N-Q 1 c34497.htm c34497

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number               811-06312

THE LAZARD FUNDS, INC.
(Exact name of Registrant as specified in charter)

30 Rockefeller Plaza
New York, New York 10112
(Address of principal executive offices)        (Zip code)

Nathan A. Paul, Esq.
Lazard Asset Management LLC
30 Rockefeller Plaza
New York, New York 10112
(Name and address of agent for service)

Registrant's telephone number, including area code:       (212) 632-6000

Date of fiscal year end:       12/31

Date of reporting period:     9/30/2004

FORM N-Q

Item 1. Schedule of Investments.
   

 
The Lazard Funds, Inc.
Portfolios of Investments
September 30, 2004 (unaudited)
 

Description Shares   Value  
 
Lazard Equity Portfolio          
Common Stocks—94.9%          
Aerospace & Defense—2.5%          
   Lockheed Martin Corp. 33,300   $ 1,857,474  
   United Technologies Corp. (c) 13,400   1,251,292  
     
 
      3,108,766  
     
 
Airlines—0.7%          
   Southwest Airlines Co. (c) 69,000   939,780  
     
 
Apparel & Textiles—0.4%          
   Reebok International, Ltd. (c) 14,300   525,096  
     
 
Banking—9.8%          
   Bank of America Corp. (c) 66,300     2,872,779  
   Golden West Financial Corp. (c) 11,400     1,264,830  
   M&T Bank Corp. (c) 11,800     1,129,260  
   North Fork Bancorporation, Inc. (c) 34,600     1,537,970  
   Northern Trust Corp. 28,400     1,158,720  
   SunTrust Banks, Inc. (c) 26,000     1,830,660  
   U.S. Bancorp (c) 24,800     716,720  
   Wells Fargo & Co. 31,300   1,866,419  
     
 
      12,377,358  
     
 
Business Services &          
      Supplies—4.5%          
   Accenture, Ltd., Class A (a), (c) 27,700     749,285  
   ARAMARK Corp., Class B (c) 51,300     1,238,382  
   Automatic Data Processing, Inc. (c) 31,400     1,297,448  
   First Data Corp. (c) 24,100     1,048,350  
   IAC/InterActiveCorp. (a), (c) 29,900     658,398  
   Pitney Bowes, Inc. 14,700   648,270  
     
 
      5,640,133  
     
 
Cable & Broadcasting—1.3%          
   Comcast Corp., Class A (a), (c) 60,700   1,694,744  
     
 
Chemicals—2.0%          
   Du Pont (E.I.) de Nemours & Co. 32,200     1,378,160  
   Praxair, Inc. 27,800   1,188,172  
     
 
      2,566,332  
     
 
Computer Software—2.9%          
   Microsoft Corp. 86,300     2,386,195  
   Oracle Corp. (a) 118,900   1,341,192  
     
 
      3,727,387  
     
 
Computers & Business          
      Equipment—3.0%          
   Cisco Systems, Inc. (a) 50,600     915,860  
   Hewlett-Packard Co. (c) 53,800     1,008,750  
   International Business Machines Corp. 22,100   1,894,854  
     
 
      3,819,464  
     
 
Consumer Products—0.9%          
   Altria Group, Inc. (c) 23,800     1,119,552  
     
 
Containers—1.8%          
   Pactiv Corp. (a), (c) 37,900     881,175  
   Sealed Air Corp. (a), (c) 29,000   1,344,150  
     
 
      2,225,325  
     
 
Cosmetics & Toiletries—0.4%          
   Colgate-Palmolive Co. 11,800   533,124  
     
 
Diversified—4.1%          
   Emerson Electric Co. 20,300     1,256,367  
   General Electric Co. (c) 80,900     2,716,622  
   Tyco International, Ltd. (c) 40,400   1,238,664  
     
 
      5,211,653  
     
 
Drugs & Health Care—5.4%          
   Amgen, Inc. (a) 11,200     634,816  
   Anthem, Inc. (a), (c) 10,000     872,500  
   GlaxoSmithKline PLC ADR (c) 19,100     835,243  
   Medco Health Solutions, Inc. (a) 37,700     1,164,930  
   Novartis AG ADR (c) 17,600     821,392  
   Pfizer, Inc. 61,700     1,888,020  
   Wyeth (c) 16,600   620,840  
     
 
      6,837,741  
     
 
Environmental—1.2%          
   Republic Services, Inc. (c) 52,600   1,565,376  
     
 
Financial Services—10.5%          
   American Express Co. (c) 44,400     2,284,824  
   Citigroup, Inc. 75,597     3,335,340  
   Fifth Third Bancorp (c) 26,500     1,304,330  
   J.P. Morgan Chase & Co. (c) 76,072     3,022,340  
   Lehman Brothers Holdings, Inc. (c) 8,100     645,732  
   Merrill Lynch & Co., Inc. 16,600     825,352  
   Morgan Stanley (c) 36,900   1,819,170  
     
 
      13,237,088  
     
 
Food & Beverages—5.8%          
   General Mills, Inc. (c) 28,200     1,266,180  
   H.J. Heinz Co. 24,400     878,888  
   PepsiCo, Inc. 14,640     712,236  
   Sara Lee Corp. (c) 39,900     912,114  
   Sysco Corp. (c) 16,500     493,680  
   The Coca-Cola Co. (c) 37,600     1,505,880  
   The Kroger Co. (a), (c) 75,600     1,173,312  
   The Pepsi Bottling Group, Inc. (c) 13,000   352,950  
     
 
      7,295,240  
     
 

1

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 

Description Shares   Value  
 
Lazard Equity Portfolio (continued)          
Forest & Paper Products—0.8%          
   International Paper Co. (c) 25,700   $ 1,038,537  
     
 
Insurance—5.9%          
   American International Group, Inc. 34,569     2,350,346  
   Berkshire Hathaway, Inc., Class A (a) 16     1,386,400  
   Jefferson-Pilot Corp. (c) 12,900     640,614  
   Principal Financial Group, Inc. (c) 19,300     694,221  
   RenaissanceRe Holdings, Ltd. (c) 22,800     1,176,024  
   The Hartford Financial Services          
      Group, Inc. 9,700     600,721  
   XL Capital, Ltd., Class A (c) 8,500   628,915  
     
 
      7,477,241  
     
 
Leisure & Entertainment—0.7%          
   Mattel, Inc. (c) 45,400   823,102  
     
 
Medical Products &          
      Services—2.9%          
   Baxter International, Inc. (c) 26,300     845,808  
   Johnson & Johnson 31,000     1,746,230  
   MedImmune, Inc. (a) 47,100   1,116,270  
     
 
      3,708,308  
     
 
Metals & Mining—1.3%          
   Alcoa, Inc. (c) 48,500   1,629,115  
     
 
Multimedia—3.0%          
   Clear Channel Communications, Inc. (c) 17,900     557,943  
   Time Warner, Inc. (a) 73,200     1,181,448  
   Tribune Co. (c) 24,000     987,600  
   Viacom, Inc., Class B 32,200   1,080,632  
     
 
      3,807,623  
     
 
Oil & Gas—9.1%          
   Burlington Resources, Inc. 35,500     1,448,400  
   ChevronTexaco Corp. (c) 28,858     1,547,943  
   ConocoPhillips 18,080     1,497,928  
   Exxon Mobil Corp. (c) 84,028     4,061,074  
   GlobalSantaFe Corp. (c) 31,300     959,345  
   Schlumberger, Ltd. 11,500     774,065  
   Unocal Corp. (c) 27,600   1,186,800  
     
 
      11,475,555  
     
 
Restaurants—1.1%          
   Darden Restaurants, Inc. (c) 29,600     690,272  
   Yum! Brands, Inc. 18,200   740,012  
     
 
      1,430,284  
     
 
Retail—3.2%          
   Sears, Roebuck & Co. (c) 13,600     541,960  
   Target Corp. 23,600     1,067,900  
   The Home Depot, Inc. 47,800     1,873,760  
   Wal-Mart Stores, Inc. 11,800   627,760  
     
 
      4,111,380  
     
 
Semiconductors &          
      Components—1.8%          
   Intel Corp. 41,800     838,508  
   Novellus Systems, Inc. (a), (c) 30,300     805,677  
   Texas Instruments, Inc. 27,400   583,072  
     
 
      2,227,257  
     
 
Telecommunications—4.0%          
   BellSouth Corp. (c) 46,300     1,255,656  
   Motorola, Inc. (c) 42,400     764,896  
   Sprint Corp. 33,800     680,394  
   Verizon Communications, Inc. 60,100   2,366,738  
     
 
      5,067,684  
     
 
Transportation—0.5%          
   Union Pacific Corp. (c) 11,300   662,180  
     
 
Utilities—3.4%          
   Ameren Corp. (c) 13,700     632,255  
   Duke Energy Corp. (c) 17,400     398,286  
   Entergy Corp. (c) 14,300     866,723  
   KeySpan Corp. 25,300     991,760  
   The Southern Co. (c) 46,800   1,403,064  
     
 
      4,292,088  
     
 
Total Common Stocks          
   (Identified cost $108,077,281)     120,174,513  
     
 
Preferred Stock—2.6%          
Multimedia—2.6%          
   The News Corp., Ltd. Sponsored ADR          
      (Identified cost $3,545,777) 104,200   3,264,586  
     
 
  Principal        
  Amount        
  (000)      
 
       
Short-Term Investments—27.6%          
Repurchase Agreement—2.9%          
   State Street Bank and Trust Co.,          
      1.55%, 10/01/04, (Dated 09/30/04,          
      collateralized by $3,695,000          
      United States Treasury Note,          
      2.75%, 07/31/06, with a value          
      of $3,722,713) $     3,647     3,647,000  
     
 

2

  
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 

  Principal      
  Amount      
Description (000)   Value  
 
Lazard Equity Portfolio (concluded)          
Collateral for Securities          
      on Loan—24.7%          
   State Street Navigator Securities          
      Lending Prime Portfolio,          
      1.64% (e), (f) $ 31,259   $ 31,259,150  
     
 
Total Short-Term Investments          
   (Identified cost $34,906,150)     34,906,150  
     
 
Total Investments          
   (Identified cost $146,529,208) (b) 125.1 % $ 158,345,249  
Liabilities in Excess of Cash and          
   Other Assets (25.1 ) (31,773,862 )
 
 
 
Net Assets 100.0 % $ 126,571,387  
 
 
 

3

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 

 

Description Shares   Value  
 
Lazard Mid Cap Portfolio          
Common Stocks—97.9%          
Aerospace & Defense—1.1%          
   Alliant Techsystems, Inc. (a) 13,200   $ 798,600  
     
 
Airlines—1.9%          
   Southwest Airlines Co. 99,500   1,355,190  
     
 
Apparel & Textiles—3.2%          
   Polo Ralph Lauren Corp. (c) 29,100     1,058,367  
   Reebok International, Ltd. 34,100   1,252,152  
     
 
      2,310,519  
     
 
Automotive—1.7%          
   Lear Corp. 22,800   1,241,460  
     
 
Banking—4.6%          
   City National Corp. 10,800     701,460  
   M&T Bank Corp. 7,200     689,040  
   Mercantile Bankshares Corp. 14,400     690,624  
   North Fork Bancorporation, Inc. (c) 28,600   1,271,270  
     
