The
Portfolio invests primarily in equity securities, principally common stocks, of relatively small, non-US
companies. Lazard Asset Management LLC (the “Investment Manager”), through its bottom-up,
fundamental research process, invests in companies it believes have strong and/or improving financial
productivity and are undervalued based on their earnings, cash flow or asset values. The Investment Manager
considers “small non-US companies” to be those non-US companies with market capitalizations,
at the time of initial purchase by the Portfolio,
within the range of companies included in the MSCI EAFE Small Cap Index (based on market capitalization
of the Index as a whole, which ranged from approximately $125.4 million to $26.0 billion as of March
31, 2025). Under normal circumstances, the Portfolio invests at least 80% of its assets in
equity securities of small cap companies.
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Risk Table - Lazard Retirement International Small Cap Equity Portfolio
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Risk [Text Block] |
| Principal Investment Risks |
Principal Investment Risks The value of your
investment in the Portfolio will fluctuate, which means you could lose money.
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| 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, natural disasters, extreme weather, other geological events, man-made disasters, supply
chain disruptions, deflation, inflation, government defaults, government shutdowns, the imposition of
sanctions or 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. Furthermore, the
imposition of tariffs, trade restrictions, currency restrictions or similar actions (or retaliatory measures
taken in response to such actions), or the threat or potential of one or more such events and developments,
could lead to price volatility and overall declines in the US and global investment markets.
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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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| Small and Mid Cap Companies Risk |
Small
and Mid Cap Companies Risk: Small and mid cap companies carry additional risks because
their earnings tend to be less predictable, their share prices more volatile and their securities less
liquid than larger, more established companies. The shares of small and mid cap companies tend to trade
less frequently than those of larger companies, which can have an adverse effect on the pricing of these
securities and on the ability to sell these securities when the Investment Manager deems it appropriate.
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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 governmental actions or developments,
exchange controls (including repatriation restrictions), confiscations, trade restrictions (including
tariffs) or problems related to share registration, trade settlement or asset custody, 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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| 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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| Value Investing Risk |
Value Investing Risk: Value investments are believed by the
Investment Manager to be undervalued, but may not realize their perceived value for extended periods
of time or may never realize their perceived value. These securities may respond differently to market
and other developments than other types of securities.
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| Sector Risk |
Sector Risk: Implementation
of the Portfolio’s investment strategy may, during certain periods, result in the investment of
a significant portion of the Portfolio’s assets in a particular market sector, such as companies
in the industrials sector, and the Portfolio would be expected to be affected by developments in that
sector. Companies in the industrials sector can be significantly affected by, among other things: supply
and demand for products and services, product obsolescence, government regulation, changes in commodity
prices, claims for environmental damage and product liability and imposition of import controls.
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| Country Risk |
Country
Risk: Implementation of the Portfolio’s investment strategy may, during certain
periods, result in the investment of a significant portion of the Portfolio’s assets in a particular
country, such as Japan, and the Portfolio would be expected to be affected by political, regulatory,
market, economic and social developments affecting that country. 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. In addition, Japan is subject to the risk of
natural disasters, such as earthquakes, volcanic eruptions, typhoons and tsunamis, which could negatively
affect the Portfolio. 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.
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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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