UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number          811-06312

The Lazard Funds, Inc.

(Exact name of registrant as specified in charter)

30 Rockefeller Plaza

New York, New York 10112

(Address of principal executive offices)          (Zip code)

Nathan A. Paul, Esq.

Lazard Asset Management LLC

30 Rockefeller Plaza

New York, New York 10112

(Name and address of agent for service)

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

Date of fiscal year end:       12/31

Date of reporting period:     12/31/10

ITEM 1. REPORTS TO STOCKHOLDERS.

December 31, 2010

Lazard Funds Annual Report

Lazard Funds

U.S. Equity	International Equity	Emerging Markets
Lazard U.S. Equity Value Portfolio	Lazard International Equity Portfolio	Lazard Emerging Markets Equity Portfolio
Lazard U.S. Strategic Equity Portfolio	Lazard International Equity Select Portfolio	Lazard Developing Markets Equity Portfolio
Lazard U.S. Mid Cap Equity Portfolio	Lazard International Strategic Equity Portfolio	Lazard Emerging Markets Equity Blend
Lazard U.S. Small-Mid Cap Equity Portfolio	Lazard International Small Cap Equity Portfolio	Portfolio
	Global Equity	Fixed Income
	Lazard Global Listed Infrastructure Portfolio	Lazard U.S. High Yield Portfolio
		Capital Allocator
		Lazard Capital Allocator Opportunistic Strategies Portfolio

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
12	Performance Overviews
26	Information About Your Portfolio’s Expenses
29	Portfolio Holdings Presented by Sector
30	Portfolio Holdings Presented by Credit Rating
31	Portfolios of Investments
31	Lazard U.S. Equity Value Portfolio
33	Lazard U.S. Strategic Equity Portfolio
35	Lazard U.S. Mid Cap Equity Portfolio
37	Lazard U.S. Small-Mid Cap Equity Portfolio
39	Lazard International Equity Portfolio
41	Lazard International Equity Select Portfolio
43	Lazard International Strategic Equity Portfolio
45	Lazard International Small Cap Equity Portfolio
47	Lazard Global Listed Infrastructure Portfolio
49	Lazard Emerging Markets Equity Portfolio
51	Lazard Developing Markets Equity Portfolio
53	Lazard Emerging Markets Equity Blend Portfolio
55	Lazard U.S. High Yield Portfolio
60	Lazard Capital Allocator Opportunistic Strategies Portfolio
62	Notes to Portfolios of Investments
64	Statements of Assets and Liabilities
68	Statements of Operations
72	Statements of Changes in Net Assets
80	Financial Highlights
94	Notes to Financial Statements
106	Report of Independent Registered Public Accounting Firm
107	Board of Directors and Officers Information
109	Other Information
114	Tax Information

Please consider a Portfolio’s investment objectives, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. (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.

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The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

During 2010, global economies and financial markets continued to show signs of stability and recovery, following the extreme volatility of the previous two years. The economic environment was broadly stable in most developed markets, with a relatively modest recovery in place, while growth in emerging markets remained quite strong.

Key economic events during the year included the U.S. Federal Reserve’s decision to engage in quantitative easing; the European debt crisis; and the People’s Bank of China’s decision to raise interest rates for the first time in three years.

At Lazard Asset Management, we remain focused on fundamental, active management, particularly during these challenging financial times.

We continue to believe that financial markets offer attractive opportunities, and that we possess and cultivate the skills, knowledge, and experience to identify and take advantage of these opportunities. We are committed to leveraging our strengths to help you, our valued shareholder, reach your financial goals.

We sincerely appreciate your continued confidence in our management capabilities, and are honored that you have turned to Lazard for your investment needs.

Sincerely,

Lazard Asset Management LLC

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The Lazard Funds, Inc. Investment Overviews

U.S. Equities
The U.S. stock market posted robust returns in 2010, as economic growth continued to slowly improve. As the year progressed, the U.S. economy was healing. As GDP improved, many companies reported strong earnings and cash-rich balance sheets, manufacturing expanded, exports reverted to levels seen before the financial crisis, and retail sales returned to where they were before the recession began. In November, the U.S. Federal Reserve (the Fed) announced a second round of quantitative easing, which can be viewed as a means to increase demand and reduce the risk of deflation. However, concerns about the economy persisted, as the unemployment rate continued to stagnate and home prices remained weak. News from abroad also affected the market throughout the year, particularly geopolitical concerns about sovereign debt levels in Europe. Both Greece and Ireland agreed to rescue packages from the European Union and the International Monetary Fund; however, the bailouts did not fully stem fears of contagion in other Eurozone countries. China raised interest rates twice in the fourth quarter of 2010, the first rate increases in nearly three years, which dampened investors’ sentiment.

During 2010, sectors generally considered cyclicals, such as consumer discretionary and industrials, gained as the economy continued to recover. Materials and energy also posted large returns due to strong commodity prices. In contrast, the health care and utilities sectors had lower returns, as investors rotated away from more traditionally defensive stocks.

International Equities: Broadly Stable Developed Markets and Strong Emerging Markets
International equity markets followed the very strong rebound of 2009 with a near 8% rise in 2010. The economic environment was broadly stable in most developed markets, with at least a weak recovery in place, while growth in emerging markets remained very strong. Low equity valuations were sufficient to drive shares up during the year, especially in the fourth quarter as macroeconomic concerns eased and we saw further unconventional policy measures from the Fed.

The U.S. policy of quantitative easing kept short- and longer-term interest rates extremely low, while the government deficit continued to increase. In Europe, governments have started to address their weak fiscal positions. In the U.K. and a number of Eurozone countries, notably Greece, Ireland, and Spain, the proposals have been aggressive. The year 2010 saw increasing pressure on the Eurozone, as the lack of a common fiscal policy exposed deep divisions on how to respond to a debt crisis within one of its member states. So far the response has been one of crisis management, with first Greece, and then Ireland, receiving financial assistance from other member states, but a permanent solution is still required.

In this environment, the strongest performers of 2010 were many emerging market stocks, and the more cyclical stocks in developed markets. In emerging markets, the focus was on low-valued consumer stocks. In developed markets, industrial, material, and automobile stocks rose strongly, especially in the latter part of the year. Less cyclical stocks, such as those in the health care and utility sectors, made little progress. Despite low valuations, banks were generally weak during 2010, especially those with exposure to the Eurozone or to capital markets. Stock markets in Greece, Spain, Ireland, and Portugal all suffered. The Australian domestic market was weak as a result of rising interest rates, but a rising currency produced strong U.S. dollar-denominated returns. Similarly, the Japanese market was weak in yen as exporters suffered, but it provided good U.S. dollar-denominated returns.

Emerging Markets Equity: Fiscal Strength Propels Markets Higher
Despite intermittent periods of optimism, followed by concern about global growth, shares in emerging markets still returned nearly 19% in 2010, largely due to the monetary policies of the world’s central banks. For example, the Fed engaged in another phase of quantitative easing towards year-end, known as QE2. Considerable market weakness occurred due to the fiscal crises in Greece early in the year, and Ireland’s economic troubles in December. Although shares of companies in two countries, Hungary and the Czech Republic, finished lower over the year, all other major developing nations’ markets finished higher and, in many cases, rose considerably. Despite political strife, earthquakes, and global economic instability, significant increases were witnessed in markets such as Thailand, Chile, Colombia, and Peru. The Morgan Stanley Capital International (MSCI^®) Emerging Markets (EM^®) Index (the EM Index) increased by 18.88% during 2010, as stocks in Asia considerably outperformed those in Eastern Europe and Latin America.

Across Asia, excellent performance in the information technology sector aided Taiwanese equities, which recorded strong relative price movements in the region. Pakistani

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stocks rebounded powerfully following the devastating floods in the third quarter. Thai and Malaysian shares finished sharply higher despite ongoing political disharmony in Thailand, and due to the prospect of greater capital markets activity (in the form of possible privatizations) in Malaysia. Indonesian and Philippine equities experienced a continuing period of strong performance. Chinese shares, harmed by concerns over real estate prices and industrial production, performed relatively poorly.

All Latin American markets witnessed significant rises over the period. Argentinean, Chilean, and Peruvian equities were the best performers, helped by strong commodity prices and the aftermath of a debt renegotiation in Argentina. Mexican stocks also rose strongly, helped by the improving U.S. economic outlook. Brazilian shares rose by a more modest amount, held back by the record size of Petrobras’s secondary offering and despite the election of Dilma Rousseff as president.

Mixed performance was registered across most of Eastern Europe, the Middle East, and Africa. Share prices rose sharply in South Africa and Russia towards year-end as commodity prices rose, and investor concerns over changes in the taxation treatment of oil in Russia appeared to dissipate. Elsewhere, despite buoyant economic conditions, Turkish stocks experienced considerable profit-taking after a period of impressive performance, due to a weaker lira caused by a reduction in money market rates. Hungarian and Czech equities fell, and Polish shares finished modestly higher over the year as the European fiscal crises negatively impacted conditions.

All sectors in the EM Index finished the year higher. The consumer discretionary, consumer staples, industrials, health care, and materials sectors outperformed the EM Index. The utilities, energy, and telecom services sectors were the weakest performers over the year.

High Yield Fixed Income: Another Good Year
During 2010, the high yield market materially outperformed investment-grade corporate securities, U.S. Treasuries, and the S&P 500^® Index. High-yield market spreads narrowed by approximately 100 basis points over the year, in addition to an approximately 50 basis point fall in Treasury yields. The BB sector spreads narrowed by about 65 basis points, while the CCC sector spreads narrowed by 110 basis points. Distressed and lower-quality CCC securities continued to outperform in 2010. New high-yield bond issuance in the U.S. market was approximately $217 billion for 2010, a record year for high yield financing. Default rates continued to trend lower. The Moody’s trailing twelve-month issuer default rate, as of December 31, 2010, was 3.3%, down from 14.1% in December of 2009.

Lazard U.S. Equity Value Portfolio
For the year ended December 31, 2010, the Lazard U.S. Equity Value Portfolio’s Institutional Shares posted a total return of 12.00%, while Open Shares posted a total return of 11.62%, as compared with the 15.51% return for the Russell 1000 Value^® Index.

During the year, the Portfolio benefited from an overweight position and stock selection in the materials sector. Shares of Freeport-McMoRan Copper & Gold, the world’s second-largest copper producer, increased amid a period of strong copper prices. Stock selection in the consumer discretionary sector also helped returns. Shares of Comcast, one of the nation’s largest cable and media companies, rose in the latter half of the year as investors’ expectations of a joint venture increased. Shares of the company also rose as the Federal Communication Commission approved usage-based pricing in the fourth quarter of 2010, which could allow cable operators to better manage their networks.

In contrast, stock selection in the industrials sector detracted from performance. Shares of Raytheon, a company which operates in the defense, homeland security and other government markets, fell after it reported lower-than-expected earnings. Stock selection in the information technology sector also hurt performance. Shares of Hewlett-Packard, one of the world’s largest PC makers, declined as events weighed on investor sentiment towards the stock.

Lazard U.S. Strategic Equity Portfolio
For the year ended December 31, 2010, the Lazard U.S. Strategic Equity Portfolio’s Institutional Shares posted a total return of 13.13%, while Open Shares posted a total return of 12.79%, as compared with the 15.06% return for the S&P 500 Index.

During the year, the Portfolio benefited from stock selection in the consumer discretionary sector. Shares of AutoZone, a leading auto parts retailer, performed well on a series of strong quarterly earnings. Stock selection in the energy sec-

4  Annual Report

tor also helped returns. Shares of ConocoPhillips, one of the largest U.S. integrated oil companies, rose as the company executed on its strategy to sell non-core assets in order to fund debt reduction and share buybacks.

In contrast, stock selection in the consumer staples sector detracted from performance. Shares of retailer Wal-Mart underperformed as the market focused on consumer names with more exposure to discretionary spending. The company also had slightly negative U.S. year-over-year comparisons, largely due to food deflation. Stock selection in the information technology sector also hurt returns. Shares of Symantec, an information technology security and management firm, were weak as the company faced execution issues and market headwinds. However, the company’s latest quarter saw an implementation improvement, and maintenance/subscription revenues remained a solid generator of cash flow.

Lazard U.S. Mid Cap Equity Portfolio
For the year ended December 31, 2010, the Lazard U.S. Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 23.43%, while Open Shares posted a total return of 23.09%, as compared with the 25.48% return for the Russell Midcap^® Index.

Stock selection in the materials sector contributed to performance. Shares of Cliffs Natural Resources, a coal and iron ore mining company, increased as a result of strong commodity prices. Additionally, Cliffs benefited from a strong balance sheet and attractive free cash flow. Stock selection in the financials sector also helped returns. Shares of Ameriprise Financial, a leading financial planning and services firm, gained as the company integrated its acquisition of Columbia Asset Management and margins increased in all divisions.

In contrast, stock selection in the health care sector detracted from performance. Shares of Zimmer Holdings, one of the leading players in the orthopedic space, fell on softening demand. However, Zimmer has a strong product portfolio with well-known brands in an industry with high barriers to entry. Stock selection in the consumer staples sector also hurt returns. Ralcorp Holdings, the largest private-label food company in the United States, lagged other consumer staples names on market worries about input cost inflation and the heavier-than-expected discounting of branded labels.

Lazard U.S. Small-Mid Cap Equity Portfolio
For the year ended December 31, 2010, the Lazard U.S. Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 23.67%, while Open Shares posted a total return of 23.36%, as compared with the 26.71% return for the Russell 2500^® Index.

For the year 2010, stock selection in the health care and information technology sectors detracted from performance, while stock selection in the consumer discretionary and materials sectors helped returns.

Stock selection in the health care sector was the leading detractor over the year. Shares of XenoPort, a biotechnology company, fell significantly, as the U.S. Food and Drug Administration surprisingly rejected one of its later-stage pipeline drugs. This failure broke the investment thesis for this stock, and we eliminated the position from the Portfolio in 2010. Tenet Healthcare declined following an announcement that it was considering acquiring a large Australian hospital corporation, as investors were worried about the company’s debt levels if such an acquisition occurred. The company also declined based on lower-than-expected first-quarter 2010 volumes. We sold our position in Tenet during the year.

Stock selection in the information technology sector, especially the technology hardware and equipment space, also detracted from returns during 2010. Early in the year, Brocade Communications Systems missed earnings estimates by a large margin, structurally changing our outlook for the company and leading us to eliminate the position. FLIR Systems, a maker of thermal imaging systems, also fell early in 2010 on weaker-than-expected guidance due to uncertainty about its order book. SMART Technologies, a developer of interactive technology solutions such as digital whiteboards, fell short of consensus revenue expectations during the year. The company went on to reduce its full-year revenue estimates based on weaker education budgets, causing its share price to drop. Following this, we sold our position in SMART Technologies.

The Portfolio’s performance in 2010 was helped by stock selection in the consumer discretionary sector. Tenneco, a designer and manufacturer of automotive emission control and ride control products, benefited from the recovery in automobile demand and posted very strong second-quarter

Annual Report  5

earnings. In the retail segment, Family Dollar Stores, a discount retail chain, performed well, as its business remained strong during what proved to be a volatile year for consumers. Gymboree, a children’s clothing retailer, agreed to be acquired by asset management firm Bain Capital Partners in October 2010. We exited the position following the strong rally in Gymboree’s share price after the announcement of the acquisition.

Performance was also helped by stock selection in the materials sector. Rockwood Holdings, a developer and manufacturer of inorganic chemicals, rose after it announced better-than-expected second-quarter earnings results, strong growth, and improved margins. Schweitzer-Mauduit International, a manufacturer of specialty papers for the tobacco industry, also rose based on strong earnings during the year.

Lazard International Equity Portfolio
For the year ended December 31, 2010, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of 8.04%, while Open Shares posted a total return of 7.65%, as compared with the 7.75% return of the MSCI Europe, Australasia and Far East (EAFE^®) Index.

The strongest positive effect on the Portfolio stemmed from stock selection in the financials sector. Banks and real estate were the primary drivers, as positions in U.K. banks Barclays and Lloyds, emerging markets bank Banco do Brasil, and Japanese real estate company Daito Trust Construction, contributed to positive returns. We exited the position in Barclays during 2010, taking profit on Barclay’s increased valuation.

Stock selection in the energy sector also contributed to returns as the Portfolio benefited by minimizing losses with the early sale of a position in BP following the oil spill. Positions in oil services companies AMEC, Aker Solutions, and Technip were also beneficial.

In contrast, the largest drag on the Portfolio’s performance over the year was a low exposure to, and stock selection in, the industrials sector, which performed well on improved global demand and capital expenditure growth. Within the sector, positions in Atlantia and TNT hurt performance.

The Portfolio’s low exposure to the materials sector also detracted from returns, as the sector performed well on renewed demand and commodity price strength. Stock selection partially offset this low exposure, as Xstrata and Potash performed well.

Lazard International Equity Select Portfolio
For the year ended December 31, 2010, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of 8.49%, while Open Shares posted a total return of 8.29%, as compared with the 8.44% return of the MSCI EAFE/All Country World (ACWI^®) ex-U.S. Linked Index¹ and the 7.75% return of the MSCI EAFE Index.

The most significant positive effect on the Portfolio stemmed from stock selection in the financials sector. Most of this can be attributed to the banking industry, where positions in U.K. banks Barclays and Lloyds, and in emerging market banks Sberbank and Turkiye Garanti Bankasi, performed well. We exited the position in Barclays during 2010, taking profit on Barclay’s increased valuation.

Low exposure to the utilities sector also helped relative returns as the sector continued to lag on concerns about oversupply. Exposure to, and stock selection in, emerging markets also benefited relative returns, as positions in Weichai Power and Grupo Televisa performed well.

Lazard International Strategic Equity Portfolio
For the year ended December 31, 2010, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of 14.43%, while Open Shares posted a total return of 14.09%, as compared with the 7.75% return for the MSCI EAFE Index.

In the energy sector, the Portfolio benefited from exposure to oil service names AMEC and Aker Solutions, which were poised to benefit from rising expenditure by large oil companies. The Portfolio also benefited from a lack of exposure to large oil companies which performed poorly during 2010. Cairn, a U.K. oil and gas exploration and production company, rose as its Indian oil wells started production, which exposed the low valuation of this low-cost resource. Automobile stocks performed well in 2010, as production rebounded from the destocking lows of 2009, and as demand in emerging markets was very strong. BMW was a prime beneficiary of demand for its luxury products in China, which combined with an internal cost-reduction effort to drive strong performance during the year. Valeo saw strong results from its change of management, with cost reductions

6  Annual Report

and resilient volumes driving profits to levels much higher than expected by the market.

Banks generally performed poorly, but stock selection was strong in this sector, with Lloyds rising from depressed levels. Emerging market banks performed very strongly, with CIB in Egypt, Garanti in Turkey, Sberbank in Russia and Bradesco in Brasil all adding to positive returns. Elsewhere in the financials sector, private bank Julius Baer rose from low levels. Additionally, IG Group, a world leader in financial derivatives trading, continued to enjoy structural growth in its global business. In the media sector, U.K. business media group Informa rose strongly from a low valuation, while in South Africa, Naspers benefited from strong operational performance and the listing of its Russian internet company mail.ru.

On the negative side, the key drag on performance was low exposure to the industrial cyclical sectors, especially capital goods and mining. Stock selection was also weak in these areas, with the restructuring of French conglomerate Thales disappointing expectations. We exited the position in Thales during 2010. Irish building materials group CRH suffered from prolonged weakness in construction markets, and we exited the CRH position during 2010. In China, Yingde Gases saw weak steel production hamper demand from its customers.

Lazard International Small Cap Equity Portfolio
For the year ended December 31, 2010, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of 23.55%, while Open Shares posted a total return of 23.13%, as compared with the 22.04% return for the MSCI EAFE Small Cap Index.

The Portfolio benefited from strong stock selection in Continental Europe, particularly Norway, the Netherlands, and Germany. The overweight position in Sweden and the underweight position in Greece also supported performance. Stock selection in both the U.K. and Asia ex-Japan were negative contributors, as were the underweight positions in of both of those regions.

Stock selection in the health care sector benefited performance, as shares of Swedish medical technology provider Elekta continued to outperform. Elekta reported strong results throughout 2010.

The consumer discretionary sector added value to the Portfolio, helped by the acquisition of Unicharm Petcare. Unicharm Petcare produces a diverse range of food and toiletry products for pets. In the beginning of May, Unicharm Petcare’s parent company, Unicharm Corp., announced a tender offer for the remaining 63% of the shares of the company that it did not hold. We accepted the offer, and tendered the Portfolio’s shares of the company during 2010.

Stock selection in the information technology sector detracted from returns during 2010. Indra, which generates a significant portion of its revenues in Spain, specifically in the defense sector, underperformed as cutbacks in the Spanish defense budget put pressure on the company’s growth rate. Due to Spain’s fiscal crisis, we believed budget pressure was likely to continue and, as a result, we sold our position in the company during 2010.

Lazard Global Listed Infrastructure Portfolio
For the year ended December 31, 2010, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of 6.63%, while Open Shares posted a total return of 6.28%, as compared with the 4.33% return for the UBS Global 50/50 Infrastructure & Utilities^® Index and 11.76% return for the MSCI World^® Index.

Toll roads were the strongest contributors to returns over the year as 2010 witnessed increased mergers and acquisitions activity in the toll roads sector. Toll roads were sold down in 2008 and 2009 due to higher oil prices and uncertainty during the global financial crisis that traffic numbers would be impacted by a recession. Toll roads were also sold down as they tend to have higher levels of debt than most industrial companies. Factors negatively affecting the toll road sector in the past abated in 2010. The lows that these shares were trading at were unsustainable, and astute investors took advantage of this, triggering an increase in mergers and acquisitions activity in the sector.

A beneficiary of this increased activity was Intoll, the largest contributor to returns during 2010. Macquarie Atlas Roads Group was also a significant contributor during the year, benefiting from involvement in a large French road network.

Red Electrica, Spain’s monopoly electricity transmission network, was the largest detractor from returns over the year. This was largely due to ongoing concerns about the

Annual Report  7

level of sovereign debt in Europe, which caused volatility in particularly affected countries, such as Italy and Spain.

Lazard Emerging Markets Equity Portfolio
For the year ended December 31, 2010, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of 22.81%, while Open Shares posted a total return of 22.43%, as compared with the 18.88% return for the EM Index.

Stock selection in the financials sector helped the Portfolio’s performance over the year, as a position in Banco do Brasil, a Brazilian bank, rose on improved sentiment following a capital raise. Stock selection in Brazil also added to returns, as a position in Brazilian tobacco company Souza Cruz benefited from strong operating trends.

Additionally, a higher-than-index exposure to consumer staples and a lower-than-index exposure to China helped performance. A lower-than-index exposure and stock selection in the energy sector also added to returns.

HTC, a Taiwanese smartphone designer and manufacturer, was one of the top-performing positions during the year. The company performed well on the successful introduction of new products. The Portfolio also benefited from holding shares of Kumba Iron Ore, a South African iron ore producer, which rose on sharply higher iron ore prices.

In contrast, stock selection in Korea hurt performance during the year. A position in Hite, a Korean beer producer, experienced profit-taking on expectation of lower volumes and concerns over corporate structure.

Stock selection in the telecom services sector also hurt performance. Shares of the Egyptian Company for Mobile Services (or Mobinil), an Egyptian cellular operator, performed poorly following a weaker-than-expected earnings release.

A position in Redecard was one of the worst performers over the year. Shares of the Brazilian credit card operator in the information technology sector declined on disappointing earnings results.

Lazard Developing Markets Equity Portfolio
For the year ended December 31, 2010, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of 28.62%, while Open Shares posted a total return of 28.13%, as compared with the 18.88% return for the EM Index.

For the year, stock selection in the energy sector significantly contributed to the Portfolio’s relative performance. Shares of Pacific Rubiales Energy, a Colombian upstream oil and gas company, outperformed due to the continuation of its successful production ramp-up. Eurasia Drilling, a Russian energy services company, performed well on a healthy order book anticipating growth in its core markets.

Stock selection and a higher-than-index exposure within the consumer discretionary sector also significantly contributed to Portfolio returns in 2010. Shares of Companhia Hering, a Brazilian apparel retailer, performed well due to strong operations and attractive valuations.

Stock selection within the industrials sector added value over the year. China State Construction International Holdings, a Chinese construction holding company, rose as the company’s Chinese order book continued to climb. Samsung Engineering, a Korean construction company, performed well due to better-than-expected new order growth.

Stock selection in the financials and information technology sectors also helped performance.

In addition, a larger-than-index exposure in Turkey and a lower-than-index exposure in China, helped returns.

Conversely, stock selection within Taiwan hurt returns over the period. Hung Poo Real Estate Development, a Taiwanese property developer, underperformed on slower 2010 sales. Cathay Financial, a Taiwanese insurance company, underperformed due to increased expenses and the lackluster investment performance of its life insurance unit. We exited our positions in both Hung Poo Real Estate Development and Cathay Financial during 2010.

A larger-than-index exposure in Kazakhstan hurt performance. Shares of KazMunaiGas Exploration, an oil and gas exploration and production company based in Kazakhstan, underperformed due to government plans to raise taxes on mineral extractions.

Stock selection and a lower-than-index exposure within the materials sector subtracted value over the year. Fibria

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Celulose, a pulp producer, underperformed as pulp prices disappointed.

Lazard Emerging Markets Equity Blend Portfolio
For the period from May 28, 2010 (the Portfolio’s inception) through December 31, 2010, the Lazard Emerging Markets Equity Blend Portfolio’s Institutional Shares posted a total return of 24.66%, while Open Shares posted a total return of 24.46%, as compared with the 25.76% return of the EM Index.

The Portfolio is managed using a combination of two of the Investment Manager’s equity strategies in emerging markets, a relative value and a relative growth strategy. The Investment Manager considers four broad economic contexts pertinent to allocation decisions between the relative value and growth strategies: differentiation, growth/expansion, mania, and panic.

Changes made to the Portfolio’s allocation among these economic contexts during 2010 reflected a consideration of many factors, including the Eurozone sovereign debt crisis; global macro data readings, particularly the Purchasing Manager’s Index (which measures economic activity) in China, India, and Northern Europe; and other data.

In the third quarter of 2010, we twice increased the Portfolio’s allocation to the relative growth strategy, as we felt it was better positioned to outperform in an environment in emerging markets where volatility was declining, valuations were still at a discount to developed markets equities, and inflationary pressures were increasing. These allocation changes helped: the relative growth strategy outperformed the relative value strategy during the third quarter of 2010, as investors were willing to pay a premium for companies with the ability to grow earnings. In the fourth quarter of 2010, we reduced the Portfolio’s overweight to the relative growth strategy, maintaining a modest growth overweight.

Lazard U.S. High Yield Portfolio
For the year ended December 31, 2010, the Lazard U.S. High Yield Portfolio’s Institutional Shares posted a total return of 11.78%, while Open Shares posted a total return of 11.19%, as compared with the 15.19% return for the Merrill Lynch High Yield Master II^® Index (the High Yield Index).

The Portfolio underperformed the High Yield Index primarily due to little exposure to lower-quality securities and to the bank and finance sectors, both of which continued to rally. High-yield market spreads narrowed by approximately 100 basis points over the year, in addition to an approximate 50 basis point fall in U.S. Treasury yields. BB spreads narrowed by about 65 basis points, while CCC spreads narrowed by 110 basis points. Distressed and lower-quality CCC securities continued to outperform in 2010. New high-yield bond issuance in the U.S. market was approximately $217 billion for 2010, a record year for high yield financing. Default rates continued to trend lower. The Moody’s trailing twelve-month issuer default rate, as of December 31, 2010, was 3.3%, down from 14.1% in December of 2009.

Performance was helped by overweight positions in the gaming, energy, and telecom services 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 2010 as the high-yield market recovered from the financial shock of 2008.

Lazard Capital Allocator Opportunistic Strategies Portfolio
For the year ended December 31, 2010, the Lazard Capital Allocator Opportunistic Strategies Portfolio’s Institutional Shares posted a total return of 14.58%, while Open Shares posted a total return of 14.35%. The benchmark returns for the year ended December 31, 2010 were 11.76% for the MSCI World Index and 10.62% for Global Asset Allocation Blended Index².

All four of the Portfolio’s strategies (thematic, diversifying, contrarian, and discounted) added to returns over the year. Within the thematic investments, which were approximately 35% of the Portfolio’s net assets at the end of 2010, the U.S. savings rate, Chile, and Canada small-cap themes all helped performance. The South Korea, Brazil, and natural gas themes, however, detracted from returns within the strategy. The Portfolio exited the positions with exposure to Chile, Korea, and natural gas investments during 2010.

In the diversifying strategy, which comprised approximately 32% of the Portfolio at the end of 2010, an investment in gold significantly added to performance, as the price of gold

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reached new highs during the year. These returns were somewhat offset by an allocation to volatility via an investment that tracks the Chicago Board Options Exchange Volatility^® Index, which detracted from performance during 2010. The Portfolio exited the volatility position during the year.

Contrarian investments, which comprised approximately 16% of the Portfolio as of December 31, 2010, also helped performance, as investments in European financials and oil and gas rose. The utilities exposure somewhat offset the positive returns elsewhere in the strategy. The Portfolio completely sold its investments with exposure to European financials and utilities during 2010.

Investments in the discounted strategy, which comprised approximately 6% of the Portfolio at the end of 2010, added to performance. A position in The China Fund, a closed-end fund, rose during the holding period. The Portfolio exited the position during the year.

10  Annual Report

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”), State Street Bank and Trust Company, the Fund’s Administrator (“State Street”), or Boston Financial Data Services, Inc., the Fund’s transfer and dividend disbursing agent (“BFDS”); 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 December 31, 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 objective, strategies, risks and fees.

1

The MSCI EAFE/ACWI ex-U.S. Linked Index is an index created by the Portfolio’s Investment Manager which links the performance of the MSCI EAFE Index for all periods through June 30, 2010 and the MSCI ACWI ex-U.S. Index for all periods thereafter.

2

The Global Market Exposure Index is a blended index constructed by the Portfolio’s Investment Manager and is comprised of 36% Barclays Capital U.S. Aggregate Bond® Index, 19.5% S&P 500 Index, 15% MSCI Europe® Index, 9% MSCI Pacific® Index, 6% MSCI Emerging Markets Index, 6% S&P MidCap 400® Index, 4.5% S&P SmallCap 600® Index, and 4% Three Month London Interbank Offered Rate (LIBOR). As of July 1, 2010, the Global Market Exposure Index benchmark was replaced with the Global Asset Allocation Blended Index. The Global Asset Allocation Blended Index consists of a quarterly rebalanced, 60/40 split of the MSCI World (Net) Index and the Barclays Capital U.S. Aggregate Bond Index.

Annual Report  11

The Lazard Funds, Inc. Performance Overviews

Lazard U.S. Equity Value Portfolio

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

Average Annual Total Returns*
Periods Ended December 31, 2010
	One Year			Five Years			Since  Inception†
Institutional Shares**		12.00	%		2.57	%		2.54	%
Open Shares**		11.62	%		2.30	%		2.26	%
Russell 1000 Value Index		15.51	%		1.28	%		1.46	%

*	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, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was September 30, 2005.

12   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 December 31, 2010
	One Year			Five Years			Since Inception†
Institutional Shares**		13.13	%		1.97	%		2.47	%
Open Shares**		12.79	%		1.66	%		2.17	%
S&P 500 Index		15.06	%		2.29	%		2.70	%

*	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, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was December 30, 2004.

Annual Report  13

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* Years Ended December 31, 2010
	One Year			Five Years			Ten Years
Institutional Shares**		23.43	%		3.28	%		7.13	%
Open Shares**		23.09	%		3.02	%		6.84	%
Russell Midcap Index		25.48	%		4.66	%		6.54	%

*	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, primarily based on the differences in fees borne by shareholders investing in different classes.

