UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-06312
The Lazard Funds, Inc.
(Exact name of registrant as specified in charter)
30 Rockefeller Plaza
New York, New York 10112
(Address of principal executive offices) (Zip code)
Mark R. Anderson, Esq.
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112
(Name and address of agent for service)
Registrant’s telephone number, including area code: (212) 632-6000
Date of fiscal year end: 12/31
Date of reporting period: 12/31/23
ITEM 1. REPORTS TO STOCKHOLDERS.
Lazard Funds
Annual Report
December 31, 2023
Equity Funds
Lazard Developing Markets Equity Portfolio Lazard Emerging Markets Core Equity Portfolio Lazard Emerging Markets Equity Advantage Portfolio Lazard Emerging Markets Equity Portfolio Lazard Equity Franchise Portfolio Lazard Global Equity Select Portfolio Lazard Global Listed Infrastructure Portfolio Lazard Global Strategic Equity Portfolio Lazard International Equity Advantage Portfolio Lazard International Equity Portfolio | Lazard International Equity Select Portfolio Lazard International Quality Growth Portfolio Lazard International Small Cap Equity Portfolio Lazard International Strategic Equity Portfolio Lazard Managed Equity Volatility Portfolio Lazard US Equity Concentrated Portfolio Lazard US Equity Focus Portfolio Lazard US Small Cap Equity Select Portfolio Lazard US Sustainable Equity Portfolio Lazard US Systematic Small Cap Equity Portfolio |
The Lazard Funds, Inc. Table of Contents
Please consider a Portfolio’s investment objective, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. (the “Fund”), you may obtain a prospectus or a Portfolio’s summary prospectus by calling 800-823-6300, or online, at www.lazardassetmanagement.com. Read the prospectus or the Portfolio’s summary prospectus carefully before you invest. The prospectus and a Portfolio’s summary prospectus contain the investment objective, risks, charges, expenses and other information about the Portfolio, which are not detailed in this report.
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Distributed by Lazard Asset Management Securities LLC.
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The Lazard Funds, Inc. A Message from Lazard (unaudited)
Dear Shareholder:
The year 2023 saw bloodshed from wars in Europe and the Middle East, ample displays of political complexities in the United States, and further advances in the development of machines that can mimic human thinking. For financial markets, however, which endured nearly 4,000 basis points of interest rate hikes since late 2021, the year was defined by one simple question posed to major central banks: What comes next?
Financial markets were a roller coaster in 2023, as investors were forced to constantly adjust their expectations on when key central banks would retreat from their restrictive monetary policy stances out of fear that these positions would tip the global economy into a severe recession. Against this backdrop, the US Federal Reserve (the “Fed”) was front and center in the minds of investors, as it waged its most aggressive rate-hiking campaign in over 40 years. After raising interest rates seven times in 2022, the world’s most influential central bank did so again four times in 2023, raising borrowing costs to their highest level in 22 years. Data suggesting that domestic inflation was cooling, and that the US economy remained remarkably resilient sparked optimism in the second half of the year that the Fed was done raising interest rates and perhaps would begin lowering them in 2024. While the Fed did, in fact, pass up opportunities to raise interest rates higher in its last three policy meetings of 2023, it also sent mixed signals about the trajectory of its rate-hiking campaign, which triggered spikes in volatility across financial markets.
The Fed was not the only central bank to make news in 2023. In Europe, both the European Central Bank (the “ECB”) and the Bank of England (the “BOE”) continued to raise interest rates at a furious pace before pausing their inflation-fighting campaigns in the latter part of the year. Meanwhile, in Asia, the Bank of Japan, which kept interest rates ultra-low during the global monetary tightening cycle, began to veer from this path in the closing months of the year amid signs that inflation was accelerating in Japan.
After suffering through a dismal 2022, financial markets rebounded in 2023, driven primarily by hopes that inflation had fallen enough for key central banks, particularly the Fed, to begin cutting interest rates in 2024. Global equity markets, as measured by the MSCI All Country World Index, surged 22.2% in 2023 while global bond
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markets, as measured by the Bloomberg Global Aggregate Bond Index, gained 5.7%. (Index returns are in US dollar terms.)
The challenging market conditions in 2023 are a reminder of the importance of active portfolio management. Turbulent markets are likely to differentiate winners from losers. We remain confident that fundamental analysis and bottom-up security selection will be crucial drivers of performance going forward. We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities.
Sincerely,
Lazard Asset Management LLC
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The Lazard Funds, Inc. Investment Overviews (unaudited)
Market Overviews
Global Markets
In the trailing 12-month period that ended December 31, global equity markets rose sharply, as investors speculated about the path ahead for the interest rate policies of major central banks.
After enduring nearly 4,000 basis points in interest rate hikes since late 2021, the actions of major central banks were front and center once again in the minds of investors. In January, markets rallied on hopes that a severe worldwide economic recession could be avoided, and that slowing inflation would induce major central banks to slow the pace of their forceful monetary tightening cycles. That optimism faded in subsequent months, however, as the Fed continued with its most aggressive rate-hiking campaign in over 40 years and hinted that interest rates could stay elevated for a while. The fallout from this blizzard of rate hikes was evident in the first half of the year when bond losses contributed to regional bank weakness in the United States. The Fed, as expected, kept interest rates steady at a 22-year high following policy meetings in September, November, and December. However, after months of signaling that it was adopting a “higher for longer” interest rate policy stance, the Fed began taking a less hawkish tone in November, as data suggested that a “soft landing” for the US economy was growing increasing likely. Investors cheered near the end of the period when the Fed hinted that its forceful rate-hiking campaign, which incorporated 11 increases since 2022, including four times in 2023, had reached its conclusion and forecast that it could reduce interest rates three times in 2024. After briefly exceeding the psychologically important threshold of 5% in late October, the yield on the benchmark 10-year US Treasury note ended the year exactly where it started, at 3.88%.
In Europe, persistent inflationary pressure in the eurozone led the ECB to maintain a hawkish posture throughout the year, raising rates to an all-time high after 10 consecutive hikes since mid-2022, including six raises in 2023. With data suggesting that significant progress had been made in its war against inflation, the ECB held interest rates steady in October and December but pledged to
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keep them at an elevated level for a sustained duration of time. Despite the ECB’s vow, investors nevertheless were betting that the eurozone central bank would reduce rates next year as the common currency bloc lurched toward an economic recession. Similarly, with price pressure in the United Kingdom easing materially, the BOE kept its interest rates steady in September, November, and December, leaving them at a 15-year high after 14 consecutive hikes since December 2021, including five times in 2023. The BOE pledged to maintain a hawkish stance for an extended period, but data suggesting that the United Kingdom was headed for a period of economic stagnation sparked speculation that the British central bank would cut rates in the first half of next year.
Despite stiff interest-rate headwinds, the value of global equity markets increased US$10 trillion in 2023, thanks largely to the strong performance of a handful of mega-cap US technology stocks. These mega-cap US technology stocks, the so-called “Magnificent Seven”—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla—surged 76% on a weighted average basis and accounted for about 42% of the gain recorded by the MSCI All Country World Index (ACWI). By way of comparison, the rest of the stocks in the MSCI All Country World Index gained roughly 12% for the year.
Against this backdrop, equity markets in both the developed and developing worlds rose in 2023, with the former outperforming the latter. In the United States, the S&P 500 Index soared and came within 0.6% of its record high at the end of year on growing expectations that the Fed would pivot to a more dovish stance. The “Magnificent Seven” group of mega cap technology stocks accounted for roughly two-thirds of the S&P 500 Index’s 2023 gain. Across the Atlantic, the pan-European STOXX Europe 600 Index recorded its best annual performance since 2019 on hopes that the ECB would begin reducing rates in 2024 amid signs of significant progress in its inflation-fighting campaign. In Japan, the Tokyo Stock Price Index (“TOPIX”) surged, thanks largely to a weak yen and efforts to improve corporate governance and profitability. Meanwhile, in emerging Asia, the Hong Kong-based Hang Seng Index, which is comprised mostly of companies from
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mainland China and serves as a gateway for foreign investors wanting to put money there, tumbled in 2023 and was one of the world’s worst-performing stock markets due to worries about China’s mounting economic woes and the lack of a forceful response from Chinese policymakers.
Information technology was the best-performing sector in 2023, as a market frenzy about artificial intelligence led investors to bid up shares of technology companies linked to field of study. Utilities was the worst-performing sector, as elevated bond yields hurt high-dividend-paying “bond proxy” stocks.
Emerging Markets Equities
Despite ongoing concerns about a global economic recession and heightened geopolitical tensions, equity markets in the developing world finished the year appreciably higher in 2023, with the MSCI Emerging Markets Index climbing 9.8%. Equity markets in the largest region of the developing world, emerging Asia, rose 7.8% but nevertheless lagged the broader market index. Meanwhile, stock markets in Latin America and Eastern Europe recorded string gains of 32.7% and 47.2%, respectively. Stock markets rallied especially towards year end, as investors began to expect a “soft landing” for the global economy.
Stock markets in the region encompassing emerging Europe, the Middle East, and Africa (EMEA) advanced but lagged the broader market index in the year. Equity markets in emerging Europe registered especially strong gains in 2023. Greece’s stock market recovered sharply, as the country’s economy rebounded after Kyriakos Mitsotakis was elected for a second term as Greece’s prime minister in June 2023. Hungarian stocks were helped by strong performance in certain stocks with a regional footprint. Poland’s stock market advanced on optimism that funds from the European Union will be allocated to the country after a centrist coalition led by the opposition Civic Platform party prevailed in Poland’s parliamentary election. Egyptian shares performed well but the currency was not freely convertible. Turkey’s stock market slid despite a pivot to a more orthodox monetary policy by the country’s central bank and increased investor interest.
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South Africa’s equity market lagged due to stagnant economic growth and structural problems, such as with Eskom, the main electric utility provider in the country.
Equity markets in Latin America all rose in the 12-month period and Latin America was the best-performing region in 2023, thanks to a recovery in initial investor pessimism stemming from the elections of leftward-leaning presidents in most countries. Equity markets in Mexico, Peru, and Brazil posted the largest advances, all aided by signs of lower political tensions and reasonably strong economic activity.
The performance of strong markets in emerging Asia varied widely. China’s equity market tumbled, falling 11.2%, as property industry weakness, ongoing government regulation in internet platform companies, and concerns about geopolitical risks hampered the country’s post-pandemic economic recovery. Thai equities finished more than 15.5% lower than the previous year, hurt by slow growth and poor tourism revenue. Most stock markets in Southeast Asia lagged regionally, while the markets in North Asia performed well. Equity markets in Taiwan and South Korea posted strong gains, boosted by semiconductor prices. India’s stock market continued to benefit from the country’s strong economic growth despite somewhat richer valuations.
Information technology and energy were the best-performing sectors in 2023. Conversely, real estate, consumer discretionary, and healthcare were the worst-performing sectors.
International Equities
In the trailing 12-month period that ended December 31, international equity markets rose sharply, as investors hoped that inflation had fallen enough for major central banks to finally end their restrictive monetary policies and perhaps even begin cutting interest rates next year.
All eyes were on the Fed during the year as the US central bank waged its most aggressive inflation-fighting campaign in 40 years, raising US interest rates from virtually zero to its highest level in
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22 years. After lifting interest rates 11 times since March 2022, including four times in 2023, the US central bank pledged to keep rates “higher for longer” in order to ease persistent inflationary pressure. However, encouraging inflation data and less hawkish comments from the Fed, including hints that its rate-hiking campaign was finished and a forecast that pointed to three rate cuts in 2024, were cheered by investors.
A similar situation was playing out in Europe, where the ECB and the BOE continued raising interest rates at a furious pace, lifting them six times and five times in 2023, respectively. With data suggesting that inflation in the eurozone and the UK had fallen significantly, both central banks declined to raise interest rates any higher in the latter part of the year but pledged to adopt the “higher for longer” position as their official interest rate policy stance. However, with both the eurozone and the UK expected to enter into periods of economic stagnation in the near term, investors bet that both the ECB and the BOE will begin cutting rates in 2024.
Investor optimism was dampened by developments in China, where investors feared that China’s mounting economic woes could ripple across the broader global economy. With China’s economy—the world’s second largest—continuing to struggle under the weight of a real estate crisis and the growing risk of deflation, foreign investors were dumping Chinese stocks out of concern about the lack of a forceful response from Chinese policymakers.
US Equities
In the trailing 12-month period that ended December 31, the US equity market rallied, as investors speculated about the path ahead for the Fed’s interest rate policy after the US central bank raised interest rates from near-zero early last year to its highest level since 2001.
In January, markets rallied on hopes that an economic recession could be avoided globally, and that slowing inflation would induce major central banks to ease up on their monetary tightening
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cycles. In March, news that several US banks had been seized by the government stoked fears of potential contagion, but actions by the Fed and the Federal Deposit Insurance Corporation helped alleviate market concerns. After months of signaling that it was adopting a “higher for longer” interest rate policy stance, the Fed began taking a less hawkish tone in November as data suggested that a “soft landing” for the US economy was growing increasing likely. Investors cheered near the end of the year when the Fed hinted that its forceful rate-hiking campaign had reached its conclusion and forecast that it could reduce interest rates in 2024. The economy continued to show resilience, culminating with a third-quarter GDP growth reading coming in higher than initially anticipated at 5.2% and the US continuing to add more jobs at a strong pace. The S&P 500 Index’s seven largest constituents—the so-called “Magnificent Seven” (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla)—collectively surged 76% on a weighted average basis in 2023 and accounted for roughly two-thirds of the S&P 500 Index’s gain for the year. The S&P 500 Index ended 2023 just 0.6% shy of its record high set in January 2022.
The US small cap market, as measured by the Russell 2000 index, began the year with a strong start in January. However, fear of continuing inflation and elevated interest rates led to continued pressure and volatility in small caps. Over the last two months of the year, with inflation seemingly under control, and a soft landing appearing to be in sight, small caps returned 22.4% leading them into positive territory and ending at 16.9% for the year.
Portfolio Performance
Lazard Developing Markets Equity Portfolio
For the year ended December 31, 2023, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of 9.64%, while Open Shares posted a total return of 9.34%, as compared with a 9.83% return for the MSCI Emerging Markets Index.
Stock selection within the communication services, consumer discretionary and consumer staples sectors, as well as in Hungary,
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China, and India, detracted value. Lower-than-index exposure to India and Korea and higher-than-index exposure within the consumer discretionary sector hurt performance.
Shares in China Tourism Group, a Chinese duty-free operator, suffered from weak consumption trends in China. JD.com, a leading e-commerce platform operator in China, underperformed on continued weak China sentiment. Zhongsheng, a Chinese auto after-sales and dealership company, moved lower on concerns around new car margins. Shares in Liangxin Electrical, a top-tier Chinese low-voltage electrical device manufacturer, declined as housing and construction remained depressed post China’s Covid-19 reopening. Wuliangye, a Chinese premium baijiu (liquor) player, was lower on weaker domestic consumption.
Stock selection within the financials and information technology sectors, as well as in South Africa, Korea, the Philippines, and Taiwan, helped performance. Lower than index exposure within the communication services, consumer staples, healthcare, real estate, materials, and utilities sectors, as well as to Malaysia and Thailand, and higher-than-index exposure within the information technology sector, as well as to Mexico, Hungary and Taiwan, added value.
Samsung Electronics, a Korean information technology company, did well on the back of improved smartphone sell-through and growing demand for memory. Hynix, a Korean memory manufacturer, moved higher on optimism about demand for the company’s high-bandwidth memory. Shares in Taiwan Semiconductor, a Taiwanese semiconductor foundry, gained on the back of improving smartphone demand, one of its largest markets for semiconductors while MediaTek, a Taiwanese fabless semiconductor company, gained on the back of improving smartphone demand trends. In the financials sector, GF Banorte, a private bank in Mexico, outperformed on resilient loan growth.
Lazard Emerging Markets Core Equity Portfolio
For the year ended December 31, 2023, the Lazard Emerging Markets Core Equity Portfolio’s Institutional Shares posted a total return of 12.29%, while Open Shares posted a total return of 12.05% and
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R6 Shares posted a total return of 12.32%, as compared with the 9.83% return for the MSCI Emerging Markets Index.
Stock selection in the information technology and industrials sectors, as well as in Korea and Brazil, was positive. Below-index exposure to China, paired with above-index exposure to Mexico, added value.
Shares of TSMC, a Taiwanese semiconductor manufacturer, gained on expectations for a recovery in sales as excess inventories of smartphones and semiconductors have declined. Shares of Korea-based Samsung Electronics and SK Hynix appreciated as part of the broader gains made by chipmakers on expectations of a demand recovery.
Stock selection in the consumer discretionary and energy sectors as well as in India and China was negative. Below-index exposure to Korea detracted from relative performance.
Shares of JD.com faltered on worries about margin pressure stemming from the China-based e-commerce platform operator’s focus on top line growth. Li Ning, the Chinese sportswear and sports equipment company, declined after missing on revenue and revising guidance down. Shares of UK miner Anglo American declined as the price of metals fell.
Lazard Emerging Markets Equity Advantage Portfolio
For the year ended December 31, 2023, the Lazard Emerging Markets Equity Advantage Portfolio’s Institutional Shares posted a total return of 12.64%, while Open Shares posted a total return of 12.36%, as compared with the 9.83% return for the MSCI Emerging Markets Index.
Favorable stock selection and sector positioning benefited performance while operating cash detracted. Section allocation was aided by the overweight to information technology and underweight to materials. An overweight in communication services and an underweight to energy detracted modestly. Stock selection was strongest in information technology and energy and underperformed in financials and materials. Stock selection was favorable in China and Taiwan. Holdings in Korea and Poland detracted.
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Stocks that contributed to the year’s excess return included Hindustan Aeronautics, which continued to diversify their business from defense into commercial aircraft and formed a partnership with Airbus. The company has significant back order of major projects which provides favorable visibility towards earnings increases through 2025. The stock was upgraded by several industry analysts. Kia continued to report strong operational results with revenue and operating profits at record levels. A depressed macroeconomic sentiment weighed on the stock despite offering a 7% dividend yield and a forward-earnings multiple less than 4. The Portfolio management team added to the Portfolio position taking advantage of the rally in the fourth quarter. The Portfolio’s overweight to PetroChina benefitted the Portfolio in the first half of the year as the stock rallied sharply beating elevated expectations despite a decline in oil prices. Lower cost structure and better results from its refining and chemical operations helped to boost the stock. The Portfolio’s position was trimmed on valuation concerns.
Detractors in the Portfolio included Infosys, which lagged in the strong India market. The information technology (IT) services company has faced headwinds from higher labor costs and slowing corporate IT spending. The Portfolio went from an overweight to underweight position in the second half of the year given the poor sentiment and macro environment. Quanta Computer, an underweight in the Portfolio for the year, soared over 220% in the year in the artificial intelligence (AI)-driven speculation. The stock continues to rank poorly on all of our measures.
Lazard Emerging Markets Equity Portfolio
For the year ended December 31, 2023, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of 22.39%, while Open Shares posted a total return of 22.03% and R6 Shares posted a total return of 22.37%, as compared with the 9.83% return for the MSCI Emerging Markets Index.
Security selection in the information technology, consumer discretionary, financials, and industrial sectors contributed to relative performance. An overweight in the energy sector and an
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underweight in the consumer discretionary sector boosted relative performance. From a country perspective, security selection in Taiwan, China, Brazil, and South Africa contributed, as did an overweight to Brazil and Hungary and an underweight to China. A re-rating of technology hardware and infrastructure stocks due to market enthusiasm over the potential for artificial intelligence (AI)-related demand benefited Quanta Computer, a Taiwanese manufacturer of notebook computers and cloud computing/network system solutions. Shares of Petrobras rallied, as concerns regarding the Brazilian energy company’s corporate governance and pricing policies were alleviated. SK Hynix rose on optimism that the South Korea-based chipmaker will benefit from the expected recovery in demand for memory chips. Shares also received a boost from hopes that the proliferation of servers linked to artificial intelligence could expedite the transition to next-generation memory chips, thus helping to clear inventories.
Security selection in the consumer staples and real estate sectors was a detractor to relative performance. An underweight in India also detracted from returns. Weakening macro data and housing sales dynamics in China led to a sell-off in shares of China Vanke, a residential real estate developer. Chinese lender China Merchant Bank saw its stock price fall on concerns about China’s uncertain economic outlook and its debt-laden real estate sector, to which China’s banking system is exposed.
Lazard Equity Franchise Portfolio
For the year ended December 31, 2023, the Lazard Equity Franchise Portfolio’s Institutional Shares posted a total return of 18.70%, while Open Shares posted a total return of 18.42%, as compared with the 23.79% return for the MSCI World® Index.
CVS Health owns a retail pharmacy network, a pharmacy benefit manager (PBM), and a health care benefits provider (providing health insurance and managing health care). In 2023, the PBM business faced several challenges, including the loss of Centene as a customer, competition from a consortium that includes Amazon, and political proposals aimed at regulating and reducing drug costs in the US. Additionally, CVS made two significant
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acquisitions, Signify Health for US$8 billion and Oak Street Health for US$10.6 billion, which were met with skepticism from the market despite their strategic rationale. Pediatrix Medical Group, a specialist physician group, detracted during the year after it reported its third quarter results in early November. The results fell below expectations, and the company also lowered its full-year 2023 EBITDA guidance due to growth in clinician compensation expenses outpacing customer prices. The position in the stock was sold. Tapestry shares fell after the luxury retailer announced the acquisition of Capri Holdings, the parent company of Michael Kors, Versace, and Jimmy Choo brands. The deal came as a surprise, given the retailer’s momentum with its current strategy. The Portfolio management team believed that there could be challenges in terms of debt burden and integration. There are also considerable execution risks to this acquisition, given that consumers in developed markets and China are facing significant pressure. The position in the stock was sold. In the first quarter of 2023, the Portfolio’s the Portfolio’s position in Stericycle was sold following disappointing fourth quarter 2022 results and concerns about poor levels of financial productivity in the aftermath of the company’s acquisition of Shred-It . Additionally, the company’s margins were down, despite the management’s promise to stabilize margins.
Conversely, shares of H&R Block, the world’s largest tax agent, continued its strong performance in 2023. Performance continued in the latter part of the year, with the company reporting better-than-expected full-year results in August 2023. The efforts of the new management team at IT outsourcer Cognizant were rewarded with a significant increase in share price during the year. A re-incentivized sales team with a greater emphasis on variable remuneration resulted in record bookings, with flow-on benefits for employee retention. This was achieved despite macro-headwinds lowering industry discretionary spend. During the period, the shares of Dentsply Sirona, the world’s largest manufacturer of professional dental products and technologies, rose. At its November 2023 investor day, the company outlined a path to achieve US$3 in EPS by 2026, up from an estimated US$1.80-US$1.85 in 2023. Throughout most of 2023, Ferrovial,
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a global toll road and airport operator, delivered strong performance. The company reported better-than-expected full-year 2022 proportional EBITDA, primarily driven by the impressive performance of US Managed Lanes, which exceeded expectations with significant year-over-year EBITDA growth.
Lazard Global Equity Select Portfolio
For the year ended December 31, 2023, the Lazard Global Equity Select Portfolio’s Institutional Shares posted a total return of 17.05%, while Open Shares posted a total return of 16.73%, as compared with the 22.20% return for the MSCI ACWI.
The Portfolio was hurt by an overweight position in consumer staples and underperformance in Estée Lauder and Dollar General. Estée Lauder, a prestige beauty company, fell after its management issued lower-than-expected earnings guidance, citing weaker Chinese travel retail. Travel restrictions in China have proven to be a headwind to Estee’s travel retail segment which comprises duty-free retail locations primarily in airports and downtown stores. Excluding Chinese travel retail, sales growth and share gains in most markets have been encouraging. The Portfolio had owned discount retailer Dollar General since April 2019, as the Portfolio management team believed it was a high-quality business. The company had a strong history of sales growth and an attractive return profile. More recently, the business came under pressure that the Portfolio management team believes will endure, and there is a lack of confidence that the company would be able to sustain its high returns. The company’s same-store sales performance has been weaker than expected, and it has lost market share to reinvigorated peers. As a result, the stock was sold during the second quarter. In addition, the seven largest companies in the MSCI ACWI, the so-called “Magnificent Seven”, accounted for 42% of the index’s return year-to-date and ended the fourth quarter at a combined weight of 16.9%. This is a remarkable considering the index is composed of roughly 2,500 companies. The Portfolio management continues to believe the fundamentals of the Portfolio holdings Microsoft, Alphabet, and Amazon are attractive, but the Portfolio is not exposed to Apple, Tesla, Nvidia, and Meta. Not owning these four stocks, whose performance has primarily been driven by multiple expansion, cost the Portfolio more 360 bps in 2023.
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A lack of exposure to the energy sector contributed to performance, as oil prices continued to fall due to an increase in supply. The Portfolio does not invest in commodity-related businesses due to their low levels of financial productivity and lack of a sustainable competitive advantage. The lack of exposure to the utilities sector also contributed to performance. TopBuild, an insulation and building materials installer for the US construction industry, rose after the company reported better-than-expected earnings despite headwinds from residential real estate demand. The company’s management also raised guidance, taking a cautiously optimistic view on 2024 demand.
Lazard Global Listed Infrastructure Portfolio
For the year ended December 31, 2023, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of 10.89%, while Open Shares posted a total return of 10.60%, as compared with the 4.32% return for the MSCI World Core Infrastructure® (USD) Index and the 23.79% return for the MSCI World® Index.
Global toll road and airport operator Ferrovial’s success can be attributed to its managed lane toll roads in the US, which exceeded our forecast for the entire year’s EBITDA within the first six months, due to higher tolls and stronger traffic than expected. French concession and construction company Vinci performed strongly as the company’s planned tariff increase in its French motorway business was implemented, and Vinci delivered record levels of cash generation and robust traffic data. The UK diversified utility National Grid performed well, as inflation remained at double digits despite abating energy prices. The UK continues to have the highest inflation among G7 economies, and the company is a direct beneficiary of this, as its regulated asset base is directly indexed to inflation.
Exelon, a US utility, fell after the company filed for a multi-year settlement in Illinois for its Commonwealth Edison (ComEd) utility and as the long-awaited regulatory decision for ComEd did not meet expectations. Satellite operator Eutelsat detracted from performance following the release of disappointing results over the period; total revenues fell 2.4% but were above consensus for the 2023-24 fiscal year first quarter.
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Lazard Global Strategic Equity Portfolio
For the year ended December 31, 2023, the Lazard Global Strategic Equity Portfolio’s Institutional Shares posted a total return of 15.76%, while Open Shares posted a total return of 15.42%, as compared with the 22.20% return for the MSCI ACWI.
Stock selection in the financials, information technology, and communication services sectors detracted from relative performance. Shares of Estée Lauder pulled back sharply after the company reported disappointing sales in its travel retail division. Dollar General underperformed following a disappointing earnings update. The rollback of some fiscal support measures for low-income groups in the US and general pressure on disposable incomes caused a weakness in sales. Management lowered the outlook for margins. The Portfolio had reduced its position ahead of the results announcement and sold the remaining shares as the company adjusts to a tougher trading environment. AIA Group has been under pressure in a weak environment for Chinese stocks. While the reopening of the borders to China drove some optimism early in the year, it became clear that the overall economic recovery was more muted than expected. The Portfolio’s lack of exposure to some of the large US technology companies (e.g., Nvidia, Apple, Amazon, and Meta) was the biggest headwind to relative performance for the year. The large cap effect noted above has been particularly pronounced in the US, where the market cap-weighted S&P500 Index significantly outperformed the equal-weighted index in the first nine months of the year.
Conversely, stock selection in the healthcare and utilities sectors contributed to relative performance. Novo Nordisk shares delivered strong gains on the back of data released from its SELECT trial. The data showed a greater than expected reduction in cardiovascular events in a patient population taking Novo’s GLP-1 drug. The results strengthen the case for prescribing, and reimbursing Novo’s drug portfolio and expand into the treatment of obesity. Microsoft’s shares outperformed after reporting good results in Azure, its cloud business. Growth rates for the industry have been under some pressure from increased customer scrutiny and efforts to optimize cloud budgets. The results alleviated these
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fears, while management also noted continued progress to integrate AI features into the cloud offering. Shares of Applied Materials performed well after Nvidia reported strong demand for the company’s leading-edge chips. The company reported good results over the course of the year, resulting in positive revisions to the outlook.
Lazard International Equity Advantage Portfolio
For the year ended December 31, 2023, the Lazard International Equity Advantage Portfolio’s Institutional Shares posted a total return of 19.82%, while Open Shares posted a total return of 19.52%, as compared with the 15.62% return for the MSCI ACWI ex-US Index.
In a strong year for non-US stocks, stock selection accounted for the excess return, while sector positioning and operating cash detracted. The Portfolio benefitted from an overweight in information technology and an underweight in consumer staples. This was offset by the overweight in consumer discretionary and the underweight in materials. Stock selection was strongest in the consumer staples and health care sectors. Holdings in the information technology and communication services sectors underperformed. Selection in developed markets (Italy and Japan) was effective; selection in emerging markets (China and Turkey) detracted.
Stocks that benefitted the Portfolio included Novo Nordisk, a leading supplier of insulin and weight loss drugs (Wegovy). The company appears to be constrained only by manufacturing capacity, as demand appears robust, and its top-line growth and margins improved consistently throughout the year. Shin-Etsu Chemical supplies specialty industrial chemicals to a wide set of customers ranging from semiconductors to PVC pipes and is the largest supplier of raw silicon wafers. With growth in cash flow and recovery in the chip market, the stock rallied sharply during the year. UniCredit, the Italian bank, was one of the most undervalued stocks in the sector. The bank reported improvements in net interest margin and a lower cost structure, causing the stock to nearly double in price for the year.
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Detractors included Roche, which struggled in a difficult environment for large-cap pharmaceutical companies despite reporting earnings that were above expectations. The lack of a meaningful growth catalyst has weighed on the business segment, and investors have turned elsewhere to find it. Delta Electronics has significant exposure to the data center and electric vehicle markets. A decline in corporate IT spending in 2023 and disappointing electric vehicle sales led to a selloff in the stock.
The Portfolio benefitted primarily from its exposure to value during the year, as the factor was rewarded for most of the year. Sentiment measures also worked well, except in the fourth quarter, due to the change in interest rate outlook. Quality measures did well in emerging markets but lagged in developed markets. Growth measures were flat over the course of the year.
Lazard International Equity Portfolio
For the year ended December 31, 2023, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of 16.43%, while Open Shares posted a total return of 16.11%, and R6 Shares posted a total return of 16.50%, as compared with the 18.24% return for the MSCI EAFE Index.
Stock markets in China and Hong Kong were among the worst performing in the world in 2023 due to growing concerns about China’s mounting economic woes and how Chinese policymakers intend to address them. As a result, the Portfolio’s China-based and Hong Kong-based holdings fell as part of a broader decline in Chinese stocks. Shares of Alibaba came under additional pressure due to news that the e-commerce giant was reassessing its plans to pursue separate listings for several divisions, which called into question its proposed plans to restructure the group. Many investors had hoped a simplification of the businesses would unlock value in the conglomerate structure and drive more accountability for individual divisions to generate higher financial returns. The fall in the stock price of Li-Ning, the Chinese sports apparel and equipment company, was attributed to a slower-than-expected recovery in Chinese consumer spending. Meanwhile, in the developed world, shares of Anglo American receded after the
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UK-based miner announced a major cut in production guidance in December to maintain profitability.
Shares of Disco Corporation traded higher after the Japanese manufacturer that provides dicers for cutting semiconductor chips from wafers, and grinders and polishers that shave silicon wafers to the correct thickness, reported second-quarter results that exceeded consensus estimates and issued better-than-expected guidance for the third quarter, thanks to growing demand for generative artificial intelligence. Several stocks in the industrials sector were among the top contributors. Shares of Ryanair advanced after Europe’s leading discount air carrier, based in Ireland, reported strong third-quarter results and noted solid demand for air travel, with a positive outlook for pricing. Cash flow generation was strong, which underpins further buybacks and dividends. Shares of RELX rose after the UK-based professional publisher that owns quality information assets and focuses on the development of sophisticated information-based analytics and decision analytics tools that are of high value to customers reported an encouraging nine-month trading update, highlighted by better-than-expected revenue growth. The company’s shares received an additional boost from the successful launch of its AI product in the United States.
Lazard International Equity Select Portfolio
For the year ended December 31, 2023, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of 12.06%, while Open Shares posted a total return of 11.83%, as compared with the 15.62% return for the MSCI ACWI ex-US.
The largest contributor to underperformance was the collective impact of the Portfolio’s investments in China and Hong Kong. These stocks cost the Portfolio roughly 330 bps for the full year. Thus far, China has proven to be a value trap, as valuations that the Portfolio management team thought were already attractive earlier in the year have fallen further to 20-year low discounts compared to both emerging and developed markets. The underperformance of China over the past few years is, by far, the largest the Portfolio management team has seen in more than 20 years. The Chinese
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economy continues to grow, albeit at lower rates than investors previously thought, and government policy has been incrementally supportive of the property market and consumers. Alibaba is the largest Chinese e-commerce company. Shares fell amidst a weak Chinese equity market, detracting from relative returns. Additionally, news that the company was reassessing its plans to pursue separate listings for several divisions cast a shadow over the proposed plans to restructure the group. Many investors had hoped a simplification of the businesses would unlock value in the conglomerate structure and drive more accountability for individual divisions to generate higher financial returns.
Many semiconductor names performed well during the year. Shares of Disco Corporation, the Japanese manufacturer of dicers for cutting semiconductor chips from wafers, and grinders and polishers that shave silicon wafers to the correct thickness, rose after the company reported second-quarter results. Third quarter guidance was better than expected, citing higher generative AI demand. In the industrials sector, shares of Ireland-based discount air carrier Ryanair performed well. Shares rose after the company reported strong results in November. The company noted continued strong demand for air travel, with a positive outlook for pricing. Cash flow generation was strong, which underpins further buybacks and dividends. Also in the sector, shares of RELX contributed positively to relative returns. RELX, based out of the UK, is a professional publisher that owns quality information assets and focuses on the development of sophisticated information-based analytics and decision analytics tools that are of high value to customers. Shares rose after the company reported its nine-month trading update; underlying revenue growth came in slightly ahead of consensus estimates at 8%. Following this update, later in October, RELX officially launched its AI product in the United States. The release cited unprecedented pre-sales. The Portfolio management team has already seen growth accelerate in the legal segment, driven by the shift towards analytics.
Lazard International Quality Growth Portfolio
For the year ended December 31, 2023, the Lazard International Quality Growth Portfolio’s Institutional Shares posted a total return
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of 17.83%, while Open Shares posted a total return of 17.57%, as compared with the 15.62% return for the MSCI ACW ex-US Index.
Shares of Japanese animation company, Toei Animation, rose after the company reported results in late October. The management upgraded revenue and net income guidance by 14% and 12.5%, respectively, with the lower profit accounting for an accelerated advertising spend. Elsewhere, shares of UK-based professional publisher RELX rose after the company reported its nine-month trading update; underlying revenue growth came in slightly ahead of consensus estimates at 8%. Following the update, later in October, RELX officially launched its AI product in the United States. The release cited unprecedented pre-sales. Shares of Partners Group, a leading private equity firm headquartered in Switzerland, also rose in the fourth quarter after it reported consensus-beating first-half results in September, which included better AUM growth.
In contrast, shares of global insurance broker and consultant Aon underperformed after announcing plans in December to acquire NFP, a US-centric risk and benefits broker, for $14.3 billion. As a broker and an asset-light company in a fairly consolidated industry, Aon generates strong returns on capital, which the Portfolio management team believes will be sustained due to strong pricing power (particularly in its insurance brokerage business) and cash flow generation and may benefit from margin expansion opportunities in the longer term as it digests this acquisition. Elsewhere, shares of Danish biotech company Genmab underperformed after Johnson & Johnson, its main commercial partner, reported sales of Darzalex, its biggest drug, were slightly below consensus expectations. Shares of UK-based consumer goods company Unilever also declined after reporting a mixed quarter. Stronger-than-expected performance due to volume growth in its home and personal care business was offset by a weaker ice cream business, which was impacted by SKU reductions and unfavorable weather.
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Lazard International Small Cap Equity Portfolio
For the year ended December 31, 2023, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of 11.55%, while Open Shares posted a total return of 11.24%, as compared with the 13.16% return for the MSCI EAFE Small Cap® Index.
In the financials sector, shares of CAB Payments, a UK-listed B2B payments and foreign exchange services provider, detracted from relative performance, as the stock underperformed after the company issued a profit warning in October. Management noted ongoing challenges because of unexpected regulatory changes in two key foreign exchange corridors (Central African Franc and West African Franc). The Portfolio sold the position in the fourth quarter. In the pharmaceuticals sector, shares of Shin Nippon Biomedical, a Japan-listed contract research organization, also detracted, underperforming amid uncertainty stemming from its acquisition of Satsuma and the pending FDA approval of that company’s nasal migraine treatment.
In the consumer discretionary sector, shares of Jumbo, a Greece-listed retailer of baby, seasonal, decorative, and other items, contributed to relative performance, rising amid broad strength in sales growth, profitability, and capital returns to shareholders (e.g., special dividends) during the period. In the information technology sector, shares of ASM International, a Dutch-listed maker of semiconductor manufacturing equipment, also contributed, as the stock rose in response to heightened investor expectations for demand amid the proliferation of artificial intelligence.
Lazard International Strategic Equity Portfolio
For the year ended December 31, 2023, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of 17.06%, while Open Shares posted a total return of 16.66%, and R6 Shares posted a total return of 17.04%, as compared with the 18.24% return for the MSCI EAFE Index.
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Stock selection in the financials, consumer discretionary, and real estate sectors detracted from relative performance. Aon shares came under pressure towards the end of the year. Company management announced a deal to acquire NFP, which would bolster the company’s presence in the middle market. The size of the transaction ($13.4bn) and expected timeline to get approval weighed on investor sentiment. In the health care sector, shares of pharmaceutical company Merck KGaA came under pressure over the course of 2023, as biopharma customers continued to destock inventories. Declining demand from COVID-related activities, and improved lead-times in supply chains, prompted efforts to reduce inventory levels across the industry. Meanwhile, a muted funding environment, and more focus on cost among large pharmaceutical companies, weighed on growth in the sector. Shares of another pharmaceuticals company, Genmab also retrenched over the course of 2023 on reports that sales of one of their key drug, Darzalex, was slightly weaker than expected. This added to the uncertainty heading into a key pipeline update, which would effectively extend this important drug franchise.
Stock selection in the information technology, consumer staples and health care sectors contributed to relative performance. Shares of Advantest, the Japanese semiconductor testing company, reacted very favorably to a report from Nvidia highlighting strong demand for leading edge chips among their hyperscale customers. Advantest is the leading provider of test equipment to high performance computing companies, like Nvidia, and Advantest has started to articulate the favorable impact on their financials as this part of the business continues to grow. Ryanair reported strong results over the course of the year. The Ireland-based discount air carrier noted continued strong demand for air travel with a positive outlook for pricing. Cash flow generation was very strong, which underpins potential further buybacks and dividends to shareholders. RELX reported results over the course of the year showing continued good momentum in the business – particularly the exhibitions business, which is now running ahead of pre-COVID levels. Management also noted good progress with customers trialing the recently launched AI product in their legal practice.
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Lazard Managed Equity Volatility Portfolio
For the year ended December 31, 2023, the Lazard Managed Equity Volatility Portfolio’s Institutional Shares posted a total return of 7.65%, while Open Shares posted a total return of 7.39%, as compared with the 23.79% return for the MSCI World® Index.
Stock selection was led by utilities and energy, while the underweight to energy and financials contributed most to performance. Regionally, stock selection was strongest in Denmark and Singapore, and weakest in the US and Canada. Stocks that provided the largest contribution to excess returns included: Eli Lilly, as the stock rallied over the period. The company’s innovative culture and strong financial commitment to developing cutting-edge drugs distinguish it from competitors and drive its long-term growth. The growth potential has increased as the company launches multiple new blockbuster products, and the impact of patent losses diminishes. Novo Nordisk maintained its robust performance, raising its full-year 2023 guidance due to heightened demand for weight-loss drugs Wegovy and Ozempic (off-label). The company’s innovation in the cardiometabolic field and strategic capital allocation contributed significantly to its success. Osaka Gas had a sharp rebound in October following the company’s earnings call. Additionally, the company announced plans to initiate a buyback of up to 15 million shares, amounting to a maximum of JPY20bn.
In contrast, Bristol-Myers Squibb Company’s stock has been adversely affected by Bayer’s decision to halt the Phase 3 trial for its Factor XI (FXI) drug, as BMS’s competing medication, Milvexian, is also undergoing Phase 3 trials. Consequently, the company faces a reduced probability of achieving its projected peak unadjusted sales figures. Hershey’s stock price has dropped approximately 17% since January and about 30% from its peak in early May. The market remains unfavorable even with decent third-quarter results. This decline can be attributed to various concerns, such as potential volume reduction due to the increased use of weight-loss drugs and the possibility of budget-conscious consumers opting for more essential, daily items instead of confectionery products. General Mills’ shares declined significantly over the period. The pet
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segment struggled in recent quarters, with flat sales making it the only segment that did not grow. Widespread organic sales and volume declines across segments, coupled with a significantly reduced sales outlook for the full year 2024, overshadowed any positive sentiment stemming from improved margins and EPS performance.
Lazard US Equity Concentrated Portfolio
For the year ended December 31, 2023, the Lazard US Equity Concentrated Portfolio’s Institutional Shares posted a total return of 16.30%, while Open Shares posted a total return of 16.02% and R6 Shares posted a total return of 16.73%, as compared with the 26.29% return for the S&P 500 Index.
Detractors from relative performance included dental equipment maker Envista. Shares fell after management significantly reduced expectations for 2023 and 2024. Given the widened range of uncertainty for the company, the Portfolio management team sold the position. Shares of cell tower operator Crown Castle fell along with its peers amid a selloff in high-yielding bond proxies and concerns around the durability of the 5G investment cycle. Shares of specialty auto parts retailer LKQ declined after the company announced plans to acquire paint maker Uni-Select in February 2023, as LKQ would assume additional leverage in order to complete the deal. Shares also declined late in the year after the company reported disappointing fourth-quarter results and lowered guidance due to transitory issues in its European business.
Contributors to relative performance included Google parent, Alphabet, as the company’s management announced workforce restructuring and other efficiency initiatives early in the year, which investors viewed as a sign of cost discipline in a volatile macroeconomic environment. The market was also optimistic after the company showcased its artificial intelligence capabilities across its product suite at its annual developer conference. Data solutions provider Verisk reported generally solid earnings, driven by strong organic revenue growth.
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Lazard US Equity Focus Portfolio
For the year ended December 31, 2023, the Lazard US Equity Focus Portfolio’s Institutional Shares posted a total return of 19.77%, while Open Shares posted a total return of 19.53% and R6 Shares posted a total return of 19.77%, as compared with the 26.29% return for the S&P 500 Index.
Stock selection and an underweight in the energy sector contributed to performance. Shares of exploration and production company ConocoPhillips outperformed peers as the company reported generally solid quarterly results, driven by strong free cash flow generation. Lack of exposure to the utilities sector also contributed, as the sector was the worst performer in the index during the period.
Stock selection and an underweight position in information technology detracted. A lack of exposure to large, high-growth names that rallied in response to investor exuberance around artificial intelligence detracted from returns. Stock selection in the industrials sector also detracted. Railroad operator Norfolk Southern announced in February that one of its trains carrying hazardous materials had derailed in Ohio, leading to a controlled burn of vinyl chloride. Both the derailment and the controlled burn affected the surrounding community and the stock price. Stock selection in the consumer staples sector also detracted. Shares of prestige beauty company Estée Lauder fell after the company reported several quarters of disappointing results and management lowered earnings guidance, citing weaker Chinese travel retail.
Lazard US Small Cap Equity Select Portfolio
For the year ended December 31, 2023, the Lazard US Small Cap Equity Select Portfolio’s Institutional Shares posted a total return of 10.07%, while Open Shares posted a total return of 9.83%, and R6 Shares posted a total return of 9.95%, as compared with the 16.93% return for the Russell 2000® Index and the 17.74% return for the Russell 2000/2500 Linked Index.
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Stock selection in the health care sector detracted from relative performance. Shares of dental equipment and supplies manufacturer Envista fell after management’s updated view translated to a significant reduction in 2023 and 2024 expectations. Stock selection in the industrials sector also detracted. Shares of Leidos underperformed after the government services contractor reported weak quarterly results in May. Shares were also weighed down by the US debt ceiling crisis and the company’s CEO transition. In the materials sector, shares of Ingevity, a manufacturer of specialty chemical products principally sourced from renewable materials, fell. Higher input costs in the Performance Chemicals segment pressured margins throughout the year.
Stock selection in the consumer staples sector contributed to relative performance. Shares of baked goods manufacturer Hostess rose amid reports of takeover interest from multiple parties. In September, J.M. Smucker officially announced plans to acquire the company at what the Portfolio management team believed to be an attractive price of $5.6 billion, and subsequently exited our position. The Portfolio owned Hostess securities since April 2021, based on the thesis that it was a market share gainer and had strong pricing power in an attractive category. Smucker won a competitive bidding process, which included many of the larger snacking and packaged food peers. Stock selection in the communication services sector also contributed. Take-Two Interactive Software reported solid earnings and confirmed the December release of a trailer for GTA 6, one of the most highly anticipated video games in history. Investors viewed the confirmation favorably, as it is likely to be one of the largest entertainment releases of all time.
Lazard US Sustainable Equity Portfolio
For the year ended December 31, 2023, the Lazard US Sustainable Equity Portfolio’s Institutional Shares posted a total return of 15.88%, while Open Shares posted a total return of 15.58%, as compared with the 26.29% return for the S&P 500 Index for the period.
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Lack of exposure to energy and utilities helped performance, as the sectors were among the worst performers in the index during the period. Stock selection in the materials sector also contributed. Cleaning and sanitation services provider Ecolab reported strong quarterly results, with strong revenue driven by pricing. The position was sold in the second quarter, as the stock approached the target valuation.
Stock selection in the information technology sector detracted. Solar power solution provider SolarEdge was impacted by weaker-than-expected demand due to higher interest rates and the expiration of net-metering subsidies, coupled with an oversupply in the channel for solar equipment. The company is facing previously underappreciated competitive risks, including increased market entrants and the adoption of Chinese products that were traditionally shunned in the market. As a result, the Portfolio sold the position in the fourth quarter. Stock selection and an underweight position in consumer discretionary detracted from relative performance. Shares of Nike underperformed after the sports apparel company reported mixed quarterly results during the year and issued a negative full-year sales guidance revision.
Lazard US Systematic Small Cap Equity Portfolio
For the year ended December 31, 2023, the Lazard US Systematic Small Cap Equity Portfolio’s Institutional Shares posted a total return of 19.80%, while Open Shares posted a total return of 19.58%, as compared with the 16.93% return for the Russell 2000 Index for the period.
Both an overweight to, and stock selection in, the information technology and industrials sectors were significant contributors to relative performance. The rise in the stock price of technology hardware company Super Micro Computer Inc. was attributed to the significant growth in demand for computational hardware, driven by a surge in the use of AI technologies. Super Micro is a key player with industry partnerships that have led to significant growth in revenue and profitability. Builders FirstSource is a supplier of building materials and services that saw its shares trade higher throughout the year despite the slowdown in the
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residential housing market. The company’s leading digital solutions, long-term industry tailwinds and strong balance sheet were bolstered by news that the decline in housing was less than what investors had feared. CIRCOR International, a provider of mission-critical flow control products and services for the industrial, aerospace, and defense markets, was acquired by a leading global investment firm, in an all-cash transaction.
Negative stock selection from the healthcare, energy, and consumer staples sectors detracted from relative performance. Catalyst Pharmaceuticals, a pharmaceutical drug development company, saw its stock price fall after a competitor announced a generic version of the company’s flagship product. San Juan Basin Royalty Trust, an oil and gas trust company, was negatively impacted by a decrease in natural gas prices. Grindrod Shipping Holdings, a maritime transport company, saw its stock price fall due to weakening market conditions in the dry bulk business, resulting in lower revenue, losses, and deteriorating financial conditions.
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The Lazard Funds, Inc. Performance Overviews (unaudited)
Please see the “Notes to the Performance Overviews” for important information about the calculation of total returns, performance information generally, performance differences between Institutional Shares, Open Shares and R6 Shares, and the indices shown below.
Lazard Developing Markets Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Developing Markets Equity Portfolio and the MSCI Emerging Markets® Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One Year | Five Year | Ten Year | |||||
| Institutional | 9.64% | 3.12% | 1.62% | ||||
| Open | 9.34% | 2.84% | 1.29% | ||||
| MSCI Emerging Markets Index | 9.83% | 3.69% | 2.66% |
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Lazard Emerging Markets Core Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Core Equity Portfolio and the MSCI Emerging Markets Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Ten | Since | ||||||
| Year | Year | Year | Inception | † | |||||
| Institutional | 12.29% | 1.25% | 1.14% | 0.95% | |||||
| Open | 12.05% | 0.94% | 0.80% | 0.61% | |||||
| R6 | 12.32% | 1.28% | N/A | -2.22% | |||||
| MSCI Emerging Markets Index | 9.83% | 3.69% | 2.66% | 2.32% (Institutional and Open Shares) 0.29% (R6 Shares) |
| † | The inception date for the Institutional and Open Shares was October 31, 2013 and for the R6 Shares was April 6, 2018. |
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Lazard Emerging Markets Equity Advantage Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Equity Advantage Portfolio and the MSCI Emerging Markets Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Since | |||||
| Year | Year | Inception | † | ||||
| Institutional | 12.64% | 4.90% | 3.70% | ||||
| Open | 12.36% | 4.59% | 3.40% | ||||
| R6 | N/A | N/A | 7.98% | ||||
| MSCI Emerging Markets Index | 9.83% | 3.69% | 2.71% (Institutional Shares and Open Shares) 6.87% (R6 Shares) |
| † | The inception date for the Institutional and Open Shares was May 29, 2015 and for the R6 Shares was February 22, 2023. |
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Lazard Emerging Markets Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Equity Portfolio and the MSCI Emerging Markets Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Ten | Since | ||||||
| Year | Year | Year | Inception | † | |||||
| Institutional | 22.39% | 5.32% | 2.28% | 6.05% | |||||
| Open | 22.03% | 5.04% | 2.02% | 5.72% | |||||
| R6 | 22.37% | 5.33% | N/A | 2.99% | |||||
| MSCI Emerging Markets Index | 9.83% | 3.69% | 2.66% | 4.89% (Institutional Shares) 5.28% (Open Shares) 3.21% (R6 Shares) |
| † | The inception date for the Institutional Shares was July 15, 1994, for the Open Shares was January 8, 1997 and for the R6 Shares was January 19, 2015. |
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Lazard Equity Franchise Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Equity Franchise Portfolio and the MSCI World® Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Since | |||||
| Year | Year | Inception | † | ||||
| Institutional | 18.70% | 11.20% | 8.67% | ||||
| Open | 18.42% | 10.91% | 8.38% | ||||
| MSCI World Index | 23.79% | 12.80% | 9.46% |
| † | The inception date for the Portfolio was September 29, 2017. |
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Lazard Global Equity Select Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Equity Select Portfolio and the MSCI ACWI®
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Ten | |||||
| Year | Year | Year | |||||
| Institutional | 17.05% | 10.98% | 7.96% | ||||
| Open | 16.73% | 10.67% | 7.66% | ||||
| MSCI ACWI | 22.20% | 11.72% | 7.93% |
Lazard Global Listed Infrastructure Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Listed Infrastructure Portfolio, the MSCI World Core Infrastructure (USD) Index and the MSCI World Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Ten | |||||
| Year | Year | Year | |||||
| Institutional | 10.89% | 8.91% | 9.64% | ||||
| Open | 10.60% | 8.64% | 9.36% | ||||
| MSCI World Core Infrastructure (USD) Index | 4.32% | 8.16% | 8.27% | ||||
| MSCI World Index | 23.79% | 12.80% | 8.60% |
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Lazard Global Strategic Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Strategic Equity Portfolio and the MSCI ACWI
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Since | |||||
| Year | Year | Inception | † | ||||
| Institutional | 15.76% | 11.31% | 7.01% | ||||
| Open | 15.42% | 11.02% | 6.70% | ||||
| MSCI ACWI | 22.20% | 11.72% | 7.71% |
| † | The inception date for the Portfolio was August 29, 2014. |
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Lazard International Equity Advantage Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Advantage Portfolio, the MSCI ACWI ex-USA Index, the MSCI EAFE/ACWI ex-US Linked Index and the MSCI EAFE® Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Since | |||||
| Year | Year | Inception | † | ||||
| Institutional | 19.82% | 7.89% | 4.10% | ||||
| Open | 19.52% | 7.61% | 3.81% | ||||
| MSCI ACWI ex-USA Index | 15.62% | 7.08% | 4.13% | ||||
| MSCI EAFE/ACWI ex-US Linked Index | 18.60% | 8.23% | 4.65% | ||||
| MSCI EAFE Index | 18.24% | 8.16% | 4.61% |
| † | The inception date for the Portfolio was May 29, 2015. |
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Lazard International Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Portfolio and the MSCI EAFE Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Ten | Since | ||||||
| Year | Year | Year | Inception | † | |||||
| Institutional | 16.43% | 6.74% | 3.20% | 5.62% | |||||
| Open | 16.11% | 6.46% | 2.92% | 4.57% | |||||
| R6 | 16.50% | 6.76% | N/A | 3.51% | |||||
| MSCI EAFE Index | 18.24% | 8.16% | 4.28% | 5.35% (Institutional Shares) 5.01% (Open Shares) 4.92% (R6 Shares) |
| † | The inception date for the Institutional Shares was October 29, 1991, for the Open Shares was January 23, 1997 and for the R6 Shares was April 1, 2015. |
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Lazard International Equity Select Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Equity Select Portfolio, the MSCI ACWI ex-USA Index and the MSCI EAFE/ACWI ex-US Linked Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Ten | |||||
| Year | Year | Year | |||||
| Institutional | 12.06% | 4.96% | 2.46% | ||||
| Open | 11.83% | 4.69% | 2.15% | ||||
| MSCI ACWI ex-USA Index | 15.62% | 7.08% | 3.83% | ||||
| MSCI EAFE/ACWI ex-US Linked Index | 15.62% | 7.08% | 3.83% |
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Lazard International Quality Growth Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Quality Growth Portfolio, the MSCI ACWI ex-USA Index and the MSCI ACWI ex-USA Growth Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Since | |||||
| Year | Year | Inception | † | ||||
| Institutional | 17.83% | 10.79% | 10.79% | ||||
| Open | 17.57% | 10.50% | 10.50% | ||||
| R6 | N/A | N/A | 11.90% | ||||
| MSCI ACWI ex-USA Index | 15.62% | 7.08% | 7.08% (Institutional and Open Shares) 9.75% (R6 Shares) | ||||
| MSCI ACWI ex-USA Growth Index | 14.03% | 7.49% | 7.49% (Institutional and Open Shares) 8.53% (R6 Shares) |
| † | The inception date for the Institutional and Open Shares was December 31, 2018 and for the R6 Shares was February 22, 2023. |
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Lazard International Small Cap Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Small Cap Equity Portfolio and the MSCI EAFE Small Cap® Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Ten | |||||
| Year | Year | Year | |||||
| Institutional | 11.55% | 5.61% | 3.20% | ||||
| Open | 11.24% | 5.36% | 2.95% | ||||
| MSCI EAFE Small Cap Index | 13.16% | 6.58% | 4.80% |
Lazard International Strategic Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Strategic Equity Portfolio and the MSCI EAFE Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Ten | Since | ||||||
| Year | Year | Year | Inception | † | |||||
| Institutional | 17.06% | 6.75% | 3.85% | 5.78% | |||||
| Open | 16.66% | 6.46% | 3.58% | 4.74% | |||||
| R6 | 17.04% | 6.75% | N/A | 4.48% | |||||
| MSCI EAFE Index | 18.24% | 8.16% | 4.28% | 4.76% (Institutional Shares) 4.08% (Open Shares) 5.60% (R6 Shares) |
| † | The inception date for the Institutional Shares was October 31, 2005, for the Open Shares was February 3, 2006 and for the R6 Shares was January 19, 2015. |
42 Annual Report
Lazard Managed Equity Volatility Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Managed Equity Volatility Portfolio and the MSCI World Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Since | |||||
| Year | Year | Inception | † | ||||
| Institutional | 7.65% | 6.63% | 5.64% | ||||
| Open | 7.39% | 6.37% | 5.34% | ||||
| MSCI World Index | 23.79% | 12.80% | 8.85% |
| † | The inception date for the Portfolio was May 29, 2015. |
Annual Report 43
Lazard US Equity Concentrated Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Equity Concentrated Portfolio, the S&P 500 Index and the Russell 1000 Value/S&P 500 Linked Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Ten | Since | ||||||
| Year | Year | Year | Inception | † | |||||
| Institutional | 16.30% | 11.01% | 9.59% | 8.25% | |||||
| Open | 16.02% | 10.72% | 9.27% | 7.94% | |||||
| R6 | 16.73% | 11.09% | N/A | 8.92% | |||||
| S&P 500 Index | 26.29% | 15.69% | 12.03% | 9.88% (Institutional and Open Shares) 13.62% (R6 Shares) | |||||
| Russell 1000 Value/S&P 500 Linked Index | 26.29% | 15.69% | 12.03% | 9.32% (Institutional and Open Shares) 13.62% (R6 Shares) |
| † | The inception date for the Institutional and Open Shares was September 30, 2005 and for the R6 Shares was November 15, 2016. |
44 Annual Report
Lazard US Equity Focus Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Equity Focus Portfolio and the S&P 500 Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Ten | Since | ||||||
| Year | Year | Year | Inception | † | |||||
| Institutional | 19.77% | 14.37% | 10.41% | 8.44% | |||||
| Open | 19.53% | 14.07% | 10.10% | 8.13% | |||||
| R6 | 19.77% | 14.36% | N/A | 10.50% | |||||
| S&P 500 Index | 26.29% | 15.69% | 12.03% | 9.62% (Institutional and Open Shares) 12.21% (R6 Shares) |
| † | The inception date for the Institutional and Open Shares was December 30, 2004 and for the R6 Shares was May 19, 2014. |
Annual Report 45
Lazard US Small Cap Equity Select Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Small Cap Equity Select Portfolio, the Russell 2000 Index, the Russell 2500 Index and the Russell 2000/2500 Linked Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Five | Ten | Since | ||||||
| Year | Year | Year | Inception | † | |||||
| Institutional | 10.07% | 9.13% | 6.86% | 9.95% | |||||
| Open | 9.83% | 8.81% | 6.54% | 7.71% | |||||
| R6 | 9.95% | N/A | N/A | 4.57% | |||||
| Russell 2000 Index | 16.93% | 9.97% | 7.16% | 9.24% (Institutional Shares) 7.95% (Open Shares) 6.50% (R6 Shares) | |||||
| Russell 2500 Index | 17.42% | 11.67% | 8.36% | 10.49% (Institutional Shares) 9.25% (Open Shares) 8.04% (R6 Shares) | |||||
| Russell 2000/2500 Linked Index | 17.74% | 11.73% | 8.39% | 9.79% (Institutional Shares) 8.60% (Open Shares) 8.11% (R6 Shares) |
| † | The inception date for the Institutional Shares was October 30, 1991, for the Open Shares was January 30, 1997 and for the R6 Shares was January 8, 2020. |
46 Annual Report
Lazard US Sustainable Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Sustainable Equity Portfolio and the S&P 500 Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Since | ||||
| Year | Inception | † | |||
| Institutional | 15.88% | 12.32% | |||
| Open | 15.58% | 12.02% | |||
| S&P 500 Index | 26.29% | 14.90% |
| † | The inception date for the Institutional Shares and Open Shares was June 30, 2020. |
Annual Report 47
Lazard US Systematic Small Cap Equity Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Systematic Small Cap Equity Portfolio and the Russell 2000 Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One | Since | ||||
| Year | Inception | † | |||
| Institutional | 19.80% | 1.40% | |||
| Open | 19.58% | 1.20% | |||
| R6 | N/A | 11.48% | |||
| Russell 2000 Index | 16.93% | -4.19% (Institutional and Open Shares) 8.55% (R6 Shares) |
| † | The inception date for the Institutional Shares and Open Shares was October 29, 2021 and for the R6 Shares was February 22, 2023. |
Notes to Performance Overviews:
Information About Portfolio Performance Shown Above
Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s administrator (“State Street”), or SS&C Global Investor and Distribution Solutions Inc., the Fund’s transfer agent and dividend disbursement agent (“SS&C GIDS”); without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized.
Performance results do not include adjustments made for financial reporting purposes in accordance with US Generally Accepted Accounting Principles (“GAAP”), if any, and also exclude one-time adjustments related to the receipt of settlement proceeds by the Lazard International Equity, Lazard International Small Cap Equity and Lazard Developing Markets Equity Portfolios from a class action lawsuit. For the Lazard Developing Markets Equity Portfolio, these proceeds impacted the total return of Open Shares but did not impact that of Institutional Shares; amounts may differ from amounts reported in the financial highlights.
48 Annual Report
The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of an investment in a Portfolio will fluctuate so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated, there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graphs and tables above do not reflect the deduction of taxes that a shareholder would pay on a Portfolio’s distributions or the redemption of Portfolio shares.
The performance of Institutional Shares, Open Shares and R6 Shares of a Portfolio, as applicable, may vary, primarily based on the differences in fees borne by shareholders investing in different classes of a Portfolio.
Information About Index Performance Shown Above
The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The indices are unmanaged, have no fees or costs and are not available for investment.
The MSCI ACWI is a free-float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI consists of 47 country indices comprising 23 developed and 24 emerging markets country indices.
The MSCI ACWI ex-USA Index is a free-float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. The MSCI ACWI ex-USA Index consists of 46 country indices comprising 22 developed and 24 emerging markets country indices.
The MSCI ACWI ex-USA Growth Index reflects the performance of large and mid-cap securities exhibiting overall growth style characteristics across 22 developed markets countries and 24 emerging markets countries. The growth characteristics are evaluated in connection with earnings per share and sales growth rates and trends.
The MSCI EAFE Index is a free-float-adjusted market capitalization index that is designed to measure developed markets equity performance, excluding the United States and Canada. The MSCI EAFE Index consists of 21 developed markets country indices.
The MSCI EAFE Small Cap Index targets all companies with market capitalizations below that of the companies in the MSCI EAFE Index and up to 99% coverage of the free-float-adjusted market capitalization in each market (subject to minimum investability criteria and a universal minimum size range). The MSCI EAFE Small Cap Index consists of 21 developed markets country indices.
The MSCI EAFE/ACWI ex-US Linked Index is an unmanaged index created by the Investment Manager which links the performance of the MSCI EAFE Index for all periods through June 30, 2010 (when the Lazard International Equity Select Portfolio’s benchmark index changed) and the MSCI ACWI ex-USA Index for all periods thereafter.
The MSCI Emerging Markets Index is a free-float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. The MSCI Emerging Markets Index consists of 24 emerging markets country indices.
The MSCI World Core Infrastructure (USD) Index (the “Infrastructure Index”) captures large and mid-cap securities across the 23 developed market countries. The
Annual Report 49
Infrastructure Index is designed to represent the performance of listed companies within the developed markets that are engaged in core industrial infrastructure activities. However, note that the Lazard Global Listed Infrastructure Portfolio invests in a range of companies globally, and is not limited to investing in developed markets countries.
The MSCI World Index is a free-float-adjusted market capitalization index that is designed to measure global developed markets equity performance. The MSCI World Index consists of 23 developed markets country indices.
The Russell 1000 Value/S&P 500 Linked Index is an unmanaged index created by the Investment Manager which links the performance of the Russell 1000® Value Index for all periods through May 30, 2012 (when the Lazard US Equity Concentrated Portfolio’s investment strategy changed) and the S&P 500 Index for all periods thereafter.
The Russell 2000 Index measures the performance of the small-cap segment of the US equity universe. The Russell 2000 Index is a subset of the Russell 3000® Index representing approximately 10% of the total market capitalization of that index. It includes approximately 2000 of the smallest securities based on a combination of their market cap and current index membership.
The Russell 2000/2500 Linked Index is an unmanaged index created by the Investment Manager, which links the performance of the Russell 2500 Index through August 31, 2023 to the Russell 2000 Index beginning on September 1, 2023 (when the Portfolio’s investment focus was changed from small-mid cap companies to small cap companies).
The Russell 2500 Index measures the performance of the small-to mid-cap segment of the US equity universe, commonly referred to as “smid” cap. The Russell 2500 Index is a subset of the Russell 3000 Index. The Russell 3000 Index measures the performance of the largest 3000 US companies, representing approximately 98% of the investable US equity market. The Russell 2500 Index includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership.
The S&P 500 Index is a market capitalization-weighted index of 500 companies in leading industries of the US economy.
50 Annual Report
The Lazard Funds, Inc.
Information About Your Portfolio’s Expenses (unaudited)
Expense Example
As a shareholder in a Portfolio, you incur ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2023 through December 31, 2023 and held for the entire period.
Actual Expenses
For each share class of the Portfolios, the first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each share class of the Portfolios, the second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the class’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
Annual Report 51
| Portfolios | Beginning Account Value 7/1/23 | Ending Account Value 12/31/23 | Expenses Paid During Period* 7/1/23 - 12/31/23 | Annualized Expense Ratio During Period 7/1/23 - 12/31/23 | ||||||||||||
| Developing Markets Equity | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,027.70 | $ | 5.67 | 1.11 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.61 | $ | 5.65 | 1.11 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,026.10 | $ | 6.95 | 1.36 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.35 | $ | 6.92 | 1.36 | % | ||||||||
| Emerging Markets Core Equity | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,027.80 | $ | 5.52 | 1.08 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.76 | $ | 5.50 | 1.08 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,026.50 | $ | 6.84 | 1.34 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.45 | $ | 6.82 | 1.34 | % | ||||||||
| R6 Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,028.20 | $ | 5.21 | 1.02 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.06 | $ | 5.19 | 1.02 | % | ||||||||
| Emerging Markets Equity Advantage | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,043.70 | $ | 4.64 | 0.90 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.67 | $ | 4.58 | 0.90 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,042.10 | $ | 5.92 | 1.15 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.41 | $ | 5.85 | 1.15 | % | ||||||||
| R6 Shares† | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,044.20 | $ | 4.38 | 0.85 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.92 | $ | 4.33 | 0.85 | % | ||||||||
52 Annual Report
| Portfolios | Beginning Account Value 7/1/23 | Ending Account Value 12/31/23 | Expenses Paid During Period* 7/1/23 - 12/31/23 | Annualized Expense Ratio During Period 7/1/23 - 12/31/23 | ||||||||||||
| Emerging Markets Equity | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,080.70 | $ | 5.72 | 1.09 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.71 | $ | 5.55 | 1.09 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,078.50 | $ | 7.02 | 1.34 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.45 | $ | 6.82 | 1.34 | % | ||||||||
| R6 Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,080.70 | $ | 5.72 | 1.09 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.71 | $ | 5.55 | 1.09 | % | ||||||||
| Equity Franchise | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,045.10 | $ | 5.10 | 0.99 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.21 | $ | 5.04 | 0.99 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,043.50 | $ | 6.18 | 1.20 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.16 | $ | 6.11 | 1.20 | % | ||||||||
| Global Equity Select | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,052.10 | $ | 4.55 | 0.88 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.77 | $ | 4.48 | 0.88 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,051.10 | $ | 5.95 | 1.15 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.41 | $ | 5.85 | 1.15 | % | ||||||||
Annual Report 53
| Portfolios | Beginning Account Value 7/1/23 | Ending Account Value 12/31/23 | Expenses Paid During Period* 7/1/23 - 12/31/23 | Annualized Expense Ratio During Period 7/1/23 - 12/31/23 | ||||||||||||
| Global Listed Infrastructure | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,040.40 | $ | 4.99 | 0.97 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.32 | $ | 4.94 | 0.97 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,039.00 | $ | 6.27 | 1.22 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.06 | $ | 6.21 | 1.22 | % | ||||||||
| Global Strategic Equity | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,064.50 | $ | 4.68 | 0.90 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.67 | $ | 4.58 | 0.90 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,063.40 | $ | 5.98 | 1.15 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.41 | $ | 5.85 | 1.15 | % | ||||||||
| International Equity Advantage | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,069.90 | $ | 4.23 | 0.81 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.12 | $ | 4.13 | 0.81 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,068.20 | $ | 5.47 | 1.05 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.91 | $ | 5.35 | 1.05 | % | ||||||||
54 Annual Report
| Portfolios | Beginning Account Value 7/1/23 | Ending Account Value 12/31/23 | Expenses Paid During Period* 7/1/23 - 12/31/23 | Annualized Expense Ratio During Period 7/1/23 - 12/31/23 | ||||||||||||
| International Equity | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,028.70 | $ | 4.24 | 0.83 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.02 | $ | 4.23 | 0.83 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,027.00 | $ | 5.57 | 1.09 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.71 | $ | 5.55 | 1.09 | % | ||||||||
| R6 Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,029.10 | $ | 4.09 | 0.80 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.17 | $ | 4.08 | 0.80 | % | ||||||||
| International Equity Select | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,016.90 | $ | 4.58 | 0.90 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.67 | $ | 4.58 | 0.90 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,016.20 | $ | 5.84 | 1.15 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.41 | $ | 5.85 | 1.15 | % | ||||||||
| International Quality Growth | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,046.70 | $ | 4.39 | 0.85 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.92 | $ | 4.33 | 0.85 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,045.80 | $ | 5.67 | 1.10 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.66 | $ | 5.60 | 1.10 | % | ||||||||
| R6 Shares† | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,047.20 | $ | 4.18 | 0.81 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.12 | $ | 4.13 | 0.81 | % | ||||||||
Annual Report 55
| Portfolios | Beginning Account Value 7/1/23 | Ending Account Value 12/31/23 | Expenses Paid During Period* 7/1/23 - 12/31/23 | Annualized Expense Ratio During Period 7/1/23 - 12/31/23 | ||||||||||||
| International Small Cap Equity | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,050.00 | $ | 5.32 | 1.03 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.01 | $ | 5.24 | 1.03 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,048.50 | $ | 6.61 | 1.28 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.75 | $ | 6.51 | 1.28 | % | ||||||||
| International Strategic Equity | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,045.20 | $ | 4.23 | 0.82 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.07 | $ | 4.18 | 0.82 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,043.40 | $ | 5.51 | 1.07 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.81 | $ | 5.45 | 1.07 | % | ||||||||
| R6 Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,045.10 | $ | 4.23 | 0.82 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.07 | $ | 4.18 | 0.82 | % | ||||||||
| Managed Equity Volatility | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,036.50 | $ | 3.95 | 0.77 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.32 | $ | 3.92 | 0.77 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,034.80 | $ | 5.23 | 1.02 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.06 | $ | 5.19 | 1.02 | % | ||||||||
56 Annual Report
| Portfolios | Beginning Account Value 7/1/23 | Ending Account Value 12/31/23 | Expenses Paid During Period* 7/1/23 - 12/31/23 | Annualized Expense Ratio During Period 7/1/23 - 12/31/23 | ||||||||||||
| US Equity Concentrated | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,018.60 | $ | 4.27 | 0.84 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.97 | $ | 4.28 | 0.84 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,018.00 | $ | 5.54 | 1.09 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.71 | $ | 5.55 | 1.09 | % | ||||||||
| R6 Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,019.20 | $ | 4.38 | 0.86 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.87 | $ | 4.38 | 0.86 | % | ||||||||
| US Equity Focus | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,074.50 | $ | 3.66 | 0.70 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.68 | $ | 3.57 | 0.70 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,073.60 | $ | 4.97 | 0.95 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.42 | $ | 4.84 | 0.95 | % | ||||||||
| R6 Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,074.50 | $ | 3.66 | 0.70 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.68 | $ | 3.57 | 0.70 | % | ||||||||
| US Small Cap Equity Select | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,063.20 | $ | 5.20 | 1.00 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.16 | $ | 5.09 | 1.00 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,062.50 | $ | 6.50 | 1.25 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,018.90 | $ | 6.36 | 1.25 | % | ||||||||
| R6 Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,063.10 | $ | 4.94 | 0.95 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.42 | $ | 4.84 | 0.95 | % | ||||||||
Annual Report 57
| Portfolios | Beginning Account Value 7/1/23 | Ending Account Value 12/31/23 | Expenses Paid During Period* 7/1/23 - 12/31/23 | Annualized Expense Ratio During Period 7/1/23 - 12/31/23 | ||||||||||||
| US Sustainable Equity | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,072.10 | $ | 3.92 | 0.75 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,021.42 | $ | 3.82 | 0.75 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,071.00 | $ | 5.22 | 1.00 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.16 | $ | 5.09 | 1.00 | % | ||||||||
| US Systematic Small Cap Equity | ||||||||||||||||
| Institutional Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,072.20 | $ | 4.70 | 0.90 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.67 | $ | 4.58 | 0.90 | % | ||||||||
| Open Shares | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,071.50 | $ | 6.00 | 1.15 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,019.41 | $ | 5.85 | 1.15 | % | ||||||||
| R6 Shares† | ||||||||||||||||
| Actual | $ | 1,000.00 | $ | 1,072.70 | $ | 4.44 | 0.85 | % | ||||||||
| Hypothetical (5% Return Before Expenses) | $ | 1,000.00 | $ | 1,020.92 | $ | 4.33 | 0.85 | % | ||||||||
| * | Expenses are equal to the annualized expense ratio, net of expenses, waivers and reimbursements, of each share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
| † | The inception date for the R6 Shares was February 22, 2023. |
58 Annual Report
The Lazard Funds, Inc.
Portfolio Holdings Presented by Sector December 31, 2023 (unaudited)
| Asset Class/Sector* | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio | ||||||||||||
| Equity | ||||||||||||||||
| Communication Services | 5.1 | % | 6.7 | % | 9.6 | % | 6.8 | % | ||||||||
| Consumer Discretionary | 14.1 | 14.7 | 12.6 | 9.5 | ||||||||||||
| Consumer Staples | 3.1 | 7.4 | 4.9 | 6.4 | ||||||||||||
| Energy | 4.6 | 7.9 | 4.8 | 8.3 | ||||||||||||
| Financials | 25.9 | 24.7 | 21.5 | 25.9 | ||||||||||||
| Health Care | 2.6 | 3.0 | 5.2 | 3.6 | ||||||||||||
| Industrials | 13.6 | 8.8 | 7.2 | 6.5 | ||||||||||||
| Information Technology | 27.6 | 20.0 | 23.7 | 20.7 | ||||||||||||
| Materials | 1.6 | 4.8 | 5.6 | 6.5 | ||||||||||||
| Real Estate | — | 0.2 | 1.3 | 0.5 | ||||||||||||
| Utilities | — | 0.7 | 2.1 | 1.6 | ||||||||||||
| Short-Term Investments | 1.8 | 1.1 | 1.5 | 3.7 | ||||||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| Asset Class/Sector* | Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | Lazard Global Listed Infrastructure Portfolio | Lazard Global Strategic Equity Portfolio | ||||||||||||
| Equity | ||||||||||||||||
| Communication Services | 10.1 | % | 7.4 | % | 2.3 | % | 8.0 | % | ||||||||
| Consumer Discretionary | 16.7 | 13.5 | — | 4.1 | ||||||||||||
| Consumer Staples | 8.7 | 10.5 | — | 4.6 | ||||||||||||
| Financials | 11.7 | 17.3 | — | 19.6 | ||||||||||||
| Health Care | 19.1 | 11.5 | — | 18.5 | ||||||||||||
| Industrials | 11.9 | 17.8 | 41.4 | 14.8 | ||||||||||||
| Information Technology | 6.1 | 19.7 | — | 26.7 | ||||||||||||
| Materials | 1.5 | 0.9 | — | 1.5 | ||||||||||||
| Utilities | 12.7 | — | 53.1 | 1.2 | ||||||||||||
| Short-Term Investments | 1.5 | 1.4 | 3.2 | 1.0 | ||||||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| * | Represents percentage of total investments. |
Annual Report 59
| Asset Class/Sector* | Lazard International Equity Advantage Portfolio | Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | Lazard International Quality Growth Portfolio | ||||||||||||
| Equity | ||||||||||||||||
| Communication Services | 4.4 | % | 4.0 | % | 4.3 | % | 7.6 | % | ||||||||
| Consumer Discretionary | 14.7 | 12.8 | 9.4 | 11.5 | ||||||||||||
| Consumer Staples | 5.8 | 11.1 | 6.3 | 9.6 | ||||||||||||
| Energy | 2.9 | 3.4 | 4.6 | — | ||||||||||||
| Financials | 19.0 | 13.8 | 18.9 | 18.2 | ||||||||||||
| Health Care | 12.5 | 9.0 | 10.4 | 6.6 | ||||||||||||
| Industrials | 13.0 | 22.5 | 20.6 | 20.5 | ||||||||||||
| Information Technology | 17.4 | 10.4 | 13.2 | 23.4 | ||||||||||||
| Materials | 4.9 | 5.7 | 6.3 | — | ||||||||||||
| Real Estate | 2.5 | 1.5 | 0.5 | — | ||||||||||||
| Utilities | 2.9 | 4.9 | 3.8 | — | ||||||||||||
| Short-Term Investments | — | 0.9 | 1.7 | 2.6 | ||||||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| Asset Class/Sector* | Lazard International Small Cap Equity Portfolio | Lazard International Strategic Equity Portfolio | Lazard Managed Equity Volatility Portfolio | Lazard US Equity Concentrated Portfolio | ||||||||||||
| Equity | ||||||||||||||||
| Communication Services | 2.1 | % | 3.9 | % | 9.1 | % | 12.7 | % | ||||||||
| Consumer Discretionary | 10.6 | 6.9 | 3.5 | 8.1 | ||||||||||||
| Consumer Staples | 7.7 | 9.6 | 19.2 | 1.6 | ||||||||||||
| Energy | 2.8 | 1.8 | 1.1 | — | ||||||||||||
| Financials | 11.4 | 18.5 | 15.7 | 18.0 | ||||||||||||
| Health Care | 6.8 | 14.6 | 18.6 | 11.7 | ||||||||||||
| Industrials | 28.0 | 23.4 | 8.6 | 13.1 | ||||||||||||
| Information Technology | 10.6 | 14.9 | 7.9 | 16.2 | ||||||||||||
| Materials | 5.6 | 1.2 | 1.4 | 4.0 | ||||||||||||
| Real Estate | 10.2 | 0.4 | 3.9 | 10.2 | ||||||||||||
| Utilities | 3.5 | 3.3 | 10.4 | — | ||||||||||||
| Short-Term Investments | 0.7 | 1.5 | 0.6 | 4.4 | ||||||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| * | Represents percentage of total investments. |
60 Annual Report
| Asset Class/Sector* | Lazard US Equity Focus Portfolio | Lazard US Small Cap Equity Select Portfolio | Lazard US Sustainable Equity Portfolio | Lazard US Systematic Small Cap Equity Portfolio | ||||||||||||
| Equity | ||||||||||||||||
| Communication Services | 7.6 | % | 5.3 | % | — | % | 4.2 | % | ||||||||
| Consumer Discretionary | 10.3 | 12.1 | 4.9 | 18.2 | ||||||||||||
| Consumer Staples | 4.1 | 2.8 | 5.1 | 2.1 | ||||||||||||
| Energy | 3.3 | 6.4 | — | 0.6 | ||||||||||||
| Financials | 22.0 | 16.1 | 13.3 | 8.3 | ||||||||||||
| Health Care | 14.8 | 14.9 | 22.2 | 13.1 | ||||||||||||
| Industrials | 9.5 | 15.9 | 15.0 | 23.1 | ||||||||||||
| Information Technology | 19.2 | 13.6 | 30.9 | 21.8 | ||||||||||||
| Materials | 2.1 | 5.3 | 2.8 | 2.0 | ||||||||||||
| Real Estate | 2.2 | 5.6 | 2.5 | 5.0 | ||||||||||||
| Utilities | — | 2.0 | — | 0.5 | ||||||||||||
| Short-Term Investments | 4.9 | — | 3.3 | 1.1 | ||||||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
| * | Represents percentage of total investments. |
Annual Report 61
The Lazard Funds, Inc. Portfolios of Investments
December 31, 2023
The accompanying notes are an integral part of these financial statements.
62 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Developing Markets Equity Portfolio (continued) | ||||||||
| Zhongsheng Group Holdings Ltd. | 182,000 | $ | 438,969 | |||||
| ZTO Express Cayman, Inc. ADR | 47,936 | 1,020,078 | ||||||
| 22,326,586 | ||||||||
| Hong Kong | 1.3% | ||||||||
| Techtronic Industries Co. Ltd. | 98,002 | 1,172,168 | ||||||
| Hungary | 2.6% | ||||||||
| Richter Gedeon Nyrt. | 97,037 | 2,447,377 | ||||||
| India | 12.6% | ||||||||
| Bajaj Finance Ltd. | 13,454 | 1,183,241 | ||||||
| HDFC Bank Ltd. ADR | 42,377 | 2,843,921 | ||||||
| ICICI Bank Ltd. ADR | 128,316 | 3,059,053 | ||||||
| Jio Financial Services Ltd. (*) | 64,556 | 180,480 | ||||||
| Mphasis Ltd. | 37,362 | 1,228,023 | ||||||
| Reliance Industries Ltd. | 74,033 | 2,297,501 | ||||||
| UPL Ltd. | 117,972 | 831,815 | ||||||
| 11,624,034 | ||||||||
| Indonesia | 4.4% | ||||||||
| Bank Central Asia Tbk PT | 2,870,400 | 1,750,743 | ||||||
| Bank Rakyat Indonesia Persero Tbk PT | 6,308,349 | 2,338,773 | ||||||
| 4,089,516 | ||||||||
| Macau | 1.2% | ||||||||
| Sands China Ltd. (*) | 389,600 | 1,136,932 | ||||||
| Mexico | 4.6% | ||||||||
| Arca Continental SAB de CV | 84,900 | 926,995 | ||||||
| Grupo Financiero Banorte SAB de CV, Class O | 327,157 | 3,289,873 | ||||||
| 4,216,868 | ||||||||
| Peru | 1.1% | ||||||||
| Credicorp Ltd. | 6,821 | 1,022,672 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 63
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Developing Markets Equity Portfolio (continued) | ||||||||
| Philippines | 3.1% | ||||||||
| BDO Unibank, Inc. | 755,262 | $ | 1,777,960 | |||||
| International Container Terminal Services, Inc. | 241,559 | 1,069,869 | ||||||
| 2,847,829 | ||||||||
| Poland | 1.6% | ||||||||
| InPost SA (*) | 106,931 | 1,478,275 | ||||||
| South Africa | 4.7% | ||||||||
| Capitec Bank Holdings Ltd. | 17,083 | 1,887,235 | ||||||
| Foschini Group Ltd. | 142,895 | 866,298 | ||||||
| Standard Bank Group Ltd. | 142,786 | 1,621,247 | ||||||
| 4,374,780 | ||||||||
| South Korea | 9.5% | ||||||||
| CJ Logistics Corp. | 6,954 | 685,313 | ||||||
| Samsung Electronics Co. Ltd. | 96,438 | 5,865,351 | ||||||
| SK Hynix, Inc. | 20,038 | 2,187,853 | ||||||
| 8,738,517 | ||||||||
| Taiwan | 17.2% | ||||||||
| ASE Technology Holding Co. Ltd. | 371,289 | 1,628,305 | ||||||
| Bizlink Holding, Inc. | 153,078 | 1,329,419 | ||||||
| Chroma ATE, Inc. | 200,000 | 1,384,751 | ||||||
| Hiwin Technologies Corp. | 104,714 | 800,043 | ||||||
| Lotes Co. Ltd. | 65,687 | 2,281,709 | ||||||
| MediaTek, Inc. | 56,000 | 1,844,398 | ||||||
| RichWave Technology Corp. (*) | 115,000 | 687,661 | ||||||
| Sercomm Corp. | 185,000 | 808,261 | ||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 266,000 | 5,119,299 | ||||||
| 15,883,846 | ||||||||
The accompanying notes are an integral part of these financial statements.
64 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Developing Markets Equity Portfolio (concluded) | ||||||||
| United States | 2.5% | ||||||||
| EPAM Systems, Inc. (*) | 2,837 | $ | 843,553 | |||||
| SharkNinja, Inc. | 15,595 | 797,996 | ||||||
| Tenaris SA ADR | 20,385 | 708,583 | ||||||
| 2,350,132 | ||||||||
| Total Common Stocks (Cost $71,738,079) | 91,055,357 | |||||||
| Short-Term Investments | 1.8% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $1,641,593) | 1,641,593 | 1,641,593 | ||||||
| Total Investments | 100.3% (Cost $73,379,672) | $ | 92,696,950 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.3)% | (294,759 | ) | ||||||
| Net Assets | 100.0% | $ | 92,402,191 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 65
The accompanying notes are an integral part of these financial statements.
66 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Core Equity Portfolio (continued) | ||||||||
| Ghana | 0.9% | ||||||||
| Kosmos Energy Ltd. (*) | 150,256 | $ | 1,008,218 | |||||
| Greece | 2.1% | ||||||||
| National Bank of Greece SA (*) | 198,514 | 1,377,567 | ||||||
| OPAP SA | 65,134 | 1,105,700 | ||||||
| 2,483,267 | ||||||||
| Hong Kong | 1.3% | ||||||||
| AIA Group Ltd. | 180,200 | 1,565,110 | ||||||
| India | 13.4% | ||||||||
| HDFC Bank Ltd. ADR | 53,282 | 3,575,755 | ||||||
| Hindalco Industries Ltd. | 169,575 | 1,250,397 | ||||||
| ICICI Bank Ltd. ADR | 73,792 | 1,759,201 | ||||||
| ITC Ltd. | 207,881 | 1,152,926 | ||||||
| Larsen & Toubro Ltd. | 48,376 | 2,047,728 | ||||||
| Reliance Industries Ltd. | 101,393 | 3,146,577 | ||||||
| Supreme Industries Ltd. | 17,831 | 972,804 | ||||||
| Tata Consultancy Services Ltd. | 42,696 | 1,944,050 | ||||||
| 15,849,438 | ||||||||
| Indonesia | 4.3% | ||||||||
| Astra International Tbk PT | 1,870,000 | 685,239 | ||||||
| Bank Central Asia Tbk PT | 2,800,400 | 1,708,047 | ||||||
| Bank Mandiri Persero Tbk PT | 4,161,400 | 1,632,398 | ||||||
| Telkom Indonesia Persero Tbk PT ADR | 42,646 | 1,098,561 | ||||||
| 5,124,245 | ||||||||
| Macau | 0.8% | ||||||||
| Galaxy Entertainment Group Ltd. | 167,000 | 933,404 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 67
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Core Equity Portfolio (continued) | ||||||||
| Mexico | 5.3% | ||||||||
| America Movil SAB de CV ADR | 39,223 | $ | 726,410 | |||||
| Arca Continental SAB de CV | 109,245 | 1,192,811 | ||||||
| Corp. Inmobiliaria Vesta SAB de CV ADR | 6,265 | 248,219 | ||||||
| Grupo Aeroportuario del Pacifico SAB de CV ADR | 6,411 | 1,123,335 | ||||||
| Grupo Financiero Banorte SAB de CV, Class O | 210,577 | 2,117,551 | ||||||
| Kimberly-Clark de Mexico SAB de CV, Class A | 373,174 | 838,823 | ||||||
| 6,247,149 | ||||||||
| Peru | 0.7% | ||||||||
| Credicorp Ltd. | 5,796 | 868,994 | ||||||
| Philippines | 2.1% | ||||||||
| BDO Unibank, Inc. | 448,839 | 1,056,611 | ||||||
| International Container Terminal Services, Inc. | 314,660 | 1,393,634 | ||||||
| 2,450,245 | ||||||||
| Russia | 0.0% | ||||||||
| Mobile TeleSystems PJSC ADR (*), (¢) | 45,259 | 0 | ||||||
| Sberbank of Russia PJSC (¢) | 213,889 | 0 | ||||||
| 0 | ||||||||
| Saudi Arabia | 2.2% | ||||||||
| Nahdi Medical Co. | 19,028 | 695,173 | ||||||
| Saudi National Bank | 183,129 | 1,887,924 | ||||||
| 2,583,097 | ||||||||
| South Africa | 4.5% | ||||||||
| Anglo American PLC | 50,089 | 1,256,894 | ||||||
| Bidvest Group Ltd. | 91,119 | 1,259,157 | ||||||
| Capitec Bank Holdings Ltd. | 11,079 | 1,223,947 | ||||||
| Shoprite Holdings Ltd. | 103,667 | 1,557,735 | ||||||
| 5,297,733 | ||||||||
The accompanying notes are an integral part of these financial statements.
68 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Core Equity Portfolio (continued) | ||||||||
| South Korea | 10.7% | ||||||||
| Kia Corp. | 15,987 | $ | 1,238,052 | |||||
| LG Chem Ltd. | 2,586 | 996,067 | ||||||
| Samsung Electronics Co. Ltd. | 82,142 | 4,995,869 | ||||||
| Shinhan Financial Group Co. Ltd. | 60,852 | 1,891,165 | ||||||
| SK Hynix, Inc. | 32,360 | 3,533,232 | ||||||
| 12,654,385 | ||||||||
| Taiwan | 15.6% | ||||||||
| ASE Technology Holding Co. Ltd. | 344,000 | 1,508,628 | ||||||
| Chailease Holding Co. Ltd. | 290,240 | 1,821,463 | ||||||
| CTBC Financial Holding Co. Ltd. | 1,386,000 | 1,278,313 | ||||||
| Eclat Textile Co. Ltd. | 53,789 | 983,247 | ||||||
| MediaTek, Inc. | 77,000 | 2,536,046 | ||||||
| Nien Made Enterprise Co. Ltd. | 103,000 | 1,182,460 | ||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 88,145 | 9,167,080 | ||||||
| 18,477,237 | ||||||||
| Thailand | 1.9% | ||||||||
| Home Product Center PCL (‡) | 2,141,000 | 733,896 | ||||||
| PTT Exploration & Production PCL (‡) | 332,300 | 1,455,470 | ||||||
| 2,189,366 | ||||||||
| United Arab Emirates | 1.5% | ||||||||
| Abu Dhabi Ports Co. PJSC (*) | 481,340 | 835,911 | ||||||
| ADNOC Drilling Co. PJSC | 874,549 | 900,299 | ||||||
| 1,736,210 | ||||||||
| United Kingdom | 1.4% | ||||||||
| Unilever PLC | 5,947 | 287,958 | ||||||
| Unilever PLC ADR | 27,983 | 1,356,616 | ||||||
| 1,644,574 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 69
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Core Equity Portfolio (concluded) | ||||||||
| United States | 1.1% | ||||||||
| Freeport-McMoRan, Inc. | 29,209 | $ | 1,243,427 | |||||
| Total Common Stocks (Cost $98,498,547) | 117,375,694 | |||||||
| Short-Term Investments | 1.1% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $1,258,062) | 1,258,062 | 1,258,062 | ||||||
| Total Investments | 100.5% (Cost $99,756,609) | $ | 118,633,756 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.5)% | (558,881 | ) | ||||||
| Net Assets | 100.0% | $ | 118,074,875 | ||||||
The accompanying notes are an integral part of these financial statements.
70 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 71
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| China Resources Power Holdings Co. Ltd. | 102,000 | $ | 204,176 | |||||
| China Tower Corp. Ltd., Class H | 2,980,000 | 312,530 | ||||||
| China United Network Communications Ltd., Class A | 346,400 | 213,642 | ||||||
| Chongqing Brewery Co. Ltd., Class A | 22,800 | 213,304 | ||||||
| Contemporary Amperex Technology Co. Ltd., Class A | 12,980 | 298,191 | ||||||
| CSPC Pharmaceutical Group Ltd. | 815,840 | 762,530 | ||||||
| ENN Natural Gas Co. Ltd., Class A | 106,897 | 253,370 | ||||||
| Haidilao International Holding Ltd. | 208,000 | 385,910 | ||||||
| Haier Smart Home Co. Ltd. Class H | 106,800 | 302,671 | ||||||
| Hangzhou Robam Appliances Co. Ltd., Class A | 86,600 | 265,607 | ||||||
| Huaibei Mining Holdings Co. Ltd., Class A | 89,700 | 210,215 | ||||||
| Industrial & Commercial Bank of China Ltd., Class H | 450,000 | 219,661 | ||||||
| JD.com, Inc., Class A | 61,654 | 888,658 | ||||||
| Jinan Acetate Chemical Co. Ltd. | 12,102 | 313,740 | ||||||
| Kanzhun, Ltd. ADR | 22,008 | 365,553 | ||||||
| KE Holdings, Inc. ADR | 25,060 | 406,223 | ||||||
| Kingnet Network Co. Ltd., Class A | 110,900 | 174,416 | ||||||
| Kuaishou Technology (*) | 74,700 | 504,624 | ||||||
| Kunlun Energy Co. Ltd. | 416,000 | 374,748 | ||||||
| Li Auto, Inc. ADR (*) | 17,219 | 644,507 | ||||||
| Meihua Holdings Group Co. Ltd., Class A | 143,800 | 193,464 | ||||||
| Meituan, Class B (*) | 87,870 | 926,154 | ||||||
| MINISO Group Holding Ltd. ADR | 14,403 | 293,821 | ||||||
| NetEase, Inc. | 62,400 | 1,158,107 | ||||||
| New Oriental Education & Technology Group, Inc. ADR (*) | 7,053 | 516,844 | ||||||
| Nongfu Spring Co. Ltd., Class H | 37,000 | 213,177 | ||||||
| PDD Holdings, Inc. (*) | 12,752 | 1,865,745 | ||||||
| People’s Insurance Co. Group of China Ltd., Class H | 1,588,000 | 487,492 | ||||||
| PetroChina Co. Ltd., Class H | 1,086,000 | 715,898 | ||||||
| PICC Property & Casualty Co. Ltd., Class H | 354,000 | 420,196 | ||||||
| Ping An Insurance Group Co. of China Ltd., Class H | 169,000 | 764,464 | ||||||
| Satellite Chemical Co. Ltd., Class A (*) | 136,200 | 284,529 | ||||||
The accompanying notes are an integral part of these financial statements.
72 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| SF Holding Co. Ltd., Class A | 24,300 | $ | 138,878 | |||||
| Shenzhen Mindray Bio-Medical Electronics Co. Ltd., Class A | 7,600 | 311,877 | ||||||
| Sungrow Power Supply Co. Ltd., Class A | 11,500 | 141,785 | ||||||
| Sunny Optical Technology Group Co. Ltd. | 37,000 | 340,196 | ||||||
| Suofeiya Home Collection Co. Ltd. Class A | 75,100 | 168,678 | ||||||
| Tencent Holdings Ltd. | 126,200 | 4,767,931 | ||||||
| Tencent Music Entertainment Group ADR (*) | 32,958 | 296,952 | ||||||
| Tian Di Science & Technology Co. Ltd., Class A | 380,600 | 291,819 | ||||||
| Tianqi Lithium Corp., Class H | 56,600 | 312,007 | ||||||
| Trip.com Group Ltd. ADR (*) | 7,857 | 282,931 | ||||||
| Vipshop Holdings Ltd. ADR (*) | 27,891 | 495,344 | ||||||
| Weichai Power Co. Ltd., Class H | 140,000 | 234,235 | ||||||
| Xiaomi Corp., Class B (*) | 408,800 | 813,904 | ||||||
| Yihai International Holding Ltd. | 178,000 | 282,508 | ||||||
| Yum China Holdings, Inc. | 9,795 | 415,602 | ||||||
| ZBOM Home Collection Co. Ltd., Class A | 72,240 | 170,592 | ||||||
| ZTO Express Cayman, Inc. ADR | 19,312 | 410,959 | ||||||
| 35,900,608 | ||||||||
| Colombia | 0.2% | ||||||||
| Bancolombia SA ADR | 8,754 | 269,361 | ||||||
| Egypt | 0.1% | ||||||||
| Commercial International Bank - Egypt (CIB) GDR | 100,188 | 128,241 | ||||||
| Greece | 0.9% | ||||||||
| Danaos Corp. | 2,749 | 203,591 | ||||||
| Eurobank Ergasias Services & Holdings SA, Class A (*) | 149,842 | 265,977 | ||||||
| National Bank of Greece SA (*) | 63,070 | 437,668 | ||||||
| Piraeus Financial Holdings SA (*) | 75,541 | 266,274 | ||||||
| 1,173,510 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 73
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| Hungary | 0.5% | ||||||||
| MOL Hungarian Oil & Gas PLC | 34,564 | $ | 281,551 | |||||
| Richter Gedeon Nyrt. | 12,549 | 316,499 | ||||||
| 598,050 | ||||||||
| India | 16.3% | ||||||||
| Adani Ports & Special Economic Zone Ltd. | 21,764 | 267,116 | ||||||
| Angel One Ltd. | 6,754 | 282,905 | ||||||
| Axis Bank Ltd. GDR | 4,333 | 285,554 | ||||||
| Bajaj Finance Ltd. | 2,015 | 177,214 | ||||||
| Bank of Baroda | 174,280 | 483,120 | ||||||
| BEML Ltd. | 8,140 | 276,205 | ||||||
| Birlasoft Ltd. | 30,352 | 262,643 | ||||||
| Britannia Industries Ltd. | 7,438 | 476,803 | ||||||
| Can Fin Homes Ltd. | 19,271 | 179,925 | ||||||
| Ceat Ltd. | 10,204 | 297,216 | ||||||
| Cipla Ltd. | 82,644 | 1,237,499 | ||||||
| Coforge Ltd. | 3,491 | 262,898 | ||||||
| Dr Reddy’s Laboratories Ltd. ADR | 28,507 | 1,983,517 | ||||||
| HCL Technologies Ltd. | 56,062 | 986,266 | ||||||
| HDFC Bank Ltd. ADR | 9,401 | 630,901 | ||||||
| Hindustan Aeronautics Ltd. | 31,984 | 1,077,718 | ||||||
| ICICI Bank Ltd. ADR | 46,546 | 1,109,657 | ||||||
| IDFC First Bank Ltd. (*) | 278,981 | 297,518 | ||||||
| Indiabulls Housing Finance Ltd. | 113,674 | 295,518 | ||||||
| Infosys Ltd. ADR | 31,261 | 574,577 | ||||||
| Jindal Stainless Ltd. | 41,164 | 282,591 | ||||||
| Karnataka Bank Ltd. | 83,754 | 235,314 | ||||||
| Karur Vysya Bank Ltd. | 127,139 | 257,718 | ||||||
| KPIT Technologies Ltd. | 16,480 | 299,320 | ||||||
| Larsen & Toubro Ltd. GDR | 12,110 | 515,908 | ||||||
| LIC Housing Finance Ltd. | 48,686 | 313,110 | ||||||
| Manappuram Finance Ltd. | 174,172 | 358,612 | ||||||
| Nestle India Ltd. | 1,437 | 458,663 | ||||||
| Piramal Enterprises Ltd. | 17,535 | 196,077 | ||||||
| Reliance Industries Ltd. GDR (#) | 13,005 | 813,015 | ||||||
The accompanying notes are an integral part of these financial statements.
74 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| Shriram Finance Ltd. | 13,847 | $ | 341,020 | |||||
| Sonata Software Ltd. | 42,054 | 374,783 | ||||||
| State Bank of India GDR | 22,186 | 1,712,858 | ||||||
| Sun Pharmaceutical Industries Ltd. | 64,227 | 970,731 | ||||||
| Supreme Industries Ltd. | 5,004 | 273,003 | ||||||
| Tata Communications Ltd. | 17,443 | 370,718 | ||||||
| Tata Consultancy Services Ltd. | 17,211 | 783,658 | ||||||
| Tata Motors Ltd. | 62,693 | 586,829 | ||||||
| Torrent Pharmaceuticals Ltd. | 8,371 | 231,782 | ||||||
| Union Bank of India Ltd. | 257,253 | 367,583 | ||||||
| Vedanta Ltd. | 129,836 | 403,202 | ||||||
| 21,591,265 | ||||||||
| Indonesia | 2.6% | ||||||||
| Astra International Tbk PT | 738,600 | 270,651 | ||||||
| Bank Mandiri Persero Tbk PT | 4,008,900 | 1,572,576 | ||||||
| Bank Rakyat Indonesia Persero Tbk PT | 3,266,800 | 1,211,142 | ||||||
| Sumber Alfaria Trijaya Tbk PT | 1,332,500 | 253,458 | ||||||
| Telkom Indonesia Persero Tbk. PT ADR | 6,707 | 172,772 | ||||||
| 3,480,599 | ||||||||
| Luxembourg | 0.2% | ||||||||
| Reinet Investments SCA | 9,510 | 242,749 | ||||||
| Malaysia | 0.9% | ||||||||
| CIMB Group Holdings Bhd. | 770,800 | 980,979 | ||||||
| My EG Services Bhd | 1,065,000 | 188,704 | ||||||
| 1,169,683 | ||||||||
| Mexico | 3.1% | ||||||||
| Arca Continental SAB de CV | 97,100 | 1,060,203 | ||||||
| Cemex SAB de CV (*) | 636,600 | 495,229 | ||||||
| Coca-Cola Femsa SAB de CV ADR | 13,625 | 1,289,470 | ||||||
| Fibra Uno Administracion SA de CV REIT | 252,700 | 453,881 | ||||||
| Kimberly-Clark de Mexico SAB de CV, Class A | 368,600 | 828,542 | ||||||
| 4,127,325 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 75
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| Philippines | 0.9% | ||||||||
| BDO Unibank, Inc. | 99,738 | $ | 234,793 | |||||
| International Container Terminal Services, Inc. | 154,060 | 682,334 | ||||||
| Metropolitan Bank & Trust Co. | 241,920 | 224,024 | ||||||
| 1,141,151 | ||||||||
| Poland | 1.2% | ||||||||
| KGHM Polska Miedz SA | 6,393 | 199,281 | ||||||
| Orange Polska SA | 150,692 | 311,927 | ||||||
| ORLEN SA | 67,713 | 1,126,993 | ||||||
| 1,638,201 | ||||||||
| Qatar | 0.2% | ||||||||
| Ooredoo QPSC | 72,445 | 216,462 | ||||||
| Romania | 0.2% | ||||||||
| NEPI Rockcastle NV | 32,327 | 223,158 | ||||||
| Russia | 0.0% | ||||||||
| PhosAgro PJSC (*), (¢) | 42 | 0 | ||||||
| Severstal PAO GDR (*), (¢) | 9,589 | 0 | ||||||
| 0 | ||||||||
| Saudi Arabia | 3.5% | ||||||||
| Almarai Co. JSC | 12,962 | 194,225 | ||||||
| Arabian Internet & Communications Services Co. | 3,949 | 364,480 | ||||||
| Co. for Cooperative Insurance | 11,556 | 401,687 | ||||||
| Elm Co. | 2,421 | 525,797 | ||||||
| Etihad Etisalat Co. | 24,765 | 326,221 | ||||||
| Nahdi Medical Co. | 6,548 | 239,226 | ||||||
| National Medical Care Co. | 6,685 | 310,840 | ||||||
| Riyadh Cables Group Co. | 22,979 | 564,865 | ||||||
| Saudi Arabian Oil Co. | 74,905 | 660,223 | ||||||
| Saudi Basic Industries Corp. | 9,473 | 210,403 | ||||||
| Saudi Telecom Co. | 81,345 | 877,180 | ||||||
| 4,675,147 | ||||||||
The accompanying notes are an integral part of these financial statements.
76 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| South Africa | 2.0% | ||||||||
| Absa Group Ltd. | 22,139 | $ | 197,602 | |||||
| African Rainbow Minerals Ltd. | 25,248 | 276,267 | ||||||
| FirstRand Ltd. | 100,524 | 403,518 | ||||||
| Gold Fields Ltd. ADR | 32,965 | 476,674 | ||||||
| Naspers Ltd., N Shares | 1,639 | 280,550 | ||||||
| Remgro Ltd. | 32,321 | 286,934 | ||||||
| Sappi Ltd. | 198,998 | 479,710 | ||||||
| Standard Bank Group Ltd. | 21,140 | 240,032 | ||||||
| 2,641,287 | ||||||||
| South Korea | 13.4% | ||||||||
| BGF retail Co. Ltd. | 1,729 | 175,668 | ||||||
| CJ CheilJedang Corp. | 844 | 212,055 | ||||||
| DB Insurance Co. Ltd. | 7,939 | 514,926 | ||||||
| Dongjin Semichem Co. Ltd. | 7,108 | 212,480 | ||||||
| Doosan Bobcat, Inc. | 12,347 | 481,234 | ||||||
| Ecopro Co. Ltd. | 317 | 158,043 | ||||||
| Eo Technics Co. Ltd. | 1,249 | 147,380 | ||||||
| Hanwha Aerospace Co. Ltd. | 5,796 | 558,099 | ||||||
| HMM Co. Ltd. | 17,850 | 270,917 | ||||||
| Hyundai Marine & Fire Insurance Co. Ltd. | 10,691 | 256,809 | ||||||
| Hyundai Rotem Co. Ltd. (*) | 18,460 | 379,586 | ||||||
| Industrial Bank of Korea | 30,456 | 280,169 | ||||||
| KB Financial Group, Inc. | 24,675 | 1,032,041 | ||||||
| Kia Corp. | 28,421 | 2,200,956 | ||||||
| KT Corp. | 13,256 | 353,459 | ||||||
| LG Chem Ltd. | 1,010 | 389,028 | ||||||
| LG Electronics, Inc. | 3,132 | 246,565 | ||||||
| Meritz Financial Group, Inc. | 16,012 | 733,692 | ||||||
| Orion Corp. | 2,662 | 238,674 | ||||||
| POSCO Holdings, Inc. | 1,776 | 684,352 | ||||||
| Samsung C&T Corp. | 2,234 | 224,370 | ||||||
| Samsung Electronics Co. Ltd. GDR | 3,930 | 5,889,026 | ||||||
| Samsung Fire & Marine Insurance Co. Ltd. | 1,259 | 256,765 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 77
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| Samsung SDI Co. Ltd. | 967 | $ | 351,998 | |||||
| SK Hynix, Inc. | 4,061 | 443,401 | ||||||
| Woori Financial Group, Inc. | 96,731 | 974,819 | ||||||
| 17,666,512 | ||||||||
| Taiwan | 16.4% | ||||||||
| Accton Technology Corp. | 56,000 | 948,886 | ||||||
| Advantech Co. Ltd. | 19,797 | 239,420 | ||||||
| Asia Vital Components Co. Ltd. | 27,000 | 293,749 | ||||||
| ASMedia Technology, Inc. | 5,000 | 294,207 | ||||||
| China Motor Corp. | 81,000 | 297,609 | ||||||
| Delta Electronics, Inc. | 214,000 | 2,179,509 | ||||||
| Elan Microelectronics Corp. | 52,000 | 274,390 | ||||||
| Eva Airways Corp. | 396,000 | 405,067 | ||||||
| Feng TAY Enterprise Co. Ltd. | 31,560 | 179,672 | ||||||
| Global Unichip Corp. | 4,000 | 225,641 | ||||||
| International Games System Co. Ltd. | 43,000 | 1,013,471 | ||||||
| ITE Technology, Inc. | 40,000 | 195,576 | ||||||
| King Yuan Electronics Co. Ltd. | 133,000 | 366,533 | ||||||
| Lite-On Technology Corp. | 67,000 | 254,203 | ||||||
| Lotes Co. Ltd. | 13,000 | 451,569 | ||||||
| MediaTek, Inc. | 69,000 | 2,272,561 | ||||||
| Micro-Star International Co. Ltd. | 72,000 | 477,167 | ||||||
| Novatek Microelectronics Corp. | 37,000 | 622,275 | ||||||
| Quanta Computer, Inc. | 41,000 | 298,360 | ||||||
| Realtek Semiconductor Corp. | 22,000 | 336,463 | ||||||
| Sunonwealth Electric Machine Industry Co. Ltd. | 106,000 | 369,943 | ||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 430,000 | 8,275,558 | ||||||
| Tong Yang Industry Co. Ltd. | 119,000 | 294,093 | ||||||
| Unimicron Technology Corp. | 41,000 | 233,693 | ||||||
| United Microelectronics Corp. | 226,000 | 384,260 | ||||||
| Voltronic Power Technology Corp. | 5,000 | 277,592 | ||||||
| Wowprime Corp. | 23,089 | 187,454 | ||||||
| 21,648,921 | ||||||||
The accompanying notes are an integral part of these financial statements.
78 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (continued) | ||||||||
| Thailand | 2.4% | ||||||||
| Bangkok Bank PCL | 89,500 | $ | 410,364 | |||||
| Bangkok Dusit Medical Services PCL NVDR | 301,400 | 245,041 | ||||||
| Bumrungrad Hospital PCL (‡) | 88,500 | 575,610 | ||||||
| Delta Electronics Thailand PCL (‡) | 87,300 | 225,076 | ||||||
| Krung Thai Bank PCL NVDR | 1,151,700 | 620,512 | ||||||
| PTT Exploration & Production PCL (‡) | 205,000 | 897,898 | ||||||
| TMBThanachart Bank PCL NVDR | 5,138,300 | 251,220 | ||||||
| 3,225,721 | ||||||||
| Turkey | 1.0% | ||||||||
| Akbank TAS | 204,145 | 253,275 | ||||||
| Turk Hava Yollari AO (*) | 23,634 | 183,282 | ||||||
| Turkcell Iletisim Hizmetleri AS | 105,650 | 201,186 | ||||||
| Turkiye Garanti Bankasi AS | 138,067 | 273,706 | ||||||
| Turkiye Is Bankasi AS, Class C | 561,403 | 445,619 | ||||||
| 1,357,068 | ||||||||
| United Arab Emirates | 1.1% | ||||||||
| Abu Dhabi Islamic Bank PJSC | 68,487 | 188,710 | ||||||
| Americana Restaurants International PLC | 228,898 | 195,148 | ||||||
| Emaar Properties PJSC | 247,830 | 534,190 | ||||||
| Emirates NBD Bank PJSC | 76,844 | 362,182 | ||||||
| National Marine Dredging Co. (*) | 28,613 | 232,192 | ||||||
| 1,512,422 | ||||||||
| Total Common Stocks (Cost $119,297,346) | 128,985,241 | |||||||
| Preferred Stocks | 1.4% | ||||||||
| Brazil | 1.4% | ||||||||
| Metalurgica Gerdau SA | 82,200 | 183,133 | ||||||
| Petroleo Brasileiro SA | 215,639 | 1,648,397 | ||||||
| Total Preferred Stocks (Cost $1,337,997) | 1,831,530 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 79
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Emerging Markets Equity Advantage Portfolio (concluded) | ||||||||
| Short-Term Investments | 1.5% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $1,979,591) | 1,979,591 | $ | 1,979,591 | |||||
| Total Investments | 100.4% (Cost $122,614,934) | $ | 132,796,362 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.4)% | (530,748 | ) | ||||||
| Net Assets | 100.0% | $ | 132,265,614 | ||||||
The accompanying notes are an integral part of these financial statements.
80 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 81
| Description | Shares | Fair Value | ||||||
| Lazard Emerging Markets Equity Portfolio (continued) | ||||||||
| Egypt | 0.7% | ||||||||
| Commercial International Bank - Egypt (CIB) GDR | 14,554,166 | $ | 18,629,376 | |||||
| Greece | 1.6% | ||||||||
| National Bank of Greece SA (*) | 3,720,967 | 25,821,261 | ||||||
| OPAP SA | 1,077,791 | 18,296,335 | ||||||
| 44,117,596 | ||||||||
| Hong Kong | 0.7% | ||||||||
| ASMPT Ltd. | 2,047,700 | 19,444,089 | ||||||
| Hungary | 3.4% | ||||||||
| MOL Hungarian Oil & Gas PLC | 3,249,933 | 26,473,299 | ||||||
| OTP Bank Nyrt | 1,404,088 | 63,948,935 | ||||||
| 90,422,234 | ||||||||
| India | 6.2% | ||||||||
| Axis Bank Ltd. | 1,928,529 | 25,509,172 | ||||||
| Bharat Petroleum Corp. Ltd. | 610,389 | 3,302,855 | ||||||
| Hindalco Industries Ltd. | 2,615,123 | 19,283,152 | ||||||
| Indus Towers Ltd. (*) | 15,575,919 | 37,227,703 | ||||||
| Infosys Ltd. ADR | 1,509,573 | 27,745,952 | ||||||
| Tata Consultancy Services Ltd. | 471,488 | 21,467,970 | ||||||
| UPL Ltd. | 4,705,061 | 33,175,159 | ||||||
| 167,711,963 | ||||||||
| Indonesia | 4.8% | ||||||||
| Astra International Tbk PT | 88,734,200 | 32,515,577 | ||||||
| Bank Mandiri Persero Tbk PT | 111,711,584 | 43,821,237 | ||||||
| Telkom Indonesia Persero Tbk. PT ADR | 1,299,303 | 33,470,045 | ||||||
| United Tractors Tbk PT | 13,584,100 | 19,946,397 | ||||||
| 129,753,256 | ||||||||
The accompanying notes are an integral part of these financial statements.
82 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Emerging Markets Equity Portfolio (continued) | ||||||||
| Mexico | 5.2% | ||||||||
| America Movil SAB de CV | 1,607,293 | $ | 29,767,066 | |||||
| Grupo Aeroportuario del Pacifico SAB de CV ADR | 38,639 | 6,770,326 | ||||||
| Grupo Financiero Banorte SAB de CV, Class O | 3,200,637 | 32,185,429 | ||||||
| Grupo Mexico SAB de CV, Series B | 3,857,885 | 21,396,597 | ||||||
| Kimberly-Clark de Mexico SAB de CV, Class A | 14,145,295 | 31,795,884 | ||||||
| Ternium SA ADR | 438,978 | 18,643,396 | ||||||
| 140,558,698 | ||||||||
| Portugal | 2.4% | ||||||||
| Galp Energia SGPS SA | 4,447,364 | 65,421,093 | ||||||
| Russia | 0.0% | ||||||||
| Mobile TeleSystems PJSC ADR (*), (¢) | 4,695,624 | 5 | ||||||
| Sberbank of Russia PJSC (¢) | 13,596,421 | 13 | ||||||
| 18 | ||||||||
| South Africa | 8.3% | ||||||||
| Anglo American PLC | 904,694 | 22,701,679 | ||||||
| Bidvest Group Ltd. | 2,062,106 | 28,495,865 | ||||||
| Life Healthcare Group Holdings Ltd. | 29,044,730 | 29,172,130 | ||||||
| Nedbank Group Ltd. | 3,492,670 | 41,241,640 | ||||||
| Sanlam Ltd. | 8,907,618 | 35,471,640 | ||||||
| Standard Bank Group Ltd. | 3,081,144 | 34,984,486 | ||||||
| Vodacom Group Ltd. | 5,289,491 | 30,668,737 | ||||||
| 222,736,177 | ||||||||
| South Korea | 11.2% | ||||||||
| Coway Co. Ltd. | 535,714 | 23,703,174 | ||||||
| Doosan Bobcat, Inc. | 158,107 | 6,162,341 | ||||||
| Hyundai Mobis Co. Ltd. | 151,138 | 27,665,390 | ||||||
| KB Financial Group, Inc. | 1,053,046 | 44,044,030 | ||||||
| Kia Corp. | 283,652 | 21,966,346 | ||||||
| KT Corp. | 1,250,394 | 33,340,564 | ||||||
| KT&G Corp. | 290,638 | 19,587,186 | ||||||
| Samsung Electronics Co. Ltd. | 723,176 | 43,983,503 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 83
| Description | Shares | Fair Value | ||||||
| Lazard Emerging Markets Equity Portfolio (concluded) | ||||||||
| Shinhan Financial Group Co. Ltd. | 1,344,174 | $ | 41,774,384 | |||||
| SK Hynix, Inc. | 348,684 | 38,071,124 | ||||||
| 300,298,042 | ||||||||
| Taiwan | 12.5% | ||||||||
| ASE Technology Holding Co. Ltd. | 15,716,000 | 68,923,239 | ||||||
| Globalwafers Co. Ltd. | 1,510,000 | 28,807,162 | ||||||
| Hon Hai Precision Industry Co. Ltd. | 6,429,425 | 21,868,482 | ||||||
| MediaTek, Inc. | 1,486,000 | 48,942,402 | ||||||
| Novatek Microelectronics Corp. | 1,940,000 | 32,627,398 | ||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 5,259,913 | 101,229,567 | ||||||
| Yageo Corp. | 1,767,000 | 34,240,316 | ||||||
| 336,638,566 | ||||||||
| Thailand | 1.9% | ||||||||
| Kasikornbank PCL | 6,383,054 | 25,451,773 | ||||||
| PTT Exploration & Production PCL (‡) | 5,774,500 | 25,292,251 | ||||||
| 50,744,024 | ||||||||
| United Kingdom | 1.3% | ||||||||
| Unilever PLC | 726,558 | 35,180,451 | ||||||
| Total Common Stocks (Cost $2,326,275,796) | 2,612,327,049 | |||||||
| Short-Term Investments | 3.7% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $101,061,146) | 101,061,146 | 101,061,146 | ||||||
| Total Investments | 100.6% (Cost $2,427,336,942) | $ | 2,713,388,195 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.6)% | (16,936,859 | ) | ||||||
| Net Assets | 100.0% | $ | 2,696,451,336 | ||||||
The accompanying notes are an integral part of these financial statements.
84 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 85
| Description | Shares | Fair Value | ||||||
| Lazard Equity Franchise Portfolio (concluded) | ||||||||
| Henry Schein, Inc. (*) | 72,122 | $ | 5,460,356 | |||||
| International Game Technology PLC | 199,766 | 5,475,586 | ||||||
| Kraft Heinz Co. | 64,691 | 2,392,273 | ||||||
| Medtronic PLC | 14,831 | 1,221,778 | ||||||
| Norfolk Southern Corp. | 10,039 | 2,373,019 | ||||||
| Omnicom Group, Inc. | 83,418 | 7,216,491 | ||||||
| Scotts Miracle-Gro Co. | 28,281 | 1,802,914 | ||||||
| Visa, Inc., A Shares | 13,600 | 3,540,760 | ||||||
| 72,773,872 | ||||||||
| Total Common Stocks (Cost $101,124,097) | 113,072,750 | |||||||
| Preferred Stocks | 3.1% | ||||||||
| Germany | 3.1% | ||||||||
| Henkel AG & Co. KGaA (Cost $3,231,266) | 45,579 | 3,666,004 | ||||||
| Short-Term Investments | 1.5% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $1,760,371) | 1,760,371 | 1,760,371 | ||||||
| Total Investments | 99.7% (Cost $106,115,734) | $ | 118,499,125 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.3% | 353,139 | |||||||
| Net Assets | 100.0% | $ | 118,852,264 | ||||||
The accompanying notes are an integral part of these financial statements.
