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

FORM N-CSR/A

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:      12/31/11

ITEM 1. REPORTS TO STOCKHOLDERS.

December 31, 2011

Lazard Funds Annual Report

Lazard Funds

U.S. Equity	Emerging Markets
Lazard U.S. Equity Value Portfolio	Lazard Emerging Markets Equity Portfolio
Lazard U.S. Strategic Equity Portfolio	Lazard Developing Markets Equity Portfolio
Lazard U.S. Mid Cap Equity Portfolio	Lazard Emerging Markets Equity Blend Portfolio
Lazard U.S. Small-Mid Cap Equity Portfolio	Lazard Emerging Markets Multi-Strategy Portfolio
	Lazard Emerging Markets Debt Portfolio
Global Equity
Lazard Global Listed Infrastructure Portfolio	Real Estate
	Lazard U.S. Realty Income Portfolio
International Equity	Lazard U.S. Realty Equity Portfolio
Lazard International Equity Portfolio	Lazard International Realty Equity Portfolio
Lazard International Equity Select Portfolio
Lazard International Strategic Equity Portfolio	U.S. Fixed Income
Lazard International Small Cap Equity Portfolio	Lazard U.S. High Yield Portfolio
	Lazard U.S. Municipal Portfolio
	Tactical Asset Allocation
	Lazard Capital Allocator Opportunistic Strategies Portfolio

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
15	Performance Overviews
35	Information About Your Portfolio’s Expenses
39	Portfolio Holdings Presented by Sector
41	Portfolio Holdings Presented by Region and Credit Rating
42	Portfolios of Investments
42	Lazard U.S. Equity Value Portfolio
44	Lazard U.S. Strategic Equity Portfolio
46	Lazard U.S. Mid Cap Equity Portfolio
48	Lazard U.S. Small-Mid Cap Equity Portfolio
50	Lazard Global Listed Infrastructure Portfolio
52	Lazard International Equity Portfolio
54	Lazard International Equity Select Portfolio
56	Lazard International Strategic Equity Portfolio
58	Lazard International Small Cap Equity Portfolio
60	Lazard Emerging Markets Equity Portfolio
62	Lazard Developing Markets Equity Portfolio
64	Lazard Emerging Markets Equity Blend Portfolio
66	Lazard Emerging Markets Multi-Strategy Portfolio
75	Lazard Emerging Markets Debt Portfolio
81	Lazard U.S. Realty Income Portfolio
83	Lazard U.S. Realty Equity Portfolio
84	Lazard International Realty Equity Portfolio
86	Lazard U.S. High Yield Portfolio
91	Lazard U.S. Municipal Portfolio
95	Lazard Capital Allocator Opportunistic Strategies Portfolio
97	Notes to Portfolios of Investments
102	Statements of Assets and Liabilities
108	Statements of Operations
114	Statements of Changes in Net Assets
122	Financial Highlights
142	Notes to Financial Statements
159	Report of Independent Registered Public Accounting Firm
160	Board of Directors and Officers Information
162	Other Information
169	Tax Information

Please consider a Portfolio’s investment objective, 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 and summary prospectus contain investment objectives, risks, charges, expenses and other information about Portfolios of the Fund, which are not detailed in this report.

Distributed by Lazard Asset Management Securities LLC.

Annual Report  1

The Lazard Funds, Inc. A Message from Lazard

Dear Shareholder,

During 2011, global equities were volatile amid political and macroeconomic uncertainty, and the majority of markets ended the year in negative territory. Two major drivers of market performance were the ongoing sovereign debt crisis in Europe and Standard & Poor’s downgrade of the U.S. long-term credit rating. Toward year end, stocks were boosted by signs of progress toward resolving Europe’s debt crisis and improving U.S. economic data.

Corporate earnings remained a bright spot in an uncertain market environment, as companies worldwide continued to reduce costs and capital expenditures in pursuit of strong profitability and cash generation. Globally, U.S. stocks led other markets. Developed market equities outperformed their emerging market counterparts, which lagged due to concerns about global growth. China’s economy performed better than many had expected, fueling optimism that the country will be able to manage a soft landing.

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

We believe that financial markets offer attractive opportunities, and that we possess and continually 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, achieve your financial goals.

We sincerely appreciate your continued confidence in our management capabilities, and feel privileged 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. markets posted relatively flat returns in 2011, though that veiled high volatility, which was largely driven by macroeconomic events. In particular, the sovereign debt crisis in the Eurozone, concerns about inflation in the emerging markets and a hard landing in China, and political disputes by U.S. congressional leaders over the nation’s debt ceiling and the country’s subsequent long-term credit downgrade affected the markets. However, corporate earnings continued to be a bright spot in the uncertain market environment, as companies have been actively reducing costs and capital expenditures in efforts to ensure strong profitability and cash generation, even in a lackluster economic environment. During the fourth quarter of 2011, the markets rose amid greater optimism for a resolution to the debt crisis. Although the outcome of the European Union summit lacked full details, it appeared to be a step toward greater economic integration, which in our view is vital for a comprehensive solution to the sovereign debt crisis. Additionally, investors were heartened as U.S. economic data strengthened over the last several weeks of the year. Claims for new unemployment benefits fell, and both industrial production and consumer spending increased. Sector leadership for the year was led by the traditionally more defensive sectors.

International Equities

International equity markets fell in 2011 as macroeconomic concerns overwhelmed resilient corporate profits. The largest issue was in Europe, where in July the sovereign debt crisis spread inexorably from the smaller periphery countries, such as Greece and Ireland, to the heart of Europe – Spain and Italy. Both countries now have new governments implementing more aggressive reforms, and the Eurozone is moving toward much more centralized fiscal control, while setting up substantial rescue funds. The European Central Bank has provided virtually unlimited three-year liquidity to banks, and has bought substantial quantities of Italian and Spanish debt. However, these actions will likely still fall short of an ultimate solution, and with banks pulling in lending the economic environment appears to be deteriorating. After a summer scare around the Standard & Poor’s downgrade of U.S. long-term sovereign debt, more recent economic indicators in the United States have improved as corporations continue to invest in capital expenditures and consumers start to reduce savings rates again. However, it remains to be seen whether this is sustainable, as the United States has yet to take any material steps toward addressing its own fiscal deficit. In China, the government’s measures to cool the economy, particularly in the housing market, started to make an impact in the second half of the year, and initial signs of easing policy are calming fears of a hard landing. Meanwhile, Japan has recovered remarkably from the severe earthquake and tsunami in March, although it remains exposed to risk from global trade, its strong currency, and ultimately its own debt issues.

In this environment, traditionally cyclical and risk assets performed poorly. Financials, materials, capital goods, technology, and automotive stocks all fell significantly, as did smaller-capitalization and emerging market stocks. The latter was driven in part by weakening currencies as money flowed out of the emerging markets. The better-performing stocks were in the traditionally more defensive sectors, such as health care, consumer staples, and telecom services. The large integrated energy stocks also performed well, but stocks in the utilities sector fell sharply as weak energy demand and harsh government intervention hurt corporate profits.

Emerging Markets Equity and Debt

Faced with concerns over the servicing of European debt and Chinese growth, and thus, overall global economic activity, shares in emerging markets declined considerably in 2011. Emerging market equities underperformed industrialized markets despite the fact that the principal sources of concern emanated from those industrialized nations. There was also a major budget dispute in the U.S. Congress in July, which further bolstered market anxiety. The Morgan Stanley Capital International (MSCI^®) Emerging Markets Index (the EM Index) decreased by more than 18% in 2011, as shares in Asia performed less poorly than those in Latin America, or in Eastern Europe, the Middle East, and Asia. There were significant declines during the year, not just in the capital markets, but also in the values of emerging market currencies and commodities.

South Korean shares, particularly automobile and electronic stocks, appeared to benefit from competitive opportunities following the Japanese earthquake. Indonesian and Philippine equities continued to record solid returns as impressive economic growth persisted. Malaysian stocks also rallied, helped by impressive economic performance. Slowing growth, accompanied by stubbornly high inflation, resulted in the underperformance of Indian equities and the rupee.

Annual Report  3

Large Latin American markets had weak performance over the year. Colombian shares were the best performers, helped by strong copper and agricultural commodity prices. Stocks in Mexico started the year poorly, but recovered impressively in the fourth quarter. Argentinean shares were the weakest, hurt by concerns over corporate and political issues.

Mixed performance was registered across most of Eastern Europe, the Middle East, and Africa. Share prices outperformed in South Africa aided by robust commodity prices. The Turkish market was weak, undermined by general risk aversion and the central bank’s application of unorthodox monetary policy. Markets also fell in Hungary and Poland, as both were associated with the challenges facing the European Union, and the former attempted to balance its budget. Egyptian shares fell significantly as a result of the historical political changes that took place in the country during the period.

Traditionally defensive sectors, such as consumer staples, telecom services, consumer discretionary, and utilities, outperformed in 2011. Cyclical sectors, such as industrials and materials, were the weakest performers.

In emerging market debt, prices rallied toward the end of the year after a sell-off in September, but 2011 was a rather moribund year for the asset class. Due to high levels of economic stress that persisted throughout the reporting period, investors were naturally reticent to put money to work, and this manifested itself in low valuations and thinly-traded markets.

Since the market crash of 2007/2008, global growth has rebounded for three straight years. A large part of the recovery in growth has been a result of extraordinary fiscal/monetary stimulus in large developed markets and key emerging markets. That stimulus allowed for cheaper borrowing, which then triggered large increases in global manufacturing in order to re-stock very thin supply chains. The cumulative effect of these positive moves has been increased consumer confidence and higher market prices. However, after three years of economic recovery, most of the “one time” and “low base comparison” effects have subsided. Global economies are now straining under high levels of sovereign debt, made even worse by the movement of personal, corporate, and banking liabilities onto the sovereign balance sheets.

External debt sovereign spreads widened incrementally throughout year, resulting in calendar-year spread widening of 130 basis points (bps) to reach 404 bps over U.S. Treasuries. It should be noted that with the exception of 2008, external debt spreads have not ended the year at such levels since 2002. Consistent with much of the year, external debt spread widening was more than offset by further rallies in U.S. Treasury yields.

Local emerging market debt markets ended the year in slightly positive territory. However, returns were negatively affected by double-digit losses in the foreign exchange component, which were almost offset by local bond carry and additional spread compression by year end.

Real Estate Securities

Real estate investors’ view of 2011 largely depended on where they were invested geographically. In the United States, Real Estate Investment Trusts (REITs) outperformed the broader equities market for the third consecutive year (and nine of the last 11 years), returning more than 8% versus 2% for U.S. stocks in 2011. Resurgent public capital markets, improved fundamentals, and investors’ quest for yield, drove gains across most property sectors. Two of the best-performing sectors, self-storage and multi-family housing, continued to benefit from the decline in homeownership, while regional malls and industrial REITs also delivered strong performance relative to the broader REIT index. Not all sectors were immune from heightened volatility and concerns over economic slowdown stemming from the European debt crisis. Economically-sensitive lodging and service REITs posted negative returns. Strip shopping center and office REITs were also notable underperformers.

Internationally, real estate stocks retreated mainly from regionally-specific issues, such as concerns about China’s ability to navigate decelerating (but still strong) growth coupled with rising inflation rates. Also negatively impacting real estate stocks were global fears of Europe’s financial solvency and slowing growth rates. As a result, international real estate stock returns were down in 2011. While performance of global real estate is tied to local fundamentals and growth over the long term, broad themes played a role in 2011, as investors sought the relative safety of developed or energy-related countries, such as Canada, the United States, and Australia.

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High Yield Fixed Income

The high yield sector produced strong positive returns for the first half of 2011 but gave almost all of it back in the third quarter as government support programs lapsed and European risks rose. Fourth quarter returns were outsized, resulting in a mid-single-digit market return for the year. Energy and defensive sectors such as cable and utilities outperformed. The CCC-quality sector, which had been the U.S. high yield market leader since December of 2008, finished the year with a negative return of –1.3%.

High-yield market spreads widened by approximately 180 bps over the year, including an approximate 125 bps fall in Treasury yields. BB spreads widened by about 100 bps, while CCC spreads widened by 405 bps. The Merrill Lynch High Yield Master II^® Index ended the quarter at a spread of 723 bps over Treasuries. New high-yield bond issuance in the U.S. market was approximately $215 billion for the year, but slowed markedly in the final quarter. Mutual fund flows were volatile but positive over the year, and totaled about $12 billion. The Moody’s trailing twelve-month issuer default rate was 1.8% as of December 2011, down from 3.4% in December of 2010.

U.S. Municipal Fixed Income

Market performance in 2011 raised many questions, as the investment outcomes of many classes of securities diverged from consensus expectations. At the start of the year, the general consensus among fixed-income investors was that developed market government securities were expensive, and that sovereign interest rates would likely rise due to increased financing needs and inflationary commodity pressures. Non-U.S. developed market sovereign credit risk appeared to be contained, while U.S. municipal markets were under intense pressure due to fears of impending defaults across the country. During 2011, various bond yields fell markedly; non-U.S. developed sovereign credit spreads widened exponentially; commodity prices remained contained; and U.S. municipal credit spreads compressed. Ultimately, U.S. municipal securities were the top-performing high-grade sector for 2011, returning 10.7% (as measured by the broad-based Barclays Capital Municipal Bond^® Index), while 10-year U.S. Treasuries were up by 9.8%. Additionally, consensus assumptions regarding duration and curve positioning proved to be incorrect, as it was the longer end of the yield curve that drove much of the results.

Another key driver of performance during the year was the strong technical backdrop, as supply could not keep pace with demand. Issuance was relatively low for the year, approximating $295 billion, down 32% from 2010. Modest economic growth, global sovereign risk, and fiscal discipline have helped to attract investors to the municipal sector as an opportunity for additional yield and relative value compared to Treasuries. We believe this reflects a level of comfort among fixed-income investors with the credit risk profile of municipals in spite of negative headlines and uncertain quality ratings.

Lazard U.S. Equity Value Portfolio

For the year ended December 31, 2011, the Lazard U.S. Equity Value Portfolio’s Institutional Shares posted a total return of –1.47%, while Open Shares posted a total return of –1.77%, as compared with the 0.39% return for the Russell 1000^® Value Index.

Stock selection in the consumer discretionary sector contributed to performance. Shares of cable and media company Comcast rose as the company continued to execute well. Stock selection and an overweight position in the consumer staples sector also helped returns. Shares of retailer Wal-Mart increased as the company improved underlying sales growth in both its U.S. and international units, and also kept expenses growing slower than sales. Wal-Mart also increased its dividend and repurchased a significant amount of shares.

In contrast, an underweight exposure to utilities detracted from performance, as the sector was the best performer in the index this year. Many investors moved toward utilities looking for yield, but we found the valuations of many of the companies unappealing. Stock selection in the energy sector also hurt returns. Shares of coal miner Alpha Natural Resources declined as the company, along with a number of other coal producers, reported lackluster earnings, higher than expected costs, and lower guidance.

Lazard U.S. Strategic Equity Portfolio

For the year ended December 31, 2011, the Lazard U.S. Strategic Equity Portfolio’s Institutional Shares posted a total return of 1.65%, while Open Shares posted a total return of 1.42%, as compared with the 2.11% return for the S&P 500^® Index.

Annual Report  5

Stock selection and an underweight position in the financials sector contributed to performance. Shares of NYSE Euronext, one of the world’s largest equities and derivatives exchanges, climbed on the news that it agreed to be acquired by German exchange operator Deutsche Boerse. We exited the position on this activity. Stock selection in the consumer discretionary sector also helped the Portfolio. Shares of cable and media company Comcast rose as the company continued to execute well.

In contrast, stock selection in the energy sector detracted from performance. Shares of Consol Energy fell, along with the broader coal industry, as a result of higher input costs as well as fears of global growth slowing. Stock selection in the consumer staples sector also hurt returns. Shares of Molson Coors Brewing declined as beer volumes have been weaker than expected. Additionally, the company faced continued uncertainty about its capital deployment.

Lazard U.S. Mid Cap Equity Portfolio

For the year ended December 31, 2011, the Lazard U.S. Mid Cap Equity Portfolio’s Institutional Shares posted a total return of –5.58%, while Open Shares posted a total return of –5.84%, as compared with the –1.55% return for the Russell Midcap^® Index.

Stock selection in the information technology sector contributed to performance. Shares of Motorola Mobility Holdings, the spin-off of Motorola’s wireless and cable business, climbed after Google forged a deal to buy the company for $12.5 billion. We subsequently sold this position from the Portfolio. A lack of exposure to telecom services also helped returns, as the sector was the worst performer in the index during the year.

In contrast, stock selection in the health care sector detracted from performance. Shares of pharmaceutical company Warner Chilcott, a creator of branded prescription pharmaceutical products, declined on investor concerns over the firm’s levered balance sheet, an FDA review of its osteoporosis drugs, and the risk of generic competition for an oral acne drug. Stock selection in the materials sector also hurt returns. Shares of salt maker Compass Minerals declined on macroeconomic and weather-related concerns.

Lazard U.S. Small-Mid Cap Equity Portfolio

For the year ended December 31, 2011, the Lazard U.S. Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of –9.83%, while Open Shares posted a total return of –10.09%, as compared with the –2.51% return for the Russell 2500^® Index.

For the year 2011, stock selection in the health care, information technology, and consumer discretionary sectors detracted from performance, while stock selection in the financials sector helped returns.

Performance in the health care sector was hurt by Warner Chilcott. Shares of the company fell during the year on slightly disappointing revenues and earnings. HealthSouth, a provider of inpatient rehabilitative health care services, declined on news of a proposal to cut Medicare spending, which was expected to negatively impact its revenues, as the rule would lead to considerably fewer patients the company could bill under Medicare. The Portfolio exited both of these positions during the year.

In the information technology sector, Quest Software, a provider of application and information availability software solutions, underperformed following two weak quarterly earnings announcements and lowered full-year guidance. Entropic Communications, a designer and developer of semiconductors, hurt returns based on a higher level of competition in the semiconductor industry and analyst downgrades. The position in Entropic Communications was sold during the year.

Modine Manufacturing, a manufacturer of heat-transfer and heat-storage technology products, hurt performance in the consumer discretionary sector. Investors were concerned that demand for the company’s products would be affected by the potential economic slowdown. WMS Industries, a designer and manufacturer of gaming machines and video lottery terminals, also declined for the year after a disappointing earnings announcement caused it to lower its guidance. The Portfolio’s holdings in WMS Industries were sold during the year.

NYSE Euronext, operator of an international stock exchange, outperformed in the financials sector. The company was an acquisition target, pursued by Deutsche Boerse, a German exchange operator, and by two U.S. exchange operators. The bids for NYSE Euronext caused its share price to rise significantly over the period. The position was sold, as it had fulfilled our valuation expectations. Arch Capital Group, a provider of reinsurance and insurance products, also out-

6  Annual Report

performed based on an improved outlook for insurance premiums.

Lazard Global Listed Infrastructure Portfolio

For the year ended December 31, 2011, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of –1.55%, while Open Shares posted a total return of –1.95%, as compared with the –0.74% return for the UBS Global 50/50 Infrastructure & Utilities^® Index and –5.54% return for the MSCI World^® Index.

Australian stocks were among the top contributors to performance during the year. Prior to the global financial crisis, many listed infrastructure stocks in Australia appeared expensive; however, the sharp sell-off in 2009 created a buying opportunity. Over the next two years, corporate restructuring, reassessment of dividend policies and capital injections were undertaken and, importantly, underlying asset fundamentals remained strong. Thus, as fears of a liquidity crisis abated, these stocks were rewarded. This shift coupled with corporate transactions (mainly in the toll road sector), resulted in Australia being the top contributor to 2011 returns, at a country level.

Spark Infrastructure was the biggest contributor to returns over the year due to favorable resolution of regulatory matters and also benefited, along with certain other Australian regulated utilities, such as DUET, as fears were allayed by the Australian Energy Regulator regarding a general increase in regulatory risk. DUET’s strong performance was further compounded by its corporate structure simplification program and equity issuance.

European holdings dominated the top detractors due to general market weakness and stock-specific factors. In 2011, we reduced the Portfolio’s position in European stocks to allow for risks associated with the sovereign debt crisis and the potential for a breakdown in the euro.

Fraport underperformed despite strong traffic growth and higher expected profitability, as the market believed that a downturn in freight at Frankfurt in 2011 was a leading indicator for passenger traffic in 2012. Similarly, Flughafen Wien underperformed, despite expected growth in traffic for 2011, as its new management team wrote off € 74 million in the third quarter, which affected reported results.

Lazard International Equity Portfolio

For the year ended December 31, 2011, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of –7.17%, while Open Shares posted a total return of –7.42%, as compared with the –12.14% return of the MSCI Europe, Australasia, and Far East (EAFE^®) Index (the EAFE Index).

Stock selection was the main driver of performance, led by the financials and telecom services sectors. In the financials sector, life insurer AIA Group performed well on strong demand for its services, and we exited the position after the stock reached our estimate of fair value. Daito Trust also performed well despite Japan’s earthquake-related tragedies in March, as the company had little negative exposure and continued to execute well. In the telecom services sector, stock selection was led by Telstra, which performed well amid expectations of a beneficial deal with the Australian government regarding the National Broadband Network.

In contrast, the Portfolio was negatively impacted by its high exposure to the information technology sector as it under-performed the broader market. However, its negative impact was more than offset by positive stock selection in the sector. Exposure to emerging markets detracted from relative returns as the Portfolio’s positions underperformed the broader market.

Lazard International Equity Select Portfolio

For the year ended December 31, 2011, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of –7.14%, while Open Shares posted a total return of –7.41%, as compared with the –13.71% return of the MSCI All Country World Index ex-U.S. (ACWI^® ex-U.S.).

The Portfolio benefited from stock selection in the consumer staples sector, as positions in U.K.-based tobacco company British American Tobacco and Belgian brewer Anheuser-Busch InBev performed well on the resilience of their business models in spite of macroeconomic challenges.

Relative returns were also helped by stock selection in the energy sector. During the year, oil and gas producer Royal Dutch Shell performed well as the company benefited from cutting costs and elevated oil prices. British oil and gas explorer Tullow Oil also performed well due to expectations regarding recent exploration success.

Annual Report  7

In contrast, the consumer discretionary sector detracted from relative returns as positions in cyclical stocks, such as automotive companies Honda and Hyundai Mobis, detracted from performance on fears of slowing economic growth. We sold our position in Honda.

The Portfolio was negatively affected by its high exposure to the information technology sector as it underperformed the broader market. However, its negative impact was more than offset by positive stock selection in the sector, as positions in Brazilian payment processor Cielo performed well on speculation of a possible partnership with a Chinese company. In addition, German software company SAP performed well due to strong sales momentum.

Lazard International Strategic Equity Portfolio

For the year ended December 31, 2011, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of –9.70%, while Open Shares posted a total return of –10.01%, as compared with the –12.14% return for the EAFE Index.

Stock selection was strong in the materials sector, where housing materials manufacturer James Hardie reported strong results over the year despite a difficult external demand environment. The Portfolio’s domestic Japanese holdings were also resilient, particularly discount retailer Don Quijote and apartment builder Daito Trust Construction. In the health care sector, GlaxoSmithKline and Sanofi performed well as the sector rerated, while in the financials sector life insurer Prudential and Finnish financial services group Sampo proved relatively immune to the Eurozone travails. High exposure to, and stock selection in the consumer staples sector, particularly Unilever, brewer Anheuser-Busch InBev, and tobacco company British American Tobacco, also helped performance.

In contrast, the Portfolio’s exposure to emerging markets mostly hurt performance in 2011. The largest detractor from relative returns was Egyptian bank Commercial International Bank, as the country underwent a revolution during the period. The Portfolio’s South African holdings were hurt by the rand’s weakness relative to the U.S. dollar, and platinum miner Aquarius Platinum was negatively impacted by rising cost pressure. In Brazil, building materials company Duratex was hurt by the government’s credit policies, which adversely affected furniture demand. These stocks outweighed the strong performance from Indonesian television company Media Nusantara Citra, which benefited from continued strong demand and pricing power. Outside of emerging markets, stock selection was weak in the energy sector, with oil services companies Aker Solutions and Tecnicas Reunidas reporting disappointing results, and oil exploration company Cairn Energy failing to find commercial hydrocarbons in Greenland. A low exposure to the telecom services sector also detracted from relative returns, as the sector outperformed the broader market. The Portfolio subsequently sold its positions in Aquarius Platinum, Duratex, Aker Solutions, Tecnicas Reunidas and Cairn Energy.

Lazard International Small Cap Equity Portfolio

For the year ended December 31, 2011, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of –14.11%, while Open Shares posted a total return of –14.36%, as compared with the –15.94% return for the EAFE Small Cap Index.

Stock selection in Continental Europe and the United Kingdom was very strong while at a regional level, stock selection in Asia ex-Japan detracted. Stock selection in the health care and consumer discretionary sectors were the biggest contributors to performance, while stock selection in energy and industrials detracted from returns.

Telenet Group Holding, a Belgian telephone, cable, and internet service provider, was a top performer. The company gained market share in both fixed telephony and broadband services subscribers, helped in part by a recent win of the television rights for domestic football. It has an attractive shareholder returns policy and, in particular, has announced a plan involving an exceptionally high payout over the coming two years. Rightmove, which operates a website that lists U.K. real estate properties, also helped returns. The company benefited from stabilization in the housing market, which has allowed it to raise listing service subscription prices. Throughout the year, the company issued positive trading statements confirming strong trends, and continues to buy back its shares.

Man Wah Holdings, a Chinese furniture manufacturer and retailer, contributed to the underperformance in the Asia ex-Japan region. It is a leading furniture company in China, and also has a strong presence in the U.S. market. It was unable to raise prices sufficiently to offset higher input costs (e.g. leather) and was forced to revise down earnings guidance in consecutive reporting periods. We took the opportunity to exit this position. Ezra Holdings, which provides integrated offshore support and marine services, also detracted from

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performance. The company completed its acquisition of Aker Marine Contractors in March, and has rapidly added to its order book for sub-sea services. However, the stock has underperformed due to concerns about the company’s increased financial burden and ability to execute in its new business.

Lazard Emerging Markets Equity Portfolio

For the year ended December 31, 2011, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of –17.75%, while the Open Shares posted a total return of –18.02%, as compared with the –18.42% return for the EM Index.

Stock selection in the information technology sector added to relative returns, as Cielo and Redecard, both Brazilian credit card processors, performed well following expectations of strong results driven by volume growth and stable margins. Stock selection in Brazil helped performance, as Companhia de Bebidas das Americas, a beverage company, had strong share price performance due to rising volumes and pricing for its products. In addition, a higher-than-index exposure to the consumer staples sector also helped performance.

In contrast, stock selection in the financials sector hurt performance. Turkiye Is Bankasi, a Turkish bank, was negatively affected by central bank policies and a market regulator’s investigation into claims of opposition party influence on the company’s policies. Punjab National Bank, an Indian bank, fell as a result of potentially slower growth due to the slowing economy, and the risk of increased credit costs as interest rates rose in India.

Vale, a Brazilian iron ore mining company, detracted from relative returns, as shares fell amid concerns regarding potential changes in royalties and government pressure for the CEO to resign. Stock selection in the telecom services sector also hurt performance for the year.

Lazard Developing Markets Equity Portfolio

For the year ended December 31, 2011, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of –26.15%, while the Open Shares posted a total return of –26.34%, as compared with the –18.42% return for the EM Index.

For the year, stock selection was the largest drag on performance, particularly in the consumer discretionary sector. Corporacion Geo, a Mexican homebuilder, declined following the release of its 2010 year-end results, which led to concerns about its future growth rate. Shares of Geely Automobile, a Chinese automobile manufacturer and retailer, declined on concerns of slowing growth in China. Man Wah hurt performance, and we exited the position based on our expectation of declining margins.

While an overweight exposure to the consumer discretionary sector slightly offset weak stock selection in the sector, stock selection in, and an overweight exposure to, the financials sector detracted from the Portfolio’s relative returns. Shares of Halyk Savings Bank, a Kazakh bank, declined due to concerns over loan quality and growth. Shriram Transport Finance, an Indian commercial vehicle financing company, performed poorly following higher loan loss provisions relating to a mining ban within certain states in India.

Although the Portfolio ended 2011 with higher-than-index exposures to China and Russia, positions in these regions hurt performance during the year as concerns about a hard landing in China and political uncertainty in Russia created headwinds to performance. Stock selection in Mexico also had a negative effect.

Stock selection in, and a smaller-than-index exposure to, the consumer staples and telecom services sectors detracted from relative returns as the market gravitated toward the sectors’ defensive nature.

Stock selection in the industrials sector was strong for the year, although a higher-than-index exposure limited its positive impact. Marcopolo, a Brazilian bus body manufacturer, performed well due to solid earnings results and strong business momentum. Similarly, a lower-than-index exposure to information technology limited the value added by stock selection in that sector.

Stock selection in South Korea and a lower-than-index exposure to India helped performance during the period. Shares of Hyundai Mobis, a South Korean auto parts company, outperformed as its business continued to perform well amid the volatile environment.

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Lazard Emerging Markets Equity Blend Portfolio

For the year ended December 31, 2011, the Lazard Emerging Markets Equity Blend Portfolio’s Institutional Shares posted a total return of –20.43%, while Open Shares posted a total return of –20.74%, as compared with the –18.42% return of the EM Index.

The Portfolio is managed using a combination of two of the Investment Manager’s equity strategies in emerging markets, namely 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 relative growth strategies: Differentiation, Expansion, Mania, and Panic.

Changes made to the weighting of these economic contexts during 2011 reflected a consideration of many factors, including the Eurozone sovereign debt crisis; global macro data readings, particularly the Purchasing Managers’ Index (a measure of economic activity) in China, the United States, the United Kingdom, and the Eurozone; inflation in both the emerging and developed markets; commodity prices; investment flows into emerging markets; U.S. Federal Reserve and European Central Bank policies; U.S. and European policymakers’ initiatives; as well as employment and U.S. housing sector data.

In the second quarter of 2011, we increased the Portfolio’s overweight in relative growth, as we believed that capital would continue to seek higher-yielding assets in emerging markets, where debt levels and fiscal policies were on a more sustainable trajectory. At the beginning of June, we shifted to a modest overweight in relative value. We believed that a plateau or pullback in global manufacturing activity, together with a renewal of sovereign debt concerns in the Eurozone (which could dampen risk appetite, weaken the euro, and have a detrimental impact on demand from Europe, a large export destination for emerging market products) would favor value companies relative to growth companies within emerging markets. In the third quarter, we increased our overweight in value, as we believed that slowing manufacturing activity and weakening aggregate demand, in addition to austerity in the Eurozone and calls for fiscal consolidation in the United States, would favor more mature companies with higher levels of free cash flow, stable income streams, and that are less dependent on sales growth and debt financing. At the beginning of the fourth quarter, we reduced our overweight in value, as we believed that the heightened potential for a rebound in commodity prices (due to low inventory levels), stabilizing demand dynamics, and more attractive emerging market equity valuations reduced the probability of underperformance by growth companies with greater leverage and higher levels of capital expenditures. We subsequently shifted to a small overweight in growth, as we felt that an alleviation of liquidity concerns in the Eurozone, reduced probability of a recession in the United States, and stability of manufacturing data would gradually reduce volatility and favor relative growth companies in emerging markets over their relative value counterparts.

In 2011, stock selection in the information technology, materials, and industrials sectors helped performance, as did stock selection in South Korea and Brazil. In contrast, stock selection in the financials, telecom services, and energy sectors detracted from performance, as did stock selection in China and Mexico, and overweight exposures to Egypt and Turkey.

Lazard Emerging Markets Multi-Strategy Portfolio

For the period March 31, 2011 (the Portfolio’s inception) through December 31, 2011, the Lazard Emerging Markets Multi-Strategy Portfolio’s Institutional Shares posted a total return of –13.79%, while Open Shares posted a total return of –13.67%, as compared with the –20.06% return of the EM Index.

The Portfolio is managed by allocating assets among various emerging markets equity, debt and currency strategies; currently two of the Investment Manager’s equity strategies in emerging markets, namely a relative value and a relative growth strategy, and two of the Investment Manager’s fixed-income strategies in emerging markets, namely a debt and an income strategy. The Investment Manager considers four broad economic contexts pertinent to allocation decisions among the strategies: Differentiation, Expansion, Mania, and Panic.

Changes made to the weighting of these economic contexts during 2011 reflected a consideration of many factors, including the Eurozone sovereign debt crisis; global macro data readings, particularly the Purchasing Managers’ Index (a measure of economic activity) in China, the United States, the United Kingdom, and the Eurozone; inflation in

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both the emerging and developed markets; commodity prices; investment flows into emerging markets; U.S. Federal Reserve and European Central Bank policies; U.S. and European policymakers’ initiatives; as well as employment and U.S. housing sector data.

From inception, the Portfolio was initially overweight in equity versus fixed income and overweight in growth, within the equity allocation. During the second quarter of 2011, we increased our overweight in growth within the equity allocation, as we believed that capital would continue to seek higher-yielding assets in emerging markets, where debt levels and fiscal policies were on a more sustainable trajectory. At the beginning of June, we shifted to a modest overweight in value. We believed that a plateau or pullback in global manufacturing activity, together with a renewal of sovereign debt concerns in the Eurozone (which could dampen risk appetite, weaken the euro, and have a detrimental impact on demand from Europe, a large export destination for emerging market products) would favor value companies relative to growth companies within emerging markets. In the third quarter, we increased our overweight in value within the Portfolio’s equity allocation, as we believed that slowing manufacturing activity and weakening aggregate demand, in addition to austerity in the Eurozone and calls for fiscal consolidation in the United States, would favor more mature companies with higher levels of free cash flow, stable income streams, and that are less dependent on sales growth and debt financing. Subsequently, we shifted from an overall overweight in equity to an overall overweight in fixed income, as we felt that debt prices would be much more resilient as compared to equities, thanks to healthy balance sheets and lower levels of indebtedness for emerging market companies in general. In addition, within fixed income, we increased the Portfolio’s relative allocation to the debt strategy compared to the income strategy, due to the generally greater sensitivity of external debt to Treasuries as compared to local debt, and the propensity for sovereigns to use currency depreciation as a means to support growth. At the beginning of the fourth quarter, we reduced our overweight to value within the Portfolio’s equity allocation, as we believed that the heightened potential for a rebound in commodity prices (due to low inventory levels), stabilizing demand dynamics, and more attractive emerging market equity valuations reduced the probability of underperformance by growth companies with greater leverage and higher levels of capital expenditures. We subsequently shifted to an overweight in equity as opposed to fixed income and, within equity, established a small overweight in growth, as we felt that an alleviation of liquidity concerns in the Eurozone, reduced probability of a recession in the United States, and stability of manufacturing data would gradually reduce volatility and favor equity over fixed income and favor relative growth companies in emerging markets over their relative value counterparts.

For the period since the Portfolio’s inception through December 31, 2011, stock selection in the information technology, materials, and utilities sectors helped performance, as did an underweight position in materials, stock selection in South Korea and Brazil, long positions in Colombian peso, and sovereign credit bonds. In contrast, stock selection in the financials, consumer discretionary, and telecom services sectors detracted from performance, as did stock selection in China and Mexico, overweight exposures to Russia and Kazakhstan, and positions in Polish zloty.

Lazard Emerging Markets Debt Portfolio

For the period from February 28, 2011 (the Portfolio’s inception) through December 31, 2011, the Lazard Emerging Markets Debt Portfolio’s Institutional Shares posted a total return of 1.64%, while Open Shares posted a total return of 1.34%, as compared with the 2.99% return of the 50% JPMorgan EMBI Global Diversified^® Index/50% JPMorgan GBI-EM Global Diversified^® Index. The Portfolio ended the year approximately 50% invested in local currency debt versus 50% in external debt.

For the period from the Portfolio’s inception through December 31, 2011, the Portfolio’s underperformance versus the benchmark was primarily due to bid-offer spreads from initial investing of the Portfolio, and an overweight in local currency bonds, which underperformed hard currency. However, during the sell-off in August and September, and rally through the end of the year, the Portfolio outperformed the benchmark. Positive contributors to performance included overweight positions in sovereign credit in Venezuela, Ivory Coast, and Peru, and an overweight position in local currency in Indonesia.

Lazard U.S. Realty Income Portfolio

For the period from September 26, 2011 (inception of the Portfolio’s Institutional Shares) through December 31, 2011, the Lazard U.S. Realty Income Portfolio’s Institutional

Annual Report  11

Shares posted a total return of 9.71%, as compared with the 8.98% return of the 50% Wells Fargo Hybrid and Preferred Securities REIT^® Index/50% FTSE NAREIT All Equity REITs^® Index. For the calendar year ended December 31, 2011, the Lazard U.S. Realty Income Portfolio’s Open Shares posted a total return of –0.16%, as compared with the 9.61% return of the index.

For the Portfolio’s Open Shares, detractors among the common shares investments included an overweight position in the economically-sensitive real estate finance sectors, which came under pressure as the European fiscal crisis led to a sell-off and resultant flight to safety. Real estate finance companies also declined during 2011, but the price decline was somewhat offset by their high relative yields.

While the Portfolio’s Open Shares started off the year with approximately 60% allocated to REIT preferred shares, we shifted toward common shares as the real estate recovery continued, ending 2011 with approximately 38% of the Portfolio in REIT preferred shares. For the Portfolio’s Open Shares, preferred share investments were concentrated in higher-yielding, unrated issues throughout the year, which underperformed on a relative basis, as investors were willing to pay premiums for higher-rated, lower-yielding issues. Also detracting from performance were overweight positions in Cogdell Spencer and CommonWealth REIT.

Contributors to performance included an overweight position in the lodging sector, as the sector benefited from strong fundamental demand with limited new supply. Also contributing to performance were overweight positions in Cedar Realty and Sun Communities though the Portfolio did take the opportunity to sell its position in Sun Communities.

Lazard U.S. Realty Equity Portfolio

For the period from September 26, 2011 (inception of the Portfolio’s Institutional Shares) through December 31, 2011, the Lazard U.S. Realty Equity Portfolio’s Institutional Shares posted a total return of 20.84%, as compared with the 13.56% return of the FTSE NAREIT All Equity REITs Index. For the calendar year ended December 31, 2011, the Lazard U.S. Realty Equity Portfolio’s Open Shares posted a total return of 9.91%, as compared with the 8.28% return of the index.

In terms of relative performance, the Portfolio’s Open Shares benefited from overweight positions in regional mall REITs Glimcher Realty Trust and CBL & Associates. Both companies continued to shed historical stigmas with solid operating performance. Also helping the Portfolio’s performance was an overweight position in First Industrial Realty Trust, which continued to benefit from opportunistic deleveraging, strategic asset sales, and sound corporate management.

Detractors from performance for the Portfolio’s Open Shares included an underweight position in health care REITs. Due to our perception of high valuations without sufficient earnings growth support in the health care REIT sub-sector, the Portfolio was underweight health care REITs. However, the sub-sector outperformed as investors sought the defensive characteristics of this asset class. Poor selection within this sub-sector, specifically an investment in Cogdell Spencer, hurt overall relative performance. Also hurting performance was an overweight position in real estate service companies. Service companies came under pressure during the second half of the year, as investors feared a dramatic fall-off in investment and leasing activity.

Lazard International Realty Equity Portfolio

For the period from September 26, 2011 (inception of the Portfolio’s Institutional Shares) through December 31, 2011, the Lazard International Realty Equity Portfolio’s Institutional Shares posted a total return of 0.09%, as compared with the 2.48% return of the FTSE EPRA/NAREIT Global ex-U.S.^® Index. For the calendar year ended December 31, 2011, the Lazard International Realty Equity Portfolio’s Open Shares posted a total return of –20.35%, as compared with the –16.89% return of the index.

Contributors to relative performance during 2011 for the Portfolio’s Open Shares included Japan, despite the country’s underperformance to the index. The Portfolio’s best performer was Daito Trust Construction, a for-rent developer and landlord, which strongly outperformed as it gained significant market share during 2011, and continued to post strong order growth. Further helping performance was the Portfolio’s underweight allocation to the United Kingdom.

Detractors from relative performance during 2011 for the Portfolio’s Open Shares included Renhe, a Chinese retail real estate developer, as share price weakness was related to difficulty in collecting accounts receivable and resultant liquidity concerns. As a result, we exited from this position. An

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underweight allocation to Canada detracted from relative performance. Canada trailed only the United States in total returns for real estate stocks for the year. An overweight allocation to Brazil detracted from relative performance, excluding currency. Brazil was the worst-performing country in the international index in 2011. The region’s homebuilders, and our position in Gafisa, underwent a significant sell-off during 2011.

Lazard U.S. High Yield Portfolio

For the year ended December 31, 2011, the Lazard U.S. High Yield Portfolio’s Institutional Shares posted a total return of 5.17%, while Open Shares posted a total return of 4.89%, as compared with the 4.38% return for the Merrill Lynch High Yield Master II Index.

Portfolio performance lagged in the first half, outperformed in the third quarter, and modestly underperformed in the fourth quarter. Our higher-quality focus led to the out-performance for all of 2011. Approximately 52% of the invested Portfolio is rated BB– or better by Standard & Poor’s, and approximately 73% is rated B+ or better. The Portfolio experienced no defaults in 2011.

Performance was helped by overweight positions in the cable and healthcare sectors, and by underweight positions in bank and finance-related sectors. Performance was hurt by overweight positions in the gaming/hotel and building materials sectors.

Lazard U.S. Municipal Portfolio

For the 10 months from February 28, 2011 (the Portfolio’s inception) through December 31, 2011, the Lazard U.S. Municipal Portfolio’s Institutional Shares posted a total return of 4.46%, while Open Shares posted a total return of 4.20%, as compared with the 6.05% return for the Bank of America Merrill Lynch 1-10 Year Municipal Bond^® Index.

The Portfolio underperformed the index primarily due to a shorter relative duration and an underweight allocation to the 10-year maturity sector. An overweight in higher-rated issues and an underweight allocation to California issues also detracted from performance. Since the Portfolio’s inception, AAA general obligation bond yields fell dramatically across the yield curve, with 11 and 12-year yields posting the largest declines. In addition, credit spreads tightened as well over this time period. Finally, of the larger issuers in the marketplace, California issues posted notably strong performance. The Portfolio’s performance was helped by an overweight to Illinois municipal bonds (which posted impressive returns), an overweight in the medical sector, and an underweight in the power sector.

Lazard Capital Allocator Opportunistic Strategies Portfolio

For the year ended December 31, 2011, the Lazard Capital Allocator Opportunistic Strategies Portfolio’s Institutional Shares posted a total return of –3.28%, while Open Shares posted a total return of –3.72%. The benchmark returns for the year ended December 31, 2011 were –5.54% for the MSCI World Index and 0.26% for the Global Asset Allocation Blended Index¹. Three of the Portfolio’s four sectors, thematic, contrarian, and discounted, detracted from returns for the year, while diversifying investments contributed positively to performance.

The thematic sector, which represented approximately 44% of the Portfolio at the end of 2011, was hurt by country and sector investments focused on emerging markets growth. Specifically, investments with allocations to South Korea, China, Taiwan, Chile, agribusiness, materials, and water detracted from performance. The Portfolio exited its positions with exposure to Chile and water during the year. Contrarian investments, which comprised approximately 16% of the Portfolio as of year end, also hurt performance, as investments with allocations to Japan, Japan small cap, and financials declined. The positions in Japan and financials were sold during the year. Investments in the discounted sector, approximately 7% of the Portfolio as of year end, detracted from performance due to discount widening in The China Fund, a closed-end fund.

In the diversifying sector, which comprised approximately 33% of the Portfolio as of year end, short exposure to a basket of European financial companies significantly added to performance. The Portfolio exited this position close to year end, as it reached our valuation expectations. Positions in high yield fixed income, short-term corporate bonds, gold, and utilities also helped the Portfolio’s performance for the year.

Annual Report  13

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, 2011; 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 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.

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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, 2011
	One Year		Five Years		Since Inception		†
Institutional Shares**	–1.47	%	–2.23	%	1.89	%
Open Shares**	–1.77	%	–2.49	%	1.61	%
Russell 1000 Value Index	0.39	%	–2.64	%	1.29	%

*	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.

Annual Report  15

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, 2011
	One Year		Five Years		Since Inception		†
Institutional Shares**	1.65	%	–0.93	%	2.35	%
Open Shares**	1.42	%	–1.24	%	2.07	%
S&P 500 Index	2.11	%	–0.25	%	2.61	%

*	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.

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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, 2011
	One Year		Five Years		Ten Years
Institutional Shares**	–5.58	%	–0.69	%	5.24	%
Open Shares**	–5.84	%	–0.94	%	4.95	%
Russell Midcap Index	–1.55	%	1.41	%	6.99	%

*	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.

Annual Report  17

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, 2011
	One Year		Five Years		Ten Years
Institutional Shares**	–9.83	%	1.25	%	5.49	%
Open Shares**	–10.09	%	0.93	%	5.22	%
Russell 2500 Index	–2.51	%	1.24	%	6.57	%
Russell 2000/2500 Linked Index	–2.51	%	1.07	%	6.10	%

*	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 through August 24, 2008 and the Russell 2500 Index for all periods thereafter. The Russell 2000 Index is comprised of the 2,000 smallest U.S. companies included in the Russell 3000 Index. The indices are unmanaged, have no fees or costs and are not available for investment.
	The Portfolio was previously known as Lazard U.S. Small Cap Equity Portfolio. As of August 25, 2008, the Portfolio changed its name to Lazard U.S. Small-Mid Cap Equity Portfolio and changed its investment strategy to invest in equity securities of small-mid cap U.S. companies.
**	The performance of Institutional Shares may be greater than or less than the performance of Open Shares, primarily based on the differences in fees borne by shareholders investing in different classes.

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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, 2011
	One Year		Since Inception		†
Institutional Shares**	–1.55	%	2.45	%
Open Shares**	–1.95	%	2.08	%
UBS Global 50/50 Infrastructure & Utilities Index	–0.74	%	1.64	%
MSCI World Index	–5.54	%	2.75	%

*	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. 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 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.

Annual Report  19

Lazard International Equity Portfolio

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

Average Annual Total Returns*Years Ended December 31, 2011
	One Year		Five Years		Ten Years
Institutional Shares**	–7.17	%	–2.81	%	4.79	%
Open Shares**	–7.42	%	–3.11	%	4.50	%
EAFE Index	–12.14	%	–4.72	%	4.67	%

*	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 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.

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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 ACWI ex-U.S. and EAFE/ACWI ex-U.S. Linked Index*

Average Annual Total Returns* Years Ended December 31, 2011
	One Year		Five Years		Ten Years
Institutional Shares**	–7.14	%	–4.01	%	3.55	%
Open Shares**	–7.41	%	–4.30	%	3.24	%
MSCI ACWI ex-U.S.	–13.71	%	–2.92	%	6.31	%
EAFE/ACWI ex-U.S. Linked Index	–13.71	%	–4.94	%	4.55	%

*	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.is a free floated-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging market, excluding the United States. The EAFE/ACWI ex-U.S. Linked Index is an index created by the Portfolio’s Investment Manager, which links the performance of the EAFE Index for all periods through June 30, 2010 and the MSCI ACWI ex-U.S. for all periods thereafter. The 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 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.

Annual Report  21

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 EAFE Index*

Average Annual Total Returns*
Periods Ended December 31, 2011

	Institutional Shares				Open Shares
	One Year	Five Years	Since Inception	†	One Year	Five Years	Since Inception	†
International Strategic Equity Portfolio**	–9.70%	–2.21%	3.25%		–10.01%	–2.54%	0.61%
EAFE Index	–12.14%	–4.72%	1.01%		–12.14%	–4.72%	–1.14%

*	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 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.

22  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 EAFE Small Cap Index*

Average Annual Total Returns*
Years Ended December 31, 2011

	One Year		Five Years		Ten Years
Institutional Shares**		–14.11%		–6.71%		6.45%
Open Shares**		–14.36%		–6.95%		6.13%
EAFE Small Cap Index		–15.94%		–4.14%		9.01%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. Within the longer periods illustrated there may have been short-term fluctuations, counter to the overall trend of investment results, and no single period of any length may be taken as typical of what may be expected in future periods. The graph and table above do not reflect the deduction of taxes that a shareholder would pay on the Portfolio’s distributions or the redemption of Portfolio shares.
	The performance data of the index has been prepared from sources and data that the Investment Manager believes to be reliable, but no representation is made as to its accuracy. The 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 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  23

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 EM Index*

Average Annual Total Returns*
Years Ended December 31, 2011

	One Year	Five Years	Ten Years
Institutional Shares**	–17.75%	3.53%	16.00%
Open Shares**	–18.02%	3.18%	15.68%
EM Index	–18.42%	2.40%	13.86%

*	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 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.

24Annual Report

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 EM Index*

Average Annual Total Returns*
Periods Ended December 31, 2011

	One Year	Since Inception	†
Institutional Shares**	–26.15%	8.32%
Open Shares**	–26.34%	8.01%
EM Index	–18.42%	7.19%

*	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 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.

Annual Report  25

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 EM Index*

Average Annual Total Returns*
Periods Ended December 31, 2011

	One Year		Since Inception		†
Institutional Shares**		–20.43%		–0.50%
Open Shares**		–20.74%		–0.85%
EM Index		–18.42%		1.63%

*	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, State Street 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. 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 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.

