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

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT 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:	12/31/09

ITEM 1. REPORTS TO STOCKHOLDERS.

December 31, 2009

Lazard Funds Annual Report

U.S. Equity

Lazard U.S. Equity Value Portfolio

Lazard U.S. Strategic Equity Portfolio

Lazard U.S. Mid Cap Equity Portfolio

Lazard U.S. Small-Mid Cap Equity Portfolio

International Equity

Lazard International Equity Portfolio

Lazard International Equity Select Portfolio

Lazard International Strategic Equity Portfolio

Lazard International Small Cap Equity Portfolio

Global Equity

Lazard Global Listed Infrastructure Portfolio

Emerging Markets

Lazard Emerging Markets Equity Portfolio

Lazard Developing Markets Equity Portfolio

Fixed Income

Lazard U.S. High Yield Portfolio

Capital Allocator

Lazard Capital Allocator Opportunistic

    Strategies Portfolio

Lazard Funds

   The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
11	Performance Overviews
23	Information About Your Portfolio’s Expenses
26	Portfolio Holdings Presented by Sector
27	Portfolio Holdings Presented by Credit Rating
28	Portfolios of Investments
28	Lazard U.S. Equity Value Portfolio
30	Lazard U.S. Strategic Equity Portfolio
32	Lazard U.S. Mid Cap Equity Portfolio
34	Lazard U.S. Small-Mid Cap Equity Portfolio
36	Lazard International Equity Portfolio
38	Lazard International Equity Select Portfolio
40	Lazard International Strategic Equity Portfolio
42	Lazard International Small Cap Equity Portfolio
44	Lazard Global Listed Infrastructure Portfolio
45	Lazard Emerging Markets Equity Portfolio
47	Lazard Developing Markets Equity Portfolio
49	Lazard U.S. High Yield Portfolio
54	Lazard Capital Allocator Opportunistic Strategies Portfolio
55	Notes to Portfolios of Investments
58	Statements of Assets and Liabilities
62	Statements of Operations
66	Statements of Changes in Net Assets
73	Financial Highlights
86	Notes to Financial Statements
96	Report of Independent Registered Public Accounting Firm
97	Board of Directors and Officers Information
99	Other Information
104	Tax Information

Please consider a Portfolio’s investment objectives, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc., you may obtain a prospectus or summary prospectus, if available, by calling 800-823-6300, or online, at www.LazardNet.com. Read the prospectus carefully before you invest. The prospectus contains investment objectives, risks, charges, expenses and other information about Portfolios of The Lazard Funds, Inc., which may not be detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

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   The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder:

The past 12 months were a period of both extraordinary challenges and opportunities. What began as a panic-driven environment quickly morphed into a dramatic rebound, followed later by a return to relative normalcy. The S&P 500^® Index rose over 60% by the end of the year following the lows reached in March 2009, although as of the end of 2009 it was still significantly below the highs it reached in October of 2007. Many long-held beliefs regarding the U.S. dollar, emerging versus developed markets, and sovereign credit quality were significantly changed during the year. The only certainty throughout 2009 was volatility.

At Lazard Asset Management, we are optimistic about the current environment. We believe that a period of dispersion, or a widening gap among winning, merely surviving, and failing business models, has only just begun in the markets, and that we will continue to see significant and growing differentiation. The opportunities for active managers within this dispersion are both high and increasing.

While Lazard was not immune to the effects of the dramatic downturn and subsequent recovery, our performance throughout has been relatively strong. The crisis has proven that a short-term strategy is no substitute for sustainable actions. As such, Lazard’s focus remains on fundamental, active management. We remain confident that the strength of this style will continue in a variety of market conditions.

In conclusion, we would like to express our deepest gratitude to you as shareholders. We sincerely appreciate your continued confidence in our management capabilities, especially during these volatile times. We are honored that you have turned to Lazard for your investment needs.

Sincerely,

Lazard Asset Management LLC

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   The Lazard Funds, Inc. Investment Overviews

U.S. Equities: An Evolving Economy
Equities experienced a tremendous rally since the lows reached in March of 2009, as the economy recovered from one of the worst economic and financial crises in recent history. The events of 2009 largely eliminated the short-term risk of systemic failure that we faced only a year ago. The U.S. Federal Reserve’s near-zero interest rate policy, combined with a fiscal deficit of approximately 10% of U.S. GDP, transformed the economic freefall to moderate growth quite quickly. This, in turn, encouraged investors to buy into riskier assets. The economy appeared to be pulling out of its recession, as it returned to growth following four consecutive quarters of contraction. The housing market also showed further signs of stabilization, as the U.S. Government extended its tax incentive program and maintained low borrowing costs for homebuyers. However, the recovery in consumer activity, a primary driver of the economy in the United States, remained uncertain amid the high unemployment rate. A deceleration of consumer credit volumes also pointed to the continued deleveraging of U.S. consumers.

By sector, materials, information technology, energy, and consumer discretionary performed well on the back of an improving economic outlook. A strong recovery in commodity prices boosted confidence in many commodity producers. The information technology sector was a consistent performer throughout the year and the overall best performer for the period, as strong cash positions and profitability in many technology companies attracted investors in the midst of the economic downturn earlier in the year. In addition, computer hardware and semiconductor stocks rebounded due to the surprisingly resilient global personal computer market. Meanwhile, the consumer staples and utilities sectors underperformed, as investors rotated away from the more defensive sectors amid the improving economic outlook. Financial stocks rebounded sharply from their March lows, but lagged overall for the year, as the expected arrival of more normalized earnings levels for banks was pushed further back amid continued deterioration in the credit markets.

International Equities: Unprecedented Intervention Leads to Stabilization
International equity markets enjoyed a strong recovery in 2009, returning over 30% as measured by the Morgan Stanley Capital International (MSCI^®) Europe, Australasia and Far East^® Index (the EAFE Index). In the beginning of the

year, global stocks fell sharply as the world responded to the collapse of debt markets, the rapid fall in economic activity, and the prospect of a prolonged deflationary squeeze on asset values. In response, governments and central banks around the world applied stimulus, including aggressive monetary and fiscal policies, which culminated in the start of quantitative easing in March. These unprecedented actions succeeded in stabilizing asset prices, which set the stage for a sharp rebound in share prices, as companies could once again be valued in a normalized economic environment rather than in an extremely negative scenario.

While cyclical stocks generally performed well in 2009, those perceived as exposed to demand from emerging markets were especially strong, including mining, steel, chemical, and capital goods companies. Branded consumer companies also benefited from this trend, keeping pace with the broad markets despite strong relative performance for their defensive characteristics in 2008. Other defensive stocks did not do as well, as companies in the telecom services, health care, and utilities sectors lagged. Bank stocks experienced a volatile year: In the first quarter, they collapsed to market lows on fears of nationalization, then rebounded strongly near the end of the first quarter and through the third quarter, as these concerns eased due to government intervention and guarantees. The fourth quarter saw renewed weakness in banks, as markets began to worry once again about the removal of stimulus measures.

Emerging Markets Equities: Strong Fundamentals
During the first quarter of 2009, shares in the developing world experienced periods of considerable weakness caused by pessimistic sentiment over the outlook for global financial institutions. This period was followed by a significant rebound toward the end of the first quarter, as shares rose due to value hunting by investors, who were following some signs of improvement in the credit markets. The MSCI Emerging Markets Index (the EM Index) finished the first quarter almost flat, up by just under 1%. Stocks in Latin America performed considerably better than those in Asia, and especially better than markets in Eastern Europe, the Middle East, and Africa. Ongoing weakness and range constrained price action continued in commodity prices, as crude oil prices traded between $30 and $55 per barrel.

Emerging markets equities continued the extraordinary recovery in the second quarter of 2009. Although stocks in

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the developing world experienced a respite in June, they rose very strongly in both April and May, as credit and global equity markets showed signs of improvement. The EM Index increased by 33% over the quarter, as shares of companies in Eastern Europe, the Middle East, Africa, and Latin America performed better than those in Asia. Strong price action occurred in many commodities, and crude oil prices reached more than $70 per barrel by quarter end.

The impressive recovery continued through the third quarter of 2009. Although growth in the developing world slowed in August, it rose very strongly in both July and September, as credit and global equity markets, as well as investor sentiment, demonstrated significant signs of improvement. The EM Index increased by almost 21% over the third quarter, as shares of companies in Eastern Europe and in Latin America performed better than those in Asia. Remarkably, every sector and every country represented in the EM Index, with the exception of Morocco, rose over the quarter. Stable prices continued in many commodities, and crude oil prices remained at around $70 per barrel over the quarter.

Emerging markets equities finished the remarkably strong year positively, as the EM Index ended the fourth quarter up almost 9%. Shares of companies in Latin America performed the strongest, although markets in Eastern Europe also rose, while Asian stocks lagged. For the year as a whole, the EM Index increased by almost 79%, with Latin American equities significantly outperforming shares in Eastern Europe, the Middle East, Africa, and in Asia.

By sector, consumer discretionary, materials, and information technology outperformed the EM Index. The utilities, health care, industrials, and telecom services sectors were the weakest performers over the year.

High Yield Fixed Income: Exceptional Rally
High-yield performance in 2009 was exceptional by any measure. The high yield market materially outperformed U.S. Treasuries, investment-grade corporate bonds, and the U.S. equity markets in 2009. Lower-quality high yield performed best in 2009, as investor confidence continued to improve from the banking crisis of late 2008. Over the course of 2009, as high-yield securities were marked back up in price, market spreads tightened by approximately 1,170 basis points. The CCC sector tightened the most, moving in by 2,221 basis points, while the BB sector tightened by 825

basis points. The CCC sector credit spread finished the year narrower than its long-term average, while the BB sector spread is modestly wider than its long-term average. High-yield market flows were very healthy during the year. U.S. high-yield bond issuance was a robust $127 billion in 2009, as compared to $56 billion in 2008. Mutual fund inflows of approximately $30 billion were also strong, helping fuel the market rally. While default rates were significant, they did not derail market performance.

Lazard U.S. Equity Value Portfolio
For the year ended December 31, 2009, the Lazard U.S. Equity Value Portfolio’s Institutional Shares posted a total return of 24.81%, while Open Shares posted a total return of 24.49%, as compared with the 19.69% return for the Russell 1000 Value^® Index.

During the year, the Portfolio benefited from stock selection in the energy sector. Shares of Newfield Exploration increased dramatically over the period, benefiting from its success in unconventional natural gas exploration. The company was further boosted by Exxon Mobil’s acquisition of XTO Energy, which increased interest in the sector as a whole. A position in Halliburton also benefited performance due to the company’s broad-based market share gains and anticipated increase in capital expenditures by its customers in 2010.

Stock selection in the consumer staples sector also added to returns, as positions in U.S. tobacco makers Reynolds American and Altria Group performed very well for the year. Both companies started 2009 with dividend yields in excess of 9% and have performed well, as concerns over an increase in the federal excise tax on tobacco products have abated.

Stock selection in the health care sector also helped relative returns, as Medtronic outperformed during the year. The company was able to deliver on operating leverage forecasts and achieved its revenue targets. Meanwhile, visibility on multiple new product cycles has improved the company’s revenue growth outlook.

Conversely, stock selection in the financials sector detracted from returns, as positions in diversified financials such as Bank of New York Mellon and Bank of America underperformed due to concerns regarding the delayed arrival of more normalized earnings levels for banks.

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The Portfolio’s underweight position and stock selection in the consumer discretionary sector also detracted from returns, as shares of Comcast lagged earlier in the year due to concerns over its potential acquisition of NBC Universal. While the stock rebounded sharply in December following the announcement of a deal, it was not enough to offset its earlier poor performance.

Lazard U.S. Strategic Equity Portfolio
For the year ended December 31, 2009, the Lazard U.S. Strategic Equity Portfolio’s Institutional Shares posted a total return of 28.12%, while Open Shares posted a total return of 27.71%, as compared with the 26.46% return for the S&P 500^® Index.

Stock selection in the energy sector helped the Portfolio’s performance during 2009. Coal producer Massey Energy performed very well, rebounding sharply from its March lows after reporting better-than-expected earnings results due to aggressive cost cutting and closings of higher-cost mines amid the weaker demand for coal. Exports of metallurgic coal, which is used in steelmaking, recovered in the fourth quarter as steelmakers began restocking inventories, which also helped Massey Energy’s performance. Holdings in energy exploration and production companies, such as EOG Resources and Apache, helped performance as well. A relatively underweight position in Exxon Mobil also boosted performance, as the company’s shares lagged considerably in 2009. We subsequently sold the position in Exxon Mobil during the year.

The Portfolio also benefited from an overweight position and stock selection in the materials sector, as positions such as Air Products & Chemicals and Freeport-McMoRan performed well. Air Products & Chemicals outperformed during 2009 due to earnings that consistently exceeded market expectations and a turnaround in its electronics business. Freeport-McMoRan rose sharply as copper prices rebounded from multi-year lows. We sold the position during the first quarter of 2009 as the stock reached our valuation target.

Stock selection in the industrials sector helped performance during 2009. Shares of Corrections Corp. of America, an owner and operator of corrections facilities, were strong due to increasing outsourcing trends and a large equity investment by a strategic buyer.

The Portfolio benefited from an underweight position in the financials sector as well, as it lagged the overall market in 2009.

Conversely, stock selection in the consumer discretionary sector detracted from returns for the year. As previously mentioned, shares of Comcast lagged for the year due to concerns over its potential acquisition of NBC Universal.

Stock selection in the information technology sector also detracted from relative returns. The Portfolio did not hold positions in some technology hardware and equipment companies that performed strongly during 2009, in particular Apple.

Lazard U.S. Mid Cap Equity Portfolio
For the year ended December 31, 2009, the Lazard U.S. Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 38.49%, while Open Shares posted a total return of 38.26%, as compared with the 40.48% return for the Russell Midcap^® Index.

During the year, the Portfolio benefited from stock selection in the health care sector, as positions in Hospira, Life Technologies, and Warner Chilcott consistently exceeded earnings expectations during the year. Hospira, a specialty pharmaceuticals and medication delivery company, benefited from its management’s multi-year cost reduction plan, which increased its margins. Life Technologies also benefited from cost savings efforts as a result of merger-related synergies, and has experienced accelerated revenue growth. In addition to strong earnings during the year, Warner Chilcott rose sharply after announcing it would purchase Procter & Gamble’s global pharmaceuticals business.

The Portfolio’s underweight position and stock selection in the financials sector contributed to performance. Waddell & Reed Financial outperformed during the year, as the asset manager bested its peers in the difficult environment due to strong performance across key products and a strong distribution network. The company’s third quarter earnings were better than expected, benefiting from the management team’s operational improvement plan and a sharp rebound in equity markets. We exited the position in Waddell & Reed Financial during 2009. The Portfolio benefited from an opportunistic purchase of PNC Financial Services Group as well, after its sharp decline in the beginning of the year. We sold the position during 2009 as it reached our valuation target.

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Conversely, stock selection in the information technology sector detracted from returns, as wholesale technology distributor Ingram Micro, and software companies such as NeuStar and Symantec, slightly lagged. A low exposure to the semiconductors and semiconductor equipment segment also detracted from performance, as it was the best performing group in the sector due to an improving economic outlook.

Stock selection in the consumer staples sector hurt returns, as shares of Molson Coors Brewing declined, due to concerns over price competition in Canada, despite its positive earnings for the third quarter.

Stock selection in the industrials sector also detracted from returns, as waste collection and disposal company Republic Services lagged due to continued soft volumes in both commercial and residential waste removal. However, the company’s pricing currently remains solid.

Lazard U.S. Small-Mid Cap Equity Portfolio
For the year ended December 31, 2009, the Lazard U.S. Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 55.47%, while Open Shares posted a total return of 54.96%, as compared with the 34.39% return for the Russell 2000/2500 Linked Index (the Linked Index).¹

The Portfolio’s main performance drivers for the year included stock selection in the financials, industrials, information technology, consumer discretionary, and health care sectors. These were among the largest sectors comprising the Linked Index and thus provided the most diverse investment opportunities. Stock selection in the energy and telecom services sectors slightly detracted from performance for the year.

While the financials sector performed poorly overall, it remained one of the best sources of returns for the Portfolio. The Portfolio’s investments in enduring companies, such as Wintrust Financial, East West Bancorp, and PacWest Bancorp, added significantly to relative performance. We later sold our position in East West Bancorp. In addition, investments in the insurance, diversified financials, and real estate segments of the sector also added to returns.

Stock selection in the industrials sector also contributed to relative returns. Companies in the capital goods segment performed well, as business activity increased investors’

expectations for recovery. The Portfolio’s positions in Mid-dleby and Orion Marine Group were the two best performers. We sold the position in Orion Marine Group during 2009.

The Portfolio benefited from strong results in its consumer discretionary holdings as well. Stock prices in the sector generally rallied on better-than-expected earnings reports as the economic recovery began to take hold. Our focus on companies that we believe can gain market share and that have the potential to benefit from the improving economic environment added to performance over the year.

The Portfolio’s strong relative performance in the information technology sector was driven by holdings in hardware and equipment companies that generally benefited from strong market positioning and the pickup in global technology demand and spending.

Stock selection in the telecom services sector detracted from the Portfolio’s performance over the year. Positions in two wireless telecommunications companies, Leap Wireless International and MetroPCS Communications, both posted disappointing earnings as subscriber growth slowed. We exited both positions during 2009, as the investment theses were no longer valid.

Lazard International Equity Portfolio
For the year ended December 31, 2009, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of 25.19%, while Open Shares posted a total return of 24.91%, as compared with the 31.78% return for the EAFE Index.

The biggest drag on the Portfolio’s performance over the year was a low exposure to the materials sector, which benefited from the improving economic environment as well as demand for commodities from emerging markets.

The Portfolio’s high exposure to, and stock selection in, telecom services also detracted from returns, as investors rotated into more cyclical sectors. Within the sector, positions in KDDI, Telus, and Vodafone Group hurt performance.

In contrast, the Portfolio benefited from stock selection in the information technology sector, as Ericsson, Hoya, and Canon each contributed to relative returns. We exited the position in Ericsson over the year.

6  Annual Report

A low exposure to the utilities sector also helped performance, as the sector was hurt by concerns about overcapacity in the power generation market.

Lazard International Equity Select Portfolio
For the year ended December 31, 2009, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of 20.86%, while Open Shares posted a total return of 20.49%, as compared with the 31.78% return of the EAFE Index.

The Portfolio’s high exposure to, and stock selection in, the health care sector detracted from returns over the year, as investors rotated into more cyclical sectors.

Stock selection in the financials sector also hurt returns. The sector was hurt by concerns about the asset quality of large banks and possible regulatory changes, and several of our positions in the bank segment declined over the year.

A low exposure to the materials sector, which benefited from the improving economic environment and emerging market demand, hurt relative performance over the year as well.

In contrast, the Portfolio benefited from a low exposure to the utilities sector, which was hurt by concerns about over-capacity in the power generation market.

A high exposure to the information technology sector also helped performance, as strong cash positions and profitability in many technology companies attracted investors in the midst of the economic downturn earlier in the year.

Stock selection in the telecom services sector benefited returns due to a position in Telekomunikasi Indonesia, which was up impressively over the period.

Lazard International Strategic Equity Portfolio
For the year ended December 31, 2009, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of 27.76%, while Open Shares posted a total return of 27.38%, as compared with the 31.78% return for the EAFE Index.

The biggest drag on the Portfolio’s performance over the year was a low exposure to the most cyclical materials stocks, especially in the mining, steel, and chemicals industries.

Stock selection in the consumer discretionary sector also detracted from returns, as a position in Greek gambling company OPAP declined due to regulatory changes. We exited the position in OPAP during the fourth quarter of 2009.

Stock selection in the financials sector, particularly in the diversified financials and real estate segments, hurt relative performance as well. Positions in Lloyds Banking Group and Barclays were hit by regulatory and capital fears, while Daito Trust Construction struggled to overcome a sluggish domestic demand environment in Japan. We subsequently sold our position in Daito Trust Construction during 2009.

In contrast, stock selection in the consumer staples helped returns over the year. The material changes at both Anheuser-Busch InBev and at Unilever began to deliver encouraging results, lifting the companies’ share prices.

Stock selection in the telecom services sector also helped the Portfolio’s returns, as a position in BT Group outperformed over the year. We exited the position in BT Group during 2009 as it reached our valuation target.

Lazard International Small Cap Equity Portfolio
For the year ended December 31, 2009, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of 39.17%, while Open Shares posted a total return of 39.00%, as compared with the 46.78% return for the MSCI EAFE Small Cap Index.

For the year, stock selection in the information technology sector detracted from relative performance. A position in Neopost, a French postal metering company, underperformed due to its defensive business model, as investors cycled into riskier assets during the strong rally that began in March of 2009. Shares of Konami, which develops and sells entertainment software, underperformed owing to weak performance in its fitness club division, as membership dropped with the slowing economy in early 2009.

The Portfolio’s stock selection in the consumer discretionary sector also hurt performance. Sankyo, which develops, manufactures, and sells pachinko machines and related parts, underperformed due to lower sales for the second half of the year. A position in Dignity, a U.K.-based operator of funeral homes, also hurt returns within the sector, as investors moved toward riskier equities amid optimism for the economic recovery.

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Conversely, stock selection in the industrials sector helped performance during 2009. Charter International, a U.K.-based manufacturer of welding equipment and consumables, outperformed due to cost-cutting measures that finished ahead of targets and the return of demand for its products. Shares of Indutrade, a producer of industrial engineering and equipment, flow technology, industrial components, and special products, performed well over the year as its end-markets stabilized. In addition, the company resumed its acquisition activities, which has traditionally been a source of value creation for shareholders.

Stock selection in the health care sector also benefited performance, as shares of Swedish medical technology provider Elekta appreciated. Proposed cuts to U.S. reimbursement for procedures on equipment produced by Elekta were much lower than expected, and the company continued to show its technology leadership over the year. A position in Healthcare Locums, a health care recruitment business, benefited returns as well, as the company’s earnings exceeded analysts targets.

Lazard Emerging Markets Equity Portfolio
For the year ended December 31, 2009, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of 69.82%, while Open Shares posted a total return of 69.14%, as compared with the 78.51% return for the EM Index.

Stock selection in the financials sector helped the Portfolio’s performance over the year, as a position in Banco do Brasil, a Brazilian bank, performed well as loan growth recovered, asset quality deterioration seemed to approach a bottom, and the local currency strengthened.

Stock selection in the energy sector helped returns over the year, as shares of LUKOIL, a Russian oil and gas company, benefited from rising oil prices.

The Portfolio’s stock selection in the telecom services sector also benefited performance. Shares of Mobile TeleSystems, a Russian telecommunications services company, appreciated due to ruble stabilization and investors’ focus on the company’s cash flow generation.

An underweight position in China and an overweight exposure to Indonesia added to the Portfolio’s returns over the year as well.

In contrast, stock selection in the information technology sector detracted from relative performance for the year, as shares of Satyam Computer Services, an Indian software company, were weak due to investor concerns over an alleged fraud. We subsequently sold the position in Satyam.

Stock selection in Brazil also hurt returns for the year. The Portfolio’s position in TAM, a Brazilian airline company, was weak due to increasing competition and the negative effect of fuel hedges. We exited the position in TAM during 2009.

Stock selection in the consumer discretionary sector hurt performance over 2009 as well.

Lazard Developing Markets Equity Portfolio
For the year ended December 31, 2009, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of 108.53%, while Open Shares posted a total return of 108.17%, as compared with the 78.51% return for the EM Index.

For the year, a larger-than-index position and stock selection in the energy sector significantly contributed to the Portfolio’s relative performance. Shares of Eurasia Drilling, a Russian energy services company, performed well on the back of strong profitability, stable margins, and a solid outlook into next year. TMK, a Russian steel pipe producer, performed well due to a recovering average sales price as well as the successful refinancing of some of its debt. We subsequently exited the position in TMK during 2009.

A higher-than-index exposure and stock selection in the consumer discretionary sector also benefited returns for 2009. Cyrela Brazil Realty, a Brazilian real estate development and construction firm, performed well as early strength in affordable housing broadened into a strong recovery in middle- and upper-income home sales. Anta Sports Products, a China-based sportswear manufacturer and retailer, outperformed due to strong sales, a rebound in Chinese consumption, and market share gains. We exited the position in Anta Sports Products during the year.

Additionally, stock selection in Brazil and Russia, and a larger-than-index exposure to Russia, helped returns over the year.

Conversely, a lower-than-index exposure to the information technology sector subtracted value over the year.

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Stock selection in the health care sector also detracted from returns. A position in China Medical Technologies lagged, as investors focused on the company’s increasing competition. We subsequently exited the position in China Medical Technologies.

Lazard U.S. High Yield Portfolio
For the year ended December 31, 2009, the Lazard U.S. High Yield Portfolio’s Institutional Shares posted a total return of 34.66%, while Open Shares posted a total return of 34.40%, as compared with the 57.51% return for the Merrill Lynch High Yield Master II^® Index (the High Yield Index).

The Portfolio’s higher-quality style significantly lagged the High Yield Index in 2009, as lower-quality securities were written back up in price. In 2009, the CCC and below quality sector returned 96.8% and boosted the High Yield Index return by more than 11%. The higher-quality BB sector returned 45.2%. Performance was helped by overweight positions in the building materials and gaming/hotel sectors and by an underweight position in electric utilities. Security selection also added to performance. Underweight positions in the bank, finance, and insurance sectors detracted from performance. The Portfolio’s underweight exposure to automotive and technology-related securities and to lower-quality securities detracted from performance in 2009 as well. Our bias is to higher-quality holdings, industry sectors that generally have transparent fundamentals, and to larger issues that are well followed by the market. Even though the Portfolio lagged the High Yield Index, we are pleased with the absolute return relative to the risk taken.

Lazard Capital Allocator Opportunistic Strategies Portfolio
For the year ended December 31, 2009, the Lazard Capital Allocator Opportunistic Strategies (LCAOS) Portfolio’s Institutional Shares returned 21.21%, while Open Shares posted a total return of 20.71%. The benchmark returns for the year ended December 31, 2009 were 29.99% for the MSCI World^® Index and 22.92% for Global Market Exposure Index.²

Over the year, the Portfolio’s returns were driven predominantly by exposures to the Contrarian and Discounted Assets categories. Investments in the Thematic category were mixed, while holdings in the Diversifying Assets category detracted from performance.

Thematic investments were about 34% of the overall Portfolio at year-end. Investments in this category were reduced during the year, as we took profits on positions that we felt were fully valued. Overall, this sector was slightly accretive to relative returns. Within the Thematic category, investments in Brazil and Asia ex-Japan were the best performers. Positions in the agribusiness theme and select energy positions, including oil services companies, also aided performance. However, these gains were somewhat offset by weakness in other thematic investments. The natural gas theme was one of the largest detractors, as the high supply levels kept natural gas prices low. Water infrastructure was also weak, as was the Portfolio’s investment in a Japanese exchange-traded fund (ETF). We eliminated the position in the Japanese ETF during the year.

The Diversifying Assets category was the largest allocation in the Portfolio, ending the year at approximately 47% of assets. Diversifying Assets was also the weakest area of the Portfolio. As markets rose throughout the second and third quarters of 2009, we generally added to this category as we took profits across other investments. Several of these investments, which were made in an effort to provide diversification away from equities, lagged as markets spiked during the year. Many fixed-income vehicles did not supply the benefits we anticipated throughout the year, so we began to diversify the holdings within the category. Concerns about sovereign risk and weakness in U.S. Treasuries led us to invest in gold, volatility, and consumer staples ETFs as alternative ways to gain diversification. Consumer staples and gold ETFs added to returns, while positions in volatility and fixed-income securities were a drag on performance.

The Contrarian category represented approximately 12% of the overall Portfolio at year-end and added to performance for the period. The allocation to this segment was previously higher, but we took profits on some of our global materials and steel investments as they rebounded due to the economic recovery.

The Discounted Assets category performed the best for the year, but it was the smallest allocation in the Portfolio, ending the year at just over 3% of assets. Outperformance in the category was largely driven by investments in fixed-income closed-end funds. The strong performance in the credit markets propelled these funds, leading to considerable returns in this space.

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Notes to Investment Overviews:

All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolios may have been waived or reimbursed by the Fund’s Investment Manager, Lazard Asset Management LLC (the “Investment Manager”), or Administrator, State Street Bank and Trust Company (“State Street”); without such waiver/reimbursement of expenses, the Portfolios’ returns would have been lower. Past performance is not indicative, or a guarantee, of future results.

The performance data of the indices and other market data have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. These indices are unmanaged, have no fees or costs and are not available for investment.

The views of the Fund’s management and the portfolio holdings described in this report are as of December 31, 2009; these views and portfolio holdings may have changed subsequent to this date. Nothing herein should be construed as a recommendation to buy, sell, or hold a particular security. There is no assurance that the securities discussed herein will remain in each Portfolio at the time you receive this report, or that securities sold will not have been repurchased. The specific portfolio securities may in aggregate represent only a small percentage of each Portfolio’s holdings. It should not be assumed that investments in the securities identified and discussed were, or will be, profitable, or that the investment decisions we make in the future will be profitable, or equal the investment performance of the securities discussed herein.

The views and opinions expressed are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendations for, any person. There can be no guarantee as to the accuracy of the outlooks for markets, sectors and securities as discussed herein. You should read the Fund’s prospectus for a more detailed discussion of each Portfolio’s investment objectives, strategies, risks and fees.

1	The Russell 2000/2500 Linked Index is an index created by the Portfolio’s Investment Manager, which links the performance of the Russell 2000 Index for all periods prior to August 25, 2008 and the Russell 2500 Index for all periods thereafter.
2	The Global Market Exposure Index is a blended index constructed by the Portfolio’s Investment Manager and is comprised of 36% Barclays Capital U.S. Aggregate Bond Index, 19.5% S&P 500 Index, 15% MSCI Europe Index, 9% MSCI Pacific Index, 6% MSCI Emerging Markets Index, 6% S&P MidCap 400 Index, 4.5% S&P SmallCap 600 Index, and 4% Three Month London Interbank Offered Rate (LIBOR).

10  Annual Report

   The Lazard Funds, Inc. Performance Overviews

Lazard U.S. Equity Value Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard U.S. Equity Value Portfolio and Russell 1000^® Value Index*

Average Annual Total Returns* Periods Ended December 31, 2009
	One Year	Since Inception	†
Institutional Shares**	24.81%	0.44	%
Open Shares**	24.49%	0.18	%
Russell 1000 Value Index	19.69%	(1.59	)%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The Russell 1000 Value Index measures the performance of those Russell 1000 companies (the 1,000 largest companies in the Russell 3000® Index, which consists of the 3,000 largest U.S. companies by capitalization) with lower price-to-book ratios and lower forecasted growth values. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was September 30, 2005.

Annual Report  11

Lazard U.S. Strategic Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard U.S. Strategic Equity Portfolio and S&P 500^® Index*

Average Annual Total Returns* Periods Ended December 31, 2009
	One Year		Five Years		Since Inception		†
Institutional Shares**		28.12%		0.46%	0.46	%
Open Shares**		27.71%		0.18%	0.18	%
S&P 500 Index		26.46%		0.42%	0.39	%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The S&P 500 Index is a market capitalization-weighted index of 500 common stocks, designed to measure performance of the broad domestic economy through changes in the aggregate market value of these stocks, which represent all major industries. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was December 30, 2004.