86 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 87
| Description | Shares | Fair Value | ||||||
| Lazard Global Equity Select Portfolio (continued) | ||||||||
| India | 1.3% | ||||||||
| HDFC Bank Ltd. ADR | 19,397 | $ | 1,301,733 | |||||
| Japan | 3.1% | ||||||||
| BayCurrent Consulting, Inc. | 17,700 | 618,746 | ||||||
| Kadokawa Corp. | 36,200 | 737,753 | ||||||
| Nintendo Co. Ltd. | 21,800 | 1,139,184 | ||||||
| Shimano, Inc. | 3,800 | 586,601 | ||||||
| 3,082,284 | ||||||||
| Netherlands | 3.7% | ||||||||
| ASM International NV | 2,098 | 1,092,516 | ||||||
| Wolters Kluwer NV | 17,995 | 2,557,169 | ||||||
| 3,649,685 | ||||||||
| Spain | 1.2% | ||||||||
| Industria de Diseno Textil SA | 25,941 | 1,131,454 | ||||||
| Sweden | 2.0% | ||||||||
| Assa Abloy AB, Class B | 24,226 | 697,937 | ||||||
| Hexagon AB, B Shares | 102,732 | 1,237,725 | ||||||
| 1,935,662 | ||||||||
| Switzerland | 4.5% | ||||||||
| ABB Ltd. | 39,853 | 1,771,031 | ||||||
| Partners Group Holding AG | 968 | 1,399,510 | ||||||
| Swatch Group AG | 4,395 | 1,198,339 | ||||||
| 4,368,880 | ||||||||
| Taiwan | 1.9% | ||||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 17,572 | 1,827,488 | ||||||
| United Kingdom | 6.4% | ||||||||
| Coca-Cola Europacific Partners PLC | 19,121 | 1,276,136 | ||||||
| Diageo PLC | 30,474 | 1,106,639 | ||||||
The accompanying notes are an integral part of these financial statements.
88 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Equity Select Portfolio (continued) | ||||||||
| RELX PLC | 58,019 | $ | 2,295,618 | |||||
| Unilever PLC | 33,269 | 1,609,684 | ||||||
| 6,288,077 | ||||||||
| United States | 58.8% | ||||||||
| Accenture PLC, Class A | 7,561 | 2,653,230 | ||||||
| Alphabet, Inc., Class A (*) | 28,504 | 3,981,724 | ||||||
| Amazon.com, Inc. (*) | 22,154 | 3,366,079 | ||||||
| Amphenol Corp., Class A | 13,574 | 1,345,591 | ||||||
| Aon PLC, Class A | 6,226 | 1,811,891 | ||||||
| Avery Dennison Corp. | 4,164 | 841,794 | ||||||
| Bank of America Corp. | 31,987 | 1,077,002 | ||||||
| Booz Allen Hamilton Holding Corp. | 16,618 | 2,125,608 | ||||||
| BRP, Inc. | 9,921 | 709,942 | ||||||
| Charles Schwab Corp. | 20,415 | 1,404,552 | ||||||
| Coca-Cola Co. | 26,880 | 1,584,038 | ||||||
| Danaher Corp. | 7,715 | 1,784,788 | ||||||
| Deere & Co. | 2,599 | 1,039,262 | ||||||
| Estee Lauder Cos., Inc., Class A | 6,096 | 891,540 | ||||||
| Intercontinental Exchange, Inc. | 15,365 | 1,973,327 | ||||||
| IQVIA Holdings, Inc. (*) | 8,768 | 2,028,740 | ||||||
| Johnson & Johnson | 11,647 | 1,825,551 | ||||||
| McDonald’s Corp. | 4,616 | 1,368,690 | ||||||
| Microsoft Corp. | 12,282 | 4,618,523 | ||||||
| Motorola Solutions, Inc. | 6,233 | 1,951,490 | ||||||
| NIKE, Inc., Class B | 9,393 | 1,019,798 | ||||||
| Procter & Gamble Co. | 10,016 | 1,467,745 | ||||||
| PTC, Inc. (*) | 8,617 | 1,507,630 | ||||||
| Rockwell Automation, Inc. | 4,089 | 1,269,553 | ||||||
| S&P Global, Inc. | 4,058 | 1,787,630 | ||||||
| Sysco Corp. | 9,694 | 708,922 | ||||||
| Texas Instruments, Inc. | 8,654 | 1,475,161 | ||||||
| Thermo Fisher Scientific, Inc. | 3,930 | 2,086,005 | ||||||
| TopBuild Corp. (*) | 3,035 | 1,135,879 | ||||||
| UnitedHealth Group, Inc. | 2,589 | 1,363,031 | ||||||
| Visa, Inc., A Shares | 8,153 | 2,122,634 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 89
| Description | Shares | Fair Value | ||||||
| Lazard Global Equity Select Portfolio (concluded) | ||||||||
| Warner Music Group Corp., Class A | 15,982 | $ | 571,996 | |||||
| Wells Fargo & Co. | 25,160 | 1,238,375 | ||||||
| Zoetis, Inc. | 7,360 | 1,452,643 | ||||||
| 57,590,364 | ||||||||
| Total Common Stocks (Cost $63,810,269) | 96,416,223 | |||||||
| Short-Term Investments | 1.4% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $1,417,398) | 1,417,398 | 1,417,398 | ||||||
| Total Investments | 99.9% (Cost $65,227,667) | $ | 97,833,621 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.1% | 64,499 | |||||||
| Net Assets | 100.0% | $ | 97,898,120 | ||||||
The accompanying notes are an integral part of these financial statements.
90 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 91
| Description | Shares | Fair Value | ||||||
| Lazard Global Listed Infrastructure Portfolio (continued) | ||||||||
| Switzerland | 2.0% | ||||||||
| Flughafen Zurich AG | 831,615 | $ | 173,733,408 | |||||
| United Kingdom | 19.2% | ||||||||
| National Grid PLC | 53,192,829 | 718,227,236 | ||||||
| Pennon Group PLC (^) | 14,334,169 | 138,457,838 | ||||||
| Severn Trent PLC | 12,315,081 | 405,030,365 | ||||||
| United Utilities Group PLC | 29,804,383 | 401,690,259 | ||||||
| 1,663,405,698 | ||||||||
| United States | 36.4% | ||||||||
| American Electric Power Co., Inc. | 4,706,686 | 382,277,037 | ||||||
| CSX Corp. | 11,807,836 | 409,377,674 | ||||||
| Exelon Corp. | 9,375,015 | 336,563,038 | ||||||
| Ferrovial SE | 20,077,335 | 732,926,723 | ||||||
| Norfolk Southern Corp. | 3,032,819 | 716,897,755 | ||||||
| Pinnacle West Capital Corp. | 2,291,619 | 164,629,909 | ||||||
| PPL Corp. | 8,266,300 | 224,016,730 | ||||||
| Union Pacific Corp. | 795,200 | 195,317,024 | ||||||
| 3,162,005,890 | ||||||||
| Total Common Stocks (Cost $7,605,263,479) | 8,389,192,187 | |||||||
| Short-Term Investments | 3.2% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $279,726,263) | 279,726,263 | 279,726,263 | ||||||
| Total Investments | 99.9% (Cost $7,884,989,742) (») | $ | 8,668,918,450 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.1% | 6,038,576 | |||||||
| Net Assets | 100.0% | $ | 8,674,957,026 | ||||||
The accompanying notes are an integral part of these financial statements.
92 Annual Report
Lazard Global Listed Infrastructure Portfolio (concluded)
Forward Currency Contracts open at December 31, 2023:
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||
| USD | 63,107,600 | AUD | 93,788,696 | BNP | 03/26/24 | $ | — | $ | 962,924 | ||||||||||
| USD | 113,189,918 | AUD | 168,234,120 | CIT | 03/26/24 | — | 1,737,027 | ||||||||||||
| USD | 125,695,894 | AUD | 186,950,091 | HSB | 03/26/24 | — | 2,016,622 | ||||||||||||
| USD | 101,366,279 | AUD | 150,725,237 | MSC | 03/26/24 | — | 1,599,701 | ||||||||||||
| USD | 122,732,252 | AUD | 182,563,928 | SSB | 03/26/24 | — | 1,983,914 | ||||||||||||
| USD | 5,949,312 | CAD | 7,936,858 | BNP | 03/26/24 | — | 47,336 | ||||||||||||
| USD | 64,027,232 | CAD | 85,457,915 | CIT | 03/26/24 | — | 540,010 | ||||||||||||
| USD | 41,727,796 | CAD | 55,242,411 | HSB | 03/26/24 | — | 10,294 | ||||||||||||
| USD | 110,321,449 | CAD | 147,229,490 | HSB | 03/26/24 | — | 916,955 | ||||||||||||
| USD | 38,772,683 | CAD | 51,721,014 | MSC | 03/26/24 | — | 304,835 | ||||||||||||
| USD | 53,386,053 | CAD | 71,231,943 | SCB | 03/26/24 | — | 432,836 | ||||||||||||
| USD | 39,077,932 | CHF | 33,628,905 | BNP | 03/26/24 | — | 1,245,802 | ||||||||||||
| USD | 63,569,546 | CHF | 54,650,103 | SCB | 03/26/24 | — | 1,960,277 | ||||||||||||
| USD | 73,778,908 | CHF | 63,488,005 | SSB | 03/26/24 | — | 2,348,262 | ||||||||||||
| USD | 342,896,866 | EUR | 311,045,214 | BNP | 03/26/24 | — | 1,623,350 | ||||||||||||
| USD | 443,708,048 | EUR | 402,598,695 | CAN | 03/26/24 | — | 2,218,728 | ||||||||||||
| USD | 251,840,172 | EUR | 228,498,294 | CIT | 03/26/24 | — | 1,249,341 | ||||||||||||
| USD | 385,159,596 | EUR | 349,403,399 | HSB | 03/26/24 | — | 1,846,952 | ||||||||||||
| USD | 377,931,886 | EUR | 343,204,717 | MEL | 03/26/24 | — | 2,208,871 | ||||||||||||
| USD | 538,402,300 | EUR | 487,948,432 | RBC | 03/26/24 | — | 2,059,639 | ||||||||||||
| USD | 418,100,784 | EUR | 379,251,752 | SSB | 03/26/24 | — | 1,966,427 | ||||||||||||
| USD | 180,693,328 | GBP | 141,628,060 | CAN | 03/26/24 | 94,749 | — | ||||||||||||
| USD | 586,806,065 | GBP | 459,866,747 | HSB | 03/26/24 | 401,922 | — | ||||||||||||
| USD | 225,530,074 | GBP | 176,771,258 | MSC | 03/26/24 | 118,259 | — | ||||||||||||
| USD | 367,088,197 | GBP | 287,543,579 | RBC | 03/26/24 | 423,838 | — | ||||||||||||
| USD | 283,512,493 | GBP | 222,226,789 | SSB | 03/26/24 | 137,558 | — | ||||||||||||
| USD | 89,742,208 | HKD | 699,287,435 | BNP | 03/26/24 | 19,252 | — | ||||||||||||
| USD | 41,389,963 | HKD | 322,496,144 | HSB | 03/26/24 | 11,689 | — | ||||||||||||
| USD | 101,736,415 | HKD | 792,781,015 | MSC | 03/26/24 | 17,648 | — | ||||||||||||
| USD | 9,695,054 | HKD | 75,539,980 | SCB | 03/26/24 | 2,801 | — | ||||||||||||
| USD | 42,433,887 | HKD | 330,835,241 | SSB | 03/26/24 | — | 14,346 | ||||||||||||
| USD | 92,308,956 | HKD | 719,388,246 | SSB | 03/26/24 | 6,940 | — | ||||||||||||
| Total gross unrealized appreciation/depreciation on Forward Currency Contracts | $ | 1,234,656 | $ | 29,294,449 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 93
The accompanying notes are an integral part of these financial statements.
94 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Strategic Equity Portfolio (continued) | ||||||||
| Hong Kong | 1.5% | ||||||||
| AIA Group Ltd. | 18,400 | $ | 159,811 | |||||
| India | 1.3% | ||||||||
| HDFC Bank Ltd. ADR | 2,190 | 146,971 | ||||||
| Ireland | 1.0% | ||||||||
| Ryanair Holdings PLC ADR (*) | 832 | 110,956 | ||||||
| Israel | 3.4% | ||||||||
| Bank Leumi Le-Israel BM | 7,043 | 56,610 | ||||||
| Tel Aviv Stock Exchange Ltd. | 36,123 | 192,174 | ||||||
| Wix.com Ltd. (*) | 1,014 | 124,742 | ||||||
| 373,526 | ||||||||
| Italy | 1.5% | ||||||||
| BFF Bank SpA | 14,332 | 163,299 | ||||||
| Japan | 8.6% | ||||||||
| Advantest Corp. | 4,400 | 151,512 | ||||||
| BayCurrent Consulting, Inc. | 5,500 | 192,266 | ||||||
| Hoya Corp. | 900 | 111,932 | ||||||
| Kadokawa Corp. | 3,100 | 63,178 | ||||||
| Koito Manufacturing Co. Ltd. | 4,900 | 76,127 | ||||||
| Nippon Sanso Holdings Corp. | 6,100 | 162,669 | ||||||
| Renesas Electronics Corp. (*) | 9,600 | 172,291 | ||||||
| 929,975 | ||||||||
| Mexico | 2.0% | ||||||||
| Arca Continental SAB de CV | 19,500 | 212,914 | ||||||
| Netherlands | 2.7% | ||||||||
| ASML Holding NV | 253 | 191,018 | ||||||
| Universal Music Group NV | 3,527 | 100,718 | ||||||
| 291,736 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 95
| Description | Shares | Fair Value | ||||||
| Lazard Global Strategic Equity Portfolio (continued) | ||||||||
| Portugal | 1.2% | ||||||||
| EDP - Energias de Portugal SA | 25,713 | $ | 129,909 | |||||
| Switzerland | 1.1% | ||||||||
| ABB Ltd. | 2,665 | 118,430 | ||||||
| Taiwan | 2.8% | ||||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 16,000 | 307,928 | ||||||
| United Kingdom | 3.9% | ||||||||
| JD Sports Fashion PLC | 83,824 | 177,158 | ||||||
| RELX PLC | 6,320 | 250,061 | ||||||
| 427,219 | ||||||||
| United States | 49.6% | ||||||||
| Accenture PLC, Class A | 619 | 217,213 | ||||||
| Advanced Micro Devices, Inc. (*) | 1,456 | 214,629 | ||||||
| Alphabet, Inc., Class A (*) | 3,416 | 477,181 | ||||||
| Amphenol Corp., Class A | 2,209 | 218,978 | ||||||
| Analog Devices, Inc. | 566 | 112,385 | ||||||
| Applied Materials, Inc. | 1,205 | 195,294 | ||||||
| Aptiv PLC (*) | 1,026 | 92,053 | ||||||
| Boston Scientific Corp. (*) | 946 | 54,688 | ||||||
| Chubb Ltd. | 442 | 99,892 | ||||||
| Datadog, Inc. Class A (*) | 927 | 112,519 | ||||||
| Estee Lauder Cos., Inc., Class A | 741 | 108,371 | ||||||
| Intercontinental Exchange, Inc. | 1,757 | 225,652 | ||||||
| IQVIA Holdings, Inc. (*) | 1,213 | 280,664 | ||||||
| Marsh & McLennan Cos., Inc. | 1,547 | 293,110 | ||||||
| Microsoft Corp. | 1,502 | 564,812 | ||||||
| Onto Innovation, Inc. (*) | 972 | 148,619 | ||||||
| S&P Global, Inc. | 815 | 359,024 | ||||||
| Synopsys, Inc. (*) | 349 | 179,704 | ||||||
| Take-Two Interactive Software, Inc. (*) | 841 | 135,359 | ||||||
| Thermo Fisher Scientific, Inc. | 580 | 307,858 | ||||||
The accompanying notes are an integral part of these financial statements.
96 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Strategic Equity Portfolio (concluded) | ||||||||
| UnitedHealth Group, Inc. | 606 | $ | 319,041 | |||||
| Verra Mobility Corp. (*) | 4,850 | 111,696 | ||||||
| Visa, Inc., A Shares | 721 | 187,712 | ||||||
| Watsco, Inc. | 320 | 137,110 | ||||||
| Zoetis, Inc. | 1,216 | 240,002 | ||||||
| 5,393,566 | ||||||||
| Total Common Stocks (Cost $9,721,240) | 10,807,178 | |||||||
| Short-Term Investments | 1.0% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $108,866) | 108,866 | 108,866 | ||||||
| Total Investments | 100.4% (Cost $9,830,106) | $ | 10,916,044 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.4)% | (42,020 | ) | ||||||
| Net Assets | 100.0% | $ | 10,874,024 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 97
The accompanying notes are an integral part of these financial statements.
98 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| Torex Gold Resources, Inc. (*) | 4,375 | $ | 48,272 | |||||
| TransAlta Corp. | 7,069 | 58,790 | ||||||
| Vermilion Energy, Inc. | 1,249 | 15,053 | ||||||
| 1,499,345 | ||||||||
| Chile | 0.1% | ||||||||
| Enel Chile SA ADR | 3,140 | 10,174 | ||||||
| China | 8.7% | ||||||||
| Alibaba Group Holding Ltd. | 18,300 | 176,856 | ||||||
| Alibaba Group Holding Ltd. ADR | 590 | 45,731 | ||||||
| Baidu, Inc. ADR (*) | 429 | 51,090 | ||||||
| Bank of China Ltd., Class H | 185,000 | 70,387 | ||||||
| Beijing Enterprises Holdings Ltd. | 5,000 | 17,382 | ||||||
| BYD Co. Ltd., Class H | 500 | 13,740 | ||||||
| BYD Electronic International Co. Ltd. | 4,000 | 18,712 | ||||||
| China Construction Bank Corp., Class H | 33,000 | 19,743 | ||||||
| China Longyuan Power Group Corp. Ltd., Class H | 114,000 | 86,344 | ||||||
| China Merchants Bank Co. Ltd., Class H | 3,500 | 12,186 | ||||||
| China Overseas Property Holdings Ltd. | 20,000 | 14,991 | ||||||
| China Yongda Automobiles Services Holdings Ltd. | 35,500 | 13,303 | ||||||
| CSPC Pharmaceutical Group Ltd. | 56,000 | 52,341 | ||||||
| Haidilao International Holding Ltd. | 24,000 | 44,528 | ||||||
| Hisense Home Appliances Group Co. Ltd., Class H | 7,000 | 15,074 | ||||||
| JD.com, Inc., Class A | 5,650 | 81,437 | ||||||
| Jinan Acetate Chemical Co. Ltd. | 1,000 | 25,925 | ||||||
| KE Holdings, Inc. ADR | 1,220 | 19,776 | ||||||
| Kuaishou Technology (*) | 2,500 | 16,888 | ||||||
| Kunlun Energy Co. Ltd. | 22,000 | 19,818 | ||||||
| Meitu, Inc. | 36,000 | 16,541 | ||||||
| Meituan, Class B (*) | 2,700 | 28,458 | ||||||
| NetEase, Inc. | 8,000 | 148,475 | ||||||
| New Oriental Education & Technology Group, Inc. ADR (*) | 274 | 20,079 | ||||||
| PDD Holdings, Inc. (*) | 498 | 72,862 | ||||||
| PetroChina Co. Ltd., Class H | 88,000 | 58,010 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 99
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| PICC Property & Casualty Co. Ltd., Class H | 16,000 | $ | 18,992 | |||||
| Sinopharm Group Co. Ltd., Class H | 5,200 | 13,592 | ||||||
| Sunny Optical Technology Group Co. Ltd. | 2,000 | 18,389 | ||||||
| Tencent Holdings Ltd. | 5,500 | 207,794 | ||||||
| Tencent Music Entertainment Group ADR (*) | 4,763 | 42,915 | ||||||
| Vipshop Holdings Ltd. ADR (*) | 2,824 | 50,154 | ||||||
| Xiaomi Corp., Class B (*) | 38,600 | 76,851 | ||||||
| Yangzijiang Shipbuilding Holdings Ltd. | 60,200 | 67,879 | ||||||
| ZTO Express Cayman, Inc. ADR | 1,284 | 27,323 | ||||||
| 1,684,566 | ||||||||
| Colombia | 0.1% | ||||||||
| Bancolombia SA ADR | 488 | 15,016 | ||||||
| Denmark | 4.1% | ||||||||
| AP Moller - Maersk AS, Class B | 62 | 111,443 | ||||||
| Novo Nordisk AS, Class B | 6,137 | 634,779 | ||||||
| Pandora AS | 419 | 57,886 | ||||||
| 804,108 | ||||||||
| France | 6.6% | ||||||||
| AXA SA | 3,685 | 120,289 | ||||||
| BNP Paribas SA | 2,880 | 199,546 | ||||||
| Capgemini SE | 416 | 87,024 | ||||||
| Cie de Saint-Gobain SA | 2,496 | 184,570 | ||||||
| La Francaise des Jeux SAEM | 2,567 | 93,183 | ||||||
| Rexel SA | 911 | 25,041 | ||||||
| Societe Generale SA | 2,521 | 67,212 | ||||||
| Teleperformance SE | 143 | 20,901 | ||||||
| TotalEnergies SE | 594 | 40,350 | ||||||
| Unibail-Rodamco-Westfield REIT (*) | 308 | 22,690 | ||||||
| Verallia SA | 1,695 | 65,514 | ||||||
| Vinci SA | 2,862 | 359,448 | ||||||
| 1,285,768 | ||||||||
The accompanying notes are an integral part of these financial statements.
100 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| Germany | 4.0% | ||||||||
| Beiersdorf AG | 66 | $ | 9,889 | |||||
| Deutsche Bank AG | 11,112 | 151,665 | ||||||
| Infineon Technologies AG | 9,801 | 408,786 | ||||||
| Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 101 | 41,824 | ||||||
| Rational AG | 17 | 13,134 | ||||||
| SAP SE | 318 | 48,916 | ||||||
| SMA Solar Technology AG (*) | 278 | 18,586 | ||||||
| Talanx AG | 744 | 53,097 | ||||||
| TUI AG (*) | 3,919 | 30,567 | ||||||
| 776,464 | ||||||||
| Greece | 0.6% | ||||||||
| Eurobank Ergasias Services & Holdings SA, Class A (*) | 24,663 | 43,778 | ||||||
| National Bank of Greece SA (*) | 5,784 | 40,137 | ||||||
| Piraeus Financial Holdings SA (*) | 7,252 | 25,563 | ||||||
| 109,478 | ||||||||
| Hong Kong | 1.8% | ||||||||
| Link REIT | 30,800 | 172,245 | ||||||
| Swire Pacific Ltd., Class A | 12,000 | 101,331 | ||||||
| United Energy Group Ltd. | 184,000 | 20,073 | ||||||
| WH Group Ltd. | 88,000 | 56,761 | ||||||
| 350,410 | ||||||||
| India | 4.0% | ||||||||
| Dr Reddy’s Laboratories Ltd. ADR | 4,684 | 325,913 | ||||||
| GAIL India Ltd. GDR | 2,319 | 26,669 | ||||||
| Larsen & Toubro Ltd. GDR | 622 | 26,497 | ||||||
| Mahindra & Mahindra Ltd. GDR | 1,064 | 22,450 | ||||||
| Reliance Industries Ltd. GDR | 296 | 18,500 | ||||||
| State Bank of India GDR | 4,687 | 361,836 | ||||||
| 781,865 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 101
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| Indonesia | 0.7% | ||||||||
| Bank Mandiri Persero Tbk. PT ADR | 6,948 | $ | 109,292 | |||||
| Bank Rakyat Indonesia Persero Tbk. PT ADR | 1,138 | 20,848 | ||||||
| First Resources Ltd. | 12,500 | 13,532 | ||||||
| 143,672 | ||||||||
| Ireland | 0.7% | ||||||||
| AerCap Holdings NV (*) | 1,112 | 82,644 | ||||||
| Ryanair Holdings PLC ADR (*) | 375 | 50,010 | ||||||
| 132,654 | ||||||||
| Israel | 0.3% | ||||||||
| Check Point Software Technologies Ltd. (*) | 141 | 21,543 | ||||||
| Nova Ltd. (*) | 204 | 28,028 | ||||||
| 49,571 | ||||||||
| Italy | 2.8% | ||||||||
| Banco BPM SpA | 7,389 | 39,015 | ||||||
| Buzzi SpA | 636 | 19,341 | ||||||
| Ferrari NV | 736 | 248,061 | ||||||
| Telecom Italia SpA (*) | 119,503 | 38,884 | ||||||
| UniCredit SpA | 6,999 | 189,867 | ||||||
| 535,168 | ||||||||
| Japan | 14.4% | ||||||||
| Anycolor, Inc. (*) | 900 | 19,754 | ||||||
| Bandai Namco Holdings, Inc. | 2,400 | 47,980 | ||||||
| Chugai Pharmaceutical Co. Ltd. | 3,100 | 117,540 | ||||||
| Daiwa Securities Group, Inc. | 3,800 | 25,468 | ||||||
| Denso Corp. | 3,900 | 58,496 | ||||||
| East Japan Railway Co. | 300 | 17,258 | ||||||
| Honda Motor Co. Ltd. | 15,900 | 164,358 | ||||||
| Hyakugo Bank Ltd. | 5,200 | 19,617 | ||||||
| Japan Post Bank Co. Ltd. | 1,200 | 12,216 | ||||||
| Japan Post Holdings Co. Ltd. | 34,200 | 305,217 | ||||||
The accompanying notes are an integral part of these financial statements.
102 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| Japan Tobacco, Inc. | 10,500 | $ | 271,034 | |||||
| JFE Holdings, Inc. | 2,600 | 40,194 | ||||||
| Komatsu Ltd. | 2,900 | 75,551 | ||||||
| Lawson, Inc. | 1,700 | 87,740 | ||||||
| Mitsubishi Motors Corp. | 6,400 | 20,283 | ||||||
| Mitsui & Co. Ltd. | 3,400 | 126,681 | ||||||
| Mizuho Financial Group, Inc. | 16,400 | 280,493 | ||||||
| MS&AD Insurance Group Holdings, Inc. | 1,500 | 58,867 | ||||||
| NGK Insulators Ltd. | 5,300 | 63,155 | ||||||
| NSK Ltd. | 3,200 | 17,273 | ||||||
| Ono Pharmaceutical Co. Ltd. | 5,900 | 105,382 | ||||||
| ORIX Corp. | 4,100 | 76,821 | ||||||
| Otsuka Holdings Co. Ltd. | 6,000 | 224,565 | ||||||
| Panasonic Holdings Corp. | 1,700 | 16,668 | ||||||
| Sega Sammy Holdings, Inc. | 1,200 | 16,734 | ||||||
| Shin-Etsu Chemical Co. Ltd. | 4,165 | 174,040 | ||||||
| SKY Perfect JSAT Holdings, Inc. | 7,700 | 38,166 | ||||||
| SoftBank Corp. | 5,300 | 66,053 | ||||||
| Subaru Corp. | 1,800 | 32,848 | ||||||
| Takara Holdings, Inc. | 2,100 | 18,404 | ||||||
| Tokyo Electron Ltd. ADR | 261 | 23,187 | ||||||
| Tokyo Kiraboshi Financial Group, Inc. | 800 | 22,478 | ||||||
| Toyota Motor Corp. | 6,000 | 110,141 | ||||||
| Yakult Honsha Co. Ltd. | 1,600 | 35,880 | ||||||
| 2,790,542 | ||||||||
| Luxembourg | 0.1% | ||||||||
| Reinet Investments SCA | 818 | 20,880 | ||||||
| Mexico | 0.9% | ||||||||
| Arca Continental SAB de CV | 2,000 | 21,837 | ||||||
| Cemex SAB de CV ADR (*) | 5,325 | 41,269 | ||||||
| Coca-Cola Femsa SAB de CV ADR | 646 | 61,137 | ||||||
| Fibra Uno Administracion SA de CV REIT | 11,000 | 19,757 | ||||||
| Kimberly-Clark de Mexico SAB de CV, Class A | 16,200 | 36,415 | ||||||
| 180,415 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 103
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| Netherlands | 3.5% | ||||||||
| ASML Holding NV | 514 | $ | 388,077 | |||||
| NN Group NV | 793 | 31,371 | ||||||
| Wolters Kluwer NV | 1,830 | 260,051 | ||||||
| 679,499 | ||||||||
| Philippines | 0.2% | ||||||||
| International Container Terminal Services, Inc. | 9,470 | 41,943 | ||||||
| Poland | 0.4% | ||||||||
| ORLEN SA | 4,745 | 78,974 | ||||||
| Portugal | 0.1% | ||||||||
| Jeronimo Martins SGPS SA | 770 | 19,578 | ||||||
| Saudi Arabia | 0.8% | ||||||||
| Arabian Internet & Communications Services Co. | 883 | 81,498 | ||||||
| Saudi Chemical Co. Holding | 16,275 | 18,571 | ||||||
| Saudi Telecom Co. | 4,367 | 47,091 | ||||||
| 147,160 | ||||||||
| Singapore | 1.7% | ||||||||
| Sembcorp Industries Ltd. | 12,700 | 50,983 | ||||||
| Singapore Airlines Ltd. | 3,400 | 16,850 | ||||||
| STMicroelectronics NV | 5,075 | 254,646 | ||||||
| 322,479 | ||||||||
| South Africa | 0.4% | ||||||||
| Gold Fields Ltd. ADR | 3,145 | 45,477 | ||||||
| Momentum Metropolitan Holdings | 15,564 | 18,574 | ||||||
| Sappi Ltd. | 8,562 | 20,640 | ||||||
| 84,691 | ||||||||
| South Korea | 4.0% | ||||||||
| DB Insurance Co. Ltd. | 624 | 40,473 | ||||||
| Doosan Bobcat, Inc. | 2,155 | 83,993 | ||||||
The accompanying notes are an integral part of these financial statements.
104 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| Hyundai Rotem Co. Ltd. (*) | 648 | $ | 13,324 | |||||
| KB Financial Group, Inc. | 924 | 38,647 | ||||||
| Kia Corp. | 2,845 | 220,320 | ||||||
| Meritz Financial Group, Inc. | 1,151 | 52,740 | ||||||
| POSCO Holdings, Inc. | 61 | 23,505 | ||||||
| Samsung Electronics Co. Ltd. | 5,027 | 305,742 | ||||||
| 778,744 | ||||||||
| Spain | 2.1% | ||||||||
| Banco Santander SA | 4,760 | 19,870 | ||||||
| Iberdrola SA | 16,263 | 212,689 | ||||||
| Industria de Diseno Textil SA | 4,191 | 182,797 | ||||||
| 415,356 | ||||||||
| Sweden | 1.9% | ||||||||
| Atlas Copco AB, A Shares | 4,139 | 71,272 | ||||||
| Betsson AB, Class B | 4,794 | 51,568 | ||||||
| Boliden AB | 1,474 | 45,986 | ||||||
| Fastighets AB Balder, B Shares (*) | 18,503 | 132,145 | ||||||
| SKF AB, B Shares | 1,775 | 35,461 | ||||||
| Volvo AB, B Shares | 1,280 | 33,275 | ||||||
| 369,707 | ||||||||
| Switzerland | 2.1% | ||||||||
| Belimo Holding AG | 69 | 38,062 | ||||||
| Logitech International SA | 1,391 | 132,006 | ||||||
| Novartis AG | 1,127 | 113,793 | ||||||
| UBS Group AG | 3,849 | 119,545 | ||||||
| 403,406 | ||||||||
| Taiwan | 4.6% | ||||||||
| Accton Technology Corp. | 4,000 | 67,778 | ||||||
| Asia Vital Components Co. Ltd. | 2,000 | 21,759 | ||||||
| Delta Electronics, Inc. | 21,000 | 213,877 | ||||||
| Grape King Bio Ltd. | 6,000 | 30,487 | ||||||
| International Games System Co. Ltd. | 3,000 | 70,707 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 105
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| MediaTek, Inc. | 4,000 | $ | 131,743 | |||||
| Micro-Star International Co. Ltd. | 7,000 | 46,391 | ||||||
| Novatek Microelectronics Corp. | 3,000 | 50,455 | ||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 14,000 | 269,437 | ||||||
| 902,634 | ||||||||
| Thailand | 0.5% | ||||||||
| Bumrungrad Hospital PCL (‡) | 10,500 | 68,293 | ||||||
| PTT Exploration & Production PCL (‡) | 4,400 | 19,272 | ||||||
| 87,565 | ||||||||
| Turkey | 0.2% | ||||||||
| Haci Omer Sabanci Holding AS ADR | 35,538 | 16,703 | ||||||
| Turkcell Iletisim Hizmetleri AS ADR | 6,484 | 31,188 | ||||||
| 47,891 | ||||||||
| United Kingdom | 8.3% | ||||||||
| 3i Group PLC | 3,512 | 108,107 | ||||||
| 4imprint Group PLC | 340 | 19,755 | ||||||
| Ashtead Group PLC | 720 | 49,889 | ||||||
| AstraZeneca PLC ADR | 598 | 40,275 | ||||||
| BAE Systems PLC | 3,298 | 46,660 | ||||||
| Barclays PLC | 28,711 | 55,923 | ||||||
| BP PLC | 4,076 | 24,087 | ||||||
| British American Tobacco PLC | 5,074 | 148,071 | ||||||
| Britvic PLC | 1,136 | 12,178 | ||||||
| Centrica PLC | 33,711 | 60,316 | ||||||
| Compass Group PLC | 2,288 | 62,519 | ||||||
| Global Ship Lease, Inc., Class A | 996 | 19,741 | ||||||
| HSBC Holdings PLC | 8,955 | 72,330 | ||||||
| IG Group Holdings PLC | 2,320 | 22,601 | ||||||
| International Consolidated Airlines Group SA (*) | 49,439 | 97,453 | ||||||
| Investec PLC | 4,192 | 28,299 | ||||||
| J Sainsbury PLC | 5,389 | 20,742 | ||||||
| Johnson Service Group PLC | 23,955 | 43,217 | ||||||
| Man Group PLC | 4,559 | 13,482 | ||||||
The accompanying notes are an integral part of these financial statements.
106 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (continued) | ||||||||
| Marks & Spencer Group PLC | 18,638 | $ | 64,615 | |||||
| NatWest Group PLC | 16,487 | 46,015 | ||||||
| RELX PLC | 1,271 | 50,408 | ||||||
| Rolls-Royce Holdings PLC (*) | 23,795 | 90,621 | ||||||
| Standard Chartered PLC | 19,065 | 161,270 | ||||||
| Tesco PLC | 9,350 | 34,586 | ||||||
| Unilever PLC | 3,108 | 150,492 | ||||||
| Virgin Money UK PLC | 16,878 | 35,246 | ||||||
| Vodafone Group PLC | 33,630 | 29,213 | ||||||
| 1,608,111 | ||||||||
| United States | 3.3% | ||||||||
| GSK PLC | 10,961 | 202,464 | ||||||
| Roche Holding AG | 1,101 | 319,105 | ||||||
| Stellantis NV | 5,131 | 120,284 | ||||||
| 641,853 | ||||||||
| Total Common Stocks (Cost $18,224,284) | 18,811,759 | |||||||
| Preferred Stocks | 3.0% | ||||||||
| Brazil | 1.3% | ||||||||
| Petroleo Brasileiro SA | 31,500 | 240,794 | ||||||
| Germany | 1.7% | ||||||||
| Bayerische Motoren Werke AG | 3,355 | 333,196 | ||||||
| Total Preferred Stocks (Cost $561,083) | 573,990 | |||||||
| Warrants | 0.0% | ||||||||
| Canada | 0.0% | ||||||||
| Constellation Software, Inc. Expires 03/31/40 (*), (¢) | 26 | 0 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 107
| Description | Shares | Fair Value | ||||||
| Lazard International Equity Advantage Portfolio (concluded) | ||||||||
| Short-Term Investments | 0.0% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $8,620) | 8,620 | $ | 8,620 | |||||
| Total Investments | 99.9% (Cost $18,793,987) | $ | 19,394,369 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.1% | 26,367 | |||||||
| Net Assets | 100.0% | $ | 19,420,736 | ||||||
The accompanying notes are an integral part of these financial statements.
108 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 109
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard International Equity Portfolio (continued) | ||||||||
| Germany | 10.7% | ||||||||
| Continental AG | 230,304 | $ | 19,587,436 | |||||
| Covestro AG (*) | 210,453 | 12,240,875 | ||||||
| Merck KGaA | 120,123 | 19,106,493 | ||||||
| MTU Aero Engines AG | 50,976 | 10,986,983 | ||||||
| Rheinmetall AG | 47,794 | 15,150,806 | ||||||
| SAP SE | 116,145 | 17,866,057 | ||||||
| Siemens Healthineers AG | 287,489 | 16,706,184 | ||||||
| Vonovia SE | 362,715 | 11,429,555 | ||||||
| 123,074,389 | ||||||||
| Greece | 0.9% | ||||||||
| National Bank of Greece SA (*) | 1,441,929 | 10,006,115 | ||||||
| Hong Kong | 1.0% | ||||||||
| AIA Group Ltd. | 1,373,800 | 11,932,011 | ||||||
| Ireland | 2.0% | ||||||||
| Ryanair Holdings PLC ADR (*) | 168,270 | 22,440,487 | ||||||
| Israel | 0.3% | ||||||||
| Wix.com Ltd. (*) | 27,963 | 3,440,008 | ||||||
| Italy | 0.8% | ||||||||
| UniCredit SpA | 354,969 | 9,629,503 | ||||||
| Japan | 17.2% | ||||||||
| Asics Corp. | 344,300 | 10,740,157 | ||||||
| Bandai Namco Holdings, Inc. | 459,300 | 9,182,167 | ||||||
| BayCurrent Consulting, Inc. | 312,400 | 10,920,690 | ||||||
| Daikin Industries Ltd. | 94,500 | 15,350,554 | ||||||
| Disco Corp. | 52,900 | 13,017,479 | ||||||
| FANUC Corp. | 404,100 | 11,887,669 | ||||||
| Hitachi Ltd. | 188,900 | 13,652,069 | ||||||
| Kokusai Electric Corp. | 435,900 | 9,444,279 | ||||||
| MatsukiyoCocokara & Co. | 1,184,900 | 20,942,841 | ||||||
The accompanying notes are an integral part of these financial statements.
110 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard International Equity Portfolio (continued) | ||||||||
| Nippon Sanso Holdings Corp. | 374,000 | $ | 9,973,486 | |||||
| Nitori Holdings Co. Ltd. | 87,100 | 11,636,207 | ||||||
| Recruit Holdings Co. Ltd. | 266,900 | 11,394,843 | ||||||
| Renesas Electronics Corp. (*) | 787,503 | 14,133,318 | ||||||
| Shimadzu Corp. | 314,700 | 8,769,333 | ||||||
| Suzuki Motor Corp. | 377,300 | 16,240,776 | ||||||
| ZOZO, Inc. | 421,100 | 9,461,773 | ||||||
| 196,747,641 | ||||||||
| Mexico | 1.2% | ||||||||
| Arca Continental SAB de CV | 1,219,612 | 13,316,546 | ||||||
| Netherlands | 4.0% | ||||||||
| Akzo Nobel NV | 176,221 | 14,560,372 | ||||||
| ING Groep NV | 1,170,421 | 17,521,431 | ||||||
| Universal Music Group NV | 467,051 | 13,337,178 | ||||||
| 45,418,981 | ||||||||
| Singapore | 1.1% | ||||||||
| DBS Group Holdings Ltd. | 491,220 | 12,410,548 | ||||||
| South Korea | 1.4% | ||||||||
| Samsung Electronics Co. Ltd. | 261,266 | 15,890,176 | ||||||
| Spain | 1.4% | ||||||||
| Industria de Diseno Textil SA | 357,160 | 15,578,041 | ||||||
| Sweden | 1.7% | ||||||||
| Sandvik AB | 890,114 | 19,265,429 | ||||||
| Switzerland | 2.4% | ||||||||
| ABB Ltd. | 401,346 | 17,835,450 | ||||||
| DSM-Firmenich AG | 100,761 | 10,259,123 | ||||||
| 28,094,573 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 111
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard International Equity Portfolio (continued) | ||||||||
| Taiwan | 1.5% | ||||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 163,211 | $ | 16,973,944 | |||||
| United Kingdom | 16.0% | ||||||||
| 3i Group PLC | 836,287 | 25,742,826 | ||||||
| AstraZeneca PLC | 93,557 | 12,600,574 | ||||||
| BP PLC | 3,448,506 | 20,379,007 | ||||||
| Coca-Cola Europacific Partners PLC | 251,834 | 16,752,484 | ||||||
| Compass Group PLC | 640,955 | 17,514,041 | ||||||
| London Stock Exchange Group PLC | 100,164 | 11,840,764 | ||||||
| Reckitt Benckiser Group PLC | 135,228 | 9,329,343 | ||||||
| RELX PLC | 950,082 | 37,680,528 | ||||||
| Unilever PLC | 479,355 | 23,193,069 | ||||||
| WPP PLC | 851,853 | 8,097,732 | ||||||
| 183,130,368 | ||||||||
| United States | 7.3% | ||||||||
| Aon PLC, Class A | 65,443 | 19,045,222 | ||||||
| Experian PLC | 304,431 | 12,406,102 | ||||||
| ICON PLC (*) | 79,579 | 22,526,428 | ||||||
| Roche Holding AG | 100,563 | 29,146,389 | ||||||
| 83,124,141 | ||||||||
| Total Common Stocks (Cost $903,312,008) | 1,072,040,151 | |||||||
| Preferred Stocks | 2.5% | ||||||||
| Brazil | 1.2% | ||||||||
| Itau Unibanco Holding SA | 2,046,000 | 14,226,918 | ||||||
| Germany | 1.3% | ||||||||
| Henkel AG & Co. KGaA | 178,150 | 14,328,939 | ||||||
| Total Preferred Stocks (Cost $24,351,294) | 28,555,857 | |||||||
The accompanying notes are an integral part of these financial statements.
112 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard International Equity Portfolio (concluded) | ||||||||
| Short-Term Investments | 0.8% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $9,310,442) | 9,310,442 | $ | 9,310,442 | |||||
| Total Investments | 97.0% (Cost $936,973,744) | $ | 1,109,906,450 | ||||||
| Cash and Other Assets in Excess of Liabilities | 3.0% | 34,899,830 | |||||||
| Net Assets | 100.0% | $ | 1,144,806,280 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 113
The accompanying notes are an integral part of these financial statements.
114 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard International Equity Select Portfolio (continued) | ||||||||
| Germany | 6.8% | ||||||||
| Continental AG | 9,336 | $ | 794,030 | |||||
| Covestro AG (*) | 10,247 | 596,011 | ||||||
| Merck KGaA | 3,785 | 602,034 | ||||||
| MTU Aero Engines AG | 1,488 | 320,712 | ||||||
| SAP SE | 4,676 | 719,288 | ||||||
| Siemens Healthineers AG | 10,013 | 581,862 | ||||||
| 3,613,937 | ||||||||
| Hong Kong | 2.0% | ||||||||
| AIA Group Ltd. | 120,000 | 1,042,249 | ||||||
| India | 2.1% | ||||||||
| ICICI Bank Ltd. ADR | 47,249 | 1,126,416 | ||||||
| Indonesia | 2.6% | ||||||||
| Bank Mandiri Persero Tbk PT | 2,132,700 | 836,597 | ||||||
| Telkom Indonesia Persero Tbk. PT ADR | 21,972 | 565,999 | ||||||
| 1,402,596 | ||||||||
| Ireland | 2.7% | ||||||||
| Ryanair Holdings PLC ADR (*) | 10,884 | 1,451,490 | ||||||
| Japan | 13.0% | ||||||||
| Advantest Corp. | 15,900 | 547,508 | ||||||
| Bandai Namco Holdings, Inc. | 18,000 | 359,850 | ||||||
| Daikin Industries Ltd. | 4,200 | 682,247 | ||||||
| Disco Corp. | 2,700 | 664,408 | ||||||
| FANUC Corp. | 22,600 | 664,839 | ||||||
| Hoya Corp. | 6,100 | 758,651 | ||||||
| Nomura Research Institute Ltd. | 31,700 | 918,527 | ||||||
| Recruit Holdings Co. Ltd. | 13,000 | 555,013 | ||||||
| Renesas Electronics Corp. (*) | 39,800 | 714,291 | ||||||
| Shin-Etsu Chemical Co. Ltd. | 14,900 | 622,615 | ||||||
| Suzuki Motor Corp. | 10,300 | 443,361 | ||||||
| Tokyo Electron Ltd. | 200 | 35,550 | ||||||
| 6,966,860 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 115
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard International Equity Select Portfolio (continued) | ||||||||
| Mexico | 2.0% | ||||||||
| Grupo Financiero Banorte SAB de CV, Class O | 108,500 | $ | 1,091,070 | |||||
| Netherlands | 6.6% | ||||||||
| Akzo Nobel NV | 8,381 | 692,486 | ||||||
| ASM International NV | 1,724 | 897,759 | ||||||
| IMCD NV | 3,287 | 573,527 | ||||||
| ING Groep NV | 50,482 | 755,725 | ||||||
| Universal Music Group NV | 21,164 | 604,362 | ||||||
| 3,523,859 | ||||||||
| Singapore | 1.0% | ||||||||
| DBS Group Holdings Ltd. | 21,600 | 545,718 | ||||||
| Switzerland | 3.8% | ||||||||
| ABB Ltd. | 16,796 | 746,399 | ||||||
| Cie Financiere Richemont SA, Class A | 5,082 | 700,977 | ||||||
| DSM-Firmenich AG | 5,462 | 556,121 | ||||||
| 2,003,497 | ||||||||
| Taiwan | 3.4% | ||||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 95,000 | 1,828,321 | ||||||
| United Kingdom | 13.3% | ||||||||
| BP PLC | 287,923 | 1,701,486 | ||||||
| Coca-Cola Europacific Partners PLC | 9,120 | 606,680 | ||||||
| Compass Group PLC | 46,454 | 1,269,352 | ||||||
| HSBC Holdings PLC | 77,044 | 622,291 | ||||||
| London Stock Exchange Group PLC | 3,999 | 472,737 | ||||||
| RELX PLC | 37,144 | 1,473,142 | ||||||
| Unilever PLC | 19,937 | 964,630 | ||||||
| 7,110,318 | ||||||||
| United States | 7.3% | ||||||||
| Aon PLC, Class A | 2,839 | 826,206 | ||||||
| Chubb Ltd. | 2,892 | 653,592 | ||||||
The accompanying notes are an integral part of these financial statements.
116 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard International Equity Select Portfolio (concluded) | ||||||||
| Experian PLC | 11,310 | $ | 460,902 | |||||
| ICON PLC (*) | 2,952 | 835,623 | ||||||
| Roche Holding AG | 3,903 | 1,131,215 | ||||||
| 3,907,538 | ||||||||
| Total Common Stocks (Cost $43,940,935) | 50,341,804 | |||||||
| Preferred Stocks | 2.3% | ||||||||
| Brazil | 1.4% | ||||||||
| Itau Unibanco Holding SA | 106,500 | 740,551 | ||||||
| Germany | 0.9% | ||||||||
| Henkel AG & Co. KGaA | 6,159 | 495,380 | ||||||
| Total Preferred Stocks (Cost $960,961) | 1,235,931 | |||||||
| Short-Term Investments | 1.7% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $886,429) | 886,429 | 886,429 | ||||||
| Total Investments | 98.2% (Cost $45,788,325) | $ | 52,464,164 | ||||||
| Cash and Other Assets in Excess of Liabilities | 1.8% | 979,787 | |||||||
| Net Assets | 100.0% | $ | 53,443,951 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 117
The accompanying notes are an integral part of these financial statements.
118 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard International Quality Growth Portfolio (continued) | ||||||||
| Israel | 2.4% | ||||||||
| Check Point Software Technologies Ltd. (*) | 41,128 | $ | 6,283,947 | |||||
| Japan | 10.7% | ||||||||
| Advantest Corp. | 180,000 | 6,198,210 | ||||||
| Hoya Corp. | 42,600 | 5,298,125 | ||||||
| Keyence Corp. | 12,000 | 5,260,121 | ||||||
| Pigeon Corp. | 81,500 | 937,870 | ||||||
| Shimano, Inc. | 14,800 | 2,284,656 | ||||||
| SMS Co. Ltd. | 152,500 | 3,121,251 | ||||||
| Toei Animation Co. Ltd. | 34,100 | 4,568,597 | ||||||
| 27,668,830 | ||||||||
| Netherlands | 8.8% | ||||||||
| ASML Holding NV | 13,444 | 10,150,397 | ||||||
| Universal Music Group NV | 193,186 | 5,516,649 | ||||||
| Wolters Kluwer NV | 48,782 | 6,932,136 | ||||||
| 22,599,182 | ||||||||
| Norway | 1.9% | ||||||||
| AutoStore Holdings Ltd. (*) | 929,829 | 1,826,881 | ||||||
| Gjensidige Forsikring ASA | 171,681 | 3,166,579 | ||||||
| 4,993,460 | ||||||||
| South Africa | 2.7% | ||||||||
| Clicks Group Ltd. | 393,492 | 7,009,733 | ||||||
| Spain | 2.6% | ||||||||
| Industria de Diseno Textil SA | 156,245 | 6,814,848 | ||||||
| Sweden | 4.6% | ||||||||
| Assa Abloy AB, Class B | 228,063 | 6,570,361 | ||||||
| Hexagon AB, B Shares | 435,910 | 5,251,887 | ||||||
| 11,822,248 | ||||||||
| Switzerland | 3.7% | ||||||||
| Partners Group Holding AG | 6,603 | 9,546,455 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 119
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard International Quality Growth Portfolio (continued) | ||||||||
| Taiwan | 4.4% | ||||||||
| Lotes Co. Ltd. | 80,000 | $ | 2,778,887 | |||||
| Taiwan Semiconductor Manufacturing Co. Ltd. ADR | 83,030 | 8,635,120 | ||||||
| 11,414,007 | ||||||||
| United Kingdom | 12.6% | ||||||||
| Allfunds Group PLC | 206,021 | 1,466,836 | ||||||
| Diageo PLC | 138,792 | 5,040,120 | ||||||
| Diploma PLC | 52,311 | 2,382,978 | ||||||
| London Stock Exchange Group PLC | 51,108 | 6,041,669 | ||||||
| RELX PLC | 288,414 | 11,411,581 | ||||||
| Unilever PLC | 124,507 | 6,028,717 | ||||||
| 32,371,901 | ||||||||
| United States | 10.6% | ||||||||
| Accenture PLC, Class A | 24,283 | 8,521,148 | ||||||
| Aon PLC, Class A | 30,558 | 8,892,989 | ||||||
| BRP, Inc. | 56,228 | 4,023,651 | ||||||
| Experian PLC | 141,251 | 5,756,228 | ||||||
| 27,194,016 | ||||||||
| Total Common Stocks (Cost $227,966,043) | 247,695,064 | |||||||
| Preferred Stocks | 1.2% | ||||||||
| Germany | 1.2% | ||||||||
| Sartorius AG (Cost $3,239,539) | 8,183 | 3,010,690 | ||||||
The accompanying notes are an integral part of these financial statements.
120 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard International Quality Growth Portfolio (concluded) | ||||||||
| Short-Term Investments | 2.6% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $6,779,522) | 6,779,522 | $ | 6,779,522 | |||||
| Total Investments | 99.8% (Cost $237,985,104) | $ | 257,485,276 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.2% | 442,377 | |||||||
| Net Assets | 100.0% | $ | 257,927,653 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 121
The accompanying notes are an integral part of these financial statements.
122 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Small Cap Equity Portfolio (continued) | ||||||||
| France | 3.5% | ||||||||
| Gaztransport Et Technigaz SA | 1,045 | $ | 138,445 | |||||
| Remy Cointreau SA | 1,465 | 186,132 | ||||||
| SOITEC (*) | 520 | 93,359 | ||||||
| 417,936 | ||||||||
| Germany | 8.4% | ||||||||
| Covestro AG (*) | 2,509 | 145,934 | ||||||
| CTS Eventim AG & Co. KGaA | 1,509 | 104,262 | ||||||
| Gerresheimer AG | 724 | 75,410 | ||||||
| Hensoldt AG | 4,632 | 124,837 | ||||||
| JOST Werke SE | 3,120 | 152,239 | ||||||
| Siltronic AG | 1,093 | 106,725 | ||||||
| Sirius Real Estate Ltd. | 153,163 | 183,657 | ||||||
| Stabilus SE | 1,778 | 121,139 | ||||||
| 1,014,203 | ||||||||
| Greece | 1.8% | ||||||||
| Jumbo SA | 7,930 | 219,973 | ||||||
| Israel | 0.7% | ||||||||
| Israel Discount Bank Ltd., Class A | 17,028 | 84,983 | ||||||
| Italy | 7.3% | ||||||||
| Italgas SpA | 37,038 | 212,187 | ||||||
| OVS SpA | 41,371 | 103,752 | ||||||
| Sanlorenzo SpA | 3,650 | 170,661 | ||||||
| Sesa SpA | 1,060 | 144,299 | ||||||
| SOL SpA | 3,562 | 109,443 | ||||||
| Tinexta SpA | 5,999 | 134,655 | ||||||
| 874,997 | ||||||||
| Japan | 28.2% | ||||||||
| Ai Holdings Corp. | 6,500 | 107,559 | ||||||
| BayCurrent Consulting, Inc. | 4,600 | 160,804 | ||||||
| Bell System24 Holdings, Inc. | 19,300 | 239,318 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 123
| Description | Shares | Fair Value | ||||||
| Lazard International Small Cap Equity Portfolio (continued) | ||||||||
| GMO internet group, Inc. | 6,000 | $ | 108,711 | |||||
| Hulic Co. Ltd. | 22,500 | 234,950 | ||||||
| Koito Manufacturing Co. Ltd. | 7,400 | 114,967 | ||||||
| MatsukiyoCocokara & Co. | 7,700 | 136,096 | ||||||
| MINEBEA MITSUMI, Inc. | 6,500 | 132,981 | ||||||
| MISUMI Group, Inc. | 7,500 | 126,492 | ||||||
| Nihon Kohden Corp. | 6,900 | 217,924 | ||||||
| Nippon Gas Co. Ltd. | 12,200 | 201,004 | ||||||
| Persol Holdings Co. Ltd. | 69,600 | 119,063 | ||||||
| Relo Group, Inc. | 11,800 | 142,025 | ||||||
| Sanken Electric Co. Ltd. | 2,000 | 109,431 | ||||||
| Shin Nippon Biomedical Laboratories Ltd. | 9,600 | 115,301 | ||||||
| Taiyo Yuden Co. Ltd. | 4,100 | 108,288 | ||||||
| TechnoPro Holdings, Inc. | 6,535 | 171,292 | ||||||
| Tokyo Century Corp. | 13,200 | 142,548 | ||||||
| Toyo Suisan Kaisha Ltd. | 2,400 | 123,606 | ||||||
| Trend Micro, Inc. | 2,500 | 133,014 | ||||||
| Trusco Nakayama Corp. | 6,600 | 114,520 | ||||||
| USS Co. Ltd. | 8,200 | 164,618 | ||||||
| Zenkoku Hosho Co. Ltd. | 4,742 | 178,529 | ||||||
| 3,403,041 | ||||||||
| Jersey | 1.8% | ||||||||
| JTC PLC | 21,195 | 219,975 | ||||||
| Mexico | 1.2% | ||||||||
| Arca Continental SAB de CV | 13,500 | 147,402 | ||||||
| Netherlands | 5.3% | ||||||||
| Aalberts NV | 2,487 | 108,232 | ||||||
| Akzo Nobel NV | 2,076 | 171,531 | ||||||
| Arcadis NV | 3,503 | 189,392 | ||||||
| ASM International NV | 316 | 164,555 | ||||||
| 633,710 | ||||||||
| Norway | 0.7% | ||||||||
| Crayon Group Holding ASA (*) | 10,735 | 89,314 | ||||||
The accompanying notes are an integral part of these financial statements.
124 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Small Cap Equity Portfolio (continued) | ||||||||
| Portugal | 0.7% | ||||||||
| Galp Energia SGPS SA | 5,922 | $ | 87,113 | |||||
| Spain | 1.2% | ||||||||
| Bankinter SA | 21,776 | 139,360 | ||||||
| Sweden | 1.0% | ||||||||
| Lindab International AB | 6,173 | 121,844 | ||||||
| Switzerland | 2.3% | ||||||||
| Emmi AG | 137 | 148,578 | ||||||
| Tecan Group AG | 315 | 128,681 | ||||||
| 277,259 | ||||||||
| United Kingdom | 15.1% | ||||||||
| Allfunds Group PLC | 16,656 | 118,588 | ||||||
| Auto Trader Group PLC | 15,811 | 145,180 | ||||||
| Britvic PLC | 11,150 | 119,533 | ||||||
| ConvaTec Group PLC | 56,012 | 174,242 | ||||||
| Dowlais Group PLC | 107,780 | 146,345 | ||||||
| Genuit Group. PLC | 30,797 | 158,034 | ||||||
| GlobalData PLC | 54,691 | 136,473 | ||||||
| JET2 PLC | 10,000 | 158,650 | ||||||
| Life Science REIT PLC | 118,929 | 95,663 | ||||||
| Marlowe PLC (*) | 13,413 | 73,431 | ||||||
| Urban Logistics REIT PLC | 122,941 | 199,233 | ||||||
| Volution Group PLC | 26,617 | 146,597 | ||||||
| Weir Group PLC | 6,119 | 146,920 | ||||||
| 1,818,889 | ||||||||
| United States | 0.9% | ||||||||
| ICON PLC (*) | 378 | 107,000 | ||||||
| Total Common Stocks (Cost $11,497,696) | 11,839,527 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 125
| Description | Shares | Fair Value | ||||||
| Lazard International Small Cap Equity Portfolio (concluded) | ||||||||
| Short-Term Investments | 0.7% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $79,798) | 79,798 | $ | 79,798 | |||||
| Total Investments | 98.9% (Cost $11,577,494) | $ | 11,919,325 | ||||||
| Cash and Other Assets in Excess of Liabilities | 1.1% | 132,608 | |||||||
| Net Assets | 100.0% | $ | 12,051,933 | ||||||
The accompanying notes are an integral part of these financial statements.
126 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 127
| Description | Shares | Fair Value | ||||||
| Lazard International Strategic Equity Portfolio (continued) | ||||||||
| Infineon Technologies AG | 1,096,689 | $ | 45,741,336 | |||||
| Merck KGaA | 387,962 | 61,708,359 | ||||||
| Schott Pharma AG & Co. KGaA | 1,044,676 | 38,755,420 | ||||||
| Siemens AG | 555,239 | 104,146,223 | ||||||
| 376,829,768 | ||||||||
| Hong Kong | 1.3% | ||||||||
| AIA Group Ltd. | 6,624,400 | 57,535,602 | ||||||
| India | 1.2% | ||||||||
| HDFC Bank Ltd. | 2,533,569 | 51,974,829 | ||||||
| Ireland | 2.4% | ||||||||
| Ryanair Holdings PLC ADR (*) | 783,824 | 104,530,769 | ||||||
| Israel | 2.3% | ||||||||
| Bank Leumi Le-Israel BM | 11,178,702 | 89,851,662 | ||||||
| Wix.com Ltd. (*) | 90,261 | 11,103,908 | ||||||
| 100,955,570 | ||||||||
| Italy | 1.2% | ||||||||
| UniCredit SpA | 1,965,951 | 53,331,784 | ||||||
| Japan | 13.7% | ||||||||
| Advantest Corp. | 2,094,500 | 72,123,058 | ||||||
| BayCurrent Consulting, Inc. | 1,898,900 | 66,380,599 | ||||||
| Daikin Industries Ltd. | 384,400 | 62,441,829 | ||||||
| FANUC Corp. | 1,888,300 | 55,549,333 | ||||||
| Hoya Corp. | 763,400 | 94,943,390 | ||||||
| Kobe Bussan Co. Ltd. | 1,621,700 | 47,858,705 | ||||||
| Koito Manufacturing Co. Ltd. | 2,670,600 | 41,490,769 | ||||||
| Kokusai Electric Corp. | 446,200 | 9,667,440 | ||||||
| Renesas Electronics Corp. (*) | 4,226,500 | 75,853,007 | ||||||
| Suzuki Motor Corp. | 1,091,772 | 46,995,028 | ||||||
| Tokyo Electron Ltd. | 126,100 | 22,414,351 | ||||||
| 595,717,509 | ||||||||
The accompanying notes are an integral part of these financial statements.
128 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard International Strategic Equity Portfolio (continued) | ||||||||
| Mexico | 2.2% | ||||||||
| Arca Continental SAB de CV | 8,493,700 | $ | 92,739,940 | |||||
| Netherlands | 5.5% | ||||||||
| Akzo Nobel NV | 608,655 | 50,290,505 | ||||||
| ASML Holding NV | 172,003 | 129,864,529 | ||||||
| Universal Music Group NV | 2,076,401 | 59,294,019 | ||||||
| 239,449,053 | ||||||||
| Portugal | 1.6% | ||||||||
| EDP - Energias de Portugal SA | 13,384,871 | 67,624,216 | ||||||
| Singapore | 1.5% | ||||||||
| DBS Group Holdings Ltd. | 2,560,300 | 64,685,324 | ||||||
| Sweden | 1.9% | ||||||||
| Hexagon AB, B Shares | 6,946,930 | 83,697,307 | ||||||
| Switzerland | 2.1% | ||||||||
| ABB Ltd. | 2,018,173 | 89,685,768 | ||||||
| Taiwan | 2.2% | ||||||||
| Taiwan Semiconductor Manufacturing Co. Ltd. | 5,013,000 | 96,477,607 | ||||||
| United Kingdom | 14.4% | ||||||||
| Allfunds Group PLC | 5,479,082 | 39,010,184 | ||||||
| Coca-Cola Europacific Partners PLC | 1,500,557 | 99,819,949 | ||||||
| Compass Group PLC | 3,565,620 | 97,430,262 | ||||||
| HSBC Holdings PLC | 11,846,999 | 95,689,257 | ||||||
| Informa PLC | 6,595,357 | 65,477,276 | ||||||
| RELX PLC | 4,529,553 | 179,643,388 | ||||||
| WPP PLC | 5,073,958 | 48,233,150 | ||||||
| 625,303,466 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 129
| Description | Shares | Fair Value | ||||||
| Lazard International Strategic Equity Portfolio (concluded) | ||||||||
| United States | 10.3% | ||||||||
| Accenture PLC, Class A | 278,598 | $ | 97,762,824 | |||||
| Aon PLC, Class A | 378,745 | 110,222,370 | ||||||
| Chubb Ltd. | 251,569 | 56,854,594 | ||||||
| Experian PLC | 1,543,605 | 62,904,635 | ||||||
| ICON PLC (*) | 423,034 | 119,748,235 | ||||||
| 447,492,658 | ||||||||
| Total Common Stocks (Cost $3,287,608,087) | 4,273,806,905 | |||||||
| Short-Term Investments | 1.5% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $64,496,351) | 64,496,351 | 64,496,351 | ||||||
| Total Investments | 100.0% (Cost $3,352,104,438) | $ | 4,338,303,256 | ||||||
| Liabilities in Excess of Cash and Other Assets | 0.0% | (334,886 | ) | ||||||
| Net Assets | 100.0% | $ | 4,337,968,370 | ||||||
The accompanying notes are an integral part of these financial statements.
130 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 131
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| France | 1.5% | ||||||||
| Cie Generale des Etablissements Michelin SCA | 1,727 | $ | 62,056 | |||||
| Orange SA | 18,782 | 213,673 | ||||||
| 275,729 | ||||||||
| Germany | 0.4% | ||||||||
| Beiersdorf AG | 444 | 66,524 | ||||||
| Hong Kong | 1.0% | ||||||||
| Jardine Matheson Holdings Ltd. | 1,200 | 49,396 | ||||||
| Link REIT | 7,700 | 43,061 | ||||||
| Sun Hung Kai Properties Ltd. | 5,000 | 53,809 | ||||||
| WH Group Ltd. | 63,500 | 40,958 | ||||||
| 187,224 | ||||||||
| Israel | 0.2% | ||||||||
| Bezeq The Israeli Telecommunication Corp. Ltd. | 32,877 | 44,679 | ||||||
| Italy | 0.5% | ||||||||
| Banco BPM SpA | 8,164 | 43,107 | ||||||
| Ferrari NV | 132 | 44,489 | ||||||
| 87,596 | ||||||||
| Japan | 16.3% | ||||||||
| ANA Holdings, Inc. (*) | 1,900 | 41,174 | ||||||
| Central Japan Railway Co. | 3,000 | 76,066 | ||||||
| Chubu Electric Power Co., Inc. | 9,800 | 126,450 | ||||||
| Chugoku Electric Power Co., Inc. | 6,300 | 45,093 | ||||||
| Daiwa Securities Group, Inc. | 5,400 | 36,192 | ||||||
| East Japan Railway Co. | 1,100 | 63,281 | ||||||
| Ezaki Glico Co. Ltd. | 1,600 | 47,320 | ||||||
| Hachijuni Bank Ltd. | 18,000 | 100,085 | ||||||
| Japan Post Bank Co. Ltd. | 17,400 | 177,127 | ||||||
| Japan Post Holdings Co. Ltd. | 30,800 | 274,873 | ||||||
| Japan Real Estate Investment Corp. REIT | 36 | 148,917 | ||||||
| Japan Tobacco, Inc. | 2,300 | 59,369 | ||||||
The accompanying notes are an integral part of these financial statements.
132 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| KDDI Corp. | 3,200 | $ | 101,594 | |||||
| Kyushu Railway Co. | 4,800 | 105,658 | ||||||
| Lawson, Inc. | 2,900 | 149,674 | ||||||
| Mebuki Financial Group, Inc. | 14,500 | 43,982 | ||||||
| Mizuho Financial Group, Inc. | 3,700 | 63,282 | ||||||
| MS&AD Insurance Group Holdings, Inc. | 3,000 | 117,735 | ||||||
| Nagoya Railroad Co. Ltd. | 2,700 | 43,243 | ||||||
| Ono Pharmaceutical Co. Ltd. | 6,400 | 114,313 | ||||||
| Osaka Gas Co. Ltd. | 10,100 | 210,805 | ||||||
| Otsuka Holdings Co. Ltd. | 3,600 | 134,739 | ||||||
| Rengo Co. Ltd. | 6,200 | 41,274 | ||||||
| Sega Sammy Holdings, Inc. | 6,400 | 89,251 | ||||||
| Seven & i Holdings Co. Ltd. | 1,100 | 43,566 | ||||||
| Shizuoka Financial Group, Inc. | 6,500 | 54,989 | ||||||
| SoftBank Corp. | 3,500 | 43,620 | ||||||
| Sompo Holdings, Inc. | 900 | 43,947 | ||||||
| Toho Co. Ltd. | 1,300 | 43,893 | ||||||
| Tokyo Gas Co. Ltd. | 10,800 | 247,583 | ||||||
| Yamaguchi Financial Group, Inc. | 5,700 | 50,939 | ||||||
| 2,940,034 | ||||||||
| Netherlands | 0.5% | ||||||||
| Koninklijke Ahold Delhaize NV | 1,497 | 42,983 | ||||||
| Koninklijke KPN NV | 11,600 | 39,933 | ||||||
| 82,916 | ||||||||
| New Zealand | 0.6% | ||||||||
| Spark New Zealand Ltd. | 32,315 | 105,852 | ||||||
| Norway | 0.3% | ||||||||
| Orkla ASA | 6,394 | 49,574 | ||||||
| Singapore | 0.8% | ||||||||
| Jardine Cycle & Carriage Ltd. | 4,000 | 89,934 | ||||||
| Sembcorp Industries Ltd. | 11,600 | 46,567 | ||||||
| 136,501 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 133
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| Switzerland | 0.9% | ||||||||
| Swisscom AG | 286 | $ | 172,103 | |||||
| United Kingdom | 3.5% | ||||||||
| BAE Systems PLC | 9,538 | 134,943 | ||||||
| HSBC Holdings PLC | 13,391 | 108,160 | ||||||
| IG Group Holdings PLC | 5,266 | 51,299 | ||||||
| RELX PLC | 2,639 | 104,663 | ||||||
| Serco Group PLC | 18,656 | 38,411 | ||||||
| Standard Chartered PLC | 2,238 | 18,931 | ||||||
| Unilever PLC | 2,703 | 130,782 | ||||||
| Vodafone Group PLC | 42,303 | 36,748 | ||||||
| 623,937 | ||||||||
| United States | 64.4% | ||||||||
| AbbVie, Inc. | 683 | 105,845 | ||||||
| Agree Realty Corp. REIT | 3,016 | 189,857 | ||||||
| Allison Transmission Holdings, Inc. | 1,348 | 78,386 | ||||||
| Alnylam Pharmaceuticals, Inc. (*) | 229 | 43,833 | ||||||
| Alphabet, Inc., Class C (*) | 1,059 | 149,245 | ||||||
| Altria Group, Inc. | 2,938 | 118,519 | ||||||
| Amdocs Ltd. | 1,647 | 144,755 | ||||||
| Ameren Corp. | 1,460 | 105,616 | ||||||
| American Homes 4 Rent, Class A REIT | 1,165 | 41,893 | ||||||
| AMN Healthcare Services, Inc. (*) | 822 | 61,551 | ||||||
| Aon PLC, Class A | 414 | 120,482 | ||||||
| AptarGroup, Inc. | 579 | 71,576 | ||||||
| Arcosa, Inc. | 567 | 46,857 | ||||||
| Assurant, Inc. | 444 | 74,810 | ||||||
| AT&T, Inc. | 4,012 | 67,321 | ||||||
| Atmos Energy Corp. | 1,194 | 138,385 | ||||||
| Automatic Data Processing, Inc. | 297 | 69,192 | ||||||
| Biogen, Inc. (*) | 270 | 69,868 | ||||||
| Boston Scientific Corp. (*) | 840 | 48,560 | ||||||
| Brady Corp., Class A | 757 | 44,428 | ||||||
| Bristol-Myers Squibb Co. | 4,897 | 251,265 | ||||||
The accompanying notes are an integral part of these financial statements.
134 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| Broadcom, Inc. | 99 | $ | 110,509 | |||||
| Cadence Design Systems, Inc. (*) | 147 | 40,038 | ||||||
| Cal-Maine Foods, Inc. | 2,092 | 120,060 | ||||||
| Campbell Soup Co. | 1,025 | 44,311 | ||||||
| Cardinal Health, Inc. | 449 | 45,259 | ||||||
| Casey’s General Stores, Inc. | 181 | 49,728 | ||||||
| Cboe Global Markets, Inc. | 721 | 128,742 | ||||||
| CDW Corp. | 501 | 113,887 | ||||||
| Cencora, Inc. | 915 | 187,923 | ||||||
| Centene Corp. (*) | 893 | 66,270 | ||||||
| Chubb Ltd. | 401 | 90,626 | ||||||
| Cigna Group | 284 | 85,044 | ||||||
| Cirrus Logic, Inc. (*) | 522 | 43,425 | ||||||
| Cisco Systems, Inc. | 3,267 | 165,049 | ||||||
| Clorox Co. | 696 | 99,243 | ||||||
| Cognizant Technology Solutions Corp., Class A | 930 | 70,243 | ||||||
| Colgate-Palmolive Co. | 2,762 | 220,159 | ||||||
| Comcast Corp., Class A | 1,371 | 60,118 | ||||||
| CommVault Systems, Inc. (*) | 816 | 65,158 | ||||||
| Concentrix Corp. | 530 | 52,051 | ||||||
| Consolidated Edison, Inc. | 2,293 | 208,594 | ||||||
| Corebridge Financial, Inc. | 2,506 | 54,280 | ||||||
| Coterra Energy, Inc. | 3,458 | 88,248 | ||||||
| CVS Health Corp. | 2,187 | 172,686 | ||||||
| DaVita, Inc. (*) | 440 | 46,094 | ||||||
| Deckers Outdoor Corp. (*) | 69 | 46,122 | ||||||
| Electronic Arts, Inc. | 1,066 | 145,839 | ||||||
| Elevance Health, Inc. | 118 | 55,644 | ||||||
| Eli Lilly & Co. | 73 | 42,553 | ||||||
| Enact Holdings, Inc. | 1,569 | 45,328 | ||||||
| Entergy Corp. | 1,584 | 160,285 | ||||||
| Everest Group Ltd. | 258 | 91,224 | ||||||
| Fiserv, Inc. (*) | 1,106 | 146,921 | ||||||
| General Mills, Inc. | 2,394 | 155,945 | ||||||
| Gilead Sciences, Inc. | 3,456 | 279,971 | ||||||
| Global Payments, Inc. | 408 | 51,816 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 135
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| Globe Life, Inc. | 1,035 | $ | 125,980 | |||||
| GoDaddy, Inc., Class A (*) | 491 | 52,125 | ||||||
| GSK PLC | 5,236 | 96,716 | ||||||
| H&R Block, Inc. | 1,097 | 53,062 | ||||||
| Haemonetics Corp. (*) | 469 | 40,104 | ||||||
| Hartford Financial Services Group, Inc. | 566 | 45,495 | ||||||
| Hershey Co. | 1,069 | 199,304 | ||||||
| Humana, Inc. | 93 | 42,576 | ||||||
| Huron Consulting Group, Inc. (*) | 435 | 44,718 | ||||||
| Ingredion, Inc. | 402 | 43,629 | ||||||
| International Seaways, Inc. | 1,144 | 52,029 | ||||||
| J M Smucker Co. | 469 | 59,272 | ||||||
| Johnson & Johnson | 253 | 39,655 | ||||||
| Juniper Networks, Inc. | 1,623 | 47,846 | ||||||
| Kellanova | 2,001 | 111,876 | ||||||
| Kimberly-Clark Corp. | 2,129 | 258,695 | ||||||
| Kroger Co. | 2,003 | 91,557 | ||||||
| Lockheed Martin Corp. | 93 | 42,151 | ||||||
| M&T Bank Corp. | 371 | 50,857 | ||||||
| MasterCard, Inc., Class A | 176 | 75,066 | ||||||
| McDonald’s Corp. | 496 | 147,069 | ||||||
| McKesson Corp. | 246 | 113,893 | ||||||
| Merck & Co., Inc. | 1,885 | 205,503 | ||||||
| Meta Platforms, Inc., Class A (*) | 132 | 46,723 | ||||||
| Microsoft Corp. | 117 | 43,997 | ||||||
| Molina Healthcare, Inc. (*) | 190 | 68,649 | ||||||
| MSC Industrial Direct Co., Inc. Class A | 755 | 76,451 | ||||||
| National Fuel Gas Co. | 1,979 | 99,286 | ||||||
| Neurocrine Biosciences, Inc. (*) | 378 | 49,805 | ||||||
| NewMarket Corp. | 258 | 140,824 | ||||||
| NiSource, Inc. | 3,480 | 92,394 | ||||||
| Northrop Grumman Corp. | 101 | 47,282 | ||||||
| NVR, Inc. (*) | 5 | 35,002 | ||||||
| PACCAR, Inc. | 480 | 46,872 | ||||||
| PepsiCo, Inc. | 1,210 | 205,506 | ||||||
| Pfizer, Inc. | 1,277 | 36,765 | ||||||
The accompanying notes are an integral part of these financial statements.
136 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (continued) | ||||||||
| Pinnacle West Capital Corp. | 646 | $ | 46,409 | |||||
| PNM Resources, Inc. | 1,946 | 80,954 | ||||||
| Procter & Gamble Co. | 1,721 | 252,195 | ||||||
| Public Service Enterprise Group, Inc. | 671 | 41,032 | ||||||
| QUALCOMM, Inc. | 560 | 80,993 | ||||||
| Qualys, Inc. (*) | 482 | 94,607 | ||||||
| Regeneron Pharmaceuticals, Inc. (*) | 122 | 107,151 | ||||||
| RingCentral, Inc., Class A (*) | 449 | 15,244 | ||||||
| Roche Holding AG | 1,079 | 312,729 | ||||||
| Sanofi SA | 411 | 40,747 | ||||||
| SBA Communications Corp. REIT | 405 | 102,744 | ||||||
| Sempra | 745 | 55,674 | ||||||
| Super Micro Computer, Inc. (*) | 172 | 48,893 | ||||||
| Synopsys, Inc. (*) | 148 | 76,207 | ||||||
| TJX Cos., Inc. | 1,118 | 104,880 | ||||||
| Tradeweb Markets, Inc., Class A | 494 | 44,895 | ||||||
| Travelers Cos., Inc. | 193 | 36,765 | ||||||
| United Therapeutics Corp. (*) | 213 | 46,837 | ||||||
| UnitedHealth Group, Inc. | 190 | 100,029 | ||||||
| VeriSign, Inc. (*) | 420 | 86,503 | ||||||
| Verizon Communications, Inc. | 5,912 | 222,882 | ||||||
| Vertex Pharmaceuticals, Inc. (*) | 131 | 53,303 | ||||||
| W. R. Berkley Corp. | 619 | 43,776 | ||||||
| Walmart, Inc. | 958 | 151,029 | ||||||
| Waste Management, Inc. | 828 | 148,295 | ||||||
| WD-40 Co. | 277 | 66,222 | ||||||
| Western Union Co. | 4,290 | 51,137 | ||||||
| White Mountains Insurance Group Ltd. | 50 | 75,250 | ||||||
| Willis Towers Watson PLC | 181 | 43,657 | ||||||
| WK Kellogg Co. | 502 | 6,596 | ||||||
| WP Carey, Inc. REIT | 769 | 49,839 | ||||||
| Xcel Energy, Inc. | 2,010 | 124,439 | ||||||
| Zoom Video Communications, Inc. Class A (*) | 584 | 41,995 | ||||||
| 11,574,279 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 137
| Description | Shares | Fair Value | ||||||
| Lazard Managed Equity Volatility Portfolio (concluded) | ||||||||
| Total Common Stocks (Cost $16,719,711) | $ | 17,860,175 | ||||||
| Warrants | 0.0% | ||||||||
| Canada | 0.0% | ||||||||
| Constellation Software, Inc. Expires 03/31/40 (*), (¢) (Cost $0) | 22 | 0 | ||||||
| Short-Term Investments | 0.6% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $107,656) | 107,656 | 107,656 | ||||||
| Total Investments | 99.9% (Cost $16,827,367) | $ | 17,967,831 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.1% | 13,483 | |||||||
| Net Assets | 100.0% | $ | 17,981,314 | ||||||
The accompanying notes are an integral part of these financial statements.
138 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 139
| Description | Shares | Fair Value | ||||||
| Lazard US Equity Concentrated Portfolio (concluded) | ||||||||
| Personal Care Products | 1.6% | ||||||||
| Estee Lauder Cos., Inc., Class A | 21,761 | $ | 3,182,546 | |||||
| Professional Services | 4.2% | ||||||||
| Verisk Analytics, Inc. | 35,660 | 8,517,748 | ||||||
| Semiconductors & Semiconductor Equipment | 9.2% | ||||||||
| Analog Devices, Inc. | 56,352 | 11,189,253 | ||||||
| Skyworks Solutions, Inc. | 66,674 | 7,495,491 | ||||||
| 18,684,744 | ||||||||
| Software | 2.6% | ||||||||
| Oracle Corp. | 50,310 | 5,304,183 | ||||||
| Specialized REITs | 10.3% | ||||||||
| Crown Castle, Inc. | 92,861 | 10,696,659 | ||||||
| Public Storage | 33,336 | 10,167,480 | ||||||
| 20,864,139 | ||||||||
| Total Common Stocks (Cost $129,434,291) | 195,734,786 | |||||||
| Short-Term Investments | 4.4% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $8,991,911) | 8,991,911 | 8,991,911 | ||||||
| Total Investments | 100.9% (Cost $138,426,202) | $ | 204,726,697 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.9)% | (1,804,285 | ) | ||||||
| Net Assets | 100.0% | $ | 202,922,412 | ||||||
The accompanying notes are an integral part of these financial statements.
140 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 141
| Description | Shares | Fair Value | ||||||
| Lazard US Equity Focus Portfolio (continued) | ||||||||
| Health Care Providers & Services | 3.8% | ||||||||
| UnitedHealth Group, Inc. | 6,580 | $ | 3,464,173 | |||||
| Hotels, Restaurants & Leisure | 3.3% | ||||||||
| McDonald’s Corp. | 10,142 | 3,007,204 | ||||||
| Industrial Conglomerates | 3.4% | ||||||||
| Honeywell International, Inc. | 14,971 | 3,139,568 | ||||||
| Industrial REITs | 2.2% | ||||||||
| Prologis, Inc. | 15,454 | 2,060,018 | ||||||
| Insurance | 4.0% | ||||||||
| Marsh & McLennan Cos., Inc. | 19,478 | 3,690,497 | ||||||
| Interactive Media & Services | 7.6% | ||||||||
| Alphabet, Inc., Class A (*) | 50,225 | 7,015,930 | ||||||
| IT Services | 3.0% | ||||||||
| Accenture PLC, Class A | 7,912 | 2,776,400 | ||||||
| Life Sciences Tools & Services | 6.2% | ||||||||
| Danaher Corp. | 16,039 | 3,710,462 | ||||||
| IQVIA Holdings, Inc. (*) | 8,693 | 2,011,387 | ||||||
| 5,721,849 | ||||||||
| Oil, Gas & Consumable Fuels | 3.3% | ||||||||
| ConocoPhillips | 25,976 | 3,015,034 | ||||||
| Personal Care Products | 1.6% | ||||||||
| Estee Lauder Cos., Inc., Class A | 10,303 | 1,506,814 | ||||||
| Pharmaceuticals | 2.8% | ||||||||
| Johnson & Johnson | 16,420 | 2,573,671 | ||||||
The accompanying notes are an integral part of these financial statements.
142 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Equity Focus Portfolio (concluded) | ||||||||
| Semiconductors & Semiconductor Equipment | 6.3% | ||||||||
| Analog Devices, Inc. | 17,868 | $ | 3,547,870 | |||||
| Applied Materials, Inc. | 13,683 | 2,217,604 | ||||||
| 5,765,474 | ||||||||
| Software | 9.9% | ||||||||
| Microsoft Corp. | 24,147 | 9,080,238 | ||||||
| Total Common Stocks (Cost $59,650,282) | 87,425,000 | |||||||
| Short-Term Investments | 4.9% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $4,475,120) | 4,475,120 | 4,475,120 | ||||||
| Total Investments | 100.1% (Cost $64,125,402) | $ | 91,900,120 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.1)% | (46,476 | ) | ||||||
| Net Assets | 100.0% | $ | 91,853,644 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 143
The accompanying notes are an integral part of these financial statements.
144 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Small Cap Equity Select Portfolio (continued) | ||||||||
| Commercial Services & Supplies | 1.0% | ||||||||
| Vestis Corp. | 17,752 | $ | 375,277 | |||||
| Communications Equipment | 2.0% | ||||||||
| Ciena Corp. (*) | 10,593 | 476,791 | ||||||
| F5, Inc. (*) | 1,751 | 313,394 | ||||||
| 790,185 | ||||||||
| Construction Materials | 0.8% | ||||||||
| Eagle Materials, Inc. | 1,635 | 331,643 | ||||||
| Consumer Staples Distribution & Retail | 2.7% | ||||||||
| BJ’s Wholesale Club Holdings, Inc. (*) | 6,155 | 410,292 | ||||||
| Chefs’ Warehouse Inc. (*) | 9,319 | 274,258 | ||||||
| U.S. Foods Holding Corp. (*) | 8,765 | 398,019 | ||||||
| 1,082,569 | ||||||||
| Containers & Packaging | 2.7% | ||||||||
| Avery Dennison Corp. | 2,540 | 513,486 | ||||||
| Graphic Packaging Holding Co. | 23,169 | 571,116 | ||||||
| 1,084,602 | ||||||||
| Electrical Equipment | 2.4% | ||||||||
| Array Technologies, Inc. (*) | 19,539 | 328,255 | ||||||
| EnerSys | 6,021 | 607,880 | ||||||
| 936,135 | ||||||||
| Electronic Equipment, Instruments & Components | 1.2% | ||||||||
| Cognex Corp. | 11,686 | 487,774 | ||||||
| Energy Equipment & Services | 2.7% | ||||||||
| Cactus, Inc., Class A | 13,374 | 607,180 | ||||||
| Liberty Energy, Inc. | 24,859 | 450,942 | ||||||
| 1,058,122 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 145
| Description | Shares | Fair Value | ||||||
| Lazard US Small Cap Equity Select Portfolio (continued) | ||||||||
| Entertainment | 1.3% | ||||||||
| Take-Two Interactive Software, Inc. (*) | 3,084 | $ | 496,370 | |||||
| Gas Utilities | 1.9% | ||||||||
| New Jersey Resources Corp. | 16,965 | 756,300 | ||||||
| Health Care Equipment & Supplies | 5.4% | ||||||||
| Enovis Corp. (*) | 7,356 | 412,083 | ||||||
| Envista Holdings Corp. (*) | 20,721 | 498,547 | ||||||
| Lantheus Holdings, Inc. (*) | 9,715 | 602,330 | ||||||
| QuidelOrtho Corp. (*) | 8,114 | 598,002 | ||||||
| 2,110,962 | ||||||||
| Health Care Providers & Services | 1.5% | ||||||||
| Henry Schein, Inc. (*) | 7,633 | 577,894 | ||||||
| Health Care Technology | 1.1% | ||||||||
| Phreesia, Inc. (*) | 18,204 | 421,423 | ||||||
| Hotel & Resort REITs | 1.1% | ||||||||
| Summit Hotel Properties, Inc. | 61,745 | 414,926 | ||||||
| Hotels, Restaurants & Leisure | 3.1% | ||||||||
| Brinker International, Inc. (*) | 11,791 | 509,135 | ||||||
| Kura Sushi USA, Inc., Class A (*) | 2,784 | 211,584 | ||||||
| Wyndham Hotels & Resorts, Inc. | 6,266 | 503,849 | ||||||
| 1,224,568 | ||||||||
| Household Durables | 1.6% | ||||||||
| Helen of Troy Ltd. (*) | 5,355 | 646,938 | ||||||
| Insurance | 3.7% | ||||||||
| Globe Life, Inc. | 3,707 | 451,216 | ||||||
| Hanover Insurance Group, Inc. | 3,280 | 398,258 | ||||||
| Reinsurance Group of America, Inc. | 3,717 | 601,336 | ||||||
| 1,450,810 | ||||||||
The accompanying notes are an integral part of these financial statements.
146 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Small Cap Equity Select Portfolio (continued) | ||||||||
| Interactive Media & Services | 3.9% | ||||||||
| Cars.com, Inc. (*) | 29,893 | $ | 567,070 | |||||
| Ziff Davis, Inc. (*) | 8,446 | 567,487 | ||||||
| ZoomInfo Technologies, Inc. (*) | 21,688 | 401,011 | ||||||
| 1,535,568 | ||||||||
| IT Services | 1.3% | ||||||||
| Squarespace, Inc., Class A (*) | 15,294 | 504,855 | ||||||
| Leisure Products | 1.3% | ||||||||
| Brunswick Corp. | 5,213 | 504,358 | ||||||
| Life Sciences Tools & Services | 4.1% | ||||||||
| AbCellera Biologics, Inc. (*) | 72,085 | 411,605 | ||||||
| Charles River Laboratories International, Inc. (*) | 2,421 | 572,325 | ||||||
| ICON PLC (*) | 1,245 | 352,422 | ||||||
| Stevanato Group SpA | 9,852 | 268,861 | ||||||
| 1,605,213 | ||||||||
| Machinery | 4.9% | ||||||||
| Columbus McKinnon Corp. | 12,477 | 486,852 | ||||||
| Gates Industrial Corp. PLC (*) | 33,685 | 452,053 | ||||||
| Middleby Corp. (*) | 4,853 | 714,216 | ||||||
| Nordson Corp. | 1,086 | 286,878 | ||||||
| 1,939,999 | ||||||||
| Oil, Gas & Consumable Fuels | 3.5% | ||||||||
| Antero Resources Corp. (*) | 32,039 | 726,645 | ||||||
| Magnolia Oil & Gas Corp., Class A | 31,046 | 660,969 | ||||||
| 1,387,614 | ||||||||
| Professional Services | 3.9% | ||||||||
| Jacobs Solutions, Inc. | 4,095 | 531,531 | ||||||
| Leidos Holdings, Inc. | 3,332 | 360,656 | ||||||
| Sterling Check Corp. (*) | 46,339 | 645,039 | ||||||
| 1,537,226 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 147
| Description | Shares | Fair Value | ||||||
| Lazard US Small Cap Equity Select Portfolio (continued) | ||||||||
| Residential REITs | 1.4% | ||||||||
| Camden Property Trust | 5,483 | $ | 544,407 | |||||
| Retail REITs | 1.6% | ||||||||
| Brixmor Property Group, Inc. | 27,146 | 631,687 | ||||||
| Semiconductors & Semiconductor Equipment | 2.7% | ||||||||
| Allegro MicroSystems, Inc. (*) | 9,478 | 286,899 | ||||||
| MKS Instruments, Inc. | 4,712 | 484,723 | ||||||
| Onto Innovation, Inc. (*) | 1,853 | 283,324 | ||||||
| 1,054,946 | ||||||||
| Software | 6.0% | ||||||||
| CyberArk Software Ltd. (*) | 1,517 | 332,299 | ||||||
| Dolby Laboratories, Inc., Class A | 5,432 | 468,130 | ||||||
| Dynatrace, Inc. (*) | 6,544 | 357,891 | ||||||
| N-able, Inc. (*) | 35,523 | 470,679 | ||||||
| PTC, Inc. (*) | 2,277 | 398,384 | ||||||
| Tyler Technologies, Inc. (*) | 848 | 354,566 | ||||||
| 2,381,949 | ||||||||
| Specialized REITs | 1.4% | ||||||||
| CubeSmart | 11,796 | 546,745 | ||||||
| Specialty Retail | 3.2% | ||||||||
| Five Below, Inc. (*) | 2,492 | 531,195 | ||||||
| RH (*) | 887 | 258,543 | ||||||
| Warby Parker, Inc., Class A (*) | 33,481 | 472,082 | ||||||
| 1,261,820 | ||||||||
| Textiles, Apparel & Luxury Goods | 1.2% | ||||||||
| Steven Madden Ltd. | 10,911 | 458,262 | ||||||
| Total Common Stocks (Cost $31,583,431) | 38,419,992 | |||||||
The accompanying notes are an integral part of these financial statements.
148 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Small Cap Equity Select Portfolio (concluded) | ||||||||
| Total Investments | 97.5% (Cost $31,583,431) | $ | 38,419,992 | ||||||
| Cash and Other Assets in Excess of Liabilities | 2.5% | 993,874 | |||||||
| Net Assets | 100.0% | $ | 39,413,866 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 149
The accompanying notes are an integral part of these financial statements.
150 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Sustainable Equity Portfolio (continued) | ||||||||
| Containers & Packaging | 2.5% | ||||||||
| Avery Dennison Corp. | 917 | $ | 185,381 | |||||
| Ball Corp. | 1,994 | 114,695 | ||||||
| 300,076 | ||||||||
| Electrical Equipment | 2.6% | ||||||||
| Rockwell Automation, Inc. | 857 | 266,081 | ||||||
| Shoals Technologies Group, Inc., Class A (*) | 2,985 | 46,387 | ||||||
| 312,468 | ||||||||
| Electronic Equipment, Instruments & Components | 1.9% | ||||||||
| Amphenol Corp., Class A | 1,396 | 138,385 | ||||||
| Cognex Corp. | 2,094 | 87,404 | ||||||
| 225,789 | ||||||||
| Financial Services | 3.8% | ||||||||
| Visa, Inc., A Shares | 1,735 | 451,707 | ||||||
| Ground Transportation | 2.2% | ||||||||
| Norfolk Southern Corp. | 1,097 | 259,309 | ||||||
| Health Care Equipment & Supplies | 3.7% | ||||||||
| Boston Scientific Corp. (*) | 4,147 | 239,738 | ||||||
| Lantheus Holdings, Inc. (*) | 1,176 | 72,912 | ||||||
| Medtronic PLC | 1,595 | 131,396 | ||||||
| 444,046 | ||||||||
| Health Care Providers & Services | 5.6% | ||||||||
| Humana, Inc. | 359 | 164,354 | ||||||
| UnitedHealth Group, Inc. | 953 | 501,726 | ||||||
| 666,080 | ||||||||
| Household Products | 2.5% | ||||||||
| Procter & Gamble Co. | 2,014 | 295,132 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 151
| Description | Shares | Fair Value | ||||||
| Lazard US Sustainable Equity Portfolio (continued) | ||||||||
| Industrial REITs | 2.5% | ||||||||
| Prologis, Inc. | 2,213 | $ | 294,993 | |||||
| IT Services | 3.7% | ||||||||
| Accenture PLC, Class A | 1,236 | 433,725 | ||||||
| Life Sciences Tools & Services | 9.1% | ||||||||
| Agilent Technologies, Inc. | 1,456 | 202,428 | ||||||
| Danaher Corp. | 1,383 | 319,943 | ||||||
| Fortrea Holdings, Inc. (*) | 1,775 | 61,947 | ||||||
| IQVIA Holdings, Inc. (*) | 798 | 184,641 | ||||||
| Thermo Fisher Scientific, Inc. | 582 | 308,920 | ||||||
| 1,077,879 | ||||||||
| Machinery | 4.9% | ||||||||
| Deere & Co. | 498 | 199,135 | ||||||
| Nordson Corp. | 538 | 142,118 | ||||||
| Watts Water Technologies, Inc., Class A | 558 | 116,254 | ||||||
| Xylem, Inc. | 1,037 | 118,591 | ||||||
| 576,098 | ||||||||
| Personal Care Products | 1.1% | ||||||||
| Estee Lauder Cos., Inc., Class A | 897 | 131,186 | ||||||
| Pharmaceuticals | 3.7% | ||||||||
| Johnson & Johnson | 1,067 | 167,242 | ||||||
| Zoetis, Inc. | 1,396 | 275,528 | ||||||
| 442,770 | ||||||||
| Semiconductors & Semiconductor Equipment | 5.5% | ||||||||
| Analog Devices, Inc. | 1,934 | 384,015 | ||||||
| Applied Materials, Inc. | 1,176 | 190,594 | ||||||
| ON Semiconductor Corp. (*) | 877 | 73,256 | ||||||
| 647,865 | ||||||||
The accompanying notes are an integral part of these financial statements.
152 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Sustainable Equity Portfolio (concluded) | ||||||||
| Software | 18.2% | ||||||||
| Adobe, Inc. (*) | 339 | $ | 202,248 | |||||
| CyberArk Software Ltd. (*) | 558 | 122,230 | ||||||
| Intuit, Inc. | 379 | 236,886 | ||||||
| Microsoft Corp. | 3,230 | 1,214,609 | ||||||
| Salesforce, Inc. (*) | 1,416 | 372,606 | ||||||
| 2,148,579 | ||||||||
| Specialty Retail | 3.0% | ||||||||
| Home Depot, Inc. | 1,037 | 359,372 | ||||||
| Textiles, Apparel & Luxury Goods | 1.1% | ||||||||
| NIKE, Inc., Class B | 1,196 | 129,850 | ||||||
| Total Common Stocks (Cost $8,295,851) | 11,472,681 | |||||||
| Short-Term Investments | 3.3% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $386,412) | 386,412 | 386,412 | ||||||
| Total Investments | 100.2% (Cost $8,682,263) | $ | 11,859,093 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.2)% | (29,489 | ) | ||||||
| Net Assets | 100.0% | $ | 11,829,604 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 153
The accompanying notes are an integral part of these financial statements.
154 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Westamerica BanCorp | 1,111 | $ | 62,672 | |||||
| Wintrust Financial Corp. | 894 | 82,918 | ||||||
| 943,189 | ||||||||
| Beverages | 0.6% | ||||||||
| Coca-Cola Consolidated, Inc. | 123 | 114,193 | ||||||
| Primo Water Corp. | 9,515 | 143,201 | ||||||
| 257,394 | ||||||||
| Biotechnology | 4.4% | ||||||||
| ADMA Biologics, Inc. (*) | 47,936 | 216,671 | ||||||
| Alkermes PLC (*) | 5,180 | 143,693 | ||||||
| Arcturus Therapeutics Holdings, Inc. (*) | 4,456 | 140,498 | ||||||
| Biohaven Ltd. (*) | 283 | 12,112 | ||||||
| Catalyst Pharmaceuticals, Inc. (*) | 12,703 | 213,537 | ||||||
| Deciphera Pharmaceuticals, Inc. (*) | 5,244 | 84,586 | ||||||
| Exelixis, Inc. (*) | 2,286 | 54,841 | ||||||
| Foghorn Therapeutics, Inc. (*) | 4,297 | 27,716 | ||||||
| Ironwood Pharmaceuticals, Inc. (*) | 7,709 | 88,191 | ||||||
| Kamada Ltd. (*) | 3,277 | 20,055 | ||||||
| MiMedx Group, Inc. (*) | 8,883 | 77,904 | ||||||
| Myriad Genetics, Inc. (*) | 4,522 | 86,551 | ||||||
| Neurocrine Biosciences, Inc. (*) | 597 | 78,661 | ||||||
| Prothena Corp. PLC (*) | 2,116 | 76,895 | ||||||
| REGENXBIO, Inc. (*) | 4,426 | 79,447 | ||||||
| Relay Therapeutics, Inc. (*) | 9,962 | 109,682 | ||||||
| United Therapeutics Corp. (*) | 628 | 138,091 | ||||||
| Vanda Pharmaceuticals, Inc. (*) | 2,637 | 11,128 | ||||||
| Xencor, Inc. (*) | 3,463 | 73,519 | ||||||
| Zymeworks, Inc. (*) | 4,086 | 42,454 | ||||||
| 1,776,232 | ||||||||
| Broadline Retail | 0.8% | ||||||||
| Dillard’s, Inc., Class A | 259 | 104,545 | ||||||
| Macy’s, Inc. | 5,594 | 112,551 | ||||||
| Ollie’s Bargain Outlet Holdings, Inc. (*) | 1,287 | 97,671 | ||||||
| 314,767 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 155
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Building Products | 2.6% | ||||||||
| American Woodmark Corp. (*) | 740 | $ | 68,709 | |||||
| Armstrong World Industries, Inc. | 1,007 | 99,008 | ||||||
| AZEK Co., Inc. (*) | 2,430 | 92,947 | ||||||
| Builders FirstSource, Inc. (*) | 2,105 | 351,409 | ||||||
| Owens Corning | 199 | 29,498 | ||||||
| Simpson Manufacturing Co., Inc. | 986 | 195,208 | ||||||
| Tecnoglass, Inc. | 1,087 | 49,687 | ||||||
| UFP Industries, Inc. | 1,304 | 163,717 | ||||||
| 1,050,183 | ||||||||
| Capital Markets | 1.3% | ||||||||
| Affiliated Managers Group, Inc. | 528 | 79,950 | ||||||
| Bain Capital Specialty Finance, Inc. | 4,942 | 74,476 | ||||||
| Carlyle Secured Lending, Inc. | 8,591 | 128,521 | ||||||
| Donnelley Financial Solutions, Inc. (*) | 1,208 | 75,343 | ||||||
| Golub Capital BDC, Inc. | 5,207 | 78,626 | ||||||
| SEI Investments Co. | 1,226 | 77,912 | ||||||
| 514,828 | ||||||||
| Chemicals | 0.4% | ||||||||
| AdvanSix, Inc. | 3,755 | 112,500 | ||||||
| Ingevity Corp. (*) | 781 | 36,879 | ||||||
| 149,379 | ||||||||
| Commercial Services & Supplies | 3.0% | ||||||||
| Brady Corp., Class A | 2,358 | 138,391 | ||||||
| BrightView Holdings, Inc. (*) | 16,703 | 140,639 | ||||||
| CECO Environmental Corp. (*) | 7,388 | 149,829 | ||||||
| Civeo Corp. | 3,974 | 90,806 | ||||||
| Deluxe Corp. | 2,553 | 54,762 | ||||||
| Ennis, Inc. | 1,032 | 22,611 | ||||||
| HNI Corp. | 2,384 | 99,723 | ||||||
| Liquidity Services, Inc. (*) | 6,157 | 105,962 | ||||||
| Matthews International Corp., Class A | 2,268 | 83,122 | ||||||
| MillerKnoll, Inc. | 1,782 | 47,544 | ||||||
The accompanying notes are an integral part of these financial statements.
156 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| OPENLANE, Inc. (*) | 4,899 | $ | 72,554 | |||||
| Steelcase, Inc., Class A | 14,612 | 197,554 | ||||||
| 1,203,497 | ||||||||
| Communications Equipment | 1.3% | ||||||||
| Aviat Networks, Inc. (*) | 1,181 | 38,571 | ||||||
| Calix, Inc. (*) | 2,125 | 92,841 | ||||||
| Extreme Networks, Inc. (*) | 5,631 | 99,331 | ||||||
| Gilat Satellite Networks Ltd. (*) | 7,796 | 47,634 | ||||||
| Harmonic, Inc. (*) | 2,814 | 36,695 | ||||||
| Ituran Location & Control Ltd. | 3,681 | 100,270 | ||||||
| Juniper Networks, Inc. | 3,014 | 88,853 | ||||||
| 504,195 | ||||||||
| Construction & Engineering | 1.6% | ||||||||
| API Group Corp. (*) | 831 | 28,753 | ||||||
| Argan, Inc. | 760 | 35,560 | ||||||
| Bowman Consulting Group Ltd. (*) | 865 | 30,725 | ||||||
| IES Holdings, Inc. (*) | 2,230 | 176,660 | ||||||
| Limbach Holdings, Inc. (*) | 4,627 | 210,390 | ||||||
| Stantec, Inc. | 1,814 | 145,465 | ||||||
| 627,553 | ||||||||
| Construction Materials | 0.3% | ||||||||
| U.S. Lime & Minerals, Inc. | 480 | 110,568 | ||||||
| Consumer Finance | 0.6% | ||||||||
| Enova International, Inc. (*) | 1,992 | 110,277 | ||||||
| PROG Holdings, Inc. (*) | 4,449 | 137,519 | ||||||
| 247,796 | ||||||||
| Consumer Staples Distribution & Retail | 0.4% | ||||||||
| Andersons, Inc. | 1,880 | 108,175 | ||||||
| Ingles Markets, Inc., Class A | 518 | 44,740 | ||||||
| 152,915 | ||||||||
| Containers & Packaging | 1.1% | ||||||||
| Ardagh Metal Packaging SA | 22,979 | 88,239 | ||||||
| Berry Global Group, Inc. | 1,271 | 85,653 | ||||||
| Greif, Inc., Class A | 2,346 | 153,874 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 157
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| O-I Glass, Inc. (*) | 2,880 | $ | 47,175 | |||||
| Pactiv Evergreen, Inc. | 3,809 | 52,221 | ||||||
| 427,162 | ||||||||
| Distributors | 0.2% | ||||||||
| Weyco Group, Inc. | 2,624 | 82,289 | ||||||
| Diversified Consumer Services | 2.4% | ||||||||
| Afya Ltd., Class A (*) | 9,245 | 202,743 | ||||||
| Frontdoor, Inc. (*) | 3,572 | 125,806 | ||||||
| Grand Canyon Education, Inc. (*) | 669 | 88,335 | ||||||
| Laureate Education, Inc. | 11,011 | 150,961 | ||||||
| Lincoln Educational Services Corp. (*) | 4,750 | 47,690 | ||||||
| Perdoceo Education Corp. | 8,532 | 149,822 | ||||||
| Strategic Education, Inc. | 885 | 81,747 | ||||||
| Stride, Inc. (*) | 1,894 | 112,447 | ||||||
| Vitru Ltd. (*) | 1,362 | 21,465 | ||||||
| 981,016 | ||||||||
| Diversified REITs | 0.4% | ||||||||
| Broadstone Net Lease, Inc. | 4,690 | 80,762 | ||||||
| Essential Properties Realty Trust, Inc. | 3,126 | 79,900 | ||||||
| 160,662 | ||||||||
| Diversified Telecommunication Services | 0.4% | ||||||||
| IDT Corp., Class B (*) | 1,691 | 57,646 | ||||||
| Liberty Latin America Ltd., Class C (*) | 11,986 | 87,977 | ||||||
| 145,623 | ||||||||
| Electrical Equipment | 2.6% | ||||||||
| Acuity Brands, Inc. | 659 | 134,983 | ||||||
| Atkore, Inc. (*) | 1,231 | 196,960 | ||||||
| LSI Industries, Inc. | 2,141 | 30,145 | ||||||
| nVent Electric PLC0 | 2,964 | 175,143 | ||||||
| Powell Industries, Inc. | 630 | 55,692 | ||||||
| Preformed Line Products Co. | 1,555 | 208,152 | ||||||
| Regal Rexnord Corp. | 267 | 39,521 | ||||||
The accompanying notes are an integral part of these financial statements.
158 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Sensata Technologies Holding PLC | 2,387 | $ | 89,680 | |||||
| Thermon Group Holdings, Inc. (*) | 3,289 | 107,123 | ||||||
| 1,037,399 | ||||||||
| Electronic Equipment, Instruments & Components | 4.2% | ||||||||
| Advanced Energy Industries, Inc. | 437 | 47,598 | ||||||
| Arrow Electronics, Inc. (*) | 349 | 42,665 | ||||||
| Bel Fuse, Inc. Class B | 1,822 | 121,655 | ||||||
| Celestica, Inc. (*) | 8,759 | 256,464 | ||||||
| Climb Global Solutions, Inc. | 936 | 51,321 | ||||||
| Daktronics, Inc. (*) | 17,213 | 145,966 | ||||||
| ePlus, Inc. (*) | 1,350 | 107,784 | ||||||
| Flex Ltd. (*) | 3,824 | 116,479 | ||||||
| Itron, Inc. (*) | 1,158 | 87,441 | ||||||
| Jabil, Inc. | 1,383 | 176,194 | ||||||
| Kimball Electronics, Inc. (*) | 4,490 | 121,006 | ||||||
| Mirion Technologies, Inc. (*) | 10,185 | 104,396 | ||||||
| nLight, Inc. (*) | 2,974 | 40,149 | ||||||
| Novanta, Inc. (*) | 274 | 46,144 | ||||||
| OSI Systems, Inc. (*) | 597 | 77,043 | ||||||
| Sanmina Corp. (*) | 1,758 | 90,308 | ||||||
| ScanSource, Inc. (*) | 1,496 | 59,257 | ||||||
| 1,691,870 | ||||||||
| Energy Equipment & Services | 0.3% | ||||||||
| North American Construction Group Ltd. | 2,090 | 43,576 | ||||||
| Select Water Solutions, Inc. | 10,949 | 83,103 | ||||||
| 126,679 | ||||||||
| Entertainment | 1.0% | ||||||||
| Cinemark Holdings, Inc. (*) | 4,654 | 65,575 | ||||||
| IMAX Corp. (*) | 7,297 | 109,601 | ||||||
| Lions Gate Entertainment Corp., Class A (*) | 9,069 | 98,852 | ||||||
| Playstudios, Inc. (*) | 21,740 | 58,915 | ||||||
| Vivid Seats, Inc., Class A Class A (*) | 10,700 | 67,624 | ||||||
| 400,567 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 159
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Financial Services | 1.3% | ||||||||
| Cass Information Systems, Inc. | 1,563 | $ | 70,413 | |||||
| EVERTEC, Inc. | 2,006 | 82,126 | ||||||
| Federal Agricultural Mortgage Corp., Class C | 439 | 83,946 | ||||||
| NMI Holdings, Inc., Class A (*) | 5,067 | 150,389 | ||||||
| Voya Financial, Inc. | 1,039 | 75,805 | ||||||
| WEX, Inc. (*) | 401 | 78,014 | ||||||
| 540,693 | ||||||||
| Food Products | 0.2% | ||||||||
| Dole PLC | 7,038 | 86,497 | ||||||
| Ground Transportation | 0.5% | ||||||||
| Knight-Swift Transportation Holdings, Inc. | 746 | 43,007 | ||||||
| Ryder System, Inc. | 1,035 | 119,087 | ||||||
| XPO, Inc. (*) | 476 | 41,693 | ||||||
| 203,787 | ||||||||
| Health Care Equipment & Supplies | 4.1% | ||||||||
| Artivion, Inc. (*) | 1,392 | 24,889 | ||||||
| AtriCure, Inc. (*) | 1,552 | 55,391 | ||||||
| DENTSPLY SIRONA, Inc. | 1,324 | 47,121 | ||||||
| Haemonetics Corp. (*) | 1,685 | 144,084 | ||||||
| ICU Medical, Inc. (*) | 290 | 28,925 | ||||||
| Inmode Ltd. (*) | 2,271 | 50,507 | ||||||
| iRadimed Corp. | 3,779 | 179,389 | ||||||
| Neogen Corp. (*) | 5,063 | 101,817 | ||||||
| OraSure Technologies, Inc. (*) | 19,736 | 161,835 | ||||||
| Penumbra, Inc. (*) | 290 | 72,947 | ||||||
| RxSight, Inc. (*) | 2,936 | 118,380 | ||||||
| Sanara Medtech, Inc. (*) | 1,373 | 56,430 | ||||||
| Semler Scientific, Inc. (*) | 3,110 | 137,742 | ||||||
| Shockwave Medical, Inc. (*) | 404 | 76,986 | ||||||
| Surmodics, Inc. (*) | 1,843 | 66,993 | ||||||
| UFP Technologies, Inc. (*) | 913 | 157,072 | ||||||
| Utah Medical Products, Inc. | 889 | 74,872 | ||||||
| Varex Imaging Corp. (*) | 3,419 | 70,089 | ||||||
| 1,625,469 | ||||||||
The accompanying notes are an integral part of these financial statements.
160 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Health Care Providers & Services | 2.4% | ||||||||
| Addus HomeCare Corp. (*) | 1,388 | $ | 128,876 | |||||
| Alignment Healthcare, Inc. (*) | 5,137 | 44,229 | ||||||
| Aveanna Healthcare Holdings, Inc. (*) | 6,901 | 18,495 | ||||||
| Chemed Corp. | 158 | 92,390 | ||||||
| DocGo, Inc. (*) | 13,257 | 74,107 | ||||||
| NeoGenomics, Inc. (*) | 2,452 | 39,673 | ||||||
| Option Care Health, Inc. (*) | 2,591 | 87,291 | ||||||
| Pediatrix Medical Group, Inc. (*) | 11,712 | 108,922 | ||||||
| PetIQ, Inc. (*) | 8,757 | 172,951 | ||||||
| Premier, Inc., Class A | 2,800 | 62,608 | ||||||
| RadNet, Inc. (*) | 1,233 | 42,871 | ||||||
| Talkspace, Inc. (*) | 29,283 | 74,379 | ||||||
| Viemed Healthcare, Inc. (*) | 4,389 | 34,454 | ||||||
| 981,246 | ||||||||
| Health Care REITs | 0.8% | ||||||||
| Healthpeak Properties, Inc. | 4,211 | 83,378 | ||||||
| LTC Properties, Inc. | 2,171 | 69,732 | ||||||
| Physicians Realty Trust | 5,906 | 78,609 | ||||||
| Sabra Health Care REIT, Inc. | 5,114 | 72,977 | ||||||
| 304,696 | ||||||||
| Health Care Technology | 0.5% | ||||||||
| HealthStream, Inc. | 2,699 | 72,954 | ||||||
| Simulations Plus, Inc. | 2,013 | 90,082 | ||||||
| Teladoc Health, Inc. (*) | 1,629 | 35,105 | ||||||
| 198,141 | ||||||||
| Hotels, Restaurants & Leisure | 1.1% | ||||||||
| Accel Entertainment, Inc. (*) | 13,752 | 141,233 | ||||||
| Aramark | 2,196 | 61,708 | ||||||
| Boyd Gaming Corp. | 1,308 | 81,894 | ||||||
| Denny’s Corp. (*) | 4,023 | 43,770 | ||||||
| Despegar.com Corp. (*) | 7,800 | 73,788 | ||||||
| Krispy Kreme, Inc. | 3,201 | 48,303 | ||||||
| 450,696 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 161
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Household Durables | 4.6% | ||||||||
| Beazer Homes USA, Inc. (*) | 3,626 | $ | 122,522 | |||||
| Cavco Industries, Inc. (*) | 282 | 97,747 | ||||||
| Century Communities, Inc. | 1,228 | 111,920 | ||||||
| Green Brick Partners, Inc. (*) | 1,738 | 90,272 | ||||||
| Helen of Troy Ltd. (*) | 366 | 44,216 | ||||||
| Hooker Furnishings Corp. | 2,165 | 56,463 | ||||||
| Hovnanian Enterprises, Inc., Class A (*) | 1,080 | 168,070 | ||||||
| KB Home | 4,238 | 264,705 | ||||||
| Landsea Homes Corp. (*) | 9,394 | 123,437 | ||||||
| M/I Homes, Inc. (*) | 2,316 | 319,006 | ||||||
| Meritage Homes Corp. | 1,008 | 175,594 | ||||||
| Skyline Champion Corp. (*) | 1,345 | 99,880 | ||||||
| Taylor Morrison Home Corp. (*) | 2,995 | 159,783 | ||||||
| 1,833,615 | ||||||||
| Household Products | 0.7% | ||||||||
| Central Garden & Pet Co., Class A (*) | 2,224 | 97,945 | ||||||
| Energizer Holdings, Inc. | 2,728 | 86,423 | ||||||
| Oil-Dri Corp. of America | 1,216 | 81,569 | ||||||
| 265,937 | ||||||||
| Independent Power & Renewable Electricity Producers | 0.5% | ||||||||
| Brookfield Renewable Corp., Class A | 3,164 | 91,091 | ||||||
| ReNew Energy Global PLC, Class A (*) | 12,386 | 94,877 | ||||||
| 185,968 | ||||||||
| Industrial REITs | 1.2% | ||||||||
| Americold Realty Trust, Inc. | 2,207 | 66,806 | ||||||
| EastGroup Properties, Inc. | 259 | 47,537 | ||||||
| First Industrial Realty Trust, Inc. | 1,327 | 69,893 | ||||||
| LXP Industrial Trust | 6,845 | 67,902 | ||||||
| Rexford Industrial Realty, Inc. | 1,558 | 87,404 | ||||||
| STAG Industrial, Inc. | 1,991 | 78,167 | ||||||
| Terreno Realty Corp. | 1,151 | 72,133 | ||||||
| 489,842 | ||||||||
The accompanying notes are an integral part of these financial statements.
162 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Insurance | 2.1% | ||||||||
| Assurant, Inc. | 437 | $ | 73,630 | |||||
| Axis Capital Holdings Ltd. | 1,279 | 70,818 | ||||||
| CNO Financial Group, Inc. | 2,863 | 79,878 | ||||||
| Enstar Group Ltd. (*) | 301 | 88,599 | ||||||
| International General Insurance Holdings Ltd. | 3,504 | 45,132 | ||||||
| Lincoln National Corp. | 2,825 | 76,190 | ||||||
| Palomar Holdings, Inc. (*) | 1,356 | 75,258 | ||||||
| Primerica, Inc. | 400 | 82,304 | ||||||
| Reinsurance Group of America, Inc. | 533 | 86,229 | ||||||
| Unum Group | 1,628 | 73,618 | ||||||
| White Mountains Insurance Group Ltd. | 48 | 72,241 | ||||||
| 823,897 | ||||||||
| Interactive Media & Services | 1.6% | ||||||||
| Cargurus, Inc. (*) | 4,024 | 97,220 | ||||||
| Cars.com, Inc. (*) | 4,047 | 76,772 | ||||||
| Grindr, Inc. (*) | 11,965 | 105,053 | ||||||
| IAC, Inc. (*) | 607 | 31,795 | ||||||
| Match Group, Inc. (*) | 2,541 | 92,746 | ||||||
| VTEX, Class A (*) | 12,240 | 84,211 | ||||||
| Yelp, Inc. (*) | 2,819 | 133,451 | ||||||
| 621,248 | ||||||||
| IT Services | 1.5% | ||||||||
| Amdocs Ltd. | 926 | 81,386 | ||||||
| BigBear.ai Holdings, Inc. (*) | 24,889 | 53,263 | ||||||
| BigCommerce Holdings, Inc., Series 1 (*) | 3,703 | 36,030 | ||||||
| Hackett Group, Inc. | 4,670 | 106,336 | ||||||
| Okta, Inc. (*) | 1,165 | 105,467 | ||||||
| Rackspace Technology, Inc. (*) | 16,403 | 32,806 | ||||||
| Squarespace, Inc., Class A (*) | 2,632 | 86,882 | ||||||
| Unisys Corp. (*) | 18,519 | 104,077 | ||||||
| 606,247 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 163
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Leisure Products | 2.1% | ||||||||
| BRP, Inc. | 1,827 | $ | 130,978 | |||||
| Brunswick Corp. | 1,460 | 141,255 | ||||||
| Escalade, Inc. | 1,357 | 27,262 | ||||||
| JAKKS Pacific, Inc. (*) | 4,208 | 149,594 | ||||||
| Malibu Boats, Inc., Class A (*) | 1,596 | 87,493 | ||||||
| Marine Products Corp. | 4,627 | 52,748 | ||||||
| MasterCraft Boat Holdings, Inc. (*) | 4,450 | 100,748 | ||||||
| Polaris, Inc. | 1,229 | 116,472 | ||||||
| Solo Brands, Inc., Class A (*) | 4,315 | 26,580 | ||||||
| 833,130 | ||||||||
| Life Sciences Tools & Services | 1.4% | ||||||||
| Bruker Corp. | 2,042 | 150,046 | ||||||
| Medpace Holdings, Inc. (*) | 988 | 302,852 | ||||||
| Mesa Laboratories, Inc. | 1,003 | 105,084 | ||||||
| 557,982 | ||||||||
| Machinery | 3.1% | ||||||||
| AGCO Corp. | 713 | 86,565 | ||||||
| Alamo Group, Inc. | 679 | 142,719 | ||||||
| Allison Transmission Holdings, Inc. | 3,417 | 198,698 | ||||||
| Federal Signal Corp. | 1,208 | 92,702 | ||||||
| Flowserve Corp. | 1,979 | 81,574 | ||||||
| Hyster-Yale Materials Handling, Inc. | 683 | 42,476 | ||||||
| Mueller Industries, Inc. | 4,024 | 189,732 | ||||||
| Mueller Water Products, Inc., Class A | 6,293 | 90,619 | ||||||
| REV Group, Inc. | 8,498 | 154,409 | ||||||
| Tennant Co. | 1,394 | 129,210 | ||||||
| Terex Corp. | 665 | 38,211 | ||||||
| 1,246,915 | ||||||||
The accompanying notes are an integral part of these financial statements.
