The Portfolio invests primarily in equity
securities, principally common stocks, of non-US companies whose principal activities are located in
emerging market countries and that Lazard Asset Management LLC (the “Investment Manager”)
believes are undervalued based on their earnings, cash flow or asset values. Emerging market countries
include all countries represented by the MSCI Emerging Markets Index, which currently includes: Brazil,
Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Kuwait, Malaysia,
Mexico, Peru, Philippines, Poland, Qatar, Saudi Arabia, South Africa, Taiwan, Thailand, Turkey and United
Arab Emirates. Under normal circumstances, the Portfolio invests at least 80% of its assets in
equity securities of companies whose principal business activities are located in emerging market countries.
In addition to common stocks, such equity securities also may include American Depositary Receipts (“ADRs”),
Global Depositary Receipts and European Depositary Receipts. In addition, 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.
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Risk Table - Lazard Retirement Emerging Markets 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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| 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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| 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. Further,
investments in securities of issuers located in certain emerging countries involve the risk of loss resulting
from problems in share registration, settlement or custody, substantial economic, political and social
disruptions and the imposition of sanctions or exchange controls (including repatriation restrictions).
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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| Depositary Receipts Risk |
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.
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| Large Cap Companies Risk |
Large Cap Companies Risk: Investments in large cap companies may
underperform other segments of the market when such other segments are in favor or because such companies
may be less responsive to competitive challenges and opportunities and may be unable to attain high growth
rates during periods of economic expansion.
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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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| 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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| 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 China, and the Portfolio would be expected to be affected by political, regulatory,
market, economic and social developments affecting that country. There are special risks associated with
investments in China, including currency fluctuations, less liquidity, expropriation, confiscatory taxation,
nationalization, exchange control regulations (including currency blockage), trading halts, limitations
on repatriation and differing legal standards. Strained relations between the United States and China
have heightened concerns of increased tariffs and restrictions on trade between the two countries, such
as the potential for an escalation in trade tensions. An increase in tariffs or trade restrictions (and
threats thereof) could lead to a significant reduction in international trade, which could have a negative
impact on China’s export industry, Chinese issuers, the liquidity or price of the Portfolio’s
direct or indirect investments in China and, therefore, the Portfolio. The economy of China
differs, often unfavorably, from the US economy in such respects as structure, general development, government
involvement, wealth distribution, rate of inflation, growth rate, interest rates, allocation of resources
and capital reinvestment, among others. The Chinese central government has historically exercised substantial
control over virtually every sector of the Chinese economy through administrative regulation and/or
state ownership or other involvement and actions of the Chinese central and local government authorities
continue to have a substantial effect on economic conditions in China. In addition, the Chinese government
has from time to time actively intervened in Chinese companies’ operations and structures and taken
actions that influence the prices at which certain goods may be sold, encourage companies to invest or
concentrate in particular industries, induce mergers between companies in certain industries and induce
private companies to publicly offer their securities to increase or continue the rate of economic growth,
control the rate of inflation or otherwise regulate economic expansion. The Chinese government may do
so in the future as well, potentially having a significant adverse effect on economic conditions in China.
Moreover, strained relations, border disputes or other conflict between China and neighboring countries
could adversely affect the Chinese economy. The Portfolio 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 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 Securities and Exchange Commission,
the Public Company Accounting Oversight Board or other United States regulators. If any of these or similar
risks or developments materialize, the value of investments in VIEs could be adversely affected and the
Portfolios could incur significant losses with no recourse available. A decline or worsening in diplomatic
or other relations between the US and China could increase the risks associated with the VIE structure. The
Portfolio 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 the 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.
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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 financials sector, and the Portfolio would be expected to be affected by developments in that
sector. Companies in the financials sector can be significantly affected by, among other things: government
regulation; changes in interest
rates and/or monetary policy and general economic conditions; the availability and cost of capital; capital
requirements; decreased liquidity in credit markets; and the rate of defaults on corporate, consumer
and government debt.
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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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