic Equity | 15,795,329 | 1,684,297 | 170,914 | 1,513,383 | ||||||||||||
International Equity Advantage | 2,499,423 | 475,574 | 40,505 | 435,069 | ||||||||||||
International Equity Concentrated | 2,049,821 | 349,555 | 39,534 | 310,021 | ||||||||||||
International Equity | 2,240,555,917 | 600,489,758 | 36,550,907 | 563,938,851 | ||||||||||||
International Equity Select | 70,190,391 | 18,911,206 | 1,860,789 | 17,050,417 | ||||||||||||
International Equity Value | 2,816,104 | 469,751 | 58,618 | 411,133 | ||||||||||||
International Quality Growth | 24,747,417 | 4,753,569 | 381,796 | 4,371,773 | ||||||||||||
International Small Cap Equity | 30,384,251 | 10,514,466 | 394,558 | 10,119,908 | ||||||||||||
International Strategic Equity | 4,877,578,633 | 1,692,444,997 | 53,794,513 | 1,638,650,484 | ||||||||||||
Managed Equity Volatility | 25,259,017 | 2,698,224 | 467,472 | 2,230,752 | ||||||||||||
US Equity Concentrated | 1,263,050,403 | 700,503,577 | 1,186,571 | 699,317,006 | ||||||||||||
US Equity Focus | 49,503,675 | 24,563,543 | — | 24,563,543 | ||||||||||||
US Small-Mid Cap Equity | 84,807,973 | 29,503,157 | 525,732 | 28,977,425 | ||||||||||||
US Sustainable Equity | 10,316,570 | 3,279,342 | 10,913 | 3,268,429 |
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Management has analyzed the Portfolios’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. Each Portfolio files a US federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
(e) Dividends and Distributions—For each Portfolio, income dividends are normally declared each business day and paid monthly during any particular year, except that the Global Listed Infrastructure Portfolio’s dividends from net investment income (if any), will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders, but may be distributed more frequently. Differences in per share distributions, by class, are generally due to differences in class specific expenses.
The US Equity Focus, US Equity Concentrated, Global Equity Select, and Equity Franchise Portfolio, intend, on their 2020 tax returns, to treat as a distribution of investment company taxable income and net capital gain the portion of redemption proceeds paid to redeeming shareholders that represents the redeeming shareholders’ portion of the Portfolios’ undistributed investment company taxable income and net capital gain. This practice, which involves the use of equalization accounting, will have the effect of reducing the amount of income and gains that the Portfolios would otherwise be required to distribute as dividends to shareholders in order for the Portfolios to avoid federal income and excise taxes. This practice reduces the amount of distributions required to be made to non-redeeming shareholders and defers the recognition of taxable income by such shareholders. However, since the amount of any undistributed income will be reflected in the value of the Portfolios’ shares, the total return on a shareholder’s investment is not affected by the Portfolios’ use of equalization.
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REIT distributions received by a Portfolio are generally comprised of ordinary income, long-term capital gains and a return of REIT capital. However, as the actual character of such distributions received are not known until after the calendar year end, distributions made by a Portfolio during the year are subject to re-characterization that may result in some portion of the distributions being reclassified as a return of capital distribution to Portfolio shareholders.
Income and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency transactions, wash sales, passive foreign investment companies, expiring capital loss carryovers, certain expenses, foreign capital gains taxes, distributions in excess of current earnings, equalization, non-REIT non-taxable dividend adjustment to income, distributions redesignations, adjustments in relation to merger, return of capital distributions, receivable from tax reclaim and distributions from real estate investment trusts and partnerships. The book/tax differences relating to shareholder distributions may result in reclassifications among certain capital accounts.
(f) Offering and Organizational Costs—Costs incurred by the Fund in connection with the offering of shares of a new Portfolio or share class of a Portfolio are deferred and amortized on a straight line basis over a twelve-month period from the date of commencement of operations of the Portfolio or share class. Organizational costs are expensed as incurred.
(g) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., and Lazard Global Total Return and Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Open Shares. Each Portfolio’s income, expenses
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(other than class specific expenses) and realized and unrealized gains and losses are allocated proportionally each day between the classes based upon the relative net assets of each class.
(h) Redemption Fee—Until August 15, 2016, the Portfolios imposed a 1.00% redemption fee (short-term trading fee) on Portfolio shares redeemed less than 30 days after such shares were acquired. The fees were retained by the Portfolios and are included as paid in capital on the Statements of Assets and Liabilities. As of August 15, 2016, redemption fees no longer apply to transactions in Portfolio shares.
(i) Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates.
(j) Net Asset Value—The NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. The NAV per share of a class is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.
3. Investment Management, Administration, Custody, Distribution and Transfer Agency Agreements
The Fund, on behalf of the Portfolios, has entered into a management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager manages the investment operations of each Portfolio and the assets of each Portfolio including the purchase, retention and disposition thereof, in accordance with the Portfolio’s investment objectives, policies, and restrictions, and provides the
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Portfolios with administrative, operational and compliance assistance services. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:
Portfolio | Annual Rate | |||
Developing Markets Equity | 1.00 | % | ||
Emerging Markets Core Equity | 1.00 | |||
Emerging Markets Equity Advantage | 0.75 | (a) | ||
Emerging Markets Equity | 1.00 | |||
Emerging Markets Strategic Equity | 1.00 | |||
Equity Franchise | 0.80 | |||
Global Equity Select | 0.65 | |||
Global Listed Infrastructure | 0.90 | |||
Global Strategic Equity | 0.75 | |||
International Equity Advantage | 0.65 | |||
International Equity Concentrated | 0.80 | |||
International Equity | 0.75 | |||
International Equity Select | 0.65 | |||
International Equity Value | 0.80 | |||
International Quality Growth | 0.75 | |||
International Small Cap Equity | 0.75 | |||
International Strategic Equity | 0.75 | |||
Managed Equity Volatility | 0.60 | |||
US Equity Concentrated | 0.70 | |||
US Equity Focus | 0.55 | |||
US Small-Mid Cap Equity | 0.75 | |||
US Sustainable Equity | 0.60 |
(a) | From January 1, 2021 to March 31, 2021, the annual rate was 0.85%. |
The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse a Portfolio until April 30, 2022 (or such other date as indicated below) if the aggregate direct expenses of the Portfolio(s), exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” (as defined in Form N-1A) fees and expenses related to filing foreign tax reclaims and extraordinary expenses on behalf of the Portfolio, exceed the applicable percentages of the value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name in the table below. The Fund, on behalf of the Portfolio, may deduct
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from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expenses.
Portfolio | Institutional Shares | Open Shares | R6 Shares | |||||||||
Developing Markets Equity | 1.15 | % | 1.40 | % | N/A | % | ||||||
Emerging Markets Core Equity | 1.25 | 1.50 | 1.20 | |||||||||
Emerging Markets Equity Advantage | 0.90 | 1.15 | N/A | (a) | ||||||||
Emerging Markets Equity | 1.20 | 1.45 | N/A | |||||||||
Emerging Markets Strategic Equity | 1.15 | 1.40 | 1.10 | (b) | ||||||||
Equity Franchise | 0.95 | 1.20 | N/A | |||||||||
Global Equity Select | 0.90 | 1.15 | N/A | |||||||||
Global Listed Infrastructure | 1.20 | 1.45 | N/A | (c) | ||||||||
Global Strategic Equity | 0.95 | 1.20 | N/A | |||||||||
International Equity Advantage | 0.90 | 1.15 | N/A | |||||||||
International Equity Concentrated | 0.90 | 1.15 | N/A | |||||||||
International Equity | 0.85 | 1.10 | 0.80 | |||||||||
International Equity Select | 0.90 | 1.15 | N/A | (d) | ||||||||
International Equity Value | 0.95 | 1.20 | N/A | |||||||||
International Quality Growth | 0.85 | 1.10 | (c) | N/A | ||||||||
International Small Cap Equity | 1.13 | 1.38 | N/A | |||||||||
International Strategic Equity | 1.05 | 1.30 | 1.00 | |||||||||
Managed Equity Volatility | 0.75 | 1.00 | N/A | |||||||||
US Equity Concentrated | 0.90 | 1.15 | 0.85 | (e) | ||||||||
US Equity Focus | 0.70 | 0.95 | 0.70 | |||||||||
US Small-Mid Cap Equity | 1.15 | 1.40 | 1.10 | |||||||||
US Sustainable Equity | 0.75 | 1.00 | N/A | (f) |
(a) | From January 1, 2021 to March 31, 2021, annual rates were 1.10% and 1.35% respectively. |
(b) | From January 1, 2021 to June 23, 2021, annual rates were 1.20%, 1.45% and 1.15% respectively. |
(c) | This agreement will continue in effect until April 30, 2031. |
(d) | This agreement will continue in effect until April 30, 2022 and from April 30, 2022 to April 30, 2031 at levels of 1.15%, 1.40% and 1.10% respectively. |
(e) | This agreement will continue in effect until April 30, 2022 and from April 30, 2022 to April 30, 2031 at levels of 1.10%, 1.35% and 1.05% respectively. |
(f) | This agreement will continue in effect until June 30, 2022. |
In addition, until April 30, 2022, to the extent the “Total Annual Fund Operating Expenses” (as used in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Fund Operating Expenses of the Portfolio’s Institutional Shares (in each case, not including management fees, custodial fees or other expenses related to the management of the Portfolio’s assets), the Invest-
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ment Manager will bear the expenses of the R6 Shares in the amount of such excess.
During the period ended June 30, 2021, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:
Institutional Shares | Open Shares | ||||||||||||||||
Management | Expenses | Management | Expenses | ||||||||||||||
Portfolio | Fees Waived | Reimbursed | Fees Waived | Reimbursed | |||||||||||||
Developing Markets Equity | $ | 4,579 | $ | — | $ | 2,964 | $ | — | |||||||||
Emerging Markets Core Equity | — | — | 456 | — | |||||||||||||
Emerging Markets Equity Advantage | 54,580 | — | 4,645 | — | |||||||||||||
Emerging Markets Strategic Equity | 77,740 | — | 6,344 | — | |||||||||||||
Equity Franchise | 17,666 | — | 540 | 1,737 | |||||||||||||
Global Equity Select | — | — | 1,927 | — | |||||||||||||
Global Strategic Equity | 37,640 | 37,190 | 730 | 3,520 | |||||||||||||
International Equity Advantage | 8,553 | 65,023 | 411 | 5,243 | |||||||||||||
International Equity Concentrated | 33,194 | 45,990 | 1,540 | 6,655 | |||||||||||||
International Equity Select | — | — | 2,108 | — | |||||||||||||
International Equity Value | 11,937 | 52,339 | 177 | 3,006 | |||||||||||||
International Quality Growth | 68,446 | — | 1,216 | 1,665 | |||||||||||||
International Small Cap Equity | 18,391 | — | 10,084 | — | |||||||||||||
Managed Equity Volatility | 69,910 | — | 232 | 2,119 | |||||||||||||
US Equity Focus | 36,734 | — | 3,049 | — | |||||||||||||
US Sustainable Equity | 36,644 | 81,387 | 948 | 2,360 |
R6 Shares | |||||||||
Portfolio | Management Fees Waived | Expenses Reimbursed | |||||||
Emerging Markets Core Equity | $ | 1,502 | $ | — | |||||
Emerging Markets Equity | 1,220 | — | |||||||
International Equity | 12,460 | — | |||||||
International Strategic Equity | 2,542 | — | |||||||
US Equity Concentrated | 1,516 | — | |||||||
US Equity Focus | 29,894 | — | |||||||
US Small-Mid Cap Equity | 2,883 | 8,761 |
The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.
State Street serves as the Fund’s custodian and provides the Fund with certain administrative services.
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In December 2015, State Street announced that it had identified inconsistencies in the way in which clients were invoiced for custody out-of-pocket expenses from 1998 until 2015. The difference between what was charged and what should have been charged, plus interest, was recorded as a reimbursement when determined in 2016. Pursuant to the expense limitations described above, certain Portfolios experienced management fee waivers during the year ended December 31, 2016. Accordingly, the reimbursement of out-of-pocket expenses resulted in the reduction in the waiver of management fees for certain Portfolios for the year ended December 31, 2016.
The Fund has a distribution agreement with Lazard Asset Management Securities LLC (the “Distributor”), a wholly-owned subsidiary of the Investment Manager, to serve as the distributor for shares of each Portfolio. The Distributor bears, amongst other things, the cost of preparing and distributing materials used by the Distributor in connection with its offering Portfolio shares and other advertising and promotional expenses.
Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net assets of its Open Shares, for certain distribution activities and providing services to holders of the Portfolio’s Open shares. The Distributor may make payments to third parties such as financial institutions, securities dealers and other industry professionals in respect of these services.
DST is the Fund’s transfer agent and dividend disbursing agent.
4. Directors’ Compensation
Certain Directors of the Fund are officers of the Investment Manager. For 2021, the annual compensation for each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by all of the funds in the Lazard Fund Complex is: (1) an annual retainer of $237,000, (2) an additional annual fee of $33,700 to the lead Independent Director, and (3) an additional annual fee of $23,500 to the Audit Committee Chair. The Independent Directors (an “Independent Director” is a Director who is not an
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“interested person” (as defined in the 1940 Act) of the Fund) also may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors are also reimbursed for travel and other out-of-pocket expenses for attending Board and Committee meetings. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees and expenses are allocated among the active Portfolios in the Lazard Fund Complex at a rate of $5,000 per active portfolio with the remainder allocated among the active portfolios on the basis of relative net assets. The Statements of Operations show the Independent Directors’ fees and expenses paid by each Portfolio.
5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments) for the period ended June 30, 2021 were as follows:
Portfolio | Purchases | Sales | ||||||
Developing Markets Equity | $ | 45,586,730 | $ | 32,249,499 | ||||
Emerging Markets Core Equity | 28,362,905 | 53,462,892 | ||||||
Emerging Markets Equity Advantage | 65,747,461 | 25,777,875 | ||||||
Emerging Markets Equity | 799,091,494 | 1,334,360,363 | ||||||
Emerging Markets Strategic Equity | 58,795,370 | 61,450,862 | ||||||
Equity Franchise | 33,579,001 | 33,847,760 | ||||||
Global Equity Select | 15,045,817 | 11,919,156 | ||||||
Global Listed Infrastructure | 1,203,684,768 | 646,511,136 | ||||||
Global Strategic Equity | 14,616,060 | 2,582,904 | ||||||
International Equity Advantage | 1,455,348 | 1,418,174 | ||||||
International Equity Concentrated | 3,193,093 | 15,760,183 | ||||||
International Equity | 570,621,574 | 982,873,214 | ||||||
International Equity Select | 16,745,549 | 26,580,708 | ||||||
International Equity Value | 1,194,025 | 910,433 | ||||||
International Quality Growth | 17,325,641 | 1,428,216 | ||||||
International Small Cap Equity | 8,832,485 | 14,539,769 | ||||||
International Strategic Equity | 980,855,571 | 806,493,590 | ||||||
Managed Equity Volatility | 14,910,648 | 16,177,292 | ||||||
US Equity Concentrated | 210,261,315 | 453,814,314 | ||||||
US Equity Focus | 20,345,110 | 9,878,128 | ||||||
US Small-Mid Cap Equity | 44,684,316 | 50,449,393 | ||||||
US Sustainable Equity | 997,878 | 721,628 |
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For the period ended June 30, 2021, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.
At June 30, 2021, the Investment Manager owned 92.14%, 82.51%, 70.23% and 51.74% of the outstanding shares of the International Equity Advantage, International Equity Value, International Quality Growth and US Sustainable Equity Portfolios, respectively.
Holdings of 5% Voting Securities of Portfolio Companies
The 1940 Act defines “affiliated persons” to include a portfolio company in which a Portfolio owns 5% or more of the outstanding voting securities. Investments in “affiliated persons” for the Global Listed Infrastructure Portfolio for the period ended June 30, 2021 were as follows:
Value at | Purchase | Sales | Realized | ||||||||||||||
Issue | December 31, 2020 | cost | proceeds | gain (loss) | |||||||||||||
Global Listed Infrastructure | |||||||||||||||||
Atlas Arteria Ltd | $ | 245,363,263 | $ | — | $ | — | $ | — | |||||||||
Pennon Group Plc | 279,091,668 | — | — | ||||||||||||||
SES SA | 194,564,135 | — | — | ||||||||||||||
Total Securities | $ | 719,019,066 | $ | — | $ | — | $ | — |
Change in unrealized | Shares at | Values at | |||||||||||||||
appreciation | Dividend | June 30, | June 30, | ||||||||||||||
Issue | (depreciation) | income | 2021 | 2021 | |||||||||||||
Atlas Arteria Ltd | $ | (11,668,946 | ) | $ | 4,836,503 | 48,907,421 | $ | 233,694,317 | |||||||||
Pennon Group Plc | 57,632,907 | 1,990,935 | 21,423,608 | 336,724,575 | |||||||||||||
SES SA | (37,347,021 | ) | 8,421,914 | 20,569,089 | 157,217,114 | ||||||||||||
Total Securities | $ | 8,616,940 | $ | 15,249,352 | 90,900,118 | $ | 727,636,006 |
6. Line of Credit
The Fund has a $100 million committed line of credit pursuant to an Amended and Restated Loan Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on
254 Semi-Annual Report
borrowings is payable at 1.00% plus the “Applicable Rate,” which is the higher of (a) the Federal Funds Rate plus 10 basis points and (b) the Overnight Bank Funding Rate (OBFR) plus 10 basis points, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the period ended June 30, 2021, the following Portfolios had borrowings under the Agreement as follows:
Weighted | Number | |||||||||||||||
Average | Maximum | Average | of Days | |||||||||||||
Daily Loan | Daily Loan | Interest | Borrowings | |||||||||||||
Portfolio | Balance* | Outstanding | Rate | were Outstanding | ||||||||||||
Emerging Markets Core Equity | $ | 1,550,588 | $ | 8,300,000 | 1.19 | % | 17 | |||||||||
Emerging Markets Equity Advantage | 1,148,415 | 3,300,000 | 1.19 | 41 | ||||||||||||
Emerging Markets Equity | 5,165,000 | 6,125,000 | 1.19 | 2 | ||||||||||||
Emerging Markets Strategic Equity | 3,863,333 | 10,340,000 | 1.20 | 3 | ||||||||||||
Equity Franchise | 301,000 | 301,000 | 1.17 | 1 | ||||||||||||
Global Strategic Equity | 730,000 | 730,000 | 1.19 | 1 | ||||||||||||
International Equity Concentrated | 237,778 | 780,000 | 1.19 | 18 | ||||||||||||
International Equity | 16,930,000 | 16,930,000 | 1.20 | 4 | ||||||||||||
International Equity Select | 1,736,667 | 4,510,000 | 1.20 | 3 | ||||||||||||
International Quality Growth | 115,000 | 115,000 | 1.20 | 1 | ||||||||||||
International Small Cap Equity | 275,833 | 780,000 | 1.20 | 6 | ||||||||||||
Managed Equity Volatility | 305,000 | 305,000 | 1.20 | 4 | ||||||||||||
US Equity Concentrated | 12,765,000 | 23,190,000 | 1.20 | 2 | ||||||||||||
US Equity Focus | 265,000 | 265,000 | 1.20 | 1 |
* | For days borrowings were outstanding. |
Management believes that the fair value of the liabilities under the Agreement is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with the Applicable rate. A Portfolio’s outstanding balance under the Agreement, if any, would be categorized as Level 2.
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7. Investment Risks
Not all risks described below apply to all Portfolios, or may not apply to the same degree for one or more Portfolios compared to one or more other Portfolios. In addition, not all risks applicable to an investment in a Portfolio are described below. Please see the current summary prospectus for the relevant Portfolio(s) or a current Portfolio prospectus for further information regarding a Portfolio’s investment strategy and related risks.
(a) Market Risk—A Portfolio may incur losses due to declines in one or more markets in which it invests. These declines may be the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s). To the extent that such developments impact specific industries, market sectors, countries or geographic regions, a Portfolio’s investments in such industries, market sectors, countries and/or geographic regions can be expected to be particularly affected, especially if such investments are a significant portion of its investment portfolio. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect a Portfolio. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers worldwide. As a result, local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions or other events could have a significant negative impact on global economic and market conditions. The coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses taken by many governments or voluntarily imposed by private parties, including closing borders, restricting travel and imposing prolonged quarantines or similar restrictions, as well as the closure of, or operational changes to, many retail and other businesses, has had negative impacts, and in many cases severe negative impacts, on markets worldwide. It is not known how long such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may be expected to impact a Portfolio and its investments.
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(b) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity.
(c) Emerging Market Risk—Emerging market countries generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile and less liquid than more developed markets. These market conditions may continue or worsen. Investments in these countries may be subject to political, economic, legal, market and currency risks. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.
(d) Foreign Currency Risk—Investments denominated in currencies other than US dollars may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. A Portfolio’s investments denominated in such currencies (particularly currencies of emerging markets countries), as well as any investments in currencies themselves, could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of currencies. Irrespective of any foreign currency exposure hedging, a Portfolio may experience a decline in the value of its portfolio securities, in US dollar terms, due solely to fluctuations in currency exchange rates.
(e) Forward Currency Contracts and Currency Hedging Risk—Forward currency contracts, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses,
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perhaps substantially, particularly since forward currency contracts, like most derivative instruments, have a leverage component that provides investment exposure in excess of the amount invested. Forward currency contacts are subject to the risks of the creditworthiness of and default by the counterparty and consequently may lose all of a portion of their value due solely to the creditworthiness of or default by the counterparty. Forward currency contracts also may be illiquid. Changes in liquidity may result in significant, rapid and unpredictable changes in the value of such contracts. Forward currency contracts are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related currencies. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Forward currency contracts incur costs, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of forward currency contracts, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to accurately predict movements in currency exchange rates and, for hedging transactions, there may be imperfect correlations between movements in exchange rates that could cause a Portfolio to incur significant losses. Use of forward currency contracts, even if entered into for hedging purposes, may cause a Portfolio to experience losses greater than if the Portfolio had not engaged in such transactions.
(f) Country Risk—Implementation of certain Portfolios’ investment strategy may, during certain periods, result in the investment of a significant portion of such Portfolios’ assets in a particular country, such as China or Japan, and a Portfolio would be expected to be affected by political, regulatory, market, economic and social developments affecting that country.
Specific risks associated with investments in China include exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations (including currency blockage), trading halts, imposition of tariffs, limitations on repatriation and differing legal standards. Certain Portfolios may invest in eligible renminbi-denominated class A shares of equity securities that are listed and traded on certain
258 Semi-Annual Report
Chinese stock exchanges (“China A-Shares”) through Hong Kong Stock Connect Program (“Stock Connect”). While Stock Connect is not subject to individual investment quotas, daily and aggregate investment quotas apply to all Stock Connect participants, which may restrict or preclude a Portfolio’s ability to invest in China A-Shares (although the Portfolio would be permitted to sell China A-Shares regardless of the quota balance). Stock Connect is also subject to trading, clearance, settlement and operational risks.
Over the last few decades, Japan’s economic growth rate had remained relatively low compared to that of its Asian neighbors and other major developed economies mainly due to deflation. Japan has few natural resources and limited land area and is reliant on imports for its commodity needs. Fluctuations or shortages in relevant commodity markets could have a negative impact on Japan’s economy. The Japanese economy also can be adversely affected by trade tariffs, other protectionist measures, competition from emerging economies, and the economic conditions of its trading partners. Japan has a growing economic relationship with China and other Southeast Asian countries, and economic, political or social instability in those countries could have an adverse effect on Japan’s economy. The Japanese yen has fluctuated widely at times, and any increase in the yen’s value may cause a decline in Japan’s exports.
(g) Sector Risk—Implementation of certain Portfolios’ investment strategy may, during certain periods, result in the investment of a significant portion of such Portfolios’ assets in a particular market sector, and a Portfolio would be expected to be affected by developments in that sector.
(h) Franchise Companies Risk—Changes in the worldwide economy, consumer spending, competition, demographics and consumer preferences, government regulation and economic conditions may adversely affect franchise companies individually or across an industry and may negatively impact a Portfolio to a greater extent than if the Portfolio’s assets were invested more broadly in a number of types of companies.
Semi-Annual Report 259
(i) Infrastructure Companies Risk—Securities and instruments of infrastructure companies are more susceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Infrastructure companies also may be affected by or subject to, among other factors, regulation by various government authorities, including rate regulation and service interruption due to environmental, operational or other mishaps.
(j) Sustainable Investing Risk—An investment strategy focused on (a) the financial sustainability of a company as a business-a company whose financial productivity is likely to be supported or enhanced in the future as a result of the move toward a more sustainable world (such as by considering the nature of the products and/or services that the company provides, from the perspective of environmental and social factors that impact financial productivity)-and (b) how the company counters potential risks arising as a result of environmental and social concerns that may be material to the particular companies or the industries or sectors in which they operate (collectively, “Sustainable Companies”) may cause the Investment Manager to forgo investments that the Investment Manager otherwise believes may be attractive but that are not considered to be Sustainable Companies.
(k) Other Equity Securities Risk—Investments in rights and warrants involve certain risks, including the possible lack of a liquid market for resale, price fluctuations and the failure of the price of the underlying security to reach a level at which the right or warrant can be prudently exercised, in which case the right or warrant may expire without being exercised and result in a loss of a Portfolio’s entire investment.
260 Semi-Annual Report
(l) Depositary Receipts Risk—ADRs and similar depositary receipts typically will be subject to certain of the risks associated with direct investments in the securities of non-US companies, because their values depend on the performance of the underlying non-US securities. However, currency fluctuations will impact investments in depositary receipts differently than direct investments in non-US dollar-denominated non-US securities, because a depositary receipt will not appreciate in value solely as a result of appreciation in the currency in which the underlying non-US dollar security is denominated.
(m) REIT Risk—REITs are subject to similar risks as an investment in a realty-related company. The risks related to investments in realty-related companies include, but are not limited to: adverse changes in general economic and local market conditions; adverse developments in employment; changes in supply or demand for similar or competing properties; unfavorable changes in applicable taxes, governmental regulations and interest rates; operating or development expenses; and lack of available financing. Due to certain special considerations that apply to REITs, investments in REITs may carry additional risks not necessarily present in investments in other securities. REIT securities (including those trading on national exchanges) typically have trading volumes that are less than those of other types of stocks traded on national exchanges, which may affect a Portfolio’s ability to trade or liquidate those securities. An investment in REITs may be adversely affected if the REIT fails to comply with applicable laws and regulations, including failing to qualify as a REIT under the Code. Failure to qualify with any of these requirements could jeopardize a company’s status as a REIT. A Portfolio generally will have no control over the operations and policies of a REIT, and the Portfolio generally will have no ability to cause a REIT to take the actions necessary to qualify as a REIT.
(n) ETF Risk—Shares of exchange-traded funds (“ETFs”) may trade at prices that vary from their net asset values, sometimes significantly. The shares of ETFs may trade at prices at, below or above their most recent net asset value. In addition, the performance of an ETF pursuing a passive index-based strategy may diverge from
Semi-Annual Report 261
the performance of the index. A Portfolio’s investments in ETFs are subject to the risks of such ETF’s investments, as well as to the general risks of investing in ETFs. A Portfolio investing in ETFs will bear not only the Portfolio’s management fees and operating expenses, but also the Portfolio’s proportional share of the management fees and operating expenses of the ETFs in which the Portfolio invests. A Portfolio may be limited by the 1940 Act in the amount of its assets that may be invested in ETFs unless an ETF has received an exemptive order from the US Securities and Exchange Commission (the “SEC”) on which the Portfolio may rely or an exemption is available. New Rule 12d1-4 under the 1940 Act will allow the Portfolio to acquire the securities of another investment company, including ETFs, in excess of the limitations imposed by Section 12 of the 1940 Act without obtaining an exemptive order from the SEC, subject to certain limitations and conditions. The aforementioned exemptive orders will be rescinded effective January 19, 2022, and by such date the Portfolio will have to comply with the requirements of Rule 12d1-4 in order to rely on its exemptions from the requirements of Section 12.
(o) Non-Diversification Risk—The net asset value of a Portfolio that is classified as “non-diversified” may be more vulnerable to changes in the market value of a single issuer or group of issuers and may be relatively more susceptible to adverse effects from any single corporate, industry, economic, market, political or regulatory occurrence than if the Portfolio’s investments consisted of securities issued by a larger number of issuers.
(p) Cybersecurity Risk—The Portfolios and their service providers are susceptible to operational and information security and related risks of cybersecurity incidents. Cybersecurity attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through “hacking” or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data or causing operational disruption. Cybersecurity incidents affecting the Investment Manager, transfer agent or custodian or other service providers such as financial intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in financial losses,
262 Semi-Annual Report
including by impediments to a Portfolio’s investment trading; the inability of Portfolio shareholders to purchase and redeem Portfolio shares; interference with a Portfolio’s ability to calculate its NAV; violations of applicable privacy, data security or other laws; regulatory fines and penalties; reputational damage; reimbursement or other compensation or remediation costs; legal fees; or additional compliance costs. Similar adverse consequences could result from cybersecurity incidents affecting issuers of securities in which a Portfolio invests; counterparties with which a Portfolio engages in transactions; governmental and other regulatory authorities, exchange and other financial market operators; and banks, brokers, dealers, insurance companies and other financial institutions and other parties. There are inherent limitations in any cybersecurity risk management systems or business continuity plans, including the possibility that certain risks have not been identified.
8. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnification provisions. A Portfolio’s maximum exposure under these arrangements is unknown. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
9. Fair Value Measurements
Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best informa-
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tion available in the circumstances. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below:
• | Level 1 – unadjusted quoted prices in active markets for identical assets and liabilities |
• | Level 2 – other significant observable inputs (including unadjusted quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of assets and liabilities) |
Changes in valuation methodology or inputs may result in transfers into or out of the current assigned level within the hierarchy.
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.
264 Semi-Annual Report
The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of June 30, 2021:
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
Developing Markets Equity Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Brazil | $ | 9,736,078 | $ | — | $ | — | $ | 9,736,078 | ||||||||
Canada | 4,126,563 | — | — | 4,126,563 | ||||||||||||
China | 25,226,712 | 34,361,744 | — | 59,588,456 | ||||||||||||
Colombia | 3,826,080 | — | — | 3,826,080 | ||||||||||||
Hong Kong | — | 2,972,320 | — | 2,972,320 | ||||||||||||
India | 11,611,292 | 11,599,113 | — | 23,210,405 | ||||||||||||
Indonesia | — | 5,591,015 | — | 5,591,015 | ||||||||||||
Macau | — | 3,198,732 | — | 3,198,732 | ||||||||||||
Mexico | 5,408,753 | — | — | 5,408,753 | ||||||||||||
Peru | 1,362,124 | — | — | 1,362,124 | ||||||||||||
Philippines | — | 4,442,571 | — | 4,442,571 | ||||||||||||
Poland | — | 2,417,097 | — | 2,417,097 | ||||||||||||
Russia | 2,768,589 | 11,076,685 | — | 13,845,274 | ||||||||||||
South Africa | — | 9,928,807 | — | 9,928,807 | ||||||||||||
South Korea | — | 30,632,513 | — | 30,632,513 | ||||||||||||
Taiwan | 3,072,377 | 29,872,253 | — | 32,944,630 | ||||||||||||
Preferred Stocks* | ||||||||||||||||
Brazil | 4,361,772 | — | — | 4,361,772 | ||||||||||||
Short-Term Investments | 1,514,776 | — | — | 1,514,776 | ||||||||||||
Total | $ | 73,015,116 | $ | 146,092,850 | $ | — | $ | 219,107,966 |
Semi-Annual Report 265
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) |
Significant | Balance as of June 30, 2021 | ||||||||||||
Emerging Markets Core Equity Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Argentina | $ | 1,665,277 | $ | — | $ | — | $ | 1,665,277 | ||||||||
Brazil | 13,327,378 | — | — | 13,327,378 | ||||||||||||
Canada | 1,371,183 | — | — | 1,371,183 | ||||||||||||
China | 21,434,485 | 43,926,630 | — | 65,361,115 | ||||||||||||
Hong Kong | — | 3,258,341 | — | 3,258,341 | ||||||||||||
India | 8,773,949 | 10,744,920 | — | 19,518,869 | ||||||||||||
Indonesia | 834,057 | 1,259,705 | — | 2,093,762 | ||||||||||||
Mexico | 5,939,338 | — | — | 5,939,338 | ||||||||||||
Philippines | — | 1,572,620 | — | 1,572,620 | ||||||||||||
Poland | — | 3,731,744 | — | 3,731,744 | ||||||||||||
Russia | 2,260,649 | 7,968,571 | — | 10,229,220 | ||||||||||||
South Africa | — | 4,321,023 | — | 4,321,023 | ||||||||||||
South Korea | — | 27,831,800 | — | 27,831,800 | ||||||||||||
Taiwan | 21,321,431 | 3,930,888 | — | 25,252,319 | ||||||||||||
United Kingdom | 2,471,040 | 1,728,286 | — | 4,199,326 | ||||||||||||
United States | 1,946,094 | — | — | 1,946,094 | ||||||||||||
Preferred Stocks* | ||||||||||||||||
Brazil | 1,286,465 | — | — | 1,286,465 | ||||||||||||
Short-Term Investments | 1,017,133 | — | — | 1,017,133 | ||||||||||||
Total | $ | 83,648,479 | $ | 110,274,528 | $ | — | $ | 193,923,007 |
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Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
Emerging Markets Equity Advantage Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Brazil | $ | 2,500,408 | $ | — | $ | — | $ | 2,500,408 | ||||||||
China | 6,732,523 | 19,991,593 | — | 26,724,116 | ||||||||||||
Greece | — | 462,012 | — | 462,012 | ||||||||||||
Hong Kong | — | 455,174 | — | 455,174 | ||||||||||||
Hungary | — | 447,182 | — | 447,182 | ||||||||||||
India | 4,647,217 | 1,163,532 | — | 5,810,749 | ||||||||||||
Indonesia | 355,020 | 494,083 | — | 849,103 | ||||||||||||
Malaysia | — | 1,281,420 | — | 1,281,420 | ||||||||||||
Mexico | 1,649,981 | — | — | 1,649,981 | ||||||||||||
Philippines | — | 366,448 | — | 366,448 | ||||||||||||
Poland | — | 1,321,029 | — | 1,321,029 | ||||||||||||
Russia | 109,238 | 1,912,265 | — | 2,021,503 | ||||||||||||
Saudi Arabia | — | 1,964,357 | — | 1,964,357 | ||||||||||||
South Africa | — | 1,613,622 | — | 1,613,622 | ||||||||||||
South Korea | — | 11,047,697 | — | 11,047,697 | ||||||||||||
Taiwan | 134,930 | 11,365,811 | — | 11,500,741 | ||||||||||||
Thailand | 274,228 | 1,379,006 | — | 1,653,234 | ||||||||||||
Turkey | — | 639,164 | — | 639,164 | ||||||||||||
United States | 738,224 | — | — | 738,224 | ||||||||||||
Preferred Stocks* | ||||||||||||||||
Brazil | 124,622 | — | — | 124,622 | ||||||||||||
Warrants | 3,780 | — | — | 3,780 | ||||||||||||
Short-Term Investments | 702,754 | — | — | 702,754 | ||||||||||||
Total | $ | 17,972,925 | $ | 55,904,395 | $ | — | $ | 73,877,320 |
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Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
Emerging Markets Equity Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Brazil | $ | 323,007,507 | $ | — | $ | — | $ | 323,007,507 | ||||||||
China | — | 702,169,476 | — | 702,169,476 | ||||||||||||
Egypt | — | 39,031,962 | — | 39,031,962 | ||||||||||||
Greece | — | 30,296,468 | — | 30,296,468 | ||||||||||||
Hong Kong | — | 37,863,909 | — | 37,863,909 | ||||||||||||
Hungary | — | 99,527,911 | — | 99,527,911 | ||||||||||||
India | 21,286,626 | 361,452,739 | — | 382,739,365 | ||||||||||||
Indonesia | 56,832,782 | 89,321,766 | — | 146,154,548 | ||||||||||||
Mexico | 219,392,933 | — | — | 219,392,933 | ||||||||||||
Portugal | — | 40,796,624 | — | 40,796,624 | ||||||||||||
Russia | 67,345,563 | 361,559,962 | — | 428,905,525 | ||||||||||||
South Africa | — | 272,312,215 | — | 272,312,215 | ||||||||||||
South Korea | — | 625,720,052 | — | 625,720,052 | ||||||||||||
Taiwan | — | 365,917,131 | — | 365,917,131 | ||||||||||||
Thailand | 61,686,178 | 34,853,743 | — | 96,539,921 | ||||||||||||
United Kingdom | — | 120,219,154 | — | 120,219,154 | ||||||||||||
Exchange-Traded Funds | 215,637,481 | — | — | 215,637,481 | ||||||||||||
Short-Term Investments | 104,299,399 | — | — | 104,299,399 | ||||||||||||
Total | $ | 1,069,488,469 | $ | 3,181,043,112 | $ | — | $ | 4,250,531,581 | ||||||||
Emerging Markets Strategic Equity Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Brazil | $ | 3,341,952 | $ | — | $ | — | $ | 3,341,952 | ||||||||
China | 8,322,885 | 17,202,228 | — | 25,525,113 | ||||||||||||
Egypt | — | 487,033 | — | 487,033 | ||||||||||||
Greece | — | 441,154 | — | 441,154 | ||||||||||||
Hong Kong | — | 1,758,149 | — | 1,758,149 | ||||||||||||
Hungary | — | 137,745 | — | 137,745 | ||||||||||||
India | — | 9,725,020 | — | 9,725,020 | ||||||||||||
Indonesia | 524,609 | 1,251,268 | — | 1,775,877 | ||||||||||||
Mexico | 2,801,027 | — | — | 2,801,027 | ||||||||||||
Russia | 1,403,772 | 3,642,685 | — | 5,046,457 | ||||||||||||
South Africa | — | 2,706,802 | — | 2,706,802 | ||||||||||||
South Korea | — | 9,276,786 | — | 9,276,786 | ||||||||||||
Taiwan | — | 8,679,172 | — | 8,679,172 | ||||||||||||
Thailand | 428,518 | 589,516 | — | 1,018,034 | ||||||||||||
United Kingdom | — | 2,928,049 | — | 2,928,049 | ||||||||||||
United States | 1,254,378 | — | — | 1,254,378 | ||||||||||||
Short-Term Investments | 839,365 | — | — | 839,365 | ||||||||||||
Total | $ | 18,916,506 | $ | 58,825,607 | $ | — | $ | 77,742,113 |
268 Semi-Annual Report
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
Equity Franchise Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Australia | $ | — | $ | 2,074,183 | $ | — | $ | 2,074,183 | ||||||||
France | — | 7,478,871 | — | 7,478,871 | ||||||||||||
Germany | — | 5,313,490 | — | 5,313,490 | ||||||||||||
Italy | — | 8,621,652 | — | 8,621,652 | ||||||||||||
Luxembourg | — | 3,735,780 | — | 3,735,780 | ||||||||||||
Spain | — | 4,692,531 | — | 4,692,531 | ||||||||||||
United Kingdom | — | 10,306,091 | — | 10,306,091 | ||||||||||||
United States | 58,528,052 | — | — | 58,528,052 | ||||||||||||
Short-Term Investments | 2,626,710 | — | — | 2,626,710 | ||||||||||||
Total | $ | 61,154,762 | $ | 42,222,598 | $ | — | $ | 103,377,360 | ||||||||
Global Equity Select Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Canada | $ | 7,318,852 | $ | — | $ | — | $ | 7,318,852 | ||||||||
China | 2,010,178 | 2,280,870 | — | 4,291,048 | ||||||||||||
Denmark | — | 2,099,978 | — | 2,099,978 | ||||||||||||
France | — | 2,689,869 | — | 2,689,869 | ||||||||||||
Germany | — | 2,120,852 | — | 2,120,852 | ||||||||||||
Hong Kong | — | 4,058,410 | — | 4,058,410 | ||||||||||||
India | 1,603,302 | — | — | 1,603,302 | ||||||||||||
Japan | — | 4,549,812 | — | 4,549,812 | ||||||||||||
Netherlands | 1,535,700 | 2,922,760 | — | 4,458,460 | ||||||||||||
South Korea | — | 1,378,579 | — | 1,378,579 | ||||||||||||
Spain | — | 1,020,282 | — | 1,020,282 | ||||||||||||
Sweden | — | 2,515,368 | — | 2,515,368 | ||||||||||||
Switzerland | — | 4,789,091 | — | 4,789,091 | ||||||||||||
Taiwan | 2,361,384 | — | — | 2,361,384 | ||||||||||||
United Kingdom | 1,264,287 | 8,125,054 | — | 9,389,341 | ||||||||||||
United States | 50,502,966 | — | — | 50,502,966 | ||||||||||||
Preferred Stocks* | ||||||||||||||||
Brazil | 1,096,435 | — | — | 1,096,435 | ||||||||||||
Short-Term Investments | 2,115,265 | — | — | 2,115,265 | ||||||||||||
Total | $ | 69,808,369 | $ | 38,550,925 | $ | — | $ | 108,359,294 |
Semi-Annual Report 269
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
Global Listed Infrastructure Portfolio | ||||||||||||||||
Assets: | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Australia | $ | — | $ | 783,160,200 | $ | — | $ | 783,160,200 | ||||||||
Canada | 67,326,215 | — | — | 67,326,215 | ||||||||||||
France | — | 517,933,085 | — | 517,933,085 | ||||||||||||
Hong Kong | — | 327,676,460 | — | 327,676,460 | ||||||||||||
Italy | — | 1,909,645,625 | — | 1,909,645,625 | ||||||||||||
Luxembourg | — | 157,217,114 | — | 157,217,114 | ||||||||||||
Portugal | — | 59,562,600 | — | 59,562,600 | ||||||||||||
Spain | — | 698,785,650 | — | 698,785,650 | ||||||||||||
United Kingdom | — | 1,756,814,575 | — | 1,756,814,575 | ||||||||||||
United States | 1,184,937,504 | — | — | 1,184,937,504 | ||||||||||||
Short-Term Investments | 855,339,114 | — | — | 855,339,114 | ||||||||||||
Other Financial Instruments† | ||||||||||||||||
Forward Currency Contracts | — | 93,901,596 | — | 93,901,596 | ||||||||||||
Total | $ | 2,107,602,833 | $ | 6,304,696,905 | $ | — | $ | 8,412,299,738 | ||||||||
Liabilities: | ||||||||||||||||
Other Financial Instruments† | ||||||||||||||||
Forward Currency Contracts | $ | — | $ | (20,128 | ) | $ | — | $ | (20,128 | ) |
270 Semi-Annual Report
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
Global Strategic Equity Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Brazil | $ | 194,205 | $ | — | $ | — | $ | 194,205 | ||||||||
Canada | 411,658 | — | — | 411,658 | ||||||||||||
China | 349,241 | 240,701 | — | 589,942 | ||||||||||||
Denmark | — | 288,781 | — | 288,781 | ||||||||||||
France | — | 522,971 | — | 522,971 | ||||||||||||
Germany | — | 1,064,234 | — | 1,064,234 | ||||||||||||
Greece | — | 173,666 | — | 173,666 | ||||||||||||
Hong Kong | — | 261,002 | — | 261,002 | ||||||||||||
India | 257,675 | — | — | 257,675 | ||||||||||||
Israel | 121,412 | — | — | 121,412 | ||||||||||||
Italy | — | 199,326 | — | 199,326 | ||||||||||||
Japan | — | 921,559 | — | 921,559 | ||||||||||||
Netherlands | — | 246,618 | — | 246,618 | ||||||||||||
Poland | — | 173,182 | — | 173,182 | ||||||||||||
Portugal | — | 157,033 | — | 157,033 | ||||||||||||
South Korea | — | 199,353 | — | 199,353 | ||||||||||||
Spain | — | 298,436 | — | 298,436 | ||||||||||||
Switzerland | — | 494,846 | — | 494,846 | ||||||||||||
United Kingdom | — | 1,488,304 | — | 1,488,304 | ||||||||||||
United States | 8,840,542 | — | — | 8,840,542 | ||||||||||||
Preferred Stocks* | ||||||||||||||||
Germany | — | 254,788 | — | 254,788 | ||||||||||||
Short-Term Investments | 149,179 | — | — | 149,179 | ||||||||||||
Total | $ | 10,323,912 | $ | 6,984,800 | $ | — | $ | 17,308,712 |
Semi-Annual Report 271
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
International Equity Advantage Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Australia | $ | — | $ | 188,615 | $ | — | $ | 188,615 | ||||||||
Austria | — | 5,297 | — | 5,297 | ||||||||||||
Belgium | — | 31,224 | — | 31,224 | ||||||||||||
China | — | 41,650 | — | 41,650 | ||||||||||||
Denmark | — | 107,168 | — | 107,168 | ||||||||||||
Finland | — | 55,782 | — | 55,782 | ||||||||||||
France | — | 297,303 | — | 297,303 | ||||||||||||
Germany | — | 297,263 | — | 297,263 | ||||||||||||
Hong Kong | — | 70,996 | — | 70,996 | ||||||||||||
Israel | — | 8,964 | — | 8,964 | ||||||||||||
Italy | — | 61,053 | — | 61,053 | ||||||||||||
Japan | 78,670 | 585,910 | — | 664,580 | ||||||||||||
Malta | — | 12,559 | — | 12,559 | ||||||||||||
Netherlands | — | 190,886 | — | 190,886 | ||||||||||||
Norway | — | 4,477 | — | 4,477 | ||||||||||||
Singapore | — | 28,580 | — | 28,580 | ||||||||||||
South Africa | — | 2,687 | — | 2,687 | ||||||||||||
Spain | — | 28,847 | — | 28,847 | ||||||||||||
Sweden | — | 103,031 | — | 103,031 | ||||||||||||
Switzerland | — | 280,993 | — | 280,993 | ||||||||||||
United Kingdom | — | 374,271 | — | 374,271 | ||||||||||||
United States | 21,498 | 35,640 | — | 57,138 | ||||||||||||
Short-Term Investments | 21,128 | — | — | 21,128 | ||||||||||||
Total | $ | 121,296 | $ | 2,813,196 | $ | — | $ | 2,934,492 |
272 Semi-Annual Report
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
International Equity Concentrated Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Brazil | $ | 84,186 | $ | — | $ | — | $ | 84,186 | ||||||||
Canada | 209,174 | — | — | 209,174 | ||||||||||||
China | 32,300 | 198,000 | — | 230,300 | ||||||||||||
France | — | 290,577 | — | 290,577 | ||||||||||||
Germany | — | 60,375 | — | 60,375 | ||||||||||||
Hong Kong | — | 66,141 | — | 66,141 | ||||||||||||
India | 83,825 | — | — | 83,825 | ||||||||||||
Japan | — | 246,229 | — | 246,229 | ||||||||||||
Luxembourg | — | 69,224 | — | 69,224 | ||||||||||||
Mexico | 157,161 | — | — | 157,161 | ||||||||||||
Russia | — | 39,937 | — | 39,937 | ||||||||||||
South Korea | — | 127,511 | — | 127,511 | ||||||||||||
United Kingdom | 52,973 | 224,017 | — | 276,990 | ||||||||||||
United States | 143,416 | — | — | 143,416 | ||||||||||||
Preferred Stocks* | ||||||||||||||||
Brazil | 71,338 | — | — | 71,338 | ||||||||||||
Germany | — | 88,774 | — | 88,774 | ||||||||||||
Short-Term Investments | 114,684 | — | — | 114,684 | ||||||||||||
Total | $ | 949,057 | $ | 1,410,785 | $ | — | $ | 2,359,842 |
Semi-Annual Report 273
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
International Equity Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Canada | $ | 103,952,952 | $ | — | $ | — | $ | 103,952,952 | ||||||||
China | 33,956,556 | 50,568,934 | — | 84,525,490 | ||||||||||||
Denmark | — | 110,110,155 | — | 110,110,155 | ||||||||||||
Finland | — | 58,894,329 | — | 58,894,329 | ||||||||||||
France | — | 371,424,879 | — | 371,424,879 | ||||||||||||
Germany | — | 249,361,851 | — | 249,361,851 | ||||||||||||
Hong Kong | — | 26,611,677 | — | 26,611,677 | ||||||||||||
India | — | 25,106,588 | — | 25,106,588 | ||||||||||||
Ireland | 37,715,622 | — | — | 37,715,622 | ||||||||||||
Israel | — | 34,319,655 | — | 34,319,655 | ||||||||||||
Italy | — | 54,978,183 | — | 54,978,183 | ||||||||||||
Japan | — | 460,089,615 | — | 460,089,615 | ||||||||||||
Mexico | 21,785,397 | — | — | 21,785,397 | ||||||||||||
Netherlands | — | 143,647,115 | — | 143,647,115 | ||||||||||||
Norway | — | 65,962,130 | — | 65,962,130 | ||||||||||||
Portugal | — | 24,885,468 | — | 24,885,468 | ||||||||||||
Singapore | — | 32,816,450 | — | 32,816,450 | ||||||||||||
South Korea | — | 38,967,806 | — | 38,967,806 | ||||||||||||
Spain | — | 83,805,615 | — | 83,805,615 | ||||||||||||
Sweden | — | 35,738,531 | — | 35,738,531 | ||||||||||||
Switzerland | — | 102,359,883 | — | 102,359,883 | ||||||||||||
United Kingdom | — | 307,253,213 | — | 307,253,213 | ||||||||||||
United States | 134,795,036 | 45,914,478 | — | 180,709,514 | ||||||||||||
Preferred Stocks* | ||||||||||||||||
Germany | — | 59,767,330 | — | 59,767,330 | ||||||||||||
Short-Term Investments | 89,705,320 | — | — | 89,705,320 | ||||||||||||
Total | $ | 421,910,883 | $ | 2,382,583,885 | $ | — | $ | 2,804,494,768 |
274 Semi-Annual Report
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
International Equity Select Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Australia | $ | — | $ | 1,237,380 | $ | — | $ | 1,237,380 | ||||||||
Brazil | 1,475,590 | — | — | 1,475,590 | ||||||||||||
Canada | 1,645,524 | — | — | 1,645,524 | ||||||||||||
China | 1,055,724 | 6,785,845 | — | 7,841,569 | ||||||||||||
Denmark | — | 2,779,261 | — | 2,779,261 | ||||||||||||
Finland | — | 1,077,340 | — | 1,077,340 | ||||||||||||
France | — | 9,895,781 | — | 9,895,781 | ||||||||||||
Germany | — | 3,422,560 | — | 3,422,560 | ||||||||||||
Hong Kong | — | 1,531,101 | — | 1,531,101 | ||||||||||||
India | 1,545,584 | 1,178,601 | — | 2,724,185 | ||||||||||||
Indonesia | 507,035 | 807,615 | — | 1,314,650 | ||||||||||||
Ireland | 909,721 | — | — | 909,721 | ||||||||||||
Italy | — | 1,467,225 | — | 1,467,225 | ||||||||||||
Japan | — | 9,773,230 | — | 9,773,230 | ||||||||||||
Mexico | 1,318,992 | — | — | 1,318,992 | ||||||||||||
Netherlands | — | 3,766,122 | — | 3,766,122 | ||||||||||||
Norway | — | 1,796,023 | — | 1,796,023 | ||||||||||||
Singapore | — | 938,678 | — | 938,678 | ||||||||||||
South Africa | — | 753,503 | — | 753,503 | ||||||||||||
South Korea | — | 4,370,138 | — | 4,370,138 | ||||||||||||
Spain | — | 1,109,748 | — | 1,109,748 | ||||||||||||
Sweden | — | 2,166,908 | — | 2,166,908 | ||||||||||||
Switzerland | — | 4,586,554 | — | 4,586,554 | ||||||||||||
United Kingdom | — | 9,140,582 | — | 9,140,582 | ||||||||||||
United States | 4,968,750 | 1,199,616 | — | 6,168,366 | ||||||||||||
Preferred Stocks* | ||||||||||||||||
Brazil | 1,285,167 | — | — | 1,285,167 | ||||||||||||
Germany | — | 1,632,298 | — | 1,632,298 | ||||||||||||
Short-Term Investments | 1,112,612 | — | — | 1,112,612 | ||||||||||||
Total | $ | 15,824,699 | $ | 71,416,109 | $ | — | $ | 87,240,808 |
Semi-Annual Report 275
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
International Equity Value Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Canada | $ | 40,808 | $ | — | $ | — | $ | 40,808 | ||||||||
China | 77,067 | — | — | 77,067 | ||||||||||||
France | — | 708,187 | — | 708,187 | ||||||||||||
Germany | — | 200,323 | — | 200,323 | ||||||||||||
Japan | 103,053 | 615,344 | — | 718,397 | ||||||||||||
Macau | — | 105,067 | — | 105,067 | ||||||||||||
Mexico | 195,754 | — | — | 195,754 | ||||||||||||
Netherlands | — | 130,743 | — | 130,743 | ||||||||||||
South Korea | — | 215,443 | — | 215,443 | ||||||||||||
Spain | — | 61,041 | — | 61,041 | ||||||||||||
Switzerland | — | 304,432 | — | 304,432 | ||||||||||||
United Kingdom | — | 321,945 | — | 321,945 | ||||||||||||
United States | — | 127,534 | — | 127,534 | ||||||||||||
Short-Term Investments | 20,496 | — | — | 20,496 | ||||||||||||
Total | $ | 437,178 | $ | 2,790,059 | $ | — | $ | 3,227,237 | ||||||||
International Quality Growth Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Canada | $ | 2,606,245 | $ | — | $ | — | $ | 2,606,245 | ||||||||
China | 1,050,445 | 1,045,546 | — | 2,095,991 | ||||||||||||
Denmark | — | 2,038,036 | — | 2,038,036 | ||||||||||||
France | — | 2,335,321 | — | 2,335,321 | ||||||||||||
Germany | — | 1,479,628 | — | 1,479,628 | ||||||||||||
Hong Kong | — | 626,405 | — | 626,405 | ||||||||||||
India | 972,277 | — | — | 972,277 | ||||||||||||
Israel | 529,669 | — | — | 529,669 | ||||||||||||
Japan | — | 2,487,844 | — | 2,487,844 | ||||||||||||
Netherlands | — | 1,875,795 | — | 1,875,795 | ||||||||||||
Norway | — | 420,150 | — | 420,150 | ||||||||||||
South Africa | — | 560,084 | — | 560,084 | ||||||||||||
South Korea | — | 618,092 | — | 618,092 | ||||||||||||
Spain | — | 354,553 | — | 354,553 | ||||||||||||
Sweden | — | 1,476,952 | — | 1,476,952 | ||||||||||||
Switzerland | — | 1,107,806 | — | 1,107,806 | ||||||||||||
Taiwan | 1,105,472 | — | — | 1,105,472 | ||||||||||||
United Kingdom | — | 4,541,480 | — | 4,541,480 | ||||||||||||
United States | 809,396 | — | — | 809,396 | ||||||||||||
Preferred Stocks* | ||||||||||||||||
Brazil | 603,939 | — | — | 603,939 | ||||||||||||
Short-Term Investments | 474,055 | — | — | 474,055 | ||||||||||||
Total | $ | 8,151,498 | $ | 20,967,692 | $ | — | $ | 29,119,190 |
276 Semi-Annual Report
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
International Small Cap Equity Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Australia | $ | — | $ | 1,522,371 | $ | — | $ | 1,522,371 | ||||||||
Austria | — | 539,331 | — | 539,331 | ||||||||||||
Belgium | — | 1,031,029 | — | 1,031,029 | ||||||||||||
Canada | 1,811,888 | — | — | 1,811,888 | ||||||||||||
Denmark | — | 587,058 | — | 587,058 | ||||||||||||
Finland | — | 1,078,494 | — | 1,078,494 | ||||||||||||
France | — | 334,488 | — | 334,488 | ||||||||||||
Germany | 743,082 | 4,783,395 | — | 5,526,477 | ||||||||||||
Greece | — | 498,476 | — | 498,476 | ||||||||||||
Hong Kong | — | 351,628 | — | 351,628 | ||||||||||||
Ireland | — | 403,752 | — | 403,752 | ||||||||||||
Israel | — | 389,407 | — | 389,407 | ||||||||||||
Italy | — | 1,448,445 | — | 1,448,445 | ||||||||||||
Japan | — | 9,534,451 | — | 9,534,451 | ||||||||||||
Jersey | — | 659,510 | — | 659,510 | ||||||||||||
Luxembourg | — | 426,621 | — | 426,621 | ||||||||||||
Netherlands | — | 2,800,730 | — | 2,800,730 | ||||||||||||
New Zealand | — | 439,819 | — | 439,819 | ||||||||||||
Norway | — | 353,896 | — | 353,896 | ||||||||||||
Russia | — | 90,252 | — | 90,252 | ||||||||||||
Singapore | — | 393,903 | — | 393,903 | ||||||||||||
Spain | — | 591,963 | — | 591,963 | ||||||||||||
Sweden | — | 1,419,175 | — | 1,419,175 | ||||||||||||
Switzerland | — | 478,604 | — | 478,604 | ||||||||||||
United Kingdom | — | 6,640,481 | — | 6,640,481 | ||||||||||||
United States | — | 381,129 | — | 381,129 | ||||||||||||
Short-Term Investments | 770,781 | — | — | 770,781 | ||||||||||||
Total | $ | 3,325,751 | $ | 37,178,408 | $ | — | $ | 40,504,159 |
Semi-Annual Report 277
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
International Strategic Equity Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Brazil | $ | 58,160,920 | $ | — | $ | — | $ | 58,160,920 | ||||||||
Canada | 520,609,000 | — | — | 520,609,000 | ||||||||||||
China | 110,915,975 | 156,034,852 | — | 266,950,827 | ||||||||||||
Denmark | — | 222,259,050 | — | 222,259,050 | ||||||||||||
Finland | — | 103,234,353 | — | 103,234,353 | ||||||||||||
France | — | 705,168,868 | — | 705,168,868 | ||||||||||||
Germany | — | 135,763,568 | — | 135,763,568 | ||||||||||||
Hong Kong | — | 182,543,980 | — | 182,543,980 | ||||||||||||
India | — | 68,848,333 | — | 68,848,333 | ||||||||||||
Ireland | 75,747,000 | — | — | 75,747,000 | ||||||||||||
Israel | — | 118,048,805 | — | 118,048,805 | ||||||||||||
Italy | — | 126,299,428 | — | 126,299,428 | ||||||||||||
Japan | — | 882,703,529 | — | 882,703,529 | ||||||||||||
Mexico | 68,492,119 | — | — | 68,492,119 | ||||||||||||
Netherlands | — | 128,527,841 | — | 128,527,841 | ||||||||||||
Poland | — | 41,030,752 | — | 41,030,752 | ||||||||||||
Portugal | — | 44,468,614 | — | 44,468,614 | ||||||||||||
South Korea | — | 68,072,573 | — | 68,072,573 | ||||||||||||
Spain | — | 318,427,740 | — | 318,427,740 | ||||||||||||
Sweden | — | 68,662,674 | — | 68,662,674 | ||||||||||||
Switzerland | — | 346,983,876 | — | 346,983,876 | ||||||||||||
United Kingdom | — | 1,095,708,301 | — | 1,095,708,301 | ||||||||||||
United States | 446,322,277 | — | — | 446,322,277 | ||||||||||||
Preferred Stocks* | ||||||||||||||||
Brazil | 47,096,174 | — | — | 47,096,174 | ||||||||||||
Germany | — | 216,355,326 | — | 216,355,326 | ||||||||||||
Short-Term Investments | 159,743,189 | — | — | 159,743,189 | ||||||||||||
Total | $ | 1,487,086,654 | $ | 5,029,142,463 | $ | — | $ | 6,516,229,117 |
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Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | ||||||||||||
Managed Equity Volatility Portfolio | ||||||||||||||||
Common Stocks* | ||||||||||||||||
Australia | $ | — | $ | 383,585 | $ | — | $ | 383,585 | ||||||||
Belgium | — | 307,082 | — | 307,082 | ||||||||||||
Canada | 1,396,776 | — | — | 1,396,776 | ||||||||||||
Denmark | — | 480,716 | — | 480,716 | ||||||||||||
Finland | — | 57,937 | — | 57,937 | ||||||||||||
France | — | 429,333 | — | 429,333 | ||||||||||||
Germany | — | 68,917 | — | 68,917 | ||||||||||||
Hong Kong | — | 283,310 | — | 283,310 | ||||||||||||
Israel | — | 62,941 | — | 62,941 | ||||||||||||
Japan | — | 3,657,303 | — | 3,657,303 | ||||||||||||
Netherlands | — | 622,406 | — | 622,406 | ||||||||||||
New Zealand | — | 69,126 | — | 69,126 | ||||||||||||
Norway | — | 467,516 | — | 467,516 | ||||||||||||
Singapore | — | 77,419 | — | 77,419 | ||||||||||||
Spain | — | 110,738 | — | 110,738 | ||||||||||||
Sweden | — | 395,156 | — | 395,156 | ||||||||||||
Switzerland | — | 766,823 | — | 766,823 | ||||||||||||
United Kingdom | — | 1,105,075 | — | 1,105,075 | ||||||||||||
United States | 15,781,385 | — | — | 15,781,385 | ||||||||||||
Short-Term Investments | 966,225 | — | — | 966,225 | ||||||||||||
Total | $ | 18,144,386 | $ | 9,345,383 | $ | — | $ | 27,489,769 | ||||||||
US Equity Concentrated Portfolio | ||||||||||||||||
Common Stocks* | $ | 1,954,865,765 | $ | — | $ | — | $ | 1,954,865,765 | ||||||||
Short-Term Investments | 7,501,644 | — | — | 7,501,644 | ||||||||||||
Total | $ | 1,962,367,409 | $ | — | $ | — | $ | 1,962,367,409 | ||||||||
US Equity Focus Portfolio | ||||||||||||||||
Common Stocks* | $ | 72,615,171 | $ | — | $ | — | $ | 72,615,171 | ||||||||
Short-Term Investments | 1,452,047 | — | — | 1,452,047 | ||||||||||||
Total | $ | 74,067,218 | $ | — | $ | — | $ | 74,067,218 | ||||||||
US Small-Mid Cap Equity Portfolio | ||||||||||||||||
Common Stocks* | $ | 113,785,398 | $ | — | $ | — | $ | 113,785,398 | ||||||||
US Sustainable Equity Portfolio | ||||||||||||||||
Common Stocks* | $ | 13,363,985 | $ | — | $ | — | $ | 13,363,985 | ||||||||
Short-Term Investments | 221,014 | — | — | 221,014 | ||||||||||||
Total | $ | 13,584,999 | $ | — | $ | — | $ | 13,584,999 |
* | Please refer to Portfolios of Investments and Notes to Portfolios of Investments for portfolio holdings by country and industry. |
† | Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation). |
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10. Derivative Instruments
The Global Listed Infrastructure Portfolio may use derivative instruments, including forward currency contracts.
Forward currency contracts may be used for hedging purposes or to seek to increase returns.
During the period ended June 30, 2021, the approximate average monthly notional exposure for derivative instruments was as follows:
Forward currency contracts: | ||||
Average amounts purchased | $ | 253,600,000 | # | |
Average amounts sold | $ | 5,976,600,000 |
# | Represents average monthly notional exposure for the three months the derivative instrument was open during the period. |
The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of June 30, 2021:
Assets – Derivative Financial Instruments | Total | |||||
Forward currency contracts | Unrealized appreciation on forward currency contracts | $ | 93,901,596 |
Liabilities – Derivative Financial Instruments | Total | |||||
Forward currency contracts | Unrealized depreciation on forward currency contracts | $ | 20,128 |
The effect of derivative instruments on the Statement of Operations for the period ended June 30, 2021 was:
Net Realized Gain (Loss) from: | Total | |||
Forward currency contracts | $ | (42,632,768 | ) |
Net Change in Unrealized Appreciation (Depreciation) on: | Total | |||
Forward currency contracts | $ | 150,022,070 |
None of the other Portfolios presented traded in derivative instruments during the period ended June 30, 2021.
As of June 30, 2021, the Global Listed Infrastructure Portfolio held derivative instruments that are eligible for offset in the Statement
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of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through a single payment in the event of default on, or termination of, any one contract.