12  Annual Report

Lazard U.S. Mid Cap Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard U.S. Mid Cap Equity Portfolio and Russell Midcap^® Index*

Average Annual Total Returns* Year Ended December 31, 2009
	One Year		Five Years		Ten Years
Institutional Shares**		38.49%		0.73%		7.05%
Open Shares**		38.26%		0.46%		6.74%
Russell Midcap Index		40.48%		2.43%		4.98%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The Russell Midcap Index measures the performance of the 800 smallest companies in the Russell 1000 Index (which consists of the 1,000 largest U.S. companies by capitalization). The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.

Annual Report  13

Lazard U.S. Small-Mid Cap Equity Portfolio

Comparison of Changes in Value
of $10,000 Investment in the
Institutional Shares of Lazard
U.S. Small-Mid Cap Equity Portfolio,
Russell 2500^® Index and
Russell 2000/2500 Linked Index*

Average Annual Total Returns*
Year Ended December 31, 2009

	One Year	Five Years	Ten Years
Institutional Shares**	55.47%	3.11%	7.67%
Open Shares**	54.96%	2.77%	7.39%
Russell 2500 Index	34.39%	1.58%	4.91%
Russell 2000/2500 Linked Index	34.39%	1.10%	3.82%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The Russell 2500 Index is comprised of the 2,500 smallest U.S. companies included in the Russell 3000 Index (which consists of the 3,000 largest U.S. companies by capitalization). The Russell 2000/2500 Linked Index is an index created by the Portfolio’s Investment Manager, which links the performance of the Russell 2000® Index for all periods prior to August 25, 2008 and the Russell 2500 Index for all periods thereafter. The Russell 2000 Index is comprised of the 2,000 smallest U.S. companies included in the Russell 3000 Index. The indices are unmanaged, have no fees or costs and are not available for investment.
	The Portfolio was previously known as Lazard U.S. Small Cap Equity Portfolio. As of August 25, 2008, the Portfolio changed its name to Lazard U.S. Small-Mid Cap Equity Portfolio and changed its investment strategy to invest in equity securities of small-mid cap U.S. companies.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.

14Annual Report

Lazard International Equity Portfolio

Comparison of Changes in Value of $10,000 Investment
in the Institutional Shares of Lazard International Equity
Portfolio and Morgan Stanley Capital International
(MSCI^®) Europe, Australasia and Far East (EAFE^®)
Index*

Average Annual Total Returns*
Year Ended December 31, 2009

	One Year	Five Years	Ten Years
Institutional Shares**	25.19%	3.41%	0.68%
Open Shares**	24.91%	3.10%	0.39%
MSCI EAFE Index	31.78%	3.54%	1.17%

*	All returns reflect reinvestment of all dividends and distributions, if any.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The MSCI EAFE Index is a broadly diversified international index comprised of equity securities of approximately 1,000 companies located outside the United States. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.

Annual Report  15

Lazard International Equity Select Portfolio

Comparison of Changes in Value of $10,000 Investment
in the Institutional Shares of Lazard International Equity
Select Portfolio and MSCI EAFE Index*

Average Annual Total Returns*
Periods Ended December 31, 2009

	One Year	Five Years	Since Inception	†
Institutional Shares**	20.86%	1.62%	2.99%
Open Shares**	20.49%	1.28%	2.70%
MSCI EAFE Index	31.78%	3.54%	4.60%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The MSCI EAFE Index is a broadly diversified international index comprised of equity securities of approximately 1,000 companies located outside the United States. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was May 31, 2001.

16  Annual Report

Lazard International Strategic Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Strategic Equity Portfolio and MSCI EAFE Index*

Average Annual Total Returns*Periods Ended December 31, 2009

	Institutional Shares					Open Shares
	One Year		Since Inception		†	One Year		Since Inception		†
International Strategic Equity Portfolio**		27.76%		4.02%			27.38%		0.24%
MSCI EAFE Index		31.78%		2.84%			31.78%		(0.33)%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The MSCI EAFE Index is a broadly diversified international index comprised of equity securities of approximately 1,000 companies located outside the United States. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares was October 31, 2005 and for Open Shares was February 3, 2006.

Annual Report  17

Lazard International Small Cap Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard International Small Cap Equity Portfolio and MSCI EAFE Small Cap Index*

Average Annual Total Returns*
Year Ended December 31, 2009

	One Year		Five Years		Ten Years
Institutional Shares**		39.17%		(0.70)%		4.60%
Open Shares**		39.00%		(0.96)%		4.25%
MSCI EAFE Small Cap Index		46.78%		3.50%		6.45%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The MSCI EAFE Small Cap Index is an arithmetic, market value-weighted average of the performance of securities of small cap companies listed on the stock exchanges of MSCI EAFE Index countries. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.

18  Annual Report

Lazard Emerging Markets Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Equity Portfolio and MSCI Emerging Markets Index*

Average Annual Total Returns*
Year Ended December 31, 2009

	One Year		Five Years		Ten Years
Institutional Shares**		69.82%		16.76%		11.54%
Open Shares**		69.14%		16.43%		11.22%
MSCI Emerging Markets Index		78.51%		15.51%		9.78%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The MSCI Emerging Markets Index is comprised of emerging market securities in countries open to non-local investors. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.

Annual Report  19

Lazard Developing Markets Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Developing Markets Equity Portfolio and MSCI Emerging Markets Index*

Average Annual Total Returns* Periods Ended December 31, 2009	One	Since
	Year	Inception	†
Institutional Shares**	108.53%	28.22%
Open Shares**	108.17%	27.95%
MSCI Emerging Markets Index	78.51%	22.78%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The MSCI Emerging Markets Index is comprised of emerging market securities in countries open to non-local investors. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was September 30, 2008.

20Annual Report

Lazard U.S. High Yield Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard U.S. High Yield Portfolio and Merrill Lynch High Yield Master II^® Index*

Average Annual Total Returns* Year Ended December 31, 2009	One		Five		Ten
	Year		Years		Years
Institutional Shares**	34.66	%	4.96	%	2.98	%
Open Shares**	34.40	%	4.75	%	2.72	%
Merrill Lynch High Yield Master II Index	57.51	%	6.35	%	6.52	%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The Merrill Lynch High Yield Master II Index provides a broad-based measure of the performance of the non-investment grade U.S. domestic bond market. The index is unmanaged, has no fees or costs and is not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.

Annual Report  21

Lazard Capital Allocator Opportunistic Strategies Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Capital Allocator Opportunistic Strategies Portfolio, MSCI World^® Index and Global Market Exposure Index*

Average Annual Total Returns* Periods Ended December 31, 2009	Institutional Shares					Open Shares
	One Year		Since Inception		†	One Year		Since Inception		†
Capital Allocator Opportunistic Strategies Portfolio**	21.21	%	(4.28	)%		20.71	%	(4.40	)%
MSCI World Index	29.99	%	(9.16	)%		29.99	%	(9.03	)%
Global Market Exposure Index	22.92	%	(1.21	)%		22.92	%	(1.21	)%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the indices have been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to their accuracy. The MSCI World Index is a market capitalization-weighted index of companies representative of the market structure of 23 developed market countries in North America, Europe, and the Asia/Pacific region. The Global Market Exposure Index is a blended index constructed by the Portfolio’s Investment Manager and is comprised of 36% Barclays Capital U.S. Aggregate Bond Index, 19.5% S&P 500 Index, 15% MSCI Europe Index, 9% MSCI Pacific Index, 6% MSCI Emerging Markets Index, 6% S&P MidCap 400 Index, 4.5% S&P SmallCap 600 Index, and 4% Three Month London Interbank Offered Rate (LIBOR). The indices are unmanaged, have no fees or costs and are not available for investment.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Institutional Shares was March 26, 2008 and for Open Shares was March 31, 2008.

22  Annual Report

   The Lazard Funds, Inc. Information About Your Portfolio’s Expenses

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2009 through December 31, 2009 and held for the entire period.

Actual Expenses

For each Share class of the Portfolios, the first line of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000=8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

For each Share class of the Portfolios, the second line of the table below provides information about hypothetical account values and hypothetical expenses based on the class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Portfolio’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolio and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholders reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as redemption fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total cost of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Portfolio	Beginning Account Value 7/1/09		Ending Account Value 12/31/09		Expenses Paid During Period* 7/1/09 - 12/31/09		Annualized Expense Ratio During Period 7/1/09 - 12/31/09
U.S. Equity Value Portfolio
Institutional Shares
Actual		$1,000.00		$1,213.40		$5.58		1.00%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,020.16		$5.09		1.00%
Open Shares
Actual		$1,000.00		$1,210.50		$7.24		1.30%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,018.65		$6.62		1.30%
U.S. Strategic Equity Portfolio
Institutional Shares
Actual		$1,000.00		$1,213.30		$5.86		1.05%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,019.91		$5.35		1.05%
Open Shares
Actual		$1,000.00		$1,211.50		$7.53		1.35%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,018.40		$6.87		1.35%
U.S. Mid Cap Equity Portfolio
Institutional Shares
Actual		$1,000.00		$1,249.90		$4.99		0.88%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,020.77		$4.49		0.88%
Open Shares
Actual		$1,000.00		$1,249.30		$6.43		1.13%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,019.49		$5.77		1.13%

Annual Report  23

Portfolio	Beginning Account Value 7/1/09		Ending Account Value 12/31/09		Expenses Paid During Period* 7/1/09 - 12/31/09		Annualized Expense Ratio During Period 7/1/09 - 12/31/09
U.S. Small-Mid Cap Equity Portfolio
Institutional Shares
Actual		$1,000.00		$1,311.10		$6.75		1.16%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,019.37		$5.90		1.16%
Open Shares
Actual		$1,000.00		$1,309.20		$8.43		1.45%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,017.90		$7.37		1.45%
International Equity Portfolio
Institutional Shares
Actual		$1,000.00		$1,185.30		$5.28		0.96%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,020.37		$4.88		0.96%
Open Shares
Actual		$1,000.00		$1,184.30		$6.75		1.23%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,019.03		$6.24		1.23%
International Equity Select Portfolio
Institutional Shares
Actual		$1,000.00		$1,161.30		$6.26		1.15%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,019.41		$5.85		1.15%
Open Shares
Actual		$1,000.00		$1,158.00		$7.89		1.45%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,017.90		$7.37		1.45%
International Strategic Equity Portfolio
Institutional Shares
Actual		$1,000.00		$1,191.90		$4.93		0.89%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,020.71		$4.54		0.89%
Open Shares
Actual		$1,000.00		$1,189.80		$6.44		1.17%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,019.32		$5.94		1.17%
International Small Cap Equity Portfolio
Institutional Shares
Actual		$1,000.00		$1,180.20		$6.21		1.13%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,019.51		$5.75		1.13%
Open Shares
Actual		$1,000.00		$1,179.60		$7.86		1.43%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,018.00		$7.27		1.43%
Emerging Markets Equity Portfolio
Institutional Shares
Actual		$1,000.00		$1,270.70		$6.57		1.15%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,019.42		$5.84		1.15%
Open Shares
Actual		$1,000.00		$1,268.00		$8.76		1.53%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,017.48		$7.79		1.53%

24  Annual Report

Portfolio	Beginning Account Value 7/1/09		Ending Account Value 12/31/09		Expenses Paid During Period* 7/1/09 - 12/31/09		Annualized Expense Ratio During Period 7/1/09 - 12/31/09
Developing Markets Equity Portfolio
Institutional Shares
Actual		$1,000.00		$1,370.60		$7.77		1.30%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,018.65		$6.61		1.30%
Open Shares
Actual		$1,000.00		$1,368.30		$9.55		1.60%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,017.14		$8.13		1.60%
U.S. High Yield Portfolio
Institutional Shares
Actual		$1,000.00		$1,135.10		$2.96		0.55%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,022.43		$2.80		0.55%
Open Shares
Actual		$1,000.00		$1,135.40		$4.57		0.85%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,020.92		$4.33		0.85%
Capital Allocator Opportunistic Strategies Portfolio
Institutional Shares
Actual		$1,000.00		$1,110.90		$5.43		1.02%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,020.06		$5.19		1.02%
Open Shares
Actual		$1,000.00		$1,107.90		$7.01		1.32%
Hypothetical (5% Return Before Expenses)		$1,000.00		$1,018.55		$6.72		1.32%

* Expenses are equal to the annualized expense ratio of each Share class multiplied by the average account value over the period, multiplied by 184/365 (to reflect one-half year period).

Annual Report  25

   The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2009

Sector*	Lazard U.S. Equity Value Portfolio			Lazard U.S. Strategic Equity Portfolio		Lazard U.S. Mid Cap Equity Portfolio		Lazard U.S. Small-Mid Cap Equity Portfolio		Lazard International Equity Portfolio
Consumer Discretionary		6.3	%	11.2	%	17.3	%	14.4	%	8.5	%
Consumer Staples		7.0		10.6		6.2		5.6		9.9
Energy		19.4		11.3		7.9		5.8		8.8
Financials		22.3		13.0		14.3		15.0		29.4
Health Care		11.7		14.6		12.0		9.6		10.2
Industrials		8.7		11.1		11.8		16.4		11.0
Information Technology		8.8		19.7		15.6		16.2		8.2
Materials		6.4		6.0		9.8		7.2		4.0
Telecommunication Services		4.8		1.0		—		—		7.0
Utilities		4.1		0.9		3.6		5.0		1.0
Short-Term Investments		0.5		0.6		1.5		4.8		2.0
Total Investments		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Sector*	Lazard International Equity Select Portfolio			Lazard International Strategic Equity Portfolio		Lazard International Small Cap Equity Portfolio		Lazard Global Listed Infrastructure Portfolio		Lazard Emerging Markets Equity Portfolio
Consumer Discretionary		4.2	%	13.8	%	12.7	%	—	%	5.4	%
Consumer Staples		14.4		11.0		4.1		—		13.5
Energy		10.2		6.7		8.6		—		5.9
Financials		31.1		31.2		11.7		—		22.4
Health Care		10.9		9.1		13.7		—		—
Industrials		3.3		9.3		26.0		—		6.8
Information Technology		12.9		7.5		14.4		—		16.6
Materials		4.3		4.4		5.8		—		12.1
Telecommunication Services		8.7		3.1		1.3		—		11.4
Utilities		—		1.6		1.1		—		1.6
Short-Term Investments		—		2.3		0.6		100.0		4.3
Total Investments		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Sector*	Lazard Developing Markets Equity Portfolio			Lazard Capital Allocator Opportunistic Strategies Portfolio
Consumer Discretionary		12.9	%	1.4	%
Consumer Staples		2.9		16.4
Energy		17.9		8.6
Financials		27.7		8.8
Health Care		—		5.2
Industrials		8.7		10.7
Information Technology		10.9		12.7
Materials		5.2		18.7
Telecommunication Services		5.4		0.6
Utilities		3.8		8.9
Other		—		5.4
Short-Term Investments		4.6		2.6
Total Investments		100.0	%	100.0	%

* Represents percentage of total investments.

26  Annual Report

   The Lazard Funds, Inc. Portfolio Holdings Presented by Credit Rating December 31, 2009

S&P Credit Rating*	Lazard U.S. High Yield Portfolio
BBB+		0.7	%
BBB		4.1
BBB-		9.0
BB+		10.5
BB		16.5
BB-		18.4
B+		13.2
B		8.5
B-		7.4
CCC+		3.0
CCC		1.8
CCC-		1.4
CC		0.3
Short-Term Investment		5.2
Total Investments		100.0	%

* Represents percentage of total investments.

Annual Report  27

   The Lazard Funds, Inc. Portfolios of Investments December 31, 2009

Description	Shares		Value
Lazard U.S. Equity Value Portfolio
Common Stocks  |   99.1%
Aerospace & Defense  |   3.6%
General Dynamics Corp.		1,600	$	109,072
Goodrich Corp.		900		57,825
Raytheon Co.		2,920		150,438
				317,335
Agriculture  |  0.6%
The Mosaic Co.		800		47,784
Alcohol & Tobacco  |  2.9%
Altria Group, Inc.		5,140		100,898
Molson Coors Brewing Co., Class B		910		41,096
Reynolds American, Inc.		2,120		112,296
				254,290
Banking  |  10.1%
Bank of America Corp.		18,900		284,634
Fifth Third Bancorp		4,100		39,975
JPMorgan Chase & Co.		7,446		310,275
Wells Fargo & Co.		9,300		251,007
				885,891
Cable Television  |  2.2%
Comcast Corp., Class A		8,390		134,324
Time Warner Cable, Inc.		1,448		59,933
				194,257
Chemicals  |  0.5%
Air Products & Chemicals, Inc.		550		44,583
Computer Software  |  2.3%
Microsoft Corp.		2,000		60,980
Oracle Corp.		3,570		87,608
Symantec Corp. (a)		2,770		49,555
				198,143
Construction & Engineering  |  0.9%
Foster Wheeler AG (a)		2,670		78,605
Consumer Products  |  1.8%
Energizer Holdings, Inc. (a)		760		46,573
Kimberly-Clark Corp.		689		43,896
The Procter & Gamble Co.		1,105		66,996
				157,465

Description	Shares		Value
Electric  |  4.1%
American Electric Power Co., Inc.		2,580	$	89,758
CMS Energy Corp.		2,980		46,667
DPL, Inc.		1,920		52,992
Entergy Corp.		570		46,649
Exelon Corp.		1,020		49,847
PG&E Corp.		810		36,166
PPL Corp.		1,060		34,249
				356,328
Energy Exploration & Production  |  7.0%
Anadarko Petroleum Corp.		1,210		75,528
Apache Corp.		1,000		103,170
Devon Energy Corp.		1,365		100,328
EOG Resources, Inc.		650		63,245
Newfield Exploration Co. (a)		930		44,854
Noble Energy, Inc.		950		67,659
Occidental Petroleum Corp.		1,940		157,819
				612,603
Energy Integrated  |  10.9%
Chevron Corp.		3,281		252,604
ConocoPhillips		3,680		187,937
Exxon Mobil Corp.		5,756		392,502
Hess Corp.		910		55,055
Marathon Oil Corp.		1,990		62,128
				950,226
Energy Services  |  1.6%
Halliburton Co.		4,530		136,308
Financial Services  |  5.1%
Ameriprise Financial, Inc.		2,080		80,746
Bank of New York Mellon Corp.		4,514		126,256
MasterCard, Inc., Class A		210		53,756
Morgan Stanley		2,720		80,512
The Goldman Sachs Group, Inc.		635		107,213
				448,483
Food & Beverages  |  1.1%
General Mills, Inc.		720		50,983
PepsiCo, Inc.		800		48,640
				99,623
Health Services  |  1.4%
WellPoint, Inc. (a)		2,150		125,324

The accompanying notes are an integral part of these financial statements.

28  Annual Report

Description	Shares		Value
Lazard U.S. Equity Value Portfolio (concluded)
Insurance  |  7.3%
ACE, Ltd. (a)		1,500	$	75,600
Aon Corp.		1,210		46,391
Everest Re Group, Ltd.		510		43,697
MetLife, Inc.		2,520		89,082
PartnerRe, Ltd.		700		52,262
Prudential Financial, Inc.		1,810		90,066
The Allstate Corp.		3,200		96,128
The Travelers Cos., Inc.		1,570		78,280
Willis Group Holdings, Ltd.		2,670		70,435
				641,941
Leisure & Entertainment  |  4.1%
Burger King Holdings, Inc.		3,080		57,966
Darden Restaurants, Inc.		2,750		96,442
McDonald’s Corp.		700		43,708
The Walt Disney Co.		1,660		53,535
Time Warner, Inc.		1,433		41,758
Viacom, Inc., Class B (a)		2,170		64,514
				357,923
Manufacturing  |  4.2%
AGCO Corp. (a)		1,400		45,276
Flowserve Corp.		510		48,210
General Electric Co.		10,135		153,343
Honeywell International, Inc.		1,110		43,512
SPX Corp.		1,360		74,392
				364,733
Medical Products  |  2.0%
Covidien PLC		1,070		51,242
Medtronic, Inc.		2,770		121,825
				173,067
Metal & Glass Containers  |  3.0%
Ball Corp.		1,300		67,210
Owens-Illinois, Inc. (a)		3,320		109,128
Pactiv Corp. (a)		3,570		86,180
				262,518
Metals & Mining  |  2.3%
Cliffs Natural Resources, Inc.		1,200		55,308
Freeport-McMoRan Copper & Gold, Inc.		1,360		109,195
Newmont Mining Corp.		810		38,321
				202,824

Description	Shares		Value
Pharmaceutical & Biotechnology  |  8.3%
Amgen, Inc. (a)		760	$	42,993
Johnson & Johnson		1,273		81,994
Merck & Co., Inc.		4,740		173,200
Pfizer, Inc.		20,224		367,874
Talecris Biotherapeutics Holdings Corp.		2,900		64,583
				730,644
Retail  |  1.1%
CVS Caremark Corp.		3,080		99,207
Semiconductors & Components  |  2.0%
Intel Corp.		5,920		120,768
Texas Instruments, Inc.		2,100		54,726
				175,494
Technology Hardware  |  3.9%
Dell, Inc. (a)		3,200		45,952
EMC Corp. (a)		3,000		52,410
Hewlett-Packard Co.		2,830		145,773
International Business Machines Corp.		760		99,484
				343,619
Telecommunications  |  4.8%
AT&T, Inc.		11,420		320,102
Verizon Communications, Inc.		3,129		103,664
				423,766
Total Common Stocks
(Identified cost $8,191,941)				8,682,984
Preferred Stock  |  0.3%
Banking  |  0.3%
Bank of America Corp.
(Identified cost $25,500)		1,700		25,364
Short-Term Investment  |  0.4%
State Street Institutional Treasury
Money Market Fund
(Identified cost $40,684)		40,684		40,684
Total Investments  |  99.8%
(Identified cost $8,258,125) (b)			$	8,749,032
Cash and Other Assets in
Excess of Liabilities  |  0.2%				15,064
Net Assets  |  100.0%			$	8,764,096

The accompanying notes are an integral part of these financial statements.

Annual Report  29

Description	Shares		Value
Lazard U.S. Strategic Equity Portfolio
Common Stocks  |  99.1%
Aerospace & Defense  |  2.5%
Raytheon Co.		37,000	$	1,906,240
Agriculture  |  1.5%
The Mosaic Co.		19,000		1,134,870
Alcohol & Tobacco  |  2.1%
Molson Coors Brewing Co., Class B		34,400		1,553,504
Banking  |  4.5%
Bank of America Corp.		23,300		350,898
JPMorgan Chase & Co.		46,791		1,949,781
Wells Fargo & Co.		40,400		1,090,396
				3,391,075
Cable Television  |  4.2%
Comcast Corp., Class A		195,500		3,129,955
Chemicals  |  1.0%
Air Products & Chemicals, Inc.		9,400		761,964
Coal  |  0.9%
Massey Energy Co.		15,800		663,758
Commercial Services  |  2.1%
Corrections Corp. of America (a)		33,600		824,880
Republic Services, Inc.		26,800		758,708
				1,583,588
Computer Software  |  6.7%
Microsoft Corp.		80,135		2,443,316
Oracle Corp.		64,700		1,587,738
Symantec Corp. (a)		56,600		1,012,574
				5,043,628
Consumer Products  |  3.6%
Kimberly-Clark Corp.		20,580		1,311,152
Mattel, Inc.		71,400		1,426,572
				2,737,724
Electric  |  0.8%
American Electric Power Co., Inc.		18,100		629,699

Description	Shares		Value
Energy Exploration & Production  |  3.0%
Apache Corp.		7,300	$	753,141
EOG Resources, Inc.		7,575		737,047
Occidental Petroleum Corp.		8,925		726,049
				2,216,237
Energy Integrated  |  5.4%
Chevron Corp.		23,800		1,832,362
ConocoPhillips		42,800		2,185,796
				4,018,158
Energy Services  |  1.3%
Halliburton Co.		20,100		604,809
Transocean, Ltd. (a)		4,500		372,600
				977,409
Financial Services  |  5.1%
Ameriprise Financial, Inc.		34,300		1,331,526
Morgan Stanley		24,600		728,160
NYSE Euronext		21,200		536,360
State Street Corp.		12,400		539,896
The Charles Schwab Corp.		36,100		679,402
				3,815,344
Food & Beverages  |  0.8%
PepsiCo, Inc.		9,500		577,600
Insurance  |  2.3%
PartnerRe, Ltd.		9,200		686,872
The Travelers Cos., Inc.		21,200		1,057,032
				1,743,904
Leisure & Entertainment  |  1.6%
McDonald’s Corp.		19,100		1,192,604
Manufacturing  |  5.2%
Dover Corp.		27,900		1,160,919
Emerson Electric Co.		30,600		1,303,560
Honeywell International, Inc.		18,993		744,526
Parker Hannifin Corp.		13,600		732,768
				3,941,773
Medical Products  |  2.1%
CareFusion Corp. (a)		18,200		455,182
Medtronic, Inc.		26,000		1,143,480
				1,598,662
Metal & Glass Containers  |  2.5%
Ball Corp.		35,815		1,851,635

The accompanying notes are an integral part of these financial statements.

30  Annual Report

Description	Shares		Value
Lazard U.S. Strategic Equity Portfolio (concluded)
Metals & Mining  |  1.0%
Newmont Mining Corp.		15,200	$	719,112
Pharmaceutical & Biotechnology  |  12.5%
Amgen, Inc. (a)		13,800		780,666
Gilead Sciences, Inc. (a)		17,300		748,744
Johnson & Johnson		50,360		3,243,688
Merck & Co., Inc.		20,400		745,416
Pfizer, Inc.		176,600		3,212,354
Talecris Biotherapeutics Holdings Corp.		29,400		654,738
				9,385,606
Real Estate  |  0.8%
Public Storage REIT		7,700		627,165
Refining  |  0.8%
Valero Energy Corp.		37,200		623,100
Retail  |  9.6%
AutoZone, Inc. (a)		5,800		916,806
Family Dollar Stores, Inc.		37,700		1,049,191
J.C. Penney Co., Inc.		27,025		719,135
Wal-Mart Stores, Inc.		37,200		1,988,340
Walgreen Co.		68,900		2,530,008
				7,203,480
Semiconductors & Components  |  2.2%
Applied Materials, Inc.		46,700		650,998
Intel Corp.		50,000		1,020,000
				1,670,998
Technology  |  2.7%
eBay, Inc. (a)		49,500		1,165,230
Google, Inc., Class A (a)		1,400		867,972
				2,033,202

Description	Shares		Value
Technology Hardware  |  8.1%
Cisco Systems, Inc. (a)		61,255	$	1,466,445
EMC Corp. (a)		21,600		377,352
Hewlett-Packard Co.		28,700		1,478,337
International Business Machines Corp.		20,990		2,747,591
				6,069,725
Telecommunications  |  1.0%
Verizon Communications, Inc.		23,000		761,990
Transportation  |  1.2%
Norfolk Southern Corp.		17,100		896,382
Total Common Stocks
(Identified cost $65,252,124)				74,460,091
Preferred Stock  |  0.3%
Banking  |  0.3%
Bank of America Corp. (Identified cost $219,000)		14,600		217,832
Short-Term Investment  |  0.6%
State Street Institutional Treasury Money Market Fund (Identified cost $425,202)		425,202		425,202
Total Investments  |  100.0%
(Identified cost $65,896,326) (b)			$	75,103,125
Liabilities in Excess of Cash and Other Assets  |  0.0%				(5,822	)
Net Assets  |  100.0%			$	75,097,303

The accompanying notes are an integral part of these financial statements.

Annual Report  31

Description	Shares		Value
Lazard U.S. Mid Cap Equity Portfolio
Common Stocks  |  98.5%
Aerospace & Defense  |  1.4%
Spirit AeroSystems Holdings, Inc., Class A (a)		155,500	$	3,088,230
Alcohol & Tobacco  |  2.1%
Molson Coors Brewing Co., Class B		100,800		4,552,128
Banking  |  4.6%
City National Corp.		81,800		3,730,080
Fifth Third Bancorp		141,300		1,377,675
Hudson City Bancorp, Inc.		137,400		1,886,502
Northern Trust Corp.		54,700		2,866,280
				9,860,537
Cable Television  |  0.8%
Cablevision Systems Corp.		67,400		1,740,268
Chemicals  |  2.7%
Air Products & Chemicals, Inc.		44,200		3,582,852
RPM International, Inc.		102,800		2,089,924
				5,672,776
Coal  |  0.8%
Massey Energy Co.		41,600		1,747,616
Commercial Services  |  8.8%
Corrections Corp. of America (a)		161,100		3,955,005
DST Systems, Inc. (a)		59,000		2,569,450
Fidelity National Information Services, Inc.		136,000		3,187,840
Genuine Parts Co.		112,800		4,281,888
Republic Services, Inc.		165,500		4,685,305
				18,679,488
Computer Software  |  4.9%
BMC Software, Inc. (a)		71,000		2,847,100
Intuit, Inc. (a)		103,500		3,178,485
Symantec Corp. (a)		243,400		4,354,426
				10,380,011
Construction & Engineering | 0.9%
Foster Wheeler AG (a)		63,600		1,872,384
Consumer Products  |  3.9%
Avon Products, Inc.		42,700		1,345,050
Mattel, Inc.		345,300		6,899,094
				8,244,144

Description	Shares		Value
Electric  |  2.1%
American Electric Power Co., Inc.		127,800	$	4,446,162
Energy  |  1.5%
Covanta Holding Corp. (a)		182,700		3,305,043
Energy Exploration & Production  |  1.5%
Energen Corp.		68,700		3,215,160
Energy Services  |  4.6%
Patterson-UTI Energy, Inc.		109,700		1,683,895
Smith International, Inc.		39,400		1,070,498
The Williams Cos., Inc.		172,200		3,629,976
Tidewater, Inc.		69,500		3,332,525
				9,716,894
Financial Services  |  2.8%
Ameriprise Financial, Inc.		125,700		4,879,674
NYSE Euronext		42,600		1,077,780
				5,957,454
Food & Beverages  |  3.5%
Campbell Soup Co.		37,900		1,281,020
McCormick & Co., Inc.		109,100		3,941,783
Ralcorp Holdings, Inc. (a)		35,800		2,137,618
				7,360,421
Forest & Paper Products  |  0.9%
Packaging Corp. of America		84,200		1,937,442
Health Services  |  1.5%
Omnicare, Inc.		129,000		3,119,220
Insurance  |  3.0%
Marsh & McLennan Cos., Inc.		48,200		1,064,256
PartnerRe, Ltd.		29,300		2,187,538
RenaissanceRe Holdings, Ltd.		60,600		3,220,890
				6,472,684
Internet Security  |  1.3%
VeriSign, Inc. (a)		113,600		2,753,664
Leisure & Entertainment  |  4.5%
Apollo Group, Inc., Class A (a)		19,100		1,157,078
Burger King Holdings, Inc.		235,000		4,422,700
Viacom, Inc., Class B (a)		133,100		3,957,063
				9,536,841

The accompanying notes are an integral part of these financial statements.

