Form 497K LAZARD FUNDS INC
Lazard Funds Summary Prospectus April 29, 2016
Before you invest, you may want to review the Portfolios Prospectus, which contains more information about the Portfolio and its risks. The Portfolios Prospectus and Statement of Additional Information (SAI), both dated April 29, 2016 (as revised or supplemented), are incorporated by reference into this Summary Prospectus. You can find the Portfolios Prospectus, SAI and other information about the Portfolio online at www.LazardNet.com/lam/us/lazardfunds.shtml. You can also get this information at no cost by calling (800) 823-6300 or by sending an e-mail request to [email protected].
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Institutional |
Open |
R6 |
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Lazard US Strategic Equity Portfolio |
LZUSX |
LZUOX |
RLUSX |
Investment Objective
The Portfolio seeks long-term capital appreciation.
Fees and Expenses
This table describes the fees and expenses that you may pay if you buy and hold shares of the Portfolio, a series of The Lazard Funds, Inc. (the Fund).
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Institutional |
Open |
R6 |
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Shareholder Fees (fees paid directly from your investment) |
1.00% |
1.00% |
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1.00% |
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Annual Portfolio Operating Expenses (expenses that you pay each year as a |
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Management Fees |
.70% |
.70% |
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.70% |
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Distribution and Service (12b-1) Fees |
None |
.25% |
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None |
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Other Expenses |
.20% |
.56% |
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.30% |
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Total Annual Portfolio Operating Expenses |
.90% |
1.51% |
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1.00% |
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Fee Waiver and Expense Reimbursement* |
.15% |
.46% |
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.25% |
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Total Annual Portfolio Operating Expenses After Fee Waiver and Expense Reimbursement* |
.75% |
1.05% |
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.75% |
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* |
Reflects a contractual agreement by Lazard Asset Management LLC (the Investment Manager) to waive its fee and, if necessary, reimburse the Portfolio until May 1, 2017, to the extent Total Annual Portfolio Operating Expenses exceed .75%, 1.05% and .75% of the average daily net assets of the Portfolios Institutional Shares, Open Shares and R6 Shares, respectively, exclusive of taxes, brokerage, interest on borrowings, fees and expenses of Acquired Funds and extraordinary expenses, and excluding shareholder redemption fees or other transaction fees. This agreement can only be amended by agreement of the Fund, upon approval by the Funds Board of Directors, and the Investment Manager to lower the net amount shown and will terminate automatically in the event of termination of the Investment Management Agreement between the Investment Manager and the Fund, on behalf of the Portfolio. |
Example
This Example is intended to help you compare the cost of investing in the Portfolio with the cost of investing in other mutual funds.
The Example assumes that you invest $10,000 in the Portfolio for the time periods indicated and then hold or redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Portfolios operating expenses remain the same, giving effect to the fee waiver and expense reimbursement arrangement in year one only.
Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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1 Year |
3 Years |
5 Years |
10 Years |
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Institutional Shares |
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$ |
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77 |
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$ |
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272 |
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$ |
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484 |
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$ |
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1,094 |
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Open Shares |
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$ |
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107 |
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$ |
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432 |
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$ |
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780 |
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$ |
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1,762 |
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R6 Shares |
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$ |
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77 |
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$ |
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294 |
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$ |
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528 |
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$ |
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1,202 |
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Portfolio Turnover
The Portfolio pays transaction costs, such as commissions, when it buys and sells securities (or turns over its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Portfolio shares are held in a taxable account. These costs, which are not reflected in annual portfolio operating expenses or in the Example, affect the Portfolios performance. During the most recent fiscal year, the Portfolios portfolio turnover rate was 75% of the average value of its portfolio.
Principal Investment Strategies
The Portfolio invests primarily in equity securities, principally common stocks, of US companies that the Investment Manager believes have strong and/or improving financial productivity and are undervalued based on their earnings, cash flow or asset values. Although the Portfolio generally focuses on large cap companies, the market capitalizations of issuers in which the Portfolio invests may vary with market conditions and the Portfolio also may invest in mid cap and small cap companies.
Under normal circumstances, the Portfolio invests at least 80% of its assets in equity securities of US companies. The Portfolio may invest up to 20% of its assets in securities of non-US companies.
Principal Investment Risks
The value of your investment in the Portfolio will fluctuate, which means you could lose money.
Market Risk. Market risks, including political, regulatory, market and economic developments, and developments that impact specific economic sectors, industries or segments of the market, can affect the value of the Portfolios investments. 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.
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 issuers 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 issuers value, such as investor perception.
