Form 497K LAZARD FUNDS INC
Lazard Funds Summary Prospectus May 11, 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 International Strategic Equity Portfolio |
LISIX |
LISOX |
RLITX |
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 |
.75% |
.75% |
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.75% |
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Distribution and Service (12b-1) Fees |
None |
.25% |
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None |
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Other Expenses |
.07% |
.08% |
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.34% |
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Total Annual Portfolio Operating Expenses |
.82% |
1.08% |
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1.09% |
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Fee Waiver and Expense Reimbursement |
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.27% |
* |
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Total Annual Portfolio Operating Expenses After Fee Waiver and Expense Reimbursement |
.82% |
1.08% |
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.82% |
* |
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To the extent the Total Annual Portfolio Operating Expenses of the R6 Shares of the Portfolio exceed the Total Annual Portfolio Operating Expenses of the Portfolios Institutional Shares (in each case, not including management fees, custodial fees or other expenses related to the management of the Portfolios assets), Lazard Asset Management LLC (the "Investment Manager") has contractually agreed, until May 1, 2017, to bear the expenses of the R6 Shares in the amount of such excess. This agreement will terminate automatically in the event of termination of the 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 $10,000 in the Portfolio for the time periods indicated and then hold or redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Portfolios operating expenses remain the same, giving effect to the waiver and expense reimbursement arrangement in year one only. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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1 Year |
3 Years |
5 Years |
10 Years |
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Institutional Shares |
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$ |
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84 |
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$ |
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262 |
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$ |
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455 |
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$ |
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1,014 |
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Open Shares |
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$ |
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110 |
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$ |
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343 |
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$ |
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595 |
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$ |
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1,317 |
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R6 Shares |
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$ |
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84 |
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$ |
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320 |
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$ |
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575 |
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$ |
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1,305 |
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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 37% of the average value of its portfolio.
Principal Investment Strategies
The Portfolio invests primarily in equity securities, principally common stocks, of non-US companies whose principal activities are located in countries represented by the MSCI® Europe, Australasia and Far East (EAFE®) Index that the Investment Manager believes are undervalued based on their earnings, cash flow or asset values. The Portfolio also may invest up to 15% of its assets in securities of companies whose principal business activities are located in emerging market countries, although the allocation of the Portfolios assets to emerging market countries may vary from time to time.
Under normal circumstances, the Portfolio invests at least 80% of its assets in equity securities.
The countries represented by the MSCI EAFE Index currently include: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom.
Although the Portfolio is classified as diversified under the Investment Company Act of 1940, as amended, it may invest in a smaller number of issuers than other, more diversified investment portfolios.
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.
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.
Emerging Market Risk. 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. 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. These market conditions may continue or worsen. Significant devaluation of emerging market currencies against the US dollar may occur subsequent to acquisition of investments denominated in emerging market currencies.
2Summary Prospectus |
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 Portfolios investments could be adversely affected by delays in, or a refusal to grant, repatriation of funds or conversion of emerging market currencies. The Investment Manager does not intend to actively hedge the Portfolios foreign currency exposure.
Focused Investing Risk. The Portfolios 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 Portfolios investments consisted of securities issued by a larger number of issuers.
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.
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 International 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: |
Summary Prospectus3 |
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.
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Inception |
1 Year |
5 Years |
10 Years |
Life of |
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Institutional Shares: |
10/31/05 |
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Returns Before Taxes |
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-1.70% |
6.45% |
5.50% |
6.20% |
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Returns After Taxes on Distributions |
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-1.80% |
6.15% |
5.02% |
5.72% |
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Returns After Taxes on Distributions and |
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-0.58% |
5.17% |
4.58% |
5.17% |
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Open Shares (Returns Before Taxes) |
2/3/06 |
-1.89% |
6.17% |
N/A |
4.55% |
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R6 Shares (Returns Before Taxes) |
1/19/15 |
N/A |
N/A |
N/A |
-1.73% |
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MSCI EAFE Index |
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-0.81% |
3.60% |
3.03% |
3.69% |
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4Summary Prospectus |
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Management
Investment Manager
Lazard Asset Management LLC
Portfolio Managers/Analysts
Mark Little, portfolio manager/analyst on the Investment Managers International and Global Strategic Equity team, has been with the Portfolio since October 2005.
Michael A. Bennett, portfolio manager/analyst on various of the Investment Managers International Equity teams, has been with the Portfolio since September 2008.
Robin O. Jones, portfolio manager/analyst on the Investment Managers International and Global Strategic Equity teams, has been with the Portfolio since May 2009.
John R. Reinsberg, portfolio manager/analyst on the Investment Managers Global Equity and International Equity teams, has been with the Portfolio since October 2005.
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.
00073300
Lazard Asset Management LLC 30 Rockefeller Plaza New York, NY 10112 www.lazardnet.com
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