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 811-08071
Lazard Retirement Series, Inc.
(Exact name of registrant as specified in charter)
30 Rockefeller Plaza
New York, New York 10112
(Address of principal executive offices) (Zip code)
Nathan A. Paul, Esq.
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 632-6000
| Date of fiscal year end: | 12/31 |
| | |
| Date of reporting period: | 12/31/15 |
ITEM 1. REPORTS TO STOCKHOLDERS.
Lazard Retirement Series
Annual Report
December 31, 2015
| | US Equity Lazard Retirement US Strategic Equity Portfolio
Lazard Retirement US Small-Mid Cap Equity Portfolio
International Equity Lazard Retirement International Equity Portfolio | | Emerging Markets
Lazard Retirement Emerging Markets Equity Portfolio
Asset Allocation
Lazard Retirement Global Dynamic Multi Asset Portfolio |
Lazard Retirement Series, Inc. Table of Contents
Shares of the Portfolios are currently offered only to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies. Portfolio shares may also be offered to certain qualified pension and retirement plans and accounts permitting accumulation of assets on a tax-deferred basis.
Please consider a Portfolio’s investment objective, risks, charges and expenses carefully before investing. For more complete information about Lazard Retirement Series, Inc. (the “Fund”), you may obtain a prospectus or summary prospectus by calling 800-823-6300, or online, at www.LazardNet.com. Read the prospectus or each Portfolio’s summary prospectus carefully before you invest. The prospectus and summary prospectus contain the investment objective, risks, charges, expenses and other information about Portfolios of the Fund, which is not detailed in this report.
Distributed by Lazard Asset Management Securities LLC.
Lazard Retirement Series, Inc. A Message from Lazard
Dear Shareholder,
In 2015, global equity market volatility increased due to the prospect of a debt default by Greece, uncertain global monetary policy, and oil price instability. In the US, markets rose modestly as the labor market improved and corporate earnings generally exceeded expectations. Japanese equities extended their impressive streak as Abenomics reforms began to pay dividends. In Europe, the economic recovery continued, but investor enthusiasm remained tepid as countries in the region made mixed progress. Meanwhile, emerging markets assets recorded another difficult year due to economic and political challenges and uncertainty about the possibility of interest rate increases in the US.
Interest rates diverged around the world after the US Federal Reserve announced its highly anticipated rate hike on December 16, and the US yield curve flattened as shorter-maturity yields rose slightly more than those with longer maturities. Currencies were volatile in 2015 and the US dollar strengthened against most of its global counterparts. Investor enthusiasm for European bonds with very low or negative yields waned as the effects of European Central Bank bond repurchases began to fade.
At Lazard Asset Management, we remain focused on active management and are committed to responsibly pursuing the Portfolios’ investment objectives. We appreciate your continued confidence in our investment management capabilities, and feel privileged that you have turned to Lazard for your investment needs.
Sincerely,
Lazard Asset Management LLC
Lazard Retirement Series, Inc. Investment Overviews
US Equities
The S&P 500® Index rose 1.4% during 2015. Markets rose as investors continued to weigh the prospects of a self-sustaining economic recovery against the potential effects of an interest rate increase. Corporate earnings generally exceeded lowered expectations during the year, while the labor market continued to improve, with the unemployment rate falling to a pre-recession low of 5.0% in October. The US economy grew unevenly during the year; fourth quarter 2014 GDP growth exceeded expectations, but the economy contracted in the first quarter of 2015, though this was largely attributed to nonrecurring events, and was followed by a strong recovery in the second and third quarters. Volatility increased and markets sold off during the third quarter due to a combination of worries over China, weakness in commodity prices, and fading expectations for higher interest rates. In August, the S&P 500 experienced its first 10% correction since the fourth quarter of 2011, and the CBOE Volatility Index® (VIX) closed at levels last seen during that timeframe. However, US economic indicators were generally strong toward the end of the year, and markets recovered strongly in the fourth quarter, as fears of a “hard landing” in China subsided and investors became more comfortable with the US Federal Reserve’s December interest rate hike, its first in nine years. Oil prices hit lows in December not seen since early 2009, and US oil inventories rose to a record high, hurting shares of companies with exposure to energy and commodities prices.
International Equities
International equities ended 2015 roughly flat in US dollar terms. The year was broadly characterized by weakening global growth, especially in traded goods and in China, offset by monetary policy that remained extremely accommodative, especially in Europe and Japan. In December, with the US Federal Reserve ending quantitative easing (QE) and raising rates for the first time since June 29, 2006, the US dollar strengthened materially, especially against the euro and against emerging market currencies. In this environment, commodity prices saw continuous declines, and the related sectors of energy, materials, utilities, and capital goods came under pressure. Banks also struggled with a lack of growth and an inability to make
decent margins in an environment of extraordinarily low interest rates. The market leaders were the sectors perceived as more stable such as consumer staples, healthcare, technology, and telecoms. Autos and airlines also rose as they benefited from lower oil prices and financing costs. Emerging markets were very weak, especially in US dollar terms, while Japan outperformed as early signs emerged of a greater focus from Japanese companies on profitability and returns.
Emerging Markets Equities
With high economic uncertainty and worries about the possibility of interest rate increases in the US, shares of emerging markets companies experienced another very difficult year in 2015. This resulted in a third consecutive year of significant underperformance compared with developed markets. The MSCI Emerging Markets® Index (the “EM Index”) fell by 14.9%, as measured in US dollar terms. Latin America was by far the worst-performing region, declining by over 30% in 2015. Asian and European emerging markets performed less poorly, all but two countries recorded negative returns. In general, markets performed reasonably well in the first half of the year and then plummeted in the third quarter and, to a lesser degree, in the fourth quarter. Because of the concerns over global economic growth and commodity price declines, economically sensitive shares tended to considerably underperform more defensive areas. Also noteworthy, the US Federal Reserve decided to begin raising short-term US interest rates at the end of the year, the first increase in nearly a decade.
The severe weakness in commodity and, particularly, oil prices throughout the year resulted in large declines in share prices in Colombia, Brazil, and Peru. Brazil’s very public investigation into fraud at the state-controlled oil company Petrobras caused impeachment procedures against President Dilma Roussef, and undermined support for Finance Minister Levy, thereby dramatically pressuring the real. Weakness in the relatively more stable and less oil-dependent economies of Chile and Mexico was considerably less severe.
South African equities were hit by weak commodity prices, as well as President Zuma’s decision, in December to replace Finance Minister Nene with the signifi-
cantly less experienced David van Rooyen. Although he ultimately selected Pravin Gordhan, a previous Finance Minister, it illustrated political miscalculations throughout the year in the asset class. These miscalculations also occurred in Turkey, a market which should have benefited from lower oil prices. However, President Erdogan’s very public comments at the beginning of the year on interest rates undermined the central bank and the currency. Political issues over elections and Kurdish groups further unsettled markets over the course of the year. Greece continued to be highly volatile throughout the year as the newly elected Syriza party negotiated its financial situation with the European Union. As a result of this uncertainty, it was the worst-performing country over the year. Russian shares were relatively good performers following a very weak year in 2014, mainly because of a cease-fire with Ukraine and despite weak oil prices.
China continued to be a critical market in 2015, with China A-shares as well as Hong Kong-listed H-shares, rising significantly through the first half of the year. When MSCI decided not to immediately include China A-shares in the EM Index, Chinese shares tumbled. The authorities tried, somewhat in vain, to stabilize the declines through interest rate and bank reserve requirement declines as well as by raising minimum equity levels for pension plans. The economic slowdown and political disagreements in Indonesia depressed that market, with a particular decline in the rupiah in the third quarter. The collapse in oil prices and scandal concerning Prime Minister Najib Razak over the 1MDB investment fund in Malaysia, had the effect of significantly reducing share prices there. Thai stock prices were pressured by a slowing economy and worsening asset quality in the banking system.
While performance of all sectors was negative for the year, the materials, utilities, telecom services, energy, and financials sectors performed especially poorly. Consumer staples, information technology, and health care were relatively better-performing sectors.
Lazard Retirement US Strategic Equity Portfolio
For the year ended December 31, 2015, the Lazard Retirement US Strategic Equity Portfolio’s Service Shares posted a total return of -5.44%, as compared with the 1.38% return for the S&P 500 Index.
A lack of exposure to the utilities sector contributed to relative performance, as the sector was among the worst performers in the index during the year. Stock selection in the consumer staples sector also helped returns, including shares of packaged food maker Kellogg, which rose after the company reported strong earnings and management issued encouraging guidance. Shares also rose amid speculation that the company might be involved in mergers and acquisitions activity.
In contrast, stock selection in the consumer discretionary sector hurt returns. Shares of media company Viacom fell amid speculation that Dish Network may drop some of Viacom’s channels, as well as concerns about declining advertising revenues. Stock selection in the information technology sector also detracted from performance. Shares of business solutions provider Xerox fell after the company announced lower revenues and guidance associated with the higher-than-anticipated costs for new contracts. We exited our position in Xerox in September in pursuit of better opportunities elsewhere.
Lazard Retirement US Small-Mid Cap Equity Portfolio
For the year ended December 31, 2015, the Lazard Retirement US Small-Mid Cap Equity Portfolio’s Service Shares posted a total return of -2.38%, as compared with the -2.90% return for the Russell 2500® Index.
Stock selection in the information technology sector contributed to performance. Shares of display maker Universal Display rose after the company announced an organic light emitting diode (OLED) technology licensing agreement with LG through 2022, and amid speculation that Apple was filing for an OLED patent related to smartphones. Stock selection in the financials sector also helped performance. Shares of regional bank Great Western rose after the company reported quarterly earnings that exceeded expectations, driven by stronger revenues and lower expenses.
In contrast, stock selection in the materials sector detracted from performance. Shares of chemical maker Tronox fell after the company reported disappointing earnings, as unfavorable pricing hurt results. We exited this position in September, as our investment thesis
was no longer compelling. Stock selection in the health care sector also hurt returns. Shares of medical technology maker Fluidigm fell after the company reported earnings that were below expectations and management made multiple downward revisions to its prior earnings guidance for the year, citing weakness in its BioMark electronic identification business and its C1 single-cell prep instrument. We closed this position in October, as we revised our thesis on the company.
Lazard Retirement International Equity Portfolio
For the year ended December 31, 2015, the Lazard Retirement International Equity Portfolio’s Service Shares posted a total return of 1.75%, as compared with the -0.81% return for the MSCI EAFE® Index (the “EAFE Index”).
The Portfolio strongly outperformed the EAFE Index during the year. Stock selection in the financials sector was additive to returns, as shares of Japanese real estate construction company Daiwa House rose sharply on better-than-expected results, while Finnish financial services business Sampo continued to benefit from its very strong capital discipline. Within the consumer discretionary sector, stock selection also helped returns as auto supplier Valeo gave very encouraging profit guidance. In the consumer staples sector, shares of Belgian brewer Anheuser-Busch InBev rose on the announcement of plans to divest the company’s MillerCoors stake following the proposed acquisition of SABMiller. The investment increases the likelihood that its acquisition of rival SABMiller would be successful, as it reduces regulatory concerns. Within the industrials sector, shares of Swedish lock manufacturer Assa Abloy rose as the CEO expressed his belief that the company can increase organic growth to over 5%. Lastly, a lower-than-benchmark allocation to the underperforming materials sector was additive to relative returns.
In contrast, stock selection in the health care sector hurt the Portfolio’s relative returns as its pharmaceutical holdings, such as Novartis in Switzerland and Bayer in Germany, both underperformed on increased regulatory concerns. Stock selection in the telecom services sector also detracted from relative returns, as shares of Japanese conglomerate SoftBank fell on
concerns about slowing growth at its Chinese e-commerce holding, Alibaba. The stock recovered somewhat in the fourth quarter as Alibaba reported encouraging results. Also in the sector, a holding in Turkcell hurt returns, due to a weak Turkish lira and political uncertainty despite strong company fundamentals. Additionally, the Portfolio suffered from positioning and stock selection in emerging markets, as Brazilian holdings BB Seguridade and Estacio were hurt by adverse economic conditions and by the decline in the Brazilian real. Shares of Piraeus Bank and Hellenic Telecom declined due to the uncertainty of Greece leaving the euro currency bloc. The positions in Piraeus and Hellenic Telecom were sold prior to the implementation of capital controls that closed the Greek banking system for three weeks.
Lazard Retirement Emerging Markets Equity Portfolio
For the year ended December 31, 2015, the Lazard Retirement Emerging Markets Equity Portfolio’s Investor Shares posted a total return of -19.90%, while Service Shares posted a total return of -20.05%, as compared with the -14.92% return for the EM Index.
Shares of NetEase, a Chinese online gaming and internet portal company, experienced continued strength with its hit mobile games. The company also has a strong pipeline of new games. Sberbank, a Russian bank, rose after reporting better-than-expected earnings and positive guidance for credit costs. OTP Bank, a Hungarian bank, benefited from improving returns in Hungary and Bulgaria, as well as news of a reduction of the special banking tax in 2016. KT&G, a South Korean tobacco company, reported better-than-expected results with gains on tobacco sales and higher-than-expected average-selling-prices. Kimberly-Clark de Mexico, a Mexican distributor of sanitary products, posted better-than-expected results driven by improved pricing. In addition, stock selection in the telecom sector helped performance.
In contrast, Banco do Brasil, BB Seguridade, and Cielo, a Brazilian bank, insurance company, and credit card processing company respectively, all experienced share price weakness on the back of macroeconomic concerns, with declines in consensus GDP growth and a weakening real. Punjab National Bank, an Indian
bank, declined on the back of continued pressure on asset quality and lower levels of growth. SK Hynix, a South Korean semiconductor manufacturer, has been hurt by weaker dynamic access random memory pricing due to a sluggish personal computer market. Stock selection in the energy, financials, industrials, and consumer discretionary sectors, and in India hurt performance. In addition, a higher-than-index exposure to Brazil detracted from performance.
Lazard Retirement Global Dynamic Multi Asset Portfolio
For the year ended December 31, 2015, the Lazard Retirement Global Dynamic Multi Asset Portfolio’s Service Shares posted a total return of -0.44%, as compared with the -1.79% return of its blended benchmark, which is a 50/50 blend of the MSCI World® Index and the Barclays Capital Global Aggregate Bond® Index (the “GDMA Index”).
The Portfolio is managed using a combination of certain US and non-US equity and fixed income strategies, which considers a market forecast based on four categories pertinent to allocation decisions among the strategies: Economy, Valuation, Liquidity, and Sentiment.
Changes made to the market forecast during 2015 reflected a consideration of many factors, including monetary policies of central banks around the globe; global macroeconomic data readings (particularly the Purchasing Managers Index, which measures economic activity) in China, the US, the euro zone, and Japan; fiscal policy in developed and emerging markets; geopolitical events and risks; and equity and fixed income valuations, along with other data.
For 2015, stock selection in the financials, consumer staples, and materials sectors and underweight positions in the materials and energy sectors added the most value within the equity allocation, as did stock selection in the UK, US, Australia and Japan. Within fixed income, performance was helped by country allocations to Canada, Australia, and New Zealand; underweight exposure to long maturity bonds in the US and Germany; and an underweight exposure to the euro in favor of the US dollar (implemented also via derivative instruments). In contrast, stock selection in the health care and industrials sectors, stock selection in Canada and overweight exposures to Norway detracted from performance within equities; within fixed income, performance was hurt by an overweight to Spain versus Italy, and modest exposure to the Australian dollar, Canadian dollar, and New Zealand dollar implemented also via derivative instruments.
Notes to Investment Overviews:
Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of a Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s administrator (“State Street”), or Boston Financial Data Services, Inc., the Fund’s transfer and dividend disbursing agent (“BFDS”); without such waiver/reimbursement of expenses, such Portfolio’s returns would have been lower. Performance information does not reflect the fees and charges imposed by participating insurance companies at the separate account level, and such charges will have the effect of reducing performance. Past performance is not indicative, or a guarantee, of future results.
The performance data of the indices and other market data have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. These indices are unmanaged, have no fees or costs and are not available for investment.
The views of the Investment Manager and the securities described in this report are as of December 31, 2015; these views and portfolio holdings may have changed subsequent to this date. Nothing herein should be construed as a recommendation to buy, sell, or hold a particular security. There is no assurance that the securities discussed herein will remain in a Portfolio at the time you receive this report, or that securities sold will not have been repurchased. The specific securities discussed may, in aggregate, represent only a small percentage of a Portfolio’s holdings. It should not be assumed that securities identified and discussed were, or will be, profitable, or that the investment decisions made in the future will be profitable, or equal the investment performance of the securities discussed herein.
The views and opinions expressed are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendations for, any person. There can be no guarantee as to the accuracy of any outlooks for markets, sectors and securities as discussed herein. You should read the Fund’s prospectus or each Portfolio’s summary prospectus for a more detailed discussion of each Portfolio’s investment objective, strategies, risks and fees.
Lazard Retirement Series, Inc. Performance Overviews
Lazard Retirement US Strategic Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Service Shares of Lazard Retirement US Strategic Equity Portfolio and S&P 500® Index*
Average Annual Total Returns*
Years Ended December 31, 2015
| | One
Year | Five
Years | Ten
Years | |
| Service Shares | -5.44% | 10.06% | 5.70% | |
| S&P 500 Index | 1.38% | 12.57% | 7.31% | |
| * | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Performance information does not reflect the fees and charges imposed by participating insurance companies at the separate account level, and such charges will have the effect of reducing performance. |
| | |
| | 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 performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The S&P 500 Index is a market capitalization-weighted index of 500 common stocks, designed to measure performance of the broad domestic economy through changes in the aggregate market value of these stocks, which represent all major industries. The index is unmanaged, has no fees or costs and is not available for investment. |
| | |
| | Before May 1, 2007, the Portfolio was known as Lazard Retirement Equity Portfolio and had a different investment strategy. |
Lazard Retirement US Small-Mid Cap Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Service Shares of Lazard Retirement US Small-Mid Cap Equity Portfolio, Russell 2500® Index and Russell 2000/2500 Linked Index*
Average Annual Total Returns*
Years Ended December 31, 2015
| | One
Year | Five
Years | Ten
Years | |
| Service Shares | -2.38% | 8.00% | 6.62% | |
| Russell 2500 Index | -2.90% | 10.32% | 7.56% | |
| Russell 2000/2500 Linked Index | -2.90% | 10.32% | 7.50% | |
| * | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Performance information does not reflect the fees and charges imposed by participating insurance companies at the separate account level, and such charges will have the effect of reducing performance. |
| | |
| | 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 Portfolio was previously known as Lazard Retirement U.S. Small Cap Equity Portfolio. As of June 1, 2009, the Portfolio changed its name to Lazard Retirement U.S. Small-Mid Cap Equity Portfolio and changed its investment strategy to invest in equity securities of small-mid cap US companies. |
| | |
| | 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 Russell 2500 Index is comprised of the 2,500 smallest US companies included in the Russell 3000® Index (which consists of the 3,000 largest US companies by capitalization). The Russell 2000/2500 Linked Index is an index created by the Portfolio’s Investment Manager, which links the performance of the Russell 2000® Index for all periods through May 31, 2009 and the Russell 2500 Index for all periods thereafter. The Russell 2000 Index is comprised of the 2,000 smallest US companies included in the Russell 3000 Index. The indices are unmanaged, have no fees or costs and are not available for investment. |
Lazard Retirement International Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Service Shares of Lazard Retirement International Equity Portfolio and EAFE Index*
Average Annual Total Returns*
Years Ended December 31, 2015
| | One
Year | Five
Years | Ten
Years | |
| Service Shares | 1.75% | 5.74% | 3.89% | |
| EAFE Index | -0.81% | 3.60% | 3.03% | |
| * | Total returns reflect reinvestment of all dividends and distributions, if any. Performance information does not reflect the fees and charges imposed by participating insurance companies at the separate account level, and such charges will have the effect of reducing performance. |
| | |
| | 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 performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The EAFE Index is a broadly diversified international index comprised of equity securities of approximately 1,000 companies located in developed countries outside the United States. The index is unmanaged, has no fees or costs and is not available for investment. |
Lazard Retirement Emerging Markets Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Service Shares of Lazard Retirement Emerging Markets Equity Portfolio and EM Index*
Average Annual Total Returns*
Periods Ended December 31, 2015
| | Service Shares | Investor Shares |
| | One
Year | Five
Years | Ten
Years | One
Year | Five
Years | Since
Inception† | |
| Retirement Emerging Markets Equity Portfolio** | -20.05% | -5.50% | 3.38% | -19.90% | -5.28% | 2.03% | |
| EM Index | -14.92% | -4.81% | 3.61% | -14.92% | -4.81% | 1.61% | |
| * | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Performance information does not reflect the fees and charges imposed by participating insurance companies at the separate account level, and such charges will have the effect of reducing performance. |
| | |
| | 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 performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The EM Index is comprised of emerging market securities in countries open to non-local investors. The index is unmanaged, has no fees or costs and is not available for investment. |
| | |
| ** | The performance of Service Shares may be greater than or less than the performance of Investor Shares, primarily based on the differences in fees borne by shareholders investing in different classes. |
| | |
† | The inception date for Investor Shares was May 1, 2006. |
Lazard Retirement Global Dynamic Multi Asset Portfolio
Comparison of Changes in Value of $10,000 Investment in the Service Shares of Lazard Retirement Global Dynamic Multi Asset Portfolio, GDMA Index and MSCI World® Index*
Average Annual Total Returns*
Periods Ended December 31, 2015
| | One
Year | Since
Inception† | |
| Service Shares | -0.44% | 7.22% | |
| GDMA Index | -1.79% | 4.25% | |
| MSCI World Index | -0.87% | 9.25% | |
| * | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Performance information does not reflect the fees and charges imposed by participating insurance companies at the separate account level, and such charges will have the effect of reducing performance. |
| | |
| | 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 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 GDMA Index is a 50/50 blend of the MSCI World Index and the Barclays Capital Global Aggregate Bond® Index. The MSCI World Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed markets. The Barclays Capital Global Aggregate Bond 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, with maturities of no less than one year. The indices are unmanaged, have no fees or costs and are not available for investment. |
| | |
| | Before April 30, 2014, the Portfolio was known as Lazard Retirement Multi-Asset Targeted Volatility Portfolio. |
| | |
| † | The inception date for the Portfolio was April 30, 2012. |
Lazard Retirement Series, Inc. Information About Your Portfolio’s Expenses
Expense Example
As a shareholder in a Portfolio of the Fund, you incur ongoing costs, including management fees, distribution and service (12b-1) fees (Service Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2015 through December 31, 2015 and held for the entire period.
Actual Expenses
For each Share class of the Portfolios, the first line of the table below 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 table below 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 shareholders reports of the other mutual funds.