14   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* Years Ended December 31, 2010
	One Year			Five Years			Ten Years
Institutional Shares**		23.67	%		6.68	%		8.38	%
Open Shares**		23.36	%		6.35	%		8.09	%
Russell 2500 Index		26.71	%		4.86	%		6.98	%
Russell 2000/2500 Linked Index		26.71	%		5.06	%		6.63	%

*	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 after August 24, 2008. 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, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  15

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*
Years Ended December 31, 2010
	One Year			Five Years			Ten Years
Institutional Shares**		8.04	%		2.81	%		2.59	%
Open Shares**		7.65	%		2.48	%		2.31	%
MSCI EAFE Index		7.75	%		2.46	%		3.50	%

*	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 in developed countries 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, primarily based on the differences in fees borne by shareholders investing in different classes.

16  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, MSCI All Country World (ACWI^®) ex-U.S. Index, MSCI EAFE/ACWI ex-U.S. Linked Index and MSCI EAFE Index*

Average Annual Total Returns*
Periods Ended December 31, 2010
	One Year			Five Years			Since Inception		†
Institutional Shares**		8.49	%		1.54	%		3.55	%
Open Shares**		8.29	%		1.24	%		3.27	%
MSCI ACWI ex-U.S. Index		11.15	%		4.82	%		6.96	%
MSCI EAFE/ACWI ex-U.S. Linked Index		8.44	%		2.59	%		4.99	%
MSCI EAFE Index		7.75	%		2.46	%		4.92	%

*	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 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 ACWI ex-U.S. Index is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. The MSCI EAFE/ACWI ex-U.S. Linked Index is an index created by the Portfolio’s Investment Manager, which links the performance of the MSCI EAFE Index for all periods through June 30, 2010 and the MSCI ACWI ex-U.S. Index for all periods thereafter. The MSCI EAFE Index is a broadly diversified international index comprised of equity securities of approximately 1,000 companies located in developed countries outside the United States. As of July 1, 2010, the MSCI EAFE Index was replaced with the MSCI ACWI ex-U.S. Index. The change of index reflects a change in the Investment Manager’s benchmark index across a broad range of similar strategies and products managed by the Investment Manager. 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, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was May 31, 2001.

Annual Report  17

Lazard International Strategic Equity Portfolio

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

Average Annual Total Returns*
Periods Ended December 31, 2010
	Institutional Shares									Open Shares
	One Year			Five Years			Since Inception		†	One Year			Since Inception		†
International Strategic Equity Portfolio**		14.43	%		4.57	%		5.96	%		14.09	%		2.93	%
MSCI EAFE Index		7.75	%		2.46	%		3.77	%		7.75	%		1.27	%

*	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 in developed countries 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, primarily 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.

18  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*
Years Ended December 31, 2010
	One Year			Five Years			Ten Years
Institutional Shares**		23.55	%		0.77	%		7.32	%
Open Shares**		23.13	%		0.49	%		6.97	%
MSCI EAFE Small Cap Index		22.04	%		2.81	%		9.45	%

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

Annual Report  19

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*

Average Annual Total Returns*
Periods Ended December 31, 2010

	One Year			Since Inception
Institutional Shares**		6.63	%		6.61	%
Open Shares**		6.28	%		6.26	%
UBS Global 50/50 Infrastructure & Utilities Index		4.33	%		4.33	%
MSCI World Index		11.76	%		11.76	%

*	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 BFDS; 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. 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 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, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was December 31, 2009.

20  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*
Years Ended December 31, 2010

	One Year			Five Years			TenYears
Institutional Shares**		22.81	%		13.51	%		17.91	%
Open Shares**		22.43	%		13.14	%		17.58	%
MSCI EM Index		18.88	%		12.78	%		15.89	%

*	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; 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, primarily based on the differences in fees borne by shareholders investing in different classes.

Annual Report  21

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 December 31, 2010

	One Year			Since Inception		†
Institutional Shares**		28.62	%		28.40	%
Open Shares**		28.13	%		28.03	%
MSCI EM Index		18.88	%		21.03	%

*	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, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was September 30, 2008.

22  Annual Report

Lazard Emerging Markets Equity Blend Portfolio

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

Total Returns*
Period Ended December 31, 2010

	Since Inception		†
Institutional Shares**		24.66	%
Open Shares**		24.46	%
MSCI EM Index		25.76	%

*	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, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
	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. 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, primarily based on the differences in fees borne by shareholders investing in different classes.
†	The inception date for the Portfolio was May 28, 2010.

Annual Report  23

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*
Years Ended December 31, 2010

	One Year			Five Years			Ten Years
Institutional Shares**		11.78	%		6.42	%	5.86	%
Open Shares**		11.19	%		6.11	%	5.58	%
Merrill Lynch High Yield Master II Index		15.19	%		8.81	%	8.60	%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; 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, primarily based on the differences in fees borne by shareholders investing in different classes.

24  Annual Report

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, Global Asset Allocation Blended Index and Global Market Exposure Index*

Average Annual Total Returns*
Periods Ended December 31, 2010

	Institutional Shares						Open Shares
	One Year			Since Inception†			One Year			Since Inception†
Capital Allocator Opportunistic Strategies Portfolio**		14.58	%		2.14	%		14.35	%		2.02	%
MSCI World Index		11.76	%		–2.09	%		11.76	%		–1.96	%
Global Asset Allocation Blended Index		10.62	%		2.28	%		10.62	%		2.36	%
Global Market Exposure Index		11.77	%		3.30	%		11.77	%		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 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 Asset Allocation Blended Index is rebalanced quarterly and is a blended index constructed by the Portfolio’s Investment Manager that is comprised of 60% MSCI World (Net) Index and 40% Barclays Capital U.S. Aggregate Bond® Index. The Global Market Exposure Index is a blended index constructed by the Portfolio’s Investment Manager, which 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 EM Index, 6% S&P MidCap 400® Index, 4.5% S&P SmallCap 600® Index, and 4% Three Month London Interbank Offered Rate. As of July 1, 2010, the Global Market Exposure Index was replaced with the Global Asset Allocation Blended Index. The Investment Manager believes that the Global Asset Allocation Blended Index is a more appropriate comparison for the Portfolio’s investment strategies. 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, primarily 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.

Annual Report  25

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

Expense Example
As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2010 through December 31, 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 7/1/10		Ending Account Value 12/31/10		Expenses Paid During Period* 7/1/10 - 12/31/10		Annualized Expense Ratio During Period 7/1/10 - 12/31/10
U.S. Equity Value Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,222.00	$	5.25		0.94	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.48	$	4.77		0.94	%
Open Shares
Actual	$	1,000.00	$	1,218.90	$	6.93		1.24	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.96	$	6.30		1.24	%
U.S. Strategic Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,246.30	$	5.52		0.97	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.29	$	4.96		0.97	%
Open Shares
Actual	$	1,000.00	$	1,244.20	$	7.22		1.28	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.77	$	6.50		1.28	%
U.S. Mid Cap Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,267.50	$	5.28		0.92	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.55	$	4.70		0.92	%
Open Shares
Actual	$	1,000.00	$	1,265.70	$	6.76		1.18	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.23	$	6.03		1.18	%

26  Annual Report

Portfolio	Beginning Account Value 7/1/10		Ending Account Value 12/31/10		Expenses Paid During Period* 7/1/10 - 12/31/10		Annualized Expense Ratio During Period 7/1/10 - 12/31/10
U.S. Small-Mid Cap Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,277.90	$	5.53		0.96	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.35	$	4.91		0.96	%
Open Shares
Actual	$	1,000.00	$	1,276.60	$	7.52		1.31	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.60	$	6.67		1.31	%
International Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,220.60	$	5.56		0.99	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.20	$	5.06		0.99	%
Open Shares
Actual	$	1,000.00	$	1,218.20	$	7.27		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65	$	6.61		1.30	%
International Equity Select Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,233.90	$	6.48		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.41	$	5.85		1.15	%
Open Shares
Actual	$	1,000.00	$	1,233.00	$	8.16		1.45	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.90	$	7.38		1.45	%
International Strategic Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,266.90	$	5.17		0.90	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.65	$	4.61		0.90	%
Open Shares
Actual	$	1,000.00	$	1,264.30	$	6.85		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.16	$	6.11		1.20	%
International Small Cap Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,303.80	$	6.56		1.13	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.51	$	5.75		1.13	%
Open Shares
Actual	$	1,000.00	$	1,301.20	$	8.29		1.43	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.00	$	7.27		1.43	%
Global Listed Infrastructure Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,152.10	$	7.05		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65	$	6.61		1.30	%
Open Shares
Actual	$	1,000.00	$	1,150.00	$	8.68		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.14	$	8.14		1.60	%

Annual Report  27

Portfolio	Beginning Account Value 7/1/10		Ending Account Value 12/31/10		Expenses Paid During Period* 7/1/10 - 12/31/10		Annualized Expense Ratio During Period 7/1/10 - 12/31/10
Emerging Markets Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,269.00	$	6.56		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.42	$	5.84		1.15	%
Open Shares
Actual	$	1,000.00	$	1,267.30	$	8.55		1.50	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.66	$	7.61		1.50	%
Developing Markets Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,343.30	$	7.68		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65	$	6.61		1.30	%
Open Shares
Actual	$	1,000.00	$	1,340.20	$	9.44		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.14	$	8.13		1.60	%
Emerging Markets Equity Blend Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,244.20	$	7.64		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.40	$	6.87		1.35	%
Open Shares
Actual	$	1,000.00	$	1,243.40	$	9.33		1.65	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,016.89	$	8.39		1.65	%
U.S. High Yield Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,081.10	$	2.89		0.55	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,022.43	$	2.80		0.55	%
Open Shares
Actual	$	1,000.00	$	1,079.30	$	4.45		0.85	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.92	$	4.33		0.85	%
Capital Allocator Opportunistic Strategies Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,198.90	$	5.65		1.02	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.06	$	5.19		1.02	%
Open Shares
Actual	$	1,000.00	$	1,197.90	$	7.31		1.32	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.55	$	6.72		1.32	%

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

28  Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2010

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		7.1	%		13.9	%		16.1	%		15.2	%		12.5	%
Consumer Staples		11.7			13.3			8.1			3.6			10.0
Energy		12.6			13.2			10.3			6.9			8.6
Financials		23.5			12.7			14.5			20.1			25.2
Health Care		16.7			11.3			7.2			8.1			9.2
Industrials		6.4			8.9			13.2			14.5			9.9
Information Technology		9.6			20.0			13.3			16.9			11.1
Materials		4.8			5.7			8.4			8.5			5.2
Telecommunication Services		3.5			—			—			—			4.8
Utilities		3.1			—			4.4			4.7			1.2
Short-Term Investments		1.0			1.0			4.5			1.5			2.3
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		7.2	%		15.8	%		17.1	%		—	%		5.8	%
Consumer Staples		13.1			11.6			5.4			—			11.2
Energy		10.0			10.4			8.6			—			5.9
Financials		24.0			26.0			6.6			—			23.1
Health Care		9.3			10.0			10.9			—			—
Industrials		6.9			7.6			30.5			54.5			5.3
Information Technology		12.1			8.3			12.2			1.0			18.6
Materials		8.9			5.8			4.0			—			16.0
Telecommunication Services		6.8			3.2			3.3			—			9.2
Utilities		—			—			—			44.2			1.4
Short-Term Investments		1.7			1.3			1.4			0.3			3.5
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		17.6	%		10.8	%		2.3	%
Consumer Staples		1.6			7.0			10.8
Energy		14.2			10.5			6.6
Financials		27.6			22.1			10.1
Health Care		—			—			1.8
Industrials		6.9			6.6			15.5
Information Technology		12.0			15.7			20.3
Materials		8.0			10.5			14.0
Telecommunication Services		5.0			7.2			1.0
Utilities		3.2			4.3			3.4
Other		—			—			4.6
Short-Term Investments		3.9			5.3			9.6
Total Investments		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report  29

The Lazard Funds, Inc. Portfolio Holdings Presented by Credit Rating December 31, 2010

S&P Credit Rating*	Lazard U.S. High Yield Portfolio
BBB		2.6	%
BBB-		5.7
BB+		7.4
BB		13.2
BB-		21.7
B+		22.9
B		10.2
B-		10.7
CCC+		1.1
CCC		1.0
NR		0.4
Short-Term Investment		3.1
Total Investments		100.0	%

* Represents percentage of total investments.

30  Annual Report

The Lazard Funds, Inc. Portfolios of Investments December 31, 2010

Description	Shares		Value
Lazard U.S. Equity Value Portfolio
Common Stocks | 98.9%
Aerospace & Defense | 2.6%
General Dynamics Corp.		2,530	$	179,529
Raytheon Co.		3,625		167,982
				347,511
Alcohol & Tobacco | 1.1%
Altria Group, Inc.		2,575		63,396
Reynolds American, Inc.		2,390		77,962
				141,358
Banking | 12.1%
Bank of America Corp.		24,400		325,496
City National Corp.		1,100		67,496
Fifth Third Bancorp		4,145		60,848
JPMorgan Chase & Co.		9,816		416,395
KeyCorp.		8,975		79,429
PNC Financial Services Group, Inc.		2,770		168,194
Wells Fargo & Co.		15,895		492,586
				1,610,444
Cable Television | 1.7%
Comcast Corp., Class A		11,170		232,448
Chemicals | 1.8%
Air Products & Chemicals, Inc.		780		70,941
Dow Chemical Co.		4,775		163,018
				233,959
Computer Software | 3.9%
Microsoft Corp.		15,500		432,760
Oracle Corp.		2,945		92,178
				524,938
Consumer Products | 4.7%
Energizer Holdings, Inc. (a)		870		63,423
Kimberly-Clark Corp.		1,144		72,118
Mattel, Inc.		2,580		65,609
Newell Rubbermaid, Inc.		8,030		145,986
The Procter & Gamble Co.		4,340		279,192
				626,328
Electric | 3.1%
American Electric Power Co., Inc.		2,735		98,405
DPL, Inc.		2,605		66,975
Entergy Corp.		1,425		100,933
PG&E Corp.		1,555		74,391
PPL Corp.		2,690		70,801
				411,505

Description	Shares		Value
Energy Exploration & Production | 5.3%
Anadarko Petroleum Corp.		1,285	$	97,866
Apache Corp.		1,745		208,056
Devon Energy Corp.		2,320		182,143
Occidental Petroleum Corp.		2,305		226,121
				714,186
Energy Integrated | 6.6%
Chevron Corp.		5,981		545,766
ConocoPhillips		3,795		258,439
Hess Corp.		955		73,096
				877,301
Energy Services | 0.7%
Halliburton Co.		2,300		93,909
Financial Services | 5.4%
Bank of New York Mellon Corp.		6,039		182,378
Citigroup, Inc. (a)		13,190		62,388
Franklin Resources, Inc.		680		75,623
Invesco, Ltd.		4,000		96,240
MasterCard, Inc., Class A		270		60,510
Morgan Stanley		2,500		68,025
The Goldman Sachs Group, Inc.		1,045		175,727
				720,891
Food & Beverages | 4.0%
Dr Pepper Snapple Group, Inc.		2,500		87,900
General Mills, Inc.		1,700		60,503
Kraft Foods, Inc., Class A		2,000		63,020
PepsiCo, Inc.		2,305		150,586
Ralcorp Holdings, Inc. (a)		1,620		105,316
The Coca-Cola Co.		1,115		73,333
				540,658
Health Services | 2.9%
Medco Health Solutions, Inc. (a)		1,110		68,010
UnitedHealth Group, Inc.		3,230		116,635
WellPoint, Inc. (a)		3,545		201,569
				386,214
Insurance | 6.5%
ACE, Ltd.		1,910		118,897
Aon Corp.		1,785		82,128
Everest Re Group, Ltd.		730		61,919
Lincoln National Corp.		4,195		116,663
MetLife, Inc.		2,785		123,765
Prudential Financial, Inc.		2,100		123,291
RenaissanceRe Holdings, Ltd.		1,260		80,249
The Allstate Corp.		2,770		88,308
Willis Group Holdings PLC		2,030		70,299
				865,519

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

Annual Report  31

Description	Shares		Value
Lazard U.S. Equity Value Portfolio (concluded)
Leisure & Entertainment | 2.4%
The Walt Disney Co.		2,240	$	84,022
Time Warner, Inc.		2,820		90,720
Viacom, Inc., Class B		3,675		145,567
				320,309
Manufacturing | 4.6%
Corning, Inc.		5,660		109,351
Flowserve Corp.		600		71,532
General Electric Co.		15,645		286,147
Honeywell International, Inc.		1,465		77,880
Illinois Tool Works, Inc.		1,200		64,080
				608,990
Medical Products | 2.9%
Baxter International, Inc.		1,520		76,942
Covidien PLC		2,075		94,745
Life Technologies Corp. (a)		1,310		72,705
Medtronic, Inc.		3,955		146,691
				391,083
Metal & Glass Containers | 2.2%
Ball Corp.		1,455		99,013
Owens-Illinois, Inc. (a)		6,540		200,778
				299,791
Metals & Mining | 0.8%
Freeport-McMoRan Copper & Gold, Inc.		920		110,483
Pharmaceutical & Biotechnology | 10.9%
Amgen, Inc. (a)		3,090		169,641
Gilead Sciences, Inc. (a)		2,345		84,983
Johnson & Johnson		4,458		275,727
Merck & Co., Inc.		6,830		246,153
Pfizer, Inc.		32,924		576,499
Warner Chilcott PLC, Class A		4,300		97,008
				1,450,011

Description	Shares		Value
Retail | 4.8%
CVS Caremark Corp.		5,465	$	190,018
The Gap, Inc.		4,340		96,088
The TJX Cos., Inc.		1,965		87,226
Wal-Mart Stores, Inc.		4,990		269,111
				642,443
Semiconductor & Components | 2.0%
Intel Corp.		6,305		132,594
Texas Instruments, Inc.		2,125		69,063
Xilinx, Inc.		2,400		69,552
				271,209
Technology Hardware | 2.4%
Cisco Systems, Inc. (a)		3,200		64,736
Hewlett-Packard Co.		2,175		91,568
International Business Machines Corp.		1,090		159,968
				316,272
Telecommunications | 3.5%
AT&T, Inc.		15,955		468,758
Total Common Stocks
(Identified cost $11,875,235)				13,206,518
Short-Term Investment | 1.0%
State Street Institutional Treasury Money Market Fund (Identified cost $134,017)		134,017		134,017
Total Investments | 99.9%
(Identified cost $12,009,252) (b)			$	13,340,535
Cash and Other Assets in Excess of Liabilities | 0.1%				19,717
Net Assets | 100.0%			$	13,360,252

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

32  Annual Report

Description	Shares		Value
Lazard U.S. Strategic Equity Portfolio
Common Stocks | 98.5%
Aerospace & Defense | 2.3%
Raytheon Co.	39,800	$	1,844,332
Agriculture | 1.1%
Monsanto Co.	13,200		919,248
Alcohol & Tobacco | 2.2%
Molson Coors Brewing Co., Class B	35,200		1,766,688
Automotive | 0.6%
Ford Motor Co. (a)	31,500		528,885
Banking | 5.4%
Bank of America Corp.	52,600		701,684
JPMorgan Chase & Co.	44,491		1,887,308
Wells Fargo & Co.	57,400		1,778,826
			4,367,818
Cable Television | 4.3%
Comcast Corp., Class A	168,800		3,512,728
Chemicals | 0.9%
Dow Chemical Co.	21,700		740,838
Coal | 0.5%
Massey Energy Co.	7,800		418,470
Commercial Services | 1.7%
Apollo Group, Inc., Class A (a)	10,700		422,543
Corrections Corp. of America (a)	37,900		949,774
			1,372,317
Computer Software | 6.9%
Microsoft Corp.	85,435		2,385,345
Oracle Corp.	81,200		2,541,560
Symantec Corp. (a)	42,200		706,428
			5,633,333
Consumer Products | 4.4%
Avon Products, Inc.	34,100		990,946
Mattel, Inc.	9,200		233,956
Newell Rubbermaid, Inc.	32,800		596,304
Stanley Black & Decker, Inc.	12,700		849,249
The Procter & Gamble Co.	13,600		874,888
			3,545,343

Description	Shares		Value
Energy Exploration & Production | 2.9%
Apache Corp.	7,100	$	846,533
Devon Energy Corp.	7,700		604,527
EQT Corp.	20,800		932,672
			2,383,732
Energy Integrated | 7.7%
Chevron Corp.	14,000		1,277,500
ConocoPhillips	67,600		4,603,560
CONSOL Energy, Inc.	8,100		394,794
			6,275,854
Energy Services | 1.0%
Halliburton Co.	9,800		400,134
Noble Corp.	11,400		407,778
			807,912
Financial Services | 6.7%
Ameriprise Financial, Inc.	28,700		1,651,685
MasterCard, Inc., Class A	3,100		694,741
Morgan Stanley	45,900		1,248,939
NYSE Euronext	26,400		791,472
State Street Corp.	22,100		1,024,114
			5,410,951
Food & Beverages | 1.8%
General Mills, Inc.	21,100		750,949
PepsiCo, Inc.	10,800		705,564
			1,456,513
Insurance | 1.5%
The Travelers Cos., Inc.	21,800		1,214,478
Leisure & Entertainment | 1.1%
Darden Restaurants, Inc.	7,800		362,232
McDonald’s Corp.	6,900		529,644
			891,876
Manufacturing | 4.5%
Dover Corp.	13,700		800,765
Emerson Electric Co.	11,300		646,021
Honeywell International, Inc.	25,193		1,339,260
Illinois Tool Works, Inc.	15,700		838,380
			3,624,426
Medical Products | 1.1%
Medtronic, Inc.	24,800		919,832
Metal & Glass Containers | 2.4%
Ball Corp.	28,115		1,913,226
Metals & Mining | 1.3%
Nucor Corp.	23,900		1,047,298

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

Annual Report  33

Description	Shares		Value
Lazard U.S. Strategic Equity Portfolio (concluded)
Pharmaceutical & Biotechnology | 10.2%
Amgen, Inc. (a)	18,800	$	1,032,120
Forest Laboratories, Inc. (a)	18,800		601,224
Gilead Sciences, Inc. (a)	19,300		699,432
Johnson & Johnson	20,260		1,253,081
Merck & Co., Inc.	18,800		677,552
Pfizer, Inc.	229,800		4,023,798
			8,287,207
Refining | 1.1%
Valero Energy Corp.	37,600		869,312
Retail | 11.7%
AutoZone, Inc. (a)	6,000		1,635,540
Big Lots, Inc. (a)	18,700		569,602
Lowe’s Cos, Inc.	16,400		411,312
The Gap, Inc.	53,800		1,191,132
Wal-Mart Stores, Inc.	50,100		2,701,893
Walgreen Co.	77,100		3,003,816
			9,513,295
Semiconductor & Components | 2.4%
Intel Corp.	91,100		1,915,833
Technology | 3.9%
AOL, Inc. (a)	14,800		350,908
Computer Sciences Corp.	8,500		421,600
eBay, Inc. (a)	46,900		1,305,227
Google, Inc., Class A (a)	1,910		1,134,483
			3,212,218

Description	Shares		Value
Technology Hardware | 5.9%
Cisco Systems, Inc. (a)	58,355	$	1,180,522
EMC Corp. (a)	29,300		670,970
International Business Machines Corp.	19,990		2,933,732
			4,785,224
Transportation | 1.0%
Norfolk Southern Corp.	13,600		854,352
Total Common Stocks
(Identified cost $66,630,998)			80,033,539
Preferred Stock | 0.6%
Automotive | 0.6%
Better Place, Inc., Series B
(Identified cost $453,501)	151,167		453,501
Short-Term Investment | 0.9%
State Street Institutional Treasury
Money Market Fund
(Identified cost $774,560)	774,560		774,560
Total Investments | 100.0%
(Identified cost $67,859,059) (b)		$	81,261,600
Liabilities in Excess of Cash and Other Assets | (0.0)%			(30,664	)
Net Assets | 100.0%		$	81,230,936

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

34  Annual Report

Description	Shares		Value
Lazard U.S. Mid Cap Equity Portfolio
Common Stocks | 95.2%
Alcohol & Tobacco | 2.8%
Molson Coors Brewing Co., Class B	109,700	$	5,505,843
Automotive | 1.5%
Lear Corp. (a)	30,300		2,990,913
Banking | 3.7%
City National Corp.	64,300		3,945,448
Fifth Third Bancorp	132,200		1,940,696
KeyCorp.	155,600		1,377,060
			7,263,204
Cable Television | 0.9%
Cablevision Systems Corp.	53,600		1,813,824
Chemicals | 2.0%
Air Products & Chemicals, Inc.	18,800		1,709,860
Eastman Chemical Co.	25,500		2,144,040
			3,853,900
Coal | 1.6%
Arch Coal, Inc.	57,100		2,001,926
Massey Energy Co.	22,000		1,180,300
			3,182,226
Commercial Services | 3.4%
Corrections Corp. of America (a)	113,500		2,844,310
Equifax, Inc.	106,200		3,780,720
			6,625,030
Computer Software | 4.8%
BMC Software, Inc. (a)	72,900		3,436,506
Intuit, Inc. (a)	40,500		1,996,650
Quest Software, Inc. (a)	48,300		1,339,842
Symantec Corp. (a)	157,700		2,639,898
			9,412,896
Construction & Engineering | 1.4%
Foster Wheeler AG (a)	79,100		2,730,532
Consumer Products | 6.7%
Avon Products, Inc.	87,700		2,548,562
Mattel, Inc.	148,000		3,763,640
Newell Rubbermaid, Inc.	269,800		4,904,964
Stanley Black & Decker, Inc.	29,900		1,999,413
			13,216,579

Description	Shares		Value
Education | 1.2%
DeVry, Inc.		51,000	$	2,446,980
Electric | 3.1%
Allegheny Energy, Inc.		79,000		1,914,960
American Electric Power Co., Inc.		113,700		4,090,926
				6,005,886
Energy Exploration & Production | 3.6%
Energen Corp.		55,500		2,678,430
EQT Corp.		58,300		2,614,172
Noble Energy, Inc.		19,500		1,678,560
				6,971,162
Energy Integrated | 1.1%
Murphy Oil Corp.		29,200		2,176,860
Energy Services | 3.8%
Rowan Cos., Inc. (a)		68,300		2,384,353
The Williams Cos., Inc.		108,800		2,689,536
Tidewater, Inc.		44,600		2,401,264
				7,475,153
Financial Services | 5.4%
Ameriprise Financial, Inc.		91,600		5,271,580
Invesco, Ltd.		132,600		3,190,356
NYSE Euronext		73,200		2,194,536
				10,656,472
Food & Beverages | 4.0%
Campbell Soup Co.		70,300		2,442,925
McCormick & Co., Inc.		28,200		1,312,146
Ralcorp Holdings, Inc. (a)		63,600		4,134,636
				7,889,707
Health Services | 0.7%
Laboratory Corp. of America Holdings (a)		15,400		1,353,968
Insurance | 1.2%
PartnerRe, Ltd.		28,800		2,314,080
Leisure & Entertainment | 2.7%
Darden Restaurants, Inc.		52,100		2,419,524
International Game Technology		168,200		2,975,458
				5,394,982
Manufacturing | 8.4%
Dover Corp.		113,100		6,610,695
Harsco Corp.		28,400		804,288
Joy Global, Inc.		18,900		1,639,575
Parker Hannifin Corp.		37,200		3,210,360
Rockwell Collins, Inc.		73,300		4,270,458
				16,535,376

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

Annual Report  35

Description	Shares		Value
Lazard U.S. Mid Cap Equity Portfolio (concluded)
Medical Products | 5.3%
CareFusion Corp. (a)		103,750	$	2,666,375
Hospira, Inc. (a)		50,200		2,795,638
Life Technologies Corp. (a)		40,981		2,274,446
Zimmer Holdings, Inc. (a)		50,300		2,700,104
				10,436,563
Metal & Glass Containers | 2.8%
Ball Corp.		81,900		5,573,295
Metals & Mining | 3.6%
Cliffs Natural Resources, Inc.		30,700		2,394,907
Compass Minerals International, Inc.		35,700		3,186,939
United States Steel Corp.		24,900		1,454,658
				7,036,504
Pharmaceutical & Biotechnology | 1.3%
Warner Chilcott PLC, Class A		108,500		2,447,760
Real Estate | 4.3%
Digital Realty Trust, Inc. REIT		31,900		1,644,126
LaSalle Hotel Properties REIT		38,700		1,021,680
Public Storage REIT		15,100		1,531,442
The Macerich Co. REIT		45,500		2,155,335
UDR, Inc. REIT		85,500		2,010,960
				8,363,543
Refining | 1.7%
Holly Corp.		39,700		1,618,569
Valero Energy Corp.		70,400		1,627,648
				3,246,217
Retail | 3.6%
AutoZone, Inc. (a)		13,100		3,570,929
Big Lots, Inc. (a)		48,000		1,462,080
The TJX Cos., Inc.		44,800		1,988,672
				7,021,681

Description	Shares		Value
Semiconductor & Components | 3.6%
Analog Devices, Inc.	102,900	$	3,876,243
Xilinx, Inc.	109,700		3,179,106
			7,055,349
Technology | 0.9%
Teradata Corp. (a)	42,100		1,732,836
Technology Hardware | 4.1%
Ingram Micro, Inc., Class A (a)	197,800		3,776,002
NetApp, Inc. (a)	14,400		791,424
Seagate Technology PLC (a)	89,600		1,346,688
Teradyne, Inc. (a)	153,500		2,155,140
			8,069,254
Total Common Stocks
(Identified cost $157,243,511)			186,798,575
Preferred Stock | 0.7%
Automotive | 0.7%
Better Place, Inc., Series B (Identified cost $1,307,499)	435,833		1,307,499
Short-Term Investment | 4.5%
State Street Institutional Treasury Money Market Fund (Identified cost $8,869,893)	8,869,893		8,869,893
Total Investments | 100.4%
(Identified cost $167,420,903) (b)		$	196,975,967
Liabilities in Excess of Cash and Other Assets | (0.4)%			(799,863	)
Net Assets | 100.0%		$	196,176,104

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

36  Annual Report

Description	Shares		Value
Lazard U.S. Small-Mid Cap Equity Portfolio
Common Stocks | 98.2%
Automotive | 2.1%
Dorman Products, Inc. (a)		11,214	$	406,395
Modine Manufacturing Co. (a)		207,100		3,210,050
Tenneco, Inc. (a)		43,450		1,788,402
				5,404,847
Banking | 6.2%
BancorpSouth, Inc.		82,400		1,314,280
City National Corp.		59,800		3,669,328
Fulton Financial Corp.		246,700		2,550,878
PacWest Bancorp		221,101		4,727,139
Wintrust Financial Corp.		118,693		3,920,430
				16,182,055
Chemicals | 3.9%
GrafTech International, Ltd. (a)		124,800		2,476,032
Kronos Worldwide, Inc.		45,335		1,926,284
Rockwood Holdings, Inc. (a)		83,400		3,262,608
Solutia, Inc. (a)		105,600		2,437,248
				10,102,172
Commercial Services | 2.2%
Equifax, Inc.		74,300		2,645,080
Team, Inc. (a)		128,600		3,112,120
				5,757,200
Computer Software | 6.1%
Akamai Technologies, Inc. (a)		34,100		1,604,405
BMC Software, Inc. (a)		79,900		3,766,486
Nuance Communications, Inc. (a)		121,800		2,214,324
Quest Software, Inc. (a)		155,100		4,302,474
Red Hat, Inc. (a)		90,350		4,124,478
				16,012,167
Construction & Engineering | 2.0%
Orion Marine Group, Inc. (a)		148,500		1,722,600
Quanta Services, Inc. (a)		178,200		3,549,744
				5,272,344
Consumer Products | 6.7%
Central Garden & Pet Co., Class A (a)		405,500		4,006,340
Mattel, Inc.		102,000		2,593,860
Matthews International Corp., Class A		81,850		2,863,113
Newell Rubbermaid, Inc.		139,400		2,534,292
Tempur-Pedic International, Inc. (a)		70,700		2,832,242
The Middleby Corp. (a)		29,950		2,528,379
				17,358,226

