The
Portfolio utilizes an asset allocation strategy to invest in a global portfolio of uncorrelated assets
that can include exposure, through underlying vehicles, to stocks, bonds, commodities and other investments. The
Portfolio invests primarily in exchange-traded open-end management investment companies (“ETFs”),
generally those that pursue a passive index-based strategy, as well as actively managed closed-end management
investment companies (“closed-end funds”, and, together with ETFs, “Underlying Funds”).
ETFs in which the Portfolio may invest include both ETFs designed to correlate directly with an index
and ETFs designed to correlate inversely with an index and may include actively-managed ETFs. The Portfolio,
through Underlying Funds in which it invests, may invest in non-US companies (including those in emerging
markets), and the Portfolio also may invest directly in equity and debt securities in addition to its
investments in Underlying Funds. The Portfolio’s investment portfolio is concentrated in a relatively
small number of holdings (generally 10 to 30). Investors can invest directly in Underlying
Funds and do not need to invest in Underlying Funds through mutual funds or separately managed accounts. The
Portfolio may, but is not required to (1) enter into equity, total return and currency swap agreements;
futures contracts and options on futures contracts (including with respect to index and commodities);
and forward currency contracts; and (2) write put and covered call options on securities (including shares
of ETFs), indexes and currencies, in each case for hedging purposes or to seek to increase returns, including
as a substitute for purchasing an Underlying Fund. The Portfolio may, but is not required to,
effect short sales of securities. A short sale involves the sale of a security that the Portfolio does
not own in the expectation of purchasing the same security (or a security exchangeable therefor) at a
later date and at a lower price and profiting from the price decline. Similarly, when taking short positions
with respect to securities through investments in derivative instruments, the Investment Manager is expecting
the value of such securities to fall during the period of the Portfolio’s investment exposure. Although
the Portfolio is classified as “diversified” under the Investment Company Act of 1940, as
amended (the “1940 Act”), it may invest in a smaller number of issuers than other, more diversified,
investment portfolios.
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Risk Table - Lazard Retirement Opportunistic Strategies Portfolio
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Risk [Text Block] |
| Risk Lose Money [Member] |
The value of your investment in the Portfolio
will fluctuate, which means you could lose money.
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| Market Risk |
Market Risk: The 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, the 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 the 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, 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. For example, a public health or other emergency
and aggressive responses taken by many governments or voluntarily imposed by private parties, including
closing borders, restricting travel and imposing prolonged quarantines or similar restrictions, as well
as the closure of, or operational changes to, many retail and other businesses, may have severe negative
impacts on markets worldwide. Additionally, general market conditions may affect the value of a Portfolio’s
securities, including changes in interest rates, currency rates or monetary policies.
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| Issuer Risk |
Issuer Risk:
The value of a security may decline for a number of reasons which directly relate to the issuer, such
as management performance, financial leverage and reduced demand for the issuer’s goods or services,
as well as the historical and prospective earnings of the issuer and the value of its assets or factors
unrelated to the issuer’s value, such as investor perception.
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| Underlying Funds Risk |
Underlying Funds
Risk: Shares of closed-end funds and ETFs may trade at prices at, below or above their
net asset value. Shares of closed-end funds, in particular, frequently trade at persistent discounts
to their net asset value. In addition, the performance of an ETF pursuing a passive index-based strategy
may diverge from the performance of the index. The Portfolio’s investments in Underlying Funds
are subject to the risks of the Underlying Funds’ investments, as well as to the general risks
of investing in Underlying Funds. The Portfolio 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 Underlying Funds in which the Portfolio invests. Rule 12d1-4 under the 1940
Act allows the Portfolio to acquire the securities of another investment company, including an Underlying
Fund, in excess of the limitations imposed by Section 12 of the 1940 Act, subject to certain limitations
and conditions.
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| Short Position Risk |
Short Position Risk: Short positions may involve substantial
risks. If a short position appreciates in value during the period of the 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, the 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, the 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.