Please note that you also bear fees and charges imposed by participating insurance companies at the separate account level, which are described in the separate prospectuses issued by the insurance companies. Such charges will have the effect of reducing account value.
| Portfolio | | Beginning
Account Value
7/1/15 | | Ending
Account Value
12/31/15 | | Expenses Paid
During Period*
7/1/15 - 12/31/15 | | Annualized Expense
Ratio During Period
7/1/15 - 12/31/15 |
| | | | | | | | | | | | | | | | | |
| US Strategic Equity | | | | | | | | | | | | | | | | |
| Service Shares | | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 950.30 | | | $ | 4.92 | | | | 1.00 | % |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,020.16 | | | $ | 5.09 | | | | 1.00 | % |
| | | | | | | | | | | | | | | | | |
| US Small-Mid Cap Equity | | | | | | | | | | | | | | | | |
| Service Shares | | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 918.90 | | | $ | 6.05 | | | | 1.25 | % |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,018.90 | | | $ | 6.36 | | | | 1.25 | % |
| | | | | | | | | | | | | | | | | |
| International Equity | | | | | | | | | | | | | | | | |
| Service Shares | | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 941.40 | | | $ | 5.58 | | | | 1.14 | % |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,019.46 | | | $ | 5.80 | | | | 1.14 | % |
| | | | | | | | | | | | | | | | | |
| Emerging Markets Equity | | | | | | | | | | | | | | | | |
| Service Shares | | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 807.50 | | | $ | 6.38 | | | | 1.40 | % |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,018.15 | | | $ | 7.12 | | | | 1.40 | % |
| Investor Shares | | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 808.40 | | | $ | 5.29 | | | | 1.16 | % |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,019.36 | | | $ | 5.90 | | | | 1.16 | % |
| | | | | | | | | | | | | | | | | |
| Global Dynamic Multi Asset | | | | | | | | | | | | | | | | |
| Service Shares | | | | | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | | $ | 981.50 | | | $ | 5.24 | | | | 1.05 | % |
| Hypothetical (5% Return Before Expenses) | | $ | 1,000.00 | | | $ | 1,019.91 | | | $ | 5.35 | | | | 1.05 | % |
| * | Expenses are equal to the annualized expense ratio of each Share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
Lazard Retirement Series, Inc. Portfolio Holdings Presented by Sector December 31, 2015
| Sector* | | Lazard
Retirement
US Strategic
Equity Portfolio | | Lazard
Retirement
US Small-Mid Cap
Equity Portfolio | | Lazard
Retirement
International
Equity Portfolio | | Lazard
Retirement
Emerging Markets
Equity Portfolio |
| | | | | | | | | | | | | | | | | | |
| Consumer Discretionary | | | 12.6 | % | | | 14.7 | % | | | 14.0 | % | | | 8.8 | % | |
| Consumer Staples | | | 9.6 | | | | — | | | | 11.5 | | | | 7.9 | | |
| Energy | | | 5.5 | | | | 3.6 | | | | 5.9 | | | | 7.0 | | |
| Financials | | | 16.8 | | | | 29.5 | | | | 26.1 | | | | 27.6 | | |
| Health Care | | | 15.6 | | | | 9.6 | | | | 12.6 | | | | — | | |
| Industrials | | | 10.2 | | | | 18.1 | | | | 10.1 | | | | 5.5 | | |
| Information Technology | | | 23.3 | | | | 14.9 | | | | 3.8 | | | | 24.8 | | |
| Materials | | | 1.7 | | | | 2.4 | | | | 3.2 | | | | 4.3 | | |
| Telecommunication Services | | | — | | | | — | | | | 8.1 | | | | 11.5 | | |
| Utilities | | | — | | | | 3.9 | | | | 1.0 | | | | 0.2 | | |
| Short-Term Investments | | | 4.7 | | | | 3.3 | | | | 3.7 | | | | 2.4 | | |
| Total Investments | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % | |
| Sector* | | Lazard Retirement
Global Dynamic
Multi Asset
Portfolio |
| | | | | | |
| Consumer Discretionary | | | 10.6 | % | |
| Consumer Staples | | | 8.0 | | |
| Energy | | | 4.2 | | |
| Financials | | | 18.8 | | |
| Health Care | | | 9.6 | | |
| Industrials | | | 9.0 | | |
| Information Technology | | | 9.7 | | |
| Materials | | | 2.7 | | |
| Telecommunication Services | | | 4.9 | | |
| Utilities | | | 3.8 | | |
| Municipal | | | 0.8 | | |
| Sovereign Debt | | | 13.2 | | |
| US Treasury Securities | | | 1.1 | | |
| Short-Term Investment | | | 3.6 | | |
| Total Investments | | | 100.0 | % | |
| * | Represents percentage of total investments. |
Lazard Retirement Series, Inc. Portfolios of Investments December 31, 2015
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Lazard Retirement US Strategic Equity Portfolio | | | |
| | | | | | | | | |
| Common Stocks | 95.5% | | | | | | | | |
| | | | | | | | | |
| Agriculture | 0.5% | | | | | | | | |
| Monsanto Co. | | | 615 | | | $ | 60,590 | |
| | | | | | | | | |
| Alcohol & Tobacco | 1.2% | | | | | | | | |
| Molson Coors Brewing Co., Class B | | | 1,420 | | | | 133,366 | |
| | | | | | | | | |
| Automotive | 1.0% | | | | | | | | |
| Delphi Automotive PLC | | | 1,400 | | | | 120,022 | |
| | | | | | | | | |
| Banking | 5.2% | | | | | | | | |
| Bank of America Corp. | | | 22,900 | | | | 385,407 | |
| Wells Fargo & Co. | | | 3,950 | | | | 214,722 | |
| | | | | | | | 600,129 | |
| Commercial Services | 4.5% | | | | | | | | |
| Copart, Inc. (a) | | | 1,700 | | | | 64,617 | |
| Corrections Corp. of America | | | 7,748 | | | | 205,245 | |
| Fidelity National Information Services, Inc. | | | 1,850 | | | | 112,110 | |
| Tyco International PLC | | | 4,190 | | | | 133,619 | |
| | | | | | | | 515,591 | |
| Computer Software & Services | 1.4% | | | | | | | | |
| Microsoft Corp. | | | 2,800 | | | | 155,344 | |
| | | | | | | | | |
| Energy Exploration & Production | 2.2% | | | | | | | | |
| Anadarko Petroleum Corp. | | | 2,135 | | | | 103,718 | |
| Apache Corp. | | | 1,285 | | | | 57,144 | |
| EOG Resources, Inc. | | | 1,305 | | | | 92,381 | |
| | | | | | | | 253,243 | |
| Energy Integrated | 1.6% | | | | | | | | |
| Chevron Corp. | | | 2,035 | | | | 183,069 | |
| | | | | | | | | |
| Energy Services | 1.7% | | | | | | | | |
| Dril-Quip, Inc. (a) | | | 1,530 | | | | 90,622 | |
| Schlumberger, Ltd. | | | 1,525 | | | | 106,369 | |
| | | | | | | | 196,991 | |
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Financial Services | 7.5% | | | | | | | | |
| CBOE Holdings, Inc. | | | 860 | | | $ | 55,814 | |
| Citigroup, Inc. | | | 2,675 | | | | 138,431 | |
| Intercontinental Exchange, Inc. | | | 1,000 | | | | 256,260 | |
| OneMain Holdings, Inc. (a) | | | 3,725 | | | | 154,736 | |
| Visa, Inc., Class A | | | 3,405 | | | | 264,058 | |
| | | | | | | | 869,299 | |
| Food & Beverages | 3.4% | | | | | | | | |
| Kellogg Co. | | | 5,425 | | | | 392,065 | |
| | | | | | | | | |
| Forest & Paper Products | 1.1% | | | | | | | | |
| International Paper Co. | | | 3,470 | | | | 130,819 | |
| | | | | | | | | |
| Health Services | 1.3% | | | | | | | | |
| Aetna, Inc. | | | 1,415 | | | | 152,990 | |
| | | | | | | | | |
| Household & Personal Products | 3.5% | | | | | | | | |
| The Procter & Gamble Co. | | | 5,055 | | | | 401,418 | |
| | | | | | | | | |
| Insurance | 3.9% | | | | | | | | |
| Aon PLC | | | 2,070 | | | | 190,875 | |
| The Hartford Financial Services Group, Inc. | | | 4,165 | | | | 181,011 | |
| Voya Financial, Inc. | | | 2,200 | | | | 81,202 | |
| | | | | | | | 453,088 | |
| Leisure & Entertainment | 7.0% | | | | | | | | |
| Houghton Mifflin Harcourt Co. (a) | | | 6,010 | | | | 130,898 | |
| MSG Networks, Inc. Class A (a) | | | 3,720 | | | | 77,376 | |
| Norwegian Cruise Line Holdings, Ltd. (a) | | | 4,075 | | | | 238,795 | |
| The Madison Square Garden Co. Class A (a) | | | 1,040 | | | | 168,272 | |
| Viacom, Inc., Class B | | | 4,580 | | | | 188,513 | |
| | | | | | | | 803,854 | |
| Manufacturing | 6.4% | | | | | | | | |
| Honeywell International, Inc. | | | 3,360 | | | | 347,995 | |
| Parker Hannifin Corp. | | | 1,170 | | | | 113,466 | |
| Rockwell Automation, Inc. | | | 1,280 | | | | 131,341 | |
| United Technologies Corp. | | | 1,440 | | | | 138,341 | |
| | | | | | | | 731,143 | |
| Media | 4.8% | | | | | | | | |
| Alphabet, Inc.: | | | | | | | | |
| Class A (a) | | | 540 | | | | 420,125 | |
| Class C (a) | | | 168 | | | | 127,492 | |
| | | | | | | | 547,617 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Lazard Retirement US Strategic Equity Portfolio (concluded) | |
| | | | | | | | | |
| Pharmaceutical & Biotechnology | 14.3% | | | | | | | | |
| Baxalta, Inc. | | | 4,285 | | | $ | 167,244 | |
| Eli Lilly & Co. | | | 3,290 | | | | 277,215 | |
| Mallinckrodt PLC (a) | | | 2,705 | | | | 201,874 | |
| Pfizer, Inc. | | | 13,235 | | | | 427,226 | |
| Zoetis, Inc. | | | 12,083 | | | | 579,017 | |
| | | | | | | | 1,652,576 | |
| Real Estate | 0.7% | | | | | | | | |
| Host Hotels & Resorts, Inc. REIT | | | 5,000 | | | | 76,700 | |
| | | | | | | | | |
| Retail | 6.2% | | | | | | | | |
| Advance Auto Parts, Inc. | | | 2,468 | | | | 371,459 | |
| CVS Health Corp. | | | 1,890 | | | | 184,785 | |
| Deckers Outdoor Corp. (a) | | | 1,475 | | | | 69,620 | |
| J.C. Penney Co., Inc. (a) | | | 13,950 | | | | 92,907 | |
| | | | | | | | 718,771 | |
| Semiconductors & Components | 1.2% | | | | | | | | |
| NXP Semiconductors NV (a) | | | 1,670 | | | | 140,697 | |
| | | | | | | | | |
| Technology | 1.5% | | | | | | | | |
| eBay, Inc. (a) | | | 6,350 | | | | 174,498 | |
| | | | | | | | | |
| Technology Hardware | 11.2% | | | | | | | | |
| Apple, Inc. | | | 4,769 | | | | 501,985 | |
| Applied Materials, Inc. | | | 6,950 | | | | 129,757 | |
| Cisco Systems, Inc. | | | 10,880 | | | | 295,446 | |
| Hewlett Packard Enterprise Co. | | | 5,175 | | | | 78,660 | |
| HP, Inc. | | | 5,175 | | | | 61,272 | |
| QUALCOMM, Inc. | | | 1,660 | | | | 82,975 | |
| Teradyne, Inc. | | | 6,955 | | | | 143,760 | |
| | | | | | | | 1,293,855 | |
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Transportation | 2.2% | | | | | | | | |
| American Airlines Group, Inc. | | | 3,475 | | | $ | 147,166 | |
| Union Pacific Corp. | | | 1,350 | | | | 105,570 | |
| | | | | | | | 252,736 | |
Total Common Stocks
(Identified cost $11,105,451) | | | | | | | 11,010,471 | |
| | | | | | | | | |
| Short-Term Investment | 4.8% | | | | | | | | |
State Street Institutional Treasury Money Market Fund
(Identified cost $548,280) | | | 548,280 | | | | 548,280 | |
| | | | | | | | | |
Total Investments | 100.3%
(Identified cost $11,653,731) (b) | | | | | | $ | 11,558,751 | |
| | | | | | | | | |
| Liabilities in Excess of Cash and Other Assets | (0.3)% | | | | (29,784 | ) |
| | | | | | | | | |
| Net Assets | 100.0% | | | | | | $ | 11,528,967 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Lazard Retirement US Small-Mid Cap Equity Portfolio |
| | | | | | | | | |
| Common Stocks | 96.6% | | | | | | | | |
| | | | | | | | | |
| Aerospace & Defense | 1.2% | | | | | | | | |
| B/E Aerospace, Inc. | | | 17,270 | | | $ | 731,730 | |
| | | | | | | | | |
| Automotive | 2.4% | | | | | | | | |
| Gentherm, Inc. (a) | | | 9,630 | | | | 456,462 | |
| Modine Manufacturing Co. (a) | | | 59,850 | | | | 541,643 | |
| Tenneco, Inc. (a) | | | 9,355 | | | | 429,488 | |
| | | | | | | | 1,427,593 | |
| Banking | 9.8% | | | | | | | | |
| East West Bancorp, Inc. | | | 23,215 | | | | 964,815 | |
| Great Western Bancorp, Inc. | | | 30,645 | | | | 889,318 | |
| Home Bancshares, Inc. | | | 26,895 | | | | 1,089,785 | |
| PacWest Bancorp | | | 22,725 | | | | 979,448 | |
| Signature Bank (a) | | | 6,295 | | | | 965,464 | |
| SVB Financial Group (a) | | | 7,870 | | | | 935,743 | |
| | | | | | | | 5,824,573 | |
| Cable Television | 1.1% | | | | | | | | |
| Cable One, Inc. | | | 1,540 | | | | 667,836 | |
| | | | | | | | | |
| Chemicals | 1.6% | | | | | | | | |
| Calgon Carbon Corp. | | | 53,980 | | | | 931,155 | |
| | | | | | | | | |
| Commercial Services | 6.1% | | | | | | | | |
| EVERTEC, Inc. | | | 48,910 | | | | 818,753 | |
| MDC Partners, Inc., Class A | | | 42,175 | | | | 916,041 | |
| Morningstar, Inc. | | | 9,395 | | | | 755,452 | |
| On Assignment, Inc. (a) | | | 9,385 | | | | 421,856 | |
| United Rentals, Inc. (a) | | | 9,885 | | | | 717,058 | |
| | | | | | | | 3,629,160 | |
| Computer Software & Services | 1.6% | | | | | | | | |
| j2 Global, Inc. | | | 11,420 | | | | 940,094 | |
| | | | | | | | | |
| Construction & Engineering | 1.7% | | | | | | | | |
| EMCOR Group, Inc. | | | 8,445 | | | | 405,698 | |
| Quanta Services, Inc. (a) | | | 30,210 | | | | 611,752 | |
| | | | | | | | 1,017,450 | |
| Consumer Products | 1.2% | | | | | | | | |
| Fox Factory Holding Corp. (a) | | | 44,230 | | | | 731,122 | |
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Electric | 1.9% | | | | | | | | |
| CMS Energy Corp. | | | 31,585 | | | $ | 1,139,587 | |
| | | | | | | | | |
| Energy Exploration & Production | 1.6% | | | | | | | | |
| Memorial Resource Development Corp. (a) | | | 60,255 | | | | 973,118 | |
| | | | | | | | | |
| Energy Services | 1.9% | | | | | | | | |
| Dril-Quip, Inc. (a) | | | 10,165 | | | | 602,073 | |
| Tesco Corp. | | | 77,200 | | | | 558,928 | |
| | | | | | | | 1,161,001 | |
| Financial Services | 4.3% | | | | | | | | |
| Air Lease Corp. | | | 20,510 | | | | 686,675 | |
| CBOE Holdings, Inc. | | | 12,655 | | | | 821,310 | |
| OneMain Holdings, Inc. (a) | | | 25,015 | | | | 1,039,123 | |
| | | | | | | | 2,547,108 | |
| Forest & Paper Products | 0.8% | | | | | | | | |
| KapStone Paper and Packaging Corp. | | | 21,895 | | | | 494,608 | |
| | | | | | | | | |
| Gas Utilities | 2.0% | | | | | | | | |
| New Jersey Resources Corp. | | | 36,140 | | | | 1,191,174 | |
| | | | | | | | | |
| Health Services | 3.6% | | | | | | | | |
| Brookdale Senior Living, Inc. (a) | | | 29,340 | | | | 541,616 | |
| Quintiles Transnational Holdings, Inc. (a) | | | 13,580 | | | | 932,403 | |
| Team Health Holdings, Inc. (a) | | | 14,955 | | | | 656,375 | |
| | | | | | | | 2,130,394 | |
| Housing | 2.5% | | | | | | | | |
| Continental Building Products, Inc. (a) | | | 37,870 | | | | 661,210 | |
| PGT, Inc. (a) | | | 70,685 | | | | 805,102 | |
| | | | | | | | 1,466,312 | |
| Insurance | 6.8% | | | | | | | | |
| Arch Capital Group, Ltd. (a) | | | 14,620 | | | | 1,019,745 | |
| Argo Group International Holdings, Ltd. | | | 17,035 | | | | 1,019,374 | |
| Brown & Brown, Inc. | | | 29,100 | | | | 934,110 | |
| Reinsurance Group of America, Inc. | | | 12,210 | | | | 1,044,566 | |
| | | | | | | | 4,017,795 | |
| Leisure & Entertainment | 2.4% | | | | | | | | |
| Bloomin’ Brands, Inc. | | | 46,215 | | | | 780,571 | |
| Scholastic Corp. | | | 17,310 | | | | 667,474 | |
| | | | | | | | 1,448,045 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Lazard Retirement US Small-Mid Cap Equity Portfolio (concluded) | |
| | | | | | | | | |
| Manufacturing | 9.6% | | | | | | | | |
| Altra Industrial Motion Corp. | | | 28,425 | | | $ | 712,899 | |
| FLIR Systems, Inc. | | | 38,995 | | | | 1,094,590 | |
| Generac Holdings, Inc. (a) | | | 23,050 | | | | 686,198 | |
| Littelfuse, Inc. | | | 5,215 | | | | 558,057 | |
| Pitney Bowes, Inc. | | | 44,340 | | | | 915,621 | |
| The Toro Co. | | | 6,590 | | | | 481,531 | |
| TriMas Corp. (a) | | | 42,455 | | | | 791,786 | |
| Woodward, Inc. | | | 9,265 | | | | 460,100 | |
| | | | | | | | 5,700,782 | |
| Medical Products | 1.6% | | | | | | | | |
| Sirona Dental Systems, Inc. (a) | | | 8,645 | | | | 947,233 | |
| | | | | | | | | |
| Pharmaceutical & Biotechnology | 4.4% | | | | | | | | |
| Cellectis SA ADR | | | 19,630 | | | | 609,119 | |
| Mallinckrodt PLC (a) | | | 5,300 | | | | 395,539 | |
| Phibro Animal Health Corp., Class A | | | 23,505 | | | | 708,206 | |
| United Therapeutics Corp. (a) | | | 5,785 | | | | 905,989 | |
| | | | | | | | 2,618,853 | |
| Real Estate | 8.5% | | | | | | | | |
| DCT Industrial Trust, Inc. REIT | | | 25,015 | | | | 934,811 | |
| Extra Space Storage, Inc. REIT | | | 10,705 | | | | 944,288 | |
| Jones Lang LaSalle, Inc. | | | 6,085 | | | | 972,748 | |
| Kilroy Realty Corp. REIT | | | 13,730 | | | | 868,834 | |
| LaSalle Hotel Properties REIT | | | 18,235 | | | | 458,793 | |
| Tanger Factory Outlet Centers, Inc. REIT | | | 27,290 | | | | 892,383 | |
| | | | | | | | 5,071,857 | |
| Retail | 5.9% | | | | | | | | |
| Advance Auto Parts, Inc. | | | 4,215 | | | | 634,400 | |
| Chico’s FAS, Inc. | | | 62,080 | | | | 662,394 | |
| Mattress Firm Holding Corp. (a) | | | 14,450 | | | | 644,903 | |
| Sally Beauty Holdings, Inc. (a) | | | 30,910 | | | | 862,080 | |
| Steven Madden, Ltd. (a) | | | 23,810 | | | | 719,538 | |
| | | | | | | | 3,523,315 | |
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Semiconductors & Components | 3.6% | | | | | | | | |
| M/A-COM Technology Solutions Holdings, Inc. (a) | | | 21,180 | | | $ | 866,050 | |
| Microsemi Corp. (a) | | | 16,725 | | | | 545,068 | |
| Universal Display Corp. (a) | | | 13,170 | | | | 716,975 | |
| | | | | | | | 2,128,093 | |
| Technology | 4.1% | | | | | | | | |
| BroadSoft, Inc. (a) | | | 24,870 | | | | 879,403 | |
| Pegasystems, Inc. | | | 22,915 | | | | 630,162 | |
| Vantiv, Inc., Class A (a) | | | 19,235 | | | | 912,124 | |
| | | | | | | | 2,421,689 | |
| Technology Hardware | 1.6% | | | | | | | | |
| NCR Corp. (a) | | | 37,835 | | | | 925,444 | |
| | | | | | | | | |
| Transportation | 2.8% | | | | | | | | |
| Alaska Air Group, Inc. | | | 11,870 | | | | 955,654 | |
| Echo Global Logistics, Inc. (a) | | | 34,710 | | | | 707,737 | |
| | | | | | | | 1,663,391 | |
Total Common Stocks
(Identified cost $55,165,424) | | | | | | | 57,470,512 | |
| | | | | | | | | |
| Short-Term Investment | 3.3% | | | | | | | | |
State Street Institutional Treasury Money Market Fund
(Identified cost $1,990,008) | | | 1,990,008 | | | | 1,990,008 | |
| | | | | | | | | |
Total Investments | 99.9%
(Identified cost $57,155,432) (b) | | | | | | $ | 59,460,520 | |
| | | | | | | | | |
| Cash and Other Assets in Excess of Liabilities | 0.1% | | | | | | | 38,791 | |
| | | | | | | | | |
| Net Assets | 100.0% | | | | | | $ | 59,499,311 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Lazard Retirement International Equity Portfolio | | |
| | | | | | | | | |
| Common Stocks | 96.1% | | | | | | | | |
| | | | | | | | | |
| Australia | 3.6% | | | | | | | | |
| Ansell, Ltd. | | | 336,231 | | | $ | 5,216,583 | |
| Caltex Australia, Ltd. | | | 449,293 | | | | 12,233,217 | |
| James Hardie Industries PLC | | | 536,696 | | | | 6,770,447 | |
| | | | | | | | 24,220,247 | |
| Austria | 0.6% | | | | | | | | |
| UNIQA Insurance Group AG | | | 506,746 | | | | 4,113,020 | |
| | | | | | | | | |
| Belgium | 4.2% | | | | | | | | |
| Anheuser-Busch InBev SA/NV | | | 172,227 | | | | 21,274,344 | |
| KBC Groep NV | | | 116,581 | | | | 7,289,316 | |
| | | | | | | | 28,563,660 | |
| Brazil | 0.7% | | | | | | | | |
| BB Seguridade Participacoes SA | | | 748,600 | | | | 4,577,992 | |
| | | | | | | | | |
| Canada | 2.7% | | | | | | | | |
| Encana Corp. | | | 794,070 | | | | 4,034,337 | |
| MacDonald Dettwiler & Associates, Ltd. | | | 118,000 | | | | 7,100,296 | |
| National Bank of Canada | | | 258,000 | | | | 7,516,066 | |
| | | | | | | | 18,650,699 | |
| Denmark | 1.1% | | | | | | | | |