Description	Shares		Value
Electric | 1.6%
Northeast Utilities		133,550	$	4,257,574
Energy Integrated | 2.8%
Cimarex Energy Co.		44,400		3,930,732
James River Coal Co. (a)		132,550		3,357,492
				7,288,224
Energy Services | 4.1%
Helmerich & Payne, Inc.		80,400		3,897,792
Key Energy Services, Inc. (a)		224,100		2,908,818
Oceaneering International, Inc. (a)		52,600		3,872,938
				10,679,548
Financial Services | 3.3%
NYSE Euronext		133,000		3,987,340
Stifel Financial Corp. (a)		72,400		4,491,696
				8,479,036
Food & Beverages | 2.0%
Ralcorp Holdings, Inc. (a)		49,800		3,237,498
Snyders-Lance, Inc.		88,900		2,083,816
				5,321,314
Forest & Paper Products | 2.3%
Rock-Tenn Co., Class A		58,000		3,129,100
Schweitzer-Mauduit International, Inc.		44,800		2,818,816
				5,947,916
Gas Utilities | 3.1%
New Jersey Resources Corp.		100,900		4,349,799
Piedmont Natural Gas Co., Inc.		129,900		3,632,004
				7,981,803
Health Services | 2.0%
Community Health Systems, Inc. (a)		50,600		1,890,922
VCA Antech, Inc. (a)		146,700		3,416,643
				5,307,565
Housing | 0.9%
Trex Co., Inc. (a)		100,500		2,407,980
Insurance | 2.2%
Arch Capital Group, Ltd. (a)		42,200		3,715,710
Aspen Insurance Holdings, Ltd.		71,200		2,037,744
				5,753,454
Leisure & Entertainment | 2.2%
Darden Restaurants, Inc.		62,000		2,879,280
Texas Roadhouse, Inc. (a)		171,700		2,948,089
				5,827,369

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

Annual Report  37

Description	Shares		Value
Lazard U.S. Small-Mid Cap Equity Portfolio (concluded)
Manufacturing | 7.8%
Altra Holdings, Inc. (a)		191,811	$	3,809,367
BE Aerospace, Inc. (a)		65,900		2,440,277
FLIR Systems, Inc. (a)		123,400		3,671,150
Generac Holdings, Inc.		126,036		2,038,002
Harsco Corp.		168,600		4,774,752
Regal-Beloit Corp.		52,250		3,488,210
				20,221,758
Medical Products | 5.0%
CareFusion Corp. (a)		125,400		3,222,780
Haemonetics Corp. (a)		26,500		1,674,270
Hospira, Inc. (a)		72,500		4,037,525
Life Technologies Corp. (a)		73,610		4,085,355
				13,019,930
Metal & Glass Containers | 1.9%
Ball Corp.		36,000		2,449,800
Owens-Illinois, Inc. (a)		77,700		2,385,390
				4,835,190
Metals & Mining | 1.4%
Schnitzer Steel Industries, Inc., Class A		55,700		3,697,923
Pharmaceutical & Biotechnology | 1.0%
Warner Chilcott PLC, Class A		119,100		2,686,896
Real Estate | 8.4%
CB Richard Ellis Group, Inc., Class A (a)		68,100		1,394,688
Digital Realty Trust, Inc. REIT		45,350		2,337,339
Extra Space Storage, Inc. REIT		219,700		3,822,780
Kilroy Realty Corp. REIT		70,150		2,558,371
LaSalle Hotel Properties REIT		131,100		3,461,040
The Macerich Co. REIT		90,077		4,266,947
UDR, Inc. REIT		175,200		4,120,704
				21,961,869
Retail | 6.6%
American Eagle Outfitters, Inc.		176,150		2,577,074
Brown Shoe Co., Inc.		245,100		3,414,243
Family Dollar Stores, Inc.		53,600		2,664,456
Iconix Brand Group, Inc. (a)		175,000		3,379,250
Liz Claiborne, Inc. (a)		343,000		2,455,880
Williams-Sonoma, Inc.		73,500		2,623,215
				17,114,118

Description	Shares		Value
Semiconductor & Components | 3.5%
FARO Technologies, Inc. (a)	16,065	$	527,575
ON Semiconductor Corp. (a)	434,100		4,288,908
Xilinx, Inc.	144,300		4,181,814
			8,998,297
Technology | 1.0%
SS&C Technologies Holdings, Inc.	130,639		2,679,406
Technology Hardware | 3.6%
EchoStar Corp., Class A (a)	5,890		147,073
Ingram Micro, Inc., Class A (a)	150,500		2,873,045
Polycom, Inc. (a)	85,650		3,338,637
Teradyne, Inc. (a)	208,600		2,928,744
			9,287,499
Transportation | 2.3%
Echo Global Logistics, Inc. (a)	275,250		3,314,010
UTI Worldwide, Inc.	129,450		2,744,340
			6,058,350
Total Common Stocks
(Identified cost $221,937,264)			255,902,030
Preferred Stock | 0.2%
Automotive | 0.2%
Better Place, Inc., Series B
(Identified cost $452,901)	150,967		452,901

Description	Principal Amount (000)		Value
Repurchase Agreement | 1.5%
State Street Bank and Trust Co., 0.01%, 01/03/11 (Dated 12/31/10, collateralized by $3,850,000 United States Treasury Note, 2.50%, 04/30/15, with a value of $3,994,375) Proceeds of $3,916,003 (Identified cost $3,916,000)	$	3,916	$	3,916,000
Total Investments | 99.9%
(Identified cost $226,306,165) (b)			$	260,270,931
Cash and Other Assets in Excess of Liabilities | 0.1%				249,988
Net Assets | 100.0%			$	260,520,919

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

38  Annual Report

Description	Shares		Value
Lazard International Equity Portfolio
Common Stocks | 97.6%
Australia | 2.2%
QBE Insurance Group, Ltd.		72,800	$	1,351,447
Telstra Corp., Ltd.		728,100		2,077,715
Total Australia				3,429,162
Belgium | 2.1%
Anheuser-Busch InBev NV		58,380		3,338,964
Brazil | 2.7%
Banco do Brasil SA		126,665		2,397,479
Cielo SA		232,900		1,887,051
Total Brazil				4,284,530
Canada | 1.7%
Potash Corp. of Saskatchewan, Inc.		9,200		1,429,086
Rogers Communications, Inc.		36,300		1,263,180
Total Canada				2,692,266
China | 1.6%
Industrial and Commercial Bank of China, Ltd., Class H		1,978,600		1,468,779
Weichai Power Co., Ltd., Class H		160,000		989,090
Total China				2,457,869
Denmark | 1.3%
Novo Nordisk A/S, Class B		17,310		1,951,935
Finland | 0.9%
Sampo Oyj, A Shares		53,400		1,430,736
France | 10.1%
BNP Paribas SA		39,618		2,520,546
Danone SA		38,380		2,411,524
Sanofi-Aventis		57,827		3,697,571
Technip SA		24,100		2,225,354
Total SA		41,946		2,222,479
Valeo SA (a)		47,660		2,704,513
Total France				15,781,987

Description	Shares		Value
Germany | 4.4%
Bayerische Motoren Werke AG		24,050	$	1,891,322
SAP AG		29,520		1,502,952
Siemens AG		27,858		3,450,910
Total Germany				6,845,184
Hong Kong | 1.2%
AIA Group, Ltd.		122,200		343,515
Kerry Properties, Ltd.		290,500		1,506,169
Total Hong Kong				1,849,684
India | 0.7%
Idea Cellular, Ltd. (a)		729,300		1,127,018
Israel | 0.9%
Teva Pharmaceutical Industries, Ltd., Sponsored ADR		27,100		1,412,723
Italy | 1.1%
Atlantia SpA		82,147		1,676,234
Japan | 19.4%
Asics Corp.		63,990		822,830
Benesse Holdings, Inc.		28,200		1,299,027
Canon, Inc.		64,600		3,349,748
Daito Trust Construction Co., Ltd.		47,600		3,259,712
Don Quijote Co., Ltd.		36,300		1,105,677
eAccess, Ltd.		1,783		1,078,277
Honda Motor Co., Ltd.		70,400		2,787,732
Hoya Corp.		85,400		2,074,255
JS Group Corp.		63,600		1,399,842
Keyence Corp.		5,106		1,479,161
Mitsubishi Corp.		58,900		1,594,558
Mitsubishi Estate Co., Ltd.		106,000		1,966,203
Nidec Corp.		16,500		1,668,494
Sumitomo Mitsui Financial Group, Inc.		64,500		2,297,500
Yahoo Japan Corp.		6,016		2,334,081
Yamada Denki Co., Ltd.		25,340		1,729,075
Total Japan				30,246,172
Mexico | 0.9%
Grupo Televisa SA Sponsored ADR (a)		51,600		1,337,988

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

Annual Report  39

Description	Shares		Value
Lazard International Equity Portfolio (concluded)
Netherlands | 2.6%
ING Groep NV (a)		226,150	$	2,200,047
TNT NV		70,725		1,866,569
Total Netherlands				4,066,616
Norway | 0.9%
Aker Solutions ASA		82,930		1,410,580
Russia | 1.0%
Sberbank		435,500		1,483,749
Singapore | 0.9%
Singapore Telecommunications, Ltd.		599,600		1,425,098
South Korea | 2.3%
Hyundai Mobis (a)		7,077		1,774,083
Samsung Electronics Co., Ltd. GDR (c)		4,383		1,849,187
Total South Korea				3,623,270
Spain | 1.1%
Amadeus IT Holding SA, A Shares		85,520		1,791,916
Sweden | 0.9%
Assa Abloy AB, Class B		51,600		1,453,867
Switzerland | 7.0%
Julius Baer Group, Ltd.		34,830		1,631,609
Nestle SA		44,220		2,589,353
Novartis AG		73,390		4,313,134
UBS AG (a)		148,510		2,438,105
Total Switzerland				10,972,201
Turkey | 0.9%
Turkiye Garanti Bankasi AS ADR		259,100		1,334,365
United Kingdom | 28.8%
AMEC PLC		50,590		907,061
BAE Systems PLC		256,340		1,318,876
BG Group PLC		81,110		1,638,903

Description	Shares		Value
BHP Billiton PLC		77,100	$	3,066,469
British American Tobacco PLC		58,249		2,237,251
GlaxoSmithKline PLC		152,650		2,951,156
HSBC Holdings PLC		329,820		3,348,100
Informa PLC		320,470		2,036,051
International Power PLC		281,430		1,920,089
Lloyds Banking Group PLC (a)		2,140,966		2,193,052
Prudential PLC		340,180		3,542,901
Royal Dutch Shell PLC, A Shares		102,250		3,409,152
Standard Chartered PLC		94,067		2,530,615
Tullow Oil PLC		78,980		1,552,766
Unilever PLC		105,150		3,218,128
Vodafone Group PLC		624,008		1,613,052
William Morrison Supermarkets PLC		437,730		1,826,275
WPP PLC		166,540		2,049,956
Xstrata PLC		152,470		3,578,812
Total United Kingdom				44,938,665
Total Common Stocks
(Identified cost $128,314,308)				152,362,779

Description	Principal Amount (000)		Value
Repurchase Agreement | 2.3%
State Street Bank and Trust Co., 0.01%, 01/03/11 (Dated 12/31/10, collateralized by $3,590,000 United States Treasury Note, 2.50%, 04/30/15, with a value of $3,724,625) Proceeds of $3,649,003 (Identified cost $3,649,000)	$	3,649	$	3,649,000
Total Investments | 99.9%
(Identified cost $131,963,308) (b)			$	156,011,779
Cash and Other Assets in Excess of Liabilities | 0.1%				142,490
Net Assets | 100.0%			$	156,154,269

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

40  Annual Report

Description	Shares		Value
Lazard International Equity Select Portfolio
Common Stocks | 97.8%
Australia | 3.9%
BHP Billiton, Ltd.		4,093	$	189,431
Telstra Corp., Ltd.		24,328		69,423
Total Australia				258,854
Belgium | 2.5%
Anheuser-Busch InBev NV		2,920		167,005
Brazil | 6.2%
Banco do Brasil SA		7,140		135,144
Cielo SA		15,170		122,913
Vale SA Sponsored ADR		4,405		152,281
Total Brazil				410,338
Canada | 2.4%
Potash Corp. of Saskatchewan, Inc.		620		96,308
Rogers Communications, Inc.		1,740		60,549
Total Canada				156,857
China | 2.1%
China Construction Bank Corp., Class H		109,662		98,759
Weichai Power Co., Ltd., Class H		7,000		43,273
Total China				142,032
Denmark | 1.5%
Novo Nordisk A/S, Class B		885		99,796
Finland | 1.4%
Sampo Oyj, A Shares		3,543		94,927
France | 10.6%
BNP Paribas SA		1,035		65,848
Danone SA		1,852		116,366
LVMH Moet Hennessy Louis Vuitton SA		599		98,535
Sanofi-Aventis		2,722		174,050
Technip SA		1,258		116,162
Total SA		2,602		137,865
Total France				708,826
Germany | 2.0%
SAP AG		2,665		135,683

Description	Shares		Value
Hong Kong | 1.5%
AIA Group, Ltd.		6,000	$	16,867
Sun Hung Kai Properties, Ltd.		5,130		84,875
Total Hong Kong				101,742
Indonesia | 1.5%
PT Telekomunikasi Indonesia Tbk Sponsored ADR		2,815		100,355
Japan | 15.4%
Canon, Inc.		3,415		177,080
Daito Trust Construction Co., Ltd.		1,080		73,960
Fanuc, Ltd.		1,025		157,430
Honda Motor Co., Ltd.		3,825		151,464
Hoya Corp.		2,660		64,608
Mitsubishi Estate Co., Ltd.		4,830		89,592
Nidec Corp.		600		60,673
Sumitomo Mitsui Financial Group, Inc.		4,068		144,903
Yahoo Japan Corp.		277		107,470
Total Japan				1,027,180
Mexico | 1.8%
Grupo Televisa SA Sponsored ADR (a)		4,720		122,389
Netherlands | 1.4%
ING Groep NV (a)		9,827		95,600
Russia | 3.1%
Mobile TeleSystems Sponsored ADR		3,095		64,593
OAO LUKOIL Sponsored ADR		1,115		63,141
Sberbank		23,346		79,540
Total Russia				207,274
Singapore | 1.5%
Singapore Telecommunications, Ltd.		41,810		100,017
South Africa | 1.1%
Standard Bank Group, Ltd.		4,434		72,391
South Korea | 2.6%
Hyundai Mobis (a)		429		107,543
KT&G Corp. (a)		1,170		66,701
Total South Korea				174,244
Sweden | 2.2%
Assa Abloy AB, Class B		5,065		142,710

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

Annual Report  41

Description	Shares		Value
Lazard International Equity Select Portfolio (concluded)
Switzerland | 6.4%
Nestle SA		2,057	$	120,450
Novartis AG		3,260		191,590
UBS AG (a)		7,019		115,232
Total Switzerland				427,272
Taiwan | 2.9%
Taiwan Semiconductor Manufacturing Co., Ltd.		80,435		195,870
Turkey | 1.7%
Turkcell Iletisim Hizmetleri AS		8,296		56,686
Turkiye Garanti Bankasi AS		11,072		56,077
Total Turkey				112,763
United Kingdom | 22.1%
BAE Systems PLC		10,694		55,021
BG Group PLC		4,365		88,199
British American Tobacco PLC		4,005		153,826
GlaxoSmithKline PLC		7,929		153,290
Lloyds Banking Group PLC (a)		110,880		113,577
Prudential PLC		12,916		134,517

Description	Shares		Value
Royal Dutch Shell PLC, A Shares		5,075	$	167,712
Standard Chartered PLC		4,493		120,872
Tullow Oil PLC		4,547		89,395
Unilever PLC		4,215		129,001
William Morrison Supermarkets PLC		27,313		113,954
Xstrata PLC		6,466		151,771
Total United Kingdom				1,471,135
Total Common Stocks
(Identified cost $5,639,305)				6,525,260
Short-Term Investment | 1.7%
State Street Institutional Treasury Money Market Fund (Identified cost $111,882)		111,882		111,882
Total Investments | 99.5%
(Identified cost $5,751,187) (b)			$	6,637,142
Cash and Other Assets in Excess of Liabilities | 0.5%				32,977
Net Assets | 100.0%			$	6,670,119

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

42  Annual Report

Description	Shares		Value
Lazard International Strategic Equity Portfolio
Common Stocks | 96.4%
Australia | 1.3%
Toll Holdings, Ltd.	881,860	$	5,168,269
Belgium | 4.9%
Anheuser-Busch InBev NV	206,930		11,835,079
Umicore NV	151,380		7,873,091
Total Belgium			19,708,170
Brazil | 1.3%
Duratex SA	485,000		5,215,211
China | 3.3%
Industrial and Commercial Bank of China, Ltd., Class H	8,962,264		6,652,977
Weichai Power Co., Ltd., Class H	328,000		2,027,635
Yingde Gases Group Co. (a)	5,030,000		4,432,830
Total China			13,113,442
Denmark | 3.5%
Novo Nordisk A/S, Class B	62,420		7,038,693
Pandora A/S (a)	117,551		7,080,814
Total Denmark			14,119,507
Egypt | 2.4%
Commercial International Bank	712,700		5,813,324
Eastern Co.	194,120		4,012,816
Total Egypt			9,826,140
Finland | 2.3%
Sampo Oyj, A Shares	347,010		9,297,374
France | 10.1%
BNP Paribas SA	130,203		8,283,676
Danone SA	76,300		4,794,144
Sanofi-Aventis	179,700		11,490,369
Technip SA	71,900		6,639,126
Valeo SA (a)	168,960		9,587,800
Total France			40,795,115
Germany | 1.9%
Bayerische Motoren Werke AG	96,580		7,595,172

Description	Shares		Value
Hong Kong | 0.7%
AIA Group, Ltd.	1,049,800	$	2,951,077
India | 0.5%
Idea Cellular, Ltd. (a)	1,333,520		2,060,745
Israel | 0.8%
Teva Pharmaceutical Industries, Ltd.	57,600		3,019,191
Italy | 1.8%
Prysmian SpA	429,581		7,319,125
Japan | 13.0%
Asics Corp.	543,950		6,994,504
Canon, Inc.	198,100		10,272,213
Daito Trust Construction Co., Ltd.	87,600		5,998,966
Don Quijote Co., Ltd.	355,100		10,816,139
eAccess, Ltd.	8,135		4,919,676
JS Group Corp.	287,700		6,332,306
Yahoo Japan Corp.	17,700		6,867,225
Total Japan			52,201,029
Netherlands | 1.2%
ASM International NV (a)	141,735		5,018,165
Norway | 0.9%
Aker Solutions ASA	219,770		3,738,130
Russia | 1.3%
Sberbank	1,496,414		5,098,283
South Africa | 4.5%
Aspen Pharmacare Holdings, Ltd.	388,130		5,421,152
MTN Group, Ltd.	268,140		5,471,481
Naspers, Ltd., N Shares	120,970		7,124,146
Total South Africa			18,016,779
South Korea | 1.1%
Hyundai Mobis (a)	18,130		4,544,881
Spain | 3.3%
Amadeus IT Holding SA, A Shares	301,370		6,314,660
Tecnicas Reunidas SA	106,290		6,763,012
Total Spain			13,077,672

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

Annual Report  43

Description	Shares		Value
Lazard International Strategic Equity Portfolio (concluded)
Switzerland | 5.9%
Julius Baer Group, Ltd.	164,802	$	7,720,137
Novartis AG	115,800		6,805,572
UBS AG (a)	552,260		9,066,514
Total Switzerland			23,592,223
Turkey | 0.5%
Turkiye Garanti Bankasi AS	360,590		1,826,304
United Kingdom | 29.9%
AMEC PLC	545,753		9,785,155
BBA Aviation PLC	1,453,498		5,021,783
BG Group PLC	345,640		6,983,976
British American Tobacco PLC	272,518		10,466,983
Cairn Energy PLC (a)	465,410		3,047,606
GlaxoSmithKline PLC	325,300		6,288,970
IG Group Holdings PLC	906,700		7,209,540
Informa PLC	1,495,647		9,502,338
Lloyds Banking Group PLC (a)	9,726,082		9,962,700
Man Group PLC	1,077,110		4,970,791
Michael Page International PLC	509,610		4,409,656
Prudential PLC	1,060,450		11,044,356
TalkTalk Telecom Group PLC	2,176,863		5,430,313
Tullow Oil PLC	241,220		4,742,443
Unilever PLC	322,464		9,869,049
William Morrison Supermarkets PLC	1,335,830		5,573,282
Xstrata PLC	251,250		5,897,400
Total United Kingdom			120,206,341
Total Common Stocks
(Identified cost $322,093,716)			387,508,345

Description	Shares		Value
Preferred Stock | 2.0%
Brazil | 2.0%
Banco Bradesco SA
(Identified cost $6,457,292)	415,685	$	8,175,973
Rights | 0.0%
Brazil | 0.0%
Banco Bradesco SA, expires 01/31/11 (Identified cost $0)	6,887		35,638
Short-Term Investment | 1.3%
State Street Institutional Treasury Money Market Fund (Identified cost $5,173,198)	5,173,198		5,173,198
Total Investments | 99.7%
(Identified cost $333,724,206) (b)		$	400,893,154
Cash and Other Assets in Excess of Liabilities | 0.3%			1,256,037
Net Assets | 100.0%		$	402,149,191

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

44  Annual Report

Description	Shares		Value
Lazard International Small Cap Equity Portfolio
Common Stocks | 97.0%
Australia | 4.7%
Cabcharge Australia, Ltd.		148,247	$	885,502
Fairfax Media, Ltd.		400,305		573,205
James Hardie Industries SE (a)		156,771		1,087,142
Macquarie Atlas Roads Group (a)		532,568		827,960
Total Australia				3,373,809
Austria | 1.6%
Andritz AG		12,244		1,125,518
Belgium | 4.6%
Arseus NV		76,842		1,168,544
EVS Broadcast Equipment SA		12,656		810,095
Kinepolis Group NV		4,911		334,625
Telenet Group Holding NV (a)		25,674		1,011,405
Total Belgium				3,324,669
Finland | 1.0%
Vacon Oyj		13,959		727,483
France | 5.4%
Faiveley Transport SA		8,040		664,722
Ingenico SA		21,201		767,626
Valeo SA (a)		20,685		1,173,790
Virbac SA		7,556		1,312,621
Total France				3,918,759
Germany | 7.2%
Asian Bamboo AG		13,824		728,760
CompuGroup Medical AG		85,463		1,263,669
CTS Eventim AG		24,488		1,512,308
Fielmann AG		7,437		706,994
Pfeiffer Vacuum Technology AG		8,425		990,733
Total Germany				5,202,464
Hong Kong | 3.7%
AAC Acoustic Technologies Holdings, Inc.		390,000		1,041,131
EVA Precision Industrial Holdings, Ltd.		712,000		695,255
Man Wah Holdings, Ltd.		572,400		941,137
Total Hong Kong				2,677,523

Description	Shares		Value
Ireland | 2.9%
C&C Group PLC		152,231	$	688,598
DCC PLC		37,567		1,183,021
Irish Life & Permanent Group Holdings PLC (a)		149,853		215,840
Total Ireland				2,087,459
Italy | 2.2%
DiaSorin SpA (a)		17,041		733,483
MARR SpA		71,739		831,627
Total Italy				1,565,110
Japan | 25.8%
Ain Pharmaciez, Inc.		26,000		914,596
Asahi Holdings, Inc.		51,500		1,090,387
Daiseki Co., Ltd.		39,300		820,464
Don Quijote Co., Ltd.		36,800		1,120,907
Dr. Ci:Labo Co., Ltd.		191		743,392
eAccess, Ltd.		1,672		1,011,149
JAFCO Co., Ltd.		23,900		694,716
JSR Corp.		40,400		753,861
Konami Corp.		42,600		905,624
Kurita Water Industries, Ltd.		24,800		781,357
Misumi Group, Inc.		40,400		1,006,641
Nomura Research Institute, Ltd.		26,300		585,668
NPC, Inc.		34,500		716,431
Rinnai Corp.		11,300		690,331
Roland DG Corp.		54,600		884,333
Sankyo Co., Ltd.		9,800		553,430
Santen Pharmaceutical Co., Ltd.		21,090		732,526
Shinko Plantech Co., Ltd.		78,500		725,151
Suruga Bank, Ltd.		109,300		1,017,746
Sysmex Corp.		17,100		1,185,774
Union Tool Co.		24,500		704,915
USS Co., Ltd.		12,090		988,762
Total Japan				18,628,161
Netherlands | 7.0%
Aalberts Industries NV		42,614		898,309
Fugro NV		19,670		1,616,529
Imtech NV		23,550		893,429
Koninklijke Vopak NV		16,730		790,295
Unit 4 NV		26,048		843,222
Total Netherlands				5,041,784

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

Annual Report  45

Description	Shares		Value
Lazard International Small Cap Equity Portfolio (concluded)
New Zealand | 0.9%
Telecom Corp. of New Zealand, Ltd.		404,278	$	683,579
Norway | 5.1%
BW Offshore, Ltd. (a)		353,540		987,600
Kongsberg Gruppen ASA		71,340		1,626,073
TGS Nopec Geophysical Co. ASA		48,660		1,096,613
Total Norway				3,710,286
Singapore | 1.4%
Ezra Holdings, Ltd.		701,000		983,208
Spain | 1.1%
Tecnicas Reunidas SA		12,112		770,661
Sweden | 8.1%
Duni AB		101,040		1,096,685
Elekta AB, B Shares		31,400		1,208,258
Getinge AB, B Shares		42,010		880,095
Indutrade AB		31,220		1,076,928
Loomis AB, B Shares		63,854		958,904
ORC Software AB		34,334		652,155
Total Sweden				5,873,025
Switzerland | 2.9%
Dufry Group (a)		9,733		1,309,531
Swissquote Group Holding SA		13,773		789,554
Total Switzerland				2,099,085
United Kingdom | 11.4%
Abcam PLC		124,950		623,390
Chemring Group PLC		20,663		935,543

Description	Shares		Value
CPP Group PLC		165,424	$	778,896
Dignity PLC		74,723		838,804
Hampson Industries PLC		1		0
IG Group Holdings PLC		163,917		1,303,371
Intertek Group PLC		32,402		896,693
Jupiter Fund Management PLC (a)		156,250		731,802
Melrose PLC		183,458		889,551
Rightmove PLC		41,978		509,839
TalkTalk Telecom Group PLC		274,745		685,368
Total United Kingdom				8,193,257
Total Common Stocks (Identified cost $53,642,154)				69,985,840
Preferred Stock | 1.4%
Germany | 1.4%
Fuchs Petrolub AG (Identified cost $486,240)		6,909		1,023,884
Short-Term Investment | 1.4%
State Street Institutional Treasury Money Market Fund (Identified cost $994,326)		994,326		994,326
Total Investments | 99.8% (Identified cost $55,122,720) (b)			$	72,004,050
Cash and Other Assets in Excess of Liabilities | 0.2%				113,577
Net Assets | 100.0%			$	72,117,627

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

46  Annual Report

Description	Shares		Value
Lazard Global Listed Infrastructure Portfolio
Common Stocks | 100.5%
Australia | 22.5%
ConnectEast Group		7,950,823	$	3,456,144
DUET Group		3,107,976		5,356,343
Macquarie Atlas Roads Group (a)		2,023,995		3,146,617
MAp Group		701,694		2,145,902
SP Ausnet		2,821,760		2,510,904
Spark Infrastructure Group (c)		3,796,400		4,407,158
Transurban Group		965,376		5,055,421
Total Australia				26,078,489
Austria | 1.6%
Flughafen Wien AG		27,330		1,870,975
France | 1.4%
Aeroports de Paris		14,300		1,128,774
Societe des Autoroutes Paris-Rhin-Rhone		6,600		454,120
Total France				1,582,894
Germany | 4.5%
Fraport AG		82,933		5,226,430
Italy | 23.7%
Atlantia SpA		341,294		6,964,207
Autostrada Torino-Milano SpA		391,562		5,258,605
Digital Multimedia Technologies SpA (a)		58,137		1,173,096
Hera SpA		2,122,178		4,392,757
Snam Rete Gas SpA		234,247		1,164,450
Societa Iniziative Autostradali e Servizi SpA		627,733		6,064,810
Terna SpA		559,775		2,363,766
Total Italy				27,381,691
Japan | 14.8%
East Japan Railway Co.		38,900		2,529,770
Osaka Gas Co., Ltd.		1,589,000		6,164,983
Toho Gas Co., Ltd.		164,000		820,101
Tokyo Gas Co., Ltd.		1,207,700		5,354,995
West Japan Railway Co.		615		2,298,959
Total Japan				17,168,808
Mexico | 2.5%
Grupo Aeroportuario del Centro Norte SAB de CV		1,230,100		2,350,636

Description	Shares		Value
Grupo Aeroportuario del Sureste SAB de CV, B Shares		101,000	$	572,388
Total Mexico				2,923,024
Portugal | 1.9%
Brisa Auto-Estradas de Portugal SA		321,600		2,242,886
South Korea | 2.5%
Macquarie Korea Infrastructure Fund		676,600		2,891,453
Spain | 7.6%
Enagas SA		121,543		2,422,463
Red Electrica Corporacion SA		134,367		6,320,322
Total Spain				8,742,785
Switzerland | 2.2%
Flughafen Zuerich AG		6,184		2,526,511
United States | 15.3%
American Electric Power Co., Inc.		30,700		1,104,586
American States Water Co.		28,200		972,054
California Water Service Group		62,600		2,333,102
Consolidated Edison, Inc.		22,870		1,133,666
CSX Corp.		35,100		2,267,811
Norfolk Southern Corp.		46,600		2,927,412
PG&E Corp.		47,500		2,272,400
SJW Corp.		7,800		206,466
Union Pacific Corp.		24,600		2,279,436
Wisconsin Energy Corp.		38,400		2,260,224
Total United States				17,757,157
Total Common Stocks (Identified cost $111,078,389)				116,393,103
Short-Term Investment | 0.3%
State Street Institutional Treasury Money Market Fund (Identified cost $302,293)		302,293		302,293
Total Investments | 100.8% (Identified cost $111,380,682) (b)			$	116,695,396
Liabilities in Excess of Cash and Other Assets | (0.8)%				(897,140	)
Net Assets | 100.0%			$	115,798,256

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

Annual Report  47

Lazard Global Listed Infrastructure Portfolio (concluded)

Forward Currency Contracts open at December 31, 2010:

Forward Currency Contracts	Counterparty		Expiration Date		Foreign Currency		U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contract
MXN		SSB		03/23/11		4,129,230	$	329,995	$	332,359	$	2,364	$	—
Forward Currency Sale Contracts
AUD		HSB		03/23/11		1,457,236		1,462,104		1,476,124		—		14,020
AUD		HSB		03/23/11		24,033,132		23,157,845		24,344,631		—		1,186,786
CHF		CIT		03/23/11		181,092		187,659		193,864		—		6,205
CHF		CIT		03/23/11		2,119,392		2,147,198		2,268,876		—		121,678
EUR		BRC		03/23/11		1,422,812		1,868,692		1,900,791		—		32,099
EUR		BRC		03/23/11		33,585,183		44,363,004		44,867,775		—		504,771
GBP		CSF		03/23/11		203,039		320,219		316,365		3,854		—
JPY		MEL		03/23/11		111,101,082		1,321,688		1,369,526		—		47,838
JPY		MEL		03/23/11		1,293,044,322		15,417,612		15,939,156		—		521,544
KRW		MEL		03/30/11		3,430,345,144		2,955,920		3,009,092		—		53,172
MXN		SSB		03/23/11		42,489,524		3,386,224		3,419,961		—		33,737
Total Forward Currency Sale Contracts							$	96,588,165	$	99,106,161		3,854		2,521,850
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts											$	6,218	$	2,521,850

