N-CSRS

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:	6/30/10

ITEM 1.   REPORTS TO STOCKHOLDERS.

June 30, 2010

Lazard Funds Semi-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

Lazard Emerging Markets Equity Blend

    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	Investment Overviews
10	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
46	Lazard Emerging Markets Equity Portfolio
48	Lazard Developing Markets Equity Portfolio
50	Lazard Emerging Markets Equity Blend Portfolio
52	Lazard U.S. High Yield Portfolio
57	Lazard Capital Allocator Opportunistic Strategies Portfolio
59	Notes to Portfolios of Investments
62	Statements of Assets and Liabilities
66	Statements of Operations
70	Statements of Changes in Net Assets
78	Financial Highlights
92	Notes to Financial Statements
102	Board of Directors and Officers Information
104	Other Information

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

Distributed by Lazard Asset Management Securities LLC.

Semi-Annual Report  1

   The Lazard Funds, Inc. Investment Overviews

U.S. Equities: Return to Volatility

Volatility returned to the markets over the six-month period ended June 30, 2010, as investors became increasingly wary of a global recovery amid the ongoing sovereign debt crisis in the Eurozone and concerns of a potential slowdown in China. Stocks rallied earlier in the year on the back of strong corporate earnings announcements, but failed to maintain the positive momentum as the U.S. recovery appeared to have hit a soft patch with housing, consumer confidence, and retail sales data coming in below expectations. The recent job data also disappointed investors due to weaker-than-expected additions in the private sector, where a recovery is key to improvement in the housing market and consumer spending. A series of recent events, including ongoing financial reforms and the oil spill in the Gulf of Mexico, also hinted at more aggressive government influence on business, which further dampened investors’ sentiment.

By sector, the economically defensive consumer staples outperformed amid the volatile market. The financials sector also performed well on the expectation that the impact of the financial reform legislation may not be as severe as previously expected. Meanwhile, the energy sector underperformed amid concerns over the oil spill in the Gulf of Mexico. The information technology sector was also weak due to concerns of a potential slowdown in the global recovery.

International Equities: Break in the Recovery

World equity markets were volatile throughout the first half of 2010, posting generally positive returns in the first quarter, then falling sharply from mid-April to late May as European sovereign debt fears intensified. Uncertainty over growth prospects in the United States and China also weighed on stocks. European markets—particularly those with strained governmental finances, such as Greece, Italy, and Spain—were weak, especially during the second quarter, as the large bailout package did little to calm investors’ fears. Additionally, austerity measures by several European governments led to concerns that the economic recovery could be held back.

Asian markets finished the first half of the year with mixed performance, as investors were wary of an economic and real estate slowdown in China, as well as political tensions on the Korean peninsula. Although Japan relatively outperformed in both the first and second quarters, stocks in the country were hurt by concerns of a global economic slow-

down, and strong yen appreciation versus the U.S. dollar and euro weighed on export-oriented Japanese companies.

The industrials sector outperformed for the first half of the year, as did the consumer staples and consumer discretionary sectors, while the utilities sector underperformed. Materials companies, particularly commodity producers, lagged over concerns about weaker Chinese growth and the prospects of greater taxation, and the energy sector notably underperformed due to slowing demand and the oil spill in the Gulf of Mexico. The financials sector also underperformed due to regulatory concerns.

Emerging Markets Equities: Challenging First Half

Following an extraordinarily strong year in 2009, shares in emerging markets stocks experienced some challenges in the first half of 2010. Deepening concerns over a fiscal crisis in Greece and other European countries, as well as the anticipated effects on global economic activity, offset excellent fundamentals in the emerging markets. Chinese authorities reintroduced a currency basket for the renminbi, elevating its value as well as the value of several other Asian currencies. The Morgan Stanley Capital International (MSCI^®) Emerging Markets (EM^®) Index (the EM Index) declined by over 6% for the period, with Asia outperforming both the Latin American and Eastern European regions.

Brazilian equities declined due to concerns over weaker growth that could impact commodity prices. Further, shares of Petrobras, a large Brazilian oil company, were volatile because of issues surrounding the financing of its large projected capital expenditures. Colombian equities performed particularly well due to a more stable environment in the country. Despite a debilitating earthquake in Chile, equities in that country finished the first half of the year higher.

The majority of Asian emerging markets recorded positive performance in the first half of 2010. Both Indonesian and Thai equities continued to perform well on robust economic results, despite the challenging political situation in Thailand. Relatively weak performance in the information technology sector held back Taiwanese and South Korean shares over the first half of the year. South Korean shares were also challenged by exacerbated tensions with North Korea. Additionally, expectations of slower global growth led to a sharp decline in the won. Chinese stocks declined, as investors became more concerned about global growth and

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as Chinese authorities enacted further measures to moderate bank lending to the property sector. Equities in the Philippines rose impressively on signs of more robust economic activity.

Due in part to their proximity to Europe and its current economic problems, mixed performance was registered across the Middle East and Africa. Hungarian equities fell sharply, as the government announced a tax on the financials sector aimed at plugging its fiscal deficit. Polish shares also declined over the period. Share prices fell in South Africa and Russia on worries about commodity prices. Turkish equities were the region’s relative bright spot, helped by stable economic performance.

By sector, consumer staples, health care, telecom services, consumer discretionary, and utilities outperformed the EM Index. The energy, materials, and information technology sectors were the weakest performers over the six months ended June 30, 2010.

High Yield Fixed Income: Flight to Better Quality

For the first half of 2010, the high yield market lagged investment-grade corporate securities and U.S. Treasurys, but outperformed equities. High-yield market spreads widened by approximately 75 basis points in the first half of the year, mostly derived from an approximate 90 basis points fall in Treasury yields. BB spreads widened by about 60 basis points, while CCC spreads widened by 140 basis points. It appeared that the CCC sector was starting to lag and give up some of the gains it booked in 2009 and in early 2010. Mutual fund flows were quite volatile, with large inflows in January and June that offset large outflows in February and May. New high-yield bond issuance in the U.S. market was approximately $98 billion for the first half of 2010, as companies continued to refinance.

In the United States, the effects of government stimulus appeared to be fading during the period. Overall, market risk appeared to be rising, with government budgets that were seemingly misaligned with their low interest rates. While Treasury yields were miniscule, Treasury returns were strong, likely as a result of flight-to-quality issues.

Lazard U.S. Equity Value Portfolio

For the six months ended June 30, 2010, the Lazard U.S. Equity Value Portfolio’s Institutional Shares posted a total

return of –8.00%, while Open Shares posted a total return of –8.07%, as compared with the –5.12% return for the Russell 1000 Value^® Index.

Over the first six months of 2010, stock selection in the consumer discretionary sector added to relative performance. Comcast performed well due to execution of its plan to reduce capital expenditures, which resulted in significant free-cash-flow growth. Darden Restaurants also helped returns, as the company reported better-than-expected earnings during the period.

Stock selection in the industrials sector detracted from performance over the six-month period. Foster Wheeler, an international engineering and construction contractor, declined amid concerns about the sustainability of global economic growth.

Stock selection in the health care sector also detracted from returns. Shares of Pfizer lagged due to uncertainty surrounding the overall impact of health care reform and concerns over the company’s spending plan for new initiatives.

An overweight position and stock selection in the information technology sector also detracted from performance, as Microsoft underperformed during the period despite strong earnings reports.

Lazard U.S. Strategic Equity Portfolio

For the six months ended June 30, 2010, the Lazard U.S. Strategic Equity Portfolio’s Institutional Shares posted a total return of –8.98%, while Open Shares posted a total return of –9.10%, as compared with the –6.65% return for the S&P 500^® Index.

The Portfolio was helped by stock selection in the consumer discretionary sector. AutoZone, an auto parts retailer, reported sales growth well above expectations and further boosted per-share earnings by buying back 3% of its outstanding shares. Shares of Family Dollar Stores, a national discount retailer, also performed well, as the company’s target consumers began to rebound. We subsequently exited the position in Family Dollar Stores during the period.

Stock selection in the energy sector was also a positive relative contributor to the Portfolio’s returns, as ConocoPhillips outperformed due to continued signs of progress in its

Semi-Annual Report  3

restructuring efforts and less exposure to deepwater activity in the Gulf of Mexico versus its peers.

Conversely, stock selection in the consumer staples sector detracted from performance over the period. Shares of Walgreen Co. lagged due to weak same-store sales and disappointing cost controls within its selling, general, and administrative expenses.

Stock selection in the information technology sector also hurt returns. A lack of exposure to Apple detracted from relative performance, as the company performed strongly on expectations of positive sales trends of its various products. Shares of Symantec, one of the largest makers of security software, declined due to concerns over the integration of an authentication business that the company announced it would buy.

Stock selection in the health care sector detracted from returns as well. Shares of Pfizer lagged due to uncertainty surrounding the overall impact of health care reform and concerns over the company’s spending plan for new initiatives.

Lazard U.S. Mid Cap Equity Portfolio

For the six months ended June 30, 2010, the Lazard U.S. Mid Cap Equity Portfolio’s Institutional Shares posted a total return of –2.13%, while Open Shares posted a total return of –2.36%, as compared with the –2.06% return for the Russell Midcap^® Index.

During the period, the Portfolio benefited from stock selection in the consumer discretionary sector, as positions in AutoZone and Family Dollar Stores added to performance.

Stock selection in the information technology sector also benefited returns. Shares of Fidelity National Information Services, a payment services provider, rose sharply following news of buyout talks with Blackstone Group. Shares of NetApp, a data storage provider, rose after the company’s forecast for next quarter’s sales came in higher than expected.

Stock selection in the materials sector helped returns over the period as well. Our positions in Cliffs Natural Resources and Ball Corp. performed well. Shares of Ball Corp., a manufacturer of metal and plastic packaging for food and household products, performed well after announcing plans to sell non-core assets and further strengthen its position in China.

Conversely, stock selection in the industrials sector detracted from returns. Corrections Corp. of America, which runs correctional facilities on behalf of the government, was weak amid concern over tightening state budgets. A position in Foster Wheeler also hurt performance.

Stock selection in health care detracted from returns as well, as Warner Chilcott declined on lower-than-expected revenues for the most recent period due to slower sales of Actonel, a drug used in the treatment of osteoporosis.

Stock selection in the consumer staples sector detracted from the Portfolio’s performance as well. Ralcorp, a manufacturer of various food products, declined after it missed analysts’ estimates for its second fiscal quarter earnings.

Lazard U.S. Small-Mid Cap Equity Portfolio

For the six months ended June 30, 2010, the Lazard U.S. Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of –2.71%, while Open Shares posted a total return of –2.85%, as compared with the –1.69% return for the Russell 2500^® Index.

Stock selection in the consumer staples sector helped the Portfolio’s relative returns during this period, mainly due to mergers and acquisitions activity. Bare Escentuals, a makeup manufacturer, received a takeover bid in January 2010, and American Italian Pasta, one of the largest producers of dry pasta in North America, received a takeover offer in June. Following this news, we exited both positions during the period.

Stock selection in the materials sector also helped relative performance, as several companies in the paper products industry enjoyed strong pricing power as the economy improved. Rock-Tenn, a paper and packaging manufacturer, performed well following a better-than-expected earnings report. Following the March 2010 purchase of shares of Schweitzer-Mauduit International, a manufacturer of specialty papers for the tobacco industry, the company rose based on strong first-quarter earnings.

Conversely, stock selection in the health care sector detracted from returns over the period. Shares of XenoPort, a biotechnology company, fell sharply during the period, as one of its deeper-stage pipeline drugs was surprisingly rejected. This failure broke our investment thesis for the company, and we eliminated the stock from the Portfolio.

4  Semi-Annual Report

Medicis Pharmaceutical, Warner Chilcott, and Talecris Bio-therapeutics also fell on company specific issues. Medicis Pharmaceutical and Talecris Biotherapeutics were sold from the Portfolio during the period as well.

Stock selection in the industrials sector also hurt returns. Positions in A123 Systems and Ener1, lithium ion battery companies, fell considerably over the period due to increasing competition in the industry. We subsequently eliminated both positions from the Portfolio. Hill International, a construction consulting company, dropped significantly in May, as the company posted lower-than-expected earnings caused by the cancellation of several projects due to weak market conditions. We also exited the position in Hill International during the period.

In the financials sector, both Waddell & Reed Financial and Piper Jaffray detracted from performance. Waddell & Reed dropped significantly due to concerns about flows into its asset management unit, while Piper Jaffray declined following a disappointing earnings announcement. We exited the position in Piper Jaffray during the period.

Lazard International Equity Portfolio

For the six months ended June 30, 2010, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of –11.87%, while Open Shares posted a total return of –12.01%, as compared with the –13.23% return for the MSCI Europe, Australasia, and Far East (EAFE^®) Index (the EAFE Index).

The Portfolio’s relative outperformance over the first six months of 2010 was driven mostly by stock selection, as holdings in the telecom services and the financials sectors added to returns. Within telecom services, the Portfolio benefited from Rogers Communications, which performed well due to an improving earnings outlook, and TELUS, which, despite lower first-quarter earnings, performed well due to encouraging growth in its wireless and data services revenues. We exited the position in TELUS during the period as its share price approached our valuation expectations.

Stock selection in the financials sector was also accretive to relative returns. Daito Trust Construction outperformed significantly, as its order growth exceeded expectations due to

fewer cancellations and an increased willingness to lend by banks.

Exposure to emerging markets also added to relative returns, as did stock selection in the energy sector, as the Portfolio benefited by minimizing losses with the early sale of a position in BP following the oil spill.

Conversely, stock selection in industrials and materials negatively impacted the Portfolio, as both sectors were hurt by the perceived slowdown in the global recovery and by recessionary fears, prompting investors to rotate into sectors that are perceived as more defensive. In the industrials sector, Italian infrastructure group Atlantia was hurt by potential fiscal reforms by the Italian government.

In the materials sector, Potash Corp. of Saskatchewan declined amid worries regarding oversupply, price pressure on potash, and potentially weaker demand and the proposed Australian windfall tax on mining companies led major companies in the industry to halt project development.

Lazard International Equity Select Portfolio

For the six months ended June 30, 2010, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of –12.47%, while Open Shares posted a total return of –12.56%, as compared with the –13.23% return of the EAFE Index.

The Portfolio was helped by stock selection in the financials and industrials sectors over the six-month period. In the financials sector, Banco Santander rose following the Portfolio’s purchase of shares in May. The company performed well based on its opportunistic asset purchases during the period, as well as Spain’s well-received austerity measures and the joint bailout plan announced by the IMF and European governments.

Industrial companies Assa Abloy and Fanuc also added to the Portfolio’s relative returns, as both companies benefited from improved end-demand for their products.

Despite the strong stock selection in the sector, the Portfolio’s underweight position in industrials hurt returns over the period. Similarly, underweighting in the consumer discretionary sector also detracted from performance, as did overweight positions in the energy and financials sectors.

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Lazard International Strategic Equity Portfolio

For the six months ended June 30, 2010, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of –9.88%, while Open Shares posted a total return of –9.97%, as compared with the –13.23% return for the EAFE Index.

For the six-month period, stock selection in the energy sector helped performance. Aker Solutions, which experienced a recovery in the demand for its services during the period, and Cairn Energy, on the back of their timely completion of an oil transportation pipeline which coincided with their production ramp-up, performed well.

Positions in the banking industry helped relative performance in the financials sector. Commercial International Bank, an Egyptian bank, performed strongly as the credit outlook for the country remained very promising, and Lloyds Banking Group rose from a low valuation after announcing an encouraging profit outlook.

Exposure to emerging markets helped the Portfolio’s relative performance over the period as well.

Conversely, the Portfolio’s low exposure to, and stock selection in, the industrials sector hurt performance for the period. A position in Thales declined due to poor earnings, and Secom, a Japanese security company, also detracted from returns over the period. The position in Thales was subsequently sold during the period.

Stock selection in the Asian (ex-Japan) region also detracted from returns, as QBE Insurance Group in Australia declined due to disappointing profits. We subsequently exited the position in QBE Insurance Group during the period.

Lazard International Small Cap Equity Portfolio

For the six months ended June 30, 2010, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of –5.99%, while Open Shares posted a total return of –6.12%, as compared with the –7.10% return for the MSCI EAFE Small Cap Index.

During the period, the Portfolio benefited from strong stock selection in Japan and Continental Europe, particularly Sweden and Germany. Stock selection in Asia ex-Japan was a negative contributor, as was an overweight position in Europe and an underweight exposure to the United Kingdom.

In the industrials sector, the Portfolio was helped by a position in Indutrade, a Sweden-based technology sales group, which performed well due to optimism over several of its recent acquisitions. Kongsberg Gruppen, a Norway-based international technology company, appreciated based on strong order flow throughout the first half of the year. Asahi Holdings, a Japan-based holding company primarily engaged in the recycling of precious metals and conservation business, performed well after it raised earnings estimates for its current fiscal year.

Stock selection in the health care sector also benefited performance, as shares of Elekta, a Swedish medical technology provider, continued to outperform. In the company’s year-end earnings, which were published in June 2010, sales, profits, and orders came in well ahead of expectations.

In the consumer discretionary sector, a position in Unicharm PetCare, a producer of pet food products and pet toiletry goods, added value. At the beginning of May, we participated in a cash tender offer and exited the position.

Stock selection in the information technology sector hurt the Portfolio’s returns, as ASM International, a developer, manufacturer, and marketer of semiconductor production equipment, underperformed.

Stock selection in the materials sector also detracted from performance over the period. James Hardie Industries, a manufacturer of cement products and systems for building construction, fell after it reported disappointing earnings and eliminated its dividend.

Stock selection in the energy sector also detracted from the Portfolio’s performance. TGS-Nopec Geophysical, a Nor-way-based seismic company, sold off along with many other companies in the energy sector after the explosion on the Deepwater Horizon oil rig in the Gulf of Mexico. While TGS-Nopec has no direct exposure to the accident, the company does generate a significant portion of its revenues from the Gulf of Mexico.

Lazard Global Listed Infrastructure Portfolio

For the six months ended June 30, 2010, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of –7.85%, while Open Shares posted a total return of –7.99%. The benchmark returns for the six months ended June 30, 2010 were –5.02% for the UBS Global 50/50

6  Semi-Annual Report

Infrastructure & Utilities^® Index, and –9.84% for the MSCI World^® Index.

Tokyo Gas was one of the biggest contributors to the Portfolio over the period. The share price benefited from the combination of gas sales volumes returning to growth, as well as from the surprise increase in the company’s dividend. This supports our thesis that Tokyo Gas can expand its business to tap latent gas demand in the Kanto region while increasing return to shareholders.

Red Electrica, Spain’s monopoly electricity transmission network, was the biggest detractor from performance. The Spanish Government froze tariffs and announced a review of all electricity costs, including transmission.

Transurban Group also fell during the period following an AUD 542.3 million capital raising in May to fund an acquisition and two motorway enhancement projects. The company’s Board of Directors also rejected two revised acquisition proposals, based on the view that neither proposal offered sufficient value or certainty for the Board to recommend these proposals to security holders. Subsequently, a large shareholder decided to sell its substantial stake in Transurban at a sizeable discount to its market value, placing further pressure on an already-depressed share price following the 1-for-11 rights capital raising.

Lazard Emerging Markets Equity Portfolio

For the six months ended June 30, 2010, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of –3.44%, while Open Shares posted a total return of –3.61%, as compared with the –6.17% return for the EM Index.

Over the period, the Portfolio was helped by a position in Souza Cruz, a Brazilian tobacco company, which outperformed on the expectation that its volumes and margins would remain stable. Shares of Turkiye Is Bankasi (or Isbank), a Turkish bank, rose after it announced strong earnings results in April. Punjab National Bank also performed well after reporting good earnings, and on the expectation that the bank’s strong low-cost deposit franchise and high reserve coverage will allow it to continue generating high returns in a rising interest rate environment. Stock selection in the financials sector, as well as within Brazil and South Africa, helped returns over the past six months.

Conversely, a position in Hon Hai Precision Industry, a leading provider of contract electronics manufacturing services, declined due to concerns about the impact of wage inflation in China. Shares of Shougang Concord International Enterprises fell due to concerns regarding increasing input costs, while First Quantum Minerals, a mining company that operates within Africa, declined on the back of falling copper prices and heightened political risk. Stock selection in the telecom services sector and in China also detracted from returns over the period.

Lazard Developing Markets Equity Portfolio

For the six months ended June 30, 2010, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of –4.40%, while Open Shares posted a total return of –4.55%, as compared with the –6.17% return for the EM Index.

Stock selection in the energy sector helped relative performance over the period. Shares in Eurasia Drilling, a Russian oil and gas well drilling company, performed well following a high number of meters drilled and its growing footprint in the Caspian region. Cairn Energy performed well on the back of their timely completion of an oil transportation pipeline which coincided with their production ramp-up.

An overweight position and stock selection in the consumer discretionary sector also added to relative returns for the six-month period. Hering, a Brazilian apparel retailer, outperformed due to its robust growth prospects and attractive valuations. Tofas Turk Otomobil Fabrikasi, a Turkish auto company, outperformed on the back of improving domestic demand and rising profitability.

Conversely, stock selection in the materials sector detracted from the Portfolio’s returns. Vale, a Brazilian metals and mining company, pulled back from prior strength due to worries about a slowdown in the Chinese real estate market stemming from tighter lending standards. Shares of Fibria Celulose, a Brazilian pulp producer, underperformed on concerns that slowing economic growth would drag pulp prices lower.

Stock selection in China also detracted from performance, as shares of China State Construction International, a Chinese construction company, lagged on signs that the Chinese government is reigning in fixed-asset investment in the country.

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Lazard U.S. High Yield Portfolio

For the six months ended June 30, 2010, the Lazard U.S. High Yield Portfolio’s Institutional Shares posted a total return of 3.37%, while Open Shares posted a total return of 3.22%, as compared with the 4.74% return for the Merrill Lynch High Yield Master II^® Index (the High Yield Index).

Over the first six months of 2010, the Portfolio underperformed the High Yield Index as lower-quality securities and the bank and finance sectors continued to rally. Towards the end of June, performance momentum in these sectors slowed, but they still outperformed for the period. The Portfolio modestly outperformed the High Yield Index in the second quarter.

Performance was helped by overweight positions in the gaming/hotel and capital goods sectors and by underweight positions in electric utilities. Performance was hurt by very limited exposure to the bank and finance sectors, which materially outperformed. A number of bank and finance credits are rated BB, which helped bolster the BB sector return. The Portfolio’s higher-quality focus hurt performance in the first quarter and helped performance in the second quarter. As of June 30, 2010, approximately 59% of the Portfolio is rated BB- or better by Standard & Poor’s.

Lazard Capital Allocator Opportunistic Strategies Portfolio

For the six months ended June 30, 2010, the Lazard Capital Allocator Opportunistic Strategies Portfolio’s Institutional Shares and Open Shares both returned –4.09%. The benchmark returns for the six months ended June 30, 2010 were –9.84% for the MSCI World Index and –2.87% for the Global Market Exposure (GME) Index.¹

We entered the second quarter with a defensive posture, including recently increased allocations to several volatility

hedges, such as an investment in an exchange-traded fund based on the CBOE Volatility^® Index. We moved toward a more aggressive stance in June when markets had somewhat stabilized. This included raising equity exposure and reducing investments to diversifying investments.

Thematic equity investments (generally considered by the Investment Manager to be most consistent with its overall market viewpoint), a 36% allocation, had generally negative absolute performance, as the markets remained in a largely risk-averse mode. Exposures, through underlying funds, to the small-cap equity space in Brazil and Chile helped to offset losses in the energy, materials, and U.S. savings themes.

Contrarian equity investments (generally considered by the Investment Manager to reflect non-consensus or out of favor views), an 11% allocation, were the weakest area in the Portfolio. Most investments fell along with the equity markets, and there were no mitigating areas of strength. This includes exposure, though underlying funds, to equity investments in U.S. technology companies and oil and gas companies.

Diversifying investments (typically in areas that tend to be uncorrelated to the overall equity market), a 43% allocation that consists mostly of fixed-income instruments, were positive for the quarter. Volatility was the best-performing investment for two consecutive months. Similarly, gold and U.S. Government fixed-income exposures had positive performance, helping to offset losses in other parts of the Portfolio.

Discounted equity and fixed-income investments, a 10% allocation, were negative, as closed-end funds in general performed in line with the GME Index.

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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 Lazard Asset Management LLC, the Fund’s Investment Manager (the “Investment Manager”), or State Street Bank and Trust Company, the Fund’s Administrator (“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 Investment Manager and the securities described in this report are as of June 30, 2010; 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 securities discussed may, in aggregate, represent only a small percentage of each Portfolio’s holdings. It should not be assumed that securities identified and discussed were, or will be, profitable, or that the investment decisions made 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 or each Portfolio’s summary prospectus for a more detailed discussion of each Portfolio’s investment objectives, strategies, risks and fees.

¹ 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).

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   The Lazard Funds, Inc. Performance Overviews (unaudited)

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 June 30, 2010
	One Year		Since Inception		†
Institutional Shares**		12.10%		–1.36%
Open Shares**		11.74%		–1.60%
Russell 1000 Value Index		16.92%		–2.51%

*	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.

10  Semi-Annual Report

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 June 30, 2010
	One Year		Five Years		Since Inception	†
Institutional Shares**		10.94%		–1.41%	–1.29%
Open Shares**		10.62%		–1.68%	–1.56%
S&P 500 Index		14.42%		–0.79%	–0.89%

*	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.

Semi-Annual Report  11

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*
Periods Ended June 30, 2010
	One Year		Five Years		Ten Years
Institutional Shares**		23.36%		–0.07%		6.30%
Open Shares**		23.03%		–0.35%		5.99%
Russell Midcap Index		25.13%		1.22%		4.24%

*	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.

12  Semi-Annual Report

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*
Periods Ended June 30, 2010
	One Year		Five Years		Ten Years
Institutional Shares**		28.56%		2.60%		6.95%
Open Shares**		28.05%		2.26%		6.66%
Russell 2500 Index		24.03%		0.98%		4.15%
Russell 2000/2500 Linked Index		24.03%		1.01%		3.33%

*	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 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.

Semi-Annual Report  13

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*
Periods Ended June 30, 2010
	One Year		Five Years		Ten Years
Institutional Shares**		6.18%		1.32%		–0.13%
Open Shares**		5.91%		1.01%		–0.40%
MSCI EAFE Index		5.92%		0.88%		0.15%

*	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.

14  Semi-Annual Report

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 June 30, 2010
	One Year		Five Years		Since Inception		†
Institutional Shares**		3.52%		–0.73%		1.33%
Open Shares**		3.26%		–1.04%		1.05%
MSCI EAFE Index		5.92%		0.88%		2.72%

*	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.

Semi-Annual Report  15

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 June 30, 2010

	Institutional Shares			Open Shares
	One	Since		One	Since
	Year	Inception	†	Year	Inception	†
International Strategic Equity Portfolio**	9.31%	1.30%		9.16%	–2.15%
MSCI EAFE Index	5.92%	–0.54%		5.92%	–3.45%

*	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 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.

16Semi-Annual Report

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*
Periods Ended June 30, 2010

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	12.34%	–2.20%	3.84%
Open Shares**	12.32%	–2.46%	3.50%
MSCI EAFE Small Cap Index	12.30%	1.09%	5.01%

*	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.