| Carlsberg A/S, Class B | | | 84,446 | | | | 7,466,291 | |
| | | | | | | | | |
| Finland | 2.0% | | | | | | | | |
| Sampo Oyj, A Shares | | | 273,871 | | | | 13,881,464 | |
| | | | | | | | | |
| France | 9.1% | | | | | | | | |
| BNP Paribas SA | | | 180,930 | | | | 10,241,361 | |
| Cap Gemini SA | | | 150,767 | | | | 13,950,183 | |
| Iliad SA | | | 26,654 | | | | 6,359,118 | |
| Total SA | | | 145,447 | | | | 6,477,604 | |
| Valeo SA | | | 89,722 | | | | 13,851,715 | |
| Vinci SA | | | 179,718 | | | | 11,525,157 | |
| | | | | | | | 62,405,138 | |
| Germany | 3.4% | | | | | | | | |
| Bayer AG | | | 147,163 | | | | 18,463,260 | |
| RTL Group SA | | | 59,669 | | | | 4,983,798 | |
| | | | | | | | 23,447,058 | |
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Ireland | 1.0% | | | | | | | | |
| Ryanair Holdings PLC Sponsored ADR | | | 79,323 | | | $ | 6,858,267 | |
| | | | | | | | | |
| Israel | 2.7% | | | | | | | | |
| Teva Pharmaceutical Industries, Ltd. Sponsored ADR | | | 276,740 | | | | 18,165,214 | |
| | | | | | | | | |
| Italy | 2.1% | | | | | | | | |
| Atlantia SpA | | | 257,037 | | | | 6,807,967 | |
| Azimut Holding SpA | | | 304,795 | | | | 7,524,535 | |
| | | | | | | | 14,332,502 | |
| Japan | 19.7% | | | | | | | | |
| ABC-Mart, Inc. | | | 119,600 | | | | 6,560,571 | |
| Daiwa House Industry Co., Ltd. | | | 777,200 | | | | 22,282,787 | |
| Don Quijote Holdings Co., Ltd. | | | 408,400 | | | | 14,348,215 | |
| Isuzu Motors, Ltd. | | | 546,500 | | | | 5,881,074 | |
| Japan Tobacco, Inc. | | | 265,400 | | | | 9,744,729 | |
| KDDI Corp. | | | 583,600 | | | | 15,107,634 | |
| Makita Corp. | | | 110,200 | | | | 6,333,118 | |
| Seven & I Holdings Co., Ltd. | | | 280,600 | | | | 12,794,076 | |
| SoftBank Group Corp. | | | 193,000 | | | | 9,726,109 | |
| Sony Corp. | | | 400,300 | | | | 9,806,705 | |
| Sumitomo Mitsui Financial Group, Inc. | | | 399,200 | | | | 15,058,740 | |
| United Arrows, Ltd. | | | 149,000 | | | | 6,422,012 | |
| | | | | | | | 134,065,770 | |
| Netherlands | 2.9% | | | | | | | | |
| Koninklijke KPN NV | | | 1,829,039 | | | | 6,906,507 | |
| Wolters Kluwer NV | | | 390,445 | | | | 13,082,146 | |
| | | | | | | | 19,988,653 | |
| Norway | 1.5% | | | | | | | | |
| Telenor ASA | | | 595,699 | | | | 9,910,193 | |
| | | | | | | | | |
| Philippines | 0.8% | | | | | | | | |
| Alliance Global Group, Inc. | | | 15,718,200 | | | | 5,366,087 | |
| | | | | | | | | |
| Spain | 1.0% | | | | | | | | |
| Red Electrica Corporacion SA | | | 82,656 | | | | 6,889,401 | |
| | | | | | | | | |
| Sweden | 4.0% | | | | | | | | |
| Assa Abloy AB, Class B | | | 686,081 | | | | 14,369,748 | |
| Swedbank AB, A Shares | | | 586,792 | | | | 12,887,249 | |
| | | | | | | | 27,256,997 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Lazard Retirement International Equity Portfolio (concluded) | |
| | | | | | | | | |
| Switzerland | 5.4% | | | | | | | | |
| Credit Suisse Group AG | | | 360,206 | | | $ | 7,785,255 | |
| Novartis AG | | | 340,040 | | | | 29,065,461 | |
| | | | | | | | 36,850,716 | |
| Taiwan | 1.7% | | | | | | | | |
| Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR | | | 515,600 | | | | 11,729,900 | |
| | | | | | | | | |
| Thailand | 0.6% | | | | | | | | |
| Krung Thai Bank Public Co. Ltd. (c) | | | 8,097,000 | | | | 3,757,674 | |
| | | | | | | | | |
| Turkey | 1.1% | | | | | | | | |
| Turkcell Iletisim Hizmetleri AS | | | 2,127,265 | | | | 7,215,320 | |
| | | | | | | | | |
| United Kingdom | 24.2% | | | | | | | | |
| Aon PLC | | | 106,195 | | | | 9,792,241 | |
| BG Group PLC | | | 501,683 | | | | 7,275,061 | |
| BHP Billiton PLC | | | 375,462 | | | | 4,215,362 | |
| British American Tobacco PLC | | | 326,328 | | | | 18,123,946 | |
| Direct Line Insurance Group PLC | | | 1,031,575 | | | | 6,161,903 | |
| Informa PLC | | | 929,110 | | | | 8,389,960 | |
| Lloyds Banking Group PLC | | | 15,144,680 | | | | 16,300,512 | |
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Provident Financial PLC | | | 186,930 | | | $ | 9,258,363 | |
| Prudential PLC | | | 854,534 | | | | 19,131,227 | |
| RELX PLC | | | 686,708 | | | | 12,039,670 | |
| Rexam PLC | | | 1,250,439 | | | | 11,092,143 | |
| Royal Dutch Shell PLC, A Shares | | | 436,950 | | | | 9,816,740 | |
| Shire PLC | | | 210,186 | | | | 14,404,851 | |
| Unilever PLC | | | 211,434 | | | | 9,053,133 | |
| Wolseley PLC | | | 184,709 | | | | 10,040,570 | |
| | | | | | | | 165,095,682 | |
Total Common Stocks
(Identified cost $573,093,972) | | | | | | | 654,807,945 | |
| | | | | | | | | |
| Short-Term Investment | 3.6% | | | | | | | | |
State Street Institutional Treasury Money Market Fund
(Identified cost $24,836,533) | | | 24,836,533 | | | | 24,836,533 | |
| | | | | | | | | |
Total Investments | 99.7%
(Identified cost $597,930,505) (b) | | | | | | $ | 679,644,478 | |
| | | | | | | | | |
| Cash and Other Assets in Excess of Liabilities | 0.3% | | | | | 2,367,295 | |
| | | | | | | | | |
| Net Assets | 100.0% | | | | | | $ | 682,011,773 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Lazard Retirement Emerging Markets Equity Portfolio |
| | | | | | | | | |
| Common Stocks | 96.6% | | | | | | | | |
| | | | | | | | | |
| Argentina | 0.7% | | | | | | | | |
| YPF SA Sponsored ADR | | | 436,134 | | | $ | 6,856,027 | |
| | | | | | | | | |
| Brazil | 8.8% | | | | | | | | |
| Ambev SA ADR | | | 2,937,300 | | | | 13,100,358 | |
| Banco do Brasil SA | | | 3,973,866 | | | | 14,700,838 | |
| BB Seguridade Participacoes SA | | | 2,045,600 | | | | 12,509,671 | |
| CCR SA | | | 3,090,700 | | | | 9,737,195 | |
| CEMIG SA Sponsored ADR | | | 1,045,100 | | | | 1,567,650 | |
| Cielo SA | | | 1,945,412 | | | | 16,465,539 | |
| Localiza Rent a Car SA | | | 751,715 | | | | 4,695,411 | |
| Natura Cosmeticos SA | | | 684,400 | | | | 4,036,102 | |
| Vale SA Sponsored ADR | | | 928,800 | | | | 3,055,752 | |
| Via Varejo SA | | | 1,036,600 | | | | 845,688 | |
| | | | | | | | 80,714,204 | |
| China | 13.9% | | | | | | | | |
| AAC Technologies Holdings, Inc. | | | 985,000 | | | | 6,378,458 | |
| Baidu, Inc. Sponsored ADR (a) | | | 171,400 | | | | 32,401,456 | |
| China Construction Bank Corp., Class H | | | 49,998,390 | | | | 33,942,636 | |
| China Shenhua Energy Co., Ltd., Class H | | | 4,346,829 | | | | 6,764,172 | |
| CNOOC, Ltd. | | | 10,417,000 | | | | 10,707,264 | |
| NetEase, Inc. ADR | | | 169,200 | | | | 30,665,808 | |
| Weichai Power Co., Ltd., Class H | | | 5,204,800 | | | | 5,719,324 | |
| | | | | | | | 126,579,118 | |
| Egypt | 1.2% | | | | | | | | |
| Commercial International Bank Egypt SAE GDR | | | 2,553,778 | | | | 10,984,471 | |
| | | | | | | | | |
| Hong Kong | 3.5% | | | | | | | | |
| China Mobile, Ltd. Sponsored ADR | | | 487,149 | | | | 27,441,103 | |
| Huabao International Holdings, Ltd. | | | 11,717,000 | | | | 4,257,645 | |
| | | | | | | | 31,698,748 | |
| Hungary | 1.5% | | | | | | | | |
| OTP Bank Nyrt. | | | 676,257 | | | | 13,945,100 | |
| Description | | Shares | | | Value | |
| | | | | | | | | |
| India | 10.6% | | | | | | | | |
| Axis Bank, Ltd. | | | 2,682,592 | | | $ | 18,123,392 | |
| Bajaj Auto, Ltd. | | | 238,164 | | | | 9,107,527 | |
| Bharat Heavy Electricals, Ltd. | | | 2,412,310 | | | | 6,142,620 | |
| HCL Technologies, Ltd. | | | 984,336 | | | | 12,738,111 | |
| Hero MotoCorp, Ltd. | | | 333,580 | | | | 13,506,660 | |
| Punjab National Bank | | | 5,653,983 | | | | 9,845,785 | |
| Tata Consultancy Services, Ltd. | | | 760,032 | | | | 27,815,008 | |
| | | | | | | | 97,279,103 | |
| Indonesia | 7.2% | | | | | | | | |
| PT Astra International Tbk | | | 23,156,900 | | | | 9,951,540 | |
| PT Bank Mandiri (Persero) Tbk | | | 21,178,829 | | | | 14,059,098 | |
| PT Semen Indonesia (Persero) Tbk | | | 9,946,900 | | | | 8,113,579 | |
PT Telekomunikasi Indonesia
(Persero) Tbk Sponsored ADR | | | 590,600 | | | | 26,222,640 | |
| PT United Tractors Tbk | | | 5,870,540 | | | | 7,133,729 | |
| | | | | | | | 65,480,586 | |
| Macau | 0.6% | | | | | | | | |
| Wynn Macau, Ltd. | | | 4,664,400 | | | | 5,406,330 | |
| | | | | | | | | |
| Malaysia | 0.7% | | | | | | | | |
| British American Tobacco Malaysia Berhad | | | 470,400 | | | | 6,139,749 | |
| | | | | | | | | |
| Mexico | 2.6% | | | | | | | | |
| America Movil SAB de CV, Class L Sponsored ADR | | | 417,700 | | | | 5,872,862 | |
| Grupo Mexico SAB de CV, Series B | | | 3,959,397 | | | | 8,452,013 | |
| Kimberly-Clark de Mexico SAB de CV, Series A | | | 4,110,662 | | | | 9,590,630 | |
| | | | | | | | 23,915,505 | |
| Pakistan | 1.9% | | | | | | | | |
| Habib Bank, Ltd. | | | 4,195,600 | | | | 8,009,163 | |
| Oil & Gas Development Co., Ltd. | | | 3,155,900 | | | | 3,530,797 | |
| Pakistan Petroleum, Ltd. | | | 4,950,902 | | | | 5,734,000 | |
| | | | | | | | 17,273,960 | |
| Philippines | 1.5% | | | | | | | | |
| Philippine Long Distance Telephone Co. Sponsored ADR | | | 312,500 | | | | 13,359,375 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Lazard Retirement Emerging Markets Equity Portfolio (concluded) | |
| | | | | | | | | |
| Russia | 8.2% | | | | | | | | |
| ALROSA PAO (a) | | | 6,467,981 | | | $ | 4,966,168 | |
| Gazprom PAO Sponsored ADR | | | 3,327,747 | | | | 12,331,715 | |
| Lukoil PJSC Sponsored ADR | | | 407,409 | | | | 13,147,350 | |
| Magnit PJSC Sponsored GDR | | | 50,967 | | | | 2,039,297 | |
| Magnit PJSC Sponsored GDR (c), (d) | | | 108,375 | | | | 4,358,842 | |
| MegaFon OAO GDR | | | 69,501 | | | | 808,284 | |
| MegaFon OAO GDR (c), (d) | | | 421,946 | | | | 4,915,671 | |
| Mobile TeleSystems PJSC Sponsored ADR | | | 1,346,420 | | | | 8,320,876 | |
| Sberbank of Russia PJSC (a) | | | 17,075,756 | | | | 23,749,337 | |
| | | | | | | | 74,637,540 | |
| South Africa | 7.1% | | | | | | | | |
| Imperial Holdings, Ltd. | | | 599,746 | | | | 4,587,441 | |
| Nedbank Group, Ltd. | | | 517,526 | | | | 6,295,292 | |
| PPC, Ltd. | | | 3,173,757 | | | | 3,158,028 | |
| Sanlam, Ltd. | | | 1,645,496 | | | | 6,383,915 | |
| Shoprite Holdings, Ltd. | | | 1,262,318 | | | | 11,667,673 | |
| Standard Bank Group, Ltd. | | | 939,214 | | | | 6,863,533 | |
| The Bidvest Group, Ltd. | | | 388,159 | | | | 8,230,853 | |
| Vodacom Group, Ltd. | | | 790,391 | | | | 7,779,394 | |
| Woolworths Holdings, Ltd. | | | 1,542,561 | | | | 9,968,164 | |
| | | | | | | | 64,934,293 | |
| South Korea | 13.7% | | | | | | | | |
| Coway Co., Ltd. | | | 145,360 | | | | 10,368,034 | |
| Hanwha Life Insurance Co., Ltd. | | | 1,878,696 | | | | 11,780,823 | |
| Hyundai Mobis Co., Ltd. | | | 77,433 | | | | 16,160,314 | |
| KB Financial Group, Inc. | | | 465,889 | | | | 13,089,647 | |
| KT&G Corp. | | | 123,322 | | | | 10,944,114 | |
| Samsung Electronics Co., Ltd. | | | 27,478 | | | | 29,341,877 | |
| Shinhan Financial Group Co., Ltd. | | | 577,422 | | | | 19,434,515 | |
| SK Hynix, Inc. | | | 542,720 | | | | 14,011,241 | |
| | | | | | | | 125,130,565 | |
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Taiwan | 6.0% | | | | | | | | |
| Hon Hai Precision Industry Co., Ltd. | | | 4,080,138 | | | $ | 9,979,260 | |
| Taiwan Semiconductor Manufacturing Co., Ltd. | | | 10,298,642 | | | | 44,439,425 | |
| | | | | | | | 54,418,685 | |
| Thailand | 2.8% | | | | | | | | |
| CP All Public Co. Ltd. (c) | | | 8,339,400 | | | | 9,096,052 | |
| Kasikornbank Public Co. Ltd. | | | 1,237,900 | | | | 5,117,744 | |
| PTT Exploration & Production Public Co. Ltd. (c) | | | 2,638,935 | | | | 4,198,389 | |
| The Siam Cement Public Co. Ltd. | | | 530,900 | | | | 6,766,733 | |
| | | | | | | | 25,178,918 | |
| Turkey | 4.1% | | | | | | | | |
| Akbank TAS | | | 4,642,292 | | | | 10,663,041 | |
| KOC Holding AS | | | 2,133,938 | | | | 7,996,448 | |
| Turkcell Iletisim Hizmetleri AS | | | 2,747,145 | | | | 9,317,847 | |
| Turkiye Is Bankasi AS, C Shares | | | 5,922,095 | | | | 9,339,404 | |
| | | | | | | | 37,316,740 | |
Total Common Stocks
(Identified cost $1,127,901,383) | | | | | | | 881,249,017 | |
| | | | | | | | | |
| Short-Term Investment | 2.4% | | | | | | | | |
State Street Institutional Treasury Money Market Fund
(Identified cost $22,040,801) | | | 22,040,801 | | | | 22,040,801 | |
| | | | | | | | | |
Total Investments | 99.0%
(Identified cost $1,149,942,184) (b) | | | | | | $ | 903,289,818 | |
| | | | | | | | | |
| Cash and Other Assets in Excess of Liabilities | 1.0% | | | | | | | 9,563,451 | |
| | | | | | | | | |
| Net Assets | 100.0% | | | | | | $ | 912,853,269 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Lazard Retirement Global Dynamic Multi Asset Portfolio |
| | | | | | | | | |
| Common Stocks | 70.7% | | | | | | | | |
| | | | | | | | | |
| Australia | 2.8% | | | | | | | | |
| Amcor, Ltd. | | | 23,180 | | | $ | 225,519 | |
| Aristocrat Leisure, Ltd. | | | 22,735 | | | | 168,020 | |
| Blackmores, Ltd. | | | 3,675 | | | | 579,919 | |
| carsales.com, Ltd. | | | 12,509 | | | | 106,090 | |
| CSL, Ltd. | | | 19,050 | | | | 1,452,430 | |
| Evolution Mining, Ltd. | | | 659,753 | | | | 670,277 | |
| iSentia Group, Ltd. | | | 37,906 | | | | 132,955 | |
| Magellan Financial Group, Ltd. | | | 35,218 | | | | 690,873 | |
| Qantas Airways, Ltd. | | | 188,713 | | | | 559,628 | |
| Regis Resources, Ltd. | | | 71,559 | | | | 121,262 | |
| Sandfire Resources NL | | | 91,564 | | | | 369,819 | |
| Telstra Corp., Ltd. | | | 191,902 | | | | 778,648 | |
| Wesfarmers, Ltd. | | | 3,580 | | | | 107,711 | |
| Westfield Corp. REIT | | | 29,094 | | | | 200,152 | |
| | | | | | | | 6,163,303 | |
| Austria | 0.2% | | | | | | | | |
| Erste Group Bank AG (a) | | | 11,335 | | | | 354,254 | |
| IMMOFINANZ AG (a) | | | 28,928 | | | | 65,824 | |
| | | | | | | | 420,078 | |
| Belgium | 0.7% | | | | | | | | |
| Anheuser-Busch InBev SA/NV Sponsored ADR | | | 10,440 | | | | 1,305,000 | |
| KBC Groep NV | | | 1,907 | | | | 119,237 | |
| Telenet Group Holding NV (a) | | | 3,638 | | | | 196,062 | |
| | | | | | | | 1,620,299 | |
| Bermuda | 0.8% | | | | | | | | |
| Everest Re Group, Ltd. | | | 6,058 | | | | 1,109,159 | |
| PartnerRe, Ltd. | | | 1,292 | | | | 180,544 | |
| Validus Holdings, Ltd. | | | 8,423 | | | | 389,901 | |
| | | | | | | | 1,679,604 | |
| Canada | 2.8% | | | | | | | | |
| Agnico-Eagle Mines, Ltd. | | | 3,517 | | | | 92,443 | |
| Canadian National Railway Co. | | | 15,017 | | | | 839,463 | |
| CI Financial Corp. | | | 12,562 | | | | 277,804 | |
| Cineplex, Inc. | | | 5,142 | | | | 176,702 | |
| Cogeco Cable, Inc. | | | 2,938 | | | | 131,156 | |
| Colliers International Group, Inc. | | | 2,568 | | | | 114,564 | |
| Constellation Software, Inc. | | | 237 | | | | 98,808 | |
| Dollarama, Inc. | | | 12,484 | | | | 721,234 | |
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Husky Energy, Inc. | | | 52,771 | | | $ | 545,749 | |
| Imperial Oil, Ltd. | | | 2,383 | | | | 77,636 | |
| Intact Financial Corp. | | | 7,734 | | | | 495,665 | |
| Magna International, Inc. | | | 11,202 | | | | 454,330 | |
| Metro, Inc. | | | 6,704 | | | | 187,695 | |
| Royal Bank of Canada | | | 21,147 | | | | 1,133,230 | |
| Suncor Energy, Inc. | | | 3,011 | | | | 77,728 | |
| Tourmaline Oil Corp. (a) | | | 5,865 | | | | 94,733 | |
| Transcontinental, Inc. Class A | | | 20,245 | | | | 252,532 | |
| Uni-Select, Inc. | | | 8,232 | | | | 407,584 | |
| | | | | | | | 6,179,056 | |
| China | 0.1% | | | | | | | | |
| Yangzijiang Shipbuilding Holdings, Ltd. | | | 179,100 | | | | 138,285 | |
| | | | | | | | | |
| Denmark | 0.5% | | | | | | | | |
| Coloplast A/S, Class B | | | 1,402 | | | | 113,165 | |
| Novo Nordisk A/S Sponsored ADR | | | 10,595 | | | | 615,357 | |
| Novo Nordisk A/S, Class B | | | 8,239 | | | | 473,581 | |
| | | | | | | | 1,202,103 | |
| Finland | 0.8% | | | | | | | | |
| Elisa Oyj | | | 3,610 | | | | 135,765 | |
| Kone Oyj, Class B | | | 12,866 | | | | 540,956 | |
| Sampo Oyj, A Shares ADR | | | 42,440 | | | | 1,073,520 | |
| | | | | | | | 1,750,241 | |
| France | 1.0% | | | | | | | | |
| Airbus Group SE | | | 20,175 | | | | 1,354,619 | |
| BNP Paribas SA | | | 3,937 | | | | 222,850 | |
| Electricite de France SA | | | 8,588 | | | | 126,161 | |
| Engie SA | | | 4,543 | | | | 80,401 | |
| Societe Generale SA | | | 4,847 | | | | 223,580 | |
| Sopra Steria Group | | | 782 | | | | 91,848 | |
| Total SA | | | 5,522 | | | | 245,927 | |
| | | | | | | | 2,345,386 | |
| Germany | 1.2% | | | | | | | | |
| Bayer AG | | | 909 | | | | 114,044 | |
| Continental AG Sponsored ADR | | | 18,200 | | | | 875,511 | |
| Daimler AG | | | 1,584 | | | | 132,217 | |
| Muenchener Rueckversicherungs AG | | | 1,185 | | | | 237,325 | |
| ProSiebenSat.1 Media SE | | | 4,556 | | | | 230,461 | |
| Stroeer SE | | | 1,932 | | | | 121,104 | |
| Suedzucker AG | | | 5,968 | | | | 118,105 | |
| Symrise AG ADR | | | 46,570 | | | | 767,241 | |
| | | | | | | | 2,596,008 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Lazard Retirement Global Dynamic Multi Asset Portfolio (continued) |
| | | | | | | | | |
| Hong Kong | 1.6% | | | | | | | | |
| CLP Holdings, Ltd. | | | 31,500 | | | $ | 267,729 | |
| Henderson Land Development Co., Ltd. | | | 48,000 | | | | 292,197 | |
| HK Electric Investments & HK Electric Investments, Ltd. | | | 199,000 | | | | 166,708 | |
| Hongkong Land Holdings, Ltd. | | | 15,300 | | | | 106,696 | |
| Link REIT | | | 229,000 | | | | 1,370,587 | |
| PCCW, Ltd. | | | 379,000 | | | | 222,022 | |
| Swire Pacific, Ltd., Class A | | | 13,500 | | | | 151,599 | |
| The Wharf Holdings, Ltd. | | | 119,000 | | | | 659,135 | |
| Wheelock & Co., Ltd. | | | 87,000 | | | | 366,692 | |
| | | | | | | | 3,603,365 | |
| Ireland | 0.5% | | | | | | | | |
| Accenture PLC, Class A | | | 1,089 | | | | 113,801 | |
| Bank of Ireland Sponsored ADR (a) | | | 19,445 | | | | 286,425 | |
| ICON PLC (a) | | | 4,301 | | | | 334,188 | |
| Paddy Power PLC | | | 1,365 | | | | 182,613 | |
| Ryanair Holdings PLC Sponsored ADR | | | 1,542 | | | | 133,321 | |
| | | | | | | | 1,050,348 | |
| Israel | 0.4% | | | | | | | | |
| Bank Hapoalim BM | | | 14,198 | | | | 73,328 | |
| Bank Leumi Le-Israel BM (a) | | | 25,671 | | | | 89,046 | |
| Check Point Software Technologies, Ltd. (a) | | | 3,580 | | | | 291,341 | |
| Israel Discount Bank, Ltd., Class A (a) | | | 60,259 | | | | 109,218 | |
| Teva Pharmaceutical Industries, Ltd. | | | 1,747 | | | | 114,669 | |
| Teva Pharmaceutical Industries, Ltd. Sponsored ADR | | | 3,960 | | | | 259,934 | |
| | | | | | | | 937,536 | |
| Italy | 0.4% | | | | | | | | |
| Davide Campari-Milano SpA ADR | | | 144,590 | | | | 631,858 | |
| Moncler SpA | | | 5,164 | | | | 71,514 | |
| Saras SpA (a) | | | 61,565 | | | | 117,939 | |
| | | | | | | | 821,311 | |
| Japan | 6.5% | | | | | | | | |
| Ai Holdings Corp. | | | 3,600 | | | | 91,231 | |
| Alps Electric Co., Ltd. | | | 9,600 | | | | 259,631 | |
| Astellas Pharma, Inc. | | | 6,900 | | | | 98,009 | |
| Canon, Inc. | | | 7,300 | | | | 221,258 | |
| Central Japan Railway Co. | | | 1,300 | | | | 230,282 | |
| Chubu Electric Power Co., Inc. | | | 8,700 | | | | 119,002 | |
