UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number       811-06312

The Lazard Funds, Inc.

(Exact name of registrant as specified in charter)

30 Rockefeller Plaza

New York, New York 10112

(Address of principal executive offices)           (Zip code)

Nathan A. Paul, Esq.

Lazard Asset Management LLC

30 Rockefeller Plaza

New York, New York 10112

(Name and address of agent for service)

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

Date of fiscal year end:    12/31

Date of reporting period:  12/31/12

ITEM 1. REPORTS TO STOCKHOLDERS.

December 31, 2012

Lazard Funds Annual Report

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

The Lazard Funds, Inc. Table of Contents

2	A Message from Lazard
3	Investment Overviews
18	Performance Overviews
39	Information About Your Portfolio’s Expenses
43	Portfolio Holdings Presented by Sector
45	Portfolio Holdings Presented by Region and Credit Rating
46	Portfolios of Investments
46	Lazard U.S. Equity Concentrated Portfolio
47	Lazard U.S. Strategic Equity Portfolio
49	Lazard U.S. Mid Cap Equity Portfolio
51	Lazard U.S. Small-Mid Cap Equity Portfolio
53	Lazard Global Listed Infrastructure Portfolio
55	Lazard International Equity Portfolio
57	Lazard International Equity Select Portfolio
59	Lazard International Strategic Equity Portfolio
61	Lazard International Small Cap Equity Portfolio
63	Lazard Emerging Markets Equity Portfolio
65	Lazard Developing Markets Equity Portfolio
67	Lazard Emerging Markets Equity Blend Portfolio
70	Lazard Emerging Markets Multi-Strategy Portfolio
82	Lazard Emerging Markets Debt Portfolio
91	Lazard U.S. Realty Income Portfolio
93	Lazard U.S. Realty Equity Portfolio
94	Lazard International Realty Equity Portfolio
96	Lazard U.S. High Yield Portfolio
101	Lazard U.S. Municipal Portfolio
104	Lazard Global Fixed Income Portfolio
108	Lazard Capital Allocator Opportunistic Strategies Portfolio
110	Notes to Portfolios of Investments
114	Statements of Assets and Liabilities
120	Statements of Operations
126	Statements of Changes in Net Assets
135	Financial Highlights
156	Notes to Financial Statements
178	Report of Independent Registered Public Accounting Firm
179	Board of Directors and Officers Information
182	Other Information
184	Tax Information

Please consider a Portfolio’s investment objectives, risks, charges and expenses carefully before investing. For more complete information about The Lazard Funds, Inc. (the “Fund”), you may obtain a prospectus or summary prospectus by calling 800-823-6300, or online, at www.LazardNet.com. Read the prospectus or each Portfolio’s summary prospectus carefully before you invest. The prospectus 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,

Global equities rebounded strongly in 2012, with several major stock indices recording gains in the low double digits. Fixed-income markets continued to perform well. Although uncertainty created by global deleveraging and political transition gave investors pause throughout the year, sentiment was buoyed by looser monetary policy, progress toward resolving the euro zone debt crisis, and an upturn in U.S. house prices.

Corporate profitability and cash generation remain robust and valuations remain attractive by historical standards. During the year, emerging-market equities modestly outperformed their developed-market counterparts amid central bank action and signs of greater economic stability, both globally and in specific regions and countries, particularly China.

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 take advantage of these opportunities. We are committed to leveraging our strengths to help you, a valued shareholder in Lazard Funds, achieve your financial goals.

We 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

2   Annual Report

The Lazard Funds, Inc. Investment Overviews

U.S. Equities

During the first quarter of 2012, the U.S. market rallied due to heightened global growth prospects, continued loose monetary policy, and positive developments in the European debt crisis. In the second quarter, the market declined, primarily due to concerns about Europe, particularly the prospect that Greece would exit the euro zone and cause subsequent contagion in the financial markets. Investors were also disappointed as U.S. employment and economic indicators were lower than expected. During the third quarter of 2012, the market gained as investors were encouraged by a relatively strong earnings season and improving house prices. The U.S. Federal Reserve (the Fed) announced another round of quantitative easing and the European Central Bank (ECB) declared it would begin purchasing sovereign debt in the secondary market alongside the European Stability Mechanism (ESM) for countries which agreed to certain conditions, both of which buoyed markets. While the market was volatile during the fourth quarter due to the presidential election and worries about the impending fiscal cliff, there were bright spots over the period. Housing continued to strengthen and third-quarter GDP growth was revised to 3.1%.

International Equities

The twelve-month period ended December 31, 2012 was eventful and volatile, but ultimately ended with an increase for international equity markets. Slowing global economic growth concerned investors. Sovereign debt problems also weighed on investor sentiment; however, European Union (EU) and ECB actions helped allay market concerns. In December, the ECB announced a plan to backstop the banking system through liquidity provisions. The Long Term Refinancing Operation (LTRO) program provided over a trillion dollars of three-year financing at 1% interest rates, easing financing concerns for banks and sovereigns. In June, an EU summit proposed two things: the establishment of a single banking supervisor, and the allowance for the ESM to directly inject capital into troubled banks. In July, ECB President Mario Draghi signaled that the bank was committed to preserving the euro zone, and would do “whatever it takes” to do so. In September, the Outright Monetary Transactions program, focused on unlimited purchases of sovereign bonds, was introduced. Lastly, Germany’s Constitutional Court ruled in favor of the ESM, the euro zone’s permanent bailout facility, bolstering investor confidence. In the United States, uncertainty leading up to the November election, and surrounding the fiscal cliff, was tempered as the Fed announced further quantitative easing. Fed Chairman Ben Bernanke stated that the quantitative easing, which focused on mortgage-backed securities, would remain open-ended until the U.S. labor market improved, raising some concerns internationally. In December, Standard & Poor’s upgraded Greece’s credit rating by six notches from “selective default” to “B-” following the country’s demonstration of its commitment to the euro, while the ECB announced it would accept Greek government debt as collateral. Elsewhere, in Japan, the Liberal Democratic Party reclaimed power in the December elections, fueling speculation of policy efforts to stimulate inflation and change Bank of Japan inflation targets. In emerging markets, the Chinese government underwent its once-a-decade leadership transition, which is expected to be followed by stimulative policies. In Latin America, Mexico’s new government assumed control. Mexico and Peru both reported robust GDP numbers in November while Brazil disappointed, increasing pressure on the government to impose pro-growth reforms.

Emerging Markets Equities and Debt

Once more, issues in the developed world had a dominant effect on capital markets worldwide in 2012. Pressured by concern over the adequacy of global economic growth, but supported by universally low interest rates and highly stimulative central bank policies, the prices of equities in the developing world fluctuated significantly during 2012. Close to the year’s beginning, the ECB introduced its LTRO as a stabilizing tool, which bolstered global capital markets’ returns markedly. However, this was significantly counterbalanced by new, serious concerns regarding European debt sustainability in the second quarter, and commodity prices finished the period significantly weaker. In the third quarter, ECB President Mario Draghi publicly stated that the bank would do “whatever it takes” to preserve the euro and stabilize the European economy. This comment, in addition to other stimulatory policy activity from the ECB, reassured markets substantially. U.S. President Barack Obama’s re-election in November, and his focus on increasing tax revenues in order to avert the fiscal cliff of automatic cost reductions and new taxes, finished the year on a shrill but ascending note. Over each of the months in 2012, emerging markets gained relatively strongly, rising by more than 18% in total for 2012, as measured by the Morgan Stanley Capital International (MSCI^®) Emerging Markets Index (the EM Index). Returns were positive across all regions, as Asian shares performed

Annual Report   3

marginally worse than equities in the eastern European, Middle Eastern, and African (EMEA) region. Although still positive, performance in Latin America was held back by its substantial materials and energy sector exposures and sensitivity.

With the exception of Argentina, which is not an index constituent, other Latin American markets recorded positive returns. Brazilian equities finished flat, restrained by poor share performance from oil and gas companies and some materials exporters, as well as by the effects of periodic anti-corporate rhetoric from President Dilma Rousseff. Elsewhere in the region, countries such as Colombia and Peru had excellent performance, where stable economic conditions were accompanied by sensible economic policies. Mexican equities also recorded a strong year, reinforced by the election of President Enrique Peña Nieto. Despite the Argentinean government’s partial expropriation of YPF, the recent announcement of higher gas tariffs in the country, as well as a possible exploration and production agreement, helped the company’s share price recover some of its decline.

Almost all Asian emerging markets performed positively over the year. China and the Philippines were among the best performers, aided by improving economic conditions. In China, concerns about economic growth persisted following its official guidance of 7.5% economic growth in the first half of the year until some encouraging Purchasing Managers’ Index (PMI) readings appeared to change the sentiment. The autumn unveiling of the Chinese Communist Party’s new Politburo Standing Committee appeared to reinvigorate the country’s economic direction. The Philip-pine economy has also endured a long recovery period, but the government’s anti-corruption efforts have not gone unnoticed. Despite a persistently divided political environment, Thai shares were aided by signs of greater economic activity and rose significantly. The broad strength of semiconductor company stocks had a positive effect on such companies in South Korea and Taiwan. Despite beginning the year at relatively expensive valuations, Indian equities continued to generate decent rates of return, helped by the Reserve Bank’s accommodative monetary policy. Indonesia, which had been impressive in the 2009-2011 period, generated muted returns during the year, to some degree due to its vulnerability to higher inflation.

Markets in the EMEA region exhibited strong performance during 2012. Despite the European sovereign debt crises and austerity programs, shares in the Czech Republic and Hungary finished higher. Poland’s resilient economy recorded a market rise of almost 40%. Elsewhere, following President Mohammed Morsi’s election as Egypt’s first democratically elected head of state, and despite other political factors, Egyptian shares also rose considerably during the year. Russian equities were generally supported by reasonable crude oil prices and corporations commenting publicly concerning better capital management and corporate governance. Finally, Turkish equities were the best performers of any emerging-market country, aided by low valuations, strong corporate profits, and a lesser need for unorthodox monetary policy.

In terms of sector returns, health care, financials, information technology, and consumer staples performed relatively well. The energy, materials, utilities, and telecom services sectors underperformed the EM Index.

Emerging-market fixed-income markets closed out the last month of 2012 with solid returns, capping a strong year for the asset class. Dollar-denominated sovereign and corporate debt, as represented by the JPMorgan EMBI Global Diversified^® Index and the JPMorgan CEMBI Diversified^® Index, respectively, both posted returns of nearly 3% in the fourth quarter and 15% and 18%, respectively, for the year, while local markets, as measured by the JPMorgan GBI-EM Global Diversified^® Index, rebounded and went on to post returns in excess of 4% for the fourth quarter and nearly 17% for the year.

With few exceptions, growth in emerging market countries rebounded in the fourth quarter of 2012, which continued a year-long trend of lower risk premia for fixed-income investments in these countries. Furthermore, the improved outlook for global growth conditions led to increased flows into local markets in the last few months of 2012, which forced foreign exchange markets to recover some of their underperformance from earlier in the year.

Real Estate Securities

The global listed property markets continued to perform very well in an environment where we are experiencing significant earnings pressure in addition to negative macro influences. We see an environment where global property is

4   Annual Report

likely to continue to outperform given the positive spread to government bonds and direct property markets globally. In addition, we believe earnings certainty in an environment where we are likely to see general equities earnings downgrades will augur well for property stocks globally. Furthermore, with distribution yields above 5% and earnings growth in Asian markets in the mid teens, we see positive alpha generation in quality real estate investment trusts (REITs) plus well-exposed and managed Asian property companies.

On a regional basis we still remain positive on Japanese property companies given growing evidence that the office and residential markets are in a recovery phase of the property cycle. In addition, the Bank of Japan’s aggressive stimulatory measures and asset buyback program support our positive view. We continue to believe Chinese property companies remain undervalued relative to global peers and the fundamentals around volume activity and supply pressures have been alleviated.

In Brazil, we remain positive on the homebuilders but less on Brazilian property companies due to the strong rally which has made valuations less appealing. The Brazilian market offers superior mortgage market rates with favorable supply demand dynamics.

In continental Europe selective value has emerged in single stock ideas. However, macroeconomic headwinds remain within these markets. Therefore we are targeting companies that we believe are insulated from these potential negative macro influences.

In the United States, we believe it is likely that the environment in 2013 will be similar to that of 2012, but more subdued due to slower asset-level price growth, as much of real estate’s credit repair and the decline in interest rates appear to have passed. Hence, we expect more moderate REIT returns. In 2013, we believe that the real estate market will continue to benefit from its attractive positioning relative to fixed-income assets, and will have modest income growth and further enhanced underlying credit quality. We also believe REITs will specifically benefit from continued dividend growth and their ability to utilize a low cost-of-capital advantage over private investors to gain market share. Possibly the most pertinent question for the REIT market in 2013 is whether the asset class will continue to be misunderstood by investors, who may view the asset class’s torrid performance over the last four years as normal, and would therefore be disappointed with performance once it begins reverting back to more reasonable expectations for an asset class that has historically generated much of its total return from income.

U.S. High Yield Fixed Income

High-yield market returns in 2012 proved surprisingly strong as investors flooded the space seeking current income, and companies took advantage by issuing debt amid the low interest rate environment. The high-yield sector produced strong positive returns in 2012 with the Bank of America Merrill Lynch High Yield Master II^® Index (the High Yield Index) returning 15.58%, materially outstripping the Barclays Capital U.S. Aggregate Bond^® Index that returned 4.22% and the investment-grade corporate sector that returned about 10.37%. Equities modestly outperformed with the S&P 500^® Index returning 16.00%.

High-yield market spreads tightened by approximately 190 basis points (bps) over the year, including an approximate 18 bps fall in intermediate Treasury yields. BB spreads tightened by about 135 bps, while CCC spreads tightened by 373 bps. The High Yield Index ended 2012 at a spread of 531 bps over Treasuries. For the year, new high-yield bond issuance in the U.S. market was approximately $368 billion. Mutual fund flows were strong and totaled about $31 billion. The Moody’s trailing twelve-month issuer default rate was 3.2% as of December 31, 2012, up from 1.9% in December of 2011.

U.S. Municipal Fixed Income

Fixed-income markets have become one of the most challenging asset classes for investors. Intervention from the Fed and other central banks has caused significant dislocation, as financial repression remains the most popular form of monetary policy. Each subsequent buying program has further distorted capital market functioning, as the Fed attempts to use monetary policy to compensate for the absence of fiscal policy from politicians in Washington, D.C. As a result, the Fed has created unprecedented market conditions. Taking all of these extraordinary factors into account, the pathway ahead is obscured and uncertain. In 2012, U.S. interest rates were lower than at any point since 1925. These low rates have persisted, supported by central bank policy and a pattern of panic buying from investors seeking what they perceive to be safe assets in developed economies.

Annual Report   5

Against this backdrop, the municipal market ended the year on a substantially weaker note. The acceleration in demand following the presidential election faded in December as the uncertainties surrounding the fiscal cliff and possible changes to the status of tax-exempt securities weighed heavily on the sector, resulting in a reversal in the trend of mutual fund inflows. In fact, December not only marked an end to 38 consecutive weeks of municipal fund inflows, but also registered the largest average weekly net outflows since April 2011. As a result, December produced the lowest monthly municipal sector returns in two years and significantly underperformed U.S. Treasuries. For the fourth quarter and the full-year 2012, however, the municipal sector outperformed versus Treasuries.

Overall, municipal bonds continue to benefit from strong investor demand. From a supply perspective, new issue supply in 2012 outpaced that in 2011 by approximately 29%, the bulk of which was due to a large number of refunding issues. New financings were muted in comparison, highlighting issuers’ tentativeness to increase overall debt. The strong demand for tax-adjusted income in this challenging environment, coupled with the manageable supply, rewarded risk-taking, as lower-rated and longer-duration issues posted the highest returns in 2012.

Global Fixed Income

Two themes captured financial market behavior during the first quarter of the year: Reversion to the mean and European crisis fatigue. Despite lingering uncertainty regarding Greece, Spain, and the rest of peripheral Europe, and negative credit rating actions on European sovereigns and banks, risk appetite resurfaced—inciting a vigorous equity rally, tightening of credit spreads, and a generally weaker U.S. dollar. Abundant liquidity provided by the LTRO, in addition to an accommodative U.S. central bank, added fuel to the fire, to the benefit of growth-sensitive investments. The buoyant mood was quickly reversed, as the second quarter brought heightened volatility with core government rates generally falling around the world as euro-related risk aversion increased, and global growth expectations weakened. Lower inflationary pressures in many countries also reinforced the downward movement in rates. However, a better-than-expected EU summit in late June along with the ECB’s September “OMT” (an outright monetary transactions program) announcement spurred a rally in peripheral markets as investors regained confidence that European officials would work to backstop the debt crisis. A pattern of risk-on/risk-off market behavior continued for the remainder of the year, with a strong stimulus-based third-quarter rally (along with some better economic data) contributing to the general risk-on sentiment for the remainder of 2012.

In 2012, 10-year U.S. government bond yields dropped from 2.4% (a high in mid-March) to a historical low of 1.4% on June 1 on the heels of surprisingly weak employment data, and re-tested similar low levels in late July—only to rebound to 1.75% by the end of the year. Other markets followed suit, including German 10-year maturity bunds, whose yield reached a new low below 1.2% at the beginning of June, but ended the third quarter at 1.4%, to finish the year in between at 1.3%. In contrast, Italian and Spanish bonds initially underperformed and were not able to sustain yield levels below 5%, as their 10-year maturity bond yields backed up to 7.1% and 7.6%, respectively, by late July. That volatile price action highlights the sensitivity (and market addiction) to central bank liquidity, and the short-lived benefits of the LTRO initiative in Europe. However, ECB President Mario Draghi’s “whatever it takes” speech, also in late July, along with the September OMT announcement, was enough to boost market optimism and Italian and Spanish 10-year bond yields staged an impressive rally back down to 4.5% and 5.4%, respectively by year-end.

Global investment-grade corporate bond issuance was $1.7 trillion and global high-yield issuance reached $420 billion in 2012. These new bonds were easily absorbed by the market, and strong flow dynamics outweighed the fallout from lackluster earnings reports released by various corporations early in the fourth quarter. In November, there was evidence of profit-taking in historically riskier sectors, such as high-yield and emerging markets; but this was short-lived as investment flows into these sectors rebounded strongly in December. Longer-maturity and lower-credit-quality securities performed best during the year and sovereign external debt also continued to benefit, even outpacing returns for high-yield bonds. Appetite for higher-rated issues also continued, and Amazon came to market for the first time since 1999, issuing $3 billion in debt at spreads well below 100 bps over Treasuries for three tranches. Another notable new issue was Chile (AA- credit rating), which issued a 10-year maturity U.S. dollar bond yielding 2.38% (about 55 bps more than U.S. Treasuries), a historic low for a Latin American country.

6   Annual Report

Lazard U.S. Equity Concentrated Portfolio¹

For the year ended December 31, 2012, the Lazard U.S. Equity Concentrated Portfolio’s Institutional Shares posted a total return of 16.83%, while Open Shares posted a total return of 16.51%, as compared with the 13.90% return for the Russell 1000 Value/S&P 500 Linked Index², and the 16.00% return for the S&P 500 Index.

Stock selection in the health care sector contributed to performance. Shares of biopharmaceutical company Gilead Sciences rose after the company announced a number of positive developments in its emerging hepatitis C franchise, further reinforcing its favorable positioning within the hepatitis C drug development space. Additionally, FDA approvals, the launch of several products in Gilead’s core HIV business, and raised guidance toward year-end bolstered investor sentiment. Stock selection in the materials sector also helped returns. Metals streaming company Silver Wheaton rose after the company reported strong earnings and announced that it had entered into an agreement to acquire the silver production of two mines, which allowed management to raise its production guidance.

In contrast, an underweight position in financials detracted from performance, as the sector was the best performer in the benchmark during the year. The Portfolio was particularly hurt by its underweight of large diversified financial services firms, including Citigroup, Goldman Sachs Group, and Bank of America, which rallied as the market became more comfortable with the fundamentals of the businesses throughout the year. Investor confidence also increased as capital and regulatory requirements became less uncertain. Citigroup and Goldman Sachs were sold from the Portfolio in connection with the Portfolio’s strategy change, while Bank of America was sold prior to the change, in March. Stock selection and an underweight position in the energy sector also hurt returns. Shares of exploration and production company Hess declined after the company reported weak earnings and issued disappointing guidance. The position was sold in connection with the strategy change.

Lazard U.S. Strategic Equity Portfolio

For the year ended December 31, 2012, the Lazard U.S. Strategic Equity Portfolio’s Institutional Shares posted a total return of 14.56%, while Open Shares posted a total return of 14.10%, as compared with the 16.00% return for the S&P 500 Index.

Stock selection and an overweight position in the health care sector contributed to performance. Shares of Baxter International, a company that focuses on treatments for hemophilia, kidney disease, immune disorders, and other chronic medical conditions, rose after the company reported strong earnings and increased its dividend and share repurchase program. In December, the company announced that it would be acquiring dialysis machine maker Gambro. Stock selection and an overweight position in the consumer discretionary sector also helped returns. Shares of cable and media operator Comcast rose after the company reported strong earnings, led by consistently solid performance in its cable division. Management also announced an increase in both its dividend and share repurchase programs during the year.

In contrast, stock selection in the materials sector detracted from performance. Shares of metallurgical coal producer Walter Energy fell after the company reported disappointing earnings, stemming from a slowdown in global steel demand. Stock selection in the information technology sector also hurt returns. The Portfolio’s relative underweight in Apple detracted from returns as the company had a robust return during the year.

Lazard U.S. Mid Cap Equity Portfolio

For the year ended December 31, 2012, the Lazard U.S. Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 5.76%, while Open Shares posted a total return of 5.44%, as compared with the 17.28% return for the Russell Midcap^® Index.

Stock selection in the energy sector contributed to performance. Shares of Marathon Petroleum rose after the company reported robust earnings, primarily due to retail fuel and merchandise margins as well as corporate expense. The company also completed a significant portion of a $2 billion share repurchase program. The stock was sold from the Portfolio as it neared its valuation target. Stock selection and an underweight position in the industrials sector also helped returns. Shares of private correctional facilities operator Corrections Corporation of America rose as the company announced the initiation of a quarterly cash dividend of $0.20 per share beginning in June 2012. The stock also appreciated on speculation that it would be converted into a REIT. Shares of Thomas & Betts rose after the company was offered a buyout from a competitor. The position was subsequently sold from the Portfolio.

Annual Report   7

In contrast, stock selection in the information technology sector detracted from performance. Shares of chipmaker Marvell Technology declined after the company posted weak results due to a softening personal computer and hard-disk-drive market. The stock was sold from the Portfolio during the fourth quarter. Shares of NetApp, a storage and data management solution provider, declined after the company reported guidance which was lower than expected due to the macroeconomic environment. Stock selection in the consumer discretionary sector also hurt returns. Shares of casino game manufacturer International Game Technology declined after reporting results that disappointed the market. The expectation shortfall was driven by a significant decline in new units due to a lack of casino openings, and lower margins in the company’s game operations business due to lower interest rates. We sold the position during the first quarter.

Lazard U.S. Small-Mid Cap Equity Portfolio

For the year ended December 31, 2012, the Lazard U.S. Small-Mid Cap Equity Portfolio’s Institutional Shares posted a total return of 15.45%, while Open Shares posted a total return of 14.97%, as compared with the 17.88% return for the Russell 2500^® Index.

For the year, stock selection in the energy and consumer discretionary sectors detracted from performance, while stock selection in the industrials and financials sectors helped returns.

The main detractor in the energy sector was GulfMark Offshore, a provider of marine support services to the energy industry. Shares of the company declined after it announced earnings in May that missed expectations. We exited the position in September 2012. Key Energy Services, a provider of onshore, rig-based well services, and Rosetta Resources, an oil and gas exploration and production company, also detracted from returns in the energy sector.

Performance in the consumer discretionary sector was hurt by Tempur-Pedic International, a mattress manufacturer, after the company announced lower-than-anticipated earnings guidance. We exited the position in Tempur-Pedic in June 2012. Modine Manufacturing, a manufacturer of heat-transfer and heat-storage technology products for the automotive market, also detracted from returns. Shares of the company declined after it reduced its full-year earnings target during the year amid slowing sales in Europe.

In the industrials sector, TriMas, a diversified manufacturer for the commercial, manufacturing, and consumer markets, outperformed throughout the year based on consistently strong earnings. MasTec, a specialty contractor for buildings, installation, and maintenance, outperformed due to better-than-expected revenues and increased revenue guidance announced in the third quarter. A position in Regal-Beloit, which manufactures solutions to control motion, torque, and electrical products, performed well based on stronger-than-expected guidance early in the year and on maintenance of their longer-term guidance throughout the year.

Extra Space Storage, a REIT focused on self-storage properties, was the best performer in the financials sector. The company consistently beat consensus earnings estimates throughout the year, and there is general optimism about the potential of future earnings from the company’s 2012 acquisitions. Shares of PacWest Bancorp, a provider of commercial banking services focused in California, outperformed based on generally improved conditions and growth in the loan market, a recovery in California, and optimism surrounding an acquisition the company announced in November. Shares of Wintrust Financial, a provider of community-based banking services, also helped performance in the sector.

Lazard Global Listed Infrastructure Portfolio

For the year ended December 31, 2012, the Lazard Global Listed Infrastructure Portfolio’s Institutional Shares posted a total return of 18.05%, while Open Shares posted a total return of 17.54%, as compared with the 12.38% return for the UBS Global 50/50 Infrastructure & Utilities^® Index and 15.83% return for the MSCI World^® Index.

The Portfolio’s Italian toll road holdings, Atlantia and Societa Iniziative Autostradali e Servizi, were strong contributors to performance as they exhibited positive returns due to a combination of alleviation of the perception of sovereign risk and strong underlying financial performance, despite weak traffic levels. Again in 2012, tolls increased as planned, which helped offset traffic decline from a profitability stand point. Moreover, from a regulatory view point, the concession grantor authority has been transferred to the authority currently in charge of electricity and gas. Its track record in

8   Annual Report

terms of political independence and transparency is excellent, which we think is crucial in enabling these stocks to converge to fair value over time.

Australian company DUET Group contributed positively following a general market trend toward defensive assets with strong dividend profiles. In a domestic market which has seen government 10-year bond yields fall from almost 5% to under 3%, we believe that solid, dependable and growing income streams are highly attractive to investors. The stock also benefited from an announcement in July that an agreement was reached with AMP Capital and Macquarie Group to internalize DUET’s management.

In a period of strong performance for the Portfolio, there were few stocks that detracted from performance. U.S. transportation companies CSX and Norfolk Southern were among the largest detractors from performance over the year. The largest driver of poor performance was the impact of low natural gas prices in the United States, which resulted in lower coal-haulage volumes, due to electric utilities switching fuels from coal to natural gas. Both domestic and export coal volumes were lower. Grain volumes were also lower due to the drought that began in the spring of 2012. This was partially offset by gains in pricing; as both CSX and Norfolk Southern continued to achieve pricing gains above the level of rail-cost inflation. Our investment thesis for CSX and Norfolk Southern includes both inflation-plus pricing as well as ongoing productivity gains.

Lazard International Equity Portfolio

For the year ended December 31, 2012, the Lazard International Equity Portfolio’s Institutional Shares posted a total return of 22.70%, while Open Shares posted a total return of 22.30%, as compared with the 17.32% return for the MSCI EAFE^® Index (Europe, Australasia, Far East), or the EAFE Index.

The Portfolio’s strong outperformance over the twelve months ended December 31, 2012 was primarily driven by stock selection. Within the materials sector, Australian building materials supplier James Hardie Industries performed well due to strong demand from a recovering U.S. housing industry. A position in U.K. global beverage can manufacturer Rexam contributed to relative returns due to progress in restructuring and operational performance. In the information technology sector, South Korean electronics producer Samsung continued to outperform on strong smart-phone sales.

The Portfolio was negatively impacted by low exposure to, and stock selection in, the financials sector. Banco do Brasil detracted from relative returns as the government increased pressure on banks to reduce borrowing costs thereby impacting net interest margins. In addition, Swiss financial services firm Credit Suisse Group underperformed following a report which called for a strengthening of its capital base. Both positions were exited during the year. Low exposure to Asia ex-Japan also detracted from relative returns.

Lazard International Equity Select Portfolio

For the year ended December 31, 2012, the Lazard International Equity Select Portfolio’s Institutional Shares posted a total return of 21.59%, while Open Shares posted a total return of 21.23%, as compared with the 16.83% return of the MSCI All Country World^® Index (ACWI) ex-U.S.

The Portfolio’s strong outperformance over the twelve months ended December 31, 2012 was primarily driven by stock selection. Within the information technology sector, German software company SAP benefited the Portfolio due to an increase in software license sales, market share gains, and strong sales performance driven by new product categories. In the industrials sector, a position in Swedish lock maker Assa Abloy positively impacted the strategy following decent growth in emerging markets, particularly within Asia, Africa, and South America. A position in Turkish conglomerate Koc Holding also outperformed due to a successful tender to operate bridges and roadways in Turkey.

The Portfolio was negatively impacted by low exposure to the financials sector. The Portfolio was also negatively impacted by stock selection in Japan, where holdings of Yamada Denki and SoftBank lagged. Retailer Yamada Denki underperformed due to slowing demand for televisions and digital recorders, while shares of telecom services provider SoftBank declined following its announced acquisition of 70% of Sprint Nextel. The position in Yamada Denki was sold during the year.

Lazard International Strategic Equity Portfolio

For the year ended December 31, 2012, the Lazard International Strategic Equity Portfolio’s Institutional Shares posted a total return of 25.00%, while Open Shares posted a

Annual Report   9

total return of 24.74%, as compared with the 17.32% return for the EAFE Index.

The Portfolio rose substantially more than the EAFE Index in 2012, driven by stock selection across a number of sectors. In the energy sector, Australian refining and marketing company Caltex Australia rose as it shut down a key refinery, while CGG Veritas benefited from an improving seismic demand environment. These offset a disappointing value realisation from Rockhopper Exploration’s Falklands oil asset; we sold the position during the fourth quarter. In the materials sector, shares of cladding company James Hardie Industries gained alongside the recovery in the U.S. housing market, while the defensive business models of Rexam, Kerry Group, and Symrise re-valued in 2012. In the industrials sector, a position in Ryanair Holdings gained as its slower growth allowed the company to return cash to shareholders and raise route profitability, while in the consumer discretionary sector Japanese sportswear brand Asics had strong organic sales growth. A recovery in China helped luxury holding Christian Dior, offsetting the Portfolio’s loss on Carnival shares after the cruise ship tragedy early in the year. The position in Carnival was exited during the first quarter. In the media industry, Informa improved from a low valuation base, Indonesian television company Media Nusantara Citra had very strong revenue and profit growth, and shares of Sky Deutschland more than doubled as key issues regarding financing and sports rights were successfully resolved. In the consumer staples sector, Anheuser-Busch InBev continued to have strong profit growth in both its Brazilian and U.S. markets, while Associated British Foods had its discount retail business Primark take off in key markets outside the United Kingdom. In the health care sector, two restructuring stocks, Merck and Sanofi, rose from low levels, while South African holdings Aspen Pharmacare Holdings and Life Healthcare Group Holdings rose as they reported very encouraging results. The Portfolio also benefited from its low exposure to the weak telecom services and utilities sectors.

In contrast, Japanese retailers Yamada Denki and Don Quijote underperformed. Shares of Yamada Denki declined for structural reasons, and the position was sold in the first quarter, while Don Quijote missed the late cyclical rally in Japan. Although Kasikornbank in Thailand performed well, and despite strong showings from insurance holdings Prudential and Sampo, the Portfolio’s low overall exposure to the banks and real estate industries was detrimental to performance.

The financials sector’s performance was further hampered by margin and return pressure at Julius Baer. The position was sold during the third quarter. Owning SoftBank in the telecom services sector also hurt returns as the stock fell after the company announced the acquisition of U.S. mobile carrier Sprint. We exited our position in SoftBank during the fourth quarter.

Lazard International Small Cap Equity Portfolio

For the year ended December 31, 2012, the Lazard International Small Cap Equity Portfolio’s Institutional Shares posted a total return of 22.28%, while Open Shares posted a total return of 21.96%, as compared with the 20.00% return for the EAFE Small Cap Index.

The Portfolio benefited from stock selection in continental Europe and Asia (excluding Japan), as well as from a moderately underweight position in Japan as the market lagged the overall Portfolio performance in U.S. dollar terms and the yen weakened significantly at the end of the year. In contrast, stock selection in the United Kingdom detracted from performance. On a sector basis, stock selection in financials, health care, and energy added value, while stock selection in consumer staples and consumer discretionary detracted from performance.

U.K.-listed GlobeOp Financial Services contributed positively in the financials sector in the year. GlobeOp provides financial and accounting services to money managers, primarily hedge funds. In early January, the company announced that two separate private equity firms expressed interest in making a bid for the company. In March, SS&C Technologies, a U.S.-based competitor, made an offer to acquire the company and concluded the deal in July.

The Germany-based CompuGroup Medical also added to performance in continental Europe and the health care sector for the year. The company provides information systems and data processing services to physicians, dental offices, hospitals, and clinics that are used for the organization and control of medical documentation, as well as for the management and administration of office records and invoices. The company reported a strong second quarter with robust organic growth in Europe and a clear turnaround in the U.S. business following the integration of several acquisitions. By the end of the first half of 2012, CompuGroup had already reached its profit margin target for the full year, and has re-

10  Annual Report

cently upgraded earnings guidance for this year. The portfolio management team believes there is potential for continued organic growth and improved profitability, and as such, the Portfolio continues to hold the shares.

JAFCO, Japan’s largest venture capital firm and an affiliate of Nomura Securities, was a positive contributor to performance in the financials sector in 2012. JAFCO is expected to begin marketing a new fund in the second half of 2013 and, for this and other reasons, the portfolio management team believes JAFCO can continue to improve its profit profile and maintained the Portfolio’s investment in the security.

Dr.Ci:Labo, a Japanese pharmaceutical cosmetics company, detracted from performance in the consumer discretionary sector. The share price weakened in the first half of the year after the company revised down its earnings outlook for the year ending in July.

Kapsch TrafficCom, an Austrian stock and supplier of traffic and electronic fee collection systems, detracted from performance in 2012 primarily in August, when the company announced a delay and performance-related issue on one of its many projects in Poland.

Kenmare Resources, an Irish stock, also detracted from performance. The company explores for commercial deposits of natural resources and develops and operates mines containing reserves of heavy and high-value minerals. In light of adverse conditions and disappointing execution, we decided to sell the shares and exit the position during 2012.

Lazard Emerging Markets Equity Portfolio

For the year ended December 31, 2012, the Lazard Emerging Markets Equity Portfolio’s Institutional Shares posted a total return of 22.36%, while the Open Shares posted a total return of 22.03%, as compared with the 18.22% return for the EM Index.

Stock selection in the telecom services and consumer staples sectors and in Brazil and South Africa helped performance, as shares of Cielo, a Brazilian credit card processing company, improved due to better-than-expected fourth-quarter results, as well as a tender offer to the minority shareholders of Cielo’s competitor, Redecard, by Itau Unibanco Holding. Shoprite Holdings, a South African operator of supermarkets, benefited from strong execution in a buoyant domestic retail market, and from market optimism regarding its growth strategy for the rest of Africa. A higher-than-benchmark exposure to Turkey also added value, as Turkiye Is Bankasi, a Turkish bank, bounced back from prior weakness amid reduced concerns over a potential investigation by the market regulator into claims of influence by the opposition party on company policies and as a result of positive economic data in Turkey.

Samsung Electronics, a South Korean manufacturer of electronics equipment, outperformed based on continued strong sales of its Galaxy smartphones. Taiwan Semiconductor Manufacturing, a producer of integrated circuits, performed well amid increased speculation that it would secure Apple A7 chip orders in 2014.

In contrast, stock selection in the energy sector and in India hurt performance. Shares of YPF, an Argentine energy company, weakened after the government announced plans to expropriate a majority of the company from its primary owner, Repsol. HTC, Taiwan’s leading smartphone manufacturer performed poorly due to disappointing results. Companhia Siderurgica Nacional (CSN), a Brazilian steel manufacturer, declined as a result of slowing demand for its products. Our holdings in HTC and CSN were sold during the fourth quarter. Shares of United Tractors, an Indonesian distributor of heavy construction equipment and provider of mining contract services, retreated as heavy equipment sales declined, and based on expectations that coal companies would reduce capital spending as a result of falling coal prices. NetEase, a Chinese online gaming and internet provider, was pressured by concerns that the Chinese gaming market is slowing.

Lazard Developing Markets Equity Portfolio

For the year ended December 31, 2012, the Lazard Developing Markets Equity Portfolio’s Institutional Shares posted a total return of 17.16%, while the Open Shares posted a total return of 16.79%, as compared with the 18.22% return for the EM Index.

Contributors to performance during the year included ICICI Bank, Grupo Financiero Banorte, China State Construction International Holdings, TMK, and Shriram Transport Finance. Shares of ICICI Bank, an Indian Bank, did well after the bank reported no new additions to its restructuring book during third quarter earnings. Grupo Financiero Banorte, a

Annual Report  11

Mexican bank, performed well after reporting strong operational efficiency improvements throughout the year. China State Construction International Holdings, a Chinese building construction and engineering firm, outperformed as the central government policy continues to support social housing. Shares in TMK, a Russian manufacturer of steel pipes, rose on strength in oil country tubular goods (OCTG) shipments and signs of the construction of South Stream, a natural gas pipeline into Europe. Shriram Transport Finance, an Indian commercial vehicle financing company, outperformed on the prospect of lower interest rates in India and that demand for securitization from private and foreign banks will continue to be strong.

Stock selection in the industrials and financials sectors, as well as in Brazil and India helped performance. In addition, a lower-than-index exposure to the materials sector and to Chile, as well as a higher-than-index exposure to the financials sector added value during the year.

Detractors from performance for the year under review included Alliance Oil, Kia Motors, X5 Retail Group, Synnex Technology International, and Catcher Technology. Shares in Alliance Oil, a Russian integrated energy company, performed poorly due to ongoing problems at one of the company’s production fields in the Timan-Pechora region. Kia Motors, a South Korean automobile company, declined due to production disruptions from a labor strike and headwinds in its business from an appreciating currency. X5 Retail Group, a Russian food retailer, fell due to poor execution in its business and senior management turnover. Synnex Technology International, a Taiwanese technology distribution company, lagged on concerns that Chinese PC and handset demand is slowing. Catcher Technology, a Taiwanese manufacturer of casings for mobile products, underperformed after reporting slower sales growth and on concerns that customer demand was slowing.

Stock selection in the information technology, consumer staples, and telecom services sectors, as well as in Taiwan and South Korea, detracted value. A lower-than-index exposure to the consumer staples and information technology sectors, as well as to South Korea, hurt performance during the year.

Lazard Emerging Markets Equity Blend Portfolio

For the year ended December 31, 2012, the Lazard Emerging Markets Equity Blend Portfolio’s Institutional Shares posted a total return of 18.19%, while Open Shares posted a total return of 17.97%, as compared with the 18.22% return for the EM Index.

Lazard Asset Management LLC, the Fund’s investment manager (the “Investment Manager”), allocates the Portfolio’s assets between the Investment Manager’s emerging markets relative value and relative growth investment strategies. The Investment Manager considers four broad economic contexts pertinent to allocation decisions between the relative value and growth strategies: Differentiation, Expansion, Mania, and Panic.

Changes made to the weighting of these economic contexts in the year ended December 31, 2012 reflected a consideration of many factors, including: 1) the euro zone sovereign debt crisis; 2) global macro data readings, particularly the PMI (which measures economic activity) in China, the United States, and the euro zone; 3) inflation in emerging and developed markets; 4) commodity prices; 5) investment flows into emerging markets; 6) central bank policies, notably those of the Fed and the ECB; 7) U.S., European and Chinese policymakers’ initiatives; 8) employment data; and 9) the U.S. housing sector.

In the first quarter of 2012, we increased our overweight exposure to relative growth from 3% to 8%, as we believed that actions taken by both the Fed and the ECB reduced the likelihood of a recession in the United States and of European bank failures. In the second quarter, first we reduced our overweight to growth back to 3%, as we believed that a reverting to more fundamental factors and an increase in dispersion of returns within asset classes would provide the underlying strategies a greater opportunity to add value from security selection. Then, we moved to a 2% overweight exposure to value, as we believed that growing uncertainty in the macroeconomic landscape in the form of euro zone turmoil and weakening growth in China would favor value versus growth. In the third quarter, we moved to a 6% overweight exposure to growth, based on our belief that the increased probability of the Fed and ECB utilizing additional non-standard monetary policy tools, and an increasingly accommodative stance in China, would favor growth stocks compared to their value peers. Soon after, we moved to a 9% overweight exposure to growth, mainly because both the Fed and ECB met our expectations, and in the case of the Fed, even exceeded them. Finally, in the fourth quarter we increased the overweight exposure to growth to 10%, mainly because of our assessment of a reduced likelihood of

12  Annual Report

negative left-tail scenarios in the euro zone, the United States, and China.

In 2012, stock selection in the industrials and financials sectors, as well as an underweight exposure to the utilities sector added value, as did stock selection in Brazil, Russia, and China and an overweight exposure to Turkey. In contrast, stock selection in the information technology and energy sectors detracted from performance, as did stock selection in Taiwan and South Korea.

Lazard Emerging Markets Multi-Strategy Portfolio

For the year ended December 31, 2012, the Lazard Emerging Markets Multi-Strategy Portfolio’s Institutional Shares posted a total return of 14.02%, while Open Shares posted a total return of 13.28%, as compared with the 18.22% return for the EM Index.

The Investment Manager allocates the Portfolio’s assets among various emerging markets equity, debt, and currency investment strategies managed by the Investment Manager. 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 in the year ended December 31, 2012 reflected a consideration of many factors, including: 1) the euro zone sovereign debt crisis; 2) global macro data readings, particularly the PMI (which measures economic activity) in China, the United States, and the euro zone; 3) inflation in emerging and developed markets; 4) commodity prices; 5) investment flows into emerging markets; 6) central bank policies, notably those of the Fed and the ECB; 7) U.S., European and Chinese policymakers’ initiatives; 8) employment data; and 9) the U.S. housing sector.

In the first quarter of 2012, we increased our overweight exposure to equity to 10% and to relative growth within equity to 8%, while maintaining our 10% overweight exposure to debt within fixed-income, as we believed that actions taken by both the Fed and the ECB reduced the likelihood of a recession in the United States and of European bank failures. In the second quarter, first we reduced our overweight exposure to equity to 5% and to growth within equity to 3%, as we believed that reverting to more fundamental factors and an increase in dispersion of returns within asset classes would provide the underlying strategies a greater opportunity to add value from security selection. Then, we moved to a 2% overweight exposure to fixed-income, a 2% over-weight exposure to value within equity, and a 15% overweight exposure to debt within fixed-income. We also added an allocation to small cap, which provided exposure to a highly inefficient asset class exposed to domestic demand in the emerging markets. In the third quarter, we increased the equity allocation to 53% and increased the allocation to relative growth within equity to 56%. We also reduced the weight of the debt strategy within fixed-income to 60%. These changes were based on an increased probability of the Fed and ECB utilizing additional non-standard monetary policy tools, and an increasingly accommodative stance in China. Soon after, we increased the equity allocation to 58%, increased the allocation to relative growth to 59% of equity and reduced the small cap allocation to 8% of equity, mainly because both the Fed and ECB met or exceeded our expectations. Finally, in the third quarter we increased the equity allocation to 67% and increased the allocation to relative growth within equity to 60%. These changes were driven by our assessment of a reduced likelihood of negative left-tail scenarios in the euro zone, the United States, and China.

In 2012, stock selection in the industrials and financials sectors, as well as an underweight exposure to the utilities sector added value, as did stock selection in Brazil, Russia, and India and an overweight exposure to Turkey, as well as long positions in the Mexican peso and positions in external sovereign and corporate debt. In contrast, stock selection in the information technology and energy sectors detracted from performance, as did stock selection in Taiwan and South Korea and long positions in the Polish zloty.

Lazard Emerging Markets Debt Portfolio

For the year ended December 31, 2012, the Lazard Emerging Markets Debt Portfolio’s Institutional Shares posted a total return of 18.95%, while Open Shares posted a total return of 18.68%, as compared with the 17.21% blended index return of the 50% JPMorgan EMBI Global Diversified Index/50% JPMorgan GBI-EM Global Diversified Index (the Global Diversified Index). The Portfolio ended the year approximately 63% invested in local currency debt versus 37% in external debt.

Annual Report  13

Though external debt markets outperformed local debt markets for the first nine months of the year, a reversal occurred in the fourth quarter as local debt markets comfortably out-performed. This brought the annual return for each asset class to within 75 bps of each other (17.44% for external markets and 16.76% for local debt markets). Though the returns of each asset class were similar, there were periods when one outperformed and vice versa—which provided alpha opportunities from tactical allocation between the two.

The Portfolio’s allocation was tilted toward hard currency through the first half of the year, gradually moving to a nearly even split in the third quarter, and moving to the largest local debt overweight position in the fourth quarter. Much of the positive attribution during the year was associated with this tactical allocation decision. The majority of relative returns were attributed to bottom-up selections in the hard currency and local debt portions of the Portfolio. Key selections in hard currency included overweight sovereign positions in Venezuela, the Ivory Coast, and Angola, as well as off-benchmark positions in Russian and Latin American corporates. Within local debt, top selections were primarily in currencies as overweight positions in Colombia, Russia, and Nigeria and underweight positions in Indonesia and South Africa. Detractors to performance included an underweight position in eastern European sovereign credit (the best performing region for the year) and an underweight duration position in local rates.

Lazard U.S. Realty Income Portfolio

For the year ended December 31, 2012, the Lazard U.S. Realty Income Portfolio’s Institutional Shares posted a total return of 23.32%, while Open Shares posted a total return of 23.00%, as compared with the 15.61% blended index return of the 50% FTSE NAREIT All Equity REITs^® Index/50% Wells Fargo Hybrid and Preferred Securities REIT^® Index (the Hybrid Index).

The Portfolio’s common and preferred stock holdings outperformed their respective indices—with significant outperformance in common stocks. The notable outperformance of the Portfolio’s common stock holdings was driven by the market’s upward valuation of yield-oriented securities and the outperformance of small- and mid-cap property stocks relative to large-cap property stocks. During the year, the Portfolio was, on average, 57% invested in common stocks and 35% invested in preferred stocks, and the remainder in cash and bond positions (the bond position was sold during the year).

Contributors to relative performance included an overweight position in STAG Industrial, an industrial REIT, which benefited from better-than-expected acquisition volume and pricing; an overweight position in Sabra Health Care REIT, which benefited from significant diversification of its tenant base and improved balance sheet strength; and an overweight in CBRE Group, an office broker, which rebounded from a depressed valuation when fears of a dramatic slowdown in transaction volume did not materialize. The position in CBRE Group was sold during the year.

Simon Property Group, the largest equity REIT, which outperformed due to healthy internal net operating income growth, particularly for its outlet centers, hurt relative performance given that we did not hold this security. Other detractors included an underweight position to timber REITs, which outperformed as tangible signs of a U.S. housing recovery emerged; and not owning position to American Tower, an infrastructure REIT, which outperformed on better-than-expected earnings and reaffirmation of its superior long-term growth outlook.

Lazard U.S. Realty Equity Portfolio

For the year ended December 31, 2012, the Lazard U.S. Realty Equity Portfolio’s Institutional Shares posted a total return of 20.83%, while Open Shares posted a total return of 20.58%, as compared with the 19.70% return for the FTSE NAREIT All Equity REITs Index.

In terms of relative performance, the Portfolio benefited from overweight positions to west coast office landlords MPG Office Trust and Douglas Emmett, which benefited from an improving leasing outlook in Southern California. The position in MPG Office Trust was sold during the year. Also helping the Portfolio’s performance was an overweight position to Cedar Realty Trust and DDR, both shopping center REITs, which outperformed due to positive balance sheet maneuvering and compression of shopping center cap rates; and an overweight position to Colony Financial, a finance REIT, which outperformed due to healthy volume of loan originations and opportunistic single-family rental investments.

14  Annual Report

An underweight position to timber REITs (especially Wey-erhaeuser) hurt overall relative performance, which was the best performing subsector during the year due to the overall improvement in housing starts and lumber demand. Other detractors from performance included an underweight position to health care REITs, which outperformed the index notably during the year due to the removal of an overhang related to regulatory uncertainty; and a slight underweight position to net lease REITs, which outperformed the index on the back of an improving leasing environment throughout the year.

Lazard International Realty Equity Portfolio

For the year ended December 31, 2012, the Lazard International Realty Equity Portfolio’s Institutional Shares posted a total return of 45.14%, while Open Shares posted a total return of 44.81%, as compared with the 38.98% return for the FTSE EPRA/NAREIT Global ex-U.S.^® Index.

Contributors to relative performance included an overweight position to Japanese developers, as these stocks benefited from improving office market fundamentals and stimulus measures by the Bank of Japan. Additionally, selective overweight positions to Chinese developers helped performance, benefiting from significantly improving fundamentals particularly the sale volumes. The Portfolio benefited from an overweight position in Brazil to the shopping centers sub-sector, which grew earnings on the back of strong rent growth and cap rate compression.

On the other hand, an underweight position to Singapore developers detracted from our positive attribution.

Lazard U.S. High Yield Portfolio

For the year ended December 31, 2012, the Lazard U.S. High Yield Portfolio’s Institutional Shares posted a total return of 12.02%, while Open Shares posted a total return of 11.89%, as compared with the 15.58% return for the High Yield Index.

Portfolio performance lagged the High Yield Index in 2012 as lower-quality credits continued to outperform as investors sought higher current yield. Our higher-quality focus, coupled with our avoidance of bank and finance securities, led to most of the Portfolio’s underperformance. Over the past year, securities rated CCC returned 20.27% compared to 14.36% for those rated BB. The CCC sector is volatile and more prone to defaults than the upper tiers of high yield where we concentrate. At December 31, 2012, approximately 45% of the invested Portfolio was rated BB by Standard & Poor’s, and approximately 74% was rated B+ or better.

Portfolio performance was helped by overweight positions in the building material and cable sectors. Performance was hurt by overweight positions in the metals/mining sector and our underweighting of the bank, financial services, and telecommunications sectors.

Lazard U.S. Municipal Portfolio

For the year ended December 31, 2012, the Lazard U.S. Municipal Portfolio’s Institutional Shares posted a total return of 2.54%, while Open Shares posted a total return of 2.24%, as compared with the 2.98% return for the Bank of America Merrill Lynch 1–10 Year Municipal Bond^® Index.

The Portfolio’s underperformance was primarily attributed to defensive positioning to mitigate interest rate risk, as well as its higher-quality profile. Year to date, longer-duration allocations and higher-risk sectors posted considerable returns. Longer-maturity allocations benefited greatly from a benign interest rate backdrop and posted sizable returns versus shorter-duration securities. In addition, sectors considered to have more credit risk, such as industrial development, tobacco, and hospitals, significantly outperformed. Finally, across the curve, lower-rated issues posted stronger returns, with BBB-rated issues posting returns of 9.80% versus 4.52% for AAA-rated issues for the year.

Lazard Global Fixed Income Portfolio

For the period from March 30, 2012 (the Portfolio’s inception) through December 31, 2012, the Lazard Global Fixed Income Portfolio’s Institutional Shares posted a total return of 3.30%, while Open Shares posted a total return of 3.08%, as compared with the 3.42% return for the Barclays Capital Global Aggregate Bond^® Index.

The Portfolio’s performance was helped by country allocations, primarily through overweight positions in Poland, Australia, New Zealand, Peru, and China. Security selection in Europe and the United States (exposure to select diversified spread products), along with tactical currency exposure also contributed to returns. On the other hand, avoiding government bonds in peripheral Europe detracted from per-

Annual Report  15

formance as these securities recorded attractive, albeit volatile, returns for the year.

Currency markets were mixed during the year, with local fundamental conditions generally driving movements. The euro strengthened slightly based on developments in Europe that exceeded expectations, and continued reserve diversification from Asia, in particular. Other currencies in Europe also gained ground, such as the Norwegian krone and the Swiss franc. Notable movers during the year were the Polish zloty (up over 11% versus the U.S. dollar) and the Japanese yen, which weakened by 10% during the fourth quarter as a result of proposed Bank of Japan measures to ease, reflate, and/or address the stronger yen. The Portfolio benefited on a relative basis from the weakening yen, but the investment team covered some of the yen underweight as we doubt the sustainability of this move, unless U.S. interest rates were to markedly increase. Furthermore, we are not convinced that Japan’s new targets of 2% inflation and 3% growth will be realized. In contrast, the Korean won was a strong performer during the year, benefiting from better economic data in the region—especially in China, as approximately 40% of Korean exports are bound for China. Other currencies, such as the Brazilian real, South African rand, Indonesian rupiah, and Indian rupee, ended the fourth quarter and the year in negative territory, as a result of slower growth, deteriorating fundamentals, and flows.

Lazard Capital Allocator Opportunistic Strategies Portfolio

For the year ended December 31, 2012, the Lazard Capital Allocator Opportunistic Strategies Portfolio’s Institutional Shares posted a total return of 9.16%, while Open Shares posted a total return of 8.84%. The benchmark returns for the year ended December 31, 2012 were 15.83% for the MSCI World Index and 11.30% for the Global Asset Allocation Blended Index.³

While all sectors contributed positively to returns for the year, three of the Portfolio’s four sectors—thematic, diversifying, and contrarian—lagged the MSCI World Index. Discounted investments outperformed for the year.

The thematic sector, which represented 33% of the Portfolio as of December 31, 2012, underperformed the MSCI World Index, but outperformed the Global Asset Allocation Blended Index. Positive returns generated by equity investments in U.S. information technology, global agribusiness, a basket of U.S. companies with high free cash flow, and global industrials were somewhat offset by underperformance by an investment in energy equities.

The diversifying sector, which represented 46% of the Portfolio at the end of the year, contributed positively to returns but underperformed the benchmarks. The main detractors in the sector were investments in volatility and silver. Gold and short-term corporate bonds added to diversifying returns for the year.

Contrarian investments, which represented 16% of the Portfolio as of the end of the year, also detracted from relative returns, as investments in Italy, European financials, and financial companies engaged in the private equity sector un-derperformed. The positions in European financials and private equity were sold during the year.

Investments in the discounted sector, which represented 5% of the Portfolio as of December 31, 2012, added to performance. Discount tightening in closed-end equity funds drove performance in the sector, particularly in U.S. large-cap, China, and European small-cap funds.