164 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Marine Transportation | 0.6% | ||||||||
| Danaos Corp. | 2,267 | $ | 167,894 | |||||
| Global Ship Lease, Inc., Class A | 2,243 | 44,456 | ||||||
| Grindrod Shipping Holdings Ltd. | 5,261 | 47,349 | ||||||
| 259,699 | ||||||||
| Media | 1.2% | ||||||||
| Daily Journal Corp. (*) | 263 | 89,636 | ||||||
| Emerald Holding, Inc. (*) | 9,697 | 57,988 | ||||||
| Gambling.com Group Ltd. (*) | 6,619 | 64,535 | ||||||
| Gannett Co., Inc. (*) | 28,004 | 64,409 | ||||||
| John Wiley & Sons, Inc. Class A | 1,007 | 31,962 | ||||||
| Scholastic Corp. | 1,210 | 45,617 | ||||||
| Sinclair, Inc. | 2,603 | 33,917 | ||||||
| Stagwell, Inc. (*) | 4,773 | 31,645 | ||||||
| TEGNA, Inc. | 4,969 | 76,026 | ||||||
| Urban One, Inc. (*) | 274 | 1,104 | ||||||
| 496,839 | ||||||||
| Mortgage REITs | 0.6% | ||||||||
| Chimera Investment Corp. | 15,899 | 79,336 | ||||||
| Franklin BSP Realty Trust, Inc. | 5,851 | 79,047 | ||||||
| PennyMac Mortgage Investment Trust | 6,424 | 96,039 | ||||||
| 254,422 | ||||||||
| Office REITs | 0.3% | ||||||||
| COPT Defense Properties | 2,543 | 65,177 | ||||||
| Postal Realty Trust, Inc., Class A | 4,045 | 58,895 | ||||||
| 124,072 | ||||||||
| Oil, Gas & Consumable Fuels | 0.3% | ||||||||
| Sabine Royalty Trust | 736 | 49,945 | ||||||
| San Juan Basin Royalty Trust | 12,116 | 61,549 | ||||||
| 111,494 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 165
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Paper & Forest Products | 0.3% | ||||||||
| Clearwater Paper Corp. (*) | 2,144 | $ | 77,441 | |||||
| Mercer International, Inc. | 3,555 | 33,702 | ||||||
| 111,143 | ||||||||
| Personal Care Products | 0.3% | ||||||||
| elf Beauty, Inc. (*) | 634 | 91,512 | ||||||
| Nature’s Sunshine Products, Inc. (*) | 1,321 | 22,840 | ||||||
| 114,352 | ||||||||
| Pharmaceuticals | 0.3% | ||||||||
| Amphastar Pharmaceuticals, Inc. (*) | 1,921 | 118,814 | ||||||
| Professional Services | 5.6% | ||||||||
| ASGN, Inc. (*) | 1,294 | 124,444 | ||||||
| Barrett Business Services, Inc. | 1,376 | 159,341 | ||||||
| CBIZ, Inc. (*) | 1,449 | 90,693 | ||||||
| Clarivate PLC (*) | 9,098 | 84,247 | ||||||
| CRA International, Inc. | 1,328 | 131,273 | ||||||
| CSG Systems International, Inc. | 2,360 | 125,576 | ||||||
| ExlService Holdings, Inc. (*) | 2,405 | 74,194 | ||||||
| First Advantage Corp. | 5,468 | 90,605 | ||||||
| Franklin Covey Co. (*) | 2,143 | 93,285 | ||||||
| FTI Consulting, Inc. (*) | 479 | 95,393 | ||||||
| Genpact Ltd. | 814 | 28,254 | ||||||
| Heidrick & Struggles International, Inc. | 4,545 | 134,214 | ||||||
| HireRight Holdings Corp. (*) | 8,214 | 110,478 | ||||||
| Huron Consulting Group, Inc. (*) | 1,291 | 132,715 | ||||||
| IBEX Holdings Ltd. (*) | 2,175 | 41,347 | ||||||
| ICF International, Inc. | 337 | 45,188 | ||||||
| Innodata, Inc. (*) | 4,123 | 33,561 | ||||||
| Kforce, Inc. | 1,252 | 84,585 | ||||||
| Korn Ferry | 1,764 | 104,693 | ||||||
| Legalzoom.com, Inc. (*) | 7,669 | 86,660 | ||||||
| Paycom Software, Inc. | 475 | 98,192 | ||||||
| Resources Connection, Inc. | 7,323 | 103,767 | ||||||
| Science Applications International Corp. | 1,005 | 124,942 | ||||||
The accompanying notes are an integral part of these financial statements.
166 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| TriNet Group, Inc. (*) | 93 | $ | 11,060 | |||||
| Willdan Group, Inc. (*) | 2,056 | 44,204 | ||||||
| 2,252,911 | ||||||||
| Real Estate Management & Development | 0.4% | ||||||||
| FirstService Corp. | 485 | 78,613 | ||||||
| FRP Holdings, Inc. (*) | 710 | 44,645 | ||||||
| RMR Group, Inc., Class A | 1,851 | 52,254 | ||||||
| 175,512 | ||||||||
| Residential REITs | 0.5% | ||||||||
| Apartment Income REIT Corp. | 1,849 | 64,216 | ||||||
| Camden Property Trust | 768 | 76,254 | ||||||
| Elme Communities | 3,928 | 57,349 | ||||||
| 197,819 | ||||||||
| Retail REITs | 1.1% | ||||||||
| Agree Realty Corp. | 1,213 | 76,358 | ||||||
| Federal Realty Investment Trust | 638 | 65,746 | ||||||
| Kite Realty Group Trust | 3,187 | 72,855 | ||||||
| Phillips Edison & Co., Inc. | 2,066 | 75,368 | ||||||
| Spirit Realty Capital, Inc. | 1,640 | 71,651 | ||||||
| Tanger, Inc. | 3,144 | 87,152 | ||||||
| 449,130 | ||||||||
| Semiconductors & Semiconductor Equipment | 2.0% | ||||||||
| Axcelis Technologies, Inc. (*) | 2,045 | 265,216 | ||||||
| Cirrus Logic, Inc. (*) | 1,689 | 140,508 | ||||||
| Diodes, Inc. (*) | 736 | 59,263 | ||||||
| Lattice Semiconductor Corp. (*) | 1,343 | 92,653 | ||||||
| NVE Corp. | 602 | 47,215 | ||||||
| Photronics, Inc. (*) | 6,218 | 195,059 | ||||||
| 799,914 | ||||||||
| Software | 11.6% | ||||||||
| A10 Networks, Inc. | 4,394 | 57,869 | ||||||
| ACI Worldwide, Inc. (*) | 3,119 | 95,441 | ||||||
| Agilysys, Inc. (*) | 1,030 | 87,365 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 167
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| Alarm.com Holdings, Inc. (*) | 620 | $ | 40,064 | |||||
| Alkami Technology, Inc. (*) | 5,249 | 127,288 | ||||||
| Appfolio, Inc., Class A (*) | 395 | 68,430 | ||||||
| Blackbaud, Inc. (*) | 1,034 | 89,648 | ||||||
| Blackline, Inc. (*) | 1,810 | 113,016 | ||||||
| Cellebrite DI Ltd. (*) | 15,093 | 130,705 | ||||||
| Clearwater Analytics Holdings, Inc., Class A (*) | 4,886 | 97,867 | ||||||
| CommVault Systems, Inc. (*) | 1,935 | 154,510 | ||||||
| Confluent, Inc., Class A (*) | 3,277 | 76,682 | ||||||
| Digimarc Corp. (*) | 2,621 | 94,671 | ||||||
| Docebo, Inc. (*) | 932 | 45,090 | ||||||
| DocuSign, Inc. (*) | 1,896 | 112,717 | ||||||
| eGain Corp. (*) | 9,382 | 78,152 | ||||||
| Elastic NV (*) | 1,584 | 178,517 | ||||||
| EngageSmart, Inc. (*) | 3,712 | 85,005 | ||||||
| Five9, Inc. (*) | 705 | 55,477 | ||||||
| Freshworks, Inc., Class A (*) | 5,604 | 131,638 | ||||||
| Gitlab, Inc.,Class A (*) | 1,158 | 72,908 | ||||||
| Instructure Holdings, Inc. (*) | 1,574 | 42,514 | ||||||
| InterDigital, Inc. | 1,074 | 116,572 | ||||||
| JFrog Ltd. (*) | 1,704 | 58,975 | ||||||
| Karooooo Ltd. | 1,116 | 27,119 | ||||||
| Magic Software Enterprises Ltd. | 1,725 | 16,715 | ||||||
| Manhattan Associates, Inc. (*) | 419 | 90,219 | ||||||
| MeridianLink, Inc. (*) | 2,156 | 53,404 | ||||||
| Mitek Systems, Inc. (*) | 7,830 | 102,103 | ||||||
| Monday.com Ltd. (*) | 693 | 130,152 | ||||||
| N-able, Inc. (*) | 6,996 | 92,697 | ||||||
| nCino, Inc. (*) | 1,428 | 48,024 | ||||||
| Open Text Corp. | 3,014 | 126,648 | ||||||
| Procore Technologies, Inc. (*) | 1,237 | 85,625 | ||||||
| Progress Software Corp. | 2,514 | 136,510 | ||||||
| Qualys, Inc. (*) | 728 | 142,892 | ||||||
| Red Violet, Inc. (*) | 701 | 13,999 | ||||||
| Rimini Street, Inc. (*) | 26,657 | 87,168 | ||||||
| RingCentral, Inc., Class A (*) | 2,835 | 96,248 | ||||||
| Samsara, Inc. Class A (*) | 6,368 | 212,564 | ||||||
| SEMrush Holdings, Inc., Class A (*) | 3,588 | 49,012 | ||||||
The accompanying notes are an integral part of these financial statements.
168 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| SentinelOne, Inc. Class A (*) | 5,019 | $ | 137,721 | |||||
| Smartsheet, Inc., Class A (*) | 1,945 | 93,010 | ||||||
| Sprinklr, Inc., Class A (*) | 9,970 | 120,039 | ||||||
| SPS Commerce, Inc. (*) | 979 | 189,769 | ||||||
| Tenable Holdings, Inc. (*) | 2,212 | 101,885 | ||||||
| Teradata Corp. (*) | 2,795 | 121,611 | ||||||
| Weave Communications, Inc. (*) | 7,477 | 85,761 | ||||||
| Workiva, Inc. (*) | 853 | 86,605 | ||||||
| 4,658,621 | ||||||||
| Specialized REITs | 0.2% | ||||||||
| Extra Space Storage, Inc. | 576 | 92,350 | ||||||
| Specialty Retail | 2.8% | ||||||||
| 1-800-Flowers.com, Inc. Class A (*) | 8,884 | 95,770 | ||||||
| Asbury Automotive Group, Inc. (*) | 326 | 73,340 | ||||||
| AutoNation, Inc. (*) | 698 | 104,826 | ||||||
| Betterware de Mexico SAPI de CV | 4,502 | 62,758 | ||||||
| Boot Barn Holdings, Inc. (*) | 613 | 47,054 | ||||||
| Buckle, Inc. | 2,283 | 108,488 | ||||||
| Build-A-Bear Workshop, Inc. | 3,658 | 84,097 | ||||||
| Group 1 Automotive, Inc. | 375 | 114,278 | ||||||
| Lithia Motors, Inc. | 137 | 45,111 | ||||||
| Murphy USA, Inc. | 444 | 158,313 | ||||||
| ODP Corp. (*) | 761 | 42,844 | ||||||
| Signet Jewelers Ltd. | 1,238 | 132,788 | ||||||
| Winmark Corp. | 113 | 47,183 | ||||||
| 1,116,850 | ||||||||
| Technology Hardware, Storage & Peripherals | 1.2% | ||||||||
| Eastman Kodak Co. (*) | 19,668 | 76,705 | ||||||
| Super Micro Computer, Inc. (*) | 1,064 | 302,453 | ||||||
| Xerox Holdings Corp. | 4,660 | 85,418 | ||||||
| 464,576 | ||||||||
| Textiles, Apparel & Luxury Goods | 2.2% | ||||||||
| Carter’s, Inc. | 1,133 | 84,850 | ||||||
| Crocs, Inc. (*) | 658 | 61,464 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 169
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (continued) | ||||||||
| G-III Apparel Group Ltd. (*) | 2,765 | $ | 93,955 | |||||
| Gildan Activewear, Inc. | 3,517 | 116,272 | ||||||
| Kontoor Brands, Inc. | 1,790 | 111,732 | ||||||
| Movado Group, Inc. | 2,808 | 84,661 | ||||||
| Oxford Industries, Inc. | 1,418 | 141,800 | ||||||
| PVH Corp. | 772 | 94,276 | ||||||
| Tapestry, Inc. | 2,753 | 101,338 | ||||||
| 890,348 | ||||||||
| Trading Companies & Distributors | 2.8% | ||||||||
| Applied Industrial Technologies, Inc. | 818 | 141,260 | ||||||
| Boise Cascade Co. | 1,598 | 206,717 | ||||||
| Distribution Solutions Group, Inc. (*) | 3,177 | 100,266 | ||||||
| GATX Corp. | 724 | 87,039 | ||||||
| GMS, Inc. (*) | 65 | 5,358 | ||||||
| Karat Packaging, Inc. | 3,494 | 86,826 | ||||||
| McGrath RentCorp | 1,244 | 148,807 | ||||||
| MRC Global, Inc. (*) | 8,354 | 91,978 | ||||||
| MSC Industrial Direct Co., Inc. Class A | 975 | 98,729 | ||||||
| NOW, Inc. (*) | 3,930 | 44,488 | ||||||
| Titan Machinery, Inc. (*) | 3,705 | 107,000 | ||||||
| 1,118,468 | ||||||||
| Wireless Telecommunication Services | 0.1% | ||||||||
| Spok Holdings, Inc. | 3,543 | 54,846 | ||||||
| Total Common Stocks (Cost $33,077,536) | 39,687,494 | |||||||
| Rights | 0.0% | ||||||||
| Biotechnology | 0.0% | ||||||||
| Adamas Pharmaceuticals, Inc. CVR | ||||||||
| Expires 2024 (*), (¢) | 1,139 | 0 | ||||||
| Expires 2025 (*), (¢) | 1,139 | 0 | ||||||
| Epizyme, Inc. CVR Expires 2499 (*), (¢) | 41,136 | 823 | ||||||
The accompanying notes are an integral part of these financial statements.
170 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Systematic Small Cap Equity Portfolio (concluded) | ||||||||
| Radius Health, Inc. CVR Expires 2499 (*), (¢) | 7,231 | $ | 578 | |||||
| Resolute Forest Products, Inc. CVR Expires 2499 (*), (¢) | 10,077 | 0 | ||||||
| (Cost $1,538) | 1,401 | |||||||
| Short-Term Investments | 1.1% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $423,904) | 423,904 | 423,904 | ||||||
| Total Investments | 100.2% (Cost $33,502,978) | $ | 40,112,799 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.2)% | (82,587 | ) | ||||||
| Net Assets | 100.0% | $ | 40,030,212 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 171
The Lazard Funds, Inc. Notes to Portfolios of Investments
December 31, 2023
| (*) | Non-income producing security. |
| (¢) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
| (‡) | Security valued using Level 2 inputs, based on reference to a similar security which was trading on an active market, under GAAP hierarchy, see Note 8 in the Notes to Financial Statements. |
| (#) | Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2023, these securities amounted to 0.6% of net assets of Lazard Emerging Markets Equity Advantage Portfolio. |
| (^) | Refer to Note 5 in the Notes to Financial Statements for further details related to holdings of 5% voting securities of portfolio companies. |
| (») | The portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts. |
Security Abbreviations:
| ADR | — | American Depositary Receipt | ||
| CVR | — | Contingent Value Rights | ||
| GDR | — | Global Depositary Receipt | ||
| NVDR | — | Non-Voting Depositary Receipt | ||
| PJSC | — | Public Joint Stock Company | ||
| REIT | — | Real Estate Investment Trust |
Currency Abbreviations:
| AUD | — | Australian Dollar | ||
| CAD | — | Canadian Dollar | ||
| CHF | — | Swiss Franc | ||
| EUR | — | Euro |
| GBP | — | British Pound Sterling | ||
| HKD | — | Hong-Kong Dollar | ||
| USD | — | United States Dollar |
Counterparty Abbreviations:
| BNP | — | BNP Paribas SA | ||
| CAN | — | Canadian Imperial Bank of Commerce | ||
| CIT | — | Citibank N.A. | ||
| HSB | — | HSBC Bank USA N.A. |
| MEL | — | Bank of New York Mellon Corp. | ||
| MSC | — | Morgan Stanley & Co. | ||
| RBC | — | Royal Bank of Canada | ||
| SCB | — | Standard Chartered Bank | ||
| SSB | — | State Street Bank & Trust Co. |
The accompanying notes are an integral part of these financial statements.
172 Annual Report
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Annual Report 173
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country:
| Industry† | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio | |||||||||||||
| Common & Preferred Stocks | |||||||||||||||||
| Aerospace & Defense | — | % | — | % | 1.2 | % | — | % | |||||||||
| Air Freight & Logistics | 3.4 | — | 0.4 | — | |||||||||||||
| Automobile Components | 1.3 | — | 0.4 | 1.9 | |||||||||||||
| Automobiles | 1.6 | 1.0 | 3.7 | 0.8 | |||||||||||||
| Banks | 21.2 | 18.9 | 15.9 | 20.9 | |||||||||||||
| Beverages | 3.1 | 2.4 | 2.2 | — | |||||||||||||
| Biotechnology | — | 1.0 | — | — | |||||||||||||
| Broadline Retail | 3.3 | 5.4 | 5.5 | 1.4 | |||||||||||||
| Building Products | — | — | 0.3 | — | |||||||||||||
| Capital Markets | — | 2.0 | 0.5 | — | |||||||||||||
| Chemicals | 0.9 | 1.7 | 1.5 | 1.2 | |||||||||||||
| Commercial Services & Supplies | — | — | — | — | |||||||||||||
| Communications Equipment | 0.9 | — | 0.9 | — | |||||||||||||
| Construction & Engineering | — | 1.7 | 0.4 | — | |||||||||||||
| Construction Materials | — | — | 0.4 | 1.0 | |||||||||||||
| Consumer Finance | 1.3 | — | 0.7 | — | |||||||||||||
| Consumer Staples Distributions & Retail | — | 1.9 | 0.5 | — | |||||||||||||
| Containers & Packaging | — | — | 0.1 | — | |||||||||||||
| Diversified Consumer Services | — | — | 0.4 | — | |||||||||||||
| Diversified REITs | — | — | 0.3 | — | |||||||||||||
| Diversified Telecommunication Services | — | 0.9 | 2.4 | 3.9 | |||||||||||||
| Electric Utilities | — | 0.7 | 0.4 | — | |||||||||||||
| Electrical Equipment | 2.8 | — | 1.3 | 0.9 | |||||||||||||
| Electronic Equipment, Instruments & Components | 4.0 | — | 2.9 | 2.1 | |||||||||||||
| Energy Equipment & Services | 0.8 | 0.8 | — | — | |||||||||||||
| Entertainment | — | 1.0 | 2.0 | — | |||||||||||||
| Financial Services | 2.3 | 1.6 | 1.8 | — | |||||||||||||
| Food Products | — | — | 1.6 | 2.0 | |||||||||||||
| Gas Utilities | — | — | 0.7 | 0.7 | |||||||||||||
| Ground Transportation | 2.0 | — | — | — | |||||||||||||
| Health Care Equipment & Supplies | — | 1.0 | 0.2 | — | |||||||||||||
| Health Care Providers & Services | — | — | 0.9 | 2.8 | |||||||||||||
| Hotels, Restaurants & Leisure | 2.7 | 4.2 | 1.8 | 0.7 | |||||||||||||
| Household Durables | 0.9 | 2.1 | 0.7 | 3.5 | |||||||||||||
| Household Products | — | 0.7 | 0.6 | 1.2 | |||||||||||||
| Independent Power & Renewable Electricity Producers | — | — | 0.5 | 0.9 | |||||||||||||
| Industrial Conglomerates | — | 1.7 | 0.4 | 2.3 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
174 Annual Report
| Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | Lazard Global Listed Infrastructure Portfolio | Lazard Global Strategic Equity Portfolio | Lazard International Equity Advantage Portfolio | |||||||||||||||
| — | % | 1.1 | % | — | % | 1.4 | % | 0.7 | % | ||||||||||
| — | — | — | — | 0.2 | |||||||||||||||
| — | — | — | 2.5 | 0.3 | |||||||||||||||
| — | — | — | — | 6.6 | |||||||||||||||
| — | 5.7 | — | 1.9 | 10.5 | |||||||||||||||
| — | 5.7 | — | 3.6 | 0.6 | |||||||||||||||
| — | — | — | 0.8 | — | |||||||||||||||
| 6.0 | 4.8 | — | — | 3.5 | |||||||||||||||
| — | 0.7 | — | — | 1.1 | |||||||||||||||
| — | 6.7 | — | 7.1 | 2.5 | |||||||||||||||
| 1.5 | — | — | 1.5 | 1.1 | |||||||||||||||
| 2.1 | — | — | — | 1.3 | |||||||||||||||
| 2.0 | 1.9 | — | — | 0.4 | |||||||||||||||
| 3.0 | — | 13.2 | — | 2.0 | |||||||||||||||
| — | — | — | — | 0.3 | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| — | 0.7 | — | — | 1.3 | |||||||||||||||
| — | 0.9 | — | — | 0.3 | |||||||||||||||
| 6.0 | — | — | — | 0.1 | |||||||||||||||
| — | — | — | — | 0.1 | |||||||||||||||
| — | — | — | — | 0.4 | |||||||||||||||
| — | — | 21.4 | 1.2 | 1.1 | |||||||||||||||
| — | 4.0 | — | 2.3 | — | |||||||||||||||
| — | 2.6 | — | 2.0 | 1.2 | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| — | 1.7 | — | 2.2 | 1.5 | |||||||||||||||
| 11.7 | 2.2 | — | 3.2 | 0.7 | |||||||||||||||
| 5.6 | — | — | — | 0.5 | |||||||||||||||
| 2.0 | — | 7.3 | — | 0.3 | |||||||||||||||
| 2.0 | — | 18 | 1.4 | 0.1 | |||||||||||||||
| 4.8 | — | — | 1.5 | 0.4 | |||||||||||||||
| 14.3 | 1.4 | — | 2.9 | 1.1 | |||||||||||||||
| 4.6 | 1.4 | — | — | 2.4 | |||||||||||||||
| — | 1.2 | — | — | 0.2 | |||||||||||||||
| 3.1 | 1.5 | — | — | 0.2 | |||||||||||||||
| — | — | 0.7 | — | 0.7 | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
Annual Report 175
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country (continued):
| Industry† | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio | |||||||||||||
| Insurance | 1.2 | % | 2.4 | % | 2.6 | % | 5.1 | % | |||||||||
| Interactive Media & Services | 5.1 | 4.2 | 4.7 | 0.8 | |||||||||||||
| IT Services | 2.2 | 1.7 | 2.9 | 1.8 | |||||||||||||
| Leisure Products | — | — | — | — | |||||||||||||
| Life Sciences Tools & Services | — | — | — | — | |||||||||||||
| Machinery | 4.2 | 2.6 | 1.5 | 1.9 | |||||||||||||
| Marine Transportation | — | — | 0.4 | — | |||||||||||||
| Media | — | — | — | — | |||||||||||||
| Metals & Mining | — | 3.2 | 3.1 | 4.3 | |||||||||||||
| Multi-Utilities | — | — | — | — | |||||||||||||
| Oil, Gas & Consumable Fuels | 3.9 | 7.2 | 4.8 | 8.3 | |||||||||||||
| Paper & Forest Products | 0.7 | — | 0.4 | — | |||||||||||||
| Passenger Airlines | — | — | 0.4 | — | |||||||||||||
| Personal Care Products | — | 1.4 | — | 2.6 | |||||||||||||
| Pharmaceuticals | 2.6 | 1.0 | 4.2 | 0.9 | |||||||||||||
| Professional Services | — | — | 0.1 | — | |||||||||||||
| Real Estate Management & Development | — | 0.2 | 1.0 | 0.5 | |||||||||||||
| Retail REITs | — | — | — | — | |||||||||||||
| Semiconductors & Semiconductor Equipment | 12.4 | 14.2 | 10.5 | 12.5 | |||||||||||||
| Software | 0.9 | — | 0.4 | — | |||||||||||||
| Specialty Retail | 3.2 | 0.6 | — | 1.2 | |||||||||||||
| Technology Hardware, Storage & Peripherals | 7.3 | 4.2 | 6.2 | 4.4 | |||||||||||||
| Textiles, Apparel & Luxury Goods | 1.1 | 1.4 | 0.1 | — | |||||||||||||
| Tobacco | — | 1.0 | — | 0.7 | |||||||||||||
| Trading Companies & Distributors | — | — | 0.2 | — | |||||||||||||
| Transportation Infrastructure | 1.2 | 2.8 | 0.7 | 1.5 | |||||||||||||
| Water Utilities | — | — | 0.6 | — | |||||||||||||
| Wireless Telecommunication Services | — | 0.6 | 0.6 | 2.2 | |||||||||||||
| Subtotal | 98.5 | 99.4 | 98.9 | 96.9 | |||||||||||||
| Warrants | — | — | — | — | |||||||||||||
| Short-Term Investments | 1.8 | 1.1 | 1.5 | 3.7 | |||||||||||||
| Total Investments | 100.3 | % | 100.5 | % | 100.4 | % | 100.6 | % | |||||||||
| † | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
176 Annual Report
| Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | Lazard Global Listed Infrastructure Portfolio | Lazard Global Strategic Equity Portfolio | Lazard International Equity Advantage Portfolio | |||||||||||||||
| — | % | 2.7 | % | — | % | 7.4 | % | 5.2 | % | ||||||||||
| 0.9 | 4.9 | — | 5.3 | 1.5 | |||||||||||||||
| 4.1 | 2.7 | — | 3.1 | 2.3 | |||||||||||||||
| — | 1.3 | — | — | 0.3 | |||||||||||||||
| — | 6.0 | — | 7.4 | — | |||||||||||||||
| 4.8 | 2.0 | — | — | 2.4 | |||||||||||||||
| — | — | — | — | 0.7 | |||||||||||||||
| 9.1 | 0.8 | 2.3 | 0.6 | 0.3 | |||||||||||||||
| — | — | — | — | 3.1 | |||||||||||||||
| 4.8 | — | 12.7 | — | 0.6 | |||||||||||||||
| — | — | — | — | 2.9 | |||||||||||||||
| — | — | — | — | 0.1 | |||||||||||||||
| — | — | — | 1.0 | 1.2 | |||||||||||||||
| — | 2.6 | — | 1.0 | 1.0 | |||||||||||||||
| — | 4.1 | — | 6.0 | 11 | |||||||||||||||
| — | 8.6 | — | 5.1 | 1.7 | |||||||||||||||
| — | — | — | — | 1.4 | |||||||||||||||
| — | — | — | — | 1.0 | |||||||||||||||
| — | 6.0 | — | 13.7 | 8.1 | |||||||||||||||
| — | 6.3 | — | 7.9 | 2.4 | |||||||||||||||
| — | 1.2 | — | 1.6 | 1.0 | |||||||||||||||
| — | — | — | — | 3.0 | |||||||||||||||
| — | 3.7 | — | — | 0.3 | |||||||||||||||
| — | — | — | — | 2.2 | |||||||||||||||
| — | 1.4 | — | 3.8 | 1.5 | |||||||||||||||
| — | — | 10.2 | — | 0.2 | |||||||||||||||
| 5.8 | — | 10.9 | — | 0.1 | |||||||||||||||
| — | — | — | — | 0.7 | |||||||||||||||
| 98.2 | 98.5 | 96.7 | 99.4 | 99.9 | |||||||||||||||
| — | — | — | — | 0.0 | |||||||||||||||
| 1.5 | 1.4 | 3.2 | 1.0 | — | |||||||||||||||
| 99.7 | % | 99.9 | % | 99.9 | % | 100.4 | % | 99.9 | % | ||||||||||
Annual Report 177
Portfolio holdings by industry (as a percentage of net assets) (continued):
| Industry† | Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | Lazard International Quality Growth Portfolio | Lazard International Small Cap Equity Portfolio | |||||||||||||
| Common & Preferred Stocks | |||||||||||||||||
| Aerospace & Defense | 5.0 | % | 4.2 | % | — | % | 1.0 | % | |||||||||
| Automobile Components | 1.7 | 1.5 | — | 3.6 | |||||||||||||
| Automobiles | 1.4 | 0.8 | — | — | |||||||||||||
| Banks | 7.4 | 11.7 | 5.3 | 3.4 | |||||||||||||
| Beverages | 4.8 | 3.4 | 4.1 | 4.3 | |||||||||||||
| Biotechnology | — | — | 2.3 | — | |||||||||||||
| Broadline Retail | 1.1 | 2.0 | 3.0 | — | |||||||||||||
| Building Products | 1.3 | 1.3 | 2.5 | 3.5 | |||||||||||||
| Capital Markets | 3.3 | 0.9 | 6.6 | 2.8 | |||||||||||||
| Chemicals | 5.5 | 6.2 | — | 4.8 | |||||||||||||
| Commercial Services & Supplies | — | — | — | — | |||||||||||||
| Communications Equipment | — | — | — | — | |||||||||||||
| Construction & Engineering | — | — | — | — | |||||||||||||
| Construction Materials | — | — | — | — | |||||||||||||
| Consumer Finance | — | — | — | — | |||||||||||||
| Consumer Staples Distributions & Retail | 1.8 | — | 2.7 | 1.1 | |||||||||||||
| Containers & Packaging | — | — | — | — | |||||||||||||
| Distributors | — | — | — | — | |||||||||||||
| Diversified Consumer Services | — | — | — | — | |||||||||||||
| Diversified REITs | — | — | — | — | |||||||||||||
| Diversified Telecommunication Services | 1.4 | 1.1 | — | — | |||||||||||||
| Electric Utilities | 1.1 | — | — | — | |||||||||||||
| Electrical Equipment | 2.1 | 3.8 | 2.1 | — | |||||||||||||
| Electronic Equipment, Instruments & Components | 0.8 | — | 5.2 | 3.0 | |||||||||||||
| Energy Equipment & Services | — | — | — | 0.9 | |||||||||||||
| Entertainment | 1.2 | 1.1 | 3.9 | 0.9 | |||||||||||||
| Financial Services | — | — | — | 2.7 | |||||||||||||
| Food Products | — | — | — | 2.3 | |||||||||||||
| Gas Utilities | 0.7 | 1.0 | — | 3.4 | |||||||||||||
| Ground Transportation | — | — | — | — | |||||||||||||
| Health Care Equipment & Supplies | 1.5 | 2.5 | 3.1 | 3.3 | |||||||||||||
| Health Care Providers & Services | — | — | — | — | |||||||||||||
| Health Care REITs | — | — | — | 0.8 | |||||||||||||
| Health Care Technology | — | — | — | — | |||||||||||||
| Hotels, Restaurants & Leisure | 1.5 | 2.4 | — | — | |||||||||||||
| Hotel & Resort REITs | — | — | — | — | |||||||||||||
| Household Durables | — | — | — | — | |||||||||||||
The accompanying notes are an integral part of these financial statements.
178 Annual Report
| Lazard International Strategic Equity Portfolio | Lazard Managed Equity Volatility Portfolio | Lazard US Equity Concentrated Portfolio | Lazard US Equity Focus Portfolio | Lazard US Small Cap Equity Select Portfolio | |||||||||||||||
| 4.2 | % | 1.2 | % | — | % | — | % | 1.0 | % | ||||||||||
| 2.8 | 0.3 | — | 0.8 | 1.4 | |||||||||||||||
| 1.1 | 0.2 | — | — | — | |||||||||||||||
| 10.7 | 4.2 | — | 3.0 | 7.7 | |||||||||||||||
| 8.5 | 1.1 | — | — | — | |||||||||||||||
| 1.0 | 4.2 | — | — | 2.6 | |||||||||||||||
| 0.8 | 0.3 | — | 6.1 | — | |||||||||||||||
| 1.4 | — | — | — | 2.4 | |||||||||||||||
| 0.9 | 1.5 | 9.0 | 7.7 | 4.2 | |||||||||||||||
| 1.2 | 0.8 | — | — | 1.6 | |||||||||||||||
| — | 1.8 | 4.4 | 2.9 | 1.0 | |||||||||||||||
| — | 1.2 | — | — | 2.0 | |||||||||||||||
| — | 0.3 | — | — | — | |||||||||||||||
| — | — | 4.1 | — | 0.8 | |||||||||||||||
| — | — | — | 3.2 | — | |||||||||||||||
| 1.1 | 5.8 | — | 2.5 | 2.7 | |||||||||||||||
| — | 0.6 | — | 2.1 | 2.7 | |||||||||||||||
| — | — | 3.5 | — | — | |||||||||||||||
| — | 0.3 | — | — | — | |||||||||||||||
| — | 0.3 | — | — | — | |||||||||||||||
| — | 5.6 | — | — | — | |||||||||||||||
| 1.6 | 3.5 | — | — | — | |||||||||||||||
| 3.2 | — | — | — | 2.4 | |||||||||||||||
| 1.9 | 0.6 | — | — | 1.2 | |||||||||||||||
| — | — | — | — | 2.7 | |||||||||||||||
| 1.4 | 1.1 | 3.2 | — | 1.3 | |||||||||||||||
| — | 2.4 | 9.2 | 4.2 | — | |||||||||||||||
| — | 5.1 | — | — | — | |||||||||||||||
| — | 3.9 | — | — | 1.9 | |||||||||||||||
| 1.3 | 1.6 | — | 3.3 | — | |||||||||||||||
| 2.2 | 0.5 | — | 2.0 | 5.4 | |||||||||||||||
| — | 5.8 | 11.8 | 3.8 | 1.5 | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| — | — | — | — | 1.1 | |||||||||||||||
| 2.2 | 0.8 | 4.7 | 3.3 | 3.1 | |||||||||||||||
| — | — | — | — | 1.1 | |||||||||||||||
| — | 0.2 | — | — | 1.6 | |||||||||||||||
Annual Report 179
Portfolio holdings by industry (as a percentage of net assets) (continued):
| Industry† | Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | Lazard International Quality Growth Portfolio | Lazard International Small Cap Equity Portfolio | |||||||||||||
| Household Products | 2.1 | % | 0.9 | % | 0.4 | % | — | % | |||||||||
| Industrial Conglomerates | 1.2 | — | — | — | |||||||||||||
| Industrial REITs | — | — | — | 2.2 | |||||||||||||
| Insurance | 2.7 | 6.0 | 6.2 | 2.4 | |||||||||||||
| Interactive Media & Services | 0.6 | 2.0 | 3.6 | 1.2 | |||||||||||||
| IT Services | 1.7 | 2.8 | 3.3 | 0.9 | |||||||||||||
| Leisure Products | 0.8 | 0.7 | 2.5 | 2.8 | |||||||||||||
| Life Sciences Tools & Services | 2.0 | 1.5 | 1.2 | 3.5 | |||||||||||||
| Machinery | 2.7 | 1.2 | 0.7 | 6.5 | |||||||||||||
| Media | 0.7 | — | — | — | |||||||||||||
| Metals & Mining | — | — | — | 0.7 | |||||||||||||
| Multi-Utilities | 3.0 | 2.7 | — | — | |||||||||||||
| Office REITs | — | — | — | — | |||||||||||||
| Oil, Gas & Consumable Fuels | 3.3 | 4.6 | — | 1.9 | |||||||||||||
| Passenger Airlines | 2.0 | 2.7 | — | 1.3 | |||||||||||||
| Personal Care Products | 2.0 | 1.8 | 2.3 | — | |||||||||||||
| Pharmaceuticals | 5.3 | 6.1 | — | — | |||||||||||||
| Professional Services | 7.5 | 6.0 | 12.1 | 12.5 | |||||||||||||
| Real Estate Management & Development | 1.5 | 0.5 | — | 4.7 | |||||||||||||
| Residential REITs | — | — | — | — | |||||||||||||
| Retail REITs | — | — | — | — | |||||||||||||
| Semiconductors & Semiconductor Equipment | 4.7 | 8.8 | 9.7 | 3.9 | |||||||||||||
| Software | 1.6 | 1.3 | 5.3 | 2.6 | |||||||||||||
| Specialized REITs | — | — | — | 2.4 | |||||||||||||
| Specialty Retail | 3.2 | — | 2.7 | 3.2 | |||||||||||||
| Technology Hardware, Storage & Peripherals | 1.4 | — | — | — | |||||||||||||
| Textiles, Apparel & Luxury Goods | 2.6 | 1.9 | 3.4 | 0.9 | |||||||||||||
| Tobacco | — | — | — | — | |||||||||||||
| Trading Companies & Distributors | — | 1.1 | 3.0 | 2.8 | |||||||||||||
| Wireless Telecommunication Services | — | — | — | — | |||||||||||||
| Subtotal | 96.2 | 96.5 | 97.2 | 98.2 | |||||||||||||
| Warrants | — | — | — | — | |||||||||||||
| Short-Term Investments | 0.8 | 1.7 | 2.6 | 0.7 | |||||||||||||
| Total Investments | 97.0 | % | 98.2 | % | 99.8 | % | 98.9 | % | |||||||||
| † | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
180 Annual Report
| Lazard International Strategic Equity Portfolio | Lazard Managed Equity Volatility Portfolio | Lazard US Equity Concentrated Portfolio | Lazard US Equity Focus Portfolio | Lazard US Small Cap Equity Select Portfolio | |||||||||||||||
| — | % | 5.0 | % | — | % | — | % | — | % | ||||||||||
| 2.4 | 0.8 | — | 3.4 | — | |||||||||||||||
| — | — | — | 2.2 | — | |||||||||||||||
| 7.0 | 7.7 | — | 4.0 | 3.7 | |||||||||||||||
| — | 1.1 | 9.6 | 7.6 | 3.9 | |||||||||||||||
| 2.5 | 2.4 | 4.5 | 3.0 | 1.3 | |||||||||||||||
| — | 0.5 | — | — | 1.3 | |||||||||||||||
| 4.7 | — | — | 6.2 | 4.1 | |||||||||||||||
| 1.3 | 0.7 | 4.6 | — | 4.9 | |||||||||||||||
| 2.6 | 0.3 | — | — | — | |||||||||||||||
| — | — | — | — | — | |||||||||||||||
| 1.7 | 3.1 | — | — | — | |||||||||||||||
| — | 0.8 | — | — | — | |||||||||||||||
| 1.8 | 1.1 | — | 3.3 | 3.5 | |||||||||||||||
| 2.4 | 0.2 | — | — | — | |||||||||||||||
| — | 1.1 | 1.6 | 1.6 | — | |||||||||||||||
| 6.7 | 8.1 | — | 2.8 | — | |||||||||||||||
| 7.1 | 1.5 | 4.2 | — | 3.9 | |||||||||||||||
| 0.4 | 0.7 | — | — | — | |||||||||||||||
| — | 0.2 | — | — | 1.4 | |||||||||||||||
| — | 1.3 | — | — | 1.6 | |||||||||||||||
| 10.4 | 1.3 | 9.2 | 6.3 | 2.7 | |||||||||||||||
| — | 2.1 | 2.6 | 9.9 | 6.0 | |||||||||||||||
| — | 0.6 | 10.3 | — | 1.4 | |||||||||||||||
| — | 0.6 | — | — | 3.2 | |||||||||||||||
| — | 0.3 | — | — | — | |||||||||||||||
| — | 0.2 | — | — | 1.2 | |||||||||||||||
| — | 1.0 | — | — | — | |||||||||||||||
| — | 0.4 | — | — | — | |||||||||||||||
| — | 1.0 | — | — | — | |||||||||||||||
| 98.5 | 99.3 | 96.5 | 95.2 | 97.5 | |||||||||||||||
| — | 0.0 | — | — | — | |||||||||||||||
| 1.5 | 0.6 | 4.4 | 4.9 | — | |||||||||||||||
| 100.0 | % | 99.9 | % | 100.9 | % | 100.1 | % | 97.5 | % | ||||||||||
Annual Report 181
Portfolio holdings by industry (as a percentage of net assets) (concluded):
| Industry† | Lazard US Sustainable Equity Portfolio | Lazard US Systematic Small Cap Equity Portfolio | |||||||
| Common & Preferred Stocks | |||||||||
| Aerospace & Defense | — | % | 0.4 | % | |||||
| Air Freight & Logistics | — | 0.3 | |||||||
| Automobile Components | 0.9 | 1.7 | |||||||
| Automobiles | — | 0.3 | |||||||
| Banks | 2.4 | 2.4 | |||||||
| Beverages | — | 0.6 | |||||||
| Biotechnology | — | 4.4 | |||||||
| Broadline Retail | — | 0.8 | |||||||
| Building Products | 2.0 | 2.6 | |||||||
| Capital Markets | 5.5 | 1.3 | |||||||
| Chemicals | 0.3 | 0.4 | |||||||
| Commercial Services & Supplies | 3.3 | 3.0 | |||||||
| Communications Equipment | 1.8 | 1.3 | |||||||
| Construction & Engineering | — | 1.6 | |||||||
| Construction Materials | — | 0.3 | |||||||
| Consumer Finance | 1.6 | 0.6 | |||||||
| Consumer Staples Distribution & Retail | 1.5 | 0.4 | |||||||
| Containers & Packaging | 2.5 | 1.1 | |||||||
| Distributors | — | 0.2 | |||||||
| Diversified Consumer Services | — | 2.4 | |||||||
| Diversified REITs | — | 0.4 | |||||||
| Diversified Telecommunication Services | — | 0.4 | |||||||
| Electrical Equipment | 2.6 | 2.6 | |||||||
| Electronic Equipment, Instruments & Components | 1.9 | 4.2 | |||||||
| Energy Equipment & Services | — | 0.3 | |||||||
| Entertainment | — | 1.0 | |||||||
| Financial Services | 3.8 | 1.3 | |||||||
| Food Products | — | 0.2 | |||||||
| Ground Transportation | 2.2 | 0.5 | |||||||
| Health Care Equipment & Supplies | 3.7 | 4.1 | |||||||
| Health Care Providers & Services | 5.6 | 2.4 | |||||||
| Health Care REITs | — | 0.8 | |||||||
| Health Care Technology | — | 0.5 | |||||||
| Hotels, Restaurants & Leisure | — | 1.1 | |||||||
| Household Durables | — | 4.6 | |||||||
| Household Products | 2.5 | 0.7 | |||||||
| Independent Power & Renewable Electricity Producers | — | 0.5 | |||||||
| Industrial REITs | 2.5 | 1.2 | |||||||
| Insurance | — | 2.1 | |||||||
| Interactive Media & Services | — | 1.6 | |||||||
| IT Services | 3.7 | 1.5 | |||||||
The accompanying notes are an integral part of these financial statements.
182 Annual Report
| Industry† | Lazard US Sustainable Equity Portfolio | Lazard US Systematic Small Cap Equity Portfolio | |||||||
| Leisure Products | — | % | 2.1 | % | |||||
| Life Sciences Tools & Services | 9.1 | 1.4 | |||||||
| Machinery | 4.9 | 3.1 | |||||||
| Marine Transportation | — | 0.6 | |||||||
| Media | — | 1.2 | |||||||
| Mortgage REITs | — | 0.6 | |||||||
| Office REITs | — | 0.3 | |||||||
| Oil, Gas & Consumable Fuels | — | 0.3 | |||||||
| Paper & Forest Products | — | 0.3 | |||||||
| Personal Care Products | 1.1 | 0.3 | |||||||
| Pharmaceuticals | 3.7 | 0.3 | |||||||
| Professional Services | — | 5.6 | |||||||
| Real Estate Management & Development | — | 0.4 | |||||||
| Residential REITs | — | 0.5 | |||||||
| Retail REITs | — | 1.1 | |||||||
| Semiconductors & Semiconductor Equipment | 5.5 | 2.0 | |||||||
| Software | 18.2 | 11.6 | |||||||
| Specialized REITs | — | 0.2 | |||||||
| Specialty Retail | 3.0 | 2.8 | |||||||
| Technology Hardware, Storage & Peripherals | — | 1.2 | |||||||
| Textiles, Apparel & Luxury Goods | 1.1 | 2.2 | |||||||
| Trading Companies & Distributors | — | 2.8 | |||||||
| Wireless Telecommunication Services | — | 0.1 | |||||||
| Subtotal | 96.9 | 99.1 | |||||||
| Rights | — | 0.0 | |||||||
| Short-Term Investments | 3.3 | 1.1 | |||||||
| Total Investments | 100.2 | % | 100.2 | % | |||||
| † | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
Annual Report 183
The Lazard Funds, Inc. Statements of Assets and Liabilities
| December 31, 2023 | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | |||||||||
| ASSETS | |||||||||||
| Investments in securities, at fair value | $ | 92,696,950 | $ | 118,633,756 | |||||||
| Non-controlled affiliated issuers, at fair value (Note 5) | — | — | |||||||||
| Foreign currency, at fair value | 60,748 | 33,605 | |||||||||
| Receivables for: | |||||||||||
| Dividends | 100,754 | 239,551 | |||||||||
| Capital stock sold | 92,209 | 93,784 | |||||||||
| Investments sold | 1,206,603 | 32 | |||||||||
| Gross unrealized appreciation on forward currency contracts | — | — | |||||||||
| Total assets | 94,157,264 | 119,000,728 | |||||||||
| LIABILITIES | |||||||||||
| Payables for: | |||||||||||
| Management fees | 71,630 | 91,816 | |||||||||
| Accrued custodian fees | 9,736 | 14,951 | |||||||||
| Accrued administration fees | 5,083 | 5,428 | |||||||||
| Accrued professional services | 34,857 | 21,828 | |||||||||
| Accrued distribution fees | 940 | 598 | |||||||||
| Accrued directors’ fees | 27 | — | |||||||||
| Foreign capital gains taxes | 145,824 | 301,396 | |||||||||
| Capital stock redeemed | 19,625 | 480,931 | |||||||||
| Investments purchased | 1,460,018 | — | |||||||||
| Gross unrealized depreciation on forward currency contracts | — | — | |||||||||
| Other accrued expenses and payables | 7,333 | 8,905 | |||||||||
| Total liabilities | 1,755,073 | 925,853 | |||||||||
| Net assets | $ | 92,402,191 | $ | 118,074,875 | |||||||
| NET ASSETS | |||||||||||
| Paid in capital | $ | 197,992,377 | $ | 175,952,336 | |||||||
| Distributable earnings (Accumulated loss) | (105,590,186 | ) | (57,877,461 | ) | |||||||
| Net assets | $ | 92,402,191 | $ | 118,074,875 | |||||||
| Institutional Shares | |||||||||||
| Net assets | $ | 86,699,156 | $ | 115,633,420 | |||||||
| Shares of capital stock outstanding* | 6,846,091 | 11,787,085 | |||||||||
| Net asset value, offering and redemption price per share | $ | 12.66 | $ | 9.81 | |||||||
| Open Shares | |||||||||||
| Net assets | $ | 5,703,035 | $ | 2,280,918 | |||||||
| Shares of capital stock outstanding* | 453,059 | 233,032 | |||||||||
| Net asset value, offering and redemption price per share | $ | 12.59 | $ | 9.79 | |||||||
| R6 Shares | |||||||||||
| Net assets | — | $ | 160,537 | ||||||||
| Shares of capital stock outstanding* | — | 16,343 | |||||||||
| Net asset value, offering and redemption price per share | — | $ | 9.82 | ||||||||
The accompanying notes are an integral part of these financial statements.
184 Annual Report
| Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio | Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | Lazard Global Listed Infrastructure Portfolio | ||||||||||||||||||||
| $ | 132,796,362 | $ | 2,713,388,195 | $ | 118,499,125 | $ | 97,833,621 | $ | 8,061,337,560 | |||||||||||||||
| — | — | — | — | 607,580,890 | ||||||||||||||||||||
| 10,703 | 6,429,364 | 75 | 74 | 4,056 | ||||||||||||||||||||
| 218,132 | 7,146,297 | 470,157 | 146,862 | 36,757,425 | ||||||||||||||||||||
| 497,314 | 9,106,808 | 228 | 14,308 | 13,524,679 | ||||||||||||||||||||
| — | 4,242,481 | — | — | 262 | ||||||||||||||||||||
| — | — | — | — | 1,234,656 | ||||||||||||||||||||
| 133,522,511 | 2,740,313,145 | 118,969,585 | 97,994,865 | 8,720,439,528 | ||||||||||||||||||||
| 74,115 | 2,228,587 | 73,361 | 52,316 | 6,614,649 | ||||||||||||||||||||
| 17,523 | 101,848 | 8,991 | 8,446 | 274,373 | ||||||||||||||||||||
| 5,474 | 57,139 | 5,346 | 5,004 | 142,627 | ||||||||||||||||||||
| 26,505 | 65,447 | 25,401 | 24,746 | 119,184 | ||||||||||||||||||||
| 106 | 72,097 | 34 | 244 | 62,300 | ||||||||||||||||||||
| 330 | — | 241 | — | — | ||||||||||||||||||||
| 433,801 | 3,305,509 | — | — | — | ||||||||||||||||||||
| 30,118 | 1,825,799 | — | 1,209 | 7,818,918 | ||||||||||||||||||||
| 653,167 | 35,900,004 | — | — | 951,881 | ||||||||||||||||||||
| — | — | — | — | 29,294,449 | ||||||||||||||||||||
| 15,758 | 305,379 | 3,947 | 4,780 | 204,121 | ||||||||||||||||||||
| 1,256,897 | 43,861,809 | 117,321 | 96,745 | 45,482,502 | ||||||||||||||||||||
| $ | 132,265,614 | $ | 2,696,451,336 | $ | 118,852,264 | $ | 97,898,120 | $ | 8,674,957,026 | |||||||||||||||
| $ | 139,985,446 | $ | 3,445,406,977 | $ | 108,088,532 | $ | 65,116,261 | $ | 8,295,037,975 | |||||||||||||||
| (7,719,832 | ) | (748,955,641 | ) | 10,763,732 | 32,781,859 | 379,919,051 | ||||||||||||||||||
| $ | 132,265,614 | $ | 2,696,451,336 | $ | 118,852,264 | $ | 97,898,120 | $ | 8,674,957,026 | |||||||||||||||
| $ | 131,856,275 | $ | 2,393,340,764 | $ | 118,675,508 | $ | 96,715,507 | $ | 8,390,489,066 | |||||||||||||||
| 12,128,657 | 139,428,415 | 12,002,692 | 5,480,351 | 549,085,089 | ||||||||||||||||||||
| $ | 10.87 | $ | 17.17 | $ | 9.89 | $ | 17.65 | $ | 15.28 | |||||||||||||||
| $ | 257,795 | $ | 275,834,342 | $ | 176,756 | $ | 1,182,613 | $ | 284,467,960 | |||||||||||||||
| 23,716 | 15,528,827 | 17,882 | 66,984 | 18,601,702 | ||||||||||||||||||||
| $ | 10.87 | $ | 17.76 | $ | 9.88 | $ | 17.66 | $ | 15.29 | |||||||||||||||
| $ | 151,544 | $ | 27,276,230 | — | — | — | ||||||||||||||||||
| 13,936 | 1,587,936 | — | — | — | ||||||||||||||||||||
| $ | 10.87 | $ | 17.18 | — | — | — | ||||||||||||||||||
Annual Report 185
| December 31, 2023 | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | |||||||||
| Cost of investments in securities | $ | 73,379,672 | $ | 99,756,609 | |||||||
| Cost of non-controlled affiliated issuers | $ | — | $ | — | |||||||
| Cost of foreign currency | $ | 60,731 | $ | 33,517 | |||||||
| * | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
The accompanying notes are an integral part of these financial statements.
186 Annual Report
| Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio | Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | Lazard Global Listed Infrastructure Portfolio | ||||||||||||||||||||
| $ | 122,614,934 | $ | 2,427,336,942 | $ | 106,115,734 | $ | 65,227,667 | $ | 6,967,245,613 | |||||||||||||||
| $ | — | $ | — | $ | — | $ | — | $ | 917,744,129 | |||||||||||||||
| $ | 10,691 | $ | 6,429,413 | $ | 75 | $ | 73 | $ | 4,052 | |||||||||||||||
Annual Report 187
| December 31, 2023 | Lazard Global Strategic Equity Portfolio | Lazard International Equity Advantage Portfolio | |||||||||
| ASSETS | |||||||||||
| Investments in securities, at fair value | $ | 10,916,044 | $ | 19,394,369 | |||||||
| Cash | — | 89 | |||||||||
| Foreign currency, at fair value | 47 | 530 | |||||||||
| Receivables for: | |||||||||||
| Dividends and interest | 31,817 | 26,662 | |||||||||
| Investments sold | — | — | |||||||||
| Capital stock sold | — | 33,972 | |||||||||
| Amount due from Investment Manager (Note 3) | — | 3,154 | |||||||||
| Total assets | 10,947,908 | 19,458,776 | |||||||||
| LIABILITIES | |||||||||||
| Payables for: | |||||||||||
| Management fees | 866 | — | |||||||||
| Foreign capital gains taxes | — | — | |||||||||
| Accrued custodian fees | 5,201 | 7,920 | |||||||||
| Accrued professional services | 26,833 | 23,864 | |||||||||
| Accrued administration fees | 3,015 | 2,895 | |||||||||
| Accrued distribution fees | — | 1,240 | |||||||||
| Accrued directors’ fees | — | — | |||||||||
| Capital stock redeemed | 36,161 | 432 | |||||||||
| Investments purchased | — | — | |||||||||
| Other accrued expenses and payables | 1,808 | 1,689 | |||||||||
| Total liabilities | 73,884 | 38,040 | |||||||||
| Net assets | $ | 10,874,024 | $ | 19,420,736 | |||||||
| NET ASSETS | |||||||||||
| Paid in capital | $ | 10,415,752 | $ | 18,850,447 | |||||||
| Distributable earnings (Accumulated loss) | 458,272 | 570,289 | |||||||||
| Net assets | $ | 10,874,024 | $ | 19,420,736 | |||||||
| Institutional Shares | |||||||||||
| Net assets | $ | 10,859,319 | $ | 3,076,131 | |||||||
| Shares of capital stock outstanding* | 866,796 | 276,750 | |||||||||
| Net asset value, offering and redemption price per share | $ | 12.53 | $ | 11.12 | |||||||
| Open Shares | |||||||||||
| Net assets | $ | 14,705 | $ | 16,344,605 | |||||||
| Shares of capital stock outstanding* | 1,184 | 1,469,615 | |||||||||
| Net asset value, offering and redemption price per share | $ | 12.42 | $ | 11.12 | |||||||
| R6 Shares | |||||||||||
| Net assets | — | — | |||||||||
| Shares of capital stock outstanding* | — | — | |||||||||
| Net asset value, offering and redemption price per share | — | — | |||||||||
| Cost of investments in securities | $ | 9,830,106 | $ | 18,793,987 | |||||||
| Cost of foreign currency | $ | 46 | $ | 530 | |||||||
| * | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
The accompanying notes are an integral part of these financial statements.
188 Annual Report
| Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | Lazard International Quality Growth Portfolio | Lazard International Small Cap Equity Portfolio | Lazard International Strategic Equity Portfolio | ||||||||||||||||||||
| $ | 1,109,906,450 | $ | 52,464,164 | $ | 257,485,276 | $ | 11,919,325 | $ | 4,338,303,256 | |||||||||||||||
| — | — | — | — | — | ||||||||||||||||||||
| 162,593 | 229 | 3,741 | 8,536 | 133,230 | ||||||||||||||||||||
| 8,381,907 | 191,169 | 302,659 | 118,192 | 13,112,823 | ||||||||||||||||||||
| 27,574,526 | 789,654 | — | 47,794 | 5,244,713 | ||||||||||||||||||||
| 931,870 | 68,067 | 373,989 | 1,619 | 4,238,914 | ||||||||||||||||||||
| — | — | — | 5,897 | — | ||||||||||||||||||||
| 1,146,957,346 | 53,513,283 | 258,165,665 | 12,101,363 | 4,361,032,936 | ||||||||||||||||||||
| 721,152 | 26,299 | 147,600 | — | 2,710,915 | ||||||||||||||||||||
| — | — | — | — | 1,824,069 | ||||||||||||||||||||
| 45,319 | 7,448 | 13,498 | 5,922 | 152,730 | ||||||||||||||||||||
| 42,378 | 24,899 | 24,183 | 27,124 | 84,979 | ||||||||||||||||||||
| 28,649 | 4,006 | 7,806 | 3,092 | 78,678 | ||||||||||||||||||||
| 13,951 | 547 | 326 | 1,523 | 75,163 | ||||||||||||||||||||
| — | — | 495 | — | 1,029 | ||||||||||||||||||||
| 560,491 | 473 | 37,259 | 8,968 | 18,019,305 | ||||||||||||||||||||
| 702,987 | 440 | — | — | 8,213 | ||||||||||||||||||||
| 36,139 | 5,220 | 6,845 | 2,801 | 109,485 | ||||||||||||||||||||
| 2,151,066 | 69,332 | 238,012 | 49,430 | 23,064,566 | ||||||||||||||||||||
| $ | 1,144,806,280 | $ | 53,443,951 | $ | 257,927,653 | $ | 12,051,933 | $ | 4,337,968,370 | |||||||||||||||
| $ | 977,855,343 | $ | 49,215,413 | $ | 246,121,321 | $ | 13,836,193 | $ | 3,490,885,385 | |||||||||||||||
| 166,950,937 | 4,228,538 | 11,806,332 | (1,784,260 | ) | 847,082,985 | |||||||||||||||||||
| $ | 1,144,806,280 | $ | 53,443,951 | $ | 257,927,653 | $ | 12,051,933 | $ | 4,337,968,370 | |||||||||||||||
| $ | 1,014,462,382 | $ | 50,570,333 | $ | 255,656,899 | $ | 4,811,183 | $ | 3,950,193,447 | |||||||||||||||
| 62,778,851 | 4,815,470 | 16,441,822 | 572,771 | 255,236,019 | ||||||||||||||||||||
| $ | 16.16 | $ | 10.50 | $ | 15.55 | $ | 8.40 | $ | 15.48 | |||||||||||||||
| $ | 56,809,029 | $ | 2,873,618 | $ | 1,753,715 | $ | 7,240,750 | $ | 310,808,515 | |||||||||||||||
| 3,461,398 | 272,190 | 113,448 | 859,225 | 19,879,784 | ||||||||||||||||||||
| $ | 16.41 | $ | 10.56 | $ | 15.46 | $ | 8.43 | $ | 15.63 | |||||||||||||||
| $ | 73,534,869 | — | $ | 517,039 | — | $ | 76,966,408 | |||||||||||||||||
| 4,560,047 | — | 33,251 | — | 4,967,707 | ||||||||||||||||||||
| $ | 16.13 | — | $ | 15.55 | — | $ | 15.49 | |||||||||||||||||
| $ | 936,973,744 | $ | 45,788,325 | $ | 237,985,104 | $ | 11,577,494 | $ | 3,352,104,438 | |||||||||||||||
| $ | 160,697 | $ | 224 | $ | 3,730 | $ | 8,592 | $ | 131,507 | |||||||||||||||
Annual Report 189
| December 31, 2023 | Lazard Managed Equity Volatility Portfolio | Lazard US Equity Concentrated Portfolio | |||||||||
| ASSETS | |||||||||||
| Investments in securities, at fair value | $ | 17,967,831 | $ | 204,726,697 | |||||||
| Cash | — | 1,352 | |||||||||
| Foreign currency, at fair value | 2,274 | — | |||||||||
| Receivables for: | |||||||||||
| Capital stock sold | — | 225,914 | |||||||||
| Dividends | 50,847 | 51,681 | |||||||||
| Investments sold | — | — | |||||||||
| Amount due from Investment Manager (Note 3) | — | — | |||||||||
| Total assets | 18,020,952 | 205,005,644 | |||||||||
| LIABILITIES | |||||||||||
| Payables for: | |||||||||||
| Management fees | 2,407 | 124,872 | |||||||||
| Accrued professional services | 24,186 | 36,310 | |||||||||
| Accrued custodian fees | 7,832 | 21,839 | |||||||||
| Accrued administration fees | 3,178 | 11,385 | |||||||||
| Accrued distribution fees | 23 | 5,021 | |||||||||
| Accrued directors’ fees | 33 | 2,481 | |||||||||
| Capital stock redeemed | — | 1,826,839 | |||||||||
| Investments purchased | — | — | |||||||||
| Other accrued expenses and payables | 1,979 | 54,485 | |||||||||
| Total liabilities | 39,638 | 2,083,232 | |||||||||
| Net assets | $ | 17,981,314 | $ | 202,922,412 | |||||||
| NET ASSETS | |||||||||||
| Paid in capital | $ | 16,804,679 | $ | 137,088,718 | |||||||
| Distributable earnings (Accumulated loss) | 1,176,635 | 65,833,694 | |||||||||
| Net assets | $ | 17,981,314 | $ | 202,922,412 | |||||||
| Institutional Shares | |||||||||||
| Net assets | $ | 17,894,134 | $ | 181,667,222 | |||||||
| Shares of capital stock outstanding* | 1,450,305 | 21,265,847 | |||||||||
| Net asset value, offering and redemption price per share | $ | 12.34 | $ | 8.54 | |||||||
| Open Shares | |||||||||||
| Net assets | $ | 87,180 | $ | 21,230,969 | |||||||
| Shares of capital stock outstanding* | 7,070 | 2,437,790 | |||||||||
| Net asset value, offering and redemption price per share | $ | 12.33 | $ | 8.71 | |||||||
| R6 Shares | |||||||||||
| Net assets | — | $ | 24,221 | ||||||||
| Shares of capital stock outstanding* | — | 2,801 | |||||||||
| Net asset value, offering and redemption price per share | — | $ | 8.65 | ||||||||
| Cost of investments in securities | $ | 16,827,367 | $ | 138,426,202 | |||||||
| Cost of foreign currency | $ | 2,274 | $ | — | |||||||
| * | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
The accompanying notes are an integral part of these financial statements.
190 Annual Report
| Lazard US Equity Focus Portfolio | Lazard US Small Cap Equity Select Portfolio | Lazard US Sustainable Equity Portfolio | Lazard US Systematic Small Cap Equity Portfolio | |||||||||||||
| $ | 91,900,120 | $ | 38,419,992 | $ | 11,859,093 | $ | 40,112,799 | |||||||||
| — | 1,000,094 | 474 | 898 | |||||||||||||
| — | — | — | — | |||||||||||||
| 19 | 18,125 | — | 93,949 | |||||||||||||
| 39,480 | 31,812 | 6,129 | 45,801 | |||||||||||||
| — | — | — | 22,444 | |||||||||||||
| — | — | 890 | — | |||||||||||||
| 91,939,619 | 39,470,023 | 11,866,586 | 40,275,891 | |||||||||||||
| 32,249 | 14,107 | — | 10,516 | |||||||||||||
| 23,602 | 23,733 | 21,878 | 23,389 | |||||||||||||
| 9,048 | 8,283 | 6,381 | 13,047 | |||||||||||||
| 6,547 | 3,859 | 6,612 | 7,192 | |||||||||||||
| 238 | 1,600 | 112 | 26 | |||||||||||||
| 184 | 10 | — | — | |||||||||||||
| 9,647 | 96 | — | — | |||||||||||||
| — | — | — | 189,245 | |||||||||||||
| 4,460 | 4,469 | 1,999 | 2,264 | |||||||||||||
| 85,975 | 56,157 | 36,982 | 245,679 | |||||||||||||
| $ | 91,853,644 | $ | 39,413,866 | $ | 11,829,604 | $ | 40,030,212 | |||||||||
| $ | 64,494,716 | $ | 31,403,361 | $ | 8,299,729 | $ | 35,300,257 | |||||||||
| 27,358,928 | 8,010,505 | 3,529,875 | 4,729,955 | |||||||||||||
| $ | 91,853,644 | $ | 39,413,866 | $ | 11,829,604 | $ | 40,030,212 | |||||||||
| $ | 43,672,607 | $ | 32,003,587 | $ | 11,239,494 | $ | 39,778,882 | |||||||||
| 2,838,393 | 2,577,164 | 798,449 | 3,909,490 | |||||||||||||
| $ | 15.39 | $ | 12.42 | $ | 14.08 | $ | 10.17 | |||||||||
| $ | 1,169,606 | $ | 7,371,401 | $ | 590,110 | $ | 139,842 | |||||||||
| 75,579 | 667,798 | 41,891 | 13,713 | |||||||||||||
| $ | 15.48 | $ | 11.04 | $ | 14.09 | $ | 10.20 | |||||||||
| $ | 47,011,431 | $ | 38,878 | — | $ | 111,488 | ||||||||||
| 3,053,800 | 3,122 | — | 10,962 | |||||||||||||
| $ | 15.39 | $ | 12.45 | — | $ | 10.17 | ||||||||||
| $ | 64,125,402 | $ | 31,583,431 | $ | 8,682,263 | $ | 33,502,978 | |||||||||
| $ | — | $ | — | $ | — | $ | — | |||||||||
Annual Report 191
The Lazard Funds, Inc. Statements of Operations
| For the Year Ended December 31, 2023 | Lazard Developing Markets Equity Portfolio | Lazard Emerging Markets Core Equity Portfolio | ||||||||||
| Investment Income (Loss) Income | ||||||||||||
| Dividends# | ||||||||||||
| Unaffiliated issuers | $ | 2,320,714 | $ | 2,982,374 | ||||||||
| Non-controlled affiliated issuers (Note 5)(a) | — | — | ||||||||||
| Non-cash income | 984,592 | 346,302 | ||||||||||
| Total investment income* | 3,305,306 | 3,328,676 | ||||||||||
| Expenses | ||||||||||||
| Management fees (Note 3) | 1,001,170 | 1,119,460 | ||||||||||
| Custodian fees | 54,004 | 72,525 | ||||||||||
| Administration fees | 29,801 | 40,430 | ||||||||||
| Professional services | 63,236 | 41,015 | ||||||||||
| Distribution fees (Open Shares) | 14,509 | 5,099 | ||||||||||
| Shareholders’ services | 21,984 | 21,015 | ||||||||||
| Directors’ fees and expenses | 11,971 | 13,417 | ||||||||||
| Shareholders’ reports | 16,696 | 39,398 | ||||||||||
| Registration fees | 36,545 | 43,467 | ||||||||||
| Other^ | 11,261 | 39,582 | ||||||||||
| Total gross expenses | 1,261,177 | 1,435,408 | ||||||||||
| Management fees waived and expenses reimbursed | (116,338 | ) | (138,079 | ) | ||||||||
| Total net expenses | 1,144,839 | 1,297,329 | ||||||||||
| Net investment income (loss) | 2,160,467 | 2,031,347 | ||||||||||
| Net Realized and Unrealized Gain (Loss) | ||||||||||||
| Net realized gain (loss) on: | ||||||||||||
| Investments** | (5,546,837 | ) | (5,444,662 | ) | ||||||||
| Non-controlled affiliated issuers(a) | — | — | ||||||||||
| Foreign currency transactions | (2,381 | ) | (104,929 | ) | ||||||||
| Forward currency contracts | — | — | ||||||||||
| Total net realized gain (loss) | (5,549,218 | ) | (5,549,591 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||
| Investments† | 11,774,993 | 14,720,315 | ||||||||||
| Non-controlled affiliated issuers(a) | — | — | ||||||||||
| Foreign currency translations | 337 | (6,101 | ) | |||||||||
| Forward currency contracts | — | — | ||||||||||
| Total net change in unrealized appreciation (depreciation) | 11,775,330 | 14,714,214 | ||||||||||
| Net realized and unrealized gain (loss) | 6,226,112 | 9,164,623 | ||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 8,386,579 | $ | 11,195,970 | ||||||||
| * | Net of foreign withholding taxes of | $ | 296,635 | $ | 376,039 | |||||||
| ** | Net of foreign capital gains taxes of | $ | 68,220 | $ | 19,392 | |||||||
| † | Includes net change in foreign capital gains taxes of | $ | 9,868 | $ | (142,848 | ) | ||||||
| ^ | Includes interest on line of credit of | $ | 2,987 | $ | 7,091 | |||||||
| (a) | See Note 5 for information on affiliated issuers |
The accompanying notes are an integral part of these financial statements.
192 Annual Report
| Lazard Emerging Markets Equity Advantage Portfolio | Lazard Emerging Markets Equity Portfolio | Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | Lazard Global Listed Infrastructure Portfolio | ||||||||||||||||||||
| $ | 3,480,489 | $ | 136,652,062 | $ | 4,132,643 | $ | 1,573,654 | $ | 286,664,874 | |||||||||||||||
| — | — | — | — | 50,010,504 | ||||||||||||||||||||
| 214,569 | — | — | — | — | ||||||||||||||||||||
| 3,695,058 | 136,652,062 | 4,132,643 | 1,573,654 | 336,675,378 | ||||||||||||||||||||
| 856,585 | 26,285,362 | 1,200,386 | 612,656 | 76,891,584 | ||||||||||||||||||||
| 99,329 | 746,615 | 54,558 | 50,120 | 1,588,003 | ||||||||||||||||||||
| 31,563 | 305,140 | 36,042 | 29,068 | 788,817 | ||||||||||||||||||||
| 50,123 | 288,704 | 54,546 | 50,385 | 737,352 | ||||||||||||||||||||
| 552 | 665,351 | 614 | 3,145 | 737,044 | ||||||||||||||||||||
| 20,668 | 301,193 | 16,785 | 16,755 | 714,824 | ||||||||||||||||||||
| 12,205 | 183,105 | 16,544 | 11,352 | 579,898 | ||||||||||||||||||||
| 11,399 | 154,478 | 9,833 | 12,868 | 368,633 | ||||||||||||||||||||
| 40,117 | 96,439 | 35,899 | 42,464 | 332,990 | ||||||||||||||||||||
| 9,960 | 106,134 | 12,440 | 8,631 | 329,089 | ||||||||||||||||||||
| 1,132,501 | 29,132,521 | 1,437,647 | 837,444 | 83,068,234 | ||||||||||||||||||||
| (102,454 | ) | (3,572 | ) | (8,157 | ) | (5,250 | ) | — | ||||||||||||||||
| 1,030,047 | 29,128,949 | 1,429,490 | 832,194 | 83,068,234 | ||||||||||||||||||||
| 2,665,011 | 107,523,113 | 2,703,153 | 741,460 | 253,607,144 | ||||||||||||||||||||
| (2,027,874 | ) | 103,428,868 | 10,548,232 | 1,151,310 | 135,262,349 | |||||||||||||||||||
| — | — | — | — | (371,808 | ) | |||||||||||||||||||
| (77,931 | ) | (1,249,812 | ) | (15,914 | ) | (4,745 | ) | 1,292,230 | ||||||||||||||||
| — | — | — | — | (76,368,195 | ) | |||||||||||||||||||
| (2,105,805 | ) | 102,179,056 | 10,532,318 | 1,146,565 | 59,814,576 | |||||||||||||||||||
| 11,528,610 | 320,906,331 | 14,292,855 | 12,963,647 | 641,918,392 | ||||||||||||||||||||
| — | — | — | — | (50,188,104 | ) | |||||||||||||||||||
| 2,337 | 47,634 | 6,205 | 4,891 | 644,975 | ||||||||||||||||||||
| — | — | — | — | (43,021,873 | ) | |||||||||||||||||||
| 11,530,947 | 320,953,965 | 14,299,060 | 12,968,538 | 549,353,390 | ||||||||||||||||||||
| 9,425,142 | 423,133,021 | 24,831,378 | 14,115,103 | 609,167,966 | ||||||||||||||||||||
| $ | 12,090,153 | $ | 530,656,134 | $ | 27,534,531 | $ | 14,856,563 | $ | 862,775,110 | |||||||||||||||
| $ | 449,616 | $ | 16,602,914 | $ | 203,339 | $ | 60,106 | $ | 14,674,655 | |||||||||||||||
| $ | 128,059 | $ | 1,495,016 | $ | — | $ | — | $ | — | |||||||||||||||
| $ | (433,801 | ) | $ | (1,235,723 | ) | $ | — | $ | — | $ | — | |||||||||||||
| $ | 527 | $ | 10,168 | $ | 1,978 | $ | 208 | $ | — | |||||||||||||||
| # | Dividend income for Lazard Global Equity Select Portfolio and Lazard Global Listed Infrastructure Portfolio includes $27,612 and $1,219,941, respectively, of refunds received as a result of European Union dividend withholding tax reclaim filings. The amounts of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $87,718 and $15,894,596 respectively. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
Annual Report 193
| For the Year Ended December 31, 2023 | Lazard Global Strategic Equity Portfolio | Lazard International Equity Advantage Portfolio | ||||||||||
| Investment Income (Loss) | ||||||||||||
| Income | ||||||||||||
| Dividends# | $ | 174,301 | $ | 111,829 | ||||||||
| Total investment income* | 174,301 | 111,829 | ||||||||||
| Expenses | ||||||||||||
| Management fees (Note 3) | 79,663 | 22,096 | ||||||||||
| Custodian fees | 32,498 | 46,854 | ||||||||||
| Distribution fees (Open Shares) | 254 | 1,533 | ||||||||||
| Professional services | 43,952 | 43,274 | ||||||||||
| Administration fees | 18,614 | 17,711 | ||||||||||
| Directors’ fees and expenses | 5,711 | 5,166 | ||||||||||
| Shareholders’ services | 10,815 | 10,405 | ||||||||||
| Shareholders’ reports | 8,093 | 7,999 | ||||||||||
| Registration fees | 40,803 | 37,674 | ||||||||||
| Other^ | 287 | 110 | ||||||||||
| Total gross expenses | 240,690 | 192,822 | ||||||||||
| Management fees waived and expenses reimbursed | (144,552 | ) | (163,984 | ) | ||||||||
| Total net expenses | 96,138 | 28,838 | ||||||||||
| Net investment income (loss) | 78,163 | 82,991 | ||||||||||
| Net Realized and Unrealized Gain (Loss) | ||||||||||||
| Net realized gain (loss) on: | ||||||||||||
| Investments** | (159,867 | ) | 186,913 | |||||||||
| Foreign currency transactions | (4,703 | ) | 1,079 | |||||||||
| Total net realized gain (loss) | (164,570 | ) | 187,992 | |||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||
| Investments† | 1,654,940 | 520,192 | ||||||||||
| Foreign currency translations | 534 | 471 | ||||||||||
| Total net change in unrealized appreciation (depreciation) | 1,655,474 | 520,663 | ||||||||||
| Net realized and unrealized gain (loss) | 1,490,904 | 708,655 | ||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 1,569,067 | $ | 791,646 | ||||||||
| *# | Net of foreign withholding taxes of | $ | 15,273 | $ | 13,583 | |||||||
| ** | Net of foreign capital gains taxes of | $ | — | $ | — | |||||||
| † | Includes net change in foreign capital gains taxes of | $ | — | $ | — | |||||||
| ^ | Includes interest on line of credit of | $ | 191 | $ | 86 | |||||||
| # | Dividend income for Lazard Global Strategic Equity Portfolio includes $2,873 of refunds received as a result of European Union dividend withholding tax reclaim filings. The amount of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $18,146. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
The accompanying notes are an integral part of these financial statements.
194 Annual Report
| Lazard International Equity Portfolio | Lazard International Equity Select Portfolio | Lazard International Quality Growth Portfolio | Lazard International Small Cap Equity Portfolio | Lazard International Strategic Equity Portfolio | ||||||||||||||||||||
| $ | 33,124,230 | $ | 1,356,402 | $ | 3,344,727 | $ | 395,989 | $ | 101,537,373 | |||||||||||||||
| 33,124,230 | 1,356,402 | 3,344,727 | 395,989 | 101,537,373 | ||||||||||||||||||||
| 8,488,679 | 347,226 | 1,449,365 | 96,308 | 33,529,932 | ||||||||||||||||||||
| 274,169 | 48,145 | 77,685 | 40,223 | 949,344 | ||||||||||||||||||||
| 143,993 | 7,453 | 3,979 | 18,858 | 787,010 | ||||||||||||||||||||
| 253,952 | 50,929 | 55,395 | 48,499 | 547,224 | ||||||||||||||||||||
| 155,466 | 23,964 | 41,442 | 18,892 | 459,939 | ||||||||||||||||||||
| 79,625 | 8,671 | 16,540 | 5,915 | 318,465 | ||||||||||||||||||||
| 109,479 | 14,974 | 24,351 | 13,471 | 305,790 | ||||||||||||||||||||
| 64,413 | 11,157 | 16,823 | 10,472 | 169,760 | ||||||||||||||||||||
| 70,249 | 35,069 | 41,433 | 32,127 | 120,482 | ||||||||||||||||||||
| 57,797 | 7,065 | 23,815 | 6,046 | 257,684 | ||||||||||||||||||||
| 9,697,822 | 554,653 | 1,750,828 | 290,811 | 37,445,630 | ||||||||||||||||||||
| (27,378 | ) | (65,785 | ) | (90,724 | ) | (132,740 | ) | (5,763 | ) | |||||||||||||||
| 9,670,444 | 488,868 | 1,660,104 | 158,071 | 37,439,867 | ||||||||||||||||||||
| 23,453,786 | 867,534 | 1,684,623 | 237,918 | 64,097,506 | ||||||||||||||||||||
| 40,103,264 | 1,180,669 | (756,809 | ) | (219,327 | ) | 100,205,954 | ||||||||||||||||||
| (247,436 | ) | (8,097 | ) | (60,614 | ) | (3,573 | ) | (626,270 | ) | |||||||||||||||
| 39,855,828 | 1,172,572 | (817,423 | ) | (222,900 | ) | 99,579,684 | ||||||||||||||||||
| 98,799,745 | 4,177,946 | 29,679,157 | 1,435,367 | 531,579,789 | ||||||||||||||||||||
| 318,588 | 12,749 | 9,916 | 3,344 | 280,531 | ||||||||||||||||||||
| 99,118,333 | 4,190,695 | 29,689,073 | 1,438,711 | 531,860,320 | ||||||||||||||||||||
| 138,974,161 | 5,363,267 | 28,871,650 | 1,215,811 | 631,440,004 | ||||||||||||||||||||
| $ | 162,427,947 | $ | 6,230,801 | $ | 30,556,273 | $ | 1,453,729 | $ | 695,537,510 | |||||||||||||||
| $ | 1,677,979 | $ | 106,978 | $ | 351,343 | $ | (11,500 | ) | $ | 6,721,050 | ||||||||||||||
| $ | — | $ | 7,507 | $ | — | $ | (820 | ) | $ | 485,266 | ||||||||||||||
| $ | — | $ | 13,145 | $ | — | $ | — | $ | (144,628 | ) | ||||||||||||||
| $ | 15,300 | $ | 300 | $ | 11,614 | $ | 196 | $ | 84,896 | |||||||||||||||
| # | Dividend income for Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Quality Growth Portfolio, Lazard International Small Cap Equity Portfolio and Lazard International Strategic Equity Portfolio includes $1,358,483, $20,187, $1,616, $43,378 and $2,530,161 respectively, of refunds received as a result of European Union dividend withholding tax reclaim filings. The amount of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $3,036,462, $127,165, $352,959, $31,878 and $9,251,211 respectively. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
Annual Report 195
| For the Year Ended December 31, 2023 | Lazard Managed Equity Volatility Portfolio | Lazard US Equity Concentrated Portfolio | ||||||||||
| Investment Income (Loss) | ||||||||||||
| Income | ||||||||||||
| Dividends# | $ | 621,252 | $ | 9,345,764 | ||||||||
| Non-cash income | — | — | ||||||||||
| Total investment income* | 621,252 | 9,345,764 | ||||||||||
| Expenses | ||||||||||||
| Management fees (Note 3) | 137,275 | 4,783,199 | ||||||||||
| Custodian fees | 47,358 | 171,334 | ||||||||||
| Professional services | 45,071 | 117,478 | ||||||||||
| Shareholders’ reports | 8,449 | 104,847 | ||||||||||
| Administration fees | 20,146 | 101,197 | ||||||||||
| Shareholders’ services | 11,772 | 75,189 | ||||||||||
| Directors’ fees and expenses | 6,799 | 73,513 | ||||||||||
| Distribution fees (Open Shares) | 208 | 61,030 | ||||||||||
| Registration fees | 33,149 | 53,826 | ||||||||||
| Other^ | 8,048 | 61,242 | ||||||||||
| Total gross expenses | 318,275 | 5,602,855 | ||||||||||
| Management fees waived and expenses reimbursed | (144,096 | ) | (927 | ) | ||||||||
| Total net expenses | 174,179 | 5,601,928 | ||||||||||
| Net investment income (loss) | 447,073 | 3,743,836 | ||||||||||
| Net Realized and Unrealized Gain (Loss) | ||||||||||||
| Net realized gain (loss) on: | ||||||||||||
| Investments | 1,253,767 | 268,247,181 | ||||||||||
| Foreign currency transactions | (7,971 | ) | — | |||||||||
| Forward currency contracts | 470 | — | ||||||||||
| Total net realized gain (loss) | 1,246,266 | 268,247,181 | ||||||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||||
| Investments | (165,068 | ) | (159,593,563 | ) | ||||||||
| Foreign currency translations | 1,574 | — | ||||||||||
| Total net change in unrealized appreciation (depreciation) | (163,494 | ) | (159,593,563 | ) | ||||||||
| Net realized and unrealized gain (loss) | 1,082,772 | 108,653,618 | ||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 1,529,845 | $ | 112,397,454 | ||||||||
| *# | Net of foreign withholding taxes of | $ | 28,306 | $ | — | |||||||
| ^ | Includes interest on line of credit of | $ | 2,221 | $ | 33,004 | |||||||
| # | Dividend income for Lazard Managed Equity Volatility Portfolio includes $532 of refunds received as a result of European Union dividend withholding tax reclaim filings. The amount of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $28,838. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
The accompanying notes are an integral part of these financial statements.
196 Annual Report
| Lazard US Equity Focus Portfolio | Lazard US Small Cap Equity Select Portfolio | Lazard US Sustainable Equity Portfolio | Lazard US Systematic Small Cap Equity Portfolio | |||||||||||||
| $ | 1,371,937 | $ | 433,327 | $ | 224,391 | $ | 394,088 | |||||||||
| — | — | — | 22,175 | |||||||||||||
| 1,371,937 | 433,327 | 224,391 | 416,263 | |||||||||||||
| 462,358 | 301,289 | 87,159 | 203,717 | |||||||||||||
| 53,245 | 49,842 | 30,811 | 77,171 | |||||||||||||
| 47,883 | 45,226 | 42,927 | 43,904 | |||||||||||||
| 12,156 | 12,618 | 9,070 | 5,213 | |||||||||||||
| 27,795 | 22,308 | 19,102 | 20,924 | |||||||||||||
| 17,995 | 16,093 | 10,954 | 13,318 | |||||||||||||
| 10,584 | 7,742 | 5,932 | 6,817 | |||||||||||||
| 2,831 | 18,573 | 1,364 | 286 | |||||||||||||
| 35,138 | 45,039 | 34,023 | 33,436 | |||||||||||||
| 9,224 | 6,965 | 5,531 | 2,863 | |||||||||||||
| 679,209 | 525,695 | 246,873 | 407,649 | |||||||||||||
| (86,867 | ) | (95,033 | ) | (136,426 | ) | (145,212 | ) | |||||||||
| 592,342 | 430,662 | 110,447 | 262,437 | |||||||||||||
| 779,595 | 2,665 | 113,944 | 153,826 | |||||||||||||
| 694,662 | 4,362,487 | 415,321 | (1,034,076 | ) | ||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| 694,662 | 4,362,487 | 415,321 | (1,034,076 | ) | ||||||||||||
| 14,121,034 | (581,717 | ) | 1,434,058 | 6,868,729 | ||||||||||||
| — | — | — | — | |||||||||||||
| 14,121,034 | (581,717 | ) | 1,434,058 | 6,868,729 | ||||||||||||
| 14,815,696 | 3,780,770 | 1,849,379 | 5,834,653 | |||||||||||||
| $ | 15,595,291 | $ | 3,783,435 | $ | 1,963,323 | $ | 5,988,479 | |||||||||
| $ | — | $ | 223 | $ | — | $ | 2,547 | |||||||||
| $ | 327 | $ | — | $ | — | $ | — | |||||||||
Annual Report 197
The Lazard Funds, Inc. Statements of Changes in Net Assets
| Lazard Developing Markets Equity Portfolio | |||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 2,160,467 | $ | 1,208,133 | |||||
| Net realized gain (loss) | (5,549,218 | ) | (5,520,306 | ) | |||||
| Net change in unrealized appreciation (depreciation) | 11,775,330 | (29,626,365 | ) | ||||||
| Net increase (decrease) in net assets resulting from operations | 8,386,579 | (33,938,538 | ) | ||||||
| Distributions to shareholders (Note 2(e)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (1,908,309 | ) | (707,448 | ) | |||||
| Open Shares | (112,978 | ) | (29,962 | ) | |||||
| R6 Shares | — | — | |||||||
| Return of capital | |||||||||
| Institutional Shares | — | (60,003 | ) | ||||||
| Open Shares | — | (2,541 | ) | ||||||
| Net decrease in net assets resulting from distributions | (2,021,287 | ) | (799,954 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 15,288,853 | 22,986,526 | |||||||
| Open Shares | 1,200,836 | 1,330,724 | |||||||
| R6 Shares | — | — | |||||||
| Issued in connection with acquisition of Emerging Markets Strategic Equity Portfolio | |||||||||
| Institutional Shares | — | — | |||||||
| Open Shares | — | — | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 1,637,186 | 635,859 | |||||||
| Open Shares | 102,420 | 28,854 | |||||||
| R6 Shares | — | — | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (28,128,807 | ) | (47,316,675 | ) | |||||
| Open Shares | (1,461,157 | ) | (3,142,059 | ) | |||||
| R6 Shares | — | — | |||||||
| Net increase (decrease) in net assets from capital stock transactions | (11,360,669 | ) | (25,476,771 | ) | |||||
| Total increase (decrease) in net assets | (4,995,377 | ) | (60,215,263 | ) | |||||
| Net assets at beginning of period | 97,397,568 | 157,612,831 | |||||||
| Net assets at end of period | $ | 92,402,191 | $ | 97,397,568 | |||||
| Shares issued and redeemed Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 7,777,673 | 9,637,932 | |||||||
| Shares sold | 1,226,526 | 1,776,812 | |||||||
| Shares issued in connection with acquisition of Emerging Markets Strategic Equity Portfolio | — | — | |||||||
| Shares issued to shareholders from reinvestment of distributions | 131,819 | 53,569 | |||||||
| Shares redeemed | (2,289,927 | ) | (3,690,640 | ) | |||||
| Net increase (decrease) | (931,582 | ) | (1,860,259 | ) | |||||
| Shares outstanding at end of period | 6,846,091 | 7,777,673 | |||||||
The accompanying notes are an integral part of these financial statements.
198 Annual Report
| Lazard Emerging Markets Core Equity Portfolio | Lazard Emerging Markets Equity Advantage Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| $ | 2,031,347 | $ | 2,077,849 | $ | 2,665,011 | $ | 1,722,206 | |||||||||
| (5,549,591 | ) | (3,899,342 | ) | (2,105,805 | ) | (15,096,252 | ) | |||||||||
| 14,714,214 | (31,035,512 | ) | 11,530,947 | (1,482,062 | ) | |||||||||||
| 11,195,970 | (32,857,005 | ) | 12,090,153 | (14,856,108 | ) | |||||||||||
| (1,747,412 | ) | (1,910,920 | ) | (2,475,435 | ) | (1,903,988 | ) | |||||||||
| (29,424 | ) | (28,218 | ) | (4,336 | ) | (3,123 | ) | |||||||||
| (2,429 | ) | (7,388 | ) | (2,937 | ) | — | ||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| (1,779,265 | ) | (1,946,526 | ) | (2,482,708 | ) | (1,907,111 | ) | |||||||||
| 17,889,582 | 34,798,642 | 73,099,826 | 81,225,276 | |||||||||||||
| 724,536 | 1,088,647 | 3,221,041 | 34,560 | |||||||||||||
| 67,262 | 109,702 | 142,557 | — | |||||||||||||
| 42,695,854 | — | — | — | |||||||||||||
| 2,423,804 | — | — | — | |||||||||||||
| 1,705,354 | 1,842,661 | 2,461,896 | 1,895,534 | |||||||||||||
| 27,976 | 26,946 | 4,336 | 3,123 | |||||||||||||
| 2,429 | 7,388 | 2,937 | — | |||||||||||||
| (48,631,628 | ) | (65,949,462 | ) | (33,764,842 | ) | (54,457,517 | ) | |||||||||
| (2,464,925 | ) | (1,323,071 | ) | (3,108,971 | ) | (855,669 | ) | |||||||||
| (286,110 | ) | (1,534 | ) | — | — | |||||||||||
| 14,154,134 | (29,400,081 | ) | 42,058,780 | 27,845,307 | ||||||||||||
| 23,570,839 | (64,203,612 | ) | 51,666,225 | 11,082,088 | ||||||||||||
| 94,504,036 | 158,707,648 | 80,599,389 | 69,517,301 | |||||||||||||
| $ | 118,074,875 | $ | 94,504,036 | $ | 132,265,614 | $ | 80,599,389 | |||||||||
| 10,455,241 | 13,520,650 | 8,186,529 | 5,322,452 | |||||||||||||
| 1,881,992 | 3,561,761 | 6,915,914 | 8,040,599 | |||||||||||||
| 4,364,112 | — | — | — | |||||||||||||
| 176,893 | 207,099 | 231,119 | 190,232 | |||||||||||||
| (5,091,153 | ) | (6,834,269 | ) | (3,204,905 | ) | (5,366,754 | ) | |||||||||
| 1,331,844 | (3,065,409 | ) | 3,942,128 | 2,864,077 | ||||||||||||
| 11,787,085 | 10,455,241 | 12,128,657 | 8,186,529 | |||||||||||||
Annual Report 199
| Lazard Developing Markets Equity Portfolio | |||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 467,111 | 600,534 | |||||||
| Shares sold | 96,455 | 107,434 | |||||||
| Shares issued in connection with acquisition of Emerging Markets Strategic Equity Portfolio | — | — | |||||||
| Shares issued to shareholders from reinvestment of distributions | 8,293 | 2,445 | |||||||
| Shares redeemed | (118,800 | ) | (243,302 | ) | |||||
| Net increase (decrease) | (14,052 | ) | (133,423 | ) | |||||
| Shares outstanding at end of period | 453,059 | 467,111 | |||||||
| R6 Shares† | |||||||||
| Shares outstanding at beginning of period | — | — | |||||||
| Shares sold | — | — | |||||||
| Shares issued to shareholders from reinvestment of distributions | — | — | |||||||
| Shares redeemed | — | — | |||||||
| Net increase (decrease) | — | — | |||||||
| Shares outstanding at end of period | — | — | |||||||
| † | The inception date for the Lazard Emerging Markets Equity Advantage Portfolio R6 Shares was February 22, 2023. |
The accompanying notes are an integral part of these financial statements.
200 Annual Report
| Lazard Emerging Markets Core Equity Portfolio | Lazard Emerging Markets Equity Advantage Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| 161,234 | 183,190 | 9,443 | 76,021 | |||||||||||||
| 76,445 | 112,096 | 310,575 | 2,836 | |||||||||||||
| 248,585 | — | — | — | |||||||||||||
| 2,909 | 3,036 | 407 | 312 | |||||||||||||
| (256,141 | ) | (137,088 | ) | (296,709 | ) | (69,726 | ) | |||||||||
| 71,798 | (21,956 | ) | 14,273 | (66,578 | ) | |||||||||||
| 233,032 | 161,234 | 23,716 | 9,443 | |||||||||||||
| 39,040 | 26,865 | — | — | |||||||||||||
| 6,943 | 11,507 | 13,660 | — | |||||||||||||
| 252 | 830 | 276 | — | |||||||||||||
| (29,892 | ) | (162 | ) | — | — | |||||||||||
| (22,697 | ) | 12,175 | 13,936 | — | ||||||||||||
| 16,343 | 39,040 | 13,936 | — | |||||||||||||
Annual Report 201
| Lazard Emerging Markets Equity Portfolio | |||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 107,523,113 | $ | 146,593,998 | |||||
| Net realized gain (loss) | 102,179,056 | (115,693,889 | ) | ||||||
| Net change in unrealized appreciation (depreciation) | 320,953,965 | (557,415,838 | ) | ||||||
| Net increase (decrease) in net assets resulting from operations | 530,656,134 | (526,515,729 | ) | ||||||
| Distributions to shareholders (Note 2(e)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (86,836,785 | ) | (130,416,173 | ) | |||||
| Open Shares | (9,235,492 | ) | (13,490,474 | ) | |||||
| R6 Shares | (1,001,599 | ) | (437,125 | ) | |||||
| Net decrease in net assets resulting from distributions | (97,073,876 | ) | (144,343,772 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 591,291,086 | 861,849,990 | |||||||
| Open Shares | 24,905,149 | 18,453,232 | |||||||
| R6 Shares | 18,877,987 | 1,763,892 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 82,471,722 | 125,423,797 | |||||||
| Open Shares | 9,105,594 | 13,288,409 | |||||||
| R6 Shares | 261,291 | 286,165 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (949,812,499 | ) | (1,376,698,620 | ) | |||||
| Open Shares | (53,071,749 | ) | (83,795,159 | ) | |||||
| R6 Shares | (1,587,355 | ) | (2,202,333 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | (277,558,774 | ) | (441,630,627 | ) | |||||
| Total increase (decrease) in net assets | 156,023,484 | (1,112,490,128 | ) | ||||||
| Net assets at beginning of period | 2,540,427,852 | 3,652,917,980 | |||||||
| Net assets at end of period | $ | 2,696,451,336 | $ | 2,540,427,852 | |||||
The accompanying notes are an integral part of these financial statements.
202 Annual Report
| Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| $ | 2,703,153 | $ | 1,626,573 | $ | 741,460 | $ | 572,221 | |||||||||
| 10,532,318 | 13,818,112 | 1,146,565 | 1,040,326 | |||||||||||||
| 14,299,060 | (17,193,783 | ) | 12,968,538 | (21,692,108 | ) | |||||||||||
| 27,534,531 | (1,749,098 | ) | 14,856,563 | (20,079,561 | ) | |||||||||||
| (9,472,152 | ) | (17,924,812 | ) | (1,808,406 | ) | (923,404 | ) | |||||||||
| (14,250 | ) | (22,496 | ) | (19,152 | ) | (9,233 | ) | |||||||||
| — | — | — | — | |||||||||||||
| (9,486,402 | ) | (17,947,308 | ) | (1,827,558 | ) | (932,637 | ) | |||||||||
| 17,269,375 | 103,212,766 | 5,356,966 | 17,480,453 | |||||||||||||
| 175,590 | 262,175 | 639,010 | 274,863 | |||||||||||||
| — | — | — | — | |||||||||||||
| 9,472,152 | 17,923,480 | 1,764,122 | 907,395 | |||||||||||||
| 14,250 | 22,496 | 18,841 | 9,199 | |||||||||||||
| — | — | — | — | |||||||||||||
| (85,956,915 | ) | (47,036,929 | ) | (14,561,651 | ) | (16,294,375 | ) | |||||||||
| (224,473 | ) | (154,997 | ) | (905,741 | ) | (293,755 | ) | |||||||||
| — | — | — | — | |||||||||||||
| (59,250,021 | ) | 74,228,991 | (7,688,453 | ) | 2,083,780 | |||||||||||
| (41,201,892 | ) | 54,532,585 | 5,340,552 | (18,928,418 | ) | |||||||||||
| 160,054,156 | 105,521,571 | 92,557,568 | 111,485,986 | |||||||||||||
| $ | 118,852,264 | $ | 160,054,156 | $ | 97,898,120 | $ | 92,557,568 | |||||||||
Annual Report 203
| Lazard Emerging Markets Equity Portfolio | |||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 156,565,118 | 180,498,233 | |||||||
| Shares sold | 36,823,067 | 54,007,278 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 4,920,747 | 8,549,679 | |||||||
| Shares redeemed | (58,880,517 | ) | (86,490,072 | ) | |||||
| Net increase (decrease) | (17,136,703 | ) | (23,933,115 | ) | |||||
| Shares outstanding at end of period | 139,428,415 | 156,565,118 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 16,682,124 | 19,885,383 | |||||||
| Shares sold | 1,484,896 | 1,102,283 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 524,818 | 875,966 | |||||||
| Shares redeemed | (3,163,011 | ) | (5,181,508 | ) | |||||
| Net increase (decrease) | (1,153,297 | ) | (3,203,259 | ) | |||||
| Shares outstanding at end of period | 15,528,827 | 16,682,124 | |||||||
| R6 Shares | |||||||||
| Shares outstanding at beginning of period | 548,994 | 544,810 | |||||||
| Shares sold | 1,121,981 | 113,210 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 15,581 | 19,494 | |||||||
| Shares redeemed | (98,620 | ) | (128,520 | ) | |||||
| Net increase (decrease) | 1,038,942 | 4,184 | |||||||
| Shares outstanding at end of period | 1,587,936 | 548,994 | |||||||
The accompanying notes are an integral part of these financial statements.
204 Annual Report
| Lazard Equity Franchise Portfolio | Lazard Global Equity Select Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| 17,653,491 | 9,780,445 | 5,938,494 | 5,857,479 | |||||||||||||
| 1,782,584 | 10,269,246 | 327,199 | 1,063,144 | |||||||||||||
| 964,578 | 1,943,345 | 101,916 | 59,230 | |||||||||||||
| (8,397,961 | ) | (4,339,545 | ) | (887,258 | ) | (1,041,359 | ) | |||||||||
| (5,650,799 | ) | 7,873,046 | (458,143 | ) | 81,015 | |||||||||||
| 12,002,692 | 17,653,491 | 5,480,351 | 5,938,494 | |||||||||||||
| 21,010 | 8,621 | 81,524 | 82,179 | |||||||||||||
| 17,758 | 25,489 | 39,169 | 17,597 | |||||||||||||
| 1,451 | 2,436 | 1,091 | 600 | |||||||||||||
| (22,337 | ) | (15,536 | ) | (54,800 | ) | (18,852 | ) | |||||||||
| (3,128 | ) | 12,389 | (14,540 | ) | (655 | ) | ||||||||||
| 17,882 | 21,010 | 66,984 | 81,524 | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | — | — | |||||||||||||
Annual Report 205
| Lazard Global Listed Infrastructure Portfolio | |||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 253,607,144 | $ | 208,102,375 | |||||
| Net realized gain (loss) | 59,814,576 | 322,905,118 | |||||||
| Net change in unrealized appreciation (depreciation) | 549,353,390 | (665,672,455 | ) | ||||||
| Net increase (decrease) in net assets resulting from operations | 862,775,110 | (134,664,962 | ) | ||||||
| Distributions to shareholders (Note 2(e)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (248,027,505 | ) | (1,060,685,044 | ) | |||||
| Open Shares | (8,009,207 | ) | (45,255,213 | ) | |||||
| R6 Shares | — | — | |||||||
| Return of capital | |||||||||
| Net decrease in net assets resulting from distributions | (256,036,712 | ) | (1,105,940,257 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 2,182,513,951 | 3,221,367,011 | |||||||
| Open Shares | 64,066,364 | 165,287,456 | |||||||
| R6 Shares | — | — | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 211,785,959 | 921,958,886 | |||||||
| Open Shares | 7,849,761 | 44,558,966 | |||||||
| R6 Shares | — | — | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (2,376,975,688 | ) | (2,475,584,828 | ) | |||||
| Open Shares | (146,443,340 | ) | (120,448,379 | ) | |||||
| R6 Shares | — | — | |||||||
| Net increase (decrease) in net assets from capital stock transactions | (57,202,993 | ) | 1,757,139,112 | ||||||
| Total increase (decrease) in net assets | 549,535,405 | 516,533,893 | |||||||
| Net assets at beginning of period | 8,125,421,621 | 7,608,887,728 | |||||||
| Net assets at end of period | $ | 8,674,957,026 | $ | 8,125,421,621 | |||||
The accompanying notes are an integral part of these financial statements.
206 Annual Report
| Lazard Global Strategic Equity Portfolio | Lazard International Equity Advantage Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| $ | 78,163 | $ | 49,494 | $ | 82,991 | $ | 77,083 | |||||||||
| (164,570 | ) | (467,377 | ) | 187,992 | (219,539 | ) | ||||||||||
| 1,655,474 | (2,950,697 | ) | 520,663 | (262,247 | ) | |||||||||||
| 1,569,067 | (3,368,580 | ) | 791,646 | (404,703 | ) | |||||||||||
| (45,587 | ) | (65,039 | ) | (19,149 | ) | (87,197 | ) | |||||||||
| (26 | ) | (462 | ) | (58,030 | ) | (3,876 | ) | |||||||||
| — | — | — | — | |||||||||||||
| (45,613 | ) | (65,501 | ) | (77,179 | ) | (91,073 | ) | |||||||||
| 105,794 | 23,595 | 128,704 | 6,179 | |||||||||||||
| 2,012 | 2,503 | 16,058,495 | 1 | |||||||||||||
| — | — | — | — | |||||||||||||
| 45,587 | 65,039 | 19,149 | 87,197 | |||||||||||||
| 26 | 462 | 58,030 | 3,876 | |||||||||||||
| — | — | — | — | |||||||||||||
| (1,241,359 | ) | (3,755,240 | ) | — | (30,940 | ) | ||||||||||
| (175,681 | ) | — | (118,775 | ) | — | |||||||||||
| — | — | — | — | |||||||||||||
| (1,263,621 | ) | (3,663,641 | ) | 16,145,603 | 66,313 | |||||||||||
| 259,833 | (7,097,722 | ) | 16,860,070 | (429,463 | ) | |||||||||||
| 10,614,191 | 17,711,913 | 2,560,666 | 2,990,129 | |||||||||||||
| $ | 10,874,024 | $ | 10,614,191 | $ | 19,420,736 | $ | 2,560,666 | |||||||||
Annual Report 207
| Lazard Global Listed Infrastructure Portfolio | |||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 548,675,033 | 442,920,557 | |||||||
| Shares sold | 147,779,765 | 200,638,035 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 14,244,720 | 62,415,191 | |||||||
| Shares redeemed | (161,614,429 | ) | (157,298,750 | ) | |||||
| Net increase (decrease) | 410,056 | 105,754,476 | |||||||
| Shares outstanding at end of period | 549,085,089 | 548,675,033 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 23,667,566 | 18,194,277 | |||||||
| Shares sold | 4,327,005 | 10,096,310 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 527,750 | 3,013,473 | |||||||
| Shares redeemed | (9,920,619 | ) | (7,636,494 | ) | |||||
| Net increase (decrease) | (5,065,864 | ) | 5,473,289 | ||||||
| Shares outstanding at end of period | 18,601,702 | 23,667,566 | |||||||
The accompanying notes are an integral part of these financial statements.
208 Annual Report
| Lazard Global Strategic Equity Portfolio | Lazard International Equity Advantage Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| 960,139 | 1,297,363 | 261,804 | 255,051 | |||||||||||||
| 9,135 | 2,146 | 13,193 | 606 | |||||||||||||
| 3,659 | 5,923 | 1,753 | 9,310 | |||||||||||||
| (106,137 | ) | (345,293 | ) | — | (3,163 | ) | ||||||||||
| (93,343 | ) | (337,224 | ) | 14,946 | 6,753 | |||||||||||
| 866,796 | 960,139 | 276,750 | 261,804 | |||||||||||||
| 16,012 | 15,713 | 12,488 | 12,075 | |||||||||||||
| 173 | 258 | 1,462,656 | — | # | ||||||||||||
| 2 | 41 | 5,290 | 413 | |||||||||||||
| (15,003 | ) | — | (10,819 | ) | — | |||||||||||
| (14,828 | ) | 299 | 1,457,127 | 413 | ||||||||||||
| 1,184 | 16,012 | 1,469,615 | 12,488 | |||||||||||||
| # | Shares values are less than 1 |
Annual Report 209
| Lazard International Equity Portfolio | |||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 23,453,786 | $ | 25,018,724 | |||||
| Net realized gain (loss) | 39,855,828 | (18,115,840 | ) | ||||||
| Net change in unrealized appreciation (depreciation) | 99,118,333 | (273,283,955 | ) | ||||||
| Net increase (decrease) in net assets resulting from operations | 162,427,947 | (266,381,071 | ) | ||||||
| Distributions to shareholders (Note 2(e)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (37,659,905 | ) | (62,703,347 | ) | |||||
| Open Shares | (1,945,816 | ) | (3,381,347 | ) | |||||
| R6 Shares | (2,733,396 | ) | (3,944,721 | ) | |||||
| Return of capital | |||||||||
| Net decrease in net assets resulting from distributions | (42,339,117 | ) | (70,029,415 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 260,202,030 | 231,789,310 | |||||||
| Open Shares | 9,246,783 | 16,567,209 | |||||||
| R6 Shares | 28,652,330 | 17,349,084 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 33,034,781 | 53,823,523 | |||||||
| Open Shares | 1,833,815 | 3,000,121 | |||||||
| R6 Shares | 2,573,712 | 3,868,531 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (254,189,967 | ) | (685,382,215 | ) | |||||
| Open Shares | (15,383,156 | ) | (41,438,157 | ) | |||||
| R6 Shares | (28,481,260 | ) | (52,432,233 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | 37,489,068 | (452,854,827 | ) | ||||||
| Total increase (decrease) in net assets | 157,577,898 | (789,265,313 | ) | ||||||
| Net assets at beginning of period | 987,228,382 | 1,776,493,695 | |||||||
| Net assets at end of period | $ | 1,144,806,280 | $ | 987,228,382 | |||||
The accompanying notes are an integral part of these financial statements.
210 Annual Report
| Lazard International Equity Select Portfolio | Lazard International Quality Growth Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| $ | 867,534 | $ | 1,028,738 | $ | 1,684,623 | $ | 783,238 | |||||||||
| 1,172,572 | (3,536,840 | ) | (817,423 | ) | (6,290,271 | ) | ||||||||||
| 4,190,695 | (10,331,812 | ) | 29,689,073 | (13,649,212 | ) | |||||||||||
| 6,230,801 | (12,839,914 | ) | 30,556,273 | (19,156,245 | ) | |||||||||||
| (742,947 | ) | (1,170,958 | ) | (1,575,320 | ) | (1,289,849 | ) | |||||||||
| (35,111 | ) | (56,701 | ) | (6,587 | ) | (2,960 | ) | |||||||||
| — | — | (3,470 | ) | — | ||||||||||||
| (778,058 | ) | (1,227,659 | ) | (1,585,377 | ) | (1,292,809 | ) | |||||||||
| 6,870,927 | 12,959,753 | 145,309,254 | 123,139,916 | |||||||||||||
| 635,307 | 900,081 | 1,984,516 | 123,452 | |||||||||||||
| — | — | 510,000 | — | |||||||||||||
| 676,941 | 1,124,727 | 1,549,820 | 1,280,322 | |||||||||||||
| 34,436 | 55,731 | 6,587 | 2,960 | |||||||||||||
| — | — | 75 | — | |||||||||||||
| (13,779,012 | ) | (27,840,410 | ) | (30,694,205 | ) | (55,785,156 | ) | |||||||||
| (1,000,063 | ) | (1,527,246 | ) | (804,356 | ) | (18,580 | ) | |||||||||
| — | — | — | — | |||||||||||||
| (6,561,464 | ) | (14,327,364 | ) | 117,861,691 | 68,742,914 | |||||||||||
| (1,108,721 | ) | (28,394,937 | ) | 146,832,587 | 48,293,860 | |||||||||||
| 54,552,672 | 82,947,609 | 111,095,066 | 62,801,206 | |||||||||||||
| $ | 53,443,951 | $ | 54,552,672 | $ | 257,927,653 | $ | 111,095,066 | |||||||||
Annual Report 211
| Lazard International Equity Portfolio | |||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 60,292,364 | 87,137,715 | |||||||
| Shares sold | 16,573,255 | 14,992,421 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 2,064,288 | 3,670,842 | |||||||
| Shares redeemed | (16,151,056 | ) | (45,508,614 | ) | |||||
| Net increase (decrease) | 2,486,487 | (26,845,351 | ) | ||||||
| Shares outstanding at end of period | 62,778,851 | 60,292,364 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 3,743,668 | 5,114,581 | |||||||
| Shares sold | 580,947 | 1,084,863 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 112,843 | 201,768 | |||||||
| Shares redeemed | (976,060 | ) | (2,657,544 | ) | |||||
| Net increase (decrease) | (282,270 | ) | (1,370,913 | ) | |||||
| Shares outstanding at end of period | 3,461,398 | 3,743,668 | |||||||
| R6 Shares(a) | |||||||||
| Shares outstanding at beginning of period | 4,410,047 | 6,472,435 | |||||||
| Shares sold | 1,839,166 | 1,082,972 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 161,240 | 264,440 | |||||||
| Shares redeemed | (1,850,406 | ) | (3,409,800 | ) | |||||
| Net increase (decrease) | 150,000 | (2,062,388 | ) | ||||||
| Shares outstanding at end of period | 4,560,047 | 4,410,047 | |||||||
| (a) | The inception date for the Lazard International Quality Growth Portfolio R6 Shares was February 22, 2023. |
The accompanying notes are an integral part of these financial statements.
212 Annual Report
| Lazard International Equity Select Portfolio | Lazard International Quality Growth Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| 5,427,143 | 6,846,470 | 8,337,316 | 3,718,473 | |||||||||||||
| 677,833 | 1,281,616 | 10,153,993 | 8,546,737 | |||||||||||||
| 65,091 | 117,646 | 100,507 | 96,628 | |||||||||||||
| (1,354,597 | ) | (2,818,589 | ) | (2,149,994 | ) | (4,024,522 | ) | |||||||||
| (611,673 | ) | (1,419,327 | ) | 8,104,506 | 4,618,843 | |||||||||||
| 4,815,470 | 5,427,143 | 16,441,822 | 8,337,316 | |||||||||||||
| 304,184 | 360,195 | 28,191 | 19,946 | |||||||||||||
| 63,064 | 87,983 | 140,256 | 9,406 | |||||||||||||
| 3,292 | 5,796 | 430 | 225 | |||||||||||||
| (98,350 | ) | (149,790 | ) | (55,429 | ) | (1,386 | ) | |||||||||
| (31,994 | ) | (56,011 | ) | 85,257 | 8,245 | |||||||||||
| 272,190 | 304,184 | 113,448 | 28,191 | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | 33,246 | — | |||||||||||||
| — | — | 5 | — | |||||||||||||
| — | — | — | — | |||||||||||||
| — | — | 33,251 | — | |||||||||||||
| — | — | 33,251 | — | |||||||||||||
Annual Report 213
| Lazard International Small Cap Equity Portfolio | |||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
| Increase (Decrease) in Net Assets | |||||||||||
| Operations | |||||||||||
| Net investment income (loss) | $ | 237,918 | $ | 309,711 | |||||||
| Net realized gain (loss) | (222,900 | ) | (1,611,673 | ) | |||||||
| Net change in unrealized appreciation (depreciation) | 1,438,711 | (5,619,766 | ) | ||||||||
| Net increase (decrease) in net assets resulting from operations | 1,453,729 | (6,921,728 | ) | ||||||||
| Distributions to shareholders (Note 2(e)) | |||||||||||
| Net investment income and net realized gains | |||||||||||
| Institutional Shares | (99,912 | ) | (491,400 | ) | |||||||
| Open Shares | (132,326 | ) | (416,934 | ) | |||||||
| R6 Shares | — | — | |||||||||
| Return of capital | |||||||||||
| Net decrease in net assets resulting from distributions | (232,238 | ) | (908,334 | ) | |||||||
| Capital stock transactions | |||||||||||
| Net proceeds from sales | |||||||||||
| Institutional Shares | 561,590 | 3,781,732 | |||||||||
| Open Shares | 160,359 | 3,039,558 | |||||||||
| R6 Shares | — | — | |||||||||
| Net proceeds from reinvestment of distributions | |||||||||||
| Institutional Shares | 93,978 | 488,585 | |||||||||
| Open Shares | 130,340 | 410,676 | |||||||||
| R6 Shares | — | — | |||||||||
| Cost of shares redeemed | |||||||||||
| Institutional Shares | (3,361,348 | ) | (7,824,261 | ) | |||||||
| Open Shares | (1,386,790 | ) | (3,944,613 | ) | |||||||
| R6 Shares | — | — | |||||||||
| Net increase (decrease) in net assets from capital stock transactions | (3,801,871 | ) | (4,048,323 | ) | |||||||
| Total increase (decrease) in net assets | (2,580,380 | ) | (11,878,385 | ) | |||||||
| Net assets at beginning of period | 14,632,313 | 26,510,698 | |||||||||
| Net assets at end of period | $ | 12,051,933 | $ | 14,632,313 | |||||||
The accompanying notes are an integral part of these financial statements.
214 Annual Report
| Lazard International Strategic Equity Portfolio | Lazard Managed Equity Volatility Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| $ | 64,097,506 | $ | 80,441,570 | $ | 447,073 | $ | 521,781 | |||||||||
| 99,579,684 | (191,251,655 | ) | 1,246,266 | (794,341 | ) | |||||||||||
| 531,860,320 | (957,247,512 | ) | (163,494 | ) | (1,836,469 | ) | ||||||||||
| 695,537,510 | (1,068,057,597 | ) | 1,529,845 | (2,109,029 | ) | |||||||||||
| (57,582,065 | ) | (58,103,198 | ) | (708,488 | ) | (857,387 | ) | |||||||||
| (3,686,018 | ) | (3,427,089 | ) | (3,164 | ) | (2,173 | ) | |||||||||
| (1,178,086 | ) | (1,330,359 | ) | — | — | |||||||||||
| (62,446,169 | ) | (62,860,646 | ) | (711,652 | ) | (859,560 | ) | |||||||||
| 368,552,510 | 777,632,896 | 4,483,027 | 2,791,357 | |||||||||||||
| 36,677,838 | 66,219,213 | — | 27 | |||||||||||||
| 13,812,019 | 5,029,916 | — | — | |||||||||||||
| 54,605,767 | 53,856,863 | 500,959 | 739,992 | |||||||||||||
| 3,464,545 | 3,161,280 | 3,164 | 2,173 | |||||||||||||
| 1,100,618 | 1,318,843 | — | — | |||||||||||||
| (1,230,081,524 | ) | (1,333,389,496 | ) | (16,617,576 | ) | (2,898,965 | ) | |||||||||
| (81,113,168 | ) | (144,164,460 | ) | — | (24 | ) | ||||||||||
| (47,529,882 | ) | (12,251,456 | ) | — | — | |||||||||||
| (880,511,277 | ) | (582,586,401 | ) | (11,630,426 | ) | 634,560 | ||||||||||
| (247,419,936 | ) | (1,713,504,644 | ) | (10,812,233 | ) | (2,334,029 | ) | |||||||||
| 4,585,388,306 | 6,298,892,950 | 28,793,547 | 31,127,576 | |||||||||||||
| $ | 4,337,968,370 | $ | 4,585,388,306 | $ | 17,981,314 | $ | 28,793,547 | |||||||||
Annual Report 215
| Lazard International Small Cap Equity Portfolio | |||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
| Shares issued and redeemed | |||||||||||
| Institutional Shares | |||||||||||
| Shares outstanding at beginning of period | 902,119 | 1,322,884 | |||||||||
| Shares sold | 68,767 | 457,072 | |||||||||
| Shares issued to shareholders from reinvestment of distributions | 11,419 | 61,362 | |||||||||
| Shares redeemed | (409,534 | ) | (939,199 | ) | |||||||
| Net increase (decrease) | (329,348 | ) | (420,765 | ) | |||||||
| Shares outstanding at end of period | 572,771 | 902,119 | |||||||||
| Open Shares | |||||||||||
| Shares outstanding at beginning of period | 996,438 | 1,085,347 | |||||||||
| Shares sold | 19,698 | 356,944 | |||||||||
| Shares issued to shareholders from reinvestment of distributions | 15,791 | 51,468 | |||||||||
| Shares redeemed | (172,702 | ) | (497,321 | ) | |||||||
| Net increase (decrease) | (137,213 | ) | (88,909 | ) | |||||||
| Shares outstanding at end of period | 859,225 | 996,438 | |||||||||
| R6 Shares | |||||||||||
| Shares outstanding at beginning of period | — | — | |||||||||
| Shares sold | — | — | |||||||||
| Shares issued to shareholders from reinvestment of distributions | — | — | |||||||||
| Shares redeemed | — | — | |||||||||
| Net increase (decrease) | — | — | |||||||||
| Shares outstanding at end of period | — | — | |||||||||
The accompanying notes are an integral part of these financial statements.