The required information for the affected Portfolio is presented in the below table, as of June 30, 2021:
Global Listed Infrastructure Portfolio
Gross Amounts | Net Amounts of | ||||||||||||||||
Offset in the | Assets Presented | ||||||||||||||||
Gross Amounts | Statement of | in the Statement | |||||||||||||||
of Recognized | Assets and | of Assets and | |||||||||||||||
Description | Assets | Liabilities | Liabilities | ||||||||||||||
Forward Currency Contracts | $ | 93,901,596 | $ | — | $ | 93,901,596 |
Amounts Not Offset in the | |||||||||||||||||||||||||
Statement of Assets and Liabilities | |||||||||||||||||||||||||
Net Amounts of | |||||||||||||||||||||||||
Assets Presented | Net Amounts | ||||||||||||||||||||||||
in the Statement of | Financial | Collateral | of Derivative | ||||||||||||||||||||||
Counterparty | Assets and Liabilities | Instruments | Received | Assets | |||||||||||||||||||||
BNP Paribas SA | $ | 9,533,986 | $ | (4,972 | ) | $ | — | $ | 9,529,014 | ||||||||||||||||
Canadian Imperial Bank of Commerce | 13,589,462 | — | — | 13,589,462 | |||||||||||||||||||||
Citibank NA | 10,597,466 | — | — | 10,597,466 | |||||||||||||||||||||
HSBC Bank USA NA | 12,976,455 | (4,342 | ) | — | 12,972,113 | ||||||||||||||||||||
Morgan Stanley Capital Services LLC. | 2,304,762 | (2,942 | ) | — | 2,301,820 | ||||||||||||||||||||
Royal Bank of Canada | 12,296,145 | — | — | 12,296,145 | |||||||||||||||||||||
Standard Chartered Bank | 1,158,904 | (711 | ) | — | 1,158,193 | ||||||||||||||||||||
State Street Bank and Trust Co. | 22,277,419 | (7,161 | ) | — | 22,270,258 | ||||||||||||||||||||
The Bank of New York Mellon Corp. | 9,166,997 | — | — | 9,166,997 | |||||||||||||||||||||
Total | $ | 93,901,596 | $ | (20,128 | ) | $ | — | $ | 93,881,468 |
Semi-Annual Report 281
Gross Amounts | Net Amounts of | ||||||||||||||||
Offset in the | Liabilities Presented | ||||||||||||||||
Gross Amounts | Statement of | in the Statement | |||||||||||||||
of Recognized | Assets and | of Assets and | |||||||||||||||
Description | Liabilities | Liabilities | Liabilities | ||||||||||||||
Forward Currency Contracts | $20,128 | $ | — | $20,128 |
Amounts Not Offset in the | |||||||||||||||||||||||||
Statement of Assets and Liabilities | |||||||||||||||||||||||||
Net Amounts of | |||||||||||||||||||||||||
Liabilities Presented | Net Amounts | ||||||||||||||||||||||||
in the Statement of | Financial | Collateral | of Derivative | ||||||||||||||||||||||
Counterparty | Assets and Liabilities | Instruments | Pledged | Liabilities | |||||||||||||||||||||
BNP Paribas SA | $ | 4,972 | $ | (4,972 | ) | $ | — | $ | — | ||||||||||||||||
HSBC Bank USA NA | 4,342 | (4,342 | ) | — | — | ||||||||||||||||||||
Morgan Stanley Capital Services LLC. | 2,942 | (2,942 | ) | — | — | ||||||||||||||||||||
Standard Chartered Bank | 711 | (711 | ) | — | — | ||||||||||||||||||||
State Street Bank and Trust Co. | 7,161 | (7,161 | ) | — | — | ||||||||||||||||||||
Total | $ | 20,128 | $ | (20,128 | ) | $ | — | $ | — |
11. Accounting Pronouncements
On March 12, 2020, the Financial Accounting Standards Board concluded its reference rate reform project with the issuance of Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”). ASU No. 2020-04 provides elective temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of London Interbank Offered Rate (LIBOR) and other interbank offered based reference rates as of the end of 2021. ASU No. 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU No. 2020-04.
12. Subsequent Events
Management has evaluated subsequent events potentially affecting the Portfolios through the issuance of the financial statements and has determined that there were no subsequent events that required adjustment or disclosure other than the following.
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On July 2, 2021, a supplement to the current summary prospectus and prospectus (the “Supplement” was issued announcing the anticipated liquidation of the Lazard International Equity Concentrated Portfolio on or about September 2, 2021. Upon issuance of the Supplement, the Portfolio was closed to new investments other than those from clients with pre-existing investments in the Portfolio. Promptly upon completion of liquidation of the Portfolio’s investments, the Portfolio will redeem all its outstanding shares by distribution of its assets to shareholders in amounts equal to the net asset value of each shareholder’s Portfolio investment.
Semi-Annual Report 283
The Lazard Funds, Inc. Other Information (unaudited)
Proxy Voting
A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the Securities and Exchange Commission (the “SEC”) website at https://www.sec.gov.
The Fund’s proxy voting record for the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SEC’s website at https://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.
Schedule of Portfolio Holdings
The Fund files the complete schedule of each Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.
Board Consideration of Management Agreement
All Portfolios except Lazard US Sustainable Equity Portfolio1
At meetings of the Board held on May 26, 2021 and June 23, 2021, the Board considered the approval, for an additional annual period, of the Management Agreement between the Fund, on behalf of each of the Portfolios, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel, who advised the Board on relevant legal standards and met with the Independent Directors in executive sessions separate from representatives of the Investment Manager.
1 | Developing Markets Equity, Emerging Markets Core Equity, Emerging Markets Equity, Emerging Markets Equity Advantage, Emerging Markets Strategic Equity, Equity Franchise, Global Equity Select, Global Listed Infrastructure, Global Strategic Equity, International Equity, International Equity Advantage, International Equity Concentrated, International Equity Select, International Equity Value, International Quality Growth, International Small Cap Equity, International Strategic Equity, Managed Equity Volatility, US Equity Concentrated, US Equity Focus and US Small-Mid Cap Equity Portfolios. |
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Representatives of the Investment Manager discussed with the Board the Investment Manager’s written materials provided in advance of the meetings, including, at the June 23, 2021 meeting, additional information requested by the Independent Directors at the May 26, 2021 meeting.
Services Provided
The Investment Manager’s materials addressed, among other matters, the nature, extent and quality of services that the Investment Manager provides the Fund, including a discussion of the Investment Manager and its clients (of which the Lazard Funds complex of 35 active funds comprised approximately $26 billion of the approximately $265 billion of total assets under the management of the Investment Manager and its global affiliates as of March 31, 2021).
The Board considered the various services provided by the Investment Manager including the Investment Manager’s research, portfolio management and trading capabilities and oversight of day-to-day operations, including supervision of fund accounting and administration-related services and assistance in meeting legal and regulatory requirements, as well as regular reporting to, and support of, the Board. The Investment Manager’s representatives stated that the Investment Manager believes that the Fund and its shareholders continue to be able to obtain significant benefits as a result of the resources and support of the Investment Manager’s global research, portfolio management, trading, operations, risk management, technology and legal and compliance infrastructure. The Board also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience; the Fund’s distribution channels and the relationships with various intermediaries; marketing and shareholder servicing activities on behalf of the Portfolios; and Portfolio asset flows and the growth or decline in asset levels. The Board accepted the assertion of representatives of the Investment Manager that the Fund benefits from the services and infrastructure provided by the Investment Manager and that such services and infrastructure are greater than those typically provided to a $26 billion fund complex not managed by a large, global firm such as the Investment Manager.
Semi-Annual Report 285
Comparative Fee, Expense Ratio and Performance Information
Strategic Insight Advisory Fee and Expense Ratio Comparisons. The Board reviewed, for each Portfolio, information prepared by Strategic Insight, an independent provider of investment company data, including, among other information, each Portfolio’s contractual advisory fee (i.e., without giving effect to any fee waivers) and net expense ratio (i.e., after giving effect to the Portfolio’s expense limitation agreed to by the Investment Manager) to those of:
• | a group of funds not advised by the Investment Manager selected by Strategic Insight as comparable, for expense comparison purposes, to the Portfolio in terms of relevant criteria as appropriate (the “Expense Peer Group”2); and |
• | the funds within the broad category of funds to which the Portfolio has been assigned by Morningstar, Inc., an independent third party service that ranks and rates funds (“Morningstar”), with certain exclusions as specified by Strategic Insight (the “Expense Category”). |
Representatives of the Investment Manager discussed the results of the Strategic Insight advisory fee and net expense ratio comparisons with the Board. For the Emerging Markets Strategic Equity Portfolio, the Investment Manager proposed to lower the current expense limitation by 0.05%. After giving effect to the proposed expense limitation reductions, the results of the Strategic Insight comparisons showed that the advisory fees and net expense ratios of the Portfolios were generally competitive within each Portfolio’s respective Expense Peer Group. The Board considered the comparisons, additional perspectives in information prepared by, and in discussions with, representatives of the Investment Manager and that the Investment Manager continues to voluntarily enter into expense limitation agreements for all of the Portfolios, pursuant to
2 | The Strategic Insight materials outlined the process for constructing the Expense Peer Groups, as well the Expense Categories, Performance Peer Groups and Performance Categories (all as defined herein). Representatives of the Investment Manager and independent legal counsel had previously discussed with the Board in further detail the methodologies used by Strategic Insight in constructing the Expense Peer Groups, Expense Categories, Performance Peer Groups and Performance Categories, including how the methodologies could affect the results of the comparisons. |
286 Semi-Annual Report
which the Investment Manager was currently waiving advisory fees and/or reimbursing expenses for certain Portfolios.
Other Accounts Advisory Fee Comparisons. The Board also considered the actual advisory fees paid to the Investment Manager by other accounts of the Investment Manager that are comparable to each Portfolio in terms of investment objectives, strategies and policies, if any (including other investment companies and other pooled investment vehicles, “Other Accounts”). Representatives of the Investment Manager discussed the nature of the Other Accounts and the significant differences in services provided by the Investment Manager to the different types of Other Accounts as compared to the services provided to the Portfolios. The Board considered the relevance of the fee information provided for Other Accounts, in light of the Investment Manager’s discussion of the significant differences in services provided, to evaluate the advisory fees of the relevant Portfolios.
Strategic Insight Performance Comparisons. The Board reviewed information prepared by Strategic Insight including, among other information, each Portfolio’s performance for the one-, three-, five- and ten-year periods ended March 31, 2021, as applicable, compared to performance for the same time periods of:
• | a group of funds not advised by the Investment Manager selected by Strategic Insight as comparable, for performance comparison purposes, to the Portfolio in terms of relevant criteria as appropriate (the “Performance Peer Group”); |
• | the funds within the broad category of funds to which the Portfolio has been assigned by Morningstar (the “Performance Category”); and |
• | the Portfolio’s benchmark index. |
When evaluating the performance of each Portfolio, the Board considered Strategic Insight’s performance analysis along with other information provided by the Investment Manager, including additional information regarding performance expectations, as well as additional perspectives in information prepared by, and in
Semi-Annual Report 287
discussions with, representatives of the Investment Manager. The Board also received and would continue to receive regular updates and/or additional information from the Investment Manager in respect of Portfolios with relative underperformance or Portfolios which otherwise are not performing in accordance with expectations, as well as any other Portfolios for which the Board requested additional information.
Investment Manager Profitability and Economies of Scale
The Board reviewed information prepared by the Investment Manager for each Portfolio concerning the estimated profitability percentage of the Management Agreement to the Investment Manager and its affiliates for the calendar year ended December 31, 2020 and the Investment Manager’s cost allocation methodology to compute an estimate of each Portfolio’s costs to the Investment Manager. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage practices and the Portfolios’ brokerage allocation, commission payments and soft dollar commissions and benefits. The Investment Manager’s representatives stated that neither the Investment Manager nor its affiliates receive any other significant benefits from the Investment Manager acting as investment manager to the Portfolios. The representatives of the Investment Manager reminded the Board that the Investment Manager is continuing to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Fund does not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolios’ Open Shares.
The profitability percentages were within ranges determined by relevant court cases not to be so disproportionately large that they bore no reasonable relationship to the services rendered. The Board (1) considered the Investment Manager’s estimated profitability percentage with respect to each Portfolio as part of their evaluation of the Portfolio’s fee under the Management Agreement, considered in relation to the mix of services provided by the
288 Semi-Annual Report
Investment Manager (including the nature, extent and quality of such services), and (2) evaluated the profitability percentage in light of the relevant circumstances for each Portfolio. Representatives of the Investment Manager and the Board discussed ways economies of scale could be realized and how they could be shared, including the Investment Manager’s reinvestment of profits back into its business, waiving or reducing Portfolio management fees and/or reimbursing expenses, adding discounts to a Portfolio’s management fee schedule as a Portfolio’s assets increase or by instituting management fees at inception that account for future scale. For most of the Portfolios, it was noted that, since each of those Portfolios had (1) generally stable or decreased assets from the end of calendar year 2019 to the end of calendar year 2020, and/or (2) not reached a significant size, the potential that the Investment Manager may have realized any material economies of scale was reduced.
Conclusions and Determinations3
At the conclusion of these discussions, the Board expressed the opinion that it had been furnished with such information as may reasonably be necessary to make an informed business decision with respect to evaluation of the renewal of the Management Agreement. Based on its discussions and considerations as described above, with the assistance of independent legal counsel and in the exercise of its business judgment, the Board made the following conclusions and determinations.
• | The Board concluded that the nature, extent and quality of the services provided by the Investment Manager are adequate and appropriate, noting the benefits of the significant services and infrastructure associated with an approximately $265 billion global asset management business. |
• | The Board concluded that each Portfolio’s fee paid to the Investment Manager was appropriate under the circumstances and in light of the factors and the totality of the services provided. |
3 | At the June 23, 2021 Board meeting, the Board approved liquidation of the International Equity Concentrated Portfolio on or about September 2, 2021, but also approved continuation of the Management Agreement with respect to the Portfolio, which otherwise expire on June 30, 2021, prior to the anticipated liquidation date. |
Semi-Annual Report 289
• | The Board, after considering the information provided and the totality of the relevant circumstances for each Portfolio, concluded that the investment performance of each Portfolio was acceptable or that, for any Portfolios that were not performing in accordance with expectations, the Board accepted that the Investment Manager was taking steps intended to improve performance and the Board would continue to monitor performance. |
• | The Board recognized that economies of scale may be realized, particularly as the assets of the Portfolios increase and determined that it would continue to consider potential material economies of scale. |
In evaluating the Management Agreement, the Board relied on the information described above, in addition to information provided by the Investment Manager throughout the year relating to the operations of the Fund and the investment management and other services provided under the Management Agreement, including information on the investment performance of the Portfolios in comparison to similar mutual funds and benchmark performance indices over various time periods, as well as information regarding the expected pattern of performance for the Portfolios in different market conditions; general market outlook as applicable to the Portfolios; and compliance reports. The Board also relied on its previous knowledge, gained through meetings and other interactions with the Investment Manager, of the Investment Manager and the services provided to the Fund by the Investment Manager. The Board considered these conclusions and determinations in their totality and determined to approve the Fund’s Management Agreement for each Portfolio. In deciding whether to vote to approve the Management Agreement for each Portfolio, each Director may have accorded different weights to different factors so that each Director may have had a different basis for his or her decision.
Statement Regarding Liquidity Risk Management Program
The Fund has adopted a liquidity risk management program (the “LRMP”) pursuant to the requirements of Rule 22e-4 under the 1940 Act, which requires registered open-end funds (other than
290 Semi-Annual Report
money market funds) to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk. The rule is designed to promote effective liquidity risk management and reduce liquidity risk—i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund.
The Board approved the Investment Manager to administer the LRMP (the “Program Administrator”). As Program Administrator, the Investment Manager delegates the day-to-day activities required by the LRMP to a Valuation and Liquidity Committee comprised of various Fund officers and senior personnel of the Investment Manager. In addition, the Fund has contracted with a third party liquidity assessment vendor to support the classification of Portfolio investments.
Pursuant to the requirements of Rule 22e-4, the Board must review, no less frequently than annually, a written report prepared by the Program Administrator that, among other things, addresses the operation of the LRMP and assesses its adequacy and effectiveness of implementation and any material changes to the LRMP. The Board received a written report in June 2021 (the “Annual Report”). The Annual Report included, among other things, a statement that the Investment Manager, as the Program Administrator, acting primarily through the Valuation and Liquidity Committee, has reviewed the operation of the LRMP and believes that the LRMP is reasonably designed to assess and manage the Portfolios’ liquidity risk and is adequate and effective in its implementation. There were no material compliance matters relating to compliance with Rule 22e-4 identified in the Annual Report.
Semi-Annual Report 291
The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
www.lazardassetmanagement.com
Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Custodian
State Street Bank and Trust Company
One Iron Street
Boston, Massachusetts 02210-1641
Transfer Agent and Dividend Disbursing Agent
DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169-0953
Telephone: 617-483-7000
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015
Legal Counsel
Proskauer Rose LLP
Eleven Times Square
New York, New York 10036-8299
www.proskauer.com
Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com. LZDPS021 |
Lazard Funds
Semi-Annual Report
June 30, 2021
Fixed Income Funds
Lazard Emerging Markets Debt Portfolio
Lazard Global Fixed Income Portfolio
Lazard US Corporate Income Portfolio
Lazard US Short Duration Fixed Income Portfolio
The Lazard Funds, Inc. Table of Contents
Please consider a Portfolio’s investment objective, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. (the “Fund”), you may obtain a prospectus or a Portfolio’s summary prospectus by calling 800-823-6300, or online, at www.lazardassetmanagement.com. Read the prospectus or the Portfolio’s summary prospectus carefully before you invest. The prospectus and the Portfolio’s summary prospectus contain the investment objective, risks, charges, expenses and other information about the Portfolio, which are not detailed in this report.
Distributed by Lazard Asset Management Securities LLC.
Semi-Annual Report 1
The Lazard Funds, Inc. A Message from Lazard (unaudited)
Dear Shareholder,
Progress in the long battle against COVID-19 brightened the economic outlook in many parts of the world in the first six months of 2021, and that was reflected in the global equity markets. The MSCI World Index returned a healthy 13% as vaccination rates rose, many economies reopened, and recovery took hold, especially in the United States where vaccination accelerated dramatically.
Yet, this ride up was far from smooth. During the first half of 2021, investor sentiment seemed to alternate, often from day-to-day, between growing optimism over the economic rebound and worry over the downside risks that could derail the recovery, from uneven vaccine distribution to outbreaks of the virus in Europe and Asia and the emergence of more virus strains.
Increasingly, investors also became concerned with an “upside risk” that could result from faster economic growth: inflation. Amid supply-chain bottlenecks, surging commodity prices, and sharp increases in China’s producer prices, inflation moved front and center in the second quarter. The key concern was that the huge fiscal stimulus in the United States, in particular, could drive inflation higher, forcing the Federal Reserve (the “Fed”) and other central banks to retreat from their easy monetary policy before economic recovery is fully realized. In fact, the US Consumer Price Index (CPI) to date in 2021 jumped to an annualized 5% in May—the highest rate in more than a decade and well above the Fed’s 2% target for inflation.
However, the Fed has maintained that recent higher inflation is temporary and due to the global economy restarting. At their meeting in June, the Federal Open Market Committee moved up its own median estimate for the timing of their next interest rate increase to 2023 from 2024, a signal that the economy is recovering more quickly than the central bank had expected, but also that it is not currently overheating, which would warrant action sooner. In sum, the Fed seemed to relieve many investors’ concerns over inflation, for now.
2 Semi-Annual Report
In this tug-of-war market environment, the equity bulls won out as many companies reported higher earnings, brighter outlooks, or both. Although stock markets in both developed and emerging markets generally gained, developed markets generally performed better than emerging markets as vaccination rates and economic reopening advanced more quickly. In the United States, the S&P 500 Index hit a series of new highs thanks in part to exceptionally strong corporate earnings.
We remain optimistic for the second half of 2021. The Fed expects US real gross domestic product (“GDP”) growth to reach a staggering 7% for the year (after nearly –3.5% in 2020), and vaccination rates should continue to climb, helping to boost growth, particularly in the emerging markets. Still, like the past six months, the journey is likely to be bumpy. Inflation, economic data, and the path of recovery itself may seem volatile at times. As of the end of the semi-annual period, a highly infectious COVID-19 strain has become dominant around the world, a sobering reminder that we are still fighting the pandemic.
In the push-pull of the financial markets, we believe fundamental analysis and stock selection are crucial to staying on track. We value your continued confidence in us, and, as always, we will strive for long-term patterns of performance that are consistent with your expectations.
Sincerely,
Lazard Asset Management LLC
Semi-Annual Report 3
The Lazard Funds, Inc. Performance Overviews (unaudited)
Lazard Emerging Markets Debt Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Debt Portfolio, the JPMorgan EMBI Global Diversified® Index, the JPMorgan GBI-EM Global Diversified® Index and the Global Diversified Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One | Five | Ten | Since | |||||||||||||
Year | Years | Years | Inception | † | ||||||||||||
Institutional Shares** | 8.81% | 3.51% | 2.44% | 2.80% | ||||||||||||
Open Shares** | 8.58% | 3.31% | 2.18% | 2.54% | ||||||||||||
R6 Shares** | 8.78% | N/A | N/A | 3.55% | ||||||||||||
JPMorgan EMBI Global Diversified Index | 7.53% | 4.86% | 5.65% | 5.97% | ||||||||||||
(Institutional and Open Shares) 4.58% (R6 Shares) | ||||||||||||||||
JPMorgan GBI-EM Global Diversified Index | 6.57% | 3.25% | 0.47% | 1.11% | ||||||||||||
(Institutional and Open Shares) 3.37% (R6 Shares) | ||||||||||||||||
Global Diversified Index | 7.07% | 4.11% | 3.10% | 3.59% | ||||||||||||
(Institutional and Open Shares) 4.03% (R6 Shares) |
† | The inception date for the Institutional and Open Shares was February 28, 2011 and for the R6 Shares was July 28, 2016. |
4 Semi-Annual Report
Lazard Global Fixed Income Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Fixed Income Portfolio and the Bloomberg Barclays Global Aggregate® Index*
Average Annual Total Returns* | ||||||||||||
Periods Ended June 30, 2021 | ||||||||||||
One | Five | Since | ||||||||||
Year | Years | Inception | † | |||||||||
Institutional Shares** | 1.93% | 2.28% | 1.37% | |||||||||
Open Shares** | 1.61% | 1.99% | 1.08% | |||||||||
Bloomberg Barclays Global Aggregate Index | 2.63% | 2.34% | 1.99% |
† | The inception date for the Portfolio was March 30, 2012. |
Semi-Annual Report 5
Lazard US Corporate Income Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Corporate Income Portfolio and Cash Pay Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One | Five | Ten | Since | |||||||||||||
Year | Years | Years | Inception | † | ||||||||||||
Institutional Shares** | 9.95% | 5.21% | 5.36% | 4.45% | ||||||||||||
Open Shares** | 9.76% | 4.94% | 5.05% | 3.97% | ||||||||||||
R6 Shares** | 9.85% | N/A | N/A | 4.52% | ||||||||||||
Cash Pay Index | 13.08% | 6.98% | 6.48% | 6.49% | ||||||||||||
(Institutional Shares) 6.45% (Open Shares) 6.57% (R6 Shares) |
† | The inception date for the Institutional Shares was January 2, 1998, for the Open Shares was February 24, 1998 and for the R6 Shares was November 3, 2016. |
6 Semi-Annual Report
Lazard US Short Duration Fixed Income Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Short Duration Fixed Income Portfolio and the ICE BofAML 1-3 Year US Treasury® Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One | Five | Since | ||||||||||
Year | Years | Inception | † | |||||||||
Institutional Shares** | -0.04% | 1.44% | 1.26% | |||||||||
Open Shares** | -0.28% | 1.12% | 1.07% | |||||||||
ICE BofAML 1-3 Year US Treasury Index | 0.07% | 1.60% | 1.20% |
† | The inception date for the Portfolio was February 28, 2011. |
Notes to Performance Overviews:
* | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s administrator (“State Street”), or DST Asset Manager Solutions, Inc., the Fund’s transfer agent and dividend disbursing agent (“DST”); without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
Performance results do not include adjustments made for financial reporting purposes in accordance with US Generally Accepted Accounting Principles (“GAAP”), if any, and also exclude one-time adjustments related to reimbursed custodian out-of-pocket expenses (Note 3 in the Notes to Financial Statements) for The Emerging Markets Debt Portfolio and settlement proceeds received from a class action lawsuit by The US Corporate Income Portfolio which impacted the total return of R6 Shares but did not impact that of Institutional or Open; amounts may differ from amounts reported in the financial highlights. | |
The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the 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 graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares. |
Semi-Annual Report 7
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 JPMorgan Emerging Markets Bond index (“EMBI”) Global Diversified Index is an unmanaged index of debt instruments of emerging countries. The JPMorgan Government Bond Index-Emerging Markets (“GBI-EM”) Global Diversified Index is a comprehensive Emerging Markets index that consists of regularly traded, liquid, fixed-rate, domestic currency government bonds to which international investors can gain exposure. These indices limit the weights of those index countries with larger debt stocks by only including specified portions of these countries’ eligible current face amounts of debt outstanding. The same countries are covered in both indices. | |
The Global Diversified Index is an unmanaged index created by the Investment Manager and is a 50/50 blend of the JPMorgan EMBI Global Diversified Index and the JPMorgan GBI-EM Global Diversified Index. | |
The government-related debt, corporate debt, and securitized debt provides a broad-based measure of global investment-grade fixed-income debt markets, including government-related debt, corporate debt and securitized debt. | |
The Cash Pay Index is The ICE Bank of America Merrill Lynch High Yield (“BofAML”) BB-B US Cash Pay Non-Distressed High Yield® Index. It is constructed to mirror the BB-B non-distressed sector of the public high yield corporate debt market and is a subset of the ICE BofAML High Yield Cash Pay® Index. | |
The ICE BofAML 1-3 Year US Treasury Index tracks the performance of the direct sovereign debt of the US government having a maturity of at least one year and less than three years. | |
** | The performance of Institutional Shares, Open Shares and R6 Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes. |
8 Semi-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 January 1, 2021 through June 30, 2021 and held for the entire period.
Actual Expenses
For each share class of the Portfolios, the first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each share class of the Portfolios, the second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
Semi-Annual Report 9
Expenses | Annualized | ||||
Beginning | Ending | Paid During | Expense Ratio | ||
Account | Account | Period* | During Period | ||
Value | Value | 1/1/21 - | 1/1/21- | ||
Portfolio | 1/1/21 | 6/30/21 | 6/30/21 | 6/30/21 | |
Emerging Markets Debt | |||||
Institutional Shares | |||||
Actual | $1,000.00 | $ | 983.70 | $4.18 | 0.85% |
Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.58 | $4.26 | 0.85% |
Open Shares | |||||
Actual | $1,000.00 | $ | 982.50 | $5.16 | 1.05% |
Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,019.59 | $5.26 | 1.05% |
R6 Shares | |||||
Actual | $1,000.00 | $ | 984.60 | $3.94 | 0.80% |
Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.83 | $4.01 | 0.80% |
Global Fixed Income | |||||
Institutional Shares | |||||
Actual | $1,000.00 | $ | 958.60 | $3.40 | 0.70% |
Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.32 | $3.51 | 0.70% |
Open Shares | |||||
Actual | $1,000.00 | $ | 956.80 | $4.61 | 0.95% |
Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.08 | $4.76 | 0.95% |
US Corporate Income | |||||
Institutional Shares | |||||
Actual | $1,000.00 | $ | 1,018.60 | $2.75 | 0.55% |
Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,022.07 | $2.76 | 0.55% |
Open Shares | |||||
Actual | $1,000.00 | $ | 1,017.40 | $4.00 | 0.80% |
Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,020.83 | $4.01 | 0.80% |
R6 Shares | |||||
Actual | $1,000.00 | $ | 1,018.50 | $2.75 | 0.55% |
Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,022.07 | $2.76 | 0.55% |
10 Semi-Annual Report
Expenses | Annualized | ||||
Beginning | Ending | Paid During | Expense Ratio | ||
Account | Account | Period* | During Period | ||
Value | Value | 1/1/21 - | 1/1/21- | ||
Portfolio | 1/1/21 | 6/30/21 | 6/30/21 | 6/30/21 | |
US Short Duration Fixed Income | |||||
Institutional Shares | |||||
Actual | $1,000.00 | $ | 999.08 | $1.98 | 0.40% |
Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,022.81 | $2.01 | 0.40% |
Open Shares | |||||
Actual | $1,000.00 | $ | 997.90 | $3.22 | 0.65% |
Hypothetical (5% Return Before Expenses) | $1,000.00 | $ | 1,021.57 | $3.26 | 0.65% |
* | 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 181/365 (to reflect one-half year period). |
Semi-Annual Report 11
The Lazard Funds, Inc. Portfolio Holdings Presented by
Asset Class/Credit Rating and Region June 30, 2021 (unaudited)
Lazard | Lazard US | Lazard US | |||||||||||
Global Fixed | Corporate | Short Duration | |||||||||||
Income | Income | Fixed Income | |||||||||||
Asset Class/S&P Credit Rating* | Portfolio | Portfolio | Portfolio | ||||||||||
Fixed Income | |||||||||||||
AAA | 23.6 | % | — | % | 85.0 | % | |||||||
AA+ | 4.8 | — | — | ||||||||||
AA | 0.5 | — | — | ||||||||||
AA- | 6.0 | — | — | ||||||||||
A+ | 8.8 | — | — | ||||||||||
A | 7.4 | — | — | ||||||||||
A- | 7.5 | — | 3.3 | ||||||||||
BBB+ | 10.9 | — | 10.6 | ||||||||||
BBB | 5.2 | 1.3 | — | ||||||||||
BBB- | 3.5 | 7.3 | — | ||||||||||
BB+ | 2.8 | 13.1 | — | ||||||||||
BB | 2.0 | 19.0 | — | ||||||||||
BB- | 0.1 | 19.5 | — | ||||||||||
B+ | — | 10.7 | — | ||||||||||
B- | — | 7.5 | — | ||||||||||
B- | — | 3.1 | — | ||||||||||
CCC+ | — | 0.9 | — | ||||||||||
CCC- | — | 0.2 | — | ||||||||||
CC | — | 1.7 | — | ||||||||||
Not Applicable | 15.8 | 9.6 | 0.7 | ||||||||||
Short- Term Investments | 1.1 | 6.1 | 0.4 | ||||||||||
Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | |||||||
Lazard | |||||||||||||
Emerging | |||||||||||||
Markets Debt | |||||||||||||
Asset Class/Region* | Portfolio | ||||||||||||
Fixed Income | |||||||||||||
Africa | 15.9 | % | |||||||||||
Asia | 29.9 | ||||||||||||
Europe | 19.3 | ||||||||||||
North America | 13.1 | ||||||||||||
South America | 15.7 | ||||||||||||
Short- Term Investments | 6.1 | ||||||||||||
Total Investments | 100.0 | % |
* | Represents percentage of total investments |
12 Semi-Annual Report
The Lazard Funds, Inc. Portfolios of Investments
June 30, 2021 (unaudited)
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 13
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
Peru | 0.5% | ||||||||||
Banco de Credito del Peru, 3.125% (CMT 5 Year + 3.000%), 07/01/30 (#), (§) | USD | 100 | $ | 98,965 | ||||||
Total Corporate Bonds (Cost $1,355,532) | 1,376,806 | |||||||||
Foreign Government Obligations | 86.0% | ||||||||||
Argentina | 0.6% | ||||||||||
Republic of Argentina: | ||||||||||
1.000%, 07/09/29 | USD | 33 | 12,632 | |||||||
0.125%, 07/09/30 (Ø) | USD | 109 | 39,176 | |||||||
0.125%, 07/09/35 (Ø) | USD | 100 | 31,612 | |||||||
0.125%, 01/09/38 (Ø) | USD | 96 | 36,132 | |||||||
119,552 | ||||||||||
Azerbaijan | 1.0% | ||||||||||
Republic of Azerbaijan, 3.500%, 09/01/32 | USD | 200 | 207,287 | |||||||
Bahamas | 0.5% | ||||||||||
Commonwealth of Bahamas, 8.950%, 10/15/32 | USD | 100 | 112,688 | |||||||
Bahrain | 1.2% | ||||||||||
Bahrain Government International Bonds, 6.750%, 09/20/29 | USD | 230 | 252,181 | |||||||
Barbados | 0.0% | ||||||||||
Barbados Government International Bonds, 6.500%, 10/01/29 (#) | USD | 10 | 10,064 |
The accompanying notes are an integral part of these financial statements.
14 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
Belarus | 0.9% | ||||||||||
Republic of Belarus, 5.875%, 02/24/26 | USD | 200 | $ | 184,500 | ||||||
Brazil | 5.6% | ||||||||||
Brazil Letras do Tesouro Nacional, 0.000%, 01/01/24 | BRL | 2,600 | 432,240 | |||||||
Brazil NTN-F: | ||||||||||
10.000%, 01/01/25 | BRL | 690 | 146,400 | |||||||
10.000%, 01/01/27 | BRL | 1,170 | 249,347 | |||||||
Federal Republic of Brazil: | ||||||||||
2.875%, 06/06/25 | USD | 25 | 25,700 | |||||||
4.500%, 05/30/29 | USD | 95 | 101,609 | |||||||
3.875%, 06/12/30 | USD | 100 | 100,988 | |||||||
5.000%, 01/27/45 | USD | 25 | 25,348 | |||||||
5.625%, 02/21/47 | USD | 40 | 43,570 | |||||||
4.750%, 01/14/50 | USD | 65 | 63,143 | |||||||
1,188,345 | ||||||||||
Chile | 0.6% | ||||||||||
Bonos de la Tesoreria de la Republica en pesos: | ||||||||||
2.300%, 10/01/28 | CLP | 25,000 | 29,045 | |||||||
5.000%, 10/01/28 | CLP | 45,000 | 62,945 | |||||||
2.800%, 10/01/33 | CLP | 25,000 | 27,370 | |||||||
6.000%, 01/01/43 | CLP | 10,000 | 15,059 | |||||||
134,419 | ||||||||||
China | 5.9% | ||||||||||
China Development Bank: | ||||||||||
1.860%, 04/09/23 | CNY | 1,780 | 270,636 | |||||||
3.500%, 08/13/26 | CNY | 2,310 | 360,106 | |||||||
3.450%, 09/20/29 | CNY | 390 | 60,003 | |||||||
China Government Bonds: | ||||||||||
3.120%, 12/05/26 | CNY | 2,470 | 384,820 | |||||||
2.680%, 05/21/30 | CNY | 810 | 120,502 | |||||||
3.810%, 09/14/50 | CNY | 320 | 50,631 | |||||||
1,246,698 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 15
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
Colombia | 3.8% | ||||||||||
Colombia Government International Bonds: | ||||||||||
3.000%, 01/30/30 | USD | 50 | $ | 48,869 | ||||||
5.200%, 05/15/49 | USD | 40 | 43,745 | |||||||
Colombian Titulos De Tesoreria: | ||||||||||
6.250%, 11/26/25 | COP | 301,300 | 81,402 | |||||||
7.500%, 08/26/26 | COP | 757,000 | 213,102 | |||||||
5.750%, 11/03/27 | COP | 375,000 | 95,538 | |||||||
6.000%, 04/28/28 | COP | 217,800 | 55,697 | |||||||
7.000%, 06/30/32 | COP | 240,000 | 62,160 | |||||||
Republic of Colombia: | ||||||||||
4.500%, 01/28/26 | USD | 65 | 70,943 | |||||||
3.875%, 04/25/27 | USD | 65 | 69,054 | |||||||
4.500%, 03/15/29 | USD | 30 | 32,649 | |||||||
3.125%, 04/15/31 | USD | 30 | 29,303 | |||||||
802,462 | ||||||||||
Costa Rica | 0.4% | ||||||||||
Republic of Costa Rica: | ||||||||||
4.250%, 01/26/23 | USD | 25 | 25,348 | |||||||
4.375%, 04/30/25 | USD | 25 | 25,614 | |||||||
7.158%, 03/12/45 | USD | 40 | 41,658 | |||||||
92,620 | ||||||||||
Czech Republic | 0.7% | ||||||||||
Czech Republic: | ||||||||||
2.500%, 08/25/28 | CZK | 810 | 39,453 | |||||||
1.200%, 03/13/31 | CZK | 1,890 | 83,004 | |||||||
4.200%, 12/04/36 | CZK | 600 | 36,352 | |||||||
158,809 | ||||||||||
Dominican Republic | 1.3% | ||||||||||
Dominican Republic: | ||||||||||
5.500%, 01/27/25 | USD | 40 | 43,995 | |||||||
5.950%, 01/25/27 | USD | 10 | 11,250 | |||||||
7.450%, 04/30/44 | USD | 15 | 18,054 | |||||||
6.400%, 06/05/49 | USD | 25 | 26,911 |
The accompanying notes are an integral part of these financial statements.
16 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
Dominican Republic International Bonds, 4.500%, 01/30/30 (#) | USD | 170 | $ | 173,485 | ||||||
273,695 | ||||||||||
Ecuador | 0.8% | ||||||||||
Ecuador Government International Bonds: | ||||||||||
0.000%, 07/31/30 | USD | 11 | 6,074 | |||||||
0.500%, 07/31/30 (Ø) | USD | 60 | 51,450 | |||||||
0.500%, 07/31/35 (Ø) | USD | 120 | 82,200 | |||||||
0.500%, 07/31/40 (Ø) | USD | 40 | 24,750 | |||||||
164,474 | ||||||||||
Egypt | 2.6% | ||||||||||
Arab Republic of Egypt, 5.577%, 02/21/23 | USD | 200 | 209,725 | |||||||
Egypt Government Bonds: | ||||||||||
14.369%, 10/20/25 | EGP | 1,060 | 67,154 | |||||||
14.060%, 01/12/26 | EGP | 1,320 | 80,973 | |||||||
Egypt Government International Bonds, 7.500%, 02/16/61 (#) | USD | 200 | 186,437 | |||||||
544,289 | ||||||||||
El Salvador | 0.9% | ||||||||||
Republic of El Salvador: | ||||||||||
5.875%, 01/30/25 | USD | 25 | 23,063 | |||||||
6.375%, 01/18/27 | USD | 60 | 54,150 | |||||||
7.650%, 06/15/35 | USD | 35 | 31,938 | |||||||
7.625%, 02/01/41 | USD | 15 | 13,275 | |||||||
7.125%, 01/20/50 | USD | 75 | 63,937 | |||||||
186,363 | ||||||||||
Ghana | 1.1% | ||||||||||
Republic of Ghana, 7.625%, 05/16/29 | USD | 225 | 227,503 | |||||||
Guatemala | 0.6% | ||||||||||
Guatemala Government Bonds, 5.375%, 04/24/32 | USD | 10 | 11,533 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 17
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
Republic of Guatemala: | ||||||||||
4.500%, 05/03/26 | USD | 55 | $ | 60,304 | ||||||
4.875%, 02/13/28 | USD | 25 | 28,012 | |||||||
5.375%, 04/24/32 (#) | USD | 10 | 11,533 | |||||||
6.125%, 06/01/50 (#) | USD | 15 | 18,233 | |||||||
129,615 | ||||||||||
Honduras | 0.2% | ||||||||||
Republic of Honduras, 6.250%, 01/19/27 | USD | 35 | 38,124 | |||||||
Hungary | 2.0% | ||||||||||
Hungary: | ||||||||||
5.375%, 03/25/24 | USD | 76 | 85,728 | |||||||
7.625%, 03/29/41 | USD | 18 | 29,540 | |||||||
Hungary Government Bonds: | ||||||||||
2.500%, 10/24/24 | HUF | 29,380 | 101,533 | |||||||
2.750%, 12/22/26 | HUF | 22,210 | 77,312 | |||||||
3.000%, 10/27/27 | HUF | 34,330 | 120,962 | |||||||
415,075 | ||||||||||
Indonesia | 4.4% | ||||||||||
Indonesia Treasury Bonds: | ||||||||||
8.375%, 09/15/26 | IDR | 4,849,000 | 374,711 | |||||||
9.000%, 03/15/29 | IDR | 434,000 | 34,540 | |||||||
8.250%, 05/15/29 | IDR | 1,545,000 | 118,432 | |||||||
7.000%, 09/15/30 | IDR | 1,032,000 | 73,308 | |||||||
6.500%, 02/15/31 | IDR | 770,000 | 52,652 | |||||||
8.750%, 05/15/31 | IDR | 1,150,000 | 90,810 | |||||||
8.375%, 03/15/34 | IDR | 912,000 | 69,344 | |||||||
8.250%, 05/15/36 | IDR | 648,000 | 48,935 | |||||||
8.375%, 04/15/39 | IDR | 920,000 | 70,047 | |||||||
932,779 |
The accompanying notes are an integral part of these financial statements.
18 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
Iraq | 1.0% | ||||||||||
Republic of Iraq, 5.800%, 01/15/28 | USD | 219 | $ | 211,340 | ||||||
Ivory Coast | 1.0% | ||||||||||
Ivory Coast, 6.125%, 06/15/33 | USD | 200 | 211,100 | |||||||
Jamaica | 0.4% | ||||||||||
Government of Jamaica: | ||||||||||
6.750%, 04/28/28 | USD | 25 | 29,247 | |||||||
8.000%, 03/15/39 | USD | 15 | 20,984 | |||||||
7.875%, 07/28/45 | USD | 20 | 27,944 | |||||||
78,175 | ||||||||||
Kazakhstan | 1.4% | ||||||||||
Republic of Kazakhstan, 6.500%, 07/21/45 | USD | 200 | 292,350 | |||||||
Kenya | 1.3% | ||||||||||
Republic of Kenya, 8.000%, 05/22/32 | USD | 250 | 280,750 | |||||||
Lebanon | 0.8% | ||||||||||
Lebanese Republic: | ||||||||||
6.375%, 03/09/20 («) | USD | 97 | 11,931 | |||||||
8.250%, 04/12/21 («) | USD | 170 | 21,016 | |||||||
6.100%, 10/04/22 («) | USD | 201 | 25,037 | |||||||
6.000%, 01/27/23 («) | USD | 191 | 23,791 | |||||||
6.650%, 04/22/24 («) | USD | 87 | 10,701 | |||||||
6.250%, 11/04/24 («) | USD | 116 | 14,268 | |||||||
6.200%, 02/26/25 («) | USD | 37 | 4,505 | |||||||
6.600%, 11/27/26 («) | USD | 104 | 12,792 | |||||||
6.850%, 03/23/27 («) | USD | 114 | 14,057 | |||||||
6.750%, 11/29/27 («) | USD | 41 | 5,056 | |||||||
6.650%, 02/26/30 («) | USD | 99 | 12,332 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 19
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
7.000%, 03/23/32 («) | USD | 49 | $ | 6,042 | ||||||
7.050%, 11/02/35 («) | USD | 60 | 7,399 | |||||||
7.250%, 03/23/37 («) | USD | 44 | 5,701 | |||||||
174,628 | ||||||||||
Malaysia | 3.5% | ||||||||||
Malaysia Government Bonds: | ||||||||||
4.048%, 09/30/21 | MYR | 220 | 53,282 | |||||||
3.620%, 11/30/21 | MYR | 210 | 50,943 | |||||||
3.955%, 09/15/25 | MYR | 610 | 155,034 | |||||||
3.906%, 07/15/26 | MYR | 260 | 66,100 | |||||||
3.899%, 11/16/27 | MYR | 1,080 | 274,128 | |||||||
3.844%, 04/15/33 | MYR | 240 | 58,016 | |||||||
3.828%, 07/05/34 | MYR | 20 | 4,799 | |||||||
4.893%, 06/08/38 | MYR | 330 | 85,756 | |||||||
748,058 | ||||||||||
Mexico | 5.1% | ||||||||||
Mexican Bonos: | ||||||||||
5.750%, 03/05/26 | MXN | 6,280 | 306,770 | |||||||
8.500%, 05/31/29 | MXN | 4,908 | 270,911 | |||||||
10.000%, 11/20/36 | MXN | 1,600 | 100,833 | |||||||
7.750%, 11/13/42 | MXN | 1,840 | 94,612 | |||||||
Mexico Government International Bonds: | ||||||||||
3.900%, 04/27/25 | USD | 45 | 49,804 | |||||||
2.659%, 05/24/31 | USD | 25 | 24,411 | |||||||
United Mexican States: | ||||||||||
4.125%, 01/21/26 | USD | 55 | 62,023 | |||||||
4.500%, 04/22/29 | USD | 45 | 50,887 | |||||||
4.500%, 01/31/50 | USD | 15 | 15,931 | |||||||
5.000%, 04/27/51 | USD | 40 | 45,482 | |||||||
5.750%, 10/12/10 | USD | 44 | 52,464 | |||||||
1,074,128 | ||||||||||
Mongolia | 0.9% | ||||||||||
Mongolia International Bonds: | ||||||||||
5.125%, 12/05/22 | USD | 85 | 88,336 | |||||||
4.450%, 07/07/31 (#) | USD | 95 | 92,744 | |||||||
181,080 |
The accompanying notes are an integral part of these financial statements.
20 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
Nigeria | 1.0% | ||||||||||
Republic of Nigeria, 7.875%, 02/16/32 | USD | 200 | $ | 214,662 | ||||||
Oman | 1.2% | ||||||||||
Oman Government International Bonds, 4.750%, 06/15/26 | USD | 245 | 253,621 | |||||||
Pakistan | 0.9% | ||||||||||
Islamic Republic of Pakistan SR, 6.000%, 04/08/26 (#) | USD | 200 | 201,938 | |||||||
Panama | 1.3% | ||||||||||
Republic of Panama: | ||||||||||
3.875%, 03/17/28 | USD | 75 | 82,467 | |||||||
3.160%, 01/23/30 | USD | 75 | 78,600 | |||||||
4.500%, 04/01/56 | USD | 55 | 62,349 | |||||||
3.870%, 07/23/60 | USD | 60 | 61,174 | |||||||
284,590 | ||||||||||
Paraguay | 0.4% | ||||||||||
Republic of Paraguay: | ||||||||||
5.000%, 04/15/26 | USD | 35 | 39,710 | |||||||
4.700%, 03/27/27 | USD | 35 | 39,578 | |||||||
79,288 | ||||||||||
Peru | 0.8% | ||||||||||
Peruvian Government International Bonds, | ||||||||||
5.940%, 02/12/29 | PEN | 80 | 22,718 | |||||||
Republic of Peru: | ||||||||||
6.950%, 08/12/31 | PEN | 285 | 83,029 | |||||||
6.900%, 08/12/37 | PEN | 170 | 46,761 | |||||||
5.350%, 08/12/40 | PEN | 55 | 12,656 | |||||||
165,164 | ||||||||||
Philippines | 0.5% | ||||||||||
Philippine Government International Bond, 3.200%, 07/06/46 | USD | 110 | 110,103 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 21
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
Poland | 0.6% | ||||||||||
Republic of Poland Government Bonds, 2.750%, 04/25/28 | PLN | 440 | $ | 125,141 | ||||||
Qatar | 1.4% | ||||||||||
Qatar Government International Bond, 6.400%, 01/20/40 | USD | 200 | 292,600 | |||||||
Romania | 2.7% | ||||||||||
Romanian Government Bonds: | ||||||||||
4.250%, 06/28/23 | RON | 710 | 177,319 | |||||||
4.750%, 02/24/25 | RON | 320 | 82,623 | |||||||
4.850%, 04/22/26 | RON | 130 | 34,165 | |||||||
5.800%, 07/26/27 | RON | 210 | 58,474 | |||||||
4.150%, 01/26/28 | RON | 180 | 46,070 | |||||||
Romanian Government International Bonds: | ||||||||||
4.375%, 08/22/23 | USD | 48 | 51,849 | |||||||
3.000%, 02/14/31 | USD | 46 | 47,705 | |||||||
4.000%, 02/14/51 (#) | USD | 62 | 65,228 | |||||||
563,433 | ||||||||||
Russia | 5.3% | ||||||||||
Russia Government Bonds - OFZ: | ||||||||||
7.950%, 10/07/26 | RUB | 21,600 | 308,692 | |||||||
7.050%, 01/19/28 | RUB | 7,443 | 102,328 | |||||||
6.900%, 05/23/29 | RUB | 6,980 | 95,018 | |||||||
7.650%, 04/10/30 | RUB | 4,670 | 66,372 | |||||||
8.500%, 09/17/31 | RUB | 6,110 | 92,050 | |||||||
Russian Foreign Bond - Eurobond, 4.375%, 03/21/29 | USD | 400 | 450,600 | |||||||
1,115,060 | ||||||||||
Saudi Arabia | 1.9% | ||||||||||
Saudi Government International Bond MTN, 2.250%, 02/02/33 | USD | 415 | 403,847 |
The accompanying notes are an integral part of these financial statements.
22 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
South Africa | 8.1% | ||||||||||
Republic of South Africa: | ||||||||||
10.500%, 12/21/26 | ZAR | 1,720 | $ | 136,829 | ||||||
4.850%, 09/30/29 | USD | 10 | 10,608 | |||||||
8.000%, 01/31/30 | ZAR | 7,760 | 515,418 | |||||||
5.875%, 06/22/30 | USD | 75 | 85,561 | |||||||
8.250%, 03/31/32 | ZAR | 1,740 | 111,173 | |||||||
8.500%, 01/31/37 | ZAR | 8,020 | 482,995 | |||||||
5.650%, 09/27/47 | USD | 30 | 30,634 | |||||||
8.750%, 02/28/48 | ZAR | 1,445 | 85,542 | |||||||
6.300%, 06/22/48 | USD | 90 | 98,398 | |||||||
5.750%, 09/30/49 | USD | 35 | 35,838 | |||||||
Republic of South Africa Government Bonds, 8.875%, 02/28/35 | ZAR | 1,020 | 64,820 | |||||||
Republic of South Africa Government International Bonds, 4.850%, 09/27/27 | USD | 60 | 64,474 | |||||||
1,722,290 | ||||||||||
Sri Lanka | 0.5% | ||||||||||
Republic of Sri Lanka: | ||||||||||
5.750%, 04/18/23 | USD | 35 | 26,049 | |||||||
6.350%, 06/28/24 | USD | 40 | 27,345 | |||||||
6.125%, 06/03/25 | USD | 10 | 6,683 | |||||||
6.825%, 07/18/26 | USD | 5 | 3,220 | |||||||
6.200%, 05/11/27 | USD | 50 | 30,931 | |||||||
6.750%, 04/18/28 | USD | 35 | 21,892 | |||||||
116,120 | ||||||||||
Suriname | 0.0% | ||||||||||
Republic of Suriname, 9.250%, 10/26/26 | USD | 10 | 6,186 | |||||||
Thailand | 1.8% | ||||||||||
Thailand Government Bonds: | ||||||||||
3.650%, 06/20/31 | THB | 2,420 | 87,708 | |||||||
3.775%, 06/25/32 | THB | 2,590 | 95,138 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 23
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
3.400%, 06/17/36 | THB | 3,390 | $ | 120,400 | ||||||
3.300%, 06/17/38 | THB | 2,190 | 76,615 | |||||||
379,861 | ||||||||||
Turkey | 2.2% | ||||||||||
Republic of Turkey: | ||||||||||
6.250%, 09/26/22 | USD | 55 | 57,200 | |||||||
7.375%, 02/05/25 | USD | 95 | 102,677 | |||||||
4.875%, 10/09/26 | USD | 55 | 53,756 | |||||||
6.000%, 03/25/27 | USD | 60 | 61,155 | |||||||
6.000%, 01/14/41 | USD | 15 | 13,526 | |||||||
6.625%, 02/17/45 | USD | 30 | 28,449 | |||||||
5.750%, 05/11/47 | USD | 80 | 68,390 | |||||||
Turkey Government Bonds: | ||||||||||
8.000%, 03/12/25 | TRY | 600 | 51,512 | |||||||
10.500%, 08/11/27 | TRY | 410 | 35,082 | |||||||
471,747 | ||||||||||
Ukraine | 2.7% | ||||||||||
Government of Ukraine, 15.840%, 02/26/25 | UAH | 1,330 | 53,187 | |||||||
Ukraine Government Bonds: | ||||||||||
7.750%, 09/01/21 | USD | 210 | 212,008 | |||||||
9.750%, 11/01/28 | USD | 260 | 309,611 | |||||||
574,806 | ||||||||||
Uruguay | 1.1% | ||||||||||
Republica Orient Uruguay: | ||||||||||
4.375%, 10/27/27 | USD | 30 | 34,478 | |||||||
4.375%, 01/23/31 | USD | 60 | 69,892 | |||||||
5.100%, 06/18/50 | USD | 40 | 52,370 | |||||||
4.975%, 04/20/55 | USD | 60 | 77,467 | |||||||
234,207 | ||||||||||
Venezuela | 0.5% | ||||||||||
Republic of Venezuela: | ||||||||||
8.250%, 10/13/24 («) | USD | 1,038 | 103,800 | |||||||
7.000%, 03/31/38 («) | USD | 58 | 5,873 | |||||||
109,673 |
The accompanying notes are an integral part of these financial statements.
24 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Emerging Markets Debt Portfolio (continued) | ||||||||||
Zambia | 0.6% | ||||||||||
Republic of Zambia, 8.970%, 07/30/27 | USD | 200 | $ | 125,100 | ||||||
Total Foreign Government Obligations (Cost $18,407,924) | 18,222,588 | |||||||||
Quasi Government Bonds | 0.1% | ||||||||||
Mexico | 0.0% | ||||||||||
Petroleos Mexicanos, 6.750%, 09/21/47 | USD | 20 | 17,550 | |||||||
Venezuela | 0.1% | ||||||||||
Petroleos de Venezuela SA: | ||||||||||
12.750%, 02/17/22 («) | USD | 273 | 10,920 | |||||||
6.000%, 11/15/26 («) | USD | 124 | 5,270 | |||||||
5.500%, 04/12/37 («) | USD | 100 | 4,000 | |||||||
20,190 | ||||||||||
Total Quasi Government Bonds (Cost $260,840) | 37,740 | |||||||||
Supranational Bonds | 0.1% | ||||||||||
International Finance Corp., 8.000%, 10/09/23 (Cost 14,272) | IDR | 200,000 | 14,619 | |||||||
Description | Shares | Fair Value | ||||||||
Short-Term Investments | 6.1% | ||||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $1,285,015) | 1,285,015 | $ | 1,285,015 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 25
Description | Fair Value | |||
Lazard Emerging Markets Debt Portfolio (continued) | ||||
Total Investments | 98.8% (Cost $21,323,583) (») | $ | 20,936,768 | ||
Cash and Other Assets in Excess of Liabilities | 1.2% | 253,107 | |||
Net Assets | 100.0% | $ | 21,189,875 |
The accompanying notes are an integral part of these financial statements.
26 Semi-Annual Report
Lazard Emerging Markets Debt Portfolio (continued)
Forward Currency Contracts open at June 30, 2021:
Currency | Currency | Settlement | Unrealized | Unrealized | |||||||||||||||||
Purchased | Quantity | Sold | Quantity | Counterparty | Date | Appreciation | Depreciation | ||||||||||||||
BRL | 105,280 | USD | 21,047 | BRC | 07/02/21 | $ | 120 | $ | — | ||||||||||||
BRL | 488,879 | USD | 97,733 | BRC | 07/02/21 | 558 | — | ||||||||||||||
BRL | 1,000,448 | USD | 188,270 | BRC | 07/02/21 | 12,874 | — | ||||||||||||||
BRL | 88,340 | USD | 17,500 | BRC | 08/03/21 | 201 | — | ||||||||||||||
BRL | 88,401 | USD | 17,500 | BRC | 08/03/21 | 213 | — | ||||||||||||||
BRL | 88,445 | USD | 17,500 | BRC | 08/03/21 | 222 | — | ||||||||||||||
BRL | 88,611 | USD | 17,500 | BRC | 08/03/21 | 255 | — | ||||||||||||||
BRL | 341,996 | USD | 68,369 | CIT | 07/02/21 | 390 | — | ||||||||||||||
BRL | 165,136 | USD | 32,681 | SCB | 07/02/21 | 520 | — | ||||||||||||||
BRL | 229,428 | USD | 45,865 | SCB | 07/02/21 | 262 | — | ||||||||||||||
BRL | 181,230 | USD | 35,978 | SSB | 08/03/21 | 335 | — | ||||||||||||||
BRL | 203,942 | USD | 40,445 | SSB | 08/03/21 | 420 | — | ||||||||||||||
CLP | 136,088,908 | USD | 187,280 | BOA | 07/26/21 | — | 2,081 | ||||||||||||||
CLP | 37,187,500 | USD | 50,000 | HSB | 07/26/21 | 607 | — | ||||||||||||||
CNH | 653,261 | USD | 100,933 | CIT | 07/19/21 | — | 32 | ||||||||||||||
CNH | 175,157 | USD | 27,162 | HSB | 07/19/21 | — | 107 | ||||||||||||||
CNH | 64,667 | USD | 10,000 | SCB | 07/19/21 | — | 12 | ||||||||||||||
CNH | 916,469 | USD | 141,191 | SCB | 07/19/21 | 364 | — | ||||||||||||||
CNH | 3,752 | USD | 586 | UBS | 07/19/21 | — | 7 | ||||||||||||||
COP | 125,044,128 | USD | 33,363 | BOA | 07/07/21 | — | 52 | ||||||||||||||
COP | 241,567,424 | USD | 64,573 | BOA | 07/07/21 | — | 222 | ||||||||||||||
COP | 74,880,000 | USD | 20,000 | BRC | 09/07/21 | — | 113 | ||||||||||||||
CZK | 2,331,180 | EUR | 90,000 | BOA | 07/20/21 | 1,626 | — | ||||||||||||||
CZK | 766,463 | EUR | 30,000 | BRC | 07/20/21 | 49 | — | ||||||||||||||
CZK | 776,289 | EUR | 30,428 | BRC | 07/20/21 | — | 2 | ||||||||||||||
CZK | 244,267 | EUR | 9,572 | JPM | 07/20/21 | 3 | — | ||||||||||||||
CZK | 5,120,124 | USD | 238,223 | BOA | 07/20/21 | — | 173 | ||||||||||||||
CZK | 419,578 | USD | 20,000 | HSB | 07/20/21 | — | 493 | ||||||||||||||
CZK | 416,212 | USD | 20,000 | SCB | 07/20/21 | — | 649 | ||||||||||||||
CZK | 794,780 | USD | 37,815 | UBS | 07/20/21 | — | 864 | ||||||||||||||
EUR | 41,054 | USD | 50,000 | HSB | 07/20/21 | — | 1,302 | ||||||||||||||
EUR | 50,000 | USD | 61,146 | HSB | 07/20/21 | — | 1,836 | ||||||||||||||
EUR | 16,416 | USD | 20,000 | JPM | 07/20/21 | — | 527 | ||||||||||||||
EUR | 1,433 | USD | 1,742 | SCB | 07/20/21 | — | 42 | ||||||||||||||
EUR | 8,429 | USD | 10,000 | SCB | 07/20/21 | — | 1 | ||||||||||||||
EUR | 16,739 | USD | 20,000 | SCB | 07/20/21 | — | 145 | ||||||||||||||
HUF | 10,525,200 | EUR | 30,000 | BRC | 07/20/21 | — | 77 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 27
Lazard Emerging Markets Debt Portfolio (continued)
Forward Currency Contracts open at June 30, 2021:
Currency | Currency | Settlement | Unrealized | Unrealized | |||||||||||||||||
Purchased | Quantity | Sold | Quantity | Counterparty | Date | Appreciation | Depreciation | ||||||||||||||
HUF | 21,070,500 | EUR | 60,000 | CIT | 07/20/21 | $ | — | $ | 86 | ||||||||||||
HUF | 17,888,500 | EUR | 51,357 | HSB | 07/20/21 | — | 568 | ||||||||||||||
HUF | 5,920,712 | USD | 20,000 | BRC | 07/20/21 | — | 25 | ||||||||||||||
HUF | 14,469,500 | USD | 50,000 | BRC | 07/20/21 | — | 1,184 | ||||||||||||||
HUF | 31,315,350 | USD | 110,000 | HSB | 07/20/21 | — | 4,351 | ||||||||||||||
HUF | 31,487,570 | USD | 110,482 | SCB | 07/20/21 | — | 4,252 | ||||||||||||||
IDR | 1,573,880,000 | USD | 110,000 | BRC | 07/08/21 | — | 1,509 | ||||||||||||||
IDR | 1,739,400,000 | USD | 120,000 | HSB | 07/30/21 | — | 303 | ||||||||||||||
IDR | 125,380,000 | USD | 8,644 | SCB | 07/21/21 | — | 10 | ||||||||||||||
IDR | 1,703,058,139 | USD | 118,853 | UBS | 07/21/21 | — | 1,575 | ||||||||||||||
KRW | 112,436,000 | USD | 101,187 | BRC | 07/08/21 | — | 1,351 | ||||||||||||||
KRW | 117,328,500 | USD | 104,017 | BRC | 08/09/21 | 148 | — | ||||||||||||||
KRW | 117,328,500 | USD | 104,001 | CIT | 08/09/21 | 164 | — | ||||||||||||||
KRW | 122,221,000 | USD | 110,000 | SCB | 07/08/21 | — | 1,475 | ||||||||||||||
KZT | 7,501,969 | USD | 17,410 | BOA | 07/26/21 | 56 | — | ||||||||||||||
KZT | 47,055,000 | USD | 108,066 | BRC | 07/28/21 | 1,429 | — | ||||||||||||||
KZT | 14,043,031 | USD | 32,590 | CIT | 07/26/21 | 105 | — | ||||||||||||||
MXN | 696,800 | USD | 34,846 | BOA | 07/19/21 | 36 | — | ||||||||||||||
MXN | 894,710 | USD | 44,072 | BOA | 07/19/21 | 718 | — | ||||||||||||||
MXN | 754,592 | USD | 37,759 | BRC | 07/19/21 | 16 | — | ||||||||||||||
MXN | 801,464 | USD | 40,000 | BRC | 07/19/21 | 122 | — | ||||||||||||||
MXN | 200,158 | USD | 10,000 | SCB | 07/19/21 | 20 | — | ||||||||||||||
MXN | 381,035 | USD | 19,035 | SCB | 07/19/21 | 40 | — | ||||||||||||||
MXN | 1,000,476 | USD | 50,000 | SCB | 07/19/21 | 84 | — | ||||||||||||||
MYR | 619,350 | USD | 150,000 | BOA | 08/04/21 | — | 1,022 | ||||||||||||||
MYR | 619,350 | USD | 148,604 | BOA | 08/25/21 | 251 | — | ||||||||||||||
MYR | 124,805 | USD | 30,000 | SCB | 08/25/21 | — | 5 | ||||||||||||||
PEN | 237,645 | USD | 61,068 | BOA | 07/23/21 | 763 | — | ||||||||||||||
PLN | 132,162 | EUR | 29,197 | BRC | 07/20/21 | 31 | — | ||||||||||||||
PLN | 135,187 | EUR | 30,000 | BRC | 07/20/21 | — | 128 | ||||||||||||||
PLN | 48,900 | EUR | 10,803 | JPM | 07/20/21 | 11 | — | ||||||||||||||
PLN | 186,880 | USD | 51,237 | BRC | 07/20/21 | — | 2,221 | ||||||||||||||
PLN | 228,378 | USD | 60,000 | BRC | 07/20/21 | — | 100 | ||||||||||||||
PLN | 109,862 | USD | 30,000 | SCB | 07/20/21 | — | 1,185 | ||||||||||||||
PLN | 2,759,123 | USD | 736,196 | SSB | 07/20/21 | — | 12,517 | ||||||||||||||
PLN | 410,036 | USD | 109,085 | UBS | 07/20/21 | — | 1,538 | ||||||||||||||
RON | 148,302 | EUR | 30,000 | BRC | 07/20/21 | 85 | — |
The accompanying notes are an integral part of these financial statements.