32  Annual Report

Description	Shares		Value
Lazard U.S. Mid Cap Equity Portfolio (concluded)
Manufacturing  |  5.2%
Dover Corp.		122,900	$	5,113,869
Parker Hannifin Corp.		58,100		3,130,428
Teleflex, Inc.		51,500		2,775,335
				11,019,632
Medical Products  |  5.7%
CareFusion Corp. (a)		127,350		3,185,023
Hospira, Inc. (a)		56,400		2,876,400
Life Technologies Corp. (a)		59,881		3,127,585
Zimmer Holdings, Inc. (a)		49,900		2,949,589
				12,138,597
Metal & Glass Containers  |  3.6%
Ball Corp.		146,700		7,584,390
Metals & Mining  |  2.7%
Cliffs Natural Resources, Inc.		59,100		2,723,919
Compass Minerals International, Inc.		44,800		3,010,112
				5,734,031
Pharmaceutical & Biotechnology  |  3.5%
Talecris Biotherapeutics Holdings Corp. (a)		200,800		4,471,816
Warner Chilcott PLC, Class A (a)		105,000		2,989,350
				7,461,166
Real Estate  |  3.8%
Public Storage REIT		31,900		2,598,255
The St. Joe Co. (a)		97,100		2,805,219
UDR, Inc. REIT		169,100		2,780,004
				8,183,478
Refining  |  2.6%
Holly Corp.		163,700		4,195,631
Valero Energy Corp.		75,300		1,261,275
				5,456,906

Description	Shares		Value
Retail  |  6.7%
American Eagle Outfitters, Inc.		141,700	$	2,406,066
AutoZone, Inc. (a)		16,400		2,592,348
Family Dollar Stores, Inc.		184,700		5,140,201
J.C. Penney Co., Inc.		156,700		4,169,787
				14,308,402
Semiconductors & Components  |  1.7%
Agilent Technologies, Inc. (a)		49,200		1,528,644
Analog Devices, Inc.		69,300		2,188,494
				3,717,138
Technology Hardware  |  3.9%
Ingram Micro, Inc., Class A (a)		270,800		4,725,460
Juniper Networks, Inc. (a)		51,500		1,373,505
NetApp, Inc. (a)		66,700		2,293,813
				8,392,778
Telecommunications  |  1.0%
NeuStar, Inc., Class A (a)		93,700		2,158,848
Total Common Stocks (Identified cost $182,592,327)				209,813,933
Short-Term Investment  |  1.5%
State Street Institutional Treasury Money Market Fund (Identified cost $3,137,173)		3,137,173		3,137,173
Total Investments  |  100.0%
(Identified cost $185,729,500) (b)			$	212,951,106
Cash and Other Assets in Excess of Liabilities  |  0.0%				53,172
Net Assets  |  100.0%			$	213,004,278

The accompanying notes are an integral part of these financial statements.

Annual Report  33

Description	Shares		Value
Lazard U.S. Small-Mid Cap Equity Portfolio
Common Stocks  |  95.3%
Automotive  |  2.4%
Copart, Inc. (a)		14,100	$	516,483
Modine Manufacturing Co. (a)		49,700		588,448
Tenneco, Inc. (a)		40,400		716,292
				1,821,223
Banking  |  7.5%
City National Corp.		10,700		487,920
Home Bancshares, Inc.		41,200		991,684
Northwest Bancshares, Inc. (a)		68,900		779,948
PacWest Bancorp		59,301		1,194,915
Prosperity Bancshares, Inc.		32,140		1,300,706
Wintrust Financial Corp.		29,800		917,542
				5,672,715
Chemicals  |  2.4%
Innospec, Inc.		71,884		725,310
Rockwood Holdings, Inc. (a)		45,200		1,064,912
				1,790,222
Commercial Services  |  2.8%
Corrections Corp. of America (a)		39,200		962,360
Medidata Solutions, Inc. (a)		22,900		357,240
Team, Inc. (a)		43,000		808,830
				2,128,430
Computer Software  |  1.7%
Informatica Corp. (a)		21,700		561,162
Intuit, Inc. (a)		24,000		737,040
				1,298,202
Construction & Engineering  |  2.9%
Great Lakes Dredge & Dock Co.		127,400		825,552
Hill International, Inc. (a)		84,100		524,784
MasTec, Inc. (a)		65,100		813,750
				2,164,086
Consumer Products  |  8.2%
Bare Escentuals, Inc. (a)		58,500		715,455
Central Garden & Pet Co., Class A (a)		143,400		1,425,396
Chattem, Inc. (a)		7,200		671,760
Mattel, Inc.		44,100		881,118
Matthews International Corp., Class A		20,500		726,315
Tempur-Pedic International, Inc. (a)		31,900		753,797
The Middleby Corp. (a)		20,850		1,022,067
				6,195,908

Description	Shares		Value
Electric  |  3.3%
MGE Energy, Inc.		34,400	$	1,229,456
Northeast Utilities		49,800		1,284,342
				2,513,798
Energy Exploration & Production  |  1.7%
Cabot Oil & Gas Corp.		17,800		775,902
Petrohawk Energy Corp. (a)		21,100		506,189
				1,282,091
Energy Integrated  |  2.1%
Cimarex Energy Co.		16,600		879,302
Sunoco, Inc.		26,100		681,210
				1,560,512
Energy Services  |  2.0%
Helmerich & Payne, Inc.		18,500		737,780
Kinder Morgan Management LLC (c)		107,325		0
Oceaneering International, Inc. (a)		13,400		784,168
				1,521,948
Financial Services  |  2.4%
Piper Jaffray Cos., Inc. (a)		23,500		1,189,335
Waddell & Reed Financial, Inc., Class A		20,850		636,759
				1,826,094
Food & Beverages  |  1.8%
American Italian Pasta Co., Class A (a)		23,700		824,523
Diamond Foods, Inc.		15,700		557,978
				1,382,501
Gas Utilities  |  1.7%
AGL Resources, Inc.		35,500		1,294,685
Housing  |  0.7%
Trex Co., Inc. (a)		26,800		525,280
Insurance  |  2.5%
HCC Insurance Holdings, Inc.		34,400		962,168
Verisk Analytics, Inc., Class A (a)		30,100		911,428
				1,873,596
Leisure & Entertainment  |  2.7%
Burger King Holdings, Inc.		48,700		916,534
Darden Restaurants, Inc.		14,800		519,036
Texas Roadhouse, Inc. (a)		56,800		637,864
				2,073,434
Manufacturing  |  8.7%
A123 Systems, Inc.		18,900		424,116
Altra Holdings, Inc. (a)		68,600		847,210
Dover Corp.		15,050		626,230

The accompanying notes are an integral part of these financial statements.

34Annual Report

Description	Shares		Value
Lazard U.S. Small-Mid Cap Equity Portfolio (concluded)
DXP Enterprises, Inc. (a)		71,700	$	937,119
Ener1, Inc. (a)		68,500		434,290
FLIR Systems, Inc. (a)		24,600		804,912
Hexcel Corp. (a)		24,650		319,957
Kaman Corp.		27,000		623,430
Regal-Beloit Corp.		13,450		698,593
Teleflex, Inc.		15,800		851,462
				6,567,319
Medical Products  |  4.8%
CareFusion Corp. (a)		36,200		905,362
Haemonetics Corp. (a)		14,900		821,735
Hospira, Inc. (a)		20,800		1,060,800
Life Technologies Corp. (a)		15,400		804,342
				3,592,239
Metal & Glass Containers  |  1.7%
Ball Corp.		13,400		692,780
Owens-Illinois, Inc. (a)		18,600		611,382
				1,304,162
Metals & Mining  |  3.1%
Allegheny Technologies, Inc.		17,500		783,475
Cliffs Natural Resources, Inc.		17,100		788,139
Schnitzer Steel Industries, Inc., Class A		15,900		758,430
				2,330,044
Pharmaceutical & Biotechnology  |  3.3%
Medicis Pharmaceutical Corp., Class A		33,500		906,175
United Therapeutics Corp. (a)		14,200		747,630
Warner Chilcott PLC, Class A (a)		28,900		822,783
				2,476,588
Real Estate  |  3.8%
Digital Realty Trust, Inc. REIT		21,500		1,081,020
The Macerich Co. REIT		18,541		666,549
UDR, Inc. REIT		69,900		1,149,156
				2,896,725
Retail  |  6.8%
American Eagle Outfitters, Inc.		55,550		943,239
Family Dollar Stores, Inc.		35,400		985,182
Iconix Brand Group, Inc. (a)		66,200		837,430
Kirkland’s, Inc. (a)		51,400		892,818
Liz Claiborne, Inc. (a)		96,800		544,984
The Gymboree Corp. (a)		22,350		972,001
				5,175,654

Description	Shares		Value
Semiconductors & Components  |  4.4%
CPI International, Inc. (a)		63,486	$	840,555
STEC, Inc. (a)		69,200		1,130,728
Supertex, Inc. (a)		27,100		807,580
TriQuint Semiconductor, Inc. (a)		86,600		519,600
				3,298,463
Technology  |  1.1%
Solera Holdings, Inc.		22,400		806,624
Technology Hardware  |  7.2%
Brocade Communications Systems, Inc. (a)		69,100		527,233
Ingram Micro, Inc., Class A (a)		42,500		741,625
Itron, Inc. (a)		5,400		364,878
Polycom, Inc. (a)		52,550		1,312,174
Seagate Technology		56,400		1,025,916
Synaptics, Inc. (a)		47,050		1,442,082
				5,413,908
Transportation  |  1.6%
Echo Global Logistics, Inc.		47,950		608,486
UTI Worldwide, Inc.		42,050		602,156
				1,210,642
Total Common Stocks (Identified cost $56,001,904)				71,997,093
Description	Principal Amount (000)		Value
Repurchase Agreement  |  4.7%
State Street Bank and Trust Co., 0.00%, 01/04/10 (Dated 12/31/09, collateralized by $3,670,000 United States Treasury Bill, 0.00%, 07/01/10, with a value of $3,666,330) Proceeds of $3,593,000 (Identified cost $3,593,000)	$	3,593		3,593,000
Total Investments  |  100.0%
(Identified cost $59,594,904) (b)			$	75,590,093
Liabilities in Excess of Cash and Other Assets  |  0.0%				(17,204	)
Net Assets  |  100.0%			$	75,572,889

The accompanying notes are an integral part of these financial statements.

Annual Report  35

Description	Shares		Value
Lazard International Equity Portfolio
Common Stocks | 97.3%
Australia  |  1.2%
QBE Insurance Group, Ltd.		80,800	$	1,844,222
Belgium  |  2.1%
Anheuser-Busch InBev NV		64,300		3,322,002
Brazil  |  2.7%
Banco do Brasil SA		125,400		2,114,568
Cielo SA		256,300		2,233,812
Total Brazil				4,348,380
Canada  |  1.9%
Rogers Communications, Inc.		48,200		1,506,581
Telus Corp.		45,600		1,485,919
Total Canada				2,992,500
China  |  1.6%
Industrial and Commercial Bank of China, Ltd., Class H		3,134,100		2,572,018
Denmark  |  1.5%
DSV A/S (a)		41,900		751,703
Novo Nordisk A/S, Class B		24,475		1,565,979
Total Denmark				2,317,682
France  |  9.6%
BNP Paribas SA		43,138		3,404,176
Danone SA		26,720		1,627,229
Sanofi-Aventis		64,147		5,028,272
Societe Generale		30,900		2,138,047
Total SA		46,796		2,998,760
Total France				15,196,484
Germany  |  7.4%
Allianz SE		12,100		1,506,122
Bayerische Motoren Werke AG		22,100		1,004,701
Daimler AG		42,300		2,259,962
Merck KGaA		12,600		1,177,705
SAP AG		49,100		2,315,750
Siemens AG		37,788		3,466,026
Total Germany				11,730,266

Description	Shares		Value
Hong Kong  |  2.8%
Esprit Holdings, Ltd.		439,596	$	2,893,199
Kerry Properties, Ltd.		315,500		1,593,056
Total Hong Kong				4,486,255
India  |  0.6%
Idea Cellular, Ltd. (a)		809,100		998,714
Ireland  |  1.4%
CRH PLC		82,369		2,231,184
Italy  |  1.4%
Atlantia SpA		60,850		1,581,744
Prysmian SpA		33,165		580,543
Total Italy				2,162,287
Japan  |  16.6%
Benesse Holdings, Inc.		17,000		710,911
Canon, Inc.		103,100		4,358,559
Daito Trust Construction Co., Ltd.		52,000		2,452,102
Fanuc, Ltd.		8,700		808,972
Honda Motor Co., Ltd.		48,100		1,626,360
Hoya Corp.		95,700		2,537,080
Inpex Corp.		172		1,290,942
KDDI Corp.		350		1,845,684
Keyence Corp.		7,400		1,525,591
Kubota Corp.		170,000		1,563,292
Mitsubishi Corp.		99,000		2,461,421
Mitsubishi Estate Co., Ltd.		122,000		1,935,099
Nomura Holdings, Inc.		239,000		1,761,327
Secom Co., Ltd.		31,000		1,466,299
Total Japan				26,343,639
Mexico  |  1.0%
Grupo Televisa SA Sponsored ADR		74,300		1,542,468
Netherlands  |  1.0%
TNT NV		50,965		1,559,980
Norway  |  1.0%
Aker Solutions ASA		128,700		1,671,601
Russia  |  0.9%
OAO LUKOIL Sponsored ADR		26,050		1,459,186

The accompanying notes are an integral part of these financial statements.

36Annual Report

Description	Shares		Value
Lazard International Equity Portfolio (concluded)
Singapore  |  0.9%
Singapore Telecommunications, Ltd.		658,600	$	1,450,351
Spain  |  3.1%
Banco Bilbao Vizcaya Argentaria SA		120,800		2,188,212
Banco Santander SA		163,152		2,680,570
Total Spain				4,868,782
Switzerland  |  10.6%
Credit Suisse Group AG		70,700		3,482,055
Julius Baer Group Ltd.		27,400		956,961
Nestle SA		49,260		2,393,189
Novartis AG		59,130		3,221,534
Roche Holding AG		16,800		2,857,952
UBS AG (a)		119,100		1,829,604
Zurich Financial Services AG		9,570		2,080,773
Total Switzerland				16,822,068
Turkey  |  0.7%
Turkcell Iletisim Hizmetleri AS ADR		60,800		1,063,392
United Kingdom  |  27.3%
BAE Systems PLC		412,400		2,376,591
Barclays PLC		448,600		1,976,836
BG Group PLC		158,200		2,833,011
BHP Billiton PLC		50,900		1,625,885
BP PLC		366,798		3,547,371
British Airways PLC (a)		244,300		728,803
British American Tobacco PLC		77,360		2,509,605
GlaxoSmithKline PLC		105,300		2,230,587
HSBC Holdings PLC		190,550		2,174,620
Informa PLC		314,400		1,608,337
International Power PLC		308,300		1,525,410

Description	Shares		Value
Lloyds Banking Group PLC (a)		3,558,906	$	2,857,067
Prudential PLC		236,100		2,405,166
Standard Chartered PLC		94,900		2,376,541
Tesco PLC		321,700		2,210,340
Unilever PLC		110,400		3,533,815
Vodafone Group PLC		1,162,483		2,691,963
WPP PLC		182,300		1,780,136
Xstrata PLC (a)		135,300		2,383,135
Total United Kingdom				43,375,219
Total Common Stocks
(Identified cost $144,562,421)				154,358,680
Description	Principal Amount (000)		Value
Repurchase Agreement  |  2.0%
State Street Bank and Trust Co., 0.00%, 01/04/10 (Dated 12/31/09, collateralized by $3,270,000 United States Treasury Bill, 0.00%, 07/01/10, with a value of $3,266,730) Proceeds of $3,198,000 (Identified cost $3,198,000)	$	3,198		3,198,000
Total Investments  |  99.3%
(Identified cost $147,760,421) (b)			$	157,556,680
Cash and Other Assets in Excess of Liabilities  |  0.7%				1,032,965
Net Assets  |  100.0%			$	158,589,645

The accompanying notes are an integral part of these financial statements.

Annual Report  37

Description	Shares		Value
Lazard International Equity Select Portfolio
Common Stocks  |  98.5%
Australia  |  1.7%
BHP Billiton, Ltd.		3,807	$	145,784
Belgium  |  2.5%
Anheuser-Busch InBev NV		4,044		208,930
Brazil  |  4.4%
Cielo SA		12,900		112,431
Petroleo Brasileiro SA ADR		1,705		81,294
Redecard SA		10,625		175,077
Total Brazil				368,802
Canada  |  1.9%
Barrick Gold Corp.		1,985		78,690
Rogers Communications, Inc.		2,705		84,550
Total Canada				163,240
Denmark  |  1.6%
Novo Nordisk A/S, Class B		2,110		135,004
Finland  |  2.0%
Nokia Corp. Sponsored ADR		5,395		69,326
Sampo Oyj, A Shares		4,195		101,811
Total Finland				171,137
France  |  13.1%
BNP Paribas SA		3,013		237,767
LVMH Moet Hennessy Louis Vuitton SA		1,296		145,518
Sanofi-Aventis		3,775		295,910
Societe Generale		2,905		201,004
Total SA Sponsored ADR		3,605		230,864
Total France				1,111,063
Germany  |  3.2%
Allianz SE ADR		10,065		125,309
Merck KGaA		719		67,204
SAP AG		1,665		78,528
Total Germany				271,041

Description	Shares		Value
Hong Kong  |  3.0%
Esprit Holdings, Ltd.		24,703	$	162,582
Sun Hung Kai Properties, Ltd.		5,950		88,289
Total Hong Kong				250,871
Indonesia  |  1.8%
PT Telekomunikasi Indonesia Tbk
Sponsored ADR		3,860		154,207
Ireland  |  1.1%
CRH PLC		3,320		90,752
Israel  |  0.5%
Israel Chemicals, Ltd.		3,539		46,207
Italy  |  1.5%
Eni SpA Sponsored ADR		2,445		123,742
Japan  |  11.4%
Canon, Inc. Sponsored ADR		6,245		264,288
Fanuc, Ltd.		1,365		126,925
Hoya Corp. Sponsored ADR		6,360		169,176
Keyence Corp.		365		75,249
Mitsubishi Estate Co., Ltd.		6,910		109,603
Nomura Holdings, Inc.		17,165		126,499
Sumitomo Mitsui Financial Group, Inc. ADR		30,850		87,922
Total Japan				959,662
Mexico  |  0.5%
Grupo Televisa SA Sponsored ADR		1,950		40,482
Netherlands  |  1.0%
Heineken NV ADR		3,635		86,549
Russia  |  1.1%
Mobile TeleSystems Sponsored ADR		940		45,957
OAO LUKOIL Sponsored ADR		815		45,652
Total Russia				91,609
Singapore  |  1.5%
Singapore Telecommunications, Ltd. ADR		5,840		128,188

The accompanying notes are an integral part of these financial statements.

38Annual Report

Description	Shares		Value
Lazard International Equity Select Portfolio (concluded)
Spain  |  2.5%
Banco Bilbao Vizcaya Argentaria SA		11,615	$	210,398
Switzerland  |  10.2%
Credit Suisse Group AG		4,220		207,840
Nestle SA Sponsored ADR		2,845		137,556
Novartis AG ADR		1,805		98,246
Roche Holding AG		1,028		174,879
UBS AG (a)		7,430		114,139
Zurich Financial Services AG ADR		5,865		127,505
Total Switzerland				860,165
Taiwan  |  1.6%
Taiwan Semiconductor Manufacturing
Co., Ltd. Sponsored ADR		11,562		132,269
Turkey  |  1.7%
Turkcell Iletisim Hizmetleri AS ADR		8,230		143,943
United Kingdom  |  28.7%
BAE Systems PLC		25,269		145,621
Barclays PLC		52,654		232,029
BG Group PLC		6,100		109,237
BP PLC Sponsored ADR		3,660		212,170
British American Tobacco PLC
Sponsored ADR		2,695		174,259

Description	Shares		Value
GlaxoSmithKline PLC Sponsored ADR		3,215	$	135,834
Imperial Tobacco Group PLC ADR		3,465		219,612
Lloyds Banking Group PLC (a)		330,025		264,942
Prudential PLC		21,171		215,670
Standard Chartered PLC		5,528		138,435
Tesco PLC Sponsored ADR		5,415		111,387
Tullow Oil PLC		2,035		42,438
Unilever PLC Sponsored ADR		5,635		179,757
Vodafone Group PLC Sponsored ADR		7,180		165,786
William Morrison Supermarkets PLC		18,650		83,147
Total United Kingdom				2,430,324
Total Common Stocks
(Identified cost $7,605,830)				8,324,369
Short-Term Investment  |  0.0%
State Street Institutional Treasury
Money Market Fund
(Identified cost $610)		610		610
Total Investments  |  98.5%
(Identified cost $7,606,440) (b)			$	8,324,979
Cash and Other Assets in
Excess of Liabilities  |  1.5%				130,579
Net Assets  |  100.0%			$	8,455,558

The accompanying notes are an integral part of these financial statements.

Annual Report  39

Description	Shares		Value
Lazard International Strategic Equity Portfolio
Common Stocks  |  95.8%
Australia  |  1.7%
QBE Insurance Group, Ltd.		243,900	$	5,566,902
Belgium  |  4.9%
Anheuser-Busch InBev NV		184,330		9,523,244
Umicore NV		205,730		6,850,792
Total Belgium				16,374,036
China  |  2.9%
Industrial and Commercial Bank of
China, Ltd., Class H		7,709,800		6,327,094
Yingde Gases Group Co.		3,186,500		3,260,863
Total China				9,587,957
Denmark  |  1.5%
Novo Nordisk A/S, Class B		78,200		5,003,456
Egypt  |  2.1%
Commercial International Bank		321,100		3,193,347
Eastern Tobacco		173,920		3,611,983
Total Egypt				6,805,330
Finland  |  2.2%
Sampo Oyj, A Shares		305,810		7,421,888
France  |  10.7%
BNP Paribas SA		59,183		4,670,345
Cap Gemini SA		69,300		3,138,976
Sanofi-Aventis		167,100		13,098,420
Societe Generale		112,310		7,771,004
Thales SA		77,960		3,995,102
Valeo SA (a)		77,900		2,708,625
Total France				35,382,472
Germany  |  5.4%
Bayerische Motoren Werke AG		112,900		5,132,611
Daimler AG		92,840		4,960,162
SAP AG		163,000		7,687,724
Total Germany				17,780,497

Description	Shares		Value
Hong Kong  |  3.5%
Esprit Holdings, Ltd.		1,007,900	$	6,633,489
Kerry Properties, Ltd.		966,000		4,877,629
Total Hong Kong				11,511,118
India  |  1.4%
Idea Cellular, Ltd. (a)		3,797,870		4,687,905
Ireland  |  2.4%
C&C Group PLC		751,100		3,230,192
CRH PLC		166,300		4,545,801
Total Ireland				7,775,993
Italy  |  1.8%
Prysmian SpA		342,591		5,996,952
Japan  |  8.2%
Benesse Holdings, Inc.		67,500		2,822,734
Canon, Inc.		216,400		9,148,323
Don Quijote Co., Ltd.		203,300		4,910,997
Fanuc, Ltd.		63,600		5,913,866
Secom Co., Ltd.		92,800		4,389,436
Total Japan				27,185,356
Netherlands  |  1.4%
ASM International NV (a)		183,560		4,618,393
Norway  |  2.8%
Aker Solutions ASA		717,600		9,320,441
Russia  |  3.7%
Gazprom OAO Sponsored ADR		152,613		3,804,272
Sberbank		3,075,000		8,600,031
Total Russia				12,404,303
South Africa  |  3.7%
MTN Group, Ltd.		340,340		5,414,591
Naspers, Ltd., N Shares		166,280		6,747,825
Total South Africa				12,162,416
Switzerland  |  6.6%
Credit Suisse Group AG		93,980		4,628,622
Julius Baer Group Ltd.		150,002		5,238,906
Novartis AG		111,800		6,091,113
UBS AG (a)		379,770		5,833,996
Total Switzerland				21,792,637

The accompanying notes are an integral part of these financial statements.

40Annual Report

Description	Shares		Value
Lazard International Strategic Equity Portfolio (concluded)
Turkey  |  1.7%
Turkiye Garanti Bankasi AS		1,314,400	$	5,582,934
United Kingdom  |  27.2%
Barclays PLC		1,445,580		6,370,206
BG Group PLC		315,240		5,645,250
British Airways PLC (a)		1,742,820		5,199,229
British American Tobacco PLC		321,528		10,430,562
Cairn Energy PLC (a)		635,750		3,388,023
GlaxoSmithKline PLC		273,800		5,799,951
IG Group Holdings PLC		913,950		5,563,188
Informa PLC		1,378,647		7,052,573
International Power PLC		1,065,580		5,272,289
Lloyds Banking Group PLC (a)		10,902,582		8,752,524
Man Group PLC		839,380		4,128,972
Michael Page International PLC		874,550		5,302,503
Prudential PLC		311,510		3,173,372
Taylor Wimpey PLC (a)		7,125,069		4,467,959
Unilever PLC		299,664		9,592,003
Total United Kingdom				90,138,604

Description	Shares		Value
Total Common Stocks
(Identified cost $286,862,717)			$	317,099,590
Preferred Stock  |  1.5%
Brazil  |  1.5%
Banco Bradesco SA
(Identified cost $3,612,244)		231,500		5,010,216
Short-Term Investment  |  2.3%
State Street Institutional Treasury
Money Market Fund
(Identified cost $7,677,148)		7,677,148		7,677,148
Total Investments  |  99.6%
(Identified cost $298,152,109) (b)			$	329,786,954
Cash and Other Assets in
Excess of Liabilities  |  0.4%				1,229,901
Net Assets  |  100.0%			$	331,016,855

The accompanying notes are an integral part of these financial statements.

Annual Report  41

Description	Shares		Value
Lazard International Small Cap Equity Portfolio
Common Stocks  |  99.2%
Australia  |  5.2%
ABC Learning Centres, Ltd. (a), (d)		766,737	$	0
Cabcharge Australia, Ltd.		165,746		890,212
Fairfax Media, Ltd.		447,553		690,325
James Hardie Industries NV (a)		175,229		1,321,217
Macquarie Infrastructure Group		556,303		662,930
Total Australia				3,564,684
Austria  |  1.3%
Andritz AG		14,874		858,698
Belgium  |  3.9%
Arseus NV		79,263		914,384
EVS Broadcast Equipment SA		14,136		901,026
Telenet Group Holding NV (a)		30,937		877,696
Total Belgium				2,693,106
Finland  |  3.5%
KCI Konecranes Oyj		23,748		645,899
Sampo Oyj, A Shares		43,161		1,047,500
Vacon Oyj		17,580		672,509
Total Finland				2,365,908
France  |  4.0%
Neopost SA		12,115		1,000,953
Sechilienne-Sidec SA		18,594		748,949
Virbac SA		9,126		950,560
Total France				2,700,462
Germany  |  8.8%
Compugroup Holding AG (a)		122,391		1,305,714
CTS Eventim AG		28,533		1,393,007
Fielmann AG		12,708		935,610
Kontron AG		57,827		661,407
Pfeiffer Vacuum Technology AG		9,374		785,817
Wincor Nixdorf AG		13,741		937,287
Total Germany				6,018,842
Hong Kong  |  1.3%
Esprit Holdings, Ltd.		136,864		900,770

Description	Shares		Value
Ireland  |  4.8%
C&C Group PLC		165,562	$	712,019
DCC PLC		38,522		1,075,798
FBD Holdings PLC		73,584		727,856
Irish Life & Permanent PLC (a)		167,579		780,388
Total Ireland				3,296,061
Italy  |  2.2%
Ansaldo STS SpA		43,115		818,096
MARR SpA		80,204		681,247
Total Italy				1,499,343
Japan  |  25.7%
Ain Pharmaciez, Inc.		29,200		700,586
Asahi Holdings, Inc.		57,500		875,984
Daiseki Co., Ltd.		35,200		708,721
Daito Trust Construction Co., Ltd.		24,100		1,136,455
Don Quijote Co., Ltd.		44,600		1,077,375
JAFCO Co., Ltd.		26,700		641,772
JSR Corp.		45,600		924,350
Konami Corp.		48,000		855,996
Kurita Water Industries, Ltd.		14,900		465,530
Megane Top Co., Ltd.		60,400		656,350
Misumi Group, Inc.		45,500		774,865
Nomura Research Institute, Ltd.		29,400		575,861
Ohara, Inc.		52,200		887,439
Roland DG Corp.		45,800		569,335
Sankyo Co., Ltd.		10,900		542,974
Santen Pharmaceutical Co., Ltd.		21,200		677,866
Shinko Plantech Co., Ltd.		87,600		882,937
Suruga Bank, Ltd.		122,300		1,060,829
Sysmex Corp.		24,700		1,289,185
Unicharm Petcare Corp.		24,600		752,319
Union Tool Co.		23,600		617,685
USS Co., Ltd.		13,520		821,003
Total Japan				17,495,417
Netherlands  |  5.7%
ASM International NV (a)		41,463		1,043,214
Fugro NV		24,077		1,374,964
Koninklijke Vopak NV (a)		9,364		739,810
Unit 4 Agresso NV (a)		30,223		712,354
Total Netherlands				3,870,342

The accompanying notes are an integral part of these financial statements.

42  Annual Report

Description	Shares		Value
Lazard International Small Cap Equity Portfolio (concluded)
Norway  |  4.4%
Kongsberg Gruppen ASA		69,740	$	1,055,402
Prosafe Production Public, Ltd. (a)		329,528		705,966
TGS Nopec Geophysical Co. ASA (a)		67,720		1,222,173
Total Norway				2,983,541
Singapore  |  1.5%
Ezra Holdings, Ltd.		652,500		1,042,782
Spain  |  2.3%
Indra Sistemas SA		35,761		841,244
Tecnicas Reunidas SA		12,622		722,033
Total Spain				1,563,277
Sweden  |  7.3%
Duni AB		95,640		780,718
Elekta AB, B Shares		58,100		1,384,664
Getinge AB, B Shares		46,910		890,225
Indutrade AB		34,720		653,906
Loomis AB, B Shares		71,407		779,374
ORC Software AB		26,491		492,281
Total Sweden				4,981,168
Switzerland  |  4.7%
Burckhardt Compression Holding AG		3,979		712,088
Swissquote Group Holding SA		26,827		1,336,320
Tecan AG		15,330		1,156,733
Total Switzerland				3,205,141

Description	Shares		Value
United Kingdom  |  12.6%
Abcam PLC		56,286	$	868,138
Charter International PLC		67,105		775,581
Chemring Group PLC		29,722		1,398,641
Dignity PLC		97,437		949,442
Hampson Industries PLC		600,579		649,243
Healthcare Locums PLC		289,078		1,293,682
IG Group Holdings PLC		219,737		1,337,533
Intertek Group PLC		64,665		1,302,031
Sepura, Ltd.		1		1
Total United Kingdom				8,574,292
Total Common Stocks
(Identified cost $66,028,741)				67,613,834
Preferred Stock  |  1.3%
Germany  |  1.3%
Fuchs Petrolub AG
(Identified cost $662,876)		9,423		875,062
Short-Term Investment  |  0.5%
State Street Institutional Treasury
Money Market Fund
(Identified cost $384,044)		384,044		384,044
Total Investments  |  101.0%
(Identified cost $67,075,661) (b)			$	68,872,940
Liabilities in Excess of Cash and
Other Assets  |  (1.0)%				(709,754	)
Net Assets  |  100.0%			$	68,163,186

The accompanying notes are an integral part of these financial statements.