216 Annual Report
| Lazard International Strategic Equity Portfolio | Lazard Managed Equity Volatility Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| 311,507,437 | 349,026,972 | 2,406,396 | 2,357,213 | |||||||||||||
| 25,390,697 | 54,862,222 | 365,130 | 229,042 | |||||||||||||
| 3,579,404 | 4,019,169 | 41,116 | 61,309 | |||||||||||||
| (85,241,519 | ) | (96,400,926 | ) | (1,362,337 | ) | (241,168 | ) | |||||||||
| (56,271,418 | ) | (37,519,535 | ) | (956,091 | ) | 49,183 | ||||||||||
| 255,236,019 | 311,507,437 | 1,450,305 | 2,406,396 | |||||||||||||
| 22,739,287 | 27,877,105 | 6,810 | 6,629 | |||||||||||||
| 2,517,537 | 4,602,491 | — | 3 | |||||||||||||
| 225,004 | 233,477 | 260 | 180 | |||||||||||||
| (5,602,044 | ) | (9,973,786 | ) | — | (2 | ) | ||||||||||
| (2,859,503 | ) | (5,137,818 | ) | 260 | 181 | |||||||||||
| 19,879,784 | 22,739,287 | 7,070 | 6,810 | |||||||||||||
| 7,185,282 | 7,606,148 | — | — | |||||||||||||
| 972,386 | 362,304 | — | — | |||||||||||||
| 72,151 | 98,274 | — | — | |||||||||||||
| (3,262,112 | ) | (881,444 | ) | — | — | |||||||||||
| (2,217,575 | ) | (420,866 | ) | — | — | |||||||||||
| 4,967,707 | 7,185,282 | — | — | |||||||||||||
Annual Report 217
| Lazard US Equity Concentrated Portfolio | |||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
| Increase (Decrease) in Net Assets | |||||||||||
| Operations | |||||||||||
| Net investment income (loss) | $ | 3,743,836 | $ | 8,762,250 | |||||||
| Net realized gain (loss) | 268,247,181 | 106,367,493 | |||||||||
| Net change in unrealized appreciation (depreciation) | (159,593,563 | ) | (482,242,653 | ) | |||||||
| Net increase (decrease) in net assets resulting from operations | 112,397,454 | (367,112,910 | ) | ||||||||
| Distributions to shareholders (Note 2(e)) | |||||||||||
| Net investment income and net realized gains | |||||||||||
| Institutional Shares | (144,352,473 | ) | (75,915,293 | ) | |||||||
| Open Shares | (12,995,366 | ) | (1,426,093 | ) | |||||||
| R6 Shares | (13,895 | ) | (130,953 | ) | |||||||
| Net decrease in net assets resulting from distributions | (157,361,734 | ) | (77,472,339 | ) | |||||||
| Capital stock transactions | |||||||||||
| Net proceeds from sales | |||||||||||
| Institutional Shares | 126,919,089 | 299,519,389 | |||||||||
| Open Shares | 3,545,869 | 3,057,412 | |||||||||
| R6 Shares | 32,620 | 20,296 | |||||||||
| Net proceeds from reinvestment of distributions | |||||||||||
| Institutional Shares | 129,805,118 | 64,966,405 | |||||||||
| Open Shares | 12,585,093 | 1,380,759 | |||||||||
| R6 Shares | 13,540 | 130,919 | |||||||||
| Cost of shares redeemed | |||||||||||
| Institutional Shares | (1,232,949,054 | ) | (678,550,658 | ) | |||||||
| Open Shares | (9,708,284 | ) | (7,581,357 | ) | |||||||
| R6 Shares | (2,303,659 | ) | (13,811 | ) | |||||||
| Net increase (decrease) in net assets from capital stock transactions | (972,059,668 | ) | (317,070,646 | ) | |||||||
| Total increase (decrease) in net assets | (1,017,023,948 | ) | (761,655,895 | ) | |||||||
| Net assets at beginning of period | 1,219,946,360 | 1,981,602,255 | |||||||||
| Net assets at end of period | $ | 202,922,412 | $ | 1,219,946,360 | |||||||
The accompanying notes are an integral part of these financial statements.
218 Annual Report
| Lazard US Equity Focus Portfolio | Lazard US Small Cap Equity Select Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| $ | 779,595 | $ | 557,094 | $ | 2,665 | $ | (40,138 | ) | ||||||||
| 694,662 | 405,396 | 4,362,487 | 752,825 | |||||||||||||
| 14,121,034 | (16,065,433 | ) | (581,717 | ) | (15,460,669 | ) | ||||||||||
| 15,595,291 | (15,102,943 | ) | 3,783,435 | (14,747,982 | ) | |||||||||||
| (470,014 | ) | (1,030,597 | ) | (2,463,873 | ) | (1,956,102 | ) | |||||||||
| (9,677 | ) | (28,357 | ) | (629,143 | ) | (379,075 | ) | |||||||||
| (505,449 | ) | (934,656 | ) | (2,872 | ) | (45 | ) | |||||||||
| (985,140 | ) | (1,993,610 | ) | (3,095,888 | ) | (2,335,222 | ) | |||||||||
| 2,250,837 | 5,096,150 | 1,187,900 | 6,969,138 | |||||||||||||
| 650 | 4,948 | 174,656 | 2,467,056 | |||||||||||||
| 17,658,966 | 17,385,917 | 12,293 | 31,192 | |||||||||||||
| 465,514 | 1,020,920 | 2,424,303 | 1,912,237 | |||||||||||||
| 9,676 | 28,354 | 612,357 | 364,429 | |||||||||||||
| 504,884 | 933,440 | 2,872 | 45 | |||||||||||||
| (3,948,749 | ) | (2,237,446 | ) | (7,116,628 | ) | (53,469,937 | ) | |||||||||
| (190,555 | ) | (155,508 | ) | (1,227,580 | ) | (3,876,758 | ) | |||||||||
| (12,949,353 | ) | (11,927,508 | ) | (162 | ) | (690,340 | ) | |||||||||
| 3,801,870 | 10,149,267 | (3,929,989 | ) | (46,292,938 | ) | |||||||||||
| 18,412,021 | (6,947,286 | ) | (3,242,442 | ) | (63,376,142 | ) | ||||||||||
| 73,441,623 | 80,388,909 | 42,656,308 | 106,032,450 | |||||||||||||
| $ | 91,853,644 | $ | 73,441,623 | $ | 39,413,866 | $ | 42,656,308 | |||||||||
Annual Report 219
| Lazard US Equity Concentrated Portfolio | |||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
| Shares issued and redeemed | |||||||||||
| Institutional Shares | |||||||||||
| Shares outstanding at beginning of period | 80,188,463 | 98,646,155 | |||||||||
| Shares sold | 8,743,474 | 17,278,360 | |||||||||
| Shares issued to shareholders from reinvestment of distributions | 13,704,015 | 4,122,800 | |||||||||
| Shares redeemed | (81,370,105 | ) | (39,858,852 | ) | |||||||
| Net increase (decrease) | (58,922,616 | ) | (18,457,692 | ) | |||||||
| Shares outstanding at end of period | 21,265,847 | 80,188,463 | |||||||||
| Open Shares | |||||||||||
| Shares outstanding at beginning of period | 1,614,946 | 1,793,445 | |||||||||
| Shares sold | 234,781 | 176,728 | |||||||||
| Shares issued to shareholders from reinvestment of distributions | 1,337,622 | 86,753 | |||||||||
| Shares redeemed | (749,559 | ) | (441,980 | ) | |||||||
| Net increase (decrease) | 822,844 | (178,499 | ) | ||||||||
| Shares outstanding at end of period | 2,437,790 | 1,614,946 | |||||||||
| R6 Shares | |||||||||||
| Shares outstanding at beginning of period | 146,418 | 137,684 | |||||||||
| Shares sold | 2,035 | 1,199 | |||||||||
| Shares issued to shareholders from reinvestment of distributions | 1,427 | 8,321 | |||||||||
| Shares redeemed | (147,079 | ) | (786 | ) | |||||||
| Net increase (decrease) | (143,617 | ) | 8,734 | ||||||||
| Shares outstanding at end of period | 2,801 | 146,418 | |||||||||
The accompanying notes are an integral part of these financial statements.
220 Annual Report
| Lazard US Equity Focus Portfolio | Lazard US Small Cap Equity Select Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| 2,928,944 | 2,660,294 | 2,857,788 | 6,312,789 | |||||||||||||
| 158,205 | 352,454 | 95,109 | 499,222 | |||||||||||||
| 30,466 | 77,763 | 197,364 | 143,892 | |||||||||||||
| (279,222 | ) | (161,567 | ) | (573,097 | ) | (4,098,115 | ) | |||||||||
| (90,551 | ) | 268,650 | (280,624 | ) | (3,455,001 | ) | ||||||||||
| 2,838,393 | 2,928,944 | 2,577,164 | 2,857,788 | |||||||||||||
| 88,816 | 97,056 | 705,847 | 796,285 | |||||||||||||
| 46 | 351 | 15,957 | 200,453 | |||||||||||||
| 630 | 2,145 | 55,981 | 30,447 | |||||||||||||
| (13,913 | ) | (10,736 | ) | (109,987 | ) | (321,338 | ) | |||||||||
| (13,237 | ) | (8,240 | ) | (38,049 | ) | (90,438 | ) | |||||||||
| 75,579 | 88,816 | 667,798 | 705,847 | |||||||||||||
| 2,635,291 | 2,242,997 | 1,936 | 47,929 | |||||||||||||
| 1,324,448 | 1,157,609 | 967 | 2,503 | |||||||||||||
| 33,021 | 70,977 | 233 | 4 | |||||||||||||
| (938,960 | ) | (836,292 | ) | (14 | ) | (48,500 | ) | |||||||||
| 418,509 | 392,294 | 1,186 | (45,993 | ) | ||||||||||||
| 3,053,800 | 2,635,291 | 3,122 | 1,936 | |||||||||||||
Annual Report 221
| Lazard US Sustainable Equity Portfolio | |||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
| Increase (Decrease) in Net Assets | |||||||||||
| Operations | |||||||||||
| Net investment income (loss) | $ | 113,944 | $ | 82,306 | |||||||
| Net realized gain (loss) | 415,321 | 216,045 | |||||||||
| Net change in unrealized appreciation (depreciation) | 1,434,058 | (3,097,384 | ) | ||||||||
| Net increase (decrease) in net assets resulting from operations | 1,963,323 | (2,799,033 | ) | ||||||||
| Distributions to shareholders (Note 2(e)) | |||||||||||
| Net investment income and net realized gains | |||||||||||
| Institutional Shares | (213,930 | ) | (260,667 | ) | |||||||
| Open Shares | (8,229 | ) | (10,089 | ) | |||||||
| R6 Shares | — | — | |||||||||
| Net decrease in net assets resulting from distributions | (222,159 | ) | (270,756 | ) | |||||||
| Capital stock transactions | |||||||||||
| Net proceeds from sales | |||||||||||
| Institutional Shares | 2,849,036 | 224,750 | |||||||||
| Open Shares | 8,325 | 100,309 | |||||||||
| R6 Shares | — | — | |||||||||
| Net proceeds from reinvestment of distributions | |||||||||||
| Institutional Shares | 213,930 | 260,667 | |||||||||
| Open Shares | 8,229 | 10,089 | |||||||||
| R6 Shares | — | — | |||||||||
| Cost of shares redeemed | |||||||||||
| Institutional Shares | (5,713,026 | ) | (9,186 | ) | |||||||
| Open Shares | (36,604 | ) | (100,553 | ) | |||||||
| R6 Shares | — | — | |||||||||
| Net increase (decrease) in net assets from capital stock transactions | (2,670,110 | ) | 486,076 | ||||||||
| Total increase (decrease) in net assets | (928,946 | ) | (2,583,713 | ) | |||||||
| Net assets at beginning of period | 12,758,550 | 15,342,263 | |||||||||
| Net assets at end of period | $ | 11,829,604 | $ | 12,758,550 | |||||||
The accompanying notes are an integral part of these financial statements.
222 Annual Report
| Lazard US Systematic Small Cap Equity Portfolio | ||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||
| $ | 153,826 | $ | 164,934 | |||||
| (1,034,076 | ) | (892,276 | ) | |||||
| 6,868,729 | (320,798 | ) | ||||||
| 5,988,479 | (1,048,140 | ) | ||||||
| (143,061 | ) | (185,529 | ) | |||||
| (161 | ) | (515 | ) | |||||
| (457 | ) | — | ||||||
| (143,679 | ) | (186,044 | ) | |||||
| 10,288,266 | 22,096,992 | |||||||
| 19,058 | 25,500 | |||||||
| 100,000 | — | |||||||
| 143,061 | 185,529 | |||||||
| 161 | 515 | |||||||
| 457 | — | |||||||
| (1,250,487 | ) | (264,652 | ) | |||||
| (3,127 | ) | (24,038 | ) | |||||
| — | — | |||||||
| 9,297,389 | 22,019,846 | |||||||
| 15,142,189 | 20,785,662 | |||||||
| 24,888,023 | 4,102,361 | |||||||
| $ | 40,030,212 | $ | 24,888,023 | |||||
Annual Report 223
| Lazard US Sustainable Equity Portfolio | |||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||
| Shares issued and redeemed | |||||||||||
| Institutional Shares | |||||||||||
| Shares outstanding at beginning of period | 989,077 | 952,893 | |||||||||
| Shares sold | 227,992 | 16,152 | |||||||||
| Shares issued to shareholders from reinvestment of distributions | 15,779 | 20,769 | |||||||||
| Shares redeemed | (434,399 | ) | (737 | ) | |||||||
| Net increase (decrease) | (190,628 | ) | 36,184 | ||||||||
| Shares outstanding at end of period | 798,449 | 989,077 | |||||||||
| Open Shares | |||||||||||
| Shares outstanding at beginning of period | 43,416 | 42,453 | |||||||||
| Shares sold | 638 | 7,636 | |||||||||
| Shares issued to shareholders from reinvestment of distributions | 605 | 801 | |||||||||
| Shares redeemed | (2,768 | ) | (7,474 | ) | |||||||
| Net increase (decrease) | (1,525 | ) | 963 | ||||||||
| Shares outstanding at end of period | 41,891 | 43,416 | |||||||||
| R6 Shares† | |||||||||||
| Shares outstanding at beginning of period | — | — | |||||||||
| Shares sold | — | — | |||||||||
| Shares issued to shareholders from reinvestment of distributions | — | — | |||||||||
| Shares redeemed | — | — | |||||||||
| Net increase (decrease) | — | — | |||||||||
| Shares outstanding at end of period | — | — | |||||||||
| † | The inception date for the Lazard US Systematic Small Cap Equity Portfolio R6 Shares was February 22, 2023 |
The accompanying notes are an integral part of these financial statements.
224 Annual Report
| Lazard US Systematic Small Cap Equity Portfolio | ||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||
| 2,910,165 | 388,111 | |||||||
| 1,120,932 | 2,532,339 | |||||||
| 14,095 | 21,769 | |||||||
| (135,702 | ) | (32,054 | ) | |||||
| 999,325 | 2,522,054 | |||||||
| 3,909,490 | 2,910,165 | |||||||
| 11,923 | 11,650 | |||||||
| 2,102 | 2,915 | |||||||
| 16 | 60 | |||||||
| (328 | ) | (2,702 | ) | |||||
| 1,790 | 273 | |||||||
| 13,713 | 11,923 | |||||||
| — | — | |||||||
| 10,917 | — | |||||||
| 45 | — | |||||||
| — | — | |||||||
| 10,962 | — | |||||||
| 10,962 | — | |||||||
Annual Report 225
The Lazard Funds, Inc. Financial Highlights
LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 11.82 | $ | 15.40 | $ | 17.31 | $ | 14.55 | $ | 11.42 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.27 | 0.13 | 0.05 | 0.04 | 0.08 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.85 | (3.61 | ) | (1.81 | ) | 2.76 | 3.13 | ||||||||||||||
| Total from investment operations | 1.12 | (3.48 | ) | (1.76 | ) | 2.80 | 3.21 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.28 | ) | (0.09 | ) | (0.15 | ) | (0.04 | ) | (0.08 | ) | |||||||||||
| Return of capital | — | (0.01 | ) | — | — | — | |||||||||||||||
| Total distributions | (0.28 | ) | (0.10 | ) | (0.15 | ) | (0.04 | ) | (0.08 | ) | |||||||||||
| Net asset value, end of period | $ | 12.66 | $ | 11.82 | $ | 15.40 | $ | 17.31 | $ | 14.55 | |||||||||||
| Total Return (c) | 9.55 | % | –22.61 | % | –10.14 | % | 19.33 | % | 28.17 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 86,699 | $ | 91,910 | $ | 148,419 | $ | 190,689 | $ | 226,067 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.13 | % | 1.15 | % | 1.15 | % | 1.17 | % | 1.16 | % | |||||||||||
| Gross expenses | 1.24 | % | 1.23 | % | 1.15 | % | 1.21 | % | 1.16 | % | |||||||||||
| Net investment income (loss) | 2.17 | % | 1.02 | % | 0.28 | % | 0.33 | % | 0.63 | % | |||||||||||
| Portfolio turnover rate | 24 | % | 30 | % | 39 | % | 57 | % | 55 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
226 Annual Report
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 11.75 | $ | 15.31 | $ | 17.21 | $ | 14.51 | $ | 11.36 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.23 | 0.10 | — | (b) | 0.01 | 0.05 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.86 | (3.59 | ) | (1.78 | ) | 2.73 | 3.11 | ||||||||||||||
| Total from investment operations | 1.09 | (3.49 | ) | (1.78 | ) | 2.74 | 3.16 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.25 | ) | (0.07 | ) | (0.12 | ) | (0.04 | ) | (0.01 | ) | |||||||||||
| Total distributions | (0.25 | ) | (0.07 | ) | (0.12 | ) | (0.04 | ) | (0.01 | ) | |||||||||||
| Net asset value, end of period | $ | 12.59 | $ | 11.75 | $ | 15.31 | $ | 17.21 | $ | 14.51 | |||||||||||
| Total Return (c) | 9.34 | % | –22.81 | % | –10.37 | % | 18.97 | % | 27.79 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 5,703 | $ | 5,487 | $ | 9,193 | $ | 9,914 | $ | 9,341 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.38 | % | 1.40 | % | 1.40 | % | 1.44 | % | 1.46 | % | |||||||||||
| Gross expenses | 1.59 | % | 1.56 | % | 1.45 | % | 1.53 | % | 1.55 | % | |||||||||||
| Net investment income (loss) | 1.89 | % | 0.76 | % | — | %(d) | 0.04 | % | 0.36 | % | |||||||||||
| Portfolio turnover rate | 24 | % | 30 | % | 39 | % | 57 | % | 55 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Amount is less than $0.01 per share. |
| (c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
| (d) | Amount is less than 0.005% |
The accompanying notes are an integral part of these financial statements.
Annual Report 227
LAZARD EMERGING MARKETS CORE EQUITY PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 8.87 | $ | 11.56 | $ | 13.12 | $ | 11.79 | $ | 9.89 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.17 | 0.17 | 0.08 | 0.08 | 0.20 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.92 | (2.67 | ) | (1.55 | ) | 1.33 | 1.93 | ||||||||||||||
| Total from investment operations | 1.09 | (2.50 | ) | (1.47 | ) | 1.41 | 2.13 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.15 | ) | (0.19 | ) | (0.09 | ) | (0.08 | ) | (0.23 | ) | |||||||||||
| Total distributions | (0.15 | ) | (0.19 | ) | (0.09 | ) | (0.08 | ) | (0.23 | ) | |||||||||||
| Net asset value, end of period | $ | 9.81 | $ | 8.87 | $ | 11.56 | $ | 13.12 | $ | 11.79 | |||||||||||
| Total Return (b) | 12.29 | % | –21.63 | % | –11.21 | % | 11.98 | % | 21.59 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 115,633 | $ | 92,730 | $ | 156,284 | $ | 209,503 | $ | 197,213 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.15 | % | 1.22 | % | 1.16 | % | 1.20 | % | 1.18 | % | |||||||||||
| Gross expenses | 1.27 | % | 1.23 | % | 1.16 | % | 1.20 | % | 1.18 | % | |||||||||||
| Net investment income (loss) | 1.82 | % | 1.75 | % | 0.64 | % | 0.70 | % | 1.83 | % | |||||||||||
| Portfolio turnover rate | 74 | % | 28 | % | 31 | % | 23 | % | 19 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
228 Annual Report
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 8.85 | $ | 11.53 | $ | 13.09 | $ | 11.76 | $ | 9.87 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.15 | 0.14 | 0.04 | 0.04 | 0.16 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.91 | (2.65 | ) | (1.55 | ) | 1.33 | 1.92 | ||||||||||||||
| Total from investment operations | 1.06 | (2.51 | ) | (1.51 | ) | 1.37 | 2.08 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.12 | ) | (0.17 | ) | (0.05 | ) | (0.04 | ) | (0.19 | ) | |||||||||||
| Total distributions | (0.12 | ) | (0.17 | ) | (0.05 | ) | (0.04 | ) | (0.19 | ) | |||||||||||
| Net asset value, end of period | $ | 9.79 | $ | 8.85 | $ | 11.53 | $ | 13.09 | $ | 11.76 | |||||||||||
| Total Return (b) | 12.05 | % | –21.80 | % | –11.53 | % | 11.66 | % | 21.08 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 2,281 | $ | 1,427 | $ | 2,113 | $ | 2,544 | $ | 2,425 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.41 | % | 1.48 | % | 1.50 | % | 1.50 | % | 1.55 | % | |||||||||||
| Gross expenses | 1.76 | % | 1.69 | % | 1.55 | % | 1.62 | % | 1.90 | % | |||||||||||
| Net investment income (loss) | 1.57 | % | 1.46 | % | 0.34 | % | 0.35 | % | 1.48 | % | |||||||||||
| Portfolio turnover rate | 74 | % | 28 | % | 31 | % | 23 | % | 19 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 229
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 8.88 | $ | 11.57 | $ | 13.13 | $ | 11.80 | $ | 9.89 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.19 | 0.18 | 0.09 | 0.07 | 0.20 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.90 | (2.68 | ) | (1.56 | ) | 1.34 | 1.94 | ||||||||||||||
| Total from investment operations | 1.09 | (2.50 | ) | (1.47 | ) | 1.41 | 2.14 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.15 | ) | (0.19 | ) | (0.09 | ) | (0.08 | ) | (0.23 | ) | |||||||||||
| Total distributions | (0.15 | ) | (0.19 | ) | (0.09 | ) | (0.08 | ) | (0.23 | ) | |||||||||||
| Net asset value, end of period | $ | 9.82 | $ | 8.88 | $ | 11.57 | $ | 13.13 | $ | 11.80 | |||||||||||
| Total Return (b) | 12.32 | % | –21.58 | % | –11.19 | % | 11.97 | % | 21.69 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 161 | $ | 347 | $ | 311 | $ | 544 | $ | 597 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.11 | % | 1.18 | % | 1.16 | % | 1.20 | % | 1.18 | % | |||||||||||
| Gross expenses | 3.09 | % | 2.11 | % | 1.91 | % | 1.87 | % | 3.23 | % | |||||||||||
| Net investment income (loss) | 1.94 | % | 1.87 | % | 0.66 | % | 0.63 | % | 1.80 | % | |||||||||||
| Portfolio turnover rate | 74 | % | 28 | % | 31 | % | 23 | % | 19 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
230 Annual Report
LAZARD EMERGING MARKETS EQUITY ADVANTAGE PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.83 | $ | 12.88 | $ | 13.79 | $ | 11.84 | $ | 10.03 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.24 | 0.29 | 0.27 | 0.10 | 0.24 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 1.01 | (3.01 | ) | (0.15 | ) | 1.97 | 1.80 | ||||||||||||||
| Total from investment operations | 1.25 | (2.72 | ) | 0.12 | 2.07 | 2.04 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.21 | ) | (0.29 | ) | (0.22 | ) | (0.10 | ) | (0.23 | ) | |||||||||||
| Net realized gains | — | (0.04 | ) | (0.81 | ) | (0.02 | ) | — | |||||||||||||
| Total distributions | (0.21 | ) | (0.33 | ) | (1.03 | ) | (0.12 | ) | (0.23 | ) | |||||||||||
| Net asset value, end of period | $ | 10.87 | $ | 9.83 | $ | 12.88 | $ | 13.79 | $ | 11.84 | |||||||||||
| Total Return (b) | 12.76 | % | –21.09 | % | 0.96 | % | 17.50 | % | 20.34 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 131,856 | $ | 80,506 | $ | 68,538 | $ | 27,898 | $ | 9,190 | |||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 0.90 | % | 0.91 | % | 0.93 | % | 1.10 | % | 1.10 | % | |||||||||||
| Gross expenses | 0.98 | % | 1.11 | % | 1.21 | % | 1.97 | % | 3.19 | % | |||||||||||
| Net investment income (loss) | 2.33 | % | 2.73 | % | 1.90 | % | 0.87 | % | 2.15 | % | |||||||||||
| Portfolio turnover rate | 61 | % | 122 | % | 88 | % | 91 | % | 59 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 231
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.84 | $ | 12.88 | $ | 13.79 | $ | 11.85 | $ | 10.04 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.26 | 0.25 | 0.12 | 0.09 | 0.21 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.95 | (2.98 | ) | (0.04 | ) | 1.93 | 1.79 | ||||||||||||||
| Total from investment operations | 1.21 | (2.73 | ) | 0.08 | 2.02 | 2.00 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.18 | ) | (0.27 | ) | (0.18 | ) | (0.06 | ) | (0.19 | ) | |||||||||||
| Net realized gains | — | (0.04 | ) | (0.81 | ) | (0.02 | ) | — | |||||||||||||
| Total distributions | (0.18 | ) | (0.31 | ) | (0.99 | ) | (0.08 | ) | (0.19 | ) | |||||||||||
| Net asset value, end of period | $ | 10.87 | $ | 9.84 | $ | 12.88 | $ | 13.79 | $ | 11.85 | |||||||||||
| Total Return (b) | 12.36 | % | –21.21 | % | 0.63 | % | 17.10 | % | 19.97 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 258 | $ | 93 | $ | 979 | $ | 876 | $ | 1,162 | |||||||||||
| Ratios to average net assets (c): | |||||||||||||||||||||
| Net expenses | 1.15 | % | 1.16 | % | 1.25 | % | 1.35 | % | 1.38 | % | |||||||||||
| Gross expenses | 2.93 | % | 3.20 | % | 1.75 | % | 2.68 | % | 4.32 | % | |||||||||||
| Net investment income (loss) | 2.60 | % | 2.11 | % | 0.80 | % | 0.76 | % | 1.87 | % | |||||||||||
| Portfolio turnover rate | 61 | % | 122 | % | 88 | % | 91 | % | 59 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
232 Annual Report
| Selected data for a share | For the Period | ||||
| of capital stock outstanding | 2/22/23* to | ||||
| throughout each period | 12/31/2023 | ||||
| R6 Shares | |||||
| Net asset value, beginning of period | $ | 10.27 | |||
| Income (Loss) from investment operations: | |||||
| Net investment income (loss) (a) | 0.20 | ||||
| Net realized and unrealized gain (loss) | 0.61 | ||||
| Total from investment operations | 0.81 | ||||
| Less distributions from: | |||||
| Net investment income | (0.21 | ) | |||
| Total distributions | (0.21 | ) | |||
| Net asset value, end of period | $ | 10.87 | |||
| Total Return (b) | 7.98 | % | |||
| Ratios and Supplemental Data: | |||||
| Net assets, end of period (in thousands) | $ | 152 | |||
| Ratios to average net assets (c): | |||||
| Net expenses | 0.85 | % | |||
| Gross expenses | 6.22 | % | |||
| Net investment income (loss) | 2.25 | % | |||
| Portfolio turnover rate | 61 | % | |||
| * | The inception date for the R6 Shares was February 22, 2023. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
| (c) | Annualized for periods less than one year. |
The accompanying notes are an integral part of these financial statements.
Annual Report 233
LAZARD EMERGING MARKETS EQUITY PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.57 | $ | 18.12 | $ | 18.03 | $ | 18.48 | $ | 16.06 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.67 | 0.80 | 0.56 | 0.37 | 0.42 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.58 | (3.49 | ) | 0.42 | (0.44 | ) | 2.45 | ||||||||||||||
| Total from investment operations | 3.25 | (2.69 | ) | 0.98 | (0.07 | ) | 2.87 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.65 | ) | (0.86 | ) | (0.89 | ) | (0.38 | ) | (0.45 | ) | |||||||||||
| Total distributions | (0.65 | ) | (0.86 | ) | (0.89 | ) | (0.38 | ) | (0.45 | ) | |||||||||||
| Net asset value, end of period | $ | 17.17 | $ | 14.57 | $ | 18.12 | $ | 18.03 | $ | 18.48 | |||||||||||
| Total Return (b) | 22.39 | % | –14.86 | % | 5.44 | % | –0.10 | % | 18.04 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 2,393,341 | $ | 2,281,187 | $ | 3,271,175 | $ | 3,923,878 | $ | 6,645,429 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.08 | % | 1.06 | % | 1.07 | % | 1.09 | % | 1.08 | % | |||||||||||
| Gross expenses | 1.08 | % | 1.06 | % | 1.07 | % | 1.09 | % | 1.08 | % | |||||||||||
| Net investment income (loss) | 4.12 | % | 4.92 | % | 2.93 | % | 2.36 | % | 2.42 | % | |||||||||||
| Portfolio turnover rate | 26 | % | 23 | % | 34 | % | 39 | % | 20 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
234 Annual Report
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 15.06 | $ | 18.70 | $ | 18.58 | $ | 19.03 | $ | 16.53 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.64 | 0.78 | 0.53 | 0.34 | 0.39 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.66 | (3.60 | ) | 0.43 | (0.45 | ) | 2.52 | ||||||||||||||
| Total from investment operations | 3.30 | (2.82 | ) | 0.96 | (0.11 | ) | 2.91 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.60 | ) | (0.82 | ) | (0.84 | ) | (0.34 | ) | (0.41 | ) | |||||||||||
| Total distributions | (0.60 | ) | (0.82 | ) | (0.84 | ) | (0.34 | ) | (0.41 | ) | |||||||||||
| Net asset value, end of period | $ | 17.76 | $ | 15.06 | $ | 18.70 | $ | 18.58 | $ | 19.03 | |||||||||||
| Total Return (b) | 22.03 | % | –15.09 | % | 5.19 | % | –0.34 | % | 17.73 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 275,834 | $ | 251,237 | $ | 371,863 | $ | 421,990 | $ | 969,347 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.34 | % | 1.32 | % | 1.32 | % | 1.34 | % | 1.34 | % | |||||||||||
| Gross expenses | 1.34 | % | 1.32 | % | 1.32 | % | 1.34 | % | 1.34 | % | |||||||||||
| Net investment income (loss) | 3.86 | % | 4.71 | % | 2.68 | % | 2.08 | % | 2.19 | % | |||||||||||
| Portfolio turnover rate | 26 | % | 23 | % | 34 | % | 39 | % | 20 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 235
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout the period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.58 | $ | 18.13 | $ | 18.04 | $ | 18.47 | $ | 16.06 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.60 | 0.78 | 0.54 | 0.40 | 0.40 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.65 | (3.47 | ) | 0.44 | (0.45 | ) | 2.46 | ||||||||||||||
| Total from investment operations | 3.25 | (2.69 | ) | 0.98 | (0.05 | ) | 2.86 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.65 | ) | (0.86 | ) | (0.89 | ) | (0.38 | ) | (0.45 | ) | |||||||||||
| Total distributions | (0.65 | ) | (0.86 | ) | (0.89 | ) | (0.38 | ) | (0.45 | ) | |||||||||||
| Net asset value, end of period | $ | 17.18 | $ | 14.58 | $ | 18.13 | $ | 18.04 | $ | 18.47 | |||||||||||
| Total Return (b) | 22.37 | % | –14.86 | % | 5.44 | % | 0.01 | % | 17.98 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 27,276 | $ | 8,004 | $ | 9,880 | $ | 23,631 | $ | 184,337 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.08 | % | 1.06 | % | 1.06 | % | 1.08 | % | 1.08 | % | |||||||||||
| Gross expenses | 1.12 | % | 1.10 | % | 1.08 | % | 1.09 | % | 1.08 | % | |||||||||||
| Net investment income (loss) | 3.68 | % | 4.83 | % | 2.83 | % | 2.52 | % | 2.30 | % | |||||||||||
| Portfolio turnover rate | 26 | % | 23 | % | 34 | % | 39 | % | 20 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
236 Annual Report
LAZARD EQUITY FRANCHISE PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.06 | $ | 10.78 | $ | 10.17 | $ | 10.17 | $ | 8.84 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.18 | 0.14 | 0.15 | 0.10 | 0.19 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 1.51 | (0.70 | ) | 2.14 | 0.02 | 1.73 | |||||||||||||||
| Total from investment operations | 1.69 | (0.56 | ) | 2.29 | 0.12 | 1.92 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.24 | ) | (0.10 | ) | (0.15 | ) | (0.07 | ) | (0.15 | ) | |||||||||||
| Net realized gains | (0.62 | ) | (1.06 | ) | (1.53 | ) | (0.05 | ) | (0.44 | ) | |||||||||||
| Total distributions | (0.86 | ) | (1.16 | ) | (1.68 | ) | (0.12 | ) | (0.59 | ) | |||||||||||
| Net asset value, end of period | $ | 9.89 | $ | 9.06 | $ | 10.78 | $ | 10.17 | $ | 10.17 | |||||||||||
| Total Return (b) | 18.70 | % | –5.21 | % | 22.76 | % | 1.15 | % | 21.70 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 118,676 | $ | 159,864 | $ | 105,429 | $ | 91,720 | $ | 39,878 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | |||||||||||
| Gross expenses | 0.96 | % | 0.98 | % | 0.98 | % | 1.11 | % | 1.36 | % | |||||||||||
| Net investment income (loss) | 1.80 | % | 1.35 | % | 1.29 | % | 1.09 | % | 1.95 | % | |||||||||||
| Portfolio turnover rate | 81 | % | 115 | % | 73 | % | 79 | % | 95 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 237
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.05 | $ | 10.77 | $ | 10.17 | $ | 10.17 | $ | 8.84 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.16 | 0.12 | 0.12 | 0.09 | 0.16 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 1.51 | (0.70 | ) | 2.13 | — | (c) | 1.73 | ||||||||||||||
| Total from investment operations | 1.67 | (0.58 | ) | 2.25 | 0.09 | 1.89 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.22 | ) | (0.08 | ) | (0.12 | ) | (0.04 | ) | (0.12 | ) | |||||||||||
| Net realized gains | (0.62 | ) | (1.06 | ) | (1.53 | ) | (0.05 | ) | (0.44 | ) | |||||||||||
| Total distributions | (0.84 | ) | (1.14 | ) | (1.65 | ) | (0.09 | ) | (0.56 | ) | |||||||||||
| Net asset value, end of period | $ | 9.88 | $ | 9.05 | $ | 10.77 | $ | 10.17 | $ | 10.17 | |||||||||||
| Total Return (b) | 18.42 | % | –5.45 | % | 22.36 | % | 0.90 | % | 21.40 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 177 | $ | 190 | $ | 93 | $ | 129 | $ | 312 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.18 | % | |||||||||||
| Gross expenses | 2.72 | % | 4.13 | % | 4.45 | % | 3.64 | % | 5.78 | % | |||||||||||
| Net investment income (loss) | 1.60 | % | 1.17 | % | 1.05 | % | 1.00 | % | 1.64 | % | |||||||||||
| Portfolio turnover rate | 81 | % | 115 | % | 73 | % | 79 | % | 95 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
| (c) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
238 Annual Report
LAZARD GLOBAL EQUITY SELECT PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 15.37 | $ | 18.77 | $ | 16.32 | $ | 14.56 | $ | 11.72 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.13 | * | 0.09 | 0.09 | 0.07 | 0.11 | |||||||||||||||
| Net realized and unrealized gain (loss) | 2.49 | (3.33 | ) | 3.11 | 2.24 | 2.84 | |||||||||||||||
| Total from investment operations | 2.62 | (3.24 | ) | 3.20 | 2.31 | 2.95 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.14 | ) | (0.09 | ) | (0.09 | ) | (0.05 | ) | (0.10 | ) | |||||||||||
| Net realized gains | (0.20 | ) | (0.07 | ) | (0.66 | ) | (0.50 | ) | — | ||||||||||||
| Return of capital | — | — | — | — | (0.01 | ) | |||||||||||||||
| Total distributions | (0.34 | ) | (0.16 | ) | (0.75 | ) | (0.55 | ) | (0.11 | ) | |||||||||||
| Net asset value, end of period | $ | 17.65 | $ | 15.37 | $ | 18.77 | $ | 16.32 | $ | 14.56 | |||||||||||
| Total Return (b) | 17.05 | %* | –17.28 | % | 19.75 | % | 15.97 | % | 25.20 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 96,716 | $ | 91,303 | $ | 109,943 | $ | 92,418 | $ | 82,057 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.88 | % | 0.88 | % | 0.84 | % | 0.90 | % | 1.01 | % | |||||||||||
| Gross expenses | 0.88 | % | 0.88 | % | 0.84 | % | 0.95 | % | 1.08 | % | |||||||||||
| Net investment income (loss) | 0.79 | %* | 0.58 | % | 0.50 | % | 0.46 | % | 0.85 | % | |||||||||||
| Portfolio turnover rate | 5 | % | 19 | % | 22 | % | 90 | % | 25 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 239
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 15.38 | $ | 18.78 | $ | 16.33 | $ | 14.57 | $ | 11.73 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.09 | * | 0.05 | 0.03 | 0.05 | 0.08 | |||||||||||||||
| Net realized and unrealized gain (loss) | 2.48 | (3.33 | ) | 3.11 | 2.22 | 2.83 | |||||||||||||||
| Total from investment operations | 2.57 | (3.28 | ) | 3.14 | 2.27 | 2.91 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.09 | ) | (0.05 | ) | (0.03 | ) | (0.01 | ) | (0.07 | ) | |||||||||||
| Net realized gains | (0.20 | ) | (0.07 | ) | (0.66 | ) | (0.50 | ) | — | ||||||||||||
| Total distributions | (0.29 | ) | (0.12 | ) | (0.69 | ) | (0.51 | ) | (0.07 | ) | |||||||||||
| Net asset value, end of period | $ | 17.66 | $ | 15.38 | $ | 18.78 | $ | 16.33 | $ | 14.57 | |||||||||||
| Total Return (b) | 16.73 | %* | –17.50 | % | 19.37 | % | 15.67 | % | 24.82 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 1,183 | $ | 1,254 | $ | 1,543 | $ | 1,158 | $ | 933 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.30 | % | |||||||||||
| Gross expenses | 1.57 | % | 1.49 | % | 1.40 | % | 1.74 | % | 2.36 | % | |||||||||||
| Net investment income (loss) | 0.52 | %* | 0.30 | % | 0.18 | % | 0.35 | % | 0.56 | % | |||||||||||
| Portfolio turnover rate | 5 | % | 19 | % | 22 | % | 90 | % | 25 | % | |||||||||||
| * | There was less than $0.01 impact on the Net investment income per share and no impact on the total return of the Portfolio as a result of European Union dividend withholding tax reclaims filings for the year ended December 31, 2023. There was a 0.03% impact on the net investment income (loss) ratio of the Portfolio. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
240 Annual Report
LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.20 | $ | 16.50 | $ | 14.65 | $ | 15.78 | $ | 13.51 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.44 | * | 0.41 | * | 0.61 | * | 0.27 | 0.40 | |||||||||||||
| Net realized and unrealized gain (loss) | 1.09 | (0.60 | ) | 2.27 | (1.02 | ) | 2.57 | ||||||||||||||
| Total from investment operations | 1.53 | (0.19 | ) | 2.88 | (0.75 | ) | 2.97 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.45 | ) | (0.84 | ) | (0.72 | ) | (0.04 | ) | (0.70 | ) | |||||||||||
| Net realized gains | — | (1.27 | ) | (0.31 | ) | (0.27 | ) | — | |||||||||||||
| Return of capital | — | — | — | (0.07 | ) | — | |||||||||||||||
| Total distributions | (0.45 | ) | (2.11 | ) | (1.03 | ) | (0.38 | ) | (0.70 | ) | |||||||||||
| Net asset value, end of period | $ | 15.28 | $ | 14.20 | $ | 16.50 | $ | 14.65 | $ | 15.78 | |||||||||||
| Total Return (b) | 10.89 | %* | –1.30 | %* | 19.87 | %* | –4.48 | % | 22.26 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 8,390,489 | $ | 7,789,195 | $ | 7,308,516 | $ | 7,289,680 | $ | 7,277,512 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.96 | % | 0.96 | % | 0.96 | % | 0.96 | % | 0.95 | % | |||||||||||
| Gross expenses | 0.96 | % | 0.96 | % | 0.96 | % | 0.96 | % | 0.95 | % | |||||||||||
| Net investment income (loss) | 2.98 | %* | 2.54 | %* | 3.86 | %* | 1.87 | % | 2.63 | % | |||||||||||
| Portfolio turnover rate | 25 | % | 39 | % | 28 | % | 42 | % | 33 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 241
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.21 | $ | 16.51 | $ | 14.66 | $ | 15.79 | $ | 13.52 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.40 | * | 0.37 | * | 0.55 | * | 0.23 | 0.36 | |||||||||||||
| Net realized and unrealized gain (loss) | 1.09 | (0.61 | ) | 2.29 | (1.01 | ) | 2.57 | ||||||||||||||
| Total from investment operations | 1.49 | (0.24 | ) | 2.84 | (0.78 | ) | 2.93 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.41 | ) | (0.79 | ) | (0.68 | ) | (0.03 | ) | (0.66 | ) | |||||||||||
| Net realized gains | — | (1.27 | ) | (0.31 | ) | (0.25 | ) | — | |||||||||||||
| Return of capital | — | — | — | (0.07 | ) | — | |||||||||||||||
| Total distributions | (0.41 | ) | (2.06 | ) | (0.99 | ) | (0.35 | ) | (0.66 | ) | |||||||||||
| Net asset value, end of period | $ | 15.29 | $ | 14.21 | $ | 16.51 | $ | 14.66 | $ | 15.79 | |||||||||||
| Total Return (b) | 10.60 | %* | –1.55 | %* | 19.56 | %* | –4.68 | % | 21.94 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 284,468 | $ | 336,227 | $ | 300,372 | $ | 307,757 | $ | 448,387 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.22 | % | 1.21 | % | 1.21 | % | 1.21 | % | 1.20 | % | |||||||||||
| Gross expenses | 1.22 | % | 1.21 | % | 1.21 | % | 1.21 | % | 1.20 | % | |||||||||||
| Net investment income (loss) | 2.73 | %* | 2.31 | %* | 3.50 | %* | 1.57 | % | 2.39 | % | |||||||||||
| Portfolio turnover rate | 25 | % | 39 | % | 28 | % | 42 | % | 33 | % | |||||||||||
| * | Includes $0.00, $0.00 and $0.04 of refunds received as a result of European Union dividend withholding tax reclaims filings for the year ended December 31, 2023, December 31, 2022 and December 31, 2021, respectively. There was a 0.00%, 0.00% and 0.29% impact on the total return of the Portfolio for the year ended December 31, 2023, December 31, 2022 and December 31, 2021, respectively. There was a 0.01%, 0.03% and 0.26% impact on the net investment income (loss) ratio of the Portfolio for the year ended December 31, 2023, December 31, 2022 and December 31, 2021, respectively. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. |
The accompanying notes are an integral part of these financial statements.
242 Annual Report
LAZARD GLOBAL STRATEGIC EQUITY PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20# | 12/31/19# | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.88 | $ | 13.49 | $ | 12.12 | $ | 10.30 | $ | 8.20 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.08 | * | 0.04 | 0.26 | 0.02 | 0.10 | |||||||||||||||
| Net realized and unrealized gain (loss) | 1.62 | (2.59 | ) | 1.69 | 2.17 | 2.30 | |||||||||||||||
| Total from investment operations | 1.70 | (2.55 | ) | 1.95 | 2.19 | 2.40 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.05 | ) | (0.04 | ) | (0.22 | ) | (0.01 | ) | (0.10 | ) | |||||||||||
| Net realized gains | — | (0.02 | ) | (0.36 | ) | (0.36 | ) | (0.20 | ) | ||||||||||||
| Total distributions | (0.05 | ) | (0.06 | ) | (0.58 | ) | (0.37 | ) | (0.30 | ) | |||||||||||
| Net asset value, end of period | $ | 12.53 | $ | 10.88 | $ | 13.49 | $ | 12.12 | $ | 10.30 | |||||||||||
| Total Return (b) | 15.65 | %* | –18.93 | % | 16.13 | % | 21.48 | % | 29.19 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 10,859 | $ | 10,442 | $ | 17,502 | $ | 4,076 | $ | 3,185 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.90 | % | 0.93 | % | 0.95 | % | 0.97 | % | 1.00 | % | |||||||||||
| Gross expenses | 2.22 | % | 2.00 | % | 1.88 | % | 5.74 | % | 6.07 | % | |||||||||||
| Net investment income (loss) | 0.74 | %* | 0.36 | % | 1.97 | % | 0.23 | % | 1.01 | % | |||||||||||
| Portfolio turnover rate | 57 | % | 32 | % | 40 | % | 59 | % | 49 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 243
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20# | 12/31/19# | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.78 | $ | 13.38 | $ | 12.02 | $ | 10.25 | $ | 8.15 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.07 | * | 0.01 | 0.19 | — | (c) | 0.05 | ||||||||||||||
| Net realized and unrealized gain (loss) | 1.59 | (2.58 | ) | 1.72 | 2.13 | 2.30 | |||||||||||||||
| Total from investment operations | 1.66 | (2.57 | ) | 1.91 | 2.13 | 2.35 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.02 | ) | (0.01 | ) | (0.19 | ) | — | (c) | (0.05 | ) | |||||||||||
| Net realized gains | — | (0.02 | ) | (0.36 | ) | (0.36 | ) | (0.20 | ) | ||||||||||||
| Total distributions | (0.02 | ) | (0.03 | ) | (0.55 | ) | (0.36 | ) | (0.25 | ) | |||||||||||
| Net asset value, end of period | $ | 12.42 | $ | 10.78 | $ | 13.38 | $ | 12.02 | $ | 10.25 | |||||||||||
| Total Return (b) | 15.42 | %* | –19.22 | % | 15.90 | % | 20.96 | % | 29.01 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 15 | $ | 173 | $ | 210 | $ | 184 | $ | 144 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.15 | % | 1.18 | % | 1.20 | % | 1.22 | % | 1.29 | % | |||||||||||
| Gross expenses | 7.42 | % | 4.79 | % | 4.09 | % | 8.76 | % | 13.26 | % | |||||||||||
| Net investment income (loss) | 0.64 | %* | 0.12 | % | 1.47 | % | –0.01 | % | 0.72 | % | |||||||||||
| Portfolio turnover rate | 57 | % | 32 | % | 40 | % | 59 | % | 49 | % | |||||||||||
| # | On December 17, 2020, the Fund effected a 1:5 reverse share split. All per share data prior to December 17, 2020 has been adjusted to reflect the reverse share split. |
| * | There was less than $0.01 impact on the Net investment income per share and no impact on the total return of the Portfolio as a result of European Union dividend withholding tax reclaims filings for the year ended December 31, 2023. There was a 0.03% impact on the net investment income (loss) ratio of the Portfolio. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
| (c) | Amount is less than $0.01 per share. |
The accompanying notes are an integral part of these financial statements.
244 Annual Report
LAZARD INTERNATIONAL EQUITY ADVANTAGE PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.34 | $ | 11.19 | $ | 10.32 | $ | 9.99 | $ | 8.70 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.26 | 0.29 | 0.29 | 0.20 | 0.22 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 1.59 | (1.79 | ) | 1.15 | 0.33 | 1.29 | |||||||||||||||
| Total from investment operations | 1.85 | (1.50 | ) | 1.44 | 0.53 | 1.51 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.07 | ) | (0.30 | ) | (0.29 | ) | (0.20 | ) | (0.22 | ) | |||||||||||
| Net realized gains | — | (0.05 | ) | (0.28 | ) | — | — | ||||||||||||||
| Total distributions | (0.07 | ) | (0.35 | ) | (0.57 | ) | (0.20 | ) | (0.22 | ) | |||||||||||
| Net asset value, end of period | $ | 11.12 | $ | 9.34 | $ | 11.19 | $ | 10.32 | $ | 9.99 | |||||||||||
| Total Return (b) | 19.82 | % | –13.45 | % | 13.94 | % | 5.41 | % | 17.37 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 3,076 | $ | 2,444 | $ | 2,855 | $ | 2,472 | $ | 2,408 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.80 | % | 0.85 | % | 0.90 | % | 0.90 | % | 0.90 | % | |||||||||||
| Gross expenses | 5.66 | % | 7.06 | % | 5.81 | % | 8.57 | % | 8.40 | % | |||||||||||
| Net investment income (loss) | 2.50 | % | 3.01 | % | 2.54 | % | 2.24 | % | 2.30 | % | |||||||||||
| Portfolio turnover rate | 88 | % | 85 | % | 99 | % | 109 | % | 66 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 245
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.34 | $ | 11.20 | $ | 10.32 | $ | 9.99 | $ | 8.70 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.22 | 0.27 | 0.26 | 0.18 | 0.19 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 1.60 | (1.81 | ) | 1.16 | 0.33 | 1.29 | |||||||||||||||
| Total from investment operations | 1.82 | (1.54 | ) | 1.42 | 0.51 | 1.48 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.04 | ) | (0.27 | ) | (0.26 | ) | (0.18 | ) | (0.19 | ) | |||||||||||
| Net realized gains | — | (0.05 | ) | (0.28 | ) | — | — | ||||||||||||||
| Total distributions | (0.04 | ) | (0.32 | ) | (0.54 | ) | (0.18 | ) | (0.19 | ) | |||||||||||
| Net asset value, end of period | $ | 11.12 | $ | 9.34 | $ | 11.20 | $ | 10.32 | $ | 9.99 | |||||||||||
| Total Return (b) | 19.52 | % | –13.75 | % | 13.75 | % | 5.14 | % | 17.03 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 16,345 | $ | 117 | $ | 135 | $ | 119 | $ | 113 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.05 | % | 1.10 | % | 1.15 | % | 1.15 | % | 1.18 | % | |||||||||||
| Gross expenses | 5.73 | % | 10.77 | % | 9.38 | % | 12.55 | % | 17.72 | % | |||||||||||
| Net investment income (loss) | 2.19 | % | 2.76 | % | 2.29 | % | 1.99 | % | 2.02 | % | |||||||||||
| Portfolio turnover rate | 88 | % | 85 | % | 99 | % | 109 | % | 66 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
246 Annual Report
LAZARD INTERNATIONAL EQUITY PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.41 | $ | 17.98 | $ | 20.02 | $ | 18.61 | $ | 15.68 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.33 | * | 0.29 | * | 0.67 | * | 0.21 | 0.37 | |||||||||||||
| Net realized and unrealized gain (loss) | 2.03 | (2.96 | ) | 0.49 | 1.41 | 2.95 | |||||||||||||||
| Total from investment operations | 2.36 | (2.67 | ) | 1.16 | 1.62 | 3.32 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.44 | ) | (0.26 | ) | (1.07 | ) | (0.21 | ) | (0.39 | ) | |||||||||||
| Net realized gains | (0.17 | ) | (0.64 | ) | (2.13 | ) | — | — | |||||||||||||
| Total distributions | (0.61 | ) | (0.90 | ) | (3.20 | ) | (0.21 | ) | (0.39 | ) | |||||||||||
| Net asset value, end of period | $ | 16.16 | $ | 14.41 | $ | 17.98 | $ | 20.02 | $ | 18.61 | |||||||||||
| Total Return (b) | 16.43 | %* | –14.83 | %* | 6.00 | %* | 8.76 | % | 21.19 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 1,014,462 | $ | 869,014 | $ | 1,567,011 | $ | 2,812,450 | $ | 2,495,021 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.84 | % | 0.83 | % | 0.82 | % | 0.82 | % | 0.82 | % | |||||||||||
| Gross expenses | 0.84 | % | 0.83 | % | 0.82 | % | 0.82 | % | 0.82 | % | |||||||||||
| Net investment income (loss) | 2.08 | %* | 1.89 | %* | 3.21 | %* | 1.21 | % | 2.13 | % | |||||||||||
| Portfolio turnover rate | 48 | % | 31 | % | 34 | % | 38 | % | 37 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 247
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.63 | $ | 18.24 | $ | 20.26 | $ | 18.84 | $ | 15.87 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.29 | * | 0.27 | * | 0.63 | * | 0.17 | 0.33 | |||||||||||||
| Net realized and unrealized gain (loss) | 2.06 | (3.01 | ) | 0.50 | 1.41 | 2.98 | |||||||||||||||
| Total from investment operations | 2.35 | (2.74 | ) | 1.13 | 1.58 | 3.31 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.40 | ) | (0.23 | ) | (1.02 | ) | (0.16 | ) | (0.34 | ) | |||||||||||
| Net realized gains | (0.17 | ) | (0.64 | ) | (2.13 | ) | — | — | |||||||||||||
| Total distributions | (0.57 | ) | (0.87 | ) | (3.15 | ) | (0.16 | ) | (0.34 | ) | |||||||||||
| Net asset value, end of period | $ | 16.41 | $ | 14.63 | $ | 18.24 | $ | 20.26 | $ | 18.84 | |||||||||||
| Total Return (b) | 16.11 | %* | –15.05 | %* | 5.76 | %* | 8.43 | % | 20.89 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 56,809 | $ | 54,781 | $ | 93,296 | $ | 120,781 | $ | 257,308 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.10 | % | 1.09 | % | 1.07 | % | 1.08 | % | 1.07 | % | |||||||||||
| Gross expenses | 1.10 | % | 1.09 | % | 1.07 | % | 1.08 | % | 1.07 | % | |||||||||||
| Net investment income (loss) | 1.80 | %* | 1.70 | %* | 2.98 | %* | 0.97 | % | 1.84 | % | |||||||||||
| Portfolio turnover rate | 48 | % | 31 | % | 34 | % | 38 | % | 37 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
248 Annual Report
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout the period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.38 | $ | 17.95 | $ | 19.99 | $ | 18.58 | $ | 15.66 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.34 | * | 0.31 | * | 0.67 | * | 0.21 | 0.38 | |||||||||||||
| Net realized and unrealized gain (loss) | 2.03 | (2.97 | ) | 0.50 | 1.41 | 2.93 | |||||||||||||||
| Total from investment operations | 2.37 | (2.66 | ) | 1.17 | 1.62 | 3.31 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.45 | ) | (0.27 | ) | (1.08 | ) | (0.21 | ) | (0.39 | ) | |||||||||||
| Net realized gains | (0.17 | ) | (0.64 | ) | (2.13 | ) | — | — | |||||||||||||
| Total distributions | (0.62 | ) | (0.91 | ) | (3.21 | ) | (0.21 | ) | (0.39 | ) | |||||||||||
| Net asset value, end of period | $ | 16.13 | $ | 14.38 | $ | 17.95 | $ | 19.99 | $ | 18.58 | |||||||||||
| Total Return (b) | 16.50 | %* | –14.82 | %* | 6.03 | %* | 8.79 | % | 21.17 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 73,535 | $ | 63,434 | $ | 116,187 | $ | 129,419 | $ | 107,574 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.81 | % | 0.80 | % | 0.80 | % | 0.81 | % | 0.80 | % | |||||||||||
| Gross expenses | 0.85 | % | 0.83 | % | 0.82 | % | 0.83 | % | 0.82 | % | |||||||||||
| Net investment income (loss) | 2.15 | %* | 2.02 | %* | 3.20 | %* | 1.21 | % | 2.19 | % | |||||||||||
| Portfolio turnover rate | 48 | % | 31 | % | 34 | % | 38 | % | 37 | % | |||||||||||
| * | Includes $0.02, $0.02 and $0.07 of refunds received as a result of European Union dividend withholding tax reclaims filings for the year ended December 31, 2023, December 31, 2022 and December 31, 2021, respectively. There was a 0.14%, 0.12% and 0.42% impact to the Institutional and R6 Share Class and a 0.15%, 0.12% and 0.40% impact to the Open Class on the total return of the Portfolio for the year ended December 31, 2023, December 31, 2022 and December 31, 2021, respectively. There was a 0.12%, 0.15% and 0.31% impact on the net investment income (loss) ratio of the Portfolio for the year ended December 31, 2023, December 31, 2022 and December 31, 2021, respectively. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 249
LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.52 | $ | 11.51 | $ | 11.53 | $ | 10.75 | $ | 9.13 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.17 | * | 0.16 | * | 0.31 | 0.11 | 0.23 | ||||||||||||||
| Net realized and unrealized gain (loss) | 0.97 | (1.94 | ) | 0.06 | 0.78 | 1.62 | |||||||||||||||
| Total from investment operations | 1.14 | (1.78 | ) | 0.37 | 0.89 | 1.85 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.16 | ) | (0.17 | ) | (0.32 | ) | (0.11 | ) | (0.23 | ) | |||||||||||
| Net realized gains | — | (0.04 | ) | (0.07 | ) | — | — | ||||||||||||||
| Total distributions | (0.16 | ) | (0.21 | ) | (0.39 | ) | (0.11 | ) | (0.23 | ) | |||||||||||
| Net asset value, end of period | $ | 10.50 | $ | 9.52 | $ | 11.51 | $ | 11.53 | $ | 10.75 | |||||||||||
| Total Return (b) | 11.94 | %* | –15.46 | %* | 3.24 | % | 8.33 | % | 20.32 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 50,570 | $ | 51,643 | $ | 78,782 | $ | 92,121 | $ | 93,586 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.90 | % | 0.90 | % | 0.87 | % | 0.90 | % | 0.97 | % | |||||||||||
| Gross expenses | 1.01 | % | 0.96 | % | 0.87 | % | 0.95 | % | 0.99 | % | |||||||||||
| Net investment income (loss) | 1.64 | %* | 1.56 | %* | 2.60 | % | 1.10 | % | 2.29 | % | |||||||||||
| Portfolio turnover rate | 32 | % | 41 | % | 35 | % | 34 | % | 42 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
250 Annual Report
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.57 | $ | 11.57 | $ | 11.58 | $ | 10.80 | $ | 9.17 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.14 | * | 0.13 | * | 0.24 | 0.08 | 0.19 | ||||||||||||||
| Net realized and unrealized gain (loss) | 0.98 | (1.94 | ) | 0.11 | 0.78 | 1.64 | |||||||||||||||
| Total from investment operations | 1.12 | (1.81 | ) | 0.35 | 0.86 | 1.83 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.13 | ) | (0.15 | ) | (0.29 | ) | (0.08 | ) | (0.20 | ) | |||||||||||
| Net realized gains | — | (0.04 | ) | (0.07 | ) | — | — | ||||||||||||||
| Total distributions | (0.13 | ) | (0.19 | ) | (0.36 | ) | (0.08 | ) | (0.20 | ) | |||||||||||
| Net asset value, end of period | $ | 10.56 | $ | 9.57 | $ | 11.57 | $ | 11.58 | $ | 10.80 | |||||||||||
| Total Return (b) | 11.71 | %* | –15.68 | %* | 3.03 | % | 8.02 | % | 19.97 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 2,874 | $ | 2,910 | $ | 4,166 | $ | 2,868 | $ | 2,502 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.28 | % | |||||||||||
| Gross expenses | 1.44 | % | 1.35 | % | 1.26 | % | 1.38 | % | 1.74 | % | |||||||||||
| Net investment income (loss) | 1.39 | %* | 1.30 | %* | 2.03 | % | 0.80 | % | 1.87 | % | |||||||||||
| Portfolio turnover rate | 32 | % | 41 | % | 35 | % | 34 | % | 42 | % | |||||||||||
| * | There was less than $0.01 impact on the Net investment income per share and no impact on the total return of the Portfolio as a result of European Union dividend withholding tax reclaims filings for the year ended December 31, 2023 and December 31, 2022, respectively. There was a 0.04% and 0.02% impact on the net investment income (loss) ratio of the Portfolio for the year ended December 31, 2023 and December 31, 2022, respectively. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 251
LAZARD INTERNATIONAL QUALITY GROWTH PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.28 | $ | 16.80 | $ | 15.59 | $ | 12.69 | $ | 9.98 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.13 | * | 0.10 | 0.07 | 0.03 | 0.08 | |||||||||||||||
| Net realized and unrealized gain (loss) | 2.24 | (3.47 | ) | 1.48 | 3.01 | 2.95 | |||||||||||||||
| Total from investment operations | 2.37 | (3.37 | ) | 1.55 | 3.04 | 3.03 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.10 | ) | (0.09 | ) | (0.03 | ) | (0.01 | ) | (0.27 | ) | |||||||||||
| Net realized gains | — | (0.06 | ) | (0.31 | ) | (0.13 | ) | (0.05 | ) | ||||||||||||
| Total distributions | (0.10 | ) | (0.15 | ) | (0.34 | ) | (0.14 | ) | (0.32 | ) | |||||||||||
| Net asset value, end of period | $ | 15.55 | $ | 13.28 | $ | 16.80 | $ | 15.59 | $ | 12.69 | |||||||||||
| Total Return (b) | 17.83 | %* | –20.10 | % | 9.99 | % | 23.95 | % | 30.32 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 255,657 | $ | 110,723 | $ | 62,468 | $ | 10,473 | $ | 3,958 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.86 | % | 0.85 | % | 0.85 | % | 0.85 | % | 0.85 | % | |||||||||||
| Gross expenses | 0.90 | % | 1.05 | % | 1.24 | % | 3.58 | % | 8.16 | % | |||||||||||
| Net investment income (loss) | 0.87 | %* | 0.70 | % | 0.44 | % | 0.24 | % | 0.65 | % | |||||||||||
| Portfolio turnover rate | 10 | % | 43 | % | 7 | % | 12 | % | 20 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
252 Annual Report
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.20 | $ | 16.70 | $ | 15.51 | $ | 12.65 | $ | 10.00 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.10 | * | 0.06 | 0.03 | (0.02 | ) | 0.07 | ||||||||||||||
| Net realized and unrealized gain (loss) | 2.22 | (3.45 | ) | 1.47 | 3.01 | 2.90 | |||||||||||||||
| Total from investment operations | 2.32 | (3.39 | ) | 1.50 | 2.99 | 2.97 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.06 | ) | (0.05 | ) | — | — | (0.27 | ) | |||||||||||||
| Net realized gains | — | (0.06 | ) | (0.31 | ) | (0.13 | ) | (0.05 | ) | ||||||||||||
| Total distributions | (0.06 | ) | (0.11 | ) | (0.31 | ) | (0.13 | ) | (0.32 | ) | |||||||||||
| Net asset value, end of period | $ | 15.46 | $ | 13.20 | $ | 16.70 | $ | 15.51 | $ | 12.65 | |||||||||||
| Total Return (b) | 17.57 | %* | –20.31 | % | 9.69 | % | 23.63 | % | 29.66 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 1,754 | $ | 372 | $ | 333 | $ | 291 | $ | 10 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.11 | % | 1.10 | % | 1.10 | % | 1.10 | % | 1.10 | % | |||||||||||
| Gross expenses | 1.43 | % | 2.81 | % | 2.76 | % | 9.57 | % | 142.50 | % | |||||||||||
| Net investment income (loss) | 0.70 | %* | 0.42 | % | 0.18 | % | –0.15 | % | 0.60 | % | |||||||||||
| Portfolio turnover rate | 10 | % | 43 | % | 7 | % | 12 | % | 20 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 253
| Selected data for a share | For the Period | ||||
| of capital stock outstanding | 2/22/23# to | ||||
| throughout each period | 12/31/23 | ||||
| R6 Shares | |||||
| Net asset value, beginning of period | $ | 13.99 | |||
| Income (Loss) from investment operations: | |||||
| Net investment income (loss) (a) | 0.07 | * | |||
| Net realized and unrealized gain (loss) | 1.59 | ||||
| Total from investment operations | 1.66 | ||||
| Less distributions from: | |||||
| Net investment income | (0.10 | ) | |||
| Total distributions | (0.10 | ) | |||
| Net asset value, end of period | $ | 15.55 | |||
| Total Return | 11.90 | %* | |||
| Ratios and Supplemental Data: | |||||
| Net assets, end of period (in thousands) | $ | 517 | |||
| Ratios to average net assets (c): | |||||
| Net expenses | 0.81 | % | |||
| Gross expenses | 16.17 | % | |||
| Net investment income (loss) | 0.54 | %* | |||
| Portfolio turnover rate | 10 | % | |||
| * | There was less than $0.01 impact on the Net investment income per share and no impact on the total return of the Portfolio as a result of European Union dividend withholding tax reclaims filings for the year ended December 31, 2023. There was less than 0.005% impact on the net investment income (loss) ratio of the Portfolio. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| # | The inception date for the R6 Shares was February 22, 2023. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (c) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
254 Annual Report
LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 7.69 | $ | 10.99 | $ | 13.50 | $ | 12.19 | $ | 9.95 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.16 | * | 0.14 | 0.20 | * | 0.06 | 0.13 | ||||||||||||||
| Net realized and unrealized gain (loss) | 0.72 | (3.02 | ) | 1.33 | 1.53 | 2.42 | |||||||||||||||
| Total from investment operations | 0.88 | (2.88 | ) | 1.53 | 1.59 | 2.55 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.17 | ) | (0.05 | ) | (0.56 | ) | (0.28 | ) | (0.05 | ) | |||||||||||
| Net realized gains | — | (0.37 | ) | (3.48 | ) | — | (0.26 | ) | |||||||||||||
| Total distributions | (0.17 | ) | (0.42 | ) | (4.04 | ) | (0.28 | ) | (0.31 | ) | |||||||||||
| Net asset value, end of period | $ | 8.40 | $ | 7.69 | $ | 10.99 | $ | 13.50 | $ | 12.19 | |||||||||||
| Total Return (b) | 11.55 | %* | –26.32 | % | 11.83 | %* | 13.44 | % | 26.01 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 4,811 | $ | 6,940 | $ | 14,542 | $ | 29,374 | $ | 37,677 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.09 | % | 1.14 | % | 1.12 | % | 1.15 | % | 1.14 | % | |||||||||||
| Gross expenses | 2.14 | % | 1.72 | % | 1.24 | % | 1.29 | % | 1.15 | % | |||||||||||
| Net investment income (loss) | 1.96 | %* | 1.65 | % | 1.34 | %* | 0.57 | % | 1.14 | % | |||||||||||
| Portfolio turnover rate | 45 | % | 44 | % | 47 | % | 50 | % | 37 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 255
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 7.72 | $ | 11.03 | $ | 13.50 | $ | 12.19 | $ | 9.97 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.14 | * | 0.14 | 0.15 | * | 0.04 | 0.10 | ||||||||||||||
| Net realized and unrealized gain (loss) | 0.72 | (3.05 | ) | 1.35 | 1.52 | 2.43 | |||||||||||||||
| Total from investment operations | 0.86 | (2.91 | ) | 1.50 | 1.56 | 2.53 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.15 | ) | (0.03 | ) | (0.49 | ) | (0.25 | ) | (0.05 | ) | |||||||||||
| Net realized gains | — | (0.37 | ) | (3.48 | ) | — | (0.26 | ) | |||||||||||||
| Total distributions | (0.15 | ) | (0.40 | ) | (3.97 | ) | (0.25 | ) | (0.31 | ) | |||||||||||
| Net asset value, end of period | $ | 8.43 | $ | 7.72 | $ | 11.03 | $ | 13.50 | $ | 12.19 | |||||||||||
| Total Return (b) | 11.24 | %* | –26.49 | % | 11.61 | %* | 13.15 | % | 25.76 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 7,241 | $ | 7,692 | $ | 11,969 | $ | 12,581 | $ | 19,780 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.33 | % | 1.39 | % | 1.37 | % | 1.40 | % | 1.39 | % | |||||||||||
| Gross expenses | 2.35 | % | 1.97 | % | 1.51 | % | 1.56 | % | 1.43 | % | |||||||||||
| Net investment income (loss) | 1.78 | %* | 1.58 | % | 1.05 | %* | 0.33 | % | 0.86 | % | |||||||||||
| Portfolio turnover rate | 45 | % | 44 | % | 47 | % | 50 | % | 37 | % | |||||||||||
| * | Includes $0.03 of refunds received as a result of European Union dividend withholding tax reclaims filings for the year ended December 31, 2023 and December 31, 2021, respectively. There was a 0.39% impact to the Institutional and 0.40% impact to the Open class and 0.31% impact to both the Institutional and Open class on the total return of the Portfolio for the year ended December 31, 2023 and December 31, 2021, respectively. There was a 0.34% and 0.17% impact on the net investment income (loss) ratio of the Portfolio for the year ended December 31, 2023 and December 31, 2021, respectively. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
256 Annual Report
LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.42 | $ | 16.37 | $ | 16.83 | $ | 15.38 | $ | 12.89 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.21 | * | 0.22 | * | 0.56 | * | 0.17 | 0.24 | |||||||||||||
| Net realized and unrealized gain (loss) | 2.08 | (2.98 | ) | 0.42 | 1.45 | 2.53 | |||||||||||||||
| Total from investment operations | 2.29 | (2.76 | ) | 0.98 | 1.62 | 2.77 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.23 | ) | (0.19 | ) | (0.62 | ) | (0.17 | ) | (0.28 | ) | |||||||||||
| Net realized gains | — | — | (0.51 | ) | — | — | |||||||||||||||
| Return of capital | — | — | (0.31 | ) | — | — | |||||||||||||||
| Total distributions | (0.23 | ) | (0.19 | ) | (1.44 | ) | (0.17 | ) | (0.28 | ) | |||||||||||
| Net asset value, end of period | $ | 15.48 | $ | 13.42 | $ | 16.37 | $ | 16.83 | $ | 15.38 | |||||||||||
| Total Return (b) | 17.06 | %* | –16.88 | %* | 5.99 | %* | 10.58 | % | 21.55 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 3,950,193 | $ | 4,180,622 | $ | 5,713,405 | $ | 5,270,611 | $ | 5,505,271 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.82 | % | 0.81 | % | 0.80 | % | 0.81 | % | 0.80 | % | |||||||||||
| Gross expenses | 0.82 | % | 0.81 | % | 0.80 | % | 0.81 | % | 0.80 | % | |||||||||||
| Net investment income (loss) | 1.45 | %* | 1.56 | %* | 3.15 | % | 1.18 | % | 1.66 | % | |||||||||||
| Portfolio turnover rate | 43 | % | 33 | % | 31 | % | 37 | % | 36 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 257
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.56 | $ | 16.53 | $ | 16.99 | $ | 15.52 | $ | 13.01 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.17 | * | 0.18 | * | 0.52 | * | 0.14 | 0.21 | |||||||||||||
| Net realized and unrealized gain (loss) | 2.09 | (3.00 | ) | 0.42 | 1.46 | 2.55 | |||||||||||||||
| Total from investment operations | 2.26 | (2.82 | ) | 0.94 | 1.60 | 2.76 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.19 | ) | (0.15 | ) | (0.60 | ) | (0.13 | ) | (0.25 | ) | |||||||||||
| Net realized gains | — | — | (0.51 | ) | — | — | |||||||||||||||
| Return of capital | — | — | (0.29 | ) | — | — | |||||||||||||||
| Total distributions | (0.19 | ) | (0.15 | ) | (1.40 | ) | (0.13 | ) | (0.25 | ) | |||||||||||
| Net asset value, end of period | $ | 15.63 | $ | 13.56 | $ | 16.53 | $ | 16.99 | $ | 15.52 | |||||||||||
| Total Return (b) | 16.66 | %* | –17.04 | %* | 5.67 | %* | 10.34 | % | 21.21 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 310,809 | $ | 308,243 | $ | 460,862 | $ | 535,285 | $ | 682,035 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.08 | % | 1.07 | % | 1.06 | % | 1.06 | % | 1.06 | % | |||||||||||
| Gross expenses | 1.08 | % | 1.07 | % | 1.06 | % | 1.06 | % | 1.06 | % | |||||||||||
| Net investment income (loss) | 1.19 | %* | 1.27 | %* | 2.88 | %* | 0.94 | % | 1.47 | % | |||||||||||
| Portfolio turnover rate | 43 | % | 33 | % | 31 | % | 37 | % | 36 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
258 Annual Report
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout the period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.43 | $ | 16.38 | $ | 16.85 | $ | 15.39 | $ | 12.90 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.21 | * | 0.22 | * | 0.56 | * | 0.17 | 0.23 | |||||||||||||
| Net realized and unrealized gain (loss) | 2.08 | (2.98 | ) | 0.41 | 1.46 | 2.54 | |||||||||||||||
| Total from investment operations | 2.29 | (2.76 | ) | 0.97 | 1.63 | 2.77 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.23 | ) | (0.19 | ) | (0.62 | ) | (0.17 | ) | (0.28 | ) | |||||||||||
| Net realized gains | — | — | (0.51 | ) | — | — | |||||||||||||||
| Return of capital | — | — | (0.31 | ) | — | — | |||||||||||||||
| Total distributions | (0.23 | ) | (0.19 | ) | (1.44 | ) | (0.17 | ) | (0.28 | ) | |||||||||||
| Net asset value, end of period | $ | 15.49 | $ | 13.43 | $ | 16.38 | $ | 16.85 | $ | 15.39 | |||||||||||
| Total Return (b) | 17.04 | %* | –16.87 | %* | 5.93 | %* | 10.64 | % | 21.54 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 76,966 | $ | 96,524 | $ | 124,625 | $ | 118,678 | $ | 120,118 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.82 | % | 0.81 | % | 0.80 | % | 0.81 | % | 0.80 | % | |||||||||||
| Gross expenses | 0.83 | % | 0.82 | % | 0.81 | % | 0.82 | % | 0.81 | % | |||||||||||
| Net investment income (loss) | 1.47 | %* | 1.54 | %* | 3.16 | %* | 1.16 | % | 1.61 | % | |||||||||||
| Portfolio turnover rate | 43 | % | 33 | % | 31 | % | 37 | % | 36 | % | |||||||||||
| * | Includes $0.01, $0.01 and $0.06 of refunds received as a result of European Union dividend withholding tax reclaims filings for the year ended December 31, 2023, December 31, 2022 and December 31, 2021, respectively. There was a 0.08%, 0.06% and 0.39% impact to the Institutional and R6 Share Class and a 0.08%, 0.06% and 0.38% impact to the Open Class on the total return of the Portfolio for the year ended December 31, 2023, December 31, 2022 and December 31, 2021, respectively. There was a 0.06%, 0.10% and 0.33% impact on the net investment income (loss) ratio of the Portfolio for the year ended December 31, 2023, December 31, 2022 and December 31, 2021, respectively. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 259
LAZARD MANAGED EQUITY VOLATILITY PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 11.93 | $ | 13.17 | $ | 11.78 | $ | 12.66 | $ | 10.55 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.24 | * | 0.22 | 0.21 | 0.21 | 0.21 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.66 | (1.10 | ) | 2.01 | (0.87 | ) | 2.08 | ||||||||||||||
| Total from investment operations | 0.90 | (0.88 | ) | 2.22 | (0.66 | ) | 2.29 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.35 | ) | (0.21 | ) | (0.39 | ) | (0.09 | ) | (0.18 | ) | |||||||||||
| Net realized gains | (0.14 | ) | (0.15 | ) | (0.44 | ) | (0.13 | ) | — | (b) | |||||||||||
| Total distributions | (0.49 | ) | (0.36 | ) | (0.83 | ) | (0.22 | ) | (0.18 | ) | |||||||||||
| Net asset value, end of period | $ | 12.34 | $ | 11.93 | $ | 13.17 | $ | 11.78 | $ | 12.66 | |||||||||||
| Total Return (c) | 7.65 | %* | –6.72 | % | 19.00 | % | –5.18 | % | 21.69 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 17,894 | $ | 28,712 | $ | 31,040 | $ | 25,737 | $ | 34,354 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.76 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | |||||||||||
| Gross expenses | 1.37 | % | 1.25 | % | 1.20 | % | 1.23 | % | 1.36 | % | |||||||||||
| Net investment income (loss) | 1.96 | %* | 1.79 | % | 1.62 | % | 1.83 | % | 1.72 | % | |||||||||||
| Portfolio turnover rate | 83 | % | 97 | % | 110 | % | 138 | % | 103 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
260 Annual Report
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 11.92 | $ | 13.16 | $ | 11.78 | $ | 12.65 | $ | 10.54 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.20 | * | 0.19 | 0.18 | 0.19 | 0.17 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.67 | (1.10 | ) | 2.00 | (0.87 | ) | 2.08 | ||||||||||||||
| Total from investment operations | 0.87 | (0.91 | ) | 2.18 | (0.68 | ) | 2.25 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.32 | ) | (0.18 | ) | (0.36 | ) | (0.06 | ) | (0.14 | ) | |||||||||||
| Net realized gains | (0.14 | ) | (0.15 | ) | (0.44 | ) | (0.13 | ) | — | (b) | |||||||||||
| Total distributions | (0.46 | ) | (0.33 | ) | (0.80 | ) | (0.19 | ) | (0.14 | ) | |||||||||||
| Net asset value, end of period | $ | 12.33 | $ | 11.92 | $ | 13.16 | $ | 11.78 | $ | 12.65 | |||||||||||
| Total Return (c) | 7.39 | %* | –6.96 | % | 18.62 | % | –5.34 | % | 21.36 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 87 | $ | 81 | $ | 87 | $ | 76 | $ | 231 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.01 | % | 1.00 | % | 1.00 | % | 1.00 | % | 1.03 | % | |||||||||||
| Gross expenses | 7.84 | % | 6.80 | % | 6.85 | % | 4.39 | % | 5.81 | % | |||||||||||
| Net investment income (loss) | 1.67 | %* | 1.55 | % | 1.39 | % | 1.63 | % | 1.46 | % | |||||||||||
| Portfolio turnover rate | 83 | % | 97 | % | 110 | % | 138 | % | 103 | % | |||||||||||
| * | There was less than $0.01 impact on the Net investment income per share, net investment income (loss) ratio & no impact on the total return of the Portfolio as a result of European Union dividend withholding tax reclaims filings for the year ended December 31, 2023. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Amount is less than $0.01 per share. |
| (c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 261
LAZARD US EQUITY CONCENTRATED PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.88 | $ | 19.70 | $ | 18.05 | $ | 16.84 | $ | 12.89 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.09 | 0.10 | 0.08 | 0.12 | 0.13 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.16 | (3.98 | ) | 4.55 | 1.39 | 3.96 | |||||||||||||||
| Total from investment operations | 2.25 | (3.88 | ) | 4.63 | 1.51 | 4.09 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.19 | ) | (0.10 | ) | (0.08 | ) | (0.11 | ) | (0.14 | ) | |||||||||||
| Net realized gains | (8.40 | ) | (0.84 | ) | (2.90 | ) | (0.19 | ) | — | ||||||||||||
| Total distributions | (8.59 | ) | (0.94 | ) | (2.98 | ) | (0.30 | ) | (0.14 | ) | |||||||||||
| Net asset value, end of period | $ | 8.54 | $ | 14.88 | $ | 19.70 | $ | 18.05 | $ | 16.84 | |||||||||||
| Total Return (b) | 16.30 | % | –19.89 | % | 26.02 | % | 8.98 | % | 31.72 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 181,667 | $ | 1,193,492 | $ | 1,943,232 | $ | 1,936,367 | $ | 1,271,509 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.81 | % | 0.78 | % | 0.76 | % | 0.76 | % | 0.76 | % | |||||||||||
| Gross expenses | 0.81 | % | 0.78 | % | 0.76 | % | 0.76 | % | 0.76 | % | |||||||||||
| Net investment income (loss) | 0.55 | % | 0.58 | % | 0.38 | % | 0.72 | % | 0.85 | % | |||||||||||
| Portfolio turnover rate | 81 | % | 69 | % | 32 | % | 43 | % | 33 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
262 Annual Report
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 15.03 | $ | 19.88 | $ | 18.19 | $ | 16.98 | $ | 12.99 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.08 | 0.05 | 0.03 | 0.08 | 0.09 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.14 | (4.01 | ) | 4.58 | 1.38 | 3.99 | |||||||||||||||
| Total from investment operations | 2.22 | (3.96 | ) | 4.61 | 1.46 | 4.08 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.14 | ) | (0.05 | ) | (0.02 | ) | (0.06 | ) | (0.09 | ) | |||||||||||
| Net realized gains | (8.40 | ) | (0.84 | ) | (2.90 | ) | (0.19 | ) | — | ||||||||||||
| Total distributions | (8.54 | ) | (0.89 | ) | (2.92 | ) | (0.25 | ) | (0.09 | ) | |||||||||||
| Net asset value, end of period | $ | 8.71 | $ | 15.03 | $ | 19.88 | $ | 18.19 | $ | 16.98 | |||||||||||
| Total Return (b) | 16.02 | % | –20.07 | % | 25.72 | % | 8.63 | % | 31.42 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 21,231 | $ | 24,268 | $ | 35,649 | $ | 34,358 | $ | 46,840 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.08 | % | 1.04 | % | 1.02 | % | 1.02 | % | 1.04 | % | |||||||||||
| Gross expenses | 1.08 | % | 1.04 | % | 1.02 | % | 1.02 | % | 1.04 | % | |||||||||||
| Net investment income (loss) | 0.51 | % | 0.31 | % | 0.13 | % | 0.47 | % | 0.55 | % | |||||||||||
| Portfolio turnover rate | 81 | % | 69 | % | 32 | % | 43 | % | 33 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 263
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 14.93 | $ | 19.76 | $ | 18.09 | $ | 16.89 | $ | 12.92 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.04 | 0.10 | 0.08 | 0.12 | 0.13 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.27 | (3.99 | ) | 4.56 | 1.38 | 3.98 | |||||||||||||||
| Total from investment operations | 2.31 | (3.89 | ) | 4.64 | 1.50 | 4.11 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.19 | ) | (0.10 | ) | (0.07 | ) | (0.11 | ) | (0.14 | ) | |||||||||||
| Net realized gains | (8.40 | ) | (0.84 | ) | (2.90 | ) | (0.19 | ) | — | ||||||||||||
| Total distributions | (8.59 | ) | (0.94 | ) | (2.97 | ) | (0.30 | ) | (0.14 | ) | |||||||||||
| Net asset value, end of period | $ | 8.65 | $ | 14.93 | $ | 19.76 | $ | 18.09 | $ | 16.89 | |||||||||||
| Total Return (b) | 16.73 | % | –19.89 | % | 26.06 | % | 8.90 | % | 31.79 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 24 | $ | 2,186 | $ | 2,720 | $ | 2,177 | $ | 2,091 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.79 | % | 0.78 | % | 0.76 | % | 0.76 | % | 0.76 | % | |||||||||||
| Gross expenses | 1.02 | % | 0.94 | % | 0.87 | % | 0.92 | % | 1.20 | % | |||||||||||
| Net investment income (loss) | 0.25 | % | 0.59 | % | 0.40 | % | 0.73 | % | 0.83 | % | |||||||||||
| Portfolio turnover rate | 81 | % | 69 | % | 32 | % | 43 | % | 33 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
264 Annual Report
LAZARD US EQUITY FOCUS PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 12.99 | $ | 16.07 | $ | 13.37 | $ | 12.03 | $ | 10.23 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.13 | 0.10 | 0.08 | 0.11 | 0.13 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.43 | (2.82 | ) | 3.54 | 1.94 | 3.11 | |||||||||||||||
| Total from investment operations | 2.56 | (2.72 | ) | 3.62 | 2.05 | 3.24 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.13 | ) | (0.10 | ) | (0.05 | ) | (0.10 | ) | (0.23 | ) | |||||||||||
| Net realized gains | (0.03 | ) | (0.26 | ) | (0.87 | ) | (0.61 | ) | (1.21 | ) | |||||||||||
| Total distributions | (0.16 | ) | (0.36 | ) | (0.92 | ) | (0.71 | ) | (1.44 | ) | |||||||||||
| Net asset value, end of period | $ | 15.39 | $ | 12.99 | $ | 16.07 | $ | 13.37 | $ | 12.03 | |||||||||||
| Total Return (b) | 19.77 | % | –16.94 | % | 27.36 | % | 17.29 | % | 31.67 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 43,673 | $ | 38,037 | $ | 42,755 | $ | 31,075 | $ | 32,661 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.75 | % | |||||||||||
| Gross expenses | 0.80 | % | 0.81 | % | 0.76 | % | 1.26 | % | 0.92 | % | |||||||||||
| Net investment income (loss) | 0.93 | % | 0.72 | % | 0.54 | % | 0.91 | % | 1.07 | % | |||||||||||
| Portfolio turnover rate | 38 | % | 29 | % | 27 | % | 54 | % | 45 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 265
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 13.06 | $ | 16.16 | $ | 13.45 | $ | 12.09 | $ | 10.28 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.10 | 0.07 | 0.04 | 0.08 | 0.10 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.44 | (2.84 | ) | 3.55 | 1.96 | 3.11 | |||||||||||||||
| Total from investment operations | 2.54 | (2.77 | ) | 3.59 | 2.04 | 3.21 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.09 | ) | (0.07 | ) | (0.01 | ) | (0.07 | ) | (0.19 | ) | |||||||||||
| Net realized gains | (0.03 | ) | (0.26 | ) | (0.87 | ) | (0.61 | ) | (1.21 | ) | |||||||||||
| Total distributions | (0.12 | ) | (0.33 | ) | (0.88 | ) | (0.68 | ) | (1.40 | ) | |||||||||||
| Net asset value, end of period | $ | 15.48 | $ | 13.06 | $ | 16.16 | $ | 13.45 | $ | 12.09 | |||||||||||
| Total Return (b) | 19.53 | % | –17.18 | % | 26.96 | % | 17.08 | % | 31.25 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 1,170 | $ | 1,160 | $ | 1,569 | $ | 1,285 | $ | 1,117 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.95 | % | 0.95 | % | 0.95 | % | 0.95 | % | 1.03 | % | |||||||||||
| Gross expenses | 1.38 | % | 1.31 | % | 1.22 | % | 1.79 | % | 2.14 | % | |||||||||||
| Net investment income (loss) | 0.68 | % | 0.46 | % | 0.29 | % | 0.67 | % | 0.79 | % | |||||||||||
| Portfolio turnover rate | 38 | % | 29 | % | 27 | % | 54 | % | 45 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
266 Annual Report
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 12.99 | $ | 16.08 | $ | 13.38 | $ | 12.04 | $ | 10.23 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.13 | 0.10 | 0.08 | 0.11 | 0.13 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 2.43 | (2.83 | ) | 3.54 | 1.94 | 3.12 | |||||||||||||||
| Total from investment operations | 2.56 | (2.73 | ) | 3.62 | 2.05 | 3.25 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.13 | ) | (0.10 | ) | (0.05 | ) | (0.10 | ) | (0.23 | ) | |||||||||||
| Net realized gains | (0.03 | ) | (0.26 | ) | (0.87 | ) | (0.61 | ) | (1.21 | ) | |||||||||||
| Total distributions | (0.16 | ) | (0.36 | ) | (0.92 | ) | (0.71 | ) | (1.44 | ) | |||||||||||
| Net asset value, end of period | $ | 15.39 | $ | 12.99 | $ | 16.08 | $ | 13.38 | $ | 12.04 | |||||||||||
| Total Return (b) | 19.77 | % | –17.00 | % | 27.34 | % | 17.28 | % | 31.76 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 47,011 | $ | 34,244 | $ | 36,066 | $ | 20,747 | $ | 10,609 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.74 | % | |||||||||||
| Gross expenses | 0.80 | % | 0.81 | % | 0.76 | % | 1.27 | % | 1.00 | % | |||||||||||
| Net investment income (loss) | 0.93 | % | 0.72 | % | 0.52 | % | 0.91 | % | 1.09 | % | |||||||||||
| Portfolio turnover rate | 38 | % | 29 | % | 27 | % | 54 | % | 45 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
The accompanying notes are an integral part of these financial statements.
Annual Report 267
LAZARD US SMALL CAP EQUITY SELECT PORTFOLIO
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 12.21 | $ | 14.97 | $ | 14.42 | $ | 13.64 | $ | 10.83 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.01 | — | (b) | 0.01 | 0.04 | 0.06 | |||||||||||||||
| Net realized and unrealized gain (loss) | 1.19 | (2.24 | ) | 2.81 | 0.82 | 3.19 | |||||||||||||||
| Total from investment operations | 1.20 | (2.24 | ) | 2.82 | 0.86 | 3.25 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | — | — | (0.03 | ) | (0.02 | ) | (0.03 | ) | |||||||||||||
| Net realized gains | (0.99 | ) | (0.52 | ) | (2.24 | ) | (0.06 | ) | (0.41 | ) | |||||||||||
| Total distributions | (0.99 | ) | (0.52 | ) | (2.27 | ) | (0.08 | ) | (0.44 | ) | |||||||||||
| Net asset value, end of period | $ | 12.42 | $ | 12.21 | $ | 14.97 | $ | 14.42 | $ | 13.64 | |||||||||||
| Total Return (c) | 10.07 | % | –15.23 | % | 19.91 | % | 6.44 | % | 30.00 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 32,004 | $ | 34,882 | $ | 94,517 | $ | 91,984 | $ | 108,112 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.03 | % | 1.03 | % | 0.94 | % | 0.98 | % | 0.92 | % | |||||||||||
| Gross expenses | 1.25 | % | 1.05 | % | 0.94 | % | 0.98 | % | 0.92 | % | |||||||||||
| Net investment income (loss) | 0.05 | % | –0.03 | % | 0.05 | % | 0.31 | % | 0.46 | % | |||||||||||
| Portfolio turnover rate | 53 | % | 35 | % | 66 | % | 80 | % | 90 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
268 Annual Report
| Selected data for a share | |||||||||||||||||||||
| of capital stock outstanding | Year Ended | ||||||||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 10.98 | $ | 13.56 | $ | 13.25 | $ | 12.58 | $ | 10.03 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | (0.02 | ) | (0.03 | ) | (0.04 | ) | — | (b) | 0.01 | ||||||||||||
| Net realized and unrealized gain (loss) | 1.07 | (2.03 | ) | 2.59 | 0.75 | 2.95 | |||||||||||||||
| Total from investment operations | 1.05 | (2.06 | ) | 2.55 | 0.75 | 2.96 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | — | — | — | (b) | (0.02 | ) | — | ||||||||||||||
| Net realized gains | (0.99 | ) | (0.52 | ) | (2.24 | ) | (0.06 | ) | (0.41 | ) | |||||||||||
| Total distributions | (0.99 | ) | (0.52 | ) | (2.24 | ) | (0.08 | ) | (0.41 | ) | |||||||||||
| Net asset value, end of period | $ | 11.04 | $ | 10.98 | $ | 13.56 | $ | 13.25 | $ | 12.58 | |||||||||||
| Total Return (c) | 9.83 | % | –15.49 | % | 19.59 | % | 6.10 | % | 29.51 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 7,371 | $ | 7,750 | $ | 10,798 | $ | 10,965 | $ | 14,643 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.28 | % | 1.31 | % | 1.22 | % | 1.28 | % | 1.25 | % | |||||||||||
| Gross expenses | 1.57 | % | 1.36 | % | 1.22 | % | 1.28 | % | 1.25 | % | |||||||||||
| Net investment income (loss) | –0.20 | % | –0.27 | % | –0.24 | % | — | %(d) | 0.11 | % | |||||||||||
| Portfolio turnover rate | 53 | % | 35 | % | 66 | % | 80 | % | 90 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 269
| Selected data for a share | For the Period | ||||||||||||||||
| of capital stock outstanding | Year Ended | 1/8/20* | |||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | to 12/31/20 | |||||||||||||
| R6 Shares | |||||||||||||||||
| Net asset value, beginning of period | $ | 12.25 | $ | 14.98 | $ | 14.42 | $ | 13.62 | |||||||||
| Income (Loss) from investment operations: | |||||||||||||||||
| Net investment income (loss) (a) | 0.02 | (0.04 | ) | 0.01 | 0.04 | ||||||||||||
| Net realized and unrealized gain (loss) | 1.17 | (2.17 | ) | 2.82 | 0.84 | ||||||||||||
| Total from investment operations | 1.19 | (2.21 | ) | 2.83 | 0.88 | ||||||||||||
| Less distributions from: | |||||||||||||||||
| Net investment income | — | — | (0.03 | ) | (0.02 | ) | |||||||||||
| Net realized gains | (0.99 | ) | (0.52 | ) | (2.24 | ) | (0.06 | ) | |||||||||
| Total distributions | (0.99 | ) | (0.52 | ) | (2.27 | ) | (0.08 | ) | |||||||||
| Net asset value, end of period | $ | 12.45 | $ | 12.25 | $ | 14.98 | $ | 14.42 | |||||||||
| Total Return (c) | 9.95 | % | –15.01 | % | 19.95 | % | 6.59 | % | |||||||||
| Ratios and Supplemental Data: | |||||||||||||||||
| Net assets, end of period (in thousands) | $ | 39 | $ | 24 | $ | 718 | $ | 684 | |||||||||
| Ratios to average net assets: | |||||||||||||||||
| Net expenses | 0.97 | % | 1.03 | % | 0.93 | % | 0.96 | % | |||||||||
| Gross expenses | 1.23 | % | 1.51 | % | 2.53 | % | 1.65 | % | |||||||||
| Net investment income (loss) | 0.13 | % | –0.31 | % | 0.05 | % | 0.34 | % | |||||||||
| Portfolio turnover rate | 53 | % | 35 | % | 66 | % | 80 | % | |||||||||
| * | The inception date for the R6 shares was January 8, 2020. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Amount is less than $0.01 per share. |
| (c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (d) | Amount is less than 0.005%. |
The accompanying notes are an integral part of these financial statements.
270 Annual Report
LAZARD US SUSTAINABLE EQUITY PORTFOLIO
| Selected data for a share | For the Period | ||||||||||||||||
| of capital stock outstanding | Year Ended | 6/30/20 | |||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | to 12/31/20* | |||||||||||||
| Institutional Shares | |||||||||||||||||
| Net asset value, beginning of period | $ | 12.36 | $ | 15.41 | $ | 12.20 | $ | 10.00 | |||||||||
| Income (Loss) from investment operations: | |||||||||||||||||
| Net investment income (loss) (a) | 0.10 | 0.08 | 0.06 | 0.04 | |||||||||||||
| Net realized and unrealized gain (loss) | 1.86 | (2.86 | ) | 3.47 | 2.23 | ||||||||||||
| Total from investment operations | 1.96 | (2.78 | ) | 3.53 | 2.27 | ||||||||||||
| Less distributions from: | |||||||||||||||||
| Net investment income | (0.14 | ) | (0.08 | ) | (0.08 | ) | (0.04 | ) | |||||||||
| Net realized gains | (0.10 | ) | (0.19 | ) | (0.24 | ) | (0.03 | ) | |||||||||
| Total distributions | (0.24 | ) | (0.27 | ) | (0.32 | ) | (0.07 | ) | |||||||||
| Net asset value, end of period | $ | 14.08 | $ | 12.36 | $ | 15.41 | $ | 12.20 | |||||||||
| Total Return (b) | 15.88 | % | –18.07 | % | 29.01 | % | 22.69 | % | |||||||||
| Ratios and Supplemental Data: | |||||||||||||||||
| Net assets, end of period (in thousands) | $ | 11,239 | $ | 12,222 | $ | 14,687 | $ | 11,490 | |||||||||
| Ratios to average net assets (c): | |||||||||||||||||
| Net expenses | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | |||||||||
| Gross expenses | 1.66 | % | 1.84 | % | 2.08 | % | 2.49 | % | |||||||||
| Net investment income (loss) | 0.79 | % | 0.64 | % | 0.43 | % | 0.65 | % | |||||||||
| Portfolio turnover rate | 34 | % | 23 | % | 8 | % | 5 | % | |||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 271
| Selected data for a share | For the Period | ||||||||||||||||
| of capital stock outstanding | Year Ended | 6/30/20 | |||||||||||||||
| throughout each period | 12/31/23 | 12/31/22 | 12/31/21 | to 12/31/20* | |||||||||||||
| Open Shares | |||||||||||||||||
| Net asset value, beginning of period | $ | 12.37 | $ | 15.43 | $ | 12.21 | $ | 10.00 | |||||||||
| Income (Loss) from investment operations: | |||||||||||||||||
| Net investment income (loss) (a) | 0.07 | 0.05 | 0.02 | 0.02 | |||||||||||||
| Net realized and unrealized gain (loss) | 1.85 | (2.87 | ) | 3.48 | 2.23 | ||||||||||||
| Total from investment operations | 1.92 | (2.82 | ) | 3.50 | 2.25 | ||||||||||||
| Less distributions from: | |||||||||||||||||
| Net investment income | (0.10 | ) | (0.05 | ) | (0.04 | ) | (0.01 | ) | |||||||||
| Net realized gains | (0.10 | ) | (0.19 | ) | (0.24 | ) | (0.03 | ) | |||||||||
| Total distributions | (0.20 | ) | (0.24 | ) | (0.28 | ) | (0.04 | ) | |||||||||
| Net asset value, end of period | $ | 14.09 | $ | 12.37 | $ | 15.43 | $ | 12.21 | |||||||||
| Total Return (b) | 15.58 | % | –18.32 | % | 28.75 | % | 22.48 | % | |||||||||
| Ratios and Supplemental Data: | |||||||||||||||||
| Net assets, end of period (in thousands) | $ | 590 | $ | 537 | $ | 655 | $ | 128 | |||||||||
| Ratios to average net assets (c): | |||||||||||||||||
| Net expenses | 1.00 | % | 1.00 | % | 1.00 | % | 1.00 | % | |||||||||
| Gross expenses | 2.80 | % | 2.88 | % | 3.15 | % | 5.31 | % | |||||||||
| Net investment income (loss) | 0.56 | % | 0.39 | % | 0.17 | % | 0.43 | % | |||||||||
| Portfolio turnover rate | 34 | % | 23 | % | 8 | % | 5 | % | |||||||||
| * | The Portfolio commenced operations on June 30, 2020. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (c) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
272 Annual Report
LAZARD US SYSTEMATIC SMALL CAP EQUITY PORTFOLIO
| Selected data for a share | For the Period | ||||||||||||
| of capital stock outstanding | Year Ended | 10/29/21* | |||||||||||
| throughout each period | 12/31/23 | 12/31/22 | to 12/31/21 | ||||||||||
| Institutional Shares | |||||||||||||
| Net asset value, beginning of period | $ | 8.52 | $ | 10.26 | $ | 10.00 | |||||||
| Income (Loss) from investment operations: | |||||||||||||
| Net investment income (loss) (a) | 0.05 | 0.09 | 0.02 | ||||||||||
| Net realized and unrealized gain (loss) | 1.64 | (1.77 | ) | 0.26 | |||||||||
| Total from investment operations | 1.69 | (1.68 | ) | 0.28 | |||||||||
| Less distributions from: | |||||||||||||
| Net investment income | (0.04 | ) | (0.06 | ) | (0.02 | ) | |||||||
| Total distributions | (0.04 | ) | (0.06 | ) | (0.02 | ) | |||||||
| Net asset value, end of period | $ | 10.17 | $ | 8.52 | $ | 10.26 | |||||||
| Total Return (b) | 19.80 | % | –16.33 | % | 2.83 | % | |||||||
| Ratios and Supplemental Data: | |||||||||||||
| Net assets, end of period (in thousands) | $ | 39,779 | $ | 24,786 | $ | 3,983 | |||||||
| Ratios to average net assets (c): | |||||||||||||
| Net expenses | 0.90 | % | 0.90 | % | 0.90 | % | |||||||
| Gross expenses | 1.37 | % | 2.67 | % | 5.13 | % | |||||||
| Net investment income (loss) | 0.53 | % | 1.00 | % | 1.39 | % | |||||||
| Portfolio turnover rate | 110 | % | 74 | % | 22 | % | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 273
| Selected data for a share | For the Period | ||||||||||||
| of capital stock outstanding | Year Ended | 10/29/21* | |||||||||||
| throughout each period | 12/31/23 | 12/31/22 | to 12/31/21 | ||||||||||
| Open Shares | |||||||||||||
| Net asset value, beginning of period | $ | 8.54 | $ | 10.28 | $ | 10.00 | |||||||
| Income (Loss) from investment operations: | |||||||||||||
| Net investment income (loss) (a) | 0.02 | 0.06 | 0.02 | ||||||||||
| Net realized and unrealized gain (loss) | 1.65 | (1.76 | ) | 0.26 | |||||||||
| Total from investment operations | 1.67 | (1.70 | ) | 0.28 | |||||||||
| Less distributions from: | |||||||||||||
| Net investment income | (0.01 | ) | (0.04 | ) | — | ||||||||
| Total distributions | (0.01 | ) | (0.04 | ) | — | ||||||||
| Net asset value, end of period | $ | 10.20 | $ | 8.54 | $ | 10.28 | |||||||
| Total Return (b) | 19.58 | % | –16.51 | % | 2.80 | % | |||||||
| Ratios and Supplemental Data: | |||||||||||||
| Net assets, end of period (in thousands) | $ | 140 | $ | 102 | $ | 120 | |||||||
| Ratios to average net assets (c): | |||||||||||||
| Net expenses | 1.15 | % | 1.15 | % | 1.15 | % | |||||||
| Gross expenses | 4.59 | % | 5.52 | % | 13.16 | % | |||||||
| Net investment income (loss) | 0.25 | % | 0.66 | % | 1.14 | % | |||||||
| Portfolio turnover rate | 110 | % | 74 | % | 22 | % | |||||||
The accompanying notes are an integral part of these financial statements.
274 Annual Report
| Selected data for a share | For the Period | ||||
| of capital stock outstanding | 2/22/23** | ||||
| throughout each period | to 12/31/23 | ||||
| R6 Shares | |||||
| Net asset value, beginning of period | $ | 9.16 | |||
| Income (Loss) from investment operations: | |||||
| Net investment income (loss) (a) | 0.05 | ||||
| Net realized and unrealized gain (loss) | 1.00 | ||||
| Total from investment operations | 1.05 | ||||
| Less distributions from: | |||||
| Net investment income | (0.04 | ) | |||
| Total distributions | (0.04 | ) | |||
| Net asset value, end of period | $ | 10.17 | |||
| Total Return (b) | 11.48 | % | |||
| Ratios and Supplemental Data: | |||||
| Net assets, end of period (in thousands) | $ | 111 | |||
| Ratios to average net assets (c): | |||||
| Net expenses | 0.85 | % | |||
| Gross expenses | 7.09 | % | |||
| Net investment income (loss) | 0.63 | % | |||
| Portfolio turnover rate | 110 | % | |||
| * | The Portfolio commenced operations on October 29, 2021. |
| ** | The inception date for the R6 Shares was February 22, 2023. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (c) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
Annual Report 275
The Lazard Funds, Inc. Notes to Financial Statements
December 31, 2023
1. Organization
The Lazard Funds, Inc. was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of December 31, 2023, the Fund was comprised of twenty-seven no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of the Lazard Developing Markets Equity Portfolio (“Developing Markets Equity”), Lazard Emerging Markets Core Equity Portfolio (“Emerging Markets Core Equity”), Lazard Emerging Markets Equity Advantage Portfolio (“Emerging Markets Equity Advantage”), Lazard Emerging Markets Equity Portfolio (“Emerging Markets Equity”), Lazard Equity Franchise Portfolio (“Equity Franchise”), Lazard Global Equity Select Portfolio (“Global Equity Select”), Lazard Global Listed Infrastructure Portfolio (“Global Listed Infrastructure”), Lazard Global Strategic Equity Portfolio (“Global Strategic Equity”), Lazard International Equity Advantage Portfolio (“International Equity Advantage”), Lazard International Equity Portfolio (“International Equity”), Lazard International Equity Select Portfolio (“International Equity Select”), Lazard International Quality Growth Portfolio (“International Quality Growth”), Lazard International Small Cap Equity Portfolio (“International Small Cap Equity”), Lazard International Strategic Equity Portfolio (“International Strategic Equity”), Lazard Managed Equity Volatility Portfolio (“Managed Equity Volatility”), Lazard US Equity Concentrated Portfolio (“US Equity Concentrated”), Lazard US Equity Focus Portfolio (“US Equity Focus”), Lazard US Small Cap Equity Select Portfolio (“US Small Cap Equity Select”, which was formerly the Lazard US Small-Mid Cap Equity Portfolio), Lazard US Sustainable Equity Portfolio (“US Sustainable Equity”), and Lazard US Systematic Small Cap Equity Portfolio (“US Systematic Small Cap Equity”). The financial statements of the other seven Portfolios are presented separately.
The Portfolios, other than Equity Franchise, US Equity Concentrated and US Equity Focus, are operated as “diversified” funds, as defined in the 1940 Act.
276 Annual Report
Each Portfolio currently offers Institutional Shares and Open Shares, and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum investment requirements; eligibility requirements for R6 Shares; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Portfolios’ prospectus).
2. Significant Accounting Policies
The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in accordance with Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:
(a) Valuation of Investments—Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants, and exchange traded funds, are valued at the last reported sales price (for US listed equity securities) or the closing price (for non-US listed equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the Nasdaq, the Nasdaq Official Closing Price. If there is no available closing price for a non-US listed equity security, the last reported sales price is used. If there are no reported sales of a security on the valuation date, the security is valued at the most recent quoted bid price on such date reported by such principal exchange or market. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s net asset value (“NAV”) per share.
Trading on certain non-US securities exchanges or markets, such as those in Europe and Asia, ordinarily may be completed before the close of business on each business day in New York (i.e., a day on which the New York Stock Exchange (the “NYSE”) is open). In addition, securities in non-US countries, may not trade on all business days in New York and on which the NAV of a Portfolio is calculated.
Events occurring after the close of trading on foreign exchanges may affect the fair value of foreign securities as of the close of regular trading on the NYSE, when the Portfolios’ NAVs
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are calculated. When valuing foreign equity securities, the Portfolios use an independent pricing service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments, which have a strong correlation to the fair-valued securities.
The Board of Directors (the “Board”) has designated the Investment Manager to perform fair value determinations pursuant to Rule 2a-5 under the 1940 Act. The Investment Manager has created a Valuation Sub-Committee of the Funds’ Valuation and Liquidity Committee, which may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio management team also will be considered. 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 non-US securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by a Portfolio. Interest income, if any, is accrued daily.
A Portfolio may be subject to taxes imposed by non-US countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized and/or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income earned or capital gains (realized and/or unrealized) from the applicable portfolio securities.
As a result of several court cases in certain countries across the European Union, some Portfolios have filed tax reclaims for previously withheld taxes on dividends earned in certain
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European Union countries. These filings are subject to various administrative proceedings by the local jurisdictions’ tax authorities within the European Union, as well as a number of related judicial proceedings. Uncertainty exists as to the ultimate resolution of these proceedings, the likelihood of receipt of these claims, and the potential timing of payment, and accordingly no amounts are reflected in the financial statements until a positive decision has been awarded, at which time the amount will be recorded within dividend income on the Statement of Operations. Such amounts, if and when recorded, would increase dividend income, resulting in an increase in a Portfolio’s NAV per share.
(c) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Fund are maintained in US dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.
The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments.
A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Daily fluctuations in the value of forward currency contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, the Portfolio records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed. Net realized gain (loss) on foreign currency transactions and forward currency contracts represent net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference
Annual Report 279
between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency translations reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.
During the year ended December 31, 2023, the Global Listed Infrastructure Portfolio traded in forward currency contracts.
(d) Federal Income Taxes—The Fund’s policy is for each Portfolio to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.
At December 31, 2023, the following Portfolios had unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains with no expiration date as follows:
| Portfolio | Short-Term | Long-Term | ||||||
| Developing Markets Equity | $ | (68,578,029 | ) | $ | (54,943,989 | ) | ||
| Emerging Markets Core Equity* | (23,616,840 | ) | (51,909,049 | ) | ||||
| Emerging Markets Equity Advantage | (5,666,782 | ) | (4,984,133 | ) | ||||
| Emerging Markets Equity | (215,667,495 | ) | (792,171,106 | ) | ||||
| Global Listed Infrastructure | (169,781,834 | ) | (166,378,697 | ) | ||||
| Global Strategic Equity | (590,173 | ) | (28,631 | ) | ||||
| International Equity Advantage | (36,034 | ) | — | |||||
| International Equity Select | (2,151,617 | ) | — | |||||
| International Quality Growth | — | (3,118,404 | ) | |||||
| International Small Cap Equity | (1,519,692 | ) | (490,523 | ) | ||||
| International Strategic Equity | (117,501,638 | ) | — | |||||
| US Systematic Small Cap Equity Portfolio | (1,761,827 | ) | — | |||||
| * | At December 31, 2023, $10,554,900 of the unused short-term realized capital loss carryovers and $38,811,325 of the unused long-term realized capital loss carryovers, which were acquired from Lazard Emerging Markets Strategic Equity Portfolio on June 22, 2023, are subject to annual limitations on their use to offset realized capital gains. |
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Under current tax law, post-October capital losses or certain lateyear ordinary losses, as defined by the Code, within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the tax year ended December 31, 2023, the Portfolios had no such losses to defer.
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) | ||||||||||||
| Developing Markets Equity | $ | 74,619,062 | $ | 26,709,250 | $ | 8,632,779 | $ | 18,076,471 | ||||||||
| Emerging Markets Core Equity | 100,948,859 | 27,250,229 | 9,565,300 | 17,684,929 | ||||||||||||
| Emerging Markets Equity Advantage | 129,642,127 | 16,109,946 | 12,955,711 | 3,154,235 | ||||||||||||
| Emerging Markets Equity | 2,451,087,859 | 568,456,294 | 306,134,142 | 262,322,152 | ||||||||||||
| Equity Franchise | 107,723,277 | 13,350,578 | 2,574,730 | 10,775,848 | ||||||||||||
| Global Equity Select | 65,303,730 | 34,797,629 | 2,267,738 | 32,529,891 | ||||||||||||
| Global Listed Infrastructure | 7,953,166,915 | 1,354,169,220 | 638,373,700 | 715,795,520 | ||||||||||||
| Global Strategic Equity | 9,840,133 | 1,440,635 | 364,724 | 1,075,911 | ||||||||||||
| International Equity Advantage | 18,819,150 | 684,919 | 109,700 | 575,219 | ||||||||||||
| International Equity | 956,357,590 | 224,287,388 | 70,707,396 | 153,579,992 | ||||||||||||
| International Equity Select | 46,142,052 | 9,771,628 | 3,449,514 | 6,322,114 | ||||||||||||
| International Quality Growth | 242,525,886 | 28,035,252 | 13,075,862 | 14,959,390 | ||||||||||||
| International Small Cap Equity | 11,700,929 | 1,159,330 | 940,919 | 218,411 | ||||||||||||
| International Strategic Equity | 3,377,730,902 | 1,075,366,995 | 114,796,051 | 960,570,944 | ||||||||||||
| Managed Equity Volatility | 16,927,988 | 1,588,433 | 548,589 | 1,039,844 | ||||||||||||
| US Equity Concentrated | 138,893,003 | 66,852,436 | 1,018,742 | 65,833,694 | ||||||||||||
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| Portfolio | Aggregate Cost | Aggregate Gross Unrealized Appreciation | Aggregate Gross Unrealized Depreciation | Net Unrealized Appreciation (Depreciation) | ||||||||||||
| US Equity Focus | $ | 64,709,598 | $ | 28,186,004 | $ | 995,482 | $ | 27,190,522 | ||||||||
| US Small Cap Equity Select | 32,090,364 | 8,310,649 | 1,981,021 | 6,329,628 | ||||||||||||
| US Sustainable Equity | 8,696,270 | 3,300,054 | 137,231 | 3,162,823 | ||||||||||||
| US Systematic Small Cap Equity | 33,621,017 | 7,301,548 | 809,766 | 6,491,782 | ||||||||||||
Management has analyzed the Portfolios’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. Each Portfolio files a US federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
(e) Dividends and Distributions—For each Portfolio, income dividends are declared and paid annually, except that the Global Listed Infrastructure Portfolio’s dividends from net investment income (if any), will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders, but may be distributed more frequently. Differences in per share distributions, by class, are generally due to differences in class specific expenses.
The Emerging Markets Core Equity, Emerging Markets Equity Advantage, Emerging Markets Equity, Equity Franchise, Global Strategic Equity, International Equity, International Small Cap Equity, US Equity Concentrated and US Small Cap Equity Select Portfolios, intend, on their 2023 tax returns, to elect to treat as a distribution of investment company taxable income and net capital gain the portion of redemption proceeds paid to redeeming shareholders that represents the redeeming shareholders’ portion of the Portfolios’
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undistributed investment company taxable income and net capital gain. This practice, which involves the use of equalization accounting, will have the effect of reducing the amount of income and gains that the Portfolios would otherwise be required to distribute as dividends to shareholders in order for the Portfolios to avoid federal income and excise taxes. This practice reduces the amount of distributions required to be made to non-redeeming shareholders and defers the recognition of taxable income by such shareholders. However, since the amount of any undistributed income will be reflected in the value of the Portfolios’ shares, the total return on a shareholder’s investment is not affected by the Portfolios’ use of equalization.
Real estate investment trust (“REIT”) distributions received by a Portfolio are generally comprised of ordinary income, long-term capital gains and a return of REIT capital. However, as the actual character of such distributions received are not known until after the calendar year end, distributions made by a Portfolio during the year are subject to re-characterization that may result in some portion of the distributions being reclassified as a return of capital distribution to Portfolio shareholders.
Income and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency gains and losses, wash sales, merger activity, passive foreign investment companies, expiring capital loss carryovers, forward currency mark to market, net operating loss, certain expenses, foreign capital gains taxes, non-deductible organization expenses, REIT basis adjustments, distribution in excess of current earnings, equalization accounting (as described above), non-REIT non-taxable dividend adjustment to income, distributions redesignations, return of capital distributions, receivable from tax reclaim and distributions from real estate investment trusts and partnerships.
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The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:
| Portfolio | Paid in Capital | Distributable Earnings (Accumulated Loss) | ||||||
| Developing Markets Equity | $ | 169,472 | $ | (169,472 | ) | |||
| Emerging Markets Core Equity | 97,278 | (97,278 | ) | |||||
| Emerging Markets Equity Advantage | 276,736 | (276,736 | ) | |||||
| Emerging Markets Equity | 7,344,381 | (7,344,381 | ) | |||||
| Equity Franchise | 779,275 | (779,275 | ) | |||||
| Global Equity Select | 165,318 | (165,318 | ) | |||||
| Global Listed Infrastructure | (1,112,949 | ) | 1,112,949 | |||||
| Global Strategic Equity | 4,986 | (4,986 | ) | |||||
| International Equity | 6,760,436 | (6,760,436 | ) | |||||
| International Equity Select | 82,144 | (82,144 | ) | |||||
| International Quality Growth | 19,584 | (19,584 | ) | |||||
| International Small Cap Equity | 18,851 | (18,851 | ) | |||||
| International Strategic Equity | 4,959,325 | (4,959,325 | ) | |||||
| Managed Equity Volatility | 37,360 | (37,360 | ) | |||||
| US Equity Concentrated | 160,856,567 | (160,856,567 | ) | |||||
| US Equity Focus | 257 | (257 | ) | |||||
| US Small Cap Equity Select | 57,534 | (57,534 | ) | |||||
| US Sustainable Equity | 17,166 | (17,166 | ) | |||||
| US Systematic Small Cap Equity Portfolio | (42,582 | ) | 42,582 | |||||
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The tax character of dividends and distributions paid during the years ended December 31, were as follows:
| Ordinary Income | Long-Term Capital Gain | |||||||||||||||
| Portfolio | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Developing Markets Equity* | $ | 2,021,287 | $ | 737,410 | $ | — | $ | — | ||||||||
| Emerging Markets Core Equity | 1,779,265 | 1,946,526 | — | — | ||||||||||||
| Emerging Markets Equity Advantage | 2,482,708 | 1,632,469 | — | 274,642 | ||||||||||||
| Emerging Markets Equity | 97,073,876 | 144,343,772 | — | — | ||||||||||||
| Equity Franchise | 9,486,402 | 5,741,616 | — | 12,205,692 | ||||||||||||
| Global Equity Select | 738,104 | 531,256 | 1,089,454 | 401,381 | ||||||||||||
| Global Listed Infrastructure | 256,036,712 | 617,886,544 | — | 488,053,713 | ||||||||||||
| Global Strategic Equity | 45,613 | 46,028 | — | 19,473 | ||||||||||||
| International Equity Advantage | 77,179 | 78,363 | — | 12,710 | ||||||||||||
| International Equity | 30,480,846 | 18,675,321 | 11,858,271 | 51,354,094 | ||||||||||||
| International Equity Select | 778,058 | 980,492 | — | 247,167 | ||||||||||||
| International Quality Growth | 1,585,377 | 775,087 | — | 517,722 | ||||||||||||
| International Small Cap Equity | 232,238 | 110,815 | — | 797,519 | ||||||||||||
| International Strategic Equity* | 62,446,169 | 62,860,646 | — | — | ||||||||||||
| Managed Equity Volatility | 503,919 | 629,794 | 207,733 | 229,766 | ||||||||||||
| US Equity Concentrated | 15,683,328 | 10,886,247 | 141,678,406 | 66,586,092 | ||||||||||||
| US Equity Focus | 778,558 | 556,355 | 206,582 | 1,492,055 | ||||||||||||
| US Small Cap Equity Select | 118,408 | — | 2,977,480 | 2,335,222 | ||||||||||||
| US Sustainable Equity | 191,007 | 80,977 | 31,152 | 189,779 | ||||||||||||
| US Systematic Small Cap Equity | 143,679 | 185,691 | — | 353 | ||||||||||||
| * | Developing Markets Equity Portfolio had return of capital distribution of $0 in 2023 and $62,544 in 2022. |
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At December 31, 2023, the components of distributable earnings (accumulated loss), on a tax basis, were as follows:
| Portfolio | Undistributed Ordinary Income (Deferred Ordinary Losses) | Undistributed Long-Term Capital Gain (Deferred Capital Losses) | Net Unrealized Appreciation (Depreciation) Including Foreign Currency | |||||||||
| Developing Markets Equity | $ | — | $ | (123,522,018 | ) | $ | 17,931,832 | |||||
| Emerging Markets Core Equity | 297,518 | (75,525,889 | ) | 17,350,910 | ||||||||
| Emerging Markets Equity Advantage | 210,348 | (10,650,915 | ) | 2,720,735 | ||||||||
| Emerging Markets Equity | — | (1,007,838,601 | ) | 258,882,960 | ||||||||
| Equity Franchise | — | — | 10,763,732 | |||||||||
| Global Equity Select | — | 249,855 | 32,532,004 | |||||||||
| Global Listed Infrastructure | — | (336,160,531 | ) | 716,079,582 | ||||||||
| Global Strategic Equity | 18,330 | (618,804 | ) | 1,058,746 | ||||||||
| International Equity Advantage | 28,876 | (34,032 | ) | 575,445 | ||||||||
| International Equity | 6,377,361 | 6,816,402 | 153,757,174 | |||||||||
| International Equity Select | 52,119 | (2,151,617 | ) | 6,328,036 | ||||||||
| International Quality Growth | — | (3,118,404 | ) | 14,924,736 | ||||||||
| International Small Cap Equity | 6,998 | (2,010,215 | ) | 218,957 | ||||||||
| International Strategic Equity | 5,688,531 | (117,501,638 | ) | 958,896,092 | ||||||||
| Managed Equity Volatility | 17,754 | 117,154 | 1,041,727 | |||||||||
| US Equity Concentrated | — | — | 65,833,694 | |||||||||
| US Equity Focus | — | 168,405 | 27,190,523 | |||||||||
| US Small Cap Equity Select | 41,194 | 1,639,682 | 6,329,629 | |||||||||
| US Sustainable Equity | 6,838 | 380,103 | 3,142,934 | |||||||||
| US Systematic Small Cap Equity | — | (1,761,827 | ) | 6,491,782 | ||||||||
(f) Offering and Organizational Costs—Costs incurred by the Fund in connection with the offering of shares of a new Portfolio or share class of a Portfolio are deferred and amortized on a straight line basis over a twelve-month period from the date of commencement of operations of the Portfolio or share class. The Investment Manager will generally pay for any offering costs
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incurred by a new Portfolio and be reimbursed by that Portfolio within the amortization period. Organizational costs are expensed as incurred.
