Lazard Equity Franchise Portfolio Institutional Shares (LZFIX)

Overview

The Portfolio presents an investment vehicle primarily focused on equity securities, encompassing a wide array of companies based in both the U.S. and internationally, including those operating within emerging markets. Its investment strategy revolves around selecting companies possessing what is termed an "economic franchise." Such companies are characterized by their historical capability to sustain unleveraged returns that either meet or exceed their cost of capital over extended periods. This attribute signifies a stable and potentially profitable investment target for the Portfolio. Despite its focus on equity securities, the Portfolio is flexible regarding the size of the companies it invests in and maintains a non-diversified status, allowing for concentrated investments in selected equities.

Products and Services

The Portfolio offers investment opportunities into various categories of equity securities, detailed as follows:

• Equity Securities: The core offering involves investing in equity securities, primarily common stocks, of both U.S. and non-U.S. companies. This includes entities from emerging markets, providing a rich diversity of investment options.
• Economic Franchise Investments: A significant part of the Portfolio's strategy includes investing in companies with an "economic franchise." These are entities that have demonstrated consistent ability to generate returns surpassing their cost of capital without leveraging, indicating a robust and sustainable business model.
• Investments in Various Company Sizes: There is no restriction on the size of the companies the Portfolio invests in. This approach allows for flexibility in investment choices, ranging from small startups to large multinational corporations.
• Non-diversified Portfolio: Despite its broad investment scope, the Portfolio operates as a non-diversified fund. This means it may concentrate its investments in fewer securities than a diversified fund, potentially subjecting it to more significant risks and rewards from the performance of selected companies.