26  Annual Report

Lazard Emerging Markets Multi-Strategy Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Multi-Strategy Portfolio and EM Index*

Total Returns*
Period Ended December 31, 2011

	Since Inception		†
Institutional Shares**		–13.79%
Open Shares**		–13.67%
EM Index		–20.06%

*	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. 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 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 March 31, 2011.

Annual Report  27

Lazard Emerging Markets Debt Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Emerging Markets Debt Portfolio and 50% JPMorgan EMBI Global Diversified^® Index/50% JPMorgan GBI-EM Global Diversified^® Index

Total Returns*
Period Ended December 31, 2011

	Since Inception		†
Institutional Shares**		1.64%
Open Shares**		1.34%
50% JPMorgan EMBI Global Diversified Index/50% JPMorgan GBI-EM Global Diversified Index		2.99%

*	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. 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 JPMorgan EMBI Global Diversified Index is a uniquely-weighted version of the EMBI Global. The JPMorgan GBI-EM Global Diversified Index is a uniquely-weighted version of the GBI-EM Global. They limit the weights of those index countries with larger debt stocks by only including specified portions of these countries’ eligible current face amounts of debt outstanding. 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 February 28, 2011.

28  Annual Report

Lazard U.S. Realty Income Portfolio

Comparison of Changes in Value of $10,000 Investment in the Open Shares of Lazard U.S. Realty Income Portfolio, 50% Wells Fargo Hybrid and Preferred Securities REIT^® Index/50% FTSE NAREIT All Equity REITs^® Index (the “Realty Income Indices”), Dow Jones U.S. Select Real Estate Securities^® Index, BofA Merrill Lynch Fixed Rate Preferred Securities^® Index and S&P 500 Index

Average Annual Total Returns*
Periods Ended December 31, 2011

	Institutional Shares		Open Shares
	Since Inception	†	One Year		Since Inception	†
U.S. Realty Income Portfolio**	9.71%			–0.16%	11.43%
Realty Income Indices	8.98%			9.61%	10.63%
Dow Jones U.S. Select Real Estate Securities Index	N/A			8.87%	–1.14%
BofA Merrill Lynch Fixed Rate Preferred Securities Index	N/A			4.11%	2.81%
S&P 500 Index	N/A			2.11%	1.66%

*	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. 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 Wells Fargo Hybrid and Preferred Securities REIT Index tracks the performance of fixed-rate U.S. dollar-denominated preferred securities issued in the U.S. domestic market. The FTSE NAREIT All Equity REITs Index is a free-float adjusted market capitalization index that is designed to measure the performance of equity REITs across all industries. The Dow Jones U.S. Select Real Estate Securities Index measures the performance of publicly traded real estate securities. The BofA Merrill Lynch Fixed Rate Preferred Securities Index tracks the performance of fixed-rate U.S. dollar-denominated preferred securities issued in the U.S. domestic market. 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 Portfolio’s Open Shares previously compared performance to the Dow Jones U.S. Select Real Estate Securities Index and BofA Merrill Lynch Fixed Rate Preferred Securities Index. The Investment Manager believes that the Realty Income Indices are 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 September 26, 2011 and for Open Shares was July 30, 2008.

Annual Report  29

Lazard U.S. Realty Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Open Shares of Lazard U.S. Realty Equity Portfolio, FTSE NAREIT All Equity REITs Index, Dow Jones U.S. Select Real Estate Securities Index and S&P 500 Index

Average Annual Total Returns*
Periods Ended December 31, 2011

	Institutional Shares		Open Shares
	Since Inception	†	One Year		Since Inception	†
U.S. Realty Equity Portfolio**	20.84%			9.91%	33.40%
FTSE NAREIT All Equity REITs Index	13.56%			8.28%	21.04%
Dow Jones U.S. Select Real Estate Securities Index	N/A			8.87%	21.74%
S&P 500 Index	N/A			2.11%	14.11%

*	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. 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 FTSE NAREIT All Equity REITs Index is a free-float adjusted market capitalization index that is designed to measure the performance of equity REITs across all industries. The Dow Jones U.S. Select Real Estate Securities Index measures the performance of publicly traded real estate securities. 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 Portfolio’s Open Shares previously compared performance to the Dow Jones U.S. Select Real Estate Securities Index. The Investment Manager believes that FTSE NAREIT All Equity REITs 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 September 26, 2011 and for Open Shares was December 31, 2008.

30  Annual Report

Lazard International Realty Equity Portfolio

Comparison of Changes in Value of $10,000 Investment in the Open Shares of Lazard International Realty Equity Portfolio, FTSE EPRA/NAREIT Global ex-U.S.^® Index and S&P Developed ex-U.S. Property^® Index

Average Annual Total Returns*
Periods Ended December 31, 2011

	Institutional Shares		Open Shares
	Since Inception	†	One Year		Since Inception	†
International Realty Equity Portfolio**	0.09%			–20.35%	18.82%
FTSE EPRA/NAREIT Global ex-U.S. Index	2.48%			–16.89%	12.48%
S&P Developed ex-U.S. Property Index	N/A			–14.71%	12.87%

*	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. 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 FTSE EPRA/NAREIT Global ex-U.S. Index is a free-float adjusted market capitalization index that is designed to measure the performance of REITs in both developed and emerging markets while excluding those listed or incorporated in the United States. There are currently 46 countries eligible for inclusion in the index with 24 classified as Developed and 22 as Emerging. S&P Developed ex-U.S. Property Index includes all developed market property companies with an available market capitalization of at least $100 million and derive more than 60 percent of their revenue from property-related activities. The Portfolio’s Open Shares previously compared performance to the S&P Developed ex-U.S. Property Index. The Investment Manager believes that the FTSE EPRA/NAREIT Global ex-U.S. 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 September 26, 2011 and for Open Shares was December 31, 2008.

Annual Report  31

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, 2011

	One Year		Five Years		Ten Years
Institutional Shares**		5.17%		5.52%		6.18%
Open Shares**		4.89%		5.27%		5.91%
Merrill Lynch High Yield Master II Index		4.38%		7.34%		8.59%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; 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.

32  Annual Report

Lazard U.S. Municipal Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard U.S. Municipal Portfolio and Bank of America Merrill Lynch 1-10 Year Municipal Bond^® Index

Total Returns*
Period Ended December 31, 2011

	Since Inception		†
Institutional Shares**		4.46%
Open Shares**		4.20%
Bank of America Merrill Lynch 1-10 Year Municipal Bond Index		6.05%

*	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. 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 Bank of America Merrill Lynch 1-10 Year Municipal Bond Index is a subset of the Bank of America Merrill Lynch U.S. Municipal Securities Index including all securities with a remaining term to final maturity less than 10 years. The Bank of America Merrill Lynch U.S. Municipal Securities Index tracks the performance of U.S. dollar denominated investment grade tax-exempt debt publicly issued by U.S. states and territories, and their political subdivisions. 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 February 28, 2011.

Annual Report  33

Lazard Capital Allocator Opportunistic Strategies Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Capital Allocator Opportunistic Strategies Portfolio, MSCI World Index and Global Asset Allocation Blended Index*

Average Annual Total Returns*
Periods Ended December 31, 2011

	Institutional Shares						Open Shares
	One Year		Since Inception		†	One Year		Since Inception		†
Capital Allocator Opportunistic Strategies Portfolio**		–3.28%		0.68%			–3.72%		0.46%
MSCI World Index		–5.54%		–3.02%			–5.54%		–2.93%
Global Asset Allocation Blended Index		0.26%		1.48%			0.26%		1.53%

*	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 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.

34  Annual Report

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

Expense Example

As a shareholder in a Portfolio of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees, distribution and service (12b-1) fees (Open Shares only), and other expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Portfolio and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the six month period from July 1, 2011 through December 31, 2011 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 7/1/11		Ending Account Value 12/31/11		Expenses Paid During Period* 7/1/11 - 12/31/11		Annualized Expense Ratio During Period 7/1/11 - 12/31/11
U.S. Equity Value Portfolio
Institutional Shares
Actual	$	1,000.00	$	941.80	$	3.67		0.75	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42	$	3.82		0.75	%
Open Shares
Actual	$	1,000.00	$	941.20	$	5.14		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91	$	5.34		1.05	%
U.S. Strategic Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	964.90	$	3.71		0.75	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.42	$	3.82		0.75	%
Open Shares
Actual	$	1,000.00	$	963.70	$	5.20		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.91	$	5.35		1.05	%
U.S. Mid Cap Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	903.40	$	4.56		0.95	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.41	$	4.84		0.95	%
Open Shares
Actual	$	1,000.00	$	902.40	$	5.82		1.21	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.09	$	6.17		1.21	%

Annual Report  35

Portfolio	Beginning Account Value 7/1/11		Ending Account Value 12/31/11		Expenses Paid During Period* 7/1/11 - 12/31/11		Annualized Expense Ratio During Period 7/1/11 - 12/31/11
U.S. Small-Mid Cap Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	849.20	$	4.26		0.91	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.60	$	4.65		0.91	%
Open Shares
Actual	$	1,000.00	$	848.50	$	5.73		1.23	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.01	$	6.26		1.23	%
Global Listed Infrastructure Portfolio
Institutional Shares
Actual	$	1,000.00	$	926.80	$	5.30		1.09	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.71	$	5.55		1.09	%
Open Shares
Actual	$	1,000.00	$	924.30	$	7.76		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.14	$	8.13		1.60	%
International Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	870.30	$	4.85		1.03	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.02	$	5.24		1.03	%
Open Shares
Actual	$	1,000.00	$	869.00	$	6.27		1.33	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.50	$	6.77		1.33	%
International Equity Select Portfolio
Institutional Shares
Actual	$	1,000.00	$	871.70	$	5.43		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.41	$	5.85		1.15	%
Open Shares
Actual	$	1,000.00	$	870.10	$	6.83		1.45	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.90	$	7.37		1.45	%
International Strategic Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	850.20	$	4.09		0.88	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.79	$	4.46		0.88	%
Open Shares
Actual	$	1,000.00	$	848.30	$	5.38		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.39	$	5.87		1.15	%
International Small Cap Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	836.30	$	5.23		1.13	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.51	$	5.75		1.13	%
Open Shares
Actual	$	1,000.00	$	834.90	$	6.61		1.43	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.00	$	7.27		1.43	%

36Annual Report

Portfolio	Beginning Account Value 7/1/11		Ending Account Value 12/31/11		Expenses Paid During Period* 7/1/11 - 12/31/11		Annualized Expense Ratio During Period 7/1/11 - 12/31/11
Emerging Markets Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	824.70	$	5.11		1.11	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.61	$	5.65		1.11	%
Open Shares
Actual	$	1,000.00	$	823.50	$	6.46		1.41	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.12	$	7.15		1.41	%
Developing Markets Equity Portfolio
Institutional Shares
Actual	$	1,000.00	$	749.40	$	5.86		1.33	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.51	$	6.76		1.33	%
Open Shares
Actual	$	1,000.00	$	747.90	$	7.13		1.62	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.04	$	8.23		1.62	%
Emerging Markets Equity Blend Portfolio
Institutional Shares
Actual	$	1,000.00	$	788.60	$	6.09		1.35	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.40	$	6.87		1.35	%
Open Shares
Actual	$	1,000.00	$	787.60	$	7.43		1.65	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,016.89	$	8.39		1.65	%
Emerging Markets Multi-Strategy Portfolio
Institutional Shares
Actual	$	1,000.00	$	867.30	$	6.12		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.65	$	6.61		1.30	%
Open Shares
Actual	$	1,000.00	$	866.50	$	7.55		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.12	$	8.16		1.60	%
Emerging Markets Debt Portfolio
Institutional Shares
Actual	$	1,000.00	$	972.20	$	5.11		1.03	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.03	$	5.23		1.03	%
Open Shares
Actual	$	1,000.00	$	969.30	$	6.86		1.38	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.24	$	7.03		1.38	%
U.S. Realty Income Portfolio
Institutional Shares**
Actual	$	1,000.00	$	1,097.10	$	3.20		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,010.23	$	3.07		1.15	%
Open Shares
Actual	$	1,000.00	$	953.00	$	7.22		1.47	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.81	$	7.46		1.47	%

Annual Report  37

Portfolio	Beginning Account Value 7/1/11		Ending Account Value 12/31/11		Expenses Paid During Period* 7/1/11 - 12/31/11		Annualized Expense Ratio During Period 7/1/11 - 12/31/11
U.S. Realty Equity Portfolio
Institutional Shares**
Actual	$	1,000.00	$	1,208.40	$	3.52		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,010.10	$	3.21		1.20	%
Open Shares
Actual	$	1,000.00	$	1,002.80	$	8.94		1.77	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,016.28	$	9.00		1.77	%
International Realty Equity Portfolio
Institutional Shares**
Actual	$	1,000.00	$	1,000.90	$	3.46		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,009.83	$	3.47		1.30	%
Open Shares
Actual	$	1,000.00	$	785.30	$	8.19		1.82	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,016.03	$	9.25		1.82	%
U.S. High Yield Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,013.30	$	2.79		0.55	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,022.43	$	2.80		0.55	%
Open Shares
Actual	$	1,000.00	$	1,010.10	$	4.31		0.85	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.92	$	4.33		0.85	%
U.S. Municipal Portfolio
Institutional Shares
Actual	$	1,000.00	$	1,027.80	$	2.04		0.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,023.19	$	2.04		0.40	%
Open Shares
Actual	$	1,000.00	$	1,026.20	$	3.59		0.70	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.66	$	3.59		0.70	%
Capital Allocator Opportunistic Strategies Portfolio
Institutional Shares
Actual	$	1,000.00	$	944.50	$	5.00		1.02	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.06	$	5.19		1.02	%
Open Shares
Actual	$	1,000.00	$	942.00	$	6.47		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).
**	The inception date for Institutional Shares of U.S. Realty Income Portfolio, U.S. Realty Equity Portfolio and International Realty Equity Portfolio was September 26, 2011.

38  Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2011

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 Global Listed Infrastructure Portfolio
Consumer Discretionary		8.9	%		14.0	%		17.1	%		15.0	%		—	%
Consumer Staples		8.9			14.6			8.2			5.5			—
Energy		12.5			12.6			8.1			6.7			—
Financials		19.9			10.8			15.2			20.8			—
Health Care		17.8			13.6			8.4			6.6			—
Industrials		7.4			10.9			11.7			15.5			56.1
Information Technology		11.7			17.4			17.9			16.6			—
Materials		3.9			4.6			4.6			7.7			—
Telecommunication Services		3.8			—			—			—			—
Utilities		2.1			—			5.6			3.6			43.9
Short-Term Investments		3.1			1.5			3.2			2.0			—
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%
Sector*	Lazard International Equity Portfolio			Lazard International Equity Select Portfolio			Lazard International Strategic Equity Portfolio			Lazard International Small Cap Equity Portfolio			Lazard Emerging Markets Equity Portfolio
Consumer Discretionary		13.5	%		11.6	%		21.1	%		17.0	%		5.3	%
Consumer Staples		10.5			12.7			13.4			4.7			14.4
Energy		9.4			9.4			9.4			5.8			7.6
Financials		18.8			18.4			17.3			7.2			21.6
Health Care		11.6			10.7			11.8			11.0			—
Industrials		11.0			11.5			7.7			27.0			7.9
Information Technology		8.4			10.5			5.2			16.2			17.9
Materials		8.0			7.6			9.2			4.1			13.4
Telecommunication Services		5.5			6.0			1.2			2.7			9.7
Utilities		1.1			—			—			—			2.2
Short-Term Investments		2.2			1.6			3.7			4.3			—
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 Emerging Markets Multi-Strategy Portfolio			Lazard U.S. Realty Income Portfolio			Lazard U.S. Realty Equity Portfolio
Consumer Discretionary		14.5	%		9.6	%		5.4	%		2.4	%		5.2	%
Consumer Staples		1.8			6.3			3.6			—			—
Energy		16.3			12.3			9.8			—			—
Financials		29.3			22.1			13.5			94.0			93.3
Fixed Income		—			—			18.4			—			—
Health Care		—			—			—			—			—
Industrials		15.1			13.5			8.1			—			—
Information Technology		9.0			14.3			7.9			—			—
Materials		8.4			8.5			5.8			—			—
Telecommunication Services		3.2			7.0			4.2			—			—
Utilities		1.0			1.2			1.1			—			—
Short-Term Investments		1.4			5.2			22.2			3.6			1.5
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report  39

Sector*	Lazard International Realty Equity Portfolio			Lazard Capital Allocator Opportunistic Strategies Portfolio
Consumer Discretionary		5.7	%		9.0	%
Consumer Staples		—			3.5
Energy		—			6.5
Financials		94.3			5.0
Fixed Income		—			26.3
Health Care		—			5.3
Industrials		—			7.8
Information Technology		—			10.5
Materials		—			6.4
Telecommunication Services		—			1.1
Utilities		—			2.4
Other		—			5.2
Short-Term Investments		—			11.0
Total Investments		100.0	%		100.0	%

* Represents percentage of total investments.

40  Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Region and Credit Rating December 31, 2011

Region*	Lazard Emerging Markets Debt Portfolio
Africa		9.9	%
Asia		37.9
Europe		12.6
North America		10.8
South America		19.7
Short-Term Investment		9.1
Total Investments		100.0	%

S&P Credit Rating*	Lazard U.S. High Yield Portfolio			Lazard U.S. Municipal Portfolio
AAA		—	%		25.8	%
AA+		—			19.8
AA		—			7.9
AA-		—			16.4
A+		—			8.2
A		—			3.5
A-		—			4.6
BBB+		0.7			—
BBB		1.1			1.2
BBB-		5.4			—
BB+		6.8			—
BB		12.1			—
BB-		24.3			—
B+		19.6			—
B		13.7			—
B-		10.3			—
CCC+		2.4			—
CCC		0.3			—
CCC-		0.5			—
NR		—			3.9
NA		2.8			8.7
Total Investments		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report  41

The Lazard Funds, Inc. Portfolios of Investments December 31, 2011

Description	Shares		Value
Lazard U.S. Equity Value Portfolio
Common Stocks | 97.3%
Aerospace & Defense | 1.8%
General Dynamics Corp.		2,150	$	142,782
The Boeing Co.		800		58,680
				201,462
Agriculture | 0.5%
Potash Corp. of Saskatchewan, Inc.		1,400		57,792
Alcohol & Tobacco | 1.4%
Altria Group, Inc.		2,695		79,907
Molson Coors Brewing Co., Class B		1,795		78,154
				158,061
Automotive | 1.6%
Ford Motor Co. (a)		11,835		127,345
Lear Corp.		1,445		57,511
				184,856
Banking | 10.8%
Bank of America Corp.		16,680		92,741
Fifth Third Bancorp		8,310		105,703
JPMorgan Chase & Co.		13,806		459,049
PNC Financial Services Group, Inc.		2,525		145,617
Wells Fargo & Co.		15,595		429,798
				1,232,908
Cable Television | 1.1%
Comcast Corp., Class A		5,535		130,405
Chemicals | 1.0%
Dow Chemical Co.		3,865		111,157
Commercial Services | 0.5%
Dun & Bradstreet Corp.		800		59,864
Computer Software | 3.0%
BMC Software, Inc. (a)		1,760		57,693
Microsoft Corp.		8,020		208,199
Oracle Corp.		2,810		72,076
				337,968
Consumer Products | 4.5%
Energizer Holdings, Inc. (a)		1,140		88,327
Newell Rubbermaid, Inc.		11,315		182,737
The Procter & Gamble Co.		3,735		249,162
				520,226

Description	Shares		Value
Electric | 2.1%
American Electric Power Co., Inc.		1,720	$	71,053
Entergy Corp.		850		62,093
PG&E Corp.		1,290		53,174
PPL Corp.		1,915		56,339
				242,659
Energy Exploration & Production | 3.7%
Anadarko Petroleum Corp.		755		57,629
Devon Energy Corp.		1,845		114,390
EXCO Resources, Inc.		5,640		58,938
Occidental Petroleum Corp.		1,435		134,460
QEP Resources, Inc.		1,770		51,861
				417,278
Energy Integrated | 6.9%
Chevron Corp.		4,101		436,346
ConocoPhillips		2,170		158,128
Exxon Mobil Corp.		700		59,332
Hess Corp.		2,350		133,480
				787,286
Energy Services | 1.5%
Halliburton Co.		2,365		81,616
National Oilwell Varco, Inc.		1,245		84,648
				166,264
Financial Services | 4.8%
American Express Co.		1,335		62,972
Ameriprise Financial, Inc.		2,385		118,391
BlackRock, Inc.		300		53,472
Citigroup, Inc.		4,813		126,630
Invesco, Ltd.		6,135		123,252
The Goldman Sachs Group, Inc.		750		67,823
				552,540
Food & Beverages | 1.4%
General Mills, Inc.		1,580		63,848
Ralcorp Holdings, Inc. (a)		1,115		95,332
				159,180
Health Services | 3.4%
Aetna, Inc.		2,825		119,187
Express Scripts, Inc. (a)		1,770		79,101
WellPoint, Inc.		2,860		189,475
				387,763
Insurance | 4.3%
Aflac, Inc.		2,270		98,200
Everest Re Group, Ltd.		1,340		112,681
MetLife, Inc.		5,140		160,265
Prudential Financial, Inc.		2,415		121,040
				492,186

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

42Annual Report

Description	Shares		Value
Lazard U.S. Equity Value Portfolio (concluded)
Leisure & Entertainment | 3.8%
International Game Technology		4,870	$	83,764
The Walt Disney Co.		2,710		101,625
Time Warner, Inc.		3,860		139,501
Viacom, Inc., Class B		2,415		109,665
				434,555
Manufacturing | 5.5%
Corning, Inc.		8,905		115,587
Dover Corp.		1,835		106,522
General Electric Co.		18,715		335,186
Honeywell International, Inc.		1,295		70,383
				627,678
Medical Products | 2.3%
Baxter International, Inc.		2,000		98,960
Covidien PLC		2,250		101,273
Medtronic, Inc.		1,625		62,156
				262,389
Metal & Glass Containers | 0.9%
Owens-Illinois, Inc. (a)		5,075		98,354
Metals & Mining | 2.0%
Alpha Natural Resources, Inc. (a)		2,840		58,021
Freeport-McMoRan Copper & Gold, Inc.		2,300		84,617
Newmont Mining Corp.		1,540		92,415
				235,053
Pharmaceutical & Biotechnology | 12.2%
Amgen, Inc.		2,415		155,067
Gilead Sciences, Inc. (a)		2,665		109,078
Johnson & Johnson		3,848		252,352
Merck & Co., Inc.		5,400		203,580
Pfizer, Inc.		26,184		566,622
Warner Chilcott PLC, Class A (a)		7,140		108,028
				1,394,727
Retail | 4.1%
CVS Caremark Corp.		3,195		130,292
Lowe’s Cos., Inc.		3,720		94,414
Wal-Mart Stores, Inc.		4,035		241,131
				465,837

Description	Shares		Value
Semiconductors & Components | 4.3%
Intel Corp.		14,150	$	343,138
TE Connectivity, Ltd.		2,320		71,479
Texas Instruments, Inc.		2,645		76,996
				491,613
Technology Hardware | 3.5%
Apple, Inc. (a)		155		62,775
Cisco Systems, Inc.		15,510		280,421
Hewlett-Packard Co.		2,195		56,543
				399,739
Telecommunications | 3.8%
AT&T, Inc.		14,545		439,841
Transportation | 0.6%
Union Pacific Corp.		680		72,039
Total Common Stocks (Identified cost $10,813,763)				11,121,680
Short-Term Investment | 3.2%
State Street Institutional Treasury
Money Market Fund
(Identified cost $359,795)		359,795		359,795
Total Investments | 100.5% (Identified cost $11,173,558) (b)			$	11,481,475
Liabilities in Excess of Cash and
Other Assets | (0.5)%				(61,500	)
Net Assets | 100.0%			$	11,419,975

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

Annual Report  43

Description	Shares		Value
Lazard U.S. Strategic Equity Portfolio
Common Stocks | 97.3%
Aerospace & Defense | 3.6%
Raytheon Co.		29,000	$	1,403,020
The Boeing Co.		16,400		1,202,940
				2,605,960
Agriculture | 1.1%
Monsanto Co.		11,400		798,798
Alcohol & Tobacco | 2.2%
Molson Coors Brewing Co., Class B		35,900		1,563,086
Automotive | 1.7%
Lear Corp.		31,000		1,233,800
Banking | 4.7%
BB&T Corp.		19,000		478,230
JPMorgan Chase & Co.		37,791		1,256,551
Wells Fargo & Co.		61,900		1,705,964
				3,440,745
Cable Television | 3.9%
Comcast Corp., Class A		121,800		2,869,608
Commercial Services | 3.2%
Apollo Group, Inc., Class A (a)		16,200		872,694
Corrections Corp. of America (a)		53,700		1,093,869
Republic Services, Inc.		12,700		349,885
				2,316,448
Computer Software | 3.4%
Microsoft Corp.		44,335		1,150,937
Oracle Corp.		51,850		1,329,952
				2,480,889
Consumer Products | 2.8%
Energizer Holdings, Inc. (a)		15,500		1,200,940
Newell Rubbermaid, Inc.		53,200		859,180
				2,060,120
Energy Exploration & Production | 2.0%
Devon Energy Corp.		23,400		1,450,800
Description		Shares		Value
Energy Integrated | 9.5%
Chevron Corp.		12,500	$	1,330,000
ConocoPhillips		45,100		3,286,437
Consol Energy, Inc.		37,000		1,357,900
Marathon Petroleum Corp.		27,600		918,804
				6,893,141
Energy Services | 1.1%
Halliburton Co.		23,500		810,985
Financial Services | 3.5%
American Express Co.		14,700		693,399
Ameriprise Financial, Inc.		29,700		1,474,308
Janus Capital Group, Inc.		54,100		341,371
				2,509,078
Food & Beverages | 3.6%
General Mills, Inc.		17,500		707,175
Ralcorp Holdings, Inc. (a)		11,915		1,018,732
Sysco Corp.		30,800		903,364
				2,629,271
Health Services | 1.4%
Quest Diagnostics, Inc.		17,000		987,020
Insurance | 2.6%
Prudential Financial, Inc.		18,900		947,268
The Travelers Cos., Inc.		16,500		976,305
				1,923,573
Leisure & Entertainment | 1.5%
International Game Technology		35,400		608,880
Viacom, Inc., Class B		11,000		499,510
				1,108,390
Manufacturing | 3.7%
Dover Corp.		17,300		1,004,265
Honeywell International, Inc.		22,793		1,238,800
Northrop Grumman Corp.		7,300		426,904
				2,669,969
Medical Products | 2.5%
Baxter International, Inc.		20,600		1,019,288
Medtronic, Inc.		21,500		822,375
				1,841,663
Metal & Glass Containers | 1.2%
Ball Corp.		24,830		886,679
Metals & Mining | 2.3%
Freeport-McMoRan Copper & Gold, Inc.		9,600		353,184
Newmont Mining Corp.		21,800		1,308,218
				1,661,402

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

44  Annual Report

Description	Shares		Value
Lazard U.S. Strategic Equity Portfolio (concluded)
Pharmaceutical & Biotechnology | 9.7%
Amgen, Inc.		16,400	$	1,053,044
Gilead Sciences, Inc. (a)		17,700		724,461
Johnson & Johnson		11,960		784,337
Merck & Co., Inc.		22,600		852,020
Pfizer, Inc.		167,900		3,633,356
				7,047,218
Retail | 10.5%
AutoZone, Inc. (a)		2,500		812,425
CVS Caremark Corp.		36,600		1,492,548
Lowe’s Cos., Inc.		44,400		1,126,872
Macy’s, Inc.		13,700		440,866
Wal-Mart Stores, Inc.		62,400		3,729,024
				7,601,735
Semiconductors & Components | 3.9%
Intel Corp.		74,800		1,813,900
Texas Instruments, Inc.		35,500		1,033,405
				2,847,305
Technology | 2.9%
eBay, Inc. (a)		22,300		676,359
Google, Inc., Class A (a)		2,250		1,453,275
				2,129,634
Technology Hardware | 7.2%
Apple, Inc. (a)		940		380,700
Cisco Systems, Inc.		79,855		1,443,779
EMC Corp. (a)		36,000		775,440
Hewlett-Packard Co.		17,900		461,104
International Business Machines Corp.		8,390		1,542,753
Lexmark International, Inc., Class A		18,400		608,488
				5,212,264
Transportation | 1.6%
Norfolk Southern Corp.		16,100		1,173,046
Total Common Stocks (Identified cost $62,655,576)				70,752,627
Description		Shares		Value
Preferred Stock | 1.1%
Automotive | 1.1%
Better Place, Inc., Series B
(Identified cost $453,501) (a), (k)		181,401	$	823,560
Short-Term Investment | 1.5%
State Street Institutional Treasury
Money Market Fund
(Identified cost $1,094,289)		1,094,289		1,094,289
Total Investments | 99.9%
(Identified cost $64,203,366) (b)			$	72,670,476
Cash and Other Assets in Excess of Liabilities | 0.1%				46,573
Net Assets | 100.0%			$	72,717,049

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

Annual Report  45

Description	Shares		Value
Lazard U.S. Mid Cap Equity Portfolio
Common Stocks | 97.0%
Aerospace & Defense | 2.0%
Rockwell Collins, Inc.		50,900	$	2,818,333
Alcohol & Tobacco | 2.3%
Molson Coors Brewing Co., Class B		77,600		3,378,704
Automotive | 1.7%
Lear Corp.		60,700		2,415,860
Banking | 2.9%
Fifth Third Bancorp		169,000		2,149,680
Signature Bank (a)		33,500		2,009,665
				4,159,345
Chemicals | 1.6%
Eastman Chemical Co.		57,800		2,257,668
Commercial Services | 5.2%
Corrections Corp. of America (a)		151,000		3,075,870
Equifax, Inc.		78,900		3,056,586
The Interpublic Group of Cos., Inc.		131,800		1,282,414
				7,414,870
Computer Software | 8.0%
Autodesk, Inc. (a)		63,400		1,922,922
BMC Software, Inc. (a)		49,500		1,622,610
Compuware Corp. (a)		140,200		1,166,464
Intuit, Inc.		45,100		2,371,809
Quest Software, Inc. (a)		119,000		2,213,400
Symantec Corp. (a)		137,400		2,150,310
				11,447,515
Construction & Engineering | 0.7%
Foster Wheeler AG (a)		53,900		1,031,646
Consumer Products | 4.5%
Energizer Holdings, Inc. (a)		52,800		4,090,944
Newell Rubbermaid, Inc.		149,900		2,420,885
				6,511,829
Education | 1.2%
DeVry, Inc.		43,300		1,665,318

Description	Shares		Value
Electric | 5.8%
CMS Energy Corp.		204,400	$	4,513,152
Wisconsin Energy Corp.		107,900		3,772,184
				8,285,336
Energy Exploration & Production | 3.1%
Energen Corp.		45,000		2,250,000
Noble Energy, Inc.		23,600		2,227,604
				4,477,604
Energy Integrated | 1.5%
Consol Energy, Inc.		21,500		789,050
Marathon Petroleum Corp.		42,700		1,421,483
				2,210,533
Energy Services | 3.5%
Cameron International Corp. (a)		28,300		1,392,077
Rowan Cos., Inc. (a)		72,700		2,204,991
Tidewater, Inc.		30,700		1,513,510
				5,110,578
Financial Services | 4.5%
Ameriprise Financial, Inc.		84,700		4,204,508
Invesco, Ltd.		112,900		2,268,161
				6,472,669
Food & Beverages | 3.2%
Campbell Soup Co.		44,000		1,462,560
Ralcorp Holdings, Inc. (a)		36,000		3,078,000
				4,540,560
Health Services | 2.3%
AMERIGROUP Corp. (a)		17,700		1,045,716
Laboratory Corp. of America Holdings (a)		25,600		2,200,832
				3,246,548
Insurance | 1.1%
PartnerRe, Ltd.		25,700		1,650,197
Leisure & Entertainment | 3.1%
Darden Restaurants, Inc.		38,700		1,763,946
International Game Technology		159,300		2,739,960
				4,503,906
Manufacturing | 5.0%
Dover Corp.		64,500		3,744,225
Thomas & Betts Corp. (a)		63,600		3,472,560
				7,216,785
Medical Products | 2.4%
DENTSPLY International, Inc.		42,800		1,497,572
Zimmer Holdings, Inc. (a)		36,700		1,960,514
				3,458,086

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

46  Annual Report

Description	Shares		Value
Lazard U.S. Mid Cap Equity Portfolio (concluded)
Metal & Glass Containers | 0.8%
Ball Corp.		33,700	$	1,203,427
Metals & Mining | 2.3%
Cliffs Natural Resources, Inc.		26,600		1,658,510
Compass Minerals International, Inc.		24,200		1,666,170
				3,324,680
Pharmaceutical & Biotechnology | 3.9%
Medicis Pharmaceutical Corp., Class A		61,900		2,058,175
Warner Chilcott PLC, Class A (a)		135,900		2,056,167
Waters Corp. (a)		19,300		1,429,165
				5,543,507
Real Estate | 6.9%
Duke Realty Corp. REIT		153,200		1,846,060
Kilroy Realty Corp. REIT		47,100		1,793,097
LaSalle Hotel Properties REIT		77,700		1,881,117
Tanger Factory Outlet Centers, Inc. REIT		82,200		2,410,104
The Macerich Co. REIT		40,200		2,034,120
				9,964,498
Retail | 7.2%
ANN, Inc. (a)		69,200		1,714,776
AutoZone, Inc. (a)		3,200		1,039,904
Big Lots, Inc. (a)		66,200		2,499,712
Macy’s, Inc.		55,400		1,782,772
Ross Stores, Inc.		69,000		3,279,570
				10,316,734
Semiconductor & Components | 4.5%
Analog Devices, Inc.		40,700		1,456,246
SanDisk Corp. (a)		43,700		2,150,477
Xilinx, Inc.		90,200		2,891,812
				6,498,535

Description	Shares		Value
Technology | 2.7%
Amdocs, Ltd. (a)		93,900	$	2,678,967
Teradata Corp. (a)		24,500		1,188,495
				3,867,462
Technology Hardware | 3.1%
Ingram Micro, Inc., Class A (a)		81,500		1,482,485
Lexmark International, Inc., Class A		88,600		2,930,002
				4,412,487
Total Common Stocks
(Identified cost $140,192,139)				139,405,220
Preferred Stock | 1.6%
Automotive | 1.6%
Better Place, Inc., Series B
(Identified cost $1,307,499) (a), (k)		523,000		2,374,420
Short-Term Investment | 3.2%
State Street Institutional Treasury Money Market Fund (Identified cost $4,641,830)		4,641,830		4,641,830
Total Investments | 101.8% (Identified cost $146,141,468) (b)			$	146,421,470
Liabilities in Excess of Cash and Other Assets | (1.8)%				(2,633,652	)
Net Assets | 100.0%			$	143,787,818

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

Annual Report  47

Description	Shares		Value
Lazard U.S. Small-Mid Cap Equity Portfolio
Common Stocks | 97.5%
Automotive | 2.4%
Modine Manufacturing Co. (a)		238,300	$	2,254,318
Tenneco, Inc. (a)		73,750		2,196,275
				4,450,593
Banking | 6.9%
East West Bancorp, Inc.		104,500		2,063,875
PacWest Bancorp		140,601		2,664,389
Prosperity Bancshares, Inc.		60,900		2,457,315
Signature Bank (a)		47,700		2,861,523
Wintrust Financial Corp.		105,193		2,950,664
				12,997,766
Chemicals | 2.9%
Cytec Industries, Inc.		46,400		2,071,760
Rockwood Holdings, Inc. (a)		47,700		1,877,949
Solutia, Inc. (a)		85,200		1,472,256
				5,421,965
Commercial Services | 2.9%
American Reprographics Co. (a)		278,243		1,277,135
Equifax, Inc.		48,500		1,878,890
Team, Inc. (a)		74,700		2,222,325
				5,378,350
Computer Software | 5.1%
Autodesk, Inc. (a)		53,700		1,628,721
Compuware Corp. (a)		269,800		2,244,736
j2 Global, Inc.		87,830		2,471,536
Quest Software, Inc. (a)		60,900		1,132,740
Red Hat, Inc. (a)		47,750		1,971,598
				9,449,331
Construction & Engineering | 2.0%
MasTec, Inc. (a)		83,700		1,453,869
Quanta Services, Inc. (a)		101,900		2,194,926
				3,648,795
Consumer Products | 8.2%
Central Garden & Pet Co., Class A (a)		366,600		3,050,112
Energizer Holdings, Inc. (a)		55,200		4,276,896
Matthews International Corp., Class A		78,150		2,456,254
Newell Rubbermaid, Inc.		151,900		2,453,185
Tempur-Pedic International, Inc. (a)		21,900		1,150,407
The Middleby Corp. (a)		21,650		2,035,966
				15,422,820

Description	Shares		Value
Energy Exploration & Production | 2.4%
Energen Corp.		49,300	$	2,465,000
QEP Resources, Inc.		68,900		2,018,770
				4,483,770
Energy Services | 4.3%
GulfMark Offshore, Inc., Class A (a)		52,600		2,209,726
Helmerich & Payne, Inc.		53,400		3,116,424
Key Energy Services, Inc. (a)		171,900		2,659,293
				7,985,443
Financial Services | 1.3%
Stifel Financial Corp. (a)		76,800		2,461,440
Food & Beverages | 1.6%
Ralcorp Holdings, Inc. (a)		34,800		2,975,400
Forest & Paper Products | 2.9%
Rock-Tenn Co., Class A		38,400		2,215,680
Schweitzer-Mauduit International, Inc.		48,500		3,223,310
				5,438,990
Gas Utilities | 2.5%
AGL Resources, Inc.		53,800		2,273,588
New Jersey Resources Corp.		48,900		2,405,880
				4,679,468
Health Services | 1.9%
AMERIGROUP Corp. (a)		22,600		1,335,208
VCA Antech, Inc. (a)		107,600		2,125,100
				3,460,308
Housing | 1.1%
Owens Corning, Inc. (a)		69,900		2,007,528
Insurance | 1.9%
Arch Capital Group, Ltd. (a)		97,100		3,615,033
Leisure & Entertainment | 3.1%
Bally Technologies, Inc. (a)		100,705		3,983,890
Texas Roadhouse, Inc.		124,900		1,861,010
				5,844,900
Manufacturing | 8.8%
BE Aerospace, Inc. (a)		89,800		3,476,158
Carpenter Technology Corp.		34,200		1,760,616
FLIR Systems, Inc.		73,900		1,852,673
Harsco Corp.		114,800		2,362,584
Regal-Beloit Corp.		46,150		2,352,265
The Timken Co.		51,100		1,978,081
TriMas Corp. (a)		150,500		2,701,475
				16,483,852

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

48  Annual Report

Description	Shares		Value
Lazard U.S. Small-Mid Cap Equity Portfolio (concluded)
Medical Products | 2.3%
DENTSPLY International, Inc.		34,900	$	1,221,151
Haemonetics Corp. (a)		50,600		3,097,732
				4,318,883
Metals & Mining | 0.9%
Compass Minerals International, Inc.		25,700		1,769,445
Pharmaceutical & Biotechnology | 2.5%
Medicis Pharmaceutical Corp., Class A		84,800		2,819,600
Waters Corp. (a)		24,600		1,821,630
				4,641,230
Real Estate | 10.5%
CBRE Group, Inc., Class A (a)		151,900		2,311,918
Duke Realty Corp. REIT		163,000		1,964,150
Essex Property Trust, Inc. REIT		13,100		1,840,681
Kilroy Realty Corp. REIT		95,450		3,633,782
LaSalle Hotel Properties REIT		122,100		2,956,041
Tanger Factory Outlet Centers, Inc. REIT		116,500		3,415,780
The Macerich Co. REIT		71,177		3,601,556
				19,723,908
Retail | 5.9%
American Eagle Outfitters, Inc.		150,550		2,301,910
ANN, Inc. (a)		123,500		3,060,330
Brown Shoe Co., Inc.		191,736		1,706,450
Iconix Brand Group, Inc. (a)		143,700		2,340,873
Williams-Sonoma, Inc.		39,800		1,532,300
				10,941,863
Semiconductors & Components | 3.4%
ON Semiconductor Corp. (a)		374,800		2,893,456
Xilinx, Inc.		109,800		3,520,188
				6,413,644
Technology | 1.7%
SS&C Technologies Holdings, Inc. (a)		181,039		3,269,564
Technology Hardware | 4.0%
Lexmark International, Inc., Class A		87,700		2,900,239
NCR Corp. (a)		132,700		2,184,242
Polycom, Inc. (a)		145,700		2,374,910
				7,459,391

Description	Shares		Value
Transportation | 3.0%
Echo Global Logistics, Inc. (a)		156,176	$	2,522,242
Hub Group, Inc., Class A (a)		51,400		1,666,902
UTi Worldwide, Inc.		101,950		1,354,916
				5,544,060
Water | 1.1%
California Water Service Group		111,900		2,043,294
Total Common Stocks (Identified cost $184,066,734)				182,331,034
Preferred Stock | 0.4%
Automotive | 0.4%
Better Place, Inc., Series B (Identified cost $452,901) (a), (k)		181,161		822,471

Description	Principal Amount (000)		Value
Repurchase Agreement | 2.0%
State Street Bank and Trust Co., 0.01%, 01/03/12 (Dated 12/30/11, collateralized by $3,855,000 United States Treasury Note, 2.00%, 11/15/21, with a value of $3,898,369) Proceeds of $3,817,004 (Identified cost $3,817,000)	$	3,817	$	3,817,000
Total Investments | 99.9% (Identified cost $188,336,635) (b)			$	186,970,505
Cash and Other Assets in Excess of Liabilities | 0.1%				111,029
Net Assets | 100.0%			$	187,081,534

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

Annual Report  49

Description	Shares		Value
Lazard Global Listed Infrastructure Portfolio
Common Stocks | 95.1%
Australia | 19.4%
DUET Group	3,027,379	$	5,434,189
Hastings Diversified Utilities Fund	911,313		1,910,787
Macquarie Atlas Roads Group (a)	2,331,054		3,218,673
SP AusNet	1,205,857		1,159,350
Spark Infrastructure Group (c)	3,651,059		5,134,668
Sydney Airport	163,594		445,082
Transurban Group	801,676		4,608,144
			21,910,893
Austria | 2.2%
Flughafen Wien AG	66,570		2,519,698
Canada | 0.5%
Canadian Pacific Railway, Ltd.	8,200		555,467
France | 2.9%
Aeroports de Paris	47,595		3,264,792
Germany | 4.4%
Fraport AG	100,269		4,931,382
Italy | 21.7%
Atlantia SpA	564,168		9,032,261
Autostrada Torino-Milano SpA	475,051		4,602,040
Hera SpA	1,625,078		2,319,893
Snam Rete Gas SpA	146,747		646,893
Societa Iniziative Autostradali e Servizi SpA	669,249		5,041,143
Terna Rete Elettrica Nazionale SpA	850,550		2,866,547
			24,508,777
Japan | 13.6%
Osaka Gas Co., Ltd.	1,480,300		5,846,580
Toho Gas Co., Ltd.	523,350		3,331,707
Tokyo Gas Co., Ltd.	1,330,700		6,120,148
			15,298,435
Mexico | 3.7%
Grupo Aeroportuario del Centro Norte SAB de CV	1,223,347		1,911,110
Grupo Aeroportuario del Pacifico SAB de CV, B Shares	320,700		1,085,876
Grupo Aeroportuario del Sureste SAB de CV, B Shares	201,500		1,126,287
			4,123,273

Description	Shares		Value
South Korea | 3.5%
Macquarie Korea Infrastructure Fund	901,617	$	3,913,268
Spain | 7.6%
Abertis Infraestructuras SA	214,722		3,429,336
Enagas SA	71,200		1,316,832
Red Electrica Corporacion SA	90,513		3,873,449
			8,619,617
Switzerland | 2.9%
Flughafen Zuerich AG	9,455		3,281,518
United States | 12.7%
American States Water Co.	30,400		1,060,960
California Water Service Group	127,534		2,328,771
CSX Corp.	233,700		4,921,722
Norfolk Southern Corp.	15,525		1,131,151
PG&E Corp.	63,779		2,628,970
SJW Corp.	22,300		527,172
Union Pacific Corp.	11,106		1,176,570
Wisconsin Energy Corp.	15,200		531,392
			14,306,708
Total Common Stocks
(Identified cost $115,939,931)			107,233,828
Short-Term Investment | 0.0%
State Street Institutional Treasury Money Market Fund (Identified cost $5,410)	5,410		5,410
Total Investments | 95.1% (Identified cost $115,945,341) (b)		$	107,239,238
Cash and Other Assets in Excess of Liabilities | 4.9%			5,559,038
Net Assets | 100.0%		$	112,798,276

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

50  Annual Report

Lazard Global Listed Infrastructure Portfolio (concluded)

Forward Currency Contracts open at December 31, 2011:

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
MXN		SSB		02/16/12		3,704,204	$	264,037	$	264,522	$	485	$	—
MXN		SSB		02/16/12		8,368,883		604,000		597,631		—		6,369
MXN		SSB		02/16/12		13,493,061		965,756		963,553		—		2,203
Total Forward Currency Purchase Contracts							$	1,833,793	$	1,825,706	$	485	$	8,572
Forward Currency Sale Contracts
AUD		HSB		02/16/12		22,309,926	$	22,710,165	$	22,707,745	$	2,420	$	—
CAD		CAN		03/14/12		55,822		54,960		54,709		251		—
CAD		CAN		03/14/12		544,365		536,231		533,511		2,720		—
CHF		CIT		03/14/12		299,462		317,818		319,274		—		1,456
CHF		CIT		03/14/12		2,789,463		3,015,147		2,974,016		41,131		—
EUR		BRC		02/16/12		30,754,385		41,157,056		39,816,045		1,341,011		—
EUR		CAN		02/16/12		2,655,795		3,554,649		3,438,315		116,334		—
JPY		HSB		03/14/12		71,557,351		920,075		930,824		—		10,749
JPY		HSB		03/14/12		940,195,499		12,116,234		12,230,138		—		113,904
JPY		MEL		03/14/12		177,654,330		2,290,246		2,310,942		—		20,696
KRW		MEL		02/23/12		4,553,151,856		3,911,643		3,938,865		—		27,222
MXN		SSB		02/16/12		86,600,072		6,371,958		6,184,203		187,755		—
Total Forward Currency Sale Contracts							$	96,956,182	$	95,438,587		1,691,622		174,027
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts											$	1,692,107	$	182,599

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

Annual Report  51

Description	Shares		Value
Lazard International Equity Portfolio
Common Stocks | 95.8%
Australia | 4.7%
James Hardie Industries SE		206,840	$	1,442,812
QBE Insurance Group, Ltd.		71,050		941,076
Telstra Corp., Ltd.		768,600		2,617,794
				5,001,682
Belgium | 3.1%
Anheuser-Busch InBev NV		53,080		3,249,797
Brazil | 2.7%
Banco do Brasil SA		93,065		1,182,491
Cielo SA		41,140		1,063,100
MRV Engenharia e Participacoes SA		114,200		655,108
				2,900,699
Canada | 1.8%
Potash Corp. of Saskatchewan, Inc.		20,000		826,700
Rogers Communications, Inc., Class B		26,700		1,028,687
				1,855,387
China | 0.9%
Weichai Power Co., Ltd., Class H		185,000		909,922
Denmark | 0.4%
AP Moeller - Maersk AS Class B		56		369,739
Finland | 1.2%
Sampo Oyj, A Shares		50,360		1,249,471
France | 10.2%
AXA SA		48,790		634,306
BNP Paribas SA		29,218		1,147,698
Danone SA		14,580		916,524
Sanofi SA		42,627		3,130,898
Technip SA		15,330		1,440,843
Total SA		41,246		2,108,615
Valeo SA		35,060		1,393,510
				10,772,394
Germany | 6.6%
Bayerische Motoren Werke AG		25,930		1,737,061
GEA Group AG		16,700		472,266
Merck KGaA		15,912		1,586,364
SAP AG		28,880		1,526,889
Siemens AG		17,458		1,670,676
				6,993,256
Description		Shares		Value
Ireland | 1.0%
Ryanair Holdings PLC Sponsored ADR (a)		39,000	$	1,086,540
Italy | 0.8%
Atlantia SpA		51,830		829,792
Japan | 14.8%
Asics Corp.		51,190		577,276
Canon, Inc.		37,100		1,643,640
Daito Trust Construction Co., Ltd.		26,100		2,238,015
Don Quijote Co., Ltd.		51,000		1,749,916
Fanuc Corp.		10,300		1,576,380
JS Group Corp.		62,100		1,190,042
Mitsubishi Corp.		73,400		1,482,876
Sumitomo Mitsui Financial Group, Inc.		59,200		1,649,016
Yahoo Japan Corp.		5,266		1,696,039
Yamada Denki Co., Ltd.		26,820		1,825,865
				15,629,065
Netherlands | 1.4%
ING Groep NV (a)		209,970		1,510,951
New Zealand | 0.7%
Telecom Corp. of New Zealand, Ltd.		468,100		754,244
Russia | 1.4%
Sberbank of Russia (l)		610,260		1,503,668
South Africa | 0.8%
Mr Price Group, Ltd. ADR		40,300		797,940
South Korea | 2.3%
Hyundai Mobis		3,590		909,965
Samsung Electronics Co., Ltd. GDR		3,379		1,556,706
				2,466,671
Spain | 1.8%
Amadeus IT Holding SA, A Shares		74,320		1,205,725
Mediaset Espana Comunicacion SA		120,218		686,162
				1,891,887
Sweden | 2.4%
Assa Abloy AB, Class B		53,300		1,336,750
Swedbank AB, A Shares		92,700		1,200,835
				2,537,585
Switzerland | 5.3%
Julius Baer Group, Ltd.		41,480		1,622,458
Novartis AG		70,080		4,006,490
				5,628,948