Annual Report  43

Description	Shares		Value
Lazard Global Listed Infrastructure Portfolio
Short-Term Investment  |  80.7%
State Street Institutional Treasury
Money Market Fund
(Identified cost $100,000)		100,000	$	100,000

Description	Value
Total Investment | 80.7%
(Identified cost $100,000) (b)	$	100,000
Cash and Other Assets in
Excess of Liabilities  |  19.3%		23,895
Net Assets | 100.0%	$	123,895

The accompanying notes are an integral part of these financial statements.

44  Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio
Common Stocks  |  92.1%
Brazil  |  14.3%
Banco do Brasil SA		22,928,600	$	386,635,539
Cielo SA		40,032,700		348,909,538
Companhia de Concessoes Rodoviarias		6,395,300		145,765,138
Companhia Energetica de Minas
Gerais SA Sponsored ADR		5,283,299		95,416,380
Natura Cosmeticos SA		6,864,700		143,057,055
Redecard SA		24,053,730		396,352,472
Souza Cruz SA		6,153,165		202,582,698
Total Brazil				1,718,718,820
Canada  |  1.3%
First Quantum Minerals, Ltd.		1,997,700		153,306,308
China  |  1.5%
NetEase.com, Inc. Sponsored ADR (a)		4,761,400		179,076,254
Egypt  |  3.7%
Commercial International Bank		10,675,560		106,168,686
Eastern Tobacco		2,795,847		58,064,356
Egyptian Company for Mobile Services		1,930,175		84,820,358
Orascom Construction Industries		4,460,719		198,976,235
Total Egypt				448,029,635
France  |  0.6%
CFAO SA		1,671,393		68,694,047
Hong Kong  |  0.8%
Shougang Concord International
Enterprises Co., Ltd.		389,771,900		96,651,557
India  |  4.3%
Bank of India		7,192,305		59,208,828
Infosys Technologies, Ltd.
Sponsored ADR		1,691,808		93,506,228
Jindal Steel & Power, Ltd.		7,909,000		119,505,028
Punjab National Bank, Ltd.		12,215,189		237,096,753
Total India				509,316,837

Description	Shares		Value
Indonesia  |  4.8%
PT Bank Mandiri Tbk		308,886,850	$	154,700,697
PT Indofood Sukses Makmur Tbk		76,437,100		28,663,983
PT Tambang Batubara Bukit Asam Tbk		45,193,500		83,053,118
PT Telekomunikasi Indonesia Tbk
Sponsored ADR		5,419,611		216,513,459
PT United Tractors Tbk		54,648,051		90,357,455
Total Indonesia				573,288,712
Israel  |  3.0%
Cellcom Israel, Ltd.		2,106,605		67,537,756
Delek Automotive Systems, Ltd.		6,469,468		71,624,497
Israel Chemicals, Ltd.		17,185,823		224,387,925
Total Israel				363,550,178
Malaysia  |  0.6%
British American Tobacco Malaysia
Berhad		5,343,200		66,629,971
PLUS Expressways Berhad		3,646,600		3,471,052
Total Malaysia				70,101,023
Mexico  |  7.0%
America Movil SAB de CV ADR,
Series L		5,058,600		237,653,028
Desarrolladora Homex SA
de CV ADR (a)		2,867,658		96,410,662
Fomento Economico Mexicano
SAB de CV Sponsored ADR		3,664,795		175,470,384
Grupo Mexico SAB de CV, Series B		42,681,093		97,420,688
Grupo Televisa SA Sponsored ADR		8,349,600		173,337,696
Kimberly-Clark de Mexico SAB de CV,
Series A		14,209,565		63,618,271
Total Mexico				843,910,729
Pakistan  |  0.7%
Oil & Gas Development Co., Ltd.		5,219,915		6,827,446
Pakistan Petroleum, Ltd.		34,146,493		76,585,297
Total Pakistan				83,412,743
Philippines  |  2.5%
Philippine Long Distance Telephone Co.
Sponsored ADR		5,208,350		295,157,195

The accompanying notes are an integral part of these financial statements.

Annual Report  45

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio (concluded)
Russia  |  8.2%
Magnit OAO GDR (e)		6,328,910	$	100,313,224
Mobile TeleSystems Sponsored ADR		5,329,210		260,545,077
OAO LUKOIL Sponsored ADR		5,493,650		307,968,190
Oriflame Cosmetics SA SDR		1,438,221		85,752,755
TNK-BP Holding		69,117,148		118,765,723
Uralkali Sponsored GDR (a)		5,479,885		112,676,031
Total Russia				986,021,000
South Africa  |  15.2%
Kumba Iron Ore, Ltd.		4,871,019		199,540,551
Massmart Holdings, Ltd.		10,087,396		121,654,357
Murray & Roberts Holdings, Ltd.		27,608,517		172,509,185
Nedbank Group, Ltd.		16,343,418		273,039,818
Pretoria Portland Cement Co., Ltd.		28,714,933		134,564,911
Sanlam, Ltd.		101,360,750		310,971,114
Shoprite Holdings, Ltd.		9,852,199		86,793,630
Standard Bank Group, Ltd.		15,654,344		215,058,792
Tiger Brands, Ltd.		7,860,664		181,987,315
Truworths International, Ltd.		20,584,827		120,539,757
Total South Africa				1,816,659,430
South Korea  |  9.3%
Hite Brewery Co., Ltd. (a)		644,590		93,932,801
KT&G Corp.		3,698,224		204,352,744
NHN Corp. (a)		1,250,302		206,457,597
Samsung Electronics Co., Ltd.		226,553		154,731,844
Shinhan Financial Group Co., Ltd. (a)		7,315,720		271,659,693
Woongjin Coway Co., Ltd. (a)		5,381,795		177,438,853
Total South Korea				1,108,573,532
Taiwan  |  5.0%
Advanced Semiconductor
Engineering, Inc.		97,607,361		87,315,566
Hon Hai Precision Industry Co., Ltd.		42,552,711		200,176,737
HTC Corp.		11,944,350		135,938,675
Taiwan Semiconductor
Manufacturing Co., Ltd.		86,433,284		173,379,712
Total Taiwan				596,810,690
Thailand  |  1.7%
Banpu Public Co., Ltd.		6,523,100		113,259,151
Kasikornbank Public Co., Ltd.		32,745,800		85,285,471
Total Thailand				198,544,622

Description	Shares		Value
Turkey  |  7.6%
Akbank TAS		35,076,637	$	221,861,233
Koc Holding AS (a)		45,122,000		132,742,770
Turkcell Iletisim Hizmetleri AS		29,131,760		205,005,140
Turkiye Is Bankasi AS, C Shares		84,133,392		354,597,618
Total Turkey				914,206,761
Total Common Stocks
(Identified cost $9,025,824,998)				11,024,030,073
Preferred Stocks  |  3.4%
Brazil  |  3.4%
AES Tiete SA		2,858,902		32,781,606
Eletropaulo Metropolitana SA, B Shares		3,435,800		67,611,235
Fertilizantes Fosfatados SA (a)		5,113,300		48,148,448
Usinas Siderurgicas de Minas Gerais SA,
A Shares		9,196,400		258,821,279
Total Brazil
(Identified cost $338,831,375)				407,362,568
Short-Term Investment  |  4.1%
State Street Institutional Treasury
Money Market Fund
(Identified cost $495,727,451)		495,727,451		495,727,451
	Principal
	Amount
Description	(000)		Value
Repurchase Agreement  |  0.1%
State Street Bank and Trust Co.,
0.00%, 01/04/10
(Dated 12/31/09, collateralized
by $13,365,000 United States
Treasury Bill, 0.00%, 05/27/10,
with a value of $13,355,645)
Proceeds of $13,093,000
(Identified cost $13,093,000)	$	13,093		13,093,000
Total Investments  |  99.7%
(Identified cost $9,873,476,824) (b)			$	11,940,213,092
Cash and Other Assets in
Excess of Liabilities  |  0.3%				35,781,522
Net Assets  |  100.0%			$	11,975,994,614

The accompanying notes are an integral part of these financial statements.

46  Annual Report

Description	Shares		Value
Lazard Developing Markets Equity Portfolio
Common Stocks  |  95.1%
Brazil  |  17.3%
Banco Bradesco SA Sponsored ADR		45,741	$	1,000,356
Cia Hering		63,650		1,064,899
Cyrela Brazil Realty SA		85,100		1,179,453
Fibria Celulose SA Sponsored ADR (a)		41,674		951,834
Itau Unibanco Holding SA ADR		39,341		898,549
Lojas Renner SA		30,230		674,054
MRV Engenharia e Participacoes SA		121,830		972,526
Net Servicos de Comunicacao SA ADR		64,640		874,579
Petroleo Brasileiro SA Sponsored ADR		20,990		889,766
Tivit Terceirizacao de Tecnologia e
Servicos SA		71,730		653,804
Totvs SA		13,050		878,184
Ultrapar Participacoes SA Sponsored ADR		18,729		878,390
Total Brazil				10,916,394
China   |  11.4%
China Construction Bank Corp.		1,122,100		955,112
China Merchants Bank Co., Ltd., Class H		401,510		1,041,596
China Mobile, Ltd. Sponsored ADR		16,377		760,384
China National Materials Co., Ltd.		1,508,740		1,113,638
China Petroleum & Chemical Corp. ADR		10,930		962,605
Golden Eagle Retail Group, Ltd.		329,700		665,349
NetEase.com, Inc. Sponsored ADR (a)		20,870		784,921
Parkson Retail Group, Ltd.		519,200		909,481
Total China				7,193,086
Columbia  |  1.0%
Bancolombia SA Sponsored ADR		13,305		605,511
Egypt  |  1.6%
Commercial International Bank
Sponsored GDR		99,203		985,851
Hong Kong  |  3.5%
AAC Acoustic Technologies Holdings, Inc.		560,200		925,812
China State Construction International
Holdings, Ltd.		3,014,600		1,261,848
Total Hong Kong				2,187,660
Hungary  |  1.6%
MOL Hungarian Oil and Gas Nyrt. (a)		11,040		984,833

Description	Shares		Value
India  |  3.1%
HDFC Bank, Ltd. ADR		7,030	$	914,462
ICICI Bank, Ltd. Sponsored ADR		28,110		1,060,028
Total India				1,974,490
Indonesia  |  3.3%
PT Bank Rakyat Indonesia		1,282,700		1,036,447
PT Perusahaan Gas Negara		2,528,210		1,044,146
Total Indonesia				2,080,593
Kazakhstan  |  3.8%
Halyk Savings Bank of Kazakhstan
JSC GDR (a)		102,810		975,743
KazMunaiGas Exploration Production GDR		23,804		592,298
Zhaikmunai LP GDR (a)		100,717		851,422
Total Kazakhstan				2,419,463
Luxembourg  |  1.0%
Millicom International Cellular SA		8,763		646,447
Mexico  |  3.3%
Corporacion GEO SAB de CV, Series B (a)		403,836		1,072,410
Grupo Financiero Banorte SAB de CV		283,212		1,021,399
Total Mexico				2,093,809
Pakistan  |  1.8%
Oil & Gas Development Co., Ltd.		838,740		1,097,039
Peru  |  1.6%
Credicorp, Ltd.		13,375		1,030,142
Philippines  |  1.9%
SM Investments Corp.		168,620		1,180,074
Qatar  |  2.2%
Qatar Electricity & Water Co.		49,520		1,358,268
Russia  |  9.6%
Eurasia Drilling Co., Ltd. GDR (e)		50,949		868,878
Gazprom OAO Sponsored ADR		39,960		1,018,980
Rosneft Oil Co. GDR		121,684		1,040,443
Sberbank		507,010		1,417,984
Uralkali Sponsored GDR (a)		37,249		765,905
X5 Retail Group NV GDR (a)		29,290		933,944
Total Russia				6,046,134

The accompanying notes are an integral part of these financial statements.

Annual Report  47

Description	Shares		Value
Lazard Developing Markets Equity Portfolio (concluded)
South Africa  |  7.3%
Exxaro Resources, Ltd. Sponsored ADR		76,100	$	1,057,790
Gold Fields, Ltd. Sponsored ADR		36,579		479,551
MTN Group, Ltd.		60,667		965,173
Murray & Roberts Holdings, Ltd.		143,428		896,196
Standard Bank Group, Ltd.		88,751		1,219,258
Total South Africa				4,617,968
South Korea  |  2.1%
LG Dacom Corp.		22,610		344,306
Samsung Engineering Co., Ltd. (a)		10,710		987,846
Total South Korea				1,332,152
Taiwan  |  8.8%
Global Unichip Corp.		123,470		649,576
Hon Hai Precision Industry Co., Ltd. GDR		112,343		1,068,946
Hung Poo Real Estate Development Corp.		588,000		936,736
Tripod Technology Corp.		385,000		1,291,571
Wistron Corp. GDR		29,624		575,150
Yuanta Financial Holding Co., Ltd.		1,379,000		1,005,068
Total Taiwan				5,527,047
Thailand  |  0.9%
PTT Exploration & Production
Public Co., Ltd.		131,990		581,960

Description	Shares		Value
Turkey  |  4.5%
BIM Birlesik Magazalar AS		19,530	$	905,394
Tofas Turk Otomobil Fabrikasi AS		208,461		654,578
Turkiye Garanti Bankasi AS ADR		295,060		1,255,185
Total Turkey				2,815,157
United Kingdom  |  2.4%
Cairn Energy PLC (a)		277,800		1,480,445
United States  |  1.1%
NII Holdings, Inc. (a)		21,392		718,343
Total Common Stocks
(Identified cost $51,955,168)				59,872,866
Short-Term Investment  |  4.6%
State Street Institutional Treasury
Money Market Fund
(Identified cost $2,885,319)		2,885,319		2,885,319
Total Investments  |  99.7%
(Identified cost $54,840,487) (b)			$	62,758,185
Cash and Other Assets in
Excess of Liabilities  |  0.3%				219,434
Net Assets  |  100.0%			$	62,977,619

The accompanying notes are an integral part of these financial statements.

48  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio
Corporate Bonds  |  93.3%
Aerospace & Defense  |  1.2%
BE Aerospace, Inc.,
8.50%, 07/01/18	$	525	$	556,500
Bombardier, Inc.,
8.00%, 11/15/14 (e)		550		571,313
				1,127,813
Apparel & Textiles  |  0.6%
Levi Strauss & Co.,
9.75%, 01/15/15		550		577,500
Automotive  |  3.3%
ArvinMeritor, Inc.,
8.125%, 09/15/15		215		205,325
Ford Motor Credit Co.,
7.00%, 10/01/13		1,250		1,248,117
GMAC LLC,
6.75%, 12/01/14		165		156,750
Navistar International Corp.,
8.25%, 11/01/21		825		845,625
The Goodyear Tire & Rubber Co.,
10.50%, 05/15/16		550		607,750
				3,063,567
Building Materials  |  3.6%
Legrand SA,
8.50%, 02/15/25		925		966,581
Masco Corp.,
6.125%, 10/03/16		900		857,647
Owens Corning, Inc.,
9.00%, 06/15/19		725		808,505
USG Corp.,
9.50%, 01/15/18		675		695,250
				3,327,983
Cable Television  |  5.6%
Cablevision Systems Corp.,
8.00%, 04/15/12		725		766,688
Cequel Communications Holdings LLC,
8.625%, 11/15/17 (e)		900		909,000
EchoStar DBS Corp.,
6.625%, 10/01/14		810		817,087

Description	Principal Amount (000)		Value
Kabel Deutschland GmbH,
10.625%, 07/01/14	$	350	$	365,750
Mediacom Broadband LLC,
8.50%, 10/15/15		875		883,750
Videotron Ltee,
6.875%, 01/15/14		525		527,625
Virgin Media Finance PLC,
9.125%, 08/15/16		900		948,375
				5,218,275
Chemicals  |  1.7%
Momentive Performance Materials, Inc.,
9.75%, 12/01/14		275		264,687
Mosaic Global Holdings, Inc.,
7.30%, 01/15/28		775		815,635
NOVA Chemicals Corp.,
6.50%, 01/15/12		262		263,310
Terra Capital, Inc.,
7.75%, 11/01/19 (e)		275		294,250
				1,637,882
Computer Services  |  0.6%
SunGard Data Systems, Inc.,
10.25%, 08/15/15		524		558,060
Diversified  |  2.8%
General Cable Corp.,
7.125%, 04/01/17		439		431,318
Ingersoll-Rand Global Holding Co., Ltd.,
9.50%, 04/15/14		550		657,215
Leucadia National Corp.,
7.00%, 08/15/13		950		953,562
SPX Corp.,
7.625%, 12/15/14		535		551,050
				2,593,145
Electric Generation  |  2.9%
AES Corp.,
7.75%, 03/01/14		900		913,500
Edison Mission Energy,
7.50%, 06/15/13		675		634,500
NRG Energy, Inc.,
7.375%, 01/15/17		600		601,500
RRI Energy, Inc.,
6.75%, 12/15/14		525		535,500
				2,685,000

The accompanying notes are an integral part of these financial statements.

Annual Report  49

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Electronics  |  0.5%
Freescale Semiconductor, Inc.,
8.875%, 12/15/14	$	225	$	206,438
NXP BV,
7.875%, 10/15/14		250		226,875
				433,313
Energy Exploration & Production  |  3.8%
Chesapeake Energy Corp.,
6.375%, 06/15/15		800		784,000
Mariner Energy, Inc.,
11.75%, 06/30/16		500		557,500
OPTI Canada, Inc.,
8.25%, 12/15/14		325		267,719
PetroHawk Energy Corp.,
9.125%, 07/15/13		900		940,500
Plains Exploration & Production Co.,
7.75%, 06/15/15		950		966,625
				3,516,344
Energy Services  |  2.4%
Compagnie Generale de Geophysique,
7.50%, 05/15/15		750		744,375
Pride International, Inc.,
7.375%, 07/15/14		525		542,062
Tesoro Corp.,
6.50%, 06/01/17		1,050		976,500
				2,262,937
Environmental  |  0.9%
Browning-Ferris Industries, Inc.,
7.40%, 09/15/35		775		855,124
Financial Services  |  0.0%
Finance One PLC,
0.00%, 01/03/10 (a), (d)		20,000		0
Morgan Guarantee Trust,
0.00%, 01/03/10 (a), (d)		10,569		0
				0
Food & Beverages  |  2.1%
Constellation Brands, Inc.,
7.25%, 05/15/17		700		709,625
Dean Foods Co.,
7.00%, 06/01/16		800		784,000
NBTY, Inc.,
7.125%, 10/01/15		475		476,188
				1,969,813

Description	Principal Amount (000)		Value
Forest & Paper Products  |  1.6%
Georgia-Pacific Corp.:
8.125%, 05/15/11	$	300	$	315,000
9.50%, 12/01/11		500		540,000
Smurfit Capital Funding PLC,
7.50%, 11/20/25		750		639,375
				1,494,375
Gaming  |  6.2%
Ameristar Casinos, Inc.,
9.25%, 06/01/14 (e)		700		726,250
Mandalay Resorts Group,
9.375%, 02/15/10		835		830,825
Mohegan Tribal Gaming Authority,
7.125%, 08/15/14		300		204,375
Peninsula Gaming LLC:
8.375%, 08/15/15 (e)		625		623,438
10.75%, 08/15/17 (e)		225		226,125
Penn National Gaming, Inc.,
8.75%, 08/15/19 (e)		825		843,562
Pinnacle Entertainment, Inc.,
8.625%, 08/01/17 (e)		800		816,000
Scientific Games Corp.,
7.875%, 06/15/16 (e)		525		527,625
Wynn Las Vegas LLC,
6.625%, 12/01/14		1,010		975,912
				5,774,112
Gas Distribution  |  4.7%
Copano Energy LLC,
7.75%, 06/01/18		700		701,750
El Paso Corp.,
7.00%, 06/15/17		650		644,665
Ferrellgas Partners LP,
8.75%, 06/15/12		684		692,550
Inergy LP,
8.75%, 03/01/15		525		539,437
Kinder Morgan, Inc.,
6.50%, 09/01/12		675		702,000
MarkWest Energy Partners LP,
8.50%, 07/15/16		500		508,750
The Williams Cos., Inc.,
8.75%, 03/15/32		550		658,169
				4,447,321

The accompanying notes are an integral part of these financial statements.

50  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Health Services  |  8.4%
Apria Healthcare Group, Inc., 11.25%, 11/01/14 (e)	$	550	$	603,625
Biomet, Inc., 10.00%, 10/15/17		425		461,656
Community Health Systems, Inc., 8.875%, 07/15/15		600		621,000
DaVita, Inc., 6.625%, 03/15/13		575		576,437
Fresenius US Finance II, Inc., 9.00%, 07/15/15 (e)		525		577,500
HCA, Inc., 9.25%, 11/15/16		925		993,219
Health Management Associates, Inc., 6.125%, 04/15/16		1,000		937,500
HealthSouth Corp., 10.75%, 06/15/16		515		560,062
Senior Housing Properties Trust, 7.875%, 04/15/15		179		175,868
Service Corp. International, 6.75%, 04/01/16		750		725,625
Tenet Healthcare Corp., 7.375%, 02/01/13		500		501,250
The Cooper Cos., Inc., 7.125%, 02/15/15		525		510,563
Ventas Realty LP, 6.50%, 06/01/16		650		627,250
				7,871,555
Hotels  |  1.9%
Host Hotels & Resorts, Inc., 7.125%, 11/01/13		850		863,813
Wyndham Worldwide Corp., 6.00%, 12/01/16		1,000		931,594
				1,795,407
Leisure & Entertainment  |  2.2%
AMC Entertainment, Inc., 8.00%, 03/01/14		497		474,635
Royal Caribbean Cruises, Ltd.:
7.25%, 06/15/16		300		289,875
8.00%, 05/15/10		400		407,000
Speedway Motorsports, Inc., 6.75%, 06/01/13		875		870,625
				2,042,135

Description	Principal Amount (000)		Value
Machinery  |  1.6%
Case New Holland, Inc.:
7.125%, 03/01/14	$	650	$	659,750
7.75%, 09/01/13 (e)		200		204,500
Terex Corp.,
10.875%, 06/01/16		550		613,250
				1,477,500
Media  |  4.2%
CBS Corp.,
8.875%, 05/15/19		700		837,427
Clear Channel Worldwide Holdings, Inc.,
9.25%, 12/15/17 (e)		1,000		1,030,000
Interpublic Group of Cos., Inc.,
6.25%, 11/15/14		600		576,000
ION Media Networks, Inc.,
11.00%, 07/31/13 (a), (f)		25		2
Lamar Media Corp.,
7.25%, 01/01/13		600		598,500
WMG Acquisition Corp.,
9.50%, 06/15/16 (e)		875		937,344
				3,979,273
Metals & Mining  |  3.6%
Alcoa, Inc.,
5.72%, 02/23/19		650		628,440
Arch Western Finance LLC,
6.75%, 07/01/13		775		769,187
Century Aluminum Co.,
8.00%, 05/15/14		202		196,950
Freeport-McMoRan Copper & Gold, Inc.:
8.25%, 04/01/15		650		708,500
8.375%, 04/01/17		100		109,500
Massey Energy Co.,
6.875%, 12/15/13		1,000		998,750
				3,411,327
Packaging  |  1.8%
Owens-Brockway Glass Container, Inc.,
8.25%, 05/15/13		675		693,563
Reynolds Group DL Escrow, Inc.,
7.75%, 10/15/16 (e)		1,000		1,022,500
				1,716,063
Printing & Publishing  |  0.5%
Deluxe Corp.,
7.375%, 06/01/15		525		505,969

The accompanying notes are an integral part of these financial statements.

Annual Report  51

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Real Estate  |  1.4%
Forest City Enterprises, Inc.,
7.625%, 06/01/15	$	475	$	425,125
Icahn Enterprises LP:
7.125%, 02/15/13		500		510,000
8.125%, 06/01/12		350		357,000
				1,292,125
Restaurants  |  1.3%
Landry’s Restaurants, Inc.,
11.625%, 12/01/15 (e)		575		609,500
Wendy’s/Arby’s Restaurants LLC,
10.00%, 07/15/16		600		654,000
				1,263,500
Retail  |  4.3%
AutoNation, Inc.,
7.00%, 04/15/14		650		671,125
Ingles Markets, Inc.,
8.875%, 05/15/17		925		962,000
QVC, Inc.,
7.50%, 10/01/19 (e)		1,000		1,020,000
Saks, Inc.,
9.875%, 10/01/11		585		612,056
Stater Brothers Holdings, Inc.,
8.125%, 06/15/12		775		782,750
				4,047,931
Steel-Producers  |  1.8%
AK Steel Corp.,
7.75%, 06/15/12		625		631,250
Steel Dynamics, Inc.,
7.375%, 11/01/12		540		556,200
United States Steel Corp.,
6.05%, 06/01/17		475		453,467
				1,640,917
Support Services  |  4.1%
ARAMARK Corp.,
8.50%, 02/01/15		600		618,000
Avis Budget Car Rental LLC:
7.625%, 05/15/14		640		608,000
7.75%, 05/15/16		110		102,850
Corrections Corp. of America,
6.25%, 03/15/13		675		678,375

Description	Principal Amount (000)		Value
Expedia, Inc.,
8.50%, 07/01/16	$	375	$	405,469
Hertz Corp.,
8.875%, 01/01/14		650		664,625
Ticketmaster Entertainment, Inc.,
10.75%, 08/01/16		350		377,125
West Corp.,
11.00%, 10/15/16		350		365,750
				3,820,194
Telecommunications  |  10.1%
Cincinnati Bell, Inc.,
8.25%, 10/15/17		850		862,750
Citizens Communications Co.,
6.25%, 01/15/13		1,000		1,002,500
Cricket Communications, Inc.,
7.75%, 05/15/16		750		748,125
Crown Castle International Corp.,
9.00%, 01/15/15		575		612,375
Intelsat Corp.,
9.25%, 08/15/14		375		385,312
Intelsat Jackson Holdings, Ltd.,
11.25%, 06/15/16		350		378,875
Level 3 Financing, Inc.,
9.25%, 11/01/14		650		614,250
Qwest Corp.,
7.875%, 09/01/11		800		838,000
Rogers Wireless Communications, Inc.,
9.625%, 05/01/11		1,000		1,097,267
Sprint Capital Corp.,
6.90%, 05/01/19		1,225		1,127,000
Wind Acquisition Finance SA,
11.75%, 07/15/17 (e)		800		874,000
Windstream Corp.,
8.625%, 08/01/16		900		915,750
				9,456,204
Transportation  |  1.6%
Kansas City Southern Railway Co.,
13.00%, 12/15/13		500		580,000
Stena AB,
7.50%, 11/01/13		975		938,438
				1,518,438
Total Corporate Bonds
(Identified cost $83,599,396)				87,381,102

The accompanying notes are an integral part of these financial statements.

52  Annual Report

Description	Shares		Value
Lazard U.S. High Yield Portfolio (concluded)
Preferred Stock  |  0.0%
Media  |  0.0%
ION Media Networks, Inc.,
12.00%, 08/31/13
(Identified cost $1,551) (a), (f)		1	$	0
Warrant  |  0.0%
Cable Television  |  0.0%
Ono Finance PLC,
03/16/2011
(Identified cost $64,841) (a), (e)		470		5

Description	Shares		Value
Short-Term Investment  |  5.1%
State Street Institutional Treasury
Money Market Fund
(Identified cost $4,801,902)		4,801,902	$	4,801,902
Total Investments  |  98.4%
(Identified cost $88,467,690) (b)			$	92,183,009
Cash and Other Assets in Excess of Liabilities  |  1.6%				1,511,081
Net Assets  |  100.0%			$	93,694,090

The accompanying notes are an integral part of these financial statements.

Annual Report  53

Description	Shares		Value
Lazard Capital Allocator Opportunistic Strategies Portfolio
Exchange-Traded Funds  |  94.1%
ETFS Natural Gas (a)		6,800,000	$	3,873,280
First Trust ISE-Revere Natural Gas
Index Fund		172,300		3,030,757
iPath S&P 500 VIX Short-Term
Futures ETN (a)		113,500		3,866,945
iShares Barclays 20+ Year Treasury
Bond Fund		151,200		13,588,344
iShares Barclays MBS Bond Fund		159,900		16,955,796
iShares Dow Jones US Broker-Dealers
Index Fund		153,300		4,312,329
iShares iBoxx $ Investment Grade
Corporate Bond Fund		121,500		12,654,225
iShares JPMorgan USD Emerging
Markets Bond Fund		63,200		6,432,496
iShares MSCI All Country Asia ex-Japan
Index Fund		84,000		4,679,640
iShares MSCI Brazil Index Fund		58,700		4,379,607
iShares S&P Global 100 Index Fund		181,300		10,923,325
iShares S&P Global Consumer Staples
Index Fund		290,600		16,450,866
iShares S&P Global Healthcare Sector
Index Fund		134,400		6,990,144
iShares S&P Global Materials Index Fund		94,500		5,879,790
iShares S&P Global Utilities Index Fund		144,500		6,934,555
Market Vectors Agribusiness ETF		258,700		11,328,473
Market Vectors Nuclear Energy ETF		140,500		3,183,730
PowerShares Dynamic Oil & Gas
Services Portfolio		302,400		5,128,704

Description	Shares		Value
PowerShares Global Listed Private
Equity Portfolio		461,000	$	4,153,610
PowerShares Global Nuclear
Energy Portfolio		412,500		7,713,750
PowerShares Global Water Portfolio		587,100		10,661,736
SPDR Barclays Capital Aggregate
Bond ETF		210,000		11,484,900
SPDR Gold Trust (a)		113,300		12,158,223
Vanguard Information Technology
Index ETF		247,500		13,567,950
Total Exchange-Traded Funds
(Identified cost $186,025,639)				200,333,175
Closed-End Management Investment
Company  |  3.9%
MFS Multimarket Income Trust
(Identified cost $7,709,099)		1,265,000		8,222,500
Short-Term Investment | 1.6%
State Street Institutional Treasury
Money Market Fund
(Identified cost $3,331,565)		3,331,565		3,331,565
Total Investments  |  99.6%
(Identified cost $197,066,303) (b)			$	211,887,240
Cash and Other Assets in
Excess of Liabilities  |  0.4%				907,816
Net Assets  |  100.0%			$	212,795,056

The accompanying notes are an integral part of these financial statements.