16  Annual Report

Notes to Investment Overviews:
All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolios may have been waived or reimbursed by 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, 2012; these views and portfolio holdings may have changed subsequent to this date. Nothing herein should be construed as a recommendation to buy, sell, or hold a particular security. There is no assurance that the securities discussed herein will remain in each Portfolio at the time you receive this report, or that securities sold will not have been repurchased. The specific securities discussed may, in aggregate, represent only a small percentage of each Portfolio’s holdings. It should not be assumed that securities identified and discussed were, or will be, profitable, or that the investment decisions made in the future will be profitable, or equal the investment performance of the securities discussed herein.
The views and opinions expressed are provided for general information only, and do not constitute specific tax, legal, or investment advice to, or recommendations for, any person. There can be no guarantee as to the accuracy of the outlooks for markets, sectors and securities as discussed herein. You should read the Fund’s prospectus or each Portfolio’s summary prospectus for a more detailed discussion of each Portfolio’s investment objectives, strategies, risks and fees.
1	As of May 31, 2012, the Portfolio changed its name from “Lazard U.S. Equity Value Portfolio” to “Lazard U.S. Equity Concentrated Portfolio,” and adopted its new investment strategy. The Portfolio invests primarily in equity securities, principally common stocks, of U.S. companies of any market capitalization and has a concentrated portfolio of investments, typically investing in 15 to 35 companies with market capitalizations generally greater than $350 million. The Portfolio’s benchmark was also changed from the Russell 1000® Value Index to S&P 500 Index.
2	The Russell 1000 Value/S&P 500 Linked Index is an index created by the Portfolio’s Investment Manager which links the performance of the Russell 1000 Value Index for all periods through May 30, 2012 and the S&P 500 Index for all periods thereafter.
3	The Global Asset Allocation Blended Index is rebalanced quarterly and is a blended index constructed by the Portfolio’s Investment Manager, composed of 60% MSCI World (Net) Index and 40% Barclays Capital US Aggregate Bond® Index.

Annual Report  17

The Lazard Funds, Inc. Performance Overviews

Lazard U.S. Equity Concentrated Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard U.S. Equity Concentrated Portfolio, S&P 500^® Index, Russell 1000 Value/S&P 500 Linked Index and Russell 1000^® Value Index*

Average Annual Total Returns* Periods Ended December 31, 2012
	One Year		Five Years		Since Inception		†
Institutional Shares**	16.83	%	0.53	%	3.83	%
Open Shares**	16.51	%	0.22	%	3.54	%
S&P 500 Index	16.00	%	1.66	%	4.27	%
Russell 1000 Value/S&P 500 Linked Index	13.90	%	–0.03	%	2.94	%
Russell 1000 Value Index	17.51	%	0.59	%	3.38	%

*	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 Portfolio was previously known as Lazard U.S. Equity Value Portfolio. As of May 31, 2012, the Portfolio changed its name to Lazard U.S. Equity Concentrated Portfolio and changed its investment strategy to invest in primarily equity securities, principally common stocks, of U.S. companies of any market capitalization. The Portfolio has a concentrated portfolio of investments, typically investing in 15 to 35 companies with market capitalizations generally greater than $350 million.
	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 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 Russell 1000 Value/S&P 500 Linked Index is an index created by the Portfolio’s Investment Manager, which links the performance of the Russell 1000 Value Index for all periods through May 30, 2012 and the S&P 500 Index for all periods thereafter. 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 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 September 30, 2005.

18  Annual Report

Lazard U.S. Strategic Equity Portfolio

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

Average Annual Total Returns* Periods Ended December 31, 2012
	One Year		Five Years		Since Inception		†
Institutional Shares**	14.56	%	1.73	%	3.80	%
Open Shares**	14.10	%	1.42	%	3.50	%
S&P 500 Index	16.00	%	1.66	%	4.20	%

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

Annual Report  19

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, 2012
	One Year		Five Years		Ten Years
Institutional Shares**	5.76	%	1.03	%	7.50	%
Open Shares**	5.44	%	0.76	%	7.21	%
Russell Midcap Index	17.28	%	3.57	%	10.65	%

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

20  Annual Report

Lazard U.S. Small-Mid Cap Equity Portfolio

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

Average Annual Total Returns* Years Ended December 31, 2012
	One Year		Five Years		Ten Years
Institutional Shares**	15.45	%	5.58	%	9.16	%
Open Shares**	14.97	%	5.22	%	8.81	%
Russell 2500 Index	17.88	%	4.34	%	10.49	%
Russell 2000/2500 Linked Index	17.88	%	4.78	%	10.36	%

*	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 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 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 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 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, 2012

	One Year		Since Inception†
Institutional Shares**	18.05	%	7.40	%
Open Shares**	17.54	%	6.99	%
UBS Global 50/50 Infrastructure & Utilities Index	12.38	%	5.10	%
MSCI World Index	15.83	%	6.93	%

*	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.

22  Annual Report

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, 2012

	One Year		Five Years		Ten Years
Institutional Shares**	22.70	%	–0.83	%	8.14	%
Open Shares**	22.30	%	–1.14	%	7.82	%
EAFE Index	17.32	%	–3.69	%	8.21	%

*	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.

Annual Report  23

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/MSCI ACWI ex-U.S. Linked Index*

Average Annual Total Returns*
Years Ended December 31, 2012
	One Year		Five Years		Ten Years
Institutional Shares**	21.59	%	–1.94	%	7.21	%
Open Shares**	21.23	%	–2.23	%	6.90	%
MSCI ACWI ex-U.S.	16.83	%	–2.89	%	9.74	%
EAFE/MSCI ACWI ex-U.S. Linked Index	16.83	%	–3.99	%	8.04	%

*	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 markets, excluding the United States. The EAFE/MSCI 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.

24  Annual Report

Lazard International Strategic Equity Portfolio

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

Average Annual Total Returns*
Periods Ended December 31, 2012
	Institutional Shares						Open Shares
	One Year		Five Years		Since Inception†		One Year		Five Years		Since Inception†
International Strategic Equity Portfolio**	25.00	%	–0.19	%	6.04	%	24.74	%	–0.49	%	3.79	%
EAFE Index	17.32	%	–3.69	%	3.14	%	17.32	%	–3.69	%	1.34	%

*	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.

Annual Report  25

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, 2012
	One Year		Five Years		Ten Years
Institutional Shares**	22.28	%	–1.96	%	8.95	%
Open Shares**	21.96	%	–2.23	%	8.65	%
EAFE Small Cap Index	20.00	%	–0.87	%	11.93	%

*	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.

26  Annual Report

Lazard Emerging Markets Equity Portfolio

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

Average Annual Total Returns*
Years Ended December 31, 2012
	One Year		Five Years		Ten Years
Institutional Shares**	22.36	%	1.81	%	18.41	%
Open Shares**	22.03	%	1.46	%	18.09	%
EM Index	18.22	%	–0.92	%	16.52	%

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

Annual Report  27

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 the EM Index*

Average Annual Total Returns*
Periods Ended December 31, 2012
	One Year		Since Inception		†
Institutional Shares**	17.16	%	10.33	%
Open Shares**	16.79	%	10.02	%
EM Index	18.22	%	9.69	%

*	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.

28  Annual Report

Lazard Emerging Markets Equity Blend Portfolio

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

Average Annual Total Returns*
Periods Ended December 31, 2012
	One Year		Since Inception		†
Institutional Shares**	18.19	%	6.32	%
Open Shares**	17.97	%	6.02	%
EM Index	18.22	%	7.75	%

*	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, 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. 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 May 28, 2010.

Annual Report  29

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 the EM Index*

Average Annual Total Returns* Periods Ended December 31, 2012
	One Year	Since Inception	†
Institutional Shares**	14.02%	–0.97%
Open Shares**	13.28%	–1.26%
EM Index	18.22%	–3.18%

*	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. 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 March 31, 2011.

30  Annual Report

Lazard Emerging Markets Debt Portfolio

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

Average Annual Total Returns* Periods Ended December 31, 2012
	One Year	Since Inception	†
Institutional Shares**	18.95%	10.86%
Open Shares**	18.68%	10.54%
Global Diversified Index	17.21%	10.81%
JPMorgan EMBI Global Diversified Index	17.44%	13.66%
JPMorgan GBI-EM Global Diversified Index	16.76%	7.82%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, 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. 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 Global Diversified Index is a 50/50 blend of the JPMorgan EMBI Global Diversified Index and the JPMorgan GBI-EM Global Diversified Index. 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.

Annual Report  31

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, the Hybrid Index and S&P 500 Index*

Average Annual Total Returns* Periods Ended December 31, 2012
	Institutional Shares			Open Shares
	One Year	Since Inception	†	One Year	Since Inception	†
U.S. Realty Income Portfolio**	23.32%	26.99%		23.00%	13.95%
Hybrid Index	15.61%	19.98%		15.61%	11.73%
S&P 500 Index	16.00%	22.36%		16.00%	4.74%

*	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. 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 Hybrid Index is a 50/50 blend of the FTSE NAREIT All Equity REITs® Index and the Wells Fargo Hybrid and Preferred Securities REIT® Index. 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 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 S&P 500 Index is a market capitalized-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 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.

32  Annual Report

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 and FTSE NAREIT All Equity REITs Index*

Average Annual Total Returns* Periods Ended December 31, 2012
	Institutional Shares			Open Shares
	One Year	Since Inception	†	One Year	Since Inception	†
U.S. Realty Equity Portfolio**	20.83%	34.88%		20.58%	30.08%
FTSE NAREIT All Equity REITs Index	19.70%	27.38%		19.70%	20.70%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, 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. 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 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 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 September 26, 2011 and for Open Shares was December 31, 2008.

Annual Report  33

Lazard International Realty Equity Portfolio

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

Average Annual Total Returns* Periods Ended December 31, 2012
	Institutional Shares			Open Shares
	One Year	Since Inception	†	One Year	Since Inception	†
International Realty Equity Portfolio**	45.14%	34.34%		44.81%	24.84%
FTSE EPRA/NAREIT Global ex-U.S. Index	38.98%	31.12%		38.98%	18.58%

*	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. 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 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. 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 September 26, 2011 and for Open Shares was December 31, 2008.

34  Annual Report

Lazard U.S. High Yield Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard U.S. High Yield Portfolio and the High Yield Index*

Average Annual Total Returns* Years Ended December 31, 2012
	One Year	Five Years	Ten Years
Institutional Shares**	12.02%	7.18%	8.67%
Open Shares**	11.89%	6.91%	8.39%
High Yield Index	15.58%	10.01%	10.39%

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

Annual Report  35

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*

Average Annual Total Returns* Periods Ended December 31, 2012
	One Year	Since Inception	†
Institutional Shares**	2.54%	3.81%
Open Shares**	2.24%	3.49%
Bank of America Merrill Lynch 1-10 year Municipal Bond Index	2.98%	4.92%

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

36  Annual Report

Lazard Global Fixed Income Portfolio

Comparison of Changes in Value of $10,000 Investment in the Institutional Shares of Lazard Global Fixed Income Portfolio and Barclays Capital Global Aggregate Bond^® Index*

Total Returns* Period Ended December 31, 2012
	Since Inception	†
Institutional Shares**	3.30%
Open Shares**	3.08%
Barclays Capital Global Aggregate Bond Index	3.42%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager, State Street or BFDS; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower. A period of less than one year is not annualized.
	The performance quoted represents past performance. Current performance may be lower or higher than the performance quoted. Past performance is not indicative, or a guarantee, of future results; the investment return and principal value of the Portfolio will fluctuate, so that an investor’s shares in the Portfolio, when redeemed, may be worth more or less than their original cost. No single period of any length may be taken as typical 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 Barclays Capital Global Aggregate Bond Index provides a broad-based measure of global investment-grade fixed-income debt markets, including government-related debt, corporate debt, securitized debt, and global Treasury. It covers the investment-grade, U.S. dollar–denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS, ABS, and CMBS, with maturities of no less than one year. 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 30, 2012.

Annual Report  37

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, 2012
	Institutional Shares			Open Shares
	One Year	Since Inception	†	One Year	Since Inception	†
Capital Allocator Opportunistic Strategies Portfolio**	9.16%	2.40%		8.84%	2.17%
MSCI World Index	15.83%	0.66%		15.83%	0.75%
Global Asset Allocation Blended Index	11.30%	3.46%		11.30%	3.51%

*	All returns reflect reinvestment of all dividends and distributions, if any. Certain expenses of the Portfolio have been waived or reimbursed by the Portfolio’s Investment Manager; 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 Barclays Capital U.S. Aggregate Bond Index covers the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS, ABS and CMBS, with maturities of no less than one year. 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.

38  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, 2012 through December 31, 2012 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 7/1/12		Ending Account Value 12/31/12		Expenses Paid During Period* 7/1/12 - 12/31/12		Annualized Expense Ratio During Period 7/1/12 - 12/31/12
U.S. Equity Concentrated
Institutional Shares
Actual	$	1,000.00	$	1,094.90	$	5.00		0.95	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.38	$	4.82		0.95	%
Open Shares
Actual	$	1,000.00	$	1,092.30	$	6.57		1.25	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.85	$	6.34		1.25	%
U.S. Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	1,084.35	$	3.93		0.75	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.37	$	3.81		0.75	%
Open Shares
Actual	$	1,000.00	$	1,082.37	$	5.50		1.05	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.86	$	5.33		1.05	%
U.S. Mid Cap Equity
Institutional Shares
Actual	$	1,000.00	$	1,025.59	$	5.30		1.04	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.90	$	5.29		1.04	%
Open Shares
Actual	$	1,000.00	$	1,023.79	$	6.63		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.59	$	6.61		1.30	%

Annual Report  39

Portfolio	Beginning Account Value 7/1/12		Ending Account Value 12/31/12		Expenses Paid During Period* 7/1/12 - 12/31/12		Annualized Expense Ratio During Period 7/1/12 - 12/31/12
U.S. Small-Mid Cap Equity
Institutional Shares
Actual	$	1,000.00	$	1,077.86	$	4.57		0.87	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.74	$	4.44		0.87	%
Open Shares
Actual	$	1,000.00	$	1,075.07	$	6.28		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.08	$	6.11		1.20	%
Global Listed Infrastructure
Institutional Shares
Actual	$	1,000.00	$	1,116.31	$	5.98		1.12	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.48	$	5.71		1.12	%
Open Shares
Actual	$	1,000.00	$	1,113.37	$	7.93		1.49	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.64	$	7.57		1.49	%
International Equity
Institutional Shares
Actual	$	1,000.00	$	1,145.41	$	5.47		1.01	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.04	$	5.15		1.01	%
Open Shares
Actual	$	1,000.00	$	1,143.13	$	7.08		1.31	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.53	$	6.66		1.31	%
International Equity Select
Institutional Shares
Actual	$	1,000.00	$	1,145.77	$	6.20		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.36	$	5.84		1.15	%
Open Shares
Actual	$	1,000.00	$	1,145.70	$	7.82		1.45	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.85	$	7.35		1.45	%
International Strategic Equity
Institutional Shares
Actual	$	1,000.00	$	1,157.07	$	4.68		0.86	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.80	$	4.38		0.86	%
Open Shares
Actual	$	1,000.00	$	1,155.22	$	6.19		1.14	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.39	$	5.80		1.14	%
International Small Cap Equity
Institutional Shares
Actual	$	1,000.00	$	1,128.77	$	6.05		1.13	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.46	$	5.74		1.13	%
Open Shares
Actual	$	1,000.00	$	1,129.07	$	7.65		1.43	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.95	$	7.25		1.43	%

40  Annual Report

Portfolio	Beginning Account Value 7/1/12		Ending Account Value 12/31/12		Expenses Paid During Period* 7/1/12 - 12/31/12		Annualized Expense Ratio During Period 7/1/12 - 12/31/12
Emerging Markets Equity
Institutional Shares
Actual	$	1,000.00	$	1,130.11	$	5.86		1.09	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.63	$	5.56		1.09	%
Open Shares
Actual	$	1,000.00	$	1,128.42	$	7.34		1.37	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.24	$	6.96		1.37	%
Developing Markets Equity
Institutional Shares
Actual	$	1,000.00	$	1,103.39	$	6.57		1.24	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.88	$	6.31		1.24	%
Open Shares
Actual	$	1,000.00	$	1,101.91	$	8.27		1.57	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.27	$	7.94		1.57	%
Emerging Markets Equity Blend
Institutional Shares
Actual	$	1,000.00	$	1,100.83	$	7.09		1.34	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.46	$	6.81		1.34	%
Open Shares
Actual	$	1,000.00	$	1,099.73	$	8.64		1.64	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,016.91	$	8.29		1.64	%
Emerging Markets Multi-Strategy
Institutional Shares
Actual	$	1,000.00	$	1,077.34	$	6.79		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.60	$	6.60		1.30	%
Open Shares
Actual	$	1,000.00	$	1,075.30	$	8.35		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
Emerging Markets Debt
Institutional Shares
Actual	$	1,000.00	$	1,106.31	$	5.30		1.00	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.11	$	5.08		1.00	%
Open Shares
Actual	$	1,000.00	$	1,104.41	$	6.88		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.60	$	6.60		1.30	%
U.S. Realty Income
Institutional Shares
Actual	$	1,000.00	$	1,083.32	$	6.01		1.15	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.37	$	5.82		1.15	%
Open Shares
Actual	$	1,000.00	$	1,081.90	$	7.59		1.45	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.85	$	7.36		1.45	%

Annual Report  41

Portfolio	Beginning Account Value 7/1/12		Ending Account Value 12/31/12		Expenses Paid During Period* 7/1/12 - 12/31/12		Annualized Expense Ratio During Period 7/1/12 - 12/31/12
U.S. Realty Equity
Institutional Shares
Actual	$	1,000.00	$	1,051.56	$	6.19		1.20	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.10	$	6.09		1.20	%
Open Shares
Actual	$	1,000.00	$	1,050.23	$	7.73		1.50	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.60	$	7.61		1.50	%
International Realty Equity
Institutional Shares
Actual	$	1,000.00	$	1,215.03	$	7.24		1.30	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.60	$	6.60		1.30	%
Open Shares
Actual	$	1,000.00	$	1,213.70	$	8.90		1.60	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,017.09	$	8.11		1.60	%
U.S. High Yield
Institutional Shares
Actual	$	1,000.00	$	1,060.27	$	2.85		0.55	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,022.37	$	2.80		0.55	%
Open Shares
Actual	$	1,000.00	$	1,058.51	$	4.40		0.85	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.86	$	4.32		0.85	%
U.S. Municipal
Institutional Shares
Actual	$	1,000.00	$	1,010.73	$	2.02		0.40	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,023.13	$	2.03		0.40	%
Open Shares
Actual	$	1,000.00	$	1,009.14	$	3.53		0.70	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.62	$	3.56		0.70	%
Lazard Global Fixed Income
Institutional Shares
Actual	$	1,000.00	$	1,032.20	$	4.08		0.80	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,021.13	$	4.05		0.80	%
Open Shares
Actual	$	1,000.00	$	1,030.69	$	5.60		1.10	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,019.62	$	5.57		1.10	%
Capital Allocator Opportunistic Strategies
Institutional Shares
Actual	$	1,000.00	$	1,051.86	$	5.26		1.02	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,020.01	$	5.18		1.02	%
Open Shares
Actual	$	1,000.00	$	1,050.96	$	6.81		1.32	%
Hypothetical (5% Return Before Expenses)	$	1,000.00	$	1,018.50	$	6.70		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 184/366 (to reflect one-half year period).

42  Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Sector December 31, 2012

Sector*	Lazard U.S. Equity Concentrated 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		20.6	%		16.4	%		17.9	%		13.4	%		1.0	%
Consumer Staples		14.6			11.6			5.9			2.1			—
Energy		3.1			8.7			7.4			6.2			—
Financials		2.4			11.5			14.9			21.7			2.0
Health Care		25.5			16.8			13.8			7.5			—
Industrials		3.5			10.9			13.9			16.3			56.6
Information Technology		12.4			19.7			21.8			18.0			—
Materials		7.0			2.8			3.1			9.0			—
Telecommunication Services		—			—			—			—			—
Utilities		—			—			—			2.5			38.9
Short-Term Investments		10.9			1.6			1.3			3.3			1.5
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		13.6	%		11.1	%		24.8	%		20.0	%		6.8	%
Consumer Staples		9.5			12.0			10.8			5.7			12.7
Energy		8.4			8.5			8.6			6.6			7.6
Financials		18.5			18.2			19.2			15.2			26.9
Health Care		14.0			13.1			15.8			14.3			—
Industrials		10.7			11.2			9.8			21.4			8.5
Information Technology		7.1			10.0			0.8			9.5			14.2
Materials		9.5			7.6			8.5			5.8			9.0
Telecommunication Services		4.0			6.6			—			—			13.3
Utilities		2.4			0.7			—			0.9			—
Short-Term Investments		2.3			1.0			1.7			0.6			1.0
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. Reatly Income Portfolio			Lazard U.S. Reatly Equity Portfolio
Consumer Discretionary		14.8	%		12.5	%		9.1	%		—	%		4.3	%
Consumer Staples		2.5			7.0			4.7			—			—
Energy		15.0			11.7			9.6			—			—
Financials		31.2			27.2			20.2			93.2			92.7
Health Care		2.2			2.2			1.5			—			—
Industrials		14.4			12.0			8.8			—			—
Information Technology		11.6			13.2			8.8			—			—
Materials		4.4			5.3			4.7			—			—
Telecommunication Services		0.9			5.5			3.9			—			—
Utilities		0.8			—			1.0			—			—
Sovereign Debt		—			—			8.5			—			—
U.S. Treasury Securities		—			—			10.1			—			—
Short-Term Investments		2.2			3.4			9.1			6.8			3.0
Total Investments		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report  43

Sector*	Lazard International Realty Equity Portfolio			Lazard Capital Allocator Opportunistic Strategies Portfolio
Consumer Discretionary		4.4	%		3.8	%
Consumer Staples		—			3.8
Energy		—			7.3
Financials		95.1			12.8
Health Care		—			1.9
Industrials		—			9.3
Information Technology		—			8.1
Materials		—			3.6
Telecommunication Services		—			1.6
Utilities		—			1.4
Other		—			5.4
Fixed Income		—			24.4
Short-Term Investments		0.5			16.6
Total Investments		100.0	%		100.0	%

* Represents percentage of total investments.

44  Annual Report

The Lazard Funds, Inc. Portfolio Holdings Presented by Region and Credit Rating December 31, 2012

Region*	Lazard Emerging Markets Debt Portfolio
Africa		17.1	%
Asia		33.2
Europe		25.8
North America		8.3
South America		15.3
Short-Term Investment		0.3
Total Investments		100.0	%

S&P Credit Rating*	Lazard U.S. High Yield Portfolio			Lazard U.S. Municipal Portfolio			Lazard Global Fixed Income Portfolio
AAA		—	%		16.9	%		25.5	%
AA+		—			8.1			4.0
AA		—			12.0			4.1
AA–		—			7.8			14.4
A+		—			11.4			4.2
A		—			17.9			11.4
A–		0.7			16.4			4.6
BBB+		—			4.5			2.7
BBB		0.5			0.4			12.5
BBB–		5.0			—			2.9
BB+		4.8			—			1.4
BB		12.2			—			—
BB–		19.2			—			1.4
B+		28.3			—			—
B		12.7			—			—
B–		10.6			—			—
CCC+		1.1			—			—
NR		—			0.6			6.5
NA		—			1.6			3.8
Short-Term Investments		4.9			2.4			0.6
Total Investments		100.0	%		100.0	%		100.0	%

* Represents percentage of total investments.

Annual Report  45

The Lazard Funds, Inc. Portfolios of Investments December 31, 2012

Description	Shares		Value
Lazard U.S. Equity Concentrated Portfolio
Common Stocks | 88.5%
Alcohol & Tobacco | 2.7%
Molson Coors Brewing Co., Class B		76,170	$	3,259,314
Automotive | 2.1%
General Motors Co. (a)		44,700		1,288,701
Lear Corp.		26,400		1,236,576
				2,525,277
Cable Television | 3.8%
Comcast Corp., Class A		130,710		4,699,024
Commercial Services | 3.5%
Corrections Corp. of America		121,340		4,303,930
Computer Software | 3.6%
Microsoft Corp.		164,520		4,397,619
Consumer Products | 2.4%
Newell Rubbermaid, Inc.		129,110		2,875,280
Energy Integrated | 3.1%
ConocoPhillips		64,565		3,744,124
Financial Services | 2.4%
Janus Capital Group, Inc.		344,950		2,938,974
Food & Beverages | 3.5%
Sysco Corp.		133,880		4,238,641
Leisure & Entertainment | 6.0%
Viacom, Inc., Class B		139,605		7,362,768
Medical Products | 12.4%
Baxter International, Inc.		51,360		3,423,658
CareFusion Corp. (a)		232,020		6,631,131
McKesson Corp.		52,260		5,067,130
				15,121,919

Description	Shares		Value
Metals & Mining | 6.9%
Silver Wheaton Corp.	103,245	$	3,725,080
US Silica Holdings, Inc.	282,580		4,727,563
			8,452,643
Pharmaceutical & Biotechnology | 12.9%
Gilead Sciences, Inc. (a)	53,000		3,892,850
Pfizer, Inc.	472,689		11,855,040
			15,747,890
Retail | 14.4%
American Eagle Outfitters, Inc.	187,095		3,837,318
Big Lots, Inc. (a)	126,615		3,603,463
CVS Caremark Corp.	76,330		3,690,555
Wal-Mart Stores, Inc.	95,085		6,487,650
			17,618,986
Technology Hardware | 8.8%
Cisco Systems, Inc.	546,555		10,739,806
Total Common Stocks
(Identified cost $101,124,851)			108,026,195
Short-Term Investment | 10.8%
State Street Institutional Treasury Money Market Fund (Identified cost $13,156,276)	13,156,276		13,156,276
Total Investments | 99.3%
(Identified cost $114,281,127) (b)		$	121,182,471
Cash and Other Assets in Excess of Liabilities | 0.7%			887,512
Net Assets | 100.0%		$	122,069,983

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

46  Annual Report

Description	Shares		Value
Lazard U.S. Strategic Equity Portfolio
Common Stocks | 98.4%
Aerospace & Defense | 3.3%
Raytheon Co.		18,900	$	1,087,884
Rockwell Collins, Inc.		7,700		447,909
The Boeing Co.		15,800		1,190,688
				2,726,481
Agriculture | 1.2%
The Mosaic Co.		17,100		968,373
Alcohol & Tobacco | 2.0%
Molson Coors Brewing Co., Class B		38,350		1,640,997
Automotive | 1.6%
General Motors Co. (a)		15,600		449,748
Lear Corp.		18,550		868,882
				1,318,630
Banking | 1.9%
Bank of America Corp.		140,100		1,625,160
Cable Television | 4.1%
Comcast Corp., Class A		96,050		3,452,997
Chemicals | 1.1%
E.l. du Pont de Nemours & Co.		20,650		928,631
Commercial Services | 2.9%
ADT Corp.		19,350		899,581
Corrections Corp. of America		23,100		819,357
Republic Services, Inc.		23,400		686,322
				2,405,260
Computer Software | 3.8%
BMC Software, Inc. (a)		24,050		953,823
Microsoft Corp.		29,600		791,208
Oracle Corp.		42,200		1,406,104
				3,151,135
Consumer Products | 1.5%
Hasbro, Inc.		17,800		639,020
Newell Rubbermaid, Inc.		26,300		585,701
				1,224,721

Description	Shares		Value
Energy Exploration & Production | 1.8%
Devon Energy Corp.		28,900	$	1,503,956
Energy Integrated | 5.8%
Chevron Corp.		18,700		2,022,218
ConocoPhillips		27,400		1,588,926
Consol Energy, Inc.		39,150		1,256,715
				4,867,859
Energy Services | 1.1%
Halliburton Co.		27,400		950,506
Financial Services | 7.9%
American Express Co.		18,700		1,074,876
Ameriprise Financial, Inc.		23,650		1,481,200
Capital One Financial Corp.		15,300		886,329
Citigroup, Inc.		64,600		2,555,576
Janus Capital Group, Inc.		77,585		661,024
				6,659,005
Food & Beverages | 2.9%
PepsiCo, Inc.		11,700		800,631
Sysco Corp.		52,000		1,646,320
				2,446,951
Health Services | 1.1%
UnitedHealth Group, Inc.		17,300		938,352
Insurance | 1.6%
The Hartford Financial Services Group, Inc.		18,500		415,140
The Travelers Cos., Inc.		12,400		890,568
				1,305,708
Leisure & Entertainment | 3.3%
Viacom, Inc., Class B		52,450		2,766,213
Manufacturing | 4.7%
Caterpillar, Inc.		7,700		689,766
Honeywell International, Inc.		18,593		1,180,098
Parker Hannifin Corp.		14,950		1,271,647
Tyco International, Ltd.		28,700		839,475
				3,980,986
Medical Products | 7.0%
Baxter International, Inc.		23,700		1,579,842
CareFusion Corp. (a)		68,800		1,966,304
McKesson Corp.		23,600		2,288,256
				5,834,402

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

Annual Report  47

Description	Shares	Value
Lazard U.S. Strategic Equity Portfolio (concluded)
Metals & Mining | 0.6%
Walter Energy, Inc.	13,100	$	470,028
Pharmaceutical & Biotechnology | 8.7%
Gilead Sciences, Inc. (a)	19,050		1,399,222
Johnson & Johnson	24,010		1,683,101
Merck & Co., Inc.	18,050		738,967
Pfizer, Inc.	136,950		3,434,706
			7,255,996
Retail | 12.6%
American Eagle Outfitters, Inc.	66,645		1,366,889
AutoZone, Inc. (a)	2,436		863,391
Big Lots, Inc. (a)	23,880		679,625
CVS Caremark Corp.	49,100		2,373,985
Lowe’s Cos., Inc.	31,550		1,120,656
Macy’s, Inc.	24,600		959,892
Wal-Mart Stores, Inc.	47,355		3,231,032
			10,595,470
Semiconductors & Components | 2.1%
Intel Corp.	33,650		694,199
Texas Instruments, Inc.	35,300		1,092,182
			1,786,381
Technology | 2.1%
Google, Inc., Class A (a)	2,432		1,725,188

Description	Shares	Value
Technology Hardware | 11.7%
Apple, Inc.	3,441	$	1,834,156
Cisco Systems, Inc.	191,405		3,761,108
EMC Corp. (a)	51,600		1,305,480
International Business Machines Corp.	7,690		1,473,019
Lexmark International, Inc., Class A	21,050		488,150
Qualcomm, Inc.	15,300		948,906
			9,810,819
Total Common Stocks (Identified cost $72,213,777)			82,340,205
Preferred Stock | 0.0%
Automotive | 0.0%
Better Place, Inc., Series B (Identified cost $453,501) (a), (c)	181,401		23,582
Short-Term Investment | 1.6%
State Street Institutional Treasury Money Market Fund (Identified cost $1,324,107)	1,324,107		1,324,107
Total Investments | 100.0% (Identified cost $73,991,385) (b)		$	83,687,894
Cash and Other Assets in Excess of Liabilities | 0.0%			40,145
Net Assets | 100.0%		$	83,728,039

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

48  Annual Report

Description	Shares	Value
Lazard U.S. Mid Cap Equity Portfolio
Common Stocks | 98.7%
Aerospace & Defense | 1.0%
Rockwell Collins, Inc.	12,400	$	721,308
Alcohol & Tobacco | 1.5%
Molson Coors Brewing Co., Class B	24,700		1,056,913
Automotive | 0.8%
Lear Corp.	13,000		608,920
Banking | 4.6%
East West Bancorp, Inc.	51,100		1,098,139
Regions Financial Corp.	125,900		896,408
Signature Bank (a)	18,400		1,312,656
			3,307,203
Chemicals | 2.4%
Eastman Chemical Co.	25,700		1,748,885
Commercial Services | 5.3%
Corrections Corp. of America	10,800		383,076
Realogy Holdings Corp.	13,700		574,852
Republic Services, Inc.	34,900		1,023,617
The Interpublic Group of Cos., Inc.	105,200		1,159,304
Vantiv, Inc., Class A	32,100		655,482
			3,796,331
Computer Software | 8.8%
Autodesk, Inc. (a)	22,100		781,235
BMC Software, Inc. (a)	43,300		1,717,278
Check Point Software Technologies, Ltd. (a)	23,800		1,133,832
Informatica Corp. (a)	17,300		524,536
Intuit, Inc.	30,300		1,802,850
Red Hat, Inc. (a)	7,200		381,312
			6,341,043
Consumer Products | 3.3%
Hasbro, Inc.	38,900		1,396,510
Newell Rubbermaid, Inc.	45,100		1,004,377
			2,400,887
Diversified | 1.2%
SPX Corp.	12,100		848,815

Description	Shares	Value
Energy Exploration & Production | 3.2%
EQT Corp.	12,700	$	749,046
Noble Energy, Inc.	10,700		1,088,618
Rosetta Resources, Inc. (a)	10,000		453,600
			2,291,264
Energy Integrated | 2.1%
PBF Energy, Inc.	22,500		653,625
Peabody Energy Corp.	33,000		878,130
			1,531,755
Energy Services | 2.1%
Cameron International Corp. (a)	14,700		829,962
Rowan Cos. PLC, Class A (a)	22,200		694,194
			1,524,156
Financial Services | 3.3%
Ameriprise Financial, Inc.	26,900		1,684,747
Invesco, Ltd.	26,800		699,212
			2,383,959
Food & Beverages | 4.4%
H.J. Heinz Co.	15,800		911,344
Sysco Corp.	72,400		2,292,184
			3,203,528
Health Services | 5.4%
Aetna, Inc.	24,200		1,120,460
AmerisourceBergen Corp.	49,200		2,124,456
Humana, Inc.	9,900		679,437
			3,924,353
Insurance | 2.6%
PartnerRe, Ltd.	7,100		571,479
The Hartford Financial Services Group, Inc.	25,900		581,196
Willis Group Holdings PLC	21,900		734,307
			1,886,982
Leisure & Entertainment | 1.7%
Marriott International, Inc., Class A	19,700		734,219
Weight Watchers International, Inc.	9,900		518,364
			1,252,583
Manufacturing | 9.2%
B/E Aerospace, Inc. (a)	15,000		741,000
Dover Corp.	28,900		1,899,019
Joy Global, Inc.	11,300		720,714
Parker Hannifin Corp.	26,800		2,279,608
WESCO International, Inc. (a)	15,100		1,018,193
			6,658,534

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

Annual Report  49

Description	Shares	Value
Lazard U.S. Mid Cap Equity Portfolio (concluded)
Medical Products | 7.1%
CareFusion Corp. (a)	53,200	$	1,520,456
Henry Schein, Inc. (a)	12,300		989,658
Zimmer Holdings, Inc.	38,800		2,586,408
			5,096,522
Metals & Mining | 0.7%
Walter Energy, Inc.	14,200		509,496
Pharmaceutical & Biotechnology | 1.3%
Vertex Pharmaceuticals, Inc. (a)	22,800		956,232
Real Estate | 3.7%
Kilroy Realty Corp. REIT	23,700		1,122,669
The Macerich Co. REIT	26,200		1,527,460
			2,650,129
Retail | 9.6%
American Eagle Outfitters, Inc.	33,800		693,238
AutoZone, Inc. (a)	5,365		1,901,517
Big Lots, Inc. (a)	15,600		443,976
Macy’s, Inc.	69,400		2,707,988
Ross Stores, Inc.	22,000		1,191,300
			6,938,019
Semiconductors & Components | 3.9%
Avago Technologies, Ltd.	32,800		1,038,448
TE Connectivity, Ltd.	15,700		582,784
Xilinx, Inc.	34,100		1,224,190
			2,845,422
Technology | 4.6%
Amdocs, Ltd.	19,000		645,810
Fidelity National Information Services, Inc.	53,600		1,865,816
Gartner, Inc. (a)	17,800		819,156
			3,330,782

Description	Shares	Value
Technology Hardware | 3.6%
Dell, Inc.	56,200	$	569,306
F5 Networks, Inc. (a)	11,400		1,107,510
NetApp, Inc. (a)	28,000		939,400
			2,616,216
Transportation | 1.3%
Landstar System, Inc.	18,200		954,772
Total Common Stocks (Identified cost $69,041,429)			71,385,009
Preferred Stock | 0.1%
Automotive | 0.1%
Better Place, Inc., Series B (Identified cost $1,307,499) (a), (c)	523,000		67,990
Short-Term Investment | 1.3%
State Street Institutional Treasury Money Market Fund (Identified cost $923,402)	923,402		923,402
Total Investments | 100.1% (Identified cost $71,272,330) (b)		$	72,376,401
Liabilities in Excess of Cash and Other Assets | (0.1)%			(81,575	)
Net Assets | 100.0%		$	72,294,826

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

50  Annual Report

Description	Shares			Value
Lazard U.S. Small-Mid Cap Equity Portfolio
Common Stocks | 98.1%
Automotive | 1.8%
Modine Manufacturing Co. (a)		341,100	$	2,773,143
Tenneco, Inc. (a)		75,850		2,663,093
				5,436,236
Banking | 7.8%
Associated Banc-Corp		297,900		3,908,448
East West Bancorp, Inc.		212,000		4,555,880
PacWest Bancorp		208,801		5,174,089
Signature Bank (a)		68,800		4,908,192
Wintrust Financial Corp.		145,893		5,354,273
				23,900,882
Chemicals | 2.7%
Cytec Industries, Inc.		34,300		2,360,869
Innophos Holdings, Inc.		62,000		2,883,000
Rockwood Holdings, Inc.		61,000		3,017,060
				8,260,929
Commercial Services | 1.7%
ARC Document Solutions, Inc. (a)		278,173		712,123
KAR Auction Services, Inc.		171,200		3,465,088
Realogy Holdings Corp.		24,600		1,032,216
				5,209,427
Computer Software | 6.2%
Autodesk, Inc. (a)		136,115		4,811,665
BMC Software, Inc. (a)		83,100		3,295,746
Informatica Corp. (a)		100,200		3,038,064
j2 Global, Inc.		117,560		3,594,985
Red Hat, Inc. (a)		82,850		4,387,736
				19,128,196
Construction & Engineering | 2.5%
MasTec, Inc. (a)		172,500		4,300,425
Quanta Services, Inc. (a)		126,700		3,457,643
				7,758,068
Consumer Products | 4.6%
Central Garden & Pet Co., Class A (a)		391,800		4,094,310
Hasbro, Inc.		115,300		4,139,270
Matthews International Corp., Class A		118,514		3,804,299
The Middleby Corp. (a)		17,100		2,192,391
				14,230,270

Description	Shares		Value
Diversified | 0.7%
SPX Corp.		30,400	$	2,132,560
Energy Exploration & Production | 2.4%
Bill Barrett Corp. (a)		161,600		2,874,864
Diamondback Energy, Inc.		102,190		1,953,873
Rosetta Resources, Inc. (a)		52,300		2,372,328
				7,201,065
Energy Integrated | 2.0%
PBF Energy, Inc.		114,600		3,329,130
Targa Resources Corp.		53,700		2,837,508
				6,166,638
Energy Services | 2.0%
Key Energy Services, Inc. (a)		332,900		2,313,655
Rowan Cos. PLC, Class A (a)		117,900		3,686,733
				6,000,388
Financial Services | 3.1%
Raymond James Financial, Inc.		127,800		4,924,134
Waddell & Reed Financial, Inc., Class A		129,000		4,491,780
				9,415,914
Food & Beverages | 0.8%
TreeHouse Foods, Inc. (a)		44,300		2,309,359
Forest & Paper Products | 2.9%
Rock-Tenn Co., Class A		44,300		3,097,013
Schweitzer-Mauduit International, Inc.		148,100		5,780,343
				8,877,356
Gas Utilities | 1.6%
New Jersey Resources Corp.		124,750		4,942,595
Health Services | 1.8%
VCA Antech, Inc. (a)		268,600		5,654,030
Insurance | 3.5%
Arch Capital Group, Ltd. (a)		126,300		5,559,726
Validus Holdings, Ltd.		147,800		5,110,924
				10,670,650
Leisure & Entertainment | 3.4%
Bally Technologies, Inc. (a)		66,340		2,966,061
Churchill Downs, Inc.		28,600		1,900,470
Texas Roadhouse, Inc.		196,100		3,294,480
Weight Watchers International, Inc.		40,900		2,141,524
				10,302,535

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

Annual Report  51

Description	Shares		Value
Lazard U.S. Small-Mid Cap Equity Portfolio (concluded)
Manufacturing | 10.9%
B/E Aerospace, Inc. (a)		82,200	$	4,060,680
Carpenter Technology Corp.		80,100		4,135,563
FLIR Systems, Inc.		236,100		5,267,391
Harsco Corp.		141,700		3,329,950
Kennametal, Inc.		75,000		3,000,000
Littelfuse, Inc.		71,300		4,399,923
Regal-Beloit Corp.		48,035		3,385,026
TriMas Corp. (a)		205,450		5,744,382
				33,322,915
Medical Products | 4.8%
CareFusion Corp. (a)		199,000		5,687,420
Haemonetics Corp. (a)		136,100		5,558,324
Henry Schein, Inc. (a)		43,700		3,516,102
				14,761,846
Metals & Mining | 2.2%
US Silica Holdings, Inc.		253,230		4,236,538
Walter Energy, Inc.		65,600		2,353,728
				6,590,266
Pharmaceutical & Biotechnology | 1.0%
Vertex Pharmaceuticals, Inc. (a)		70,070		2,938,736
Real Estate | 7.3%
Extra Space Storage, Inc. REIT		139,200		5,065,488
Kilroy Realty Corp. REIT		97,550		4,620,944
Mid-America Apartment Communities, Inc. REIT		66,800		4,325,300
PS Business Parks, Inc. REIT		55,400		3,599,892
The Macerich Co. REIT		81,977		4,779,259
				22,390,883
Retail | 5.8%
Aeropostale, Inc. (a)		210,900		2,743,809
American Eagle Outfitters, Inc.		202,375		4,150,711
ANN, Inc. (a)		67,200		2,274,048
Iconix Brand Group, Inc. (a)		175,600		3,919,392
Vera Bradley, Inc. (a)		187,400		4,703,740
				17,791,700
Semiconductors & Components | 6.2%
II-VI, Inc. (a)		234,000		4,275,180
Microsemi Corp. (a)		222,500		4,681,400
ON Semiconductor Corp. (a)		647,800		4,566,990
Xilinx, Inc.		154,300		5,539,370
				19,062,940

Description	Shares		Value
Technology | 4.0%
FleetMatics Group PLC		94,400	$	2,375,104
NetScout Systems, Inc. (a)		223,900		5,819,161
SS&C Technologies Holdings, Inc. (a)		169,539		3,919,742
				12,114,007
Transportation | 3.5%
Alaska Air Group, Inc. (a)		76,900		3,313,621
Echo Global Logistics, Inc. (a)		162,343		2,917,304
Hub Group, Inc., Class A (a)		129,400		4,347,840
				10,578,765
Water | 0.9%
California Water Service Group		150,900		2,769,015
Total Common Stocks (Identified cost $283,831,344)				299,918,171
Preferred Stock | 0.0%
Automotive | 0.0%
Better Place, Inc., Series B (Identified cost $452,901) (a), (c)		181,161		23,551

Description	Principal Amount (000)		Value
Repurchase Agreement | 3.3%
State Street Bank and Trust Co., 0.01%, 01/02/13 (Dated 12/31/12, collateralized by $10,020,000 United States Treasury Note, 1.500%, 07/31/16, with a value of $10,450,409) Proceeds of $10,244,006 (Identified cost $10,244,000)	$	10,244	$	10,244,000
Total Investments | 101.4% (Identified cost $294,528,245) (b)			$	310,185,722
Liabilities in Excess of Cash and Other Assets | (1.4)%				(4,346,777	)
Net Assets | 100.0%			$	305,838,945

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

52  Annual Report

Description	Shares		Value
Lazard Global Listed Infrastructure Portfolio
Common Stocks | 99.4%
Australia | 14.9%
DUET Group		2,575,304	$	5,596,233
Macquarie Atlas Roads Group (a)		2,376,815		4,138,147
SP AusNet		947,330		1,088,031
Spark Infrastructure Group		2,335,759		4,088,271
Transurban Group		876,876		5,569,148
				20,479,830
Austria | 2.8%
Flughafen Wien AG		66,570		3,800,703
France | 5.1%
Aeroports de Paris		71,595		5,527,873
Vinci SA		30,700		1,461,087
				6,988,960
Germany | 6.2%
Fraport AG		146,869		8,552,630
Italy | 27.0%
Atlantia SpA		622,064		11,282,382
Autostrada Torino-Milano SpA		481,241		4,969,642
Hera SpA		2,089,778		3,385,651
Snam SpA		946,747		4,402,430
Societa Iniziative Autostradali e Servizi SpA		825,606		7,718,374
Terna SpA		1,379,175		5,523,312
				37,281,791
Japan | 10.5%
Osaka Gas Co., Ltd.		1,490,300		5,413,128
Toho Gas Co., Ltd.		686,350		3,684,294
Tokyo Gas Co., Ltd.		1,166,700		5,334,101
				14,431,523
Luxembourg | 1.0%
SES SA		49,243		1,424,543
Mexico | 1.1%
Grupo Aeroportuario del Centro Norte SAB de CV		565,447		1,535,411
Description	Shares		Value
South Korea | 2.1%
Macquarie Korea Infrastructure Fund		441,937	$	2,825,876
Spain | 11.6%
Abertis Infraestructuras SA		404,938		6,748,540
Enagas SA		203,975		4,364,874
Red Electrica Corporacion SA		98,817		4,882,308
				15,995,722
Switzerland | 3.1%
Flughafen Zuerich AG		9,355		4,333,593
United Kingdom | 1.0%
Pennon Group PLC		140,800		1,433,956
United States | 13.0%
American States Water Co.		6,000		287,880
California Water Service Group		148,034		2,716,424
CSX Corp.		311,300		6,141,949
Norfolk Southern Corp.		78,437		4,850,544
PG&E Corp.		32,079		1,288,934
SJW Corp.		25,600		680,960
Union Pacific Corp.		15,306		1,924,271
				17,890,962
Total Common Stocks (Identified cost $130,069,110)				136,975,500
Short-Term Investment | 1.4%
State Street Institutional Treasury Money Market Fund (Identified cost $1,995,764)		1,995,764		1,995,764
Total Investments | 100.8% (Identified cost $132,064,874) (b)			$	138,971,264
Liabilities in Excess of Cash and Other Assets | (0.8)%				(1,144,050	)
Net Assets | 100.0%			$	137,827,214

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

Annual Report   53

Lazard Global Listed Infrastructure Portfolio (concluded)

Forward Currency Contracts open at December 31, 2012:

Currency	Counterparty		Expiration Date		Foreign Currency Amount		U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts
CHF		CSF		03/27/13		651,000	$	687,216	$	712,851	$	25,635	$	—
KRW		MEL		03/25/13		683,062,325		631,004		635,014		4,010		—
MXN		SSB		03/27/13		1,976,174		150,676		151,704		1,028		—
MXN		SSB		03/27/13		2,993,993		229,451		229,839		388		—
MXN		SSB		03/27/13		3,199,365		241,721		245,604		3,883		—
MXN		SSB		03/27/13		3,371,578		250,627		258,825		8,198		—
Total Forward Currency Purchase Contracts							$	2,190,695	$	2,233,837	$	43,142	$	—
Forward Currency Sale Contracts
AUD		HSB		03/27/13		19,573,442	$	20,173,172	$	20,202,515	$	—	$	29,343
CHF		CSF		03/27/13		4,393,034		4,654,970		4,810,414		—		155,444
EUR		BRC		03/27/13		28,836,402		36,710,383		38,091,150		—		1,380,767
EUR		CAN		03/27/13		23,237,131		29,575,059		30,694,851		—		1,119,792
EUR		RBC		03/27/13		3,884,547		5,091,903		5,131,253		—		39,350
EUR		SSB		01/02/13		314,195		414,470		414,722		—		252
GBP		RBC		03/27/13		169,960		271,339		276,017		—		4,678
GBP		RBC		03/27/13		684,687		1,101,205		1,111,941		—		10,736
JPY		HSB		03/27/13		867,116,247		10,924,712		10,015,242		909,470		—
JPY		MEL		03/27/13		382,538,342		4,820,322		4,418,340		401,982		—
KRW		MEL		03/25/13		3,639,619,677		3,338,029		3,383,600		—		45,571
MXN		SSB		03/27/13		1,791,241		138,679		137,508		1,171		—
MXN		SSB		03/27/13		30,128,898		2,255,900		2,312,894		—		56,994
Total Forward Currency Sale Contracts							$	119,470,143	$	121,000,447		1,312,623		2,842,927
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts											$	1,355,765	$	2,842,927

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

54   Annual Report

Description	Shares		Value
Lazard International Equity Portfolio
Common Stocks | 97.7%
Australia | 2.5%
James Hardie Industries PLC		219,909	$	2,127,447
Orica, Ltd.		46,581		1,224,919
				3,352,366
Belgium | 3.4%
Anheuser-Busch InBev NV		53,105		4,640,772
Bermuda | 0.6%
Signet Jewelers, Ltd.		16,375		863,547
Brazil | 1.6%
Anhanguera Educacional Participacoes SA		59,200		1,011,370
Cielo SA		40,226		1,126,325
				2,137,695
Canada | 2.8%
MacDonald Dettwiler & Associates, Ltd.		3,700		208,155
Potash Corp. of Saskatchewan, Inc.		38,330		1,559,866
Rogers Communications, Inc., Class B		43,900		1,993,087
				3,761,108
Finland | 1.3%
Sampo Oyj, A Shares		53,478		1,729,286
France | 9.5%
BNP Paribas SA		44,402		2,502,815
Cie Generale de Geophysique-Veritas (a)		46,374		1,397,648
Rexel SA		73,331		1,498,422
Sanofi SA		44,014		4,174,077
Technip SA		14,921		1,717,843
Valeo SA		30,225		1,532,601
				12,823,406
Germany | 9.8%
Bayer AG		32,231		3,060,737
Bayerische Motoren Werke AG		20,780		2,004,065
Merck KGaA		21,671		2,859,227
RWE AG		40,981		1,691,807
SAP AG		30,576		2,449,337
ThyssenKrupp AG		49,854		1,171,383
				13,236,556
Indonesia | 0.8%
PT Bank Mandiri (Persero) Tbk ADR		129,100		1,082,374
Description	Shares		Value
Ireland | 0.8%
Ryanair Holdings PLC Sponsored ADR		30,500	$	1,045,540
Italy | 2.9%
Atlantia SpA		94,053		1,705,840
Eni SpA		90,381		2,229,658
				3,935,498
Japan | 15.2%
Asics Corp.		122,790		1,870,687
Canon, Inc.		39,600		1,553,198
Daikin Industries, Ltd.		46,800		1,608,069
Daito Trust Construction Co., Ltd.		22,700		2,136,120
Don Quijote Co., Ltd.		53,700		1,967,276
Fanuc Corp.		6,100		1,134,379
Komatsu, Ltd.		67,200		1,719,612
LIXIL Group Corp.		93,300		2,077,691
Seven & I Holdings Co., Ltd.		51,700		1,455,094
SoftBank Corp.		29,700		1,086,775
Sumitomo Mitsui Financial Group, Inc.		75,900		2,757,373
Yahoo Japan Corp.		3,546		1,147,730
				20,514,004
Mexico | 0.9%
Genomma Lab Internacional SAB de CV, B Shares (a)		578,300		1,188,248
Netherlands | 2.0%
ING Groep NV (a)		276,934		2,648,235
New Zealand | 0.7%
Telecom Corp. of New Zealand, Ltd.		498,635		942,986
Philippines | 0.6%
BDO Unibank, Inc. (a)		418,980		744,366
Russia | 1.5%
Sberbank of Russia (d)		645,432		1,962,999
South Africa | 1.1%
Mediclinic International, Ltd.		222,891		1,442,640
South Korea | 2.5%
Hyundai Mobis		5,930		1,608,374
Samsung Electronics Co., Ltd. GDR		2,489		1,768,943
				3,377,317

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

Annual Report  55

Description	Shares		Value
Lazard International Equity Portfolio (concluded)
Spain | 2.4%
Mediaset Espana Comunicacion SA		250,744	$	1,726,617
Red Electrica Corporacion SA		31,076		1,535,389
				3,262,006
Sweden | 5.4%
Assa Abloy AB, Class B		56,909		2,142,935
Getinge AB, B Shares		43,551		1,475,338
Sandvik AB		122,523		1,969,255
Swedbank AB, A Shares		84,548		1,663,769
				7,251,297
Switzerland | 4.6%
Novartis AG		74,473		4,714,998
Swatch Group AG		2,762		1,421,421
				6,136,419
Thailand | 1.0%
Krung Thai Bank Public Co., Ltd. (d)		2,137,800		1,369,757
Turkey | 1.6%
Koc Holding AS		161,263		838,969
Turkcell Iletisim Hizmetleri AS (a)		212,050		1,371,960
				2,210,929
United Kingdom | 22.2%
BG Group PLC		65,989		1,106,521
BHP Billiton PLC		108,161		3,800,724
British American Tobacco PLC		52,042		2,636,970
Direct Line Insurance Group PLC		377,850		1,321,361
Informa PLC		373,590		2,763,802
Petrofac, Ltd.		43,925		1,190,053
Prudential PLC		187,153		2,611,398
Reed Elsevier PLC		148,110		1,555,139
Rexam PLC		418,659		2,941,971
Royal Dutch Shell PLC, A Shares		102,850		3,634,156
Standard Chartered PLC		91,674		2,323,814
Unilever PLC		106,254		4,033,170
				29,919,079
Total Common Stocks (Identified cost $110,697,173)				131,578,430
Description	Principal Amount (000)		Value
Repurchase Agreement | 2.3%
State Street Bank and Trust Co., 0.01%, 01/02/13 (Dated 12/31/12, collateralized by $3,040,000 United States Treasury Note, 1.500%, 07/31/16, with a value of $3,170,583) Proceeds of $3,105,002 (Identified cost $3,105,000)	$	3,105	$	3,105,000
Total Investments | 100.0% (Identified cost $113,802,173) (b)			$	134,683,430
Cash and Other Assets in Excess of Liabilities | 0.0%				14,020
Net Assets | 100.0%			$	134,697,450

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

56  Annual Report

Description	Shares		Value
Lazard International Equity Select Portfolio
Common Stocks | 98.6%
Australia | 3.7%
BHP Billiton, Ltd.		7,269	$	283,877
Orica, Ltd.		3,950		103,871
				387,748
Belgium | 3.5%
Anheuser-Busch InBev NV		4,244		370,877
Brazil | 3.3%
Cielo SA		4,582		128,295
Estacio Participacoes SA		4,200		86,757
Vale SA Sponsored ADR		6,130		128,485
				343,537
Canada | 1.0%
Potash Corp. of Saskatchewan, Inc.		2,554		103,937
China | 1.5%
China Construction Bank Corp., Class H		195,000		158,926
Finland | 1.2%
Sampo Oyj, A Shares		3,843		124,269
France | 8.1%
BNP Paribas SA		2,660		149,937
LVMH Moet Hennessy Louis Vuitton SA		558		103,982
Sanofi SA		3,779		358,382
Technip SA		1,093		125,836
Valeo SA		2,125		107,751
				845,888
Germany | 7.7%
Bayer AG		1,675		159,062
Bayerische Motoren Werke AG		1,558		150,257
Merck KGaA		1,485		195,928
SAP AG		3,815		305,606
				810,853
Hong Kong | 1.8%
China Mobile, Ltd. Sponsored ADR		3,162		185,673
Description	Shares		Value
Indonesia | 2.5%
PT Bank Mandiri (Persero) Tbk		136,000	$	115,012
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		3,869		142,959
				257,971
Ireland | 1.1%
Ryanair Holdings PLC Sponsored ADR		3,220		110,381
Italy | 2.3%
Atlantia SpA		6,394		115,968
Eni SpA		5,169		127,517
				243,485
Japan | 10.7%
Canon, Inc.		3,192		125,197
Daito Trust Construction Co., Ltd.		1,565		147,270
Fanuc Corp.		486		90,378
Komatsu, Ltd.		4,900		125,388
LIXIL Group Corp.		6,400		142,521
Seven & I Holdings Co., Ltd.		3,517		98,986
SoftBank Corp.		2,600		95,139
Sumitomo Mitsui Financial Group, Inc.		5,376		195,305
Yahoo Japan Corp.		301		97,424
				1,117,608
Macau | 0.9%
Sands China, Ltd.		21,000		94,205
Mexico | 0.9%
Genomma Lab Internacional SAB de CV, B Shares (a)		45,200		92,874
Netherlands | 1.2%
ING Groep NV (a)		13,273		126,926
Norway | 0.8%
Petroleum Geo-Services ASA		5,134		88,829
Russia | 3.3%
Mobile TeleSystems OJSC Sponsored ADR		6,711		125,160
Sberbank of Russia (d)		73,980		225,001
				350,161
South Africa | 2.8%
Mediclinic International, Ltd.		17,654		114,264
Mr Price Group, Ltd.		5,341		89,223
Standard Bank Group, Ltd.		6,048		85,578
				289,065