28 Semi-Annual Report
Lazard Emerging Markets Debt Portfolio (continued)
Forward Currency Contracts open at June 30, 2021:
Currency | Currency | Settlement | Unrealized | Unrealized | |||||||||||||||||
Purchased | Quantity | Sold | Quantity | Counterparty | Date | Appreciation | Depreciation | ||||||||||||||
RON | 158,786 | EUR | 32,123 | BRC | 07/20/21 | $ | 89 | $ | — | ||||||||||||
RON | 445,122 | EUR | 90,000 | BRC | 07/20/21 | 307 | — | ||||||||||||||
RON | 38,929 | EUR | 7,877 | JPM | 07/20/21 | 20 | — | ||||||||||||||
RON | 30,175 | USD | 7,253 | BOA | 07/20/21 | 5 | — | ||||||||||||||
RON | 80,531 | USD | 20,000 | BRC | 07/20/21 | — | 630 | ||||||||||||||
RON | 83,081 | USD | 20,000 | BRC | 07/20/21 | — | 16 | ||||||||||||||
RUB | 7,779,115 | USD | 106,635 | BOA | 08/25/21 | — | 1,114 | ||||||||||||||
THB | 321,330 | USD | 10,000 | SCB | 08/23/21 | 24 | — | ||||||||||||||
THB | 8,793,834 | USD | 281,591 | SCB | 08/23/21 | — | 7,261 | ||||||||||||||
THB | 7,857,609 | USD | 251,605 | SSB | 08/23/21 | — | 6,481 | ||||||||||||||
TRY | 817,664 | USD | 91,450 | BRC | 07/28/21 | 1,187 | — | ||||||||||||||
USD | 20,000 | BRL | 105,280 | BRC | 07/02/21 | — | 1,167 | ||||||||||||||
USD | 96,741 | BRL | 488,879 | BRC | 07/02/21 | — | 1,550 | ||||||||||||||
USD | 200,002 | BRL | 1,000,448 | BRC | 07/02/21 | — | 1,142 | ||||||||||||||
USD | 43,039 | BRL | 216,768 | BRC | 08/03/21 | — | 395 | ||||||||||||||
USD | 67,829 | BRL | 341,996 | CIT | 07/02/21 | — | 930 | ||||||||||||||
USD | 33,013 | BRL | 165,136 | SCB | 07/02/21 | — | 189 | ||||||||||||||
USD | 45,430 | BRL | 229,428 | SCB | 07/02/21 | — | 698 | ||||||||||||||
USD | 32,576 | BRL | 165,136 | SCB | 08/03/21 | — | 513 | ||||||||||||||
USD | 46,961 | BRL | 236,517 | SCB | 08/03/21 | — | 431 | ||||||||||||||
USD | 10,000 | CLP | 7,290,000 | HSB | 07/26/21 | 79 | — | ||||||||||||||
USD | 382,157 | CNH | 2,483,603 | SCB | 07/19/21 | — | 1,454 | ||||||||||||||
USD | 64,336 | COP | 241,567,424 | BOA | 09/07/21 | 179 | — | ||||||||||||||
USD | 69,792 | COP | 255,009,752 | BRC | 07/07/21 | 1,860 | — | ||||||||||||||
USD | 10,000 | COP | 37,261,800 | JPM | 07/07/21 | 74 | — | ||||||||||||||
USD | 20,000 | COP | 74,340,000 | SCB | 07/07/21 | 197 | — | ||||||||||||||
USD | 10,000 | CZK | 215,096 | SCB | 07/20/21 | — | — | ||||||||||||||
USD | 129,278 | EUR | 107,422 | BRC | 07/20/21 | 1,853 | — | ||||||||||||||
USD | 86,513 | EUR | 71,866 | CIT | 07/20/21 | 1,266 | — | ||||||||||||||
USD | 61,178 | EUR | 50,000 | HSB | 07/20/21 | 1,868 | — | ||||||||||||||
USD | 124,210 | EUR | 103,272 | JPM | 07/20/21 | 1,710 | — | ||||||||||||||
USD | 30,000 | EUR | 24,515 | SCB | 07/20/21 | 921 | — | ||||||||||||||
USD | 108,620 | EUR | 90,000 | SCB | 07/20/21 | 1,862 | — | ||||||||||||||
USD | 20,000 | IDR | 291,260,000 | CIT | 07/21/21 | — | 57 | ||||||||||||||
USD | 110,000 | IDR | 1,602,150,000 | CIT | 07/21/21 | — | 329 | ||||||||||||||
USD | 8,659 | IDR | 125,380,000 | SCB | 07/08/21 | 16 | — | ||||||||||||||
USD | 100,000 | IDR | 1,448,500,000 | SCB | 07/08/21 | 151 | — |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 29
Lazard Emerging Markets Debt Portfolio (continued)
Forward Currency Contracts open at June 30, 2021:
Currency | Currency | Settlement | Unrealized | Unrealized | |||||||||||||||||
Purchased | Quantity | Sold | Quantity | Counterparty | Date | Appreciation | Depreciation | ||||||||||||||
USD | 104,033 | KRW | 117,328,500 | BRC | 07/08/21 | $ | — | $ | 148 | ||||||||||||
USD | 104,015 | KRW | 117,328,500 | CIT | 07/08/21 | — | 166 | ||||||||||||||
USD | 70,000 | MXN | 1,396,875 | BRC | 07/19/21 | 72 | — | ||||||||||||||
USD | 148,736 | MYR | 619,350 | BOA | 08/04/21 | — | 242 | ||||||||||||||
USD | 27,570 | MYR | 114,253 | BOA | 08/25/21 | 111 | — | ||||||||||||||
USD | 10,000 | MYR | 41,535 | SCB | 08/25/21 | 18 | — | ||||||||||||||
USD | 20,000 | PLN | 74,939 | HSB | 07/20/21 | 345 | — | ||||||||||||||
USD | 19,961 | RON | 81,941 | BRC | 07/20/21 | 251 | — | ||||||||||||||
USD | 74,678 | RON | 306,358 | BRC | 07/20/21 | 990 | — | ||||||||||||||
USD | 30,000 | UAH | 837,000 | BOA | 08/17/21 | — | 259 | ||||||||||||||
USD | 30,000 | UAH | 835,500 | BRC | 08/17/21 | — | 205 | ||||||||||||||
USD | 10,113 | UYU | 439,830 | HSB | 07/06/21 | 29 | — | ||||||||||||||
USD | 97,101 | ZAR | 1,380,402 | BOA | 07/19/21 | 638 | — | ||||||||||||||
USD | 20,000 | ZAR | 276,256 | BRC | 07/19/21 | 695 | — | ||||||||||||||
USD | 97,060 | ZAR | 1,380,402 | BRC | 07/19/21 | 597 | — | ||||||||||||||
USD | 20,000 | ZAR | 282,725 | HSB | 07/19/21 | 243 | — | ||||||||||||||
USD | 20,000 | ZAR | 282,640 | HSB | 07/19/21 | 249 | — | ||||||||||||||
USD | 188,419 | ZAR | 2,679,604 | HSB | 07/19/21 | 1,167 | — | ||||||||||||||
USD | 10,000 | ZAR | 143,076 | SCB | 07/19/21 | 2 | — | ||||||||||||||
USD | 188,313 | ZAR | 2,679,604 | SSB | 07/19/21 | 1,061 | — | ||||||||||||||
UYU | 439,830 | USD | 9,944 | CIT | 07/06/21 | 140 | — | ||||||||||||||
UYU | 439,830 | USD | 10,022 | HSB | 09/07/21 | — | 36 | ||||||||||||||
ZAR | 499,313 | USD | 35,054 | BRC | 07/19/21 | — | 162 | ||||||||||||||
Total gross unrealized appreciation/depreciation on Forward Currency Contracts | $ | 43,374 | $ | 69,717 |
The accompanying notes are an integral part of these financial statements.
30 Semi-Annual Report
Lazard Emerging Markets Debt Portfolio (concluded)
Centrally Cleared Interest Rate Swap Agreements open at June 30, 2021:
Receive | Payment | |||||||||||||||||
Notional | Expiration | (Pay) | Frequency | Variable | Unrealized | |||||||||||||
Currency | Amount | Date | Rate | Paid/Received | Rate | Depreciation | ||||||||||||
BRL | 680,190 | 01/02/24 | 4.84% | Maturity | 1 month Brazilian Interbank Deposit Average | $ | 5,643 | |||||||||||
BRL | 838,319 | 01/02/24 | 5.84 | Maturity | 1 month Brazilian Interbank Deposit Average | 3,682 | ||||||||||||
Total gross unrealized depreciation on Centrally Cleared Interest Rate Swap Agreements | $ | 9,325 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 31
The accompanying notes are an integral part of these financial statements.
32 Semi-Annual Report
Principal | ||||||||||
Security | Amount | Fair | ||||||||
Description | Currency | (000) | Value | |||||||
Lazard Global Fixed Income Portfolio (continued) | ||||||||||
Apple, Inc., 3.000%, 06/20/27 | USD | 100 | $ | 109,947 | ||||||
Ball Corp., 4.875%, 03/15/26 | USD | 50 | 55,688 | |||||||
Bank of America Corp.: | ||||||||||
1.486% (SOFR + 1.460%), 05/19/24 (§) | USD | 60 | 61,024 | |||||||
3.248%, 10/21/27 | USD | 90 | 97,626 | |||||||
Clean Harbors, Inc. Co., 4.875%, 07/15/27 | USD | 45 | 47,137 | |||||||
Constellation Brands, Inc., 4.250%, 05/01/23 | USD | 85 | 90,668 | |||||||
Dell International LLC, 5.300%, 10/01/29 | USD | 85 | 102,564 | |||||||
John Deere Financial, Inc., 2.410%, 01/14/25 | CAD | 125 | 104,555 | |||||||
Johnson & Johnson, 3.625%, 03/03/37 | USD | 50 | 58,338 | |||||||
Johnson Controls International PLC, 1.750%, 09/15/30 | USD | 50 | 48,150 | |||||||
JPMorgan Chase & Co., 3.540% (USD LIBOR 3 Month + 1.380%), 05/01/28 (§) | USD | 120 | 131,936 | |||||||
Kimberly-Clark Corp., 3.200%, 04/25/29 | USD | 55 | 60,898 | |||||||
McDonald’s Corp., 3.125%, 03/04/25 | CAD | 110 | 94,091 | |||||||
Microsoft Corp., 3.500%, 11/15/42 | USD | 65 | 75,123 | |||||||
Morgan Stanley, 3.625%, 01/20/27 | USD | 100 | 110,882 | |||||||
Mueller Water Products, Inc., 4.000%, 06/15/29 (#) | USD | 50 | 51,381 | |||||||
PepsiCo, Inc., 2.875%, 10/15/49 | USD | 80 | 82,519 | |||||||
Pfizer, Inc., 2.625%, 04/01/30 | USD | 90 | 95,847 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 33
Principal | ||||||||||
Security | Amount | Fair | ||||||||
Description | Currency | (000) | Value | |||||||
Lazard Global Fixed Income Portfolio (continued) | ||||||||||
Prologis LP, 1.250%, 10/15/30 | USD | 105 | $ | 98,794 | ||||||
Sealed Air Corp., 4.875%, 12/01/22 | USD | 45 | 46,800 | |||||||
Service Corp. International, 4.625%, 12/15/27 | USD | 60 | 63,450 | |||||||
Starbucks Corp., 4.450%, 08/15/49 | USD | 85 | 105,431 | |||||||
The Goldman Sachs Group, Inc., 1.992% (SOFR + 1.090%), 01/27/32 (§) | USD | 85 | 82,551 | |||||||
The Home Depot, Inc., 5.875%, 12/16/36 | USD | 70 | 100,003 | |||||||
The Procter & Gamble Co., 1.200%, 10/29/30 | USD | 60 | 57,217 | |||||||
Toyota Motor Credit Corp., 2.150%, 02/13/30 | USD | 100 | 102,494 | |||||||
United Rentals North America, Inc., 4.875%, 01/15/28 | USD | 60 | 63,630 | |||||||
Verizon Communications, Inc., 3.875%, 02/08/29 | USD | 125 | 142,804 | |||||||
Visa, Inc., 0.750%, 08/15/27 | USD | 45 | 43,618 | |||||||
2,741,430 | ||||||||||
Total Corporate Bonds (Cost $3,347,281) | 3,425,543 | |||||||||
Foreign Government Obligations | 48.9% | ||||||||||
Australia | 2.5% | ||||||||||
New South Wales Treasury Corp., 1.250%, 11/20/30 | AUD | 155 | 111,747 | |||||||
Queensland Treasury Corp., 1.250%, 03/10/31 (#) | AUD | 155 | 111,566 | |||||||
223,313 |
The accompanying notes are an integral part of these financial statements.
34 Semi-Annual Report
Principal | ||||||||||
Security | Amount | Fair | ||||||||
Description | Currency | (000) | Value | |||||||
Lazard Global Fixed Income Portfolio (continued) | ||||||||||
Bahamas | 1.4% | ||||||||||
Bahamas Government International Bonds, 6.950%, 11/20/29 | USD | 5 | $ | 5,262 | ||||||
Commonwealth of Bahamas, 6.950%, 11/20/29 | USD | 118 | 124,180 | |||||||
129,442 | ||||||||||
Bermuda | 2.4% | ||||||||||
Government of Bermuda, 3.717%, 01/25/27 | USD | 200 | 217,534 | |||||||
Canada | 4.0% | ||||||||||
City of Vancouver, 2.900%, 11/20/25 | CAD | 90 | 77,816 | |||||||
Export Development Canada, 1.650%, 07/31/24 | CAD | 120 | 99,269 | |||||||
Province of Quebec: | ||||||||||
2.500%, 04/20/26 | USD | 40 | 42,838 | |||||||
1.850%, 02/13/27 | CAD | 170 | 140,787 | |||||||
360,710 | ||||||||||
Chile | 3.6% | ||||||||||
Bonos de la Tesoreria de la Republica en pesos: | ||||||||||
4.500%, 03/01/26 | CLP | 30,000 | 43,187 | |||||||
2.300%, 10/01/28 (#) | CLP | 135,000 | 159,104 | |||||||
Republic of Chile, 0.830%, 07/02/31 | EUR | 100 | 120,117 | |||||||
322,408 | ||||||||||
Colombia | 0.5% | ||||||||||
Republic of Colombia, 9.850%, 06/28/27 | COP | 148,000 | 46,137 | |||||||
Czech Republic | 3.1% | ||||||||||
Czech Republic, 2.000%, 10/13/33 | CZK | 6,040 | 285,208 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 35
Principal | ||||||||||
Security | Amount | Fair | ||||||||
Description | Currency | (000) | Value | |||||||
Lazard Global Fixed Income Portfolio (continued) | ||||||||||
Hungary | 3.6% | ||||||||||
Hungary Government Bonds: | ||||||||||
2.750%, 12/22/26 | HUF | 25,370 | $ | 88,312 | ||||||
3.000%, 10/27/27 | HUF | 25,210 | 88,828 | |||||||
2.250%, 04/20/33 | HUF | 28,620 | 90,918 | |||||||
Hungary Government International Bonds, 1.750%, 06/05/35 | EUR | 45 | 56,537 | |||||||
324,595 | ||||||||||
Italy | 1.1% | ||||||||||
Italy Buoni Poliennali Del Tesoro, 1.450%, 03/01/36 (#) | EUR | 83 | 101,421 | |||||||
Japan | 2.2% | ||||||||||
Japan International Cooperation Agency, 1.750%, 04/28/31 | USD | 200 | 200,575 | |||||||
Mexico | 1.6% | ||||||||||
Mexican Bonos, 7.500%, 06/03/27 | MXN | 1,630 | 85,296 | |||||||
United Mexican States, 6.750%, 02/06/24 | GBP | 35 | 55,551 | |||||||
140,847 | ||||||||||
Morocco | 1.2% | ||||||||||
Morocco Government International Bonds, 1.500%, 11/27/31 | EUR | 100 | 111,075 | |||||||
Netherlands | 2.2% | ||||||||||
Nederlandse Waterschapsbank NV, 0.500%, 12/02/25 (#) | USD | 200 | 196,918 | |||||||
New Zealand | 3.4% | ||||||||||
Housing New Zealand, Ltd. MTN, 3.420%, 10/18/28 | NZD | 120 | 92,351 | |||||||
New Zealand Local Government Funding Agency Bonds, 2.000%, 04/15/37 | NZD | 80 | 50,557 |
The accompanying notes are an integral part of these financial statements.
36 Semi-Annual Report
Principal | ||||||||||
Security | Amount | Fair | ||||||||
Description | Currency | (000) | Value | |||||||
Lazard Global Fixed Income Portfolio (continued) | ||||||||||
New Zealand Local Government Funding Agency Bonds, 1.500%, 04/20/29 | NZD | 240 | $ | 162,024 | ||||||
304,932 | ||||||||||
Norway | 2.6% | ||||||||||
Oslo Kommune: | ||||||||||
2.300%, 03/14/24 | NOK | 1,000 | 119,027 | |||||||
2.350%, 09/04/24 | NOK | 1,000 | 119,629 | |||||||
238,656 | ||||||||||
Panama | 2.0% | ||||||||||
Republic of Panama, 8.875%, 09/30/27 | USD | 130 | 179,221 | |||||||
Peru | 1.1% | ||||||||||
Peru Government Bonds, 6.150%, 08/12/32 (#) | PEN | 365 | 99,185 | |||||||
Poland | 1.9% | ||||||||||
Poland Government Bonds: | ||||||||||
2.500%, 07/25/27 | PLN | 318 | 88,810 | |||||||
2.750%, 10/25/29 | PLN | 299 | 85,894 | |||||||
174,704 | ||||||||||
Romania | 3.7% | ||||||||||
Romanian Government Bonds: | ||||||||||
4.750%, 02/24/25 | RON | 695 | 179,447 | |||||||
3.650%, 09/24/31 | RON | 360 | 87,502 | |||||||
Romanian Government International Bonds, 3.875%, 10/29/35 | EUR | 50 | 69,663 | |||||||
336,612 | ||||||||||
Singapore | 1.1% | ||||||||||
Singapore Government Bonds, 3.375%, 09/01/33 | SGD | 110 | 96,200 | |||||||
Spain | 1.1% | ||||||||||
Spain Government Bonds, 1.200%, 10/31/40 (#) | EUR | 83 | 99,837 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 37
Principal | ||||||||||
Security | Amount | Fair | ||||||||
Description | Currency | (000) | Value | |||||||
Lazard Global Fixed Income Portfolio (continued) | ||||||||||
Thailand | 1.0% | ||||||||||
Thailand Government Bonds, 1.585%, 12/17/35 | THB | 3,110 | $ | 89,823 | ||||||
United Kingdom | 1.6% | ||||||||||
United Kingdom Gilt: | ||||||||||
1.750%, 09/07/37 | GBP | 65 | 98,309 | |||||||
1.500%, 07/22/47 | GBP | 32 | 46,823 | |||||||
145,132 | ||||||||||
Total Foreign Government Obligations (Cost $4,445,722) | 4,424,485 | |||||||||
Quasi Government Bonds | 1.4% | ||||||||||
Germany | 1.4% | ||||||||||
Kreditanstalt fuer Wiederaufbau, 1.750%, 09/14/29 (Cost 125,987) | USD | 125 | 128,885 | |||||||
Supranational Bonds | 10.0% | ||||||||||
Asian Development Bank, 2.125%, 03/19/25 | USD | 60 | 63,118 | |||||||
European Bank for Reconstruction & Development, 1.625%, 09/27/24 | USD | 55 | 56,800 | |||||||
European Investment Bank, 1.000%, 01/28/28 | CAD | 130 | 101,497 | |||||||
Inter-American Development Bank, 7.875%, 03/14/23 | IDR | 1,160,000 | 84,176 | |||||||
International Bank for Reconstruction & Development: | ||||||||||
2.500%, 08/03/23 | CAD | 115 | 96,447 | |||||||
2.500%, 08/03/23 | CAD | 20 | 16,773 | |||||||
1.900%, 01/16/25 | CAD | 70 | 58,283 | |||||||
2.900%, 11/26/25 | AUD | 135 | 109,972 |
The accompanying notes are an integral part of these financial statements.
38 Semi-Annual Report
Principal | ||||||||||
Security | Amount | Fair | ||||||||
Description | Currency | (000) | Value | |||||||
Lazard Global Fixed Income Portfolio (continued) | ||||||||||
International Bank for Reconstruction & Development MTN, 1.250%, 03/16/26 | NOK | 810 | $ | 93,646 | ||||||
International Finance Corp., 2.125%, 04/07/26 | USD | 120 | 126,914 | |||||||
International Finance Corp. MTN, 1.500%, 04/15/35 | AUD | 142 | 97,755 | |||||||
Total Supranational Bonds (Cost $884,003) | 905,381 | |||||||||
US Municipal Bonds | 1.2% | ||||||||||
California | 1.2% | ||||||||||
State of California: | ||||||||||
4.500%, 04/01/33 | USD | 45 | 53,156 | |||||||
7.550%, 04/01/39 | USD | 30 | 51,150 | |||||||
104,306 | ||||||||||
Total US Municipal Bonds (Cost $96,570) | 104,306 | |||||||||
US Treasury Securities | 0.4% | ||||||||||
US Treasury Notes, 0.625%, 08/15/30 (Cost 32,631) | USD | 35 | 32,607 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 39
Fair | ||||||||
Description | Shares | Value | ||||||
Lazard Global Fixed Income Portfolio (continued) | ||||||||
Short-Term Investments | 1.1% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $103,131) | 103,131 | $ | 103,131 | |||||
Total Investments | 100.9% (Cost $9,035,325) (») | $ | 9,124,338 | ||||||
Liabilities in Excess of Cash and Other Assets | (0.9)% | (78,684 | ) | ||||||
Net Assets | 100.0% | $ | 9,045,654 |
The accompanying notes are an integral part of these financial statements.
40 Semi-Annual Report
Lazard Global Fixed Income Portfolio (continued)
Forward Currency Contracts open at June 30, 2021:
Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||||
AUD | 63,094 | USD | 49,500 | JPM | 07/16/21 | $ | — | $ | 2,179 | |||||||||||||||
AUD | 75,017 | USD | 58,061 | JPM | 07/16/21 | — | 1,798 | |||||||||||||||||
AUD | 105,539 | USD | 81,909 | JPM | 07/16/21 | — | 2,755 | |||||||||||||||||
AUD | 135,502 | USD | 105,383 | JPM | 07/16/21 | — | 3,756 | |||||||||||||||||
CAD | 78,913 | USD | 65,285 | HSB | 07/16/21 | — | 1,626 | |||||||||||||||||
CAD | 77,692 | USD | 61,984 | MSC | 07/16/21 | 691 | — | |||||||||||||||||
CHF | 36,425 | USD | 39,594 | HSB | 07/16/21 | — | 212 | |||||||||||||||||
CHF | 61,997 | USD | 67,392 | JPM | 07/16/21 | — | 361 | |||||||||||||||||
CNH | 2,768,949 | USD | 421,437 | HSB | 07/16/21 | 6,337 | — | |||||||||||||||||
CNH | 1,789,642 | USD | 278,957 | HSB | 09/03/21 | — | 3,399 | |||||||||||||||||
CZK | 358,669 | USD | 17,167 | HSB | 07/16/21 | — | 491 | |||||||||||||||||
CZK | 1,631,277 | USD | 77,300 | JPM | 07/16/21 | — | 1,455 | |||||||||||||||||
EUR | 43,544 | USD | 52,184 | CIT | 07/16/21 | — | 537 | |||||||||||||||||
EUR | 29,816 | USD | 35,382 | HSB | 07/16/21 | — | 17 | |||||||||||||||||
EUR | 1,058,603 | USD | 1,268,535 | HSB | 07/16/21 | — | 12,926 | |||||||||||||||||
EUR | 67,547 | USD | 81,000 | JPM | 07/16/21 | — | 882 | |||||||||||||||||
EUR | 100,146 | USD | 120,011 | MSC | 07/16/21 | — | 1,228 | |||||||||||||||||
GBP | 19,786 | USD | 28,000 | JPM | 07/16/21 | — | 628 | |||||||||||||||||
GBP | 45,540 | USD | 64,653 | JPM | 07/16/21 | — | 1,655 | |||||||||||||||||
GBP | 55,103 | USD | 75,987 | JPM | 07/16/21 | 241 | — | |||||||||||||||||
HUF | 7,990,156 | USD | 27,512 | JPM | 07/16/21 | — | 555 | |||||||||||||||||
HUF | 30,527,737 | USD | 106,654 | JPM | 07/16/21 | — | 3,657 | |||||||||||||||||
IDR | 11,365,000 | USD | 778 | JPM | 09/30/21 | 1 | — | |||||||||||||||||
INR | 3,498,117 | USD | 46,676 | JPM | 09/30/21 | — | 75 | |||||||||||||||||
JPY | 44,497,629 | USD | 409,810 | CIT | 07/16/21 | — | 9,229 | |||||||||||||||||
JPY | 94,403,323 | USD | 869,436 | HSB | 07/16/21 | — | 19,588 | |||||||||||||||||
JPY | 9,313,280 | USD | 85,772 | JPM | 07/16/21 | — | 1,931 | |||||||||||||||||
KRW | 118,308,720 | USD | 104,764 | JPM | 08/10/21 | 271 | — | |||||||||||||||||
MXN | 276,625 | USD | 13,760 | JPM | 07/16/21 | 94 | — | |||||||||||||||||
MXN | 714,092 | USD | 35,600 | JPM | 07/16/21 | 161 | — | |||||||||||||||||
NOK | 1,011,275 | USD | 118,308 | HSB | 07/16/21 | — | 848 | |||||||||||||||||
NZD | 67,872 | USD | 49,500 | HSB | 07/16/21 | — | 2,059 | |||||||||||||||||
NZD | 44,004 | USD | 31,444 | JPM | 07/16/21 | — | 686 | |||||||||||||||||
NZD | 62,670 | USD | 44,860 | JPM | 07/16/21 | — | 1,054 | |||||||||||||||||
PHP | 2,245,608 | USD | 45,901 | HSB | 09/30/21 | — | 30 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 41
Lazard Global Fixed Income Portfolio (continued)
Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||||
PLN | 222,793 | USD | 60,200 | HSB | 07/16/21 | $ | — | $ | 1,766 | |||||||||||||||
PLN | 102,223 | USD | 27,449 | JPM | 07/16/21 | — | 638 | |||||||||||||||||
RON | 61,475 | USD | 14,828 | HSB | 07/16/21 | — | 40 | |||||||||||||||||
RUB | 1,899,971 | USD | 25,563 | JPM | 07/16/21 | 368 | — | |||||||||||||||||
SEK | 457,176 | USD | 54,243 | JPM | 07/16/21 | — | 816 | |||||||||||||||||
THB | 885,374 | USD | 28,378 | HSB | 07/16/21 | — | 755 | |||||||||||||||||
USD | 97,585 | AUD | 126,128 | CIT | 07/16/21 | 2,989 | — | |||||||||||||||||
USD | 20,853 | AUD | 26,885 | HSB | 07/16/21 | 689 | — | |||||||||||||||||
USD | 25,700 | AUD | 33,455 | HSB | 07/16/21 | 609 | — | |||||||||||||||||
USD | 169,805 | AUD | 219,506 | HSB | 07/16/21 | 5,175 | — | |||||||||||||||||
USD | 190,794 | AUD | 246,575 | JPM | 07/16/21 | 5,861 | — | |||||||||||||||||
USD | 69,025 | AUD | 89,222 | MSC | 07/16/21 | 2,107 | — | |||||||||||||||||
USD | 191,304 | CAD | 239,796 | CIT | 07/16/21 | — | 2,140 | |||||||||||||||||
USD | 21,100 | CAD | 25,730 | HSB | 07/16/21 | 344 | — | |||||||||||||||||
USD | 222,493 | CAD | 278,868 | HSB | 07/16/21 | — | 2,471 | |||||||||||||||||
USD | 53,200 | CAD | 64,172 | JPM | 07/16/21 | 1,432 | — | |||||||||||||||||
USD | 73,157 | CAD | 91,701 | JPM | 07/16/21 | — | 819 | |||||||||||||||||
USD | 100,146 | CAD | 124,167 | JPM | 07/16/21 | — | 19 | |||||||||||||||||
USD | 101,534 | CAD | 125,854 | JPM | 07/16/21 | 7 | — | |||||||||||||||||
USD | 17,400 | CHF | 15,621 | HSB | 07/16/21 | 511 | — | |||||||||||||||||
USD | 215,878 | CLP | 151,207,189 | CIT | 09/15/21 | 10,392 | — | |||||||||||||||||
USD | 33,317 | COP | 126,104,841 | CIT | 08/10/21 | — | 222 | |||||||||||||||||
USD | 36,504 | CZK | 789,127 | HSB | 07/16/21 | — | 185 | |||||||||||||||||
USD | 230,773 | CZK | 4,988,802 | JPM | 07/16/21 | — | 1,176 | |||||||||||||||||
USD | 46,800 | EUR | 38,579 | HSB | 07/16/21 | 1,041 | — | |||||||||||||||||
USD | 51,000 | EUR | 42,019 | HSB | 07/16/21 | 1,161 | — | |||||||||||||||||
USD | 63,000 | EUR | 51,623 | HSB | 07/16/21 | 1,770 | — | |||||||||||||||||
USD | 158,419 | EUR | 132,202 | HSB | 07/16/21 | 1,614 | — | |||||||||||||||||
USD | 27,700 | EUR | 22,743 | JPM | 07/16/21 | 725 | — | |||||||||||||||||
USD | 29,100 | GBP | 20,534 | HSB | 07/16/21 | 694 | — | |||||||||||||||||
USD | 9,900 | GBP | 7,140 | JPM | 07/16/21 | 23 | — | |||||||||||||||||
USD | 13,535 | GBP | 9,815 | JPM | 07/16/21 | — | 43 | |||||||||||||||||
USD | 13,211 | HUF | 3,984,143 | HSB | 07/16/21 | — | 231 | |||||||||||||||||
USD | 90,059 | HUF | 26,968,597 | HSB | 07/16/21 | — | 930 | |||||||||||||||||
USD | 253,963 | HUF | 76,595,190 | JPM | 07/16/21 | — | 4,461 | |||||||||||||||||
USD | 61,000 | JPY | 6,726,988 | CIT | 07/16/21 | 442 | — | |||||||||||||||||
USD | 26,600 | JPY | 2,927,941 | HSB | 07/16/21 | 242 | — |
The accompanying notes are an integral part of these financial statements.
42 Semi-Annual Report
Lazard Global Fixed Income Portfolio (concluded)
Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||||||
USD | 41,300 | JPY | 4,511,488 | HSB | 07/16/21 | $ | 686 | $ | — | |||||||||||||||
USD | 39,040 | MXN | 790,743 | HSB | 07/16/21 | — | 559 | |||||||||||||||||
USD | 97,274 | NOK | 812,380 | HSB | 07/16/21 | 2,915 | — | |||||||||||||||||
USD | 360,073 | NOK | 3,010,441 | JPM | 07/16/21 | 10,409 | — | |||||||||||||||||
USD | 83,109 | NZD | 116,322 | CIT | 07/16/21 | 1,802 | — | |||||||||||||||||
USD | 110,320 | NZD | 154,431 | HSB | 07/16/21 | 2,374 | — | |||||||||||||||||
USD | 85,686 | NZD | 119,937 | JPM | 07/16/21 | 1,851 | — | |||||||||||||||||
USD | 95,850 | NZD | 133,044 | JPM | 07/16/21 | 2,854 | — | |||||||||||||||||
USD | 90,832 | PEN | 346,707 | JPM | 08/10/21 | 528 | — | |||||||||||||||||
USD | 150,316 | PLN | 569,923 | HSB | 07/16/21 | 836 | — | |||||||||||||||||
USD | 43,005 | PLN | 163,064 | JPM | 07/16/21 | 236 | — | |||||||||||||||||
USD | 15,600 | RON | 63,438 | HSB | 07/16/21 | 339 | — | |||||||||||||||||
USD | 132,785 | RON | 548,347 | HSB | 07/16/21 | 874 | — | |||||||||||||||||
USD | 4,597 | SEK | 38,748 | JPM | 07/16/21 | 69 | — | |||||||||||||||||
USD | 8,721 | SGD | 11,641 | HSB | 07/16/21 | 64 | — | |||||||||||||||||
USD | 77,230 | SGD | 103,102 | JPM | 07/16/21 | 557 | — | |||||||||||||||||
USD | 45,010 | THB | 1,447,194 | HSB | 07/16/21 | — | 143 | |||||||||||||||||
Total gross unrealized appreciation/depreciation on Forward Currency Contracts | $ | 72,386 | $ | 93,031 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 43
The accompanying notes are an integral part of these financial statements.
44 Semi-Annual Report
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (continued) | ||||||||
Capital Markets | 0.7% | ||||||||
Icahn Enterprises LP, 6.250%, 05/15/26 | $ | 1,500 | $ | 1,591,500 | ||||
MPT Operating Partnership LP, 3.500%, 03/15/31 | 500 | 504,995 | ||||||
2,096,495 | ||||||||
Chemicals | 2.1% | ||||||||
CF Industries, Inc., 3.450%, 06/01/23 | 1,725 | 1,800,469 | ||||||
Methanex Corp., 5.125%, 10/15/27 | 1,000 | 1,080,000 | ||||||
Mosaic Global Holdings, Inc., 7.300%, 01/15/28 | 775 | 982,949 | ||||||
Valvoline, Inc., 3.625%, 06/15/31 (#) | 1,500 | 1,500,000 | ||||||
WR Grace & Co-Conn, 4.875%, 06/15/27 (#) | 1,000 | 1,060,300 | ||||||
6,423,718 | ||||||||
Commercial Services & Supplies | 5.3% | ||||||||
ACCO Brands Corp., 4.250%, 03/15/29 (#) | 2,000 | 1,980,000 | ||||||
Aramark Services, Inc., 5.000%, 04/01/25 (#) | 2,000 | 2,050,000 | ||||||
Ashtead Capital, Inc., 4.375%, 08/15/27 (#) | 1,900 | 1,990,250 | ||||||
Clean Harbors, Inc., 4.875%, 07/15/27 (#) | 2,000 | 2,095,000 | ||||||
GFL Environmental, Inc., 3.500%, 09/01/28 (#) | 1,750 | 1,745,625 | ||||||
KAR Auction Services, Inc., 5.125%, 06/01/25 (#) | 1,800 | 1,847,160 | ||||||
Pitney Bowes, Inc., 6.875%, 03/15/27 (#) | 2,000 | 2,112,500 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 45
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (continued) | ||||||||
Prime Security Services Borrower LLC, 3.375%, 08/31/27 (#) | $ | 1,500 | $ | 1,455,000 | ||||
The ADT Security Corp., 4.125%, 06/15/23 | 500 | 526,250 | ||||||
15,801,785 | ||||||||
Construction Materials | 0.6% | ||||||||
James Hardie International Finance DAC, 5.000%, 01/15/28 (#) | 1,760 | 1,863,990 | ||||||
Consumer Finance | 0.4% | ||||||||
Ford Motor Credit Co. LLC, 4.125%, 08/17/27 | 1,000 | 1,060,777 | ||||||
Containers & Packaging | 3.7% | ||||||||
Ardagh Metal Packaging Finance USA LLC, 4.000%, 09/01/29 (#) | 1,200 | 1,189,890 | ||||||
Ardagh Packaging Finance PLC, 4.125%, 08/15/26 (#) | 1,200 | 1,239,000 | ||||||
Ball Corp., 4.000%, 11/15/23 | 2,100 | 2,223,123 | ||||||
Crown Americas LLC: 4.500%, 01/15/23 | 1,550 | 1,623,625 | ||||||
4.250%, 09/30/26 | 500 | 536,250 | ||||||
Graphic Packaging International LLC, 3.500%, 03/15/28 (#) | 1,600 | 1,612,000 | ||||||
Sealed Air Corp., 4.875%, 12/01/22 (#) | 1,700 | 1,768,000 | ||||||
Silgan Holdings, Inc., 4.125%, 02/01/28 | 100 | 103,750 | ||||||
Smurfit Kappa Treasury Funding DAC, 7.500%, 11/20/25 | 750 | 931,875 | ||||||
11,227,513 | ||||||||
Diversified Consumer Services | 0.7% | ||||||||
Service Corp. International, 4.625%, 12/15/27 | 2,000 | 2,115,000 |
The accompanying notes are an integral part of these financial statements.
46 Semi-Annual Report
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (continued) | ||||||||
Diversified Financial Services | 1.8% | ||||||||
INEOS Group Holdings SA, 5.625%, 08/01/24 (#) | $ | 1,700 | $ | 1,698,810 | ||||
Level 3 Financing, Inc.: 4.250%, 07/01/28 (#) | 1,000 | 1,014,760 | ||||||
3.625%, 01/15/29 (#) | 1,000 | 965,000 | ||||||
Suburban Propane Partners LP, 5.000%, 06/01/31 (#) | 1,750 | 1,791,563 | ||||||
5,470,133 | ||||||||
Diversified Telecommunication Services | 3.0% | ||||||||
Connect Finco SARL, 6.750%, 10/01/26 (#) | 1,500 | 1,586,250 | ||||||
Hughes Satellite Systems Corp., 5.250%, 08/01/26 | 2,091 | 2,342,296 | ||||||
Lumen Technologies, Inc., 4.000%, 02/15/27 (#) | 1,100 | 1,122,000 | ||||||
SBA Communications Corp., 4.875%, 09/01/24 | 2,000 | 2,035,000 | ||||||
Zayo Group Holdings, Inc., 4.000%, 03/01/27 (#) | 2,000 | 1,986,240 | ||||||
9,071,786 | ||||||||
Electric Utilities | 0.5% | ||||||||
NRG Energy, Inc., 3.625%, 02/15/31 (#) | 1,500 | 1,474,050 | ||||||
Electrical Equipment | 1.6% | ||||||||
Rackspace Technology Global, Inc., 3.500%, 02/15/28 (#) | 2,000 | 1,935,000 | ||||||
Sensata Tech, Inc., 4.375%, 02/15/30 (#) | 1,100 | 1,159,226 | ||||||
Sensata Technologies, Inc., 3.750%, 02/15/31 (#) | 250 | 247,207 | ||||||
Vistra Operations Co. LLC, 4.375%, 05/01/29 (#) | 1,500 | 1,507,500 | ||||||
4,848,933 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 47
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (continued) | ||||||||
Entertainment | 0.9% | ||||||||
Live Nation Entertainment, Inc.: 4.875%, 11/01/24 (#) | $ | 1,550 | $ | 1,574,800 | ||||
3.750%, 01/15/28 (#) | 500 | 502,210 | ||||||
Netflix, Inc., 4.375%, 11/15/26 | 500 | 568,610 | ||||||
2,645,620 | ||||||||
Equity Real Estate Investment Trusts (REITs) | 4.0% | ||||||||
ESH Hospitality, Inc., 5.250%, 05/01/25 (#) | 2,000 | 2,037,200 | ||||||
HAT Holdings I LLC, 3.375%, 06/15/26 (#) | 1,500 | 1,511,250 | ||||||
Iron Mountain, Inc.: 4.875%, 09/15/29 (#) | 500 | 516,100 | ||||||
4.500%, 02/15/31 (#) | 1,250 | 1,265,625 | ||||||
MGM Growth Properties Operating Partnership LP, 4.500%, 09/01/26 | 1,800 | 1,921,500 | ||||||
Park Intermediate Holdings LLC, 4.875%, 05/15/29 (#) | 1,500 | 1,551,675 | ||||||
RHP Hotel Properties L.P. / RHP Finance Corp., 4.500%, 02/15/29 (#) | 1,750 | 1,751,435 | ||||||
VICI Properties LP, 4.250%, 12/01/26 (#) | 1,500 | 1,560,330 | ||||||
12,115,115 | ||||||||
Food & Staples Retailing | 2.2% | ||||||||
Albertsons Cos, Inc., 3.500%, 03/15/29 (#) | 1,500 | 1,483,125 | ||||||
Ingles Markets, Inc., 5.750%, 06/15/23 | 633 | 633,949 | ||||||
Kraft Heinz Foods Co., 4.250%, 03/01/31 | 2,350 | 2,669,574 | ||||||
Performance Food Group, Inc., 5.500%, 06/01/24 (#) | 1,805 | 1,808,935 | ||||||
6,595,583 |
The accompanying notes are an integral part of these financial statements.
48 Semi-Annual Report
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (continued) | ||||||||
Food Products | 2.4% | ||||||||
B&G Foods, Inc., 5.250%, 04/01/25 | $ | 1,500 | $ | 1,540,650 | ||||
Lamb Weston Holdings, Inc., 4.625%, 11/01/24 (#) | 2,000 | 2,069,560 | ||||||
Post Holdings, Inc., 4.500%, 09/15/31 (#) | 2,000 | 1,996,700 | ||||||
TreeHouse Foods, Inc., 4.000%, 09/01/28 | 1,750 | 1,736,875 | ||||||
7,343,785 | ||||||||
Gas Utilities | 0.6% | ||||||||
AmeriGas Partners LP, 5.625%, 05/20/24 | 1,550 | 1,693,375 | ||||||
Health Care Equipment & Supplies | 1.3% | ||||||||
Hill-Rom Holdings, Inc., 4.375%, 09/15/27 (#) | 1,800 | 1,863,000 | ||||||
Hologic, Inc., 4.625%, 02/01/28 (#) | 2,000 | 2,100,000 | ||||||
3,963,000 | ||||||||
Health Care Providers & Services | 4.5% | ||||||||
Centene Corp., 3.375%, 02/15/30 | 1,500 | 1,567,980 | ||||||
DaVita, Inc., 4.625%, 06/01/30 (#) | 2,000 | 2,056,440 | ||||||
Encompass Health Corp., 5.125%, 03/15/23 | 517 | 518,292 | ||||||
HCA, Inc., 3.500%, 09/01/30 | 2,000 | 2,130,740 | ||||||
Indigo Merger Sub, Inc., 2.875%, 07/15/26 (#) | 200 | 203,162 | ||||||
Legacy LifePoint Health LLC, 4.375%, 02/15/27 (#) | 1,250 | 1,265,000 | ||||||
Molina Healthcare, Inc., 5.375%, 11/15/22 | 1,700 | 1,778,625 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 49
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (continued) | ||||||||
Tenet Healthcare Corp.: 4.625%, 07/15/24 | $ | 750 | $ | 761,025 | ||||
4.875%, 01/01/26 (#) | 1,000 | 1,037,200 | ||||||
Teva Pharmaceutical Finance Netherlands III BV, 7.125%, 01/31/25 | 1,900 | 2,094,750 | ||||||
13,413,214 | ||||||||
Hotels, Restaurants & Leisure | 7.6% | ||||||||
1011778 BC ULC, 3.875%, 01/15/28 (#) | 2,100 | 2,126,250 | ||||||
Boyd Gaming Corp.: 4.750%, 12/01/27 | 850 | 879,750 | ||||||
4.750%, 06/15/31 (#) | 250 | 259,375 | ||||||
Brinker International, Inc., 5.000%, 10/01/24 (#) | 2,000 | 2,105,000 | ||||||
Cedar Fair LP, 5.375%, 04/15/27 | 1,550 | 1,596,500 | ||||||
Diamond Resorts International, Inc., 7.750%, 09/01/23 (#) | 1,500 | 1,542,000 | ||||||
Golden Nugget, Inc., 6.750%, 10/15/24 (#) | 1,622 | 1,638,577 | ||||||
Hilton Domestic Operating Co., Inc., 3.625%, 02/15/32 (#) | 2,000 | 1,975,000 | ||||||
International Game Technology PLC, 4.125%, 04/15/26 (#) | 1,500 | 1,561,875 | ||||||
MGM Resorts International, 4.625%, 09/01/26 | 800 | 845,000 | ||||||
Scientific Games International, Inc., 5.000%, 10/15/25 (#) | 1,750 | 1,806,875 | ||||||
Six Flags Entertainment Corp., 4.875%, 07/31/24 (#) | 1,850 | 1,868,500 | ||||||
Station Casinos LLC, 5.000%, 10/01/25 (#) | 899 | 912,485 | ||||||
Travel + Leisure Co., 6.625%, 07/31/26 (#) | 100 | 113,300 | ||||||
Wynn Las Vegas LLC, 5.500%, 03/01/25 (#) | 2,000 | 2,153,720 |
The accompanying notes are an integral part of these financial statements.
50 Semi-Annual Report
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (continued) | ||||||||
Yum! Brands, Inc., 4.625%, 01/31/32 | $ | 1,500 | $ | 1,575,000 | ||||
22,959,207 | ||||||||
Household Durables | 0.3% | ||||||||
Tempur Sealy International, Inc., 4.000%, 04/15/29 (#) | 1,000 | 1,012,450 | ||||||
Household Products | 1.0% | ||||||||
Energizer Holdings, Inc., 4.750%, 06/15/28 (#) | 1,200 | 1,229,700 | ||||||
Spectrum Brands, Inc., 5.750%, 07/15/25 | 1,800 | 1,844,550 | ||||||
3,074,250 | ||||||||
Independent Power & Renewable Electricity Producers | 1.1% | ||||||||
Calpine Corp., 4.500%, 02/15/28 (#) | 1,500 | 1,530,000 | ||||||
NextEra Energy Operating Partners LP, 4.500%, 09/15/27 (#) | 1,750 | 1,893,763 | ||||||
3,423,763 | ||||||||
Interactive Media & Services | 0.5% | ||||||||
Twitter, Inc., 3.875%, 12/15/27 (#) | 1,250 | 1,328,125 | ||||||
IT Services | 0.5% | ||||||||
Square, Inc., 3.500%, 06/01/31 (#) | 1,450 | 1,462,688 | ||||||
Machinery | 1.6% | ||||||||
Allison Transmission, Inc., 4.750%, 10/01/27 (#) | 1,795 | 1,864,592 | ||||||
Amsted Industries, Inc.: 5.625%, 07/01/27 (#) | 750 | 790,313 | ||||||
4.625%, 05/15/30 (#) | 1,000 | 1,025,000 | ||||||
Terex Corp., 5.000%, 05/15/29 (#) | 1,000 | 1,042,500 | ||||||
4,722,405 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 51
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (continued) | ||||||||
Media | 10.5% | ||||||||
AMC Networks, Inc., 4.250%, 02/15/29 | $ | 1,000 | $ | 1,008,750 | ||||
CCO Holdings LLC: 5.125%, 05/01/27 (#) | 500 | 524,450 | ||||||
4.750%, 03/01/30 (#) | 1,500 | 1,586,250 | ||||||
Clear Channel Worldwide Holdings, Inc., 5.125%, 08/15/27 (#) | 2,000 | 2,050,440 | ||||||
CSC Holdings LLC, 4.500%, 11/15/31 (#) | 1,000 | 1,006,140 | ||||||
CSC Holdings LLC, 7.500%, 04/01/28 (#) | 1,690 | 1,854,775 | ||||||
Diamond Sports Group LLC, 5.375%, 08/15/26 (#) | 1,500 | 971,250 | ||||||
Entercom Media Corp., 6.750%, 03/31/29 (#) | 1,500 | 1,556,423 | ||||||
GCI LLC, 4.750%, 10/15/28 (#) | 250 | 255,875 | ||||||
Lamar Media Corp., 3.625%, 01/15/31 (#) | 1,500 | 1,466,250 | ||||||
Meredith Corp., 6.875%, 02/01/26 | 1,567 | 1,629,680 | ||||||
Nexstar Broadcasting, Inc., 5.625%, 07/15/27 (#) | 1,500 | 1,590,000 | ||||||
Outfront Media Capital LLC, 5.000%, 08/15/27 (#) | 2,300 | 2,381,397 | ||||||
Scripps Escrow II, Inc., 3.875%, 01/15/29 (#) | 1,500 | 1,488,045 | ||||||
Sinclair Television Group, Inc.: 5.125%, 02/15/27 (#) | 1,750 | 1,756,563 | ||||||
4.125%, 12/01/30 (#) | 1,000 | 982,500 | ||||||
Sirius XM Radio, Inc., 5.000%, 08/01/27 (#) | 1,750 | 1,833,562 | ||||||
TEGNA, Inc., 5.000%, 09/15/29 | 1,750 | 1,831,340 |
The accompanying notes are an integral part of these financial statements.
52 Semi-Annual Report
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (continued) | ||||||||
Univision Communications, Inc., 5.125%, 02/15/25 (#) | $ | 2,000 | $ | 2,040,400 | ||||
Videotron, Ltd.: 5.000%, 07/15/22 | 1,558 | 1,620,476 | ||||||
5.125%, 04/15/27 (#) | 500 | 522,500 | ||||||
Virgin Media Secured Finance PLC, 5.500%, 08/15/26 (#) | 1,750 | 1,804,687 | ||||||
31,761,753 | ||||||||
Metals & Mining | 3.1% | ||||||||
Anglo American Capital PLC, 4.875%, 05/14/25 (#) | 1,650 | 1,867,657 | ||||||
FMG Resources August 2006 Pty, Ltd., 4.500%, 09/15/27 (#) | 1,750 | 1,903,125 | ||||||
Freeport-McMoRan, Inc., 4.550%, 11/14/24 | 2,200 | 2,392,500 | ||||||
Novelis Corp., 4.750%, 01/30/30 (#) | 1,500 | 1,575,000 | ||||||
Steel Dynamics, Inc., 5.000%, 12/15/26 | 1,550 | 1,622,754 | ||||||
9,361,036 | ||||||||
Mortgage Real Estate Investment Trusts (REITs) | 0.6% | ||||||||
Starwood Property Trust, Inc., 3.625%, 07/15/26 (#) | 1,743 | 1,756,073 | ||||||
Oil, Gas & Consumable Fuels | 6.2% | ||||||||
Buckeye Partners LP, 4.500%, 03/01/28 (#) | 1,500 | 1,537,965 | ||||||
Devon Energy Corp., 5.250%, 10/15/27 (#) | 65 | 70,062 | ||||||
DT Midstream, Inc., 4.375%, 06/15/31 (#) | 1,350 | 1,379,416 | ||||||
Energy Transfer Operating LP, 5.875%, 01/15/24 | 750 | 831,078 | ||||||
EQT Corp., 3.625%, 05/15/31 (#) | 1,750 | 1,824,375 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 53
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (continued) | ||||||||
Holly Energy Partners LP, 5.000%, 02/01/28 (#) | $ | 500 | $ | 511,250 | ||||
Murphy Oil Corp., 6.875%, 08/15/24 | 1,500 | 1,533,750 | ||||||
Occidental Petroleum Corp., 3.400%, 04/15/26 | 1,750 | 1,789,375 | ||||||
Ovintiv Exploration, Inc., 5.625%, 07/01/24 | 1,600 | 1,781,469 | ||||||
Range Resources Corp., 5.000%, 08/15/22 | 950 | 968,079 | ||||||
Southwestern Energy Co., 6.450%, 01/23/25 | 1,800 | 1,992,600 | ||||||
Sunoco LP, 5.500%, 02/15/26 | 1,700 | 1,751,850 | ||||||
Tallgrass Energy Partners LP, 5.500%, 01/15/28 (#) | 1,250 | 1,271,875 | ||||||
Targa Resources Partners L.P. / Targa Resources Partners Finance Corp., 4.000%, 01/15/32 (#) | 1,500 | 1,542,975 | ||||||
18,786,119 | ||||||||
Pharmaceuticals | 0.5% | ||||||||
Bausch Health Cos., Inc.: 5.000%, 02/15/29 (#) | 1,500 | 1,398,750 | ||||||
5.250%, 02/15/31 (#) | 100 | 93,345 | ||||||
1,492,095 | ||||||||
Professional Services | 1.2% | ||||||||
IHS Markit, Ltd., 5.000%, 11/01/22 (#) | 1,500 | 1,571,309 | ||||||
Nielsen Finance LLC: 5.625%, 10/01/28 (#) | 1,000 | 1,056,090 | ||||||
5.875%, 10/01/30 (#) | 1,000 | 1,088,423 | ||||||
3,715,822 | ||||||||
Software | 1.5% | ||||||||
Crowdstrike Holdings, Inc., 3.000%, 02/15/29 | 1,500 | 1,501,425 |
The accompanying notes are an integral part of these financial statements.
54 Semi-Annual Report
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (continued) | ||||||||
J2 Global, Inc., 4.625%, 10/15/30 (#) | $ | 1,500 | $ | 1,552,950 | ||||
Nuance Communications, Inc., 5.625%, 12/15/26 | 1,500 | 1,562,685 | ||||||
4,617,060 | ||||||||
Specialty Retail | 1.7% | ||||||||
Asbury Automotive Group, Inc., 4.500%, 03/01/28 | 987 | 1,014,143 | ||||||
Group 1 Automotive, Inc., 4.000%, 08/15/28 (#) | 1,000 | 1,017,500 | ||||||
Penske Automotive Group, Inc., 3.750%, 06/15/29 | 1,750 | 1,760,922 | ||||||
QVC, Inc., 4.750%, 02/15/27 | 1,250 | 1,325,462 | ||||||
5,118,027 | ||||||||
Technology Hardware, Storage & Peripherals | 2.7% | ||||||||
Clarivate Science Holdings Corp., 3.875%, 06/30/28 (#) | 1,200 | 1,210,932 | ||||||
Dell International LLC, 7.125%, 06/15/24 (#) | 1,525 | 1,564,192 | ||||||
NCR Corp., 5.750%, 09/01/27 (#) | 1,000 | 1,058,125 | ||||||
Seagate HDD Cayman, 4.091%, 06/01/29 (#) | 2,083 | 2,135,075 | ||||||
Western Digital Corp., 4.750%, 02/15/26 | 2,000 | 2,222,500 | ||||||
8,190,824 | ||||||||
Textiles, Apparel & Luxury Goods | 0.6% | ||||||||
Hanesbrands, Inc., 4.625%, 05/15/24 (#) | 1,750 | 1,855,000 | ||||||
Trading Companies & Distributors | 2.8% | ||||||||
American Builders & Contractors Supply Co., Inc., 4.000%, 01/15/28 (#) | 1,100 | 1,127,181 | ||||||
Avis Budget Car Rental LLC, 5.750%, 07/15/27 (#) | 1,500 | 1,572,660 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 55
Description | Principal Amount (000) | Fair Value | ||||||
Lazard US Corporate Income Portfolio (concluded) | ||||||||
Herc Holdings, Inc., 5.500%, 07/15/27 (#) | $ | 1,500 | $ | 1,581,330 | ||||
Standard Industries, Inc., 3.375%, 01/15/31 (#) | 2,000 | 1,914,420 | ||||||
United Rentals North America, Inc.: 5.500%, 05/15/27 | 1,000 | 1,060,000 | ||||||
3.875%, 11/15/27 | 1,100 | 1,155,803 | ||||||
8,411,394 | ||||||||
Wireless Telecommunication Services | 0.9% | ||||||||
Sprint Corp., 7.125%, 06/15/24 | 500 | 576,875 | ||||||
T-Mobile USA, Inc., 3.500%, 04/15/31 | 2,000 | 2,069,100 | ||||||
2,645,975 | ||||||||
Total Corporate Bonds (Cost $251,788,545) | 259,515,401 | |||||||
Fair | ||||||||
Description | Shares | Value | ||||||
Exchange-Traded Funds | 7.9% | ||||||||
Invesco Fundamental High Yield Corporate Bond ETF (Cost $23,042,937) | 1,222,805 | $ | 23,893,610 | |||||
Short-Term Investments | 6.1% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $18,351,274) | 18,351,274 | $ | 18,351,274 | |||||
Total Investments | 100.0% (Cost $293,182,756) | $ | 301,760,285 | ||||||
Liabilities in Excess of Cash and Other Assets | 0.0% | (125,475 | ) | ||||||
Net Assets | 100.0% | $ | 301,634,810 |
The accompanying notes are an integral part of these financial statements.
56 Semi-Annual Report
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 57
Principal | ||||||||
Amount | Fair | |||||||
Description | (000) | Value | ||||||
Lazard US Short Duration Fixed Income Portfolio (concluded) | ||||||||
US Government Securities | 0.7% | ||||||||
Mortgage-Backed Securities | 0.7% | ||||||||
Federal National Mortgage Association: Pool# FM1033, 4.500%, 01/01/27 (Cost $ 577,465) | $ | 557 | $ | 584,596 | ||||
US Treasury Securities | 81.7% | ||||||||
US Treasury Notes: | ||||||||
1.500%, 01/31/22 | 9,725 | 9,807,055 | ||||||
1.875%, 01/31/22 | 6,090 | 6,154,468 | ||||||
1.875%, 07/31/22 | 9,035 | 9,207,230 | ||||||
1.875%, 10/31/22 | 20,060 | 20,520,753 | ||||||
2.000%, 11/30/22 | 14,590 | 14,967,288 | ||||||
0.125%, 01/31/23 | 7,525 | 7,517,652 | ||||||
Total US Treasury Securities (Cost $68,177,040) | 68,174,446 | |||||||
Fair | ||||||||
Description | Shares | Value | ||||||
Short-Term Investments | 0.3% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $286,723) | 286,723 | 286,723 | ||||||
Total Investments | 99.4% (Cost $82,850,492) | $ | 82,978,939 | ||||||
Cash and Other Assets in Excess of Liabilities | 0.6% | 517,051 | |||||||
Net Assets | 100.0% | $ | 83,495,990 |
The accompanying notes are an integral part of these financial statements.
58 Semi-Annual Report
The Lazard Funds, Inc. Notes to Portfolios of Investments
June 30, 2021 (unaudited)
(§) | Variable and floating rate securities are securities for which interest rate changes are based on changes in a designated base rate. The rates shown are those in effect on June 30, 2021. |
(¶) | Date shown is the next perpetual call date. |
(#) | Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At June 30, 2021, the percentage of net assets for each Portfolio was as follows: |
Portfolio | Percentage of Net Assets | ||||
Emerging Markets Debt | 6.0 | % | |||
Global Fixed Income | 3.8 | % | |||
U.S. Corporate Income | 56.2 | % |
(Ø) | Step up bonds are securities which increase the interest payment rate at a specified point in time. Rate shown reflects rate in effect at June 30, 2021 which may step up at a future date. |
(«) | Issue in default. |
(») | The portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts. |
Security Abbreviations: |
BBSW | — | Bank Bill Swap Reference Rate |
ETF | — | Exchange-Traded Fund |
LIBOR | — | London Interbank Offered Rate |
NTN- F | — | Brazil Sovereign “Nota do Tesouro Nacional” Series F |
REIT | — | Real Estate Investment Trust |
SOFR | — | Secured Overnight Financing Rate |
Currency Abbreviations:
AUD | — | Australian Dollar | MXN | — | Mexican New Peso |
BRL | — | Brazilian Real | MYR | — | Malaysian Ringgit |
CAD | — | Canadian Dollar | NOK | — | Norwegian Krone |
CHF | — | Swiss Franc | NZD | — | New Zealand Dollar |
CLP | — | Chilean Peso | PEN | — | Peruvian Nuevo Sol |
CNH | — | Chinese Yuan Renminbi | PHP | — | Philippine Peso |
CNY | — | Chinese Yuan | PLN | — | Polish Zloty |
COP | — | Colombian Peso | RON | — | New Romanian Leu |
CZK | — | Czech Koruna | RUB | — | Russian Ruble |
EGP | — | Egyptian Pound | SEK | — | Swedish Krona |
EUR | — | Euro | SGD | — | Singapore Dollar |
GBP | — | British Pound Sterling | THB | — | Thai Baht |
HUF | — | Hungarian Forint | TRY | — | New Turkish Lira |
IDR | — | Indonesian Rupiah | UAH | — | Ukrainian hryvnia |
INR | — | Indian Rupee | USD | — | United States Dollar |
JPY | — | Japanese Yen | UYU | — | Uruguayan Peso |
KRS | — | South Korean Won | ZAR | — | South African Rand |
KZT | — | Kazakhstan Tenge | |||
Counterparty Abbreviations: | |||||
BOA | — | Bank of America NA | MSC | — | Morgan Stanley & Co. |
BRC | — | Barclays Bank PLC | SCB | — | Standard Chartered Bank |
CIT | — | Citibank NA | SSB | — | State Street Bank & Trust Co. |
HSB | — | HSBC Bank USA NA | UBS | — | UBS AG |
JPM | — | JPMorgan Chase Bank NA |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 59
Portfolio holdings by industry (as a percentage of net assets), for the Portfolio previously presented by country:
Lazard | Lazard | |||||||
Emerging | Global Fixed | |||||||
Markets Debt | Income | |||||||
Industry† | Portfolio | Portfolio | ||||||
Corporate & Quasi Government Bonds | ||||||||
Automobiles | — | % | 2.2 | % | ||||
Banks | 1.4 | 4.6 | ||||||
Beverages | — | 1.9 | ||||||
Building Products | — | 0.5 | ||||||
Capital Markets | — | 4.2 | ||||||
Commercial Services & Suppliers | — | 0.5 | ||||||
Consumer Finance | — | 1.4 | ||||||
Containers & Packaging | — | 1.1 | ||||||
Diversified Consumer Services | — | 0.7 | ||||||
Diversified Telecommunication Services | — | 1.6 | ||||||
Electrical Equipment | — | 1.2 | ||||||
Electronic Equipment, Instruments & Components | — | 0.1 | ||||||
Equity Real Estate Investment Trusts (REITs) | — | 1.1 | ||||||
Food & Staples Retailing | — | 1.6 | ||||||
Hotels, Restaurants & Leisure | — | 2.2 | ||||||
Household Products | — | 1.3 | ||||||
Interactive Media & Services | — | 1.2 | ||||||
Internet & Direct Marketing Retail | — | 0.6 | ||||||
IT Services | — | 0.5 | ||||||
Machinery | — | 1.7 | ||||||
Oil, Gas & Consumable Fuels | 3.3 | — | ||||||
Pharmaceuticals | — | 1.7 | ||||||
Software | — | 2.1 | ||||||
Specialty Retail | — | 1.1 | ||||||
Technology Hardware, Storage & Peripherals | — | 2.4 | ||||||
Trading Companies & Distributors | — | 0.7 | ||||||
Transportation Infrastructure | 1.9 | — | ||||||
Wireless Telecommunication Services | — | 1.1 | ||||||
Subtotal | 6.6 | 39.3 | ||||||
Foreign Government Obligations | 86.0 | 48.9 | ||||||
Supranational Bonds | 0.1 | 10.0 | ||||||
US Municipal Bonds | — | 1.2 | ||||||
US Treasury Securities | — | 0.4 | ||||||
Short-Term Investments | 6.1 | 1.1 | ||||||
Total Investments | 98.8 | % | 100.9 | % |
† | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
60 Semi-Annual Report
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Semi-Annual Report 61
The Lazard Funds, Inc. Statements of Assets and Liabilities (unaudited)
June 30, 2021 | Lazard Emerging Markets Debt Portfolio | | Lazard Global Fixed Income Portfolio | | | ||||
ASSETS | |||||||||
Investments in securities, at fair value | $ | 20,936,768 | $ | 9,124,338 | |||||
Cash | 300,633 | — | |||||||
Foreign currency, at fair value | 228,375 | 15,536 | |||||||
Receivables for: | |||||||||
Dividends and interest | 339,164 | 78,718 | |||||||
Capital stock sold | — | 5 | |||||||
Investments sold | 165,697 | 106,646 | |||||||
Amount due from Investment Manager (Note 3) | 11,687 | 8,996 | |||||||
Cash collateral due from broker on swaps | 10,664 | — | |||||||
Gross unrealized appreciation on forward currency contracts | 43,374 | 72,386 | |||||||
Total assets | 22,036,362 | 9,406,625 | |||||||
LIABILITIES | |||||||||
Payables for: | |||||||||
Management fees | — | — | |||||||
Accrued custodian fees | 94,596 | 31,589 | |||||||
Accrued professional services | 48,344 | 28,444 | |||||||
Accrued directors’ fees | 5,656 | 1,344 | |||||||
Accrued distribution fees | 91 | 9 | |||||||
Investments purchased | 604,618 | 205,612 | |||||||
Capital stock redeemed | 3,279 | 171 | |||||||
Dividends | 2,499 | — | |||||||
Variation margin on centrally cleared swap | 103 | — | |||||||
Gross unrealized depreciation on forward currency contracts | 69,717 | 93,031 | |||||||
Other accrued expenses and payables | 17,584 | 771 | |||||||
Total liabilities | 846,487 | 360,971 | |||||||
Net assets | $ | 21,189,875 | $ | 9,045,654 | |||||
NET ASSETS | |||||||||
Paid in capital | $ | 61,322,973 | $ | 8,824,876 | |||||
Distributable earnings (Accumulated loss) | (40,133,098 | ) | 220,778 | ||||||
Net assets | $ | 21,189,875 | $ | 9,045,654 |
The accompanying notes are an integral part of these financial statements.
62 Semi-Annual Report
Lazard US | |||||||||
Lazard | Short Duration | ||||||||
US Corporate | Fixed Income | ||||||||
Income Portfolio | Portfolio | ||||||||
$ | 301,760,285 | $ | 82,978,939 | ||||||
524,728 | — | ||||||||
— | — | ||||||||
3,398,554 | 482,182 | ||||||||
718,493 | — | ||||||||
— | 7,628,900 | ||||||||
— | — | ||||||||
— | — | ||||||||
— | — | ||||||||
306,402,060 | 91,090,021 | ||||||||
105,730 | 9,536 | ||||||||
68,824 | 26,765 | ||||||||
31,739 | 27,258 | ||||||||
6,756 | 3,004 | ||||||||
833 | 6 | ||||||||
4,460,055 | 7,522,751 | ||||||||
49,488 | 1,019 | ||||||||
23,709 | 876 | ||||||||
— | — | ||||||||
— | — | ||||||||
20,116 | 2,816 | ||||||||
4,767,250 | 7,594,031 | ||||||||
$ | 301,634,810 | $ | 83,495,990 | ||||||
$ | 301,442,025 | $ | 83,553,149 | ||||||
192,785 | (57,159 | ) | |||||||
$ | 301,634,810 | $ | 83,495,990 |
Semi-Annual Report 63
June 30, 2021 | Lazard Emerging Markets Debt Portfolio | | Lazard Global Fixed Income Portfolio | | | ||||
Institutional Shares | |||||||||
Net assets | $ | 20,787,312 | $ | 9,006,916 | |||||
Shares of capital stock outstanding* | 1,342,698 | 985,698 | |||||||
Net asset value, offering and redemption price per share | $ | 15.48 | $ | 9.14 | |||||
Open Shares | |||||||||
Net assets | $ | 401,357 | $ | 38,738 | |||||
Shares of capital stock outstanding* | 25,656 | 4,237 | |||||||
Net asset value, offering and redemption price per share | $ | 15.64 | $ | 9.14 | |||||
R6 Shares | |||||||||
Net assets | $ | 1,206 | — | ||||||
Shares of capital stock outstanding* | 73 | † | — | ||||||
Net asset value, offering and redemption price per share* | $ | 16.60 | — | ||||||
Cost of investments in securities | $ | 21,323,583 | $ | 9,035,325 | |||||
Cost of foreign currency | $ | 232,869 | $ | 15,965 |
* | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
† | Shares values are rounded for presentation purposes. |
The accompanying notes are an integral part of these financial statements.