 
      3,352,394  
     
 
Business Services &          
      Supplies—9.1%          
   ARAMARK Corp., Class B 64,300     1,552,202  
   Arbitron, Inc. (a) 32,000     1,171,520  
   Avery Dennison Corp. 23,700     1,558,986  
   CDW Corp. 17,300     1,003,919  
   Iron Mountain, Inc. (a) 21,500     727,775  
   Pitney Bowes, Inc. 13,000   573,300  
     
 
      6,587,702  
     
 
Chemicals—2.8%          
   Ashland, Inc. 11,900     667,352  
   Rohm & Haas Co. 31,000   1,332,070  
     
 
      1,999,422  
     
 
Computer Software—5.4%          
   BEA Systems, Inc. (a) 40,200     277,782  
   DST Systems, Inc. (a) 29,800     1,325,206  
   Ingram Micro, Inc., Class A (a) 36,700     590,870  
   PeopleSoft, Inc. (a) 14,100     279,885  
   Siebel Systems, Inc. (a) 46,000     346,840  
   Storage Technology Corp. (a) 44,100   1,113,966  
     
 
      3,934,549  
     
 
Containers—3.4%          
   Ball Corp. 29,700     1,111,671  
   Pactiv Corp. (a) 57,700   1,341,525  
     
 
      2,453,196  
     
 
Diversified—1.1%          
   ITT Industries, Inc. 10,100     807,899  
     
 
Drugs & Health Care—3.0%          
   Health Net, Inc. (a) 36,500     902,280  
   Medco Health Solutions, Inc. (a) 40,300   1,245,270  
     
 
      2,147,550  
     
 
Education—1.5%          
   Leapfrog Enterprises, Inc. (a), (c) 53,200   1,077,300  
     
 
Environmental—1.6%          
   Republic Services, Inc. (c) 40,300   1,199,328  
     
 
Financial Services—6.2%          
   Federated Investors, Inc., Class B 30,400     864,576  
   First Horizon National Corp. 17,600     763,136  
   Legg Mason, Inc. 21,900     1,166,613  
   SEI Investments Co. 26,700     899,256  
   The Student Loan Corp. 5,800   822,150  
     
 
      4,515,731  
     
 
Food & Beverages—1.2%          
   The Pepsi Bottling Group, Inc. 32,900   893,235  
     
 
Household Products &          
      Home Furnishings—0.3%          
   The Black & Decker Corp. 3,000   232,320  
     
 
Insurance—3.5%          
   Protective Life Corp. 35,500     1,395,505  
   RenaissanceRe Holdings, Ltd. 22,400   1,155,392  
     
 
      2,550,897  
     
 
Leisure & Entertainment—2.0%          
   Mattel, Inc. 78,200   1,417,766  
     
 
Medical Products &          
      Services—7.4%          
   DaVita, Inc. (a) 39,400     1,227,310  
   Edwards Lifesciences Corp. (a), (c) 29,700     994,950  
   Laboratory Corp. of America          
      Holdings (a), (c) 44,200     1,932,424  
   VISX, Inc. (a), (c) 59,300   1,221,580  
     
 
      5,376,264  
     
 
Multimedia—4.0%          
   Belo Corp., Class A 40,600     915,124  
   Westwood One, Inc. (a) 101,900   2,014,563  
     
 
      2,929,687  
     
 

4

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 

Description Shares   Value  
 
Lazard Mid Cap Portfolio (concluded)          
Oil & Gas—6.3%          
   Baker Hughes, Inc. 20,100   $ 878,772  
   GlobalSantaFe Corp. 53,000     1,624,450  
   Premcor, Inc. (a) 12,700     488,950  
   Unocal Corp. 24,100     1,036,300  
   Valero Energy Corp. 7,000   561,470  
     
 
      4,589,942  
     
 
Printing & Publishing—2.7%          
   Dex Media, Inc. (a) 92,800   1,964,576  
     
 
Real Estate—3.4%          
   AMB Property Corp. 18,900     699,678  
   Archstone-Smith Trust 22,500     711,900  
   Health Care Property Investors, Inc. 40,800   1,060,800  
     
 
      2,472,378  
     
 
Restaurants—2.3%          
   Darden Restaurants, Inc. 39,600     923,472  
   Yum! Brands, Inc. 17,600   715,616  
     
 
      1,639,088  
     
 
Retail—9.1%          
   Abercrombie & Fitch Co., Class A 19,000     598,500  
   Circuit City Stores, Inc. 58,300     894,322  
   Dollar Tree Stores, Inc. (a) 69,500     1,873,025  
   Limited Brands 52,600     1,172,454  
   Safeway, Inc. (a) 36,400     702,884  
   Sears, Roebuck & Co. (c) 33,500   1,334,975  
     
 
      6,576,160  
     
 
Semiconductors &          
      Components—3.9%          
   AMIS Holdings, Inc. (a), (c) 49,200     665,184  
   Intersil Corp., Class A 41,000     653,130  
   Novellus Systems, Inc. (a) 37,000     983,830  
   QLogic Corp. (a) 16,900   500,409  
     
 
      2,802,553  
     
 
Steel—1.6%          
   International Steel Group, Inc. 35,600   1,199,720  
     
 
Telecommunications—0.8%          
   MCI, Inc. (a) 32,700   547,725  
     
 
Transportation—1.6%          
   Norfolk Southern Corp. 39,800   1,183,652  
     
 
Utilities—1.2%          
   KeySpan Corp. 23,100   905,520  
     
 
Total Common Stocks          
   (Identified cost $63,408,120)     71,062,323  
     
 
  Principal      
  Amount      
(000)    
 
     
Short-Term Investments—13.3%          
Repurchase Agreement—2.4%          
   State Street Bank and Trust Co.,          
      1.55%, 10/01/04, (Dated 09/30/04,          
      collateralized by $1,780,000          
      United States Treasury Note,          
      1.625%, 01/31/05, with a value          
      of $1,784,450) $ 1,746     1,746,000  
     
 
Collateral for Securities          
      on Loan—10.9%          
   State Street Navigator Securities          
      Lending Prime Portfolio,          
      1.64% (e), (f) 7,942   7,942,224  
     
 
Total Short-Term Investments          
   (Identified cost $9,688,224)     9,688,224  
     
 
Total Investments          
   (Identified cost $73,096,344) (b) 111.2 % $ 80,750,547  
Liabilities in Excess of Cash          
   and Other Assets (11.2 ) (8,143,915 )
 
 
 
Net Assets 100.0 % $ 72,606,632  
 
 
 

5

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 

Description Shares     Value  
 
Lazard Small Cap Portfolio          
Common Stocks—99.4%          
Aerospace & Defense—1.3%          
   DRS Technologies, Inc. (a), (c) 164,500   $ 6,158,880  
     
 
Agriculture—1.0%          
   Delta & Pine Land Co. (c) 167,500   4,480,625  
     
 
Apparel & Textiles—5.5%          
   Hot Topic, Inc. (a) 45,500     775,320  
   K-Swiss, Inc., Class A (c) 309,800     5,963,650  
   Kellwood Co. (c) 173,100     6,309,495  
   The Gymboree Corp. (a), (c) 296,700     4,272,480  
   The Sports Authority, Inc. (a), (c) 107,000     2,482,400  
   The Timberland Co., Class A (a) 106,800   6,066,240  
     
 
      25,869,585  
     
 
Automotive—0.5%          
   TBC Corp. (a) 116,100   2,593,674  
     
 
Banking—8.5%          
   First Community Bancorp (c) 80,000     3,280,000  
   First Midwest Bancorp, Inc. (c) 163,400     5,647,104  
   First Republic Bank (c) 63,000     2,898,000  
   Hudson United Bancorp (c) 49,000     1,805,650  
   Provident Bankshares Corp. (c) 83,000     2,784,650  
   Sterling Bancshares, Inc. (c) 402,600     5,414,970  
   Texas Regional Bancshares, Inc.,          
      Class A (c) 77,700     2,415,693  
   Umpqua Holdings Corp. (c) 83,400     1,881,504  
   United Bankshares, Inc. (c) 148,800     5,155,920  
   W Holding Co., Inc. (c) 197,551     3,753,469  
   Westamerica Bancorporation (c) 90,500   4,967,545  
     
 
      40,004,505  
     
 
Building & Construction—2.5%          
   Chicago Bridge & Iron Co.          
      NV, NY Shares (c) 168,500     5,053,315  
   The Shaw Group, Inc. (a), (c) 545,600   6,547,200  
     
 
      11,600,515  
     
 
Business Services &          
      Supplies—10.0%          
   ADVO, Inc. (c) 202,700     6,271,538  
   Arbitron, Inc. (a), (c) 165,000     6,040,650  
   BearingPoint, Inc. (a), (c) 653,600     5,843,184  
   Herman Miller, Inc. (c) 153,200     3,776,380  
   MPS Group, Inc. (a), (c) 539,200     4,534,672  
   ProQuest Co. (a), (c) 195,600     5,026,920  
   Tetra Tech, Inc. (a), (c) 342,100     4,334,407  
   The BISYS Group, Inc. (a), (c) 374,700     5,474,367  
   Veritas DGC, Inc. (a) 73,300     1,669,774  
   Watson Wyatt & Co. Holdings (c) 154,300   4,058,090  
     
 
      47,029,982  
     
 
Chemicals—4.2%          
   Ferro Corp. (c) 267,800     5,840,718  
   Olin Corp. (c) 314,100     6,282,000  
   PolyOne Corp. (a), (c) 365,100     2,745,552  
   Spartech Corp. (c) 201,900   5,067,690  
     
 
      19,935,960  
     
 
Computer Software—4.2%          
   Avocent Corp. (a), (c) 104,700     2,725,341  
   Hyperion Solutions Corp. (a), (c) 137,100     4,660,029  
   JDA Software Group, Inc. (a), (c) 68,600     742,252  
   Mentor Graphics Corp. (a), (c) 209,400     2,296,071  
   Take-Two Interactive          
      Software, Inc. (a), (c) 146,200     4,802,670  
   Verity, Inc. (a) 351,900   4,532,472  
     
 
      19,758,835  
     
 
Computers & Business          
      Equipment—1.6%          
   Advanced Digital Information          
      Corp. (a), (c) 421,500     3,667,050  
   Mercury Computer Systems,          
      Inc. (a), (c) 41,200     1,109,104  
   Photon Dynamics, Inc. (a), (c) 128,300   2,604,490  
     
 
      7,380,644  
     
 
Consumer Products—1.3%          
   The Scotts Co., Class A (a), (c) 94,900   6,087,835  
     
 
Diversified—1.0%          
   The Liberty Corp. (c) 116,500   4,629,710  
     
 
Drugs & Health Care—7.0%          
   Able Laboratories, Inc. (a), (c) 198,100     3,795,596  
   Andrx Corp. (a), (c) 183,500     4,103,060  
   Beverly Enterprises, Inc. (a), (c) 795,900     6,024,963  
   Kindred Healthcare, Inc. (a), (c) 194,700     4,750,680  
   LifePoint Hospitals, Inc. (a), (c) 131,400     3,943,314  
   MIM Corp. (a), (c) 550,400     3,181,312  
   Par Pharmaceutical Cos., Inc. (a), (c) 43,300     1,555,769  
   Select Medical Corp. (c) 415,400   5,578,822  
     
 
      32,933,516  
     
 
Education—2.1%          
   Leapfrog Enterprises, Inc. (a), (c) 279,700     5,663,925  
   Learning Tree International,          
      Inc. (a), (c) 293,400   4,136,940  
     