54  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2009

(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 (depreciation) are as follows:

Portfolio	Aggregate Cost		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
U.S. Equity Value	$	8,396,625	$	853,810		$	501,403	$	352,407
U.S. Strategic Equity		66,264,270		9,566,538			727,683		8,838,855
U.S. Mid Cap Equity		190,663,177		26,668,597			4,380,668		22,287,929
U.S. Small-Mid Cap Equity		60,334,740		15,490,220			234,867		15,255,353
International Equity		149,566,558		15,420,736			7,430,614		7,990,122
International Equity Select		8,032,531		670,169			377,721		292,448
International Strategic Equity		300,137,762		42,116,821			12,467,629		29,649,192
International Small Cap Equity		70,146,494		6,673,541			7,947,095		(1,273,554	)
Global Listed Infrastructure		100,000		—			—		—
Emerging Markets Equity		10,155,353,853		1,865,976,254			81,117,015		1,784,859,239
Developing Markets Equity		55,170,704		7,847,429			259,948		7,587,481
U.S. High Yield		88,467,690		5,179,912			1,464,593		3,715,319
Capital Allocator Opportunistic Strategies		199,057,200		17,251,774			4,421,734		12,830,040

(c)	Received from in-kind subscription; security valued at zero.
(d)	Bankrupt issuer; security valued at zero; principal amount denominated in respective country’s currency.
(e)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2009, these securities amounted to 0.8%, 1.4% and 13.3% of net assets of Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio and Lazard U.S. High Yield Portfolio, respectively, and are considered to be liquid.
(f)	Issue in default.

Security Abbreviations:
ADR	—   American Depositary Receipt
ETF	—   Exchange-Traded Fund
ETN	—   Exchange-Traded Note
GDR	—  Global Depositary Receipt
REIT	—   Real Estate Investment Trust
SDR	—   Swedish Depositary Receipt

The accompanying notes are an integral part of these financial statements.

Annual Report  55

Portfolio holdings by industry (as percentage of net assets), for those Portfolios previously presented by country:

Industry	Lazard International Equity Portfolio			Lazard International Equity Select Portfolio		Lazard International Strategic Equity Portfolio		Lazard International Small Cap Equity Portfolio		Lazard Emerging Markets Equity Portfolio		Lazard Developing Markets Equity Portfolio
Agriculture		—	%	0.5	%	—	%	—	%	3.2	%		1.2	%
Alcohol & Tobacco		3.7		8.2		8.1		1.0		5.2			—
Apparel & Textiles		—		—		—		—		—			1.7
Automotive		3.1		—		3.9		—		1.1			1.0
Banking		16.4		15.6		17.3		1.5		17.5			24.5
Building Materials		—		—		—		—		1.1			—
Cable Television		—		—		2.0		—		—			1.4
Chemicals		—		—		1.0		2.7		—			—
Commercial Services		5.0		1.3		2.9		14.9		4.1			—
Computer Software		1.5		0.9		2.3		1.8		3.2			2.6
Construction & Engineering		1.1		—		2.8		3.6		3.1			5.0
Consumer Products		—		—		—		2.1		3.4			—
Electric		1.0		—		1.6		—		1.6			2.2
Energy		—		—		—		1.1		—			—
Energy Exploration & Production		0.8		0.5		1.0		—		0.7			7.3
Energy Integrated		6.8		9.5		2.8		1.3		5.2			9.1
Energy Services		—		—		—		4.8		—			1.4
Financial Services		4.1		8.1		7.3		4.0		8.2			1.6
Food & Beverages		4.8		3.8		2.9		2.1		3.2			—
Forest & Paper Products		—		—		—		1.1		0.5			1.5
Gas Utilities		—		—		—		—		—			1.7
Health Services		—		—		—		3.3		—			—
Housing		3.0		1.1		2.7		3.6		0.8			—
Insurance		4.9		6.8		4.9		2.6		—			—
Leisure & Entertainment		2.4		0.5		3.0		1.0		1.5			—
Manufacturing		6.5		4.1		4.8		15.5		1.6			1.8
Medical Products		—		—		—		8.3		—			—
Metals & Mining		2.5		2.7		2.1		—		6.9			2.4
Pharmaceutical & Biotechnology		10.1		10.7		9.1		3.7		—			—
Real Estate		2.2		2.3		1.5		—		—			6.6
Retail		3.2		5.9		3.5		6.3		3.6			8.4
Semiconductors & Components		4.3		6.7		2.8		2.5		3.5			4.6
Technology		—		—		0.9		3.5		0.8			1.0
Technology Hardware		—		0.8		1.4		3.3		2.8			2.6
Telecommunications		7.0		8.5		3.1		1.3		11.4			5.5
Transportation		2.9		—		1.6		3.6		1.3			—
Subtotal		97.3		98.5		97.3		100.5		95.5			95.1
Short-Term Investments		—		—		2.3		0.5		4.1			4.6
Repurchase Agreements		2.0		—		—		—		0.1			—
Total Investments		99.3	%	98.5	%	99.6	%	101.0	%	99.7	%		99.7	%

The accompanying notes are an integral part of these financial statements.

56Annual Report

(This Page Intentionally Left Blank)

Annual Report  57

   The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2009	Lazard U.S. Equity Value Portfolio			Lazard U.S. Strategic Equity Portfolio
ASSETS
Investments in securities, at value	$	8,749,032		$	75,103,125
Cash		—			—
Foreign currency		—			—
Receivables for:
Capital stock sold		10,000			62,582
Dividends and interest		12,767			68,904
Investments sold		—			83,432
Amount due from Investment Manager (Note 3)		6,426			—
Total assets		8,778,225			75,318,043
LIABILITIES
Payables for:
Foreign currency due to Custodian		—			—
Management fees		—			39,144
Accrued distribution fees		68			1,881
Accrued directors’ fees		17			143
Investments purchased		—			160,684
Capital stock redeemed		—			72
Line of credit outstanding		—			—
Other accrued expenses and payables		14,044			18,816
Total liabilities		14,129			220,740
Net assets	$	8,764,096		$	75,097,303
NET ASSETS
Paid in capital	$	11,548,483		$	94,261,143
Undistributed (distributions in excess of) net investment income		(18,745	)		802,020
Accumulated net realized loss		(3,256,549	)		(29,172,659	)
Net unrealized appreciation on:
Investments		490,907			9,206,799
Foreign currency		—			—
Net assets	$	8,764,096		$	75,097,303
Institutional Shares
Net assets	$	8,463,768		$	66,152,692
Shares of capital stock outstanding*		982,317			8,247,044
Net asset value, offering and redemption price per share	$	8.62		$	8.02
Open Shares
Net assets	$	300,328		$	8,944,611
Shares of capital stock outstanding*		34,649			1,114,686
Net asset value, offering and redemption price per share	$	8.67		$	8.02
Cost of investments in securities	$	8,258,125		$	65,896,326
Cost of foreign currency	$	—		$	—

*  $0.001 par value 2,350,000,000 shares authorized for the Portfolios in total.

The accompanying notes are an integral part of these financial statements.

58  Annual Report

Lazard U.S. Mid Cap Equity Portfolio			Lazard U.S. Small-Mid Cap Equity Portfolio			Lazard International Equity Portfolio			Lazard International Equity Select Portfolio				Lazard International Strategic Equity Portfolio
$	212,951,106		$	75,590,093		$	157,556,680			$	8,324,979			$	329,786,954
	—			537			10,260				—				—
	—			—			21,048				—				194,837
	388,703			29,895			49,424				3,251				1,040,893
	233,026			40,869			460,956				32,992				1,051,536
	—			205,906			939,265				429,585				—
	—			—			—				21,091				—
	213,572,835			75,867,300			159,037,633				8,811,898				332,074,220
	—			—			—				10,849				—
	134,820			38,159			101,314				—				202,877
	14,977			3,979			4,188				1,169				3,937
	409			138			311				19				620
	—			223,038			154,562				—				612,915
	390,228			6,552			152,097				—				164,928
	—			—			—				320,000				—
	28,123			22,545			35,516				24,303				72,088
	568,557			294,411			447,988				356,340				1,057,365
$	213,004,278		$	75,572,889		$	158,589,645			$	8,455,558			$	331,016,855
$	313,187,090		$	82,237,246		$	190,205,507			$	12,358,863			$	396,673,934
	51,803			1			3,226,533				207,352				1,227,452
	(127,456,221	)		(22,659,547	)		(44,644,965	)			(4,829,290	)			(98,563,424	)
	27,221,606			15,995,189			9,796,259				718,539				31,616,656
	—			—			6,311				94				62,237
$	213,004,278		$	75,572,889		$	158,589,645			$	8,455,558			$	331,016,855
$	143,267,184		$	56,041,575		$	139,069,801			$	3,925,248			$	311,570,470
	13,891,697			4,750,537			10,584,664				509,472				33,103,967
$	10.31		$	11.80		$	13.14			$	7.70			$	9.41
$	69,737,094		$	19,531,314		$	19,519,844			$	4,530,310			$	19,446,385
	6,852,067			1,689,218			1,474,744				586,579				2,061,818
$	10.18		$	11.56		$	13.24			$	7.72			$	9.43
$	185,729,500		$	59,594,904		$	147,760,421			$	7,606,440			$	298,152,109
$	—		$	—		$	21,067			$	—			$	194,754

Annual Report  59

December 31, 2009	Lazard International Small Cap Equity Portfolio				Lazard Global Listed Infrastructure Portfolio
ASSETS
Investments in securities, at value		$	68,872,940			$	100,000
Cash			—				—
Foreign currency			586				—
Receivables for:
Capital stock sold			46,395				23,899
Dividends and interest			166,973				—
Investments sold			—				—
Amount due from Investment Manager (Note 3)			—				4,996
Total assets			69,086,894				128,895
LIABILITIES
Payables for:
Management fees			54,545				—
Accrued distribution fees			6,259				—
Accrued directors’ fees			135				—
Investments purchased			—				—
Capital stock redeemed			822,666				—
Dividends			—				—
Other accrued expenses and payables			40,103				5,000
Total liabilities			923,708				5,000
Net assets		$	68,163,186			$	123,895
NET ASSETS
Paid in capital		$	148,537,143			$	123,895
Undistributed (distributions in excess of) net investment income			983,995				—
Accumulated net realized gain (loss)			(83,155,811	)			—
Net unrealized appreciation (depreciation) on:
Investments			1,797,279				—
Foreign currency			580				—
Net assets		$	68,163,186			$	123,895
Institutional Shares
Net assets		$	40,243,340			$	73,897
Shares of capital stock outstanding*			6,021,391				7,390
Net asset value, offering and redemption price per share		$	6.68			$	10.00
Open Shares
Net assets		$	27,919,846			$	49,998
Shares of capital stock outstanding*			4,168,917				5,000
Net asset value, offering and redemption price per share		$	6.70			$	10.00
Cost of investments in securities		$	67,075,661			$	100,000
Cost of foreign currency		$	599			$	—

* $0.001 par value 2,350,000,000 shares authorized for the Portfolios in total.

The accompanying notes are an integral part of these financial statements.

60  Annual Report

Lazard Emerging Markets Equity Portfolio			Lazard Developing Markets Equity Portfolio		Lazard U.S. High Yield Portfolio			Lazard Capital Allocator Opportunistic Strategies Portfolio
$	11,940,213,092		$	62,758,185	$	92,183,009			$	211,887,240
	2,129,223			—		—				—
	11,618,478			611,516		—				—
	103,861,395			169,705		185,687				720,642
	24,138,268			61,335		1,604,364				412,966
	20,857,113			—		—				—
	—			2,821		—				—
	12,102,817,569			63,603,562		93,973,060				213,020,848
	9,875,355			—		9,599				161,640
	717,873			7,934		1,273				3,900
	21,668			102		168				424
	78,287,327			572,743		—				—
	24,884,923			303		14,184				33,323
	—			—		230,128				—
	13,035,809			44,861		23,618				26,505
	126,822,955			625,943		278,970				225,792
$	11,975,994,614		$	62,977,619	$	93,694,090			$	212,795,056
$	11,621,131,023		$	53,014,775	$	115,657,629			$	236,716,760
	(121,241,529	)		12,031		(230,128	)			20,548
	(1,580,040,008	)		2,030,960		(25,448,730	)			(38,763,197	)
	2,056,686,242			7,917,698		3,715,319				14,820,937
	(541,114	)		2,155		—				8
$	11,975,994,614		$	62,977,619	$	93,694,090			$	212,795,056
$	8,497,340,761		$	20,002,431	$	87,568,234			$	195,939,285
	471,812,807			1,517,818		18,619,657				22,278,416
$	18.01		$	13.18	$	4.70			$	8.80
$	3,478,653,853		$	42,975,188	$	6,125,856			$	16,855,771
	190,254,536			3,258,336		1,295,343				1,914,353
$	18.28		$	13.19	$	4.73			$	8.80
$	9,873,476,824		$	54,840,487	$	88,467,690			$	197,066,303
$	11,577,662		$	609,685	$	—			$	—

Annual Report  61

   The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2009	Lazard U.S. Equity Value Portfolio			Lazard U.S. Strategic Equity Portfolio
Investment Income
Income
Dividends	$	188,900		$	1,512,794
Interest		47			256
Total investment income*		188,947			1,513,050
Expenses
Management fees		54,555			491,605
Custodian fees		56,166			58,425
Distribution fees (Open Shares)		567			18,976
Shareholders’ services		8,839			10,343
Administration fees		51,456			63,111
Shareholders’ reports		165			1,941
Registration fees		28,073			28,528
Professional services		50,861			52,326
Directors’ fees and expenses		401			3,667
Other		3,748			7,186
Total gross expenses		254,831			736,108
Management fees waived and expenses reimbursed		(162,664	)		(25,105	)
Administration fees waived		(18,750	)		—
Total net expenses		73,417			711,003
Net investment income (loss)		115,530			802,047
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Net realized gain (loss) on:
Investments**		(1,128,878	)		(7,129,841	)
Foreign currency		—			—
Net change in unrealized appreciation on:
Investments†		2,777,855			23,468,149
Foreign currency		—			—
Net realized and unrealized gain on investments and foreign currency		1,648,977			16,338,308
Net increase in net assets resulting from operations	$	1,764,507		$	17,140,355
*   Net of foreign withholding taxes of	$	—		$	—
**  Net of foreign capital gains taxes of	$	—		$	—
†   Includes net change in unrealized foreign capital gains taxes of	$	—		$	—

The accompanying notes are an integral part of these financial statements.

62  Annual Report

Lazard U.S. Mid Cap Equity Portfolio			Lazard U.S. Small-Mid Cap Equity Portfolio			Lazard International Equity Portfolio			Lazard International Equity Select Portfolio				Lazard International Strategic Equity Portfolio
$	3,259,795		$	596,143		$	4,561,206			$	319,547			$	9,147,514
	1,957			364			630				39				4,681
	3,261,752			596,507			4,561,836				319,586				9,152,195
	1,352,713			408,402			1,031,583				75,359				2,060,777
	69,488			80,287			133,560				83,037				208,784
	166,657			32,351			40,879				13,205				32,728
	15,042			11,884			12,658				9,348				10,992
	86,074			60,892			77,510				51,775				104,955
	12,136			7,555			13,136				974				7,164
	31,942			45,929			28,600				26,075				32,748
	55,101			51,933			54,642				50,908				57,386
	10,013			2,929			7,678				509				15,270
	13,793			6,124			11,137				4,009				20,329
	1,812,959			708,286			1,411,383				315,199				2,551,133
	—			(8,032	)		—				(197,383	)			—
	—			—			—				—				—
	1,812,959			700,254			1,411,383				117,816				2,551,133
	1,448,793			(103,747	)		3,150,453				201,770				6,601,062
	(17,280,343	)		(1,444,661	)		(25,549,424	)			(2,573,534	)			(50,759,601	)
	—			—			13,422				(6,025	)			(126,263	)
	76,524,594			26,073,943			54,137,152				3,954,901				115,518,191
	—			—			7,937				385				33,102
	59,244,251			24,629,282			28,609,087				1,375,727				64,665,429
$	60,693,044		$	24,525,535		$	31,759,540			$	1,577,497			$	71,266,491
$	—		$	—		$	422,486			$	29,403			$	788,596
$	—		$	—		$	—			$	—			$	105,480
$	—		$	—		$	—			$	—			$	18,189

Annual Report  63

For the Period Ended December 31, 2009	Lazard International Small Cap Equity Portfolio				Lazard Global Listed Infrastructure Portfolio (a)
Investment Income
Income
Dividends		$	1,960,063			$	—
Interest			519				—
Total investment income*			1,960,582				—
Expenses
Management fees			541,008				—
Custodian fees			133,531				—
Distribution fees (Open Shares)			72,939				—
Shareholders’ services			32,667				—
Administration fees			64,428				—
Shareholders’ reports			14,071				—
Registration fees			28,402				—
Professional services			52,653				5,000
Directors’ fees and expenses			4,471				—
Amortization of offering expenses			—				—
Other			10,436				—
Total gross expenses			954,606				5,000
Management fees waived and expenses reimbursed			(34,170	)			(4,996	)
Administration fees waived			—				—
Expense reductions (Note 2 (j))			—				—
Total net expenses			920,436				4
Net investment income (loss)			1,040,146				(4	)
Net Realized and Unrealized Gain (Loss) on Investments, Options, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments**			(45,968,761	)			—
Options			—				—
Foreign currency and forward currency contracts			(49,584	)			—
Net change in unrealized appreciation (depreciation) on:
Investments†			61,371,951				—
Foreign currency and forward currency contracts			(8,370	)			—
Net realized and unrealized gain on investments, options, foreign currency and forward currency contracts			15,345,236				—
Net increase (decrease) in net assets resulting from operations		$	16,385,382			$	(4	)
*   Net of foreign withholding taxes of		$	218,105			$	—
** Net of foreign capital gains taxes of		$	—			$	—
†  Includes net change in unrealized foreign capital gains taxes of		$	—			$	—

(a) Portfolio commenced operations on December 31, 2009.

The accompanying notes are an integral part of these financial statements.

64  Annual Report

Lazard Emerging Markets Equity Portfolio			Lazard Developing Markets Equity Portfolio			Lazard U.S. High Yield Portfolio			Lazard Capital Allocator Opportunistic Strategies Portfolio
$	269,278,607		$	283,299		$	10,292			$	4,523,957
	143,472			418			6,051,198				2,468
	269,422,079			283,717			6,061,490				4,526,425
	76,191,090			244,566			391,385				1,649,073
	7,108,821			169,558			68,366				49,490
	5,210,982			32,323			18,461				34,359
	3,407,651			23,810			10,802				10,362
	911,912			54,911			64,234				82,983
	1,550,769			4,592			3,777				5,458
	561,108			30,392			34,363				39,322
	229,133			51,088			52,349				54,337
	383,726			1,045			3,774				8,623
	—			36,317			—				11,190
	375,278			3,636			9,680				11,984
	95,930,470			652,238			657,191				1,957,181
	—			(284,576	)		(243,692	)			(234,202	)
	—			(10,938	)		—				—
	—			—			(9	)			—
	95,930,470			356,724			413,490				1,722,979
	173,491,609			(73,007	)		5,648,000				2,803,446
	(1,114,737,061	)		4,547,017			(4,302,446	)			(19,775,023	)
	—			—			—				111,179
	(20,249,416	)		151,349			—				(199,957	)
	4,905,199,748			9,755,285			19,030,597				50,244,104
	(148,155	)		2,068			—				511,079
	3,770,065,116			14,455,719			14,728,151				30,891,382
$	3,943,556,725		$	14,382,712		$	20,376,151			$	33,694,828
$	22,408,363		$	31,730		$	—			$	2,286
$	1,257,676		$	10,152		$	—			$	—
$	10,050,026		$	—		$	—			$	—

Annual Report  65

   The Lazard Funds, Inc. Statements of Changes in Net Assets

	Lazard U.S. Equity Value Portfolio
	Year Ended December 31, 2009			Year Ended December 31, 2008
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	115,530		$	162,760
Net realized loss on investments		(1,128,878	)		(2,053,678	)
Net change in unrealized appreciation (depreciation) on investments		2,777,855			(1,788,388	)
Net increase (decrease) in net assets resulting from operations		1,764,507			(3,679,306	)
Distributions to shareholders
From net investment income
Institutional Shares		(113,788	)		(156,785	)
Open Shares		(3,262	)		(2,676	)
From net realized gains
Institutional Shares		—			—
Open Shares		—			—
Net decrease in net assets resulting from distributions		(117,050	)		(159,461	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		304,242			1,649,026
Open Shares		133,161			73,000
Net proceeds from reinvestment of distributions
Institutional Shares		112,953			156,002
Open Shares		2,813			2,610
Cost of shares redeemed
Institutional Shares		(88,111	)		(6,344	)
Open Shares		(36,876	)		(175,786	)
Net increase (decrease) in net assets from capital stock transactions		428,182			1,698,508
Redemption fees (Note 2(k))
Institutional Shares		—			—
Open Shares		26			—
Net increase in net assets from redemption fees		26			—
Total increase (decrease) in net assets		2,075,665			(2,140,259	)
Net assets at beginning of year		6,688,431			8,828,690
Net assets at end of year*	$	8,764,096		$	6,688,431
*Includes undistributed (distributions in excess of) net investment income of	$	(18,745	)	$	(19,879	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		936,319			754,370
Shares sold		44,457			159,324
Shares issued to shareholders from reinvestment of distributions		13,003			23,284
Shares redeemed		(11,462	)		(659	)
Net increase (decrease)		45,998			181,949
Shares outstanding at end of year		982,317			936,319
Open Shares
Shares outstanding at beginning of year		19,092			30,169
Shares sold		19,468			7,987
Shares issued to shareholders from reinvestment of distributions		321			387
Shares redeemed		(4,232	)		(19,451	)
Net increase (decrease)		15,557			(11,077	)
Shares outstanding at end of year		34,649			19,092

The accompanying notes are an integral part of these financial statements.

66  Annual Report

Lazard U.S. Strategic Equity Portfolio						Lazard U.S. Mid Cap Equity Portfolio						Lazard U.S. Small-Mid Cap Equity Portfolio
Year Ended December 31, 2009			Year Ended December 31, 2008			Year Ended December 31, 2009			Year Ended December 31, 2008			Year Ended December 31, 2009			Year Ended December 31, 2008
$	802,047		$	1,156,353		$	1,448,793		$	3,764,015		$	(103,747	)	$	8,716
	(7,129,841	)		(21,234,218	)		(17,280,343	)		(104,764,294	)		(1,444,661	)		(18,331,358	)
	23,468,149			(12,941,377	)		76,524,594			(18,538,483	)		26,073,943			(11,046,590	)
	17,140,355			(33,019,242	)		60,693,044			(119,538,762	)		24,525,535			(29,369,232	)
	—			(1,043,206	)		(1,061,800	)		(2,377,086	)		—			—
	—			(108,041	)		(362,964	)		(1,273,350	)		—			—
	—			(1,010,118	)		—			—			—			—
	—			(133,846	)		—			—			—			—
	—			(2,295,211	)		(1,424,764	)		(3,650,436	)		—			—
	3,621,141			13,108,914			36,596,957			60,621,570			18,625,206			2,863,354
	3,948,509			7,168,549			13,677,026			35,720,012			7,627,394			4,293,471
	—			2,021,822			751,427			1,758,340			—			—
	—			218,883			339,321			1,164,910			—			—
	(7,392,941	)		(17,330,283	)		(35,236,721	)		(160,193,161	)		(18,159,522	)		(53,564,893	)
	(4,187,168	)		(7,705,350	)		(30,418,809	)		(83,887,149	)		(4,480,404	)		(11,843,891	)
	(4,010,459	)		(2,517,465	)		(14,290,799	)		(144,815,478	)		3,612,674			(58,251,959	)
	—			—			3,650			7,936			—			13
	—			—			1,067			4,090			28			6
	—			—			4,717			12,026			28			19
	13,129,896			(37,831,918	)		44,982,198			(267,992,650	)		28,138,237			(87,621,172	)
	61,967,407			99,799,325			168,022,080			436,014,730			47,434,652			135,055,824
$	75,097,303		$	61,967,407		$	213,004,278		$	168,022,080		$	75,572,889		$	47,434,652
$	802,020		$	—		$	51,803		$	44,057		$	1		$	7,372
	8,746,920			8,801,899			13,826,282			22,311,342			4,863,965			9,484,085
	591,194			1,597,649			4,407,296			5,567,866			1,885,281			281,942
	—			282,438			72,480			245,578			—			—
	(1,091,070	)		(1,935,066	)		(4,414,361	)		(14,298,504	)		(1,998,709	)		(4,902,062	)
	(499,876	)		(54,979	)		65,415			(8,485,060	)		(113,428	)		(4,620,120	)
	8,247,044			8,746,920			13,891,697			13,826,282			4,750,537			4,863,965
	1,148,843			1,150,059			8,699,296			12,865,182			1,406,771			2,205,839
	617,602			928,155			1,654,398			3,281,183			818,001			458,706
	—			29,822			32,976			164,768			—			—
	(651,759	)		(959,193	)		(3,534,603	)		(7,611,837	)		(535,554	)		(1,257,774	)
	(34,157	)		(1,216	)		(1,847,229	)		(4,165,886	)		282,447			(799,068	)
	1,114,686			1,148,843			6,852,067			8,699,296			1,689,218			1,406,771

Annual Report  67

	Lazard International Equity Portfolio
	Year Ended December 31, 2009			Year Ended December 31, 2008
Increase (Decrease) in Net Assets
Operations
Net investment income	$	3,150,453		$	5,465,389
Net realized loss on investments and foreign currency		(25,536,002	)		(5,986,525	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency		54,145,089			(100,336,019	)
Net increase (decrease) in net assets resulting from operations		31,759,540			(100,857,155	)
Distributions to shareholders
From net investment income
Institutional Shares		(50,545	)		(4,547,423	)
Open Shares		—			(462,171	)
From net realized gains
Institutional Shares		—			—
Open Shares		—			—
Net decrease in net assets resulting from distributions		(50,545	)		(5,009,594	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		6,660,199			9,641,929
Open Shares		6,211,004			11,224,487
Net proceeds from reinvestment of distributions
Institutional Shares		35,632			3,151,598
Open Shares		—			367,029
Cost of shares redeemed
Institutional Shares		(15,396,026	)		(132,981,670	)
Open Shares		(5,330,811	)		(18,609,419	)
Net increase (decrease) in net assets from capital stock transactions		(7,820,002	)		(127,206,046	)
Redemption fees (Note 2(k))
Institutional Shares		947			222
Open Shares		—			889
Net increase (decrease) in net assets from redemption fees		947			1,111
Total increase (decrease) in net assets		23,889,940			(233,071,684	)
Net assets at beginning of year		134,699,705			367,771,389
Net assets at end of year*	$	158,589,645		$	134,699,705
*Includes undistributed (distributions in excess of) net investment income of	$	3,226,533		$	50,537
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		11,420,948			19,104,018
Shares sold		607,053			668,329
Shares issued to shareholders from reinvestment of distributions		2,881			313,592
Shares redeemed		(1,446,218	)		(8,664,991	)
Net increase (decrease)		(836,284	)		(7,683,070	)
Shares outstanding at end of year		10,584,664			11,420,948
Open Shares
Shares outstanding at beginning of year		1,398,912			1,833,826
Shares sold		560,515			831,268
Shares issued to shareholders from reinvestment of distributions		—			36,125
Shares redeemed		(484,683	)		(1,302,307	)
Net increase (decrease)		75,832			(434,914	)
Shares outstanding at end of year		1,474,744			1,398,912

The accompanying notes are an integral part of these financial statements.

68Annual Report

Lazard International Equity Select Portfolio						Lazard International Strategic Equity Portfolio						Lazard International Small Cap Equity Portfolio
Year Ended December 31, 2009			Year Ended December 31, 2008			Year Ended December 31, 2009			Year Ended December 31, 2008			Year Ended December 31, 2009			Year Ended December 31, 2008
$	201,770		$	517,405		$	6,601,062		$	8,815,228		$	1,040,146		$	2,931,015
	(2,579,559	)		(2,226,033	)		(50,885,864	)		(48,317,012	)		(46,018,345	)		(36,358,484	)
	3,955,286			(6,554,789	)		115,551,293			(139,343,505	)		61,363,581			(67,579,928	)
	1,577,497			(8,263,417	)		71,266,491			(178,845,289	)		16,385,382			(101,007,397	)
	(11,249	)		(212,402	)		(6,008,173	)		(6,901,952	)		—			(2,145,981	)
	(2,723	)		(276,939	)		(269,925	)		(323,026	)		—			(692,569	)
	—			(452,412	)		—			(689,362	)		—			(7,176,140	)
	—			(666,239	)		—			(47,104	)		—			(3,460,861	)
	(13,972	)		(1,607,992	)		(6,278,098	)		(7,961,444	)		—			(13,475,551	)
	1,387,848			2,070,592			40,370,073			30,663,206			23,843,888			94,441,545
	918,356			1,442,558			12,171,444			21,783,670			8,784,586			18,835,536
	7,209			532,093			4,544,925			5,833,105			—			7,596,001
	2,505			882,977			264,695			368,283			—			3,796,314
	(1,993,398	)		(6,663,138	)		(41,400,791	)		(33,962,264	)		(65,099,266	)		(81,763,975	)
	(3,143,891	)		(4,699,604	)		(9,150,357	)		(13,578,037	)		(20,446,760	)		(43,241,108	)
	(2,821,371	)		(6,434,522	)		6,799,989			11,107,963			(52,917,552	)		(335,687	)
	313			550			191			1,614			413			6,655
	263			16			(2,084	)		2,171			2,454			699
	576			566			(1,893	)		3,785			2,867			7,354
	(1,257,270	)		(16,305,365	)		71,786,489			(175,694,985	)		(36,529,303	)		(114,811,281	)
	9,712,828			26,018,193			259,230,366			434,925,351			104,692,489			219,503,770
$	8,455,558		$	9,712,828		$	331,016,855		$	259,230,366		$	68,163,186		$	104,692,489
$	207,352		$	13,860		$	1,227,452		$	1,094,136		$	983,995		$	(6,567	)
	604,238			1,026,949			32,709,101			32,409,457			15,560,787			12,363,024
	212,263			260,695			4,550,037			3,035,124			4,055,748			11,228,256
	985			67,190			484,282			785,249			—			1,097,973
	(308,014	)		(750,596	)		(4,639,453	)		(3,520,729	)		(13,595,144	)		(9,128,466	)
	(94,766	)		(422,711	)		394,866			299,644			(9,539,396	)		3,197,763
	509,472			604,238			33,103,967			32,709,101			6,021,391			15,560,787
	912,853			1,178,185			1,814,586			1,266,859			6,237,024			8,540,137
	135,263			163,271			1,449,537			1,950,299			1,514,858			2,378,476
	341			112,094			28,037			49,411			—			535,275
	(461,878	)		(540,697	)		(1,230,342	)		(1,451,983	)		(3,582,965	)		(5,216,864	)
	(326,274	)		(265,332	)		247,232			547,727			(2,068,107	)		(2,303,113	)
	586,579			912,853			2,061,818			1,814,586			4,168,917			6,237,024

Annual Report  69

	Lazard Global Listed Infrastructure Portfolio
	Period Ended December 31, 2009**
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	(4	)
Net realized gain (loss) on investments and foreign currency		—
Net change in unrealized appreciation (depreciation) on investments and foreign currency		—
Net increase (decrease) in net assets resulting from operations		(4	)
Distributions to shareholders
From net investment income
Institutional Shares		—
Open Shares		—
From net realized gains
Institutional Shares		—
Open Shares		—
Net decrease in net assets resulting from distributions		—
Capital stock transactions
Net proceeds from sales
Institutional Shares		73,899
Open Shares		50,000
Net proceeds from reinvestment of distributions
Institutional Shares		—
Open Shares		—
Cost of shares redeemed
Institutional Shares		—
Open Shares		—
Net increase (decrease) in net assets from capital stock transactions		123,899
Redemption fees (Note 2(k))
Institutional Shares		—
Open Shares		—
Net increase in net assets from redemption fees		—
Total increase (decrease) in net assets		123,895
Net assets at beginning of period		—
Net assets at end of period*	$	123,895
*     Includes undistributed (distributions in excess of) net investment income (loss) of	$	—
**   Portfolio commenced operations on December 31, 2009.
†   Portfolio commenced operations on September 30, 2008.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		—
Shares sold		7,390
Shares issued to shareholders from reinvestment of distributions		—
Shares redeemed		—
Net increase (decrease)		7,390
Shares outstanding at end of period		7,390
Open Shares
Shares outstanding at beginning of period		—
Shares sold		5,000
Shares issued to shareholders from reinvestment of distributions		—
Shares redeemed		—
Net increase (decrease)		5,000
Shares outstanding at end of period		5,000

The accompanying notes are an integral part of these financial statements.