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

52  Annual Report

Description	Shares		Value
Lazard International Equity Portfolio (concluded)
Turkey | 1.0%
Koc Holding AS		144,700	$	434,004
Turkiye Garanti Bankasi AS ADR		190,600		592,766
				1,026,770
United Kingdom | 30.5%
BG Group PLC		62,810		1,342,692
BHP Billiton PLC		73,300		2,137,250
British American Tobacco PLC		49,049		2,327,469
British Sky Broadcasting Group PLC		67,700		770,137
GlaxoSmithKline PLC		144,950		3,312,455
Informa PLC		287,891		1,615,353
International Power PLC		208,730		1,093,060
Petrofac, Ltd.		32,160		719,700
Prudential PLC		206,380		2,046,444
Rexam PLC		311,524		1,706,835
Royal Dutch Shell PLC, A Shares		85,700		3,155,614
Standard Chartered PLC		87,533		1,915,377
Tullow Oil PLC		46,530		1,013,100
Unilever PLC		92,850		3,118,960
Vodafone Group PLC		458,108		1,272,769
Wm Morrison Supermarkets PLC		240,990		1,220,828
WPP PLC		122,340		1,283,410
Xstrata PLC		139,210		2,114,369
				32,165,822
Total Common Stocks (Identified cost $98,085,217)				101,132,230
Description	Principal Amount (000)		Value
Repurchase Agreement | 2.1%
State Street Bank and Trust Co., 0.01%, 01/03/12 (Dated 12/30/11, collateralized by $2,285,000 United States Treasury Note, 2.00%, 11/15/21, with a value of $2,310,706) Proceeds of $2,263,003 (Identified cost $2,263,000)	$	2,263	$	2,263,000
Total Investments | 97.9%
(Identified cost $100,348,217) (b)			$	103,395,230
Cash and Other Assets in Excess of Liabilities | 2.1%				2,184,135
Net Assets | 100.0%			$	105,579,365

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

Annual Report  53

Description	Shares		Value
Lazard International Equity Select Portfolio
Common Stocks | 97.2%
Australia | 4.5%
BHP Billiton, Ltd.		4,737	$	166,765
Telstra Corp., Ltd.		42,137		143,516
				310,281
Belgium | 3.5%
Anheuser-Busch InBev NV		3,963		242,633
Brazil | 6.5%
Banco do Brasil SA		10,558		134,151
Cielo SA		5,480		141,609
MRV Engenharia e Participacoes SA		12,485		71,620
Vale SA Sponsored ADR		5,101		109,416
				456,796
Canada | 1.1%
Rogers Communications, Inc., Class B		2,013		77,556
China | 1.2%
Weichai Power Co., Ltd., Class H		16,957		83,403
Finland | 1.1%
Sampo Oyj, A Shares		3,177		78,824
France | 10.8%
AXA SA		3,158		41,056
BNP Paribas SA		1,594		62,613
Danone SA		1,037		65,188
LVMH Moet Hennessy Louis Vuitton SA		693		98,123
Sanofi SA		2,642		194,051
Technip SA		772		72,559
Total SA		3,100		158,481
Valeo SA		1,600		63,594
				755,665
Germany | 6.0%
Bayerische Motoren Werke AG		1,617		108,323
GEA Group AG		1,199		33,907
Merck KGaA		840		83,745
SAP AG		3,684		194,774
				420,749
Indonesia | 1.4%
PT Telekomunikasi Indonesia Tbk Sponsored ADR		3,214		98,798
Description	Shares		Value
Ireland | 1.4%
Ryanair Holdings PLC Sponsored ADR (a)		3,557	$	99,098
Italy | 1.2%
Atlantia SpA		5,066		81,106
Japan | 13.5%
Canon, Inc.		2,592		114,833
Daito Trust Construction Co., Ltd.		1,465		125,621
Fanuc Corp.		986		150,904
JS Group Corp.		3,700		70,904
Mitsubishi Estate Co., Ltd.		5,990		89,496
Sumitomo Mitsui Financial Group, Inc.		3,676		102,395
Yahoo Japan Corp.		397		127,863
Yamada Denki Co., Ltd.		2,370		161,346
				943,362
Netherlands | 1.1%
ING Groep NV (a)		10,985		79,048
Russia | 2.6%
Mobile TeleSystems OJSC Sponsored ADR		3,489		51,219
Sberbank of Russia (l)		53,173		131,017
				182,236
South Africa | 1.8%
Mr Price Group, Ltd.		6,699		66,222
Standard Bank Group, Ltd.		5,018		61,384
				127,606
South Korea | 2.2%
Hyundai Mobis		293		74,268
KT&G Corp.		1,131		79,916
				154,184
Sweden | 3.3%
Assa Abloy AB, Class B		5,855		146,842
Swedbank AB, A Shares		6,321		81,882
				228,724
Switzerland | 3.6%
Novartis AG		4,334		247,776
Taiwan | 2.1%
Taiwan Semiconductor Manufacturing Co., Ltd.		59,341		148,553
Thailand | 0.8%
Kasikornbank Public Co. Ltd.		13,500		53,273

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

54  Annual Report

Description	Shares		Value
Lazard International Equity Select Portfolio (concluded)
Turkey | 2.1%
Koc Holding AS		19,314	$	57,929
Turkcell Iletisim Hizmetleri AS (a)		9,613		45,076
Turkiye Garanti Bankasi AS		13,060		40,689
				143,694
United Kingdom | 25.4%
BG Group PLC		5,052		107,997
British American Tobacco PLC		4,308		204,423
British Sky Broadcasting Group PLC		4,983		56,685
GlaxoSmithKline PLC		9,145		208,985
Informa PLC		18,374		103,096
Petrofac, Ltd.		4,488		100,436
Prudential PLC		12,042		119,407
Rexam PLC		19,848		108,747
Royal Dutch Shell PLC, A Shares		3,348		121,978
Standard Chartered PLC		3,218		70,416
Tullow Oil PLC		3,992		86,918
Unilever PLC		5,841		196,207
Description	Shares		Value
Wm Morrison Supermarkets PLC		16,828	$	85,249
Wolseley PLC		1,977		65,458
Xstrata PLC		9,029		137,136
				1,773,138
Total Common Stocks (Identified cost $6,880,295)				6,786,503
Short-Term Investment | 1.6%
State Street Institutional Treasury Money Market Fund (Identified cost $109,274)		109,274		109,274
Total Investments | 98.8%
(Identified cost $6,989,569) (b)			$	6,895,777
Cash and Other Assets in Excess of Liabilities | 1.2%				86,475
Net Assets | 100.0%			$	6,982,252

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

Annual Report  55

Description	Shares		Value
Lazard International Strategic Equity Portfolio
Common Stocks | 93.7%
Australia | 3.6%
Caltex Australia, Ltd.		249,831	$	3,007,555
James Hardie Industries SE		1,238,500		8,639,154
Toll Holdings, Ltd.		1,470,550		6,347,213
				17,993,922
Belgium | 2.4%
Anheuser-Busch InBev NV		177,030		10,838,576
Umicore SA		24,580		1,013,870
				11,852,446
China | 1.9%
CITIC Securities Co., Ltd. (a), (c)		2,889,500		4,754,694
Weichai Power Co., Ltd., Class H		939,000		4,618,469
				9,373,163
Egypt | 1.2%
Commercial International Bank Egypt SAE		1,042,625		3,265,794
Eastern Co. SAE		192,096		2,954,343
				6,220,137
Finland | 2.5%
Sampo Oyj, A Shares		510,100		12,655,979
France | 8.8%
BNP Paribas SA		123,233		4,840,654
Christian Dior SA		71,460		8,472,746
Cie Generale de Geophysique - Veritas (a)		176,158		4,133,505
Sanofi SA		176,070		12,932,115
Technip SA		77,320		7,267,188
Valeo SA		159,030		6,320,875
				43,967,083
Germany | 5.9%
Bayerische Motoren Werke AG		98,530		6,600,564
GEA Group AG		281,677		7,965,649
Merck KGaA		56,270		5,609,900
Sky Deutschland AG (a)		696,060		1,266,632
Symrise AG		296,803		7,920,913
				29,363,658
Description	Shares		Value
Hong Kong | 1.1%
Yingde Gases Group Co.		5,229,000	$	5,339,012
India | 0.8%
United Phosphorus, Ltd.		1,588,051		3,805,282
Indonesia | 1.6%
PT Media Nusantara Citra Tbk		54,102,000		7,816,225
Ireland | 3.1%
Kerry Group PLC Class A		227,960		8,347,184
Ryanair Holdings PLC Sponsored ADR (a)		261,150		7,275,639
				15,622,823
Japan | 12.2%
Asics Corp.		699,250		7,885,527
Daito Trust Construction Co., Ltd.		131,200		11,250,098
Don Quijote Co., Ltd.		437,200		15,001,237
JS Group Corp.		273,800		5,246,914
Yahoo Japan Corp.		30,983		9,978,804
Yamada Denki Co., Ltd.		168,460		11,468,499
				60,831,079
Netherlands | 2.4%
ASM International NV		210,575		6,202,937
ING Groep NV (a)		805,300		5,794,965
				11,997,902
Russia | 1.4%
Sberbank of Russia (l)		2,821,104		6,951,141
South Africa | 2.4%
Aspen Pharmacare Holdings, Ltd.		500,530		5,994,542
Life Healthcare Group Holdings, Ltd.		2,495,570		6,380,706
				12,375,248
South Korea | 1.3%
Hyundai Mobis		24,666		6,252,146
Spain | 1.9%
Amadeus IT Holding SA, A Shares		586,270		9,511,310
Switzerland | 4.8%
Julius Baer Group, Ltd.		236,192		9,238,469
Novartis AG		254,250		14,535,532
				23,774,001

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

56  Annual Report

Description	Shares		Value
Lazard International Strategic Equity Portfolio (concluded)
United Kingdom | 34.4%
AMEC PLC		644,218	$	9,079,270
Associated British Foods PLC		743,010		12,773,613
BBA Aviation PLC		2,364,978		6,537,603
BG Group PLC		528,360		11,294,776
British American Tobacco PLC		418,058		19,837,653
British Sky Broadcasting Group PLC		678,690		7,720,591
Carnival PLC		290,000		9,574,866
GlaxoSmithKline PLC		554,220		12,665,254
IG Group Holdings PLC		984,400		7,290,719
Informa PLC		2,709,601		15,203,541
Prudential PLC		1,222,760		12,124,772
Rexam PLC		2,274,730		12,463,209
Rockhopper Exploration PLC (a)		1,030,826		4,326,359
TalkTalk Telecom Group PLC		2,812,118		5,908,848
Tullow Oil PLC		332,790		7,245,857
Unilever PLC		340,604		11,441,362
Xstrata PLC		407,890		6,195,172
				171,683,465
Description	Shares		Value
Total Common Stocks (Identified cost $461,823,237)			$	467,386,022
Preferred Stock | 1.4%
Brazil | 1.4%
Banco Bradesco SA (Identified cost $7,256,322)		421,872		6,954,866
Short-Term Investment | 3.6%
State Street Institutional Treasury Money Market Fund (Identified cost $18,014,350)		18,014,350		18,014,350
Total Investments | 98.7%
(Identified cost $487,093,909) (b)			$	492,355,238
Cash and Other Assets in Excess of Liabilities | 1.3%				6,335,629
Net Assets | 100.0%			$	498,690,867

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

Annual Report  57

Description	Shares		Value
Lazard International Small Cap Equity Portfolio
Common Stocks | 94.6%
Australia | 5.3%
Cabcharge Australia, Ltd.		135,776	$	622,145
Fairfax Media, Ltd.		366,626		269,989
Industrea, Ltd.		355,082		355,915
James Hardie Industries SE		143,565		1,001,437
Macquarie Atlas Roads Group (a)		532,568		735,360
				2,984,846
Austria | 2.9%
Andritz AG		10,322		856,328
Kapsch TrafficCom AG		10,431		789,769
				1,646,097
Belgium | 5.4%
Arseus NV		68,038		971,282
EVS Broadcast Equipment SA		11,590		592,365
Kinepolis Group NV		8,835		630,738
Telenet Group Holding NV		23,514		897,469
				3,091,854
China | 1.4%
AAC Technologies Holdings, Inc.		358,000		806,659
Finland | 0.0%
Vacon Oyj		1		40
France | 2.4%
Valeo SA		18,216		724,021
Virbac SA		4,066		630,964
				1,354,985
Germany | 6.2%
CompuGroup Medical AG		73,146		823,622
CTS Eventim AG		37,864		1,136,927
Dialog Semiconductor PLC (a)		21,961		357,562
NORMA Group		24,515		507,657
Wirecard AG		42,106		676,837
				3,502,605
Hong Kong | 0.9%
EVA Precision Industrial Holdings, Ltd.		2,034,000		492,355
Ireland | 1.4%
C&C Group PLC		1,785		6,630
DCC PLC		34,407		814,411
				821,041
Description	Shares		Value
Italy | 1.7%
DiaSorin SpA		15,607	$	393,685
MARR SpA		65,704		551,468
				945,153
Japan | 28.0%
Ain Pharmaciez, Inc.		24,600		1,182,539
Asahi Holdings, Inc.		44,601		884,835
Benesse Holdings, Inc.		15,700		759,809
Daiseki Co., Ltd.		35,900		584,419
Don Quijote Co., Ltd.		33,700		1,156,317
Dr. Ci:Labo Co., Ltd.		179		952,326
eAccess, Ltd.		1,658		393,551
JAFCO Co., Ltd.		21,900		402,036
JSR Corp.		37,000		682,604
Konami Corp.		38,550		1,154,446
Kurita Water Industries, Ltd.		22,700		589,840
Misumi Group, Inc.		37,000		849,889
Nomura Research Institute, Ltd.		24,100		544,810
OSG Corp.		41,700		524,975
Rinnai Corp.		10,400		744,498
Santen Pharmaceutical Co., Ltd.		19,290		794,456
Shinko Plantech Co., Ltd.		75,800		612,545
Suruga Bank, Ltd.		100,300		897,839
Sysmex Corp.		20,100		654,941
Tamron Co., Ltd.		21,100		509,064
USS Co., Ltd.		11,080		1,001,907
				15,877,646
Netherlands | 6.4%
Aalberts Industries NV		39,701		666,952
ASM International NV		20,153		593,650
Gemalto NV		12,875		626,213
Imtech NV		21,569		558,733
InterXion Holding NV		46,600		626,770
Unit 4 NV		23,856		565,024
				3,637,342
Norway | 4.5%
BW Offshore, Ltd.		323,944		511,846
Kongsberg Gruppen ASA		51,403		996,973
TGS Nopec Geophysical Co. ASA		45,902		1,016,915
				2,525,734
Singapore | 1.6%
Ezra Holdings, Ltd. (a)		758,000		490,899
XP Power, Ltd.		28,927		420,036
				910,935

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

58  Annual Report

Description	Shares		Value
Lazard International Small Cap Equity Portfolio (concluded)
Sweden | 7.7%
Elekta AB, B Shares		22,016	$	954,915
Getinge AB, B Shares		31,796		805,751
Indutrade AB		18,723		497,862
Intrum Justitia AB		46,175		722,947
Loomis AB, B Shares		58,481		841,264
Mekonomen AB		16,053		524,833
				4,347,572
Switzerland | 2.2%
Dufry AG (a)		8,914		820,414
Swissquote Group Holding SA		12,614		443,162
				1,263,576
United Kingdom | 16.6%
Abcam PLC		74,607		422,906
APR Energy PLC (a)		35,015		543,239
Chemring Group PLC		94,620		587,632
Dignity PLC		59,510		758,760
Diploma PLC		120,881		637,713
GlobeOp Financial Services SA		173,793		769,217
IG Group Holdings PLC		156,669		1,160,331
Intertek Group PLC		21,641		683,932
Jupiter Fund Management PLC		186,872		630,051
Melrose PLC		133,887		706,950
Premier Oil PLC (a)		116,430		656,361
Description	Shares		Value
Rightmove PLC		30,880	$	596,581
Synergy Health PLC		44,631		586,726
TalkTalk Telecom Group PLC		296,334		622,660
				9,363,059
Total Common Stocks (Identified cost $49,088,597)				53,571,499
Preferred Stock | 1.1%
Germany | 1.1%
Fuchs Petrolub AG (Identified cost $356,050)		14,212		622,081
Short-Term Investment | 4.3%
State Street Institutional Treasury Money Market Fund (Identified cost $2,413,988)		2,413,988		2,413,988
Total Investments | 100.0%
(Identified cost $51,858,635) (b)			$	56,607,568
Cash and Other Assets in Excess of Liabilities | 0.0%				15,942
Net Assets | 100.0%			$	56,623,510

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

Annual Report  59

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio
Common Stocks | 96.8%
Argentina | 1.4%
YPF Sociedad Anonima Sponsored ADR		5,614,897	$	194,724,628
Brazil | 19.1%
Banco do Brasil SA		36,542,010		464,305,395
CCR SA		19,021,400		124,616,812
Cielo SA		22,147,920		572,325,288
Companhia Siderurgica Nacional SA Sponsored ADR		19,836,024		162,258,676
Natura Cosmeticos SA		9,938,500		193,201,989
Redecard SA		35,071,320		548,844,300
Souza Cruz SA		15,635,925		192,048,809
Vale SA Sponsored ADR		15,880,900		340,645,305
				2,598,246,574
Canada | 1.6%
First Quantum Minerals, Ltd.		10,815,100		212,851,784
China | 2.5%
China Construction Bank Corp., Class H		186,677,220		130,274,577
NetEase.com, Inc. Sponsored ADR (a)		2,106,656		94,483,522
Weichai Power Co., Ltd., Class H		23,707,500		116,605,271
				341,363,370
Egypt | 2.3%
Commercial International Bank Egypt SAE		29,075,818		91,073,615
Eastern Co. SAE		3,383,887		52,042,535
Egyptian Co. for Mobile Services		2,263,475		29,462,801
Orascom Construction Industries		4,318,112		146,783,229
				319,362,180
France | 0.7%
CFAO SA		2,625,650		88,949,158
Hong Kong | 0.8%
Huabao International Holdings, Ltd.		219,747,000		112,609,515
Description	Shares		Value
Hungary | 1.1%
OTP Bank PLC		11,839,894	$	156,471,275
India | 4.8%
Bank of India		16,569,757		82,372,956
Bharat Heavy Electricals, Ltd.		33,889,160		152,263,508
Infosys, Ltd. Sponsored ADR		1,662,308		85,409,385
Jindal Steel & Power, Ltd.		14,990,085		127,827,135
Punjab National Bank, Ltd.		13,971,669		205,608,875
				653,481,859
Indonesia | 6.5%
PT Bank Mandiri Tbk		134,379,930		100,034,687
PT Perusahaan Gas Negara (Persero) Tbk		264,938,500		92,768,650
PT Semen Gresik (Persero) Tbk		137,625,800		173,787,197
PT Tambang Batubara Bukit Asam Tbk		51,824,500		99,162,402
PT Telekomunikasi Indonesia Tbk Sponsored ADR		9,460,549		290,817,276
PT United Tractors Tbk		44,556,984		129,481,834
				886,052,046
Malaysia | 0.7%
British American Tobacco Malaysia Berhad		6,185,100		97,400,692
Mexico | 5.2%
America Movil SAB de CV ADR, Series L		8,637,570		195,209,082
Desarrolladora Homex SAB de CV ADR (a)		2,799,868		47,233,773
Grupo Mexico SAB de CV, Series B		87,558,347		230,210,305
Grupo Televisa SA Sponsored ADR		6,764,100		142,451,946
Kimberly-Clark de Mexico SAB de CV, Series A		17,553,365		95,473,239
				710,578,345
Pakistan | 1.4%
Oil & Gas Development Co., Ltd.		53,654,097		89,817,352
Pakistan Petroleum, Ltd.		53,363,790		99,712,120
				189,529,472
Philippines | 2.4%
Philippine Long Distance Telephone Co. Sponsored ADR		5,710,350		329,030,367

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

60  Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio (concluded)
Russia | 8.5%
Gazprom OAO Sponsored ADR		17,020,331	$	181,436,729
Lukoil OAO Sponsored ADR		2,019,750		107,450,700
Magnit OJSC Sponsored GDR (c), (l)		4,177,365		88,393,043
Mobile TeleSystems OJSC Sponsored ADR		15,671,843		230,062,655
Oriflame Cosmetics SA SDR		2,598,429		82,082,877
Sberbank of Russia (l)		99,381,105		244,872,956
TNK-BP Holding		39,192,194		94,061,266
Uralkali OJSC Sponsored GDR		3,511,389		126,410,004
				1,154,770,230
South Africa | 11.3%
Bidvest Group, Ltd.		9,959,415		190,982,706
Kumba Iron Ore, Ltd.		1,844,491		114,244,631
Massmart Holdings, Ltd.		3,067,251		64,217,142
Murray & Roberts Holdings, Ltd. (a)		28,392,426		90,215,078
Nedbank Group, Ltd.		7,470,746		134,190,333
Pretoria Portland Cement Co., Ltd.		31,726,033		107,645,793
Sanlam, Ltd.		30,616,367		109,417,989
Shoprite Holdings, Ltd.		16,152,226		272,520,230
Standard Bank Group, Ltd.		9,388,429		114,846,903
Tiger Brands, Ltd.		5,572,908		173,195,726
Truworths International, Ltd.		17,979,881		164,485,102
				1,535,961,633
South Korea | 13.7%
Hite Jinro Co., Ltd.		2,273,938		49,643,699
Hyundai Mobis		473,327		119,975,247
KB Financial Group, Inc.		5,236,930		165,017,846
Korea Life Insurance Co., Ltd.		31,549,543		202,661,995
KT&G Corp.		4,586,170		324,057,498
NHN Corp. (a)		987,221		180,819,124
Samsung Electronics Co., Ltd.		360,629		331,202,675
Shinhan Financial Group Co., Ltd.		9,724,814		335,556,733
Woongjin Coway Co., Ltd.		4,956,534		157,473,216
				1,866,408,033
Taiwan | 4.5%
Hon Hai Precision Industry Co., Ltd.		44,169,199		120,929,575
HTC Corp.		9,255,935		151,927,068
MediaTek, Inc.		11,543,421		105,792,771
Taiwan Semiconductor Manufacturing Co., Ltd.		93,690,284		234,542,869
				613,192,283
Description	Shares		Value
Thailand | 3.4%
Banpu Public Co. Ltd.		8,514,500	$	147,350,777
CP All Public Co. Ltd. (l)		67,141,900		110,129,741
Kasikornbank Public Co. Ltd.		20,405,500		80,522,496
PTT Exploration & Production Public Co. Ltd. (l)		3,487,250		18,624,457
The Siam Cement Public Co. Ltd.		9,583,700		111,176,995
				467,804,466
Turkey | 4.9%
Akbank TAS		33,481,206		106,432,665
Koc Holding AS		39,320,118		117,934,400
Turkcell Iletisim Hizmetleri AS (a)		51,956,159		243,628,088
Turkiye Is Bankasi AS, C Shares		112,294,808		196,275,018
				664,270,171
Total Common Stocks (Identified cost $13,738,636,289)				13,193,058,081
Preferred Stocks | 2.6%
Brazil | 2.6%
CEMIG SA Sponsored ADR		11,386,354		202,563,238
Companhia de Bebidas das Americas SA Sponsored ADR		4,416,248		159,382,390
Total Preferred Stocks
(Identified cost $289,807,812)				361,945,628
Short-Term Investment | 0.0%
State Street Institutional Treasury Money Market Fund (Identified cost $2,812)		2,812		2,812
Total Investments | 99.4%
(Identified cost $14,028,446,913) (b)			$	13,555,006,521
Cash and Other Assets in Excess of Liabilities | 0.6%				79,195,604
Net Assets | 100.0%			$	13,634,202,125

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

Annual Report  61

Description	Shares		Value
Lazard Developing Markets Equity Portfolio
Common Stocks | 92.0%
Brazil | 10.4%
Cia Hering		186,034	$	3,237,455
Cyrela Brazil Realty SA Empreendimentos e Participacoes		483,560		3,847,222
Localiza Rent a Car SA		203,000		2,786,114
MRV Engenharia e Participacoes SA		904,395		5,188,059
Petroleo Brasileiro SA Sponsored ADR		145,100		3,408,399
Totvs SA		134,200		2,392,973
Vale SA Sponsored ADR		109,115		2,340,517
				23,200,739
China | 22.8%
AAC Technologies Holdings, Inc.		1,863,700		4,199,360
Agricultural Bank of China, Ltd., Class H		11,610,500		5,008,006
China Construction Bank Corp., Class H		5,685,849		3,967,927
China Merchants Bank Co., Ltd., Class H		2,015,406		4,074,096
China National Materials Co., Ltd., Class H		9,450,890		3,358,543
China Petroleum & Chemical Corp. ADR		30,535		3,207,702
China State Construction International Holdings, Ltd.		7,348,940		5,242,079
Daphne International Holdings, Ltd.		2,580,000		2,873,458
Geely Automobile Holdings, Ltd.		9,921,700		2,171,721
Hidili Industry International Development, Ltd.		10,215,900		3,025,335
NetEase.com, Inc. Sponsored ADR (a)		63,885		2,865,242
Ping An Insurance (Group) Co. of China, Ltd., Class H		695,500		4,593,921
Sands China, Ltd. (a)		794,400		2,245,137
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H		3,830,400		4,123,058
				50,955,585
Colombia | 1.8%
Pacific Rubiales Energy Corp.		218,535		4,017,826
India | 5.4%
Cairn India, Ltd. (a)		479,167		2,841,346
HDFC Bank, Ltd. Sponsored ADR		67,700		1,779,156
ICICI Bank, Ltd. Sponsored ADR		160,630		4,245,451
Shriram Transport Finance Co., Ltd.		409,114		3,245,255
				12,111,208
Description	Shares		Value
Indonesia | 1.5%
PT Bank Rakyat Indonesia (Persero) Tbk		4,625,600	$	3,443,375
Kazakhstan | 2.8%
Halyk Savings Bank of Kazakhstan JSC GDR (a)		768,570		3,735,250
Zhaikmunai LP GDR (a)		248,798		2,413,341
				6,148,591
Mexico | 3.8%
Corporacion Geo SAB de CV, Series B (a)		4,162,006		5,138,868
Grupo Financiero Banorte SAB de CV, Class O		1,075,657		3,256,717
				8,395,585
Peru | 1.5%
Credicorp, Ltd.		29,500		3,229,365
Philippines | 1.3%
SM Investments Corp.		225,697		2,997,800
Qatar | 1.0%
Qatar Electricity & Water Co.		59,135		2,267,053
Russia | 18.0%
Alliance Oil Co., Ltd. SDR (a)		442,778		5,516,992
Eurasia Drilling Co., Ltd. GDR		109,027		2,562,135
Gazprom OAO Sponsored ADR		209,930		2,242,262
Globaltrans Investment PLC Sponsored GDR		325,107		4,470,221
Rosneft Oil Co. OJSC GDR		550,932		3,636,151
Sberbank of Russia (l)		2,561,840		6,312,320
TMK OAO GDR		387,210		3,484,890
Uralkali OJSC Sponsored GDR		124,132		4,468,752
VTB Bank OJSC GDR		973,581		3,514,627
X5 Retail Group NV GDR (a)		179,237		4,093,773
				40,302,123
South Africa | 8.3%
Barloworld, Ltd.		429,741		3,999,534
Exxaro Resources, Ltd. Sponsored ADR		281,080		5,823,978
Mr Price Group, Ltd.		183,669		1,815,633
MTN Group, Ltd.		184,170		3,279,107
Standard Bank Group, Ltd.		305,782		3,740,574
				18,658,826

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

62  Annual Report

Description	Shares		Value
Lazard Developing Markets Equity Portfolio (concluded)
South Korea | 5.0%
Hyundai Mobis		15,981	$	4,050,739
Samsung Electronics Co., Ltd.		4,186		3,844,434
Samsung Engineering Co., Ltd.		18,433		3,224,175
				11,119,348
Taiwan | 3.8%
Synnex Technology International Corp.		1,675,989		4,046,197
Tripod Technology Corp.		1,112,140		2,681,271
Yuanta Financial Holding Co., Ltd. (a)		3,489,159		1,780,360
				8,507,828
Thailand | 1.3%
PTT Exploration & Production Public Co. Ltd. (l)		558,549		2,983,059
Turkey | 1.6%
Tofas Turk Otomobil Fabrikasi AS		564,391		1,764,327
Turkiye Garanti Bankasi AS ADR		587,040		1,825,695
				3,590,022
United States | 1.7%
NII Holdings, Inc. (a)		182,977		3,897,410
Total Common Stocks
(Identified cost $262,533,116)				205,825,743
Description		Shares		Value
Preferred Stocks | 6.4%
Brazil | 4.6%
Banco Bradesco SA Sponsored ADR		221,533	$	3,695,170
Gerdau SA Sponsored ADR		394,450		3,080,655
Marcopolo SA		931,700		3,541,484
				10,317,309
Colombia | 1.8%
Bancolombia SA Sponsored ADR		68,900		4,103,684
Total Preferred Stocks (Identified cost $16,327,529)				14,420,993
Short-Term Investment | 1.4%
State Street Institutional Treasury Money Market Fund (Identified cost $3,060,182)		3,060,182		3,060,182
Total Investments | 99.8%
(Identified cost $281,920,827) (b)			$	223,306,918
Cash and Other Assets in Excess of Liabilities | 0.2%				549,513
Net Assets | 100.0%			$	223,856,431

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

Annual Report  63

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio
Common Stocks | 90.4%
Argentina | 1.1%
YPF Sociedad Anonima Sponsored ADR		34,775	$	1,205,997
Brazil | 12.8%
Banco do Brasil SA		92,407		1,174,130
Cia Hering		107,927		1,878,199
Cielo SA Sponsored ADR		59,010		1,529,539
Companhia Siderurgica Nacional SA Sponsored ADR		84,945		694,850
Localiza Rent a Car SA		108,700		1,491,875
MRV Engenharia e Participacoes SA		295,100		1,692,840
Natura Cosmeticos SA		44,450		864,097
Petroleo Brasileiro SA Sponsored ADR		76,200		1,789,938
Redecard SA		109,000		1,705,782
Souza Cruz SA		76,195		935,868
				13,757,118
Canada | 0.9%
First Quantum Minerals, Ltd.		48,905		962,499
China | 11.8%
AAC Technologies Holdings, Inc.		653,640		1,472,806
Agricultural Bank of China, Ltd., Class H		4,898,000		2,112,675
China Construction Bank Corp., Class H		1,085,461		757,500
China National Materials Co., Ltd., Class H		3,162,000		1,123,673
China State Construction International Holdings, Ltd.		2,526,504		1,802,183
Daphne International Holdings, Ltd.		1,232,000		1,372,132
Hidili Industry International Development, Ltd.		2,264,360		670,567
Ping An Insurance (Group) Co. of China, Ltd., Class H		315,000		2,080,640
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H		1,165,640		1,254,700
				12,646,876
Colombia | 1.4%
Pacific Rubiales Energy Corp.		81,000		1,489,207
Description	Shares		Value
Egypt | 1.7%
Commercial International Bank Egypt SAE		319,069	$	999,413
Orascom Construction Industries		25,766		875,850
				1,875,263
Hungary | 0.7%
OTP Bank PLC		58,337		770,958
India | 1.3%
ICICI Bank, Ltd. Sponsored ADR		54,290		1,434,885
Indonesia | 3.8%
PT Bank Rakyat Indonesia (Persero) Tbk		2,027,618		1,509,393
PT Telekomunikasi Indonesia Tbk Sponsored ADR		43,950		1,351,023
PT United Tractors Tbk		437,515		1,271,411
				4,131,827
Kazakhstan | 1.2%
Halyk Savings Bank of Kazakhstan JSC GDR (a)		264,744		1,286,656
Mexico | 5.8%
America Movil SAB de CV ADR, Series L		43,508		983,281
Corporacion Geo SAB de CV, Series B (a)		770,000		950,726
Grupo Financiero Banorte SAB de CV, Class O		388,800		1,177,152
Grupo Mexico SAB de CV, Series B		410,501		1,079,298
Grupo Televisa SA Sponsored ADR		46,573		980,827
Kimberly-Clark de Mexico SAB de CV, Series A		190,600		1,036,679
				6,207,963
Philippines | 3.0%
Philippine Long Distance Telephone Co. Sponsored ADR		30,905		1,780,746
SM Investments Corp.		110,638		1,469,539
				3,250,285

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

64Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio (concluded)
Russia | 15.8%
Alliance Oil Co., Ltd. SDR (a)		162,382	$	2,023,272
Eurasia Drilling Co., Ltd. GDR		53,739		1,262,866
Gazprom OAO Sponsored ADR		253,532		2,707,975
Globaltrans Investment PLC Sponsored GDR		123,604		1,699,555
Lukoil OAO Sponsored ADR		18,968		1,009,098
Mobile TeleSystems OJSC Sponsored ADR		89,520		1,314,154
Oriflame Cosmetics SA SDR		24,557		775,741
Sberbank of Russia (l)		669,435		1,649,474
Sberbank of Russia Sponsored ADR (a)		118,872		1,181,588
TMK OAO GDR		106,500		958,500
Uralkali OJSC Sponsored GDR		66,609		2,397,924
				16,980,147
South Africa | 7.0%
Exxaro Resources, Ltd.		93,301		1,941,712
Kumba Iron Ore, Ltd.		2,005		124,186
Standard Bank Group, Ltd.		204,527		2,501,941
Tiger Brands, Ltd.		51,196		1,591,077
Truworths International, Ltd.		152,911		1,398,874
				7,557,790
South Korea | 10.6%
Hyundai Mobis		4,611		1,168,761
Korea Life Insurance Co., Ltd.		165,482		1,062,992
KT&G Corp.		24,194		1,709,541
NHN Corp. (a)		9,253		1,694,777
Samsung Electronics Co., Ltd.		3,270		3,003,177
Samsung Engineering Co., Ltd.		7,090		1,240,135
Shinhan Financial Group Co., Ltd.		43,840		1,512,708
				11,392,091
Taiwan | 5.8%
Hon Hai Precision Industry Co., Ltd.		330,281		904,267
HTC Corp. GDR		14,013		920,039
MediaTek, Inc.		44,000		403,250
Synnex Technology International Corp.		692,190		1,671,095
Taiwan Semiconductor Manufacturing Co., Ltd.		427,000		1,068,945
Tripod Technology Corp.		508,146		1,225,095
				6,192,691
Description	Shares		Value
Thailand | 0.9%
Banpu Public Co. Ltd.		57,730	$	999,068
Turkey | 3.8%
Koc Holding AS ADR		70,598		1,050,498
Tofas Turk Otomobil Fabrikasi AS		327,128		1,022,626
Turkcell Iletisim Hizmetleri AS ADR (a)		92,355		1,086,095
Turkiye Is Bankasi AS, C Shares		549,749		960,881
				4,120,100
United States | 1.0%
NII Holdings, Inc. (a)		50,900		1,084,170
Total Common Stocks (Identified cost $115,188,086)				97,345,591
Preferred Stocks | 5.6%
Brazil | 3.8%
CEMIG SA Sponsored ADR		72,215		1,284,705
Marcopolo SA		367,600		1,397,284
Vale SA Sponsored ADR		66,100		1,361,660
				4,043,649
Colombia | 1.8%
Bancolombia SA Sponsored ADR		32,820		1,954,759
Total Preferred Stocks (Identified cost $6,725,075)				5,998,408
Short-Term Investment | 5.2%
State Street Institutional Treasury Money Market Fund (Identified cost $5,625,563)		5,625,563		5,625,563
Total Investments | 101.2% (Identified cost $127,538,724) (b)			$	108,969,562
Liabilities in Excess of Cash and Other Assets | (1.2)%				(1,307,523	)
Net Assets | 100.0%			$	107,662,039

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

Annual Report  65

Description	Shares		Value
Lazard Emerging Markets Multi-Strategy Portfolio
Common Stocks | 49.5%
Argentina | 0.6%
YPF Sociedad Anonima Sponsored ADR (d)		9,887	$	342,881
Brazil | 6.8%
Banco do Brasil SA		10,090		128,204
Banco do Brasil SA Sponsored ADR (d)		17,160		216,216
Cia Hering		30,800		535,997
Cielo SA Sponsored ADR (d)		17,390		450,749
Companhia Siderurgica Nacional SA Sponsored ADR		25,130		205,563
Localiza Rent a Car SA		30,900		424,093
MRV Engenharia e Participacoes SA		83,900		481,292
Natura Cosmeticos SA		12,440		241,831
Petroleo Brasileiro SA Sponsored ADR (d)		21,800		512,082
Redecard SA		11,860		185,602
Redecard SA Sponsored GDR (c), (d)		7,273		227,636
Souza Cruz SA		21,980		269,970
				3,879,235
Canada | 0.5%
First Quantum Minerals, Ltd.		14,380		283,013
China | 6.5%
AAC Technologies Holdings, Inc.		196,000		441,634
Agricultural Bank of China, Ltd., Class H		1,468,000		633,199
China Construction Bank Corp., Class H		318,000		221,919
China National Materials Co., Ltd., Class H		914,000		324,806
China State Construction International Holdings, Ltd.		739,600		527,565
Daphne International Holdings, Ltd.		352,000		392,038
Hidili Industry International Development, Ltd.		656,000		194,268
Ping An Insurance (Group) Co. of China, Ltd., Class H		89,500		591,166
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H		336,580		362,296
				3,688,891
Colombia | 0.8%
Pacific Rubiales Energy Corp.		23,100		424,700
Description	Shares		Value
Egypt | 0.9%
Commercial International Bank Egypt SAE		67,959	$	212,867
Commercial International Bank Egypt SAE GDR		23,973		72,159
Orascom Construction Industries		5,242		178,188
Orascom Construction Industries, Sponsored ADR		2,000		65,200
				528,414
Hungary | 0.4%
OTP Bank PLC		18,673		246,775
India | 0.7%
ICICI Bank, Ltd. Sponsored ADR (d)		15,200		401,736
Indonesia | 2.1%
PT Bank Rakyat Indonesia (Persero) Tbk		576,000		428,784
PT Telekomunikasi Indonesia Tbk Sponsored ADR (d)		12,950		398,083
PT United Tractors Tbk		124,515		361,839
				1,188,706
Kazakhstan | 0.7%
Halyk Savings Bank of Kazakhstan JSC GDR (a), (d)		82,234		399,657
Mexico | 3.2%
America Movil SAB de CV ADR, Series L		12,590		284,534
Corporacion Geo SAB de CV, Series B (a)		215,400		265,956
Grupo Financiero Banorte SAB de CV, Class O		111,100		336,372
Grupo Mexico SAB de CV, Series B		120,909		317,897
Grupo Televisa SA Sponsored ADR		13,592		286,248
Kimberly-Clark de Mexico SAB de CV, Series A		55,875		303,906
				1,794,913
Philippines | 1.7%
Philippine Long Distance Telephone Co. Sponsored ADR (d)		9,037		520,712
SM Investments Corp.		31,360		416,536
				937,248

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

66  Annual Report

Description	Shares		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Russia | 8.6%
Alliance Oil Co., Ltd. SDR (a)		46,290	$	576,771
Eurasia Drilling Co., Ltd. GDR		15,213		357,506
Gazprom OAO Sponsored ADR (d)		72,394		773,240
Globaltrans Investment PLC Sponsored GDR		35,265		484,894
Lukoil OAO Sponsored ADR		5,585		297,122
Mobile TeleSystems OJSC Sponsored ADR (d)		26,260		385,497
Oriflame Cosmetics SA SDR		6,812		215,187
Sberbank of Russia (l)		190,416		469,181
Sberbank of Russia Sponsored ADR (a), (d)		35,152		349,411
TMK OAO GDR		30,262		272,358
Uralkali OJSC Sponsored GDR		19,805		712,980
				4,894,147
South Africa | 3.9%
Exxaro Resources, Ltd.		27,005		562,008
Kumba Iron Ore, Ltd.		720		44,596
Standard Bank Group, Ltd.		58,689		717,932
Tiger Brands, Ltd.		15,039		467,384
Truworths International, Ltd.		44,928		411,014
				2,202,934
South Korea | 5.8%
Hyundai Mobis		1,377		349,031
Korea Life Insurance Co., Ltd.		48,020		308,462
KT&G Corp.		2,611		184,492
KT&G Corp. GDR (c), (d)		9,033		319,135
NHN Corp. (a)		2,669		488,853
Samsung Electronics Co., Ltd.		671		616,248
Samsung Electronics Co., Ltd. GDR		541		249,239
Samsung Engineering Co., Ltd.		2,024		354,024
Shinhan Financial Group Co., Ltd.		4,730		163,210
Shinhan Financial Group Co., Ltd. ADR		4,046		275,978
				3,308,672
Description	Shares		Value
Taiwan | 3.2%
Hon Hai Precision Industry Co., Ltd. GDR (d)		48,403	$	266,214
HTC Corp. GDR		4,066		266,958
MediaTek, Inc.		13,000		119,142
Synnex Technology International Corp.		198,000		478,014
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		23,356		301,526
Tripod Technology Corp.		146,060		352,138
				1,783,992
Thailand | 0.5%
Banpu Public Co. Ltd.		16,600		287,277
Turkey | 2.1%
Koc Holding AS ADR		20,585		306,305
Tofas Turk Otomobil Fabrikasi AS		92,454		289,018
Turkcell Iletisim Hizmetleri AS ADR (a)		26,890		316,226
Turkiye Is Bankasi AS, C Shares		161,006		281,415
				1,192,964
United States | 0.5%
NII Holdings, Inc. (a)		14,200		302,460
Total Common Stocks (Identified cost $31,857,341)				28,088,615
Preferred Stocks | 3.0%
Brazil | 2.0%
CEMIG SA Sponsored ADR (d)		20,711		368,448
Marcopolo SA		103,500		393,414
Vale SA Sponsored ADR (d)		19,400		399,640
				1,161,502
Colombia | 1.0%
Bancolombia SA Sponsored ADR (d)		9,380		558,673
Total Preferred Stocks (Identified cost $1,879,111)				1,720,175

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

Annual Report  67

Description	Principal Amount (000) (e)		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Corporate Bonds | 5.0%
Argentina | 0.1%
Pan American Energy LLC, 7.875%, 05/07/21		70	$	70,350
Brazil | 0.3%
Odebrecht Finance, Ltd., 7.000%, 04/21/20		175		187,250
China | 0.2%
Lumena Resources Corp., 12.000%, 10/27/14		100		86,179
Colombia | 0.4%
Pacific Rubiales Energy Corp., 7.250%, 12/12/21 (c)		215		216,075
Costa Rica | 0.4%
Instituto Costarricense de Electricidad, 6.950%, 11/10/21 (c)		200		203,000
Indonesia | 0.7%
Altus Capital Pte., Ltd., 12.875%, 02/10/15		100		97,682
Bumi Investment Pte., Ltd., 10.750%, 10/06/17		100		100,000
PT Pertamina (Persero) Tbk, 6.500%, 05/27/41		200		207,000
				404,682
Ireland | 0.4%
Novatek Finance, Ltd., 6.604%, 02/03/21		225		227,250
Russia | 2.0%
Alfa-Bank, 7.875%, 09/25/17		200		189,000
ALROSA Finance SA, 7.750%, 11/03/20		200		199,000
Lukoil International Finance BV, 7.250%, 11/05/19		150		154,875
Metalloinvest Finance, Ltd., 6.500%, 07/21/16		200		179,000
Description	Principal Amount (000) (e)		Value
MTS International Funding, Ltd., 8.625%, 06/22/20		125	$	134,219
Russian Standard Bank, 7.730%, 12/16/15		200		177,000
TNK-BP Finance SA, 7.875%, 03/13/18		100		106,875
				1,139,969
Ukraine | 0.3%
Ferrexpo Finance PLC, 7.875%, 04/07/16		200		173,000
United Arab Emirates | 0.2%
DP World, Ltd., 6.850%, 07/02/37		150		135,750
Total Corporate Bonds (Identified cost $2,936,073)				2,843,505
Foreign Government Obligations | 17.8%
Argentina | 0.3%
Republic of Argentina:
8.280%, 12/31/33		191		139,434
2.500%, 12/31/38 (f)		150		52,875
				192,309
Belize | 0.2%
Government of Belize, 6.000%, 02/20/29 (f)		155		93,000
Dominican Republic | 0.4%
Dominican Republic:
14.000%, 02/10/12 (g)		2,000		51,793
9.040%, 01/23/18		71		77,438
7.500%, 05/06/21		125		122,500
				251,731
Gambia | 0.2%
Gabonese Republic, 8.200%, 12/12/17		100		114,000
Ghana | 0.2%
Republic of Ghana, 8.500%, 10/04/17		100		109,500
Indonesia | 1.1%
Republic of Indonesia:
6.875%, 01/17/18		300		353,250
6.625%, 02/17/37		200		242,000
				595,250

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

68  Annual Report

Description	Principal Amount (000) (e)		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Iraq | 0.7%
Republic of Iraq, 5.800%, 01/15/28		500	$	410,000
Israel | 0.8%
Israel Fixed Bonds:
4.000%, 03/30/12 (g)		693		187,897
5.000%, 03/31/13 (g)		545		152,417
4.250%, 08/31/16 (g)		400		110,029
Israel Government Bond - Shahar, 10.000%, 05/31/12 (g)		82		23,423
				473,766
Malaysia | 1.4%
Bank Negara Monetary Notes:
0.000%, 02/21/12 (g)		450		141,418
0.000%, 03/01/12 (g)		2,100		659,546
				800,964
Mexico | 4.1%
Mexican Bonos:
7.500%, 06/21/12 (g)		800		58,093
9.000%, 06/20/13 (g)		2,750		208,626
9.500%, 12/18/14 (g)		2,600		208,396
8.000%, 12/17/15 (g)		700		54,769
7.250%, 12/15/16 (g)		3,500		268,478
Mexican Cetes:
0.000%, 03/08/12 (g)		87,500		621,793
0.000%, 05/03/12 (g)		37,000		261,055
0.000%, 06/14/12 (g)		18,400		129,020
0.000%, 08/23/12 (g)		77,000		534,956
				2,345,186
Namibia | 0.4%
Namibia International Bond, 5.500%, 11/03/21 (c)		200		204,000
Nigeria | 0.4%
Republic of Nigeria, 6.750%, 01/28/21		200		208,000
Peru | 1.4%
Republic of Peru:
7.350%, 07/21/25		375		496,875
6.550%, 03/14/37		230		292,100
				788,975
Description	Principal Amount (000) (e)		Value
Poland | 0.5%
Poland Government Bonds:
0.000%, 01/25/12 (g)		231	$	66,774
0.000%, 10/25/12 (g)		725		202,628
3.000%, 08/24/16 (g)		58		17,100
				286,502
Qatar | 0.6%
State of Qatar, 4.500%, 01/20/22 (c)		325		334,750
Romania | 0.4%
Romania Treasury Bills:
0.000%, 02/08/12 (g)		260		77,322
0.000%, 04/04/12 (g)		210		61,819
0.000%, 06/06/12 (g)		360		104,780
				243,921
Russia | 0.3%
Russia Eurobond, 7.850%, 03/10/18 (g)		5,000		157,589
South Africa | 2.0%
Republic of South Africa:
13.500%, 09/15/15 (g)		922		139,079
8.250%, 09/15/17 (g)		4,561		587,545
7.250%, 01/15/20 (g)		3,433		408,895
				1,135,519
Turkey | 1.7%
Turkey Government Bonds:
0.000%, 11/07/12 (g)		327		157,072
0.000%, 02/20/13 (g)		222		103,957
0.000%, 05/15/13 (g)		190		86,936
0.000%, 07/17/13 (g)		678		302,047
9.000%, 05/21/14 (g)		45		26,860
4.500%, 02/11/15 (g)		328		179,306
4.000%, 04/29/15 (g)		186		100,414
				956,592
Venezuela | 0.7%
Republic of Venezuela:
7.000%, 12/01/18		200		141,250
12.750%, 08/23/22		155		139,887
7.000%, 03/31/38		225		129,938
				411,075
Total Foreign Government Obligations (Identified cost $10,504,056)				10,112,629