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

Annual Report  57

Description		Shares		Value
Lazard International Equity Select Portfolio (concluded)
South Korea | 4.0%
Hyundai Mobis		607	$	164,635
KT&G Corp.		1,374		104,200
Samsung Electronics Co., Ltd.		104		148,847
				417,682
Spain | 0.8%
Red Electrica Corporacion SA		1,594		78,756
Sweden | 5.1%
Assa Abloy AB, Class B		5,744		216,293
Getinge AB, B Shares		3,381		114,535
Sandvik AB		6,939		111,527
Swedbank AB, A Shares		4,832		95,086
				537,441
Switzerland | 4.1%
Novartis AG		5,241		331,816
Swatch Group AG		191		98,295
				430,111
Taiwan | 2.2%
Taiwan Semiconductor Manufacturing Co., Ltd.		70,341		235,425
Thailand | 1.6%
Kasikornbank Public Co. Ltd.		26,900		170,792
Turkey | 2.5%
Koc Holding AS		24,753		128,777
Turkcell Iletisim Hizmetleri AS (a)		20,958		135,598
				264,375
Description	Shares		Value
United Kingdom | 20.0%
Associated British Foods PLC		3,479	$	88,554
BG Group PLC		6,142		102,991
British American Tobacco PLC		5,218		264,396
British Sky Broadcasting Group PLC		8,197		102,396
Informa PLC		22,364		165,448
Petrofac, Ltd.		5,426		147,006
Prudential PLC		14,601		203,732
Rexam PLC		24,102		169,368
Royal Dutch Shell PLC, A Shares		5,575		191,680
Standard Chartered PLC		3,899		98,834
Tullow Oil PLC		4,866		99,093
Unilever PLC		8,428		319,909
Wolseley PLC		2,750		130,710
				2,084,117
Total Common Stocks (Identified cost $9,090,635)				10,321,912
Short-Term Investment | 1.0%
State Street Institutional Treasury Money Market Fund (Identified cost $100,230)		100,230		100,230
Total Investments | 99.6%
(Identified cost $9,190,865) (b)			$	10,422,142
Cash and Other Assets in Excess of Liabilities | 0.4%				36,855
Net Assets | 100.0%			$	10,458,997

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

58  Annual Report

Description	Shares		Value
Lazard International Strategic Equity Portfolio
Common Stocks | 97.6%
Australia | 7.1%
Amcor, Ltd.		2,314,770	$	19,573,394
Ansell, Ltd.		1,655,121		26,525,333
Caltex Australia, Ltd.		1,070,954		21,583,951
James Hardie Industries PLC		1,890,767		18,291,684
				85,974,362
Belgium | 2.3%
Anheuser-Busch InBev NV		315,431		27,565,079
Bermuda | 1.4%
Signet Jewelers, Ltd.		326,396		17,212,712
Brazil | 2.3%
Anhanguera Educacional Participacoes SA		775,800		13,253,738
Estacio Participacoes SA		391,100		8,078,695
LPS Brasil Consultoria de Imoveis SA		370,000		6,846,924
				28,179,357
Canada | 1.0%
Home Capital Group, Inc.		203,511		12,085,448
Egypt | 0.0%
Eastern Tobacco SAE		25,517		401,211
Finland | 3.0%
Sampo Oyj, A Shares		1,127,230		36,450,559
France | 12.4%
BNP Paribas SA		325,870		18,368,365
Christian Dior SA		112,721		19,487,831
Cie Generale de Geophysique-Veritas (a)		811,589		24,460,169
Sanofi SA		450,650		42,737,490
Technip SA		215,799		24,844,770
Valeo SA		385,032		19,523,581
				149,422,206
Germany | 5.2%
Merck KGaA		159,499		21,043,964
Sky Deutschland AG (a)		3,936,603		21,483,196
Symrise AG		570,891		20,439,389
				62,966,549
Description		Shares		Value
Indonesia | 2.4%
PT Bank Mandiri (Persero) Tbk		15,837,600	$	13,393,440
PT Media Nusantara Citra Tbk		58,730,000		15,287,503
				28,680,943
Ireland | 3.2%
Kerry Group PLC Class A		394,401		20,918,418
Ryanair Holdings PLC Sponsored ADR		503,370		17,255,524
				38,173,942
Japan | 11.1%
Asics Corp.		1,882,550		28,680,359
Daikin Industries, Ltd.		406,600		13,970,963
Daito Trust Construction Co., Ltd.		152,300		14,331,763
Don Quijote Co., Ltd.		850,800		31,168,689
LIXIL Group Corp.		860,000		19,151,280
Makita Corp.		283,600		13,190,903
Nabtesco Corp.		602,200		13,326,465
				133,820,422
Macau | 0.9%
Sands China, Ltd.		2,509,600		11,257,953
Netherlands | 2.3%
ING Groep NV (a)		2,901,301		27,744,249
Philippines | 2.2%
Alliance Global Group, Inc.		24,309,900		9,934,987
GT Capital Holdings, Inc.		634,990		9,591,479
Security Bank Corp.		1,680,500		6,398,098
				25,924,564
Russia | 1.4%
Sberbank of Russia (d)		5,675,485		17,261,261
South Africa | 4.5%
Aspen Pharmacare Holdings, Ltd.		639,251		12,775,788
Life Healthcare Group Holdings Pte, Ltd.		2,413,628		9,696,263
Mediclinic International, Ltd.		3,066,655		19,848,628
Nampak, Ltd.		3,261,076		12,266,173
				54,586,852
Spain | 1.3%
Mediaset Espana Comunicacion SA		2,301,347		15,847,017
Sweden | 7.0%
Assa Abloy AB, Class B		526,538		19,827,034
Autoliv, Inc. SDR		315,707		21,166,030
Electrolux AB, Series B		696,305		18,287,497
Getinge AB, B Shares		750,664		25,429,573
				84,710,134

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

Annual Report  59

Description	Shares		Value
Lazard International Strategic Equity Portfolio (concluded)
Switzerland | 4.1%
Novartis AG	489,901	$	31,016,374
Swatch Group AG	36,602		18,836,650
			49,853,024
Thailand | 1.2%
Kasikornbank Public Co. Ltd.	2,297,800		14,589,099
Turkey | 0.7%
Turkiye Halk Bankasi AS	871,868		8,582,417
United Kingdom | 20.6%
AMEC PLC	756,048		12,369,599
Associated British Foods PLC	1,171,511		29,819,591
BBA Aviation PLC	3,131,542		11,332,069
British American Tobacco PLC	551,156		27,927,091
IG Group Holdings PLC	1,716,848		12,570,167
Informa PLC	5,209,379		38,538,757
Prudential PLC	2,347,479		32,755,034
Description	Shares		Value
Rexam PLC	4,490,742	$	31,557,028
Spectris PLC	275,996		9,244,846
Tullow Oil PLC	988,569		20,131,571
Unilever PLC	609,914		23,151,006
			249,396,759
Total Common Stocks (Identified cost $996,383,357)			1,180,686,119
Short-Term Investment | 1.7%
State Street Institutional Treasury Money Market Fund (Identified cost $20,768,261)	20,768,261		20,768,261
Total Investments | 99.3% (Identified cost $1,017,151,618) (b)		$	1,201,454,380
Cash and Other Assets in Excess of Liabilities | 0.7%			7,965,977
Net Assets | 100.0%		$	1,209,420,357

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

60  Annual Report

Description	Shares		Value
Lazard International Small Cap Equity Portfolio
Common Stocks | 98.2%
Australia | 6.3%
Ansell, Ltd.	40,200	$	644,254
Aristocrat Leisure, Ltd.	162,487		540,378
Echo Entertainment Group, Ltd.	124,535		449,048
James Hardie Industries PLC	101,358		980,559
Macquarie Atlas Roads Group (a)	516,294		898,892
OrotonGroup, Ltd.	64,303		461,133
			3,974,264
Austria | 3.6%
AMS AG	5,684		609,556
Andritz AG	16,295		1,046,924
Kapsch TrafficCom AG	10,290		644,029
			2,300,509
Belgium | 3.9%
Arseus NV	41,263		829,096
EVS Broadcast Equipment SA	11,432		674,442
Kinepolis Group NV	8,717		946,887
			2,450,425
China | 3.5%
AAC Technologies Holdings, Inc.	250,500		882,479
Biostime International Holdings, Ltd.	206,000		648,501
Prince Frog International Holdings, Ltd.	1,542,000		659,182
			2,190,162
France | 4.7%
Cie Generale de Geophysique-Veritas (a)	22,869		689,240
Ingenico SA	12,120		691,220
Teleperformance SA	17,705		641,659
Valeo SA	17,969		911,143
			2,933,262
Germany | 8.7%
CompuGroup Medical AG	72,153		1,387,232
CTS Eventim AG	24,097		847,976
Deutsche Wohnen AG	36,710		677,924
NORMA Group	29,655		833,260
STRATEC Biomedical AG	14,853		741,525
Wirecard AG	41,536		1,018,622
			5,506,539
Italy | 1.7%
Azimut Holding SpA	73,975		1,067,377
Description	Shares		Value
Japan | 24.2%
Ain Pharmaciez, Inc.	21,900	$	1,191,885
Asahi Co., Ltd.	47,600		681,342
Benesse Holdings, Inc.	15,600		646,593
Don Quijote Co., Ltd.	33,300		1,219,931
Doshisha Co., Ltd.	23,000		602,025
Dr. Ci:Labo Co., Ltd.	176		549,198
JAFCO Co., Ltd.	34,800		1,018,107
JSR Corp.	36,500		689,555
Konami Corp.	24,350		547,471
Misumi Group, Inc.	36,500		990,544
MonotaRO Co., Ltd.	16,200		522,359
OSG Corp.	54,600		758,015
Rinnai Corp.	10,300		699,786
Santen Pharmaceutical Co., Ltd.	18,990		727,063
Suruga Bank, Ltd.	99,300		1,219,760
Sysmex Corp.	19,900		911,742
Tamron Co., Ltd.	20,700		586,328
USS Co., Ltd.	10,930		1,132,944
Valor Co., Ltd.	34,900		547,313
			15,241,961
Mexico | 1.0%
Genomma Lab Internacional
SAB de CV, B Shares (a)	315,800		648,882
Netherlands | 2.2%
Aalberts Industries NV	40,219		850,234
Royal Imtech NV	21,949		513,256
			1,363,490
Norway | 4.1%
Kongsberg Gruppen ASA	50,706		1,138,707
Petroleum Geo-Services ASA	48,221		834,321
TGS Nopec Geophysical Co. ASA	18,531		607,266
			2,580,294
Russia | 1.1%
Globaltrans Investment PLC
Sponsored GDR	40,031		669,021
Singapore | 2.1%
Ezra Holdings, Ltd. (a)	747,000		706,974
XP Power, Ltd.	35,379		590,972
			1,297,946

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

Annual Report  61

Description	Shares		Value
Lazard International Small Cap Equity Portfolio (concluded)
Sweden | 6.4%
Elekta AB, B Shares	49,829	$	785,789
Getinge AB, B Shares	27,382		927,596
Indutrade AB	18,469		559,014
Intrum Justitia AB	55,576		831,339
Loomis AB, B Shares	57,687		927,218
			4,030,956
Switzerland | 1.8%
Dufry AG (a)	8,793		1,163,517
United Kingdom | 22.9%
Abcam PLC	95,627		600,549
Aberdeen Asset Management PLC	138,645		822,147
APR Energy PLC	43,347		577,182
Ashtead Group PLC	110,886		786,849
Dignity PLC	58,702		1,014,977
Direct Line Insurance Group PLC	204,476		715,063
Elementis PLC	189,871		720,126
Hansteen Holdings PLC REIT	534,847		715,911
Hunting PLC	49,924		652,176
IG Group Holdings PLC	162,154		1,187,235
Intertek Group PLC	18,616		939,474
John Wood Group PLC	53,823		635,954
Provident Financial PLC	35,248		788,895
Rightmove PLC	30,461		701,662
RPC Group PLC	100,383		658,610
Spectris PLC	27,613		924,933
Synergy Health PLC	44,518		789,391
Synthomer PLC	190,372		593,164
Workspace Group PLC REIT	129,573		638,290
			14,462,588
Total Common Stocks (Identified cost $48,348,409)			61,881,193
Description	Shares		Value
Preferred Stock | 1.1%
Brazil | 1.1%
Banco ABC Brasil SA (Identified cost $646,955)	104,700	$	726,608
Short-Term Investment | 0.6%
State Street Institutional Treasury Money Market Fund (Identified cost $379,335)	379,335		379,335
Total Investments | 99.9% (Identified cost $49,374,699) (b)		$	62,987,136
Cash and Other Assets in Excess of Liabilities | 0.1%			41,374
Net Assets | 100.0%		$	63,028,510

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

62  Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio
Common Stocks | 97.8%
Argentina | 0.5%
YPF Sociedad Anonima Sponsored ADR		5,391,297	$	78,443,371
Brazil | 12.7%
Banco do Brasil SA		46,392,910		591,837,332
CCR SA		22,978,900		217,907,882
Cielo SA		16,108,359		451,032,722
Natura Cosmeticos SA		6,915,500		198,432,503
Souza Cruz SA		12,087,525		183,047,280
Vale SA Sponsored ADR		18,577,800		389,390,688
				2,031,648,407
Canada | 0.6%
First Quantum Minerals, Ltd.		4,133,900		91,056,348
China | 7.0%
Baidu, Inc. Sponsored ADR (a)		1,685,800		169,068,882
China Construction Bank Corp., Class H		688,191,220		560,878,797
CNOOC, Ltd.		76,905,000		168,864,661
NetEase, Inc. Sponsored ADR (a)		2,261,056		96,207,933
Weichai Power Co., Ltd., Class H		26,719,000		121,507,419
				1,116,527,692
Colombia | 1.2%
Pacific Rubiales Energy Corp.		7,936,300		184,385,134
Egypt | 1.8%
Commercial International Bank Egypt SAE		21,260,173		115,326,410
Eastern Tobacco SAE		427,065		6,714,859
Orascom Construction Industries (a)		4,079,847		162,616,543
				284,657,812
Hong Kong | 2.7%
China Mobile, Ltd. Sponsored ADR		5,629,004		330,535,115
Huabao International Holdings, Ltd.		203,972,000		100,618,721
				431,153,836
Hungary | 1.3%
OTP Bank PLC		11,077,481		210,549,784

Description	Shares		Value
India | 4.7%
Bank of India		15,304,106	$	97,265,771
Bharat Heavy Electricals, Ltd.		31,604,979		133,681,453
Jindal Steel & Power, Ltd.		18,213,000		149,267,521
Punjab National Bank, Ltd.		14,013,624		224,587,080
Tata Consultancy Services, Ltd.		6,424,752		147,419,891
				752,221,716
Indonesia | 5.7%
PT Bank Mandiri (Persero) Tbk		269,028,430		227,510,246
PT Semen Indonesia (Persero) Tbk		78,954,300		130,065,164
PT Tambang Batubara Bukit Asam (Persero) Tbk		31,626,700		49,786,437
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		8,989,249		332,152,751
PT United Tractors Tbk		81,730,984		167,989,396
				907,503,994
Macau | 0.7%
Wynn Macau, Ltd. (a)		39,174,800		107,963,047
Malaysia | 0.8%
British American Tobacco Malaysia Berhad		6,121,600		124,263,964
Mexico | 4.1%
America Movil SAB de CV, Series L ADR		8,081,870		187,014,472
Grupo Mexico SAB de CV, Series B		46,546,447		167,910,448
Grupo Televisa SAB Sponsored ADR		6,389,700		169,838,226
Kimberly-Clark de Mexico SAB de CV, Series A		49,175,695		126,303,201
				651,066,347
Pakistan | 1.3%
Oil & Gas Development Co., Ltd.		49,655,649		98,563,317
Pakistan Petroleum, Ltd.		61,659,885		112,193,663
				210,756,980
Philippines | 1.9%
Philippine Long Distance Telephone Co. Sponsored ADR		4,931,550		302,353,330

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

Annual Report  63

Description	Shares		Value
Lazard Emerging Markets Equity Portfolio (concluded)
Russia | 10.4%
Gazprom OAO Sponsored ADR		18,863,771	$	180,882,304
Lukoil OAO Sponsored ADR		1,888,816		127,495,080
Magnit OJSC Sponsored GDR (d), (e)		3,557,165		142,642,317
MegaFon OAO GDR (a), (d), (e)		5,571,600		132,604,080
Mobile TeleSystems OJSC Sponsored ADR		18,063,043		336,875,752
Oriflame Cosmetics SA SDR		2,456,648		78,445,384
Sberbank of Russia (d)		157,848,276		480,075,327
TNK-BP Holding (d)		37,493,764		71,435,969
Uralkali OJSC Sponsored GDR		2,746,189		105,804,074
				1,656,260,287
South Africa | 12.6%
Bidvest Group, Ltd.		9,461,738		242,063,522
Imperial Holdings, Ltd.		49,672		1,178,451
Murray & Roberts Holdings, Ltd. (a)		34,284,950		100,440,789
Nedbank Group, Ltd.		6,921,388		154,781,364
PPC, Ltd.		29,543,679		119,478,548
Sanlam, Ltd.		29,425,157		157,412,716
Shoprite Holdings, Ltd.		16,221,494		394,254,360
Standard Bank Group, Ltd.		8,962,725		126,821,125
Tiger Brands, Ltd.		4,373,152		168,390,717
Truworths International, Ltd.		17,068,478		221,264,385
Vodacom Group, Ltd.		12,471,812		184,609,699
Woolworths Holdings, Ltd.		16,562,271		139,109,645
				2,009,805,321
South Korea | 14.4%
Coway Co., Ltd. (a)		4,627,934		188,799,625
Hanwha Life Insurance Co., Ltd.		30,051,333		218,437,629
Hite Jinro Co., Ltd.		1		28
Hyundai Mobis		975,470		264,573,498
KB Financial Group, Inc.		7,589,360		270,791,358
KT&G Corp.		3,335,706		252,969,235
NHN Corp.		941,032		200,654,244
Samsung Electronics Co., Ltd.		357,909		512,248,383
Shinhan Financial Group Co., Ltd.		10,521,024		382,693,335
				2,291,167,335

Description	Shares		Value
Taiwan | 4.3%
Hon Hai Precision Industry Co., Ltd.		46,730,118	$	144,054,571
MediaTek, Inc.		11,026,421		123,343,748
Taiwan Semiconductor Manufacturing Co., Ltd.		126,074,284		421,959,601
				689,357,920
Thailand | 2.9%
CP All Public Co. Ltd. (d)		90,305,400		135,797,594
PTT Exploration & Production Public Co. Ltd. (d)		26,289,670		140,944,945
The Siam Cement Public Co. Ltd.		12,063,600		185,611,485
				462,354,024
Turkey | 6.2%
Akbank TAS		39,293,017		194,287,631
Koc Holding AS		39,046,736		203,140,275
Turkcell Iletisim Hizmetleri AS (a)		48,903,645		316,405,637
Turkiye Is Bankasi AS, C Shares		78,759,961		273,749,749
				987,583,292
Total Common Stocks (Identified cost $13,799,269,168)				15,581,079,941
Preferred Stock | 1.3%
Brazil | 1.3%
Companhia de Bebidas das Americas SA Sponsored ADR (Identified cost $141,787,545)		4,909,848		206,164,517
Short-Term Investment | 1.0%
State Street Institutional Treasury Money Market Fund (Identified cost $162,901,675)		162,901,675		162,901,675
Total Investments | 100.1% (Identified cost $14,103,958,388) (b)			$	15,950,146,133
Liabilities in Excess of Cash and Other Assets | (0.1)%				(9,131,348	)
Net Assets | 100.0%			$	15,941,014,785

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

64  Annual Report

Description	Shares		Value
Lazard Developing Markets Equity Portfolio
Common Stocks | 91.4%
Brazil | 7.9%
Cia Hering		182,811	$	3,779,260
Cyrela Brazil Realty SA Empreendimentos e Participacoes		951,760		8,390,633
Localiza Rent a Car SA		194,181		3,569,036
MRV Engenharia e Participacoes SA		1,494,995		8,977,693
Totvs SA		218,963		4,312,025
Vale SA Sponsored ADR		246,615		5,169,050
				34,197,697
China | 21.2%
AAC Technologies Holdings, Inc.		1,805,700		6,361,246
Agricultural Bank of China, Ltd., Class H		21,008,500		10,592,091
Baidu, Inc. Sponsored ADR (a)		63,000		6,318,270
China Construction Bank Corp., Class H		4,006,184		3,265,057
China Merchants Bank Co., Ltd., Class H		4,634,211		10,380,378
China National Materials Co., Ltd., Class H		13,297,890		4,183,404
China State Construction International Holdings, Ltd.		4,909,340		5,970,449
Daphne International Holdings, Ltd.		5,957,000		8,251,932
First Tractor Co., Ltd., Class H (a)		4,468,000		4,473,870
Hengdeli Holdings, Ltd.		20,112,000		7,323,331
Ping An Insurance (Group) Co. of China, Ltd., Class H		1,036,000		8,815,859
Vinda International Holdings, Ltd.		3,033,000		4,187,274
Zhuzhou CSR Times Electric Co., Ltd., Class H		1,123,000		4,240,529
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H		4,883,600		7,372,303
				91,735,993
Colombia | 4.0%
Bancolombia SA Sponsored ADR		96,500		6,424,970
Pacific Rubiales Energy Corp.		468,429		10,883,074
				17,308,044

Description	Shares		Value
India | 9.0%
Cairn India, Ltd.		1,191,873	$	6,964,478
HDFC Bank, Ltd. Sponsored ADR		136,400		5,554,208
ICICI Bank, Ltd. Sponsored ADR		295,330		12,879,341
Maruti Suzuki India, Ltd.		151,648		4,158,536
Shriram Transport Finance Co., Ltd.		692,426		9,448,099
				39,004,662
Indonesia | 2.9%
PT Bank Rakyat Indonesia (Persero) Tbk		11,878,800		8,650,998
PT XL Axiata Tbk		6,605,000		3,922,065
				12,573,063
Macau | 1.5%
Sands China, Ltd.		1,489,200		6,680,484
Mexico | 5.3%
Corporacion Geo SAB de CV, Series B (a)		4,462,606		5,219,947
Genomma Lab Internacional SAB de CV, B Shares (a)		4,669,000		9,593,514
Grupo Financiero Banorte SAB de CV, Class O		1,288,457		8,320,054
				23,133,515
Peru | 1.9%
Credicorp, Ltd.		55,600		8,148,736
Philippines | 0.7%
SM Investments Corp.		144,361		3,102,916
Qatar | 0.8%
Qatar Electricity & Water Co.		95,094		3,458,865
Russia | 17.9%
Alliance Oil Co., Ltd. SDR (a)		476,603		3,912,181
Eurasia Drilling Co., Ltd. GDR		151,620		5,442,204
Globaltrans Investment PLC Sponsored GDR		668,750		11,106,439
Novatek OAO Sponsored GDR		66,932		8,062,964
Rosneft Oil Co. OJSC GDR		647,032		5,842,220
Sberbank of Russia (d)		4,089,285		12,437,037
TMK OAO GDR		453,862		7,054,677
Uralkali OJSC Sponsored GDR		145,832		5,618,557
VTB Bank OJSC GDR		1,153,320		4,026,274
X5 Retail Group NV GDR (a)		355,637		6,371,605
Yandex NV Class A (a)		344,200		7,424,394
				77,298,552

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

Annual Report  65

Description	Shares		Value
Lazard Developing Markets Equity Portfolio (concluded)
South Africa | 4.2%
Barloworld, Ltd.		486,533	$	5,014,846
Exxaro Resources, Ltd.		428,560		8,772,598
Standard Bank Group, Ltd.		310,288		4,390,526
				18,177,970
South Korea | 5.4%
Kia Motors Corp.		154,936		8,244,330
Mando Corp.		23,253		2,807,383
Samsung Electronics Co., Ltd.		8,730		12,494,596
				23,546,309
Taiwan | 3.8%
Catcher Technology Co., Ltd.		1,379,000		6,901,684
Synnex Technology International Corp.		3,384,989		6,289,274
Yuanta Financial Holding Co., Ltd.		6,263,159		3,240,768
				16,431,726
Turkey | 3.1%
Aselsan Elektronik Sanayi Ve Ticaret AS		1,546,017		7,325,036
Emlak Konut Gayrimenkul Yatirim Ortakligi AS		3,242,325		5,686,356
				13,011,392
United States | 1.8%
First Cash Financial Services, Inc. (a)		88,700		4,401,294
Freeport-McMoRan Copper & Gold, Inc.		92,500		3,163,500
				7,564,794
Total Common Stocks
(Identified cost $387,414,088)				395,374,718

Description	Shares		Value
Preferred Stocks | 5.9%
Brazil | 5.9%
Banco Bradesco SA Sponsored ADR		429,508	$	7,460,554
Gerdau SA Sponsored ADR		578,450		5,200,266
Marcopolo SA		885,600		5,654,471
Petroleo Brasileiro SA Sponsored ADR		381,400		7,361,020
Total Preferred Stocks
(Identified cost $26,017,764)				25,676,311
Short-Term Investment | 2.1%
State Street Institutional Treasury Money Market Fund (Identified cost $9,266,728)		9,266,728		9,266,728
Total Investments | 99.4%
(Identified cost $422,698,580) (b)			$	430,317,757
Cash and Other Assets in Excess of Liabilities | 0.6%				2,805,187
Net Assets | 100.0%			$	433,122,944

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

66  Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio
Common Stocks | 90.8%
Argentina | 0.2%
YPF Sociedad Anonima Sponsored ADR		33,975	$	494,336
Brazil | 7.2%
Arteris SA		61,400		569,329
Banco do Brasil SA		218,807		2,791,335
Brasil Brokers Participacoes SA		184,900		619,847
Brasil Insurance Participacoes e Administracao SA		66,505		647,838
Cia Hering		62,827		1,298,826
Cielo SA Sponsored ADR		95,947		2,768,071
Companhia de Locacao das Americas		99,600		592,262
Grendene SA		78,200		633,697
MRV Engenharia e Participacoes SA		687,100		4,126,150
Natura Cosmeticos SA		46,750		1,341,439
Souza Cruz SA		120,095		1,818,657
				17,207,451
Cambodia | 0.2%
NagaCorp, Ltd.		912,000		558,781
Canada | 0.5%
First Quantum Minerals, Ltd.		49,905		1,099,244
China | 14.7%
AAC Technologies Holdings, Inc.		894,140		3,149,939
Agricultural Bank of China, Ltd., Class H		11,217,000		5,655,401
Baidu, Inc. Sponsored ADR (a)		14,450		1,449,190
Biostime International Holdings, Ltd.		194,000		610,725
China Construction Bank Corp., Class H		4,232,461		3,449,474
China State Construction International Holdings, Ltd.		3,506,504		4,264,403
CNOOC, Ltd.		999,000		2,193,561
Daphne International Holdings, Ltd.		2,826,000		3,914,715
Ping An Insurance (Group) Co. of China, Ltd., Class H		503,500		4,284,541
Prince Frog International Holdings, Ltd.		2,078,000		888,314
Shenguan Holdings Group, Ltd.		1,120,000		609,996
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H		3,072,640		4,638,470
				35,108,729

Description	Shares		Value
Colombia | 3.8%
Bancolombia SA Sponsored ADR		53,420	$	3,556,704
Pacific Rubiales Energy Corp.		238,200		5,534,133
				9,090,837
Egypt | 1.0%
Commercial International Bank Egypt SAE		221,593		1,202,038
Orascom Construction Industries (a)		32,659		1,301,738
				2,503,776
Georgia | 0.2%
Bank of Georgia Holdings PLC		34,272		573,321
Hong Kong | 1.3%
China Mobile, Ltd. Sponsored ADR		30,600		1,796,832
REXLot Holdings, Ltd.		9,225,000		704,424
Stella International Holdings, Ltd.		214,500		581,468
				3,082,724
Hungary | 0.7%
OTP Bank PLC		93,512		1,777,383
India | 2.3%
ICICI Bank, Ltd. Sponsored ADR		125,790		5,485,702
Indonesia | 3.9%
PT Bank Mandiri (Persero) Tbk		1,861,000		1,573,799
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk		5,709,000		629,372
PT Bank Rakyat Indonesia (Persero) Tbk		4,761,618		3,467,753
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		56,350		2,082,132
PT United Tractors Tbk		739,515		1,519,995
				9,273,051
Macau | 1.7%
Sands China, Ltd.		908,000		4,073,247
Mexico | 7.9%
America Movil SAB de CV, Series L ADR		63,208		1,462,633
Corporacion Geo SAB de CV, Series B (a)		1,224,400		1,432,191
Genomma Lab Internacional SAB de CV, B Shares (a)		2,552,800		5,245,304
Grupo Financiero Banorte SAB de CV, Class O		830,600		5,363,498
Grupo Mexico SAB de CV, Series B		385,101		1,389,203
Grupo Televisa SAB Sponsored ADR		81,573		2,168,210
Kimberly-Clark de Mexico SAB de CV, Series A		735,100		1,888,036
				18,949,075

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

Annual Report  67

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio (continued)
Philippines | 0.9%
Philippine Long Distance Telephone Co. Sponsored ADR		34,092	$	2,090,180
Russia | 16.9%
Alliance Oil Co., Ltd. SDR (a)		267,173		2,193,082
CTC Media, Inc.		72,500		564,050
Dixy Group (a), (d)		55,023		720,835
Eurasia Drilling Co., Ltd. GDR		92,011		3,302,616
Gazprom OAO Sponsored ADR		177,936		1,706,206
Globaltrans Investment PLC
Sponsored GDR		291,248		4,867,500
Lukoil OAO Sponsored ADR		24,668		1,665,090
MegaFon OAO GDR (a), (d), (e)		49,784		1,184,859
Mobile TeleSystems OJSC Sponsored ADR		130,320		2,430,468
Oriflame Cosmetics SA SDR		38,815		1,239,436
Sberbank of Russia (d)		1,297,323		3,945,642
Sberbank of Russia Sponsored ADR		232,297		2,917,650
TMK OAO GDR		226,650		3,522,971
Uralkali OJSC Sponsored GDR		106,109		4,088,125
X5 Retail Group NV GDR (a)		121,594		2,181,826
Yandex NV Class A (a)		179,200		3,865,344
				40,395,700
South Africa | 7.7%
AVI, Ltd.		80,821		570,167
Barloworld, Ltd.		362,982		3,741,368
Exxaro Resources, Ltd.		186,787		3,823,519
Nampak, Ltd.		164,365		618,241
Standard Bank Group, Ltd.		392,841		5,558,637
The Spar Group, Ltd.		38,730		602,903
Tiger Brands, Ltd.		44,252		1,703,949
Truworths International, Ltd.		138,006		1,789,018
				18,407,802
South Korea | 9.8%
Hanwha Life Insurance Co., Ltd.		232,482		1,689,869
Hy-Lok Corp.		31,804		590,508
Hyundai Marine & Fire Insurance Co., Ltd.		18,510		577,843
Hyundai Mobis		7,690		2,085,733
Kia Motors Corp.		51,232		2,726,116
KT&G Corp.		24,035		1,822,737
Mando Corp.		16,843		2,033,490
NHN Corp.		8,151		1,738,020
Samsung Electronics Co., Ltd.		5,522		7,903,226
Shinhan Financial Group Co., Ltd.		64,850		2,358,864
				23,526,406

Description	Shares		Value
Taiwan | 4.7%
Catcher Technology Co., Ltd.		637,000	$	3,188,087
Hon Hai Precision Industry Co., Ltd.		464,709		1,432,555
Makalot Industrial Co., Ltd.		183,000		570,747
Radiant Opto-Electronics Corp.		134,000		555,691
Synnex Technology International Corp.		1,397,190		2,595,965
Taiwan Semiconductor Manufacturing Co., Ltd.		845,000		2,828,141
				11,171,186
Thailand | 0.7%
Dynasty Ceramic Public Co., Ltd. (d)		385,000		572,655
Major Cineplex Group Public Co., Ltd. (d)		880,100		546,646
Thai Union Frozen Products Public Co., Ltd. (d)		235,600		554,534
				1,673,835
Turkey | 3.4%
Koc Holding AS ADR		95,712		2,503,826
TAV Havalimanlari Holding AS		116,338		595,777
Turkcell Iletisim Hizmetleri AS ADR (a)		118,255		1,908,635
Turkiye Is Bankasi AS, C Shares		705,819		2,453,249
Turkiye Sinai Kalkinma Bankasi AS		509,850		655,988
				8,117,475
United States | 1.1%
Freeport-McMoRan Copper & Gold, Inc.		75,300		2,575,260
Total Common Stocks
(Identified cost $202,757,275)				217,235,501
Preferred Stocks | 5.1%
Brazil | 5.1%
Banco ABC Brasil SA		92,980		645,272
Banco Bradesco SA Sponsored ADR		156,500		2,718,405
Marcopolo SA		436,800		2,788,926
Petroleo Brasileiro SA Sponsored ADR		169,300		3,267,490
Vale SA Sponsored ADR		136,800		2,777,040
Total Preferred Stocks
(Identified cost $11,833,814)				12,197,133

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

68  Annual Report

Description	Shares		Value
Lazard Emerging Markets Equity Blend Portfolio (concluded)
Short-Term Investment | 3.4%
State Street Institutional Treasury Money Market Fund (Identified cost $8,062,460)		8,062,460	$	8,062,460

Description	Value
Total Investments | 99.3%
(Identified cost $222,653,549) (b)	$	237,495,094
Cash and Other Assets in Excess of Liabilities | 0.7%		1,664,939
Net Assets | 100.0%	$	239,160,033

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

Annual Report  69

Description	Shares		Value
Lazard Emerging Markets Multi-Strategy Portfolio
Common Stocks | 60.0%
Argentina | 0.1%
YPF Sociedad Anonima Sponsored ADR		11,687	$	170,046
Brazil | 4.8%
Arteris SA		22,400		207,703
Banco do Brasil SA		59,490		758,918
Banco do Brasil SA Sponsored ADR		15,660		198,412
Brasil Brokers Participacoes SA		69,400		232,652
Brasil Insurance Participacoes e Administracao SA		24,205		235,786
Cia Hering		21,790		450,466
Cielo SA Sponsored ADR		33,698		972,187
Companhia de Locacao das Americas		36,400		216,449
Grendene SA		28,500		230,951
MRV Engenharia e Participacoes SA		238,170		1,430,250
Natura Cosmeticos SA		16,140		463,119
Souza Cruz SA		41,540		629,061
				6,025,954
Cambodia | 0.2%
NagaCorp, Ltd.		332,000		203,416
Canada | 0.3%
First Quantum Minerals, Ltd.		17,220		379,300
China | 9.7%
AAC Technologies Holdings, Inc.		310,000		1,092,090
Agricultural Bank of China, Ltd., Class H		3,887,000		1,959,752
Baidu, Inc. Sponsored ADR (a)		4,985		499,946
Biostime International Holdings, Ltd.		70,500		221,939
China Construction Bank Corp., Class H		1,465,000		1,193,981
China State Construction International Holdings, Ltd.		1,215,600		1,478,341
CNOOC, Ltd.		345,000		757,536
Daphne International Holdings, Ltd.		980,000		1,357,545
Ping An Insurance (Group) Co. of China, Ltd., Class H		174,500		1,484,911
Prince Frog International Holdings, Ltd.		744,000		318,049
Shenguan Holdings Group, Ltd.		412,000		224,391
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H		1,064,780		1,607,396
				12,195,877
Description	Shares		Value
Colombia | 2.5%
Bancolombia SA Sponsored ADR		18,480	$	1,230,398
Pacific Rubiales Energy Corp.		82,550		1,917,895
				3,148,293
Egypt | 0.7%
Commercial International Bank Egypt SAE		66,723		361,941
Commercial International Bank Egypt SAE GDR		9,582		52,144
Orascom Construction Industries (a)		11,245		448,209
				862,294
Georgia | 0.2%
Bank of Georgia Holdings PLC		12,575		210,362
Hong Kong | 0.9%
China Mobile, Ltd. Sponsored ADR		10,460		614,211
REXLot Holdings, Ltd.		3,375,000		257,716
Stella International Holdings, Ltd.		78,500		212,799
				1,084,726
Hungary | 0.5%
OTP Bank PLC		32,355		614,972
India | 1.5%
ICICI Bank, Ltd. Sponsored ADR		43,600		1,901,396
Indonesia | 2.5%
PT Bank Mandiri (Persero) Tbk		643,500		544,191
PT Bank Pembangunan Daerah Jawa Barat dan Banten Tbk		2,086,500		230,020
PT Bank Rakyat Indonesia (Persero) Tbk		1,650,000		1,201,649
PT Telekomunikasi Indonesia (Persero) Tbk Sponsored ADR		19,460		719,047
PT United Tractors Tbk		256,015		526,212
				3,221,119
Macau | 1.1%
Sands China, Ltd.		314,800		1,412,178
Mexico | 5.2%
America Movil SAB de CV, Series L ADR		21,810		504,684
Corporacion Geo SAB de CV, Series B (a)		398,200		465,778
Genomma Lab Internacional SAB de CV, B Shares (a)		886,500		1,821,514
Grupo Financiero Banorte SAB de CV, Class O		287,800		1,858,433
Grupo Mexico SAB de CV, Series B		122,309		441,214
Grupo Televisa SAB Sponsored ADR		28,292		752,001
Kimberly-Clark de Mexico SAB de CV, Series A		253,935		652,209
				6,495,833

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

70  Annual Report

Description	Shares		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Philippines | 0.6%
Philippine Long Distance Telephone Co. Sponsored ADR	11,853	$	726,707
Russia | 11.1%
Alliance Oil Co., Ltd. SDR (a)	92,584		759,973
CTC Media, Inc.	26,630		207,181
Dixy Group (a), (d)	19,057		249,658
Eurasia Drilling Co., Ltd. GDR	31,885		1,144,471
Gazprom OAO Sponsored ADR	61,630		590,962
Globaltrans Investment PLC Sponsored GDR	101,783		1,701,055
Lukoil OAO Sponsored ADR	8,585		579,488
MegaFon OAO GDR (a), (d), (e)	17,181		408,908
Mobile TeleSystems OJSC Sponsored ADR	45,110		841,302
Oriflame Cosmetics SA SDR	13,444		429,292
Sberbank of Russia (d)	449,566		1,367,297
Sberbank of Russia Sponsored ADR	80,312		1,008,719
TMK OAO GDR	74,262		1,154,303
Uralkali OJSC Sponsored GDR	37,025		1,426,484
X5 Retail Group NV GDR (a)	42,136		756,069
Yandex NV Class A (a)	62,100		1,339,497
			13,964,659
South Africa | 5.1%
AVI, Ltd.	29,445		207,725
Barloworld, Ltd.	125,786		1,296,515
Exxaro Resources, Ltd.	64,728		1,324,978
Nampak, Ltd.	59,981		225,612
Standard Bank Group, Ltd.	137,378		1,943,877
The Spar Group, Ltd.	14,133		220,006
Tiger Brands, Ltd.	15,349		591,022
Truworths International, Ltd.	47,703		618,390
			6,428,125
South Korea | 6.5%
Hanwha Life Insurance Co., Ltd.	80,470		584,922
Hy-Lok Corp.	11,645		216,214
Hyundai Marine & Fire Insurance Co., Ltd.	6,610		206,350
Hyundai Mobis	2,717		736,923
Kia Motors Corp.	17,754		944,712
KT&G Corp.	8,283		628,156
Mando Corp.	5,837		704,713
NHN Corp.	2,843		606,207

Description	Shares		Value
Samsung Electronics Co., Ltd.		1,603	$	2,294,254
Samsung Electronics Co., Ltd. GDR		613		433,135
Shinhan Financial Group Co., Ltd.		14,960		544,157
Shinhan Financial Group Co., Ltd. ADR		7,532		275,972
				8,175,715
Taiwan | 3.1%
Catcher Technology Co., Ltd.		221,000		1,106,071
Hon Hai Precision Industry Co., Ltd. GDR		81,521		492,024
Makalot Industrial Co., Ltd.		66,000		205,843
Radiant Opto-Electronics Corp.		49,000		203,201
Synnex Technology International Corp.		484,000		899,267
Taiwan Semiconductor Manufacturing Co., Ltd. Sponsored ADR		57,076		979,424
				3,885,830
Thailand | 0.5%
Dynasty Ceramic Public Co., Ltd. (d)		140,500		208,982
Major Cineplex Group Public Co., Ltd. (d)		321,100		199,441
Thai Union Frozen Products Public Co., Ltd. (d)		86,200		202,890
				611,313
Turkey | 2.2%
Koc Holding AS ADR		33,104		866,001
TAV Havalimanlari Holding AS		42,599		218,153
Turkcell Iletisim Hizmetleri AS ADR (a)		40,850		659,319
Turkiye Is Bankasi AS, C Shares		244,541		849,963
Turkiye Sinai Kalkinma Bankasi AS		186,057		239,386
				2,832,822
United States | 0.7%
Freeport-McMoRan Copper & Gold, Inc.		26,100		892,620
Total Common Stocks (Identified cost $70,909,049)				75,443,557
Preferred Stocks | 3.4%
Brazil | 3.4%
Banco ABC Brasil SA		34,027		236,144
Banco Bradesco SA Sponsored ADR		54,200		941,454
Marcopolo SA		151,400		966,675
Petroleo Brasileiro SA Sponsored ADR		58,700		1,132,910
Vale SA Sponsored ADR		47,290		959,987
Total Preferred Stocks (Identified cost $4,172,974)				4,237,170

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

Annual Report  71

Description	Security Currency		Principal Amount (000)		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Corporate Bonds | 6.0%
Brazil | 0.8%
Arcos Dorados Holdings, Inc., 10.250%, 07/13/16		BRL	250	$	129,793
Banco do Brasil SA, 9.250%, 04/15/23		USD	200		247,500
Odebrecht Finance, Ltd.:
7.125%, 06/26/42		USD	200		232,000
7.125%, 06/26/42 (e)		USD	200		232,000
Vale Overseas, Ltd., 8.250%, 01/17/34		USD	100		136,760
Vale SA, 5.625%, 09/11/42		USD	75		81,420
					1,059,473
Chile | 0.1%
Automotores Gildemeister SA, 8.250%, 05/24/21		USD	100		109,750
China | 0.2%
China Liansu Group Holdings Ltd., 7.875%, 05/13/16		USD	275		288,406
Colombia | 0.3%
Pacific Rubiales Energy Corp.:
7.250%, 12/12/21		USD	100		115,500
7.250%, 12/12/21 (e)		USD	215		248,325
					363,825
Georgia | 0.1%
Bank of Georgia JSC, 7.750%, 07/05/17		USD	200		203,000
Guatemala | 0.2%
Industrial Senior Trust, 5.500%, 11/01/22 (e)		USD	200		200,000
India | 0.2%
Vedanta Resources PLC, 9.500%, 07/18/18		USD	225		259,605
Indonesia | 0.2%
GT 2005 Bonds BV, 8.000%, 07/21/14 (g)		USD	110		110,550
PT Berau Coal Energy Tbk, 7.250%, 03/13/17		USD	200		197,000
					307,550

Description	Security Currency		Principal Amount (000)		Value
Kazakhstan | 0.4%
Halyk Savings Bank of Kazakhstan JSC, 7.250%, 05/03/17		USD		225	$	246,150
Zhaikmunai LP, 7.125%, 11/13/19 (e)		USD		200		209,500
						455,650
Mexico | 0.8%
America Movil SAB de CV, 6.450%, 12/05/22		MXN		2,000		159,077
Bio Pappel SAB de CV, 7.000%, 08/27/16 (g)		USD		150		139,500
Cemex SAB de CV, 9.500%, 06/15/18 (e)		USD		250		280,937
Mexichem SAB de CV, 6.750%, 09/19/42 (e)		USD		200		224,500
TV Azteca SAB de CV, 7.500%, 05/25/18		USD		200		215,000
						1,019,014
Nigeria | 0.2%
Afren PLC, 11.500%, 02/01/16		USD		200		231,500
Paraguay | 0.2%
Telefonica Celular del Paraguay SA, 6.750%, 12/13/22 (e)		USD		225		235,688
Peru | 0.2%
Corp. Azucarera del Peru SA, 6.375%, 08/02/22 (e)		USD		200		216,000
Russia | 1.7%
EuroChem Mineral & Chemical Co., 5.125%, 12/12/17 (e)		USD		200		205,000
Gazprom Neft OAO, 4.375%, 09/19/22 (e)		USD		225		230,063
Gazprom OAO, 8.625%, 04/28/34		USD		155		223,071
Metalloinvest Finance, Ltd., 6.500%, 07/21/16		USD		200		210,250
MTS International Funding, Ltd., 8.625%, 06/22/20		USD		225		283,781
OJSC Novolipetsk Steel, 4.950%, 09/26/19 (e)		USD		200		202,178
Rosneft Oil Co., 4.199%, 03/06/22 (e)		USD		225		229,219

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

72  Annual Report

Description	Security Currency		Principal Amount (000)		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Russian Standard Bank, 7.730%, 12/16/15		USD		100	$	98,500
Severstal OAO, 6.250%, 07/26/16		USD		200		213,200
TMK OAO, 7.750%, 01/27/18		USD		200		210,000
						2,105,262
South Africa | 0.2%
Sasol Financing International PLC, 4.500%, 11/14/22		USD		225		226,125
Turkey | 0.1%
Turkiye Is Bankasi AS, 6.000%, 10/24/22 (e)		USD		200		210,750
Ukraine | 0.1%
DTEK Finance BV, 9.500%, 04/28/15		USD		125		125,931
Total Corporate Bonds (Identified cost $7,309,436)						7,617,529
Foreign Government Obligations | 8.3%
Belarus | 0.1%
Republic of Belarus, 8.750%, 08/03/15		USD		150		153,660
Congo | 0.2%
Republic of Congo:
3.000%, 06/30/29 (e), (g)		USD		235		199,857
3.000%, 06/30/29 (g)		USD		94		81,353
						281,210
Dominican Republic | 0.1%
Dominican Republic:
16.000%, 02/07/14		DOP		1,000		26,844
11.700%, 06/06/14		DOP		2,500		64,420
						91,264
El Salvador | 0.1%
Republic of El Salvador, 5.875%, 01/30/25 (e)		USD		120		120,750
Georgia | 0.2%
Republic of Georgia, 6.875%, 04/12/21		USD		200		231,000

Description	Security Currency		Principal Amount (000)		Value
Ghana | 0.1%
Ghana Government Bonds:
21.000%, 10/26/15		GHS		60	$	31,145
26.000%, 06/05/17		GHS		105		63,915
23.000%, 08/21/17		GHS		90		50,818
						145,878
Hungary | 0.2%
Hungary Treasury Bills:
0.000%, 03/27/13		HUF		25,300		113,183
0.000%, 04/17/13		HUF		17,400		77,605
						190,788
Iraq | 0.6%
Republic of Iraq, 5.800%, 01/15/28		USD		750		708,750
Ivory Coast | 0.8%
Ivory Coast, 3.750%, 12/31/32 (g)		USD		1,025		955,812
Malaysia | 1.2%
Bank Negara Monetary Notes:
0.000%, 01/22/13		MYR		740		241,587
0.000%, 02/26/13		MYR		950		309,246
0.000%, 02/28/13		MYR		1,110		361,269
0.000%, 03/28/13		MYR		1,300		422,170
0.000%, 04/02/13		MYR		700		226,283
						1,560,555
Mexico | 1.4%
Mexican Cetes:
0.000%, 01/17/13		MXN		45,000		347,397
0.000%, 02/07/13		MXN		53,000		408,332
0.000%, 02/21/13		MXN		93,100		716,189
0.000%, 03/21/13		MXN		37,000		283,553
						1,755,471
Nigeria | 0.6%
Nigeria Treasury Bills:
0.000%, 03/07/13		NGN		8,000		50,089
0.000%, 04/11/13		NGN		7,000		43,251
0.000%, 05/09/13		NGN		13,000		79,858
0.000%, 06/06/13		NGN		8,000		48,704
0.000%, 11/07/13		NGN		20,000		115,804
Nigeria Treasury Bonds:
16.000%, 06/29/19		NGN		12,000		90,244
16.390%, 01/27/22		NGN		8,000		63,426
Republic of Nigeria, 6.750%, 01/28/21		USD		200		236,500
						727,876

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

Annual Report   73

Description	Security Currency		Principal Amount (000)		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
Romania | 0.2%
Romania Government Bond, 6.750%, 02/07/22		USD		164	$	199,260
Senegal | 0.2%
Republic of Senegal, 8.750%, 05/13/21		USD		200		237,000
Serbia | 0.0%
Serbia Treasury Bill, 0.000%, 01/03/14		RSD		3,000		31,412
Slovenia | 0.4%
Republic of Slovenia, 5.500%, 10/26/22 (e)		USD		450		473,031
South Africa | 0.1%
Republic of South Africa, 5.500%, 12/07/23		ZAR		905		157,638
Turkey | 1.0%
Turkey Government Bonds:
0.000%, 07/17/13		TRY		435		235,840
10.000%, 12/04/13		TRY		120		69,580
9.000%, 03/08/17		TRY		500		307,184
3.000%, 07/21/21		TRY		632		405,869
3.000%, 02/23/22		TRY		334		218,430
						1,236,903
Uruguay | 0.1%
Republic Orient Uruguay, 5.000%, 09/14/18		UYU		1,605		96,072
Uruguay Monetary Regulation Bill, 0.000%, 10/18/13		UYU		1,587		77,063
						173,135
Venezuela | 0.4%
Republic of Venezuela:
7.750%, 10/13/19		USD		155		146,088
8.250%, 10/13/24		USD		285		262,200
9.250%, 05/07/28		USD		155		152,675
						560,963
Description	Security Currency		Principal Amount (000)		Value
Zambia | 0.3%
Republic of Zambia, 5.375%, 09/20/22 (e)		USD		400	$	398,500
Total Foreign Government Obligations (Identified cost $9,897,252)						10,390,856
Quasi Government Bonds | 1.7%
Angola | 0.9%
Northern Lights III BV, 7.000%, 08/16/19		USD		1,075		1,189,219
Colombia | 0.1%
Empresas Publicas de Medellin ESP, 8.375%, 02/01/21		COP		100,000		65,371
Russia | 0.3%
Russian Agricultural Bank OJSC, 8.625%, 02/17/17 (e)		RUB		11,500		382,994
South Korea | 0.1%
Export-Import Bank of Korea:
8.300%, 03/15/14		IDR		430,000		45,782
8.400%, 07/06/16		IDR		850,000		94,062
						139,844
Venezuela | 0.3%
Petroleos de Venezuela SA, 5.250%, 04/12/17		USD		445		388,262
Total Quasi Government Bonds (Identified cost $2,113,339)						2,165,690
Supranationals | 0.1%
European Bank for Reconstruction & Development, 7.200%, 06/08/16		IDR		560,000		62,467
Inter-American Development Bank, 0.000%, 08/20/15		IDR		900,000		80,852
Total Supranationals (Identified cost $153,570)						143,319

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

74   Annual Report

Description	Security Currency		Principal Amount (000)		Value
Lazard Emerging Markets Multi-Strategy Portfolio (continued)
U.S. Treasury Securities | 9.9%
U.S. Treasury Notes:
2.500%, 03/31/13		USD		2,500	$	2,514,648
3.125%, 04/30/13		USD		6,800		6,867,204
3.625%, 05/15/13		USD		3,000		3,039,033
Total U.S. Treasury Securities (Identified cost $12,420,962)						12,420,885
Description			Shares		Value
Short-Term Investment | 8.9%
State Street Institutional Treasury Money Market Fund (Identified cost $11,233,357)				11,233,357	$	11,233,357
Total Investments | 98.3% (Identified cost $118,209,939) (b), (f)						123,652,363
Description			Number of Contracts		Value
Purchased Options | 0.1%
MXN vs JPY February 13 6.35 Call, Expires 02/01/13				100,000	$	45,643
USD vs BRL February 13 2.05 Put, Expires 02/07/13				4,500		4,320
USD vs BRL February 13 2.05 Put, Expires 02/08/13				4,500		4,410
USD vs CLP February 13 470.00 Put, Expires 02/11/13				18,000		4,140
Description			Number of Contracts		Value
USD vs INR January 13 55.00 Put, Expires 01/31/13				9,000	$	10,080
USD vs INR February 13 55.00 Put, Expires 02/01/13				4,500		5,085
USD vs INR February 13 55.00 Put, Expires 02/15/13				9,000		11,160
USD vs MXN January 13 12.50 Put, Expires 01/10/13				20,000		1,200
USD vs MXN January 13 12.93 Put, Expires 01/18/13				12,000		13,920
USD vs MXN January 13 12.95 Put, Expires 01/18/13				20,000		25,600
USD vs MXN January 13 12.50 Put, Expires 01/24/13				10,000		1,400
USD vs MXN January 13 12.50 Put, Expires 01/25/13				10,000		1,500
USD vs MXN February 13 12.50 Put, Expires 02/01/13				10,000		2,000
USD vs MXN February 13 12.75 Put, Expires 02/11/13				9,000		7,380
USD vs PLN February 13 3.10 Put, Expires 02/12/13				4,500		6,525
USD vs PLN February 13 3.10 Put, Expires 02/15/13				4,500		6,750
Total Purchased Options (Identified cost $134,904)						151,113
Total Investments and Purchased Options | 98.4% (Identified cost $118,344,843)					$	123,803,476
Cash and Other Assets in Excess of Liabilities | 1.6%						2,073,232
Net Assets | 100.0%					$	125,876,708

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

Annual Report   75

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2012:

Currency	Counterparty	Expiration Date	Foreign Currency Amount		U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts
BRL	BRC	01/03/13		290,979	$	138,614	$	142,114	$	3,500	$	—
BRL	BRC	01/03/13		315,234		151,231		153,960		2,729		—
BRL	BRC	01/03/13		353,136		168,000		172,472		4,472		—
BRL	BRC	01/03/13		387,972		183,934		189,486		5,552		—
BRL	BRC	02/04/13		300,000		145,610		145,904		294		—
BRL	BRC	03/04/13		3,055,257		1,444,224		1,480,977		36,753		—
BRL	HSB	01/03/13		290,979		138,581		142,114		3,533		—
BRL	HSB	01/03/13		387,972		183,890		189,485		5,595		—
BRL	HSB	02/04/13		93,810		45,504		45,625		121		—
BRL	JPM	01/03/13		964,794		472,128		471,206		—		922
BRL	RBC	01/03/13		892,764		434,540		436,026		1,486		—
BRL	SSB	01/03/13		315,234		150,811		153,960		3,149		—
BRL	UBS	01/03/13		315,234		150,233		153,960		3,727		—
BRL	UBS	01/03/13		315,234		151,191		153,960		2,769		—
BRL	UBS	01/03/13		387,972		183,890		189,485		5,595		—
BRL	UBS	02/04/13		300,000		145,610		145,904		294		—
CLP	CIT	01/10/13		133,652,500		277,000		278,902		1,902		—
CLP	UBS	01/31/13		124,249,600		256,000		258,537		2,537		—
CLP	UBS	02/11/13		127,182,000		264,000		264,250		250		—
CNY	BRC	02/19/13		2,105,000		333,942		336,711		2,769		—
CNY	BRC	02/26/13		2,041,000		323,737		326,276		2,539		—
CNY	JPM	05/28/13		3,748,203		595,000		596,085		1,085		—
COP	CIT	01/08/13		214,888,320		119,250		121,569		2,319		—
COP	UBS	01/08/13		106,849,360		60,163		60,448		285		—
COP	UBS	01/08/13		552,976,000		304,000		312,836		8,836		—
COP	UBS	01/24/13		415,410,000		227,000		234,745		7,745		—
COP	UBS	02/28/13		263,692,000		143,000		148,499		5,499		—
CRC	CIT	03/27/13		27,523,000		50,000		53,314		3,314		—
CZK	BNP	01/08/13		4,850,458		246,214		255,185		8,971		—
CZK	JPM	01/07/13		8,013,443		413,935		421,589		7,654		—
CZK	JPM	01/10/13		12,460,720		655,000		655,576		576		—
DOP	CIT	01/18/13		6,375,300		158,000		158,886		886		—
EUR	BNP	02/25/13		196,804		261,666		259,890		—		1,776
EUR	CIT	02/20/13		358,552		457,259		473,467		16,208		—
EUR	HSB	02/28/13		87,000		113,703		114,892		1,189		—
EUR	JPM	02/26/13		36,026		46,159		47,575		1,416		—
EUR	UBS	02/28/13		272,136		352,000		359,381		7,381		—
GHS	SCB	01/17/13		729,044		381,000		379,700		—		1,300
HUF	CIT	01/07/13		12,570,050		58,000		56,919		—		1,081
HUF	CIT	02/07/13		12,570,050		58,114		56,708		—		1,406
HUF	JPM	01/04/13		16,604,090		74,327		75,212		885		—

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

76  Annual Report

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2012 (continued):

Currency	Counterparty	Expiration Date	Foreign Currency Amount		U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts (continued)
HUF	JPM	01/04/13		35,000,000	$	156,676	$	158,541	$	1,865	$	—
HUF	JPM	02/27/13		4,724,000		21,801		21,267		—		534
HUF	JPM	02/27/13		37,435,860		168,202		168,532		330		—
HUF	UBS	01/22/13		9,006,470		41,000		40,708		—		292
IDR	JPM	01/02/13		1,325,886,000		137,000		137,576		576		—
IDR	JPM	01/03/13		1,568,850,000		161,737		162,786		1,049		—
IDR	JPM	01/28/13		2,371,924,000		244,000		245,398		1,398		—
IDR	JPM	02/07/13		1,568,850,000		160,021		162,119		2,098		—
ILS	BNP	01/23/13		1,846,575		487,886		494,017		6,131		—
ILS	UBS	01/07/13		836,270		223,315		223,854		539		—
INR	BRC	01/15/13		26,624,000		485,795		484,754		—		1,041
INR	BRC	02/15/13		11,510,000		207,015		208,310		1,295		—
INR	JPM	01/15/13		6,528,600		121,440		118,869		—		2,571
INR	JPM	03/11/13		16,703,620		302,000		301,003		—		997
INR	RBC	01/07/13		11,646,700		211,989		212,398		409		—
INR	SCB	03/18/13		8,044,600		145,000		144,787		—		213
KRW	HSB	01/28/13		39,852,000		36,697		37,165		468		—
KRW	JPM	02/13/13		681,006,400		622,521		634,485		11,964		—
KRW	UBS	03/14/13		292,070,250		271,000		271,683		683		—
KZT	CIT	02/01/13		95,287,500		630,000		631,062		1,062		—
MXN	BRC	01/10/13		4,450,000		341,331		344,048		2,717		—
MXN	JPM	01/31/13		2,547,439		199,000		196,590		—		2,410
MYR	JPM	01/10/13		2,006,505		658,000		655,830		—		2,170
MYR	JPM	02/19/13		1,134,654		368,000		369,827		1,827		—
MYR	SCB	01/07/13		931,257		305,821		304,446		—		1,375
NGN	CIT	02/11/13		101,569,650		637,000		644,577		7,577		—
NGN	HSB	01/03/13		19,515,500		119,874		124,979		5,105		—
NGN	HSB	03/04/13		19,515,500		121,820		122,245		425		—
NGN	JPM	04/09/13		11,154,000		66,691		69,387		2,696		—
PEN	HSB	01/28/13		620,372		239,000		242,674		3,674		—
PLN	JPM	01/17/13		1,110,870		352,339		358,381		6,042		—
RON	ING	01/11/13		418,692		123,000		124,094		1,094		—
RON	ING	01/11/13		487,011		139,273		144,342		5,069		—
RON	JPM	01/09/13		589,181		172,841		174,674		1,833		—
RON	JPM	01/22/13		986,040		290,499		291,786		1,287		—
RON	JPM	02/12/13		1,748,637		495,000		515,951		20,951		—
RSD	CIT	01/09/13		55,412,400		648,098		649,389		1,291		—
RSD	JPM	02/27/13		4,600,000		52,886		53,139		253		—
RSD	JPM	02/27/13		11,470,000		132,862		132,499		—		363
RUB	BRC	01/10/13		18,897,984		602,000		617,882		15,882		—
RUB	BRC	01/14/13		2,325,450		75,480		75,978		498		—

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

Annual Report  77

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2012 (continued):

Currency	Counterparty	Expiration Date	Foreign Currency Amount		U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts (concluded)
RUB	BRC	01/14/13		7,672,525	$	247,349	$	250,677	$	3,328	$	—
RUB	BRC	01/14/13		7,672,525		246,792		250,677		3,885		—
RUB	HSB	01/14/13		4,625,250		150,000		151,117		1,117		—
RUB	JPM	01/14/13		2,458,269		79,280		80,317		1,037		—
RUB	JPM	01/14/13		2,458,269		79,032		80,317		1,285		—
RUB	JPM	01/14/13		4,620,000		150,000		150,945		945		—
RUB	UBS	01/14/13		5,655,706		181,844		184,784		2,940		—
RUB	UBS	01/14/13		5,655,706		181,768		184,784		3,016		—
RUB	UBS	02/13/13		5,848,030		182,500		190,068		7,568		—
RUB	UBS	02/13/13		12,116,004		396,401		393,784		—		2,617
RUB	UBS	03/13/13		5,809,393		180,500		187,977		7,477		—
RUB	UBS	03/29/13		7,484,400		243,000		241,600		—		1,400
RUB	UBS	06/25/13		4,853,160		135,601		154,583		18,982		—
RUB	UBS	07/01/13		5,138,483		143,573		163,523		19,950		—
SGD	HSB	01/22/13		496,393		407,000		406,346		—		654
THB	HSB	01/31/13		13,404,090		435,000		437,485		2,485		—
THB	SCB	01/17/13		11,251,119		367,000		367,509		509		—
THB	SCB	01/18/13		5,497,354		178,500		179,557		1,057		—
THB	SCB	01/28/13		5,450,361		177,000		177,920		920		—
THB	SCB	02/19/13		5,488,875		178,726		178,952		226		—
TRY	JPM	01/10/13		400,000		224,404		223,986		—		418
TRY	JPM	02/28/13		137,543		75,000		76,523		1,523		—
TRY	JPM	02/28/13		360,679		197,303		200,668		3,365		—
TRY	JPM	02/28/13		803,085		439,000		446,806		7,806		—
TRY	JPM	02/28/13		919,457		499,000		511,551		12,551		—
UGX	CIT	01/07/13		1,229,265,000		463,000		456,325		—		6,675
UYU	HSB	01/09/13		7,002,270		363,000		363,830		830		—
UYU	HSB	04/03/13		1,939,500		90,000		98,989		8,989		—
UYU	JPM	04/09/13		847,200		40,000		43,183		3,183		—
ZAR	BRC	01/23/13		1,368,524		153,000		160,985		7,985		—
ZAR	CIT	01/28/13		4,019,839		468,000		472,544		4,544		—
ZMK	BRC	09/17/13		434,343,200		80,000		78,023		—		1,977
ZMK	BRC	12/17/13		290,000,000		50,000		50,717		717		—
ZMK	SCB	01/31/13		2,002,260,000		390,000		382,662		—		7,338
Total Forward Currency Purchase Contracts					$	29,364,943	$	29,725,536	$	400,123	$	39,530
Forward Currency Sale Contracts
BRL	BRC	01/03/13		211,166	$	103,335	$	103,133	$	202	$	—
BRL	BRC	01/03/13		300,000		146,234		146,520		—		286
BRL	BRC	01/03/13		483,018		228,000		235,906		—		7,906
BRL	BRC	01/03/13		1,245,900		600,000		608,498		—		8,498
BRL	HSB	01/03/13		93,810		45,694		45,817		—		123

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

78  Annual Report

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2012 (continued):

Currency	Counterparty	Expiration Date	Foreign Currency Amount		U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Sale Contracts (continued)
BRL	HSB	01/03/13		202,745	$	99,215	$	99,021	$	194	$	—
BRL	HSB	01/03/13		382,395		185,000		186,762		—		1,762
BRL	JPM	01/03/13		481,776		235,000		235,300		—		300
BRL	JPM	01/03/13		483,018		228,000		235,906		—		7,906
BRL	RBC	03/04/13		1,218,336		588,000		590,565		—		2,565
BRL	UBS	01/03/13		235,649		115,316		115,091		225		—
BRL	UBS	01/03/13		300,000		146,234		146,520		—		286
BRL	UBS	01/03/13		482,790		228,000		235,795		—		7,795
CLP	CIT	01/10/13		156,800,400		328,000		327,206		794		—
CNY	BRC	02/19/13		2,880,928		457,000		460,826		—		3,826
COP	CIT	01/08/13		290,526,000		164,000		164,360		—		360
COP	CIT	01/08/13		584,187,680		328,000		330,493		—		2,493
COP	UBS	01/24/13		106,849,360		60,088		60,379		—		291
CRC	CIT	03/27/13		27,523,000		51,218		53,314		—		2,096
CZK	JPM	01/07/13		8,013,443		421,827		421,589		238		—
CZK	JPM	01/08/13		1,823,712		96,000		95,947		53		—
CZK	JPM	01/10/13		23,743,462		1,225,153		1,249,177		—		24,024
EUR	BNP	01/08/13		192,000		246,215		253,441		—		7,226
EUR	BRC	03/25/13		80,000		106,369		105,673		696		—
EUR	CIT	01/09/13		488,000		648,098		644,169		3,929		—
EUR	HSB	02/28/13		326,106		420,793		430,654		—		9,861
EUR	ING	01/11/13		107,000		139,273		141,244		—		1,971
EUR	ING	01/22/13		378,263		482,199		499,370		—		17,171
EUR	JPM	01/07/13		317,000		413,935		418,439		—		4,504
EUR	JPM	01/14/13		23,599		31,232		31,152		80		—
EUR	JPM	01/22/13		220,000		290,499		290,436		63		—
EUR	JPM	02/27/13		40,000		52,885		52,823		62		—
EUR	JPM	02/27/13		100,000		132,862		132,058		804		—
EUR	JPM	02/27/13		126,000		168,202		166,393		1,809		—
EUR	UBS	01/07/13		107,537		140,597		141,948		—		1,351
EUR	UBS	02/28/13		91,860		122,000		121,310		690		—
EUR	UBS	02/28/13		93,234		120,316		123,124		—		2,808
HUF	CIT	01/07/13		12,570,050		58,303		56,919		1,384		—
HUF	JPM	01/04/13		51,604,090		239,573		233,754		5,819		—
IDR	JPM	01/02/13		1,325,886,000		135,779		137,575		—		1,796
IDR	JPM	01/03/13		1,568,850,000		160,661		162,786		—		2,125
IDR	JPM	02/04/13		881,070,000		89,878		91,081		—		1,203
ILS	UBS	01/07/13		836,270		218,000		223,854		—		5,854
ILS	UBS	01/23/13		1,246,000		332,506		333,344		—		838
INR	RBC	01/07/13		32,364,780		586,000		590,230		—		4,230
JPY	JPM	01/04/13		48,412,390		580,039		558,809		21,230		—
JPY	SCB	02/26/13		30,736,853		376,640		354,930		21,710		—

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

Annual Report  79

Lazard Emerging Markets Multi-Strategy Portfolio (continued)

Forward Currency Contracts open at December 31, 2012 (concluded):

Currency	Counterparty	Expiration Date	Foreign Currency Amount		U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Sale Contracts (concluded)
KRW	HSB	01/28/13		412,178,000	$	382,000	$	384,389	$	—	$	2,389
MXN	JPM	01/31/13		6,512,733		505,000		502,599		2,401		—
MYR	HSB	01/07/13		931,257		304,631		304,447		184		—
MYR	HSB	02/07/13		736,000		240,429		240,095		334		—
NGN	HSB	01/03/13		19,515,500		124,105		124,979		—		874
PEN	HSB	01/28/13		210,740		82,000		82,436		—		436
PLN	BRC	01/17/13		868,447		282,373		280,172		2,201		—
PLN	CIT	01/17/13		230,809		75,023		74,462		561		—
RON	JPM	02/12/13		1,361,796		401,000		401,810		—		810
RUB	JPM	01/14/13		10,478,800		340,000		342,364		—		2,364
RUB	UBS	01/10/13		6,781,980		218,000		221,741		—		3,741
RUB	UBS	01/10/13		12,116,004		398,684		396,141		2,543		—
RUB	UBS	02/13/13		13,912,875		447,000		452,184		—		5,184
SGD	HSB	01/22/13		205,128		168,000		167,917		83		—
THB	SCB	01/17/13		16,612,300		542,000		542,628		—		628
TRY	BRC	01/10/13		200,000		111,294		111,993		—		699
TRY	CIT	07/10/13		177,318		91,166		97,021		—		5,855
TRY	JPM	02/28/13		327,345		182,000		182,122		—		122
TRY	JPM	02/28/13		369,533		197,000		205,594		—		8,594
TRY	JPM	02/28/13		796,488		440,000		443,136		—		3,136
TRY	JPM	12/04/13		704,283		365,084		378,180		—		13,096
TRY	UBS	01/10/13		200,000		111,195		111,993		—		798
ZAR	BRC	01/23/13		2,698,800		312,000		317,471		—		5,471
Total Forward Currency Sale Contracts					$	18,692,152	$	18,809,515		68,289		185,652
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts									$	468,412	$	225,182

Written Option open at December 31, 2012:

Description	Number of Contracts		Strike Price		Expiration Date		Premium		Value
MXN vs JPY February 13 6.55 Call		100,000		6.55		02/01/13	$	5,293	$	26,458

Credit Default Swap Agreements open at December 31, 2012:

Referenced Obligation	Counterparty	Notional Amount	Expiration Date	Receive (Pay) Rate		Value			Upfront Premiums Paid (Received)			Unrealized Appreciation		Unrealized Depreciation
Federative Republic of Brazil	JPM	1,000,000	12/20/16	(1.00	%)	$	(5,481	)	$	27,128		$	—	$	32,609
People’s Republic of China	JPM	500,000	12/20/16	1.00	%		10,785			(11,277	)		22,062		—
Total Credit Default Swap Agreements						$	5,304		$	15,851		$	22,062	$	32,609

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

80  Annual Report

Lazard Emerging Markets Multi-Strategy Portfolio (concluded)

Interest Rate Swap Agreements open at December 31, 2012:

Currency	Counterparty	Notional Amount		Expiration Date	Receive (Pay) Rate			Variable Rate	Unrealized Appreciation		Unrealized Depreciation
BRL	BRC		591,000	01/04/16		8.18	%	Brazil Cetip Interbank Deposit Rate	$	83	$	—
BRL	BRC		538,000	01/02/17		8.34	%	Brazil Cetip Interbank Deposit Rate		—		376
BRL	BRC		216,000	01/02/17		8.35	%	Brazil Cetip Interbank Deposit Rate		—		213
BRL	BRC		347,001	01/02/17		8.80	%	Brazil Cetip Interbank Deposit Rate		3,294		—
BRL	JPM		692,001	01/02/17		8.90	%	Brazil Cetip Interbank Deposit Rate		7,891		—
ILS	BRC		900,000	08/13/17		2.81	%	Tel Aviv Interbank Offered Rate		4,785		—
ILS	JPM		1,000,000	09/03/17		2.87	%	Tel Aviv Interbank Offered Rate		5,903		—
MXN	BRC		20,000,000	11/30/17		5.22	%	Mexico Interbank TIIE 28 Day		—		6,086
USD	BRC		1,500,000	12/07/17		(0.74	%)	3 Month Libor		6,146		—
ZAR	JPM		5,000,000	09/11/17		5.68	%	South Africa Johannesburg Interbank Agreed Rate 3 Month		—		621
ZAR	BRC		2,000,000	09/12/17		5.81	%	South Africa Johannesburg Interbank Agreed Rate 3 Month		988		—
ZAR	BRC		1,640,000	10/16/17		5.78	%	South Africa Johannesburg Interbank Agreed Rate 3 Month		401		—
ZAR	BRC		1,000,000	11/01/17		6.06	%	South Africa Johannesburg Interbank Agreed Rate 3 Month		1,599		—
Total Interest Rate Swap Agreements										31,090		7,296
Gross unrealized appreciation/depreciation on Swap Agreements									$	53,152	$	39,905

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

Annual Report  81

Description	Security Currency		Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio
Corporate Bonds | 9.0%
Brazil | 1.6%
Arcos Dorados Holdings, Inc.:
10.250%, 07/13/16		BRL		250	$	129,792
10.250%, 07/13/16 (e)		BRL		1,500		778,755
Banco do Brasil SA, 9.250%, 04/15/23		USD		925		1,144,688
Companhia Energetica de Sao Paulo, 9.750%, 01/15/15		BRL		539		397,081
Odebrecht Finance, Ltd.:
7.125%, 06/26/42		USD		375		435,000
7.125%, 06/26/42 (e)		USD		750		870,000
Vale Overseas, Ltd., 8.250%, 01/17/34		USD		250		341,901
Vale SA, 5.625%, 09/11/42		USD		350		379,960
						4,477,177
Chile | 0.1%
Automotores Gildemeister SA, 8.250%, 05/24/21		USD		175		192,063
China | 0.1%
China Liansu Group Holdings Ltd., 7.875%, 05/13/16		USD		200		209,750
Colombia | 0.4%
Pacific Rubiales Energy Corp.:
7.250%, 12/12/21		USD		275		317,625
7.250%, 12/12/21 (e)		USD		831		959,805
						1,277,430
Georgia | 0.3%
Bank of Georgia JSC, 7.750%, 07/05/17		USD		775		786,625
Guatemala | 0.2%
Industrial Senior Trust, 5.500%, 11/01/22 (e)		USD		600		600,000
India | 0.3%
Vedanta Resources PLC:
9.500%, 07/18/18		USD		475		548,055
8.250%, 06/07/21		USD		275		303,187
						851,242

Description	Security Currency		Principal Amount (000)		Value
Indonesia | 1.0%
GT 2005 Bonds BV, 8.000%, 07/21/14 (g)		USD		350	$	351,750
PT Berau Coal Energy Tbk, 7.250%, 03/13/17		USD		450		443,250
PT Pertamina (Persero) Tbk:
5.250%, 05/23/21		USD		700		780,500
6.500%, 05/27/41		USD		1,050		1,244,250
						2,819,750
Kazakhstan | 0.5%
Halyk Savings Bank of Kazakhstan JSC, 7.250%, 05/03/17		USD		650		711,100
Zhaikmunai LP, 7.125%, 11/13/19 (e)		USD		695		728,012
						1,439,112
Mexico | 1.3%
America Movil SAB de CV, 6.450%, 12/05/22		MXN		13,000		1,033,999
Bio Pappel SAB de CV, 7.000%, 08/27/16 (g)		USD		525		488,250
Cemex SAB de CV, 9.500%, 06/15/18 (e)		USD		875		983,281
Mexichem SAB de CV, 6.750%, 09/19/42 (e)		USD		525		589,313
TV Azteca SAB de CV, 7.500%, 05/25/18		USD		750		806,250
						3,901,093
Nigeria | 0.3%
Afren PLC, 10.250%, 04/08/19		USD		700		817,130
Paraguay | 0.3%
Telefonica Celular del Paraguay SA, 6.750%, 12/13/22 (e)		USD		725		759,437
Peru | 0.3%
Corp. Azucarera del Peru SA, 6.375%, 08/02/22 (e)		USD		700		756,000
Russia | 1.8%
EuroChem Mineral & Chemical Co., 5.125%, 12/12/17 (e)		USD		550		563,750
Gazprom Neft OAO, 4.375%, 09/19/22 (e)		USD		625		639,063
Gazprom OAO, 8.625%, 04/28/34		USD		525		755,564

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

82  Annual Report

Description	Security Currency		Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Metalloinvest Finance, Ltd., 6.500%, 07/21/16		USD		450	$	473,063
MTS International Funding, Ltd., 8.625%, 06/22/20		USD		575		725,219
OJSC Novolipetsk Steel, 4.950%, 09/26/19 (e)		USD		325		328,539
Rosneft Oil Co., 4.199%, 03/06/22 (e)		USD		500		509,375
Russian Standard Bank, 7.730%, 12/16/15		USD		200		197,000
RZD Capital, Ltd., 8.300%, 04/02/19		RUB		6,000		203,727
Severstal OAO, 6.250%, 07/26/16		USD		425		453,050
TMK OAO, 7.750%, 01/27/18		USD		300		315,000
						5,163,350
South Africa | 0.2%
Sasol Financing International PLC, 4.500%, 11/14/22		USD		625		628,125
Turkey | 0.2%
Turkiye Is Bankasi AS, 6.000%, 10/24/22 (e)		USD		500		526,875
Ukraine | 0.1%
DTEK Finance BV, 9.500%, 04/28/15		USD		425		428,166
Total Corporate Bonds (Identified cost $24,661,702)						25,633,325
Foreign Government Obligations | 77.9%
Argentina | 0.9%
Republic of Argentina:
8.750%, 06/02/17		USD		300		265,500
8.280%, 12/31/33		USD		2,255		1,612,623
2.500%, 12/31/38 (g)		USD		1,625		583,375
						2,461,498
Belarus | 0.3%
Republic of Belarus:
8.750%, 08/03/15		USD		250		256,100
8.950%, 01/26/18		USD		525		540,750
						796,850

Description	Security Currency		Principal Amount (000)		Value
Colombia | 0.1%
Republic of Colombia:
7.750%, 04/14/21		COP		85,000	$	60,202
9.850%, 06/28/27		COP		160,000		138,785
						198,987
Dominican Republic | 0.3%
Dominican Republic:
16.000%, 02/07/14		DOP		6,000		161,067
11.700%, 06/06/14		DOP		24,500		631,313
						792,380
Egypt | 0.1%
Arab Republic of Egypt, 6.875%, 04/30/40		USD		200		189,000
El Salvador | 1.0%
Republic of El Salvador, 5.875%, 01/30/25 (e)		USD		2,750		2,767,188
Georgia | 0.7%
Republic of Georgia, 6.875%, 04/12/21		USD		1,675		1,934,625
Ghana | 0.3%
Ghana Government Bonds:
26.000%, 06/05/17		GHS		875		532,626
23.000%, 08/21/17		GHS		850		479,946
						1,012,572
Guatemala | 0.1%
Republic of Guatemala,
5.750%, 06/06/22 (e)		USD		246		271,215
Hungary | 4.2%
Hungary Government Bonds:
5.500%, 02/12/14		HUF		295,000		1,338,645
6.750%, 08/22/14		HUF		24,000		111,140
7.750%, 08/24/15		HUF		203,000		966,710
6.750%, 02/24/17		HUF		764,000		3,572,048
6.500%, 06/24/19		HUF		134,000		625,261
7.000%, 06/24/22		HUF		210,000		1,011,823
6.750%, 10/22/28		HUF		205,000		977,377
Republic of Hungary:
4.750%, 02/03/15		USD		950		978,500
6.250%, 01/29/20		USD		825		910,594
6.375%, 03/29/21		USD		500		552,000
7.625%, 03/29/41		USD		864		997,920
						12,042,018

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

Annual Report  83

Description	Security Currency		Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Indonesia | 4.2%
Indonesia Government Bonds:
7.000%, 05/15/22		IDR		10,840,000	$	1,274,841
5.625%, 05/15/23		IDR		4,200,000		451,461
8.375%, 09/15/26		IDR		6,405,000		819,945
7.000%, 05/15/27		IDR		15,570,000		1,784,187
6.125%, 05/15/28		IDR		21,830,000		2,341,179
8.250%, 06/15/32		IDR		11,500,000		1,457,821
6.625%, 05/15/33		IDR		5,500,000		601,796
Republic of Indonesia:
6.875%, 01/17/18		USD		1,425		1,740,281
6.625%, 02/17/37		USD		700		936,250
5.250%, 01/17/42		USD		575		667,719
						12,075,480
Iraq | 2.4%
Republic of Iraq,
5.800%, 01/15/28		USD		7,200		6,804,000
Ivory Coast | 3.9%
Ivory Coast,
3.750%, 12/31/32 (g)		USD		12,100		11,283,250
Lebanon | 0.5%
Lebanese Republic:
9.000%, 03/20/17		USD		825		957,000
6.100%, 10/04/22		USD		600		606,000
						1,563,000
Lithuania | 1.2%
Republic of Lithuania:
5.125%, 09/14/17		USD		550		620,125
7.375%, 02/11/20		USD		300		390,750
6.125%, 03/09/21		USD		200		246,260
6.625%, 02/01/22		USD		350		447,580
6.625%, 02/01/22 (e)		USD		1,475		1,886,230
						3,590,945

Description	Security Currency		Principal Amount (000)		Value
Malaysia | 6.6%
Bank Negara Monetary Notes:
0.000%, 01/22/13		MYR		6,080	$	1,984,931
0.000%, 02/26/13		MYR		4,250		1,383,468
0.000%, 02/28/13		MYR		3,000		976,048
0.000%, 03/05/13		MYR		2,500		813,332
0.000%, 03/28/13		MYR		1,900		617,032
0.000%, 04/02/13		MYR		3,950		1,282,336
Malaysian Government Bonds:
3.702%, 02/25/13		MYR		300		98,192
3.434%, 08/15/14		MYR		760		250,070
3.741%, 02/27/15		MYR		2,070		686,802
3.835%, 08/12/15		MYR		6,500		2,167,678
4.262%, 09/15/16		MYR		8,000		2,718,943
3.580%, 09/28/18		MYR		6,700		2,219,551
4.378%, 11/29/19		MYR		5,890		2,039,398
4.160%, 07/15/21		MYR		1,660		567,148
3.418%, 08/15/22		MYR		1,470		477,689
4.392%, 04/15/26		MYR		2,325		819,623
						19,102,241
Mexico | 9.6%
Mexican Bonos:
6.000%, 06/18/15		MXN		35,500		2,821,108
7.750%, 12/14/17		MXN		19,500		1,679,173
8.500%, 12/13/18		MXN		6,000		543,134
7.500%, 06/03/27		MXN		9,500		855,020
8.500%, 05/31/29		MXN		44,800		4,362,048
7.750%, 05/29/31		MXN		7,500		679,376
10.000%, 11/20/36		MXN		7,620		852,092
8.500%, 11/18/38		MXN		14,000		1,368,668
7.750%, 11/13/42		MXN		3,400		309,229
Mexican Cetes:
0.000%, 01/10/13		MXN		307,500		2,376,302
0.000%, 01/17/13		MXN		390,000		3,010,769
0.000%, 01/31/13		MXN		8,000		61,660
0.000%, 02/21/13		MXN		200,000		1,538,538
0.000%, 04/04/13		MXN		690,000		5,279,183
Mexican Udibonos,
2.500%, 12/10/20		MXN		21,351		1,799,376
						27,535,676
Namibia | 0.1%
Republic of Namibia,
5.500%, 11/03/21 (e)		USD		200		224,000

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

84  Annual Report

Description	Security Currency		Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Nigeria | 2.1%
Nigeria Treasury Bills:
0.000%, 02/07/13		NGN		124,000	$	783,396
0.000%, 03/07/13		NGN		37,000		231,663
0.000%, 03/28/13		NGN		52,000		323,059
0.000%, 04/11/13		NGN		82,425		509,277
0.000%, 05/09/13		NGN		37,000		227,289
0.000%, 09/05/13		NGN		90,000		531,003
0.000%, 10/10/13		NGN		147,000		858,117
Nigeria Treasury Bonds:
15.100%, 04/27/17		NGN		36,000		254,363
16.000%, 06/29/19		NGN		117,000		879,879
16.390%, 01/27/22		NGN		70,000		554,979
Republic of Nigeria,
6.750%, 01/28/21		USD		825		975,562
						6,128,587
Peru | 0.9%
Republic of Peru:
7.840%, 08/12/20		PEN		3,045		1,503,473
8.200%, 08/12/26		PEN		830		455,760
6.950%, 08/12/31 (e)		PEN		1,077		530,757
						2,489,990
Philippines | 1.8%
Republic of Philippines:
6.375%, 01/15/32		USD		2,175		2,979,750
6.250%, 01/14/36		PHP		30,000		876,712
5.000%, 01/13/37		USD		975		1,185,844
						5,042,306
Poland | 3.7%
Poland Government Bonds:
0.000%, 01/25/14		PLN		7,250		2,268,121
5.500%, 04/25/15		PLN		400		136,020
5.250%, 10/25/17		PLN		4,125		1,452,783
5.500%, 10/25/19		PLN		10,727		3,919,931
2.750%, 08/25/23		PLN		8,077		2,961,956
						10,738,811
Romania | 2.0%
Romania Government Bonds:
5.750%, 01/27/16		RON		1,000		292,624
6.750%, 06/11/17		RON		2,600		785,587
5.900%, 07/26/17		RON		3,400		994,641
6.750%, 02/07/22		USD		2,276		2,765,340
6.750%, 02/07/22 (e)		USD		760		923,400
						5,761,592

Description	Security Currency		Principal Amount (000)		Value
Russia | 4.3%
Russia Foreign Bonds:
7.850%, 03/10/18		RUB		100,000	$	3,567,688
7.850%, 03/10/18 (e)		RUB		5,000		178,384
5.000%, 04/29/20		USD		500		590,000
7.500%, 03/31/30 (g)		USD		2,837		3,643,200
Russian Federation:
3.250%, 04/04/17		USD		800		850,000
3.250%, 04/04/17 (e)		USD		1,800		1,912,500
5.625%, 04/04/42		USD		800		994,000
5.625%, 04/04/42 (e)		USD		200		248,500
Russian Government Bond - OFZ,
7.600%, 07/20/22		RUB		14,500		501,416
						12,485,688
Senegal | 0.4%
Republic of Senegal,
8.750%, 05/13/21		USD		875		1,036,875
Serbia | 0.4%
Republic of Serbia,
5.250%, 11/21/17 (e)		USD		400		415,000
Serbia Treasury Bill,
0.000%, 01/03/14		RSD		80,000		837,641
						1,252,641
Slovenia | 1.0%
Republic of Slovenia,
5.500%, 10/26/22 (e)		USD		2,875		3,022,143
South Africa | 4.9%
Eskom Holdings, Ltd.,
7.850%, 04/02/26		ZAR		9,000		1,060,569
Republic of South Africa:
13.500%, 09/15/15		ZAR		11,450		1,624,509
8.250%, 09/15/17		ZAR		26,440		3,430,732
8.000%, 12/21/18		ZAR		6,500		841,858
7.250%, 01/15/20		ZAR		14,400		1,791,244
6.750%, 03/31/21		ZAR		8,050		971,802
10.500%, 12/21/26		ZAR		20,635		3,117,787
7.000%, 02/28/31		ZAR		11,400		1,245,801
						14,084,302

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

Annual Report  85

Description	Security Currency		Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Thailand | 4.3%
Bank of Thailand:
0.000%, 01/10/13		THB		5,000	$	163,367
0.000%, 01/24/13		THB		1,000		32,639
3.050%, 02/17/13		THB		94,000		3,073,834
0.000%, 02/28/13		THB		48,000		1,562,570
3.420%, 08/18/13		THB		13,400		439,790
Thailand Government Bonds:
4.250%, 03/13/13		THB		4,000		131,117
3.625%, 05/22/15		THB		26,400		876,517
3.125%, 12/11/15		THB		90,000		2,955,057
3.250%, 06/16/17		THB		30,000		986,724
1.200%, 07/14/21		THB		61,027		2,026,800
3.580%, 12/17/27		THB		3,200		101,330
						12,349,745
Turkey | 9.8%
Republic of Turkey:
7.000%, 09/26/16		USD		1,225		1,434,781
5.125%, 03/25/22		USD		1,850		2,127,500
6.875%, 03/17/36		USD		2,475		3,341,250
Turkey Government Bonds:
0.000%, 05/15/13		TRY		1,400		767,086
0.000%, 07/17/13		TRY		5,040		2,732,497
9.000%, 03/05/14		TRY		860		497,744
4.500%, 02/11/15		TRY		2,623		1,591,688
4.000%, 04/29/15		TRY		957		577,715
9.000%, 01/27/16		TRY		8,566		5,176,237
9.000%, 03/08/17		TRY		9,300		5,713,613
10.500%, 01/15/20		TRY		2,060		1,412,364
4.000%, 04/01/20		TRY		1,877		1,260,291
3.000%, 07/21/21		TRY		2,640		1,694,681
						28,327,447
Ukraine | 2.0%
Ukraine Government Bonds:
6.875%, 09/23/15		USD		675		681,750
6.580%, 11/21/16		USD		1,625		1,623,050
9.250%, 07/24/17 (e)		USD		1,325		1,437,625
7.750%, 09/23/20		USD		1,250		1,284,375
7.950%, 02/23/21		USD		350		362,250
7.800%, 11/28/22 (e)		USD		375		377,344
						5,766,394

Description	Security Currency		Principal Amount (000)		Value
Uruguay | 0.9%
Republic Orient Uruguay, 5.000%, 09/14/18		UYU		18,091	$	1,082,600
Uruguay Monetary Regulation Bills:
0.000%, 09/09/13		UYU		11,000		541,086
0.000%, 09/09/13		UYU		1,300		63,815
0.000%, 09/09/13		UYU		4,450		218,728
0.000%, 10/18/13		UYU		12,000		582,316
						2,488,545
Venezuela | 2.5%
Republic of Venezuela:
7.000%, 12/01/18		USD		225		209,813
9.000%, 05/07/23		USD		730		708,100
8.250%, 10/13/24		USD		3,535		3,252,200
7.650%, 04/21/25		USD		1,076		946,880
9.250%, 05/07/28		USD		1,414		1,392,888
7.000%, 03/31/38		USD		685		548,000
						7,057,881
Zambia | 0.4%
Republic of Zambia, 5.375%, 09/20/22 (e)		USD		1,075		1,070,969
Total Foreign Government Obligations (Identified cost $210,292,144)						223,748,841
Quasi Government Bonds | 8.3%
Angola | 3.6%
Northern Lights III BV, 7.000%, 08/16/19		USD		9,500		10,509,375
Colombia | 0.6%
Emgesa SA ESP:
8.750%, 01/25/21		COP		1,000,000		663,045
8.750%, 01/25/21 (e)		COP		150,000		99,457
Empresas Publicas de Medellin ESP:
8.375%, 02/01/21		COP		1,260,000		823,670
8.375%, 02/01/21 (e)		COP		150,000		98,056
						1,684,228
Kazakhstan | 0.9%
Development Bank of Kazakhstan JSC, 4.125%, 12/10/22 (e)		USD		2,600		2,620,046

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

86  Annual Report

Description	Security Currency		Principal Amount (000)		Value
Lazard Emerging Markets Debt Portfolio (continued)
Russia | 1.0%
Russian Agricultural Bank OJSC:
7.500%, 03/25/13		RUB		44,500	$	1,453,445
8.700%, 03/17/16		RUB		15,000		498,282
8.625%, 02/17/17		RUB		14,000		466,254
8.625%, 02/17/17 (e)		RUB		11,600		386,325
						2,804,306
South Africa | 0.1%
Transnet, Ltd., 10.500%, 09/17/20		ZAR		3,000		417,128
South Korea | 0.2%
Export-Import Bank of Korea, 6.600%, 11/04/13		IDR		6,700,000		701,503
Venezuela | 1.9%
Petroleos de Venezuela SA, 5.250%, 04/12/17		USD		6,120		5,339,700
Total Quasi Government Bonds (Identified cost $23,414,195)						24,076,286
Supranationals | 0.5%
European Bank for Reconstruction & Development:
6.750%, 02/19/13		IDR		5,100,000		530,178
7.200%, 06/08/16		IDR		1,500,000		167,321
Inter-American Development Bank, 0.000%, 08/20/15		IDR		7,000,000		628,848
Total Supranationals (Identified cost $1,435,511)						1,326,347

Description	Shares		Value
Short-Term Investment | 0.3%
State Street Institutional Treasury Money Market Fund (Identified cost $945,135)		945,135	$	945,135
Total Investments | 96.0% (Identified cost $260,748,687) (b), (f)				275,729,934

Description	Number of Contracts		Value
Purchased Options | 0.5%
MXN vs JPY February 13 6.35 Call, Expires 02/01/13		1,100,000	$	502,077
USD vs BRL February 13 2.05 Put, Expires 02/07/13		43,500		41,760
USD vs BRL February 13 2.05 Put, Expires 02/08/13		43,500		42,630
USD vs CLP February 13 470.00 Put, Expires 02/11/13		174,000		40,020
USD vs CLP February 13 475.00 Put, Expires 02/21/13		44,000		24,200
USD vs INR January 13 55.00 Put, Expires 01/31/13		75,000		84,000
USD vs INR February 13 55.00 Put, Expires 02/01/13		37,500		42,375
USD vs INR February 13 55.00 Put, Expires 02/15/13		87,000		107,880
USD vs MXN January 13 12.50 Put, Expires 01/10/13		90,000		5,400
USD vs MXN January 13 12.95 Put, Expires 01/18/13		100,000		128,000
USD vs MXN January 13 12.50 Put, Expires 01/24/13		45,000		6,300
USD vs MXN January 13 12.50 Put, Expires 01/25/13		78,000		11,700
USD vs MXN February 13 12.50 Put, Expires 02/01/13		72,000		14,400
USD vs MXN February 13 12.75 Put, Expires 02/11/13		87,000		71,340
USD vs PLN February 13 3.10 Put, Expires 02/12/13		43,500		63,075
USD vs PLN February 13 3.10 Put, Expires 02/15/13		43,500	$	65,250
USD vs SGD January 18 1.22 Put, Expires 01/18/13		260,000		44,200
USD vs SGD February 13 1.22 Put, Expires 02/19/13		260,000		96,200
Total Purchased Options (Identified cost $1,257,174)				1,390,807
Total Investments and Purchased Options | 96.5% (Identified cost $262,005,861)			$	277,120,741
Cash and Other Assets in Excess of Liabilities | 3.5%				10,180,132
Net Assets | 100.0%			$	287,300,873

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

Annual Report  87

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at December 31, 2012:

Currency	Counterparty	Expiration Date	Foreign Currency Amount		U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts
BRL	BRC	01/03/13		3,280,620	$	1,573,854	$	1,602,256	$	28,402	$	—
BRL	BRC	01/03/13		3,280,620		1,562,795		1,602,256		39,461		—
BRL	BRC	01/03/13		4,374,159		2,073,749		2,136,341		62,592		—
BRL	BRC	02/04/13		3,600,000		1,747,318		1,750,845		3,527		—
BRL	BRC	02/04/13		4,300,000		2,085,051		2,091,287		6,236		—
BRL	HSB	01/03/13		3,280,620		1,562,423		1,602,256		39,833		—
BRL	HSB	01/03/13		4,374,159		2,073,258		2,136,342		63,084		—
BRL	HSB	01/03/13		5,066,487		2,479,318		2,474,474		—		4,844
BRL	HSB	02/04/13		4,300,000		2,085,152		2,091,287		6,135		—
BRL	HSB	02/04/13		8,421,266		4,083,038		4,095,648		12,610		—
BRL	JPM	01/03/13		2,862,094		1,400,584		1,397,848		—		2,736
BRL	SSB	01/03/13		3,280,620		1,569,487		1,602,256		32,769		—
BRL	UBS	01/03/13		3,280,620		1,563,465		1,602,256		38,791		—
BRL	UBS	01/03/13		3,280,620		1,573,439		1,602,257		28,818		—
BRL	UBS	01/03/13		4,374,159		2,073,258		2,136,342		63,084		—
BRL	UBS	02/04/13		3,600,000		1,747,318		1,750,845		3,527		—
CLP	HSB	01/22/13		714,225,000		1,500,000		1,487,978		—		12,022
CRC	CIT	03/27/13		264,220,800		480,000		511,812		31,812		—
HUF	BRC	01/07/13		40,945,000		184,524		185,403		879		—
JPY	BRC	01/04/13		448,700,200		5,210,797		5,179,202		—		31,595
NGN	JPM	03/14/13		73,000,000		452,994		457,270		4,276		—
PLN	BRC	01/18/13		8,469,666		2,721,614		2,732,136		10,522		—
PLN	JPM	01/18/13		2,441,790		785,344		787,671		2,327		—
RUB	BRC	01/14/13		45,058,045		1,461,500		1,472,141		10,641		—
RUB	BRC	01/14/13		59,308,060		1,907,686		1,937,718		30,032		—
RUB	BRC	01/14/13		59,308,060		1,911,991		1,937,718		25,727		—
RUB	JPM	01/09/13		93,337,500		3,000,000		3,052,282		52,282		—
RUB	JPM	01/14/13		45,014,200		1,461,500		1,470,708		9,208		—
RUB	JPM	01/14/13		66,966,488		2,152,917		2,187,935		35,018		—
RUB	JPM	01/14/13		66,966,488		2,159,687		2,187,935		28,248		—
RUB	JPM	01/14/13		93,337,500		3,023,370		3,049,531		26,161		—
RUB	UBS	01/14/13		20,291,673		652,150		662,971		10,821		—
RUB	UBS	01/14/13		20,291,673		652,423		662,971		10,548		—
UYU	JPM	04/09/13		9,531,000		450,000		485,805		35,805		—
ZMK	BRC	06/21/13		1,808,400,000		330,000		332,653		2,653		—
ZMK	BRC	09/17/13		3,637,624,300		670,000		653,441		—		16,559
ZMK	BRC	12/17/13		2,900,000,000		500,000		507,173		7,173		—
Total Forward Currency Purchase Contracts					$	62,922,004	$	63,617,250	$	763,002	$	67,756

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

88  Annual Report

Lazard Emerging Markets Debt Portfolio (continued)

Forward Currency Contracts open at December 31, 2012 (concluded):

Currency	Counterparty	Expiration Date	Foreign Currency Amount		U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Sale Contracts
BRL	BRC	01/03/13		173,305	$	84,808	$	84,642	$	166	$	—
BRL	BRC	01/03/13		2,862,094		1,351,000		1,397,848		—		46,848
BRL	BRC	01/03/13		3,600,000		1,754,814		1,758,242		—		3,428
BRL	BRC	01/03/13		4,300,000		2,093,476		2,100,122		—		6,646
BRL	HSB	01/03/13		4,300,000		2,093,476		2,100,122		—		6,646
BRL	HSB	01/03/13		8,421,266		4,097,939		4,112,950		—		15,011
BRL	JPM	01/03/13		2,862,094		1,351,000		1,397,848		—		46,848
BRL	UBS	01/03/13		2,860,743		1,351,000		1,397,188		—		46,188
BRL	UBS	01/03/13		3,600,000		1,754,814		1,758,242		—		3,428
BRL	UBS	01/03/13		4,474,656		2,189,702		2,185,424		4,278		—
CRC	CIT	03/27/13		264,220,800		491,693		511,812		—		20,119
EUR	JPM	01/14/13		629,296		832,857		830,717		2,140		—
HUF	JPM	01/07/13		94,516,145		435,960		427,980		7,980		—
HUF	JPM	01/07/13		298,182,319		1,374,682		1,350,203		24,479		—
JPY	JPM	01/04/13		448,700,200		5,375,973		5,179,203		196,770		—
PLN	BRC	01/18/13		6,172,600		2,000,000		1,991,151		8,849		—
RUB	JPM	01/09/13		93,337,500		3,025,527		3,052,282		—		26,755
TRY	BRC	01/10/13		7,066,601		3,932,334		3,957,043		—		24,709
TRY	UBS	01/10/13		7,066,601		3,928,836		3,957,043		—		28,207
ZAR	JPM	01/18/13		35,173,839		4,061,644		4,140,496		—		78,852
Total Forward Currency Sale Contracts					$	43,581,535	$	43,690,558		244,662		353,685
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts									$	1,007,664	$	421,441

Written Option open at December 31, 2012:
Description	Number of Contracts		Strike Price		Expiration Date		Premium		Value
MXN vs JPY February 13 6.55 Call		1,100,000		6.55		02/01/13	$	58,223	$	291,035

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

Annual Report  89

Lazard Emerging Markets Debt Portfolio (concluded)

Interest Rate Swap Agreements open at December 31, 2012:

Currency	Counterparty	Notional Amount		Expiration Date	Receive (Pay) Rate			Variable Rate	Unrealized Appreciation		Unrealized Depreciation
BRL	BRC		2,955,711	01/04/16		8.18	%	Brazil Cetip Interbank Deposit Rate	$	416	$	—
BRL	BRC		2,047,641	01/02/17		(1.00	%)	Brazil Cetip Interbank Deposit Rate		26,741		—
BRL	BRC		2,898,000	01/02/17		8.33	%	Brazil Cetip Interbank Deposit Rate		—		4,693
BRL	BRC		3,583,753	01/02/17		8.34	%	Brazil Cetip Interbank Deposit Rate		—		2,506
BRL	BRC		951,237	01/04/21		9.24	%	Brazil Cetip Interbank Deposit Rate		7,209		—
BRL	JPM		2,203,000	01/02/17		7.83	%	Brazil Cetip Interbank Deposit Rate		29,715		—
BRL	JPM		1,189,001	01/04/21		7.83	%	Brazil Cetip Interbank Deposit Rate		20,178		—
MXN	BRC		93,000,000	12/15/17		5.35	%	Mexico Interbank TIIE 28 Day		12,053		—
RUB	BRC		60,000,000	01/17/17		8.23	%	MosPrime 3 Months Rate		59,212		—
USD	BRC		6,600,000	12/24/17		(0.89	%)	3 Month Libor		—		16,382
ZAR	BRC		15,200,000	10/16/17		5.78	%	South Africa Johannesburg Interbank Agreed Rate 3 Month		3,721		—
Gross unrealized appreciation/depreciation on Swap Agreements									$	159,245	$	23,581

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

90  Annual Report

Description	Shares		Value
Lazard U.S. Realty Income Portfolio
Common Stocks | 5.9%
Real Estate | 5.9%
Colony Financial, Inc.		164,015	$	3,198,293
Starwood Property Trust, Inc.		135,936		3,121,091
Total Common Stocks (Identified cost $5,366,362)				6,319,384
Preferred Stocks | 30.9%
Real Estate | 30.9%
Apollo Commercial Real Estate Finance, Inc., Series A, 8.625%		60,000		1,569,000
Ashford Hospitality Trust, Inc.:
Series A, 8.550%		35,163		887,162
Series D, 8.450%		61,782		1,553,817
CapLease, Inc., Series A, 8.125%		34,755		869,918
CBL & Associates Properties, Inc., Series E, 6.625%		60,000		1,497,600
Cedar Realty Trust, Inc., Series B, 7.250%		34,404		841,178
CommonWealth REIT, Series E, 7.250%		38,100		960,882
Coresite Realty Corp., Series A, 7.250%		50,000		1,260,500
DDR Corp. Series J, 6.500%		16,900		413,374
DuPont Fabros Technology, Inc., Series B, 7.625%		13,060		348,310
EPR Properties, Series F, 6.625%		38,333		942,992
First Industrial Realty Trust, Inc., Series K, 7.250%		58,630		1,465,750
First Potomac Realty Trust, Series A, 7.750%		8,710		223,586
Glimcher Realty Trust, Series G, 8.125%		72,826		1,833,030
Description	Shares		Value
Hersha Hospitality Trust, Series B, 8.000%		43,018	$	1,081,903
Kilroy Realty Corp., Series H, 6.375%		16,900		424,021
Kimco Realty Corp., Series J, 5.500%		17,000		422,450
Kite Realty Group Trust, Series A, 8.250%		40,530		1,039,594
NorthStar Realty Finance Corp., Series A, 8.750%		72,886		1,792,996
Parkway Properties, Inc., Series D, 8.000%		32,606		815,476
Pennsylvania Real Estate Investment Trust:
Series A, 8.250%		60,000		1,576,800
Series B, 7.375%		33,694		852,795
Prologis, Inc., Series R, 6.750%		18,800		474,700
PS Business Parks, Inc., Series U, 5.750%		16,900		422,500
Retail Properties of America, Inc., 7.000%		60,000		1,479,000
STAG Industrial, Inc., Series A, 9.000%		3,800		101,688
Strategic Hotels & Resorts, Inc., Series C, 8.250%		37,800		921,942
Sun Communities, Inc., Series A, 7.125%		85,000		2,127,550
Sunstone Hotel Investors, Inc., Series A, 8.000%		91,406		2,267,783
Vornado Realty Trust, Series K, 5.700%		21,864		558,188
Weingarten Realty Investors, Series F, 6.500%		38,000		948,480
Winthrop Realty Trust:
7.750%		25,000		646,250
Series D, 9.250%		20,000		528,800
Total Preferred Stocks (Identified cost $32,382,485)				33,150,015

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

Annual Report  91

Description	Shares		Value
Lazard U.S. Realty Income Portfolio (concluded)
Real Estate Investment Trusts | 54.5%
Agree Realty Corp.		53,911	$	1,444,276
Apollo Commercial Real Estate Finance, Inc.		260,010		4,219,962
Associated Estates Realty Corp.		282,135		4,548,016
Campus Crest Communities, Inc.		343,690		4,213,639
CommonWealth REIT		232,152		3,677,288
Digital Realty Trust, Inc.		55,400		3,761,106
Dynex Capital, Inc.		339,720		3,206,957
EPR Properties		82,055		3,783,556
First Potomac Realty Trust		247,826		3,063,129
Hersha Hospitality Trust		543,000		2,715,000
Highwoods Properties, Inc.		75,500		2,525,475
Kite Realty Group Trust		154,289		862,475
LTC Properties, Inc.		40,200		1,414,638
Medical Properties Trust, Inc.		206,241		2,466,642
Mission West Properties, Inc.		64,500		587,595
Plum Creek Timber Co., Inc.		59,450		2,637,796
Realty Income Corp.		23,300		936,893
Sabra Health Care REIT, Inc.		65,469		1,421,987
Select Income REIT		24,500		606,865
Description	Shares		Value
Silver Bay Realty Trust Corp.		75,000	$	1,412,250
Spirit Realty Capital, Inc.		60,000		1,066,800
STAG Industrial, Inc.		131,980		2,371,681
Sun Communities, Inc.		100,357		4,003,241
Whitestone REIT		98,675		1,386,384
Winthrop Realty Trust		22,880		252,824
Total Real Estate Investment Trusts (Identified cost $54,723,975)				58,586,475
Short-Term Investment | 6.6%
State Street Institutional Treasury Money Market Fund (Identified cost $7,119,345)		7,119,345		7,119,345
Total Investments | 97.9%
(Identified cost $99,592,167) (b)			$	105,175,219
Cash and Other Assets in Excess of Liabilities | 2.1%				2,242,303
Net Assets | 100.0%			$	107,417,522

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

92  Annual Report

Description	Shares		Value
Lazard U.S. Realty Equity Portfolio
Common Stocks | 7.7%
Leisure & Entertainment | 4.2%
Marriott International, Inc., Class A		13,258	$	494,126
Starwood Hotels & Resorts Worldwide, Inc.		41,986		2,408,317
				2,902,443
Real Estate | 3.5%
Colony Financial, Inc.		70,812		1,380,834
Jones Lang LaSalle, Inc.		11,200		940,128
				2,320,962
Total Common Stocks (Identified cost $4,748,737)				5,223,405
Real Estate Investment Trusts | 88.4%
American Tower Corp.		60,196		4,651,345
Apartment Investment & Management Co., Class A		72,744		1,968,453
Associated Estates Realty Corp.		126,696		2,042,340
AvalonBay Communities, Inc.		10,707		1,451,762
Boston Properties, Inc.		20,744		2,194,923
Cedar Realty Trust, Inc.		105,847		558,872
DDR Corp.		62,438		977,779
Digital Realty Trust, Inc.		52,667		3,575,563
Douglas Emmett, Inc.		17,101		398,453
Equity Lifestyle Properties, Inc.		33,455		2,251,187
Equity Residential		42,508		2,408,928
Essex Property Trust, Inc.		21,563		3,162,214
Extra Space Storage, Inc.		13,900		505,821
First Potomac Realty Trust		103,178		1,275,280
Description	Shares		Value
General Growth Properties, Inc.		114,738	$	2,277,549
HCP, Inc.		45,300		2,046,654
Health Care REIT, Inc.		29,900		1,832,571
Pebblebrook Hotel Trust		79,079		1,826,725
Plum Creek Timber Co., Inc.		20,000		887,400
Prologis, Inc.		37,292		1,360,785
Public Storage		19,449		2,819,327
Rayonier, Inc.		23,400		1,212,822
Retail Opportunity Investments Corp.		152,284		1,958,372
Silver Bay Realty Trust Corp.		51,000		960,330
Simon Property Group, Inc.		40,007		6,324,707
SL Green Realty Corp.		26,928		2,064,031
Sunstone Hotel Investors, Inc. (a)		63,019		674,933
The Macerich Co.		31,000		1,807,300
Ventas, Inc.		39,624		2,564,465
Weyerhaeuser Co.		82,300		2,289,586
Total Real Estate Investment Trusts (Identified cost $58,319,779)				60,330,477
Short-Term Investment | 3.0%
State Street Institutional Treasury Money Market Fund (Identified cost $2,013,852)		2,013,852		2,013,852
Total Investments | 99.1%
(Identified cost $65,082,368) (b)			$	67,567,734
Cash and Other Assets in Excess of Liabilities | 0.9%				613,650
Net Assets | 100.0%			$	68,181,384