 
      9,800,865  
     
 

6

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 

Description Shares   Value  
 
Lazard Small Cap Portfolio (continued)          
Electrical Equipment—3.1%          
   Coherent, Inc. (a), (c) 141,900   $ 3,680,886  
   GrafTech International, Ltd. (a), (c) 464,800     6,483,960  
   Plexus Corp. (a), (c) 118,000     1,302,720  
   Rogers Corp. (a), (c) 70,900   3,012,541  
     
 
      14,480,107  
     
 
Electronics—1.1%          
   Electro Scientific Industries,          
      Inc. (a), (c) 66,600     1,155,510  
   Metrologic Instruments, Inc. (a), (c) 267,500   4,239,875  
     
 
      5,395,385  
     
 
Environmental—1.1%          
   Waste Connections, Inc. (a), (c) 165,850   5,254,128  
     
 
Financial Services—5.1%          
   eSPEED, Inc., Class A (a), (c) 386,400     3,798,312  
   Financial Federal Corp. (a), (c) 76,400     2,863,472  
   IndyMac Bancorp, Inc. (c) 69,850     2,528,570  
   Knight Trading Group, Inc.,          
      Class A (a), (c) 540,500     4,988,815  
   MAF Bancorp, Inc. (c) 140,700     6,068,391  
   The South Financial Group, Inc. (c) 139,700   3,939,540  
     
 
      24,187,100  
     
 
Food & Beverages—0.5%          
   The Robert Mondavi Corp.,          
      Class A (a), (c) 62,925   2,464,772  
     
 
Forest & Paper Products—1.0%          
   Packaging Corp. of America 183,600   4,492,692  
     
 
Household Products &          
      Home Furnishings—1.1%          
   Cost Plus, Inc. (a), (c) 140,400   4,967,352  
     
 
Industrial & Machinery—2.1%          
   Nordson Corp. 17,900     614,507  
   Roper Industries, Inc. (c) 84,600     4,861,116  
   Tecumseh Products Co., Class A (c) 100,400   4,203,748  
     
 
      9,679,371  
     
 
Insurance—3.4%          
   Arch Capital Group, Ltd. (a), (c) 152,900     5,953,926  
   Assured Guaranty, Ltd. 274,700     4,576,502  
   Max Re Capital, Ltd. (c) 154,700     3,094,000  
   Reinsurance Group of America,          
      Inc. (c) 62,600   2,579,120  
     
 
      16,203,548  
     
 
Leisure & Entertainment—2.1%          
   Alliance Gaming Corp. (a), (c) 488,600     7,358,316  
   AMC Entertainment, Inc. (a), (c) 122,600   2,346,564  
     
 
      9,704,880  
     
 
Medical Products &          
      Services—4.6%          
   DJ Orthopedics, Inc. (a), (c) 286,200     5,051,430  
   INAMED Corp. (a), (c) 89,100     4,247,397  
   Inveresk Research Group, Inc. (a), (c) 151,000     5,570,390  
   NDCHealth Corp. (c) 23,500     377,175  
   PSS World Medical, Inc. (a), (c) 327,600     3,289,104  
   Varian, Inc. (a) 78,100   2,957,647  
     
 
      21,493,143  
     
 
Oil & Gas—8.1%          
   Cal Dive International, Inc. (a) 87,500     3,116,750  
   Denbury Resources, Inc. (a), (c) 153,400     3,896,360  
   Forest Oil Corp. (a), (c) 80,900     2,436,708  
   Grey Wolf, Inc. (a), (c) 710,800     3,475,812  
   Hanover Compressor Co. (a) 60,400     812,380  
   Key Energy Services, Inc. (a) 803,600     8,879,780  
   Kinder Morgan Management, LLC (a) 109,042     4,527,424  
   Maverick Tube Corp. (a), (c) 129,500     3,989,895  
   Newfield Exploration Co. (a) 55,300     3,386,572  
   The Houston Exploration Co. (a), (c) 60,300   3,578,805  
     
 
      38,100,486  
     
 
Printing & Publishing—1.9%          
   Journal Register Co. (a), (c) 264,100     4,991,490  
   R. H. Donnelley Corp. (a), (c) 84,600   4,175,856  
     
 
      9,167,346  
     
 
Real Estate—2.7%          
   Alexandria Real Estate Equities,          
      Inc. (c) 36,100     2,372,492  
   CarrAmerica Realty Corp. (c) 84,000     2,746,800  
   Maguire Properties, Inc. (c) 126,300     3,070,353  
   The Mills Corp. 84,350   4,375,235  
     
 
      12,564,880  
     
 
Semiconductors &          
      Components—3.4%          
   AMIS Holdings, Inc. (a), (c) 239,500     3,238,040  
   Exar Corp. (a), (c) 360,500     5,104,680  
   Microsemi Corp. (a), (c) 195,600     2,757,960  
   Zoran Corp. (a), (c) 309,100   4,859,052  
     
 
      15,959,732  
     
 

7

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 

Description Shares   Value  
 
Lazard Small Cap Portfolio (concluded)          
Telecommunications—2.6%          
   C-COR.net Corp. (a), (c) 551,500   $ 4,660,175  
   CommScope, Inc. (a), (c) 218,400     4,717,440  
   Wireless Facilities, Inc. (a), (c) 420,800   2,932,976  
     
 
      12,310,591  
     
 
Transportation—2.3%          
   AirTran Holdings, Inc. (a), (c) 341,800     3,404,328  
   Forward Air Corp. (a), (c) 73,500     2,941,470  
   Swift Transportation Co., Inc. (a), (c) 259,000   4,356,380  
     
 
      10,702,178  
     
 
Utilities—2.5%          
   AGL Resources, Inc. (c) 171,700     5,283,209  
   Cleco Corp. (c) 220,800     3,806,592  
   New Jersey Resources Corp. (c) 64,900   2,686,860  
     
 
      11,776,661  
     
 
Total Common Stocks          
   (Identified cost $418,535,159)     467,169,483  
     
 
  Principal        
  Amount        
(000)      
 
       
Convertible Bond—0.0%          
Manufacturing—0.0%          
   TIMCO Aviation Services, Inc.,          
      8.00%, 01/02/07          
      (Identified cost $277) $           1     0  
     
 
Short-Term Investments—25.6%          
Repurchase Agreement—0.9%          
   State Street Bank and Trust Co.,          
      1.55%, 10/01/04, (Dated 09/30/04,          
      collateralized by $4,145,000          
      United States Treasury Note,          
      2.75%, 07/31/06, with a value          
      of $4,176,088) 4,090   4,090,000  
     
 
Collateral for Securities          
      on Loan—24.7%          
   State Street Navigator Securities          
      Lending Prime Portfolio,          
      1.64% (e), (f) 116,215   116,215,084  
     
 
Total Short-Term Investments          
   (Identified cost $120,305,084)     120,305,084  
     
 
Total Investments          
   (Identified cost $538,840,520) (b) 125.0 % $ 587,474,567  
Liabilities in Excess of Cash          
   and Other Assets (25.0 ) (117,316,905 )
 
 
 
Net Assets 100.0 % $ 470,157,662  
 
 
 

8

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 

Description Shares   Value  
 
Lazard International Equity Portfolio          
Common Stocks—96.4%          
Finland—4.9%          
   Nokia Oyj 4,154,200   $ 57,167,440  
   Stora Enso Oyj, R Shares 1,262,000     17,053,355  
     
 
   Total Finland 74,220,795  
     
 
France—10.8%          
   Carrefour SA (c) 603,200     28,371,234  
   Credit Agricole SA (c) 1,347,114     36,741,617  
   Lagardere SCA (c) 231,830     14,379,367  
   Sanofi-Aventis (c) 542,877     39,376,388  
   Total SA (c) 225,225     45,875,628  
     
 
   Total France 164,744,234  
     
 
Germany—11.6%          
   BASF AG 445,600     26,260,499  
   Deutsche Telekom AG (a), (c) 2,267,500     42,074,550  
   E.ON AG 446,600     32,947,825  
   Muenchener Rueckver AG 313,700     30,218,570  
   Schering AG 313,800     19,818,258  
   Siemens AG 353,300     25,981,264  
     
 
   Total Germany 177,300,966  
     
 
Ireland—4.2%          
   Allied Irish Banks PLC 895,257     15,010,774  
   Bank of Ireland 1,938,650     26,124,665  
   CRH PLC 954,479     22,820,161  
     
 
   Total Ireland 63,955,600  
     
 
Italy—3.1%          
   Eni SpA (c) 1,742,300     39,037,415  
   Terna SpA 3,729,600     8,870,593  
     
 
   Total Italy 47,908,008  
     
 
Japan—15.4%          
   ACOM Co., Ltd. 212,490     13,148,680  
   Aiful Corp. 32,300     3,168,017  
   East Japan Railway Co. 3,043     15,737,513  
   Fanuc, Ltd. 427,300     22,486,413  
   Mitsubishi Estate Co., Ltd. 1,692,000     17,654,584  
   NEC Electronics Corp. 244,800     12,504,868  
   Nissan Motor Co., Ltd. 3,062,600     33,345,007  
   Nomura Holdings, Inc. 2,431,000     31,210,498  
   NTT DoCoMo, Inc. 7,618     12,925,337  
   Shin-Etsu Chemical Co., Ltd. 570,200     20,487,157  
   Takeda Pharmaceutical Co., Ltd. 309,100     14,022,592  
   The Sumitomo Trust and          
      Banking Co., Ltd. 2,437,000     14,416,586  
   Tokyo Gas Co., Ltd. 6,631,000     23,524,212  
     
 
   Total Japan 234,631,464  
     
 
Netherlands—6.3%          
   Heineken NV (c) 447,093     13,460,217  
   Koninklijke (Royal) Philips          
      Electronics NV 1,075,725     24,636,770  
   Royal Dutch Petroleum Co. 1,121,366     57,756,784  
     
 
   Total Netherlands 95,853,771  
     
 
Norway—2.0%          
   DnB NOR ASA (c) 1,228,600     9,718,926  
   Statoil ASA (c) 1,394,500     19,990,975  
     
 
   Total Norway 29,709,901  
     
 
Singapore—1.5%          
   Oversea-Chinese Banking          
      Corp., Ltd. 2,678,850     22,276,016  
     
 
Spain—2.1%          
   Altadis SA (c) 770,600     26,224,134  
   Antena 3 de Television SA (a) 107,784     6,414,941  
     
 
   Total Spain 32,639,075  
     
 
Switzerland—6.2%          
   Compagnie Financiere Richemont          
      AG, A Shares 541,300     14,977,108  
   Credit Suisse Group (a) 1,059,320     33,806,280  
   Swiss Re 529,700     30,478,854  
   UBS AG 219,696     15,465,107  
     
 
   Total Switzerland 94,727,349  
     
 
United Kingdom—28.3%          
   Barclays PLC 3,494,600     33,515,338  
   BP PLC 1,514,200     14,453,598  
   Cadbury Schweppes PLC 2,013,926     15,488,262  
   Diageo PLC 2,712,242     33,864,743  
   EMAP PLC 355,100     4,838,557  
   GlaxoSmithKline PLC 2,649,601     57,103,470  
   HSBC Holdings PLC 3,643,269     57,817,737  
   Imperial Tobacco Group PLC 920,040     20,044,880  
   Kesa Electricals PLC 1,405,219     7,196,158  
   Marks & Spencer Group PLC 1,236,300     7,673,407  
   Prudential PLC 2,778,300     22,648,748  
   Rentokil Initial PLC 4,574,400     12,457,787  
   Rio Tinto PLC 520,500     13,996,189  
   Royal Bank of Scotland Group PLC 1,513,700     43,716,256  
   Smiths Group PLC 548,100     7,359,257  
   Unilever PLC 1,971,000     16,040,875  
   Vodafone Group PLC 26,175,500     62,641,323  
     