Semi-Annual Report  17

Lazard Global Listed Infrastructure Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Listed Infrastructure Portfolio, UBS Global 50/50 Infrastructure & Utilities^® Index and MSCI World^® Index*

Total Returns*
Period Ended June 30, 2010

	Since
	Inception	†
Institutional Shares**	–7.85%
Open Shares**	–7.99%
UBS Global 50/50 Infrastructure & Utilities Index	–5.02%
MSCI World Index	–9.84%

*	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. 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 UBS Global 50/50 Infrastructure & Utilities Index tracks a 50% exposure to the global developed-market utilities sector and a 50% exposure to the global developed-market infrastructure sector. The MSCI World Index is a market capitalization-weighted index of companies representative of the market structure of 24 developed market countries in North America, Europe, and the Asia/Pacific region. 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 Portfolio was December 31, 2009.

18  Semi-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 (EM^®) Index*

Average Annual Total Returns*
Periods Ended June 30, 2010

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	25.02%	13.92%	12.14%
Open Shares**	24.59%	13.53%	11.83%
MSCI EM Index	23.15%	12.73%	10.02%

*	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 EM 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.

Semi-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 EM Index*

Average Annual Total Returns*
Periods Ended June 30, 2010

	One	Since
	Year	Inception	†
Institutional Shares**	33.17%	16.45%
Open Shares**	32.74%	16.17%
MSCI EM Index	23.15%	11.65%

*	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 EM 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.

20Semi-Annual 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*
Periods Ended June 30, 2010

	One	Five	Ten
	Year	Years	Years
Institutional Shares**	17.36%	5.38%	3.68%
Open Shares**	17.22%	5.13%	3.43%
Merrill Lynch High Yield Master II Index	27.53%	7.10%	7.12%

*	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.

Semi-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 June 30, 2010

	Institutional Shares			Open Shares
	One	Since		One	Since
	Year	Inception	†	Year	Inception	†
Capital Allocator Opportunistic Strategies Portfolio**	7.22%	–5.13%		6.92%	–5.22%
MSCI World Index	10.20%	–11.38%		10.20%	–11.27%
Global Market Exposure Index	12.17%	–2.21%		12.17%	–2.21%

*	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 24 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  Semi-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 January 1, 2010 through June 30, 2010 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 1/1/10		Ending Account Value 6/30/10			Expenses Paid During Period* 1/1/10 - 6/30/10		Annualized Expense Ratio During Period 1/1/10 - 6/30/10
U.S. Equity Value Portfolio
Institutional Shares
Actual		$1,000.00		$	920.00		$4.76		1.00%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,019.84		$5.01		1.00%
Open Shares
Actual		$1,000.00		$	919.30		$6.19		1.30%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,018.35		$6.51		1.30%
U.S. Strategic Equity Portfolio
Institutional Shares
Actual		$1,000.00		$	910.20		$4.97		1.05%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,019.59		$5.26		1.05%
Open Shares
Actual		$1,000.00		$	909.00		$6.39		1.35%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,018.10		$6.76		1.35%
U.S. Mid Cap Equity Portfolio
Institutional Shares
Actual		$1,000.00		$	978.70		$4.42		0.90%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,020.33		$4.51		0.90%
Open Shares
Actual		$1,000.00		$	976.40		$5.70		1.16%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,019.03		$5.82		1.16%

Semi-Annual Report  23

Portfolio	Beginning Account Value 1/1/10		Ending Account Value 6/30/10			Expenses Paid During Period* 1/1/10 - 6/30/10		Annualized Expense Ratio During Period 1/1/10 - 6/30/10
U.S. Small-Mid Cap Equity Portfolio
Institutional Shares
Actual		$1,000.00		$	972.90		$5.26		1.08%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,019.46		$5.39		1.08%
Open Shares
Actual		$1,000.00		$	971.50		$6.71		1.37%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,017.99		$6.86		1.37%
International Equity Portfolio
Institutional Shares
Actual		$1,000.00		$	881.30		$4.54		0.97%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,019.97		$4.88		0.97%
Open Shares
Actual		$1,000.00		$	879.90		$5.99		1.28%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,018.42		$6.43		1.28%
International Equity Select Portfolio
Institutional Shares
Actual		$1,000.00		$	875.30		$5.35		1.15%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,019.09		$5.76		1.15%
Open Shares
Actual		$1,000.00		$	874.40		$6.74		1.45%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,017.60		$7.25		1.45%
International Strategic Equity Portfolio
Institutional Shares
Actual		$1,000.00		$	901.20		$4.22		0.89%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,020.36		$4.48		0.89%
Open Shares
Actual		$1,000.00		$	900.30		$5.67		1.20%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,018.82		$6.03		1.20%
International Small Cap Equity Portfolio
Institutional Shares
Actual		$1,000.00		$	940.10		$5.44		1.13%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,019.19		$5.66		1.13%
Open Shares
Actual		$1,000.00		$	938.80		$6.87		1.43%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,017.70		$7.15		1.43%
Global Listed Infrastructure Portfolio
Institutional Shares
Actual		$1,000.00		$	921.50		$6.19		1.30%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,018.35		$6.51		1.30%
Open Shares
Actual		$1,000.00		$	920.10		$7.61		1.60%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,016.87		$7.99		1.60%

24  Semi-Annual Report

Portfolio	Beginning Account Value 1/1/10		Ending Account Value 6/30/10			Expenses Paid During Period* 1/1/10 - 6/30/10		Annualized Expense Ratio During Period 1/1/10 - 6/30/10
Emerging Markets Equity Portfolio
Institutional Shares
Actual		$1,000.00		$	965.60		$5.46		1.12%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,019.24		$5.61		1.12%
Open Shares
Actual		$1,000.00		$	963.90		$7.23		1.48%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,017.44		$7.42		1.48%
Developing Markets Equity Portfolio
Institutional Shares
Actual		$1,000.00		$	956.00		$6.30		1.30%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,018.35		$6.51		1.30%
Open Shares
Actual		$1,000.00		$	954.50		$7.75		1.60%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,016.86		$8.00		1.60%
Emerging Markets Equity Blend Portfolio**
Institutional Shares
Actual		$1,000.00		$	999.00		$1.26		1.35%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,003.40		$1.26		1.35%
Open Shares
Actual		$1,000.00		$	999.00		$1.54		1.65%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,003.12		$1.54		1.65%
U.S. High Yield Portfolio
Institutional Shares
Actual		$1,000.00		$	1,033.70		$2.77		0.55%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,022.07		$2.76		0.55%
Open Shares
Actual		$1,000.00		$	1,032.20		$4.28		0.85%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,020.58		$4.26		0.85%
Capital Allocator Opportunistic Strategies Portfolio
Institutional Shares
Actual		$1,000.00		$	959.10		$4.95		1.02%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,019.74		$5.11		1.02%
Open Shares
Actual		$1,000.00		$	959.10		$6.41		1.32%
Hypothetical (5% Return Before Expenses)		$1,000.00		$	1,018.25		$6.61		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 181/365 (to reflect one-half year period).
**	Emerging Markets Equity Blend Portfolio commenced operations on May 28, 2010.

Semi-Annual Report  25

   The Lazard Funds, Inc. Portfolio Holdings Presented by Sector June 30, 2010 (unaudited)

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		7.0	%	12.9	%	18.2	%	16.4	%	11.7	%
Consumer Staples		10.1		12.6		7.3		2.5		9.4
Energy		11.1		9.5		7.3		6.1		7.5
Financials		22.9		13.0		16.9		18.8		25.4
Health Care		14.6		13.9		9.7		9.4		9.6
Industrials		8.2		10.0		9.9		14.7		9.8
Information Technology		10.0		20.2		13.9		15.7		12.3
Materials		6.0		5.8		9.7		6.8		5.6
Telecommunication Services		4.0		—		—		—		5.8
Utilities		3.8		1.1		5.8		4.8		1.0
Short-Term Investments		2.3		1.0		1.3		4.8		1.9
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		5.6	%	13.8	%	15.2	%	—	%	5.3	%
Consumer Staples		11.8		11.0		3.9		—		12.6
Energy		9.3		5.8		7.3		—		6.5
Financials		27.6		29.4		11.2		—		22.4
Health Care		12.2		9.2		12.7		—		—
Industrials		4.0		8.1		26.6		46.4		5.5
Information Technology		14.3		9.3		14.7		1.2		17.7
Materials		6.9		5.4		5.3		—		15.6
Telecommunication Services		6.3		3.8		1.5		—		9.0
Utilities		—		1.2		—		50.1		1.6
Short-Term Investments		2.0		3.0		1.6		2.3		3.8
Total Investments		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Sector*	Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Equity Blend Portfolio		Lazard Capital Allocator Opportunistic Strategies Portfolio
Consumer Discretionary		13.2	%	7.1	%	3.5	%
Consumer Staples		1.6		6.5		10.8
Energy		15.1		9.4		7.0
Financials		26.4		23.0		11.0
Health Care		—		—		1.9
Industrials		7.4		7.3		14.2
Information Technology		15.4		15.7		14.8
Materials		8.1		11.6		13.0
Telecommunication Services		4.8		9.7		0.3
Utilities		3.4		2.4		3.7
Other		—		—		17.5
Short-Term Investments		4.6		7.3		2.3
Total Investments		100.0	%	100.0	%	100.0	%

* Represents percentage of total investments.

26  Semi-Annual Report

   The Lazard Funds, Inc. Portfolio Holdings Presented by Credit Rating June 30, 2010 (unaudited)

S&P Credit Rating*	Lazard U.S. High Yield Portfolio
BBB		4.8	%
BBB-		6.9
BB+		9.9
BB		11.7
BB-		23.8
B+		18.7
B		7.3
B-		8.7
CCC+		2.9
CCC		0.9
CCC-		0.2
Short-Term Investment		4.2
Total Investments		100.0	%

* Represents percentage of total investments.

Semi-Annual Report  27

   The Lazard Funds, Inc. Portfolios of Investments June 30, 2010 (unaudited)

Description	Shares		Value
Lazard U.S. Equity Value Portfolio
Common Stocks | 99.1%
Aerospace & Defense | 2.8%
General Dynamics Corp.		2,510	$	146,986
Raytheon Co.		3,195		154,606
				301,592
Agriculture | 0.4%
The Mosaic Co.		1,085		42,293
Alcohol & Tobacco | 1.2%
Altria Group, Inc.		3,445		69,038
Reynolds American, Inc.		1,185		61,762
				130,800
Automotive | 0.6%
Ford Motor Co. (a)		6,920		69,754
Banking | 11.8%
Bank of America Corp.		24,190		347,610
Fifth Third Bancorp		4,105		50,450
JPMorgan Chase & Co.		10,236		374,740
KeyCorp.		8,895		68,403
PNC Financial Services Group, Inc.		1,450		81,925
Wells Fargo & Co.		13,965		357,504
				1,280,632
Cable Television | 1.5%
Comcast Corp., Class A		9,860		162,000
Chemicals | 1.8%
Air Products & Chemicals, Inc.		970		62,866
Dow Chemical Co.		5,725		135,797
				198,663
Computer Software | 3.7%
BMC Software, Inc. (a)		1,600		55,408
Microsoft Corp.		12,570		289,236
Oracle Corp.		2,915		62,556
				407,200
Construction & Engineering | 0.8%
Foster Wheeler AG (a)		4,270		89,926

Description	Shares		Value
Consumer Products | 5.1%
Energizer Holdings, Inc. (a)		1,560	$	78,437
Kimberly-Clark Corp.		1,134		68,754
Mattel, Inc.		3,650		77,234
Newell Rubbermaid, Inc.		7,870		115,217
The Procter & Gamble Co.		3,500		209,930
				549,572
Electric | 3.9%
American Electric Power Co., Inc.		3,315		107,074
DPL, Inc.		2,585		61,782
Entergy Corp.		1,415		101,342
PG&E Corp.		2,045		84,049
PPL Corp.		2,670		66,617
				420,864
Energy Exploration & Production | 4.4%
Anadarko Petroleum Corp.		775		27,970
Apache Corp.		1,285		108,184
Devon Energy Corp.		2,300		140,116
Noble Energy, Inc.		890		53,693
Occidental Petroleum Corp.		1,985		153,143
				483,106
Energy Integrated | 6.0%
Chevron Corp.		5,531		375,334
ConocoPhillips		4,265		209,369
Hess Corp.		1,245		62,673
				647,376
Energy Services | 0.8%
Halliburton Co.		2,280		55,974
Transocean, Ltd.		730		33,821
				89,795
Financial Services | 4.4%
Bank of New York Mellon Corp.		5,989		147,868
Citigroup, Inc. (a)		13,080		49,181
Franklin Resources, Inc.		870		74,985
MasterCard, Inc., Class A		370		73,826
The Goldman Sachs Group, Inc.		1,035		135,865
				481,725
Food & Beverages | 2.4%
PepsiCo, Inc.		1,785		108,796
Ralcorp Holdings, Inc. (a)		1,600		87,680
The Coca-Cola Co.		1,305		65,406
				261,882

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

28  Semi-Annual Report

Description	Shares		Value
Lazard U.S. Equity Value Portfolio (concluded)
Health Services | 1.8%
UnitedHealth Group, Inc.		2,410	$	68,444
WellPoint, Inc. (a)		2,615		127,952
				196,396
Insurance | 7.7%
ACE, Ltd.		2,590		133,333
Aon Corp.		1,765		65,517
Everest Re Group, Ltd.		1,320		93,350
Lincoln National Corp.		3,355		81,493
MetLife, Inc.		2,765		104,406
Prudential Financial, Inc.		1,690		90,685
RenaissanceRe Holdings, Ltd.		1,250		70,338
The Allstate Corp.		2,750		79,007
The Travelers Cos., Inc.		1,175		57,869
Willis Group Holdings PLC		2,010		60,401
				836,399
Leisure & Entertainment | 2.0%
Darden Restaurants, Inc.		1,345		52,253
The Walt Disney Co.		2,220		69,930
Viacom, Inc., Class B		2,935		92,071
				214,254
Manufacturing | 5.6%
Caterpillar, Inc.		900		54,063
Corning, Inc.		5,700		92,055
Flowserve Corp.		890		75,472
General Electric Co.		19,115		275,638
Honeywell International, Inc.		1,455		56,789
SPX Corp.		995		52,546
				606,563
Medical Products | 2.8%
Baxter International, Inc.		2,100		85,344
Covidien PLC		2,355		94,624
Medtronic, Inc.		3,325		120,598
				300,566
Metal & Glass Containers | 2.6%
Ball Corp.		2,335		123,358
Owens-Illinois, Inc. (a)		5,980		158,171
				281,529
Metals & Mining | 1.3%
Freeport-McMoRan Copper & Gold, Inc.		1,310		77,460
Nucor Corp.		1,690		64,693
				142,153

Description	Shares		Value
Pharmaceutical & Biotechnology | 10.3%
Amgen, Inc. (a)		2,860	$	150,436
Gilead Sciences, Inc. (a)		1,825		62,561
Johnson & Johnson		3,928		231,988
Merck & Co., Inc.		6,180		216,115
Pfizer, Inc.		31,944		455,521
				1,116,621
Retail | 4.6%
AutoZone, Inc. (a)		360		69,559
CVS Caremark Corp.		4,415		129,448
The TJX Cos., Inc.		1,445		60,618
Wal-Mart Stores, Inc.		4,950		237,946
				497,571
Semiconductors & Components | 1.3%
Intel Corp.		4,265		82,954
Texas Instruments, Inc.		2,705		62,973
				145,927
Technology Hardware | 3.5%
Hewlett-Packard Co.		5,645		244,316
International Business Machines Corp.		1,080		133,358
				377,674
Telecommunications | 4.0%
AT&T, Inc.		15,815		382,565
Verizon Communications, Inc.		2,054		57,553
				440,118
Total Common Stocks
(Identified cost $11,540,587)				10,772,951
Short-Term Investment | 2.3%
State Street Institutional Treasury
Money Market Fund
(Identified cost $255,471)		255,471		255,471
Total Investments | 101.4%
(Identified cost $11,796,058) (b)			$	11,028,422
Liabilities in Excess of Cash and
Other Assets | (1.4)%				(152,406	)
Net Assets | 100.0%			$	10,876,016

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

Semi-Annual Report  29

Description	Shares		Value
Lazard U.S. Strategic Equity Portfolio
Common Stocks | 99.3%
Aerospace & Defense | 2.8%
Raytheon Co.	39,000	$	1,887,210
Agriculture | 1.9%
Monsanto Co.	7,800		360,516
The Mosaic Co.	23,500		916,030
			1,276,546
Alcohol & Tobacco | 1.9%
Molson Coors Brewing Co., Class B	31,000		1,313,160
Automotive | 1.2%
Better Place	151,167		453,501
Ford Motor Co. (a)	32,200		324,576
			778,077
Banking | 5.5%
Bank of America Corp.	36,700		527,379
JPMorgan Chase & Co.	45,591		1,669,087
Wells Fargo & Co.	59,200		1,515,520
			3,711,986
Cable Television | 4.2%
Comcast Corp., Class A	172,400		2,832,532
Coal | 0.4%
Massey Energy Co.	9,200		251,620
Commercial Services | 1.0%
Corrections Corp. of America (a)	35,900		684,972
Computer Software | 6.7%
Microsoft Corp.	83,335		1,917,538
Oracle Corp.	75,700		1,624,522
Symantec Corp. (a)	69,400		963,272
			4,505,332
Consumer Products | 4.1%
Avon Products, Inc.	35,800		948,700
Mattel, Inc.	47,200		998,752
The Procter & Gamble Co.	14,100		845,718
			2,793,170

Description	Shares		Value
Energy Exploration & Production | 2.1%
Apache Corp.		8,000	$	673,520
EQT Corp.		20,200		730,028
				1,403,548
Energy Integrated | 6.5%
Chevron Corp.		14,500		983,970
ConocoPhillips		69,700		3,421,573
				4,405,543
Energy Services | 0.6%
Halliburton Co.		16,100		395,255
Financial Services | 4.9%
Ameriprise Financial, Inc.		33,900		1,224,807
NYSE Euronext		35,400		978,102
State Street Corp.		20,600		696,692
The Goldman Sachs Group, Inc.		3,200		420,064
				3,319,665
Food & Beverages | 1.2%
PepsiCo, Inc.		12,900		786,255
Insurance | 2.6%
PartnerRe, Ltd.		7,800		547,092
The Travelers Cos., Inc.		24,600		1,211,550
				1,758,642
Leisure & Entertainment | 2.6%
Apollo Group, Inc., Class A (a)		6,700		284,549
Darden Restaurants, Inc.		8,900		345,765
McDonald’s Corp.		17,100		1,126,377
				1,756,691
Manufacturing | 4.9%
Caterpillar, Inc.		14,200		852,994
Dover Corp.		16,400		685,356
Emerson Electric Co.		15,600		681,564
Honeywell International, Inc.		27,593		1,076,955
				3,296,869
Medical Products | 2.1%
Beckman Coulter, Inc.		8,700		524,523
Medtronic, Inc.		25,300		917,631
				1,442,154

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

30Semi-Annual Report

Description	Shares		Value
Lazard U.S. Strategic Equity Portfolio (concluded)
Metal & Glass Containers | 3.0%
Ball Corp.		37,815	$	1,997,766
Metals & Mining | 1.0%
Nucor Corp.		16,900		646,932
Pharmaceutical & Biotechnology | 11.8%
Amgen, Inc. (a)		19,300		1,015,180
Forest Laboratories, Inc. (a)		14,300		392,249
Gilead Sciences, Inc. (a)		19,800		678,744
Johnson & Johnson		24,260		1,432,796
Merck & Co., Inc.		25,200		881,244
Pfizer, Inc.		237,500		3,386,750
Talecris Biotherapeutics Holdings Corp.		7,400		156,140
				7,943,103
Refining | 1.0%
Valero Energy Corp.		38,600		694,028
Retail | 10.4%
AutoZone, Inc. (a)		9,500		1,835,590
J.C. Penney Co., Inc.		25,425		546,129
Wal-Mart Stores, Inc.		49,700		2,389,079
Walgreen Co.		83,100		2,218,770
				6,989,568
Semiconductors & Components | 1.9%
Intel Corp.		67,500		1,312,875

Description	Shares		Value
Technology | 3.7%
AOL, Inc. (a)		15,100	$	313,929
eBay, Inc. (a)		59,300		1,162,873
Google, Inc., Class A (a)		2,210		983,339
				2,460,141
Technology Hardware | 8.0%
Cisco Systems, Inc. (a)		59,555		1,269,117
EMC Corp. (a)		30,000		549,000
Hewlett-Packard Co.		27,400		1,185,872
International Business Machines Corp.		19,190		2,369,581
				5,373,570
Transportation | 1.3%
Norfolk Southern Corp.		16,700		885,935
Total Common Stocks
(Identified cost $67,015,398)				66,903,145
Short-Term Investment | 1.0%
State Street Institutional Treasury
Money Market Fund
(Identified cost $694,506)		694,506		694,506
Total Investments | 100.3%
(Identified cost $67,709,904) (b)			$	67,597,651
Liabilities in Excess of Cash and
Other Assets | (0.3)%				(197,623	)
Net Assets | 100.0%			$	67,400,028

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

Semi-Annual Report  31

Description	Shares		Value
Lazard U.S. Mid Cap Equity Portfolio
Common Stocks | 98.2%
Alcohol & Tobacco | 1.9%
Molson Coors Brewing Co., Class B		75,800	$	3,210,888
Automotive | 0.8%
Better Place		435,833		1,307,499
Banking | 5.1%
City National Corp.		84,600		4,334,058
Fifth Third Bancorp		201,000		2,470,290
KeyCorp.		264,300		2,032,467
				8,836,815
Cable Television | 0.8%
Cablevision Systems Corp.		58,700		1,409,387
Chemicals | 1.6%
Air Products & Chemicals, Inc.		20,900		1,354,529
Eastman Chemical Co.		27,300		1,456,728
				2,811,257
Coal | 1.2%
Arch Coal, Inc.		69,900		1,384,719
Massey Energy Co.		24,500		670,075
				2,054,794
Commercial Services | 3.2%
Corrections Corp. of America (a)		105,900		2,020,572
Fidelity National Information Services, Inc.		59,100		1,585,062
Republic Services, Inc.		66,900		1,988,937
				5,594,571
Computer Software | 5.0%
BMC Software, Inc. (a)		85,400		2,957,402
Intuit, Inc. (a)		72,600		2,524,302
Symantec Corp. (a)		232,800		3,231,264
				8,712,968
Construction & Engineering | 0.7%
Foster Wheeler AG (a)		54,600		1,149,876
Consumer Products | 7.6%
Avon Products, Inc.		58,900		1,560,850
Mattel, Inc.		270,800		5,730,128
Newell Rubbermaid, Inc.		257,500		3,769,800
Stanley Black & Decker, Inc.		43,100		2,177,412
				13,238,190

Description	Shares		Value
Electric | 3.3%
Allegheny Energy, Inc.		75,600	$	1,563,408
American Electric Power Co., Inc.		126,700		4,092,410
				5,655,818
Energy Exploration & Production | 3.7%
Energen Corp.		61,800		2,739,594
EQT Corp.		45,800		1,655,212
Noble Energy, Inc.		32,200		1,942,626
				6,337,432
Energy Services | 2.9%
The Williams Cos., Inc.		154,600		2,826,088
Tidewater, Inc.		58,500		2,265,120
				5,091,208
Financial Services | 4.0%
Ameriprise Financial, Inc.		138,000		4,985,940
NYSE Euronext		70,100		1,936,863
				6,922,803
Food & Beverages | 4.5%
Campbell Soup Co.		45,100		1,615,933
McCormick & Co., Inc.		84,300		3,200,028
Ralcorp Holdings, Inc. (a)		53,700		2,942,760
				7,758,721
Forest & Paper Products | 1.2%
Packaging Corp. of America		96,800		2,131,536
Insurance | 2.7%
PartnerRe, Ltd.		24,500		1,718,430
RenaissanceRe Holdings, Ltd.		51,500		2,897,905
				4,616,335
Leisure & Entertainment | 4.1%
Burger King Holdings, Inc.		157,500		2,652,300
Darden Restaurants, Inc.		32,600		1,266,510
Viacom, Inc., Class B		98,900		3,102,493
				7,021,303
Manufacturing | 6.9%
Dover Corp.		126,000		5,265,540
Parker Hannifin Corp.		58,900		3,266,594
Rockwell Collins, Inc.		65,400		3,474,702
				12,006,836
Medical Products | 7.5%
CareFusion Corp. (a)		115,550		2,622,985
Hospira, Inc. (a)		57,300		3,291,885
Life Technologies Corp. (a)		43,881		2,073,377
Teleflex, Inc.		44,300		2,404,604
Zimmer Holdings, Inc. (a)		47,800		2,583,590
				12,976,441

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

32Semi-Annual Report

Description	Shares		Value
Lazard U.S. Mid Cap Equity Portfolio (concluded)
Metal & Glass Containers | 3.6%
Ball Corp.		118,700	$	6,270,921
Metals & Mining | 3.1%
Cliffs Natural Resources, Inc.		19,700		929,052
Compass Minerals International, Inc.		35,600		2,501,968
Nucor Corp.		53,000		2,028,840
				5,459,860
Pharmaceutical & Biotechnology | 2.1%
Talecris Biotherapeutics Holdings Corp.		42,900		905,190
Warner Chilcott PLC, Class A (a)		122,000		2,787,700
				3,692,890
Real Estate | 5.1%
Digital Realty Trust, Inc. REIT		21,600		1,245,888
Public Storage REIT		22,200		1,951,602
Tanger Factory Outlet Centers, Inc. REIT		28,300		1,171,054
The Macerich Co. REIT		70,800		2,642,256
UDR, Inc. REIT		95,200		1,821,176
				8,831,976
Refining | 2.0%
Holly Corp.		87,400		2,323,092
Valero Energy Corp.		64,200		1,154,316
				3,477,408
Retail | 5.7%
AutoZone, Inc. (a)		16,800		3,246,096
Family Dollar Stores, Inc.		66,900		2,521,461
J.C. Penney Co., Inc.		96,200		2,066,376
The TJX Cos., Inc.		49,900		2,093,305
				9,927,238

Description	Shares		Value
Semiconductors & Components | 2.1%
Analog Devices, Inc.		129,100	$	3,596,726
Technology Hardware | 5.0%
Ingram Micro, Inc., Class A (a)		220,600		3,350,914
Lexmark International, Inc., Class A (a)		58,900		1,945,467
NetApp, Inc. (a)		57,500		2,145,325
Tellabs, Inc.		199,000		1,271,610
				8,713,316
Telecommunications | 0.8%
NeuStar, Inc., Class A (a)		68,200		1,406,284
Total Common Stocks
(Identified cost $164,665,205)				170,221,297
Short-Term Investment | 1.3%
State Street Institutional Treasury
Money Market Fund
(Identified cost $2,236,062)		2,236,062		2,236,062
Total Investments | 99.5%
(Identified cost $166,901,267) (b)			$	172,457,359
Cash and Other Assets in Excess
of Liabilities | 0.5%				868,779
Net Assets | 100.0%			$	173,326,138