Value Investing Risk. The Portfolio invests in stocks believed by the Investment Manager to be undervalued, but that may not realize their perceived value for extended periods of time or may never realize their perceived value. The stocks in which the Portfolio invests may respond differently to market and other developments than other types of stocks.
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.
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.
Non-US Securities Risk. The Portfolios 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. In addition, investments denominated in currencies
2Summary Prospectus |
other than US dollars may experience a 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.
Performance Bar Chart and Table
Year-by-Year Total Returns for Institutional Shares
As of 12/31
The accompanying bar chart and table provide some indication of the risks of investing in Lazard US Strategic Equity Portfolio by showing the Portfolios year-by-year performance and its average annual performance compared to that of a broad measure of market performance. The bar chart shows how the performance of the Portfolios Institutional Shares has varied from year to year over the past 10 calendar years. Updated performance information is available at www.LazardNet.com or by calling (800) 823-6300. The Portfolios past performance (before and after taxes) is not necessarily an indication of how the Portfolio will perform in the future.
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Best Quarter: |
Average Annual Total Returns
(for the periods ended December 31, 2015)
After-tax returns are shown only for Institutional Shares. After-tax returns of the Portfolios other share classes will vary. After-tax returns are calculated using the historical highest individual marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on the investors tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their shares through tax-deferred arrangements such as 401(k) plans or individual retirement accounts.
Summary Prospectus3 |
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Inception |
1 Year |
5 Years |
10 Years |
Life of |
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Institutional Shares: |
12/30/04 |
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Returns Before Taxes |
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-4.75% |
10.37% |
6.09% |
5.99% |
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Returns After Taxes on Distributions |
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-6.42% |
8.90% |
4.90% |
4.88% |
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Returns After Taxes on Distributions and |
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-1.35% |
8.21% |
4.81% |
4.74% |
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Open Shares (Returns Before Taxes) |
12/30/04 |
-5.11% |
10.04% |
5.77% |
5.68% |
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R6 Shares (Returns Before Taxes) |
5/19/14 |
-4.78% |
N/A |
N/A |
4.18% |
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S&P 500 Index |
1.38% |
12.57% |
7.31% |
7.07% |
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4Summary Prospectus |
Investment Manager
Lazard Asset Management LLC
Portfolio Managers/Analysts
Christopher H. Blake, portfolio manager/analyst on various of the Investment Managers US Equity teams, has been with the Portfolio since December 2004.
Martin Flood, portfolio manager/analyst on various of the Investment Managers US Equity teams and the Global Equity Select and Fundamental Long/Short teams, has been with the Portfolio since March 2011.
Andrew D. Lacey, portfolio manager/analyst on various of the Investment Managers US Equity and Global Equity teams, has been with the Portfolio since December 2004.
Ronald Temple, portfolio manager/analyst on various of the Investment Managers US Equity and Global Equity teams, has been with the Portfolio since February 2009.
Purchase and Sale of Portfolio Shares
The initial investment minimums are:
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Institutional Shares* |
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$ |
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100,000 |
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Open Shares* |
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$ |
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2,500 |
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R6 Shares** |
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$ |
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1,000,000 |
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Unless the investor is a client of a securities dealer or other institution which has made an aggregate minimum initial purchase for its clients of at least $100,000 for Institutional Shares or $2,500 for Open Shares. |
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** |
There is no minimum investment amount for R6 Shares purchased by certain types of employee benefit plans and individuals considered to be affiliates of the Fund or the Investment Manager, discretionary accounts with the Investment Manager and affiliated and non-affiliated registered investment companies. |
The subsequent investment minimum for Institutional Shares and Open Shares is $50.
Portfolio shares are redeemable through the Funds transfer agent, Boston Financial Data Services, Inc., on any business day by telephone, mail or overnight delivery. Clients of financial intermediaries may be subject to the intermediaries procedures.
Tax Information
All dividends and short-term capital gains distributions are generally taxable to you as ordinary income, and long-term capital gains are generally taxable as such, whether you receive the distribution in cash or reinvest it in additional shares.
Financial Intermediary Compensation (Open and Institutional Shares only)
Payments to Broker-Dealers and Other Financial Intermediaries
If you purchase shares of the Portfolio through a broker-dealer or other financial intermediary (such as a bank), the Portfolio and/or the Investment Manager and its affiliates may pay the intermediary for the sale of Portfolio shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Portfolio over another investment. Ask your salesperson or visit your financial intermediarys website for more information.
00073307
Lazard Asset Management LLC 30 Rockefeller Plaza New York, NY 10112 www.lazardnet.com
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