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

Annual Report  93

Description	Shares		Value
Lazard International Realty Equity Portfolio
Common Stocks | 62.2%
Australia | 2.4%
Goodman Group		26,717	$	121,546
Brazil | 6.5%
Aliansce Shopping Centers SA		5,900		71,133
BR Properties SA		6,100		75,952
Gafisa SA (a)		20,400		47,605
Multiplan Empreendimentos Imobiliarios SA		2,300		67,882
PDG Realty SA Empreendimentos e Participacoes		25,500		42,156
Rossi Residencial SA		9,300		21,081
				325,809
Canada | 0.9%
First Capital Realty, Inc.		2,500		47,300
China | 8.9%
China Overseas Land & Investment, Ltd.		56,000		169,633
Longfor Properties Co., Ltd.		85,000		168,550
Shimao Property Holdings, Ltd.		10,000		19,308
Shui On Land, Ltd.		67,500		32,812
Soho China, Ltd.		65,000		52,507
				442,810
Hong Kong | 15.8%
Cheung Kong Holdings, Ltd.		13,000		201,225
Great Eagle Holdings, Ltd.		23,373		77,982
Sun Hung Kai Properties, Ltd.		14,000		212,032
The Wharf Holdings, Ltd.		38,000		300,917
				792,156
Japan | 16.8%
Daito Trust Construction Co., Ltd.		400		37,641
Mitsubishi Estate Co., Ltd.		13,000		310,782
Mitsui Fudosan Co., Ltd.		12,000		293,173
Sumitomo Realty & Development Co., Ltd.		6,000		199,363
				840,959
Luxembourg | 2.7%
GAGFAH SA (a)		11,533		134,952
Norway | 2.0%
Norwegian Property ASA		66,100		101,820
Description	Shares		Value
Singapore | 2.5%
CapitaLand, Ltd.		40,000	$	122,712
United Kingdom | 1.5%
Capital & Counties Properties PLC		18,391		72,480
United States | 2.2%
Starwood Hotels & Resorts Worldwide, Inc.		1,880		107,837
Total Common Stocks (Identified cost $2,462,642)				3,110,381
Open-End Management Investment Company | 1.7%
Canada | 1.7%
Calloway Real Estate Investment Trust (Identified cost $84,026)		2,900		84,402
Real Estate Investment Trusts | 35.4%
Australia | 10.2%
Investa Office Fund		26,503		82,618
Westfield Group REIT		31,374		346,192
Westfield Retail Trust		26,580		83,655
				512,465
Brazil | 0.4%
Cyrela Commercial Properties SA Empreendimentos e Participacoes		1,800		21,845
Canada | 3.3%
Allied Properties Real Estate Investment Trust		2,200		72,987
Boardwalk Real Estate Investment Trust		1,404		91,083
				164,070
France | 6.4%
Fonciere des Regions		1,351		113,226
Unibail-Rodamco SE		836		204,659
				317,885
Italy | 2.8%
Beni Stabili SpA		239,182		141,323
Japan | 2.2%
Japan Logistics Fund, Inc.		5		43,404
Japan Retail Fund Investment Corp.		20		36,686
Nippon Building Fund, Inc.		3		30,931
				111,021

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

94  Annual Report

Description	Shares		Value
Lazard International Realty Equity Portfolio (concluded)
Singapore | 3.6%
CDL Hospitality Trusts		45,000	$	69,550
Frasers Centrepoint Trust		68,000		111,290
				180,840
United Kingdom | 6.5%
British Land Co. PLC		6,724		62,512
Derwent London PLC		2,621		90,113
Hammerson PLC		5,837		47,029
SEGRO PLC		30,509		125,098
				324,752
Total Real Estate Investment Trusts (Identified cost $1,513,154)				1,774,201
Description	Shares		Value
Short-Term Investment | 0.5%
State Street Institutional Treasury Money Market Fund (Identified cost $27,309)		27,309	$	27,309
Total Investments | 99.8%
(Identified cost $4,087,131) (b)			$	4,996,293
Cash and Other Assets in Excess of Liabilities | 0.2%				9,949
Net Assets | 100.0%			$	5,006,242

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

Annual Report  95

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio
Corporate Bonds | 94.6%
Aerospace & Defense | 1.8%
Bombardier, Inc., 7.750%, 03/15/20 (e)	$	1,600	$	1,816,000
Huntington Ingalls Industries, Inc., 6.875%, 03/15/18		1,500		1,631,250
				3,447,250
Apparel & Textiles | 1.6%
Jones Group, Inc., 6.875%, 03/15/19		1,500		1,560,000
Levi Strauss & Co., 7.625%, 05/15/20		1,300		1,417,000
				2,977,000
Automotive | 4.3%
Chrysler Group LLC, 8.250%, 06/15/21		1,400		1,540,000
Dana Holding Corp., 6.500%, 02/15/19		1,500		1,601,250
Meritor, Inc., 8.125%, 09/15/15		215		226,288
Schaeffler Finance BV:
7.750%, 02/15/17 (e)		250		277,500
8.500%, 02/15/19 (e)		250		282,500
The Goodyear Tire & Rubber Co., 8.250%, 08/15/20		1,775		1,948,062
Tomkins LLC, 9.000%, 10/01/18		1,037		1,161,440
TRW Automotive, Inc., 8.875%, 12/01/17 (e)		1,000		1,100,000
				8,137,040
Building Materials | 4.8%
Griffon Corp., 7.125%, 04/01/18		1,705		1,807,300
HD Supply, Inc., 8.125%, 04/15/19 (e)		1,400		1,596,000
Legrand France SA, 8.500%, 02/15/25		925		1,226,895
Masco Corp., 6.125%, 10/03/16		1,500		1,656,813

Description	Principal Amount (000)		Value
Owens Corning, Inc., 9.000%, 06/15/19	$	123	$	153,716
USG Corp., 9.750%, 01/15/18		675		764,437
Vulcan Materials Co., 6.500%, 12/01/16		1,600		1,764,000
				8,969,161
Cable Television | 4.7%
Cablevision Systems Corp., 7.750%, 04/15/18		1,500		1,668,750
CCO Holdings LLC, 7.875%, 04/30/18		1,500		1,614,375
Cequel Communications Holdings I LLC, 6.375%, 09/15/20 (e)		1,800		1,874,250
DISH DBS Corp., 7.125%, 02/01/16		775		868,000
Mediacom LLC, 9.125%, 08/15/19		175		193,813
Nara Cable Funding, Ltd., 8.875%, 12/01/18 (e)		1,075		1,093,812
Unitymedia Hessen GmbH & Co. KG, 7.500%, 03/15/19 (e)		1,400		1,540,000
				8,853,000
Chemicals | 2.1%
Ineos Finance PLC, 7.500%, 05/01/20 (e)		1,400		1,466,500
Mosaic Global Holdings, Inc., 7.300%, 01/15/28		775		1,012,803
Tronox Finance LLC, 6.375%, 08/15/20 (e)		1,400		1,414,000
				3,893,303
Computer Services | 1.4%
First Data Corp.:
8.875%, 08/15/20 (e)		850		926,500
6.750%, 11/01/20 (e)		400		404,000
iGATE Corp., 9.000%, 05/01/16		1,200		1,300,500
				2,631,000
Diversified | 0.6%
Amsted Industries, Inc., 8.125%, 03/15/18 (e)		1,100		1,177,000

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

96  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Electric Generation | 2.3%
AES Corp., 8.000%, 10/15/17	$	1,472	$	1,700,160
Calpine Corp., 7.875%, 07/31/20 (e)		1,035		1,161,788
GenOn Energy, Inc.:
9.500%, 10/15/18		225		265,500
9.875%, 10/15/20		475		548,625
NRG Energy, Inc., 8.250%, 09/01/20		525		588,000
				4,264,073
Electronics | 1.3%
Amkor Technologies, Inc., 6.625%, 06/01/21		1,400		1,396,500
Freescale Semiconductor, Inc.:
8.875%, 12/15/14		25		25,219
9.250%, 04/15/18 (e)		900		983,250
				2,404,969
Energy Exploration & Production | 3.5%
Chesapeake Energy Corp., 9.500%, 02/15/15		1,400		1,582,000
Denbury Resources, Inc., 9.750%, 03/01/16		590		625,400
Linn Energy LLC, 6.500%, 05/15/19		1,750		1,767,500
Plains Exploration & Production Co., 6.500%, 11/15/20		1,400		1,550,500
Samson Investment Co., 9.750%, 02/15/20 (e)		1,000		1,057,500
				6,582,900
Energy Services | 3.2%
Cie Generale de Geophysique-Veritas, 7.750%, 05/15/17		1,765		1,835,600
Citgo Petroleum Corp., 11.500%, 07/01/17 (e)		1,250		1,443,750
Expro Finance Luxembourg SCA, 8.500%, 12/15/16 (e)		429		448,305
Frac Tech Services, Inc., 8.125%, 11/15/18 (e)		727		750,627
Offshore Group Investments, Ltd., 11.500%, 08/01/15		451		491,590
PBF Holding Co., LLC, 8.250%, 02/15/20 (e)		900		969,750
				5,939,622

Description	Principal Amount (000)		Value
Financial Services | 1.8%
Icahn Enterprises LP:
7.750%, 01/15/16	$	500	$	518,125
8.000%, 01/15/18		1,100		1,181,125
International Lease Finance Corp.:
8.625%, 09/15/15		500		561,875
5.750%, 05/15/16		500		527,045
8.750%, 03/15/17		500		577,500
				3,365,670
Food & Beverages | 2.4%
Constellation Brands, Inc., 7.250%, 05/15/17		950		1,118,625
Del Monte Corp., 7.625%, 02/15/19		1,500		1,563,750
Post Holdings, Inc., 7.375%, 02/15/22 (e)		1,650		1,807,781
				4,490,156
Forest & Paper Products | 0.8%
Resolute Forest Products, 10.250%, 10/15/18		590		675,550
Smurfit Kappa Treasury Funding, Ltd., 7.500%, 11/20/25		750		785,625
				1,461,175
Gaming | 4.4%
Boyd Gaming Corp., 9.125%, 12/01/18		1,350		1,377,000
Marina District Finance Co., Inc.:
9.500%, 10/15/15		500		485,000
9.875%, 08/15/18		500		480,000
MGM Resorts International, 7.625%, 01/15/17		750		802,500
Penn National Gaming, Inc., 8.750%, 08/15/19		825		940,500
Pinnacle Entertainment, Inc., 8.625%, 08/01/17		800		859,000
Scientific Games Corp., 8.125%, 09/15/18		350		385,000
Scientific Games International, Inc.:
9.250%, 06/15/19		250		278,125
6.250%, 09/01/20 (e)		850		877,625
Wynn Las Vegas LLC:
7.875%, 11/01/17		500		542,500
7.750%, 08/15/20		1,050		1,197,000
				8,224,250

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

Annual Report  97

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Gas Distribution | 5.5%
Copano Energy LLC, 7.750%, 06/01/18	$	1,600	$	1,686,000
El Paso Corp., 7.000%, 06/15/17		650		742,520
Energy Transfer Equity LP, 7.500%, 10/15/20		1,250		1,443,750
Ferrellgas Partners LP:
8.625%, 06/15/20		520		520,000
6.500%, 05/01/21		500		495,000
NGPL PipeCo LLC, 7.119%, 12/15/17 (e)		1,430		1,558,700
Niska Gas Storage US LLC, 8.875%, 03/15/18		750		770,625
Rockies Express Pipeline LLC, 6.850%, 07/15/18 (e)		1,450		1,515,250
Suburban Propane Partners LP, 7.500%, 10/01/18		1,329		1,431,997
				10,163,842
Health Services | 7.2%
Apria Healthcare Group, Inc., 11.250%, 11/01/14		550		568,563
Biomet, Inc., 6.500%, 08/01/20 (e)		1,750		1,859,375
Community Health Systems, Inc., 8.000%, 11/15/19		1,400		1,515,500
Fresenius US Finance II, Inc., 9.000%, 07/15/15 (e)		525		605,062
Grifols, Inc., 8.250%, 02/01/18		1,525		1,679,406
HCA, Inc., 8.000%, 10/01/18		1,600		1,852,000
Health Management Associates, Inc., 6.125%, 04/15/16		1,000		1,080,000
Service Corp. International, 6.750%, 04/01/16		750		840,000
Tenet Healthcare Corp.:
8.875%, 07/01/19		1,000		1,120,000
4.750%, 06/01/20 (e)		700		710,500
Vanguard Health Holding Co., LLC, 8.000%, 02/01/18		1,500		1,552,500
				13,382,906

Description	Principal Amount (000)		Value
Leisure & Entertainment | 1.4%
AMC Entertainment, Inc., 8.750%, 06/01/19	$	950	$	1,052,125
Cedar Fair LP, 9.125%, 08/01/18		225		253,125
Live Nation Entertainment, Inc., 8.125%, 05/15/18 (e)		135		145,463
Royal Caribbean Cruises, Ltd., 7.250%, 06/15/16		330		372,900
Speedway Motorsports, Inc., 8.750%, 06/01/16		826		882,787
				2,706,400
Machinery | 1.4%
Case New Holland, Inc., 7.750%, 09/01/13		200		208,000
Terex Corp., 6.500%, 04/01/20		1,200		1,272,000
The Manitowoc Co., Inc., 8.500%, 11/01/20		1,000		1,122,500
				2,602,500
Media | 3.4%
Clear Channel Worldwide Holdings, Inc., 6.500%, 11/15/22 (e)		1,750		1,815,625
Lamar Media Corp., 7.875%, 04/15/18		1,000		1,105,000
LIN Television Corp., 8.375%, 04/15/18		1,400		1,533,000
WMG Acquisition Corp., 6.000%, 01/15/21 (e)		1,800		1,899,000
				6,352,625
Metals & Mining | 4.7%
Aleris International, Inc., 7.625%, 02/15/18		1,175		1,195,563
Alpha Natural Resources, Inc., 6.000%, 06/01/19		1,250		1,150,000
Arch Coal, Inc., 7.000%, 06/15/19		1,651		1,535,430
Calcipar SA, 6.875%, 05/01/18 (e)		1,350		1,377,000
FMG Resources (August 2006) Property, Ltd., 7.000%, 11/01/15 (e)		1,800		1,890,000
Inmet Mining Corp., 8.750%, 06/01/20 (e)		1,500		1,638,750
				8,786,743

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

98  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (continued)
Packaging | 2.7%
Ardagh Packaging Finance PLC, 7.375%, 10/15/17 (e)	$	1,350	$	1,466,437
Reynolds Group Issuer, Inc., 5.750%, 10/15/20 (e)		1,500		1,548,750
Sealed Air Corp., 8.125%, 09/15/19 (e)		1,775		1,996,875
				5,012,062
Pharmaceutical & Biotechnology | 2.4%
Mylan, Inc.:
7.625%, 07/15/17 (e)		400		449,547
7.875%, 07/15/20 (e)		650		768,145
Valeant Pharmaceuticals International, Inc., 6.500%, 07/15/16 (e)		1,500		1,576,875
Warner Chilcott Co., LLC, 7.750%, 09/15/18		1,575		1,677,375
				4,471,942
Printing & Publishing | 2.4%
Gannett Co., Inc., 7.125%, 09/01/18		1,676		1,828,935
R.R. Donnelley & Sons Co., 7.250%, 05/15/18		1,600		1,544,000
The McClatchy Co., 9.000%, 12/15/22 (e)		1,100		1,123,375
				4,496,310
Real Estate | 2.0%
CB Richard Ellis Services, Inc., 11.625%, 06/15/17		975		1,072,500
CNL Lifestyle Properties, Inc., 7.250%, 04/15/19		1,600		1,528,000
DuPont Fabros Technology LP, 8.500%, 12/15/17		1,000		1,092,500
Forest City Enterprises, Inc., 7.625%, 06/01/15		142		142,000
				3,835,000

Description	Principal Amount (000)		Value
Retail | 3.5%
Ingles Markets, Inc., 8.875%, 05/15/17	$	1,238	$	1,320,017
JC Penney Corp., Inc., 5.650%, 06/01/20		1,325		1,149,438
Mead Products LLC, 6.750%, 04/30/20 (e)		1,750		1,837,500
QVC, Inc., 7.500%, 10/01/19 (e)		1,000		1,103,319
Sears Holdings Corp., 6.625%, 10/15/18		675		614,250
SuperValu, Inc., 8.000%, 05/01/16		550		523,875
				6,548,399
Steel-Producers | 3.2%
AK Steel Corp., 7.625%, 05/15/20		1,400		1,218,000
ArcelorMittal, 6.000%, 03/01/21		1,400		1,395,986
Steel Dynamics, Inc., 6.125%, 08/15/19 (e)		1,800		1,908,000
United States Steel Corp., 6.050%, 06/01/17		1,475		1,545,063
				6,067,049
Support Services | 4.5%
Algeco Scotsman Global Finance PLC, 8.500%, 10/15/18 (e)		1,250		1,293,750
Avis Budget Car Rental LLC, 9.625%, 03/15/18		835		931,025
Carlson Wagonlit BV, 6.875%, 06/15/19 (e)		1,300		1,371,500
Hertz Corp., 7.500%, 10/15/18		1,000		1,105,000
Iron Mountain, Inc., 8.000%, 06/15/20		1,600		1,692,000
United Rentals North America, Inc.:
9.250%, 12/15/19		1,000		1,140,000
7.375%, 05/15/20 (e)		750		823,125
				8,356,400

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

Annual Report  99

Description	Principal Amount (000)		Value
Lazard U.S. High Yield Portfolio (concluded)
Technology Hardware | 0.7%
Seagate HDD Cayman, 7.750%, 12/15/18	$	1,175	$	1,291,031
Telecommunications | 6.4%
Cincinnati Bell, Inc., 8.250%, 10/15/17		1,350		1,454,625
Cricket Communications, Inc., 7.750%, 05/15/16		750		794,063
Equinix, Inc., 8.125%, 03/01/18		1,182		1,303,155
Frontier Communications Corp., 8.125%, 10/01/18		1,500		1,725,000
GCI, Inc., 8.625%, 11/15/19		1,000		1,062,500
Intelsat Jackson Holdings, Ltd., 7.250%, 04/01/19		1,300		1,397,500
Sprint Capital Corp., 6.900%, 05/01/19		1,475		1,607,750
Wind Acquisition Finance SA, 11.750%, 07/15/17 (e)		800		838,000
Windstream Corp., 8.125%, 09/01/18		1,575		1,720,687
				11,903,280

Description	Principal Amount (000)		Value
Transportation | 2.2%
Florida East Coast Railway Corp., 8.125%, 02/01/17	$	1,200	$	1,272,000
Hapag-Lloyd AG, 9.750%, 10/15/17 (e)		1,075		1,080,375
Teekay Corp., 8.500%, 01/15/20		1,725		1,819,875
				4,172,250
Total Corporate Bonds (Identified cost $166,878,588)				176,966,308

Description	Shares		Value
Short-Term Investment | 4.9%
State Street Institutional Treasury Money Market Fund (Identified cost $9,100,911)		9,100,911	$	9,100,911
Total Investments | 99.5% (Identified cost $175,979,499) (b)			$	186,067,219
Cash and Other Assets in Excess of Liabilities | 0.5%				930,073
Net Assets | 100.0%			$	186,997,292

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

100  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. Municipal Portfolio
Municipal Bonds | 96.5%
Arizona | 3.1%
Scottsdale Arizona Municipal Property Corp. Excise Tax Revenue, 5.000%, 07/01/19	$	500	$	614,110
California | 3.4%
California State, 5.000%, 02/01/22		500		611,830
Val Verde California Unified School District School Construction, 5.000%, 01/01/22 (Pre-refunded to 01/01/15 @ $100) (h)		50		54,432
				666,262
Colorado | 6.1%
Colorado State Water Resources & Power Development Authority Wastewater Revenue Revolving Fund Series A, 5.250%, 09/01/14		500		540,820
Denver Colorado City & County Airport Revenue:
Series B, 5.000%, 11/15/21		500		619,440
5.500%, 11/15/33 (Pre-refunded to 11/15/13 @ $100) (h)		50		52,268
				1,212,528
Florida | 8.9%
Florida State Board of Education Public Education Capital Outlay 2011 Series A, 5.000%, 06/01/14		535		569,368
Florida State Board of Governors University System Improvement Revenue, 5.500%, 07/01/20		500		615,910
Orlando Florida Utilities Commission Utility System Revenue, 5.000%, 10/01/19		500		577,855
				1,763,133
Georgia | 1.5%
Valdosta & Lowndes County Georgia Hospital Authority South Medical Center Project Series B, 5.000%, 10/01/21		250		299,448

Description	Principal Amount (000)		Value
Illinois | 12.2%
Chicago Illinois Transit Authority Capital Grant Receipts Revenue Federal Transit Administration 5307 Funds, 5.000%, 06/01/17	$	750	$	846,225
Illinois State Toll Highway Authority Senior Priority Series A, 5.000%, 01/01/16		600		663,930
Railsplitter Illinois Tobacco Settlement Authority:
4.000%, 06/01/13		350		354,770
4.125%, 06/01/16		500		542,750
				2,407,675
Indiana | 3.4%
Indiana State Health & Educational Facilities Financing Authority Hospital Revenue Clarian Health Obligation Group Series B, 5.000%, 02/15/17		600		670,650
Massachusetts | 2.7%
Lowell Massachusetts State Qualified: 5.000%, 10/15/15		170		175,965
5.000%, 10/15/15 (Pre-Refunded to 10/15/13 @ $100) (h)		130		134,822
Massachusetts State:
Construction Loan Series E, 5.000%, 11/01/24 (Pre-refunded to 11/01/16 @ $100) (h)		50		58,327
Series A, 5.000%, 09/01/14		150		161,367
				530,481
Michigan | 5.7%
Imlay City Michigan Community Schools District, 5.000%, 05/01/18		500		557,405
Michigan State Hospital Finance Authority Trinity Health Series A, 5.250%, 12/01/15		500		562,140
				1,119,545
New Jersey | 2.7%
Essex County New Jersey Improvement Authority Guaranteed Lease County Correctional Series A, 5.000%, 10/01/28 (Pre-refunded to 10/01/13 @ $100) (h)		50		51,763

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

Annual Report  101

Description	Principal Amount (000)		Value
Lazard U.S. Municipal Portfolio (continued)
New Jersey State Educational Facilities Authority Revenue:
Princeton University Series E, 5.000%, 07/01/20 (Pre-refunded to 07/01/13 @ $100) (h)	$	50	$	51,182
Rowan University Series C, 5.125%, 07/01/28 (Pre-refunded to 07/01/14 @ $100) (h)		50		53,565
New Jersey State Transportation Trust Funding Authority Transportation System:
Series A, 5.625%, 06/15/14 (Escrowed to Maturity) (h)		75		80,785
Series C, 5.250%, 06/15/14 (Escrowed to Maturity) (h)		50		53,586
5.500%, 06/15/24 (Pre-refunded to 06/15/13 @ $100) (h)		50		51,186
Series D, 5.000%, 06/15/16 (Pre-refunded to 06/15/15 @ $100) (h)		25		27,791
New Jersey State Turnpike Authority Series A:
Pre-refunded, 6.000%, 01/01/14 (Escrowed to Maturity) (h)		50		52,825
Refunded, 6.000%, 01/01/14 (Escrowed to Maturity) (h)		50		52,825
New Jersey Tobacco Settlement Financing Corp., 5.000%, 06/01/13 (Escrowed to Maturity) (h)		25		25,491
Newark New Jersey Housing and Port Authority Newark Marine Terminal Rental Revenue, 5.000%, 01/01/37 (Pre-refunded to 01/01/14 @ $100) (h)		25		26,165
				527,164
New York | 17.8%
Metropolitan Transportation Authority New York Dedicated Tax Funding Series A, 4.750%, 04/01/28 (Pre-refunded to 10/01/15 @ $100) (h)		50		55,880

Description	Principal Amount (000)		Value
Metropolitan Transportation Authority New York Transportation Revenue Series C, 5.000%, 11/15/13	$	685	$	712,147
New York State Dormitory Authority Revenues:
Columbia University Series B, 5.000%, 07/01/16		170		196,127
Court Facilities Lease Westchester Series A, 5.000%, 08/01/15		565		624,591
Insured Student Housing Corp., 5.000%, 07/01/23 (Pre-refunded to 07/01/14 @ $100) (h)		50		53,378
Non State Supported Debt Brooklyn Law School Project Series A, 5.000%, 07/01/20		750		885,795
Non State Supported Debt New York University Hospital Center Series A, 5.000%, 07/01/17		585		668,959
State Personal Income Tax Revenue Education Series A, 5.000%, 03/15/17		100		113,163
New York State Thruway Authority 2nd General Highway & Bridge Trust Fund Series A, 5.000%, 04/01/15		175		192,614
				3,502,654
North Carolina | 3.4%
North Carolina State Eastern Municipal Power Agency Power System Revenue Series A, 5.250%, 01/01/20		595		671,231
Pennsylvania | 9.6%
Pennsylvania State Higher Educational Facilties Authority Revenue Temple University, 5.000%, 04/01/15		400		438,372
Pennsylvania State Turnpike Commission Turnpike Revenue Series B, 5.000%, 12/01/19		730		869,080
Washington County Pennsylvania Industrial Development Authority College Revenue Washington Jefferson College, 5.000%, 11/01/22		500		576,665
				1,884,117

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

102  Annual Report

Description	Principal Amount (000)		Value
Lazard U.S. Municipal Portfolio (concluded)
Tennessee | 1.9%
Metropolitan Government Nashville & Davidson County Tennessee Health & Educational Facilities Board Vanderbilt University Series B, 5.000%, 10/01/18	$	315	$	382,385
Texas | 10.4%
Houston Texas Airport System Revenue Sub Lien Series B, 5.000%, 07/01/24		350		421,621
North Texas Tollway Authority Revenue System First Tier Series A MBIA-IBC, 6.000%, 01/01/23		340		402,172
Plano Texas Independent School District School Building, 5.000%, 02/15/14 (Pre-refunded to 02/15/13 @ $100) (h)		20		20,110
San Antonio Texas General Improvement, 5.000%, 02/01/19		545		615,278
Texas State Transportation Commission Revenue First Tier:
5.000%, 04/01/19		300		354,645
5.000%, 04/01/20		200		237,152
				2,050,978

Description	Principal Amount (000)		Value
Washington | 2.2%
Washington State Various Purposes Series R-A, 5.000%, 01/01/15	$	400	$	435,712
Wisconsin | 1.5%
Wisconsin State Health & Educational Facilities Authority Revenue Gundersen Lutheran Series A, 5.000%, 10/15/17		250		285,618
Total Municipal Bonds (Identified cost $18,800,089)				19,023,691

Description	Shares		Value
Short-Term Investment | 2.3%
State Street Institutional Treasury Money Market Fund (Identified cost $460,912)		460,912	$	460,912
Total Investments | 98.8% (Identified cost $19,261,001) (b)			$	19,484,603
Cash and Other Assets in Excess of Liabilities | 1.2%				245,771
Net Assets | 100.0%			$	19,730,374

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

Annual Report  103

Description	Security Currency	Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio
Corporate Bonds | 29.5%
Australia | 2.2%
Commonwealth Bank of Australia:
6.500%, 08/13/13	AUD		10	$	10,546
5.750%, 09/23/13	AUD		23		24,232
Telstra Corp., Ltd., 6.250%, 04/15/15	AUD		40		43,985
Westpac Banking Corp., 6.375%, 12/10/13	AUD		25		26,641
					105,404
Brazil | 1.6%
Petrobras International Finance Co., 7.875%, 03/15/19	USD		62		77,443
Canada | 2.7%
Shaw Communications, Inc., 5.650%, 10/01/19	CAD		45		50,974
Suncor Energy, Inc., 6.100%, 06/01/18	USD		25		30,495
Wells Fargo Financial Canada Corp., 2.774%, 02/09/17	CAD		50		51,141
					132,610
Chile | 2.2%
Codelco, Inc., 3.750%, 11/04/20	USD		100		108,132
France | 1.6%
Electricite de France SA, 5.000%, 02/05/18	EUR		50		77,723
Netherlands | 0.9%
BMW Finance NV, 3.375%, 12/14/18	GBP		25		43,221
Norway | 2.4%
Statoil ASA, 6.875%, 03/11/31	GBP		50		116,387
United Kingdom | 5.6%
BG Energy Capital PLC, 5.125%, 12/01/25	GBP		50		95,563
Description	Security Currency	Principal Amount (000)		Value
GKN Holdings PLC, 6.750%, 10/28/19	GBP		10	$	18,468
Network Rail Infrastructure Finance PLC, 4.400%, 03/06/16	CAD		150		160,443
					274,474
United States | 10.3%
AES Corp., 7.750%, 10/15/15	USD		20		22,450
Anheuser-Busch InBev Worldwide, Inc., 9.750%, 11/17/15	BRL		100		52,015
Constellation Brands, Inc., 7.250%, 05/15/17	USD		20		23,550
Credit Suisse USA, Inc., 4.875%, 01/15/15	USD		25		26,944
DISH DBS Corp., 7.125%, 02/01/16	USD		20		22,400
Energizer Holdings, Inc., 4.700%, 05/19/21	USD		40		42,869
Fresenius US Finance II, Inc., 9.000%, 07/15/15	USD		10		11,525
General Electric Capital Corp., 5.500%, 02/01/17	NZD		45		39,092
Goldman Sachs Group, Inc., 6.250%, 09/01/17	USD		25		29,490
JPMorgan Chase & Co., 3.875%, 09/23/20	EUR		50		75,097
Marathon Oil Corp., 2.800%, 11/01/22	USD		35		35,217
Masco Corp., 6.125%, 10/03/16	USD		15		16,568
Peabody Energy Corp., 7.375%, 11/01/16	USD		15		17,175
Starbucks Corp., 6.250%, 08/15/17	USD		20		24,057
Valeant Pharmaceuticals International, 6.750%, 10/01/17 (e)	USD		25		27,000
Valero Energy Corp., 6.125%, 02/01/20	USD		30		36,480
					501,929
Total Corporate Bonds (Identified cost $1,409,954)					1,437,323

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

104  Annual Report

Description	Security Currency	Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio (continued)
Foreign Government Obligations | 56.2%
Australia | 3.0%
New South Wales Treasury Corp., 5.000%, 02/25/39	GBP		50	$	99,494
Queensland Treasury Corp., 6.250%, 02/21/20	AUD		40		47,318
					146,812
Austria | 1.1%
Republic of Austria, 3.900%, 07/15/20	EUR		35		54,611
Bahamas | 1.7%
Commonwealth of Bahamas, 6.950%, 11/20/29	USD		70		85,400
Belgium | 2.2%
Belgium Kingdom, 5.500%, 03/28/28	EUR		60		108,225
Bermuda | 2.4%
Government of Bermuda, 5.603%, 07/20/20	USD		100		117,610
Brazil | 4.9%
Federal Republic of Brazil:
11.000%, 06/26/17	EUR		30		55,715
12.500%, 01/05/22	BRL		250		182,845
					238,560
Canada | 5.5%
Province of British Columbia, 3.700%, 12/18/20	CAD		45		49,616
Province of Ontario, 6.250%, 06/16/15	NZD		75		66,145
Province of Quebec, 8.500%, 04/01/26	CAD		35		54,824
Province of Saskatchewan, 8.500%, 07/15/22	USD		65		97,927
					268,512
China | 3.3%
China Government Bond, 2.560%, 06/29/17	CNY		1,000		159,830
Description	Security Currency	Principal Amount (000)		Value
Czech Republic | 1.6%
Czech Republic, 5.000%, 06/11/18	EUR		50	$	79,010
Denmark | 0.8%
Kommunekredit, 2.000%, 01/01/18	DKK		200		37,116
France | 2.3%
Government of France, 4.250%, 10/25/23	EUR		70		111,168
Mexico | 3.7%
Mexican Bonos, 9.500%, 12/18/14	MXN		1,160		97,677
United Mexican States, 6.750%, 02/06/24	GBP		40		81,346
					179,023
Netherlands | 3.3%
Netherlands Government Bonds:
3.750%, 01/15/23	EUR		65		103,159
2.500%, 01/15/33	EUR		40		55,542
					158,701
New Zealand | 1.7%
Auckland Council, 4.620%, 03/29/16	NZD		100		84,709
Norway | 1.6%
Norwegian Government Bond, 4.500%, 05/22/19	NOK		370		77,623
Peru | 2.1%
Peru Bono Soberano, 7.840%, 08/12/20	PEN		210		103,688
Poland | 6.9%
Poland Government Bonds:
5.750%, 04/25/14	PLN		455		151,880
5.250%, 10/25/17	PLN		310		109,179
Republic of Poland:
3.250%, 05/15/19	CHF		30		36,637
6.375%, 07/15/19	USD		32		39,895
					337,591

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

Annual Report  105

Description	Security Currency	Principal Amount (000)		Value
Lazard Global Fixed Income Portfolio (continued)
Qatar | 2.5%
State of Qatar, 5.250%, 01/20/20	USD		100	$	119,500
South Africa | 1.5%
Republic of South Africa, 4.500%, 04/05/16	EUR		50		71,986
Sweden | 3.4%
Kommuninvest I Sverige AB, 2.750%, 08/12/15	SEK		670		106,605
Svensk Exportkredit AB, 7.625%, 06/30/14	NZD		65		56,978
					163,583
Turkey | 0.7%
Turkey Government Bond, 8.000%, 06/04/14	TRY		60		34,541
Total Foreign Government Obligations (Identified cost $2,612,434)					2,737,799
Quasi Government Bonds | 4.7%
Canada | 1.0%
Ontario Electricity Financial Corp., 10.125%, 10/15/21	CAD		30		47,706
Germany | 3.7%
KfW:
2.875%, 10/12/16	NOK		560		103,888
3.375%, 01/18/21	EUR		35		53,593
Landeskreditbank Baden- Wuerttemberg Foerderbank, 3.000%, 05/22/17	NOK		130		23,834
					181,315
Total Quasi Government Bonds (Identified cost $216,179)					229,021
Supranationals | 7.9%
Asian Development Bank:
3.375%, 05/20/14	NOK		250		45,947
2.850%, 10/21/20	CNY		500		79,127
					125,074
Description	Security Currency	Principal Amount (000)		Value
Corporacion Andina de Fomento:
3.750%, 01/15/16	USD		68	$	71,761
8.125%, 06/04/19	USD		20		25,747
					97,508
Inter-American Development Bank, 6.000%, 12/15/17	NZD		30		27,595
International Bank for Reconstruction & Development:
2.300%, 02/26/13	KRW		100,000		93,305
7.250%, 10/04/13	TRY		70		39,945
					133,250
Total Supranationals (Identified cost $376,472)					383,427
U.S. Municipal Bonds | 3.6%
Alaska | 1.9%
Alaska State Qualified School Construction Bonds, 5.342%, 08/01/27	USD		75		92,255
Texas | 1.7%
University of Texas Build America Bonds Series B, 6.276%, 08/15/41	USD		70		82,215
Total U.S. Municipal Bonds (Identified cost $177,643)					174,470
Description		Shares		Value
Short-Term Investment | 0.6%
State Street Institutional Treasury Money Market Fund (Identified cost $29,424)			29,424	$	29,424
Total Investments | 102.5% (Identified cost $4,822,106) (b), (f)				$	4,991,464
Liabilities in Excess of Cash and Other Assets | (2.5)%					(122,723	)
Net Assets | 100.0%				$	4,868,741

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

106  Annual Report

Lazard Global Fixed Income Portfolio (concluded)

Forward Currency Contracts open at December 31, 2012:

Currency	Counterparty		Expiration Date		Foreign Currency Amount		U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Appreciation		Unrealized Depreciation
Forward Currency Purchase Contracts
AUD		CAN		02/15/13		51,210	$	53,000	$	53,010	$	10	$	—
CHF		HSB		02/15/13		190,680		202,183		208,647		6,464		—
DKK		CSF		02/15/13		997,604		170,368		176,619		6,251		—
EUR		HSB		02/15/13		16,506		21,015		21,795		780		—
EUR		HSB		02/15/13		29,543		39,246		39,009		—		237
EUR		HSB		02/15/13		39,588		50,817		52,274		1,457		—
HKD		SCB		02/15/13		630,681		81,375		81,383		8		—
JPY		HSB		02/15/13		8,198,002		101,130		94,657		—		6,473
JPY		HSB		02/15/13		9,273,000		110,000		107,069		—		2,931
JPY		HSB		02/15/13		65,473,184		824,345		755,977		—		68,368
MXN		HSB		02/15/13		696,776		54,000		53,696		—		304
NZD		JPM		02/15/13		60,751		50,000		50,067		67		—
RUB		HSB		02/06/13		1,616,978		50,590		52,614		2,024		—
SGD		SSB		02/15/13		10,697		8,746		8,756		10		—
Total Forward Currency Purchase Contracts							$	1,816,815	$	1,755,573	$	17,071	$	78,313
Forward Currency Sale Contracts
AUD		CAN		02/15/13		18,468	$	19,044	$	19,116	$	—	$	72
AUD		CAN		02/15/13		70,093		72,282		72,557		—		275
BRL		CAN		01/15/13		383,669		183,829		187,088		—		3,259
BRL		HSB		01/15/13		122,230		58,500		59,603		—		1,103
CAD		RBC		02/15/13		296,159		295,752		297,472		—		1,720
CHF		HSB		02/15/13		2,853		3,060		3,122		—		62
DKK		CSF		02/15/13		210,311		37,134		37,234		—		100
EUR		HSB		02/15/13		190,487		242,395		251,527		—		9,132
GBP		HSB		02/15/13		69,424		110,202		112,761		—		2,559
KRW		SCB		02/15/13		59,909,960		55,090		55,811		—		721
MXN		HSB		02/15/13		1,187,002		88,813		91,475		—		2,662
NOK		HSB		02/15/13		442,304		76,325		79,458		—		3,133
NOK		HSB		02/15/13		961,035		166,483		172,646		—		6,163
NZD		JPM		02/15/13		331,688		267,754		273,359		—		5,605
PEN		SCB		03/18/13		139,218		54,166		54,348		—		182
PLN		CAN		02/15/13		141,331		42,635		45,459		—		2,824
PLN		HSB		02/15/13		794		240		255		—		15
PLN		HSB		02/15/13		635,303		191,568		204,345		—		12,777
RUB		HSB		01/11/13		1,576,174		49,130		51,525		—		2,395
SEK		CAN		02/15/13		512,582		75,455		78,741		—		3,286
Total Forward Currency Sale Contracts							$	2,089,857	$	2,147,902		—		58,045
Gross unrealized appreciation/depreciation on Forward Currency Purchase and Sale Contracts											$	17,071	$	136,358

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

Annual Report   107

Description	Shares		Value
Lazard Capital Allocator Opportunistic Strategies Portfolio
Exchange-Traded Funds | 78.4%
Financial Select Sector SPDR Fund		915,800	$	15,019,120
iShares MSCI Italy Index Fund		740,600		9,961,070
iShares S&P Global Energy Sector Index Fund		267,900		10,247,175
iShares S&P Global Industrials Index Fund		230,900		12,674,101
iShares S&P North American Technology Sector Index Fund		55,800		3,764,268
iShares S&P North American Technology-Software Index Fund		148,700		9,372,486
iShares Silver Trust (a)		143,600		4,214,660
Market Vectors Agribusiness ETF		268,700		14,176,612
PowerShares Build America Bond Portfolio		368,900		11,155,536
PowerShares DB Oil Fund (a)		263,100		6,824,814
PowerShares Financial Preferred Portfolio		284,100		5,190,507
PowerShares Senior Loan Portfolio		222,300		5,553,054
SPDR Barclays High Yield Bond ETF		279,200		11,363,440
SPDR Gold Trust (a)		152,500		24,706,525
SPDR S&P China ETF		164,000		12,150,760
Vanguard Short-Term Corporate Bond ETF		279,800		22,473,536
Total Exchange-Traded Funds (Identified cost $174,546,491)				178,847,664
Description	Shares		Value
Closed-End Management Investment Company | 4.8%
JPMorgan European Smaller Companies Trust PLC (Identified cost $10,372,150)		924,338	$	10,938,725
Short-Term Investment | 16.6%
State Street Institutional Treasury Money Market Fund (Identified cost $37,897,561)		37,897,561		37,897,561
Total Investments | 99.8% (Identified cost $222,816,202) (b)			$	227,683,950
Cash and Other Assets in Excess of Liabilities | 0.2%				397,702
Net Assets | 100.0%			$	228,081,652

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

108   Annual Report

Lazard Capital Allocator Opportunistic Strategies Portfolio (concluded)

Forward Currency Sale Contracts open at December 31, 2012:

Currency	Counterparty	Expiration Date	Foreign Currency Amount	U.S. $ Cost on Origination Date		U.S. $ Current Value		Unrealized Depreciation
GBP	SSB	03/18/13	3,071,493	$	4,976,433	$	4,988,324	$	11,891
GBP	SSB	03/18/13	3,644,000		5,900,000		5,918,115		18,115
Total Forward Currency Sale Contracts				$	10,876,433	$	10,906,439	$	30,006

Total Return Swap Agreements open at December 31, 2012:

Currency	Counterparty	Notional Amount	Expiration Date	Pay	Receive	Unrealized Appreciation		Unrealized Depreciation
USD	GSC	6,053,653	10/30/13	1 Month USD	Appreciation, and
				LIBOR plus	dividends paid, on
				0.40%	securities in the
					Equity Basket	$	—	$	64,241
USD	GSC	12,578,436	12/12/13	1 Month USD	Appreciation, and
				LIBOR plus	dividends paid, on
				0.40%	securities in the
					Equity Basket		—		19,656
USD	GSC	5,430,064	12/19/13	1 Month USD	Appreciation, and
				LIBOR plus	dividends paid, on
				0.40%	securities in the
					Equity Basket		72,576		—
Gross unrealized appreciation/depreciation on Swap Agreements						$	72,576	$	83,897

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

Annual Report  109

The Lazard Funds, Inc. Notes to Portfolios of Investments December 31, 2012

(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 Concentrated	$	114,331,460	$	7,844,822	$	993,811	$	6,851,011
U.S. Strategic Equity		74,408,441		11,497,463		2,218,010		9,279,453
U.S. Mid Cap Equity		71,488,213		4,379,944		3,491,756		888,188
U.S. Small-Mid Cap Equity		295,367,430		22,415,323		7,597,031		14,818,292
Global Listed Infrastructure		138,128,466		3,948,260		3,105,462		842,798
International Equity		114,279,536		21,404,099		1,000,205		20,403,894
International Equity Select		9,279,155		1,248,387		105,400		1,142,987
International Strategic Equity		1,019,173,582		184,152,448		1,871,650		182,280,798
International Small Cap Equity		50,945,165		13,482,820		1,440,849		12,041,971
Emerging Markets Equity		14,175,839,648		2,734,583,897		960,277,412		1,774,306,485
Developing Markets Equity		433,913,941		22,602,525		26,198,709		(3,596,184	)
Emerging Markets Equity Blend		230,308,723		13,723,002		6,536,631		7,186,371
Emerging Markets Multi-Strategy		119,623,839		6,283,850		2,104,213		4,179,637
Emerging Markets Debt		262,193,316		16,414,799		1,487,374		14,927,425
U.S. Realty Income		98,987,040		6,762,129		573,950		6,188,179
U.S. Realty Equity		64,999,750		3,146,648		578,664		2,567,984
International Realty Equity		4,222,893		851,787		78,387		773,400
U.S. High Yield		175,980,868		10,805,569		719,218		10,086,351
U.S. Municipal		19,261,001		253,715		30,113		223,602
Global Fixed Income		4,822,106		185,142		15,784		169,358
Capital Allocator Opportunistic Strategies		223,153,347		5,654,608		1,124,005		4,530,603

(c)	Private placements.
(d)	Security valued using Level 2 inputs, based on reference to a similar security from the same issuer which was trading on an active market, under accounting principles generally accepted in the United States of America (“GAAP”) hierarchy—see Note 9.
(e)	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, 2012. The percentage of net assets are as follows:

Portfolio	Percentage of Net Assets
Emerging Markets Equity		1.7	%
Emerging Markets Equity Blend		0.5
Emerging Markets Multi-Strategy		3.9
Emerging Markets Debt		9.8
U.S. High Yield		31.4
Global Fixed Income		0.6

(f)	The Portfolio, at all times, maintains portfolio securities in sufficient amount to cover its obligations related to investments in forward currency contracts.
(g)	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, 2012 which may step up at a future date.
(h)	Security collateralized by an amount sufficient to pay principal and interest.

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

110  Annual Report

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
CRC	—	Costa Rican Colon
CZK	—	Czech Koruna
DKK	—	Danish Krone
DOP	—	Dominican Republic Peso
EUR	—	Euro
GBP	—	British Pound Sterling
GHS	—	Ghanaian Cedi
HKD	—	Hong Kong Dollar
HUF	—	Hungarian Forint
IDR	—	Indonesian Rupiah
ILS	—	Israeli Shekel
INR	—	Indian Rupee
JPY	—	Japanese Yen
KRW	—	South Korean Won
KZT	—	Kazakhstan Tenge
MXN	—	Mexican New Peso
MYR	—	Malaysian Ringgit
NGN	—	Nigerian Naira
NOK	—	Norwegian Krone
NZD	—	New Zealand Dollar
PEN	—	Peruvian Nuevo Sol
PHP	—	Philippine Peso
PLN	—	Polish Zloty
RON	—	New Romanian Leu
RSD	—	Serbian Dinar
RUB	—	Russian Ruble
SEK	—	Swedish Krona
SGD	—	Singapore Dollar
THB	—	Thai Baht
TRY	—	New Turkish Lira
UGX	—	Ugandan Shilling
USD	—	United States Dollar
UYU	—	Uruguayan Peso
ZAR	—	South African Rand
ZMK	—	Zambian Kwacha
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.

Annual Report  111

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		—	%		1.2	%		1.0	%		—	%		—	%		0.7	%
Airport Development & Maintenance		17.2			—			—			—			—			—
Alcohol & Tobacco		—			5.4			7.1			4.6			—			4.8
Automotive		—			2.6			2.5			3.4			1.5			—
Banking		—			10.7			12.4			7.5			3.1			22.1
Cable Television		1.0			—			1.0			1.8			—			—
Chemicals		—			0.9			1.0			1.7			4.1			1.2
Commercial Services		—			1.9			2.5			1.5			13.7			4.3
Computer Software		—			1.8			2.9			—			—			2.9
Construction & Engineering		1.1			—			—			—			0.8			1.7
Consumer Products		—			2.4			2.4			5.8			3.9			6.8
Diversified		—			0.6			1.2			0.8			—			1.3
Electric		18.8			2.4			0.7			—			—			—
Energy Exploration & Production		—			—			0.9			1.7			—			4.4
Energy Integrated		—			5.2			4.0			1.8			1.0			3.2
Energy Services		6.4			3.2			3.5			5.1			6.4			—
Financial Services		—			2.0			1.2			3.3			9.0			3.4
Food & Beverages		—			3.0			3.9			6.1			1.0			1.1
Forest & Paper Products		—			2.2			1.6			5.2			1.0			0.8
Gas Utilities		10.5			—			—			—			—			—
Health Services		—			1.1			1.1			2.4			5.1			—
Housing		—			4.7			2.8			4.3			1.6			1.6
Insurance		—			4.2			3.1			5.7			1.1			1.4
Leisure & Entertainment		—			5.2			3.3			8.5			4.1			1.7
Manufacturing		—			8.4			6.8			7.6			12.7			4.3
Medical Products		—			1.1			1.1			3.2			5.5			—
Metals & Mining		—			2.8			3.9			—			—			5.0
Pharmaceutical & Biotechnology		—			11.9			10.9			7.8			4.3			—
Real Estate		—			—			—			—			3.2			—
Retail		—			4.6			2.8			6.4			9.2			6.5
Semiconductors & Components		—			1.2			3.4			—			2.1			3.4
Technology		—			1.8			1.8			—			—			0.9
Technology Hardware		—			—			—			—			1.4			0.9
Telecommunications		—			3.2			5.6			—			—			13.3
Transportation		40.7			2.0			2.2			1.4			3.5			1.4
Water		3.7			—			—			—			—			—
Subtotal		99.4			97.7			98.6			97.6			99.3			99.1
Short-Term Investments		1.4			—			1.0			1.7			0.6			1.0
Repurchase Agreement		—			2.3			—			—			—			—
Total Investments		100.8	%		100.0	%		99.6	%		99.3	%		99.9	%		100.1	%

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

112  Annual Report

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			Lazard Global Fixed Income Portfolio
Agriculture		1.3	%		1.7	%		1.3	%		0.3	%		—	%		—	%
Alcohol & Tobacco		—			1.5			1.0			—			—			1.1
Automotive		3.5			2.0			1.4			0.1			—			1.3
Banking		23.7			22.5			16.2			3.5			—			4.9
Building Materials		—			—			0.4			0.4			—			0.3
Cable Television		—			—			—			—			—			1.5
Chemicals		—			—			0.3			0.4			—			—
Coal Producer & Power Generator		—			—			0.1			0.2			—			—
Commercial Services		—			1.2			0.8			—			—			—
Computer Software		4.2			2.9			2.0			—			—			—
Construction & Engineering		1.4			2.3			1.9			0.5			—			—
Consumer Products		—			1.4			0.9			—			—			0.9
Diversified		—			1.0			0.9			0.2			—			—
Electric		0.8			—			0.1			0.7			—			2.6
Electric Generation		—			—			—			—			—			0.5
Energy		—			—			1.1			3.9			—			2.0
Energy Exploration & Production		5.0			4.1			3.3			1.5			—			0.7
Energy Integrated		4.9			3.0			2.8			2.5			—			4.7
Energy Services		2.9			2.9			2.0			0.1			—			0.6
Financial Services		3.9			1.8			1.4			0.2			—			4.6
Food & Beverages		—			1.5			1.0			—			—			1.0
Forest & Paper Products		—			1.1			0.8			0.2			—			—
Health Services		—			—			—			—			—			0.2
Household and Personal Products		1.0			—			—			—			—			—
Housing		2.1			2.0			1.3			—			1.2			—
Insurance		2.0			3.0			2.0			—			—			—
Leisure & Entertainment		1.5			3.3			2.4			0.3			2.2			—
Manufacturing		8.9			6.7			4.4			—			—			—
Metals & Mining		5.2			4.9			3.9			0.8			—			2.6
Pharmaceutical & Biotechnology		2.2			2.2			1.4			—			—			0.5
Real Estate		4.4			0.9			0.6			—			95.9			—
Restaurants		—			—			0.1			0.3			—			—
Retail		6.7			5.1			3.4			—			—			—
Semiconductors & Components		2.9			4.7			3.1			—			—			—
Special Purpose Entity		—			—			0.1			0.1			—			—
Technology Hardware		4.5			4.3			2.9			—			—			—
Telecommunications		0.9			5.4			4.1			0.9			—			0.9
Transportation		3.4			2.5			1.7			0.2			—			3.3
Subtotal		97.3			95.9			71.1			17.3			99.3			34.2
Foreign Government Obligations		—			—			8.3			77.9			—			56.2
Supranationals		—			—			0.1			0.5			—			7.9
U.S. Municipal Bonds		—			—			—			—			—			3.6
U.S. Treasury Securities		—			—			9.9			—			—			—
Short-Term Investments		2.1			3.4			8.9			0.3			0.5			0.6
Total Investments		99.4	%		99.3	%		98.3	%		96.0	%		99.8	%		102.5	%

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

Annual Report  113

The Lazard Funds, Inc. Statements of Assets and Liabilities

December 31, 2012	Lazard U.S. Equity Concentrated Portfolio			Lazard U.S. Strategic Equity Portfolio
ASSETS
Investments in securities, at value	$	121,182,471		$	83,687,894
Cash		—			—
Foreign currency		—			—
Receivables for:
Capital stock sold		903,385			76,648
Dividends and interest		54,170			67,491
Investments sold		—			—
Amount due from Investment Manager (Note 3)		—			—
Gross unrealized appreciation on forward currency contracts		—			—
Total assets		122,140,026			83,832,033
LIABILITIES
Payables for:
Due to custodian		—			—
Foreign currency due to Custodian		—			—
Management fees		49,373			21,679
Accrued distribution fees		141			1,848
Accrued directors’ fees		179			130
Capital stock redeemed		—			66,263
Investments purchased		—			—
Gross unrealized depreciation on forward currency contracts		—			—
Other accrued expenses and payables		20,350			14,074
Total liabilities		70,043			103,994
Net assets	$	122,069,983		$	83,728,039
NET ASSETS
Paid in capital	$	116,381,974		$	84,356,933
Undistributed (distributions in excess of) net investment income		(9,657	)		210,232
Accumulated net realized gain (loss)		(1,203,678	)		(10,535,635	)
Net unrealized appreciation (depreciation) on:
Investments		6,901,344			9,696,509
Foreign currency and forward currency contracts		—			—
Net assets	$	122,069,983		$	83,728,039
Institutional Shares
Net assets	$	121,379,165		$	75,326,958
Shares of capital stock outstanding*		11,338,350			7,451,909
Net asset value, offering and redemption price per share	$	10.71		$	10.11
Open Shares
Net assets	$	690,818		$	8,401,081
Shares of capital stock outstanding*		64,143			828,181
Net asset value, offering and redemption price per share	$	10.77		$	10.14
Cost of investments in securities	$	114,281,127		$	73,991,385
Cost of foreign currency	$	—		$	—

* $0.001 par value, 3,400,000,000 shares authorized for the Portfolios in total.