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

Annual Report  69

Description	Principal Amount (000) (e)		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Quasi Bonds | 1.1%
Colombia | 0.1%
Empresas Publicas de Medellin, 8.375%, 02/01/21 (g)		100,000	$	54,130
Russia | 0.3%
Gaz Capital SA, 9.250%, 04/23/19		150		178,335
Venezuela | 0.7%
Petroleos de Venezuela SA:
4.900%, 10/28/14		45		35,213
5.250%, 04/12/17		50		31,750
8.500%, 11/02/17		225		169,650
5.375%, 04/12/27		325		160,062
				396,675
Total Quasi Bonds (Identified cost $619,666)				629,140
Supranationals | 0.3%
Indonesia | 0.3%
European Bank for Reconstruction & Development,
7.200%, 06/08/16 (g)		560,000		62,451
Export-Import Bank of Korea:
8.300%, 03/15/14 (g)		430,000		47,071
8.400%, 07/06/16 (g)		850,000		92,607
Total Supranationals (Identified cost $217,114)				202,129
Description	Shares		Value
Short-Term Investment | 21.9%
State Street Institutional Treasury Money Market Fund (Identified cost $12,413,482)		12,413,482	$	12,413,482
Total Investments | 98.6% (Identified cost $60,426,843) (b)				56,009,675
Description	Number of Contracts		Value
Purchased Options | 0.0%
AUD vs USD January 12 1.01 Put, Expires 01/13/12		3,700	$	2,422
USD vs BRL February 12 1.78 Put, Expires 02/02/12		10,000		1,700
USD vs MXN February 12 13.50 Put, Expires 02/02/12		13,000		6,240
Total Purchased Options (Identified cost $65,019)				10,362
Total Investments and Purchased Options | 98.6% (Identified cost $60,491,862)			$	56,020,037
Cash and Other Assets in Excess of Liabilities | 1.4%				769,123
Net Assets | 100.0%			$	56,789,160

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

70  Annual Report

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2011:

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
BRL		BRC		01/04/12		361,600	$	200,000	$	193,861	$	—	$	6,139
BRL		BRC		01/04/12		634,290		340,504		340,057		—		447
BRL		UBS		01/04/12		858,585		455,000		460,306		5,306		—
BRL		HSB		01/17/12		243,359		129,000		130,071		1,071		—
BRL		BRC		02/02/12		995,890		532,007		530,295		—		1,712
BRL		HSB		02/02/12		851,996		459,000		453,674		—		5,326
BRL		UBS		02/02/12		352,124		188,000		187,500		—		500
CLP		JPM		01/17/12		95,921,650		187,000		184,304		—		2,696
CLP		JPM		01/17/12		129,270,900		258,000		248,381		—		9,619
CLP		BNP		02/13/12		11,563,200		24,000		22,140		—		1,860
CNY		HSB		06/13/12		1,497,890		235,000		237,454		2,454		—
CNY		JPM		06/13/12		1,188,540		186,000		188,414		2,414		—
CNY		BRC		08/13/12		1,080,924		169,000		171,248		2,248		—
CNY		JPM		09/24/12		1,350,420		213,000		213,870		870		—
COP		CIT		01/10/12		257,146,000		132,481		132,770		289		—
EUR		CIT		01/03/12		104,000		140,525		134,602		—		5,923
EUR		ING		01/03/12		154,000		205,390		199,315		—		6,075
EUR		JPM		01/03/12		162,580		210,760		210,419		—		341
EUR		UBS		01/09/12		48,976		64,000		63,389		—		611
EUR		UBS		01/09/12		86,882		119,000		112,451		—		6,549
EUR		BNP		01/23/12		159,512		207,320		206,473		—		847
EUR		BRC		01/30/12		134,696		173,925		174,357		432		—
EUR		ING		02/03/12		51,000		65,991		66,018		27		—
EUR		CIT		02/14/12		62,267		83,000		80,612		—		2,388
EUR		JPM		02/14/12		9,538		12,379		12,347		—		32
GHS		BRC		01/17/12		76,875		46,422		46,751		329		—
IDR		JPM		01/19/12		129,150,000		14,000		14,223		223		—
IDR		BRC		02/14/12		2,286,610,000		251,000		251,148		148		—
ILS		CIT		01/09/12		93,730		25,000		24,592		—		408
INR		BRC		01/13/12		6,138,930		123,000		115,389		—		7,611
INR		BRC		03/27/12		18,380,580		339,000		340,759		1,759		—
INR		JPM		05/25/12		1,908,000		40,000		35,055		—		4,945
INR		UBS		05/25/12		4,263,990		89,000		78,341		—		10,659
INR		BRC		11/15/12		11,479,620		222,000		206,645		—		15,355
JPY		HSB		02/21/12		26,437,254		339,673		343,739		4,066		—
KRW		JPM		01/12/12		170,085,000		150,000		147,561		—		2,439
KRW		BRC		01/13/12		148,330,000		130,000		128,678		—		1,322
KRW		SCB		01/13/12		472,687,600		412,000		410,062		—		1,938
MXN		UBS		01/06/12		1,434,426		102,000		102,775		775		—
MYR		BRC		01/03/12		412,781		131,000		130,215		—		785
MYR		SCB		01/03/12		412,781		129,952		130,214		262		—

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

Annual Report  71

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2011 (continued):

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 (concluded)
MYR		SCB		01/31/12		1,644,732	$	517,000	$	517,907	$	907	$	—
PEN		RBC		01/17/12		381,828		141,000		141,448		448		—
PHP		JPM		01/24/12		5,691,400		130,000		129,670		—		330
PLN		CIT		01/03/12		1,155,000		381,515		334,705		—		46,810
PLN		ING		01/03/12		7,148		2,103		2,071		—		32
PLN		JPM		01/03/12		722,666		238,708		209,419		—		29,289
PLN		JPM		02/03/12		41,899		12,328		12,109		—		219
PLN		JPM		02/03/12		717,899		211,147		207,484		—		3,663
PLN		CIT		02/14/12		910,106		268,381		262,750		—		5,631
RON		BRC		01/23/12		258,000		78,194		76,999		—		1,195
RON		BRC		01/23/12		526,027		158,636		156,991		—		1,645
RUB		CSF		01/11/12		2,868,775		86,998		89,081		2,083		—
RUB		BRC		01/13/12		5,496,695		174,000		170,638		—		3,362
RUB		UBS		04/06/12		4,169,500		124,000		127,887		3,887		—
SGD		BRC		01/17/12		439,789		341,340		339,055		—		2,285
SGD		HSB		02/13/12		145,264		112,000		111,984		—		16
SGD		SCB		03/22/12		100,972		77,343		77,847		504		—
THB		HSB		01/06/12		2,414,880		78,000		76,531		—		1,469
THB		SCB		01/25/12		11,289,600		360,000		357,306		—		2,694
TRY		BRC		01/06/12		255,987		135,000		135,077		77		—
TRY		BRC		03/29/12		296,408		158,000		153,483		—		4,517
ZAR		CIT		01/19/12		240,628		29,000		29,735		735		—
ZAR		JPM		01/30/12		1,193,125		145,948		147,176		1,228		—
ZAR		JPM		06/29/12		940,084		114,345		113,507		—		838
Total Forward Currency Purchase Contracts							$	11,609,315	$	11,441,335	$	32,542	$	200,522
Forward Currency Sale Contracts
AUD		BRC		01/30/12		344,016	$	348,299	$	350,823	$	—	$	2,524
BRL		BRC		01/04/12		995,890		535,569		533,918		1,651		—
BRL		HSB		01/04/12		858,585		465,737		460,306		5,431		—
CNY		JPM		06/13/12		874,197		137,000		138,583		—		1,583
CZK		BRC		01/23/12		4,295,000		220,970		217,419		3,551		—
EUR		CIT		01/03/12		265,030		381,516		343,015		38,501		—
EUR		ING		01/03/12		1,629		2,103		2,108		—		5
EUR		JPM		01/03/12		165,776		238,708		214,555		24,153		—
EUR		UBS		01/09/12		35,637		48,000		46,125		1,875		—
EUR		UBS		01/09/12		42,018		56,000		54,383		1,617		—
EUR		BRC		01/23/12		59,706		78,194		77,283		911		—
EUR		BRC		01/23/12		122,000		158,636		157,917		719		—
EUR		CSF		01/23/12		151,311		197,489		195,858		1,631		—
EUR		HSB		01/23/12		45,193		61,220		58,498		2,722		—
EUR		BRC		01/30/12		51,703		67,500		66,927		573		—

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

72  Annual Report

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2011 (concluded):

Forward Currency Contracts	Counterparty		Expiration Date		Foreign Currency		U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Sale Contracts (concluded)
EUR		ING		01/30/12		355,469	$	480,359	$	460,138	$	20,221	$	—
EUR		JPM		02/03/12		9,509		12,328		12,310		18		—
EUR		JPM		02/03/12		161,000		211,146		208,412		2,734		—
EUR		CIT		02/14/12		36,717		50,000		47,535		2,465		—
EUR		HSB		02/16/12		196,000		255,020		253,751		1,269		—
EUR		HSB		03/06/12		440,000		593,090		569,759		23,331		—
ILS		BRC		01/09/12		219,339		58,000		57,548		452		—
ILS		BRC		01/09/12		275,991		73,000		72,412		588		—
ILS		CIT		02/15/12		415,600		109,991		108,961		1,030		—
JPY		SCB		01/23/12		14,505,750		186,329		188,509		—		2,180
JPY		JPM		01/31/12		32,362,330		427,000		420,613		6,387		—
MXN		JPM		01/13/12		4,780,602		349,000		342,333		6,667		—
MXN		BRC		01/17/12		2,240,000		161,646		160,352		1,294		—
MXN		HSB		03/13/12		2,052,028		148,892		146,233		2,659		—
MYR		BRC		01/03/12		412,781		129,953		130,215		—		262
MYR		SCB		01/03/12		412,781		130,010		130,215		—		205
PLN		CIT		01/03/12		469,487		140,525		136,052		4,473		—
PLN		ING		01/03/12		692,661		205,390		200,725		4,665		—
PLN		JPM		01/03/12		722,666		210,760		209,420		1,340		—
PLN		ING		02/03/12		224,484		65,991		64,879		1,112		—
RUB		UBS		01/11/12		2,868,775		88,871		89,081		—		210
RUB		UBS		01/13/12		1,743,120		53,983		54,113		—		130
THB		HSB		01/06/12		4,228,505		137,000		134,007		2,993		—
THB		JPM		01/17/12		5,433,296		173,327		172,055		1,272		—
TRY		BRC		03/29/12		36,660		19,349		18,983		366		—
TRY		BRC		03/29/12		259,748		139,182		134,500		4,682		—
TRY		CIT		09/28/12		177,318		91,552		88,290		3,262		—
TRY		JPM		09/28/12		150,099		77,319		74,737		2,582		—
TRY		JPM		09/28/12		163,608		84,295		81,463		2,832		—
TRY		JPM		12/19/12		704,283		346,000		344,795		1,205		—
ZAR		BRC		01/19/12		1,248,100		148,025		154,233		—		6,208
ZAR		CIT		06/29/12		927,500		114,550		111,986		2,564		—
ZAR		CIT		10/29/12		1,054,724		128,382		125,373		3,009		—
ZAR		CIT		10/29/12		1,287,919		153,460		153,092		368		—
ZAR		CIT		11/08/12		1,049,732		127,198		124,616		2,582		—
Total Forward Currency Sale Contracts							$	8,877,864	$	8,699,414		191,757		13,307
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts											$	224,299	$	213,829

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

Annual Report  73

Lazard Emerging Markets Multi-Strategy Portfolio (concluded)

Written Options open at December 31, 2011:

Description	Number of Contracts		Strike Price	Expiration Date	Premium		Value
USD vs BRL 1.72 Put		10,000	1.72	02/02/12	$	8,775	$	300
USD vs MXN 13.00 Put		13,000	13.00	02/02/12		13,683		1,170
Total Written Options					$	22,458	$	1,470

Credit Default Swap Agreements open at December 31, 2011:

Referenced Obligation	Counterparty	Notional Amount		Expiration Date	Receive (Pay) Rate			Value		Upfront Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
People’s Republic of China	JPM		1,000,000	12/20/16		1.00%		$	21,158	$	(22,555	)	$	1,397
Federative Republic of Brazil	JPM		1,000,000	12/20/16		(1.00%	)		26,815		27,128			(313	)
Federative Republic of Brazil	JPM		500,000	12/20/16		(1.00%	)		13,408		13,890			(482	)
Federative Republic of Brazil	JPM		450,000	12/20/16		(1.00%	)		12,067		12,709			(642	)
										$	31,172		$	(40	)

Interest Rate Swap Agreements open at December 31, 2011:

Currency	Counterparty	Notional Amount		Expiration Date	Receive (Pay) Rate			Variable Rate	Unrealized Appreciation (Depreciation)
HUF	JPM		90,000,000	11/03/21		(7.36	%)	6 Month Budapest Interbank Lending Rate	$	5,633
ZAR	JPM		3,000,000	11/02/16		6.61	%	South Africa Johannesburg Interbank Agreed 3 Month		(2,191	)
MXN	JPM		4,000,000	10/27/16		(5.54	%)	Mexico Interbank TIIE 28 Day		3,639
MXN	JPM		2,000,000	10/28/16		(5.47	%)	Mexico Interbank TIIE 28 Day		2,267
									$	9,348

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

74  Annual Report

Description	Principal Amount (000) (e)		Value
Lazard Emerging Markets Debt Portfolio
Corporate Bonds | 7.8%
Argentina | 0.2%
Pan American Energy LLC, 7.875%, 05/07/21		260	$	261,300
Brazil | 1.2%
Arcos Dorados Holdings, Inc.:
10.250%, 07/13/16 (g)		1,250		686,067
10.250%, 07/13/16 (c), (g)		250		136,711
Odebrecht Finance, Ltd., 7.000%, 04/21/20		450		481,500
				1,304,278
China | 0.1%
Lumena Resources Corp., 12.000%, 10/27/14		100		86,180
Colombia | 0.5%
Pacific Rubiales Energy Corp., 7.250%, 12/12/21 (c)		546		548,730
Costa Rica | 0.7%
Instituto Costarricense de Electricidad, 6.950%, 11/10/21 (c)		700		710,500
Indonesia | 2.3%
Altus Capital Pte., Ltd., 12.875%, 02/10/15		225		219,784
Bumi Investment Pte., Ltd., 10.750%, 10/06/17		570		570,000
PT Pertamina (Persero) Tbk:
5.250%, 05/23/21		900		921,150
6.500%, 05/27/41		725		750,375
				2,461,309
Mexico | 0.3%
TV Azteca SAB de CV, 7.500%, 05/25/18		350		354,165
Description	Principal Amount (000) (e)			Value
Russia | 1.8%
Alfa-Bank, 7.875%, 09/25/17		500	$	472,500
ALROSA Finance SA, 7.750%, 11/03/20		450		447,750
MTS International Funding, Ltd., 8.625%, 06/22/20		575		617,406
Russian Standard Bank, 7.730%, 12/16/15		400		354,000
				1,891,656
Ukraine | 0.3%
Ferrexpo Finance PLC, 7.875%, 04/07/16		400		346,000
United Arab Emirates | 0.4%
DP World, Ltd., 6.850%, 07/02/37		450		407,250
Total Corporate Bonds (Identified cost $8,506,842)				8,371,368
Foreign Government Obligations | 74.1%
Argentina | 1.5%
Republic of Argentina:
8.750%, 06/02/17		300		282,000
8.280%, 12/31/33		1,172		855,836
2.500%, 12/31/38 (f)		1,350		475,875
				1,613,711
Belize | 0.5%
Government of Belize, 6.000%, 02/20/29 (f)		885		531,000
Brazil | 0.5%
Federal Republic of Brazil, 5.625%, 01/07/41		500		580,000
Bulgaria | 0.2%
Republic of Bulgaria, 8.250%, 01/15/15		225		251,437

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

Annual Report  75

Description	Principal Amount (000) (e)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Colombia | 3.6%
Republic of Colombia:
12.000%, 10/22/15 (g)		1,950,000	$	1,290,209
7.750%, 04/14/21 (g)		85,000		52,421
4.375%, 07/12/21		1,475		1,585,625
9.850%, 06/28/27 (g)		160,000		116,197
6.125%, 01/18/41		650		802,750
				3,847,202
Dominican Republic | 1.4%
Dominican Republic:
14.000%, 02/10/12 (g)		3,500		90,638
7.500%, 05/06/21 (d)		1,450		1,421,000
				1,511,638
Gambia | 1.1%
Gabonese Republic, 8.200%, 12/12/17		1,000		1,140,000
Ghana | 0.1%
Republic of Ghana, 8.500%, 10/04/17		150		164,250
Hungary | 1.2%
Hungary Government Bonds:
6.000%, 10/24/12 (g)		37,500		151,352
5.500%, 02/12/14 (g)		35,000		133,782
6.750%, 08/22/14 (g)		24,000		93,072
Republic of Hungary:
4.750%, 02/03/15		250		227,500
6.250%, 01/29/20		200		180,000
6.375%, 03/29/21		500		447,500
7.625%, 03/29/41		64		56,320
				1,289,526
Indonesia | 6.7%
Indonesia Government:
8.375%, 09/15/26 (g)		6,405,000		818,437
7.000%, 05/15/27 (g)		10,000,000		1,113,627
8.250%, 06/15/32 (g)		7,500,000		928,585
Republic of Indonesia:
6.875%, 01/17/18 (d)		2,125		2,502,187
6.625%, 02/17/37		1,450		1,754,500
				7,117,336
Iraq | 2.1%
Republic of Iraq, 5.800%, 01/15/28 (d)		2,775		2,275,500
Description	Principal Amount (000) (e)		Value
Israel | 0.9%
Israel Fixed Bond, 4.250%, 08/31/16 (g)		3,600	$	990,260
Ivory Coast | 0.2%
Ivory Coast, 3.750%, 12/31/32 (f), (h)		450		225,000
Malaysia | 5.3%
Bank Negara Monetary Notes, 0.000%, 01/03/12 (g)		5,000		1,577,287
Malaysia Government:
3.702%, 02/25/13 (g)		300		95,477
3.434%, 08/15/14 (g)		760		242,122
3.835%, 08/12/15 (g)		1,500		484,050
4.262%, 09/15/16 (g)		3,000		984,918
3.580%, 09/28/18 (g)		6,700		2,124,137
4.378%, 11/29/19 (g)		600		199,614
				5,707,605
Mexico | 9.0%
Mexican Bonos:
9.000%, 06/20/13 (g)		7,080		537,117
8.000%, 12/19/13 (g)		1,000		75,764
8.000%, 12/17/15 (g)		4,100		320,788
7.250%, 12/15/16 (g)		7,400		567,638
8.500%, 12/13/18 (g)		12,000		985,768
8.000%, 06/11/20 (g)		10,710		850,771
6.500%, 06/10/21 (g)		1,000		71,557
7.500%, 06/03/27 (g)		640		47,430
8.500%, 05/31/29 (g)		9,100		722,291
7.750%, 05/29/31 (g)		9,400		691,782
10.000%, 11/20/36 (g)		7,620		676,316
Mexican Cetes:
0.000%, 04/04/12 (g)		5,000		35,390
0.000%, 04/19/12 (g)		31,250		220,737
0.000%, 09/20/12 (g)		205,000		1,421,016
United Mexican States:
5.950%, 03/19/19		850		1,010,225
5.125%, 01/15/20		250		285,625
5.750%, 10/12/10		1,000		1,065,000
				9,585,215
Namibia | 1.0%
Namibia International Bond, 5.500%, 11/03/21 (c)		1,000		1,020,000

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

76  Annual Report

Description	Principal Amount (000) (e)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Nigeria | 1.0%
Republic of Nigeria, 6.750%, 01/28/21		1,025	$	1,066,000
Pakistan | 0.1%
Republic of Pakistan, 6.875%, 06/01/17		100		72,000
Peru | 4.4%
Republic of Peru:
9.910%, 05/05/15 (g)		230		99,412
7.125%, 03/30/19		135		169,762
7.840%, 08/12/20 (g)		960		405,931
7.350%, 07/21/25		1,000		1,325,000
8.200%, 08/12/26 (g)		270		119,505
6.550%, 03/14/37 (d)		1,850		2,349,500
5.625%, 11/18/50		195		214,500
				4,683,610
Philippines | 2.0%
Republic of Philippines:
4.950%, 01/15/21 (g)		39,000		902,634
7.500%, 09/25/24		950		1,206,500
				2,109,134
Poland | 4.8%
Poland Government Bonds:
4.750%, 04/25/12 (g)		15		4,351
0.000%, 10/25/12 (g)		1,950		545,001
0.000%, 01/25/14 (g)		7,250		1,908,724
5.500%, 04/25/15 (g)		400		117,480
5.250%, 10/25/17 (g)		4,125		1,181,867
5.500%, 10/25/19 (g)		4,877		1,396,880
				5,154,303
Qatar | 2.1%
State of Qatar:
4.500%, 01/20/22 (c)		1,825		1,879,750
5.750%, 01/20/42 (c)		300		323,250
				2,203,000
Russia | 4.2%
Russia Eurobonds:
7.850%, 03/10/18 (g)		55,000		1,733,480
7.850%, 03/10/18 (c), (g)		5,000		157,589
7.500%, 03/31/30 (d)		2,263		2,627,735
				4,518,804
Description	Principal Amount (000) (e)			Value
South Africa | 5.5%
Republic of South Africa:
13.500%, 09/15/15 (g)		11,450	$	1,727,170
8.250%, 09/15/17 (g)		19,440		2,504,247
10.500%, 12/21/26 (g)		4,685		678,617
7.000%, 02/28/31 (g)		9,600		983,124
				5,893,158
Sri Lanka | 0.4%
Republic of Sri Lanka, 6.250%, 10/04/20		450		450,000
Thailand | 3.5%
Bank of Thailand:
0.000%, 01/26/12 (g)		4,300		136,044
0.000%, 02/09/12 (g)		25,000		789,442
0.000%, 03/22/12 (g)		30,000		944,562
0.000%, 05/03/12 (g)		33,000		1,035,340
1.650%, 05/21/12 (g)		3,000		94,556
2.480%, 08/19/12 (g)		137		4,324
2.350%, 10/21/12 (g)		11,700		368,582
Thailand Government:
4.250%, 03/13/13 (g)		4,000		128,426
1.200%, 07/14/21 (g)		6,048		198,780
				3,700,056
Turkey | 6.6%
Republic of Turkey, 6.875%, 03/17/36		550		573,375
Turkey Government Bonds:
0.000%, 01/25/12 (g)		150		78,799
0.000%, 04/25/12 (g)		400		204,154
0.000%, 08/08/12 (g)		1,300		643,568
0.000%, 11/07/12 (g)		570		274,214
0.000%, 02/20/13 (g)		3,245		1,517,692
0.000%, 05/15/13 (g)		3,200		1,464,185
0.000%, 07/17/13 (g)		2,950		1,314,216
4.500%, 02/11/15 (g)		1,725		943,714
				7,013,917
Ukraine | 0.9%
Ukraine Government:
6.875%, 09/23/15		750		675,000
6.250%, 06/17/16		200		175,500
7.750%, 09/23/20		190		164,350
				1,014,850

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

Annual Report  77

Description	Principal Amount (000) (e)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Uruguay | 0.2%
Republic Orient Uruguay, 4.375%, 12/15/28 (g)		4,200	$	209,683
Venezuela | 3.1%
Republic of Venezuela:
5.750%, 02/26/16		325		254,313
7.000%, 12/01/18		225		158,906
7.750%, 10/13/19		875		625,625
12.750%, 08/23/22		230		207,575
9.000%, 05/07/23		30		21,450
8.250%, 10/13/24		635		417,513
7.650%, 04/21/25		1,500		930,000
7.000%, 03/31/38		1,205		695,887
				3,311,269
Total Foreign Government Obligations (Identified cost $79,700,675)				79,249,464
Quasi Bonds | 7.2%
Colombia | 0.2%
Emgesa SA, 8.750%, 01/25/21 (c), (g)		150,000		83,044
Empresas Publicas de Medellin, 8.375%, 02/01/21 (c), (g)		150,000		81,194
8.375%, 02/01/21 (g)		160,000		86,607
				250,845
Kazakhstan | 1.6%
Development Bank of Kazakhstan JSC, 5.500%, 12/20/15		1,675		1,658,250
Mexico | 1.0%
Pemex Project Funding Master Trust, 6.625%, 06/15/35		425		481,844
Petroleos Mexicanos, 5.500%, 01/21/21		550		596,750
				1,078,594
Russia | 2.0%
Gaz Capital SA:
9.250%, 04/23/19		100		118,890
6.510%, 03/07/22		300		304,500
Description	Principal Amount (000) (e)		Value
Russian Agricultural Bank OJSC:
7.500%, 03/25/13		31,500	$	973,249
8.700%, 03/17/16		15,000		451,807
Vnesheconombank:
6.902%, 07/09/20		100		102,500
6.800%, 11/22/25		225		218,250
				2,169,196
South Africa | 0.4%
Transnet, Ltd., 10.500%, 09/17/20 (g)		3,000		402,947
Venezuela | 2.0%
Petroleos de Venezuela SA:
4.900%, 10/28/14		170		133,025
5.250%, 04/12/17		515		327,025
8.500%, 11/02/17		810		610,740
12.750%, 02/17/22		65		54,437
5.375%, 04/12/27		1,950		960,375
5.500%, 04/12/37		55		26,400
				2,112,002
Total Quasi Bonds (Identified cost $7,675,966)				7,671,834
Supranationals | 0.2%
Indonesia | 0.2%
European Bank for Reconstruction & Development, 7.200%, 06/08/16 (g)		1,500,000		167,279
Export-Import Bank of Korea, 6.600%, 11/04/13 (g)		700,000		74,705
				241,984
Total Supranationals (Identified cost $254,163)				241,984
Description	Shares		Value
Short-Term Investment | 9.0%
State Street Institutional Treasury Money Market Fund (Identified cost $9,595,503)		9,595,503	$	9,595,503
Total Investments | 98.3% (Identified cost $105,733,149) (b)				105,130,153

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

78  Annual Report

Description	Number of Contracts		Value
Lazard Emerging Markets Debt Portfolio (continued)
Purchased Options | 0.0%
AUD vs USD January 12 1.01 Put, Expires 01/13/12		23,800	$	15,579
USD vs BRL February 12 1.78 Put, Expires 02/02/12		30,000		5,100
USD vs MXN February 12 13.50 Put, Expires 02/02/12		44,000		21,120
Total Purchased Options (Identified cost $244,081)				41,799
Description			Value
Total Investments and Purchased Options | 98.3% (Identified cost $105,977,230)			$	105,171,952
Cash and Other Assets in Excess of Liabilities | 1.7%				1,769,357
Net Assets | 100.0%			$	106,941,309

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

Annual Report  79

Lazard Emerging Markets Debt Portfolio (concluded)

Forward Currency Contracts open at December 31, 2011:

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
BRL	BRC	01/04/12		933,660	$	520,000	$	500,555	$	—	$	19,445
BRL	CIT	01/04/12		990,550		550,000		531,055		—		18,945
BRL	CIT	01/04/12		8,090,225		4,340,715		4,337,341		—		3,374
BRL	BRC	02/02/12		933,660		498,763		497,158		—		1,605
BRL	CIT	02/02/12		9,080,775		4,844,501		4,835,363		—		9,138
GHS	BRC	01/17/12		153,750		92,844		93,503		659		—
IDR	HSB	01/06/12		5,421,000,000		600,000		597,733		—		2,267
IDR	JPM	01/30/12		17,413,500,000		1,900,000		1,915,603		15,603		—
KRW	JPM	01/12/12		1,133,900,000		1,000,000		983,740		—		16,260
RUB	BRC	01/30/12		50,510,700		1,583,656		1,564,502		—		19,154
ZAR	BRC	01/11/12		245,963		30,267		30,435		168		—
Total Forward Currency Purchase Contracts					$	15,960,746	$	15,886,988	$	16,430	$	90,188
Forward Currency Sale Contracts
AUD	CIT	01/30/12		1,190,000	$	1,204,578	$	1,213,548	$	—	$	8,970
BRL	BRC	01/04/12		933,660		502,103		500,555		1,548		—
BRL	CIT	01/04/12		9,080,775		4,876,893		4,868,396		8,497		—
ILS	CIT	02/15/12		3,740,400		989,917		980,648		9,269		—
PHP	JPM	01/13/12		25,668,175		588,450		585,078		3,372		—
ZAR	BRC	01/19/12		7,751,900		919,375		957,935		—		38,560
Total Forward Currency Sale Contracts					$	9,081,316	$	9,106,160		22,686		47,530
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts									$	39,116	$	137,718

Written Options open at December 31, 2011:

Description	Number of Contracts		Strike Price		Expiration Date	Premium		Value
USD vs BRL 1.72 Put		30,000		1.72	02/02/12	$	26,325	$	900
USD vs MXN 13.00 Put		44,000		13.00	02/02/12		46,310		3,960
Total Written Options						$	72,635	$	4,860

Credit Default Swap Agreement open at December 31, 2011:

Referenced Obligation	Counterparty	Notional Amount	Expiration Date	Receive (Pay) Rate		Value			Upfront Premiums Paid (Received)			Unrealized Appreciation
Kingdom of Thailand	JPM	2,000,000	12/20/16	1.00	%	$	(69,984	)	$	(85,968	)	$	15,984

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

80  Annual Report

Description	Shares		Value
Lazard U.S. Realty Income Portfolio
Closed-End Management Investment Company | 0.9%
Ares Capital Corp. (Identified cost $217,884)		14,800	$	228,660
Common Stocks | 6.3%
Leisure & Entertainment | 2.3%
Starwood Hotels & Resorts Worldwide, Inc.		12,230		586,673
Real Estate | 4.0%
CBRE Group, Inc., Class A (a)		68,080		1,036,178
Total Common Stocks (Identified cost $1,566,932)				1,622,851
Preferred Stocks | 38.0%
Real Estate | 38.0%
Ashford Hospitality Trust, Inc., Series A, 8.550%		27,333		663,099
Ashford Hospitality Trust, Inc., Series D, 8.450%		37,510		874,733
Brandywine Realty Trust, Series C, 7.500%		8,560		212,802
Brandywine Realty Trust, Series D, 7.375%		8,650		214,607
CapLease, Inc., Series A, 8.125%		9,740		234,052
CBL & Associates Properties, Inc., Series C, 7.750%		11,960		297,684
Cedar Realty Trust, Inc., Series A, 8.875%		45,320		1,077,256
Cogdell Spencer, Inc., Series A, 8.500%		8,200		207,460
Cousins Properties, Inc., Series A, 7.750%		810		19,521
DDR Corp., Series H, 7.375%		9,090		220,432
DDR Corp., Series I, 7.500%		8,920		218,540
DuPont Fabros Technology, Inc., Series B, 7.625%		13,060		325,716

Description	Shares		Value
First Potomac Realty Trust, Series A, 7.750%	8,710	$	220,973
Glimcher Realty Trust, Series F, 8.750%	5,680		141,432
Glimcher Realty Trust, Series G, 8.125%	18,350		441,755
Hersha Hospitality Trust, Series A, 8.000%	19,033		455,840
Kite Realty Group Trust, Series A, 8.250%	19,080		439,794
Lexington Realty Trust, Series B, 8.050%	8,610		214,389
NorthStar Realty Finance Corp., Series A, 8.750%	44,220		948,961
Parkway Properties, Inc., Series D, 8.000%	23,092		534,811
Prologis, Inc., Series P, 6.850%	3,560		86,615
Prologis, Inc., Series S, 6.750%	9,250		219,965
Ramco-Gershenson Properties Trust, Series D, 7.250%	8,500		360,315
STAG Industrial, Inc., Series A, 9.000%	3,800		95,190
Sunstone Hotel Investors, Inc., Series A, 8.000%	47,007		1,106,075
Total Preferred Stocks (Identified cost $9,790,998)			9,832,017
Real Estate Investment Trusts | 45.7%
Agree Realty Corp.	19,720		480,774
Apollo Commercial Real Estate Finance, Inc.	65,410		858,833
Brandywine Realty Trust	75,850		720,575
CBL & Associates Properties, Inc.	31,020		487,014
Cedar Realty Trust, Inc.	140,890		607,236
Cogdell Spencer, Inc.	241,100		1,024,675
Colony Financial, Inc.	64,400		1,011,724
CommonWealth REIT	34,990		582,234
Corporate Office Properties Trust	14,300		304,018
Dynex Capital, Inc.	120,390		1,099,161
Entertainment Properties Trust	15,460		675,756
Hersha Hospitality Trust	263,800		1,287,344
Medical Properties Trust, Inc.	45,600		450,072

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

Annual Report  81

Description	Shares		Value
Lazard U.S. Realty Income Portfolio (concluded)
Ramco-Gershenson Properties Trust		48,000	$	471,840
Starwood Property Trust, Inc.		47,490		879,040
Whitestone REIT		73,600		875,840
Total Real Estate Investment Trusts (Identified cost $10,834,432)				11,816,136
Description	Principal Amount (000)		Value
Corporate Bond | 2.4%
Real Estate | 2.4%
Shimao Property Holdings, Ltd., 11.000%, 03/08/18 (Identified cost $625,000)	$	800	$	623,333
Description	Shares		Value
Short-Term Investment | 3.5%
State Street Institutional Treasury Money Market Fund (Identified cost $903,910)		903,910	$	903,910
Total Investments | 96.8% (Identified cost $23,939,156) (b)			$	25,026,907
Cash and Other Assets in Excess of Liabilities | 3.2%				829,267
Net Assets | 100.0%			$	25,856,174

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

82  Annual Report

Description	Shares		Value
Lazard U.S. Realty Equity Portfolio
Common Stocks | 11.3%
Leisure & Entertainment | 5.3%
Marriott International, Inc., Class A		1,042	$	30,395
Marriott Vacations Worldwide Corp. (a)		108		1,853
Starwood Hotels & Resorts Worldwide, Inc.		2,269		108,844
				141,092
Real Estate | 6.0%
CBRE Group, Inc., Class A (a)		6,166		93,847
Jones Lang LaSalle, Inc.		1,088		66,651
				160,498
Total Common Stocks (Identified cost $312,409)				301,590
Real Estate Investment Trusts | 86.8%
Apartment Investment & Management Co.		5,609		128,502
Ashford Hospitality Trust, Inc.		2,099		16,792
AvalonBay Communities, Inc.		558		72,875
Boston Properties, Inc.		1,003		99,899
Camden Property Trust		1,245		77,489
CBL & Associates Properties, Inc.		845		13,267
Cedar Realty Trust, Inc.		22,257		95,928
Cogdell Spencer, Inc.		16,504		70,142
Colony Financial, Inc.		2,300		36,133
CubeSmart		5,126		54,541
DDR Corp.		8,056		98,041
Douglas Emmett, Inc.		2,604		47,497
DuPont Fabros Technology, Inc.		1,743		42,215
Description	Shares		Value
Equity Residential		1,858	$	105,962
Essex Property Trust, Inc.		646		90,769
First Industrial Realty Trust, Inc. (a)		4,066		41,595
General Growth Properties, Inc.		3,296		49,506
Glimcher Realty Trust		7,480		68,816
Hersha Hospitality Trust		23,927		116,764
MPG Office Trust, Inc. (a)		23,025		45,820
Prologis, Inc.		4,360		124,652
Public Storage		970		130,426
Retail Opportunity Investments Corp.		3,403		40,291
Simon Property Group, Inc.		2,089		269,356
SL Green Realty Corp.		1,528		101,826
Sunstone Hotel Investors, Inc. (a)		4,414		35,974
Ventas, Inc.		2,450		135,068
Vornado Realty Trust		1,313		100,917
Total Real Estate Investment Trusts
(Identified cost $2,168,112)				2,311,063
Short-Term Investment | 1.5%
State Street Institutional Treasury Money Market Fund (Identified cost $38,983)		38,983		38,983
Total Investments | 99.6% (Identified cost $2,519,504) (b)			$	2,651,636
Cash and Other Assets in Excess of Liabilities | 0.4%				10,934
Net Assets | 100.0%			$	2,662,570

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

Annual Report  83

Description	Shares		Value
Lazard International Realty Equity Portfolio
Common Stocks | 74.7%
Brazil | 11.4%
Aliansce Shopping Centers SA		11,800	$	90,149
BR Properties SA		6,000		59,510
Cyrela Commercial Properties SA Empreendimentos e Participacoes		2,100		18,295
Gafisa SA		11,800		26,064
Multiplan Empreendimentos Imobiliarios SA		2,900		59,500
PDG Realty SA Empreendimentos e Participacoes		12,900		40,804
				294,322
Canada | 2.0%
Genesis Land Development Corp. (a)		8,600		24,312
Melcor Developments, Ltd.		2,150		27,794
				52,106
China | 9.7%
China Overseas Land & Investment, Ltd.		38,000		63,508
Shimao Property Holdings, Ltd.		97,000		82,430
Shui On Land, Ltd.		140,000		42,541
Soho China, Ltd.		93,000		62,027
				250,506
Hong Kong | 21.2%
Cheung Kong Holdings, Ltd.		14,000		166,830
Great Eagle Holdings, Ltd.		43,373		85,108
Hang Lung Properties, Ltd.		8,000		22,764
Sun Hung Kai Properties, Ltd.		16,000		200,551
The Wharf Holdings, Ltd.		16,000		72,516
				547,769
Japan | 15.8%
Daito Trust Construction Co., Ltd.		1,000		85,748
Mitsubishi Estate Co., Ltd.		9,000		134,468
Mitsui Fudosan Co., Ltd.		8,000		116,617
Sumitomo Realty & Development Co., Ltd.		4,000		70,053
				406,886
Luxembourg | 2.0%
GAGFAH SA		10,120		52,051
Norway | 2.8%
Norwegian Property ASA		58,000		71,375
Description	Shares		Value
Singapore | 2.3%
CapitaLand, Ltd.		35,000	$	59,635
United Kingdom | 0.9%
Unite Group PLC		9,000		23,481
United States | 6.6%
Brookfield Office Properties, Inc.		5,500		86,219
Marriott International, Inc., Class A		1,150		33,545
Marriott Vacations Worldwide Corp. (a)		104		1,785
Starwood Hotels & Resorts Worldwide, Inc.		1,000		47,970
				169,519
Total Common Stocks (Identified cost $2,160,475)				1,927,650
Real Estate Investment Trusts | 25.6%
Australia | 10.5%
Dexus Property Group		55,000		46,691
Goodman Group		132,940		77,504
Investa Office Fund		43,940		26,965
Westfield Group		15,050		120,220
				271,380
Canada | 1.2%
Boardwalk Real Estate Investment Trust		600		29,707
France | 3.9%
Fonciere des Regions		530		34,023
Unibail-Rodamco SE		377		67,774
				101,797
Italy | 1.3%
Beni Stabili SpA		77,110		34,511
Japan | 3.0%
Japan Hotel and Resort, Inc.		34		76,066
Netherlands | 0.9%
Eurocommercial Properties NV		740		23,493
Singapore | 1.0%
CDL Hospitality Trusts		22,000		26,206

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

84  Annual Report

Description	Shares		Value
Lazard International Realty Equity Portfolio (concluded)
United Kingdom | 3.8%
British Land Co. PLC		5,900	$	42,377
Derwent London PLC		2,300		55,722
				98,099
Total Real Estate Investment Trusts (Identified cost $664,308)				661,259
Description			Value
Total Investments | 100.3% (Identified cost $2,824,783) (b)			$	2,588,909
Liabilities in Excess of Cash and Other Assets | (0.3)%				(7,790	)
Net Assets | 100.0%			$	2,581,119

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

Annual Report  85

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio
Corporate Bonds | 95.8%
Aerospace & Defense | 1.3%
BE Aerospace, Inc., 8.500%, 07/01/18	$	525	$	574,875
Huntington Ingalls Industries, Inc., 6.875%, 03/15/18 (c)		1,500		1,470,000
				2,044,875
Apparel & Textiles | 1.6%
Jones Group, 6.875%, 03/15/19		1,500		1,350,000
Levi Strauss & Co., 7.625%, 05/15/20		1,300		1,327,625
				2,677,625
Automotive | 4.7%
ArvinMeritor, Inc., 8.125%, 09/15/15		215		192,425
Chrysler Group LLC, 8.250%, 06/15/21 (c)		825		750,750
Dana Holding Corp., 6.500%, 02/15/19		1,500		1,515,000
GMAC LLC, 6.750%, 12/01/14		165		165,825
Navistar International Corp., 8.250%, 11/01/21		743		790,366
The Goodyear Tire & Rubber Co.:
10.500%, 05/15/16		618		681,345
8.250%, 08/15/20		875		953,750
Tomkins LLC, 9.000%, 10/01/18		1,305		1,446,919
TRW Automotive, Inc., 8.875%, 12/01/17 (c)		1,000		1,085,000
				7,581,380
Building Materials | 4.1%
Griffon Corp., 7.125%, 04/01/18		450		445,500
Legrand France SA, 8.500%, 02/15/25		925		1,130,610
Masco Corp., 6.125%, 10/03/16		1,500		1,539,304
Owens Corning, Inc., 9.000%, 06/15/19		725		864,963
Description	Principal Amount (000)			Value
USG Corp.:
9.750%, 08/01/14 (c)	$	450	$	452,250
9.750%, 01/15/18		675		570,375
Vulcan Materials Co., 6.500%, 12/01/16		1,600		1,652,000
				6,655,002
Cable Television | 6.4%
Cablevision Systems Corp., 7.750%, 04/15/18		1,000		1,060,000
CCO Holdings LLC, 7.875%, 04/30/18		1,500		1,599,375
Cequel Communications Holdings LLC, 8.625%, 11/15/17 (c)		1,550		1,643,000
EchoStar DBS Corp., 7.125%, 02/01/16		775		835,062
Insight Communications Co., Inc., 9.375%, 07/15/18 (c)		1,100		1,256,750
Kabel BW Erste Beteiligungs GmbH, 7.500%, 03/15/19 (c)		1,400		1,470,000
Mediacom Broadband LLC, 8.500%, 10/15/15		875		901,250
Mediacom LLC, 9.125%, 08/15/19		175		185,719
Unitymedia Hessen GmbH & Co. KG, 8.125%, 12/01/17 (c)		1,325		1,399,531
				10,350,687
Chemicals | 0.8%
Lyondell Chemical Co., 8.000%, 11/01/17		271		296,067
Mosaic Global Holdings, Inc., 7.300%, 01/15/28		775		953,978
				1,250,045
Computer Services | 2.1%
First Data Corp., 8.875%, 08/15/20 (c)		850		850,000
iGATE Corp., 9.000%, 05/01/16 (c)		1,200		1,239,000
SunGard Data Systems, Inc.:
10.250%, 08/15/15		564		584,445
7.375%, 11/15/18		750		767,813
				3,441,258

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

86  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Diversified | 1.4%
Amsted Industries, Inc., 8.125%, 03/15/18 (c)	$	1,100	$	1,166,000
General Cable Corp., 7.125%, 04/01/17		489		487,778
SPX Corp., 7.625%, 12/15/14		535		588,500
				2,242,278
Electric Generation | 3.7%
AES Corp., 8.000%, 10/15/17		1,472		1,619,200
Calpine Corp., 7.875%, 07/31/20 (c)		1,150		1,239,125
Edison Mission Energy, 7.750%, 06/15/16		1,175		857,750
GenOn Energy, Inc.:
9.500%, 10/15/18		650		658,125
9.875%, 10/15/20		475		482,125
NRG Energy, Inc.:
7.375%, 01/15/17		600		622,500
8.250%, 09/01/20		525		527,625
				6,006,450
Electronics | 1.2%
Freescale Semiconductor, Inc.:
8.875%, 12/15/14		75		76,875
9.250%, 04/15/18 (c)		900		961,875
MEMC Electronic Materials, Inc., 7.750%, 04/01/19		1,250		903,125
				1,941,875
Energy Exploration & Production | 1.9%
ATP Oil & Gas Corp., 11.875%, 05/01/15		1,225		805,438
Chesapeake Energy Corp., 9.500%, 02/15/15		1,400		1,603,000
Denbury Resources, Inc., 9.750%, 03/01/16		590		650,475
				3,058,913
Energy Services | 4.2%
Cie Generale de Geophysique – Veritas, 7.750%, 05/15/17		1,415		1,432,687
Citgo Petroleum Corp., 11.500%, 07/01/17 (c)		1,250		1,381,250
Expro Finance Luxembourg SCA, 8.500%, 12/15/16 (c)		700		616,000
Description	Principal Amount (000)			Value
Frac Tech Services LLC, 7.625%, 11/15/18 (c)	$	1,000	$	1,047,500
Offshore Group Investments, Ltd., 11.500%, 08/01/15		1,000		1,081,250
Tesoro Corp., 6.500%, 06/01/17		1,300		1,332,500
				6,891,187
Financial Services | 1.9%
Finance One PLC, 0.000%, 01/03/05 (a), (i)		20,000		0
Icahn Enterprises LP:
7.750%, 01/15/16		500		518,750
8.000%, 01/15/18		1,100		1,144,000
International Lease Finance Corp.:
8.625%, 09/15/15		500		512,500
5.750%, 05/15/16		500		463,771
8.750%, 03/15/17		500		515,000
Morgan Guarantee Trust, 0.000%, 07/31/04 (a), (i)		10,569		0
				3,154,021
Food & Beverages | 1.8%
Constellation Brands, Inc., 7.250%, 05/15/17		700		770,000
Dean Foods Co., 7.000%, 06/01/16		800		790,000
Del Monte Corp., 7.625%, 02/15/19		1,500		1,440,000
				3,000,000
Forest & Paper Products | 0.9%
ABI Escrow Corp., 10.250%, 10/15/18 (c)		690		760,725
Smurfit Kappa Treasury Funding, Ltd., 7.500%, 11/20/25		750		708,750
				1,469,475
Gaming | 5.1%
Boyd Gaming Corp., 9.125%, 12/01/18		1,000		950,000
Marina District Finance Co., Inc.:
9.500%, 10/15/15		500		467,500
9.875%, 08/15/18		500		456,250
MGM Resorts International, 10.375%, 05/15/14		900		1,028,250
Peninsula Gaming LLC:
8.375%, 08/15/15		625		662,500
10.750%, 08/15/17		225		235,688

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

  Annual Report 87

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Penn National Gaming, Inc., 8.750%, 08/15/19	$	825	$	897,187
Pinnacle Entertainment, Inc., 8.625%, 08/01/17		800		846,000
Scientific Games Corp., 8.125%, 09/15/18		350		358,750
Scientific Games International, Inc.:
7.875%, 06/15/16 (c)		525		531,562
9.250%, 06/15/19		250		265,000
Wynn Las Vegas LLC:
7.875%, 11/01/17		500		548,750
7.750%, 08/15/20		1,000		1,110,000
				8,357,437
Gas Distribution | 4.3%
Copano Energy LLC, 7.750%, 06/01/18		1,600		1,664,000
El Paso Corp., 7.000%, 06/15/17		650		712,174
Energy Transfer Equity LP, 7.500%, 10/15/20		1,250		1,365,625
Ferrellgas Partners LP:
8.625%, 06/15/20		520		503,100
6.500%, 05/01/21		500		440,000
Inergy LP, 7.000%, 10/01/18		1,575		1,598,625
Niska Gas Storage Partners LLC, 8.875%, 03/15/18		750		733,125
				7,016,649
Health Services | 6.7%
Apria Healthcare Group, Inc., 11.250%, 11/01/14		550		567,875
Biomet, Inc., 10.000%, 10/15/17		925		999,000
Fresenius US Finance II, Inc., 9.000%, 07/15/15 (c)		525		588,656
Grifols, Inc., 8.250%, 02/01/18		1,525		1,601,250
HCA, Inc., 8.000%, 10/01/18		1,600		1,692,000
Health Management Associates, Inc., 6.125%, 04/15/16		1,000		1,035,000
Kinetic Concepts Inc., 10.500%, 11/01/18 (c)		750		735,000
Lantheus Medical Imaging, Inc., 9.750%, 05/15/17		375		297,188
Description	Principal Amount (000)		Value
Service Corp. International, 6.750%, 04/01/16	$	750	$	811,875
Tenet Healthcare Corp., 8.875%, 07/01/19		1,000		1,122,500
Vanguard Health Holding Co., LLC, 8.000%, 02/01/18		1,500		1,488,750
				10,939,094
Leisure & Entertainment | 2.5%
AMC Entertainment, Inc.:
8.000%, 03/01/14		497		490,787
8.750%, 06/01/19		950		983,250
Cedar Fair LP, 9.125%, 08/01/18		225		244,688
Live Nation Entertainment, Inc., 8.125%, 05/15/18 (c)		135		136,013
Royal Caribbean Cruises, Ltd., 7.250%, 06/15/16		330		354,750
Speedway Motorsports, Inc., 8.750%, 06/01/16		826		900,340
Ticketmaster Entertainment LLC, 10.750%, 08/01/16		850		905,250
				4,015,078
Machinery | 1.1%
Case New Holland, Inc., 7.750%, 09/01/13		200		212,500
Terex Corp., 10.875%, 06/01/16		550		607,750
The Manitowoc Co., Inc., 8.500%, 11/01/20		1,000		1,053,750
				1,874,000
Media | 3.1%
Clear Channel Worldwide Holdings, Inc., 9.250%, 12/15/17		1,475		1,593,000
Lamar Media Corp., 7.875%, 04/15/18		1,000		1,060,000
LIN Television Corp., 8.375%, 04/15/18		1,400		1,363,250
WMG Acquisition Corp., 9.500%, 06/15/16		945		1,025,325
				5,041,575
Metals & Mining | 3.3%
Aleris International, Inc., 7.625%, 02/15/18		1,175		1,145,625
Arch Coal, Inc., 7.000%, 06/15/19 (c)		1,101		1,123,020