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

Semi-Annual Report  33

Description	Shares		Value
Lazard U.S. Small-Mid Cap Equity Portfolio
Common Stocks | 96.4%
Automotive | 2.2%
Better Place		150,967	$	452,901
Modine Manufacturing Co. (a)		73,900		567,552
Tenneco, Inc. (a)		34,700		730,782
				1,751,235
Banking | 7.7%
City National Corp.		19,300		988,739
Home Bancshares, Inc.		52,480		1,197,069
KeyCorp.		149,800		1,151,962
PacWest Bancorp		69,901		1,279,887
Wintrust Financial Corp.		41,500		1,383,610
				6,001,267
Chemicals | 2.3%
GrafTech International, Ltd. (a)		44,700		653,514
Innospec, Inc. (a)		53,384		500,742
Rockwood Holdings, Inc. (a)		29,200		662,548
				1,816,804
Commercial Services | 3.5%
Administaff, Inc.		22,650		547,224
Navigant Consulting, Inc. (a)		87,600		909,288
SAIC, Inc. (a)		34,300		574,182
Team, Inc. (a)		54,100		706,005
				2,736,699
Computer Software | 6.9%
Akamai Technologies, Inc. (a)		15,400		645,707
BMC Software, Inc. (a)		26,900		931,547
Intuit, Inc. (a)		24,250		843,172
Nuance Communications, Inc. (a)		50,300		751,985
Quest Software, Inc. (a)		57,500		1,037,300
Red Hat, Inc. (a)		42,550		1,231,397
				5,441,108
Construction & Engineering | 0.9%
Great Lakes Dredge & Dock Co.		110,700		664,200
Consumer Products | 7.1%
Central Garden & Pet Co., Class A (a)		150,900		1,353,573
Mattel, Inc.		55,100		1,165,916
Matthews International Corp., Class A		29,050		850,584
Newell Rubbermaid, Inc.		53,100		777,384
Tempur-Pedic International, Inc. (a)		17,300		531,975
The Middleby Corp. (a)		15,850		843,061
				5,522,493

Description	Shares		Value
Electric | 1.6%
Northeast Utilities		50,550	$	1,288,014
Energy Integrated | 4.0%
Cimarex Energy Co.		29,600		2,118,768
James River Coal Co. (a)		64,850		1,032,412
				3,151,180
Energy Services | 2.2%
Helmerich & Payne, Inc.		26,000		949,520
Oceaneering International, Inc. (a)		17,300		776,770
				1,726,290
Financial Services | 2.0%
FTI Consulting, Inc. (a)		18,900		823,851
Waddell & Reed Financial, Inc., Class A		34,050		745,014
				1,568,865
Food & Beverages | 0.8%
Lance, Inc.		36,800		606,832
Forest & Paper Products | 2.3%
Rock-Tenn Co., Class A		16,000		794,720
Schweitzer-Mauduit International, Inc.		19,100		963,595
				1,758,315
Gas Utilities | 3.2%
AGL Resources, Inc.		34,950		1,251,909
New Jersey Resources Corp.		35,100		1,235,520
				2,487,429
Health Services | 0.9%
Tenet Healthcare Corp. (a)		170,000		737,800
Housing | 0.9%
Trex Co., Inc. (a)		35,100		705,159
Insurance | 3.5%
Arch Capital Group, Ltd. (a)		19,100		1,422,950
RenaissanceRe Holdings, Ltd.		23,700		1,333,599
				2,756,549
Leisure & Entertainment | 2.9%
Darden Restaurants, Inc.		16,200		629,370
Expedia, Inc.		45,600		856,368
Texas Roadhouse, Inc. (a)		60,600		764,772
				2,250,510
Manufacturing | 7.7%
Altra Holdings, Inc. (a)		54,800		713,496
BE Aerospace, Inc. (a)		40,000		1,017,200
Bucyrus International, Inc.		12,150		576,518
DXP Enterprises, Inc. (a)		41,600		651,040

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

34Semi-Annual Report

Description	Shares		Value
Lazard U.S. Small-Mid Cap Equity Portfolio (concluded)
FLIR Systems, Inc. (a)		36,100	$	1,050,149
Generac Holdings, Inc.		54,345		761,373
Gibraltar Industries, Inc. (a)		65,150		658,015
Regal-Beloit Corp.		11,150		621,947
				6,049,738
Medical Products | 6.9%
Beckman Coulter, Inc.		13,400		807,886
CareFusion Corp. (a)		51,100		1,159,970
Haemonetics Corp. (a)		16,000		856,320
Hospira, Inc. (a)		27,200		1,562,640
Life Technologies Corp. (a)		21,010		992,722
				5,379,538
Metal & Glass Containers | 2.1%
Ball Corp.		17,400		919,242
Owens-Illinois, Inc. (a)		28,300		748,535
				1,667,777
Metals & Mining | 1.0%
Schnitzer Steel Industries, Inc., Class A		20,700		811,440
Pharmaceutical & Biotechnology | 1.7%
Warner Chilcott PLC, Class A (a)		59,100		1,350,435
Real Estate | 6.9%
Digital Realty Trust, Inc. REIT		13,900		801,752
Extra Space Storage, Inc. REIT		58,900		818,710
Kilroy Realty Corp. REIT		41,350		1,229,335
The Macerich Co. REIT		32,177		1,200,846
UDR, Inc. REIT		70,300		1,344,839
				5,395,482
Retail | 7.3%
American Eagle Outfitters, Inc.		71,650		841,888
Family Dollar Stores, Inc.		26,700		1,006,323
Iconix Brand Group, Inc. (a)		66,600		957,042
Kirkland’s, Inc. (a)		39,350		664,031
Liz Claiborne, Inc. (a)		103,200		435,504
The Gymboree Corp. (a)		23,850		1,018,633
Williams-Sonoma, Inc.		30,800		764,456
				5,687,877

Description	Shares		Value
Semiconductors & Components | 3.2%
CPI International, Inc. (a)		40,586	$	632,736
Micron Technology, Inc. (a)		53,800		456,762
ON Semiconductor Corp. (a)		142,900		911,702
Supertex, Inc. (a)		21,900		540,054
				2,541,254
Technology | 1.6%
SS&C Technologies Holdings, Inc.		80,200		1,285,606
Technology Hardware | 0.8%
Polycom, Inc. (a)		19,750		588,353
Transportation | 2.3%
Echo Global Logistics, Inc.		78,450		957,875
UTI Worldwide, Inc.		69,350		858,553
				1,816,428
Total Common Stocks
(Identified cost $70,676,873)				75,544,677
Description	Principal Amount (000)		Value
Repurchase Agreement | 4.9%
State Street Bank and Trust Co., 0.00%, 07/01/10 (Dated 06/30/10, collateralized by $3,755,000 United States Treasury Note, 2.50%, 04/30/15, with a value of $3,906,702) Proceeds of $3,827,000 (Identified cost $3,827,000)	$	3,827	$	3,827,000
Total Investments | 101.3%
(Identified cost $74,503,873) (b)			$	79,371,677
Liabilities in Excess of Cash and Other Assets | (1.3)%				(1,012,692	)
Net Assets | 100.0%			$	78,358,985

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

Semi-Annual Report  35

Description	Shares		Value
Lazard International Equity Portfolio
Common Stocks | 97.4%
Australia | 0.9%
QBE Insurance Group, Ltd.		74,400	$	1,132,242
Belgium | 2.2%
Anheuser-Busch InBev NV		59,400		2,853,219
Brazil | 2.8%
Banco do Brasil SA		117,400		1,603,274
Cielo SA		240,000		2,021,053
Total Brazil				3,624,327
Canada | 2.4%
Potash Corp. of Saskatchewan, Inc.		15,200		1,309,181
Rogers Communications, Inc.		54,900		1,793,642
Total Canada				3,102,823
China | 1.2%
Industrial and Commercial Bank of China, Ltd., Class H		2,044,600		1,487,200
Denmark | 1.1%
Novo Nordisk A/S, Class B		17,600		1,419,716
France | 7.4%
BNP Paribas SA		39,838		2,127,126
Cap Gemini SA		21,600		943,707
Sanofi-Aventis		59,347		3,578,795
Total SA		43,196		1,922,416
Valeo SA (a)		32,700		880,911
Total France				9,452,955
Germany | 4.0%
Bayerische Motoren Werke AG		24,500		1,185,021
SAP AG		30,100		1,336,975
Siemens AG		28,588		2,558,252
Total Germany				5,080,248
Hong Kong | 2.8%
Esprit Holdings, Ltd.		438,897		2,372,467
Kerry Properties, Ltd.		295,500		1,266,472
Total Hong Kong				3,638,939

Description	Shares		Value
India | 0.8%
Idea Cellular, Ltd. (a)		758,100	$	964,939
Ireland | 1.4%
CRH PLC		86,069		1,795,423
Italy | 1.7%
Atlantia SpA		83,527		1,480,817
Prysmian SpA		45,365		651,695
Total Italy				2,132,512
Japan | 21.7%
Benesse Holdings, Inc.		25,000		1,138,553
Canon, Inc.		66,600		2,483,053
Daito Trust Construction Co., Ltd.		47,900		2,707,852
eAccess, Ltd.		780		531,739
Honda Motor Co., Ltd.		71,300		2,070,660
Hoya Corp.		88,200		1,872,831
KDDI Corp.		432		2,052,043
Keyence Corp.		6,800		1,564,263
Kubota Corp.		155,000		1,183,642
Mitsubishi Corp.		91,300		1,902,493
Mitsubishi Estate Co., Ltd.		109,000		1,513,367
Nintendo Co., Ltd.		3,300		961,278
Nomura Holdings, Inc.		221,700		1,213,682
Sumitomo Mitsui Financial Group, Inc.		66,800		1,885,810
Yahoo! Japan Corp.		7,560		3,004,611
Yamada Denki Co., Ltd.		25,750		1,680,973
Total Japan				27,766,850
Mexico | 0.7%
Grupo Televisa SA Sponsored ADR		53,800		936,658
Netherlands | 1.8%
Heineken NV		27,000		1,144,512
TNT NV		47,265		1,191,279
Total Netherlands				2,335,791
Norway | 0.8%
Aker Solutions ASA		84,840		971,787
Russia | 0.8%
OAO LUKOIL Sponsored ADR		19,950		1,026,128

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

36Semi-Annual Report

Description	Shares		Value
Lazard International Equity Portfolio (concluded)
Singapore | 1.0%
Singapore Telecommunications, Ltd.		611,600	$	1,321,087
South Korea | 1.7%
Hyundai Mobis		7,300		1,222,579
Samsung Electronics Co., Ltd. GDR (c)		3,050		966,088
Total South Korea				2,188,667
Spain | 2.6%
Amadeus IT Holding SA		68,400		1,075,772
Banco Santander SA		215,278		2,262,137
Total Spain				3,337,909
Switzerland | 9.3%
Credit Suisse Group AG		56,700		2,130,999
Julius Baer Group Ltd.		25,400		723,159
Nestle SA		45,660		2,203,094
Novartis AG		66,830		3,242,354
Roche Holding AG		11,700		1,606,686
Zurich Financial Services AG		8,870		1,947,062
Total Switzerland				11,853,354
Turkey | 1.1%
Turkiye Garanti Bankasi AS ADR		341,600		1,462,048
United Kingdom | 27.2%
AMEC PLC		52,400		638,784
BAE Systems PLC		382,500		1,776,978
Barclays PLC		416,100		1,649,638
BG Group PLC		146,700		2,171,615
BHP Billiton PLC		77,900		2,015,807
British Airways PLC (a)		226,500		657,313
British American Tobacco PLC		42,009		1,330,207
GlaxoSmithKline PLC		136,600		2,314,985
HSBC Holdings PLC		176,750		1,612,496

Description	Shares		Value
Informa PLC		330,920	$	1,741,578
International Power PLC		285,900		1,266,655
Lloyds Banking Group PLC (a)		2,206,406		1,750,619
Prudential PLC		218,900		1,640,679
Royal Dutch Shell PLC, A Shares		64,900		1,638,950
Standard Chartered PLC		88,000		2,136,281
Tesco PLC		298,400		1,680,135
Tullow Oil PLC		80,400		1,197,615
Unilever PLC		102,400		2,729,086
Vodafone Group PLC		634,888		1,315,628
WPP PLC		169,000		1,589,239
Xstrata PLC		157,000		2,056,912
Total United Kingdom				34,911,200
Total Common Stocks
(Identified cost $131,729,683)				124,796,022
Description	Principal Amount (000)		Value
Repurchase Agreement | 1.9%
State Street Bank and Trust Co., 0.00%, 07/01/10 (Dated 06/30/10, collateralized by $2,395,000 United States Treasury Note, 2.50%, 04/30/15, with a value of $2,491,758) Proceeds of $2,438,000 (Identified cost $2,438,000)	$	2,438	$	2,438,000
Total Investments | 99.3%
(Identified cost $134,167,683) (b)			$	127,234,022
Cash and Other Assets in Excess of Liabilities | 0.7%				877,212
Net Assets | 100.0%			$	128,111,234

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

Semi-Annual Report  37

Description	Shares		Value
Lazard International Equity Select Portfolio
Common Stocks | 97.6%
Australia | 2.5%
BHP Billiton, Ltd.		4,347	$	135,191
Belgium | 2.6%
Anheuser-Busch InBev NV		2,904		139,491
Brazil | 4.7%
Banco do Brasil SA		5,600		76,477
Cielo SA		15,490		130,442
Vale SA Sponsored ADR		2,095		51,013
Total Brazil				257,932
Canada | 1.6%
Rogers Communications, Inc.		2,580		84,291
China | 2.0%
China Construction Bank Corp.		105,630		85,006
NetEase.com, Inc. Sponsored ADR (a)		785		24,892
Total China				109,898
Denmark | 1.7%
Novo Nordisk A/S, Class B		1,165		93,975
Finland | 1.1%
Sampo Oyj, A Shares		2,785		58,271
France | 9.1%
BNP Paribas SA		2,003		106,949
LVMH Moet Hennessy Louis Vuitton SA		946		103,046
Sanofi-Aventis		2,765		166,737
Total SA		2,620		116,602
Total France				493,334
Germany | 2.2%
SAP AG		2,650		117,707
Hong Kong | 3.0%
Esprit Holdings, Ltd.		19,213		103,856
Sun Hung Kai Properties, Ltd.		4,335		58,995
Total Hong Kong				162,851

Description	Shares		Value
Indonesia | 1.7%
PT Telekomunikasi Indonesia Tbk
Sponsored ADR		2,765	$	94,646
Ireland | 1.3%
CRH PLC		3,595		73,108
Israel | 0.8%
Israel Chemicals, Ltd.		4,419		46,083
Italy | 1.2%
Eni SpA		3,580		65,719
Japan | 13.6%
Canon, Inc.		3,375		125,830
Daito Trust Construction Co., Ltd.		400		22,613
Fanuc, Ltd.		920		103,215
Honda Motor Co., Ltd.		1,600		46,466
Hoya Corp.		4,580		97,251
Keyence Corp.		275		63,261
Mitsubishi Estate Co., Ltd.		5,070		70,392
Sumitomo Mitsui Financial Group, Inc.		3,958		111,737
Yahoo! Japan Corp.		245		97,372
Total Japan				738,137
Mexico | 1.0%
Grupo Televisa SA Sponsored ADR		2,995		52,143
Russia | 2.7%
Mobile TeleSystems Sponsored ADR		1,645		31,518
OAO LUKOIL Sponsored ADR		1,120		57,607
Sberbank		23,200		55,645
Total Russia				144,770
Singapore | 1.6%
Singapore Telecommunications, Ltd.		41,800		89,368
Spain | 1.3%
Banco Santander SA		6,810		71,559
Sweden | 1.2%
Assa Abloy AB, Class B		3,265		65,121

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

38  Semi-Annual Report

Description	Shares		Value
Lazard International Equity Select Portfolio (concluded)
Switzerland | 11.8%
Credit Suisse Group AG		3,030	$	113,879
Nestle SA		2,050		98,912
Novartis AG		3,340		162,045
Roche Holding AG		753		103,405
UBS AG (a)		5,355		70,983
Zurich Financial Services AG		428		93,951
Total Switzerland				643,175
Taiwan | 2.2%
Taiwan Semiconductor Manufacturing Co.,
Ltd. Sponsored ADR		12,202		119,092
Turkey | 2.3%
Turkcell Iletisim Hizmetleri AS ADR		3,305		42,899
Turkiye Garanti Bankasi AS		19,180		79,464
Total Turkey				122,363
United Kingdom | 24.4%
BAE Systems PLC		10,604		49,263
Barclays PLC		32,164		127,515
BG Group PLC		4,365		64,615
British American Tobacco PLC		3,950		125,076
GlaxoSmithKline PLC		7,870		133,374
Lloyds Banking Group PLC (a)		142,775		113,281

Description	Shares		Value
Prudential PLC		10,791	$	80,880
Royal Dutch Shell PLC, A Shares		5,050		128,139
SABMiller PLC		2,115		58,723
Standard Chartered PLC		3,958		96,084
Tesco PLC		11,675		65,736
Tullow Oil PLC		4,555		67,850
Unilever PLC		3,590		95,678
William Morrison Supermarkets PLC		13,430		52,946
Xstrata PLC		5,180		67,865
Total United Kingdom				1,327,025
Total Common Stocks
(Identified cost $5,527,798)				5,305,250
Short-Term Investment | 2.0%
State Street Institutional Treasury
Money Market Fund
(Identified cost $105,763)		105,763		105,763
Total Investments | 99.6%
(Identified cost $5,633,561) (b)			$	5,411,013
Cash and Other Assets in Excess
of Liabilities | 0.4%				22,286
Net Assets | 100.0%			$	5,433,299

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

Semi-Annual Report  39

Description	Shares		Value
Lazard International Strategic Equity Portfolio
Common Stocks | 93.8%
Belgium | 4.3%
Anheuser-Busch InBev NV		195,430	$	9,387,281
Umicore NV		149,880		4,336,878
Total Belgium				13,724,159
Brazil | 1.3%
Cyrela Brazil Realty SA		389,400		4,208,972
China | 3.4%
Industrial and Commercial Bank of
China, Ltd., Class H		7,977,800		5,802,887
Yingde Gases Group Co.		4,977,000		4,909,572
Total China				10,712,459
Czech Republic | 1.2%
CEZ AS		90,500		3,716,496
Denmark | 2.0%
Novo Nordisk A/S, Class B		80,800		6,517,787
Egypt | 2.6%
Commercial International Bank		320,800		3,776,063
Eastern Tobacco		203,320		4,416,927
Total Egypt				8,192,990
Finland | 2.2%
Sampo Oyj, A Shares		339,910		7,111,982
France | 9.4%
BNP Paribas SA		116,903		6,241,966
Cap Gemini SA		69,538		3,038,125
Sanofi-Aventis		180,900		10,908,791
Societe Generale		132,766		5,400,751
Valeo SA (a)		164,460		4,430,416
Total France				30,020,049
Germany | 1.5%
Bayerische Motoren Werke AG		100,980		4,884,223

Description	Shares		Value
Hong Kong | 2.9%
Esprit Holdings, Ltd.		896,103	$	4,843,903
Kerry Properties, Ltd.		998,000		4,277,291
Total Hong Kong				9,121,194
India | 1.5%
Idea Cellular, Ltd. (a)		3,849,570		4,899,883
Ireland | 2.3%
C&C Group PLC		773,000		3,026,937
CRH PLC		217,000		4,412,916
Total Ireland				7,439,853
Italy | 1.9%
Prysmian SpA		424,681		6,100,794
Japan | 11.2%
Benesse Holdings, Inc.		83,500		3,802,767
Canon, Inc.		195,000		7,270,201
Don Quijote Co., Ltd.		278,600		7,464,654
eAccess, Ltd.		4,945		3,371,087
Kubota Corp.		377,800		2,885,032
Sumitomo Mitsui Financial Group, Inc.		134,600		3,799,851
Yahoo! Japan Corp.		18,100		7,193,579
Total Japan				35,787,171
Netherlands | 1.7%
ASM International NV (a)		273,673		5,291,245
Norway | 0.8%
Aker Solutions ASA		230,470		2,639,884
Russia | 1.7%
Sberbank		2,288,914		5,489,894
South Africa | 3.2%
MTN Group, Ltd.		280,640		3,679,049
Naspers, Ltd., N Shares		195,580		6,573,424
Total South Africa				10,252,473
South Korea | 1.0%
NHN Corp. (a)		21,100		3,140,144

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

40  Semi-Annual Report

Description	Shares		Value
Lazard International Strategic Equity Portfolio (concluded)
Spain | 1.2%
Amadeus IT Holding SA		232,000	$	3,648,818
Switzerland | 5.6%
Credit Suisse Group AG		80,140		3,011,963
Julius Baer Group Ltd.		155,102		4,415,881
Novartis AG		118,500		5,749,198
UBS AG (a)		345,420		4,578,736
Total Switzerland				17,755,778
Turkey | 1.7%
Turkiye Garanti Bankasi AS		1,334,500		5,528,895
United Kingdom | 29.2%
AMEC PLC		569,753		6,945,593
Barclays PLC		1,121,250		4,445,221
BBA Aviation PLC		1,521,698		4,109,812
BG Group PLC		326,140		4,827,883
British Airways PLC (a)		1,493,573		4,334,416
British American Tobacco PLC		284,418		9,006,042
Cairn Energy PLC (a)		621,750		3,803,994
GlaxoSmithKline PLC		339,900		5,760,347
IG Group Holdings PLC		927,550		5,787,782
Informa PLC		1,427,747		7,513,999
Lloyds Banking Group PLC (a)		11,125,182		8,827,005
Man Group PLC		1,127,710		3,730,650

Description	Shares		Value
Michael Page International PLC		797,550	$	4,402,293
Prudential PLC		553,500		4,148,543
TalkTalk Telecom Group PLC (a)		1,814,600		3,353,648
Unilever PLC		329,764		8,788,617
Xstrata PLC		256,450		3,359,842
Total United Kingdom				93,145,687
Total Common Stocks
(Identified cost $313,115,820)				299,330,830
Preferred Stock | 2.0%
Brazil | 2.0%
Banco Bradesco SA
(Identified cost $6,416,357)		401,350		6,250,387
Short-Term Investment | 3.0%
State Street Institutional Treasury
Money Market Fund
(Identified cost $9,564,667)		9,564,667		9,564,667
Total Investments | 98.8%
(Identified cost $329,096,844) (b)			$	315,145,884
Cash and Other Assets in Excess of Liabilities | 1.2%				3,837,184
Net Assets | 100.0%			$	318,983,068

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

Semi-Annual Report  41

Description	Shares		Value
Lazard International Small Cap Equity Portfolio
Common Stocks | 96.0%
Australia | 4.1%
Cabcharge Australia, Ltd.		150,267	$	646,382
Fairfax Media, Ltd.		405,759		445,339
Intoll Group		504,389		438,622
James Hardie Industries SE (a)		158,907		827,619
Macquarie Atlas Roads Group (a)		104,898		83,436
Total Australia				2,441,398
Austria | 1.2%
Andritz AG		12,411		694,475
Belgium | 3.7%
Arseus NV		71,830		812,939
EVS Broadcast Equipment SA		12,828		515,662
Telenet Group Holding NV		32,507		853,692
Total Belgium				2,182,293
Finland | 3.3%
Konecranes Oyj		21,490		561,263
Sampo Oyj, A Shares		33,322		697,201
Vacon Oyj		15,974		665,619
Total Finland				1,924,083
France | 3.3%
Neopost SA		8,114		587,181
Valeo SA (a)		20,967		564,833
Virbac SA		7,659		813,611
Total France				1,965,625
Germany | 7.5%
CompuGroup Medical AG		110,991		1,119,720
CTS Eventim AG		24,822		1,193,066
Fielmann AG		10,783		815,513
Pfeiffer Vacuum Technology AG		8,540		628,947
Wincor Nixdorf AG		11,472		641,877
Total Germany				4,399,123
Hong Kong | 1.7%
AAC Acoustic Technologies Holdings, Inc.		396,000		563,728
Esprit Holdings, Ltd.		85,075		459,875
Total Hong Kong				1,023,603

Description	Shares		Value
Ireland | 3.9%
C&C Group PLC		162,028	$	634,474
DCC PLC		36,295		820,055
FBD Holdings PLC		66,676		541,237
Irish Life & Permanent Group Holdings PLC (a)		151,895		278,389
Total Ireland				2,274,155
Italy | 0.9%
MARR SpA		72,717		543,606
Japan | 29.8%
Ain Pharmaciez, Inc.		26,400		1,068,727
Asahi Holdings, Inc.		52,200		1,140,079
Daiseki Co., Ltd.		39,800		823,778
Daito Trust Construction Co., Ltd.		21,800		1,232,384
Don Quijote Co., Ltd.		40,400		1,082,455
eAccess, Ltd.		854		582,186
JAFCO Co., Ltd.		24,200		531,355
JSR Corp.		41,000		687,452
Konami Corp.		43,200		680,888
Kurita Water Industries, Ltd.		13,500		368,739
Misumi Group, Inc.		40,900		753,850
Nomura Research Institute, Ltd.		26,700		564,467
NPC, Inc.		35,000		554,798
Ohara, Inc.		47,200		747,708
Rinnai Corp.		11,500		589,557
Roland DG Corp.		55,300		755,989
Sankyo Co., Ltd.		9,900		447,139
Santen Pharmaceutical Co., Ltd.		21,390		769,718
Shinko Plantech Co., Ltd.		79,600		706,560
Suruga Bank, Ltd.		110,300		999,265
Sysmex Corp.		18,400		1,044,892
Union Tool Co.		21,400		544,151
USS Co., Ltd.		12,250		874,387
Total Japan				17,550,524
Netherlands | 5.1%
ASM International NV (a)		37,592		726,811
Fugro NV		19,938		911,636
Koninklijke Vopak NV		16,958		622,339
Unit 4 NV		36,399		753,522
Total Netherlands				3,014,308

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

42  Semi-Annual Report

Description	Shares		Value
Lazard International Small Cap Equity Portfolio (concluded)
Norway | 4.3%
Kongsberg Gruppen ASA		72,320	$	1,208,141
Prosafe Production Public, Ltd. (a)		298,783		602,684
TGS Nopec Geophysical Co. ASA		61,440		702,519
Total Norway				2,513,344
Singapore | 1.3%
Ezra Holdings, Ltd.		592,500		761,584
Spain | 1.8%
Indra Sistemas SA		32,416		519,635
Tecnicas Reunidas SA		12,277		554,087
Total Spain				1,073,722
Sweden | 7.8%
Byggmax Group AB		51,214		298,850
Duni AB		79,640		530,256
Elekta AB, B Shares		43,000		1,085,261
Getinge AB, B Shares		42,610		824,560
Indutrade AB		31,620		680,702
Loomis AB, B Shares		64,724		617,298
ORC Software AB		34,802		575,923
Total Sweden				4,612,850
Switzerland | 4.2%
Burckhardt Compression Holding AG		3,343		589,129
Dufry Group (a)		9,866		735,930
Swissquote Group Holding SA		13,961		553,268
Tecan AG		9,312		591,197
Total Switzerland				2,469,524

Description	Shares		Value
United Kingdom | 12.1%
Abcam PLC		43,708	$	797,906
Chemring Group PLC		22,981		1,008,706
CPP Group PLC		164,576		607,648
Dignity PLC		88,365		851,675
Hampson Industries PLC		544,533		424,880
Healthcare Locums PLC		262,147		686,716
IG Group Holdings PLC		201,869		1,259,634
Intertek Group PLC		48,378		1,034,685
Jupiter Fund Management PLC (a)		158,350		428,229
Total United Kingdom				7,100,079
Total Common Stocks
(Identified cost $56,727,620)				56,544,296
Preferred Stock | 1.4%
Germany | 1.4%
Fuchs Petrolub AG
(Identified cost $656,548)		9,092		806,987
Short-Term Investment | 1.6%
State Street Institutional Treasury Money Market Fund (Identified cost $931,802)		931,802		931,802
Total Investments | 99.0%
(Identified cost $58,315,970) (b)			$	58,283,085
Cash and Other Assets in Excess of Liabilities | 1.0%				582,486
Net Assets | 100.0%			$	58,865,571