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			Lazard International Equity Portfolio			Lazard International Equity Select Portfolio
ASSETS
Investments in securities, at value	$	72,376,401		$	310,185,722	$	138,971,264		$	134,683,430		$	10,422,142
Cash		—			818		—			399			—
Foreign currency		—			—		3			—			9,424
Receivables for:
Capital stock sold		45,983			156,583		1,835,854			128,875			23,581
Dividends and interest		57,149			236,441		428,314			130,643			10,847
Investments sold		885,441			638,634		414,722			—			—
Amount due from Investment Manager (Note 3)		—			—		—			—			10,660
Gross unrealized appreciation on forward currency contracts		—			—		1,355,765			—			—
Total assets		73,364,974			311,218,198		143,005,922			134,943,347			10,476,654
LIABILITIES
Payables for:
Due to custodian		—			—		—			—			656
Foreign currency due to Custodian		—			—		—			19			—
Management fees		45,958			183,564		104,575			83,822			—
Accrued distribution fees		8,819			3,634		2,681			5,338			590
Accrued directors’ fees		121			439		209			190			15
Capital stock redeemed		263,776			3,155,666		2,206,794			58,626			332
Investments purchased		733,763			2,005,768		—			76,121			2,018
Gross unrealized depreciation on forward currency contracts		—			—		2,842,927			—			—
Other accrued expenses and payables		17,711			30,182		21,522			21,781			14,046
Total liabilities		1,070,148			5,379,253		5,178,708			245,897			17,657
Net assets	$	72,294,826		$	305,838,945	$	137,827,214		$	134,697,450		$	10,458,997
NET ASSETS
Paid in capital	$	131,513,320		$	287,290,767	$	136,525,675		$	147,367,974		$	13,627,174
Undistributed (distributions in excess of) net investment income		178,968			229,350		629,620			(47,732	)		20,553
Accumulated net realized gain (loss)		(60,501,533	)		2,661,351		(4,745,554	)		(33,503,611	)		(4,420,005	)
Net unrealized appreciation (depreciation) on:
Investments		1,104,071			15,657,477		6,906,390			20,881,257			1,231,277
Foreign currency and forward currency contracts		—			—		(1,488,917	)		(438	)		(2	)
Net assets	$	72,294,826		$	305,838,945	$	137,827,214		$	134,697,450		$	10,458,997
Institutional Shares
Net assets	$	30,803,320		$	289,854,622	$	125,112,323		$	109,087,677		$	7,571,350
Shares of capital stock outstanding*		2,461,019			21,804,765		11,419,125			7,380,561			889,319
Net asset value, offering and redemption price per share	$	12.52		$	13.29	$	10.96		$	14.78		$	8.51
Open Shares
Net assets	$	41,491,506		$	15,984,323	$	12,714,891		$	25,609,773		$	2,887,647
Shares of capital stock outstanding*		3,358,349			1,237,189		1,159,035			1,713,621			337,112
Net asset value, offering and redemption price per share	$	12.35		$	12.92	$	10.97		$	14.94		$	8.57
Cost of investments in securities	$	71,272,330		$	294,528,245	$	132,064,874		$	113,802,173		$	9,190,865
Cost of foreign currency	$	—		$	—	$	3		$	(19	)	$	9,371

Annual Report  115

December 31, 2012	Lazard International Strategic Equity Portfolio			Lazard International Small Cap Equity Portfolio
ASSETS
Investments in securities and purchased options, at value	$	1,201,454,380		$	62,987,136
Cash		—			—
Foreign currency		11			71
Receivables for:
Capital stock sold		8,417,952			40,107
Dividends and interest		869,136			88,402
Investments sold		—			—
Gross unrealized appreciation on:
Forward currency contracts		—			—
Swap agreements		—			—
Premium for swap agreements purchased		—			—
Total assets		1,210,741,479			63,115,716
LIABILITIES
Payables for:
Due to custodian		—			—
Management fees		735,055			39,314
Accrued distribution fees		65,270			3,772
Accrued directors’ fees		1,681			96
Capital stock redeemed		361,824			26,878
Investments purchased		14,071			—
Dividends		—			—
Gross unrealized depreciation on:
Forward currency contracts		—			—
Swap agreements		—			—
Written options, at value		—			—
Other accrued expenses and payables		143,221			17,146
Total liabilities		1,321,122			87,206
Net assets	$	1,209,420,357		$	63,028,510
NET ASSETS
Paid in capital	$	1,096,260,567		$	130,750,568
Undistributed (distributions in excess of) net investment income		1,257,090			(67,900	)
Accumulated net realized gain (loss)		(72,399,018	)		(81,264,091	)
Net unrealized appreciation (depreciation) on:
Investments		184,302,762			13,612,437
Foreign currency and forward currency contracts		(1,044	)		(2,504	)
Swap agreements		—			—
Written options		—			—
Net assets	$	1,209,420,357		$	63,028,510
Institutional Shares
Net assets	$	893,609,520		$	45,359,794
Shares of capital stock outstanding*		76,287,527			5,583,338
Net asset value, offering and redemption price per share	$	11.71		$	8.12
Open Shares
Net assets	$	315,810,837		$	17,668,716
Shares of capital stock outstanding*		26,753,257			2,163,219
Net asset value, offering and redemption price per share	$	11.80		$	8.17
Cost of investments in securities	$	1,017,151,618		$	49,374,699
Cost of foreign currency	$	11		$	70
* $0.001 par value, 3,400,000,000 shares authorized for the Portfolios in total.

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

116  Annual Report

	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	$	15,950,146,133		$	430,317,757		$	237,495,094		$	123,803,476		$	277,120,741
Cash		—			—			—			215,885			—
Foreign currency		6,036,455			269,442			994,885			1,961,163			6,571,629
Receivables for:
Capital stock sold		24,825,004			2,779,271			939,337			4,333,853			645,801
Dividends and interest		7,040,003			378,665			239,951			396,047			3,812,788
Investments sold		3,778,056			1,155,246			801,530			240,063			6,486,685
Gross unrealized appreciation on:
Forward currency contracts		—			—			—			468,412			1,007,664
Swap agreements		—			—			—			53,152			159,245
Premium for swap agreements purchased		—			—			—			20,373			46,592
Total assets		15,991,825,651			434,900,381			240,470,797			131,492,424			295,851,145
LIABILITIES
Payables for:
Due to custodian		5,726,290			15,046			31,290			—			820,000
Management fees		13,223,736			345,344			173,594			67,708			163,933
Accrued distribution fees		546,481			19,118			7,588			167			236
Accrued directors’ fees		24,077			602			300			174			393
Capital stock redeemed		27,399,123			1,255,030			258,204			1,694,682			13,563
Investments purchased		2,036,858			32,486			781,634			3,521,604			6,731,514
Dividends		—			—			—			—			38,938
Gross unrealized depreciation on:
Forward currency contracts		—			—			—			225,182			421,441
Swap agreements		—			—			—			39,905			23,581
Written options, at value		—			—			—			26,458			291,035
Other accrued expenses and payables		1,854,301			109,811			58,154			39,836			45,638
Total liabilities		50,810,866			1,777,437			1,310,764			5,615,716			8,550,272
Net assets	$	15,941,014,785		$	433,122,944		$	239,160,033		$	125,876,708		$	287,300,873
NET ASSETS
Paid in capital	$	14,296,163,753		$	461,307,983		$	239,111,262		$	122,260,511		$	270,338,717
Undistributed (distributions in excess of) net investment income		(11,418,208	)		(1,570,471	)		(564,690	)		(104,364	)		23,729
Accumulated net realized gain (loss)		(189,881,707	)		(34,217,539	)		(14,228,180	)		(1,979,026	)		1,337,878
Net unrealized appreciation (depreciation) on:
Investments		1,846,187,745			7,605,661			14,841,545			5,458,633			15,114,880
Foreign currency and forward currency contracts		(36,798	)		(2,690	)		96			248,872			582,817
Swap agreements		—			—			—			13,247			135,664
Written options		—			—			—			(21,165	)		(232,812	)
Net assets	$	15,941,014,785		$	433,122,944		$	239,160,033		$	125,876,708		$	287,300,873
Institutional Shares
Net assets	$	13,315,172,022		$	339,771,117		$	201,512,338		$	125,018,772		$	286,162,693
Shares of capital stock outstanding*		681,320,058			27,400,813			17,598,261			12,889,497			26,369,893
Net asset value, offering and redemption price per share	$	19.54		$	12.40		$	11.45		$	9.70		$	10.85
Open Shares
Net assets	$	2,625,842,763		$	93,351,827		$	37,647,695		$	857,936		$	1,138,180
Shares of capital stock outstanding*		131,100,773			7,527,776			3,291,977			88,344			104,581
Net asset value, offering and redemption price per share	$	20.03		$	12.40		$	11.44		$	9.71		$	10.88
Cost of investments in securities	$	14,103,958,388		$	422,698,580		$	222,653,549		$	118,344,843		$	262,005,861
Cost of foreign currency	$	6,045,836		$	269,437		$	994,555		$	1,953,447		$	6,557,823

Annual Report  117

December 31, 2012	Lazard U.S. Realty Income Portfolio		Lazard U.S. Realty Equity Portfolio
ASSETS
Investments in securities and purchased options, at value	$	105,175,219	$	67,567,734
Cash		7,526		—
Foreign currency		—		—
Receivables for:
Capital stock sold		2,983,576		695,061
Dividends and interest		996,911		188,553
Investments sold		—		—
Amount due from Investment Manager (Note 3)		—		—
Premium for swap agreements purchased		—		—
Gross unrealized appreciation on:
Forward currency contracts		—		—
Swap agreements		—		—
Deferred offering costs (Note 2(i))		—		—
Total assets		109,163,232		68,451,348
LIABILITIES
Payables for:
Due to custodian		—		443
Management fees		58,787		15,217
Accrued distribution fees		9,033		12,829
Accrued directors’ fees		135		97
Capital stock redeemed		21,254		211,809
Investments purchased		1,634,278		—
Dividends		—		—
Gross unrealized depreciation on:
Forward currency contracts		—		—
Swap agreements		—		—
Line of credit outstanding		—		—
Other accrued expenses and payables		22,223		29,569
Total liabilities		1,745,710		269,964
Net assets	$	107,417,522	$	68,181,384
NET ASSETS
Paid in capital	$	100,835,561	$	65,549,249
Undistributed (distributions in excess of) net investment income		—		—
Accumulated net realized gain (loss)		998,909		146,769
Net unrealized appreciation (depreciation) on:
Investments		5,583,052		2,485,366
Foreign currency and forward currency contracts		—		—
Swap agreements		—		—
Net assets	$	107,417,522	$	68,181,384
Institutional Shares
Net assets	$	52,024,235	$	2,794,212
Shares of capital stock outstanding*		6,073,485		160,617
Net asset value, offering and redemption price per share	$	8.57	$	17.40
Open Shares
Net assets	$	55,393,287	$	65,387,172
Shares of capital stock outstanding*		6,474,598		3,747,565
Net asset value, offering and redemption price per share	$	8.56	$	17.45
Cost of investments in securities	$	99,592,167	$	65,082,368
Cost of foreign currency	$	—	$	—

* $0.001 par value, 3,400,000,000 shares authorized for the Portfolios in total.

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

118  Annual Report

	Lazard International Realty Equity Portfolio			Lazard U.S. High Yield Portfolio			Lazard U.S. Municipal Portfolio			Lazard Global Fixed Income Portfolio			Lazard Capital Allocator Opportunistic Strategies Portfolio
ASSETS
Investments in securities and purchased options, at value	$	4,996,293		$	186,067,219		$	19,484,603		$	4,991,464		$	227,683,950
Cash		4,365			—			—			—			348,947
Foreign currency		—			—			—			27,227			—
Receivables for:
Capital stock sold		5,000			35,299			—			2,000			74,989
Dividends and interest		6,928			3,067,347			255,220			90,308			330,925
Investments sold		34,479			—			—			98			656
Amount due from Investment Manager (Note 3)		3,368			—			9,092			22,595			—
Premium for swap agreements purchased		—			—			—			—			12,135
Gross unrealized appreciation on:
Forward currency contracts		—			—			—			17,071			—
Swap agreements		—			—			—			—			72,576
Deferred offering costs (Note 2(i))		—			—			—			30,875			—
Total assets		5,050,433			189,169,865			19,748,915			5,181,638			228,524,178
LIABILITIES
Payables for:
Due to custodian		—			—			—			—			—
Management fees		—			57,144			—			—			177,665
Accrued distribution fees		425			896			4			12			660
Accrued directors’ fees		7			294			35			8			359
Capital stock redeemed		3,170			132,914			3,379			—			15,309
Investments purchased		51			1,853,369			—			37,208			115,908
Dividends		—			109,177			4,762			5			—
Gross unrealized depreciation on:
Forward currency contracts		—			—			—			136,358			30,006
Swap agreements		—			—			—			—			83,897
Line of credit outstanding		30,000			—			—			—			—
Other accrued expenses and payables		10,538			18,779			10,361			139,306			18,722
Total liabilities		44,191			2,172,573			18,541			312,897			442,526
Net assets	$	5,006,242		$	186,997,292		$	19,730,374		$	4,868,741		$	228,081,652
NET ASSETS
Paid in capital	$	4,144,710		$	184,666,025		$	19,360,615		$	4,760,975		$	222,859,511
Undistributed (distributions in excess of) net investment income		(96,151	)		(109,177	)		(300	)		56,183			11,254
Accumulated net realized gain (loss)		48,517			(7,647,276	)		146,457			—			384,556
Net unrealized appreciation (depreciation) on:
Investments		909,162			10,087,720			223,602			169,358			4,867,748
Foreign currency and forward currency contracts		4			—			—			(117,775	)		(30,096	)
Swap agreements		—			—			—			—			(11,321	)
Net assets	$	5,006,242		$	186,997,292		$	19,730,374		$	4,868,741		$	228,081,652
Institutional Shares
Net assets	$	2,796,885		$	182,748,712		$	19,726,202		$	4,813,612		$	224,982,420
Shares of capital stock outstanding*		164,688			36,441,591			1,913,691			473,673			22,422,647
Net asset value, offering and redemption price per share	$	16.98		$	5.01		$	10.31		$	10.16		$	10.03
Open Shares
Net assets	$	2,209,357		$	4,248,580		$	4,172		$	55,129		$	3,099,232
Shares of capital stock outstanding*		130,199			842,613			405			5,426			308,937
Net asset value, offering and redemption price per share	$	16.97		$	5.04		$	10.31		$	10.16		$	10.03
Cost of investments in securities	$	4,087,131		$	175,979,499		$	19,261,001		$	4,822,106		$	222,816,202
Cost of foreign currency	$	—		$	—		$	—		$	27,110		$	—

Annual Report  119

The Lazard Funds, Inc. Statements of Operations

For the Year Ended December 31, 2012	Lazard U.S. Equity Concentrated Portfolio			Lazard U.S. Strategic Equity Portfolio
Investment Income
Income
Dividends	$	1,599,446		$	1,744,394
Interest		67			3
Total investment income*		1,599,513			1,744,397
Expenses
Management fees (Note 3)		389,863			567,107
Custodian fees		61,630			58,652
Distribution fees (Open Shares)		1,046			22,091
Shareholders’ services		26,338			29,083
Shareholders’ reports		17,169			5,723
Administration fees		61,118			66,233
Directors’ fees and expenses		16,357			2,975
Professional services		60,862			49,616
Registration fees		29,488			28,888
Shareholders’ meeting		48,445			—
Other†		13,907			6,087
Total gross expenses		726,223			836,455
Management fees waived and expenses reimbursed		(199,946	)		(202,311	)
Administration fees waived		(7,813	)		—
Expense reductions (Note 2(k))		(161	)		(20	)
Total net expenses		518,303			634,124
Net investment income		1,081,210			1,110,273
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments**		1,248,579			8,297,888
Foreign currency and forward currency contracts		—			—
Net change in unrealized appreciation (depreciation) on:
Investments		6,593,427			1,229,399
Foreign currency and forward currency contracts		—			—
Net realized and unrealized gain on investments, foreign currency and forward currency contracts		7,842,006			9,527,287
Net increase in net assets resulting from operations	$	8,923,216		$	10,637,560
* Net of foreign withholding taxes of	$	1,947		$	—
** Net of foreign capital gains taxes of	$	—		$	—
† Includes interest on line of credit of	$	3		$	24

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

120  Annual Report

For the Year Ended December 31, 2012	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	$	1,520,303	$	3,122,903		$	5,184,102		$	3,233,504		$	207,656
Interest		14		683			93			364			29
Total investment income*		1,520,317		3,123,586			5,184,195			3,233,868			207,685
Expenses
Management fees (Note 3)		800,884		1,826,602			1,125,894			850,462			62,905
Custodian fees		71,627		78,627			77,253			108,540			94,240
Distribution fees (Open Shares)		115,695		46,353			27,209			51,896			6,587
Shareholders’ services		29,136		31,868			30,807			30,000			26,370
Shareholders’ reports		11,044		17,077			15,395			11,122			4,573
Administration fees		71,558		98,737			74,926			72,824			51,487
Directors’ fees and expenses		3,935		8,861			4,657			4,138			270
Professional services		50,273		52,643			49,346			49,141			47,207
Registration fees		13,453		27,487			48,390			29,304			26,738
Shareholders’ meeting		—		—			—			—			—
Other†		8,686		17,353			8,441			7,609			4,160
Total gross expenses		1,176,291		2,205,608			1,462,318			1,215,036			324,537
Management fees waived and expenses reimbursed		—		—			—			—			(231,523	)
Administration fees waived		—		—			—			—			—
Expense reductions (Note 2(k))		—		(46	)		(2	)		(27	)		—
Total net expenses		1,176,291		2,205,562			1,462,316			1,215,009			93,014
Net investment income		344,026		918,024			3,721,879			2,018,859			114,671
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency and Forward Currency Contracts
Net realized gain (loss) on:
Investments**		7,992,414		13,525,692			3,511,731			4,165,439			57,708
Foreign currency and forward currency contracts		—		—			1,151,436			(69,591	)		(4,728	)
Net change in unrealized appreciation (depreciation) on:
Investments		824,069		17,023,607			15,612,493			17,834,244			1,325,069
Foreign currency and forward currency contracts		—		—			(2,996,308	)		2,814			163
Net realized and unrealized gain on investments, foreign currency and forward currency contracts		8,816,483		30,549,299			17,279,352			21,932,906			1,378,212
Net increase in net assets resulting from operations	$	9,160,509	$	31,467,323		$	21,001,231		$	23,951,765		$	1,492,883
* Net of foreign withholding taxes of	$	—	$	—		$	607,774		$	291,678		$	18,659
** Net of foreign capital gains taxes of	$	—	$	—		$	—		$	11		$	—
† Includes interest on line of credit of	$	1,473	$	2,083		$	141		$	367		$	171

Annual Report  121

For the Year Ended December 31, 2012	Lazard International Strategic Equity Portfolio			Lazard International Small Cap Equity Portfolio
Investment Income
Income
Dividends	$	17,972,325		$	1,514,828
Interest		2,799			—
Total investment income*		17,975,124			1,514,828
Expenses
Management fees (Note 3)		6,014,249			450,937
Custodian fees		313,060			79,961
Distribution fees (Open Shares)		442,039			44,239
Shareholders’ services		62,928			28,978
Shareholders’ reports		97,146			12,093
Administration fees		208,126			62,144
Directors’ fees and expenses		29,202			2,207
Professional services		62,486			51,008
Registration fees		58,289			26,038
Amortization of offering costs (Note 2(i))		—			—
Other†		58,075			5,645
Total gross expenses		7,345,600			763,250
Management fees waived and expenses reimbursed		—			(30,622	)
Expense reductions (Note 2(k))		—			(58	)
Total net expenses		7,345,600			732,570
Net investment income		10,629,524			782,258
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments**		5,475,596			2,362,655
Foreign currency and forward currency contracts		(466,980	)		(18,688	)
Options		—			—
Swap agreements		—			—
Net change in unrealized appreciation (depreciation) on:
Investments***		179,041,433			8,863,504
Foreign currency and forward currency contracts		(5,666	)		562
Swap agreements		—			—
Written options		—			—
Net realized and unrealized gain on investments, foreign currency, forward currency contracts, options and swap agreements		184,044,383			11,208,033
Net increase in net assets resulting from operations	$	194,673,907		$	11,990,291
* Net of foreign withholding taxes of	$	1,095,059		$	127,887
** Net of foreign capital gains taxes of	$	4,105		$	—
*** Includes net change in unrealized foreign capital gains taxes of	$	—		$	—
† Includes interest on line of credit of	$	155		$	138

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

122  Annual Report

For the Year Ended December 31, 2012	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
Investment Income
Income
Dividends	$	448,351,476		$	6,699,168		$	3,796,206		$	1,006,491		$	—
Interest		69,688			—			1,011			854,130			11,294,911
Total investment income*		448,421,164			6,699,168			3,797,217			1,860,621			11,294,911
Expenses
Management fees (Note 3)		151,690,449			3,423,720			1,670,264			806,772			1,613,547
Custodian fees		9,534,742			338,091			234,053			253,509			221,824
Distribution fees (Open Shares)		6,701,565			196,950			76,088			1,643			1,942
Shareholders’ services		2,293,090			84,019			76,038			27,576			27,524
Shareholders’ reports		1,689,634			106,099			31,386			5,850			5,803
Administration fees		1,664,815			118,367			82,027			66,043			91,601
Directors’ fees and expenses		556,210			12,483			5,813			2,929			7,328
Professional services		329,756			53,252			55,786			59,147			59,728
Registration fees		71,542			49,090			35,806			35,228			29,488
Amortization of offering costs (Note 2(i))		—			—			—			12,599			7,152
Other†		459,022			24,180			15,488			10,050			20,182
Total gross expenses		174,990,825			4,406,251			2,282,749			1,281,346			2,086,119
Management fees waived and expenses reimbursed		—			—			(39,603	)		(230,588	)		(66,877	)
Expense reductions (Note 2(k))		—			(137	)		—			—			—
Total net expenses		174,990,825			4,406,114			2,243,146			1,050,758			2,019,242
Net investment income		273,430,339			2,293,054			1,554,071			809,863			9,275,669
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments**		413,129,688			(26,434,195	)		(9,327,902	)		(869,434	)		7,501,459
Foreign currency and forward currency contracts		(8,156,326	)		(254,380	)		(87,105	)		484,847			1,150,730
Options		—			—			—			17,853			(244,896	)
Swap agreements		—			—			—			(239,973	)		(6,687	)
Net change in unrealized appreciation (depreciation) on:
Investments***		2,319,628,137			66,219,570			33,410,707			9,930,458			15,920,158
Foreign currency and forward currency contracts		164,910			(714	)		3,466			240,353			702,475
Swap agreements		—			—			—			3,939			119,680
Written options		—			—			—			(42,153	)		(300,587	)
Net realized and unrealized gain on investments, foreign currency, forward currency contracts, options and swap agreements		2,724,766,409			39,530,281			23,999,166			9,525,890			24,842,332
Net increase in net assets resulting from operations	$	2,998,196,748		$	41,823,335		$	25,553,237		$	10,335,753		$	34,118,001
* Net of foreign withholding taxes of	$	53,738,419		$	545,551		$	404,039		$	104,152		$	80,743
** Net of foreign capital gains taxes of	$	32,562		$	—		$	—		$	—		$	—
*** Includes net change in unrealized foreign capital gains taxes of	$	—		$	13,516		$	—		$	—		$	—
† Includes interest on line of credit of	$	4,879		$	110		$	—		$	—		$	144

Annual Report  123

For the Year Ended December 31, 2012	Lazard U.S. Realty Income Portfolio			Lazard U.S. Realty Equity Portfolio
Investment Income
Income
Interest	$	62,353		$	—
Dividends		4,281,625			1,249,667
Total investment income*		4,343,978			1,249,667
Expenses
Management fees (Note 3)		447,491			309,718
Custodian fees		47,512			60,756
Distribution fees (Open Shares)		53,994			92,985
Shareholders’ services		35,898			67,508
Shareholders’ reports		12,630			16,480
Administration fees		61,944			57,722
Directors’ fees and expenses		2,183			1,409
Professional services		47,588			46,081
Registration fees		38,698			41,419
Amortization of offering costs (Note 2(i))		—			—
Other†		8,311			7,215
Total gross expenses		756,249			701,293
Management fees waived and expenses reimbursed		(3,268	)		(118,194	)
Administration and shareholders’ services fees waived		(3,580	)		(8,226	)
Expense reductions (Note 2(k))		—			—
Total net expenses		749,401			574,873
Net investment income		3,594,577			674,794
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments		2,753,485			1,726,093
Foreign currency and forward currency contracts		—			—
Options		—			(159,797	)
Swap agreements		—			—
Net change in unrealized appreciation (depreciation) on:
Investments		4,495,301			2,353,234
Foreign currency and forward currency contracts		—			—
Swap agreements		—			—
Net realized and unrealized gain on investments, foreign currency, forward currency contracts, options and swap agreements		7,248,786			3,919,530
Net increase in net assets resulting from operations	$	10,843,363		$	4,594,324
* Net of foreign withholding taxes of	$	—		$	—
† Includes interest on line of credit of	$	—		$	—

(a) From Portfolio’s commencement of operations on March 30, 2012.

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

124  Annual Report

For the Year Ended December 31, 2012	Lazard International Realty Equity Portfolio			Lazard U.S. High Yield Portfolio			Lazard U.S. Municipal Portfolio			Lazard Global Fixed Income Portfolio (a)			Lazard Capital Allocator Opportunistic Strategies Portfolio
Investment Income
Income
Interest	$	—		$	13,034,051		$	319,614		$	97,950		$	3
Dividends		112,353			—			—			—			5,451,237
Total investment income*		112,353			13,034,051			319,614			97,950			5,451,240
Expenses
Management fees (Note 3)		35,873			992,709			46,025			16,123			2,537,917
Custodian fees		50,038			78,735			54,325			51,573			70,608
Distribution fees (Open Shares)		4,096			11,552			93			66			10,986
Shareholders’ services		26,125			28,495			27,469			22,100			36,814
Shareholders’ reports		(2,853	)		5,868			3,153			3,447			11,654
Administration fees		50,794			86,068			53,562			36,813			100,628
Directors’ fees and expenses		150			6,628			680			118			9,331
Professional services		44,989			50,396			47,400			49,454			56,097
Registration fees		26,464			28,988			28,210			9,901			33,189
Amortization of offering costs (Note 2(i))		—			—			6,998			94,336			—
Other†		1,799			9,877			4,918			4,659			10,437
Total gross expenses		237,475			1,299,316			272,833			288,590			2,877,661
Management fees waived and expenses reimbursed		(156,071	)		(292,518	)		(180,327	)		(237,268	)		(274,403	)
Administration and shareholders’ services fees waived		(24,705	)		—			(18,750	)		(25,447	)		—
Expense reductions (Note 2(k))		(1	)		(132	)		(6	)		—			(1,326	)
Total net expenses		56,698			1,006,666			73,750			25,875			2,601,932
Net investment income		55,655			12,027,385			245,864			72,075			2,849,308
Net Realized and Unrealized Gain (Loss) on Investments, Foreign Currency, Forward Currency Contracts, Options and Swap Agreements
Net realized gain (loss) on:
Investments		197,638			(812,130	)		299,763			(4,934	)		4,718,916
Foreign currency and forward currency contracts		(1,232	)		—			—			17,078			478,960
Options		—			—			—			—			(4,579,224	)
Swap agreements		—			—			—			—			3,358,598
Net change in unrealized appreciation (depreciation) on:
Investments		1,145,036			9,188,204			(106,874	)		169,358			15,812,814
Foreign currency and forward currency contracts		62			—			—			(117,775	)		(197,670	)
Swap agreements		—			—			—			—			(1,200,769	)
Net realized and unrealized gain on investments, foreign currency, forward currency contracts, options and swap agreements		1,341,504			8,376,074			192,889			63,727			18,391,625
Net increase in net assets resulting from operations	$	1,397,159		$	20,403,459		$	438,753		$	135,802		$	21,240,933
* Net of foreign withholding taxes of	$	8,424		$	—		$	—		$	20		$	—
† Includes interest on line of credit of	$	8		$	423		$	—		$	5		$	—

Annual Report  125

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

	Lazard U.S. Equity Concentrated Portfolio						Lazard U.S. Strategic Equity Portfolio
	Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2012			Year Ended December 31, 2011
Increase (Decrease) in Net Assets
Operations
Net investment income	$	1,081,210		$	204,617		$	1,110,273		$	954,276
Net realized gain (loss) on investments, foreign currency and forward currency contracts		1,248,579			364,274			8,297,888			5,688,163
Net change in unrealized appreciation (depreciation) on investments, foreign currency and forward currency contracts		6,593,427			(1,023,366	)		1,229,399			(4,935,431	)
Net increase (decrease) in net assets resulting from operations		8,923,216			(454,475	)		10,637,560			1,707,008
Distributions to shareholders
From net investment income
Institutional Shares		(1,071,583	)		(198,163	)		(1,706,939	)		(576,867	)
Open Shares		(4,154	)		(4,595	)		(147,376	)		(58,180	)
From net realized gains
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Net decrease in net assets resulting from distributions		(1,075,737	)		(202,758	)		(1,854,315	)		(635,047	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		118,724,713			1,193,666			14,377,525			6,937,102
Open Shares		393,082			89,277			2,458,786			4,340,833
Net proceeds from reinvestment of distributions
Institutional Shares		847,541			185,473			1,686,330			567,917
Open Shares		4,153			4,156			128,502			52,247
Cost of shares redeemed
Institutional Shares		(17,085,989	)		(2,693,580	)		(12,717,388	)		(15,409,162	)
Open Shares		(82,527	)		(62,855	)		(3,706,443	)		(6,074,788	)
Net increase (decrease) in net assets from capital stock transactions		102,800,973			(1,283,863	)		2,227,312			(9,585,851	)
Redemption fees (Note 2(l))
Institutional Shares		1,498			792			433			3
Open Shares		58			27			—			—
Net increase in net assets from redemption fees		1,556			819			433			3
Total increase (decrease) in net assets		110,650,008			(1,940,277	)		11,010,990			(8,513,887	)
Net assets at beginning of year		11,419,975			13,360,252			72,717,049			81,230,936
Net assets at end of year*	$	122,069,983		$	11,419,975		$	83,728,039		$	72,717,049
* Includes undistributed (distributions in excess of) net investment income of	$	(9,657	)	$	(15,130	)	$	210,232		$	954,274
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		1,201,733			1,367,217			7,111,530			7,940,671
Shares sold		11,697,734			125,073			1,465,424			747,369
Shares issued to shareholders from reinvestment of distributions		79,136			20,226			170,983			68,341
Shares redeemed		(1,640,253	)		(310,783	)		(1,296,028	)		(1,644,851	)
Net increase (decrease)		10,136,617			(165,484	)		340,379			(829,141	)
Shares outstanding at end of year		11,338,350			1,201,733			7,451,909			7,111,530
Open Shares
Shares outstanding at beginning of year		33,507			30,610			937,896			1,117,356
Shares sold		38,357			9,117			254,087			493,469
Shares issued to shareholders from reinvestment of distributions		386			450			13,013			6,273
Shares redeemed		(8,107	)		(6,670	)		(376,815	)		(679,202	)
Net increase (decrease)		30,636			2,897			(109,715	)		(179,460	)
Shares outstanding at end of year		64,143			33,507			828,181			937,896

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

126   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, 2012			Year Ended December 31, 2011			Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2012			Year Ended December 31, 2011
Increase (Decrease) in Net Assets
Operations
Net investment income	$	344,026		$	496,207		$	918,024		$	99,519		$	3,721,879		$	5,612,784
Net realized gain (loss) on investments, foreign currency and forward currency contracts		7,992,414			20,582,485			13,525,692			15,518,519			4,663,167			(4,444,075	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency and forward currency contracts		824,069			(29,275,062	)		17,023,607			(35,330,896	)		12,616,185			(10,010,289	)
Net increase (decrease) in net assets resulting from operations		9,160,509			(8,196,370	)		31,467,323			(19,712,858	)		21,001,231			(8,841,580	)
Distributions to shareholders
From net investment income
Institutional Shares		(93,028	)		(289,121	)		(440,159	)		—			(3,885,197	)		(2,943,345	)
Open Shares		(25,552	)		(10,886	)		—			—			(330,133	)		(44,386	)
From net realized gains
Institutional Shares		—			—			(7,126,645	)		(16,582,657	)		(2,328,587	)		(2,415,101	)
Open Shares		—			—			(429,062	)		(2,011,539	)		(237,215	)		(194,462	)
Net decrease in net assets resulting from distributions		(118,580	)		(300,007	)		(7,995,866	)		(18,594,196	)		(6,781,132	)		(5,597,294	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		11,992,786			36,120,152			136,617,944			61,357,231			40,118,611			213,298,092
Open Shares		9,008,006			16,367,559			4,413,215			11,124,812			5,003,640			10,292,625
Net proceeds from reinvestment of distributions Institutional Shares		72,879			217,196			7,492,237			16,247,181			5,695,999			5,050,814
Open Shares		23,280			10,017			400,942			1,937,041			559,340			234,195
Cost of shares redeemed
Institutional Shares		(78,932,556	)		(66,277,487	)		(42,600,983	)		(115,744,067	)		(38,132,595	)		(215,684,733	)
Open Shares		(22,699,523	)		(30,331,603	)		(11,037,496	)		(10,055,892	)		(2,437,008	)		(1,762,415	)
Net increase (decrease) in net assets from capital stock transactions		(80,535,128	)		(43,894,166	)		95,285,859			(35,133,694	)		10,807,987			11,428,578
Redemption fees (Note 2(l))
Institutional Shares		27			1,396			15			662			626			10,079
Open Shares		180			861			80			701			226			237
Net increase in net assets from redemption fees		207			2,257			95			1,363			852			10,316
Total increase (decrease) in net assets		(71,492,992	)		(52,388,286	)		118,757,411			(73,439,385	)		25,028,938			(2,999,980	)
Net assets at beginning of year		143,787,818			196,176,104			187,081,534			260,520,919			112,798,276			115,798,256
Net assets at end of year*	$	72,294,826		$	143,787,818		$	305,838,945		$	187,081,534		$	137,827,214		$	112,798,276
* Includes undistributed (distributions in excess of) net investment income of	$	178,968		$	54,669		$	229,350		$	204,383		$	(629,620	)	$	247,112
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		7,726,268			10,039,112			14,128,698			16,413,981			10,683,008			11,214,996
Shares sold		945,652			2,844,927			10,509,382			4,644,003			3,865,052			20,313,345
Shares issued to shareholders from reinvestment of distributions		5,864			18,360			567,164			1,387,462			534,797			504,434
Shares redeemed		(6,216,765	)		(5,176,131	)		(3,400,479	)		(8,316,748	)		(3,663,732	)		(21,349,767	)
Net increase (decrease)		(5,265,249	)		(2,312,844	)		7,676,067			(2,285,283	)		736,117			(531,988	)
Shares outstanding at end of year		2,461,019			7,726,268			21,804,765			14,128,698			11,419,125			10,683,008
Open Shares
Shares outstanding at beginning of year		4,439,926			5,586,393			1,739,728			1,516,112			854,515			11,448
Shares sold		731,390			1,319,630			352,470			781,245			486,297			998,492
Shares issued to shareholders from reinvestment of distributions		1,942			858			31,226			169,767			52,376			23,929
Shares redeemed		(1,814,909	)		(2,466,955	)		(886,235	)		(727,396	)		(234,153	)		(179,354	)
Net increase (decrease)		(1,081,577	)		(1,146,467	)		(502,539	)		223,616			304,520			843,067
Shares outstanding at end of year		3,358,349			4,439,926			1,237,189			1,739,728			1,159,035			854,515

Annual Report  127

	Lazard International Equity Portfolio						Lazard International Equity Select Portfolio
	Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2012			Year Ended December 31, 2011
Increase (Decrease) in Net Assets
Operations
Net investment income	$	2,018,859		$	2,318,637		$	114,671		$	105,122
Net realized gain on investments and foreign currency		4,095,848			11,733,922			52,980			432,033
Net change in unrealized appreciation (depreciation) on investments and foreign currency		17,837,058			(21,019,680	)		1,325,232			(981,115	)
Net increase (decrease) in net assets resulting from operations		23,951,765			(6,967,121	)		1,492,883			(443,960	)
Distributions to shareholders
From net investment income
Institutional Shares		(3,557,160	)		(2,126,498	)		(142,879	)		(107,555	)
Open Shares		(681,741	)		(635,263	)		(56,933	)		(74,627	)
From net realized gains
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Net decrease in net assets resulting from distributions		(4,238,901	)		(2,761,761	)		(199,812	)		(182,182	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		29,943,240			12,560,444			3,478,816			2,016,281
Open Shares		9,963,361			9,794,122			427,582			506,572
Net proceeds from reinvestment of distributions
Institutional Shares		3,072,022			1,828,974			105,790			68,756
Open Shares		439,254			500,209			54,482			71,302
Cost of shares redeemed
Institutional Shares		(26,896,764	)		(48,236,742	)		(1,385,837	)		(842,321	)
Open Shares		(7,117,889	)		(17,295,953	)		(497,811	)		(882,749	)
Net increase (decrease) in net assets from capital stock transactions		9,403,224			(40,848,946	)		2,183,022			937,841
Redemption fees (Note 2(l))
Institutional Shares		1,914			2,419			604			434
Open Shares		83			505			48			—
Net increase in net assets from redemption fees		1,997			2,924			652			434
Total increase (decrease) in net assets		29,118,085			(50,574,904	)		3,476,745			312,133
Net assets at beginning of year		105,579,365			156,154,269			6,982,252			6,670,119
Net assets at end of year*	$	134,697,450		$	105,579,365		$	10,458,997		$	6,982,252
* Includes undistributed (distributions in excess of) net investment income of	$	(47,732	)	$	2,229,799		$	20,553		$	66,486
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		6,956,141			9,233,358			629,470			452,165
Shares sold		2,165,534			997,694			427,257			272,980
Shares issued to shareholders from reinvestment of distributions		217,033			141,891			12,880			9,279
Shares redeemed		(1,958,147	)		(3,416,802	)		(180,288	)		(104,954	)
Net increase (decrease)		424,420			(2,277,217	)		259,849			177,305
Shares outstanding at end of year		7,380,561			6,956,141			889,319			629,470
Open Shares
Shares outstanding at beginning of year		1,485,123			2,060,873			341,991			381,274
Shares sold		711,367			724,217			52,054			62,633
Shares issued to shareholders from reinvestment of distributions		30,763			38,448			6,698			9,583
Shares redeemed		(513,632	)		(1,338,415	)		(63,631	)		(111,499	)
Net increase (decrease)		228,498			(575,750	)		(4,879	)		(39,283	)
Shares outstanding at end of year		1,713,621			1,485,123			337,112			341,991

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

128  Annual Report

	Lazard International Strategic Equity Portfolio						Lazard International Small Cap Equity Portfolio						Lazard Emerging Markets Equity Portfolio
	Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2012			Year Ended December 31, 2011
Increase (Decrease) in Net Assets
Operations
Net investment income	$	10,629,524		$	6,554,430		$	782,258		$	1,014,484		$	273,430,339		$	394,340,222
Net realized gain on investments and foreign currency		5,008,616			9,841,271			2,343,967			1,709,635			404,973,362			1,028,913,203
Net change in unrealized appreciation (depreciation) on investments and foreign currency		179,035,767			(61,915,373	)		8,864,066			(12,142,804	)		2,319,793,047			(4,571,764,271	)
Net increase (decrease) in net assets resulting from operations		194,673,907			(45,519,672	)		11,990,291			(9,418,685	)		2,998,196,748			(3,148,510,846	)
Distributions to shareholders
From net investment income
Institutional Shares		(8,123,755	)		(5,917,381	)		(1,259,891	)		(782,430	)		(233,749,133	)		(393,452,725	)
Open Shares		(2,129,693	)		(521,056	)		(406,288	)		(325,694	)		(37,813,360	)		(76,508,524	)
From net realized gains
Institutional Shares		—			—			—			—			(419,249,109	)		(299,768,775	)
Open Shares		—			—			—			—			(80,701,164	)		(72,975,928	)
Net decrease in net assets resulting from distributions		(10,253,448	)		(6,438,437	)		(1,666,179	)		(1,108,124	)		(771,512,766	)		(842,705,952	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		386,577,221			133,146,494			1,758,201			2,712,178			2,561,523,905			2,535,357,071
Open Shares		248,255,833			41,859,596			2,705,153			2,913,697			404,264,337			604,504,647
Net proceeds from reinvestment of distributions
Institutional Shares		6,962,916			4,887,709			1,233,303			314,338			564,652,360			562,336,863
Open Shares		2,036,931			516,732			391,808			310,678			111,916,205			136,437,018
Cost of shares redeemed
Institutional Shares		(74,579,297	)		(13,586,712	)		(3,690,984	)		(4,218,322	)		(2,525,025,523	)		(3,596,569,693	)
Open Shares		(42,953,515	)		(18,325,098	)		(6,316,631	)		(7,000,181	)		(1,037,348,544	)		(1,365,191,505	)
Net increase (decrease) in net assets from capital stock transactions		526,300,089			148,498,721			(3,919,150	)		(4,967,612	)		79,982,740			(1,123,125,599	)
Redemption fees (Note 2(l))
Institutional Shares		1,650			194			34			31			106,944			176,642
Open Shares		7,292			870			4			273			38,994			75,956
Net increase in net assets from redemption fees		8,942			1,064			38			304			145,938			252,598
Total increase (decrease) in net assets		710,729,490			96,541,676			6,405,000			(15,494,117	)		2,306,812,660			(5,114,089,799	)
Net assets at beginning of year		498,690,867			402,149,191			56,623,510			72,117,627			13,634,202,125			18,748,291,924
Net assets at end of year*	$	1,209,420,357		$	498,690,867		$	63,028,510		$	56,623,510		$	15,941,014,785		$	13,634,202,125
* Includes undistributed (distributions in excess of) net investment income of	$	1,257,090		$	1,352,099		$	(67,900	)	$	828,360		$	(11,418,208	)	$	(26,686,008	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		46,042,276			33,503,311			5,682,315			5,804,978			648,784,125			668,512,736
Shares sold		36,524,263			13,344,912			229,753			372,258			136,324,320			126,686,682
Shares issued to shareholders from reinvestment of distributions		605,870			517,072			160,597			43,719			29,516,846			33,468,597
Shares redeemed		(6,884,882	)		(1,323,019	)		(489,327	)		(538,640	)		(133,305,233	)		(179,883,890	)
Net increase (decrease)		30,245,251			12,538,965			(98,977	)		(122,663	)		32,535,933			(19,728,611	)
Shares outstanding at end of year		76,287,527			46,042,276			5,583,338			5,682,315			681,320,058			648,784,125
Open Shares
Shares outstanding at beginning of year		6,637,650			4,312,256			2,586,982			3,070,770			158,774,554			188,734,763
Shares sold		23,889,730			4,052,901			365,819			370,715			20,940,411			29,261,660
Shares issued to shareholders from reinvestment of distributions		176,604			54,762			50,866			43,090			5,707,099			7,994,866
Shares redeemed		(3,950,727	)		(1,782,269	)		(840,448	)		(897,593	)		(54,321,291	)		(67,216,735	)
Net increase (decrease)		20,115,607			2,325,394			(423,763	)		(483,788	)		(27,673,781	)		(29,960,209	)
Shares outstanding at end of year		26,753,257			6,637,650			2,163,219			2,586,982			131,100,773			158,774,554

Annual Report  129

	Lazard Developing Markets Equity Portfolio						Lazard Emerging Markets Equity Blend Portfolio
	Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2012			Year Ended December 31, 2011
Increase (Decrease) in Net Assets
Operations
Net investment income	$	2,293,054		$	768,811		$	1,554,071		$	1,302,934
Net realized gain (loss) on investments, foreign currency, forward currency contracts, options and swap agreements		(26,688,575	)		218,300			(9,415,007	)		(5,213,592	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts, options and swap agreements		66,218,856			(75,233,479	)		33,414,173			(20,917,779	)
Net increase (decrease) in net assets resulting from operations		41,823,335			(74,246,368	)		25,553,237			(24,828,437	)
Distributions to shareholders
From net investment income
Institutional Shares		(2,990,604	)		—			(1,818,322	)		(696,096	)
Open Shares		(543,087	)		—			(234,422	)		(103,924	)
From net realized gains
Institutional Shares		—			(7,111,703	)		—			(434,860	)
Open Shares		—			(2,840,044	)		—			(76,627	)
Net decrease in net assets resulting from distributions		(3,533,691	)		(9,951,747	)		(2,052,744	)		(1,311,507	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		232,206,374			217,433,902			126,047,840			94,705,788
Open Shares		69,347,007			82,229,202			19,150,166			21,900,003
Net proceeds from reinvestment of distributions
Institutional Shares		2,295,074			6,399,337			1,648,749			1,011,504
Open Shares		531,153			2,738,730			224,500			154,425
Cost of shares redeemed
Institutional Shares		(83,942,317	)		(78,772,507	)		(30,534,803	)		(43,724,613	)
Open Shares		(49,472,367	)		(96,382,546	)		(8,540,728	)		(4,197,007	)
Net increase in net assets from capital stock transactions		170,964,924			133,646,118			107,995,724			69,850,100
Redemption fees (Note 2(l))
Institutional Shares		3,158			10,653			822			2,295
Open Shares		8,787			15,749			955			2,633
Net increase in net assets from redemption fees		11,945			26,402			1,777			4,928
Total increase in net assets		209,266,513			49,474,405			131,497,994			43,715,084
Net assets at beginning of period		223,856,431			174,382,026			107,662,039			63,946,955
Net assets at end of period*	$	433,122,944		$	223,856,431		$	239,160,033		$	107,662,039
* Includes undistributed (distributions in excess of) net investment income of	$	(1,570,471	)	$	(75,454	)	$	(564,690	)	$	21,088
(a) Portfolio commenced operations on March 31, 2011.
(b) Portfolio commenced operations on February 28, 2011.
(c) For the period June 1, 2011 to December 31, 2011. The Portfolio has changed its fiscal year end to December 31.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		15,019,710			4,815,473			8,706,504			4,402,117
Shares sold		19,277,485			15,748,244			11,499,059			8,327,731
Shares issued to shareholders from reinvestment of distributions		188,429			585,174			146,735			99,892
Shares redeemed		(7,084,811	)		(6,129,181	)		(2,754,037	)		(4,123,236	)
Net increase		12,381,103			10,204,237			8,891,757			4,304,387
Shares outstanding at end of period		27,400,813			15,019,710			17,598,261			8,706,504
Open Shares
Shares outstanding at beginning of period		5,935,969			6,698,626			2,312,343			733,742
Shares sold		5,734,648			5,937,465			1,744,940			1,948,997
Shares issued to shareholders from reinvestment of distributions		43,573			250,052			20,008			15,256
Shares redeemed		(4,186,414	)		(6,950,174	)		(785,314	)		(385,652	)
Net increase (decrease)		1,591,807			(762,657	)		979,634			1,578,601
Shares outstanding at end of period		7,527,776			5,935,969			3,291,977			2,312,343
(d) The inception date for Institutional Shares was September 26, 2011.

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

130  Annual Report

	Lazard Emerging Markets Multi-Strategy Portfolio						Lazard Emerging Markets Debt Portfolio						Lazard U.S. Realty Income Portfolio
	Year Ended December 31, 2012			Period Ended December 31, 2011 (a)			Year Ended December 31, 2012			Period Ended December 31, 2011 (b)			Year Ended December 31, 2012			Period Ended December 31, 2011 (c)
Increase (Decrease) in Net Assets
Operations
Net investment income	$	809,863		$	423,369		$	9,275,669		$	1,547,264		$	3,594,577		$	692,682
Net realized gain (loss) on investments, foreign currency, forward currency contracts, options and swap agreements		(606,707	)		(1,559,379	)		8,400,606			(163,912	)		2,753,485			(322,300	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts, options and swap agreements		10,132,597			(4,433,010	)		16,441,726			(841,177	)		4,495,301			(702,514	)
Net increase (decrease) in net assets resulting from operations		10,335,753			(5,569,020	)		34,118,001			542,175			10,843,363			(332,132	)
Distributions to shareholders
From net investment income
Institutional Shares		(878,676	)		(334,780	)		(9,238,454	)		(2,116,437	)		(1,744,918	)		(246,537	)
Open Shares		(3,690	)		(695	)		(32,787	)		(4,138	)		(854,779	)		(330,886	)
From net realized gains
Institutional Shares		—			—			(6,223,334	)		(60,732	)		(1,411,685	)		(165,398	)
Open Shares		—			—			(24,139	)		(73	)		(1,390,717	)		(1,148,069	)
Net decrease in net assets resulting from distributions		(882,366	)		(335,475	)		(15,518,714	)		(2,181,380	)		(5,402,099	)		(1,890,890	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		75,678,101			69,298,619			181,821,383			112,425,717			31,471,528			18,654,084
Open Shares		906,882			311,534			1,280,269			127,708			53,636,715			3,511,632
Net proceeds from reinvestment of distributions
Institutional Shares		699,458			216,928			14,815,813			2,052,208			3,078,434			405,885
Open Shares		3,535			600			52,868			4,211			2,093,258			1,041,199
Cost of shares redeemed
Institutional Shares		(17,301,390	)		(7,101,793	)		(35,834,871	)		(6,029,330	)		(6,321,457	)		(3,045	)
Open Shares		(357,454	)		(32,386	)		(375,933	)		—			(7,842,310	)		(11,361,563	)
Net increase in net assets from capital stock transactions		59,629,132			62,693,502			161,759,529			108,580,514			76,116,168			12,248,192
Redemption fees (Note 2(l))
Institutional Shares		5,029			144			531			—			398			—
Open Shares		—			9			217			—			3,518			1,188
Net increase in net assets from redemption fees		5,029			153			748			—			3,916			1,188
Total increase in net assets		69,087,548			56,789,160			180,359,564			106,941,309			81,561,348			10,026,358
Net assets at beginning of period		56,789,160			—			106,941,309			—			25,856,174			15,829,816
Net assets at end of period*	$	125,876,708		$	56,789,160		$	287,300,873		$	106,941,309		$	107,417,522		$	25,856,174
* Includes undistributed (distributions in excess of) net investment income of	$	(104,364	)	$	(331,733	)	$	23,729		$	(677,099	)	$	—		$	—
(a) Portfolio commenced operations on March 31, 2011.
(b) Portfolio commenced operations on February 28, 2011.
(c) For the period June 1, 2011 to December 31, 2011. The Portfolio has changed its fiscal year end to December 31.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		6,594,816			—			10,949,189			—			2,660,028			—	(d)
Shares sold		8,074,885			7,349,497			17,476,495			11,336,962			3,811,160			2,605,512
Shares issued to shareholders from reinvestment of distributions		73,088			25,461			1,392,026			207,193			366,619			54,927
Shares redeemed		(1,853,292	)		(780,142	)		(3,447,817	)		(594,966	)		(764,322	)		(411	)
Net increase		6,294,681			6,594,816			15,420,704			10,949,189			3,413,457			2,660,028
Shares outstanding at end of period		12,889,497			6,594,816			26,369,893			10,949,189			6,073,485			2,660,028
Open Shares
Shares outstanding at beginning of period		30,517			—			13,123			—			805,878			1,395,477
Shares sold		97,091			33,957			122,285			12,706			6,359,333			437,397
Shares issued to shareholders from reinvestment of distributions		369			70			4,941			417			247,778			138,495
Shares redeemed		(39,633	)		(3,510	)		(35,768	)		—			(938,391	)		(1,165,491	)
Net increase (decrease)		57,827			30,517			91,458			13,123			5,668,720			(589,599	)
Shares outstanding at end of period		88,344			30,517			104,581			13,123			6,474,598			805,878
(d) The inception date for Institutional Shares was September 26, 2011.