 
   Total United Kingdom 430,856,585  
     
 
Total Common Stocks          
   (Identified cost $1,326,359,267) 1,468,823,764  
     
 

9

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 

Description
Shares
  Value  
 
Lazard International Equity Portfolio (concluded)            
Preferred Stock—0.6%            
Germany—0.6%            
   Porsche AG            
      (Identified cost $6,626,610)  
14,000
 
$
9,096,880
  
       
 
 
Principal
       
 
Amount
       
 
(000)
       
 
       
Short-Term Investments—13.2%            
Repurchase Agreement—3.3%            
   State Street Bank and Trust Co.,            
      1.55%, 10/01/04, (Dated 09/30/04,            
      collateralized by $51,190,000            
      United States Treasury Notes,            
      1.625%-2.75%, 01/31/05-07/31/06,            
      with a value of $51,539,594) $ 50,519   $ 50,519,000  
       
 
Collateral for Securities            
      on Loan—9.9%            
   State Street Navigator Securities            
      Lending Prime Portfolio,            
      1.64% (e), (f)   150,567     150,566,887  
       
 
Total Short-Term Investments            
   (Identified cost $201,085,887)         201,085,887  
       
 
Total Investments            
   (Identified cost $1,534,071,764) (b) . . 110.2 % $ 1,679,006,531  
Liabilities in Excess of Cash            
   and Other Assets   (10.2 )   (154,889,974 )
 
 
 
Net Assets
100.0
 % $ 1,524,116,557  
 
 
 

10

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 

Description
Shares
Value
 
 
Lazard International Equity Select Portfolio
     
Common Stocks—96.2%
     
Denmark—2.2%
     
      Danske Bank A/S Sponsored ADR
12,300
  
$
 323,328  
 
 
 
Finland—4.2%
 
 
      Nokia Oyj Sponsored ADR 45,200   620,144  
     
 
France—10.6%
     
      Axa Sponsored ADR
14,450
   293,046  
      Sanofi-Aventis ADR
9,280
   339,741  
      Societe Generale Sponsored ADR
26,500
   469,013  
      Total SA Sponsored ADR
4,600
   469,982  
     
 
Total France
1,571,782
  
     
 
Germany—4.4%
     
      Schering AG ADR
5,400
   338,850  
      Siemens AG Sponsored ADR
4,300
   316,910  
     
 
Total Germany
655,760
  
     
 
Ireland—3.3%
     
      Allied Irish Banks PLC
     
         Sponsored ADR
14,500		   482,415  
     
 
Italy—5.2%
     
      Eni SpA Sponsored ADR
4,400
   494,120  
      SanPaolo IMI SpA Sponsored ADR
12,600		   284,760  
     
 
Total Italy
778,880
  
     
 
Japan—8.4%
     
      Canon, Inc. Sponsored ADR
8,900
   419,724  
      Kao Corp. Sponsored ADR
1,900
   419,770  
      Nomura Holdings, Inc. ADR
31,500
   406,665  
     
 
Total Japan
1,246,159
  
     
 
Netherlands—6.0%
     
      Heineken NV ADR
14,700
   442,561  
      Royal Dutch Petroleum Co.,
     
         NY Shares
8,600		   443,760  
     
 
Total Netherlands
886,321
  
     
 
Switzerland—19.0%
     
      Compagnie Financiere Richemont
     
         AG Sponsored ADR
11,500
   318,191  
      Credit Suisse Group
     
         Sponsored ADR (a)
13,700
   437,578  
      Nestle SA Sponsored ADR
6,800
   389,365  
      Novartis AG ADR
10,200
   476,034  
      Roche Holding AG Sponsored ADR
3,000
   309,922  
      Swiss Re Sponsored ADR
4,900
   281,945  
      UBS AG
8,700
   611,871  
     
 
Total Switzerland
2,824,906
  
     
 
United Kingdom—32.9%          
       Barclays PLC Sponsored ADR 17,200     665,468  
       BP PLC Sponsored ADR 8,200     471,746  
       Cadbury Schweppes PLC          
          Sponsored ADR 17,700     547,107  
       Diageo PLC Sponsored ADR 8,700     438,741  
       GlaxoSmithKline PLC ADR 14,400     629,712  
       HSBC Holdings PLC Sponsored ADR 8,000     638,400  
       Tesco PLC Sponsored ADR 20,200     312,803  
       Unilever PLC Sponsored ADR 16,000     528,320  
       Vodafone Group PLC          
          Sponsored ADR 26,600   641,326  
     
 
   Total United Kingdom     4,873,623  
     
 
Total Common Stocks          
   (Identified cost $12,558,351)     14,263,318  
     
 
 
Principal
       
 
Amount
       
 
(000)
     
 
       
Repurchase Agreement—3.8%          
   State Street Bank and Trust Co.,          
      1.55%, 10/01/04, (Dated 09/30/04,          
      collateralized by $560,000          
      United States Treasury Note,          
      4.25%, 11/15/13, with a value          
      of $576,800)          
      (Identified cost $561,000)
$
 561     561,000  
     
 
Total Investments          
   (Identified cost $13,119,351) (b) 100.0 % $ 14,824,318  
Cash and Other Assets in          
   Excess of Liabilities 0.0   6,939  
 
 
 
Net Assets 100.0 % $ 14,831,257  
 
 
 

11

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 

Description
Shares   Value  
 
Lazard International Small Cap Portfolio        
Common Stocks—98.7%        
Australia—3.1%        
      John Fairfax Holdings, Ltd. 2,899,196  
$
7,791,121  
      Macquarie Infrastructure Group 4,880,732   13,222,241  
     
 
Total Australia     21,013,362  
     
 
Austria—1.6%        
Erste Bank der Oesterreichischen        
         Sparkassen AG   255,800   10,643,070  
     
 
Belgium—0.1%        
      Solvus SA (a) 38,260   609,192  
     
 
Finland—4.4%        
      Amer Group, Ltd. 254,600   12,016,101  
      Sampo Oyj, A Shares 1,005,400   11,113,490  
      Tietoenator Oyj 216,200   6,261,896  
     
 
Total Finland     29,391,487  
     
 
France—4.0%        
      Carbone Lorraine SA (a), (c) 160,800   6,241,050  
      Neopost SA (c) 327,300   21,016,390  
     
 
Total France     27,257,440  
     
 
Germany—5.9%        
      Fielmann AG (c) 146,700   8,763,887  
      MG Technologies AG (a) 798,700   9,840,495  
      Puma AG 53,700   14,387,531  
      Techem AG (a) 257,846   7,093,421  
     
 
Total Germany     40,085,334  
     
 
Greece—1.5%        
      OPAP SA 519,750   9,979,886  
     
 
Hong Kong—3.4%        
      Esprit Holdings, Ltd. 2,680,965   13,717,597  
      Shaw Brothers (Hong Kong), Ltd. 1,379,500   1,344,464  
      Texwinca Holdings, Ltd. (c) 9,372,000   7,932,137  
     
 
Total Hong Kong     22,994,198  
     
 
Ireland—3.7%        
      Anglo Irish Bank Corp. PLC   713,406   13,069,241  
      DCC PLC   633,900   11,612,731  
     
 
Total Ireland     24,681,972  
     
 
Italy—1.7%        
      Davide Campari-Milano SpA (c) 226,700   11,403,236  
     
 
Japan—18.2%        
   Credit Saison Co., Ltd. 294,000  
9,042,871  
   Daito Trust Construction Co., Ltd. (c) 335,000   13,556,231  
   Hisamitsu Pharmaceutical Co., Inc. 551,000   9,873,656  
   JSR Corp. 444,500   7,178,787  
   Leopalace21 Corp. 613,000   11,318,378  
   Rinnai Corp. 246,200   7,505,621  
   Sammy Corp. (c) 174,600   8,554,552  
   Sanyo Shokai, Ltd. 1,190,000   7,093,681  
   Secom Techno Service Co., Ltd. 114,000   3,889,126  
   The Suruga Bank, Ltd. 1,379,000   9,821,848  
   Uniden Corp. 568,000   11,930,499  
   USS Co., Ltd. (c) 146,800   11,068,439  
   Yamada Denki Co., Ltd. (c) 199,800   6,888,718  
   Yoshinoya D&C Co., Ltd. (c) 3,317   5,146,368  
     
 
   Total Japan     122,868,775  
     
 
Netherlands—10.4%        
   Euronext NV 247,600   7,045,265  
   Fugro NV (c) 176,527   13,757,720  
   Holdingmaatschappij De        
      Telegraaf NV (c) 449,700   10,165,198  
   Hunter Douglas NV 369,032   16,953,913  
   IHC Caland NV (c) 147,402   7,630,494  
   James Hardie Industries NV 1,673,700   6,983,105  
   Koninklijke Boskalis        
      Westminster NV 295,936   7,847,246  
     
 
   Total Netherlands     70,382,941  
     
 
Norway—1.4%        
   DnB NOR ASA (c) 1,235,100   9,770,345  
     
 
Spain—7.2%        
   Abengoa SA 638,000   5,895,426  
   Aldeasa SA (c) 268,500   8,253,556  
   Corporacion Mapfre SA 1,121,626   13,164,412  
   Gestevision Telecinco SA (a), (c) 156,950   2,838,208  
   Indra Sistemas SA 803,600   10,699,323  
   Prosegur Compania de Seguridad        
      SA (c) 477,800   7,868,850  
     
 
   Total Spain     48,719,775  
     
 
Sweden—6.4%        
   Alfa Laval AB (c) 674,300   9,817,835  
   Autoliv, Inc. (c) 176,300   7,046,963  
   Getinge AB, B Shares 827,800   10,062,951  
   Swedish Match AB (c) 1,522,200   16,099,750  
     
 
   Total Sweden     43,027,499  
     
 

12

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
Description
Shares
Value
 
 
Lazard International Small Cap Portfolio (concluded)
     
Switzerland—3.1%
     
      Edipresse SA
21,584
  
$
 10,976,087  
      Geberit AG
12,800
  9,943,141  
     
 
Total Switzerland
20,919,228
  
     
 
United Kingdom—22.6%
     
      Brit Insurance Holdings PLC
4,955,400
   6,501,102  
      Bunzl PLC
1,104,019
   8,315,743  
      Carpetright PLC
620,500
   11,812,118  
      Cattles PLC
1,187,700
   7,097,736  
      Cookson Group PLC (a)
11,983,800
   6,505,581  
      Enterprise Inns PLC
800,300
   8,254,636  
      George Wimpey PLC
1,224,800
   8,909,667  
      Halfords Group PLC
1,398,920
   7,391,728  
      Intertek Group PLC
909,500
   9,874,707  
      Kesa Electricals PLC
1,419,300
   7,268,267  
      Kidde PLC
5,511,300
   12,316,612  
      Man Group PLC
454,627
   9,781,542  
      Northgate PLC
790,700
   10,015,671  
      Regus Group PLC (a)
6,077,583
   7,615,895  
      Signet Group PLC Sponsored
     