| CKD Corp. | | | 9,200 | | | | 91,383 | |
| Daito Trust Construction Co., Ltd. | | | 2,300 | | | | 266,282 | |
| Daiwa House Industry Co., Ltd. | | | 12,000 | | | | 344,047 | |
| Daiwa House Industry Co., Ltd. ADR | | | 49,179 | | | | 1,414,880 | |
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Electric Power Development Co., Ltd. | | | 2,600 | | | $ | 92,525 | |
| Fuji Heavy Industries, Ltd. | | | 8,200 | | | | 337,089 | |
| Fujitsu General, Ltd. | | | 6,000 | | | | 76,224 | |
| Haseko Corp. | | | 11,600 | | | | 128,060 | |
| Heiwa Corp. | | | 7,500 | | | | 140,410 | |
| IT Holdings Corp. | | | 4,000 | | | | 91,402 | |
| Japan Airlines Co., Ltd. | | | 5,400 | | | | 193,382 | |
| Japan Petroleum Exploration Co., Ltd. | | | 3,100 | | | | 83,018 | |
| JTEKT Corp. | | | 12,100 | | | | 198,037 | |
| JVC Kenwood Corp. | | | 34,800 | | | | 95,028 | |
| Kakaku.com, Inc. | | | 6,700 | | | | 132,269 | |
| Kaken Pharmaceutical Co., Ltd. | | | 2,200 | | | | 149,965 | |
| KDDI Corp. ADR | | | 65,205 | | | | 844,079 | |
| Kobe Steel, Ltd. | | | 66,000 | | | | 71,706 | |
| Kubota Corp. | | | 5,000 | | | | 77,075 | |
| Kumagai Gumi Co., Ltd. | | | 38,000 | | | | 109,337 | |
| Kyokuto Kaihatsu Kogyo Co., Ltd. | | | 9,600 | | | | 106,783 | |
| Medipal Holdings Corp. | | | 5,500 | | | | 93,653 | |
| Minebea Co., Ltd. | | | 42,000 | | | | 360,651 | |
| Mitsubishi Electric Corp. | | | 12,000 | | | | 125,814 | |
| Mitsubishi Gas Chemical Co., Inc. | | | 17,000 | | | | 86,857 | |
| Mitsubishi Materials Corp. | | | 60,000 | | | | 188,708 | |
| Mitsubishi UFJ Financial Group, Inc. | | | 87,100 | | | | 539,053 | |
| Mitsubishi UFJ Lease & Finance Co., Ltd. | | | 15,230 | | | | 78,456 | |
| Mitsui & Co., Ltd. | | | 5,300 | | | | 62,947 | |
| Mitsui Chemicals, Inc. | | | 90,000 | | | | 399,186 | |
| Murata Manufacturing Co., Ltd. | | | 6,300 | | | | 904,218 | |
| Nippon Telegraph & Telephone Corp. | | | 9,000 | | | | 357,317 | |
| Nissan Motor Co., Ltd. | | | 87,600 | | | | 917,422 | |
| Nitto Denko Corp. | | | 1,800 | | | | 131,301 | |
| Ryohin Keikaku Co., Ltd. ADR | | | 11,415 | | | | 462,878 | |
| Sanyo Special Steel Co., Ltd. | | | 18,000 | | | | 85,245 | |
| Shimadzu Corp. | | | 6,000 | | | | 100,528 | |
| Shionogi & Co., Ltd. | | | 2,400 | | | | 108,501 | |
| Sompo Japan Nipponkoa Holdings, Inc. | | | 13,700 | | | | 448,117 | |
| Sumitomo Chemical Co., Ltd. | | | 109,000 | | | | 625,575 | |
| Sumitomo Heavy Industries, Ltd. | | | 13,000 | | | | 58,234 | |
| Sumitomo Mitsui Financial Group, Inc. | | | 39,700 | | | | 1,497,575 | |
| Sumitomo Rubber Industries, Ltd. | | | 20,200 | | | | 262,588 | |
| Taikisha, Ltd. | | | 4,300 | | | | 102,907 | |
| The San-In Godo Bank, Ltd. | | | 10,500 | | | | 85,163 | |
| Ube Industries, Ltd. | | | 124,000 | | | | 261,703 | |
| West Japan Railway Co. | | | 1,800 | | | | 124,161 | |
| | | | | | | | 14,531,152 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| | | | | | | | | |
| Lazard Retirement Global Dynamic Multi Asset Portfolio (continued) |
| | | | | | | | | |
| Netherlands | 1.3% | | | | | | | | |
| Aegon NV | | | 88,655 | | | $ | 500,411 | |
| AVG Technologies NV (a) | | | 4,407 | | | | 88,360 | |
| Euronext NV | | | 13,041 | | | | 666,918 | |
| Koninklijke Ahold NV | | | 5,777 | | | | 121,971 | |
| NN Group NV | | | 8,327 | | | | 292,823 | |
| NXP Semiconductors NV (a) | | | 5,500 | | | | 463,375 | |
| Wolters Kluwer NV | | | 3,127 | | | | 104,773 | |
| Wolters Kluwer NV Sponsored ADR | | | 16,930 | | | | 567,324 | |
| | | | | | | | 2,805,955 | |
| New Zealand | 0.4% | | | | | | | | |
| Air New Zealand, Ltd. | | | 212,180 | | | | 428,449 | |
| Fisher & Paykel Healthcare Corp., Ltd., Class C | | | 30,334 | | | | 184,132 | |
| Spark New Zealand, Ltd. | | | 176,707 | | | | 398,278 | |
| | | | | | | | 1,010,859 | |
| Norway | 1.2% | | | | | | | | |
| Statoil ASA | | | 141,899 | | | | 1,984,642 | |
| Telenor ASA | | | 7,416 | | | | 123,374 | |
| Telenor ASA ADR | | | 12,700 | | | | 632,142 | |
| | | | | | | | 2,740,158 | |
| Portugal | 0.1% | | | | | | | | |
| Altri SGPS SA | | | 22,492 | | | | 116,541 | |
| | | | | | | | | |
| Puerto Rico | 0.0% | | | | | | | | |
| EVERTEC, Inc. | | | 5,444 | | | | 91,133 | |
| | | | | | | | | |
| Singapore | 0.6% | | | | | | | | |
| Ascendas Real Estate Investment Trust | | | 133,600 | | | | 213,967 | |
| Avago Technologies, Ltd. | | | 972 | | | | 141,086 | |
| CapitaLand, Ltd. | | | 52,400 | | | | 122,981 | |
| ComfortDelGro Corp., Ltd. | | | 187,800 | | | | 401,698 | |
| Singapore Airlines, Ltd. | | | 11,400 | | | | 89,715 | |
| United Overseas Bank, Ltd. | | | 26,900 | | | | 370,324 | |
| | | | | | | | 1,339,771 | |
| Spain | 0.3% | | | | | | | | |
| Banco Santander SA | | | 28,606 | | | | 140,442 | |
| Bolsas y Mercados Espanoles SA | | | 2,805 | | | | 94,422 | |
| Corporacion Financiera Alba SA | | | 941 | | | | 40,682 | |
| Iberdrola SA | | | 49,293 | | | | 349,454 | |
| Merlin Properties Socimi SA REIT | | | 9,291 | | | | 115,946 | |
| | | | | | | | 740,946 | |
| Sweden | 0.6% | | | | | | | | |
| Assa Abloy AB ADR | | | 100,440 | | | | 1,048,594 | |
| Axfood AB | | | 6,774 | | | | 116,867 | |
| Description | | Shares | | | Value | |
| | | | | | | | | |
| NetEnt AB | | | 3,874 | | | $ | 224,349 | |
| Unibet Group PLC SDR | | | 755 | | | | 77,033 | |
| | | | | | | | 1,466,843 | |
| Switzerland | 1.5% | | | | | | | | |
| Actelion, Ltd. | | | 619 | | | | 85,174 | |
| Actelion, Ltd. ADR | | | 15,700 | | | | 545,261 | |
| Chocoladefabriken Lindt & Spruengli AG | | | 15 | | | | 93,440 | |
| Credit Suisse Group AG Sponsored ADR | | | 20,400 | | | | 442,476 | |
| dorma+kaba Holding AG | | | 147 | | | | 99,739 | |
| Novartis AG | | | 268 | | | | 22,908 | |
| Novartis AG Sponsored ADR | | | 11,880 | | | | 1,022,155 | |
| Roche Holding AG | | | 3,777 | | | | 1,040,896 | |
| | | | | | | | 3,352,049 | |
| United Kingdom | 6.0% | | | | | | | | |
| Admiral Group PLC | | | 5,420 | | | | 131,832 | |
| Aon PLC | | | 8,048 | | | | 742,106 | |
| Auto Trader Group PLC | | | 70,227 | | | | 458,920 | |
| Bellway PLC | | | 11,722 | | | | 488,800 | |
| British American Tobacco PLC Sponsored ADR | | | 8,905 | | | | 983,557 | |
| BT Group PLC | | | 63,488 | | | | 438,779 | |
| Centrica PLC | | | 197,275 | | | | 633,651 | |
| Cineworld Group PLC | | | 19,169 | | | | 158,786 | |
| Compass Group PLC | | | 19,809 | | | | 342,850 | |
| Compass Group PLC Sponsored ADR | | | 43,320 | | | | 763,298 | |
| Debenhams PLC | | | 96,937 | | | | 104,105 | |
| easyJet PLC | | | 3,386 | | | | 86,674 | |
| Essentra PLC | | | 7,186 | | | | 87,270 | |
| Greggs PLC | | | 7,852 | | | | 152,031 | |
| International Consolidated Airlines Group SA Sponsored ADR | | | 3,767 | | | | 168,573 | |
| Lloyds Banking Group PLC ADR | | | 13,311 | | | | 58,036 | |
| Micro Focus International PLC | | | 4,884 | | | | 114,662 | |
| Moneysupermarket.com Group PLC | | | 48,622 | | | | 262,631 | |
| Next PLC | | | 2,830 | | | | 303,374 | |
| Provident Financial PLC Sponsored ADR | | | 16,525 | | | | 842,445 | |
| Prudential PLC ADR | | | 19,065 | | | | 859,450 | |
| RELX NV | | | 1 | | | | 17 | |
| RELX NV Sponsored ADR | | | 58,545 | | | | 985,312 | |
| Rentokil Initial PLC | | | 250,396 | | | | 587,068 | |
| Royal Dutch Shell PLC, A Shares | | | 53,404 | | | | 1,223,420 | |
| Shire PLC | | | 1,356 | | | | 92,932 | |
| Shire PLC ADR | | | 5,940 | | | | 1,217,700 | |
| SSE PLC | | | 16,924 | | | | 378,972 | |
| Unilever PLC Sponsored ADR | | | 15,310 | | | | 660,167 | |
| | | | | | | | 13,327,418 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| |
| Lazard Retirement Global Dynamic Multi Asset Portfolio (continued) |
| |
| United States | 38.4% | | | | | | | | |
| 3M Co. | | | 20,512 | | | $ | 3,089,928 | |
| Aetna, Inc. | | | 4,157 | | | | 449,455 | |
| Allison Transmission Holdings, Inc. | | | 3,058 | | | | 79,172 | |
| Alphabet, Inc.: | | | | | | | | |
| Class A (a) | | | 1,613 | | | | 1,254,930 | |
| Class C (a) | | | 1,437 | | | | 1,090,511 | |
| Altria Group, Inc. | | | 1,565 | | | | 91,099 | |
| Amdocs, Ltd. | | | 2,208 | | | | 120,491 | |
| American Airlines Group, Inc. | | | 3,282 | | | | 138,993 | |
| American Electric Power Co., Inc. | | | 21,165 | | | | 1,233,285 | |
| American International Group, Inc. | | | 1,456 | | | | 90,228 | |
| Amgen, Inc. | | | 5,845 | | | | 948,819 | |
| Apple, Inc. | | | 26,269 | | | | 2,765,075 | |
| Applied Materials, Inc. | | | 24,540 | | | | 458,162 | |
| AT&T, Inc. | | | 57,659 | | | | 1,984,046 | |
| Automatic Data Processing, Inc. | | | 1,105 | | | | 93,616 | |
| AutoZone, Inc. (a) | | | 850 | | | | 630,623 | |
| Ball Corp. | | | 1,292 | | | | 93,967 | |
| Bank of America Corp. | | | 75,006 | | | | 1,262,351 | |
| Biogen, Inc. (a) | | | 1,299 | | | | 397,949 | |
| Bristol-Myers Squibb Co. | | | 8,890 | | | | 611,543 | |
| Cadence Design Systems, Inc. (a) | | | 14,092 | | | | 293,255 | |
| CBOE Holdings, Inc. | | | 3,867 | | | | 250,968 | |
| CBRE Group, Inc., Class A (a) | | | 8,558 | | | | 295,936 | |
| Centene Corp. (a) | | | 3,699 | | | | 243,431 | |
| Chemed Corp. | | | 822 | | | | 123,136 | |
| Cigna Corp. | | | 878 | | | | 128,478 | |
| Cirrus Logic, Inc. (a) | | | 4,861 | | | | 143,545 | |
| Cisco Systems, Inc. | | | 30,550 | | | | 829,585 | |
| Citigroup, Inc. | | | 11,828 | | | | 612,099 | |
| Coca-Cola Enterprises, Inc. | | | 26,999 | | | | 1,329,431 | |
| Colgate-Palmolive Co. | | | 6,004 | | | | 399,986 | |
| Comcast Corp., Class A | | | 8,763 | | | | 494,496 | |
| CR Bard, Inc. | | | 1,341 | | | | 254,039 | |
| CVS Health Corp. | | | 9,310 | | | | 910,239 | |
| Devon Energy Corp. | | | 3,953 | | | | 126,496 | |
| Dr Pepper Snapple Group, Inc. | | | 5,352 | | | | 498,806 | |
| Eaton Vance Corp. | | | 1,647 | | | | 53,412 | |
| Edison International | | | 3,782 | | | | 223,932 | |
| Emerson Electric Co. | | | 2,344 | | | | 112,114 | |
| EOG Resources, Inc. | | | 5,505 | | | | 389,699 | |
| Exelon Corp. | | | 51,143 | | | | 1,420,241 | |
| Facebook, Inc., Class A (a) | | | 4,697 | | | | 491,588 | |
| Description | | Shares | | | Value | |
| |
| FactSet Research Systems, Inc. | | | 1,181 | | | $ | 191,995 | |
| Fidelity National Information Services, Inc. | | | 7,450 | | | | 451,470 | |
| Fiserv, Inc. (a) | | | 3,133 | | | | 286,544 | |
| FMC Technologies, Inc. (a) | | | 18,985 | | | | 550,755 | |
| Foot Locker, Inc. | | | 1,843 | | | | 119,961 | |
| General Dynamics Corp. | | | 1,556 | | | | 213,732 | |
| Gilead Sciences, Inc. | | | 10,374 | | | | 1,049,745 | |
| Global Payments, Inc. | | | 9,737 | | | | 628,134 | |
| Halliburton Co. | | | 16,995 | | | | 578,510 | |
| HCA Holdings, Inc. (a) | | | 9,387 | | | | 634,843 | |
| HealthSouth Corp. | | | 2,200 | | | | 76,582 | |
| Honeywell International, Inc. | | | 13,820 | | | | 1,431,337 | |
| Intel Corp. | | | 35,584 | | | | 1,225,869 | |
| Intercontinental Exchange, Inc. | | | 3,044 | | | | 780,055 | |
| International Business Machines Corp. | | | 2,685 | | | | 369,510 | |
| International Paper Co. | | | 8,577 | | | | 323,353 | |
| Intuit, Inc. | | | 4,438 | | | | 428,267 | |
| Johnson & Johnson | | | 41,153 | | | | 4,227,236 | |
| JPMorgan Chase & Co. | | | 22,792 | | | | 1,504,956 | |
| Kellogg Co. | | | 7,240 | | | | 523,235 | |
| KeyCorp. | | | 73,831 | | | | 973,831 | |
| Lincoln National Corp. | | | 8,581 | | | | 431,281 | |
| Lockheed Martin Corp. | | | 739 | | | | 160,474 | |
| Lowe’s Cos., Inc. | | | 11,310 | | | | 860,012 | |
| Marathon Petroleum Corp. | | | 2,316 | | | | 120,061 | |
| MasterCard, Inc., Class A | | | 8,063 | | | | 785,014 | |
| McDonald’s Corp. | | | 3,746 | | | | 442,552 | |
| McGraw Hill Financial, Inc. | | | 7,292 | | | | 718,845 | |
| McKesson Corp. | | | 3,050 | | | | 601,551 | |
| Mead Johnson Nutrition Co. | | | 4,670 | | | | 368,696 | |
| MetLife, Inc. | | | 11,210 | | | | 540,434 | |
| Mettler-Toledo International, Inc. (a) | | | 352 | | | | 119,374 | |
| Microsoft Corp. | | | 28,049 | | | | 1,556,159 | |
| Molson Coors Brewing Co., Class B | | | 4,151 | | | | 389,862 | |
| Monsanto Co. | | | 5,475 | | | | 539,397 | |
| Motorola Solutions, Inc. | | | 1,259 | | | | 86,179 | |
| National Fuel Gas Co. | | | 3,483 | | | | 148,898 | |
| NetApp, Inc. | | | 2,566 | | | | 68,076 | |
| NIKE, Inc., Class B | | | 27,684 | | | | 1,730,250 | |
| Northrop Grumman Corp. | | | 4,784 | | | | 903,267 | |
| NRG Energy, Inc. | | | 18,004 | | | | 211,907 | |
| O’Reilly Automotive, Inc. (a) | | | 3,881 | | | | 983,523 | |
| OneMain Holdings, Inc. (a) | | | 9,725 | | | | 403,976 | |
| Orbital ATK, Inc. | | | 1,278 | | | | 114,177 | |
| PepsiCo, Inc. | | | 16,335 | | | | 1,632,193 | |
| PerkinElmer, Inc. | | | 1,864 | | | | 99,854 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Shares | | | Value | |
| |
| Lazard Retirement Global Dynamic Multi Asset Portfolio (continued) |
| |
| Philip Morris International, Inc. | | | 1,379 | | | $ | 121,228 | |
| Pinnacle Entertainment, Inc. (a) | | | 3,681 | | | | 114,553 | |
| Premier, Inc., Class A (a) | | | 4,845 | | | | 170,883 | |
| Public Service Enterprise Group, Inc. | | | 8,872 | | | | 343,258 | |
| PVH Corp. | | | 1,166 | | | | 85,876 | |
| QUALCOMM, Inc. | | | 1 | | | | 50 | |
| Quintiles Transnational Holdings, Inc. (a) | | | 11,020 | | | | 756,633 | |
| Raytheon Co. | | | 3,915 | | | | 487,535 | |
| Regions Financial Corp. | | | 18,196 | | | | 174,682 | |
| Reynolds American, Inc. | | | 23,747 | | | | 1,095,924 | |
| Rockwell Automation, Inc. | | | 5,782 | | | | 593,291 | |
| Rockwell Collins, Inc. | | | 1,305 | | | | 120,451 | |
| Ross Stores, Inc. | | | 15,214 | | | | 818,665 | |
| Rowan Cos. PLC, Class A | | | 4,644 | | | | 78,716 | |
| Sanderson Farms, Inc. | | | 1,576 | | | | 122,172 | |
| Schlumberger, Ltd. | | | 9,095 | | | | 634,376 | |
| Skyworks Solutions, Inc. | | | 7,931 | | | | 609,339 | |
| Spirit AeroSystems Holdings, Inc., Class A (a) | | | 1,764 | | | | 88,323 | |
| Starbucks Corp. | | | 16,941 | | | | 1,016,968 | |
| SunTrust Banks, Inc. | | | 9,605 | | | | 411,478 | |
| Target Corp. | | | 1,639 | | | | 119,008 | |
| Team Health Holdings, Inc. (a) | | | 3,768 | | | | 165,378 | |
| Tesoro Corp. | | | 1,840 | | | | 193,881 | |
| Texas Instruments, Inc. | | | 8,512 | | | | 466,543 | |
| The Allstate Corp. | | | 15,212 | | | | 944,513 | |
| The Boeing Co. | | | 1,661 | | | | 240,164 | |
| The Charles Schwab Corp. | | | 11,815 | | | | 389,068 | |
| The Clorox Co. | | | 2,192 | | | | 278,011 | |
| The Dow Chemical Co. | | | 5,430 | | | | 279,536 | |
| The Estee Lauder Cos., Inc., Class A | | | 1,130 | | | | 99,508 | |
| The Hartford Financial Services Group, Inc. | | | 10,130 | | | | 440,250 | |
| The J.M. Smucker Co. | | | 4,235 | | | | 522,345 | |
| The Kroger Co. | | | 47,868 | | | | 2,002,318 | |
| The Procter & Gamble Co. | | | 10,170 | | | | 807,600 | |
| The Southern Co. | | | 8,456 | | | | 395,656 | |
| The TJX Cos., Inc. | | | 4,464 | | | | 316,542 | |
| The Walt Disney Co. | | | 17,588 | | | | 1,848,147 | |
| Thermo Fisher Scientific, Inc. | | | 6,209 | | | | 880,747 | |
| Time Warner, Inc. | | | 9,771 | | | | 631,891 | |
| Triumph Group, Inc. | | | 2,374 | | | | 94,366 | |
| Twitter, Inc. (a) | | | 7,230 | | | | 167,302 | |
| Tyco International PLC | | | 11,420 | | | | 364,184 | |
| Tyson Foods, Inc., Class A | | | 1,650 | | | | 87,994 | |
| Description | | Shares | | | Value | |
| |
| Union Pacific Corp. | | | 5,250 | | | $ | 410,550 | |
| United Rentals, Inc. (a) | | | 1,614 | | | | 117,080 | |
| United Technologies Corp. | | | 4,230 | | | | 406,376 | |
| UnitedHealth Group, Inc. | | | 783 | | | | 92,112 | |
| Universal Health Services, Inc., Class B | | | 995 | | | | 118,893 | |
| Unum Group | | | 2,466 | | | | 82,093 | |
| Valero Energy Corp. | | | 1,640 | | | | 115,964 | |
| VeriFone Systems, Inc. (a) | | | 10,572 | | | | 296,227 | |
| Verizon Communications, Inc. | | | 50,711 | | | | 2,343,862 | |
| Visa, Inc., Class A | | | 14,357 | | | | 1,113,385 | |
| Wabash National Corp. (a) | | | 6,667 | | | | 78,871 | |
| Waste Management, Inc. | | | 4,908 | | | | 261,940 | |
| Waters Corp. (a) | | | 1,771 | | | | 238,341 | |
| Wells Fargo & Co. | | | 25,344 | | | | 1,377,700 | |
| Wyndham Worldwide Corp. | | | 3,381 | | | | 245,630 | |
| Xcel Energy, Inc. | | | 7,476 | | | | 268,463 | |
| Zebra Technologies Corp., Class A (a) | | | 7,504 | | | | 522,654 | |
| Zoetis, Inc. | | | 14,460 | | | | 692,923 | |
| | | | | | | | 85,457,504 | |
Total Common Stocks
(Identified cost $155,741,306) | | | | | | | 157,487,252 | |
| Description | | Security
Currency | | Principal
Amount
(000) | | Value | |
| |
| Corporate Bonds | 9.0% | | | | | | | | | | |
| |
| Australia | 0.7% | | | | | | | | | | |
Telstra Corp., Ltd.,
4.000%, 11/15/17 | | AUD | | | 1,220 | | | $ | 904,524 | |
Toyota Finance Australia, Ltd.,
4.250%, 05/15/19 | | AUD | | | 827 | | | | 618,400 | |
| | | | | | | | | | 1,522,924 | |
| Canada | 1.5% | | | | | | | | | | |
John Deere Canada Funding, Inc.,
2.300%, 01/17/18 | | CAD | | | 290 | | | | 212,983 | |
Suncor Energy, Inc.,
6.100%, 06/01/18 | | USD | | | 525 | | | | 564,728 | |
The Bank of Nova Scotia,
2.125%, 09/11/19 | | USD | | | 1,300 | | | | 1,298,736 | |
| The Toronto-Dominion Bank: | | | | | | | | | | |
| 2.250%, 11/05/19 | | USD | | | 325 | | | | 324,924 | |
| 2.621%, 12/22/21 | | CAD | | | 720 | | | | 530,839 | |
Wells Fargo Canada Corp.,
3.040%, 01/29/21 | | CAD | | | 525 | | | | 396,381 | |
| | | | | | | | | | 3,328,591 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Security
Currency | | Principal
Amount
(000) | | Value | |
| | | | | | | | | | | |
| Lazard Retirement Global Dynamic Multi Asset Portfolio (continued) |
| | | | | | | | | | | |
| Chile | 0.2% | | | | | | | | | | |
Codelco, Inc.,
4.500%, 08/13/23 | | USD | | | 500 | | | $ | 484,777 | |
| | | | | | | | | | | |
| Denmark | 0.2% | | | | | | | | | | |
Carlsberg Breweries A/S,
2.500%, 05/28/24 | | EUR | | | 400 | | | | 447,276 | |
| | | | | | | | | | | |
| France | 0.1% | | | | | | | | | | |
Orange SA,
5.375%, 07/08/19 | | USD | | | 195 | | | | 214,956 | |
| | | | | | | | | | | |
| Italy | 0.2% | | | | | | | | | | |
Atlantia SpA,
4.375%, 09/16/25 | | EUR | | | 395 | | | | 528,921 | |
| | | | | | | | | | | |
| Mexico | 0.2% | | | | | | | | | | |
America Movil SAB de CV,
6.450%, 12/05/22 | | MXN | | | 7,000 | | | | 387,022 | |
| | | | | | | | | | | |
| Netherlands | 0.7% | | | | | | | | | | |
Bank Nederlandse Gemeenten NV,
5.000%, 09/16/20 | | NZD | | | 660 | | | | 473,315 | |
BMW Finance NV,
3.375%, 12/14/18 | | GBP | | | 460 | | | | 709,631 | |
Deutsche Bahn Finance BV,
3.375%, 09/01/16 | | NOK | | | 2,980 | | | | 340,984 | |
| | | | | | | | | | 1,523,930 | |
| New Zealand | 0.1% | | | | | | | | | | |
Fonterra Cooperative Group, Ltd.,
5.500%, 02/26/24 | | AUD | | | 300 | | | | 235,860 | |
| | | | | | | | | | | |
| Norway | 0.3% | | | | | | | | | | |
Statoil ASA,