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

Semi-Annual Report  43

Description	Shares		Value
Lazard Global Listed Infrastructure Portfolio
Common Stocks | 99.1%
Australia | 23.6%
APA Group		290,855	$	875,489
ConnectEast Group		7,548,623		2,405,251
DUET Group		2,748,000		3,712,598
Envestra, Ltd.		1,290,927		529,605
Intoll Group		4,762,830		4,141,806
Macquarie Atlas Roads Group (a)		1,467,226		1,167,033
MAp Group		315,794		708,939
SP Ausnet		2,386,784		1,528,151
Spark Infrastructure Group (c)		2,654,800		2,545,526
Transurban Group		841,557		2,985,233
Total Australia				20,599,631
Austria | 1.2%
Flughafen Wien AG		19,769		1,032,528
France | 1.4%
Aeroports de Paris		12,000		764,747
Societe des Autoroutes Paris-Rhin-Rhone		6,600		430,734
Total France				1,195,481
Germany | 4.4%
Fraport AG		91,135		3,873,402
Italy | 24.0%
Atlantia SpA		222,149		3,938,391
Autostrada Torino-Milano SpA		378,562		4,612,057
Digital Multimedia Technologies SpA (a)		63,137		1,044,552
Hera SpA		1,942,178		3,174,257
Snam Rete Gas SpA		214,347		852,129
Societa Iniziative Autostradali e Servizi SpA		627,733		5,270,742
Terna SpA		571,675		2,058,835
Total Italy				20,950,963
Japan | 9.5%
East Japan Railway Co.		7,000		466,622
Osaka Gas Co., Ltd.		1,066,000		3,849,577
Tokyo Gas Co., Ltd.		654,700		2,993,207
West Japan Railway Co.		280		1,023,510
Total Japan				8,332,916

Description	Shares		Value
Mexico | 2.3%
Grupo Aeroportuario del Centro Norte SAB de CV		1,081,700	$	1,693,678
Grupo Aeroportuario del Pacifico SAB de CV, B Shares		126,630		369,422
Total Mexico				2,063,100
South Korea | 2.9%
Macquarie Korea Infrastructure Fund		676,600		2,520,643
Spain | 6.9%
Abertis Infraestructuras SA		60,500		871,738
Enagas SA		105,943		1,592,171
Red Electrica Corporacion SA		100,867		3,605,638
Total Spain				6,069,547
Switzerland | 2.3%
Flughafen Zuerich AG		6,770		2,005,775
United Kingdom | 4.9%
National Grid PLC		100,000		736,648
Northumbrian Water Group PLC		238,713		1,081,355
Pennon Group PLC		123,353		1,010,844
Severn Trent PLC		56,084		1,023,288
United Utilities Group PLC		60,000		467,552
Total United Kingdom				4,319,687
United States | 15.7%
American Electric Power Co., Inc.		29,200		943,160
American States Water Co.		25,700		851,698
California Water Service Group		50,600		1,806,420
Consolidated Edison, Inc.		21,270		916,737
MGE Energy, Inc.		26,200		944,248
Norfolk Southern Corp.		16,700		885,935
Northeast Utilities		36,100		919,828
PG&E Corp.		43,400		1,783,740
Southern Co.		28,100		935,168
Westar Energy, Inc.		41,650		900,056
Wisconsin Energy Corp.		37,200		1,887,528
Xcel Energy, Inc.		44,500		917,145
Total United States				13,691,663
Total Common Stocks
(Identified cost $100,049,553)				86,655,336

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

44  Semi-Annual Report

Description	Shares		Value
Lazard Global Listed Infrastructure Portfolio (concluded)
Short-Term Investment | 2.3%
State Street Institutional Treasury Money Market Fund (Identified cost $2,008,506)		2,008,506	$	2,008,506

Description	Value
Total Investments | 101.4%
(Identified cost $102,058,059) (b)	$	88,663,842
Liabilities in Excess of Cash and Other Assets | (1.4)%		(1,236,614	)
Net Assets | 100.0%	$	87,427,228

Forward Currency Sale Contracts open at June 30, 2010:

Forward Currency Sale Contracts	Expiration Date		Foreign Currency		U.S. $ Cost on Origination Date			U.S. $ Current Value		Unrealized Appreciation			Unrealized Depreciation
AUD		09/21/10		25,676,977		$	21,137,545	$	21,568,656		$	—	$	431,111
CHF		09/21/10		2,404,682			2,106,893		2,235,003			—		128,110
EUR		09/21/10		25,961,388			31,347,597		31,921,958			—		574,361
EUR		09/21/10		2,179,687			2,667,676		2,680,130			—		12,454
GBP		09/21/10		1,778,615			2,592,829		2,658,384			—		65,555
GBP		09/21/10		1,085,871			1,615,222		1,622,983			—		7,761
JPY		09/21/10		634,697,565			6,942,921		7,181,012			—		238,091
JPY		09/21/10		112,856,556			1,253,015		1,276,867			—		23,852
KRW		09/29/10		3,180,291,978			2,607,866		2,595,397			12,469		—
MXN		09/21/10		27,451,194			2,132,247		2,121,947			10,300		—
Total Forward Currency Sale Contracts						$	74,403,811	$	75,862,337			22,769		1,481,295
Gross unrealized appreciation/depreciation on Forward Currency Sale Contracts											$	22,769	$	1,481,295

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

Semi-Annual Report 45

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio
Common Stocks | 91.9%
Brazil | 17.8%
Banco do Brasil SA		30,171,600	$	412,038,748
Cielo SA		47,049,700		396,208,000
Companhia de Concessoes Rodoviarias		4,909,100		101,663,245
Companhia Energetica de Minas
Gerais SA Sponsored ADR		9,499,328		139,355,142
Companhia Siderurgica Nacional
SA Sponsored ADR		11,072,688		162,657,787
Natura Cosmeticos SA		7,856,400		174,103,047
Redecard SA		26,267,630		371,093,942
Souza Cruz SA		6,404,165		241,264,942
Vale SA Sponsored ADR		16,466,100		400,949,535
Total Brazil				2,399,334,388
Canada | 1.0%
First Quantum Minerals, Ltd.		2,776,800		139,681,217
China | 2.4%
China Construction Bank Corp.,
Class H		177,962,000		143,214,879
NetEase.com, Inc. Sponsored ADR (a)		5,502,700		174,490,617
Total China				317,705,496
Egypt | 3.6%
Commercial International Bank		12,226,830		143,919,189
Eastern Tobacco		3,217,948		69,906,757
Egyptian Company for Mobile Services		2,207,975		64,313,543
Orascom Construction Industries		5,093,833		203,566,381
Total Egypt				481,705,870
France | 0.5%
CFAO SA		2,625,014		70,707,977
Hong Kong | 0.4%
Shougang Concord International
Enterprises Co., Ltd. (a)		383,626,900		53,828,467
Hungary | 0.7%
OTP Bank Nyrt (a)		4,833,348		97,286,486

Description	Shares		Value
India | 4.3%
Bank of India		14,891,830	$	110,946,817
Infosys Technologies, Ltd.
Sponsored ADR		1,741,508		104,333,744
Jindal Steel & Power, Ltd.		7,495,088		99,824,774
Punjab National Bank, Ltd.		11,970,141		267,435,644
Total India				582,540,979
Indonesia | 5.5%
PT Bank Mandiri Tbk		176,711,850		115,058,538
PT Semen Gresik Persero Tbk		139,736,300		133,637,404
PT Tambang Batubara Bukit Asam Tbk		54,094,500		102,057,878
PT Telekomunikasi Indonesia Tbk
Sponsored ADR		7,434,311		254,476,465
PT United Tractors Tbk		64,730,051		132,186,405
Total Indonesia				737,416,690
Israel | 1.1%
Israel Chemicals, Ltd.		14,302,214		149,149,003
Malaysia | 0.6%
British American Tobacco Malaysia
Berhad		5,918,300		79,973,868
Mexico | 6.3%
America Movil SAB de CV ADR, Series L		4,434,235		210,626,162
Desarrolladora Homex SA de CV ADR (a)		3,283,958		82,887,100
Fomento Economico Mexicano SAB
de CV Sponsored ADR		3,835,595		165,505,924
Grupo Mexico SAB de CV, Series B		58,812,793		139,607,652
Grupo Televisa SA Sponsored ADR		8,580,600		149,388,246
Kimberly-Clark de Mexico SAB de CV,
Series A		16,803,565		97,588,409
Total Mexico				845,603,493
Pakistan | 1.0%
Oil & Gas Development Co., Ltd.		32,522,611		53,990,272
Pakistan Petroleum, Ltd.		38,857,393		83,818,696
Total Pakistan				137,808,968
Philippines | 2.0%
Philippine Long Distance Telephone Co.
Sponsored ADR		5,341,410		272,251,668

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

46  Semi-Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio (concluded)
Russia | 6.8%
Magnit OJSC Sponsored GDR (c)		5,606,465	$	96,935,780
Mobile TeleSystems Sponsored ADR		9,488,065		181,791,325
OAO LUKOIL Sponsored ADR		6,065,150		311,985,983
Oriflame Cosmetics SA SDR		1,995,388		103,590,477
TNK-BP Holding		52,970,570		109,021,114
Uralkali Sponsored GDR		6,681,975		117,978,455
Total Russia				921,303,134
South Africa | 11.3%
Kumba Iron Ore, Ltd.		5,164,877		213,149,837
Massmart Holdings, Ltd.		7,023,828		107,541,639
Murray & Roberts Holdings, Ltd.		30,108,824		151,484,575
Nedbank Group, Ltd.		12,397,744		192,741,870
Pretoria Portland Cement Co., Ltd.		33,197,033		137,374,215
Sanlam, Ltd.		80,666,732		239,204,975
Shoprite Holdings, Ltd.		10,186,259		109,388,154
Standard Bank Group, Ltd.		9,559,229		126,449,744
Tiger Brands, Ltd.		5,799,764		127,922,769
Truworths International, Ltd.		17,158,707		119,313,694
Total South Africa				1,524,571,472
South Korea | 11.7%
Hite Brewery Co., Ltd.		759,790		90,219,903
Hyundai Mobis		626,107		104,858,275
Korea Life Insurance Co., Ltd.		19,231,514		133,584,196
KT&G Corp.		4,621,170		227,220,787
NHN Corp. (a)		1,622,527		241,467,732
Samsung Electronics Co., Ltd.		410,972		258,044,304
Shinhan Financial Group Co., Ltd.		9,261,540		341,090,021
Woongjin Coway Co., Ltd.		5,502,374		183,944,857
Total South Korea				1,580,430,075
Taiwan | 6.1%
Advanced Semiconductor
Engineering, Inc.		112,799,361		89,147,317
Hon Hai Precision Industry Co., Ltd.		56,732,711		199,252,188
HTC Corp.		7,296,350		96,801,958
MediaTek, Inc.		6,008,000		83,793,721
Taiwan Semiconductor
Manufacturing Co., Ltd.		189,986,284		355,255,507
Total Taiwan				824,250,691

Description	Shares		Value
Thailand | 1.8%
Banpu Public Co., Ltd.		6,579,500	$	122,682,964
Kasikornbank Public Co., Ltd.		38,592,500		112,085,166
Total Thailand				234,768,130
Turkey | 7.0%
Akbank TAS		33,359,339		159,273,731
Koc Holding AS		44,278,058		149,290,924
Turkcell Iletisim Hizmetleri AS		43,798,106		226,577,075
Turkiye Is Bankasi AS, C Shares		133,203,406		412,408,799
Total Turkey				947,550,529
Total Common Stocks
(Identified cost $11,477,633,344)				12,397,868,601
Preferred Stocks | 3.8%
Brazil | 3.8%
Eletropaulo Metropolitana SA, B Shares		3,877,700		77,253,237
Fertilizantes Fosfatados SA (a)		3,051,900		22,825,845
Ultrapar Participacoes SA		1,921,100		91,946,720
Usinas Siderurgicas de Minas Gerais SA,
A Shares		12,199,500		325,162,296
Total Brazil				517,188,098
Total Preferred Stocks
(Identified cost $478,111,968)				517,188,098
Short-Term Investment | 3.8%
State Street Institutional Treasury
Money Market Fund
(Identified cost $511,675,597)		511,675,597		511,675,597
Total Investments | 99.5%
(Identified cost $12,467,420,909) (b)			$	13,426,732,296
Cash and Other Assets in Excess
of Liabilities | 0.5%				68,219,594
Net Assets | 100.0%			$	13,494,951,890

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

Semi-Annual Report  47

Description	Shares		Value
Lazard Developing Markets Equity Portfolio
Common Stocks | 95.1%
Brazil | 16.1%
Banco Bradesco SA Sponsored ADR		35,130	$	557,162
Cia Hering		19,800		515,568
Cyrela Brazil Realty SA		54,010		583,787
Fibria Celulose SA Sponsored ADR (a)		25,399		375,905
Itau Unibanco Holding SA ADR		27,456		494,483
M Dias Branco SA		9,015		194,784
MRV Engenharia e Participacoes SA		78,895		555,543
Tivit Terceirizacao de Tecnologia e
Servicos SA		34,510		346,056
Totvs SA		6,695		496,839
Ultrapar Participacoes SA Sponsored ADR		10,599		501,227
Vale SA Sponsored ADR		22,215		540,935
Total Brazil				5,162,289
China | 10.6%
China Construction Bank Corp., Class H		854,250		687,457
China Merchants Bank Co., Ltd., Class H		295,256		705,479
China National Materials Co., Ltd.,
Class H		1,173,290		699,550
China Petroleum & Chemical Corp. ADR		5,325		428,716
NetEase.com, Inc. Sponsored ADR (a)		13,405		425,073
Parkson Retail Group, Ltd.		264,100		445,821
Total China				3,392,096
Colombia | 1.9%
Pacific Rubiales Energy Corp. (a)		27,485		616,028
Egypt | 1.8%
Commercial International Bank
Sponsored GDR		48,393		589,008
Hong Kong | 4.9%
AAC Acoustic Technologies Holdings, Inc.		370,200		527,000
China State Construction International
Holdings, Ltd.		2,126,150		647,926
Hidili Industry International Development,
Ltd.		527,400		386,300
Total Hong Kong				1,561,226

Description	Shares		Value
India | 2.8%
HDFC Bank, Ltd. ADR		2,425	$	346,702
ICICI Bank, Ltd. Sponsored ADR		15,420		557,279
Total India				903,981
Indonesia | 3.4%
PT Bank Rakyat Indonesia		438,000		442,398
PT Perusahaan Gas Negara		1,483,610		627,323
Total Indonesia				1,069,721
Kazakhstan | 4.0%
Halyk Savings Bank of Kazakhstan
JSC GDR (a)		64,642		505,077
KazMunaiGas Exploration Production GDR		20,354		375,846
Zhaikmunai LP GDR (a)		59,332		408,830
Total Kazakhstan				1,289,753
Luxembourg | 1.5%
Millicom International Cellular SA		5,888		477,340
Malaysia | 1.7%
Genting Berhad		254,400		557,098
Mexico | 2.8%
Corporacion GEO SAB de CV, Series B (a)		195,456		521,547
Grupo Financiero Banorte SAB de CV		97,307		368,671
Total Mexico				890,218
Philippines | 1.6%
SM Investments Corp.		57,470		516,104
Qatar | 1.5%
Qatar Electricity & Water Co.		16,955		477,157
Russia | 11.8%
Eurasia Drilling Co., Ltd. GDR		34,924		672,690
Gazprom OAO Sponsored ADR		24,715		464,889
Rosneft Oil Co. GDR		91,174		560,435
Sberbank		272,290		653,080
Uralkali Sponsored GDR		29,909		527,820
VTB Bank OJSC GDR		125,725		594,980
X5 Retail Group NV GDR (a)		9,325		310,094
Total Russia				3,783,988

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

48  Semi-Annual Report

Description	Shares		Value
Lazard Developing Markets Equity Portfolio (concluded)
South Africa | 5.7%
Clicks Group, Ltd.		119,810	$	527,006
Exxaro Resources, Ltd. Sponsored ADR		32,680		468,631
MTN Group, Ltd.		29,322		384,397
Standard Bank Group, Ltd.		33,565		443,999
Total South Africa				1,824,033
South Korea | 4.3%
LG Telecom, Ltd.		54,875		340,986
Samsung Electronics Co., Ltd.		795		499,171
Samsung Engineering Co., Ltd.		5,810		538,513
Total South Korea				1,378,670
Taiwan | 11.3%
Cathay Financial Holding Co., Ltd.		319,000		471,583
Hon Hai Precision Industry Co., Ltd. GDR (a)		60,423		436,529
RichTek Technology Corp.		75,000		628,754
Synnex Technology International Corp.		289,000		626,341
Tripod Technology Corp.		124,000		459,992
Wistron Corp. GDR		36,439		539,807
Yuanta Financial Holding Co., Ltd.		872,000		465,344
Total Taiwan				3,628,350
Thailand | 0.9%
PTT Exploration & Production Public
Co., Ltd.		63,900		283,101
Turkey | 3.7%
Tofas Turk Otomobil Fabrikasi AS		160,686		540,643
Turkiye Garanti Bankasi AS ADR		147,340		630,615
Total Turkey				1,171,258

Description	Shares		Value
United Kingdom | 1.7%
Cairn Energy PLC (a)		90,941	$	556,396
United States | 1.1%
NII Holdings, Inc. (a)		10,447		339,736
Total Common Stocks
(Identified cost $31,422,812)				30,467,551
Preferred Stock | 1.0%
Brazil | 1.0%
Gerdau SA Sponsored ADR
(Identified cost $318,137)		23,800		313,684
Short-Term Investment | 4.7%
State Street Institutional Treasury
Money Market Fund
(Identified cost $1,498,040)		1,498,040		1,498,040
Total Investments | 100.8%
(Identified cost $33,238,989) (b)			$	32,279,275
Liabilities in Excess of Cash and
Other Assets | (0.8)%				(259,846	)
Net Assets | 100.0%			$	32,019,429

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

Semi-Annual Report  49

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio
Common Stocks | 92.4%
Brazil | 19.2%
Banco Bradesco SA Sponsored ADR		900	$	14,274
Banco do Brasil SA		1,675		22,875
Cia Hering		485		12,629
Cielo SA		2,070		17,432
Companhia Energetica de Minas Gerais
SA Sponsored ADR		1,035		15,183
Companhia Siderurgica Nacional SA
Sponsored ADR		975		14,323
Fibria Celulose SA Sponsored ADR (a)		875		12,950
Itau Unibanco Holding SA ADR		645		11,616
MRV Engenharia e Participacoes SA		1,980		13,942
Natura Cosmeticos SA		710		15,734
Redecard SA		1,320		18,648
Souza Cruz SA		405		15,258
Tivit Terceirizacao de Tecnologia e Servicos SA		810		8,122
Ultrapar Participacoes SA Sponsored ADR		260		12,295
Vale SA Sponsored ADR		1,520		33,832
Total Brazil				239,113
China | 4.4%
China Construction Bank Corp., Class H		26,000		20,923
China Merchants Bank Co., Ltd., Class H		8,000		19,115
China National Materials Co., Ltd., Class H		25,000		14,906
Total China				54,944
Colombia | 0.9%
Pacific Rubiales Energy Corp. (a)		525		11,767
Egypt | 1.8%
Commercial International Bank		665		7,828
Orascom Construction Industries		350		13,987
Total Egypt				21,815
Hong Kong | 2.7%
AAC Acoustic Technologies Holdings, Inc.		8,000		11,389
China State Construction International
Holdings, Ltd.		46,000		14,018
Hidili Industry International Development, Ltd.		11,000		8,057
Total Hong Kong				33,464

Description	Shares		Value
India | 1.1%
ICICI Bank, Ltd. Sponsored ADR		365	$	13,191
Indonesia | 6.0%
PT Bank Mandiri Tbk		23,000		14,976
PT Bank Rakyat Indonesia		10,000		10,100
PT Perusahaan Gas Negara		35,000		14,799
PT Telekomunikasi Indonesia Tbk
Sponsored ADR		640		21,907
PT United Tractors Tbk		6,000		12,253
Total Indonesia				74,035
Kazakhstan | 1.7%
Halyk Savings Bank of Kazakhstan
JSC GDR (a)		1,510		11,974
Zhaikmunai LP GDR (a)		1,315		9,731
Total Kazakhstan				21,705
Luxembourg | 0.9%
Millicom International Cellular SA		140		11,350
Malaysia | 1.0%
Genting Berhad		5,900		12,920
Mexico | 5.8%
America Movil SAB de CV ADR, Series L		374		17,765
Corporacion GEO SAB de CV, Series B (a)		4,850		12,942
Fomento Economico Mexicano SAB de
CV Sponsored ADR		320		13,808
Grupo Mexico SAB de CV, Series B		5,785		13,732
Grupo Televisa SA Sponsored ADR		785		13,667
Total Mexico				71,914
Philippines | 2.4%
Philippine Long Distance Telephone Co.
Sponsored ADR		350		17,839
SM Investments Corp.		1,280		11,495
Total Philippines				29,334

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

50  Semi-Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio (concluded)
Russia | 10.4%
Eurasia Drilling Co., Ltd. GDR		800	$	15,440
Gazprom OAO Sponsored ADR		550		10,345
Mobile TeleSystems Sponsored ADR		1,210		23,184
OAO LUKOIL Sponsored ADR		450		23,175
Rosneft Oil Co. GDR		2,165		13,380
Sberbank		5,585		13,395
Uralkali Sponsored GDR		1,290		23,246
X5 Retail Group NV GDR (a)		225		7,628
Total Russia				129,793
South Africa | 5.6%
Clicks Group, Ltd.		2,600		11,437
Exxaro Resources, Ltd.		590		8,417
Kumba Iron Ore, Ltd.		330		13,619
Standard Bank Group, Ltd.		1,790		23,678
Tiger Brands, Ltd.		540		11,910
Total South Africa				69,061
South Korea | 9.0%
Korea Life Insurance Co., Ltd.		2,640		18,338
KT&G Corp.		340		16,718
NHN Corp. (a)		130		19,347
Samsung Electronics Co., Ltd.		30		18,836
Samsung Engineering Co., Ltd.		130		12,049
Shinhan Financial Group Co., Ltd.		740		27,253
Total South Korea				112,541
Taiwan | 9.3%
Cathay Financial Holding Co., Ltd.		8,000		11,827
Hon Hai Precision Industry Co., Ltd.		8,000		28,097
RichTek Technology Corp.		1,000		8,383
Synnex Technology International Corp.		7,000		15,171
Taiwan Semiconductor Manufacturing
Co., Ltd.		15,000		28,049
Tripod Technology Corp.		3,000		11,129
Wistron Corp.		9,000		13,207
Total Taiwan				115,863

Description	Shares		Value
Thailand | 2.1%
Banpu Public Co., Ltd.		700	$	13,053
Kasikornbank Public Co., Ltd.		4,700		13,650
Total Thailand				26,703
Turkey | 6.7%
Akbank TAS ADR		2,140		20,972
Koc Holding AS ADR		730		12,592
Tofas Turk Otomobil Fabrikasi AS ADR (c)		1,385		11,810
Turkcell Iletisim Hizmetleri AS ADR		1,750		22,715
Turkiye Garanti Bankasi AS ADR		3,665		15,686
Total Turkey				83,775
United Kingdom | 0.7%
Cairn Energy PLC (a)		1,455		8,902
United States | 0.7%
NII Holdings, Inc. (a)		255		8,293
Total Common Stocks
(Identified cost $1,181,164)				1,150,483
Preferred Stock | 1.5%
Brazil | 1.5%
Usinas Siderurgicas de Minas
Gerais SA, A Shares
(Identified cost $18,949)		710		18,924
Short-Term Investment | 7.5%
State Street Institutional Treasury
Money Market Fund
(Identified cost $93,333)		93,333		93,333
Total Investments | 101.4%
(Identified cost $1,293,446) (b)			$	1,262,740
Liabilities in Excess of Cash and
Other Assets | (1.4)%				(18,010	)
Net Assets | 100.0%			$	1,244,730

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

Semi-Annual Report  51

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio
Corporate Bonds  |  94.9%
Aerospace & Defense  |  1.1%
BE Aerospace, Inc.,
8.50%, 07/01/18	$	525	$	551,250
Bombardier, Inc.,
8.00%, 11/15/14 (c)		550		570,625
				1,121,875
Automotive  |  4.3%
ArvinMeritor, Inc.,
8.125%, 09/15/15		215		206,400
Ford Motor Credit Co.,
7.00%, 10/01/13		1,250		1,274,577
GMAC LLC,
6.75%, 12/01/14		165		159,638
Navistar International Corp.,
8.25%, 11/01/21		825		837,375
The Goodyear Tire & Rubber Co.,
10.50%, 05/15/16		950		1,033,125
TRW Automotive, Inc.,
8.875%, 12/01/17 (c)		1,000		1,030,000
				4,541,115
Building Materials  |  3.3%
Legrand SA,
8.50%, 02/15/25		925		1,120,979
Masco Corp.,
6.125%, 10/03/16		900		870,797
Owens Corning, Inc.,
9.00%, 06/15/19		725		857,225
USG Corp.,
9.50%, 01/15/18		675		668,250
				3,517,251
Cable Television   |  5.2%
Cablevision Systems Corp.,
7.75%, 04/15/18		1,000		1,000,000
Cequel Communications Holdings LLC,
8.625%, 11/15/17 (c)		900		896,625
EchoStar DBS Corp.,
6.625%, 10/01/14		810		810,000
Kabel Deutschland GmbH,
10.625%, 07/01/14		350		362,687
Mediacom Broadband LLC,
8.50%, 10/15/15		875		835,625

Description	Principal Amount (000)		Value
Mediacom LLC,
9.125%, 08/15/19	$	175	$	168,875
Videotron Ltee,
6.875%, 01/15/14		525		527,625
Virgin Media Finance PLC,
9.125%, 08/15/16		900		931,500
				5,532,937
Chemicals  |  2.1%
LBI Escrow Corp.,
8.00%, 11/01/17 (c)		1,000		1,030,000
Momentive Performance Materials, Inc.,
9.75%, 12/01/14		275		259,875
Mosaic Global Holdings, Inc.,
7.30%, 01/15/28		775		891,576
				2,181,451
Computer Services  |  0.5%
SunGard Data Systems, Inc.,
10.25%, 08/15/15		564		582,330
Diversified  |  2.8%
Amsted Industries, Inc.,
8.125%, 03/15/18 (c)		1,000		997,500
General Cable Corp.,
7.125%, 04/01/17		489		484,110
Leucadia National Corp.,
7.00%, 08/15/13		950		969,000
SPX Corp.,
7.625%, 12/15/14		535		549,713
				3,000,323
Electric Generation  |  2.5%
AES Corp.,
7.75%, 03/01/14		900		915,750
Edison Mission Energy,
7.50%, 06/15/13		675		580,500
NRG Energy, Inc.,
7.375%, 01/15/17		600		594,000
RRI Energy, Inc.,
6.75%, 12/15/14		525		530,250
				2,620,500
Electronics  |   1.3%
Amkor Technologies, Inc.,
9.25%, 06/01/16		925		968,937