70  Annual Report

Lazard Emerging Markets Equity Portfolio						Lazard Developing Markets Equity Portfolio						Lazard U.S. High Yield Portfolio
Year Ended December 31, 2009			Year Ended December 31, 2008			Year Ended December 31, 2009			Period Ended December 31, 2008†			Year Ended December 31, 2009			Year Ended December 31, 2008
$	173,491,609		$	196,359,418		$	(73,007	)	$	4,541		$	5,648,000		$	4,096,656
	(1,134,986,477	)		(248,909,557	)		4,740,733			(593,613	)		(4,302,446	)		(2,513,802	)
	4,905,051,593			(3,868,440,606	)		9,714,986			(1,837,500	)		19,030,597			(11,115,548	)
	3,943,556,725			(3,920,990,745	)		14,382,712			(2,426,572	)		20,376,151			(9,532,694	)
	(213,098,743	)		(134,962,200	)		(53,044	)		(5,744	)		(5,077,021	)		(3,765,781	)
	(75,965,459	)		(40,106,596	)		(9,449	)		—			(570,610	)		(334,254	)
	—			(352,398,452	)		(617,737	)		—			—			—
	—			(122,897,038	)		(1,313,171	)		—			—			—
	(289,064,202	)		(650,364,286	)		(1,993,401	)		(5,744	)		(5,647,631	)		(4,100,035	)
	3,728,730,269			2,881,382,659			6,734,603			8,950,072			59,926,907			8,774,235
	1,942,142,287			1,487,740,951			38,429,793			374,340			6,119,172			7,506,814
	179,344,209			439,559,870			637,253			4,660			3,298,041			3,271,381
	68,872,759			151,615,778			1,304,978			—			347,431			111,646
	(1,400,549,243	)		(1,916,399,576	)		(1,262,218	)		—			(22,988,509	)		(21,832,121	)
	(628,483,832	)		(779,961,986	)		(2,158,324	)		—			(7,231,937	)		(2,772,205	)
	3,890,056,449			2,263,937,696			43,686,085			9,329,072			39,471,105			(4,940,250	)
	180,078			266,410			51			—			6,353			185
	240,241			221,143			5,416			—			5,462			1,387
	420,319			487,553			5,467			—			11,815			1,572
	7,544,969,291			(2,306,929,782	)		56,080,863			6,896,756			54,211,440			(18,571,407	)
	4,431,025,323			6,737,955,105			6,896,756			—			39,482,650			58,054,057
$	11,975,994,614		$	4,431,025,323		$	62,977,619		$	6,896,756		$	93,694,090		$	39,482,650
$	(121,241,529	)	$	(6,339,328	)	$	12,031		$	(39,857	)	$	(230,128	)	$	(284,000	)
	303,003,714			220,678,561			999,421			—			9,073,796			10,936,413
	255,663,716			156,640,752			604,160			998,695			14,172,786			1,947,466
	9,991,334			33,803,788			48,720			726			765,009			704,062
	(96,845,957	)		(108,119,387	)		(134,483	)		—			(5,391,934	)		(4,514,145	)
	168,809,093			82,325,153			518,397			999,421			9,545,861			(1,862,617	)
	471,812,807			303,003,714			1,517,818			999,421			18,619,657			9,073,796
	102,746,768			60,722,332			54,614			—			1,376,829			343,679
	127,649,425			74,668,872			3,300,183			54,614			1,471,742			1,601,082
	3,780,047			11,335,377			99,693			—			79,651			24,210
	(43,921,704	)		(43,979,813	)		(196,154	)		—			(1,632,879	)		(592,142	)
	87,507,768			42,024,436			3,203,722			54,614			(81,486	)		1,033,150
	190,254,536			102,746,768			3,258,336			54,614			1,295,343			1,376,829

Annual Report  71

	Lazard Capital Allocator Opportunistic Strategies Portfolio
	Year Ended December 31, 2009			Period Ended December 31, 2008**
Increase in Net Assets
Operations
Net investment income	$	2,803,446		$	3,551,644
Net realized loss on investments, options, foreign currency and forward currency contracts		(19,863,801	)		(18,097,683	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency
and forward currency contracts		50,755,183			(34,492,862	)
Net increase (decrease) in net assets resulting from operations		33,694,828			(49,038,901	)
Distributions to shareholders
From net investment income
Institutional Shares		(2,690,734	)		(4,062,392	)
Open Shares		(184,678	)		(213,626	)
Net decrease in net assets resulting from distributions		(2,875,412	)		(4,276,018	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		98,851,646			202,127,067
Open Shares		12,563,627			14,174,302
Net proceeds from reinvestment of distributions
Institutional Shares		1,515,440			1,508,581
Open Shares		65,857			134,004
Cost of shares redeemed
Institutional Shares		(43,713,802	)		(41,810,708	)
Open Shares		(7,387,095	)		(2,745,272	)
Net increase in net assets from capital stock transactions		61,895,673			173,387,974
Redemption fees (Note 2(k))
Institutional Shares		2,166			1,335
Open Shares		1,854			1,557
Net increase in net assets from redemption fees		4,020			2,892
Total increase in net assets		92,719,109			120,075,947
Net assets at beginning of period		120,075,947			—
Net assets at end of period*	$	212,795,056		$	120,075,947
*   Includes undistributed net investment income of	$	20,548		$	322,499
** Portfolio commenced operations on March 26, 2008.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		15,043,527			—
Shares sold		12,450,610			20,288,588
Shares issued to shareholders from reinvestment of distributions		171,624			214,592
Shares redeemed		(5,387,345	)		(5,459,653	)
Net increase		7,234,889			15,043,527
Shares outstanding at end of period		22,278,416			15,043,527
Open Shares
Shares outstanding at beginning of period		1,264,077			—
Shares sold		1,555,062			1,561,830
Shares issued to shareholders from reinvestment of distributions		7,450			19,035
Shares redeemed		(912,236	)		(316,788	)
Net increase		650,276			1,264,077
Shares outstanding at end of period		1,914,353			1,264,077

The accompanying notes are an integral part of these financial statements.

72Annual Report

The Lazard Funds, Inc. Financial Highlights

LAZARD U.S. EQUITY VALUE PORTFOLIO

	Year Ended																For the Period
Selected data for a share of capital stock outstanding throughout each period																	9/30/05* to
	12/31/09				12/31/08				12/31/07				12/31/06				12/31/05
Institutional Shares
Net asset value, beginning of period		$	7.00			$	11.25			$	11.73			$	10.02			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.12				0.18				0.17				0.18				0.03
Net realized and unrealized gain (loss)			1.62				(4.26	)			0.05				2.33				0.02
Total from investment operations			1.74				(4.08	)			0.22				2.51				0.05
Less distributions from:
Net investment income			(0.12	)			(0.17	)			(0.15	)			(0.62	)			(0.03	)
Net realized gains			—				—				(0.55	)			(0.18	)			—
Total distributions			(0.12	)			(0.17	)			(0.70	)			(0.80	)			(0.03	)
Redemption fees			—				—				—	(c)			—				—
Net asset value, end of period		$	8.62			$	7.00			$	11.25			$	11.73			$	10.02
Total Return (b)			24.81	%			(36.18	)%			1.65	%			25.23	%			0.48	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	8,464			$	6,554			$	8,488			$	390			$	90
Ratios to average net assets:
Net expenses (d)			1.00	%			1.00	%			1.00	%			1.00	%			1.00	%
Gross expenses (d)			3.44	%			3.21	%			3.56	%			112.90	%			388.31	%
Net investment income (d)			1.60	%			1.90	%			1.40	%			1.57	%			1.17	%
Portfolio turnover rate			62	%			97	%			83	%			95	%			13	%

	Year Ended																For the Period
Selected data for a share of capital stock outstanding throughout each period																	9/30/05* to
	12/31/09				12/31/08				12/31/07				12/31/06				12/31/05
Open Shares
Net asset value, beginning of period		$	7.04			$	11.31			$	11.77			$	10.02			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.09				0.15				0.13				0.12				0.02
Net realized and unrealized gain (loss)			1.64				(4.28	)			0.06				2.37				0.02
Total from investment operations			1.73				(4.13	)			0.19				2.49				0.04
Less distributions from:
Net investment income			(0.10	)			(0.14	)			(0.11	)			(0.56	)			(0.02	)
Net realized gains			—				—				(0.55	)			(0.18	)			—
Total distributions			(0.10	)			(0.14	)			(0.66	)			(0.74	)			(0.02	)
Redemption fees			—	(c)			—				0.01				—				—
Net asset value, end of period		$	8.67			$	7.04			$	11.31			$	11.77			$	10.02
Total Return (b)			24.49	%			(36.43	)%			1.59	%			24.83	%			0.41	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	300			$	134			$	341			$	240			$	10
Ratios to average net assets:
Net expenses (d)			1.30	%			1.30	%			1.30	%			1.30	%			1.30	%
Gross expenses (d)			5.52	%			12.10	%			9.40	%			138.32	%			596.46	%
Net investment income (d)			1.15	%			1.56	%			1.02	%			1.05	%			0.86	%
Portfolio turnover rate			62	%			97	%			83	%			95	%			13	%

*	Commencement of operations.
(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Amount is less than $0.01 per share.
(d)	Annualized for a period of less than one year.

The accompanying notes are an integral part of these financial statements.

Annual Report  73

LAZARD U.S. STRATEGIC EQUITY PORTFOLIO

	Year Ended
Selected data for a share of capital stock outstanding throughout each year
		12/31/09			12/31/08			12/31/07				12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of year		$	6.26		$	10.03			$	11.81		$	10.38		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.08			0.12				0.11			0.08			0.09
Net realized and unrealized gain (loss)			1.68			(3.65	)			(0.04	)		1.73			0.41
Total from investment operations			1.76			(3.53	)			0.07			1.81			0.50
Less distributions from:
Net investment income			—			(0.12	)			(0.12	)		(0.07	)		(0.03	)
Net realized gains			—			(0.12	)			(1.73	)		(0.31	)		(0.09	)
Total distributions			—			(0.24	)			(1.85	)		(0.38	)		(0.12	)
Redemption fees			—			—				—			—	(c)		—
Net asset value, end of year		$	8.02		$	6.26			$	10.03		$	11.81		$	10.38
Total Return (b)			28.12	%		(35.43	)%			0.33	%		17.44	%		4.99	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)		$	66,153		$	54,749			$	88,242		$	117,194		$	15,085
Ratios to average net assets:
Net expenses			1.05	%		1.05	%			0.98	%		1.05	%		1.16	%
Gross expenses			1.09	%		1.06	%			0.98	%		1.35	%		13.80	%
Net investment income			1.26	%		1.45	%			0.86	%		0.71	%		0.90	%
Portfolio turnover rate			76	%		82	%			58	%		82	%		53	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
		12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of year		$	6.28		$	10.05		$	11.83		$	10.39		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.07			0.10			0.06			—	(c)		0.06
Net realized and unrealized gain (loss)			1.67			(3.65	)		(0.03	)		1.79			0.35
Total from investment operations			1.74			(3.55	)		0.03			1.79			0.41
Less distributions from:
Net investment income			—			(0.10	)		(0.08	)		(0.04	)		—
Net realized gains			—			(0.12	)		(1.73	)		(0.31	)		(0.09	)
Total distributions			—			(0.22	)		(1.81	)		(0.35	)		(0.09	)
Redemption fees			—			—			—	(c)		—			0.07
Net asset value, end of year		$	8.02		$	6.28		$	10.05		$	11.83		$	10.39
Total Return (b)			27.71	%		(35.63	)%		(0.07	)%		17.20	%		4.79	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)		$	8,945		$	7,218		$	11,558		$	11,836		$	234
Ratios to average net assets:
Net expenses			1.35	%		1.35	%		1.35	%		1.35	%		1.50	%
Gross expenses			1.39	%		1.51	%		1.40	%		7.38	%		33.06	%
Net investment income			0.96	%		1.15	%		0.50	%		0.03	%		0.58	%
Portfolio turnover rate			76	%		82	%		58	%		82	%		53	%

(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
(c)	Amount is less than $0.01 per share.

The accompanying notes are an integral part of these financial statements.

74 Annual Report

LAZARD U.S. MID CAP EQUITY PORTFOLIO

	Year Ended
Selected data for a share of capital stock outstanding throughout each year
		12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of year		$	7.50		$	12.46		$	14.41		$	13.23		$	13.20
Income (loss) from investment operations:
Net investment income (a)			0.08			0.15			0.12			0.09			0.09
Net realized and unrealized gain (loss)			2.81			(4.93	)		(0.51	)		1.88			1.07
Total from investment operations			2.89			(4.78	)		(0.39	)		1.97			1.16
Less distributions from:
Net investment income			(0.08	)		(0.18	)		(0.11	)		(0.08	)		(0.07	)
Net realized gains			—			—			(1.45	)		(0.71	)		(1.06	)
Total distributions			(0.08	)		(0.18	)		(1.56	)		(0.79	)		(1.13	)
Redemption fees			—	(c)		—	(c)		—	(c)		—	(c)		—
Net asset value, end of year		$	10.31		$	7.50		$	12.46		$	14.41		$	13.23
Total Return (b)			38.49	%		(38.33	)%		(2.93	)%		14.85	%		8.89	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)		$	143,267		$	103,650		$	277,953		$	235,367		$	171,912
Ratios to average net assets:
Net expenses			0.91	%		0.89	%		0.87	%		0.89	%		0.93	%
Gross expenses			0.91	%		0.89	%		0.87	%		0.89	%		0.93	%
Net investment income			0.90	%		1.41	%		0.81	%		0.66	%		0.67	%
Portfolio turnover rate			77	%		81	%		100	%		76	%		80	%

	Year Ended
Selected data for a share of capital stock outstanding throughout each year
		12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of year		$	7.40		$	12.29		$	14.23		$	13.07		$	13.06
Income (loss) from investment operations:
Net investment income (a)			0.05			0.13			0.09			0.05			0.05
Net realized and unrealized gain (loss)			2.78			(4.87	)		(0.51	)		1.86			1.05
Total from investment operations			2.83			(4.74	)		(0.42	)		1.91			1.10
Less distributions from:
Net investment income			(0.05	)		(0.15	)		(0.07	)		(0.04	)		(0.03	)
Net realized gains			—			—			(1.45	)		(0.71	)		(1.06	)
Total distributions			(0.05	)		(0.15	)		(1.52	)		(0.75	)		(1.09	)
Redemption fees			—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year		$	10.18		$	7.40		$	12.29		$	14.23		$	13.07
Total Return (b)			38.26	%		(38.53	)%		(3.17	)%		14.57	%		8.53	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)		$	69,737		$	64,372		$	158,062		$	80,410		$	54,370
Ratios to average net assets:
Net expenses			1.17	%		1.15	%		1.13	%		1.18	%		1.23	%
Gross expenses			1.17	%		1.15	%		1.13	%		1.18	%		1.23	%
Net investment income			0.64	%		1.17	%		0.58	%		0.37	%		0.35	%
Portfolio turnover rate			77	%		81	%		100	%		76	%		80	%

(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any.
(c)	Amount is less than $0.01 per share.

The accompanying notes are an integral part of these financial statements.

Annual Report 75

LAZARD U.S. SMALL-MID CAP EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of year	$	7.59		$	11.58		$	14.44		$	15.40		$	18.84
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.01	)		0.01			0.04			0.02			0.02
Net realized and unrealized gain (loss)		4.22			(4.00	)		(0.87	)		2.60			0.76
Total from investment operations		4.21			(3.99	)		(0.83	)		2.62			0.78
Less distributions from:
Net investment income		—			—			(0.04	)		(0.01	)		(0.02	)
Net realized gains		—			—			(1.99	)		(3.57	)		(4.20	)
Total distributions		—			—			(2.03	)		(3.58	)		(4.22	)
Redemption fees		—			—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	11.80		$	7.59		$	11.58		$	14.44		$	15.40
Total Return (b)		55.47	%		(34.46	)%		(6.38	)%		17.11	%		4.31	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	56,042		$	36,934		$	109,853		$	196,483		$	253,236
Ratios to average net assets:
Net expenses		1.22	%		1.13	%		0.93	%		0.91	%		0.88	%
Gross expenses		1.23	%		1.13	%		0.93	%		0.91	%		0.88	%
Net investment income (loss)		(0.12	)%		0.08	%		0.24	%		0.10	%		0.10	%
Portfolio turnover rate		195	%		138	%		98	%		86	%		87	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of year	$	7.46		$	11.43		$	14.27		$	15.29		$	18.78
Income (loss) from investment operations:
Net investment loss (a)		(0.04	)		(0.03	)		(0.01	)		(0.03	)		(0.04	)
Net realized and unrealized gain (loss)		4.14			(3.94	)		(0.84	)		2.58			0.75
Total from investment operations		4.10			(3.97	)		(0.85	)		2.55			0.71
Less distributions from:
Net investment income		—			—			—			—			—
Net realized gains		—			—			(1.99	)		(3.57	)		(4.20	)
Total distributions		—			—			(1.99	)		(3.57	)		(4.20	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	11.56		$	7.46		$	11.43		$	14.27		$	15.29
Total Return (b)		54.96	%		(34.73	)%		(6.60	)%		16.77	%		3.93	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	19,531		$	10,500		$	25,203		$	35,627		$	37,057
Ratios to average net assets:
Net expenses		1.51	%		1.49	%		1.25	%		1.23	%		1.19	%
Gross expenses		1.52	%		1.49	%		1.25	%		1.23	%		1.19	%
Net investment loss		(0.40	)%		(0.26	)%		(0.07	)%		(0.21	)%		(0.21	)%
Portfolio turnover rate		195	%		138	%		98	%		86	%		87	%

(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
(c)	Amount is less than $0.01 per share.

The accompanying notes are an integral part of these financial statements.

76  Annual Report

LAZARD INTERNATIONAL EQUITY PORTFOLIO

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of year	$	10.50		$	17.55		$	16.31		$	14.00		$	12.91
Income (loss) from investment operations:
Net investment income (a)		0.26			0.36			0.36			0.33			0.26
Net realized and unrealized gain (loss)		2.38			(7.00	)		1.42			2.83			1.16
Total from investment operations		2.64			(6.64	)		1.78			3.16			1.42
Less distributions from:
Net investment income		—	(c)		(0.41	)		(0.54	)		(0.85	)		(0.33	)
Total distributions		—	(c)		(0.41	)		(0.54	)		(0.85	)		(0.33	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	13.14		$	10.50		$	17.55		$	16.31		$	14.00
Total Return (b)		25.19	%		(37.75	)%		10.96	%		22.92	%		11.25	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	139,070		$	119,870		$	335,323		$	701,145		$	1,035,346
Ratios to average net assets:
Net expenses		0.99	%		0.93	%		0.89	%		0.84	%		0.89	%
Gross expenses		0.99	%		0.93	%		0.89	%		0.84	%		0.89	%
Net investment income		2.33	%		2.47	%		2.08	%		2.14	%		2.03	%
Portfolio turnover rate		66	%		44	%		50	%		68	%		60	%

Selected data for a share of capital	Year Ended
stock outstanding throughout each year	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of year	$	10.60		$	17.69		$	16.40		$	14.03		$	12.94
Income (loss) from investment operations:
Net investment income (a)		0.22			0.31			0.32			0.25			0.23
Net realized and unrealized gain (loss)		2.42			(7.04	)		1.41			2.87			1.16
Total from investment operations		2.64			(6.73	)		1.73			3.12			1.39
Less distributions from:
Net investment income		—			(0.36	)		(0.44	)		(0.75	)		(0.30	)
Total distributions		—			(0.36	)		(0.44	)		(0.75	)		(0.30	)
Redemption fees		—			—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	13.24		$	10.60		$	17.69		$	16.40		$	14.03
Total Return (b)		24.91	%		(37.98	)%		10.57	%		22.59	%		10.93	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	19,520		$	14,829		$	32,449		$	49,657		$	48,770
Ratios to average net assets:
Net expenses		1.27	%		1.28	%		1.19	%		1.15	%		1.18	%
Gross expenses		1.27	%		1.28	%		1.19	%		1.15	%		1.18	%
Net investment income		1.98	%		2.16	%		1.89	%		1.63	%		1.78	%
Portfolio turnover rate		66	%		44	%		50	%		68	%		60	%

(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any.
(c)	Amount is less than $0.01 per share.

The accompanying notes are an integral part of these financial statements.

Annual Report  77

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of year	$	6.39		$	11.78		$	13.07		$	11.73		$	11.25
Income (loss) from investment operations:
Net investment income (a)		0.17			0.30			0.22			0.25			0.18
Net realized and unrealized gain (loss)		1.16			(4.73	)		0.97			2.43			0.82
Total from investment operations		1.33			(4.43	)		1.19			2.68			1.00
Less distributions from:
Net investment income		(0.02	)		(0.33	)		(0.25	)		(0.23	)		(0.16	)
Net realized gains		—			(0.63	)		(2.23	)		(1.11	)		(0.36	)
Total distributions		(0.02	)		(0.96	)		(2.48	)		(1.34	)		(0.52	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—
Net asset value, end of year	$	7.70		$	6.39		$	11.78		$	13.07		$	11.73
Total Return (b)		20.86	%		(38.74	)%		9.25	%		23.01	%		8.90	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	3,925		$	3,860		$	12,103		$	16,677		$	12,262
Ratios to average net assets:
Net expenses		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses		3.46	%		2.24	%		1.67	%		1.85	%		1.97	%
Net investment income		2.52	%		3.06	%		1.58	%		1.90	%		1.55	%
Portfolio turnover rate		67	%		52	%		50	%		40	%		33	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of year	$	6.41		$	11.81		$	13.10		$	11.75		$	11.28
Income (loss) from investment operations:
Net investment income (a)		0.14			0.26			0.16			0.21			0.12
Net realized and unrealized gain (loss)		1.17			(4.73	)		0.99			2.44			0.83
Total from investment operations		1.31			(4.47	)		1.15			2.65			0.95
Less distributions from:
Net investment income		—	(c)		(0.30	)		(0.21	)		(0.19	)		(0.12	)
Net realized gains		—			(0.63	)		(2.23	)		(1.11	)		(0.36	)
Total distributions		—	(c)		(0.93	)		(2.44	)		(1.30	)		(0.48	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	7.72		$	6.41		$	11.81		$	13.10		$	11.75
Total Return (b)		20.49	%		(39.00	)%		8.92	%		22.72	%		8.46	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	4,530		$	5,853		$	13,916		$	12,545		$	10,026
Ratios to average net assets:
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Gross expenses		3.62	%		2.47	%		1.95	%		2.13	%		2.28	%
Net investment income		2.11	%		2.67	%		1.21	%		1.65	%		1.05	%
Portfolio turnover rate		67	%		52	%		50	%		40	%		33	%

(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
(c)	Amount is less than $0.01 per share.

The accompanying notes are an integral part of these financial statements.

78  Annual Report

LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended												For the Period 10/31/05* to 12/31/05
	12/31/09			12/31/08			12/31/07			12/31/06
Institutional Shares
Net asset value, beginning of period	$	7.51		$	12.92		$	12.66		$	10.79		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.20			0.26			0.23			0.19			—	(c)
Net realized and unrealized gain (loss)		1.88			(5.43	)		1.36			2.64			0.79
Total from investment operations		2.08			(5.17	)		1.59			2.83			0.79
Less distributions from:
Net investment income		(0.18	)		(0.22	)		(0.25	)		(0.15	)		—
Net realized gains		—			(0.02	)		(1.08	)		(0.81	)		—
Total distributions		(0.18	)		(0.24	)		(1.33	)		(0.96	)		—
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of period	$	9.41		$	7.51		$	12.92		$	12.66		$	10.79
Total Return (b)		27.76	%		(39.98	)%		12.88	%		26.22	%		7.90	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	311,570		$	245,604		$	418,584		$	343,931		$	135,690
Ratios to average net assets:
Net expenses (d)		0.91	%		0.90	%		0.88	%		0.94	%		1.46	%
Gross expenses (d)		0.91	%		0.90	%		0.88	%		0.94	%		1.46	%
Net investment income (loss) (d)		2.42	%		2.48	%		1.70	%		1.57	%		(0.20	)%
Portfolio turnover rate		129	%		72	%		84	%		68	%		12	%

Selected data for a share of capital stock outstanding throughout each period	Year Ended									For the Period 2/3/06* to 12/31/06
	12/31/09			12/31/08			12/31/07
Open Shares
Net asset value, beginning of period	$	7.51		$	12.90		$	12.64		$	11.49
Income (loss) from investment operations:
Net investment income (a)		0.16			0.23			0.17			0.12
Net realized and unrealized gain (loss)		1.90			(5.42	)		1.37			1.93
Total from investment operations		2.06			(5.19	)		1.54			2.05
Less distributions from:
Net investment income		(0.14	)		(0.18	)		(0.20	)		(0.09	)
Net realized gains		—			(0.02	)		(1.08	)		(0.81	)
Total distributions		(0.14	)		(0.20	)		(1.28	)		(0.90	)
Redemption fees		—	(c)		—	(c)		—			—	(c)
Net asset value, end of period	$	9.43		$	7.51		$	12.90		$	12.64
Total Return (b)		27.38	%		(40.18	)%		12.37	%		17.90	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	19,446		$	13,627		$	16,342		$	10,669
Ratios to average net assets:
Net expenses (d)		1.21	%		1.24	%		1.28	%		1.45	%
Gross expenses (d)		1.21	%		1.24	%		1.28	%		1.63	%
Net investment income (d)		1.98	%		2.23	%		1.29	%		1.10	%
Portfolio turnover rate		129	%		72	%		84	%		68	%

* Commencement of operations.

(a)	Beginning with the fiscal year ended 12/31/06, net investment income (loss) has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Amount is less than $0.01 per share.
(d)	Annualized for a period of less than one year.

The accompanying notes are an integral part of these financial statements.

Annual Report 79

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year
	Year Ended
	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of year	$	4.80		$	10.49		$	17.80		$	17.10		$	19.24
Income (loss) from investment operations:
Net investment income (a)		0.08			0.15			0.27			0.22			0.24
Net realized and unrealized gain (loss)		1.80			(5.19	)		(1.20	)		4.16			2.45
Total from investment operations		1.88			(5.04	)		(0.93	)		4.38			2.69
Less distributions from:
Net investment income		—			(0.14	)		(0.63	)		(0.25	)		(0.22	)
Net realized gains		—			(0.51	)		(5.75	)		(3.43	)		(4.61	)
Total distributions		—			(0.65	)		(6.38	)		(3.68	)		(4.83	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	6.68		$	4.80		$	10.49		$	17.80		$	17.10
Total Return (b)		39.17	%		(49.84	)%		(4.61	)%		26.31	%		14.77	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	40,243		$	74,640		$	129,725		$	698,166		$	582,909
Ratios to average net assets:
Net expenses		1.17	%		0.98	%		0.91	%		0.86	%		0.93	%
Gross expenses		1.21	%		0.98	%		0.91	%		0.86	%		0.93	%
Net investment income		1.55	%		1.81	%		1.48	%		1.20	%		1.24	%
Portfolio turnover rate		51	%		61	%		59	%		49	%		33	%
Selected data for a share of capital stock outstanding throughout each year
	Year Ended
	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of year	$	4.82		$	10.51		$	17.77		$	17.09		$	19.22
Income (loss) from investment operations:
Net investment income (a)		0.07			0.13			0.21			0.17			0.18
Net realized and unrealized gain (loss)		1.81			(5.20	)		(1.17	)		4.13			2.45
Total from investment operations		1.88			(5.07	)		(0.96	)		4.30			2.63
Less distributions from:
Net investment income		—			(0.11	)		(0.55	)		(0.19	)		(0.16	)
Net realized gains		—			(0.51	)		(5.75	)		(3.43	)		(4.61	)
Total distributions		—			(0.62	)		(6.30	)		(3.62	)		(4.77	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		0.01
Net asset value, end of year	$	6.70		$	4.82		$	10.51		$	17.77		$	17.09
Total Return (b)		39.00	%		(50.02	)%		(4.79	)%		25.83	%		14.47	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	27,920		$	30,052		$	89,779		$	137,358		$	62,020
Ratios to average net assets:
Net expenses		1.43	%		1.31	%		1.20	%		1.19	%		1.27	%
Gross expenses		1.48	%		1.31	%		1.20	%		1.19	%		1.27	%
Net investment income		1.28	%		1.56	%		1.17	%		0.89	%		0.93	%
Portfolio turnover rate		51	%		61	%		59	%		49	%		33	%

(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
(c)	Amount is less than $0.01 per share.

The accompanying notes are an integral part of these financial statements.

80  Annual Report

LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	Period Ended 12/31/09*
Institutional Shares
Net asset value, beginning of period		$	10.00
Loss from investment operations:
Net investment loss			—	(a)
Total from investment operations			—	(a)
Net asset value, end of period		$	10.00
Total Return			0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	74
Ratios to average net assets:
Net expenses (b)			1.30	%
Gross expenses (b)		1,825.00		%(c)
Net investment loss (b)			(1.30	)%
Portfolio turnover rate			0	%
Selected data for a share of capital stock outstanding throughout the period	Period Ended 12/31/09*
Open Shares
Net asset value, beginning of period		$	10.00
Loss from investment operations:
Net investment loss			—	(a)
Total from investment operations			—	(a)
Net asset value, end of period		$	10.00
Total Return			0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	50
Ratios to average net assets:
Net expenses (b)			1.60	%
Gross expenses (b)		1,825.00		%(c)
Net investment loss (b)			(1.60	)%
Portfolio turnover rate			0	%

*	Portfolio commenced operations on December 31, 2009.
(a)	Amount is less than $0.01 per share.
(b)	Annualized for a period of less than one year.
(c)	Gross expenses ratio was the result of the Portfolio being in existence for one day during the period ended 12/31/09.