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

48  Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio
Common Stocks | 93.4%
Brazil | 17.7%
Banco do Brasil SA		36,038,210	$	682,120,818
Cielo SA		60,948,600		493,830,524
Companhia de Concessoes Rodoviarias		5,293,500		149,557,319
Companhia Energetica de Minas Gerais SA Sponsored ADR		12,709,754		210,854,819
Companhia Siderurgica Nacional SA Sponsored ADR		16,658,688		277,700,329
Natura Cosmeticos SA		8,599,500		247,054,310
Redecard SA		35,629,220		451,804,266
Souza Cruz SA		3,260,065		177,516,431
Vale SA Sponsored ADR		18,178,700		628,437,659
Total Brazil				3,318,876,475
Canada | 1.7%
First Quantum Minerals, Ltd.		2,964,000		321,947,099
China | 2.5%
China Construction Bank Corp., Class H		203,563,220		183,324,226
NetEase.com, Inc. Sponsored ADR (a)		4,998,075		180,680,411
Weichai Power Co., Ltd., Class H		17,274,500		106,787,737
Total China				470,792,374
Egypt | 3.1%
Commercial International Bank		24,525,862		200,051,605
Eastern Co.		3,463,531		71,597,540
Egyptian Company for Mobile Services		2,469,675		69,814,585
Orascom Construction Industries		4,810,893		238,514,213
Total Egypt				579,977,943
France | 0.7%
CFAO SA		2,887,914		125,691,514
Hong Kong | 0.1%
China High Speed Transmission Equipment Group Co., Ltd.		1,943,000		2,999,691
Shougang Concord International Enterprises Co., Ltd. (a)		32,311,400		4,697,391
Total Hong Kong				7,697,082

Description	Shares		Value
Hungary | 1.2%
OTP Bank Nyrt (a)		9,323,769	$	224,965,173
India | 4.8%
Bank of India		18,705,460		189,920,135
Infosys Technologies, Ltd. Sponsored ADR		1,836,408		139,713,921
Jindal Steel & Power, Ltd.		12,056,538		191,923,152
Punjab National Bank, Ltd.		13,756,227		375,954,315
Total India				897,511,523
Indonesia | 4.8%
PT Bank Mandiri Tbk		164,053,350		118,351,473
PT Semen Gresik (Persero) Tbk		133,367,500		139,880,452
PT Tambang Batubara Bukit Asam Tbk		57,529,500		146,537,406
PT Telekomunikasi Indonesia Tbk Sponsored ADR		9,977,336		355,692,029
PT United Tractors Tbk		52,839,251		139,575,380
Total Indonesia				900,036,740
Malaysia | 0.5%
British American Tobacco Malaysia Berhad		6,763,800		98,709,583
Mexico | 6.6%
America Movil SAB de CV ADR, Series L		4,769,635		273,490,871
Desarrolladora Homex SAB de CV ADR (a)		3,173,530		107,297,049
Fomento Economico Mexicano SAB de CV Sponsored ADR		3,420,059		191,249,699
Grupo Mexico SAB de CV, Series B		76,857,393		316,391,082
Grupo Televisa SA Sponsored ADR (a)		9,266,800		240,288,124
Kimberly-Clark de Mexico SAB de CV, Series A		18,617,965		113,592,200
Total Mexico				1,242,309,025
Pakistan | 1.3%
Oil & Gas Development Co., Ltd.		52,465,349		104,226,670
Pakistan Petroleum, Ltd.		52,306,871		132,543,292
Total Pakistan				236,769,962
Philippines | 1.9%
Philippine Long Distance Telephone Co. Sponsored ADR		6,205,963		361,621,464

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

Annual Report  49

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio (concluded)
Russia | 6.4%
Magnit OJSC Sponsored GDR (c), (d)		4,992,265	$	146,273,364
Mobile TeleSystems Sponsored ADR		12,423,065		259,269,367
OAO LUKOIL Sponsored ADR		4,335,250		245,154,097
Oriflame Cosmetics SA SDR		2,685,382		141,343,250
TNK-BP Holding		56,991,652		151,027,878
Uralkali Sponsored GDR		7,025,885		257,990,497
Total Russia				1,201,058,453
South Africa | 11.1%
Bidvest Group, Ltd.		1,865,361		44,386,389
Kumba Iron Ore, Ltd.		5,399,240		347,928,255
Massmart Holdings, Ltd.		7,794,028		173,568,715
Murray & Roberts Holdings, Ltd.		29,539,391		180,128,628
Nedbank Group, Ltd.		8,512,546		168,441,802
Pretoria Portland Cement Co., Ltd.		35,401,233		187,821,342
Sanlam, Ltd.		61,564,873		260,932,259
Shoprite Holdings, Ltd.		10,878,859		164,565,966
Standard Bank Group, Ltd.		10,397,429		169,752,332
Tiger Brands, Ltd.		6,161,508		181,108,583
Truworths International, Ltd.		18,340,307		199,481,290
Total South Africa				2,078,115,561
South Korea | 13.5%
Hite Brewery Co., Ltd. (a)		807,290		85,715,433
Hyundai Mobis (a)		872,995		218,844,900
KB Financial Group, Inc. (a)		2,965,570		156,784,034
Korea Life Insurance Co., Ltd.		34,438,343		241,241,367
KT&G Corp. (a)		5,054,970		288,180,949
NHN Corp. (a)		1,745,827		349,196,166
Samsung Electronics Co., Ltd.		520,369		435,131,008
Shinhan Financial Group Co., Ltd. (a)		12,002,550		559,463,296
Woongjin Coway Co., Ltd. (a)		5,333,984		189,408,367
Total South Korea				2,523,965,520
Taiwan | 7.5%
Advanced Semiconductor Engineering, Inc.		136,737,069		158,279,495
Delta Electronics, Inc.		31,793,000		155,385,677
Hon Hai Precision Industry Co., Ltd.		67,192,636		270,784,722
HTC Corp.		4,641,367		143,269,264
MediaTek, Inc.		20,884,421		299,049,809

Description	Shares		Value
Taiwan Semiconductor Manufacturing Co., Ltd.		158,874,284	$	386,880,255
Total Taiwan				1,413,649,222
Thailand | 1.7%
Banpu Public Co., Ltd.		7,099,900		185,593,671
Kasikornbank Public Co., Ltd.		31,113,200		134,691,411
Total Thailand				320,285,082
Turkey | 6.3%
Akbank TAS		37,684,131		209,410,521
Koc Holding AS		27,738,187		135,097,906
Turkcell Iletisim Hizmetleri AS		58,836,999		402,027,422
Turkiye Is Bankasi AS, C Shares		123,579,708		440,212,690
Total Turkey				1,186,748,539
Total Common Stocks
(Identified cost $13,404,280,691)				17,510,728,334
Preferred Stocks | 2.7%
Brazil | 2.7%
Companhia de Bebidas das Americas SA Sponsored ADR		202,978		6,298,407
Eletropaulo Metropolitana SA		2,088,400		40,396,701
Ultrapar Participacoes SA		2,104,200		133,223,747
Usinas Siderurgicas de Minas Gerais SA, A Shares		26,082,200		301,045,152
Vale Fertilizantes SA (a)		1,735,200		19,850,270
Total Brazil				500,814,277
Total Preferred Stocks
(Identified cost $485,029,408)				500,814,277
Short-Term Investment | 3.4%
State Street Institutional Treasury
Money Market Fund (Identified cost $647,514,542)		647,514,542		647,514,542
Total Investments | 99.5%
(Identified cost $14,536,824,641) (b)			$	18,659,057,153
Cash and Other Assets in Excess of Liabilities | 0.5%				89,234,771
Net Assets | 100.0%			$	18,748,291,924

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

50  Annual Report

Description	Shares		Value
Lazard Developing Markets Equity Portfolio
Common Stocks | 93.7%
Brazil | 12.6%
Banco Bradesco SA Sponsored ADR		125,133	$	2,538,949
Cia Hering		196,564		3,197,125
Cyrela Brazil Realty SA		257,360		3,387,540
Fibria Celulose SA Sponsored ADR (a)		99,449		1,591,184
Itau Unibanco Holding SA ADR		104,206		2,501,986
MRV Engenharia e Participacoes SA		325,195		3,058,008
Totvs SA		24,689		2,513,519
Ultrapar Participacoes SA Sponsored ADR		19,589		1,265,841
Vale SA Sponsored ADR		56,815		1,964,094
Total Brazil				22,018,246
China | 11.4%
Agricultural Bank of China, Ltd., Class H		4,805,500		2,404,976
China Construction Bank Corp., Class H		2,555,849		2,301,737
China Merchants Bank Co., Ltd., Class H		792,406		2,008,336
China National Materials Co., Ltd.,
Class H		2,157,890		1,740,682
China Petroleum & Chemical Corp. ADR		27,535		2,634,824
Hidili Industry International
Development, Ltd.		3,121,900		2,626,753
NetEase.com, Inc. Sponsored ADR (a)		45,485		1,644,283
Parkson Retail Group, Ltd.		733,950		1,129,328
Ping An Insurance Group Co. of China,
Ltd., Class H		309,500		3,452,250
Total China				19,943,169
Colombia | 2.1%
Pacific Rubiales Energy Corp.		107,835		3,660,295
Egypt | 1.4%
Commercial International Bank
Sponsored GDR		298,912		2,495,915
Hong Kong | 4.3%
AAC Acoustic Technologies Holdings, Inc.		637,700		1,702,382
China State Construction International
Holdings, Ltd.		2,234,450		2,112,908
Geely Automobile Holdings, Ltd.		5,461,700		2,382,045
Man Wah Holdings, Ltd.		792,800		1,303,518
Total Hong Kong				7,500,853

Description	Shares		Value
India | 3.7%
ICICI Bank, Ltd. Sponsored ADR	56,630	$	2,867,743
Shriram Transport Finance Co., Ltd.	203,046		3,564,601
Total India			6,432,344
Indonesia | 2.9%
PT Bank Rakyat Indonesia (Persero) Tbk	1,897,800		2,211,643
PT Perusahaan Gas Negara (Persero) Tbk	5,904,860		2,900,000
Total Indonesia			5,111,643
Kazakhstan | 4.1%
Halyk Savings Bank of Kazakhstan
JSC GDR (a)	370,626		3,724,791
KazMunaiGas Exploration Production GDR	80,795		1,602,165
Zhaikmunai LP GDR (a)	154,899		1,905,258
Total Kazakhstan			7,232,214
Luxembourg | 1.6%
Millicom International Cellular SA	28,508		2,725,365
Malaysia | 1.5%
Genting Berhad	714,800		2,591,686
Mexico | 4.6%
Corporacion GEO SAB de CV,
Series B (a)	1,298,406		4,762,574
Grupo Financiero Banorte SAB de CV	692,057		3,289,372
Total Mexico			8,051,946
Philippines | 1.9%
SM Investments Corp.	267,507		3,315,597
Qatar | 1.5%
Qatar Electricity & Water Co.	74,239		2,601,372
Russia | 13.2%
Eurasia Drilling Co., Ltd. GDR	67,250		2,185,625
Gazprom OAO Sponsored ADR	101,465		2,581,269
Globaltrans Investment PLC
Sponsored GDR	96,152		1,634,584
Rosneft Oil Co. GDR	451,388		3,231,938
Sberbank	1,027,014		3,499,037
TMK OAO GDR (a)	89,200		1,842,872
Uralkali Sponsored GDR	59,990		2,202,833
VTB Bank OJSC GDR	474,186		3,124,886
X5 Retail Group NV GDR (a)	59,230		2,739,387
Total Russia			23,042,431

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

Annual Report  51

Description	Shares		Value
Lazard Developing Markets Equity Portfolio (concluded)
South Africa | 6.8%
Clicks Group, Ltd.	402,146	$	2,645,770
Exxaro Resources, Ltd. Sponsored ADR	178,680		3,671,874
MTN Group, Ltd.	141,018		2,877,516
Standard Bank Group, Ltd.	160,471		2,619,910
Total South Africa			11,815,070
South Korea | 6.6%
Hyundai Mobis (a)	13,010		3,261,384
LG Uplus Corp. (a)	215,275		1,360,051
Samsung Electronics Co., Ltd.	4,480		3,746,163
Samsung Engineering Co., Ltd. (a)	18,173		3,074,470
Total South Korea			11,442,068
Taiwan | 7.8%
RichTek Technology Corp.	211,900		1,766,045
Synnex Technology International Corp.	1,150,989		3,106,780
Tripod Technology Corp.	695,000		2,836,589
Wistron Corp. GDR (d)	161,093		3,281,916
Yuanta Financial Holding Co., Ltd.	3,429,000		2,563,826
Total Taiwan			13,555,156
Thailand | 1.1%
PTT Exploration & Production Public
Co., Ltd. (d)	336,250		1,873,943
Turkey | 2.6%
Tofas Turk Otomobil Fabrikasi AS	475,509		2,451,458
Turkiye Garanti Bankasi AS ADR	421,740		2,171,961
Total Turkey			4,623,419

Description	Shares		Value
United Kingdom | 1.0%
Cairn Energy PLC (a)	259,331	$	1,698,156
United States | 1.0%
NII Holdings, Inc. (a)	37,977		1,696,053
Total Common Stocks
(Identified cost $146,870,182)			163,426,941
Preferred Stock | 1.0%
Brazil | 1.0%
Gerdau SA Sponsored ADR
(Identified cost $1,611,397)	119,850		1,676,701
Short-Term Investment | 3.8%
State Street Institutional Treasury
Money Market Fund
(Identified cost $6,704,173)	6,704,173		6,704,173
Total Investments | 98.5%
(Identified cost $155,185,752) (b)		$	171,807,815
Cash and Other Assets in Excess
of Liabilities | 1.5%			2,574,211
Net Assets | 100.0%		$	174,382,026

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

52  Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio
Common Stocks | 94.7%
Brazil | 17.1%
Banco Bradesco SA Sponsored ADR		46,900	$	951,601
Banco do Brasil SA		55,325		1,047,176
Cia Hering		46,365		754,129
Companhia Energetica de Minas Gerais SA Sponsored ADR		53,545		888,311
Companhia Siderurgica Nacional SA Sponsored ADR		42,310		705,308
MRV Engenharia e Participacoes SA		102,900		967,632
Natura Cosmeticos SA		20,060		576,302
Redecard SA		89,810		1,138,856
Souza Cruz SA		11,065		602,509
Totvs SA		9,685		986,003
Ultrapar Participacoes SA Sponsored ADR		10,800		697,896
Vale SA Sponsored ADR		50,390		1,606,306
Total Brazil				10,922,029
Canada | 0.9%
First Quantum Minerals, Ltd.		5,210		565,906
China | 4.5%
China Construction Bank Corp., Class H		809,461		728,981
China Petroleum & Chemical Corp. ADR		6,600		631,554
Hidili Industry International Development, Ltd.		990,360		833,285
Ping An Insurance Group Co. of China, Ltd., Class H		61,000		680,411
Total China				2,874,231
Colombia | 1.5%
Pacific Rubiales Energy Corp.		27,900		947,023
Egypt | 2.8%
Commercial International Bank		151,118		1,232,633
Orascom Construction Industries		11,556		572,923
Total Egypt				1,805,556
Hong Kong | 2.3%
AAC Acoustic Technologies Holdings, Inc.		233,640		623,717
China State Construction International Holdings, Ltd.		910,087		860,583
Total Hong Kong				1,484,300

Description	Shares		Value
Hungary | 0.9%
OTP Bank Nyrt (a)		24,277	$	585,759
India | 1.7%
ICICI Bank, Ltd. Sponsored ADR		21,600		1,093,824
Indonesia | 4.7%
PT Bank Rakyat Indonesia (Persero) Tbk		613,809		715,316
PT Perusahaan Gas Negara (Persero) Tbk		2,043,565		1,003,637
PT Telekomunikasi Indonesia Tbk Sponsored ADR		25,340		903,371
PT United Tractors Tbk		145,000		383,019
Total Indonesia				3,005,343
Kazakhstan | 1.5%
Halyk Savings Bank of Kazakhstan
JSC GDR (a)		98,251		987,423
Malaysia | 1.5%
Genting Berhad		262,520		951,832
Mexico | 7.3%
America Movil SAB de CV ADR, Series L		13,519		775,179
Corporacion GEO SAB de CV, Series B (a)		284,600		1,043,917
Fomento Economico Mexicano SAB de CV Sponsored ADR		5,015		280,439
Grupo Financiero Banorte SAB de CV		165,900		788,529
Grupo Mexico SAB de CV, Series B		157,605		648,797
Grupo Televisa SA Sponsored ADR (a)		22,251		576,968
Kimberly-Clark de Mexico SAB de CV, Series A		91,260		556,797
Total Mexico				4,670,626
Philippines | 2.0%
Philippine Long Distance Telephone Co. Sponsored ADR		7,585		441,978
SM Investments Corp.		67,208		833,005
Total Philippines				1,274,983
Qatar | 1.4%
Qatar Electricity & Water Co.		24,711		865,886

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

Annual Report  53

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio (concluded)
Russia | 11.3%
Eurasia Drilling Co., Ltd. GDR		26,387	$	857,577
Gazprom OAO Sponsored ADR		33,500		852,240
Mobile TeleSystems Sponsored ADR		44,165		921,724
OAO LUKOIL Sponsored ADR		14,655		838,559
Oriflame Cosmetics SA SDR		13,241		696,931
Rosneft Oil Co. GDR		105,710		756,884
Sberbank		283,929		967,346
Uralkali Sponsored GDR		17,404		639,075
X5 Retail Group NV GDR (a)		14,474		669,422
Total Russia				7,199,758
South Africa | 7.6%
Clicks Group, Ltd.		113,334		745,639
Exxaro Resources, Ltd.		51,941		1,074,223
Kumba Iron Ore, Ltd.		9,957		641,631
Standard Bank Group, Ltd.		79,547		1,298,714
Tiger Brands, Ltd.		17,671		519,413
Truworths International, Ltd.		52,198		567,740
Total South Africa				4,847,360
South Korea | 7.8%
Hyundai Mobis (a)		2,125		532,701
Korea Life Insurance Co., Ltd.		80,762		565,740
KT&G Corp. (a)		10,350		590,048
NHN Corp. (a)		4,359		871,877
Samsung Electronics Co., Ltd.		1,055		882,188
Samsung Engineering Co., Ltd. (a)		5,803		981,739
Shinhan Financial Group Co., Ltd. (a)		12,710		592,439
Total South Korea				5,016,732
Taiwan | 8.6%
Delta Electronics, Inc.		105,000		513,179
Hon Hai Precision Industry Co., Ltd.		185,256		746,577
MediaTek, Inc.		50,000		715,964
Synnex Technology International Corp.		354,190		956,039

Description	Shares		Value
Taiwan Semiconductor Manufacturing Co., Ltd.		418,000	$	1,017,886
Tripod Technology Corp.		194,240		792,776
Wistron Corp.		375,110		764,205
Total Taiwan				5,506,626
Thailand | 1.8%
Banpu Public Co., Ltd.		18,030		471,310
PTT Exploration & Production Public Co., Ltd. (d)		123,280		687,047
Total Thailand				1,158,357
Turkey | 6.5%
Koc Holding AS ADR		22,846		558,585
Tofas Turk Otomobil Fabrikasi AS		150,437		775,569
Turkcell Iletisim Hizmetleri AS ADR		54,715		937,268
Turkiye Garanti Bankasi AS		163,914		830,186
Turkiye Is Bankasi AS, C Shares		293,660		1,046,069
Total Turkey				4,147,677
United States | 1.0%
NII Holdings, Inc. (a)		14,300		638,638
Total Common Stocks
(Identified cost $58,200,263)				60,549,869
Short-Term Investment | 5.3%
State Street Institutional Treasury Money Market Fund
(Identified cost $3,366,982)		3,366,982		3,366,982
Total Investments | 100.0%
(Identified cost $61,567,245) (b)			$	63,916,851
Cash and Other Assets in Excess of Liabilities | 0.0%				30,104
Net Assets | 100.0%			$	63,946,955

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

54  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio
Corporate Bonds | 95.1%
Aerospace & Defense | 0.4%
BE Aerospace, Inc., 8.50%, 07/01/18	$	525	$	574,875
Apparel & Textiles | 1.0%
Levi Strauss & Co., 7.625%, 05/15/20		1,300		1,342,250
Automotive | 4.4%
ArvinMeritor, Inc., 8.125%, 09/15/15		215		224,944
Ford Motor Credit Co., 7.00%, 10/01/13		1,250		1,340,125
GMAC LLC, 6.75%, 12/01/14		165		173,662
Navistar International Corp., 8.25%, 11/01/21		825		886,875
Pinafore LLC, 9.00%, 10/01/18 (c)		1,200		1,296,000
The Goodyear Tire & Rubber Co., 10.50%, 05/15/16		950		1,083,000
TRW Automotive, Inc., 8.875%, 12/01/17 (c)		1,000		1,120,000
				6,124,606
Building & Materials | 3.3%
Legrand SA, 8.50%, 02/15/25		925		1,082,696
Masco Corp., 6.125%, 10/03/16		1,500		1,532,955
Owens Corning, Inc., 9.00%, 06/15/19		725		850,565
USG Corp.: 9.75%, 08/01/14 (c)		450		474,750
9.75%, 01/15/18		675		654,750
				4,595,716
Cable Television | 5.6%
Cablevision Systems Corp., 7.75%, 04/15/18		1,000		1,047,500
Cequel Communications Holdings LLC, 8.625%, 11/15/17 (c)		900		940,500

Description	Principal Amount (000)		Value
EchoStar DBS Corp., 6.625%, 10/01/14	$	810	$	840,375
Insight Communications Co., Inc., 9.375%, 07/15/18 (c)		1,000		1,065,000
Kabel Deutschland GmbH, 10.625%, 07/01/14		82		84,904
Mediacom Broadband LLC, 8.50%, 10/15/15		875		879,375
Mediacom LLC, 9.125%, 08/15/19		175		178,500
Unitymedia Hessen GmbH & Co., 8.125%, 12/01/17 (c)		1,250		1,306,250
Videotron Ltee, 6.875%, 01/15/14		525		531,563
Virgin Media Finance PLC, 9.125%, 08/15/16		900		958,500
				7,832,467
Chemicals | 1.4%
Lyondell Chemical Co., 8.00%, 11/01/17 (c)		899		994,519
Mosaic Global Holdings, Inc., 7.30%, 01/15/28		775		886,296
PolyOne Corp., 7.375%, 09/15/20		100		103,625
				1,984,440
Computer Services | 2.4%
First Data Corp., 8.875%, 08/15/20 (c)		850		896,750
SunGard Data Systems, Inc.: 10.25%, 08/15/15		564		592,905
7.375%, 11/15/18 (c)		750		753,750
Terremark Worldwide, Inc., 12.00%, 06/15/17		1,000		1,145,000
				3,388,405
Diversified | 2.3%
Amsted Industries, Inc., 8.125%, 03/15/18 (c)		1,100		1,167,375
General Cable Corp., 7.125%, 04/01/17		489		503,670
Leucadia National Corp., 7.00%, 08/15/13		950		1,017,687
SPX Corp., 7.625%, 12/15/14		535		581,813
				3,270,545

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

Annual Report  55

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Electric Generation | 4.0%
AES Corp., 7.75%, 03/01/14	$	900	$	960,750
Calpine Corp., 7.875%, 07/31/20 (c)		1,150		1,164,375
Edison Mission Energy, 7.50%, 06/15/13		675		661,500
GenOn Energy, Inc., 6.75%, 12/15/14		525		535,500
GenOn Escrow Corp.: 9.50%, 10/15/18 (c)		650		645,937
9.875%, 10/15/20 (c)		475		471,438
NRG Energy, Inc.: 7.375%, 01/15/17		600		618,000
8.25%, 09/01/20 (c)		525		538,125
				5,595,625
Electronics | 1.8%
Amkor Technologies, Inc., 9.25%, 06/01/16		925		980,500
Freescale Semiconductor, Inc.: 8.875%, 12/15/14		225		235,125
9.25%, 04/15/18 (c)		900		990,000
NXP BV, 7.875%, 10/15/14		250		260,000
				2,465,625
Energy Exploration & Production | 2.9%
ATP Oil & Gas Corp., 11.875%, 05/01/15 (c)		675		637,875
Chesapeake Energy Corp., 9.50%, 02/15/15		1,325		1,493,937
Denbury Resources, Inc., 9.75%, 03/01/16		590		657,850
OPTI Canada, Inc., 8.25%, 12/15/14		325		231,563
Plains Exploration & Production Co., 7.75%, 06/15/15		950		990,375
				4,011,600
Energy Services | 5.1%
Calfrac Holdings LP, 7.50%, 12/01/20 (c)		1,000		1,012,500
Citgo Petroleum Corp., 11.50%, 07/01/17 (c)		1,125		1,260,000

Description		Principal Amount (000)		Value
Compagnie Generale de Geophysique, 7.50%, 05/15/15	$	875	$	890,312
Expro Finance Luxembourg SCA, 8.50%, 12/15/16 (c)		700		668,500
Frac Tech Services LLC, 7.125%, 11/15/18 (c)		1,000		1,015,000
Offshore Group Investments, Ltd., 11.50%, 08/01/15 (c)		825		895,125
Tesoro Corp., 6.50%, 06/01/17		1,300		1,303,250
				7,044,687
Environmental | 0.7%
Browning-Ferris Industries, Inc.,
7.40%, 09/15/35		775		916,996
Financial Services | 1.6%
Finance One PLC, 0.00%, 01/03/11 (a), (e)		20,000		0
Icahn Enterprises LP:
7.75%, 01/15/16		500		500,000
8.00%, 01/15/18		600		600,000
International Lease Finance Corp.:
8.625%, 09/15/15 (c)		500		537,500
8.75%, 03/15/17 (c)		500		536,250
Morgan Guarantee Trust, 0.00%, 07/31/14 (a), (e)		10,569		0
				2,173,750
Food & Beverages | 1.1%
Constellation Brands, Inc., 7.25%, 05/15/17		700		741,125
Dean Foods Co., 7.00%, 06/01/16		800		734,000
				1,475,125
Forest & Paper Products | 1.7%
ABI Escrow Corp., 10.25%, 10/15/18 (c)		1,000		1,095,000
Georgia-Pacific Corp., 9.50%, 12/01/11		500		535,000
Smurfit Capital Funding PLC, 7.50%, 11/20/25		750		691,875
				2,321,875
Gaming | 5.7%
Ameristar Casinos, Inc., 9.25%, 06/01/14		990		1,059,300

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

56  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Marina District Finance Co., Inc.:
9.50%, 10/15/15 (c)	$	500	$	491,250
9.875%, 08/15/18 (c)		500		492,500
MGM Resorts International, 10.375%, 05/15/14		900		1,010,250
Peninsula Gaming LLC:
8.375%, 08/15/15		625		657,031
10.75%, 08/15/17		225		242,438
Penn National Gaming, Inc., 8.75%, 08/15/19		825		909,562
Pinnacle Entertainment, Inc., 8.625%, 08/01/17		800		872,000
Scientific Games Corp.:
7.875%, 06/15/16 (c)		525		523,688
8.125%, 09/15/18 (c)		350		352,625
9.25%, 06/15/19		250		258,125
Wynn Las Vegas LLC, 7.75%, 08/15/20		1,000		1,082,500
				7,951,269
Gas Utilities | 5.4%
Copano Energy LLC, 7.75%, 06/01/18		1,200		1,224,000
El Paso Corp., 7.00%, 06/15/17		650		685,955
Energy Transfer Equity LP, 7.50%, 10/15/20		1,250		1,287,500
Ferrellgas Partners LP:
8.625%, 06/15/20		800		860,000
6.50%, 05/01/21 (c)		500		487,500
Inergy LP, 8.75%, 03/01/15		525		559,125
MarkWest Energy Partners LP, 8.50%, 07/15/16		1,000		1,055,000
Niska Gas Storage US LLC, 8.875%, 03/15/18 (c)		750		802,500
The Williams Cos., Inc., 8.75%, 03/15/32		407		497,939
				7,459,519
Health Services | 7.4%
Apria Healthcare Group, Inc., 11.25%, 11/01/14		550		600,875
Biomet, Inc., 10.00%, 10/15/17		925		1,010,562

Description	Principal Amount (000)		Value
Community Health Systems, Inc., 8.875%, 07/15/15	$	920	$	966,000
Fresenius US Finance II, Inc., 9.00%, 07/15/15 (c)		525		601,125
HCA, Inc., 9.25%, 11/15/16		925		986,859
Health Management Associates, Inc., 6.125%, 04/15/16		1,000		1,010,000
HealthSouth Corp., 10.75%, 06/15/16		515		554,913
Lantheus Medical Imaging, Inc., 9.75%, 05/15/17 (c)		375		391,875
Service Corp. International, 6.75%, 04/01/16		750		763,125
Tenet Healthcare Corp., 8.875%, 07/01/19		1,000		1,130,000
The Cooper Cos., Inc., 7.125%, 02/15/15		525		540,750
Vanguard Health Holding LLC, 8.00%, 02/01/18		1,000		1,025,000
Ventas Realty LP, 6.50%, 06/01/16		650		675,968
				10,257,052
Hotels | 1.0%
Host Hotels & Resorts, Inc., 7.125%, 11/01/13		353		358,295
Wyndham Worldwide Corp., 6.00%, 12/01/16		1,000		1,046,435
				1,404,730
Leisure & Entertainment | 2.2%
AMC Entertainment, Inc.:
8.00%, 03/01/14		497		501,970
8.75%, 06/01/19		200		213,500
Live Nation Entertainment, Inc., 8.125%, 05/15/18 (c)		135		136,688
Royal Caribbean Cruises, Ltd., 7.25%, 06/15/16		330		355,575
Speedway Motorsports, Inc., 6.75%, 06/01/13		875		881,562
Ticketmaster Entertainment, Inc., 10.75%, 08/01/16		850		920,125
				3,009,420
Machinery | 1.4%
Case New Holland, Inc., 7.75%, 09/01/13		200		215,000

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

Annual Report  57

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Terex Corp., 10.875%, 06/01/16	$	550	$	638,688
The Manitowoc Co., Inc, 8.50%, 11/01/20		1,000		1,062,500
				1,916,188
Media | 3.4%
Clear Channel Worldwide Holdings, Inc., 9.25%, 12/15/17		1,100		1,204,500
Lamar Media Corp., 7.875%, 04/15/18		1,000		1,062,500
LIN Television Corp., 8.375%, 04/15/18		1,400		1,484,000
WMG Acquisition Corp., 9.50%, 06/15/16		945		1,013,512
				4,764,512
Metals & Mining | 3.0%
Alcoa, Inc., 5.72%, 02/23/19		650		659,225
Arch Western Finance LLC, 6.75%, 07/01/13		367		370,670
Century Aluminum Co., 8.00%, 05/15/14		202		212,353
FMG Resources (August 2006) Property, Ltd., 7.00%, 11/01/15 (c)		1,050		1,076,250
Freeport-McMoRan Copper & Gold, Inc.:
8.25%, 04/01/15		650		684,937
8.375%, 04/01/17		100		110,625
Massey Energy Co., 6.875%, 12/15/13		1,000		1,012,500
				4,126,560
Packaging | 0.8%
Reynolds Group, 7.75%, 10/15/16 (c)		1,000		1,057,500
Pharmaceutical & Biotechnology | 1.7%
Mylan, Inc.:
7.625%, 07/15/17 (c)		400		425,500
7.875%, 07/15/20 (c)		650		700,375
Warner Chilcott Co. LLC, 7.75%, 09/15/18 (c)		1,250		1,262,500
				2,388,375