3.700%, 03/01/24 | | USD | | | 445 | | | | 451,082 | |
Telenor ASA,
1.750%, 05/22/18 | | USD | | | 200 | | | | 199,071 | |
| | | | | | | | | | 650,153 | |
| Singapore | 0.5% | | | | | | | | | | |
Temasek Financial I, Ltd.,
4.300%, 10/25/19 | | USD | | | 1,000 | | | | 1,079,567 | |
| Description | | Security
Currency | | Principal
Amount
(000) | | Value | |
| | | | | | | | | | | |
| United Kingdom | 1.0% | | | | | | | | | | |
Abbey National Treasury Services PLC,
5.125%, 04/14/21 | | GBP | | | 510 | | | $ | 858,637 | |
Centrica PLC,
7.000%, 09/19/18 | | GBP | | | 100 | | | | 166,279 | |
Rolls-Royce PLC,
6.750%, 04/30/19 | | GBP | | | 372 | | | | 627,232 | |
SSE PLC,
5.000%, 10/01/18 | | GBP | | | 370 | | | | 589,065 | |
| | | | | | | | | | 2,241,213 | |
| United States | 3.3% | | | | | | | | | | |
Anheuser-Busch InBev Worldwide, Inc.,
3.650%, 01/15/16 | | CAD | | | 1,070 | | | | 773,668 | |
Apple, Inc.,
3.850%, 05/04/43 | | USD | | | 520 | | | | 479,115 | |
Daimler Finance North America LLC,
3.875%, 09/15/21 | | USD | | | 280 | | | | 290,965 | |
General Electric Capital Corp.,
5.500%, 02/01/17 | | NZD | | | 305 | �� | | | 212,607 | |
John Deere Capital Corp.,
2.300%, 09/16/19 | | USD | | | 200 | | | | 200,801 | |
Marathon Petroleum Corp.,
3.625%, 09/15/24 | | USD | | | 285 | | | | 265,718 | |
Morgan Stanley,
2.500%, 01/24/19 | | USD | | | 835 | | | | 839,740 | |
Nestle Holdings, Inc.,
2.500%, 07/10/17 | | NOK | | | 5,480 | | | | 631,688 | |
| The Goldman Sachs Group, Inc.: | | | | | | | | | | |
| 5.200%, 12/17/19 | | NZD | | | 935 | | | | 661,233 | |
| 3.625%, 01/22/23 | | USD | | | 575 | | | | 581,748 | |
The Home Depot, Inc.,
2.625%, 06/01/22 | | USD | | | 615 | | | | 614,430 | |
Union Pacific Corp.,
4.163%, 07/15/22 | | USD | | | 620 | | | | 670,584 | |
Valero Energy Corp.,
6.125%, 02/01/20 | | USD | | | 249 | | | | 274,686 | |
Verizon Communications, Inc.,
1.350%, 06/09/17 | | USD | | | 810 | | | | 807,694 | |
| | | | | | | | | | 7,304,677 | |
Total Corporate Bonds
(Identified cost $21,131,552) | | | | | | | | | 19,949,867 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Security
Currency | | Principal
Amount
(000) | | Value | |
| |
| Lazard Retirement Global Dynamic Multi Asset Portfolio (continued) |
| |
| Foreign Government Obligations | 12.2% | |
| |
| Australia | 1.0% | | | | | | | | | | |
Queensland Treasury Corp.,
5.500%, 06/21/21 | | AUD | | | 895 | | | $ | 742,403 | |
Treasury Corp. of Victoria,
6.000%, 10/17/22 | | AUD | | | 965 | | | | 842,682 | |
Western Australian Treasury Corp.,
6.000%, 10/16/23 | | AUD | | | 705 | | | | 611,237 | |
| | | | | | | | | | 2,196,322 | |
| Bahamas | 0.5% | | | | | | | | | | |
| Commonwealth of Bahamas: | | | | | | | | | | |
| 5.750%, 01/16/24 | | USD | | | 270 | | | | 282,150 | |
| 6.950%, 11/20/29 | | USD | | | 750 | | | | 875,625 | |
| | | | | | | | | | 1,157,775 | |
| Bermuda | 0.5% | | | | | | | | | | |
Government of Bermuda,
5.603%, 07/20/20 | | USD | | | 1,040 | | | | 1,137,500 | |
| |
| Canada | 2.4% | | | | | | | | | | |
Canada Government Bond,
1.125%, 03/19/18 | | USD | | | 600 | | | | 598,239 | |
City of Vancouver,
2.900%, 11/20/25 | | CAD | | | 415 | | | | 305,472 | |
Province of Alberta,
4.000%, 12/01/19 | | CAD | | | 2,030 | | | | 1,621,711 | |
Province of British Columbia,
3.700%, 12/18/20 | | CAD | | | 655 | | | | 526,045 | |
Province of Ontario,
2.450%, 06/29/22 | | USD | | | 900 | | | | 892,061 | |
Province of Quebec,
3.500%, 07/29/20 | | USD | | | 1,245 | | | | 1,316,895 | |
| | | | | | | | | | 5,260,423 | |
| Chile | 0.3% | | | | | | | | | | |
Republic of Chile,
1.625%, 01/30/25 | | EUR | | | 600 | | | | 650,094 | |
| |
| Colombia | 0.3% | | | | | | | | | | |
Republic of Colombia,
2.625%, 03/15/23 | | USD | | | 650 | | | | 572,650 | |
| Description | | Security
Currency | | Principal
Amount
(000) | | Value | |
| |
| Ireland | 0.9% | | | | | | | | | | |
| Irish Treasury: | | | | | | | | | | |
| 3.400%, 03/18/24 | | EUR | | | 905 | | | $ | 1,170,414 | |
| 2.400%, 05/15/30 | | EUR | | | 775 | | | | 919,582 | |
| | | | | | | | | | 2,089,996 | |
| Mexico | 1.1% | | | | | | | | | | |
| Mexican Bonos: | | | | | | | | | | |
| 4.750%, 06/14/18 | | MXN | | | 19,140 | | | | 1,115,873 | |
| 6.500%, 06/09/22 | | MXN | | | 9,260 | | | | 552,865 | |
United Mexican States,
6.750%, 02/06/24 | | GBP | | | 470 | | | | 843,180 | |
| | | | | | | | | | 2,511,918 | |
| New Zealand | 0.5% | | | | | | | | | | |
New Zealand Government Bond,
3.000%, 04/15/20 | | NZD | | | 1,560 | | | | 1,070,764 | |
| |
| Norway | 0.9% | | | | | | | | | | |
| Oslo Kommune: | | | | | | | | | | |
| 4.900%, 11/04/19 | | NOK | | | 2,000 | | | | 252,569 | |
| 3.550%, 02/12/21 | | NOK | | | 4,000 | | | | 486,093 | |
| 2.450%, 05/24/23 | | NOK | | | 2,000 | | | | 229,136 | |
| 3.650%, 11/08/23 | | NOK | | | 2,000 | | | | 248,291 | |
| 2.350%, 09/04/24 | | NOK | | | 4,000 | | | | 447,917 | |
| 2.400%, 02/13/30 | | NOK | | | 4,000 | | | | 428,388 | |
| | | | | | | | | | 2,092,394 | |
| Panama | 0.4% | | | | | | | | | | |
Republic of Panama,
4.000%, 09/22/24 | | USD | | | 800 | | | | 803,000 | |
| |
| Poland | 0.9% | | | | | | | | | | |
Poland Government Bond,
1.790%, 01/25/21 | | PLN | | | 4,815 | | | | 1,205,400 | |
Republic of Poland,
3.000%, 03/17/23 | | USD | | | 729 | | | | 721,710 | |
| | | | | | | | | | 1,927,110 | |
| Singapore | 0.4% | | | | | | | | | | |
Singapore Government Bond,
3.000%, 09/01/24 | | SGD | | | 1,250 | | | | 912,441 | |
| |
| Slovakia | 0.1% | | | | | | | | | | |
Slovak Republic,
4.375%, 05/21/22 | | USD | | | 200 | | | | 221,708 | |
| |
| Spain | 0.2% | | | | | | | | | | |
Spain Government Bond,
1.600%, 04/30/25 | | EUR | | | 295 | | | | 318,670 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Security
Currency | | Principal
Amount
(000) | | Value | |
| |
| Lazard Retirement Global Dynamic Multi Asset Portfolio (continued) |
| |
| Sweden | 0.5% | | | | | | | | | | |
Svensk Exportkredit AB,
1.875%, 12/21/18 | | GBP | | | 785 | | | $ | 1,175,021 | |
| |
| United Kingdom | 1.3% | | | | | | | | | | |
| United Kingdom Treasury: | | | | | | | | | | |
| 1.750%, 07/22/19 | | GBP | | | 435 | | | | 655,246 | |
| 2.000%, 07/22/20 | | GBP | | | 395 | | | | 599,580 | |
| 2.250%, 09/07/23 | | GBP | | | 1,130 | | | | 1,724,071 | |
| | | | | | | | | | 2,978,897 | |
Total Foreign Government Obligations
(Identified cost $28,829,896) | | | | | | | | | 27,076,683 | |
| |
| Quasi Government Bonds | 1.4% | | | | | | | | |
| | | | | | | | | |
| Canada | 0.6% | | | | | | | | | | |
| Hydro-Quebec: | | | | | | | | | | |
| 0.977%, 12/01/19 | | CAD | | | 1,235 | | | | 888,741 | |
| 9.625%, 07/15/22 | | CAD | | | 303 | | | | 322,821 | |
| | | | | | | | | | 1,211,562 | |
| Germany | 0.4% | | | | | | | | | | |
| KFW: | | | | | | | | | | |
| 2.875%, 10/12/16 | | NOK | | | 1,210 | | | | 138,608 | |
| 1.125%, 12/23/19 | | GBP | | | 400 | | | | 582,629 | |
Landeskreditbank Baden-Wuerttemberg Foerderbank,
3.000%, 05/22/17 | | NOK | | | 1,180 | | | | 136,819 | |
| | | | | | | | | | 858,056 | |
| Mexico | 0.3% | | | | | | | | | | |
Nacional Financiera SNC,
3.375%, 11/05/20 (d) | | USD | | | 300 | | | | 297,113 | |
Petroleos Mexicanos,
1.875%, 04/21/22 | | EUR | | | 500 | | | | 454,635 | |
| | | | | | | | | | 751,748 | |
| South Korea | 0.1% | | | | | | | | | | |
The Korea Development Bank,
4.500%, 11/22/19 | | AUD | | | 380 | | | | 285,501 | |
| |
Total Quasi Government Bonds
(Identified cost $3,341,265) | | | | | | | | | 3,106,867 | |
| |
| Supranationals | 1.1% | | | | | | | | | | |
African Development Bank,
2.375%, 09/23/21 | | USD | | | 610 | | | | 619,611 | |
| Description | | Security
Currency | | Principal
Amount
(000) | | Value | |
| |
Asian Development Bank,
2.125%, 03/19/25 | | USD | | | 560 | | | $ | 546,517 | |
Corporacion Andina de Fomento,
4.375%, 06/15/22 | | USD | | | 810 | | | | 862,326 | |
Inter-American Development Bank,
6.000%, 12/15/17 | | NZD | | | 465 | | | | 334,887 | |
| |
Total Supranationals
(Identified cost $2,428,839) | | | | | | | | | 2,363,341 | |
| |
| US Municipal Bonds | 0.8% | | | | | | | | | | |
| |
| Georgia | 0.2% | | | | | | | | | | |
Georgia State Build America Bond Series H,
5.014%, 11/01/27 | | USD | | | 420 | | | | 489,947 | |
| |
| New Jersey | 0.0% | | | | | | | | | | |
New Jersey State Transportation Trust Fund Authority Build America Bond Series C,
5.754%, 12/15/28 | | USD | | | 100 | | | | 102,957 | |
| |
| Pennsylvania | 0.0% | | | | | | | | | | |
Pennsylvania State Build America Bond Third Series B,
5.850%, 07/15/30 | | USD | | | 50 | | | | 56,432 | |
| |
| Texas | 0.1% | | | | | | | | | | |
Texas State Build America Bond Series A,
4.123%, 04/01/25 | | USD | | | 100 | | | | 110,332 | |
| |
| Utah | 0.4% | | | | | | | | | | |
| Utah State Build America Bonds: | | | | | | | | | | |
| Series B, 3.539%, 07/01/25 | | USD | | | 295 | | | | 310,207 | |
| Series D, 4.554%, 07/01/24 | | USD | | | 460 | | | | 517,049 | |
| | | | | | | | | | 827,256 | |
| Wisconsin | 0.1% | | | | | | | | | | |
Wisconsin State Build America Bond Series D,
5.400%, 05/01/28 | | USD | | | 175 | | | | 196,774 | |
| |
Total US Municipal Bonds
(Identified cost $1,781,327) | | | | | | | | | 1,783,698 | |
The accompanying notes are an integral part of these financial statements.
| Description | | Security
Currency | | Principal
Amount
(000) | | Value | |
| |
| Lazard Retirement Global Dynamic Multi Asset Portfolio (continued) |
| |
| US Treasury Securities | 1.1% | | | | | | | | | | |
US Treasury Bond,
2.875%, 08/15/45 | | USD | | | 632 | | | $ | 612,620 | |
US Treasury Note,
2.125%, 05/15/25 | | USD | | | 1,910 | | | | 1,884,962 | |
| | | | | | | | | | | |
Total US Treasury Securities
(Identified cost $2,524,649) | | | | | | | | | 2,497,582 | |
| Description | | Shares | | | Value | |
| |
| Right | 0.0% | | | | | | |
| |
| Singapore | 0.0% | | | | | | | | |
Ascendas Real Estate Investment Trust
Expires 01/13/16 (c)
(Identified cost $0) | | | 5,010 | | | $ | 219 | |
| |
| Short-Term Investment | 3.6% | | | | | | | | |
State Street Institutional Treasury Money Market Fund
(Identified cost $8,080,475) | | | 8,080,475 | | | | 8,080,475 | |
| |
Total Investments | 99.9%
(Identified cost $223,859,309) (b), (e) | | | | | | $ | 222,345,984 | |
| |
| Cash and Other Assets in Excess of Liabilities | 0.1% | | | | 320,207 | |
| |
| Net Assets | 100.0% | | | | | | $ | 222,666,191 | |
The accompanying notes are an integral part of these financial statements.
Lazard Retirement Global Dynamic Multi Asset Portfolio (continued)
Forward Currency Contracts open at December 31, 2015:
| Currency | | Counterparty | | Settlement
Date | | Quantity | | Cost
on Origination
Date^ | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
| |
| Forward Currency Purchase Contracts |
| AUD | | CAN | | 02/18/16 | | | 408,028 | | | | 296,000 | | | $ | 685 | | | $ | — | |
| AUD | | CAN | | 02/18/16 | | | 507,933 | | | | 371,213 | | | | — | | | | 1,885 | |
| AUD | | CIT | | 02/18/16 | | | 615,269 | | | | 444,000 | | | | 3,375 | | | | — | |
| CAD | | CIT | | 02/18/16 | | | 416,116 | | | | 298,648 | | | | 2,113 | | | | — | |
| CZK | | CIT | | 02/18/16 | | | 3,912,917 | | | | 156,248 | | | | 1,296 | | | | — | |
| EUR | | CIT | | 02/18/16 | | | 393,160 | | | | 425,234 | | | | 2,497 | | | | — | |
| EUR | | CIT | | 02/18/16 | | | 608,102 | | | | 668,000 | | | | — | | | | 6,426 | |
| EUR | | CIT | | 02/18/16 | | | 1,731,777 | | | | 1,896,105 | | | | — | | | | 12,050 | |
| EUR | | HSB | | 01/08/16 | | | 1,158,841 | | | | 1,227,329 | | | | 32,141 | | | | — | |
| EUR | | HSB | | 01/08/16 | | | 1,527,825 | | | | 1,678,664 | | | | — | | | | 18,170 | |
| EUR | | HSB | | 02/18/16 | | | 7,331,733 | | | | 7,929,782 | | | | 46,644 | | | | — | |
| GBP | | CIT | | 02/18/16 | | | 127,382 | | | | 192,674 | | | | — | | | | 4,871 | |
| GBP | | SSB | | 01/08/16 | | | 285,237 | | | | 428,778 | | | | — | | | | 8,279 | |
| JPY | | CIT | | 02/18/16 | | | 850,139,166 | | | | 6,930,294 | | | | 149,119 | | | | — | |
| JPY | | HSB | | 02/18/16 | | | 65,720,970 | | | | 542,700 | | | | 4,582 | | | | — | |
| JPY | | HSB | | 02/18/16 | | | 299,587,315 | | | | 2,442,023 | | | | 52,748 | | | | — | |
| JPY | | SSB | | 01/08/16 | | | 77,444,595 | | | | 629,894 | | | | 14,482 | | | | — | |
| KRW | | CIT | | 01/19/16 | | | 858,401,400 | | | | 732,831 | | | | — | | | | 1,034 | |
| MXN | | CIT | | 02/18/16 | | | 6,692,226 | | | | 403,100 | | | | — | | | | 16,013 | |
| MXN | | JPM | | 02/18/16 | | | 1,649,481 | | | | 99,706 | | | | — | | | | 4,298 | |
| MXN | | JPM | | 02/18/16 | | | 1,974,936 | | | | 119,379 | | | | — | | | | 5,146 | |
| NOK | | HSB | | 02/18/16 | | | 2,650,592 | | | | 306,014 | | | | — | | | | 6,702 | |
| NZD | | CAN | | 02/18/16 | | | 478,687 | | | | 326,000 | | | | 525 | | | | — | |
| NZD | | CIT | | 02/18/16 | | | 706,760 | | | | 456,800 | | | | 25,299 | | | | — | |
| SEK | | CIT | | 02/18/16 | | | 3,924,375 | | | | 467,193 | | | | — | | | | 1,709 | |
| Total Forward Currency Purchase Contracts | | | $ | 335,506 | | | $ | 86,583 | |
| | | | | | | | | | |
| Forward Currency Sale Contracts | | | | | | | | | |
| AUD | | CAN | | 02/18/16 | | | 4,746,841 | | | | 3,364,039 | | | $ | — | | | $ | 87,483 | |
| AUD | | CIT | | 02/18/16 | | | 394,843 | | | | 286,755 | | | | — | | | | 343 | |
| AUD | | HSB | | 01/08/16 | | | 873,199 | | | | 629,471 | | | | — | | | | 6,739 | |
| AUD | | HSB | | 02/18/16 | | | 797,354 | | | | 572,500 | | | | — | | | | 7,272 | |
| AUD | | SSB | | 01/08/16 | | | 437,148 | | | | 315,225 | | | | — | | | | 3,279 | |
| CAD | | CIT | | 02/18/16 | | | 846,066 | | | | 636,427 | | | | 24,905 | | | | — | |
| CAD | | HSB | | 01/08/16 | | | 3,667,638 | | | | 2,746,759 | | | | 96,146 | | | | — | |
| CAD | | RBC | | 02/18/16 | | | 297,700 | | | | 213,348 | | | | — | | | | 1,824 | |
| CAD | | RBC | | 02/18/16 | | | 413,606 | | | | 310,547 | | | | 11,601 | | | | — | |
| CAD | | RBC | | 02/18/16 | | | 1,231,192 | | | | 887,302 | | | | — | | | | 2,582 | |
| CAD | | RBC | | 02/18/16 | | | 2,902,508 | | | | 2,183,223 | | | | 85,342 | | | | — | |
| CAD | | SSB | | 01/08/16 | | | 455,213 | | | | 340,868 | | | | 11,884 | | | | — | |
The accompanying notes are an integral part of these financial statements.
Lazard Retirement Global Dynamic Multi Asset Portfolio (concluded)
Forward Currency Contracts open at December 31, 2015 (concluded):
| Currency | | Counterparty | | Settlement
Date | | Quantity | | Cost
on Origination
Date^ | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
| | | | | | | | | | | | | | | | | |
| Forward Currency Sale Contracts (concluded) |
| CZK | | CIT | | 02/18/16 | | | 2,363,607 | | | | 94,382 | | | $ | — | | | $ | 783 | |
| EUR | | HSB | | 02/18/16 | | | 1,047,435 | | | | 1,132,874 | | | | — | | | | 6,664 | |
| GBP | | CIT | | 02/18/16 | | | 369,704 | | | | 561,749 | | | | 16,680 | | | | — | |
| GBP | | CIT | | 02/18/16 | | | 396,526 | | | | 592,048 | | | | 7,434 | | | | — | |
| GBP | | HSB | | 02/18/16 | | | 2,363,219 | | | | 3,591,074 | | | | 106,890 | | | | — | |
| GBP | | JPM | | 02/18/16 | | | 222,570 | | | | 338,239 | | | | 10,096 | | | | — | |
| HKD | | SSB | | 01/08/16 | | | 12,715,543 | | | | 1,640,904 | | | | 157 | | | | — | |
| JPY | | CIT | | 02/18/16 | | | 86,437,380 | | | | 704,633 | | | | — | | | | 15,162 | |
| JPY | | HSB | | 01/08/16 | | | 66,588,262 | | | | 541,588 | | | | — | | | | 12,458 | |
| MXN | | CIT | | 02/18/16 | | | 9,251,609 | | | | 530,821 | | | | — | | | | 4,305 | |
| MXN | | HSB | | 02/18/16 | | | 25,620,173 | | | | 1,524,103 | | | | 42,198 | | | | — | |
| MXN | | JPM | | 02/18/16 | | | 7,392,806 | | | | 439,784 | | | | 12,174 | | | | — | |
| NOK | | HSB | | 02/18/16 | | | 3,990,400 | | | | 466,659 | | | | 16,052 | | | | — | |
| NOK | | HSB | | 02/18/16 | | | 26,262,045 | | | | 3,014,185 | | | | 48,601 | | | | — | |
| NZD | | BRC | | 02/18/16 | | | 1,544,008 | | | | 1,001,336 | | | | — | | | | 51,873 | |
| NZD | | CAN | | 02/18/16 | | | 707,082 | | | | 461,088 | | | | — | | | | 21,231 | |
| NZD | | CAN | | 02/18/16 | | | 1,551,681 | | | | 1,006,056 | | | | — | | | | 52,387 | |
| NZD | | CIT | | 02/18/16 | | | 900,016 | | | | 602,300 | | | | — | | | | 11,625 | |
| PLN | | HSB | | 02/18/16 | | | 4,371,284 | | | | 1,105,395 | | | | — | | | | 7,945 | |
| SEK | | CIT | | 02/18/16 | | | 1,392,703 | | | | 160,685 | | | | — | | | | 4,509 | |
| SGD | | SCB | | 02/18/16 | | | 1,309,643 | | | | 917,098 | | | | — | | | | 5,202 | |
| Total Forward Currency Sale Contracts | | | | 490,160 | | | | 303,666 | |
| | | | | | | | | | |
| Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts | | | $ | 825,666 | | | $ | 390,249 | |
| ^ | In USD unless otherwise indicated. |
The accompanying notes are an integral part of these financial statements.
Lazard Retirement Series, Inc. Notes to Portfolios of Investments December 31, 2015
| (a) | Non-income producing security. |
| (b) | 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) | |
| | | | | | | | | | | | | | | | | |
| US Strategic Equity | | $ | 11,665,911 | | | $ | 731,355 | | | $ | 838,515 | | | $ | (107,160 | ) |
| US Small-Mid Cap Equity | | | 57,405,364 | | | | 5,554,559 | | | | 3,499,403 | | | | 2,055,156 | |
| International Equity | | | 599,293,076 | | | | 125,023,339 | | | | 44,671,937 | | | | 80,351,402 | |
| Emerging Markets Equity | | | 1,152,417,553 | | | | 87,353,546 | | | | 336,481,281 | | | | (249,127,735 | ) |
| Global Dynamic Multi Asset | | | 225,020,892 | | | | 8,897,151 | | | | 11,572,059 | | | | (2,674,908 | ) |
| (c) | Security valued using Level 2 inputs, based on reference to a similar security which was trading on an active market, under accounting principles generally accepted in the United States of America (“GAAP”) hierarchy – see Note 8. |
| (d) | Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2015, the percentage of net assets for each Portfolio was as follows: |
| Portfolio | | Percentage of
Net Assets |
| | | | | |
| Emerging Markets Equity | | | 1.0 | % |
| Global Dynamic Multi Asset | | | 0.1 | |
| (e) | 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 |
| PJSC | — | Public Joint Stock Company |
| REIT | — | Real Estate Investment Trust |
| SDR | — | Swedish Depositary Receipt |
Currency Abbreviations:
| AUD | — | Australian Dollar | MXN | — | Mexican New Peso |
| CAD | — | Canadian Dollar | NOK | — | Norwegian Krone |
| CZK | — | Czech Koruna | NZD | — | New Zealand Dollar |
| EUR | — | Euro | PLN | — | Polish Zloty |
| GBP | — | British Pound Sterling | SEK | — | Swedish Krone |
| HKD | — | Hong Kong Dollar | SGD | — | Singapore Dollar |
| JPY | — | Japanese Yen | USD | — | United States Dollar |
| KRW | — | South Korean Won | | | |
Counterparty Abbreviations:
| BRC | — | Barclays Bank PLC | JPM | — | JPMorgan Chase Bank NA |
| 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. |
The accompanying notes are an integral part of these financial statements.