The accompanying notes are an integral part of these financial statements.

Annual Report  81

LAZARD EMERGING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year
	Year Ended
	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of year	$	10.88		$	23.88		$	20.60		$	17.84		$	13.98
Income (loss) from investment operations:
Net investment income (a)		0.35			0.61			0.36			0.33			0.29
Net realized and unrealized gain (loss)		7.24			(11.78	)		6.41			4.98			5.42
Total from investment operations		7.59			(11.17	)		6.77			5.31			5.71
Less distributions from:
Net investment income		(0.46	)		(0.49	)		(0.29	)		(0.27	)		(0.18	)
Net realized gains		—			(1.34	)		(3.20	)		(2.28	)		(1.67	)
Total distributions		(0.46	)		(1.83	)		(3.49	)		(2.55	)		(1.85	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	18.01		$	10.88		$	23.88		$	20.60		$	17.84
Total Return (b)		69.82	%		(47.88	)%		33.05	%		30.32	%		41.40	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	8,497,341		$	3,295,983		$	5,270,497		$	2,744,753		$	1,413,671
Ratios to average net assets:
Net expenses		1.15	%		1.17	%		1.20	%		1.20	%		1.27	%(d)
Gross expenses		1.15	%		1.17	%		1.20	%		1.20	%		1.28	%
Net investment income		2.40	%		3.16	%		1.51	%		1.67	%		1.82	%
Portfolio turnover rate		49	%		43	%		53	%		46	%		48	%
Selected data for a share of capital stock outstanding throughout each year
	Year Ended
	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of year	$	11.05		$	24.17		$	20.82		$	17.99		$	14.06
Income (loss) from investment operations:
Net investment income (a)		0.29			0.52			0.29			0.26			0.20
Net realized and unrealized gain (loss)		7.35			(11.87	)		6.47			5.03			5.51
Total from investment operations		7.64			(11.35	)		6.76			5.29			5.71
Less distributions from:
Net investment income		(0.41	)		(0.43	)		(0.22	)		(0.18	)		(0.14	)
Net realized gains		—			(1.34	)		(3.20	)		(2.28	)		(1.67	)
Total distributions		(0.41	)		(1.77	)		(3.42	)		(2.46	)		(1.81	)
Redemption fees		—	(c)		—	(c)		0.01			—	(c)		0.03
Net asset value, end of year	$	18.28		$	11.05		$	24.17		$	20.82		$	17.99
Total Return (b)		69.14	%		(48.09	)%		32.71	%		29.93	%		41.31	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	3,478,654		$	1,135,042		$	1,467,458		$	441,673		$	195,944
Ratios to average net assets:
Net expenses		1.55	%		1.53	%(d)		1.47	%(d)		1.54	%		1.59	%
Gross expenses		1.55	%		1.54	%		1.48	%		1.54	%		1.59	%
Net investment income		1.94	%		2.72	%		1.19	%		1.30	%		1.21	%
Portfolio turnover rate		49	%		43	%		53	%		46	%		48	%

(a)	Net investment income has been computed using the average shares method. (b) Total returns reflect reinvestment of all dividends and distributions, if any. (c) Amount is less than $0.01 per share.
(d)	Portfolio leaving excess cash in demand deposit accounts may receive credits that are available to offset custody expenses. As a result of these credits, the net expenses were reduced by 0.01%.

The accompanying notes are an integral part of these financial statements.

82  Annual Report

LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/09				For the Period 9/30/08* to 12/31/08
Institutional Shares
Net asset value, beginning of period		$	6.54			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.01				0.01
Net realized and unrealized gain (loss)			7.09				(3.46	)
Total from investment operations			7.10				(3.45	)
Less distributions from:
Net investment income			(0.04	)			(0.01	)
Net realized gains			(0.42	)			—
Total distributions			(0.46	)			(0.01	)
Redemption fees			—	(c)			—
Net asset value, end of period		$	13.18			$	6.54
Total Return (b)			108.53	%			(34.54	) %
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	20,002			$	6,539
Ratios to average net assets:
Net expenses (d)			1.30	%			1.30	%
Gross expenses (d)			2.81	%			11.98	%
Net investment income (d)			0.07	%			0.34	%
Portfolio turnover rate			96	%			72	%
Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/09				For the Period 9/30/08* to 12/31/08
Open Shares
Net asset value, beginning of period		$	6.55			$	10.00
Income (loss) from investment operations:
Net investment loss (a)			(0.08	)			—	(c)
Net realized and unrealized gain (loss)			7.13				(3.45	)
Total from investment operations			7.05				(3.45	)
Less distributions from:
Net investment income			—	(c)			—
Net realized gains			(0.42	)			—
Total distributions			(0.42	)			—
Redemption fees			0.01				—
Net asset value, end of period		$	13.19			$	6.55
Total Return (b)			108.17	%			(34.60	)%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	42,975			$	357
Ratios to average net assets:
Net expenses (d)			1.60	%			1.60	%
Gross expenses (d)			2.54	%			28.95	%
Net investment loss (d)			(0.63	)%			(0.09	)%
Portfolio turnover rate			96	%			72	%

* Commencement of operations.
(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Amount is less than $0.01 per share.
(d)	Annualized for a period of less than one year.

The accompanying notes are an integral part of these financial statements.

Annual Report  83

LAZARD U.S. HIGH YIELD PORTFOLIO

	Year Ended
Selected data for a share of capital stock outstanding throughout each year	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of year	$	3.78		$	5.15		$	5.36		$	5.27		$	5.47
Income (loss) from investment operations:
Net investment income (a)		0.34			0.38			0.40			0.40			0.42
Net realized and unrealized gain (loss)		0.92			(1.37	)		(0.21	)		0.09			(0.19	)
Total from investment operations		1.26			(0.99	)		0.19			0.49			0.23
Less distributions from:
Net investment income		(0.34	)		(0.38	)		(0.40	)		(0.40	)		(0.43	)
Total distributions		(0.34	)		(0.38	)		(0.40	)		(0.40	)		(0.43	)
Redemption fees		—	(c)		—	(c)		—	(c)		—			—
Net asset value, end of year	$	4.70		$	3.78		$	5.15		$	5.36		$	5.27
Total Return (b)		34.66	%		(20.24	)%		3.63	%		9.71	%		4.33	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	87,568		$	34,262		$	56,278		$	68,452		$	75,100
Ratios to average net assets:
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Gross expenses		0.89	%		1.00	%		0.90	%		0.90	%		0.86	%
Net investment income		7.96	%		8.10	%		7.56	%		7.61	%		7.89	%
Portfolio turnover rate		17	%		33	%		20	%		29	%		22	%
	Year Ended
Selected data for a share of capital stock outstanding throughout each year	12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of year	$	3.79		$	5.17		$	5.37		$	5.29		$	5.48
Income (loss) from investment operations:
Net investment income (a)		0.33			0.37			0.39			0.39			0.40
Net realized and unrealized gain (loss)		0.94			(1.38	)		(0.21	)		0.08			(0.19	)
Total from investment operations		1.27			(1.01	)		0.18			0.47			0.21
Less distributions from:
Net investment income		(0.33	)		(0.37	)		(0.39	)		(0.39	)		(0.41	)
Total distributions		(0.33	)		(0.37	)		(0.39	)		(0.39	)		(0.41	)
Redemption fees		—	(c)		—	(c)		0.01			—			0.01
Net asset value, end of year	$	4.73		$	3.79		$	5.17		$	5.37		$	5.29
Total Return (b)		34.40	%		(20.35	)%		3.53	%		9.18	%		4.22	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	6,126		$	5,220		$	1,776		$	2,179		$	2,986
Ratios to average net assets:
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Gross expenses		1.21	%		1.74	%		2.14	%		2.12	%		1.78	%
Net investment income		7.74	%		7.89	%		7.24	%		7.29	%		7.47	%
Portfolio turnover rate		17	%		33	%		20	%		29	%		22	%

(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
(c)	Amount is less than $0.01 per share.

The accompanying notes are an integral part of these financial statements.

84Annual Report

LAZARD CAPITAL ALLOCATOR OPPORTUNISTIC STRATEGIES PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/09				For the Period 3/26/08* to 12/31/08
Institutional Shares
Net asset value, beginning of period		$	7.36			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.14				0.21
Net realized and unrealized gain (loss)			1.42				(2.59	)
Total from investment operations			1.56				(2.38	)
Less distributions from:
Net investment income			(0.12	)			(0.26	)
Total distributions			(0.12	)			(0.26	)
Redemption fees			—	(c)			—	(c)
Net asset value, end of period		$	8.80			$	7.36
Total Return (b)			21.21	%			(23.64	)%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	195,939			$	110,757
Ratios to average net assets:
Net expenses (d)			1.02	%			1.02	%
Gross expenses (d)			1.16	%			1.27	%
Net investment income (d)			1.72	%			3.01	%
Portfolio turnover rate			113	%			94	%
Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/09				For the Period 3/31/08* to 12/31/08
Open Shares
Net asset value, beginning of period		$	7.37			$	9.95
Income (loss) from investment operations:
Net investment income (a)			0.12				0.30
Net realized and unrealized gain (loss)			1.41				(2.64	)
Total from investment operations			1.53				(2.34	)
Less distributions from:
Net investment income			(0.10	)			(0.24	)
Total distributions			(0.10	)			(0.24	)
Redemption fees			—	(c)			—	(c)
Net asset value, end of period		$	8.80			$	7.37
Total Return (b)			20.71	%			(23.44	)%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	16,856			$	9,319
Ratios to average net assets:
Net expenses (d)			1.32	%			1.32	%
Gross expenses (d)			1.44	%			1.93	%
Net investment income (d)			1.44	%			4.68	%
Portfolio turnover rate			113	%			94	%

* Commencement of operations.
(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Amount is less than $0.01 per share.
(d)	Annualized for a period of less than one year.

The accompanying notes are an integral part of these financial statements.

Annual Report  85

   The Lazard Funds, Inc. Notes to Financial Statements December 31.2009

1. Organization
The Lazard Funds, Inc. (the “Fund”) was incorporated in Maryland on May 17, 1991 and is registered under the Investment Company Act of 1940, as amended (the “Act”), as an open-end management investment company. The Fund is comprised of thirteen no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard U.S. Equity Value Portfolio, Lazard U.S. Strategic Equity Portfolio, Lazard U.S. Mid Cap Equity Portfolio, Lazard U.S. Small-Mid Cap Equity Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Small Cap Equity Portfolio, Lazard Global Listed Infrastructure Portfolio (commenced operations on December 31, 2009), Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard U.S. High Yield Portfolio and Lazard Capital Allocator Opportunistic Strategies Portfolio. The Fund offers two different classes of shares of the Portfolios — Institutional Shares and Open Shares. Institutional Shares and Open Shares are identical, except as to minimum investment requirements and the services offered to and expenses borne by each class of shares. All Portfolios are operated as “diversified” funds, as defined in the Act.

2. Significant Accounting Policies
The accompanying financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The following is a summary of significant accounting policies:

(a) Valuation of Investments—Market values for securities listed on the New York Stock Exchange (“NYSE”), NASDAQ national market or other U.S. exchanges or markets are generally based on the last reported sales 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. The Fund values NASDAQ-traded securities at the NASDAQ Official Closing Price, which may not be the last reported sales price in certain instances. 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. Except as described below, securities listed on foreign exchanges are valued at the last reported sales price; securities listed on foreign exchanges that are not traded on

the valuation date are valued at the last quoted bid price. Options on stock and stock indices traded on national securities exchanges are valued as of the close of options trading on such exchanges (which is normally 4:10 p.m. Eastern time). Forward currency contracts are valued at the current cost of offsetting the contracts.

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. 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 by, or in accordance with procedures approved by, the Board of Directors (the “Board”).

If a significant event materially affecting the value of securities occurs 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, or when current market quotations otherwise are determined not to be readily available or reliable, such securities will be valued at their fair values as determined by, or in accordance with procedures approved by, the Board. The Valuation Committee of the Investment Manager may evaluate a variety of factors to determine the fair value of securities for which current market quotations are determined not to be readily available or reliable. 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. The fair value 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 reflect the affected securities’ values as determined in the judgment of the Board, 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 than the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ net asset values.

86  Annual Report

(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income is recorded on the ex-dividend date and interest income is accrued daily. The Portfolios amortize premiums and accrete discounts on fixed-income securities using the effective yield method. For the year ended December 31, 2009, only U.S. High Yield Portfolio traded in fixed income securities.

The Portfolios may be subject to taxes imposed by foreign countries in which they invest. Such taxes are generally based upon income earned or capital gains, realized or unrealized. The Portfolios accrue and apply such taxes to net investment income, net realized gains and net unrealized gains concurrent with the recognition of income or capital gains (realized and unrealized) from the applicable portfolio securities.

(c) Repurchase Agreements—In connection with transactions in repurchase agreements, the Fund’s custodian takes possession of the underlying collateral securities, the fair value of which, at all times, is required to be at least equal to the principal amount, plus accrued interest, of the repurchase transaction. If the seller defaults, and the fair value of the collateral declines, realization of the collateral by a Portfolio may be delayed or limited.

(d) Securities Lending—The Portfolios may lend securities to qualified borrowers in order to earn additional income. The terms of the lending agreements require that loans are secured at all times by cash, U.S. Government securities or irrevocable letters of credit in an amount at least equal to 102% of the market value of domestic securities loaned (105% in the case of foreign securities), plus accrued interest and dividends, determined on a daily basis. Cash collateral received is invested in State Street Navigator Securities Lending Prime Portfolio, a regulated investment company offered by State Street. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Portfolios could experience delays and costs in recovering the securities loaned or in gaining access to the collateral.

At December 31, 2009, there were no securities out on loan.

(e) Foreign Currency Translation and Forward Currency Contracts—The accounting records of the Portfolios are maintained in U.S. dollars. Portfolio securities and other assets and liabilities denominated in a foreign currency are translated daily into U.S. dollars at the prevailing rates of exchange. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rates on the respective transaction dates.

The Portfolios do not isolate the portion of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in their market prices. Such fluctuations are included in net realized and unrealized gain (loss) on investments. Net realized gain (loss) on foreign currency transactions represents net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on a Portfolio’s accounting records and the U.S. dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.

A forward currency contract is an agreement between two parties to buy or sell currency at a set price on a future date. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of the foreign currency relative to the U.S. dollar.

The U.S. dollar value of forward currency contracts is determined using forward exchange rates provided by quotation services. Daily fluctuations in the value of such contracts are recorded as unrealized appreciation (depreciation) on forward currency contracts. When the contract is closed, the Portfolios record a realized gain (loss) equal to the difference between the value at the time it was opened and the value at the time it was closed.

(f) Options Transactions—For hedging and investment purposes, certain Portfolios may purchase and write (sell) put and call options that are traded on U.S. and foreign securities exchanges and over-the-counter markets.

Annual Report  87

The risk associated with purchasing an option is that the Portfolios pay a premium whether or not the option is exercised. Additionally, the Portfolios bear the risk of loss of any change in market value should the counterparty not perform under the contract. The risk involved in writing an option is that, if the option is exercised, the underlying security or other assets could then be purchased or sold by the Portfolios at a disadvantageous price. Put and call options purchased are accounted for in the same manner as portfolio securities and other assets. When the Portfolios write an option, the premium received by the Portfolios is recorded as a liability and is subsequently adjusted to the current market value of the option written.

Transactions in options written for the Capital Allocator Opportunistic Strategies Portfolio during the year ended December 31, 2009 were as follows:

Written Options	Number of Contracts		Premiums
Options outstanding at beginning
of year		—	$	—
Options written		12,006		2,094,964
Options terminated in closing
purchase transactions		(6,593)		(902,670)
Options exercised		(949)		(252,461)
Options expired		(4,464)		(939,833)
Options outstanding at end of year		—	$	—

Transactions in options purchased for the Capital Allocator Opportunistic Strategies Portfolio during the year ended December 31, 2009 were as follows:

	Number of
Purchased Options	Contracts		Amount
Options outstanding at beginning
of year	—	$	—
Options purchased	5,656		1,905,832
Proceeds from sale of options	(5,656)		(696,581)
Loss on sale of options	—		(1,209,251)
Options outstanding at end of year	—	$	—

None of the other Portfolios in the Fund traded in options during the year ended December 31, 2009.

(g) Federal Income Taxes—The Fund’s policy is to continue to have each Portfolio qualify as a regulated investment company under Subchapter M of the Internal Revenue Code

(the “Code”) and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.

At December 31, 2009, the following Portfolios had available, for federal income tax purposes, unused realized capital losses which can be used to offset future realized capital gains as follows:

Portfolio		Expiring 2010		Expiring 2011
International Equity	$	—	$	11,175,692
U.S. High Yield		15,965,273		2,546,543
Portfolio		Expiring 2016		Expiring 2017
U.S. Equity Value	$	1,426,116	$	1,691,932
U.S. Strategic Equity		14,442,262		14,362,453
U.S. Mid Cap Equity		82,095,467		40,427,077
U.S. Small-Mid Cap Equity		13,150,355		8,769,356
International Equity		1,141,203		30,735,332
International Equity Select		876,488		2,653,216
International Strategic Equity		36,546,429		60,710,573
International Small Cap Equity		27,930,381		50,775,251
Emerging Markets Equity		—		1,470,429,982
U.S. High Yield		1,590,672		5,346,242
Capital Allocator Opportunistic
Strategies		7,181,781		28,789,057

In December of 2009, U.S. High Yield Portfolio had $20,597,061 of unused realized capital losses expire.

During year 2009, Developing Markets Equity Portfolio used $116,097 of realized capital loss carryover from a prior period.

Under current tax law, certain capital and net foreign currency losses realized after October 31 within the taxable year may be deferred and treated as occurring on the first day of the following tax year. For the tax year ended December 31, 2009, the following Portfolios elected to defer net capital and foreign currency losses arising between November 1, 2009 and December 31, 2009 as follows:

Portfolio		Amount
International Equity	$	427,347
International Equity Select		901,213
International Small Cap Equity		1,388,721
Capital Allocator Opportunistic Strategies		801,462

88  Annual Report

Management has analyzed the Fund’s tax positions, and has concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions taken on returns filed for open tax years (2005-2008), or expected to be taken in the Fund’s 2009 tax returns.

(h) Dividends and Distributions—The Fund intends to declare dividends from net investment income daily on shares of U.S. High Yield Portfolio and to pay such dividends monthly. Dividends from net investment income, if any, on shares of the other Portfolios will be declared and paid annually, except that Global Listed Infrastructure Portfolio’s dividends from net investment income (if any), will be declared and paid quarterly. During any particular year, net realized gains from investment transactions in excess of available capital loss carryforwards would be taxable to the Portfolio, if not distributed. The Portfolios intend to declare and distribute these amounts, at least annually, to shareholders;however, to avoid taxation, a second distribution may be required.

Income dividends and capital gains distributions are determined in accordance with federal income tax regulations which may differ from GAAP. These book/tax differences, which may result in distribution reclassifications, are primarily due to differing treatments of foreign currency transactions, wash sales and distributions from real estate investment trusts and partnerships. The book/tax differences relating to shareholder distributions may result in reclassifications among certain capital accounts.

The tax character of dividends and distributions paid during the years ended December 31, was as follows:

	Ordinary Income				Long-Term Capital Gain
Portfolio	2009		2008		2009		2008
U.S. Equity Value Institutional	$	113,788	$	156,785	$	—	$	—
Open		3,262		2,676		—		—
U.S. Strategic Equity Institutional		—		1,124,728		—		928,596
Open		—		118,843		—		123,044

	Ordinary Income				Long-Term Capital Gain
Portfolio		2009		2008		2009		2008
U.S. Mid Cap
Equity
Institutional	$	1,061,800	$	2,377,086	$	—	$	—
Open		362,964		1,273,350		—		—
U.S. Small-Mid
Cap Equity
Institutional		—		—		—		—
Open		—		—		—		—
International
Equity
Institutional		50,545		4,547,423		—		—
Open		—		462,171		—		—
International
Equity Select
Institutional		11,249		322,809		—		342,005
Open		2,723		439,528		—		503,650
International
Strategic Equity
Institutional		6,008,173		6,931,410		—		659,904
Open		269,925		325,040		—		45,090
International
Small Cap
Equity
Institutional		—		2,145,998		—		7,176,123
Open		—		692,577		—		3,460,853
Emerging
Markets
Equity
Institutional		213,098,743		249,267,089		—		238,093,563
Open		75,965,459		79,639,033		—		83,364,601
Developing
Markets Equity
Institutional		623,953		5,744		46,828		—
Open		1,223,075		—		99,545		—
U.S. High Yield
Institutional		5,077,021		3,765,781		—		—
Open		570,610		334,254		—		—
Capital Allocator
Opportunistic
Strategies
Institutional		2,690,734		4,062,392		—		—
Open		184,678		213,626		—		—

Annual Report  89

As of December 31, 2009, the components of distributable earnings on a tax basis, not disclosed elsewhere, were as follows:

Portfolio	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation (Depreciation) Including Foreign Currency			Other Timing Differences
U.S. Equity Value	$	—	$	—	$	352,407		$	(18,746	)
U.S. Strategic Equity		802,020		—		8,838,855			—
U.S. Mid Cap Equity		51,803		—		22,287,929			—
U.S. Small-Mid
Cap Equity		—		—		15,255,353			—
International Equity		3,861,293		—		8,002,419			—
International Equity
Select		234,423		—		293,189			—
International
Strategic Equity		1,906,638		—		29,712,374			(19,089	)
International Small
Cap Equity		993,370		—		(1,272,974	)		—
Global Listed
Infrastructure		—		—		—			—
Emerging Markets
Equity		41,192,595		—		1,784,100,978			—
Developing
Markets Equity		2,064,593		348,542		7,589,636			(39,927	)
U.S. High Yield		—		—		3,715,319			(230,128	)
Capital Allocator
Opportunistic
Strategies		58,575		—		12,830,048			(38,027	)

(i) Allocation of Expenses—Expenses not directly chargeable to a specific Portfolio are allocated among the Portfolios primarily on the basis of relative net assets. A Portfolio accrues distribution and service (12b-1) fees to its Open Shares. Each Portfolio’s income, expenses (other than class specific expenses) and realized and unrealized gains and losses are allocated proportionally each day between the classes based upon the relative net assets of each class.

(j) Expense Reductions—Portfolios leaving excess cash in demand deposit accounts may receive credits which are available to offset custody expenses. The Statements of Operations report gross custody expenses, and report the amount of such credits separately as an expense reduction.

(k) Redemption Fee—Each Portfolio may impose a 1.00% redemption fee (short-term trading fee) on Portfolio shares redeemed less than 30 days after such shares were acquired.

The fees are retained by each Portfolio and are included as paid in capital on its Statement of Assets and Liabilities. The fees are also shown on its Statement of Changes in Net Assets.

(l) Estimates—The preparation of financial statements in conformity with GAAP requires the Fund to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates.

3. Investment Management, Administration and Distribution Agreements

The Fund, on behalf of the Portfolios, has entered into an investment management agreement (the “Management Agreement”) with the Investment Manager. Pursuant to the Management Agreement, the Investment Manager regularly provides each Portfolio with investment research, advice and supervision and furnishes continuously an investment program for each Portfolio consistent with its investment objective and policies, including the purchase, retention and disposition of securities. For its services provided to the Fund, the Investment Manager earns a management fee, accrued daily and payable by each Portfolio monthly, at the annual rate set forth below as a percentage of its average daily net assets:

Portfolio	Annual Rate
U.S. Equity Value	0.75	%
U.S. Strategic Equity	0.75
U.S. Mid Cap Equity	0.75
U.S. Small-Mid Cap Equity	0.75
International Equity	0.75
International Equity Select	0.85
International Strategic Equity	0.75
International Small Cap Equity	0.75
Global Listed Infrastructure	0.90
Emerging Markets Equity	1.00
Developing Markets Equity	1.00
U.S. High Yield	0.55
Capital Allocator Opportunistic Strategies	1.00

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The Investment Manager has voluntarily agreed to reduce its fees and, if necessary, reimburse the following Portfolios if annualized operating expenses exceed the following percentages of average daily net assets for the respective Shares:

Portfolio Institutional Shares Open Shares

U.S. Equity Value	1.00	%	1.30	%
U.S. Strategic Equity	1.05		1.35
U.S. Mid Cap Equity	1.05		1.35
U.S. Small-Mid Cap Equity*	1.15		1.45
International Equity*	1.05		1.35
International Equity Select	1.15		1.45
International Strategic Equity**	1.15		1.45
International Small Cap Equity**	1.13		1.43
Global Listed Infrastructure	1.30		1.60
Emerging Markets Equity**	1.30		1.60
Developing Markets Equity	1.30		1.60
U.S. High Yield	0.55		0.85
Capital Allocator Opportunistic Strategies	1.02		1.32

*	Effective September 1, 2009, the Investment Manager voluntarily agreed to impose the expense limitation on the Portfolio.
**	Effective May 1, 2009, the Investment Manager voluntarily agreed to impose the expense limitation on the Institutional Shares.

During the period ended December 31, 2009, the Investment Manager waived its management fee and reimbursed the following Portfolios for other expenses as follows:

Portfolio Institutional Shares Open Shares

U.S. Equity Value	$	153,716	$	8,948
U.S. Strategic Equity		21,840		3,265
U.S. Small-Mid Cap Equity		7,076		956
International Equity Select		82,511		114,872
International Small Cap Equity		18,447		15,723
Global Listed Infrastructure		2,498		2,498
Developing Markets Equity		169,351		115,225
U.S. High Yield		217,505		26,187
Capital Allocator Opportunistic
Strategies		217,343		16,859

The Fund has entered into an administration agreement with State Street to provide certain administrative services. Each Portfolio bears the cost of such services at a fixed annual rate of $42,500, plus $7,500 per additional class, and 0.02% of average daily net assets up to $1 billion and 0.01%

of average daily net assets over $1 billion. State Street has agreed to waive $18,750 of its fee annually for the U.S. Equity Value and Developing Markets Equity Portfolios until each respective Portfolio’s net assets reach $25 million. In August 2009, Developing Markets Equity Portfolio’s net assets exceeded $25 million and the full base fee became effective.

The Fund has a distribution agreement with Lazard Asset Management Securities LLC (the “Distributor”), a wholly-owned subsidiary of the Investment Manager, to serve as the distributor for shares of each Portfolio. The Distributor bears the cost of printing and mailing prospectuses to potential investors and certain expenses in connection with the offering of Portfolio shares.

Under a Distribution and Servicing Plan, in accordance with Rule 12b-1 under the Act, each Portfolio pays a monthly fee to the Distributor, at an annual rate of 0.25% of the average daily net assets of its Open Shares, for distribution and servicing of accounts. The Distributor may make payments to certain financial institutions, securities dealers and other industry professionals for providing these services.

4. Directors’ Compensation

Certain Directors of the Fund are officers of the Investment Manager. The Fund pays each Director who is not an affiliated person of the Investment Manager or any of its affiliates an annual aggregate fee of $60,000, plus $4,000 per meeting attended in person ($1,500 per meeting attended by telephone) for the Fund, Lazard Retirement Series, Inc., Lazard Global Total Return and Income Fund, Inc. and Lazard World Dividend & Income Fund, Inc. (collectively, the “Lazard Funds”), each a registered management investment company advised by the Investment Manager, and reimburses them for travel and other out of pocket expenses for attending Board and committee meetings. These Directors also are paid $1,000 for each committee, subcommittee or other special meetings not held in conjunction with a Board meeting, as specifically authorized by the Board and held in connection with delegated Fund business. The Chairman of the Audit Committees of the Boards of the Lazard Funds also receives an additional annual fee of $5,000.

Annual Report   91

5. Securities Transactions and Transactions with Affiliates

Purchases and sales of portfolio securities (excluding short-term investments) for the period ended December 31, 2009 were as follows:

Portfolio	Purchases		Sales
U.S. Equity Value	$	5,044,620	$	4,451,912
U.S. Strategic Equity		48,867,747		50,766,182
U.S. Mid Cap Equity		133,837,521		149,669,514
U.S. Small-Mid Cap Equity		103,061,499		101,528,458
International Equity		88,255,435		90,292,301
International Equity Select		5,777,897		8,316,892
International Strategic Equity		352,556,300		343,878,255
International Small Cap Equtiy		35,596,923		83,228,389
Global Listed Infrastructure		—		—
Emerging Markets Equity		6,937,511,691		3,526,588,483
Developing Markets Equity		62,027,296		22,636,619
U.S. High Yield		48,135,257		11,614,591
Capital Allocator Opportunistic
Strategies		235,046,354		173,743,333

For the period ended December 31, 2009, no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.

6. Line of Credit

The Fund has a $50 million Line of Credit Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings is payable at State Street’s cost of funds plus 0.50% from January 1, 2009 to July 19, 2009 and at the higher of the Federal Funds rate or Overnight LIBOR rate plus 1.25% from July 20, 2009 to December 31, 2009, on an annualized basis. Under the Agreement, the Fund has also agreed to pay a 0.11% per annum fee from January 1, 2009 to July 19, 2009 and a 0.15% per annum fee from July 20, 2009 to December 31, 2009, on the unused portion of the commitment, payable quarterly in arrears. During the year ended December 31, 2009, the Fund had borrowings under the Agreement as follows:

Portfolio	Average Amount Borrowed*		Maximum Daily Loan Outstanding		Weighted Average Interest Rate			Number of Days Borrowings Were Outstanding
U.S. Mid Cap Equity	$	4,100,000	$	4,600,000		0.78	%	2
U.S. Strategic Equity		182,500		220,000		1.44		2
U.S. Small-Mid Cap
Equity		1,400,000		1,400,000		0.75		1
International Equity Select		346,667		650,000		1.31		27
International Strategic
Equity		3,266,250		9,200,000		1.44		8
International Small Cap
Equity		2,316,628		6,600,000		0.89		43
U.S. High Yield		2,083,387		6,070,000		1.46		31
Capital Allocator
Opportunistic
Strategies		3,257,143		3,900,000		0.59		7

* For days borrowings were outstanding.

7. Foreign Securities Investment Risks

Certain Portfolios invest in securities of foreign entities and in instruments denominated in foreign currencies which involve risks not typically associated with investments in domestic securities. Foreign investments carry special risks, such as exposure to currency fluctuations, less developed or less efficient trading markets, political instability, a lack of company information, differing auditing and legal standards, and, potentially, less liquidity. A Portfolio’s investments in emerging market countries are exposed to additional volatility. A Portfolio’s performance will be influenced by political, social and economic factors affecting companies in emerging market countries. Emerging market countries generally have economic structures that are less diverse and mature, and political systems that are less stable, than those of developed countries.

8. Contractual Obligations

The Fund enters into contracts in the normal course of business that contain a variety of indemnifications. The Fund’s maximum exposure under these arrangements is unknown. Management has reviewed the Fund’s existing contracts and expects the risk of loss to be remote.