Description	Principal Amount (000)		Value
Printing & Publishing | 1.5%
Deluxe Corp., 7.375%, 06/01/15	$	1,005	$	1,047,713
The McClatchy Co., 11.50%, 02/15/17		900		1,011,375
				2,059,088
Real Estate | 1.9%
CB Richard Ellis Services, Inc., 11.625%, 06/15/17		975		1,129,781
DuPont Fabros Technology LP, 8.50%, 12/15/17		1,000		1,070,000
Forest City Enterprises, Inc., 7.625%, 06/01/15		475		444,125
				2,643,906
Restaurants | 1.5%
Landry’s Restaurants, Inc., 11.625%, 12/01/15		1,075		1,147,563
Wendy’s/Arby’s Restaurants LLC, 10.00%, 07/15/16		825		895,125
				2,042,688
Retail | 3.8%
AutoNation, Inc., 6.75%, 04/15/18		175		180,688
Ingles Markets, Inc., 8.875%, 05/15/17		1,025		1,096,750
QVC, Inc., 7.50%, 10/01/19 (c)		1,000		1,052,500
Saks, Inc., 9.875%, 10/01/11		585		612,787
Stater Brothers Holdings, Inc., 7.375%, 11/15/18 (c)		1,400		1,435,000
SuperValu, Inc., 8.00%, 05/01/16		1,000		957,500
				5,335,225
Steel-Producers | 1.7%
AK Steel Corp., 7.625%, 05/15/20		1,000		1,002,500
Steel Dynamics, Inc.:
7.375%, 11/01/12		540		569,700
7.75%, 04/15/16		264		277,860
United States Steel Corp., 6.05%, 06/01/17		475		468,469
				2,318,529

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

58  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (concluded)
Support Services | 4.0%
ARAMARK Corp., 8.50%, 02/01/15	$	600	$	627,000
Avis Budget Car Rental LLC:
7.625%, 05/15/14		341		349,525
7.75%, 05/15/16		410		418,200
Expedia, Inc., 8.50%, 07/01/16		375		410,625
Hertz Corp.:
8.875%, 01/01/14		650		664,625
7.50%, 10/15/18 (c)		1,000		1,037,500
United Rentals North America, Inc., 9.25%, 12/15/19		1,000		1,112,500
West Corp., 11.00%, 10/15/16		850		922,250
				5,542,225
Telecommunications | 7.2%
Cincinnati Bell, Inc., 8.25%, 10/15/17		850		841,500
Citizens Communications Co., 6.25%, 01/15/13		1,000		1,055,000
Cricket Communications, Inc., 7.75%, 05/15/16		750		778,125
Equinix, Inc., 8.125%, 03/01/18		1,000		1,045,000
GCI, Inc., 8.625%, 11/15/19		1,000		1,082,500
Intelsat Jackson Holdings, Ltd., 11.25%, 06/15/16		350		377,125
Level 3 Financing, Inc., 9.25%, 11/01/14		650		645,125
Qwest Corp., 7.875%, 09/01/11		800		824,000
Sprint Capital Corp., 6.90%, 05/01/19		1,225		1,209,687
Wind Acquisition Finance SA, 11.75%, 07/15/17 (c)		800		902,000
Windstream Corp., 8.625%, 08/01/16		1,150		1,210,375
				9,970,437

Description	Principal Amount (000)		Value
Transportation | 1.8%
Hapag-Lloyd AG, 9.75%, 10/15/17 (c)	$	1,000	$	1,082,500
Kansas City Southern Railway Co., 13.00%, 12/15/13		325		386,750
Teekay Corp., 8.50%, 01/15/20		1,000		1,088,750
				2,558,000
Total Corporate Bonds
(Identified cost $125,689,484)				131,923,810

Description	Shares		Value
Warrant | 0.0%
Cable Television | 0.0%
Ono Finance PLC, expires 03/16/11 (Identified cost $64,841) (a), (c)		470	$	5
Short-Term Investment | 3.1%
State Street Institutional Treasury Money Market Fund (Identified cost $4,274,003)		4,274,003		4,274,003
Total Investments | 98.2%
(Identified cost $130,028,328) (b)			$	136,197,818
Cash and Other Assets in Excess of Liabilities | 1.8%				2,495,371
Net Assets | 100.0%			$	138,693,189

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

Annual Report  59

Description	Shares		Value
Lazard Capital Allocator Opportunistic Strategies Portfolio
Exchange-Traded Funds | 83.4%
Industrial Select Sector SPDR Fund		143,600	$	5,011,640
IQ ARB Merger Arbitrage ETF		96,200		2,376,140
IQ Canada Small Cap ETF		65,500		2,228,310
iShares FTSE China 25 Index Fund		105,200		4,533,068
iShares MSCI Brazil Index Fund		132,900		10,286,460
iShares MSCI Taiwan Index Fund		552,500		8,630,050
iShares S&P Global Consumer Staples
Index Fund		196,300		12,262,861
iShares S&P Global Materials Index Fund		170,200		12,467,150
Market Vectors Agribusiness ETF		115,500		6,183,870
PowerShares DB Oil Fund (a)		405,700		11,448,854
PowerShares Dynamic Oil & Gas
Services Portfolio		233,200		5,090,756
PowerShares Global Listed Private
Equity Portfolio		701,000		7,535,750
PowerShares Global Water Portfolio		605,700		12,120,057
Rydex S&P Equal Weight Industrial ETF		149,400		8,098,959
SPDR Barclays Capital Convertible Securities ETF		342,000		14,039,100
SPDR Barclays Capital High Yield Bond ETF		282,400		11,214,104
SPDR Gold Trust (a)		87,200		12,096,384
Vanguard Information Technology Index ETF		387,900		23,863,569
Vanguard Short-Term Corporate Bond ETF		467,600		36,196,916
Total Exchange-Traded Funds (Identified cost $180,704,707)				205,683,998

Description	Shares		Value
Closed-End Management Investment Companies | 6.0%
Royce Value Trust, Inc.		759,942	$	11,049,557
Tri-Continental Corp.		264,282		3,636,520
Total Closed-End Management Investment Companies (Identified cost $12,559,904)				14,686,077
Short-Term Investment | 9.4%
State Street Institutional Treasury Money Market Fund (Identified cost $23,293,989)		23,293,989		23,293,989
Total Investments | 98.8% (Identified cost $216,558,600) (b)				243,664,064

Description	Contracts		Value
Purchased Option | 1.2%
Put - iShares Barclays 20+ Year
Treasury Bond Fund, Expires 01/21/12 (Identified cost $2,430,701)		4,200	$	2,877,000
Total Investments and Purchased Option | 100.0% (Identified cost $218,989,301)			$	246,541,064
Cash and Other Assets in Excess of Liabilities | 0.0%				24,739
Net Assets | 100.0%			$	246,565,803

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

60  Annual Report

Lazard Capital Allocator Opportunistic Strategies Portfolio (concluded)

Forward Currency Contracts open at December 31, 2010:

Forward Currency Contracts	Counterparty	Expiration Date	Foreign Currency	U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts
EUR	SSB	01/19/11	4,000,000	$	5,230,120	$	5,345,064	$	114,944	$	—
GBP	SSB	01/19/11	3,493,240		5,506,915		5,445,744		—		61,171
Total Forward Currency Purchase Contracts				$	10,737,035	$	10,790,808	$	114,944	$	61,171
Forward Currency Sale Contracts
EUR	SSB	01/19/11	4,000,000	$	5,506,915	$	5,345,064	$	161,851	$	—
GBP	SSB	01/19/11	3,493,240		5,421,194		5,445,744		—		24,550
Total Forward Currency Sale Contracts				$	10,928,109	$	10,790,808		161,851		24,550
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts								$	276,795	$	85,721

Swap Agreement open at December 31, 2010:

Currency	Counterparty	Notional Amount	Expiration Date	Pay	Receive	Net Unrealized Appreciation
USD	Goldman Sachs	7,212,537	03/02/11	1 Month USD	Appreciation, and	$	88,010
	International			LIBOR plus	dividends paid, on
				0.2606%	securities in the
					Equity Basket

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

Annual Report  61

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2010

(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 are as follows:

Portfolio	Aggregate Cost		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation		Net Unrealized Appreciation
U.S. Equity Value	$	12,139,977	$	1,400,612	$	200,054	$	1,200,558
U.S. Strategic Equity		68,290,904		13,543,776		573,080		12,970,696
U.S. Mid Cap Equity		168,255,542		30,247,993		1,527,568		28,720,425
U.S. Small-Mid Cap Equity		226,548,543		34,985,142		1,262,754		33,722,388
International Equity		133,229,371		25,778,168		2,995,760		22,782,408
International Equity Select		5,870,299		858,544		91,701		766,843
International Strategic Equity		334,992,857		70,782,528		4,882,231		65,900,297
International Small Cap Equity		57,580,740		15,435,542		1,012,232		14,423,310
Global Listed Infrastructure		114,120,094		4,689,458		2,114,156		2,575,302
Emerging Markets Equity		14,773,103,808		4,157,804,677		271,851,332		3,885,953,345
Developing Markets Equity		156,070,417		16,786,494		1,049,096		15,737,398
Emerging Markets Equity Blend		61,604,382		2,962,301		649,832		2,312,469
U.S. High Yield		130,028,328		7,659,313		1,489,823		6,169,490
Capital Allocator Opportunistic Strategies		219,294,868		27,566,182		319,986		27,246,196

(c)	Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers.” At December 31, 2010, these securities amounted to 1.2%, 3.8%, 0.8% and 25.8% of net assets of Lazard International Equity Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Emerging Markets Equity Portfolio and Lazard U.S. High Yield Portfolio, respectively, and are considered to be liquid.
(d)	Categorized based on Level 2 inputs. (Note 9)
(e)	Bankrupt issuer; security valued at zero; principal amount denominated in respective country’s currency.

Security Abbreviations:
ADR	—	American Depositary Receipt
ETF	—	Exchange-Traded Fund
GDR	—	Global Depositary Receipt
REIT	—	Real Estate Investment Trust
SDR	—	Swedish Depositary Receipt
Currency Abbreviations:
AUD	—	Australian Dollar
CHF	—	Swiss Franc
EUR	—	Euro
GBP	—	British Pound Sterling
JPY	—	Japanese Yen
KRW	—	South Korean Won
MXN	—	Mexican New Peso
USD	—	US Dollar
Counterparty Abbreviations:
BRC	—	Barclays Bank PLC
CIT	—	Citigroup NA
CSF	—	Credit Suisse First Boston
HSB	—	HSBC Bank USA
MEL	—	Mellon Bank NA
SSB	—	State Street Bank and Trust Co.

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

62  Annual Report

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	0.9	%	1.4	%	—	%	—	%	—	%	1.5	%	1.3	%	1.0	%
Airport Development & Maintenance	—		—		—		—		13.7		—		—		—
Alcohol & Tobacco	3.6		5.8		6.5		1.0		—		3.9		—		1.9
Apparel & Textiles	—		—		—		—		—		—		1.8		1.2
Automotive	4.7		2.3		4.3		1.6		—		—		2.8		1.2
Banking	12.2		11.6		10.8		1.4		—		17.4		21.6		19.2
Building Materials	—		—		—		—		—		1.0		—		—
Cable Television	—		—		1.8		—		—		—		—		—
Chemicals	—		—		1.1		1.0		—		—		—		—
Commercial Services	4.7		1.8		3.9		14.2		—		3.3		—		—
Computer Software	1.0		2.0		—		2.1		—		2.8		2.4		2.9
Construction & Engineering	0.6		—		4.1		3.3		—		2.2		3.0		3.8
Consumer Products	—		—		1.8		5.3		—		3.1		0.7		2.0
Diversified	—		—		—		—		—		1.0		—		0.9
Electric	1.2		—		—		—		27.7		1.3		1.5		2.7
Energy Exploration & Production	1.0		1.3		1.9		—		—		1.3		6.1		2.6
Energy Integrated	4.6		6.9		1.7		1.4		—		3.9		5.6		6.6
Energy Services	2.3		1.7		2.6		5.1		3.1		—		2.3		1.3
Financial Services	4.4		4.9		7.8		4.1		—		6.8		3.5		2.7
Food & Beverages	5.3		5.5		3.7		1.2		—		2.0		—		1.3
Forest & Paper Products	—		—		—		2.5		—		0.6		0.9		0.9
Gas Utilities	—		—		—		—		10.7		0.7		1.7		1.6
Health Services	—		—		—		2.9		—		—		—		—
Housing	3.0		1.1		4.4		1.5		—		1.3		1.8		1.5
Insurance	4.3		3.7		5.8		—		—		1.3		2.0		1.9
Leisure & Entertainment	3.0		1.8		2.4		1.3		—		1.3		1.5		2.4
Manufacturing	6.7		7.6		3.5		15.0		—		2.5		2.9		1.4
Medical Products	—		—		1.3		7.2		—		—		—		—
Metals & Mining	4.2		7.4		3.4		—		—		12.7		5.7		9.5
Pharmaceutical & Biotechnology	9.2		9.3		8.6		3.7		—		—		—		—
Real Estate	2.2		2.6		—		—		—		—		4.7		1.6
Retail	3.5		3.2		5.8		5.6		—		3.6		5.6		4.4
Semiconductors & Components	4.6		6.6		2.6		6.7		—		7.7		5.8		7.1
Technology	2.6		2.5		1.7		0.8		—		0.7		—		—
Technology Hardware	—		—		1.2		1.2		1.0		2.2		4.4		3.9
Telecommunications	5.5		6.8		4.4		4.7		—		9.2		4.2		7.2
Transportation	2.3		—		1.3		3.6		41.3		0.8		0.9		—
Water	—		—		—		—		3.0		—		—		—
Subtotal	97.6		97.8		98.4		98.4		100.5		96.1		94.7		94.7
Short-Term Investments	—		1.7		1.3		1.4		0.3		3.4		3.8		5.3
Repurchase Agreement	2.3		—		—		—		—		—		—		—
Total Investments	99.9	%	99.5	%	99.7	%	99.8	%	100.8	%	99.5	%	98.5	%	100.0	%

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

Annual Report  63

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2010	Lazard U.S. Equity Value Portfolio			Lazard U.S. Strategic Equity Portfolio
ASSETS
Investments in securities, at value	$	13,340,535		$	81,261,600
Cash		—			—
Foreign currency		—			—
Receivables for:
Capital stock sold		—			24,168
Investments sold		—			69,211
Dividends and interest		19,103			45,771
Amount due from Investment Manager (Note 3)		11,501			—
Total assets		13,371,139			81,400,750
LIABILITIES
Payables for:
Management fees		—			24,537
Accrued distribution fees		65			2,097
Accrued directors’ fees		20			121
Investments purchased		—			128,861
Capital stock redeemed		—			2
Other accrued expenses and payables		10,802			14,196
Total liabilities		10,887			169,814
Net assets	$	13,360,252		$	81,230,936
NET ASSETS
Paid in capital	$	14,862,488		$	91,715,022
Undistributed (distributions in excess of) net investment income		(16,988	)		635,059
Accumulated net realized loss		(2,816,531	)		(24,521,686	)
Net unrealized appreciation on:
Investments		1,331,283			13,402,541
Foreign currency		—			—
Net assets	$	13,360,252		$	81,230,936
Institutional Shares
Net assets	$	13,066,089		$	71,207,270
Shares of capital stock outstanding*		1,367,217			7,940,671
Net asset value, offering and redemption price per share	$	9.56		$	8.97
Open Shares
Net assets	$	294,163		$	10,023,666
Shares of capital stock outstanding*		30,610			1,117,356
Net asset value, offering and redemption price per share	$	9.61		$	8.97
Cost of investments in securities	$	12,009,252		$	67,859,059
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.

64  Annual Report

December 31, 2010	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
ASSETS
Investments in securities, at value	$	196,975,967		$	260,270,931		$	156,011,779		$	6,637,142		$	400,893,154
Cash		—			816			646			—			—
Foreign currency		—			—			47,339			7,049			231,396
Receivables for:
Capital stock sold		6,090,244			209,108			108,604			3,349			866,149
Investments sold		523,415			585,952			—			—			—
Dividends and interest		99,575			185,139			341,354			26,296			696,648
Amount due from Investment Manager (Note 3)		—			—			—			10,937			—
Total assets		203,689,201			261,251,946			156,509,722			6,684,773			402,687,347
LIABILITIES
Payables for:
Management fees		121,905			164,963			98,540			—			259,281
Accrued distribution fees		15,625			4,979			5,924			641			9,265
Accrued directors’ fees		326			391			233			8			603
Investments purchased		1,702,731			459,707			205,686			—			183,803
Capital stock redeemed		5,650,053			60,360			21,326			7			39,111
Other accrued expenses and payables		22,457			40,627			23,744			13,998			46,093
Total liabilities		7,513,097			731,027			355,453			14,654			538,156
Net assets	$	196,176,104		$	260,520,919		$	156,154,269		$	6,670,119		$	402,149,191
NET ASSETS
Paid in capital	$	255,940,150		$	227,166,862		$	180,475,788		$	10,505,225		$	421,451,751
Undistributed (distributions in excess of) net investment income		—			34,368			2,291,453			130,702			1,403,868
Accumulated net realized loss		(89,319,110	)		(645,077	)		(50,676,413	)		(4,852,966	)		(87,887,752	)
Net unrealized appreciation on:
Investments		29,555,064			33,964,766			24,048,471			885,955			67,168,295
Foreign currency		—			—			14,970			1,203			13,029
Net assets	$	196,176,104		$	260,520,919		$	156,154,269		$	6,670,119		$	402,149,191
Institutional Shares
Net assets	$	126,625,589		$	238,901,316		$	127,484,738		$	3,614,192		$	356,098,379
Shares of capital stock outstanding*		10,039,112			16,413,981			9,233,358			452,165			33,503,311
Net asset value, offering and redemption price per share	$	12.61		$	14.55		$	13.81		$	7.99		$	10.63
Open Shares
Net assets	$	69,550,515		$	21,619,603		$	28,669,531		$	3,055,927		$	46,050,812
Shares of capital stock outstanding*		5,586,393			1,516,112			2,060,873			381,274			4,312,256
Net asset value, offering and redemption price per share	$	12.45		$	14.26		$	13.91		$	8.02		$	10.68
Cost of investments in securities	$	167,420,903		$	226,306,165		$	131,963,308		$	5,751,187		$	333,724,206
Cost of foreign currency	$	—		$	—		$	47,013		$	6,873		$	231,869

Annual Report  65

December 31, 2010	Lazard International Small Cap Equity Portfolio			Lazard Global Listed Infrastructure Portfolio
ASSETS
Investments in securities and purchased option, at value	$	72,004,050		$	116,695,396
Cash		—			—
Foreign currency		734			79
Receivables for:
Capital stock sold		66,538			231,304
Investments sold		—			966,365
Dividends and interest		154,723			617,327
Amount due from Investment Manager (Note 3)		—			—
Amount due from custodian		—			—
Gross unrealized appreciation on:
Forward currency contracts		—			6,218
Swap agreement		—			—
Premium for swap agreement purchased		—			—
Deferred offering expense		—			—
Total assets		72,226,045			118,516,689
LIABILITIES
Payables for:
Management fees		42,033			66,199
Accrued distribution fees		5,204			32
Accrued directors’ fees		105			175
Investments purchased		—			—
Capital stock redeemed		39,398			98,824
Foreign capital gains taxes		—			—
Dividends		—			—
Gross unrealized depreciation on forward currency contracts		—			2,521,850
Other accrued expenses and payables		21,678			31,353
Total liabilities		108,418			2,718,433
Net assets	$	72,117,627		$	115,798,256
NET ASSETS
Paid in capital	$	139,636,988		$	111,983,071
Undistributed (distributions in excess of) net investment income (loss)		912,033			590,908
Accumulated net realized gain (loss)		(85,320,065	)		412,700
Net unrealized appreciation (depreciation) on:
Investments		16,881,330			5,314,714
Swap agreement		—			—
Foreign currency and forward currency contracts		7,341			(2,503,137	)
Net assets	$	72,117,627		$	115,798,256
Institutional Shares
Net assets	$	47,133,846		$	115,679,933
Shares of capital stock outstanding*		5,804,978			11,214,996
Net asset value, offering and redemption price per share	$	8.12		$	10.31
Open Shares
Net assets	$	24,983,781		$	118,323
Shares of capital stock outstanding*		3,070,770			11,448
Net asset value, offering and redemption price per share	$	8.14		$	10.34
Cost of investments in securities and purchased option	$	55,122,720		$	111,380,682
Cost of foreign currency	$	710		$	78

* $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.

66  Annual Report

December 31, 2010	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
ASSETS
Investments in securities and purchased option, at value	$	18,659,057,153		$	171,807,815		$	63,916,851		$	136,197,818		$	246,541,064
Cash		—			—			203,850			—			—
Foreign currency		33,526,075			416,125			86,261			—			—
Receivables for:
Capital stock sold		60,513,971			2,641,054			414,278			258,353			268,782
Investments sold		52,493,031			—			8,111			—			—
Dividends and interest		37,373,040			113,321			63,312			2,519,533			438,911
Amount due from Investment Manager (Note 3)		—			—			162,713			—			—
Amount due from custodian		26,918			—			—			—			—
Gross unrealized appreciation on:
Forward currency contracts		—			—			—			—			276,795
Swap agreement		—			—			—			—			88,010
Premium for swap agreement purchased		—			—			—			—			4,732
Deferred offering expense		—			—			17,143			—			—
Total assets		18,842,990,188			174,978,315			64,872,519			138,975,704			247,618,294
LIABILITIES
Payables for:
Management fees		15,458,412			54,960			—			26,498			179,884
Accrued distribution fees		866,805			19,971			1,570			5,525			1,297
Accrued directors’ fees		27,595			253			50			216			353
Investments purchased		31,534,835			185,053			859,262			—			644,248
Capital stock redeemed		19,649,825			260,159			—			45,706			126,458
Foreign capital gains taxes		23,950,850			16,776			5,337			—			—
Dividends		—			—			—			182,300			—
Gross unrealized depreciation on forward currency contracts		—			—			—			—			85,721
Other accrued expenses and payables		3,209,942			59,117			59,345			22,270			14,530
Total liabilities		94,698,264			596,289			925,564			282,515			1,052,491
Net assets	$	18,748,291,924		$	174,382,026		$	63,946,955		$	138,693,189		$	246,565,803
NET ASSETS
Paid in capital	$	15,347,030,444		$	156,809,483		$	61,258,734		$	140,587,046		$	244,270,368
Undistributed (distributions in excess of) net investment income (loss)		(54,251,470	)		(510,910	)		(165,475	)		(182,300	)		(113,014	)
Accumulated net realized gain (loss)		(642,609,221	)		1,465,859			508,449			(7,881,047	)		(25,422,398	)
Net unrealized appreciation (depreciation) on:
Investments		4,098,281,662			16,605,287			2,344,269			6,169,490			27,551,763
Swap agreement		—			—			—			—			88,010
Foreign currency and forward currency contracts		(159,491	)		12,307			978			—			191,074
Net assets	$	18,748,291,924		$	174,382,026		$	63,946,955		$	138,693,189		$	246,565,803
Institutional Shares
Net assets	$	14,561,085,322		$	72,798,443		$	54,826,360		$	112,427,399		$	239,403,185
Shares of capital stock outstanding*		668,512,736			4,815,473			4,402,117			23,045,185			24,035,924
Net asset value, offering and redemption price per share	$	21.78		$	15.12		$	12.45		$	4.88		$	9.96
Open Shares
Net assets	$	4,187,206,602		$	101,583,583		$	9,120,595		$	26,265,790		$	7,162,618
Shares of capital stock outstanding*		188,734,763			6,698,626			733,742			5,357,420			718,711
Net asset value, offering and redemption price per share	$	22.19		$	15.16		$	12.43		$	4.90		$	9.97
Cost of investments in securities and purchased option	$	14,536,824,641		$	155,185,752		$	61,567,245		$	130,028,328		$	218,989,301
Cost of foreign currency	$	33,498,614		$	404,626		$	85,275		$	—		$	—

Annual Report  67

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2010	Lazard U.S. Equity Value Portfolio			Lazard U.S. Strategic Equity Portfolio
Investment Income
Income
Dividends	$	238,146		$	1,419,993
Interest		37			86
Total investment income*		238,183			1,420,079
Expenses
Management fees (Note 3)		82,276			556,433
Custodian fees		65,587			59,278
Distribution fees (Open Shares)		740			23,257
Shareholders’ services		25,996			27,240
Shareholders’ reports		4,101			6,167
Administration fees		52,216			64,964
Registration fees		33,596			33,307
Professional services		50,537			52,148
Directors’ fees and expenses		371			2,531
Other		3,729			5,608
Total gross expenses		319,149			830,933
Management fees waived and expenses reimbursed		(192,613	)		(45,899	)
Administration fees waived		(18,750	)		—
Expense reductions (Note 2(j))		—			—
Total net expenses		107,786			785,034
Net investment income		130,397			635,045
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Net realized gain (loss) on:
Investments**		440,071			4,650,912
Foreign currency		—			—
Net change in unrealized appreciation (depreciation) on:
Investments†		840,376			4,195,742
Foreign currency		—			—
Net realized and unrealized gain on investments and foreign currency		1,280,447			8,846,654
Net increase in net assets resulting from operations	$	1,410,844		$	9,481,699
* 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.

68  Annual Report

For the Year Ended December 31, 2010	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
Investment Income
Income
Dividends	$	3,617,763		$	2,062,698		$	3,839,992		$	194,586		$	7,986,301
Interest		739			514			120			17			2,927
Total investment income*		3,618,502			2,063,212			3,840,112			194,603			7,989,228
Expenses
Management fees (Note 3)		1,490,077			933,932			1,106,469			55,433			2,735,062
Custodian fees		74,763			83,105			133,788			102,564			259,055
Distribution fees (Open Shares)		169,410			52,110			53,780			8,900			71,179
Shareholders’ services		30,749			29,697			29,606			26,196			28,257
Shareholders’ reports		25,379			18,948			12,626			7,818			16,955
Administration fees		89,737			74,906			79,507			51,306			122,937
Registration fees		34,891			53,362			33,599			32,306			47,934
Professional services		57,010			54,553			54,001			50,448			59,190
Directors’ fees and expenses		6,782			4,029			4,999			222			12,269
Other		10,331			7,184			8,651			4,131			14,123
Total gross expenses		1,989,129			1,311,826			1,517,026			339,324			3,366,961
Management fees waived and expenses reimbursed		—			—			—			(253,567	)		—
Administration fees waived		—			—			—			—			—
Expense reductions (Note 2(j))		(87	)		(32	)		(79	)		—			—
Total net expenses		1,989,042			1,311,794			1,516,947			85,757			3,366,961
Net investment income		1,629,460			751,418			2,323,165			108,846			4,622,267
Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency
Net realized gain (loss) on:
Investments**		37,964,019			21,787,222			(5,360,998	)		27,485			11,499,379
Foreign currency		—			—			(67,373	)		(2,236	)		(366,001	)
Net change in unrealized appreciation (depreciation) on:
Investments†		2,333,458			17,969,577			14,252,212			167,416			35,551,639
Foreign currency		—			—			8,659			1,109			(49,208	)
Net realized and unrealized gain on investments and foreign currency		40,297,477			39,756,799			8,832,500			193,774			46,635,809
Net increase in net assets resulting from operations	$	41,926,937		$	40,508,217		$	11,155,665		$	302,620		$	51,258,076
* Net of foreign withholding taxes of	$	—		$	—		$	319,241		$	18,266		$	619,746
** Net of foreign capital gains taxes of	$	—		$	—		$	1,046		$	—		$	—
† Includes net change in unrealized foreign capital gains taxes of	$	—		$	—		$	—		$	—		$	(17,536	)

Annual Report  69

For the Period Ended December 31, 2010	Lazard International Small Cap Equity Portfolio			Lazard Global Listed Infrastructure Portfolio
Investment Income
Income
Dividends	$	1,690,324		$	3,929,980
Interest		134			840
Total investment income*		1,690,458			3,930,820
Expenses
Management fees (Note 3)		503,229			820,972
Custodian fees		115,876			110,454
Distribution fees (Open Shares)		61,102			211
Shareholders’ services		28,794			26,015
Shareholders’ reports		15,473			34,672
Administration fees		63,421			68,245
Registration fees		34,179			72,717
Professional services		51,974			102,937
Directors’ fees and expenses		2,272			3,004
Amortization of offering expenses		—			—
Other		6,125			7,609
Total gross expenses		882,445			1,246,836
Management fees waived and expenses reimbursed		(50,665	)		(48,817	)
Administration and shareholders’ services fees waived		—			(11,921	)
Expense reductions (Note 2(j))		—			—
Total net expenses		831,780			1,186,098
Net investment income (loss)		858,678			2,744,722
Net Realized and Unrealized Gain (Loss) on Investments, Options, Swap Agreements, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments**		(2,100,294	)		3,140,661
Options		—			—
Swap agreements		—			—
Foreign currency and forward currency contracts		(1,222	)		(1,437,237	)
Net change in unrealized appreciation (depreciation) on:
Investments†		15,084,051			5,314,714
Swap agreements		—			—
Foreign currency and forward currency contracts		6,761			(2,503,137	)
Net realized and unrealized gain on investments, options, swap agreements, foreign currency and forward currency contracts		12,989,296			4,515,001
Net increase in net assets resulting from operations	$	13,847,974		$	7,259,723
* Net of foreign withholding taxes of	$	154,103		$	464,826
** 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.

70  Annual Report

For the Period Ended December 31, 2010	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
Investment Income
Income
Dividends	$	466,067,876		$	1,050,671		$	114,021		$	—		$	5,093,276
Interest		91,416			678			255			8,702,789			863
Total investment income*		466,159,292			1,051,349			114,276			8,702,789			5,094,139
Expenses
Management fees (Note 3)		148,785,989			779,690			103,881			603,838			2,159,816
Custodian fees		12,647,242			255,664			325,060			73,009			55,020
Distribution fees (Open Shares)		9,881,756			110,878			3,707			51,508			24,185
Shareholders’ services		5,143,167			38,359			16,949			32,656			29,788
Shareholders’ reports		2,630,838			11,537			4,378			8,338			12,166
Administration fees		1,637,861			65,595			30,730			71,959			93,198
Registration fees		1,015,464			57,806			12,561			45,116			35,842
Professional services		407,985			51,969			67,122			52,890			55,672
Directors’ fees and expenses		498,587			2,544			19,944			3,691			7,298
Amortization of offering expenses		—			—			24,293			—			—
Other		409,439			8,360			6,133			6,262			10,681
Total gross expenses		183,058,328			1,382,402			614,758			949,267			2,483,666
Management fees waived and expenses reimbursed		—			(237,373	)		(457,173	)		(283,787	)		(250,976	)
Administration and shareholders’ services fees waived		—			—			(19,676	)		—			—
Expense reductions (Note 2(j))		(3,505	)		—			(15	)		(88	)		(352	)
Total net expenses		183,054,823			1,145,029			137,894			665,392			2,232,338
Net investment income (loss)		283,104,469			(93,680	)		(23,618	)		8,037,397			2,861,801
Net Realized and Unrealized Gain (Loss) on Investments, Options, Swap Agreements, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments**		988,753,862			13,766,802			628,765			1,545,110			11,970,739
Options		—			—			—			—			(15,900	)
Swap agreements		—			—			—			—			1,320,810
Foreign currency and forward currency contracts		(24,441,376	)		(411,058	)		(180,156	)		—			43,562
Net change in unrealized appreciation (depreciation) on:
Investments†		2,041,595,420			8,687,589			2,344,269			2,454,171			12,730,826
Swap agreements		—			—			—			—			88,010
Foreign currency and forward currency contracts		381,623			10,152			978			—			191,066
Net realized and unrealized gain on investments, options, swap agreements, foreign currency and forward currency contracts		3,006,289,529			22,053,485			2,793,856			3,999,281			26,329,113
Net increase in net assets resulting from operations	$	3,289,393,998		$	21,959,805		$	2,770,238		$	12,036,678		$	29,190,914
* Net of foreign withholding taxes of	$	40,464,493		$	100,313		$	9,390		$	—		$	9,442
** Net of foreign capital gains taxes of	$	3,411,047		$	8,348		$	4,775		$	—		$	—
† Includes net change in unrealized foreign capital gains taxes of	$	13,900,824		$	16,776		$	5,337		$	—		$	—
(a) From Portfolio’s commencement of operations on May 28, 2010.