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country:
| Industry* | | Lazard
Retirement
International
Equity
Portfolio | Lazard
Retirement
Emerging
Markets Equity
Portfolio | Lazard
Retirement Global
Dynamic
Multi Asset
Portfolio |
| | | | | | | | | | | | | | |
| Aerospace & Defense | | | — | % | | | — | % | | | 0.5 | % | |
| Agriculture | | | — | | | | — | | | | 0.2 | | |
| Alcohol & Tobacco | | | 8.3 | | | | 3.3 | | | | 2.6 | | |
| Automotive | | | 2.9 | | | | 3.6 | | | | 2.1 | | |
| Banking | | | 8.3 | | | | 21.8 | | | | 6.6 | | |
| Cable Television | | | — | | | | — | | | | 0.3 | | |
| Chemicals | | | — | | | | 0.7 | | | | 1.2 | | |
| Commercial Services | | | 2.4 | | | | 2.7 | | | | 2.3 | | |
| Computer Software & Services | | | 0.9 | | | | 6.9 | | | | 1.4 | | |
| Construction & Engineering | | | 1.7 | | | | — | | | | 0.3 | | |
| Consumer Products | | | 0.9 | | | | — | | | | 0.2 | | |
| Diversified | | | 0.8 | | | | 0.9 | | | | — | | |
| Electric | | | 1.0 | | | | 0.2 | | | | 3.4 | | |
| Energy Exploration & Production | | | 0.6 | | | | 2.6 | | | | 0.9 | | |
| Energy Integrated | | | 5.3 | | | | 4.3 | | | | 2.5 | | |
| Energy Services | | | — | | | | — | | | | 0.9 | | |
| Financial Services | | | 6.0 | | | | 2.8 | | | | 5.7 | | |
| Food & Beverages | | | — | | | | — | | | | 2.8 | | |
| Forest & Paper Products | | | 1.6 | | | | 1.1 | | | | 0.3 | | |
| Gas Utilities | | | — | | | | — | | | | 0.4 | | |
| Health Services | | | — | | | | — | | | | 1.5 | | |
| Household & Personal Products | | | 1.3 | | | | 2.0 | | | | 1.0 | | |
| Housing | | | 4.3 | | | | 1.2 | | | | 1.1 | | |
| Insurance | | | 8.5 | | | | 2.7 | | | | 4.0 | | |
| Leisure & Entertainment | | | 5.7 | | | | 0.6 | | | | 3.9 | | |
| Machinery | | | — | | | | — | | | | 0.2 | | |
| Manufacturing | | | 2.9 | | | | 3.9 | | | | 5.3 | | |
| Media | | | — | | | | — | | | | 1.0 | | |
| Medical Products | | | — | | | | — | | | | 0.9 | | |
| Metals & Glass Containers | | | — | | | | — | | | | 0.1 | | |
| Metals & Mining | | | 0.6 | | | | 1.8 | | | | 0.9 | | |
| Pharmaceutical & Biotechnology | | | 11.8 | | | | — | | | | 7.3 | | |
| Real Estate | | | — | | | | — | | | | 1.8 | | |
| Retail | | | 4.9 | | | | 4.2 | | | | 5.1 | | |
| Semiconductors & Components | | | 1.7 | | | | 10.3 | | | | 2.2 | | |
| Technology | | | 4.9 | | | | 4.4 | | | | 0.5 | | |
| Technology Hardware | | | 1.0 | | | | 1.1 | | | | 2.6 | | |
| Telecommunications | | | 5.8 | | | | 11.4 | | | | 4.9 | | |
| Transportation | | | 2.0 | | | | 2.1 | | | | 2.2 | | |
| Subtotal | | | 96.1 | | | | 96.6 | | | | 81.1 | | |
| Foreign Government Obligations | | | — | | | | — | | | | 12.2 | | |
| Supranationals | | | — | | | | — | | | | 1.1 | | |
| US Municipal Bonds | | | — | | | | — | | | | 0.8 | | |
| US Treasury Securities | | | — | | | | — | | | | 1.1 | | |
| Short-Term Investments | | | 3.6 | | | | 2.4 | | | | 3.6 | | |
| Total Investments | | | 99.7 | % | | | 99.0 | % | | | 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.
Lazard Retirement Series, Inc. Statements of Assets and Liabilities
| December 31, 2015 | | Lazard
Retirement
US Strategic
Equity Portfolio | | Lazard
Retirement
US Small-Mid Cap
Equity Portfolio |
| | | | | | | | | |
| ASSETS | | | | | | | | |
| Investments in securities, at value | | $ | 11,558,751 | | | $ | 59,460,520 | |
| Cash | | | — | | | | — | |
| Foreign currency | | | — | | | | — | |
| Receivables for: | | | | | | | | |
| Capital stock sold | | | 9,391 | | | | 102,003 | |
| Dividends and interest | | | 10,102 | | | | 45,066 | |
| Investments sold | | | — | | | | 292,147 | |
| Amount due from Investment Manager (Note 3) | | | 7,914 | | | | — | |
| Gross unrealized appreciation on forward currency contracts | | | — | | | | — | |
| Total assets | | | 11,586,158 | | | | 59,899,736 | |
| | | | | | | | | |
| LIABILITIES | | | | | | | | |
| Payables for: | | | | | | | | |
| Management fees | | | — | | | | 13,376 | |
| Accrued distribution fees | | | 2,469 | | | | 12,818 | |
| Investments purchased | | | — | | | | 145,948 | |
| Capital stock redeemed | | | 17,090 | | | | 174,281 | |
| Gross unrealized depreciation on forward currency contracts | | | — | | | | — | |
| Other accrued expenses and payables | | | 37,632 | | | | 54,002 | |
| Total liabilities | | | 57,191 | | | | 400,425 | |
| Net assets | | $ | 11,528,967 | | | $ | 59,499,311 | |
| | | | | | | | | |
| NET ASSETS | | | | | | | | |
| Paid in capital | | $ | 11,519,789 | | | $ | 54,272,563 | |
| Undistributed (distributions in excess of) net investment income (loss) | | | 10,671 | | | | — | |
| Accumulated net realized gain (loss) | | | 93,487 | | | | 2,921,660 | |
| Net unrealized appreciation (depreciation) on: | | | | | | | | |
| Investments | | | (94,980 | ) | | | 2,305,088 | |
| Foreign currency and forward currency contracts | | | — | | | | — | |
| Net assets | | $ | 11,528,967 | | | $ | 59,499,311 | |
| | | | | | | | | |
| Service Shares | | | | | | | | |
| Net assets | | $ | 11,528,967 | | | $ | 59,499,311 | |
| Shares of capital stock outstanding* | | | 1,083,612 | | | | 8,047,591 | |
| Net asset value, offering and redemption price per share | | $ | 10.64 | | | $ | 7.39 | |
| | | | | | | | | |
| Investor Shares | | | | | | | | |
| Net assets | | | — | | | | — | |
| Shares of capital stock outstanding* | | | — | | | | — | |
| Net asset value, offering and redemption price per share | | | — | | | | — | |
| | | | | | | | | |
| Cost of investments in securities | | $ | 11,653,731 | | | $ | 57,155,432 | |
| Cost of foreign currency | | | — | | | | — | |
| * | $0.001 par value, 2,450,000,000 shares authorized for the Portfolios in total. |
The accompanying notes are an integral part of these financial statements.
| | Lazard
Retirement
International
Equity Portfolio | | Lazard
Retirement
Emerging Markets
Equity Portfolio | | Lazard
Retirement
Global Dynamic
Multi Asset Portfolio |
| | | | | | | | | | | | | |
| | $ | 679,644,478 | | | $ | 903,289,818 | | | $ | 222,345,984 | | |
| | | — | | | | — | | | | 5,790 | | |
| | | 73,703 | | | | 287,882 | | | | 5,828 | | |
| | | | | | | | | | | | | |
| | | 2,827,554 | | | | 10,725,547 | | | | 614,782 | | |
| | | 1,380,278 | | | | 1,175,060 | | | | 750,269 | | |
| | | 63,311 | | | | 19,000 | | | | 2,565 | | |
| | | — | | | | — | | | | — | | |
| | | — | | | | — | | | | 825,666 | | |
| | | 683,989,324 | | | | 915,497,307 | | | | 224,550,884 | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | 436,639 | | | | 783,565 | | | | 109,385 | | |
| | | 145,546 | | | | 162,118 | | | | 46,695 | | |
| | | 328 | | | | 614,346 | | | | 889,813 | | |
| | | 1,128,027 | | | | 606,368 | | | | 351,442 | | |
| | | — | | | | — | | | | 390,249 | | |
| | | 267,011 | | | | 477,641 | | | | 97,109 | | |
| | | 1,977,551 | | | | 2,644,038 | | | | 1,884,693 | | |
| | $ | 682,011,773 | | | $ | 912,853,269 | | | $ | 222,666,191 | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | $ | 599,223,916 | | | $ | 1,183,711,024 | | | $ | 225,278,574 | | |
| | | 316,288 | | | | 2,560,560 | | | | (1,397,040 | ) | |
| | | 823,756 | | | | (26,603,918 | ) | | | (123,040 | ) | |
| | | | | | | | | | | | | |
| | | 81,713,973 | | | | (246,818,362 | ) | | | (1,513,325 | ) | |
| | | (66,160 | ) | | | 3,965 | | | | 421,022 | | |
| | $ | 682,011,773 | | | $ | 912,853,269 | | | $ | 222,666,191 | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | $ | 682,011,773 | | | $ | 754,835,269 | | | $ | 222,666,191 | | |
| | | 55,520,320 | | | | 48,088,227 | | | | 19,352,557 | | |
| | $ | 12.28 | | | $ | 15.70 | | | $ | 11.51 | | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | — | | | $ | 158,018,000 | | | | — | | |
| | | — | | | | 10,186,142 | | | | — | | |
| | | — | | | $ | 15.51 | | | | — | | |
| | | | | | | | | | | | | |
| | $ | 597,930,505 | | | $ | 1,149,942,184 | | | $ | 223,859,309 | | |
| | $ | 73,443 | | | $ | 285,613 | | | $ | 5,808 | | |
Lazard Retirement Series, Inc. Statements of Operations
| For the Year Ended December 31, 2015 | | Lazard
Retirement
US Strategic
Equity Portfolio | | Lazard
Retirement
US Small-Mid Cap
Equity Portfolio |
| | | | | | | | | |
| Investment Income (Loss) | | | | | | | | |
| | | | | | | | | |
| Income | | | | | | | | |
| Dividends | | $ | 193,044 | | | $ | 660,042 | |
| Interest | | | — | | | | — | |
| Total investment income* | | | 193,044 | | | | 660,042 | |
| | | | | | | | | |
| Expenses | | | | | | | | |
| Management fees (Note 3) | | | 88,391 | | | | 479,696 | |
| Distribution fees (Service Shares) | | | 31,576 | | | | 159,909 | |
| Custodian fees | | | 53,692 | | | | 56,505 | |
| Administration fees | | | 45,026 | | | | 55,292 | |
| Professional services | | | 36,169 | | | | 42,676 | |
| Shareholders’ reports | | | 16,255 | | | | 44,242 | |
| Directors’ fees and expenses | | | 4,226 | | | | 6,164 | |
| Shareholders’ services | | | 13,674 | | | | 13,867 | |
| Registration fees | | | 154 | | | | 690 | |
| Other | | | 2,725 | | | | 4,080 | |
| Total gross expenses | | | 291,888 | | | | 863,121 | |
| Management fees waived and expenses reimbursed | | | (146,864 | ) | | | (63,629 | ) |
| Administration fees waived | | | (18,750 | ) | | | — | |
| Total net expenses | | | 126,274 | | | | 799,492 | |
| Net investment income (loss) | | | 66,770 | | | | (139,450 | ) |
| | | | | | | | | |
| Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Forward Currency Contracts | | | | | | | | |
| Net realized gain (loss) on: | | | | | | | | |
| Investments | | | 927,106 | | | | 5,414,421 | |
| Foreign currency and forward currency contracts | | | — | | | | — | |
| Total net realized gain (loss) on investments, foreign currency and forward currency contracts | | | 927,106 | | | | 5,414,421 | |
| Net change in unrealized appreciation (depreciation) on: | | | | | | | | |
| Investments** | | | (1,620,763 | ) | | | (6,818,250 | ) |
| Foreign currency and forward currency contracts | | | — | | | | — | |
| Total net change in unrealized depreciation on investments, foreign currency and forward currency contracts | | | (1,620,763 | ) | | | (6,818,250 | ) |
| Net realized and unrealized gain (loss) on investments, foreign currency and forward currency contracts | | | (693,657 | ) | | | (1,403,829 | ) |
| Net increase (decrease) in net assets resulting from operations | | $ | (626,887 | ) | | $ | (1,543,279 | ) |
| * Net of foreign withholding taxes of | | $ | — | | | $ | 6,786 | |
| ** Includes net change in unrealized foreign capital gains taxes of | | $ | — | | | $ | — | |
The accompanying notes are an integral part of these financial statements.
| | Lazard
Retirement
International
Equity Portfolio | | Lazard
Retirement
Emerging Markets
Equity Portfolio | | Lazard
Retirement
Global Dynamic
Multi Asset Portfolio |
| | | | | | | | | | | | | |
| | $ | 17,991,776 | | | $ | 29,076,131 | | | $ | 3,292,411 | | |
| | | — | | | | — | | | | 1,202,744 | | |
| | | 17,991,776 | | | | 29,076,131 | | | | 4,495,155 | | |
| | | |
| | | 5,333,998 | | | | 10,286,580 | | | | 1,712,579 | | |
| | | 1,777,929 | | | | 2,078,468 | | | | 504,480 | | |
| | | 209,548 | | | | 700,246 | | | | 191,038 | | |
| | | 184,741 | | | | 242,830 | | | | 82,797 | | |
| | | 245,395 | | | | 212,476 | | | | 64,895 | | |
| | | 84,992 | | | | 205,479 | | | | 39,731 | | |
| | | 30,408 | | | | 42,469 | | | | 11,131 | | |
| | | 17,357 | | | | 27,256 | | | | 13,332 | | |
| | | 3,629 | | | | 8,102 | | | | 4,885 | | |
| | | 18,518 | | | | 28,751 | | | | 6,872 | | |
| | | 7,906,515 | | | | 13,832,657 | | | | 2,631,740 | | |
| | | — | | | | — | | | | (516,201 | ) | |
| | | — | | | | — | | | | — | | |
| | | 7,906,515 | | | | 13,832,657 | | | | 2,115,539 | | |
| | | 10,085,261 | | | | 15,243,474 | | | | 2,379,616 | | |
| | | |
| | | |
| | | |
| | | |
| | | 27,645,821 | | | | (23,944,641 | ) | | | (2,343,449 | ) | |
| | | (175,054 | ) | | | (357,521 | ) | | | 1,433,494 | | |
| | | |
| | | 27,470,767 | | | | (24,302,162 | ) | | | (909,955 | ) | |
| | | |
| | | (24,234,668 | ) | | | (208,273,072 | ) | | | (3,181,935 | ) | |
| | | 31,726 | | | | 3,656 | | | | 140,068 | | |
| | | |
| | | (24,202,942 | ) | | | (208,269,416 | ) | | | (3,041,867 | ) | |
| | | |
| | | 3,267,825 | | | | (232,571,578 | ) | | | (3,951,822 | ) | |
| | $ | 13,353,086 | | | $ | (217,328,104 | ) | | $ | (1,572,206 | ) | |
| | $ | 1,991,821 | | | $ | 3,814,212 | | | $ | 174,353 | | |
| | $ | — | | | $ | (165,996 | ) | | $ | — | | |
Lazard Retirement Series, Inc. Statements of Changes in Net Assets
| | | Lazard Retirement
US Strategic Equity Portfolio | | Lazard Retirement
US Small-Mid Cap Equity Portfolio | |
| | | Year Ended
December 31,
2015 | | Year Ended
December 31,
2014 | | Year Ended
December 31,
2015 | | Year Ended
December 31,
2014 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Increase (Decrease) in Net Assets | | | | | | | | | | | | | | | | | | | | | |
| Operations | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | $ | 66,770 | | | | $ | 80,126 | | | | $ | (139,450 | ) | | | $ | (121,840 | ) | |
| Net realized gain (loss) on investments, foreign currency and forward currency contracts | | | | 927,106 | | | | | 1,290,358 | | | | | 5,414,421 | | | | | 8,177,018 | | |
| Net change in unrealized depreciation on investments, foreign currency and forward currency contracts | | | | (1,620,763 | ) | | | | (35,342 | ) | | | | (6,818,250 | ) | | | | (1,686,801 | ) | |
| Net increase (decrease) in net assets resulting from operations | | | | (626,887 | ) | | | | 1,335,142 | | | | | (1,543,279 | ) | | | | 6,368,377 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Distributions to shareholders | | | | | | | | | | | | | | | | | | | | | |
| From net investment income | | | | | | | | | | | | | | | | | | | | | |
| Service Shares | | | | (52,360 | ) | | | | (77,201 | ) | | | | — | | | | | — | | |
| Investor Shares | | | | — | | | | | — | | | | | — | | | | | — | | |
| From net realized gains | | | | | | | | | | | | | | | | | | | | | |
| Service Shares | | | | (792,085 | ) | | | | (1,404,900 | ) | | | | (4,465,229 | ) | | | | (10,008,703 | ) | |
| Investor Shares | | | | — | | | | | — | | | | | — | | | | | — | | |
| Net decrease in net assets resulting from distributions | | | | (844,445 | ) | | | | (1,482,101 | ) | | | | (4,465,229 | ) | | | | (10,008,703 | ) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Capital stock transactions | | | | | | | | | | | | | | | | | | | | | |
| Net proceeds from sales | | | | | | | | | | | | | | | | | | | | | |
| Service Shares | | | | 5,026,315 | | | | | 5,323,595 | | | | | 14,432,469 | | | | | 13,987,149 | | |
| Investor Shares | | | | — | | | | | — | | | | | — | | | | | — | | |
| Net proceeds from reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | |
| Service Shares | | | | 844,445 | | | | | 1,482,100 | | | | | 4,465,229 | | | | | 10,008,703 | | |
| Investor Shares | | | | — | | | | | — | | | | | — | | | | | — | | |
| Cost of shares redeemed | | | | | | | | | | | | | | | | | | | | | |
| Service Shares | | | | (5,261,809 | ) | | | | (3,211,241 | ) | | | | (16,880,480 | ) | | | | (15,787,491 | ) | |
| Investor Shares | | | | — | | | | | — | | | | | — | | | | | — | | |
| Net increase in net assets from capital stock transactions | | | | 608,951 | | | | | 3,594,454 | | | | | 2,017,218 | | | | | 8,208,361 | | |
| Total increase (decrease) in net assets | | | | (862,381 | ) | | | | 3,447,495 | | | | | (3,991,290 | ) | | | | 4,568,035 | | |
| Net assets at beginning of year | | | | 12,391,348 | | | | | 8,943,853 | | | | | 63,490,601 | | | | | 58,922,566 | | |
| Net assets at end of year* | | | $ | 11,528,967 | | | | $ | 12,391,348 | | | | $ | 59,499,311 | | | | $ | 63,490,601 | | |
| * Includes undistributed (distributions in excess of) net investment income (loss) of | | | $ | 10,671 | | | | $ | — | | | | $ | — | | | | $ | — | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Shares issued and redeemed | | | | | | | | | | | | | | | | | | | | | |
| Service Shares | | | | | | | | | | | | | | | | | | | | | |
| Shares outstanding at beginning of year | | | | 1,020,099 | | | | | 743,845 | | | | | 7,764,268 | | | | | 6,761,491 | | |
| Shares sold | | | | 420,624 | | | | | 414,265 | | | | | 1,725,627 | | | | | 1,591,831 | | |
| Shares issued to shareholders from reinvestment of distributions | | | | 80,270 | | | | | 120,802 | | | | | 605,900 | | | | | 1,207,615 | | |
| Shares redeemed | | | | (437,381 | ) | | | | (258,813 | ) | | | | (2,048,204 | ) | | | | (1,796,669 | ) | |
| Net increase | | | | 63,513 | | | | | 276,254 | | | | | 283,323 | | | | | 1,002,777 | | |
| Shares outstanding at end of year | | | | 1,083,612 | | | | | 1,020,099 | | | | | 8,047,591 | | | | | 7,764,268 | | |
| Investor Shares | | | | | | | | | | | | | | | | | | | | | |
| Shares outstanding at beginning of year | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | | | |
| Shares issued to shareholders from reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | | | |
| Net decrease | | | | | | | | | | | | | | | | | | | | | |
| Shares outstanding at end of year | | | | | | | | | | | | | | | | | | | | | |
The accompanying notes are an integral part of these financial statements.
| | Lazard Retirement
International Equity Portfolio | | Lazard Retirement
Emerging Markets Equity Portfolio | | Lazard Retirement
Global Dynamic Multi Asset Portfolio | |
| | Year Ended
December 31,
2015 | | Year Ended
December 31,
2014 | | Year Ended
December 31,
2015 | | | Year Ended
December 31,
2014 | | Year Ended
December 31,
2015 | | Year Ended
December 31,
2014 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 10,085,261 | | | | $ | 10,965,538 | | | | $ | 15,243,474 | | | | | $ | 19,490,320 | | | | $ | 2,379,616 | | | | $ | 1,684,195 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 27,470,767 | | | | | 29,508,676 | | | | | (24,302,162 | ) | | | | | 11,690,151 | | | | | (909,955 | ) | | | | 8,973,244 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (24,202,942 | ) | | | | (69,476,408 | ) | | | | (208,269,416 | ) | | | | | (84,430,632 | ) | | | | (3,041,867 | ) | | | | (6,893,694 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 13,353,086 | | | | | (29,002,194 | ) | | | | (217,328,104 | ) | | | | | (53,250,161 | ) | | | | (1,572,206 | ) | | | | 3,763,745 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (11,274,502 | ) | | | | (10,814,146 | ) | | | | (9,782,582 | ) | | | | | (15,082,247 | ) | | | | — | | | | | (968,080 | ) | | |
| | | | — | | | | | — | | | | | (2,497,132 | ) | | | | | (4,806,075 | ) | | | | — | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (12,022,244 | ) | | | | — | | | | | (2,236,910 | ) | | | | | (8,043,967 | ) | | | | (5,417,685 | ) | | | | (9,750,513 | ) | | |
| | | | — | | | | | — | | | | | (517,868 | ) | | | | | (2,288,572 | ) | | | | — | | | | | — | | | |
| | | | (23,296,746 | ) | | | | (10,814,146 | ) | | | | (15,034,492 | ) | | | | | (30,220,861 | ) | | | | (5,417,685 | ) | | | | (10,718,593 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 108,614,054 | | | | | 111,475,938 | | | | | 201,022,412 | | | | | | 208,283,102 | | | | | 78,547,519 | | | | | 89,974,898 | | | |
| | | | — | | | | | — | | | | | 29,579,712 | | | | | | 63,373,754 | | | | | — | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 23,296,746 | | | | | 10,814,146 | | | | | 12,019,492 | | | | | | 23,126,213 | | | | | 5,417,685 | | | | | 10,718,593 | | | |
| | | | — | | | | | — | | | | | 3,015,000 | | | | | | 7,094,647 | | | | | — | | | | | — | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | (130,279,566 | ) | | | | (81,661,844 | ) | | | | (127,926,800 | ) | | | | | (154,832,744 | ) | | | | (30,978,537 | ) | | | | (16,829,184 | ) | | |
| | | | — | | | | | — | | | | | (62,096,136 | ) | | | | | (80,535,191 | ) | | | | — | | | | | — | | | |
| | | | 1,631,234 | | | | | 40,628,240 | | | | | 55,613,680 | | | | | | 66,509,781 | | | | | 52,986,667 | | | | | 83,864,307 | | | |
| | | | (8,312,426 | ) | | | | 811,900 | | | | | (176,748,916 | ) | | | | | (16,961,241 | ) | | | | 45,996,776 | | | | | 76,909,459 | | | |
| | | | 690,324,199 | | | | | 689,512,299 | | | | | 1,089,602,185 | | | | | | 1,106,563,426 | | | | | 176,669,415 | | | | | 99,759,956 | | | |
| | | $ | 682,011,773 | | | | $ | 690,324,199 | | | | $ | 912,853,269 | | | | | $ | 1,089,602,185 | | | | $ | 222,666,191 | | | | $ | 176,669,415 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 316,288 | | | | $ | 1,635,320 | | | | $ | 2,560,560 | | | | | $ | (56,603 | ) | | | $ | (1,397,040 | ) | | | $ | (412,253 | ) | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 55,231,355 | | | | | 52,011,272 | | | | | 43,075,583 | | | | | | 39,349,938 | | | | | 14,895,028 | | | | | 8,108,458 | | | |
| | | | 8,242,943 | | | | | 8,563,877 | | | | | 11,097,828 | | | | | | 9,627,978 | | | | | 6,588,954 | | | | | 7,245,330 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 1,911,335 | | | | | 847,713 | | | | | 758,566 | | | | | | 1,131,344 | | | | | 476,062 | | | | | 893,771 | | | |
| | | | (9,865,313 | ) | | | | (6,191,507 | ) | | | | (6,843,750 | ) | | | | | (7,033,677 | ) | | | | (2,607,487 | ) | | | | (1,352,531 | ) | | |
| | | | 288,965 | | | | | 3,220,083 | | | | | 5,012,644 | | | | | | 3,725,645 | | | | | 4,457,529 | | | | | 6,786,570 | | | |
| | | | 55,520,320 | | | | | 55,231,355 | | | | | 48,088,227 | | | | | | 43,075,583 | | | | | 19,352,557 | | | | | 14,895,028 | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | 11,645,766 | | | | | | 12,235,116 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | 1,623,022 | | | | | | 2,840,650 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | 192,541 | | | | | | 350,893 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | (3,275,187 | ) | | | | | (3,780,893 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | (1,459,624 | ) | | | | | (589,350 | ) | | | | | | | | | | | | |
| | | | | | | | | | | | | | 10,186,142 | | | | | | 11,645,766 | | | | | | | | | | | | | |
Lazard Retirement Series, Inc. Financial Highlights
LAZARD RETIREMENT US STRATEGIC EQUITY PORTFOLIO
| | | | | | | | | | | | | | | | | |
| Selected data for a share of capital | | Year Ended | |
| stock outstanding throughout each year | | 12/31/15 | | | 12/31/14 | | | 12/31/13 | | | 12/31/12 | | | 12/31/11 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Service Shares | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 12.15 | | | $ | 12.02 | | | $ | 10.44 | | | $ | 9.26 | | | $ | 9.18 | | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | 0.06 | | | | 0.09 | | | | 0.11 | | | | 0.12 | | | | 0.10 | | |
| Net realized and unrealized gain (loss) | | | (0.73 | ) | | | 1.68 | | | | 2.80 | | | | 1.18 | | | | 0.08 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | (0.67 | ) | | | 1.77 | | | | 2.91 | | | | 1.30 | | | | 0.18 | | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.05 | ) | | | (0.09 | ) | | | (0.11 | ) | | | (0.12 | ) | | | (0.10 | ) | |
| Net realized gains | | | (0.79 | ) | | | (1.55 | ) | | | (1.22 | ) | | | — | | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.84 | ) | | | (1.64 | ) | | | (1.33 | ) | | | (0.12 | ) | | | (0.10 | ) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, end of year | | $ | 10.64 | | | $ | 12.15 | | | $ | 12.02 | | | $ | 10.44 | | | $ | 9.26 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total Return (a) | | | –5.44 | % | | | 14.71 | % | | | 28.07 | % | | | 14.01 | % | | | 1.96 | % | |
| | | | | | | | | | | | | | | | | | | | | | |
| Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (in thousands) | | $ | 11,529 | | | $ | 12,391 | | | $ | 8,944 | | | $ | 6,702 | | | $ | 6,008 | | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | |
| Net expenses | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % | |
| Gross expenses | | | 2.31 | % | | | 2.59 | % | | | 2.88 | % | | | 3.23 | % | | | 3.37 | % | |
| Net investment income | | | 0.53 | % | | | 0.79 | % | | | 0.97 | % | | | 1.16 | % | | | 1.04 | % | |
| Portfolio turnover rate | | | 86 | % | | | 72 | % | | | 66 | % | | | 59 | % | | | 50 | % | |
| | |
| (a) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Performance information does not reflect the fees and charges imposed by participating insurance companies at the separate account level, and such charges will have the effect of reducing performance. |
The accompanying notes are an integral part of these financial statements.