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

52  Semi-Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Freescale Semiconductor, Inc.,
8.875%, 12/15/14	$	225	$	205,313
NXP BV,
7.875%, 10/15/14		250		229,375
				1,403,625
Energy Exploration & Production  |  4.5%
ATP Oil & Gas Corp.,
11.875%, 05/01/15 (c)		675		489,375
Chesapeake Energy Corp.,
6.375%, 06/15/15		800		826,000
Denbury Resources, Inc.,
9.75%, 03/01/16		590		637,200
Mariner Energy, Inc.,
11.75%, 06/30/16		500		622,500
OPTI Canada, Inc.,
8.25%, 12/15/14		325		282,750
PetroHawk Energy Corp.,
9.125%, 07/15/13		900		938,250
Plains Exploration & Production Co.,
7.75%, 06/15/15		950		940,500
				4,736,575
Energy Services  |  3.3%
Citgo Petroleum Corp.,
11.50%, 07/01/17 (c)		1,025		1,017,312
Compagnie Generale de Geophysique,
7.50%, 05/15/15		875		833,438
Expro Finance Luxembourg SCA,
8.50%, 12/15/16 (c)		700		668,500
Tesoro Corp.,
6.50%, 06/01/17		1,050		960,750
				3,480,000
Environmental  |  0.9%
Browning-Ferris Industries, Inc.,
7.40%, 09/15/35		775		924,780
Financial Services   |  0.9%
Finance One PLC,
0.00%, 07/01/10 (a), (d)		20,000		0
International Lease Finance Corp.:
8.625%, 09/15/15 (c)		500		473,750
8.75%, 03/15/17 (c)		500		473,750
Morgan Guarantee Trust,
0.00%, 07/01/10 (a), (d)		10,569		0
				947,500

Description	Principal Amount (000)		Value
Food & Beverages  |  1.8%
Constellation Brands, Inc.,
7.25%, 05/15/17	$	700	$	709,625
Dean Foods Co.,
7.00%, 06/01/16		800		748,000
NBTY, Inc.,
7.125%, 10/01/15		475		472,625
				1,930,250
Forest & Paper Products  |  1.1%
Georgia-Pacific Corp.,
9.50%, 12/01/11		500		537,500
Smurfit Capital Funding PLC,
7.50%, 11/20/25		750		665,625
				1,203,125
Gaming  |  6.1%
Ameristar Casinos, Inc.,
9.25%, 06/01/14		990		1,037,025
MGM Resorts International,
10.375%, 05/15/14		900		978,750
Mohegan Tribal Gaming Authority,
7.125%, 08/15/14		300		216,750
Peninsula Gaming LLC:
8.375%, 08/15/15		625		622,656
10.75%, 08/15/17		225		223,875
Penn National Gaming, Inc.,
8.75%, 08/15/19		825		847,688
Pinnacle Entertainment, Inc.,
8.625%, 08/01/17 (c)		800		824,000
Scientific Games Corp.:
7.875%, 06/15/16 (c)		525		514,500
9.25%, 06/15/19		250		255,625
Wynn Las Vegas LLC,
6.625%, 12/01/14		1,010		1,012,525
				6,533,394
Gas Distribution  |  4.6%
Copano Energy LLC,
7.75%, 06/01/18		700		661,500
El Paso Corp.,
7.00%, 06/15/17		650		646,340
Ferrellgas Partners LP,
8.625%, 06/15/20		800		800,000
Inergy LP,
8.75%, 03/01/15		525		534,187
MarkWest Energy Partners LP,
8.50%, 07/15/16		1,000		1,010,000

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

Semi-Annual Report  53

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Niska Gas Storage US LLC,
8.875%, 03/15/18 (c)	$	750	$	761,250
The Williams Cos., Inc.,
8.75%, 03/15/32		407		474,955
				4,888,232
Health Services  |  7.9%
Apria Healthcare Group, Inc.,
11.25%, 11/01/14 (c)		550		585,750
Biomet, Inc.,
10.00%, 10/15/17		425		456,875
Community Health Systems, Inc.,
8.875%, 07/15/15		920		948,750
Fresenius US Finance II, Inc.,
9.00%, 07/15/15 (c)		525		568,969
HCA, Inc.,
9.25%, 11/15/16		925		980,500
Health Management Associates, Inc.,
6.125%, 04/15/16		1,000		947,500
HealthSouth Corp.,
10.75%, 06/15/16		515		556,200
Lantheus Medical Imaging, Inc.,
9.75%, 05/15/17 (c)		375		371,250
Service Corp. International,
6.75%, 04/01/16		750		744,375
Tenet Healthcare Corp.,
8.875%, 07/01/19 (c)		1,000		1,060,000
The Cooper Cos., Inc.,
7.125%, 02/15/15		525		526,312
Ventas Realty LP,
6.50%, 06/01/16		650		661,874
				8,408,355
Hotels  |  1.9%
Host Hotels & Resorts, Inc.,
7.125%, 11/01/13		1,025		1,032,688
Wyndham Worldwide Corp.,
6.00%, 12/01/16		1,000		970,170
				2,002,858
Leisure & Entertainment  |  2.2%
AMC Entertainment, Inc.:
8.00%, 03/01/14		497		478,363
8.75%, 06/01/19		200		201,000
Live Nation Entertainment, Inc.,
8.125%, 05/15/18 (c)		135		130,950

Description	Principal Amount (000)		Value
Royal Caribbean Cruises, Ltd.,
7.25%, 06/15/16	$	330	$	322,575
Speedway Motorsports, Inc.,
6.75%, 06/01/13		875		872,812
Ticketmaster Entertainment, Inc.,
10.75%, 08/01/16		350		377,125
				2,382,825
Machinery  |  1.4%
Case New Holland, Inc.:
7.125%, 03/01/14		650		672,750
7.75%, 09/01/13		200		204,500
Terex Corp.,
10.875%, 06/01/16		550		592,625
				1,469,875
Media  |  3.8%
Clear Channel Worldwide Holdings, Inc.,
9.25%, 12/15/17 (c)		1,000		1,005,000
Lamar Media Corp.,
7.875%, 04/15/18 (c)		1,000		997,500
LIN Television Corp.,
8.375%, 04/15/18 (c)		1,000		995,000
WMG Acquisition Corp.,
9.50%, 06/15/16		945		1,006,425
				4,003,925
Metals & Mining  |  2.3%
Alcoa, Inc.,
5.72%, 02/23/19		650		618,911
Arch Western Finance LLC,
6.75%, 07/01/13		775		776,937
Century Aluminum Co.,
8.00%, 05/15/14		202		190,385
Freeport-McMoRan Copper & Gold, Inc.:
8.25%, 04/01/15		650		705,250
8.375%, 04/01/17		100		110,000
				2,401,483
Packaging  |  0.9%
Reynolds Group DL Escrow, Inc.,
7.75%, 10/15/16 (c)		1,000		977,500
Pharmaceutical & Biotechnology  |  1.0%
Mylan, Inc.:
7.625%, 07/15/17 (c)		400		408,000
7.875%, 07/15/20 (c)		650		663,000
				1,071,000

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

54  Semi-Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Printing & Publishing  |  1.7%
Deluxe Corp.,
7.375%, 06/01/15	$	1,005	$	997,463
The McClatchy Co.,
11.50%, 02/15/17 (c)		750		761,250
				1,758,713
Real Estate  |  2.9%
CB Richard Ellis Services, Inc.,
11.625%, 06/15/17		600		672,000
DuPont Fabros Technology LP,
8.50%, 12/15/17 (c)		1,000		1,025,000
Forest City Enterprises, Inc.,
7.625%, 06/01/15		475		438,187
Icahn Enterprises LP:
7.75%, 01/15/16 (c)		500		486,250
8.00%, 01/15/18 (c)		500		485,000
				3,106,437
Restaurants  |  1.4%
Landry’s Restaurants, Inc.,
11.625%, 12/01/15		575		595,125
Wendy’s/Arby’s Restaurants LLC,
10.00%, 07/15/16		825		858,000
				1,453,125
Retail  |  4.2%
AutoNation, Inc.,
6.75%, 04/15/18		175		172,375
Ingles Markets, Inc.,
8.875%, 05/15/17		925		941,187
QVC, Inc.,
7.50%, 10/01/19 (c)		1,000		982,500
Saks, Inc.,
9.875%, 10/01/11		585		614,250
Stater Brothers Holdings, Inc.,
8.125%, 06/15/12		775		775,000
SuperValu, Inc.,
8.00%, 05/01/16		1,000		990,000
				4,475,312
Steel-Producers  |  2.1%
AK Steel Corp.,
7.625%, 05/15/20		1,000		970,000
Steel Dynamics, Inc.:
7.375%, 11/01/12		540		558,900
7.75%, 04/15/16		264		265,320

Description	Principal Amount (000)		Value
United States Steel Corp.,
6.05%, 06/01/17	$	475	$	451,250
				2,245,470
Support Services  |  3.6%
ARAMARK Corp.,
8.50%, 02/01/15		600		606,000
Avis Budget Car Rental LLC:
7.625%, 05/15/14		640		616,000
7.75%, 05/15/16		410		382,837
Expedia, Inc.,
8.50%, 07/01/16		375		403,125
Hertz Corp.,
8.875%, 01/01/14		650		658,125
United Rentals North America, Inc.,
9.25%, 12/15/19		750		755,625
West Corp.,
11.00%, 10/15/16		350		356,125
				3,777,837
Telecommunications  |  10.0%
Cincinnati Bell, Inc.,
8.25%, 10/15/17		850		794,750
Citizens Communications Co.,
6.25%, 01/15/13		1,000		1,002,500
Cricket Communications, Inc.,
7.75%, 05/15/16		750		765,000
Equinix, Inc.,
8.125%, 03/01/18		1,000		1,022,500
GCI, Inc.,
8.625%, 11/15/19 (c)		1,000		997,500
Intelsat Corp.,
9.25%, 08/15/14		375		383,437
Intelsat Jackson Holdings, Ltd.,
11.25%, 06/15/16		350		372,750
Level 3 Financing, Inc.,
9.25%, 11/01/14		650		589,875
Qwest Corp.,
7.875%, 09/01/11		800		832,000
Rogers Wireless Communications, Inc.,
9.625%, 05/01/11		1,000		1,067,276
Sprint Capital Corp.,
6.90%, 05/01/19		1,225		1,108,625
Wind Acquisition Finance SA,
11.75%, 07/15/17 (c)		800		820,000
Windstream Corp.,
8.625%, 08/01/16		900		906,750
				10,662,963

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

Semi-Annual Report 55

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (concluded)
Transportation  |  1.3%
Kansas City Southern Railway Co.,
13.00%, 12/15/13	$	325	$	390,000
Teekay Corp.,
8.50%, 01/15/20		1,000		995,000
				1,385,000
Total Corporate Bonds
(Identified cost $98,370,070)				100,727,941
Description	Shares		Value
Warrant | 0.0%
Cable Television  |  0.0%
Ono Finance PLC,
03/16/11
(Identified cost $64,841) (a), (c)		470	$	5
Short-Term Investment  |  3.4%
State Street Institutional Treasury
Money Market Fund
(Identified cost $3,660,863)		3,660,863		3,660,863

Description	Principal Amount (000)		Value
Repurchase Agreement  |  0.7%
State Street Bank and Trust Co.,
0.00%, 07/01/10
(Dated 06/30/10, collateralized
by $690,000 United States
Treasury Note, 2.50%, 04/30/15,
with a value of $717,876)
Proceeds of $702,000
(Identified cost $702,000)	$	702	$	702,000
Total Investments | 99.0%
(Identified cost $102,797,774) (b)			$	105,090,809
Cash and Other Assets in Excess
of Liabilities | 1.0%				1,070,714
Net Assets | 100.0%			$	106,161,523

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

56  Semi-Annual Report

Description	Shares		Value
Lazard Capital Allocator Opportunistic Strategies Portfolio
Exchange-Traded Funds | 88.5%
iPath S&P 500 VIX Short-Term Futures
ETN (a)		89,500	$	2,794,190
IQ ARB Merger Arbitrage ETF		96,200		2,424,240
iShares Barclays MBS Bond Fund		159,900		17,497,857
iShares Dow Jones US Broker-Dealers
Index Fund		153,300		3,686,865
iShares JPMorgan USD Emerging Markets
Bond Fund		63,200		6,567,744
iShares MSCI Brazil Index Fund		115,200		7,137,792
iShares MSCI Chile Investable Market
Index Fund		106,500		6,037,485
iShares S&P Global Consumer Staples
Index Fund		143,300		7,602,065
iShares S&P Global Materials Index Fund		165,000		8,642,700
Market Vectors Agribusiness ETF		209,200		7,579,316
Market Vectors Brazil Small-Cap ETF		96,300		4,200,606
PowerShares DB Oil Fund (a)		246,000		5,857,260
PowerShares Dynamic Oil & Gas Services
Portfolio		446,500		6,447,460
PowerShares Global Listed Private Equity
Portfolio		701,000		5,776,240
PowerShares Global Water Portfolio		587,100		9,411,213
Rydex S&P Equal Weight Industrial ETF		144,800		6,232,206
SPDR Barclays Capital Convertible
Securities ETF		182,000		6,562,920
SPDR Barclays Capital High Yield
Bond ETF		178,000		6,733,740
SPDR Gold Trust (a)		135,300		16,463,304

Description	Shares		Value
Vanguard Information Technology
Index ETF		321,300	$	15,891,498
Vanguard Short-Term Corporate Bond ETF		189,500		14,517,595
WisdomTree Dreyfus Emerging Currency
Fund		391,700		8,327,542
Total Exchange-Traded Funds
(Identified cost $173,137,834)				176,391,838
Closed-End Management Investment
Companies | 10.2%
China Fund, Inc.		163,000		4,262,450
MFS Multimarket Income Trust		1,265,000		8,285,750
Royce Value Trust, Inc. (a)		735,000		7,768,950
Total Closed-End Management
Investment Companies
(Identified cost $20,583,506)				20,317,150
Short-Term Investment | 2.3%
State Street Institutional Treasury
Money Market Fund
(Identified cost $4,536,630)		4,536,630		4,536,630
Total Investments | 101.0%
(Identified cost $198,257,970) (b)			$	201,245,618
Liabilities in Excess of Cash and
Other Assets | (1.0)%				(1,983,111	)
Net Assets | 100.0%			$	199,262,507

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

Semi-Annual Report  57

Lazard Capital Allocator Opportunistic Strategies Portfolio (concluded)

Forward Currency Contracts open at June 30, 2010:
Forward Currency Contracts	Expiration Date	Foreign Currency	U.S. $Cost on Origination Date			U.S. $ Current Value		Unrealized Appreciation			Unrealized Depreciation
Forward Currency Purchase Contract
EUR	09/15/10	5,000,000		$	6,070,002		$  6,116,706		$	46,704		$	—
Forward Currency Sale Contract
GBP	09/15/10	4,153,900			6,070,002		6,206,103			—			136,101
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts									$	46,704		$	136,101

Swap Agreement open at June 30, 2010:
Currency	Notional Amount	Expiration	Counterparty	Pay	Receive	Net Unrealized Depreciation
USD	4,162,938	03/02/11	Goldman Sachs	1 Month USD	Appreciation, and		$	(315,727	)
			International	LIBOR plus 0.3484%	dividends paid, on securities in the Equity Basket

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

58  Semi-Annual Report

   The Lazard Funds, Inc. Notes to Portfolios of Investments June 30, 2010 (unaudited)

(a)	Non-income producing security.
(b)	For federal income tax purposes, the aggregate cost, aggregate gross unrealized appreciation, aggregate gross unrealized depreciation and the net unrealized appreciation (depreciation) are as follows:

Portfolio	Aggregate Cost		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation			Net Unrealized Appreciation (Depreciation)
U.S. Equity Value	$	11,796,058	$	270,485		$	1,038,121	$	(767,636	)
U.S. Strategic Equity		67,709,904		4,243,606			4,355,859		(112,253	)
U.S. Mid Cap Equity		166,901,267		15,302,048			9,745,956		5,556,092
U.S. Small-Mid Cap Equity		74,503,873		8,593,690			3,725,886		4,867,804
International Equity		134,167,683		8,293,000			15,226,661		(6,933,661	)
International Equity Select		5,633,561		354,003			576,551		(222,548	)
International Strategic Equity		329,096,844		17,588,874			31,539,834		(13,950,960	)
International Small Cap Equity		58,315,970		5,535,865			5,568,750		(32,885	)
Global Listed Infrastructure		102,058,059		859,122			14,253,339		(13,394,217	)
Emerging Markets Equity		12,467,420,909		1,535,190,881			575,879,494		959,311,387
Developing Markets Equity		33,238,989		1,336,920			2,296,634		(959,714	)
Emerging Markets Equity Blend		1,293,446		10,720			41,426		(30,706	)
U.S. High Yield		102,797,774		4,387,210			2,094,175		2,293,035
Capital Allocator Opportunistic Strategies		198,257,970		9,416,511			6,428,863		2,987,648

(c)

Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At June 30, 2010, these securities amounted to 0.8%, 2.9%, 0.7%, 0.9% and 21.7% of net assets of Lazard International Equity Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio and Lazard U.S. High Yield Portfolio, respectively, and are considered to be liquid.

(d)

Bankrupt issuer; security valued at zero; principal amount denominated in respective country’s currency.

Security Abbreviations:		Currency Abbreviations:
ADR	— American Depositary Receipt	AUD	— Australian Dollar
ETF	— Exchange-Traded Fund	CHF	— Swiss Franc
ETN	— Exchange-Traded Note	EUR	— Euro
GDR	— Global Depositary Receipt	GBP	— British Pound Sterling
REIT	— Real Estate Investment Trust	JPY	— Japanese Yen
SDR	— Swedish Depositary Receipt	KRW	— South Korean Won
		MXN	— Mexican New Peso
		USD	— US Dollar

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

Semi-Annual Report  59

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 Global Listed Infrastructure Portfolio		Lazard Emerging Markets Equity Portfolio		Lazard Developing Markets Equity Portfolio		Lazard Emerging Markets Equity Blend Portfolio
Agriculture	1.0	%	0.8	%	—	%	—	%	—	%	2.1	%	1.6	%	1.9	%
Airport Development & Maintenance	—		—		—		—		12.0		—		—		—
Alcohol & Tobacco	4.2		5.9		8.1		1.1		—		5.2		—		2.6
Apparel & Textiles	—		—		—		—		—		—		1.6		1.0
Automotive	3.2		0.9		2.9		1.0		—		—		1.7		0.9
Banking	14.9		17.0		17.0		1.7		—		17.0		23.7		18.8
Building Materials	—		—		—		—		—		1.0		—		—
Cable Television	—		—		2.0		—		—		—		—		—
Chemicals	—		—		1.5		2.4		—		—		—		—
Commercial Services	5.1		2.4		3.8		15.2		—		3.5		—		1.4
Computer Software	1.0		2.6		1.0		2.3		—		3.1		2.9		1.6
Construction & Engineering	0.8		—		3.0		2.1		—		2.6		3.7		3.2
Consumer Products	0.7		—		—		2.9		—		3.4		—		1.3
Diversified	—		—		—		—		—		1.1		—		1.0
Electric	1.0		—		1.2		—		31.5		1.6		—		1.2
Energy Exploration & Production	0.9		1.2		1.2		—		—		1.0		7.0		2.4
Energy Integrated	5.3		8.0		1.5		1.4		—		4.8		7.3		6.4
Energy Services	0.5		—		—		3.8		3.8		—		2.1		1.2
Financial Services	2.3		3.4		7.2		4.2		—		7.0		1.4		3.7
Food & Beverages	3.8		3.6		2.8		0.9		—		2.2		0.6		2.1
Forest & Paper Products	—		—		—		0.9		—		0.7		1.2		1.0
Gas Utilities	—		—		—		—		8.4		0.7		1.9		1.2
Health Services	—		—		—		3.3		—		—		—		—
Housing	3.5		1.8		1.4		4.0		—		1.6		—		—
Insurance	3.7		4.3		3.5		2.1		—		1.0		1.5		2.4
Leisure & Entertainment	3.0		1.0		3.5		0.8		—		1.1		1.7		2.1
Manufacturing	7.0		5.1		2.8		13.6		—		2.2		2.2		2.2
Medical Products	—		—		—		7.4		—		—		—		—
Metals & Mining	3.2		4.7		2.4		—		—		11.0		4.1		8.3
Pharmaceutical & Biotechnology	9.5		12.1		9.1		4.1		—		—		—		—
Real Estate	2.2		2.4		2.7		—		—		—		5.2		2.2
Retail	4.5		6.0		3.9		7.1		—		3.2		5.6		2.5
Semiconductors & Components	4.2		6.3		2.3		4.1		—		5.8		6.6		6.2
Technology	3.1		1.8		3.2		2.9		—		0.8		1.1		0.7
Technology Hardware	—		—		1.7		2.5		1.2		2.2		6.1		4.5
Telecommunications	6.2		6.3		4.8		2.4		—		9.0		3.8		9.9
Transportation	2.6		—		1.3		3.2		35.1		0.8		—		—
Utilities	—		—		—		—		—		—		1.5		—
Water	—		—		—		—		7.1		—		—		—
Subtotal	97.4		97.6		95.8		97.4		99.1		95.7		96.1		93.9
Short-Term Investments	—		2.0		3.0		1.6		2.3		3.8		4.7		7.5
Repurchase Agreement	1.9		—		—		—		—		—		—		—
Total Investments	99.3	%	99.6	%	98.8	%	99.0	%	101.4	%	99.5	%	100.8	%	101.4	%

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

60  Semi-Annual Report

(This Page Intentionally Left Blank)

Semi-Annual Report  61

   The Lazard Funds, Inc. Statements of Assets and Liabilities (unaudited)

June 30, 2010	Lazard U.S. Equity Value Portfolio			Lazard U.S. Strategic Equity Portfolio
ASSETS
Investments in securities, at value	$	11,028,422		$	67,597,651
Cash		—			—
Foreign currency		—			—
Receivables for:
Capital stock sold		—			106,958
Dividends and interest		16,683			18,790
Investments sold		343,112			459,510
Amount due from Investment Manager (Note 3)		15,990			—
Total assets		11,404,207			68,182,909
LIABILITIES
Payables for:
Management fees		—			41,722
Accrued distribution fees		57			2,545
Accrued directors’ fees		70			581
Investments purchased		486,231			688,792
Capital stock redeemed		—			2,303
Other accrued expenses and payables		41,833			46,938
Total liabilities		528,191			782,881
Net assets	$	10,876,016		$	67,400,028
NET ASSETS
Paid in capital	$	14,618,375		$	93,265,323
Undistributed net investment income (loss)		35,003			1,072,502
Accumulated net realized loss		(3,009,726	)		(26,825,544	)
Net unrealized appreciation (depreciation) on:
Investments		(767,636	)		(112,253	)
Foreign currency		—			—
Net assets	$	10,876,016		$	67,400,028
Institutional Shares
Net assets	$	10,623,193		$	58,752,229
Shares of capital stock outstanding*		1,338,850			8,051,957
Net asset value, offering and redemption price per share	$	7.93		$	7.30
Open Shares
Net assets	$	252,823		$	8,647,799
Shares of capital stock outstanding*		31,725			1,186,459
Net asset value, offering and redemption price per share	$	7.97		$	7.29
Cost of investments in securities	$	11,796,058		$	67,709,904
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.

62  Semi-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
$	172,457,359		$	79,371,677		$	127,234,022			$	5,411,013			$	315,145,884
	—			191			240				—				—
	—			—			99,243				923				212,270
	210,961			105,725			67,017				2,270				1,369,365
	108,673			43,250			512,334				31,913				1,597,874
	1,933,927			1,115,478			417,952				—				1,891,971
	—			—			—				28,822				—
	174,710,920			80,636,321			128,330,808				5,474,941				320,217,364
	113,646			50,161			81,819				—				203,003
	16,695			4,167			4,051				753				4,828
	1,675			583			1,181				65				2,508
	909,717			2,025,277			—				115				872,877
	279,770			148,858			67,721				—				54,393
	63,279			48,290			64,802				40,709				96,687
	1,384,782			2,277,336			219,574				41,642				1,234,296
$	173,326,138		$	78,358,985		$	128,111,234			$	5,433,299			$	318,983,068
$	274,960,193		$	87,311,982		$	177,224,660			$	10,213,176			$	420,065,498
	466,308			(150,058	)		5,034,502				294,571				5,283,356
	(107,656,455	)		(13,670,743	)		(47,219,340	)			(4,851,900	)			(92,430,146	)
	5,556,092			4,867,804			(6,933,661	)			(222,548	)			(13,950,960	)
	—			—			5,073				—				15,320
$	173,326,138		$	78,358,985		$	128,111,234			$	5,433,299			$	318,983,068
$	112,410,823		$	59,322,649		$	110,377,901			$	2,121,591			$	295,300,579
	11,144,043			5,167,568			9,528,369				314,825				34,811,217
$	10.09		$	11.48		$	11.58			$	6.74			$	8.48
$	60,915,315		$	19,036,336		$	17,733,333			$	3,311,708			$	23,682,489
	6,127,435			1,694,639			1,521,950				490,910				2,790,096
$	9.94		$	11.23		$	11.65			$	6.75			$	8.49
$	166,901,267		$	74,503,873		$	134,167,683			$	5,633,561			$	329,096,844
$	—		$	—		$	98,173			$	921			$	208,430

Semi-Annual Report  63

June 30, 2010	Lazard International Small Cap Equity Portfolio			Lazard Global Listed Infrastructure Portfolio
ASSETS
Investments in securities, at value	$	58,283,085		$	88,663,842
Cash		—			—
Foreign currency		46,118			156,614
Swap agreement cash collateral		—			—
Receivables for:
Capital stock sold		20,540			204,011
Dividends and interest		167,346			446,096
Investments sold		506,452			12,484
Amount due from Investment Manager (Note 3)		—			—
Gross unrealized appreciation on:
Swap agreement		—			—
Forward currency contracts		—			22,769
Deferred offering expenses		—			—
Total assets		59,023,541			89,505,816
LIABILITIES
Payables for:
Management fees		31,073			59,394
Accrued distribution fees		5,107			10
Accrued directors’ fees		559			563
Investments purchased		—			473,201
Capital stock redeemed		41,099			62,102
Dividends		—			—
Gross unrealized depreciation on:
Swap agreement		—			—
Forward currency contracts		—			1,481,295
Premium for written swap agreement		—			—
Other accrued expenses and payables		80,132			2,023
Total liabilities		157,970			2,078,588
Net assets	$	58,865,571		$	87,427,228
NET ASSETS
Paid in capital	$	143,188,398		$	95,141,339
Undistributed (distributions in excess of) net investment income		1,551,214			501,863
Accumulated net realized gain (loss)		(85,837,694	)		6,646,053
Net unrealized appreciation (depreciation) on:
Investments		(32,885	)		(13,394,217	)
Swap agreement		—			—
Foreign currency and forward currency contracts		(3,462	)		(1,467,810	)
Net assets	$	58,865,571		$	87,427,228
Institutional Shares
Net assets	$	37,020,067		$	87,378,466
Shares of capital stock outstanding*		5,892,251			9,578,922
Net asset value, offering and redemption price per share	$	6.28		$	9.12
Open Shares
Net assets	$	21,845,504		$	48,762
Shares of capital stock outstanding*		3,474,831			5,347
Net asset value, offering and redemption price per share	$	6.29		$	9.12
Cost of investments in securities	$	58,315,970		$	102,058,059
Cost of foreign currency	$	46,038		$	157,289
* $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.

