Lazard US Systematic Small Cap Equity Portfolio R6 Shares (RUSRX)

Overview

The Portfolio described appears to be a financial investment vehicle that focuses on the equity markets within the United States, specifically targeting the segment of small capitalization (small cap) companies. It is structured to allocate a significant portion, at least 80%, of its resources to equity securities, primarily common stocks, of these small cap entities. This strategic investment focus is indicative of a potential pursuit for growth through investing in companies that, while smaller in market capitalization, may offer substantial growth opportunities. The Portfolio, while heavily invested in small cap U.S. companies, also retains the flexibility to diversify its investments. Up to 20% of its assets can be allocated towards other types of securities, which might include equity securities of larger U.S. companies or international firms, even those located in emerging markets, provided they are traded on a U.S. exchange. This approach suggests a balanced strategy aiming for growth while mitigating risks through diversification.

Products and Services

• Equity Securities of Small Cap U.S. Companies:

  The core of the Portfolio's investment strategy focuses on purchasing equity securities, principally common stocks, of small cap U.S. companies. Targeting these entities allows the Portfolio to possibly reap the benefits of growth in these more nimble and potentially fast-growing companies. This strategy banks on the dynamic nature of small cap markets, aiming to achieve higher returns compared to investments in larger, more established companies, albeit with higher risk.

• Investments in Larger U.S. Companies:

  As part of its diversification strategy, the Portfolio is allowed to invest up to 20% of its assets in securities that are not strictly equity securities of small cap U.S. companies. This includes the option to invest in larger U.S. companies, a move that can help balance the Portfolio's risk profile by integrating more stable, less volatile investments alongside its primary focus on small cap stocks.

• Non-U.S. Companies, Including Emerging Markets:

  The Portfolio also has the latitude to diversify its investment reach to include non-U.S. companies, including those from emerging markets, as long as these securities are traded on a U.S. exchange. This not only broadens the geographical exposure and potential growth avenues for the Portfolio but also introduces a layer of international diversification, potentially mitigating risks associated with having investments solely in the U.S. economy and allowing investors to capitalize on growth opportunities in emerging markets.