LAZARD RETIREMENT US SMALL-MID CAP EQUITY PORTFOLIO
| | | | |
| Selected data for a share of capital | | Year Ended | |
| stock outstanding throughout each year | | 12/31/15 | | | 12/31/14 | | | 12/31/13 | | | 12/31/12 | | | 12/31/11 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Service Shares | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 8.18 | | | $ | 8.71 | | | $ | 7.30 | | | $ | 9.26 | | | $ | 11.04 | | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | |
| Net investment loss | | | (0.02 | ) | | | (0.02 | ) | | | (0.03 | ) | | | (0.01 | ) | | | (0.01 | ) | |
| Net realized and unrealized gain (loss) | | | (0.19 | ) | | | 0.94 | | | | 2.53 | | | | 0.95 | | | | (1.01 | ) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | (0.21 | ) | | | 0.92 | | | | 2.50 | | | | 0.94 | | | | (1.02 | ) | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | |
| Net realized gains | | | (0.58 | ) | | | (1.45 | ) | | | (1.09 | ) | | | (2.90 | ) | | | (0.76 | ) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.58 | ) | | | (1.45 | ) | | | (1.09 | ) | | | (2.90 | ) | | | (0.76 | ) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, end of year | | $ | 7.39 | | | $ | 8.18 | | | $ | 8.71 | | | $ | 7.30 | | | $ | 9.26 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total Return (a) | | | –2.38 | % | | | 11.03 | % | | | 35.08 | % | | | 10.38 | % | | | –9.07 | % | |
| | | | | | | | | | | | | | | | | | | | | | |
| Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (in thousands) | | $ | 59,499 | | | $ | 63,491 | | | $ | 58,923 | | | $ | 46,978 | | | $ | 180,524 | | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | |
| Net expenses | | | 1.25 | % | | | 1.25 | % | | | 1.25 | % | | | 1.20 | % | | | 1.15 | % | |
| Gross expenses | | | 1.35 | % | | | 1.32 | % | | | 1.35 | % | | | 1.20 | % | | | 1.15 | % | |
| Net investment loss | | | –0.22 | % | | | –0.20 | % | | | –0.33 | % | | | –0.06 | % | | | –0.16 | % | |
| Portfolio turnover rate | | | 89 | % | | | 92 | % | | | 101 | % | | | 74 | % | | | 98 | % | |
| | |
| (a) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Performance information does not reflect the fees and charges imposed by participating insurance companies at the separate account level, and such charges will have the effect of reducing performance. |
The accompanying notes are an integral part of these financial statements.
LAZARD RETIREMENT INTERNATIONAL EQUITY PORTFOLIO
| | | | | | | | | | | | | | | | | |
| Selected data for a share of capital | | Year Ended | |
| stock outstanding throughout each year | | 12/31/15 | | | 12/31/14 | | | 12/31/13 | | | 12/31/12 | | | 12/31/11 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Service Shares | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 12.50 | | | $ | 13.26 | | | $ | 11.12 | | | $ | 9.33 | | | $ | 10.28 | | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | 0.19 | | | | 0.21 | | | | 0.17 | | | | 0.19 | | | | 0.18 | | |
| Net realized and unrealized gain (loss) | | | 0.02 | | | | (0.76 | ) | | | 2.13 | | | | 1.78 | | | | (0.93 | ) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 0.21 | | | | (0.55 | ) | | | 2.30 | | | | 1.97 | | | | (0.75 | ) | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.21 | ) | | | (0.21 | ) | | | (0.16 | ) | | | (0.18 | ) | | | (0.20 | ) | |
| Net realized gains | | | (0.22 | ) | | | — | | | | — | | | | — | | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.43 | ) | | | (0.21 | ) | | | (0.16 | ) | | | (0.18 | ) | | | (0.20 | ) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, end of year | | $ | 12.28 | | | $ | 12.50 | | | $ | 13.26 | | | $ | 11.12 | | | $ | 9.33 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total Return (a) | | | 1.75 | % | | | –4.21 | % | | | 20.76 | % | | | 21.11 | % | | | –7.27 | % | |
| | | | | | | | | | | | | | | | | | | | | | |
| Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (in thousands) | | $ | 682,012 | | | $ | 690,324 | | | $ | 689,512 | | | $ | 592,437 | | | $ | 513,882 | | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | |
| Net expenses | | | 1.11 | % | | | 1.09 | % | | | 1.10 | % | | | 1.10 | % | | | 1.12 | % | |
| Gross expenses | | | 1.11 | % | | | 1.09 | % | | | 1.10 | % | | | 1.10 | % | | | 1.12 | % | |
| Net investment income | | | 1.42 | % | | | 1.59 | % | | | 1.41 | % | | | 1.80 | % | | | 1.89 | % | |
| Portfolio turnover rate | | | 37 | % | | | 34 | % | | | 40 | % | | | 43 | % | | | 39 | % | |
| | |
| (a) | Total returns reflect reinvestment of all dividends and distributions, if any. Performance information does not reflect the fees and charges imposed by participating insurance companies at the separate account level, and such charges will have the effect of reducing performance. |
The accompanying notes are an integral part of these financial statements.
LAZARD RETIREMENT EMERGING MARKETS EQUITY PORTFOLIO
| | | | |
| Selected data for a share of capital | | Year Ended | |
| stock outstanding throughout each year | | 12/31/15 | | | 12/31/14 | | | 12/31/13 | | | 12/31/12 | | | 12/31/11 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Service Shares | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 19.96 | | | $ | 21.51 | | | $ | 22.22 | | | $ | 18.71 | | | $ | 23.33 | | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (a) | | | 0.27 | | | | 0.37 | | | | 0.31 | | | | 0.33 | | | | 0.44 | | |
| Net realized and unrealized gain (loss) | | | (4.27 | ) | | | (1.35 | ) | | | (0.58 | ) | | | 3.78 | | | | (4.64 | ) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | (4.00 | ) | | | (0.98 | ) | | | (0.27 | ) | | | 4.11 | | | | (4.20 | ) | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.21 | ) | | | (0.37 | ) | | | (0.31 | ) | | | (0.35 | ) | | | (0.42 | ) | |
| Net realized gains | | | (0.05 | ) | | | (0.20 | ) | | | (0.13 | ) | | | (0.25 | ) | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.26 | ) | | | (0.57 | ) | | | (0.44 | ) | | | (0.60 | ) | | | (0.42 | ) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, end of year | | $ | 15.70 | | | $ | 19.96 | | | $ | 21.51 | | | $ | 22.22 | | | $ | 18.71 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total Return (b) | | | –20.05 | % | | | –4.64 | % | | | –1.24 | % | | | 22.05 | % | | | –18.00 | % | |
| | | | | | | | | | | | | | | | | | | | | | |
| Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (in thousands) | | $ | 754,835 | | | $ | 859,747 | | | $ | 846,233 | | | $ | 734,699 | | | $ | 580,370 | | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | |
| Net expenses | | | 1.39 | % | | | 1.38 | % | | | 1.38 | % | | | 1.39 | % | | | 1.42 | % | |
| Gross expenses | | | 1.39 | % | | | 1.38 | % | | | 1.38 | % | | | 1.39 | % | | | 1.42 | % | |
| Net investment income | | | 1.43 | % | | | 1.66 | % | | | 1.42 | % | | | 1.57 | % | | | 2.04 | % | |
| Portfolio turnover rate | | | 9 | % | | | 12 | % | | | 14 | % | | | 23 | % | | | 19 | % | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Selected data for a share of capital | | Year Ended | |
| stock outstanding throughout each year | | 12/31/15 | | | 12/31/14 | | | 12/31/13 | | | 12/31/12 | | | 12/31/11 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Investor Shares | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of year | | $ | 19.74 | | | $ | 21.28 | | | $ | 21.99 | | | $ | 18.52 | | | $ | 23.17 | | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (a) | | | 0.32 | | | | 0.42 | | | | 0.37 | | | | 0.38 | | | | 0.50 | | |
| Net realized and unrealized gain (loss) | | | (4.25 | ) | | | (1.34 | ) | | | (0.59 | ) | | | 3.74 | | | | (4.62 | ) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | (3.93 | ) | | | (0.92 | ) | | | (0.22 | ) | | | 4.12 | | | | (4.12 | ) | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.25 | ) | | | (0.42 | ) | | | (0.36 | ) | | | (0.40 | ) | | | (0.53 | ) | |
| Net realized gains | | | (0.05 | ) | | | (0.20 | ) | | | (0.13 | ) | | | (0.25 | ) | | | — | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.30 | ) | | | (0.62 | ) | | | (0.49 | ) | | | (0.65 | ) | | | (0.53 | ) | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net asset value, end of year | | $ | 15.51 | | | $ | 19.74 | | | $ | 21.28 | | | $ | 21.99 | | | $ | 18.52 | | |
| | | | | | | | | | | | | | | | | | | | | | |
| Total Return (b) | | | –19.90 | % | | | –4.38 | % | | | –1.01 | % | | | 22.34 | % | | | –17.79 | % | |
| | | | | | | | | | | | | | | | | | | | | | |
| Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | | | |
| Net assets, end of year (in thousands) | | $ | 158,018 | | | $ | 229,855 | | | $ | 260,330 | | | $ | 282,596 | | | $ | 244,320 | | |
| Ratios to average net assets: | | | | | | | | | | | | | | | | | | | | | |
| Net expenses | | | 1.15 | % | | | 1.14 | % | | | 1.14 | % | | | 1.14 | % | | | 1.17 | % | |
| Gross expenses | | | 1.15 | % | | | 1.14 | % | | | 1.14 | % | | | 1.14 | % | | | 1.17 | % | |
| Net investment income | | | 1.71 | % | | | 1.91 | % | | | 1.71 | % | | | 1.85 | % | | | 2.31 | % | |
| Portfolio turnover rate | | | 9 | % | | | 12 | % | | | 14 | % | | | 23 | % | | | 19 | % | |
| | |
| (a) | Net investment income has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Performance information does not reflect the fees and charges imposed by participating insurance companies at the separate account level, and such charges will have the effect of reducing performance. |
The accompanying notes are an integral part of these financial statements.
LAZARD RETIREMENT GLOBAL DYNAMIC MULTI ASSET PORTFOLIO
| Selected data for a share of capital | | Year Ended | | For the Period
4/30/12* to | |
| stock outstanding throughout each period | | 12/31/15 | | | 12/31/14 | | | 12/31/13 | | | 12/31/12 | |
| | | | | | | | | | | | | | | | | | | | |
| Service Shares | | | | | | | | | | | | | | | | | | | |
| Net asset value, beginning of period | | $ | 11.86 | | | $ | 12.30 | | | $ | 10.54 | | | | $ | 10.00 | | | |
| Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | 0.13 | | | | 0.11 | | | | 0.06 | | | | | 0.03 | | | |
| Net realized and unrealized gain (loss) | | | (0.19 | ) | | | 0.23 | | | | 1.99 | | | | | 0.54 | | | |
| | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | (0.06 | ) | | | 0.34 | | | | 2.05 | | | | | 0.57 | | | |
| Less distributions from: | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | — | | | | (0.07 | ) | | | (0.04 | ) | | | | — | (c) | | |
| Net realized gains | | | (0.29 | ) | | | (0.71 | ) | | | (0.25 | ) | | | | (0.03 | ) | | |
| | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.29 | ) | | | (0.78 | ) | | | (0.29 | ) | | | | (0.03 | ) | | |
| | | | | | | | | | | | | | | | | | | | |
| Net asset value, end of period | | $ | 11.51 | | | $ | 11.86 | | | $ | 12.30 | | | | $ | 10.54 | | | |
| | | | | | | | | | | | | | | | | | | | |
| Total Return (a) | | | –0.44 | % | | | 2.70 | % | | | 19.49 | % | | | | 5.74 | % | | |
| | | | | | | | | | | | | | | | | | | | |
| Ratios and Supplemental Data: | | | | | | | | | | | | | | | | | | | |
| Net assets, end of period (in thousands) | | $ | 222,666 | | | $ | 176,669 | | | $ | 99,760 | | | | $ | 30,262 | | | |
| Ratios to average net assets (b): | | | | | | | | | | | | | | | | | | | |
| Net expenses | | | 1.05 | % | | | 1.05 | % | | | 1.05 | % | | | | 1.05 | % | | |
| Gross expenses | | | 1.31 | % | | | 1.33 | % | | | 1.70 | % | | | | 3.80 | % | | |
| Net investment income | | | 1.18 | % | | | 1.19 | % | | | 1.01 | % | | | | 1.03 | % | | |
| Portfolio turnover rate | | | 114 | % | | | 105 | % | | | 62 | % | | | | 45 | % | | |
| | |
| * | The Portfolio commenced operations on April 30, 2012. |
| (a) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Performance information does not reflect the fees and charges imposed by participating insurance companies at the separate account level, and such charges will have the effect of reducing performance. A period of less than one year is not annualized. |
| (b) | Annualized for a period of less than one year. |
| (c) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
Lazard Retirement Series, Inc. Notes to Financial Statements December 31, 2015
1. Organization
Lazard Retirement Series, Inc. (the “Fund”) was incorporated in Maryland on February 13, 1997 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Fund, comprised of twenty three no-load portfolios (each referred to as a “Portfolio”), is currently offered only to separate accounts established by insurance companies to fund variable annuity contracts and variable life insurance policies. Portfolio shares may also be offered to certain qualified pension and retirement plans and accounts permitting accumulation of assets on a tax-deferred basis. Effective January 31, 2006, the Fund designated its existing class of shares as Service Shares and commenced offering Investor Shares. Investor Shares and Service Shares are identical, except as to the services offered to and expenses borne by each class of shares. As of December 31, 2015, only Lazard Retirement Emerging Markets Equity Portfolio had issued Investor Shares. Currently, only the following five Portfolios, each of which is “diversified”, as defined in the 1940 Act, are offered: Lazard Retirement US Strategic Equity Portfolio (“US Strategic Equity Portfolio”), Lazard Retirement US Small-Mid Cap Equity Portfolio (“US Small-Mid Cap Equity Portfolio”), Lazard Retirement International Equity Portfolio (“International Equity Portfolio”), Lazard Retirement Emerging Markets Equity Portfolio (“Emerging Markets Equity Portfolio”), and Lazard Retirement Global Dynamic Multi Asset Portfolio (“Global Dynamic Multi Asset Portfolio”). Each of the other eighteen Portfolios had not commenced operations as of December 31, 2015.
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 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—Net asset value (“NAV”) per share for each class of each Portfolio is determined on each day the New York Stock Exchange (“NYSE”) is open for business, generally as of the close of regular
session trading on the NYSE (normally 4:00 p.m. Eastern time, the “Regular Closing Time”). When trading on the NYSE is unexpectedly closed prior to the Regular Closing Time, or an earlier scheduled close (such as on certain days around holidays when the NYSE is scheduled to close before 4:00 p.m.), and remains closed through the time of the Regular Closing Time (or an earlier scheduled close), the NAV of each class of each Portfolio may nonetheless be calculated as of the Regular Closing Time (or an earlier scheduled close) if, in the judgment of the Investment Manager, there is sufficient trading in other markets between the unexpected close and the Regular Closing Time (or an earlier scheduled close) for securities for which the NYSE is usually considered the primary market. NAV per share 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.
Market values for securities listed on the NYSE, NASDAQ national market or other US or foreign exchanges or markets are generally based on the last reported sales price on the exchange or market on which the security is principally traded on each valuation date; securities not traded on the valuation date are valued at the most recent quoted bid price. The Fund values NASDAQ-traded securities at the NASDAQ Official Closing Price, which may not be the last reported sales price in certain instances. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s NAV.
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.
The Valuation Committee of the Investment Manager, which meets periodically and acts pursuant to delegated authority from the Board of Directors (the “Board”), may evaluate a variety of factors to determine the fair value of securities for which market quo-
tations 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 managers/analysts also will be considered.
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 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. 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 effect of using fair value pricing is that the NAV of a Portfolio will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.
(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income is recorded on the ex-dividend date except for certain dividends from foreign securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by the Portfolio. Interest income is accrued daily. The Portfolios amortize pre-
miums and accrete discounts on fixed-income securities using the effective yield method. During the year ended December 31, 2015, only Global Dynamic Multi Asset Portfolio traded in fixed-income securities.
The Portfolios may be subject to taxes imposed by foreign countries in which they invest. Such taxes are generally based upon income earned or capital gains (realized or unrealized). The Portfolios accrue and apply 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 unrealized) from the applicable portfolio securities.
As a result of several court cases in certain countries across the European Union, the International Equity Portfolio has filed additional tax reclaims for previously withheld taxes on dividends earned in those countries. These additional 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 the International Equity 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.
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. Net realized gain (loss) on foreign currency and forward currency contracts represents 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 reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.
A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of the foreign currency relative to the US dollar.
The US dollar value of forward currency contracts is determined using quotations provided by an independent pricing service. Daily fluctuations in the value of such contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, a 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.
During the year ended December 31, 2015, only Global Dynamic Multi Asset Portfolio traded in forward currency contracts.
(d) Federal Income Taxes—The Fund’s policy is to continue to have each Portfolio qualify as a regulated investment company under Subchapter M of the Internal Revenue Code (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.
The Regulated Investment Company Modernization Act of 2010 (the “RIC Modernization Act”) includes numerous provisions that generally became effective for taxable years beginning after December 22, 2010. Among the provisions, net capital losses may be carried forward indefinitely, and their character is retained as short-term or long-term. Previously, net capital losses were carried forward for eight years and
treated as short-term losses. The RIC Modernization Act also requires that post-enactment net capital losses be used before pre-enactment net capital losses. As a result, pre-enactment capital loss carryforwards may expire unused.
At December 31, 2015, the following Portfolio 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 Equity | | $ | 2,845,581 | | | $ | 21,282,968 | |
Under current tax law, certain late year 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, 2015, the following Portfolio elected to defer such losses as follows:
| Portfolio | | Post-October
Capital Loss
Deferral | | Late Year
Ordinary Loss
Deferral |
| | | | | | | | | |
| Global Dynamic Multi Asset | | $ | — | | | $ | (786,134 | ) |
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 returns filed for open tax years (2012-2014), or expected to be taken in the Portfolios’ 2015 tax returns.
(e) Dividends and Distributions—Each Portfolio intends to declare and to pay dividends annually from net investment income, if any. 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; however, to avoid taxation, a second distribution may be required. 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 reclassifica-
tions, are primarily due to differing treatments of foreign currency transactions, wash sales, passive foreign investment companies and distributions from real estate investment trusts and partnerships. The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:
| Portfolio | | Paid in
Capital | | Undistributed
(Distributions in
Excess of) Net
Investment
Income | | Accumulated
Net Realized
Gain (Loss) | |
| | | | | | | | | | | | | | |
| US Strategic Equity | | $ | 1 | | | $ | (3,739 | ) | | $ | 3,738 | | |
| US Small-Mid Cap Equity | | | (2 | ) | | | 139,450 | | | | (139,448 | ) | |
| International Equity | | | 1 | | | | (129,791 | ) | | | 129,790 | | |
| Emerging Markets Equity | | | (11,275 | ) | | | (346,597 | ) | | | 357,872 | | |
| Global Dynamic Multi Asset | | | (1,782,687 | ) | | | (3,364,403 | ) | | | 5,147,090 | | |
The tax character of dividends and distributions paid during the years ended December 31, were as follows:
| | | Ordinary Income | | | Long-Term Capital Gain | |
| Portfolio | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | | | | | | | | | | | | | | |
| US Strategic Equity | | $ | 66,454 | | | $ | 267,265 | | | $ | 777,991 | | | $ | 1,214,836 | |
| US Small-Mid Cap Equity | | | 2,258,175 | | | | 3,409,319 | | | | 2,207,054 | | | | 6,599,384 | |
| International Equity | | | 11,274,502 | | | | 10,814,146 | | | | 12,022,244 | | | | — | |
| Emerging Markets Equity | | | 12,280,066 | | | | 19,263,861 | | | | 2,754,426 | | | | 10,957,000 | |
| Global Dynamic Multi Asset | | | 685,717 | | | | 5,833,472 | | | | 4,731,968 | | | | 4,885,121 | |
At December 31, 2015, the components of distributable earnings, on a tax basis, were as follows:
| Portfolio | | Undistributed
Ordinary Income
/Deferred Late
Year Ordinary
Losses | | Undistributed
Long-Term
Capital Gain
/Capital Loss
Carryover | | Net Unrealized
Appreciation
(Depreciation)
Including Foreign
Currency | |
| | | | | | | | | | | | | | |
| US Strategic Equity | | $ | 51,005 | | | $ | 65,333 | | | $ | (107,160 | ) | |
| US Small-Mid Cap Equity | | | 93,259 | | | | 3,078,333 | | | | 2,055,156 | | |
| International Equity | | | 1,002,366 | | | | 1,500,249 | | | | 80,285,242 | | |
| Emerging Markets Equity | | | 2,560,282 | | | | (24,128,549 | ) | | | (249,289,488 | ) | |
| Global Dynamic Multi Asset | | | (786,134 | ) | | | 911,376 | | | | (2,737,625 | ) | |
(f) Allocation of Expenses—Expenses not directly chargeable to a specific Portfolio are allocated among all Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Service Shares. The Portfolios’ 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.
(g) 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 from operations during the reporting period. Actual results could differ from those estimates.
3. Investment Management, Administration, Distribution and Transfer Agency Agreements
The Fund, on behalf of the Portfolios, has entered into an investment management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager regularly provides each Portfolio with investment research, advice and supervision and furnishes continuously an investment program for each Portfolio consistent with its investment objective and policies, including the purchase, retention and disposition of securities. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of its average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:
| Portfolio | | Annual Rate | |
| | | | | | |
| US Strategic Equity | | | 0.70 | % | |
| US Small-Mid Cap Equity | | | 0.75 | | |
| International Equity | | | 0.75 | | |
| Emerging Markets Equity | | | 1.00 | | |
| Global Dynamic Multi Asset | | | 0.85 | | |
The Investment Manager has voluntarily agreed to reduce its fees and, if necessary, reimburse the Portfolios through May 1, 2016 if annualized operating
expenses (exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” and extraordinary expenses) exceed the following percentages of average daily net assets for the respective shares:
| Portfolio | | Service Shares | | Investor Shares | |
| | | | | | | | | | |
| US Strategic Equity | | | 1.00 | % | | | N/A | | |
| US Small-Mid Cap Equity | | | 1.25 | | | | N/A | | |
| International Equity (a) | | | 1.10 | | | | N/A | | |
| Emerging Markets Equity | | | 1.55 | | | | 1.30 | % | |
| Global Dynamic Multi Asset | | | 1.05 | | | | N/A | | |
(a) From January 1, 2015 to February 28, 2015, percentage was 1.25%.
During the year ended December 31, 2015, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:
| | | Service Shares | |
| Portfolio | | Management
Fees Waived | | | Expenses
Reimbursed | |
| | | | | | | | | | |
| US Strategic Equity | | $ | 88,391 | | | $ | 58,473 | | |
| US Small-Mid Cap Equity | | | 63,629 | | | | — | | |
| Global Dynamic Multi Asset | | | 516,201 | | | | — | | |
The Fund has entered into an administration agreement with State Street to provide certain administrative services. Each Portfolio bears the cost of such services at a fixed annual rate of $42,500, plus 0.02% of average daily net assets up to $1 billion and 0.01% of average daily net assets over $1 billion. State Street has agreed to waive up to $18,750 of the $42,500 annual fee for the US Strategic Equity Portfolio until the Portfolio’s net assets reach $25 million. During the year ended December 31, 2015, State Street waived $18,750 of its fee for the US Strategic Equity Portfolio.