64 Semi-Annual Report
Lazard US | |||||||||
Lazard | Short Duration | ||||||||
US Corporate | Fixed Income | ||||||||
Income Portfolio | Portfolio | ||||||||
$ | 297,680,894 | $ | 83,471,891 | ||||||
15,038,937 | 8,461,494 | ||||||||
$ | 19.79 | $ | 9.86 | ||||||
$ | 3,952,687 | $ | 24,099 | ||||||
198,756 | 2,441 | ||||||||
$ | 19.89 | $ | 9.87 | ||||||
$ | 1,229 | — | |||||||
62 | † | — | |||||||
$ | 19.87 | — | |||||||
$ | 293,182,756 | $ | 82,850,492 | ||||||
$ | — | $ | — |
Semi-Annual Report 65
The Lazard Funds, Inc. Statements of Operations (unaudited)
Lazard | Lazard | ||||||||
Emerging Markets | Global Fixed | ||||||||
For the Six Months Ended June 30, 2021 | Debt Portfolio | Income Portfolio | |||||||
Investment Income (Loss) | |||||||||
Income | |||||||||
Interest | $ | 506,767 | $ | 96,168 | |||||
Dividends | — | — | |||||||
Total investment income* | 506,767 | 96,168 | |||||||
Expenses | |||||||||
Management fees (Note 3) | 74,811 | 23,506 | |||||||
Custodian fees | 57,977 | 18,945 | |||||||
Professional services | 33,955 | 20,772 | |||||||
Administration fees | 15,852 | 13,626 | |||||||
Registration fees | 32,879 | 22,486 | |||||||
Shareholders’ services | 5,119 | 4,728 | |||||||
Directors’ fees and expenses | 4,070 | 2,687 | |||||||
Shareholders’ reports | 7,983 | 4,120 | |||||||
Distribution fees (Open Shares) | 485 | 57 | |||||||
Other^ | 158 | 62 | |||||||
Total gross expenses | 233,289 | 110,989 | |||||||
Management fees waived and expenses reimbursed | (141,902 | ) | (77,962 | ) | |||||
Total net expenses | 91,387 | 33,027 | |||||||
Net investment income (loss) | 415,380 | 63,141 | |||||||
Net Realized and Unrealized Gain (Loss) | |||||||||
Net realized gain (loss) on: Investments** | 165,134 | 203,158 | |||||||
Foreign currency transactions | (28,966 | ) | (2,555 | ) | |||||
Forward currency contracts | 9,883 | (147,385 | ) | ||||||
Futures contracts | (14,878 | ) | — | ||||||
Swap agreements | (12 | ) | — | ||||||
Total net realized gain (loss) | 131,161 | 53,218 | |||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||
Investments† | (815,680 | ) | (506,929 | ) | |||||
Foreign currency translations | (13,954 | ) | (2,811 | ) | |||||
Forward currency contracts | (69,653 | ) | 25,100 | ||||||
Swap agreements | (15,061 | ) | — | ||||||
Total net change in unrealized appreciation (depreciation) | (914,348 | ) | (484,640 | ) | |||||
Net realized and unrealized gain (loss) | (783,187 | ) | (431,422 | ) | |||||
Net increase (decrease) in net assets resulting from operations | $ | (367,807 | ) | $ | (368,281 | ) | |||
* Net of foreign withholding taxes of | $ | 10,754 | $ | 158 | |||||
** Net of foreign capital gains taxes of | $ | 5,693 | $ | — | |||||
† Includes net change in unrealized appreciation (depreciation) of foreign capital gains taxes of | $ | 11,908 | $ | — | |||||
^ Includes interest on line of credit of | $ | — | $ | 10 |
The accompanying notes are an integral part of these financial statements.
66 Semi-Annual Report
Lazard US | |||||||||
Lazard | Short Duration | ||||||||
US Corporate | Fixed Income | ||||||||
Income Portfolio | Portfolio | ||||||||
$ | 6,037,691 | $ | 343,697 | ||||||
422,418 | — | ||||||||
6,460,109 | 343,697 | ||||||||
819,954 | 102,731 | ||||||||
50,061 | 18,617 | ||||||||
35,072 | 24,848 | ||||||||
33,151 | 18,175 | ||||||||
18,440 | 25,247 | ||||||||
11,180 | 6,226 | ||||||||
9,724 | 4,627 | ||||||||
8,743 | 4,268 | ||||||||
4,732 | 33 | ||||||||
9,662 | 4,296 | ||||||||
1,000,719 | 209,068 | ||||||||
(174,383 | ) | (44,155 | ) | ||||||
826,336 | 164,913 | ||||||||
5,633,773 | 178,784 | ||||||||
859,193 | 240,629 | ||||||||
— | — | ||||||||
— | — | ||||||||
— | — | ||||||||
— | — | ||||||||
859,193 | 240,629 | ||||||||
(897,367 | ) | (496,335 | ) | ||||||
— | — | ||||||||
— | — | ||||||||
— | — | ||||||||
(897,367 | ) | (496,335 | ) | ||||||
(38,174 | ) | (255,706 | ) | ||||||
$ | 5,595,599 | $ | (76,922 | ) | |||||
— | — | ||||||||
— | — | ||||||||
— | — | ||||||||
— | — |
Semi-Annual Report 67
The Lazard Funds, Inc. Statements of Changes in Net Assets
Lazard Emerging Markets Debt Portfolio | ||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 415,380 | $ | 1,721,818 | ||||
Net realized gain (loss) | 131,161 | (3,495,212 | ) | |||||
Net change in unrealized appreciation (depreciation) | (914,348 | ) | (1,397,976 | ) | ||||
Net increase (decrease) in net assets resulting from operations | (367,807 | ) | (3,171,370 | ) | ||||
Distributions to shareholders (Note 2(g)) | ||||||||
Net investment income and net realized gains | ||||||||
Institutional Shares | (402,707 | ) | — | |||||
Open Shares | (7,069 | ) | — | |||||
R6 Shares | (23 | ) | — | |||||
Return of capital | ||||||||
Institutional Shares | — | (1,538,228 | ) | |||||
Open Shares | — | (14,630 | ) | |||||
R6 Shares | — | (41 | ) | |||||
Net decrease in net assets resulting from distributions | (409,799 | ) | (1,552,899 | ) | ||||
Capital stock transactions | ||||||||
Net proceeds from sales | ||||||||
Institutional Shares | 1,643,664 | 6,071,916 | ||||||
Open Shares | 19,320 | 138,222 | ||||||
Net proceeds from reinvestment of distributions Institutional Shares | 388,780 | 1,412,389 | ||||||
Open Shares | 6,049 | 12,838 | ||||||
R6 Shares | 23 | 41 | ||||||
Cost of shares redeemed | ||||||||
Institutional Shares | (2,361,343 | ) | (71,755,710 | ) | ||||
Open Shares | (7,666 | ) | (268,240 | ) | ||||
Net increase (decrease) in net assets from capital stock transactions | (311,173 | ) | (64,388,544 | ) | ||||
Total increase (decrease) in net assets | (1,088,779 | ) | (69,112,813 | ) | ||||
Net assets at beginning of period | 22,278,654 | 91,391,467 | ||||||
Net assets at end of period | $ | 21,189,875 | $ | 22,278,654 |
The accompanying notes are an integral part of these financial statements.
68 Semi-Annual Report
Lazard Global Fixed Income Portfolio | Lazard US Corporate Income Portfolio | |||||||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||||||
$ | 63,141 | $ | 126,368 | $ | 5,633,773 | $ | 12,080,958 | |||||||||
53,218 | 323,617 | 859,193 | (1,161,985 | ) | ||||||||||||
(484,640 | ) | 430,612 | (897,367 | ) | 2,196,558 | |||||||||||
(368,281 | ) | 880,597 | 5,595,599 | 13,115,531 | ||||||||||||
(63,686 | ) | (309,020 | ) | (5,637,478 | ) | (12,087,050 | ) | |||||||||
(216 | ) | (1,683 | ) | (67,751 | ) | (150,720 | ) | |||||||||
— | — | (23 | ) | (47 | ) | |||||||||||
— | — | — | — | |||||||||||||
— | — | — | — | |||||||||||||
— | — | — | — | |||||||||||||
(63,902 | ) | (310,703 | ) | (5,705,252 | ) | (12,237,817 | ) | |||||||||
1,969,699 | 5,232,553 | 16,000,741 | 45,657,501 | |||||||||||||
53,954 | 6,239 | 259,101 | 1,472,978 | |||||||||||||
63,641 | 308,584 | 5,494,682 | 11,769,610 | |||||||||||||
216 | 1,683 | 53,701 | 115,990 | |||||||||||||
— | — | 23 | 47 | |||||||||||||
(2,094,740 | ) | (3,065,810 | ) | (22,340,554 | ) | (56,900,578 | ) | |||||||||
(61,096 | ) | (21,740 | ) | (92,822 | ) | (2,013,457 | ) | |||||||||
(68,326 | ) | 2,461,509 | (625,128 | ) | 102,091 | |||||||||||
(500,509 | ) | 3,031,403 | (734,781 | ) | 979,805 | |||||||||||
9,546,163 | 6,514,760 | 302,369,591 | 301,389,786 | |||||||||||||
$ | 9,045,654 | $ | 9,546,163 | $ | 301,634,810 | $ | 302,369,591 |
Semi-Annual Report 69
Lazard Emerging Markets Debt Portfolio | ||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||
Shares issued and redeemed | ||||||||
Institutional Shares | ||||||||
Shares outstanding at beginning of period | 1,364,341 | 5,641,531 | • | |||||
Shares sold | 106,613 | 427,424 | • | |||||
Shares issued to shareholders from reinvestment of distributions | 25,108 | 94,410 | • | |||||
Shares redeemed | (153,364 | ) | (4,799,024 | )• | ||||
Net increase (decrease) | (21,643 | ) | (4,277,190 | )• | ||||
Shares outstanding at end of period | 1,342,698 | 1,364,341 | ||||||
Open Shares | ||||||||
Shares outstanding at beginning of period | 24,524 | 32,702 | • | |||||
Shares sold | 1,235 | 9,412 | • | |||||
Shares issued to shareholders from reinvestment of distributions | 387 | 859 | • | |||||
Shares redeemed | (490 | ) | (18,449 | )• | ||||
Net increase (decrease) | 1,132 | (8,178 | )• | |||||
Shares outstanding at end of period | 25,656 | 24,524 | ||||||
R6 Shares | ||||||||
Shares outstanding at beginning of period | 71 | 69 | • | |||||
Shares sold | — | — | ||||||
Shares issued to shareholders from reinvestment of distributions | 2 | 2 | • | |||||
Net increase (decrease) | 2 | 2 | • | |||||
Shares outstanding at end of period | 73 | 71 |
• | Shares and share transactions of Lazard Emerging Markets Debt Portfolio and Lazard US Corporate Income Portfolio were adjusted to reflect a 1:2 and 1:4 reverse share split, respectively, effective November 17, 2020. |
The accompanying notes are an integral part of these financial statements.
70 Semi-Annual Report
Lazard Global Fixed Income Portfolio | Lazard US Corporate Income Portfolio | |||||||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||||||
989,793 | �� | 710,971 | 15,080,446 | 15,103,284 | • | |||||||||||
215,580 | 577,637 | 813,798 | 2,383,359 | • | ||||||||||||
6,904 | 32,641 | 279,003 | 617,982 | • | ||||||||||||
(226,579 | ) | (331,456 | ) | (1,134,310 | ) | (3,024,179 | )• | |||||||||
(4,095 | ) | 278,822 | (41,509 | ) | (22,838 | )• | ||||||||||
985,698 | 989,793 | 15,038,937 | 15,080,446 | |||||||||||||
5,032 | 6,518 | 187,617 | 210,905 | • | ||||||||||||
5,646 | 684 | 13,110 | 75,398 | • | ||||||||||||
23 | 178 | 2,714 | 6,070 | • | ||||||||||||
(6,464 | ) | (2,348 | ) | (4,685 | ) | (104,756 | )• | |||||||||
(795 | ) | (1,486 | ) | 11,139 | (23,288 | )• | ||||||||||
4,237 | 5,032 | 198,756 | 187,617 | |||||||||||||
— | — | 61 | 58 | • | ||||||||||||
— | — | — | — | |||||||||||||
— | — | 1 | 3 | • | ||||||||||||
— | — | 1 | 3 | • | ||||||||||||
— | — | 62 | 61 |
Semi-Annual Report 71
Lazard US Short Duration Fixed Income Portfolio | ||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 178,784 | $ | 1,153,865 | ||||
Net realized gain (loss) | 240,629 | 720,754 | ||||||
Net change in unrealized appreciation (depreciation) | (496,335 | ) | 455,774 | |||||
Net increase (decrease) in net assets resulting from operations | (76,922 | ) | 2,330,393 | |||||
Distributions to shareholders (Note 2(g)) | ||||||||
Net investment income and net realized gains | ||||||||
Institutional Shares | (177,813 | ) | (1,153,515 | ) | ||||
Open Shares | (27 | ) | (282 | ) | ||||
Net decrease in net assets resulting from distributions | (177,840 | ) | (1,153,797 | ) | ||||
Capital stock transactions | ||||||||
Net proceeds from sales | ||||||||
Institutional Shares | 5,680,641 | 25,806,667 | ||||||
Open Shares | 4,189 | 56,978 | ||||||
Net proceeds from reinvestment of distributions | ||||||||
Institutional Shares | 161,992 | 1,072,523 | ||||||
Open Shares | 27 | 273 | ||||||
Cost of shares redeemed | ||||||||
Institutional Shares | (9,861,627 | ) | (36,405,739 | ) | ||||
Open Shares | (9,378 | ) | (43,603 | ) | ||||
Net increase (decrease) in net assets from capital stock transactions | (4,024,156 | ) | (9,512,901 | ) | ||||
Total increase (decrease) in net assets | (4,278,918 | ) | (8,336,305 | ) | ||||
Net assets at beginning of period | 87,774,908 | 96,111,213 | ||||||
Net assets at end of period | $ | 83,495,990 | $ | 87,774,908 |
The accompanying notes are an integral part of these financial statements.
72 Semi-Annual Report
Lazard US Short Duration Fixed Income Portfolio | ||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||
Shares issued and redeemed | ||||||||
Institutional Shares | ||||||||
Shares outstanding at beginning of period | 8,867,736 | 9,832,361 | ||||||
Shares sold | 575,459 | 2,607,117 | ||||||
Shares issued to shareholders from reinvestment of distributions | 16,396 | 108,370 | ||||||
Shares redeemed | (998,097 | ) | (3,680,112 | ) | ||||
Net increase (decrease) | (406,242 | ) | (964,625 | ) | ||||
Shares outstanding at end of period | 8,461,494 | 8,867,736 | ||||||
Open Shares | ||||||||
Shares outstanding at beginning of period | 2,964 | 1,587 | ||||||
Shares sold | 423 | 5,762 | ||||||
Shares issued to shareholders from reinvestment of distributions | 3 | 28 | ||||||
Shares redeemed | (949 | ) | (4,413 | ) | ||||
Net increase (decrease) | (523 | ) | 1,377 | |||||
Shares outstanding at end of period | 2,441 | 2,964 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 73
The Lazard Funds, Inc. Financial Highlights
LAZARD EMERGING MARKETS DEBT PORTFOLIO
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | |||||||||||||||||||||||
each period | 6/30/21† | 12/31/20* | 12/31/19* | 12/31/18* | 12/31/17* | 12/31/16* | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.04 | $ | 16.10 | $ | 14.72 | $ | 16.86 | $ | 15.80 | $ | 15.42 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.30 | 0.64 | 0.80 | 0.92 | 0.92 | 0.96 | ^ | ||||||||||||||||||
Net realized and unrealized gain (loss) | (0.56 | ) | (0.18 | ) | 1.36 | (2.14 | ) | 1.06 | 0.38 | ||||||||||||||||
Total from investment operations | (0.26 | ) | 0.46 | 2.16 | (1.22 | ) | 1.98 | 1.34 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.30 | ) | — | (0.38 | ) | (0.44 | ) | (0.86 | ) | (0.38 | ) | ||||||||||||||
Return of capital | — | (0.52 | ) | (0.40 | ) | (0.48 | ) | (0.06 | ) | (0.58 | ) | ||||||||||||||
Total distributions | (0.30 | ) | (0.52 | ) | (0.78 | ) | (0.92 | ) | (0.92 | ) | (0.96 | ) | |||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 15.48 | $ | 16.04 | $ | 16.10 | $ | 14.72 | $ | 16.86 | $ | 15.80 | |||||||||||||
Total Return (c) | –1.63 | % | 3.19 | % | 15.03 | % | –7.45 | % | 12.69 | % | 8.64 | %^ | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 20,787 | $ | 21,880 | $ | 90,858 | $ | 143,015 | $ | 280,808 | $ | 240,833 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.85 | % | 0.92 | % | 0.98 | % | 0.93 | % | 0.93 | % | 0.96 | %^ | |||||||||||||
Gross expenses | 2.15 | % | 1.57 | % | 1.08 | % | 0.93 | % | 0.93 | % | 0.96 | % | |||||||||||||
Net investment income (loss) | 3.89 | % | 4.24 | % | 5.15 | % | 5.78 | % | 5.52 | % | 5.90 | %^ | |||||||||||||
Portfolio turnover rate | 46 | % | 133 | % | 106 | % | 97 | % | 88 | % | 118 | % |
The accompanying notes are an integral part of these financial statements.
74 Semi-Annual Report
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | |||||||||||||||||||||||
each period | 6/30/21† | 12/31/20* | 12/31/19* | 12/31/18* | 12/31/17* | 12/31/16* | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 16.21 | $ | 16.26 | $ | 14.86 | $ | 17.00 | $ | 15.96 | $ | 15.58 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.29 | 0.61 | 0.78 | 0.94 | 0.88 | 0.92 | ^ | ||||||||||||||||||
Net realized and unrealized gain (loss) | (0.58 | ) | (0.15 | ) | 1.38 | (2.20 | ) | 1.02 | 0.38 | ||||||||||||||||
Total from investment operations | (0.29 | ) | 0.46 | 2.16 | (1.26 | ) | 1.90 | 1.30 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.28 | ) | — | (0.38 | ) | (0.40 | ) | (0.80 | ) | (0.36 | ) | ||||||||||||||
Return of capital | — | (0.51 | ) | (0.38 | ) | (0.48 | ) | (0.06 | ) | (0.56 | ) | ||||||||||||||
Total distributions | (0.28 | ) | (0.51 | ) | (0.76 | ) | (0.88 | ) | (0.86 | ) | (0.92 | ) | |||||||||||||
Net asset value, end of period | $ | 15.64 | $ | 16.21 | $ | 16.26 | $ | 14.86 | $ | 17.00 | $ | 15.96 | |||||||||||||
Total Return (c) | –1.75 | % | 3.11 | % | 14.85 | % | –7.59 | % | 12.16 | % | 8.27 | %^ | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 401 | $ | 397 | $ | 532 | $ | 670 | $ | 6,520 | $ | 6,801 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 1.05 | % | 1.02 | % | 1.18 | % | 1.20 | % | 1.22 | % | 1.28 | %^ | |||||||||||||
Gross expenses | 3.14 | % | 2.59 | % | 2.91 | % | 1.62 | % | 1.36 | % | 1.40 | % | |||||||||||||
Net investment income (loss) | 3.70 | % | 4.05 | % | 4.91 | % | 5.49 | % | 5.21 | % | 5.59 | %^ | |||||||||||||
Portfolio turnover rate | 46 | % | 133 | % | 106 | % | 97 | % | 88 | % | 118 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 75
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | For the Period 7/28/16# to | ||||||||||||||||||||||
each period | 6/30/21† | 12/31/20* | 12/31/19* | 12/31/18* | 12/31/17* | 12/31/16 | |||||||||||||||||||
R6 Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 17.19 | $ | 17.28 | $ | 15.76 | $ | 17.76 | $ | 15.80 | $ | 16.68 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.33 | 0.41 | 0.86 | 0.96 | 0.90 | 0.40 | ^ | ||||||||||||||||||
Net realized and unrealized gain (loss) | (0.60 | ) | 0.09 | 1.50 | (2.24 | ) | 1.08 | (0.88 | ) | ||||||||||||||||
Total from investment operations | (0.27 | ) | 0.50 | 2.36 | (1.28 | ) | 1.98 | (0.48 | ) | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.32 | ) | — | (0.40 | ) | (0.22 | ) | (0.02 | ) | (0.16 | ) | ||||||||||||||
Return of capital | — | (0.59 | ) | (0.44 | ) | (0.50 | ) | — | (b) | (0.24 | ) | ||||||||||||||
Total distributions | (0.32 | ) | (0.59 | ) | (0.84 | ) | (0.72 | ) | (0.02 | ) | (0.40 | ) | |||||||||||||
Net asset value, end of period | $ | 16.60 | $ | 17.19 | $ | 17.28 | $ | 15.76 | $ | 17.76 | $ | 15.80 | |||||||||||||
Total Return (c) | –1.54 | % | 3.30 | % | 15.22 | % | –7.24 | % | 12.61 | % | –2.93 | %^ | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1 | $ | 1 | $ | 1 | $ | 99,952 | $ | 1 | $ | 1,145 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.80 | % | 0.86 | % | 0.93 | % | 0.90 | % | 0.90 | % | 0.90 | %^ | |||||||||||||
Gross expenses | 277.81 | % | 265.72 | % | 1.09 | % | 0.94 | % | 43.88 | % | 2.21 | % | |||||||||||||
Net investment income (loss) | 3.70 | % | 2.60 | % | 5.18 | % | 5.97 | % | 5.71 | % | 5.73 | %^ | |||||||||||||
Portfolio turnover rate | 46 | % | 133 | % | 106 | % | 97 | % | 88 | % | 118 | % |
The accompanying notes are an integral part of these financial statements.
76 Semi-Annual Report
† | Unaudited. |
* | On November 17, 2020, the Portfolio effected a 1:2 reverse share split. All per share data prior to November 17, 2020 has been adjusted to reflect the reverse share split. |
# | The inception date for the R6 Shares was July 28, 2016. |
^ | Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the period. The amount of the reimbursement was less than $0.005 per share. For Institutional Shares, there was a 0.14% impact on the total return and the impact on net expenses and net investment income (loss) ratios of the Portfolio was less than 0.005%. For Open and R6 Shares, there was no impact on the total return and the net expenses and net investment income (loss) ratios of the Portfolio would be unchanged as the change to the period custodian fees was offset against the period expense waivers/reimbursements with no impact to net expenses or net investment income (loss). |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 77
LAZARD GLOBAL FIXED INCOME PORTFOLIO
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | |||||||||||||||||||||||
each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 9.60 | $ | 9.08 | $ | 8.65 | $ | 9.04 | $ | 8.57 | $ | 8.74 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.06 | 0.14 | 0.19 | 0.20 | 0.20 | 0.20 | |||||||||||||||||||
Net realized and unrealized gain (loss) | (0.46 | ) | 0.72 | 0.43 | (0.38 | ) | 0.47 | (0.17 | ) | ||||||||||||||||
Total from investment operations | (0.40 | ) | 0.86 | 0.62 | (0.18 | ) | 0.67 | 0.03 | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.15 | ) | (0.06 | ) | (0.10 | ) | — | (0.12 | ) | ||||||||||||||
Net realized gains | — | (0.19 | ) | — | — | — | — | ||||||||||||||||||
Return of capital | — | — | (0.13 | ) | (0.11 | ) | (0.20 | ) | (0.08 | ) | |||||||||||||||
Total distributions | (0.06 | ) | (0.34 | ) | (0.19 | ) | (0.21 | ) | (0.20 | ) | (0.20 | ) | |||||||||||||
Net asset value, end of period | $ | 9.14 | $ | 9.60 | $ | 9.08 | $ | 8.65 | $ | 9.04 | $ | 8.57 | |||||||||||||
Total Return (b) | –4.14 | % | 9.51 | % | 7.25 | % | –2.06 | % | 7.87 | % | 0.22 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 9,007 | $ | 9,498 | $ | 6,456 | $ | 5,495 | $ | 4,705 | $ | 4,266 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.72 | % | 0.75 | % | |||||||||||||
Gross expenses | 2.31 | % | 2.73 | % | 3.51 | % | 3.61 | % | 4.39 | % | 4.70 | % | |||||||||||||
Net investment income (loss) | 1.34 | % | 1.53 | % | 2.14 | % | 2.33 | % | 2.23 | % | 2.18 | % | |||||||||||||
Portfolio turnover rate | 39 | % | 65 | % | 65 | % | 60 | % | 42 | % | 47 | % |
The accompanying notes are an integral part of these financial statements.
78 Semi-Annual Report
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | |||||||||||||||||||||||
each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 9.60 | $ | 9.08 | $ | 8.65 | $ | 9.04 | $ | 8.57 | $ | 8.74 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.05 | 0.12 | 0.17 | 0.18 | 0.17 | 0.17 | |||||||||||||||||||
Net realized and unrealized gain (loss) | (0.46 | ) | 0.71 | 0.43 | (0.39 | ) | 0.47 | (0.17 | ) | ||||||||||||||||
Total from investment operations | (0.41 | ) | 0.83 | 0.60 | (0.21 | ) | 0.64 | — | (d) | ||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.05 | ) | (0.12 | ) | (0.06 | ) | (0.08 | ) | — | (0.10 | ) | ||||||||||||||
Net realized gains | — | (0.19 | ) | — | — | — | — | ||||||||||||||||||
Return of capital | — | — | (0.11 | ) | (0.10 | ) | (0.17 | ) | (0.07 | ) | |||||||||||||||
Total distributions | (0.05 | ) | (0.31 | ) | (0.17 | ) | (0.18 | ) | (0.17 | ) | (0.17 | ) | |||||||||||||
Net asset value, end of period | $ | 9.14 | $ | 9.60 | $ | 9.08 | $ | 8.65 | $ | 9.04 | $ | 8.57 | |||||||||||||
Total Return (b) | –4.32 | % | 9.23 | % | 6.98 | % | –2.31 | % | 7.55 | % | –0.07 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 39 | $ | 48 | $ | 59 | $ | 33 | $ | 34 | $ | 34 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 0.95 | % | 0.95 | % | 0.95 | % | 0.98 | % | 1.02 | % | 1.05 | % | |||||||||||||
Gross expenses | 12.55 | % | 10.32 | % | 27.52 | % | 38.42 | % | 42.88 | % | 27.52 | % | |||||||||||||
Net investment income (loss) | 1.07 | % | 1.31 | % | 1.88 | % | 2.08 | % | 1.95 | % | 1.88 | % | |||||||||||||
Portfolio turnover rate | 39 | % | 65 | % | 65 | % | 60 | % | 42 | % | 47 | % |
† | Unaudited. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(c) | Annualized for a period of less than one year. |
(d) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 79
LAZARD US CORPORATE INCOME PORTFOLIO
Selected data for a share of capital stock | Six Months | ||||||||||||||||||||||||
outstanding throughout | Ended | Year Ended | |||||||||||||||||||||||
each period | 6/30/21† | 12/31/20* | 12/31/19* | 12/31/18* | 12/31/17* | 12/31/16* | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 19.80 | $ | 19.68 | $ | 18.16 | $ | 19.56 | $ | 19.48 | $ | 18.56 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.37 | 0.80 | 0.88 | 0.88 | 0.88 | 0.92 | |||||||||||||||||||
Net realized and unrealized gain (loss) | (0.01 | ) | 0.13 | 1.52 | (1.40 | ) | 0.08 | 0.92 | |||||||||||||||||
Total from investment operations | 0.36 | 0.93 | 2.40 | (0.52 | ) | 0.96 | 1.84 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.37 | ) | (0.81 | ) | (0.88 | ) | (0.88 | ) | (0.88 | ) | (0.92 | ) | |||||||||||||
Total distributions | (0.37 | ) | (0.81 | ) | (0.88 | ) | (0.88 | ) | (0.88 | ) | (0.92 | ) | |||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 19.79 | $ | 19.80 | $ | 19.68 | $ | 18.16 | $ | 19.56 | $ | 19.48 | |||||||||||||
Total Return (c) | 1.86 | % | 4.96 | % | 13.34 | % | –2.73 | % | 5.09 | % | 10.09 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 297,681 | $ | 298,636 | $ | 297,219 | $ | 308,285 | $ | 344,508 | $ | 302,997 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | |||||||||||||
Gross expenses | 0.67 | % | 0.67 | % | 0.67 | % | 0.64 | % | 0.67 | % | 0.69 | % | |||||||||||||
Net investment income (loss) | 3.78 | % | 4.17 | % | 4.47 | % | 4.65 | % | 4.57 | % | 4.78 | % | |||||||||||||
Portfolio turnover rate | 20 | % | 26 | % | 21 | % | 16 | % | 21 | % | 14 | % |
The accompanying notes are an integral part of these financial statements.
80 Semi-Annual Report
Selected data for a share of capital stock | Six Months | ||||||||||||||||||||||||
outstanding throughout | Ended | Year Ended | |||||||||||||||||||||||
each period | 6/30/21† | 12/31/20* | 12/31/19* | 12/31/18* | 12/31/17* | 12/31/16* | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 19.90 | $ | 19.76 | $ | 18.28 | $ | 19.64 | $ | 19.56 | $ | 18.64 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.35 | 0.75 | 0.80 | 0.84 | 0.84 | 0.84 | |||||||||||||||||||
Net realized and unrealized gain (loss) | (0.01 | ) | 0.15 | 1.48 | (1.36 | ) | 0.08 | 0.96 | |||||||||||||||||
Total from investment operations | 0.34 | 0.90 | 2.28 | (0.52 | ) | 0.92 | 1.80 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.35 | ) | (0.76 | ) | (0.80 | ) | (0.84 | ) | (0.84 | ) | (0.88 | ) | |||||||||||||
Total distributions | (0.35 | ) | (0.76 | ) | (0.80 | ) | (0.84 | ) | (0.84 | ) | (0.88 | ) | |||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | ||||||||||||||||||
Net asset value, end of period | $ | 19.89 | $ | 19.90 | $ | 19.76 | $ | 18.28 | $ | 19.64 | $ | 19.56 | |||||||||||||
Total Return (c) | 1.74 | % | 4.80 | % | 12.74 | % | –2.78 | % | 4.77 | % | 9.74 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 3,953 | $ | 3,733 | $ | 4,170 | $ | 4,314 | $ | 5,708 | $ | 7,618 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.80 | % | 0.80 | % | 0.83 | % | 0.85 | % | 0.85 | % | 0.85 | % | |||||||||||||
Gross expenses | 1.01 | % | 1.03 | % | 1.19 | % | 1.11 | % | 1.13 | % | 1.18 | % | |||||||||||||
Net investment income (loss) | 3.53 | % | 3.94 | % | 4.18 | % | 4.34 | % | 4.28 | % | 4.44 | % | |||||||||||||
Portfolio turnover rate | 20 | % | 26 | % | 21 | % | 16 | % | 21 | % | 14 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 81
Selected data for a share of capital stock | Six Months | For the Period | |||||||||||||||||||||||
outstanding throughout | Ended | Year Ended | 11/3/16# to | ||||||||||||||||||||||
each period | 6/30/21† | 12/31/20* | 12/31/19* | 12/31/18* | 12/31/17* | 12/31/16 | |||||||||||||||||||
R6 Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 19.88 | $ | 19.76 | $ | 18.68 | $ | 19.56 | $ | 19.48 | $ | 19.36 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.36 | 0.81 | 0.92 | 0.92 | 0.88 | 0.16 | |||||||||||||||||||
Net realized and unrealized gain (loss) | — | 0.11 | 1.04 | (1.40 | ) | 0.08 | 0.12 | ||||||||||||||||||
Total from investment operations | 0.36 | 0.92 | 1.96 | (0.48 | ) | 0.96 | 0.28 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.37 | ) | (0.80 | ) | (0.88 | ) | (0.40 | ) | (0.88 | ) | (0.16 | ) | |||||||||||||
Total distributions | (0.37 | ) | (0.80 | ) | (0.88 | ) | (0.40 | ) | (0.88 | ) | (0.16 | ) | |||||||||||||
Net asset value, end of period | $ | 19.87 | $ | 19.88 | $ | 19.76 | $ | 18.68 | $ | 19.56 | $ | 19.48 | |||||||||||||
Total Return (c) | 1.85 | % | 4.89 | % | 10.67 | % | –2.43 | %(e) | 5.09 | % | 1.37 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 1 | $ | 1 | $ | 1 | $ | 1 | $ | 1,783 | $ | 1,697 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | |||||||||||||
Gross expenses | 246.51 | % | 256.05 | % | 858.55 | % | 4.62 | % | 1.69 | % | 1.73 | % | |||||||||||||
Net investment income (loss) | 3.67 | % | 4.22 | % | 4.55 | % | 4.61 | % | 4.58 | % | 4.71 | % | |||||||||||||
Portfolio turnover rate | 20 | % | 26 | % | 21 | % | 16 | % | 21 | % | 14 | % |
† | Unaudited. |
* | On November 17, 2020, the Portfolio effected a 1:4 reverse share split. All per share data prior to November 17, 2020 has been adjusted to reflect the reverse share split. |
# | The inception date for the R6 Shares was November 3, 2016. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year except for non-recurring expenses. |
(e) | The Portfolio received settlement proceeds from a foreign exchange trading class action lawsuit. The proceeds from the settlement represented a realized gain and were recorded in the period received. There was a 0.62% impact on the total return of the Portfolio’s R6 Shares. |
The accompanying notes are an integral part of these financial statements.
82 Semi-Annual Report
LAZARD US SHORT DURATION FIXED INCOME PORTFOLIO
Selected data for a share of capital stock | Six Months | ||||||||||||||||||||||||
outstanding throughout | Ended | Year Ended | |||||||||||||||||||||||
each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 9.89 | $ | 9.77 | $ | 9.70 | $ | 9.79 | $ | 9.86 | $ | 9.89 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.02 | 0.12 | 0.21 | 0.19 | 0.14 | 0.13 | |||||||||||||||||||
Net realized and unrealized gain (loss) | (0.03 | ) | 0.12 | 0.07 | (0.09 | ) | (0.07 | ) | (0.03 | ) | |||||||||||||||
Total from investment operations | (0.01 | ) | 0.24 | 0.28 | 0.10 | 0.07 | 0.10 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.02 | ) | (0.12 | ) | (0.20 | ) | (0.17 | ) | (0.11 | ) | (0.09 | ) | |||||||||||||
Return of capital | — | — | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.04 | ) | |||||||||||||||
Total distributions | (0.02 | ) | (0.12 | ) | (0.21 | ) | (0.19 | ) | (0.14 | ) | (0.13 | ) | |||||||||||||
Net asset value, end of period | $ | 9.86 | $ | 9.89 | $ | 9.77 | $ | 9.70 | $ | 9.79 | $ | 9.86 | |||||||||||||
Total Return (b) | –0.09 | % | 2.46 | % | 2.93 | % | 1.08 | % | 0.72 | % | 1.00 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 83,472 | $ | 87,746 | $ | 96,096 | $ | 116,276 | $ | 100,390 | $ | 103,175 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | 0.40 | % | |||||||||||||
Gross expenses | 0.50 | % | 0.47 | % | 0.45 | % | 0.43 | % | 0.43 | % | 0.50 | % | |||||||||||||
Net investment income (loss) | 0.44 | % | 1.21 | % | 2.18 | % | 2.00 | % | 1.43 | % | 1.30 | % | |||||||||||||
Portfolio turnover rate | 48 | % | 97 | % | 175 | % | 170 | % | 108 | % | 157 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 83
Selected data for a share of capital stock | Six Months | ||||||||||||||||||||||||
outstanding throughout | Ended | Year Ended | |||||||||||||||||||||||
each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 9.90 | $ | 9.78 | $ | 9.71 | $ | 9.79 | $ | 9.87 | $ | 9.90 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.01 | 0.09 | 0.19 | 0.16 | 0.11 | 0.10 | |||||||||||||||||||
Net realized and unrealized gain (loss) | (0.03 | ) | 0.12 | 0.06 | (0.08 | ) | (0.08 | ) | (0.03 | ) | |||||||||||||||
Total from investment operations | (0.02 | ) | 0.21 | 0.25 | 0.08 | 0.03 | 0.07 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.01 | ) | (0.09 | ) | (0.17 | ) | (0.14 | ) | (0.09 | ) | (0.07 | ) | |||||||||||||
Return of capital | — | — | (0.01 | ) | (0.02 | ) | (0.02 | ) | (0.03 | ) | |||||||||||||||
Total distributions | (0.01 | ) | (0.09 | ) | (0.18 | ) | (0.16 | ) | (0.11 | ) | (0.10 | ) | |||||||||||||
Net asset value, end of period | $ | 9.87 | $ | 9.90 | $ | 9.78 | $ | 9.71 | $ | 9.79 | $ | 9.87 | |||||||||||||
Total Return (b) | –0.21 | % | 2.20 | % | 2.64 | % | 0.88 | % | 0.32 | % | 0.70 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 24 | $ | 29 | $ | 16 | $ | 37 | $ | 25 | $ | 44 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 0.65 | % | 0.65 | % | 0.69 | % | 0.70 | % | 0.70 | % | 0.70 | % | |||||||||||||
Gross expenses | 17.53 | % | 14.74 | % | 51.53 | % | 38.00 | % | 33.88 | % | 31.22 | % | |||||||||||||
Net investment income (loss) | 0.18 | % | 0.96 | % | 1.91 | % | 1.68 | % | 1.13 | % | 1.00 | % | |||||||||||||
Portfolio turnover rate | 48 | % | 97 | % | 175 | % | 170 | % | 108 | % | 157 | % |
† | Unaudited. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(c) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
84 Semi-Annual Report
The Lazard Funds, Inc. Notes to Financial Statements
June 30, 2021 (unaudited)
1. Organization
The Lazard Funds, Inc. was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of June 30, 2021, the Fund was comprised of thirty no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of the Lazard Emerging Markets Debt Portfolio (“Emerging Markets Debt”), the Lazard Global Fixed Income Portfolio (“Global Fixed Income”), the Lazard US Corporate Income Portfolio (“US Corporate Income”), and the Lazard US Short Duration Fixed Income Portfolio (“US Short Duration Fixed Income”). The financial statements of the other twenty-six Portfolios are presented separately.
The Portfolios, other than Emerging Markets Debt Portfolio, are operated as “diversified” funds, as defined in the 1940 Act.
Each Portfolio currently offers Institutional Shares and Open Shares, and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum investment requirements; eligibility requirements for R6 Shares; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Fund’s prospectus).
2. Significant Accounting Policies
The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in accordance with Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:
(a) Valuation of Investments—Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by independent pricing services which are based on, among other things, trading in securities with similar characteristics, brokers’ quotations and/or a matrix system which considers such factors as other security prices, yields and maturities. Over the counter swap agreements are valued by an independent pricing service and centrally cleared swaps are valued at the last
Semi-Annual Report 85
reported sale on the clearing exchange. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s net asset value (“NAV”) per share.
Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trading on certain non-US securities exchanges or markets, such as those in Europe and Asia, ordinarily may be completed before the close of business on each business day in New York (i.e., a day on which the New York Stock Exchange (the “NYSE”) is open). In addition, securities trading in a particular non-US country or countries, may not take place on all business days in New York and on which the NAV of a Portfolio is calculated.
If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when a Portfolio’s NAV is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Fund’s Board of Directors (the “Board”). Certain non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of the Portfolio’s assets on days when Portfolio shareholders may not be able to buy or sell Portfolio shares.
The Valuation Committee of the Investment Manager, which is subject to the oversight of the Board, may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio management team also will be considered.
The effect of using fair value pricing is that the NAV of a Portfolio will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead of being deter-
86 Semi-Annual Report
mined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.
(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Interest income is accrued daily. A Portfolio amortizes premiums and accretes discounts on fixed-income securities using the effective yield method and mortgage-backed securities using the level yield method.
A Portfolio may be subject to taxes imposed by non-US countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized and/or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income earned or capital gains (realized and/or unrealized) from the applicable portfolio securities.
(c) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Fund are maintained in US dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.
The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments.
A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Daily fluctuations in the value of forward currency contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, the Portfolio records a realized
Semi-Annual Report 87
gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed. Net realized gain (loss) on foreign currency transactions and forward currency contracts represent net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency translations reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.
During the period ended June 30, 2021, the Emerging Markets Debt and Global Fixed Income Portfolios traded in forward currency contracts.
(d) Futures Contracts—Futures contracts are valued at the settlement price on the exchange on which the contract is principally traded. For hedging and investment purposes, certain Portfolios may enter into futures contracts in US domestic markets, or exchanges located outside the United States. Foreign markets may offer advantages such as trading opportunities or arbitrage possibilities not available in the United States. Foreign markets, however, may have greater risk potential than domestic markets. For example, some foreign exchanges are principal markets so that no common clearing facility exists and an investor may look only to the broker for performance of the contract. In addition, any profits a Portfolio might realize in trading could be eliminated by adverse changes in the currency exchange rate, or the Portfolio could incur losses as a result of those changes. Transactions on foreign exchanges may include both commodities which are traded on domestic exchanges and those which are not. Unlike trading on domestic commodity exchanges, trading on foreign commodity exchanges is not regulated by the Commodity Futures Trading Commission.
Engaging in these transactions involves risk of loss to the Portfolio which could adversely affect the value of the Portfolio’s net assets.
88 Semi-Annual Report
Although each of these Portfolios intends to purchase or sell futures contracts only if there is an active market for such contracts, no assurance can be given that a liquid market will exist for any particular contract at any particular time. Many futures exchanges and boards of trade limit the amount of fluctuation permitted in futures contract prices during a single trading day. Once the daily limit has been reached in a particular contract, no trades may be made that day at a price beyond that limit or trading may be suspended for specified periods during the trading day. Futures contract prices could move to the limit for several consecutive trading days with little or no trading, thereby preventing prompt liquidation of futures positions and potentially subjecting the Portfolio to substantial losses.
During the period ended June 30, 2021, the Emerging Markets Debt traded in futures contracts.
(e) Swap Agreements—Interest rate swap agreements involve the exchange by a Portfolio with another party of their respective commitments to pay or receive interest with respect to the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap,” (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor,” (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the counterparty may terminate the swap transaction in whole at zero cost by a predetermined date and time prior to the maturity date, (v) spread locks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different money markets. The change in value, if any, on swap agreements is recorded as unrealized appreciation (depreciation) on swap agreements in a Portfo-
Semi-Annual Report 89
lio’s accompanying Statement of Assets and Liabilities. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreements in a Portfolio’s accompanying Statement of Operations, in addition to any realized gain (loss) recorded upon the termination of swap agreements.
Upon entering into a centrally cleared swap, the Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is shown as cash collateral for swaps in the Statement of Assets and Liabilities. On these transactions, the Portfolio agrees to receive from or pay to the broker variation margin. Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statement of Operations.
During the period ended June 30, 2021, the Emerging Markets Debt Portfolio traded in swap agreements.
(f) Federal Income Taxes—The Fund’s policy is for each Portfolio to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.
At December 31, 2020, the following Portfolios had unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains with no expiration date as follows:
Portfolio | Short-Term | Long-Term | ||||||
Emerging Markets Debt | $ | 18,881,060 | $ | 19,327,250 | ||||
US Corporate Income | 4,145,042 | 4,820,238 | ||||||
US Short Duration Fixed Income | 57,364 | 343,499 |
90 Semi-Annual Report
Under current tax law, post-October capital losses or certain late-year ordinary losses, as defined by the Code, within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the tax year ended December 31, 2020, the following Portfolios elected to defer such losses as follows:
Post-October | Late-Year | |||||||
Capital Loss | Ordinary Loss | |||||||
Portfolio | Deferral | Deferral | ||||||
US Short Duration Fixed Income | $ | — | $ | 2,182 |
For federal income tax purposes, the aggregate cost, aggregate gross unrealized appreciation, aggregate gross unrealized depreciation and the net unrealized appreciation (depreciation) were as follows:
Aggregate | Aggregate | Net | ||||||||||||||
Gross | Gross | Unrealized | ||||||||||||||
Aggregate | Unrealized | Unrealized | Appreciation | |||||||||||||
Portfolio | Cost | Appreciation | Depreciation | (Depreciation) | ||||||||||||
Emerging Markets Debt | $ | 21,323,583 | $ | 768,402 | $ | 1,190,885 | $ | (422,483 | ) | |||||||
Global Fixed Income | 9,035,325 | 299,953 | 231,585 | 68,368 | ||||||||||||
US Corporate Income | 293,182,756 | 9,783,839 | 1,206,310 | 8,577,529 | ||||||||||||
US Short Duration Fixed Income | 82,851,472 | 141,236 | 13,769 | 127,467 |
Management has analyzed the Portfolios’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. Each Portfolio files a US federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
(g) Dividends and Distributions—For each Portfolio, income dividends are normally declared each business day and paid monthly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually,
Semi-Annual Report 91
to shareholders, but may be distributed more frequently. Differences in per share distributions, by class, are generally due to differences in class specific expenses.
Income and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency and fixed-income transactions, distribution redesignations, certain fixed-income securities and expenses, derivatives, wash sales, return of capital distributions, currency straddles and paydown gain/loss. The book/tax differences relating to shareholder distributions may result in reclassifications among certain capital accounts.
(h) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., and Lazard Global Total Return and Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Open Shares. Each Portfolio’s income, expenses (other than class specific expenses) and realized and unrealized gains and losses are allocated proportionally each day between the classes based upon the relative net assets of each class.
(i) Redemption Fee—Until August 15, 2016, the Portfolios, other than the US Short Duration Fixed Income Portfolio, imposed a 1.00% redemption fee (short-term trading fee) on Portfolio shares redeemed less than 30 days after such shares were acquired. The fees were retained by the Portfolios and are included as paid in capital on the Statements of Assets and Liabilities. As of August 15, 2016, redemption fees no longer apply to transactions in Portfolio shares.
(j) Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabili-
92 Semi-Annual Report
ties and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates.
(k) Net Asset Value—The NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. The NAV per share of a class is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.
3. Investment Management, Administration, Custody, Distribution and Transfer Agency Agreements
The Fund, on behalf of the Portfolios, has entered into a management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager manages the investment operations of each Portfolio and the assets of each Portfolio including the purchase, retention and disposition thereof, in accordance with the Portfolio’s investment objectives, policies, and restrictions, and provides the Portfolios with administrative, operational and compliance assistance services. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:
Portfolio | Annual Rate | |||
Emerging Markets Debt | 0.70 | % | ||
Global Fixed Income | 0.50 | |||
US Corporate Income | 0.55 | |||
US Short Duration Fixed Income | 0.25 |
The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse a Portfolio until April 30, 2022 (or such
Semi-Annual Report 93
other date as indicated below) if the aggregate direct expenses of each Portfolio, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Fund” (as defined in Form N-1A), fees and expenses related to filing foreign tax reclaims, and extraordinary expenses, on behalf of the Portfolio, exceed the applicable percentages of the value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name in the table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expenses.
Institutional | Open | R6 | ||||||||||
Portfolio | Shares | Shares | Shares | |||||||||
Emerging Markets Debt | 0.85 | % | 1.05 | % | 0.80 | %(a) | ||||||
Global Fixed Income | 0.70 | 0.95 | N/A | |||||||||
US Corporate Income | 0.55 | 0.80 | 0.55 | (b) | ||||||||
US Short Duration Fixed Income | 0.40 | 0.65 | (c) | N/A |
(a) | From April 30, 2022 to April 30, 2031, the annual rates are 1.10%, 1.35%, and 1.05%, respectively. |
(b) | This agreement will continue in effect until April 30, 2031 for the R6 Shares. |
(c) | This agreement will continue in effect until April 30, 2031 for Open Shares. |
In addition, until April 30, 2022, to the extent the “Total Annual Fund Operating Expenses” (as used in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Fund Operating Expenses of the Portfolio’s Institutional Shares (in each case, not including management fees, custodial fees or other expenses related to the management of the Portfolio’s assets), the Investment Manager will bear the expenses of the R6 Shares in the amount of such excess.
During the period ended June 30, 2021, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:
Institutional Shares | Open Shares | |||||||||||||||
Management | Expenses | Management | Expenses | |||||||||||||
Portfolio | Fees Waived | Reimbursed | Fees Waived | Reimbursed | ||||||||||||
Emerging Markets Debt | $ | 73,449 | $ | 62,752 | $ | 1,358 | $ | 2,695 | ||||||||
Global Fixed Income | 23,392 | 51,919 | 114 | 2,537 | ||||||||||||
US Corporate Income | 169,002 | — | 3,905 | — | ||||||||||||
US Short Duration Fixed Income | 41,932 | — | 33 | 2,190 |
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R6 Shares | ||||||||
Management | Expenses | |||||||
Portfolio | Fees Waived | Reimbursed | ||||||
Emerging Markets Debt | $ | 4 | $ | 1,644 | ||||
US Corporate Income | 3 | 1,473 |
The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.
State Street serves as the Fund’s custodian and provides the Fund with certain administrative services.
In December 2015, State Street announced that it had identified inconsistencies in the way in which clients were invoiced for custody out-of-pocket expenses from 1998 until 2015. The difference between what was charged and what should have been charged, plus interest, was recorded as a reimbursement when determined in 2016. Pursuant to the expense limitations described above, the US Short Duration Fixed Income Portfolio experienced management fee waivers during the year ended December 31, 2016. Accordingly, the reimbursement of out-of-pocket expenses resulted in the reduction in the waiver of management fees for certain Portfolios for the year ended December 31, 2016.
The Fund has a distribution agreement with Lazard Asset Management Securities LLC (the “Distributor”), a wholly-owned subsidiary of the Investment Manager, to serve as the distributor for shares of each Portfolio. The Distributor bears, amongst other things, the cost of preparing and distributing materials used by the Distributor in connection with its offering Portfolio shares and other advertising and promotional expenses.
Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net assets of its Open Shares, for certain distribution activities and providing services to holders of the Portfolio’s Open shares. The Distributor may make payments to third parties such as financial institutions, securities dealers and other industry professionals in respect of these services.
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DST is the Fund’s transfer agent and dividend disbursing agent.
4. Directors’ Compensation
Certain Directors of the Fund are officers of the Investment Manager. For 2021, the annual compensation for each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by all of the funds in the Lazard Fund Complex is: (1) an annual fee of $237,000, (2) an additional annual retainer of $33,700 to the lead Independent Director, and (3) an additional annual fee of $23,500 to the Audit Committee Chair. The Independent Directors (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund) also may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings or incurred in connection with work performed on behalf of Board. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees and expenses are allocated among the active portfolios in the Lazard Fund Complex at a rate of $5,000 per active portfolio with the remainder allocated among the active portfolios on the basis of relative net assets. The Statements of Operations show the Independent Directors’ fees and expenses paid by each Portfolio.
5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments) for the period ended June 30, 2021 were as follows:
Portfolio | Purchases | Sales | ||||||
Emerging Markets Debt | $ | 9,236,836 | $ | 8,642,882 | ||||
Global Fixed Income | 3,682,749 | 3,250,625 | ||||||
US Corporate Income | 59,520,233 | 58,210,759 | ||||||
US Short Duration Fixed Income | — | 9,426,039 |
96 Semi-Annual Report
US Government and Treasury Securities | ||||||||
Portfolio | Purchases | Sales | ||||||
Global Fixed Income | $ | 131,300 | $ | 376,933 | ||||
US Short Duration Fixed Income | 39,908,124 | 32,483,004 |
For the period ended June 30, 2021, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.
6. Line of Credit
The Fund has a $100 million committed line of credit pursuant to an Amended and Restated Loan Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at 1.00% plus the “Applicable Rate,” which is the higher of (a) the Federal Funds Rate plus 10 basis points and (b) the Overnight Bank Funding Rate (OBFR) plus 10 basis points, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the period ended June 30, 2021, the following Portfolios had borrowings under the Agreement as follows:
Portfolio | Average Daily Loan Balance | * | Maximum Daily Loan Outstanding | Weighted Average Interest Rate | Number of Days Borrowings were Outstanding | |||||||||||
Global Fixed Income | $ 105,000 | $ 285,000 | 1.18 | % | 11 |
* | For days borrowings were outstanding. |
Management believes that the fair value of the liabilities under the Agreement is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with the Applicable rate. A Portfolio’s outstanding balance under the Agreement, if any, would be categorized as Level 2.
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7. Investment Risks
Not all risks described below apply to all Portfolios, or may not apply to the same degree for one or more Portfolios compared to one or more other Portfolios. In addition, not all risks applicable to an investment in a Portfolio are described below. Please see the current summary prospectus for the relevant Portfolio(s) or a current Portfolio prospectus for further information regarding a Portfolio’s investment strategy and related risks.
(a) Market Risk—A Portfolio may incur losses due to declines in one or more markets in which it invests. These declines may be the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s). To the extent that such developments impact specific industries, market sectors, countries or geographic regions, a Portfolio’s investments in such industries, market sectors, countries and/or geographic regions can be expected to be particularly affected, especially if such investments are a significant portion of its investment portfolio. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect a Portfolio. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers worldwide. As a result, local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions or other events could have a significant negative impact on global economic and market conditions. The coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses taken by many governments or voluntarily imposed by private parties, including closing borders, restricting travel and imposing prolonged quarantines or similar restrictions, as well as the closure of, or operational changes to, many retail and other businesses, has had negative impacts, and in many cases severe negative impacts, on markets worldwide. It is not known how long such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may be expected to impact a Portfolio and its investments.
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(b) Fixed-Income and Debt Securities Risk—The market value of a debt security may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The debt securities market can be susceptible to increases in volatility and decreases in liquidity. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.
Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity and increased redemptions, and, as a result, the Portfolio may have to liquidate portfolio securities at disadvantageous prices.
A Portfolio’s investments in lower-rated, higher-yielding securities (“junk bonds”) are subject to greater credit risk than its higher-rated investments. Credit risk is the risk that the issuer will not make interest or principal payments, or will not make payments on a timely basis. Non-investment grade securities tend to be more volatile, less liquid and are considered speculative. If there is a decline, or perceived decline, in the credit quality of a debt security (or any guarantor of payment on such security), the security’s value could fall, potentially lowering a Portfolio’s share price. The prices of non-investment grade securities, unlike investment grade debt securities, may fluctuate unpredictably and not necessarily inversely with changes in interest rates. The market for these securities may be less liquid and therefore these securities may be harder to value or sell at an acceptable price, especially during times of market volatility or decline.
Some debt securities may give the issuer the option to call, or redeem, the securities before their maturity, and during a time of declining interest rates, a Portfolio may have to reinvest the proceeds of called or redeemed securities in an investment offering a lower yield (and the Portfolio may not fully benefit from any
Semi-Annual Report 99
increase in the value of its portfolio holdings as a result of declining interest rates).
Adjustable rate provide a Portfolio with a certain degree of protection against rises in interest rates or inflation rates, respectively, although adjustable rate securities will participate in any declines in interest rates and inflation-linked securities can also decline in value based on changes in the relevant periodic adjustment rate. Certain adjustable rate securities, such as those with interest rates that fluctuate directly or indirectly based on multiples of a stated index, are designed to be highly sensitive to changes in interest rates and can subject the holders thereof to extreme reductions of yield and possibly loss of principal. Certain fixed-income securities may be issued at a discount from their face value (such as zero coupon securities) or purchased at a price less than their stated face amount or at a price less than their issue price plus the portion of “original issue discount” previously accrued thereon, i.e., purchased at a “market discount.“The amount of original issue discount and/or market discount on certain obligations may be significant, and accretion of market discount together with original issue discount will cause a Portfolio to realize income prior to the receipt of cash payments with respect to these securities.
(c) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity.
(d) Emerging Market Risk—Emerging market countries generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile and less liquid than more developed mar-
100 Semi-Annual Report
kets. These market conditions may continue or worsen. Investments in these countries may be subject to political, economic, legal, market and currency risks. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.
(e) Foreign Currency Risk—Investments denominated in currencies other than US dollars may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. A Portfolio’s investments denominated in such currencies (particularly currencies of emerging markets countries), as well as any investments in currencies themselves, could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. Irrespective of any foreign currency exposure hedging, a Portfolio may experience a decline in the value of its portfolio securities, in US dollar terms, due solely to fluctuations in currency exchange rates.
(f) Derivatives and Hedging Risk—Derivatives transactions, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested. Swap agreements; forward currency contracts; structured products; over-the-counter options on currencies and swap agreements; and other over-the-counter derivatives transactions are subject to the risks of the creditworthiness of, and default, by the counterparty and consequently may lose all or a portion of their value due solely to the creditworthiness of, or default by, the counterparty. Over-the-counter derivatives frequently may be illiquid and difficult to value. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives. These derivatives transactions, as well as the exchange-traded futures and options in which a Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related reference asset, index or rate. As such, a small investment could have a potentially large impact on a Portfolio’s performance. In fact, many derivatives may be subject to greater risks
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than those associated with investing directly in the underlying or other reference asset. Derivatives transactions incur costs, either explicitly or implicitly, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of derivatives, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to predict correctly movements in the direction of the relevant reference asset or market and, for hedging activities, correlation of the derivative instruments used with the investments seeking to be hedged. Use of derivatives transactions, even if entered into for hedging purposes, may cause a Portfolio to experience losses greater than if the Portfolio had not engaged in such transactions. The SEC recently adopted Rule 18f-4 under the 1940 Act, which will regulate the use of derivatives for certain Portfolios and may require a Portfolio to alter, perhaps materially, its use of derivatives.
(g) Structured Products Risk—Structured notes and other structured products are privately negotiated debt instruments where the principal and/or interest is determined by reference to a specified asset, market or rate, or the differential performance of two assets or markets. Structured products can have risks of both fixed-income securities and derivatives transactions. Derivatives transactions may increase volatility or reduce returns, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested, and they are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related reference asset, market or rate. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Use of derivatives transactions may cause a Portfolio to experience losses greater than if a Portfolio had not engaged in such transactions.
(h) Mortgage-Related and Asset-Backed Securities Risk—Mortgage-related securities are complex instruments, subject to both credit and prepayment risk, and may be more volatile and less liquid, and more difficult to price accurately, than more traditional debt securities. Mortgage-related securities generally are subject to credit risks associated with the performance of the underlying mortgage prop-
102 Semi-Annual Report
erties. Prepayment risk can lead to fluctuations in value of the mortgage-related security which may be pronounced. As with other interest-bearing securities, the prices of certain mortgage-related securities are inversely affected by changes in interest rates. However, although the value of a mortgage-related security may decline when interest rates rise, the converse is not necessarily true, since during periods of declining interest rates the mortgages underlying the security are more likely to be prepaid.
The risks of asset-backed securities are similar to those of mortgage-related securities. However, asset-backed securities present certain risks that are not presented by mortgage-related securities. Primarily, these securities may provide a Portfolio with a less effective security interest in the related collateral than do mortgage-related securities.
(i) Preferred Securities Risk—There are various risks associated with investing in preferred securities. In addition, unlike common stock, participation in the growth of an issuer may be limited.
• | Credit risk is the risk that a security held by the Portfolio will decline in price or the issuer of the security will fail to make dividend, interest or principal payments when due because the issuer experiences a decline in its financial status. |
• | Interest rate risk is the risk that securities will decline in value because of changes in market interest rates. When market interest rates rise, the market value of such securities generally will fall. |
• | Preferred securities may include provisions that permit the issuer, at its discretion, to defer or omit distributions for a stated period without any adverse consequences to the issuer. |
• | Preferred securities are generally subordinated to bonds and other debt instruments in an issuer’s capital structure in terms of having priority to corporate income, claims to corporate assets and liquidation payments, and therefore will be subject to greater credit risk than more senior debt instruments. |
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• | During periods of declining interest rates, an issuer may be able to exercise an option to call, or redeem its issue at par earlier than the scheduled maturity. If this occurs during a time of lower or declining interest rates, the Portfolio may have to reinvest the proceeds in lower yielding securities (and the Portfolio may not benefit from any increase in the value of its portfolio holdings as a result of declining interest rates). |
• | Certain preferred securities may be substantially less liquid than many other securities, such as common stocks or US government securities. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by the Portfolio or at prices approximating the value at which the Portfolio is carrying the securities on its books. |
(j) Non-Diversification Risk—A Portfolio that is classified as “non-diversified” may be more vulnerable to changes in the market value of a single issuer or group of issuers and may be relatively more susceptible to adverse effects from any single corporate, industry, economic, market, political or regulatory occurrence than if the Portfolio’s investments consisted of securities issued by a larger number of issuers.
(k) Government Securities Risk—Not all obligations of the US government, its agencies and instrumentalities are backed by the full faith and credit of the US Treasury. Some obligations are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer. Any guarantee by the US government or its agencies or instrumentalities of a security held by a Portfolio does not apply to the market value of such security or to shares of the Portfolio itself. A security backed by the US Treasury or the full faith and credit of the United States is guaranteed only as to the timely payment of interest and principal when held to maturity.
(l) Cybersecurity Risk—The Portfolios and their service providers are susceptible to operational and information security and related risks of cybersecurity incidents. Cybersecurity attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through “hacking” or malicious software coding) for pur-
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poses of misappropriating assets or sensitive information, corrupting data or causing operational disruption. Cybersecurity incidents affecting the Investment Manager, transfer agent or custodian or other service providers such as financial intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, including by impediments to a Portfolio’s investment trading; the inability of Portfolio shareholders to purchase and redeem Portfolio shares; interference with a Portfolio’s ability to calculate its NAV; violations of applicable privacy, data security or other laws; regulatory fines and penalties; reputational damage; reimbursement or other compensation or remediation costs; legal fees; or additional compliance costs. Similar adverse consequences could result from cybersecurity incidents affecting issuers of securities in which a Portfolio invests; counterparties with which a Portfolio engages in transactions; governmental and other regulatory authorities, exchange and other financial market operators; and banks, brokers, dealers, insurance companies and other financial institutions and other parties. There are inherent limitations in any cybersecurity risk management systems or business continuity plans, including the possibility that certain risks have not been identified.
8. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnification provisions. A Portfolio’s maximum exposure under these arrangements is unknown. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
9. Fair Value Measurements
Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in
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pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below:
• | Level 1 – unadjusted quoted prices in active markets for identical assets and liabilities |
• | Level 2 – other significant observable inputs (including unadjusted quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk, etc.) |
• | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of assets and liabilities) |
Changes in valuation methodology or inputs may result in transfers into or out of the current assigned level within the hierarchy.
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.
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The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of June 30, 2021:
Unadjusted | |||||||||||||||||
Quoted Prices in | |||||||||||||||||
Active Markets | Significant | ||||||||||||||||
for Identical | Other | Significant | |||||||||||||||
Assets | Observable | Unobservable | |||||||||||||||
and Liabilities | Inputs | Inputs | Balance as of | ||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | June 30, 2021 | |||||||||||||
Emerging Markets Debt Portfolio | |||||||||||||||||
Assets: | |||||||||||||||||
Corporate Bonds* | $ | — | $ | 1,376,806 | $ | — | $ | 1,376,806 | |||||||||
Foreign Government Obligations* | — | 18,222,588 | — | 18,222,588 | |||||||||||||
Quasi Government Bonds* | — | 37,740 | — | 37,740 | |||||||||||||
Supranational Bonds | — | 14,619 | — | 14,619 | |||||||||||||
Short-Term Investments | 1,285,015 | — | — | 1,285,015 | |||||||||||||
Other Financial Instruments† | |||||||||||||||||
Forward Currency Contracts | — | 43,374 | — | 43,374 | |||||||||||||
Total | $ | 1,285,015 | $ | 19,695,127 | $ | — | $ | 20,980,142 | |||||||||
Liabilities: | |||||||||||||||||
Other Financial Instruments† | |||||||||||||||||
Forward Currency Contracts | $ | — | $ | (69,717 | ) | $ | — | $ | (69,717 | ) | |||||||
Interest Rate Swaps | — | (9,325 | ) | — | (9,325 | ) | |||||||||||
Total | $ | — | $ | (79,042 | ) | $ | — | $ | (79,042 | ) | |||||||
Global Fixed Income Portfolio | |||||||||||||||||
Assets: | |||||||||||||||||
Corporate Bonds* | $ | — | $ | 3,425,543 | $ | — | $ | 3,425,543 | |||||||||
Foreign Government Obligations* | — | 4,424,485 | — | 4,424,485 | |||||||||||||
Quasi Government Bonds* | — | 128,885 | — | 128,885 | |||||||||||||
Supranational Bonds | — | 905,381 | — | 905,381 | |||||||||||||
US Municipal Bonds | — | 104,306 | — | 104,306 | |||||||||||||
US Treasury Securities | — | 32,607 | — | 32,607 | |||||||||||||
Short-Term Investments | 103,131 | — | — | 103,131 | |||||||||||||
Other Financial Instruments† | |||||||||||||||||
Forward Currency Contracts | — | 72,386 | — | 72,386 | |||||||||||||
Total | $ | 103,131 | $ | 9,093,593 | $ | — | $ | 9,196,724 | |||||||||
Liabilities: | |||||||||||||||||
Other Financial Instruments† | |||||||||||||||||
Forward Currency Contracts | $ | — | $ | (93,031 | ) | $ | — | $ | (93,031 | ) |
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Unadjusted | |||||||||||||||||
Quoted Prices in | |||||||||||||||||
Active Markets | Significant | ||||||||||||||||
for Identical | Other | Significant | |||||||||||||||
Assets | Observable | Unobservable | |||||||||||||||
and Liabilities | Inputs | Inputs | Balance as of | ||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | June 30, 2021 | |||||||||||||
US Corporate Income Portfolio | |||||||||||||||||
Corporate Bonds* | $ | — | $ | 259,515,401 | $ | — | $ | 259,515,401 | |||||||||
Exchange-Traded Funds | 23,893,610 | — | — | 23,893,610 | |||||||||||||
Short-Term Investments | 18,351,274 | — | — | 18,351,274 | |||||||||||||
Total | $ | 42,244,884 | $ | 259,515,401 | $ | — | $ | 301,760,285 | |||||||||
US Short Duration Fixed Income Portfolio | |||||||||||||||||
Asset-Backed Securities | $ | — | $ | 2,364,415 | $ | — | $ | 2,364,415 | |||||||||
Corporate Bonds* | — | 11,568,759 | — | 11,568,759 | |||||||||||||
US Government Securities | — | 584,596 | — | 584,596 | |||||||||||||
US Treasury Securities | — | 68,174,446 | — | 68,174,446 | |||||||||||||
Short-Term Investments | 286,723 | — | — | 286,723 | |||||||||||||
Total | $ | 286,723 | $ | 82,692,216 | $ | — | $ | 82,978,939 |
* | Please refer to Portfolios of Investments and Notes to Portfolios of Investments for portfolio holdings by country and industry. |
† | Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation). |
10. Derivative Instruments
Certain Portfolios may use derivative instruments, including forward currency contracts or swap agreements.