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

88  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Calcipar SA, 6.875%, 05/01/18 (c)	$	1,350	$	1,215,000
FMG Resources (August 2006) Property, Ltd.,
7.000%, 11/01/15 (c)		1,800		1,818,000
Freeport-McMoRan Copper & Gold, Inc., 8.375%, 04/01/17		100		106,250
				5,407,895
Packaging | 2.2%
Reynolds Group Issuer, Inc., 8.750%, 10/15/16 (c)		1,500		1,578,750
Sealed Air Corp., 8.125%, 09/15/19 (c)		1,775		1,943,625
				3,522,375
Pharmaceutical & biotechnology | 2.6%
Mylan, Inc.:
7.625%, 07/15/17 (c)		400		436,500
7.875%, 07/15/20 (c)		650		717,437
Valeant Pharmaceuticals International, Inc., 6.500%, 07/15/16 (c)		1,500		1,498,125
Warner Chilcott Co. LLC, 7.750%, 09/15/18		1,575		1,608,469
				4,260,531
Printing & Publishing | 3.3%
Deluxe Corp., 7.375%, 06/01/15		1,005		1,017,562
Gannett Co., Inc., 7.125%, 09/01/18		1,676		1,650,860
R.R. Donnelley & Sons Co., 7.250%, 05/15/18		1,600		1,552,000
The McClatchy Co., 11.500%, 02/15/17		1,200		1,161,000
				5,381,422
Real Estate | 3.0%
CB Richard Ellis Services, Inc., 11.625%, 06/15/17		975		1,123,687
CNL Lifestyle Properties, Inc., 7.250%, 04/15/19		1,600		1,480,000
DuPont Fabros Technology LP, 8.500%, 12/15/17		1,000		1,070,000
Forest City Enterprises, Inc., 7.625%, 06/01/15		475		466,688
Ventas Realty LP, 6.500%, 06/01/16		650		670,125
				4,810,500
Description	Principal Amount (000)		Value
Restaurants | 1.2%
Landry’s Restaurants, Inc., 11.625%, 12/01/15	$	1,075	$	1,131,438
The Wendy’s Co., 10.000%, 07/15/16		825		907,500
				2,038,938
Retail | 3.1%
Ingles Markets, Inc., 8.875%, 05/15/17		1,238		1,340,135
QVC, Inc., 7.500%, 10/01/19 (c)		1,000		1,072,500
Sears Holdings Corp., 6.625%, 10/15/18		1,525		1,159,000
SuperValu, Inc., 8.000%, 05/01/16		1,450		1,497,125
				5,068,760
Steel-Producers | 1.8%
AK Steel Corp., 7.625%, 05/15/20		1,400		1,316,000
Steel Dynamics, Inc., 7.750%, 04/15/16		264		275,220
United States Steel Corp., 6.050%, 06/01/17		1,475		1,408,625
				2,999,845
Support Services | 5.0%
Avis Budget Car Rental LLC:
7.625%, 05/15/14		341		344,410
7.750%, 05/15/16		410		413,075
9.625%, 03/15/18		835		864,225
Expedia, Inc., 8.500%, 07/01/16		375		404,063
Hertz Corp.:
8.875%, 01/01/14		60		60,300
7.500%, 10/15/18		1,000		1,045,000
Iron Mountain, Inc., 8.000%, 06/15/20		1,600		1,666,000
The GEO Group, Inc., 7.750%, 10/15/17		1,375		1,460,937
United Rentals North America, Inc., 9.250%, 12/15/19		1,000		1,047,500
West Corp., 11.000%, 10/15/16		850		894,625
				8,200,135

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

  Annual Report 89

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (concluded)
Technology Hardware | 0.8%
Seagate HDD Cayman, 7.750%, 12/15/18 (c)	$	1,175	$	1,249,906
Telecommunications | 7.1%
Cincinnati Bell, Inc., 8.250%, 10/15/17		1,350		1,356,750
Cricket Communications, Inc., 7.750%, 05/15/16		750		774,375
Equinix, Inc., 8.125%, 03/01/18		1,182		1,288,380
Frontier Communications Corp., 8.125%, 10/01/18		1,400		1,410,500
GCI, Inc., 8.625%, 11/15/19		1,000		1,061,250
Intelsat Jackson Holdings, Ltd.:
11.250%, 06/15/16		350		367,719
7.250%, 04/01/19 (c)		1,300		1,319,500
Level 3 Financing, Inc., 9.250%, 11/01/14		420		429,450
Sprint Capital Corp., 6.900%, 05/01/19		1,475		1,213,187
Wind Acquisition Finance SA, 11.750%, 07/15/17 (c)		800		716,000
Windstream Corp., 8.125%, 09/01/18		1,575		1,687,219
				11,624,330
Description	Principal Amount (000)		Value
Transportation | 1.6%
Hapag-Lloyd AG, 9.750%, 10/15/17 (c)	$	1,075	$	790,125
Overseas Shipholding Group, Inc., 8.125%, 03/30/18		1,300		797,875
Teekay Corp., 8.500%, 01/15/20		1,000		962,500
				2,550,500
Total Corporate Bonds (Identified cost $155,224,525)				156,124,041
Description	Shares		Value
Short-Term Investment | 2.8%
State Street Institutional Treasury Money Market Fund (Identified cost $4,487,970)		4,487,970	$	4,487,970
Total Investments | 98.6%
(Identified cost $159,712,495) (b)			$	160,612,011
Cash and Other Assets in Excess of Liabilities | 1.4%				2,268,354
Net Assets | 100.0%			$	162,880,365

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

90  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. Municipal Portfolio
Municipal Bonds | 98.0%
California | 6.0%
California State, 5.000%, 03/01/18	$	450	$	531,526
California State Department of Water Resources Center Valley Project Water System Series Y Pre-refunded, 5.250%, 12/01/12 (Escrowed to Maturity) (j)		5		5,226
Los Angeles California Unified School District Election of 1997 Series E, 5.125%, 07/01/21 (Pre-Refunded to 07/01/12 @ $100) (j)		50		51,195
University of California Revenue Series C, 4.750%, 05/15/14 (Pre-Refunded to 05/15/13 @ $101) (j)		50		53,547
Val Verde California Unified School District School Construction, 5.000%, 01/01/22 (Pre-Refunded to 01/01/15 @ $100) (j)		50		56,364
				697,858
Colorado | 0.5%
Denver Colorado City & County Airport Revenue Series B, 5.500%, 11/15/33 (Pre-Refunded to 11/15/13 @ $100) (j)		50		54,773
Connecticut | 0.9%
Connecticut State Health & Educational Facility Authority Revenue Connecticut State University System Series E, 5.000%, 11/01/15 (Pre-Refunded to 11/01/12 @ $100) (j)		50		51,936
Stamford Connecticut, 5.000%, 08/15/18 (Pre-Refunded to 08/15/12 @ $100) (j)		25		25,736
University of Connecticut Series A, 5.375%, 04/01/14 (Pre-Refunded to 04/01/12 @ $100) (j)		25		25,309
				102,981
Delaware | 4.4%
Delaware State Series 2009C, 5.000%, 10/01/18		410		511,163
Description	Principal Amount (000)		Value
Florida | 4.3%
Collier County Florida Industrial Development Authority Health Care Facilities Revenue NCH Healthcare System Project, 3.000%, 10/01/12	$	500	$	506,260
Georgia | 4.6%
Georgia State Series I, 5.000%, 07/01/18		200		248,296
Valdosta & Lowndes County Georgia Hospital Authority Revenue South Medical Center Project Series B, 5.000%, 10/01/21		250		294,488
				542,784
Illinois | 7.4%
Illinois State Toll Highway Authority Revenue Senior Priority Series A, 5.000%, 01/01/16		400		455,316
Will County Illinois Community Unit School District No. 209-U Wilmington, 9.000%, 01/01/24		320		410,006
				865,322
Indiana | 1.3%
Brownsburg Indiana 1999 School Building Corp. Refunded & Improvement, 5.375%, 02/01/23 (Pre-Refunded to 02/01/12 @ $100) (j)		50		50,187
Decatur Township Marion County Multi-School Building Corp., 5.000%, 07/15/17 (Pre-Refunded to 07/15/13 @ $100) (j)		100		107,079
				157,266
Maryland | 5.0%
Baltimore County Maryland Construction Public Improvement, 5.000%, 02/01/12		50		50,176
Carroll County Maryland, 5.000%, 11/01/17		100		122,314
Maryland State & Local Facilities Loan Series C, 5.000%, 03/01/16		350		410,116
				582,606

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

Annual Report  91

Description	Principal Amount (000)		Value
Lazard U.S. Municipal Portfolio (continued)
Massachusetts | 14.3%
Lowell Massachusetts, 5.000%, 10/15/15	$	300	$	318,783
Massachusetts Bay Transportation Authority Revenue Assessment Series A, 5.000%, 07/01/21		300		332,322
Massachusetts State:
Series A, 5.000%, 09/01/14		150		167,024
Series E, 5.000%, 11/01/24 (Pre-Refunded to 11/01/16 @ $100) (j)		50		59,809
Massachusetts State Municipal Wholesale Electric Co. Water Supply System Nuclear Project 5 Series A, 5.250%, 07/01/15		350		354,469
Southampton Massachusetts, 5.500%, 05/01/12		435		441,834
				1,674,241
Minnesota | 4.1%
Minnesota State, 5.000%, 11/01/16		400		477,844
Missouri | 0.2%
St. Louis Missouri Parking Facilities Revenue Downtown Parking Facilities Series A, 6.000%, 02/01/28 (Pre-Refunded to 02/01/12 @ $100) (j)		25		25,103
New Jersey | 5.8%
Essex County New Jersey Improvement Authority Guarenteed Lease County Correctional Series A, 5.000%, 10/01/28 (Pre-Refunded to 10/01/13 @ $100) (j)		50		54,027
New Jersey State Economic Development Authority Revenue School Facilities Construction Series C, 5.000%, 06/15/18 (Pre-Refunded to 06/15/12 @ $100) (j)		25		25,530
New Jersey State, 5.000%, 08/01/22 (Pre-Refunded to 08/01/12 @ $100) (j)		50		51,363
Description	Principal Amount (000)		Value
New Jersey State Educational Facilities Authority Revenue:
Princeton University Series E, 5.000%, 07/01/20 (Pre-Refunded to 07/01/13 @ $100) (j)	$	50	$	53,489
Rowan University Series C, 5.125%, 07/01/28 (Pre-Refunded to 07/01/14 @ $100) (j)		50		55,633
New Jersey State Transportation Trust Funding Authority Transportation System:
Series A, 5.625%, 06/15/14 (Escrowed to Maturity) (j)		75		84,307
Series C, 5.250%, 06/15/14 (Escrowed to Maturity) (j)		50		55,750
5.500%, 06/15/24 (Pre-Refunded to 06/15/13 @ $100) (j)		50		53,744
Series D, 5.000%, 06/15/16 (Pre-Refunded to 06/15/15 @ $100) (j)		25		28,643
New Jersey State Turnpike Authority Revenue Series A:
Pre-refunded, 6.000%, 01/01/14 (Escrowed to Maturity) (j)		50		55,467
Refunded, 6.000%, 01/01/14 (Escrowed to Maturity) (j)		50		55,467
Newark New Jersey Housing Authority/Port Authority Newark Marine Terminal, 5.000%, 01/01/37 (Pre-Refunded to 01/01/14 @ $100) (j)		25		27,239
Tobacco Settlement Financing Corp. New Jersey:
5.000%, 06/01/13 (Escrowed to Maturity) (j)		25		26,629
6.250%, 06/01/43 (Pre-Refunded to 06/01/13 @ $100) (j)		50		54,132
				681,420
New Mexico | 2.1%
New Mexico State Finance Authority State Transportation Revenue Sub Lien Series A-2, 5.000%, 12/15/17		200		241,690

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

92  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. Municipal Portfolio (continued)
New York | 6.3%
Metropolitan Transportation Authority New York Dedicated Tax Funding Series A, 4.750%, 04/01/28 (Pre-Refunded to 10/01/15 @ $100) (j)	$	50	$	57,439
New York State Dormitory Authority Revenue:
Columbia University Series B, 5.000%, 07/01/16		145		172,011
Insured Student Housing Corp., 5.000%, 07/01/23 (Pre-Refunded to 07/01/14 @ $100) (j)		50		55,545
Lease Revenue State University Dormitory Facilities MBIA-IBC, 5.000%, 07/01/32 (Pre-Refunded to 07/01/12 @ $100) (j)		50		51,165
State Personal Income Tax Revenue Education Series A, 5.000%, 03/15/17		100		115,942
New York State Thruway Authority Highway & Bridge Trust Fund Series A, 5.000%, 04/01/15		135		152,442
New York State Urban Development Corp. Revenue State Income Tax Series B-1, 5.000%, 03/15/12		25		25,235
Triborough Bridge & Tunnel Authority New York Revenue General Purpose Series A, 5.000%, 01/01/32 (Pre-Refunded to 01/01/12 @ $100) (j)		50		50,000
TSASC Inc. New York Tobacco Settlement Asset-Backed Series 1, 5.750%, 07/15/32 (Pre-Refunded to 07/15/12 @ $100) (j)		50		51,441
				731,220
North Carolina | 6.7%
Durham North Carolina, 5.000%, 04/01/17		450		544,972
Wake County North Carolina Public Improvement, 5.000%, 04/01/17		200		242,896
				787,868
Pennsylvania | 3.8%
Pennsylvania State Higher Educational Facilities Authority Revenue Temple University, 5.000%, 04/01/15		400		445,300
Description	Principal Amount (000)		Value
Tennessee | 3.3%
Metropolitan Government Nashville & Davidson County Tennessee Health & Educational Facilities Board Vanderbilt University Series B, 5.000%, 10/01/18	$	315	$	389,504
Texas | 6.7%
Dallas Texas Refunded & Improvement Series A, 5.000%, 02/15/20		325		405,655
Decatur Texas Independent School District School Building, 5.250%, 08/15/25		100		113,656
Plano Texas Independent School District School Building, 5.000%, 02/15/14 (Pre-Refunded to 02/15/13 @ $100) (j)		20		21,051
Texas State Transportation Commission Revenue, 5.000%, 04/01/20		200		237,864
				778,226
Utah | 0.9%
Clearfield Utah Sales Tax Revenue, 5.000%, 07/01/20 (Pre-Refunded to 07/01/13 @ $100) (j)		100		106,899
Washington | 7.0%
Energy Northwest Washington Electric Revenue Project No.3 Series A, 5.500%, 07/01/17		350		375,112
Washington State Series R-A, 5.000%, 01/01/15		400		449,648
				824,760
Wisconsin | 2.4%
Wisconsin State Health & Educational Facilities Authority Revenue Gundersen Lutheran Series A, 5.000%, 10/15/17		250		281,985
Total Municipal Bonds (Identified cost $11,136,597)				11,467,073

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

Annual Report  93

Description	Shares		Value
Lazard U.S. Municipal Portfolio (concluded)
Short-Term Investment | 0.6%
State Street Institutional Treasury Money Market Fund (Identified cost $66,040)		66,040	$	66,040
Description			Value
Total Investments | 98.6%
(Identified cost $11,202,637) (b)			$	11,533,113
Cash and Other Assets in Excess of Liabilities | 1.4%				163,473
Net Assets | 100.0%			$	11,696,586

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

94  Annual Report

Description	Shares		Value
Lazard Capital Allocator Opportunistic Strategies Portfolio
Exchange-Traded Funds | 80.3%
Consumer Discretionary Select Sector SPDR Fund		403,500	$	15,744,570
Energy Select Sector SPDR Fund		189,500		13,100,135
Health Care Select Sector SPDR Fund		211,700		7,343,873
Industrial Select Sector SPDR Fund		348,300		11,755,125
iShares FTSE China 25 Index Fund		221,200		7,713,244
iShares MSCI South Korea Index Fund		274,800		14,361,048
iShares MSCI Taiwan Index Fund		315,600		3,695,676
Market Vectors Agribusiness ETF		168,200		7,930,630
Market Vectors Steel Index Fund		104,000		4,945,200
Materials Select Sector SPDR Trust		168,000		5,628,000
SPDR Barclays Capital High Yield Bond ETF		1,101,600		42,356,520
SPDR Gold Trust (a)		108,650		16,513,713
SPDR Russell/Nomura Small Cap Japan ETF		306,000		12,574,764
Vanguard Information Technology Index ETF		263,100		16,146,447
Vanguard Short-Term Corporate Bond ETF		352,600		27,453,436
Vanguard Utilities ETF		71,700		5,513,013
Total Exchange-Traded Funds (Identified cost $217,226,015)				212,775,394
Closed-End Management Investment Companies | 7.3%
The China Fund, Inc.		310,500		6,368,355
Tri-Continental Corp.		919,825		13,089,110
Total Closed-End Management Investment Companies (Identified cost $21,641,539)				19,457,465
Description	Shares		Value
Short-Term Investment | 10.9%
State Street Institutional Treasury Money Market Fund (Identified cost $28,815,867)		28,815,867	$	28,815,867
Total Investments | 98.5%
(Identified cost $267,683,421) (b)				261,048,726
Description	Number of Contracts		Value
Purchased Option | 0.0%
Put - iShares Barclays 20+ Year Treasury Bond Fund, Expires 01/21/12 (Identified cost $4,317,455)		7,084	$	7,084
Total Investments and Purchased Option | 98.5%
(Identified cost $272,000,876)			$	261,055,810
Cash and Other Assets in Excess of Liabilities | 1.5%				3,886,910
Net Assets | 100.0%			$	264,942,720

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

Annual Report  95

Lazard Capital Allocator Opportunistic Strategies Portfolio (concluded)

Forward Currency Contracts open at December 31, 2011:

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	02/16/12	6,017,042	$	7,858,076	$	7,789,940	$	—	$	68,136
Forward Currency Sale Contracts
EUR	SSB	02/16/12	6,017,042	$	8,114,342	$	7,789,940	$	324,402	$	—
JPY	SSB	02/16/12	998,146,200		12,887,953		12,976,645		—		88,692
Total Forward Currency Sale Contracts				$	21,002,295	$	20,766,585		324,402		88,692
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts								$	324,402	$	156,828

Total Return Swap Agreements open at December 31, 2011:

Currency	Counterparty	Notional Amount	Expiration Date	Pay	Receive		Net Unrealized Appreciation
USD	GSC	10,910,484	07/06/12	1 Month USD	Appreciation, and
				LIBOR plus	dividends paid, on
				0.40%	securities in the
					Equity Basket	$	253,656
USD	GSC	11,619,000	06/13/12	1 Month USD	Appreciation, and
				LIBOR plus	dividends paid, on
				0.40%	securities in the
					Equity Basket		402,000
USD	GSC	12,524,288	07/30/12	1 Month USD	Appreciation, and
				LIBOR plus	dividends paid, on
				0.40%	securities in the
					Equity Basket		533,792
Total net unrealized appreciation on Total Return Swap Agreements						$	1,189,448

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

96  Annual Report

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2011

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

Portfolio	Aggregate Cost		Aggregate Gross Unrealized Appreciation		Aggregate Gross Unrealized Depreciation		Net Unrealized Appreciation (Depreciation)
U.S. Equity Value Portfolio	$	11,361,722	$	756,240	$	636,487	$	119,753
U.S. Strategic Equity Portfolio		64,594,481		9,614,062		1,538,067		8,075,995
U.S. Mid Cap Equity Portfolio		146,294,922		9,125,589		8,999,041		126,548
U.S. Small-Mid Cap Equity Portfolio		189,086,619		8,028,985		10,145,099		(2,116,114	)
Global Listed Infrastructure Portfolio		121,699,846		2,910,406		17,371,014		(14,460,608	)
International Equity Portfolio		100,836,356		8,714,700		6,155,826		2,558,874
International Equity Select Portfolio		7,096,369		427,937		628,529		(200,592	)
International Strategic Equity Portfolio		489,081,220		12,043,337		8,769,319		3,274,018
International Small Cap Equity Portfolio		54,119,564		7,290,275		4,802,271		2,488,004
Emerging Markets Equity Portfolio		14,133,938,862		1,479,251,098		2,058,183,439		(578,932,341	)
Developing Markets Equity Portfolio		284,531,929		2,484,928		63,709,939		(61,225,011	)
Emerging Markets Equity Blend Portfolio		131,084,842		2,201,795		24,317,074		(22,115,279	)
Emerging Markets Multi-Strategy Portfolio		60,950,970		648,606		5,579,539		(4,930,933	)
Emerging Markets Debt Portfolio		106,030,946		1,733,941		2,592,935		(858,994	)
U.S. Realty Income Portfolio		23,853,310		1,488,280		314,683		1,173,597
U.S. Realty Equity Portfolio		2,589,271		141,866		79,521		62,365
International Realty Equity Portfolio		2,842,262		25,658		279,011		(253,353	)
U.S. High Yield Portfolio		159,724,502		5,497,899		4,610,390		887,509
U.S. Municipal Portfolio		11,202,637		348,584		18,108		330,476
Capital Allocator Opportunistic Strategies Portfolio		274,461,652		3,274,628		16,680,470		(13,405,842	)

(c) Pursuant to Rule 144A under the Securities Act of 1933, these securities may only be traded among “qualified institutional buyers,” and are considered to be liquid at December 31, 2011. The percentage of net assets are as follows:

Portfolio	Percentage of Net Assets
Global Listed Infrastructure Portfolio		4.6	%
International Strategic Equity Portfolio		1.0
Emerging Markets Equity Portfolio		0.6
Emerging Markets Multi-Strategy Portfolio		2.6
Emerging Markets Debt Portfolio		4.6
U.S. High Yield Portfolio		22.3

(d)	Segregated security for forward currency contracts.
(e)	Principal amount denominated in USD unless otherwise specified.
(f)	Step up bonds are securities which increase the interest payment rate at a specified point in time. Rate shown reflects rate in effect at December 31, 2011, which may step up at a future date.
(g)	Principal amount denominated in respective country’s currency.
(h)	Issue in default.

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

Annual Report  97

(i)	Bankrupt issuer; security valued at zero; principal amount denominated in respective country’s currency.
(j)	Security collateralized by an amount sufficient to pay principal and interest.
(k)	Private placements.
(l)	Security valued using Level 2 inputs under accounting principles generally accepted in the United States of America (“GAAP”) hierarchy - see Note 9.

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
BRL	—	Brazilian Real
CAD	—	Canadian Dollar
CHF	—	Swiss Franc
CLP	—	Chilean Peso
CNY	—	Chinese Renminbi
COP	—	Colombian Peso
CZK	—	Czech Koruna
EUR	—	Euro
GHS	—	Ghanaian Cedi
HUF	—	Hungarian Forint
IDR	—	Indonesian Rupiah
ILS	—	Israeli Shekel
INR	—	Indian Rupee
JPY	—	Japanese Yen
KRW	—	South Korean Won
MXN	—	Mexican New Peso
MYR	—	Malaysian Ringgit
PEN	—	Peruvian Nuevo Sol
PHP	—	Philippine Peso
PLN	—	Polish Zloty
RON	—	New Romanian Leu
RUB	—	Russian Ruble
SGD	—	Singapore Dollar
THB	—	Thai Baht
TRY	—	New Turkish Lira
USD	—	United States Dollar
ZAR	—	South African Rand
Counterparty Abbreviations:
BNP	—	BNP Paribas SA
BRC	—	Barclays Bank PLC
CAN	—	Canadian Imperial Bank of Commerce
CIT	—	Citibank NA
CSF	—	Credit Suisse Group AG
GSC	—	Goldman Sachs Group, Inc.
HSB	—	HSBC Bank USA
ING	—	ING Bank NV
JPM	—	JPMorgan Chase Bank
MEL	—	Mellon Bank NA
RBC	—	Royal Bank of Canada
SCB	—	Standard Chartered Bank
SSB	—	State Street Bank and Trust Co.
UBS	—	UBS AG

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

98  Annual Report

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

Industry	Lazard Global Listed Infrastructure Portfolio			Lazard International Equity Portfolio			Lazard International Equity Select Portfolio			Lazard International Strategic Equity Portfolio			Lazard International Small Cap Equity Portfolio			Lazard Emerging Markets Equity Portfolio
Agriculture		—	%		0.8	%		—	%		0.8	%		—	%		0.9	%
Airport Development & Maintenance		16.5			—			—			—			—			—
Alcohol & Tobacco		—			5.3			7.5			6.7			—			6.4
Apparel & Textiles		—			—			—			—			—			—
Automotive		—			3.0			2.5			2.6			2.2			—
Banking		—			10.2			10.6			6.3			1.6			16.7
Building Materials		—			—			—			—			—			0.8
Cable Television		—			0.7			0.8			1.8			—			—
Chemicals		—			—			—			2.7			2.1			—
Commercial Services		—			4.8			3.0			3.2			17.3			5.3
Computer Software		—			1.5			2.8			—			1.0			2.0
Construction & Engineering		—			—			—			—			2.1			1.7
Consumer Products		—			—			—			1.7			5.0			4.0
Diamonds & Precious Stones		—			—			—			—			—			—
Diversified		—			0.4			0.8			—			—			2.3
Electric		21.2			1.0			—			—			—			1.5
Electric Generation		—			—			—			—			—			—
Energy Exploration & Production		—			1.0			1.2			2.3			1.1			1.5
Energy Integrated		—			6.3			5.6			2.9			1.1			6.1
Energy Services		3.4			2.1			2.5			4.1			4.5			0.7
Financial Services		—			1.4			1.1			3.6			3.9			7.3
Food & Beverages		—			3.8			3.7			6.5			1.0			1.3
Forest & Paper Products		—			1.6			1.6			2.5			—			0.7
Gas Utilities		13.6			—			—			—			—			—
Health Services		—			—			—			1.3			3.8			—
Housing		—			4.6			2.8			5.0			1.8			2.4
Insurance		—			4.6			3.4			5.0			—			1.5
Leisure & Entertainment		—			2.2			1.5			6.5			2.9			1.0
Manufacturing		—			6.5			7.0			3.8			14.3			3.8
Medical Products		—			—			—			1.2			6.7			—
Metals & Mining		—			4.0			5.9			1.4			—			8.7
Pharmaceutical & Biotechnology		—			11.4			10.5			9.2			3.3			—
Real Estate		—			0.6			2.3			—			—			—
Restaurants		—			—			—			—			—			—
Retail		—			5.8			5.9			6.9			5.6			4.7
Semiconductors & Components		—			3.0			3.8			—			4.0			4.9
Technology		—			1.6			1.8			2.0			2.1			0.6
Technology Hardware		—			—			—			1.2			2.2			2.0
Telecommunications		—			5.4			6.0			1.2			3.4			9.7
Transportation		36.9			2.2			2.6			2.7			2.7			0.9
Water		3.5			—			—			—			—			—
Subtotal		95.1			95.8			97.2			95.1			95.7			99.4
Foreign Government Obligations		—			—			—			—			—			—
Supranationals		—			—			—			—			—			—
Short-Term Investments		—			—			1.6			3.6			4.3			—
Repurchase Agreement		—			2.1			—			—			—			—
Total Investments		95.1	%		97.9	%		98.8	%		98.7	%		100.0	%		99.4	%

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

Annual Report  99

Industry	Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Equity Blend Portfolio			Lazard Emerging Markets Multi-Strategy Portfolio			Lazard Emerging Markets Debt Portfolio			Lazard International Realty Equity Portfolio
Agriculture		2.0	%		2.2	%		1.3	%		—	%		—	%
Airport Development & Maintenance		—			—			—			—			—
Alcohol & Tobacco		—			2.5			1.4			—			—
Apparel & Textiles		1.5			1.7			0.9			—			—
Automotive		3.0			2.3			1.3			—			—
Banking		25.0			18.1			10.6			3.9			—
Building Materials		—			—			—			—			—
Cable Television		—			—			—			—			—
Chemicals		—			—			0.1			0.1			—
Commercial Services		—			1.4			0.8			—			—
Computer Software		2.4			1.6			0.9			—			—
Construction & Engineering		3.8			3.6			2.3			0.4			—
Consumer Products		—			1.5			0.8			—			—
Diamonds & Precious Stones		—			—			0.3			0.4			—
Diversified		—			1.0			0.9			—			—
Electric		1.0			1.2			0.7			0.2			—
Electric Generation		—			—			0.4			0.7			—
Energy Exploration & Production		7.9			3.3			2.6			3.3			—
Energy Integrated		6.9			7.8			6.1			2.4			—
Energy Services		2.7			2.1			1.1			—			—
Financial Services		2.2			3.0			1.5			—			—
Food & Beverages		—			1.5			0.8			—			—
Forest & Paper Products		—			1.0			0.5			—			—
Gas Utilities		—			—			0.2			0.2			—
Health Services		—			—			—			—			—
Housing		—			—			—			—			3.3
Insurance		2.1			2.9			1.6			—			—
Leisure & Entertainment		1.0			0.9			0.5			0.3			3.2
Manufacturing		8.5			5.8			3.2			—			—
Medical Products		—			—			—			—			—
Metals & Mining		5.0			5.7			3.7			0.9			—
Pharmaceutical & Biotechnology		—			—			—			—			—
Real Estate		6.3			2.4			1.3			—			93.8
Restaurants		—			—			—			0.8			—
Retail		5.3			3.9			2.1			—			—
Semiconductors & Components		4.8			6.7			3.7			—			—
Technology		—			—			—			—			—
Technology Hardware		1.8			3.2			1.8			—			—
Telecommunications		3.2			7.1			4.1			0.6			—
Transportation		2.0			1.6			1.1			0.8			—
Water		—			—			—			—			—
Subtotal		98.4			96			58.6			15.0			100.3
Foreign Government Obligations		—			—			17.8			74.1			—
Supranationals		—			—			0.3			0.2			—
Short-Term Investments		1.4			5.2			21.9			9.0			—
Total Investments		99.8	%		101.2	%		98.6	%		98.3	%		100.3	%

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

100  Annual Report

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The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2011	Lazard U.S. Equity Value Portfolio			Lazard U.S. Strategic Equity Portfolio
ASSETS
Investments in securities, at value	$	11,481,475		$	72,670,476
Cash		—			1,758
Foreign currency		—			—
Receivables for:
Investments sold		—			703,288
Capital stock sold		—			62,092
Dividends and interest		15,693			74,456
Gross unrealized appreciation on forward currency contracts		—			—
Total assets		11,497,168			73,512,070
LIABILITIES
Payables for:
Management fees		3,241			31,631
Accrued distribution fees		63			1,766
Accrued directors’ fees		20			134
Capital stock redeemed		—			579
Investments purchased		50,388			733,585
Line of credit outstanding		—			—
Gross unrealized depreciation on forward currency contracts		—			—
Other accrued expenses and payables		23,481			27,326
Total liabilities		77,193			795,021
Net assets	$	11,419,975		$	72,717,049
NET ASSETS
Paid in capital	$	13,579,445		$	82,129,188
Undistributed (distributions in excess of) net investment income (loss)		(15,130	)		954,274
Accumulated net realized loss		(2,452,257	)		(18,833,523	)
Net unrealized appreciation (depreciation) on:
Investments		307,917			8,467,110
Foreign currency and forward currency contracts		—			—
Net assets	$	11,419,975		$	72,717,049
Institutional Shares
Net assets	$	11,108,457		$	64,238,765
Shares of capital stock outstanding*		1,201,733			7,111,530
Net asset value, offering and redemption price per share	$	9.24		$	9.03
Open Shares
Net assets	$	311,518		$	8,478,284
Shares of capital stock outstanding*		33,507			937,896
Net asset value, offering and redemption price per share	$	9.30		$	9.04
Cost of investments in securities	$	11,173,558		$	64,203,366
Cost of foreign currency	$	—		$	—

* $0.001 par value, 2,650,000,000 shares authorized for the Portfolios in total.

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

102  Annual Report

December 31, 2011	Lazard U.S. Mid Cap Equity Portfolio			Lazard U.S. Small-Mid Cap Equity Portfolio			Lazard Global Listed Infrastructure Portfolio			Lazard International Equity Portfolio			Lazard International Equity Select Portfolio
ASSETS
Investments in securities, at value	$	146,421,470		$	186,970,505		$	107,239,238		$	103,395,230		$	6,895,777
Cash		—			441			—			634			—
Foreign currency		—			—			143,370			140,659			23,380
Receivables for:
Investments sold		1,506,223			2,407,614			2,256,283			2,227,539			116,937
Capital stock sold		163,695			64,539			2,456,511			65,766			8,511
Dividends and interest		93,964			144,347			472,684			196,133			13,778
Gross unrealized appreciation on forward currency contracts		—			—			1,692,107			—			—
Total assets		148,185,352			189,587,446			114,260,193			106,025,961			7,058,383
LIABILITIES
Payables for:
Management fees		93,742			127,584			86,953			67,040			4,381
Accrued distribution fees		11,036			4,222			1,738			3,958			518
Accrued directors’ fees		272			385			203			198			11
Capital stock redeemed		3,685,120			1,716,802			85,055			11,672			—
Investments purchased		551,241			607,217			6,802			319,221			44,505
Line of credit outstanding		—			—			1,060,000			—			—
Gross unrealized depreciation on forward currency contracts		—			—			182,599			—			—
Other accrued expenses and payables		56,123			49,702			38,567			44,507			26,716
Total liabilities		4,397,534			2,505,912			1,461,917			446,596			76,131
Net assets	$	143,787,818		$	187,081,534		$	112,798,276		$	105,579,365		$	6,982,252
NET ASSETS
Paid in capital	$	212,048,241		$	192,004,813		$	125,359,851		$	137,358,739		$	11,443,500
Undistributed (distributions in excess of) net investment income (loss)		54,669			204,383			247,112			2,229,799			66,486
Accumulated net realized loss		(68,595,094	)		(3,761,532	)		(5,609,975	)		(37,052,934	)		(4,433,777	)
Net unrealized appreciation (depreciation) on:
Investments		280,002			(1,366,130	)		(8,706,103	)		3,047,013			(93,792	)
Foreign currency and forward currency contracts		—			—			1,507,391			(3,252	)		(165	)
Net assets	$	143,787,818		$	187,081,534		$	112,798,276		$	105,579,365		$	6,982,252
Institutional Shares
Net assets	$	91,740,140		$	167,042,099		$	104,438,856		$	86,880,158		$	4,519,141
Shares of capital stock outstanding*		7,726,268			14,128,698			10,683,008			6,956,141			629,470
Net asset value, offering and redemption price per share	$	11.87		$	11.82		$	9.78		$	12.49		$	7.18
Open Shares
Net assets	$	52,047,678		$	20,039,435		$	8,359,420		$	18,699,207		$	2,463,111
Shares of capital stock outstanding*		4,439,926			1,739,728			854,515			1,485,123			341,991
Net asset value, offering and redemption price per share	$	11.72		$	11.52		$	9.78		$	12.59		$	7.20
Cost of investments in securities	$	146,141,468		$	188,336,635		$	115,945,341		$	100,348,217		$	6,989,569
Cost of foreign currency	$	—		$	—		$	140,161		$	140,841		$	23,137

Annual Report  103

December 31, 2011	Lazard International Strategic Equity Portfolio			Lazard International Small Cap Equity Portfolio
ASSETS
Investments in securities and purchased options, at value	$	492,355,238		$	56,607,568
Cash		—			—
Foreign currency		2,538,538			787
Receivables for:
Investments sold		989,260			—
Capital stock sold		9,924,977			26,249
Dividends and interest		740,167			86,130
Swap agreements		—			—
Gross unrealized appreciation on:
Forward currency contracts		—			—
Swap agreements		—			—
Premium for swap agreements purchased		—			—
Deferred offering expenses		—			—
Total assets		506,548,180			56,720,734
LIABILITIES
Payables for:
Management fees		300,388			42,356
Accrued distribution fees		13,148			3,788
Accrued directors’ fees		811			105
Capital stock redeemed		155,646			12,634
Investments purchased		7,298,672			—
Dividends		—			—
Premium for written swap agreements		—			—
Line of credit outstanding		—			—
Gross unrealized depreciation on:
Forward currency contracts		—			—
Swap agreements		—			—
Written options, at value		—			—
Other accrued expenses and payables		88,648			38,341
Total liabilities		7,857,313			97,224
Net assets	$	498,690,867		$	56,623,510
NET ASSETS
Paid in capital	$	569,951,536		$	134,669,680
Undistributed (distributions in excess of) net investment income (loss)		1,352,099			828,360
Accumulated net realized gain (loss)		(77,878,719	)		(83,620,397	)
Net unrealized appreciation (depreciation) on:
Investments		5,261,329			4,748,933
Swap agreements		—			—
Written options		—			—
Foreign currency and forward currency contracts		4,622			(3,066	)
Net assets	$	498,690,867		$	56,623,510
Institutional Shares
Net assets	$	435,411,225		$	38,879,400
Shares of capital stock outstanding*		46,042,276			5,682,315
Net asset value, offering and redemption price per share	$	9.46		$	6.84
Open Shares
Net assets	$	63,279,642		$	17,744,110
Shares of capital stock outstanding*		6,637,650			2,586,982
Net asset value, offering and redemption price per share	$	9.53		$	6.86
Cost of investments in securities	$	487,093,909		$	51,858,635
Cost of foreign currency	$	2,540,484		$	777

* $0.001 par value, 2,650,000 shares authorized for the Portfolios in total.

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

104  Annual Report

December 31, 2011	Lazard Emerging Markets Equity Portfolio			Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Equity Blend Portfolio			Lazard Emerging Markets Multi-Strategy Portfolio			Lazard Emerging Markets Debt Portfolio
ASSETS
Investments in securities and purchased options, at value	$	13,555,006,521		$	223,306,918		$	108,969,562		$	56,020,037		$	105,171,952
Cash		—			27,761			7,944			1,285			—
Foreign currency		59,002,830			28,149			1,523,769			1,179,976			627,188
Receivables for:
Investments sold		70,415,222			55,009			24,456			114,194			47,440
Capital stock sold		36,997,441			2,022,855			690,702			45,535			8,406
Dividends and interest		16,714,866			342,215			154,638			259,317			1,403,923
Swap agreements		—			—			—			—			667
Gross unrealized appreciation on:
Forward currency contracts		—			—			—			224,299			39,116
Swap agreements		—			—			—			12,936			15,984
Premium for swap agreements purchased		—			—			—			31,172			—
Deferred offering expenses		—			—			—			12,599			7,152
Total assets		13,738,136,880			225,782,907			111,371,071			57,901,350			107,321,828
LIABILITIES
Payables for:
Management fees		12,015,812			188,987			141,579			11,658			44,826
Accrued distribution fees		598,291			14,121			4,474			50			27
Accrued directors’ fees		26,705			442			197			106			192
Capital stock redeemed		55,570,124			1,588,309			511,905			9,926			781
Investments purchased		514,990			47			2,987,068			789,702			6,314
Dividends		—			—			—			—			60,386
Premium for written swap agreements		—			—			—			330			85,968
Line of credit outstanding		30,570,000			—			—			—			—
Gross unrealized depreciation on:
Forward currency contracts		—			—			—			213,829			137,718
Swap agreements		—			—			—			3,628			—
Written options, at value		—			—			—			1,470			4,860
Other accrued expenses and payables		4,638,833			134,570			63,809			81,491			39,447
Total liabilities		103,934,755			1,926,476			3,709,032			1,112,190			380,519
Net assets	$	13,634,202,125		$	223,856,431		$	107,662,039		$	56,789,160		$	106,941,309
NET ASSETS
Paid in capital	$	14,224,157,443		$	290,331,114		$	131,113,762		$	62,645,088		$	108,578,440
Undistributed (distributions in excess of) net investment income (loss)		(26,686,008	)		(75,454	)		21,088			(331,733	)		(677,099	)
Accumulated net realized gain (loss)		(89,627,210	)		(7,783,344	)		(4,900,279	)		(1,091,185	)		(118,855	)
Net unrealized appreciation (depreciation) on:
Investments		(473,440,392	)		(58,613,909	)		(18,569,162	)		(4,471,825	)		(805,278	)
Swap agreements		—			—			—			9,308			15,984
Written options		—			—			—			20,988			67,775
Foreign currency and forward currency contracts		(201,708	)		(1,976	)		(3,370	)		8,519			(119,658	)
Net assets	$	13,634,202,125		$	223,856,431		$	107,662,039		$	56,789,160		$	106,941,309
Institutional Shares
Net assets	$	10,902,556,535		$	160,441,297		$	85,091,468		$	56,527,161		$	106,813,034
Shares of capital stock outstanding*		648,784,125			15,019,710			8,706,504			6,594,816			10,949,189
Net asset value, offering and redemption price per share	$	16.80		$	10.68		$	9.77		$	8.57		$	9.76
Open Shares
Net assets	$	2,731,645,590		$	63,415,134		$	22,570,571		$	261,999		$	128,275
Shares of capital stock outstanding*		158,774,554			5,935,969			2,312,343			30,517			13,123
Net asset value, offering and redemption price per share	$	17.20		$	10.68		$	9.76		$	8.59		$	9.77
Cost of investments in securities	$	14,028,446,913		$	281,920,827		$	127,538,724		$	60,491,862		$	105,977,230
Cost of foreign currency	$	59,075,919		$	28,117		$	1,523,573		$	1,180,168		$	638,550

Annual Report  105

December 31, 2011	Lazard U.S. Realty Income Portfolio		Lazard U.S. Realty Equity Portfolio
ASSETS
Investments in securities and purchased options, at value	$	25,026,907	$	2,651,636
Cash		—		—
Foreign currency		—		—
Receivables for:
Investments sold		—		—
Capital stock sold		502,635		—
Dividends and interest		357,471		11,062
Swap agreements		—		—
Amount due from Investment Manager (Note 3)		8,134		19,745
Gross unrealized appreciation on:
Forward currency contracts		—		—
Swap agreements		—		—
Deferred offering expenses		—		—
Total assets		25,895,147		2,682,443
LIABILITIES
Payables for:
Management fees		—		—
Accrued distribution fees		1,178		257
Accrued directors’ fees		13		3
Capital stock redeemed		16,174		—
Investments purchased		—		—
Dividends		—		—
Line of credit outstanding		—		—
Gross unrealized depreciation on forward currency contracts		—		—
Other accrued expenses and payables		21,608		19,613
Total liabilities		38,973		19,873
Net assets	$	25,856,174	$	2,662,570
NET ASSETS
Paid in capital	$	24,682,580	$	2,587,757
Undistributed (distributions in excess of) net investment income (loss)		—		—
Accumulated net realized loss		85,843		(57,319	)
Net unrealized appreciation (depreciation) on:
Investments		1,087,751		132,132
Swap agreements		—		—
Foreign currency and forward currency contracts		—		—
Net assets	$	25,856,174	$	2,662,570
Institutional Shares
Net assets	$	19,849,596	$	1,524,961
Shares of capital stock outstanding*		2,660,028		102,426
Net asset value, offering and redemption price per share	$	7.46	$	14.89
Open Shares
Net assets	$	6,006,578	$	1,137,609
Shares of capital stock outstanding*		805,878		76,246
Net asset value, offering and redemption price per share	$	7.45	$	14.92
Cost of investments in securities	$	23,939,156	$	2,519,504
Cost of foreign currency	$	—	$	—

* $0.001 par value, 2,650,000,000 shares authorized for the Portfolios in total.

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

106  Annual Report

December 31, 2011	Lazard International Realty Equity Portfolio			Lazard U.S. High Yield Portfolio			Lazard U.S. Municipal Portfolio			Lazard Capital Allocator Opportunistic Strategies Portfolio
ASSETS
Investments in securities and purchased options, at value	$	2,588,909		$	160,612,011		$	11,533,113		$	261,055,810
Cash		669			—			—			2,188,999
Foreign currency		359			—			—			—
Receivables for:
Investments sold		—			—			—			672,674
Capital stock sold		—			55,196			—			149,271
Dividends and interest		9,621			2,944,237			168,058			619,513
Swap agreements		—			—			—			8,712
Amount due from Investment Manager (Note 3)		11,591			—			13,127			—
Gross unrealized appreciation on:
Forward currency contracts		—			—			—			324,402
Swap agreements		—			—			—			1,189,448
Deferred offering expenses		—			—			6,998			—
Total assets		2,611,149			163,611,444			11,721,296			266,208,829
LIABILITIES
Payables for:
Management fees		—			62,405			—			201,712
Accrued distribution fees		717			2,390			22			1,293
Accrued directors’ fees		—			290			21			501
Capital stock redeemed		—			45,957			3,479			262,358
Investments purchased		—			454,819			—			608,953
Dividends		—			128,290			938			—
Line of credit outstanding		6,000			—			—			—
Gross unrealized depreciation on forward currency contracts		—			—			—			156,828
Other accrued expenses and payables		23,313			36,928			20,250			34,464
Total liabilities		30,030			731,079			24,710			1,266,109
Net assets	$	2,581,119		$	162,880,365		$	11,696,586		$	264,942,720
NET ASSETS
Paid in capital	$	2,925,875		$	169,436,768		$	11,449,984		$	279,205,044
Undistributed (distributions in excess of) net investment income (loss)		(26,911	)		(128,289	)		(300	)		(2,213,504	)
Accumulated net realized loss		(81,913	)		(7,327,630	)		(83,574	)		(2,460,776	)
Net unrealized appreciation (depreciation) on:
Investments		(235,874	)		899,516			330,476			(10,945,066	)
Swap agreements		—			—			—			1,189,448
Foreign currency and forward currency contracts		(58	)		—			—			167,574
Net assets	$	2,581,119		$	162,880,365		$	11,696,586		$	264,942,720
Institutional Shares
Net assets	$	1,914,326		$	151,277,833		$	11,593,390		$	258,831,520
Shares of capital stock outstanding*		157,229			31,644,633			1,132,905			27,954,774
Net asset value, offering and redemption price per share	$	12.18		$	4.78		$	10.23		$	9.26
Open Shares
Net assets	$	666,793		$	11,602,532		$	103,196		$	6,111,200
Shares of capital stock outstanding*		54,805			2,416,907			10,083			660,085
Net asset value, offering and redemption price per share	$	12.17		$	4.80		$	10.23		$	9.26
Cost of investments in securities	$	2,824,783		$	159,712,495		$	11,202,637		$	272,000,876
Cost of foreign currency	$	358		$	—		$	—		$	—

Annual Report  107

The Lazard Funds, Inc. Statements of Operations

For the year ended December 31, 2011	Lazard U.S. Equity Value Portfolio			Lazard U.S. Strategic Equity Portfolio
Investment Income
Income
Dividends	$	302,356		$	1,553,699
Interest		14			141
Total investment income*		302,370			1,553,840
Expenses
Management fees (Note 3)		90,343			532,456
Custodian fees		56,739			57,962
Distribution fees (Open Shares)		798			24,228
Shareholders’ services		26,091			27,685
Shareholders’ reports		3,865			6,169
Administration fees		52,582			65,215
Directors’ fees and expenses		399			2,369
Professional services		46,725			47,929
Registration fees		24,693			23,854
Other†		3,832			5,460
Total gross expenses		306,067			793,327
Management fees waived and expenses reimbursed		(189,564	)		(193,763	)
Administration fees waived		(18,750	)		—
Expense reductions (Note 2(j))		—			—
Total net expenses		97,753			599,564
Net investment income		204,617			954,276
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments**		364,274			5,688,163
Foreign currency and forward currency contracts		—			—
Net change in unrealized appreciation (depreciation) on:
Investments		(1,023,366	)		(4,935,431	)
Foreign currency and forward currency contracts		—			—
Net realized and unrealized gain (loss) on Investments, foreign currency and forward currency contracts		(659,092	)		752,732
Net increase (decrease) in net assets resulting from operations	$	(454,475	)	$	1,707,008
* Net of foreign withholding taxes of	$	—		$	—
** Net of foreign capital gains taxes of	$	—		$	—
† Includes interest on line of credit of	$	27		$	331

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

108 Annual Report

For the year ended December 31, 2011	Lazard U.S. Mid Cap Equity Portfolio			Lazard U.S. Small-Mid Cap Equity Portfolio			Lazard Global Listed Infrastructure Portfolio			Lazard International Equity Portfolio			Lazard International Equity Select Portfolio
Investment Income
Income
Dividends	$	2,268,870		$	2,172,247		$	7,578,154		$	3,631,743		$	189,146
Interest		806			1,136			1,226			619			140
Total investment income*		2,269,676			2,173,383			7,579,380			3,632,362			189,286
Expenses
Management fees (Note 3)		1,309,722			1,677,491			1,605,324			894,914			56,004
Custodian fees		81,855			97,514			132,476			143,003			97,852
Distribution fees (Open Shares)		146,544			56,196			10,350			70,050			6,993
Shareholders’ services		29,680			31,363			36,228			30,914			26,301
Shareholders’ reports		13,316			19,076			11,176			12,114			5,542
Administration fees		84,927			94,734			85,675			73,866			51,319
Directors’ fees and expenses		5,407			6,999			5,365			3,725			205
Professional services		49,931			51,002			50,991			50,050			47,806
Registration fees		42,879			30,450			25,179			28,082			24,154
Other†		9,208			9,039			6,832			7,029			3,664
Total gross expenses		1,773,469			2,073,864			1,969,596			1,313,747			319,840
Management fees waived and expenses reimbursed		—			—			(3,000	)		—			(235,676	)
Administration fees waived		—			—			—			—			—
Expense reductions (Note 2(j))		—			—			—			(22	)		—
Total net expenses		1,773,469			2,073,864			1,966,596			1,313,725			84,164
Net investment income		496,207			99,519			5,612,784			2,318,637			105,122
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments**		20,582,485			15,518,519			986,194			11,754,580			436,712
Foreign currency and forward currency contracts		—			—			(5,430,269	)		(20,658	)		(4,679	)
Net change in unrealized appreciation (depreciation) on:
Investments		(29,275,062	)		(35,330,896	)		(14,020,817	)		(21,001,458	)		(979,747	)
Foreign currency and forward currency contracts		—			—			4,010,528			(18,222	)		(1,368	)
Net realized and unrealized gain (loss) on Investments, foreign currency and forward currency contracts		(8,692,577	)		(19,812,377	)		(14,454,364	)		(9,285,758	)		(549,082	)
Net increase (decrease) in net assets resulting from operations	$	(8,196,370	)	$	(19,712,858	)	$	(8,841,580	)	$	(6,967,121	)	$	(443,960	)
* Net of foreign withholding taxes of	$	—		$	—		$	826,355		$	266,808		$	15,488
** Net of foreign capital gains taxes of	$	—		$	—		$	—		$	328		$	—
† Includes interest on line of credit of	$	1,597		$	113		$	79		$	794		$	25

Annual Report  109

For the period ended December 31, 2011	Lazard International Strategic Equity Portfolio			Lazard International Small Cap Equity Portfolio
Investment Income
Income
Dividends	$	10,550,673		$	1,824,167
Interest		3,062			76
Total investment income*		10,553,735			1,824,243
Expenses
Management fees (Note 3)		3,278,964			492,830
Custodian fees		257,933			99,404
Distribution fees (Open Shares)		141,639			56,022
Shareholders’ services		31,278			29,107
Shareholders’ reports		25,476			11,121
Administration fees		137,440			63,144
Directors’ fees and expenses		13,482			2,047
Professional services		55,587			48,953
Registration fees		44,069			27,404
Amortization of offering expenses		—			—
Other†		13,447			5,123
Total gross expenses		3,999,315			835,155
Management fees waived and expenses reimbursed		—			(25,396	)
Administration and shareholders’ services fees waived		—			—
Expense reductions (Note 2(j))		(10	)		—
Total net expenses		3,999,305			809,759
Net investment income		6,554,430			1,014,484
Net Realized and Unrealized Gain (Loss) on Investments, Options, Swap Agreements, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments**		10,009,033			1,699,668
Options		—			—
Swap agreements		—			—
Foreign currency and forward currency contracts		(167,762	)		9,967
Net change in unrealized appreciation (depreciation) on:
Investments		(61,906,966	)		(12,132,397	)
Options		—			—
Swap agreements		—			—
Foreign currency and forward currency contracts		(8,407	)		(10,407	)
Net realized and unrealized gain (loss) on investments, options, swap agreements, foreign currency and forward currency contracts		(52,074,102	)		(10,433,169	)
Net increase (decrease) in net assets resulting from operations	$	(45,519,672	)	$	(9,418,685	)
* Net of foreign withholding taxes of	$	766,937		$	159,983
** Net of foreign capital gains taxes of	$	—		$	—
† Includes interest on line of credit of	$	—		$	135

(a) From Portfolio’s commencement of operations on March 31, 2011.
(b) From Portfolio’s commencement of operations on February 28, 2011.