64Semi-Annual Report

Lazard Emerging Markets Equity Portfolio			Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Equity Blend Portfolio			Lazard U.S. High Yield Portfolio			Lazard Capital Allocator Opportunistic Strategies Portfolio
$	13,426,732,296		$	32,279,275		$	1,262,740		$	105,090,809		$	201,245,618
	98,923			—			—			868			—
	26,317,032			152,606			5,866			—			—
	—			—			—			—			270,000
	59,527,199			382,602			4,000			230,328			233,848
	46,823,413			96,624			1,761			1,836,526			27,413
	15,953,132			254,780			—			—			—
	—			—			30,701			—			—
	—			—			—			—			326,137
	—			—			—			—			46,704
	—			—			38,030			—			—
	13,575,451,995			33,165,887			1,343,098			107,158,531			202,149,720
	11,202,221			4,060			—			24,578			148,036
	814,335			1,568			11			4,592			1,544
	91,069			464			2,772			726			1,688
	28,723,234			1,053,385			28,788			702,868			—
	24,920,625			24,062			—			55,235			1,918,840
	—			—			—			160,995			—
	—			—			—			—			641,864
	—			—			—			—			136,101
	—			—			—			—			2,031
	14,748,621			62,919			66,797			48,014			37,109
	80,500,105			1,146,458			98,368			997,008			2,887,213
$	13,494,951,890		$	32,019,429		$	1,244,730		$	106,161,523		$	199,262,507
$	13,667,514,700		$	22,268,367		$	1,255,500		$	128,479,191		$	232,275,928
	43,205,246			190,028			753			(230,257	)		743,095
	(1,163,337,880	)		10,520,111			19,124			(24,380,446	)		(36,338,971	)
	947,946,090			(959,714	)		(30,706	)		2,293,035			2,987,648
	—			—			—			—			(315,727	)
	(376,266	)		637			59			—			(89,466	)
$	13,494,951,890		$	32,019,429		$	1,244,730		$	106,161,523		$	199,262,507
$	9,755,535,952		$	23,863,286		$	1,194,795		$	83,483,882		$	192,968,582
	561,124,035			1,893,582			119,620			17,819,645			22,858,960
$	17.39		$	12.60		$	9.99		$	4.68		$	8.44
$	3,739,415,938		$	8,156,143		$	49,935		$	22,677,641		$	6,293,925
	212,240,819			647,984			5,000			4,816,895			746,174
$	17.62		$	12.59		$	9.99		$	4.71		$	8.43
$	12,467,420,909		$	33,238,989		$	1,293,446		$	102,797,774		$	198,257,970
$	26,460,064		$	152,577		$	5,863		$	—		$	—

Semi-Annual Report  65

The Lazard Funds, Inc. Statements of Operations (unaudited)

For the Six Months Ended June 30, 2010	Lazard U.S. Equity Value Portfolio			Lazard U.S. Strategic Equity Portfolio
Investment Income
Income
Dividends	$	103,759		$	674,198
Interest		11			25
Total investment income*		103,770			674,223
Expenses
Management fees (Note 3)		37,179			278,658
Custodian fees		28,550			28,058
Distribution fees (Open Shares)		375			11,370
Shareholders’ services		12,382			12,964
Administration fees		25,864			32,226
Shareholders’ reports		107			1,130
Professional services		26,465			27,019
Registration fees		13,862			13,985
Directors’ fees and expenses		151			1,246
Other		1,729			2,731
Total gross expenses		146,664			409,387
Management fees waived and expenses reimbursed		(87,267	)		(5,646	)
Administration fees waived		(9,375	)		—
Expense reductions (Note 2(j))		—			—
Total net expenses		50,022			403,741
Net investment income (loss)		53,748			270,482
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Net realized gain (loss) on:
Investments**		246,823			2,347,115
Foreign currency		—			—
Net change in unrealized depreciation on:
Investments†		(1,258,543	)		(9,319,052	)
Foreign currency		—			—
Net realized and unrealized loss on investments and foreign currency		(1,011,720	)		(6,971,937	)
Net decrease in net assets resulting from operations	$	(957,972	)	$	(6,701,455	)
*  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.

66Semi-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
$	1,424,371		$	308,677		$	2,551,702		$	135,906		$	5,625,321
	148			174			156			5			656
	1,424,519			308,851			2,551,858			135,911			5,625,977
	767,175			299,002			550,099			31,464			1,287,110
	38,773			37,387			63,261			45,781			120,348
	84,615			25,330			24,000			5,102			28,015
	15,305			13,944			13,905			12,527			13,430
	45,253			32,769			39,465			25,536			59,118
	6,401			3,904			4,901			556			4,367
	28,198			27,026			27,696			26,462			29,213
	15,795			15,562			14,068			12,886			16,019
	3,611			1,265			2,562			139			5,562
	4,961			2,741			3,962			1,809			6,891
	1,010,087			458,930			743,919			162,262			1,570,073
	—			—			—			(113,568	)		—
	—			—			—			—			—
	(73	)		(20	)		(30	)		(2	)		—
	1,010,014			458,910			743,889			48,692			1,570,073
	414,505			(150,059	)		1,807,969			87,219			4,055,904
	19,799,766			8,988,804			(2,514,753	)		(19,627	)		6,412,710
	—			—			(59,622	)		(2,983	)		(279,432	)
	(21,665,514	)		(11,127,385	)		(16,729,920	)		(941,087	)		(45,567,616	)
	—			—			(1,238	)		(94	)		(46,917	)
	(1,865,748	)		(2,138,581	)		(19,305,533	)		(963,791	)		(39,481,255	)
$	(1,451,243	)	$	(2,288,640	)	$	(17,497,564	)	$	(876,572	)	$	(35,425,351	)
$	—		$	—		$	249,336		$	12,758		$	556,996
$	—		$	—		$	531		$	—		$	—
$	—		$	—		$	—		$	—		$	(18,189	)

Semi-Annual Report  67

For the Six Months Ended June 30, 2010	Lazard International Small Cap Equity Portfolio				Lazard Global Listed Infrastructure Portfolio
Investment Income
Income
Dividends		$	987,400			$	1,963,380
Interest			—				328
Total investment income*			987,400				1,963,708
Expenses
Management fees (Note 3)			253,801				354,228
Custodian fees			77,143				61,206
Distribution fees (Open Shares)			31,491				64
Shareholders’ services			15,745				6,670
Administration fees			31,563				32,667
Shareholders’ reports			8,858				12,920
Professional services			26,996				50,648
Registration fees			14,039				19,804
Directors’ fees and expenses			1,195				1,110
Amortization of offering expenses			—				—
Other			2,944				4,405
Total gross expenses			463,775				543,722
Management fees waived and expenses reimbursed			(43,594	)			(31,983	)
Administration fees waived			—				—
Expense reductions (Note 2(j))			—				—
Total net expenses			420,181				511,739
Net investment income			567,219				1,451,969
Net Realized and Unrealized Gain (Loss) on Investments, Swap Agreements, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments**			(2,674,569	)			(615,173	)
Swap agreements			—				—
Foreign currency and forward currency contracts			(7,314	)			7,261,226
Net change in unrealized appreciation (depreciation) on:
Investments†			(1,830,164	)			(13,394,217	)
Swap agreements			—				—
Foreign currency and forward currency contracts			(4,042	)			(1,467,810	)
Net realized and unrealized loss on investments, swap agreements, foreign currency and forward currency contracts			(4,516,089	)			(8,215,974	)
Net increase (decrease) in net assets resulting from operations		$	(3,948,870	)		$	(6,764,005	)
*  Net of foreign withholding taxes of		$	117,996			$	361,638
** Net of foreign capital gains taxes of		$	—			$	—
† Includes net change in unrealized foreign capital gains taxes of		$	—			$	—

(a) From Portfolio’s commencement of operations on May 28, 2010.

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

68  Semi-Annual Report

Lazard Emerging Markets Equity Portfolio				Lazard Developing Markets Equity Portfolio				Lazard Emerging Markets Equity Blend Portfolio (a)				Lazard U.S. High Yield Portfolio				Lazard Capital Allocator Opportunistic Strategies Portfolio
	$	243,822,298			$	583,092			$	2,022			$	—			$	1,833,316
		31,685				34				6				3,900,222				202
		243,853,983				583,126				2,028				3,900,222				1,833,518
		64,860,457				273,224				982				264,525				1,068,547
		5,102,138				62,276				8,832				35,048				27,940
		4,651,001				41,615				11				20,125				17,545
		2,544,191				17,859				890				13,155				14,984
		722,989				30,260				5,612				34,414				46,166
		824,963				2,811				701				1,750				2,624
		129,874				26,909				10,259				27,184				28,212
		182,298				13,255				280				15,712				17,424
		200,484				1,033				2,772				1,572				3,600
		—				—				3,406				—				—
		188,818				2,431				775				3,030				4,897
		79,407,213				471,673				34,520				416,515				1,231,939
		—				(66,544	)			(31,682	)			(127,839	)			(120,717	)
		—				—				(1,563	)			—				—
		(1,512	)			—				—				—				(251	)
		79,405,701				405,129				1,275				288,676				1,110,971
		164,448,282				177,997				753				3,611,546				722,547
		433,501,969				8,600,669				21,664				1,068,284				2,270,967
		—				—				—				—				153,259
		(16,799,841	)			(111,518	)			(2,540	)			—				—
		(1,108,740,152	)			(8,877,412	)			(30,706	)			(1,422,284	)			(11,833,289	)
		—				—				—				—				(315,727	)
		164,848				(1,518	)			59				—				(89,474	)
		(691,873,176	)			(389,779	)			(11,523	)			(354,000	)			(9,814,264	)
	$	(527,424,894	)		$	(211,782	)		$	(10,770	)		$	3,257,546			$	(9,091,717	)
	$	19,501,793			$	36,762			$	210			$	—			$	2,313
	$	885,719			$	1,699			$	—			$	—			$	—
	$	1,315,271			$	—			$	—			$	—			$	—

Semi-Annual Report  69

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

	Lazard U.S. Equity Value Portfolio
	Six Months Ended June 30, 2010 (unaudited)				Year Ended December 31, 2009
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	53,748		$	115,530
Net realized gain (loss) on investments			246,823			(1,128,878	)
Net change in unrealized appreciation (depreciation) on investments			(1,258,543	)		2,777,855
Net increase (decrease) in net assets resulting from operations			(957,972	)		1,764,507
Distributions to shareholders
From net investment income
Institutional Shares			—			(113,788	)
Open Shares			—			(3,262	)
Net decrease in net assets resulting from distributions			—			(117,050	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			3,321,981			304,242
Open Shares			17,243			133,161
Net proceeds from reinvestment of distributions
Institutional Shares			—			112,953
Open Shares			—			2,813
Cost of shares redeemed
Institutional Shares			(226,605	)		(88,111	)
Open Shares			(43,871	)		(36,876	)
Net increase (decrease) in net assets from capital stock transactions			3,068,748			428,182
Redemption fees (Note 2(k))
Institutional Shares			1,144			—
Open Shares			—			26
Net increase in net assets from redemption fees			1,144			26
Total increase (decrease) in net assets			2,111,920			2,075,665
Net assets at beginning of period			8,764,096			6,688,431
Net assets at end of period*		$	10,876,016		$	8,764,096
* Includes undistributed (distributions in excess of) net investment income of		$	35,003		$	(18,745	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			982,317			936,319
Shares sold			381,269			44,457
Shares issued to shareholders from reinvestment of distributions			—			13,003
Shares redeemed			(24,736	)		(11,462	)
Net increase (decrease)			356,533			45,998
Shares outstanding at end of period			1,338,850			982,317
Open Shares
Shares outstanding at beginning of period			34,649			19,092
Shares sold			1,924			19,468
Shares issued to shareholders from reinvestment of distributions			—			321
Shares redeemed			(4,848	)		(4,232	)
Net increase (decrease)			(2,924	)		15,557
Shares outstanding at end of period			31,725			34,649

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

70Semi-Annual Report

Lazard U.S. Strategic Equity Portfolio							Lazard U.S. Mid Cap Equity Portfolio							Lazard U.S. Small-Mid Cap Equity Portfolio
Six Months Ended June 30, 2010 (unaudited)				Year Ended December 31, 2009			Six Months Ended June 30, 2010 (unaudited)				Year Ended December 31, 2009			Six Months Ended June 30, 2010 (unaudited)				Year Ended December 31, 2009
	$	270,482		$	802,047			$	414,505		$	1,448,793			$	(150,059	)	$	(103,747	)
		2,347,115			(7,129,841	)			19,799,766			(17,280,343	)			8,988,804			(1,444,661	)
		(9,319,052	)		23,468,149				(21,665,514	)		76,524,594				(11,127,385	)		26,073,943
		(6,701,455	)		17,140,355				(1,451,243	)		60,693,044				(2,288,640	)		24,525,535
		—			—				—			(1,061,800	)			—			—
		—			—				—			(362,964	)			—			—
		—			—				—			(1,424,764	)			—			—
		2,942,525			3,621,141				21,092,653			36,596,957				7,701,827			18,625,206
		2,238,682			3,948,509				8,003,050			13,677,026				3,813,678			7,627,394
		—			—				—			751,427				—			—
		—			—				—			339,321				—			—
		(4,477,053	)		(7,392,941	)			(51,733,718	)		(35,236,721	)			(2,730,404	)		(18,159,522	)
		(1,700,057	)		(4,187,168	)			(15,591,449	)		(30,418,809	)			(3,710,923	)		(4,480,404	)
		(995,903	)		(4,010,459	)			(38,229,464	)		(14,290,799	)			5,074,178			3,612,674
		8			—				1,219			3,650				464			—
		75			—				1,348			1,067				94			28
		83			—				2,567			4,717				558			28
		(7,697,275	)		13,129,896				(39,678,140	)		44,982,198				2,786,096			28,138,237
		75,097,303			61,967,407				213,004,278			168,022,080				75,572,889			47,434,652
	$	67,400,028		$	75,097,303			$	173,326,138		$	213,004,278			$	78,358,985		$	75,572,889
	$	1,072,502		$	802,020			$	466,308		$	51,803			$	(150,058	)	$	1
		8,247,044			8,746,920				13,891,697			13,826,282				4,750,537			4,863,965
		362,017			591,194				1,957,492			4,407,296				650,536			1,885,281
		—			—				—			72,480				—			—
		(557,104	)		(1,091,070	)			(4,705,146	)		(4,414,361	)			(233,505	)		(1,998,709	)
		(195,087	)		(499,876	)			(2,747,654	)		65,415				417,031			(113,428	)
		8,051,957			8,247,044				11,144,043			13,891,697				5,167,568			4,750,537
		1,114,686			1,148,843				6,852,067			8,699,296				1,689,218			1,406,771
		282,798			617,602				748,669			1,654,398				326,529			818,001
		—			—				—			32,976				—			—
		(211,025	)		(651,759	)			(1,473,301	)		(3,534,603	)			(321,108	)		(535,554	)
		71,773			(34,157	)			(724,632	)		(1,847,229	)			5,421			282,447
		1,186,459			1,114,686				6,127,435			6,852,067				1,694,639			1,689,218

Semi-Annual Report  71

	Lazard International Equity Portfolio
	Six Months Ended June 30, 2010 (unaudited)				Year Ended December 31, 2009
Increase (Decrease) in Net Assets
Operations
Net investment income		$	1,807,969			$	3,150,453
Net realized gain (loss) on investments and foreign currency			(2,574,375	)			(25,536,002	)
Net change in unrealized appreciation (depreciation) on investments and foreign currency			(16,731,158	)			54,145,089
Net increase (decrease) in net assets resulting from operations			(17,497,564	)			31,759,540
Distributions to shareholders
From net investment income
Institutional Shares			—				(50,545	)
Open Shares			—				—
Net decrease in net assets resulting from distributions			—				(50,545	)
Capital stock transactions
Net proceeds from sales
Institutional Shares			2,540,636				6,660,199
Open Shares			2,859,472				6,211,004
Net proceeds from reinvestment of distributions
Institutional Shares			—				35,632
Open Shares			—				—
Cost of shares redeemed
Institutional Shares			(16,111,265	)			(15,396,026	)
Open Shares			(2,269,781	)			(5,330,811	)
Net increase (decrease) in net assets from capital stock transactions			(12,980,938	)			(7,820,002	)
Redemption fees (Note 2(k))
Institutional Shares			62				947
Open Shares			29				—
Net increase (decrease) in net assets from redemption fees			91				947
Total increase (decrease) in net assets			(30,478,411	)			23,889,940
Net assets at beginning of period			158,589,645				134,699,705
Net assets at end of period*		$	128,111,234			$	158,589,645
* Includes undistributed net investment income of		$	5,034,502			$	3,226,533
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			10,584,664				11,420,948
Shares sold			200,841				607,053
Shares issued to shareholders from reinvestment of distributions			—				2,881
Shares redeemed			(1,257,136	)			(1,446,218	)
Net increase (decrease)			(1,056,295	)			(836,284	)
Shares outstanding at end of period			9,528,369				10,584,664
Open Shares
Shares outstanding at beginning of period			1,474,744				1,398,912
Shares sold			226,052				560,515
Shares issued to shareholders from reinvestment of distributions			—				—
Shares redeemed			(178,846	)			(484,683	)
Net increase (decrease)			47,206				75,832
Shares outstanding at end of period			1,521,950				1,474,744

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

72  Semi-Annual Report

Lazard International Equity Select Portfolio								Lazard International Strategic Equity Portfolio								Lazard International Small Cap Equity Portfolio
Six Months Ended June 30, 2010 (unaudited)				Year Ended December 31, 2009				Six Months Ended June 30, 2010 (unaudited)				Year Ended December 31, 2009				Six Months Ended June 30, 2010 (unaudited)				Year Ended December 31, 2009
	$	87,219			$	201,770			$	4,055,904			$	6,601,062			$	567,219			$	1,040,146
		(22,610	)			(2,579,559	)			6,133,278				(50,885,864	)			(2,681,883	)			(46,018,345	)
		(941,181	)			3,955,286				(45,614,533	)			115,551,293				(1,834,206	)			61,363,581
		(876,572	)			1,577,497				(35,425,351	)			71,266,491				(3,948,870	)			16,385,382
		—				(11,249	)			—				(6,008,173	)			—				—
		—				(2,723	)			—				(269,925	)			—				—
		—				(13,972	)			—				(6,278,098	)			—				—
		196,310				1,387,848				26,837,098				40,370,073				8,247,614				23,843,888
		324,414				918,356				10,754,331				12,171,444				1,237,553				8,784,586
		—				7,209				—				4,544,925				—				—
		—				2,505				—				264,695				—				—
		(1,649,725	)			(1,993,398	)			(10,278,953	)			(41,400,791	)			(8,921,676	)			(65,099,266	)
		(1,017,021	)			(3,143,891	)			(3,921,166	)			(9,150,357	)			(5,912,257	)			(20,446,760	)
		(2,146,022	)			(2,821,371	)			23,391,310				6,799,989				(5,348,766	)			(52,917,552	)
		—				313				24				191				16				413
		335				263				230				(2,084	)			5				2,454
		335				576				254				(1,893	)			21				2,867
		(3,022,259	)			(1,257,270	)			(12,033,787	)			71,786,489				(9,297,615	)			(36,529,303	)
		8,455,558				9,712,828				331,016,855				259,230,366				68,163,186				104,692,489
	$	5,433,299			$	8,455,558			$	318,983,068			$	331,016,855			$	58,865,571			$	68,163,186
	$	294,571			$	207,352			$	5,283,356			$	1,227,452			$	1,551,214			$	983,995
		509,472				604,238				33,103,967				32,709,101				6,021,391				15,560,787
		26,631				212,263				2,781,637				4,550,037				1,183,317				4,055,748
		—				985				—				484,282				—				—
		(221,278	)			(308,014	)			(1,074,387	)			(4,639,453	)			(1,312,457	)			(13,595,144	)
		(194,647	)			(94,766	)			1,707,250				394,866				(129,140	)			(9,539,396	)
		314,825				509,472				34,811,217				33,103,967				5,892,251				6,021,391
		586,579				912,853				2,061,818				1,814,586				4,168,917				6,237,024
		42,109				135,263				1,159,874				1,449,537				183,008				1,514,858
		—				341				—				28,037				—				—
		(137,778	)			(461,878	)			(431,596	)			(1,230,342	)			(877,094	)			(3,582,965	)
		(95,669	)			(326,274	)			728,278				247,232				(694,086	)			(2,068,107	)
		490,910				586,579				2,790,096				2,061,818				3,474,831				4,168,917

Semi-Annual Report   73

	Lazard Global Listed Infrastructure Portfolio
	Six Months Ended June 30, 2010 (unaudited)				Period Ended December 31, 2009**
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)		$	1,451,969			$	(4	)
Net realized gain (loss) on investments, foreign currency and forward currency contracts			6,646,053				—
Net change in unrealized appreciation (depreciation) on investments, foreign currency and forward currency contracts			(14,862,027	)			—
Net increase (decrease) in net assets resulting from operations			(6,764,005	)			(4	)
Distributions to shareholders
From net investment income
Institutional Shares			(949,651	)			—
Open Shares			(455	)			—
From net realized gains
Institutional Shares			—				—
Open Shares			—				—
Net decrease in net assets resulting from distributions			(950,106	)			—
Capital stock transactions
Net proceeds from sales
Institutional Shares			107,736,526				73,899
Open Shares			3,000				50,000
Net proceeds from reinvestment of distributions
Institutional Shares			948,169				—
Open Shares			455				—
Cost of shares redeemed
Institutional Shares			(13,670,711	)			—
Open Shares			—				—
Net increase (decrease) in net assets from capital stock transactions			95,017,439				123,899
Redemption fees (Note 2(k))
Institutional Shares			5				—
Open Shares			—				—
Net increase in net assets from redemption fees			5				—
Total increase (decrease) in net assets			87,303,333				123,895
Net assets at beginning of period			123,895				—
Net assets at end of period*		$	87,427,228			$	123,895
*  Includes undistributed (distributions in excess of) net investment income of		$	501,863			$	—
** Portfolio commenced operations on December 31, 2009.
† Portfolio commenced operations on May 28, 2010.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period			7,390				—
Shares sold			10,876,285				7,390
Shares issued to shareholders from reinvestment of distributions			98,189				—
Shares redeemed			(1,402,942	)			—
Net increase			9,571,532				7,390
Shares outstanding at end of period			9,578,922				7,390
Open Shares
Shares outstanding at beginning of period			5,000				—
Shares sold			300				5,000
Shares issued to shareholders from reinvestment of distributions			47				—
Shares redeemed			—				—
Net increase (decrease)			347				5,000
Shares outstanding at end of period			5,347				5,000

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

74  Semi-Annual Report

Lazard Emerging Markets Equity Portfolio								Lazard Developing Markets Equity Portfolio								Lazard Emerging Markets Equity Blend Portfolio
Six Months Ended June 30, 2010 (unaudited)				Year Ended December 31, 2009				Six Months Ended June 30, 2010 (unaudited)				Year Ended December 31, 2009				Period Ended June 30, 2010 (unaudited)†
	$	164,448,282			$	173,491,609			$	177,997			$	(73,007	)		$	753
		416,702,128				(1,134,986,477	)			8,489,151				4,740,733				19,124
		(1,108,575,304	)			4,905,051,593				(8,878,930	)			9,714,986				(30,647	)
		(527,424,894	)			3,943,556,725				(211,782	)			14,382,712				(10,770	)
		—				(213,098,743	)			—				(53,044	)			—
		(1,507	)			(75,965,459	)			—				(9,449	)			—
		—				—				—				(617,737	)			—
		—				—				—				(1,313,171	)			—
		(1,507	)			(289,064,202	)			—				(1,993,401	)			—
		2,629,020,637				3,728,730,269				7,091,457				6,734,603				1,205,500
		1,017,663,567				1,942,142,287				8,878,906				38,429,793				50,000
		(114	)			179,344,209				—				637,253				—
		538				68,872,759				—				1,304,978				—
		(999,906,971	)			(1,400,549,243	)			(2,143,496	)			(1,262,218	)			—
		(600,617,774	)			(628,483,832	)			(44,575,407	)			(2,158,324	)			—
		2,046,159,883				3,890,056,449				(30,748,540	)			43,686,085				1,255,500
		121,494				180,078				1,100				51				—
		102,300				240,241				1,032				5,416				—
		223,794				420,319				2,132				5,467				—
		1,518,957,276				7,544,969,291				(30,958,190	)			56,080,863				1,244,730
		11,975,994,614				4,431,025,323				62,977,619				6,896,756				—
	$	13,494,951,890			$	11,975,994,614			$	32,019,429			$	62,977,619			$	1,244,730
	$	43,205,246			$	(121,241,529	)		$	190,028			$	12,031			$	753
		471,812,807				303,003,714				1,517,818				999,421				—
		144,645,915				255,663,716				538,207				604,160				119,620
		(6	)			9,991,334				—				48,720				—
		(55,334,681	)			(96,845,957	)			(162,443	)			(134,483	)			—
		89,311,228				168,809,093				375,764				518,397				119,620
		561,124,035				471,812,807				1,893,582				1,517,818				119,620
		190,254,536				102,746,768				3,258,336				54,614				—
		54,929,723				127,649,425				673,325				3,300,183				5,000
		29				3,780,047				—				99,693				—
		(32,943,469	)			(43,921,704	)			(3,283,677	)			(196,154	)			—
		21,986,283				87,507,768				(2,610,352	)			3,203,722				5,000
		212,240,819				190,254,536				647,984				3,258,336				5,000

Semi-Annual Report  75

	Lazard U.S. High Yield Portfolio
	Six Months Ended June 30, 2010 (unaudited)			Year Ended December 31, 2009
Increase in Net Assets
Operations
Net investment income	$	3,611,546		$	5,648,000
Net realized gain (loss) on investments		1,068,284			(4,302,446	)
Net change in unrealized appreciation (depreciation) on investments		(1,422,284	)		19,030,597
Net increase in net assets resulting from operations		3,257,546			20,376,151
Distributions to shareholders
From net investment income
Institutional Shares		(3,028,733	)		(5,077,021	)
Open Shares		(582,942	)		(570,610	)
Net decrease in net assets resulting from distributions		(3,611,675	)		(5,647,631	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		14,663,851			59,926,907
Open Shares		19,788,460			6,119,172
Net proceeds from reinvestment of distributions
Institutional Shares		1,879,285			3,298,041
Open Shares		544,714			347,431
Cost of shares redeemed
Institutional Shares		(20,376,161	)		(22,988,509	)
Open Shares		(3,681,120	)		(7,231,937	)
Net increase in net assets from capital stock transactions		12,819,029			39,471,105
Redemption fees (Note 2(k))
Institutional Shares		1,765			6,353
Open Shares		768			5,462
Net increase in net assets from redemption fees		2,533			11,815
Total increase in net assets		12,467,433			54,211,440
Net assets at beginning of period		93,694,090			39,482,650
Net assets at end of period*	$	106,161,523		$	93,694,090
* Includes distributions in excess of net investment income of	$	(230,257	)	$	(230,128	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		18,619,657			9,073,796
Shares sold		3,138,619			14,172,786
Shares issued to shareholders from reinvestment of distributions		398,557			765,009
Shares redeemed		(4,337,188	)		(5,391,934	)
Net increase (decrease)		(800,012	)		9,545,861
Shares outstanding at end of period		17,819,645			18,619,657
Open Shares
Shares outstanding at beginning of period		1,295,343			1,376,829
Shares sold		4,188,061			1,471,742
Shares issued to shareholders from reinvestment of distributions		114,857			79,651
Shares redeemed		(781,366	)		(1,632,879	)
Net increase (decrease)		3,521,552			(81,486	)
Shares outstanding at end of period		4,816,895			1,295,343