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 the cost of printing and mailing prospectuses to potential investors and certain expenses in connection with the offering of Portfolio shares.
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 Service Shares, for distribution and servicing of accounts. The Distributor may make payments to participating insurance companies, certain financial institutions, securities dealers and other industry professionals for providing these services.
BFDS is the Fund’s transfer and dividend disbursing agent. For its services, BFDS receives a monthly fee computed on the basis of the number of shareholder accounts it maintains, subject to a minimum fee amount per share class in each Portfolio, and is reimbursed for certain out-of-pocket expenses. BFDS has agreed to waive the monthly minimum fee for the first six months after a new Portfolio or share class has commenced operations.
4. Directors’ Compensation
Certain Directors of the Fund are officers of the Investment Manager. Each Director who is not an affiliated person of the Investment Manager or any of its affiliates is paid by the Fund, The Lazard Funds, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc. (collectively with the Fund, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, and Lazard Alternative Emerging Markets 1099 Fund, a closed-end registered management investment company advised by an affiliate of the Investment Manager: (1) an annual retainer of $190,000, (2) an additional annual fee of $20,000 to the lead Independent Director, and (3) an additional annual fee of $10,000 to the Audit Committee Chair. The Directors also are 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. The Statements of Operations show the Directors’ fees and expenses paid by each Portfolio.
5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2015 were as follows:
| Portfolio | | Purchases | | | Sales | |
| | | | | | | | | | |
| US Strategic Equity | | $ | 10,364,722 | | | $ | 10,828,428 | | |
| US Small-Mid Cap Equity | | | 54,459,808 | | | | 56,439,456 | | |
| International Equity | | | 247,453,609 | | | | 248,294,834 | | |
| Emerging Markets Equity | | | 176,411,069 | | | | 90,733,674 | | |
| Global Dynamic Multi Asset | | | 266,050,360 | | | | 219,243,144 | | |
| | | US Treasury Securities | |
| Portfolio | | Purchases | | Sales | |
| | | | | | | | | | |
| Global Dynamic Multi Asset | | $ | 2,524,368 | | | $ | — | | |
For the year ended December 31, 2015, 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. Investment Risks
(a) Non-US Securities Risk—Certain Portfolios may invest in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in US securities. Such Portfolios’ performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolios invest. 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. In addition, investments denominated in currencies other than US dollars may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. The Portfolios’ investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. Emerging market countries can 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 devalua-
tion of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies. Investments in these countries may be subject to political, economic, legal, market and currency risks. The risks may include less protection of property rights and uncertain political and economic policies, the imposition of capital controls and/or foreign investment limitations by a country, nationalization of businesses and the imposition of sanctions by other countries, such as the US.
(b) Fixed-Income and Debt Securities Risk—Global Dynamic Multi Asset Portfolio invests in fixed-income securities. 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. Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Increases in volatility and decreases in liquidity may be caused by a rise in interest rates (or the expectation of a rise in interest rates). Interest rate risk is usually greater for fixed-income securities with longer maturities or durations.
Global Dynamic Multi Asset 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 the 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. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.
7. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. 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.
8. Fair Value Measurements
Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data
obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. Each investment’s fair value measurement level within the fair value hierarchy 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 investments |
| • | Level 2 – other significant observable inputs (including unadjusted quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments) |
Changes in valuation technique may result in transfer into or out of the current assigned level within the hierarchy.
The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.
The following table summarizes the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2015:
| Description | | Unadjusted
Quoted Prices in
Active Markets
for Identical
Investments
(Level 1) | | | Significant Other
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Balance as of
December 31, 2015 | |
| | | | | | | | | | | | | | | | | |
| US Strategic Equity Portfolio | | | | | | | | | | | | | | | | |
| Common Stocks* | | $ | 11,010,471 | | | $ | — | | | $ | — | | | $ | 11,010,471 | |
| Short-Term Investment | | | 548,280 | | | | — | | | | — | | | | 548,280 | |
| Total | | $ | 11,558,751 | | | $ | — | | | $ | — | | | $ | 11,558,751 | |
| US Small-Mid Cap Equity Portfolio | | | | | | | | | | | | | | | | |
| Common Stocks* | | $ | 57,470,512 | | | $ | — | | | $ | — | | | $ | 57,470,512 | |
| Short-Term Investment | | | 1,990,008 | | | | — | | | | — | | | | 1,990,008 | |
| Total | | $ | 59,460,520 | | | $ | — | | | $ | — | | | $ | 59,460,520 | |
| International Equity Portfolio | | | | | | | | | | | | | | | | |
| Common Stocks* | | | | | | | | | | | | | | | | |
| United Kingdom | | $ | 9,792,241 | | | $ | 155,303,441 | | | $ | — | | | $ | 165,095,682 | |
| Other | | | 55,404,080 | | | | 434,308,183 | | | | — | | | | 489,712,263 | |
| Short-Term Investment | | | 24,836,533 | | | | — | | | | — | | | | 24,836,533 | |
| Total | | $ | 90,032,854 | | | $ | 589,611,624 | | | $ | — | | | $ | 679,644,478 | |
| Description | | Unadjusted
Quoted Prices in
Active Markets
for Identical
Investments
(Level 1) | | | Significant Other
Observable
Inputs
(Level 2) | | | Significant
Unobservable
Inputs
(Level 3) | | | Balance as of
December 31, 2015 | |
| | | | | | | | | | | | | | | | | |
| Emerging Markets Equity Portfolio | | | | | | | | | | | | | | | | |
| Common Stocks* | | | | | | | | | | | | | | | | |
| Brazil | | $ | 17,723,760 | | | $ | 62,990,444 | | | $ | — | | | $ | 80,714,204 | |
| China | | | 63,067,264 | | | | 63,511,854 | | | | — | | | | 126,579,118 | |
| Egypt | | | 374,084 | | | | 10,610,387 | | | | — | | | | 10,984,471 | |
| Hong Kong | | | 27,441,103 | | | | 4,257,645 | | | | — | | | | 31,698,748 | |
| Indonesia | | | 26,222,640 | | | | 39,257,946 | | | | — | | | | 65,480,586 | |
| Russia | | | 15,711,755 | | | | 58,925,785 | | | | — | | | | 74,637,540 | |
| Other | | | 44,130,907 | | | | 447,023,443 | | | | — | | | | 491,154,350 | |
| Short-Term Investment | | | 22,040,801 | | | | — | | | | — | | | | 22,040,801 | |
| Total | | $ | 216,712,314 | | | $ | 686,577,504 | | | $ | — | | | $ | 903,289,818 | |
| Global Dynamic Multi Asset Portfolio | | | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | | |
| Common Stocks* | | | | | | | | | | | | | | | | |
| Belgium | | $ | 1,305,000 | | | $ | 315,299 | | | $ | — | | | $ | 1,620,299 | |
| Denmark | | | 615,357 | | | | 586,746 | | | | — | | | | 1,202,103 | |
| Finland | | | 1,073,520 | | | | 676,721 | | | | — | | | | 1,750,241 | |
| Germany | | | 1,642,752 | | | | 953,256 | | | | — | | | | 2,596,008 | |
| Ireland | | | 867,735 | | | | 182,613 | | | | — | | | | 1,050,348 | |
| Israel | | | 551,275 | | | | 386,261 | | | | — | | | | 937,536 | |
| Italy | | | 631,858 | | | | 189,453 | | | | — | | | | 821,311 | |
| Japan | | | 2,721,837 | | | | 11,809,315 | | | | — | | | | 14,531,152 | |
| Netherlands | | | 1,119,059 | | | | 1,686,896 | | | | — | | | | 2,805,955 | |
| Norway | | | 632,142 | | | | 2,108,016 | | | | — | | | | 2,740,158 | |
| Singapore | | | 141,086 | | | | 1,198,685 | | | | — | | | | 1,339,771 | |
| Sweden | | | 1,048,594 | | | | 418,249 | | | | — | | | | 1,466,843 | |
| Switzerland | | | 2,009,892 | | | | 1,342,157 | | | | — | | | | 3,352,049 | |
| United Kingdom | | | 7,280,644 | | | | 6,046,774 | | | | — | | | | 13,327,418 | |
| Other | | | 93,407,297 | | | | 14,538,763 | | | | — | | | | 107,946,060 | |
| Corporate Bonds* | | | — | | | | 19,949,867 | | | | — | | | | 19,949,867 | |
| Foreign Government Obligations* | | | — | | | | 27,076,683 | | | | — | | | | 27,076,683 | |
| Quasi Government Bonds* | | | — | | | | 3,106,867 | | | | — | | | | 3,106,867 | |
| Supranationals | | | — | | | | 2,363,341 | | | | — | | | | 2,363,341 | |
| US Municipal Bonds | | | — | | | | 1,783,698 | | | | — | | | | 1,783,698 | |
| US Treasury Securities | | | — | | | | 2,497,582 | | | | — | | | | 2,497,582 | |
| Right* | | | — | | | | 219 | | | | — | | | | 219 | |
| Short-Term Investment | | | 8,080,475 | | | | — | | | | — | | | | 8,080,475 | |
| Other Financial Instruments** | | | | | | | | | | | | | | | | |
| Forward Currency Contracts | | | — | | | | 825,666 | | | | — | | | | 825,666 | |
| Total | | $ | 123,128,523 | | | $ | 100,043,127 | | | $ | — | | | $ | 223,171,650 | |
| Liabilities: | | | | | | | | | | | | | | | | |
| Other Financial Instruments** | | | | | | | | | | | | | | | | |
| Forward Currency Contracts | | $ | — | | | $ | (390,249 | ) | | $ | — | | | $ | (390,249 | ) |
| * | | Please refer to Portfolios of Investments (page 15 through 31) and Notes to Portfolios of Investments (page 35) for portfolio holdings by country and industry. |
| ** | | Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation/depreciation. |
Certain securities to which footnote (c) in the Notes to Portfolios of Investments apply are included in Level 2 and were valued based on reference to similar securities which were trading on active markets.
In connection with the periodic implementation of fair value pricing procedures with respect to non-US securities (see Note 2(a)), certain equity securities (other than those securities described in footnote (c) in the Notes to Portfolios of Investments) in the International Equity, Emerging Markets Equity and Global Dynamic Multi Asset Portfolios can transfer from Level 1 to Level 2 as a result of fair value pricing procedure triggers being met and would revert to Level 1 when the fair value pricing procedure triggers are no longer met. Accordingly, a significant portion of the Portfolios’ investments are categorized as Level 2 investments. A Portfolio recognizes all transfers between levels as though they were transferred at the beginning of the reporting period.
There were no transfers into or out of Levels 1, 2 or 3 during the year ended December 31, 2015.
For further information regarding security characteristics see Portfolios of Investments.
9. Derivative Instruments
Certain Portfolios may use derivative instruments, including forward currency contracts. Forward currency contracts may be used for hedging purposes or to seek to increase returns.
Global Dynamic Multi Asset Portfolio
During the year ended December 31, 2015, the notional amounts of purchases and sales of forward currency contracts were $310,240,236 and $333,110,678, respectively, with average notional exposure of approximately $63,900,000.
The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2015:
| | | Fair Value |
| | | |
| Asset Derivatives | | | | |
| Foreign Exchange Risk: | | | | |
| Gross unrealized appreciation on forward currency contracts | | $ | 825,666 | |
| Liability Derivatives | | | | |
| Foreign Exchange Risk: | | | | |
| Gross unrealized depreciation on forward currency contracts | | $ | 390,249 | |
The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2015 was:
| | | | Amount | |
| | | | | |
| Realized Gain (Loss) on Derivatives Recognized in Income | | | | |
| Foreign Exchange Risk: | | | | |
| Net realized gain on forward currency contracts | | $ | 1,585,276 | |
| Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | | | | |
| Foreign Exchange Risk: | | | | |
| Net change in unrealized appreciation on forward currency contracts | | $ | 140,695 | |
See Note 2(c) and the Portfolios of Investments for additional disclosures about derivative instruments.
As of December 31, 2015, Global Dynamic Multi Asset Portfolio holds derivative instruments that are eligible for offset in the Statement of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through a single payment in the event of default on, or termination of, any one contract.
The required information for the affected Portfolio is presented in the below table, as of December 31, 2015:
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 | | | $ | 825,666 | | | $ | — | | | $ | 825,666 | | |
| | | | | Amounts Not Offset in the
Statement of Assets and Liabilities | | |
| Counterparty | | Net Amounts of
Assets Presented
in Statement of
Assets and Liabilities | | Financial
Instruments | | Collateral
Received | | Net Amounts |
| | | | | | | | | | |
| Canadian Imperial Bank of Commerce | | | $ | 1,210 | | | $ | (1,210 | ) | | $ | — | | | $ | — | |
| Citibank NA | | | | 232,718 | | | | (78,830 | ) | | | — | | | | 153,888 | |
| HSBC Bank USA NA | | | | 446,002 | | | | (65,950 | ) | | | — | | | | 380,052 | |
| JPMorgan Chase Bank NA | | | | 22,270 | | | | (9,444 | ) | | | — | | | | 12,826 | |
| Royal Bank of Canada | | | | 96,943 | | | | (4,406 | ) | | | — | | | | 92,537 | |
| State Street Bank and Trust Co. | | | | 26,523 | | | | (11,558 | ) | | | — | | | | 14,965 | |
| Total | | | $ | 825,666 | | | $ | (171,398 | ) | | $ | — | | | $ | 654,268 | |
| 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 | | | $ | 390,249 | | | $ | — | | | $ | 390,249 | | |
| | | Amounts Not Offset in the
Statement of Assets and Liabilities | | |
| Counterparty | | Net Amounts of
Liabilities Presented
in Statement of
Assets and Liabilities | | Financial
Instruments | | Collateral
Pledged | | Net Amounts |
| | | | | | | | | | |
| Barclays Bank PLC | | | $ | 51,873 | | | $ | — | | | $ | — | | | $ | 51,873 | |
| Canadian Imperial Bank of Commerce | | | | 162,986 | | | | (1,210 | ) | | | — | | | | 161,776 | |
| Citibank NA | | | | 78,830 | | | | (78,830 | ) | | | — | | | | — | |
| HSBC Bank USA NA | | | | 65,950 | | | | (65,950 | ) | | | — | | | | — | |
| JPMorgan Chase Bank NA | | | | 9,444 | | | | (9,444 | ) | | | — | | | | — | |
| Royal Bank of Canada | | | | 4,406 | | | | (4,406 | ) | | | — | | | | — | |
| Standard Chartered Bank | | | | 5,202 | | | | — | | | | — | | | | 5,202 | |
| State Street Bank and Trust Co. | | | | 11,558 | | | | (11,558 | ) | | | — | | | | — | |
| Total | | | $ | 390,249 | | | $ | (171,398 | ) | | $ | — | | | $ | 218,851 | |
10. Subsequent Events
Management has evaluated subsequent events affecting the Fund through the issuance of the financial
statements and has determined that there were no subsequent events that required adjustment or disclosure.
Lazard Retirement Series, Inc. Report of Independent Registered Public Accounting Firm
To the Board of Directors of Lazard Retirement Series, Inc. and Shareholders of Lazard Retirement US Strategic Equity Portfolio, Lazard Retirement US Small-Mid Cap Equity Portfolio, Lazard Retirement International Equity Portfolio, Lazard Retirement Emerging Markets Equity Portfolio, and Lazard Retirement Global Dynamic Multi Asset Portfolio:
We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of Lazard Retirement Series, Inc. (the “Fund”) comprising Lazard Retirement US Strategic Equity Portfolio, Lazard Retirement US Small-Mid Cap Equity Portfolio, Lazard Retirement International Equity Portfolio, Lazard Retirement Emerging Markets Equity Portfolio, and Lazard Retirement Global Dynamic Multi Asset Portfolio as of December 31, 2015, and the related statements of operations for the year then ended and the statements of changes in net assets and the financial highlights for each of the two years in the period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. The financial highlights for the periods presented on or before December 31, 2013 were audited by other auditors whose report, dated February 14, 2014, expressed an unqualified opinion on those financial highlights.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2015, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Lazard Retirement US Strategic Equity Portfolio, Lazard Retirement US Small-Mid Cap Equity Portfolio, Lazard Retirement International Equity Portfolio, Lazard Retirement Emerging Markets Equity Portfolio, and Lazard Retirement Global Dynamic Multi Asset Portfolio as of December 31, 2015, the results of their operations for the year then ended, and the changes in their net assets and the financial highlights for each of the two years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
New York, New York
February 16, 2016
Lazard Retirement Series, Inc. Board of Directors and Officers Information (unaudited)
Name (Age)
Address(1) | | Position(s) with the Fund
(Since) and Term(2) | | Principal Occupation(s) and Other Public Company
Directorships Held During the Past Five Years(2) |
| | | | | |
| Independent Directors(3): | | |
| | | | | |
| Franci J. Blassberg (62) | | Director
(August 2014) | | Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present); previously, Partner (through 2012) |
| | | | | |
| | | | | Cornell Law School, Visiting Professor of Practice (2015 – present); previously, Distinguished Practitioner in Residence (Fall 2013 and Fall 2014) |
| | | | | |
| Kenneth S. Davidson (70) | | Director
(April 1997) | | Davidson Capital Management Corporation, an investment manager, President (1978 – present) |
| | | | | |
| | | | | Landseer Advisors LLC, an investment manager, Senior Advisor (2012 – 2014) |
| | | | | |
| | | | | Aquiline Holdings LLC, an investment manager, Partner (2006 – 2012) |
| | | | | |
| Nancy A. Eckl (53) | | Director
(May 2007) | | College Retirement Equities Fund (eight accounts), Trustee (2007 – present) |
| | | | | |
| | | | | TIAA-CREF Funds (65 funds) and TIAA-CREF Life Funds (11 funds), Trustee (2007 – present) |
| | | | | |
| | | | | TIAA Separate Account VA-1, Member of the Management Committee (2007 – present) |
| | | | | |
| | | | | American Beacon Advisors, Inc. (“American Beacon”) and certain funds advised by American Beacon, Vice President (1990 – 2006) |
| | | | | |
| Trevor W. Morrison (44) | | Director
(April 2014) | | New York University School of Law, Dean and Eric M. and Laurie B. Roth Professor of Law (2013 – present) |
| | | | | |
| | | | | Columbia Law School, Professor of Law (2008 – 2013) |
| | | | | |
| Richard Reiss, Jr. (71) | | Director
(April 1997) | | Georgica Advisors LLC, an investment manager, Chairman (1997 – present) |
| | | | | |
| | | | | Resource Americas, Inc., a real estate management company, Director (2016 – present) |
| | | | | |
| | | | | O’Charley’s, Inc., a restaurant chain, Director (1984 – 2012) |
| | | | | |
| Robert M. Solmson (68) | | Director
(September 2004) | | Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 – present) |
Name (Age)
Address(1) | | Position(s) with the Fund
(Since) and Term(2) | | Principal Occupation(s) and Other Public Company
Directorships Held During the Past Five Years(2) |
| | | | | |
| Interested Directors(4): | | | | |
| | | | | |
| Charles L. Carroll (55) | | Chief Executive Officer, President and Director (June 2004) | | Investment Manager, Deputy Chairman and Head of Global Marketing (2004 – present) |
| | | | | |
| Ashish Bhutani (55) | | Director (July 2005) | | Investment Manager, Chief Executive Officer (2004 – present) |
| | | | | |
| | | | | Lazard Ltd, Vice Chairman and Director (2010 – present) |
| (1) | The address of each Director of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
| | |
| (2) | Each Director serves as a Director for each of the funds in the Lazard Fund Complex (comprised of, as of January 31, 2016, 41 active investment portfolios). Each Director serves an indefinite term, until his or her successor is elected, and each Director serves in the same capacity for the other funds in the Lazard Fund Complex. |
| | |
| (3) | “Independent Directors” are not “interested persons” (as defined in the 1940 Act) of the Fund. |
| | |
| (4) | Messrs. Bhutani and Carroll are “interested persons” (as defined in the 1940 Act) of the Fund because of their positions with the Investment Manager. |
The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.LazardNet.com.
Name (Age)
Address(1) | | Position(s) with the Fund
(Since) and Term(2) | | Principal Occupation(s) During the Past Five Years |
| |
| Officers(3): | | | | |
| | | | | |
| Nathan A. Paul (43) | | Vice President and Secretary (April 2002) | | Managing Director and General Counsel of the Investment Manager |
| | | | | |
| Stephen St. Clair (57) | | Treasurer (May 2003) | | Vice President of the Investment Manager |
| | | | | |
| Mark R. Anderson (45) | | Chief Compliance Officer (September 2014) | | Director and Chief Compliance Officer of the Investment Manager (since September 2014) |
| | | | | |
| | | | | Senior Vice President, Counsel and Deputy Chief Compliance Officer of AllianceBernstein L.P. (2004 – August 2014) |
| | | | | |
| Tamar Goldstein (40) | | Assistant Secretary (February 2009) | | Senior Vice President (since February 2012, previously Vice President) and Director of Legal Affairs (since July 2015) of the Investment Manager |
| | | | | |
| Shari L. Soloway (34) | | Assistant Secretary (November 2015) | | Senior Vice President, Legal and Compliance, of the Investment Manager (since September 2015) |
| | | | | |
| | | | | Vice President and Associate General Counsel of GE Asset Management (July 2011 – September 2015) |
| | | | | |
| | | | | Associate at Clifford Chance US LLP (2006 – July 2011) |
| | | | | |
| Cesar A. Trelles (41) | | Assistant Treasurer (December 2004) | | Vice President of the Investment Manager |
| (1) | The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
| | |
| (2) | Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex. |
| | |
| (3) | In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section. |
Lazard Retirement Series, 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 http://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 http://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.
Form N-Q
The Fund files a complete schedule of each Portfolio’s holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330.
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Lazard Retirement Series, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
http://www.LazardNet.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
Transfer Agent and Dividend Disbursing Agent
Boston Financial Data Services, Inc.
P.O. Box 8514
Boston, Massachusetts 02266-8514
Telephone: 800-986-3455
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015
Legal Counsel
Stroock & Stroock & Lavan LLP
180 Maiden Lane
New York, New York 10038-4982
http://www.stroock.com
Performance information as of the most recent month end is available online at www.LazardNet.com.
| Lazard Asset Management LLC • 30 Rockefeller Plaza • New York NY 10112 • www.lazardnet.com |  |
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| LZDPS010 | |
ITEM 2. CODE OF ETHICS.
The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Registrant’s Board of Directors (the “Board”) has determined that Robert M. Solmson and Nancy A. Eckl, members of the Audit Committee of the Board, are audit committee financial experts as defined by the Securities and Exchange Commission (the “SEC”). Mr. Solmson and Ms. Eckl are “independent” as defined by the SEC for purposes of audit committee financial expert determinations.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $145,000 in 2014 and $149,358 in 2015.
(b) Audit-Related Fees. There were no fees billed in the Reporting Periods by the Auditor to the Registrant for assurance and related services that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item 4.
(c) Tax Fees. The aggregate fees billed in the Reporting Periods by the Auditor to the Registrant for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $25,600 in 2014 and $123,403 in 2015. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held. There were no fees billed in the Reporting Periods for Tax Services by the Auditor to Lazard Asset Management LLC, the Registrant’s investment manager (“Lazard”), and any entity controlling, controlled by or under common control with Lazard that provides ongoing services to the Registrant (“Service Affiliates”).
(d) All Other Fees. There were no fees billed in the Reporting Periods for products and services provided by the Auditor to the Registrant other than the services reported in paragraphs (a) through (c) above. There were no fees billed in the Reporting Periods for non-audit services by the Auditor to Service Affiliates, other than the services reported in paragraphs (a) through (c) above.
(e) Audit Committee Pre-Approval Policies and Procedures. The Registrant’s Audit Committee pre-approves the Auditor’s engagements for audit and non-audit services to the Registrant and, as required, non-audit services to Service Affiliates on a case-by-case basis. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor’s independence. There were no services
provided by the Auditor to the Registrant that were approved pursuant to (c)(7)(i)(C) of Rule 2-01 of Regulation S-X during the Reporting Periods.
(f) None.
(g) Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant and Service Affiliates for the Reporting Periods were $1,290,951 in 2014 and $906,230 in 2015.
(h) 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 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 second fiscal quarter of 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. EXHIBITS.
(a)(1) Code of Ethics referred to in Item 2.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.
(a)(3) Not applicable.
(b) Certifications of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.
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.
Lazard Retirement Series, Inc.
| By | /s/ Charles L. Carroll | |
| | Charles L. Carroll | |
| | Chief Executive Officer | |
| | | |
| Date | March 8, 2016 | |
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/ Charles L. Carroll | |
| | Charles L. Carroll | |
| | Chief Executive Officer | |
| | | |
| Date | March 8, 2016 | |
| | | |
| By | /s/ Christopher Snively | |
| | Christopher Snively | |
| | Chief Financial Officer | |
| | | |
| Date | March 8, 2016 | |