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

110  Annual Report

For the period ended December 31, 2011	Lazard Emerging Markets Equity Portfolio			Lazard Developing Markets Equity Portfolio			Lazard Emerging Markets Equity Blend Portfolio			Lazard Emerging Markets Multi-Strategy Portfolio (a)			Lazard Emerging Markets Debt Portfolio (b)
Investment Income
Income
Dividends	$	589,962,855		$	4,118,243		$	2,728,358		$	410,133		$	—
Interest		31,893			1,142			1,358			426,076			1,931,781
Total investment income*		589,994,748			4,119,385			2,729,716			836,209			1,931,781
Expenses
Management fees (Note 3)		165,270,120			2,377,995			1,071,924			317,396			296,699
Custodian fees		13,098,817			374,036			271,239			190,232			87,815
Distribution fees (Open Shares)		8,877,275			215,988			40,806			188			244
Shareholders’ services		3,184,154			91,070			43,184			22,362			26,093
Shareholders’ reports		1,943,882			98,885			17,972			1,937			10,691
Administration fees		1,802,702			97,561			70,419			42,617			47,629
Directors’ fees and expenses		513,099			7,260			3,116			978			1,190
Professional services		383,718			51,797			49,421			98,031			119,195
Registration fees		148,920			46,873			40,861			3,858			4,363
Amortization of offering expenses		—			—			17,143			38,497			37,096
Other†		434,775			9,575			6,805			4,088			4,401
Total gross expenses		195,657,462			3,371,040			1,632,890			720,184			635,416
Management fees waived and expenses reimbursed		—			(20,330	)		(206,064	)		(293,815	)		(229,341	)
Administration and shareholders’ services fees waived		—			—			—			(13,529	)		(21,558	)
Expense reductions (Note 2(j))		(2,936	)		(136	)		(44	)		—			—
Total net expenses		195,654,526			3,350,574			1,426,782			412,840			384,517
Net investment income		394,340,222			768,811			1,302,934			423,369			1,547,264
Net Realized and Unrealized Gain (Loss) on Investments, Options, Swap Agreements, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments**		1,046,113,927			1,004,236			(4,899,130	)		(1,217,072	)		(238,468	)
Options		—			—			—			12,042			117,221
Swap agreements		—			—			—			(223,763	)		35,501
Foreign currency and forward currency contracts		(17,200,724	)		(785,936	)		(314,462	)		(130,586	)		(78,166	)
Net change in unrealized appreciation (depreciation) on:
Investments		(4,571,722,054	)		(75,219,196	)		(20,913,431	)		(4,471,825	)		(805,278	)
Options		—			—			—			20,988			67,775
Swap agreements		—			—			—			9,308			15,984
Foreign currency and forward currency contracts		(42,217	)		(14,283	)		(4,348	)		8,519			(119,658	)
Net realized and unrealized gain (loss) on investments, options, swap agreements, foreign currency and forward currency contracts		(3,542,851,068	)		(75,015,179	)		(26,131,371	)		(5,992,389	)		(1,005,089	)
Net increase (decrease) in net assets resulting from operations	$	(3,148,510,846	)	$	(74,246,368	)	$	(24,828,437	)	$	(5,569,020	)	$	542,175
* Net of foreign withholding taxes of	$	47,340,482		$	468,472		$	242,507		$	40,512		$	18,719
** Net of foreign capital gains taxes of	$	—		$	7,738		$	7,854		$	1,211		$	2,633
† Includes interest on line of credit of	$	—		$	245		$	914		$	—		$	—

Annual Report  111

For the period ended December 31, 2011	Lazard U.S. Realty Income Portfolio (a)			Lazard U.S. Realty Equity Portfolio (a)
Investment Income
Income
Dividends	$	794,328		$	62,535
Interest		16,997			219
Total investment income*		811,325			62,754
Expenses
Management fees (Note 3)		76,289			18,027
Custodian fees		28,498			25,231
Distribution fees (Open Shares)		13,909			4,071
Shareholders’ services		17,809			12,584
Shareholders’ reports		2,682			40
Administration fees		24,977			31,215
Directors’ fees and expenses		1,568			1,454
Professional services		56,896			46,731
Registration fees		16,497			13,674
Amortization of offering expenses		—			—
Other**		4,378			4,464
Total gross expenses		243,503			157,491
Management fees waived and expenses reimbursed		(117,472	)		(113,721	)
Administration and shareholders’ services fees waived		(7,379	)		(10,643	)
Expense reductions (Note 2(j))		(9	)		—
Total net expenses		118,643			33,127
Net investment income		692,682			29,627
Net Realized and Unrealized Gain (Loss) on Investments, Options, Swap Agreements, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments		(328,419	)		233,473
Options		6,119			175
Swap agreements		—			—
Foreign currency and forward currency contracts		—			—
Net change in unrealized appreciation (depreciation) on:
Investments		(702,514	)		(661,411	)
Swap agreements		—			—
Foreign currency and forward currency contracts		—			—
Net realized and unrealized gain (loss) on investments, options, swap agreements, foreign currency and forward currency contracts		(1,024,814	)		(427,763	)
Net increase (decrease) in net assets resulting from operations	$	(332,132	)	$	(398,136	)
* Net of foreign withholding taxes of	$	—		$	—
** Includes interest on line of credit of	$	—		$	3

(a)	For the period June 1, 2011 to December 31, 2011.
(b)	From Portfolio’s commencement of operations on February 28, 2011.

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

112  Annual Report

For the period ended December 31, 2011	Lazard International Realty Equity Portfolio (a)			Lazard U.S. High Yield Portfolio			Lazard U.S. Municipal Portfolio (b)			Lazard Capital Allocator Opportunistic Strategies Portfolio
Investment Income
Income
Dividends	$	26,415		$	—		$	—		$	5,783,466
Interest		19			11,619,602			210,629			1,826
Total investment income*		26,434			11,619,602			210,629			5,785,292
Expenses
Management fees (Note 3)		10,523			834,199			22,197			2,552,451
Custodian fees		39,986			78,586			39,811			61,237
Distribution fees (Open Shares)		733			49,069			212			17,237
Shareholders’ services		11,701			36,755			26,056			30,797
Shareholders’ reports		40			6,983			15,618			10,272
Administration fees		31,719			80,336			43,554			101,051
Directors’ fees and expenses		1,439			4,674			299			7,929
Professional services		46,730			49,225			94,242			87,756
Registration fees		13,642			29,993			5,162			30,960
Amortization of offering expenses		—			—			36,301			—
Other**		4,416			8,789			4,176			9,892
Total gross expenses		160,929			1,178,609			287,628			2,909,582
Management fees waived and expenses reimbursed		(131,851	)		(284,996	)		(224,278	)		(284,251	)
Administration and shareholders’ services fees waived		(10,748	)		—			(27,579	)		—
Expense reductions (Note 2(j))		(1	)		(170	)		—			(1,152	)
Total net expenses		18,329			893,443			35,771			2,624,179
Net investment income		8,105			10,726,159			174,858			3,161,113
Net Realized and Unrealized Gain (Loss) on Investments, Options, Swap Agreements, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments		(57,706	)		2,052,076			(34,936	)		25,449,163
Options		—			—			—			1,303,732
Swap agreements		—			—			—			2,504,525
Foreign currency and forward currency contracts		(5,844	)		—			—			(1,105,124	)
Net change in unrealized appreciation (depreciation) on:
Investments		(404,002	)		(5,269,974	)		330,476			(38,496,829	)
Swap agreements		—			—			—			1,101,438
Foreign currency and forward currency contracts		(280	)		—			—			(23,500	)
Net realized and unrealized gain (loss) on investments, options, swap agreements, foreign currency and forward currency contracts		(467,832	)		(3,217,898	)		295,540			(9,266,595	)
Net increase (decrease) in net assets resulting from operations	$	(459,727	)	$	7,508,261		$	470,398		$	(6,105,482	)
* Net of foreign withholding taxes of	$	3,349		$	—		$	—		$	396,111
** Includes interest on line of credit of	$	4		$	2,071		$	—		$	—

Annual Report  113

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

	Lazard U.S. Equity Value Portfolio						Lazard U.S. Strategic Equity Portfolio
	Year Ended December 31, 2011			Year Ended December 31, 2010			Year Ended December 31, 2011			Year Ended December 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income	$	204,617		$	130,397		$	954,276		$	635,045
Net realized gain (loss) on investments		364,274			440,071			5,688,163			4,650,912
Net change in unrealized appreciation (depreciation) on investments, foreign currency and forward currency contracts		(1,023,366	)		840,376			(4,935,431	)		4,195,742
Net increase (decrease) in net assets resulting from operations		(454,475	)		1,410,844			1,707,008			9,481,699
Distributions to shareholders
From net investment income
Institutional Shares		(198,163	)		(126,683	)		(576,867	)		(724,232	)
Open Shares		(4,595	)		(2,060	)		(58,180	)		(77,713	)
From net realized gains
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Net decrease in net assets resulting from distributions		(202,758	)		(128,743	)		(635,047	)		(801,945	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		1,193,666			3,643,690			6,937,102			4,048,153
Open Shares		89,277			39,967			4,340,833			3,578,373
Net proceeds from reinvestment of distributions
Institutional Shares		185,473			125,251			567,917			712,514
Open Shares		4,156			1,859			52,247			70,284
Cost of shares redeemed
Institutional Shares		(2,693,580	)		(416,674	)		(15,409,162	)		(7,261,909	)
Open Shares		(62,855	)		(81,181	)		(6,074,788	)		(3,693,636	)
Net increase (decrease) in net assets from capital stock transactions		(1,283,863	)		3,312,912			(9,585,851	)		(2,546,221	)
Redemption fees (Note 2(k))
Institutional Shares		792			1,143			3			8
Open Shares		27			—			—			92
Net increase in net assets from redemption fees		819			1,143			3			100
Total increase (decrease) in net assets		(1,940,277	)		4,596,156			(8,513,887	)		6,133,633
Net assets at beginning of year		13,360,252			8,764,096			81,230,936			75,097,303
Net assets at end of year*	$	11,419,975		$	13,360,252		$	72,717,049		$	81,230,936
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	(15,130	)	$	(16,988	)	$	954,274		$	635,059
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		1,367,217			982,317			7,940,671			8,247,044
Shares sold		125,073			417,278			747,369			501,965
Shares issued to shareholders from reinvestment of distributions		20,226			13,102			68,341			90,306
Shares redeemed		(310,783	)		(45,480	)		(1,644,851	)		(898,644	)
Net increase (decrease)		(165,484	)		384,900			(829,141	)		(306,373	)
Shares outstanding at end of year		1,201,733			1,367,217			7,111,530			7,940,671
Open Shares
Shares outstanding at beginning of year		30,610			34,649			1,117,356			1,114,686
Shares sold		9,117			4,605			493,469			450,158
Shares issued to shareholders from reinvestment of distributions		450			193			6,273			8,897
Shares redeemed		(6,670	)		(8,837	)		(679,202	)		(456,385	)
Net increase (decrease)		2,897			(4,039	)		(179,460	)		2,670
Shares outstanding at end of year		33,507			30,610			937,896			1,117,356

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

114  Annual Report

	Lazard U.S. Mid Cap Equity Portfolio						Lazard U.S. Small-Mid Cap Equity Portfolio						Lazard Global Listed Infrastructure Portfolio
	Year Ended December 31, 2011			Year Ended December 31, 2010			Year Ended December 31, 2011			Year Ended December 31, 2010			Year Ended December 31, 2011			Year Ended December 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income	$	496,207		$	1,629,460		$	99,519		$	751,418		$	5,612,784		$	2,744,722
Net realized gain (loss) on investments		20,582,485			37,964,019			15,518,519			21,787,222			(4,444,075	)		1,703,424
Net change in unrealized appreciation (depreciation) on investments, foreign currency and forward currency contracts		(29,275,062	)		2,333,458			(35,330,896	)		17,969,577			(10,010,289	)		2,811,577
Net increase (decrease) in net assets resulting from operations		(8,196,370	)		41,926,937			(19,712,858	)		40,508,217			(8,841,580	)		7,259,723
Distributions to shareholders
From net investment income
Institutional Shares		(289,121	)		(1,096,389	)		—			(716,032	)		(2,943,345	)		(2,358,069	)
Open Shares		(10,886	)		(483,080	)		—			—			(44,386	)		(1,520	)
From net realized gains
Institutional Shares		—			—			(16,582,657	)		—			(2,415,101	)		(1,083,838	)
Open Shares		—			—			(2,011,539	)		—			(194,462	)		(1,111	)
Net decrease in net assets resulting from distributions		(300,007	)		(1,579,469	)		(18,594,196	)		(716,032	)		(5,597,294	)		(3,444,538	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		36,120,152			43,741,530			61,357,231			169,823,469			213,298,092			138,755,505
Open Shares		16,367,559			15,303,321			11,124,812			7,423,916			10,292,625			115,519
Net proceeds from reinvestment of distributions
Institutional Shares		217,196			854,552			16,247,181			705,067			5,050,814			3,374,194
Open Shares		10,017			453,217			1,937,041			—			234,195			2,631
Cost of shares redeemed
Institutional Shares		(66,277,487	)		(87,725,369	)		(115,744,067	)		(22,913,323	)		(215,684,733	)		(30,332,490	)
Open Shares		(30,331,603	)		(29,807,859	)		(10,055,892	)		(9,883,866	)		(1,762,415	)		(56,269	)
Net increase (decrease) in net assets from capital stock transactions		(43,894,166	)		(57,180,608	)		(35,133,694	)		145,155,263			11,428,578			111,859,090
Redemption fees (Note 2(k))
Institutional Shares		1,396			1,535			662			468			10,079			86
Open Shares		861			3,431			701			114			237			—
Net increase in net assets from redemption fees		2,257			4,966			1,363			582			10,316			86
Total increase (decrease) in net assets		(52,388,286	)		(16,828,174	)		(73,439,385	)		184,948,030			(2,999,980	)		115,674,361
Net assets at beginning of year		196,176,104			213,004,278			260,520,919			75,572,889			115,798,256			123,895
Net assets at end of year*	$	143,787,818		$	196,176,104		$	187,081,534		$	260,520,919		$	112,798,276		$	115,798,256
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	54,669		$	—		$	204,383		$	34,368		$	247,112		$	590,908
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		10,039,112			13,891,697			16,413,981			4,750,537			11,214,996			7,390
Shares sold		2,844,927			3,862,950			4,644,003			13,342,989			20,313,345			13,916,801
Shares issued to shareholders from reinvestment of distributions		18,360			68,201			1,387,462			48,325			504,434			334,745
Shares redeemed		(5,176,131	)		(7,783,736	)		(8,316,748	)		(1,727,870	)		(21,349,767	)		(3,043,940	)
Net increase (decrease)		(2,312,844	)		(3,852,585	)		(2,285,283	)		11,663,444			(531,988	)		11,207,606
Shares outstanding at end of year		7,726,268			10,039,112			14,128,698			16,413,981			10,683,008			11,214,996
Open Shares
Shares outstanding at beginning of year		5,586,393			6,852,067			1,516,112			1,689,218			11,448			5,000
Shares sold		1,319,630			1,387,657			781,245			609,491			998,492			11,565
Shares issued to shareholders from reinvestment of distributions		858			36,432			169,767			—			23,929			259
Shares redeemed		(2,466,955	)		(2,689,763	)		(727,396	)		(782,597	)		(179,354	)		(5,376	)
Net increase (decrease)		(1,146,467	)		(1,265,674	)		223,616			(173,106	)		843,067			6,448
Shares outstanding at end of year		4,439,926			5,586,393			1,739,728			1,516,112			854,515			11,448

Annual Report  115

	Lazard International Equity Portfolio						Lazard International Equity Select Portfolio
	Year Ended December 31, 2011			Year Ended December 31, 2010			Year Ended December 31, 2011			Year Ended December 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income	$	2,318,637		$	2,323,165		$	105,122		$	108,846
Net realized gain (loss) on investments and foreign currency		11,733,922			(5,428,371	)		432,033			25,249
Net change in unrealized appreciation (depreciation) on investments and foreign currency		(21,019,680	)		14,260,871			(981,115	)		168,525
Net increase (decrease) in net assets resulting from operations		(6,967,121	)		11,155,665			(443,960	)		302,620
Distributions to shareholders
From net investment income
Institutional Shares		(2,126,498	)		(3,382,382	)		(107,555	)		(103,546	)
Open Shares		(635,263	)		(478,939	)		(74,627	)		(130,875	)
From net realized gains
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Net decrease in net assets resulting from distributions		(2,761,761	)		(3,861,321	)		(182,182	)		(234,421	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		12,560,444			3,881,399			2,016,281			1,434,641
Open Shares		9,794,122			12,170,804			506,572			582,214
Net proceeds from reinvestment of distributions
Institutional Shares		1,828,974			2,585,130			68,756			79,878
Open Shares		500,209			343,043			71,302			125,444
Cost of shares redeemed
Institutional Shares		(48,236,742	)		(23,987,029	)		(842,321	)		(1,882,800	)
Open Shares		(17,295,953	)		(4,723,671	)		(882,749	)		(2,193,350	)
Net increase (decrease) in net assets from capital stock transactions		(40,848,946	)		(9,730,324	)		937,841			(1,853,973	)
Redemption fees (Note 2(k))
Institutional Shares		2,419			91			434			—
Open Shares		505			513			—			335
Net increase in net assets from redemption fees		2,924			604			434			335
Total increase (decrease) in net assets		(50,574,904	)		(2,435,376	)		312,133			(1,785,439	)
Net assets at beginning of year		156,154,269			158,589,645			6,670,119			8,455,558
Net assets at end of year*	$	105,579,365		$	156,154,269		$	6,982,252		$	6,670,119
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	2,229,799		$	2,291,453		$	66,486		$	130,072
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		9,233,358			10,584,664			452,165			509,472
Shares sold		997,694			303,754			272,980			184,363
Shares issued to shareholders from reinvestment of distributions		141,891			201,963			9,279			10,838
Shares redeemed		(3,416,802	)		(1,857,023	)		(104,954	)		(252,508	)
Net increase (decrease)		(2,277,217	)		(1,351,306	)		177,305			(57,307	)
Shares outstanding at end of year		6,956,141			9,233,358			629,470			452,165
Open Shares
Shares outstanding at beginning of year		2,060,873			1,474,744			381,274			586,579
Shares sold		724,217			923,563			62,633			74,636
Shares issued to shareholders from reinvestment of distributions		38,448			26,572			9,583			16,975
Shares redeemed		(1,338,415	)		(364,006	)		(111,499	)		(296,916	)
Net increase (decrease)		(575,750	)		586,129			(39,283	)		(205,305	)
Shares outstanding at end of year		1,485,123			2,060,873			341,991			381,274

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

116  Annual Report

	Lazard International Strategic Equity Portfolio						Lazard International Small Cap Equity Portfolio						Lazard Emerging Markets Equity Portfolio
	Year Ended December 31, 2011			Year Ended December 31, 2010			Year Ended December 31, 2011			Year Ended December 31, 2010			Year Ended December 31, 2011			Year Ended December 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income	$	6,554,430		$	4,622,267		$	1,014,484		$	858,678		$	394,340,222		$	283,104,469
Net realized gain (loss) on investments and foreign currency		9,841,271			11,133,378			1,709,635			(2,101,516	)		1,028,913,203			964,312,486
Net change in unrealized appreciation (depreciation) on investments and foreign currency		(61,915,373	)		35,502,431			(12,142,804	)		15,090,812			(4,571,764,271	)		2,041,977,043
Net increase (decrease) in net assets resulting from operations		(45,519,672	)		51,258,076			(9,418,685	)		13,847,974			(3,148,510,846	)		3,289,393,998
Distributions to shareholders
From net investment income
Institutional Shares		(5,917,381	)		(4,610,208	)		(782,430	)		(672,354	)		(393,452,725	)		(208,037,965	)
Open Shares		(521,056	)		(293,349	)		(325,694	)		(321,023	)		(76,508,524	)		(34,958,144	)
From net realized gains
Institutional Shares		—			—			—			—			(299,768,775	)		—
Open Shares		—			—			—			—			(72,975,928	)		—
Net decrease in net assets resulting from distributions		(6,438,437	)		(4,903,557	)		(1,108,124	)		(993,377	)		(842,705,952	)		(242,996,109	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		133,146,494			36,021,689			2,712,178			9,124,250			2,535,357,071			5,722,036,545
Open Shares		41,859,596			30,431,569			2,913,697			2,084,060			604,504,647			1,821,564,885
Net proceeds from reinvestment of distributions
Institutional Shares		4,887,709			3,625,597			314,338			284,490			562,336,863			179,495,263
Open Shares		516,732			291,220			310,678			306,999			136,437,018			31,783,216
Cost of shares redeemed
Institutional Shares		(13,586,712	)		(37,270,773	)		(4,218,322	)		(10,727,998	)		(3,596,569,693	)		(2,071,983,700	)
Open Shares		(18,325,098	)		(8,322,274	)		(7,000,181	)		(9,971,982	)		(1,365,191,505	)		(1,957,308,170	)
Net increase (decrease) in net assets from capital stock transactions		148,498,721			24,777,028			(4,967,612	)		(8,900,181	)		(1,123,125,599	)		3,725,588,039
Redemption fees (Note 2(k))
Institutional Shares		194			118			31			20			176,642			134,946
Open Shares		870			671			273			5			75,956			176,436
Net increase in net assets from redemption fees		1,064			789			304			25			252,598			311,382
Total increase (decrease) in net assets		96,541,676			71,132,336			(15,494,117	)		3,954,441			(5,114,089,799	)		6,772,297,310
Net assets at beginning of year		402,149,191			331,016,855			72,117,627			68,163,186			18,748,291,924			11,975,994,614
Net assets at end of year*	$	498,690,867		$	402,149,191		$	56,623,510		$	72,117,627		$	13,634,202,125		$	18,748,291,924
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	1,352,099		$	1,403,868		$	828,360		$	912,033		$	(26,686,008	)	$	(54,251,470	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		33,503,311			33,103,967			5,804,978			6,021,391			668,512,736			471,812,807
Shares sold		13,344,912			3,706,732			372,258			1,302,865			126,686,682			296,372,547
Shares issued to shareholders from reinvestment of distributions		517,072			353,917			43,719			40,758			33,468,597			8,561,139
Shares redeemed		(1,323,019	)		(3,661,305	)		(538,640	)		(1,560,036	)		(179,883,890	)		(108,233,757	)
Net increase (decrease)		12,538,965			399,344			(122,663	)		(216,413	)		(19,728,611	)		196,699,929
Shares outstanding at end of year		46,042,276			33,503,311			5,682,315			5,804,978			648,784,125			668,512,736
Open Shares
Shares outstanding at beginning of year		4,312,256			2,061,818			3,070,770			4,168,917			188,734,763			190,254,536
Shares sold		4,052,901			3,092,002			370,715			297,751			29,261,660			93,690,753
Shares issued to shareholders from reinvestment of distributions		54,762			28,007			43,090			43,795			7,994,866			1,465,197
Shares redeemed		(1,782,269	)		(869,571	)		(897,593	)		(1,439,693	)		(67,216,735	)		(96,675,723	)
Net increase (decrease)		2,325,394			2,250,438			(483,788	)		(1,098,147	)		(29,960,209	)		(1,519,773	)
Shares outstanding at end of year		6,637,650			4,312,256			2,586,982			3,070,770			158,774,554			188,734,763

Annual Report  117

	Lazard Developing Markets Equity Portfolio						Lazard Emerging Markets Equity Blend Portfolio
	Year Ended December 31, 2011			Year Ended December 31, 2010			Year Ended December 31, 2011			Period Ended December 31, 2010 (a)
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	768,811		$	(93,680	)	$	1,302,934		$	(23,618	)
Net realized gain (loss) on investments, options, swap agreements, foreign currency and forward currency contracts		218,300			13,355,744			(5,213,592	)		448,609
Net change in unrealized appreciation (depreciation) on investments, options, swap agreements, foreign currency and forward currency contracts		(75,233,479	)		8,697,741			(20,917,779	)		2,345,247
Net increase (decrease) in net assets resulting from operations		(74,246,368	)		21,959,805			(24,828,437	)		2,770,238
Distributions to shareholders
From net investment income
Institutional Shares		—			(312,586	)		(696,096	)		—
Open Shares		—			(40,615	)		(103,924	)		—
From net realized gains
Institutional Shares		(7,111,703	)		(6,060,192	)		(434,860	)		(70,487	)
Open Shares		(2,840,044	)		(7,936,710	)		(76,627	)		(11,530	)
Net decrease in net assets resulting from distributions		(9,951,747	)		(14,350,103	)		(1,311,507	)		(82,017	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		217,433,902			66,318,354			94,705,788			55,245,382
Open Shares		82,229,202			97,342,330			21,900,003			9,040,801
Net proceeds from reinvestment of distributions
Institutional Shares		6,399,337			5,794,490			1,011,504			65,828
Open Shares		2,738,730			7,451,122			154,425			8,599
Cost of shares redeemed
Institutional Shares		(78,772,507	)		(22,612,052	)		(43,724,613	)		(2,993,369	)
Open Shares		(96,382,546	)		(50,508,821	)		(4,197,007	)		(109,745	)
Net increase in net assets from capital stock transactions		133,646,118			103,785,423			69,850,100			61,257,496
Redemption fees (Note 2(k))
Institutional Shares		10,653			1,866			2,295			931
Open Shares		15,749			7,416			2,633			307
Net increase in net assets from redemption fees		26,402			9,282			4,928			1,238
Total increase in net assets		49,474,405			111,404,407			43,715,084			63,946,955
Net assets at beginning of period		174,382,026			62,977,619			63,946,955			—
Net assets at end of period*	$	223,856,431		$	174,382,026		$	107,662,039		$	63,946,955
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	(75,454	)	$	(510,910	)	$	21,088		$	(165,475	)
(a) Portfolio commenced operations on May 28, 2010.
(b) Portfolio commenced operations on March 31, 2011.
(c) Portfolio commenced operations on February 28, 2011.
(d) For the period June 1, 2011 to December 31, 2011. The Portfolio has changed its fiscal year end to December 31, 2011.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		4,815,473			1,517,818			4,402,117			—
Shares sold		15,748,244			4,360,301			8,327,731			4,641,041
Shares issued to shareholders from reinvestment of distributions		585,174			395,696			99,892			5,378
Shares redeemed		(6,129,181	)		(1,458,342	)		(4,123,236	)		(244,302	)
Net increase		10,204,237			3,297,655			4,304,387			4,402,117
Shares outstanding at end of period		15,019,710			4,815,473			8,706,504			4,402,117
Open Shares
Shares outstanding at beginning of period		6,698,626			3,258,336			733,742			—
Shares sold		5,937,465			6,618,781			1,948,997			742,112
Shares issued to shareholders from reinvestment of distributions		250,052			505,715			15,256			704
Shares redeemed		(6,950,174	)		(3,684,206	)		(385,652	)		(9,074	)
Net increase (decrease)		(762,657	)		3,440,290			1,578,601			733,742
Shares outstanding at end of period		5,935,969			6,698,626			2,312,343			733,742

(e)  The inception date for Institutional Shares was September 26, 2011.

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

118  Annual Report

	Lazard Emerging Markets Multi-Strategy Portfolio			Lazard Emerging Markets Debt Portfolio			Lazard U.S. Realty Income Portfolio
	Period Ended December 31, 2011 (b)			Period Ended December 31, 2011 (c)			Period Ended December 31, 2011 (d)			Year Ended May 31, 2011
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	423,369		$	1,547,264		$	692,682		$	466,452
Net realized gain (loss) on investments, options, swap agreements, foreign currency and forward currency contracts		(1,559,379	)		(163,912	)		(322,300	)		2,143,304
Net change in unrealized appreciation (depreciation) on investments, options, swap agreements, foreign currency and forward currency contracts		(4,433,010	)		(841,177	)		(702,514	)		858,063
Net increase (decrease) in net assets resulting from operations		(5,569,020	)		542,175			(332,132	)		3,467,819
Distributions to shareholders
From net investment income
Institutional Shares		(334,780	)		(2,116,437	)		(246,537	)		—
Open Shares		(695	)		(4,138	)		(330,886	)		(978,491	)
From net realized gains
Institutional Shares		—			(60,732	)		(165,398	)		—
Open Shares		—			(73	)		(1,148,069	)		(2,048,235	)
Net decrease in net assets resulting from distributions		(335,475	)		(2,181,380	)		(1,890,890	)		(3,026,726	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		69,298,619			112,425,717			18,654,084			—
Open Shares		311,534			127,708			3,511,632			12,576,304
Net proceeds from reinvestment of distributions
Institutional Shares		216,928			2,052,208			405,885			—
Open Shares		600			4,211			1,041,199			2,639,311
Cost of shares redeemed
Institutional Shares		(7,101,793	)		(6,029,330	)		(3,045	)		—
Open Shares		(32,386	)		—			(11,361,563	)		(9,693,147	)
Net increase in net assets from capital stock transactions		62,693,502			108,580,514			12,248,192			5,522,468
Redemption fees (Note 2(k))
Institutional Shares		144			—			—			—
Open Shares		9			—			1,188			1,917
Net increase in net assets from redemption fees		153			—			1,188			1,917
Total increase in net assets		56,789,160			106,941,309			10,026,358			5,965,478
Net assets at beginning of period		—			—			15,829,816			9,864,338
Net assets at end of period*	$	56,789,160		$	106,941,309		$	25,856,174		$	15,829,816
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	(331,733	)	$	(677,099	)	$	—		$	—
(a) Portfolio commenced operations on May 28, 2010.
(b) Portfolio commenced operations on March 31, 2011.
(c) Portfolio commenced operations on February 28, 2011.
(d) For the period June 1, 2011 to December 31, 2011. The Portfolio has changed its fiscal year end to December 31, 2011.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		—			—			—	(e)		—
Shares sold		7,349,497			11,336,962			2,605,512			—
Shares issued to shareholders from reinvestment of distributions		25,461			207,193			54,927			—
Shares redeemed		(780,142	)		(594,966	)		(411	)		—
Net increase		6,594,816			10,949,189			2,660,028			—
Shares outstanding at end of period		6,594,816			10,949,189			2,660,028			—
Open Shares
Shares outstanding at beginning of period		—			—			1,395,477			915,068
Shares sold		33,957			12,706			437,397			1,117,539
Shares issued to shareholders from reinvestment of distributions		70			417			138,495			240,644
Shares redeemed		(3,510	)		—			(1,165,491	)		(877,774	)
Net increase (decrease)		30,517			13,123			(589,599	)		480,409
Shares outstanding at end of period		30,517			13,123			805,878			1,395,477

Annual Report  119

	Lazard U.S. Realty Equity Portfolio						Lazard International Realty Equity Portfolio
	Period Ended December 31, 2011 (a)			Year Ended May 31, 2011			Period Ended December 31, 2011 (a)			Year Ended May 31, 2011
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	29,627		$	(15,145	)	$	8,105		$	16,063
Net realized gain (loss) on investments, options, swap agreements, foreign currency and forward currency contracts		233,648			472,038			(63,550	)		120,268
Net change in unrealized appreciation (depreciation) on investments, options, swap agreements, foreign currency and forward currency contracts		(661,411	)		592,626			(404,282	)		266,071
Net increase (decrease) in net assets resulting from operations		(398,136	)		1,049,519			(459,727	)		402,402
Distributions to shareholders
From net investment income
Institutional Shares		(10,686	)		—			(34,441	)		—
Open Shares		(4,322	)		(6,933	)		(38,933	)		(53,420	)
From net realized gains
Institutional Shares		(319,969	)		—			(15,206	)		—
Open Shares		(270,611	)		(382,789	)		(11,959	)		(111,841	)
Net decrease in net assets resulting from distributions		(605,588	)		(389,722	)		(100,539	)		(165,261	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		1,305,500			—			2,000,000			—
Open Shares		263,978			2,186,269			71,663			142,650
Net proceeds from reinvestment of distributions
Institutional Shares		330,655			—			49,648			—
Open Shares		272,510			383,042			44,345			153,750
Cost of shares redeemed
Institutional Shares		—			—			—			—
Open Shares		(3,359,846	)		(840,513	)		(740,648	)		(244,274	)
Net increase (decrease) in net assets from capital stock transactions		(1,187,203	)		1,728,798			1,425,008			52,126
Redemption fees (Note 2(k))
Institutional Shares		—			—			—			—
Open Shares		1,457			406			—			192
Net increase in net assets from redemption fees		1,457			406			—			192
Total increase (decrease) in net assets		(2,189,470	)		2,389,001			864,742			289,459
Net assets at beginning of period		4,852,040			2,463,039			1,716,377			1,426,918
Net assets at end of period*	$	2,662,570		$	4,852,040		$	2,581,119		$	1,716,377
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	—		$	—		$	(26,911	)	$	21,203
(a) For the period June 1, 2011 to December 31, 2011. The Portfolio has changed its fiscal year end to December 31, 2011.
(b) Portfolio commenced operations on February 28, 2011.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		—	(c)		—			—	(c)		—
Shares sold		80,121			—			153,406			—
Shares issued to shareholders from reinvestment of distributions		22,305			—			3,823			—
Shares redeemed		—			—			—			—
Net increase		102,426			—			157,229			—
Shares outstanding at end of period		102,426			—			157,229			—
Open Shares
Shares outstanding at beginning of period		248,909			147,836			101,112			98,126
Shares sold		15,910			126,411			4,906			8,520
Shares issued to shareholders from reinvestment of distributions		18,351			23,089			3,382			9,479
Shares redeemed		(206,924	)		(48,427	)		(54,595	)		(15,013	)
Net increase (decrease)		(172,663	)		101,073			(46,307	)		2,986
Shares outstanding at end of period		76,246			248,909			54,805			101,112

(c)  The inception date for Institutional Shares was September 26, 2011.

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

120  Annual Report

	Lazard U.S. High Yield Portfolio						Lazard U.S. Municipal Portfolio			Lazard Capital Allocator Opportunistic Strategies Portfolio
	Year Ended December 31, 2011			Year Ended December 31, 2010			Period Ended December 31, 2011 (b)			Year Ended December 31, 2011			Year Ended December 31, 2010
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$	10,726,159		$	8,037,397		$	174,858		$	3,161,113		$	2,861,801
Net realized gain (loss) on investments, options, swap agreements, foreign currency and forward currency contracts		2,052,076			1,545,110			(34,936	)		28,152,296			13,319,211
Net change in unrealized appreciation (depreciation) on investments, options, swap agreements, foreign currency and forward currency contracts		(5,269,974	)		2,454,171			330,476			(37,418,891	)		13,009,902
Net increase (decrease) in net assets resulting from operations		7,508,261			12,036,678			470,398			(6,105,482	)		29,190,914
Distributions to shareholders
From net investment income
Institutional Shares		(9,400,123	)		(6,590,797	)		(173,726	)		(3,523,669	)		(2,908,206	)
Open Shares		(1,330,150	)		(1,446,983	)		(1,432	)		(59,701	)		(65,569	)
From net realized gains
Institutional Shares		—			—			(48,209	)		(6,713,946	)		—
Open Shares		—			—			(429	)		(154,961	)		—
Net decrease in net assets resulting from distributions		(10,730,273	)		(8,037,780	)		(223,796	)		(10,452,277	)		(2,973,775	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		57,646,994			42,673,187			11,938,179			113,697,161			62,446,688
Open Shares		14,541,009			26,839,805			99,000			3,431,907			4,930,645
Net proceeds from reinvestment of distributions
Institutional Shares		7,284,236			4,407,235			209,652			4,208,402			1,420,474
Open Shares		1,235,788			1,367,239			1,860			200,236			54,295
Cost of shares redeemed
Institutional Shares		(23,312,985	)		(25,372,482	)		(798,710	)		(82,327,061	)		(46,165,900	)
Open Shares		(29,989,819	)		(8,917,586	)		—			(4,278,584	)		(15,133,445	)
Net increase (decrease) in net assets from capital stock transactions		27,405,223			40,997,398			11,449,981			34,932,061			7,552,757
Redemption fees (Note 2(k))
Institutional Shares		3,520			1,941			3			2,220			767
Open Shares		445			862			—			395			84
Net increase in net assets from redemption fees		3,965			2,803			3			2,615			851
Total increase (decrease) in net assets		24,187,176			44,999,099			11,696,586			18,376,917			33,770,747
Net assets at beginning of period		138,693,189			93,694,090			—			246,565,803			212,795,056
Net assets at end of period*	$	162,880,365		$	138,693,189		$	11,696,586		$	264,942,720		$	246,565,803
* Includes undistributed (distributions in excess of) net investment income (loss) of	$	(128,289	)	$	(182,300	)	$	(300	)	$	(2,213,504	)	$	(113,014	)
(a) For the period June 1, 2011 to December 31, 2011. The Portfolio has changed its fiscal year end to December 31, 2011.
(b) Portfolio commenced operations on February 28, 2011.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		23,045,185			18,619,657			—			24,035,924			22,278,416
Shares sold		11,937,663			8,879,105			1,190,953			11,657,534			6,796,364
Shares issued to shareholders from reinvestment of distributions		1,505,072			919,525			20,653			457,708			143,914
Shares redeemed		(4,843,287	)		(5,373,102	)		(78,701	)		(8,196,392	)		(5,182,770	)
Net increase		8,599,448			4,425,528			1,132,905			3,918,850			1,757,508
Shares outstanding at end of period		31,644,633			23,045,185			1,132,905			27,954,774			24,035,924
Open Shares
Shares outstanding at beginning of period		5,357,420			1,295,343			—			718,711			1,914,353
Shares sold		2,973,657			5,635,385			9,900			341,942			535,756
Shares issued to shareholders from reinvestment of distributions		251,073			283,468			183			21,789			5,484
Shares redeemed		(6,165,243	)		(1,856,776	)		—			(422,357	)		(1,736,882	)
Net increase (decrease)		(2,940,513	)		4,062,077			10,083			(58,626	)		(1,195,642	)
Shares outstanding at end of period		2,416,907			5,357,420			10,083			660,085			718,711

Annual Report  121

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
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Institutional Shares
Net asset value, beginning of year	$	9.56		$	8.62		$	7.00		$	11.25		$	11.73
Income (loss) from investment operations:
Net investment income (a)		0.15			0.10			0.12			0.18			0.17
Net realized and unrealized gain (loss)		(0.30	)		0.93			1.62			(4.26	)		0.05
Total from investment operations		(0.15	)		1.03			1.74			(4.08	)		0.22
Less distributions from:
Net investment income		(0.17	)		(0.09	)		(0.12	)		(0.17	)		(0.15	)
Net realized gains		—			—			—			—			(0.55	)
Total distributions		(0.17	)		(0.09	)		(0.12	)		(0.17	)		(0.70	)
Redemption fees		—	(c)		—	(c)		—			—			—	(c)
Net asset value, end of year	$	9.24		$	9.56		$	8.62		$	7.00		$	11.25
Total Return (b)		–1.47	%		12.00	%		24.81	%		–36.18	%		1.65	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	11,108		$	13,066		$	8,464		$	6,554		$	8,488
Ratios to average net assets:
Net expenses		0.75	%		0.97	%		1.00	%		1.00	%		1.00	%
Gross expenses		2.27	%		2.76	%		3.44	%		3.21	%		3.56	%
Net investment income		1.59	%		1.19	%		1.60	%		1.90	%		1.40	%
Portfolio turnover rate		53	%		53	%		62	%		97	%		83	%
Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Open Shares
Net asset value, beginning of year	$	9.61		$	8.67		$	7.04		$	11.31		$	11.77
Income (loss) from investment operations:
Net investment income (a)		0.12			0.08			0.09			0.15			0.13
Net realized and unrealized gain (loss)		(0.29	)		0.93			1.64			(4.28	)		0.06
Total from investment operations		(0.17	)		1.01			1.73			(4.13	)		0.19
Less distributions from:
Net investment income		(0.14	)		(0.07	)		(0.10	)		(0.14	)		(0.11	)
Net realized gains		—			—			—			—			(0.55	)
Total distributions		(0.14	)		(0.07	)		(0.10	)		(0.14	)		(0.66	)
Redemption fees		—	(c)		—			—	(c)		—			0.01
Net asset value, end of year	$	9.30		$	9.61		$	8.67		$	7.04		$	11.31
Total Return (b)		–1.77	%		11.62	%		24.49	%		–36.43	%		1.59	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	312		$	294		$	300		$	134		$	341
Ratios to average net assets:
Net expenses		1.05	%		1.27	%		1.30	%		1.30	%		1.30	%
Gross expenses		6.49	%		7.28	%		5.52	%		12.10	%		9.40	%
Net investment income		1.30	%		0.88	%		1.15	%		1.56	%		1.02	%
Portfolio turnover rate		53	%		53	%		62	%		97	%		83	%

(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.

122  Annual Report

LAZARD U.S. STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Institutional Shares
Net asset value, beginning of year	$	8.97		$	8.02		$	6.26		$	10.03		$	11.81
Income (loss) from investment operations:
Net investment income (a)		0.12			0.07			0.08			0.12			0.11
Net realized and unrealized gain (loss)		0.02			0.97			1.68			(3.65	)		(0.04	)
Total from investment operations		0.14			1.04			1.76			(3.53	)		0.07
Less distributions from:
Net investment income		(0.08	)		(0.09	)		—			(0.12	)		(0.12	)
Net realized gains		—			—			—			(0.12	)		(1.73	)
Total distributions		(0.08	)		(0.09	)		—			(0.24	)		(1.85	)
Redemption fees		—	(c)		—	(c)		—			—			0.00
Net asset value, end of year	$	9.03		$	8.97		$	8.02		$	6.26		$	10.03
Total Return (b)		1.65	%		13.13	%		28.12	%		–35.43	%		0.33	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	64,239		$	71,207		$	66,153		$	54,749		$	88,242
Ratios to average net assets:
Net expenses		0.75	%		1.01	%		1.05	%		1.05	%		0.98	%
Gross expenses		1.00	%		1.06	%		1.09	%		1.06	%		0.98	%
Net investment income		1.29	%		0.88	%		1.26	%		1.45	%		0.86	%
Portfolio turnover rate		48	%		49	%		76	%		82	%		58	%
Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Open Shares
Net asset value, beginning of year	$	8.97		$	8.02		$	6.28		$	10.05		$	11.83
Income (loss) from investment operations:
Net investment income (a)		0.09			0.05			0.07			0.10			0.06
Net realized and unrealized gain (loss)		0.03			0.97			1.67			(3.65	)		(0.03	)
Total from investment operations		0.12			1.02			1.74			(3.55	)		0.03
Less distributions from:
Net investment income		(0.05	)		(0.07	)		—			(0.10	)		(0.08	)
Net realized gains		—			—			—			(0.12	)		(1.73	)
Total distributions		(0.05	)		(0.07	)		—			(0.22	)		(1.81	)
Redemption fees		—			—	(c)		—			—			—	(c)
Net asset value, end of year	$	9.04		$	8.97		$	8.02		$	6.28		$	10.05
Total Return (b)		1.42	%		12.79	%		27.71	%		–35.63	%		–0.07	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	8,478		$	10,024		$	8,945		$	7,218		$	11,558
Ratios to average net assets:
Net expenses		1.05	%		1.31	%		1.35	%		1.35	%		1.35	%
Gross expenses		1.36	%		1.44	%		1.39	%		1.51	%		1.40	%
Net investment income		0.99	%		0.59	%		0.96	%		1.15	%		0.50	%
Portfolio turnover rate		48	%		49	%		76	%		82	%		58	%

(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  123

LAZARD U.S. MID CAP EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Institutional Shares
Net asset value, beginning of year	$	12.61		$	10.31		$	7.50		$	12.46		$	14.41
Income (loss) from investment operations:
Net investment income (a)		0.05			0.10			0.08			0.15			0.12
Net realized and unrealized gain (loss)		(0.75	)		2.31			2.81			(4.93	)		(0.51	)
Total from investment operations		(0.70	)		2.41			2.89			(4.78	)		(0.39	)
Less distributions from:
Net investment income		(0.04	)		(0.11	)		(0.08	)		(0.18	)		(0.11	)
Net realized gains		—			—			—			—			(1.45	)
Total distributions		(0.04	)		(0.11	)		(0.08	)		(0.18	)		(1.56	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	11.87		$	12.61		$	10.31		$	7.50		$	12.46
Total Return (b)		–5.58	%		23.43	%		38.49	%		–38.33	%		–2.93	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	91,740		$	126,626		$	143,267		$	103,650		$	277,953
Ratios to average net assets:
Net expenses		0.93	%		0.91	%		0.91	%		0.89	%		0.87	%
Gross expenses		0.93	%		0.91	%		0.91	%		0.89	%		0.87	%
Net investment income		0.37	%		0.90	%		0.90	%		1.41	%		0.81	%
Portfolio turnover rate		83	%		75	%		77	%		81	%		100	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Open Shares
Net asset value, beginning of year	$	12.45		$	10.18		$	7.40		$	12.29		$	14.23
Income (loss) from investment operations:
Net investment income (a)		0.01			0.07			0.05			0.13			0.09
Net realized and unrealized gain (loss)		(0.74	)		2.28			2.78			(4.87	)		(0.51	)
Total from investment operations		(0.73	)		2.35			2.83			(4.74	)		(0.42	)
Less distributions from:
Net investment income		—	(c)		(0.08	)		(0.05	)		(0.15	)		(0.07	)
Net realized gains		—			—			—			—			(1.45	)
Total distributions		—			(0.08	)		(0.05	)		(0.15	)		(1.52	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	11.72		$	12.45		$	10.18		$	7.40		$	12.29
Total Return (b)		–5.84	%		23.09	%		38.26	%		–38.53	%		–3.17	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	52,048		$	69,551		$	69,737		$	64,372		$	158,062
Ratios to average net assets:
Net expenses		1.19	%		1.17	%		1.17	%		1.15	%		1.13	%
Gross expenses		1.19	%		1.17	%		1.17	%		1.15	%		1.13	%
Net investment income		0.11	%		0.66	%		0.64	%		1.17	%		0.58	%
Portfolio turnover rate		83	%		75	%		77	%		81	%		100	%

(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.