         ADR (c)
220,912
   13,738,517  
      Trinity Mirror PLC
730,300
   8,695,558  
      William Hill PLC
831,900
   8,031,114  
      Wood Group (John) PLC
116,489
   291,421  
     
 
Total United Kingdom
152,417,615
  
     
 
Total Common Stocks
     
(Identified cost $472,491,718)
666,165,355
  
     
 
Warrants—0.0%
     
France—0.0%
     
Carbone Lorraine SA Right,
     
         10/06/04 (a), (g)
160,800     261,625  
     
 
Japan—0.0%
     
Belluna Co., Ltd. Right,
     
         09/29/06 (a), (g)
21,850     0  
     
 
Total Warrants
     
(Identified cost $20,894)
261,625
  
     
 
  Principal      
  Amount      
(000)    
 
     
Short-Term Investments—13.7%            
Repurchase Agreement—0.8%            
   State Street Bank and Trust Co.,            
      1.55%, 10/01/04, (Dated 09/30/04,            
      collateralized by $5,305,000            
      United States Treasury Note,            
      2.75%, 07/31/06, with a value            
      of $5,344,788) $ 5,238  
$
 5,238,000  
       
 
Collateral for Securities            
      on Loan—12.9%            
   State Street Navigator Securities            
      Lending Prime Portfolio,            
      1.64% (e), (f)   87,459   87,459,287  
       
 
Total Short-Term Investments            
   (Identified cost $92,697,287)       92,697,287  
       
 
Total Investments            
   (Identified cost $565,209,899) (b) 112.4 % $ 759,124,267  
Liabilities in Excess of Cash            
   and Other Assets (12.4 ) (83,934,005 )
 
 
 
Net Assets 100.0 % $ 675,190,262  
 
 
 

13

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
Description
 Shares   Value  
 
Lazard Emerging Markets Portfolio        
Common Stocks—89.8%        
Argentina—0.9%        
   Tenaris SA ADR 136,142  
$
 6,206,714  
     
 
Brazil—7.7%        
   Brasil Telecom Participacoes SA        
      ADR (c) 111,800   3,622,320  
   Companhia de Concessoes        
      Rodoviarias 531,600   6,851,857  
   Companhia Vale do Rio Doce        
      ADR 807,000   18,133,290  
   Empresa Brasileira de Aeronautica        
      SA ADR (c) 194,700   5,140,080  
   Petroleo Brasileiro SA ADR (c) 271,100   9,556,275  
   Souza Cruz SA 740,600   8,025,110  
     
 
   Total Brazil     51,328,932  
     
 
Chile—1.4%        
   Administradora de Fondos de        
      Pensiones Provida SA        
      Sponsored ADR 360,400   9,593,848  
     
 
China—0.7%        
   People’s Food Holdings, Ltd. 6,915,000   4,764,433  
     
 
Croatia—1.0%        
   Pliva d.d. GDR (d) 448,950   6,848,014  
     
 
Czech Republic—0.8%        
   Cesky Telecom AS 384,900   5,115,131  
     
 
Egypt—3.6%        
   Commercial International Bank 2,285,300   11,259,730  
   MobiNil 313,545   5,531,668  
   Orascom Construction Industries 242,181   5,243,695  
   Orascom Telecom Holding        
      SAE (a) 58,354   1,778,229  
     
 
   Total Egypt     23,813,322  
     
 
Hong Kong—4.0%        
   China Mobile (Hong Kong), Ltd.        
      Sponsored ADR (c) 538,900   8,245,170  
   CNOOC, Ltd. ADR (c) 115,800   6,091,080  
   Pacific Basin Shipping, Ltd. (a) 16,574,000   7,120,101  
   Texwinca Holdings, Ltd. 6,396,000   5,413,353  
     
 
   Total Hong Kong     26,869,704  
     
 
Hungary—2.0%        
   Gedeon Richter Rt 72,090   8,644,932  
   MOL Magyar Olaj-es        
      Gazipari Rt 100,500   4,909,159  
     
 
   Total Hungary     13,554,091  
     
 
India—7.9%        
   Hero Honda Motors, Ltd. 431,700  
4,203,444		  
   Hindalco Industries, Ltd. 340,847   9,986,817  
   Hindustan Lever, Ltd. 1,903,600   5,191,448  
   Reliance Industries, Ltd. 957,700   10,788,699  
   Satyam Computer Services, Ltd. 1,183,100   9,706,564  
   State Bank of India 1,238,800   12,608,830  
     
 
   Total India     52,485,802  
     
 
Indonesia—4.1%        
   PT Hanjaya Mandala        
      Sampoerna Tbk 24,718,800   16,461,209  
   PT Telekomunikasi Indonesia        
      Tbk Sponsored ADR (c) 611,300   10,813,897  
     
 
   Total Indonesia     27,275,106  
     
 
Israel—1.0%        
   Bank Hapoalim, Ltd. 2,327,100   6,435,889  
     
 
Mexico—6.6%        
   America Telecom SA de CV,        
      Series A1 Shares (a) 2,159,500   4,658,952  
   Fomento Economico Mexicano SA        
      de CV Sponsored ADR (c) 112,400   4,965,832  
   Grupo Televisa SA Sponsored ADR
144,200
7,603,666
  
         
   Kimberly-Clark de Mexico SA        
      de CV, Series A Shares 1,685,100   4,940,399  
   Telefonos de Mexico SA de CV,        
      Series L Shares Sponsored ADR 478,500   15,441,195  
   Urbi, Desarrollos Urbanos, SA        
      de CV 1,695,300   6,199,869  
     
 
   Total Mexico     43,809,913  
     
 
Peru—0.8%        
   Credicorp, Ltd. (c) 392,400   5,509,296  
     
 
Philippines—0.8%        
   Philippine Long Distance        
      Telephone Co. Sponsored        
      ADR (a), (c) 204,700   5,125,688  
     
 
Russia—1.5%        
   LUKOIL Sponsored ADR 44,000   5,489,000  
   Wimm-Bill-Dann Foods OJSC        
      ADR (a) 287,900   4,390,475  
     
 
   Total Russia     9,879,475  
     
 

14

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
Description
Shares   Value  
 
Lazard Emerging Markets Portfolio (continued)        
South Africa—12.7%        
   ABSA Group, Ltd. 678,423  
$
 6,820,902  
   Edgars Consolidated Stores, Ltd. 256,550   7,488,883  
   Harmony Gold Mining Co., Ltd.        
      Sponsored ADR 594,000   8,090,280  
   Impala Platinum Holdings, Ltd. 115,600   9,265,853  
   Kumba Resources, Ltd. 1,423,100   8,626,513  
   Old Mutual PLC 5,378,500   11,119,561  
   Sanlam, Ltd. 3,090,900   5,231,855  
   Sappi, Ltd. 606,800   8,574,857  
   Sasol, Ltd. 512,200   9,532,062  
   Steinhoff International        
   Holdings, Ltd. 6,313,356   9,506,598  
     
 
Total South Africa     84,257,364  
     
 
South Korea—21.4%        
   Daewoo Shipbuilding & Marine        
      Engineering Co., Ltd. GDR (d) 326,600   9,350,558  
   Hite Brewery Co., Ltd. 69,400   5,098,776  
   Hyundai Motor Co. 163,600   7,544,212  
   Kookmin Bank (a) 560,983   17,757,560  
   KT Corp. Sponsored ADR 616,036   11,131,771  
   LG Chem, Ltd. 182,800   6,937,351  
   LG Electronics, Inc. 92,700   5,329,344  
   LG Household & Health Care,        
      Ltd. 257,500   6,887,538  
   LG Philips LCD Co., Ltd. ADR (c) 439,100   6,652,365  
   POSCO 43,900   6,538,298  
   POSCO ADR 96,700   3,660,095  
   Samsung Electronics Co., Ltd. 71,981   28,629,872  
   Samsung Fire & Marine Insurance        
      Co., Ltd. 115,838   6,669,613  
   Samsung SDI Co., Ltd. 67,700   6,672,992  
   SK Telecom Co., Ltd. 90,930   13,858,632  
     
 
Total South Korea     142,718,977  
     
 
Taiwan—7.2%        
   Advantech Co., Ltd. 3,887,327   7,953,171  
   Chinatrust Financial Holding        
      Co., Ltd. 5,800,513   6,249,596  
   Compal Electronics, Inc. 2,371,145   2,352,299  
   Compal Electronics, Inc. GDR (c) 586,591   2,932,953  
   Fubon Financial Holding Co.,        
      Ltd. 7,857,000   7,216,320  
   Hon Hai Precision Industry        
      Co., Ltd. 2,927,269   10,082,145  
   Taiwan Semiconductor        
      Manufacturing Co., Ltd. 8,646,000   11,020,660  
     
 
Total Taiwan     47,807,144  
     
 
Thailand—1.0%        
   Delta Electronics (Thailand) PCL 6,444,100   2,952,541  
   Thai Union Frozen Products PCL 6,026,600   3,447,928  
     
 
   Total Thailand     6,400,469  
     
 
Turkey—1.2%        
   Akbank TAS 1,713,036,750   7,737,396  
   Turkiye Garanti Bankasi AS 14,000   47  
     
 
   Total Turkey     7,737,443  
     
 
Venezuela—1.5%        
   Compania Anonima Nacional        
      Telefonos de Venezuela        
      ADR (c) 430,873   9,707,569  
     
 
Total Common Stocks        
   (Identified cost $456,012,133)     597,244,324  
     
 
Preferred Stocks—7.6%        
Brazil—7.6%        
   Caemi Mineracao e Metalurgia        
      SA (a) 26,689,900   16,803,715  
   Companhia Brasileira de        
      Distribuicao Grupo Pao de Acucar        
      Sponsored ADR (c) 179,900   3,596,201  
   Companhia de Bebidas das        
      Americas ADR (c) 301,791   6,760,118  
   Companhia Paranaense de        
      Energia-Copel Sponsored ADR 2,070,199   7,390,610  
   Telemar Norte Leste SA 471,017   8,319,818  
   Usinas Siderurgicas de Minas        
      Gerais SA 477,900   7,405,026  
     
 
   Total Brazil     50,275,488  
     
 
Total Preferred Stocks        
   (Identified cost $38,289,213)     50,275,488  
     
 

15

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
  Principal      
  Amount      
Description
 (000)   Value  
 
Lazard Emerging Markets Portfolio (concluded)        
Short-Term Investments—7.7%        
Repurchase Agreement—1.6%        
   State Street Bank and Trust Co.,        
      1.55%, 10/01/04, (Dated 09/30/04,        
      collateralized by $11,095,000        
      United States Treasury Note,        
      2.75%, 07/31/06, with a value        
      of $11,178,213) $
10,957
   $
10,957,000
  
     
 
Collateral for Securities        
      on Loan—6.1%        
   State Street Navigator Securities        
      Lending Prime Portfolio,        
      1.64% (e), (f)
40,403  
40,403,456  
     
 
Total Short-Term Investments        
   (Identified cost $51,360,456)     51,360,456  
     
 
Total Investments        
   (Identified cost $545,661,802) (b) 105.1 %
$
 698,880,268  
Liabilities in Excess of Cash        
   and Other Assets (5.1 ) (33,663,265 )
 
 
 
Net Assets 100.0 %
$
 665,217,003  
 
 
 