Forward currency contracts may be used for hedging purposes or to seek to increase returns.
A Portfolio enters into swap agreements in an attempt to obtain a particular exposure when it is considered desirable to do so, possibly at a lower cost to such Portfolio than if it had invested directly in the asset that yielded the desired exposure.
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During the period ended June 30, 2021, the approximate average monthly notional exposure for derivative instruments was as follows:
Emerging | Global | |||||||
Markets | Fixed | |||||||
Debt | Income | |||||||
Derivative Instruments | Portfolio | Portfolio | ||||||
Forward currency contracts: | ||||||||
Average amounts purchased | $ | 4,900,000 | $ | 4,700,000 | ||||
Average amounts sold | $ | 3,200,000 | $ | 3,900,000 | ||||
Futures: | ||||||||
Average notional value of contracts – short | $ | 1,100,000 | * |
* | Represents average monthly notional exposure for the two months the derivative instrument was open during the period. |
Interest rate swap agreements: | ||||||||
Average notional value – receives fixed rate on centrally cleared | $ | 300,000 | — | |||||
Purchased Options: | ||||||||
Average notional amount | $ | 1,100,000 | * | — |
* | Represents average monthly notional exposure for the two months the derivative instrument was open during the period. |
The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of June 30, 2021:
Emerging Markets Debt Portfolio
Assets – Derivative Financial Instruments | Total | |||||
Forward currency contracts | Unrealized appreciation on forward currency contracts | $ | 43,374 |
Foreign | Interest | |||||||||||
Currency | Rate | |||||||||||
Liabilities – Derivative Financial Instruments | Contracts | Contracts | Total | |||||||||
Forward currency contracts | ||||||||||||
Unrealized depreciation on forward currency contracts | $ | 69,717 | $ | — | $ | 69,717 | ||||||
Swaps | ||||||||||||
Variation margin payable on centrally cleared swaps (a) | — | $ | 103 | $ | 103 | |||||||
Total | $ | 69,717 | $ | 103 | $ | 69,820 |
(a) | Net cumulative unrealized appreciation (depreciation) on centrally cleared swap agreements, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
Semi-Annual Report 109
Global Fixed Income Portfolio
Assets – Derivative Financial Instruments | Total | |||||
Forward currency contracts | Unrealized appreciation on forward currency contracts | $ | 72,386 | |||
Liabilities – Derivative Financial Instruments | ||||||
Forward currency contracts | Unrealized depreciation on forward currency contracts | $ | 93,031 |
Emerging Markets Debt Portfolio
The effect of derivative instruments on the Statement of Operations for the period ended June 30, 2021 was:
Net Realized Gain (Loss) from: | Foreign Currency Contracts | Interest Rate Contracts | Total | |||||||||
Forward currency contracts | $ | 9,883 | $ | — | $ | 9,883 | ||||||
Futures | — | (14,878 | ) | (14,878 | ) | |||||||
Purchased Options | (4,395 | ) | — | (4,395 | ) | |||||||
Swap agreements | — | (12 | ) | (12 | ) | |||||||
Total | $ | 5,488 | $ | (14,890 | ) | $ | (9,402 | ) | ||||
Net Change in Unrealized Appreciation (Depreciation) on: | Foreign Currency Contracts | Interest Rate Contracts | Total | |||||||||
Forward currency contracts | $ | (69,653 | ) | $ | — | $ | (69,653 | ) | ||||
Swap agreements | — | (15,061 | ) | (15,061 | ) | |||||||
Total | $ | (69,653 | ) | $ | (15,061 | ) | $ | (84,714 | ) |
Global Fixed Income Portfolio
The effect of derivative instruments on the Statement of Operations for the period ended June 30, 2021 was:
Net Realized Gain (Loss) from: | Total | |||
Forward currency contracts | $ | (147,385 | ) | |
Net Change in Unrealized Appreciation (Depreciation) on: | ||||
Forward currency contracts | $ | 25,100 |
None of the other Portfolios presented traded in derivative instruments during the period ended June 30, 2021.
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As of June 30, 2021, the Emerging Markets Debt and Global Fixed Income Portfolios held derivative instruments that are eligible for offset in the Statements of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through a single payment in the event of default on, or termination of, any one contract.
The required information for the affected Portfolios are presented in the below table, as of June 30, 2021:
Emerging Markets Debt Portfolio
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | |||||||||||||
Forward Currency Contracts | $ | 43,374 | $ | — | $ | 43,374 | ||||||||||
Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||
Bank of America NA | $ | 4,383 | $ | (4,383 | ) | $ | — | $ | — | |||||||||
Barclays Bank PLC | 24,224 | (12,125 | ) | — | 12,099 | |||||||||||||
Citibank NA | 2,065 | (1,600 | ) | — | 465 | |||||||||||||
HSBC Bank USA NA | 4,587 | (4,587 | ) | — | — | |||||||||||||
JPMorgan Chase Bank NA | 1,818 | (527 | ) | — | 1,291 | |||||||||||||
Standard Chartered Bank | 4,481 | (4,481 | ) | — | — | |||||||||||||
State Street Bank and Trust Co. | 1,816 | (1,816 | ) | — | — | |||||||||||||
Total | $ | 43,374 | $ | (29,519 | ) | $ | — | $ | 13,855 | |||||||||
Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | |||||||||||||
Forward Currency Contracts | $ | 69,717 | $ | — | $ | 69,717 |
Semi-Annual Report 111
Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amounts of Derivative Liabilities | ||||||||||||||
Bank of America NA | $ | 5,165 | $ | (4,383 | ) | $ | — | $ | 782 | |||||||||
Barclays Bank PLC | 12,125 | (12,125 | ) | — | — | |||||||||||||
Citibank NA | 1,600 | (1,600 | ) | — | — | |||||||||||||
HSBC Bank USA NA | 8,996 | (4,587 | ) | — | 4,409 | |||||||||||||
JPMorgan Chase Bank NA | 527 | (527 | ) | — | — | |||||||||||||
Standard Chartered Bank | 18,322 | (4,481 | ) | — | 13,841 | |||||||||||||
State Street Bank and Trust Co. | 18,998 | (1,816 | ) | — | 17,182 | |||||||||||||
UBS AG | 3,984 | — | — | 3,984 | ||||||||||||||
Total | $ | 69,717 | $ | (29,519 | ) | $ | — | $ | 40,198 |
Global Fixed Income Portfolio
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | |||||||||||||
Forward Currency Contracts | $ | 72,386 | $ | — | $ | 72,386 | ||||||||||
Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||
Citibank NA | $ | 15,625 | $ | (12,128 | ) | $ | — | $ | 3,497 | |||||||||
HSBC Bank USA NA | 28,275 | (28,275 | ) | — | — | |||||||||||||
JPMorgan Chase Bank NA | 25,688 | (25,688 | ) | — | — | |||||||||||||
Morgan Stanley Capital Services LLC. | 2,798 | (1,228 | ) | — | 1,570 | |||||||||||||
Total | $ | 72,386 | $ | (67,319 | ) | $ | — | $ | 5,067 | |||||||||
Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | |||||||||||||
Forward Currency Contracts | $ | 93,031 | $ | — | $ | 93,031 |
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Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amounts of Derivative Liabilities | ||||||||||||||
Citibank NA | $ | 12,128 | $ | (12,128 | ) | $ | — | $ | — | |||||||||
HSBC Bank USA NA | 48,276 | (28,275 | ) | — | 20,001 | |||||||||||||
JPMorgan Chase Bank NA | 31,399 | (25,688 | ) | — | 5,711 | |||||||||||||
Morgan Stanley Capital Services LLC. | 1,228 | (1,228 | ) | — | — | |||||||||||||
Total | $ | 93,031 | $ | (67,319 | ) | $ | — | $ | 25,712 |
11. Accounting Pronouncements
On March 12, 2020, the Financial Accounting Standards Board concluded its reference rate reform project with the issuance of Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”). ASU No. 2020-04 provides elective temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of London Interbank Offered Rate (LIBOR) and other interbank offered based reference rates as of the end of 2021. ASU No. 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU No. 2020-04.
12. Subsequent Events
Management has evaluated subsequent events potentially affecting the Portfolios through the issuance of the financial statements and has determined that there were no subsequent events that required adjustment or disclosure.
Semi-Annual Report 113
The Lazard Funds, Inc. Other Information (unaudited)
Tax Information
Year Ended December 31, 2020
The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2020:
Of the dividends paid by the Portfolios, none are qualified dividend income.
Of the dividends paid by the Portfolios, no dividends qualify for the dividends received deduction available to corporate shareholders.
Pursuant to Section 871 of the Code, the Portfolios have no designated qualified short-term gains for purposes of exempting withholding of tax on such distributions to US nonresident shareholders.
Proxy Voting
A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the Securities and Exchange Commission (the “SEC”) website at https://www.sec.gov.
The Fund’s proxy voting record for the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SEC’s website at https://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.
Schedule of Portfolio Holdings
The Fund files the complete schedule of each Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.
Board Consideration of Management Agreement
At meetings of the Board held on May 26, 2021 and June 23, 2021, the Board considered the approval, for an additional annual period, of the Management Agreement between the Fund, on behalf of
114 Semi-Annual Report
each of the Portfolios, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel, who advised the Board on relevant legal standards and met with the Independent Directors in executive sessions separate from representatives of the Investment Manager.
Representatives of the Investment Manager discussed with the Board the Investment Manager’s written materials provided in advance of the meetings, including, at the June 23, 2021 meeting, additional information requested by the Independent Directors at the May 26, 2021 meeting.
Services Provided
The Investment Manager’s materials addressed, among other matters, the nature, extent and quality of services that the Investment Manager provides the Fund, including a discussion of the Investment Manager and its clients (of which the Lazard Funds complex of 35 active funds comprised approximately $26 billion of the approximately $265 billion of total assets under the management of the Investment Manager and its global affiliates as of March 31, 2021).
The Board considered the various services provided by the Investment Manager including the Investment Manager’s research, portfolio management and trading capabilities and oversight of day-to-day operations, including supervision of fund accounting and administration-related services and assistance in meeting legal and regulatory requirements, as well as regular reporting to, and support of, the Board. The Investment Manager’s representatives stated that the Investment Manager believes that the Fund and its shareholders continue to be able to obtain significant benefits as a result of the resources and support of the Investment Manager’s global research, portfolio management, trading, operations, risk management, technology and legal and compliance infrastructure. The Board also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience; the Fund’s distribution channels and the relationships with various intermediaries; marketing and shareholder servicing activities on behalf of the Portfolios; and Portfolio asset flows and the growth or decline in asset levels. The
Semi-Annual Report 115
Board accepted the assertion of representatives of the Investment Manager that the Fund benefits from the services and infrastructure provided by the Investment Manager and that such services and infrastructure are greater than those typically provided to a $26 billion fund complex not managed by a large, global firm such as the Investment Manager.
Comparative Fee, Expense Ratio and Performance Information
Strategic Insight Advisory Fee and Expense Ratio Comparisons. The Board reviewed, for each Portfolio, information prepared by Strategic Insight, an independent provider of investment company data, including, among other information, each Portfolio’s contractual advisory fee (i.e., without giving effect to any fee waivers) and net expense ratio (i.e., after giving effect to the Portfolio’s expense limitation agreed to by the Investment Manager) to those of:
● | a group of funds not advised by the Investment Manager selected by Strategic Insight as comparable, for expense comparison purposes, to the Portfolio in terms of relevant criteria as appropriate (the “Expense Peer Group”1); and |
● | the funds within the broad category of funds to which the Portfolio has been assigned by Morningstar, Inc., an independent third party service that ranks and rates funds (“Morningstar”), with certain exclusions as specified by Strategic Insight (the “Expense Category”). |
Representatives of the Investment Manager discussed the results of the Strategic Insight advisory fee and net expense ratio comparisons with the Board, which showed that the advisory fees and net expense ratios of the Portfolios were generally competitive within each Portfolio’s respective Expense Peer Group. The Board considered the comparisons, additional perspectives in information prepared by, and in discussions with, representatives of the Investment Manager and that the Investment Manager continues
1 | The Strategic Insight materials outlined the process for constructing the Expense Peer Groups, as well the Expense Categories, Performance Peer Groups and Performance Categories (all as defined herein). Representatives of the Investment Manager and independent legal counsel had previously discussed with the Board in further detail the methodologies used by Strategic Insight in constructing the Expense Peer Groups, Expense Categories, Performance Peer Groups and Performance Categories, including how the methodologies could affect the results of the comparisons. |
116 Semi-Annual Report
to voluntarily enter into expense limitation agreements for all of the Portfolios, pursuant to which the Investment Manager was currently waiving advisory fees and/or reimbursing expenses.
Other Accounts Advisory Fee Comparisons. The Board also considered the actual advisory fees paid to the Investment Manager by other accounts of the Investment Manager that are comparable to each Portfolio in terms of investment objectives, strategies and policies, if any (including other investment companies and other pooled investment vehicles, “Other Accounts”). Representatives of the Investment Manager discussed the nature of the Other Accounts and the significant differences in services provided by the Investment Manager to the different types of Other Accounts as compared to the services provided to the Portfolios. The Board considered the relevance of the fee information provided for Other Accounts, in light of the Investment Manager’s discussion of the significant differences in services provided, to evaluate the advisory fees of the relevant Portfolios.
Strategic Insight Performance Comparisons. The Board reviewed information prepared by Strategic Insight including, among other information, each Portfolio’s performance for the one-, three-, five- and ten-year periods ended March 31, 2021, as applicable, compared to performance for the same time periods of:
● | a group of funds not advised by the Investment Manager selected by Strategic Insight as comparable, for performance comparison purposes, to the Portfolio in terms of relevant criteria as appropriate (the “Performance Peer Group”); |
● | the funds within the broad category of funds to which the Portfolio has been assigned by Morningstar (the “Performance Category”); and |
● | the Portfolio’s benchmark index. |
When evaluating the performance of each Portfolio, the Board considered Strategic Insight’s performance analysis along with other information provided by the Investment Manager, including additional information regarding performance expectations, as
Semi-Annual Report 117
well as additional perspectives in information prepared by, and in discussions with, representatives of the Investment Manager. The Board also received and would continue to receive regular updates and/or additional information from the Investment Manager in respect of Portfolios with relative underperformance or Portfolios which otherwise are not performing in accordance with expectations, as well as any other Portfolios for which the Board requested additional information.
Investment Manager Profitability and Economies of Scale
The Board reviewed information prepared by the Investment Manager for each Portfolio concerning the estimated profitability percentage of the Management Agreement to the Investment Manager and its affiliates for the calendar year ended December 31, 2020 and the Investment Manager’s cost allocation methodology to compute an estimate of each Portfolio’s costs to the Investment Manager. The Investment Manager’s representatives stated that neither the Investment Manager nor its affiliates receive any significant benefits from the Investment Manager acting as investment manager to the Portfolios. The representatives of the Investment Manager reminded the Board that the Investment Manager is continuing to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Fund does not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolios’ Open Shares.
The profitability percentages were within ranges determined by relevant court cases not to be so disproportionately large that they bore no reasonable relationship to the services rendered. The Board (1) considered the Investment Manager’s estimated profitability percentage with respect to each Portfolio as part of their evaluation of the Portfolio’s fee under the Management Agreement, considered in relation to the mix of services provided by the Investment Manager (including the nature, extent and quality of such services), and (2) evaluated the profitability percentage in light of the relevant circumstances for each Portfolio. Representa-
118 Semi-Annual Report
tives of the Investment Manager and the Board discussed ways economies of scale could be realized and how they could be shared, including the Investment Manager’s reinvestment of profits back into its business, waiving or reducing Portfolio management fees and/or reimbursing expenses, adding discounts to a Portfolio’s management fee schedule as a Portfolio’s assets increase or by instituting management fees at inception that account for future scale. For each of the Portfolios, it was noted that, since the Portfolio had (1) generally stable or decreased assets from the end of calendar year 2019 to the end of calendar year 2020, and/or (2) not reached a significant size, the potential that the Investment Manager may have realized any material economies of scale was reduced.
Conclusions and Determinations
At the conclusion of these discussions, the Board expressed the opinion that it had been furnished with such information as may reasonably be necessary to make an informed business decision with respect to evaluation of the renewal of the Management Agreement. Based on its discussions and considerations as described above, with the assistance of independent legal counsel and in the exercise of its business judgment, the Board made the following conclusions and determinations.
● | The Board concluded that the nature, extent and quality of the services provided by the Investment Manager are adequate and appropriate, noting the benefits of the significant services and infrastructure associated with an approximately $265 billion global asset management business. |
● | The Board concluded that each Portfolio’s fee paid to the Investment Manager was appropriate under the circumstances and in light of the factors and the totality of the services provided. |
● | The Board, after considering the information provided and the totality of the relevant circumstances for each Portfolio, concluded that the investment performance of each Portfolio was acceptable or that, for any Portfolios that were not performing in accordance with expectations, the Board accepted that the |
Semi-Annual Report 119
Investment Manager was taking steps intended to improve performance and the Board would continue to monitor performance. | |
● | The Board recognized that economies of scale may be realized, particularly as the assets of the Portfolios increase and determined that it would continue to consider potential material economies of scale. |
In evaluating the Management Agreement, the Board relied on the information described above, in addition to information provided by the Investment Manager throughout the year relating to the operations of the Fund and the investment management and other services provided under the Management Agreement, including information on the investment performance of the Portfolios in comparison to similar mutual funds and benchmark performance indices over various time periods, as well as information regarding the expected pattern of performance for the Portfolios in different market conditions and/or as compared to the performance of other funds that may be included in a Portfolio’s Performance Peer Group and/or Performance Category; general market outlook as applicable to the Portfolios; and compliance reports. The Board also relied on its previous knowledge, gained through meetings and other interactions with the Investment Manager, of the Investment Manager and the services provided to the Fund by the Investment Manager. The Board considered these conclusions and determinations in their totality and determined to approve the Fund’s Management Agreement for each Portfolio. In deciding whether to vote to approve the Management Agreement for each Portfolio, each Director may have accorded different weights to different factors so that each Director may have had a different basis for his or her decision.
Statement Regarding Liquidity Risk Management Program
The Fund has adopted a liquidity risk management program (the “LRMP”) pursuant to the requirements of Rule 22e-4 under the 1940 Act, which requires registered open-end funds (other than money market funds) to adopt and implement a written liquidity risk management program that is reasonably designed to assess
120 Semi-Annual Report
and manage liquidity risk. The rule is designed to promote effective liquidity risk management and reduce liquidity risk—i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund.
The Board approved the Investment Manager to administer the LRMP (the “Program Administrator”). As Program Administrator, the Investment Manager delegates the day-to-day activities required by the LRMP to a Valuation and Liquidity Committee comprised of various Fund officers and senior personnel of the Investment Manager. In addition, the Fund has contracted with a third party liquidity assessment vendor to support the classification of Portfolio investments.
Pursuant to the requirements of Rule 22e-4, the Board must review, no less frequently than annually, a written report prepared by the Program Administrator that, among other things, addresses the operation of the LRMP and assesses its adequacy and effectiveness of implementation and any material changes to the LRMP. The Board received a written report in June 2021 (the “Annual Report”). The Annual Report included, among other things, a statement that the Investment Manager, as the Program Administrator, acting primarily through the Valuation and Liquidity Committee, has reviewed the operation of the LRMP and believes that the LRMP is reasonably designed to assess and manage the Portfolios’ liquidity risk and is adequate and effective in its implementation. There were no material compliance matters relating to compliance with Rule 22e-4 identified in the Annual Report.
Semi-Annual Report 121
The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
www.lazardassetmanagement.com
Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Custodian
State Street Bank and Trust Company
One Iron Street
Boston, Massachusetts 02210-1641
Transfer Agent and Dividend Disbursing Agent
DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169-0953
Telephone: 617-483-7000
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015
Legal Counsel
Proskauer Rose LLP
Eleven Times Square
New York, New York 10036-8299
www.proskauer.com
Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com | ||
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com. | ||
LZDPS026 |
Lazard Funds
Semi-Annual Report
June 30, 2021
Multi-Asset Funds
Lazard Global Dynamic Multi-Asset Portfolio
Lazard Opportunistic Strategies Portfolio
Lazard Real Assets Portfolio
Lazard Enhanced Opportunities Portfolio
The Lazard Funds, Inc. Table of Contents
Please consider a Portfolio’s investment objective, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. (the “Fund”), you may obtain a prospectus or the Portfolio’s summary prospectus by calling 800-823-6300, or online, at www.lazardassetmanagement.com. Read the prospectus or the Portfolio’s summary prospectus carefully before you invest. The prospectus and a Portfolio’s summary prospectus contain the investment objective, risks, charges, expenses and other information about the Portfolio, which are not detailed in this report.
Distributed by Lazard Asset Management Securities LLC.
Semi-Annual Report 1
The Lazard Funds, Inc. A Message from Lazard (unaudited)
Dear Shareholder,
Progress in the long battle against COVID-19 brightened the economic outlook in many parts of the world in the first six months of 2021, and that was reflected in the global equity markets. The MSCI World Index returned a healthy 13% as vaccination rates rose, many economies reopened, and recovery took hold, especially in the United States where vaccination accelerated dramatically.
Yet, this ride up was far from smooth. During the first half of 2021, investor sentiment seemed to alternate, often from day-to-day, between growing optimism over the economic rebound and worry over the downside risks that could derail the recovery, from uneven vaccine distribution to outbreaks of the virus in Europe and Asia and the emergence of more virus strains.
Increasingly, investors also became concerned with an “upside risk” that could result from faster economic growth: inflation. Amid supply-chain bottlenecks, surging commodity prices, and sharp increases in China’s producer prices, inflation moved front and center in the second quarter. The key concern was that the huge fiscal stimulus in the United States, in particular, could drive inflation higher, forcing the Federal Reserve (the “Fed”) and other central banks to retreat from their easy monetary policy before economic recovery is fully realized. In fact, the US Consumer Price Index (CPI) to date in 2021 jumped to an annualized 5% in May—the highest rate in more than a decade and well above the Fed’s 2% target for inflation.
However, the Fed has maintained that recent higher inflation is temporary and due to the global economy restarting. At their meeting in June, the Federal Open Market Committee moved up its own median estimate for the timing of their next interest rate increase to 2023 from 2024, a signal that the economy is recovering more quickly than the central bank had expected, but also that it is not currently overheating, which would warrant action sooner. In sum, the Fed seemed to relieve many investors’ concerns over inflation, for now.
2 Semi-Annual Report
In this tug-of-war market environment, the equity bulls won out as many companies reported higher earnings, brighter outlooks, or both. Although stock markets in both developed and emerging markets generally gained, developed markets generally performed better than emerging markets as vaccination rates and economic reopening advanced more quickly. In the United States, the S&P 500 Index hit a series of new highs thanks in part to exceptionally strong corporate earnings.
We remain optimistic for the second half of 2021. The Fed expects US real gross domestic product (“GDP”) growth to reach a staggering 7% for the year (after nearly –3.5% in 2020), and vaccination rates should continue to climb, helping to boost growth, particularly in the emerging markets. Still, like the past six months, the journey is likely to be bumpy. Inflation, economic data, and the path of recovery itself may seem volatile at times. As of the end of the semi-annual period, a highly infectious COVID-19 strain has become dominant around the world, a sobering reminder that we are still fighting the pandemic.
In the push-pull of the financial markets, we believe fundamental analysis and stock selection are crucial to staying on track. We value your continued confidence in us, and, as always, we will strive for long-term patterns of performance that are consistent with your expectations.
Sincerely,
Lazard Asset Management LLC
Semi-Annual Report 3
The Lazard Funds, Inc. Performance Overviews (unaudited)
Lazard Global Dynamic Multi-Asset Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Dynamic Multi-Asset Portfolio, the MSCI® World Index and GDMA Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Year | Since Inception | † | |
Institutional Shares** | 19.20% | 7.48% | 7.33% | |
Open Shares** | 18.92% | 7.17% | 7.03% | |
MSCI World Index | 39.04% | 14.83% | 14.27% | |
GDMA Index | 19.82% | 8.68% | 8.71% |
† | The inception date for the Portfolio was May 27, 2016. |
Lazard Opportunistic Strategies Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Opportunistic Strategies Portfolio, MSCI World Index and Global Asset Allocation Blended Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Year | Ten Year | |
Institutional Shares** | 18.27% | 7.91% | 5.52% |
Open Shares** | 18.10% | 7.61% | 5.17% |
MSCI World Index | 39.04% | 14.83% | 10.65% |
Global Asset Allocation Blended Index | 22.15% | 10.43% | 8.06% |
4 Semi-Annual Report
Lazard Real Assets Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Real Assets Portfolio, MSCI World Index and Real Assets Index*, Real Assets Custom Index* and Real Assets Linked Custom Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Since Inception | † | |
Institutional Shares** | 25.55% | 6.83% | |
Open Shares** | 25.33% | 6.54% | |
MSCI World Index | 39.04% | 14.91% | |
(Institutional | |||
Shares | ) | ||
14.62% | |||
(Open Shares | ) | ||
Real Assets Index | 30.93% | 7.31% | |
(Institutional | |||
Shares | ) | ||
7.30% | |||
(Open Shares | ) | ||
Real Assets Custom Index | 31.00% | 8.97% | |
(Institutional | |||
Shares | ) | ||
8.92% | |||
(Open Shares | ) | ||
Real Assets Linked Custom Index | 26.77% | 8.18% | |
(Institutional | |||
Shares | ) | ||
8.12% | |||
(Open Shares | ) |
† | The inception date for the Institutional Shares was December 30, 2016 and for the Open Shares was January 9, 2017. |
Semi-Annual Report 5
Lazard Enhanced Opportunities Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Enhanced Opportunities Portfolio, the ICE BofAML U.S. Convertible ex Mandatory® Index and the HFRX Global Hedge Fund® Index*
Average Annual Total Returns*
Periods Ended June 30, 2021
One Year | Five Year | Since Inception | † | |
Institutional Shares** | 17.65% | 5.60% | 4.16% | |
Open Shares** | 17.51% | 5.34% | 3.90% | |
ICE BofAML U.S. Convertible ex Mandatory Index | 48.00% | 20.65% | 15.28% | |
HFRX Global Hedge Fund Index | 12.01% | 4.22% | 2.51% |
† | The inception date for the Portfolio was December 31, 2014. |
Notes to Performance Overviews:
* | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s administrator (“State Street”), or DST Asset Manager Solutions, Inc., the Fund’s transfer agent and dividend disbursing agent (“DST”); without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
Performance results do not include adjustments made for financial reporting purposes in accordance with US Generally Accepted Accounting Principles (“GAAP”), if any, and may differ from amounts reported in the financial highlights. For the Lazard Enhanced Opportunity Portfolio, a one-time voluntary reimbursement by State Street increased the total return ratio by 0.17% and 0.07% respectively, for period ended June 30, 2021 and 0.49% for year ended December 31, 2017. | |
The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the 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 graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares. |
6 Semi-Annual Report
The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The indices are unmanaged, have no fees or costs and are not available for investment.
The MSCI World Index is a free-float-adjusted market capitalization index that is designed to measure global developed markets equity performance. The MSCI World Index consists of 23 developed markets country indices.
The GDMA Index is a blended index constructed by the Investment Manager that is comprised of 50% MSCI World Index and 50% Bloomberg Barclays Global Aggregate® Index and is rebalanced monthly. The Bloomberg Barclays Global Aggregate Index provides a broad-based measure of global investment-grade fixed-income debt markets, including government-related debt, corporate debt, securitized debt and global Treasury.
The Global Asset Allocation Blended Index is a blended index constructed by the Investment Manager that is comprised of 60% MSCI World Index and 40% Bloomberg Barclays US Aggregate Index and is rebalanced quarterly. The Bloomberg Barclays US Aggregate Index covers the investment-grade, US dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities, with maturities of no less than one year.
The Real Assets Index is an index constructed by the Investment Manager that is comprised of 33.3% MSCI World Core Infrastructure USD Hedged Index, 33.3% MSCI ACWI IMI Core Real Estate Index, and 33.3% Bloomberg Barclays Commodity Total Return Index. The Real Assets Index was constructed by the Investment Manager for comparison to the performance of the Lazard Real Assets Portfolio pursuant to its investment strategy effective September 1, 2020. The Real Assets Index will replace the Real Assets Custom Index, which was created by the Investment Manager for comparison to the Portfolio’s performance pursuant to its investment strategy prior to September 1, 2020.
The Real Assets Custom Index is an unmanaged index created by the Investment Manager, and is comprised of 20% MSCI World Index, 20% MSCI World Core Infrastructure USD Hedged Index (the “Infrastructure Index”), 20% MSCI ACWI IMI Core Real Estate Index, 20% Bloomberg Commodity Total Return Index and 20% Bloomberg Barclays World Government Inflation-Linked 1–10 Year USD Hedged Index. The Infrastructure Index captures large and mid-cap securities across the 23 developed market countries of the MSCI World Index and is designed to represent the performance of listed companies within the developed markets that are engaged in core industrial infrastructure activities. Note that the Investment Manager invests in a range of companies globally, not specifically developed markets countries. The MSCI ACWI IMI Core Real Estate Index is a free float-adjusted market capitalization index that consists of large, mid and small-cap stocks across 23 developed markets and 27 emerging markets countries engaged in the ownership, development and management of specific core property type real estate. The index excludes companies, such as real estate services and real estate financing companies, that do not own properties. The Bloomberg Commodity Total Return index is composed of futures contracts and reflects the returns on a fully collateralized investment in the Bloomberg Commodity Indices (the “BCOM”). This combines the returns of the BCOM with the returns on cash collateral invested in 13 week (3 Month) U.S. Treasury Bills. The Bloomberg Barclays World Government Inflation-Linked Bond 1–10 Year
Semi-Annual Report 7
Index measures the performance of investment grade, government inflation-linked debt from 12 different developed market countries.
The Real Assets Linked Custom Index shown in the table is an unmanaged index created by the Investment Manager, which links the performance of the Real Assets Custom Index for periods through August 31, 2020 (after which the Portfolio’s investment strategy changed) and the Real Assets Index for periods thereafter.
The ICE BofAML U.S. Convertible ex Mandatory Index measures the performance of convertible securities of all corporate sectors with a par amount of $25 million or more and a maturity of at least one year and excludes preferred equity redemption stocks and converted securities.
The HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies, including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event-driven, macro, merger arbitrage, and relative value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge fund industry.
** | The performance of Institutional Shares and Open Shares may vary, primarily based on the differences in fees borne by shareholders investing in different classes. |
8 Semi-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 January 1, 2021 through June 30, 2021 and held for the entire period.
Actual Expenses
For each share class of the Portfolios, the first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each share class of the Portfolios, the second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
Semi-Annual Report 9
Portfolio | Beginning Account Value 1/1/21 | Ending Account Value 6/30/21 | Expenses Paid During Period 1/1/21 - 6/30/21 | *
| Annualized Expense Ratio During Period 1/1/21 - 6/30/21 | |||||||||||
Global Dynamic Multi-Asset | ||||||||||||||||
Institutional Shares | ||||||||||||||||
Actual | $1,000.00 | $1,060.90 | $4.60 | 0.90% | ||||||||||||
Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,020.33 | $4.51 | 0.90% | ||||||||||||
Open Shares | ||||||||||||||||
Actual | $1,000.00 | $1,059.00 | $5.87 | 1.15% | ||||||||||||
Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,019.09 | $5.76 | 1.15% | ||||||||||||
Opportunistic Strategies† | ||||||||||||||||
Institutional Shares | ||||||||||||||||
Actual | $1,000.00 | $1,080.30 | $5.67 | 1.10% | ||||||||||||
Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,019.34 | $5.51 | 1.10% | ||||||||||||
Open Shares | ||||||||||||||||
Actual | $1,000.00 | $1,079.80 | $6.96 | 1.35% | ||||||||||||
Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,018.10 | $6.76 | 1.35% | ||||||||||||
Real Assets | ||||||||||||||||
Institutional Shares | ||||||||||||||||
Actual | $1,000.00 | $1,135.62 | $4.24 | 0.80% | ||||||||||||
Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,020.83 | $4.01 | 0.80% | ||||||||||||
Open Shares | ||||||||||||||||
Actual | $1,000.00 | $1,134.10 | $5.29 | 1.00% | ||||||||||||
Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,019.84 | $5.01 | 1.00% | ||||||||||||
Enhanced Opportunities† | ||||||||||||||||
Institutional Shares | ||||||||||||||||
Actual | $1,000.00 | $1,039.40 | $10.26 | 2.03% | ||||||||||||
Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,014.73 | $10.14 | 2.03% | ||||||||||||
Open Shares | ||||||||||||||||
Actual | $1,000.00 | $1,038.30 | $11.83 | 2.34% | ||||||||||||
Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,013.19 | $11.68 | 2.34% |
* | Expenses are equal to the annualized expense ratio, net of expenses waivers and reimbursements, with the exception of a one-time voluntary reimbursement by the adminstrator for the Enhanced Opportunities Portfolio, of each share class multiplied by the average account value over the period, multiplied by 181/365 (to reflect one-half year period). |
† | The expense ratios include broker expense and dividend expense on securities sold short. |
10 Semi-Annual Report
The Lazard Funds, Inc. Portfolio Holdings
Presented by Asset Class/Sector June 30, 2021 (unaudited)
Asset Class/Sector* | Lazard Global Dynamic Multi-Asset Portfolio | Lazard Real Assets Portfolio | ||||||||
Equity | ||||||||||
Communication Services | 7.5 | % | 1.0 | % | ||||||
Consumer Discretionary | 11.2 | 0.9 | ||||||||
Consumer Staples | 7.1 | 0.4 | ||||||||
Energy | 1.9 | — | ||||||||
Financials | 11.7 | — | ||||||||
Health Care | 10.3 | — | ||||||||
Industrials | 9.5 | 11.0 | ||||||||
Information Technology | 17.5 | — | ||||||||
Materials | 2.8 | 1.4 | ||||||||
Real Estate | 2.2 | 30.9 | ||||||||
Utilities | 1.5 | 15.0 | ||||||||
Exchange Traded Funds | — | 4.5 | ||||||||
Sovereign Debt | 14.0 | — | ||||||||
US Municipal Bonds | 1.3 | — | ||||||||
Short-Term Investments | 1.5 | 34.9 | ||||||||
Total Investments | 100.0 | % | 100.0 | % |
Lazard Opportunistic Strategies Portfolio | ||||||||||
Asset Class/Sector | Long^ | Short† | ||||||||
Equity** | ||||||||||
Communication Services | 4.1 | % | — | % | ||||||
Consumer Discretionary | 5.8 | — | ||||||||
Consumer Staples | 7.6 | — | ||||||||
Energy | 1.6 | — | ||||||||
Financials | 9.7 | — | ||||||||
Health Care | 12.7 | — | ||||||||
Industrials | 14.7 | — | ||||||||
Information Technology | 13.9 | — | ||||||||
Materials | 1.9 | — | ||||||||
Real Estate | 1.6 | — | ||||||||
Utilities | 1.6 | — | ||||||||
Fixed Income | 16.9 | –100.0 | ||||||||
Short-Term Investments | 7.9 | — | ||||||||
Total Investments | 100.0 | % | –100.0 | % |
* | Represents percentage of total investments. |
^ | Represents percentage of total investments excluding securities sold short. |
† | Represents percentage of total securities sold short. |
** | Equity sector breakdown is based upon the underlying holdings of exchange- traded funds held by the Portfolio. |
Semi-Annual Report 11
Lazard Enhanced Opportunities Portfolio | ||||||||||
Asset Class/Sector | Long^ | Short† | ||||||||
Convertible Corporate Bonds | ||||||||||
Communication Services | 7.9 | % | — | % | ||||||
Consumer Discretionary | 9.5 | — | ||||||||
Consumer Staples | 3.1 | — | ||||||||
Energy | 0.9 | — | ||||||||
Financials | 11.3 | — | ||||||||
Health Care | 15.2 | — | ||||||||
Industrials | 4.0 | — | ||||||||
Information Technology | 11.6 | — | ||||||||
Materials | 1.8 | — | ||||||||
Real Estate | 2.9 | — | ||||||||
Utilities | 0.6 | — | ||||||||
Equity | ||||||||||
Communication Services | — | –6.7 | ||||||||
Consumer Discretionary | — | –8.9 | ||||||||
Consumer Staples | — | –2.6 | ||||||||
Energy | — | –1.0 | ||||||||
Financials | — | –6.2 | ||||||||
Health Care | 0.0 | # | –14.2 | |||||||
Industrials | — | –3.2 | ||||||||
Information Technology | — | –10.4 | ||||||||
Materials | — | –1.4 | ||||||||
Real Estate | — | –4.5 | ||||||||
Utilities | — | –1.0 | ||||||||
US Treasury Securities | — | –39.9 | ||||||||
Short-Term Investments | 31.2 | — | ||||||||
Total Investments | 100.0 | % | –100.0 | % |
^ | Represents percentage of total investments excluding securities sold short. |
† | Represents percentage of total securities sold short. |
# | Amount is less than 0.05%. |
12 Semi-Annual Report
The Lazard Funds, Inc. Portfolios of Investments
June 30, 2021 (unaudited)
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio | ||||||||
Common Stocks | 67.8% | ||||||||
Australia | 1.2% | ||||||||
Ansell, Ltd. | 107 | $ | 3,493 | |||||
Charter Hall Long Wale REIT | 919 | 3,262 | ||||||
CSL, Ltd. | 29 | 6,204 | ||||||
Dexus REIT | 8,097 | 64,550 | ||||||
Fortescue Metals Group, Ltd. | 4,073 | 71,284 | ||||||
Nine Entertainment Co. Holdings, Ltd. | 12,390 | 27,116 | ||||||
Santos, Ltd. | 3,064 | 16,344 | ||||||
Stockland REIT | 5,137 | 18,047 | ||||||
210,300 | ||||||||
Belgium | 0.3% | ||||||||
Ageas SA | 834 | 46,254 | ||||||
Cofinimmo SA REIT | 19 | 2,893 | ||||||
Etablissements Franz Colruyt NV | 87 | 4,865 | ||||||
Proximus SADP | 140 | 2,705 | ||||||
56,717 | ||||||||
Canada | 2.2% | ||||||||
ARC Resources, Ltd. | 5,374 | 45,737 | ||||||
CAE, Inc. (*) | 1,359 | 41,857 | ||||||
Canadian National Railway Co. | 464 | 48,961 | ||||||
Canadian Western Bank | 553 | 15,525 | ||||||
Centerra Gold, Inc. | 1,140 | 8,654 | ||||||
Constellation Software, Inc. | 3 | 4,544 | ||||||
Empire Co., Ltd., Class A | 358 | 11,292 | ||||||
H&R Real Estate Investment Trust | 906 | 11,694 | ||||||
Hydro One, Ltd. | 316 | 7,638 | ||||||
Labrador Iron Ore Royalty Corp. | 502 | 19,021 | ||||||
Loblaw Cos., Ltd. | 382 | 23,510 | ||||||
Magna International, Inc. | 282 | 26,109 | ||||||
Metro, Inc. | 283 | 13,568 | ||||||
Quebecor, Inc., Class B | 455 | 12,135 | ||||||
Rogers Communications, Inc., Class B | 75 | 3,987 | ||||||
Suncor Energy, Inc. | 1,146 | 27,448 | ||||||
The Toronto-Dominion Bank | 820 | 57,441 | ||||||
Thomson Reuters Corp. | 123 | 12,218 | ||||||
391,339 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 13
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
China | 0.1% | ||||||||
SITC International Holdings Co., Ltd. | 3,000 | $ | 12,539 | |||||
Denmark | 0.8% | ||||||||
Carlsberg A/S, Class B Sponsored ADR | 1,703 | 63,760 | ||||||
Coloplast A/S, Class B | 23 | 3,776 | ||||||
Novo Nordisk A/S, Class B | 525 | 43,922 | ||||||
Vestas Wind Systems AS ADR | 2,720 | 35,469 | ||||||
146,927 | ||||||||
Finland | 0.1% | ||||||||
Elisa Oyj | 42 | 2,506 | ||||||
Nordea Bank Abp | 1,339 | 14,899 | ||||||
17,405 | ||||||||
France | 1.4% | ||||||||
BNP Paribas SA | 381 | 23,860 | ||||||
Cie de Saint-Gobain | 478 | 31,516 | ||||||
Cie Generale des Etablissements Michelin SCA | 61 | 9,736 | ||||||
Credit Agricole SA | 788 | 11,028 | ||||||
Electricite de France SA | 1,147 | 15,661 | ||||||
La Francaise des Jeux SAEM | 317 | 18,642 | ||||||
LVMH Moet Hennessy Louis Vuitton SE ADR | 316 | 49,865 | ||||||
Orange SA | 791 | 9,020 | ||||||
Pernod Ricard SA ADR | 975 | 43,387 | ||||||
Sartorius Stedim Biotech | 8 | 3,784 | ||||||
Societe Generale SA | 796 | 23,440 | ||||||
239,939 | ||||||||
Germany | 1.8% | ||||||||
Adidas AG Sponsored ADR | 221 | 41,278 | ||||||
Daimler AG | 1,283 | 114,611 | ||||||
Deutsche Bank AG (*) | 1,328 | 17,299 | ||||||
Deutsche Post AG | 1,373 | 93,420 | ||||||
Merck KGaA | 17 | 3,264 | ||||||
Merck KGaA Sponsored ADR | 1,087 | 41,730 | ||||||
311,602 | ||||||||
Hong Kong | 0.5% | ||||||||
AIA Group, Ltd. Sponsored ADR | 1,432 | 71,213 | ||||||
CLP Holdings, Ltd. | 500 | 4,942 |
The accompanying notes are an integral part of these financial statements.
14 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
Hysan Development Co., Ltd. | 1,000 | $ | 3,986 | |||||
Sun Hung Kai Properties, Ltd. | 500 | 7,451 | ||||||
87,592 | ||||||||
Israel | 0.0% | ||||||||
Bezeq The Israeli Telecommunication Corp., Ltd. (*) | 2,854 | 3,109 | ||||||
Italy | 0.3% | ||||||||
Banco BPM SpA | 4,276 | 13,743 | ||||||
Buzzi Unicem SpA | 1,234 | 32,823 | ||||||
46,566 | ||||||||
Japan | 5.0% | ||||||||
Activia Properties, Inc. REIT | 3 | 14,206 | ||||||
Advance Residence Investment Corp. REIT | 1 | 3,330 | ||||||
AGC, Inc. | 300 | 12,593 | ||||||
Ajinomoto Co., Inc. | 400 | 10,382 | ||||||
Benesse Holdings, Inc. | 100 | 2,486 | ||||||
Credit Saison Co., Ltd. | 1,800 | 21,839 | ||||||
Dai-ichi Life Holdings, Inc. | 1,900 | 34,773 | ||||||
Daito Trust Construction Co., Ltd. | 55 | 6,013 | ||||||
Daiwa Securities Living Investments Corp. REIT | 4 | 4,350 | ||||||
DCM Holdings Co., Ltd. | 300 | 2,857 | ||||||
Dip Corp. | 300 | 9,279 | ||||||
Electric Power Development Co., Ltd. | 3,700 | 52,799 | ||||||
ENEOS Holdings, Inc. | 2,800 | 11,721 | ||||||
FUJIFILM Holdings Corp. | 100 | 7,413 | ||||||
Hitachi Zosen Corp. | 1,800 | 11,648 | ||||||
Hokkaido Electric Power Co., Inc. | 2,100 | 9,470 | ||||||
Inpex Corp. | 1,500 | 11,242 | ||||||
ITOCHU Corp. | 100 | 2,875 | ||||||
Japan Logistics Fund, Inc. REIT | 7 | 21,048 | ||||||
Japan Petroleum Exploration Co., Ltd. | 600 | 10,801 | ||||||
Japan Post Bank Co., Ltd. | 4,600 | 38,530 | ||||||
Japan Post Holdings Co., Ltd. | 600 | 4,936 | ||||||
Japan Real Estate Investment Corp. | 1 | 6,147 | ||||||
K’s Holdings Corp. | 300 | 3,448 | ||||||
KDDI Corp. | 400 | 12,472 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 15
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
Kyudenko Corp. | 100 | $ | 3,201 | |||||
McDonald’s Holdings Co. Japan, Ltd. | 200 | 8,822 | ||||||
Mitsubishi Estate Co., Ltd. | 600 | 9,700 | ||||||
Mitsubishi UFJ Financial Group, Inc. | 2,300 | 12,416 | ||||||
Mizuho Financial Group, Inc. | 5,460 | 76,935 | ||||||
Nintendo Co., Ltd. ADR | 758 | 54,978 | ||||||
Nippon Telegraph & Telephone Corp. | 100 | 2,605 | ||||||
Nitto Denko Corp. | 500 | 37,291 | ||||||
Nomura Holdings, Inc. | 3,600 | 18,287 | ||||||
Nomura Real Estate Holdings, Inc. | 1,500 | 38,040 | ||||||
Osaka Gas Co., Ltd. | 1,300 | 24,087 | ||||||
Rengo Co., Ltd. | 300 | 2,497 | ||||||
Sankyo Co., Ltd. | 100 | 2,556 | ||||||
Shimano, Inc. ADR | 1,750 | 41,650 | ||||||
Shimizu Corp. | 600 | 4,594 | ||||||
Softbank Corp. | 1,600 | 20,929 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 300 | 10,324 | ||||||
Sumitomo Mitsui Trust Holdings, Inc. | 400 | 12,661 | ||||||
Sumitomo Osaka Cement Co., Ltd. | 400 | 10,870 | ||||||
Sumitomo Realty & Development Co., Ltd. | 400 | 14,289 | ||||||
T&D Holdings, Inc. | 900 | 11,694 | ||||||
Taiheiyo Cement Corp. | 800 | 17,543 | ||||||
Teijin, Ltd. | 200 | 3,038 | ||||||
The Hachijuni Bank, Ltd. | 1,000 | 3,222 | ||||||
The Kansai Electric Power Co., Inc. | 1,700 | 16,158 | ||||||
Tohoku Electric Power Co., Inc. | 4,600 | 36,018 | ||||||
Tokyo Gas Co., Ltd. | 400 | 7,518 | ||||||
Toray Industries, Inc. | 2,300 | 15,250 | ||||||
Toyota Motor Corp. | 300 | 26,189 | ||||||
Unicharm Corp. | 100 | 4,023 | ||||||
874,043 | ||||||||
Macau | 0.2% | ||||||||
Sands China, Ltd. ADR (*) | 1,013 | 42,627 |
The accompanying notes are an integral part of these financial statements.
16 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
Malta | 0.1% | ||||||||
Kindred Group PLC | 713 | $ | 11,180 | |||||
Netherlands | 1.8% | ||||||||
ASML Holding NV | 82 | 56,457 | ||||||
Eurocommercial Properties NV | 599 | 14,907 | ||||||
Flow Traders | 128 | 5,506 | ||||||
Koninklijke Ahold Delhaize NV | 276 | 8,206 | ||||||
NXP Semiconductors NV | 303 | 62,333 | ||||||
Royal Dutch Shell PLC, A Shares | 2,261 | 45,436 | ||||||
Wolters Kluwer NV | 94 | 9,448 | ||||||
Wolters Kluwer NV Sponsored ADR | 1,167 | 117,808 | ||||||
320,101 | ||||||||
New Zealand | 0.0% | ||||||||
Fisher & Paykel Healthcare Corp., Ltd., Class C | 134 | 2,915 | ||||||
Norway |�� 0.1% | ||||||||
Orkla ASA | 1,022 | 10,411 | ||||||
Telenor ASA | 479 | 8,082 | ||||||
Yara International ASA | 59 | 3,108 | ||||||
21,601 | ||||||||
Singapore | 0.1% | ||||||||
DBS Group Holdings, Ltd. | 800 | 17,753 | ||||||
Singapore Exchange, Ltd. | 400 | 3,330 | ||||||
21,083 | ||||||||
Spain | 0.3% | ||||||||
Corporacion Financiera Alba SA | 19 | 1,036 | ||||||
Iberdrola SA | 355 | 4,326 | ||||||
Industria de Diseno Textil SA ADR | 2,261 | 40,020 | ||||||
45,382 | ||||||||
Sweden | 1.2% | ||||||||
Assa Abloy AB ADR | 2,636 | 39,645 | ||||||
Axfood AB | 384 | 10,621 | ||||||
Epiroc AB ADR | 3,708 | 84,663 | ||||||
Hexagon AB ADR | 4,777 | 70,786 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 17
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
Swedish Match AB | 464 | $ | 3,958 | |||||
Telefonaktiebolaget LM Ericsson, B Shares | 350 | 4,401 | ||||||
214,074 | ||||||||
Switzerland | 1.2% | ||||||||
ABB, Ltd. Sponsored ADR | 1,781 | 60,536 | ||||||
Credit Suisse Group AG | 1,360 | 14,234 | ||||||
Roche Holding AG | 147 | 55,400 | ||||||
Swatch Group AG ADR | 3,683 | 63,200 | ||||||
Swisscom AG | 23 | 13,133 | ||||||
Tecan Group AG | 6 | 2,975 | ||||||
209,478 | ||||||||
United Kingdom | 3.6% | ||||||||
Barclays PLC | 19,107 | 45,317 | ||||||
Coca-Cola Europacific Partners PLC | 852 | 50,541 | ||||||
Diageo PLC Sponsored ADR | 560 | 107,346 | ||||||
Genus PLC | 38 | 2,608 | ||||||
GlaxoSmithKline PLC | 193 | 3,791 | ||||||
HSBC Holdings PLC (*) | 1,437 | 8,293 | ||||||
Imperial Brands PLC | 194 | 4,181 | ||||||
J Sainsbury PLC | 2,367 | 8,905 | ||||||
Lloyds Banking Group PLC (*) | 17,302 | 11,193 | ||||||
National Grid PLC | 397 | 5,055 | ||||||
Natwest Group PLC | 8,385 | 23,561 | ||||||
Prudential PLC ADR | 1,648 | 62,789 | ||||||
RELX PLC Sponsored ADR | 2,633 | 70,222 | ||||||
Rio Tinto PLC | 175 | 14,407 | ||||||
Rio Tinto PLC Sponsored ADR | 501 | 42,029 | ||||||
Rio Tinto, Ltd. | 26 | 2,469 | ||||||
Standard Chartered PLC | 9,828 | 62,619 | ||||||
Unilever PLC Sponsored ADR | 1,445 | 84,532 | ||||||
Vodafone Group PLC | 6,408 | 10,778 | ||||||
620,636 | ||||||||
United States | 45.5% | ||||||||
3M Co. | 105 | 20,856 | ||||||
Accenture PLC, Class A | 389 | 114,673 | ||||||
Activision Blizzard, Inc. | 548 | 52,301 |
The accompanying notes are an integral part of these financial statements.
18 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
Adobe, Inc. (*) | 164 | $ | 96,045 | |||||
Adtalem Global Education, Inc. (*) | 278 | 9,908 | ||||||
Advanced Micro Devices, Inc. (*) | 169 | 15,874 | ||||||
Aflac, Inc. | 374 | 20,069 | ||||||
AGCO Corp. | 65 | 8,475 | ||||||
Agilent Technologies, Inc. | 28 | 4,139 | ||||||
Akamai Technologies, Inc. (*) | 104 | 12,126 | ||||||
Alleghany Corp. (*) | 6 | 4,002 | ||||||
Allegion PLC | 87 | 12,119 | ||||||
Alphabet, Inc., Class A (*) | 61 | 148,949 | ||||||
Alphabet, Inc., Class C (*) | 60 | 150,379 | ||||||
Altria Group, Inc. | 85 | 4,053 | ||||||
Amazon.com, Inc. (*) | 70 | 240,811 | ||||||
Amdocs, Ltd. | 47 | 3,636 | ||||||
AMERCO | 27 | 15,914 | ||||||
Ameren Corp. | 28 | 2,241 | ||||||
American Electric Power Co., Inc. | 60 | 5,075 | ||||||
American Tower Corp. REIT | 15 | 4,052 | ||||||
American Water Works Co., Inc. | 23 | 3,545 | ||||||
Amgen, Inc. | 18 | 4,388 | ||||||
AMN Healthcare Services, Inc. (*) | 33 | 3,200 | ||||||
Anthem, Inc. | 74 | 28,253 | ||||||
Aon PLC, Class A | 460 | 109,830 | ||||||
Apple, Inc. | 3,342 | 457,720 | ||||||
Applied Materials, Inc. | 843 | 120,043 | ||||||
Automatic Data Processing, Inc. | 195 | 38,731 | ||||||
AutoZone, Inc. (*) | 19 | 28,352 | ||||||
Avery Dennison Corp. | 145 | 30,485 | ||||||
Badger Meter, Inc. | 33 | 3,238 | ||||||
Bank of America Corp. | 1,656 | 68,277 | ||||||
Berkshire Hathaway, Inc. Class B (*) | 41 | 11,395 | ||||||
Bio-Rad Laboratories, Inc. Class A (*) | 6 | 3,866 | ||||||
Bio-Techne Corp. | 33 | 14,859 | ||||||
Booz Allen Hamilton Holding Corp. | 688 | 58,604 | ||||||
Boston Scientific Corp. (*) | 1,217 | 52,039 | ||||||
Bristol-Myers Squibb Co. | 309 | 20,647 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 19
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
Broadcom, Inc. | 89 | $ | 42,439 | |||||
BRP, Inc. | 577 | 45,214 | ||||||
Bruker Corp. | 150 | 11,397 | ||||||
Brunswick Corp. | 118 | 11,755 | ||||||
Cabot Oil & Gas Corp. | 188 | 3,282 | ||||||
Cadence Design Systems, Inc. (*) | 119 | 16,282 | ||||||
Campbell Soup Co. | 55 | 2,507 | ||||||
Cboe Global Markets, Inc. | 282 | 33,572 | ||||||
CDW Corp. | 313 | 54,665 | ||||||
Centene Corp. (*) | 47 | 3,428 | ||||||
Charles River Laboratories International, Inc. (*) | 36 | 13,317 | ||||||
Charter Communications, Inc., Class A (*) | 21 | 15,150 | ||||||
Chemed Corp. | 13 | 6,169 | ||||||
Chubb, Ltd. | 22 | 3,497 | ||||||
Cigna Corp. | 95 | 22,522 | ||||||
Cisco Systems, Inc. | 530 | 28,090 | ||||||
Citizens Financial Group, Inc. | 425 | 19,495 | ||||||
Cognizant Technology Solutions Corp., Class A | 749 | 51,876 | ||||||
Colgate-Palmolive Co. | 216 | 17,572 | ||||||
Comcast Corp., Class A | 1,038 | 59,187 | ||||||
Costco Wholesale Corp. | 14 | 5,539 | ||||||
Crown Castle International Corp., REIT | 190 | 37,069 | ||||||
Cummins, Inc. | 61 | 14,872 | ||||||
CVS Health Corp. | 654 | 54,570 | ||||||
D.R. Horton, Inc. | 289 | 26,117 | ||||||
Deckers Outdoor Corp. (*) | 9 | 3,457 | ||||||
Deere & Co. | 279 | 98,406 | ||||||
Devon Energy Corp. | 817 | 23,848 | ||||||
Diamondback Energy, Inc. | 394 | 36,993 | ||||||
DocuSign, Inc. (*) | 57 | 15,935 | ||||||
Dolby Laboratories, Inc., Class A | 58 | 5,701 | ||||||
Dollar General Corp. | 393 | 85,041 | ||||||
Dominion Energy, Inc. | 41 | 3,016 | ||||||
Domino’s Pizza, Inc. | 20 | 9,330 | ||||||
DTE Energy Co. | 104 | 13,478 | ||||||
Electronic Arts, Inc. | 89 | 12,801 |
The accompanying notes are an integral part of these financial statements.
20 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
Eli Lilly & Co. | 224 | $ | 51,412 | |||||
Equitable Holdings, Inc. | 834 | 25,395 | ||||||
Evergy, Inc. | 57 | 3,445 | ||||||
Exlservice Holdings, Inc. (*) | 35 | 3,719 | ||||||
Extra Space Storage, Inc. REIT | 29 | 4,751 | ||||||
Exxon Mobil Corp. | 601 | 37,911 | ||||||
Facebook, Inc., Class A (*) | 440 | 152,992 | ||||||
Fifth Third Bancorp | 392 | 14,986 | ||||||
Flagstar Bancorp, Inc. | 227 | 9,595 | ||||||
FOX Corp., Class B | 1,123 | 39,530 | ||||||
FTI Consulting, Inc. (*) | 23 | 3,142 | ||||||
Generac Holdings, Inc. (*) | 49 | 20,342 | ||||||
General Mills, Inc. | 70 | 4,265 | ||||||
Graco, Inc. | 73 | 5,526 | ||||||
HCA Healthcare, Inc. | 204 | 42,175 | ||||||
Honeywell International, Inc. | 238 | 52,205 | ||||||
Hormel Foods Corp. | 145 | 6,924 | ||||||
Humana, Inc. | 97 | 42,944 | ||||||
Huntington Ingalls Industries, Inc. | 75 | 15,806 | ||||||
ICON PLC (*) | 102 | 21,084 | ||||||
IDEXX Laboratories, Inc. (*) | 72 | 45,472 | ||||||
Intel Corp. | 723 | 40,589 | ||||||
Intercontinental Exchange, Inc. | 767 | 91,043 | ||||||
Intuit, Inc. | 114 | 55,879 | ||||||
IQVIA Holdings, Inc. (*) | 542 | 131,337 | ||||||
Jack Henry & Associates, Inc. | 172 | 28,124 | ||||||
Johnson & Johnson | 1,471 | 242,333 | ||||||
Kellogg Co. | 505 | 32,487 | ||||||
Keysight Technologies, Inc. (*) | 50 | 7,720 | ||||||
Kimberly-Clark Corp. | 53 | 7,090 | ||||||
KLA Corp. | 119 | 38,581 | ||||||
Laboratory Corp. of America Holdings (*) | 131 | 36,136 | ||||||
Lam Research Corp. | 19 | 12,363 | ||||||
LHC Group, Inc. (*) | 83 | 16,622 | ||||||
Life Storage, Inc. REIT | 39 | 4,187 | ||||||
Lockheed Martin Corp. | 245 | 92,696 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 21
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
Louisiana-Pacific Corp. | 184 | $ | 11,093 | |||||
Lowe’s Cos., Inc. | 445 | 86,317 | ||||||
Manhattan Associates, Inc. (*) | 87 | 12,601 | ||||||
Maravai LifeSciences Holdings, Inc., Class A | 281 | 11,726 | ||||||
Martin Marietta Materials, Inc. | 43 | 15,128 | ||||||
Matson, Inc. | 47 | 3,008 | ||||||
McDonald’s Corp. | 369 | 85,235 | ||||||
McKesson Corp. | 264 | 50,487 | ||||||
MDU Resources Group, Inc. | 596 | 18,679 | ||||||
Medtronic PLC | 197 | 24,454 | ||||||
Merck & Co., Inc. | 394 | 30,641 | ||||||
Mettler-Toledo International, Inc. (*) | 13 | 18,009 | ||||||
Microsoft Corp. | 1,545 | 418,540 | ||||||
Moderna, Inc. (*) | 73 | 17,154 | ||||||
Mohawk Industries, Inc. (*) | 72 | 13,838 | ||||||
Monolithic Power Systems, Inc. | 9 | 3,361 | ||||||
Moody’s Corp. | 156 | 56,530 | ||||||
Motorola Solutions, Inc. | 466 | 101,052 | ||||||
MYR Group, Inc. (*) | 46 | 4,182 | ||||||
Netflix, Inc. (*) | 80 | 42,257 | ||||||
Newmont Corp. | 36 | 2,282 | ||||||
Northrop Grumman Corp. | 140 | 50,880 | ||||||
NVIDIA Corp. | 123 | 98,412 | ||||||
O’Reilly Automotive, Inc. (*) | 5 | 2,831 | ||||||
Old Dominion Freight Line, Inc. | 142 | 36,040 | ||||||
Oracle Corp. | 439 | 34,172 | ||||||
Organon & Co. (*) | 17 | 514 | ||||||
Ovintiv, Inc. | 205 | 6,451 | ||||||
Owens Corning | 111 | 10,867 | ||||||
Paychex, Inc. | 237 | 25,430 | ||||||
PayPal Holdings, Inc. (*) | 231 | 67,332 | ||||||
PennyMac Financial Services, Inc. | 203 | 12,529 | ||||||
PepsiCo, Inc. | 78 | 11,557 | ||||||
Philip Morris International, Inc. | 708 | 70,170 | ||||||
Pioneer Natural Resources Co. | 48 | 7,801 | ||||||
Portland General Electric Co. | 56 | 2,580 |
The accompanying notes are an integral part of these financial statements.
22 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
Premier, Inc., Class A | 94 | $ | 3,270 | |||||
PTC, Inc. (*) | 460 | 64,980 | ||||||
Public Storage REIT | 37 | 11,126 | ||||||
PulteGroup, Inc. | 443 | 24,175 | ||||||
QUALCOMM, Inc. | 282 | 40,306 | ||||||
Quanta Services, Inc. | 133 | 12,046 | ||||||
Quest Diagnostics, Inc. | 33 | 4,355 | ||||||
Quidel Corp. (*) | 28 | 3,587 | ||||||
Realty Income Corp. REIT | 47 | 3,137 | ||||||
Republic Services, Inc. | 145 | 15,951 | ||||||
ResMed, Inc. | 22 | 5,423 | ||||||
RH (*) | 20 | 13,580 | ||||||
Rockwell Automation, Inc. | 186 | 53,200 | ||||||
RPM International, Inc. | 104 | 9,223 | ||||||
S&P Global, Inc. | 285 | 116,978 | ||||||
SBA Communications Corp. REIT | 12 | 3,824 | ||||||
Select Medical Holdings Corp. | 317 | 13,396 | ||||||
Service Corp. International | 193 | 10,343 | ||||||
ServiceNow, Inc. (*) | 24 | 13,189 | ||||||
Skyworks Solutions, Inc. | 67 | 12,847 | ||||||
SLM Corp. | 756 | 15,831 | ||||||
Southwest Gas Holdings, Inc. | 145 | 9,598 | ||||||
Starbucks Corp. | 107 | 11,964 | ||||||
Stepan Co. | 23 | 2,766 | ||||||
STERIS PLC | 22 | 4,539 | ||||||
Synopsys, Inc. (*) | 364 | 100,388 | ||||||
Targa Resources Corp. | 447 | 19,869 | ||||||
Target Corp. | 287 | 69,379 | ||||||
Tesla, Inc. (*) | 131 | 89,041 | ||||||
Texas Instruments, Inc. | 406 | 78,074 | ||||||
Texas Pacific Land Corp. | 7 | 11,198 | ||||||
The Allstate Corp. | 22 | 2,870 | ||||||
The Charles Schwab Corp. | 808 | 58,830 | ||||||
The Clorox Co. | 72 | 12,954 | ||||||
The Coca-Cola Co. | 1,817 | 98,318 | ||||||
The Hartford Financial Services Group, Inc. | 59 | 3,656 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 23
Description | Shares | Fair Value | ||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
The Hershey Co. | 150 | $ | 26,127 | |||||
The Home Depot, Inc. | 237 | 75,577 | ||||||
The J.M. Smucker Co. | 25 | 3,239 | ||||||
The Kroger Co. | 160 | 6,130 | ||||||
The Mosaic Co. | 363 | 11,583 | ||||||
The Procter & Gamble Co. | 725 | 97,824 | ||||||
The Sherwin-Williams Co. | 100 | 27,245 | ||||||
Thermo Fisher Scientific, Inc. | 261 | 131,667 | ||||||
TopBuild Corp. (*) | 128 | 25,316 | ||||||
Tractor Supply Co. | 151 | 28,095 | ||||||
Trimble, Inc. (*) | 135 | 11,047 | ||||||
Tyler Technologies, Inc. (*) | 7 | 3,167 | ||||||
Tyson Foods, Inc., Class A | 185 | 13,646 | ||||||
United Parcel Service, Inc., Class B | 93 | 19,341 | ||||||
United Therapeutics Corp. (*) | 37 | 6,638 | ||||||
UnitedHealth Group, Inc. | 273 | 109,320 | ||||||
Universal Health Services, Inc., Class B | 71 | 10,397 | ||||||
Verizon Communications, Inc. | 3,186 | 178,512 | ||||||
Vertex Pharmaceuticals, Inc. (*) | 14 | 2,823 | ||||||
Viatris, Inc. | 133 | 1,901 | ||||||
Visa, Inc., Class A | 372 | 86,981 | ||||||
Walmart, Inc. | 279 | 39,345 | ||||||
Warner Music Group Corp., Class A | 724 | 26,093 | ||||||
Waste Management, Inc. | 27 | 3,783 | ||||||
Waters Corp. (*) | 15 | 5,184 | ||||||
Watts Water Technologies, Inc., Class A | 28 | 4,085 | ||||||
WD-40 Co. | 14 | 3,588 | ||||||
WEC Energy Group, Inc. | 53 | 4,714 | ||||||
Werner Enterprises, Inc. | 59 | 2,627 | ||||||
West Pharmaceutical Services, Inc. | 16 | 5,746 | ||||||
White Mountains Insurance Group, Ltd. | 3 | 3,444 | ||||||
Williams-Sonoma, Inc. | 86 | 13,730 | ||||||
WW Grainger, Inc. | 32 | 14,016 | ||||||
Zoetis, Inc. | 547 | 101,939 | ||||||
7,944,787 | ||||||||
Total Common Stocks (Cost $8,763,553) | 11,851,942 |
The accompanying notes are an integral part of these financial statements.