124   Annual Report

LAZARD U.S. SMALL-MID CAP EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Institutional Shares
Net asset value, beginning of year	$	14.55		$	11.80		$	7.59		$	11.58		$	14.44
Income (loss) from investment operations:
Net investment income (loss) (a)		0.01			0.09			(0.01	)		0.01			0.04
Net realized and unrealized gain (loss)		(1.45	)		2.70			4.22			(4.00	)		(0.87	)
Total from investment operations		(1.44	)		2.79			4.21			(3.99	)		(0.83	)
Less distributions from:
Net investment income		—			(0.04	)		—			—			(0.04	)
Net realized gains		(1.29	)		—			—			—			(1.99	)
Total distributions		(1.29	)		(0.04	)		—			—			(2.03	)
Redemption fees		—	(c)		—	(c)		—			—	(c)		—	(c)
Net asset value, end of year	$	11.82		$	14.55		$	11.80		$	7.59		$	11.58
Total Return (b)		–9.83	%		23.67	%		55.47	%		–34.46	%		–6.38	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	167,042		$	238,901		$	56,042		$	36,934		$	109,853
Ratios to average net assets:
Net expenses		0.90	%		1.00	%		1.22	%		1.13	%		0.93	%
Gross expenses		0.90	%		1.00	%		1.23	%		1.13	%		0.93	%
Net investment income (loss)		0.08	%		0.68	%		-0.12	%		0.08	%		0.24	%
Portfolio turnover rate		110	%		114	%		195	%		138	%		98	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Open Shares
Net asset value, beginning of year	$	14.26		$	11.56		$	7.46		$	11.43		$	14.27
Income (loss) from investment operations:
Net investment income (loss) (a)		(0.03	)		0.03			(0.04	)		(0.03	)		(0.01	)
Net realized and unrealized gain (loss)		(1.42	)		2.67			4.14			(3.94	)		(0.84	)
Total from investment operations		(1.45	)		2.70			4.10			(3.97	)		(0.85	)
Less distributions from:
Net investment income		—			—			—			—			—
Net realized gains		(1.29	)		—			—			—			(1.99	)
Total distributions		(1.29	)		—			—			—			(1.99	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	11.52		$	14.26		$	11.56		$	7.46		$	11.43
Total Return (b)		–10.09	%		23.36	%		54.96	%		–34.73	%		–6.60	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	20,039		$	21,620		$	19,531		$	10,500		$	25,203
Ratios to average net assets:
Net expenses		1.21	%		1.34	%		1.51	%		1.49	%		1.25	%
Gross expenses		1.21	%		1.34	%		1.52	%		1.49	%		1.25	%
Net investment income (loss)		–0.23	%		0.21	%		–0.40	%		–0.26	%		–0.07	%
Portfolio turnover rate		110	%		114	%		195	%		138	%		98	%

(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   125

LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended						Period Ended 12/31/09*
	12/31/11			12/31/10
Institutional Shares
Net asset value, beginning of period	$	10.31		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.33			0.30			—	(c)
Net realized and unrealized gain (loss)		(0.48	)		0.34			—
Total from investment operations		(0.15	)		0.64			—	(c)
Less distributions from:
Net investment income		(0.15	)		(0.23	)		—
Net realized gains		(0.23	)		(0.10	)		—
Total distributions		(0.38	)		(0.33	)		—
Redemption fees		—	(c)		—	(c)		—
Net asset value, end of period	$	9.78		$	10.31		$	10.00
Total Return (b)		–1.55	%		6.63	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	104,439		$	115,680		$	74
Ratios to average net assets:
Net expenses (d)		1.09	%		1.30	%		1.30	%
Gross expenses (d)		1.09	%		1.35	%		1,825.00	%(e)
Net investment income (d)		3.15	%		3.01	%		1.30	%
Portfolio turnover rate		135	%		46	%		0	%
Selected data for a share of capital stock outstanding throughout each period	Year Ended						Period Ended 12/31/09*
	12/31/11			12/31/10
Open Shares
Net asset value, beginning of period	$	10.34		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.28			0.24			—	(c)
Net realized and unrealized gain (loss)		(0.49	)		0.38			—
Total from investment operations		(0.21	)		0.62			—	(c)
Less distributions from:
Net investment income		(0.12	)		(0.18	)		—
Net realized gains		(0.23	)		(0.10	)		—
Total distributions		(0.35	)		(0.28	)		—
Redemption fees		—	(c)		—			—
Net asset value, end of period	$	9.78		$	10.34		$	10.00
Total Return (b)		–1.95	%		6.28	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	8,359		$	118		$	50
Ratios to average net assets:
Net expenses (d)		1.60	%		1.60	%		1.60	%
Gross expenses (d)		1.67	%		18.06	%		1,825.00	%(e)
Net investment income (loss) (d)		2.81	%		2.37	%		–1.60	%
Portfolio turnover rate		135	%		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. A period of less than one year is not annualized.
(c)	Amount is less than $0.01 per share.
(d)	Annualized for a period of less than one year.
(e)	Gross expense ratio was the result of the Portfolio being in existence for one day during the period ended 12/31/09.

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

126   Annual Report

LAZARD INTERNATIONAL EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Institutional Shares
Net asset value, beginning of year	$	13.81		$	13.14		$	10.50		$	17.55		$	16.31
Income (loss) from investment operations:
Net investment income (a)		0.27			0.21			0.26			0.36			0.36
Net realized and unrealized gain (loss)		(1.25	)		0.82			2.38			(7.00	)		1.42
Total from investment operations		(0.98	)		1.03			2.64			(6.64	)		1.78
Less distributions from:
Net investment income		(0.34	)		(0.36	)		—	(c)		(0.41	)		(0.54	)
Total distributions		(0.34	)		(0.36	)		—	(c)		(0.41	)		(0.54	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	12.49		$	13.81		$	13.14		$	10.50		$	17.55
Total Return (b)		–7.17	%		8.04	%		25.19	%		–37.75	%		10.96	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	86,880		$	127,485		$	139,070		$	119,870		$	335,323
Ratios to average net assets:
Net expenses		1.03	%		0.98	%		0.99	%		0.93	%		0.89	%
Gross expenses		1.03	%		0.98	%		0.99	%		0.93	%		0.89	%
Net investment income		1.99	%		1.63	%		2.33	%		2.47	%		2.08	%
Portfolio turnover rate		39	%		53	%		66	%		44	%		50	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Open Shares
Net asset value, beginning of year	$	13.91		$	13.24		$	10.60		$	17.69		$	16.40
Income (loss) from investment operations:
Net investment income (a)		0.24			0.16			0.22			0.31			0.32
Net realized and unrealized gain (loss)		(1.26	)		0.83			2.42			(7.04	)		1.41
Total from investment operations		(1.02	)		0.99			2.64			(6.73	)		1.73
Less distributions from:
Net investment income		(0.30	)		(0.32	)		—			(0.36	)		(0.44	)
Total distributions		(0.30	)		(0.32	)		—			(0.36	)		(0.44	)
Redemption fees		—	(c)		—	(c)		—			—	(c)		—	(c)
Net asset value, end of year	$	12.59		$	13.91		$	13.24		$	10.60		$	17.69
Total Return (b)		–7.42	%		7.65	%		24.91	%		–37.98	%		10.57	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	18,699		$	28,670		$	19,520		$	14,829		$	32,449
Ratios to average net assets:
Net expenses		1.33	%		1.29	%		1.27	%		1.28	%		1.19	%
Gross expenses		1.33	%		1.29	%		1.27	%		1.28	%		1.19	%
Net investment income		1.78	%		1.25	%		1.98	%		2.16	%		1.89	%
Portfolio turnover rate		39	%		53	%		66	%		44	%		50	%

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

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

Annual Report  127

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Institutional Shares
Net asset value, beginning of year	$	7.99		$	7.70		$	6.39		$	11.78		$	13.07
Income (loss) from investment operations:
Net investment income (a)		0.13			0.14			0.17			0.30			0.22
Net realized and unrealized gain (loss)		(0.70	)		0.49			1.16			(4.73	)		0.97
Total from investment operations		(0.57	)		0.63			1.33			(4.43	)		1.19
Less distributions from:
Net investment income		(0.24	)		(0.34	)		(0.02	)		(0.33	)		(0.25	)
Net realized gains		—			—			—			(0.63	)		(2.23	)
Total distributions		(0.24	)		(0.34	)		(0.02	)		(0.96	)		(2.48	)
Redemption fees		—	(c)		—			—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	7.18		$	7.99		$	7.70		$	6.39		$	11.78
Total Return (b)		–7.14	%		8.49	%		20.86	%		–38.74	%		9.25	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	4,519		$	3,614		$	3,925		$	3,860		$	12,103
Ratios to average net assets:
Net expenses		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses		4.66	%		5.08	%		3.46	%		2.24	%		1.67	%
Net investment income		1.72	%		1.80	%		2.52	%		3.06	%		1.58	%
Portfolio turnover rate		55	%		75	%		67	%		52	%		50	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Open Shares
Net asset value, beginning of year	$	8.02		$	7.72		$	6.41		$	11.81		$	13.10
Income (loss) from investment operations:
Net investment income (a)		0.11			0.12			0.14			0.26			0.16
Net realized and unrealized gain (loss)		(0.72	)		0.49			1.17			(4.73	)		0.99
Total from investment operations		(0.61	)		0.61			1.31			(4.47	)		1.15
Less distributions from:
Net investment income		(0.21	)		(0.31	)		—	(c)		(0.30	)		(0.21	)
Net realized gains		—			—			—			(0.63	)		(2.23	)
Total distributions		(0.21	)		(0.31	)		—	(c)		(0.93	)		(2.44	)
Redemption fees		—			—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	7.20		$	8.02		$	7.72		$	6.41		$	11.81
Total Return (b)		–7.41	%		8.29	%		20.49	%		–39.00	%		8.92	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	2,463		$	3,056		$	4,530		$	5,853		$	13,916
Ratios to average net assets:
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Gross expenses		5.12	%		5.31	%		3.62	%		2.47	%		1.95	%
Net investment income		1.43	%		1.56	%		2.11	%		2.67	%		1.21	%
Portfolio turnover rate		55	%		75	%		67	%		52	%		50	%

(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.

128  Annual Report

LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Institutional Shares
Net asset value, beginning of year	$	10.63		$	9.41		$	7.51		$	12.92		$	12.66
Income (loss) from investment operations:
Net investment income (a)		0.16			0.13			0.20			0.26			0.23
Net realized and unrealized gain (loss)		(1.19	)		1.22			1.88			(5.43	)		1.36
Total from investment operations		(1.03	)		1.35			2.08			(5.17	)		1.59
Less distributions from:
Net investment income		(0.14	)		(0.13	)		(0.18	)		(0.22	)		(0.25	)
Net realized gains		—			—			—			(0.02	)		(1.08	)
Total distributions		(0.14	)		(0.13	)		(0.18	)		(0.24	)		(1.33	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	9.46		$	10.63		$	9.41		$	7.51		$	12.92
Total Return (b)		–9.70	%		14.43	%		27.76	%		–39.98	%		12.88	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	435,411		$	356,098		$	311,570		$	245,604		$	418,584
Ratios to average net assets:
Net expenses		0.88	%		0.90	%		0.91	%		0.90	%		0.88	%
Gross expenses		0.88	%		0.90	%		0.91	%		0.90	%		0.88	%
Net investment income		1.53	%		1.30	%		2.42	%		2.48	%		1.70	%
Portfolio turnover rate		53	%		55	%		129	%		72	%		84	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Open Shares
Net asset value, beginning of year	$	10.68		$	9.43		$	7.51		$	12.90		$	12.64
Income (loss) from investment operations:
Net investment income (a)		0.13			0.09			0.16			0.23			0.17
Net realized and unrealized gain (loss)		(1.20	)		1.24			1.90			(5.42	)		1.37
Total from investment operations		(1.07	)		1.33			2.06			(5.19	)		1.54
Less distributions from:
Net investment income		(0.08	)		(0.08	)		(0.14	)		(0.18			(0.20	)
Net realized gains		—			—			—			(0.02	)		(1.08	)
Total distributions		(0.08	)		(0.08	)		(0.14	)		(0.20	)		(1.28	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—
Net asset value, end of year	$	9.53		$	10.68		$	9.43		$	7.51		$	12.90
Total Return (b)		–10.01	%		14.09	%		27.38	%		–40.18	%		12.37	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	63,280		$	46,051		$	19,446		$	13,627		$	16,342
Ratios to average net assets:
Net expenses		1.16	%		1.20	%		1.21	%		1.24	%		1.28	%
Gross expenses		1.16	%		1.20	%		1.21	%		1.24	%		1.28	%
Net investment income		1.26	%		0.89	%		1.98	%		2.23	%		1.29	%
Portfolio turnover rate		53	%		55	%		129	%		72	%		84	%

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

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

Annual Report  129

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO
Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Institutional Shares
Net asset value, beginning of year	$	8.12		$	6.68		$	4.80		$	10.49		$	17.80
Income (loss) from investment operations:
Net investment income (a)		0.13			0.10			0.08			0.15			0.27
Net realized and unrealized gain (loss)		(1.27	)		1.45			1.80			(5.19	)		(1.20	)
Total from investment operations		(1.14	)		1.55			1.88			(5.04	)		(0.93	)
Less distributions from:
Net investment income		(0.14	)		(0.11	)		—			(0.14	)		(0.63	)
Net realized gains		—			—			—			(0.51	)		(5.75	)
Total distributions		(0.14	)		(0.11	)		—			(0.65	)		(6.38	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	6.84		$	8.12		$	6.68		$	4.80		$	10.49
Total Return (b)		–14.11	%		23.55	%		39.17	%		–49.84	%		–4.61	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	38,879		$	47,134		$	40,243		$	74,640		$	129,725
Ratios to average net assets:
Net expenses		1.13	%		1.13	%		1.17	%		0.98	%		0.91	%
Gross expenses		1.17	%		1.21	%		1.21	%		0.98	%		0.91	%
Net investment income		1.65	%		1.39	%		1.55	%		1.81	%		1.48	%
Portfolio turnover rate		28	%		41	%		51	%		61	%		59	%
Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Open Shares
Net asset value, beginning of year	$	8.14		$	6.70		$	4.82		$	10.51		$	17.77
Income (loss) from investment operations:
Net investment income (a)		0.10			0.08			0.07			0.13			0.21
Net realized and unrealized gain (loss)		(1.26	)		1.45			1.81			(5.20	)		(1.17	)
Total from investment operations		(1.16	)		1.53			1.88			(5.07	)		(0.96	)
Less distributions from:
Net investment income		(0.12	)		(0.09	)		—			(0.11	)		(0.55	)
Net realized gains		—			—			—			(0.51	)		(5.75	)
Total distributions		(0.12	)		(0.09	)		—			(0.62	)		(6.30	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	6.86		$	8.14		$	6.70		$	4.82		$	10.51
Total Return (b)		–14.36	%		23.13	%		39.00	%		–50.02	%		–4.79	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	17,744		$	24,984		$	27,920		$	30,052		$	89,779
Ratios to average net assets:
Net expenses		1.43	%		1.43	%		1.43	%		1.31	%		1.20	%
Gross expenses		1.46	%		1.49	%		1.48	%		1.31	%		1.20	%
Net investment income		1.34	%		1.09	%		1.28	%		1.56	%		1.17	%
Portfolio turnover rate		28	%		41	%		51	%		61	%		59	%

(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.

130  Annual Report

LAZARD EMERGING MARKETS EQUITY PORTFOLIO
Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Institutional Shares
Net asset value, beginning of year	$	21.78		$	18.01		$	10.88		$	23.88		$	20.60
Income (loss) from investment operations:
Net investment income (a)		0.49			0.38			0.35			0.61			0.36
Net realized and unrealized gain (loss)		(4.36	)		3.71			7.24			(11.78	)		6.41
Total from investment operations		(3.87	)		4.09			7.59			(11.17	)		6.77
Less distributions from:
Net investment income		(0.63	)		(0.32	)		(0.46	)		(0.49	)		(0.29	)
Net realized gains		(0.48	)		—			—			(1.34	)		(3.20	)
Total distributions		(1.11	)		(0.32	)		(0.46	)		(1.83	)		(3.49	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	16.80		$	21.78		$	18.01		$	10.88		$	23.88
Total Return (b)		–17.75	%		22.81	%		69.82	%		–47.88	%		33.05	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	10,902,557		$	14,561,085		$	8,497,341		$	3,295,983		$	5,270,497
Ratios to average net assets:
Net expenses		1.12	%		1.14	%		1.15	%		1.17	%		1.20	%
Gross expenses		1.12	%		1.14	%		1.15	%		1.17	%		1.20	%
Net investment income		2.44	%		1.96	%		2.40	%		3.16	%		1.51	%
Portfolio turnover rate		23	%		23	%		49	%		43	%		53	%
Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Open Shares
Net asset value, beginning of year	$	22.19		$	18.28		$	11.05		$	24.17		$	20.82
Income (loss) from investment operations:
Net investment income (a)		0.49			0.34			0.29			0.52			0.29
Net realized and unrealized gain (loss)		(4.50	)		3.76			7.35			(11.87	)		6.47
Total from investment operations		(4.01	)		4.10			7.64			(11.35	)		6.76
Less distributions from:
Net investment income		(0.50	)		(0.19	)		(0.41	)		(0.43	)		(0.22	)
Net realized gains		(0.48	)		—			—			(1.34	)		(3.20	)
Total distributions		(0.98	)		(0.19	)		(0.41	)		(1.77	)		(3.42	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		0.01
Net asset value, end of year	$	17.20		$	22.19		$	18.28		$	11.05		$	24.17
Total Return (b)		–18.02	%		22.43	%		69.14	%		–48.09	%		32.71	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	2,731,646		$	4,187,207		$	3,478,654		$	1,135,042		$	1,467,458
Ratios to average net assets:
Net expenses		1.42	%		1.49	%		1.55	%		1.53	%(d)		1.47	%(d)
Gross expenses		1.42	%		1.49	%		1.55	%		1.54	%		1.48	%
Net investment income		2.18	%		1.73	%		1.94	%		2.72	%		1.19	%
Portfolio turnover rate		23	%		23	%		49	%		43	%		53	%

(a)	Net investment income has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any.
(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  131

LAZARD DEVELOPING MARKETS EQUITY PORTFOLIO
Selected data for a share of capital stock outstanding throughout each period	Year Ended									For the Period 9/30/08* to 12/31/08
	12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	15.12		$	13.18		$	6.54		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.06			0.02			0.01			0.01
Net realized and unrealized gain (loss)		(4.00	)		3.63			7.09			(3.46	)
Total from investment operations		(3.94	)		3.65			7.10			(3.45	)
Less distributions from:
Net investment income		—			(0.09	)		(0.04	)		(0.01	)
Net realized gains		(0.50	)		(1.62	)		(0.42	)		—
Total distributions		(0.50	)		(1.71	)		(0.46	)		(0.01	)
Redemption fees		—	(c)		—	(c)		—	(c)		—
Net asset value, end of period	$	10.68		$	15.12		$	13.18		$	6.54
Total Return (b)		–26.15	%		28.62	%		108.53	%		–34.54	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	160,441		$	72,798		$	20,002		$	6,539
Ratios to average net assets:
Net expenses (d)		1.30	%		1.30	%		1.30	%		1.30	%
Gross expenses (d)		1.30	%		1.67	%		2.81	%		11.98	%
Net investment income (d)		0.45	%		0.15	%		0.07	%		0.34	%
Portfolio turnover rate		68	%		112	%		96	%		72	%
Selected data for a share of capital stock outstanding throughout each period	Year Ended									For the Period 9/30/08* to 12/31/08
	12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	15.16		$	13.19		$	6.55		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.01			(0.05	)		(0.08	)		—	(c)
Net realized and unrealized gain (loss)		(3.99	)		3.65			7.13			(3.45	)
Total from investment operations		(3.98	)		3.60			7.05			(3.45	)
Less distributions from:
Net investment income		—			(0.01	)		—	(c)		—
Net realized gains		(0.50	)		(1.62	)		(0.42	)		—
Total distributions		(0.50	)		(1.63	)		(0.42	)		—
Redemption fees		—	(c)		—	(c)		0.01			—
Net asset value, end of period	$	10.68		$	15.16		$	13.19		$	6.55
Total Return (b)		–26.34	%		28.13	%		108.17	%		–34.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	63,415		$	101,584		$	42,975		$	357
Ratios to average net assets:
Net expenses (d)		1.60	%		1.60	%		1.60	%		1.60	%
Gross expenses (d)		1.62	%		1.85	%		2.54	%		28.95	%
Net investment income (loss) (d)		0.10	%		–0.33	%		–0.63	%		–0.09	%
Portfolio turnover rate		68	%		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.

132  Annual Report

LAZARD EMERGING MARKETS EQUITY BLEND PORTFOLIO
Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/11			For the Period 5/28/10* to 12/31/10
Institutional Shares
Net asset value, beginning of period	$	12.45		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.15			(0.01	)
Net realized and unrealized gain (loss)		(2.70	)		2.48
Total from investment operations		(2.55	)		2.47
Less distributions from:
Net investment income		(0.08	)		—
Net realized gains		(0.05	)		(0.02	)
Total distributions		(0.13	)		(0.02	)
Redemption fees		—	(c)		—	(c)
Net asset value, end of period	$	9.77		$	12.45
Total Return (b)		–20.43	%		24.66	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	85,091		$	54,826
Ratios to average net assets:
Net expenses (d)		1.35	%		1.35	%
Gross expenses (d)		1.54	%		6.24	%
Net investment income (loss) (d)		1.34	%		–0.16	%
Portfolio turnover rate		62	%		62	%
Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/11			For the Period 5/28/10* to 12/31/10
Open Shares
Net asset value, beginning of period	$	12.43		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.11			(0.05	)
Net realized and unrealized gain (loss)		(2.68	)		2.50
Total from investment operations		(2.57	)		2.45
Less distributions from:
Net investment income		(0.05	)		—
Net realized gains		(0.05	)		(0.02	)
Total distributions		(0.10	)		(0.02	)
Redemption fees		—	(c)		—	(c)
Net asset value, end of period	$	9.76		$	12.43
Total Return (b)		–20.74	%		24.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	22,571		$	9,121
Ratios to average net assets:
Net expenses (d)		1.65	%		1.65	%
Gross expenses (d)		1.92	%		6.06	%
Net investment income (loss) (d)		0.94	%		–0.70	%
Portfolio turnover rate		62	%		62	%

*	Portfolio commenced operations on May 28, 2010.
(a)	Net investment income (loss) has been computed using the average shares method.
(b)	Total returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager or State Street; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
(c)	Amount is less than $0.01 per share.
(d)	Annualized for a period of less than one year.

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

Annual Report  133

LAZARD EMERGING MARKETS MULTI-STRATEGY PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 3/31/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.09
Net realized and unrealized loss		(1.47	)
Total from investment operations		(1.38	)
Less distributions from:
Net investment income		(0.05	)
Total distributions		(0.05	)
Redemption fees		—	(c)
Net asset value, end of period	$	8.57
Total Return (b)		–13.79	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	56,527
Ratios to average net assets:
Net expenses (d)		1.30	%
Gross expenses (d)		2.23	%
Net investment income (d)		1.34	%
Portfolio turnover rate		98	%

Selected data for a share of capital stock outstanding throughout the period	For the Period 3/31/11* to 12/31/11
Open Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.07
Net realized and unrealized loss		(1.46	)
Total from investment operations		(1.39	)
Less distributions from:
Net investment income		(0.02	)
Total distributions		(0.02	)
Redemption fees		—	(c)
Net asset value, end of period	$	8.59
Total Return (b)		–13.67	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	262
Ratios to average net assets:
Net expenses (d)		1.60	%
Gross expenses (d)		16.96	%
Net investment income (d)		1.00	%
Portfolio turnover rate		98	%

*	Portfolio commenced operations on March 31, 2011.
(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, 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.

134  Annual Report

LAZARD EMERGING MARKETS DEBT PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 2/28/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.34
Net realized and unrealized loss		(0.17	)
Total from investment operations		0.17
Less distributions from:
Net investment income		(0.40	)
Net realized gains		(0.01	)
Total distributions		(0.41	)
Net asset value, end of period	$	9.76
Total Return (b)		1.64	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	106,813
Ratios to average net assets:
Net expenses (c)		1.04	%
Gross expenses (c)		1.67	%
Net investment income (c)		4.14	%
Portfolio turnover rate		108	%

Selected data for a share of capital stock outstanding throughout the period	For the Period 2/28/11* to 12/31/11
Open Shares
Net asset value, beginning of period	$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.33
Net realized and unrealized loss		(0.20	)
Total from investment operations		0.13
Less distributions from:
Net investment income		(0.35	)
Net realized gains		(0.01	)
Total distributions		(0.36	)
Net asset value, end of period	$	9.77
Total Return (b)		1.34	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	128
Ratios to average net assets:
Net expenses (c)		1.39	%
Gross expenses (c)		16.28	%
Net investment income (c)		3.84	%
Portfolio turnover rate		108	%

*	Portfolio commenced operations on February 28, 2011.
(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, 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)	Annualized for a period of less than one year.

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

Annual Report  135

LAZARD U.S. REALTY INCOME PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 9/26/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	9.73
Income from investment operations:
Net investment income (a)		0.16
Net realized and unrealized gain		0.55
Total from investment operations		0.71
Less distributions from:
Net investment income		(0.24	)
Net realized gains		(2.74	)
Total distributions		(2.98	)
Net asset value, end of period	$	7.46
Total Return (b)		9.71	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	19,849
Ratios to average net assets:
Net expenses (c)		1.15	%
Gross expenses (c)		2.31	%
Net investment income (c)		8.26	%
Portfolio turnover rate		89	%

	For the Period 6/1/11 to 12/31/11			Year Ended						For the Period 7/30/08** to 5/31/09
Selected data for a share of capital
stock outstanding throughout each period				5/31/11			5/31/10
Open Shares
Net asset value, beginning of period	$	11.34		$	10.78		$	6.79		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.44			0.32			0.48			0.41
Net realized and unrealized gain (loss)		(1.21	)		2.05			4.10			(3.26	)
Total from investment operations		(0.77	)		2.37			4.58			(2.85	)
Less distributions from:
Net investment income		(0.38	)		(0.64	)		(0.59	)		(0.36	)
Net realized gains		(2.74	)		(1.17	)		—			—
Total distributions		(3.12	)		(1.81	)		(0.59	)		(0.36	)
Redemption fees		—	(d)		—	(d)		—	(d)		—	(d)
Net asset value, end of period	$	7.45		$	11.34		$	10.78		$	6.79
Total Return (b)		–4.82	%		23.27	%		69.50	%		–27.15	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	6,007		$	15,830		$	9,864		$	3,817
Ratios to average net assets:
Net expenses (c)		1.47	%		1.48	%		1.48	%		1.48	%
Gross expenses (c)		3.05	%		2.42	%		4.20	%		19.67	%
Net investment income (c)		7.49	%		2.81	%		5.14	%		8.19	%
Portfolio turnover rate		89	%		77	%		116	%		71	%

*	The inception date for Institutional Shares was September 26, 2011.
**	Portfolio commenced operations on July 30, 2008.
(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, 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)	Annualized for a period of less than one year.
(d)	Amount is less than $0.01 per share.

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

136  Annual Report

LAZARD U.S. REALTY EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 9/26/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	15.76
Income from investment operations:
Net investment income (a)		0.10
Net realized and unrealized gain		2.91
Total from investment operations		3.01
Less distributions from:
Net investment income		(0.12	)
Net realized gains		(3.76	)
Total distributions		(3.88	)
Net asset value, end of period	$	14.89
Total Return (b)		20.84	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,525
Ratios to average net assets:
Net expenses (c)		1.20	%
Gross expenses (c)		13.07	%
Net investment income (c)		2.32	%
Portfolio turnover rate		63	%

	For the Period 6/1/11 to 12/31/11			Year Ended						For the Period 12/31/08** to 5/31/09
Selected data for a share of capital
stock outstanding throughout each period				5/31/11			5/31/10
Open Shares
Net asset value, beginning of period	$	19.49		$	16.66		$	10.76		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.14			(0.07	)		0.05			0.14
Net realized and unrealized gain (loss)		(0.90	)		5.17			7.26			0.62
Total from investment operations		(0.76	)		5.10			7.31			0.76
Less distributions from:
Net investment income		(0.06	)		(0.04	)		(0.17	)		—
Net realized gains		(3.76	)		(2.23	)		(1.24	)		—
Total distributions		(3.82	)		(2.27	)		(1.41	)		—
Redemption fees		0.01			—	(d)		—			—
Net asset value, end of period	$	14.92		$	19.49		$	16.66		$	10.76
Total Return (b)		–2.44	%		33.01	%		70.16	%		7.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,138		$	4,852		$	2,463		$	110
Ratios to average net assets:
Net expenses (c)		1.80	%		1.93	%		2.00	%		2.00	%
Gross expenses (c)		7.48	%		5.66	%		17.23	%		214.80	%
Net investment income (loss) (c)		1.36	%		–0.41	%		0.32	%		3.52	%
Portfolio turnover rate		63	%		91	%		138	%		37	%

*	The inception date for Institutional Shares was September 26, 2011.
**	Portfolio commenced operations on December 31, 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, 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)	Annualized for a period of less than one year.
(d)	Amount is less than $0.01 per share.

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

Annual Report  137

LAZARD INTERNATIONAL REALTY EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 9/26/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	13.08
Income from investment operations:
Net investment income (a)		0.03
Net realized and unrealized gain		0.05
Total from investment operations		0.08
Less distributions from:
Net investment income		(0.75	)
Net realized gains		(0.23	)
Total distributions		(0.98	)
Net asset value, end of period	$	12.18
Total Return (b)		0.09	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,914
Ratios to average net assets:
Net expenses (d)		1.30	%
Gross expenses (d)		17.38	%
Net investment income (d)		0.83	%
Portfolio turnover rate		41	%

	For the Period 6/1/11 to 12/31/11			Year Ended						For the Period 12/31/08** to 5/31/09
Selected data for a share of capital
stock outstanding throughout each period				5/31/11			5/31/10
Open Shares
Net asset value, beginning of period	$	16.98		$	14.54		$	15.39		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.06			0.16			0.28			0.10
Net realized and unrealized gain (loss)		(3.89	)		3.99			1.40			5.29
Total from investment operations		(3.83	)		4.15			1.68			5.39
Less distributions from:
Net investment income		(0.75	)		(0.55	)		(1.51	)		—
Net realized gains		(0.23	)		(1.16	)		(1.05	)		—
Total distributions		(0.98	)		(1.71	)		(2.56	)		—
Redemption fees		—			—	(c)		0.03			—
Net asset value, end of period	$	12.17		$	16.98		$	14.54		$	15.39
Total Return (b)		–22.98	%		29.13	%		9.65	%		53.90	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	667		$	1,716		$	1,427		$	424
Ratios to average net assets:
Net expenses (d)		1.84	%		1.96	%		2.00	%		2.00	%
Gross expenses (d)		16.46	%		14.35	%		25.27	%		116.23	%
Net investment income (d)		0.66	%		0.98	%		1.71	%		1.90	%
Portfolio turnover rate		41	%		54	%		81	%		5	%

*	The inception date for Institutional Shares was September 26, 2011.
**	Portfolio commenced operations on December 31, 2008.
(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, 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.

138  Annual Report

LAZARD U.S. HIGH YIELD PORTFOLIO

	Year Ended
Selected data for a share of capital stock outstanding throughout each year
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Institutional Shares
Net asset value, beginning of year	$	4.88		$	4.70		$	3.78		$	5.15		$	5.36
Income (loss) from investment operations:
Net investment income (a)		0.35			0.35			0.34			0.38			0.40
Net realized and unrealized gain (loss)		(0.10	)		0.18			0.92			(1.37	)		(0.21	)
Total from investment operations		0.25			0.53			1.26			(0.99	)		0.19
Less distributions from:
Net investment income		(0.35	)		(0.35	)		(0.34	)		(0.38	)		(0.40	)
Total distributions		(0.35	)		(0.35	)		(0.34	)		(0.38	)		(0.40	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	4.78		$	4.88		$	4.70		$	3.78		$	5.15
Total Return (b)		5.17	%		11.78	%		34.66	%		–20.24	%		3.63	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	151,278		$	112,427		$	87,568		$	34,262		$	56,278
Ratios to average net assets:
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Gross expenses		0.73	%		0.80	%		0.89	%		1.00	%		0.90	%
Net investment income		7.13	%		7.38	%		7.96	%		8.10	%		7.56	%
Portfolio turnover rate		27	%		25	%		17	%		33	%		20	%
	Year Ended
Selected data for a share of capital stock outstanding throughout each year
	12/31/11			12/31/10			12/31/09			12/31/08			12/31/07
Open Shares
Net asset value, beginning of year	$	4.90		$	4.73		$	3.79		$	5.17		$	5.37
Income (loss) from investment operations:
Net investment income (a)		0.33			0.34			0.33			0.37			0.39
Net realized and unrealized gain (loss)		(0.10	)		0.17			0.94			(1.38	)		(0.21	)
Total from investment operations		0.23			0.51			1.27			(1.01	)		0.18
Less distributions from:
Net investment income		(0.33	)		(0.34	)		(0.33	)		(0.37	)		(0.39	)
Total distributions		(0.33	)		(0.34	)		(0.33	)		(0.37	)		(0.39	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		0.01
Net asset value, end of year	$	4.80		$	4.90		$	4.73		$	3.79		$	5.17
Total Return (b)		4.89	%		11.19	%		34.40	%		–20.35	%		3.53	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	11,602		$	26,266		$	6,126		$	5,220		$	1,776
Ratios to average net assets:
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Gross expenses		1.08	%		1.13	%		1.21	%		1.74	%		2.14	%
Net investment income		6.72	%		7.05	%		7.74	%		7.89	%		7.24	%
Portfolio turnover rate		27	%		25	%		17	%		33	%		20	%

(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  139

LAZARD U.S. MUNICIPAL PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 2/28/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	10.00
Income from investment operations:
Net investment income (a)		0.17
Net realized and unrealized gain		0.27
Total from investment operations		0.44
Less distributions from:
Net investment income		(0.17	)
Net realized gains		(0.04	)
Total distributions		(0.21	)
Redemption fees		—	(c)
Net asset value, end of period	$	10.23
Total Return (b)		4.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	11,594
Ratios to average net assets:
Net expenses (d)		0.40	%
Gross expenses (d)		3.09	%
Net investment income (d)		1.97	%
Portfolio turnover rate		60	%
Selected data for a share of capital stock outstanding throughout the period	For the Period 2/28/11* to 12/31/11
Open Shares
Net asset value, beginning of period	$	10.00
Income from investment operations:
Net investment income (a)		0.14
Net realized and unrealized gain		0.28
Total from investment operations		0.42
Less distributions from:
Net investment income		(0.15	)
Net realized gains		(0.04	)
Total distributions		(0.19	)
Net asset value, end of period	$	10.23
Total Return (b)		4.20	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	103
Ratios to average net assets:
Net expenses (d)		0.70	%
Gross expenses (d)		18.49	%
Net investment income (d)		1.69	%
Portfolio turnover rate		60	%

*	Portfolio commenced operations on February 28, 2011.
(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, 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.

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LAZARD CAPITAL ALLOCATOR OPPORTUNISTIC STRATEGIES PORTFOLIO

	Year Ended									For the Period 3/26/08* to 12/31/08
Selected data for a share of capital stock outstanding throughout each period
	12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	9.96		$	8.80		$	7.36		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.12			0.12			0.14			0.21
Net realized and unrealized gain (loss)		(0.45	)		1.16			1.42			(2.59	)
Total from investment operations		(0.33	)		1.28			1.56			(2.38	)
Less distributions from:
Net investment income		(0.13	)		(0.12	)		(0.12	)		(0.26	)
Net realized gains		(0.24	)		—			—			—
Total distributions		(0.37	)		(0.12	)		(0.12	)		(0.26	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of period	$	9.26		$	9.96		$	8.80		$	7.36
Total Return (b)		–3.28	%		14.58	%		21.21	%		–23.64	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	258,832		$	239,403		$	195,939		$	110,757
Ratios to average net assets:
Net expenses (d)		1.02	%		1.02	%		1.02	%		1.02	%
Gross expenses (d)		1.13	%		1.13	%		1.16	%		1.27	%
Net investment income (d)		1.25	%		1.36	%		1.72	%		3.01	%
Portfolio turnover rate		155	%		117	%		113	%		94	%
	Year Ended									For the Period 3/31/08* to 12/31/08
Selected data for a share of capital stock outstanding throughout each period
	12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	9.97		$	8.80		$	7.37		$	9.95
Income (loss) from investment operations:
Net investment income (a)		0.08			0.06			0.12			0.30
Net realized and unrealized gain (loss)		(0.45	)		1.20			1.41			(2.64	)
Total from investment operations		(0.37	)		1.26			1.53			(2.34	)
Less distributions from:
Net investment income		(0.10	)		(0.09	)		(0.10	)		(0.24	)
Net realized gains		(0.24	)		—			—			—
Total distributions		(0.34	)		(0.09	)		(0.10	)		(0.24	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of period	$	9.26		$	9.97		$	8.80		$	7.37
Total Return (b)		–3.72	%		14.35	%		20.71	%		–23.44	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	6,111		$	7,163		$	16,856		$	9,319
Ratios to average net assets:
Net expenses (d)		1.32	%		1.32	%		1.32	%		1.32	%
Gross expenses (d)		1.57	%		1.52	%		1.44	%		1.93	%
Net investment income (d)		0.77	%		0.66	%		1.44	%		4.68	%
Portfolio turnover rate		155	%		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  141

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2011

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 twenty 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 Global Listed Infrastructure Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Small Cap Equity Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio, Lazard Emerging Markets Multi-Strategy Portfolio (commenced investment operations on March 31, 2011), Lazard Emerging Markets Debt Portfolio (commenced investment operations on February 28, 2011), Lazard U.S. Realty Income Portfolio (from June 1, 2011), Lazard U.S. Realty Equity Portfolio (from June 1, 2011), Lazard International Realty Equity Portfolio (from June 1, 2011), Lazard U.S. High Yield Portfolio, Lazard U.S. Municipal Portfolio (commenced investment operations on February 28, 2011) 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, other than the Emerging Markets Debt Portfolio, U.S. Realty Equity Portfolio and International Realty Equity Portfolio, are operated as “diversified” funds, as defined in the Act.

Pursuant to an Agreement and Plan of Reorganization dated as of June 29, 2011 (the “Plan”), between Trust for Professional Managers, on behalf of Grubb & Ellis AGA Realty Income Fund, Grubb & Ellis AGA U.S. Realty Fund and Grubb & Ellis AGA International Realty Fund (collectively, the “G&E Portfolios”), and the Fund, on behalf of Lazard U.S. Realty Income Portfolio, Lazard U.S. Realty Equity Portfolio and Lazard International Realty Equity Portfolio (collectively, the “Realty Portfolios”), the Fund acquired, in a tax-free reorganization, the assets and liabilities of the G&E Portfolios. The effective date of the reorganization, at which time the respective G&E Portfolios became known as the Open Share class of the respective Realty Portfolios, was the close of business on September 23, 2011. The Institutional Share class for each Realty Portfolio, which was not part of the Plan, commenced on September 26, 2011. The accompanying financial statements reflected the Realty Portfolio’s operations from June 1, 2011 (beginning of their current fiscal year) through December 31, 2011.

2. Significant Accounting Policies

The accompanying financial statements are presented in conformity with 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”), NAS-DAQ 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. Other swap agreements, such as credit default and interest rate swap agreements are valued by an independent pricing vendor using its own proprietary database to provide valuations. 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 the 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’ quota-

142  Annual Report

tions. 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”).

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.

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 certain derivative instruments), such securities will be valued at their fair value as determined by, or in accordance with procedures approved by, the Board. The fair value of foreign securities may be determined with the assistance of a pricing service, using correlations between the movement of prices of such securities and indices of domestic securities and other appropriate indicators, such as closing market prices of relevant ADRs or futures contracts. The effect of using fair value pricing is that the net asset value of a Portfolio will reflect the affected securities’ values as determined in the judgment of the Board or its designee instead of being determined by the market. Using a fair value pricing methodology to price securities may result in a value that is different 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. Foreign securities may trade on days when a Portfolio is not open for business, thus affecting the value of the Portfolio’s assets on days when Portfolio shareholders may not be able to buy or sell Portfolio shares.

(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income is recorded on the ex-dividend date and interest income is accrued daily. The Portfolios amortize premiums and accrete discounts on fixed-income securities using the effective yield method. For the period ended December 31, 2011, Emerging Markets Multi-Strategy Portfolio, Emerging Markets Debt Portfolio, U.S. High Yield Portfolio, and U.S. Municipal 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

Annual Report  143

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 Portfolio 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.

During the year or period ended December 31, 2011, transactions in options purchased and written were as follows:

Emerging Markets Multi-Strategy Portfolio
Purchased Options	Number of Contracts			Amount
Options outstanding at beginning of the period		—		$	—
Options purchased		942,450			197,126
Options sold		(681,500	)		(19,947	)
Options exercised		(184,150	)		(35,465	)
Options expired		(50,100	)		(76,695	)
Options outstanding at end of period		26,700		$	65,019
Written Options	Number of Contracts			Premiums
Options outstanding at beginning of the period		—		$	—
Options written		131,670			125,048
Options repurchased		(53,420	)		(40,304	)
Options exercised		(20,600	)		(22,522	)
Options expired		(34,650	)		(39,764	)
Options outstanding at end of period		23,000		$	22,458
Emerging Markets Debt Portfolio
Purchased Options	Number of Contracts			Amount
Options outstanding at beginning of the period		—		$	—
Options purchased		3,824,950			646,055
Options sold		(2,759,000	)		(91,232	)
Options exercised		(850,800	)		(126,690	)
Options expired		(117,350	)		(184,052	)
Options outstanding at end of period		97,800		$	244,081
Written Options	Number of Contracts			Premiums
Options outstanding at beginning of the period		—		$	—
Options written		396,190			374,863
Options repurchased		(180,500	)		(126,649	)
Options exercised		(48,570	)		(52,274	)
Options expired		(93,120	)		(123,305	)
Options outstanding at end of period		74,000		$	72,635

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U.S. Realty Income Portfolio
Purchased Options	Number of Contracts			Amount
Options outstanding at beginning of the period		—		$	—
Options purchased		180			76,680
Options sold		(180	)		(76,680	)
Options outstanding at end of period		—		$	—
U.S. Realty Equity Portfolio
Purchased Options	Number of Contracts			Amount
Options outstanding at beginning of the period		—		$	—
Options purchased		20			9,520
Options sold		(20	)		(9,520	)
Options outstanding at end of period		—		$	—
Capital Allocator Opportunistic Strategies Portfolio
Purchased Options	Number of Contracts			Amount
Options outstanding at beginning of the year		4,200		$	2,430,701
Options purchased		14,534			9,035,727
Options sold		(11,650	)		(7,148,973	)
Options outstanding at end of year		7,084		$	4,317,455
Written Options	Number of Contracts			Premiums
Options outstanding at beginning of the year		—		$	—
Options written		800			79,398
Options expired		(800	)		(79,398	)
Options outstanding at end of year		—		$	—

None of the other Portfolios in the Fund traded in options during the year ended December 31, 2011.

(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.

Credit default swap agreements involve one party making a stream of payments (referred to as the buyer of protection) to another party (the seller of protection) in exchange for the right to receive a specified return in the event of a default or other credit event for the referenced entity, obligation or index. As a seller of protection, a portfolio generally receives an upfront payment or a fixed rate of income throughout the term of the swap provided there is no credit event. As the seller, a portfolio would effectively add leverage to its portfolio because, in addition to its total net assets, a portfolio would be subject to investment exposure on the notional amount of the swap.

Interest rate swap agreements involve the exchange by a portfolio with another party of their respective commitments to pay or receive interest with respect to the notional amount of principal. Certain forms of interest rate swap agreements may include: (i) interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or “cap”, (ii) interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or “floor”, (iii) interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels, (iv) callable interest rate swaps, under which the counterparty may terminate the swap transaction in whole at zero cost by a predetermined date and time prior to the maturity date, (v) spreadlocks, which allow the interest rate swap users to lock in the forward differential (or spread) between the interest rate swap rate and a specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different money markets.

Swap agreements are marked to market daily based upon the values received from third party vendors or quotations from market makers, 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.

Annual Report  145

For the period ended December 31, 2011, Emerging Markets Multi-Strategy Portfolio, Emerging Markets Debt Portfolio and 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, 2011, 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 2016		Expiring 2017
U.S. Equity Value	$	572,109	$	1,691,984
U.S. Strategic Equity		4,080,017		14,362,392
U.S. Mid Cap Equity		28,014,052		40,427,588
International Equity		1,140,249		30,343,230
International Equity Select		530,749		2,653,216
International Strategic Equity		15,180,835		60,710,573
International Small Cap Equity		26,319,540		50,821,243
U.S. High Yield		1,590,717		5,346,242
Portfolio			Expiring 2018
International Equity			$	5,103,235
International Equity Select				1,173,332
International Small Cap Equity				4,306,477
U.S. High Yield				378,664
Portfolio	Unlimited Short-Term Capital Losses		Unlimited Long-Term Capital Losses
Emerging Markets Equity Blend	$	94,103	$	174,675
Emerging Markets Multi-Strategy		365,947		—

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, 2011, the following Portfolios elected to defer net capital and foreign currency losses arising between November 1, 2011 and December 31, 2011 as follows:

Portfolio	Amount
U.S. Small-Mid Cap Equity	$	2,807,165
International Equity Select		3,652
Emerging Markets Equity		11,328,173
Developing Markets Equity		5,213,577
Emerging Markets Equity Blend		1,092,258
Emerging Markets Multi-Strategy		501,303
Emerging Markets Debt		729,354
International Realty Equity		91,345
U.S. Municipal		83,574
Capital Allocator Opportunistic Strategies		824,195

On December 22, 2010, the Regulated Investment Company Modernization Act of 2010 (the “RIC Modernization Act”) was signed into law. The RIC Modernization Act includes numerous provisions that generally become effective for taxable years beginning after the date of enactment. Among the new provisions, net capital losses may be carried forward indefinitely, and their character is retained as short-term or long-term losses. Previously, net capital losses were carried forward for eight years and treated as short-term losses. The RIC Modernization Act also requires that post-enactment net capital losses be used before pre-enactment net capital losses. As a result, pre-enactment capital loss car-ryforwards may expire unused.

Management has analyzed the Portfolios’ 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 (2008-2010), or expected to be taken in the Portfolios’ 2011 tax returns.

(h) Dividends and Distributions—The Fund intends to declare dividends from net investment income daily on shares of Emerging Markets Debt, U.S. High Yield and U.S. Municipal Portfolios 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 Portfolios, 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.