16

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
 
Principal
 
 
Amount
 
Description
(000)
Value
 
 
Lazard Bond Portfolio
 
 
Corporate Bonds—43.3%
 
 
Aerospace & Defense—1.9%
 
 
   Boeing Capital Corp.,
 
 
      5.75%, 02/15/07
$
 320  
$
 338,868  
   Lockheed Martin Corp.,
 
 
      8.20%, 12/01/09
345
410,712
  
 
 
 
749,580
  
 
 
Automotive—3.5%
 
   Ford Motor Credit Co.:
 
      7.00%, 10/01/13 (c)
245
259,034
  
      7.25%, 10/25/11
190
205,762
  
   General Motors Acceptance Corp.,
 
      6.875%, 09/15/11
470
493,870
  
   Lear Corp.,
 
      5.75%, 08/01/14 (d)
450
465,283
  
   Venture Holdings Co. LLC,
 
      12.00%, 06/01/09 (a), (h)
50
5
  
 
 
 
1,423,954
  
 
 
Banking—4.4%
 
   Bank One Corp.,
 
      6.00%, 08/01/08
350
378,465
  
   U.S. Bancorp,
 
      3.125%, 03/15/08
425
419,810
  
   Wachovia Corp.,
 
      4.95%, 11/01/06
450
467,133
  
   Wells Fargo & Co.,
 
      5.90%, 05/21/06 (c)
485
509,151
  
 
 
 
1,774,559
  
 
 
Brewery—0.7%
 
   Anheuser-Busch Cos., Inc.,
 
      7.50%, 03/15/12 (c)
250
298,494
  
 
 
Computers & Business
 
      Equipment—1.3%
 
   Hewlett-Packard Co.,
 
      5.50%, 07/01/07
475
501,988
  
 
 
Consumer Products—0.9%
 
   Fortune Brands, Inc.,
 
      2.875%, 12/01/06
375
372,858
  
 
 
Energy—4.1%
 
   Baker Hughes, Inc.,
 
      6.00%, 02/15/09
495
538,055
  
   Conoco Funding Co.,
 
      6.35%, 10/15/11 (c)
430
479,688
  
   Duke Capital LLC,
 
      7.50%, 10/01/09
230
261,660
  
   USX Corp.,
 
      6.65%, 02/01/06
370
387,361
  
 
 
 
1,666,764
  
 
 
Financial Services—10.4%
 
   American General Finance Corp.,
 
      5.375%, 10/01/12 (c)
345
358,252
  
   Bear Stearns Cos., Inc.,
 
      4.00%, 01/31/08
555
562,358
  
   Citigroup, Inc.,
 
      5.00%, 03/06/07 (c)
500
522,078
  
   General Electric Capital Corp.,
 
      5.35%, 03/30/06 (c)
365
379,053
  
   Goldman Sachs Group, L.P.,
 
      5.00%, 10/01/14 (c)
350
346,204
  
   Household Finance Corp.,
 
      6.375%, 08/01/10
430
473,871
  
   MBNA America Bank NA,
 
      7.125%, 11/15/12
225
256,397
  
   MBNA Corp.,
 
      5.625%, 11/30/07
265
280,093
  
   Morgan Stanley,
 
      4.75%, 04/01/14 (c)
485
469,460
  
   SLM Corp.,
 
      4.00%, 01/15/09
530
532,196
  
 
 
 
4,179,962
  
 
 
Food & Beverages—1.3%
 
   Sara Lee Corp.,
 
      6.25%, 09/15/11
475
528,315
  
 
 
Forest & Paper Products—0.6%
 
   Weyerhaeuser Co.,
 
      6.75%, 03/15/12 (c)
215
241,135
  
 
 
Insurance—2.0%
 
   Allstate Corp.,
 
      7.50%, 06/15/13
255
302,670
  
   MetLife, Inc.,
 
      5.00%, 11/24/13
490
491,707
  
 
 
 
794,377
  
 
 

17

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
 
Principal
     
 
Amount
     
Description
(000)
  Value  
 
Lazard Bond Portfolio (concluded)
     
Multimedia—0.7%
     
   Viacom, Inc.,
     
      7.75%, 06/01/05
$
285
  
$
 295,166  
 
 
 
Real Estate—0.6%
     
   Rouse Co.,
     
      5.375%, 11/26/13
250
237,891
  
 
 
Retail—0.7%
 
   Wal-Mart Stores, Inc.,
 
      6.875%, 08/10/09
240
272,410
  
 
 
Telecommunications—2.9%
 
   AT&T Wireless Services, Inc.,
 
      8.125%, 05/01/12
350
422,943
  
   SBC Communications, Inc.,
 
      5.75%, 05/02/06 (c)
460
480,469
  
   Verizon Global Funding Corp.,
 
      6.125%, 06/15/07 (c)
250
267,928
  
 
 
 
1,171,340
  
 
 
Transportation—1.2%
 
   Norfolk Southern Corp.,
 
      6.75%, 02/15/11
410
460,649
  
 
 
Utilities—6.1%
 
   Alabama Power Co.,
 
      2.65%, 02/15/06
345
344,802
  
   MidAmerican Energy Co.,
 
      6.375%, 06/15/06
454
479,074
  
   Public Service Electric & Gas Co.,
 
      6.375%, 05/01/08
500
542,264
  
   Virginia Electric & Power Co., Series A,
 
      5.375%, 02/01/07
575
601,569
  
   Wisconsin Electric Power Co.,
 
      4.50%, 05/15/13
500
493,954
  
 
 
 
2,461,663
  
 
 
Total Corporate Bonds
 
   (Identified cost $17,354,846)
17,431,105
  
 
 
Collateralized Mortgage
 
      Obligation—2.4%
 
   Federal National Mortgage Association,
 
      Series 2003-8, Class BN,
 
      4.50%, 03/25/16
 
      (Identified cost $980,357)
964
974,833
  
 
 
 
Mortgage Pass-Through        
      Securities—7.9%        
   Federal National Mortgage Association:        
      Pool# 255317        
      5.50%, 07/01/19 1,916   1,982,781  
      4.00%, TBA 1,230   1,198,481  
     
 
Total Mortgage Pass-Through        
      Securities        
   (Identified cost $3,184,978)     3,181,262  
     
 
U.S. Government        
      Securities—14.3%        
   Federal Home Loan Mortgage Corp.,        
      1.875%, 02/15/06 2,660   2,635,731  
   Federal National Mortgage Association:        
      2.25%, 05/15/06 430   427,192  
      4.25%, 05/15/09 1,230   1,257,383  
      4.625%, 10/15/13 1,440   1,448,033  
     
 
Total U.S. Government Securities        
   (Identified cost $5,751,688)     5,768,339  
     
 
U.S. Treasury Securities—31.8%        
   United States Treasury Notes:        
      2.00%, 05/15/06 7,520   7,468,789  
      3.875%, 05/15/09 5,220   5,346,115  
     
 
Total U.S. Treasury Securities        
   (Identified cost $12,752,401)     12,814,904  
     
 
Short-Term Investments—11.4%        
Repurchase Agreement—3.5%        
   State Street Bank and Trust Co.,        
      1.55%, 10/01/04, (Dated 09/30/04,        
      collateralized by $1,430,000        
      United States Treasury Note,        
      2.25%, 04/30/06, with a value        
      of $1,438,938) (j)
1,407   1,407,000  
     
 
Collateral for Securities        
      on Loan—7.9%        
   State Street Navigator Securities        
      Lending Prime Portfolio,        
      1.64% (e), (f) 3,204   3,203,613  
     
 
Total Short-Term Investments        
   (Identified cost $4,610,613)     4,610,613  
Total Investments    
 
   (Identified cost $44,634,883) (b) 111.1 % $
44,781,056
  
Liabilities in Excess of Cash        
   and Other Assets (11.1 ) (4,486,858 )
 
 
 
Net Assets 100.0 %
$
40,294,198
  
 
 
 

18

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
  Principal      
  Amount      
Description
 (000)   Value  
 
Lazard High Yield Portfolio        
Corporate Bonds—90.2%        
Aerospace & Defense—1.4%        
   Sequa Corp.,        
      8.875%, 04/01/08 (c)
$
 1,300  
$
 1,410,500  
     
 
Apparel & Textiles—0.3%        
   Foamex L.P.,        
      9.875%, 06/15/07 470   352,500  
     
 
Automotive—3.5%        
   Dana Corp.,        
      9.00%, 08/15/11 (c) 1,100   1,328,250  
   HLI Operating Co., Inc.,        
      10.50%, 06/15/10 520   566,800  
   TRW Automotive, Inc.:        
      9.375%, 02/15/13 870   993,975  
      11.00%, 02/15/13 (c) 227   270,130  
   Venture Holdings Co. LLC,        
      12.00%, 06/01/09 (a), (h) 2,840   284  
   Visteon Corp.,        
      7.00%, 03/10/14 400   380,000  
     
 
      3,539,439  
     
 
Building & Construction—1.1%        
   KB Home,        
      7.75%, 02/01/10 1,060   1,152,750  
     
 
Building Materials—1.6%        
   Legrand SA,        
      8.50%, 02/15/25 925   1,059,125  
   Texas Industries, Inc.,        
      10.25%, 06/15/11 525   603,750  
     
 
      1,662,875  
     
 
Cable Television—5.1%        
   Charter Communications Holdings LLC,        
      10.75%, 10/01/09 (c) 650   533,000  
   CSC Holdings, Inc.,        
      7.625%, 04/01/11 (c) 1,002   1,055,857  
   EchoStar DBS Corp.:        
      5.75%, 10/01/08 250   251,250  
      9.125%, 01/15/09 (c) 195   216,938  
      10.375%, 10/01/07 490   515,421  
   Mediacom Broadband LLC,        
      11.00%, 07/15/13 (c) 825   878,625  
   Pegasus Communications Corp.,        
      12.50%, 08/01/07 (c) 275   178,750  
   Rogers Cable, Inc.,        
      6.25%, 06/15/13 605   592,900  
   Shaw Communications, Inc.,        
      7.25%, 04/06/11 (c) 900   978,750  
     
 
      5,201,491  
     
 
Chemicals—4.7%        
   Acetex Corp.,        
      10.875%, 08/01/09 1,000   1,100,000  
   ARCO Chemical Co.,        
      9.80%, 02/01/20 535   557,737  
   Ethyl Corp.,        
      8.875%, 05/01/10 300   324,000  
   Huntsman ICI Chemicals,        
      10.125%, 07/01/09 (c) 825   866,250  
   Huntsman International LLC,        
      9.875%, 03/01/09 325   358,313  
   ISP Holdings, Inc.,        
      10.625%, 12/15/09 (c) 524   576,400  
   Lyondell Chemical Co.,        
      9.625%, 05/01/07 (c) 500   544,375  
   Westlake Chemical Corp.,        
      8.75%, 07/15/11 471   528,697  
     
 
      4,855,772  
     
 
Consumer Products—2.1%        
   Icon Health & Fitness, Inc.,        
      11.25%, 04/01/12 465   497,550  
   Riddell Bell Holdings,        
      8.375%, 10/01/12 (d) 250   254,062  
   Sola International, Inc.,        
      6.875%, 03/15/08 1,360   1,397,279  
     
 
      2,148,891  
     
 
Containers—2.0%        
   Crown Euro Holdings SA:        
      9.50%, 03/01/11 875   975,625  
      10.875%, 03/01/13 (c) 500   581,250  
   Graham Packaging Co., Inc.:        
      8.50%, 10/15/12 (d) 250   255,000  
      9.875%, 10/15/14 (d) 250   255,938  
     