(g) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., and Lazard Global Total Return and Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios primarily on the basis of relative net assets. Portfolios accrue distribution and service (12b-1) fees to Open Shares. Each Portfolio’s income, expenses (other than class specific expenses) and realized and unrealized gains and losses are allocated proportionally each day between the classes based upon the relative net assets of each class.
(h) Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates.
(i) Net Asset Value—The NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. The NAV per share of a class is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.
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3. Investment Management, Administration, Custody, Distribution and Transfer Agency Agreements
The Fund, on behalf of the Portfolios, has entered into a management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager manages the investment operations of each Portfolio and the assets of each Portfolio, including the purchase, retention and disposition thereof, in accordance with the Portfolio’s investment objectives, policies, and restrictions, and provides the Portfolios with administrative, operational and compliance assistance services. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:
| Portfolio | Annual Rate | |||
| Developing Markets Equity | 1.00 | % | ||
| Emerging Markets Core Equity | 1.00 | |||
| Emerging Markets Equity Advantage | 0.75 | |||
| Emerging Markets Equity | 1.00 | |||
| Equity Franchise | 0.80 | |||
| Global Equity Select | 0.65 | |||
| Global Listed Infrastructure | 0.90 | |||
| Global Strategic Equity | 0.75 | |||
| International Equity Advantage | 0.65 | |||
| International Equity | 0.75 | |||
| International Equity Select | 0.65 | |||
| International Quality Growth | 0.75 | |||
| International Small Cap Equity | 0.75 | |||
| International Strategic Equity | 0.75 | |||
| Managed Equity Volatility | 0.60 | |||
| US Equity Concentrated | 0.70 | |||
| US Equity Focus | 0.55 | |||
| US Small Cap Equity Select | 0.75 | |||
| US Sustainable Equity | 0.60 | |||
| US Systematic Small Cap Equity | 0.70 | |||
The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse a Portfolio until May 1, 2024 (or such other date as indicated below) if the aggregate direct expenses of the Portfolio, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of “Acquired Funds” (as defined in Form N-1A), fees and expenses related to filing foreign tax reclaims and extraordinary expenses, exceed an applicable percentage of the
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value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name in the table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expenses.
| Portfolio | Institutional Shares | Open Shares | R6 Shares | |||||||||
| Developing Markets Equity (a) | 1.10 | % | 1.35 | % | N/A | % | ||||||
| Emerging Markets Core Equity (b) | 1.10 | 1.35 | 1.05 | |||||||||
| Emerging Markets Equity Advantage | 0.90 | 1.15 | 0.85 | |||||||||
| Emerging Markets Equity | 1.20 | 1.45 | 1.15 | |||||||||
| Equity Franchise | 0.95 | 1.20 | N/A | |||||||||
| Global Equity Select | 0.90 | 1.15 | N/A | |||||||||
| Global Listed Infrastructure (c) | 1.20 | 1.45 | N/A | |||||||||
| Global Strategic Equity* | 0.90 | 1.15 | N/A | |||||||||
| International Equity Advantage** | 0.80 | 1.05 | N/A | |||||||||
| International Equity | 0.85 | 1.10 | 0.80 | |||||||||
| International Equity Select (d) | 0.90 | 1.15 | N/A | |||||||||
| International Quality Growth (e) | 0.85 | 1.10 | 0.80 | |||||||||
| International Small Cap Equity (f) | 1.03 | 1.28 | N/A | |||||||||
| International Strategic Equity | 1.05 | 1.30 | 1.00 | |||||||||
| Managed Equity Volatility | 0.75 | 1.00 | N/A | |||||||||
| US Equity Concentrated (g) | 0.90 | 1.15 | 0.85 | |||||||||
| US Equity Focus | 0.70 | 0.95 | 0.70 | |||||||||
| US Small Cap Equity Select (h) | 1.00 | 1.25 | 0.95 | |||||||||
| US Sustainable Equity | 0.75 | 1.00 | N/A | |||||||||
| US Systematic Small Cap Equity | 0.90 | 1.15 | 0.85 | |||||||||
| (a) | From January 1, 2023 to June 28, 2023, annual rates were 1.15% and 1.40%. |
| (b) | From January 1, 2023 to May 1, 2023, annual rates were 1.20%, 1.45% and 1.15%. |
| (c) | This agreement will continue in effect until May 1, 2033. |
| (d) | This agreement will continue in effect until May 1, 2024, and from May 1, 2024 until May 1, 2033 at levels of 1.15%, 1.40% and 1.10%, respectively. |
| (e) | This agreement will continue in effect until May 1, 2033 for Open Shares. |
| (f) | From January 1, 2023 to June 28, 2023, annual rates were 1.13% and 1.38%. |
| (g) | This agreement will continue in effect until May 1, 2024, and from May 1, 2024 until May 1, 2033, at levels of 1.10%, 1.35% and 1.05%, respectively. |
| (h) | From January 1, 2023 to June 28, 2023, annual rates were 1.05%, 1.30% and 1.00%. |
| * | From January 1, 2023 to May 1, 2023, annual rates were 0.80% and 1.05%. |
| ** | From January 1, 2023 to May 1, 2023, annual rates were 0.90% and 1.15%. |
In addition, until May 1, 2024, to the extent the “Total Annual Fund Operating Expenses” (as used in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Fund Operating Expenses of the Portfolio’s Institutional Shares (in each case, not including management fees, custodial fees or other expenses related to the management of the Portfolio’s assets), the Investment Manager will bear the expenses of the R6 Shares in the amount of such excess.
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During the year ended December 31, 2023, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:
| Institutional Shares | Open Shares | ||||||||||||||||
| Portfolio | Management Fees Waived | Expenses Reimbursed | Management Fees Waived | Expenses Reimbursed | |||||||||||||
| Developing Markets Equity | $ | 103,889 | $ | — | $ | 12,449 | $ | — | |||||||||
| Emerging Markets Core Equity | 127,095 | — | 7,321 | — | |||||||||||||
| Emerging Markets Equity Advantage | 92,923 | — | 1,657 | 2,281 | |||||||||||||
| Equity Franchise | 4,434 | — | 1,963 | 1,760 | |||||||||||||
| Global Equity Select | — | — | 5,250 | — | |||||||||||||
| Global Strategic Equity | 78,900 | 59,281 | 763 | 5,608 | |||||||||||||
| International Equity Advantage | 18,111 | 117,198 | 3,985 | 24,690 | |||||||||||||
| International Equity Select | 57,224 | — | 8,561 | — | |||||||||||||
| International Quality Growth | 80,585 | — | 5,183 | — | |||||||||||||
| International Small Cap Equity | 39,735 | 16,116 | 56,573 | 20,316 | |||||||||||||
| Managed Equity Volatility | 136,777 | 1,652 | 498 | 5,169 | |||||||||||||
| US Equity Focus | 39,160 | — | 4,869 | — | |||||||||||||
| US Small Cap Equity Select | 72,801 | — | 22,149 | — | |||||||||||||
| US Sustainable Equity | 83,885 | 42,734 | 3,274 | 6,533 | |||||||||||||
| US Systematic Small Cap Equity | 135,913 | — | 801 | 3,135 | |||||||||||||
| R6 Shares | |||||||||
| Portfolio | Management Fees Waived | Expenses Reimbursed | |||||||
| Emerging Markets Core Equity | $ | 1,855 | $ | 1,808 | |||||
| Emerging Markets Equity Advantage | 780 | 4,813 | |||||||
| Emerging Markets Equity | 3,572 | — | |||||||
| International Equity | 27,378 | — | |||||||
| International Quality Growth | 242 | 4,714 | |||||||
| International Strategic Equity | 5,763 | — | |||||||
| US Equity Concentrated | 927 | — | |||||||
| US Equity Focus | 42,838 | — | |||||||
| US Small Cap Equity Select | 83 | — | |||||||
| US Systematic Small Cap Equity | 600 | 4,763 | |||||||
The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.
State Street serves as the Fund’s custodian and provides the Fund with certain administrative services.
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The Fund has a distribution agreement with Lazard Asset Management Securities LLC (the “Distributor”), a wholly-owned subsidiary of the Investment Manager, to serve as the distributor for shares of each Portfolio. The Distributor bears, amongst other expenses, the cost of preparing and distributing materials used by the Distributor in connection with its offering Portfolio shares and other advertising and promotional expenses.
Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net assets of its Open Shares, for certain distribution activities and providing services to holders of the Portfolio’s Open Shares. The Distributor may make payments to third parties such as financial institutions, securities dealers and other industry professionals in respect of these services.
SS&C GIDS is the Fund’s transfer agent and dividend disbursing agent.
4. Directors’ Compensation
Certain Directors of the Fund are officers of the Investment Manager. The annual compensation in 2023 for each Director who is not an affiliated person of the Investment Manager or any of its affiliates that is payable by all of the funds in the Lazard Fund Complex, is comprised of: (1) an annual fee of $245,000, (2) an additional annual fee of $35,000 to the lead Independent Director, and (3) an additional annual fee of $25,000 to the Audit Committee Chair. The Independent Directors (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund) also may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. The Independent Directors are also reimbursed for travel and other out-of-pocket expenses for attending Board and Committee meetings. Effective January 1, 2024, the annual compensation for each Director who is not an affiliated person of the Investment Manager or any of its affiliates that is payable by all of the funds in the Lazard Fund Complex, is comprised of: (1) an annual fee of $252,500, (2) an
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additional annual fee of $35,000 to the lead Independent Director, and (3) an additional annual fee of $25,000 to the Audit Committee Chair. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees and expenses are allocated among the active Portfolios in the Lazard Fund Complex at a rate of $5,000 per active portfolio with the remainder allocated among the active portfolios on the basis of relative net assets. The Statements of Operations show the Independent Directors’ fees and expenses paid by each Portfolio.
5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2023 were as follows:
| Portfolio | Purchases | Sales | ||||||
| Developing Markets Equity | $ | 23,569,007 | $ | 35,095,669 | ||||
| Emerging Markets Core Equity | 81,613,146 | 105,833,037 | ||||||
| Emerging Markets Equity Advantage | 110,064,329 | 67,398,570 | ||||||
| Emerging Markets Equity | 646,749,448 | 953,934,928 | ||||||
| Equity Franchise | 115,481,576 | 170,380,943 | ||||||
| Global Equity Select | 4,873,713 | 14,900,978 | ||||||
| Global Listed Infrastructure | 2,038,246,372 | 1,946,512,252 | ||||||
| Global Strategic Equity | 5,942,041 | 6,980,482 | ||||||
| International Equity Advantage | 19,778,717 | 3,653,779 | ||||||
| International Equity | 522,636,103 | 529,970,597 | ||||||
| International Equity Select | 16,413,834 | 22,764,078 | ||||||
| International Quality Growth | 131,363,546 | 17,951,689 | ||||||
| International Small Cap Equity | 5,650,271 | 9,290,891 | ||||||
| International Strategic Equity | 1,879,038,883 | 2,703,961,532 | ||||||
| Managed Equity Volatility | 18,918,081 | 30,827,676 | ||||||
| US Equity Concentrated | 548,402,039 | 1,675,830,231 | ||||||
| US Equity Focus | 33,090,581 | 30,534,205 | ||||||
| US Small Cap Equity Select | 20,933,056 | 28,206,783 | ||||||
| US Sustainable Equity | 4,694,698 | 7,206,085 | ||||||
| US Systematic Small Cap Equity | 41,656,379 | 32,231,498 | ||||||
For the year ended December 31, 2023, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.
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At December 31, 2023, the Investment Manager owned 13.82%, 63.50% and 69.73% of the outstanding shares of the Lazard International Equity Advantage, Lazard US Sustainable Equity and Lazard US Systematic Small Cap Equity, respectively.
Holdings of 5% Voting Securities of Portfolio Companies
The 1940 Act defines “affiliated persons” to include a portfolio company in which a Portfolio owns 5% or more of the outstanding voting securities. Investments in “affiliated persons” for the Global Listed Infrastructure Portfolio for the year ended December 31, 2023 were as follows:
| Issue | Value at December 31, 2022 | Purchase cost | Sales proceeds | Realized gain (loss) | |||||||||||||
| Global Listed Infrastructure | |||||||||||||||||
| Atlas Arteria Ltd. | $ | 355,284,219 | $ | 21,238,470 | $ | — | $ | — | |||||||||
| Italgas SpA* | 246,294,741 | 8,562,892 | (45,269,692 | ) | (371,808 | ) | |||||||||||
| Pennon Group PLC | 154,093,807 | — | — | — | |||||||||||||
| SES SA | 132,690,782 | 4,467,344 | — | — | |||||||||||||
| Total Securities | $ | 888,363,549 | $ | 34,268,706 | $ | (45,269,692 | ) | $ | (371,808 | ) | |||||||
| Issue | Change in unrealized appreciation (depreciation) | Dividend income | Shares at December 31, 2023 | Values at December 31, 2023 | |||||||||||||
| Atlas Arteria, Ltd. | $ | (46,622,041 | ) | $ | 21,536,326 | 83,962,746 | $ | 329,900,648 | |||||||||
| Italgas SpA* | 10,005,628 | 11,221,577 | — | — | |||||||||||||
| Pennon Group PLC | (15,635,969 | ) | 7,787,072 | 14,334,169 | 138,457,838 | ||||||||||||
| SES SA | 2,064,278 | 9,465,529 | 21,066,589 | 139,222,404 | |||||||||||||
| Total Securities | $ | (50,188,104 | ) | $ | 50,010,504 | 119,363,504 | $ | 607,580,890 | |||||||||
| * | This security was deemed to no longer meet the criteria of an affiliated company at the reporting date and is therefore excluded from non-controlled affiliated issuers, at fair value on the Statement of Assets and Liabilities. Dividend income, realized gain/loss, and change in unrealized appreciation (depreciation) earned during the period is reported within the respective noncontrolled affiliated issuers financial statement categories on the Statement of Operations. |
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6. Line of Credit
The Fund has a $100 million committed line of credit pursuant to an Amended and Restated Loan Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at 1.00% plus the “Applicable Rate,” which is the higher of (a) the Federal Funds Rate plus 10 basis points and (b) the Overnight Bank Funding Rate (OBFR) plus 10 basis points, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the year ended December 31, 2023, the following Portfolios had borrowings under the Agreement as follows:
| Portfolio | Average Daily Loan Balance* | Maximum Daily Loan Outstanding | Weighted Average Interest Rate | Number of Days Borrowings were Outstanding | |||||||||||||
| Developing Markets Equity | $ | 1,616,329 | $ | 3,324,886 | 6.43 | % | 10 | ||||||||||
| Emerging Markets Core Equity | 2,035,809 | 14,068,904 | 6.25 | 14 | |||||||||||||
| Emerging Markets Equity Advantage | 495,095 | 1,507,023 | 6.38 | 6 | |||||||||||||
| Emerging Markets Equity | 21,520,000 | 21,520,000 | 5.67 | 3 | |||||||||||||
| Equity Franchise | 3,690,593 | 3,690,593 | 6.43 | 3 | |||||||||||||
| Global Equity Select | 268,303 | 903,100 | 5.59 | 5 | |||||||||||||
| Global Strategic Equity | 1,265,000 | 1,265,000 | 5.43 | 1 | |||||||||||||
| International Equity Advantage | 167,093 | 167,093 | 6.17 | 3 | |||||||||||||
| International Equity | 14,033,667 | 17,261,000 | 5.43 | 3 | |||||||||||||
| International Equity Select | 228,549 | 607,900 | 5.91 | 8 | |||||||||||||
| International Quality Growth | 6,646,000 | 6,646,000 | 5.43 | 2 | |||||||||||||
| International Small Cap Equity | 620,850 | 1,005,350 | 5.68 | 2 | |||||||||||||
| International Strategic Equity | 14,258,205 | 60,751,100 | 5.85 | 25 | |||||||||||||
| Managed Equity Volatility | 763,061 | 9,785,390 | 6.21 | 19 | |||||||||||||
| US Equity Concentrated | 13,131,308 | 28,645,057 | 6.29 | 22 | |||||||||||||
| US Equity Focus | 408,616 | 520,100 | 5.76 | 5 | |||||||||||||
| * | For days borrowings were outstanding. |
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Management believes that the fair value of the liabilities under the Agreement is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with the Applicable Rate. A Portfolio’s outstanding balance under the Agreement, if any, would be categorized as Level 2.
7. Investment Risks
Not all risks described below apply to all Portfolios, or may not apply to the same degree for one or more Portfolios compared to one or more other Portfolios. In addition, not all risks applicable to an investment in a Portfolio are described below. Please see the current summary prospectus for the relevant Portfolio(s) or a current Portfolio prospectus for further information regarding a Portfolio’s investment strategy and related risks.
(a) Market Risk—Portfolio may incur losses due to declines in one or more markets in which it invests. These declines may be the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s). To the extent that such developments impact specific industries, market sectors, countries or geographic regions, a Portfolio’s investments in such industries, market sectors, countries and/or geographic regions can be expected to be particularly affected, especially if such investments are a significant portion of its investment portfolio. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect a Portfolio. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers worldwide. As a result, local, regional or global events such as war or military conflict, acts of terrorism, the spread of infectious illness or other public health issues, social unrest, supply chain disruptions, market manipulations, government defaults, government shutdowns, the imposition of sanctions and other similar measures, recessions or other events could have a significant negative impact on global economic and market conditions. Additionally, general market conditions may impact the value of a Portfolio’s securities, including changes in
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interest rates, currency rates or monetary policies. It is not known how long the effects of such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may be expected to impact a Portfolio and its investments.
(b) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity. Non-US securities may be subject to economic sanctions or other similar governmental actions or developments, which could, among other things, effectively restrict or eliminate the Portfolio’s ability to purchase or sell certain foreign securities. To the extent the Portfolio holds securities subject to such actions, the securities may become difficult to value and/or less liquid (or illiquid). In some cases, the securities may become worthless. 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.
(c) Emerging Market Risk—Emerging market countries generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile and less liquid than more developed markets. These market conditions may continue or worsen. Investments in these countries may be subject to political, economic, legal, market and currency risks. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.
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(d) Foreign Currency Risk—Investments denominated in currencies other than US dollars may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. A Portfolio’s investments denominated in such currencies (particularly currencies of emerging markets countries), as well as any investments in currencies themselves, could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of currencies. Irrespective of any foreign currency exposure hedging, a Portfolio may experience a decline in the value of its portfolio securities, in US dollar terms, due solely to fluctuations in currency exchange rates.
(e) Forward Currency Contracts and Currency Hedging Risk—Forward currency contracts, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since forward currency contracts, like most derivative instruments, have a leverage component that provides investment exposure in excess of the amount invested. Forward currency contracts are subject to the risks of the creditworthiness of and default by the counterparty and consequently may lose all of a portion of their value due solely to the creditworthiness of or default by the counterparty. Forward currency contracts also may be illiquid. Changes in liquidity may result in significant, rapid and unpredictable changes in the value of such contracts. Forward currency contracts are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related currencies. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Forward currency contracts incur costs, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of forward currency contracts, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to accurately predict movements in currency exchange rates and, for hedging transactions, there may be imperfect correlations between movements in exchange rates that could cause a Portfolio to incur significant losses. Use of forward currency contracts, even if entered into for hedging
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purposes, may cause a Portfolio to experience losses greater than if the Portfolio had not engaged in such transactions.
(f) Country Risk—Implementation of certain Portfolios’ investment strategies may, during certain periods, result in the investment of a significant portion of such Portfolios’ assets in a particular country, such as China or Japan, and a Portfolio would be expected to be affected by political, regulatory, market, economic and social developments affecting that country.
Recent developments in relations between the United States and China have heightened concerns of increased tariffs and restrictions on trade between the two countries. It is unclear whether further tariffs and sanctions may be imposed or other escalating actions may be taken in the future, which could negatively affect the Portfolio. Other risks associated with investments in China include exposure to currency fluctuations, less liquidity, expropriation, confiscatory taxation, nationalization, exchange control regulations (including currency blockage), trading halts, limitations on repatriation and differing legal standards. Certain Portfolios may invest in eligible renminbi-denominated class A shares of equity securities that are listed and traded on certain Chinese stock exchanges (“China A-Shares”) through Hong Kong Stock Connect Program (“Stock Connect”). While Stock Connect is not subject to individual investment quotas, daily and aggregate investment quotas apply to all Stock Connect participants, which may restrict or preclude a Portfolio’s ability to invest in China A-Shares (although the Portfolio would be permitted to sell China A-Shares regardless of the quota balance). Stock Connect is also subject to trading, clearance, settlement and operational risks.
Certain Portfolios may obtain exposure to companies based or operated in China by investing through legal structures known as variable interest entities (“VIEs”). Instead of directly owning the equity securities of a Chinese company, a VIE enters into service and other contracts with the Chinese company. Although the VIE has no equity ownership of the Chinese company, the contractual arrangements permit the VIE to consolidate the Chinese company
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into its financial statements. VIE investments are subject to the risk that any breach of these contractual arrangements will be subject to Chinese law and jurisdiction, that Chinese law may be interpreted or change in a way that affects the enforceability of the VIE’s arrangements, or that contracts between the Chinese company and the VIE may otherwise not be enforceable under Chinese law. VIE structures also could face delisting or other ramifications for failure to meet the requirements of the SEC, the Public Company Accounting Oversight Board or other United States regulators. If these risks materialize, the value of investments in VIEs could be adversely affected and the Portfolios could incur significant losses with no recourse available.
Over the last few decades, Japan’s economic growth rate had remained relatively low compared to that of its Asian neighbors and other major developed economies mainly due to deflation. Japan has few natural resources and limited land area and is reliant on imports for its commodity needs. Fluctuations or shortages in relevant commodity markets could have a negative impact on Japan’s economy. The Japanese economy also can be adversely affected by trade tariffs, other protectionist measures, competition from emerging economies, and the economic conditions of its trading partners. Japan has a growing economic relationship with China and other Southeast Asian countries, and economic, political or social instability in those countries could have an adverse effect on Japan’s economy. The Japanese yen has fluctuated widely at times, and any increase in the yen’s value may cause a decline in Japan’s exports.
(g) Sector Risk—Implementation of certain Portfolios’ investment strategies may, during certain periods, result in the investment of a significant portion of such Portfolios’ assets in a particular market sector, and a Portfolio would be expected to be affected by developments in that sector.
(h) Franchise Companies Risk—Changes in the worldwide economy, consumer spending, competition, demographics and consumer preferences, government regulation and economic conditions may adversely affect franchise companies individually
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or across an industry and may negatively impact a Portfolio to a greater extent than if the Portfolio’s assets were invested more broadly in a number of types of companies.
(i) Infrastructure Companies Risk—Securities and instruments of infrastructure companies, which consist of utilities, pipelines, toll roads, airports, railroads, ports, telecommunications and other infrastructure companies, are more susceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Infrastructure companies also may be affected by or subject to, among other factors, regulation by various government authorities, including rate regulation and service interruption due to environmental, operational or other mishaps.
(j) Sustainable Investing Risk—A Portfolio’s performance is dependent upon, among other things, the success of its investment strategy as implemented by the Investment Manager (i.e., the performance of the investments purchased pursuant to the investment strategy). A Portfolio’s investment strategy which focuses on investing in companies that satisfy the criteria for being considered a Sustainable Company (as described in the prospectus), which may cause the Investment Manager to forgo investments for the Portfolio that the Investment Manager otherwise believes may be attractive but that are not considered to be Sustainable Companies.
(k) Other Equity Securities Risk—Investments in rights and warrants involve certain risks, including the possible lack of a liquid market for resale, price fluctuations and the failure of the price of the underlying security to reach a level at which the right or warrant can be prudently exercised, in which case the right or warrant may expire without being exercised and result in a loss of a Portfolio’s entire investment.
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(l) Depositary Receipts Risk—ADRs and similar depositary receipts typically will be subject to certain of the risks associated with direct investments in the securities of non-US companies, because their values depend on the performance of the underlying non-US securities. However, currency fluctuations will impact investments in depositary receipts differently than direct investments in non-US dollar-denominated non-US securities, because a depositary receipt will not appreciate in value solely as a result of appreciation in the currency in which the underlying non-US dollar security is denominated.
(m) REIT Risk—REITs are subject to similar risks as an investment in a realty-related company. Consequently, investments in REITs could lead to investment results that may be significantly different from investments in the broader securities markets. The risks related to investments in realty-related companies include, but are not limited to: adverse changes in general economic and local market conditions; adverse developments in employment; changes in supply or demand for similar or competing properties; unfavorable changes in applicable taxes, governmental regulations and interest rates; operating or development expenses; and lack of available financing. Due to certain special considerations that apply to REITs, investments in REITs may carry additional risks not necessarily present in investments in other securities. REIT securities (including those trading on national exchanges) typically have trading volumes that are less than those of securities of other types of companies, which may affect a Portfolio’s ability to trade or liquidate those securities. An investment in a REIT may be adversely affected if the REIT fails to comply with applicable laws and regulations, including failing to qualify as a REIT under the Code. Failure to qualify with any of these requirements could jeopardize a company’s status as a REIT. A Portfolio generally will have no control over the operations and policies of a REIT, including qualification as a REIT.
(n) ETF Risk—Shares of exchange-traded funds (“ETFs”) may trade at prices that vary from their net asset values, sometimes significantly. The shares of ETFs may trade at prices at, below or above their net asset value. In addition, the performance of an ETF pursuing a passive index-based strategy may diverge from the performance of the index. A Portfolio’s investments in ETFs are subject to the risks of the ETF’s investments, as well as to the
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general risks of investing in ETFs. A Portfolio investing in ETFs will bear not only the Portfolio’s management fees and operating expenses, but also the Portfolio’s proportional share of the management fees and operating expenses of the ETFs in which the Portfolio invests. Although Section 12 of the 1940 Act limits the amount of a Portfolio’s assets that may be invested in one or more ETFs. Rule 12d1-4 under the 1940 Act allows a Portfolio to acquire the securities of another investment company, including ETFs, in excess of the limitations imposed by Section 12, subject to certain limitations and conditions.
(o) Non-Diversification Risk—The net asset value of a Portfolio that is classified as “non-diversified” may be more vulnerable to changes in the market value of a single issuer or group of issuers and may be relatively more susceptible to adverse effects from any single corporate, industry, economic, market, political or regulatory occurrence than if the Portfolio’s investments consisted of securities issued by a larger number of issuers.
(p) Quantitative Model Risk—The success of certain Portfolios’ investment strategy depends largely upon the effectiveness of the Investment Manager’s quantitative model. A quantitative model, such as the risk and other models used by the Investment Manager for certain Portfolios requires adherence to a systematic, disciplined process. The Investment Manager’s ability to monitor and, if necessary, adjust its quantitative model could be adversely affected by various factors including incorrect or outdated market and other data inputs. Factors that affect a security’s value can change over time, and these changes may not be reflected in the quantitative model. In addition, factors used in quantitative analysis and the weight placed on those factors may not be predictive of a security’s value.
(q) Cybersecurity Risk—The Portfolios and their service providers are susceptible to operational and information security and related risks of cybersecurity incidents. Cybersecurity attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through “hacking” or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data or causing operational disruption.
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Cybersecurity incidents affecting the Investment Manager, transfer agent or custodian or other service providers such as financial intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, including by impediments to a Portfolio’s investment trading; the inability of Portfolio shareholders to purchase and redeem Portfolio shares; interference with a Portfolio’s ability to calculate its NAV; violations of applicable privacy, data security or other laws; regulatory fines and penalties; reputational damage; reimbursement or other compensation or remediation costs; legal fees; or additional compliance costs. Similar adverse consequences would increase dividend income, resulting from cybersecurity incidents affecting issuers of securities in which a Portfolio invests; counterparties with which a Portfolio engages in transactions; governmental and other regulatory authorities, exchange and other financial market operators; and banks, brokers, dealers, insurance companies and other financial institutions and other parties. There are inherent limitations in any cybersecurity risk management systems or business continuity plans, including the possibility that certain risks have not been identified.
8. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnification provisions. A Portfolio’s maximum exposure under these arrangements is unknown. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
9. Fair Value Measurements
Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would
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use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below:
| • | Level 1 – unadjusted quoted prices in active markets for identical assets and liabilities |
| • | Level 2 – other significant observable inputs (including unadjusted quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of assets and liabilities) |
Changes in valuation methodology or input may result in transfers into or out of the current assigned level within the hierarchy. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.
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The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2023:
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| Developing Markets Equity Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Brazil | $ | 2,722,617 | $ | 4,623,208 | $ | — | $ | 7,345,825 | |||||||||
| China | 5,053,684 | 17,272,902 | — | 22,326,586 | |||||||||||||
| Hong Kong | — | 1,172,168 | — | 1,172,168 | |||||||||||||
| Hungary | — | 2,447,377 | — | 2,447,377 | |||||||||||||
| India | 5,902,974 | 5,721,060 | — | 11,624,034 | |||||||||||||
| Indonesia | — | 4,089,516 | — | 4,089,516 | |||||||||||||
| Macau | — | 1,136,932 | — | 1,136,932 | |||||||||||||
| Mexico | 4,216,868 | — | — | 4,216,868 | |||||||||||||
| Peru | 1,022,672 | — | — | 1,022,672 | |||||||||||||
| Philippines | — | 2,847,829 | — | 2,847,829 | |||||||||||||
| Poland | — | 1,478,275 | — | 1,478,275 | |||||||||||||
| South Africa | — | 4,374,780 | — | 4,374,780 | |||||||||||||
| South Korea | — | 8,738,517 | — | 8,738,517 | |||||||||||||
| Taiwan | — | 15,883,846 | — | 15,883,846 | |||||||||||||
| United States | 2,350,132 | — | — | 2,350,132 | |||||||||||||
| Short-Term Investments | 1,641,593 | — | — | 1,641,593 | |||||||||||||
| Total | $ | 22,910,540 | $ | 69,786,410 | $ | — | $ | 92,696,950 | |||||||||
Annual Report 305
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| Emerging Markets Core Equity Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Brazil | $ | 3,361,348 | $ | 4,466,518 | $ | — | $ | 7,827,866 | |||||||||
| Canada | 1,070,023 | — | — | 1,070,023 | |||||||||||||
| China | 8,901,728 | 15,521,483 | — | 24,423,211 | |||||||||||||
| France | 1,698,495 | — | — | 1,698,495 | |||||||||||||
| Ghana | 1,008,218 | — | — | 1,008,218 | |||||||||||||
| Greece | — | 2,483,267 | — | 2,483,267 | |||||||||||||
| Hong Kong | — | 1,565,110 | — | 1,565,110 | |||||||||||||
| India | 5,334,956 | 10,514,482 | — | 15,849,438 | |||||||||||||
| Indonesia | 1,098,561 | 4,025,684 | — | 5,124,245 | |||||||||||||
| Macau | — | 933,404 | — | 933,404 | |||||||||||||
| Mexico | 6,247,149 | — | — | 6,247,149 | |||||||||||||
| Peru | 868,994 | — | — | 868,994 | |||||||||||||
| Philippines | — | 2,450,245 | — | 2,450,245 | |||||||||||||
| Russia | — | — | — | — | |||||||||||||
| Saudi Arabia | — | 2,583,097 | — | 2,583,097 | |||||||||||||
| South Africa | — | 5,297,733 | — | 5,297,733 | |||||||||||||
| South Korea | — | 12,654,385 | — | 12,654,385 | |||||||||||||
| Taiwan | 9,167,080 | 9,310,157 | — | 18,477,237 | |||||||||||||
| Thailand | — | 2,189,366 | — | 2,189,366 | |||||||||||||
| United Arab Emirates | — | 1,736,210 | — | 1,736,210 | |||||||||||||
| United Kingdom | 1,356,616 | 287,958 | — | 1,644,574 | |||||||||||||
| United States | 1,243,427 | — | — | 1,243,427 | |||||||||||||
| Short-Term Investments | 1,258,062 | — | — | 1,258,062 | |||||||||||||
| Total | $ | 42,614,657 | $ | 76,019,099 | $ | — | $ | 118,633,756 | |||||||||
306 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| Emerging Markets Equity Advantage Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Brazil | $ | — | $ | 3,870,983 | $ | — | $ | 3,870,983 | |||||||||
| Chile | 486,817 | — | — | 486,817 | |||||||||||||
| China | 6,578,022 | 29,322,586 | — | 35,900,608 | |||||||||||||
| Colombia | 269,361 | — | — | 269,361 | |||||||||||||
| Egypt | 128,241 | — | — | 128,241 | |||||||||||||
| Greece | 203,591 | 969,919 | — | 1,173,510 | |||||||||||||
| Hungary | — | 598,050 | — | 598,050 | |||||||||||||
| India | 6,273,406 | 15,317,859 | — | 21,591,265 | |||||||||||||
| Indonesia | 172,772 | 3,307,827 | — | 3,480,599 | |||||||||||||
| Luxembourg | — | 242,749 | — | 242,749 | |||||||||||||
| Malaysia | — | 1,169,683 | — | 1,169,683 | |||||||||||||
| Mexico | 4,127,325 | — | — | 4,127,325 | |||||||||||||
| Philippines | — | 1,141,151 | — | 1,141,151 | |||||||||||||
| Poland | — | 1,638,201 | — | 1,638,201 | |||||||||||||
| Qatar | — | 216,462 | — | 216,462 | |||||||||||||
| Romania | — | 223,158 | — | 223,158 | |||||||||||||
| Russia | — | — | — | — | |||||||||||||
| Saudi Arabia | — | 4,675,147 | — | 4,675,147 | |||||||||||||
| South Africa | 476,674 | 2,164,613 | — | 2,641,287 | |||||||||||||
| South Korea | 3,508,316 | 14,158,196 | — | 17,666,512 | |||||||||||||
| Taiwan | — | 21,648,921 | — | 21,648,921 | |||||||||||||
| Thailand | 410,364 | 2,815,357 | — | 3,225,721 | |||||||||||||
| Turkey | — | 1,357,068 | — | 1,357,068 | |||||||||||||
| United Arab Emirates | — | 1,512,422 | — | 1,512,422 | |||||||||||||
| Preferred Stocks* | |||||||||||||||||
| Brazil | — | 1,831,530 | — | 1,831,530 | |||||||||||||
| Short-Term Investments | 1,979,591 | — | — | 1,979,591 | |||||||||||||
| Total | $ | 24,614,480 | $ | 108,181,882 | $ | — | $ | 132,796,362 | |||||||||
Annual Report 307
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| Emerging Markets Equity Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Brazil | $ | 99,864,713 | $ | 223,536,199 | $ | — | $ | 323,400,912 | |||||||||
| Chile | 25,076,993 | — | — | 25,076,993 | |||||||||||||
| China | 39,589,966 | 602,603,595 | — | 642,193,561 | |||||||||||||
| Egypt | — | 18,629,376 | — | 18,629,376 | |||||||||||||
| Greece | — | 44,117,596 | — | 44,117,596 | |||||||||||||
| Hong Kong | — | 19,444,089 | — | 19,444,089 | |||||||||||||
| Hungary | — | 90,422,234 | — | 90,422,234 | |||||||||||||
| India | 27,745,952 | 139,966,011 | — | 167,711,963 | |||||||||||||
| Indonesia | 33,470,045 | 96,283,211 | — | 129,753,256 | |||||||||||||
| Mexico | 140,558,698 | — | — | 140,558,698 | |||||||||||||
| Portugal | — | 65,421,093 | — | 65,421,093 | |||||||||||||
| Russia | — | — | 18 | 18 | |||||||||||||
| South Africa | — | 222,736,177 | — | 222,736,177 | |||||||||||||
| South Korea | — | 300,298,042 | — | 300,298,042 | |||||||||||||
| Taiwan | — | 336,638,566 | — | 336,638,566 | |||||||||||||
| Thailand | — | 50,744,024 | — | 50,744,024 | |||||||||||||
| United Kingdom | — | 35,180,451 | — | 35,180,451 | |||||||||||||
| Short-Term Investments | 101,061,146 | — | — | 101,061,146 | |||||||||||||
| Total | $ | 467,367,513 | $ | 2,246,020,664 | $ | 18 | $ | 2,713,388,195 | |||||||||
308 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| Equity Franchise Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Germany | $ | — | $ | 9,159,374 | $ | — | $ | 9,159,374 | |||||||||
| Ireland | — | 4,264,943 | — | 4,264,943 | |||||||||||||
| Italy | — | 8,079,209 | — | 8,079,209 | |||||||||||||
| Luxembourg | — | 3,656,399 | — | 3,656,399 | |||||||||||||
| United Kingdom | — | 15,138,953 | — | 15,138,953 | |||||||||||||
| United States | 69,196,365 | 3,577,507 | — | 72,773,872 | |||||||||||||
| Preferred Stocks* | |||||||||||||||||
| Germany | — | 3,666,004 | — | 3,666,004 | |||||||||||||
| Short-Term Investments | 1,760,371 | — | — | 1,760,371 | |||||||||||||
| Total | $ | 70,956,736 | $ | 47,542,389 | $ | — | $ | 118,499,125 | |||||||||
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| Global Equity Select Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Australia | $ | — | $ | 838,448 | $ | — | $ | 838,448 | |||||||||
| Canada | 4,586,883 | — | — | 4,586,883 | |||||||||||||
| China | 1,525,305 | 828,267 | — | 2,353,572 | |||||||||||||
| Denmark | — | 716,567 | — | 716,567 | |||||||||||||
| Finland | — | 887,402 | — | 887,402 | |||||||||||||
| France | — | 4,239,043 | — | 4,239,043 | |||||||||||||
| Germany | — | 752,025 | — | 752,025 | |||||||||||||
| Hong Kong | — | 866,656 | — | 866,656 | |||||||||||||
| India | 1,301,733 | — | — | 1,301,733 | |||||||||||||
| Japan | — | 3,082,284 | — | 3,082,284 | |||||||||||||
| Netherlands | — | 3,649,685 | — | 3,649,685 | |||||||||||||
| Spain | — | 1,131,454 | — | 1,131,454 | |||||||||||||
| Sweden | — | 1,935,662 | — | 1,935,662 | |||||||||||||
| Switzerland | — | 4,368,880 | — | 4,368,880 | |||||||||||||
| Taiwan | 1,827,488 | — | — | 1,827,488 | |||||||||||||
| United Kingdom | 1,276,136 | 5,011,941 | — | 6,288,077 | |||||||||||||
| United States | 57,590,364 | — | — | 57,590,364 | |||||||||||||
| Short-Term Investments | 1,417,398 | — | — | 1,417,398 | |||||||||||||
| Total | $ | 69,525,307 | $ | 28,308,314 | $ | — | $ | 97,833,621 | |||||||||
Annual Report 309
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| Global Listed Infrastructure Portfolio | |||||||||||||||||
| Assets: | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Australia | $ | — | $ | 529,191,060 | $ | — | $ | 529,191,060 | |||||||||
| Canada | 318,021,745 | — | — | 318,021,745 | |||||||||||||
| France | — | 475,427,955 | — | 475,427,955 | |||||||||||||
| Hong Kong | — | 379,678,177 | — | 379,678,177 | |||||||||||||
| Italy | — | 1,232,641,166 | — | 1,232,641,166 | |||||||||||||
| Luxembourg | — | 139,222,404 | — | 139,222,404 | |||||||||||||
| Portugal | — | 74,231,607 | — | 74,231,607 | |||||||||||||
| Spain | 59,025,649 | 182,607,428 | — | 241,633,077 | |||||||||||||
| Switzerland | — | 173,733,408 | — | 173,733,408 | |||||||||||||
| United Kingdom | — | 1,663,405,698 | — | 1,663,405,698 | |||||||||||||
| United States | 2,429,079,167 | 732,926,723 | — | 3,162,005,890 | |||||||||||||
| Short-Term Investments | 279,726,263 | — | — | 279,726,263 | |||||||||||||
| Other Financial Instruments† | |||||||||||||||||
| Forward Currency Contracts | — | 1,234,656 | — | 1,234,656 | |||||||||||||
| Total | $ | 3,085,852,824 | $ | 5,584,300,282 | $ | — | $ | 8,670,153,106 | |||||||||
| Liabilities: | |||||||||||||||||
| Other Financial Instruments† | |||||||||||||||||
| Forward Currency Contracts | $ | — | $ | (29,294,449 | ) | $ | — | $ | (29,294,449 | ) | |||||||
310 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| Global Strategic Equity Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Australia | $ | — | $ | 107,582 | $ | — | $ | 107,582 | |||||||||
| Belgium | — | 117,136 | — | 117,136 | |||||||||||||
| Canada | 449,772 | — | — | 449,772 | |||||||||||||
| China | 156 | 147,337 | — | 147,493 | |||||||||||||
| Denmark | — | 621,139 | — | 621,139 | |||||||||||||
| France | — | 183,196 | — | 183,196 | |||||||||||||
| Germany | — | 414,620 | — | 414,620 | |||||||||||||
| Hong Kong | — | 159,811 | — | 159,811 | |||||||||||||
| India | 146,971 | — | — | 146,971 | |||||||||||||
| Ireland | 110,956 | — | — | 110,956 | |||||||||||||
| Israel | 124,742 | 248,784 | — | 373,526 | |||||||||||||
| Italy | — | 163,299 | — | 163,299 | |||||||||||||
| Japan | — | 929,975 | — | 929,975 | |||||||||||||
| Mexico | 212,914 | — | — | 212,914 | |||||||||||||
| Netherlands | — | 291,736 | — | 291,736 | |||||||||||||
| Portugal | — | 129,909 | — | 129,909 | |||||||||||||
| Switzerland | — | 118,430 | — | 118,430 | |||||||||||||
| Taiwan | — | 307,928 | — | 307,928 | |||||||||||||
| United Kingdom | — | 427,219 | — | 427,219 | |||||||||||||
| United States | 5,393,566 | — | — | 5,393,566 | |||||||||||||
| Short-Term Investments | 108,866 | — | — | 108,866 | |||||||||||||
| Total | $ | 6,547,943 | $ | 4,368,101 | $ | — | $ | 10,916,044 | |||||||||
Annual Report 311
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| International Equity Advantage Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Australia | $ | — | $ | 914,831 | $ | — | $ | 914,831 | |||||||||
| Austria | — | 50,442 | — | 50,442 | |||||||||||||
| Brazil | — | 46,799 | — | 46,799 | |||||||||||||
| Canada | 1,499,345 | — | — | 1,499,345 | |||||||||||||
| Chile | 10,174 | — | — | 10,174 | |||||||||||||
| China | 329,930 | 1,354,636 | — | 1,684,566 | |||||||||||||
| Colombia | 15,016 | — | — | 15,016 | |||||||||||||
| Denmark | — | 804,108 | — | 804,108 | |||||||||||||
| France | — | 1,285,768 | — | 1,285,768 | |||||||||||||
| Germany | — | 776,464 | — | 776,464 | |||||||||||||
| Greece | — | 109,478 | — | 109,478 | |||||||||||||
| Hong Kong | — | 350,410 | — | 350,410 | |||||||||||||
| India | 781,865 | — | — | 781,865 | |||||||||||||
| Indonesia | 130,140 | 13,532 | — | 143,672 | |||||||||||||
| Ireland | 132,654 | — | — | 132,654 | |||||||||||||
| Israel | 49,571 | — | — | 49,571 | |||||||||||||
| Italy | — | 535,168 | — | 535,168 | |||||||||||||
| Japan | 23,187 | 2,767,355 | — | 2,790,542 | |||||||||||||
| Luxembourg | — | 20,880 | — | 20,880 | |||||||||||||
| Mexico | 180,415 | — | — | 180,415 | |||||||||||||
| Netherlands | — | 679,499 | — | 679,499 | |||||||||||||
| Philippines | — | 41,943 | — | 41,943 | |||||||||||||
| Poland | — | 78,974 | — | 78,974 | |||||||||||||
| Portugal | — | 19,578 | — | 19,578 | |||||||||||||
| Saudi Arabia | — | 147,160 | — | 147,160 | |||||||||||||
| Singapore | — | 322,479 | — | 322,479 | |||||||||||||
| South Africa | 45,477 | 39,214 | — | 84,691 | |||||||||||||
| South Korea | — | 778,744 | — | 778,744 | |||||||||||||
| Spain | — | 415,356 | — | 415,356 | |||||||||||||
| Sweden | — | 369,707 | — | 369,707 | |||||||||||||
| Switzerland | — | 403,406 | — | 403,406 | |||||||||||||
| Taiwan | — | 902,634 | — | 902,634 | |||||||||||||
| Thailand | — | 87,565 | — | 87,565 | |||||||||||||
| Turkey | 31,188 | 16,703 | — | 47,891 | |||||||||||||
| United Kingdom | 60,016 | 1,548,095 | — | 1,608,111 | |||||||||||||
| United States | — | 641,853 | — | 641,853 | |||||||||||||
| Preferred Stocks* | |||||||||||||||||
| Brazil | — | 240,794 | — | 240,794 | |||||||||||||
| Germany | — | 333,196 | — | 333,196 | |||||||||||||
| Warrants* | — | — | — | — | |||||||||||||
| Short-Term Investments | 8,620 | — | — | 8,620 | |||||||||||||
| Total | $ | 3,297,598 | $ | 16,096,771 | $ | — | $ | 19,394,369 | |||||||||
312 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| International Equity Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Belgium | $ | — | $ | 9,675,959 | $ | — | $ | 9,675,959 | |||||||||
| Canada | 32,017,474 | — | — | 32,017,474 | |||||||||||||
| China | 7,503,216 | 36,033,935 | — | 43,537,151 | |||||||||||||
| Denmark | — | 9,694,894 | — | 9,694,894 | |||||||||||||
| Finland | — | 23,706,376 | — | 23,706,376 | |||||||||||||
| France | — | 142,935,396 | — | 142,935,396 | |||||||||||||
| Germany | — | 123,074,389 | — | 123,074,389 | |||||||||||||
| Greece | — | 10,006,115 | — | 10,006,115 | |||||||||||||
| Hong Kong | — | 11,932,011 | — | 11,932,011 | |||||||||||||
| Ireland | 22,440,487 | — | — | 22,440,487 | |||||||||||||
| Israel | 3,440,008 | — | — | 3,440,008 | |||||||||||||
| Italy | — | 9,629,503 | — | 9,629,503 | |||||||||||||
| Japan | — | 196,747,641 | — | 196,747,641 | |||||||||||||
| Mexico | 13,316,546 | — | — | 13,316,546 | |||||||||||||
| Netherlands | — | 45,418,981 | — | 45,418,981 | |||||||||||||
| Singapore | — | 12,410,548 | — | 12,410,548 | |||||||||||||
| South Korea | — | 15,890,176 | — | 15,890,176 | |||||||||||||
| Spain | — | 15,578,041 | — | 15,578,041 | |||||||||||||
| Sweden | — | 19,265,429 | — | 19,265,429 | |||||||||||||
| Switzerland | — | 28,094,573 | — | 28,094,573 | |||||||||||||
| Taiwan | 16,973,944 | — | — | 16,973,944 | |||||||||||||
| United Kingdom | — | 183,130,368 | — | 183,130,368 | |||||||||||||
| United States | 41,571,650 | 41,552,491 | — | 83,124,141 | |||||||||||||
| Preferred Stocks* | |||||||||||||||||
| Brazil | — | 14,226,918 | — | 14,226,918 | |||||||||||||
| Germany | — | 14,328,939 | — | 14,328,939 | |||||||||||||
| Short-Term Investments | 9,310,442 | — | — | 9,310,442 | |||||||||||||
| Total | $ | 146,573,767 | $ | 963,332,683 | $ | — | $ | 1,109,906,450 | |||||||||
Annual Report 313
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| International Equity Select Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Belgium | $ | — | $ | 534,522 | $ | — | $ | 534,522 | |||||||||
| Canada | 747,989 | — | — | 747,989 | |||||||||||||
| China | 303,609 | 3,531,437 | — | 3,835,046 | |||||||||||||
| Denmark | — | 2,085,468 | — | 2,085,468 | |||||||||||||
| Finland | — | 669,052 | — | 669,052 | |||||||||||||
| France | — | 6,855,858 | — | 6,855,858 | |||||||||||||
| Germany | — | 3,613,937 | — | 3,613,937 | |||||||||||||
| Hong Kong | — | 1,042,249 | — | 1,042,249 | |||||||||||||
| India | 1,126,416 | — | — | 1,126,416 | |||||||||||||
| Indonesia | 565,999 | 836,597 | — | 1,402,596 | |||||||||||||
| Ireland | 1,451,490 | — | — | 1,451,490 | |||||||||||||
| Japan | — | 6,966,860 | — | 6,966,860 | |||||||||||||
| Mexico | 1,091,070 | — | — | 1,091,070 | |||||||||||||
| Netherlands | — | 3,523,859 | — | 3,523,859 | |||||||||||||
| Singapore | — | 545,718 | — | 545,718 | |||||||||||||
| Switzerland | — | 2,003,497 | — | 2,003,497 | |||||||||||||
| Taiwan | — | 1,828,321 | — | 1,828,321 | |||||||||||||
| United Kingdom | — | 7,110,318 | — | 7,110,318 | |||||||||||||
| United States | 2,315,421 | 1,592,117 | — | 3,907,538 | |||||||||||||
| Preferred Stocks* | |||||||||||||||||
| Brazil | — | 740,551 | — | 740,551 | |||||||||||||
| Germany | — | 495,380 | — | 495,380 | |||||||||||||
| Short-Term Investments | 886,429 | — | — | 886,429 | |||||||||||||
| Total | $ | 8,488,423 | $ | 43,975,741 | $ | — | $ | 52,464,164 | |||||||||
314 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| Lazard International Quality Growth Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Australia | $ | — | $ | 4,067,915 | $ | — | $ | 4,067,915 | |||||||||
| Canada | 18,727,070 | — | — | 18,727,070 | |||||||||||||
| China | — | 4,733,929 | — | 4,733,929 | |||||||||||||
| Denmark | — | 8,699,421 | — | 8,699,421 | |||||||||||||
| France | — | 19,815,264 | — | 19,815,264 | |||||||||||||
| Germany | — | 11,909,930 | — | 11,909,930 | |||||||||||||
| Hong Kong | — | 3,967,493 | — | 3,967,493 | |||||||||||||
| India | 8,055,415 | — | — | 8,055,415 | |||||||||||||
| Israel | 6,283,947 | — | — | 6,283,947 | |||||||||||||
| Japan | — | 27,668,830 | — | 27,668,830 | |||||||||||||
| Netherlands | — | 22,599,182 | — | 22,599,182 | |||||||||||||
| Norway | — | 4,993,460 | — | 4,993,460 | |||||||||||||
| South Africa | — | 7,009,733 | — | 7,009,733 | |||||||||||||
| Spain | — | 6,814,848 | — | 6,814,848 | |||||||||||||
| Sweden | — | 11,822,248 | — | 11,822,248 | |||||||||||||
| Switzerland | — | 9,546,455 | — | 9,546,455 | |||||||||||||
| Taiwan | 8,635,120 | 2,778,887 | — | 11,414,007 | |||||||||||||
| United Kingdom | — | 32,371,901 | — | 32,371,901 | |||||||||||||
| United States | 21,437,788 | 5,756,228 | — | 27,194,016 | |||||||||||||
| Preferred Stocks* | |||||||||||||||||
| Germany | — | 3,010,690 | — | 3,010,690 | |||||||||||||
| Short-Term Investments | 6,779,522 | — | — | 6,779,522 | |||||||||||||
| Total | $ | 69,918,862 | $ | 187,566,414 | $ | — | $ | 257,485,276 | |||||||||
Annual Report 315
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| International Small Cap Equity Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Australia | $ | — | $ | 732,262 | $ | — | $ | 732,262 | |||||||||
| Austria | — | 294,789 | — | 294,789 | |||||||||||||
| Belgium | — | 315,375 | — | 315,375 | |||||||||||||
| Canada | 624,493 | — | — | 624,493 | |||||||||||||
| Denmark | — | 65,974 | — | 65,974 | |||||||||||||
| Finland | — | 149,635 | — | 149,635 | |||||||||||||
| France | — | 417,936 | — | 417,936 | |||||||||||||
| Germany | — | 1,014,203 | — | 1,014,203 | |||||||||||||
| Greece | — | 219,973 | — | 219,973 | |||||||||||||
| Israel | — | 84,983 | — | 84,983 | |||||||||||||
| Italy | — | 874,997 | — | 874,997 | |||||||||||||
| Japan | — | 3,403,041 | — | 3,403,041 | |||||||||||||
| Jersey | — | 219,975 | — | 219,975 | |||||||||||||
| Mexico | 147,402 | — | — | 147,402 | |||||||||||||
| Netherlands | — | 633,710 | — | 633,710 | |||||||||||||
| Norway | — | 89,314 | — | 89,314 | |||||||||||||
| Portugal | — | 87,113 | — | 87,113 | |||||||||||||
| Spain | — | 139,360 | — | 139,360 | |||||||||||||
| Sweden | — | 121,844 | — | 121,844 | |||||||||||||
| Switzerland | — | 277,259 | — | 277,259 | |||||||||||||
| United Kingdom | — | 1,818,889 | — | 1,818,889 | |||||||||||||
| United States | 107,000 | — | — | 107,000 | |||||||||||||
| Short-Term Investments | 79,798 | — | — | 79,798 | |||||||||||||
| Total | $ | 958,693 | $ | 10,960,632 | $ | — | $ | 11,919,325 | |||||||||
316 Annual Report
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| International Strategic Equity Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Belgium | $ | — | $ | 44,185,440 | $ | — | $ | 44,185,440 | |||||||||
| Canada | 198,900,823 | — | — | 198,900,823 | |||||||||||||
| China | 35,148,460 | 18,958,920 | — | 54,107,380 | |||||||||||||
| Denmark | — | 416,555,814 | — | 416,555,814 | |||||||||||||
| Finland | — | 76,982,460 | — | 76,982,460 | |||||||||||||
| France | — | 335,043,818 | — | 335,043,818 | |||||||||||||
| Germany | — | 376,829,768 | — | 376,829,768 | |||||||||||||
| Hong Kong | — | 57,535,602 | — | 57,535,602 | |||||||||||||
| India | — | 51,974,829 | — | 51,974,829 | |||||||||||||
| Ireland | 104,530,769 | — | — | 104,530,769 | |||||||||||||
| Israel | 11,103,908 | 89,851,662 | — | 100,955,570 | |||||||||||||
| Italy | — | 53,331,784 | — | 53,331,784 | |||||||||||||
| Japan | — | 595,717,509 | — | 595,717,509 | |||||||||||||
| Mexico | 92,739,940 | — | — | 92,739,940 | |||||||||||||
| Netherlands | — | 239,449,053 | — | 239,449,053 | |||||||||||||
| Portugal | — | 67,624,216 | — | 67,624,216 | |||||||||||||
| Singapore | — | 64,685,324 | — | 64,685,324 | |||||||||||||
| Sweden | — | 83,697,307 | — | 83,697,307 | |||||||||||||
| Switzerland | — | 89,685,768 | — | 89,685,768 | |||||||||||||
| Taiwan | — | 96,477,607 | — | 96,477,607 | |||||||||||||
| United Kingdom | — | 625,303,466 | — | 625,303,466 | |||||||||||||
| United States | 384,588,023 | 62,904,635 | — | 447,492,658 | |||||||||||||
| Short-Term Investments | 64,496,351 | — | — | 64,496,351 | |||||||||||||
| Total | $ | 891,508,274 | $ | 3,446,794,982 | $ | — | $ | 4,338,303,256 | |||||||||
Annual Report 317
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | |||||||||||||
| Managed Equity Volatility Portfolio | |||||||||||||||||
| Common Stocks* | |||||||||||||||||
| Australia | $ | — | $ | 392,403 | $ | — | $ | 392,403 | |||||||||
| Austria | — | 67,869 | — | 67,869 | |||||||||||||
| Bermuda | 45,668 | — | — | 45,668 | |||||||||||||
| Canada | 741,064 | — | — | 741,064 | |||||||||||||
| China | — | 87,281 | — | 87,281 | |||||||||||||
| Denmark | — | 178,942 | — | 178,942 | |||||||||||||
| France | — | 275,729 | — | 275,729 | |||||||||||||
| Germany | — | 66,524 | — | 66,524 | |||||||||||||
| Hong Kong | — | 187,224 | — | 187,224 | |||||||||||||
| Israel | — | 44,679 | — | 44,679 | |||||||||||||
| Italy | — | 87,596 | — | 87,596 | |||||||||||||
| Japan | — | 2,940,034 | — | 2,940,034 | |||||||||||||
| Netherlands | — | 82,916 | — | 82,916 | |||||||||||||
| New Zealand | — | 105,852 | — | 105,852 | |||||||||||||
| Norway | — | 49,574 | — | 49,574 | |||||||||||||
| Singapore | — | 136,501 | — | 136,501 | |||||||||||||
| Switzerland | — | 172,103 | — | 172,103 | |||||||||||||
| United Kingdom | — | 623,937 | — | 623,937 | |||||||||||||
| United States | 11,124,087 | 450,192 | — | 11,574,279 | |||||||||||||
| Short-Term Investments | 107,656 | — | — | 107,656 | |||||||||||||
| Warrants* | — | — | — | — | |||||||||||||
| Total | $ | 12,018,475 | $ | 5,949,356 | $ | — | $ | 17,967,831 | |||||||||
| US Equity Concentrated Portfolio | |||||||||||||||||
| Common Stocks* | $ | 195,734,786 | $ | — | $ | — | $ | 195,734,786 | |||||||||
| Short-Term Investments | 8,991,911 | — | — | 8,991,911 | |||||||||||||
| Total | $ | 204,726,697 | $ | — | $ | — | $ | 204,726,697 | |||||||||
| US Equity Focus Portfolio | |||||||||||||||||
| Common Stocks* | $ | 87,425,000 | $ | — | $ | — | $ | 87,425,000 | |||||||||
| Short-Term Investments | 4,475,120 | — | — | 4,475,120 | |||||||||||||
| Total | $ | 91,900,120 | $ | — | $ | — | $ | 91,900,120 | |||||||||
| US Small Cap Equity Select Portfolio | |||||||||||||||||
| Common Stocks* | $ | 38,419,992 | $ | — | $ | — | $ | 38,419,992 | |||||||||
| Total | $ | 38,419,992 | $ | — | $ | — | $ | 38,419,992 | |||||||||
| US Sustainable Equity Portfolio | |||||||||||||||||
| Common Stocks* | $ | 11,472,681 | $ | — | $ | — | $ | 11,472,681 | |||||||||
| Short-Term Investments | 386,412 | — | — | 386,412 | |||||||||||||
| Total | $ | 11,859,093 | $ | — | $ | — | $ | 11,859,093 | |||||||||
| US Systematic Small Cap Equity Portfolio | |||||||||||||||||
| Common Stocks* | $ | 39,687,494 | $ | — | $ | — | $ | 39,687,494 | |||||||||
| Rights | — | — | 1,401 | 1,401 | |||||||||||||
| Short-Term Investments | 423,904 | — | — | 423,904 | |||||||||||||
| Total | $ | 40,111,398 | $ | — | $ | 1,401 | $ | 40,112,799 | |||||||||
318 Annual Report
| * | Please refer to Portfolios of Investments and Notes to Portfolios of Investments for portfolio holdings by country and industry. |
| † | Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation). |
Certain equity securities to which footnote (‡) in the Notes to Portfolios of Investments applies are included in Level 2 and were valued based on reference to similar securities that were trading on active markets.
An investment may be classified as a Level 3 investment if events (e.g., company announcements, market volatility, or natural disasters) occur that are expected to materially affect the value of this investment or if a price is not available through a pricing source in the Funds’ pricing matrix. In this case, the investment will be valued by the Valuation Sub-Committee of the Funds’ Valuation and Liquidity Committee in accordance with procedures approved by the Board, reflecting its fair market value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Sub-Committee include, but are not limited to, valuation techniques such as using theoretical ex-rights price models, applying a change in price from a market proxy to a halted security, or determining the intrinsic value of securities. When determining the price for Fair Valued Investments, the Valuation Sub-Committee seeks to determine the price that each affected Portfolio might reasonably expect to receive or pay from the current sale or purchase of the Fair Valued Investment in an arm’s-length transaction. Any fair value determinations shall be based upon all available information and factors that the Valuation Sub-Committee deems relevant and consistent with the principles of fair value measurements.
10. Derivative Instruments
The Global Listed Infrastructure Portfolio uses forward currency contracts primarily for hedging purposes.
During the year ended December 31, 2023, the approximate average monthly notional exposure for derivative instruments was as follows:
| Forward currency contracts: | ||||
| Average foreign currency purchased | $ | 188,800,000 | # | |
| Average foreign currency sold | $ | 5,814,000,000 | ||
| # | Represents average monthly notional exposure for the eleven months the derivative instrument was open during the period. |
Annual Report 319
The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2023:
| Assets – Derivative Financial Instruments | Total | |||||
| Forward currency contracts | Unrealized appreciation on forward currency contracts | $ | 1,234,656 | |||
| Liabilities – Derivative Financial Instruments | ||||||
| Forward currency contracts | Unrealized depreciation on forward currency contracts | $ | 29,294,449 | |||
The effect of derivative instruments on the Statement of Operations for the year ended December 31, 2023 was:
| Net Realized Gain (Loss) from: | Total | |||
| Forward currency contracts | $ | (76,368,195 | ) | |
| Net Change in Unrealized Appreciation (Depreciation) on: | Total | |||
| Forward currency contracts | $ | (43,021,873 | ) | |
320 Annual Report
None of the other presented portfolios traded in derivative instruments during the year ended December 31, 2023.
As of December 31, 2023, the Global Listed Infrastructure Portfolio held derivative instruments that are eligible for offset in its Statement of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through a single payment in the event of default on, or termination of, any one contract.
The required information for the affected Portfolio is presented in the below table, as of December 31, 2023:
| Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | ||||||||||||
| Forward Currency Contracts | $ | 1,234,656 | $ | — | $ | 1,234,656 | |||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||||
| BNP Paribas SA | $ | 19,252 | $ | (19,252 | ) | $ | — | $ | — | |||||||||||
| Canadian Imperial Bank of Commerce | 94,749 | (94,749 | ) | — | — | |||||||||||||||
| HSBC Bank USA N.A. | 413,611 | (413,611 | ) | — | — | |||||||||||||||
| Morgan Stanley & Co. | 135,907 | (135,907 | ) | — | — | |||||||||||||||
| Royal Bank of Canada | 423,838 | (423,838 | ) | — | — | |||||||||||||||
| Standard Chartered Bank | 2,801 | (2,801 | ) | — | — | |||||||||||||||
| State Street Bank & Trust Co. | 144,498 | (144,498 | ) | — | — | |||||||||||||||
| Total | $ | 1,234,656 | $ | (1,234,656 | ) | $ | — | $ | — | |||||||||||
Annual Report 321
| 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 | $ | 29,294,449 | $ | — | $ | 29,294,449 | |||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amounts of Derivative Liabilities | ||||||||||||||||
| Bank of New York Mellon Corp. | $ | 2,208,871 | $ | — | $ | — | $ | 2,208,871 | ||||||||||||
| BNP Paribas SA | 3,879,412 | (19,252 | ) | — | 3,860,160 | |||||||||||||||
| Canadian Imperial Bank of Commerce | 2,218,728 | (94,749 | ) | — | 2,123,979 | |||||||||||||||
| Citibank N.A. | 3,526,378 | — | — | 3,526,378 | ||||||||||||||||
| HSBC Bank USA N.A. | 4,790,823 | (413,611 | ) | — | 4,377,212 | |||||||||||||||
| Morgan Stanley & Co. | 1,904,536 | (135,907 | ) | — | 1,768,629 | |||||||||||||||
| Royal Bank of Canada | 2,059,639 | (423,838 | ) | — | 1,635,801 | |||||||||||||||
| Standard Chartered Bank | 2,393,113 | (2,801 | ) | — | 2,390,312 | |||||||||||||||
| State Street Bank & Trust Co. | 6,312,949 | (144,498 | ) | — | 6,168,451 | |||||||||||||||
| Total | $ | 29,294,449 | $ | (1,234,656 | ) | $ | — | $ | 28,059,793 | |||||||||||
11. Reorganization
At a meeting held on February 24, 2023 the Board approved the reorganization of Emerging Markets Strategic Equity Portfolio into the Emerging Markets Core Equity Portfolio in a tax-free reorganization (the “Reorganization”). The Reorganization was completed on June 22, 2023. The Reorganization was effectuated in order to permit the Lazard Emerging Markets Strategic Portfolio shareholders to continue to invest in equity securities of companies that are economically tied to emerging market countries in a larger combined fund that is anticipated to benefit from certain cost and operational efficiencies.
322 Annual Report
The chart below shows a summary of net assets, shares outstanding, net unrealized appreciation/(depreciation), undistributed net investment income and accumulated net realized gains/(losses), before and after the Reorganization.
| Before Reorganization | After Reorganization | |||||||||||||
| Emerging Markets Strategic Equity Portfolio | Emerging Markets Core Equity Portfolio | Emerging Markets Core Equity Portfolio | ||||||||||||
| Net Assets | ||||||||||||||
| Institutional Shares | $ | 42,695,854 | $ | 96,288,737 | $ | 138,984,591 | ||||||||
| Open Shares | 2,423,804 | 1,320,769 | 3,744,573 | |||||||||||
| R6 Shares | — | 174,005 | 174,005 | |||||||||||
| Total | $ | 45,119,658 | $ | 97,783,511 | $ | 142,903,169 | ||||||||
| Shares Outstanding* | ||||||||||||||
| Institutional Shares | 3,944,969 | 9,842,075 | 14,206,187 | |||||||||||
| Open Shares | 223,363 | 135,458 | 384,043 | |||||||||||
| R6 Shares | — | 17,761 | 17,761 | |||||||||||
| Net unrealized appreciation (depreciation) | (3,194,090 | ) | 15,320,491 | 12,126,401 | ||||||||||
| * | A tax-free exchange of 3,944,969 Institutional Shares and 223,363 Open Shares of the Emerging Markets Strategic Equity Portfolio converted to 4,364,112 Institutional Shares and 248,585 Open Shares, respectively, of the Emerging Markets Core Equity Portfolio on June 22, 2023. |
Assuming the acquisition of Emerging Markets Strategic Equity Portfolio had been completed on January 1, 2023, the beginning of the annual reporting period, Emerging Markets Core Equity Portfolio’s pro forma results of operations for the year ended December 31, 2023 were as follows:
| Net investment income | $ | 2,556,974 | ||
| Net realized gain/loss and change in unrealized gain/(loss) on investments | $ | 11,780,494 | ||
| Net increase/(decrease) in net assets resulting from operations | $ | 14,337,468 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the Reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of Emerging Markets Strategic Equity Portfolio that have been included in Emerging Markets Core Equity Portfolio’s Statement of Operations since June 22, 2023.
Annual Report 323
For financial reporting purposes, assets received and shares issued by Emerging Markets Core Equity Portfolio were recorded at fair value; however, the cost basis of the investments received from Emerging Markets Strategic Equity Portfolio in the amount of $47,710,543, was carried forward to align ongoing reporting of Emerging Markets Core Equity Portfolio’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Emerging Markets Core Equity Portfolio acquired capital loss carryovers of $50,091,502, of which, $10,709,405 are short-term and $39,382,097 are long-term. These losses are not subject to expiration, but they may be subject to future annual limitations.
12. Subsequent Events
Management has evaluated subsequent events potentially affecting the Portfolios through the issuance of the financial statements and has determined that there were no subsequent events that required adjustment or disclosure.
324 Annual Report
The Lazard Funds, Inc.
Report of Independent Registered Public Accounting Firm
To the Board of Directors of The Lazard Funds, Inc. and Shareholders of Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Core Equity Portfolio, Lazard Emerging Markets Equity Advantage Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Equity Franchise Portfolio, Lazard Global Equity Select Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Global Strategic Equity Portfolio, Lazard International Equity Advantage Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Quality Growth Portfolio, Lazard International Small Cap Equity Portfolio, Lazard International Strategic Equity Portfolio, Lazard Managed Equity Volatility Portfolio, Lazard US Equity Concentrated Portfolio, Lazard US Equity Focus Portfolio, Lazard US Small Cap Equity Select Portfolio (formerly known as Lazard US Small-Mid Cap Equity Portfolio), Lazard US Sustainable Equity Portfolio and Lazard US Systematic Small Cap Equity Portfolio (collectively the “Portfolios”):
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of the Portfolios, certain of the funds constituting The Lazard Funds, Inc., including the portfolios of investments, as of December 31, 2023, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended (except for Lazard US Sustainable Equity Portfolio and Lazard US Systematic Small Cap Equity Portfolio, the financial highlights for the periods included in the table below), and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Portfolios as of December 31, 2023, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended (or for the periods listed in the table below), in conformity with accounting principles generally accepted in the United States of America.
Annual Report 325
| Portfolio Name | Financial Highlights |
| Lazard US Sustainable Equity Portfolio | For the years ended December 31, 2023, 2022, 2021, and for the period from June 30, 2020 (commencement of operations) through December 31, 2020 |
| Lazard US Systematic Small Cap Equity Portfolio | For the years ended December 31, 2023, 2022, and for the period from October 29, 2021 (commencement of operations) through December 31, 2021 |
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolios’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of
326 Annual Report
securities owned as of December 31, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
New York, New York
February 26, 2024
We have served as the auditor of one or more of the investment companies in the Lazard Fund Complex since 2004.
Annual Report 327
The Lazard Funds, Inc.
Board of Directors and Officers Information (unaudited)
Name (Year of Birth) Address(1) | Position(s) with the Fund (Since) and Term(2) | Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Independent Directors: | ||||
| Franci J. Blassberg (1953) | Director (August 2014)
| Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present) Cornell Law School, Adjunct Professor (2013 – present) The Buchmann Faculty of Law, Tel Aviv University, Visiting Professor (2019) New York University School of Law, Adjunct Professor (2022 – present) | ||
| Kenneth S. Davidson (1945) | Director (August 1995) | Davidson Capital Management Corporation, an investment manager, President (1978 – present) | ||
| Nancy A. Eckl (1962) | Director (April 2007) | College Retirement Equities Fund (eight accounts), Trustee (2007 – present) TIAA-CREF Funds (68 funds) and TIAA-CREF Life Funds (11 funds), Trustee (2007 – 2023) TIAA Separate Account VA-1, Member of the Management Committee (2007 – present) | ||
| Trevor W. Morrison (1971) | Director (April 2014) | New York University School of Law, Eric M. and Laurie B. Roth Professor of Law (2013 – present, previously Dean from 2013 – 2022) | ||
| Richard Reiss, Jr. (1944) | Director (May 1991) | Georgica Advisors LLC, an investment manager, Chairman (1997 – present) Osprey Technology Acquisition Corp, a special purpose acquisition company, Director (2019 – present) |
328 Annual Report
Name (Year of Birth) Address(1) | Position(s) with the Fund (Since) and Term(2) | Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Robert M. Solmson (1947) | Director (September 2004) | Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, Co-Managing Partner and Managing Director (2008 – present) | ||
| Interested Directors(3): | ||||
| Nathan A. Paul (1973) | Director (October 2017), Chief Executive Officer and President (February 2017) | Vice Chair and Chief Operating Officer (February 2023 – present) Investment Manager, Chief Business Officer (April 2017 – February 2023) and Managing Director (2003 – present) | ||
| Evan L. Russo (1974) | Director (July 2022) | Investment Manager, Chief Executive Officer (June 2022 – present)
Lazard Ltd, Chief Financial Officer (October 2017 – October 2022) and Managing Director (2009 – 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, 2024, 32 active investment portfolios. Each Director serves an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation. |
| (3) | Messrs. Paul and Russo are “interested persons” (as defined in the 1940 Act) of the Fund because of their positions with the Investment Manager (“Interested Directors”). |
The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.lazardassetmanagement.com.
Annual Report 329
Name (Year of Birth) Address(1) | Position(s) with the Fund (Since) and Term(2) | Principal Occupation(s) During the Past Five Years | ||
| Officers(3): | ||||
| Mark R. Anderson (1970) | Vice President and Secretary (February 2017) | Managing Director (since February 2017) and General Counsel (since April 2017) of the Investment Manager (previously Chief Compliance Officer from September 2014 – April 2022) | ||
| Nargis Hilal (1984) | Chief Compliance Officer (July 2020) | Chief Compliance Officer (since April 2022) and Director of the Investment Manager (since January 2021, previously Senior Vice President) | ||
| Christina Kennedy (1990) | Treasurer (April 2022) | Senior Vice President of the Investment Manager (since January 2023, previously Vice President) Senior Fund Accountant, Gates Capital Management Inc. (July 2016 – July 2019) | ||
| Shari L. Soloway (1981) | Assistant Secretary (November 2015) | Head of Legal, North America and Director of the Investment Manager (since January 2020, previously Senior Vice President) | ||
| Jessica A. Falzone (1989) | Assistant Secretary (January 2019) | Senior Vice President and Counsel of the Investment Manager (since January 2023, previously Vice President) | ||
| Cesar A. Trelles (1975) | Assistant Treasurer (December 2004) | Vice President of the Investment Manager (since February 2011) |
| (1) | The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
| (2) | Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex. |
| (3) | In addition to Nathan A. Paul, Chief Executive Officer and President (since February 2017, previously Vice President and Secretary), whose information is included in the Interested Directors section above. |
330 Annual Report
The Lazard Funds, Inc. Tax and Other Information (unaudited)
Tax Information
Year Ended December 31, 2023
The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2023:
Of the dividends paid by the Portfolios, the corresponding percentage shown below is qualified dividend income.
| Portfolio | Percentage | |||
| Developing Markets Equity | 53.79 | % | ||
| Emerging Markets Core Equity | 100.00 | |||
| Emerging Markets Equity Advantage | 57.87 | |||
| Emerging Markets Equity | 74.84 | |||
| Equity Franchise | 39.44 | |||
| Global Equity Select | 100.00 | |||
| Global Listed Infrastructure | 100.00 | |||
| Global Strategic Equity | 100.00 | |||
| International Equity Advantage | 86.41 | |||
| International Equity | 81.95 | |||
| International Equity Select | 100.00 | |||
| International Quality Growth | 100.00 | |||
| International Small Cap Equity | 100.00 | |||
| International Strategic Equity | 100.00 | |||
| Managed Equity Volatility | 100.00 | |||
| US Equity Concentrated | 39.53 | |||
| US Equity Focus | 100.00 | |||
| US Small Cap Equity Select | 100.00 | |||
| US Sustainable Equity | 100.00 | |||
| US Systematic Small Cap Equity | 100.00 | |||
Annual Report 331
Of the dividends paid by the Portfolios, the corresponding percentage represents the amount of each dividend that qualifies for the dividends received deduction available to corporate shareholders.
| Portfolio | Percentage | |||
| Developing Markets Equity | 0.00 | % | ||
| Emerging Markets Core Equity | 0.51 | |||
| Emerging Markets Equity Advantage | 0.21 | |||
| Emerging Markets Equity | 0.00 | |||
| Equity Franchise | 14.80 | |||
| Global Equity Select | 85.02 | |||
| Global Listed Infrastructure | 24.15 | |||
| Global Strategic Equity | 53.45 | |||
| International Equity Advantage | 0.02 | |||
| International Equity | 0.00 | |||
| International Equity Select | 0.00 | |||
| International Quality Growth | 0.00 | |||
| International Small Cap Equity | 0.00 | |||
| International Strategic Equity | 0.00 | |||
| Managed Equity Volatility | 62.66 | |||
| US Equity Concentrated | 39.86 | |||
| US Equity Focus | 100.00 | |||
| US Small Cap Equity Select | 100.00 | |||
| US Sustainable Equity | 98.07 | |||
| US Systematic Small Cap Equity | 100.00 | |||
Pursuant to Section 871 of the Code, the Portfolios have no designated qualified short-term gains for purposes of exempting withholding of tax on such distributions to US nonresident shareholders.
332 Annual Report
The Portfolios intend to pass through to shareholders foreign source income and foreign taxes paid, or up to the maximum amount allowable, as a foreign tax credit.
| Portfolio | Foreign Source Income | Foreign Tax Paid/Credit | ||||||
| Developing Markets Equity | $ | 3,523,237 | $ | 364,855 | ||||
| Emerging Markets Core Equity | 4,084,883 | 405,699 | ||||||
| Emerging Markets Equity Advantage | 4,057,507 | 577,242 | ||||||
| Emerging Markets Equity | 153,631,312 | 18,767,145 | ||||||
| Equity Franchise | — | — | ||||||
| Global Equity Select | — | — | ||||||
| Global Listed Infrastructure | 256,098,972 | 14,539,888 | ||||||
| Global Strategic Equity | 137,390 | 15,274 | ||||||
| International Equity Advantage | 119,446 | 13,579 | ||||||
| International Equity | 33,510,500 | 1,505,439 | ||||||
| International Equity Select | 1,409,413 | 114,485 | ||||||
| International Quality Growth | 3,389,482 | 351,343 | ||||||
| International Small Cap Equity | — | — | ||||||
| International Strategic Equity | 105,437,766 | 6,899,047 | ||||||
| Managed Equity Volatility | — | — | ||||||
| US Equity Concentrated | — | — | ||||||
| US Equity Focus | — | — | ||||||
| US Small Cap Equity Select | — | — | ||||||
| US Sustainable Equity | — | — | ||||||
| US Systematic Small Cap Equity | — | — | ||||||
Annual Report 333
Of the dividends paid by the Portfolios, the corresponding amount represents the long-term capital gains paid to shareholders.
| Portfolio | Long-Term Capital Gains | |||
| Developing Markets Equity | $ | — | ||
| Emerging Markets Core Equity | — | |||
| Emerging Markets Equity Advantage | — | |||
| Emerging Markets Equity | — | |||
| Equity Franchise | — | |||
| Global Equity Select | 1,089,454 | |||
| Global Listed Infrastructure | — | |||
| Global Strategic Equity | — | |||
| International Equity Advantage | — | |||
| International Equity | 11,858,271 | |||
| International Equity Select | — | |||
| International Quality Growth | — | |||
| International Small Cap Equity | — | |||
| International Strategic Equity | — | |||
| Managed Equity Volatility | 207,733 | |||
| US Equity Concentrated | 141,678,406 | |||
| US Equity Focus | 206,582 | |||
| US Small Cap Equity Select | 2,977,480 | |||
| US Sustainable Equity | 31,152 | |||
| US Systematic Small Cap Equity | — | |||
334 Annual Report
Proxy Voting
A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the Securities and Exchange Commission (the “SEC”) website at https://www.sec.gov.
The Fund’s proxy voting record for the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SEC’s website at https://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.
Schedule of Portfolio Holdings
The Fund files the complete schedule of each Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.
Annual Report 335
The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
www.lazardassetmanagement.com
Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Custodian
State Street Bank and Trust Company
One Iron Street
Boston, Massachusetts 02210-1641
Transfer Agent and Dividend Disbursing Agent
SS&C Global Investor and Distribution Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169-0953
Telephone: 617-483-7000
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015
Legal Counsel
Dechert LLP
1095 Avenue of the Americas
New York, New York 10036-6797
Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com.
LZDPS020 |  |
Lazard Funds
Annual Report
December 31, 2023
Fixed Income Funds
Lazard US Convertibles Portfolio
Lazard US High Yield Portfolio
Lazard US Short Duration Fixed Income Portfolio
The Lazard Funds, Inc. Table of Contents
Please consider a Portfolio’s investment objective, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. (the “Fund”), you may obtain a prospectus or a Portfolio’s summary prospectus by calling 800-823-6300, or online, at www.lazardassetmanagement.com. Read the prospectus or the Portfolio’s summary prospectus carefully before you invest. The prospectus and the Portfolio’s summary prospectus contain the investment objective, risks, charges, expenses and other information about the Portfolio, which are not detailed in this report. Many states have abandoned property laws that require mutual fund companies to have evidence of contact from shareholders at least every three years. Please log into any investment accounts that you may have or contact the Fund by calling 800-823-6300 to ensure that your account stays active.
Distributed by Lazard Asset Management Securities LLC.
Annual Report 1
The Lazard Funds, Inc. A Message from Lazard (unaudited)
Dear Shareholder:
The year 2023 saw bloodshed from wars in Europe and the Middle East, ample displays of political complexities in the US, and further advances in the development of machines that can mimic human thinking. For financial markets, however, which endured nearly 4,000 basis points of interest rate hikes since late 2021, the year was defined by one simple question posed to major central banks: What comes next?
Financial markets were a roller coaster in 2023, as investors were forced to constantly adjust their expectations on when key central banks would retreat from their restrictive monetary policy stances out of fear that these positions would tip the global economy into a severe recession. Against this backdrop, the US Federal Reserve (the “Fed”) was front and center in the minds of investors, as it waged its most aggressive rate-hiking campaign in over 40 years. After lifting interest rates seven times in 2022, the world’s most influential central bank did so again four times in 2023, raising borrowing costs to their highest level in 22 years. Data suggesting that domestic inflation was cooling, and that the US economy remained remarkably resilient sparked optimism in the second half of the year that the Fed was done raising interest rates and perhaps would begin lowering them in 2024. While the Fed did, in fact, pass up opportunities to raise interest rates higher in its last three policy meetings of 2023, it also sent mixed signals about the trajectory of its rate-hiking campaign, which triggered spikes in volatility across financial markets.
The Fed was not the only central bank to make news in 2023. In Europe, both the European Central Bank and Bank of England continued to lift interest rates at a furious pace before pausing their inflation-fighting campaigns in the latter part of the year. Meanwhile, in Asia, the Bank of Japan, which kept interest rates ultra-low during the global monetary tightening cycle, began to veer from this path in the closing months of the year amid signs that inflation was accelerating in Japan.
2 Annual Report
After suffering through a dismal 2022, financial markets rebounded in 2023, driven primarily by hopes that inflation had fallen enough for key central banks, particularly the Fed, to begin cutting interest rates next year. Global equity markets, as measured by the MSCI All Country World Index, surged 22.2% in 2023 while global bond markets, as measured by the Bloomberg Global Aggregate Bond Index, gained 5.7%. (Index returns are in US dollar terms.)
The challenging market conditions in 2023 are a reminder of the importance of active portfolio management. Turbulent markets are likely to differentiate winners from losers. We remain confident that fundamental analysis and bottom-up security selection will be crucial drivers of performance going forward. We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities.
Sincerely,
Lazard Asset Management LLC
Annual Report 3
The Lazard Funds, Inc. Investment Overviews (unaudited)
MARKET OVERVIEWS
US Fixed Income
After suffering its worst-performing year on record in 2022, the US bond market gained in 2023, as investors speculated about the path ahead for the Federal Reserve’s interest rate policy. In January, the bond market rallied on hopes that a severe worldwide economic recession could be avoided, and that slowing inflation would induce major central banks to slow the pace of their forceful monetary tightening cycles. That optimism faded in subsequent months, however, as the US central bank continued its aggressive rate-hiking campaign and hinted that interest rates could stay elevated for a while. The fallout from these rate hikes was evident in the first half of the year when bond losses contributed to regional bank weakness in the US. The Fed, as expected, kept interest rates steady at a 22-year high following policy meetings in September, November, and December. However, after months of signaling that it was adopting a “higher for longer” interest rate policy stance, the Fed seemed to pivot in November, as data suggested that they had made enough progress on inflation and a “soft landing” for the US economy was likely. As a result, investors cheered near the end of the year when the Fed hinted that its forceful rate-hiking campaign, which incorporated 11 increases since 2022, including four times in 2023, had reached its conclusion and forecast that it could reduce interest rates three times in 2024. After briefly exceeding the psychologically important threshold of 5% in late October, the yield on the benchmark 10-year US Treasury note ended the year exactly where it started, at 3.88%.
U.S. Treasury coupon issuance, which was expected to be very high due a large budget deficit, was targeted to short term Bills instead. The combination of redirected Treasury supply and a seemingly well-timed pivot by the Fed caused rates to rally significantly in November and December. This signal from the Fed was so strong that the Bloomberg Aggregate US Bond Index, which fell 2.8% in the first 10 months of 2023, surged approximately 8.5% to close the year up 5.5%.
4 Annual Report
From a sector perspective, the monetary background led to strong corporate credit performance for the year, highlighted by a hefty excess return relative to US Treasuries of 4.6%. Additionally, the credit curve flattened this year, with long credit spreads compressing 0.2% versus intermediate corporate credit spreads. This compression is seen in excess return differentials between intermediate and long corporate indices where long corporate credit outperformed intermediate corporates by 4.6%.
US Convertibles
Overall, 2023 proved to be a supportive environment for US convertibles, with positive momentum developing in the last two months of the year. A confluence of factors contributed to the constructive backdrop including economic growth proving more resilient than expectations, inflation showing important dis-inflation trends and the US Federal Reserve pivoting away from their hawkish stance. While there was volatility throughout the year, US equities ended higher and credit spreads finished tighter. Given these factors, US convertibles showed important participation in the risk-rally during 2023. In the US convertible bond market, the consumer cyclical and information technology sectors outperformed while the energy and utilities sectors lagged for the year. Volumes of new issuance strongly outpaced 2022 with approximately $53 billion of issuance during the year. Utilities, information technology, and healthcare were the leading issuers from a sector perspective.
US High Yield
US high yield bonds posted positive returns for the year, supported by tighter credit spreads. As the year concluded, intense scrutiny was given to the Fed’s trajectory for cutting interest rates, inflation concerns, and a possible recession over the next twelve months.
The ICE BofA US Cash Pay BB-B Non-Distressed High Yield Index (“Cash Pay Index”) finished the year up 12.22%. The option-adjusted spread (“OAS”) continued to tighten and finished 117 bps tighter at 253 bps in 2023. Lower-quality credit outperformed higher quality with the ICE BofA CCC & Lower Cash Pay High Yield Index increasing 20.18%, ICE BofA B Cash Pay High Yield Index gaining 13.93%, and the ICE BofA BB Cash Pay High Yield Index rising 11.43%.
Annual Report 5
High yield bond issuance totaled $176.0 billion, which eclipsed last year’s $107.0 billion, but was drastically lower than the record of $449.9 billion set in 2020. Higher interest rates were an impediment for many issuers to tap the primary market. Refinancing (66%) was the leading use of proceeds, followed by acquisition financing (23%), and general corporate purposes (11%).
High yield fund flows were negative, marked by overall outflows of $7.9 billion for the year. However, these outflows were dominated by mutual funds, as exchange traded funds (“ETFs”) had a net yearly inflow of $362 million into ETFs according to JPMorgan.
US Short Duration Fixed Income
Among the set of challenges facing market participants this year, regional bank failures, congressional budget negotiations, inflation uncertainty, and the scramble to achieve direction on monetary policy were critical factors driving market outcomes. Importantly, inflation remains above the Fed’s target level, and this is especially true for sticky inflation components that are less amenable to change.
Despite this set of troubling circumstances, the markets generally proved resilient through the first eight months of the year, with US Treasury rates and credit spreads more-or-less settling into the same range they were in at the outset of the year, with rates modestly higher and credit spreads moderately tighter. September and October were pivotal months as inflation, monetary policy, fiscal policy, debt supply, and technical pressures finally broke the rate range and pushed US Treasury yields significantly higher, with 10-year US Treasury yields touching the 5% level before settling into a lower range. November and December pushed the bond market forcibly in the other direction, with November boasting the highest monthly US Aggregate Bond market return since 1985, with December following suit with a strong 3.83% monthly gain.
In terms of monetary policy, the market is eagerly looking out for the light at the end of the tunnel, while the Fed attempts to manage the markets’ expectations about the work that still needs to be done to tame inflation.
6 Annual Report
PORTFOLIO PERFORMANCE
Lazard US Convertibles Portfolio
For the year ended December 31, 2023, the Lazard US Convertibles Portfolio’s Institutional Shares posted a total return of 10.62%, while Open Shares posted a total return of 10.35%, as compared with the 12.99% return for the ICE BofA US Convertible® Index.
Revenue recovery plays added on a relative basis, led by cruise operators, internet services, and live entertainment on the continuation of strong consumer demand for their services. Selection in growth companies in software and cybersecurity added to performance as moderating interest rate expectations and positive quarterly results supported valuations. Tactical management of duration boosted relative performance. The increase in the Portfolio’s duration during November benefitted absolute and relative performance with the move lower in US rates at the end of the year.
Security selection in US airlines hurt, as overweight exposure to domestically focused airlines underperformed due to higher costs (i.e., labor and fuel) and lower prices stemming from increased competition. Lack of exposure to US Steel detracted from relative performance as this company was targeted by Nippon Steel for acquisition. Security selection in biotechnology cost, as underweight exposure to a few names which outperformed on positive clinical trials and speculation about mergers and acquisitions. Lack of exposure to crypto-currency linked names negatively impacted relative performance. Not owning MicroStrategy hurt, as this company had amassed a large stock of bitcoin during the past few years and benefited from its strong valuation increase during 2023.
Lazard US High Yield Portfolio
For the year ended December 31, 2023, the Lazard US High Yield Portfolio’s Institutional Shares posted a total return of 10.65%, while Open Shares posted a total return of 10.35% and R6 Shares posted a total return of 10.65%, as compared with the 12.22% return for the ICE BofA US Cash Pay BB-B Non-Distressed High Yield Index.
Annual Report 7
Underweight exposure to the financial services and energy sectors detracted from performance. Security selection in the telecommunications sector was a headwind to performance. The Portfolio’s performance suffered from a higher average credit quality profile than the index (BB vs BB-), with an overweight to BBB and BB credits and underweights to B credits.
Overweight exposures to the consumer staples and real estate sectors contributed to relative performance. Overweight exposure to the industrials sector (capital goods) sector also boosted relative performance. Overweight exposure to intermediate duration and security selection in Cinemark and Standard Industries, helped relative performance versus the benchmark.
Lazard US Short Duration Fixed Income Portfolio
For the year ended December 31, 2023, the Lazard US Short Duration Fixed Income Portfolio’s Institutional Shares posted a total return of 4.26%, while Open Shares posted a total return of 3.98%, as compared with the 4.26% return for the ICE BofA 1-3 Year US Treasury® Index.
Overweight exposures to US corporates and asset backed securities, both of which outperformed US Treasuries, contributed to relative performance.
Relative duration positioning detracted.
8 Annual Report
The Lazard Funds, Inc. Performance Overviews (unaudited)
Please see the “Notes to the Performance Overviews” for important information about the calculation of total returns, performance information generally, performance differences between Institutional Shares, Open Shares and R6 Shares, and the indices shown below.
Lazard US Convertibles Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Convertibles Portfolio and the ICE BofA US Convertible Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One Year | Since Inception | † | |||
| Institutional Shares | 10.62% | 10.62% | |||
| Open Shares | 10.35% | 10.35% | |||
| ICE BofA US Convertible Index | 12.99% | 12.99% |
| † | The inception date for the Institutional Shares and Open Shares was December 30, 2022. |
Annual Report 9
Lazard US High Yield Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US High Yield Portfolio and Cash Pay Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One Year | Five Year | Ten Year | Since Inception | † | |||||
| Institutional Shares | 10.65% | 4.01% | 3.46% | 4.03% | |||||
| Open Shares | 10.35% | 3.70% | 3.18% | 3.57% | |||||
| R6 Shares | 10.65% | 3.51% | N/A | 2.99% | |||||
| Cash Pay Index | 12.22% | 5.19% | 4.57% | 5.94% (Institutional Shares) 5.90% (Open Shares) 4.55% (R6 Shares) |
| † | The inception date for the Institutional Shares was January 2, 1998, for the Open Shares was February 24, 1998 and for the R6 Shares was November 3, 2016. |
10 Annual Report
Lazard US Short Duration Fixed Income Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard US Short Duration Fixed Income Portfolio and the ICE BofAML 1-3 Year US Treasury® Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One Year | Five Year | Ten Year | |||||
| Institutional Shares | 4.26% | 1.28% | 0.98% | ||||
| Open Shares | 3.98% | 1.06% | 0.83% | ||||
| ICE BofAML 1-3 Year US Treasury Index | 4.26% | 1.30% | 1.05% |
| Notes to Performance Overviews: |
Information About Portfolio Performance Shown Above
Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of a Portfolio may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s administrator (“State Street”), or SS&C Global Investor and Distribution Solutions Inc., the Fund’s transfer agent and dividend disbursing agent (“SS&C GIDS”); without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
Performance results do not include adjustments made for financial reporting purposes in accordance with US Generally Accepted Accounting Principles (“GAAP”), if any, and also exclude one-time adjustments related to the receipt of settlement proceeds by the US High Yield Portfolio from a class action lawsuit which impacted the total return of R6 Shares but did not impact that of Institutional or Open; amounts may differ from amounts reported in the financial highlights.
The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of an investment in a Portfolio will fluctuate, so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated, there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graphs and tables above do not reflect the deduction of taxes that a shareholder would pay on a Portfolio’s distributions or the redemption of Portfolio shares.
Annual Report 11
The performance of Institutional Shares, Open Shares and R6 Shares, as applicable, may vary, primarily based on the differences in fees borne by shareholders investing in different classes of a Portfolio.
Information About Index Performance Shown Above
The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The indices are unmanaged, have no fees or costs and are not available for investment.
The Cash Pay Index is the ICE Bank of America Merrill Lynch (“BofAML”) BB-B US Cash Pay Non-Distressed High Yield® Index. It is constructed to mirror the BB-B non-distressed sector of the public high yield corporate debt market and is a subset of the ICE BofAML High Yield Cash Pay® Index.
The ICE BofA US Convertible Index tracks the performance of convertible securities publicly issued in the United States convertible bond market.
The ICE BofAML 1-3 Year US Treasury Index tracks the performance of the direct sovereign debt of the US government having a maturity of at least one year and less than three years.
12 Annual Report
The Lazard Funds, Inc.
Information About Your Portfolio’s Expenses (unaudited)
Expense Example
As a shareholder in a Portfolio, you incur ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2023 through December 31, 2023 and held for the entire period.
Actual Expenses
For each share class of the Portfolios, the first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each share class of the Portfolios, the second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the class’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
Annual Report 13
| Portfolios | Beginning Account Value 7/1/23 | Ending Account Value 12/31/23 | Expenses Paid During Period* 7/1/23 - 12/31/23 | Annualized Expense Ratio During Period 7/1/23 - 12/31/23 | |||||
| US Convertibles | |||||||||
| Institutional Shares | |||||||||
| Actual | $1,000.00 | $1,014.10 | $3.81 | 0.75% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,021.42 | $3.82 | 0.75% | |||||
| Open Shares | |||||||||
| Actual | $1,000.00 | $1,011.80 | $5.07 | 1.00% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,020.16 | $5.09 | 1.00% | |||||
| US High Yield | |||||||||
| Institutional Shares | |||||||||
| Actual | $1,000.00 | $1,067.00 | $2.87 | 0.55% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,022.43 | $2.80 | 0.55% | |||||
| Open Shares | |||||||||
| Actual | $1,000.00 | $1,065.50 | $4.16 | 0.80% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,021.17 | $4.08 | 0.80% | |||||
| R6 Shares | |||||||||
| Actual | $1,000.00 | $1,066.90 | $2.87 | 0.55% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,022.43 | $2.80 | 0.55% | |||||
| US Short Duration Fixed Income | |||||||||
| Institutional Shares | |||||||||
| Actual | $1,000.00 | $1,032.10 | $2.05 | 0.40% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,023.19 | $2.04 | 0.40% | |||||
| Open Shares | |||||||||
| Actual | $1,000.00 | $1,030.60 | $3.33 | 0.65% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,021.93 | $3.31 | 0.65% |
| * | Expenses are equal to the annualized expense ratio, net of expenses, waivers and reimbursements, of each share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
14 Annual Report
The Lazard Funds, Inc. Portfolio Holdings Presented by
Asset Class/Credit Rating December 31, 2023 (unaudited)
| Asset Class/S&P Credit Rating* | Lazard US Convertibles Portfolio | Lazard US High Yield Portfolio | Lazard US Short Duration Fixed Income Portfolio | |||||||||
| Fixed Income | ||||||||||||
| AAA | — | % | — | % | 54.7 | % | ||||||
| A+ | — | — | 1.4 | |||||||||
| A | — | — | 1.4 | |||||||||
| A- | 1.2 | — | 5.9 | |||||||||
| BBB+ | 1.9 | — | 9.6 | |||||||||
| BBB | 6.0 | 0.6 | — | |||||||||
| BBB- | 5.1 | 3.8 | — | |||||||||
| BB+ | 1.1 | 21.7 | — | |||||||||
| BB | 1.0 | 25.8 | — | |||||||||
| BB- | — | 18.0 | — | |||||||||
| B+ | — | 12.6 | — | |||||||||
| B | — | 8.5 | — | |||||||||
| B- | — | 1.7 | — | |||||||||
| CC | — | 0.3 | — | |||||||||
| CCC+ | — | 1.3 | — | |||||||||
| Not Applicable | 81.0 | 1.0 | 26.8 | |||||||||
| Short-Term Investments | 2.7 | 4.7 | 0.2 | |||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100 | % | ||||||
| * | Represents percentage of total investments. |
Annual Report 15
The Lazard Funds, Inc. Portfolios of Investments
December 31, 2023
The accompanying notes are an integral part of these financial statements.
16 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Convertibles Portfolio (continued) | ||||||||
| Communications Equipment | 1.0% | ||||||||
| Lumentum Holdings, Inc., 0.500%, 06/15/28 | $ | 123 | $ | 97,404 | ||||
| Construction & Engineering | 1.0% | ||||||||
| Fluor Corp., 1.125%, 08/15/29 | 89 | 97,121 | ||||||
| Consumer Staples Distribution & Retail | 0.5% | ||||||||
| Chefs’ Warehouse, Inc., 2.375%, 12/15/28 | 50 | 47,711 | ||||||
| Diversified REITs | 1.0% | ||||||||
| Welltower OP LLC, 2.750%, 05/15/28 | 83 | 92,180 | ||||||
| Electric Utilities | 2.3% | ||||||||
| Alliant Energy Corp., 3.875%, 03/15/26 | 84 | 83,790 | ||||||
| Southern Co., 3.875%, 12/15/25 | 128 | 128,704 | ||||||
| 212,494 | ||||||||
| Electrical Equipment | 0.4% | ||||||||
| Array Technologies, Inc., 1.000%, 12/01/28 | 36 | 35,541 | ||||||
| Entertainment | 2.7% | ||||||||
| Cinemark Holdings, Inc., 4.500%, 08/15/25 | 21 | 25,475 | ||||||
| Live Nation Entertainment, Inc., 2.000%, 02/15/25 | 212 | 224,063 | ||||||
| 249,538 | ||||||||
| Ground Transportation | 2.1% | ||||||||
| Uber Technologies, Inc., 0.000%, 12/15/25 | 192 | 196,197 |
The accompanying notes are an integral part of these financial statements.
Annual Report 17
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Convertibles Portfolio (continued) | ||||||||
| Health Care Equipment & Supplies | 5.4% | ||||||||
| CONMED Corp., 2.250%, 06/15/27 | $ | 46 | $ | 46,202 | ||||
| Dexcom, Inc., 0.250%, 11/15/25 | 260 | 272,740 | ||||||
| Insulet Corp., 0.375%, 09/01/26 | 85 | 98,090 | ||||||
| Integra LifeSciences Holdings Corp., 0.500%, 08/15/25 | 91 | 85,904 | ||||||
| 502,936 | ||||||||
| Health Care Providers & Services | 1.1% | ||||||||
| Guardant Health, Inc., 0.000%, 11/15/27 | 143 | 100,815 | ||||||
| Health Care Technology | 1.7% | ||||||||
| Teladoc Health, Inc., 1.250%, 06/01/27 | 188 | 155,457 | ||||||
| Hotels, Restaurants & Leisure | 6.6% | ||||||||
| Airbnb, Inc., 0.000%, 03/15/26 | 59 | 53,135 | ||||||
| Booking Holdings, Inc., 0.750%, 05/01/25 | 62 | 117,106 | ||||||
| Carnival Corp., 5.750%, 10/01/24 | 45 | 85,725 | ||||||
| Marriott Vacations Worldwide Corp., 0.000%, 01/15/26 | 103 | 90,949 | ||||||
| NCL Corp. Ltd., 5.375%, 08/01/25 | 72 | 92,736 | ||||||
| Pebblebrook Hotel Trust, 1.750%, 12/15/26 | 90 | 80,604 | ||||||
| Vail Resorts, Inc., 0.000%, 01/01/26 | 103 | 92,121 | ||||||
| 612,376 |
The accompanying notes are an integral part of these financial statements.
18 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Convertibles Portfolio (continued) | ||||||||
| Independent Power & Renewable Electricity Producers | 0.7% | ||||||||
| NextEra Energy Partners LP, 0.000%, 11/15/25 | $ | 74 | $ | 65,009 | ||||
| Interactive Media & Services | 5.1% | ||||||||
| Match Group Financeco 3, Inc., 2.000%, 01/15/30 | 250 | 218,275 | ||||||
| Snap, Inc., 0.750%, 08/01/26 | 136 | 145,078 | ||||||
| Ziff Davis, Inc., 1.750%, 11/01/26 | 120 | 114,000 | ||||||
| 477,353 | ||||||||
| IT Services | 7.7% | ||||||||
| Akamai Technologies, Inc., 0.375%, 09/01/27 | 151 | 168,893 | ||||||
| Block, Inc., 0.125%, 03/01/25 | 171 | 167,905 | ||||||
| Cloudflare, Inc., 0.000%, 08/15/26 | 169 | 152,396 | ||||||
| MongoDB, Inc., 0.250%, 01/15/26 | 73 | 144,449 | ||||||
| Okta, Inc., 0.125%, 09/01/25 | 84 | 77,742 | ||||||
| 711,385 | ||||||||
| Leisure Products | 2.0% | ||||||||
| Royal Caribbean Cruises Ltd., 6.000%, 08/15/25 | 71 | 189,357 | ||||||
| Machinery | 0.9% | ||||||||
| Middleby Corp., 1.000%, 09/01/25 | 66 | 80,718 |
The accompanying notes are an integral part of these financial statements.
Annual Report 19
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Convertibles Portfolio (continued) | ||||||||
| Media | 4.3% | ||||||||
| Cable One, Inc., 1.125%, 03/15/28 | $ | 117 | $ | 89,213 | ||||
| Liberty Broadband Corp., 3.125%, 03/31/53 | 135 | 134,068 | ||||||
| Liberty Media Corp., 3.750%, 03/15/28 | 88 | 105,468 | ||||||
| Liberty Media Corp., 2.250%, 08/15/27 | 67 | 68,302 | ||||||
| 397,051 | ||||||||
| Multi-Utilities | 1.4% | ||||||||
| CMS Energy Corp., 3.375%, 05/01/28 | 130 | 129,220 | ||||||
| Oil, Gas & Consumable Fuels | 3.2% | ||||||||
| EQT Corp., 1.750%, 05/01/26 | 41 | 109,035 | ||||||
| Pioneer Natural Resources Co., 0.250%, 05/15/25 | 77 | 187,495 | ||||||
| 296,530 | ||||||||
| Passenger Airlines | 3.1% | ||||||||
| American Airlines Group, Inc., 6.500%, 07/01/25 | 12 | 13,350 | ||||||
| JetBlue Airways Corp., 0.500%, 04/01/26 | 149 | 108,024 | ||||||
| Southwest Airlines Co., 1.250%, 05/01/25 | 164 | 166,337 | ||||||
| 287,711 | ||||||||
| Real Estate Management & Development | 1.1% | ||||||||
| Zillow Group, Inc., 1.375%, 09/01/26 | 74 | 101,602 |
The accompanying notes are an integral part of these financial statements.
20 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Convertibles Portfolio (continued) | ||||||||
| Semiconductors & Semiconductor Equipment | 7.2% | ||||||||
| Enphase Energy, Inc., 0.000%, 03/01/26 | $ | 151 | $ | 138,316 | ||||
| Microchip Technology, Inc., 0.125%, 11/15/24 | 132 | 144,870 | ||||||
| ON Semiconductor Corp., 0.500%, 03/01/29 | 172 | 183,610 | ||||||
| Wolfspeed, Inc., 0.250%, 02/15/28 | 305 | 206,942 | ||||||
| 673,738 | ||||||||
| Software | 10.8% | ||||||||
| Bill Holdings, Inc., 0.000%, 12/01/25 | 98 | 92,414 | ||||||
| Five9, Inc., 0.500%, 06/01/25 | 109 | 104,422 | ||||||
| HubSpot, Inc., 0.375%, 06/01/25 | 46 | 95,473 | ||||||
| Nutanix, Inc., 0.250%, 10/01/27 | 70 | 73,150 | ||||||
| Palo Alto Networks, Inc., 0.375%, 06/01/25 | 105 | 311,640 | ||||||
| Tyler Technologies, Inc., 0.250%, 03/15/26 | 80 | 81,080 | ||||||
| Workiva, Inc., 1.250%, 08/15/28 | 66 | 66,891 | ||||||
| Zscaler, Inc., 0.125%, 07/01/25 | 117 | 177,898 | ||||||
| 1,002,968 | ||||||||
| Specialty Retail | 1.3% | ||||||||
| Wayfair, Inc., 3.250%, 09/15/27 | 96 | 118,685 |
The accompanying notes are an integral part of these financial statements.
Annual Report 21
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Convertibles Portfolio (continued) | ||||||||
| Technology Hardware, Storage & Peripherals | 2.0% | ||||||||
| Seagate HDD Cayman, 3.500%, 06/01/28 | $ | 153 | $ | 185,359 | ||||
| Total Convertible Corporate Bonds (Cost $7,823,586) | 8,391,827 | |||||||
| Description | Shares | Fair Value | ||||||
| Preferred Stocks | 7.7% | ||||||||
| Banks | 3.6% | ||||||||
| Bank of America Corp., Series L | 193 | $ | 232,619 | |||||
| Wells Fargo & Co., Series L | 83 | 99,237 | ||||||
| 331,856 | ||||||||
| Electric Utilities | 0.8% | ||||||||
| NextEra Energy, Inc. | 2,012 | 76,697 | ||||||
| Financial Services | 1.8% | ||||||||
| AMG Capital Trust II | 1,426 | 71,115 | ||||||
| Apollo Global Management, Inc. | 1,700 | 95,863 | ||||||
| 166,978 | ||||||||
| Independent Power & Renewable Electricity Producers | 1.0% | ||||||||
| AES Corp., Series A | 1,211 | 92,133 | ||||||
| Machinery | 0.5% | ||||||||
| Chart Industries, Inc., Series B | 880 | 48,910 | ||||||
| Total Preferred Stocks (Cost $763,194) | 716,574 |
The accompanying notes are an integral part of these financial statements.
22 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US Convertibles Portfolio (concluded) | ||||||||
| Short-Term Investments | 2.8% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $255,621) | 255,621 | $ | 255,621 | |||||
| Total Investments | 100.8% (Cost $8,842,401) | $ | 9,364,022 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.8)% | (77,842 | ) | ||||||
| Net Assets | 100.0% | $ | 9,286,180 |
Futures Contracts open at December 31, 2023:
| Financial Futures | Number of Contracts | Notional Amount | Expiration Date | Notional Cost | Fair Value | Unrealized Appreciation | |||||||
| CBOT 5 Year U.S. Treasury Notes | 4 | $400,000 | 03/28/2024 | $424,287 | $435,094 | $10,807 |
The accompanying notes are an integral part of these financial statements.
Annual Report 23
The accompanying notes are an integral part of these financial statements.
24 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US High Yield Portfolio (continued) | ||||||||
| W. R. Grace Holdings LLC, 4.875%, 06/15/27 (#) | $ | 1,000 | $ | 962,101 | ||||
| 6,718,128 | ||||||||
| Commercial Services & Supplies | 3.0% | ||||||||
| ADT Security Corp., 4.125%, 08/01/29 (#) | 250 | 230,063 | ||||||
| Clean Harbors, Inc., 4.875%, 07/15/27 (#) | 2,000 | 1,959,784 | ||||||
| GFL Environmental, Inc., 3.500%, 09/01/28 (#) | 1,750 | 1,617,106 | ||||||
| Prime Security Services Borrower LLC, 3.375%, 08/31/27 (#) | 1,500 | 1,390,793 | ||||||
| 5,197,746 | ||||||||
| Construction Materials | 1.0% | ||||||||
| James Hardie International Finance DAC, 5.000%, 01/15/28 (#) | 1,760 | 1,702,508 | ||||||
| Consumer Finance | 1.1% | ||||||||
| Ford Motor Credit Co. LLC: | ||||||||
| 2.700%, 08/10/26 | 1,000 | 926,188 | ||||||
| 4.125%, 08/17/27 | 1,000 | 946,683 | ||||||
| 1,872,871 | ||||||||
| Consumer Staples Distribution & Retail | 2.8% | ||||||||
| Albertsons Cos., Inc., 3.500%, 03/15/29 (#) | 2,000 | 1,815,964 | ||||||
| Performance Food Group, Inc., 4.250%, 08/01/29 (#) | 1,800 | 1,650,947 | ||||||
| U.S. Foods, Inc., 4.625%, 06/01/30 (#) | 1,500 | 1,397,942 | ||||||
| 4,864,853 | ||||||||
| Containers & Packaging | 4.8% | ||||||||
| Ardagh Metal Packaging Finance USA LLC, 4.000%, 09/01/29 (#) | 1,200 | 1,015,772 |
The accompanying notes are an integral part of these financial statements.
Annual Report 25
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US High Yield Portfolio (continued) | ||||||||
| Ardagh Packaging Finance PLC, 4.125%, 08/15/26 (#) | $ | 1,200 | $ | 1,095,000 | ||||
| Ball Corp., 2.875%, 08/15/30 | 2,000 | 1,715,970 | ||||||
| Graphic Packaging International LLC, 3.500%, 03/15/28 (#) | 1,600 | 1,484,653 | ||||||
| Sealed Air Corp./Sealed Air Corp. U.S., 6.125%, 02/01/28 (#) | 1,000 | 1,008,612 | ||||||
| Silgan Holdings, Inc., 4.125%, 02/01/28 | 1,996 | 1,906,254 | ||||||
| 8,226,261 | ||||||||
| Diversified Consumer Services | 1.1% | ||||||||
| Service Corp. International, 4.625%, 12/15/27 | 2,000 | 1,935,000 | ||||||
| Diversified REITs | 4.3% | ||||||||
| HAT Holdings I LLC, 3.375%, 06/15/26 (#) | 1,500 | 1,409,803 | ||||||
| Iron Mountain, Inc.: | ||||||||
| 4.875%, 09/15/29 (#) | 500 | 473,542 | ||||||
| 4.500%, 02/15/31 (#) | 1,250 | 1,131,897 | ||||||
| Park Intermediate Holdings LLC, 4.875%, 05/15/29 (#) | 1,500 | 1,388,454 | ||||||
| RHP Hotel Properties LP, 4.500%, 02/15/29 (#) | 1,750 | 1,627,571 | ||||||
| SBA Communications Corp., 3.125%, 02/01/29 | 1,500 | 1,347,745 | ||||||
| 7,379,012 | ||||||||
| Diversified Telecommunication Services | 2.8% | ||||||||
| Connect Finco Sarl, 6.750%, 10/01/26 (#) | 1,500 | 1,486,875 | ||||||
| Frontier Communications Holdings LLC, 8.750%, 05/15/30 (#) | 1,500 | 1,543,063 | ||||||
| Hughes Satellite Systems Corp., 5.250%, 08/01/26 | 2,091 | 1,840,024 | ||||||
| 4,869,962 |
The accompanying notes are an integral part of these financial statements.
26 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US High Yield Portfolio (continued) | ||||||||
| Electric Utilities | 0.7% | ||||||||
| NRG Energy, Inc., 3.625%, 02/15/31 (#) | $ | 1,500 | $ | 1,288,768 | ||||
| Electrical Equipment | 1.5% | ||||||||
| Sensata Technologies, Inc.: | ||||||||
| 4.375%, 02/15/30 (#) | 1,100 | 1,020,209 | ||||||
| 3.750%, 02/15/31 (#) | 250 | 220,183 | ||||||
| Vistra Operations Co. LLC, 4.375%, 05/01/29 (#) | 1,500 | 1,400,263 | ||||||
| 2,640,655 | ||||||||
| Entertainment | 1.1% | ||||||||
| Cinemark USA, Inc., 5.250%, 07/15/28 (#) | 1,500 | 1,376,107 | ||||||
| Live Nation Entertainment, Inc., 3.750%, 01/15/28 (#) | 500 | 466,296 | ||||||
| 1,842,403 | ||||||||
| Financial Services | 0.9% | ||||||||
| Suburban Propane Partners LP, 5.000%, 06/01/31 (#) | 1,750 | 1,586,526 | ||||||
| Food Products | 4.4% | ||||||||
| B&G Foods, Inc., 5.250%, 04/01/25 | 526 | 517,928 | ||||||
| Darling Ingredients, Inc., 6.000%, 06/15/30 (#) | 2,000 | 2,001,480 | ||||||
| Lamb Weston Holdings, Inc., 4.125%, 01/31/30 (#) | 2,000 | 1,843,861 | ||||||
| Post Holdings, Inc., 4.500%, 09/15/31 (#) | 2,000 | 1,792,293 | ||||||
| TreeHouse Foods, Inc., 4.000%, 09/01/28 | 1,750 | 1,549,090 | ||||||
| 7,704,652 |
The accompanying notes are an integral part of these financial statements.
Annual Report 27
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US High Yield Portfolio (continued) | ||||||||
| Health Care Equipment & Supplies | 2.7% | ||||||||
| Avantor Funding, Inc., 3.875%, 11/01/29 (#) | $ | 1,500 | $ | 1,362,176 | ||||
| Hologic, Inc., 4.625%, 02/01/28 (#) | 2,000 | 1,919,824 | ||||||
| Medline Borrower LP, 3.875%, 04/01/29 (#) | 1,500 | 1,356,217 | ||||||
| 4,638,217 | ||||||||
| Health Care Providers & Services | 3.9% | ||||||||
| Encompass Health Corp., 4.625%, 04/01/31 | 1,849 | 1,701,419 | ||||||
| Legacy LifePoint Health LLC, 4.375%, 02/15/27 (#) | 1,250 | 1,154,049 | ||||||
| Molina Healthcare, Inc., 3.875%, 05/15/32 (#) | 1,750 | 1,529,087 | ||||||
| Tenet Healthcare Corp.: | ||||||||
| 4.875%, 01/01/26 | 1,000 | 988,732 | ||||||
| 4.375%, 01/15/30 | 1,500 | 1,390,109 | ||||||
| 6,763,396 | ||||||||
| Hotels, Restaurants & Leisure | 8.0% | ||||||||
| 1011778 BC ULC, 3.875%, 01/15/28 (#) | 2,100 | 1,983,919 | ||||||
| Boyd Gaming Corp.: | ||||||||
| 4.750%, 12/01/27 | 850 | 817,786 | ||||||
| 4.750%, 06/15/31 (#) | 1,250 | 1,147,280 | ||||||
| Carnival Corp., 7.625%, 03/01/26 (#) | 1,500 | 1,527,121 | ||||||
| Cedar Fair LP, 5.375%, 04/15/27 | 1,550 | 1,516,520 | ||||||
| Hilton Domestic Operating Co., Inc., 3.625%, 02/15/32 (#) | 2,000 | 1,745,418 | ||||||
| International Game Technology PLC, 4.125%, 04/15/26 (#) | 1,500 | 1,457,895 | ||||||
| MGM Resorts International, 4.625%, 09/01/26 | 800 | 780,732 |
The accompanying notes are an integral part of these financial statements.
28 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US High Yield Portfolio (continued) | ||||||||
| Station Casinos LLC, 4.625%, 12/01/31 (#) | $ | 1,750 | $ | 1,577,930 | ||||
| Travel & Leisure Co., 4.500%, 12/01/29 (#) | 1,500 | 1,343,377 | ||||||
| 13,897,978 | ||||||||
| Household Durables | 0.9% | ||||||||
| Tempur Sealy International, Inc., 4.000%, 04/15/29 (#) | 1,750 | 1,580,584 | ||||||
| Household Products | 0.6% | ||||||||
| Energizer Holdings, Inc., 4.750%, 06/15/28 (#) | 1,200 | 1,109,373 | ||||||
| Independent Power & Renewable Electricity Producers | 1.8% | ||||||||
| Calpine Corp., 4.500%, 02/15/28 (#) | 1,500 | 1,426,725 | ||||||
| NextEra Energy Operating Partners LP, 4.500%, 09/15/27 (#) | 1,750 | 1,684,407 | ||||||
| 3,111,132 | ||||||||
| Interactive Media & Services | 0.8% | ||||||||
| Ziff Davis, Inc., 4.625%, 10/15/30 (#) | 1,500 | 1,376,145 | ||||||
| Machinery | 5.1% | ||||||||
| Allison Transmission, Inc., 4.750%, 10/01/27 (#) | 1,795 | 1,734,450 | ||||||
| Amsted Industries, Inc.: | ||||||||
| 5.625%, 07/01/27 (#) | 750 | 747,314 | ||||||
| 4.625%, 05/15/30 (#) | 1,000 | 915,220 | ||||||
| Mueller Water Products, Inc., 4.000%, 06/15/29 (#) | 2,000 | 1,821,998 | ||||||
| Terex Corp., 5.000%, 05/15/29 (#) | 2,000 | 1,885,000 | ||||||
| Vertiv Group Corp., 4.125%, 11/15/28 (#) | 1,750 | 1,641,884 | ||||||
| 8,745,866 |
The accompanying notes are an integral part of these financial statements.