24 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
Corporate Bonds | 10.6% | ||||||||||
Canada | 0.6% | ||||||||||
Canadian Imperial Bank of Commerce, 0.950%, 10/23/25 | USD | 65 | $ | 64,572 | ||||||
Rogers Communications, Inc., 3.250%, 05/01/29 | CAD | 44 | 37,104 | |||||||
101,676 | ||||||||||
France | 0.3% | ||||||||||
Schneider Electric SE, 2.950%, 09/27/22 | USD | 50 | 51,541 | |||||||
Germany | 0.3% | ||||||||||
Daimler AG, 0.750%, 09/10/30 | EUR | 45 | 54,883 | |||||||
Switzerland | 0.1% | ||||||||||
ABB Finance USA, Inc., 4.375%, 05/08/42 | USD | 12 | 15,512 | |||||||
United Kingdom | 1.4% | ||||||||||
Tesco Corporate Treasury Services PLC, 2.750%, 04/27/30 | GBP | 100 | 147,620 | |||||||
Unilever Capital Corp., 1.375%, 09/14/30 | USD | 100 | 96,594 | |||||||
244,214 | ||||||||||
United States | 7.9% | ||||||||||
Adobe, Inc., 2.300%, 02/01/30 | USD | 50 | 52,060 | |||||||
Alphabet, Inc., 1.100%, 08/15/30 | USD | 55 | 52,151 | |||||||
Amazon.com, Inc., 3.150%, 08/22/27 | USD | 50 | 55,244 | |||||||
American Express Credit Corp., 3.300%, 05/03/27 | USD | 45 | 49,780 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 25
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
Apple, Inc., 3.000%, 06/20/27 | USD | 50 | $ | 54,973 | ||||||
Ball Corp., 4.875%, 03/15/26 | USD | 25 | 27,844 | |||||||
Bank of America Corp.: | ||||||||||
1.486% (SOFR + 1.460%), 05/19/24 (§) | USD | 25 | 25,427 | |||||||
3.248%, 10/21/27 | USD | 50 | 54,237 | |||||||
Clean Harbors, Inc. Co., 4.875%, 07/15/27 | USD | 25 | 26,188 | |||||||
Dell International LLC, 5.300%, 10/01/29 | USD | 55 | 66,365 | |||||||
John Deere Financial, Inc., 2.410%, 01/14/25 | CAD | 65 | 54,369 | |||||||
Johnson & Johnson, 3.625%, 03/03/37 | USD | 23 | 26,836 | |||||||
Johnson Controls International PLC, 1.750%, 09/15/30 | USD | 25 | 24,075 | |||||||
JPMorgan Chase & Co., 3.540% (USD LIBOR 3 Month + 1.380%), 05/01/28 (§) | USD | 60 | 65,968 | |||||||
Kimberly-Clark Corp., 3.200%, 04/25/29 | USD | 38 | 42,075 | |||||||
McDonald’s Corp., 3.125%, 03/04/25 | CAD | 65 | 55,599 | |||||||
Microsoft Corp., 3.500%, 11/15/42 | USD | 30 | 34,672 | |||||||
Morgan Stanley, 3.625%, 01/20/27 | USD | 50 | 55,441 | |||||||
Mueller Water Products, Inc., 4.000%, 06/15/29 (#) | USD | 25 | 25,691 | |||||||
PepsiCo, Inc., 2.875%, 10/15/49 | USD | 35 | 36,102 | |||||||
Pfizer, Inc., 2.625%, 04/01/30 | USD | 45 | 47,924 | |||||||
Prologis LP, 1.250%, 10/15/30 | USD | 50 | 47,045 |
The accompanying notes are an integral part of these financial statements.
26 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
Sealed Air Corp., 4.875%, 12/01/22 | USD | 35 | $ | 36,400 | ||||||
Service Corp. International, 4.625%, 12/15/27 | USD | 25 | 26,437 | |||||||
Starbucks Corp., 4.450%, 08/15/49 | USD | 40 | 49,615 | |||||||
The Goldman Sachs Group, Inc., 1.992% (SOFR + 1.090%), 01/27/32 (§) | USD | 50 | 48,560 | |||||||
The Home Depot, Inc., 5.875%, 12/16/36 | USD | 30 | 42,858 | |||||||
The Procter & Gamble Co., 1.200%, 10/29/30 | USD | 25 | 23,840 | |||||||
Toyota Motor Credit Corp., 2.150%, 02/13/30 | USD | 50 | 51,247 | |||||||
United Rentals North America, Inc., 4.875%, 01/15/28 | USD | 25 | 26,512 | |||||||
Verizon Communications, Inc., 3.875%, 02/08/29 | USD | 59 | 67,403 | |||||||
Visa, Inc., 0.750%, 08/15/27 | USD | 25 | 24,232 | |||||||
1,377,170 | ||||||||||
Total Corporate Bonds (Cost $1,759,720) | 1,844,996 |
Description | Shares | Fair Value | ||||||
Exchange-Traded Funds | 5.0% | ||||||||
iShares MSCI World ETF (Cost $586,004) | 6,954 | $ | 880,168 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 27
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
Foreign Government Obligations | 11.8% | ||||||||||
Australia | 0.6% | ||||||||||
New South Wales Treasury Corp., 1.250%, 11/20/30 | AUD | 70 | $ | 50,466 | ||||||
Queensland Treasury Corp., 1.250%, 03/10/31 | AUD | 70 | 50,385 | |||||||
100,851 | ||||||||||
Bahamas | 0.5% | ||||||||||
Commonwealth of Bahamas, 6.950%, 11/20/29 | USD | 80 | 84,190 | |||||||
Canada | 1.0% | ||||||||||
City of Vancouver, 2.900%, 11/20/25 | CAD | 40 | 34,584 | |||||||
Export Development Canada, 1.650%, 07/31/24 | CAD | 65 | 53,771 | |||||||
Province of Quebec: | ||||||||||
2.500%, 04/20/26 | USD | 25 | 26,774 | |||||||
1.850%, 02/13/27 | CAD | 75 | 62,112 | |||||||
177,241 | ||||||||||
Chile | 1.4% | ||||||||||
Bonos de la Tesoreria de la Republica en pesos: | ||||||||||
4.500%, 03/01/26 | CLP | 15,000 | 21,279 | |||||||
2.300%, 10/01/28 | CLP | 85,000 | 100,177 | |||||||
Republic of Chile, 0.830%, 07/02/31 | EUR | 100 | 120,116 | |||||||
241,572 | ||||||||||
Colombia | 0.2% | ||||||||||
Republic of Colombia, 9.850%, 06/28/27 | COP | 136,000 | 42,396 | |||||||
Czech Republic | 0.8% | ||||||||||
Czech Republic, 2.000%, 10/13/33 | CZK | 2,870 | 135,521 |
The accompanying notes are an integral part of these financial statements.
28 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
Hungary | 0.9% | ||||||||||
Hungary Government Bonds: | ||||||||||
2.750%, 12/22/26 | HUF | 12,990 | $ | 45,218 | ||||||
3.000%, 10/27/27 | HUF | 12,740 | 44,889 | |||||||
2.250%, 04/20/33 | HUF | 14,530 | 46,158 | |||||||
Hungary Government International Bonds, 1.750%, 06/05/35 | EUR | 20 | 25,128 | |||||||
161,393 | ||||||||||
Italy | 0.3% | ||||||||||
Italy Buoni Poliennali Del Tesoro, 1.450%, 03/01/36 | EUR | 40 | 48,877 | |||||||
Mexico | 0.3% | ||||||||||
Mexican Bonos, 7.500%, 06/03/27 | MXN | 900 | 47,096 | |||||||
United Mexican States, 6.750%, 02/06/24 | GBP | 5 | 7,936 | |||||||
55,032 | ||||||||||
New Zealand | 1.0% | ||||||||||
Housing New Zealand, Ltd. MTN, 3.420%, 10/18/28 | NZD | 80 | 61,567 | |||||||
New Zealand Local Government Funding Agency Bonds, 2.000%, 04/15/37 | NZD | 40 | 25,279 | |||||||
New Zealand Local Government Funding Agency Bonds, 1.500%, 04/20/29 | NZD | 120 | 81,012 | |||||||
167,858 | ||||||||||
Norway | 1.3% | ||||||||||
Oslo Kommune: | ||||||||||
2.350%, 09/04/24 | NOK | 1,000 | 119,629 | |||||||
0.750% (NIBOR3M + 0.460%), 05/06/26 (§) | NOK | 1,000 | 117,159 | |||||||
236,788 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 29
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
Panama | 0.5% | ||||||||||
Republic of Panama, 8.875%, 09/30/27 | USD | 70 | $ | 96,504 | ||||||
Peru | 0.2% | ||||||||||
Peru Government Bonds, 6.150%, 08/12/32 | PEN | 165 | 44,837 | |||||||
Poland | 0.5% | ||||||||||
Poland Government Bonds: | ||||||||||
2.500%, 07/25/27 | PLN | 127 | 35,469 | |||||||
2.750%, 10/25/29 | PLN | 168 | 48,261 | |||||||
83,730 | ||||||||||
Romania | 1.0% | ||||||||||
Romanian Government Bonds: | ||||||||||
4.750%, 02/24/25 | RON | 370 | 95,533 | |||||||
3.650%, 09/24/31 | RON | 180 | 43,751 | |||||||
Romanian Government International Bonds, 3.875%, 10/29/35 | EUR | 25 | 34,831 | |||||||
174,115 | ||||||||||
Singapore | 0.3% | ||||||||||
Singapore Government Bonds, 3.375%, 09/01/33 | SGD | 55 | 48,100 | |||||||
Spain | 0.3% | ||||||||||
Spain Government Bonds, 1.200%, 10/31/40 | EUR | 39 | 46,911 | |||||||
Thailand | 0.3% | ||||||||||
Thailand Government Bonds, 1.585%, 12/17/35 | THB | 1,580 | 45,634 |
The accompanying notes are an integral part of these financial statements.
30 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
United Kingdom | 0.4% | ||||||||||
United Kingdom Gilt: | ||||||||||
1.750%, 09/07/37 | GBP | 30 | $ | 45,374 | ||||||
1.500%, 07/22/47 | GBP | 15 | 21,948 | |||||||
67,322 | ||||||||||
Total Foreign Government Obligations (Cost $2,017,721) | 2,058,872 | |||||||||
Supranational Bonds | 2.2% | ||||||||||
Asian Development Bank, 2.125%, 03/19/25 | USD | 13 | 13,676 | |||||||
European Bank for Reconstruction & Development, 1.625%, 09/27/24 | USD | 25 | 25,818 | |||||||
European Investment Bank, 1.000%, 01/28/28 | CAD | 60 | 46,845 | |||||||
Inter-American Development Bank, 7.875%, 03/14/23 | IDR | 630,000 | 45,716 | |||||||
International Bank for Reconstruction & Development: | ||||||||||
2.500%, 08/03/23 | CAD | 70 | 58,707 | |||||||
1.900%, 01/16/25 | CAD | 40 | 33,304 | |||||||
2.900%, 11/26/25 | AUD | 55 | 44,803 | |||||||
International Bank for Reconstruction & Development MTN, 1.250%, 03/16/26 | NOK | 410 | 47,401 | |||||||
International Finance Corp., 2.125%, 04/07/26 | USD | 25 | 26,440 | |||||||
International Finance Corp. MTN, 1.500%, 04/15/35 | AUD | 72 | 49,566 | |||||||
Total Supranational Bonds (Cost $371,024) | 392,276 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 31
Description | Security Currency | Principal Amount (000) | Fair Value | ||||||||
Lazard Global Dynamic Multi-Asset Portfolio (continued) | |||||||||||
US Municipal Bonds | 1.3% | |||||||||||
California | 1.0% | |||||||||||
State of California: 7.550%, 04/01/39 | USD | 105 | $ | 179,025 | |||||||
New York | 0.3% | |||||||||||
New York State Urban Development Corp., Series B, 3.900%, 03/15/33 | USD | 40 | 45,397 | ||||||||
Total US Municipal Bonds (Cost $217,708) | 224,422 | ||||||||||
Description | Shares | Fair Value | |||||||||
Short-Term Investments | 1.5% | |||||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $256,444) | 256,444 | $ | 256,444 | ||||||||
Total Investments | 100.2% (Cost $13,972,174) (») | $ | 17,509,120 | |||||||||
Liabilities in Excess of Cash and Other Assets | (0.2)% | (28,490 | ) | |||||||||
Net Assets | 100.0% | $ | 17,480,630 |
The accompanying notes are an integral part of these financial statements.
32 Semi-Annual Report
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Forward Currency Contracts open at June 30, 2021:
Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||
AUD | 73,653 | USD | 55,718 | HSB | 07/16/21 | $ | — | $ | 478 | |||||||||
AUD | 767,777 | USD | 593,937 | HSB | 07/16/21 | — | 18,100 | |||||||||||
AUD | 16,376 | USD | 12,581 | JPM | 07/16/21 | — | 299 | |||||||||||
AUD | 39,641 | USD | 31,100 | JPM | 07/16/21 | — | 1,369 | |||||||||||
AUD | 105,539 | USD | 81,909 | JPM | 07/16/21 | — | 2,755 | |||||||||||
CAD | 9,773 | USD | 8,015 | HSB | 07/16/21 | — | 131 | |||||||||||
CAD | 147,558 | USD | 119,704 | HSB | 07/16/21 | — | 669 | |||||||||||
CAD | 920,467 | USD | 734,388 | HSB | 07/16/21 | 8,156 | — | |||||||||||
CHF | 74,085 | USD | 80,532 | HSB | 07/16/21 | — | 431 | |||||||||||
CLP | 23,430,053 | USD | 32,273 | CIT | 09/15/21 | — | 432 | |||||||||||
CNH | 616,359 | USD | 93,811 | HSB | 07/16/21 | 1,411 | — | |||||||||||
CNH | 2,412,973 | USD | 376,118 | HSB | 09/03/21 | — | 4,583 | |||||||||||
CZK | 389,412 | USD | 18,638 | HSB | 07/16/21 | — | 533 | |||||||||||
CZK | 759,017 | USD | 35,473 | HSB | 07/16/21 | — | 183 | |||||||||||
CZK | 208,275 | USD | 9,899 | JPM | 07/16/21 | — | 215 | |||||||||||
CZK | 827,245 | USD | 39,200 | JPM | 07/16/21 | — | 738 | |||||||||||
EUR | 703,541 | USD | 843,144 | CIT | 07/16/21 | — | 8,675 | |||||||||||
EUR | 6,135 | USD | 7,280 | HSB | 07/16/21 | — | 4 | |||||||||||
EUR | 43,385 | USD | 52,000 | HSB | 07/16/21 | — | 541 | |||||||||||
EUR | 47,297 | USD | 56,438 | HSB | 07/16/21 | — | 339 | |||||||||||
EUR | 13,030 | USD | 15,989 | JPM | 07/16/21 | — | 535 | |||||||||||
EUR | 94,582 | USD | 112,479 | JPM | 07/16/21 | — | 296 | |||||||||||
EUR | 130,233 | USD | 156,067 | JPM | 07/16/21 | — | 1,598 | |||||||||||
EUR | 44,183 | USD | 52,753 | SSB | 09/24/21 | — | 274 | |||||||||||
GBP | 16,235 | USD | 22,643 | HSB | 07/16/21 | — | 184 | |||||||||||
GBP | 363,972 | USD | 501,874 | HSB | 07/16/21 | 1,631 | — | |||||||||||
GBP | 10,563 | USD | 14,957 | JPM | 07/16/21 | — | 345 | |||||||||||
GBP | 14,840 | USD | 21,000 | JPM | 07/16/21 | — | 471 | |||||||||||
GBP | 25,300 | USD | 35,918 | JPM | 07/16/21 | — | 920 | |||||||||||
HUF | 6,930,258 | USD | 23,256 | HSB | 07/16/21 | 126 | — | |||||||||||
HUF | 19,795,701 | USD | 69,643 | HSB | 07/16/21 | — | 2,854 | |||||||||||
HUF | 90,099,605 | USD | 298,760 | HSB | 07/16/21 | 5,226 | — | |||||||||||
HUF | 5,153,792 | USD | 18,006 | JPM | 07/16/21 | — | 617 | |||||||||||
INR | 2,677,780 | USD | 35,730 | JPM | 09/30/21 | — | 103 | |||||||||||
JPY | 41,588,686 | USD | 383,020 | CIT | 07/16/21 | — | 8,626 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 33
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||
JPY | 54,980,289 | USD | 506,357 | HSB | 07/16/21 | $ | — | $ | 11,408 | |||||||||
JPY | 1,454,069 | USD | 13,176 | SSB | 09/22/21 | — | 78 | |||||||||||
KRW | 82,505,468 | USD | 73,060 | JPM | 08/10/21 | — | 56 | |||||||||||
MXN | 243,979 | USD | 11,898 | HSB | 07/16/21 | 320 | — | |||||||||||
MXN | 185,707 | USD | 9,237 | JPM | 07/16/21 | 63 | — | |||||||||||
MXN | 210,617 | USD | 10,500 | JPM | 07/16/21 | 47 | — | |||||||||||
NOK | 100,229 | USD | 11,774 | HSB | 07/16/21 | — | 133 | |||||||||||
NOK | 3,071,590 | USD | 367,493 | HSB | 07/16/21 | — | 10,727 | |||||||||||
NZD | 18,372 | USD | 13,153 | HSB | 07/16/21 | — | 311 | |||||||||||
NZD | 38,444 | USD | 26,950 | HSB | 07/16/21 | — | 78 | |||||||||||
NZD | 42,643 | USD | 31,100 | HSB | 07/16/21 | — | 1,293 | |||||||||||
NZD | 581,004 | USD | 415,046 | HSB | 07/16/21 | — | 8,933 | |||||||||||
NZD | 29,336 | USD | 20,963 | JPM | 07/16/21 | — | 457 | |||||||||||
PEN | 47,785 | USD | 12,348 | CIT | 08/10/21 | 99 | — | |||||||||||
PLN | 82,427 | USD | 21,629 | HSB | 07/16/21 | — | 10 | |||||||||||
PLN | 131,011 | USD | 35,400 | HSB | 07/16/21 | — | 1,038 | |||||||||||
PLN | 54,237 | USD | 14,786 | JPM | 07/16/21 | — | 561 | |||||||||||
PLN | 76,226 | USD | 20,863 | JPM | 07/16/21 | — | 870 | |||||||||||
RON | 7,470 | USD | 1,802 | HSB | 07/16/21 | — | 5 | |||||||||||
RON | 160,880 | USD | 38,940 | HSB | 07/16/21 | — | 238 | |||||||||||
RON | 28,451 | USD | 7,000 | JPM | 07/16/21 | — | 156 | |||||||||||
RON | 51,637 | USD | 12,723 | JPM | 07/16/21 | — | 302 | |||||||||||
RUB | 2,127,197 | USD | 28,620 | JPM | 07/16/21 | 400 | — | |||||||||||
SEK | 262,393 | USD | 31,127 | HSB | 07/16/21 | — | 463 | |||||||||||
SGD | 17,923 | USD | 13,367 | HSB | 07/16/21 | — | 38 | |||||||||||
SGD | 185,671 | USD | 139,080 | JPM | 07/16/21 | — | 1,004 | |||||||||||
THB | 1,043,987 | USD | 33,462 | HSB | 07/16/21 | — | 890 | |||||||||||
USD | 108,249 | AUD | 139,911 | CIT | 07/16/21 | 3,315 | — | |||||||||||
USD | 9,900 | AUD | 12,887 | HSB | 07/16/21 | 234 | — | |||||||||||
USD | 23,900 | AUD | 31,291 | HSB | 07/16/21 | 431 | — | |||||||||||
USD | 48,657 | AUD | 62,731 | HSB | 07/16/21 | 1,608 | — | |||||||||||
USD | 565,957 | AUD | 731,424 | JPM | 07/16/21 | 17,386 | — | |||||||||||
USD | 180,335 | AUD | 233,105 | MSC | 07/16/21 | 5,505 | — | |||||||||||
USD | 491,978 | CAD | 616,684 | CIT | 07/16/21 | — | 5,503 | |||||||||||
USD | 8,200 | CAD | 10,076 | HSB | 07/16/21 | 72 | — | |||||||||||
USD | 10,500 | CAD | 12,804 | HSB | 07/16/21 | 171 | — |
The accompanying notes are an integral part of these financial statements.
34 Semi-Annual Report
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||
USD | 34,600 | CAD | 42,337 | HSB | 07/16/21 | $ | 447 | $ | — | |||||||||
USD | 31,600 | CAD | 38,117 | JPM | 07/16/21 | 851 | — | |||||||||||
USD | 66,387 | CAD | 82,289 | JPM | 07/16/21 | 5 | — | |||||||||||
USD | 66,764 | CAD | 82,778 | JPM | 07/16/21 | — | 13 | |||||||||||
USD | 459,008 | CAD | 575,361 | JPM | 07/16/21 | — | 5,138 | |||||||||||
USD | 28,034 | CAD | 34,703 | SSB | 09/24/21 | 40 | — | |||||||||||
USD | 4,607 | CHF | 4,238 | HSB | 07/16/21 | 25 | — | |||||||||||
USD | 11,900 | CHF | 10,758 | HSB | 07/16/21 | 268 | — | |||||||||||
USD | 18,800 | CHF | 16,877 | HSB | 07/16/21 | 552 | — | |||||||||||
USD | 7,023 | CHF | 6,443 | SSB | 09/24/21 | 44 | — | |||||||||||
USD | 163,959 | CLP | 114,842,123 | CIT | 09/15/21 | 7,893 | — | |||||||||||
USD | 18,000 | CNH | 117,105 | HSB | 07/16/21 | — | 92 | |||||||||||
USD | 92,000 | CNH | 591,757 | HSB | 07/16/21 | 579 | — | |||||||||||
USD | 42,952 | COP | 162,574,447 | CIT | 08/10/21 | — | 287 | |||||||||||
USD | 15,500 | CZK | 328,479 | HSB | 07/16/21 | 228 | — | |||||||||||
USD | 91,660 | CZK | 1,981,432 | HSB | 07/16/21 | — | 465 | |||||||||||
USD | 75,256 | CZK | 1,626,859 | JPM | 07/16/21 | — | 383 | |||||||||||
USD | 12,686 | DKK | 79,017 | SSB | 09/24/21 | 66 | — | |||||||||||
USD | 35,000 | EUR | 28,839 | CIT | 07/16/21 | 794 | — | |||||||||||
USD | 236,477 | EUR | 197,322 | CIT | 07/16/21 | 2,433 | — | |||||||||||
USD | 8,400 | EUR | 6,883 | HSB | 07/16/21 | 236 | — | |||||||||||
USD | 37,600 | EUR | 30,995 | HSB | 07/16/21 | 837 | — | |||||||||||
USD | 52,500 | EUR | 43,619 | HSB | 07/16/21 | 763 | — | |||||||||||
USD | 9,900 | EUR | 8,128 | JPM | 07/16/21 | 259 | — | |||||||||||
USD | 247,300 | EUR | 205,292 | JPM | 07/16/21 | 3,803 | — | |||||||||||
USD | 10,200 | GBP | 7,197 | HSB | 07/16/21 | 243 | — | |||||||||||
USD | 11,700 | GBP | 8,475 | HSB | 07/16/21 | — | 24 | |||||||||||
USD | 62,100 | GBP | 44,282 | HSB | 07/16/21 | 842 | — | |||||||||||
USD | 489,721 | GBP | 355,159 | HSB | 07/16/21 | — | 1,591 | |||||||||||
USD | 7,100 | GBP | 5,120 | JPM | 07/16/21 | 17 | — | |||||||||||
USD | 2,030 | GBP | 1,459 | SSB | 09/24/21 | 11 | — | |||||||||||
USD | 11,314 | HKD | 87,840 | SSB | 09/24/21 | — | 1 | |||||||||||
USD | 8,300 | HUF | 2,431,236 | HSB | 07/16/21 | 97 | — | |||||||||||
USD | 45,722 | HUF | 13,691,605 | HSB | 07/16/21 | — | 472 | |||||||||||
USD | 455,781 | HUF | 137,463,470 | JPM | 07/16/21 | — | 8,006 | |||||||||||
USD | 2,098 | IDR | 30,664,571 | JPM | 09/30/21 | 15 | — |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 35
Lazard Global Dynamic Multi-Asset Portfolio (concluded)
Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||
USD | 37,000 | JPY | 4,080,304 | CIT | 07/16/21 | $ 268 | $ — | ||||||||||||
USD | 6,600 | JPY | 720,964 | HSB | 07/16/21 | 110 | — | ||||||||||||
USD | 20,500 | JPY | 2,256,496 | HSB | 07/16/21 | 186 | — | ||||||||||||
USD | 34,200 | JPY | 3,736,897 | HSB | 07/16/21 | 559 | — | ||||||||||||
USD | 158,900 | JPY | 17,533,105 | JPM | 07/16/21 | 1,062 | — | ||||||||||||
USD | 91,903 | JPY | 10,122,334 | SSB | 09/24/21 | 725 | — | ||||||||||||
USD | 11,900 | MXN | 241,707 | HSB | 07/16/21 | — | 204 | ||||||||||||
USD | 18,429 | MXN | 373,273 | HSB | 07/16/21 | — | 264 | ||||||||||||
USD | 61,246 | NOK | 511,498 | HSB | 07/16/21 | 1,836 | — | ||||||||||||
USD | 607,343 | NOK | 5,077,782 | JPM | 07/16/21 | 17,557 | — | ||||||||||||
USD | 20,942 | NOK | 180,091 | SSB | 09/24/21 | 20 | — | ||||||||||||
USD | 9,500 | NZD | 13,433 | HSB | 07/16/21 | 111 | — | ||||||||||||
USD | 191,864 | NZD | 268,582 | HSB | 07/16/21 | 4,129 | — | ||||||||||||
USD | 379,170 | NZD | 530,783 | HSB | 07/16/21 | 8,161 | — | ||||||||||||
USD | 63,900 | NZD | 88,696 | JPM | 07/16/21 | 1,903 | — | ||||||||||||
USD | 59,681 | PEN | 227,827 | CIT | 08/10/21 | 341 | — | ||||||||||||
USD | 9,500 | PLN | 35,678 | HSB | 07/16/21 | 142 | — | ||||||||||||
USD | 14,592 | PLN | 55,325 | HSB | 07/16/21 | 81 | — | ||||||||||||
USD | 117,334 | PLN | 444,900 | JPM | 07/16/21 | 645 | — | ||||||||||||
USD | 19,100 | RON | 78,221 | HSB | 07/16/21 | 283 | — | ||||||||||||
USD | 30,245 | RON | 124,900 | HSB | 07/16/21 | 199 | — | ||||||||||||
USD | 80,472 | RON | 332,472 | JPM | 07/16/21 | 492 | — | ||||||||||||
USD | 1,866 | SEK | 15,731 | HSB | 07/16/21 | 28 | — | ||||||||||||
USD | 187,149 | SGD | 249,844 | JPM | 07/16/21 | 1,350 | — | ||||||||||||
USD | 40,757 | THB | 1,310,461 | HSB | 07/16/21 | — | 129 | ||||||||||||
Total gross unrealized appreciation/depreciation on Forward Currency Contracts | $ 107,737 | $ 118,919 |
The accompanying notes are an integral part of these financial statements.
36 Semi-Annual Report
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 37
Description | Shares | Fair Value | |||||||
Lazard Opportunistic Strategies Portfolio (concluded) | |||||||||
Securities Sold Short | (3.8)% | |||||||||
Exchange-Traded Funds | (3.8)% | |||||||||
iShares 20+ Year Treasury Bond ETF (Proceeds $3,238,622) | (21,732 | ) | $ | (3,137,014 | ) | ||||
Total Investments | 101.4% (Cost and short proceeds $67,278,193) | $ | 83,027,432 | |||||||
Liabilities in Excess of Cash and Other Assets | (1.4)% | (1,147,831 | ) | |||||||
Net Assets | 100.0% | $ | 81,879,601 |
The accompanying notes are an integral part of these financial statements.
38 Semi-Annual Report
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 39
Description | Shares | Fair Value | ||||||
Lazard Real Assets Portfolio (•) (continued) | ||||||||
Country Garden Holdings Co., Ltd. | 21,000 | $ | 23,531 | |||||
Gemdale Properties & Investment Corp., Ltd. | 140,000 | 17,851 | ||||||
Hopson Development Holdings, Ltd. | 17,900 | 82,073 | ||||||
KWG Group Holdings, Ltd. | 32,500 | 43,534 | ||||||
Logan Group Co., Ltd. | 26,000 | 38,912 | ||||||
Longfor Group Holdings, Ltd. | 13,000 | 72,837 | ||||||
Powerlong Commercial Management Holdings, Ltd. | 9,000 | 31,645 | ||||||
Powerlong Real Estate Holdings, Ltd. | 56,000 | 48,107 | ||||||
Shenzhen Investment, Ltd. | 130,000 | 40,017 | ||||||
Shoucheng Holdings, Ltd. | 96,000 | 22,998 | ||||||
Sunac China Holdings, Ltd. | 7,000 | 24,027 | ||||||
Sunac Services Holdings, Ltd. | 8,000 | 29,727 | ||||||
Suning Universal Co., Ltd., Class A (*) | 18,900 | 24,402 | ||||||
Yuexiu Property Co., Ltd. | 26,400 | 27,814 | ||||||
Zhongliang Holdings Group Co., Ltd. | 46,000 | 28,375 | ||||||
663,561 | ||||||||
France | 3.0% | ||||||||
Air Liquide SA | 374 | 65,534 | ||||||
Eutelsat Communications SA | 12,123 | 141,688 | ||||||
Gecina SA REIT | 179 | 27,433 | ||||||
Klepierre SA REIT | 829 | 21,371 | ||||||
Nexity SA | 783 | 39,168 | ||||||
Unibail-Rodamco-Westfield REIT (*) | 237 | 20,526 | ||||||
Vinci SA | 6,500 | 694,070 | ||||||
1,009,790 | ||||||||
Germany | 1.1% | ||||||||
Aroundtown SA | 3,367 | 26,233 | ||||||
Deutsche Wohnen SE | 1,657 | 101,437 | ||||||
Sirius Real Estate, Ltd. | 21,519 | 32,945 | ||||||
TAG Immobilien AG | 1,194 | 37,915 | ||||||
Vonovia SE | 2,458 | 159,059 | ||||||
357,589 | ||||||||
Hong Kong | 2.2% | ||||||||
CK Infrastructure Holdings, Ltd. | 19,000 | 113,302 | ||||||
ESR Cayman, Ltd. (*) | 7,600 | 25,646 | ||||||
Henderson Land Development Co., Ltd. | 25,000 | 118,491 |
The accompanying notes are an integral part of these financial statements.
40 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Real Assets Portfolio (•) (continued) | ||||||||
Link REIT | 3,100 | $ | 29,993 | |||||
New World Development Co., Ltd. | 11,000 | 57,167 | ||||||
Power Assets Holdings, Ltd. | 35,000 | 214,800 | ||||||
Shimao Group Holdings, Ltd. | 7,000 | 17,166 | ||||||
Sun Hung Kai Properties, Ltd. | 8,500 | 126,663 | ||||||
Wharf Real Estate Investment Co., Ltd. | 5,000 | 29,076 | ||||||
732,304 | ||||||||
Ireland | 0.1% | ||||||||
Hibernia REIT PLC | 22,336 | 32,846 | ||||||
Israel | 0.1% | ||||||||
Adgar Investment and Development, Ltd. | 6,380 | 12,392 | ||||||
Property & Building Corp., Ltd. (*) | 133 | 16,197 | ||||||
28,589 | ||||||||
Italy | 6.8% | ||||||||
Atlantia SpA (*) | 26,667 | 483,263 | ||||||
Hera SpA | 60,048 | 248,182 | ||||||
Italgas SpA | 32,862 | 215,111 | ||||||
Snam SpA | 127,648 | 738,727 | ||||||
Terna SPA | 81,473 | 607,039 | ||||||
2,292,322 | ||||||||
Japan | 2.7% | ||||||||
Advance Residence Investment Corp. REIT | 9 | 29,970 | ||||||
Daito Trust Construction Co., Ltd. | 400 | 43,730 | ||||||
Daiwa House Industry Co., Ltd. | 2,500 | 75,022 | ||||||
Frontier Real Estate Investment Corp. REIT | 24 | 112,107 | ||||||
GLP J-REIT | 45 | 77,635 | ||||||
Hoshino Resorts REIT, Inc. REIT | 5 | 30,374 | ||||||
Japan Logistics Fund, Inc. REIT | 9 | 27,062 | ||||||
Japan Metropolitan Fund Invest REIT | 51 | 55,260 | ||||||
Japan Real Estate Investment Corp. | 9 | 55,322 | ||||||
Katitas Co., Ltd. | 700 | 19,668 | ||||||
Kenedix Office Investment Corp. REIT | 4 | 28,188 | ||||||
LaSalle Logiport REIT | 18 | 30,450 | ||||||
Mitsubishi Estate Co., Ltd. | 5,500 | 88,912 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 41
Description | Shares | Fair Value | ||||||
Lazard Real Assets Portfolio (•) (continued) | ||||||||
Mitsui Fudosan Co., Ltd. | 1,900 | $ | 43,988 | |||||
Nippon Building Fund, Inc. REIT | 5 | 31,185 | ||||||
NIPPON REIT Investment Corp. | 12 | 49,303 | ||||||
Open House Co., Ltd. | 700 | 32,904 | ||||||
Orix JREIT, Inc. | 24 | 46,178 | ||||||
SRE Holdings Corp. (*) | 300 | 19,804 | ||||||
897,062 | ||||||||
Luxembourg | 0.5% | ||||||||
SES SA | 21,299 | 162,796 | ||||||
Mexico | 0.2% | ||||||||
Corp Inmobiliaria Vesta SAB de CV | 23,400 | 45,523 | ||||||
Fibra Uno Administracion SA de CV REIT | 20,900 | 22,542 | ||||||
68,065 | ||||||||
Netherlands | 0.2% | ||||||||
Eurocommercial Properties NV | 2,294 | 57,089 | ||||||
Norway | 0.1% | ||||||||
Entra ASA | 1,467 | 33,545 | ||||||
Singapore | 0.8% | ||||||||
Keppel DC REIT | 21,600 | 40,037 | ||||||
Keppel Pacific Oak US REIT | 29,400 | 23,078 | ||||||
Mapletree Commercial Trust REIT | 13,400 | 21,552 | ||||||
Mapletree Industrial Trust REIT | 36,000 | 75,816 | ||||||
Mapletree Logistics Trust REIT | 17,500 | 26,717 | ||||||
Parkway Life REIT | 10,400 | 35,507 | ||||||
Sasseur REIT | 86,600 | 60,899 | ||||||
283,606 | ||||||||
South Korea | 0.1% | ||||||||
Korea Asset In Trust Co., Ltd. | 5,679 | 24,184 | ||||||
Spain | 2.2% | ||||||||
Ferrovial SA | 25,384 | 745,159 |
The accompanying notes are an integral part of these financial statements.
42 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Real Assets Portfolio (•) (continued) | ||||||||
Sweden | 1.0% | ||||||||
Atrium Ljungberg AB, B Shares | 1,500 | $ | 34,171 | |||||
Castellum AB | 2,305 | 58,673 | ||||||
Catena AB | 437 | 23,399 | ||||||
Cibus Nordic Real Estate AB | 1,431 | 34,184 | ||||||
Dios Fastigheter AB | 2,474 | 25,620 | ||||||
Fabege AB | 1,485 | 23,827 | ||||||
Fastighets AB Balder, B Shares (*) | 438 | 27,486 | ||||||
Kungsleden AB | 2,137 | 25,871 | ||||||
Nyfosa AB | 1,704 | 23,021 | ||||||
Sagax AB, Class D | 6,919 | 26,882 | ||||||
Wallenstam AB Class B | 1,541 | 24,356 | ||||||
327,490 | ||||||||
United Arab Emirates | 0.2% | ||||||||
Aldar Properties PJSC | 80,414 | 83,700 | ||||||
United Kingdom | 6.4% | ||||||||
Anglo American PLC | 2,172 | 86,552 | ||||||
Big Yellow Group PLC REIT | 1,467 | 26,532 | ||||||
Civitas Social Housing PLC REIT | 35,663 | 56,947 | ||||||
National Grid PLC | 60,041 | 764,463 | ||||||
Pennon Group PLC | 20,476 | 321,831 | ||||||
Segro PLC REIT | 11,070 | 167,716 | ||||||
Severn Trent PLC | 10,784 | 373,015 | ||||||
United Utilities Group PLC | 25,806 | 348,016 | ||||||
2,145,072 | ||||||||
United States | 21.9% | ||||||||
Agree Realty Corp. REIT | 412 | 29,042 | ||||||
Alexandria Real Estate Equities, Inc. REIT | 387 | 70,411 | ||||||
Ameren Corp. | 2,400 | 192,096 | ||||||
American Tower Corp. REIT | 1,506 | 406,831 | ||||||
Americold Realty Trust REIT | 262 | 9,917 | ||||||
Apartment Investment and Management Co. REIT, Class A (*) | 4,300 | 28,853 | ||||||
AvalonBay Communities, Inc. REIT | 545 | 113,736 | ||||||
Boston Properties, Inc. REIT | 606 | 69,442 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 43
Description | Shares | Fair Value | ||||||
Lazard Real Assets Portfolio (•) (continued) | ||||||||
Brandywine Realty Trust REIT | 2,777 | $ | 38,073 | |||||
Brixmor Property Group, Inc. REIT | 2,785 | 63,749 | ||||||
Bunge, Ltd. | 1,223 | 95,577 | ||||||
Camden Property Trust REIT | 713 | 94,594 | ||||||
CareTrust REIT, Inc. | 1,184 | 27,504 | ||||||
CBRE Group, Inc., Class A (*) | 1,756 | 150,542 | ||||||
CF Industries Holdings, Inc. | 2,700 | 138,915 | ||||||
Community Healthcare Trust, Inc. REIT | 413 | 19,601 | ||||||
Consolidated Edison, Inc. | 5,840 | 418,845 | ||||||
Crown Castle International Corp., REIT | 1,847 | 360,350 | ||||||
CSX Corp. | 16,386 | 525,663 | ||||||
CubeSmart REIT | 900 | 41,688 | ||||||
Digital Realty Trust, Inc. REIT | 1,155 | 173,781 | ||||||
Duke Realty Corp. REIT | 1,400 | 66,290 | ||||||
Easterly Government Properties, Inc. REIT | 2,346 | 49,454 | ||||||
EastGroup Properties, Inc. REIT | 328 | 53,940 | ||||||
Equinix, Inc. REIT | 294 | 235,964 | ||||||
Equity Lifestyle Properties, Inc. REIT | 1,076 | 79,958 | ||||||
Equity Residential REIT | 1,217 | 93,709 | ||||||
Essential Properties Realty Trust, Inc. REIT | 800 | 21,632 | ||||||
Essex Property Trust, Inc. REIT | 166 | 49,802 | ||||||
Extra Space Storage, Inc. REIT | 649 | 106,319 | ||||||
Federal Realty Investment Trust REIT | 400 | 46,868 | ||||||
Gaming and Leisure Properties, Inc. REIT | 1,148 | 53,187 | ||||||
Getty Realty Corp. REIT | 1,006 | 31,337 | ||||||
Healthcare Trust of America, Inc., Class A REIT | 1,342 | 35,831 | ||||||
Healthpeak Properties, Inc. REIT | 1,984 | 66,047 | ||||||
Highwoods Properties, Inc. REIT | 984 | 44,447 | ||||||
Hilton Worldwide Holdings, Inc. (*) | 2,154 | 259,815 | ||||||
Host Hotels & Resorts, Inc. REIT (*) | 1,702 | 29,087 | ||||||
Hudson Pacific Properties, Inc. REIT | 800 | 22,256 | ||||||
Innovative Industrial Properties, Inc. REIT | 168 | 32,091 | ||||||
Invitation Homes, Inc., REIT | 1,468 | 54,742 | ||||||
Iron Mountain, Inc. REIT | 1,426 | 60,348 |
The accompanying notes are an integral part of these financial statements.
44 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Real Assets Portfolio (•) (continued) | ||||||||
Jones Lang LaSalle, Inc. (*) | 300 | $ | 58,638 | |||||
Lamar Advertising Co., Class A REIT | 506 | 52,837 | ||||||
Life Storage, Inc. REIT | 462 | 49,596 | ||||||
Medical Properties Trust, Inc. REIT | 3,775 | 75,877 | ||||||
MGM Growth Properties LLC, REIT Class A | 1,300 | 47,606 | ||||||
Mid-America Apartment Communities, Inc. REIT | 807 | 135,915 | ||||||
National Retail Properties, Inc. REIT | 1,130 | 52,974 | ||||||
Norfolk Southern Corp. | 255 | 67,680 | ||||||
Omega Healthcare Investors, Inc. REIT | 1,055 | 38,286 | ||||||
Park Hotels & Resorts, Inc. REIT (*) | 900 | 18,549 | ||||||
Pennsylvania Real Estate Investment Trust (*) | 4,296 | 10,697 | ||||||
Pinnacle West Capital Corp. | 2,100 | 172,137 | ||||||
PotlatchDeltic Corp. REIT | 861 | 45,762 | ||||||
Prologis, Inc., REIT | 2,944 | 351,896 | ||||||
PS Business Parks, Inc. REIT | 199 | 29,468 | ||||||
Public Storage REIT | 720 | 216,497 | ||||||
Rayonier, Inc., REIT | 1,223 | 43,942 | ||||||
Realty Income Corp. REIT | 1,534 | 102,379 | ||||||
Redfin Corp. (*) | 422 | 26,759 | ||||||
Regency Centers Corp. REIT | 568 | 36,392 | ||||||
Sabra Health Care REIT, Inc. | 1,868 | 33,998 | ||||||
SBA Communications Corp. REIT | 308 | 98,160 | ||||||
Simon Property Group, Inc. REIT | 1,332 | 173,799 | ||||||
SL Green Realty Corp. REIT | 700 | 56,000 | ||||||
Spirit Realty Capital, Inc. REIT | 700 | 33,488 | ||||||
STAG Industrial, Inc., REIT | 656 | 24,554 | ||||||
STORE Capital Corp. REIT | 1,057 | 36,477 | ||||||
Sun Communities, Inc. REIT | 354 | 60,676 | ||||||
The St. Joe Co. | 856 | 38,186 | ||||||
Tyson Foods, Inc., Class A | 517 | 38,134 | ||||||
UDR, Inc. REIT | 900 | 44,082 | ||||||
Ventas, Inc. REIT | 1,331 | 76,000 | ||||||
VEREIT, Inc. REIT | 1,473 | 67,655 | ||||||
VICI Properties, Inc. REIT | 1,933 | 59,962 | ||||||
Vulcan Materials Co. | 407 | 70,846 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 45
Description | Shares | Fair Value | ||||||
Lazard Real Assets Portfolio (•) (continued) | ||||||||
Welltower, Inc. REIT | 1,162 | $ | 96,562 | |||||
Weyerhaeuser Co. REIT | 2,432 | 83,709 | ||||||
WP Carey, Inc. REIT | 1,112 | 82,977 | ||||||
7,371,486 | ||||||||
Total Common Stocks (Cost $16,597,189) | 19,228,448 | |||||||
Exchange-Traded Funds | 4.3% | ||||||||
Aberdeen Standard Physical Silver Shares ETF (Δ) | 5,500 | 138,545 | ||||||
SPDR Gold Shares (Δ) | 7,803 | 1,292,411 | ||||||
Total Exchange-Traded Funds (Cost $1,453,191) | 1,430,956 | |||||||
Short-Term Investments | 33.0% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Δ) (Cost $11,100,337) | 11,100,337 | 11,100,337 | ||||||
Total Investments | 94.5% (Cost $29,150,717) (») | $ | 31,759,741 | ||||||
Cash and Other Assets in Excess of Liabilities | 5.5% | 1,838,144 | |||||||
Net Assets | 100.0% | $ | 33,597,885 |
The accompanying notes are an integral part of these financial statements.
46 Semi-Annual Report
Lazard Real Assets Portfolio (•) (continued)
Forward Currency Contracts open at June 30, 2021:
Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | ||||||||
USD | 228,838 | AUD | 302,644 | CIT | 09/22/21 | $ | 1,914 | |||||||
USD | 80,782 | AUD | 107,417 | HSB | 09/22/21 | 240 | ||||||||
USD | 218,749 | AUD | 289,408 | HSB | 09/22/21 | 1,750 | ||||||||
USD | 255,243 | AUD | 337,660 | JPM | 09/22/21 | 2,064 | ||||||||
USD | 210,632 | AUD | 278,596 | SSB | 09/22/21 | 1,740 | ||||||||
USD | 34,976 | CAD | 43,193 | CIT | 09/22/21 | 156 | ||||||||
USD | 20,372 | CAD | 25,157 | JPM | 09/22/21 | 92 | ||||||||
USD | 918,965 | EUR | 756,630 | CIT | 09/22/21 | 20,788 | ||||||||
USD | 1,521,889 | EUR | 1,253,088 | HSB | 09/22/21 | 34,379 | ||||||||
USD | 551,709 | EUR | 454,239 | JPM | 09/22/21 | 12,493 | ||||||||
USD | 1,042,472 | EUR | 858,390 | SSB | 09/22/21 | 23,498 | ||||||||
USD | 898,568 | GBP | 645,208 | HSB | 09/22/21 | 7,631 | ||||||||
USD | 525,725 | GBP | 377,415 | JPM | 09/22/21 | 4,570 | ||||||||
USD | 345,111 | GBP | 247,777 | SSB | 09/22/21 | 2,968 | ||||||||
USD | 171,676 | HKD | 1,332,785 | CIT | 09/24/21 | 27 | ||||||||
USD | 156,019 | HKD | 1,211,292 | SSB | 09/24/21 | 17 | ||||||||
Total gross unrealized appreciation on Forward Currency Contracts | $ | 114,327 |
Futures Contracts open at June 30, 2021 (Δ):
Type | Number of Contracts | Notional Amount | Expiration Date | Notional Cost | Fair Value | Unrealized Appreciation | Unrealized Depreciation | |||||||||||
Natural Gas | 25 | $ 250,000 | 08/27/2021 | $775,806 | $906,000 | $ | 130,194 | $ | — | |||||||||
Low Sulphur Gasoil | 6 | 600 | 09/10/2021 | 350,250 | 359,850 | 9,600 | — | |||||||||||
Sugar 11 | 2 | 224,000 | 09/30/2021 | 39,423 | 40,073 | 650 | — | |||||||||||
Cotton No. 2 | 1 | 50,000 | 12/08/2021 | 42,465 | 42,450 | — | 15 | |||||||||||
Soybean Oil | 1 | 60,000 | 12/14/2021 | 37,620 | 37,656 | 36 | — | |||||||||||
Total gross unrealized appreciation/depreciation on Futures Contracts | $ | 140,480 | $ | 15 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 47
Lazard Real Assets Portfolio (•) (continued)
Total Return Swap Agreements open at June 30, 2021 (Δ):
Currency | Counterparty | Notional Amount | Expiration Date | Receive | Pay | Payable | Payment Frequency | Unrealized Appreciation | ||||||||||
USD | GSC | $8,356,818 | 10/22/21 | Appreciation, and dividends paid, on commodities in a custom momentum basket | 0.00% | Depreciation, and dividend expense (if applicable), on commodities in a custom momentum basket | Upon Maturity(a) | $2,527,142 |
(a) For swap agreements, the net settlement will occur on the expiration date.
The accompanying notes are an integral part of these financial statements.
48 Semi-Annual Report
Lazard Real Assets Portfolio (•) (concluded)
The following table represents the commodity exposure expressed as a percentage of the notional amount of the individual commodity underlying the custom total return basket swap agreements with GSC, as of June 30, 2021:
Commodity | Commodity Index Ticker Symbol | Commodity Exposure Expressed as a Percentage of Notional Amount | ||||
Aluminum | BCOMAL | 4.60 | % | |||
Bean Oil | BCOMBO | 5.25 | ||||
Brent Crude | BCOMCO | 11.82 | ||||
Coffee | BCOMKC | 2.26 | ||||
Copper | BCOMHG | 8.01 | ||||
Corn | BCOMCN | 8.48 | ||||
Cotton | BCOMCT | 0.61 | ||||
Crude Oil | BCOMCL | 14.29 | ||||
Gasoline (RBOB) | BCOMRB | 4.64 | ||||
Gold | BCOMGC | 0.05 | ||||
Heating Oil | BCOMHO | 2.01 | ||||
Kansas Wheat | BCOMKW | 2.62 | ||||
Lean Hogs | BCOMLH | 0.78 | ||||
Live Cattle | BCOMLC | 5.63 | ||||
Natural Gas | BCOMNG | 4.70 | ||||
Nickel | BCOMNI | 1.04 | ||||
Silver | BCOMSI | 2.83 | ||||
Soy Meal | BCOMSM | 3.42 | ||||
Soybeans | BCOMSY | 7.49 | ||||
Sugar | BCOMSB | 2.68 | ||||
Wheat | BCOMWH | 4.07 | ||||
Zinc | BCOMZS | 2.72 | ||||
Total | 100.0 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 49
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Convertible Corporate Bonds | 128.4% | ||||||||||
Australia | 0.7% | ||||||||||
Afterpay, Ltd., 0.000%, 03/12/26 (±) | AUD | 200 | $ | 137,841 | ||||||
Austria | 1.1% | ||||||||||
ams AG, 2.125%, 11/03/27 (±) | EUR | 200 | 232,291 | |||||||
Brazil | 1.0% | ||||||||||
GOL Equity Finance SA, 3.750%, 07/15/24 (#), (±) | USD | 237 | 212,263 | |||||||
Canada | 6.4% | ||||||||||
Aurora Cannabis, Inc., 5.500%, 02/28/24 (±) | USD | 350 | 295,750 | |||||||
Canopy Growth Corp., 4.250%, 07/15/23 (#), (±) | CAD | 283 | 237,146 | |||||||
Dye & Durham, Ltd., 3.750%, 03/01/26 | CAD | 125 | 102,304 | |||||||
Ivanhoe Mines, Ltd., 2.500%, 04/15/26 (±) | USD | 120 | 147,456 | |||||||
Pretium Resources, Inc., 2.250%, 03/15/22 (±) | USD | 262 | 265,603 |
The accompanying notes are an integral part of these financial statements.
50 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
Tricon Residential, Inc., 5.750%, 03/31/22 (±) | USD | 276 | $ | 307,712 | ||||||
1,355,971 | ||||||||||
China | 3.5% | ||||||||||
Li Auto, Inc., 0.250%, 05/01/28 (#), (±) | USD | 213 | 296,720 | |||||||
NIO, Inc.: | ||||||||||
0.000%, 02/01/26 (±) | USD | 285 | 267,615 | |||||||
0.500%, 02/01/27 (#), (±) | USD | 195 | 183,105 | |||||||
747,440 | ||||||||||
Germany | 1.7% | ||||||||||
Delivery Hero SE, 1.500%, 01/15/28 (±) | EUR | 200 | 246,944 | |||||||
Just Eat Takeaway.com NV, 1.250%, 04/30/26 (±) | EUR | 100 | 120,477 | |||||||
367,421 | ||||||||||
Israel | 0.9% | ||||||||||
Fiverr International, Ltd., 0.000%, 11/01/25 (±) | USD | 150 | 200,025 | |||||||
Italy | 0.2% | ||||||||||
Kaleyra, Inc., 6.125%, 06/01/26 (±) | USD | 38 | 38,610 | |||||||
Netherlands | 0.5% | ||||||||||
Pharming Group NV, 3.000%, 01/21/25 (±) | EUR | 100 | 101,056 | |||||||
Singapore | 1.2% | ||||||||||
SGX Treasury I Pte, Ltd., 0.000%, 03/01/24 (±) | EUR | 200 | 244,268 | |||||||
United States | 111.2% | ||||||||||
Accolade, Inc., 0.500%, 04/01/26 (±) | USD | 60 | 76,350 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 51
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
Aerie Pharmaceuticals, Inc., 1.500%, 10/01/24 (±) | USD | 214 | $ | 210,797 | ||||||
Air Transport Services Group, Inc., 1.125%, 10/15/24 (±) | USD | 210 | 212,898 | |||||||
Alteryx, Inc.: | ||||||||||
0.500%, 08/01/24 (±) | USD | 150 | 142,875 | |||||||
1.000%, 08/01/26 (±) | USD | 135 | 127,076 | |||||||
Arbor Realty Trust, Inc., 4.750%, 11/01/22 (±) | USD | 428 | 464,294 | |||||||
Atlas Air Worldwide Holdings, Inc.: | ||||||||||
2.250%, 06/01/22 (±) | USD | 285 | 308,883 | |||||||
1.875%, 06/01/24 (±) | USD | 180 | 229,613 | |||||||
Avadel Finance Cayman, Ltd., 4.500%, 02/01/23 (±) | USD | 218 | 221,314 | |||||||
Avaya Holdings Corp., 2.250%, 06/15/23 (±) | USD | 260 | 303,550 | |||||||
Avid SPV LLC, 1.250%, 03/15/26 (±) | USD | 120 | 164,604 | |||||||
Bentley Systems, Inc., 0.125%, 01/15/26 (±) | USD | 300 | 357,390 | |||||||
Beyond Meat, Inc., 0.000%, 03/15/27 (±) | USD | 196 | 199,798 | |||||||
BioMarin Pharmaceutical, Inc., 1.250%, 05/15/27 (±) | USD | 210 | 210,405 | |||||||
Braemar Hotels & Resorts, Inc., 4.500%, 06/01/26 (#), (±) | USD | 75 | 89,689 | |||||||
Bridgebio Pharma, Inc., 2.250%, 02/01/29 (±) | USD | 90 | 86,911 | |||||||
Century Aluminum Co., 2.750%, 05/01/28 (±) | USD | 75 | 72,584 | |||||||
Cinemark Holdings, Inc., 4.500%, 08/15/25 (±) | USD | 90 | 159,188 | |||||||
Coherus Biosciences, Inc., 1.500%, 04/15/26 (±) | USD | 178 | 181,931 | |||||||
Collegium Pharmaceutical, Inc., 2.625%, 02/15/26 (±) | USD | 167 | 178,918 |
The accompanying notes are an integral part of these financial statements.
52 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
CSG Systems International, Inc., 4.250%, 03/15/36 (±) | USD | 365 | $ | 376,169 | ||||||
Cutera, Inc., 2.250%, 03/15/26 (±) | USD | 122 | 198,250 | |||||||
DISH Network Corp., 3.375%, 08/15/26 (±) | USD | 210 | 214,305 | |||||||
DraftKings, Inc., 0.000%, 03/15/28 (±) | USD | 184 | 165,784 | |||||||
Dynavax Technologies Corp., 2.500%, 05/15/26 (±) | USD | 197 | 226,796 | |||||||
Encore Capital Group, Inc.: | ||||||||||
3.250%, 03/15/22 (±) | USD | 394 | 444,235 | |||||||
3.250%, 10/01/25 (±) | USD | 203 | 274,393 | |||||||
EZCORP, Inc., 2.875%, 07/01/24 (±) | USD | 150 | 142,688 | |||||||
Fastly, Inc., 0.000%, 03/15/26 (±) | USD | 195 | 181,643 | |||||||
Flexion Therapeutics, Inc., 3.375%, 05/01/24 (±) | USD | 188 | 168,778 | |||||||
Fortive Corp., 0.875%, 02/15/22 (±) | USD | 240 | 240,600 | |||||||
fuboTV, Inc., 3.250%, 02/15/26 (±) | USD | 219 | 215,031 | |||||||
Gossamer Bio, Inc., 5.000%, 06/01/27 (±) | USD | 135 | 108,422 | |||||||
Groupon, Inc., 1.125%, 03/15/26 (±) | USD | 195 | 182,203 | |||||||
Guess?, Inc., 2.000%, 04/15/24 (±) | USD | 180 | 223,425 | |||||||
Helix Energy Solutions Group, Inc., 6.750%, 02/15/26 (±) | USD | 266 | 324,148 | |||||||
Herbalife Nutrition, Ltd., 2.625%, 03/15/24 (±) | USD | 300 | 326,437 | |||||||
Hope Bancorp, Inc., 2.000%, 05/15/38 (±) | USD | 408 | 399,125 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 53
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
i3 Verticals LLC, 1.000%, 02/15/25 (±) | USD | 168 | $ | 169,890 | ||||||
IIP Operating Partnership LP, 3.750%, 02/21/24 (±) | USD | 117 | 342,962 | |||||||
Impinj, Inc., 2.000%, 12/15/26 (±) | USD | 114 | 188,769 | |||||||
Innoviva, Inc., 2.125%, 01/15/23 (±) | USD | 370 | 376,012 | |||||||
Insmed, Inc., 0.750%, 06/01/28 (±) | USD | 198 | 217,676 | |||||||
Invacare Corp., 4.250%, 03/15/26 (±) | USD | 41 | 40,709 | |||||||
Ironwood Pharmaceuticals, Inc., 1.500%, 06/15/26 (±) | USD | 167 | 198,637 | |||||||
JPMorgan Chase Bank NA, 0.000%, 12/28/23 (±) | USD | 200 | 202,500 | |||||||
Kadmon Holdings, Inc., 3.625%, 02/15/27 (±) | USD | 77 | 66,992 | |||||||
Kaman Corp., 3.250%, 05/01/24 (±) | �� | USD | 216 | 227,888 | ||||||
Karyopharm Therapeutics, Inc., 3.000%, 10/15/25 (±) | USD | 122 | 121,756 | |||||||
LendingTree, Inc., 0.500%, 07/15/25 (±) | USD | 270 | 244,026 | |||||||
Liberty Broadband Corp.: | ||||||||||
1.250%, 09/30/50 (±) | USD | 360 | 362,340 | |||||||
2.750%, 09/30/50 (±) | USD | 323 | 339,124 | |||||||
Liberty Interactive LLC: | ||||||||||
4.000%, 11/15/29 (±) | USD | 246 | 188,310 | |||||||
3.750%, 02/15/30 (±) | USD | 230 | 173,701 | |||||||
Liberty Media Corp-Liberty Formula One, 1.000%, 01/30/23 (±) | USD | 186 | 252,867 | |||||||
Liberty Media Corp.: | ||||||||||
1.375%, 10/15/23 (±) | USD | 150 | 199,311 | |||||||
2.125%, 03/31/48 (±) | USD | 315 | 326,812 | |||||||
2.750%, 12/01/49 (±) | USD | 345 | 361,560 | |||||||
0.500%, 12/01/50 (±) | USD | 121 | 139,211 |
The accompanying notes are an integral part of these financial statements.
54 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
Ligand Pharmaceuticals, Inc., 0.750%, 05/15/23 (±) | USD | 242 | $ | 239,172 | ||||||
Live Nation Entertainment, Inc., 2.000%, 02/15/25 (±) | USD | 120 | 133,920 | |||||||
LivePerson, Inc., 0.750%, 03/01/24 (±) | USD | 93 | 162,199 | |||||||
Magnite, Inc., 0.250%, 03/15/26 (±) | USD | 270 | 240,813 | |||||||
MannKind Corp., 2.500%, 03/01/26 (±) | USD | 197 | 251,454 | |||||||
Marriott Vacations Worldwide Corp., 0.000%, 01/15/26 (±) | USD | 120 | 133,656 | |||||||
Mesa Laboratories, Inc., 1.375%, 08/15/25 (±) | USD | 83 | 95,243 | |||||||
MicroStrategy, Inc., 0.000%, 02/15/27 (±) | USD | 165 | 123,090 | |||||||
Mitek Systems, Inc., 0.750%, 02/01/26 (±) | USD | 150 | 171,285 | |||||||
MP Materials Corp., 0.250%, 04/01/26 (±) | USD | 213 | 228,704 | |||||||
Nutanix, Inc., 0.000%, 01/15/23 (±) | USD | 195 | 205,969 | |||||||
NuVasive, Inc., 1.000%, 06/01/23 (±) | USD | 329 | 342,982 | |||||||
Oil States International, Inc., 4.750%, 04/01/26 (±) | USD | 34 | 36,545 | |||||||
Omeros Corp., 5.250%, 02/15/26 (±) | USD | 214 | 235,935 | |||||||
OSI Systems, Inc., 1.250%, 09/01/22 (±) | USD | 234 | 248,344 | |||||||
Parsons Corp., 0.250%, 08/15/25 (±) | USD | 150 | 158,775 | |||||||
Patrick Industries, Inc., 1.000%, 02/01/23 (±) | USD | 278 | 299,892 | |||||||
Pebblebrook Hotel Trust, 1.750%, 12/15/26 (±) | USD | 180 | 204,120 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 55
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
PennyMac Corp.: | ||||||||||
5.500%, 11/01/24 (±) | USD | 300 | $ | 306,000 | ||||||
5.500%, 03/15/26 (±) | USD | 195 | 202,434 | |||||||
PetIQ, Inc., 4.000%, 06/01/26 (±) | USD | 183 | 274,042 | |||||||
PRA Group, Inc., 3.500%, 06/01/23 (±) | USD | 270 | 289,912 | |||||||
PROS Holdings, Inc.: | ||||||||||
1.000%, 05/15/24 (±) | USD | 177 | 181,757 | |||||||
2.250%, 09/15/27 (±) | USD | 89 | 115,867 | |||||||
Pure Storage, Inc., 0.125%, 04/15/23 (±) | USD | 180 | 188,325 | |||||||
Rapid7, Inc., 0.250%, 03/15/27 (±) | USD | 166 | 184,160 | |||||||
Realogy Group LLC, 0.250%, 06/15/26 (±) | USD | 102 | 102,736 | |||||||
Redwood Trust, Inc., 4.750%, 08/15/23 (±) | USD | 384 | 384,000 | |||||||
Revance Therapeutics, Inc., 1.750%, 02/15/27 (±) | USD | 200 | 233,331 | |||||||
Royal Caribbean Cruises, Ltd., 2.875%, 11/15/23 (±) | USD | 240 | 300,897 | |||||||
Shift Technologies, Inc., 4.750%, 05/15/26 (±) | USD | 150 | 182,820 | |||||||
SmileDirectClub, Inc., 0.000%, 02/01/26 (±) | USD | 337 | 275,919 | |||||||
Splunk, Inc., 1.125%, 06/15/27 (±) | USD | 210 | 204,619 | |||||||
Spotify USA, Inc., 0.000%, 03/15/26 (±) | USD | 36 | 33,696 | |||||||
Stride, Inc., 1.125%, 09/01/27 (±) | USD | 199 | 184,314 | |||||||
Summit Hotel Properties, Inc., 1.500%, 02/15/26 (±) | USD | 204 | 210,222 | |||||||
Sunnova Energy International, Inc., 0.250%, 12/01/26 (±) | USD | 195 | 242,482 |
The accompanying notes are an integral part of these financial statements.