Annual Report  131

	Lazard U.S. Realty Equity Portfolio						Lazard International Realty Equity Portfolio
	Year Ended December 31, 2012			Period Ended December 31, 2011 (a)			Year Ended December 31, 2012			Period Ended December 31, 2011 (a)
Increase (Decrease) in Net Assets
Operations
Net investment income	$	674,794		$	29,627		$	55,655		$	8,105
Net realized gain (loss) on investments, foreign currency and forward currency contracts		1,566,296			233,648			196,406			(63,550	)
Net change in unrealized appreciation (depreciation) on investments, foreign currency and foreign currency contracts		2,353,234			(661,411	)		1,145,098			(404,282	)
Net increase (decrease) in net assets resulting from operations		4,594,324			(398,136	)		1,397,159			(459,727	)
Distributions to shareholders
From net investment income
Institutional Shares		(24,750	)		(10,686	)		(89,484	)		(34,441	)
Open Shares		(415,366	)		(4,322	)		(67,032	)		(38,933	)
From net realized gains
Institutional Shares		(62,992	)		(319,969	)		(18,944	)		(15,206	)
Open Shares		(1,532,345	)		(270,611	)		(15,413	)		(11,959	)
From return of capital
Institutional Shares		—			—			—			—
Open Shares		—			—			—			—
Net decrease in net assets resulting from distributions		(2,035,453	)		(605,588	)		(190,873	)		(100,539	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		924,792			1,305,500			19,658			2,000,000
Open Shares		77,949,831			263,978			1,509,496			71,663
Net proceeds from reinvestment of distributions
Institutional Shares		82,714			330,655			108,427			49,648
Open Shares		1,882,791			272,510			75,995			44,345
Cost of shares redeemed
Institutional Shares		(69	)		—			(6,635	)		—
Open Shares		(17,902,557	)		(3,359,846	)		(488,552	)		(740,648	)
Net increase (decrease) in net assets from capital stock transactions		62,937,502			(1,187,203	)		1,218,389			1,425,008
Redemption fees (Note 2(l))
Institutional Shares		1			—			1			—
Open Shares		22,440			1,457			447			—
Net increase in net assets from redemption fees		22,441			1,457			448			—
Total increase (decrease) in net assets		65,518,814			(2,189,470	)		2,425,123			864,742
Net assets at beginning of period		2,662,570			4,852,040			2,581,119			1,716,377
Net assets at end of period*	$	68,181,384		$	2,662,570		$	5,006,242		$	2,581,119
* Includes undistributed (distributions in excess of) net investment income of	$	—		$	—		$	(96,151	)	$	(26,911	)
(a) For the period June 1, 2011 to December 31, 2011. The Portfolio has changed its fiscal year end to December 31.
(b) U.S. Municipal Portfolio and Global Fixed Income Portfolio commenced operations on February 28, 2011 and March 30, 2012, respectively.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		102,426			—	(d)		157,229			—	(d)
Shares sold		53,434			80,121			1,367			153,406
Shares issued to shareholders from reinvestment of distributions		4,761			22,305			6,508			3,823
Shares redeemed		(4	)		—			(416	)		—
Net increase		58,191			102,426			7,459			157,229
Shares outstanding at end of period		160,617			102,426			164,688			157,229
Open Shares
Shares outstanding at beginning of period		76,246			248,909			54,805			101,112
Shares sold		4,609,856			15,910			102,778			4,906
Shares issued to shareholders from reinvestment of distributions		108,075			18,351			4,567			3,382
Shares redeemed		(1,046,612	)		(206,924	)		(31,951	)		(54,595	)
Net increase (decrease)		3,671,319			(172,663	)		75,394			(46,307	)
Shares outstanding at end of period		3,747,565			76,246			130,199			54,805

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

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

132 Annual Report

	Lazard U.S. High Yield Portfolio						Lazard U.S. Municipal Portfolio						Lazard Global Fixed Income Portfolio
	Year Ended December 31, 2012			Year Ended December 31, 2011			Year Ended December 31, 2012			Period Ended December 31, 2011 (b)			Period Ended December 31, 2012 (b)
Increase (Decrease) in Net Assets
Operations
Net investment income	$	12,027,385		$	10,726,159		$	245,864		$	174,858		$	72,075
Net realized gain (loss) on investments, foreign currency and forward currency contracts		(812,130	)		2,052,076			299,763			(34,936	)		12,144
Net change in unrealized appreciation (depreciation) on investments, foreign currency and foreign currency contracts		9,188,204			(5,269,974	)		(106,874	)		330,476			51,583
Net increase (decrease) in net assets resulting from operations		20,403,459			7,508,261			438,753			470,398			135,802
Distributions to shareholders
From net investment income
Institutional Shares		(11,731,153	)		(9,400,123	)		(245,376	)		(173,726	)		(27,809	)
Open Shares		(296,232	)		(1,330,150	)		(488	)		(1,432	)		(227	)
From net realized gains
Institutional Shares		—			—			(69,717	)		(48,209	)		—
Open Shares		—			—			(15	)		(429	)		—
From return of capital
Institutional Shares		—			—			—			—			(44,060	)
Open Shares		—			—			—			—			(360	)
Net decrease in net assets resulting from distributions		(12,027,385	)		(10,730,273	)		(315,596	)		(223,796	)		(72,456	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		73,510,534			57,646,994			12,480,126			11,938,179			7,859,060
Open Shares		2,383,005			14,541,009			—			99,000			64,295
Net proceeds from reinvestment of distributions
Institutional Shares		10,032,308			7,284,236			263,941			209,652			71,235
Open Shares		240,865			1,235,788			503			1,860			529
Cost of shares redeemed
Institutional Shares		(60,171,868	)		(23,312,985	)		(4,733,944	)		(798,710	)		(3,179,754	)
Open Shares		(10,254,392	)		(29,989,819	)		(100,000	)		—			(9,970	)
Net increase (decrease) in net assets from capital stock transactions		15,740,452			27,405,223			7,910,626			11,449,981			4,805,395
Redemption fees (Note 2(l))
Institutional Shares		80			3,520			5			3			—
Open Shares		321			445			—			—			—
Net increase in net assets from redemption fees		401			3,965			5			3			—
Total increase (decrease) in net assets		24,116,927			24,187,176			8,033,788			11,696,586			4,868,741
Net assets at beginning of period		162,880,365			138,693,189			11,696,586			—			—
Net assets at end of period*	$	186,997,292		$	162,880,365		$	19,730,374		$	11,696,586		$	4,868,741
* Includes undistributed (distributions in excess of) net investment income of	$	(109,177	)	$	(128,289	)	$	(300	)	$	(300	)	$	56,183
(a) For the period June 1, 2011 to December 31, 2011. The Portfolio has changed its fiscal year end to December 31.
(b) U.S. Municipal Portfolio and Global Fixed Income Portfolio commenced operations on February 28, 2011 and March 30, 2012, respectively.
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of period		31,644,633			23,045,185			1,132,905			—			—
Shares sold		14,994,633			11,937,663			1,212,766			1,190,953			785,190
Shares issued to shareholders from reinvestment of distributions		2,035,775			1,505,072			25,580			20,653			7,030
Shares redeemed		(12,233,450	)		(4,843,287	)		(457,560	)		(78,701	)		(318,547	)
Net increase		4,796,958			8,599,448			780,786			1,132,905			473,673
Shares outstanding at end of period		36,441,591			31,644,633			1,913,691			1,132,905			473,673
Open Shares
Shares outstanding at beginning of period		2,416,907			5,357,420			10,083			—			—
Shares sold		490,550			2,973,657			—			9,900			6,374
Shares issued to shareholders from reinvestment of distributions		48,681			251,073			49			183			52
Shares redeemed		(2,113,525	)		(6,165,243	)		(9,727	)		—			(1,000	)
Net increase (decrease)		(1,574,294	)		(2,940,513	)		(9,678	)		10,083			5,426
Shares outstanding at end of period		842,613			2,416,907			405			10,083			5,426

Annual Report  133

	Lazard Capital Allocator Opportunistic Strategies Portfolio
	Year Ended December 31, 2012			Year Ended December 31, 2011
Increase (Decrease) in Net Assets
Operations
Net investment income	$	2,849,308		$	3,161,113
Net realized gain on investments, foreign currency, forward currency contracts, options and swap agreements		3,977,250			28,152,296
Net change in unrealized appreciation (depreciation) on investments, foreign currency, forward currency contracts, options and swap agreements		14,414,375			(37,418,891	)
Net increase (decrease) in net assets resulting from operations		21,240,933			(6,105,482	)
Distributions to shareholders
From net investment income
Institutional Shares		(1,741,480	)		(3,523,669	)
Open Shares		(14,988	)		(59,701	)
From net realized gains
Institutional Shares		—			(6,713,946	)
Open Shares		—			(154,961	)
Net decrease in net assets resulting from distributions		(1,756,468	)		(10,452,277	)
Capital stock transactions
Net proceeds from sales
Institutional Shares		42,720,549			113,697,161
Open Shares		357,130			3,431,907
Net proceeds from reinvestment of distributions
Institutional Shares		705,622			4,208,402
Open Shares		13,997			200,236
Cost of shares redeemed
Institutional Shares		(96,362,264	)		(82,327,061	)
Open Shares		(3,788,199	)		(4,278,584	)
Net increase (decrease) in net assets from capital stock transactions		(56,353,165	)		34,932,061
Redemption fees (Note 2(l))
Institutional Shares		7,632			2,220
Open Shares		—			395
Net increase in net assets from redemption fees		7,632			2,615
Total increase (decrease) in net assets		(36,861,068	)		18,376,917
Net assets at beginning of year		264,942,720			246,565,803
Net assets at end of year*	$	228,081,652		$	264,942,720
* Includes distributions in excess of net investment income of	$	11,254		$	(2,213,504	)
Shares issued and redeemed
Institutional Shares
Shares outstanding at beginning of year		27,954,774			24,035,924
Shares sold		4,341,367			11,657,534
Shares issued to shareholders from reinvestment of distributions		70,775			457,708
Shares redeemed		(9,944,269	)		(8,196,392	)
Net increase (decrease)		(5,532,127	)		3,918,850
Shares outstanding at end of year		22,422,647			27,954,774
Open Shares
Shares outstanding at beginning of year		660,085			718,711
Shares sold		36,305			341,942
Shares issued to shareholders from reinvestment of distributions		1,404			21,789
Shares redeemed		(388,857	)		(422,357	)
Net decrease		(351,148	)		(58,626	)
Shares outstanding at end of year		308,937			660,085

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

134  Annual Report

The Lazard Funds, Inc. Financial Highlights

LAZARD U.S. EQUITY CONCENTRATED PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Institutional Shares
Net asset value, beginning of year	$	9.24		$	9.56		$	8.62		$	7.00		$	11.25
Income (loss) from investment operations:
Net investment income (a)		0.20			0.15			0.10			0.12			0.18
Net realized and unrealized gain (loss)		1.37			(0.30	)		0.93			1.62			(4.26	)
Total from investment operations		1.57			(0.15	)		1.03			1.74			(4.08	)
Less distributions from:
Net investment income		(0.10	)		(0.17	)		(0.09	)		(0.12	)		(0.17	)
Total distributions		(0.10	)		(0.17	)		(0.09	)		(0.12	)		(0.17	)
Redemption fees		—	(c)		—(c	)		—(c	)		—			—
Net asset value, end of year	$	10.71		$	9.24		$	9.56		$	8.62		$	7.00
Total Return (b)		16.83	%		–1.47	%		12.00	%		24.81	%		–36.18	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	121,379		$	11,108		$	13,066		$	8,464		$	6,554
Ratios to average net assets:
Net expenses		0.93	%		0.75	%		0.97	%		1.00	%		1.00	%
Gross expenses		1.28	%		2.27	%		2.76	%		3.44	%		3.21	%
Net investment income		1.94	%		1.59	%		1.19	%		1.60	%		1.90	%
Portfolio turnover rate		116	%		53	%		53	%		62	%		97	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Open Shares
Net asset value, beginning of year	$	9.30		$	9.61		$	8.67		$	7.04		$	11.31
Income (loss) from investment operations:
Net investment income (a)		0.15			0.12			0.08			0.09			0.15
Net realized and unrealized gain (loss)		1.39			(0.29	)		0.93			1.64			(4.28	)
Total from investment operations		1.54			(0.17	)		1.01			1.73			(4.13	)
Less distributions from:
Net investment income		(0.07	)		(0.14	)		(0.07	)		(0.10	)		(0.14	)
Total distributions		(0.07	)		(0.14	)		(0.07	)		(0.10	)		(0.14	)
Redemption fees		—	(c)		—	(c)		—			—	(c)		—
Net asset value, end of year	$	10.77		$	9.30		$	9.61		$	8.67		$	7.04
Total Return (b)		16.51	%		–1.77	%		11.62	%		24.49	%		–36.43	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	691		$	312		$	294		$	300		$	134
Ratios to average net assets:
Net expenses		1.19	%		1.05	%		1.27	%		1.30	%		1.30	%
Gross expenses		4.84	%		6.49	%		7.28	%		5.52	%		12.10	%
Net investment income		1.51	%		1.30	%		0.88	%		1.15	%		1.56	%
Portfolio turnover rate		116	%		53	%		53	%		62	%		97	%

(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.

Annual Report  135

LAZARD U.S. STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Institutional Shares
Net asset value, beginning of year	$	9.03		$	8.97		$	8.02		$	6.26		$	10.03
Income (loss) from investment operations:
Net investment income (a)		0.14			0.12			0.07			0.08			0.12
Net realized and unrealized gain (loss)		1.17			0.02			0.97			1.68			(3.65	)
Total from investment operations		1.31			0.14			1.04			1.76			(3.53	)
Less distributions from:
Net investment income		(0.23	)		(0.08	)		(0.09	)		—			(0.12	)
Net realized gains		—			—			—			—			(0.12	)
Total distributions		(0.23	)		(0.08	)		(0.09	)		—			(0.24	)
Redemption fees		—	(c)		—	(c)		—	(c)		—			—
Net asset value, end of year	$	10.11		$	9.03		$	8.97		$	8.02		$	6.26
Total Return (b)		14.56	%		1.65	%		13.13	%		28.12	%		–35.43	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	75,327		$	64,239		$	71,207		$	66,153		$	54,749
Ratios to average net assets:
Net expenses		0.75	%		0.75	%		1.01	%		1.05	%		1.05	%
Gross expenses		0.99	%		1.00	%		1.06	%		1.09	%		1.06	%
Net investment income		1.40	%		1.29	%		0.88	%		1.26	%		1.45	%
Portfolio turnover rate		60	%		48	%		49	%		76	%		82	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Open Shares
Net asset value, beginning of year	$	9.04		$	8.97		$	8.02		$	6.28		$	10.05
Income (loss) from investment operations:
Net investment income (a)		0.11			0.09			0.05			0.07			0.10
Net realized and unrealized gain (loss)		1.16			0.03			0.97			1.67			(3.65	)
Total from investment operations		1.27			0.12			1.02			1.74			(3.55	)
Less distributions from:
Net investment income		(0.17	)		(0.05	)		(0.07	)		—			(0.10	)
Net realized gains		—			—			—			—			(0.12	)
Total distributions		(0.17	)		(0.05	)		(0.07	)		—			(0.22	)
Redemption fees		—			—			—	(c)		—			—
Net asset value, end of year	$	10.14		$	9.04		$	8.97		$	8.02		$	6.28
Total Return (b)		14.10	%		1.42	%		12.79	%		27.71	%		—35.63	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	8,401		$	8,478		$	10,024		$	8,945		$	7,218
Ratios to average net assets:
Net expenses		1.05	%		1.05	%		1.31	%		1.35	%		1.35	%
Gross expenses		1.37	%		1.36	%		1.44	%		1.39	%		1.51	%
Net investment income		1.10	%		0.99	%		0.59	%		0.96	%		1.15	%
Portfolio turnover rate		60	%		48	%		49	%		76	%		82	%

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

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

136  Annual Report

LAZARD U.S. MID CAP EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Institutional Shares
Net asset value, beginning of year	$	11.87		$	12.61		$	10.31		$	7.50		$	12.46
Income (loss) from investment operations:
Net investment income (a)		0.05			0.05			0.10			0.08			0.15
Net realized and unrealized gain (loss)		0.63			(0.75	)		2.31			2.81			(4.93	)
Total from investment operations		0.68			(0.70	)		2.41			2.89			(4.78	)
Less distributions from:
Net investment income		(0.03	)		(0.04	)		(0.11	)		(0.08	)		(0.18	)
Total distributions		(0.03	)		(0.04	)		(0.11	)		(0.08	)		(0.18	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	12.52		$	11.87		$	12.61		$	10.31		$	7.50
Total Return (b)		5.76	%		–5.58	%		23.43	%		38.49	%		–38.33	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	30,803		$	91,740		$	126,626		$	143,267		$	103,650
Ratios to average net assets:
Net expenses		0.98	%		0.93	%		0.91	%		0.91	%		0.89	%
Gross expenses		0.98	%		0.93	%		0.91	%		0.91	%		0.89	%
Net investment income		0.40	%		0.37	%		0.90	%		0.90	%		1.41	%
Portfolio turnover rate		102	%		83	%		75	%		77	%		81	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Open Shares
Net asset value, beginning of year	$	11.72		$	12.45		$	10.18		$	7.40		$	12.29
Income (loss) from investment operations:
Net investment income (a)		0.03			0.01			0.07			0.05			0.13
Net realized and unrealized gain (loss)		0.61			(0.74	)		2.28			2.78			(4.87	)
Total from investment operations		0.64			(0.73	)		2.35			2.83			(4.74	)
Less distributions from:
Net investment income		(0.01	)		—	(c)		(0.08	)		(0.05	)		(0.15	)
Total distributions		(0.01	)		—	(c)		(0.08	)		(0.05	)		(0.15	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	12.35		$	11.72		$	12.45		$	10.18		$	7.40
Total Return (b)		5.44	%		–5.84	%		23.09	%		38.26	%		–38.53	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	41,492		$	52,048		$	69,551		$	69,737		$	64,372
Ratios to average net assets:
Net expenses		1.26	%		1.19	%		1.17	%		1.17	%		1.15	%
Gross expenses		1.26	%		1.19	%		1.17	%		1.17	%		1.15	%
Net investment income		0.21	%		0.11	%		0.66	%		0.64	%		1.17	%
Portfolio turnover rate		102	%		83	%		75	%		77	%		81	%

(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 137

LAZARD U.S. SMALL-MID CAP EQUITY PORTFOLIO

	Year Ended
Selected data for a share of capital
stock outstanding throughout each year		12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Institutional Shares
Net asset value, beginning of year	$	11.82		$	14.55		$	11.80		$	7.59		$	11.58
Income (loss) from investment operations:
Net investment income (loss) (a)		0.05			0.01			0.09			(0.01	)		0.01
Net realized and unrealized gain (loss)		1.77			(1.45	)		2.70			4.22			(4.00	)
Total from investment operations		1.82			(1.44	)		2.79			4.21			(3.99	)
Less distributions from:
Net investment income		(0.02	)		—			(0.04	)		—			—
Net realized gains		(0.33	)		(1.29	)		—			—			—
Total distributions		(0.35	)		(1.29	)		(0.04	)		—			—
Redemption fees		—	(c)		—	(c)		—	(c)		—			—	(c)
Net asset value, end of year	$	13.29		$	11.82		$	14.55		$	11.80		$	7.59
Total Return (b)		15.45	%		–9.83	%		23.67	%		55.47	%		–34.46	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	289,855		$	167,042		$	238,901		$	56,042		$	36,934
Ratios to average net assets:
Net expenses		0.88	%		0.90	%		1.00	%		1.22	%		1.13	%
Gross expenses		0.88	%		0.90	%		1.00	%		1.23	%		1.13	%
Net investment income (loss)		0.41	%		0.08	%		0.68	%		–0.12	%		0.08	%
Portfolio turnover rate		92	%		110	%		114	%		195	%		138	%

	Year Ended
Selected data for a share of capital
stock outstanding throughout each year		12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Open Shares
Net asset value, beginning of year	$	11.52		$	14.26		$	11.56		$	7.46		$	11.43
Income (loss) from investment operations:
Net investment income (loss) (a)		—	(c)		(0.03	)		0.03			(0.04	)		(0.03	)
Net realized and unrealized gain (loss)		1.73			(1.42	)		2.67			4.14			(3.94	)
Total from investment operations		1.73			(1.45	)		2.70			4.10			(3.97	)
Less distributions from:
Net realized gains		(0.33	)		(1.29	)		—			—			—
Total distributions		(0.33	)		(1.29	)		—			—			—
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	12.92		$	11.52		$	14.26		$	11.56		$	7.46
Total Return (b)		14.97	%		–10.09	%		23.36	%		54.96	%		–34.73	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	15,984		$	20,039		$	21,620		$	19,531		$	10,500
Ratios to average net assets:
Net expenses		1.21	%		1.21	%		1.34	%		1.51	%		1.49	%
Gross expenses		1.21	%		1.21	%		1.34	%		1.52	%		1.49	%
Net investment income (loss)		0.01	%		–0.23	%		0.21	%		–0.40	%		–0.26	%
Portfolio turnover rate		92	%		110	%		114	%		195	%		138	%

(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.

138  Annual Report

LAZARD GLOBAL LISTED INFRASTRUCTURE PORTFOLIO

	Year Ended
Selected data for a share of capital										Period Ended
stock outstanding throughout each period	12/31/12			12/31/11			12/31/10			12/31/09*
Institutional Shares
Net asset value, beginning of period	$	9.78		$	10.31		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.31			0.33			0.30			—	(c)
Net realized and unrealized gain (loss)		1.43			(0.48	)		0.34			—
Total from investment operations		1.74			(0.15	)		0.64			—	(c)
Less distributions from:
Net investment income		(0.35	)		(0.15	)		(0.23	)		—
Net realized gains		(0.21	)		(0.23	)		(0.10	)		—
Total distributions		(0.56	)		(0.38	)		(0.33	)		—
Redemption fees		—	(c)		—	(c)		—	(c)		—
Net asset value, end of period	$	10.96		$	9.78		$	10.31		$	10.00
Total Return (b)		18.05	%		–1.55	%		6.63	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	125,112		$	104,439		$	115,680		$	74
Ratios to average net assets:
Net expenses (d)		1.14	%		1.09	%		1.30	%		1.30	%
Gross expenses (d)		1.14	%		1.09	%		1.35	%		1,825.00	%(e)
Net investment income (loss) (d)		3.01	%		3.15	%		3.01	%		–1.30	%
Portfolio turnover rate		26	%		135	%		46	%		0	%

	Year Ended
Selected data for a share of capital										Period Ended
stock outstanding throughout each period	12/31/12			12/31/11			12/31/10			12/31/09*
Open Shares
Net asset value, beginning of period	$	9.78		$	10.34		$	10.00		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.28			0.28			0.24			—	(c)
Net realized and unrealized gain (loss)		1.42			(0.49	)		0.38			—
Total from investment operations		1.70			(0.21	)		0.62			—	(c)
Less distributions from:
Net investment income		(0.30	)		(0.12	)		(0.18	)		—
Net realized gains		(0.21	)		(0.23	)		(0.10	)		—
Total distributions		(0.51	)		(0.35	)		(0.28	)		—
Redemption fees		—	(c)		—	(c)		—			—
Net asset value, end of period	$	10.97		$	9.78		$	10.34		$	10.00
Total Return (b)		17.54	%		–1.95	%		6.28	%		0.00	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	12,715		$	8,359		$	118		$	50
Ratios to average net assets:
Net expenses (d)		1.50	%		1.60	%		1.60	%		1.60	%
Gross expenses (d)		1.50	%		1.67	%		18.06	%		1,825.00	%(e)
Net investment income (loss) (d)		2.66	%		2.81	%		2.37	%		–1.60	%
Portfolio turnover rate		26	%		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; without such waiver/reimbursement of expenses, the Portfolio’s returns would have been lower.
(c)	Amount is less than $0.01 per share.
(d)	Annualized for a period of less than one year.
(e)	Gross expense ratio was the result of the Portfolio being in existence for one day during the period ended 12/31/09.

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

Annual Report  139

LAZARD INTERNATIONAL EQUITY PORTFOLIO

	Year Ended
Selected data for a share of capital
stock outstanding throughout each year	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Institutional Shares
Net asset value, beginning of year	$	12.49		$	13.81		$	13.14		$	10.50		$	17.55
Income (loss) from investment operations:
Net investment income (a)		0.25			0.27			0.21			0.26			0.36
Net realized and unrealized gain (loss)		2.56			(1.25	)		0.82			2.38			(7.00	)
Total from investment operations		2.81			(0.98	)		1.03			2.64			(6.64	)
Less distributions from:
Net investment income		(0.52	)		(0.34	)		(0.36	)		—	(c)		(0.41	)
Total distributions		(0.52	)		(0.34	)		(0.36	)		—	(c)		(0.41	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	14.78		$	12.49		$	13.81		$	13.14		$	10.50
Total Return (b)		22.70	%		–7.17	%		8.04	%		25.19	%		–37.75	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	109,088		$	86,880		$	127,485		$	139,070		$	119,870
Ratios to average net assets:
Net expenses		1.02	%		1.03	%		0.98	%		0.99	%		0.93	%
Gross expenses		1.02	%		1.03	%		0.98	%		0.99	%		0.93	%
Net investment income		1.85	%		1.99	%		1.63	%		2.33	%		2.47	%
Portfolio turnover rate		48	%		39	%		53	%		66	%		44	%

	Year Ended
Selected data for a share of capital
stock outstanding throughout each year	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Open Shares
Net asset value, beginning of year	$	12.59		$	13.91		$	13.24		$	10.60		$	17.69
Income (loss) from investment operations:
Net investment income (a)		0.21			0.24			0.16			0.22			0.31
Net realized and unrealized gain (loss)		2.57			(1.26	)		0.83			2.42			(7.04	)
Total from investment operations		2.78			(1.02	)		0.99			2.64			(6.73	)
Less distributions from:
Net investment income		(0.43	)		(0.30	)		(0.32	)		—			(0.36	)
Total distributions		(0.43	)		(0.30	)		(0.32	)		—			(0.36	)
Redemption fees		—	(c)		—	(c)		—	(c)		—			—	(c)
Net asset value, end of year	$	14.94		$	12.59		$	13.91		$	13.24		$	10.60
Total Return (b)		22.30	%		–7.42	%		7.65	%		24.91	%		–37.98	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	25,610		$	18,699		$	28,670		$	19,520		$	14,829
Ratios to average net assets:
Net expenses		1.32	%		1.33	%		1.29	%		1.27	%		1.28	%
Gross expenses		1.32	%		1.33	%		1.29	%		1.27	%		1.28	%
Net investment income		1.49	%		1.78	%		1.25	%		1.98	%		2.16	%
Portfolio turnover rate		48	%		39	%		53	%		66	%		44	%

(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.

140  Annual Report

LAZARD INTERNATIONAL EQUITY SELECT PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Institutional Shares
Net asset value, beginning of year	$	7.18		$	7.99		$	7.70		$	6.39		$	11.78
Income (loss) from investment operations:
Net investment income (a)		0.12			0.13			0.14			0.17			0.30
Net realized and unrealized gain (loss)		1.43			(0.70	)		0.49			1.16			(4.73	)
Total from investment operations		1.55			(0.57	)		0.63			1.33			(4.43	)
Less distributions from:
Net investment income		(0.22	)		(0.24	)		(0.34	)		(0.02	)		(0.33	)
Net realized gains		—			—			—			—			(0.63	)
Total distributions		(0.22	)		(0.24	)		(0.34	)		(0.02	)		(0.96	)
Redemption fees		—	(c)		—	(c)		—			—	(c)		—	(c)
Net asset value, end of year	$	8.51		$	7.18		$	7.99		$	7.70		$	6.39
Total Return (b)		21.59	%		–7.14	%		8.49	%		20.86	%		–38.74	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	7,571		$	4,519		$	3,614		$	3,925		$	3,860
Ratios to average net assets:
Net expenses		1.15	%		1.15	%		1.15	%		1.15	%		1.15	%
Gross expenses		4.17	%		4.66	%		5.08	%		3.46	%		2.24	%
Net investment income		1.55	%		1.72	%		1.80	%		2.52	%		3.06	%
Portfolio turnover rate		46	%		55	%		75	%		67	%		52	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Open Shares
Net asset value, beginning of year	$	7.20		$	8.02		$	7.72		$	6.41		$	11.81
Income (loss) from investment operations:
Net investment income (a)		0.12			0.11			0.12			0.14			0.26
Net realized and unrealized gain (loss)		1.42			(0.72	)		0.49			1.17			(4.73	)
Total from investment operations		1.54			(0.61	)		0.61			1.31			(4.47	)
Less distributions from:
Net investment income		(0.17	)		(0.21	)		(0.31	)		—	(c)		(0.30	)
Net realized gains		—			—			—			—			(0.63	)
Total distributions		(0.17	)		(0.21	)		(0.31	)		—	(c)		(0.93	)
Redemption fees		—	(c)		—			—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	8.57		$	7.20		$	8.02		$	7.72		$	6.41
Total Return (b)		21.23	%		–7.41	%		8.29	%		20.49	%		–39.00	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	2,888		$	2,463		$	3,056		$	4,530		$	5,853
Ratios to average net assets:
Net expenses		1.45	%		1.45	%		1.45	%		1.45	%		1.45	%
Gross expenses		4.77	%		5.12	%		5.31	%		3.62	%		2.47	%
Net investment income		1.55	%		1.43	%		1.56	%		2.11	%		2.67	%
Portfolio turnover rate		46	%		55	%		75	%		67	%		52	%

(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  141

LAZARD INTERNATIONAL STRATEGIC EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year		Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Institutional Shares
Net asset value, beginning of year	$	9.46		$	10.63		$	9.41		$	7.51		$	12.92
Income (loss) from investment operations:
Net investment income (a)		0.15			0.16			0.13			0.20			0.26
Net realized and unrealized gain (loss)		2.21			(1.19	)		1.22			1.88			(5.43	)
Total from investment operations		2.36			(1.03	)		1.35			2.08			(5.17	)
Less distributions from:
Net investment income		(0.11	)		(0.14	)		(0.13	)		(0.18	)		(0.22	)
Net realized gains		—			—			—			—			(0.02	)
Total distributions		(0.11	)		(0.14	)		(0.13	)		(0.18	)		(0.24	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	11.71		$	9.46		$	10.63		$	9.41		$	7.51
Total Return (b)		25.00	%		–9.70	%		14.43	%		27.76	%		–39.98	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	893,610		$	435,411		$	356,098		$	311,570		$	245,604
Ratios to average net assets:
Net expenses		0.86	%		0.88	%		0.90	%		0.91	%		0.90	%
Gross expenses		0.86	%		0.88	%		0.90	%		0.91	%		0.90	%
Net investment income		1.45	%		1.53	%		1.30	%		2.42	%		2.48	%
Portfolio turnover rate		52	%		53	%		55	%		129	%		72	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Open Shares
Net asset value, beginning of year	$	9.53		$	10.68		$	9.43		$	7.51		$	12.90
Income (loss) from investment operations:
Net investment income (a)		0.09			0.13			0.09			0.16			0.23
Net realized and unrealized gain (loss)		2.26			(1.20	)		1.24			1.90			(5.42	)
Total from investment operations		2.35			(1.07	)		1.33			2.06			(5.19	)
Less distributions from:
Net investment income		(0.08	)		(0.08	)		(0.08	)		(0.14	)		(0.18	)
Net realized gains		—			—			—			—			(0.02	)
Total distributions		(0.08	)		(0.08	)		(0.08	)		(0.14	)		(0.20	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	11.80		$	9.53		$	10.68		$	9.43		$	7.51
Total Return (b)		24.74	%		–10.01	%		14.09	%		27.38	%		–40.18	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	315,811		$	63,280		$	46,051		$	19,446		$	13,627
Ratios to average net assets:
Net expenses		1.13	%		1.16	%		1.20	%		1.21	%		1.24	%
Gross expenses		1.13	%		1.16	%		1.20	%		1.21	%		1.24	%
Net investment income		0.87	%		1.26	%		0.89	%		1.98	%		2.23	%
Portfolio turnover rate		52	%		53	%		55	%		129	%		72	%

(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.

142  Annual Report

LAZARD INTERNATIONAL SMALL CAP EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Institutional Shares
Net asset value, beginning of year	$	6.84		$	8.12		$	6.68		$	4.80		$	10.49
Income (loss) from investment operations:
Net investment income (a)		0.11			0.13			0.10			0.08			0.15
Net realized and unrealized gain (loss)		1.40			(1.27	)		1.45			1.80			(5.19	)
Total from investment operations		1.51			(1.14	)		1.55			1.88			(5.04	)
Less distributions from:
Net investment income		(0.23	)		(0.14	)		(0.11	)		—			(0.14	)
Net realized gains		—			—			—			—			(0.51	)
Total distributions		(0.23	)		(0.14	)		(0.11	)		—			(0.65	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	8.12		$	6.84		$	8.12		$	6.68		$	4.80
Total Return (b)		22.28	%		–14.11	%		23.55	%		39.17	%		–49.84	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	45,360		$	38,879		$	47,134		$	40,243		$	74,640
Ratios to average net assets:
Net expenses		1.13	%		1.13	%		1.13	%		1.17	%		0.98	%
Gross expenses		1.18	%		1.17	%		1.21	%		1.21	%		0.98	%
Net investment income		1.40	%		1.65	%		1.39	%		1.55	%		1.81	%
Portfolio turnover rate		48	%		28	%		41	%		51	%		61	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Open Shares
Net asset value, beginning of year	$	6.86		$	8.14		$	6.70		$	4.82		$	10.51
Income (loss) from investment operations:
Net investment income (a)		0.08			0.10			0.08			0.07			0.13
Net realized and unrealized gain (loss)		1.41			(1.26	)		1.45			1.81			(5.20	)
Total from investment operations		1.49			(1.16	)		1.53			1.88			(5.07	)
Less distributions from:
Net investment income		(0.18	)		(0.12	)		(0.09	)		—			(0.11	)
Net realized gains		—			—			—			—			(0.51	)
Total distributions		(0.18	)		(0.12	)		(0.09	)		—			(0.62	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	8.17		$	6.86		$	8.14		$	6.70		$	4.82
Total Return (b)		21.96	%		–14.36	%		23.13	%		39.00	%		–50.02	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	17,669		$	17,744		$	24,984		$	27,920		$	30,052
Ratios to average net assets:
Net expenses		1.43	%		1.43	%		1.43	%		1.43	%		1.31	%
Gross expenses		1.48	%		1.46	%		1.49	%		1.48	%		1.31	%
Net investment income		1.08	%		1.34	%		1.09	%		1.28	%		1.56	%
Portfolio turnover rate		48	%		28	%		41	%		51	%		61	%

(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  143

LAZARD EMERGING MARKETS EQUITY PORTFOLIO
Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Institutional Shares
Net asset value, beginning of year	$	16.80		$	21.78		$	18.01		$	10.88		$	23.88
Income (loss) from investment operations:
Net investment income (a)		0.35			0.49			0.38			0.35			0.61
Net realized and unrealized gain (loss)		3.39			(4.36	)		3.71			7.24			(11.78	)
Total from investment operations		3.74			(3.87	)		4.09			7.59			(11.17	)
Less distributions from:
Net investment income		(0.36	)		(0.63	)		(0.32	)		(0.46	)		(0.49	)
Net realized gains		(0.64	)		(0.48	)		—			—			(1.34	)
Total distributions		(1.00	)		(1.11	)		(0.32	)		(0.46	)		(1.83	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	19.54		$	16.80		$	21.78		$	18.01		$	10.88
Total Return (b)		22.36	%		–17.75	%		22.81	%		69.82	%		–47.88	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	13,315,172		$	10,902,557		$	14,561,085		$	8,497,341		$	3,295,983
Ratios to average net assets:
Net expenses		1.10	%		1.12	%		1.14	%		1.15	%		1.17	%
Gross expenses		1.10	%		1.12	%		1.14	%		1.15	%		1.17	%
Net investment income		1.85	%		2.44	%		1.96	%		2.40	%		3.16	%
Portfolio turnover rate		23	%		23	%		23	%		49	%		43	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Open Shares
Net asset value, beginning of year	$	17.20		$	22.19		$	18.28		$	11.05		$	24.17
Income (loss) from investment operations:
Net investment income (a)		0.30			0.49			0.34			0.29			0.52
Net realized and unrealized gain (loss)		3.47			(4.50	)		3.76			7.35			(11.87	)
Total from investment operations		3.77			(4.01	)		4.10			7.64			(11.35	)
Less distributions from:
Net investment income		(0.30	)		(0.50	)		(0.19	)		(0.41	)		(0.43	)
Net realized gains		(0.64	)		(0.48	)		—			—			(1.34	)
Total distributions		(0.94	)		(0.98	)		(0.19	)		(0.41	)		(1.77	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	20.03		$	17.20		$	22.19		$	18.28		$	11.05
Total Return (b)		22.03	%		–18.02	%		22.43	%		69.14	%		–48.09	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	2,625,843		$	2,731,646		$	4,187,207		$	3,478,654		$	1,135,042
Ratios to average net assets:
Net expenses		1.40	%		1.42	%		1.49	%		1.55	%		1.53%(d	)
Gross expenses		1.40	%		1.42	%		1.49	%		1.55	%		1.54	%
Net investment income		1.58	%		2.18	%		1.73	%		1.94	%		2.72	%
Portfolio turnover rate		23	%		23	%		23	%		49	%		43	%

(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.

144  Annual Report

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
	12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	10.68		$	15.12		$	13.18		$	6.54		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.09			0.06			0.02			0.01			0.01
Net realized and unrealized gain (loss)		1.74			(4.00	)		3.63			7.09			(3.46	)
Total from investment operations		1.83			(3.94	)		3.65			7.10			(3.45	)
Less distributions from:
Net investment income		(0.11	)		—			(0.09	)		(0.04	)		(0.01	)
Net realized gains		—			(0.50	)		(1.62	)		(0.42	)		—
Total distributions		(0.11	)		(0.50	)		(1.71	)		(0.46	)		(0.01	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—
Net asset value, end of period	$	12.40		$	10.68		$	15.12		$	13.18		$	6.54
Total Return (b)		17.16	%		–26.15	%		28.62	%		108.53	%		–34.54	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	339,771		$	160,441		$	72,798		$	20,002		$	6,539
Ratios to average net assets:
Net expenses (d)		1.21	%		1.30	%		1.30	%		1.30	%		1.30	%
Gross expenses (d)		1.21	%		1.30	%		1.67	%		2.81	%		11.98	%
Net investment income (d)		0.74	%		0.45	%		0.15	%		0.07	%		0.34	%
Portfolio turnover rate		61	%		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
	12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	10.68		$	15.16		$	13.19		$	6.55		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.05			0.01			(0.05	)		(0.08	)		—	(c)
Net realized and unrealized gain (loss)		1.74			(3.99	)		3.65			7.13			(3.45	)
Total from investment operations		1.79			(3.98	)		3.60			7.05			(3.45	)
Less distributions from:
Net investment income		(0.07	)		—			(0.01	)		—	(c)		—
Net realized gains		—			(0.50	)		(1.62	)		(0.42	)		—
Total distributions		(0.07	)		(0.50	)		(1.63	)		(0.42	)		—
Redemption fees		—(c	)		—(c	)		—(c	)		0.01			—
Net asset value, end of period	$	12.40		$	10.68		$	15.16		$	13.19		$	6.55
Total Return (b)		16.79	%		–26.34	%		28.13	%		108.17	%		–34.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	93,352		$	63,415		$	101,584		$	42,975		$	357
Ratios to average net assets:
Net expenses (d)		1.53	%		1.60	%		1.60	%		1.60	%		1.60	%
Gross expenses (d)		1.53	%		1.62	%		1.85	%		2.54	%		28.95	%
Net investment income (loss) (d)		0.43	%		0.10	%		–0.33	%		–0.63	%		–0.09	%
Portfolio turnover rate		61	%		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.

Annual Report  145

LAZARD EMERGING MARKETS EQUITY BLEND PORTFOLIO

	Year Ended						For the Period 5/28/10* to 12/31/10
Selected data for a share of capital stock outstanding throughout each period	12/31/12			12/31/11
Institutional Shares
Net asset value, beginning of period	$	9.77		$	12.45		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.11			0.15			(0.01	)
Net realized and unrealized gain (loss)		1.68			(2.70	)		2.48
Total from investment operations		1.79			(2.55	)		2.47
Less distributions from:
Net investment income		(0.11	)		(0.08	)		—
Net realized gains		—			(0.05	)		(0.02	)
Total distributions		(0.11	)		(0.13	)		(0.02	)
Redemption fees		—	(c)		—	(c)		—	(c)
Net asset value, end of period	$	11.45		$	9.77		$	12.45
Total Return (b)		18.19	%		—20.43	%		24.66	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	201,512		$	85,091		$	54,826
Ratios to average net assets:
Net expenses (d)		1.34	%		1.35	%		1.35	%
Gross expenses (d)		1.34	%		1.54	%		6.24	%
Net investment income (loss) (d)		1.01	%		1.34	%		–0.16	%
Portfolio turnover rate		57	%		62	%		62	%

	Year Ended						For the Period 5/28/10* to 12/31/10
Selected data for a share of capital stock outstanding throughout each period	12/31/12			12/31/11
Open Shares
Net asset value, beginning of period	$	9.76		$	12.43		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.09			0.11			(0.05	)
Net realized and unrealized gain (loss)		1.66			(2.68	)		2.50
Total from investment operations		1.75			(2.57	)		2.45
Less distributions from:
Net investment income		(0.07	)		(0.05	)		—
Net realized gains		—			(0.05	)		(0.02	)
Total distributions		(0.07	)		(0.10	)		(0.02	)
Redemption fees		—	(c)		—	(c)		—	(c)
Net asset value, end of period	$	11.44		$	9.76		$	12.43
Total Return (b)		17.97	%		—20.74	%		24.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	37,648		$	22,571		$	9,121
Ratios to average net assets:
Net expenses (d)		1.64	%		1.65	%		1.65	%
Gross expenses (d)		1.77	%		1.92	%		6.06	%
Net investment income (loss) (d)		0.78	%		0.94	%		–0.70	%
Portfolio turnover rate		57	%		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, 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.

146  Annual Report

LAZARD EMERGING MARKETS MULTI-STRATEGY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/12			For the Period 3/31/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	8.57		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.09			0.09
Net realized and unrealized gain (loss)		1.11			(1.47	)
Total from investment operations		1.20			(1.38	)
Less distributions from:
Net investment income		(0.07	)		(0.05	)
Total distributions		(0.07	)		(0.05	)
Redemption fees		—	(c)		—	(c)
Net asset value, end of period	$	9.70		$	8.57
Total Return (b)		14.02	%		–13.79	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	125,019		$	56,527
Ratios to average net assets:
Net expenses (d)		1.30	%		1.30	%
Gross expenses (d)		1.57	%		2.23	%
Net investment income (d)		1.01	%		1.34	%
Portfolio turnover rate		160	%		98	%

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/12			For the Period 3/31/11* to 12/31/11
Open Shares
Net asset value, beginning of period	$	8.59		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.08			0.07
Net realized and unrealized gain (loss)		1.08			(1.46	)
Total from investment operations		1.16			(1.39	)
Less distributions from:
Net investment income		(0.04	)		(0.02	)
Total distributions		(0.04	)		(0.02	)
Redemption fees		—			—	(c)
Net asset value, end of period	$	9.71		$	8.59
Total Return (b)		13.28	%		–13.67	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	858		$	262
Ratios to average net assets:
Net expenses (d)		1.60	%		1.60	%
Gross expenses (d)		3.82	%		16.96	%
Net investment income (d)		0.82	%		1.00	%
Portfolio turnover rate		160	%		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.

Annual Report  147

LAZARD EMERGING MARKETS DEBT PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/12			For the Period 2/28/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	9.76		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.48			0.34
Net realized and unrealized gain (loss)		1.33			(0.17	)
Total from investment operations		1.81			0.17
Less distributions from:
Net investment income		(0.48	)		(0.40	)
Net realized gains		(0.24	)		(0.01	)
Total distributions		(0.72	)		(0.41	)
Redemption fees		—	(c)		—
Net asset value, end of period	$	10.85		$	9.76
Total Return (b)		18.95	%		1.64	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	286,163		$	106,813
Ratios to average net assets:
Net expenses (d)		1.00	%		1.04	%
Gross expenses (d)		1.03	%		1.67	%
Net investment income (d)		4.60	%		4.14	%
Portfolio turnover rate		220	%		108	%

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/12			For the Period 2/28/11* to 12/31/11
Open Shares
Net asset value, beginning of period	$	9.77		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.45			0.33
Net realized and unrealized gain (loss)		1.35			(0.20	)
Total from investment operations		1.80			0.13
Less distributions from:
Net investment income		(0.45	)		(0.35	)
Net realized gains		(0.24	)		(0.01	)
Total distributions		(0.69	)		(0.36	)
Redemption fees		—	(c)		—
Net asset value, end of period	$	10.88		$	9.77
Total Return (b)		18.68	%		1.34	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	1,138		$	128
Ratios to average net assets:
Net expenses (d)		1.30	%		1.39	%
Gross expenses (d)		2.97	%		16.28	%
Net investment income (d)		4.26	%		3.84	%
Portfolio turnover rate		220	%		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)	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.

148  Annual Report

LAZARD U.S. REALTY INCOME PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/12			For the Period 9/26/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	7.46		$	9.73
Income from investment operations:
Net investment income (a)		0.49			0.16
Net realized and unrealized gain		1.23			0.55
Total from investment operations		1.72			0.71
Less distributions from:
Net investment income		(0.37	)		(0.24	)
Net realized gains		(0.24	)		(2.74	)
Total distributions		(0.61	)		(2.98	)
Redemption fees		—	(c)		—
Net asset value, end of period	$	8.57		$	7.46
Total Return (b)		23.32	%		9.71	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	52,024		$	19,849
Ratios to average net assets:
Net expenses (d)		1.15	%		1.15	%
Gross expenses (d)		1.16	%		2.31	%
Net investment income (d)		5.94	%		8.26	%
Portfolio turnover rate		42	%		89	%

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/12			For the Period 6/1/11 to 12/31/11			Year Ended						For the Period 7/30/08** to 5/31/09
							5/31/11			5/31/10
Open Shares
Net asset value, beginning of period	$	7.45		$	11.34		$	10.78		$	6.79		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.51			0.44			0.32			0.48			0.41
Net realized and unrealized gain (loss)		1.19			(1.21	)		2.05			4.10			(3.26	)
Total from investment operations		1.70			(0.77	)		2.37			4.58			(2.85	)
Less distributions from:
Net investment income		(0.35	)		(0.38	)		(0.64	)		(0.59	)		(0.36	)
Net realized gains		(0.24	)		(2.74	)		(1.17	)		—			—
Total distributions		(0.59	)		(3.12	)		(1.81	)		(0.59	)		(0.36	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of period	$	8.56		$	7.45		$	11.34		$	10.78		$	6.79
Total Return (b)		23.00	%		–4.82	%		23.27	%		69.50	%		–27.15	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	55,393		$	6,007		$	15,830		$	9,864		$	3,817
Ratios to average net assets:
Net expenses (d)		1.45	%		1.47	%		1.48	%		1.48	%		1.48	%
Gross expenses (d)		1.47	%		3.05	%		2.42	%		4.20	%		19.67	%
Net investment income (d)		6.18	%		7.49	%		2.81	%		5.14	%		8.19	%
Portfolio turnover rate		42	%		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)	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 149

LAZARD U.S. REALTY EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/12			For the Period 9/26/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	14.89		$	15.76
Income from investment operations:
Net investment income (a)		0.31			0.10
Net realized and unrealized gain		2.79			2.91
Total from investment operations		3.10			3.01
Less distributions from:
Net investment income		(0.17	)		(0.12	)
Net realized gains		(0.42	)		(3.76	)
Total distributions		(0.59	)		(3.88	)
Redemption fees		—	(c)		—
Net asset value, end of period	$	17.40		$	14.89
Total Return (b)		20.83	%		20.84	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,794		$	1,525
Ratios to average net assets:
Net expenses (d)		1.20	%		1.20	%
Gross expenses (d)		2.34	%		13.07	%
Net investment income (d)		1.86	%		2.32	%
Portfolio turnover rate		52	%		63	%

	Year Ended 12/31/12			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	$	14.92		$	19.49		$	16.66		$	10.76		$	10.00
Income (loss) from investment operations:
Net investment income (loss) (a)		0.30			0.14			(0.07	)		0.05			0.14
Net realized and unrealized gain (loss)		2.76			(0.90	)		5.17			7.26			0.62
Total from investment operations		3.06			(0.76	)		5.10			7.31			0.76
Less distributions from:
Net investment income		(0.12	)		(0.06	)		(0.04	)		(0.17	)		—
Net realized gains		(0.42	)		(3.76	)		(2.23	)		(1.24	)		—
Total distributions		(0.54	)		(3.82	)		(2.27	)		(1.41	)		—
Redemption fees		0.01			0.01			—	(c)		—			—
Net asset value, end of period	$	17.45		$	14.92		$	19.49		$	16.66		$	10.76
Total Return (b)		20.58	%		–2.44	%		33.01	%		70.16	%		7.60	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	65,387		$	1,138		$	4,852		$	2,463		$	110
Ratios to average net assets:
Net expenses (d)		1.50	%		1.80	%		1.93	%		2.00	%		2.00	%
Gross expenses (d)		1.78	%		7.48	%		5.66	%		17.23	%		214.80	%
Net investment income (loss) (d)		1.74	%		1.36	%		–0.41	%		0.32	%		3.52	%
Portfolio turnover rate		52	%		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)	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.

150 Annual Report

LAZARD INTERNATIONAL REALTY EQUITY PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/12			For the Period 9/26/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	12.18		$	13.08
Income from investment operations:
Net investment income (a)		0.22			0.03
Net realized and unrealized gain		5.27			0.05
Total from investment operations		5.49			0.08
Less distributions from:
Net investment income		(0.57	)		(0.75	)
Net realized gains		(0.12	)		(0.23	)
Total distributions		(0.69	)		(0.98	)
Redemption fees		—	(c)		—
Net asset value, end of period	$	16.98		$	12.18
Total Return (b)		45.14	%		0.09	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,797		$	1,914
Ratios to average net assets:
Net expenses (d)		1.30	%		1.30	%
Gross expenses (d)		5.84	%		17.38	%
Net investment income (d)		1.50	%		0.83	%
Portfolio turnover rate		42	%		41	%

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/12			For the Period 6/1/11 to 12/31/11			Year Ended						For the Period 12/31/08** to 5/31/09
							5/31/11			5/31/10
Open Shares
Net asset value, beginning of period	$	12.17		$	16.98		$	14.54		$	15.39		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.19			0.06			0.16			0.28			0.10
Net realized and unrealized gain (loss)		5.25			(3.89	)		3.99			1.40			5.29
Total from investment operations		5.44			(3.83	)		4.15			1.68			5.39
Less distributions from:
Net investment income		(0.52	)		(0.75	)		(0.55	)		(1.51	)		—
Net realized gains		(0.12	)		(0.23	)		(1.16	)		(1.05	)		—
Total distributions		(0.64	)		(0.98	)		(1.71	)		(2.56	)		—
Redemption fees		—	(c)		—			—	(c)		0.03			—
Net asset value, end of period	$	16.97		$	12.17		$	16.98		$	14.54		$	15.39
Total Return (b)		44.81	%		–22.98	%		29.13	%		9.65	%		53.90	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	2,209		$	667		$	1,716		$	1,427		$	424
Ratios to average net assets:
Net expenses (d)		1.60	%		1.84	%		1.96	%		2.00	%		2.00	%
Gross expenses (d)		6.13	%		16.46	%		14.35	%		25.27	%		116.23	%
Net investment income (d)		1.25	%		0.66	%		0.98	%		1.71	%		1.90	%
Portfolio turnover rate		42	%		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.

Annual Report  151

LAZARD U.S. HIGH YIELD PORTFOLIO

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Institutional Shares
Net asset value, beginning of year	$	4.78		$	4.88		$	4.70		$	3.78		$	5.15
Income (loss) from investment operations:
Net investment income (a)		0.33			0.35			0.35			0.34			0.38
Net realized and unrealized gain (loss)		0.23			(0.10	)		0.18			0.92			(1.37	)
Total from investment operations		0.56			0.25			0.53			1.26			(0.99	)
Less distributions from:
Net investment income		(0.33	)		(0.35	)		(0.35	)		(0.34	)		(0.38	)
Total distributions		(0.33	)		(0.35	)		(0.35	)		(0.34	)		(0.38	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	5.01		$	4.78		$	4.88		$	4.70		$	3.78
Total Return (b)		12.02	%		5.17	%		11.78	%		34.66	%		–20.24	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	182,749		$	151,278		$	112,427		$	87,568		$	34,262
Ratios to average net assets:
Net expenses		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Gross expenses		0.71	%		0.73	%		0.80	%		0.89	%		1.00	%
Net investment income		6.67	%		7.13	%		7.38	%		7.96	%		8.10	%
Portfolio turnover rate		26	%		27	%		25	%		17	%		33	%

Selected data for a share of capital stock outstanding throughout each year	Year Ended
	12/31/12			12/31/11			12/31/10			12/31/09			12/31/08
Open Shares
Net asset value, beginning of year	$	4.80		$	4.90		$	4.73		$	3.79		$	5.17
Income (loss) from investment operations:
Net investment income (a)		0.32			0.33			0.34			0.33			0.37
Net realized and unrealized gain (loss)		0.24			(0.10	)		0.17			0.94			(1.38	)
Total from investment operations		0.56			0.23			0.51			1.27			(1.01	)
Less distributions from:
Net investment income		(0.32	)		(0.33	)		(0.34	)		(0.33	)		(0.37	)
Total distributions		(0.32	)		(0.33	)		(0.34	)		(0.33	)		(0.37	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of year	$	5.04		$	4.80		$	4.90		$	4.73		$	3.79
Total Return (b)		11.89	%		4.89	%		11.19	%		34.40	%		–20.35	%
Ratios and Supplemental Data:
Net assets, end of year (in thousands)	$	4,249		$	11,602		$	26,266		$	6,126		$	5,220
Ratios to average net assets:
Net expenses		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Gross expenses		1.24	%		1.08	%		1.13	%		1.21	%		1.74	%
Net investment income		6.37	%		6.72	%		7.05	%		7.74	%		7.89	%
Portfolio turnover rate		26	%		27	%		25	%		17	%		33	%

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

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

152  Annual Report

LAZARD U.S. MUNICIPAL PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/12			For the Period 2/28/11* to 12/31/11
Institutional Shares
Net asset value, beginning of period	$	10.23		$	10.00
Income from investment operations:
Net investment income (a)		0.14			0.17
Net realized and unrealized gain		0.12			0.27
Total from investment operations		0.26			0.44
Less distributions from:
Net investment income		(0.14	)		(0.17	)
Net realized gains		(0.04	)		(0.04	)
Total distributions		(0.18	)		(0.21	)
Redemption fees		—	(c)		—	(c)
Net asset value, end of period	$	10.31		$	10.23
Total Return (b)		2.54	%		4.46	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	19,726		$	11,594
Ratios to average net assets:
Net expenses (d)		0.40	%		0.40	%
Gross expenses (d)		1.41	%		3.09	%
Net investment income (d)		1.34	%		1.97	%
Portfolio turnover rate		77	%		60	%

Selected data for a share of capital stock outstanding throughout each period	Year Ended 12/31/12			For the Period 2/28/11* to 12/31/11
Open Shares
Net asset value, beginning of period	$	10.23		$	10.00
Income from investment operations:
Net investment income (a)		0.14			0.14
Net realized and unrealized gain		0.09			0.28
Total from investment operations		0.23			0.42
Less distributions from:
Net investment income		(0.11	)		(0.15	)
Net realized gains		(0.04	)		(0.04	)
Total distributions		(0.15	)		(0.19	)
Net asset value, end of period	$	10.31		$	10.23
Total Return (b)		2.24	%		4.20	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4		$	103
Ratios to average net assets:
Net expenses (d)		0.70	%		0.70	%
Gross expenses (d)		38.11	%		18.49	%
Net investment income (d)		1.32	%		1.69	%
Portfolio turnover rate		77	%		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.

Annual Report  153

LAZARD GLOBAL FIXED INCOME PORTFOLIO

Selected data for a share of capital stock outstanding throughout the period	For the Period 3/30/12* to 12/31/12
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		0.16
Total from investment operations		0.33
Less distributions from:
Net investment income		(0.07	)
Return of capital		(0.10	)
Total distributions		(0.17	)
Net asset value, end of period	$	10.16
Total Return (b)		3.30	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	4,814
Ratios to average net assets:
Net expenses (c)		0.80	%
Gross expenses (c)		8.81	%
Net investment income (c)		2.24	%
Portfolio turnover rate		47	%

Selected data for a share of capital stock outstanding throughout the period	For the Period 3/30/12* to 12/31/12
Open Shares
Net asset value, beginning of period	$	10.00
Income from investment operations:
Net investment income (a)		0.15
Net realized and unrealized gain		0.16
Total from investment operations		0.31
Less distributions from:
Net investment income		(0.06	)
Return of capital		(0.09	)
Total distributions		(0.15	)
Net asset value, end of period	$	10.16
Total Return (b)		3.08	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	55
Ratios to average net assets:
Net expenses (c)		1.10	%
Gross expenses (c)		26.46	%
Net investment income (c)		2.02	%
Portfolio turnover rate		47	%

*	Portfolio commenced operations on March 30, 2012.
(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.

154  Annual Report

LAZARD CAPITAL ALLOCATOR OPPORTUNISTIC STRATEGIES PORTFOLIO

Selected data for a share of capital stock outstanding throughout each period	Year Ended												For the Period 3/26/08* to 12/31/08
	12/31/12			12/31/11			12/31/10			12/31/09
Institutional Shares
Net asset value, beginning of period	$	9.26		$	9.96		$	8.80		$	7.36		$	10.00
Income (loss) from investment operations:
Net investment income (a)		0.11			0.12			0.12			0.14			0.21
Net realized and unrealized gain (loss)		0.74			(0.45	)		1.16			1.42			(2.59	)
Total from investment operations		0.85			(0.33	)		1.28			1.56			(2.38	)
Less distributions from:
Net investment income		(0.08	)		(0.13	)		(0.12	)		(0.12	)		(0.26	)
Net realized gains		—			(0.24	)		—			—			—
Total distributions		(0.08	)		(0.37	)		(0.12	)		(0.12	)		(0.26	)
Redemption fees		—	(c)		—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of period	$	10.03		$	9.26		$	9.96		$	8.80		$	7.36
Total Return (b)		9.16	%		–3.28	%		14.58	%		21.21	%		–23.64	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	224,982		$	258,832		$	239,403		$	195,939		$	110,757
Ratios to average net assets:
Net expenses (d)		1.02	%		1.02	%		1.02	%		1.02	%		1.02	%
Gross expenses (d)		1.12	%		1.13	%		1.13	%		1.16	%		1.27	%
Net investment income (d)		1.13	%		1.25	%		1.36	%		1.72	%		3.01	%
Portfolio turnover rate		139	%		155	%		117	%		113	%		94	%

Selected data for a share of capital stock outstanding throughout each period	Year Ended												For the Period 3/31/08* to 12/31/08
	12/31/12			12/31/11			12/31/10			12/31/09
Open Shares
Net asset value, beginning of period	$	9.26		$	9.97		$	8.80		$	7.37		$	9.95
Income (loss) from investment operations:
Net investment income (a)		0.07			0.08			0.06			0.12			0.30
Net realized and unrealized gain (loss)		0.75			(0.45	)		1.20			1.41			(2.64	)
Total from investment operations		0.82			(0.37	)		1.26			1.53			(2.34	)
Less distributions from:
Net investment income		(0.05	)		(0.10	)		(0.09	)		(0.10	)		(0.24	)
Net realized gains		—			(0.24	)		—			—			—
Total distributions		(0.05	)		(0.34	)		(0.09	)		(0.10	)		(0.24	)
Redemption fees		—			—	(c)		—	(c)		—	(c)		—	(c)
Net asset value, end of period	$	10.03		$	9.26		$	9.97		$	8.80		$	7.37
Total Return (b)		8.84	%		–3.72	%		14.35	%		20.71	%		–23.44	%
Ratios and Supplemental Data:
Net assets, end of period (in thousands)	$	3,099		$	6,111		$	7,163		$	16,856		$	9,319
Ratios to average net assets:
Net expenses (d)		1.32	%		1.32	%		1.32	%		1.32	%		1.32	%
Gross expenses (d)		1.67	%		1.57	%		1.52	%		1.44	%		1.93	%
Net investment income (d)		0.69	%		0.77	%		0.66	%		1.44	%		4.68	%
Portfolio turnover rate		139	%		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  155

The Lazard Funds, Inc. Notes to Financial Statements December 31, 2012

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 which comprise of twenty-two no-load portfolios (each referred to as a “Portfolio”), as follows: Lazard U.S. Equity Concentrated Portfolio (formerly, 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, Lazard Emerging Markets Debt Portfolio, Lazard U.S. Realty Income Portfolio, Lazard U.S. Realty Equity Portfolio, Lazard International Realty Equity Portfolio, Lazard U.S. High Yield Portfolio, Lazard U.S. Municipal Portfolio, Lazard Global Fixed Income Portfolio (commenced investment operations on March 30, 2012), Lazard Multi-Asset Targeted Volatility Portfolio, and Lazard Capital Allocator Opportunistic Strategies Portfolio. The Fund offers two different classes of shares of the Portfolios—Institutional Shares and Open Shares. Institutional Shares and Open Shares are identical, except as to minimum investment requirements and the services offered to and expenses borne by each class of shares. All Portfolios, other than the U.S. Equity Concentrated Portfolio, the Emerging Markets Debt Portfolio, the U.S. Realty Equity Portfolio and the International Realty Equity Portfolio, are operated as “diversified” funds, as defined in the Act. Multi-Asset Targeted Volatility Portfolio had not commenced operations as of December 31, 2012.