Annual Report 29
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US High Yield Portfolio (continued) | ||||||||
| Media | 9.6% | ||||||||
| CCO Holdings LLC: | ||||||||
| 5.125%, 05/01/27 (#) | $ | 500 | $ | 483,085 | ||||
| 4.750%, 03/01/30 (#) | 1,500 | 1,370,647 | ||||||
| Lamar Media Corp., 3.625%, 01/15/31 | 1,500 | 1,332,750 | ||||||
| Nexstar Media, Inc., 5.625%, 07/15/27 (#) | 1,500 | 1,450,426 | ||||||
| Outfront Media Capital LLC, 5.000%, 08/15/27 (#) | 2,300 | 2,223,173 | ||||||
| Scripps Escrow II, Inc., 3.875%, 01/15/29 (#) | 1,500 | 1,326,645 | ||||||
| Sinclair Television Group, Inc., 5.125%, 02/15/27 (#) | 1,750 | 1,561,875 | ||||||
| Sirius XM Radio, Inc.: | ||||||||
| 5.000%, 08/01/27 (#) | 1,750 | 1,690,489 | ||||||
| 3.875%, 09/01/31 (#) | 1,000 | 855,486 | ||||||
| TEGNA, Inc., 5.000%, 09/15/29 | 1,750 | 1,603,368 | ||||||
| Univision Communications, Inc., 5.125%, 02/15/25 (#) | 461 | 459,294 | ||||||
| Videotron Ltd., 5.125%, 04/15/27 (#) | 500 | 492,500 | ||||||
| Virgin Media Secured Finance PLC, 4.500%, 08/15/30 (#) | 2,000 | 1,780,600 | ||||||
| 16,630,338 | ||||||||
| Metals & Mining | 1.8% | ||||||||
| FMG Resources August 2006 Pty. Ltd., 4.500%, 09/15/27 (#) | 1,750 | 1,681,372 | ||||||
| Novelis Corp., 4.750%, 01/30/30 (#) | 1,500 | 1,410,673 | ||||||
| 3,092,045 | ||||||||
| Mortgage REITs | 1.0% | ||||||||
| Starwood Property Trust, Inc., 3.625%, 07/15/26 (#) | 1,743 | 1,651,109 |
The accompanying notes are an integral part of these financial statements.
30 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US High Yield Portfolio (continued) | ||||||||
| Oil, Gas & Consumable Fuels | 8.0% | ||||||||
| Buckeye Partners LP, 4.500%, 03/01/28 (#) | $ | 1,500 | $ | 1,413,261 | ||||
| DT Midstream, Inc., 4.375%, 06/15/31 (#) | 1,350 | 1,217,746 | ||||||
| Hess Midstream Operations LP, 4.250%, 02/15/30 (#) | 1,850 | 1,702,000 | ||||||
| HF Sinclair Corp., 5.000%, 02/01/28 (#) | 2,000 | 1,939,611 | ||||||
| Range Resources Corp., 4.750%, 02/15/30 (#) | 1,750 | 1,617,682 | ||||||
| Southwestern Energy Co.: | ||||||||
| 5.700%, 01/23/25 | 1,800 | 1,792,831 | ||||||
| 4.750%, 02/01/32 | 250 | 231,303 | ||||||
| Sunoco LP/Sunoco Finance Corp., 4.500%, 04/30/30 | 2,000 | 1,851,625 | ||||||
| Tallgrass Energy Partners LP, 5.500%, 01/15/28 (#) | 1,250 | 1,181,261 | ||||||
| Transocean, Inc., 8.750%, 02/15/30 (#) | 950 | 992,522 | ||||||
| 13,939,842 | ||||||||
| Paper & Forest Products | 0.4% | ||||||||
| Smurfit Kappa Treasury Funding DAC, 7.500%, 11/20/25 | 750 | 769,551 | ||||||
| Passenger Airlines | 0.6% | ||||||||
| United Airlines Pass-Through Trust, Series 2012-1, Class A, 4.150%, 10/11/25 | 966 | 961,991 | ||||||
| Software | 1.1% | ||||||||
| Clarivate Science Holdings Corp., 3.875%, 07/01/28 (#) | 1,200 | 1,131,473 | ||||||
| NCR Voyix Corp., 5.125%, 04/15/29 (#) | 750 | 712,951 | ||||||
| 1,844,424 |
The accompanying notes are an integral part of these financial statements.
Annual Report 31
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US High Yield Portfolio (continued) | ||||||||
| Specialty Retail | 3.0% | ||||||||
| Asbury Automotive Group, Inc.: | ||||||||
| 4.500%, 03/01/28 | $ | 987 | $ | 937,403 | ||||
| 5.000%, 02/15/32 (#) | 750 | 681,602 | ||||||
| Fertitta Entertainment LLC: | ||||||||
| 4.625%, 01/15/29 (#) | 500 | 453,685 | ||||||
| 6.750%, 01/15/30 (#) | 750 | 658,502 | ||||||
| Group 1 Automotive, Inc., 4.000%, 08/15/28 (#) | 1,000 | 927,367 | ||||||
| Penske Automotive Group, Inc., 3.750%, 06/15/29 | 1,750 | 1,556,686 | ||||||
| 5,215,245 | ||||||||
| Technology Hardware, Storage & Peripherals | 2.2% | ||||||||
| Seagate HDD Cayman, 4.091%, 06/01/29 | 2,083 | 1,924,692 | ||||||
| Western Digital Corp., 4.750%, 02/15/26 | 2,000 | 1,962,037 | ||||||
| 3,886,729 | ||||||||
| Trading Companies & Distributors | 4.1% | ||||||||
| American Builders & Contractors Supply Co., Inc., 4.000%, 01/15/28 (#) | 1,100 | 1,040,905 | ||||||
| Avis Budget Car Rental LLC, 5.750%, 07/15/27 (#) | 2,000 | 1,939,249 | ||||||
| Herc Holdings, Inc., 5.500%, 07/15/27 (#) | 2,000 | 1,974,634 | ||||||
| Standard Industries, Inc., 3.375%, 01/15/31 (#) | 2,000 | 1,720,541 | ||||||
| United Rentals North America, Inc., 5.500%, 05/15/27 | 500 | 501,104 | ||||||
| 7,176,433 | ||||||||
| Total Corporate Bonds (Cost $173,145,386) | 163,030,454 |
The accompanying notes are an integral part of these financial statements.
32 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard US High Yield Portfolio (concluded) | ||||||||
| Short-Term Investments | 4.7% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $8,084,741) | 8,084,741 | $ | 8,084,741 | |||||
| Total Investments | 98.7% (Cost $181,230,127) | $ | 171,115,195 | ||||||
| Cash and Other Assets in Excess of Liabilities | 1.3% | 2,223,604 | |||||||
| Net Assets | 100.0% | $ | 173,338,799 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 33
The accompanying notes are an integral part of these financial statements.
34 Annual Report
| Description | Principal Amount (000) | Fair Value | ||||||
| Lazard US Short Duration Fixed Income Portfolio (concluded) | ||||||||
| Consumer Finance | 3.2% | ||||||||
| American Express Co., 2.500%, 07/30/24 | $ | 1,000 | $ | 982,366 | ||||
| Total Corporate Bonds (Cost $4,671,377) | 4,684,518 | |||||||
| Mortgage-Backed Securities | 2.1% | ||||||||
| Federal Home Loan Mortgage Corp. 4.250%, 08/14/26 (Cost $640,412) | 650 | 640,967 | ||||||
| U.S. Treasury Securities | 74.5% | ||||||||
| U.S. Treasury Notes: | ||||||||
| 5.000%, 10/31/25 | 5,760 | 5,825,700 | ||||||
| 4.250%, 12/31/25 | 6,085 | 6,083,812 | ||||||
| 2.375%, 04/30/26 | 4,845 | 4,656,310 | ||||||
| 4.375%, 12/15/26 | 6,015 | 6,073,740 | ||||||
| Total U.S. Treasury Securities (Cost $22,496,232) | 22,639,562 | |||||||
| Description | Shares | Fair Value | ||||||
| Short-Term Investments | 0.2% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $54,129) | 54,129 | $ | 54,129 | |||||
| Total Investments | 99.6% (Cost $30,067,814) | $ | 30,266,862 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.4% | 114,982 | |||||||
| Net Assets | 100.0% | $ | 30,381,844 |
The accompanying notes are an integral part of these financial statements.
Annual Report 35
The Lazard Funds, Inc. Notes to Portfolios of Investments
December 31, 2023
| (#) | Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers”. At December 31, 2023, these securities amounted to the percentage of net assets for each Portfolio as follows: |
| Portfolio | Percentage of Net Assets | |||||
| US High Yield | 70.5 | % | ||||
| US Short Duration Fixed Income | 7.4 | % | ||||
| (§) | Variable and floating rate securities are securities for which interest rate changes are based on changes in a designated base rate. The rates shown are those in effect on December 31, 2023. |
Security Abbreviations:
| REITs | — Real Estate Investment Trusts |
| SOFR | — Secured Overnight Financing Rate |
The accompanying notes are an integral part of these financial statements.
36 Annual Report
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Annual Report 37
The Lazard Funds, Inc. Statements of Assets and Liabilities
| December 31, 2023 | Lazard US Convertibles Portfolio | Lazard US High Yield Portfolio | |||||||||
| ASSETS | |||||||||||
| Investments in securities, at fair value | $ | 9,364,022 | $ | 171,115,195 | |||||||
| Receivables for: | |||||||||||
| Dividends and interest | 30,118 | 2,403,010 | |||||||||
| Capital stock sold | — | 1,404 | |||||||||
| Investments sold | 62,667 | — | |||||||||
| Cash collateral pledged for futures contracts | 5,600 | — | |||||||||
| Amount due from Investment Manager (Note 3) | 37,281 | — | |||||||||
| Variation margin on open futures contracts | 338 | — | |||||||||
| Total assets | 9,500,026 | 173,519,609 | |||||||||
| LIABILITIES | |||||||||||
| Payables for: | |||||||||||
| Management fees | — | 54,486 | |||||||||
| Accrued professional services | 45,835 | 28,808 | |||||||||
| Accrued custodian fees | 6,143 | 12,364 | |||||||||
| Accrued shareholders’ reports | 1,179 | 12,277 | |||||||||
| Accrued distribution fees | 35 | 479 | |||||||||
| Accrued directors’ fees | — | 127 | |||||||||
| Capital stock redeemed | — | 53,180 | |||||||||
| Distributions to shareholders | — | 8,944 | |||||||||
| Investments purchased | 152,503 | — | |||||||||
| Other accrued expenses and payables | 8,151 | 10,145 | |||||||||
| Total liabilities | 213,846 | 180,810 | |||||||||
| Net assets | $ | 9,286,180 | $ | 173,338,799 | |||||||
| NET ASSETS | |||||||||||
| Paid in capital | $ | 8,807,899 | $ | 206,949,304 | |||||||
| Distributable earnings (Accumulated loss) | 478,281 | (33,610,505 | ) | ||||||||
| Net assets | $ | 9,286,180 | $ | 173,338,799 | |||||||
The accompanying notes are an integral part of these financial statements.
38 Annual Report
| Lazard US Short Duration Fixed Income Portfolio | ||||
| $ | 30,266,862 | |||
| 147,795 | ||||
| — | ||||
| 12,175,635 | ||||
| — | ||||
| 32,199 | ||||
| — | ||||
| 42,622,491 | ||||
| — | ||||
| 25,827 | ||||
| 5,230 | ||||
| 3,860 | ||||
| — | ||||
| 68 | ||||
| 27,147 | ||||
| — | ||||
| 12,173,549 | ||||
| 4,966 | ||||
| 12,240,647 | ||||
| $ | 30,381,844 | |||
| $ | 33,327,440 | |||
| (2,945,596 | ) | |||
| $ | 30,381,844 | |||
Annual Report 39
| December 31, 2023 | Lazard US Convertibles Portfolio | Lazard US High Yield Portfolio | |||||||||
| Institutional Shares | |||||||||||
| Net assets | $ | 9,108,214 | $ | 170,290,004 | |||||||
| Shares of capital stock outstanding* | 855,258 | 9,501,245 | |||||||||
| Net asset value, offering and redemption price per share | $ | 10.65 | $ | 17.92 | |||||||
| Open Shares | |||||||||||
| Net assets | $ | 177,966 | $ | 3,037,709 | |||||||
| Shares of capital stock outstanding* | 16,707 | 168,715 | |||||||||
| Net asset value, offering and redemption price per share | $ | 10.65 | $ | 18.00 | |||||||
| R6 Shares | |||||||||||
| Net assets | — | $ | 11,086 | ||||||||
| Shares of capital stock outstanding* | — | 617 | † | ||||||||
| Net asset value, offering and redemption price per share* | — | $ | 17.98 | ||||||||
| Cost of investments in securities | $ | 8,842,401 | $ | 181,230,127 | |||||||
| * | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
| † | Shares value is rounded for presentation purposes. |
The accompanying notes are an integral part of these financial statements.
40 Annual Report
| Lazard US Short Duration Fixed Income Portfolio | ||||
| $ | 30,361,938 | |||
| 3,192,502 | ||||
| $ | 9.51 | |||
| $ | 19,906 | |||
| 2,091 | ||||
| $ | 9.52 | |||
| — | ||||
| — | ||||
| — | ||||
| $ | 30,067,814 | |||
Annual Report 41
The Lazard Funds, Inc. Statements of Operations
| For the Year Ended December 31, 2023 | Lazard US Convertibles Portfolio | Lazard US High Yield Portfolio | |||||||||
| Investment Income (Loss) | |||||||||||
| Income | |||||||||||
| Interest | $ | 214,502 | $ | 10,122,334 | |||||||
| Dividends | 52,754 | 286,497 | |||||||||
| Total investment income | 267,256 | 10,408,831 | |||||||||
| Expenses | |||||||||||
| Management fees (Note 3) | 48,530 | 1,155,504 | |||||||||
| Custodian fees | 36,139 | 100,941 | |||||||||
| Professional services | 90,405 | 65,245 | |||||||||
| Administration fees | 26,455 | 43,548 | |||||||||
| Shareholders’ reports | 10,311 | 29,561 | |||||||||
| Registration fees | 26,949 | 27,676 | |||||||||
| Shareholders’ services | 5,949 | 24,297 | |||||||||
| Directors’ fees and expenses | 5,446 | 20,154 | |||||||||
| Distribution fees (Open Shares) | 392 | 7,445 | |||||||||
| Amortization of offering costs (Note 2(i)) | 121,284 | — | |||||||||
| Organization expenses (Note 2(i)) | 3,830 | — | |||||||||
| Other | 2,149 | 10,494 | |||||||||
| Total gross expenses | 377,839 | 1,484,865 | |||||||||
| Management fees waived and expenses reimbursed | (316,699 | ) | (320,400 | ) | |||||||
| Total net expenses | 61,140 | 1,164,465 | |||||||||
| Net investment income (loss) | 206,116 | 9,244,366 | |||||||||
| Net Realized and Unrealized Gain (Loss) | |||||||||||
| Net realized gain (loss) on: | |||||||||||
| Investments | 76,025 | (9,406,959 | ) | ||||||||
| Futures contracts | 6,678 | — | |||||||||
| Total net realized gain (loss) | 82,703 | (9,406,959 | ) | ||||||||
| Net change in unrealized appreciation (depreciation) on: | |||||||||||
| Investments | 501,424 | 18,383,423 | |||||||||
| Futures contracts | 10,807 | — | |||||||||
| Total net change in unrealized appreciation (depreciation) | 512,231 | 18,383,423 | |||||||||
| Net realized and unrealized gain (loss) | 594,934 | 8,976,464 | |||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 801,050 | $ | 18,220,830 | |||||||
The accompanying notes are an integral part of these financial statements.
42 Annual Report
| Lazard US Short Duration Fixed Income Portfolio | ||||
| $ | 1,587,142 | |||
| — | ||||
| 1,587,142 | ||||
| 107,698 | ||||
| 32,637 | ||||
| 49,219 | ||||
| 22,671 | ||||
| 13,540 | ||||
| 36,832 | ||||
| 12,834 | ||||
| 8,493 | ||||
| 45 | ||||
| — | ||||
| — | ||||
| 6,366 | ||||
| 290,335 | ||||
| (117,770 | ) | |||
| 172,565 | ||||
| 1,414,577 | ||||
| (1,260,686 | ) | |||
| — | ||||
| (1,260,686 | ) | |||
| 1,463,926 | ||||
| — | ||||
| 1,463,926 | ||||
| 203,240 | ||||
| $ | 1,617,817 | |||
Annual Report 43
The Lazard Funds, Inc. Statements of Changes in Net Assets
| Lazard US Convertibles Portfolio | |||||||||
| Year Ended December 31, 2023 | Period Ended December 31, 2022 (a) | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 206,116 | $ | (207 | ) | ||||
| Net realized gain (loss) | 82,703 | — | |||||||
| Net change in unrealized appreciation (depreciation) | 512,231 | 20,197 | |||||||
| Net increase (decrease) in net assets resulting from operations | 801,050 | 19,990 | |||||||
| Distributions to shareholders (Note 2(h)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (336,860 | ) | — | ||||||
| Open Shares | (6,106 | ) | — | ||||||
| R6 Shares | — | — | |||||||
| Net decrease in net assets resulting from distributions | (342,966 | ) | — | ||||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 3,461,876 | 4,900,000 | |||||||
| Open Shares | 66,678 | 100,000 | |||||||
| R6 Shares | — | — | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 336,860 | — | |||||||
| Open Shares | 6,106 | — | |||||||
| R6 Shares | — | — | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (60,050 | ) | — | ||||||
| Open Shares | (3,364 | ) | — | ||||||
| Net increase (decrease) in net assets from capital stock transactions | 3,808,106 | 5,000,000 | |||||||
| Total increase (decrease) in net assets | 4,266,190 | 5,019,990 | |||||||
| Net assets at beginning of period | 5,019,990 | — | |||||||
| Net assets at end of period | $ | 9,286,180 | $ | 5,019,990 | |||||
| (a) | The Portfolio commenced operations on December 30, 2022. |
The accompanying notes are an integral part of these financial statements.
44 Annual Report
| Lazard US High Yield Portfolio | Lazard US Short Duration Fixed Income Portfolio | ||||||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||||||||
| $ | 9,244,366 | $ | 10,552,279 | $ | 1,414,577 | $ | 874,532 | ||||||||||||
| (9,406,959 | ) | (5,353,386 | ) | (1,260,686 | ) | (1,716,118 | ) | ||||||||||||
| 18,383,423 | (34,694,517 | ) | 1,463,926 | (1,143,722 | ) | ||||||||||||||
| 18,220,830 | (29,495,624 | ) | 1,617,817 | (1,985,308 | ) | ||||||||||||||
| (9,199,641 | ) | (10,508,568 | ) | (1,411,919 | ) | (876,024 | ) | ||||||||||||
| (125,017 | ) | (122,060 | ) | (577 | ) | (180 | ) | ||||||||||||
| (398 | ) | (48 | ) | — | — | ||||||||||||||
| (9,325,056 | ) | (10,630,676 | ) | (1,412,496 | ) | (876,204 | ) | ||||||||||||
| 26,230,303 | 22,312,710 | 656,347 | 1,477,636 | ||||||||||||||||
| 980,467 | 2,265,403 | 3,353 | 3,020 | ||||||||||||||||
| 9,000 | — | — | — | ||||||||||||||||
| 9,100,919 | 10,233,107 | 1,377,893 | 834,132 | ||||||||||||||||
| 107,031 | 105,656 | 577 | 179 | ||||||||||||||||
| 398 | 48 | — | — | ||||||||||||||||
| (96,653,345 | ) | (69,521,576 | ) | (30,451,361 | ) | (20,124,194 | ) | ||||||||||||
| (1,151,214 | ) | (2,392,556 | ) | (789 | ) | (8,361 | ) | ||||||||||||
| (61,376,441 | ) | (36,997,208 | ) | (28,413,980 | ) | (17,817,588 | ) | ||||||||||||
| (52,480,667 | ) | (77,123,508 | ) | (28,208,659 | ) | (20,679,100 | ) | ||||||||||||
| 225,819,466 | 302,942,974 | 58,590,503 | 79,269,603 | ||||||||||||||||
| $ | 173,338,799 | $ | 225,819,466 | $ | 30,381,844 | $ | 58,590,503 | ||||||||||||
Annual Report 45
| Lazard US Convertibles Portfolio | |||||||||
| Year Ended December 31, 2023 | Period Ended December 31, 2022 (a) | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | 490,000 | — | |||||||
| Shares sold | 339,175 | 490,000 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 31,885 | — | |||||||
| Shares redeemed | (5,802 | ) | — | ||||||
| Net increase (decrease) | 365,258 | 490,000 | |||||||
| Shares outstanding at end of period | 855,258 | 490,000 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 10,000 | — | |||||||
| Shares sold | 6,445 | 10,000 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 577 | — | |||||||
| Shares redeemed | (315 | ) | — | ||||||
| Net increase (decrease) | 6,707 | 10,000 | |||||||
| Shares outstanding at end of period | 16,707 | 10,000 | |||||||
| R6 Shares | |||||||||
| Shares outstanding at beginning of period | — | — | |||||||
| Shares sold | — | — | |||||||
| Shares issued to shareholders from reinvestment of distributions | — | — | |||||||
| Net increase (decrease) | — | — | |||||||
| Shares outstanding at end of period | — | — | |||||||
| (a) | The Portfolio commenced operations on December 30, 2022. |
The accompanying notes are an integral part of these financial statements.
46 Annual Report
| Lazard US High Yield Portfolio | Lazard US Short Duration Fixed Income Portfolio | ||||||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||||||||||
| 13,164,575 | 15,258,202 | 6,203,400 | 8,058,991 | ||||||||||||||||
| 1,527,640 | 1,268,115 | 69,565 | 152,656 | ||||||||||||||||
| 528,878 | 581,324 | 145,976 | 87,541 | ||||||||||||||||
| (5,719,848 | ) | (3,943,066 | ) | (3,226,439 | ) | (2,095,788 | ) | ||||||||||||
| (3,663,330 | ) | (2,093,627 | ) | (3,010,898 | ) | (1,855,591 | ) | ||||||||||||
| 9,501,245 | 13,164,575 | 3,192,502 | 6,203,400 | ||||||||||||||||
| 172,536 | 173,575 | 1,757 | 2,279 | ||||||||||||||||
| 56,835 | 127,720 | 356 | 314 | ||||||||||||||||
| 6,187 | 5,993 | 61 | 19 | ||||||||||||||||
| (66,843 | ) | (134,752 | ) | (83 | ) | (855 | ) | ||||||||||||
| (3,821 | ) | (1,039 | ) | 334 | (522 | ) | |||||||||||||
| 168,715 | 172,536 | 2,091 | 1,757 | ||||||||||||||||
| 66 | 63 | — | — | ||||||||||||||||
| 528 | — | — | — | ||||||||||||||||
| 23 | 3 | — | — | ||||||||||||||||
| 551 | 3 | — | — | ||||||||||||||||
| 617 | 66 | — | — | ||||||||||||||||
Annual Report 47
The Lazard Funds, Inc. Financial Highlights
LAZARD US CONVERTIBLES PORTFOLIO
| Selected data for a share of capital stock outstanding throughout each period | Year Ended 12/31/23 | For the period 12/30/22* to 12/31/22 | ||||||
| Institutional Shares | ||||||||
| Net asset value, beginning of period | $10.04 | $10.00 | ||||||
| Income (Loss) from investment operations: | ||||||||
| Net investment income (loss) (a) | 0.27 | — | (b) | |||||
| Net realized and unrealized gain (loss) | 0.74 | 0.04 | ||||||
| Total from investment operations | 1.01 | 0.04 | ||||||
| Less distributions from: | ||||||||
| Net investment income | (0.26 | ) | — | |||||
| Net realized gains | (0.14 | ) | — | |||||
| Total distributions | (0.40 | ) | — | |||||
| Net asset value, end of period | $10.65 | $10.04 | ||||||
| Total Return (c) | 10.18 | % | 0.40 | % | ||||
| Ratios and Supplemental Data: | ||||||||
| Net assets, end of period (in thousands) | $9,108 | $4,920 | ||||||
| Ratios to average net assets (d): | ||||||||
| Net expenses | 0.75 | % | 0.75 | % | ||||
| Gross expenses | 4.59 | % | 3.08 | % | ||||
| Net investment income (loss) | 2.55 | % | -0.75 | % | ||||
| Portfolio turnover rate | 22 | % | 0 | % | ||||
| Open Shares | ||||||||
| Net asset value, beginning of period | $10.04 | $10.00 | ||||||
| Income (Loss) from investment operations: | ||||||||
| Net investment income (loss) (a) | 0.24 | — | (b) | |||||
| Net realized and unrealized gain (loss) | 0.75 | 0.04 | ||||||
| Total from investment operations | 0.99 | 0.04 | ||||||
| Less distributions from: | ||||||||
| Net investment income | (0.24 | ) | — | |||||
| Net realized gains | (0.14 | ) | — | |||||
| Total distributions | (0.38 | ) | — | |||||
| Net asset value, end of period | $10.65 | $10.04 | ||||||
| Total Return (c) | 9.91 | % | 0.40 | % | ||||
| Ratios and Supplemental Data: | ||||||||
| Net assets, end of period (in thousands) | $ 178 | $ 100 | ||||||
| Ratios to average net assets (d) : | ||||||||
| Net expenses | 1.00 | % | 1.00 | % | ||||
| Gross expenses | 6.63 | % | 18.24 | % | ||||
| Net investment income (loss) | 2.32 | % | -1.00 | % | ||||
| Portfolio turnover rate | 22 | % | 0 | % | ||||
| * | The Portfolio commenced operations on December 30, 2022. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Amount is less than $0.01 per share. |
| (c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (d) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
48 Annual Report
LAZARD US HIGH YIELD PORTFOLIO
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | * | 12/31/19 | * | ||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 16.93 | $ | 19.63 | $ | 19.80 | $ | 19.68 | $ | 18.16 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.76 | 0.72 | 0.72 | 0.80 | 0.88 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 1.00 | (2.69 | ) | (0.17 | ) | 0.13 | 1.52 | ||||||||||||||
| Total from investment operations | 1.76 | (1.97 | ) | 0.55 | 0.93 | 2.40 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.77 | ) | (0.73 | ) | (0.72 | ) | (0.81 | ) | (0.88 | ) | |||||||||||
| Total distributions | (0.77 | ) | (0.73 | ) | (0.72 | ) | (0.81 | ) | (0.88 | ) | |||||||||||
| Net asset value, end of period | $ | 17.92 | $ | 16.93 | $ | 19.63 | $ | 19.80 | $ | 19.68 | |||||||||||
| Total Return (b) | 10.65 | % | -10.11 | % | 2.86 | % | 4.96 | % | 13.34 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 170,290 | $ | 222,884 | $ | 299,518 | $ | 298,636 | $ | 297,219 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | |||||||||||
| Gross expenses | 0.70 | % | 0.70 | % | 0.66 | % | 0.67 | % | 0.67 | % | |||||||||||
| Net investment income (loss) | 4.40 | % | 4.06 | % | 3.64 | % | 4.17 | % | 4.47 | % | |||||||||||
| Portfolio turnover rate | 26 | % | 7 | % | 30 | % | 26 | % | 21 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 49
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | * | 12/31/19 | * | ||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 17.01 | $ | 19.72 | $ | 19.90 | $ | 19.76 | $ | 18.28 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.72 | 0.68 | 0.67 | 0.75 | 0.80 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 1.00 | (2.70 | ) | (0.17 | ) | 0.15 | 1.48 | ||||||||||||||
| Total from investment operations | 1.72 | (2.02 | ) | 0.50 | 0.90 | 2.28 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.73 | ) | (0.69 | ) | (0.68 | ) | (0.76 | ) | (0.80 | ) | |||||||||||
| Total distributions | (0.73 | ) | (0.69 | ) | (0.68 | ) | (0.76 | ) | (0.80 | ) | |||||||||||
| Net asset value, end of period | $ | 18.00 | $ | 17.01 | $ | 19.72 | $ | 19.90 | $ | 19.76 | |||||||||||
| Total Return (b) | 10.35 | % | -10.32 | % | 2.55 | % | 4.80 | % | 12.74 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 3,038 | $ | 2,935 | $ | 3,423 | $ | 3,733 | $ | 4,170 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.80 | % | 0.80 | % | 0.80 | % | 0.80 | % | 0.83 | % | |||||||||||
| Gross expenses | 1.08 | % | 1.06 | % | 1.00 | % | 1.03 | % | 1.19 | % | |||||||||||
| Net investment income (loss) | 4.16 | % | 3.81 | % | 3.39 | % | 3.94 | % | 4.18 | % | |||||||||||
| Portfolio turnover rate | 26 | % | 7 | % | 30 | % | 26 | % | 21 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
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| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | * | 12/31/19 | * | ||||||||||||||
| R6 Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 16.99 | $ | 19.69 | $ | 19.88 | $ | 19.76 | $ | 18.68 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.77 | 0.77 | 0.73 | 0.81 | 0.92 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.99 | (2.72 | ) | (0.18 | ) | 0.11 | 1.04 | ||||||||||||||
| Total from investment operations | 1.76 | (1.95 | ) | 0.55 | 0.92 | 1.96 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.77 | ) | (0.75 | ) | (0.74 | ) | (0.80 | ) | (0.88 | ) | |||||||||||
| Total distributions | (0.77 | ) | (0.75 | ) | (0.74 | ) | (0.80 | ) | (0.88 | ) | |||||||||||
| Net asset value, end of period | $ | 17.98 | $ | 16.99 | $ | 19.69 | $ | 19.88 | $ | 19.76 | |||||||||||
| Total Return (b) | 10.65 | % | -9.98 | % | 2.80 | % | 4.89 | % | 10.67 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 11 | $ | 1 | $ | 1 | $ | 1 | $ | 1 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | 0.55 | % | |||||||||||
| Gross expenses | 38.30 | % | 241.56 | % | 231.95 | % | 256.05 | % | 858.55 | % | |||||||||||
| Net investment income (loss) | 4.47 | % | 4.30 | % | 3.66 | % | 4.22 | % | 4.55 | % | |||||||||||
| Portfolio turnover rate | 26 | % | 7 | % | 30 | % | 26 | % | 21 | % | |||||||||||
| * | On November 17, 2020, the Portfolio effected a 1:4 reverse share split. All per share data prior to November 17, 2020 has been adjusted to reflect the reverse share split. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 51
LAZARD US SHORT DURATION FIXED INCOME PORTFOLIO
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.44 | $ | 9.83 | $ | 9.89 | $ | 9.77 | $ | 9.70 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.31 | 0.12 | 0.02 | 0.12 | 0.21 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.08 | (0.38 | ) | (0.06 | ) | 0.12 | 0.07 | ||||||||||||||
| Total from investment operations | 0.39 | (0.26 | ) | (0.04 | ) | 0.24 | 0.28 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.32 | ) | (0.13 | ) | (0.02 | ) | (0.12 | ) | (0.20 | ) | |||||||||||
| Return of capital | — | — | — | — | (0.01 | ) | |||||||||||||||
| Total distributions | (0.32 | ) | (0.13 | ) | (0.02 | ) | (0.12 | ) | (0.21 | ) | |||||||||||
| Net asset value, end of period | $ | 9.51 | $ | 9.44 | $ | 9.83 | $ | 9.89 | $ | 9.77 | |||||||||||
| Total Return (b) | 4.26 | % | -2.68 | % | -0.39 | % | 2.46 | % | 2.93 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 30,362 | $ | 58,574 | $ | 79,247 | $ | 87,746 | $ | 96,096 | |||||||||||
| Ratios to average net assets : | |||||||||||||||||||||
| Net expenses | 0.40 | % | 0.40 | % | 0.36 | % | 0.40 | % | 0.40 | % | |||||||||||
| Gross expenses | 0.66 | % | 0.51 | % | 0.48 | % | 0.47 | % | 0.45 | % | |||||||||||
| Net investment income (loss) | 3.28 | % | 1.28 | % | 0.22 | % | 1.21 | % | 2.18 | % | |||||||||||
| Portfolio turnover rate | 259 | % | 135 | % | 100 | % | 97 | % | 175 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
52 Annual Report
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.45 | $ | 9.84 | $ | 9.90 | $ | 9.78 | $ | 9.71 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.31 | 0.10 | 0.01 | 0.09 | 0.19 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.06 | (0.38 | ) | (0.06 | ) | 0.12 | 0.06 | ||||||||||||||
| Total from investment operations | 0.37 | (0.28 | ) | (0.05 | ) | 0.21 | 0.25 | ||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.30 | ) | (0.11 | ) | (0.01 | ) | (0.09 | ) | (0.17 | ) | |||||||||||
| Return of capital | — | — | — | — | (0.01 | ) | |||||||||||||||
| Total distributions | (0.30 | ) | (0.11 | ) | (0.01 | ) | (0.09 | ) | (0.18 | ) | |||||||||||
| Net asset value, end of period | $ | 9.52 | $ | 9.45 | $ | 9.84 | $ | 9.90 | $ | 9.78 | |||||||||||
| Total Return (b) | 3.98 | % | -2.89 | % | -0.50 | % | 2.20 | % | 2.64 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 20 | $ | 17 | $ | 22 | $ | 29 | $ | 16 | |||||||||||
| Ratios to average net assets : | |||||||||||||||||||||
| Net expenses | 0.65 | % | 0.62 | % | 0.48 | % | 0.65 | % | 0.69 | % | |||||||||||
| Gross expenses | 29.63 | % | 28.11 | % | 18.10 | % | 14.74 | % | 51.53 | % | |||||||||||
| Net investment income (loss) | 3.24 | % | 1.06 | % | 0.12 | % | 0.96 | % | 1.91 | % | |||||||||||
| Portfolio turnover rate | 259 | % | 135 | % | 100 | % | 97 | % | 175 | % | |||||||||||
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 53
The Lazard Funds, Inc. Notes to Financial Statements
December 31, 2023
1. Organization
The Lazard Funds, Inc. was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of December 31, 2023, the Fund was comprised of twenty-seven no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of the Lazard US Convertibles Portfolio (“US Convertibles”), the Lazard US High Yield Portfolio (formerly the Lazard US Corporate Income Portfolio, “High Yield”), and the Lazard US Short Duration Fixed Income Portfolio (“US Short Duration Fixed Income”). The financial statements of the other twenty-four Portfolios are presented separately.
The Portfolios are operated as “diversified” funds, as defined in the 1940 Act.
Each Portfolio currently offers Institutional Shares and Open Shares, and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum investment requirements; eligibility requirements for R6 Shares; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Fund’s prospectus).
2. Significant Accounting Policies
The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in accordance with Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:
(a) Valuation of Investments—Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by independent pricing services which are based on, among other things, trading in securities with similar characteristics, brokers’ quotations and/or a matrix system which considers such factors as other security prices, yields and maturities. Equity securities traded on a securities exchange or
54 Annual Report
market, including exchange-traded option contracts, futures contracts, rights and warrants, and exchange-traded funds, are valued at the last reported sales price (for US listed equity securities) or the closing price (for non-US listed equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the Nasdaq, the Nasdaq Official Closing Price. Over the counter swap agreements are valued by an independent pricing service and centrally cleared swaps are valued at the last reported sale on the clearing exchange. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s net asset value (“NAV”) per share.
Trading on certain non-US securities exchanges or markets, such as those in Europe and Asia, ordinarily may be completed before the close of business on each business day in New York (i.e., a day on which the New York Stock Exchange (the “NYSE”) is open). In addition, securities in non-US countries, may not trade on all business days in New York and on which the NAV of a Portfolio is calculated.
Events occurring after the close of trading on foreign exchanges may affect the fair value of foreign securities as of the close of regular trading on the NYSE, when the Portfolios’ NAVs are calculated. When valuing foreign equity securities, the Portfolios use an independent pricing service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments, which have a strong correlation to the fair which have a strong correlation to the fair-valued securities.
The Board has designated the Investment Manager to perform fair value determinations pursuant to Rule 2a-5 under the 1940 Act. The Investment Manager has created a Valuation Sub-Committee of the Funds’ Valuation and Liquidity Committee, which may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities,
Annual Report 55
observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio management team also will be considered.
Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.
(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Interest income is accrued daily. A Portfolio amortizes premiums and accretes discounts on fixed-income securities using the effective yield method and mortgage-backed securities using the level yield method.
A Portfolio may be subject to taxes imposed by non-US countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized and/or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income earned or capital gains (realized and/or unrealized) from the applicable portfolio securities.
(c) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Fund are maintained in US dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.
The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments.
56 Annual Report
A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Daily fluctuations in the value of forward currency contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, the Portfolio records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed. Net realized gain (loss) on foreign currency transactions and forward currency contracts represent net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency translations reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.
During the year ended December 31, 2023, none of the Portfolios traded in forward currency contracts.
(d) Futures Contracts—Futures contracts are purchased or sold to gain exposure to, or manage exposure from, changes in the value of equity securities or foreign currencies and changes in interest rates.
Futures contracts are exchange-traded agreements between a Portfolio and a counter-party to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, a Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract.
Annual Report 57
Amounts pledged, which are considered restricted, are included in cash collateral pledged for futures contracts in the Statement of Assets and Liabilities.
Securities may be deposited as initial margin. If applicable, any cash deposited and held on margin is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, a Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as receivables (or payables) for variation margin on open futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount of the contract at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
During the year ended December 31, 2023, US Convertibles traded in futures contracts.
(e) Options Transactions—Put and call options purchased are accounted for in the same manner as portfolio securities and other assets. Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. When a Portfolio writes an option, the premium received by the Portfolio is recorded as a liability and is subsequently adjusted to the current market value of the option written. When a Portfolio writes a call option, such option is typically “covered,” meaning that it holds the underlying instrument subject to being called by the option counterparty. When the Portfolio writes a put option, cash is segregated in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash collateral in the Statement of Assets and Liabilities. If a Portfolio writes an option, it bears the market risk of an
58 Annual Report
unfavorable change in the price of the security underlying the written option. The risk of loss is unlimited for uncovered written call options. For uncovered written put options, the risk of loss is limited to the difference between the strike price of the option and the premiums received upon writing the option.
During the year ended December 31, 2023, none of the Portfolios traded in options transactions.
(f) Swap Agreements—Interest rate swap agreements involve the exchange by a Portfolio with another party of their respective commitments to pay or receive interest with respect to the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap,” (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor,” (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the counterparty may terminate the swap transaction in whole at zero cost by a predetermined date and time prior to the maturity date, (v) spread locks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different money markets. The change in value, if any, on swap agreements is recorded as unrealized appreciation (depreciation) on swap agreements in a Portfolio’s accompanying Statement of Assets and Liabilities. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreements in a Portfolio’s accompanying Statement of Operations, in addition to any realized gain (loss) recorded upon the termination of swap agreements.
Annual Report 59
Upon entering into a centrally cleared swap, the Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Portfolio of Investments and cash deposited is shown as cash collateral for swaps in the Statement of Assets and Liabilities. On these transactions, the Portfolio agrees to receive from or pay to the broker variation margin. Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statement of Operations.
During the year ended December 31, 2023, none of the Portfolios traded in swap agreements.
(g) Federal Income Taxes—The Fund’s policy is for each Portfolio to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.
At December 31, 2023, the following Portfolios had unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains with no expiration date as follows:
| Portfolio | Short-Term | Long-Term | ||||||
| US High Yield | $ | (5,106,888 | ) | $ | (18,255,751 | ) | ||
| US Short Duration Fixed Income | (2,503,915 | ) | (632,745 | ) | ||||
60 Annual Report
Under current tax law, post-October capital losses or certain late-year ordinary losses, as defined by the Code, within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the tax year ended December 31, 2023, the following Portfolios elected to defer such losses as follows:
| Portfolio | Post-October Capital Loss Deferral | Late-Year Ordinary Loss Deferral | ||||||
| US Convertibles | $ | 26,460 | $ | — | ||||
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 Convertibles | $ | 8,859,281 | $ | 804,394 | $ | 299,653 | $ | 504,741 | ||||||||
| US High Yield | 181,374,803 | 648,041 | 10,907,649 | (10,259,608 | ) | |||||||||||
| US Short Duration Fixed Income | 30,069,000 | 221,055 | 23,193 | 197,862 | ||||||||||||
Management has analyzed the Portfolios’ tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. Each Portfolio files a US federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
(h) Dividends and Distributions—For US High Yield and US Short Duration Fixed Income, income dividends are normally declared each business day and paid monthly. For US Convertibles, income dividends are declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and
Annual Report 61
distribute these amounts, at least annually, to shareholders, but may be distributed more frequently in connection with income distributions. Differences in per share distributions, by class, are generally due to differences in class specific expenses.
Income and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency and fixed-income transactions, distribution redesignations, certain fixed-income securities and expenses, derivatives, wash sales, return of capital distributions, capital loss carryforwards, deemed dividends outstanding, currency straddles and paydown gain/loss.
The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:
| Portfolio | Paid in Capital | Distributable Earnings (Accumulated Loss) | ||||||
| US Short Duration Fixed Income | $(3,626 | ) | $3,626 | |||||
The tax character of dividends and distributions paid during the years ended December 31, were as follows:
| Ordinary Income | Long-Term Capital Gain | ||||||||||||||||
| Portfolio | 2023 | 2022 | 2023 | 2022 | |||||||||||||
| US Convertibles | $ | 342,966 | $ | — | $— | $— | |||||||||||
| US High Yield | 9,325,056 | 10,630,676 | — | — | |||||||||||||
| US Short Duration Fixed Income | 1,412,496 | 876,204 | — | — | |||||||||||||
At December 31, 2023, the components of distributable earnings (accumulated loss), on a tax basis, were as follows:
| Portfolio | Undistributed Ordinary Income (Deferred Ordinary Losses) | Undistributed Long-Term Capital Gain (Deferred Capital Losses) | Net Unrealized Appreciation (Depreciation) | ||||||||||
| US Convertibles | $ | — | $ | (26,460 | ) | $ | 504,741 | ||||||
| US High Yield | 11,742 | (23,362,639 | ) | (10,259,608 | ) | ||||||||
| US Short Duration Fixed Income | — | (3,136,660 | ) | 191,064 | |||||||||
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(i) Offering and Organizational Costs—Costs incurred by the Fund in connection with the offering of shares of a new Portfolio or share class of a Portfolio are deferred and amortized on a straight line basis over a twelve-month period from the date of commencement of operations of the Portfolio or share class. The Investment Manager will generally pay for any offering costs incurred by a new Portfolio and be reimbursed by that Portfolio within the amortization period. Organizational costs are expensed as incurred.
(j) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc., and Lazard Global Total Return and Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios primarily on the basis of relative net assets. The Portfolios accrue distribution and service (12b-1) fees to Open Shares. Each Portfolio’s income, expenses (other than class specific expenses) and realized and unrealized gains and losses are allocated proportionally each day between its classes based upon the relative net assets of each class.
(k) Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates.
(l) Net Asset Value—The NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price
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its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. The NAV per share of a class is determined by dividing the value of the total assets of the Portfolio represented by such class, less all liabilities, by the total number of Portfolio shares of such class outstanding.
3. Investment Management, Administration, Custody, Distribution and Transfer Agency Agreements
The Fund, on behalf of the Portfolios, has entered into a management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager manages the investment operations of each Portfolio and the assets of each Portfolio, including the purchase, retention and disposition thereof, in accordance with the Portfolios’ investment objectives, policies, and restrictions, and provides the Portfolios with administrative, operational and compliance assistance services. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:
| Portfolio | Annual Rate | ||||
| US Convertibles | 0.60 | % | |||
| US High Yield | 0.55 | ||||
| US Short Duration Fixed Income | 0.25 | ||||
The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse a Portfolio until May 1, 2024 (or such other date as indicated below) if the aggregate direct expenses of each Portfolio, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of an “Acquired Fund” (as defined in Form N-1A), fees and expenses related to filing foreign tax reclaims and extraordinary expenses, exceed an applicable percentage of the value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name in the table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be
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made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expenses.
| Portfolio | Institutional Shares | Open Shares | R6 Shares | ||||||||||
| US Convertibles (a) | 0.75 | % | 1.00 | % | N/A | % | |||||||
| US High Yield (b) | 0.55 | 0.80 | 0.55 | ||||||||||
| US Short Duration Fixed Income (c) | 0.40 | 0.65 | N/A | ||||||||||
| (a) | This agreement will continue in effect until December 30, 2024. |
| (b) | This agreement will continue in effect until May 1, 2033 for R6 Shares. |
| (c) | This agreement will continue in effect until May 1, 2033 for Open Shares. |
In addition, until May 1, 2024, to the extent the “Total Annual Fund Operating Expenses” (as used in Form N-1A) of the R6 Shares of a Portfolio exceed the Total Annual Fund Operating Expenses of the Portfolio’s Institutional Shares (in each case, not including management fees, custodial fees or other expenses related to the management of the Portfolio’s assets), the Investment Manager will bear the expenses of the R6 Shares in the amount of such excess. Further, the Investment Manager will bear the daily expenses incurred in excess of any income produced for US Short Duration Fixed Income.
During the year ended December 31, 2023, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:
| Institutional Shares | Open Shares | ||||||||||||||||
| Portfolio | Management Fees Waived | Expenses Reimbursed | Management Fees Waived | Expenses Reimbursed | |||||||||||||
| US Convertibles | $ | 47,588 | $ | 260,219 | $ | 942 | $ | 7,950 | |||||||||
| US High Yield | 308,611 | — | 8,440 | — | |||||||||||||
| US Short Duration Fixed Income | 107,653 | 4,884 | 45 | 5,188 | |||||||||||||
| R6 Shares | |||||||||
| Portfolio | Management Fees Waived | Expenses Reimbursed | |||||||
| US High Yield | $49 | $3,300 | |||||||
The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.
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State Street serves as the Fund’s custodian and provides the Fund with certain administrative services.
The Fund has a distribution agreement with Lazard Asset Management Securities LLC (the “Distributor”), a wholly-owned subsidiary of the Investment Manager, to serve as the distributor for shares of each Portfolio. The Distributor bears, amongst other expenses, the cost of preparing and distributing materials used by the Distributor in connection with its offering Portfolio shares and other advertising and promotional expenses.
Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net assets of its Open Shares, for certain distribution activities and providing services to holders of the Portfolio’s Open Shares. The Distributor may make payments to third parties such as financial institutions, securities dealers and other industry professionals in respect of these services.
SS&C GIDS is the Fund’s transfer agent and dividend disbursing agent.
4. Directors’ Compensation
Certain Directors of the Fund are officers of the Investment Manager. The annual compensation in 2023 for each Director who is not an affiliated person of the Investment Manager or any of its affiliates that is payable by all of the funds in the Lazard Fund Complex, is comprised of: (1) an annual fee of $245,000, (2) an additional annual fee of $35,000 to the lead Independent Director, and (3) an additional annual fee of $25,000 to the Audit Committee Chair. The Independent Directors (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund) also may be paid additional compensation for participation on ad hoc committees or other work performed on behalf of the Board. Effective January 1, 2024, the annual compensation for each Director who is not an affiliated person of the Investment Manager or any of its affiliates that is payable by all of the funds in the Lazard Fund Complex, is comprised of:
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(1) an annual fee of $252,500, (2) an additional annual fee of $35,000 to the lead Independent Director, and (3) an additional annual fee of $25,000 to the Audit Committee Chair. The Independent Directors are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings or incurred in connection with work performed on behalf of Board. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees and expenses are allocated among the active portfolios in the Lazard Fund Complex at a rate of $5,000 per active portfolio with the remainder allocated among the active portfolios on the basis of relative net assets. The Statements of Operations show the Independent Directors’ fees and expenses paid by each Portfolio.
5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2023 were as follows:
| Portfolio | Purchases | Sales | |||||||
| US Convertibles | $ 5,614,346 | $ 1,705,656 | |||||||
| US High Yield | 25,982,996 | 76,757,580 | |||||||
| US Short Duration Fixed Income | 7,202,931 | 8,148,059 | |||||||
| US Government and Treasury Securities | |||||||||
| Portfolio | Purchases | Sales | |||||||
| US High Yield | $24,807,500 | $ 24,638,750 | |||||||
| US Short Duration Fixed Income | 88,513,669 | 116,140,494 | |||||||
At December 31, 2023, the Investment Manager owned 59.56% of the outstanding shares of US Convertibles.
For the year ended December 31, 2023, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.
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6. Line of Credit
The Fund has a $100 million committed line of credit pursuant to an Amended and Restated Loan Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at 1.00% plus the “Applicable Rate,” which is the higher of (a) the Federal Funds Rate plus 10 basis points and (b) the Overnight Bank Funding Rate (OBFR) plus 10 basis points, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line amount. During the year ended December 31, 2023, none of the Portfolios had borrowings under the Agreement.
Management believes that the fair value of the liabilities under the Agreement is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with the Applicable Rate. A Portfolio’s outstanding balance under the Agreement, if any, would be categorized as Level 2.
7. Investment Risks
Not all risks described below apply to all Portfolios, or may not apply to the same degree for one or more Portfolios compared to one or more other Portfolios. In addition, not all risks applicable to an investment in a Portfolio are described below. Please see the current summary prospectus for the relevant Portfolio(s) or a current Portfolio prospectus for further information regarding a Portfolio’s investment strategy and related risks.
(a) Market Risk—A Portfolio may incur losses due to declines in one or more markets in which it invests. These declines may be the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s). To the extent that such developments impact specific industries, market sectors, countries or geographic regions, a Portfolio’s investments in such industries, market sectors, countries and/or
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geographic regions can be expected to be particularly affected, especially if such investments are a significant portion of its investment portfolio. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect a Portfolio. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers worldwide. As a result, local, regional or global events such as war or military conflict, acts of terrorism, the spread of infectious illness or other public health issues, social unrest, supply chain disruptions, market manipulations, government defaults, government shutdowns, the imposition of sanctions and other similar measures, recessions or other events could have a significant negative impact on global economic and market conditions. Additionally, general market conditions may impact the value of a Portfolio’s securities, including changes in interest rates, currency rates or monetary policies. It is not known how long the effects of such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may be expected to impact a Portfolio and its investments.
(b) Fixed-Income and Debt Securities Risk—The market value of a debt security may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The debt securities market can be susceptible to increases in volatility and decreases in liquidity. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.
Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity and increased redemptions, and, as a result, a Portfolio may have to
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liquidate portfolio securities at disadvantageous prices. A Portfolio may be subject to heightened interest rate risk because the Federal Reserve has raised, and may continue to raise, interest rates.
A Portfolio’s investments in lower-rated, higher-yielding securities (“junk bonds”) are subject to greater credit risk than its higher-rated investments. Credit risk is the risk that the issuer will not make interest or principal payments, or will not make payments on a timely basis. Non-investment grade securities tend to be more volatile, less liquid and are considered speculative. If there is a decline, or perceived decline, in the credit quality of a debt security (or any guarantor of payment on such security), the security’s value could fall, potentially lowering a Portfolio’s share price. The prices of non-investment grade securities, unlike investment grade debt securities, may fluctuate unpredictably and not necessarily inversely with changes in interest rates. The market for these securities may be less liquid and therefore these securities may be harder to value or sell at an acceptable price, especially during times of market volatility or decline.
Some debt securities may give the issuer the option to call, or redeem, the securities before their maturity, and during a time of declining interest rates, a Portfolio may have to reinvest the proceeds of called or redeemed securities in an investment offering a lower yield (and the Portfolio may not fully benefit from any increase in the value of its portfolio holdings as a result of declining interest rates).
Adjustable rate securities provide a Portfolio with a certain degree of protection against rises in interest rates or inflation rates, respectively, although adjustable rate securities will participate in any declines in interest rates and inflation-linked securities can also decline in value based on changes in the relevant periodic adjustment rate. Certain adjustable rate securities, such as those with interest rates that fluctuate directly or indirectly based on multiples of a stated index, are designed to be highly sensitive to changes in interest rates and can subject the holders thereof to extreme reductions of yield and possibly loss of principal. Certain fixed-income securities may be issued at a discount from their
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face value (such as zero coupon securities) or purchased at a price less than their stated face amount or at a price less than their issue price plus the portion of “original issue discount” previously accrued thereon, i.e., purchased at a “market discount.” The amount of original issue discount and/or market discount on certain obligations may be significant, and accretion of market discount together with original issue discount will cause a Portfolio to realize income prior to the receipt of cash payments with respect to these securities.
(c) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity. Non-US securities may be subject to economic sanctions or other similar governmental actions or developments, which could, among other things, effectively restrict or eliminate the Portfolio’s ability to purchase or sell certain foreign securities. To the extent the Portfolio holds securities subject to such actions, the securities may become difficult to value and/or less liquid (or illiquid). In some cases, the securities may become worthless. 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.
(d) Foreign Currency Risk—Investments denominated in currencies other than US dollars may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. A Portfolio’s investments denominated in such currencies (particularly currencies of emerging markets countries), as well as any investments in currencies themselves, could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of currencies. Irrespective of any foreign currency exposure hedging, a Portfolio may experience a decline in the value of its portfolio securities, in US dollar terms, due solely to fluctuations in currency exchange rates.
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(e) Derivatives and Hedging Risk—Derivatives and other similar transactions, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested. Swap agreements; forward currency contracts; structured products; over-the-counter options on currencies and swap agreements; and other over-the-counter derivatives transactions are subject to the risks of the creditworthiness of, and default, by the counterparty and consequently may lose all or a portion of their value due solely to the creditworthiness of, or default by, the counterparty. Over-the-counter derivatives frequently may be illiquid and difficult to value. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives. These derivatives transactions, as well as the exchange-traded futures and options in which a Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of the related reference asset, index or rate. As such, a small investment could have a potentially large impact on a Portfolio’s performance. In fact, many derivatives may be subject to greater risks than those associated with investing directly in the underlying or other reference asset. Derivatives transactions incur costs, either explicitly or implicitly, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of derivatives, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to predict correctly movements in the direction of the relevant reference asset or market and, for hedging activities, correlation of the derivative instruments used with the investments seeking to be hedged. Use of derivatives transactions, even if entered into for hedging purposes, may cause a Portfolio to experience losses greater than if the Portfolio had not engaged in such transactions. When the Portfolio enters into derivatives transactions, it may be required to post margin and make settlement payments while the positions are open, and the Portfolio may have to sell a security at a disadvantageous time or price to meet such obligations. Derivatives transactions are also subject to operational and legal risk.
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(f) Structured Products Risk—Structured notes and other structured products are privately negotiated debt instruments where the principal and/or interest is determined by reference to a specified asset, market or rate, or the differential performance of two assets or markets. Structured products can have risks of both fixed-income securities and derivatives transactions. Derivatives transactions may increase volatility or reduce returns, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the amount invested, and they are subject to many of the risks of, and can be highly sensitive to changes in the value of, the related reference asset, market or rate. As such, a small investment could have a potentially large impact on a Portfolio’s performance. Use of derivatives transactions may cause a Portfolio to experience losses greater than if a Portfolio had not engaged in such transactions.
(g) Mortgage-Related and Asset-Backed Securities Risk—Mortgage-related securities are complex instruments, subject to both credit and prepayment risk, and may be more volatile and less liquid, and more difficult to price accurately, than more traditional debt securities. Mortgage-related securities generally are subject to credit risks associated with the performance of the underlying mortgage properties. Prepayment risk can lead to fluctuations in value of the mortgage-related security which may be pronounced. As with other interest-bearing securities, the prices of certain mortgage-related securities are inversely affected by changes in interest rates. However, although the value of a mortgage-related security may decline when interest rates rise, the converse is not necessarily true, since during periods of declining interest rates the mortgages underlying the security are more likely to be prepaid.
The risks of asset-backed securities are similar to those of mortgage-related securities. However, asset-backed securities present certain risks that are not presented by mortgage-related securities. Primarily, these securities may provide a Portfolio with a less effective security interest in the related collateral than do mortgage-related securities.
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(h) Preferred Securities Risk—There are various risks associated with investing in preferred securities. In addition, unlike common stock, participation in the growth of an issuer may be limited.
| • | Credit risk is the risk that a security held by the Portfolio will decline in price or the issuer of the security will fail to make dividend, interest or principal payments when due because the issuer experiences a decline in its financial status. |
| • | Interest rate risk is the risk that securities will decline in value because of changes in market interest rates. When market interest rates rise, the market value of such securities generally will fall. |
| • | Preferred securities may include provisions that permit the issuer, at its discretion, to defer or omit distributions for a stated period without any adverse consequences to the issuer. |
| • | Preferred securities are generally subordinated to bonds and other debt instruments in an issuer’s capital structure in terms of having priority to corporate income, claims to corporate assets and liquidation payments, and therefore will be subject to greater credit risk than more senior debt instruments. |
| • | During periods of declining interest rates, an issuer may be able to exercise an option to call, or redeem its issue at par earlier than the scheduled maturity. If this occurs during a time of lower or declining interest rates, the Portfolio may have to reinvest the proceeds in lower yielding securities (and the Portfolio may not benefit from any increase in the value of its portfolio holdings as a result of declining interest rates). |
| • | Certain preferred securities may be substantially less liquid than many other securities, such as common stocks or US government securities. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by the Portfolio or at prices approximating the value at which the Portfolio is carrying the securities on its books. |
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(i) Government Securities Risk—Not all obligations of the US government, its agencies and instrumentalities are backed by the full faith and credit of the US Treasury. Some obligations are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer. Any guarantee by the US government or its agencies or instrumentalities of a security held by a Portfolio does not apply to the market value of such security or to shares of the Portfolio itself. A security backed by the US Treasury or the full faith and credit of the United States is guaranteed only as to the timely payment of interest and principal when held to maturity.
(j) Cybersecurity Risk—The Portfolios and their service providers are susceptible to operational and information security and related risks of cybersecurity incidents. Cybersecurity attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through “hacking” or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data or causing operational disruption. Cybersecurity incidents affecting the Investment Manager, transfer agent or custodian or other service providers such as financial intermediaries have the ability to cause disruptions and impact business operations, potentially resulting in financial losses, including by impediments to a Portfolio’s investment trading; the inability of Portfolio shareholders to purchase and redeem Portfolio shares; interference with a Portfolio’s ability to calculate its NAV; violations of applicable privacy, data security or other laws; regulatory fines and penalties; reputational damage; reimbursement or other compensation or remediation costs; legal fees; or additional compliance costs. Similar adverse consequences could result from cybersecurity incidents affecting issuers of securities in which a Portfolio invests; counterparties with which a Portfolio engages in transactions; governmental and other regulatory authorities, exchange and other financial market operators; and banks, brokers, dealers, insurance companies and other financial institutions and other parties. There are inherent limitations in any cybersecurity risk management systems or business continuity plans, including the possibility that certain risks have not been identified.
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8. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnification provisions. A Portfolio’s maximum exposure under these arrangements is unknown. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
9. Fair Value Measurements
Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The fair value measurement level within the fair value hierarchy for the assets and liabilities of the Fund is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below:
| • | Level 1 – unadjusted quoted prices in active markets for identical assets and liabilities |
| • | Level 2 – other significant observable inputs (including unadjusted quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of assets and liabilities) |
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Changes in valuation methodology or inputs may result in transfers into or out of the current assigned level within the hierarchy. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.
The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2023:
| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | ||||||||||||||||
| US Convertibles | ||||||||||||||||||||
| Convertible Corporate Bonds* | $ | — | $ | 8,391,827 | $ | — | $ | 8,391,827 | ||||||||||||
| Preferred Stocks* | 645,459 | 71,115 | — | 716,574 | ||||||||||||||||
| Short-Term Investments | 255,621 | — | — | 255,621 | ||||||||||||||||
| Other Financial Instruments† | ||||||||||||||||||||
| Futures Contracts | 10,807 | — | — | 10,807 | ||||||||||||||||
| Total | $ | 911,887 | $ | 8,462,942 | $ | — | $ | 9,374,829 | ||||||||||||
| US High Yield | ||||||||||||||||||||
| Corporate Bonds* | $ | — | $ | 163,030,454 | $ | — | $ | 163,030,454 | ||||||||||||
| Short-Term Investments | 8,084,741 | — | — | 8,084,741 | ||||||||||||||||
| Total | $ | 8,084,741 | $ | 163,030,454 | $ | — | $ | 171,115,195 | ||||||||||||
| US Short Duration Fixed Income | ||||||||||||||||||||
| Asset-Backed Securities | $ | — | $ | 2,247,686 | $ | — | $ | 2,247,686 | ||||||||||||
| Corporate Bonds* | — | 4,684,518 | — | 4,684,518 | ||||||||||||||||
| Mortgage-Backed Securities | — | 640,967 | — | 640,967 | ||||||||||||||||
| U.S. Treasury Securities | — | 22,639,562 | — | 22,639,562 | ||||||||||||||||
| Short-Term Investments | 54,129 | — | — | 54,129 | ||||||||||||||||
| Total | $ | 54,129 | $ | 30,212,733 | $ | — | $ | 30,266,862 | ||||||||||||
| * | Please refer to Portfolios of Investments and Notes to Portfolios of Investments for portfolio holdings by industry. |
| † | Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation). |
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Certain Level 2 securities were valued based on reference to similar securities that were trading on active markets.
An investment may be classified as a Level 3 investment if events (e.g., company announcements, market volatility, or natural disasters) occur that are expected to materially affect the value of this investment or if a price is not available through a pricing source in the Funds’ pricing matrix. In this case, the investment will be valued by the Valuation Sub-Committee of the Funds’ Valuation and Liquidity Committee in accordance with procedures approved by the Board, reflecting its fair market value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Sub-Committee include, but are not limited to, valuation techniques such as using theoretical ex-rights price models, applying a change in price from a market proxy to a halted security, or determining the intrinsic value of securities. When determining the price for Fair Valued Investments, the Valuation Sub-Committee seeks to determine the price that each affected Portfolio might reasonably expect to receive or pay from the current sale or purchase of the Fair Valued Investment in an arm’s-length transaction. Any fair value determinations shall be based upon all available information and factors that the Valuation Sub-Committee deems relevant and consistent with the principles of fair value measurements.
10. Derivative Instruments
US Convertibles used derivative instruments, including futures contracts.
US Convertibles used futures transactions to hedge against changes in interest rates, securities prices, and/or currency exchange rates, to increase total return, or to otherwise gain access or attain exposure to certain markets or other underliers.
During the year ended December 31, 2023, the approximate average monthly notional exposure for derivative instruments was as follows:
| Futures contracts: | ||
| Average notional value of contracts – long | $400,000* |
| * | Positions were open for less than one month during the period. |
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The following table summarizes the fair value of derivative instruments on the Statement of Assets and Liabilities as of December 31, 2023:
| Assets – Derivative Financial Instruments | Total | |||
| Futures contracts-Interest rate contract Unrealized appreciation (a) | $ | 10,807 | ||
| (a) | Net cumulative unrealized appreciation (depreciation) on futures contracts if any, is reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported and the net cumulative unrealized appreciation (depreciation) is included in distributable earnings (accumulated loss). |
The effect of derivative instruments on the Statement of Operations for the period ended December 31, 2023 was:
| Net Realized Gain (Loss) from: | Total | |||
| Futures contracts-Interest rate contract | $ | 6,678 | ||
| Net Change in Unrealized Appreciation (Depreciation) on: | Total | |||
| Futures contracts-Interest rate contract | $ | 10,807 | ||
As of December 31, 2023, none of the Portfolios held derivative instruments that are eligible for offset in their Statements of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through a single payment in the event of default on, or termination of, any one contract.
11. Subsequent Events
Management has evaluated subsequent events potentially affecting the Portfolios through the issuance of the financial statements. As of February 1, 2024, the Lazard US Corporate Income Portfolio changed its name to the Lazard US High Yield Portfolio and its principal investment strategies to align with its new name. Management has elected to reflect the name change throughout the accompanying financial statements.
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The Lazard Funds, Inc.
Report of Independent Registered Public Accounting Firm
To the Board of Directors of The Lazard Funds, Inc. and Shareholders of Lazard US Convertibles Portfolio, Lazard US High Yield Portfolio, and Lazard US Short Duration Fixed Income Portfolio:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Lazard US Convertibles Portfolio, Lazard US High Yield Portfolio (formerly known as Lazard US Corporate Income Portfolio), and Lazard US Short Duration Fixed Income Portfolio, (collectively the “Portfolios”), three of the portfolios constituting The Lazard Funds, Inc., including the portfolios of investments, as of December 31, 2023, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended for the Portfolios, except for Lazard US Convertibles Portfolio; the related statement of operations for the year then ended, and the statement of changes in net assets and the financial highlights for the year then ended and for the period from December 30, 2022 (commencement of operations) through December 31, 2022 for Lazard US Convertibles Portfolio; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Portfolios, except Lazard US Convertibles Portfolio, as of December 31, 2023, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of Lazard US Convertibles Portfolio as of December 31, 2023, and the results of its operations for the year then ended, the changes in its net assets and the financial highlights for the year then ended and for the period from December 30, 2022 (commencement of operations) through December 31, 2022, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is
80 Annual Report
to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolios’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
New York, New York
February 26, 2024
We have served as the auditor of one or more of the investment companies in the Lazard Fund Complex since 2004.
Annual Report 81
The Lazard Funds, Inc.
Board of Directors and Officers Information (unaudited)
| Name (Year of Birth) Address(1) | Position(s) with the Fund (Since) and Term(2) | Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Independent Directors: | ||||
| Franci J. Blassberg (1953) | Director (August 2014) | Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present) | ||
| Cornell Law School, Adjunct Professor (2013 – present) | ||||
| The Buchmann Faculty of Law, Tel Aviv University, Visiting Professor (2019) | ||||
| New York University School of Law, Adjunct Professor (2022 – present) | ||||
| Kenneth S. Davidson (1945) | Director (August 1995) | Davidson Capital Management Corporation, an investment manager, President (1978 – present) | ||
| Nancy A. Eckl (1962) | Director (April 2007) | College Retirement Equities Fund (eight accounts), Trustee (2007 – present) | ||
| TIAA-CREF Funds (68 funds) and TIAA-CREF Life Funds (11 funds), Trustee (2007 – 2023) | ||||
| TIAA Separate Account VA-1, Member of the Management Committee (2007 – present) | ||||
| Trevor W. Morrison (1971) | Director (April 2014) | New York University School of Law, Eric M. and Laurie B. Roth Professor of Law (2013 – present, previously Dean from 2013 – 2022) | ||
| Richard Reiss, Jr. (1944) | Director (May 1991) | Georgica Advisors LLC, an investment manager, Chairman (1997 – present) | ||
| Osprey Technology Acquisition Corp, a special purpose acquisition company, Director (2019 – present) | ||||
| Robert M. Solmson (1947) | Director (September 2004) | Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, Co-Managing Partner and Managing Director (2008 – present) |
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| Name (Year of Birth) Address(1) | Position(s) with the Fund (Since) and Term(2) | Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Interested Directors(3): | ||||
| Nathan A. Paul (1973) | Director (October 2017), Chief Executive Officer and President (February 2017) | Investment Manager, Chief Business Officer (April 2017 – present) and Managing Director (2003 – present) | ||
| Evan L. Russo (1974) | Director (July 2022) | Investment Manager, Chief Executive Officer (June 2022 – present) | ||
| Lazard Ltd, Chief Financial Officer (October 2017 – October 2022) and Managing Director (2009 – 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, 2024, 32 active investment portfolios. Each Director serves an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation. |
| (3) | Messrs. Paul and Russo are “interested persons” (as defined in the 1940 Act) of the Fund because of their positions with the Investment Manager (“Interested Directors”). |
The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.lazardassetmanagement.com.
Annual Report 83
| Name (Year of Birth) Address(1) | Position(s) with the Fund (Since) and Term(2) | Principal Occupation(s) During the Past Five Years | ||
| Officers(3): | ||||
| Mark R. Anderson (1970) | Vice President and Secretary (February 2017) | Managing Director (since February 2017) and General Counsel (since April 2017) of the Investment Manager (previously Chief Compliance Officer from September 2014 – April 2022) | ||
| Nargis Hilal (1984) | Chief Compliance Officer (July 2020) | Chief Compliance Officer (since April 2022) and Director of the Investment Manager (since January 2021, previously Senior Vice President) | ||
| Christina Kennedy (1990) | Treasurer (April 2022) | Senior Vice President of the Investment Manager (since January 2023, previously Vice President) | ||
| Senior Fund Accountant, Gates Capital Management Inc. (July 2016 – July 2019) | ||||
| Shari L. Soloway (1981) | Assistant Secretary (November 2015) | Head of Legal, North America and Director of the Investment Manager (since January 2020, previously Senior Vice President) | ||
| Jessica A. Falzone (1989) | Assistant Secretary (January 2019) | Senior Vice President and Counsel of the Investment Manager (since January 2023, previously Vice President) | ||
| Cesar A. Trelles (1975) | Assistant Treasurer (December 2004) | Vice President of the Investment Manager (since February 2011) |
| (1) | The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
| (2) | Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex. |
| (3) | In addition to Nathan A. Paul, Chief Executive Officer and President (since February 2017, previously Vice President and Secretary), whose information is included in the Interested Directors section above. |
84 Annual Report
The Lazard Funds, Inc. Tax and Other Information (unaudited)
Tax Information
Year Ended December 31, 2023
The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2023:
Of the dividends paid by the Portfolios, the corresponding percentage shown below is qualified dividend income.
| Portfolio | Percentage | |||
| US Convertibles | 15.38 | % | ||
| US High Yield | — | |||
| US Short Duration Fixed Income | — | |||
Of the dividends paid by the Portfolios, no dividends qualify for the dividends received deduction available to corporate shareholders.
Of the dividends paid by the Portfolios, the corresponding amount represents the long-term capital gains paid to shareholders.
| Portfolio | Long-Term Capital Gains | |||
| US Convertibles | $ | — | ||
| US High Yield | — | |||
| US Short Duration Fixed Income | — | |||
Pursuant to Section 871 of the Code, the Portfolios have no designated qualified short-term gains for purposes of exempting withholding of tax on such distributions to US nonresident shareholders.
Annual Report 85
Proxy Voting
A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the Securities and Exchange Commission (the “SEC”) website at https://www.sec.gov.
The Fund’s proxy voting record for the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SEC’s website at https://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.
Schedule of Portfolio Holdings
The Fund files the complete schedule of each portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.
86 Annual Report
The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
www.lazardassetmanagement.com
Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Custodian
State Street Bank and Trust Company
One Iron Street
Boston, Massachusetts 02210-1641
Transfer Agent and Dividend Disbursing Agent
SS&C Global Investor and Distribution Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169-0953
Telephone: 617-483-7000
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015
Legal Counsel
Dechert LLP
1095 Avenue of the Americas
New York, New York 10036-6797
Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com. LZDPS026 |  |
Lazard Funds
Annual Report
December 31, 2023
Multi-Asset Funds
Lazard Enhanced Opportunities Portfolio
Lazard Global Dynamic Multi-Asset Portfolio
Lazard Opportunistic Strategies Portfolio
Lazard Real Assets Portfolio
The Lazard Funds, Inc. Table of Contents
Please consider a Portfolio’s investment objective, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. (the “Fund”), you may obtain a prospectus or the Portfolio’s summary prospectus by calling 800-823-6300, or online, at www.lazardassetmanagement.com. Read the prospectus or the Portfolio’s summary prospectus carefully before you invest. The prospectus and a Portfolio’s summary prospectus contain the investment objective, risks, charges, expenses and other information about the Portfolio, which are not detailed in this report.
Many states have abandoned property laws that require mutual fund companies to have evidence of contact from shareholders at least every three years. Please log into any investment accounts that you may have or contact the Fund by calling 800-823-6300 to ensure that your account stays active.
Distributed by Lazard Asset Management Securities LLC.
Annual Report 1
The Lazard Funds, Inc. A Message from Lazard (unaudited)
Dear Shareholder:
The year 2023 saw bloodshed from wars in Europe and the Middle East, ample displays of political complexities in the United States, and further advances in the development of machines that can mimic human thinking. For financial markets, however, which endured nearly 4,000 basis points of interest rate hikes since late 2021, the year was defined by one simple question posed to major central banks: What comes next?
Financial markets were a roller coaster in 2023, as investors were forced to constantly adjust their expectations on when key central banks would retreat from their restrictive monetary policy stances out of fear that these positions would tip the global economy into a severe recession. Against this backdrop, the US Federal Reserve (the “Fed”) was front and center in the minds of investors, as it waged its most aggressive rate-hiking campaign in over 40 years. After raising interest rates seven times in 2022, the world’s most influential central bank did so again four times in 2023, raising borrowing costs to their highest level in 22 years. Data suggesting that domestic inflation was cooling, and that the US economy remained remarkably resilient sparked optimism in the second half of the year that the Fed was done raising interest rates and perhaps would begin lowering them in 2024. While the Fed did, in fact, pass up opportunities to raise interest rates higher in its last three policy meetings of 2023, it also sent mixed signals about the trajectory of its rate-hiking campaign, which triggered spikes in volatility across financial markets.
The Fed was not the only central bank to make news in 2023. In Europe, both the European Central Bank (the “ECB”) and the Bank of England (the “BOE”) continued to raise interest rates at a furious pace before pausing their inflation-fighting campaigns in the latter part of the year. Meanwhile, in Asia, the Bank of Japan, which kept interest rates ultra-low during the global monetary tightening cycle, began to veer from this path in the closing months of the year amid signs that inflation was accelerating in Japan.
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After suffering through a dismal 2022, financial markets rebounded in 2023, driven primarily by hopes that inflation had fallen enough for key central banks, particularly the Fed, to begin cutting interest rates next year. Global equity markets, as measured by the MSCI All Country World Index, surged 22.2% in 2023 while global bond markets, as measured by the Bloomberg Global Aggregate Index, gained 5.7%. (Index returns are in US dollar terms.)
The challenging market conditions in 2023 are a reminder of the importance of active portfolio management. Turbulent markets are likely to differentiate winners from losers. We remain confident that fundamental analysis and bottom-up security selection will be crucial drivers of performance going forward. We are privileged that you have turned to Lazard for your investment needs and value your continued confidence in our investment management capabilities.
Sincerely,
Lazard Asset Management LLC
Annual Report 3
The Lazard Funds, Inc. Investment Overviews (unaudited)
MARKET OVERVIEW
Lazard Funds Annual Report
Global Markets
In the trailing 12-month period that ended December 31, 2023, global equity markets rose sharply, as investors speculated about the path ahead for the interest rate policies of major central banks.
After enduring nearly 4,000 basis points in interest rate hikes from major central banks since late 2021, the actions of these central banks were front and center once again in the minds of investors. Early on, markets rallied on hopes that a severe worldwide economic recession could be avoided, and that slowing inflation would induce major central banks to ease up on their forceful monetary tightening cycles. That optimism faded in subsequent months, however, as the Fed continued with its most aggressive rate-hiking campaign in over 40 years and hinted that interest rates could stay elevated for a while. The fallout from this blizzard of rate hikes was evident in the first half of the year when bond losses contributed to regional bank weakness in the United States. The Fed, as expected, kept interest rates steady at a 22-year high following policy meetings in September, November, and December. However, after months of signaling that it was adopting a “higher for longer” interest rate policy stance, the Fed began taking a less hawkish tone in November, as data suggested that a “soft landing” for the US economy was growing increasingly. Investors cheered near the end of the period when the Fed hinted that its forceful rate-hiking campaign, which had raised rates 11 times since 2022, including four times in 2023, had reached its conclusion and forecast that it could reduce interest rates three times in 2024. After briefly exceeding the psychologically important threshold of 5% in late October, the yield on the benchmark 10-year US Treasury note ended the year exactly where it started, at 3.88%.
In Europe, persistent inflationary pressure in the eurozone led the ECB to maintain a hawkish posture throughout the year, raising rates to an all-time high after 10 consecutive hikes since mid-2022, including six raises in 2023. With data suggesting that significant progress had been made in its war against inflation, the ECB held
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interest rates steady in October and December but pledged to keep them at an elevated level for a sustained duration of time. Despite the ECB’s vow, investors nevertheless were betting that the eurozone central bank would reduce rates next year as the common currency bloc lurched toward an economic recession. Similarly, with price pressure in the United Kingdom easing materially, the BOE kept its interest rates steady in September, November, and December, leaving them at a 15-year high after 14 consecutive hikes since December 2021, including five times in 2023. The BOE pledged to maintain a hawkish stance for an extended period, but data suggesting that the United Kingdom was headed for a period of economic stagnation sparked speculation that the British central bank would cut rates in the first half of next year.
Despite stiff interest-rate headwinds, the value of global equity markets increased US$10 trillion in 2023, thanks largely to the strong performance of a handful of mega-cap US technology stocks. These mega-cap US technology stocks, the so-called “Magnificent Seven”—Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla—surged 76% on a weighted average basis and accounted for about 42% of the gain recorded by the MSCI All Country World Index (“ACWI”). By way of comparison, the rest of the stocks in the MSCI ACWI gained roughly 12% for the year.
Against this backdrop, equity markets in both the developed and developing worlds rose in 2023, with the former outperforming the latter. In the United States, the S&P 500 Index soared and came within 0.6% of its record high at the end of year on growing expectations that the Fed would pivot to a more dovish stance. The “Magnificent Seven” group of mega-cap technology stocks accounted for roughly two-thirds of the S&P 500 Index’s 2023 gain. Across the Atlantic, the pan-European STOXX Europe 600 Index recorded its best annual performance since 2019 on hopes that the ECB would begin reducing rates in 2024 amid signs of significant progress in its inflation-fighting campaign. In Japan, the Tokyo Stock Price Index (“TOPIX”) surged, thanks largely to a weak yen and efforts to improve corporate governance and profitability. Meanwhile, in emerging Asia, the Hong Kong-based Hang Seng Index, which is comprised mostly of companies from mainland China and serves as a gateway for foreign investors wanting to
Annual Report 5
put money there, tumbled in 2023 and was one of the world’s worst-performing stock markets due to worries about China’s mounting economic woes and the lack of a forceful response from Chinese policymakers.
Information technology was the best-performing sector in 2023, as a market frenzy about artificial intelligence led investors to bid up shares of technology companies linked to that field of study. Utilities was the worst-performing sector, as elevated bond yields hurt high-dividend-paying “bond proxy” stocks.
Multi-Asset
Global equity markets rose sharply in 2023, as investors speculated about the path ahead for the interest rate policies of major central banks. Despite stiff interest-rate headwinds, the value of global equity markets increased US$10 trillion in 2023, thanks largely to the strong performance of a handful of mega-cap US technology stocks. After enduring nearly 4,000 basis points of interest rate hikes from major central banks since 2021, the bond market staged a strong rally in the last two months of 2023 on expectations that a global rate-cutting cycle would soon begin. The yield on the benchmark 10-year US Treasury closed the year at 3.88%, the same level at which it started the year. Despite high volatility, credit markets performed well in 2023, with solid demand for both global investment grade corporate bonds and global high-yield bonds. Emerging markets debt ended a difficult and volatile year with significant gains, thanks to a strong rally in the closing months of 2023.
PORTFOLIO PERFORMANCE
Lazard Enhanced Opportunities Portfolio
For the year ended December 31, 2023, the Lazard Enhanced Opportunities Portfolio’s Institutional Shares posted a total return of 7.02%, while Open Shares posted a total return of 6.63%, as compared with the 13.90% return for the ICE BofAML US Convertible ex Mandatory® Index and the 3.10% return for the HFRX Global Hedge Fund® Index.
Factors that contributed positively to returns in 2023 were carry, a trading strategy that involves borrowing at a low-interest rate and investing in an asset that provides a higher rate of return,
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volatility yield, and special situations. Net carry (coupon, net of dividend and finance cost) averaged approximately 3% throughout the year. Volatility yield, the return associated with the dynamic hedging and re-hedging of the equity underlying a convertible, was a consistent positive contributor despite equity volatility remaining muted for much of the year, with the Chicago Board Options Exchange Volatility Index (“VIX”), a measure of the market’s expectations of 30-day volatility, finishing the year in the 13th percentile. Special situations added to returns, most notably through the first three quarters of the year, as convertible issuers looked to address their capital structure needs by repurchasing debt and/or extending maturities (i.e., buybacks and exchange offers). Portfolio-level equity hedges, implemented using exchange-traded funds and options on the Nasdaq 100, Russell 2000, and S&P 500 Indices, were a small positive contributor for the year.
The leading detractor for the year was basis cheapening, an accelerated weakening of a long convertible bond position versus a short stock hedge, which was mainly driven by two factors: i) a reduction in volatility inputs throughout the year, and ii) supply and demand associated with long-only selling. Year over year, the Portfolio team reduced volatility assumptions across the Portfolio by approximately 20%, as equity volatility contracted throughout much of the year and the VIX remained between 12th and 16th percentile for much of the second half of 2023. By the team’s estimates, long-only funds redeemed approximately 9% of assets under management in 2023, leading to technical pressure on the convertible basis. Portfolio-level credit hedges were also a small detractor for the year, as high-yield spreads tightened. The team implemented its credit hedges through the use of exchange traded funds and options on exchange traded funds.
Lazard Global Dynamic Multi-Asset Portfolio
For the year ended December 31, 2023, the Lazard Global Dynamic Multi-Asset Portfolio’s Institutional Shares posted a total return of 11.22%, while Open Shares posted a total return of 10.90%, as compared with the 23.79% return for the MSCI World® Index and the 14.51% return of its blended benchmark, which is a 50/50 blend of the MSCI World Index and the Bloomberg Global Aggregate Index.
Annual Report 7
Among the detracting factors, in the equity allocation, stock selection in the information technology and consumer staples sectors, as well as stock selection in the US, undercut relative performance. Within the fixed income allocation, underweight exposure to bonds in South Korea, as well as underweight exposure to bonds on the Chinese renminbi yield curve, hurt relative performance.
Currency forwards were used for foreign exchange hedging purposes only, and they marginally detracted from relative performance in the year.
Among the contributing factors, a modest overweight exposure to equities versus fixed income relative to the benchmark was beneficial to relative performance, as equities outperformed fixed income in the year. Within the equity allocation, underweight exposure to the energy and materials sectors, as well as stock selection in Italy and the Netherlands, boosted relative performance. Overweight positioning to bonds in the Bahamas, Peru, and Chile within the fixed income allocation helped relative performance.
Lazard Opportunistic Strategies Portfolio
For the year ended December 31, 2023, the Lazard Opportunistic Strategies Portfolio’s Institutional Shares posted a total return of 10.29%, while Open Shares posted a total return of 9.85%, as compared with the 23.79% return for the MSCI World Index and 16.26% return for the Global Asset Allocation Blended Index, a 60%/40% split of the MSCI World Index and the Bloomberg US Aggregate Index.
The Portfolio’s investments are generally grouped by the Portfolio management team into the following three categories: contrarian, trending, and diversifying. The Portfolio management team makes allocation changes based on a forward-looking assessment of capital markets, using a risk/reward analysis.
Contrarian investments, which represented 54% of the Portfolio at the end of 2023, outperformed US fixed income, as represented by the Bloomberg Barclays US Aggregate Index, and underperformed the Global Asset Allocation Blended Index and the MSCI World
8 Annual Report
Index. Positions in tech software, US value, and Europe were helpful, while exposure to China and to consumer staples detracted from performance.
Trending investments, which represented 24% of the Portfolio at year-end, outperformed US fixed income, and underperformed the Global Asset Allocation Blended Index and the MSCI World Index. Exposure to Japan, US mega-caps, and cybersecurity were helpful within the segment. However, exposure to the minimum volatility factor through the iShares MSCI USA Minimum Volatility Factor ETF detracted, as did exposure to infrastructure and health care.
Diversifying investments, which represented 22% of the Portfolio at the end of the year, outperformed US fixed income and underperformed the Global Asset Allocation Blended Index. Exposure to agriculture and investment-grade corporate bonds was helpful, while a long USD position and exposure to copper and aluminum were less helpful.
Investments in China (iShares MSCI China ETF) and the consumer staples sector (Consumer Staples Select Sector SPDR Fund) detracted from performance.
Investments within the information technology sector (iShares Expanded Tech-Software Sector ETF), US value (Vanguard S&P 500 Value ETF), and Europe (SPDR EURO STOXX 50 ETF) contributed to performance.
Lazard Real Assets Portfolio
For the year ended December 31, 2023, the Lazard Real Assets Portfolio’s Institutional Shares posted a total return of 4.44%, while Open Shares posted a total return of 4.16% and R6 Shares posted a return of 4.38%, as compared with the 2.46% return for the Real Assets Blend Index (an equal weighted blend of the MSCI World Core Infrastructure, MSCI ACW IMI Core Real Estate, and Bloomberg Commodity Total Return Indices), and the 23.79% return for the MSCI World Index.
Annual Report 9
Infrastructure stocks contributed positively to performance in 2023. Construction and engineering company Vinci and multi-utilities company National Grid were among the top contributors. By contrast, specialized REIT SBA Communications and electric utilities company, American Electric Power, hurt performance.
Real estate performance also contributed positively during the year. The top contributors were US REITs Equinix and SL Green. However, US REIT Mid-America Apartment Communities and South African REIT Growthpoint Properties detracted from returns.
The Portfolio’s commodities allocation contributed negatively to performance, primarily due to natural gas, soybean oil, corn, and nickel. Gold was the top contributor during the period; live cattle and coffee were additive as well. Commodity-related equities had favorable performance, led by exposure to Northam Platinum.
The Portfolio used futures and total return swaps to gain exposure to commodities. The combined contribution of these was negative for the Portfolio during the period.
The Portfolio also employed currency forwards during the period. Its contribution was neutral for Portfolio performance.
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The Lazard Funds, Inc. Performance Overviews (unaudited)
Please see the “Notes to the Performance Overviews” for important information about the calculation of total returns, performance information generally, performance differences between Institutional Shares and Open Shares, and the indices shown below.
Lazard Enhanced Opportunities Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Enhanced Opportunities Portfolio, the ICE BofAML U.S. Convertible ex Mandatory® Index and the HFRX Global Hedge Fund® Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One Year | Five Year | Since Inception | † | ||||
| Institutional Shares | 7.02% | 4.60% | 3.19% | ||||
| Open Shares | 6.63% | 4.36% | 2.95% | ||||
| ICE BofAML U.S. Convertible ex Mandatory Index | 13.90% | 12.23% | 9.44% | ||||
| HFRX Global Hedge Fund Index | 3.10% | 3.46% | 1.64% |
| † | The inception date for the Portfolio was December 31, 2014. |
Annual Report 11
Lazard Global Dynamic Multi-Asset Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Dynamic Multi-Asset Portfolio, the MSCI® World Index and GDMA Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One Year | Five Year | Since Inception | † | ||||
| Institutional Shares | 11.22% | 4.25% | 4.52% | ||||
| Open Shares | 10.90% | 3.98% | 4.23% | ||||
| MSCI World Index | 23.79% | 12.80% | 10.63% | ||||
| GDMA Index | 14.51% | 6.34% | 5.48% |
| † | The inception date for the Portfolio was May 27, 2016. |
Lazard Opportunistic Strategies Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Opportunistic Strategies Portfolio, MSCI World Index and Global Asset Allocation Blended Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One Year | Five Year | Ten Year | |||||
| Institutional Shares | 10.29% | 5.96% | 3.80% | ||||
| Open Shares | 9.85% | 5.68% | 3.46% | ||||
| MSCI World Index | 23.79% | 12.80% | 8.60% | ||||
| Global Asset Allocation Blended Index | 16.26% | 8.43% | 6.13% |
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Lazard Real Assets Portfolio
Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Real Assets Portfolio, MSCI World Index, Real Assets Index, Real Assets Blend Index and Real Assets Blend Linked Index
Average Annual Total Returns
Periods Ended December 31, 2023
| One Year | Five Year | Since Inception | † | ||||
| Institutional Shares | 4.44% | 6.31% | 4.70% | ||||
| Open Shares | 4.16% | 6.03% | 4.40% | ||||
| R6 Shares | 4.38% | N/A | –1.25% | ||||
| MSCI World Index | 23.79% | 12.80% | 10.73% (Institutional Shares) 10.53% (Open Shares) 15.07% (R6 Shares) | ||||
| Real Assets Index | 2.55% | 6.63% | 5.34% (Institutional Shares) 5.32% (Open Shares) –1.13% (R6 Shares) | ||||
| Real Assets Blend Index | 2.46% | 6.27% | 5.10% (Institutional Shares) 5.08% (Open Shares) –1.34% (R6 Shares) | ||||
| Real Assets Blend Linked Index | 2.47% | 6.61% | 5.33% (Institutional Shares) 5.31% (Open Shares) –1.18% (R6 Shares) |
| † | The inception date for the Institutional Shares was December 30, 2016, for the Open Shares was January 9, 2017 and for the R6 Shares was July 22, 2022. |
Annual Report 13
| Notes to Performance Overviews: |
Information About Portfolio Performance Shown Above
Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolios may have been waived or reimbursed by Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), State Street Bank and Trust Company, the Fund’s administrator (“State Street”), or SS&C Global Investor and Distribution Solutions Inc., the Fund’s transfer agent and dividend disbursing agent (“SS&C GIDS”); without such waiver/reimbursement of expenses, the Portfolios’ returns would have been lower.
Performance results do not include adjustments made for financial reporting purposes in accordance with US Generally Accepted Accounting Principles (“GAAP”), if any, and may differ from amounts reported in the financial highlights. For the Lazard Enhanced Opportunity Portfolio, a voluntary reimbursement by State Street increased the total return ratio by 0.11%, for year ended December 31, 2021.
The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of an investment in a Portfolio will fluctuate, so that Portfolio shares, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated, there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graphs and tables above do not reflect the deduction of taxes that a shareholder would pay on a Portfolio’s distributions or the redemption of Portfolio shares.
The performance of Institutional Shares, Open Shares and R6 Shares, as applicable, may vary, primarily based on the differences in fees borne by shareholders investing in different classes of a Portfolio.
Information About Index Performance Shown Above
The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The indices are unmanaged, have no fees or costs and are not available for investment.
The GDMA Index is a blended index constructed by the Investment Manager that is comprised of 50% MSCI World Index and 50% Bloomberg Global Aggregate® Index and is rebalanced monthly. The Bloomberg Global Aggregate Index provides a broad-based measure of global investment-grade fixed-income debt markets, including government-related debt, corporate debt, securitized debt and sovereign debt.
The Global Asset Allocation Blended Index is a blended index constructed by the Investment Manager that is comprised of 60% MSCI World Index and 40% Bloomberg US Aggregate Index and is rebalanced quarterly. The Bloomberg US Aggregate Index covers the investment-grade, US dollar-denominated, fixed-rate taxable bond market, including US Treasuries, government-related and corporate securities, mortgage-backed securities, asset-backed securities, and commercial mortgage-backed securities, with maturities of no less than one year.
The HFRX Global Hedge Fund Index is designed to be representative of the overall composition of the hedge fund universe. It is comprised of all eligible hedge fund strategies, including but not limited to convertible arbitrage, distressed securities, equity hedge, equity market neutral, event-driven, macro, merger arbitrage, and relative value arbitrage. The strategies are asset weighted based on the distribution of assets in the hedge fund industry.
14 Annual Report
The ICE BofAML U.S. Convertible ex Mandatory Index measures the performance of convertible securities of all corporate sectors with a par amount of $25 million or more and a maturity of at least one year and excludes preferred equity redemption stocks and converted securities.
The MSCI World Index is a free-float-adjusted market capitalization index that is designed to measure global developed markets equity performance. The MSCI World Index consists of 23 developed markets country indices.
The Real Assets Index is an index constructed by the Investment Manager that is comprised of 33.3% MSCI World Core Infrastructure USD Hedged Index, 33.3% MSCI ACWI IMI Core Real Estate Index, and 33.3% Bloomberg Commodity Total Return Index. The Real Assets Index was constructed by the Investment Manager for comparison to the performance of the Lazard Real Assets Portfolio pursuant to its investment strategy effective September 1, 2020. The MSCI World Core Infrastructure USD Hedged Index captures large and mid-cap securities across the 23 developed market countries of the MSCI World Index and is designed to represent the performance of listed companies within the developed markets that are engaged in core industrial infrastructure activities. Note that the Investment Manager invests in a range of companies globally, not specifically developed markets countries. The MSCI ACWI IMI Core Real Estate Index is a free float-adjusted market capitalization index that consists of large, mid and small-cap stocks across 23 developed markets and 24 emerging markets countries engaged in the ownership, development and management of specific core property type real estate. The Index excludes companies, such as real estate services and real estate financing companies, that do not own properties. The Bloomberg Commodity Total Return Index is composed of futures contracts and reflects the returns on a fully collateralized investment in the Bloomberg Commodity Indices (the “BCOM”). This combines the returns of the BCOM with the returns on cash collateral invested in 13 week (3 Month) U.S. Treasury Bills.
The Real Assets Blend Index is an index constructed by the Investment Manager that is comprised of 33.3% MSCI World Core Infrastructure Index, 33.3% MSCI ACWI IMI Core Real Estate Index and 33.3% Bloomberg Commodity Total Return Index. Effective as of May 1, 2023, the Real Assets Blend Index replaced the Real Assets Index, substituting MSCI World Core Infrastructure USD Hedged Index with the MSCI World Core Infrastructure Index.
The Real Assets Blend Linked Index is an unmanaged index created by the Investment Manager, which links the performance of the Real Assets Index for all periods through April 30, 2023 and the Real Assets Blend Index for all periods thereafter.
Annual Report 15
The Lazard Funds, Inc.
Information About Your Portfolio’s Expenses (unaudited)
Expense Example
As a shareholder in a Portfolio, you incur ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2023 through December 31, 2023 and held for the entire period.
Actual Expenses
For each share class of the Portfolios, the first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
For each share class of the Portfolios, the second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the class’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other mutual funds.
16 Annual Report
| Portfolios | Beginning Account Value 7/1/23 | Ending Account Value 12/31/23 | Expenses Paid During Period 7/1/23 - 12/31/23 | * | Annualized Expense Ratio During Period 7/1/23 - 12/31/23 | ||||
| Enhanced Opportunities | |||||||||
| Institutional Shares | |||||||||
| Actual | $1,000.00 | $1,018.80 | $18.11 | 3.56% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,007.26 | $18.01 | 3.56% | |||||
| Open Shares | |||||||||
| Actual | $1,000.00 | $1,016.50 | $19.47 | 3.83% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,005.90 | $19.36 | 3.83% | |||||
| Global Dynamic Multi-Asset | |||||||||
| Institutional Shares | |||||||||
| Actual | $1,000.00 | $1,054.70 | $ 4.66 | 0.90% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,020.67 | $ 4.58 | 0.90% | |||||
| Open Shares | |||||||||
| Actual | $1,000.00 | $1,053.80 | $ 5.95 | 1.15% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,019.41 | $ 5.85 | 1.15% | |||||
| Opportunistic Strategies | |||||||||
| Institutional Shares | |||||||||
| Actual | $1,000.00 | $1,059.00 | $ 5.29 | 1.02% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,020.06 | $ 5.19 | 1.02% | |||||
| Open Shares | |||||||||
| Actual | $1,000.00 | $1,056.70 | $ 6.58 | 1.27% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,018.80 | $ 6.46 | 1.27% | |||||
| Real Assets | |||||||||
| Institutional Shares | |||||||||
| Actual | $1,000.00 | $1,046.60 | $ 4.13 | 0.80% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,021.17 | $ 4.08 | 0.80% | |||||
| Open Shares | |||||||||
| Actual | $1,000.00 | $1,044.10 | $ 5.41 | 1.05% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,019.91 | $ 5.35 | 1.05% | |||||
| R6 Shares | |||||||||
| Actual | $1,000.00 | $1,045.80 | $ 3.87 | 0.75% | |||||
| Hypothetical (5% Return Before Expenses) | $1,000.00 | $1,021.42 | $ 3.82 | 0.75% | |||||
| * | Expenses are equal to the annualized expense ratio, net of expenses waivers and reimbursements, of each share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period). |
Annual Report 17
The Lazard Funds, Inc. Portfolio Holdings
Presented by Asset Class/Sector (unaudited)
| Lazard Enhanced Opportunities Portfolio | |||||||||
| Asset Class/Sector | Long | ^ | Short | † | |||||
| Convertible Corporate Bonds | |||||||||
| Communication Services | 9.1 | % | –0.2 | % | |||||
| Consumer Discretionary | 5.7 | — | |||||||
| Consumer Staples | 0.7 | — | |||||||
| Energy | 2.3 | — | |||||||
| Financials | 9.2 | — | |||||||
| Health Care | 7.2 | — | |||||||
| Industrials | 7.8 | –0.6 | |||||||
| Information Technology | 9.2 | — | |||||||
| Materials | 2.8 | — | |||||||
| Real Estate | 0.7 | — | |||||||
| Technology | 0.6 | — | |||||||
| Utilities | 0.2 | — | |||||||
| Equity | |||||||||
| Communication Services | — | –3.9 | |||||||
| Consumer Discretionary | — | –8.1 | |||||||
| Consumer Staples | — | –0.8 | |||||||
| Energy | — | –3.7 | |||||||
| Financials | — | –7.3 | |||||||
| Health Care | 0.1 | –6.2 | |||||||
| Industrials | 0.1 | –15.3 | |||||||
| Information Technology | — | –8.5 | |||||||
| Materials | — | –4.7 | |||||||
| Real Estate | — | –0.4 | |||||||
| Utilities | — | –0.1 | |||||||
| U.S. Treasury Securities | 41.4 | –36.2 | |||||||
| Exchange-Traded Funds | — | –4.0 | |||||||
| Purchased Options | 0.1 | — | |||||||
| Short-Term Investments | 2.8 | — | |||||||
| Total Investments | 100.0 | % | –100.0 | % | |||||
| ^ | Represents percentage of total investments excluding securities sold short. |
| † | Represents percentage of total securities sold short. |
18 Annual Report
| Asset Class/Sector | Lazard Global Dynamic Multi-Asset Portfolio | ** | Lazard Opportunistic Strategies Portfolio | ** | Lazard Real Assets Portfolio | |||||||
| Equity* | ||||||||||||
| Communication Services | 5.8 | % | 4.6 | % | 0.1 | % | ||||||
| Consumer Discretionary | 8.8 | 8.1 | — | |||||||||
| Consumer Staples | 6.0 | 4.2 | 0.2 | |||||||||
| Energy | 1.2 | 2.5 | 6.7 | |||||||||
| Financials | 14.4 | 10.4 | 1.2 | |||||||||
| Health Care | 10.1 | 7.2 | — | |||||||||
| Industrials | 7.7 | 7.9 | 8.0 | |||||||||
| Information Technology | 14.2 | 21.1 | — | |||||||||
| Materials | 1.4 | 2.7 | 1.1 | |||||||||
| Real Estate | 1.7 | 1.8 | 39.6 | |||||||||
| Utilities | 2.4 | 1.9 | 20.8 | |||||||||
| Commodity | — | 2.1 | — | |||||||||
| Exchange-Traded Funds | — | — | 4.8 | |||||||||
| Fixed Income | — | 24.0 | — | |||||||||
| Sovereign Debt | 23.5 | — | — | |||||||||
| U.S. Treasury Securities | 2.8 | — | — | |||||||||
| Short-Term Investments | — | 1.5 | 17.5 | |||||||||
| Total Investments | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
| * | Represents percentage of total investments. |
| ** | The sector breakdown includes the underlying holdings of exchange-traded funds held by the Portfolio. |
Annual Report 19
The Lazard Funds, Inc. Portfolios of Investments
December 31, 2023
The accompanying notes are an integral part of these financial statements.
20 Annual Report
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| Shopify, Inc., 0.125%, 11/01/25 (±) | USD | 910 | $ | 862,680 | ||||||
| SSR Mining, Inc., 2.500%, 04/01/39 (±) | USD | 221 | 209,176 | |||||||
| StorageVault Canada, Inc., 5.000%, 03/31/28 (±) | CAD | 121 | 85,371 | |||||||
| 2,225,087 | ||||||||||
| Hong Kong | 2.2% | ||||||||||
| Cathay Pacific Finance III Ltd., 2.750%, 02/05/26 (±) | HKD | 6,000 | 807,389 | |||||||
| Israel | 1.2% | ||||||||||
| Wix.com Ltd., 0.000%, 08/15/25 (±) | USD | 502 | 456,569 | |||||||
| Netherlands | 2.2% | ||||||||||
| Pharming Group NV, 3.000%, 01/21/25 (±) | EUR | 300 | 318,589 | |||||||
| Basic-Fit NV, 1.500%, 06/17/28 (±) | EUR | 500 | 497,380 | |||||||
| 815,969 | ||||||||||
| Singapore | 0.9% | ||||||||||
| Sea Ltd., 2.375%, 12/01/25 (±) | USD | 336 | 321,888 | |||||||
| United Kingdom | 0.5% | ||||||||||
| Just Eat Takeaway.com NV, 1.250%, 04/30/26 (±) | EUR | 200 | 193,747 | |||||||
| United States | 83.7% | ||||||||||
| Air Transport Services Group, Inc., 3.875%, 08/15/29 (±) | USD | 49 | 43,733 | |||||||
| Airbnb, Inc., 0.000%, 03/15/26 (±) | USD | 95 | 85,557 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 21
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| Amyris, Inc., 1.500%, 11/15/26 («), (±) | USD | 938 | $ | 32,830 | ||||||
| Apellis Pharmaceuticals, Inc., 3.500%, 09/15/26 (±) | USD | 306 | 499,943 | |||||||
| Arbor Realty Trust, Inc., 7.500%, 08/01/25 (±) | USD | 564 | 574,716 | |||||||
| Bentley Systems, Inc., 0.375%, 07/01/27 (±) | USD | 48 | 43,176 | |||||||
| Bill Holdings, Inc., 0.000%, 12/01/25 (±) | USD | 689 | 649,727 | |||||||
| Blackline, Inc., 0.125%, 08/01/24 (±) | USD | 285 | 292,296 | |||||||
| Block, Inc., 0.125%, 03/01/25 (±) | USD | 254 | 249,403 | |||||||
| Bloom Energy Corp.: | ||||||||||
| 2.500%, 08/15/25 (±) | USD | 197 | 224,876 | |||||||
| 3.000%, 06/01/28 (±) | USD | 48 | 51,360 | |||||||
| Bread Financial Holdings, Inc., 4.250%, 06/15/28 (±) | USD | 324 | 347,101 | |||||||
| Carnival Corp., 5.750%, 10/01/24 (±) | USD | 455 | 866,775 | |||||||
| Century Aluminum Co., 2.750%, 05/01/28 (±) | USD | 235 | 205,117 | |||||||
| Cerence, Inc., 3.000%, 06/01/25 (±) | USD | 98 | 94,668 | |||||||
| Chart Industries, Inc., 1.000%, 11/15/24 (±) | USD | 573 | 1,334,402 | |||||||
| Chefs’ Warehouse, Inc., 2.375%, 12/15/28 | USD | 522 | 498,101 | |||||||
| Chegg, Inc., 0.125%, 03/15/25 (±) | USD | 377 | 348,913 | |||||||
| Coherus Biosciences, Inc., 1.500%, 04/15/26 (±) | USD | 675 | 382,855 | |||||||
The accompanying notes are an integral part of these financial statements.
22 Annual Report
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| CONMED Corp., 2.250%, 06/15/27 (±) | USD | 288 | $ | 289,267 | ||||||
| CSG Systems International, Inc., 3.875%, 09/15/28 (±) | USD | 97 | 97,912 | |||||||
| Danimer Scientific, Inc., 3.250%, 12/15/26 (±) | USD | 146 | 28,715 | |||||||
| Desktop Metal, Inc., 6.000%, 05/15/27 (±) | USD | 377 | 243,447 | |||||||
| DigitalOcean Holdings, Inc., 0.000%, 12/01/26 (±) | USD | 797 | 661,032 | |||||||
| DISH Network Corp., 3.375%, 08/15/26 (±) | USD | 1 | 535 | |||||||
| Eagle Bulk Shipping, Inc., 5.000%, 08/01/24 (±) | USD | 1,041 | 1,837,885 | |||||||
| Encore Capital Group, Inc., 4.000%, 03/15/29 (±) | USD | 513 | 507,870 | |||||||
| Enphase Energy, Inc.: | ||||||||||
| 0.000%, 03/01/26 (±) | USD | 197 | 180,452 | |||||||
| 0.000%, 03/01/28 (±) | USD | 54 | 48,298 | |||||||
| Envestnet, Inc., 0.750%, 08/15/25 (±) | USD | 448 | 419,328 | |||||||
| Everbridge, Inc.: | ||||||||||
| 0.125%, 12/15/24 (±) | USD | 197 | 183,703 | |||||||
| 0.000%, 03/15/26 (±) | USD | 215 | 186,513 | |||||||
| Expedia Group, Inc., 0.000%, 02/15/26 (±) | USD | 473 | 449,586 | |||||||
| EZCORP, Inc.: | ||||||||||
| 2.875%, 07/01/24 (±) | USD | 637 | 653,243 | |||||||
| 3.750%, 12/15/29 (±) | USD | 437 | 443,336 | |||||||
| Fisker, Inc., 2.500%, 09/15/26 (±) | USD | 775 | 167,683 | |||||||
| fuboTV, Inc., 3.250%, 02/15/26 (±) | USD | 16 | 11,760 | |||||||
| Green Plains, Inc., 2.250%, 03/15/27 (±) | USD | 247 | 258,584 | |||||||
| Greenbrier Cos., Inc., 2.875%, 04/15/28 (±) | USD | 652 | 642,872 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 23
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| Guess, Inc., 3.750%, 04/15/28 (±) | USD | 617 | $ | 687,585 | ||||||
| Guidewire Software, Inc., 1.250%, 03/15/25 (±) | USD | 525 | 578,287 | |||||||
| Harmonic, Inc., 2.000%, 09/01/24 (±) | USD | 325 | 494,000 | |||||||
| HAT Holdings I LLC/HAT Holdings II LLC, 3.750%, 08/15/28 (±) | USD | 117 | 136,750 | |||||||
| Health Catalyst, Inc., 2.500%, 04/15/25 (±) | USD | 42 | 40,215 | |||||||
| i3 Verticals LLC, 1.000%, 02/15/25 (±) | USD | 370 | 347,106 | |||||||
| INOTIV, Inc., 3.250%, 10/15/27 (±) | USD | 468 | 201,806 | |||||||
| Insmed, Inc., 0.750%, 06/01/28 (±) | USD | 197 | 225,959 | |||||||
| Insulet Corp., 0.375%, 09/01/26 (±) | USD | 192 | 221,568 | |||||||
| Kaman Corp., 3.250%, 05/01/24 (±) | USD | 186 | 181,350 | |||||||
| Karyopharm Therapeutics, Inc., 3.000%, 10/15/25 (±) | USD | 107 | 53,500 | |||||||
| Liberty Interactive LLC: | ||||||||||
| 4.000%, 11/15/29 (±) | USD | 1,079 | 275,145 | |||||||
| 3.750%, 02/15/30 (±) | USD | 1,489 | 379,695 | |||||||
| Liberty Media Corp.: | ||||||||||
| 2.750%, 12/01/49 (±) | USD | 948 | 897,092 | |||||||
| 2.375%, 09/30/53 (±) | USD | 437 | 474,582 | |||||||
| Livent Corp., 4.125%, 07/15/25 (±) | USD | 387 | 812,506 | |||||||
| Marcus Corp., 5.000%, 09/15/25 (±) | USD | 398 | 587,846 | |||||||
| Marriott Vacations Worldwide Corp., 0.000%, 01/15/26 (±) | USD | 58 | 51,214 | |||||||
| Match Group Financeco 2, Inc., 0.875%, 06/15/26 (±) | USD | 1,010 | 913,444 | |||||||
The accompanying notes are an integral part of these financial statements.
24 Annual Report
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| Mesa Laboratories, Inc., 1.375%, 08/15/25 (±) | USD | 455 | $ | 420,010 | ||||||
| Mirum Pharmaceuticals, Inc., 4.000%, 05/01/29 (±) | USD | 18 | 21,960 | |||||||
| Model N, Inc., 2.625%, 06/01/25 (±) | USD | 51 | 54,876 | |||||||
| NCL Corp. Ltd.: | ||||||||||
| 5.375%, 08/01/25 (±) | USD | 38 | 48,944 | |||||||
| 1.125%, 02/15/27 (±) | USD | 21 | 19,280 | |||||||
| 2.500%, 02/15/27 (±) | USD | 231 | 217,371 | |||||||
| NeoGenomics, Inc., 1.250%, 05/01/25 (±) | USD | 414 | 388,125 | |||||||
| Pacira BioSciences, Inc., 0.750%, 08/01/25 (±) | USD | 768 | 711,840 | |||||||
| Pegasystems, Inc., 0.750%, 03/01/25 (±) | USD | 85 | 78,923 | |||||||
| PennyMac Corp. , 5.500%, 03/15/26 (±) | USD | 462 | 427,951 | |||||||
| PG&E Corp., 4.250%, 12/01/27 (±) | USD | 96 | 101,088 | |||||||
| Plug Power, Inc., 3.750%, 06/01/25 (±) | USD | 532 | 560,622 | |||||||
| Porch Group, Inc., 0.750%, 09/15/26 (±) | USD | 965 | 302,045 | |||||||
| PureCycle Technologies, Inc., 7.250%, 08/15/30 (±) | USD | 77 | 29,876 | |||||||
| Redfin Corp., 0.500%, 04/01/27 (±) | USD | 372 | 240,647 | |||||||
| Repay Holdings Corp., 0.000%, 02/01/26 (±) | USD | 518 | 442,890 | |||||||
| Repligen Corp., 1.000%, 12/15/28 (±) | USD | 528 | 591,888 | |||||||
| RingCentral, Inc., 0.000%, 03/15/26 (±) | USD | 286 | 249,178 | |||||||
| Seagate HDD Cayman, 3.500%, 06/01/28 (±) | USD | 48 | 58,152 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 25
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| Shift Technologies, Inc., 4.750%, 05/15/26 («), (±) | USD | 850 | $ | 13,813 | ||||||
| Shift4 Payments, Inc., 0.000%, 12/15/25 (±) | USD | 809 | 901,550 | |||||||
| SMART Global Holdings, Inc., 2.000%, 02/01/29 (±) | USD | 398 | 430,636 | |||||||
| Summit Hotel Properties, Inc., 1.500%, 02/15/26 (±) | USD | 192 | 171,168 | |||||||
| Transocean, Inc., 4.625%, 09/30/29 (±) | USD | 579 | 1,200,730 | |||||||
| Two Harbors Investment Corp., 6.250%, 01/15/26 (±) | USD | 95 | 87,875 | |||||||
| Varex Imaging Corp., 4.000%, 06/01/25 (±) | USD | 382 | 447,169 | |||||||
| Veeco Instruments, Inc.: | ||||||||||
| 3.500%, 01/15/25 (±) | USD | 63 | 86,950 | |||||||
| 3.750%, 06/01/27 (±) | USD | 130 | 296,400 | |||||||
| Vishay Intertechnology, Inc., 2.250%, 09/15/30 (±) | USD | 19 | 18,753 | |||||||
| Winnebago Industries, Inc., 1.500%, 04/01/25 (±) | USD | 485 | 609,402 | |||||||
| WisdomTree, Inc., 5.750%, 08/15/28 (±) | USD | 119 | 123,284 | |||||||
| Wolfspeed, Inc., 0.250%, 02/15/28 (±) | USD | 306 | 207,621 | |||||||
| 31,258,237 | ||||||||||
| Total Convertible Corporate Bonds (Cost $38,825,313) | 37,254,748 | |||||||||
| U.S. Treasury Securities | 74.2% | ||||||||||
| U.S. Treasury Bills: | ||||||||||
| 0.000%, 03/07/24 (±) | USD | 3,740 | 3,704,844 | |||||||
| 0.000%, 03/14/24 (±) | USD | 3,750 | 3,711,086 | |||||||
| 0.000%, 03/19/24 (±) | USD | 1,110 | 1,097,655 | |||||||
The accompanying notes are an integral part of these financial statements.
26 Annual Report
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| 0.000%, 03/21/24 (±) | USD | 6,915 | $ | 6,836,217 | ||||||
| 0.000%, 03/28/24 (±) | USD | 3,035 | 2,997,322 | |||||||
| 0.000%, 04/11/24 (±) | USD | 8,825 | 8,697,871 | |||||||
| U.S. Treasury Note, 4.125%, 10/31/27 (±) | USD | 656 | 660,126 | |||||||
| Total U.S. Treasury Securities (Cost $27,696,335) | 27,705,121 | |||||||||
| Number of | Exercise | Notional | Fair | |||||||||||||
| Description | Counterparty | Contracts | Price | Amount | Value | |||||||||||
| Purchased Options | 0.1% | ||||||||||||||||
| Call | ||||||||||||||||
| American Airlines Group, Inc., Expires 01/19/24 | MSC | 19 | $ | 16 | $ | 1,900 | $ | 76 | ||||||||
| Anywhere Real Estate, Inc., Expires 03/15/24 | MSC | 72 | 8 | 7,200 | 10,800 | |||||||||||
| Beauty Health Co., Expires 05/17/24 | MSC | 47 | 5 | 4,700 | 1,175 | |||||||||||
| DISH Network Corp., Expires 02/16/24 | MSC | 56 | 5 | 5,600 | 6,888 | |||||||||||
| Draftkings, Inc., Expires 01/19/24 | MSC | 5 | 40 | 500 | 90 | |||||||||||
| Jetblue Airways Corp., Expires 01/19/24 | MSC | 19 | 7 | 1,900 | 190 | |||||||||||
| Maxeon Solar Technologies, Ltd., Expires 02/16/24 | MSC | 29 | 8 | 2,900 | 3,335 | |||||||||||
| Maxeon Solar Technologies, Ltd., Expires 03/15/24 | MSC | 38 | 8 | 3,800 | 5,776 | |||||||||||
| Plug Power, Inc., Expires 01/19/24 | MSC | 48 | 6 | 4,800 | 768 | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 27
| Number of | Exercise | Notional | Fair | |||||||||||||
| Description | Counterparty | Contracts | Price | Amount | Value | |||||||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||||||||
| Redfin Corp., Expires 01/19/24 | MSC | 38 | $ | 13 | $ | 3,800 | $ | 722 | ||||||||
| Sirius XM Holdings,Inc., Expires 01/19/24 | MSC | 30 | 6 | 3,000 | 390 | |||||||||||
| Put | ||||||||||||||||
| Arbor Realty Trust, Inc., Expires 01/19/24 | MSC | 19 | 14 | 1,900 | 646 | |||||||||||
| Fisker, Inc., Expires 05/17/24 | MSC | 55 | 4 | 5,500 | 3,620 | |||||||||||
| Lucid Group, Inc., Expires 05/17/24 | MSC | 20 | 4 | 2,000 | 1,260 | |||||||||||
| Maxeon Solar Technologies, Ltd., Expires 06/21/24 | MSC | 50 | 3 | 5,000 | 2,000 | |||||||||||
| Norwegian CruiseLine Holdings, Expires 01/19/24 | MSC | 19 | 18 | 1,900 | 190 | |||||||||||
| Plug Power, Inc., Expires 01/19/24 | MSC | 96 | 4 | 9,600 | 960 | |||||||||||
| Snap, Inc., Expires 02/02/24 | MSC | 10 | 16 | 1,000 | 910 | |||||||||||
| Travere Therapeutics, Inc., Expires 01/19/24 | MSC | 9 | 5 | 900 | 45 | |||||||||||
| Total Purchased Options (Cost $33,123) | 39,841 | |||||||||||||||
| Fair | ||||||||||||||||
| Description | Shares | Value | ||||||||||||||
| Short-Term Investments | 5.0% | ||||||||||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $1,860,324) | 1,860,324 | $ | 1,860,324 | |||||||||||||
| Total Investments excluding Securities Sold Short | 179.5% (Cost $68,545,121) | $ | 66,994,722 | ||||||||||||||
The accompanying notes are an integral part of these financial statements.
28 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
| Securities Sold Short | (81.3)% | ||||||||
| Common Stocks | (47.9)% | ||||||||
| Canada | (1.7)% | ||||||||
| Dye & Durham Ltd. | (321 | ) | $ | (3,479 | ) | |||
| Ivanhoe Mines Ltd., Class A | (38,831 | ) | (376,573 | ) | ||||
| Lithium Americas Argentina Corp. | (7,851 | ) | (49,618 | ) | ||||
| Shopify, Inc., Class A | (1,701 | ) | (132,508 | ) | ||||
| SSR Mining, Inc. | (4,291 | ) | (46,171 | ) | ||||
| StorageVault Canada, Inc. | (6,443 | ) | (25,431 | ) | ||||
| (633,780 | ) | |||||||
| Hong Kong | (1.2)% | ||||||||
| Cathay Pacific Airways Ltd. | (432,800 | ) | (451,908 | ) | ||||
| Netherlands | (0.3)% | ||||||||
| Basic-Fit NV | (3,182 | ) | (99,678 | ) | ||||
| Pharming Group NV | (10,485 | ) | (11,921 | ) | ||||
| (111,599 | ) | |||||||
| Singapore | (0.1)% | ||||||||
| Sea Ltd. ADR | (961 | ) | (38,921 | ) | ||||
| United States | (44.6)% | ||||||||
| Air Transport Services Group, Inc. | (905 | ) | (15,937 | ) | ||||
| Airbnb, Inc., Class A | (71 | ) | (9,666 | ) | ||||
| Anywhere Real Estate, Inc. | (1,607 | ) | (13,033 | ) | ||||
| Apellis Pharmaceuticals, Inc. | (5,958 | ) | (356,646 | ) | ||||
| Arbor Realty Trust, Inc. REIT | (15,658 | ) | (237,688 | ) | ||||
| ATI, Inc. | (324 | ) | (14,732 | ) | ||||
| Bentley Systems, Inc., Class B | (173 | ) | (9,027 | ) | ||||
| Bill Holdings, Inc. | (1,499 | ) | (122,303 | ) | ||||
| BlackLine, Inc. | (1,219 | ) | (76,114 | ) | ||||
| Block, Inc. | (2,815 | ) | (217,740 | ) | ||||
| Bloom Energy Corp., Class A | (9,467 | ) | (140,112 | ) | ||||
The accompanying notes are an integral part of these financial statements.