9. Fair Value Measurements

Fair value is defined as the price that a Portfolio would receive to sell an asset, or would pay to transfer a liability, in an orderly transaction between market participants at the date of measurement. The Fair Value Measurements and Disclosures provisions of GAAP also establish a framework

92  Annual Report

for measuring fair value, and a three-level hierarchy for fair value measurement that is based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer, broadly, to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the Fund. Unobservable inputs reflect the Fund’s own assumptions about the assumptions that market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. Each investment’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the overall fair value

measurement. The three-level hierarchy of inputs is summarized below.

• Level 1 – unadjusted quoted prices in active markets for identical investments

• Level 2 – other significant observable inputs (including unadjusted quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

• Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

The inputs or methodolgy used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.

The following tables summarize the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2009:

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Balance as of December 31, 2009
U.S. Equity Value Portfolio
Common Stocks	$	8,682,984	$	—		$	—	$	8,682,984
Preferred Stock		25,364		—			—		25,364
Short-Term Investment		—		40,684			—		40,684
Total	$	8,708,348	$	40,684		$	—	$	8,749,032
U.S. Strategic Equity Portfolio
Common Stocks	$	74,460,091	$	—		$	—	$	74,460,091
Preferred Stock		217,832		—			—		217,832
Short-Term Investment		—		425,202			—		425,202
Total	$	74,677,923	$	425,202		$	—	$	75,103,125
U.S. Mid Cap Equity Portfolio
Common Stocks	$	209,813,933	$	—		$	—	$	209,813,933
Short-Term Investment		—		3,137,173			—		3,137,173
Total	$	209,813,933	$	3,137,173		$	—	$	212,951,106
U.S. Small-Mid Cap Equity Portfolio
Common Stocks*	$	71,997,093	$	—		$	—	$	71,997,093
Repurchase Agreement		—		3,593,000			—		3,593,000
Total	$	71,997,093	$	3,593,000		$	—	$	75,590,093
International Equity Portfolio
Common Stocks	$	5,598,360	$	148,760,320		$	—	$	154,358,680
Repurchase Agreement		—		3,198,000			—		3,198,000
Total	$	5,598,360	$	151,958,320		$	—	$	157,556,680
International Equity Select Portfolio
Common Stocks	$	3,608,868	$	4,715,501		$	—	$	8,324,369
Short-Term Investment		—		610			—		610
Total	$	3,608,868	$	4,716,111		$	—	$	8,324,979

Annual Report  93

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Balance as of December 31, 2009
International Strategic Equity Portfolio
Common Stocks	$	—	$	317,099,590		$	—	$	317,099,590
Preferred Stock		—		5,010,216			—		5,010,216
Short-Term Investment		—		7,677,148			—		7,677,148
Total	$	—	$	329,786,954		$	—	$	329,786,954
International Small Cap Equity Portfolio
Common Stocks**	$	—	$	67,613,834		$	—	$	67,613,834
Preferred Stock		—		875,062			—		875,062
Short-Term Investment		—		384,044			—		384,044
Total	$	—	$	68,872,940		$	—	$	68,872,940
Global Listed Infrastructure Portfolio
Short-Term Investment	$	—	$	100,000		$	—	$	100,000
Total	$	—	$	100,000		$	—	$	100,000
Emerging Markets Equity Portfolio
Common Stocks	$	2,316,089,390	$	8,707,940,683		$	—	$	11,024,030,073
Preferred Stocks		—		407,362,568			—		407,362,568
Repurchase Agreement		—		13,093,000			—		13,093,000
Short-Term Investment		—		495,727,451			—		495,727,451
Total	$	2,316,089,390	$	9,624,123,702		$	—	$	11,940,213,092
Developing Markets Equity Portfolio
Common Stocks	$	20,790,239	$	39,082,627		$	—	$	59,872,866
Short-Term Investment		—		2,885,319			—		2,885,319
Total	$	20,790,239	$	41,967,946		$	—	$	62,758,185
U.S. High Yield Portfolio
Corporate Bonds†	$	—	$	87,381,102		$	—	$	87,381,102
Warrant		—		—			5		5
Short-Term Investment		—		4,801,902			—		4,801,902
Total	$	—	$	92,183,004		$	5	$	92,183,009
Capital Allocator Opportunistic Strategies Portfolio
Exchange-Traded Funds	$	200,333,175	$	—		$	—	$	200,333,175
Closed-End Management Investment Company		8,222,500		—			—		8,222,500
Short-Term Investment		—		3,331,565			—		3,331,565
Total	$	208,555,675	$	3,331,565		$	—	$	211,887,240

*	There was one security characterized as Level 3 which was valued at zero for year 2009. The security was received from in-kind subscriptions with a value of zero.
**	There was one security characterized as Level 3 which was valued at zero from January 27, 2009 to December 31, 2009.
†	There were two securities characterized as Level 3 which were valued at zero for year 2009.

94  Annual Report

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value during the year ended December 31, 2009:

Description Balance as of
December 31,
2008 Accrued
Discounts
(Premiums) Realized
Gain
(Loss) Change in
Unrealized
Appreciation
(Depreciation) Purchases Sales Net Transfers
In/(Out) of
Level 3 Balance as of
December 31,
2009 Net Change in
Unrealized
Depreciation
from Investments
Still Held at
December 31,
2009

International Small Cap Equity Portfolio
Common Stock	$	288,667	$	—	$	—		$	(288,667	)	$	—	$	—		$	—	$	—	$	(288,667	)
U.S. High Yield Portfolio
Corporate Bond	$	284	$	629,096	$	(629,096	)	$	2,210,620		$	—	$	(2,210,904	)	$	—	$	—	$	—
Preferred Stock		256		—		—			(256	)		—		—			—		—		—
Warrants		10		—		13,350			(5	)		—		(13,350	)		—		5		—
Total	$	550	$	629,096	$	(615,746	)	$	2,210,359		$	—	$	(2,224,254	)	$	—	$	5	$	—

10. Derivative Instruments

Certain Portfolios may use derivative instruments, including forward currency contracts, for hedging purposes or to seek to increase returns.

The principal reason for a Portfolio’s writing or purchasing of covered call and put options is to realize, through the receipt of premiums and changes in market value, a greater return than would be realized on the underlying securities alone.

Capital Allocator Opportunistic Strategies Portfolio

During the year ended December 31, 2009, the cost of purchases and the proceeds from sales of forward currency contracts were $16,549,205 and $16,717,939, respectively.

The following table summarizes the effect of derivative instruments on its Statement of Operations for the year ended December 31, 2009. There were no derivative instruments open at December 31, 2009.

Amount

Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(342,337	)
Equity Price Risk:
Net realized gain on options	$	111,179
Net Change in Unrealized Appreciation (Depreciation)
on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	511,071

None of the other Portfolios in the Fund traded in derivatives during the year ended December 31, 2009.

11. Subsequent Events

Management has evaluated the possibility of subsequent events affecting the Fund’s financial statements through March 1, 2010. Management has determined that there are no such subsequent events that would require disclosure in the Fund’s financial statements through the above date, at which time the financial statements were issued.

12. New Accounting Pronouncement

On January 21, 2010, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2010-06. The ASU amends GAAP to add new requirements for disclosures about transfers into and out of Levels 1 and 2 and separate disclosures about purchases, sales, issuances, and settlements relating to Level 3 measurements. It also clarifies existing fair value disclosures about the level of disaggregation and about inputs and valuation techniques used to measure fair value. The application of ASU 2010-06 is required for fiscal years and interim periods beginning after December 15, 2009. At this time, the Fund’s management is evaluating the implications of ASU 2010-06.

Annual Report  95

    The Lazard Funds, Inc. Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders
The Lazard Funds, Inc.

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of The Lazard Funds, Inc. (the “Fund”, comprised of Lazard U.S. Equity Value Portfolio, Lazard U.S. Strategic Equity Portfolio, Lazard U.S. Mid Cap Equity Portfolio, Lazard U.S. Small-Mid Cap Equity Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Small Cap Equity Portfolio, Lazard Global Listed Infrastructure Portfolio (commenced operations December 31, 2009), Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard U.S. High Yield Portfolio and Lazard Capital Allocator Opportunistic Strategies Portfolio) as of December 31, 2009 and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the two years in the period then ended, or the period from commencement of operations to December 31, 2009, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2009, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights as stated above, present fairly, in all material respects, the financial position of each of the respective portfolios constituting The Lazard Funds, Inc. as of December 31, 2009, the results of their operations for the year or period then ended, the changes in their net assets for each of the two years in the period then ended, or the period from commencement of operations to December 31, 2009, and the financial highlights for the periods presented in conformity with U.S. generally accepted accounting principles.

ANCHIN, BLOCK & ANCHIN LLP

New York, New York
March 1, 2010

96  Annual Report

    The Lazard Funds, Inc. Board of Directors and Officers Information (unaudited)

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During Past 5 Years and Other Directorships Held(2)
Non-Interested Directors:
Kenneth S. Davidson (64)	Director (August 1995)	President, Davidson Capital Management Corporation; President, Aquiline Advisors LLC; Trustee, The Juilliard School; Chairman of the Board, Bridgehampton Chamber Music Festival; Trustee, American Friends of the National Gallery, London
Nancy A. Eckl (47)	Director (April 2007)	Former Vice President, Trust Investments, American Beacon Advisers, Inc. (“American Beacon”) and Vice President of certain funds advised by American Beacon; Trustee, College Retirement Equities Fund (eight accounts); Trustee, TIAA- CREF Funds (47 funds) and TIAA-CREF Life Funds (10 funds) and Member of the Management Committee of TIAA Separate Account VA-1
Lester Z. Lieberman (79)	Director (October 1991)	Private Investor; Chairman, Healthcare Foundation of New Jersey; Director, Cives Steel Co.; Director, Northside Power Transmission Co.; Advisory Trustee, New Jersey Medical School; Director, Public Health Research Institute; Trustee Emeritus, Clarkson University; Council of Trustees, New Jersey Performing Arts Center
Leon M. Pollack (69)	Director (August 2006)	Former Managing Director, Donaldson, Lufkin & Jenrette; Trustee, Adelphi University
Richard Reiss, Jr. (65)	Director (May 1991)	Chairman, Georgica Advisors LLC, an investment manager; Director, O’Charley’s, Inc., a restaurant chain
Robert M. Solmson (62)	Director (September 2004)	Director, Colonial Williamsburg Co.; Former Chief Executive Officer and Chairman, RFS Hotel Investors, Inc.; Former Director, Morgan Keegan & Co., Inc.; Former Director, Independent Bank, Memphis
Interested Directors(3):
Charles Carroll (49)	Chief Executive Officer, President and Director (June 2004)	Deputy Chairman and Head of Global Marketing of the Investment Manager
Ashish Bhutani (49)	Director (July 2005)	Chief Executive Officer of the Investment Manager; Vice Chairman of Lazard Ltd (since January 2010)

(1)	The address of each Director is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director also serves as a Director for each of the Lazard Funds (comprised of 19 investment portfolios). Each Director serves an indefinite term, until his or her successor is elected and each Director serves in the same capacity for the other Lazard Funds. All of the Independent Directors, except Mr. Lieberman, are also board members of Lazard Alternative Strategies Fund, L.L.C., a privately-offered fund registered under the Act and advised by an affiliate of the Investment Manager.
(3)	Messrs. Bhutani and Carroll are “interested persons” (as defined in the Act) of the Fund because of their positions with the Investment Manager.

The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300.

Annual Report  97

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During Past 5 Years
Officers(3):
Nathan A. Paul (37)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (51)	Treasurer (May 2003)	Vice President of the Investment Manager
Brian D. Simon (47)	Chief Compliance Officer (January 2009) and Assistant Secretary (November 2002)	Director (since January 2006) and Chief Compliance Officer (since January 2009); and previously Senior Vice President (2002 to 2005) of the Investment Manager
Tamar Goldstein (34)	Assistant Secretary (February 2009)	Vice President (since March 2009) and previously Counsel (October 2006 to February 2009) of the Investment Manager; Associate at Schulte Roth & Zabel LLP, a law firm, from May 2004 to October 2006
Cesar A. Trelles (35)	Assistant Treasurer (December 2004)	Fund Administration Manager of the Investment Manager

(1)	The address of each officer is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each officer serves for an indefinite term, until his or her successor is elected and qualified, and serves in the same capacity for the other Lazard Funds.
(3)	In addition to Charles Carroll, President, whose information is included in the Interested Directors section.

98Annual Report

    The Lazard Funds, Inc. Other Information (unaudited)

Proxy Voting
A description of the policies and procedures used to determine how proxies relating to Fund portfolio securities are voted is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the Securities and Exchange Commission (the “SEC”) website at http://www.sec.gov.

The Fund’s proxy voting record for the most recent 12-month period ended June 30 is available (1) without charge, upon request, by calling (800) 823-6300 or (2) on the SEC’s web-site at http://www.sec.gov. Information as of June 30 each year will generally be available by the following August 31.

Form N-Q
The Fund files a complete schedule of each Portfolio’s holdings for the first and third quarters of its fiscal year with the SEC on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330.

Board Consideration of Management Agreements
At the meeting of the Fund’s Board held on November 18-19, 2009, the Board considered the approval, for an additional annual period, of the Management Agreement between the Fund, on behalf of the Portfolios, and the Investment Manager. The Directors who are not interested persons (as defined in the Act) of the Fund (“Independent Directors”) were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided
Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services that the Investment Manager provides the Fund, including a discussion of the Investment Manager and its clients (of which the Lazard Funds complex of 18 funds comprises approximately $12.8 billion of the approximately $107.9 billion of total assets under the management of the Investment Manager and its global affiliates as of September 30, 2009). The representatives of the Investment Manager noted that the Investment Manager believes that the Fund continues to

benefit significantly from the infrastructure and services provided by the Investment Manager’s global investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels. The Directors also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience. The representatives of the Investment Manager reviewed the Fund’s distribution channels, the relationships with various intermediaries, marketing activities on behalf of the Portfolios over the past year and Portfolio asset flows and the growth or decline in asset levels.

The Directors considered the various services provided by the Investment Manager and considered the Investment Manager’s substantial research and portfolio management capabilities and that the Investment Manager also provides oversight of day-to-day operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements. The Directors also considered the Investment Manager’s administrative, accounting and compliance infrastructure and agreed that the Fund benefits from the extensive services of the Investment Manager’s global platforms, and accepted management’s assertion that such services are greater than those typically provided to a $12.8 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Management Fee, Expense Ratio and Performance Information
The Directors reviewed comparative management fee, expense ratio and performance (through September 30, 2009) information prepared by Lipper, noting the limitations of certain Lipper comparison groups (each, a “Group”). Lipper’s materials stated that Lipper’s reports are specifically designed to provide boards of directors the necessary fee, expense and investment performance information to help fulfill their advisory contract renewal responsibilities under Section 15(c) of the Act.

Management Fees and Expense Ratios. The Directors discussed the management fees and current expense ratios for each Portfolio, noting the methodology and assumptions used in the comparisons, including that Lipper’s management fee comparisons and the quintile rankings used therein (referred to below) did not include fixed dollar amounts paid to administrators (which, for the Fund, was

Annual Report  99

paid to the Fund’s third party administrator which is not an affiliate of the Investment Manager).

It was noted that, for at least one share class of each Portfolio, contractual management fees are in the first or second quintiles (lower than median) or, for the International Equity Select Portfolio, in the middle quintile of each Portfolio’s relevant Group and that expense ratios were within the range of those of the funds in the relevant Group. The Directors considered that the Investment Manager continues to voluntarily enter into fee waiver and expense reimbursement agreements for all of the Portfolios and that for certain of the Portfolios the Investment Manager was waiving management fees and/or reimbursing expenses.

The Directors also considered management fees paid to the Investment Manager by funds advised or sub-advised by the Investment Manager in the same Lipper category as the Portfolios, as well as the Investment Manager’s separately managed accounts with similar investment objectives, policies and strategies (for each Portfolio, collectively with such funds, “Similar Accounts”). The Directors discussed the fees paid to the Investment Manager compared to the fees paid to the Investment Manager by Similar Accounts. Representatives of the Investment Manager discussed the nature of the Similar Accounts and the differences, from the Investment Manager’s perspective, in services provided to the different types of Similar Accounts as compared to the services provided to the Portfolios. The Directors considered the relevance of the fee information provided for Similar Accounts managed by the Investment Manager, in light of the differences in services provided, to evaluate the appropriateness and reasonableness of the Portfolios’ management fees.

Performance. The Directors noted that, as discussed below, the Portfolios’ investment returns were variously above, at or below the median ranges of the relevant Group and/or Lipper category (“Category”) over measurement periods up to ten years through September 30, 2009.

The performance of the U.S. Equity Value, International Strategic Equity, Emerging Markets Equity, Developing Markets Equity and Capital Allocator Portfolios was generally above the Group and Category medians for the periods in both share classes (except for the one-year period for the Emerging Markets Equity Portfolio). Performance of the

U.S. Small-Mid Cap and International Equity Portfolios, for one or both classes, was at or above the Group and Category medians for most of the periods shown, and was in the first (best) quartile of the Group and Category in the one- and two-year periods. Performance of the U.S. Strategic Equity and U.S. High Yield Portfolios was generally competitive. Performance of the U.S. Mid Cap Equity, International Equity Select and International Small Cap Equity Portfolios was below the Group and Category medians for most of the periods.

The Directors had received regular updates on the Investment Manager’s efforts in respect of underperforming Portfolios.

Investment Manager Profitability and Economies of Scale
The Directors reviewed information prepared by the Investment Manager for each Portfolio concerning the estimated expenses incurred, and profits realized, by the Investment Manager and its affiliates resulting from the Management Agreement, including the projected dollar amount of expenses allocated and profit received by the Investment Manager for the calendar year ending December 31, 2009 (assuming that asset levels were unchanged from September 30, 2009 to December 31, 2009) and for calendar year 2010 assuming that the average net assets used in the 2009 projection increased by 20%, and the method used to determine such expenses and profits. The representatives of the Investment Manager stated that neither the Investment Manager nor its affiliates receive any significant indirect benefits from the Investment Manager acting as investment adviser to the Portfolios. The Investment Manager’s representatives stated that the broker-dealer that is treated as an affiliate of the Investment Manager did not effect trades for the Portfolios in 2009 and the Investment Manager did not benefit from money flow (float) in connection with transactions in the Portfolios’ shares. The Investment Manager’s representatives reviewed with the Board detailed information provided on the Investment Manager’s brokerage practices and the Portfolios’ brokerage allocation, commission payments and soft dollar commissions and benefits. The representatives of the Investment Manager reminded the Board that the Investment Manager is continuing to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that

100  Annual Report

the Fund does not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolios’ Open Shares.

The profitability percentages were within ranges determined by relevant court cases not to be so disproportionately large that they bore no reasonable relationship to the services rendered. Representatives of the Investment Manager stated that the Investment Manager believed the profits are not unreasonable in light of the services provided and other factors. The Directors considered the Investment Manager’s estimated and projected profitability with respect to each Portfolio as part of their evaluation of whether the Portfolio’s fee under the Management Agreement bears a reasonable relationship to the mix of services provided by the Investment Manager, including the nature, extent and quality of such services, and evaluated profitability in light of the relevant circumstances for each Portfolio, including the trend in asset growth or decline. Representatives of the Investment Manager noted that profitability levels had been relatively stable in recent years. Representatives of the Investment Manager and the Directors discussed ways economies of scale could be realized and how they could be shared, including the Investment Manager’s reinvestment of money back into its business, adding discounts to a Portfolio’s management fee schedule as a Portfolio’s assets increase or by instituting relatively low management fees from inception. It was noted that a discussion of economies of scale should be predicated on increasing assets and that, for Portfolios with declining or stable assets, the extent to which the Investment Manager may have realized any economies of scale would be reduced. The Directors determined that they would continue to consider potential material economies of scale.

At the conclusion of these discussions, each of the Directors expressed the opinion that he or she had been furnished with sufficient information to make an informed business decision with respect to the renewal of the Management Agreement. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations.

• The Board concluded that the nature, extent and quality of the services provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research services and other services (as discussed

	above) associated with a nearly $108 billion global asset management business.
•	The Board was generally satisfied with the overall per- formance of the Portfolios, but would continue to more closely monitor performance of the U.S. Mid Cap Equity, International Equity Select and International Small Cap Equity Portfolios.
•	The Board concluded that each Portfolio’s fee paid to the Investment Manager was reasonable in light of the considerations discussed above.
•	The Board recognized that economies of scale may be realized as the assets of the Portfolios increase and determined that they would continue to consider potential material economies of scale.

The Board considered these conclusions and determinations in their totality and, without any one factor being dispositive, determined that approval of the Management Agreement for each Portfolio was in the best interests of the Portfolio and its shareholders.

Global Listed Infrastructure Portfolio
At the meeting of the Fund’s Board held on November 18-19, 2009, the Board considered the approval of a new Management Agreement between the Fund, on behalf of Lazard Global Listed Infrastructure Portfolio (the “New Portfolio”), and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided
Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services that the Investment Manager intends to provide the New Portfolio, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds complex of 18 funds comprises approximately $12.8 billion of the approximately $107.9 billion of total assets under the management of the Investment Manager and its global affiliates as of September 30, 2009). The representatives of the Investment Manager noted that the Investment Manager believes that

Annual Report  101

the New Portfolio will benefit significantly from the infrastructure and services provided by the Investment Manager’s global investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels. The Directors also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience.

The Directors considered the various services to be provided by the Investment Manager and considered the Investment Manager’s substantial research and portfolio management capabilities and that the Investment Manager also would provide oversight of day-to-day operations, including fund accounting and administration and assistance in meeting legal and regulatory requirements. The Directors also considered the Investment Manager’s administrative, accounting and compliance infrastructure and agreed that the New Portfolio was expected to benefit from the extensive services of the Investment Manager’s global platforms, and accepted management’s assertion that such services would be greater than those typically provided to a $12.8 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Management Fee, Expense Ratio and Performance Information
Management Fee and Expense Ratios. Representatives of the Investment Manager reviewed the proposed management fee and anticipated expense ratio for the New Portfolio and the comparisons provided by Lipper, which compared contractual management fees and projected expense ratios for the New Portfolio to comparison groups chosen by Lipper, and the Directors noted the methodology and assumptions used in the comparisons, including that Lipper’s management fee comparisons and the quintile rankings used therein (referred to below) did not include fixed dollar amounts paid to administrators (which, for the Fund, was paid to the Fund’s third party administrator which is not an affiliate of the Investment Manager). The management fee was at (for Open Shares) or lower than (for Institutional Shares) the Group median. The projected expense ratio was within the range of those of the funds in the Group.

The Directors also considered management fees paid to the Investment Manager by Similar Accounts. The Directors discussed the fees to be paid to the Investment Manager compared to the fees paid to the Investment Manager by

Similar Accounts. Representatives of the Investment Manager discussed the nature of the Similar Accounts and the differences, from the Investment Manager’s perspective, in services to the different types of Similar Accounts as compared to the services to be provided to the New Portfolio. The Directors considered the relevance of the fee information provided for Similar Accounts managed by the Investment Manager, in light of the differences in services provided, to evaluate the appropriateness and reasonableness of the New Portfolio’s management fee.

Performance. The New Portfolio’s proposed portfolio managers gave a presentation on the strategies to be employed for the New Portfolio and the New Portfolio’s portfolio management team, including professional biographies. The Directors considered the performance of a composite of accounts managed by the portfolio managers in a similar strategy to those contemplated for the New Portfolio, noting that the composites had achieved attractive performance compared to market and sector indices.

Investment Manager Profitability and Economies of Scale
Representatives of the Investment Manager noted discussions regarding considerations of profitability and economies of scale in respect of the Fund’s existing Portfolios and noted that because the New Portfolio is newly formed, has not commenced operations and the eventual aggregate amount of the New Portfolio’s assets was uncertain, the Investment Manager was not able to provide the Directors with specific information concerning the cost of services to be provided to the New Portfolio and the expected profits to be realized by the Investment Manager and its affiliates from their relationships with the New Portfolio and the extent to which economies of scale would be realized as the New Portfolio grows and whether fee levels would reflect such economies of scale, if any. The Directors determined to revisit this issue no later than when it next reviewed the investment management fee in connection with renewal of the Management Agreement. Neither the Investment Manager nor its affiliates was expected to receive any significant indirect benefits from the Investment Manager acting as investment adviser to the New Portfolio. The Investment Manager’s representatives reviewed with the Board detailed information provided on the Investment Manager’s brokerage practices.

At the conclusion of these discussions, each of the Directors expressed the opinion that he or she had been furnished

102  Annual Report

with sufficient information to make an informed business decision with respect to the approval of Management Agreement with respect to the New Portfolio. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations.

• The Board concluded that the nature, extent and quality of the services to be provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research and other services (as discussed above) associated with a nearly $108 billion global asset management business.

• The Board was satisfied with the resources the Investment Manager was to devote to management of the New Portfolio.

• The Board concluded that the New Portfolio’s fee to be paid to the Investment Manager was reasonable in light of the considerations discussed above.

• The Board recognized that economies of scale may be realized as the assets of the New Portfolio increase. The Board determined they would seek to have the Investment Manager share any material economies of scale with the New Portfolio.

The Board considered these conclusions and determinations in their totality and, without any one factor being dispositive, determined that approval of the Management Agreement for the New Portfolio was in the best interests of the New Portfolio and its shareholders.

Annual Report  103

   The Lazard Funds, Inc. Tax Information Year Ended December 31, 2009 (unaudited)

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2009:

Of the dividends paid by the Portfolios, the corresponding percentage represents the amount of each dividend which will be subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The same information will be reported in conjunction with your 2009 1099-DIV.

Portfolio	Percentage
U.S. Equity Value		100.00	%
U.S. Strategic Equity		—
U.S. Mid Cap Equity		100.00
U.S. Small-Mid Cap Equity		—
International Equity		100.00
International Equity Select		100.00
International Strategic Equity		100.00
International Small Cap Equity		100.00
Global Listed Infrastructure		—
Emerging Markets Equity		65.66
Developing Markets Equity		11.36
U.S. High Yield		—
Capital Allocator Opportunistic Strategies		44.86

Of the dividends paid by the Portfolios, the corresponding percentage represents the amount of each dividend which will qualify for the dividends received deduction available to corporate shareholders.

Portfolio	Percentage
U.S. Equity Value		100.00	%
U.S. Strategic Equity		—
U.S. Mid Cap Equity		100.00
U.S. Small-Mid Cap Equity		—
International Equity		—
International Equity Select		—
International Strategic Equity		—
International Small Cap Equity		—
Global Listed Infrastructure		—
Emerging Markets Equity		—
Developing Markets Equity		—
U.S. High Yield		—
Capital Allocator Opportunistic Strategies		21.38

Pursuant to Section 871 of the Code, the corresponding amounts have been designated as qualified short-term gains for purposes of exempting withholding of tax on such distributions to U.S. nonresident shareholders.

Portfolio	Amount
U.S. Equity Value	$	—
U.S. Strategic Equity		—
U.S. Mid Cap Equity		—
U.S. Small-Mid Cap Equity		—
International Equity		—
International Equity Select		—
International Strategic Equity		—
International Small Cap Equity		—
Global Listed Infrastructure		—
Emerging Markets Equity		—
Developing Markets Equity		1,784,535
U.S. High Yield		—
Capital Allocator Opportunistic Strategies		—

104  Annual Report

The Lazard Funds, Inc.

30 Rockefeller Plaza

New York, New York 10112-6300

Telephone: 800-823-6300

http://www.LazardNet.com

Investment Manager

Lazard Asset Management LLC

30 Rockefeller Plaza

New York, New York 10112-6300

Telephone: 800-823-6300

Distributor

Lazard Asset Management Securities LLC

30 Rockefeller Plaza

New York, New York 10112-6300

Custodian

State Street Bank and Trust Company

One Lincoln Street

Boston, Massachusetts 02111

Transfer Agent and Dividend Disbursing Agent

Boston Financial Data Services, Inc.

P.O. Box 8514

Boston, Massachusetts 02266-8514

Telephone: 800-986-3455

Independent Registered Public Accounting Firm

Anchin, Block & Anchin LLP

1375 Broadway

New York, New York 10018

http://www.anchin.com

Legal Counsel

Stroock & Stroock & Lavan LLP

180 Maiden Lane

New York, New York 10038-4982

http://www.stroock.com

Performance information as of the most recent month end is available online at www.LazardNet.com.

Lazard Asset Management LLC

30 Rockefeller Plaza

New York, NY 10112-6300

800-823-6300

www.LazardNet.com

© 2010 Lazard Asset Management LLC

12/09 LZDPS013

Lazard Funds

ITEM 2. CODE OF ETHICS.

          The Registrant has adopted a code of ethics that applies to the Registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

          The Registrant’s Board of Directors (the “Board”) has determined that Lester Z. Lieberman, Robert M. Solmson and Nancy A. Eckl, members of the Audit Committee of the Board, are audit committee financial experts as defined by the Securities and Exchange Commission (the “SEC”). Mr. Lieberman, Mr. Solmson and Ms. Eckl are “independent” as defined by the SEC for purposes of audit committee financial expert determinations.

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $590,100 in 2008 and $509,100 in 2009.

(b) Audit-Related Fees. There were no fees billed in the Reporting Periods by the Auditor to the Registrant for assurance and related services that are reasonably related to the performance of the audit of the Registrant’s financial statements and are not reported under paragraph (a) of this Item 4. There were no fees billed in the Reporting Periods for assurance and related services by the Auditor to the Registrant’s investment adviser or any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant (“Service Affiliates”).

(c) Tax Fees. The aggregate fees billed in the Reporting Periods by the Auditor to the Registrant for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $95,600 in 2008 and $99,100 in 2009. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

There were no fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates.

(d) All Other Fees. There were no fees billed in the Reporting Periods by the Auditor to the Registrant for products and services other than the services reported in paragraphs (a) through (c) of this Item.

There were no fees billed in the Reporting Periods by the Auditor to Service Affiliates.

(e) Audit Committee Pre-Approval Policies and Procedures. The Registrant’s Audit Committee pre-approves the Auditor’s engagements for audit and non-audit

services to the Registrant and, as required, non-audit services to Service Affiliates on a case-by-case basis. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor’s independence. There were no services provided by the Auditor that were approved pursuant to (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) None.

(g) Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant for the Reporting Periods were $95,600 in 2008 and $99,100 in 2009. There were no fees billed in the Reporting Periods by the Auditor to Service Affiliates.

(h) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

          Not applicable.

ITEM 6. INVESTMENTS

          Not applicable.

ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED END MANAGEMENT INVESTMENT COMPANIES.

          Not applicable.

ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.

          Not applicable.

ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.

          Not applicable.

ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

          There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board during the period covered by this report.

ITEM 11. 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-CSR 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-CSR 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 second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

(a)(1)  Code of Ethics referred to in Item 2.

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

(a)(3)  Not applicable.

(b)      Certifications of principal executive and principal financial officers as required by Rule 30a-2(b) 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 duly authorized.

The Lazard Funds, Inc.

By	/s/ Charles Carroll
	Charles Carroll
	Chief Executive Officer
Date	March 10, 2010

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	March 10, 2010

By	/s/ Stephen St. Clair
	Stephen St. Clair
	Chief Financial Officer
Date	March 10, 2010