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| Non-US Securities Risk |
Non-US Securities Risk: The 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.
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| Emerging Market Risk |
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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| Foreign Currency Risk |
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. The 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, the Portfolio may experience a
decline in the value of its portfolio securities, in US dollar terms, due solely to fluctuations in currency
exchange rates. The Investment Manager does not intend to actively hedge the Portfolio’s foreign
currency exposure.
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| Fixed-Income and Debt Securities Risk |
Fixed-Income and Debt Securities Risk: The market value of a debt security may
decline due to general market conditions that are not specifically related to a particular company, such
as real or perceived adverse economic conditions, changes in the outlook for corporate earnings, changes
in interest or currency rates or adverse investor sentiment generally. The debt securities market can
be susceptible to increases in volatility and decreases in liquidity. Liquidity can decline unpredictably
in response to overall economic conditions or credit tightening. Prices of bonds and
other debt securities tend to move inversely with changes in interest rates. Interest rate risk is usually
greater for fixed-income securities with longer maturities or durations. A rise in interest rates (or
the expectation of a rise in interest rates) may result in periods of volatility, decreased liquidity
and increased redemptions, and, as a result, the Portfolio may have to liquidate portfolio securities
at disadvantageous prices. The Portfolio may be subject to heightened interest rate risk because the
Federal Reserve has raised, and may continue to raise, interest rates. The Portfolio’s
investments in lower-rated, higher-yielding securities (“junk bonds”) are subject to greater
credit risk than its higher rated investments. Credit risk is the risk that the issuer will not make
interest or principal payments, or will not make payments on a timely basis. Non-investment grade securities
tend to be more volatile, less liquid and are considered speculative. If there is a decline, or perceived
decline, in the credit quality of a debt security (or any guarantor of payment on such security), the
security’s value could fall, potentially lowering the Portfolio’s share price. The prices
of non-investment grade securities, unlike investment grade debt securities, may fluctuate unpredictably
and not necessarily inversely with changes in interest rates. The market for these securities may be
less liquid and therefore these securities may be harder to value or sell at an acceptable price, especially
during times of market volatility or decline.
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| Focused Investing Risk |
Focused Investing Risk: 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.
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| Derivatives and Hedging Risk |
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; over-the-counter
options on securities (including options on shares of ETFs), indexes 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 the 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 the 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 the 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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| Commodities-Related Investments Risk |
Commodities-Related Investments Risk:
Exposure to the commodities markets may subject the Portfolio to greater volatility than other types
of investments. The values of commodities and commodity-linked derivative instruments are affected by
events that may have less impact on the values of equity and fixed income securities. Investments linked
to the prices of commodities are considered speculative. Because the value of a commodity-linked derivative
instrument, such as a futures contract on a physical commodity, typically is based upon the price movements
of the underlying reference asset, index or rate, the value of these instruments will rise or fall in
response to changes in the underlying reference asset, index or rate. Prices of commodities and commodity-linked
investments may fluctuate significantly over short periods for a variety of factors, including: changes
in supply and demand relationships; weather; agricultural or livestock markets; agricultural or livestock
disease or pestilence; trade relationships; fiscal, monetary and exchange control programs; and embargoes,
tariffs, terrorism and international economic, political, military and regulatory developments.
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| Securities Selection Risk |
Securities
Selection Risk: Securities and other investments selected by the Investment Manager for the Portfolio
may not perform to expectations. This could result in the Portfolio’s underperformance compared
to other funds with similar investment objectives or strategies.
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| High Portfolio Turnover Risk |
High Portfolio Turnover
Risk: The Portfolio’s investment strategy may involve high portfolio turnover
(such as 100% or more). A portfolio turnover rate of 100%, for example, is equivalent to the Portfolio
buying and selling all of its securities once during the course of the year. A high portfolio turnover
rate could result in high transaction costs.
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