Annual Report 29
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
| Bread Financial Holdings, Inc. | (7,053 | ) | $ | (232,326 | ) | |||
| Carnival Corp. | (43,975 | ) | (815,296 | ) | ||||
| Century Aluminum Co. | (10,779 | ) | (130,857 | ) | ||||
| Cerence, Inc. | (359 | ) | (7,058 | ) | ||||
| Chart Industries, Inc. | (9,618 | ) | (1,311,222 | ) | ||||
| Cheesecake Factory, Inc. | (355 | ) | (12,429 | ) | ||||
| Chefs’ Warehouse, Inc. | (8,068 | ) | (237,441 | ) | ||||
| Coherus Biosciences, Inc. | (14,844 | ) | (49,431 | ) | ||||
| Collegium Pharmaceutical, Inc. | (301 | ) | (9,265 | ) | ||||
| CONMED Corp. | (1,148 | ) | (125,717 | ) | ||||
| CSG Systems International, Inc. | (753 | ) | (40,067 | ) | ||||
| Danimer Scientific, Inc. | (18,193 | ) | (18,557 | ) | ||||
| Datadog, Inc., Class A | (2,597 | ) | (315,224 | ) | ||||
| Desktop Metal, Inc., Class A | (155,757 | ) | (116,973 | ) | ||||
| DigitalOcean Holdings, Inc. | (758 | ) | (27,811 | ) | ||||
| Echostar Corp., Class A | (5,290 | ) | (30,523 | ) | ||||
| Dynavax Technologies Corp. | (10,660 | ) | (149,027 | ) | ||||
| Eagle Bulk Shipping, Inc. | (32,528 | ) | (1,802,051 | ) | ||||
| Encore Capital Group, Inc. | (5,884 | ) | (298,613 | ) | ||||
| Enphase Energy, Inc. | (318 | ) | (42,020 | ) | ||||
| Envestnet, Inc. | (213 | ) | (10,548 | ) | ||||
| Etsy, Inc. | (242 | ) | (19,614 | ) | ||||
| Evolent Health, Inc., Class A | (3,703 | ) | (122,310 | ) | ||||
| Expedia Group, Inc. | (540 | ) | (81,967 | ) | ||||
| EZCORP, Inc. Class A | (56,517 | ) | (493,959 | ) | ||||
| Fisker, Inc. | (300 | ) | (525 | ) | ||||
| Five9, Inc. | (180 | ) | (14,164 | ) | ||||
| Green Plains, Inc. | (5,348 | ) | (134,877 | ) | ||||
| Greenbrier Cos., Inc. | (7,360 | ) | (325,165 | ) | ||||
| Guess?, Inc. | (10,623 | ) | (244,966 | ) | ||||
| Guidewire Software, Inc. | (3,002 | ) | (327,338 | ) | ||||
| Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | (3,910 | ) | (107,838 | ) | ||||
| Harmonic, Inc. | (6,725 | ) | (87,694 | ) | ||||
| Health Catalyst, Inc. | (826 | ) | (7,649 | ) | ||||
| HubSpot, Inc. | (103 | ) | (59,796 | ) | ||||
| I3 Verticals, Inc., Class A | (613 | ) | (12,977 | ) | ||||
| Innoviva, Inc. | (1,731 | ) | (27,765 | ) | ||||
The accompanying notes are an integral part of these financial statements.
30 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||
| Inotiv, Inc. | (8,219 | ) | $ | (30,164 | ) | |||
| Insmed, Inc. | (4,979 | ) | (154,299 | ) | ||||
| Insulet Corp. | (564 | ) | (122,377 | ) | ||||
| Karyopharm Therapeutics, Inc. | (1,972 | ) | (1,706 | ) | ||||
| LCI Industries | (432 | ) | (54,307 | ) | ||||
| Live Nation Entertainment, Inc. | (3,112 | ) | (291,283 | ) | ||||
| Livent Corp. | (41,911 | ) | (753,560 | ) | ||||
| Marcus Corp. | (34,937 | ) | (509,381 | ) | ||||
| Marriott Vacations Worldwide Corp. | (491 | ) | (41,681 | ) | ||||
| Match Group, Inc. | (1,755 | ) | (64,057 | ) | ||||
| Maxeon Solar Technologies, Ltd. | (1,291 | ) | (9,256 | ) | ||||
| Mesa Laboratories, Inc. | (188 | ) | (19,697 | ) | ||||
| Mirum Pharmaceuticals, Inc. | (458 | ) | (13,520 | ) | ||||
| Mitek Systems, Inc. | (2,656 | ) | (34,634 | ) | ||||
| Model N, Inc. | (801 | ) | (21,571 | ) | ||||
| MongoDB, Inc. | (467 | ) | (190,933 | ) | ||||
| National Vision Holdings, Inc. | (1,029 | ) | (21,537 | ) | ||||
| NeoGenomics, Inc. | (665 | ) | (10,760 | ) | ||||
| Norwegian Cruise Line Holdings Ltd. | (25,519 | ) | (511,401 | ) | ||||
| Pacira BioSciences, Inc. | (963 | ) | (32,492 | ) | ||||
| Pebblebrook Hotel Trust REIT | (2,978 | ) | (47,588 | ) | ||||
| Penn Entertainment, Inc. | (1,966 | ) | (51,155 | ) | ||||
| PennyMac Mortgage Investment Trust | (4,528 | ) | (67,694 | ) | ||||
| PetIQ, Inc. | (503 | ) | (9,934 | ) | ||||
| PG&E Corp. | (2,048 | ) | (36,925 | ) | ||||
| Plug Power, Inc. | (100,381 | ) | (451,714 | ) | ||||
| Porch Group, Inc. | (10,765 | ) | (33,156 | ) | ||||
| PureCycle Technologies, Inc. | (5,196 | ) | (21,044 | ) | ||||
| Q2 Holdings, Inc. | (224 | ) | (9,724 | ) | ||||
| Redfin Corp. | (809 | ) | (8,349 | ) | ||||
| Repay Holdings Corp. | (2,989 | ) | (25,526 | ) | ||||
| Repligen Corp. | (1,936 | ) | (348,093 | ) | ||||
| Seagate Technology Holdings PLC | (395 | ) | (33,721 | ) | ||||
| Shift4 Payments, Inc., Class A | (6,060 | ) | (450,500 | ) | ||||
| SMART Global Holdings, Inc. | (14,610 | ) | (276,567 | ) | ||||
| Snap, Inc., Class A | (13,749 | ) | (232,771 | ) | ||||
| SoFi Technologies, Inc. | (650 | ) | (6,467 | ) | ||||
The accompanying notes are an integral part of these financial statements.
Annual Report 31
| Fair | ||||||||||
| Description | Shares | Value | ||||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| Spotify Technology SA | (34 | ) | $ | (6,389 | ) | |||||
| Summit Hotel Properties, Inc. REIT | (6,076 | ) | (40,831 | ) | ||||||
| TechTarget, Inc. | (24 | ) | (837 | ) | ||||||
| Topgolf Callaway Brands Corp. | (3,158 | ) | (45,286 | ) | ||||||
| Transocean Ltd. | (153,759 | ) | (976,370 | ) | ||||||
| Travere Therapeutics, Inc. | (2,709 | ) | (24,354 | ) | ||||||
| Varex Imaging Corp. | (11,938 | ) | (244,729 | ) | ||||||
| Veeco Instruments, Inc. | (10,918 | ) | (338,786 | ) | ||||||
| Vishay Intertechnology, Inc. | (379 | ) | (9,085 | ) | ||||||
| Winnebago Industries, Inc. | (6,228 | ) | (453,897 | ) | ||||||
| WisdomTree, Inc. | (7,533 | ) | (52,204 | ) | ||||||
| Wolfspeed, Inc. | (1,392 | ) | (60,566 | ) | ||||||
| Zscaler, Inc. | (1,422 | ) | (315,058 | ) | ||||||
| (16,631,994 | ) | |||||||||
| Total Common Stocks (Proceeds $17,037,283) | (17,868,202 | ) | ||||||||
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Convertible Corporate Bonds | (0.7)% | ||||||||||
| United States | (0.7)% | ||||||||||
| DISH Network Corp. 0.000%, 12/15/25 | USD | (99 | ) | $ | (61,875 | ) | ||||
| Southwest Airlines Co. 1.250%, 05/01/25 | USD | (198 | ) | $ | (200,822 | ) | ||||
| (262,697 | ) | |||||||||
| Total Convertible Corporate Bonds (Proceeds $240,488) | (262,697 | ) | ||||||||
The accompanying notes are an integral part of these financial statements.
32 Annual Report
| Fair | ||||||||||
| Description | Shares | Value | ||||||||
| Lazard Enhanced Opportunities Portfolio (continued) | ||||||||||
| Exchange-Traded Funds | (3.3)% | ||||||||||
| iShares iBoxx $ High Yield Corporate Bond ETF | (5,335 | ) | $ | (412,876 | ) | |||||
| SPDR S&P 500 ETF Trust | (1,704 | ) | (809,928 | ) | ||||||
| (Proceeds $1,202,905) | (1,222,804 | ) | ||||||||
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| U.S. Treasury Securities | (29.4)% | ||||||||||
| U.S. Treasury Bills, 0.000%, 01/09/24 (Proceeds $10,987,136) | USD | (11,000 | ) | $ | (10,988,783 | ) | ||||
| Total Securities Sold Short (Proceeds $29,467,812) | (30,342,486 | ) | ||||||||
| Total Investments | 98.2% (Cost and short proceeds $39,077,309) (») | 36,652,236 | |||||||||
| Cash and Other Assets in Excess of Liabilities | 1.8% | 680,825 | |||||||||
| Net Assets | 100.0% | $ | 37,333,061 | ||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 33
Lazard Enhanced Opportunities Portfolio (continued)
Forward Currency Contracts open at December 31, 2023:
| Currency | Currency | Settlement | Unrealized | ||||||||||||
| Purchased | Quantity | Sold | Quantity | Counterparty | Date | Depreciation | |||||||||
| USD | 57,103 | AUD | 84,000 | SSB | 03/26/24 | $ | 281 | ||||||||
| USD | 511,518 | CAD | 680,000 | SSB | 03/26/24 | 2,253 | |||||||||
| USD | 1,505,186 | EUR | 1,365,000 | SSB | 03/26/24 | 6,717 | |||||||||
| USD | 325,326 | HKD | 2,537,000 | SSB | 03/26/24 | 187 | |||||||||
| Total gross unrealized depreciation on Forward Currency Contracts | $ | 9,438 | |||||||||||||
Written Options open at December 31, 2023:
| Number of | Strike | Expiration | Notional | Fair | ||||||||||||||||||||
| Description | Counterparty | Contracts | Price | Date | Amount | Premiums | Value | |||||||||||||||||
| Put | ||||||||||||||||||||||||
| DISH Network Corp. | MSC | 56 | $4.5 | 03/15/24 | $ | 5,600 | $ | 3,091 | $ | (2,240 | ) | |||||||||||||
| Maxeon Solar Technologies, Ltd. | MSC | 29 | 5 | 02/16/24 | 2,900 | 1,454 | (1,102 | ) | ||||||||||||||||
| Maxeon Solar Technologies, Ltd. MSC | 19 | 5 | 03/15/24 | 1,900 | 1,335 | (1,900 | ) | |||||||||||||||||
| Total Written Options | 104 | $ | 5,880 | $ | (5,242 | ) | ||||||||||||||||||
Total Return Swap Agreements open at December 31, 2023:
| Notional | Expiration | Unrealized | Unrealized | |||||||||||||||||||
| Currency | Counterparty | Amount | Date | Reference Entity^ | Rate | Appreciation | Depreciation | |||||||||||||||
| Long Position Contract | ||||||||||||||||||||||
| USD | NIP | $ | 113,400 | 11/30/27 | Anywhere Real Estate Group LLC 0.250%, 06/15/26 | 5.32 | % | $ | 4,132 | $ | — | |||||||||||
| USD | NIP | 934,544 | 11/30/27 | ATI, Inc., 3.500%, 06/15/25 | 5.32 | 157,128 | — | |||||||||||||||
| USD | BNP | 171,810 | 10/17/24 | Beauty Health Co., 1.250%, 10/01/26 | 5.32 | 22,285 | — | |||||||||||||||
| USD | BNP | 472,994 | 10/17/24 | Blackline, Inc., 0.000%, 03/15/26 | 5.32 | 20,559 | — | |||||||||||||||
| USD | NIP | 823,241 | 11/30/27 | Block, Inc., 0.125%, 03/01/25 | 5.32 | 48,686 | — | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
34 Annual Report
Lazard Enhanced Opportunities Portfolio (continued)
| Notional | Expiration | Unrealized | Unrealized | |||||||||||||||||||
| Currency | Counterparty | Amount | Date | Reference Entity^ | Rate | Appreciation | Depreciation | |||||||||||||||
| USD | BNP | $ | 225,870 | 10/17/24 | Cheesecake Factory Inc., 0.375%, 06/15/26 | 5.32 | % | $ | 4,885 | $ | — | |||||||||||
| USD | NIP | 248,128 | 11/30/27 | Cloudflare, Inc., 0.0005, 08/15/26 | 5.32 | 11,576 | — | |||||||||||||||
| USD | BNP | 496,381 | 10/17/24 | Collegium Pharmaceutical, Inc., 2.875%, 02/15/26 | 5.32 | 68,044 | — | |||||||||||||||
| USD | NIP | 52,895 | 11/30/27 | Cutera, Inc., 2.250%, 06/01/28 | 5.32 | — | 30,845 | |||||||||||||||
| USD | NIP | 1,277,807 | 11/30/27 | Datadog, Inc., 0.125%, 06/15/25 | 5.32 | 253,486 | — | |||||||||||||||
| USD | NIP | 167,435 | 11/30/27 | DISH Network Corp., 3.375%, 08/15/26 | 5.32 | — | 17,635 | |||||||||||||||
| USD | NIP | 482,160 | 11/30/27 | DocuSign, Inc., 0.000%, 01/15/24 | 5.32 | 9,851 | — | |||||||||||||||
| USD | NIP | 1,177,115 | 11/30/27 | Dynavax Technologies Corp., 2.500%, 05/15/26 | 5.32 | 41,484 | — | |||||||||||||||
| USD | BNP | 470,113 | 10/17/24 | Encore Capital Group, Inc., 3.250%, 10/01/25 | 5.32 | — | 49,537 | |||||||||||||||
| USD | BNP | 237,503 | 10/17/24 | Etsy, Inc., 0.125%, 10/01/26 | 5.32 | — | 83,954 | |||||||||||||||
| USD | BNP | 712,754 | 10/17/24 | Evolent Health, Inc., 1.500%, 10/15/25 | 5.32 | 32,482 | — | |||||||||||||||
| USD | BNP | 1,113,474 | 10/17/24 | Five9, Inc., 0.500%, 06/01/25 | 5.32 | 18,882 | — | |||||||||||||||
| USD | NIP | 639,450 | 11/30/27 | Fiverr International, Ltd., 0.000%, 11/01/25 | 5.32 | 16,979 | — | |||||||||||||||
| USD | BNP | 22,398 | 10/17/24 | Granite Construction, Inc., 3.750%, 05/15/28 | 5.32 | 1,867 | — | |||||||||||||||
| USD | BNP | 187,890 | 10/17/24 | HAT Holdings I LLC / HAT Holdings II LLC 0.000%, 05/01/25 | 5.32 | 11,336 | — | |||||||||||||||
| USD | NIP | 540,689 | 11/30/27 | Health Catalyst, Inc. | 5.32 | 10,831 | — | |||||||||||||||
| USD | NIP | 1,228,430 | 11/30/27 | HubSpot, Inc., 0.375%, 06/01/25 | 5.32 | 145,551 | — | |||||||||||||||
| USD | BNP | 559,165 | 10/17/24 | Innoviva, Inc., 2.125%, 03/15/28 | 5.32 | 31,392 | — | |||||||||||||||
| USD | BNP | 762,464 | 10/17/24 | Kaman Corp., 3.250%, 05/01/24 | 5.32 | 3,886 | — | |||||||||||||||
| USD | NIP | 734,918 | 11/30/27 | LCI Industries 1.125%, 05/15/26 | 5.32 | 31,432 | — | |||||||||||||||
| USD | NIP | 590,707 | 11/30/27 | MannKind Corp., 2.500%, 03/01/26 | 5.32 | — | 97,235 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 35
Lazard Enhanced Opportunities Portfolio (continued)
| Notional | Expiration | Unrealized | Unrealized | |||||||||||||||||||
| Currency | Counterparty | Amount | Date | Reference Entity^ | Rate | Appreciation | Depreciation | |||||||||||||||
| USD | BNP | $ | 251,416 | 10/17/24 | Marriott Vacations Worldwide Corp. | 5.32 | % | $ | — | $ | 8,583 | |||||||||||
| USD | BNP | 511,148 | 10/17/24 | Marriott Vacations Worldwide Corp., 0.000%, 01/15/26 | 5.32 | — | 11,370 | |||||||||||||||
| USD | BNP | 877,014 | 10/17/24 | Maxeon Solar Technologies, Ltd., 6.500%, 07/15/25 | 5.32 | — | 445,577 | |||||||||||||||
| USD | BNP | 395,689 | 10/17/24 | Mitek Systems, Inc., 0.750%, 02/01/26 | 5.32 | 29,936 | — | |||||||||||||||
| USD | BOA | 1,494,361 | 08/15/24- 12/02/24 | MongoDB, Inc., 0.250%, 01/15/26 | 5.32 | 112,384 | — | |||||||||||||||
| USD | NIP | 471,924 | 11/30/27 | National Vision Holdings, Inc., 2.500%, 05/15/25 | 5.32 | 5,688 | — | |||||||||||||||
| USD | BNP | 950,001 | 10/17/24 | NCL Corp., Ltd., 5.275%, 08/01/25 | 5.32 | 103,583 | — | |||||||||||||||
| USD | BNP | 273,650 | 10/17/24 | NCL Corp., Ltd., 6.000%, 05/15/24 | 5.32 | 59,928 | — | |||||||||||||||
| USD | BNP | 350,514 | 10/17/24 | NCL Corp., Ltd., 1.125%, 02/15/27 | 5.32 | 68,139 | — | |||||||||||||||
| USD | BNP | 44,347 | 10/17/24 | NCL Corp., Ltd., 2.500%, 02/15/27 | 5.32 | 7,408 | — | |||||||||||||||
| USD | NIP | 353,402 | 11/30/27 | NuVasive, Inc., 0.375%, 03/15/25 | 5.32 | — | 1,007 | |||||||||||||||
| USD | BNP | 660,512 | 10/17/24 | Pebblebrook Hotel Trust 1.750%, 12/15/26 | 5.32 | 23,727 | — | |||||||||||||||
| USD | NIP | 548,116 | 11/30/27 | Pegasystems, Inc., 0.750%, 03/01/25 | 5.32 | 6,199 | — | |||||||||||||||
| USD | NIP | 699,282 | 11/30/27 | Penn Entertainment, Inc., 2.750%, 05/15/26 | 5.32 | 57,318 | — | |||||||||||||||
| USD | BNP | 433,417 | 10/17/24 | PetIQ, Inc., 4.000%, 06/01/26 | 5.32 | 28,875 | — | |||||||||||||||
| USD | NIP | 644,501 | 11/30/27 | Q2 Holdings, Inc., 0.750%, 06/01/26 | 5.32 | 20,745 | — | |||||||||||||||
| USD | NIP | 355,299 | 11/30/27 | Q2 Holdings, Inc., 0.125%, 11/15/25 | 5.32 | 6,845 | — | |||||||||||||||
| USD | NIP | 434,886 | 11/30/27 | Snap, Inc., 0.750%, 08/01/26 | 5.32 | 77,154 | — | |||||||||||||||
| USD | NIP | 514,209 | 11/30/27 | Snap, Inc., 0.250%, 05/01/25 | 5.32 | 49,695 | — | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
36 Annual Report
Lazard Enhanced Opportunities Portfolio (continued)
| Notional | Expiration | Unrealized | Unrealized | |||||||||||||||||||
| Currency | Counterparty | Amount | Date | Reference Entity^ | Rate | Appreciation | Depreciation | |||||||||||||||
| USD | NIP | $ | 577,019 | 11/30/27 | Snap, Inc., 0.125%, 03/01/28 | 5.32 | % | $ | 65,173 | $ | — | |||||||||||
| USD | BNP | 153,464 | 10/17/24 | SoFi Technologies, Inc., 0.000%, 10/15/26 | 5.32 | 14,143 | — | |||||||||||||||
| USD | BNP | 213,897 | 10/17/24 | Spotify USA, Inc., 0.000%, 03/15/26 | 5.32 | 4,963 | — | |||||||||||||||
| USD | BNP | 14,758 | 10/17/24 | TechTarget, Inc., 0.000%, 12/15/26 | 5.32 | 1,107 | — | |||||||||||||||
| USD | NIP | 596,290 | 11/30/27 | Topgolf Callaway Brands Corp., 2.750%, 05/01/26 | 5.32 | — | 120,951 | |||||||||||||||
| USD | NIP | 419,756 | 11/30/27 | Travere Therapeutics, Inc., 2.250%, 03/01/29 | 5.32 | — | 114,176 | |||||||||||||||
| USD | NIP | 709,970 | 11/30/27 | Unity Software, Inc., 0.0005, 11/15/26 | 5.32 | 35,742 | — | |||||||||||||||
| USD | NIP | 32,155 | 11/30/27 | Veeco Instruments, Inc., 2.875%, 06/01/29 | 5.32 | 2,432 | — | |||||||||||||||
| USD | NIP | 668,591 | 11/30/27 | Zscaler, Inc., 0.125%, 07/01/25 | 5.32 | 233,065 | — | |||||||||||||||
| Short Position Contract | ||||||||||||||||||||||
| USD | NIP | 9,751 | 11/30/27 | 2U, Inc., 2.250%, 05/01/25 | 5.32 | $ | 1,519 | $ | — | |||||||||||||
| USD | BNP | 877 | 10/17/24 | Anywhere Real Estate, Inc. | 5.32 | — | 502 | |||||||||||||||
| USD | NIP | 3,970 | 11/30/27 | Anywhere Real Estate, Inc. | 5.32 | — | 2,332 | |||||||||||||||
| USD | BOA | 2,825 | 05/31/24 | Arbor Realty Trust, Inc. | 5.32 | — | 576 | |||||||||||||||
| USD | NIP | 885,030 | 11/30/27 | ATI, Inc. | 5.32 | — | 169,283 | |||||||||||||||
| USD | BNP | 30,885 | 10/17/24 | Blackline, Inc. | 5.32 | — | 5,580 | |||||||||||||||
| USD | BNP | 9,653 | 10/17/24 | Cerence, Inc. | 5.32 | 2,359 | — | |||||||||||||||
| USD | BNP | 13,835 | 10/17/24 | Cheesecake Factory Inc. | 5.32 | — | 905 | |||||||||||||||
| USD | NIP | 34,083 | 11/30/27 | Cloudflare, Inc. | 5.32 | — | 7,630 | |||||||||||||||
| USD | BNP | 58,278 | 10/17/24 | Coherus Biosciences, Inc. | 5.32 | 7,342 | — | |||||||||||||||
| USD | BNP | 263,253 | 10/17/24 | Collegium Pharmaceutical, Inc. | 5.32 | — | 73,172 | |||||||||||||||
| USD | NIP | 15,255 | 11/30/27 | Cutera, Inc. | 5.32 | 8,776 | — | |||||||||||||||
| USD | NIP | 615,440 | 11/30/27 | Datadog, Inc. | 5.32 | — | 222,932 | |||||||||||||||
| USD | NIP | 694,128 | 11/30/27 | Dynavax Technologies Corp. | 5.32 | — | 103,235 | |||||||||||||||
| USD | NIP | 12,948 | 11/30/27 | Echostar Corp. | 5.32 | — | — | |||||||||||||||
| USD | BNP | 366,681 | 10/17/24 | Encore Capital Group, Inc. | 5.32 | 40,206 | — | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 37
Lazard Enhanced Opportunities Portfolio (continued)
| Notional | Expiration | Unrealized | Unrealized | |||||||||||||||||||
| Currency | Counterparty | Amount | Date | Reference Entity^ | Rate | Appreciation | Depreciation | |||||||||||||||
| USD | NIP | $ | 225,030 | 11/30/27 | Envista Holdings Corp., 1.750%, 08/15/28 | 5.32 | % | $ | 7,260 | $ | — | |||||||||||
| USD | BNP | 113,464 | 10/17/24 | Etsy, Inc. | 5.32 | 49,840 | — | |||||||||||||||
| USD | BNP | 265,971 | 10/17/24 | Evolent Health, Inc. | 5.32 | — | 48,904 | |||||||||||||||
| USD | BOA | 108,518 | 05/31/24 | Fisker, Inc. | 5.32 | 78,278 | — | |||||||||||||||
| USD | BNP | 36,386 | 10/17/24 | Fisker, Inc. | 5.32 | 13,941 | — | |||||||||||||||
| USD | BNP | 70,376 | 10/17/24 | Five9, Inc. | 5.32 | — | 15,711 | |||||||||||||||
| USD | NIP | 27,264 | 11/30/27 | Five9, Inc. | 5.32 | — | 8,540 | |||||||||||||||
| USD | BOA | 147,855 | 12/19/24- 12/23/24 | Gol Linhas Aereas Inteligentes SA | 5.32 | — | 341 | |||||||||||||||
| USD | BNP | 15,081 | 10/17/24 | Granite Construction, Inc. | 5.32 | — | 1,542 | |||||||||||||||
| USD | BOA | 8,830 | 05/31/24 | Greenbrier Cos. Inc. | 5.32 | — | 5,528 | |||||||||||||||
| USD | BNP | 157,579 | 10/17/24 | Guess?, Inc. | 5.32 | — | 8,246 | |||||||||||||||
| USD | BNP | 412,971 | 10/17/24 | Harmonic, Inc. | 5.32 | 59,366 | — | |||||||||||||||
| USD | NIP | 7,619 | 11/30/27 | Health Catalyst, Inc. | 5.32 | — | 678 | |||||||||||||||
| USD | NIP | 1,097,359 | 11/30/27 | HubSpot, Inc. | 5.32 | — | 139,771 | |||||||||||||||
| USD | BNP | 20,241 | 10/17/24 | I3 Verticals, Inc. | 5.32 | 1,485 | — | |||||||||||||||
| USD | BNP | 161,224 | 10/17/24 | Innoviva, Inc. | 5.32 | — | 27,133 | |||||||||||||||
| USD | BOA | 346,538 | 05/31/24 | iShares iBoxx $ High Yield Corporate Bond ETF | 5.32 | — | 15,337 | |||||||||||||||
| USD | BNP | 7,558 | 10/17/24 | Karyopharm Therapeutics, Inc. | 5.32 | 4,886 | — | |||||||||||||||
| USD | NIP | 229,174 | 11/30/27 | LCI Industries | 5.32 | — | 15,835 | |||||||||||||||
| USD | NIP | 80,625 | 11/30/27 | LivePerson, Inc., 0.000%, 12/15/26 | 5.32 | — | 3,225 | |||||||||||||||
| USD | NIP | 306,076 | 11/30/27 | MannKind Corp. | 5.32 | 95,069 | — | |||||||||||||||
| USD | BNP | 66,324 | 10/17/24 | Marriott Vacations Worldwide Corp. | 5.32 | 10,908 | — | |||||||||||||||
| USD | BNP | 749,301 | 10/17/24 | Maxeon Solar Technologies, Ltd. | 5.32 | 549,309 | — | |||||||||||||||
| USD | BNP | 78,069 | 10/17/24 | Mitek Systems, Inc. | 5.32 | — | 18,701 | |||||||||||||||
| USD | BOA | 1,002,893 | 05/09/24- 12/02/24 | MongoDB, Inc. | 5.32 | — | 263,724 | |||||||||||||||
| USD | BOA | 19,450 | 10/16/24- 11/04/24 | National Vision Holdings, Inc. | 5.32 | — | 5,687 | |||||||||||||||
| USD | BNP | 7,678 | 10/17/24 | National Vision Holdings, Inc. | 5.32 | — | 1,259 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
38 Annual Report
Lazard Enhanced Opportunities Portfolio (concluded)
| Notional | Expiration | Unrealized | Unrealized | |||||||||||||||||||
| Currency | Counterparty | Amount | Date | Reference Entity^ | Rate | Appreciation | Depreciation | |||||||||||||||
| USD | NIP | $ | 108,753 | 11/30/27 | National Vision Holdings, Inc. | 5.32 | % | $ | 42,845 | $ | — | |||||||||||
| USD | BNP | 36,381 | 10/17/24 | NeoGenomics, Inc. | 5.32 | 3,697 | — | |||||||||||||||
| USD | BNP | 577,613 | 10/17/24 | Norwegian Cruise Line Holdings, Ltd. | 5.32 | — | 145,630 | |||||||||||||||
| USD | BNP | 14,199 | 10/17/24 | Pacira BioSciences, Inc. | 5.32 | — | 579 | |||||||||||||||
| USD | BNP | 167,990 | 10/17/24 | Pebblebrook Hotel Trust | 5.32 | — | 26,048 | |||||||||||||||
| USD | NIP | 390,357 | 11/30/27 | Penn Entertainment, Inc. | 5.32 | — | 47,637 | |||||||||||||||
| USD | BNP | 17,846 | 10/17/24 | PennyMac Mortgage Investment Trust | 5.32 | — | 2,938 | |||||||||||||||
| USD | BNP | 102,441 | 10/17/24 | PetIQ, Inc. | 5.32 | — | 45,191 | |||||||||||||||
| USD | BNP | 37,579 | 10/17/24 | Q2 Holdings, Inc. | 5.32 | — | 1,794 | |||||||||||||||
| USD | NIP | 75,513 | 11/30/27 | Q2 Holdings, Inc. | 5.32 | — | 26,978 | |||||||||||||||
| USD | BNP | 1,281 | 10/17/24 | Redfin Corp. | 5.32 | — | 1,206 | |||||||||||||||
| USD | BNP | 9,290 | 10/17/24 | Shopify, Inc. | 5.32 | — | 2,784 | |||||||||||||||
| USD | NIP | 197,138 | 11/30/27 | Snap, Inc. | 5.32 | — | 115,915 | |||||||||||||||
| USD | BNP | 30,826 | 10/17/24 | SoFi Technologies, Inc. | 5.32 | — | 6,516 | |||||||||||||||
| USD | BNP | 2,734 | 10/17/24 | Spotify Technology SA | 5.32 | 103 | — | |||||||||||||||
| USD | NIP | 43,966 | 11/30/27 | Stem, Inc., 0.500%, 12/01/28 | 5.32 | — | 1,170 | |||||||||||||||
| USD | NIP | 248,856 | 11/30/27 | Topgolf Callaway Brands Corp. | 5.32 | 78,110 | — | |||||||||||||||
| USD | BNP | 1,330 | 10/17/24 | Travere Therapeutics, Inc. | 5.32 | 763 | — | |||||||||||||||
| USD | NIP | 120,926 | 11/30/27 | Travere Therapeutics, Inc. | 5.32 | 51,542 | — | |||||||||||||||
| USD | NIP | 17,317 | 11/30/27 | Veeco Instruments, Inc. | 5.32 | — | 6,093 | |||||||||||||||
| AUD | BNP | 1,343 | 10/17/24 | Zip Co., Ltd. | 4.34 | — | 969 | |||||||||||||||
| AUD | NIP | 20,887 | 11/30/27 | Zip Co., Ltd. | 4.34 | — | 14,380 | |||||||||||||||
| USD | NIP | 271,776 | 11/30/27 | Zscaler, Inc. | 5.32 | — | 169,571 | |||||||||||||||
| Total gross unrealized appreciation/depreciation on Total Return Swap Agreements | $ | 3,068,607 | $ | 2,762,578 | ||||||||||||||||||
| ^ | For long position contracts the Portfolio receives appreciation and dividends/interest and pays depreciation of the referenced entity as well as financing charges at the referenced rate. For short position contracts, the Portfolio pays appreciation and dividends/interest and receives depreciation of the referenced entity as well as financing charges at the referenced rate. |
The accompanying notes are an integral part of these financial statements.
Annual Report 39
The accompanying notes are an integral part of these financial statements.
40 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| International Petroleum Corp. (*) | 737 | $ | 8,857 | |||||
| Loblaw Cos. Ltd. | 166 | 16,071 | ||||||
| Manulife Financial Corp. | 2,451 | 54,161 | ||||||
| Metro, Inc. | 355 | 18,376 | ||||||
| Parex Resources, Inc. | 288 | 5,423 | ||||||
| Teck Resources Ltd., Class B | 143 | 6,045 | ||||||
| Teekay Tankers Ltd., Class A | 100 | 4,997 | ||||||
| Toronto-Dominion Bank | 274 | 17,706 | ||||||
| 223,030 | ||||||||
| China | 0.3% | ||||||||
| BOC Hong Kong Holdings Ltd. | 1,500 | 4,059 | ||||||
| NXP Semiconductors NV | 79 | 18,145 | ||||||
| Wilmar International Ltd. | 1,400 | 3,778 | ||||||
| 25,982 | ||||||||
| Denmark | 0.9% | ||||||||
| Carlsberg AS, Class B ADR | 436 | 10,911 | ||||||
| Novo Nordisk AS, Class B | 786 | 81,300 | ||||||
| 92,211 | ||||||||
| Finland | 0.1% | ||||||||
| Kone OYJ ADR | 389 | 9,710 | ||||||
| Nordea Bank Abp | 266 | 3,298 | ||||||
| 13,008 | ||||||||
| France | 1.4% | ||||||||
| BNP Paribas SA | 530 | 36,722 | ||||||
| Bureau Veritas SA ADR | 159 | 8,053 | ||||||
| Cie de Saint-Gobain SA | 33 | 2,440 | ||||||
| Cie Generale des Etablissements Michelin SCA | 145 | 5,210 | ||||||
| Legrand SA ADR | 466 | 9,688 | ||||||
| LVMH Moet Hennessy Louis Vuitton SE ADR | 81 | 13,159 | ||||||
| Orange SA | 1,576 | 17,929 | ||||||
| Pernod Ricard SA ADR | 257 | 9,072 | ||||||
| Societe Generale SA | 526 | 14,024 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 41
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Thales SA ADR | 448 | $ | 13,232 | |||||
| TotalEnergies SE | 49 | 3,329 | ||||||
| Vinci SA | 125 | 15,699 | ||||||
| 148,557 | ||||||||
| Germany | 0.8% | ||||||||
| Bayerische Motoren Werke AG | 204 | 22,690 | ||||||
| Beiersdorf AG | 37 | 5,544 | ||||||
| Commerzbank AG | 466 | 5,535 | ||||||
| Deutsche Bank AG | 785 | 10,714 | ||||||
| Infineon Technologies AG | 274 | 11,428 | ||||||
| Mercedes-Benz Group AG | 40 | 2,763 | ||||||
| Merck KGaA ADR | 279 | 8,908 | ||||||
| Talanx AG | 118 | 8,421 | ||||||
| TUI AG (*) | 556 | 4,337 | ||||||
| 80,340 | ||||||||
| Hong Kong | 0.3% | ||||||||
| AIA Group Ltd. ADR | 252 | 8,737 | ||||||
| Jardine Matheson Holdings Ltd. | 100 | 4,116 | ||||||
| Link REIT | 700 | 3,915 | ||||||
| Sun Hung Kai Properties Ltd. | 500 | 5,381 | ||||||
| Swire Pacific Ltd., Class A | 500 | 4,222 | ||||||
| WH Group Ltd. | 5,500 | 3,547 | ||||||
| 29,918 | ||||||||
| Israel | 0.1% | ||||||||
| Bezeq The Israeli Telecommunication Corp. Ltd. | 6,413 | 8,715 | ||||||
| Perion Network Ltd. (*) | 139 | 4,291 | ||||||
| 13,006 | ||||||||
| Italy | 0.7% | ||||||||
| Banco BPM SpA | 2,022 | 10,676 | ||||||
| BPER Banca | 1,186 | 3,964 | ||||||
| Ferrari NV | 29 | 9,774 | ||||||
| Intesa Sanpaolo SpA | 5,536 | 16,160 | ||||||
The accompanying notes are an integral part of these financial statements.
42 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Poste Italiane SpA | 911 | $ | 10,336 | |||||
| Saras SpA | 3,367 | 6,017 | ||||||
| Telecom Italia SpA (*) | 18,047 | 5,872 | ||||||
| UniCredit SpA | 484 | 13,130 | ||||||
| 75,929 | ||||||||
| Japan | 4.5% | ||||||||
| ANA Holdings, Inc. (*) | 200 | 4,334 | ||||||
| Central Japan Railway Co. | 300 | 7,607 | ||||||
| Chubu Electric Power Co., Inc. | 2,400 | 30,967 | ||||||
| Chugoku Electric Power Co., Inc. | 500 | 3,579 | ||||||
| Daiwa Securities Group, Inc. | 500 | 3,351 | ||||||
| East Japan Railway Co. | 200 | 11,506 | ||||||
| Electric Power Development Co. Ltd. | 400 | 6,538 | ||||||
| Ezaki Glico Co. Ltd. | 100 | 2,958 | ||||||
| Hachijuni Bank Ltd. | 1,500 | 8,340 | ||||||
| Honda Motor Co. Ltd. | 1,500 | 15,505 | ||||||
| Japan Post Bank Co. Ltd. | 1,500 | 15,270 | ||||||
| Japan Post Holdings Co. Ltd. | 2,900 | 25,881 | ||||||
| Japan Real Estate Investment Corp. REIT | 3 | 12,410 | ||||||
| Japan Tobacco, Inc. | 200 | 5,163 | ||||||
| KDDI Corp. | 300 | 9,524 | ||||||
| Kyoto Financial Group, Inc. | 400 | 6,224 | ||||||
| Kyushu Railway Co. | 400 | 8,805 | ||||||
| Lawson, Inc. | 300 | 15,484 | ||||||
| Mazda Motor Corp. | 500 | 5,304 | ||||||
| Mebuki Financial Group, Inc. | 1,200 | 3,640 | ||||||
| Mitsubishi Motors Corp. | 1,300 | 4,120 | ||||||
| Mizuho Financial Group, Inc. | 1,400 | 23,944 | ||||||
| MS&AD Insurance Group Holdings, Inc. | 200 | 7,849 | ||||||
| Nagoya Railroad Co. Ltd. | 200 | 3,203 | ||||||
| Nintendo Co. Ltd. ADR | 967 | 12,561 | ||||||
| Nisshinbo Holdings, Inc. | 1,300 | 10,535 | ||||||
| Ono Pharmaceutical Co. Ltd. | 1,700 | 30,364 | ||||||
| Osaka Gas Co. Ltd. | 800 | 16,697 | ||||||
| Otsuka Holdings Co. Ltd. | 1,300 | 48,656 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 43
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Rengo Co. Ltd. | 500 | $ | 3,329 | |||||
| Sega Sammy Holdings, Inc. | 500 | 6,973 | ||||||
| Seven & i Holdings Co. Ltd. | 100 | 3,960 | ||||||
| Shimano, Inc. ADR | 447 | 6,893 | ||||||
| Shizuoka Financial Group, Inc. | 800 | 6,768 | ||||||
| SoftBank Corp. | 1,400 | 17,448 | ||||||
| Sompo Holdings, Inc. | 200 | 9,766 | ||||||
| Subaru Corp. | 500 | 9,124 | ||||||
| Sumitomo Mitsui Financial Group, Inc. | 100 | 4,871 | ||||||
| Toho Co. Ltd. | 100 | 3,376 | ||||||
| Tokyo Gas Co. Ltd. | 900 | 20,632 | ||||||
| Tokyu Fudosan Holdings Corp. | 1,900 | 12,094 | ||||||
| Toyota Motor Corp. | 300 | 5,507 | ||||||
| Yamaguchi Financial Group, Inc. | 500 | 4,468 | ||||||
| 475,528 | ||||||||
| Netherlands | 0.6% | ||||||||
| ASM International NV | 24 | 12,461 | ||||||
| Eurocommercial Properties NV REIT | 401 | 9,872 | ||||||
| EXOR NV | 48 | 4,812 | ||||||
| Koninklijke Ahold Delhaize NV | 131 | 3,761 | ||||||
| Koninklijke KPN NV | 1,006 | 3,463 | ||||||
| NN Group NV | 112 | 4,431 | ||||||
| Wolters Kluwer NV ADR | 176 | 25,081 | ||||||
| 63,881 | ||||||||
| New Zealand | 0.1% | ||||||||
| Spark New Zealand Ltd. | 2,673 | 8,756 | ||||||
| Norway | 0.1% | ||||||||
| Orkla ASA | 551 | 4,272 | ||||||
| Singapore | 0.4% | ||||||||
| Jardine Cycle & Carriage Ltd. | 300 | 6,745 | ||||||
| Sembcorp Industries Ltd. | 4,400 | 17,663 | ||||||
| Singapore Airlines Ltd. | 1,100 | 5,452 | ||||||
| STMicroelectronics NV | 303 | 15,203 | ||||||
| 45,063 | ||||||||
The accompanying notes are an integral part of these financial statements.
44 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Spain | 0.3% | ||||||||
| Banco Bilbao Vizcaya Argentaria SA | 1,495 | $ | 13,622 | |||||
| Banco Santander SA | 1,028 | 4,291 | ||||||
| Iberdrola SA | 258 | 3,374 | ||||||
| Industria de Diseno Textil SA ADR | 580 | 12,696 | ||||||
| 33,983 | ||||||||
| Sweden | 0.5% | ||||||||
| Assa Abloy AB ADR | 675 | 9,706 | ||||||
| Epiroc AB ADR | 953 | 19,122 | ||||||
| Fastighets AB Balder, B Shares (*) | 1,519 | 10,848 | ||||||
| Hexagon AB ADR | 1,226 | 14,737 | ||||||
| 54,413 | ||||||||
| Switzerland | 0.6% | ||||||||
| ABB Ltd. ADR | 457 | 20,245 | ||||||
| Novartis AG | 132 | 13,328 | ||||||
| Swatch Group AG ADR | 946 | 12,828 | ||||||
| Swisscom AG | 24 | 14,442 | ||||||
| UBS Group AG | 196 | 6,087 | ||||||
| 66,930 | ||||||||
| United Kingdom | 1.7% | ||||||||
| AstraZeneca PLC | 99 | 13,334 | ||||||
| BAE Systems PLC | 802 | 11,347 | ||||||
| Barclays PLC | 2,804 | 5,462 | ||||||
| Centrica PLC | 2,229 | 3,988 | ||||||
| Coca-Cola Europacific Partners PLC | 218 | 14,549 | ||||||
| Diageo PLC ADR | 106 | 15,440 | ||||||
| Global Ship Lease, Inc., Class A | 241 | 4,777 | ||||||
| HSBC Holdings PLC | 1,874 | 15,136 | ||||||
| IG Group Holdings PLC | 443 | 4,315 | ||||||
| Investec PLC | 1,241 | 8,378 | ||||||
| Man Group PLC | 1,680 | 4,968 | ||||||
| RELX PLC | 222 | 8,805 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 45
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| RELX PLC ADR | 678 | $ | 26,889 | |||||
| Serco Group PLC | 1,546 | 3,183 | ||||||
| Standard Chartered PLC | 1,003 | 8,484 | ||||||
| Unilever PLC | 228 | 11,032 | ||||||
| Unilever PLC ADR | 372 | 18,035 | ||||||
| Vodafone Group PLC | 3,797 | 3,298 | ||||||
| 181,420 | ||||||||
| United States | 39.3% | ||||||||
| AbbVie, Inc. | 235 | 36,418 | ||||||
| Accenture PLC, Class A | 92 | 32,284 | ||||||
| Adobe, Inc. (*) | 118 | 70,399 | ||||||
| AES Corp. | 312 | 6,006 | ||||||
| Agree Realty Corp. | 258 | 16,241 | ||||||
| Allison Transmission Holdings, Inc. | 213 | 12,386 | ||||||
| Alnylam Pharmaceuticals, Inc. (*) | 20 | 3,828 | ||||||
| Alphabet, Inc., Class A (*) | 301 | 42,047 | ||||||
| Alphabet, Inc., Class C (*) | 792 | 111,617 | ||||||
| Altria Group, Inc. | 318 | 12,828 | ||||||
| Amazon.com, Inc. (*) | 413 | 62,751 | ||||||
| Amdocs Ltd. | 141 | 12,392 | ||||||
| Ameren Corp. | 125 | 9,042 | ||||||
| American Homes 4 Rent, Class A REIT | 104 | 3,740 | ||||||
| American International Group, Inc. | 42 | 2,846 | ||||||
| AMN Healthcare Services, Inc. (*) | 69 | 5,167 | ||||||
| Amphenol Corp., Class A | 223 | 22,106 | ||||||
| Aon PLC, Class A | 108 | 31,430 | ||||||
| Apple, Inc. | 1,111 | 213,901 | ||||||
| Applied Materials, Inc. | 57 | 9,238 | ||||||
| AptarGroup, Inc. | 49 | 6,057 | ||||||
| Arcosa, Inc. | 48 | 3,967 | ||||||
| Assurant, Inc. | 38 | 6,403 | ||||||
| AT&T, Inc. | 343 | 5,756 | ||||||
| Atmos Energy Corp. | 102 | 11,822 | ||||||
| Autodesk, Inc. (*) | 128 | 31,165 | ||||||
| Automatic Data Processing, Inc. | 26 | 6,057 | ||||||
The accompanying notes are an integral part of these financial statements.
46 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Avery Dennison Corp. | 47 | $ | 9,502 | |||||
| Axos Financial, Inc. (*) | 268 | 14,633 | ||||||
| Bank of America Corp. | 386 | 12,997 | ||||||
| Biogen, Inc. (*) | 23 | 5,952 | ||||||
| Booking Holdings, Inc. (*) | 7 | 24,831 | ||||||
| Booz Allen Hamilton Holding Corp. | 192 | 24,559 | ||||||
| BorgWarner, Inc. | 105 | 3,764 | ||||||
| Boston Scientific Corp. (*) | 73 | 4,220 | ||||||
| Brady Corp., Class A | 64 | 3,756 | ||||||
| Brighthouse Financial, Inc. (*) | 201 | 10,637 | ||||||
| Bristol-Myers Squibb Co. | 666 | 34,172 | ||||||
| Broadcom, Inc. | 61 | 68,091 | ||||||
| BRP, Inc. | 129 | 9,248 | ||||||
| Cadence Design Systems, Inc. (*) | 13 | 3,541 | ||||||
| Cal-Maine Foods, Inc. | 179 | 10,273 | ||||||
| Campbell Soup Co. | 90 | 3,891 | ||||||
| Cardinal Health, Inc. | 358 | 36,086 | ||||||
| Casey’s General Stores, Inc. | 15 | 4,121 | ||||||
| Caterpillar, Inc. | 125 | 36,959 | ||||||
| Cboe Global Markets, Inc. | 84 | 14,999 | ||||||
| CDW Corp. | 125 | 28,415 | ||||||
| Cencora, Inc. | 208 | 42,719 | ||||||
| Centene Corp. (*) | 167 | 12,393 | ||||||
| Charles Schwab Corp. | 208 | 14,310 | ||||||
| Charter Communications, Inc., Class A (*) | 22 | 8,551 | ||||||
| Chesapeake Energy Corp. | 57 | 4,386 | ||||||
| Chipotle Mexican Grill, Inc. (*) | 7 | 16,009 | ||||||
| Chubb Ltd. | 34 | 7,684 | ||||||
| Cigna Group | 87 | 26,052 | ||||||
| Cirrus Logic, Inc. (*) | 47 | 3,910 | ||||||
| Cisco Systems, Inc. | 993 | 50,166 | ||||||
| Clorox Co. | 59 | 8,413 | ||||||
| Coca-Cola Co. | 391 | 23,042 | ||||||
| Cognizant Technology Solutions Corp., Class A | 343 | 25,907 | ||||||
| Colgate-Palmolive Co. | 236 | 18,812 | ||||||
| Comcast Corp., Class A | 314 | 13,769 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 47
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Comfort Systems USA, Inc. | 22 | $ | 4,525 | |||||
| CommVault Systems, Inc. (*) | 70 | 5,589 | ||||||
| Concentrix Corp. | 45 | 4,419 | ||||||
| Consolidated Edison, Inc. | 196 | 17,830 | ||||||
| Constellation Brands, Inc., Class A | 42 | 10,153 | ||||||
| Corebridge Financial, Inc. | 1,060 | 22,960 | ||||||
| Coterra Energy, Inc. | 690 | 17,609 | ||||||
| CVS Health Corp. | 482 | 38,059 | ||||||
| Danaher Corp. | 89 | 20,589 | ||||||
| Darden Restaurants, Inc. | 34 | 5,586 | ||||||
| Dave & Buster’s Entertainment, Inc. (*) | 131 | 7,054 | ||||||
| DaVita, Inc. (*) | 88 | 9,219 | ||||||
| Deckers Outdoor Corp. (*) | 6 | 4,011 | ||||||
| Deere & Co. | 30 | 11,996 | ||||||
| Dell Technologies, Inc., Class C | 417 | 31,900 | ||||||
| DR Horton, Inc. | 87 | 13,222 | ||||||
| Eaton Corp. PLC | 25 | 6,020 | ||||||
| Electronic Arts, Inc. | 162 | 22,163 | ||||||
| Elevance Health, Inc. | 29 | 13,675 | ||||||
| Eli Lilly & Co. | 76 | 44,302 | ||||||
| Enact Holdings, Inc. | 136 | 3,929 | ||||||
| Entergy Corp. | 220 | 22,262 | ||||||
| EOG Resources, Inc. | 205 | 24,795 | ||||||
| Equinix, Inc. REIT | 3 | 2,416 | ||||||
| Equitable Holdings, Inc. | 551 | 18,348 | ||||||
| Estee Lauder Cos., Inc., Class A | 113 | 16,526 | ||||||
| Everest Group Ltd. | 22 | 7,779 | ||||||
| Expedia Group, Inc. (*) | 78 | 11,840 | ||||||
| FedEx Corp. | 52 | 13,154 | ||||||
| Fiserv, Inc. (*) | 225 | 29,889 | ||||||
| Fortinet, Inc. (*) | 50 | 2,926 | ||||||
| Freeport-McMoRan, Inc. | 110 | 4,683 | ||||||
| General Electric Co. | 94 | 11,997 | ||||||
| General Mills, Inc. | 205 | 13,354 | ||||||
| General Motors Co. | 82 | 2,945 | ||||||
| Gilead Sciences, Inc. | 328 | 26,571 | ||||||
| Global Payments, Inc. | 186 | 23,622 | ||||||
| Globe Life, Inc. | 174 | 21,179 | ||||||
The accompanying notes are an integral part of these financial statements.
48 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| GMS, Inc. (*) | 87 | $ | 7,171 | |||||
| GoDaddy, Inc., Class A (*) | 88 | 9,342 | ||||||
| GSK PLC | 1,015 | 18,748 | ||||||
| Gulfport Energy Corp. (*) | 45 | 5,994 | ||||||
| H&R Block, Inc. | 97 | 4,692 | ||||||
| Haemonetics Corp. (*) | 42 | 3,591 | ||||||
| Hartford Financial Services Group, Inc. | 50 | 4,019 | ||||||
| HCA Healthcare, Inc. | 80 | 21,654 | ||||||
| Hershey Co. | 91 | 16,966 | ||||||
| Hess Corp. | 32 | 4,613 | ||||||
| Host Hotels & Resorts, Inc. REIT | 253 | 4,926 | ||||||
| Humana, Inc. | 8 | 3,662 | ||||||
| Huron Consulting Group, Inc. (*) | 38 | 3,906 | ||||||
| Ingredion, Inc. | 35 | 3,799 | ||||||
| Intel Corp. | 165 | 8,291 | ||||||
| Intercontinental Exchange, Inc. | 197 | 25,301 | ||||||
| International Seaways, Inc. | 99 | 4,503 | ||||||
| Intuit, Inc. | 22 | 13,751 | ||||||
| Intuitive Surgical, Inc. (*) | 9 | 3,036 | ||||||
| IQVIA Holdings, Inc. (*) | 92 | 21,287 | ||||||
| J M Smucker Co. | 41 | 5,182 | ||||||
| Jackson Financial, Inc., Class A | 93 | 4,762 | ||||||
| Johnson & Johnson | 187 | 29,310 | ||||||
| Juniper Networks, Inc. | 143 | 4,216 | ||||||
| Kellanova | 171 | 9,561 | ||||||
| Kilroy Realty Corp. REIT | 73 | 2,908 | ||||||
| Kimberly-Clark Corp. | 251 | 30,499 | ||||||
| KLA Corp. | 26 | 15,114 | ||||||
| Kroger Co. | 285 | 13,027 | ||||||
| Lam Research Corp. | 8 | 6,266 | ||||||
| Lennar Corp., Class A | 89 | 13,265 | ||||||
| Lockheed Martin Corp. | 25 | 11,331 | ||||||
| Lululemon Athletica, Inc. (*) | 15 | 7,669 | ||||||
| M&T Bank Corp. | 31 | 4,249 | ||||||
| M/I Homes, Inc. (*) | 42 | 5,785 | ||||||
| Marathon Oil Corp. | 208 | 5,025 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 49
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Marathon Petroleum Corp. | 36 | $ | 5,341 | |||||
| Martin Marietta Materials, Inc. | 24 | 11,974 | ||||||
| Masco Corp. | 237 | 15,874 | ||||||
| MasterCard, Inc., Class A | 125 | 53,314 | ||||||
| McDonald’s Corp. | 102 | 30,244 | ||||||
| McKesson Corp. | 36 | 16,667 | ||||||
| Medpace Holdings, Inc. (*) | 20 | 6,131 | ||||||
| Merck & Co., Inc. | 594 | 64,758 | ||||||
| Meta Platforms, Inc., Class A (*) | 185 | 65,483 | ||||||
| MetLife, Inc. | 170 | 11,242 | ||||||
| Microchip Technology, Inc. | 32 | 2,886 | ||||||
| Microsoft Corp. | 524 | 197,045 | ||||||
| Molina Healthcare, Inc. (*) | 16 | 5,781 | ||||||
| Moody’s Corp. | 17 | 6,640 | ||||||
| Motorola Solutions, Inc. | 38 | 11,897 | ||||||
| MSC Industrial Direct Co., Inc. Class A | 65 | 6,582 | ||||||
| National Fuel Gas Co. | 169 | 8,479 | ||||||
| Netflix, Inc. (*) | 7 | 3,408 | ||||||
| Neurocrine Biosciences, Inc. (*) | 33 | 4,348 | ||||||
| NewMarket Corp. | 22 | 12,008 | ||||||
| Newmont Corp. CDI | 124 | 5,125 | ||||||
| NIKE, Inc., Class B | 122 | 13,246 | ||||||
| NiSource, Inc. | 297 | 7,885 | ||||||
| Northrop Grumman Corp. | 9 | 4,213 | ||||||
| Nucor Corp. | 19 | 3,307 | ||||||
| NVIDIA Corp. | 220 | 108,948 | ||||||
| Oracle Corp. | 261 | 27,517 | ||||||
| Ovintiv, Inc. | 118 | 5,183 | ||||||
| Owens Corning | 19 | 2,816 | ||||||
| PACCAR, Inc. | 42 | 4,101 | ||||||
| Paychex, Inc. | 25 | 2,978 | ||||||
| PepsiCo, Inc. | 103 | 17,494 | ||||||
| Pfizer, Inc. | 111 | 3,196 | ||||||
| PG&E Corp. | 333 | 6,004 | ||||||
| Pinnacle West Capital Corp. | 57 | 4,095 | ||||||
| Pioneer Natural Resources Co. | 19 | 4,273 | ||||||
The accompanying notes are an integral part of these financial statements.
50 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| PNM Resources, Inc. | 171 | $ | 7,114 | |||||
| PriceSmart, Inc. | 66 | 5,001 | ||||||
| Procter & Gamble Co. | 297 | 43,522 | ||||||
| PTC, Inc. (*) | 97 | 16,971 | ||||||
| Public Service Enterprise Group, Inc. | 57 | 3,486 | ||||||
| PulteGroup, Inc. | 213 | 21,986 | ||||||
| QUALCOMM, Inc. | 292 | 42,232 | ||||||
| Qualys, Inc. (*) | 41 | 8,047 | ||||||
| Regeneron Pharmaceuticals, Inc. (*) | 10 | 8,783 | ||||||
| RingCentral, Inc., Class A (*) | 39 | 1,324 | ||||||
| Roche Holding AG | 153 | 44,344 | ||||||
| Rockwell Automation, Inc. | 47 | 14,593 | ||||||
| Ryman Hospitality Properties, Inc. REIT | 67 | 7,374 | ||||||
| S&P Global, Inc. | 55 | 24,229 | ||||||
| SandRidge Energy, Inc. | 288 | 3,937 | ||||||
| Sanofi SA | 259 | 25,678 | ||||||
| SBA Communications Corp. REIT | 35 | 8,879 | ||||||
| Sempra | 122 | 9,117 | ||||||
| ServiceNow, Inc. (*) | 45 | 31,792 | ||||||
| Sherwin-Williams Co. | 45 | 14,035 | ||||||
| Simon Property Group, Inc. REIT | 127 | 18,115 | ||||||
| Southwestern Energy Co. (*) | 584 | 3,825 | ||||||
| Stellantis NV | 1,417 | 33,184 | ||||||
| Stryker Corp. | 94 | 28,149 | ||||||
| Super Micro Computer, Inc. (*) | 33 | 9,381 | ||||||
| Synchrony Financial | 114 | 4,354 | ||||||
| Synopsys, Inc. (*) | 113 | 58,185 | ||||||
| Sysco Corp. | 112 | 8,191 | ||||||
| Target Corp. | 126 | 17,945 | ||||||
| Tecnoglass, Inc. | 132 | 6,034 | ||||||
| Terex Corp. | 98 | 5,631 | ||||||
| Tesla, Inc. (*) | 170 | 42,242 | ||||||
| Texas Instruments, Inc. | 103 | 17,557 | ||||||
| Texas Pacific Land Corp. | 2 | 3,145 | ||||||
| Thermo Fisher Scientific, Inc. | 40 | 21,232 | ||||||
| TJX Cos., Inc. | 433 | 40,620 | ||||||
| Toll Brothers, Inc. | 141 | 14,493 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 51
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| TopBuild Corp. (*) | 33 | $ | 12,351 | |||||
| Tradeweb Markets, Inc., Class A | 171 | 15,540 | ||||||
| Trane Technologies PLC | 26 | 6,341 | ||||||
| Travelers Cos., Inc. | 17 | 3,238 | ||||||
| U-Haul Holding Co. (*) | 65 | 4,667 | ||||||
| UMH Properties, Inc. REIT | 254 | 3,891 | ||||||
| United Parcel Service, Inc., Class B | 28 | 4,402 | ||||||
| United Therapeutics Corp. (*) | 19 | 4,178 | ||||||
| UnitedHealth Group, Inc. | 66 | 34,747 | ||||||
| Universal Health Services, Inc., Class B | 37 | 5,640 | ||||||
| Unum Group | 255 | 11,531 | ||||||
| VeriSign, Inc. (*) | 36 | 7,415 | ||||||
| Verizon Communications, Inc. | 709 | 26,729 | ||||||
| Vertex Pharmaceuticals, Inc. (*) | 60 | 24,413 | ||||||
| Visa, Inc., A Shares | 92 | 23,952 | ||||||
| Vistra Corp. | 371 | 14,291 | ||||||
| W.R. Berkley Corp. | 55 | 3,890 | ||||||
| Walmart, Inc. | 82 | 12,927 | ||||||
| Warner Music Group Corp., Class A | 187 | 6,693 | ||||||
| Waste Management, Inc. | 71 | 12,716 | ||||||
| WD-40 Co. | 24 | 5,738 | ||||||
| Wells Fargo & Co. | 399 | 19,639 | ||||||
| Western Union Co. | 381 | 4,542 | ||||||
| Westlake Corp. | 24 | 3,359 | ||||||
| White Mountains Insurance Group Ltd. | 4 | 6,020 | ||||||
| Williams-Sonoma, Inc. | 34 | 6,861 | ||||||
| Willis Towers Watson PLC | 16 | 3,859 | ||||||
| WK Kellogg Co. | 45 | 591 | ||||||
| Workday, Inc., Class A (*) | 23 | 6,349 | ||||||
| WP Carey, Inc. REIT | 65 | 4,213 | ||||||
| Xcel Energy, Inc. | 172 | 10,649 | ||||||
| Zoetis, Inc. | 86 | 16,974 | ||||||
| Zoom Video Communications, Inc. Class A (*) | 51 | 3,667 | ||||||
| 4,122,404 | ||||||||
| Total Common Stocks (Cost $4,657,680) | 5,890,411 | |||||||
The accompanying notes are an integral part of these financial statements.
52 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Corporate Bonds | 14.6% | ||||||||||
| Canada | 0.7% | ||||||||||
| Canadian Imperial Bank of Commerce, 0.950%, 10/23/25 | USD | 75 | $ | 70,040 | ||||||
| Denmark | 0.4% | ||||||||||
| Nykredit Realkredit AS, 1.000%, 01/01/27 | DKK | 345 | 48,732 | |||||||
| Germany | 0.7% | ||||||||||
| Mercedes-Benz Group AG, 0.750%, 09/10/30 | EUR | 76 | 72,719 | |||||||
| Switzerland | 0.5% | ||||||||||
| ABB Finance USA, Inc., 4.375%, 05/08/42 | USD | 57 | 52,584 | |||||||
| United States | 12.3% | ||||||||||
| Adobe, Inc., 2.300%, 02/01/30 | USD | 45 | 40,311 | |||||||
| Alphabet, Inc., 1.100%, 08/15/30 | USD | 50 | 41,415 | |||||||
| American Express Co., 4.050%, 05/03/29 | USD | 35 | 34,642 | |||||||
| Amgen, Inc., 3.000%, 02/22/29 | USD | 60 | 56,434 | |||||||
| Apple, Inc., 1.125%, 05/11/25 | USD | 20 | 19,071 | |||||||
| AT&T, Inc., 3.500%, 06/01/41 | USD | 60 | 47,645 | |||||||
| Ball Corp., 4.875%, 03/15/26 | USD | 40 | 39,854 | |||||||
| Bank of America Corp., 1.978% (CDOR 3 Month + 0.600%), 09/15/27 (§) | CAD | 45 | 31,641 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 53
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Citigroup, Inc., 1.281% (SOFR + 0.528%), 11/03/25 (§) | USD | 45 | $ | 43,296 | ||||||
| Clean Harbors, Inc., 4.875%, 07/15/27 | USD | 35 | 34,296 | |||||||
| Comcast Corp., 4.650%, 02/15/33 | USD | 45 | 45,271 | |||||||
| Goldman Sachs Group, Inc., 1.992% (SOFR + 1.090%), 01/27/32 (§) | USD | 75 | 60,599 | |||||||
| Home Depot, Inc., 5.875%, 12/16/36 | USD | 35 | 39,121 | |||||||
| John Deere Financial, Inc., 2.410%, 01/14/25 | CAD | 45 | 33,078 | |||||||
| Johnson Controls International PLC/Tyco Fire & Security Finance SCA, 1.750%, 09/15/30 | USD | 60 | 49,838 | |||||||
| JPMorgan Chase & Co., 3.540% (SOFR 3 Month + 1.642%), 05/01/28 (§) | USD | 80 | 76,348 | |||||||
| Kimberly-Clark Corp., 3.200%, 04/25/29 | USD | 18 | 17,043 | |||||||
| Lowe’s Cos., Inc., 5.000%, 04/15/33 | USD | 45 | 45,958 | |||||||
| McDonald’s Corp., 3.125%, 03/04/25 | CAD | 110 | 81,427 | |||||||
| Microsoft Corp., 3.500%, 11/15/42 | USD | 75 | 65,165 | |||||||
| Morgan Stanley, 3.625%, 01/20/27 | USD | 60 | 58,169 | |||||||
| PepsiCo, Inc., 2.875%, 10/15/49 | USD | 65 | 47,704 | |||||||
| Procter & Gamble Co., 1.200%, 10/29/30 | USD | 20 | 16,567 | |||||||
| Prologis LP, 1.250%, 10/15/30 | USD | 45 | 36,357 | |||||||
| Starbucks Corp., 4.450%, 08/15/49 | USD | 50 | 45,388 | |||||||
The accompanying notes are an integral part of these financial statements.
54 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Sysco Corp., 2.400%, 02/15/30 | USD | 50 | $ | 44,104 | ||||||
| Toyota Motor Credit Corp., 2.150%, 02/13/30 | USD | 40 | 35,331 | |||||||
| United Rentals North America, Inc., 4.875%, 01/15/28 | USD | 35 | 34,169 | |||||||
| Verizon Communications, Inc., 3.875%, 02/08/29 | USD | 34 | 32,962 | |||||||
| Waste Management, Inc., 4.625%, 02/15/30 | USD | 35 | 35,395 | |||||||
| 1,288,599 | ||||||||||
| Total Corporate Bonds (Cost $1,541,437) | 1,532,674 | |||||||||
| Description | Shares | Fair Value | ||||||||
| Exchange-Traded Funds | 1.1% | ||||||||||
| iShares MSCI World ETF (Cost $74,662) | 886 | $ | 117,856 | |||||||
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Foreign Government Obligations | 18.7% | ||||||||||
| Australia | 1.3% | ||||||||||
| New South Wales Treasury Corp., 1.250%, 11/20/30 | AUD | 135 | $ | 75,903 | ||||||
| Queensland Treasury Corp., 1.250%, 03/10/31 | AUD | 110 | 61,279 | |||||||
| 137,182 | ||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 55
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Bahamas | 0.5% | ||||||||||
| Bahamas Government International Bonds, 6.950%, 11/20/29 | USD | 55 | $ | 47,592 | ||||||
| Canada | 2.5% | ||||||||||
| British Columbia, 3.200%, 06/18/44 | CAD | 155 | 103,355 | |||||||
| Export Development Canada, 1.650%, 07/31/24 | CAD | 40 | 29,631 | |||||||
| Quebec, 1.850%, 02/13/27 | CAD | 75 | 53,681 | |||||||
| Vancouver, 2.900%, 11/20/25 | CAD | 105 | 77,435 | |||||||
| 264,102 | ||||||||||
| Chile | 0.2% | ||||||||||
| Bonos de la Tesoreria de la Republica en pesos, 2.500%, 03/01/25 | CLP | 20,000 | 21,763 | |||||||
| Colombia | 0.5% | ||||||||||
| Colombia Government International Bonds, 9.850%, 06/28/27 | COP | 225,000 | 55,574 | |||||||
| Croatia | 0.7% | ||||||||||
| Croatia Government International Bonds, 1.750%, 03/04/41 | EUR | 83 | 69,186 | |||||||
| Czech Republic | 0.9% | ||||||||||
| Czech Republic Government Bonds, 6.790% (PRIBOR 6 Month - 0.100%), 11/19/27 (§) | CZK | 2,180 | 97,488 | |||||||
The accompanying notes are an integral part of these financial statements.
56 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Denmark | 0.6% | ||||||||||
| Denmark Government Bonds, 0.000%, 11/15/31 | DKK | 465 | $ | 58,307 | ||||||
| France | 0.5% | ||||||||||
| French Republic Government Bonds OAT, 1.750%, 06/25/39 | EUR | 60 | 57,582 | |||||||
| Hungary | 0.4% | ||||||||||
| Hungary Government International Bonds, 1.750%, 06/05/35 | EUR | 45 | 37,954 | |||||||
| Ireland | 0.8% | ||||||||||
| Ireland Government Bonds, 1.350%, 03/18/31 | EUR | 80 | 83,088 | |||||||
| Israel | 0.6% | ||||||||||
| Israel Government Bonds - Fixed, 1.750%, 08/31/25 | ILS | 235 | 63,168 | |||||||
| Italy | 0.3% | ||||||||||
| Italy Buoni Poliennali Del Tesoro, 4.000%, 04/30/35 | EUR | 25 | 28,180 | |||||||
| Japan | 0.4% | ||||||||||
| Japan Government Ten Year Bonds, 0.400%, 06/20/25 | JPY | 5,500 | 39,234 | |||||||
| Mexico | 1.2% | ||||||||||
| Mexico Bonos: | ||||||||||
| 8.000%, 09/05/24 | MXN | 1,020 | 58,947 | |||||||
| 7.500%, 06/03/27 | MXN | 1,010 | 56,397 | |||||||
| Mexico Government International Bonds, 6.750%, 02/06/24 | GBP | 5 | 6,360 | |||||||
| 121,704 | ||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 57
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| New Zealand | 1.9% | ||||||||||
| Housing New Zealand Ltd., 3.420%, 10/18/28 | NZD | 150 | $ | 90,197 | ||||||
| New Zealand Local Government Funding Agency Bonds: | ||||||||||
| 2.250%, 04/15/24 | NZD | 80 | 50,101 | |||||||
| 2.000%, 04/15/37 | NZD | 130 | 57,209 | |||||||
| 197,507 | ||||||||||
| Peru | 0.9% | ||||||||||
| Peru Government Bonds, 6.150%, 08/12/32 | PEN | 189 | 49,787 | |||||||
| Peruvian Government International Bonds, 3.000%, 01/15/34 | USD | 55 | 46,303 | |||||||
| 96,090 | ||||||||||
| Poland | 0.2% | ||||||||||
| Poland Government Bonds, 5.790% (WIBOR 6 Month), 05/25/28 (§) | PLN | 105 | 26,125 | |||||||
| Portugal | 0.7% | ||||||||||
| Portugal Obrigacoes do Tesouro OT, 1.650%, 07/16/32 | EUR | 70 | 71,404 | |||||||
| Singapore | 0.6% | ||||||||||
| Singapore Government Bonds, 3.375%, 09/01/33 | SGD | 80 | 64,022 | |||||||
| Slovenia | 0.3% | ||||||||||
| Slovenia Government Bonds, 1.500%, 03/25/35 | EUR | 30 | 27,810 | |||||||
| Spain | 0.8% | ||||||||||
| Spain Government Bonds, 1.000%, 07/30/42 | EUR | 117 | 86,389 | |||||||
The accompanying notes are an integral part of these financial statements.
58 Annual Report
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Switzerland | 0.6% | ||||||||||
| Swiss Confederation Government Bonds: | ||||||||||
| 1.500%, 07/24/25 | CHF | 20 | $ | 23,916 | ||||||
| 0.500%, 06/27/32 | CHF | 35 | 40,884 | |||||||
| 64,800 | ||||||||||
| Thailand | 0.8% | ||||||||||
| Thailand Government Bonds, 1.585%, 12/17/35 | THB | 3,370 | 87,142 | |||||||
| United Kingdom | 0.5% | ||||||||||
| U.K. Gilts, 0.875%, 07/31/33 | GBP | 58 | 57,872 | |||||||
| Total Foreign Government Obligations (Cost $1,926,155) | 1,961,265 | |||||||||
| Quasi Government Bonds | 1.4% | ||||||||||
| Germany | 1.4% | ||||||||||
| Kreditanstalt fuer Wiederaufbau: | ||||||||||
| 0.000%, 09/15/28 | EUR | 40 | 39,495 | |||||||
| 1.750%, 09/14/29 | USD | 80 | 71,014 | |||||||
| 0.000%, 04/18/36 | USD | 55 | 32,889 | |||||||
| (Cost $144,421) | 143,398 | |||||||||
| Supranational Bonds | 4.6% | ||||||||||
| Asian Development Bank: | ||||||||||
| 2.125%, 03/19/25 | USD | 53 | 51,470 | |||||||
| 6.200%, 10/06/26 | INR | 2,000 | 23,694 | |||||||
| European Investment Bank, 1.000%, 01/28/28 | CAD | 85 | 57,874 | |||||||
| European Union, 0.400%, 02/04/37 | EUR | 70 | 57,180 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 59
| Description | Security Currency | Principal Amount (000) | Fair Value | |||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||||
| Inter-American Development Bank, 5.100%, 11/17/26 | IDR | 590,000 | $ | 37,684 | ||||||
| Inter-American Investment Corp., 1.100%, 06/30/26 | AUD | 37 | 23,139 | |||||||
| International Bank for Reconstruction & Development: | ||||||||||
| 2.900%, 11/26/25 | AUD | 40 | 26,617 | |||||||
| 1.250%, 03/16/26 | NOK | 660 | 61,555 | |||||||
| 1.125%, 09/13/28 | USD | 42 | 36,848 | |||||||
| International Finance Corp.: | ||||||||||
| 2.125%, 04/07/26 | USD | 55 | 52,483 | |||||||
| 1.500%, 04/15/35 | AUD | 122 | 59,267 | |||||||
| Total Supranational Bonds (Cost $523,910) | 487,811 | |||||||||
| U.S. Treasury Securities | 2.7% | ||||||||||
| U.S. Treasury Bill, 0.000%, 04/04/24 | USD | 5 | 4,953 | |||||||
| U.S. Treasury Bonds: | ||||||||||
| 4.125%, 11/15/32 | USD | 30 | 30,494 | |||||||
| 2.250%, 05/15/41 | USD | 85 | 64,743 | |||||||
| 1.750%, 08/15/41 | USD | 150 | 104,320 | |||||||
| 3.625%, 02/15/53 | USD | 15 | 13,852 | |||||||
| U.S. Treasury Inflation-Indexed Note, 1.250%, 04/15/28 (††) | USD | 72 | 69,928 | |||||||
| Total U.S. Treasury Securities (Cost $267,952) | 288,290 | |||||||||
The accompanying notes are an integral part of these financial statements.
60 Annual Report
| Description | Shares | Fair Value | ||||||
| Lazard Global Dynamic Multi-Asset Portfolio (continued) | ||||||||
| Warrants | 0.0% | ||||||||
| Canada | 0.0% | ||||||||
| Constellation Software, Inc. Expires 03/31/40 (*), (¢) (Cost $0) | 19 | $ | 0 | |||||
| Total Investments | 99.2% (Cost $9,136,217) (») | $ | 10,421,705 | ||||||
| Cash and Other Assets in Excess of Liabilities | 0.8% | 83,313 | |||||||
| Net Assets | 100.0% | $ | 10,505,018 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 61
Lazard Global Dynamic Multi-Asset Portfolio (continued)
Forward Currency Contracts open at December 31, 2023:
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||
| AUD | 9,687 | USD | 6,300 | CIT | 01/18/24 | $ | 304 | $ | — | |||||||||||
| AUD | 1,762 | USD | 1,129 | JPM | 01/18/24 | 72 | — | |||||||||||||
| AUD | 11,963 | USD | 7,600 | JPM | 01/18/24 | 556 | — | |||||||||||||
| CAD | 13,304 | USD | 9,931 | CIT | 01/18/24 | 111 | — | |||||||||||||
| CAD | 14,575 | USD | 10,766 | CIT | 01/18/24 | 236 | — | |||||||||||||
| CAD | 18,283 | USD | 13,714 | CIT | 03/26/24 | 100 | — | |||||||||||||
| CAD | 17,782 | USD | 13,000 | HSB | 01/18/24 | 423 | — | |||||||||||||
| CAD | 111,323 | USD | 81,744 | HSB | 01/18/24 | 2,290 | — | |||||||||||||
| CAD | 20,271 | USD | 14,800 | JPM | 01/18/24 | 502 | — | |||||||||||||
| CHF | 3,122 | USD | 3,500 | HSB | 01/18/24 | 217 | — | |||||||||||||
| CHF | 4,156 | USD | 4,700 | HSB | 01/18/24 | 248 | — | |||||||||||||
| CNH | 234,795 | USD | 32,400 | HSB | 01/18/24 | 585 | — | |||||||||||||
| CNH | 1,476,019 | USD | 203,966 | HSB | 01/18/24 | 3,390 | — | |||||||||||||
| CNH | 1,000,386 | USD | 138,237 | JPM | 01/18/24 | 2,300 | — | |||||||||||||
| CZK | 72,980 | USD | 3,193 | CIT | 01/18/24 | 68 | — | |||||||||||||
| CZK | 88,369 | USD | 3,800 | CIT | 01/18/24 | 150 | — | |||||||||||||
| CZK | 71,093 | USD | 3,100 | JPM | 01/18/24 | 77 | — | |||||||||||||
| DKK | 15,937 | USD | 2,300 | HSB | 01/18/24 | 62 | — | |||||||||||||
| DKK | 16,141 | USD | 2,300 | JPM | 01/18/24 | 92 | — | |||||||||||||
| EUR | 76,888 | USD | 82,700 | CIT | 01/18/24 | 2,230 | — | |||||||||||||
| EUR | 92,731 | USD | 98,600 | CIT | 01/18/24 | 3,831 | — | |||||||||||||
| EUR | 307,677 | USD | 332,565 | CIT | 01/18/24 | 7,294 | — | |||||||||||||
| EUR | 9,024 | USD | 9,842 | JPM | 01/18/24 | 126 | — | |||||||||||||
| EUR | 19,046 | USD | 20,586 | JPM | 01/18/24 | 452 | — | |||||||||||||
| EUR | 54,979 | USD | 60,390 | JPM | 03/26/24 | 505 | — | |||||||||||||
| EUR | 16,351 | USD | 17,960 | SSB | 03/26/24 | 150 | — | |||||||||||||
| GBP | 7,057 | USD | 8,803 | CIT | 01/18/24 | 194 | — | |||||||||||||
| GBP | 8,819 | USD | 11,000 | HSB | 01/18/24 | 242 | — | |||||||||||||
| GBP | 13,117 | USD | 16,200 | HSB | 01/18/24 | 521 | — | |||||||||||||
| GBP | 16,120 | USD | 19,600 | HSB | 01/18/24 | 950 | — | |||||||||||||
| GBP | 62,500 | USD | 77,958 | JPM | 01/18/24 | 1,714 | — | |||||||||||||
| HUF | 2,555,284 | USD | 6,783 | HSB | 01/18/24 | 568 | — | |||||||||||||
| INR | 2,207,469 | USD | 26,377 | HSB | 03/27/24 | 45 | — | |||||||||||||
| JPY | 6,805,446 | USD | 45,900 | CIT | 01/18/24 | 2,464 | — | |||||||||||||
| JPY | 8,964,773 | USD | 62,191 | CIT | 01/18/24 | 1,519 | — | |||||||||||||
| JPY | 8,342,588 | USD | 56,500 | HSB | 01/18/24 | 2,788 | — | |||||||||||||
The accompanying notes are an integral part of these financial statements.
62 Annual Report
Lazard Global Dynamic Multi-Asset Portfolio (continued)
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||
| JPY | 85,830,739 | USD | 595,627 | HSB | 01/18/24 | $ | 14,346 | $ | — | |||||||||||
| JPY | 3,000,000 | USD | 21,343 | SSB | 03/26/24 | 204 | — | |||||||||||||
| KRW | 69,330,262 | USD | 52,559 | JPM | 03/27/24 | 1,238 | — | |||||||||||||
| MXN | 40,820 | USD | 2,300 | HSB | 01/18/24 | 98 | — | |||||||||||||
| NZD | 16,966 | USD | 10,582 | HSB | 01/18/24 | 144 | — | |||||||||||||
| NZD | 38,002 | USD | 22,310 | HSB | 01/18/24 | 1,714 | — | |||||||||||||
| PLN | 208,041 | USD | 47,496 | HSB | 01/18/24 | 5,367 | — | |||||||||||||
| PLN | 11,466 | USD | 2,650 | JPM | 01/18/24 | 264 | — | |||||||||||||
| RON | 14,346 | USD | 3,100 | CIT | 01/18/24 | 83 | — | |||||||||||||
| RON | 158,240 | USD | 34,173 | HSB | 01/18/24 | 939 | — | |||||||||||||
| SEK | 310,601 | USD | 28,172 | HSB | 01/18/24 | 2,641 | — | |||||||||||||
| USD | 2,000 | AUD | 3,025 | HSB | 01/18/24 | — | 62 | |||||||||||||
| USD | 17,554 | AUD | 27,228 | HSB | 01/18/24 | — | 1,009 | |||||||||||||
| USD | 153,752 | AUD | 239,974 | JPM | 01/18/24 | — | 9,858 | |||||||||||||
| USD | 5,103 | AUD | 7,551 | SSB | 03/26/24 | — | 56 | |||||||||||||
| USD | 135,385 | CAD | 184,413 | CIT | 01/18/24 | — | 3,821 | |||||||||||||
| USD | 13,874 | CAD | 18,283 | CIT | 03/26/24 | 61 | — | |||||||||||||
| USD | 4,000 | CAD | 5,436 | HSB | 01/18/24 | — | 103 | |||||||||||||
| USD | 13,894 | CAD | 18,999 | HSB | 01/18/24 | — | 448 | |||||||||||||
| USD | 36,580 | CAD | 50,334 | HSB | 01/18/24 | — | 1,415 | |||||||||||||
| USD | 26,000 | CAD | 35,277 | JPM | 01/18/24 | — | 630 | |||||||||||||
| USD | 240,970 | CAD | 328,616 | JPM | 01/18/24 | — | 7,091 | |||||||||||||
| USD | 5,333 | CHF | 4,758 | HSB | 01/18/24 | — | 333 | |||||||||||||
| USD | 19,765 | CHF | 17,361 | HSB | 01/18/24 | — | 907 | |||||||||||||
| USD | 11,000 | CNH | 78,637 | HSB | 01/18/24 | — | 47 | |||||||||||||
| USD | 9,000 | COP | 36,720,000 | HSB | 01/18/24 | — | 447 | |||||||||||||
| USD | 38,857 | COP | 157,372,597 | HSB | 01/18/24 | — | 1,629 | |||||||||||||
| USD | 8,715 | CZK | 200,856 | CIT | 01/18/24 | — | 262 | |||||||||||||
| USD | 44,023 | CZK | 1,006,049 | CIT | 01/18/24 | — | 942 | |||||||||||||
| USD | 18,096 | CZK | 413,181 | HSB | 01/18/24 | — | 370 | |||||||||||||
| USD | 3,639 | DKK | 25,146 | CIT | 01/18/24 | — | 88 | |||||||||||||
| USD | 47,521 | DKK | 328,378 | HSB | 01/18/24 | — | 1,145 | |||||||||||||
| USD | 8,663 | DKK | 60,212 | JPM | 01/18/24 | — | 261 | |||||||||||||
| USD | 18,895 | DKK | 130,583 | JPM | 01/18/24 | — | 457 | |||||||||||||
| USD | 11,652 | DKK | 79,017 | SSB | 03/26/24 | — | 99 | |||||||||||||
| USD | 20,587 | EUR | 19,437 | CIT | 01/18/24 | — | 883 | |||||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 63
Lazard Global Dynamic Multi-Asset Portfolio (concluded)
| Currency Purchased | Quantity | Currency Sold | Quantity | Counterparty | Settlement Date | Unrealized Appreciation | Unrealized Depreciation | |||||||||||||
| USD | 30,000 | EUR | 27,744 | CIT | 01/18/24 | $ | — | $ | 646 | |||||||||||
| USD | 95,260 | EUR | 88,132 | CIT | 01/18/24 | — | 2,089 | |||||||||||||
| USD | 8,532 | EUR | 8,027 | HSB | 01/18/24 | — | 334 | |||||||||||||
| USD | 40,849 | EUR | 38,094 | JPM | 01/18/24 | — | 1,229 | |||||||||||||
| USD | 4,487 | GBP | 3,651 | CIT | 01/18/24 | — | 168 | |||||||||||||
| USD | 6,000 | GBP | 4,764 | CIT | 01/18/24 | — | 73 | |||||||||||||
| USD | 6,419 | GBP | 5,077 | SSB | 03/26/24 | — | 55 | |||||||||||||
| USD | 14,926 | IDR | 236,894,520 | JPM | 03/27/24 | — | 458 | |||||||||||||
| USD | 17,187 | ILS | 62,962 | CIT | 03/27/24 | — | 248 | |||||||||||||
| USD | 22,641 | ILS | 81,706 | HSB | 03/27/24 | 15 | — | |||||||||||||
| USD | 22,524 | ILS | 81,897 | JPM | 03/27/24 | — | 154 | |||||||||||||
| USD | 4,000 | INR | 334,600 | HSB | 03/27/24 | — | 5 | |||||||||||||
| USD | 16,000 | JPY | 2,285,766 | CIT | 01/18/24 | — | 244 | |||||||||||||
| USD | 3,378 | JPY | 503,818 | HSB | 01/18/24 | — | 203 | |||||||||||||
| USD | 13,651 | JPY | 2,015,894 | HSB | 01/18/24 | — | 676 | |||||||||||||
| USD | 17,000 | JPY | 2,519,558 | HSB | 01/18/24 | — | 906 | |||||||||||||
| USD | 244,305 | JPY | 35,204,638 | HSB | 01/18/24 | — | 5,884 | |||||||||||||
| USD | 132,977 | JPY | 18,846,043 | JPM | 03/26/24 | — | 2,386 | |||||||||||||
| USD | 38,580 | JPY | 5,466,863 | SSB | 03/26/24 | — | 686 | |||||||||||||
| USD | 6,947 | MXN | 123,244 | CIT | 01/18/24 | — | 293 | |||||||||||||
| USD | 4,762 | MXN | 84,464 | HSB | 01/18/24 | — | 200 | |||||||||||||
| USD | 9,901 | MXN | 175,129 | HSB | 01/18/24 | — | 388 | |||||||||||||
| USD | 67,242 | MXN | 1,193,264 | JPM | 01/18/24 | — | 2,863 | |||||||||||||
| USD | 52,082 | NOK | 552,893 | JPM | 01/18/24 | — | 2,358 | |||||||||||||
| USD | 5,611 | NZD | 9,457 | CIT | 01/18/24 | — | 368 | |||||||||||||
| USD | 201,816 | NZD | 343,761 | HSB | 01/18/24 | — | 15,502 | |||||||||||||
| USD | 22,943 | PEN | 85,784 | CIT | 03/27/24 | — | 186 | |||||||||||||
| USD | 17,396 | PEN | 64,923 | HSB | 03/27/24 | — | 108 | |||||||||||||
| USD | 2,412 | PLN | 10,031 | HSB | 01/18/24 | — | 136 | |||||||||||||
| USD | 59,845 | PLN | 258,777 | HSB | 01/18/24 | — | 5,910 | |||||||||||||
| USD | 4,482 | SEK | 49,414 | HSB | 01/18/24 | — | 420 | |||||||||||||
| USD | 3,790 | SGD | 5,123 | CIT | 01/18/24 | — | 95 | |||||||||||||
| USD | 22,293 | SGD | 29,987 | HSB | 01/18/24 | — | 444 | |||||||||||||
| USD | 25,173 | SGD | 33,866 | JPM | 01/18/24 | — | 506 | |||||||||||||
| USD | 63,545 | THB | 2,236,458 | HSB | 01/18/24 | — | 2,062 | |||||||||||||
| Total gross unrealized appreciation/depreciation on Forward Currency Contracts | $ | 64,490 | $ | 80,646 | ||||||||||||||||
The accompanying notes are an integral part of these financial statements.
64 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 65
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Opportunistic Strategies Portfolio (concluded) | ||||||||
| Short-Term Investments | 1.5% | ||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (Cost $533,793) | 533,793 | $ | 533,793 | |||||
| Total Investments | 100.2% (Cost $31,717,556) | $ | 36,763,152 | ||||||
| Liabilities in Excess of Cash and Other Assets | (0.2)% | (65,825 | ) | ||||||
| Net Assets | 100.0% | $ | 36,697,327 | ||||||
The accompanying notes are an integral part of these financial statements.
66 Annual Report
The accompanying notes are an integral part of these financial statements.
Annual Report 67
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||
| Hong Kong | 1.3% | ||||||||
| CK Infrastructure Holdings Ltd. | 1,985 | $ | 11,029 | |||||
| Link REIT | 38,500 | 215,307 | ||||||
| Power Assets Holdings Ltd. | 3,426 | 19,834 | ||||||
| Swire Properties Ltd. | 27,400 | 55,245 | ||||||
| 301,415 | ||||||||
| Italy | 1.8% | ||||||||
| Enel SpA | 9,252 | 68,864 | ||||||
| Hera SpA | 4,272 | 14,019 | ||||||
| Italgas SpA | 3,107 | 17,800 | ||||||
| Snam SpA | 6,898 | 35,504 | ||||||
| Terna - Rete Elettrica Nazionale | 36,233 | 302,315 | ||||||
| 438,502 | ||||||||
| Japan | 3.4% | ||||||||
| Aeon Mall Co. Ltd. | 9,200 | 115,490 | ||||||
| Chubu Electric Power Co., Inc. | 5,000 | 64,515 | ||||||
| East Japan Railway Co. | 1,900 | 109,303 | ||||||
| Hankyu Hanshin Holdings, Inc. | 3,400 | 108,073 | ||||||
| Hoshino Resorts REIT, Inc. | 8 | 32,086 | ||||||
| Industrial & Infrastructure Fund Investment Corp. REIT | 102 | 100,803 | ||||||
| Japan Prime Realty Investment Corp. REIT | 13 | 32,235 | ||||||
| Japan Real Estate Investment Corp. REIT | 16 | 66,185 | ||||||
| Katitas Co. Ltd. | 2,600 | 40,252 | ||||||
| Tokyo Gas Co. Ltd. | 6,600 | 151,301 | ||||||
| 820,243 | ||||||||
| Luxembourg | 0.1% | ||||||||
| SES SA | 1,691 | 11,175 | ||||||
| Singapore | 0.3% | ||||||||
| Parkway Life REIT | 25,400 | 70,814 | ||||||
| South Africa | 0.5% | ||||||||
| Growthpoint Properties Ltd. REIT | 121,722 | 77,584 | ||||||
| Northam Platinum Holdings Ltd. | 5,614 | 43,060 | ||||||
| 120,644 | ||||||||
The accompanying notes are an integral part of these financial statements.
68 Annual Report
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||
| Spain | 1.4% | ||||||||
| Aena SME SA | 664 | $ | 120,552 | |||||
| Atlantica Sustainable Infrastructure PLC | 326 | 7,009 | ||||||
| Iberdrola SA | 16,252 | 212,546 | ||||||
| 340,107 | ||||||||
| Switzerland | 0.1% | ||||||||
| Flughafen Zurich AG | 68 | 14,206 | ||||||
| Taiwan | 0.2% | ||||||||
| Highwealth Construction Corp. | 42,000 | 54,873 | ||||||
| United Kingdom | 4.6% | ||||||||
| Drax Group PLC | 8,508 | 53,135 | ||||||
| LondonMetric Property PLC REIT | 60,789 | 148,024 | ||||||
| National Grid PLC | 25,929 | 350,102 | ||||||
| Pennon Group PLC | 1,107 | 10,693 | ||||||
| Segro PLC REIT | 7,929 | 89,247 | ||||||
| Severn Trent PLC | 939 | 30,883 | ||||||
| SSE PLC | 12,519 | 295,335 | ||||||
| Tritax Big Box REIT PLC | 45,524 | 97,602 | ||||||
| United Utilities Group PLC | 2,280 | 30,729 | ||||||
| 1,105,750 | ||||||||
| United States | 40.0% | ||||||||
| Agree Realty Corp. | 1,631 | 102,671 | ||||||
| Alexandria Real Estate Equities, Inc. REIT | 1,619 | 205,241 | ||||||
| Ameren Corp. | 2,029 | 146,778 | ||||||
| American Electric Power Co., Inc. | 955 | 77,565 | ||||||
| American Homes 4 Rent, Class A REIT | 5,117 | 184,007 | ||||||
| American Tower Corp. REIT | 1,834 | 395,924 | ||||||
| American Water Works Co., Inc. | 435 | 57,416 | ||||||
| Apartment Income REIT Corp. | 5,219 | 181,256 | ||||||
| Apple Hospitality REIT, Inc. | 6,449 | 107,118 | ||||||
| AvalonBay Communities, Inc. REIT | 1,401 | 262,295 | ||||||
| Brixmor Property Group, Inc. | 10,479 | 243,846 | ||||||
| Bunge Global SA | 448 | 45,226 | ||||||
| Camden Property Trust | 585 | 58,085 | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 69
| Fair | ||||||||
| Description | Shares | Value | ||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||
| CF Industries Holdings, Inc. | 858 | $ | 68,211 | |||||
| Cheniere Energy, Inc. | 988 | 168,661 | ||||||
| Chesapeake Energy Corp. | 994 | 76,478 | ||||||
| Consolidated Edison, Inc. | 1,161 | 105,616 | ||||||
| Crown Castle, Inc. REIT | 3,558 | 409,846 | ||||||
| CSX Corp. | 1,645 | 57,032 | ||||||
| CubeSmart | 2,215 | 102,665 | ||||||
| Digital Realty Trust, Inc. REIT | 1,957 | 263,373 | ||||||
| Duke Energy Corp. | 813 | 78,893 | ||||||
| EastGroup Properties, Inc. | 1,129 | 207,217 | ||||||
| Edison International | 1,046 | 74,779 | ||||||
| Energy Transfer Equity LP | 17,641 | 243,446 | ||||||
| Enterprise Products Partners LP | 7,984 | 210,378 | ||||||
| Equinix, Inc. REIT | 481 | 387,393 | ||||||
| Equity Residential REIT | 1,365 | 83,483 | ||||||
| Essex Property Trust, Inc. REIT | 455 | 112,813 | ||||||
| Exelon Corp. | 811 | 29,115 | ||||||
| Extra Space Storage, Inc. | 708 | 113,514 | ||||||
| Ferrovial SE | 1,581 | 57,715 | ||||||
| Four Corners Property Trust, Inc. REIT | 1,349 | 34,130 | ||||||
| Host Hotels & Resorts, Inc. REIT | 8,838 | 172,076 | ||||||
| Invitation Homes, Inc. REIT | 5,685 | 193,915 | ||||||
| Iron Mountain, Inc. REIT | 1,323 | 92,584 | ||||||
| Kilroy Realty Corp. REIT | 2,344 | 93,385 | ||||||
| Mid-America Apartment Communities, Inc. REIT | 1,452 | 195,236 | ||||||
| National Storage Affiliates Trust REIT | 1,746 | 72,407 | ||||||
| NextEra Energy, Inc. | 1,430 | 86,858 | ||||||
| NiSource, Inc. | 4,116 | 109,280 | ||||||
| NNN REIT, Inc. | 2,510 | 108,181 | ||||||
| Norfolk Southern Corp. | 246 | 58,149 | ||||||
| ONEOK, Inc. | 570 | 40,025 | ||||||
| Pinnacle West Capital Corp. | 201 | 14,440 | ||||||
| PPL Corp. | 535 | 14,498 | ||||||
| Prologis, Inc. | 3,920 | 522,536 | ||||||
| Public Storage REIT | 711 | 216,855 | ||||||
| Realty Income Corp. REIT | 1,854 | 106,457 | ||||||
| Regency Centers Corp. REIT | 2,633 | 176,411 | ||||||
| Ryman Hospitality Properties, Inc. REIT | 616 | 67,797 | ||||||
The accompanying notes are an integral part of these financial statements.
70 Annual Report
| Fair | ||||||||||
| Description | Shares | Value | ||||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||||
| SBA Communications Corp. REIT | 1,666 | $ | 422,648 | |||||||
| Simon Property Group, Inc. REIT | 1,948 | 277,863 | ||||||||
| SL Green Realty Corp. REIT | 4,577 | 206,743 | ||||||||
| STAG Industrial, Inc. | 3,660 | 143,692 | ||||||||
| Sunstone Hotel Investors, Inc. REIT | 10,887 | 116,817 | ||||||||
| Targa Resources Corp. | 3,050 | 264,953 | ||||||||
| Union Pacific Corp. | 1,224 | 300,639 | ||||||||
| Ventas, Inc. REIT | 5,286 | 263,454 | ||||||||
| Welltower, Inc. REIT | 1,576 | 142,108 | ||||||||
| Xcel Energy, Inc. | 3,113 | 192,726 | ||||||||
| 9,624,919 | ||||||||||
| Total Common Stocks (Cost $13,802,914) | 14,985,223 | |||||||||
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Corporate Bonds | 12.7% | ||||||||||
| Canada | 2.3% | ||||||||||
| Canadian Pacific Railway Co., 1.350%, 12/02/24 | USD | 300 | $ | 289,237 | ||||||
| Enbridge, Inc., 2.150%, 02/16/24 | USD | 275 | 273,755 | |||||||
| 562,992 | ||||||||||
| United States | 10.4% | ||||||||||
| American Electric Power Co., Inc., 2.031%, 03/15/24 | USD | 275 | 272,740 | |||||||
| Eversource Energy, 4.200%, 06/27/24 | USD | 275 | 272,883 | |||||||
| Kimco Realty OP LLC, 3.300%, 02/01/25 | USD | 300 | 293,392 | |||||||
| NextEra Energy Capital Holdings, Inc., 4.255%, 09/01/24 | USD | 275 | 272,385 | |||||||
| ONEOK, Inc., 2.750%, 09/01/24 | USD | 300 | 294,113 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 71
| Principal | ||||||||||
| Security | Amount | Fair | ||||||||
| Description | Currency | (000) | Value | |||||||
| Lazard Real Assets Portfolio (•) (continued) | ||||||||||
| Southern Co., 4.475%, 08/01/24 (Ø) | USD | $ | 275 | $ | 272,719 | |||||
| Tampa Electric Co., 3.875%, 07/12/24 | USD | 275 | 272,362 | |||||||
| VICI Properties LP/VICI Note Co., Inc., 5.625%, 05/01/24 | USD | 275 | 274,105 | |||||||
| Vistra Operations Co. LLC, 4.875%, 05/13/24 (#) | USD | 275 | 273,446 | |||||||
| 2,498,145 | ||||||||||
| Total Corporate Bonds (Cost $3,059,350) | 3,061,137 | |||||||||
| Fair | ||||||||||
| Description | Shares | Value | ||||||||
| Exchange-Traded Funds | 4.6% | ||||||||||
| iShares Gold Trust (∆) | 19,850 | $ | 774,746 | |||||||
| iShares Silver Trust (∆) | 15,654 | 340,944 | ||||||||
| Total Exchange-Traded Funds (Cost $1,000,212) | 1,115,690 | |||||||||
| Short-Term Investments | 16.9% | ||||||||||
| State Street Institutional Treasury Money Market Fund, Premier Class, 5.28% (7 day yield) (∆) (Cost $4,063,854) | 4,063,854 | 4,063,854 | ||||||||
| Total Investments | 96.5% (Cost $21,926,330) (») | $ | 23,225,904 | ||||||||
| Cash and Other Assets in Excess of Liabilities | 3.5% | 832,254 | |||||||||
| Net Assets | 100.0% | $ | 24,058,158 | ||||||||
The accompanying notes are an integral part of these financial statements.
72 Annual Report
Lazard Real Assets Portfolio (•) (continued)
Forward Currency Contracts open at December 31, 2023:
| Currency | Currency | Settlement | Unrealized | Unrealized | ||||||||||||||||
| Purchased | Quantity | Sold | Quantity | Counterparty | Date | Appreciation | Depreciation | |||||||||||||
| AUD | 31,096 | USD | 21,225 | HSB | 03/26/24 | $ | 18 | $ | — | |||||||||||
| CAD | 10,482 | USD | 7,908 | SSB | 03/26/24 | 12 | — | |||||||||||||
| CHF | 6,465 | USD | 7,638 | SSB | 03/26/24 | 114 | — | |||||||||||||
| EUR | 105,595 | USD | 116,865 | SSB | 03/26/24 | 95 | — | |||||||||||||
| GBP | 53,350 | USD | 67,917 | SSB | 03/26/24 | 112 | — | |||||||||||||
| HKD | 110,706 | USD | 14,197 | SSB | 03/26/24 | 7 | — | |||||||||||||
| USD | 50,461 | AUD | 75,052 | HSB | 03/26/24 | — | 810 | |||||||||||||
| USD | 9,192 | AUD | 13,673 | SSB | 03/26/24 | — | 149 | |||||||||||||
| USD | 1,084 | CAD | 1,446 | HSB | 03/26/24 | — | 9 | |||||||||||||
| USD | 17,460 | CAD | 23,293 | JPM | 03/26/24 | — | 139 | |||||||||||||
| USD | 2,439 | CAD | 3,260 | SSB | 03/26/24 | — | 24 | |||||||||||||
| USD | 8,060 | CAD | 10,752 | SSB | 03/26/24 | — | 64 | |||||||||||||
| USD | 21,344 | CHF | 18,367 | SSB | 03/26/24 | — | 679 | |||||||||||||
| USD | 49,554 | EUR | 44,979 | JPM | 03/26/24 | — | 265 | |||||||||||||
| USD | 36,150 | EUR | 32,892 | SSB | 03/26/24 | — | 282 | |||||||||||||
| USD | 263,634 | EUR | 239,138 | SSB | 03/26/24 | — | 1,240 | |||||||||||||
| USD | 20,322 | GBP | 15,926 | HSB | 03/26/24 | 14 | — | |||||||||||||
| USD | 14,784 | GBP | 11,586 | JPM | 03/26/24 | 10 | — | |||||||||||||
| USD | 162,532 | GBP | 127,398 | SSB | 03/26/24 | 79 | — | |||||||||||||
| USD | 9,043 | HKD | 70,460 | HSB | 03/26/24 | 3 | — | |||||||||||||
| USD | 4,114 | HKD | 32,063 | SSB | 03/26/24 | — | — | |||||||||||||
| USD | 31,254 | HKD | 243,567 | SSB | 03/26/24 | 2 | — | |||||||||||||
| Total gross unrealized appreciation/depreciation on Forward Currency Contracts | $ | 466 | $ | 3,661 | ||||||||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 73
Lazard Real Assets Portfolio (•) (continued)
Futures Contracts open at December 31, 2023 (∆):
| Number of | Notional | Expiration | Notional | Fair | Unrealized | |||||||||||||||
| Type | Contracts | Amount | Date | Cost | Value | Depreciation | ||||||||||||||
| Natural Gas | 10 | $100,000 | 02/27/24 | $ | 265,054 | $ | 232,700 | $ | 32,354 | |||||||||||
| Sugar 11 | 6 | 672,000 | 02/29/24 | 179,712 | 138,298 | 41,414 | ||||||||||||||
| Low Sulphur Gasoil | 2 | 200 | 03/12/24 | 156,702 | 146,950 | 9,752 | ||||||||||||||
| Soybean Oil | 8 | 480,000 | 03/14/24 | 250,680 | 231,264 | 19,416 | ||||||||||||||
| Total gross unrealized depreciation on Futures Contracts | $ | 102,936 | ||||||||||||||||||
Total Return Swap Agreements open at December 31, 2023 (∆):
| Notional | Expiration | Payment | Unrealized | |||||||||||||||||
| Currency | Counterparty | Amount | Date | Receive | Pay | Payable | Frequency | Depreciation | ||||||||||||
| USD | GSC | $3,878,040 | 10/18/24 | Appreciation, and dividends paid, on commodities in a custom momentum basket | 0.00% | Depreciation and dividend expense (if applicable), on commodities in a custom momentum basket | Upon Maturity(a) | $270,687 | ||||||||||||
| (a) | For swap agreements, the net settlement will occur on the expiration date. |
The accompanying notes are an integral part of these financial statements.
74 Annual Report
Lazard Real Assets Portfolio (•) (concluded)
The following table represents the commodity exposure expressed as a percentage of the notional amount of the individual commodity underlying the custom total return basket swap agreements with GSC, as of December 31, 2023:
| Commodity Index | Commodity Exposure Expressed as | ||||||
| Commodity | Ticker Symbol | a Percentage of Notional Amount | |||||
| Aluminum | BCOMAL | 8.51 | % | ||||
| Bean Oil | BCOMBO | 0.68 | |||||
| Brent Crude | BCOMCO | 12.17 | |||||
| Coffee | BCOMKC | 3.69 | |||||
| Copper | BCOMHG | 10.49 | |||||
| Corn | BCOMCN | 2.81 | |||||
| Cotton | BCOMCT | 0.18 | |||||
| Crude Oil | BCOMCL | 12.93 | |||||
| Gasoline (RBOB) | BCOMRB | 2.22 | |||||
| Gold | BCOMGC | 2.84 | |||||
| Heating Oil | BCOMHO | 5.02 | |||||
| Kansas Wheat | BCOMKW | 1.42 | |||||
| Lean Hogs | BCOMLH | 0.15 | |||||
| Live Cattle | BCOMLC | 7.54 | |||||
| Natural Gas | BCOMNG | 0.10 | |||||
| Nickel | BCOMNI | 1.24 | |||||
| Silver | BCOMSI | 1.19 | |||||
| Soy Meal | BCOMSM | 6.01 | |||||
| Soybeans | BCOMSY | 9.41 | |||||
| Sugar | BCOMSB | 3.55 | |||||
| Wheat | BCOMWH | 2.25 | |||||
| Zinc | BCOMZS | 5.60 | |||||
| Total | 100.00 | % | |||||
The accompanying notes are an integral part of these financial statements.
Annual Report 75
The Lazard Funds, Inc. Notes to Portfolios of Investments
December 31, 2023
| (*) | Non-income producing security. |
| (±) | Some or all of this security position has been pledged to cover collateral requirements on securities sold short and/or derivative contracts. |
| (Ø) | Step up bonds are securities which increase the interest payment rate at a specified point in time. Rate shown reflects rate in effect at December 31, 2023 which may step up at a future date. |
| (#) | Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31,2023, the percentage of net assets for each Portfolio was as follows: |
| Portfolio | Percentage of Net Assets | |||||
| Enhanced Opportunities Portfolio | 1.8 | % | ||||
| Real Assets Portfolio | 1.1 | % | ||||
| («) | Issue in default. |
| (») | The portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts. |
| (§) | Variable and floating rate securities are securities for which interest rate changes are based on changes in a designated base rate. The rates shown are those in effect on December 31, 2023. |
| (††) | A note or bond that offers protection from inflation by paying a fixed rate of interest on the principal amount that is adjusted for inflation, in the applicable region, based on the Consumer Price Index or other equivalent regional benchmarks for measuring inflation. |
| (¢) | Security in which significant unobservable inputs (Level 3) were used in determining fair value. |
| (•) | Lazard Real Assets Portfolio’s Portfolio of Investments and accompanying notes are presented on a consolidated basis. |
| (∆) | The security is owned by Lazard Real Assets Portfolio Ltd., a wholly-owned subsidiary of the Portfolio. |
| Security Abbreviations: | ||||
| ADR | — | American Depositary Receipt | ||
| CDOR | — | Canadian Dollar Offered Rate | ||
| ETF | — | Exchange-Traded Fund | ||
| PRIBOR | — | Prague Interbank Offered Rate | ||
| REIT | — | Real Estate Investment Trust | ||
| SOFR | — | Secured Overnight Financing Rate | ||
| WIBOR | — | Warsaw Interbank Offered Rate |
| Currency Abbreviations: | ||||
| AUD | — | Australian Dollar | ||
| CAD | — | Canadian Dollar | ||
| CHF | — | Swiss Franc | ||
| CLP | — | Chilean Peso | ||
| CNH | — | Chinese Yuan Renminbi | ||
| COP | — | Colombian Peso | ||
| CZK | — | Czech Koruna | ||
| DKK | — | Danish Krone | ||
| EUR | — | Euro | ||
| GBP | — | British Pound Sterling | ||
| HKD | — | Hong Kong Dollar | ||
| HUF | — | Hungarian Forint | ||
| IDR | — | Indonesian Rupiah | ||
| ILS | — | Israeli Shekel | ||
| INR | — | Indian Rupee | ||
| JPY | — | Japanese Yen | ||
| KRW | — | South Korean Won | ||
| MXN | — | Mexican New Peso | ||
| NOK | — | Norwegian Krone | ||
| NZD | — | New Zealand Dollar | ||
| PEN | — | Peruvian Nuevo Sol | ||
| PLN | — | Polish Zloty | ||
| RON | — | Romanian Leu | ||
| SEK | — | Swedish Krona | ||
| SGD | — | Singapore Dollar | ||
| THB | — | Thai Baht | ||
| USD | — | United States Dollar |
| Counterparty Abbreviations: | ||||
| BNP | — | BNP Paribas SA | ||
| BOA | — | Bank of America N.A. | ||
| CIT | — | Citibank N.A. | ||
| GSC | — | Goldman Sachs International | ||
| HSB | — | HSBC Bank USA N.A. | ||
| JPM | — | JPMorgan Chase Bank N.A. | ||
| MSC | — | Morgan Stanley & Co. | ||
| NIP | — | Nomura International Plc | ||
| SSB | — | State Street Bank & Trust Co. |
The accompanying notes are an integral part of these financial statements.
76 Annual Report
Portfolio holdings by industry (as a percentage of net assets), for the Portfolio previously presented by country:
| Lazard Enhanced | |||||||||
| Opportunities Portfolio | |||||||||
| Industry† | Long | Short | |||||||
| Common Stocks and Convertible Corporate Bonds | |||||||||
| Aerospace & Defense | 0.5 | % | — | % | |||||
| Air Freight & Logistics | 0.1 | –0.1 | |||||||
| Automobiles Components | — | –0.1 | |||||||
| Automobiles | 2.1 | –1.2 | |||||||
| Banks | 2.5 | — | |||||||
| Biotechnology | 4.1 | –2.0 | |||||||
| Broadline Retail | — | –0.1 | |||||||
| Capital Markets | 0.3 | –0.1 | |||||||
| Chemicals | 2.4 | –2.1 | |||||||
| Communication Equipment | 1.3 | –0.3 | |||||||
| Consumer Finance | 5.4 | –2.8 | |||||||
| Consumer Staples Distribution & Retail | 1.3 | –0.6 | |||||||
| Diversified Consumer Services | 0.9 | — | |||||||
| Diversified REITs | 0.5 | — | |||||||
| Electric Utilities | 0.3 | –0.1 | |||||||
| Electrical Equipment | 2.2 | –1.6 | |||||||
| Electronic Equipment, Instruments & Components | 0.1 | –0.1 | |||||||
| Energy Equipment & Services | — | –2.6 | |||||||
| Entertainment | 2.4 | –2.3 | |||||||
| Financial Services | 5.2 | –1.9 | |||||||
| Health Care Equipment & Supplies | 3.9 | –1.3 | |||||||
| Health Care Providers & Services | — | –0.1 | |||||||
| Health Care Technology | 0.1 | –0.3 | |||||||
| Hotel & Resort REITs Total | — | –0.3 | |||||||
| Hotels, Restaurants & Leisure | 6.0 | –4.3 | |||||||
| Interactive Media & Services | 2.5 | –0.8 | |||||||
| IT Services | 5.8 | –0.9 | |||||||
| Leisure Products | — | –0.1 | |||||||
| Life Sciences Tools & Services | 3.2 | –1.1 | |||||||
| Machinery | 5.9 | –4.7 | |||||||
| Marine Transportation | 4.9 | –4.8 | |||||||
| Media | 5.4 | –0.2 | |||||||
| Metals & Mining | 2.8 | –1.7 | |||||||
| Mortgage Real Estate Investment Trusts (REITs) | 2.9 | –1.1 | |||||||
| Oil, Gas & Consumable Fuels | 3.9 | –0.4 | |||||||
| Passenger Airlines | 2.0 | –1.7 | |||||||
| Pharmaceuticals | 1.9 | –0.2 | |||||||
| Professional Services | 0.3 | –0.1 | |||||||
| Real Estate Management & Development | 0.9 | –0.1 | |||||||
| Semiconductors & Semiconductor Equipment | 4.5 | –1.9 | |||||||
| Software | 9.6 | –3.6 | |||||||
| Specialty Retail | 1.9 | –0.8 | |||||||
| Technology Hardware, Storage & Peripherals | 0.2 | –0.1 | |||||||
| Subtotal | 100.2 | –48.6 | |||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 77
| Lazard Enhanced | |||||||||
| Opportunities Portfolio | |||||||||
| Industry† | Long | Short | |||||||
| Exchange-Traded Funds | — | –3.3 | |||||||
| Purchased Options | 0.1 | — | |||||||
| U.S. Treasury Securities | 74.2 | –29.4 | |||||||
| Short-Term Investments | 5.0 | — | |||||||
| Total Investments | 179.5 | % | –81.3 | % | |||||
| † | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
78 Annual Report
Portfolio holdings by industry (as a percentage of net assets), for those Portfolios previously presented by country:
| Lazard | ||||||||
| Global | Lazard | |||||||
| Dynamic | Real | |||||||
| Multi-Asset | Assets | |||||||
| Industry† | Portfolio | Portfolio | ||||||
| Common Stocks and Corporate & Quasi Government Bonds | ||||||||
| Aerospace & Defense | 0.4 | % | — | % | ||||
| Air Freight & Logistics | 0.2 | — | ||||||
| Automobiles Components | 0.1 | — | ||||||
| Automobiles | 2.5 | — | ||||||
| Banks | 6.8 | — | ||||||
| Beverages | 1.4 | — | ||||||
| Biotechnology | 1.6 | — | ||||||
| Broadline Retail | 1.0 | — | ||||||
| Building Products | 0.9 | — | ||||||
| Capital Markets | 2.5 | — | ||||||
| Chemicals | 0.3 | 0.2 | ||||||
| Commercial Services & Suppliers | 1.2 | — | ||||||
| Communications Equipment | 0.6 | — | ||||||
| Construction & Engineering | 0.2 | 1.8 | ||||||
| Construction Materials | 0.1 | — | ||||||
| Consumer Finance | 0.4 | — | ||||||
| Consumer Staples Distribution & Retail | 1.7 | — | ||||||
| Containers & Packaging | 0.6 | — | ||||||
| Diversified REITs | 0.4 | 1.4 | ||||||
| Diversified Telecommunication Services | 1.8 | — | ||||||
| Electric Utilities | 0.9 | 12.3 | ||||||
| Electrical Equipment | 0.5 | 2.3 | ||||||
| Electronic Equipment, Instruments & Components | 1.1 | — | ||||||
| Entertainment | 0.5 | — | ||||||
| Financial Services | 1.8 | — | ||||||
| Food Products | 0.7 | 0.2 | ||||||
| Gas Utilities | 0.5 | 0.9 | ||||||
| Ground Transportation | 0.3 | 3.6 | ||||||
| Health Care Equipment & Supplies | 0.4 | — | ||||||
| Health Care Providers & Services | 2.6 | — | ||||||
| Health Care REITs | — | 2.0 | ||||||
| Hotel & Resort REITs | 0.1 | 2.1 | ||||||
| Hotels, Restaurants & Leisure | 2.2 | — | ||||||
| Household Durables | 0.8 | — | ||||||
| Household Products | 1.3 | — | ||||||
| Independent Power & Renewable Electricity Producers | 0.3 | 0.2 | ||||||
| Industrial Conglomerates | 0.3 | — | ||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 79
| Lazard | |||||||||
| Global | Lazard | ||||||||
| Dynamic | Real | ||||||||
| Multi-Asset | Assets | ||||||||
| Industry† | Portfolio | Portfolio | |||||||
| Industrial REITs | — | 5.7 | |||||||
| Insurance | 2.7 | — | |||||||
| Interactive Media & Services | 2.5 | — | |||||||
| IT Services | 0.9 | — | |||||||
| Leisure Products | 0.2 | — | |||||||
| Life Sciences Tools & Services | 0.7 | — | |||||||
| Machinery | 1.3 | — | |||||||
| Marine Transportation | — | 1.2 | |||||||
| Media | 0.7 | 0.1 | |||||||
| Metals & Mining | 0.4 | 0.5 | |||||||
| Multi-Utilities | 0.7 | 3.8 | |||||||
| Office REITs | 0.1 | 2.9 | |||||||
| Oil, Gas & Consumable Fuels | 1.2 | 6.5 | |||||||
| Paper & Forest Products | — | 0.3 | |||||||
| Passenger Airlines | 0.1 | — | |||||||
| Personal Care Products | 0.5 | — | |||||||
| Pharmaceuticals | 4.5 | — | |||||||
| Professional Services | 1.1 | — | |||||||
| Real Estate Management & Development | 0.4 | 2.6 | |||||||
| Residential REITs | 0.1 | 5.7 | |||||||
| Retail REITs | 0.5 | 6.6 | |||||||
| Semiconductors & Semiconductor Equipment | 3.2 | — | |||||||
| Software | 5.8 | — | |||||||
| Specialized REITs | 0.1 | 10.4 | |||||||
| Specialty Retail | 1.4 | — | |||||||
| Technology Hardware, Storage & Peripherals | 2.6 | — | |||||||
| Textiles, Apparel & Luxury Goods | 0.5 | — | |||||||
| Tobacco | 0.2 | — | |||||||
| Trading Companies & Distributors | 0.5 | — | |||||||
| Transportation Infrastructure | — | 1.0 | |||||||
| Water Utilities | — | 0.7 | |||||||
| Wireless Telecommunication Services | 0.2 | — | |||||||
| Subtotal | 72.1 | 75.0 | |||||||
| Exchange-Traded Funds | 1.1 | 4.6 | |||||||
| Foreign Government Obligations | 18.7 | — | |||||||
| Supranational Bonds | 4.6 | — | |||||||
| U.S. Treasury Securities | 2.7 | — | |||||||
| Short-Term Investments | — | 16.9 | |||||||
| Warrants | 0.0 | — | |||||||
| Total Investments | 99.2 | % | 96.5 | % | |||||
| † | Industry classifications may be different than those used for compliance monitoring purposes. |
The accompanying notes are an integral part of these financial statements.