Pursuant to an Agreement and Plan of reorganization dated as of June 29, 2011 (the “Plan”), between Trust for Professional Managers, on behalf of each 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 shareholders of the respective G&E Portfolios became shareholders of 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.

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”), NASDAQ national market or other U.S. or foreign exchanges or markets are generally based on the last reported sales price on the exchange or market on which the security is principally 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 most recent quoted 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. Exchange-traded options are valued at the last sales prices at the close of business on the exchanges on which they trade (which is normally 4:10 p.m. Eastern time). Swap agreements, such as credit default and interest rate swap agreements and swap agreements with respect to equity securities, are valued by an independent pricing service. Forward currency contracts are valued using quotations from an independent pricing service. 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 independent pricing services which are based primarily on institutional trading in similar groups of securities, or by using brokers’ quotations or a matrix system which considers such factors as other security prices, yields and maturities. Debt securities maturing in 60 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, which meets periodically under the direction of the Board, may evaluate a variety of factors to determine the fair value of securities for which market quotations are determined not

156  Annual Report

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 an independent 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 or relevant ADRs or future contracts. 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.

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.

(b) Portfolio Securities Transactions and Investment Income—Portfolio securities transactions are accounted for on trade date. Realized gain (loss) on sales of investments are recorded on a specific identification basis. Dividend income is recorded on the ex-dividend date and interest income is accrued daily. The Portfolios amortize premiums and accrete discounts on fixed-income securities using the effective yield method. For the year or period ended December 31, 2012, Emerging Markets Multi-Strategy Portfolio, Emerging Markets Debt Portfolio, U.S. High Yield Portfolio, U.S. Municipal Portfolio and Global Fixed Income 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 and forward currency contracts represents net foreign currency gain (loss) from forward currency contracts, disposition of foreign currencies, currency gain (loss) realized between the trade and settlement dates on securities transactions, and the difference between the amount of dividends, interest and foreign withholding taxes recorded on a Portfolio’s accounting records and the U.S. dollar equivalent amounts actually received or paid. Net change in unrealized appreciation (depreciation) on foreign currency reflects the impact of changes in exchange rates on the value of assets and liabilities, other than investments in securities, during the period.

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

Annual Report  157

The U.S. dollar value of forward currency contracts is determined using quotations provided by an independent pricing service. 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.

For the year or period ended December 31, 2012, Global Listed Infrastructure Portfolio, Emerging Markets Multi-Strategy Portfolio, Emerging Markets Debt Portfolio, Global Fixed Income Portfolio and Capital Allocator Opportunistic Strategies Portfolio traded in forward currency contracts.

(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 ended December 31, 2012, 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 year		26,700		$	65,019
Options purchased		5,958,700			446,449
Options sold		(2,896,760	)		(132,416	)
Options exercised		(1,668,840	)		(137,373	)
Options expired		(1,170,300	)		(106,775	)
Options outstanding at end of year		249,500		$	134,904
Written Options	Number of Contracts			Premiums
Options outstanding at beginning of year		23,000		$	22,458
Options written		293,300			95,848
Options repurchased		(66,800	)		(49,523	)
Options exercised		(9,200	)		(10,047	)
Options expired		(140,300	)		(53,443	)
Options outstanding at end of year		100,000		$	5,293
Emerging Markets Debt Portfolio
Purchased Options	Number of Contracts			Amount
Options outstanding at beginning of year		97,800		$	244,081
Options purchased		18,658,950			2,435,218
Options sold		(8,278,700	)		(393,959	)
Options exercised		(7,197,900	)		(470,821	)
Options expired		(596,650	)		(557,345	)
Options outstanding at end of year		2,683,500		$	1,257,174
Written Options	Number of Contracts			Premiums
Options outstanding at beginning of year		74,000		$	72,635
Options written		1,577,500			465,341
Options repurchased		(248,700	)		(188,263	)
Options exercised		(45,500	)		(39,730	)
Options expired		(257,300	)		(251,760	)
Options outstanding at end of year		1,100,000		$	58,223
Capital Allocator Opportunistic Strategies Portfolio
Purchased Options	Number of Contracts			Amount
Options outstanding at beginning of year		7,084		$	4,317,455
Options purchased		2,000			443,890
Options sold		(2,000	)		(443,890	)
Options expired		(7,084	)		(4,317,455	)
Options outstanding at end of year		—		$	—

158  Annual Report

Written Options	Number of Contracts			Premiums
Options outstanding at beginning of year		—		$	—
Options written		500			58,624
Options expired		(500	)		(58,624	)
Options outstanding at end of year		—		$	—

None of the other Portfolios in the Fund traded in options during the year ended December 31, 2012.

(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 specified benchmark, or (vi) basis swaps, under which two parties can exchange variable interest rates based on different money markets.

Swap agreements are valued by an independent pricing service, and the change in value, if any, is recorded as an unrealized appreciation (depreciation) on swap agreements in the Portfolios’ accompanying Statements of Assets and Liabilities.

For the year ended December 31, 2012, Emerging Markets Multi-Strategy Portfolio, Emerging Markets Debt Portfolio and Capital Allocator Opportunistic Strategies Portfolio traded in swap agreements with average notional amounts, which are indicative of the volume for the year, of $362,387,601, $88,673,074 and $23,294,223, respectively.

(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, 2012, 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 Concentrated	$	—	$	1,153,346
U.S. Strategic Equity		—		10,118,579
U.S. Mid Cap Equity		19,858,062		40,427,588
International Equity		—		28,075,337
International Equity Select		521,216		2,653,216
International Strategic Equity		9,052,875		60,710,573
International Small Cap Equity		24,812,113		50,821,243
U.S. High Yield		1,590,672		5,346,242
Portfolio			Expiring 2018
International Equity			$	5,103,235
International Equity Select				1,173,332
International Small Cap Equity				4,306,477

Annual Report  159

Portfolio	Unlimited Short-Term Capital Losses		Unlimited Long-Term Capital Losses
Developing Markets Equity	$	9,514,972	$	16,296,553
Emerging Markets Equity Blend		4,287,044		2,717,382
Emerging Markets Multi-Strategy		—		650,151
U.S. High Yield		137,783		571,210

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, 2012, the following Portfolios elected to defer net capital and foreign currency losses arising between November 1, 2012 and December 31, 2012 as follows:

Portfolio	Amount
Global Listed Infrastructure	$	258,725
International Strategic Equity		613,605
Emerging Markets Equity		129,418,892
Emerging Markets Equity Blend		490,670
Emerging Markets Multi-Strategy		329,755
Global Fixed Income		60,411

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 became 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. 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 carryforwards 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 (2009–2011), or expected to be taken in the Portfolios’ 2012 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, U.S. Municipal and Global Fixed Income 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 and U.S. Realty Income Portfolios’ 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 carryfor-wards 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.

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, passive foreign investment companies 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 or periods ended December 31 was as follows:

	Ordinary Income				Long-Term Capital Gain
Portfolio	2012		2011		2012		2011
U.S. Equity Concentrated Institutional	$	1,071,583	$	198,163	$	—	$	—
Open		4,154		4,595		—		—
U.S. Strategic Equity Institutional		1,706,939		576,867		—		—
Open		147,376		58,180		—		—
U.S. Mid Cap Equity Institutional		93,028		289,121		—		—
Open		25,552		10,886		—		—
U.S. Small- Mid Cap Equity Institutional		1,653,812		8,904,379		5,732,772		7,821,680
Open		136,415		993,743		472,867		872,912
Global Listed Infrastructure Institutional		4,836,897		2,996,156		1,355,921		2,473,074
Open		459,502		70,156		128,812		57,908

160  Annual Report

	Ordinary Income				Long-Term Capital Gain
Portfolio	2012		2011		2012		2011
International Equity Institutional	$	3,557,160	$	2,126,498	$	—	$	—
Open		681,741		635,263		—		—
International Equity Select Institutional		142,879		107,555		—		—
Open		56,933		74,627		—		—
International Strategic Equity Institutional		8,123,755		5,917,381		—		—
Open		2,129,693		521,056		—		—
International Small Cap Equity Institutional		1,259,891		782,430		—		—
Open		406,288		325,694		—		—
Emerging Markets Equity Institutional		233,749,133		339,762,093		419,249,109		321,878,689
Open		37,813,360		92,979,579		80,701,164		88,085,591
Developing Markets Equity Institutional		2,990,604		4,472,235		—		1,768,253
Open		543,087		2,551,532		—		1,008,837
Emerging Markets Equity Blend Institutional		1,818,322		1,130,956		—		—
Open		234,422		180,551		—		—
Emerging Markets Multi-Strategy Institutional		878,676		334,780		—		—
Open		3,690		695		—		—
Emerging Markets Debt Institutional		15,436,087		2,175,652		23,439		—
Open		59,098		5,728		90		—
U.S. Realty Income Institutional		3,236,784		451,179		234,930		635,068
Open		1,799,757		290,713		130,628		409,201
U.S. Realty Equity Institutional		86,390		75,467		16,085		110,780
Open		1,629,578		169,915		303,400		249,426
International Realty Equity Institutional		112,946		39,349		—		15,303
Open		77,927		30,500		—		11,862
U.S. High Yield Institutional		11,731,153		9,192,387		—		—
Open		296,232		1,376,010		—		—

	Ordinary Income				Long-Term Capital Gain
Portfolio	2012		2011		2012		2011
U.S. Municipal Institutional	$	61,069	$	2,672	$	7,407	$	48,175
Open		1,120		26		136		463
Global Fixed Income* Institutional		27,809		—		—		—
Open		227		—		—		—
Capital Allocator Opportunistic Strategies Institutional		1,418,514		2,893,565		307,373		7,276,834
Open		25,135		80,197		5,446		201,681

*     Global Fixed Income Portfolio had $44,420 return of capital distributions.

As of December 31, 2012, 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 Concentrated	$	3,816	$	—	$	6,851,011		$	13,472
U.S. Strategic Equity		210,232		—		9,279,453			—
U.S. Mid Cap Equity		178,968		—		888,188			—
U.S. Small-Mid Cap Equity		1,195,091		2,534,795		14,818,292			—
Global Listed Infrastructure		—		719,219		841,046			(258,726	)
International Equity		104,592		—		20,403,456			—
International Equity Select		36,595		—		1,142,992			—
International Strategic Equity		1,270,857		—		182,279,802			13,816
International Small Cap Equity		178,307		—		12,039,467			(1	)
Emerging Markets Equity		—		—		1,774,269,923			(1	)
Developing Markets Equity		1,254,793		—		(3,597,093	)		31,214
Emerging Markets Equity Blend		387,399		—		7,186,629			30,161
Emerging Markets Multi-Strategy		407,576		—		4,229,245			40,718

Annual Report  161

Portfolio	Undistributed Ordinary Income		Undistributed Long-Term Capital Gain		Net Unrealized Appreciation Including Foreign Currency		Other Temporary Differences
Emerging Markets Debt	$	1,892,978	$	369,089	$	14,773,477	$	73,388
U.S. Realty Income		—		90,069		6,491,893		1
U.S. Realty Equity		—		64,151		2,567,984		—
International Realty Equity		86,166		1,963		773,404		1
U.S. High Yield		—		—		10,086,351		109,177
U.S. Municipal*		81,690		64,767		223,602		45,377
Global Fixed Income		—		—		176,857		8,650
Capital Allocator Opportunistic Strategies		—		721,700		4,518,536		18,095

* U.S. Municipal Portfolio had $245,864 in tax exempt distributions and $45,077 of undistributed tax exempt income.

(i) Offering Costs—Cost incurred by the Fund in connection with the offering of shares of a new Portfolio are deferred and amortized on a straight line basis over a twelve-month period from the date of commencement of operations of the Portfolio.

(j) 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.

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

(l) 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.

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

3. Investment Management, Administration, Distribution and Transfer Agency Agreements

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

Portfolio	Annual Rate
U.S. Equity Concentrated		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
International Small Cap Equity		0.75
Emerging Markets Equity		1.00
Developing Markets Equity		1.00
Emerging Markets Equity Blend*		1.00
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
Global Fixed Income		0.50
Capital Allocator Opportunistic Strategies		1.00

* From January 1, 2012 through November 13, 2012, the annual rate was 1.05%.

162  Annual Report

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

Portfolio	Institutional Shares			Open Shares
U.S. Equity Concentrated*		0.95	%		1.25	%
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**		1.30			1.60
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
Global Fixed Income		0.80			1.10
Capital Allocator Opportunistic Strategies		1.02			1.32

*	From January 1, 2012 to May 30, 2012, the expense caps were 0.75% and 1.05% for Institutional Shares and Open Shares, respectively.
**	Effective November 14, 2012, the Investment Manager voluntarily agreed to lower the expense cap from 1.35% to 1.30% and 1.65% to 1.60% for Institutional Shares and Open Shares, respectively.

During the year or period ended December 31, 2012, 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 Concentrated	$	184,811	$	—	$	2,914	$	12,221
U.S. Strategic Equity		174,038		—		28,273		—
International Equity Select		40,501		103,554		22,404		65,064
International Small Cap Equity		21,774		—		8,848		—
Emerging Markets Equity
Blend		—		—		39,603		—

	Institutional Shares				Open Shares
Portfolio	Management Fees Waived		Expenses Reimbursed		Management Fees Waived		Expenses Reimbursed
Emerging Markets Multi-Strategy	$	216,120	$	—	$	6,517	$	7,951
Emerging Markets Debt		54,055		—		6,154		6,668
U.S. Realty Income		—		—		3,268		—
U.S. Realty Equity		15,593		3,374		99,227		—
International Realty Equity		21,227		71,755		14,646		48,443
U.S. High Yield		274,521		—		17,997		—
U.S. Municipal		45,932		120,576		93		13,726
Global Fixed Income		15,992		214,854		131		6,291
Capital Allocator Opportunistic Strategies		258,811		—		15,592		—

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, 2012, State Street waived its fees as follows:

Portfolio	Amount
U.S. Equity Concentrated	$	7,813
U.S. Realty Equity		4,688
International Realty Equity		18,750
U.S. Municipal		18,750
Global Fixed Income		14,063

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 serv-

Annual Report 163

icing 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, 2012, BFDS waived its fees as follows:

Portfolio	Amounts
U.S. Realty Income	$	3,580
U.S. Realty Equity		3,538
International Realty Equity		5,955
Global Fixed Income		11,384

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 $100,000, (2) a per meeting in person regular or special meeting fee of $5,000 ($1,500 for telephonic participation), including Board, committee, subcommittee or other special meetings specifically authorized by the Board and held in connection with delegated Fund business, and (3) a telephone Audit Committee or special Board meeting fee of $1,500, with an additional annual fee for the Audit Committee Chairman 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, 2012 were as follows:

Portfolio	Purchases		Sales
U.S. Equity Concentrated	$	146,825,802	$	57,763,220
U.S. Strategic Equity		49,043,640		47,778,376
U.S. Mid Cap Equity		106,720,406		185,861,545
U.S. Small-Mid Cap Equity		303,043,435		216,634,601
Global Listed Infrastructure		43,137,113		32,519,665
International Equity		62,075,326		52,585,982
International Equity Select		5,483,674		3,330,901
International Strategic Equity		888,363,515		400,131,752
International Small Cap Equity		28,340,472		31,643,253
Emerging Markets Equity		3,460,130,500		3,960,698,714
Developing Markets Equity		357,987,730		196,981,552
Emerging Markets Equity Blend		190,073,958		88,069,776
Emerging Markets Multi-Strategy		137,008,505		89,685,954
Emerging Markets Debt		404,215,760		503,958,025
U.S. Realty Income		89,991,683		23,320,196
U.S. Realty Equity		77,655,615		19,151,260
International Realty Equity		2,651,780		1,614,378
U.S. High Yield		57,198,204		44,224,502
U.S. Municipal		21,128,335		13,313,631
Global Fixed Income		6,777,381		1,935,544
Capital Allocator Opportunistic Strategies		307,890,536		366,237,972
	U.S. Government Securities
Portfolio	Purchases		Sales
Emerging Markets Multi-Strategy	$	25,124,454	$	12,604,049

For the year or period ended December 31, 2012, no brokerage commissions were paid to affiliates of the Investment Manager or other affiliates of the Fund for portfolio transactions executed on behalf of the Fund.

6. Line of Credit
The Fund has a $50 million Line of Credit Agreement (the “Agreement”) with State Street, primarily for temporary or emergency purposes, including the meeting of redemption requests that otherwise might require the untimely disposition of securities. Interest on borrowings was payable at the higher of the Federal Funds rate or Overnight LIBOR rate plus 1.00%, on an annualized basis. Under the Agreement, the Fund has also agreed to pay a 0.10% per annum fee on the unused portion of the commitment, payable quarterly in

164  Annual Report

arrears. During the year or period ended December 31, 2012, 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 Concentrated	$	100,000	$	100,000		1.17	%		1
U.S. Strategic Equity		720,000		720,000		1.18			1
U.S. Mid Cap Equity		4,135,278		25,800,000		1.17			11
U.S. Small-Mid Cap Equity		21,000,000		21,000,000		1.19			3
Global Listed Infrastructure		548,750		1,060,000		1.15			8
International Equity		3,800,000		4,200,000		1.16			3
International Equity Select		486,091		743,000		1.15			11
International Strategic Equity		4,700,000		4,700,000		1.19			1
International Small Cap Equity		329,230		520,000		1.16			13
Emerging Markets Equity		21,725,714		45,570,000		1.16			7
Deverloping Markets Equity		415,000		480,000		1.19			8
Emerging Markets Debt		545,000		1,000,000		1.19			8
International Realty Equity		17,271		30,000		1.17			14
U.S. High Yield		6,500,000		6,500,000		1.17			2
U.S. Municipal		4,000		4,000		1.17			1
Global Fixed Income		40,000		60,000		1.19			4

* For days borrowings were outstanding.

The line of credit outstanding as of December 31, 2012 approximates its fair value and would be categorized at Level 2.

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. A Portfolio’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  165

The following tables summarize the valuation of the Portfolios’ investments by each fair value hierarchy level as of December 31, 2012:

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, 2012
U.S. Equity Concentrated Portfolio
Common Stocks	$	108,026,195	$	—		$	—	$	108,026,195
Short-Term Investment		—		13,156,276			—		13,156,276
Total	$	108,026,195	$	13,156,276		$	—	$	121,182,471
U.S. Strategic Equity Portfolio
Common Stocks	$	82,340,205	$	—		$	—	$	82,340,205
Preferred Stock		—		—			23,582		23,582
Short-Term Investment		—		1,324,107			—		1,324,107
Total	$	82,340,205	$	1,324,107		$	23,582	$	83,687,894
U.S. Mid Cap Equity Portfolio
Common Stocks	$	71,385,009	$	—		$	—	$	71,385,009
Preferred Stock		—		—			67,990		67,990
Short-Term Investment		—		923,402			—		923,402
Total	$	71,385,009	$	923,402		$	67,990	$	72,376,401
U.S. Small-Mid Cap Equity Portfolio
Common Stocks	$	299,918,171	$	—		$	—	$	299,918,171
Preferred Stock		—		—			23,551		23,551
Repurchase Agreement		—		10,244,000			—		10,244,000
Total	$	299,918,171	$	10,244,000		$	23,551	$	310,185,722
Global Listed Infrastructure Portfolio
Assets:
Common Stocks
Australia	$	—	$	20,479,830		$	—	$	20,479,830
Austria		—		3,800,703			—		3,800,703
France		—		6,988,960			—		6,988,960
Germany		—		8,552,630			—		8,552,630
Italy		—		37,281,791			—		37,281,791
Japan		—		14,431,523			—		14,431,523
Luxembourg		—		1,424,543			—		1,424,543
Mexico		1,535,411		—			—		1,535,411
South Korea		—		2,825,876			—		2,825,876
Spain		—		15,995,722			—		15,995,722
Switzerland		—		4,333,593			—		4,333,593
United Kingdom		—		1,433,956			—		1,433,956
United States		17,890,962		—			—		17,890,962
Short-Term Investment		—		1,995,764			—		1,995,764
Other Financial Instruments*
Forward Currency Contracts		—		1,355,765			—		1,355,765
Total	$	19,426,373	$	120,900,656		$	—	$	140,327,029
Liabilities:
Other Financial Instruments* Forward Currency Contracts	$	—	$	(2,842,927	)	$	—	$	(2,842,927	)

166  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, 2012
International Equity Portfolio
Common Stocks:
Australia	$	—	$	3,352,366	$	—	$	3,352,366
Belgium		—		4,640,772		—		4,640,772
Bermuda		—		863,547		—		863,547
Brazil		—		2,137,695		—		2,137,695
Canada		3,761,108		—		—		3,761,108
Finland		—		1,729,286		—		1,729,286
France		—		12,823,406		—		12,823,406
Germany		—		13,236,556		—		13,236,556
Indonesia		1,082,374		—		—		1,082,374
Ireland		1,045,540		—		—		1,045,540
Italy		—		3,935,498		—		3,935,498
Japan		—		20,514,004		—		20,514,004
Mexico		1,188,248		—		—		1,188,248
Netherlands		—		2,648,235		—		2,648,235
New Zealand		—		942,986		—		942,986
Philippines		—		744,366		—		744,366
Russia		—		1,962,999		—		1,962,999
South Africa		—		1,442,640		—		1,442,640
South Korea		—		3,377,317		—		3,377,317
Spain		—		3,262,006		—		3,262,006
Sweden		—		7,251,297		—		7,251,297
Switzerland		—		6,136,419		—		6,136,419
Thailand		—		1,369,757		—		1,369,757
Turkey		—		2,210,929		—		2,210,929
United Kingdom		—		29,919,079		—		29,919,079
Repurchase Agreement		—		3,105,000		—		3,105,000
Total	$	7,077,270	$	127,606,160	$	—	$	134,683,430
International Equity Select Portfolio
Common Stocks:
Australia	$	—	$	387,748	$	—	$	387,748
Belgium		—		370,877		—		370,877
Brazil		128,485		215,052		—		343,537
Canada		103,937		—		—		103,937
China		—		158,926		—		158,926
Finland		—		124,269		—		124,269
France		—		845,888		—		845,888
Germany		—		810,853		—		810,853
Hong Kong		185,673		—		—		185,673
Indonesia		142,959		115,012		—		257,971
Ireland		110,381		—		—		110,381
Italy		—		243,485		—		243,485
Japan		—		1,117,608		—		1,117,608
Macau		—		94,205		—		94,205
Mexico		92,874		—		—		92,874
Netherlands		—		126,926		—		126,926
Norway		—		88,829		—		88,829
Russia		125,160		225,001		—		350,161
South Africa		—		289,065		—		289,065
South Korea		—		417,682		—		417,682
Spain		—		78,756		—		78,756
Sweden		—		537,441		—		537,441
Switzerland		—		430,111		—		430,111
Taiwan		—		235,425		—		235,425
Thailand		—		170,792		—		170,792
Turkey		—		264,375		—		264,375
United Kingdom		—		2,084,117		—		2,084,117
Short-Term Investment		—		100,230		—		100,230
Total	$	889,469	$	9,532,673	$	—	$	10,422,142

Annual Report  167

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, 2012
International Strategic Equity Portfolio
Common Stocks:
Australia	$	—	$	85,974,362	$	—	$	85,974,362
Belgium		—		27,565,079		—		27,565,079
Bermuda		—		17,212,712		—		17,212,712
Brazil		—		28,179,357		—		28,179,357
Canada		12,085,448		—		—		12,085,448
Egypt		—		401,211		—		401,211
Finland		—		36,450,559		—		36,450,559
France		—		149,422,206		—		149,422,206
Germany		—		62,966,549		—		62,966,549
Indonesia		—		28,680,943		—		28,680,943
Ireland		17,255,524		20,918,418		—		38,173,942
Japan		—		133,820,422		—		133,820,422
Macau		—		11,257,953		—		11,257,953
Netherlands		—		27,744,249		—		27,744,249
Philippines		—		25,924,564		—		25,924,564
Russia		—		17,261,261		—		17,261,261
South Africa		—		54,586,852		—		54,586,852
Spain		—		15,847,017		—		15,847,017
Sweden		—		84,710,134		—		84,710,134
Switzerland		—		49,853,024		—		49,853,024
Thailand		—		14,589,099		—		14,589,099
Turkey		—		8,582,417		—		8,582,417
United Kingdom		—		249,396,759		—		249,396,759
Short-Term Investment		—		20,768,261		—		20,768,261
Total	$	29,340,972	$	1,172,113,408	$	—	$	1,201,454,380
International Small Cap Equity Portfolio
Common Stocks
Australia	$	—	$	3,974,264	$	—	$	3,974,264
Austria		—		2,300,509		—		2,300,509
Belgium		—		2,450,425		—		2,450,425
China		—		2,190,162		—		2,190,162
France		—		2,933,262		—		2,933,262
Germany		—		5,506,539		—		5,506,539
Italy		—		1,067,377		—		1,067,377
Japan		—		15,241,961		—		15,241,961
Mexico		648,882		—		—		648,882
Netherlands		—		1,363,490		—		1,363,490
Norway		—		2,580,294		—		2,580,294
Russia		—		669,021		—		669,021
Singapore		—		1,297,946		—		1,297,946
Sweden		—		4,030,956		—		4,030,956
Switzerland		—		1,163,517		—		1,163,517
United Kingdom		—		14,462,588		—		14,462,588
Preferred Stock		—		726,608		—		726,608
Short-Term Investment		—		379,335		—		379,335
Total	$	648,882	$	62,338,254	$	—	$	62,987,136

168  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, 2012
Emerging Markets Equity Portfolio
Common Stocks:
Argentina	$	78,443,371	$	—	$	—	$	78,443,371
Brazil		389,390,688		1,642,257,719		—		2,031,648,407
Canada		91,056,348		—		—		91,056,348
China		265,276,815		851,250,877		—		1,116,527,692
Colombia		184,385,134		—		—		184,385,134
Egypt		—		284,657,812		—		284,657,812
Hong Kong		330,535,115		100,618,721		—		431,153,836
Hungary		—		210,549,784		—		210,549,784
India		—		752,221,716		—		752,221,716
Indonesia		332,152,751		575,351,243		—		907,503,994
Macau		—		107,963,047		—		107,963,047
Malaysia		—		124,263,964		—		124,263,964
Mexico		651,066,347		—		—		651,066,347
Pakistan		—		210,756,980		—		210,756,980
Philippines		302,353,330		—		—		302,353,330
Russia		464,370,832		1,191,889,455		—		1,656,260,287
South Africa		—		2,009,805,321		—		2,009,805,321
South Korea		—		2,291,167,335		—		2,291,167,335
Taiwan		—		689,357,920		—		689,357,920
Thailand		—		462,354,024		—		462,354,024
Turkey		—		987,583,292		—		987,583,292
Preferred Stock		206,164,517		—		—		206,164,517
Short-Term Investment		—		162,901,675		—		162,901,675
Total	$	3,295,195,248	$	12,654,950,885	$	—	$	15,950,146,133
Developing Markets Equity Portfolio
Common Stocks:
Brazil	$	5,169,050	$	29,028,647	$	—	$	34,197,697
China		6,318,270		85,417,723		—		91,735,993
Colombia		17,308,044		—		—		17,308,044
India		18,433,549		20,571,113		—		39,004,662
Indonesia		—		12,573,063		—		12,573,063
Macau		—		6,680,484		—		6,680,484
Mexico		23,133,515		—		—		23,133,515
Peru		8,148,736		—		—		8,148,736
Philippines		—		3,102,916		—		3,102,916
Qatar		—		3,458,865		—		3,458,865
Russia		15,003,265		62,295,287		—		77,298,552
South Africa		—		18,177,970		—		18,177,970
South Korea		—		23,546,309		—		23,546,309
Taiwan		—		16,431,726		—		16,431,726
Turkey		—		13,011,392		—		13,011,392
United States		7,564,794		—		—		7,564,794
Preferred Stocks		20,021,840		5,654,471		—		25,676,311
Short-Term Investment		—		9,266,728		—		9,266,728
Total	$	121,101,063	$	309,216,694	$	—	$	430,317,757

Annual Report  169

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, 2012
Emerging Markets Equity Blend Portfolio
Common Stocks:
Argentina	$	494,336	$	—	$	—	$	494,336
Brazil		2,768,071		14,439,380		—		17,207,451
Cambodia		—		558,781		—		558,781
Canada		1,099,244		—		—		1,099,244
China		1,449,190		33,659,539		—		35,108,729
Colombia		9,090,837		—		—		9,090,837
Egypt		—		2,503,776		—		2,503,776
Georgia		—		573,321		—		573,321
Hong Kong		1,796,832		1,285,892		—		3,082,724
Hungary		—		1,777,383		—		1,777,383
India		5,485,702		—		—		5,485,702
Indonesia		2,082,132		7,190,919		—		9,273,051
Macau		—		4,073,247		—		4,073,247
Mexico		18,949,075		—		—		18,949,075
Philippines		2,090,180		—		—		2,090,180
Russia		11,442,602		28,953,098		—		40,395,700
South Africa		—		18,407,802		—		18,407,802
South Korea		—		23,526,406		—		23,526,406
Taiwan		—		11,171,186		—		11,171,186
Thailand		—		1,673,835		—		1,673,835
Turkey		4,412,461		3,705,014		—		8,117,475
United States		2,575,260		—		—		2,575,260
Preferred Stocks		8,762,935		3,434,198		—		12,197,133
Short-Term Investment		—		8,062,460		—		8,062,460
Total	$	72,498,857	$	164,996,237	$	—	$	237,495,094
Emerging Markets Multi-Strategy Portfolio
Assets:
Common Stocks:
Argentina	$	170,046	$	—	$	—	$	170,046
Brazil		1,170,599		4,855,355		—		6,025,954
Cambodia		—		203,416		—		203,416
Canada		379,300		—		—		379,300
China		499,946		11,695,931		—		12,195,877
Colombia		3,148,293		—		—		3,148,293
Egypt		—		862,294		—		862,294
Georgia		—		210,362		—		210,362
Hong Kong		614,211		470,515		—		1,084,726
Hungary		—		614,972		—		614,972
India		1,901,396		—		—		1,901,396
Indonesia		719,047		2,502,072		—		3,221,119
Macau		—		1,412,178		—		1,412,178
Mexico		6,495,833		—		—		6,495,833
Philippines		726,707		—		—		726,707
Russia		3,976,187		9,988,472		—		13,964,659
South Africa		—		6,428,125		—		6,428,125
South Korea		588,287		7,587,428		—		8,175,715
Taiwan		979,424		2,906,406		—		3,885,830
Thailand		—		611,313		—		611,313
Turkey		1,525,320		1,307,502		—		2,832,822
United States		892,620		—		—		892,620

170  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, 2012
Emerging Markets Multi-Strategy Portfolio (continued)
Preferred Stocks	$	3,034,351	$	1,202,819		$	—	$	4,237,170
Corporate Bonds		—		7,617,529			—		7,617,529
Foreign Government Obligations		—		10,390,856			—		10,390,856
Quasi Government Bonds		—		2,165,690			—		2,165,690
Supranationals		—		143,319			—		143,319
U.S. Treasury Securities		—		12,420,885			—		12,420,885
Short-Term Investment		—		11,233,357			—		11,233,357
Other Financial Instruments*
Credit Default Swap Agreement		—		22,062			—		22,062
Forward Currency Contracts		—		468,412			—		468,412
Interest Rate Swap Agreements		—		31,090			—		31,090
Purchased Options		—		151,113			—		151,113
Total	$	26,821,567	$	97,503,473		$	—	$	124,325,040
Liabilities:
Other Financial Instruments*
Credit Default Swap Agreement	$	—	$	(32,609	)	$	—	$	(32,609	)
Forward Currency Contracts		—		(225,182	)		—		(225,182	)
Interest Rate Swap Agreements		—		(7,296	)		—		(7,296	)
Written Option		—		(26,458	)		—		(26,458	)
Total	$	—	$	(291,545	)	$	—	$	(291,545	)
Emerging Markets Debt Portfolio
Assets:
Corporate Bonds	$	—	$	25,633,325		$	—	$	25,633,325
Foreign Government Obligations		—		223,748,841			—		223,748,841
Quasi Government Bonds		—		24,076,286			—		24,076,286
Supranationals		—		1,326,347			—		1,326,347
Short-Term Investment		—		945,135			—		945,135
Other Financial Instruments*
Forward Currency Contracts		—		1,007,664			—		1,007,664
Interest Rate Swap Agreements		—		159,245			—		159,245
Purchased Options		—		1,390,807			—		1,390,807
Total	$	—	$	278,287,650		$	—	$	278,287,650
Liabilities:
Other Financial Instruments*
Forward Currency Contracts	$	—	$	(421,441	)	$	—	$	(421,441	)
Interest Rate Swap Agreements		—		(23,581	)		—		(23,581	)
Written Option		—		(291,035	)		—		(291,035	)
Total	$	—	$	(736,057	)	$	—	$	(736,057	)
U.S. Realty Income Portfolio
Common Stocks	$	6,319,384	$	—		$	—	$	6,319,384
Preferred Stocks		33,150,015		—			—		33,150,015
Real Estate Investment Trusts		58,586,475		—			—		58,586,475
Short-Term Investment		—		7,119,345			—		7,119,345
Total	$	98,055,874	$	7,119,345		$	—	$	105,175,219

Annual Report  171

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, 2012
U.S. Realty Equity Portfolio
Common Stocks	$	5,223,405	$	—		$	—	$	5,223,405
Real Estate Investment Trusts		60,330,477		—			—		60,330,477
Short-Term Investment		—		2,013,852			—		2,013,852
Total	$	65,553,882	$	2,013,852		$	—	$	67,567,734
International Realty Equity Portfolio
Common Stocks:
Australia	$	—	$	121,546		$	—	$	121,546
Brazil		—		325,809			—		325,809
Canada		47,300		—			—		47,300
Finland		—		442,810			—		442,810
Hong Kong		—		792,156			—		792,156
Japan		—		840,959			—		840,959
Luxembourg		—		134,952			—		134,952
Norway		—		101,820			—		101,820
Singapore		—		122,712			—		122,712
United Kingdom		—		72,480			—		72,480
United States		107,837		—			—		107,837
Open-End Management Investment Company		84,402		—			—		84,402
Real Estate Investment Trusts:
Australia		—		512,465			—		512,465
Brazil		—		21,845			—		21,845
Canada		164,070		—			—		164,070
France		—		317,885			—		317,885
Italy		—		141,323			—		141,323
Japan		—		111,021			—		111,021
Singapore		—		180,840			—		180,840
United Kingdom		—		324,752			—		324,752
Short-Term Investment		—		27,309			—		27,309
Total	$	403,609	$	4,592,684		$	—	$	4,996,293
U.S. High Yield Portfolio
Corporate Bonds	$	—	$	176,966,308		$	—	$	176,966,308
Short-Term Investment		—		9,100,911			—		9,100,911
Total	$	—	$	186,067,219		$	—	$	186,067,219
U.S. Municipal Portfolio
Municipal Bonds	$	—	$	19,023,691		$	—	$	19,023,691
Short-Term Investment		—		460,912			—		460,912
Total	$	—	$	19,484,603		$	—	$	19,484,603
Global Fixed Income Portfolio
Corporate Bonds	$	—	$	1,437,323		$	—	$	1,437,323
Foreign Government Obligations		—		2,737,799			—		2,737,799
Quasi Government Bonds		—		229,021			—		229,021
Supranationals		—		383,427			—		383,427
U.S. Municipal Bonds		—		174,470			—		174,470
Short-Term Investment		—		29,424			—		29,424
Other Financial Instruments* Forward Currency Contracts		—		17,071			—		17,071
Total	$	—	$	5,008,535		$	—	$	5,008,535
Liabilities:
Other Financial Instruments* Forward Currency Contracts	$	—	$	(136,358	)	$	—	$	(136,358	)

172  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, 2012
Capital Allocator Opportunistic Strategies Portfolio
Assets:
Exchange-Traded Funds	$	178,847,664	$	—		$	—	$	178,847,664
Closed-End Management Investment Company		10,938,725		—			—		10,938,725
Short-Term Investment		—		37,897,561			—		37,897,561
Other Financial Instruments* Total Return Swap Agreement		—		72,576			—		72,576
Total	$	189,786,389	$	37,970,137		$	—	$	227,756,526
Liabilities:
Other Financial Instruments* Forward Currency Contracts	$	—	$	(30,006	)	$	—	$	(30,006	)
Total Return Swap Agreements		—		(83,897	)		—		(83,897	)
Total	$	—	$	(113,903	)	$	—	$	(113,903	)

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

Certain common stocks (See footnote (d) in the Notes to Portfolios of Investments) 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 on the basis of prices provided by independent pricing services. The forward currency contracts included in Level 2 were valued using quotations provided by an independent pricing service. The options included in Level 2 were valued at the last sales prices at the close of business of the exchanges on which they trade. The swap agreements included in Level 2 were valued by an independent pricing service. 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.

The fair value measurement process for the Level 3 preferred stock of Better Place, Inc., a company that is working to build the infrastructure to deliver a range of services relating to the use of electric vehicles, including battery charging and swap stations, includes significant unobservable inputs, including the continued monitoring of management changes, the implementation of the company’s business plan, and the application and timeliness of financing activities. Significant increases (decreases) in any of these inputs, in isolation or in combination, could result in a significantly higher (lower) fair value measurement.

In connection with the periodic implementation of fair value pricing procedures with respect to foreign securities (see Note 2(a)), certain equity securities (other than those securities described in footnote (d) in the Notes to Portfolios of Investments) in the Global Listed Infrastructure, 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, and International Realty Equity Portfolios were transferred from Level 1 to Level 2 as a result of fair value pricing procedure triggers being met and would revert to Level 1 when the fair value pricing procedure triggers are no longer met. There were no other transfers into or out of Levels 1, 2, or 3 during the year or period ended December 31, 2012.

For further information regarding security characteristics see Portfolios of Investments.

Annual Report  173

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, 2012:

Description	Balance as of December 31, 2011		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, 2012		Net Change in Unrealized Depreciation from Investments Still Held at December 31, 2012
U.S. Strategic Equity
Preferred Stock	$	823,560	$	—	$	—		$	(799,978	)	$	—	$	—	$	—	$	—	$	23,582	$	(799,978	)
U.S. Mid Cap Equity
Preferred Stock	$	2,374,420	$	—	$	—		$	(2,306,430	)	$	—	$	—	$	—	$	—	$	67,990	$	(2,306,430	)
U.S. Small-Mid Cap Equity
Preferred Stock	$	822,471	$	—	$	—		$	(798,920	)	$	—	$	—	$	—	$	—	$	23,551	$	(798,920	)
U.S. High Yield*
Corporate Bonds	$	—	$	—	$	(780,270	)	$	780,270		$	—	$	—	$	—	$	—	$	—	$	—

* The realized loss shown for the Portfolio reflects the write-off of securities that had previously been reported in the Portfolio of Investments at zero market value.

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, 2012, the notional amounts of purchases and sales of forward currency contracts were $438,110,037 and $463,530,658, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2012:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	1,355,765
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	(2,842,927	)

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2012 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	1,153,500
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(2,996,670	)

174  Annual Report

Emerging Markets Multi-Strategy Portfolio

During the year ended December 31, 2012, the notional amounts of purchases and sales of forward currency contracts were $209,551,338 and $202,629,345, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2012:

	Fair Value
Asset Derivatives
Credit Risk:
Gross unrealized appreciation on credit default swap agreement	$	22,062
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	468,412
Gross unrealized appreciation on purchased options	$	16,209
Interest Rate Risk:
Gross unrealized appreciation on interest rate swap agreements	$	31,090
Liability Derivatives
Credit Risk:
Gross unrealized depreciation on credit default swap agreement	$	(32,609	)
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	(225,182	)
Gross unrealized depreciation on written option	$	(21,165	)
Interest Rate Risk:
Gross unrealized depreciation on interest rate swap agreements	$	(7,296	)

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2012 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Credit Risk:
Net realized loss on credit default swap agreements	$	(131,980	)
Foreign Exchange Risk
Net realized gain on forward currency contracts	$	337,686
Net realized gain on options	$	17,853
Interest Rate Risk:
Net realized loss on interest rate swap agreements	$	(107,993	)

	Amount
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Credit Risk:
Net change in unrealized depreciation on credit default swap agreements	$	(10,507	)
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	232,760
Net change in unrealized appreciation on options	$	28,713
Interest Rate Risk:
Net change in unrealized appreciation on interest rate swap agreements	$	14,446

Emerging Markets Debt Portfolio

During the year ended December 31, 2012, the notional amounts of purchases and sales of forward currency contracts were $440,014,637 and $456,247,362, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2012:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	1,007,664
Gross unrealized appreciation on purchased options	$	133,633
Interest Rate Risk:
Gross unrealized appreciation on interest rate swap agreements	$	159,245
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	(421,441	)
Gross unrealized depreciation on written option	$	(232,812	)
Interest Rate Risk:
Gross unrealized depreciation on interest rate swap agreements	$	(23,581	)

Annual Report  175

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2012 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Credit Risk:
Net realized gain on credit default swap agreements	$	14,663
Foreign Exchange Risk:
Net realized loss on forward currency contracts	$	(161,855	)
Net realized loss on options	$	(244,896	)
Interest Rate Risk:
Net realized loss on interest rate swap agreements	$	(21,350	)
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Credit Risk:
Net change in unrealized depreciation on credit default swap agreements	$	(15,984	)
Foreign Exchange Risk:
Net change in unrealized appreciation on forward currency contracts	$	684,825
Net change in unrealized appreciation on options	$	35,328
Interest Rate Risk:
Net change in unrealized appreciation on interest rate swap agreements	$	135,664

Global Fixed Income Portfolio
During the period ended December 31, 2012, the notional amounts of purchases and sales of forward currency contracts were $13,809,365 and $14,048,342, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2012:

	Fair Value
Asset Derivatives
Foreign Exchange Risk:
Gross unrealized appreciation on forward currency contracts	$	17,071
Liability Derivatives
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	(136,358	)

The effect of derivative instruments on its Statement of Operations for the period ended December 31, 2012 was:

	Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	13,453
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(119,287	)

Capital Allocator Opportunistic Strategies Portfolio
During the year ended December 31, 2012, the notional amounts of purchases and sales of forward currency contracts were $59,360,350 and $62,562,962, respectively.

The following table summarizes the fair value of derivative instruments on its Statement of Assets and Liabilities as of December 31, 2012:

	Fair Value
Asset Derivatives
Equity Risk:
Gross unrealized appreciation on total return swap agreements	$	72,576
Liability Derivatives
Equity Risk:
Gross unrealized depreciation on total return swap agreements	$	(83,897	)
Foreign Exchange Risk:
Gross unrealized depreciation on forward currency contracts	$	(30,006	)

The effect of derivative instruments on its Statement of Operations for the year ended December 31, 2012 was:

		Amount
Realized Gain (Loss) on Derivatives Recognized in Income
Equity Risk:
Net realized loss on options	$	(4,579,224	)
Net realized gain on total return swap agreements	$	2,911,815
Foreign Exchange Risk:
Net realized gain on forward currency contracts	$	477,993
Interest Rate Risk:
Net realized gain on total return swap agreements	$	446,783

176  Annual Report

	Amount
Net Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income
Equity Risk:
Net change in unrealized depreciation on total return swap agreements	$	(1,200,769	)
Foreign Exchange Risk:
Net change in unrealized depreciation on forward currency contracts	$	(197,580	)
Net change in unrealized appreciation on options	$	4,310,371

None of the other Portfolios in the Fund traded in derivatives during the year ended December 31, 2012.

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

11. Accounting Pronouncement
In December 2011, the Financial Accounting Standards Board issued Accounting Standards Update No. 2011–11 (“ASU 2011–11”), “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” The ASU 2011–11 requires disclosure of both gross and net balances for certain investments and transactions entered into under master netting agreements, better aligning US GAAP requirements with International Financial Reporting Standards.

The ASU 2011–11 is effective for annual periods beginning on or after January 1, 2013. Management is currently evaluating the impact the adoption of ASU 2011–11 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 require disclosure.

Annual Report  177

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,” which comprise Lazard U.S. Equity Concentrated 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, Lazard Emerging Markets Debt Portfolio, 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, Lazard Global Fixed Income Portfolio (commenced operations on March 30, 2012) and Lazard Capital Allocator Opportunistic Strategies Portfolio) as of December 31, 2012 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, 2012, 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 audits are for the period from June 1, 2011 to December 31, 2012. 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, 2012, 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, 2012, 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, 2012, 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
March 1, 2013

178  Annual Report

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

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) and Other Public Company Directorships Held During the Past Five Years(2)
Independent Directors (3):
Kenneth S. Davidson (67)	Director (August 1995)	Davidson Capital Management Corporation, an investment manager, President (1978 - present)
		Balestra Capital, Ltd., an investment manager and adviser, Senior Advisor (July 2012 - present)
		Aquiline Holdings LLC, an investment manager, Partner (2006 - June 2012)
Nancy A. Eckl (50)	Director (April 2007)	College Retirement Equities Fund (eight accounts), Trustee (2007 - present)
		TIAA-CREF Funds (58 funds) and TIAA-CREF Life Funds (10 funds), Trustee (2007 - present)
		TIAA Separate Account VA-1, Member of the Management Committee (2007 - present)
		American Beacon Advisors, Inc. (“American Beacon”) and certain funds advised by American Beacon, Vice President (1990 - 2006)
Lester Z. Lieberman (82)	Director (October 1991)	Private Investor
Leon M. Pollack (72)	Director (August 2006)	Private Investor
Richard Reiss, Jr. (68)	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 (65)	Director (September 2004)	Fairwood Capital, LLC, a private investment corporation engaged primarily in real estate and hotel investments, President (2008 - present)
Interested Directors (4):
Charles L. Carroll (52)	Chief Executive Officer, President and Director (June 2004)	Investment Manager, Deputy Chairman and Head of Global Marketing (2004 - present)
Ashish Bhutani (52)	Director (July 2005)	Investment Manager, Chief Executive Officer (2004 - present)
		Lazard Ltd, Vice Chairman and Director (2010 - present)

Annual Report 179

(1)	The address of each Director is Lazard Asset Management LLC, 30 Rockefeller Plaza, New York, New York 10112-6300.
(2)	Each Director serves as a Director for each of the Lazard Funds (comprised of, as of January 31, 2013, 28 active investment portfolios). Each Director serves an indefinite term, until his or her successor is elected, and each Director serves in the same capacity for the other Lazard Funds. All of the Independent Directors (as defined below), 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)	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.

180  Annual Report

Name (Age) Address(1)	Position(s) with the Fund (Since) and Term(2)	Principal Occupation(s) During the Past Five Years
Officers (3):
Nathan A. Paul (40)	Vice President and Secretary (April 2002)	Managing Director and General Counsel of the Investment Manager
Stephen St. Clair (54)	Treasurer (May 2003)	Vice President of the Investment Manager
Brian D. Simon (50)	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 (37)	Assistant Secretary (February 2009)	Senior Vice President (since February 2012, previously Vice President and Counsel) of the Investment Manager
Cesar A. Trelles (38)	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  181

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 Considerations of Management Agreement

Lazard Emerging Markets Equity Blend Portfolio

At the meeting of the Board held on November 14, 2012, the Board considered the approval of amendment of the Management Agreement between the Fund, on behalf of the Lazard Emerging Markets Equity Blend Portfolio (the “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. Since the Board had renewed the Management Agreement at a meeting held on May 30, 2012 (the “May Meeting”), and, other than as discussed below, there had been no material changes in the information presented, the Board addressed many of the relevant considerations by reference to their considerations and determinations at the May Meeting.

Services Provided

The nature, extent and quality of services that the Investment Manager provides to the Fund had been considered at the May Meeting, and there had been no material changes in this information. Representatives of the Investment Manager stated, and the Directors considered, that the Investment Manager would continue to provide research and portfolio management and oversight of day-to-day operations, including supervision of fund accounting and administra-tion-related services and assistance in meeting legal and regulatory requirements; the Investment Manager does not believe that the proposed amendment to the Management Agreement would have any adverse impact on the scope or quality of the services provided to the Portfolio by the Investment Manager; and the proposed amendment also would not result in any change to the investment management of the Portfolio.

Comparative Management Fee, Expense Ratio and Performance Information

The Directors had considered comparative management fee, expense ratio and performance information at the May Meeting. The Directors considered that the amendment would reduce the management fee paid by the Portfolio and the Portfolio’s expense ratio. As a result, the Directors did not reconsider comparative fee and expense information, including fees paid to the Investment Manager by funds or separate or other accounts advised or sub-advised by the Investment Manager with investment objectives, policies and strategies similar to those of the Portfolio. In addition, the Directors did not consider the period of time since the May Meeting to be an adequate period of time for reconsideration of performance in connection with approving the amendment to the Management Agreement.

Investment Manager Profitability and Economies of Scale

The Directors had considered profitability, economies of scale and the potential benefits to the Investment Manager from acting as investment adviser at the May Meeting. As a result, the Directors did not reconsider economies of scale and potential benefits, which would not change materially under the amendment from those considered at the May Meeting. In addition, since the amendment would result in a reduction in the Investment Manager’s fee, the Directors did not reconsider profitability.

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 amendment of the Management Agreement with respect to the Portfolio. Based on its discussions and considerations as described above, the Board made the following conclusions and determinations.

182  Annual Report

•	The Board concluded that the nature, extent and quality of the services to be provided by the Investment Manager to the Portfolio continue to be adequate and appropriate.
•	The Board concluded that the fee to be paid to the Investment Manager continues to be reasonable in light of the considerations discussed above.
The Board considered these conclusions and determinations in their totality and, without any one factor being dispositive, determined that amendment of the Management Agreement for the Fund, on behalf of the Portfolio, was in the best interests of the Portfolio and its shareholders.

Annual Report  183

The Lazard Funds, Inc. Tax Information Year Ended December 31, 2012 (unaudited)

The following tax information represents year end disclosures of the tax benefits passed through to shareholders for 2012:

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 2012 Form 1099-DIV.

Portfolio	Percentage
U.S. Equity Concentrated		100.00	%
U.S. Strategic Equity		48.54
U.S. Mid Cap Equity		53.90
U.S. Small-Mid Cap Equity		100.00
Global Listed Infrastructure		100.00
International Equity		100.00
International Equity Select		100.00
International Strategic Equity		100.00
International Small Cap Equity		100.00
Emerging Markets Equity		100.00
Developing Markets Equity		100.00
Emerging Markets Equity Blend		100.00
Emerging Markets Multi-Strategy		86.56
Emerging Markets Debt		—
U.S. Realty Income		0.34
U.S. Realty Equity		3.03
International Realty Equity		6.75
U.S. High Yield		—
U.S. Municipal		—
Global Fixed Income		—
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 Concentrated		100.00	%
U.S. Strategic Equity		100.00
U.S. Mid Cap Equity		100.00
U.S. Small-Mid Cap Equity		75.18
Global Listed Infrastructure		11.30
International Equity		—
International Equity Select		—
International Strategic Equity		1.15
International Small Cap Equity		—
Emerging Markets Equity		—
Developing Markets Equity		0.85
Emerging Markets Equity Blend		0.97
Emerging Markets Multi-Strategy		0.74
Emerging Markets Debt		—
U.S. Realty Income		0.34
U.S. Realty Equity		3.30
International Realty Equity		—
U.S. High Yield		—
U.S. Municipal		—
Global Fixed Income		—
Capital Allocator Opportunistic Strategies		100.00

Of the dividends paid by the U.S. Municipal Portfolio, 79.81% represents tax-exempt interest.

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.

184  Annual Report

The Lazard Funds, Inc.

30 Rockefeller Plaza

New York, New York 10112-6300

Telephone: 800-823-6300

http://www.LazardNet.com

Investment Manager

Lazard Asset Management LLC

30 Rockefeller Plaza

New York, New York 10112-6300

Telephone: 800-823-6300

Distributor

Lazard Asset Management Securities LLC

30 Rockefeller Plaza

New York, New York 10112-6300

Custodian

State Street Bank and Trust Company

One Lincoln Street

Boston, Massachusetts 02111

Transfer Agent and Dividend Disbursing Agent

Boston Financial Data Services, Inc.

P.O. Box 8514

Boston, Massachusetts 02266-8514

Telephone: 800-986-3455

Independent Registered Public Accounting Firm

Anchin, Block & Anchin LLP

1375 Broadway

New York, New York 10018

http://www.anchin.com

Legal Counsel

Stroock & Stroock & Lavan LLP

180 Maiden Lane

New York, New York 10038-4982

http://www.stroock.com

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

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

www.LazardNet.com

© 2013 Lazard Asset Management LLC

12/12 LZDPS013

ITEM 2. CODE OF ETHICS.

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

ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.

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

ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant (the “Auditor”) for the audit of the Registrant’s annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $778,650 in 2011 and $816,400 in 2012.

(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 $161,900 in 2011 and $174,250 in 2012. 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 $161,900 in 2011 and $174,250 in 2012. There were no fees billed in the Reporting Periods by the Auditor to Service Affiliates.

(h) Not applicable.

ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.

Not applicable.

ITEM 6. INVESTMENTS

Not applicable.

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

Not applicable.

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

Not applicable.

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

Not applicable.

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

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

ITEM 11. CONTROLS AND PROCEDURES.

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

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

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

ITEM 12. EXHIBITS.

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

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

(a)(3) Not applicable.

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

SIGNATURES

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

The Lazard Funds, Inc.

By	/s/ Charles L. Carroll
	Charles L. Carroll
	Chief Executive Officer
Date	March 11, 2013

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

By	/s/ Charles L. Carroll
	Charles L. Carroll
	Chief Executive Officer
Date	March 11, 2013

By	/s/ Stephen St. Clair
	Stephen St. Clair
	Chief Financial Officer
Date	March 11, 2013