56 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
SunPower Corp., 4.000%, 01/15/23 (±) | USD | 187 | $ | 263,913 | ||||||
Tabula Rasa HealthCare, Inc., 1.750%, 02/15/26 (±) | USD | 98 | 100,332 | |||||||
TechTarget, Inc., 0.125%, 12/15/25 (±) | USD | 165 | 208,065 | |||||||
The Chefs’ Warehouse, Inc.: | ||||||||||
1.875%, 12/01/24 (±) | USD | 233 | 241,738 | |||||||
1.875%, 12/01/24 (#), (±) | USD | 145 | 150,438 | |||||||
The Greenbrier Cos., Inc., 2.875%, 04/15/28 (±) | USD | 198 | 206,613 | |||||||
The Marcus Corp., 5.000%, 09/15/25 (±) | USD | 120 | 251,850 | |||||||
Turning Point Brands, Inc., 2.500%, 07/15/24 (±) | USD | 283 | 318,375 | |||||||
Two Harbors Investment Corp., 6.250%, 01/15/26 (±) | USD | 106 | 114,016 | |||||||
Varex Imaging Corp., 4.000%, 06/01/25 (±) | USD | 219 | 323,572 | |||||||
Vishay Intertechnology, Inc., 2.250%, 06/15/25 (±) | USD | 195 | 204,997 | |||||||
Vroom, Inc., 0.750%, 07/01/26 (±) | USD | 73 | 75,409 | |||||||
Wayfair, Inc., 0.625%, 10/01/25 (±) | USD | 195 | 207,675 | |||||||
Zogenix, Inc., 2.750%, 10/01/27 (±) | USD | 169 | 171,958 | |||||||
23,601,135 | ||||||||||
Total Convertible Corporate Bonds (Cost $25,864,624) | 27,238,321 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 57
Number of | Exercise | Notional | Fair | |||||||||||||||
Description | Counterparty | Contracts | Price | Amount | Value | |||||||||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||||||||||
Purchased Options | 0.0% | ||||||||||||||||||
Call | ||||||||||||||||||
Avaya Holdings Corp. Expires 07/16/21 | MSC | 7 | $ | 34 | $ | 700 | $ | 0 | ||||||||||
Put | ||||||||||||||||||
American Airlines Group, Inc. Expires 01/20/23 | MSC | 7 | 10 | 700 | 476 | |||||||||||||
Alteryx Inc. Expires 07/16/21 | MSC | 2 | 80 | 200 | 136 | |||||||||||||
Biomarin Pharmaceutical Inc. Expires 07/16/21 | MSC | 6 | 80 | 600 | 414 | |||||||||||||
Cinemark Holdings Inc. Expires 01/21/22 | MSC | 12 | 10 | 1,200 | 180 | |||||||||||||
Gol Linhas Aereas Inteligentes SA Expires 10/15/21 | MSC | 11 | 4 | 1,100 | 55 | |||||||||||||
Marcus Corp. Expires 12/17/21 | MSC | 6 | 10 | 600 | 0 | |||||||||||||
Realogy Holdings Corp. Expires 07/16/21 | MSC | 7 | 15 | 700 | 35 | |||||||||||||
Total Purchased Options (Cost $4,430) | 1,296 |
Description | Shares | Fair Value | ||||||
Short-Term Investments | 58.3% | ||||||||
State Street Institutional Treasury Money Market Fund, Premier Class, 0.01% (7 day yield) (Cost $12,363,628) | 12,363,628 | $ | 12,363,628 | |||||
Total Investments excluding Securities Sold Short | 186.7% (Cost $38,236,030) | $ | 39,607,020 |
The accompanying notes are an integral part of these financial statements.
58 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
Securities Sold Short | (90.7)% | ||||||||
Common Stocks | (54.5)% | ||||||||
Austria | (0.3)% | ||||||||
ams AG | (2,886 | ) | (57,908 | ) | ||||
Brazil | (0.2)% | ||||||||
Gol Linhas Aereas Inteligentes SA ADR | (3,656 | ) | (33,708 | ) | ||||
Canada | (1.9)% | ||||||||
Canopy Growth Corp. | (2,239 | ) | (54,151 | ) | ||||
Dye & Durham, Ltd. | (823 | ) | (31,623 | ) | ||||
Ivanhoe Mines, Ltd., Class A | (12,256 | ) | (88,489 | ) | ||||
Pretium Resources, Inc. | (367 | ) | (3,509 | ) | ||||
Tricon Capital Group, Inc. | (19,790 | ) | (227,658 | ) | ||||
(405,430 | ) | |||||||
China | (0.8)% | ||||||||
NIO, Inc. ADR | (3,235 | ) | (172,102 | ) | ||||
Germany | (0.5)% | ||||||||
Delivery Hero SE | (684 | ) | (90,373 | ) | ||||
Just Eat Takeaway.com NV | (254 | ) | (23,460 | ) | ||||
(113,833 | ) | |||||||
Israel | (0.7)% | ||||||||
Fiverr International, Ltd. | (566 | ) | (137,249 | ) | ||||
Italy | 0.0% | ||||||||
Kaleyra, Inc. | (804 | ) | (9,841 | ) | ||||
Netherlands | (0.1)% | ||||||||
Pharming Group NV | (13,074 | ) | (14,871 | ) | ||||
United States | (50.0)% | ||||||||
Accolade, Inc. | (991 | ) | (53,821 | ) | ||||
Aerie Pharmaceuticals, Inc. | (5,069 | ) | (81,155 | ) | ||||
Afterpay, Ltd. | (478 | ) | (42,301 | ) | ||||
Air Transport Services Group, Inc. | (3,086 | ) | (71,688 | ) |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 59
Description | Shares | Fair Value | ||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
Alteryx, Inc., Class A | (180 | ) | $ | (15,484 | ) | |||
Arbor Realty Trust, Inc. REIT | (12,098 | ) | (215,586 | ) | ||||
Atlas Air Worldwide Holdings, Inc. | (4,007 | ) | (272,917 | ) | ||||
Avadel Pharmaceuticals PLC ADR | (9,729 | ) | (65,476 | ) | ||||
Avaya Holdings Corp. | (6,479 | ) | (174,285 | ) | ||||
Avid Bioservices, Inc. | (4,606 | ) | (118,144 | ) | ||||
Bentley Systems, Inc., Class B | (3,396 | ) | (219,993 | ) | ||||
Beyond Meat, Inc. | (676 | ) | (106,463 | ) | ||||
Braemar Hotels & Resorts, Inc. REIT | (8,282 | ) | (51,431 | ) | ||||
Bridgebio Pharma, Inc. | (644 | ) | (39,258 | ) | ||||
Century Aluminum Co. | (3,340 | ) | (43,053 | ) | ||||
Charter Communications, Inc., Class A | (178 | ) | (128,418 | ) | ||||
Cinemark Holdings, Inc. | (5,548 | ) | (121,779 | ) | ||||
Coherus Biosciences, Inc. | (6,197 | ) | (85,704 | ) | ||||
Collegium Pharmaceutical, Inc. | (4,033 | ) | (95,340 | ) | ||||
CSG Systems International, Inc. | (806 | ) | (38,027 | ) | ||||
Cutera, Inc. | (3,254 | ) | (159,544 | ) | ||||
DISH Network Corp., Class A | (1,832 | ) | (76,578 | ) | ||||
DraftKings, Inc., Class A | (1,384 | ) | (72,203 | ) | ||||
Dynavax Technologies Corp. | (14,324 | ) | (141,091 | ) | ||||
Encore Capital Group, Inc. | (9,684 | ) | (458,925 | ) | ||||
EZCORP, Inc. Class A | (7,587 | ) | (45,750 | ) | ||||
Fastly, Inc., Class A | (1,104 | ) | (65,798 | ) | ||||
Flexion Therapeutics, Inc. | (2,264 | ) | (18,633 | ) | ||||
fuboTV, Inc. | (2,459 | ) | (78,958 | ) | ||||
Gossamer Bio, Inc. | (6,841 | ) | (55,549 | ) | ||||
Groupon, Inc. | (2,033 | ) | (87,744 | ) | ||||
Guess?, Inc. | (4,863 | ) | (128,383 | ) | ||||
Helix Energy Solutions Group, Inc. | (31,789 | ) | (181,515 | ) | ||||
Herbalife Nutrition, Ltd. | (2,401 | ) | (126,605 | ) | ||||
Hope Bancorp, Inc. | (2,752 | ) | (39,023 | ) | ||||
I3 Verticals, Inc., Class A | (2,662 | ) | (80,446 | ) | ||||
Impinj, Inc. | (2,953 | ) | (152,345 | ) | ||||
Innovative Industrial Properties, Inc. REIT | (1,704 | ) | (325,498 | ) | ||||
Innoviva, Inc. | (5,272 | ) | (70,697 | ) | ||||
Insmed, Inc. | (4,527 | ) | (128,838 | ) | ||||
Invacare Corp. | (3,120 | ) | (25,178 | ) |
The accompanying notes are an integral part of these financial statements.
60 Semi-Annual Report
Description | Shares | Fair Value | ||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
Ironwood Pharmaceuticals, Inc. | (9,195 | ) | $ | (118,340 | ) | |||
Kadmon Holdings, Inc. | (8,865 | ) | (34,308 | ) | ||||
Kaman Corp. | (1,120 | ) | (56,448 | ) | ||||
Karyopharm Therapeutics, Inc. | (4,738 | ) | (48,896 | ) | ||||
LendingTree, Inc. | (292 | ) | (61,869 | ) | ||||
Li Auto, Inc. ADR | (6,464 | ) | (225,852 | ) | ||||
Liberty Media Corp-Liberty Formula One, Class C | (4,141 | ) | (199,638 | ) | ||||
Liberty Media Corp-Liberty MediaLiberty Media Corp-Liberty Media,Class A | (474 | ) | (20,207 | ) | ||||
Liberty Media Corp.-Liberty SiriusXM, Class A | (2,407 | ) | (112,118 | ) | ||||
Ligand Pharmaceuticals, Inc. | (258 | ) | (33,847 | ) | ||||
Live Nation Entertainment, Inc. | (1,567 | ) | (137,254 | ) | ||||
LivePerson, Inc. | (2,114 | ) | (133,689 | ) | ||||
Magnite, Inc. | (2,024 | ) | (68,492 | ) | ||||
MannKind Corp. | (30,702 | ) | (167,326 | ) | ||||
Marriott Vacations Worldwide Corp. | (489 | ) | (77,898 | ) | ||||
Mesa Laboratories, Inc. | (216 | ) | (58,573 | ) | ||||
MicroStrategy, Inc., Class A | (100 | ) | (66,450 | ) | ||||
Mitek Systems, Inc. | (5,673 | ) | (109,262 | ) | ||||
MP Materials Corp. | (3,656 | ) | (134,760 | ) | ||||
Nutanix, Inc., Class A | (1,769 | ) | (67,611 | ) | ||||
NuVasive, Inc. | (1,716 | ) | (116,310 | ) | ||||
Oil States International, Inc. | (2,529 | ) | (19,853 | ) | ||||
Omeros Corp. | (8,865 | ) | (131,557 | ) | ||||
OSI Systems, Inc. | (1,040 | ) | (105,706 | ) | ||||
Parsons Corp. | (1,945 | ) | (76,555 | ) | ||||
Patrick Industries, Inc. | (1,496 | ) | (109,208 | ) | ||||
Pebblebrook Hotel Trust REIT | (5,417 | ) | (127,570 | ) | ||||
PennyMac Mortgage Investment Trust REIT | (8,104 | ) | (170,670 | ) | ||||
PetIQ, Inc. | (5,235 | ) | (202,071 | ) | ||||
PRA Group, Inc. | (2,851 | ) | (109,678 | ) | ||||
PROS Holdings, Inc. | (3,238 | ) | (147,556 | ) | ||||
Pure Storage, Inc., Class A | (2,546 | ) | (49,723 | ) | ||||
Rapid7, Inc. | (1,144 | ) | (108,257 | ) | ||||
Realogy Holdings Corp. | (1,496 | ) | (27,257 | ) | ||||
Redwood Trust, Inc. REIT | (2,108 | ) | (25,444 | ) | ||||
Revance Therapeutics, Inc. | (5,089 | ) | (150,838 | ) |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 61
Description | Shares | Fair Value | ||||||
Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
Royal Caribbean Cruises, Ltd. | (2,050 | ) | $ | (174,824 | ) | |||
Shift Technologies, Inc. | (14,197 | ) | (121,810 | ) | ||||
Sirius XM Holdings, Inc. | (24,215 | ) | (158,366 | ) | ||||
SmileDirectClub, Inc. | (9,679 | ) | (84,014 | ) | ||||
Splunk, Inc. | (225 | ) | (32,530 | ) | ||||
Spotify Technology SA | (10 | ) | (2,756 | ) | ||||
Stride, Inc. | (2,312 | ) | (74,285 | ) | ||||
Summit Hotel Properties, Inc. REIT | (11,129 | ) | (103,834 | ) | ||||
Sunnova Energy International, Inc. | (4,874 | ) | (183,555 | ) | ||||
SunPower Corp. | (5,808 | ) | (169,710 | ) | ||||
Tabula Rasa HealthCare, Inc. | (965 | ) | (48,250 | ) | ||||
TechTarget, Inc. | (1,892 | ) | (146,611 | ) | ||||
The Chefs’ Warehouse, Inc. | (4,213 | ) | (134,100 | ) | ||||
The Greenbrier Cos., Inc. | (2,365 | ) | (103,067 | ) | ||||
The Marcus Corp. | (9,942 | ) | (210,870 | ) | ||||
Turning Point Brands, Inc. | (3,106 | ) | (142,162 | ) | ||||
Two Harbors Investment Corp. REIT | (8,474 | ) | (64,063 | ) | ||||
Varex Imaging Corp. | (8,888 | ) | (238,376 | ) | ||||
Vishay Intertechnology, Inc. | (1,570 | ) | (35,403 | ) | ||||
Vroom, Inc. | (916 | ) | (38,344 | ) | ||||
Wayfair, Inc., Class A | (295 | ) | (93,134 | ) | ||||
Zogenix, Inc. | (4,984 | ) | (86,123 | ) | ||||
(10,616,902 | ) | |||||||
Total Common Stock (Proceeds $10,712,181) | (11,561,844 | ) |
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
US Treasury Securities | (36.2)% | ||||||||||
US Treasury Bills 0.000%, 07/27/21 | USD | (7,500 | ) | $ | (7,499,749 | ) | ||||
U.S. Treasury Notes 1.625%, 05/15/31 | USD | (182 | ) | (184,787 | ) | |||||
(Proceeds $7,684,991) | (7,684,536 | ) |
The accompanying notes are an integral part of these financial statements.
62 Semi-Annual Report
Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
Lazard Enhanced Opportunities Portfolio (concluded) | ||||||||||
Total Securities Sold Short (Proceeds $18,397,172) | $ | (19,246,380 | ) | |||||||
Total Investments | 96.0% (Cost and short proceeds $19,838,858) (») | 20,360,640 | |||||||||
Cash and Other Assets in Excess of Liabilities | 4.0% | 859,116 | |||||||||
Net Assets | 100.0% | $ | 21,219,756 |
Forward Currency Contracts open at June 30, 2021:
Currency | Currency | Settlement | Unrealized | ||||||||||||||||
Purchased | Quantity | Sold | Quantity | Counterparty | Date | Appreciation | |||||||||||||
USD | 118,338 | AUD | 157,000 | SSB | 09/24/21 | $ | 555 | ||||||||||||
USD | 329,127 | CAD | 407,000 | SSB | 09/24/21 | 806 | |||||||||||||
USD | 842,848 | EUR | 706,000 | SSB | 09/24/21 | 4,275 | |||||||||||||
Total gross unrealized appreciation on Forward Currency Contracts | $ | 5,636 |
Written Options open at June 30, 2021:
Number of | Strike | Expiration | Notional | Fair | |||||||||||||||||||||
Description | Counterparty | Contracts | Price | Date | Amount | Premiums | Value | ||||||||||||||||||
Put | |||||||||||||||||||||||||
Avaya Holdings Corp. | MSC | 7 | $ | 27 | 07/16/21 | $ | 700 | $1,074 | $ | (630 | ) |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 63
The Lazard Funds, Inc. Notes to Portfolios of Investments
June 30, 2021 (unaudited)
(*) | Non-income producing security. |
(§) | Variable and floating rate securities are securities for which interest rate changes are based on changes in a designated base rate. The rates shown are those in effect on June 30, 2021. |
(#) | Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At June 30, 2020, these securities amounted to 0.1% of net assets of Lazard Global Dynamic Multi-Asset Portfolio and 5.1% of net assets of Lazard Enhanced Opportunities Portfolio. |
(») | The portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts. |
(•) | Lazard Real Assets Portfolio’s Portfolio of Investments and accompanying notes are presented on a consolidated basis. |
(Δ) | The security is owned by Lazard Real Assets Portfolio, Ltd., a wholly-owned subsidiary of the Lazard Real Assets Portfolio. See Note 1 in the Notes to the Financial Statements. |
(‡) | Security valued using Level 2 inputs, based on reference to a similar security which was trading on an active market, under GAAP hierarchy - see Note 9 in the Notes to Financial Statements. |
(±) | Some or all of this security position has been pledged to cover collateral requirements on securities sold short. |
Security Abbreviations: | |||||
ADR | — | American Depositary Receipt | |||
ETF | — | Exchange-Traded Fund | |||
LIBOR | — | London Interbank Offered Rate | |||
NIBOR | — | Norway Interbank Offered Rate | |||
PJSC | — | Public Joint Stock Company | |||
REIT | — | Real Estate Investment Trust | |||
SOFR | — | Secured Overnight Financing Rate | |||
Currency Abbreviations: | |||||
AUD | — | Australian Dollar | JPY | — | Japanese Yen |
CAD | — | Canadian Dollar | KRW | — | South Korean Won |
CHF | — | Swiss Franc | MXN | — | Mexican New Peso |
CLP | — | Chilean Peso | NOK | — | Norwegian Krone |
CNH | — | Chinese Yuan Renminbi | NZD | — | New Zealand Dollar |
COP | — | Colombian Peso | PEN | — | Peruvian Sol |
CZK | — | Czech Koruna | PLN | — | Polish Zloty |
DKK | — | Danish Krone | RON | — | New Romanian Leu |
EUR | — | Euro | RUB | — | Russian Ruble |
GBP | — | British Pound Sterling | SEK | — | Swedish Krona |
HKD | — | Hong Kong Dollar | SGD | — | Singapore Dollar |
HUF | — | Hungarian Forint | THB | — | Thai Baht |
IDR | — | Indonesian Rupiah | USD | — | United States Dollar |
INR | — | Indian Rupee |
The accompanying notes are an integral part of these financial statements.
64 Semi-Annual Report
Counterparty Abbreviations: | ||
CIT | — | Citibank NA |
GSC | — | Goldman Sachs International |
HSB | — | HSBC Bank USA NA |
JPM | — | JPMorgan Chase Bank NA |
MSC | — | Morgan Stanley & Co. |
SSB | — | State Street Bank and Trust Co. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 65
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country:
Industry† | Lazard Global Dynamic Multi-Asset Portfolio | Lazard Real Assets Portfolio | ||||||
Common Stocks and Corporate & Quasi Government Bonds | ||||||||
Aerospace & Defense | 1.2 | % | — | % | ||||
Air Freight & Logistics | 0.6 | — | ||||||
Auto Components | 0.2 | — | ||||||
Automobiles | 1.9 | — | ||||||
Banks | 4.6 | — | ||||||
Beverages | 2.3 | — | ||||||
Biotechnology | 0.2 | — | ||||||
Building Products | 0.7 | — | ||||||
Capital Markets | 3.8 | — | ||||||
Chemicals | 0.6 | 0.6 | ||||||
Commercial Services & Suppliers | 0.3 | — | ||||||
Communications Equipment | 0.8 | — | ||||||
Construction & Engineering | 0.1 | 4.3 | ||||||
Construction Materials | 0.4 | 0.2 | ||||||
Consumer Finance | 0.2 | — | ||||||
Containers & Packaging | 0.6 | — | ||||||
Diversified Consumer Services | 0.3 | — | ||||||
Diversified Financial Services | 0.2 | — | ||||||
Diversified Telecommunication Services | 1.6 | — | ||||||
Electric Utilities | 0.6 | 3.3 | ||||||
Electrical Equipment | 1.3 | — | ||||||
Electronic Equipment, Instruments & Components | 0.9 | — | ||||||
Entertainment | 1.1 | — | ||||||
Equity Real Estate Investment Trusts (REITs) | 1.6 | 21.4 | ||||||
Food & Staples Retailing | 1.6 | — | ||||||
Food Products | 0.6 | 0.4 | ||||||
Gas Utilities | 0.2 | 2.8 | ||||||
Health Care Equipment & Supplies | 0.9 | — | ||||||
Health Care Providers & Services | 2.6 | — | ||||||
Hotels, Restaurants & Leisure | 1.7 | 0.8 | ||||||
Household Durables | 0.5 | 0.1 | ||||||
Household Products | 1.2 | — | ||||||
Independent Power & Renewable Electricity Producers | 0.3 | — | ||||||
Industrial Conglomerates | 0.4 | — | ||||||
Insurance | 2.2 | — | ||||||
Interactive Media & Services | 2.9 | — | ||||||
Internet & Direct Marketing Retail | 1.7 | — |
The accompanying notes are an integral part of these financial statements.
66 Semi-Annual Report
Industry† | Lazard Global Dynamic Multi-Asset Portfolio | Lazard Real Assets Portfolio | ||||||
IT Services | 2.6 | % | — | % | ||||
Leisure Products | 0.6 | — | ||||||
Life Sciences Tools & Services | 2.1 | — | ||||||
Machinery | 1.8 | — | ||||||
Marine | 0.1 | — | ||||||
Media | 0.9 | 0.9 | ||||||
Metals & Mining | 0.9 | 0.4 | ||||||
Multiline Retail | 0.9 | — | ||||||
Multi-Utilities | 0.3 | 5.0 | ||||||
Oil, Gas & Consumable Fuels | 1.8 | — | ||||||
Paper & Forest Products | 0.1 | — | ||||||
Personal Products | 0.5 | — | ||||||
Pharmaceuticals | 3.8 | — | ||||||
Professional Services | 1.6 | — | ||||||
Real Estate Management & Development | 0.5 | 7.8 | ||||||
Road & Rail | 0.6 | 1.8 | ||||||
Semiconductors & Semiconductor Equipment | 3.6 | — | ||||||
Software | 5.3 | — | ||||||
Specialty Retail | 1.9 | — | ||||||
Technology Hardware, Storage & Peripherals | 3.4 | — | ||||||
Textiles, Apparel & Luxury Goods | 0.9 | — | ||||||
Thrifts & Mortgage Finance | 0.1 | — | ||||||
Tobacco | 0.5 | — | ||||||
Trading Companies & Distributors | 0.2 | — | ||||||
Transportation Infrastructure | — | 4.3 | ||||||
Water Utilities | — | 3.1 | ||||||
Wireless Telecommunication Services | 0.5 | — | ||||||
Subtotal | 78.4 | 57.2 | ||||||
Exchange Traded Funds | 5.0 | 4.3 | ||||||
Foreign Government Obligations | 11.8 | — | ||||||
Supranationals | 2.2 | — | ||||||
US Municipal Bonds | 1.3 | — | ||||||
Short-Term Investments | 1.5 | 33.0 | ||||||
Total Investments | 100.2 | % | 94.5 | % |
† | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 67
Portfolio holdings by industry (as a percentage of net assets), for the Portfolio previously presented by country:
Lazard Enhanced Opportunities Portfolio | |||||||||
Industry† | Long | Short | |||||||
Common Stocks and Convertible Corporate Bonds | |||||||||
Aerospace & Defense | 1.8 | % | –0.6 | % | |||||
Air Freight & Logistics | 3.5 | –1.6 | |||||||
Airlines | 1.0 | –0.2 | |||||||
Auto Components | 1.4 | –0.5 | |||||||
Automobiles | 3.5 | –1.9 | |||||||
Banks | 2.8 | –0.2 | |||||||
Biotechnology | 11.1 | –4.7 | |||||||
Consumer Finance | 6.6 | –3.2 | |||||||
Diversified Consumer Services | 0.9 | –0.3 | |||||||
Diversified Financial Services | 2.2 | — | |||||||
Electronic Equipment, Instruments & Components | 2.2 | –0.7 | |||||||
Energy Equipment & Services | 1.7 | –0.9 | |||||||
Entertainment | 2.6 | –3.3 | |||||||
Equity Real Estate Investment Trusts (REITs) | 4.0 | –2.9 | |||||||
Food & Staples Retailing | 1.9 | –0.6 | |||||||
Food Products | 0.9 | –0.5 | |||||||
Health Care Equipment & Supplies | 6.0 | –3.2 | |||||||
Health Care Providers & Services | 1.7 | –1.2 | |||||||
Health Care Technology | 0.5 | –0.2 | |||||||
Hotels, Restaurants & Leisure | 2.8 | –1.5 | |||||||
Independent Power & Renewable Electricity Producers | 1.1 | –0.9 | |||||||
Interactive Media & Services | 2.0 | –0.4 | |||||||
Internet & Direct Marketing Retail | 3.7 | –2.0 | |||||||
IT Services | 4.1 | –1.1 | |||||||
Machinery | 2.1 | –0.5 | |||||||
Media | 14.2 | –3.2 | |||||||
Metals & Mining | 3.4 | –1.3 | |||||||
Mortgage Real Estate Investment Trusts (REITs) | 6.9 | –2.2 | |||||||
Personal Products | 1.5 | –0.6 | |||||||
Pharmaceuticals | 9.1 | –3.5 | |||||||
Real Estate Management & Development | 1.9 | –1.2 | |||||||
Semiconductors & Semiconductor Equipment | 3.2 | –1.8 | |||||||
Software | 11.4 | –5.3 | |||||||
Specialty Retail | 2.3 | –1.4 | |||||||
Technology Hardware, Storage & Peripherals | 0.9 | –0.2 | |||||||
Tobacco | 1.5 | –0.7 | |||||||
Subtotal | 128.4 | –54.5 | |||||||
US Treasury Securities | — | –36.2 | |||||||
Short-Term Investments | 58.3 | — | |||||||
Total Investments | 186.7 | % | –90.7 | % |
† | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
68 Semi-Annual Report
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Semi-Annual Report 69
The Lazard Funds, Inc. Statements of Assets and Liabilities (unaudited)
June 30, 2021 | Lazard Global Dynamic Multi-Asset Portfolio | | Lazard Opportunistic Strategies Portfolio | | | ||||
ASSETS | |||||||||
Investments in securities, at fair value | $ | 17,509,120 | $ | 86,164,446 | |||||
Cash | 227 | — | |||||||
Foreign currency, at fair value | 51,357 | — | |||||||
Receivables for: | |||||||||
Dividends and interest | 82,514 | 49,443 | |||||||
Capital stock sold | — | 21,529 | |||||||
Investments sold | 42,915 | — | |||||||
Amount due from Investment Manager (Note 3) | 5,919 | — | |||||||
Cash collateral due from broker on options | — | — | |||||||
Gross unrealized appreciation on: | |||||||||
Swap agreements | — | — | |||||||
Forward currency contracts | 107,737 | — | |||||||
Prepaid expenses | 13,723 | — | |||||||
Total assets | 17,813,512 | 86,235,418 | |||||||
LIABILITIES | |||||||||
Securities sold short, at fair value | — | 3,137,014 | |||||||
Cash collateral due to broker on futures contracts and swap agreements | — | — | |||||||
Payables for: | |||||||||
Management fees | — | 54,435 | |||||||
Accrued professional services | 24,868 | 28,110 | |||||||
Accrued custodian fees | 79,577 | 27,696 | |||||||
Accrued directors’ fees | 1,985 | 2,273 | |||||||
Accrued distribution fees | 46 | 36 | |||||||
Capital stock redeemed | — | 1,082,654 | |||||||
Investments purchased | 105,969 | — | |||||||
Dividends on securities sold short | — | — | |||||||
Variation margin on open futures contracts | — | — | |||||||
Gross unrealized depreciation on forward currency contracts | 118,919 | — | |||||||
Written options, at fair value | — | — | |||||||
Other accrued expenses and payables | 1,518 | 23,599 | |||||||
Total liabilities | 332,882 | 4,355,817 | |||||||
Net assets | $ | 17,480,630 | $ | 81,879,601 |
The accompanying notes are an integral part of these financial statements.
70 Semi-Annual Report
Lazard Real Assets Portfolio (a) | Lazard Enhanced Opportunities Portfolio | ||||||||
$ | 31,759,741 | $ | 39,607,020 | ||||||
— | 7,833 | ||||||||
3,960 | 100 | ||||||||
105,383 | 143,614 | ||||||||
49,550 | 75,000 | ||||||||
6,140,082 | 309,556 | ||||||||
— | — | ||||||||
— | 731,587 | ||||||||
2,527,142 | — | ||||||||
114,327 | 5,636 | ||||||||
7,026 | — | ||||||||
40,707,211 | 40,880,346 | ||||||||
— | 19,246,380 | ||||||||
839,810 | — | ||||||||
2,481 | 1,077 | ||||||||
46,836 | 28,901 | ||||||||
68,988 | 85,412 | ||||||||
1,357 | 1,392 | ||||||||
11 | 65 | ||||||||
6,000,000 | — | ||||||||
137,302 | 274,628 | ||||||||
— | 5,418 | ||||||||
2,101 | — | ||||||||
— | — | ||||||||
— | 630 | ||||||||
10,440 | 16,687 | ||||||||
7,109,326 | 19,660,590 | ||||||||
$ | 33,597,885 | $ | 21,219,756 |
Semi-Annual Report 71
June 30, 2021 | Lazard Global Dynamic Multi-Asset Portfolio | Lazard Opportunistic Strategies Portfolio | |||||||
NET ASSETS | |||||||||
Paid in capital | $ | 10,172,585 | $ | 65,245,170 | |||||
Distributable earnings (Accumulated loss) | 7,308,045 | 16,634,431 | |||||||
Net assets | $ | 17,480,630 | $ | 81,879,601 | |||||
Institutional Shares | |||||||||
Net assets | $ | 17,266,826 | $ | 81,724,927 | |||||
Shares of capital stock outstanding* | 1,525,875 | 7,147,670 | |||||||
Net asset value, offering and redemption price per share | $ | 11.32 | $ | 11.43 | |||||
Open Shares | |||||||||
Net assets | $ | 213,804 | $ | 154,674 | |||||
Shares of capital stock outstanding* | 18,911 | 13,621 | |||||||
Net asset value, offering and redemption price per share | $ | 11.31 | $ | 11.36 | |||||
Cost of investments in securities | $ | 13,972,174 | $ | 70,516,815 | |||||
Proceeds received from securities sold short | $ | — | $ | 3,238,622 | |||||
Proceeds received from written options | $ | — | $ | — | |||||
Cost of foreign currency | $ | 51,565 | $ | — |
* | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
(a) | Consolidated Statement of Assets and Liabilities. |
The accompanying notes are an integral part of these financial statements.
72 Semi-Annual Report
Lazard Real Assets Portfolio (a) | Lazard Enhanced Opportunities Portfolio | ||||||||
$ | 28,598,854 | $ | 20,420,356 | ||||||
4,999,031 | 799,400 | ||||||||
$ | 33,597,885 | $ | 21,219,756 | ||||||
$ | 33,512,621 | $ | 20,681,940 | ||||||
2,862,461 | 2,178,439 | ||||||||
$ | 11.71 | $ | 9.49 | ||||||
$ | 85,264 | $ | 537,816 | ||||||
7,275 | 56,717 | ||||||||
$ | 11.72 | $ | 9.48 | ||||||
$ | 29,150,717 | $ | 38,236,030 | ||||||
$ | — | $ | 18,397,172 | ||||||
$ | — | $ | 1,074 | ||||||
$ | 3,977 | $ | 100 |
Semi-Annual Report 73
The Lazard Funds, Inc. Statements of Operations (unaudited)
For the Period Ended June 30, 2021 | Lazard Global Dynamic Multi-Asset Portfolio | Lazard Opportunistic Strategies Portfolio | ||||||||
Investment Income (Loss) | ||||||||||
Income | ||||||||||
Dividends | $ | 188,287 | $ | 521,021 | ||||||
Interest | 143,010 | 277 | ||||||||
Total investment income* | 331,297 | 521,298 | ||||||||
Expenses | ||||||||||
Management fees (Note 3) | 143,830 | 403,479 | ||||||||
Custodian fees | 49,608 | 16,205 | ||||||||
Professional services | 19,111 | 23,092 | ||||||||
Registration fees | 17,798 | 10,160 | ||||||||
Administration fees | 13,077 | 15,873 | ||||||||
Directors’ fees and expenses | 3,883 | 4,401 | ||||||||
Shareholders’ services | 5,368 | 6,214 | ||||||||
Shareholders’ reports | 6,039 | 16,097 | ||||||||
Distribution fees (Open Shares) | 285 | 189 | ||||||||
Other^ | 3,219 | 3,265 | ||||||||
Total gross expenses before expenses on securities sold short | 262,218 | 498,975 | ||||||||
Broker expense on securities sold short | — | 16,088 | ||||||||
Dividend expense on securities sold short | — | 16,389 | ||||||||
Total gross expenses | 262,218 | 531,452 | ||||||||
Management fees waived and expenses reimbursed | (99,313 | ) | (86,818 | ) | ||||||
Voluntary reimbursement by administrator | — | — | ||||||||
Total net expenses | 162,905 | 444,634 | ||||||||
Net investment income (loss) | 168,392 | 76,664 | ||||||||
Net Realized and Unrealized Gain (Loss) | ||||||||||
Net realized gain (loss) on: | ||||||||||
Investments | 5,302,463 | 1,129,130 | ||||||||
Securities sold short | — | — | ||||||||
Foreign currency transactions | (53,454 | ) | — | |||||||
Forward currency contracts | (247,759 | ) | — | |||||||
Futures contracts | — | — | ||||||||
Written options | — | — | ||||||||
Swap agreements | — | — | ||||||||
Total net realized gain (loss) | 5,001,250 | 1,129,130 | ||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||
Investments | (3,843,362 | ) | 4,939,866 | |||||||
Securities sold short | — | 101,608 | ||||||||
Foreign currency translations | (6,088 | ) | — | |||||||
Forward currency contracts | 58,261 | — | ||||||||
Futures contracts | — | — | ||||||||
Written options | — | — | ||||||||
Swap agreements | — | — | ||||||||
Total net change in unrealized appreciation (depreciation) | (3,791,189 | ) | 5,041,474 | |||||||
Net realized and unrealized gain (loss) | 1,210,061 | 6,170,604 | ||||||||
Net increase (decrease) in net assets resulting from operations | $ | 1,378,453 | $ | 6,247,268 | ||||||
* | Net of foreign withholding taxes of | $ | 9,153 | $ | — | |||||
^ | Includes interest on line of credit of | $ | 515 | $ | — | |||||
(a) | Consolidated Statement of Operations. |
The accompanying notes are an integral part of these financial statements.
74 Semi-Annual Report
Lazard Real Assets Portfolio (a) | Lazard Enhanced Opportunities Portfolio | ||||||||
$ | 336,230 | $ | 226 | ||||||
316 | 397,679 | ||||||||
336,546 | 397,905 | ||||||||
92,324 | 95,419 | ||||||||
46,662 | 51,999 | ||||||||
36,465 | 24,384 | ||||||||
19,501 | 18,080 | ||||||||
12,605 | 14,294 | ||||||||
7,820 | 2,750 | ||||||||
4,926 | 4,927 | ||||||||
3,419 | 13,355 | ||||||||
102 | 510 | ||||||||
7,061 | 3,369 | ||||||||
230,885 | 229,087 | ||||||||
— | 50,921 | ||||||||
— | 27,364 | ||||||||
230,885 | 307,372 | ||||||||
(117,016 | ) | (102,780 | ) | ||||||
— | (33,105 | ) | |||||||
113,869 | 171,487 | ||||||||
222,677 | 226,418 | ||||||||
345,606 | 5,737,305 | ||||||||
— | (4,439,980 | ) | |||||||
108 | (6,830 | ) | |||||||
(23,273 | ) | 15,163 | |||||||
132,967 | — | ||||||||
— | 7,674 | ||||||||
(433,062 | ) | — | |||||||
22,346 | 1,313,332 | ||||||||
1,002,963 | (3,157,941 | ) | |||||||
— | 2,426,194 | ||||||||
(1,732 | ) | (195 | ) | ||||||
177,302 | 3,309 | ||||||||
134,009 | — | ||||||||
— | 135 | ||||||||
2,119,849 | — | ||||||||
3,432,391 | (728,498 | ) | |||||||
3,454,737 | 584,834 | ||||||||
$ | 3,677,414 | $ | 811,252 | ||||||
$ | 23,862 | $ | — | ||||||
$ | 27 | $ | 145 |
Semi-Annual Report 75
The Lazard Funds, Inc. Statements of Changes in Net Assets (unaudited)
Lazard Global Dynamic Multi-Asset Portfolio | ||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 168,392 | $ | 430,657 | ||||||
Net realized gain (loss) | 5,001,250 | (167,823 | ) | |||||||
Net change in unrealized appreciation (depreciation) | (3,791,189 | ) | 1,850,264 | |||||||
Net increase (decrease) in net assets resulting from operations | 1,378,453 | 2,113,098 | ||||||||
Distributions to shareholders (Note 2(i)) | ||||||||||
Net investment Income and net realized gains Institutional Shares | — | (1,164,138 | ) | |||||||
Open Shares | — | (4,081 | ) | |||||||
Net decrease in net assets resulting from distributions | — | (1,168,219 | ) | |||||||
Capital stock transactions | ||||||||||
Net proceeds from sales | ||||||||||
Institutional Shares | 1,400,239 | 13,573,016 | ||||||||
Open Shares | 3,170 | 38,391 | ||||||||
Net proceeds from reinvestment of distributions Institutional Shares | — | 1,164,138 | ||||||||
Open Shares | — | 4,081 | ||||||||
Cost of shares redeemed | ||||||||||
Institutional Shares | (43,423,748 | ) | (5,246,998 | ) | ||||||
Open Shares | (38,519 | ) | (90,981 | ) | ||||||
Net increase (decrease) in net assets from capital stock transactions | (42,058,858 | ) | 9,441,647 | |||||||
Total increase (decrease) in net assets | (40,680,405 | ) | 10,386,526 | |||||||
Net assets at beginning of period | 58,161,035 | 47,774,509 | ||||||||
Net assets at end of period | $ | 17,480,630 | $ | 58,161,035 |
The accompanying notes are an integral part of these financial statements.
76 Semi-Annual Report
Lazard Opportunistic Strategies Portfolio | Lazard Real Assets Portfolio (a) | |||||||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||||||
$ | 76,664 | $ | 421,403 | $ | 222,677 | $ | 344,431 | |||||||||
1,129,130 | 840,299 | 22,346 | (39,763 | ) | ||||||||||||
5,041,474 | 5,372,262 | 3,432,391 | 538,292 | |||||||||||||
6,247,268 | 6,633,964 | 3,677,414 | 842,960 | |||||||||||||
— | (1,635,417 | ) | (54,848 | ) | (890,908 | ) | ||||||||||
— | (2,819 | ) | (49 | ) | (3,741 | ) | ||||||||||
— | (1,638,236 | ) | (54,897 | ) | (894,649 | ) | ||||||||||
4,066,219 | 4,433,096 | 5,969,552 | 6,113,393 | |||||||||||||
29,729 | 1,947 | 6,121 | 1,056,495 | |||||||||||||
— | 1,561,574 | 52,668 | 890,908 | |||||||||||||
— | 2,617 | 49 | 3,741 | |||||||||||||
(6,693,249 | ) | (16,379,299 | ) | (80,914 | ) | (451,652 | ) | |||||||||
(40,247 | ) | (62,305 | ) | (46,364 | ) | (1,066,899 | ) | |||||||||
(2,637,548 | ) | (10,442,370 | ) | 5,901,112 | 6,545,986 | |||||||||||
3,609,720 | (5,446,642 | ) | 9,523,629 | 6,494,297 | ||||||||||||
78,269,881 | 83,716,523 | 24,074,256 | 17,579,959 | |||||||||||||
$ | 81,879,601 | $ | 78,269,881 | $ | 33,597,885 | $ | 24,074,256 |
Semi-Annual Report 77
Lazard Global Dynamic Multi-Asset Portfolio | ||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||
Shares issued and redeemed | ||||||||||
Institutional Shares | ||||||||||
Shares outstanding at beginning of period | 5,427,381 | 4,403,915 | ||||||||
Shares sold | 129,681 | 1,431,989 | ||||||||
Shares issued to shareholders from reinvestment of distributions | — | 110,450 | ||||||||
Shares redeemed | (4,031,187 | ) | (518,973 | ) | ||||||
Net increase (decrease) | (3,901,506 | ) | 1,023,466 | |||||||
Shares outstanding at end of period | 1,525,875 | 5,427,381 | ||||||||
Open Shares | ||||||||||
Shares outstanding at beginning of period | 22,108 | 27,210 | ||||||||
Shares sold | 287 | 3,726 | ||||||||
Shares issued to shareholders from reinvestment of distributions | — | 387 | ||||||||
Shares redeemed | (3,484 | ) | (9,215 | ) | ||||||
Net increase (decrease) | (3,197 | ) | (5,102 | ) | ||||||
Shares outstanding at end of period | 18,911 | 22,108 |
(a) | Consolidated Statements of Changes in Net Assets. |
The accompanying notes are an integral part of these financial statements.
78 Semi-Annual Report
Lazard Opportunistic Strategies Portfolio | Lazard Real Assets Portfolio (a) | |||||||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||||||
7,380,473 | 8,460,555 | 2,319,287 | 1,639,120 | |||||||||||||
369,651 | 460,110 | 545,788 | 636,605 | |||||||||||||
— | 148,761 | 4,728 | 89,265 | |||||||||||||
(602,454 | ) | (1,688,953 | ) | (7,342 | ) | (45,703 | ) | |||||||||
(232,803 | ) | (1,080,082 | ) | 543,174 | 680,167 | |||||||||||
7,147,670 | 7,380,473 | 2,862,461 | 2,319,287 | |||||||||||||
14,614 | 21,180 | 11,188 | 6,050 | |||||||||||||
2,733 | 205 | 536 | 119,887 | |||||||||||||
— | 251 | 4 | 373 | |||||||||||||
(3,726 | ) | (7,022 | ) | (4,453 | ) | (115,122 | ) | |||||||||
(993 | ) | (6,566 | ) | (3,913 | ) | 5,138 | ||||||||||
13,621 | 14,614 | 7,275 | 11,188 |
Semi-Annual Report 79
Lazard Enhanced Opportunities Portfolio | ||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 226,418 | $ | 288,181 | ||||||
Net realized gain (loss) | 1,313,332 | 237,649 | ||||||||
Net change in unrealized appreciation (depreciation) | (728,498 | ) | 1,372,416 | |||||||
Net increase (decrease) in net assets resulting from operations | 811,252 | 1,898,246 | ||||||||
Distributions to shareholders (Note 2(i)) | ||||||||||
Net investment Income and net realized gains | ||||||||||
Institutional Shares | — | (1,185,411 | ) | |||||||
Open Shares | — | (9,395 | ) | |||||||
Net decrease in net assets resulting from distributions | — | (1,194,806 | ) | |||||||
Capital stock transactions | ||||||||||
Net proceeds from sales | ||||||||||
Institutional Shares | 5,782,018 | 11,095,505 | ||||||||
Open Shares | 591,487 | 3,369,722 | ||||||||
Net proceeds from reinvestment of distributions Institutional Shares | — | 1,185,411 | ||||||||
Open Shares | — | 9,395 | ||||||||
Cost of shares redeemed | ||||||||||
Institutional Shares | (5,441,735 | ) | (2,567,231 | ) | ||||||
Open Shares | (228,265 | ) | (3,436,893 | ) | ||||||
Net increase (decrease) in net assets from capital stock transactions | 703,505 | 9,655,909 | ||||||||
Total increase (decrease) in net assets | 1,514,757 | 10,359,349 | ||||||||
Net assets at beginning of period | 19,704,999 | 9,345,650 | ||||||||
Net assets at end of period | $ | 21,219,756 | $ | 19,704,999 |
The accompanying notes are an integral part of these financial statements.
80 Semi-Annual Report
Lazard Enhanced Opportunities Portfolio | ||||||||||
Six Months Ended June 30, 2021 (unaudited) | Year Ended December 31, 2020 | |||||||||
Shares issued and redeemed | ||||||||||
Institutional Shares | ||||||||||
Shares outstanding at beginning of period | 2,140,850 | 1,043,282 | ||||||||
Shares sold | 612,756 | 1,253,802 | ||||||||
Shares issued to shareholders from reinvestment of distributions | — | 130,284 | ||||||||
Shares redeemed | (575,167 | ) | (286,518 | ) | ||||||
Net increase (decrease) | 37,589 | 1,097,568 | ||||||||
Shares outstanding at end of period | 2,178,439 | 2,140,850 | ||||||||
Open Shares | ||||||||||
Shares outstanding at beginning of period | 18,359 | 13,910 | ||||||||
Shares sold | 62,501 | 402,978 | ||||||||
Shares issued to shareholders from reinvestment of distributions | — | 1,035 | ||||||||
Shares redeemed | (24,143 | ) | (399,564 | ) | ||||||
Net increase (decrease) | 38,358 | 4,449 | ||||||||
Shares outstanding at end of period | 56,717 | 18,359 |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 81
The Lazard Funds, Inc. Financial Highlights (unaudited)
LAZARD GLOBAL DYNAMIC MULTI-ASSET PORTFOLIO
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | For the Period 5/27/16* to | |||||||||||||||||||||
the period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.67 | $ | 10.78 | $ | 9.27 | $ | 11.49 | $ | 10.00 | $ | 10.00 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | 0.05 | 0.08 | 0.14 | 0.16 | 0.15 | 0.06 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.60 | 0.02 | 1.51 | (0.92 | ) | 1.92 | (0.01 | ) | ||||||||||||||||
Total from investment operations | 0.65 | 0.10 | 1.65 | (0.76 | ) | 2.07 | 0.05 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.21 | ) | (0.14 | ) | (0.20 | ) | (0.14 | ) | (0.05 | ) | |||||||||||||
Net realized gains | — | — | — | (1.26 | ) | (0.44 | ) | — | (b) | |||||||||||||||
Total distributions | — | (0.21 | ) | (0.14 | ) | (1.46 | ) | (0.58 | ) | (0.05 | ) | |||||||||||||
Net asset value, end of period | $ | 11.32 | $ | 10.67 | $ | 10.78 | $ | 9.27 | $ | 11.49 | $ | 10.00 | ||||||||||||
Total Return (c) | 6.09 | % | 1.00 | % | 17.80 | % | –6.35 | % | 20.69 | % | 0.53 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 17,267 | $ | 57,925 | $ | 47,481 | $ | 42,577 | $ | 68,761 | $ | 48,544 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | ||||||||||||
Gross expenses | 1.44 | % | 1.32 | % | 1.45 | % | 1.34 | % | 1.42 | % | 2.14 | % | ||||||||||||
Net investment income (loss) | 0.94 | % | 0.84 | % | 1.36 | % | 1.36 | % | 1.40 | % | 0.95 | % | ||||||||||||
Portfolio turnover rate | 46 | % | 173 | % | 125 | % | 120 | % | 102 | % | 67 | % |
The accompanying notes are an integral part of these financial statements.
82 Semi-Annual Report
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | For the Period 5/27/16* to | |||||||||||||||||||||
the period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Open Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.68 | $ | 10.78 | $ | 9.27 | $ | 11.49 | $ | 10.00 | $ | 10.00 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | 0.04 | 0.06 | 0.11 | 0.12 | 0.12 | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss) | 0.59 | 0.03 | 1.51 | (0.91 | ) | 1.91 | (0.01 | ) | ||||||||||||||||
Total from investment operations | 0.63 | 0.09 | 1.62 | (0.79 | ) | 2.03 | 0.03 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.19 | ) | (0.11 | ) | (0.17 | ) | (0.10 | ) | (0.03 | ) | |||||||||||||
Net realized gains | — | — | — | (1.26 | ) | (0.44 | ) | — | (b) | |||||||||||||||
Total distributions | — | (0.19 | ) | (0.11 | ) | (1.43 | ) | (0.54 | ) | (0.03 | ) | |||||||||||||
Net asset value, end of period | $ | 11.31 | $ | 10.68 | $ | 10.78 | $ | 9.27 | $ | 11.49 | $ | 10.00 | ||||||||||||
Total Return (c) | 5.90 | % | 0.84 | % | 17.46 | % | –6.64 | % | 20.33 | % | 0.35 | % | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 214 | $ | 236 | $ | 293 | $ | 225 | $ | 414 | $ | 210 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 1.15 | % | 1.15 | % | 1.18 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||||
Gross expenses | 3.60 | % | 3.09 | % | 5.45 | % | 4.20 | % | 5.79 | % | 9.43 | % | ||||||||||||
Net investment income (loss) | 0.79 | % | 0.61 | % | 1.10 | % | 1.07 | % | 1.09 | % | 0.72 | % | ||||||||||||
Portfolio turnover rate | 46 | % | 173 | % | 125 | % | 120 | % | 102 | % | 67 | % |
† | Unaudited. |
* | The Portfolio commenced operations on May 27, 2016. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 83
LAZARD OPPORTUNISTIC STRATEGIES PORTFOLIO
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | ||||||||||||||||||||||
each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Institutional Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.58 | $ | 9.87 | $ | 8.74 | $ | 10.60 | $ | 9.70 | $ | 9.36 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | 0.01 | 0.05 | 0.10 | 0.14 | 0.10 | 0.16 | ^ | |||||||||||||||||
Net realized and unrealized gain (loss) | 0.84 | 0.88 | 1.23 | (1.48 | ) | 1.62 | 0.34 | |||||||||||||||||
Total from investment operations | 0.85 | 0.93 | 1.33 | (1.34 | ) | 1.72 | 0.50 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.05 | ) | (0.12 | ) | (0.02 | ) | (0.14 | ) | (0.14 | ) | |||||||||||||
Net realized gains | — | (0.17 | ) | (0.08 | ) | (0.48 | ) | (0.68 | ) | — | ||||||||||||||
Return of capital | — | — | — | (0.02 | ) | — | (0.02 | ) | ||||||||||||||||
Total distributions | — | (0.22 | ) | (0.20 | ) | (0.52 | ) | (0.82 | ) | (0.16 | ) | |||||||||||||
Redemption fees | — | — | — | — | — | — | (b) | |||||||||||||||||
Net asset value, end of period | $ | 11.43 | $ | 10.58 | $ | 9.87 | $ | 8.74 | $ | 10.60 | $ | 9.70 | ||||||||||||
Total Return (c) | 8.03 | % | 9.47 | % | 15.16 | % | –12.72 | % | 17.74 | % | 5.36 | %^ | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 81,725 | $ | 78,116 | $ | 83,509 | $ | 102,783 | $ | 151,767 | $ | 141,494 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 1.10 | % | 1.04 | % | 1.22 | % | 1.02 | % | 1.05 | % | 1.02 | %^ | ||||||||||||
Gross expenses | 1.31 | % | 1.30 | % | 1.43 | % | 1.15 | % | 1.18 | % | 1.19 | % | ||||||||||||
Gross expenses, excluding expenses on securities sold short | 1.23 | % | 1.29 | % | 1.23 | % | 1.15 | %* | 1.15 | % | 1.19 | % | ||||||||||||
Net investment income (loss) | 0.19 | % | 0.55 | % | 1.08 | % | 1.32 | % | 0.99 | % | 1.72 | %^ | ||||||||||||
Portfolio turnover rate: | ||||||||||||||||||||||||
Excluding securities sold short | 15 | % | 88 | % | 82 | % | 227 | % | 142 | % | 238 | % | ||||||||||||
Including securities sold short | 15 | % | 94 | % | 99 | % | N/A | %* | 153 | % | N/A | %* |
The accompanying notes are an integral part of these financial statements.
84 Semi-Annual Report
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | ||||||||||||||||||||||
each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | ||||||||||||||||||
Open Shares | ||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.52 | $ | 9.82 | $ | 8.69 | $ | 10.55 | $ | 9.65 | $ | 9.32 | ||||||||||||
Income (Loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) (a) | — | 0.03 | 0.07 | 0.10 | 0.05 | 0.13 | ^ | |||||||||||||||||
Net realized and unrealized gain (loss) | 0.84 | 0.86 | 1.23 | (1.46 | ) | 1.64 | 0.33 | |||||||||||||||||
Total from investment operations | 0.84 | 0.89 | 1.30 | (1.36 | ) | 1.69 | 0.46 | |||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||
Net investment income | — | (0.02 | ) | (0.09 | ) | — | (0.11 | ) | (0.11 | ) | ||||||||||||||
Net realized gains | — | (0.17 | ) | (0.08 | ) | (0.48 | ) | (0.68 | ) | — | ||||||||||||||
Return of capital | — | — | — | (0.02 | ) | — | (0.02 | ) | ||||||||||||||||
Total distributions | — | (0.19 | ) | (0.17 | ) | (0.50 | ) | (0.79 | ) | (0.13 | ) | |||||||||||||
Net asset value, end of period | $ | 11.36 | $ | 10.52 | $ | 9.82 | $ | 8.69 | $ | 10.55 | $ | 9.65 | ||||||||||||
Total Return (c) | 7.98 | % | 9.14 | % | 14.91 | % | –13.05 | % | 17.48 | % | 4.97 | %^ | ||||||||||||
Ratios and Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 155 | $ | 154 | $ | 208 | $ | 286 | $ | 428 | $ | 823 | ||||||||||||
Ratios to average net assets (d): | ||||||||||||||||||||||||
Net expenses | 1.35 | % | 1.28 | % | 1.51 | % | 1.32 | % | 1.34 | % | 1.32 | %^ | ||||||||||||
Gross expenses | 4.97 | % | 7.75 | % | 3.78 | % | 4.22 | % | 3.87 | % | 3.31 | % | ||||||||||||
Gross expenses, excluding expenses on securities sold short | 4.89 | % | 7.74 | % | 3.58 | % | 4.22 | %* | 3.85 | % | 3.31 | %* | ||||||||||||
Net investment income (loss) | -0.08 | % | 0.31 | % | 0.76 | % | 1.00 | % | 0.53 | % | 1.43 | %^ | ||||||||||||
Portfolio turnover rate: | ||||||||||||||||||||||||
Excluding securities sold short | 15 | % | 88 | % | 82 | % | 227 | % | 142 | % | 238 | % | ||||||||||||
Including securities sold short | 15 | % | 94 | % | 99 | % | N/A | %* | 153 | % | N/A | %* |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 85
† | Unaudited. |
^ | Refer to Note 3 in the Notes to Financial Statements for discussion of prior period custodian out-of-pocket expenses that were reimbursed to the Portfolio in the period. The amount of the reimbursement was less than $0.005 per share. There was no impact on the total return of the Portfolio. The net expenses and net investment income (loss) ratios of the Portfolio would be unchanged as the change to period custodian fees was offset against current period expense waivers/reimbursements with no impact to net expenses or net investment income (loss). |
* | No securities sold short during the year. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for periods less than one year. |
The accompanying notes are an integral part of these financial statements.
86 Semi-Annual Report
LAZARD REAL ASSETS PORTFOLIO^
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | For the Period 12/31/16* to | ||||||||||||||||||||||
each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 10.33 | $ | 10.69 | $ | 9.42 | $ | 10.71 | $ | 10.00 | $ | 10.00 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.09 | 0.17 | 0.16 | 0.16 | 0.19 | — | |||||||||||||||||||
Net realized and unrealized gain (loss) | 1.31 | (0.12 | ) | 1.35 | (0.96 | ) | 0.78 | — | (b) | ||||||||||||||||
Total from investment operations | 1.40 | 0.05 | 1.51 | (0.80 | ) | 0.97 | — | (b) | |||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | (0.02 | ) | (0.20 | ) | (0.24 | ) | (0.25 | ) | (0.13 | ) | — | ||||||||||||||
Net realized gains | — | (0.21 | ) | — | (b) | (0.24 | ) | (0.13 | ) | — | |||||||||||||||
Total distributions | (0.02 | ) | (0.41 | ) | (0.24 | ) | (0.49 | ) | (0.26 | ) | — | ||||||||||||||
Net asset value, end of period | $ | 11.71 | $ | 10.33 | $ | 10.69 | $ | 9.42 | $ | 10.71 | $ | 10.00 | |||||||||||||
Total Return (c) | 13.56 | % | 0.61 | % | 16.07 | % | –7.47 | % | 9.80 | % | 0.00 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 33,513 | $ | 23,959 | $ | 17,515 | $ | 16,164 | $ | 17,812 | $ | 13,090 | |||||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||||||
Net expenses | 0.80 | % | 0.86 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.00 | % | |||||||||||||
Gross expenses | 1.61 | % | 2.13 | % | 2.20 | % | 2.04 | % | 3.13 | % | 3.49 | % | |||||||||||||
Net investment income (loss) | 1.57 | % | 1.73 | % | 1.59 | % | 1.53 | % | 1.79 | % | 0.00 | % | |||||||||||||
Portfolio turnover rate | 19 | % | 109 | % | 44 | % | 72 | % | 76 | % | 0 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 87
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | For the Period 1/9/17* to | ||||||||||||||||||
each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | ||||||||||||||||
Open Shares | |||||||||||||||||||||
Net asset value, beginning of period | $ | 10.34 | $ | 10.67 | $ | 9.41 | $ | 10.70 | $ | 10.03 | |||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||
Net investment income (loss) (a) | 0.07 | 0.17 | 0.14 | 0.14 | 0.18 | ||||||||||||||||
Net realized and unrealized gain (loss) | 1.32 | (0.14 | ) | 1.33 | (0.96 | ) | 0.74 | ||||||||||||||
Total from investment operations | 1.39 | 0.03 | 1.47 | (0.82 | ) | 0.92 | |||||||||||||||
Less distributions from: | |||||||||||||||||||||
Net investment income | (0.01 | ) | (0.15 | ) | (0.21 | ) | (0.23 | ) | (0.12 | ) | |||||||||||
Net realized gains | — | (0.21 | ) | — | (b) | (0.24 | ) | (0.13 | ) | ||||||||||||
Total distributions | (0.01 | ) | (0.36 | ) | (0.21 | ) | (0.47 | ) | (0.25 | ) | |||||||||||
Net asset value, end of period | $ | 11.72 | $ | 10.34 | $ | 10.67 | $ | 9.41 | $ | 10.70 | |||||||||||
Total Return (c) | 13.41 | % | 0.42 | % | 15.70 | % | –7.70 | % | 9.17 | % | |||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 85 | $ | 116 | $ | 65 | $ | 43 | $ | 135 | |||||||||||
Ratios to average net assets (d): | |||||||||||||||||||||
Net expenses | 1.00 | % | 1.13 | % | 1.10 | % | 1.15 | % | 1.15 | % | |||||||||||
Gross expenses | 7.34 | % | 4.64 | % | 23.75 | % | 13.72 | % | 20.65 | % | |||||||||||
Net investment income (loss) | 1.23 | % | 1.77 | % | 1.39 | % | 1.29 | % | 1.69 | % | |||||||||||
Portfolio turnover rate | 19 | % | 109 | % | 44 | % | 72 | % | 76 | % |
^ | Consolidated Financial Highlights. |
† | Unaudited. |
* | The inception date for the Institutional Shares was December 30, 2016 and for the Open Shares was January 9, 2017. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Amount is less than $0.01 per share. |
(c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
(d) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
88 Semi-Annual Report
LAZARD ENHANCED OPPORTUNITIES PORTFOLIO
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | |||||||||||||||||||||||
each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Institutional Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 9.13 | $ | 8.84 | $ | 8.31 | $ | 8.67 | $ | 9.16 | $ | 8.89 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.11 | # | 0.20 | 0.10 | 0.06 | 0.11 | ^ | 0.05 | |||||||||||||||||
Net realized and unrealized gain (loss) | 0.25 | 0.69 | 0.52 | (0.20 | ) | 0.40 | 0.35 | ||||||||||||||||||
Total from investment operations | 0.36 | 0.89 | 0.62 | (0.14 | ) | 0.51 | 0.40 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.22 | ) | — | (0.10 | ) | (0.17 | ) | (0.08 | ) | |||||||||||||||
Net realized gains | — | (0.38 | ) | (0.09 | ) | (0.12 | ) | (0.83 | ) | (0.05 | ) | ||||||||||||||
Total distributions | — | (0.60 | ) | (0.09 | ) | (0.22 | ) | (1.00 | ) | (0.13 | ) | ||||||||||||||
Net asset value, end of period | $ | 9.49 | $ | 9.13 | $ | 8.84 | $ | 8.31 | $ | 8.67 | $ | 9.16 | |||||||||||||
Total Return (b) | 3.94 | %# | 10.11 | % | 7.44 | % | –1.66 | % | 5.56 | %^ | 4.50 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 20,682 | $ | 19,537 | $ | 9,223 | $ | 16,184 | $ | 15,206 | $ | 14,077 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 1.70 | %# | 2.23 | % | 2.71 | % | 2.36 | % | 2.78 | %^ | 1.79 | % | |||||||||||||
Gross expenses | 3.03 | % | 3.79 | % | 5.52 | % | 3.80 | % | 5.02 | %^ | 3.60 | % | |||||||||||||
Gross expenses, excluding expenses on securities sold short | 2.25 | % | 2.82 | % | 4.06 | % | 2.71 | % | 3.45 | % | 3.51 | % | |||||||||||||
Net investment income (loss) | 2.26 | %# | 2.22 | % | 1.19 | % | 0.73 | % | 1.20 | %^ | 0.57 | % | |||||||||||||
Portfolio turnover rate: | |||||||||||||||||||||||||
Excluding securities sold short | 101 | % | 167 | % | 272 | % | 312 | % | 210 | % | 247 | % | |||||||||||||
Including securities sold short | 137 | % | 241 | % | 354 | % | 409 | % | 310 | % | 340 | % |
The accompanying notes are an integral part of these financial statements.
Semi-Annual Report 89
Selected data for a share of capital stock outstanding throughout | Six Months Ended | Year Ended | |||||||||||||||||||||||
each period | 6/30/21† | 12/31/20 | 12/31/19 | 12/31/18 | 12/31/17 | 12/31/16 | |||||||||||||||||||
Open Shares | |||||||||||||||||||||||||
Net asset value, beginning of period | $ | 9.13 | $ | 8.82 | $ | 8.30 | $ | 8.65 | $ | 9.15 | $ | 8.89 | |||||||||||||
Income (Loss) from investment operations: | |||||||||||||||||||||||||
Net investment income (loss) (a) | 0.08 | # | 0.16 | 0.10 | 0.04 | 0.10 | ^ | 0.04 | |||||||||||||||||
Net realized and unrealized gain (loss) | 0.27 | 0.70 | 0.51 | (0.19 | ) | 0.37 | 0.33 | ||||||||||||||||||
Total from investment operations | 0.35 | 0.86 | 0.61 | (0.15 | ) | 0.47 | 0.37 | ||||||||||||||||||
Less distributions from: | |||||||||||||||||||||||||
Net investment income | — | (0.17 | ) | — | (0.08 | ) | (0.14 | ) | (0.06 | ) | |||||||||||||||
Net realized gains | — | (0.38 | ) | (0.09 | ) | (0.12 | ) | (0.83 | ) | (0.05 | ) | ||||||||||||||
Total distributions | — | (0.55 | ) | (0.09 | ) | (0.20 | ) | (0.97 | ) | (0.11 | ) | ||||||||||||||
Net asset value, end of period | $ | 9.48 | $ | 9.13 | $ | 8.82 | $ | 8.30 | $ | 8.65 | $ | 9.15 | |||||||||||||
Total Return (b) | 3.83 | %# | 9.83 | % | 7.33 | % | –1.80 | % | 5.16 | %^ | 4.13 | % | |||||||||||||
Ratios and Supplemental Data: | |||||||||||||||||||||||||
Net assets, end of period (in thousands) | $ | 538 | $ | 168 | $ | 123 | $ | 105 | $ | 117 | $ | 112 | |||||||||||||
Ratios to average net assets (c): | |||||||||||||||||||||||||
Net expenses | 2.20 | %# | 2.45 | % | 2.83 | % | 2.60 | % | 3.01 | %^ | 2.07 | % | |||||||||||||
Gross expenses | 4.40 | % | 4.94 | % | 13.76 | % | 14.49 | % | 16.40 | %^ | 15.58 | % | |||||||||||||
Gross expenses, excluding expenses on securities sold short | 3.56 | % | 3.99 | % | 12.30 | % | 13.40 | % | 14.85 | % | 15.46 | % | |||||||||||||
Net investment income (loss) | 1.76 | %# | 1.75 | % | 1.10 | % | 0.48 | % | 1.06 | %^ | 0.45 | % | |||||||||||||
Portfolio turnover rate: | |||||||||||||||||||||||||
Excluding securities sold short | 101 | % | 167 | % | 272 | % | 312 | % | 210 | % | 247 | % | |||||||||||||
Including securities sold short | 137 | % | 241 | % | 354 | % | 409 | % | 310 | % | 340 | % |
The accompanying notes are an integral part of these financial statements.
