Under normal circumstances, the Portfolio
invests at least 80% of its assets in fixed-income securities of US issuers, including US government
securities, corporate securities, mortgage-related and asset-backed securities, municipal securities,
structured products, preferred stocks and inflation-indexed-securities. These securities may have any
type of interest rate payment terms, including fixed rate, adjustable rate or zero coupon features. Under
normal circumstances, the Portfolio’s investment portfolio can be expected to have an average effective
duration of three years or less. Duration is an estimate of the sensitivity of the price (the value of
principal) of a fixed-income security to a change in interest rates. Generally, the longer the duration,
the higher the expected volatility. For example, the market price of a fixed-income security with a duration
of three years would be expected to decline 3% if interest rates rose 1%. Conversely, the market price
of the same security would be expected to increase 3% if interest rates fell 1%. The Portfolio invests
primarily in securities that are rated investment grade by one or more nationally recognized statistical
rating organizations (or, if unrated, determined by the Investment Manager to be of comparable quality). Securities
are evaluated based on their fundamental and structural characteristics. Valuation analysis is tailored
to the specific asset class, but may include credit research and analysis of features such as prepayment
or call options, maturity, duration and coupon. The Portfolio may invest up to 20% of its
assets in other securities which need not be fixed-income securities of US issuers.
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Risk Table - Lazard US Short Duration Fixed Income 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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| 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. Adjustable rate securities provide the
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,
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 the Portfolio to realize income prior to the receipt of cash payments with respect to these
securities.
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| Mortgage-Related and Asset-Backed Securities Risk |
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 the Portfolio with a less effective security interest in the related collateral
than do mortgage-related securities.
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| Structured Products Risk |
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 the Portfolio’s performance.
Use of derivatives transactions may cause the Portfolio to experience losses greater than if the Portfolio
had not engaged in such transactions.
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| Preferred Securities Risk |
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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| 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 and an increase in taxable capital gains distributions to the Portfolio’s
shareholders, which will reduce returns to shareholders.
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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. In addition, investments denominated
in currencies other than US dollars may experience decline in value, in US dollar terms, due solely to
fluctuations in currency exchange rates. Emerging market countries
can generally have economic structures that are less diverse and mature, and political systems that are
less stable, than those of developed countries.
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| Government Securities Risk |
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 the 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.
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