 
      2,067,813  
     
 
Diversified—1.4%        
   AMSTED Industries, Inc.,        
      10.25%, 10/15/11 (d) 1,345   1,479,500  
     
 
Electronics—2.5%        
   Freescale Semiconductor, Inc.,        
      7.125%, 07/15/14 (c), (d) 750   780,000  
   PerkinElmer, Inc.,        
      8.875%, 01/15/13 650   734,500  
   Thomas & Betts Corp.,        
      7.25%, 06/01/13 1,000   1,070,163  
     
 
      2,584,663  
     
 

19

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
  Principal      
  Amount      
Description
 (000)   Value  
 
Lazard High Yield Portfolio (continued)        
Energy—4.3%        
   ANR Pipeline, Inc.,        
      8.875%, 03/15/10 (c)
$
 500  
$
 562,500  
   Chesapeake Energy Corp.,        
      9.00%, 08/15/12 535   611,238  
   CITGO Petroleum Corp.,        
      11.375%, 02/01/11 1,200   1,413,000  
   Compton Petroleum Corp.,        
      9.90%, 05/15/09 245   271,950  
   Northwest Pipelines Corp.,        
      8.125%, 03/01/10 850   953,062  
   Southern Natural Gas Co.,        
      8.875%, 03/15/10 (c) 500   562,500  
     
 
      4,374,250  
     
 
Environmental—0.9%        
   Allied Waste North America, Inc.,        
      8.875%, 04/01/08 230   249,550  
   Browning-Ferris Industries, Inc.,        
      7.40%, 09/15/35 775   691,688  
     
 
      941,238  
     
 
Equipment Rental—1.9%        
   H&E Equipment Services LLC,        
      11.125%, 06/15/12 780   803,400  
   United Rentals North America, Inc.,        
      6.50%, 02/15/12 (c) 500   481,250  
   Williams Scotsman, Inc.,        
      9.875%, 06/01/07 (c) 700   670,250  
     
 
      1,954,900  
     
 
Financial Services—0.5%        
   Finance One PLC        
      0.00%, 01/03/05 (a), (h), (k) 20,000   0  
   Morgan Guarantee Trust,        
      0.00%, 07/31/06 (a), (h), (k) 10,569   0  
   Refco Finance Holdings LLC,        
      9.00%, 08/01/12 (d) 375   400,312  
   Standard Bank Johannsburg Credit        
      Linked Deposit,        
      7.50%, 01/07/05 2,500   86,305  
     
 
      486,617  
     
 
Food & Beverages—1.5%        
   Burns Philp Capital Property, Ltd.,        
      9.75%, 07/15/12 635   679,450  
   Chiquita Brands International, Inc.,        
      7.50%, 11/01/14 (d) 560   560,000  
   Dole Foods Co., Inc.,        
      8.875%, 03/15/11 (c) 275   299,063  
     
 
      1,538,513  
     
 
Forest & Paper Products—4.8%        
   Bowater Canada Finance,        
      7.95%, 11/15/11 (c) 750   791,911  
   Caraustar Industries, Inc.,        
      9.875%, 04/01/11 (c) 100   107,000  
   Georgia-Pacific Corp.:        
      8.875%, 02/01/10 275   321,750  
      9.50%, 12/01/11 (c) 500   618,750  
   Kappa Beheer BV,        
      10.625%, 07/15/09 1,235   1,302,925  
   Smurfit Capital Funding PLC,        
      7.50%, 11/20/25 1,760   1,751,200  
     
 
      4,893,536  
     
 
Gaming—6.0%        
   Majestic Star Casino LLC,        
      9.50%, 10/15/10 (c) 500   510,000  
   Mandalay Resort Group:        
      9.375%, 02/15/10 (c) 1,035   1,190,250  
      10.25%, 08/01/07 655   743,425  
   Sun International Hotels, Ltd.,        
      8.875%, 08/15/11 990   1,085,287  
   Venetian Casino Resort LLC,        
      11.00%, 06/15/10 1,275   1,475,812  
   Wheeling Island Gaming, Inc.,        
      10.125%, 12/15/09 405   428,288  
   Wynn Las Vegas LLC,        
      12.00%, 11/01/10 552   690,000  
     
 
      6,123,062  
     
 
Health Services—2.9%        
   Fresenius Medical Capital Trust,        
      7.875%, 02/01/08 1,120   1,215,200  
   Service Corp. International,        
      6.875%, 10/01/07 1,635   1,712,663  
     
 
      2,927,863  
     
 
Hotels—4.3%        
   Host Marriott L.P.,        
      9.25%, 10/01/07 (c) 1,285   1,439,200  
   ITT Corp.,        
      7.375%, 11/15/15 750   817,500  
   John Q. Hammons Hotels,        
      8.875%, 05/15/12 (c) 585   652,275  
   La Quinta Properties, Inc.,        
      8.875%, 03/15/11 (c) 775   868,000  
   MeriStar Hospitality Corp.:        
      9.00%, 01/15/08 295   308,275  
      9.125%, 01/15/11 (c) 270   282,825  
     
 
      4,368,075  
     
 

20

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
  Principal      
  Amount      
Description
 (000)   Value  
 
Lazard High Yield Portfolio (continued)        
Insurance—2.9%        
   Crum & Forster Holdings Corp.,        
      10.375%, 06/15/13
$
 1,100  
$
 1,174,250  
   Leucadia National Corp.,        
      7.00%, 08/15/13 950   945,250  
   Presidential Life Corp.,        
      7.875%, 02/15/09 865   865,000  
     
 
      2,984,500  
     
 
Leisure & Entertainment—0.7%        
   Intrawest Corp.,        
      7.50%, 10/15/13 (d) 300   310,875  
   Royal Caribbean Cruises, Ltd.,        
      8.00%, 05/15/10 (c) 400   450,500  
     
 
      761,375  
     
 
Media-Diversified—1.7%        
   Hollinger Participation Trust,        
      12.125%, 11/15/10 (d) 1,540   1,760,438  
     
 
Medical Products &        
      Services—2.0%        
   Medquest, Inc.,        
      11.875%, 08/15/12 (c) 635   723,900  
   NDCHealth Corp.,        
      10.50%, 12/01/12 (c) 760   830,300  
   Tenet Healthcare Corp.,        
      7.375%, 02/01/13 (c) 500   470,000  
     
 
      2,024,200  
     
 
Metals & Mining—2.3%        
   Arch Western Resources LLC,        
      6.75%, 07/01/13 (d) 675   725,625  
   Century Aluminum Co.,        
      7.50%, 08/15/14 (d) 225   236,813  
   Peabody Energy Corp.,        
      6.875%, 03/15/13 (c) 500   540,000  
   Wolverine Tube, Inc.,        
      7.375%, 08/01/08 (d) 890   881,100  
     
 
      2,383,538  
     
 
Printing & Publishing—3.3%        
   Dex Media East LLC,        
      12.125%, 11/15/12 (j) 195   242,775  
   Phoenix Color Corp.,        
      10.375%, 02/01/09 515   494,400  
   RH Donnelley Finance Corp.,        
      10.875%, 12/15/12 (d) 440   533,500  
   Sheridan Group, Inc.,        
      10.25%, 08/15/11 (d) 300   324,750  
   Vertis, Inc.,        
      10.875%, 06/15/09 (c) 765   822,375  
   Von Hoffmann Corp.,        
      10.25%, 03/15/09 915   1,015,650  
     
 
      3,433,450  
     
 
Real Estate—4.3%        
   AMR Real Estate Partners,        
      8.125%, 06/01/12 (d) 350   368,375  
   CB Richard Ellis Services, Inc.,        
      9.75%, 05/15/10 227   257,078  
   Forest City Enterprises, Inc.,        
      7.625%, 06/01/15 (c) 425   446,250  
   LNR Property Corp.,        
      7.25%, 10/15/13 1,350   1,471,500  
   Senior Housing Properties Trust,        
      7.875%, 04/15/15 275   298,375  
   Tanger Properties L.P.:        
      7.875%, 10/24/04 1,130   1,131,412  
      9.125%, 02/15/08 400   440,500  
     
 
      4,413,490  
     
 
Retail—4.0%        
   Rite Aid Corp.,        
      11.25%, 07/01/08 (c) 1,010   1,098,375  
   Saks, Inc.,        
      9.875%, 10/01/11 1,250   1,487,500  
   ShopKo Stores, Inc.,        
      9.25%, 03/15/22 910   923,650  
   The Jean Coutu Group (PJC), Inc.,        
      8.50%, 08/01/14 (c), (d) 625   620,312  
     
 
      4,129,837  
     
 
Shipping—1.1%        
   CP Ships, Ltd.,        
      10.375%, 07/15/12 990   1,133,550  
     
 
Steel—1.9%        
   Armco, Inc.,        
      9.00%, 09/15/07 450   453,375  
   International Steel Group, Inc.,        
      6.50%, 04/15/14 (d) 725   725,000  
   United States Steel Corp.,        
      9.75%, 05/15/10 294   336,630  
   United States Steel LLC,        
      10.75%, 08/01/08 364   429,520  
     
 
      1,944,525  
     
 

21

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
  Principal      
  Amount      
Description
 (000)   Value  
 
Lazard High Yield Portfolio (continued)        
Support Services—0.7%        
   Coinmach Corp.,        
      9.00%, 02/01/10
$
 640  
$
 664,000  
     
 
Telecommunications—5.6%        
   Alamosa Delaware, Inc.,        
      0.00%, 07/31/09 (i) 380   391,400  
   American Cellular Corp.,        
      10.00%, 08/01/11 (c) 625   506,250  
   FairPoint Communications, Inc.,        
      11.875%, 03/01/10 975   1,111,500  
   MCI, Inc.,        
      6.688%, 05/01/09 500   481,875  
   Nextel Communications, Inc.,        
      6.875%, 10/31/13 (c) 560   582,400  
   PanAmSat Corp.,        
      9.00%, 08/15/14 (d) 725   754,000  
   Qwest Services Corp.,        
      13.50%, 12/15/10 (d) 710   828,925  
   Rogers Wireless, Inc.,        
      9.625%, 05/01/11 (c) 1,000   1,115,000  
     
 
      5,771,350  
     
 
Tobacco—0.8%        
   DIMON, Inc.,        
      7.75%, 06/01/13 810   789,750  
     
 
Transportation—1.8%        
   Kansas City Southern Railway Co.,        
      7.50%, 06/15/09 610   623,725  
   Laidlaw International, Inc.,        
      10.75%, 06/15/11 1,075   1,226,844  
     
 
      1,850,569  
     
 
Utilities—4.3%        
   AES Corp.,        
      9.375%, 09/15/10 (c) 125   140,781  
   Alliant Energy Resources, Inc.,        
      9.75%, 01/15/13 500   648,744  
   Calpine Corp.,        
      7.875%, 04/01/08 (c) 770   519,750  
   Mission Energy Holding Co.,        
      13.50%, 07/15/08 (c) 500   632,500  
   MSW Energy Holdings LLC:        
      7.375%, 09/01/10 425   446,250  
      8.50%, 09/01/10 695   761,025  
   PG&E Corp.,        
      6.875%, 07/15/08 475   514,188  
   Reliant Energy Resources Corp.,        
      8.125%, 07/15/05 750   780,654  
     