Annual Report  71

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

	Lazard U.S. Equity Value Portfolio
	Year Ended December 31, 2010			Year Ended December 31, 2009
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	130,397		$	115,530
Net realized gain (loss) on investments		440,071			(1,128,878	)
Net change in unrealized appreciation on investments		840,376			2,777,855
Net increase in net assets resulting from operations		1,410,844			1,764,507
Distributions to shareholders
From net investment income
Institutional Shares		(126,683	)		(113,788	)
Open Shares		(2,060	)		(3,262	)
Net decrease in net assets resulting from distributions		(128,743	)		(117,050	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		3,643,690			304,242
Open Shares		39,967			133,161
Net proceeds from reinvestment of distributions
Institutional Shares		125,251			112,953
Open Shares		1,859			2,813
Cost of shares redeemed
Institutional Shares		(416,674	)		(88,111	)
Open Shares		(81,181	)		(36,876	)
Net increase (decrease) in net assets from capital stock transactions		3,312,912			428,182
Redemption fees (Note 2(k))
Institutional Shares		1,143			—
Open Shares		—			26
Net increase in net assets from redemption fees		1,143			26
Total increase (decrease) in net assets		4,596,156			2,075,665
Net assets at beginning of year		8,764,096			6,688,431
Net assets at end of year*	$	13,360,252		$	8,764,096
*Includes undistributed (distributions in excess of) net investment income of	$	(16,988	)	$	(18,745	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		982,317			936,319
Shares sold		417,278			44,457
Shares issued to shareholders from reinvestment of distributions		13,102			13,003
Shares redeemed		(45,480	)		(11,462	)
Net increase (decrease)		384,900			45,998
Shares outstanding at end of year		1,367,217			982,317
Open Shares
Shares outstanding at beginning of year		34,649			19,092
Shares sold		4,605			19,468
Shares issued to shareholders from reinvestment of distributions		193			321
Shares redeemed		(8,837	)		(4,232	)
Net increase (decrease)		(4,039	)		15,557
Shares outstanding at end of year		30,610			34,649

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

72  Annual Report

	Lazard U.S. Strategic Equity Portfolio						Lazard U.S. Mid Cap Equity Portfolio						Lazard U.S. Small-Mid Cap Equity Portfolio
	Year Ended December 31, 2010			Year Ended December 31, 2009			Year Ended December 31, 2010			Year Ended December 31, 2009			Year Ended December 31, 2010			Year Ended December 31, 2009
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	635,045		$	802,047		$	1,629,460		$	1,448,793		$	751,418		$	(103,747	)
Net realized gain (loss) on investments		4,650,912			(7,129,841	)		37,964,019			(17,280,343	)		21,787,222			(1,444,661	)
Net change in unrealized appreciation on investments		4,195,742			23,468,149			2,333,458			76,524,594			17,969,577			26,073,943
Net increase in net assets resulting from operations		9,481,699			17,140,355			41,926,937			60,693,044			40,508,217			24,525,535
Distributions to shareholders
From net investment income
Institutional Shares		(724,232	)		—			(1,096,389	)		(1,061,800	)		(716,032	)		—
Open Shares		(77,713	)		—			(483,080	)		(362,964	)		—			—
Net decrease in net assets resulting from distributions		(801,945	)		—			(1,579,469	)		(1,424,764	)		(716,032	)		—
Capital stock transactions
Net proceeds from sales
Institutional Shares		4,048,153			3,621,141			43,741,530			36,596,957			169,823,469			18,625,206
Open Shares		3,578,373			3,948,509			15,303,321			13,677,026			7,423,916			7,627,394
Net proceeds from reinvestment of distributions
Institutional Shares		712,514			—			854,552			751,427			705,067			—
Open Shares		70,284			—			453,217			339,321			—			—
Cost of shares redeemed
Institutional Shares		(7,261,909	)		(7,392,941	)		(87,725,369	)		(35,236,721	)		(22,913,323	)		(18,159,522	)
Open Shares		(3,693,636	)		(4,187,168	)		(29,807,859	)		(30,418,809	)		(9,883,866	)		(4,480,404	)
Net increase (decrease) in net assets from capital stock transactions		(2,546,221	)		(4,010,459	)		(57,180,608	)		(14,290,799	)		145,155,263			3,612,674
Redemption fees (Note 2(k))
Institutional Shares		8			—			1,535			3,650			468			—
Open Shares		92			—			3,431			1,067			114			28
Net increase in net assets from redemption fees		100			—			4,966			4,717			582			28
Total increase (decrease) in net assets		6,133,633			13,129,896			(16,828,174	)		44,982,198			184,948,030			28,138,237
Net assets at beginning of year		75,097,303			61,967,407			213,004,278			168,022,080			75,572,889			47,434,652
Net assets at end of year*	$	81,230,936		$	75,097,303		$	196,176,104		$	213,004,278		$	260,520,919		$	75,572,889
*Includes undistributed (distributions in excess of) net investment income of	$	635,059		$	802,020		$	—		$	51,803		$	34,368		$	1
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		8,247,044			8,746,920			13,891,697			13,826,282			4,750,537			4,863,965
Shares sold		501,965			591,194			3,862,950			4,407,296			13,342,989			1,885,281
Shares issued to shareholders from reinvestment of distributions		90,306			—			68,201			72,480			48,325			—
Shares redeemed		(898,644	)		(1,091,070	)		(7,783,736	)		(4,414,361	)		(1,727,870	)		(1,998,709	)
Net increase (decrease)		(306,373	)		(499,876	)		(3,852,585	)		65,415			11,663,444			(113,428	)
Shares outstanding at end of year		7,940,671			8,247,044			10,039,112			13,891,697			16,413,981			4,750,537
Open Shares
Shares outstanding at beginning of year		1,114,686			1,148,843			6,852,067			8,699,296			1,689,218			1,406,771
Shares sold		450,158			617,602			1,387,657			1,654,398			609,491			818,001
Shares issued to shareholders from reinvestment of distributions		8,897			—			36,432			32,976			—			—
Shares redeemed		(456,385	)		(651,759	)		(2,689,763	)		(3,534,603	)		(782,597	)		(535,554	)
Net increase (decrease)		2,670			(34,157	)		(1,265,674	)		(1,847,229	)		(173,106	)		282,447
Shares outstanding at end of year		1,117,356			1,114,686			5,586,393			6,852,067			1,516,112			1,689,218

Annual Report  73

	Lazard International Equity Portfolio
	Year Ended December 31, 2010			Year Ended December 31, 2009
Increase (Decrease) in Net Assets
Operations
Net investment income	$	2,323,165		$	3,150,453
Net realized gain (loss) on investments and foreign currency		(5,428,371	)		(25,536,002	)
Net change in unrealized appreciation on investments and foreign currency		14,260,871			54,145,089
Net increase in net assets resulting from operations		11,155,665			31,759,540
Distributions to shareholders
From net investment income
Institutional Shares		(3,382,382	)		(50,545	)
Open Shares		(478,939	)		—
Net decrease in net assets resulting from distributions		(3,861,321	)		(50,545	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		3,881,399			6,660,199
Open Shares		12,170,804			6,211,004
Net proceeds from reinvestment of distributions
Institutional Shares		2,585,130			35,632
Open Shares		343,043			—
Cost of shares redeemed
Institutional Shares		(23,987,029	)		(15,396,026	)
Open Shares		(4,723,671	)		(5,330,811	)
Net increase (decrease) in net assets from capital stock transactions		(9,730,324	)		(7,820,002	)
Redemption fees (Note 2(k))
Institutional Shares		91			947
Open Shares		513			—
Net increase (decrease) in net assets from redemption fees		604			947
Total increase (decrease) in net assets		(2,435,376	)		23,889,940
Net assets at beginning of year		158,589,645			134,699,705
Net assets at end of year*	$	156,154,269		$	158,589,645
*Includes undistributed net investment income of	$	2,291,453		$	3,226,533
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		10,584,664			11,420,948
Shares sold		303,754			607,053
Shares issued to shareholders from reinvestment of distributions		201,963			2,881
Shares redeemed		(1,857,023	)		(1,446,218	)
Net increase (decrease)		(1,351,306	)		(836,284	)
Shares outstanding at end of year		9,233,358			10,584,664
Open Shares
Shares outstanding at beginning of year		1,474,744			1,398,912
Shares sold		923,563			560,515
Shares issued to shareholders from reinvestment of distributions		26,572			—
Shares redeemed		(364,006	)		(484,683	)
Net increase (decrease)		586,129			75,832
Shares outstanding at end of year		2,060,873			1,474,744

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

74  Annual Report

	Lazard International Equity Select Portfolio						Lazard International Strategic Equity Portfolio						Lazard International Small Cap Equity Portfolio
	Year Ended December 31, 2010			Year Ended December 31, 2009			Year Ended December 31, 2010			Year Ended December 31, 2009			Year Ended December 31, 2010			Year Ended December 31, 2009
Increase (Decrease) in Net Assets
Operations
Net investment income	$	108,846		$	201,770		$	4,622,267		$	6,601,062		$	858,678		$	1,040,146
Net realized gain (loss) on investments and foreign currency		25,249			(2,579,559	)		11,133,378			(50,885,864	)		(2,101,516	)		(46,018,345	)
Net change in unrealized appreciation on investments and foreign currency		168,525			3,955,286			35,502,431			115,551,293			15,090,812			61,363,581
Net increase in net assets resulting from operations		302,620			1,577,497			51,258,076			71,266,491			13,847,974			16,385,382
Distributions to shareholders
From net investment income
Institutional Shares		(103,546	)		(11,249	)		(4,610,208	)		(6,008,173	)		(672,354	)		—
Open Shares		(130,875	)		(2,723	)		(293,349	)		(269,925	)		(321,023	)		—
Net decrease in net assets resulting from distributions		(234,421	)		(13,972	)		(4,903,557	)		(6,278,098	)		(993,377	)		—
Capital stock transactions
Net proceeds from sales
Institutional Shares		1,434,641			1,387,848			36,021,689			40,370,073			9,124,250			23,843,888
Open Shares		582,214			918,356			30,431,569			12,171,444			2,084,060			8,784,586
Net proceeds from reinvestment of distributions
Institutional Shares		79,878			7,209			3,625,597			4,544,925			284,490			—
Open Shares		125,444			2,505			291,220			264,695			306,999			—
Cost of shares redeemed
Institutional Shares		(1,882,800	)		(1,993,398	)		(37,270,773	)		(41,400,791	)		(10,727,998	)		(65,099,266	)
Open Shares		(2,193,350	)		(3,143,891	)		(8,322,274	)		(9,150,357	)		(9,971,982	)		(20,446,760	)
Net increase (decrease) in net assets from capital stock transactions		(1,853,973	)		(2,821,371	)		24,777,028			6,799,989			(8,900,181	)		(52,917,552	)
Redemption fees (Note 2(k))
Institutional Shares		—			313			118			191			20			413
Open Shares		335			263			671			(2,084	)		5			2,454
Net increase (decrease) in net assets from redemption fees		335			576			789			(1,893	)		25			2,867
Total increase (decrease) in net assets		(1,785,439	)		(1,257,270	)		71,132,336			71,786,489			3,954,441			(36,529,303	)
Net assets at beginning of year		8,455,558			9,712,828			331,016,855			259,230,366			68,163,186			104,692,489
Net assets at end of year*	$	6,670,119		$	8,455,558		$	402,149,191		$	331,016,855		$	72,117,627		$	68,163,186
*Includes undistributed net investment income of	$	130,702		$	207,352		$	1,403,868		$	1,227,452		$	912,033		$	983,995
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		509,472			604,238			33,103,967			32,709,101			6,021,391			15,560,787
Shares sold		184,363			212,263			3,706,732			4,550,037			1,302,865			4,055,748
Shares issued to shareholders from reinvestment of distributions		10,838			985			353,917			484,282			40,758			—
Shares redeemed		(252,508	)		(308,014	)		(3,661,305	)		(4,639,453	)		(1,560,036	)		(13,595,144	)
Net increase (decrease)		(57,307	)		(94,766	)		399,344			394,866			(216,413	)		(9,539,396	)
Shares outstanding at end of year		452,165			509,472			33,503,311			33,103,967			5,804,978			6,021,391
Open Shares
Shares outstanding at beginning of year		586,579			912,853			2,061,818			1,814,586			4,168,917			6,237,024
Shares sold		74,636			135,263			3,092,002			1,449,537			297,751			1,514,858
Shares issued to shareholders from reinvestment of distributions		16,975			341			28,007			28,037			43,795			—
Shares redeemed		(296,916	)		(461,878	)		(869,571	)		(1,230,342	)		(1,439,693	)		(3,582,965	)
Net increase (decrease)		(205,305	)		(326,274	)		2,250,438			247,232			(1,098,147	)		(2,068,107	)
Shares outstanding at end of year		381,274			586,579			4,312,256			2,061,818			3,070,770			4,168,917

Annual Report  75

	Lazard Global Listed Infrastructure Portfolio
	Year Ended December 31, 2010			Period Ended December 31, 2009**
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	2,744,722		$	(4	)
Net realized gain (loss) on investments, foreign currency and forward currency contracts		1,703,424			—
Net change in unrealized appreciation on investments, foreign currency and forward currency contracts		2,811,577			—
Net increase (decrease) in net assets resulting from operations		7,259,723			(4	)
Distributions to shareholders
From net investment income
Institutional Shares		(2,358,069	)		—
Open Shares		(1,520	)		—
From net realized gains
Institutional Shares		(1,083,838	)		—
Open Shares		(1,111	)		—
Net decrease in net assets resulting from distributions		(3,444,538	)		—
Capital stock transactions
Net proceeds from sales
Institutional Shares		138,755,505			73,899
Open Shares		115,519			50,000
Net proceeds from reinvestment of distributions
Institutional Shares		3,374,194			—
Open Shares		2,631			—
Cost of shares redeemed
Institutional Shares		(30,332,490	)		—
Open Shares		(56,269	)		—
Net increase in net assets from capital stock transactions		111,859,090			123,899
Redemption fees (Note 2(k))
Institutional Shares		86			—
Open Shares		—			—
Net increase in net assets from redemption fees		86			—
Total increase in net assets		115,674,361			123,895
Net assets at beginning of period		123,895			—
Net assets at end of period*	$	115,798,256		$	123,895
* Includes undistributed (distributions in excess of) investment income (loss) of	$	590,908		$	—
** 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		13,916,801			7,390
Shares issued to shareholders from reinvestment of distributions		334,745			—
Shares redeemed		(3,043,940	)		—
Net increase		11,207,606			7,390
Shares outstanding at end of period		11,214,996			7,390
Open Shares
Shares outstanding at beginning of period		5,000			—
Shares sold		11,565			5,000
Shares issued to shareholders from reinvestment of distributions		259			—
Shares redeemed		(5,376	)		—
Net increase (decrease)		6,448			5,000
Shares outstanding at end of period		11,448			5,000

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

76  Annual Report

	Lazard Emerging Markets Equity Portfolio						Lazard Developing Markets Equity Portfolio						Lazard Emerging Markets Equity Blend Portfolio
	Year Ended December 31, 2010			Year Ended December 31, 2009			Year Ended December 31, 2010			Year Ended December 31, 2009			Period Ended December 31, 2010†
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	283,104,469		$	173,491,609		$	(93,680	)	$	(73,007	)		$	(23,618	)
Net realized gain (loss) on investments, foreign currency and forward currency contracts		964,312,486			(1,134,986,477	)		13,355,744			4,740,733				448,609
Net change in unrealized appreciation on investments, foreign currency and forward currency contracts		2,041,977,043			4,905,051,593			8,697,741			9,714,986				2,345,247
Net increase (decrease) in net assets resulting from operations		3,289,393,998			3,943,556,725			21,959,805			14,382,712				2,770,238
Distributions to shareholders
From net investment income
Institutional Shares		(208,037,965	)		(213,098,743	)		(312,586	)		(53,044	)			—
Open Shares		(34,958,144	)		(75,965,459	)		(40,615	)		(9,449	)			—
From net realized gains
Institutional Shares		—			—			(6,060,192	)		(617,737	)			(70,487	)
Open Shares		—			—			(7,936,710	)		(1,313,171	)			(11,530	)
Net decrease in net assets resulting from distributions		(242,996,109	)		(289,064,202	)		(14,350,103	)		(1,993,401	)			(82,017	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		5,722,036,545			3,728,730,269			66,318,354			6,734,603				55,245,382
Open Shares		1,821,564,885			1,942,142,287			97,342,330			38,429,793				9,040,801
Net proceeds from reinvestment of distributions
Institutional Shares		179,495,263			179,344,209			5,794,490			637,253				65,828
Open Shares		31,783,216			68,872,759			7,451,122			1,304,978				8,599
Cost of shares redeemed
Institutional Shares		(2,071,983,700	)		(1,400,549,243	)		(22,612,052	)		(1,262,218	)			(2,993,369	)
Open Shares		(1,957,308,170	)		(628,483,832	)		(50,508,821	)		(2,158,324	)			(109,745	)
Net increase in net assets from capital stock transactions		3,725,588,039			3,890,056,449			103,785,423			43,686,085				61,257,496
Redemption fees (Note 2(k))
Institutional Shares		134,946			180,078			1,866			51				931
Open Shares		176,436			240,241			7,416			5,416				307
Net increase in net assets from redemption fees		311,382			420,319			9,282			5,467				1,238
Total increase in net assets		6,772,297,310			7,544,969,291			111,404,407			56,080,863				63,946,955
Net assets at beginning of period		11,975,994,614			4,431,025,323			62,977,619			6,896,756				—
Net assets at end of period*	$	18,748,291,924		$	11,975,994,614		$	174,382,026		$	62,977,619			$	63,946,955
* Includes undistributed (distributions in excess of) investment income (loss) of	$	(54,251,470	)	$	(121,241,529	)	$	(510,910	)	$	12,031			$	(165,475	)
** 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		471,812,807			303,003,714			1,517,818			999,421				—
Shares sold		296,372,547			255,663,716			4,360,301			604,160				4,641,041
Shares issued to shareholders from reinvestment of distributions		8,561,139			9,991,334			395,696			48,720				5,378
Shares redeemed		(108,233,757	)		(96,845,957	)		(1,458,342	)		(134,483	)			(244,302	)
Net increase		196,699,929			168,809,093			3,297,655			518,397				4,402,117
Shares outstanding at end of period		668,512,736			471,812,807			4,815,473			1,517,818				4,402,117
Open Shares
Shares outstanding at beginning of period		190,254,536			102,746,768			3,258,336			54,614				—
Shares sold		93,690,753			127,649,425			6,618,781			3,300,183				742,112
Shares issued to shareholders from reinvestment of distributions		1,465,197			3,780,047			505,715			99,693				704
Shares redeemed		(96,675,723	)		(43,921,704	)		(3,684,206	)		(196,154	)			(9,074	)
Net increase (decrease)		(1,519,773	)		87,507,768			3,440,290			3,203,722				733,742
Shares outstanding at end of period		188,734,763			190,254,536			6,698,626			3,258,336				733,742

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

Annual Report  77

	Lazard U.S. High Yield Portfolio
	Year Ended December 31, 2010			Year Ended December 31, 2009
Increase in Net Assets
Operations
Net investment income	$	8,037,397		$	5,648,000
Net realized gain (loss) on investments		1,545,110			(4,302,446	)
Net change in unrealized appreciation on investments		2,454,171			19,030,597
Net increase in net assets resulting from operations		12,036,678			20,376,151
Distributions to shareholders
From net investment income
Institutional Shares		(6,590,797	)		(5,077,021	)
Open Shares		(1,446,983	)		(570,610	)
Net decrease in net assets resulting from distributions		(8,037,780	)		(5,647,631	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		42,673,187			59,926,907
Open Shares		26,839,805			6,119,172
Net proceeds from reinvestment of distributions
Institutional Shares		4,407,235			3,298,041
Open Shares		1,367,239			347,431
Cost of shares redeemed
Institutional Shares		(25,372,482	)		(22,988,509	)
Open Shares		(8,917,586	)		(7,231,937	)
Net increase in net assets from capital stock transactions		40,997,398			39,471,105
Redemption fees (Note 2(k))
Institutional Shares		1,941			6,353
Open Shares		862			5,462
Net increase in net assets from redemption fees		2,803			11,815
Total increase in net assets		44,999,099			54,211,440
Net assets at beginning of year		93,694,090			39,482,650
Net assets at end of year*	$	138,693,189		$	93,694,090
*Includes distributions in excess of net investment income of	$	(182,300	)	$	(230,128	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		18,619,657			9,073,796
Shares sold		8,879,105			14,172,786
Shares issued to shareholders from reinvestment of distributions		919,525			765,009
Shares redeemed		(5,373,102	)		(5,391,934	)
Net increase		4,425,528			9,545,861
Shares outstanding at end of year		23,045,185			18,619,657
Open Shares
Shares outstanding at beginning of year		1,295,343			1,376,829
Shares sold		5,635,385			1,471,742
Shares issued to shareholders from reinvestment of distributions		283,468			79,651
Shares redeemed		(1,856,776	)		(1,632,879	)
Net increase (decrease)		4,062,077			(81,486	)
Shares outstanding at end of year		5,357,420			1,295,343

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

78  Annual Report

	Lazard Capital Allocator Opportunistic Strategies Portfolio
	Year Ended December 31, 2010			Year Ended December 31, 2009
Increase in Net Assets
Operations
Net investment income	$	2,861,801		$	2,803,446
Net realized gain (loss) on investments, options, swap agreements, foreign currency and forward currency contracts		13,319,211			(19,863,801	)
Net change in unrealized appreciation on investments, swap agreements, foreign currency and forward currency contracts		13,009,902			50,755,183
Net increase in net assets resulting from operations		29,190,914			33,694,828
Distributions to shareholders
From net investment income
Institutional Shares		(2,908,206	)		(2,690,734	)
Open Shares		(65,569	)		(184,678	)
Net decrease in net assets resulting from distributions		(2,973,775	)		(2,875,412	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		62,446,688			98,851,646
Open Shares		4,930,645			12,563,627
Net proceeds from reinvestment of distributions
Institutional Shares		1,420,474			1,515,440
Open Shares		54,295			65,857
Cost of shares redeemed
Institutional Shares		(46,165,900	)		(43,713,802	)
Open Shares		(15,133,445	)		(7,387,095	)
Net increase in net assets from capital stock transactions		7,552,757			61,895,673
Redemption fees (Note 2(k))
Institutional Shares		767			2,166
Open Shares		84			1,854
Net increase in net assets from redemption fees		851			4,020
Total increase in net assets		33,770,747			92,719,109
Net assets at beginning of year		212,795,056			120,075,947
Net assets at end of year*	$	246,565,803		$	212,795,056
*Includes undistributed (distributions in excess of) net investment income of	$	(113,014	)	$	20,548
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		22,278,416			15,043,527
Shares sold		6,796,364			12,450,610
Shares issued to shareholders from reinvestment of distributions		143,914			171,624
Shares redeemed		(5,182,770	)		(5,387,345	)
Net increase		1,757,508			7,234,889
Shares outstanding at end of year		24,035,924			22,278,416
Open Shares
Shares outstanding at beginning of year		1,914,353			1,264,077
Shares sold		535,756			1,555,062
Shares issued to shareholders from reinvestment of distributions		5,484			7,450
Shares redeemed		(1,736,882	)		(912,236	)
Net increase (decrease)		(1,195,642	)		650,276
Shares outstanding at end of year		718,711			1,914,353

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

Annual Report  79

The Lazard Funds, Inc. Financial Highlights

LAZARD U.S. EQUITY VALUE PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Institutional Shares
Net asset value, beginning of year	$	8.62		$	7.00		$	11.25		$	11.73		$	10.02
Income (loss) from investment operations:
Net investment income (a)		0.10			0.12			0.18			0.17			0.18
Net realized and unrealized gain (loss)		0.93			1.62			(4.26	)		0.05			2.33
Total from investment operations		1.03			1.74			(4.08	)		0.22			2.51
Less distributions from:
Net investment income		(0.09	)		(0.12	)		(0.17	)		(0.15	)		(0.62	)
Net realized gains		—			—			—			(0.55	)		(0.18	)
Total distributions		(0.09	)		(0.12	)		(0.17	)		(0.70	)		(0.80	)
Redemption fees		—	(c)		—			—			—	(c)		—
Net asset value, end of year	$	9.56		$	8.62		$	7.00		$	11.25		$	11.73
Total Return (b)		12.00	%		24.81	%		–36.18	%		1.65	%		25.23	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	13,066		$	8,464		$	6,554		$	8,488		$	390
Ratios to average net assets:
Net expenses		0.97	%		1.00	%		1.00	%		1.00	%		1.00	%
Gross expenses		2.76	%		3.44	%		3.21	%		3.56	%		112.90	%
Net investment income		1.19	%		1.60	%		1.90	%		1.40	%		1.57	%
Portfolio turnover rate		53	%		62	%		97	%		83	%		95	%
	Year Ended
Selected data for a share of capital
stock outstanding throughout each year	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Open Shares
Net asset value, beginning of year	$	8.67		$	7.04		$	11.31		$	11.77		$	10.02
Income (loss) from investment operations:
Net investment income (a)		0.08			0.09			0.15			0.13			0.12
Net realized and unrealized gain (loss)		0.93			1.64			(4.28	)		0.06			2.37
Total from investment operations		1.01			1.73			(4.13	)		0.19			2.49
Less distributions from:
Net investment income		(0.07	)		(0.10	)		(0.14	)		(0.11	)		(0.56	)
Net realized gains		—			—			—			(0.55	)		(0.18	)
Total distributions		(0.07	)		(0.10	)		(0.14	)		(0.66	)		(0.74	)
Redemption fees		—			—	(c)		—			0.01			—
Net asset value, end of year	$	9.61		$	8.67		$	7.04		$	11.31		$	11.77
Total Return (b)		11.62	%		24.49	%		–36.43	%		1.59	%		24.83	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	294		$	300		$	134		$	341		$	240
Ratios to average net assets:
Net expenses		1.27	%		1.30	%		1.30	%		1.30	%		1.30	%
Gross expenses		7.28	%		5.52	%		12.10	%		9.40	%		138.32	%
Net investment income		0.88	%		1.15	%		1.56	%		1.02	%		1.05	%
Portfolio turnover rate		53	%		62	%		97	%		83	%		95	%

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

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

80  Annual Report

LAZARD U.S. STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Institutional Shares
Net asset value, beginning of year	$	8.02		$	6.26		$	10.03		$	11.81		$	10.38
Income (loss) from investment operations:
Net investment income (a)		0.07			0.08			0.12			0.11			0.08
Net realized and unrealized gain (loss)		0.97			1.68			(3.65	)		(0.04	)		1.73
Total from investment operations		1.04			1.76			(3.53	)		0.07			1.81
Less distributions from:
Net investment income		(0.09	)		—			(0.12	)		(0.12	)		(0.07	)
Net realized gains		—			—			(0.12	)		(1.73	)		(0.31	)
Total distributions		(0.09	)		—			(0.24	)		(1.85	)		(0.38	)
Redemption fees		—	(c)		—			—			—			—	(c)
Net asset value, end of year	$	8.97		$	8.02		$	6.26		$	10.03		$	11.81
Total Return (b)		13.13	%		28.12	%		–35.43	%		0.33	%		17.44	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	71,207		$	66,153		$	54,749		$	88,242		$	117,194
Ratios to average net assets:
Net expenses		1.01	%		1.05	%		1.05	%		0.98	%		1.05	%
Gross expenses		1.06	%		1.09	%		1.06	%		0.98	%		1.35	%
Net investment income		0.88	%		1.26	%		1.45	%		0.86	%		0.71	%
Portfolio turnover rate		49	%		76	%		82	%		58	%		82	%
Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Open Shares
Net asset value, beginning of year	$	8.02		$	6.28		$	10.05		$	11.83		$	10.39
Income (loss) from investment operations:
Net investment income (a)		0.05			0.07			0.10			0.06			—	(c)
Net realized and unrealized gain (loss)		0.97			1.67			(3.65	)		(0.03	)		1.79
Total from investment operations		1.02			1.74			(3.55	)		0.03			1.79
Less distributions from:
Net investment income		(0.07	)		—			(0.10	)		(0.08	)		(0.04	)
Net realized gains		—			—			(0.12	)		(1.73	)		(0.31	)
Total distributions		(0.07	)		—			(0.22	)		(1.81	)		(0.35	)
Redemption fees		—	(c)		—			—			—	(c)		—
Net asset value, end of year	$	8.97		$	8.02		$	6.28		$	10.05		$	11.83
Total Return (b)		12.79	%		27.71	%		–35.63	%		–0.07	%		17.20	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	10,024		$	8,945		$	7,218		$	11,558		$	11,836
Ratios to average net assets:
Net expenses		1.31	%		1.35	%		1.35	%		1.35	%		1.35	%
Gross expenses		1.44	%		1.39	%		1.51	%		1.40	%		7.38	%
Net investment income		0.59	%		0.96	%		1.15	%		0.50	%		0.03	%
Portfolio turnover rate		49	%		76	%		82	%		58	%		82	%

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

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

Annual Report  81

LAZARD U.S. MID CAP EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Institutional Shares
Net asset value, beginning of year	$	10.31		$	7.50		$	12.46		$	14.41		$	13.23
Income (loss) from investment operations:
Net investment income (a)		0.10			0.08			0.15			0.12			0.09
Net realized and unrealized gain (loss)		2.31			2.81			(4.93	)		(0.51	)		1.88
Total from investment operations		2.41			2.89			(4.78	)		(0.39	)		1.97
Less distributions from:
Net investment income		(0.11	)		(0.08	)		(0.18	)		(0.11	)		(0.08	)
Net realized gains		—			—			—			(1.45	)		(0.71	)
Total distributions		(0.11	)		(0.08	)		(0.18	)		(1.56	)		(0.79	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	12.61		$	10.31		$	7.50		$	12.46		$	14.41
Total Return (b)		23.43	%		38.49	%		–38.33	%		–2.93	%		14.85	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	126,626		$	143,267		$	103,650		$	277,953		$	235,367
Ratios to average net assets:
Net expenses		0.91	%		0.91	%		0.89	%		0.87	%		0.89	%
Gross expenses		0.91	%		0.91	%		0.89	%		0.87	%		0.89	%
Net investment income		0.90	%		0.90	%		1.41	%		0.81	%		0.66	%
Portfolio turnover rate		75	%		77	%		81	%		100	%		76	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Open Shares
Net asset value, beginning of year	$	10.18		$	7.40		$	12.29		$	14.23		$	13.07
Income (loss) from investment operations:
Net investment income (a)		0.07			0.05			0.13			0.09			0.05
Net realized and unrealized gain (loss)		2.28			2.78			(4.87	)		(0.51	)		1.86
Total from investment operations		2.35			2.83			(4.74	)		(0.42	)		1.91
Less distributions from:
Net investment income		(0.08	)		(0.05	)		(0.15	)		(0.07	)		(0.04	)
Net realized gains		—			—			—			(1.45	)		(0.71	)
Total distributions		(0.08	)		(0.05	)		(0.15	)		(1.52	)		(0.75	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	12.45		$	10.18		$	7.40		$	12.29		$	14.23
Total Return (b)		23.09	%		38.26	%		–38.53	%		–3.17	%		14.57	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	69,551		$	69,737		$	64,372		$	158,062		$	80,410
Ratios to average net assets:
Net expenses		1.17	%		1.17	%		1.15	%		1.13	%		1.18	%
Gross expenses		1.17	%		1.17	%		1.15	%		1.13	%		1.18	%
Net investment income		0.66	%		0.64	%		1.17	%		0.58	%		0.37	%
Portfolio turnover rate		75	%		77	%		81	%		100	%		76	%