90 Semi-Annual Report
† | Unaudited. |
# | A one-time voluntary reimbursement by the administrator increased the net investment income per share amount of $0.02 and $0.01 per share for Institutional Shares and Open Shares respectively. For Institutional Shares and Open Shares, the one-time voluntary reimbursement by the administrator increased the total return ratio by 0.17% and 0.07%, decreased the net expense ratio by 0.33% and 0.14% and increased the net investment income (loss) ratio by 0.33% and 0.14% respectively. |
^ | A one-time voluntary reimbursement by the administrator increased the net investment income per share amount of $0.04 per share. For Institutional Shares and Open Shares, the one-time voluntary reimbursement by the administrator increased the total return ratio by 0.49%, decreased the gross expense and net expense ratios by 0.44% and increased the net investment income (loss) ratio by 0.44%. |
(a) | Net investment income (loss) has been computed using the average shares method. |
(b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or DST; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Return for a period of less than one year is not annualized. |
(c) | Annualized for a period of less than one year. |
The accompanying notes are an integral part of these financial statements.
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The Lazard Funds, Inc. Notes to Financial Statements
June 30, 2021 (unaudited)
1. Organization
The Lazard Funds, Inc. was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of June 30, 2021, the Fund was comprised of thirty no-load portfolios (each referred to as a “Portfolio”).This report includes only the financial statements of the Lazard Global Dynamic Multi-Asset Portfolio (“Global Dynamic Multi-Asset”), the Lazard Opportunistic Strategies Portfolio (“Opportunistic Strategies”), the Lazard Real Assets Portfolio (“Real Assets”) and the Lazard Enhanced Opportunities Portfolio (“Enhanced Opportunities”). The financial statements of the other twenty-six Portfolios are presented separately.
The Global Dynamic Multi-Asset, Opportunistic Strategies, and Real Assets Portfolios are operated as “diversified” funds, as defined in the 1940 Act. The Lazard Enhanced Opportunities Portfolio is operated as a “non-diversified” fund, as defined in the 1940 Act.
Each Portfolio currently offers Institutional Shares and Open Shares. Each share class is identical except as to minimum investment requirements; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Fund’s prospectus).
Lazard Real Assets Portfolio commenced investment operations and issued Institutional Shares on December 30, 2016. Lazard Real Assets Portfolio, Ltd. (the “Subsidiary”), organized under the laws of the Cayman Islands, was incorporated on October 7, 2016 and commenced operations on December 30, 2016. The Subsidiary acts as an investment vehicle for the Portfolio in order to effect certain investments on behalf of the Portfolio, consistent with its investment objective and policies as described in its prospectus. In addition to investing directly in commodity-linked instruments, the Portfolio may gain exposure to the commodities markets by investing up to 25% of its total assets in the Subsidiary. The financial statements of the Portfolio have been consolidated and include the accounts of both the Portfolio and the Subsidiary. All inter-company balances and transactions have been eliminated in consolidation. As of June 30, 2021, net assets of the Portfolio were
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$33,597,885 of which $7,426,702, or 22.10%, represented the Portfolio’s ownership of all issued shares and voting rights of the Subsidiary.
2. Significant Accounting Policies
The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in accordance with Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:
(a) Valuation of Investments—Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants, are valued at the last reported sales price (for US listed equity securities) or the closing price (for non-US listed equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the NASDAQ National Market System (“NASDAQ”), the NASDAQ Official Closing Price. If there is no available closing price for a non-US listed equity security, the last reported sales price is used. If there are no reported sales of a security on the valuation date, the security is valued at the most recent quoted bid price on such date reported by such principal exchange or market. Futures contracts are valued at the settlement price on the exchange on which the contract is principally traded. Over the counter swap agreements are valued by an independent pricing service and centrally cleared swaps are valued at the last reported sale on the clearing exchange. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s net asset value (“NAV”) per share.
Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by independent pricing services which are based on, among other things, trading in securities with similar characteristics, brokers’ quotations and/or a matrix system which considers such factors as other security prices, yields and maturities.
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Calculation of a Portfolio’s NAV may not take place contemporaneously with the determination of the prices of portfolio assets used in such calculation. Trading on certain non-US securities exchanges or markets, such as those in Europe and Asia, ordinarily may be completed before the close of business on each business day in NewYork (i.e., a day on which the NewYork Stock Exchange (the “NYSE”) is open). In addition, securities trading in a particular non-US country or countries, may not take place on all business days in NewYork and on which the NAV of a Portfolio is calculated.
If a significant event materially affecting the value of securities occurs between the close of the exchange or market on which the security is principally traded and the time when a Portfolio’s NAV is calculated, or when current market quotations otherwise are determined not to be readily available or reliable (including restricted or other illiquid securities such as certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Fund’s Board of Directors (the “Board”).The fair value of non-US securities may be determined with the assistance of an independent pricing service using correlations between the movement of prices of such securities and indices of US securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. Certain non-US securities may trade on days when a Portfolio is not open for business, thus affecting the value of the Portfolio’s assets on days when Portfolio shareholders may not be able to buy or sell Portfolio shares.
The Valuation Committee of the Investment Manager, which is subject to the oversight of the Board, may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio management team also will be considered.
The effect of using fair value pricing is that the NAV of a Portfolio will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead of being deter-
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mined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.
(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income and dividend expenses on short sales are recorded on the ex-dividend date except for certain dividends from non-US securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by a Portfolio. Interest income, if any, is accrued daily. A Portfolio amortizes premiums and accretes discounts on fixed-income securities using the effective yield method.
A Portfolio may be subject to taxes imposed by non-US countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized and/or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income earned or capital gains (realized and/or unrealized) from the applicable Portfolio securities.
(c) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Fund are maintained in US dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.
The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments.
A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Daily fluctua-
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tions in the value of forward currency contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, the Portfolio records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed. Net realized gain (loss) on foreign currency transactions and forward currency contracts represent net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency translations reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.
During the period ended June 30, 2021, the Global Dynamic Multi-Asset, Real Assets and Enhanced Opportunities Portfolios traded in forward currency contracts.
(d) Futures Contracts—For hedging and investment purposes, certain Portfolios may enter into futures contracts in US domestic markets, or exchanges located outside the United States.
Foreign markets may offer advantages such as trading opportunities or arbitrage possibilities not available in the United States. Foreign markets, however, may have greater risk potential than domestic markets. For example, some foreign exchanges are principal markets so that no common clearing facility exists and an investor may look only to the broker for performance of the contract. In addition, any profits a Portfolio might realize in trading could be eliminated by adverse changes in the currency exchange rate, or the Portfolio could incur losses as a result of those changes. Transactions on foreign exchanges may include both commodities which are traded on domestic exchanges and those which are not. Unlike trading on domestic commodity exchanges, trading on foreign commodity exchanges is not regulated by the Commodity Futures Trading Commission.
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Engaging in these transactions involves risk of loss to the Portfolio which could adversely affect the value of the Portfolio’s net assets. Although each of these Portfolios intends to purchase or sell futures contracts only if there is an active market for such contracts, no assurance can be given that a liquid market will exist for any particular contract at any particular time. Many futures exchanges and boards of trade limit the amount of fluctuation permitted in futures contract prices during a single trading day. Once the daily limit has been reached in a particular contract, no trades may be made that day at a price beyond that limit or trading may be suspended for specified periods during the trading day. Futures contract prices could move to the limit for several consecutive trading days with little or no trading, thereby preventing prompt liquidation of futures positions and potentially subjecting the Portfolio to substantial losses.
During the period ended June 30, 2021, the Real Assets Portfolio traded in futures contracts.
(e) Swap Agreements—Swap agreements on equity securities involve commitments to pay interest in exchange for a market linked return based on a notional amount. The counterparty pays out the total return of the equity security or basket of equity securities and, in return, receives a regular stream of payments, based on an agreed-upon interest rate. To the extent the total return of the security or basket of securities underlying the transaction exceeds (or falls short of) the offsetting interest rate obligation, a Portfolio will receive a payment from (or make a payment to) the counterparty.
Commodity-linked swap agreements involve commitments to pay interest in exchange for a commodity-linked return based on a notional amount. To the extent the return of the reference commodity or commodity index or basket of reference commodities or commodity indexes underlying the transaction exceeds (or falls short of) the offsetting interest rate obligation, a Portfolio will receive a payment from (or make a payment to) the counterparty.
Swap agreements generally are valued by an independent pricing service, and the change in value, if any, is recorded as unrealized
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appreciation (depreciation) on swap agreements in a Portfolio’s accompanying Statement of Assets and Liabilities. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreements in a Portfolio’s accompanying Statement of Operations, in addition to any realized gain (loss) recorded upon the termination of swap agreements.
During the period ended June 30, 2021, the Real Assets Portfolios traded in swap agreements.
(f) Options Transactions—Put and call options purchased are accounted for in the same manner as portfolio securities and other assets. Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. When the Portfolio writes an option, the premium received by the Portfolio is recorded as a liability and is subsequently adjusted to the current market value of the option written.
During the period ended June 30, 2021, the Enhanced Opportunities Portfolio traded in options.
(g) Short Sales—A short sale is a transaction in which a Portfolio sells securities it does not own but has borrowed in anticipation of a decline in the market price of the securities. The initial amount of a short sale is recorded as a liability which is marked-to-market daily. Fluctuations in the value of the short liability are recorded as unrealized gains or losses. A Portfolio realizes a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a long position owned). Short sales by a Portfolio involve certain risks and special considerations. Possible losses from short sales differ from losses that could be incurred from a purchase of a security because losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested. The Portfolio may have to pay a fee to borrow the particular security and is liable to the buyer for any dividends or interest payable on securities while those securities are in a short position. These dividends and interest amounts are an expense of the Portfolio. The Portfolio designates collateral consisting of cash, US government securities or
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other liquid assets sufficient to collateralize the market value of short positions.
Proceeds from short sales are generally retained in cash accounts or invested in securities that are cash equivalents. With regard to securities borrowed as of June 30, 2021, pursuant to short sale arrangements, a Portfolio has a right to set off any assets held (including the borrowed securities) or obligations owed to the lender (State Street), in the event of the lender’s default, against any obligations owed by the lender to the Portfolio under any agreement or collateral document, including the collateral value of the Securities Loan Collateral, as that term is defined in the Securities Lending and Services Agreement between the Fund and State Street. At June 30, 2021, the Enhanced Opportunities Portfolio had pledged $27,101,282 of securities as collateral under such arrangements.
For the period ended June 30, 2021, the following Portfolio received proceeds from securities sold short and purchases to cover short positions as follows:
Portfolio | Proceeds from Securities Sold Short | Purchased to Cover Short Positions | |||||||
Opportunistic Strategies | $ | 3,238,622 | $ | — | |||||
Enhanced Opportunities | 31,969,432 | 39,867,990 |
(h) Federal Income Taxes—The Fund’s policy is for each Portfolio to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.
At December 31, 2020, the Global Dynamic Multi-Asset Portfolio had $896,176 unused short-term realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains.
Under current tax law, post-October capital losses or certain late-year ordinary losses, as defined by the Code, within the taxable year may be deferred and treated as occurring on the first day of
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the following tax year. For the tax year ended December 31, 2020, the following Portfolios elected to defer such losses as follows:
Portfolio | Post-October Capital Loss Deferral | Late-Year Ordinary Loss Deferral | |||||||
Opportunistic Strategies | $ | 314,145 | $ | — | |||||
Real Assets | 15,048 | 281,359 |
For federal income tax purposes, the aggregate cost, aggregate gross unrealized appreciation, aggregate gross unrealized depreciation and the net unrealized appreciation (depreciation) were as follows:
Portfolio | Aggregate Cost | Aggregate Gross Unrealized Appreciation | Aggregate Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
Global Dynamic Multi-Asset | $13,972,174 | $ 3,761,251 | $ 235,487 | $ 3,525,764 | ||||||||||||
Opportunistic Strategies | 67,278,193 | 15,883,140 | 133,901 | 15,749,239 | ||||||||||||
Real Assets | 29,150,717 | 5,649,684 | 258,727 | 5,390,957 | ||||||||||||
Enhanced Opportunities | 19,837,784 | 2,137,032 | 1,609,170 | 527,862 |
Management has analyzed the Portfolios tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. Each Portfolio files a US federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
(i) Dividends and Distributions—For each Portfolio, income dividends are normally declared each business day and paid annually, except that the Real Assets Portfolio’s dividends from net investment income (if any), will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be
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taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders, but may be distributed more frequently. Differences in per share distributions, by class, are generally due to differences in class specific expenses.
Net income and realized gains from investments held by the Subsidiary are treated as ordinary income for tax purposes. If a net loss is realized by the Subsidiary in any taxable year, the loss will generally not be available to offset the Real Assets Portfolio’s ordinary income and/or capital gains for that year, or any future tax year.
The Portfolios can, on their 2021 tax return, elect to treat as a distribution of investment company taxable income and net capital gain the portion of redemption proceeds paid to redeeming shareholders that represents the redeeming shareholders’ portion of the Portfolio’s undistributed investment company taxable income and net capital gain. This practice, which involves the use of equalization accounting, will have the effect of reducing the amount of income and gains that the Portfolio would otherwise be required to distribute as dividends to shareholders in order for the Portfolio to avoid federal income and excise taxes. This practice reduces the amount of distributions required to be made to non-redeeming shareholders and defers the recognition of taxable income by such shareholders. However, since the amount of any undistributed income will be reflected in the value of the Portfolio’s shares, the total return on a shareholder’s investment is not affected by the Portfolio’s use of equalization.
Income and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency transactions, wash sales, distributions redesignations, Treasury Inflation-Protected Securities, currency straddles, passive foreign investment company gains and losses, 305(c) deemed dividends, equalization, straddles, certain fixed- income securities, expenses, derivatives and distributions from real estate investment trusts. The book/tax differences relating to shareholder distributions may result in reclassifications among certain capital accounts.
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(j) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc. and Lazard Global Total Return and Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Open Shares. Each Portfolio’s income, expenses (other than class specific expenses) and realized and unrealized gains and losses are allocated proportionally each day between the classes based upon the relative net assets of each class.
(k) Redemption Fee—Until August 15, 2016, the Enhanced Opportunities, the Global Dynamic Multi-Asset and Opportunistic Strategies Portfolios imposed a 1.00% redemption fee (short-term trading fee) on Portfolio shares redeemed less than 30 days after such shares were acquired. The fees were retained by the Portfolios and are included as paid in capital on the Statements of Assets and Liabilities. As of August 15, 2016, redemption fees no longer apply to transactions in Portfolio shares.
(l) Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates.
(m) Net Asset Value—NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. The NAV per share of a class is determined by dividing the
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value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.
3. Investment Management, Administration, Custody, Distribution and Transfer Agency Agreements
The Fund, on behalf of the Portfolios, has entered into a management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager manages the investment operations of each Portfolio and the assets of each Portfolio including the purchase, retention and disposition thereof, in accordance with the Portfolio’s investment objectives, policies, and restrictions, and provides the Portfolios with administrative, operational and compliance assistance services. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:
Portfolio | Annual Rate | ||||
Global Dynamic Multi-Asset | 0.80 | % | |||
Opportunistic Strategies | 1.00 | ||||
Real Assets | 0.65 | ||||
Enhanced Opportunities | 0.95 |
The Investment Manager provides investment management and other services to the Subsidiary. The Investment Manager does not receive separate compensation from the Subsidiary for providing such services. However, the Real Assets Portfolio pays the Investment Manager based on its net assets, which include the assets of the Subsidiary.
The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse each Portfolio until April 30, 2022 if the aggregate direct expenses of a Portfolio, exclusive of taxes, brokerage, interest on borrowings, dividend and interest expenses on securities sold short, fees and expenses of “Acquired Funds” (as defined in Form N-1A), fees and expenses related to filing foreign tax reclaims, and extraordinary expenses, on behalf of the Portfolio, exceed the percentages of the value of the Portfolio’s
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average daily net assets set forth opposite the Portfolio’s name in the table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expenses.
Portfolio | Institutional Shares | Open Shares | |||||||
Global Dynamic Multi-Asset | 0.90 | % | 1.15 | % | |||||
Opportunistic Strategies | 1.02 | 1.27 | |||||||
Real Assets | 0.80 | 1.05 | |||||||
Enhanced Opportunities | 1.25 | 1.50 |
During the period ended June 30, 2021, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:
Institutional Shares | Open Shares | |||||||||
Portfolio | Management Fees Waived | Expenses Reimbursed | Management Fees Waived | Expenses Reimbursed | ||||||
Global Dynamic Multi-Asset | $96,529 | $ — | $ 913 | $1,871 | ||||||
Opportunistic Strategies | 84,081 | — | 756 | 1,981 | ||||||
Real Assets | 92,060 | 22,378 | 264 | 2,314 | ||||||
Enhanced Opportunities | 93,481 | 5,093 | 1,938 | 2,268 |
The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.
State Street serves as the Fund’s custodian and provides the Fund with certain administrative services.
In December 2015, State Street announced that it had identified inconsistencies in the way in which clients were invoiced for custody out-of-pocket expenses from 1998 until 2015. The difference between what was charged and what should have been charged, plus interest, was recorded as a reimbursement when determined in 2016. Pursuant to the expense limitations described above, the Lazard Opportunistic Strategies Portfolio experienced management fee waivers during the year ended December 31, 2016. Accordingly, the reimbursement of out-of-pocket expenses
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resulted in the reduction in the waiver of management fees for certain Portfolios for the year ended December 31, 2016.
The Fund has a distribution agreement with Lazard Asset Management Securities LLC (the “Distributor”), a wholly-owned subsidiary of the Investment Manager, to serve as the distributor for shares of each Portfolio. The Distributor bears, amongst other things, the cost of preparing and distributing materials used by the Distributor in connection with its offering Portfolio shares and other advertising and promotional expenses.
Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net assets of its Open Shares, for certain distribution activities and providing services to holders of the Portfolio’s Open shares. The Distributor may make payments to third parties such as financial institutions, securities dealers and other industry professionals in respect of these services.
DST is the Fund’s transfer and dividend disbursing agent.
4. Directors’ Compensation
Certain Directors of the Fund are officers of the Investment Manager. For 2021, the annual compensation for each Director who is not an affiliated person of the Investment Manager or any of its affiliates was paid by all of the funds in the Lazard Fund Complex is: (1) an annual fee of $237,000, (2) an additional annual retainer of $33,700 to the lead Independent Director, and (3) an additional annual fee of $23,500 to the Audit Committee Chair. The Independent Directors (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund) also may be paid additional fees for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings or incurred in connection with work performed on behalf of the Board. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’
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fees and expenses are allocated among the active portfolios in the Lazard Fund Complex at a rate of $5,000 per active portfolio with the remainder allocated among the active Portfolios on the basis of relative net assets. The Statements of Operations shows the Independent Directors’ compensation and expenses paid by each Portfolio.
5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments and short sales) for the period ended June 30, 2021 were as follows:
Portfolio | Purchases | Sales | ||||||
Global Dynamic Multi-Asset | $ | 15,662,192 | $ | 56,976,399 | ||||
Opportunistic Strategies | 11,375,318 | 11,628,179 | ||||||
Real Assets | 5,665,477 | 3,592,529 | ||||||
Enhanced Opportunities | 33,161,496 | 41,331,421 |
US Treasury Securities | ||||||||
Portfolio | Purchases | Sales | ||||||
Global Dynamic Multi-Asset | $260,814 | $508,421 |
At June 30, 2021, the Investment Manager owned 31.71% of the outstanding shares of the Global Dynamic Multi-Asset Portfolio and 30.67% of the outstanding shares of the Enhanced Opportunities Portfolio.
For the period ended June 30, 2021, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.
6. Line of Credit
The Fund has a $100 million committed line of credit pursuant to an Amended and Restated Loan Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at 1.00% plus the “Applicable Rate,” which is
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the higher of (a) the Federal Funds Rate plus 10 basis points and (b) the Overnight Bank Funding Rate (OBFR) plus 10 basis points, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the period ended June 30, 2021, the following Portfolios had borrowings under the Agreement as follows:
Portfolio | Average Daily Loan Balance | * | Maximum Daily Loan Outstanding | Weighted Average Interest Rate | Number of Days Borrowings were Outstanding | |||||||||||
Global Dynamic Multi-Asset | $1,054,732 | $14,621,225 | 1.20 | % | 17 | |||||||||||
Real Assets | 820,000 | 820,000 | 1.20 | 1 | ||||||||||||
Enhanced Opportunities | 622,143 | 920,000 | 1.20 | 7 |
* | For days borrowings were outstanding. |
Management believes that the fair value of the liabilities under the Agreement is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with the Applicable rate. A Portfolio’s outstanding balance under the Agreement, if any, would be categorized as Level 2.
7. Investment Risks
Not all risks described below apply to all Portfolios, or may not apply to the same degree for one or more Portfolios compared to one or more other Portfolios. In addition, not all risks applicable to an investment in a Portfolio are described below. Please see the current summary prospectus for the relevant Portfolio(s) or a current Portfolio prospectus for further information regarding a Portfolio’s investment strategy and related risks.
(a) Market Risk—A Portfolio may incur losses due to declines in one or more markets in which it invests. These declines may be the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s). To the extent that such developments impact specific industries, market sectors, countries or geographic regions, a Portfolio’s investments in such industries, market sectors, countries and/or
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geographic regions can be expected to be particularly affected, especially if such investments are a significant portion of its investment portfolio. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect a Portfolio. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers worldwide. As a result, local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions or other events could have a significant negative impact on global economic and market conditions. The coronavirus disease 2019 (COVID-19) global pandemic and the aggressive responses taken by many governments or voluntarily imposed by private parties, including closing borders, restricting travel and imposing prolonged quarantines or similar restrictions, as well as the closure of, or operational changes to, many retail and other businesses, has had negative impacts, and in many cases severe negative impacts, on markets worldwide. It is not known how long such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may be expected to impact a Portfolio and its investments.
(b) Convertible Securities Risk—The market value of convertible securities may perform like that of non-convertible fixed income securities; that is, their prices move inversely with changes in interest rates (i.e., as interest rates go up, prices go down). In addition, convertible securities are subject to the risk that the issuer will not make interest or principal payments, or will not make payments on a timely basis. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security also is subject to the same types of market and issuer risks that apply to the underlying common stock.
(c) Fixed-Income and Debt Securities Risk—The market value of a debt security may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the outlook
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for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The debt securities market can be susceptible to increases in volatility and decreases in liquidity. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.
Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity and increased redemptions, and, as a result, a Portfolio may have to liquidate portfolio securities at disadvantageous prices.
A Portfolio’s investments in lower-rated, higher-yielding securities (“junk bonds”) are subject to greater credit risk than its higher rated investments. Credit risk is the risk that the issuer will not make interest or principal payments, or will not make payments on a timely basis. Non-investment grade securities tend to be more volatile, less liquid and are considered speculative. If there is a decline, or perceived decline, in the credit quality of a debt security (or any guarantor of payment on such security), the security’s value could fall, potentially lowering a Portfolio’s share price. The prices of non-investment grade securities, unlike investment grade debt securities, may fluctuate unpredictably and not necessarily inversely with changes in interest rates. The market for these securities may be less liquid and therefore these securities may be harder to value or sell at an acceptable price, especially during times of market volatility or decline.
Some debt securities may give the issuer the option to call, or redeem, the securities before their maturity, and, during a time of declining interest rates, a Portfolio may have to reinvest the proceeds of called or redeemed securities in an investment offering a lower yield (and the Portfolio may not fully benefit from any increase in the value of its portfolio holdings as a result of declining interest rates).
Structured notes are privately negotiated debt instruments where the principal and/or interest is determined by reference to a speci-
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fied asset, market or rate, or the differential performance of two assets or markets. Structured notes can have risks of both debt securities and derivatives transactions.
Adjustable rate securities provide a Portfolio with a certain degree of protection against rises in interest rates, although adjustable rate securities will participate in any declines in interest rates. Certain adjustable rate securities, such as those with interest rates that fluctuate directly or indirectly based on multiples of a stated index, are designed to be highly sensitive to changes in interest rates and can subject the holders thereof to extreme reductions of yield and possibly loss of principal. Certain fixed-income securities may be issued at a discount from their face value (such as zero coupon securities) or purchased at a price less than their stated face amount or at a price less than their issue price plus the portion of “original issue discount” previously accrued thereon, i.e., purchased at a “market discount.” The amount of original issue discount and/or market discount on certain obligations may be significant, and accretion of market discount together with original issue discount will cause a Portfolio to realize income prior to the receipt of cash payments with respect to these securities.
(d) Preferred Securities Risk—There are various risks associated with investing in preferred securities. In addition, unlike common stock, participation in the growth of an issuer may be limited.
● | Credit risk is the risk that a security held by a Portfolio will decline in price or the issuer of the security will fail to make dividend, interest or principal payments when due because the issuer experiences a decline in its financial status. |
● | Interest rate risk is the risk that securities will decline in value because of changes in market interest rates. When market interest rates rise, the market value of such securities generally will fall. |
● | Preferred securities may include provisions that permit the issuer, at its discretion, to defer or omit distributions for a stated period without any adverse consequences to the issuer. |
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● | Preferred securities are generally subordinated to bonds and other debt instruments in an issuer’s capital structure in terms of having priority to corporate income, claims to corporate assets and liquidation payments, and therefore will be subject to greater credit risk than more senior debt instruments. |
● | During periods of declining interest rates, an issuer may be able to exercise an option to call, or redeem its issue at par earlier than the scheduled maturity. If this occurs during a time of lower or declining interest rates, a Portfolio may have to reinvest the proceeds in lower yielding securities (and the Portfolio may not benefit from any increase in the value of its portfolio holdings as a result of declining interest rates). |
● | Certain preferred securities may be substantially less liquid than many other securities, such as common stocks or US government securities. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by a Portfolio or at prices approximating the value at which the Portfolio is carrying the securities on its books. |
(e) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity.
(f) Emerging Market Risk—Emerging market countries generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile. These market conditions may continue or worsen. Significant devaluation of emerging market currencies
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against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.
(g) Foreign Currency Risk—Investments denominated in currencies other than US dollars may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. A Portfolio’s investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies.
(h) Short Position Risk—Short positions may involve substantial risks. If a short position appreciates in value during the period of a Portfolio’s investment, there will be a loss to the Portfolio that could be substantial. Short positions involve more risk than long positions because the maximum sustainable loss on a security purchased is limited to the amount paid for the security plus the transaction costs. However, a Portfolio’s potential loss on a short position is unlimited because, theoretically, there is no limit to the potential price increase of a security. In addition, a Portfolio’s short sales transactions are dependent on counterparties to its securities borrowing transactions and are subject to the risk of default by a counterparty, which could result in a loss of Portfolio assets used as collateral or the loss of monies owed to the Portfolio by a counterparty.
(i) Derivatives and Hedging Risk—Derivatives transactions, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested. Swap agreements; forward currency contracts; over-the-counter options on securities, indexes, currencies and structured notes; and other over-the-counter derivatives transactions are subject to the risks of the creditworthiness of, and default by, the counterparty and consequently may lose all or a portion of their value due solely to the creditworthiness of, or default by, the counterparty. Over-the-counter derivatives frequently may be illiquid and difficult to value. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives. These deriva-
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tives transactions, as well as the exchange-traded futures and options in which a Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of the related reference asset, index or rate. As such, a small investment could have a potentially large impact on a Portfolio’s performance. In fact, many derivatives may be subject to greater risks than those associated with investing directly in the underlying or other reference asset. Derivatives transactions incur costs, either explicitly or implicitly, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of derivatives, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to predict correctly movements in the direction of the relevant reference asset or market and, for hedging activities, correlation of the derivative instruments used with the investments seeking to be hedged. Use of derivatives transactions, even if entered into for hedging purposes, may cause a Portfolio to experience losses greater than if the Portfolio had not engaged in such transactions. The same risks, as applicable, apply to derivative transactions by the Subsidiary. The Securities and Exchange Commission (the “SEC”) recently adopted Rule 18f-4 under the 1940 Act, which will regulate the use of derivatives for certain funds and may require a Portfolio to alter, perhaps materially, its use of derivatives.
(j) Natural Resources Risk—Investments related to natural resources may be affected by numerous factors, including events occurring in nature, inflationary pressures and domestic and international politics. For example, events occurring in nature (such as earthquakes or fires in prime natural resource areas) and political events (such as coups or military confrontations) can affect the overall supply of a natural resource and the value of companies involved in such natural resource. Political risks and other risks to which non-US companies are subject also may affect US companies if they have significant operations or investments in non-US countries. In addition, interest rates, prices of raw materials and other commodities, international economic developments, energy conservation, tax and other government regulations (both US and non-US) may affect the supply of and demand for natural
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resources, which can affect the profitability and value of securities issued by companies in the natural resources category. Securities of companies within specific natural resources sub-categories can perform differently than the overall market. This may be due to changes in such things as the regulatory or competitive environment or to changes in investor perceptions.
(k) Real Estate Investments Risk—A Portfolio’s investments in Real Estate Investments (as defined in the prospectus) could lose money due to the performance of real estate-related securities even if securities markets generally are experiencing positive results. The performance of investments made by a Portfolio may be determined to a great extent by the current status of the real estate industry in general, or by other factors (such as interest rates and the availability of loan capital) that may affect the real estate industry, even if other industries would not be so affected. Consequently, Real Estate Investments could lead to investment results that may be significantly different from investments in other real assets categories or investments in the broader securities markets.
The risks related to investments in Real Estate Investments include, but are not limited to: adverse changes in general economic and local market conditions; adverse developments in employment; changes in supply or demand for similar or competing properties; unfavorable changes in applicable taxes, governmental regulations and interest rates; operating or development expenses; and lack of available financing.
Due to certain special considerations that apply to REITs, investments in REITs may carry additional risks not necessarily present in investments in other securities. REIT securities (including those trading on national exchanges) typically have trading volumes that are less than those of other types of stocks traded on national exchanges, which may affect a Portfolio’s ability to trade or liquidate those securities. An investment in REITs may be adversely affected if the REIT fails to comply with applicable laws and regulations, including failing to qualify as a REIT under the Code. Failure to qualify with any of these requirements could jeopardize a company’s status as a REIT. A Portfolio generally will have no con-
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trol over the operations and policies of a REIT, and the Portfolio generally will have no ability to cause a REIT to take the actions necessary to qualify as a REIT.
(l) Infrastructure Companies Risk—Securities and instruments of infrastructure companies are more susceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Infrastructure companies also may be affected by or subject to, among other factors, regulation by various government authorities, including rate regulation and service interruption due to environmental, operational or other mishaps.
(m) Commodities-Related Investments Risk—Exposure to the commodities markets may subject a Portfolio to greater volatility than other types of investments. The values of commodities and commodity-linked derivative instruments are affected by events that may have less impact on the values of equity and fixed income securities. Investments linked to the prices of commodities are considered speculative. Because the value of a commodity-linked derivative instrument, such as a futures contract on a physical commodity, typically is based upon the price movements of the underlying reference asset, index or rate, the value of these instruments will rise or fall in response to changes in the underlying reference asset, index or rate. Prices of commodities and commodity-linked investments may fluctuate significantly over short periods for a variety of factors, including: changes in supply and demand relationships; weather; agricultural or livestock markets; agricultural or livestock disease or pestilence; trade relationships; fiscal, monetary and exchange control programs; and embargoes, tariffs, terrorism and international economic, political, military and regulatory developments.
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(n) Subsidiary and Tax Status Risk—The Real Assets Portfolio invests in the Subsidiary, which is not registered as an investment company under the 1940 Act. A regulatory change in the US or the Cayman Islands, under which the Portfolio and the Subsidiary, respectively, are organized, that impacts the Subsidiary or how the Portfolio invests in the Subsidiary, such as a change in tax law, could adversely affect the Portfolio. By investing in the Subsidiary, the Portfolio is exposed to the risks associated with the Subsidiary’s investments, which generally include the risks of investing in commodity-related derivative instruments.
Income and gains from commodities or certain commodity-linked derivative instruments do not constitute “qualifying income” to the Real Assets Portfolio for purposes of qualification as a “regulated investment company” for federal income tax purposes. Without such qualification, the Portfolio could be subject to tax. The tax treatment of the Portfolio’s investments in the Subsidiary and commodity-linked derivative instruments could affect whether income derived from such investment is “qualifying income” under the Code, or otherwise affect the character, timing and/or amount of the Portfolio’s taxable income or any gains and distributions made by the Portfolio.
(o) Closed-End Funds and ETFs Risk—Shares of closed-end funds and ETFs in which a Portfolio may invest may trade at prices that vary from their net asset values, sometimes significantly. The shares of closed-end funds and ETFs may trade at prices at, below or above their most recent net asset value. Shares of closed-end funds, in particular, frequently trade at persistent discounts to their net asset value. In addition, the performance of an ETF pursuing a passive index-based strategy may diverge from the performance of the index. A Portfolio’s investments in closed-end funds and ETFs are subject to the risks of the closed-end funds’ and ETFs’ investments, as well as to the general risks of investing in closed-end funds and ETFs, respectively. A Portfolio investing in closed-end funds or ETFs will bear not only the Portfolio’s management fees and operating expenses, but also the Portfolio’s proportional share of the management fees and operating expenses of the closed-end funds and/or ETFs in which the Portfolio invests. A Portfolio may be limited by the 1940 Act in the amount of its
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assets that may be invested in one or more closed-end funds and/or ETFs in the absence of an applicable exemptive order from the SEC on which the Portfolio may rely or an exemption is available. New Rule 12d1-4 under the 1940 Act will allow the Portfolio to acquire the securities of another investment company, including ETFs, in excess of the limitations imposed by Section 12 of the 1940 Act without obtaining an exemptive order from the SEC, subject to certain limitations and conditions. The aforementioned exemptive orders will be rescinded effective January 19, 2022, and by such date the Portfolio will have to comply with the requirements of Rule 12d1-4 in order to rely on its exemptions from the requirements of Section 12.
(p) Government Securities Risk—Not all obligations of the US government, its agencies and instrumentalities are backed by the full faith and credit of the US Treasury. Some obligations are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer. Any guarantee by the US government or its agencies or instrumentalities of a security held by a Portfolio does not apply to the market value of such security or to shares of the Portfolio itself. A security backed by the US Treasury or the full faith and credit of the United States is guaranteed only as to the timely payment of interest and principal when held to maturity.
(q) Cybersecurity Risk—The Portfolios and their service providers are susceptible to operational and information security and related risks of cybersecurity incidents. Cybersecurity attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through “hacking” or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data or causing operational disruption. Cybersecurity incidents affecting the Investment Manager, transfer agent or custodian or other service providers such as financial intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, including by impediments to a Portfolio’s investment trading; the inability of Portfolio shareholders to purchase and redeem Portfolio shares; interference with a Portfolio’s ability to calculate its NAV;
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violations of applicable privacy, data security or other laws; regulatory fines and penalties; reputational damage; reimbursement or other compensation or remediation costs; legal fees; or additional compliance costs. Similar adverse consequences could result from cybersecurity incidents affecting issuers of securities in which a Portfolio invests; counterparties with which a Portfolio engages in transactions; governmental and other regulatory authorities, exchange and other financial market operators; and banks, brokers, dealers, insurance companies and other financial institutions and other parties. There are inherent limitations in any cybersecurity risk management systems or business continuity plans, including the possibility that certain risks have not been identified.
(r) Non-Diversification Risk—For a Portfolio that is classified as “non-diversified” under the 1940 Act, the Portfolio’s net asset value may be more vulnerable to changes in the market value of a single issuer or group of issuers and may be relatively more susceptible to adverse effects from any single corporate, industry, economic, market, political or regulatory occurrence than if the Portfolio’s investments consisted of securities issued by a larger number of issuers.
8. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnification provisions. A Portfolio’s maximum exposure under these arrangements is unknown. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
9. Fair Value Measurements
Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assump-
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tions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The fair value measurement level within the fair value hierarchy for the assets and liabilities of a Portfolio is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below:
● | Level 1 – | unadjusted quoted prices in active markets for identical assets and liabilities |
● | Level 2 – | other significant observable inputs (including unadjusted quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk, etc.) |
● | Level 3 – | significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of assets and liabilities) |
Changes in valuation methodology or inputs may result in transfers into or out of the current assigned level within the hierarchy.
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.
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The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of June 30, 2021:
Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | |||||||||||||
Global Dynamic Multi-Asset Portfolio | |||||||||||||||||
Assets: | |||||||||||||||||
Common Stocks* | |||||||||||||||||
Australia | $ | — | $ | 210,300 | $ | — | $ | 210,300 | |||||||||
Belgium | — | 56,717 | — | 56,717 | |||||||||||||
Canada | 391,339 | — | — | 391,339 | |||||||||||||
China | — | 12,539 | — | 12,539 | |||||||||||||
Denmark | 99,229 | 47,698 | — | 146,927 | |||||||||||||
Finland | — | 17,405 | — | 17,405 | |||||||||||||
France | 93,252 | 146,687 | — | 239,939 | |||||||||||||
Germany | 83,008 | 228,594 | — | 311,602 | |||||||||||||
Hong Kong | 71,213 | 16,379 | — | 87,592 | |||||||||||||
Israel | — | 3,109 | — | 3,109 | |||||||||||||
Italy | — | 46,566 | — | 46,566 | |||||||||||||
Japan | 96,628 | 777,415 | — | 874,043 | |||||||||||||
Macau | 42,627 | — | — | 42,627 | |||||||||||||
Malta | — | 11,180 | — | 11,180 | |||||||||||||
Netherlands | 180,141 | 139,960 | — | 320,101 | |||||||||||||
New Zealand | — | 2,915 | — | 2,915 | |||||||||||||
Norway | — | 21,601 | — | 21,601 | |||||||||||||
Singapore | — | 21,083 | — | 21,083 | |||||||||||||
Spain | 40,020 | 5,362 | — | 45,382 | |||||||||||||
Sweden | 195,094 | 18,980 | — | 214,074 | |||||||||||||
Switzerland | 123,736 | 85,742 | — | 209,478 | |||||||||||||
United Kingdom | 417,459 | 203,177 | — | 620,636 | |||||||||||||
United States | 7,944,787 | — | — | 7,944,787 | |||||||||||||
Corporate Bonds* | — | 1,844,996 | — | 1,844,996 | |||||||||||||
Exchange-Traded Funds | 880,168 | — | — | 880,168 | |||||||||||||
Foreign Government Obligations* | — | 2,058,872 | — | 2,058,872 | |||||||||||||
Supranational Bonds | — | 392,276 | — | 392,276 | |||||||||||||
US Municipal Bonds | — | 224,422 | — | 224,422 | |||||||||||||
Short-Term Investments | 256,444 | — | — | 256,444 | |||||||||||||
Other Financial Instruments† | |||||||||||||||||
Forward Currency Contracts | — | 107,737 | — | 107,737 | |||||||||||||
Total | $ | 10,915,145 | $ | 6,701,712 | $ | — | $ | 17,616,857 | |||||||||
Liabilities: | |||||||||||||||||
Other Financial Instruments† | |||||||||||||||||
Forward Currency Contracts | $ | — | $ | (118,919 | ) | $ | — | $ | (118,919 | ) |
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Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | |||||||||||||
Opportunistic Strategies Portfolio | |||||||||||||||||
Assets: | |||||||||||||||||
Exchange-Traded Funds | $ | 79,334,529 | $ | — | $ | — | $ | 79,334,529 | |||||||||
Short-Term Investments | 6,829,917 | — | — | 6,829,917 | |||||||||||||
Total | $ | 86,164,446 | $ | — | $ | — | $ | 86,164,446 | |||||||||
Liabilities: | |||||||||||||||||
Securities Sold Short Exchange-Traded Fund | $ | (3,137,014 | ) | $ | — | $ | — | $ | (3,137,014 | ) | |||||||
Real Assets Portfolio | |||||||||||||||||
Assets: | |||||||||||||||||
Common Stocks* | |||||||||||||||||
Australia | $ | — | $ | 1,512,310 | $ | — | $ | 1,512,310 | |||||||||
Belgium | — | 82,294 | — | 82,294 | |||||||||||||
Canada | 317,589 | — | — | 317,589 | |||||||||||||
China | — | 663,561 | — | 663,561 | |||||||||||||
France | 1,471 | 1,008,319 | — | 1,009,790 | |||||||||||||
Germany | — | 357,589 | — | 357,589 | |||||||||||||
Hong Kong | — | 732,304 | — | 732,304 | |||||||||||||
Ireland | — | 32,846 | — | 32,846 | |||||||||||||
Israel | — | 28,589 | — | 28,589 | |||||||||||||
Italy | — | 2,292,322 | — | 2,292,322 | |||||||||||||
Japan | — | 897,062 | — | 897,062 | |||||||||||||
Luxembourg | — | 162,796 | — | 162,796 | |||||||||||||
Mexico | 68,065 | — | — | 68,065 | |||||||||||||
Netherlands | — | 57,089 | — | 57,089 | |||||||||||||
Norway | — | 33,545 | — | 33,545 | |||||||||||||
Singapore | — | 283,606 | — | 283,606 | |||||||||||||
South Korea | — | 24,184 | — | 24,184 | |||||||||||||
Spain | — | 745,159 | — | 745,159 | |||||||||||||
Sweden | — | 327,490 | — | 327,490 | |||||||||||||
United Arab Emirates | — | 83,700 | — | 83,700 | |||||||||||||
United Kingdom | — | 2,145,072 | — | 2,145,072 | |||||||||||||
United States | 7,371,486 | — | — | 7,371,486 | |||||||||||||
Exchange-Traded Funds | 1,430,956 | — | — | 1,430,956 | |||||||||||||
Short-Term Investments | 11,100,337 | — | — | 11,100,337 | |||||||||||||
Other Financial Instruments† | |||||||||||||||||
Forward Currency Contracts | — | 114,327 | — | 114,327 | |||||||||||||
Futures Contracts | 140,480 | — | — | 140,480 | |||||||||||||
Total Return Swap Agreements | — | 2,527,142 | — | 2,527,142 | |||||||||||||
Total | $ | 20,430,384 | $ | 14,111,306 | $ | — | $ | 34,541,690 | |||||||||
Liabilities: | |||||||||||||||||
Other Financial Instruments† | |||||||||||||||||
Futures Contracts | $ | (15 | ) | $ | — | $ | — | $ | (15 | ) |
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Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of June 30, 2021 | |||||||||||||
Enhanced Opportunities Portfolio | |||||||||||||||||
Assets: | |||||||||||||||||
Common Stocks* | $ | 918 | $ | 2,857 | $ — | $ | 3,775 | ||||||||||
Convertible Corporate Bonds | — | 27,238,321 | — | 27,238,321 | |||||||||||||
Short-Term Investments | 12,363,628 | — | — | 12,363,628 | |||||||||||||
Purchased Options | 1,296 | — | — | 1,296 | |||||||||||||
Other Financial Instruments† | |||||||||||||||||
Forward Currency Contracts | — | 5,636 | — | 5,636 | |||||||||||||
Total | $ | 12,365,842 | $ | 27,246,814 | $ — | $ | 39,612,656 | ||||||||||
Liabilities: | |||||||||||||||||
Securities Sold Short Common Stocks* | $ | (11,332,931 | ) | $ | (228,913 | ) | $ — | $ | (11,561,844 | ) | |||||||
US Treasury Securities | — | (7,684,536 | ) | — | (7,684,536 | ) | |||||||||||
Other Financial Instruments† | |||||||||||||||||
Written Options | $ | (630 | ) | $ | — | $ — | $ | (630 | ) | ||||||||
Total | $ | (11,333,561 | ) | $ | (7,913,449 | ) | $ — | $ | (19,247,010 | ) |
* | Please refer to Portfolios of Investments and Notes to Portfolios of Investments for portfolio holdings by country and industry. |
† | Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation). |
10. Derivative Instruments
Certain Portfolios may use derivative instruments, including forward currency contracts, futures contracts or swap agreements.
Forward currency contracts may be used for hedging purposes or to seek to increase returns.
A Portfolio may write or purchase a call or put option to seek to realize, through the receipt of premiums or changes in market value, a greater return than would be realized on the underlying securities alone, or to seek to protect the Portfolio from losses.
A Portfolio may enter into futures transactions to hedge against changes in interest rates, securities prices, and/or currency exchange rates, to increase total return, or to otherwise gain access or attain exposure to certain markets or other underliers.
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A Portfolio enters into swap agreements in an attempt to obtain a particular exposure when it is considered desirable to do so, possibly at a lower cost to such Portfolio than if it had invested directly in the asset that yielded the desired exposure.
During the period ended June 30, 2021, the approximate average monthly notional exposure for derivative instruments was as follows:
Enhanced Opportunities Portfolio
Derivative Instruments | Global Dynamic Multi-Asset Portfolio | Real Assets Portfolio | Enhanced Opportunities Portfolio | |||||||||
Forward currency contracts: | ||||||||||||
Average amounts purchased | $ | 13,100,000 | $ | 300,000 | * | $200,000 | # | |||||
Average amounts sold | 12,000,000 | 7,000,000 | 900,000 | |||||||||
Futures contracts: | ||||||||||||
Average notional value of contracts – long | 700,000 | |||||||||||
Total return swap agreements: | ||||||||||||
Average notional value | 7,100,000 |
* | Represents average monthly notional exposure for six months the derivative instrument was open during the period. |
# | Represents average monthly notional exposure for five months the derivative instrument was open during the period. |
The Enhanced Opportunities Portfolio purchased options having an average monthly notional exposure of less than $50,000. The Enhanced Opportunities Portfolio also wrote options having an average monthly notional exposure of less than $50,000.
Global Dynamic Multi-Asset Portfolio
The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of June 30,2021:
Assets – Derivative Financial Instruments | Total | |||||
Forward currency contracts | Unrealized appreciation on forward currency contracts | $107,737 | ||||
Liabilities – Derivative Financial Instruments | Total | |||||
Forward currency contracts | Unrealized appreciation on forward currency contracts | $118,919 |
Semi-Annual Report 123
Real Assets Portfolio
The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of June 30, 2021:
Assets – Derivative Financial Instruments | Commodity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
Forward currency contracts | ||||||||||||
Unrealized appreciation on forward currency contracts | $ | — | $ | 114,327 | $ | 114,327 | ||||||
Swap agreements | ||||||||||||
Unrealized appreciation on swap agreements | 2,527,142 | — | 2,527,142 | |||||||||
Total | $ | 2,527,142 | $ | 114,327 | $ | 2,641,469 | ||||||
Liabilities – Derivative Financial Instruments | Commodity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
Future Contracts | ||||||||||||
Variation margin on open futures contracts (a) | $ | 2,101 | $ | — | $ | 2,101 |
(a) | Net cumulative unrealized appreciation (depreciation) on futures contracts if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss). |
Enhanced Opportunities Portfolio
The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of June 30, 2021:
Assets – Derivative Financial Instruments | Total | |||||
Forward currency contracts | Unrealized appreciation on forward currency contracts | $ | 5,636 | |||
Purchased options | Investment in securities, at fair value | 1,296 | ||||
Total | 6,932 | |||||
Liabilities – Derivative Financial Instruments | Total | |||||
Written options | Written options, at fair value | $ | 630 |
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Global Dynamic Multi-Asset Portfolio
The effect of derivative instruments on the Statement of Operations for the period ended June 30, 2021 was:
Net Realized Gain (Loss) from: | Total | |||
Forward currency contracts | $ | (247,759 | ) | |
Net Change in Unrealized Appreciation (Depreciation) on: | Total | |||
Forward currency contracts | $ | 58,261 |
Real Assets Portfolio
The effect of derivative instruments on the Statement of Operations for the period ended June 30, 2021 was:
Net Realized Gain (Loss) from: | Commodity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
Forward currency contracts | $ | — | $ | (23,273 | ) | $ | (23,273 | ) | ||||
Futures Contracts | 132,967 | — | 132,967 | |||||||||
Swap agreements | (433,062 | ) | — | (433,062 | ) | |||||||
Total | $ | (300,095 | ) | $ | (23,273 | ) | $ | (323,368 | ) | |||
Net Change in Unrealized Appreciation (Depreciation) on: | Commodity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
Forward currency contracts | $ | — | $ | 177,302 | $ | 177,302 | ||||||
Futures Contracts | 134,009 | — | 134,009 | |||||||||
Swap agreements | 2,119,849 | — | 2,119,849 | |||||||||
Total | $ | 2,253,858 | $ | 177,302 | $ | 2,431,160 |
Enhanced Opportunities Portfolio
The effect of derivative instruments on the Statement of Operations for the period ended June 30, 2021 was:
Net Realized Gain (Loss) from: | Equity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
Forward currency contracts | $ | — | $ | 15,163 | $ | 15,163 | ||||||
Purchased options | 10,652 | — | 10,652 | |||||||||
Written options | 7,674 | — | 7,674 | |||||||||
Total | $ | 18,326 | $ | 15,163 | $ | 33,489 |
Semi-Annual Report 125
Net Change in Unrealized Appreciation (Depreciation) on: | Equity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
Forward currency contracts | $ | — | $ | 3,309 | $ | 3,309 | ||||||
Purchased options | (2,159 | ) | — | (2,159 | ) | |||||||
Written options | 135 | — | 135 | |||||||||
Total | $ | (2,024 | ) | $ | 3,309 | $ | 1,285 |
As of June 30, 2021, the Global Dynamic Multi-Asset, Opportunistic Strategies, Real Assets and Enhanced Opportunities Portfolios held derivative instruments that are eligible for offset in the Statements of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through a single payment in the event of default on, or termination of, any one contract.
The required information for the affected Portfolios are presented in the below table, as of June 30, 2021:
Global Dynamic Multi-Asset Portfolio
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | |||||||||||||
Forward Currency Contracts | $ | 107,737 | $ | — | $107,737 | |||||||||||
Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||
Citibank NA | $ | 15,143 | $ | (15,143 | ) | $ | — | $ | — | |||||||||
HSBC Bank USA NA | 40,328 | (40,328 | ) | — | — | |||||||||||||
JPMorgan Chase Bank NA | 45,855 | (27,207 | ) | — | 18,648 | |||||||||||||
Morgan Stanley Capital Services LLC. | 5,505 | — | — | 5,505 | ||||||||||||||
State Street Bank and Trust Co. | 906 | (353 | ) | — | 553 | |||||||||||||
Total | $ | 107,737 | $ | (83,031 | ) | $ | — | $ | 24,706 |
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Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | |||||||||||||
Forward Currency Contracts | $ | 118,919 | $ | — | $ | 118,919 | ||||||||||
Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amounts of Derivative Liabilities | ||||||||||||||
Citibank NA | $ | 23,523 | $ | (15,143 | ) | $ | — | $ | 8,380 | |||||||||
HSBC Bank USA NA | 67,836 | (40,328 | ) | — | 27,508 | |||||||||||||
JPMorgan Chase Bank NA | 27,207 | (27,207 | ) | — | — | |||||||||||||
State Street Bank and Trust Co. | 353 | (353 | ) | — | — | |||||||||||||
Total | $ | 118,919 | $ | (83,031 | ) | $ | — | $ | 35,888 |
Lazard Real Assets Portfolio
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | |||||||||||||
Forward Currency Contracts | $ | 114,327 | $ | — | $ | 114,327 | ||||||||||
Total Return Swap Agreements | 2,527,142 | — | 2,527,142 | |||||||||||||
Total | $ | 2,641,469 | $ | — | $ | 2,641,469 | ||||||||||
Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||
Citibank NA | $ | 22,885 | $ | — | $ | — | $ | 22,885 | ||||||||||
Goldman Sachs International | 2,527,142 | — | — | 2,527,142 | ||||||||||||||
HSBC Bank USA NA | 44,000 | — | — | 44,000 | ||||||||||||||
JPMorgan Chase Bank NA | 19,219 | — | — | 19,219 | ||||||||||||||
State Street Bank and Trust Co. | 28,223 | — | — | 28,223 | ||||||||||||||
Total | $ | 2,641,469 | $ | — | $ | — | $ | 2,641,469 |
Semi-Annual Report 127
Enhanced Opportunities Portfolio
Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | |||||||||||||
Forward Currency Contracts | $ | 5,636 | $ | — | $ | 5,636 | ||||||||||
Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||
Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||
State Street Bank and Trust Co. | $ | 5,636 | $ | — | $ | — | $ | 5,636 |
11. Accounting Pronouncements
On March 12, 2020, the Financial Accounting Standards Board concluded its reference rate reform project with the issuance of Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU No. 2020-04”). ASU No. 2020-04 provides elective temporary financial reporting relief from the effect of certain types of contract modifications due to the planned discontinuation of London Interbank Offered Rate (LIBOR) and other interbank offered based reference rates as of the end of 2021. ASU No. 2020-04 is effective for certain reference rate-related contract modifications that occur during the period March 12, 2020 through December 31, 2022. Management is currently evaluating the impact, if any, of applying ASU No. 2020-04.
12. Subsequent Events
Management has evaluated subsequent events potentially affecting the Portfolios through the issuance of the financial statements and has determined that there were no subsequent events that required adjustment or disclosure.
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The Lazard Funds, Inc. Other Information (unaudited)
Proxy Voting
A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SEC website at https://www.sec.gov. The Fund’s proxy voting record for the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SEC’s website at https://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.
Schedule of Portfolio Holdings
The Fund files the complete schedule of each Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.
Board Consideration of Management Agreement
At meetings of the Board held on May 26, 2021 and June 23, 2021, the Board considered the approval, for an additional annual period, of the Management Agreement between the Fund, on behalf of each of the Portfolios, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel, who advised the Board on relevant legal standards and met with the Independent Directors in executive sessions separate from representatives of the Investment Manager.
Representatives of the Investment Manager discussed with the Board the Investment Manager’s written materials provided in advance of the meetings, including, at the June 23, 2021 meeting, additional information requested by the Independent Directors at the May 26, 2021 meeting.
Services Provided
The Investment Manager’s materials addressed, among other matters, the nature, extent and quality of services that the Investment Manager provides the Fund, including a discussion of the Investment Manager and its clients (of which the Lazard Funds complex of 35 active funds comprised approximately $26 billion of the
Semi-Annual Report 129
approximately $265 billion of total assets under the management of the Investment Manager and its global affiliates as of March 31, 2021).
The Board considered the various services provided by the Investment Manager including the Investment Manager’s research, portfolio management and trading capabilities and oversight of day-to-day operations, including supervision of fund accounting and administration-related services and assistance in meeting legal and regulatory requirements, as well as regular reporting to, and support of, the Board. The Investment Manager’s representatives stated that the Investment Manager believes that the Fund and its shareholders continue to be able to obtain significant benefits as a result of the resources and support of the Investment Manager’s global research, portfolio management, trading, operations, risk management, technology and legal and compliance infrastructure. The Board also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience; the Fund’s distribution channels and the relationships with various intermediaries; marketing and shareholder servicing activities on behalf of the Portfolios; and Portfolio asset flows and the growth or decline in asset levels. The Board accepted the assertion of representatives of the Investment Manager that the Fund benefits from the services and infrastructure provided by the Investment Manager and that such services and infrastructure are greater than those typically provided to a $26 billion fund complex not managed by a large, global firm such as the Investment Manager.
Comparative Fee, Expense Ratio and Performance Information
Strategic Insight Advisory Fee and Expense Ratio Comparisons. The Board reviewed, for each Portfolio, information prepared by Strategic Insight, an independent provider of investment company data, including, among other information, each Portfolio’s contractual advisory fee (i.e., without giving effect to any fee waivers) and net expense ratio (i.e., after giving effect to the Portfolio’s expense limitation agreed to by the Investment Manager) to those of:
130 Semi-Annual Report
● | a group of funds not advised by the Investment Manager selected by Strategic Insight as comparable, for expense comparison purposes, to the Portfolio in terms of relevant criteria as appropriate (the “Expense Peer Group”1); and |
● | the funds within the broad category of funds to which the Portfolio has been assigned by Morningstar, Inc., an independent third party service that ranks and rates funds (“Morningstar”), with certain exclusions as specified by Strategic Insight (the “Expense Category”). |
Representatives of the Investment Manager discussed the results of the Strategic Insight advisory fee and net expense ratio comparisons with the Board, which showed that the advisory fees and net expense ratios of the Portfolios were generally competitive within each Portfolio’s respective Expense Peer Group. The Board considered the comparisons, additional perspectives in information prepared by, and in discussions with, representatives of the Investment Manager and that the Investment Manager continues to voluntarily enter into expense limitation agreements for all of the Portfolios, pursuant to which the Investment Manager was currently waiving advisory fees and/or reimbursing expenses.
Other Accounts Advisory Fee Comparisons. The Board also considered the actual advisory fees paid to the Investment Manager by other accounts of the Investment Manager that are comparable to each Portfolio in terms of investment objectives, strategies and policies, if any (including other investment companies and other pooled investment vehicles, “Other Accounts”). Representatives of the Investment Manager discussed the nature of the Other Accounts and the significant differences in services provided by the Investment Manager to the different types of Other Accounts as compared to the services provided to the Portfolios. The Board considered the relevance of the fee information provided for Other Accounts, in light of the Investment Manager’s discussion of the
1 | The Strategic Insight materials outlined the process for constructing the Expense Peer Groups, as well the Expense Categories, Performance Peer Groups and Performance Categories (all as defined herein). Representatives of the Investment Manager and independent legal counsel had previously discussed with the Board in further detail the methodologies used by Strategic Insight in constructing the Expense Peer Groups, Expense Categories, Performance Peer Groups and Performance Categories, including how the methodologies could affect the results of the comparisons. |
Semi-Annual Report 131
significant differences in services provided, to evaluate the advisory fees of the relevant Portfolios.
Strategic Insight Performance Comparisons. The Board reviewed information prepared by Strategic Insight including, among other information, each Portfolio’s performance for the one-, three-, five- and ten-year periods ended March 31, 2021, as applicable, compared to performance for the same time periods of:
● | a group of funds not advised by the Investment Manager selected by Strategic Insight as comparable, for performance comparison purposes, to the Portfolio in terms of relevant criteria as appropriate (the “Performance Peer Group”); |
● | the funds within the broad category of funds to which the Portfolio has been assigned by Morningstar (the “Performance Category”); and |
● | the Portfolio’s benchmark index. |
When evaluating the performance of each Portfolio, the Board considered Strategic Insight’s performance analysis along with other information provided by the Investment Manager, including additional information regarding performance expectations, as well as additional perspectives in information prepared by, and in discussions with, representatives of the Investment Manager. The Board also received and would continue to receive regular updates and/or additional information from the Investment Manager in respect of Portfolios with relative underperformance or Portfolios which otherwise are not performing in accordance with expectations, as well as any other Portfolios for which the Board requested additional information.
Investment Manager Profitability and Economies of Scale
The Board reviewed information prepared by the Investment Manager for each Portfolio concerning the estimated profitability percentage of the Management Agreement to the Investment Manager and its affiliates for the calendar year ended December 31, 2020 and the Investment Manager’s cost allocation methodology to compute an estimate of each Portfolio’s costs to the Investment
132 Semi-Annual Report
Manager. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage practices and the Portfolios’ brokerage allocation, commission payments and soft dollar commissions and benefits. The Investment Manager’s representatives stated that neither the Investment Manager nor its affiliates receive any other significant benefits from the Investment Manager acting as investment manager to the Portfolios. The representatives of the Investment Manager reminded the Board that the Investment Manager is continuing to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Fund does not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolios’ Open Shares.
The profitability percentages were within ranges determined by relevant court cases not to be so disproportionately large that they bore no reasonable relationship to the services rendered. The Board (1) considered the Investment Manager’s estimated profitability percentage with respect to each Portfolio as part of their evaluation of the Portfolio’s fee under the Management Agreement, considered in relation to the mix of services provided by the Investment Manager (including the nature, extent and quality of such services), and (2) evaluated the profitability percentage in light of the relevant circumstances for each Portfolio. Representatives of the Investment Manager and the Board discussed ways economies of scale could be realized and how they could be shared, including the Investment Manager’s reinvestment of profits back into its business, waiving or reducing Portfolio management fees and/or reimbursing expenses, adding discounts to a Portfolio’s management fee schedule as a Portfolio’s assets increase or by instituting management fees at inception that account for future scale. For each of the Portfolios, it was noted that, since the Portfolio had (1) generally stable or decreased assets from the end of calendar year 2019 to the end of calendar year 2020, and/or (2) not reached a significant size, the potential
Semi-Annual Report 133
that the Investment Manager may have realized any material economies of scale was reduced.
Conclusions and Determinations
At the conclusion of these discussions, the Board expressed the opinion that it had been furnished with such information as may reasonably be necessary to make an informed business decision with respect to evaluation of the renewal of the Management Agreement. Based on its discussions and considerations as described above, with the assistance of independent legal counsel and in the exercise of its business judgment, the Board made the following conclusions and determinations.
● | The Board concluded that the nature, extent and quality of the services provided by the Investment Manager are adequate and appropriate, noting the benefits of the significant services and infrastructure associated with an approximately $265 billion global asset management business. |
● | The Board concluded that each Portfolio’s fee paid to the Investment Manager was appropriate under the circumstances and in light of the factors and the totality of the services provided. |
● | The Board, after considering the information provided and the totality of the relevant circumstances for each Portfolio, concluded that the investment performance of each Portfolio was acceptable or that, for any Portfolios that were not performing in accordance with expectations, the Board accepted that the Investment Manager was taking steps intended to improve performance and the Board would continue to monitor performance. |
● | The Board recognized that economies of scale may be realized, particularly as the assets of the Portfolios increase and determined that it would continue to consider potential material economies of scale. |
In evaluating the Management Agreement, the Board relied on the information described above, in addition to information provided by the Investment Manager throughout the year relating to the operations of the Fund and the investment management and other
134 Semi-Annual Report
services provided under the Management Agreement, including information on the investment performance of the Portfolios in comparison to similar mutual funds and benchmark performance indices over various time periods, as well as information regarding the expected pattern of performance for the Portfolios in different market conditions and/or as compared to the performance of other funds that may be included in a Portfolio’s Performance Peer Group and/or Performance Category; general market outlook as applicable to the Portfolios; and compliance reports. The Board also relied on its previous knowledge, gained through meetings and other interactions with the Investment Manager, of the Investment Manager and the services provided to the Fund by the Investment Manager. The Board considered these conclusions and determinations in their totality and determined to approve the Fund’s Management Agreement for each Portfolio. In deciding whether to vote to approve the Management Agreement for each Portfolio, each Director may have accorded different weights to different factors so that each Director may have had a different basis for his or her decision.
Statement Regarding Liquidity Risk Management Program
The Fund has adopted a liquidity risk management program (the “LRMP”) pursuant to the requirements of Rule 22e-4 under the 1940 Act, which requires registered open-end funds (other than money market funds) to adopt and implement a written liquidity risk management program that is reasonably designed to assess and manage liquidity risk. The rule is designed to promote effective liquidity risk management and reduce liquidity risk—i.e., the risk that a fund could not meet requests to redeem shares issued by the fund without significant dilution of remaining investors’ interests in the fund.
The Board approved the Investment Manager to administer the LRMP (the “Program Administrator”). As Program Administrator, the Investment Manager delegates the day-to-day activities required by the LRMP to a Valuation and Liquidity Committee comprised of various Fund officers and senior personnel of the Investment Manager. In addition, the Fund has contracted with a
Semi-Annual Report 135
third party liquidity assessment vendor to support the classification of Portfolio investments.
Pursuant to the requirements of Rule 22e-4, the Board must review, no less frequently than annually, a written report prepared by the Program Administrator that, among other things, addresses the operation of the LRMP and assesses its adequacy and effectiveness of implementation and any material changes to the LRMP. The Board received a written report in June 2021 (the “Annual Report”). The Annual Report included, among other things, a statement that the Investment Manager, as the Program Administrator, acting primarily through the Valuation and Liquidity Committee, has reviewed the operation of the LRMP and believes that the LRMP is reasonably designed to assess and manage the Portfolios’ liquidity risk and is adequate and effective in its implementation. There were no material compliance matters relating to compliance with Rule 22e-4 identified in the Annual Report.
136 Semi-Annual Report
The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
www.lazardassetmanagement.com
Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Custodian
State Street Bank and Trust Company
One Iron Street
Boston, Massachusetts 02210-1641
Transfer Agent and Dividend Disbursing Agent
DST Asset Manager Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169-0953
Telephone: 617-483-7000
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015
Legal Counsel
Proskauer Rose LLP
Eleven Times Square
New York, New York 10036-8299
www.proskauer.com
Semi-Annual Report 137
Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com | ||
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com. | ||
LZDPS030 |
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Directors during the period covered by this report.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form
N-CSR is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) Not applicable.
(a)(3) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
The Lazard Funds, Inc.
By /s/ Nathan A. Paul
Nathan A. Paul
Chief Executive Officer
Date August 25, 2021
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By /s/ Nathan A. Paul
Nathan A. Paul
Chief Executive Officer
Date August 25, 2021
By /s/ Christopher Snively
Christopher Snively
Chief Financial Officer
Date August 25, 2021