 
      4,443,892  
     
 
Total Corporate Bonds        
   (Identified cost $87,894,666)    
$
 92,552,712  
     
 
  Shares      
 
     
Preferred Stocks—1.5%        
Broadcasting—0.9%        
   Paxson Communications Corp.,        
      14.25%, 11/15/06 (c) 117   886,275  
     
 
Telecommunications—0.6%        
   Alamosa Holdings, Inc. (c) 1,172   677,416  
     
 
Total Preferred Stocks        
   (Identified cost $1,135,066)     1,563,691  
     
 
Warrants—0.0%        
Cable Television—0.0%        
   Ono Finance PLC:        
      05/31/09 (a), (d), (g) 500   5  
      03/16/11 (a), (d), (g) 470   4  
     
 
      9  
     
 
Retail—0.0%        
   Travelcenters of America, Inc.:        
      05/01/09 (a), (d), (g) 810   8  
      05/01/09 (a), (g) 965   10  
     
 
      18  
     
 
Total Warrants        
   (Identified cost $74,226)     27  
     
 
 
Principal
     
 
Amount
     
 
(000)
   
 
     
Short-Term Investments—31.2%        
Repurchase Agreement—7.2%        
   State Street Bank and Trust Co.,        
      1.55%, 10/01/04, (Dated 09/30/04,        
      collateralized by $7,500,000        
      United States Treasury Note,        
      2.75%, 07/31/06, with a value        
      of $7,556,250)
$
 7,405   7,405,000  
     
 
Collateral for Securities        
      on Loan—24.0%        
   State Street Navigator Securities        
      Lending Prime Portfolio,        
      1.64% (e), (f) 24,616   24,615,627  
     
 
Total Short-Term Investments        
   (Identified cost $32,020,627)     32,020,627  
     
 
Total Investments        
   (Identified cost $121,124,585) (b) 122.9 %
$
 126,137,057  
Liabilities in Excess of Cash        
   and Other Assets (22.9 ) (23,538,822 )
 
 
 
Net Assets 100.0 %
$
 102,598,235  
 
 
 

22

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
Lazard High Yield Portfolio (concluded)

Forward Foreign Currency Contracts open at September 30, 2004:

Forward           U.S. $ Cost   U.S. $        
Foreign Currency   Expiration   Foreign   on Origination   Current   Unrealized   Unrealized
Purchase Contracts   Date   Currency   Date   Value   Appreciation   Depreciation
 
 
 
 
 
 
EUR
  12/15/04   327,625   $ 402,324   $ 406,774   $ 4,450   $ —
EUR
  12/15/04   1,013,862     1,234,752     1,258,794     24,042     —
EUR
  12/15/04   288,384     351,223     358,052     6,829     —
RUB
  01/20/05   2,724,900     93,000     92,324     —     676
RUB
  01/20/05   3,824,640   128,000   129,585   1,585   —
           
 
 
 
Total Forward Foreign Curreny Purchase Contracts   $ 2,209,299   $ 2,245,529   $ 36,906   $ 676
           
 
 
 
                                 
Forward
U.S. $ Cost
U.S. $
Foreign Currency
Expiration
Foreign
on Origination
Current
Unrealized
Unrealized
Sale Contracts
Date
Currency
Date
Value
Appreciation
Depreciation
 
 
 
 
 
 
EUR
  12/15/04   1,341,487   $ 1,644,636   $ 1,665,567   $ —   $ 20,931
EUR
  12/15/04   288,384   353,346   358,052   —   4,706
           
 
 
 
Total Forward Foreign Currency Sale Contracts   $ 1,997,982   $ 2,023,619     —   25,637
           
 
 
 
Gross unrealized appreciation/depreciation from Forward Foreign Currency Contracts   $ 36,906   $ 26,313
                       
 

23

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
(a)
  		 Non-income producing security.
(b)
  		 For federal income tax purposes, the aggregate cost, aggregate gross unrealized appreciation, aggregate gross unrealized depreciation and the net unrealized appreciation is as follows:
        Aggregate   Aggregate      
        Gross   Gross   Net  
    Aggregate   Unrealized   Unrealized   Unrealized  
Portfolio   Cost   Appreciation   Depreciation   Appreciation  
 
 
 
 
 
Equity   $ 146,529,208   $ 14,711,044   $ 2,895,003   $ 11,816,041  
Mid Cap     73,096,344     9,320,893     1,666,690     7,654,203  
Small Cap     538,840,520     71,110,250     22,476,203     48,634,047  
International Equity     1,534,071,764     192,160,160     47,225,393     144,934,767  
International Equity Select     13,119,351     2,094,782     389,815     1,704,967  
International Small Cap     565,209,899     200,687,110     6,772,742     193,914,368  
Emerging Markets     545,661,802     175,147,770     21,929,304     153,218,466  
Bond     44,634,883     277,296     131,123     146,173  
High Yield     121,124,585     8,563,294     3,550,822     5,012,472  
   
(c) Security or portion thereof is out on loan.
(d) Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.”
(e) Rate shown reflects 7 day yield as of September 30, 2004.
(f) Represents security purchased with cash collateral received for securities on loan.
(g) Date shown is the expiration date.
(h) Issue in default.
(i) Step up bonds are securities which increase the interest payment rate at a specified point in time. Rate shown reflects rate in effect at September 30, 2004, which may step up at a future date.
(j) Segregated security for when-issued purchases and/or forward foreign currency contracts.
(k) Bankrupt security valued at zero.
 
Security Abbreviations:
ADR —
American Depositary Receipt
GDR —
Global Depositary Receipt
TBA —
To Be Announced
     
Currency Abbreviations:
EUR — Euro
RUB — Russian Ruble

24

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
Portfolio holdings by industry, for those Portfolios previously presented by country:

  Lazard   Lazard   Lazard   Lazard  
  International   International   International   Emerging  
  Equity   Equity Select   Small Cap   Markets  
  Portfolio   Portfolio   Portfolio   Portfolio  
 
 
 
 
INDUSTRY                
Aerospace & Defense
—
 %
—
 %
—
 % 0.8 %
Apparel & Textiles —   —   6.4   1.9  
Automotive 2.8   —   5.2   1.8  
Banking 18.8   21.0   6.4   9.3  
Brewery 0.9   3.0   —   2.5  
Broadcasting —   —   —   1.1  
Building & Construction 1.5   —   5.9   1.7  
Business Services & Supplies —   —   7.8   —  
Chemicals 3.1   —   —   2.7  
Computer Services —   —   2.5   —  
Computers & Business Equipment —   —   —   5.0  
Cosmetics & Toiletries —   2.8   —   —  
Diversified 5.0   5.7   5.9   —  
Drugs & Health Care 8.6   14.1   1.4   2.3  
Electronics 3.1   2.8   2.0   7.5  
Financial Services 4.6   8.1   8.5   4.4  
Food & Beverages 3.2   9.3   1.7   1.9  
Forest & Paper Products 1.1   —   —   2.0  
Household Products & Home Furnishings —   —   3.6   3.3  
Industrial & Machinery —   —   2.0   —  
Insurance 5.5   3.9   2.9   3.5  
Leisure & Entertainment —   —   4.1   —  
Manufacturing —   —   2.6   —  
Medical Products & Services —   —   1.5   —  
Multimedia —   —   0.4   —  
Metals & Mining 0.9   —   —   10.7  
Oil & Gas 11.6   12.7   —   6.3  
Printing & Publishing 0.3   —   5.6   —  
Real Estate 1.2   —   4.8   —  
Restaurants —   —   0.8   —  
Retail 3.8   4.3   10.7   0.5  
Security Services —   —   1.8   —  
Semiconductors & Components 0.8   —   —   1.7  
Shipbuilding —   —   —   1.4  
Steel —   —   —   2.7  
Telecommunications 11.9   4.3   1.8   15.5  
Telecommunications Equipment —   4.2   —   —  
Tobacco 3.0   —   2.4   3.7  
Transportation 1.0   —   —   2.1  
Utilities 4.3   —   —   1.1  
 
 
 
 
 
Subtotal 97.0   96.2   98.7   97.4  
Repurchase Agreements 3.3   3.8   0.8   1.6  
Collateral for Securities on Loan 9.9   —   12.9   6.1  
 
 
 
 
 
Total Investments 110.2 % 100.0 % 112.4 % 105.1 %
 
 
 
 
 

25

 

 
The Lazard Funds, Inc.
Portfolios of Investments (continued)
September 30, 2004 (unaudited)
 
Valuation of Investments—Market values for equity securities listed on the New York Stock Exchange (“NYSE”), NASDAQ national market or other U.S. exchanges or markets are based on the closing market price on the principal exchange or market on which the security is traded, generally as of the close of regular trading on the NYSE (normally 4:00 p.m. Eastern time) on each valuation date; securities not traded on the valuation date are valued at the closing bid price. Any securities not listed, for which current over-the-counter market quotations or bids are readily available, are valued at the last quoted bid price or, if available, the mean of two such prices. Securities listed on foreign exchanges are valued at the last reported sales price, except as described below.

If events materially affecting the value of securities occur between the close of the exchange or market on which the security is principally traded and the time when a Portfolio’s net asset value is calculated, such securities will be valued at their fair values as determined by, or in accordance with procedures approved by, the Board of Directors. Fair valuing of foreign securities may be determined with the assistance of a pricing service, using correlations between the movement of prices of such securities and indices of domestic securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. The effect of using fair value pricing is that the net asset value of a Portfolio will be subject to the judgment of the Board of Directors or its designee instead of being determined by the market. Using a fair value pricing methodology to price securities may result in a value that is different from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ net asset values. Securities not traded on the valuation date are valued at the last quoted bid price, except as described below.

Securities and other assets for which current market quotations are not readily available are valued at fair value as determined in good faith in accordance with procedures approved by the Board of Directors.

Bonds and other fixed-income securities that are not exchange-traded are valued on the basis of prices provided by pricing services which are based primarily on institutional trading in similar groups of securities, or by using brokers’ quotations. Mortgage-backed securities issued by certain government-related organizations are valued using pricing services or brokers’ quotations based on a matrix system which considers such factors as other security prices, yields and maturities. Debt securities maturing in sixty days or less are valued at amortized cost, except where to do so would not accurately reflect their fair value, in which case such securities are valued at fair value as determined under the supervision of the Board of Directors.

Under these procedures, in the event that Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), determines that a significant event has occurred after the close of a market on which a foreign security is traded but before the close of regular trading on the NYSE, such that current market quotations for a security or securities are not readily available, a Valuation Committee of the Investment Manager will evaluate a variety of factors to determine the fair value of the affected securities. These factors include, but are not limited to, the type of security, the value of comparable securities, observations from financial institutions and relevant news events. Input from the Investment Manager’s analysts will also be considered.

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is also available on the Fund’s website at www.LazardNet.com as well as on the Securities and Exchange Commission’s website at www.sec.gov.

26


   
Item 2. Controls and Procedures.

(a)     The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-Q is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-Q is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)     There were no changes to the Registrant's internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

 

   
Item 3. Exhibits.

(a)     Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto authorized.

THE LAZARD FUNDS, INC.
   
By: /s/ Charles Carroll
 
 
  Charles Carroll
  Chief Executive Officer
   
Date: November 23, 2004

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By: /s/ Charles Carroll
 
 
  Charles Carroll
  Chief Executive Officer
   
Date: November 23, 2004
   
By: /s/ Stephen St. Clair
 
 
  Stephen St. Clair
  Chief Financial Officer
   
Date: November 23, 2004