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

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

82  Annual Report

LAZARD U.S. SMALL-MID CAP EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Institutional Shares
Net asset value, beginning of year	$	11.80		$	7.59		$	11.58		$	14.44		$	15.40
Income (loss) from investment operations:
Net investment income (loss) (a)		0.09			(0.01	)		0.01			0.04			0.02
Net realized and unrealized gain (loss)		2.70			4.22			(4.00	)		(0.87	)		2.60
Total from investment operations		2.79			4.21			(3.99	)		(0.83	)		2.62
Less distributions from:
Net investment income		(0.04	)		—			—			(0.04	)		(0.01	)
Net realized gains		—			—			—			(1.99	)		(3.57	)
Total distributions		(0.04	)		—			—			(2.03	)		(3.58	)
Redemption fees		—	(c)		—			—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	14.55		$	11.80		$	7.59		$	11.58		$	14.44
Total Return (b)		23.67	%		55.47	%		–34.46	%		–6.38	%		17.11	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	238,901		$	56,042		$	36,934		$	109,853		$	196,483
Ratios to average net assets:
Net expenses		1.00	%		1.22	%		1.13	%		0.93	%		0.91	%
Gross expenses		1.00	%		1.23	%		1.13	%		0.93	%		0.91	%
Net investment income (loss)		0.68	%		–0.12	%		0.08	%		0.24	%		0.10	%
Portfolio turnover rate		114	%		195	%		138	%		98	%		86	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Open Shares
Net asset value, beginning of year	$	11.56		$	7.46		$	11.43		$	14.27		$	15.29
Income (loss) from investment operations:
Net investment income (loss) (a)		0.03			(0.04	)		(0.03	)		(0.01	)		(0.03	)
Net realized and unrealized gain (loss)		2.67			4.14			(3.94	)		(0.84	)		2.58
Total from investment operations		2.70			4.10			(3.97	)		(0.85	)		2.55
Less distributions from:
Net realized gains		—			—			—			(1.99	)		(3.57	)
Total distributions		—			—			—			(1.99	)		(3.57	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	14.26		$	11.56		$	7.46		$	11.43		$	14.27
Total Return (b)		23.36	%		54.96	%		–34.73	%		–6.60	%		16.77	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	21,620		$	19,531		$	10,500		$	25,203		$	35,627
Ratios to average net assets:
Net expenses		1.34	%		1.51	%		1.49	%		1.25	%		1.23	%
Gross expenses		1.34	%		1.52	%		1.49	%		1.25	%		1.23	%
Net investment income (loss)		0.21	%		–0.40	%		–0.26	%		–0.07	%		–0.21	%
Portfolio turnover rate		114	%		195	%		138	%		98	%		86	%

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

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

Annual Report  83

LAZARD INTERNATIONAL EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Institutional Shares
Net asset value, beginning of year	$	13.14		$	10.50		$	17.55		$	16.31		$	14.00
Income (loss) from investment operations:
Net investment income (a)		0.21			0.26			0.36			0.36			0.33
Net realized and unrealized gain (loss)		0.82			2.38			(7.00	)		1.42			2.83
Total from investment operations		1.03			2.64			(6.64	)		1.78			3.16
Less distributions from:
Net investment income		(0.36	)		—	(c)		(0.41	)		(0.54	)		(0.85	)
Total distributions		(0.36	)		—	(c)		(0.41	)		(0.54	)		(0.85	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	13.81		$	13.14		$	10.50		$	17.55		$	16.31
Total Return (b)		8.04	%		25.19	%		–37.75	%		10.96	%		22.92	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	127,485		$	139,070		$	119,870		$	335,323		$	701,145
Ratios to average net assets:
Net expenses		0.98	%		0.99	%		0.93	%		0.89	%		0.84	%
Gross expenses		0.98	%		0.99	%		0.93	%		0.89	%		0.84	%
Net investment income		1.63	%		2.33	%		2.47	%		2.08	%		2.14	%
Portfolio turnover rate		53	%		66	%		44	%		50	%		68	%
Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Open Shares
Net asset value, beginning of year	$	13.24		$	10.60		$	17.69		$	16.40		$	14.03
Income (loss) from investment operations:
Net investment income (a)		0.16			0.22			0.31			0.32			0.25
Net realized and unrealized gain (loss)		0.83			2.42			(7.04	)		1.41			2.87
Total from investment operations		0.99			2.64			(6.73	)		1.73			3.12
Less distributions from:
Net investment income		(0.32	)		—			(0.36	)		(0.44	)		(0.75	)
Total distributions		(0.32	)		—			(0.36	)		(0.44	)		(0.75	)
Redemption fees		—	(c)		—			—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	13.91		$	13.24		$	10.60		$	17.69		$	16.40
Total Return (b)		7.65	%		24.91	%		–37.98	%		10.57	%		22.59	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	28,670		$	19,520		$	14,829		$	32,449		$	49,657
Ratios to average net assets:
Net expenses		1.29	%		1.27	%		1.28	%		1.19	%		1.15	%
Gross expenses		1.29	%		1.27	%		1.28	%		1.19	%		1.15	%
Net investment income		1.25	%		1.98	%		2.16	%		1.89	%		1.63	%
Portfolio turnover rate		53	%		66	%		44	%		50	%		68	%

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

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

84  Annual Report

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

Selected data for a share of capitalstock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Institutional Shares
Net asset value, beginning of year	$	7.70		$	6.39		$	11.78		$	13.07		$	11.73
Income (loss) from investment operations:
Net investment income (a)		0.14			0.17			0.30			0.22			0.25
Net realized and unrealized gain (loss)		0.49			1.16			(4.73	)		0.97			2.43
Total from investment operations		0.63			1.33			(4.43	)		1.19			2.68
Less distributions from:
Net investment income		(0.34	)		(0.02	)		(0.33	)		(0.25	)		(0.23	)
Net realized gains		—			—			(0.63	)		(2.23	)		(1.11	)
Total distributions		(0.34	)		(0.02	)		(0.96	)		(2.48	)		(1.34	)
Redemption fees		—			—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	7.99		$	7.70		$	6.39		$	11.78		$	13.07
Total Return (b)		8.49	%		20.86	%		–38.74	%		9.25	%		23.01	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	3,614		$	3,925		$	3,860		$	12,103		$	16,677
Ratios to average net assets:
Net expenses		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses		5.08	%		3.46	%		2.24	%		1.67	%		1.85	%
Net investment income		1.80	%		2.52	%		3.06	%		1.58	%		1.90	%
Portfolio turnover rate		75	%		67	%		52	%		50	%		40	%
Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Open Shares
Net asset value, beginning of year	$	7.72		$	6.41		$	11.81		$	13.10		$	11.75
Income (loss) from investment operations:
Net investment income (a)		0.12			0.14			0.26			0.16			0.21
Net realized and unrealized gain (loss)		0.49			1.17			(4.73	)		0.99			2.44
Total from investment operations		0.61			1.31			(4.47	)		1.15			2.65
Less distributions from:
Net investment income		(0.31	)		—	(c)		(0.30	)		(0.21	)		(0.19	)
Net realized gains		—			—			(0.63	)		(2.23	)		(1.11	)
Total distributions		(0.31	)		—	(c)		(0.93	)		(2.44	)		(1.30	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	8.02		$	7.72		$	6.41		$	11.81		$	13.10
Total Return (b)		8.29	%		20.49	%		–39.00	%		8.92	%		22.72	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	3,056		$	4,530		$	5,853		$	13,916		$	12,545
Ratios to average net assets:
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Gross expenses		5.31	%		3.62	%		2.47	%		1.95	%		2.13	%
Net investment income		1.56	%		2.11	%		2.67	%		1.21	%		1.65	%
Portfolio turnover rate		75	%		67	%		52	%		50	%		40	%

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

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

Annual Report  85

LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO

	Year Ended
Selected data for a share of capitalstock outstanding throughout each year
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Institutional Shares
Net asset value, beginning of year	$	9.41		$	7.51		$	12.92		$	12.66		$	10.79
Income (loss) from investment operations:
Net investment income (a)		0.13			0.20			0.26			0.23			0.19
Net realized and unrealized gain (loss)		1.22			1.88			(5.43	)		1.36			2.64
Total from investment operations		1.35			2.08			(5.17	)		1.59			2.83
Less distributions from:
Net investment income		(0.13	)		(0.18	)		(0.22	)		(0.25	)		(0.15	)
Net realized gains		—			—			(0.02	)		(1.08	)		(0.81	)
Total distributions		(0.13	)		(0.18	)		(0.24	)		(1.33	)		(0.96	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	10.63		$	9.41		$	7.51		$	12.92		$	12.66
Total Return (b)		14.43	%		27.76	%		–39.98	%		12.88	%		26.22	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	356,098		$	311,570		$	245,604		$	418,584		$	343,931
Ratios to average net assets:
Net expenses		0.90	%		0.91	%		0.90	%		0.88	%		0.94	%
Gross expenses		0.90	%		0.91	%		0.90	%		0.88	%		0.94	%
Net investment income		1.30	%		2.42	%		2.48	%		1.70	%		1.57	%
Portfolio turnover rate		55	%		129	%		72	%		84	%		68	%
	Year Ended												For the Period 2/3/06* to 12/31/06
Selected data for a share of capital stock outstanding throughout each period
	12/31/10			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)		0.09			0.16			0.23			0.17			0.12
Net realized and unrealized gain (loss)		1.24			1.90			(5.42	)		1.37			1.93
Total from investment operations		1.33			2.06			(5.19	)		1.54			2.05
Less distributions from:
Net investment income		(0.08	)		(0.14	)		(0.18	)		(0.20	)		(0.09	)
Net realized gains		—			—			(0.02	)		(1.08	)		(0.81	)
Total distributions		(0.08	)		(0.14	)		(0.20	)		(1.28	)		(0.90	)
Redemption fees		—	(c)		—	(c)		—	(c)		—			—	(c)
Net asset value, end of period	$	10.68		$	9.43		$	7.51		$	12.90		$	12.64
Total Return (b)		14.09	%		27.38	%		–40.18	%		12.37	%		17.90	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	46,051		$	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)		0.89	%		1.98	%		2.23	%		1.29	%		1.10	%
Portfolio turnover rate		55	%		129	%		72	%		84	%		68	%

*	The inception date for Open Shares was February 3, 2006.
(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.

86  Annual Report

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO

	Year Ended
Selected data for a share of capital stock outstanding throughout each year
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Institutional Shares
Net asset value, beginning of year	$	6.68		$	4.80		$	10.49		$	17.80		$	17.10
Income (loss) from investment operations:
Net investment income (a)		0.10			0.08			0.15			0.27			0.22
Net realized and unrealized gain (loss)		1.45			1.80			(5.19	)		(1.20	)		4.16
Total from investment operations		1.55			1.88			(5.04	)		(0.93	)		4.38
Less distributions from:
Net investment income		(0.11	)		—			(0.14	)		(0.63	)		(0.25	)
Net realized gains		—			—			(0.51	)		(5.75	)		(3.43	)
Total distributions		(0.11	)		—			(0.65	)		(6.38	)		(3.68	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	8.12		$	6.68		$	4.80		$	10.49		$	17.80
Total Return (b)		23.55	%		39.17	%		–49.84	%		–4.61	%		26.31	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	47,134		$	40,243		$	74,640		$	129,725		$	698,166
Ratios to average net assets:
Net expenses		1.13	%		1.17	%		0.98	%		0.91	%		0.86	%
Gross expenses		1.21	%		1.21	%		0.98	%		0.91	%		0.86	%
Net investment income		1.39	%		1.55	%		1.81	%		1.48	%		1.20	%
Portfolio turnover rate		41	%		51	%		61	%		59	%		49	%
	Year Ended
Selected data for a share of capital stock outstanding throughout each year
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Open Shares
Net asset value, beginning of year	$	6.70		$	4.82		$	10.51		$	17.77		$	17.09
Income (loss) from investment operations:
Net investment income (a)		0.08			0.07			0.13			0.21			0.17
Net realized and unrealized gain (loss)		1.45			1.81			(5.20	)		(1.17	)		4.13
Total from investment operations		1.53			1.88			(5.07	)		(0.96	)		4.30
Less distributions from:
Net investment income		(0.09	)		—			(0.11	)		(0.55	)		(0.19	)
Net realized gains		—			—			(0.51	)		(5.75	)		(3.43	)
Total distributions		(0.09	)		—			(0.62	)		(6.30	)		(3.62	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	8.14		$	6.70		$	4.82		$	10.51		$	17.77
Total Return (b)		23.13	%		39.00	%		–50.02	%		–4.79	%		25.83	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	24,984		$	27,920		$	30,052		$	89,779		$	137,358
Ratios to average net assets:
Net expenses		1.43	%		1.43	%		1.31	%		1.20	%		1.19	%
Gross expenses		1.49	%		1.48	%		1.31	%		1.20	%		1.19	%
Net investment income		1.09	%		1.28	%		1.56	%		1.17	%		0.89	%
Portfolio turnover rate		41	%		51	%		61	%		59	%		49	%

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

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

Annual Report  87

LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/10			Period Ended 12/31/09*
Institutional Shares*
Net asset value, beginning of period	$	10.00		$	10.00
Income from investment operations:
Net investment income (loss) (a)		0.30			—	(c)
Net realized and unrealized gain		0.34			—
Total from investment operations		0.64			—	(c)
Less distributions from:
Net investment income		(0.23	)		—
Net realized gains		(0.10	)		—
Total distributions		(0.33	)		—
Redemption fees		—	(c)		—
Net asset value, end of period	$	10.31		$	10.00
Total Return (b)		6.63	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	115,680		$	74
Ratios to average net assets:
Net expenses (d)		1.30	%		1.30	%
Gross expenses (d)		1.35	%		1,825.00	%(e)
Net investment income (loss) (d)		3.01	%		–1.30	%
Portfolio turnover rate		46	%		0	%
Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/10			Period Ended 12/31/09*
Open Shares
Net asset value, beginning of period	$	10.00		$	10.00
Income from investment operations:
Net investment income (loss) (a)		0.24			—	(c)
Net realized and unrealized gain		0.38			—
Total from investment operations		0.62			—	(c)
Less distributions from:
Net investment income		(0.18	)		—
Net realized gains		(0.10	)		—
Total distributions		(0.28	)		—
Net asset value, end of period	$	10.34		$	10.00
Total Return (b)		6.28	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	118		$	50
Ratios to average net assets:
Net expenses (d)		1.60	%		1.60	%
Gross expenses (d)		18.06	%		1,825.00	%(e)
Net investment income (loss) (d)		2.37	%		–1.60	%
Portfolio turnover rate		46	%		0	%

*	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 or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
(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.

88  Annual Report

LAZARD EMERGING MARKETS EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Institutional Shares
Net asset value, beginning of year	$	18.01		$	10.88		$	23.88		$	20.60		$	17.84
Income (loss) from investment operations:
Net investment income (a)		0.38			0.35			0.61			0.36			0.33
Net realized and unrealized gain (loss)		3.71			7.24			(11.78	)		6.41			4.98
Total from investment operations		4.09			7.59			(11.17	)		6.77			5.31
Less distributions from:
Net investment income		(0.32	)		(0.46	)		(0.49	)		(0.29	)		(0.27	)
Net realized gains		—			—			(1.34	)		(3.20	)		(2.28	)
Total distributions		(0.32	)		(0.46	)		(1.83	)		(3.49	)		(2.55	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	21.78		$	18.01		$	10.88		$	23.88		$	20.60
Total Return (b)		22.81	%		69.82	%		–47.88	%		33.05	%		30.32	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	14,561,085		$	8,497,341		$	3,295,983		$	5,270,497		$	2,744,753
Ratios to average net assets:
Net expenses		1.14	%		1.15	%		1.17	%		1.20	%		1.20	%
Gross expenses		1.14	%		1.15	%		1.17	%		1.20	%		1.20	%
Net investment income		1.96	%		2.40	%		3.16	%		1.51	%		1.67	%
Portfolio turnover rate		23	%		49	%		43	%		53	%		46	%
Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Open Shares
Net asset value, beginning of year	$	18.28		$	11.05		$	24.17		$	20.82		$	17.99
Income (loss) from investment operations:
Net investment income (a)		0.34			0.29			0.52			0.29			0.26
Net realized and unrealized gain (loss)		3.76			7.35			(11.87	)		6.47			5.03
Total from investment operations		4.10			7.64			(11.35	)		6.76			5.29
Less distributions from:
Net investment income		(0.19	)		(0.41	)		(0.43	)		(0.22	)		(0.18	)
Net realized gains		—			—			(1.34	)		(3.20	)		(2.28	)
Total distributions		(0.19	)		(0.41	)		(1.77	)		(3.42	)		(2.46	)
Redemption fees		—	(c)		—	(c)		—	(c)		0.01			—	(c)
Net asset value, end of year	$	22.19		$	18.28		$	11.05		$	24.17		$	20.82
Total Return (b)		22.43	%		69.14	%		–48.09	%		32.71	%		29.93	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	4,187,207		$	3,478,654		$	1,135,042		$	1,467,458		$	441,673
Ratios to average net assets:
Net expenses		1.49	%		1.55	%		1.53	%(d)		1.47	%(d)		1.54	%
Gross expenses		1.49	%		1.55	%		1.54	%		1.48	%		1.54	%
Net investment income		1.73	%		1.94	%		2.72	%		1.19	%		1.30	%
Portfolio turnover rate		23	%		49	%		43	%		53	%		46	%

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

Annual Report  89

LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO

	Year Ended						For the Period 9/30/08* to 12/31/08
Selected data for a share of capital stock outstanding throughout each period
	12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	13.18		$	6.54		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.02			0.01			0.01
Net realized and unrealized gain (loss)		3.63			7.09			(3.46	)
Total from investment operations		3.65			7.10			(3.45	)
Less distributions from:
Net investment income		(0.09	)		(0.04	)		(0.01	)
Net realized gains		(1.62	)		(0.42	)		—
Total distributions		(1.71	)		(0.46	)		(0.01	)
Redemption fees		—	(c)		—	(c)		—
Net asset value, end of period	$	15.12		$	13.18		$	6.54
Total Return (b)		28.62	%		108.53	%		–34.54	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	72,798		$	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)		0.15	%		0.07	%		0.34	%
Portfolio turnover rate		112	%		96	%		72	%
Selected data for a share of capital stock outstanding throughout each period	Year Ended						For the Period 9/30/08* to
	12/31/10			12/31/09			12/31/08
Open Shares
Net asset value, beginning of period	$	13.19		$	6.55		$	10.00
Income (loss) from investment operations:
Net investment loss (a)		(0.05	)		(0.08	)		—	(c)
Net realized and unrealized gain (loss)		3.65			7.13			(3.45	)
Total from investment operations		3.60			7.05			(3.45	)
Less distributions from:
Net investment income		(0.01	)		—	(c)		—
Net realized gains		(1.62	)		(0.42	)		—
Total distributions		(1.63	)		(0.42	)		—
Redemption fees		—	(c)		0.01			—
Net asset value, end of period	$	15.16		$	13.19		$	6.55
Total Return (b)		28.13	%		108.17	%		–34.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	101,584		$	42,975		$	357
Ratios to average net assets:
Net expenses (d)		1.60	%		1.60	%		1.60	%
Gross expenses (d)		1.85	%		2.54	%		28.95	%
Net investment loss (d)		–0.33	%		–0.63	%		–0.09	%
Portfolio turnover rate		112	%		96	%		72	%

*	Portfolio commenced operations on September 30, 2008.
(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.

90  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 12/31/10
Institutional Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment loss (a)		(0.01	)
Net realized and unrealized gain		2.48
Total from investment operations		2.47
Less distributions from:
Net realized gains		(0.02	)
Total distributions		(0.02	)
Redemption fees		—	(c)
Net asset value, end of period	$	12.45
Total Return (b)		24.66	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	54,826
Ratios to average net assets:
Net expenses (d)		1.35	%
Gross expenses (d)		6.24	%
Net investment loss (d)		–0.16	%
Portfolio turnover rate		62	%
Selected data for a share of capital stock outstanding throughout the period	For the Period 5/28/10* to 12/31/10
Open Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment loss (a)		(0.05	)
Net realized and unrealized gain		2.50
Total from investment operations		2.45
Less distributions from:
Net realized gains		(0.02	)
Total distributions		(0.02	)
Redemption fees		—	(c)
Net asset value, end of period	$	12.43
Total Return (b)		24.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	9,121
Ratios to average net assets:
Net expenses (d)		1.65	%
Gross expenses (d)		6.06	%
Net investment loss (d)		–0.70	%
Portfolio turnover rate		62	%

*	Portfolio commenced operations on May 28, 2010.
(a)	Net investment 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, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Amount is less than $0.01 per share.
(d)	Annualized for a period of less than one year.

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

Annual Report  91

LAZARD U.S. HIGH YIELD PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Institutional Shares
Net asset value, beginning of year	$	4.70		$	3.78		$	5.15		$	5.36		$	5.27
Income (loss) from investment operations:
Net investment income (a)		0.35			0.34			0.38			0.40			0.40
Net realized and unrealized gain (loss)		0.18			0.92			(1.37	)		(0.21	)		0.09
Total from investment operations		0.53			1.26			(0.99	)		0.19			0.49
Less distributions from:
Net investment income		(0.35	)		(0.34	)		(0.38	)		(0.40	)		(0.40	)
Total distributions		(0.35	)		(0.34	)		(0.38	)		(0.40	)		(0.40	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—
Net asset value, end of year	$	4.88		$	4.70		$	3.78		$	5.15		$	5.36
Total Return (b)		11.78	%		34.66	%		–20.24	%		3.63	%		9.71	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	112,427		$	87,568		$	34,262		$	56,278		$	68,452
Ratios to average net assets:
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Gross expenses		0.80	%		0.89	%		1.00	%		0.90	%		0.90	%
Net investment income		7.38	%		7.96	%		8.10	%		7.56	%		7.61	%
Portfolio turnover rate		25	%		17	%		33	%		20	%		29	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/10			12/31/09			12/31/08			12/31/07			12/31/06
Open Shares
Net asset value, beginning of year	$	4.73		$	3.79		$	5.17		$	5.37		$	5.29
Income (loss) from investment operations:
Net investment income (a)		0.34			0.33			0.37			0.39			0.39
Net realized and unrealized gain (loss)		0.17			0.94			(1.38	)		(0.21	)		0.08
Total from investment operations		0.51			1.27			(1.01	)		0.18			0.47
Less distributions from:
Net investment income		(0.34	)		(0.33	)		(0.37	)		(0.39	)		(0.39	)
Total distributions		(0.34	)		(0.33	)		(0.37	)		(0.39	)		(0.39	)
Redemption fees		—	(c)		—	(c)		—	(c)		0.01			—
Net asset value, end of year	$	4.90		$	4.73		$	3.79		$	5.17		$	5.37
Total Return (b)		11.19	%		34.40	%		–20.35	%		3.53	%		9.18	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	26,266		$	6,126		$	5,220		$	1,776		$	2,179
Ratios to average net assets:
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Gross expenses		1.13	%		1.21	%		1.74	%		2.14	%		2.12	%
Net investment income		7.05	%		7.74	%		7.89	%		7.24	%		7.29	%
Portfolio turnover rate		25	%		17	%		33	%		20	%		29	%

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

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

92  Annual Report

LAZARD CAPITAL ALLOCATOR OPPORTUNISTIC STRATEGIES PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended						For the Period 3/26/08* to 12/31/08
	12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	8.80		$	7.36		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.12			0.14			0.21
Net realized and unrealized gain (loss)		1.16			1.42			(2.59	)
Total from investment operations		1.28			1.56			(2.38	)
Less distributions from:
Net investment income		(0.12	)		(0.12	)		(0.26	)
Total distributions		(0.12	)		(0.12	)		(0.26	)
Redemption fees		—	(c)		—	(c)		—	(c)
Net asset value, end of period	$	9.96		$	8.80		$	7.36
Total Return (b)		14.58	%		21.21	%		–23.64	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	239,403		$	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)		1.36	%		1.72	%		3.01	%
Portfolio turnover rate		117	%		113	%		94	%
Selected data for a share of capital stock outstanding throughout each period	Year Ended						For the Period 3/31/08* to 12/31/08
	12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	8.80		$	7.37		$	9.95
Income (loss) from investment operations:
Net investment income (a)		0.06			0.12			0.30
Net realized and unrealized gain (loss)		1.20			1.41			(2.64	)
Total from investment operations		1.26			1.53			(2.34	)
Less distributions from:
Net investment income		(0.09	)		(0.10	)		(0.24	)
Total distributions		(0.09	)		(0.10	)		(0.24	)
Redemption fees		—	(c)		—	(c)		—	(c)
Net asset value, end of period	$	9.97		$	8.80		$	7.37
Total Return (b)		14.35	%		20.71	%		–23.44	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	7,163		$	16,856		$	9,319
Ratios to average net assets:
Net expenses (d)		1.32	%		1.32	%		1.32	%
Gross expenses (d)		1.52	%		1.44	%		1.93	%
Net investment income (d)		0.66	%		1.44	%		4.68	%
Portfolio turnover rate		117	%		113	%		94	%

*	Institutional Shares and Open Shares commenced operations on March 26, 2008 and March 31, 2008, respectively.
(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Amount is less than $0.01 per share.
(d)	Annualized for a period of less than one year.

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

Annual Report  93

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2010

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 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. Investments in money market funds are valued at the fund’s net asset value. Repurchase agreements are valued at their principal amounts plus accrued interest.

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 (including restricted or other illiquid securities such as derivative instruments), 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 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 also will 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 Portfo-

94  Annual Report

lio 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 from the most recent closing price of a security and from the prices used by other investment companies to calculate their portfolios’ net asset values.

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

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 records 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.

Annual Report  95

Capital Allocator Opportunistic Strategies Portfolio
Year Ended December 31, 2010

Transactions in options written were as follows:

Written Options	Number of Contracts		Premiums
Options outstanding at beginning of year		—	$	—
Options written		500		64,874
Options expired		500		64,874
Options outstanding at end of year		—	$	—

Transactions in options purchased were as follows:

Purchased Options	Number of Contracts		Amount
Options outstanding at beginning of the year		—	$	—
Options purchased		4,200		2,434,900
Options outstanding at end of year		4,200	$	2,434,900

None of the other Portfolios in the Fund traded in options during the year ended December 31, 2010.

(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 year ended December 31, 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 (the “Code”) and to distribute all of its taxable income, including any net realized capital gains, to shareholders. Therefore, no federal income tax provision is required.

At December 31, 2010, 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 2011
International Equity			$	11,175,692
U.S. High Yield				944,017
Portfolio	Expiring 2016		Expiring 2017
U.S. Equity Value	$	993,822	$	1,691,984
U.S. Strategic Equity		9,727,449		14,362,392
U.S. Mid Cap Equity		48,056,883		40,427,588
U.S. Small-Mid Cap Equity		—		368,331
International Equity		1,141,203		30,343,230
International Equity Select		876,488		2,653,216
International Strategic Equity		25,909,181		60,710,573
International Small Cap Equity		27,930,381		50,821,243
Emerging Markets Equity		—		537,763,761
U.S. High Yield		1,590,672		5,346,358
Capital Allocator Opportunistic
Strategies		—		25,116,831
Portfolio			Expiring 2018
International Equity			$	5,103,235
International Equity Select				1,173,332
International Small Cap Equity				4,306,478

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, 2010, the following Portfolios elected to defer net capital and foreign currency losses arising between November 1, 2010 and December 31, 2010 as follows:

Portfolio		Amount
International Equity	$	2,115,081
International Equity Select		82,296
Developing Markets Equity		110,678
Emerging Markets Equity Blend		116,406

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 (2007-2009), or expected to be taken in the Fund’s 2010 tax returns.

96  Annual Report

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

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

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2010		2009		2010		2009
U.S. Equity Value
Institutional	$	126,683	$	113,788	$	—	$	—
Open		2,060		3,262		—		—
U.S. Strategic
Equity
Institutional		724,232		—		—		—
Open		77,713		—		—		—
U.S. Mid Cap
Equity
Institutional		1,096,389		1,061,800		—		—
Open		483,080		362,964		—		—
U.S. Small-Mid
Cap Equity
Institutional		716,032		—		—		—
Open		—		—		—		—
International
Equity
Institutional		3,382,382		50,545		—		—
Open		478,939		—		—		—
International
Equity Select
Institutional		103,546		11,249		—		—
Open		130,875		2,723		—		—
International
Strategic Equity
Institutional		4,610,208		6,008,173		—		—
Open		293,349		269,925		—		—
International
Small Cap
Equity
Institutional		672,354		—		—		—
Open		321,023		—		—		—
Global Listed
Infrastructure
Institutional		3,441,907		—		—		—
Open		2,631		—		—		—
Emerging
Markets
Equity
Institutional		208,037,965		213,098,743		—		—
Open		34,958,144		75,965,459		—		—
Developing
Markets Equity
Institutional		5,688,374		623,953		684,404		46,828
Open		6,938,315		1,223,075		1,039,010		99,545
Emerging
Markets
Equity Blend
Institutional		70,487		—		—		—
Open		11,530		—		—		—
U.S. High Yield
Institutional		6,590,797		5,077,021		—		—
Open		1,446,983		570,610		—		—
Capital Allocator
Opportunistic
Strategies
Institutional		2,908,206		2,690,734		—		—
Open		65,569		184,678		—		—

Annual Report  97

As of December 31, 2010, the components of distributable earnings, on a tax basis, not disclosed elsewhere, were as follows:

Portfolio	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation Including Foreign Currency		Other Temporary Differences
U.S. Equity Value	$	—	$	—	$	1,200,558	$	(16,988	)
U.S. Strategic Equity		635,059		—		12,970,696		—
U.S. Mid Cap Equity		—		—		28,720,425		—
U.S. Small-Mid Cap Equity		—		—		33,722,388		—
International Equity		2,761,712		—		22,795,210		—
International Equity Select		182,180		—		768,046		—
International Strategic Equity		1,423,137		—		65,911,388		(17,331	)
International Small Cap Equity		1,108,090		—		14,430,651		—
Global Listed Infrastructure		1,227,388		—		2,587,797		—
Emerging Markets Equity		53,296,073		—		3,885,729,167		—
Developing Markets Equity		979,596		990,943		15,712,682		—
Emerging Markets Equity Blend		511,443		—		2,311,061		(17,877	)
U.S. High Yield		—		—		6,169,490		(182,300	)
Capital Allocator Opportunistic Strategies		113,217		—		27,334,206		(35,157	)

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

(j) Expense Reductions—The Portfolios’ excess cash in demand deposit accounts may receive credits that 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, Distribution and Transfer Agency 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*	0.70	%
U.S. Strategic Equity*	0.70
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

* Effective November 19, 2010, the management fee has been reduced from an annual rate of 0.75% to 0.70%.