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

76  Semi-Annual Report

	Lazard Capital Allocator Opportunistic Strategies Portfolio
	Six Months Ended June 30, 2010 (unaudited)			Year Ended December 31, 2009
Increase in (Decrease) Net Assets
Operations
Net investment income	$	722,547		$	2,803,446
Net realized gain (loss) on investments, swap agreements, foreign currency
and forward currency contracts		2,424,226			(19,863,801	)
Net change in unrealized appreciation (depreciation) on investments, swap agreements,
foreign currency and forward currency contracts		(12,238,490	)		50,755,183
Net increase (decrease) in net assets resulting from operations		(9,091,717	)		33,694,828
Distributions to shareholders
From net investment income
Institutional Shares		—			(2,690,734	)
Open Shares		—			(184,678	)
Net decrease in net assets resulting from distributions		—			(2,875,412	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		31,488,147			98,851,646
Open Shares		2,385,066			12,563,627
Net proceeds from reinvestment of distributions
Institutional Shares		—			1,515,440
Open Shares		—			65,857
Cost of shares redeemed
Institutional Shares		(25,825,471	)		(43,713,802	)
Open Shares		(12,488,876	)		(7,387,095	)
Net increase (decrease) in net assets from capital stock transactions		(4,441,134	)		61,895,673
Redemption fees (Note 2(k))
Institutional Shares		289			2,166
Open Shares		13			1,854
Net increase in net assets from redemption fees		302			4,020
Total increase (decrease) in net assets		(13,532,549	)		92,719,109
Net assets at beginning of period		212,795,056			120,075,947
Net assets at end of period*	$	199,262,507		$	212,795,056
* Includes undistributed net investment income of	$	743,095		$	20,548
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		22,278,416			15,043,527
Shares sold		3,557,638			12,450,610
Shares issued to shareholders from reinvestment of distributions		—			171,624
Shares redeemed		(2,977,094	)		(5,387,345	)
Net increase		580,544			7,234,889
Shares outstanding at end of period		22,858,960			22,278,416
Open Shares
Shares outstanding at beginning of period		1,914,353			1,264,077
Shares sold		272,059			1,555,062
Shares issued to shareholders from reinvestment of distributions		—			7,450
Shares redeemed		(1,440,238	)		(912,236	)
Net increase (decrease)		(1,168,179	)		650,276
Shares outstanding at end of period		746,174			1,914,353

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

Semi-Annual Report  77

The Lazard Funds, Inc. Financial Highlights

LAZARD U.S. EQUITY VALUE PORTFOLIO

	Six Months																				For the Period
Selected data for a share of capital	Ended				Year Ended																9/30/05* to
stock outstanding throughout each period	6/30/10†				12/31/09				12/31/08				12/31/07				12/31/06				12/31/05
Institutional Shares
Net asset value, beginning of period		$	8.62			$	7.00			$	11.25			$	11.73			$	10.02			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.05				0.12				0.18				0.17				0.18				0.03
Net realized and unrealized gain (loss)			(0.74	)			1.62				(4.26	)			0.05				2.33				0.02
Total from investment operations			(0.69	)			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)			—				—				—	(c)			—				—
Net asset value, end of period		$	7.93			$	8.62			$	7.00			$	11.25			$	11.73			$	10.02
Total Return (b)			–8.00	%			24.81	%			–36.18	%			1.65	%			25.23	%			0.48	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	10,623			$	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	%			1.00	%
Gross expenses (d)			2.83	%			3.44	%			3.21	%			3.56	%			112.90	%			388.31	%
Net investment income (d)			1.09	%			1.60	%			1.90	%			1.40	%			1.57	%			1.17	%
Portfolio turnover rate			38	%			62	%			97	%			83	%			95	%			13	%
	Six Months																				For the Period
Selected data for a share of capital	Ended				Year Ended																9/30/05* to
stock outstanding throughout each period	6/30/10†				12/31/09				12/31/08				12/31/07				12/31/06				12/31/05
Open Shares
Net asset value, beginning of period		$	8.67			$	7.04			$	11.31			$	11.77			$	10.02			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.03				0.09				0.15				0.13				0.12				0.02
Net realized and unrealized gain (loss)			(0.73	)			1.64				(4.28	)			0.06				2.37				0.02
Total from investment operations			(0.70	)			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		$	7.97			$	8.67			$	7.04			$	11.31			$	11.77			$	10.02
Total Return (b)			–8.07	%			24.49	%			–36.43	%			1.59	%			24.83	%			0.41	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	253			$	300			$	134			$	341			$	240			$	10
Ratios to average net assets:
Net expenses (d)			1.30	%			1.30	%			1.30	%			1.30	%			1.30	%			1.30	%
Gross expenses (d)			7.09	%			5.52	%			12.10	%			9.40	%			138.32	%			596.46	%
Net investment income (d)			0.79	%			1.15	%			1.56	%			1.02	%			1.05	%			0.86	%
Portfolio turnover rate			38	%			62	%			97	%			83	%			95	%			13	%

†	Unaudited.
*	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.

78Semi-Annual Report

LAZARD U.S. STRATEGIC EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended				Year Ended
stock outstanding throughout each period	6/30/10†				12/31/09				12/31/08				12/31/07				12/31/06				12/31/05
Institutional Shares
Net asset value, beginning of period		$	8.02			$	6.26			$	10.03			$	11.81			$	10.38			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.03				0.08				0.12				0.11				0.08				0.09
Net realized and unrealized gain (loss)			(0.75	)			1.68				(3.65	)			(0.04	)			1.73				0.41
Total from investment operations			(0.72	)			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)			—				—				—				—	(c)			—
Net asset value, end of period		$	7.30			$	8.02			$	6.26			$	10.03			$	11.81			$	10.38
Total Return (b)			–8.98	%			28.12	%			–35.43	%			0.33	%			17.44	%			4.99	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	58,752			$	66,153			$	54,749			$	88,242			$	117,194			$	15,085
Ratios to average net assets:
Net expenses (d)			1.05	%			1.05	%			1.05	%			0.98	%			1.05	%			1.16	%
Gross expenses (d)			1.06	%			1.09	%			1.06	%			0.98	%			1.35	%			13.80	%
Net investment income (d)			0.76	%			1.26	%			1.45	%			0.86	%			0.71	%			0.90	%
Portfolio turnover rate			31	%			76	%			82	%			58	%			82	%			53	%
	Six Months
Selected data for a share of capital	Ended				Year Ended
stock outstanding throughout each period	6/30/10†				12/31/09				12/31/08				12/31/07				12/31/06				12/31/05
Open Shares
Net asset value, beginning of period		$	8.02			$	6.28			$	10.05			$	11.83			$	10.39			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.02				0.07				0.10				0.06				—	(c)			0.06
Net realized and unrealized gain (loss)			(0.75	)			1.67				(3.65	)			(0.03	)			1.79				0.35
Total from investment operations			(0.73	)			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)			—				—				—	(c)			—				0.07
Net asset value, end of period		$	7.29			$	8.02			$	6.28			$	10.05			$	11.83			$	10.39
Total Return (b)			–9.10	%			27.71	%			–35.63	%			–0.07	%			17.20	%			4.79	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	8,648			$	8,945			$	7,218			$	11,558			$	11,836			$	234
Ratios to average net assets:
Net expenses (d)			1.35	%			1.35	%			1.35	%			1.35	%			1.35	%			1.50	%
Gross expenses (d)			1.43	%			1.39	%			1.51	%			1.40	%			7.38	%			33.06	%
Net investment income (d)			0.47	%			0.96	%			1.15	%			0.50	%			0.03	%			0.58	%
Portfolio turnover rate			31	%			76	%			82	%			58	%			82	%			53	%

†	Unaudited.
(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.

Semi-Annual Report  79

LAZARD U.S. MID CAP EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended				Year Ended
stock outstanding throughout each period	6/30/10†				12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of period		$	10.31		$	7.50		$	12.46		$	14.41		$	13.23		$	13.20
Income (loss) from investment operations:
Net investment income (a)			0.03			0.08			0.15			0.12			0.09			0.09
Net realized and unrealized gain (loss)			(0.25	)		2.81			(4.93	)		(0.51	)		1.88			1.07
Total from investment operations			(0.22	)		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)		—	(c)		—
Net asset value, end of period		$	10.09		$	10.31		$	7.50		$	12.46		$	14.41		$	13.23
Total Return (b)			–2.13	%		38.49	%		–38.33	%		–2.93	%		14.85	%		8.89	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	112,411		$	143,267		$	103,650		$	277,953		$	235,367		$	171,912
Ratios to average net assets:
Net expenses (d)			0.90	%		0.91	%		0.89	%		0.87	%		0.89	%		0.93	%
Gross expenses (d)			0.90	%		0.91	%		0.89	%		0.87	%		0.89	%		0.93	%
Net investment income (d)			0.49	%		0.90	%		1.41	%		0.81	%		0.66	%		0.67	%
Portfolio turnover rate			38	%		77	%		81	%		100	%		76	%		80	%

	Six Months
Selected data for a share of capital	Ended				Year Ended
stock outstanding throughout each period	6/30/10†				12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of period		$	10.18		$	7.40		$	12.29		$	14.23		$	13.07		$	13.06
Income (loss) from investment operations:
Net investment income (a)			0.01			0.05			0.13			0.09			0.05			0.05
Net realized and unrealized gain (loss)			(0.25	)		2.78			(4.87	)		(0.51	)		1.86			1.05
Total from investment operations			(0.24	)		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)		—	(c)
Net asset value, end of period		$	9.94		$	10.18		$	7.40		$	12.29		$	14.23		$	13.07
Total Return (b)			–2.36	%		38.26	%		–38.53	%		–3.17	%		14.57	%		8.53	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	60,915		$	69,737		$	64,372		$	158,062		$	80,410		$	54,370
Ratios to average net assets:
Net expenses (d)			1.16	%		1.17	%		1.15	%		1.13	%		1.18	%		1.23	%
Gross expenses (d)			1.16	%		1.17	%		1.15	%		1.13	%		1.18	%		1.23	%
Net investment income (d)			0.22	%		0.64	%		1.17	%		0.58	%		0.37	%		0.35	%
Portfolio turnover rate			38	%		77	%		81	%		100	%		76	%		80	%

†	Unaudited.
(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. 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.

80  Semi-Annual Report

LAZARD U.S. SMALL-MID CAP EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended				Year Ended
stock outstanding throughout each period	6/30/10†				12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of period		$	11.80		$	7.59		$	11.58		$	14.44		$	15.40		$	18.84
Income (loss) from investment operations:
Net investment income (loss) (a)			(0.02	)		(0.01	)		0.01			0.04			0.02			0.02
Net realized and unrealized gain (loss)			(0.30	)		4.22			(4.00	)		(0.87	)		2.60			0.76
Total from investment operations			(0.32	)		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)		—	(c)
Net asset value, end of period		$	11.48		$	11.80		$	7.59		$	11.58		$	14.44		$	15.40
Total Return (b)			–2.71	%		55.47	%		–34.46	%		–6.38	%		17.11	%		4.31	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	59,323		$	56,042		$	36,934		$	109,853		$	196,483		$	253,236
Ratios to average net assets:
Net expenses (d)			1.08	%		1.22	%		1.13	%		0.93	%		0.91	%		0.88	%
Gross expenses (d)			1.08	%		1.23	%		1.13	%		0.93	%		0.91	%		0.88	%
Net investment income (loss) (d)			–0.30	%		–0.12	%		0.08	%		0.24	%		0.10	%		0.10	%
Portfolio turnover rate			76	%		195	%		138	%		98	%		86	%		87	%

	Six Months
Selected data for a share of capital	Ended				Year Ended
stock outstanding throughout each period	6/30/10†					12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of period		$	11.56		$	7.46		$	11.43		$	14.27		$	15.29		$	18.78
Income (loss) from investment operations:
Net investment loss (a)			(0.04	)		(0.04	)		(0.03	)		(0.01	)		(0.03	)		(0.04	)
Net realized and unrealized gain (loss)			(0.29	)		4.14			(3.94	)		(0.84	)		2.58			0.75
Total from investment operations			(0.33	)		4.10			(3.97	)		(0.85	)		2.55			0.71
Less distributions from:
Net realized gains			—			—			—			(1.99	)		(3.57	)		(4.20	)
Total distributions			—			—			—			(1.99	)		(3.57	)		(4.20	)
Redemption fees			—	(c)		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of period		$	11.23		$	11.56		$	7.46		$	11.43		$	14.27		$	15.29
Total Return (b)			–2.85	%		54.96	%		–34.73	%		–6.60	%		16.77	%		3.93	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	19,036		$	19,531		$	10,500		$	25,203		$	35,627		$	37,057
Ratios to average net assets:
Net expenses (d)			1.37	%		1.51	%		1.49	%		1.25	%		1.23	%		1.19	%
Gross expenses (d)			1.37	%		1.52	%		1.49	%		1.25	%		1.23	%		1.19	%
Net investment loss (d)			–0.60	%		–0.40	%		–0.26	%		–0.07	%		–0.21	%		–0.21	%
Portfolio turnover rate			76	%		195	%		138	%		98	%		86	%		87	%

†	Unaudited.
(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. 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.

Semi-Annual Report  81

LAZARD INTERNATIONAL EQUITY PORTFOLIO

	Six Months
Selected data for a share of capital	Ended				Year Ended
stock outstanding throughout each period	6/30/10†				12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of period		$	13.14		$	10.50		$	17.55		$	16.31		$	14.00		$	12.91
Income (loss) from investment operations:
Net investment income (a)			0.16			0.26			0.36			0.36			0.33			0.26
Net realized and unrealized gain (loss)			(1.72	)		2.38			(7.00	)		1.42			2.83			1.16
Total from investment operations			(1.56	)		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)		—	(c)
Net asset value, end of period		$	11.58		$	13.14		$	10.50		$	17.55		$	16.31		$	14.00
Total Return (b)			–11.87	%		25.19	%		–37.75	%		10.96	%		22.92	%		11.25	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	110,378		$	139,070		$	119,870		$	335,323		$	701,145		$	1,035,346
Ratios to average net assets:
Net expenses (d)			0.97	%		0.99	%		0.93	%		0.89	%		0.84	%		0.89	%
Gross expenses (d)			0.97	%		0.99	%		0.93	%		0.89	%		0.84	%		0.89	%
Net investment income (d)			2.50	%		2.33	%		2.47	%		2.08	%		2.14	%		2.03	%
Portfolio turnover rate			24	%		66	%		44	%		50	%		68	%		60	%

	Six Months
Selected data for a share of capital	Ended				Year Ended
stock outstanding throughout each period	6/30/10†				12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of period		$	13.24		$	10.60		$	17.69		$	16.40		$	14.03		$	12.94
Income (loss) from investment operations:
Net investment income (a)			0.14			0.22			0.31			0.32			0.25			0.23
Net realized and unrealized gain (loss)			(1.73	)		2.42			(7.04	)		1.41			2.87			1.16
Total from investment operations			(1.59	)		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)		—	(c)
Net asset value, end of period		$	11.65		$	13.24		$	10.60		$	17.69		$	16.40		$	14.03
Total Return (b)			–12.01	%		24.91	%		–37.98	%		10.57	%		22.59	%		10.93	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	17,733		$	19,520		$	14,829		$	32,449		$	49,657		$	48,770
Ratios to average net assets:
Net expenses (d)			1.28	%		1.27	%		1.28	%		1.19	%		1.15	%		1.18	%
Gross expenses (d)			1.28	%		1.27	%		1.28	%		1.19	%		1.15	%		1.18	%
Net investment income (d)			2.25	%		1.98	%		2.16	%		1.89	%		1.63	%		1.78	%
Portfolio turnover rate			24	%		66	%		44	%		50	%		68	%		60	%

†	Unaudited.
(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. 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.

82  Semi-Annual Report

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

	Six Months Ended 6/30/10†
Selected data for a share of capital stock outstanding throughout each period					Year Ended
					12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of period		$	7.70		$	6.39		$	11.78		$	13.07		$	11.73		$	11.25
Income (loss) from investment operations:
Net investment income (a)			0.09			0.17			0.30			0.22			0.25			0.18
Net realized and unrealized gain (loss)			(1.05	)		1.16			(4.73	)		0.97			2.43			0.82
Total from investment operations			(0.96	)		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 period		$	6.74		$	7.70		$	6.39		$	11.78		$	13.07		$	11.73
Total Return (b)			–12.47	%		20.86	%		–38.74	%		9.25	%		23.01	%		8.90	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	2,122		$	3,925		$	3,860		$	12,103		$	16,677		$	12,262
Ratios to average net assets:
Net expenses (d)			1.15	%		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses (d)			4.25	%		3.46	%		2.24	%		1.67	%		1.85	%		1.97	%
Net investment income (d)			2.49	%		2.52	%		3.06	%		1.58	%		1.90	%		1.55	%
Portfolio turnover rate			55	%		67	%		52	%		50	%		40	%		33	%

	Six Months Ended 6/30/10†
Selected data for a share of capital stock outstanding throughout each period					Year Ended
					12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of period		$	7.72		$	6.41		$	11.81		$	13.10		$	11.75		$	11.28
Income (loss) from investment operations:
Net investment income (a)			0.08			0.14			0.26			0.16			0.21			0.12
Net realized and unrealized gain (loss)			(1.05	)		1.17			(4.73	)		0.99			2.44			0.83
Total from investment operations			(0.97	)		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)		—	(c)
Net asset value, end of period		$	6.75		$	7.72		$	6.41		$	11.81		$	13.10		$	11.75
Total Return (b)			–12.56	%		20.49	%		–39.00	%		8.92	%		22.72	%		8.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	3,312		$	4,530		$	5,853		$	13,916		$	12,545		$	10,026
Ratios to average net assets:
Net expenses (d)			1.45	%		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Gross expenses (d)			4.49	%		3.62	%		2.47	%		1.95	%		2.13	%		2.28	%
Net investment income (d)			2.25	%		2.11	%		2.67	%		1.21	%		1.65	%		1.05	%
Portfolio turnover rate			55	%		67	%		52	%		50	%		40	%		33	%

†	Unaudited.
(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.

Semi-Annual Report  83

LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Six Months Ended 6/30/10†				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		$	9.41		$	7.51		$	12.92		$	12.66		$	10.79			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.11			0.20			0.26			0.23			0.19				—	(c)
Net realized and unrealized gain (loss)			(1.04	)		1.88			(5.43	)		1.36			2.64				0.79
Total from investment operations			(0.93	)		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)			—	(c)
Net asset value, end of period		$	8.48		$	9.41		$	7.51		$	12.92		$	12.66			$	10.79
Total Return (b)			–9.88	%		27.76	%		–39.98	%		12.88	%		26.22	%			7.90	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	295,301		$	311,570		$	245,604		$	418,584		$	343,931			$	135,690
Ratios to average net assets:
Net expenses (d)			0.89	%		0.91	%		0.90	%		0.88	%		0.94	%			1.46	%
Gross expenses (d)			0.89	%		0.91	%		0.90	%		0.88	%		0.94	%			1.46	%
Net investment income (loss) (d)			2.37	%		2.42	%		2.48	%		1.70	%		1.57	%			–0.20	%
Portfolio turnover rate			26	%		129	%		72	%		84	%		68	%			12	%

Selected data for a share of capital stock outstanding throughout each period	Six Months Ended 6/30/10†				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		$	9.43		$	7.51		$	12.90		$	12.64			$	11.49
Income (loss) from investment operations:
Net investment income (a)			0.10			0.16			0.23			0.17				0.12
Net realized and unrealized gain (loss)			(1.04	)		1.90			(5.42	)		1.37				1.93
Total from investment operations			(0.94	)		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)		—				—	(c)
Net asset value, end of period		$	8.49		$	9.43		$	7.51		$	12.90			$	12.64
Total Return (b)			–9.97	%		27.38	%		–40.18	%		12.37	%			17.90	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	23,682		$	19,446		$	13,627		$	16,342			$	10,669
Ratios to average net assets:
Net expenses (d)			1.20	%		1.21	%		1.24	%		1.28	%			1.45	%
Gross expenses (d)			1.20	%		1.21	%		1.24	%		1.28	%			1.63	%
Net investment income (d)			2.21	%		1.98	%		2.23	%		1.29	%			1.10	%
Portfolio turnover rate			26	%		129	%		72	%		84	%			68	%

†	Unaudited.
*	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.

84  Semi-Annual Report

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Six Months Ended 6/30/10†				Year Ended
					12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of period		$	6.68		$	4.80		$	10.49		$	17.80		$	17.10		$	19.24
Income (loss) from investment operations:
Net investment income (a)			0.06			0.08			0.15			0.27			0.22			0.24
Net realized and unrealized gain (loss)			(0.46	)		1.80			(5.19	)		(1.20	)		4.16			2.45
Total from investment operations			(0.40	)		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)		—	(c)
Net asset value, end of period		$	6.28		$	6.68		$	4.80		$	10.49		$	17.80		$	17.10
Total Return (b)			–5.99	%		39.17	%		–49.84	%		–4.61	%		26.31	%		14.77	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	37,020		$	40,243		$	74,640		$	129,725		$	698,166		$	582,909
Ratios to average net assets:
Net expenses (d)			1.13	%		1.17	%		0.98	%		0.91	%		0.86	%		0.93	%
Gross expenses (d)			1.27	%		1.21	%		0.98	%		0.91	%		0.86	%		0.93	%
Net investment income (d)			1.80	%		1.55	%		1.81	%		1.48	%		1.20	%		1.24	%
Portfolio turnover rate			23	%		51	%		61	%		59	%		49	%		33	%

Selected data for a share of capital stock outstanding throughout each period	Six Months Ended 6/30/10†				Year Ended
					12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of period		$	6.70		$	4.82		$	10.51		$	17.77		$	17.09		$	19.22
Income (loss) from investment operations:
Net investment income (a)			0.05			0.07			0.13			0.21			0.17			0.18
Net realized and unrealized gain (loss)			(0.46	)		1.81			(5.20	)		(1.17	)		4.13			2.45
Total from investment operations			(0.41	)		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)		—	(c)		0.01
Net asset value, end of period		$	6.29		$	6.70		$	4.82		$	10.51		$	17.77		$	17.09
Total Return (b)			–6.12	%		39.00	%		–50.02	%		–4.79	%		25.83	%		14.47	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	21,846		$	27,920		$	30,052		$	89,779		$	137,358		$	62,020
Ratios to average net assets:
Net expenses (d)			1.43	%		1.43	%		1.31	%		1.20	%		1.19	%		1.27	%
Gross expenses (d)			1.54	%		1.48	%		1.31	%		1.20	%		1.19	%		1.27	%
Net investment income (d)			1.47	%		1.28	%		1.56	%		1.17	%		0.89	%		0.93	%
Portfolio turnover rate			23	%		51	%		61	%		59	%		49	%		33	%

†	Unaudited.
(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.

Semi-Annual Report  85

LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Six Months Ended 6/30/10†				Period Ended 12/31/09*
Institutional Shares
Net asset value, beginning of period		$	10.00			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.18				—	(c)
Net realized and unrealized loss			(0.96	)			—
Total from investment operations			(0.78	)			—	(c)
Less distributions from:
Net investment income			(0.10	)			—
Total distributions			(0.10	)			—
Redemption fees			—	(c)			—
Net asset value, end of period		$	9.12			$	10.00
Total Return (b)			–7.85	%			0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	87,378			$	74
Ratios to average net assets:
Net expenses (d)			1.30	%			1.30	%
Gross expenses (d)			1.37	%			1,825.00	%(e)
Net investment income (loss) (d)			3.69	%			–1.30	%
Portfolio turnover rate			19	%			0	%
Selected data for a share of capital stock outstanding throughout each period	Six Months Ended 6/30/10†				Period Ended 12/31/09*
Open Shares
Net asset value, beginning of period		$	10.00			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.15				—	(c)
Net realized and unrealized loss			(0.94	)			—
Total from investment operations			(0.79	)			—	(c)
Less distributions from:
Net investment income			(0.09	)			—
Total distributions			(0.09	)			—
Net asset value, end of period		$	9.12			$	10.00
Total Return (b)			–7.99	%			0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	49			$	50
Ratios to average net assets:
Net expenses (d)			1.60	%			1.60	%
Gross expenses (d)			19.41	%			1,825.00	%(e)
Net investment income (loss) (d)			3.16	%			–1.60	%
Portfolio turnover rate			19	%			0	%

†	Unaudited.
*	Portfolio commenced operations on December 31, 2009.
(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. 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.
(e)	Gross expense 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.

86  Semi-Annual Report

LAZARD EMERGING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Six Months Ended			Year Ended
	6/30/10†			12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Institutional Shares
Net asset value, beginning of period	$	18.01		$	10.88		$	23.88		$	20.60		$	17.84		$	13.98
Income (loss) from investment operations:
Net investment income (a)		0.24			0.35			0.61			0.36			0.33			0.29
Net realized and unrealized gain (loss)		(0.86	)		7.24			(11.78	)		6.41			4.98			5.42
Total from investment operations		(0.62	)		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)		—	(c)
Net asset value, end of period	$	17.39		$	18.01		$	10.88		$	23.88		$	20.60		$	17.84
Total Return (b)		–3.44	%		69.82	%		–47.88	%		33.05	%		30.32	%		41.40	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	9,755,536		$	8,497,341		$	3,295,983		$	5,270,497		$	2,744,753		$	1,413,671
Ratios to average net assets:
Net expenses (d)		1.12	%		1.15	%		1.17	%		1.20	%		1.20	%		1.27	%(e)
Gross expenses (d)		1.12	%		1.15	%		1.17	%		1.20	%		1.20	%		1.28	%
Net investment income (d)		2.64	%		2.40	%		3.16	%		1.51	%		1.67	%		1.82	%
Portfolio turnover rate		13	%		49	%		43	%		53	%		46	%		48	%
Selected data for a share of capital stock outstanding throughout each period	Six Months Ended			Year Ended
	6/30/10†			12/31/09			12/31/08			12/31/07			12/31/06			12/31/05
Open Shares
Net asset value, beginning of period	$	18.28		$	11.05		$	24.17		$	20.82		$	17.99		$	14.06
Income (loss) from investment operations:
Net investment income (a)		0.21			0.29			0.52			0.29			0.26			0.20
Net realized and unrealized gain (loss)		(0.87	)		7.35			(11.87	)		6.47			5.03			5.51
Total from investment operations		(0.66	)		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)		—	(c)		0.01			—	(c)		0.03
Net asset value, end of period	$	17.62		$	18.28		$	11.05		$	24.17		$	20.82		$	17.99
Total Return (b)		–3.61	%		69.14	%		–48.09	%		32.71	%		29.93	%		41.31	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	3,739,416		$	3,478,654		$	1,135,042		$	1,467,458		$	441,673		$	195,944
Ratios to average net assets:
Net expenses (d)		1.48	%		1.55	%		1.53	%(e)		1.47	%(e)		1.54	%		1.59	%
Gross expenses (d)		1.48	%		1.55	%		1.54	%		1.48	%		1.54	%		1.59	%
Net investment income (d)		2.27	%		1.94	%		2.72	%		1.19	%		1.30	%		1.21	%
Portfolio turnover rate		13	%		49	%		43	%		53	%		46	%		48	%

†	Unaudited.
(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. 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.
(e)	The Portfolio’s 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.