146  Annual Report

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

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

	Ordinary Income				Long-Term Capital Gain
Portfolio	2011		2010		2011		2010
U.S. Equity Value Institutional	$	198,163	$	126,683	$	—	$	—
Open		4,595		2,060		—		—
U.S. Strategic Equity Institutional		576,867		724,232		—		—
Open		58,180		77,713		—		—
U.S. Mid Cap Equity Institutional		289,121		1,096,389		—		—
Open		10,886		483,080		—		—
U.S. Small-Mid Cap Equity Institutional		8,904,379		716,032		7,821,680		—
Open		993,743		—		872,912		—
Global Listed Infrastructure Institutional		2,996,156		3,441,907		2,473,074		—
Open		70,156		2,631		57,908		—
International Equity Institutional		2,126,498		3,382,382		—		—
Open		635,263		478,939		—		—
International Equity Select Institutional		107,555		103,546		—		—
Open		74,627		130,875		—		—
International Strategic Equity Institutional		5,917,381		4,610,208		—		—
Open		521,056		293,349		—		—
International Small Cap Equity Institutional		782,430		672,354		—		—
Open		325,694		321,023		—		—
	Ordinary Income				Long-Term Capital Gain
Portfolio	2011		2010		2011		2010
Emerging Markets Equity Institutional	$	339,762,093	$	208,037,965	$	321,878,689	$	—
Open		92,979,579		34,958,144		88,085,591		—
Developing Markets Equity Institutional		4,472,235		5,688,374		1,768,253		684,404
Open		2,551,532		6,938,315		1,008,837		1,039,010
Emerging Markets Equity Blend Institutional		1,130,956		70,487		—		—
Open		180,551		11,530		—		—
Emerging Markets
Multi-Strategy Institutional		334,780		—		—		—
Open		695		—		—		—
Emerging Markets Debt Institutional		2,175,652		—		—		—
Open		5,728		—		—		—
U.S Realty Income Institutional		451,179		—		635,068		—
Open		290,713		394,067		409,201		—
U.S. Realty Equity Institutional		75,467		—		110,780		—
Open		169,915		—		249,426		—
International Realty Equity Institutional		39,349		—		15,303		—
Open		30,500		—		11,862		—
U.S. High Yield Institutional		9,192,387		6,590,797		—		—
Open		1,376,010		1,446,983		—		—
U.S. Municipal Institutional		2,672		—		48,175		—
Open		26		—		463		—
Capital Allocator Opportunistic Strategies Institutional		2,893,565		2,908,206		7,276,834		—
Open		80,197		65,569		201,681		—

Annual Report  147

As of December 31, 2011, 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	$	101	$	—	$	119,753		$	15,231
U.S. Strategic Equity		954,274		—		8,075,995			—
U.S. Mid Cap Equity		54,669		—		126,548			—
U.S. Small-Mid Cap Equity		—		—		(2,116,114	)		—
Global Listed Infrastructure		1,901,152		—		(14,462,725	)		2
International Equity		2,238,792		—		2,568,548			—
International Equity Select		99,807		—		(200,106	)		—
International Strategic Equity		1,389,997		—		3,256,315			15,573
International Small Cap Equity		916,152		—		2,484,938			—
Emerging Markets Equity		—		—		(578,627,146	)		—
Developing Markets Equity		—		—		(61,226,987	)		34,119
Emerging Markets Equity Blend		67,200		—		(22,125,297	)		32,590
Emerging Markets Multi-Strategy		—		—		(4,958,989	)		29,689
Emerging Markets Debt		—		—		(794,746	)		113,030
U.S. Realty Income		—		—		1,173,597			3
U.S. Realty Equity		—		582		74,231			—
International Realty Equity		—		—		(253,411	)		—
U.S. High Yield		—		—		887,509			128,289
U.S. Municipal*		—		—		330,476			37,109
Capital Allocator Opportunistic Strategies		—		—		(12,216,394	)		1,221,735

* U.S. Municipal Portfolio had $172,460 in tax exempt distributions and $36,808 of undistributed tax exempt income.

(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 year or 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
Global Listed Infrastructure		0.90
International Equity		0.75
International Equity Select		0.85
International Strategic Equity		0.75

148  Annual Report

Portfolio	Annual Rate
International Small Cap Equity		0.75
Emerging Markets Equity		1.00
Developing Markets Equity		1.00
Emerging Markets Equity Blend		1.05
Emerging Markets Multi-Strategy		1.00
Emerging Markets Debt		0.80
U.S. Realty Income*		0.75
U.S. Realty Equity*		0.80
International Realty Equity*		0.90
U.S. High Yield		0.55
U.S. Municipal		0.25
Capital Allocator Opportunistic Strategies		1.00

* From June 1, 2011 to September 25, 2011, the annual rate was 1.00%.

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

Portfolio	Institutional Shares			Open Shares
U.S. Equity Value		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
Global Listed Infrastructure		1.30			1.60
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
Emerging Markets Equity		1.30			1.60
Developing Markets Equity		1.30			1.60
Emerging Markets Equity Blend		1.35			1.65
Emerging Markets Multi-Strategy		1.30			1.60
Emerging Markets Debt*		1.00			1.30
U.S. Realty Income		1.15			1.45	**
U.S. Realty Equity		1.20			1.50	**
International Realty Equity		1.30			1.60	**
U.S. High Yield		0.55			0.85
U.S. Municipal		0.40			0.70
Capital Allocator Opportunistic Strategies		1.02			1.32

*	Effective September 19, 2011, the Investment Manager voluntarily agreed to lower the expense cap from 1.10% to 1.00% and 1.40% to 1.30% for Institutional Shares and Open Shares, respectively.
**	From June 1, 2011 to September 25, 2011, the expense caps were 1.48%, 1.90% and 1.95% for U.S. Realty Income Portfolio, U.S. Realty Equity Portfolio and International Realty Equity Portfolio, respectively.

During the year or period ended December 31, 2011, the Investment Manager waived its management fees and reimbursed the following Portfolios for other expenses as follows:

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed		Management Fees Waived		Expenses Reimbursed
U.S. Equity Value	$	88,109	$	84,582	$	2,234	$	14,639
U.S. Strategic Equity		163,370		—		30,393		—
Global Listed Infrastructure		—		—		3,000		—
International Equity Select		32,194		100,748		23,810		78,924
International Small Cap Equity		18,875		—		6,521		—
Developing Markets Equity		5,408		—		14,922		—
Emerging Markets Equity Blend		162,886		—		43,178		—
Emerging Markets Multi-Strategy		288,518		—		741		4,556
Emerging Markets Debt		221,001		—		779		7,561
U.S. Realty Income*		27,476		10,136		48,813		31,047
U.S. Realty Equity*		2,615		29,569		15,412		66,125
International Realty Equity*		3,705		41,867		6,818		79,461
U.S. High Yield		239,235		—		45,761		—
U.S. Municipal		21,986		193,542		212		8,538
Capital Allocator Opportunistic Strategies		267,173		—		17,078		—
*      Includes waiver and reimbursement by previous manager.

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 following portfolios until each respective Portfolio’s net assets reach $25 million. During the year or period ended December 31, 2011, State Street waived its fees as follows:

Portfolio	Amount
U.S. Equity Value	$	18,750
Emerging Markets Multi-Strategy		1,563
Emerging Markets Debt		9,375
U.S. Realty Income		3,125
U.S. Realty Equity		4,688
International Realty Equity		4,688
U.S. Municipal		15,625

Annual Report  149

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 for the Fund during the month, subject to a minimum fee amount per share class in each Portfolio, and is reimbursed for certain out-of-pocket expenses. BFDS has agreed to waive the monthly minimum fee for six months after a new Portfolio has commenced operations. During the year or period ended December 31, 2011, BFDS waived its fees as follows:

Portfolio	Amount
Emerging Markets Multi-Strategy	$	11,966
Emerging Markets Debt		12,183
U.S. Realty Income		4,254
U.S. Realty Equity		5,955
International Realty Equity		6,060
U.S. Municipal		11,954

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 ($100,000 effective January 1, 2012), (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 of $5,000. Such Directors are also 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 or period ended December 31, 2011 were as follows:

Portfolio	Purchases		Sales
U.S. Equity Value	$	6,868,096	$	8,293,565
U.S. Strategic Equity		36,037,604		20,022,235
U.S. Mid Cap Equity		142,733,736		180,363,521
U.S. Small-Mid Cap Equity		239,216,255		292,269,716
Global Listed Infrastructure		239,018,679		235,134,117
International Equity		45,503,333		87,265,738
International Equity Select		4,427,387		3,620,685
International Strategic Equity		357,006,455		227,243,610
International Small Cap Equity		18,218,085		24,815,609
Emerging Markets Equity		3,775,172,223		4,682,244,733
Developing Markets Equity		282,506,014		153,139,385
Emerging Markets Equity Blend		128,523,547		59,927,101
Emerging Markets Multi-Strategy		83,337,611		34,034,484
Emerging Markets Debt		141,279,881		44,696,097
U.S. Realty Income		23,562,546		13,849,585
U.S. Realty Equity		2,155,256		3,828,168
International Realty Equity		2,164,110		799,884
U.S. High Yield		67,062,133		39,558,478
U.S. Municipal		17,490,498		6,248,489
Capital Allocator Opportunistic Strategies		363,705,453		342,889,253

For the year or period ended December 31, 2011, 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 disposi-

150  Annual Report

tion of securities. Interest on borrowings was payable at the Federal Funds rate plus 1.25% from January 1, 2011 to July 17, 2011 and at the Overnight rate plus 1.00% from July 18, 2011 to December 31, 2011, on an annualized basis. Under the Agreement, the Fund has also agreed to pay a 0.15% per annum fee from January 1, 2011 to July 17, 2011 and a 0.10% per annum fee from July 18, 2011 to December 31, 2011 on the unused portion of the commitment, payable quarterly in arrears. During the year or period ended December 31, 2011, 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. Equity Value	$	850,000	$	850,000		1.14	%		1
U.S. Strategic Equity		4,600,000		8,400,000		1.40			2
U.S. Mid Cap Equity		2,187,500		14,500,000		1.32			20
U.S. Small-Mid Cap Equity		1,500,000		1,500,000		1.36			2
Global Listed Infrastructure		1,244,000		1,900,000		1.15			5
International Equity		1,761,538		2,600,000		1.25			13
International Equity Select		128,000		140,000		1.43			5
International Small Cap Equity		394,444		950,000		1.20			9
Emerging Markets Equity		29,165,556		48,730,000		1.15			9
Developing Markets Equity		1,200,000		1,600,000		1.23			6
Emerging Markets Equity Blend		3,987,500		5,700,000		1.15			8
U.S. Realty Equity		65,973		107,000		1.15			22
International Realty Equity		19,167		140,000		1.15			12
U.S. High Yield		4,068,750		13,400,000		1.15			16

* 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.

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.

Annual Report  151

The following tables summarize the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2011:

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, 2011
U.S. Equity Value Portfolio
Common Stocks	$	11,121,680	$	—		$	—	$	11,121,680
Short-Term Investment		—		359,795			—		359,795
Total	$	11,121,680	$	359,795		$	—	$	11,481,475
U.S. Strategic Equity Portfolio
Common Stocks	$	70,752,627	$	—		$	—	$	70,752,627
Preferred Stock		—		—			823,560		823,560
Short-Term Investment		—		1,094,289			—		1,094,289
Total	$	70,752,627	$	1,094,289		$	823,560	$	72,670,476
U.S. Mid Cap Equity Portfolio
Common Stocks	$	139,405,220	$	—		$	—	$	139,405,220
Preferred Stock		—		—			2,374,420		2,374,420
Short-Term Investment		—		4,641,830			—		4,641,830
Total	$	139,405,220	$	4,641,830		$	2,374,420	$	146,421,470
U.S. Small-Mid Cap Equity Portfolio
Common Stocks	$	182,331,034	$	—		$	—	$	182,331,034
Preferred Stock		—		—			822,471		822,471
Repurchase Agreement		—		3,817,000			—		3,817,000
Total	$	182,331,034	$	3,817,000		$	822,471	$	186,970,505
Global Listed Infrastructure Portfolio
Assets:
Common Stocks	$	107,233,828	$	—		$	—	$	107,233,828
Short-Term Investment		—		5,410			—		5,410
Other Financial Instruments* Forward Currency Contracts		—		1,692,107			—		1,692,107
Total	$	107,233,828	$	1,697,517		$	—	$	108,931,345
Liabilities:
Other Financial Instruments* Forward Currency Contracts	$	—	$	(182,599	)	$	—	$	(182,599	)
International Equity Portfolio
Common Stocks	$	99,628,562	$	1,503,668		$	—	$	101,132,230
Repurchase Agreement		—		2,263,000			—		2,263,000
Total	$	99,628,562	$	3,766,668		$	—	$	103,395,230
International Equity Select Portfolio
Common Stocks	$	6,655,486	$	131,017		$	—	$	6,786,503
Short-Term Investment		—		109,274			—		109,274
Total	$	6,655,486	$	240,291		$	—	$	6,895,777
International Strategic Equity Portfolio
Common Stocks	$	460,434,881	$	6,951,141		$	—	$	467,386,022
Preferred Stock		6,954,866		—			—		6,954,866
Short-Term Investment		—		18,014,350			—		18,014,350
Total	$	467,389,747	$	24,965,491		$	—	$	492,355,238
International Small Cap Equity Portfolio
Common Stocks	$	53,571,499	$	—		$	—	$	53,571,499
Preferred Stock		622,081		—			—		622,081
Short-Term Investment		—		2,413,988			—		2,413,988
Total	$	54,193,580	$	2,413,988		$	—	$	56,607,568

152  Annual Report

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, 2011
Emerging Markets Equity Portfolio
Common Stocks	$	12,731,037,884	$	462,020,197		$	—	$	13,193,058,081
Preferred Stocks		361,945,628		—			—		361,945,628
Short-Term Investment		—		2,812			—		2,812
Total	$	13,092,983,512	$	462,023,009		$	—	$	13,555,006,521
Developing Markets Equity Portfolio
Common Stocks	$	196,530,364	$	9,295,379		$	—	$	205,825,743
Preferred Stock		14,420,993		—			—		14,420,993
Short-Term Investment		—		3,060,182			—		3,060,182
Total	$	210,951,357	$	12,355,561		$	—	$	223,306,918
Emerging Markets Equity Blend Portfolio
Common Stocks	$	95,696,117	$	1,649,474		$	—	$	97,345,591
Preferred Stock		5,998,408		—			—		5,998,408
Short-Term Investment		—		5,625,563			—		5,625,563
Total	$	101,694,525	$	7,275,037		$	—	$	108,969,562
Emerging Markets Multi-Strategy Portfolio
Assets:
Common Stocks	$	27,619,434	$	469,181		$	—	$	28,088,615
Corporate Bonds		—		2,843,505			—		2,843,505
Foreign Government Obligations		—		10,112,629			—		10,112,629
Preferred Stock		1,720,175		—			—		1,720,175
Quasi Bonds		—		629,140			—		629,140
Supranationals		—		202,129			—		202,129
Short-Term Investment		—		12,413,482			—		12,413,482
Other Financial Instruments*
Purchased Options		—		10,362			—		10,362
Credit Default Swap Agreements		—		1,397			—		1,397
Interest Rate Swap Agreements		—		11,539			—		11,539
Forward Currency Contracts		—		224,299			—		224,299
Total	$	29,339,609	$	26,917,663		$	—	$	56,257,272
Liabilities:
Other Financial Instruments*
Written Options	$	—	$	(1,470	)	$	—	$	(1,470	)
Credit Default Swap Agreements		—		(1,437	)		—		(1,437	)
Interest Rate Swap Agreements		—		(2,191	)		—		(2,191	)
Forward Currency Contracts		—		(213,829	)		—		(213,829	)
Total	$	—	$	(218,927	)	$	—	$	(218,927	)
Emerging Markets Debt Portfolio
Assets:
Corporate Bonds	$	—	$	8,371,368		$	—	$	8,371,368
Foreign Government Obligations		—		79,249,464			—		79,249,464
Quasi Bonds		—		7,671,834			—		7,671,834
Supranationals		—		241,984			—		241,984
Short-Term Investments		—		9,595,503			—		9,595,503
Other Financial Instruments*
Purchased Options		—		41,799			—		41,799
Credit Default Swap Agreements		—		15,984			—		15,984
Forward Currency Contracts		—		39,116			—		39,116
Total	$	—	$	105,227,052		$	—	$	105,227,052

Annual Report  153

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, 2011
Emerging Markets Debt Portfolio (continued)
Liabilities:
Other Financial Instruments*
Written Options	$	—	$	(4,860	)	$	—	$	(4,860	)
Forward Currency Contracts		—		(137,718	)		—		(137,718	)
Total	$	—	$	(142,578	)	$	—	$	(142,578	)
U.S. Realty Income Portfolio
Closed-End Management Investment Company	$	228,660	$	—		$	—	$	228,660
Common Stocks		1,622,851		—			—		1,622,851
Preferred Stocks		9,832,017		—			—		9,832,017
Real Estate Investment Trusts		11,816,136		—			—		11,816,136
Corporate Bond		—		623,333			—		623,333
Short-Term Investment		—		903,910			—		903,910
Total	$	23,499,664	$	1,527,243		$	—	$	25,026,907
U.S. Realty Equity Portfolio
Common Stocks	$	301,590	$	—		$	—	$	301,590
Real Estate Investment Trusts		2,311,063		—			—		2,311,063
Short-Term Investment		—		38,983			—		38,983
Total	$	2,612,653	$	38,983		$	—	$	2,651,636
International Realty Equity Portfolio
Common Stocks	$	1,927,650	$	—		$	—	$	1,927,650
Real Estate Investment Trusts		661,259		—			—		661,259
Total	$	2,588,909	$	—		$	—	$	2,588,909
U.S. High Yield Portfolio
Corporate Bonds	$	—	$	156,124,041		$	—	$	156,124,041
Short-Term Investment		—		4,487,970			—		4,487,970
Total	$	—	$	160,612,011		$	—	$	160,612,011
U.S. Municipal Portfolio
Municipal Bonds	$	—	$	11,467,073		$	—	$	11,467,073
Short-Term Investment		—		66,040			—		66,040
Total	$	—	$	11,533,113		$	—	$	11,533,113
Capital Allocator Opportunistic Strategies Portfolio
Assets:
Exchange-Traded Funds	$	212,775,394	$	—		$	—	$	212,775,394
Closed-End Management Investment Companies		19,457,465		—			—		19,457,465
Short-Term Investment		—		28,815,867			—		28,815,867
Other Financial Instruments*
Purchased Option		7,084		—			—		7,084
Total Return Swap Agreements		—		1,189,448			—		1,189,448
Forward Currency Contracts		—		324,402			—		324,402
Total	$	232,239,943	$	30,329,717		$	—	$	262,569,660
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(156,828	)	$	—	$	(156,828	)

* Other financial instruments are derivative instruments which are valued at their respective unrealized appreciation/depreciation.

154  Annual Report

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 fixed income securities 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 options included in Level 2 were valued based on values provided by an independent pricing vendor model, designed to produce prices that very closely reflect those quoted by global interbank brokers. The swap agreements included in Level 2 were valued based, for equity swap agreements, on the value of the underlying assets in the equity basket adjusted for any accrued interest income or expense and, for fixed income-based swap agreements, on the valuations provided by an independent pricing vendor. The preferred stock included in Level 3 was valued by reference to comparable entities and evaluation of fundamental data relating to the issuer. The short-term investment included in Level 2 (a pooled investment fund) was valued at the fund’s net asset value. The repurchase agreements included in Level 2 were valued at the principal amounts plus accrued interest.

In connection with the periodic implementation of fair value pricing procedures with respect to foreign securities (see Note 2(a)), certain securities in the Global Listed Infrastructure, International Equity, International Equity Select, International Strategic Equity, International Small Cap Equity, Emerging Market Equity, Developing Markets Equity, Emerging Markets Equity Blend, Emerging Markets Multi-Strategy and International Realty 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. There were no significant transfers into or out of Levels 1, 2, or 3 during the year or period ended December 31, 2011.

For further information regarding security characteristics see the Portfolios of Investments.

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, 2011:

Description	Balance as of December 31, 2010		Accrued Discounts (Premiums)		Realized Gain (Loss)			Change in Unrealized Appreciation (Depreciation)			Purchases		Sales		Transfers Into Level 3		Transfers Out of Level 3		Balance as of December 31, 2011		Net Change in Unrealized Appreciation from Investments Still Held at December 31, 2011
U.S. Strategic Equity
Preferred Stock	$	453,501	$	—	$	—		$	370,059		$	—	$	—	$	—	$	—	$	823,560	$	370,059
U.S. Mid Cap Equity
Preferred Stock	$	1,307,499	$	—	$	—		$	1,066,921		$	—	$	—	$	—	$	—	$	2,374,420	$	1,066,921
U.S. Small-Mid Cap Equity
Preferred Stock	$	452,901	$	—	$	—		$	369,570		$	—	$	—	$	—	$	—	$	822,471	$	369,570
U.S. High Yield*
Warrant	$	5	$	—	$	(30,494	)	$	(3,858	)	$	—	$	34,347	$	—	$	—	$	—	$	—

* U.S. High Yield Portfolio held other Level 3 securities as of December 31, 2011 that have been excluded from this table as they have no market value.

Annual Report  155

10. Derivative Instruments
Certain Portfolios may use derivative instruments, including forward currency contracts, options 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, 2011, the cost of purchases and the proceeds from sales of forward currency contracts were $749,303,965 and $766,161,569, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2011:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	1,692,107
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	(182,599	)

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2011 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(4,997,744	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	4,025,141

Emerging Markets Multi-Strategy Portfolio
During the period ended December 31, 2011, the cost of purchases and the proceeds from sales of forward currency contracts were $103,275,181 and $101,800,608, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2011:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	224,299
Gross unrealized depreciation on purchased options	$	(54,657	)
Credit Risk:
Gross unrealized appreciation on credit default swap agreements	$	1,397
Interest Rate Risk:
Gross unrealized appreciation on interest rate swap agreements	$	11,539
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	(213,829	)
Gross unrealized appreciation on written options	$	20,988
Credit Risk:
Gross unrealized depreciation on credit default swap agreements	$	(1,437	)
Interest Rate Risk:
Gross unrealized depreciation on interest rate swap agreements	$	(2,191	)

The effect of derivative instruments on its Statement of Operations for the period ended December 31, 2011 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Credit Risk:
Net realized gain on credit default swap agreements	$	(65,685	)
Interest Rate Risk:
Net realized gain on interest rate swap agreements	$	(158,078	)
Net realized gain on options	$	2,520
Foreign Exchange Risk
Net realized loss on forward currency contracts	$	(204,059	)
Net realized gain on options	$	9,522

156  Annual Report

	Amount
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Credit Risk:
Net change in unrealized depreciation on credit default swap agreements	$	(40	)
Interest Rate Risk:
Net change in unrealized appreciation on interest rate swap agreements	$	9,348
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	10,470
Net change in unrealized depreciation on options	$	(33,669	)

Emerging Markets Debt Portfolio
During the period ended December 31, 2011, the cost of purchases and the proceeds from sales of forward currency contracts were $96,191,475 and $89,007,977, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2011:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	39,116
Gross unrealized depreciation on purchased options	$	(202,282	)
Credit Risk:
Gross unrealized appreciation on credit default swap agreement	$	15,984
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	(137,718	)
Gross unrealized appreciation on written options	$	67,775

The effect of derivative instruments on its Statement of Operations for the period ended December 31, 2011 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(91,308	)
Net realized gain on options	$	117,221
Credit Risk:
Net realized gain on credit default swap agreement	$	35,501
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(98,602	)
Net change in unrealized depreciation on options	$	(134,507	)
Credit Risk:
Net change in unrealized appreciation on credit default swap agreement	$	15,984

Capital Allocator Opportunistic Strategies Portfolio
During the year ended December 31, 2011, the cost of purchases and the proceeds from sales of forward currency contracts were $39,683,862 and $85,755,471, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2011:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	324,402
Equity Risk:
Gross unrealized appreciation on total return swap agreements	$	1,189,448
Gross unrealized depreciation on purchased option	$	(4,310,371	)
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	(156,828	)

Annual Report  157

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2011 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(822,378	)
Equity Risk:
Net realized gain on options	$	1,303,732
Net realized loss on total return swap agreements	$	(2,093,341	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(23,500	)
Equity Risk:
Net change in unrealized depreciation on options	$	(4,756,670	)
Net change in unrealized appreciation on total return swap agreements	$	1,101,438

None of the other Portfolios in the Fund traded in derivatives during the year or period ended December 31, 2011.

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

11. Accounting Pronouncement
In May 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011-04 (“ASU 2011-04”), “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in US GAAP and International Financial Reporting Standards.” The ASU 2011-04 changes certain fair value measurement principles and disclosure requirements.

The ASU 2011-04 is effective for annual periods beginning after December 15, 2011. Management is currently evaluating the impact the adoption of ASU 2011-04 will have on the Fund’s financial statements and related disclosures.

12. 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.

158  Annual Report

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

Anchin, Block & Anchin LLP
Accountants & Advisors
1375 Broadway New York, NY 10018
(212) 840-3456
www.anchin.com

To The Board of Directors and Shareholders of
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 Global Listed Infrastructure Portfolio, Lazard International Equity Portfolio, Lazard International Equity Select Portfolio, Lazard International Strategic Equity Portfolio, Lazard International Small Cap Equity Portfolio, Lazard Emerging Markets Equity Portfolio, Lazard Developing Markets Equity Portfolio, Lazard Emerging Markets Equity Blend Portfolio (commenced operations on May 28, 2010), Lazard Emerging Markets Multi-Strategy Portfolio (commenced operations on March 31, 2011), Lazard Emerging Markets Debt Portfolio (commenced operations on February 28, 2011), Lazard U.S. Realty Income Portfolio (from June 1, 2011), Lazard U.S. Realty Equity Portfolio (from June 1, 2011), Lazard International Realty Equity Portfolio (from June 1, 2011), Lazard U.S. High Yield Portfolio, Lazard U.S. Municipal Portfolio (commenced operations on February 28, 2011) and Lazard Capital Allocator Opportunistic Strategies Portfolio) as of December 31, 2011 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 for the period from the dates noted above to December 31, 2011, and the financial highlights for each of the periods presented, except for Lazard U.S. Realty Income Portfolio, Lazard U.S. Realty Equity Portfolio and Lazard International Realty Equity Portfolio (collectively the “Realty Portfolios”) for which our audit is for the period from June 1, 2011 to December 31, 2011. 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. The financial statements and financial highlights for the Realty Portfolios for each of the comparative periods reported through May 31, 2011 were audited by other independent registered public accountants whose report thereon, dated July 27, 2011, expressed an unqualified opinion on them.

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, 2011, 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, excluding the comparative financial statements and financial highlights for the Realty Portfolios for the periods through May 31, 2011, present fairly, in all material respects, the financial position of each of the respective portfolios constituting The Lazard Funds, Inc. as of December 31, 2011, 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 from the dates noted in the first paragraph above to December 31, 2011, and the financial highlights for the periods noted in the first paragraph above, in conformity with accounting principles generally accepted in the United States of America.

ANCHIN, BLOCK & ANCHIN LLP

New York, New York
February 29, 2012

Annual Report  159

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) and Other Public Company Directorships Held During the Past Five Years(2)
Non-Interested Directors (3):
Kenneth S. Davidson (66)(4)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 - present) Aquiline Holdings LLC, an investment manager, Partner (2006 - present)
Nancy A. Eckl (49)	Director (April 2007)	American Beacon Advisors, Inc. (“American Beacon”) and certain funds advised by American Beacon, Vice President (1990 - 2006) College Retirement Equities Fund (eight accounts), Trustee (2007 - present) TIAA-CREF Funds (57 funds) and TIAA-CREF Life Funds (10 funds), Trustee (2007 - present) TIAA Separate Account VA-1, Member of the Management Committee (2007 - present)
Lester Z. Lieberman (81)	Director (October 1991)	Private Investor
Leon M. Pollack (71)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (67)	Director (May 1991)	Georgica Advisors LLC, an investment manager, Chairman (1997 - present) O’Charley’s, Inc., a restaurant chain, Director (1984 - present)
Robert M. Solmson (64)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 - present)
Interested Directors (5):
Charles L. Carroll (51)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 - present)
Ashish Bhutani (51)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 - present) Lazard Ltd, Vice Chairman and Director (2010 - present)

(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 (currently comprised of 26 active investment portfolios). Each Director serves for 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. and Lazard Alternative Strategies 1099 Fund, closed-end registered management investment companies advised by an affiliate of the Investment Manager.
(3)	“Independent Directors” are not “interested persons” (as defined in the Act) of the Fund.
(4)	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) of the Fund.
(5)	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.

160  Annual Report

Name (Age) Address (1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During Past 5 Years
Officers (3):
Nathan A. Paul (39)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (53)	Treasurer (May 2003)	Vice President of the Investment Manager
Brian D. Simon (49)	Chief Compliance Officer (January 2009) and Assistant Secretary (November 2002)	Managing Director (since February 2011, previously Director) of the Investment Manager and Chief Compliance Officer (since January 2009) of the Investment Manager and the Fund
Tamar Goldstein (36)	Assistant Secretary (February 2009)	Vice President (since March 2009, previously Counsel) of the Investment Manager
Cesar A. Trelles (37)	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.

Annual Report  161

The Lazard Funds, Inc. Other Information (unaudited)

Proxy Voting

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

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

Form N-Q

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

Board Consideration of Management Agreements

Lazard Emerging Markets Multi-Strategy Portfolio

At the meeting of the Fund’s Board held on February 10, 2011, the Board considered the approval of the Management Agreement between the Fund, on behalf of the Emerging Markets Multi-Strategy Portfolio, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager referenced the Investment Manager’s written presentation and discussions in connection with the November 17-18, 2010 meeting (the “November Meeting”) for the existing Portfolios relevant to, among other matters, the nature, extent and quality of services provided to the Fund by the Investment Manager, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds complex of 20 active portfolios comprised approximately $22.5 billion of the $140.6 billion of total assets under the management of the Investment Manager and its global affiliates as of December 31, 2010); the Investment Manager’s global investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels; and the Investment Manager’s personnel, resources, financial condition and experience. The Investment Manager’s representatives confirmed that there had been no material changes to the information provided to the Board in connection with the November Meeting. The Board received a presentation on the Emerging Markets Multi-Strategy Portfolio from members of the Emerging Markets Multi-Strategy Portfolio’s anticipated management team, including the strategies to be employed for the Emerging Markets Multi-Strategy Portfolio and the Emerging Markets Multi-Strategy Portfolio’s portfolio management team, including professional biographies.

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 supervision of fund accounting and administration-related services and assistance in meeting legal and regulatory requirements. The Directors also considered the Investment Manager’s infrastructure and agreed that the Emerging Markets Multi-Strategy Portfolio was 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 $22.5 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 and expense ratio information prepared by Lipper, noting the limitations of the two comparison groups chosen by Lipper (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 Fee and Expense Ratios. Representatives of the Investment Manager reviewed the proposed management fee and anticipated expense ratios for the Emerging Markets Multi-Strategy Portfolio and the comparisons provided by

162  Annual Report

Lipper, which compared contractual management fees and expense ratios for the Emerging Markets Multi-Strategy Portfolio to the Groups, and the Directors noted the methodology and assumptions used in the comparisons, including that Lipper’s management fee comparisons and the rankings used therein did not include fixed dollar amounts paid to administrators (which, for the Emerging Markets Multi-Strategy Portfolio, would be paid to the Fund’s third party administrator which is not an affiliate of the Investment Manager). It was noted that such fixed fees were not material to the Emerging Markets Multi-Strategy Portfolio’s expense ratios, but could affect rankings if included in Lip-per’s analysis. The proposed management fee for the Emerging Markets Multi-Strategy Portfolio Institutional Shares and Open Shares was lower than the Group medians, and the expense ratios for the Emerging Markets Multi-Strategy Portfolio Institutional Shares and Open Shares were within the range of those of the funds in the Groups. Representatives of the Investment Manager discussed differences between the Emerging Markets Multi-Strategy Portfolio’s strategy and the funds in the comparison Groups. There were no separately managed accounts or other clients of the Investment Manager with similar investment objectives, policies and strategies (“Similar Accounts”) for the Emerging Markets Multi-Strategy Portfolio.
Performance. Since there were no Similar Accounts, there was no relevant performance to review for the Emerging Markets Multi-Strategy Portfolio.
Investment Manager Profitability and Economies of Scale
Representatives of the Investment Manager noted previous recent discussions regarding considerations of profitability and economies of scale in respect of the Fund’s existing Portfolios and noted that because the Emerging Markets Multi-Strategy Portfolio is newly formed, has not commenced operations and the eventual aggregate amount of the Emerging Markets Multi-Strategy 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 Emerging Markets Multi-Strategy Portfolio and the expected profits to be realized by the Investment Manager and its affiliates from their relationships with the Emerging Markets Multi-Strategy Portfolio and the extent to which economies of scale would be realized as the Emerging Markets Multi-Strategy Portfolio grows and whether fee levels would reflect such economies of scale, if any. It was not expected that the Investment Manager would realize any current profits on the Emerging Markets Multi-Strategy Portfolio until assets grew, and the Investment Manager had agreed to waive its fees and/or reimburse the Emerging Markets Multi-Strategy Portfolio until at least April 30, 2012 to maintain the expense ratios reflected in the Lipper materials. The Board determined to revisit this issue no later than when it next reviewed the investment management fee in connection with renewal of the Management Agreement. Neither the Investment Manager nor its affiliates was expected to receive any significant indirect benefits from the Investment Manager acting as investment adviser to the Emerging Markets Multi-Strategy Portfolio. The Investment Manager’s representatives referred to information previously provided on the Investment Manager’s brokerage and soft dollar practices. The Investment Manager would 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 the Emerging Markets Multi-Strategy Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Emerging Markets Multi-Strategy Portfolio’s Open Shares.
At the conclusion of these discussions, each of the Directors expressed the opinion that he or she had been furnished with sufficient information to make an informed business decision with respect to the approval of the Management Agreement with respect to the Emerging Markets Multi-Strategy Portfolio. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations:
•	The Board concluded that the nature, extent and quality of the services to be provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research services and other services and infrastructure (as discussed above) associated with a $140.6 billion global asset management business.
•	The Board was satisfied with the resources the Investment Manager was to devote to management of the Emerging Markets Multi-Strategy Portfolio.
•	The Board concluded that the Emerging Markets Multi-Strategy Portfolio’s fee to be paid to the Investment Man-

Annual Report  163

	ager was reasonable in light of the considerations discussed above.
•	The Board recognized that economies of scale may be realized as the assets of the Emerging Markets Multi-Strategy Portfolio increase. The Board determined they would seek to have the Investment Manager share any material economies of scale with the Emerging Markets Multi-Strategy Portfolio.

The Board considered these conclusions and determinations in their totality and, without any one factor being dispositive, determined that approval of the Management Agreement for the Emerging Markets Multi-Strategy Portfolio was in the best interests of the Emerging Markets Multi-Strategy Portfolio.

Lazard U.S. Realty Income Portfolio, Lazard U.S. Realty Equity Portfolio and Lazard International Realty Equity Portfolio

At the meeting of the Fund’s Board held on August 3, 2011, the Board considered the approval of the Management Agreement between the Fund, on behalf of the U.S. Realty Income Portfolio, the U.S. Realty Equity Portfolio and the International Realty Equity Portfolio (collectively, 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 referenced the Investment Manager’s written presentation and discussions in connection with the June 1, 2011 meeting (the “June Meeting”) for the existing Portfolios relevant to, among other matters, the nature, extent and quality of services provided to the Fund by the Investment Manager, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds complex of 23 active portfolios comprised approximately $22 billion of the $161.6 billion of total assets under the management of the Investment Manager and its global affiliates as of June 30, 2011); the Investment Manager’s global investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels; and the Investment Manager’s personnel, resources, financial condition and experience. The Investment Manager’s representatives confirmed that there had been no material changes to the information provided to the Board in connection with the June Meeting. The Board received a presentation on the New Portfolios from members of the New Portfolios’ anticipated management team, including the strategies to be employed for the New Portfolios and the New Portfolios’ portfolio management team, including professional biographies.

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 supervision of fund accounting and administration-related services 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 $22 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 June 30, 2011) information prepared by Lipper, noting the limitations of certain comparison Groups. 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 Fee and Expense Ratios. Representatives of the Investment Manager reviewed the proposed management fees and anticipated expense ratios for the New Portfolios and the comparisons provided by Lipper, which compared contractual management fees and projected expense ratios for each New Portfolio to its respective Group, and the Directors noted the methodology and assumptions used in the comparisons, including that Lipper’s management fee comparisons and the rankings used therein did not include fixed dollar amounts paid to administrators (which, for the New Portfolios, would be paid to the Fund’s third party administrator which is not an affiliate of the Investment Manager). It was noted that such fixed fees were not material to the New Portfolios’ ex-

164  Annual Report

pense ratios, but could affect rankings if included in Lipper’s analysis. The proposed management fee for each of the New Portfolios was lower than its respective Group median, and the projected net expense ratio for each New Portfolio was competitive with the relevant Group median. There were no Similar Accounts for the New Portfolios.
Performance. Although the Investment Manager has no history in managing the New Portfolios, the Lipper materials included a presentation of the performance of the funds from which assets were to be transferred to each corresponding New Portfolio (the “Predecessor Funds”), because the portfolio managers of the Predecessor Funds were anticipated to manage the New Portfolios. Although the Predecessor Funds’ performance was favorable on an absolute basis, it was below performance Group medians for the periods presented. Representatives of the Investment Manager discussed differences between the Predecessor Funds and the funds in the comparison Groups and provided supplemental performance information, including performance compared to each Predecessor Fund’s respective benchmark index and a competitor peer grouping, which showed favorable relative performance for each Predecessor Fund since inception in 2008.
Investment Manager Profitability and Economies of Scale
Representatives of the Investment Manager noted previous recent 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 the New Portfolios’ 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 Investment Manager’s representatives stated that they did not expect the Investment Manager to realize any current profits on the New Portfolios until assets grew well beyond the initial assets anticipated to be contributed by the Predecessor Funds, noting the Investment Manager’s agreement to waive its fees and/or reimburse the New Portfolios for three years following the New Portfolios’ commencement of operations to maintain the expense ratios reflected in the Lipper materials. The Board determined to revisit this issue no later than when it next reviewed the investment management fee in connection with renewal of the Management Agreement. Neither the Investment Manager nor its affiliates were expected to receive any significant indirect benefits from the Investment Manager acting as investment adviser to the New Portfolios. The Investment Manager’s representatives referred to information previously provided on the Investment Manager’s brokerage and soft dollar practices. The representatives of the Investment Manager stated that the Investment Manager intends 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 New Portfolios would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the New Portfolios’ Open Shares.
At the conclusion of these discussions, each of the Directors expressed the opinion that he or she had been furnished with sufficient information to make an informed business decision with respect to the approval of the Management Agreement with respect to the New 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 services and other services and infrastructure (as discussed above) associated with a $161.6 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 the New Portfolios’ fees to be paid to the Investment Manager were reasonable in light of the considerations discussed above.
•	The Board recognized that economies of scale may be realized as the assets of the New Portfolios increase. The Board determined it would seek to have the Investment Manager share any material economies of scale with the New Portfolios.

Annual Report  165

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

Lazard Global Fixed Income Portfolio

At the meeting of the Fund’s Board held on November 17, 2011, the Board considered the approval of the Management Agreement between the Fund, on behalf of the Global Fixed Income Portfolio, and the Investment Manager. The Independent Directors were assisted in their review by independent legal counsel and met with counsel in executive session separate from representatives of the Investment Manager.

Services Provided

Representatives of the Investment Manager referenced the Investment Manager’s written presentation and discussions in connection with the June 1, 2011 and August 3, 2011 meetings (the “Previous Meetings”) for other funds advised by the Investment Manager or an affiliate relevant to, among other matters, the nature, extent and quality of services provided to the Fund by the Investment Manager, including a discussion of the Investment Manager and its clients (of which the existing Lazard Funds complex of 26 active portfolios comprised approximately $17.4 billion of the $135.8 billion of total assets under the management of the Investment Manager and its global affiliates as of September 30, 2011); the Investment Manager’s global investment management platform, technology, operational and legal and compliance support and significant marketing infrastructure across broad distribution channels; and the Investment Manager’s personnel, resources, financial condition and experience. The Investment Manager’s representatives confirmed that there had been no material changes to the information provided to the Board in connection with the Previous Meetings. The Board received a presentation on the Global Fixed Income Portfolio from members of the Global Fixed Income Portfolio’s anticipated management team, including the strategies to be employed for the Global Fixed Income Portfolio and the Global Fixed Income Portfolio’s portfolio management team, including professional biographies.

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 supervision of fund accounting and administration-related services and assistance in meeting legal and regulatory requirements. The Directors also considered the Investment Manager’s infrastructure and agreed that the Global Fixed Income Portfolio was 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 $17.4 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 and expense ratio information prepared by Lipper, noting the limitations of the two comparison Groups. 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 Fee and Expense Ratios. Representatives of the Investment Manager reviewed the proposed management fee and anticipated expense ratios for the Global Fixed Income Portfolio and the comparisons provided by Lipper, which compared contractual management fees and expense ratios for the Global Fixed Income Portfolio to the Groups, and the Directors noted the methodology and assumptions used in the comparisons, including that Lipper’s management fee comparisons and the rankings used therein did not include fixed dollar amounts paid to administrators (which, for the Global Fixed Income Portfolio, would be paid to the Fund’s third party administrator which is not an affiliate of the Investment Manager). It was noted that such fixed fees were not material to the Global Fixed Income Portfolio’s expense ratios, but could affect rankings if included in Lipper’s analysis. The proposed management fee and expense ratios for the Global Fixed Income Portfolio Institutional Shares were lower than the relevant comparison Group medians, and the proposed management fee and expense ratio for the Global Fixed Income Portfolio Open Shares were higher than the relevant comparison Group medians.

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

166  Annual Report

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 to be provided to the Global Fixed Income Portfolio. The Directors considered the relevance of the fee information provided for Similar Accounts managed by the Investment Manager, in light of the differences in services provided, to evaluate the appropriateness and reasonableness of the Global Fixed Income Portfolio’s management fees.
Performance. The Directors also considered the performance of a composite of accounts managed by the portfolio managers in a similar strategy to that contemplated for the Global Fixed Income Portfolio.
Investment Manager Profitability and Economies of Scale
Representatives of the Investment Manager noted previous recent discussions regarding considerations of profitability and economies of scale in respect of the Fund’s existing Portfolios and noted that because the Global Fixed Income Portfolio is newly formed, has not commenced operations and the eventual aggregate amount of the Global Fixed Income 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 Global Fixed Income Portfolio and the expected profits to be realized by the Investment Manager and its affiliates from their relationships with the Global Fixed Income Portfolio and the extent to which economies of scale would be realized as the Global Fixed Income Portfolio grows and whether fee levels would reflect such economies of scale, if any. The Investment Manager’s representatives stated that they did not expect the Investment Manager to realize any current profits on the Global Fixed Income Portfolio until assets grew, noting the Investment Manager’s agreement to waive its fees and/or reimburse the Global Fixed Income Portfolio for at least one year following the Global Fixed Income Portfolio’s commencement of operations to maintain the expense ratios reflected in the Lipper materials. The Board determined to revisit this issue no later than when it next reviewed the investment management fee in connection with renewal of the Management Agreement. The Investment Manager’s representatives noted that neither the Investment Manager nor its affiliates were expected to receive any significant indirect benefits from the Investment Manager acting as investment adviser to the Global Fixed Income Portfolio. The Investment Manager’s representatives referred to information previously provided on the Investment Manager’s brokerage and soft dollar practices. The representatives of the Investment Manager stated that the Investment Manager intends 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 Global Fixed Income Portfolio would not bear any related costs other than the 0.25% 12b-1 fee pursuant to the Distribution and Servicing Plan adopted for the Global Fixed Income Portfolio’s Open Shares.
At the conclusion of these discussions, each of the Directors expressed the opinion that he or she had been furnished with sufficient information to make an informed business decision with respect to the approval of the Management Agreement with respect to the Global Fixed Income Portfolio. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations:
•	The Board concluded that the nature, extent and quality of the services to be provided by the Investment Manager are adequate and appropriate, noting the benefits of advisory and research services and other services and infrastructure (as discussed above) associated with a $135.8 billion global asset management business.
•	The Board was satisfied with the resources the Investment Manager was to devote to management of the Global Fixed Income Portfolio.
•	The Board concluded that the Global Fixed Income Portfolio’s fee to be paid to the Investment Manager was reasonable in light of the considerations discussed above.
•	The Board recognized that economies of scale may be realized as the assets of the Global Fixed Income Portfolio increase. The Board determined it would seek to have the Investment Manager share any material economies of scale with the Global Fixed Income Portfolio.
The Board considered these conclusions and determinations in their totality and, without any one factor being dispositive, determined that approval of the Management Agreement for the Global Fixed Income Portfolio was in the best interests of the Global Fixed Income Portfolio.

  Annual Report 167

Certain Index Disclosures

The “Dow Jones U.S. Select Real Estate Securities Index^SM” is a product of Dow Jones Indexes, a licensed trademark of CME Group Index Services LLC (“CME”), and has been licensed for use. “Dow Jones^®”, “Dow Jones U.S. Select Real Estate Securities Index^SM” and “Dow Jones Indexes” are service marks of Dow Jones Trademark Holdings, LLC (“Dow Jones”), have been licensed to CME and have been sub-licensed for use for certain purposes by the Investment Manager. Lazard Realty Income Portfolio and Lazard U.S. Realty Portfolio, which compare their performance to the Dow Jones U.S. Select Real Estate Securities Index^SM, are not sponsored, endorsed, sold or promoted by Dow Jones, CME or their respective affiliates and Dow Jones, CME and their respective affiliates make no representation regarding the advisability of investing in such product(s).

“Wells Fargo Hybrid and Preferred Securities” and “WHPS” are service marks of Wells Fargo & Company. Wells Fargo & Company does not guarantee the accuracy or completeness of the Wells Fargo Hybrid and Preferred Securities REIT Index (“WHPS”) and shall have no liability for any errors, omissions or interruptions to publication. Wells Fargo & Company does not sponsor or advise any product or service that references WHPS, nor does Wells Fargo & Company represent that any use of WHPS by any person is appropriate, suitable or fit for the uses to which it is put.

BofA Merrill Lynch is licensing the BofA Merrill Lynch indices “as is,” makes no warranties regarding the same, does not guarantee the suitability, quality, accuracy, timeliness, and/or completeness of BofA Merrill Lynch indices or any data included in, related to, or derived therefrom, assumes no liability in connection with their use, and does not sponsor, endorse, or recommend any company, or any of its products or services.

168  Annual Report

The Lazard Funds, Inc. Tax Information Year Ended December 31, 2011 (unaudited)

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2011:

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 2011 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		6.62
Global Listed Infrastructure		66.78
International Equity		100.00
International Equity Select		90.60
International Strategic Equity		100.00
International Small Cap Equity		100.00
Emerging Markets Equity		82.66
Developing Markets Equity		39.29
Emerging Markets Equity Blend		66.93
Emerging Markets Multi-Strategy		86.56
Emerging Markets Debt		—
U.S. Realty Income		13.28
U.S. Realty Equity		1.72
International Realty Equity		19.96
U.S. High Yield		—
U.S. Municipal		—
Capital Allocator Opportunistic Strategies		100.00

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		15.67
Global Listed Infrastructure		11.48
International Equity		—
International Equity Select		—
International Strategic Equity		—
International Small Cap Equity		—
Emerging Markets Equity		—
Developing Markets Equity		—
Emerging Markets Equity Blend		—
Emerging Markets Multi-Strategy		—
Emerging Markets Debt		—
U.S. Realty Income		13.21
U.S. Realty Equity		1.96
International Realty Equity		—
U.S. High Yield		—
U.S. Municipal		—
Capital Allocator Opportunistic Strategies		10.30

Pursuant to Section 871 of the Code, the Portfolios have no designated qualified short-term gains for purposes of exempting withholding of tax on such distributions to U.S. nonresident shareholders.

Annual Report  169

NOTES

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The Lazard Funds, Inc.

30 Rockefeller Plaza

New York, New York 10112-6300

Telephone: 800-823-6300

http://www.LazardNet.com

Investment Manager

Lazard Asset Management LLC

30 Rockefeller Plaza

New York, New York 10112-6300

Telephone: 800-823-6300

Distributor

Lazard Asset Management Securities LLC

30 Rockefeller Plaza

New York, New York 10112-6300

Custodian

State Street Bank and Trust Company

One Lincoln Street

Boston, Massachusetts 02111

Transfer Agent and Dividend Disbursing Agent

Boston Financial Data Services, Inc.

P.O. Box 8514

Boston, Massachusetts 02266-8514

Telephone: 800-986-3455

Independent Registered Public Accounting Firm

Anchin, Block & Anchin LLP

1375 Broadway

New York, New York 10018

http://www.anchin.com

Legal Counsel

Stroock & Stroock & Lavan LLP

180 Maiden Lane

New York, New York 10038-4982

http://www.stroock.com

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

Lazard Asset Management LLC
30 Rockefeller Plaza
New York, NY 10112-6300
800-823-6300

www.LazardNet.com

© 2012 Lazard Asset Management LLC

12/11 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 (the “Code”). The Registrant amended its Code during the period covered by this report. These amendments consisted of the following: (1) removing provisions from the list of responsibilities of each Covered Officer (as defined in the Code) requiring the Covered Officer to report at least annually any affiliations or other relationships related to conflicts of interest indicated in the Registrant's Directors and Officers Questionnaire and to disclose any material ownership interest in, or any consulting or employment relationship with, any of the Registrant's service providers, other than the Adviser (as defined in the Code) or any affiliated person thereof; (2) changing the entity to which the CLO (as defined in the Code) must report in the event of any matter that the CLO believes is a violation of the Code to the Audit Committee of the Registrant's Board of Directors (the "Board") instead of the Board; (3) providing that, if the Audit Committee concurs with the CLO that a violation of the Code has occurred, the Audit Committee will inform and make a recommendation to the Board; (4) making the Audit Committee responsible for granting any waivers sought by a Covered Officer; (5) noting that the Registrant's principal underwriter's code of ethics under Rule 17j-1 under the Investment Company Act (as defined in the Code) contains separate requirements applying to the Covered Officers and others and is not part of the Code; and (6) certain other stylistic and non-substantive changes.

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 $593,500 in 2010 and $778,650 in 2011.

(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 $113,300 in 2010 and $161,900 in 2011. 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 $113,300 in 2010 and $161,900 in 2011. 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 INVESTMENTCOMPANIES.

Not applicable.

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

Not applicable.

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

Not applicable.

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

There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board 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    June 8, 2012

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    June 8, 2012

By       /s/ Stephen St. Clair   

Stephen St. Clair

Chief Financial Officer

Date    June 8, 2012