98  Annual Report

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*		0.75	%		1.05	%
U.S. Strategic Equity**		0.75			1.05
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

*	Effective November 19, 2010, the Investment Manager voluntarily agreed to lower the expense cap from 1.00% to 0.75% and 1.30% to 1.05% for Institutional Shares and Open Shares, respectively.
**	Effective November 19, 2010, the Investment Manager voluntarily agreed to lower the expense cap from 1.05% to 0.75% and 1.35% to 1.05% for Institutional Shares and Open Shares, respectively.

During the year ended December 31, 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	$	175,315	$	17,298
U.S. Strategic Equity		34,191		11,708
International Equity Select		115,209		138,358
International Small Cap Equity		35,720		14,945
Global Listed Infrastructure		41,263		7,554
Developing Markets Equity		125,702		111,671
Emerging Markets Equity Blend		400,494		56,679
U.S. High Yield		226,897		56,890
Capital Allocator Opportunistic Strategies		231,397		19,579

The Fund has entered into an administration agreement with State Street to provide certain administrative services to the Portfolios. 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 the $42,500 annual fee for the U.S. Equity Value and Emerging Markets Equity Blend Portfolios until each respective Portfolio’s net assets reach $25 million. During the year ended December 31, 2010, State Street waived $18,750 of its fees for U.S. Equity Value Portfolio and $7,813 for Emerging Markets Equity Blend Portfolio.

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.

BFDS is the Fund’s transfer and dividend disbursing agent. For its services, BFDS receives a monthly fee computed on the basis of the number of shareholder accounts it maintains subject to a minimum fee. BFDS has agreed to waive the monthly minimum fee for six months after a new Portfolio has commenced operations. During the year ended December 31, 2010, BFDS waived $11,921 of its fees for Global List Infrastructure Portfolio and $11,863 for Emerging Markets Equity Blend Portfolio.

4. Directors’ Compensation
Certain Directors of the Fund are officers of the Investment Manager. Each Director who is not an affiliated person of the Investment Manager or any of its affiliates is paid by 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: (1) an annual retainer of $80,000, (2) a per meeting in person regular or special meeting fee of $5,000 ($1,500 for telephonic participation), including Board, committee, subcommittee or other special meetings specifically authorized by the Board and held in connection with delegated Fund business, and (3) a telephone Audit Committee or special Board meeting fee of $1,500, with an additional annual fee for the Audit Committee Chairman, Lester Z. Lieberman, of $5,000. (Prior to July 1, 2010, the compensation consisted of: (1) an annual retainer

Annual Report  99

of $60,000, (2) $4,000 per meeting attended in person ($1,500 per meeting attended by telephone) and (3) $1,000 for each committee, subcommittee or other special meetings specifically authorized by the Board and held in connection with delegated Fund business.) The Independent Directors also are reimbursed for travel and other out-of-pocket expenses for attending Board and committee meetings. No additional compensation is provided in respect of committee meetings held in conjunction with a meeting of the Board. Compensation is divided among the Lazard Funds based on relative net assets. The Directors do not receive benefits from the Fund pursuant to any pension, retirement or similar arrangement.

5. Securities Transactions and Transactions with Affiliates
Purchases and sales of portfolio securities (excluding short-term investments) for the year ended December 31, 2010 were as follows:

Portfolio	Purchases		Sales
U.S. Equity Value	$	8,944,040	$	5,726,315
U.S. Strategic Equity		36,251,328		39,186,409
U.S. Mid Cap Equity		144,598,769		206,531,973
U.S. Small-Mid Cap Equity		145,955,284		140,155,915
International Equity		74,557,324		84,296,608
International Equity Select		4,737,247		6,569,897
International Strategic Equity		218,278,860		191,697,278
International Small Cap Equity		26,869,418		36,936,552
Global Listed Infrastructure		146,822,146		38,884,418
Emerging Markets Equity		6,824,765,719		3,291,852,503
Developing Markets Equity		167,672,176		84,924,657
Emerging Markets Equity Blend		67,971,474		10,404,756
U.S. High Yield		66,696,166		26,207,727
Capital Allocator Opportunistic Strategies		241,428,796		253,804,788

For the year ended December 31, 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 was payable at the higher of the Federal Funds rate or Overnight LIBOR rate plus 1.25% from January 1, 2010 to July 18, 2010 and, since July 19, 2010, the Federal Funds 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 year ended December 31, 2010, the Fund had borrowings under the Agreement as follows:

Portfolio	Average Daily Loan Balance*		Maximum Daily Loan Outstanding		Weighted Average Interest Rate			Number of Days Borrowings Were Outstanding
U.S. Strategic Equity	$	310,000	$	430,000		1.45	%		3
U.S. Mid Cap Equity		5,200,000		5,200,000		1.49			4
U.S. Small-Mid Cap Equity		6,775,000		7,200,000		1.49			4
International Equity		5,800,000		5,800,000		1.47			4
International Equity Select		191,944		430,000		1.71			36
International Small Cap Equity		1,091,944		4,100,000		1.44			18
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. Non-domestic securities 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 risks. 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.

100  Annual Report

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.

The following tables summarize the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 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 December 31, 2010
U.S. Equity Value Portfolio
Common Stocks	$	13,206,518	$	—	$	—	$	13,206,518
Short-Term Investment		—		134,017		—		134,017
Total	$	13,206,518	$	134,017	$	—	$	13,340,535
U.S. Strategic Equity Portfolio
Common Stocks	$	80,033,539	$	—	$	—	$	80,033,539
Preferred Stock		—		—		453,501		453,501
Short-Term Investment		—		774,560		—		774,560
Total	$	80,033,539	$	774,560	$	453,501	$	81,261,600
U.S. Mid Cap Equity Portfolio
Common Stocks	$	186,798,575	$	—	$	—	$	186,798,575
Preferred Stock		—		—		1,307,499		1,307,499
Short-Term Investment		—		8,869,893		—		8,869,893
Total	$	186,798,575	$	8,869,893	$	1,307,499	$	196,975,967
U.S. Small-Mid Cap Equity Portfolio
Common Stocks	$	255,902,030	$	—	$	—	$	255,902,030
Preferred Stock		—		—		452,901		452,901
Repurchase Agreement		—		3,916,000		—		3,916,000
Total	$	255,902,030	$	3,916,000	$	452,901	$	260,270,931
International Equity Portfolio
Common Stocks	$	152,362,779	$	—	$	—	$	152,362,779
Repurchase Agreement		—		3,649,000		—		3,649,000
Total	$	152,362,779	$	3,649,000	$	—	$	156,011,779

Annual Report  101

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)		Balance as of December 31, 2010
International Equity Select Portfolio
Common Stocks	$	6,525,260	$	—		$	—	$	6,525,260
Short-Term Investment		—		111,882			—		111,882
Total	$	6,525,260	$	111,882		$	—	$	6,637,142
International Strategic Equity Portfolio
Common Stocks	$	387,508,345	$	—		$	—	$	387,508,345
Preferred Stock		8,175,973		—			—		8,175,973
Rights		35,638		—			—		35,638
Short-Term Investment		—		5,173,198			—		5,173,198
Total	$	395,719,956	$	5,173,198		$	—	$	400,893,154
International Small Cap Equity Portfolio
Common Stocks	$	69,985,840	$	—		$	—	$	69,985,840
Preferred Stock		1,023,884		—			—		1,023,884
Short-Term Investment		—		994,326			—		994,326
Total	$	71,009,724	$	994,326		$	—	$	72,004,050
Global Listed Infrastructure Portfolio
Assets:
Common Stocks	$	116,393,103	$	—		$	—	$	116,393,103
Short-Term Investment		—		302,293			—		302,293
Other Financial Instruments*
Forward Currency Contracts		—		6,218			—		6,218
Total	$	116,393,103	$	308,511		$	—	$	116,701,614
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(2,521,850	)		—	$	(2,521,850	)
Emerging Markets Equity Portfolio
Common Stocks	$	17,364,454,970	$	146,273,364		$	—	$	17,510,728,334
Preferred Stocks		500,814,277		—			—		500,814,277
Short-Term Investment		—		647,514,542			—		647,514,542
Total	$	17,865,269,247	$	793,787,906		$	—	$	18,659,057,153
Developing Markets Equity Portfolio
Common Stocks	$	158,271,082	$	5,155,859		$	—	$	163,426,941
Preferred Stock		1,676,701		—			—		1,676,701
Short-Term Investment		—		6,704,173			—		6,704,173
Total	$	159,947,783	$	11,860,032		$	—	$	171,807,815
Emerging Markets Equity Blend Portfolio
Common Stocks	$	59,862,822	$	687,047		$	—	$	60,549,869
Short-Term Investment		—		3,366,982			—		3,366,982
Total	$	59,862,822	$	4,054,029		$	—	$	63,916,851
U.S. High Yield Portfolio
Corporate Bonds	$	—	$	131,923,810		$	—	$	131,923,810
Warrant		—		—			5		5
Short-Term Investment		—		4,274,003			—		4,274,003
Total	$	—	$	136,197,813		$	5	$	136,197,818

102  Annual Report

Description	Unadjusted Quoted Prices in Active Markets for Identical Investments (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservabl Inputs (Level 3)		Balance as of December 31, 2010
Capital Allocator Opportunistic Strategies Portfolio
Assets:
Exchange-Traded Funds	$	205,683,998	$	—		$	—	$	205,683,998
Closed-End Management Investment Companies		14,686,077		—			—		14,686,077
Purchased Option		2,877,000		—			—		2,877,000
Short-Term Investment		—		23,293,989			—		23,293,989
Other Financial Instruments*
Forward Currency Contracts		—		276,795			—		276,795
Swap Agreement		—		88,010			—		88,010
Total	$	223,247,075	$	23,658,794		$	—	$	246,905,869
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—		(85,721	)	$	—	$	(85,721	)

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

The common stocks included in Level 2 were valued based on reference to similar securities from the same issuers which were trading on active markets. The corporate bonds included in Level 2 were valued based on the last bid price for those securities. The forward currency contracts included in Level 2 were valued based on forward exchange rates as provided by quotation services. The swap agreement included in Level 2 was valued based on the value of the underlying assets in the equity basket adjusted for any accrued interest income or expense. The preferred stock included in Level 3 was valued by reference to comparable entities and evaluation of fundamental data relating to the issuer.

In connection with the periodic implementation of fair value pricing procedures with respect to foreign securities (see Note 2(a)), certain securities in the International Equity, International Equity Select, International Strategic Equity, International Small Cap Equity, Global Listed Infrastructure, Emerging Markets Equity and Developing Markets Equity Portfolios are transferred from Level 1 to Level 2 and revert to Level 1 when the fair value pricing procedure triggers are no longer met. Since the fair value pricing procedure triggers were not met at December 31, 2010, any securities which had been valued under these procedures as of December 31, 2009 which remained in the Portfolios as of December 31, 2010 were transferred to Level 1. There were no significant transfers into or out of Level 3 as of December 31, 2010.

For further information regarding security characteristics see Portfolios of Investments.

Annual Report  103

Following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value during the year ended December 31, 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 December 31, 2010		Net Change in Unrealized Appreciation (Depreciation) from Investments Still Held at December 31, 2010
U.S. Strategic Equity
Preferred Stock	$	—	$	—	$	—	$	—	$	453,501	$	—	$	—	$	—	$	453,501	$	—
U.S. Mid Cap Equity
Preferred Stock	$	—	$	—	$	—	$	—	$	1,307,499	$	—	$	—	$	—	$	1,307,499	$	—
U.S. Small-Mid Cap Equity
Preferred Stock	$	—	$	—	$	—	$	—	$	452,901	$	—	$	—	$	—	$	452,901	$	—
U.S. High Yield
Warrant	$	5	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	5	$	—

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.

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

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 year ended December 31, 2010, the cost of purchases and the proceeds from sales of forward currency contracts were $329,079,660 and $423,830,833, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2010:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	6,218
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	2,521,850

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2010 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	6,987
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(2,515,632	)

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Capital Allocator Opportunistic Strategies Portfolio
During the year ended December 31, 2010, the cost of purchases and the proceeds from sales of forward currency contracts were $16,807,037 and $16,998,111, respectively. During the year ended December 31, 2010, the Portfolio entered into a swap agreement.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2010:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	276,795
Equity Risk:
Gross unrealized appreciation on purchased option	$	446,299
Gross unrealized appreciation on swap agreement	$	88,010
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	85,721

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2010 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized loss on purchased options	$	(15,900	)
Net realized gain on swap agreements	$	1,320,810
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	191,066
Equity Risk:
Net change in unrealized appreciation on purchased option	$	446,299
Net change in unrealized appreciation on swap agreement	$	88,010

None of the other Portfolios in the Fund traded in derivatives during the year ended December 31, 2010.

See Notes 2(e) and 2(f) and the Portfolios of Investments for additional disclosures about derivative instruments.

11. Subsequent Events
Management has evaluated the possibility of subsequent events affecting the Fund’s financial statements and has determined that there are no such subsequent events that would require disclosure.

As of January 31, 2011, two additional Portfolios were added to the Fund (Lazard Emerging Markets Debt Portfolio and Lazard U.S. Municipal Portfolio).

Annual Report  105

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

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

We have audited the accompanying statements of assets and liabilities, including the portfolios of investments, of The Lazard Funds, Inc. (the “Fund”, comprised of Lazard U.S. Equity Value Portfolio, Lazard U.S. Strategic Equity Portfolio, Lazard U.S. Mid Cap Equity Portfolio, Lazard U.S. Small-Mid Cap Equity Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Small Cap Equity Portfolio, Lazard Global Listed Infrastructure Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio (commenced operations on May 28, 2010), Lazard U.S. High Yield Portfolio and Lazard Capital Allocator Opportunistic Strategies Portfolio) as of December 31, 2010 and the related statements of operations for the year or period then ended, the statements of changes in net assets for each of the two years in the period then ended, or the period from commencement of operations to December 31, 2010, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2010, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights as stated above, present fairly, in all material respects, the financial position of each of the respective portfolios constituting The Lazard Funds, Inc. as of December 31, 2010, the results of their operations for the year or period then ended, the changes in their net assets for each of the two years in the period then ended, or the period from commencement of operations to December 31, 2010, and the financial highlights for the periods presented in conformity with U.S. generally accepted accounting principles.

	ANCHIN, BLOCK & ANCHIN LLP
New York, New York
February 28, 2011

106   Annual Report

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

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During Past 5 Years and Other Directorships Held(2)
Non-Interested Directors:
Kenneth S. Davidson (65)(3)	Director (August 1995)	President, Davidson Capital Management Corporation, an investment manager; Partner, Aquiline Holdings LLC, an investment manager; Trustee, The Juilliard School; Chairman of the Board, Bridgehampton Chamber Music Festival; Trustee, American Friends of the National Gallery, London
Nancy A. Eckl (48)	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 (49 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 (70)	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 (63)	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(4):
Charles L. Carroll (50)	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 and Director 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, as of January 31, 2011, 22 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)	It is possible that Mr. Davidson could be deemed to be an affiliate of a company that has an indirect ownership interest in a broker-dealer that the Investment Manager may use to execute portfolio transactions for clients other than the Portfolios, and thus an “interested person” (as defined in the Act) of the Fund. However, due to the structure of Mr. Davidson’s relationship with the company and the remote nature of any deemed affiliation with the broker-dealer, Mr. Davidson is not identified as an “interested person” (as defined in the Act) of the Fund. Mr. Davidson participates in Fund Board meetings as if his status were that of an “interested person” (as defined in the Act).
(4)	Messrs. Bhutani and Carroll are “interested persons” (as defined in the Act) of the Fund because of their positions with the Investment Manager.
The Fund’s Statement of Additional Information contains further information about the Directors and is available without charge by calling 800-823-6300.

Annual Report  107

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)
Officers(3):
Nathan A. Paul (38)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (52)	Treasurer (May 2003)	Vice President of the Investment Manager
Brian D. Simon (48)	Chief Compliance Officer (January 2009) and Assistant Secretary (November 2002)	Managing Director (since February 2011) of the Investment Manager (previously, Director) and Chief Compliance Officer (since January 2009) of the Fund and the Investment Manager
Tamar Goldstein (35)	Assistant Secretary (February 2009)	Vice President (since March 2009) and previously Counsel (November 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 (36)	Assistant Treasurer (December 2004)	Vice President (since February 2011, previously, 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.

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The Lazard Funds, Inc. Other Information (unaudited)

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

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

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

Board Consideration of Management Agreements
At the meeting of the Fund’s Board held on November 17-18, 2010, the Board considered the approval, for an additional annual period, of the Management Agreement between the Fund, on behalf of the Portfolios, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided
Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services that the Investment Manager provides the Fund, including a discussion of the Investment Manager and its clients (of which the Lazard Funds complex of 20 active funds comprises approximately $20.3 billion of the nearly $130 billion of total assets under the management of the Investment Manager and its global affiliates as of September 30, 2010). The representatives of the Investment Manager noted that the Investment Manager believes that the Fund continues to benefit significantly from the infrastructure and services provided by the Investment Manager’s global investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels. The Directors also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience. The representatives of the Investment Manager reviewed the Fund’s distribution channels, the relationships with various intermediaries, marketing activities on behalf of the Portfolios over the past year and Portfolio asset flows and the growth or decline in asset levels.

The Directors considered the various services provided by the Investment Manager including the Investment Manager’s research and portfolio management capabilities and 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 infrastructure and agreed that the Fund benefits from the services and infrastructure provided by the Investment Manager. The Directors accepted management’s assertion that such services and infrastructure are greater than those typically provided to a $20.3 billion fund complex not managed by a large, global firm such as the Investment Manager.

Comparative Management Fee, Expense Ratio and Performance Information

The Directors reviewed comparative management fee, expense ratio and performance (through September 30, 2010) information prepared by Lipper, noting the limitations of certain Lipper comparison groups (each, a “Group”). Lipper’s materials stated that Lipper’s reports are specifically designed to provide boards of directors the necessary fee, expense and investment performance information to help fulfill their advisory contract renewal responsibilities under Section 15(c) of the Act.

Management Fees and Expense Ratios. The Directors discussed the management fees and expense ratios for each Portfolio. They noted the methodology and assumptions used by Lipper, including that management fee comparisons include administrative fees (which, for the Portfolios, are paid to the Fund’s third party administrator that is not affiliated with the Investment Manager) and that the quintile rankings used therein (referred to below) did not include fixed dollar amounts paid to administrators. It was noted that such fixed

Annual Report  109

fees were not material relative to the Portfolios’ management fees, but could affect management fee quintile rankings if included in Lipper’s analysis.

In reviewing Lipper’s analyses, it was noted that, for at least one share class of each Portfolio, contractual management fees are in the first or second quintiles (lower than median), except for the Global Listed Infrastructure, Emerging Markets Equity and Capital Allocator Opportunistic Strategies Portfolios (for which at least one share class of each Portfolio, the contractual management fee was approximately equal to the median), and that, for at least one share class of each Portfolio, expense ratios were within the range of those of the funds in the relevant Group. For Global Listed Infrastructure Portfolio and Capital Allocator Opportunistic Strategies Portfolio, it was noted that the relevant Group and/or Universe may not provide the most appropriate comparison given the specialty nature of the Portfolios. The Directors considered that the Investment Manager continues to voluntarily enter into fee waiver and expense reimbursement agreements for all of the Portfolios and that for certain of the Portfolios the Investment Manager was waiving management fees and/or reimbursing expenses. For the U.S. Equity Value and U.S. Strategic Equity Portfolios, the Investment Manager proposed, and the Directors approved, a reduction in the contractual management fee which would have ranked the fees below the respective Group medians.

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

Performance. The Directors noted that, as discussed below, the Portfolios’ investment returns were variously above, at or below the median ranges of the relevant Group and/or Lipper universe (“Universe”) over measurement periods up to ten years through September 30, 2010.

The performance of U.S. Equity Value Portfolio, U.S. Strategic Equity Portfolio, U.S. Mid Cap Equity Portfolio, International Equity Portfolio and International Equity Select Portfolio, Institutional Class, was better than or near the Group median for all or, nearly all, periods; both classes of the U.S. Small-Mid Cap Equity Portfolio, International Strategic Equity Portfolio and Developing Markets Equity Portfolio were in the first or second quintile of the Group and Universe for all, or nearly all, periods; International Small Cap Equity Portfolio, both classes, was third of three funds in the Group for most periods (although the 10 year performance was in the second quintile in the Universe); both classes of the Global Listed Infrastructure Portfolio were at or above the median of the Group and Universe for the periods shown; Emerging Markets Equity Portfolio was above the Open Class Group median and, for both classes, the Universe medians for the periods shown; both classes of the Emerging Markets Equity Blend Portfolio were competitive with the Group and Universe medians (although the Portfolio had only approximately four months of performance); both classes of High Yield Portfolio were below the Group and Universe medians for all periods; and Capital Allocator Opportunistic Strategies Portfolio, Institutional Class, was competitive with the Universe median for the periods shown.

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

Investment Manager Profitability and Economies of Scale
The Directors reviewed information prepared by the Investment Manager for each Portfolio concerning the estimated expenses incurred, and profits realized, by the Investment Manager and its affiliates resulting from the Management Agreement, including the projected dollar amount of expenses allocated and profit received by the Investment Manager for the calendar year ending December 31, 2010 (assuming that asset levels were unchanged from September 30, 2010 to December 31, 2010) and for calendar year 2011 assuming that the average net assets used in the 2010 projection increased by 20%, and the method used to determine such expenses and profits. The representatives of the Invest-

110  Annual Report

ment Manager stated that neither the Investment Manager nor its affiliates receive any significant indirect benefits from the Investment Manager acting as investment adviser to the Portfolios. The Investment Manager’s representatives stated that the broker-dealer that is treated as an affiliate of the Investment Manager did not effect trades for the Portfolios from January 1, 2010 through September 30, 2010 and the Investment Manager did not benefit from money flow (float) in connection with transactions in the Portfolios’ shares. The Investment Manager’s representatives reviewed with the Board information provided on the Investment Manager’s brokerage practices and the Portfolios’ brokerage allocation, commission payments and soft dollar commissions and benefits. The representatives of the Investment Manager reminded the Board that the Investment Manager is continuing to support distribution relationships through direct payments from its or its affiliates’ own resources to third parties in connection with distribution and shareholder servicing and/or administrative and recordkeeping services, and noted that the Fund does not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Portfolios’ Open Shares.

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

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

• The Board concluded that the nature, extent and quality of the services provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research services and other services and infrastructure (as discussed above) associated with a nearly $130 billion global asset management business.

• The Board was generally satisfied with the overall performance of the Portfolios, but would continue to monitor performance of the Portfolios with performance that was not generally above or competitive with Group or Universe medians.

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

• The Board recognized that economies of scale may be realized as the assets of the Portfolios increase and determined that they would continue to consider potential material economies of scale.

The Board considered these conclusions and determinations in their totality and, without any one factor being dispositive, determined that approval of the Management Agreement for the Fund, on behalf of the Portfolios (subject to receipt of the Supplemental Presentation), was in the best interests of the Portfolio and its shareholders.

Annual Report  111

On December 14, 2010, the Board received a satisfactory Supplemental Presentation and took no further action in respect of its previous approval of the Management Agreement.

U.S. Municipal Portfolio and Emerging Markets Debt Portfolio
At the meeting of the Fund’s Board held on November 17-18, 2010, the Board considered the approval of the new Management Agreement between the Fund, on behalf of Lazard U.S. Municipal Portfolio and Lazard Emerging Markets Debt Portfolio (the “New Portfolios”), and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided
Representatives of the Investment Manager discussed with the Board the Investment Manager’s written presentation provided in advance of the meeting addressing, among other matters, the nature, extent and quality of services that the Investment Manager intends to provide the New Portfolios, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds complex of 20 active funds comprises approximately $20.3 billion of the nearly $130 billion of total assets under the management of the Investment Manager and its global affiliates as of September 30, 2010). The representatives of the Investment Manager noted that the Investment Manager believes that the New Portfolios will benefit significantly from the infrastructure and services provided by the Investment Manager’s global investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels. The Directors also considered information provided by the Investment Manager regarding its personnel, resources, financial condition and experience.

The Directors considered the various services to be provided by the Investment Manager including the Investment Manager’s research and portfolio management capabilities and 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 infrastructure and agreed that the New Portfolios were expected to benefit from the services and infrastructure provided by the Investment Manager. The Directors accepted management’s assertion that such services and infrastructure would be greater than those typically provided to a $20.3 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 New Portfolio and the comparisons provided by Lipper, which compared contractual management fees and projected expense ratios for the New Portfolios to comparison groups chosen by Lipper, and the Directors noted the methodology and assumptions used in the comparisons. They noted that Lipper’s management fee comparisons include administrative fees (which, for the New Portfolios, are paid to the Fund’s third party administrator that is not affiliated with the Investment Manager) and the quintile rankings used therein (referred to below) did not include fixed dollar amounts paid to administrators. It was noted that such fixed fees were not material relative to the New Portfolios’ management fees, but could affect their management fee quintile rankings if included in Lipper’s analysis. For the Emerging Markets Debt Portfolio, the management fee (for Open Shares and Institutional Shares) was slightly higher than the Group median, and for the U.S. Municipal Portfolio, the management fee (for Open Shares and Institutional Shares) was the lowest in the Group. The projected expense ratio for each New Portfolio was within the ranges of those of the funds in the Groups. Representatives of the Investment Manager discussed differences between the Emerging Markets Debt Portfolio’s strategy and the funds in its comparison Group.

For the U.S. Municipal Portfolio, the Directors also considered management fees paid to the Investment Manager by Similar Accounts. The Directors discussed the fees to be paid to the Investment Manager compared to the fees paid to the Investment Manager by Similar Accounts. Representatives of the Investment Manager discussed the nature of the Similar Accounts and the differences, from the Investment Manager’s perspective, in services to the different types of Similar Accounts as compared to the services to be provided to the U.S. Municipal Portfolio. The Directors considered the relevance of the fee information provided for Similar Accounts managed by the Investment Manager, in light of the differences in services provided, to evaluate the

112  Annual Report

appropriateness and reasonableness of the U.S. Municipal Portfolio’s management fees. There were no Similar Accounts for the Emerging Markets Debt Portfolio.

Performance. Each New Portfolio’s proposed portfolio managers gave a presentation on the strategies to be employed for the New Portfolio and the New Portfolio’s portfolio management team, including professional biographies. For the U.S. Municipal Portfolio, the Directors considered the performance of a composite of accounts managed by the portfolio managers in a similar strategy to those contemplated for the U.S. Municipal Portfolio. There was no composite performance available for the Emerging Markets Debt Portfolio.

Investment Manager Profitability and Economies of Scale
Representatives of the Investment Manager noted discussions regarding considerations of profitability and economies of scale in respect of the Fund’s existing Portfolios and noted that because the New Portfolios are newly formed, have not commenced operations and the eventual aggregate amount of each New Portfolio’s assets was uncertain, the Investment Manager was not able to provide the Directors with specific information concerning the cost of services to be provided to the New Portfolios and the expected profits to be realized by the Investment Manager and its affiliates from their relationships with the New Portfolios and the extent to which economies of scale would be realized as the New Portfolios grow and whether fee levels would reflect such economies of scale, if any. The Directors determined to revisit this issue no later than when it next reviewed the investment management fee in connection with renewal of the Management Agreements. Neither the Investment Manager nor its affiliates was expected to receive any significant indirect benefits from the Investment Manager acting as investment adviser to the New Portfolios. 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 each of the New Portfolios. 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 and infrastructure (as discussed above) associated with a nearly $130 billion global asset management business.

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

• The Board concluded that each 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 a New Portfolio increase. The Board determined they would seek to have the Investment Manager share any material economies of scale with the New Portfolios.

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

Annual Report  113

The Lazard Funds, Inc. Tax Information Year Ended December 31, 2010 (unaudited)

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2010:

Of the dividends paid by the Portfolios, the corresponding percentage represents the amount of each dividend which will be subject to a maximum tax rate of 15%, as provided by the Jobs and Growth Tax Relief Reconciliation Act of 2003. The same information will be reported in conjunction with your 2010 Form 1099-DIV.

Portfolio	Percentage
U.S. Equity Value		100.00	%
U.S. Strategic Equity		100.00
U.S. Mid Cap Equity		100.00
U.S. Small-Mid Cap Equity		100.00
International Equity		100.00
International Equity Select		100.00
International Strategic Equity		100.00
International Small Cap Equity		100.00
Global Listed Infrastructure		92.74
Emerging Markets Equity		85.62
Developing Markets Equity		4.74
Emerging Markets Equity Blend		75.71
U.S. High Yield		—
Capital Allocator Opportunistic Strategies		42.23

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

Portfolio	Percentage
U.S. Equity Value		100.00	%
U.S. Strategic Equity		100.00
U.S. Mid Cap Equity		100.00
U.S. Small-Mid Cap Equity		100.00
International Equity		—
International Equity Select		—
International Strategic Equity		—
International Small Cap Equity		—
Global Listed Infrastructure		9.74
Emerging Markets Equity		—
Developing Markets Equity		—
Emerging Markets Equity Blend		—
U.S. High Yield		—
Capital Allocator Opportunistic Strategies		28.20

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

Portfolio	Amount
U.S. Equity Value	$	—
U.S. Strategic Equity		—
U.S. Mid Cap Equity		—
U.S. Small-Mid Cap Equity		—
International Equity		—
International Equity Select		—
International Strategic Equity		—
International Small Cap Equity		—
Global Listed Infrastructure		—
Emerging Markets Equity		—
Developing Markets Equity		12,273,488
Emerging Markets Equity Blend		82,017
U.S. High Yield		—
Capital Allocator Opportunistic Strategies		—

114  Annual Report

NOTES

NOTES

NOTES

NOTES

NOTES

NOTES

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

© 2011 Lazard Asset Management LLC

12/10 LZDPS013

Lazard Funds

ITEM 2. CODE OF ETHICS.

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

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

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

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $509,100 in 2009 and $593,500 in 2010.

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

(c) Tax Fees. The aggregate fees billed in the Reporting Periods by the Auditor to the Registrant for professional services rendered by the Auditor for tax compliance, tax advice and tax planning (“Tax Services”) were $99,100 in 2009 and $113,300 in 2010. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, and (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

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

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

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

(e) Audit Committee Pre-Approval Policies and Procedures. The Registrant’s Audit Committee pre-approves the Auditor’s engagements for audit and non-audit services to the Registrant and, as required, non-audit services to Service Affiliates on a case-by-case basis. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor’s independence. There were no services provided by the Auditor to the Registrant or Service Affiliates that were approved pursuant to (c)(7)(i)(C) of Rule 2-01 of Regulation S-X during the Reporting Periods.

(f) None.

(g) Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant for the Reporting Periods were $99,100 in 2009 and $113,300 in 2010. There were no fees billed in the Reporting Periods by the Auditor to Service Affiliates.

(h) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

          Not applicable.

ITEM 6. INVESTMENTS

          Not applicable.

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

          Not applicable.

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

          Not applicable.

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

          Not applicable.

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

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

ITEM 11. CONTROLS AND PROCEDURES.

(a)       The Registrant’s principal executive and principal financial officers have concluded, based on their evaluation of the Registrant’s disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant’s disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is

recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant’s management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)       There were no changes to the Registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

ITEM 12. EXHIBITS.

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

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

(a)(3)     Not applicable.

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

SIGNATURES

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

The Lazard Funds, Inc.

By	/s/ Charles L. Carroll
	Charles L. Carroll
	Chief Executive Officer
Date	March 8, 2011

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	March 8, 2011
By	/s/ Stephen St. Clair
	Stephen St. Clair
	Chief Financial Officer
Date	March 8, 2011