Semi-Annual Report  87

LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital    stock outstanding throughout each period	Six Months Ended 6/30/10†				Year Ended 12/31/09				For the Period 9/30/08* to 12/31/08
Institutional Shares
Net asset value, beginning of period		$	13.18			$	6.54			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.07				0.01				0.01
Net realized and unrealized gain (loss)			(0.65	)			7.09				(3.46	)
Total from investment operations			(0.58	)			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)			—	(c)			—
Net asset value, end of period		$	12.60			$	13.18			$	6.54
Total Return (b)			–4.40	%			108.53	%			–34.54	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	23,863			$	20,002			$	6,539
Ratios to average net assets:
Net expenses (d)			1.30	%			1.30	%			1.30	%
Gross expenses (d)			1.67	%			2.81	%			11.98	%
Net investment income (d)			1.15	%			0.07	%			0.34	%
Portfolio turnover rate			56	%			96	%			72	%
Selected data for a share of capital     stock outstanding throughout each period	Six Months Ended 6/30/10†				Year Ended 12/31/09				For the Period 9/30/08* to 12/31/08
Open Shares
Net asset value, beginning of period		$	13.19			$	6.55			$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)			0.02				(0.08	)			—	(c)
Net realized and unrealized gain (loss)			(0.62	)			7.13				(3.45	)
Total from investment operations			(0.60	)			7.05				(3.45	)
Less distributions from:
Net investment income			—				—	(c)			—
Net realized gains			—				(0.42	)			—
Total distributions			—				(0.42	)			—
Redemption fees			—	(c)			0.01				—
Net asset value, end of period		$	12.59			$	13.19			$	6.55
Total Return (b)			–4.55	%			108.17	%			–34.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	8,156			$	42,975			$	357
Ratios to average net assets:
Net expenses (d)			1.60	%			1.60	%			1.60	%
Gross expenses (d)			1.76	%			2.54	%			28.95	%
Net investment income (loss) (d)			0.33	%			–0.63	%			–0.09	%
Portfolio turnover rate			56	%			96	%			72	%

†	Unaudited.
*	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.

88  Semi-Annual Report

LAZARD EMERGING MARKETS EQUITY BLEND PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 5/28/10* to 6/30/10†
Institutional Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.01
Net realized and unrealized loss			(0.02	)
Total from investment operations			(0.01	)
Net asset value, end of period		$	9.99
Total Return (b)			–0.10	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	1,195
Ratios to average net assets:
Net expenses (c)			1.35	%
Gross expenses (c)			36.45	%
Net investment income (c)			0.82	%
Portfolio turnover rate			81	%
Selected data for a share of capital stock outstanding throughout the period	For the Period 5/28/10* to 6/30/10†
Open Shares
Net asset value, beginning of period		$	10.00
Income (loss) from investment operations:
Net investment income (a)			—	(d)
Net realized and unrealized loss			(0.01	)
Total from investment operations			(0.01	)
Net asset value, end of period		$	9.99
Total Return (b)			–0.10	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	50
Ratios to average net assets:
Net expenses (c)			1.65	%
Gross expenses (c)			46.89	%
Net investment income (c)			0.52	%
Portfolio turnover rate			81	%

†	Unaudited.
*	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)	Annualized for a period of less than one year.
(d)	Amount is less than $0.01 per share.
The accompanying notes are an integral part of these financial statements.

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LAZARD U.S. HIGH YIELD PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Six Months Ended				Year Ended
	6/30/10†				12/31/09				12/31/08				12/31/07				12/31/06				12/31/05
Institutional Shares
Net asset value, beginning of period		$	4.70			$	3.78			$	5.15			$	5.36			$	5.27			$	5.47
Income (loss) from investment operations:
Net investment income (a)			0.18				0.34				0.38				0.40				0.40				0.42
Net realized and unrealized gain (loss)			(0.02	)			0.92				(1.37	)			(0.21	)			0.09				(0.19	)
Total from investment operations			0.16				1.26				(0.99	)			0.19				0.49				0.23
Less distributions from:
Net investment income			(0.18	)			(0.34	)			(0.38	)			(0.40	)			(0.40	)			(0.43	)
Total distributions			(0.18	)			(0.34	)			(0.38	)			(0.40	)			(0.40	)			(0.43	)
Redemption fees			—	(c)			—	(c)			—	(c)			—	(c)			—				—
Net asset value, end of period		$	4.68			$	4.70			$	3.78			$	5.15			$	5.36			$	5.27
Total Return (b)			3.37	%			34.66	%			–20.24	%			3.63	%			9.71	%			4.33	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	83,484			$	87,568			$	34,262			$	56,278			$	68,452			$	75,100
Ratios to average net assets:
Net expenses (d)			0.55	%			0.55	%			0.55	%			0.55	%			0.55	%			0.55	%
Gross expenses (d)			0.81	%			0.89	%			1.00	%			0.90	%			0.90	%			0.86	%
Net investment income (d)			7.56	%			7.96	%			8.10	%			7.56	%			7.61	%			7.89	%
Portfolio turnover rate			16	%			17	%			33	%			20	%			29	%			22	%
Selected data for a share of capital stock outstanding throughout each period	Six Months Ended				Year Ended
	6/30/10†				12/31/09				12/31/08				12/31/07				12/31/06				12/31/05
Open Shares
Net asset value, beginning of period		$	4.73			$	3.79			$	5.17			$	5.37			$	5.29			$	5.48
Income (loss) from investment operations:
Net investment income (a)			0.17				0.33				0.37				0.39				0.39				0.40
Net realized and unrealized gain (loss)			(0.02	)			0.94				(1.38	)			(0.21	)			0.08				(0.19	)
Total from investment operations			0.15				1.27				(1.01	)			0.18				0.47				0.21
Less distributions from:
Net investment income			(0.17	)			(0.33	)			(0.37	)			(0.39	)			(0.39	)			(0.41	)
Total distributions			(0.17	)			(0.33	)			(0.37	)			(0.39	)			(0.39	)			(0.41	)
Redemption fees			—	(c)			—	(c)			—	(c)			0.01				—				0.01
Net asset value, end of period		$	4.71			$	4.73			$	3.79			$	5.17			$	5.37			$	5.29
Total Return (b)			3.22	%			34.40	%			–20.35	%			3.53	%			9.18	%			4.22	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	22,678			$	6,126			$	5,220			$	1,776			$	2,179			$	2,986
Ratios to average net assets:
Net expenses (d)			0.85	%			0.85	%			0.85	%			0.85	%			0.85	%			0.85	%
Gross expenses (d)			1.13	%			1.21	%			1.74	%			2.14	%			2.12	%			1.78	%
Net investment income (d)			7.24	%			7.74	%			7.89	%			7.24	%			7.29	%			7.47	%
Portfolio turnover rate			16	%			17	%			33	%			20	%			29	%			22	%

†	Unaudited.
(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.

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LAZARD CAPITAL ALLOCATOR OPPORTUNISTIC STRATEGIES PORTFOLIO

	Six Months								For the Period
Selected data for a share of capital	Ended				Year Ended				3/26/08* to
stock outstanding throughout each period	6/30/10†				12/31/09				12/31/08
Institutional Shares
Net asset value, beginning of period		$	8.80			$	7.36			$	10.00
Income (loss) from investment operations:
Net investment income (a)			0.03				0.14				0.21
Net realized and unrealized gain (loss)			(0.39	)			1.42				(2.59	)
Total from investment operations			(0.36	)			1.56				(2.38	)
Less distributions from:
Net investment income			—				(0.12	)			(0.26	)
Total distributions			—				(0.12	)			(0.26	)
Redemption fees			—	(c)			—	(c)			—	(c)
Net asset value, end of period		$	8.44			$	8.80			$	7.36
Total Return (b)			–4.09	%			21.21	%			–23.64	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	192,969			$	195,939			$	110,757
Ratios to average net assets:
Net expenses (d)			1.02	%			1.02	%			1.02	%
Gross expenses (d)			1.13	%			1.16	%			1.27	%
Net investment income (d)			0.71	%			1.72	%			3.01	%
Portfolio turnover rate			79	%			113	%			94	%
Selected data for a share of capital stock outstanding throughout each period	Six Months								For the Period
	Ended				Year Ended				3/31/08* to
	6/30/10†				12/31/09				12/31/08
Open Shares
Net asset value, beginning of period		$	8.80			$	7.37			$	9.95
Income (loss) from investment operations:
Net investment income (a)			0.01				0.12				0.30
Net realized and unrealized gain (loss)			(0.38	)			1.41				(2.64	)
Total from investment operations			(0.37	)			1.53				(2.34	)
Less distributions from:
Net investment income			—				(0.10	)			(0.24	)
Total distributions			—				(0.10	)			(0.24	)
Redemption fees			—	(c)			—	(c)			—	(c)
Net asset value, end of period		$	8.43			$	8.80			$	7.37
Total Return (b)			–4.09	%			20.71	%			–23.44	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)		$	6,294			$	16,856			$	9,319
Ratios to average net assets:
Net expenses (d)			1.32	%			1.32	%			1.32	%
Gross expenses (d)			1.48	%			1.44	%			1.93	%
Net investment income (d)			0.21	%			1.44	%			4.68	%
Portfolio turnover rate			79	%			113	%			94	%

†	Unaudited.
*	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.

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   The Lazard Funds, Inc. Notes to Financial Statements June 30, 2010 (unaudited)

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 fourteen active 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, Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio (commenced investment operations on May 28, 2010), 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). Swap agreements on equity assets are valued at the equity basket price as of the close of regular trading on the NYSE on each valuation date. 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

92Semi-Annual Report

used by other investment companies to calculate their portfolios’ net asset values.

(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 period ended June 30, 2010, 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) 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.

(e) 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.

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.

None of the Portfolios in the Fund traded in options during the period ended June 30, 2010.

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(f) Swap Agreements—Swap agreements on equity assets involve commitments to pay interest in exchange for an equity basket return. The counterparty pays out the total return of the basket of equity securities and, in return, receives a regular stream of payments, based on an agreed-upon interest rate. To the extent the total return of the equity basket underlying the transaction exceeds (or falls short of) the offsetting interest rate obligation, the Portfolios will receive a payment from (or make a payment to) the counterparty.

Swap agreements are marked to market daily based upon the aggregate equity basket price, and the change in value, if any, is recorded as an unrealized appreciation (depreciation) on swap agreements in the Portfolios’ accompanying Statements of Assets and Liabilities.

For the period ended June 30, 2010, only Capital Allocator Opportunistic Strategies Portfolio traded in swap agreements.

(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 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

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

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 (2006-2008), or expected to be taken in the Fund’s 2009 or 2010 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 the 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.

(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

94  Semi-Annual Report

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
Emerging Markets Equity Blend			1.05
U.S. High Yield			0.55
Capital Allocator Opportunistic Strategies			1.00
The Investment Manager has voluntarily agreed to reduce its fees and, if necessary, reimburse the 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
Emerging Markets Equity Blend	1.35		1.65
U.S. High Yield	0.55		0.85
Capital Allocator Opportunistic Strategies	1.02		1.32

During the period ended June 30, 2010, 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		$	78,871		$	8,396
U.S. Strategic Equity			2,122			3,524
International Equity Select			51,533			62,035
International Small Cap Equity			29,832			13,762
Global Listed Infrastructure			27,423			4,560
Developing Markets Equity			39,351			27,193
Emerging Markets Equity Blend			29,847			1,835
U.S. High Yield			105,517			22,322
Capital Allocator Opportunistic Strategies			109,262			11,455

Semi-Annual Report  95

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 Emerging Markets Equity Blend Portfolios until each respective Portfolio’s net assets reach $25 million.

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 ($80,000 effective July 1, 2010), plus $4,000 ($5,000 effective July 1, 2010) per meeting attended in person ($1,500 per meeting, including special Board or committee meetings, 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, with the Fund, 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 ($5,000 effective July 1, 2010) for in-person attendance at special meetings not held in conjunction with a regular Board meet-

ing, 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.

5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments) for the period ended June 30, 2010 were as follows:

Portfolio	Purchases		Sales
U.S. Equity Value	$	6,786,182	$	3,709,858
U.S. Strategic Equity		22,413,323		23,172,808
U.S. Mid Cap Equity		76,320,169		114,034,026
U.S. Small-Mid Cap Equity		63,973,337		58,074,078
International Equity		33,115,293		42,326,940
International Equity Select		3,935,995		4,417,112
International Strategic Equity		109,335,691		86,686,270
International Small Cap Equity		14,963,399		21,339,503
Global Listed Infrastructure		113,800,985		13,136,257
Emerging Markets Equity		3,826,398,731		1,669,364,751
Developing Markets Equity		28,807,711		57,624,666
Emerging Markets Equity Blend		1,902,604		724,155
U.S. High Yield		29,857,641		14,976,911
Capital Allocator Opportunistic
Strategies		175,955,666		163,962,354

For the period ended June 30, 2010, 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 the higher of the Federal Funds rate or Overnight LIBOR rate plus 1.25%, on an annualized basis. Under the Agreement, the Fund has also agreed to pay a 0.15% per annum fee on the unused portion of the commitment, payable quarterly in arrears. During the period ended June 30, 2010, the Fund had borrowings under the Agreement as follows:

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Portfolio	Average Daily Loan Balance*		Maximum Daily Loan Outstanding		Weighted Average Interest Rate			Number of Days Borrowings Were Outstanding
U.S. Strategic Equity	$	250,000	$	300,000		1.42	%	2
U.S. Mid Cap Equity		5,200,000		5,200,000		1.49		4
International Equity		5,800,000		5,800,000		1.47		4
International Equity Select		192,727		430,000		1.50		22
International Small Cap Equity		1,131,471		4,100,000		1.44		17
Developing Markets Equity		2,985,625		6,575,000		1.52		24
U.S. High Yield		450,000		450,000		1.43		1
Capital Allocator Opportunistic Strategies		3,540,000		4,140,000		1.55		6

* 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 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 methodology used for valuing securities are not necessarily an indication of the risks associated with investing in these securities.

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The following tables summarize the valuation of the Portfolios’ investments by each fair value hierarchy level as of June 30, 2010:

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 June 30, 2010
U.S. Equity Value Portfolio
Common Stocks	$	10,772,951	$	—			$	—	$	10,772,951
Short-Term Investment		—		255,471				—		255,471
Total	$	10,772,951	$	255,471			$	—	$	11,028,422
U.S. Strategic Equity Portfolio
Common Stocks	$	66,903,145	$	—			$	—	$	66,903,145
Short-Term Investment		—		694,506				—		694,506
Total	$	66,903,145	$	694,506			$	—	$	67,597,651
U.S. Mid Cap Equity Portfolio
Common Stocks	$	170,221,297	$	—			$	—	$	170,221,297
Short-Term Investment		—		2,236,062				—		2,236,062
Total	$	170,221,297	$	2,236,062			$	—	$	172,457,359
U.S. Small-Mid Cap Equity Portfolio
Common Stocks	$	75,544,677	$	—			$	—	$	75,544,677
Repurchase Agreement		—		3,827,000				—		3,827,000
Total	$	75,544,677	$	3,827,000			$	—	$	79,371,677
International Equity Portfolio
Common Stocks	$	10,091,943	$	114,704,079			$	—	$	124,796,022
Repurchase Agreement		—		2,438,000				—		2,438,000
Total	$	10,091,943	$	117,142,079			$	—	$	127,234,022
International Equity Select Portfolio
Common Stocks	$	835,552	$	4,469,698			$	—	$	5,305,250
Short-Term Investment		—		105,763				—		105,763
Total	$	835,552	$	4,575,461			$	—	$	5,411,013
International Strategic Equity Portfolio
Common Stocks	$	4,208,972	$	295,121,858			$	—	$	299,330,830
Preferred Stock		6,250,387		—				—		6,250,387
Short-Term Investment		—		9,564,667				—		9,564,667
Total	$	10,459,359	$	304,686,525			$	—	$	315,145,884
International Small Cap Equity Portfolio
Common Stocks	$	727,079	$	55,817,217			$	—	$	56,544,296
Preferred Stock		—		806,987				—		806,987
Short-Term Investment		—		931,802				—		931,802
Total	$	727,079	$	57,556,006			$	—	$	58,283,085
Global Listed Infrastructure Portfolio
Assets:
Common Stocks	$	15,754,763	$	70,900,573			$	—	$	86,655,336
Short-Term Investment		—		2,008,506				—		2,008,506
Other Financial Instruments*
Forward Currency Contracts		—		22,769				—		22,769
Total	$	15,754,763	$	72,931,848			$	—	$	88,686,611
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(1,481,295	)		$	—	$	(1,481,295	)

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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 June 30, 2010
Emerging Markets Equity Portfolio
Common Stocks	$	4,495,939,310	$	7,901,929,291			$	—	$	12,397,868,601
Preferred Stocks		517,188,098		—				—		517,188,098
Short-Term Investment		—		511,675,597				—		511,675,597
Total	$	5,013,127,408	$	8,413,604,888			$	—	$	13,426,732,296
Developing Markets Equity Portfolio
Common Stocks	$	12,794,082	$	17,673,469			$	—	$	30,467,551
Preferred Stock		313,684		—				—		313,684
Short-Term Investment		—		1,498,040				—		1,498,040
Total	$	13,107,766	$	19,171,509			$	—	$	32,279,275
Emerging Markets Equity Blend Portfolio
Common Stocks	$	617,252	$	533,231			$	—	$	1,150,483
Preferred Stock		18,924		—				—		18,924
Short-Term Investment		—		93,333				—		93,333
Total	$	636,176	$	626,564			$	—	$	1,262,740
U.S. High Yield Portfolio
Corporate Bonds	$	—	$	100,727,941			$	—	$	100,727,941
Warrant		—		—				5		5
Short-Term Investment		—		3,660,863				—		3,660,863
Repurchase Agreement		—		702,000				—		702,000
Total	$	—	$	105,090,804			$	5	$	105,090,809
Capital Allocator Opportunistic Strategies Portfolio
Assets:
Exchange-Traded Funds	$	176,391,838	$	—			$	—	$	176,391,838
Closed-End Management Investment Companies		20,317,150		—				—		20,317,150
Short-Term Investment		—		4,536,630				—		4,536,630
Other Financial Instruments*
Forward Currency Contracts		—		46,704				—		46,704
Swap Agreement		—		326,137				—		326,137
Total	$	196,708,988	$	4,909,471			$	—	$	201,618,459
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(136,101	)		$	—	$	(136,101	)
Swap Agreement		—		(641,864	)			—		(641,864	)
Total	$	—	$	(777,965	)		$	—	$	(777,965	)

* Other financial instruments are derivative instruments which are valued at the unrealized appreciation/depreciation on the instruments.

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value during the period ended June 30, 2010:

Description	Balance as of December 31, 2009	Accrued Discounts (Premiums)	Realized Gain (Loss)	Change in Unrealized Appreciation (Depreciation)	Purchases	Sales	Net Transfers Into Level 3	Net Transfers Out of Level 3	Balance as of June 30, 2010	Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at June 30, 2010
U.S. High Yield Portfolio
Warrant	$       5	$       —	$     —	$       —	$     —	$  —	$       —	$       —	$       5	$       —
Total	$       5	$       —	$     —	$       —	$     —	$  —	$       —	$       —	$       5	$       —

Semi-Annual Report  99

Effective March 31, 2010, the Portfolios adopted Financial Accounting Standards Board Accounting Standards Update (ASU) 2010-06, Fair Value Measurements and Disclosures (Topic 820). The ASU amends GAAP to add new requirements for disclosures about transfers into and out of Levels 1 and 2 of the fair value hierarchy. It also clarifies existing fair value disclosure about the level of disaggregation and about inputs and valuation techniques used to measure fair value for investments that fall in either Levels 2 or 3 fair value hierarchy. There were no significant transfers into and out of Levels 1, 2, and 3 during the period ended June 30, 2010.

10. Derivative Instruments

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

A Portfolio enters into swap agreements in an attempt to obtain a particular return when it is considered desirable to do so, possibly at a lower cost to the Portfolio than if the Portfolio had invested directly in the asset that yielded the desired return.

Global Listed Infrastructure Portfolio

During the period ended June 30, 2010, the cost of purchases and the proceeds from sales of forward currency contracts were $144,504,886 and $226,079,808, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of June 30, 2010:

Fair Value

Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	22,769
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	1,481,295

The effect of derivative instruments on its Statement of Operations for the six months ended June 30, 2010 was:

Amount

Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	8,985
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(1,458,526	)

Capital Allocator Opportunistic Strategies Portfolio

During the period ended June 30, 2010, the cost of purchases and the proceeds from sales of forward currency contracts were $6,070,002 and $6,070,002, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of June 30, 2010:

Fair Value

Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	46,704
Equity Risk:
Gross unrealized appreciation on swap agreement	$	326,137
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	136,101
Equity Risk:
Gross unrealized depreciation on swap agreement	$	641,864

The effect of derivative instruments on its Statement of Operations for the six months ended June 30, 2010 was:

Amount

Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized gain on swap agreements	$	153,259

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Amount

Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(89,397	)
Equity Risk:
Net change in unrealized depreciation on swap agreement	$	(315,727	)

None of the other Portfolios in the Fund traded in derivatives during the period ended June 30, 2010.

11. Subsequent Events

Management has evaluated the possibility of subsequent events affecting the Fund’s financial statements through August 30, 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.

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    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 (65)	Director (August 1995)	President, Davidson Capital Management Corporation; Partner, Aquiline Holdings 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 Advisors, 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 (80)	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. (66)	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)	President, Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments; 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 L. Carroll (49)	Chief Executive Officer, President and Director (June 2004)	Deputy Chairman and Head of Global Marketing of the Investment Manager
Ashish Bhutani (50)	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 20 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.

102Semi-Annual Report

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 (48)	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 (35)	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 qualifies or until his or her earlier resignation or removal. Each officer serves in the same capacity for the other Lazard Funds.
(3)	In addition to Charles L. Carroll, President, whose information is included in the Interested Directors section.

Semi-Annual Report  103

    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 website 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 Agreement

Lazard Emerging Markets Equity Blend Portfolio
At meetings of the Board held on March 2, 2010 (the “March Meeting”) and April 1, 2010 (the “April Meeting”), the Board considered the approval of a new Management Agreement between the Fund, on behalf of Lazard Emerging Markets Equity Blend Portfolio (the “New Portfolio”), and the Investment Manager. The Directors who are not “interested persons” (as defined in the Act) of the Fund were assisted in their review by independent legal counsel and met with counsel in executive sessions separate from representatives of the Investment Manager.

The New Portfolio was proposed to pursue a strategy of asset allocation between Lazard Emerging Markets Equity Select Portfolio and Lazard Developing Markets Equity Portfolio, two funds managed by the Investment Manager (the “Underlying Portfolios”).

March Meeting

Services Provided
Representatives of the Investment Manager referenced the Investment Manager’s written presentation and discussions

in connection with the annual contract renewal meeting held on November 18-19, 2009 (the “November Meeting”) for the Fund’s existing Portfolios relevant to, among other matters, the nature, extent and quality of services provided to the Fund by the Investment Manager, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds complex of 20 funds comprised approximately $14.5 billion of the approximately $116.5 billion of total assets under the management of the Investment Manager and its global affiliates as of December 31, 2009); the Investment Manager’s global investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels; and the Investment Manager’s personnel, resources, financial condition and experience. The representatives of the Investment Manager confirmed that there had been no material changes to the information provided to the Board in connection with the November Meeting. The Board received a presentation on the strategies to be employed for the New Portfolio and the New Portfolio’s management team, including professional biographies, from a member of the proposed New Portfolio’s management team.

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 $14.5 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 each share class of the New Portfolio and the comparisons provided by Lipper, Inc., an independent provider of investment company data, which compared the contractual management fee and pro-

104  Semi-Annual Report

jected expense ratios for each share class of the New Portfolio to comparison groups chosen by Lipper (consisting of global and international multi-cap core and large-cap core affiliated funds of funds), 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 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 and projected expense ratio for each share class were higher than the medians of those of the corresponding comparison groups (each, a “Group”). The expense ratios of the New Portfolio and the funds in its corresponding Groups included the management fee and other expenses of the respective underlying funds in which each such fund was invested (the Underlying Portfolios, in the case of the New Portfolio). The Directors noted that the Groups did not include any funds of funds that were emerging markets funds as classified by Lipper.

The Directors also considered that there were no funds sub-advised by the Investment Manager in the same Lipper category as the New Portfolio or separately managed accounts managed by the Investment Manager with similar investment objectives, policies and strategies as the New Portfolio.

Performance. No composite information was available for the New Portfolio because the New Portfolio’s strategy had no performance history at the Investment Manager.

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 Funds’ existing Portfolios at this meeting and at the November Meeting 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 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. 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 were 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 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 with sufficient information to make an informed business decision with respect to the approval of the 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 an approximately $116.5 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.

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April Meeting

At the April Meeting, the Investment Manager proposed a structural change in the New Portfolio. It was explained that the Investment Manager had determined that the New Portfolio could be operated similarly by investing directly in securities comprising the Investment Manager’s Emerging Markets Equity Select and Developing Markets Equity strategies rather than by investing in the Underlying Portfolios. In light of this change, the Board was being asked to approve a new Management Agreement with a management fee of 1.05% of average daily net assets, noting that previously the fee had been 0.20% of the average daily net assets since the New Portfolio would also have indirectly paid management fees through investments in the Underlying Portfolios. Other than the change in the management fee, there were no other proposed changes to the form of Management Agreement approved at the March Meeting. The representatives of the Investment Manager referenced the materials that had been provided by the Investment Manager in advance of the meeting, including relevant excerpts from the prospectus and statement of additional information; a memorandum from the Investment Manager explaining the proposed structural change and stating there have been no material changes to the information provided to the Board for the annual contract renewal at the November Meeting or for the March Meeting and that the Investment Manager does not currently manage any separate accounts or other funds in a manner that is substantially similar to that to be employed for the New Portfolio; an expense table illustrating the proposed management fee and

expense limitation arrangement; a draft Management Agreement; and materials prepared by Lipper containing contractual management fee and estimated expense ratio comparisons. The representatives of the Investment Manager stated that the Investment Manager would contractually undertake to waive its fee and, if necessary, reimburse the New Portfolio to the extent total annual portfolio operating expenses exceed 1.35% and 1.65% of the Institutional Shares and Open Shares, respectively.

The Directors discussed the reasonableness of the fee in light of the services to be provided, specifically in comparison to the fee previously approved at the March Meeting under the original structure of the New Portfolio. It was noted that previously the New Portfolio paid 1.00% in management fees with respect to assets invested in each Underlying Portfolio plus 0.20% of its average daily net assets for allocation by the New Portfolio between the Underlying Portfolios, whereas under the Management Agreement the New Portfolio would pay 1.05% of average daily net assets in total management fees.

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 approval of the Management Agreement with respect to the New Portfolio. Based on their discussions as described above and at the March Meeting, the Board concluded that the fee to be paid to the Investment Manager was reasonable and approved the revised Management Agreement.

106  Semi-Annual Report

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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

6/10 LZDPS013

Lazard Funds

ITEM 2.   CODE OF ETHICS.

          Not applicable.

ITEM 3.   AUDIT COMMITTEE FINANCIAL EXPERT.

          Not applicable.

ITEM 4.   PRINCIPAL ACCOUNTANT FEES AND SERVICES.

          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 INVESTMENTCOMPANIES.

          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 of Directors 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)  Not applicable.

(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 L. Carroll
	Charles L. Carroll
	Chief Executive Officer
Date	September 1, 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 L. Carroll
	Charles L. Carroll
	Chief Executive Officer
Date	September 1, 2010

By	/s/ Stephen St. Clair
	Stephen St. Clair
	Chief Financial Officer
Date	September 1, 2010

EX-99.906CERT

[EX-99.906CERT]
Exhibit (b)

SECTION 906 CERTIFICATIONS

          In connection with this report on Form N-CSR for the Registrant as furnished to the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

          (1)          the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as applicable; and

          (2)          the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

By:	/s/ Charles L. Carroll
	Charles L. Carroll
	Chief Executive Officer
Date:	September 1, 2010

By:	/s/ Stephen St. Clair
	Stephen St. Clair
	Chief Financial Officer
Date:	September 1, 2010

This certificate is furnished pursuant to the requirements of Form N-CSR and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that section, and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.