80 Annual Report
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Annual Report 81
The Lazard Funds, Inc. Statements of Assets and Liabilities
| December 31, 2023 | Lazard Enhanced Opportunities Portfolio | Lazard Global Dynamic Multi-Asset Portfolio | ||||||||
| ASSETS | ||||||||||
| Investments in securities, at fair value | $ | 66,994,722 | $ | 10,421,705 | ||||||
| Cash | — | 19 | ||||||||
| Foreign currency, at fair value | 456 | 7,504 | ||||||||
| Receivables for: | ||||||||||
| Investments sold | 220,994 | 123,413 | ||||||||
| Dividends and interest | 269,186 | 64,006 | ||||||||
| Amount due from Investment Manager (Note 3) | 4,468 | 5,726 | ||||||||
| Capital stock sold | — | — | ||||||||
| Cash collateral pledged for derivative contracts | 276,385 | — | ||||||||
| Gross unrealized appreciation on: | ||||||||||
| Forward currency contracts | — | 64,490 | ||||||||
| Swap agreements | 3,068,607 | — | ||||||||
| Other assets | — | — | ||||||||
| Total assets | 70,834,818 | 10,686,863 | ||||||||
| LIABILITIES | ||||||||||
| Securities sold short, at fair value | 30,342,486 | — | ||||||||
| Due to custodian | — | — | ||||||||
| Payables for: | ||||||||||
| Accrued custodian fees | 36,057 | 16,937 | ||||||||
| Accrued professional services | 28,479 | 25,394 | ||||||||
| Accrued shareholders’ reports | 8,119 | 2,353 | ||||||||
| Accrued administration fees | 3,851 | 3,436 | ||||||||
| Accrued distribution fees | 61 | 38 | ||||||||
| Accrued directors’ fees | 59 | — | ||||||||
| Management fees | — | — | ||||||||
| Investments purchased | 96,660 | 60 | ||||||||
| Capital stock redeemed | 126,622 | — | ||||||||
| Dividends on securities sold short | 6,855 | — | ||||||||
| Variation margin on open futures contracts | — | — | ||||||||
| Gross unrealized depreciation on: | ||||||||||
| Forward currency contracts | 9,438 | 80,646 | ||||||||
| Swap agreements | 2,762,578 | — | ||||||||
| Line of credit outstanding | — | 51,950 | ||||||||
| Written options, at fair value | 5,242 | — | ||||||||
| Other accrued expenses and payables | 75,250 | 1,031 | ||||||||
| Total liabilities | 33,501,757 | 181,845 | ||||||||
| Net assets | $ | 37,333,061 | $ | 10,505,018 | ||||||
The accompanying notes are an integral part of these financial statements.
82 Annual Report
| Lazard Opportunistic Strategies Portfolio | Lazard Real Assets Portfolio (a) | |||||||||
| $ | 36,763,152 | $ | 23,225,904 | |||||||
| — | — | |||||||||
| — | 15,819 | |||||||||
| — | — | |||||||||
| 6,878 | 116,172 | |||||||||
| — | — | |||||||||
| — | 15 | |||||||||
| — | 1,030,364 | |||||||||
| — | 466 | |||||||||
| — | — | |||||||||
| — | 16,123 | |||||||||
| 36,770,030 | 24,404,863 | |||||||||
| — | — | |||||||||
| 3,955 | — | |||||||||
| 5,366 | 10,172 | |||||||||
| 25,865 | 26,423 | |||||||||
| 7,093 | 4,474 | |||||||||
| 4,056 | 3,959 | |||||||||
| — | 40 | |||||||||
| 42 | — | |||||||||
| 24,869 | 5,580 | |||||||||
| — | — | |||||||||
| — | — | |||||||||
| — | — | |||||||||
| — | 15,238 | |||||||||
| — | 3,661 | |||||||||
| — | 270,687 | |||||||||
| — | — | |||||||||
| — | — | |||||||||
| 1,457 | 6,471 | |||||||||
| 72,703 | 346,705 | |||||||||
| $ | 36,697,327 | $ | 24,058,158 | |||||||
Annual Report 83
| December 31, 2023 | Lazard Enhanced Opportunities Portfolio | Lazard Global Dynamic Multi-Asset Portfolio | ||||||||
| NET ASSETS | ||||||||||
| Paid in capital | $ | 46,818,491 | $ | 9,639,791 | ||||||
| Distributable earnings (Accumulated loss) | (9,485,430 | ) | 865,227 | |||||||
| Net assets | $ | 37,333,061 | $ | 10,505,018 | ||||||
| Institutional Shares | ||||||||||
| Net assets | $ | 36,826,788 | $ | 10,338,203 | ||||||
| Shares of capital stock outstanding* | 4,529,566 | 1,169,739 | ||||||||
| Net asset value, offering and redemption price per share | $ | 8.13 | $ | 8.84 | ||||||
| Open Shares | ||||||||||
| Net assets | $ | 506,273 | $ | 166,815 | ||||||
| Shares of capital stock outstanding* | 62,090 | 19,028 | ||||||||
| Net asset value, offering and redemption price per share | $ | 8.15 | $ | 8.77 | ||||||
| R6 Shares | ||||||||||
| Net assets | — | — | ||||||||
| Shares of capital stock outstanding* | — | — | ||||||||
| Net asset value, offering and redemption price per share | — | — | ||||||||
| Cost of investments in securities | $ | 68,545,121 | $ | 9,136,217 | ||||||
| Proceeds received from securities sold short | $ | 29,467,812 | $ | — | ||||||
| Proceeds received from written options | $ | 5,880 | $ | — | ||||||
| Cost of foreign currency | $ | 457 | $ | 7,464 | ||||||
| * | $0.001 par value, 6,900,000,000 shares authorized for the Portfolios in total. |
| (a) | Consolidated Statement of Assets and Liabilities. |
The accompanying notes are an integral part of these financial statements.
84 Annual Report
| Lazard Opportunistic Strategies Portfolio | Lazard Real Assets Portfolio (a) | |||||||||
| $ | 30,649,811 | $ | 29,606,616 | |||||||
| 6,047,516 | (5,548,458 | ) | ||||||||
| $ | 36,697,327 | $ | 24,058,158 | |||||||
| $ | 36,572,813 | $ | 23,754,937 | |||||||
| 3,633,121 | 2,456,917 | |||||||||
| $ | 10.07 | $ | 9.67 | |||||||
| $ | 124,514 | $ | 263,393 | |||||||
| 12,446 | 27,219 | |||||||||
| $ | 10.00 | $ | 9.68 | |||||||
| — | $ | 39,828 | ||||||||
| — | 4,121 | |||||||||
| — | $ | 9.66 | ||||||||
| $ | 31,717,556 | $ | 21,926,330 | |||||||
| $ | — | $ | — | |||||||
| $ | — | $ | — | |||||||
| $ | — | $ | 15,783 | |||||||
Annual Report 85
The Lazard Funds, Inc. Statements of Operations
| For the Period Ended December 31, 2023 | Lazard Enhanced Opportunities Portfolio | Lazard Global Dynamic Multi-Asset Portfolio | ||||||||
| Investment Income (Loss) | ||||||||||
| Income | ||||||||||
| Interest | $ | 1,990,396 | $ | 213,477 | ||||||
| Dividends# | 1,735 | 123,309 | ||||||||
| Total investment income* | 1,992,131 | 336,786 | ||||||||
| Expenses | ||||||||||
| Management fees (Note 3) | 369,445 | 91,297 | ||||||||
| Professional services | 96,266 | 46,243 | ||||||||
| Custodian fees | 86,182 | 94,499 | ||||||||
| Registration fees | 36,252 | 32,036 | ||||||||
| Administration fees | 28,929 | 25,494 | ||||||||
| Shareholders’ reports | 24,925 | 9,093 | ||||||||
| Shareholders’ services | 12,834 | 10,927 | ||||||||
| Directors’ fees and expenses | 7,541 | 5,805 | ||||||||
| Distribution fees (Open Shares) | 1,214 | 390 | ||||||||
| Amortization of offering costs (Note 2(i)) | — | — | ||||||||
| Other^ | 6,852 | 5,208 | ||||||||
| Total gross expenses before expenses on securities sold short | 670,440 | 320,992 | ||||||||
| Broker expense on securities sold short | 663,251 | — | ||||||||
| Dividend expense on securities sold short | 316,957 | — | ||||||||
| Total gross expenses | 1,650,648 | 320,992 | ||||||||
| Management fees waived and expenses reimbursed | (182,307 | ) | (217,814 | ) | ||||||
| Total net expenses | 1,468,341 | 103,178 | ||||||||
| Net investment income (loss) | 523,790 | 233,608 | ||||||||
| Net Realized and Unrealized Gain (Loss) | ||||||||||
| Net realized gain (loss) on: | ||||||||||
| Investments | (1,431,686 | ) | (369,228 | ) | ||||||
| Securities sold short | 547,449 | — | ||||||||
| Foreign currency transactions | 20,635 | (5,459 | ) | |||||||
| Forward currency contracts | (26,177 | ) | 26,961 | |||||||
| Futures contracts | — | — | ||||||||
| Written options | 108,157 | — | ||||||||
| Swap agreements | 891,516 | — | ||||||||
| Total net realized gain (loss) | 109,894 | (347,726 | ) | |||||||
| Net change in unrealized appreciation (depreciation) on: | ||||||||||
| Investments | 3,303,819 | 1,441,433 | ||||||||
| Securities sold short | (2,089,411 | ) | — | |||||||
| Foreign currency translations | (70 | ) | 1,532 | |||||||
| Forward currency contracts | 6,882 | (153,453 | ) | |||||||
| Futures contracts | — | — | ||||||||
| Written options | 2,791 | — | ||||||||
| Swap agreements | 723,414 | — | ||||||||
| Total net change in unrealized appreciation (depreciation) | 1,947,425 | 1,289,512 | ||||||||
| Net realized and unrealized gain (loss) | 2,057,319 | 941,786 | ||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 2,581,109 | $ | 1,175,394 | ||||||
| *# Net of foreign withholding taxes of | $ | 607 | $ | 6,994 | ||||||
| ^ Includes interest on line of credit of | $ | 449 | $ | 79 | ||||||
# Dividend income for Lazard Global Dynamic Multi Asset Portfolio includes $762 of refunds received as a result of European Union dividend withholding tax reclaim filings. The amount of foreign withholding taxes without such refunds from European Union dividend withholding tax reclaim filings would have been $7,756. Refer to Note 2(b) in the Notes to Financial Statements for further information.
(a) Consolidated Statement of Operations.
The accompanying notes are an integral part of these financial statements.
86 Annual Report
| Lazard Opportunistic Strategies Portfolio | Lazard Real Assets Portfolio (a) | |||||||||
| $ | 117,244 | $ | 558,898 | |||||||
| 953,840 | 806,565 | |||||||||
| 1,071,084 | 1,365,463 | |||||||||
| 452,524 | 216,360 | |||||||||
| 52,291 | 57,286 | |||||||||
| 33,056 | 65,495 | |||||||||
| 33,299 | 22,917 | |||||||||
| 29,724 | 28,229 | |||||||||
| 15,923 | 15,499 | |||||||||
| 13,290 | 12,309 | |||||||||
| 8,379 | 17,247 | |||||||||
| 290 | 1,344 | |||||||||
| — | 2,791 | |||||||||
| 6,573 | 11,423 | |||||||||
| 645,349 | 450,900 | |||||||||
| — | — | |||||||||
| — | — | |||||||||
| 645,349 | 450,900 | |||||||||
| (183,167 | ) | (182,995 | ) | |||||||
| 462,182 | 267,905 | |||||||||
| 608,902 | 1,097,558 | |||||||||
| 2,233,951 | 1,306,596 | |||||||||
| — | — | |||||||||
| — | (3,081 | ) | ||||||||
| — | (10,381 | ) | ||||||||
| — | (1,047,410 | ) | ||||||||
| — | — | |||||||||
| 217,651 | (380,756 | ) | ||||||||
| 2,451,602 | (135,032 | ) | ||||||||
| 817,762 | 549,957 | |||||||||
| — | — | |||||||||
| — | 439 | |||||||||
| — | (5,998 | ) | ||||||||
| — | 287,144 | |||||||||
| — | — | |||||||||
| 150,608 | (352,208 | ) | ||||||||
| 968,370 | 479,334 | |||||||||
| 3,419,972 | 344,302 | |||||||||
| $ | 4,028,874 | $ | 1,441,860 | |||||||
| $ | — | $ | 32,256 | |||||||
| $ | — | $ | — | |||||||
Annual Report 87
The Lazard Funds, Inc. Statements of Changes in Net Assets
| Lazard Enhanced Opportunities Portfolio | ||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||
| Increase (Decrease) in Net Assets | ||||||||||
| Operations | ||||||||||
| Net investment income (loss) | $ | 523,790 | $ | 1,550,942 | ||||||
| Net realized gain (loss) | 109,894 | (4,667,128 | ) | |||||||
| Net change in unrealized appreciation (depreciation) | 1,947,425 | (2,328,484 | ) | |||||||
| Net increase (decrease) in net assets resulting from operations | 2,581,109 | (5,444,670 | ) | |||||||
| Distributions to shareholders (Note 2(i)) | ||||||||||
| Net investment income and net realized gains | ||||||||||
| Institutional Shares | (600,179 | ) | (3,931,443 | ) | ||||||
| Open Shares | (7,265 | ) | (28,882 | ) | ||||||
| R6 Shares | — | — | ||||||||
| Return of capital | ||||||||||
| Institutional Shares | — | (629,300 | ) | |||||||
| Open Shares | — | (4,623 | ) | |||||||
| Net decrease in net assets resulting from distributions | (607,444 | ) | (4,594,248 | ) | ||||||
| Capital stock transactions | ||||||||||
| Net proceeds from sales | ||||||||||
| Institutional Shares | 10,810,000 | 56,827,363 | ||||||||
| Open Shares | 104,060 | 356,167 | ||||||||
| R6 Shares | — | — | ||||||||
| Net proceeds from reinvestment of distributions | ||||||||||
| Institutional Shares | 600,179 | 4,560,743 | ||||||||
| Open Shares | 7,265 | 33,505 | ||||||||
| R6 Shares | — | — | ||||||||
| Cost of shares redeemed | ||||||||||
| Institutional Shares | (15,673,930 | ) | (158,103,819 | ) | ||||||
| Open Shares | (61,118 | ) | (673,149 | ) | ||||||
| Net increase (decrease) in net assets from capital stock transactions | (4,213,544 | ) | (96,999,190 | ) | ||||||
| Total increase (decrease) in net assets | (2,239,879 | ) | (107,038,108 | ) | ||||||
| Net assets at beginning of period | 39,572,940 | 146,611,048 | ||||||||
| Net assets at end of period | $ | 37,333,061 | $ | 39,572,940 | ||||||
The accompanying notes are an integral part of these financial statements.
88 Annual Report
| Lazard Global Dynamic Multi-Asset Portfolio | Lazard Opportunistic Strategies Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| $ | 233,608 | $ | 280,610 | $ | 608,902 | $ | 672,837 | |||||||||
| (347,726 | ) | 17,464 | 2,451,602 | (432,746 | ) | |||||||||||
| 1,289,512 | (3,594,600 | ) | 968,370 | (11,534,546 | ) | |||||||||||
| 1,175,394 | (3,296,526 | ) | 4,028,874 | (11,294,455 | ) | |||||||||||
| (158,991 | ) | (532,887 | ) | (1,109,144 | ) | (2,115,374 | ) | |||||||||
| (2,349 | ) | (6,101 | ) | (3,421 | ) | (4,294 | ) | |||||||||
| — | — | — | — | |||||||||||||
| — | — | — | (17,143 | ) | ||||||||||||
| — | — | — | (35 | ) | ||||||||||||
| (161,340 | ) | (538,988 | ) | (1,112,565 | ) | (2,136,846 | ) | |||||||||
| 20,497 | 3,318,612 | 274,113 | 279,306 | |||||||||||||
| 13,099 | 864 | 9,484 | 6,366 | |||||||||||||
| — | — | — | — | |||||||||||||
| 158,991 | 532,887 | 1,024,786 | 2,021,850 | |||||||||||||
| 2,349 | 6,101 | 3,124 | 3,996 | |||||||||||||
| — | — | — | — | |||||||||||||
| (3,752,462 | ) | (4,765,296 | ) | (23,045,496 | ) | (12,134,042 | ) | |||||||||
| (28,360 | ) | (13,381 | ) | (4,172 | ) | (31,698 | ) | |||||||||
| (3,585,886 | ) | (920,213 | ) | (21,738,161 | ) | (9,854,222 | ) | |||||||||
| (2,571,832 | ) | (4,755,727 | ) | (18,821,852 | ) | (23,285,523 | ) | |||||||||
| 13,076,850 | 17,832,577 | 55,519,179 | 78,804,702 | |||||||||||||
| $ | 10,505,018 | $ | 13,076,850 | $ | 36,697,327 | $ | 55,519,179 | |||||||||
Annual Report 89
| Lazard Enhanced Opportunities Portfolio | ||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||
| Shares issued and redeemed | ||||||||||
| Institutional Shares | ||||||||||
| Shares outstanding at beginning of period | $ | 5,067,123 | $ | 15,584,880 | ||||||
| Shares sold | 1,336,263 | 6,382,326 | ||||||||
| Shares issued to shareholders from reinvestment of distributions | 73,914 | 570,944 | ||||||||
| Shares redeemed | (1,947,734 | ) | (17,471,027 | ) | ||||||
| Net increase (decrease) | (537,557 | ) | (10,517,757 | ) | ||||||
| Shares outstanding at end of period | 4,529,566 | 5,067,123 | ||||||||
| Open Shares | ||||||||||
| Shares outstanding at beginning of period | 55,974 | 82,674 | ||||||||
| Shares sold | 12,827 | 42,821 | ||||||||
| Shares issued to shareholders from reinvestment of distributions | 891 | 4,226 | ||||||||
| Shares redeemed | (7,602 | ) | (73,747 | ) | ||||||
| Net increase (decrease) | 6,116 | (26,700 | ) | |||||||
| Shares outstanding at end of period | 62,090 | 55,974 | ||||||||
The accompanying notes are an integral part of these financial statements.
90 Annual Report
| Lazard Global Dynamic Multi-Asset Portfolio | Lazard Opportunistic Strategies Portfolio | |||||||||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | Year Ended December 31, 2023 | Year Ended December 31, 2022 | |||||||||||||
| $ | 1,600,084 | $ | 1,746,408 | $ | 5,885,634 | $ | 6,871,003 | |||||||||
| 2,483 | 358,853 | 28,033 | 28,705 | |||||||||||||
| 19,389 | 65,311 | 102,376 | 205,623 | |||||||||||||
| (452,217 | ) | (570,488 | ) | (2,382,922 | ) | (1,219,697 | ) | |||||||||
| (430,345 | ) | (146,324 | ) | (2,252,513 | ) | (985,369 | ) | |||||||||
| 1,169,739 | 1,600,084 | 3,633,121 | 5,885,634 | |||||||||||||
| 20,637 | 21,426 | 11,545 | 13,824 | |||||||||||||
| 1,569 | 94 | 1,015 | 633 | |||||||||||||
| 289 | 752 | 314 | 407 | |||||||||||||
| (3,467 | ) | (1,635 | ) | (428 | ) | (3,319 | ) | |||||||||
| (1,609 | ) | (789 | ) | 901 | (2,279 | ) | ||||||||||
| 19,028 | 20,637 | 12,446 | 11,545 | |||||||||||||
Annual Report 91
| Lazard Real Assets Portfolio (a) | |||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||
| Increase (Decrease) in Net Assets | |||||||||
| Operations | |||||||||
| Net investment income (loss) | $ | 1,097,558 | $ | 606,567 | |||||
| Net realized gain (loss) | (135,032 | ) | (665,201 | ) | |||||
| Net change in unrealized appreciation (depreciation) | 479,334 | (3,404,020 | ) | ||||||
| Net increase (decrease) in net assets resulting from operations | 1,441,860 | (3,462,654 | ) | ||||||
| Distributions to shareholders (Note 2(i)) | |||||||||
| Net investment income and net realized gains | |||||||||
| Institutional Shares | (982,186 | ) | (2,459,340 | ) | |||||
| Open Shares | (11,657 | ) | (66,131 | ) | |||||
| R6 Shares | (780 | ) | (61 | ) | |||||
| Return of capital | |||||||||
| Institutional Shares | — | — | |||||||
| Open Shares | — | — | |||||||
| Net decrease in net assets resulting from distributions | (994,623 | ) | (2,525,532 | ) | |||||
| Capital stock transactions | |||||||||
| Net proceeds from sales | |||||||||
| Institutional Shares | 2,147,217 | 5,377,839 | |||||||
| Open Shares | 18,711 | 2,117,160 | |||||||
| R6 Shares | 37,374 | 1,000 | |||||||
| Net proceeds from reinvestment of distributions | |||||||||
| Institutional Shares | 973,887 | 2,328,285 | |||||||
| Open Shares | 11,657 | 66,131 | |||||||
| R6 Shares | 780 | 61 | |||||||
| Cost of shares redeemed | |||||||||
| Institutional Shares | (13,710,507 | ) | (4,128,233 | ) | |||||
| Open Shares | (623,450 | ) | (1,189,885 | ) | |||||
| Net increase (decrease) in net assets from capital stock transactions | (11,144,331 | ) | 4,572,358 | ||||||
| Total increase (decrease) in net assets | (10,697,094 | ) | (1,415,828 | ) | |||||
| Net assets at beginning of period | 34,755,252 | 36,171,080 | |||||||
| Net assets at end of period | $ | 24,058,158 | $ | 34,755,252 | |||||
The accompanying notes are an integral part of these financial statements.
92 Annual Report
| Lazard Real Assets Portfolio (a) | |||||||||
| Year Ended December 31, 2023 | Year Ended December 31, 2022 | ||||||||
| Shares issued and redeemed | |||||||||
| Institutional Shares | |||||||||
| Shares outstanding at beginning of period | $ | 3,552,832 | $ | 3,212,708 | |||||
| Shares sold | 227,470 | 508,999 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 103,204 | 239,014 | |||||||
| Shares redeemed | (1,426,589 | ) | (407,889 | ) | |||||
| Net increase (decrease) | (1,095,915 | ) | 340,124 | ||||||
| Shares outstanding at end of period | 2,456,917 | 3,552,832 | |||||||
| Open Shares | |||||||||
| Shares outstanding at beginning of period | 90,697 | 12,859 | |||||||
| Shares sold | 1,986 | 182,688 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 1,245 | 6,795 | |||||||
| Shares redeemed | (66,709 | ) | (111,645 | ) | |||||
| Net increase (decrease) | (63,478 | ) | 77,838 | ||||||
| Shares outstanding at end of period | 27,219 | 90,697 | |||||||
| R6 Shares† | |||||||||
| Shares outstanding at beginning of period | 99 | — | |||||||
| Shares sold | 3,940 | 93 | |||||||
| Shares issued to shareholders from reinvestment of distributions | 82 | 6 | |||||||
| Net increase (decrease) | 4,022 | 99 | |||||||
| Shares outstanding at end of period | 4,121 | 99 | |||||||
| † | The inception date for the Real Assets Portfolio R6 Shares was July 22, 2022. |
| (a) | Consolidated Statements of Changes in Net Assets. |
The accompanying notes are an integral part of these financial statements.
Annual Report 93
The Lazard Funds, Inc. Financial Highlights
LAZARD ENHANCED OPPORTUNITIES PORTFOLIO
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 7.72 | $ | 9.36 | $ | 9.13 | $ | 8.84 | $ | 8.31 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.11 | 0.18 | 0.14 | # | 0.20 | 0.10 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.43 | (0.86 | ) | 0.48 | 0.69 | 0.52 | |||||||||||||||
| Total from investment operations | 0.54 | (0.68 | ) | 0.62 | 0.89 | 0.62 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.13 | ) | (0.40 | ) | (0.05 | ) | (0.22 | ) | — | ||||||||||||
| Net realized gains | — | (0.49 | ) | (0.34 | ) | (0.38 | ) | (0.09 | ) | ||||||||||||
| Return of capital | — | (0.07 | ) | — | — | — | |||||||||||||||
| Total distributions | (0.13 | ) | (0.96 | ) | (0.39 | ) | (0.60 | ) | (0.09 | ) | |||||||||||
| Net asset value, end of period | $ | 8.13 | $ | 7.72 | $ | 9.36 | $ | 9.13 | $ | 8.84 | |||||||||||
| Total Return (b) | 7.02 | % | –7.39 | % | 6.81 | %# | 10.11 | % | 7.44 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 36,827 | $ | 39,139 | $ | 145,836 | $ | 19,537 | $ | 9,223 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 3.77 | % | 2.41 | % | 1.70 | %# | 2.23 | % | 2.71 | % | |||||||||||
| Gross expenses | 4.23 | % | 2.51 | % | 2.05 | % | 3.79 | % | 5.52 | % | |||||||||||
| Gross expenses, excluding expenses on securities sold short | 1.71 | % | 1.35 | % | 1.54 | % | 2.82 | % | 4.06 | % | |||||||||||
| Net investment income (loss) | 1.35 | % | 2.03 | % | 1.47 | %# | 2.22 | % | 1.19 | % | |||||||||||
| Portfolio turnover rate: | |||||||||||||||||||||
| Excluding securities sold short | 187 | % | 178 | % | 168 | % | 167 | % | 272 | % | |||||||||||
| Including securities sold short | 270 | % | 233 | % | 341 | % | 241 | % | 354 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
94 Annual Report
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 7.75 | $ | 9.37 | $ | 9.13 | $ | 8.82 | $ | 8.30 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.09 | 0.15 | 0.13 | # | 0.16 | 0.10 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.42 | (0.84 | ) | 0.47 | 0.70 | 0.51 | |||||||||||||||
| Total from investment operations | 0.51 | (0.69 | ) | 0.60 | 0.86 | 0.61 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.11 | ) | (0.32 | ) | (0.02 | ) | (0.17 | ) | — | ||||||||||||
| Net realized gains | — | (0.49 | ) | (0.34 | ) | (0.38 | ) | (0.09 | ) | ||||||||||||
| Return of capital | — | (0.12 | ) | — | — | — | |||||||||||||||
| Total distributions | (0.11 | ) | (0.93 | ) | (0.36 | ) | (0.55 | ) | (0.09 | ) | |||||||||||
| Net asset value, end of period | $ | 8.15 | $ | 7.75 | $ | 9.37 | $ | 9.13 | $ | 8.82 | |||||||||||
| Total Return (b) | 6.63 | % | –7.45 | % | 6.55 | %# | 9.83 | % | 7.33 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 506 | $ | 434 | $ | 775 | $ | 168 | $ | 123 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 4.02 | % | 2.89 | % | 1.92 | %# | 2.45 | % | 2.83 | % | |||||||||||
| Gross expenses | 5.54 | % | 4.34 | % | 2.99 | % | 4.94 | % | 13.76 | % | |||||||||||
| Gross expenses, excluding expenses on securities sold short | 3.02 | % | 2.95 | % | 2.52 | % | 3.99 | % | 12.30 | % | |||||||||||
| Net investment income (loss) | 1.13 | % | 1.67 | % | 1.42 | %# | 1.75 | % | 1.10 | % | |||||||||||
| Portfolio turnover rate: | |||||||||||||||||||||
| Excluding securities sold short | 187 | % | 178 | % | 168 | % | 167 | % | 272 | % | |||||||||||
| Including securities sold short | 270 | % | 233 | % | 341 | % | 241 | % | 354 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 95
| # | A one-time voluntary reimbursement by the administrator increased the net investment income per share amount of $0.01 per share. For Institutional Shares and Open Shares, the one-time voluntary reimbursement by the administrator increased the total return ratio by 0.11%, decreased the net expense ratios by 0.07% and 0.06% respectively and increased the net investment income (loss) ratio by 0.06%. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
96 Annual Report
LAZARD GLOBAL DYNAMIC MULTI-ASSET PORTFOLIO
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| the period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 8.07 | $ | 10.09 | $ | 10.67 | $ | 10.78 | $ | 9.27 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.17 | * | 0.15 | 0.10 | 0.08 | 0.14 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.73 | (1.87 | ) | 1.18 | 0.02 | 1.51 | |||||||||||||||
| Total from investment operations | 0.90 | (1.72 | ) | 1.28 | 0.10 | 1.65 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | — | — | (0.16 | ) | (0.21 | ) | (0.14 | ) | |||||||||||||
| Net realized gains | (0.13 | ) | (0.30 | ) | (1.70 | ) | — | — | |||||||||||||
| Total distributions | (0.13 | ) | (0.30 | ) | (1.86 | ) | (0.21 | ) | (0.14 | ) | |||||||||||
| Net asset value, end of period | $ | 8.84 | $ | 8.07 | $ | 10.09 | $ | 10.67 | $ | 10.78 | |||||||||||
| Total Return (b) | 11.22 | %* | –17.05 | % | 12.17 | % | 1.00 | % | 17.80 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 10,338 | $ | 12,911 | $ | 17,617 | $ | 57,925 | $ | 47,481 | |||||||||||
| Ratios to average net assets : | |||||||||||||||||||||
| Net expenses | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | 0.90 | % | |||||||||||
| Gross expenses | 2.76 | % | 2.16 | % | 1.70 | % | 1.32 | % | 1.45 | % | |||||||||||
| Net investment income (loss) | 2.05 | %* | 1.74 | % | 0.91 | % | 0.84 | % | 1.36 | % | |||||||||||
| Portfolio turnover rate | 89 | % | 108 | % | 83 | % | 173 | % | 125 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 97
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| the period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 8.03 | $ | 10.06 | $ | 10.68 | $ | 10.78 | $ | 9.27 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.15 | * | 0.13 | 0.08 | 0.06 | 0.11 | |||||||||||||||
| Net realized and unrealized gain (loss) | 0.72 | (1.86 | ) | 1.16 | 0.03 | 1.51 | |||||||||||||||
| Total from investment operations | 0.87 | (1.73 | ) | 1.24 | 0.09 | 1.62 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | — | — | (0.16 | ) | (0.19 | ) | (0.11 | ) | |||||||||||||
| Net realized gains | (0.13 | ) | (0.30 | ) | (1.70 | ) | — | — | |||||||||||||
| Total distributions | (0.13 | ) | (0.30 | ) | (1.86 | ) | (0.19 | ) | (0.11 | ) | |||||||||||
| Net asset value, end of period | $ | 8.77 | $ | 8.03 | $ | 10.06 | $ | 10.68 | $ | 10.78 | |||||||||||
| Total Return (b) | 10.90 | %* | –17.20 | % | 11.78 | % | 0.84 | % | 17.46 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 167 | $ | 166 | $ | 216 | $ | 236 | $ | 293 | |||||||||||
| Ratios to average net assets : | |||||||||||||||||||||
| Net expenses | 1.15 | % | 1.15 | % | 1.15 | % | 1.15 | % | 1.18 | % | |||||||||||
| Gross expenses | 6.27 | % | 4.85 | % | 3.95 | % | 3.09 | % | 5.45 | % | |||||||||||
| Net investment income (loss) | 1.78 | %* | 1.48 | % | 0.69 | % | 0.61 | % | 1.10 | % | |||||||||||
| Portfolio turnover rate | 89 | % | 108 | % | 83 | % | 173 | % | 125 | % | |||||||||||
| * | There was less than a $0.01 impact on the net investment income per share and no impact on the total return of the Portfolio as a result of European Union dividend withholding tax reclaims filings for the year ended December 31, 2023. There was a 0.01% impact on the net investment income (loss) ratio of the Portfolio. Refer to Note 2(b) in the Notes to Financial Statements for further information. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
98 Annual Report
LAZARD OPPORTUNISTIC STRATEGIES PORTFOLIO
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.41 | $ | 11.45 | $ | 10.58 | $ | 9.87 | $ | 8.74 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.13 | 0.10 | 0.05 | 0.05 | 0.10 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.83 | (1.80 | ) | 1.32 | 0.88 | 1.23 | |||||||||||||||
| Total from investment operations | 0.96 | (1.70 | ) | 1.37 | 0.93 | 1.33 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.15 | ) | (0.10 | ) | (0.04 | ) | (0.05 | ) | (0.12 | ) | |||||||||||
| Net realized gains | (0.15 | ) | (0.24 | ) | (0.46 | ) | (0.17 | ) | (0.08 | ) | |||||||||||
| Return of capital | — | — | (b) | — | — | — | |||||||||||||||
| Total distributions | (0.30 | ) | (0.34 | ) | (0.50 | ) | (0.22 | ) | (0.20 | ) | |||||||||||
| Net asset value, end of period | $ | 10.07 | $ | 9.41 | $ | 11.45 | $ | 10.58 | $ | 9.87 | |||||||||||
| Total Return (c) | 10.29 | % | –14.93 | % | 12.96 | % | 9.47 | % | 15.16 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 36,573 | $ | 55,411 | $ | 78,647 | $ | 78,116 | $ | 83,509 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.02 | % | 1.03 | % | 1.11 | % | 1.04 | % | 1.22 | % | |||||||||||
| Gross expenses | 1.41 | % | 1.32 | % | 1.28 | % | 1.30 | % | 1.43 | % | |||||||||||
| Gross expenses, excluding expenses on securities sold short | 1.41 | %* | 1.32 | % | 1.19 | % | 1.29 | % | 1.23 | % | |||||||||||
| Net investment income (loss) | 1.35 | % | 1.03 | % | 0.40 | % | 0.55 | % | 1.08 | % | |||||||||||
| Portfolio turnover rate: | |||||||||||||||||||||
| Excluding securities sold short | 109 | % | 128 | % | 65 | % | 88 | % | 82 | % | |||||||||||
| Including securities sold short | NA | %* | 134 | % | 65 | % | 94 | % | 99 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 99
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.36 | $ | 11.38 | $ | 10.52 | $ | 9.82 | $ | 8.69 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.12 | 0.07 | 0.02 | 0.03 | 0.07 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.80 | (1.77 | ) | 1.31 | 0.86 | 1.23 | |||||||||||||||
| Total from investment operations | 0.92 | (1.70 | ) | 1.33 | 0.89 | 1.30 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.13 | ) | (0.08 | ) | (0.01 | ) | (0.02 | ) | (0.09 | ) | |||||||||||
| Net realized gains | (0.15 | ) | (0.24 | ) | (0.46 | ) | (0.17 | ) | (0.08 | ) | |||||||||||
| Return of capital | — | — | (b) | — | — | — | |||||||||||||||
| Total distributions | (0.28 | ) | (0.32 | ) | (0.47 | ) | (0.19 | ) | (0.17 | ) | |||||||||||
| Net asset value, end of period | $ | 10.00 | $ | 9.36 | $ | 11.38 | $ | 10.52 | $ | 9.82 | |||||||||||
| Total Return (c) | 9.85 | % | –15.06 | % | 12.65 | % | 9.14 | % | 14.91 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 125 | $ | 108 | $ | 157 | $ | 154 | $ | 208 | |||||||||||
| Ratios to average net assets: | |||||||||||||||||||||
| Net expenses | 1.27 | % | 1.28 | % | 1.36 | % | 1.28 | % | 1.51 | % | |||||||||||
| Gross expenses | 6.18 | % | 5.14 | % | 4.06 | % | 7.75 | % | 3.78 | % | |||||||||||
| Gross expenses, excluding expenses on securities sold short | 6.18 | %* | 5.13 | % | 3.97 | % | 7.74 | % | 3.58 | % | |||||||||||
| Net investment income (loss) | 1.25 | % | 0.71 | % | 0.15 | % | 0.31 | % | 0.76 | % | |||||||||||
| Portfolio turnover rate: | |||||||||||||||||||||
| Excluding securities sold short | 109 | % | 128 | % | 65 | % | 88 | % | 82 | % | |||||||||||
| Including securities sold short | NA | %* | 134 | % | 65 | % | 94 | % | 99 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
100 Annual Report
| * | No securities sold short during the year. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Amount is less than $0.01 per share. |
| (c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. |
The accompanying notes are an integral part of these financial statements.
Annual Report 101
LAZARD REAL ASSETS PORTFOLIO^
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Institutional Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.54 | $ | 11.21 | $ | 10.33 | $ | 10.69 | $ | 9.42 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.31 | 0.18 | 0.17 | 0.17 | 0.16 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.10 | (1.12 | ) | 2.04 | (0.12 | ) | 1.35 | ||||||||||||||
| Total from investment operations | 0.41 | (0.94 | ) | 2.21 | 0.05 | 1.51 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.28 | ) | (0.72 | ) | (1.26 | ) | (0.20 | ) | (0.24 | ) | |||||||||||
| Net realized gains | — | (0.01 | ) | (0.07 | ) | (0.21 | ) | — | (b) | ||||||||||||
| Total distributions | (0.28 | ) | (0.73 | ) | (1.33 | ) | (0.41 | ) | (0.24 | ) | |||||||||||
| Net asset value, end of period | $ | 9.67 | $ | 9.54 | $ | 11.21 | $ | 10.33 | $ | 10.69 | |||||||||||
| Total Return (c) | 4.44 | % | –8.45 | % | 21.60 | % | 0.61 | % | 16.07 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 23,755 | $ | 33,888 | $ | 36,027 | $ | 23,959 | $ | 17,515 | |||||||||||
| Ratios to average net assets (d) : | |||||||||||||||||||||
| Net expenses | 0.80 | % | 0.80 | % | 0.80 | % | 0.86 | % | 0.90 | % | |||||||||||
| Gross expenses | 1.32 | % | 1.34 | % | 1.29 | % | 2.13 | % | 2.20 | % | |||||||||||
| Net investment income (loss) | 3.31 | % | 1.61 | % | 1.49 | % | 1.73 | % | 1.59 | % | |||||||||||
| Portfolio turnover rate | 68 | % | 182 | % | 35 | % | 109 | % | 44 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
102 Annual Report
| Selected data for a share of capital stock outstanding throughout | Year Ended | ||||||||||||||||||||
| each period | 12/31/23 | 12/31/22 | 12/31/21 | 12/31/20 | 12/31/19 | ||||||||||||||||
| Open Shares | |||||||||||||||||||||
| Net asset value, beginning of period | $ | 9.55 | $ | 11.22 | $ | 10.34 | $ | 10.67 | $ | 9.41 | |||||||||||
| Income (Loss) from investment operations: | |||||||||||||||||||||
| Net investment income (loss) (a) | 0.28 | 0.18 | 0.13 | 0.17 | 0.14 | ||||||||||||||||
| Net realized and unrealized gain (loss) | 0.11 | (1.15 | ) | 2.05 | (0.14 | ) | 1.33 | ||||||||||||||
| Total from investment operations | 0.39 | (0.97 | ) | 2.18 | 0.03 | 1.47 | |||||||||||||||
| Less distributions from: | |||||||||||||||||||||
| Net investment income | (0.26 | ) | (0.69 | ) | (1.23 | ) | (0.15 | ) | (0.21 | ) | |||||||||||
| Net realized gains | — | (0.01 | ) | (0.07 | ) | (0.21 | ) | — | (b) | ||||||||||||
| Total distributions | (0.26 | ) | (0.70 | ) | (1.30 | ) | (0.36 | ) | (0.21 | ) | |||||||||||
| Net asset value, end of period | $ | 9.68 | $ | 9.55 | $ | 11.22 | $ | 10.34 | $ | 10.67 | |||||||||||
| Total Return (c) | 4.16 | % | –8.68 | % | 21.28 | % | 0.42 | % | 15.70 | % | |||||||||||
| Ratios and Supplemental Data: | |||||||||||||||||||||
| Net assets, end of period (in thousands) | $ | 263 | $ | 866 | $ | 144 | $ | 116 | $ | 65 | |||||||||||
| Ratios to average net assets (d): | |||||||||||||||||||||
| Net expenses | 1.05 | % | 1.05 | % | 1.05 | % | 1.13 | % | 1.10 | % | |||||||||||
| Gross expenses | 2.24 | % | 2.15 | % | 5.90 | % | 4.64 | % | 23.75 | % | |||||||||||
| Net investment income (loss) | 2.93 | % | 1.68 | % | 1.16 | % | 1.77 | % | 1.39 | % | |||||||||||
| Portfolio turnover rate | 68 | % | 182 | % | 35 | % | 109 | % | 44 | % | |||||||||||
The accompanying notes are an integral part of these financial statements.
Annual Report 103
| Selected data for a share of capital stock outstanding throughout | Year Ended | For the Period 7/22/22* to | |||||||||
| each period | 12/31/23 | 12/31/22 | |||||||||
| R6 Shares | |||||||||||
| Net asset value, beginning of period | $ | 9.54 | $ | 10.84 | |||||||
| Income (Loss) from investment operations: | |||||||||||
| Net investment income (loss) (a) | 0.34 | 0.11 | |||||||||
| Net realized and unrealized gain (loss) | 0.07 | (0.75 | ) | ||||||||
| Total from investment operations | 0.41 | (0.64 | ) | ||||||||
| Less distributions from: | |||||||||||
| Net investment income | (0.29 | ) | (0.65 | ) | |||||||
| Net realized gains | — | (0.01 | ) | ||||||||
| Total distributions | (0.29 | ) | (0.66 | ) | |||||||
| Net asset value, end of period | $ | 9.66 | $ | 9.54 | |||||||
| Total Return (c) | 4.38 | % | –5.92 | % | |||||||
| Ratios and Supplemental Data: | |||||||||||
| Net assets, end of period (in thousands) | $ | 40 | $ | 1 | |||||||
| Ratios to average net assets (d): | |||||||||||
| Net expenses | 0.75 | % | 0.75 | % | |||||||
| Gross expenses | 32.62 | % | 595.55 | % | |||||||
| Net investment income (loss) | 3.69 | % | 2.34 | % | |||||||
| Portfolio turnover rate | 68 | % | 182 | % | |||||||
| ^ | Consolidated Financial Highlights. |
| * | The inception date for the R6 Shares was July 22, 2022. |
| (a) | Net investment income (loss) has been computed using the average shares method. |
| (b) | Amount is less than $0.01 per share. |
| (c) | Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio may have been waived or reimbursed by the Investment Manager, State Street or SS&C GIDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. Returns for a period of less than one year are not annualized. |
| (d) | Annualized for a period of less than one year except for non-recurring expenses. |
The accompanying notes are an integral part of these financial statements.
104 Annual Report
The Lazard Funds, Inc. Notes to Financial Statements
December 31, 2023
1. Organization
The Lazard Funds, Inc. was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of December 31, 2023, the Fund was comprised of twenty-seven no-load portfolios (each referred to as a “Portfolio”). This report includes only the financial statements of the Lazard Enhanced Opportunities Portfolio (“Enhanced Opportunities”), the Lazard Global Dynamic Multi-Asset Portfolio (“Global Dynamic Multi-Asset”), the Lazard Opportunistic Strategies Portfolio (“Opportunistic Strategies”) and Lazard Real Assets Portfolio (“Real Assets”). The financial statements of the other twenty-three Portfolios are presented separately.
The Global Dynamic Multi-Asset, Opportunistic Strategies, and Real Assets Portfolios are operated as “diversified” funds, as defined in the 1940 Act. The Lazard Enhanced Opportunities Portfolio is operated as a “non-diversified” fund, as defined in the 1940 Act.
The Fund currently offers Institutional Shares and Open Shares and certain Portfolios offer R6 Shares. Each share class is identical except as to minimum investment requirements; the services offered to, and expenses borne by, each class; and the availability of Service Payments (as defined in the Fund’s prospectus).
Lazard Real Assets Portfolio has a wholly-owned subsidiary, Lazard Real Assets Portfolio, Ltd. (the “Subsidiary”), organized under the laws of the Cayman Islands. The Subsidiary acts as an investment vehicle for the Portfolio in order to effect certain investments on behalf of the Portfolio, consistent with its investment objective and policies as described in its prospectus. In addition to investing directly in commodity-linked instruments, the Portfolio may gain exposure to the commodities markets by investing up to 25% of its total assets in the Subsidiary. The financial statements of the Portfolio have been consolidated and include the accounts of both the Portfolio and the Subsidiary. All inter-company balances and transactions have been eliminated in consolidation. As of December 31, 2023, net assets of the Portfolio were $24,058,158 of which $2,723,652, or 11.32%, represented the Portfolio’s ownership of all issued shares and voting rights of the Subsidiary.
Annual Report 105
2. Significant Accounting Policies
The accompanying financial statements are presented in conformity with GAAP. The Fund is an investment company and therefore applies specialized accounting guidance in accordance with Accounting Standards Codification Topic 946. The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of the financial statements:
(a) Valuation of Investments—Equity securities traded on a securities exchange or market, including exchange-traded option contracts, rights and warrants, and exchange traded funds, are valued at the last reported sales price (for US listed equity securities) or the closing price (for non-US listed equity securities) on the exchange or market on which the security is principally traded or, for securities trading on the Nasdaq, the Nasdaq Official Closing Price. If there is no available closing price for a non-US listed equity security, the last reported sales price is used. If there are no reported sales of a security on the valuation date, the security is valued at the most recent quoted bid price on such date reported by such principal exchange or market. Futures contracts are valued at the settlement price on the exchange on which the contract is principally traded. Over the counter swap agreements are valued by an independent pricing service and centrally cleared swaps are valued at the last reported sale on the clearing exchange. Forward currency contracts generally are valued using quotations from an independent pricing service. Investments in money market funds are valued at the fund’s net asset value (“NAV”) per share.
Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by independent pricing services which are based on, among other things, trading in securities with similar characteristics, brokers’ quotations and/or a matrix system which considers such factors as other security prices, yields and maturities.
Trading on certain non-US securities exchanges or markets, such as those in Europe and Asia, ordinarily may be completed before the close of business on each business day in New York (i.e., a
106 Annual Report
day on which the New York Stock Exchange (the “NYSE”) is open). In addition, securities in non-US countries, may not trade on all business days in New York and on which the NAV of a Portfolio is calculated.
Events occurring after the close of trading on foreign exchanges may affect the fair value of foreign securities as of the close of regular trading on the NYSE, when the Portfolios’ NAVs are calculated. When valuing foreign equity securities, the Portfolios use an independent pricing service that values such securities to reflect market trading that occurs after the close of the applicable foreign markets of comparable securities or other instruments, which have a strong correlation to the fair-valued securities.
The Board of Directors (“The Board”) has designated the Investment Manager to perform fair value determinations pursuant to Rule 2a-5 under the 1940 Act. The Investment Manager has created a Valuation Sub-Committee of the Funds’ Valuation and Liquidity Committee, which may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not to be readily available or reliable. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s portfolio management team also will be considered. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ NAVs.
(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income and dividend expenses on short sales are recorded on the ex-dividend date except for certain dividends from non-US securities where the dividend rate is not available. In such cases, the dividend is recorded as soon as the information is received by a Portfolio. Interest income, if any, is accrued daily. A Portfolio amortizes
Annual Report 107
premiums and accretes discounts on fixed-income securities using the effective yield method.
A Portfolio may be subject to taxes imposed by non-US countries in which it invests. Such taxes are generally based upon income earned or capital gains (realized and/or unrealized). An affected Portfolio accrues and applies such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income earned or capital gains (realized and/or unrealized) from the applicable Portfolio securities.
(c) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Fund are maintained in US dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into US dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into US dollars at the prevailing exchange rates on the respective transaction dates.
The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments.
A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Daily fluctuations in the value of forward currency contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, the Portfolio records a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed. Net realized gain (loss) on foreign currency transactions and forward currency contracts represent net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on the Portfolios’ accounting records and the US dollar
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equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency translations reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.
During the year ended December 31, 2023, the Enhanced Opportunities, Global Dynamic Multi-Asset and Real Assets Portfolios traded in forward currency contracts.
(d) Futures Contracts—Futures contracts are purchased or sold to gain exposure to, or manage exposure from, changes in the value of equity securities or foreign currencies and changes in interest rates.
Futures contracts are exchange-traded agreements between a Portfolio and a counter-party to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, a Portfolio is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash collateral pledged for futures contracts in the Statement of Assets and Liabilities.
Securities may be deposited as initial margin. If applicable, any cash deposited and held on margin is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, a Portfolio agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as receivables (or payables) for variation margin on open futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount of the contract at the time it was closed. The use of futures contracts
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involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest rates, foreign currency exchange rates or underlying assets.
During the year ended December 31, 2023, the Real Assets Portfolio traded in futures contracts.
(e) Swap Agreements—Swap agreements on equity securities involve commitments to pay interest in exchange for a market linked return based on a notional amount. Fixed income swaps involve commitments to pay interest in return for exposure to a specific corporation or market. The counterparty pays out the total return of the security or basket of securities and, in return, receives a regular stream of payments, based on an agreed-upon interest rate. To the extent the total return of the security or basket of securities underlying the transaction exceeds (or falls short of) the offsetting interest rate obligation, a Portfolio will receive a payment from (or make a payment to) the counterparty.
Commodity-linked swap agreements involve commitments to pay interest in exchange for a commodity-linked return based on a notional amount. To the extent the return of the reference commodity or commodity index or basket of reference commodities or commodity indices underlying the transaction exceeds (or falls short of) the offsetting interest rate obligation, a Portfolio will receive a payment from (or make a payment to) the counterparty.
Swap agreements generally are valued by an independent pricing service, and the change in value, if any, is recorded as unrealized appreciation (depreciation) on swap agreements in a Portfolio’s accompanying Statement of Assets and Liabilities. Once the interim payments are settled in cash, the net amount is recorded as realized gain (loss) on swap agreements in a Portfolio’s accompanying Statement of Operations, in addition to any realized gain (loss) recorded upon the termination of swap agreements.
During the year ended December 31, 2023, the Enhanced Opportunities, Opportunistic Strategies and Real Assets Portfolios traded in swap agreements.
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(f) Options Transactions—Put and call options purchased are accounted for in the same manner as portfolio securities. Certain options may be written with premiums to be determined on a future date. The premiums for these options are based upon implied volatility parameters at specified terms. When a Portfolio writes an option, the premium received by the Portfolio is recorded as a liability and is subsequently adjusted to the current market value of the option written. When a Portfolio writes a call option, such option is typically “covered,” meaning that it holds the underlying instrument subject to being called by the option counterparty. When the Portfolio writes a put option, cash is segregated in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash collateral in the Statement of Assets and Liabilities. If a Portfolio writes an option, it bears the market risk of an unfavorable change in the price of the security underlying the written option. The risk of loss is unlimited for uncovered written call options. For uncovered written put options, the risk of loss is limited to the difference between the strike price of the option and the premiums received upon writing the option.
During the year ended December 31, 2023, the Enhanced Opportunities Portfolio traded in options.
(g) Short Sales—A short sale is a transaction in which a Portfolio sells securities it does not own but has borrowed in anticipation of a decline in the market price of the securities. The initial amount of a short sale is recorded as a liability which is marked-to-market daily. Fluctuations in the value of the short liability are recorded as unrealized gains or losses. A Portfolio realizes a gain or loss upon closing of the short sale (returning the security to the counterparty by way of purchase or delivery of a long position owned). Short sales by a Portfolio involve certain risks and special considerations. Possible losses from short sales differ from losses that could be incurred from a purchase of a security because losses from short sales may be unlimited, whereas losses from purchases cannot exceed the total amount invested. The Portfolio may have to pay a fee to borrow the particular security and is liable to the buyer for any dividends or interest payable on securities while those securities are in a short position. These dividends and interest amounts are an expense of the Portfolio. The Portfolio designates collateral consisting of cash, US
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government securities or other liquid assets sufficient to collateralize the market value of short positions.
Proceeds from short sales are generally retained in cash accounts or invested in securities that are cash equivalents. With regard to securities borrowed as of December 31, 2023, pursuant to short sale arrangements, a Portfolio has a right to set off any assets held (including the borrowed securities) or obligations owed to the lender (State Street), in the event of the lender’s default, against any obligations owed by the lender to the Portfolio under any agreement or collateral document. At December 31, 2023, the Enhanced Opportunities Portfolio had pledged $52,589,457 of securities held long as collateral under such arrangements.
For the year ended December 31, 2023, the following Portfolios received proceeds from securities sold short and purchases to cover short positions as follows:
| Portfolio | Proceeds from Securities Sold Short | Purchased to Cover Short Positions | ||||||
| Enhanced Opportunities | $106,678,353 | $116,920,569 | ||||||
(h) Federal Income Taxes—The Fund’s policy is for each Portfolio to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”), and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.
At December 31, 2023, the following Portfolios had unused realized capital loss carryovers which, for federal income tax purposes, could be used to offset future realized capital gains with no expiration date as follows:
| Portfolio | Short-Term | Long-Term | ||||||
| Enhanced Opportunities | $(2,925,427 | ) | $(3,637,914 | ) | ||||
| Global Dynamic Multi-Asset | (102,628 | ) | (207,067 | ) | ||||
| Real Assets | (1,400,857 | ) | — | |||||
Under current tax law, post-October capital losses or certain late-year ordinary losses, as defined by the Code, within the taxable year may be deferred and treated as occurring on the first day of
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the following tax year. For the tax year ended December 31, 2023, the following Portfolios elected to defer such losses as follows:
| Portfolio | Post-October Capital Loss Deferral | Late-Year Ordinary Loss Deferral | ||||||
| Real Assets | $ | — | $ 11,901 | |||||
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) | ||||||||||||
| Enhanced Opportunities | $40,753,827 | $5,333,542 | $9,447,300 | $(4,113,758 | ) | |||||||||||
| Global Dynamic Multi-Asset | 9,262,989 | 1,471,750 | 317,956 | 1,153,794 | ||||||||||||
| Opportunistic Strategies | 31,748,447 | 5,045,596 | 30,891 | 5,014,705 | ||||||||||||
| Real Assets | 29,173,030 | 5,000,024 | 10,947,142 | (5,947,118 | ) | |||||||||||
Management has analyzed the Portfolios, tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on tax returns filed for any open tax years (or expected to be taken on future tax returns). Open tax years are those that remain subject to examination and are based on each tax jurisdiction’s statute of limitations. Each Portfolio files a US federal income tax return annually after its fiscal year-end, which is subject to examination by the Internal Revenue Service for a period of three years from the date of filing.
(i) Dividends and Distributions—For each Portfolio, income dividends are declared and paid annually, except that the Real Assets Portfolio’s dividends from net investment income (if any), will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolios, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders, but may be distributed
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more frequently. Differences in per share distributions, by class, are generally due to differences in class specific expenses.
Net income and realized gains from investments held by the Subsidiary are treated as ordinary income for tax purposes. If a net loss is realized by the Subsidiary in any taxable year, the loss will generally not be available to offset the Real Assets Portfolio’s ordinary income and/or capital gains for that year, or any future tax year.
The Lazard Global Dynamic Multi-Asset Portfolio used equalization during the year on its 2023 tax return, and has elected to treat as a distribution of investment company taxable income and net capital gain the portion of redemption proceeds paid to redeeming shareholders that represents the redeeming shareholders’ portion of the Portfolio’s undistributed investment company taxable income and net capital gain. This practice, which involves the use of equalization accounting, will have the effect of reducing the amount of income and gains that the Portfolio would otherwise be required to distribute as dividends to shareholders in order for the Portfolio to avoid federal income and excise taxes. This practice reduces the amount of distributions required to be made to non-redeeming shareholders and defers the recognition of taxable income by such shareholders. However, since the amount of any undistributed income will be reflected in the value of the Portfolio’s shares, the total return on a shareholder’s investment is not affected by the Portfolio’s use of equalization.
Income and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency transactions, wash sales, net operating losses, distributions redesignations, Treasury Inflation-Protected Securities, currency straddles, capital loss carryforwards, foreign bond bifurcation, organizational expenses, passive foreign investment company gains and losses, deemed dividends on convertible debt, equalization accounting (as described above), straddles, certain fixed-income securities, expenses, derivatives, return of capital distributions, and distributions from real estate investment trusts (“REITs”).
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The book/tax differences relating to shareholder distributions resulted in reclassifications among certain capital accounts as follows:
| Portfolio | Paid in Capital | Distributable Earnings (Accumulated Loss) | ||||||
| Enhanced Opportunities | $ | (118,492 | ) | $ | 118,492 | |||
| Global Dynamic Multi-Asset | (6,075 | ) | 6,075 | |||||
| Opportunistic Strategies | 293,799 | (293,799 | ) | |||||
| Real Assets | (1,149,527 | ) | 1,149,527 | |||||
The tax character of dividends and distributions paid during the years ended December 31, were as follows:
| Ordinary Income | Long-Term Capital Gain | |||||||||||||||
| Portfolio | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Enhanced Opportunities* | $ | 607,444 | $ | 3,638,772 | $ | — | $ | 321,553 | ||||||||
| Global Dynamic Multi-Asset | — | 55,551 | 161,340 | 483,437 | ||||||||||||
| Opportunistic Strategies* | 552,798 | 574,093 | 559,767 | 1,545,575 | ||||||||||||
| Real Assets | 994,623 | 2,477,820 | — | 47,712 | ||||||||||||
| * | Enhanced Opportunities and Opportunistic Strategies Portfolios had return of capital distributions of $633,923 and $17,178 in 2022. |
At December 31, 2023, the components of distributable earnings (accumulated loss), on a tax basis, were as follows:
| Portfolio | Undistributed Ordinary Income (Deferred Ordinary Losses) | Undistributed Long-Term Capital Gain (Deferred Capital Losses) | Net Unrealized Appreciation (Depreciation) Including Foreign Currency | |||||||||
| Enhanced Opportunities | $1,236,000 | $(6,563,341 | ) | $(4,158,089 | ) | |||||||
| Global Dynamic Multi-Asset | 48,448 | (309,695 | ) | 1,126,474 | ||||||||
| Opportunistic Strategies | 86,323 | 946,488 | 5,014,705 | |||||||||
| Real Assets | (11,901 | ) | (1,400,857 | ) | (4,135,700 | ) | ||||||
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(j) Allocation of Expenses—Expenses common to the Fund, Lazard Retirement Series, Inc. and Lazard Global Total Return and Income Fund, Inc. (each a “Lazard Fund” and collectively, the “Lazard Fund Complex”), each a registered management investment company advised by the Investment Manager, not directly chargeable to one or more specific Lazard Funds are allocated to the Fund and among its Portfolios primarily on the basis of relative net assets. Expenses of the Fund not directly chargeable to one or more Portfolios are similarly allocated among the Portfolios primarily on the basis of relative net assets. The Portfolios accrue distribution and service (12b-1) fees to Open Shares. Each Portfolio’s income, expenses (other than class specific expenses) and realized and unrealized gains and losses are allocated proportionally each day between its classes based upon the relative net assets of each class.
(k) Estimates—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets resulting from operations during the reporting period. Actual results could differ from those estimates.
(l) Net Asset Value—The NAV per share for each class of each Portfolio is determined each day the NYSE is open for trading as of the close of regular trading on the NYSE (generally 4:00 p.m. Eastern time). The Fund will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE, and will price its shares as of 4:00 p.m., if the particular disruption directly affects only the NYSE. The Fund values securities and other assets for which market quotations are readily available at market value. Securities and other assets for which current market quotations are not readily available are valued at fair value as determined in good faith in accordance with procedures approved by the Board.
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3. Investment Management, Administration, Custody, Distribution and Transfer Agency Agreements
The Fund, on behalf of the Portfolios, has entered into a management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager manages the investment operations of each Portfolio and the assets of each Portfolio, including the purchase, retention and disposition thereof, in accordance with the Portfolio’s investment objectives, policies, and restrictions, and provides the Portfolios with administrative, operational and compliance assistance services. For its services provided to the Portfolios, the Investment Manager earns a management fee, accrued daily as a percentage of each Portfolio’s average daily net assets and payable by each Portfolio monthly, at the annual rate set forth below:
| Portfolio | Annual Rate | |||
| Enhanced Opportunities | 0.95 | % | ||
| Global Dynamic Multi-Asset | 0.80 | |||
| Opportunistic Strategies | 1.00 | |||
| Real Assets | 0.65 | |||
The Investment Manager provides investment management and other services to the Subsidiary. The Investment Manager does not receive separate compensation from the Subsidiary for providing such services. However, the Real Assets Portfolio pays the Investment Manager based on its net assets, which include the assets of the Subsidiary.
The Investment Manager has voluntarily agreed to waive its fees and, if necessary, reimburse each Portfolio until May 1, 2024 (or such other date as indicated below) if the aggregate direct expenses of a Portfolio, exclusive of taxes, brokerage, interest on borrowings, dividend and interest expenses on securities sold short, fees and expenses of “Acquired Funds” (as defined in Form N-1A), fees and expenses related to filing foreign tax reclaims and extraordinary expenses, exceed an applicable percentage of the value of the Portfolio’s average daily net assets set forth opposite the Portfolio’s name in the table below. The Fund, on behalf of the Portfolio, may deduct from the payment to be made to the Investment Manager under the Management Agreement, or the Investment Manager will bear, such excess expenses.
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| Portfolio | Institutional Shares | Open Shares | R6 Shares | |||||||||
| Enhanced Opportunities | 1.25 | % | 1.50 | % | N/A | % | ||||||
| Global Dynamic Multi-Asset | 0.90 | 1.15 | N/A | |||||||||
| Opportunistic Strategies | 1.02 | 1.27 | N/A | |||||||||
| Real Assets (a) | 0.80 | 1.05 | 0.75 | |||||||||
| (a) | This agreement will continue in effect until May 1, 2033 for the R6 Shares. |
During the year ended December 31, 2023, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:
| Institutional Shares | Open Shares | ||||||||||||||||
| Portfolio | Management Fees Waived | Expenses Reimbursed | Management Fees Waived | Expenses Reimbursed | |||||||||||||
| Enhanced Opportunities | $174,915 | $ — | $4,612 | $2,780 | |||||||||||||
| Global Dynamic Multi-Asset | 90,049 | 119,777 | 1,248 | 6,740 | |||||||||||||
| Opportunistic Strategies | 177,466 | — | 1,161 | 4,540 | |||||||||||||
| Real Assets | 170,371 | — | 3,495 | 2,882 | |||||||||||||
| R6 Shares | |||||||||
| Portfolio | Management Fees Waived | Expenses Reimbursed | |||||||
| Real Assets | $127 | $6,120 | |||||||
The aforementioned waivers and/or reimbursements are not subject to recoupment by the Investment Manager.
State Street serves as the Fund’s custodian and provides the Fund with certain administrative services.
The Fund has a distribution agreement with Lazard Asset Management Securities LLC (the “Distributor”), a wholly-owned subsidiary of the Investment Manager, to serve as the distributor for shares of each Portfolio. The Distributor bears, amongst other expenses, the cost of preparing and distributing materials used by the Distributor in connection with its offering Portfolio shares and other advertising and promotional expenses.
Under a distribution and servicing plan adopted pursuant to Rule 12b-1 under the 1940 Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net
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assets of its Open Shares, for certain distribution activities and providing services to holders of the Portfolio’s Open Shares. The Distributor may make payments to third parties such as financial institutions, securities dealers and other industry professionals in respect of these services.
SS&C GIDS is the Fund’s transfer agent and dividend disbursing agent.
4. Directors’ Compensation
Certain Directors of the Fund are officers of the Investment Manager. The annual compensation in 2023 for each Director who is not an affiliated person of the Investment Manager or any of its affiliates that is payable by all of the funds in the Lazard Fund Complex, is comprised of: (1) an annual fee of $245,000, (2) an additional annual fee of $35,000 to the lead Independent Director, and (3) an additional annual fee of $25,000 to the Audit Committee Chair. The Independent Directors (an “Independent Director” is a Director who is not an “interested person” (as defined in the 1940 Act) of the Fund) also may be paid additional fees for participation on ad hoc committees or other work performed on behalf of the Board. Effective January 1, 2024, the annual compensation for each Director who is not an affiliated person of the Investment Manager or any of its affiliates that is payable by all of the funds in the Lazard Fund Complex, is comprised of: (1) an annual fee of $252,500, (2) an additional annual fee of $35,000 to the lead Independent Director, and (3) an additional annual fee of $25,000 to the Audit Committee Chair. The Independent Directors are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings or incurred in connection with work performed on behalf of the Board. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement. Independent Directors’ fees and expenses are allocated among the active portfolios in the Lazard Fund Complex at a rate of $5,000 per active portfolio with the remainder allocated among the active portfolios on the basis of relative net assets. The Statements of Operations shows the Independent Directors’ compensation and expenses paid by each Portfolio.
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5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments and short sales) for the year ended December 31, 2023 were as follows:
| Portfolio | Purchases | Sales | ||||||
| Enhanced Opportunities | $ | 102,006,751 | $ | 125,088,717 | ||||
| Global Dynamic Multi-Asset | 9,700,168 | 12,818,340 | ||||||
| Opportunistic Strategies | 46,962,459 | 63,614,224 | ||||||
| Real Assets | 12,469,007 | 20,569,857 | ||||||
| US Treasury Securities | ||||||||
| Portfolio | Purchases | Sales | ||||||
| Enhanced Opportunities | $ 530,600 | $3,002,550 | ||||||
| Global Dynamic Multi-Asset | 317,643 | 379,359 | ||||||
| Real Assets | 2,785,554 | 2,785,795 | ||||||
At December 31, 2023, the Investment Manager owned 35.46% of the outstanding shares of the Global Dynamic Multi-Asset Portfolio.
For the year ended December 31, 2023, the Portfolios did not engage in any cross-trades in accordance with Rule 17a-7 under the 1940 Act, and no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.
6. Line of Credit
The Fund has a $100 million committed line of credit pursuant to an Amended and Restated Loan Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at 1.00% plus the “Applicable Rate,” which is the higher of (a) the Federal Funds Rate plus 10 basis points and (b) the Overnight Bank Funding Rate (OBFR) plus 10 basis points, on an annualized basis. Under the Agreement, the Fund has agreed to pay a 0.20% per annum fee on the unused portion of the commitment, payable quarterly in arrears. The Fund has also agreed to pay an upfront fee of 0.05% of the committed line
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amount. During the year ended December 31, 2023, the following Portfolios had borrowings under the Agreement as follows:
| Portfolio | Average Daily Loan Balance* | Maximum Daily Loan Outstanding | Weighted Average Interest Rate | Number of Days Borrowings were Outstanding | ||||||||||||
| Enhanced Opportunities | $ | 377,077 | $480,226 | 5.72 | % | 5 | ||||||||||
| Global Dynamic Multi-Asset | 72,195 | 206,462 | 6.29 | 10 | ||||||||||||
| Opportunistic Strategies | 158,491 | 158,491 | 6.43 | 4 | ||||||||||||
| * | For days borrowings were outstanding. |
Management believes that the fair value of the liabilities under the Agreement is equivalent to the recorded amount based on its short-term maturity and interest rate, which fluctuates with the Applicable rate. A Portfolio’s outstanding balance under the Agreement, if any, would be categorized as Level 2.
7. Investment Risks
Not all risks described below apply to all Portfolios, or may not apply to the same degree for one or more Portfolios compared to one or more other Portfolios. In addition, not all risks applicable to an investment in a Portfolio are described below. Please see the current summary prospectus for the relevant Portfolio(s) or a current Portfolio prospectus for further information regarding a Portfolio’s investment strategy and related risks.
(a) Market Risk—A Portfolio may incur losses due to declines in one or more markets in which it invests. These declines may be the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s). To the extent that such developments impact specific industries, market sectors, countries or geographic regions, a Portfolio’s investments in such industries, market sectors, countries and/or geographic regions can be expected to be particularly affected, especially if such investments are a significant portion of its investment portfolio. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect a Portfolio. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely
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impact issuers worldwide. As a result, local, regional or global events such as war or military conflict, acts of terrorism, the spread of infectious illness or other public health issues, social unrest, supply chain disruptions, market manipulations, government defaults, government shutdowns, the imposition of sanctions and other similar measures, recessions or other events could have a significant negative impact on global economic and market conditions. Additionally, general market conditions may impact the value of a Portfolio’s securities, including changes in interest rates, currency rates or monetary policies. It is not known how long the effects of such impacts, or any future impacts of other significant events described above, will or would last, but there could be a prolonged period of global economic slowdown, which may be expected to impact a Portfolio and its investments.
(b) Convertible Securities Risk—The market value of convertible securities may perform like that of non-convertible fixed income securities; that is, their prices move inversely with changes in interest rates (i.e., as interest rates go up, prices go down). In addition, convertible securities are subject to the risk that the issuer will not make interest or principal payments, or will not make payments on a timely basis. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security also is subject to the same types of market and issuer risks that apply to the underlying common stock.
(c) Fixed-Income and Debt Securities Risk—The market value of a debt security may decline due to general market conditions that are not specifically related to a particular company, such as real or perceived adverse economic conditions, changes in the outlook for corporate earnings, changes in interest or currency rates or adverse investor sentiment generally. The debt securities market can be susceptible to increases in volatility and decreases in liquidity. Liquidity can decline unpredictably in response to overall economic conditions or credit tightening.
Prices of bonds and other debt securities tend to move inversely with changes in interest rates. Interest rate risk is usually greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity and increased
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redemptions, and, as a result, a Portfolio may have to liquidate portfolio securities at disadvantageous prices. A Portfolio may be subject to heightened interest rate risk because the Federal Reserve has raised, and may continue to raise, interest rates.
A Portfolio’s investments in lower-rated, higher-yielding securities (“junk bonds”) are subject to greater credit risk than its higher rated investments. Credit risk is the risk that the issuer will not make interest or principal payments, or will not make payments on a timely basis. Non-investment grade securities tend to be more volatile, less liquid and are considered speculative. If there is a decline, or perceived decline, in the credit quality of a debt security (or any guarantor of payment on such security), the security’s value could fall, potentially lowering a Portfolio’s share price. The prices of non-investment grade securities, unlike investment grade debt securities, may fluctuate unpredictably and not necessarily inversely with changes in interest rates. The market for these securities may be less liquid and therefore these securities may be harder to value or sell at an acceptable price, especially during times of market volatility or decline.
Some debt securities may give the issuer the option to call, or redeem, the securities before their maturity, and, during a time of declining interest rates, a Portfolio may have to reinvest the proceeds of called or redeemed securities in an investment offering a lower yield (and the Portfolio may not fully benefit from any increase in the value of its portfolio holdings as a result of declining interest rates).
Structured notes are privately negotiated debt instruments where the principal and/or interest is determined by reference to a specified asset, market or rate, or the differential performance of two assets or markets. Structured notes can have risks of both debt securities and derivatives transactions.
Adjustable rate securities provide a Portfolio with a certain degree of protection against rises in interest rates, although adjustable rate securities will participate in any declines in interest rates. Certain adjustable rate securities, such as those with interest rates that fluctuate directly or indirectly based on multiples of a stated index,
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are designed to be highly sensitive to changes in interest rates and can subject the holders thereof to extreme reductions of yield and possibly loss of principal. Certain fixed-income securities may be issued at a discount from their face value (such as zero coupon securities) or purchased at a price less than their stated face amount or at a price less than their issue price plus the portion of “original issue discount” previously accrued thereon, i.e., purchased at a “market discount.” The amount of original issue discount and/or market discount on certain obligations may be significant, and accretion of market discount together with original issue discount will cause a Portfolio to realize income prior to the receipt of cash payments with respect to these securities.
(d) Preferred Securities Risk—There are various risks associated with investing in preferred securities. In addition, unlike common stock, participation in the growth of an issuer may be limited.
| • | Credit risk is the risk that a security held by a Portfolio will decline in price or the issuer of the security will fail to make dividend, interest or principal payments when due because the issuer experiences a decline in its financial status. |
| • | Interest rate risk is the risk that securities will decline in value because of changes in market interest rates. When market interest rates rise, the market value of such securities generally will fall. |
| • | Preferred securities may include provisions that permit the issuer, at its discretion, to defer or omit distributions for a stated period without any adverse consequences to the issuer. |
| • | Preferred securities are generally subordinated to bonds and other debt instruments in an issuer’s capital structure in terms of having priority to corporate income, claims to corporate assets and liquidation payments, and therefore will be subject to greater credit risk than more senior debt instruments. |
| • | During periods of declining interest rates, an issuer may be able to exercise an option to call, or redeem its issue at par earlier than the scheduled maturity. If this occurs during a time |
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| of lower or declining interest rates, a Portfolio may have to reinvest the proceeds in lower yielding securities (and the Portfolio may not benefit from any increase in the value of its portfolio holdings as a result of declining interest rates). | |
| • | Certain preferred securities may be substantially less liquid than many other securities, such as common stocks or US government securities. Illiquid securities involve the risk that the securities will not be able to be sold at the time desired by a Portfolio or at prices approximating the value at which the Portfolio is carrying the securities on its books. |
(e) Non-US Securities Risk—A Portfolio’s performance will be influenced by political, social and economic factors affecting the non-US countries and companies in which the Portfolio invests. Non-US securities carry special risks, such as less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity. Non-US securities may be subject to economic sanctions or other similar governmental actions or developments, which could, among other things, effectively restrict or eliminate the Portfolio’s ability to purchase or sell certain foreign securities. To the extent the Portfolio holds securities subject to such actions, the securities may become difficult to value and/or less liquid (or illiquid). In some cases, the securities may become worthless. 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.
(f) Emerging Market Risk—Emerging market countries generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries. The economies of countries with emerging markets may be based predominantly on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme debt burdens or volatile inflation rates. The securities markets of emerging market countries have historically been extremely volatile and less liquid than more developed markets. These market conditions may continue or worsen.
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Investments in these countries may be subject to political, economic, legal, market and currency risks. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.
(g) Foreign Currency Risk—Investments denominated in currencies other than US dollars may experience a decline in value, in US dollar terms, due solely to fluctuations in currency exchange rates. A Portfolio’s investments denominated in such currencies (particularly currencies of emerging markets countries) as well as any investments in currencies themselves could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of currencies. Irrespective of any foreign currency exposure hedging, a Portfolio may experience a decline in the value of its portfolio securities, in US dollar terms, due solely to fluctuations in currency exchange rates.
(h) Short Position Risk—Short positions may involve substantial risks. If a short position appreciates in value during the period of a Portfolio’s investment, there will be a loss to the Portfolio that could be substantial. Short positions involve more risk than long positions because the maximum sustainable loss on a security purchased is limited to the amount paid for the security plus the transaction costs. However, a Portfolio’s potential loss on a short position is unlimited because, theoretically, there is no limit to the potential price increase of a security. In addition, a Portfolio’s short sales transactions are dependent on counterparties to its securities borrowing transactions and are subject to the risk of default by a counterparty, which could result in a loss of Portfolio assets used as collateral or the loss of monies owed to the Portfolio by a counterparty.
(i) Derivatives and Hedging Risk—Derivatives and other similar transactions, including those entered into for hedging purposes (i.e., seeking to protect Portfolio investments), may increase volatility, reduce returns, limit gains or magnify losses, perhaps substantially, particularly since most derivatives have a leverage component that provides investment exposure in excess of the
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amount invested. Swap agreements; forward currency contracts; over-the-counter options on securities (including options on shares of ETFs), indices and currencies; and other over-the-counter derivatives transactions are subject to the risks of the creditworthiness of, and default by, the counterparty and consequently may lose all or a portion of their value due solely to the creditworthiness of, or default by, the counterparty. Over-the-counter derivatives frequently may be illiquid and difficult to value. Changes in liquidity may result in significant, rapid and unpredictable changes in the prices for derivatives. These derivatives transactions, as well as the exchange-traded futures and options in which a Portfolio may invest, are subject to many of the risks of, and can be highly sensitive to changes in the value of the related reference asset, index or rate. As such, a small investment could have a potentially large impact on a Portfolio’s performance. In fact, many derivatives may be subject to greater risks than those associated with investing directly in the underlying or other reference asset. Derivatives transactions incur costs, either explicitly or implicitly, which reduce returns, and costs of engaging in such transactions may outweigh any gains or any losses averted from hedging activities. Successful use of derivatives, whether for hedging or for other investment purposes, is subject to the Investment Manager’s ability to predict correctly movements in the direction of the relevant reference asset or market and, for hedging activities, correlation of the derivative instruments used with the investments seeking to be hedged. Use of derivatives transactions, even if entered into for hedging purposes, may cause a Portfolio to experience losses greater than if the Portfolio had not engaged in such transactions. When the Portfolio enters into derivatives transactions, it may be required to post margin and make settlement payments while the positions are open, and the Portfolio may have to sell a security at a disadvantageous time or price to meet such obligations. Derivatives transactions are also subject to operational and legal risk.
(j) Natural Resources Risk—Investments related to natural resources may be affected by numerous factors, including events occurring in nature, inflationary pressures and domestic and international politics. For example, events occurring in nature
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(such as earthquakes or fires in prime natural resource areas) and political events (such as coups or military confrontations) can affect the overall supply of a natural resource and the value of companies involved in such natural resource. Political risks and other risks to which non-US companies are subject also may affect US companies if they have significant operations or investments in non-US countries. In addition, interest rates, prices of raw materials and other commodities, international economic developments, energy conservation, tax and other government regulations (both US and non-US) may affect the supply of and demand for natural resources, which can affect the profitability and value of securities issued by companies in the natural resources category. Securities of companies within specific natural resources sub-categories can perform differently than the overall market. This may be due to changes in such things as the regulatory or competitive environment or to changes in investor perceptions.
(k) Real Estate Investments Risk—A Portfolio’s investments in Real Estate Investments (as defined in the prospectus) could lose money due to the performance of real estate-related securities even if securities markets generally are experiencing positive results. The performance of Real Estate Investments may be determined to a great extent by the current status of the real estate industry in general, or by other factors that may affect the real estate industry, even if other industries would not be so affected. Consequently, Real Estate Investments could lead to investment results that may be significantly different from investments in other real assets categories or investments in the broader securities markets. The risks related to investments in Real Estate Investments include, but are not limited to: adverse changes in general economic and local market conditions; adverse developments in employment; changes in supply or demand for similar or competing properties; unfavorable changes in applicable taxes, governmental regulations and interest rates; operating or development expenses; and lack of available financing.
Due to certain special considerations that apply to REITs, investments in REITs may carry additional risks not necessarily present in investments in other securities. REIT securities
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(including those trading on national exchanges) typically have trading volumes that are less than those of securities of other types of companies which may affect a Portfolio’s ability to trade or liquidate those securities. An investment in a REIT may be adversely affected if the REIT fails to comply with applicable laws and regulations, including failing to qualify as a REIT under the Code. Failure to qualify with any of these requirements could jeopardize a company’s status as a REIT. A Portfolio generally will have no control over the operations and policies of a REIT, including qualification as a REIT.
(l) Infrastructure Companies Risk—Securities and instruments of infrastructure companies, which consist of utilities, pipelines, toll roads, airports, railroads, ports, telecommunications and other infrastructure companies, are more susceptible to adverse economic or regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, increased competition from other providers of services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Infrastructure companies also may be affected by or subject to, among other factors, regulation by various government authorities, including rate regulation and service interruption due to environmental, operational or other mishaps.
(m) Commodities-Related Investments Risk—Exposure to the commodities markets may subject a Portfolio to greater volatility than other types of investments. The values of commodities and commodity-linked derivative instruments are affected by events that may have less impact on the values of equity and fixed income securities. Investments linked to the prices of commodities are considered speculative. Because the value of a commodity-linked derivative instrument, such as a futures contract on a physical commodity, typically is based upon the price movements of the underlying reference asset,
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index or rate, the value of these instruments will rise or fall in response to changes in the underlying reference asset, index or rate. Prices of commodities and commodity-linked investments may fluctuate significantly over short periods for a variety of factors, including: changes in supply and demand relationships; weather; agricultural or livestock markets; agricultural or livestock disease or pestilence; trade relationships; fiscal, monetary and exchange control programs; and embargoes, tariffs, terrorism and international economic, political, military and regulatory developments.
(n) Subsidiary and Tax Status Risk—The Real Assets Portfolio invests in the Subsidiary, which is not registered as an investment company under the 1940 Act. A regulatory change in the US or the Cayman Islands, under which the Portfolio and the Subsidiary, respectively, are organized, that impacts the Subsidiary or how the Portfolio invests in the Subsidiary, such as a change in tax law, could adversely affect the Portfolio. By investing in the Subsidiary, the Portfolio is exposed to the risks associated with the Subsidiary’s investments, which generally include the risks of investing in commodity-related derivative instruments.
Income and gains from commodities or certain commodity-linked derivative instruments do not constitute “qualifying income” to the Real Assets Portfolio for purposes of qualification as a “regulated investment company” for federal income tax purposes. Without such qualification, the Portfolio could fail to qualify as a RIC and be subject to tax. The tax treatment of the Portfolio’s investments in the Subsidiary and commodity-linked derivative instruments could affect whether income derived from such investment is “qualifying income” under the Code, or otherwise affect the character, timing and/or amount of the Portfolio’s taxable income or any gains and distributions made by the Portfolio.
(o) Closed-End Funds and ETFs Risk—Shares of closed-end funds and ETFs in which a Portfolio may invest may trade at prices that vary from their net asset values, sometimes significantly. The shares of closed-end funds and ETFs may trade at prices at, below or above their net asset value. Shares of closed-end funds, in particular, frequently trade at persistent discounts to their net
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asset value. In addition, the performance of an ETF pursuing a passive index-based strategy may diverge from the performance of the index. A Portfolio’s investments in closed-end funds and ETFs are subject to the risks of the closed-end funds’ and ETFs’ investments, as well as to the general risks of investing in closed-end funds and ETFs, respectively. A Portfolio investing in closed-end funds or ETFs will bear not only the Portfolio’s management fees and operating expenses, but also the Portfolio’s proportional share of the management fees and operating expenses of the closed-end funds and/or ETFs in which the Portfolio invests. Although Section 12 of the 1940 Act limits the amount of a Portfolio’s assets that may be invested in one or more closed-end funds and/or ETFs, Rule 12d1-4 under the 1940 Act allows a Portfolio to acquire the securities of another investment company, including ETFs, in excess of the limitations imposed by Section 12 of the 1940 Act, subject to certain limitations and conditions.
(p) Government Securities Risk—Not all obligations of the US government, its agencies and instrumentalities are backed by the full faith and credit of the US Treasury. Some obligations are backed only by the credit of the issuing agency or instrumentality, and in some cases there may be some risk of default by the issuer. Any guarantee by the US government or its agencies or instrumentalities of a security held by a Portfolio does not apply to the market value of such security or to shares of the Portfolio itself. A security backed by the US Treasury or the full faith and credit of the United States is guaranteed only as to the timely payment of interest and principal when held to maturity.
(q) Cybersecurity Risk—The Portfolios and their service providers are susceptible to operational and information security and related risks of cybersecurity incidents. Cybersecurity attacks include, but are not limited to, gaining unauthorized access to digital systems (e.g., through “hacking” or malicious software coding) for purposes of misappropriating assets or sensitive information, corrupting data or causing operational disruption. Cybersecurity incidents affecting the Investment Manager, transfer agent or custodian or other service providers such as financial intermediaries have the ability to cause disruptions and impact
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business operations, potentially resulting in financial losses, including by impediments to a Portfolio’s investment trading; the inability of Portfolio shareholders to purchase and redeem Portfolio shares; interference with a Portfolio’s ability to calculate its NAV; violations of applicable privacy, data security or other laws; regulatory fines and penalties; reputational damage; reimbursement or other compensation or remediation costs; legal fees; or additional compliance costs. Similar adverse consequences could result from cybersecurity incidents affecting issuers of securities in which a Portfolio invests; counterparties with which a Portfolio engages in transactions; governmental and other regulatory authorities, exchange and other financial market operators; and banks, brokers, dealers, insurance companies and other financial institutions and other parties. There are inherent limitations in any cybersecurity risk management systems or business continuity plans, including the possibility that certain risks have not been identified.
(r) Non-Diversification Risk—For a Portfolio that is classified as “non-diversified” under the 1940 Act, the Portfolio’s net asset value may be more vulnerable to changes in the market value of a single issuer or group of issuers and may be relatively more susceptible to adverse effects from any single corporate, industry, economic, market, political or regulatory occurrence than if the Portfolio’s investments consisted of securities issued by a larger number of issuers.
8. Contractual Obligations
The Fund enters into contracts in the normal course of business that contain a variety of indemnification provisions. A Portfolio’s maximum exposure under these arrangements is unknown. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.
9. Fair Value Measurements
Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework for measuring fair
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value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The fair value measurement level within the fair value hierarchy for the assets and liabilities of a Portfolio is based on the lowest level of any input that is significant to the overall fair value measurement. The three-level hierarchy of inputs is summarized below:
| • | Level 1 – unadjusted quoted prices in active markets for identical assets and liabilities |
| • | Level 2 – other significant observable inputs (including unadjusted quoted prices for similar assets and liabilities, interest rates, prepayment speeds, credit risk, etc.) |
| • | Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of assets and liabilities) |
Changes in valuation methodology or inputs may result in transfers into or out of the current assigned level within the hierarchy. The inputs or methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.
The following table summarizes the valuation of the Portfolios’ assets and liabilities by each fair value hierarchy level as of December 31, 2023:
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| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | ||||||||||||||||
| Enhanced Opportunities Portfolio | ||||||||||||||||||||
| Assets: | ||||||||||||||||||||
| Common Stocks* | ||||||||||||||||||||
| United States | $ | 134,688 | $ | — | $ | — | $ | 134,688 | ||||||||||||
| Convertible Corporate Bonds* | — | 37,254,748 | — | 37,254,748 | ||||||||||||||||
| Purchased Options | 39,841 | — | — | 39,841 | ||||||||||||||||
| Short-Term Investments | 1,860,324 | — | — | 1,860,324 | ||||||||||||||||
| U.S. Treasury Securities | — | 27,705,121 | — | 27,705,121 | ||||||||||||||||
| Other Financial Instruments† | ||||||||||||||||||||
| Total Return Swap Agreements | — | 3,068,607 | — | 3,068,607 | ||||||||||||||||
| Total | $ | 2,034,853 | $ | 68,028,476 | $ | — | $ | 70,063,329 | ||||||||||||
| Liabilities: | ||||||||||||||||||||
| Securities Sold Short | ||||||||||||||||||||
| Common Stocks* | ||||||||||||||||||||
| Canada | $ | (633,780 | ) | $ | — | $ | — | $ | (633,780 | ) | ||||||||||
| Hong Kong | — | (451,908 | ) | — | (451,908 | ) | ||||||||||||||
| Netherlands | — | (111,599 | ) | — | (111,599 | ) | ||||||||||||||
| Singapore | (38,921 | ) | — | — | (38,921 | ) | ||||||||||||||
| United States | (16,631,994 | ) | — | — | (16,631,994 | ) | ||||||||||||||
| Convertible Corporate Bonds* | — | (262,697 | ) | — | (262,697 | ) | ||||||||||||||
| Exchange-Traded Funds | (1,222,804 | ) | — | — | (1,222,804 | ) | ||||||||||||||
| U.S. Treasury Securities | — | (10,988,783 | ) | — | (10,988,783 | ) | ||||||||||||||
| Other Financial Instruments† | ||||||||||||||||||||
| Forward Currency Contracts | — | (9,438 | ) | — | (9,438 | ) | ||||||||||||||
| Total Return Swap Agreements | — | (2,762,578 | ) | — | (2,762,578 | ) | ||||||||||||||
| Written Options | (5,242 | ) | — | — | (5,242 | ) | ||||||||||||||
| Total | $ | (18,532,741 | ) | $ | (14,587,003 | ) | $ | — | $ | (33,119,744 | ) | |||||||||
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| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | ||||||||||||||||
| Global Dynamic Multi-Asset Portfolio | ||||||||||||||||||||
| Assets: | ||||||||||||||||||||
| Common Stocks* | ||||||||||||||||||||
| Australia | $ | 9,475 | $ | 106,222 | $ | — | $ | 115,697 | ||||||||||||
| Austria | — | 5,877 | — | 5,877 | ||||||||||||||||
| Bermuda | 3,920 | — | — | 3,920 | ||||||||||||||||
| Brazil | 6,286 | — | — | 6,286 | ||||||||||||||||
| Canada | 214,173 | 8,857 | — | 223,030 | ||||||||||||||||
| China | 18,145 | 7,837 | — | 25,982 | ||||||||||||||||
| Denmark | 10,911 | 81,300 | — | 92,211 | ||||||||||||||||
| Finland | 9,710 | 3,298 | — | 13,008 | ||||||||||||||||
| France | 53,204 | 95,353 | — | 148,557 | ||||||||||||||||
| Germany | 8,908 | 71,432 | — | 80,340 | ||||||||||||||||
| Hong Kong | 8,737 | 21,181 | — | 29,918 | ||||||||||||||||
| Israel | 4,291 | 8,715 | — | 13,006 | ||||||||||||||||
| Italy | — | 75,929 | — | 75,929 | ||||||||||||||||
| Japan | 19,454 | 456,074 | — | 475,528 | ||||||||||||||||
| Netherlands | 37,542 | 26,339 | — | 63,881 | ||||||||||||||||
| New Zealand | — | 8,756 | — | 8,756 | ||||||||||||||||
| Norway | — | 4,272 | — | 4,272 | ||||||||||||||||
| Singapore | — | 45,063 | — | 45,063 | ||||||||||||||||
| Spain | 12,696 | 21,287 | — | 33,983 | ||||||||||||||||
| Sweden | 43,565 | 10,848 | — | 54,413 | ||||||||||||||||
| Switzerland | 33,073 | 33,857 | — | 66,930 | ||||||||||||||||
| United Kingdom | 79,690 | 101,730 | — | 181,420 | ||||||||||||||||
| United States | 3,995,325 | 127,079 | — | 4,122,404 | ||||||||||||||||
| Corporate Bonds* | — | 1,532,674 | — | 1,532,674 | ||||||||||||||||
| Exchange-Traded Funds | 117,856 | — | — | 117,856 | ||||||||||||||||
| Foreign Government Obligations* | — | 1,961,265 | — | 1,961,265 | ||||||||||||||||
| Quasi Government Bonds* | — | 143,398 | — | 143,398 | ||||||||||||||||
| Supranational Bonds | — | 487,811 | — | 487,811 | ||||||||||||||||
| U.S. Treasury Securities | — | 288,290 | — | 288,290 | ||||||||||||||||
| Warrants* | — | — | — | — | ||||||||||||||||
| Other Financial Instruments† | ||||||||||||||||||||
| Forward Currency Contracts | — | 64,490 | — | 64,490 | ||||||||||||||||
| Total | $ | 4,686,961 | $ | 5,799,234 | $ | — | $ | 10,486,195 | ||||||||||||
| Liabilities: | ||||||||||||||||||||
| Other Financial Instruments† | ||||||||||||||||||||
| Forward Currency Contracts | $ | — | $ | (80,646 | ) | $ | — | $ | (80,646 | ) | ||||||||||
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| Description | Unadjusted Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Balance as of December 31, 2023 | ||||||||||||||||
| Opportunistic Strategies Portfolio | ||||||||||||||||||||
| Exchange-Traded Funds | $ | 35,837,727 | $ | 391,632 | $ | — | $ | 36,229,359 | ||||||||||||
| Short-Term Investments | 533,793 | — | — | 533,793 | ||||||||||||||||
| Total | $ | 36,371,520 | $ | 391,632 | $ | — | $ | 36,763,152 | ||||||||||||
| Real Assets Portfolio | ||||||||||||||||||||
| Assets: | ||||||||||||||||||||
| Common Stocks* | ||||||||||||||||||||
| Australia | $ | — | $ | 283,181 | $ | — | $ | 283,181 | ||||||||||||
| Brazil | — | 222,075 | — | 222,075 | ||||||||||||||||
| Canada | 723,551 | — | — | 723,551 | ||||||||||||||||
| China | — | 294,416 | — | 294,416 | ||||||||||||||||
| France | — | 559,352 | — | 559,352 | ||||||||||||||||
| Hong Kong | — | 301,415 | — | 301,415 | ||||||||||||||||
| Italy | — | 438,502 | — | 438,502 | ||||||||||||||||
| Japan | — | 820,243 | — | 820,243 | ||||||||||||||||
| Luxembourg | — | 11,175 | — | 11,175 | ||||||||||||||||
| Singapore | — | 70,814 | — | 70,814 | ||||||||||||||||
| South Africa | — | 120,644 | — | 120,644 | ||||||||||||||||
| Spain | 7,009 | 333,098 | — | 340,107 | ||||||||||||||||
| Switzerland | — | 14,206 | — | 14,206 | ||||||||||||||||
| Taiwan | — | 54,873 | — | 54,873 | ||||||||||||||||
| United Kingdom | — | 1,105,750 | — | 1,105,750 | ||||||||||||||||
| United States | 9,567,204 | 57,715 | — | 9,624,919 | ||||||||||||||||
| Corporate Bonds* | — | 3,061,137 | — | 3,061,137 | ||||||||||||||||
| Exchange-Traded Funds | 1,115,690 | — | — | 1,115,690 | ||||||||||||||||
| Short-Term Investments | 4,063,854 | — | — | 4,063,854 | ||||||||||||||||
| Other Financial Instruments† | ||||||||||||||||||||
| Forward Currency Contracts | — | 466 | — | 466 | ||||||||||||||||
| Total | $ | 15,477,308 | $ | 7,749,062 | $ | — | $ | 23,226,370 | ||||||||||||
| Liabilities: | ||||||||||||||||||||
| Other Financial Instruments† | ||||||||||||||||||||
| Forward Currency Contracts | $ | — | $ | (3,661 | ) | $ | — | $ | (3,661 | ) | ||||||||||
| Futures Contracts | (102,936 | ) | — | — | (102,936 | ) | ||||||||||||||
| Total Return Swap Agreements | — | (270,687 | ) | — | (270,687 | ) | ||||||||||||||
| Total | $ | (102,936 | ) | $ | (274,348 | ) | $ | — | $ | (377,284 | ) | |||||||||
| * | Please refer to Portfolios of Investments and Notes to Portfolios of Investments for portfolio holdings by country and industry. |
| † | Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation (depreciation). |
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Certain equity securities to which footnote (‡) in the Notes to Portfolios of Investments applies are included in Level 2 and were valued based on reference to similar securities that were trading on active markets.
An investment may be classified as a Level 3 investment if events (e.g., company announcements, market volatility, or natural disasters) occur that are expected to materially affect the value of this investment or if a price is not available through a pricing source in the Funds’ pricing matrix. In this case, the investment will be valued by the Valuation Sub-Committee of the Funds’ Valuation and Liquidity Committee, in accordance with procedures approved by the Board, reflecting its fair market value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Sub-Committee include, but are not limited to, valuation techniques such as using theoretical ex-rights price models, applying a change in price from a market proxy to a halted security, or determining the intrinsic value of securities.
When determining the price for Fair Valued Investments, the Valuation Sub-Committee seeks to determine the price that each affected Portfolio might reasonably expect to receive or pay from the current sale or purchase of the Fair Valued Investment in an arm’s-length transaction. Any fair value determinations shall be based upon all available information and factors that the Valuation Sub-Committee deems relevant and consistent with the principles of fair value measurements.
10. Derivative Instruments
Certain Portfolios may use derivative instruments, including forward currency contracts, options contracts, futures contracts or swap agreements.
Forward currency contracts may be used for hedging purposes or to seek to increase returns.
A Portfolio may write or purchase a call or put option to seek to realize, through the receipt of premiums or changes in market value, a greater return than would be realized on the underlying securities alone, or to seek to protect the Portfolio from losses.
A Portfolio may enter into futures transactions to hedge against changes in interest rates, securities prices, and/or currency exchange rates, to increase total return, or to otherwise gain access or attain exposure to certain markets or other underliers.
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A Portfolio enters into swap agreements in an attempt to obtain a particular exposure when it is considered desirable to do so, possibly at a lower cost to such Portfolio than if it had invested directly in the asset that yielded the desired exposure.
During the year ended December 31, 2023, the approximate average monthly notional exposure for derivative instruments was as follows:
| Derivative Instruments | Enhanced Opportunities Portfolio | Global Dynamic Multi-Asset Portfolio | Opportunistic Strategic Portfolio | Real Assets Portfolio | ||||||||||||
| Forward currency contracts: | ||||||||||||||||
| Average amounts purchased | $ | 400,000 | * | $ | 3,500,000 | $ | — | $ | 100,000 | ** | ||||||
| Average amounts sold | 2,500,000 | 3,400,000 | — | 800,000 | ||||||||||||
| Futures contracts: | ||||||||||||||||
| Average notional value of contracts – long | — | — | — | 1,400,000 | ||||||||||||
| Total return swap agreements: | ||||||||||||||||
| Average notional value | 38,000,000 | — | 900,000 | ** | 6,200,000 | |||||||||||
| Options: | ||||||||||||||||
| Average value of purchased options | 100,000 | — | — | — | ||||||||||||
| * | Represents average monthly notional exposure for six months the derivative instrument was open during the period. |
| ** | Represents average monthly notional exposure for eleven months the derivative instrument was open during the period. |
The Enhanced Opportunities Portfolio also wrote options having an average monthly notional exposure of less than $50,000.
The following table summarizes the fair value of derivative instruments on the Statements of Assets and Liabilities as of December 31, 2023:
Enhanced Opportunities Portfolio
| Assets – Derivative Financial Instruments | Equity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Swap agreements | ||||||||||||
| Unrealized appreciation on swap agreements | $ | 3,068,607 | $ | — | $ | 3,068,607 | ||||||
| Purchased options | ||||||||||||
| Investment in securities, at fair value | 39,841 | — | 39,841 | |||||||||
| Total | $ | 3,108,448 | $ | — | $ | 3,108,448 | ||||||
138 Annual Report
| Liabilities – Derivative Financial Instruments | Equity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | ||||||||||||
| Unrealized depreciation on forward currency contracts | $ | — | $ | 9,438 | $ | 9,438 | ||||||
| Swap agreements | ||||||||||||
| Unrealized depreciation on swap agreements | 2,762,578 | — | 2,762,578 | |||||||||
| Written options | ||||||||||||
| Written options, at fair value | 5,242 | — | 5,242 | |||||||||
| Total | $ | 2,767,820 | $ | 9,438 | $ | 2,777,258 | ||||||
Global Dynamic Multi-Asset Portfolio
| Assets – Derivative Financial Instruments | Total | |||||
| Forward currency contracts | Unrealized appreciation on forward currency contracts | $ | 64,490 | |||
| Liabilities – Derivative Financial Instruments | Total | |||||
| Forward currency contracts | Unrealized depreciation on forward currency contracts | $ | 80,646 | |||
Real Assets Portfolio
| Assets – Derivative Financial Instruments | Total | |||||||||||
| Forward currency contracts Unrealized appreciation on forward currency contracts | $ | 466 | ||||||||||
| Liabilities – Derivative Financial Instruments | Commodity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | ||||||||||||
| Unrealized depreciation on forward currency contracts | $ | — | $ | 3,661 | $ | 3,661 | ||||||
| Swap agreements | ||||||||||||
| Unrealized depreciation on swap agreements | 270,687 | — | 270,687 | |||||||||
| Futures Contracts | ||||||||||||
| Unrealized depreciation (a) | 102,936 | — | 102,936 | |||||||||
| Total | $ | 373,623 | $ | 3,661 | $ | 377,284 | ||||||
| (a) | Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, is reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported and the net cumulative unrealized appreciation (depreciation) is included in distributable earnings (accumulated loss). |
Annual Report 139
The effect of derivative instruments on the Statements of Operations for the year ended December 31, 2023 was:
Enhanced Opportunities Portfolio
| Net Realized Gain (Loss) from: | Equity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | $ | — | $ | (26,177 | ) | $ | (26,177 | ) | ||||
| Purchased options* | 14,306 | — | 14,306 | |||||||||
| Swap agreements | 891,516 | — | 891,516 | |||||||||
| Written options | 108,157 | — | 108,157 | |||||||||
| Total | $ | 1,013,979 | $ | (26,177 | ) | $ | 987,802 | |||||
| * | Purchased options are included under net realized gain/loss on investments on Statement of Operations. |
| Net Change in Unrealized Appreciation (Depreciation) on: | Equity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | $ | — | $ | 6,882 | $ | 6,882 | ||||||
| Purchased options* | 8,073 | — | 8,073 | |||||||||
| Swap agreements | 723,414 | — | 723,414 | |||||||||
| Written options | 2,791 | — | 2,791 | |||||||||
| Total | $ | 734,278 | $ | 6,882 | $ | 741,160 | ||||||
| * | Purchased options are included under unrealized gain/loss on investments on Statement of Operations. |
Global Dynamic Multi-Asset Portfolio
| Net Realized Gain (Loss) from: | Total | |||
| Forward currency contracts | $ | 26,961 | ||
| Net Change in Unrealized Appreciation (Depreciation) on: | Total | |||
| Forward currency contracts | $ | (153,453 | ) | |
Opportunistic Strategies Portfolio
| Net Realized Gain (Loss) from: | Total | |||
| Swap Agreements | $ | 217,651 | ||
| Net Change in Unrealized Appreciation (Depreciation) on: | Total | |||
| Swap Agreements | $ | 150,608 |
140 Annual Report
Real Assets Portfolio
| Net Realized Gain (Loss) from: | Commodity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | $ | — | $ | (10,381 | ) | $ | (10,381 | ) | ||||
| Futures Contracts | (1,047,410 | ) | — | (1,047,410 | ) | |||||||
| Swap agreements | (380,756 | ) | — | (380,756 | ) | |||||||
| Total | $ | (1,428,166 | ) | $ | (10,381 | ) | $ | (1,438,547 | ) | |||
| Net Change in Unrealized Appreciation (Depreciation) on: | Commodity Contracts | Foreign Currency Exchange Contracts | Total | |||||||||
| Forward currency contracts | $ | — | $ | (5,998 | ) | $ | (5,998 | ) | ||||
| Futures Contracts | 287,144 | — | 287,144 | |||||||||
| Swap agreements | (352,208 | ) | — | (352,208 | ) | |||||||
| Total | $ | (65,064 | ) | $ | (5,998 | ) | $ | (71,062 | ) | |||
As of December 31, 2023, the Enhanced Opportunities, Global Dynamic Multi-Asset and Real Assets Portfolios held derivative instruments that are eligible for offset in their Statements of Assets and Liabilities and are subject to master netting arrangements. A master netting arrangement is an agreement between two counterparties who have multiple contracts with each other that provides for the net settlement of all contracts, as well as any cash collateral, through a single payment in the event of default on, or termination of, any one contract.
The required information for the affected Portfolios is presented in the below table, as of December 31, 2023:
Enhanced Opportunities Portfolio
| Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | ||||||||||||
| Total Return Swap Agreements | $ | 3,068,607 | $ | — | $ | 3,068,607 | |||||||||
Annual Report 141
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||||
| Bank of America N.A. | $ | 190,662 | $ | (190,662 | ) | $ | — | $ | — | |||||||||||
| BNP Paribas SA | 1,301,632 | (1,034,331 | ) | — | 267,301 | |||||||||||||||
| Nomura International Plc | 1,576,313 | (1,437,054 | ) | — | 139,259 | |||||||||||||||
| Total | $ | 3,068,607 | $ | (2,662,047 | ) | $ | — | $ | 406,560 | |||||||||||
| 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 | $ | 9,438 | $ | — | $ | 9,438 | |||||||||
| Total Return Swap Agreements | 2,762,578 | — | 2,762,578 | ||||||||||||
| Total | $ | 2,772,016 | $ | — | $ | 2,772,016 | |||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged (a) | Net Amounts of Derivative Liabilities | ||||||||||||||||
| Bank of America N.A. | $ | 291,193 | $ | (190,662 | ) | $ | (100,531 | ) | $ | — | ||||||||||
| BNP Paribas SA | 1,034,331 | (1,034,331 | ) | — | — | |||||||||||||||
| Nomura International Plc | 1,437,054 | (1,437,054 | ) | — | — | |||||||||||||||
| State Street Bank & Trust Co. | 9,438 | — | — | 9,438 | ||||||||||||||||
| Total | $ | 2,772,016 | $ | (2,662,047 | ) | $ | (100,531 | ) | $ | 9,438 | ||||||||||
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 | $ | 64,490 | $ | — | $ | 64,490 | |||||||||
142 Annual Report
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||||
| Citibank N.A. | $ | 18,645 | $ | (10,406 | ) | $ | — | $ | 8,239 | |||||||||||
| HSBC Bank USA N.A. | 37,593 | (37,593 | ) | — | — | |||||||||||||||
| JPMorgan Chase Bank N.A. | 7,898 | (7,898 | ) | — | — | |||||||||||||||
| State Street Bank & Trust Co. | 354 | (354 | ) | — | — | |||||||||||||||
| Total | $ | 64,490 | $ | (56,251 | ) | $ | — | $ | 8,239 | |||||||||||
| Description | Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | ||||||||||||
| Forward Currency Contracts | $ | 80,646 | $ | — | $ | 80,646 | |||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged | Net Amounts of Derivative Liabilities | ||||||||||||||||
| Citibank N.A. | $ | 10,406 | $ | (10,406 | ) | $ | — | $ | — | |||||||||||
| HSBC Bank USA N.A. | 41,093 | (37,593 | ) | — | 3,500 | |||||||||||||||
| JPMorgan Chase Bank N.A. | 28,251 | (7,898 | ) | — | 20,353 | |||||||||||||||
| State Street Bank & Trust Co. | 896 | (354 | ) | — | 542 | |||||||||||||||
| Total | $ | 80,646 | $ | (56,251 | ) | $ | — | $ | 24,395 | |||||||||||
Real Assets Portfolio
| Description | Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Assets and Liabilities | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | ||||||||||||
| Forward Currency Contracts | $ | 466 | $ | — | $ | 466 | |||||||||
Annual Report 143
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Assets Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Received | Net Amounts of Derivative Assets | ||||||||||||||||
| HSBC Bank USA N.A. | $ | 35 | $ | (35 | ) | $ | — | $ | — | |||||||||||
| JPMorgan Chase Bank N.A. | 10 | (10 | ) | — | — | |||||||||||||||
| State Street Bank & Trust Co. | 421 | (421 | ) | — | — | |||||||||||||||
| Total | $ | 466 | $ | (466 | ) | $ | — | $ | — | |||||||||||
| 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 | $ | 3,661 | $ | — | $ | 3,661 | |||||||||
| Total Return Swap Agreements | 270,687 | 270,687 | |||||||||||||
| Total | $ | 274,348 | $ | — | $ | 274,348 | |||||||||
| Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
| Counterparty | Net Amounts of Liabilities Presented in the Statement of Assets and Liabilities | Financial Instruments | Collateral Pledged (a) | Net Amounts of Derivative Liabilities | ||||||||||||||||
| Goldman Sachs International | $ | 270,687 | $ | — | $ | (270,687 | ) | $ | — | |||||||||||
| HSBC Bank USA N.A. | 819 | (35 | ) | — | 784 | |||||||||||||||
| JPMorgan Chase Bank N.A. | 404 | (10 | ) | — | 394 | |||||||||||||||
| State Street Bank & Trust Co. | 2,438 | (421 | ) | — | 2,017 | |||||||||||||||
| Total | $ | 274,348 | $ | (466 | ) | $ | (270,687 | ) | $ | 3,195 | ||||||||||
| (a) | Collateral amounts disclosed in the table above may be adjusted due to the requirement to limit collateral amounts to avoid the effect of over-collateralization. Actual collateral received and/or pledged may be more than the amounts disclosed herein. |
11. Subsequent Events
Management has evaluated subsequent events potentially affecting the Portfolios through the issuance of the financial statements and has determined that there were no subsequent events that required adjustment or disclosure.
144 Annual Report
Report of Independent Registered Public Accounting Firm
To the Board of Directors of The Lazard Funds, Inc. and Shareholders of Lazard Enhanced Opportunities Portfolio, Lazard Global Dynamic Multi-Asset Portfolio, Lazard Opportunistic Strategies Portfolio, and Lazard Real Assets Portfolio:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Lazard Enhanced Opportunities Portfolio, Lazard Global Dynamic Multi-Asset Portfolio and Lazard Opportunistic Strategies Portfolio, three of the portfolios constituting The Lazard Funds, Inc., including the portfolios of investments, as of December 31, 2023, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. We have also audited the accompanying consolidated statement of assets and liabilities of Lazard Real Assets Portfolio (collectively, with the portfolios mentioned above, the “Portfolios”), one of the portfolios constituting The Lazard Funds, Inc., including the consolidated portfolio of investments, as of December 31, 2023, the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended, and the related notes (collectively referred to as “the financial statements and financial highlights”). In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Portfolios listed above as of December 31, 2023, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Portfolios’ management. Our responsibility is to express an opinion on the Portfolios’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States)
Annual Report 145
(PCAOB) and are required to be independent with respect to the Portfolios in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Portfolios are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Portfolios’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
New York, New York
February 26, 2024
We have served as the auditor of one or more of the investment companies in the Lazard Fund Complex since 2004.
146 Annual Report
The Lazard Funds, Inc.
Board of Directors and Officers Information (unaudited)
| Name (Year of Birth) Address(1) | Position(s) with the Fund (Since) and Term(2) | Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Independent Directors: | ||||
| Franci J. Blassberg (1953) | Director (August 2014) | Debevoise & Plimpton LLP, a law firm, Of Counsel (2013 – present) Cornell Law School, Adjunct Professor (2013 – present) The Buchmann Faculty of Law, Tel Aviv University, Visiting Professor (2019) New York University School of Law, Adjunct Professor (2022 – present) | ||
| Kenneth S. Davidson (1945) | Director (August 1995) | Davidson Capital Management Corporation, an investment manager, President (1978 – present) | ||
| Nancy A. Eckl (1962) | Director (April 2007) | College Retirement Equities Fund (eight accounts), Trustee (2007 – present) TIAA-CREF Funds (68 funds) and TIAA-CREF Life Funds (11 funds), Trustee (2007 – 2023) TIAA Separate Account VA-1, Member of the Management Committee (2007 – present) | ||
| Trevor W. Morrison (1971) | Director (April 2014) | New York University School of Law, Dean and Eric M. and Laurie B. Roth Professor of Law (2013 – present) | ||
| Richard Reiss, Jr. (1944) | Director (May 1991) | Georgica Advisors LLC, an investment manager, Chairman (1997 – present) Osprey Technology Acquisition Corp, a special purpose acquisition company, Director (2019 – present) |
Annual Report 147
| Name (Year of Birth) Address(1) | Position(s) with the Fund (Since) and Term(2) | Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2) | ||
| Robert M. Solmson (1947) | Director (September 2004) | Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, Co-Managing Partner and Managing Director (2008 – present) | ||
| Interested Directors(3): | ||||
| Nathan A. Paul (1973) | Director (October 2017), Chief Executive Officer and President (February 2017) | Vice Chair and Chief Operating Officer (February 2023-present) Investment Manager, Chief Business Officer (April 2017 – February 2023) and Managing Director (2003 – present) | ||
| Evan L. Russo (1974) | Director (July 2022) | Investment Manager, Chief Executive Officer (June 2022 – present) Lazard Ltd, Chief Financial Officer (October 2017 – October 2022) and Managing Director (2009 – 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, 2024, 32 active investment portfolios. Each Director serves an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation. |
| (3) | Messrs. Paul and Russo are “interested persons” (as defined in the 1940 Act) of the Fund because of their positions with the Investment Manager (“Interested Directors”). |
The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300, or online, at www.lazardassetmanagement.com.
148 Annual Report
| Name (Year of Birth) Address(1) | Position(s) with the Fund (Since) and Term(2) | Principal Occupation(s) During the Past Five Years | ||
| Officers(3): | ||||
| Mark R. Anderson (1970) | Vice President and Secretary (February 2017) | Managing Director (since February 2017) and General Counsel (since April 2017) of the Investment Manager (previously Chief Compliance Officer from September 2014 – April 2022) | ||
| Nargis Hilal (1984) | Chief Compliance Officer (July 2020) | Chief Compliance Officer (since April 2022) and Director of the Investment Manager (since January 2021, previously Senior Vice President) Chief Compliance Officer of KLS Diversified Asset Management LP (March 2016 – August 2017) | ||
| Christina Kennedy (1990) | Treasurer (April 2022) | Senior Vice President of the Investment Manager (since January 2023, previously Vice President) Senior Fund Accountant, Gates Capital Management Inc. (July 2016 – July 2019) | ||
| Shari L. Soloway (1981) | Assistant Secretary (November 2015) | Head of Legal, North America and Director of the Investment Manager (since January 2020, previously Senior Vice President) | ||
| Jessica A. Falzone (1989) | Assistant Secretary (January 2019) | Senior Vice President, Legal and Counsel of the Investment Manager (since January 2023, previously Vice President) | ||
| Cesar A. Trelles (1975) | Assistant Treasurer (December 2004) | Vice President of the Investment Manager (since February 2011) |
| (1) | The address of each officer of the Fund is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300. |
| (2) | Each officer serves for an indefinite term, until his or her successor is elected and qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other funds in the Lazard Fund Complex. |
| (3) | In addition to Nathan A. Paul, Chief Executive Officer and President (since February 2017, previously Vice President and Secretary), whose information is included in the Interested Directors section above. |
Annual Report 149
The Lazard Funds, Inc. Tax and Other Information (unaudited)
Tax Information
Year Ended December 31, 2023
The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2023:
Of the dividends paid by the Portfolios, the corresponding percentage shown below is qualified dividend income.
| Portfolio | Percentage | |||
| Enhanced Opportunities | 0.02 | % | ||
| Global Dynamic Multi-Asset | — | |||
| Opportunistic Strategies | 86.43 | |||
| Real Assets | 39.88 |
Of the dividends paid by the Portfolios, the corresponding percentage represents the amount of each dividend that qualifies for the dividends received deduction available to corporate shareholders.
| Portfolio | Percentage | |||
| Enhanced Opportunities | 0.02 | % | ||
| Global Dynamic Multi-Asset | — | |||
| Opportunistic Strategies | 28.29 | |||
| Real Assets | 8.65 |
Pursuant to Section 871 of the Code, the Portfolios have no designated qualified short-term gains for purposes of exempting withholding of tax on such distributions to US nonresident shareholders.
The Portfolios intend to pass through to shareholders foreign source income and foreign taxes paid, or up to the maximum amount allowable, as a foreign tax credit.
| Portfolio | Foreign Source Income | Foreign Tax Paid/Credit | ||||||
| Enhanced Opportunities | $ | — | $ | — | ||||
| Global Dynamic Multi-Asset | — | — | ||||||
| Opportunistic Strategies | 183,412 | 17,892 | ||||||
| Real Assets | — | — | ||||||
150 Annual Report
Of the dividends paid by the Portfolios, the corresponding amount represents the long-term capital gains paid to shareholders.
| Portfolio | Long-Term Capital Gains | |||
| Enhanced Opportunities | $ | — | ||
| Global Dynamic Multi-Asset | 161,340 | |||
| Opportunistic Strategies | 559,767 | |||
| Real Assets | — | |||
Proxy Voting
A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the Securities and Exchange Commission (the “SEC”) website at https://www.sec.gov. The Fund’s proxy voting record for the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SEC’s website at https://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.
Schedule of Portfolio Holdings
The Fund files the complete schedule of each Portfolio’s holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT reports are available on the SEC’s website at https://www.sec.gov.
Annual Report 151
The Lazard Funds, Inc.
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
www.lazardassetmanagement.com
Investment Manager
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Telephone: 800-823-6300
Distributor
Lazard Asset Management Securities LLC
30 Rockefeller Plaza
New York, New York 10112-6300
Custodian
State Street Bank and Trust Company
One Iron Street
Boston, Massachusetts 02210-1641
Transfer Agent and Dividend Disbursing Agent
SS&C Global Investor and Distribution Solutions, Inc.
2000 Crown Colony Drive
Quincy, Massachusetts 02169-0953
Telephone: 617-483-7000
Independent Registered Public Accounting Firm
Deloitte & Touche LLP
30 Rockefeller Plaza
New York, New York 10112-0015
Legal Counsel
Dechert LLP
1095 Avenue of the Americas
New York, New York 10036-6797
Lazard Asset Management LLC • 30 Rockefeller Plaza • New York, NY 10112 • www.lazardassetmanagement.com
Performance information as of the most recent month end is available online at www.lazardassetmanagement.com. LZDPS030 |  |
ITEM 2. CODE OF ETHICS.
The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions (the "CEO/CFO Code of Ethics"). The Registrant has posted its CEO/CFO Code of Ethics on its Internet website at https://www.lazardassetmanagement.com/codeofethics."
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Registrant’s Board of Directors (the “Board”) has determined that Robert M. Solmson and Nancy A. Eckl, members of the Audit Committee of the Board, are audit committee financial experts as defined by the Securities and Exchange Commission (the “SEC”). Mr. Solmson and Ms. Eckl are “independent” as defined by the SEC for purposes of audit committee financial expert determinations.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $954,028 in 2022 and $1,061,954 in 2023 (plus expenses in each case).
(b) Audit-Related Fees. There were no fees billed in the Reporting Periods by the Auditor to the Registrant for assurance and related services that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item 4.
The aggregate fees billed in the Reporting Periods for non-audit assurance and related services provided by the Auditor to Lazard Asset Management LLC, the Registrant’s investment manager (“Lazard”) and any entity controlling, controlled by or under common control with Lazard that provides ongoing services to the Registrant (“Service Affiliates”) that were reasonably related to the performance of the annual audit of the Service Affiliate which required pre-approval by the Audit Committee were $368,560 in 2022 and $368,560 in 2023.
(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 $312,936 in 2022 and $312,196 in 2023. These Tax Services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments; and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held. Additionally, the aggregate fees billed related to European Union tax reclaim filing services rendered by the Auditor were $179,161 in 2022 and $393,345 in 2023.
The aggregate fees billed in the Reporting Periods for Tax Services provided by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $0 in 2022 and $0 in 2023.
(d) All Other Fees. There were no fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) above.
There were no fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) above, which required pre-approval by the Audit Committee.
(e) Audit Committee Pre-Approval Policies and Procedures. The Registrant’s Audit Committee has established policies and procedures (the "Policy") for pre-approval of the Auditor's engagements for
services to the Registrant and Service Affiliates. The Policy states that the Registrant’s Audit Committee or the Chair of the Audit Committee (pursuant to delegated authority from the Audit Committee) pre-approves the Auditor’s engagements for audit and non-audit services to the Registrant and, as required, non-audit services to Service Affiliates on a case-by-case basis. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor’s independence. The Audit Committee Chair must report any pre-approval decisions he or she makes at the next scheduled Audit Committee meeting. There were no services provided by the Auditor to either the Registrant or Service Affiliates that were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X during the Reporting Periods.
(f) None.
(g) Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant and Service Affiliates for the Reporting Periods were $1,305,761 in 2022 and $1,309,430 in 2023.
(h) Auditor Independence. The Audit Committee considered whether provision of non-audit services to Service Affiliates that were not required to be pre-approved is compatible with maintaining the Auditor’s independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board during the period covered by this report.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to
be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.
(b) There were no changes to the Registrant’s internal control over financial reporting that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. EXHIBITS.
(a)(2) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
The Lazard Funds, Inc.
By /s/ Nathan A. Paul
Nathan A. Paul
Chief Executive Officer
Date: February 27, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By /s/ Nathan A. Paul
Nathan A. Paul
Chief Executive Officer
Date: February 27, 2024
By /s/ Christina Kennedy
Christina Kennedy
Treasurer
Date: February 27, 2024